Middlefield Banc Corp.

Financial Statement

(Quarterly)

MIDDLEFIELD BANC CORP.
CONSOLIDATED BALANCE SHEET

				September 30,		December 31,
				2007		2006

ASSETS
	Cash and due from banks		$	7,732,190	$	6,893,148
	Federal funds sold			4,525,161		6,200,000
	Interest-bearing deposits in other institutions			564,831		546,454
		Cash and cash equivalents		12,822,182		13,639,602
	Investment securities available for sale			81,367,463		63,048,135
	Investment securities held to maturity (estimated
	market value of $120,545 and $134,306)			119,899		125,853
	Loans			307,026,362		249,190,534
	Less allowance for loan losses			3,112,669		2,848,887
		Net loans		303,913,693		246,341,647
	Premises and equipment			6,996,275		6,742,465
	Goodwill			5,439,066		123,175
	Bank-owned life insurance			7,082,906		6,872,743
	Accrued interest and other assets			5,750,920		3,958,084

		TOTAL ASSETS	$	423,492,404	$	340,851,704

LIABILITIES
	Deposits:
		Noninterest-bearing demand	$	42,109,757	$	41,002,573
		Interest-bearing demand		20,294,998		11,724,173
		Money market		24,406,099		14,738,767
		Savings		79,468,128		54,246,499
		Time		186,471,126		149,338,181
		Total deposits		352,750,108		271,050,193
	Short-term borrowings			2,512,582		1,609,738
	Other borrowings			31,102,006		36,112,738
	Accrued interest and other liabilities			2,281,561		1,615,101
		TOTAL LIABILITIES		388,646,257		310,387,770

STOCKHOLDERS' EQUITY
	Common stock, no par value; 10,000,000 shares authorized,
	1,624,389 and 1,519,887 shares issued			23,632,830		19,507,257
	Retained earnings			16,137,862		14,685,971
	Accumulated other comprehensive loss			(632,343)		(520,987)
	Treasury stock, at cost; 123,106 shares in 2007 and
	95,080 shares in 2006			(4,292,202)		(3,208,307)
		TOTAL STOCKHOLDERS' EQUITY		34,846,147		30,463,934

		TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	423,492,404	$	340,851,704


See accompanying unaudited notes to the consolidated financial statements.

MIDDLEFIELD BANC CORP.
CONSOLIDATED STATEMENT OF INCOME
(Unaudited)

				Three Months Ended				Nine Months Ended
				September 30,				September 30,
				2007		2006		2007		2006
INTEREST INCOME
Interest and fees on loans			$	5,604,206	$	4,393,937	$	15,449,822	$	12,598,616
Interest-bearing deposits in
other institutions				22,159		4,546		127,772		11,939
Federal funds sold				122,029		29,391		383,464		38,328
Investment securities:
Taxable interest				323,806		275,448		844,454		871,259
Tax-exempt interest				468,552		251,777		1,310,932		745,368
	Dividends on FHLB stock			32,426		20,979		84,193		61,517
Total interest income				6,573,178		4,976,078		18,200,637		14,327,027

INTEREST EXPENSE
Deposits				3,176,508		1,867,011		8,360,623		5,085,705
	Short-term borrowings			35,750		22,563		75,420		145,213
	Other borrowings			453,853		327,907		1,368,738		898,771
Total interest expense				3,666,111		2,217,481		9,804,781		6,129,689

NET INTEREST INCOME				2,907,067		2,758,597		8,395,856		8,197,338

Provision for loan losses				60,000		90,000		174,391		240,000

NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES				2,847,067		2,668,597		8,221,465		7,957,338

NONINTEREST INCOME
Service charges on deposit accounts				494,456		462,295		1,427,458		1,310,979
Investment securities losses, net				-		-		-		(5,868)
Earnings on bank-owned life insurance				69,917		64,431		210,170		177,603
Other income				89,437		116,876		286,053		305,869
Total noninterest income				653,810		643,602		1,923,681		1,788,583

NONINTEREST EXPENSE
Salaries and employee benefits				1,220,646		1,010,312		3,365,646		2,840,361
Occupancy expense				184,078		117,190		551,586		385,037
Equipment expense				139,197		108,380		393,411		301,066
Data processing costs				186,213		147,484		498,932		484,270
Ohio state franchise tax				109,673		90,000		313,873		270,000
Other expense				577,126		569,039		1,888,020		1,695,434
Total noninterest expense				2,416,933		2,042,405		7,011,468		5,976,168

Income before income taxes				1,083,944		1,269,794		3,133,678		3,769,753
Income taxes				223,000		339,000		621,128		1,033,587

NET INCOME			$	860,944	$	930,794	$	2,512,550	$	2,736,166

EARNINGS PER SHARE
		Basic	$	0.57	$	0.65	$	1.70	$	1.92
		Diluted		0.56		0.64		1.68		1.90

DIVIDENDS DECLARED PER SHARE			$	0.245	$	0.229	$	0.725	$	0.686


See accompanying unaudited notes to the consolidated financial statements.

The Middlefield Banking Company, Member FDIC. Equal Housing Lender

Font Size