Middlefield Banc Corp. 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

15985 East High Street
Middlefield, Ohio 44062
(Address of principal executive offices, including zip code)

The following information is furnished under Item 12. On January 23, 2004, Middlefield Banc Corp. issued a press release announcing financial results for the fourth quarter and year-to-date periods ended December 31, 2003. A copy of the press release is attached hereto as Exhibit 99 and is incorporated herein by this reference.

The information contained or incorporated by reference in this current report on Form 8-K may contain forward-looking statements, including certain plans, expectations, goals, and projections, which are subject to numerous assumptions, risks, and uncertainties. Actual results could differ materially from those contained or implied by such statements for a variety of factors, including: changes in economic conditions; movements in interest rates; competitive pressures on product pricing and services; success and timing of business strategies; the nature, extent, and timing of governmental actions and reforms; and extended disruption of vital infrastructure. All forward-looking statements included in this current report on Form 8-K are based on information available at the time of the report. Middlefield Banc Corp. assumes no obligation to update any forward-looking statement.

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

15985 East High Street
P. O. Box 35
Middlefield, Ohio 44062
Phone: 440/632-1666 FAX: 440/632-1700
www.middlefieldbank.com

Contact:

James R. Heslop, 2nd
Executive Vice President/Chief Operating Officer
(440) 632-1666 Ext. 3219
jheslop@middlefieldbank.com

MIDDLEFIELD, OHIO, January 23, 2004 #### Middlefield Banc Corp. (Pink Sheets: MBCN) today reported net income for the fiscal year ended December 31, 2003, of $2,799,000, an increase of 11.92% over the $2,501,000 reported for 2002. Earnings per diluted share for 2003 were $2.29, which compares to 2002’s $2.06.

For the three months ended December 31, 2003, of $832,000, or $0.68 per diluted share. The fourth quarter 2003 earnings represent an increase of 12.28% over the $741,000, or $0.61 per diluted share, recorded for the quarter ended December 31, 2002.

Middlefield’s total assets ended 2003 at $262,369,000, an increase of 15.97% over the level recorded at year-end 2002 of $226,246,000. Net loans increased 10.26% to $190,359,000, while deposits grew 17.32% to $219,840,000. Stockholders’ equity at year-end 2003 was $23,504,000, an increase of 8.08% over the prior year-end.

Non-interest income for the full year showed a 29.40% increase over 2002. The primary contributing factors were increased levels of service charges and earnings on bank owned life insurance.

The increase in non-interest expense, 17.27% on a full year basis, is the result of the opening of a new banking office in Orwell, Ohio, as well as the start-up of a financial services center. An additional part of this increase was due to the implementation of an annual incentive plan applicable to all employees.

The company’s key performance ratios for the year and for the fourth quarter remained strong. Return on Average Assets (ROA) for the year and for the quarter were 1.13% and 1.26%, respectively, compared to 1.17% and 1.31% a year ago. Return on Average Equity (ROE) improved to 12.39% for the year and 14.86% for the quarter. The comparable 2002 ratios were 12.08% and 13.79%.

Thomas G. Caldwell, President and Chief Executive Officer, commented, “Recognizing all of the obstacles to net income growth that 2003 presented, we are very pleased with our results. Although we continued to experience compression of our net interest margin, we were able to grow both sides of our balance sheet, while achieving a reasonable level of earnings growth.”

“The increase in 2003 earnings following a 10.14% increase in 2002 is the result of the excellent efforts of our staff. As we continue to focus on our core business model of being a true community bank, they have stepped forward to continue to provide the best in products and service to the markets that we serve, “ continued Caldwell.

Book value at year-end 2003 was $19.21, an increase of 6.79% from the $17.98 recorded at the end of 2002. Cash dividends paid during the year totaled $0.82 per share. Additionally, a five percent stock dividend was paid during December of 2003. The comparable adjusted cash dividend during 2002 was $0.70.

Middlefield Banc Corp. is the parent company of The Middlefield Banking Company, an Ohio state-chartered bank, both of which are headquartered in Middlefield, Ohio. The Middlefield Banking Company operates six full service banking centers and a UVEST Financial Services® brokerage office serving Chardon, Garrettsville, Mantua, Middlefield, and Orwell, Ohio. For more information, please visit www.middlefieldbank.com.

