FORM 10-Q
                    U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934

                For the Quarterly period ended June 30, 2006

                                      OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES
EXCHANGE ACT OF 1934

      For the transition period from      to

                         Commission file number 0-18542
                     MID-WISCONSIN FINANCIAL SERVICES, INC.
              (Exact name of registrant as specified in its charter)

            WISCONSIN                            06-1169935
  (State or other jurisdiction of    (IRS Employer Identification No.)
  incorporation or organization)

                            132 West State Street
                              Medford, WI  54451
            (Address of principal executive offices) (Zip Code)
     Registrant's telephone number, including area code:  715-748-8300

     Securities registered pursuant to Section 12(b) of the Act:  None
        Securities registered pursuant to Section 12(g) of the Act:

                         $.10 Par Value Common Stock
                               (Title of Class)

Indicate by check whether the registrant (1) has filed all reports required to
be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such report), and (2) has been subject to such filing
requirements for the past 90 days.          Yes (X)   No ( )

Indicate by check mark whether the registrant is a large accelerated filer, an
accelerated filer, or a non-accelerated filer.  See definition of "accelerated
filer and large accelerated filer" in Rule 12b-2 of the Exchange Act.
   Large accelerated filer ( ) Accelerated filer ( ) Non-accelerated filer (X)

Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act).    Yes ( )   No (X)

As of August 3, 2006 there were 1,638,676 shares of $0.10 par value common
stock outstanding.
<PAGE>

                     MID-WISCONSIN FINANCIAL SERVICES, INC.

                               TABLE OF CONTENTS

PART I  FINANCIAL INFORMATION                                            PAGE

        Item 1.  Financial Statements:

                 Consolidated Balance Sheets
                 June 30, 2006 and December 31, 2005                       3

                 Consolidated Statements of Income
                 Three Months Ended June 30, 2006 and 2005
                 And Six Months Ended June 30, 2006 and 2005               4

                 Consolidated Statements of Changes in
                 Stockholders' Equity
                 Six Months Ended June 30, 2006                            5

                 Consolidated Statements of Cash Flows
                 Six Months Ended June 30, 2006 and 2005                  5-6

                 Notes to Consolidated Financial Statements               7-8

        Item 2.  Management's Discussion and Analysis of
                 Financial Condition and Results of Operations            8-22


        Item 3.  Quantitative and Qualitative Disclosures About
                 Market Risk                                              23


        Item 4.  Controls and Procedures                                  23

PART II OTHER INFORMATION

        Item 1A. Risk Factors                                             23

        Item 4.  Submission of Matters to Vote of Security Holders        23

        Item 6.  Exhibits                                                 24

                 Signatures                                               24

                 Exhibit Index                                            25
<PAGE>

                        PART I - FINANCIAL INFORMATION

ITEM 1.  Financial Statements:

<TABLE>
                    Mid-Wisconsin Financial Services, Inc.
                               and Subsidiary
                        Consolidated Balance Sheets
<CAPTION>
                                                                June 30, 2006   December 31, 2005
                                                                 (Unaudited)         (Audited)
<S>                                                             <C>               <C>
ASSETS
Cash and due from banks                                          $13,436,707       $14,241,926
Interest-bearing deposits in other financial institutions             16,490            19,596
Federal funds sold                                                 2,497,669         9,133,605
Securities available for sale - at fair value                     78,568,603        76,822,771
Loans held for sale                                                  111,000           318,900
Loans receivable, net of allowance of
  $3,215,865 in 2006 and $3,028,048 in 2005                      326,407,004       307,342,034
Accrued interest receivable                                        2,058,044         1,928,159
Premises and equipment, net                                        9,021,118         9,026,908
Goodwill                                                             295,316           295,316
Other investments - at cost                                        2,742,633         2,971,574
Other assets                                                       6,032,148         5,288,629
TOTAL ASSETS                                                    $441,186,732      $427,389,418
LIABILITIES AND STOCKHOLDERS' EQUITY
Non-interest-bearing deposits                                    $43,425,528       $46,372,791
Interest-bearing deposits                                        285,896,360       266,280,540
  Total deposits                                                 329,321,888       312,653,331
Short-term borrowings                                             26,412,645        19,543,617
Federal Home Loan Bank borrowings                                 37,000,000        44,000,000
Subordinated debentures                                           10,310,000        10,310,000
Accrued interest payable                                           1,755,472         1,720,055
Accrued expenses and other liabilities                             1,493,639         1,789,674
Total liabilities                                                406,293,644       390,016,677
Stockholders' equity:
  Common stock-Par value $.10 per share:
   Authorized - 6,000,000 shares
   Issued and outstanding -
   1,638,676 shares at June 30, 2006 and 1,704,018 shares at
   December 31, 2005                                                 163,868           170,402
Additional paid-in capital                                        11,598,113        11,564,740
Retained earnings                                                 24,492,787        26,235,828
Accumulated other comprehensive loss                              (1,361,680)         (598,229)
Total stockholders' equity                                        34,893,088        37,372,741
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                      $441,186,732      $427,389,418

