Middlefield Banc Corp.

Financial Statement

(Quarterly)

MIDDLEFIELD BANC CORP.
CONSOLIDATED BALANCE SHEET

				June 30,		December 31,
				2007		2006

ASSETS
	Cash and due from banks		$	7,590,873	$	6,893,148
	Federal funds sold			4,299,341		6,200,000
	Interest-bearing deposits in other institutions			559,550		546,454
		Cash and cash equivalents		12,449,764		13,639,602
	Investment securities available for sale			71,874,997		63,048,135
	Investment securities held to maturity (estimated
	market value of $130,579 and $134,306)			119,899		125,853
	Loans			302,528,037		249,190,534
	Less allowance for loan losses			3,283,975		2,848,887
		Net loans		299,244,062		246,341,647
	Premises and equipment			6,831,770		6,742,465
	Goodwill			3,224,264		123,175
	Bank-owned life insurance			7,012,996		6,872,743
	Accrued interest and other assets			5,649,867		3,958,084

		TOTAL ASSETS	$	406,407,619	$	340,851,704

LIABILITIES
	Deposits:
		Noninterest-bearing demand	$	41,348,568	$	41,002,573
		Interest-bearing demand		13,128,166		11,724,173
		Money market		27,511,193		14,738,767
		Savings		73,077,850		54,246,499
		Time		171,792,572		149,338,181
		Total deposits		326,858,349		271,050,193
	Short-term borrowings			5,768,056		1,609,738
	Other borrowings			37,225,371		36,112,738
	Accrued interest and other liabilities			2,084,045		1,615,101
		TOTAL LIABILITIES		371,935,821		310,387,770

STOCKHOLDERS' EQUITY
	Common stock, no par value; 10,000,000 shares authorized,
	1,621,550 and 1,519,887 shares issued			23,521,438		19,507,257
	Retained earnings			15,644,003		14,685,971
	Accumulated other comprehensive income			(1,288,586)		(520,987)
	Treasury stock, at cost; 100,080 shares in 2007 and
	95,080 shares in 2006			(3,405,057)		(3,208,307)

		TOTAL STOCKHOLDERS' EQUITY		34,471,798		30,463,934

		TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	406,407,619	$	340,851,704

See accompanying unaudited notes to the consolidated financial statements.

MIDDLEFIELD BANC CORP.
CONSOLIDATED STATEMENT OF INCOME
(Unaudited)

		Three Months Ended			Six Months Ended
		June 30,				June 30,
		2007		2006		2007		2006
INTEREST INCOME
Interest and fees on loans	$	5,315,387	$	4,219,061	$	9,845,616	$	8,204,679
Interest-bearing deposits in
other institutions		49,724		4,272		105,613		7,393
Federal funds sold		130,200		5,358		261,435		8,937
Investment securities:
Taxable interest		254,534		289,841		520,648		595,811
Tax-exempt interest		459,595		248,440		842,380		493,591
Dividends on FHLB stock		26,272		23,341		51,767		40,538
Total interest income		6,235,712		4,790,313		11,627,459		9,350,949

INTEREST EXPENSE
Deposits		2,869,444		1,677,832		5,184,115		3,218,694
Short term borrowings		20,455		61,827		39,670		122,650
Other borrowings		469,473		297,890		914,885		570,864
Total interest expense		3,359,372		2,037,549		6,138,670		3,912,208

NET INTEREST INCOME		2,876,340		2,752,764		5,488,789		5,438,741

Provision for loan losses		69,391		75,000		114,391		150,000

NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES		2,806,949		2,677,764		5,374,398		5,288,741

NONINTEREST INCOME
Service charges on deposit accounts		481,055		435,842		933,002		848,684
Investment securities losses, net		-		-		-		(5,868)
Earnings on bank-owned life insurance		68,174		59,950		140,253		113,172
Other income		99,014		98,863		196,616		188,993
Total noninterest income		648,243		594,655		1,269,871		1,144,981

NONINTEREST EXPENSE
Salaries and employee benefits		1,040,092		835,105		2,145,000		1,830,049
Occupancy expense		198,278		113,544		367,508		267,847
Equipment expense		132,423		100,473		254,214		192,686
Data processing costs		161,471		158,279		312,719		336,786
Ohio state franchise tax		108,200		90,000		204,200		180,000
Other expense		680,369		600,631		1,310,894		1,126,395
Total noninterest expense		2,320,833		1,898,032		4,594,535		3,933,763

Income before income taxes		1,134,359		1,374,387		2,049,734		2,499,959
Income taxes		235,128		386,587		398,128		694,587

NET INCOME	$	899,231	$	987,800	$	1,651,606	$	1,805,372

EARNINGS PER SHARE
Basic	$	0.60	$	0.70	$	1.13	$	1.28
Diluted		0.59		0.69		1.11		1.26

DIVIDENDS DECLARED PER SHARE	$	0.240	$	0.224	$	0.480	$	0.448


See accompanying unaudited notes to the consolidated financial statements.

The Middlefield Banking Company, Member FDIC. Equal Housing Lender

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