This announcement contains forward-looking statements that involve risk and uncertainties, including changes in general economic and financial market conditions and the Company’s ability to execute its business plans. Although management believes the expectations reflected in such statements are reasonable, actual results may differ materially.


	Middlefield Banc Corp.
	Consolidated Statements of Income
	(unaudited)

	For the Three Months Ended December 31,
	2003		2002		% Change
Earnings (in 000s)
Total interest income	$	3,682	$	3,609		2.02	%
Total interest expense		1,393		1,509		-7.69	%
Net interest income		2,289		2,100		9.00	%
Provision for loan losses		0		75		-100.00	%
Net interest income after provision for loan losses		2,289		2,025		13.04	%
Non-interest income		470		313		50.16	%
Security (losses) gains		0		0		0.00	%
Non-interest expense		1,589		1,333		19.20	%
Income before income tax		1,170		1,005		16.42	%


Federal income taxes		338			264		28.03	%
Net income	$	832		$	741		12.28	%

Per share (1)
Earning per common share - Basic	$	0.68		$	0.61		11.81	%
Earning per common share - Diluted		0.68			0.61		11.65	%
Cash dividends paid		0.21			0.19		10.25	%

Shares Outstanding
Basic		1,219,449			1,214,300		0.42	%
Diluted		1,223,652			1,216,811		0.56	%

Key performance ratios
Return on average assets (ROA)		1.26	%		1.31	%	-3.82	%
Return on average equity (ROE)		14.86	%		13.79	%	7.76	%
Net interest margin		3.96	%		3.96	%	0.00	%
Yield on earning assets		6.25	%		6.72	%	-6.99	%
Efficiency ratio		56.42	%		55.24	%	2.14	%
Net charge-offs to average loans (actual for the period)		0.04	%		0.00	%	N/A
Net charge-offs to average loans (annualized)		0.18	%		0.01	%	1700.00	%


	Middlefield Banc Corp.
	Consolidated Statements of Income
		(unaudited)

	For the Twelve Months Ended December 31,
	2003		2002		% Change
Earnings (in 000s)
Total interest income	$	14,596	$	14,120		3.37	%
Total interest expense		5,725		6,148		-6.88	%
Net interest income		8,871		7,972		11.28	%
Provision for loan losses		315		300		5.00	%
Net interest income after
provision for loan losses		8,556		7,672		11.52	%
Non-interest income		1,479		1,143		29.40	%
Security (losses) gains		1		0		N/A
Non-interest expense		6,105		5,206		17.27	%
Income before income tax		3,931		3,609		8.92	%
Federal income taxes		1,132		1,108		2.17	%
Net income	$	2,799	$	2,501		11.92	%

Per share (1)
Earning per common share - Basic	$	2.29	$	2.06		11.32	%
Earning per common share - Diluted		2.29		2.06		11.27	%
Cash dividends paid		0.82		0.70		17.14	%
Book Value (end of period)		19.21		17.98		6.79	%

Shares Outstanding
Basic		1,219,476		1,215,237		0.35	%
Diluted		1,222,829		1,217,231		0.46	%


At period end (in 000s)
Total Assets	$	262,369		$	226,246		15.97	%
Total deposits		219,840			187,384		17.32	%
Net loans receivable		190,359			172,643		10.26	%
Securities		51,825			42,159		22.93	%
Sharholders equity		23,504			21,746		8.08	%

Key performance ratios
Return on average assets (ROA)		1.13	%		1.17	%	-3.42	%
Return on average equity (ROE)		12.39	%		12.08	%	2.57	%
Net interest margin		3.87	%		3.99	%	-3.01	%
Yield on earning assets		6.30	%		6.99	%	-9.87	%
Efficiency ratio		58.98	%		57.12	%	3.26	%
Net charge-offs to average loans		0.05	%		0.04	%	25.00	%
Total allowance for loan losses to nonperforming loans		495.28	%		427.51	%	15.85	%
Nonperforming loans to total loans		0.27	%		0.31	%	-12.90	%
Total allowance for loan losses to total loans		1.31	%		1.31	%	-0.23	%
Equity to assets at period end		8.96	%		9.61	%	-6.78	%

(1)

Per share data has been restated to reflect the five per cent stock dividend paid in 2003


	Middlefield Banc Corp.
	Consolidated Balance Sheet
	As of December 31,
	2003		2002
ASSETS
Cash and due from banks	$	4,496	$	2,347
Federal funds sold		930		350
Securities available for sale		49,966		35,917
Securities held to maturity		1,859		6,242

Total cash and securities		57,251		44,856
Loans		192,880		174,943
Less: reserve for loan losses		2,521		2,300

Loans, net		190,359		172,643
Premises and equipment		6,808		6,481
Bank-owned life insurance		5,202		0
Accrued interest receivable and other assets		2,749		2,266

TOTAL ASSETS	$	262,369	$	226,246


	As of December 31,
	2003		2002
LIABILITIES
Deposits	$	219,840	$	187,384
Borrowed funds		18,110		16,476
Other liabilities		915		640

TOTAL LIABILITIES		238,865		204,500


EQUITY
Common equity		25,124		22,934
Net Unrealized gain (loss) on securities		125		475

8-K 4 l05273ae8vkxpdfy.pdf COURTESY COPY begin 644 l05273ae8vkxpdfy.pdf M)5!$1BTQ+C(-)>+CS],-"C$V(#`@;V)J#3P\(`TO3&EN96%R:7IE9"`Q(`TO M3R`Q."`-+T@@6R`V-S,@,3F4@,CD-+TEN9F\@,34@,"!2(`TO4F]O="`Q-R`P(%(@#2]0 M')E9@TP#24E14]`@("`@#3$W(#`@;V)J#3P\(`TO5'EP92`O0V%T M86QO9R`-+U!A9V5S(#0@,"!2(`TO2E0@,30@,"!2(`T^/B`-96YD;V)J#3(W M(#`@;V)J#3P\("]3(#0U("]&:6QT97(@+T9L871E1&5C;V1E("],96YG=&@@ M,C@@,"!2(#X^(`US=')E86T-"DB)8F!@8&9@8%K(P,+`H*C'P,N``"`V4)2! M(Z$_@X$!A*%``(@YH9B!(9V!EW$!`],M5?:=#]\P*SH*23`P``08`/ZS",(- M96YD"!;(#`@,"`V,3(@,3`P."!=(`TO4F]T871E(#`@ M#3X^(`UE;F1O8FH-,3D@,"!O8FH-/#P@#2]0F5R;R]J+TTO>B]N+V]N M92]!+VLO3R]T=V\O;2]Q=6]T7`UE"]T:')E92]++W!A&$I,38N-2AC*2TW+CDH="DM,C0W+C$H;BDR,RXW*&$I+364I,38N-"AR*2TR-C4N-"A) M*3(N.2AD*3(S+C8H92DM."AN="DR,2XQ*&EF:2DR,2XQ*&,I+3@H82DQ-BXT M*'0I+3,N,RAI*3(Q+C$H;RDM,"XX*&XI+3(V.2XQ*$XI,2XW*'4I,C,N-BAM M*2TQ-2XU*&)E*3$V+C0HDS/Z*J[!@5$/#AD(8B( M8BT@GNC*`(."P.#,`(.(G"(P'`8%!!218Q$%N;W0&,LCNZ+QB@MBU&A//1I,5;)5UM:K^NO5J_?___=]]7_OX9C(`L-QG/8+"@P(6.T8%IN@ MT<\+U2:H$\>/%_$*C)^&\Q]9\!S!RT6\TLH.>:'$GW;_9$=R]?A_3*;WT4H, MQVW@LZG]TQ2;91B)XY*:YA-]+B[SG5Q<%OMID])TL=NV&U2_BYJCFN^^9.'< M\;AX(KJ/1W<7E6^T-E*C6I.F-V@2]*K`Q"BM+DFK4QLTT4XJE6]\O"ITO()> M%:K1:W0IPND$5%6L7J56&73J:$V"6K=#I8U1!<4F:@UI21J5;X!*G1CMK-6I M8H4\?7*D/C8Z5JV+U>A_SIV@.;']-6T,QR06F+4E)B>P&3;8`@K[1(YI, MI)+J>7_8AS#`9,.@C.ZF@^GZ=[P_8X6U5CR^=8]]$G+(H(O;'1'5D=U1M2IK1;)8UXXUOX-`;`DK-'`.V):@L MP*L0Y2%;9%L(.5_?+H$RL%4VBU"0&J4B2V3=APP0!$%]8`!KL%1#*@I22DTU MYCF"&+&"B)9V<+R&\DFM[%?RWXES2]`*%S)#?.R*R52E:#?M3%&.;13[QA2& M%')2TR#?\`"'D6<$KX6/F#W[R:!H8T&,`N52X`7+R#/GGXZ\8T$T_[;+@GGA MR#&!J\\G+Q]K'1Q1@&63\P:?B/EN3DJT'(60F3PKEF9T\"-?R.#>L.8^?0?F MP1/F3DE3?H=1,A!7Y:MC?2*]G+A@S94MBG1#GG;]\_Q&F`]6W\(,<%AT2GU$ M27]SZ_2?3E]F>Y->(V:%:SRRC^)J]I$M-7T/1Q0/.M9MB=_=1@'_BX!@?PC!C90E0=-!TN572]RRLG=63E9.Q5(0R$<99-Y!:5[ M/U4`M@_\-R,W%DE]UZSDUB;]994BRI28O>V\?AA

(=R%]D'8^XI`R^/^^P M9[5$FM'"B\Y!7BW>_@K*_D;PH68?!N7G(F^T$FUE48L$1:)NYEWK;V'./K52'_WR68. MN2`/9NDM=YC""9<\VD!TZ2'5Q]"Y$+9Z^=[=$3^]17 M2'0-B(QW8^FA1_PLIO_DYW\=.K4V;,&:&(V.V];@>O4A*ZU+@=S3O*@%;WT) M>=\1UY,9**^%V1`*VUGP=`02V2`[3X0AN?LY)`'VXN='.L]P)85[=6'"%.=' MR>$ZF)FT@LP]V=RN%'5:G&)Z,DP:?-SPZBG(36A]L&`;P5=0#(3L:R#LZ0B8 M!M]_R%YT/4*B#]INPN?PP_L*F=UTTC_'W7Z\K6KXYEWV:7!52E9X05A,ZYZ3 M_^/V[;^XG7;IXN,^:&D>-]7!QEY^82I>8PX@S.OJF*VE&94[OD(E_$V'5`I% MCV4:M\9_8M#)TXR["M.+)$;85"=.V6SJJRRMWG](>0XFD5!#]3J2GV8%A!#"TA0"RF%&Z8Z8R?T]4!5I[%.!N0HY(]Z@)@^==AL MSSS>5YWIRXX%BY=E[EI<*.0_%]/MH#L*7-<_//O=CBA+A(MG*[\]!@0+SLBO MVHU#;11L0B^8-R?SL]N5=/*E]`MQ[BQBD75.8$A:62?'5XMJ2JJ/XN96_?M:,7 M%6!SWW-&TWM=C9W\-^-\`78;J&59V7J!HQ/HJ/8J4ST'"@J(YG37&F4350"_(<=:*+K#*+Z1 MW[C7:QR7MR%GE8`KU]6,3#IE['OOHR]%/DD)RS.)$UOY)!_;LRA M&S3L13!5-WT(YE4K88]0Z;!#$DWMS=BE3M_]<>,T M.=Z))^+YI,'.]>MZWV=]KX(XXA]R*0]CP/6XQB0K@YHX43/ MK-!O%7,3P`-:G!GM)>`W<\CQG%^'KAXZ/%S`<-BL0M?'[==RMK&<")!57#81NCGJ7=W^XEM"L#M5A==RR:%N M%;K[/Y/R#ME\#8E'^7^30_Y6,9CY;MEU?&,LFUQ2E71,7@-_S(5@!UV?YQYO%?-SR$!V:3A-)!VN MB,1*O)F!4/2?N"TJ-*BN.+#P1=\6"G5;2-UYR<8A&M:B:M,_)TN:PK^9LH>. MCLL.%F;Y'(<"-3N/KOP2)T*N"U'6=5>'3+D7\ETY;$`.&K?RWPM$DD9"I\U3 MABTJRD$.:IXBWH%"R1[*.P<^"J3.PI]X[-:6/Y"'2[JG!0Z%7=BRI$ M'7R956Q[*L0*H?"G=AV.YW42_*&*NIYI2B?@/1'^E3)AD9K`2^;0DEQEQ0\T M[ZY#H+,?E^@I*.2_D.CL091/DJ-$0LU5>5$';PK=N%U9<"G?P8PTI6TR$3.2 M[\T.Z0G;!B%ALHIPLC8=(QH_T""[E(^6X$4JJLVHWM3.VE?_O\0TD3<5_Y[] MA*24/T+!KQOR+A4*"8@-^5>SJ(F0WA6$G M'(?#81IVA@"V>2P63_T+1((*Q"-6*XCG816.G#H7BUG'V%:T0;>@2M]9(9ZH MTA/IB)'T^]J!DF1_H:=^VBBO#$?!OKHXPS4:5B)-)9==*1\=*&L_SI8:.]IO MT=(G(,7C>S'#X%(*UOC+&DMRZCM@F@:[XYF8UH8I8W)T*N:YZD-[,UB$C`1- MDI#1YL')MNKVET77X*U0X'*Z&"96`DW#+.QCFLO@.DHZHD)#!PQI+X9#.4^X MK7H.S<]+Y2[3L`GUZR`-7Y3`VY3TB3V$OR^K.UC8VP[.6=B5`/#4>&63U"'D M]FSMHJOW(?%[,;^>^%4EE:)11^W=%]2T5CYG]GI,31_8_"B8!8^WC>&!=-"V MP/E8OA$F=JJ8**H>[Y144,;B4A-3WQ4^+`?WP6_^S$(H?E`.GO1GI\W=HP-S M?$J9*NHY@_EOCXG*31!NA7#3'[SYC9S,*S>9&Z3YHC,(QM3&XC$FMI+*`%^) M_2*5@7TEE60E5-1P,$9^QIY%O9L5-5N@V0DD=+V#MW&BIU;XJ4-L"Q(HE:"B MAC(KX]QH?`3-2]V5%,U\I`C'`3T:+37<+!)H52RP5F2T+13;5@OA0U7448TE:RNMC`O59##8 MPR[&,^!K2=3IV'8#W<#I^@7QX52H4U.6W#X;LNTG70P4[.//U0_K]:=RB43? M<\3,__%-\8_>0DPR:DU9ELSMM#(](EW)X-_C1]@%_BY):$VN**6;3^K,)&2Y M"O5F&S(:O1M]7-RP!4_A?RM1'\XHU=/5Y04G=.0-C0J=5>L5#=Y'/9[BEM/X M=2>2>!8__S@6?87#+.ZN!NH\!-V!75=@C;[5J.\JP*8-`(F MNSE[#ZV*BXE2,%B"F=#SDA6/8QO+Z?K*G)X5.?VYKF.>Y!Z%M1*6%`YH>7ALKLP?80LIC9X51:1 ME;PG@5&G[4F*EHE-O"O7`)O0T?,A"OW(.:A=(1\W=R0G%C49VP^KS,/>OSP(!X=\M"GX_*H/10!^EUDFD M]I"X#Q-#DISB44Y!L;9`WJ%51K"DVB]Y29VHZJ:8GPRS91O#P[;XR;V6#1,O MZ/'(W-*;'QM1Q!9$%T27?EJMT7F]IJ2&.UZ7S\?CU^#5>/*P#[']4\[!)',QB^_`3-E#8VM-G_QV M\8J00I8L>P/OT0"AM:(?[HGA,SY8AE\%)ZHEOZ>/Z?N1P7=/FFO5X MA18O7<_Z[/X*7Z9\X]("LI@$.&Q`;^BRJR_2W7MU6KMC;6>5W77KKH^M95II%=$J;Y#E(8^`@)`0DIN0Q"0DY`GA MD5Q`2$!"!`01\?T`QU>=;:L+:"TVU=%UM-M6MSO[7>=S9_8+[KK_[,S]\YSS M._<\OM_O>"T/31%3YE/F+"KIHYUH#H,MD*C@\`&6G,H>%^+$GX_XANZT(:I, M:GS_H[45]VXQY.W%\/IQ\<@ZH*RQN638<#&?*W45TNN7IZ.Y6P;\G@S`A2,X(2EZ?R"(.K%48-IL8,OJ*\"]\:LD]DJ&` MU]OGE_I*"SD)YL(U:/>@,-TZ/AOZP6QH&)8E7FW9ELH4:"]ETW(95[7KN/P$ M%(\^AG-8(1,8["(:Z]&MU?#J=C0_0YE\'R2'NQ9"#2_::E>X+E#"PUGWQR'WI%GW MUO^Y5X#M->I$+(:%U=A_D5M_-NI.$&X*?0M^3IZZ\ZUX8ZDYMQ[W:@\/"JW% MME,4/`B_/-N>%\^@4O!QE2DKM")5/,BQEMAO4-`)!KV#>//^8DU,85$! M^$1I3C5@BS(>5-B(G8W6@!3"E^NF--0E;*F7,$4W)D8_I'3F2K$1V&NAQ MLC.9B@PN0QVA`#97\_,^;)J=T45N[434UT$8%R2/?7U?G,BI,T+@A3Q(MJO: M!B@X"(8/'>@,T!<["A)8E`_65QAWA2SR\#`Z:OD3%*P!<'Y<;V9B?F%F&G-K M%NYF""YK%L[1\@).ZQ=B_6%]]Z'G?C@T"]EB1*U&86@^HN^_"<7PG6N0_0$N M??BIH-0 M>H>QTNQF]WS/K;L>LRT\ID MK-E&3`(#3O-OZ?)T13H7:F%3LZ6)/FA7Y++D3-`D/M1PWC]$PT@G6E6%-JR4 M%V_/&/.%L-OAMLO"Z_ZZZJCN.U`9Q#KRF;!6[,VK(0RMM]8_)C]%79X[%>;UAUW#/.+"//(6IA&7Q:EG=B5QTOR\"*E4:JBE3#:3K9XYA\9%OQPM M/W/\Q,!8-Z-N(=2:&JF$3K%P;HN!W*%8!KID=LER*/(9J0;%>J]O+2,M+5:5TO.Z*AX6WT%LJ$##WF[=0 MR`F6?%4YVG'2,3+"C(T1[P&;F2#E)]H/><8]$9&-,F$''[9/R`H7*D+%A0O@5/?%QK;!D!8-:Y3!OK;<.$+')\#W<;.NDJJ MUE"NV<.L1'O^`(NQ%#6T=%!]/?8!)XZ_DP.CQA;],")6H/3H3+@@$9('*;_/ MX0NA;^1`C]FE[DR'-'H47>1Q:AOI!F>+'__TRU#_5Z0A"CPVO8MV.9I'VEC( MP!_X86=S5V,,OG#Q"`9DF,K"VH6<<#@Q*7886VLY2J:K*PD]9)D\4%C+K?D7 MT`*8$OT-G.=R!P)CUA@>Q7*@O=Y7+Z,T!EW"KQEY7\[E#JJKQ]:!$\KEP("U MU3*:\!"]&8U$:+4D4V4N-\5P<"F.)[-TF-D63U=#$W,+SB>P0`C^[HEPDH_R M"'\BAX6R4,EI3M1O;=/**9U:HBUGUJ(]",`&PM2H;W-3O0>M/BN&R5$!MWF_ ML74/%*'Z:$_)R5]QE#(7,(3I$XXV. MP4D:,B*T[]DR@A->!9$P\U2813"%0_O+:8+I%(A4>9Z^[4&R9EAI$4'>]8RS M`I5'2&J&69X(M-LJ5+K@:Y8Y_E>"7!E("]%>'1'4W1A=&4@#2]302!F86QS M92`-+U--(#`N,#(@#2]/4"!F86QS92`-+T)'(#(U(#`@4B`-+U5#4B`R-B`P M(%(@#2](5"`O1&5F875L="`-+U12("])9&5N=&ET>2`-/CX@#65N9&]B:@TR M-2`P(&]B:@T\/"`O1G5N8W1I;VY4>7!E(#`@+T1O;6%I;B!;(#`@,2!=("]2 M86YG92!;(#`@,2!=("]":71S4&5R4V%M<&QE(#@@+U-I>F4@6R`R-38@72`- M+TQE;F=T:"`R-S$@+T9I;'1E7V!A8F-D969G:&EJ:VQM;F]P<7)S='5V=WAY>GM\?7Y_ M@(&"@X2%AH>(B8J+C(V.CY"1DI.4E9:7F)F:FYR=GI^@H:*CI*6FIZBIJJNL MK:ZOL+&RL[2UMK>XN;J[O+V^O\#!PL/$Q<;'R,G*R\S-SL_0T=+3U-76U]C9 MVMOKK[.WN[_#Q\O/T]?;W^/GZ^_S]_O\"#`"M]G^! M"F5N9'-T'B`B(B(D)B8F*"HJ*BPN+BXP,C(R-#8V-C@Z.CH\/ MCX^0$)"0D1&1D9(2DI*3$Y.3E!24E)45E966%I:6EQ>7EY@8F)B9&9F9FAJ: MFIL;FYN<')RGIZ?'Y^?H""@H*$AH:&B(J*BHR.CHZ0DI*2E):6E MIB:FIJH**BHJ2FIJ:HJJJJK*ZNKK"RLK*TMK:VN+JZNKR^OK[`PL+"Q M,;&QLC*RLK,SL[.T-+2TM36UM;8VMK:W-[>WN#BXN+DYN;FZ.KJZNSN[N[P\ MO+R]/;V]OCZ^OK\_O[_`0,#`P4'!P<)"PL+#0\/#Q$3$Q,5%Q<7&1L;&QT?' MQ\A(R,C)29FYN;G9^?GZ&CHZ.EI MZ>GJ:NKJZVOKZ^QL[.SM;>WM[F[N[N]O[^_P?GY^GKZ^OM[^_O\?/S\_7W]_?Y^_O[_?___ M`@P`YZP_$`IE;F1S=')E86T-96YD;V)J#3$@,"!O8FH-/#P@#2]4>7!E("]0 M86=E(`TO4&%R96YT(#0@,"!2(`TO4F5S;W5R8V5S(#(@,"!2(`TO0V]N=&5N M=',@,R`P(%(@#2]-961I84)O>"!;(#`@,"`V,3(@,3`P."!=(`TO0W)O<$)O M>"!;(#`@,"`V,3(@,3`P."!=(`TO4F]T871E(#`@#3X^(`UE;F1O8FH-,B`P M(&]B:@T\/"`-+U!R;V-3970@6R`O4$1&("]497AT(%T@#2]&;VYT(#P\("]& M,B`R,2`P(%(@/CX@#2]%>'1'4W1A=&4@/#P@+T=3,2`R-"`P(%(@/CX@#3X^ M(`UE;F1O8FH-,R`P(&]B:@T\/"`O3&5N9W1H(#@Q.#<@/CX@#7-T2DM,C8X+C'1E*3$W*&XI+3`N,BAT+"E=5$H*,"`M,2XQ,C$Y(%1$ M"C`N,#$Q."!48PI;*&$I,38N."AN*2TP+C0H9"DM,C0T+C,H="DM,BXY*&DI M,C$N-2AM*2TQ-2XQ*&DI,C$N-2AN*2TP+C0H9RDM,C0T+C,H;RDM,"XT*&8I M+3(T,"XV*&=O=F4I,38N."AR;FTI+3$U+C$H92DQ-BXX*&YT*3(Q+C4H82DM M-RXV*&PI+3(T-BXX*&$I,38N."AC*2TW+C8H=&DI,C$N-2AO;G,I+3(S,RXS M*&$I+32DM M,C0T+C,H,C,L*2TR,C8H,C`P-"DM,C0T+C,H<')E*3$V+C@H2DM,CDR+C,H82DM-BXX*'4I+3(T*'0I+3(V+C4H:&\I+3(T*'(I M+3(P+C,H:2DM,C8N-2AZ*2TV+C@H92DM,S$N,BAD+BE=5$H*,S`N.37!E("]*;V)4:6-K971#;VYT96YT')E9@TP(#$V M(`TP,#`P,#`P,#`P(#8U-3,U(&8-"C`P,#`P,3,Y,S`@,#`P,#`@;@T*,#`P M,#`Q-#`X,B`P,#`P,"!N#0HP,#`P,#$T,3@T(#`P,#`P(&X-"C`P,#`P,C(T M,C0@,#`P,#`@;@T*,#`P,#`R,C0Y-2`P,#`P,"!N#0HP,#`P,#(R-34X(#`P M,#`P(&X-"C`P,#`P,C(U.#`@,#`P,#`@;@T*,#`P,#`R,C8S,"`P,#`P,"!N M#0HP,#`P,#(R-C8Y(#`P,#`P(&X-"C`P,#`P,C(W-#0@,#`P,#`@;@T*,#`P M,#`R,CF4@,38-+TE$6SPQ-S-F-#DW,S9D96(W M.3$P.68X8V0X930S-C,Q9#0W8SX\,3 -----END PRIVACY-ENHANCED MESSAGE-----


	MIDDLEFIELD BANC CORP.


Date: January 26, 2004	/s/	James R. Heslop, II

		Executive Vice President and COO


Treasury stock		(1,745	)		(1,663	)

TOTAL EQUITY		23,504			21,746


TOTAL LIABILITIES & EQUITY	$	262,369		$	226,246