   Book Value Per Share                                               $21.29            $21.93
<FN>
    The accompanying notes to the consolidated financial statements are an
integral part of these statements.
</TABLE>
<PAGE>

ITEM 1.  Financial Statements Continued:

<TABLE>
                          Mid-Wisconsin Financial Services, Inc.
                                     and Subsidiary
                           Consolidated Statements of Income
                                      (Unaudited)
<CAPTION>
                                                  Three Months Ended              Six Months Ended
                                             June 30, 2006   June 30, 2005   June 30, 2006   June 30, 2005
<S>                                            <C>             <C>            <C>              <C>
Interest and dividend income:
  Loans, including fees                        $6,244,673      $4,780,015     $12,030,029      $9,197,420
  Securities
     Taxable                                      605,918         523,663       1,187,494       1,160,753
     Tax-exempt                                   220,827         235,710         449,337         478,384
  Other interest and dividend income               90,161         165,880         203,613         270,821
Total interest and dividend income              7,161,579       5,705,268      13,870,473      11,107,378
Interest expense:
  Deposits                                      2,499,256       1,350,685       4,667,246       2,563,459
  Short-term borrowings                           310,267         198,795         567,309         339,911
  Federal Home Loan Bank borrowings               359,444         450,539         707,570         896,126
  Subordinated debentures                         153,568               0         307,135               0
Total interest expense                          3,322,535       2,000,019       6,249,260       3,799,496
Net interest income                             3,839,044       3,705,249       7,621,213       7,307,882
Provision for loan losses                         124,950          75,000         249,900         136,600
Net interest income after provision
  for loan losses                               3,714,094       3,630,249       7,371,313       7,171,282
Non-interest income:
  Service fees                                    238,199         240,212         455,099         416,611
  Trust service fees                              229,171         228,877         461,990         430,950
  Investment product commissions                   73,064          60,882         170,847         110,548
  Other operating income                          331,796         293,481         595,381         659,731
Total non-interest income                         872,230         823,452       1,683,317       1,617,840
Non-interest expenses:
  Salaries and employee benefits                1,894,879       1,607,629       3,604,568       3,156,874
  Occupancy                                       419,925         327,633         834,965         673,041
  Data processing and information systems         180,567         122,586         341,557         239,273
  Purchased core deposit amortization                   0          77,158               0         154,316
  Other operating expenses                        629,598         667,072       1,301,408       1,347,700
Total non-interest expenses                     3,124,969       2,802,078       6,082,498       5,571,204
Income before provision for income taxes        1,461,355       1,651,623       2,972,132       3,217,918
Provision for income taxes                        475,957         536,839         970,819       1,036,023
Net income                                       $985,398      $1,114,784      $2,001,313      $2,181,895
Basic earnings per share                            $0.60           $0.65           $1.21           $1.28
Diluted earnings per share                          $0.60           $0.65           $1.21           $1.28
Cash dividends declared per share                   $0.62           $0.62           $0.84           $0.84
<FN>
 The accompanying notes to the consolidated financial statements are an integral part of these
statements.
</TABLE>
<PAGE>

ITEM 1.  Financial Statements Continued:

<TABLE>
                                      Mid-Wisconsin Financial Services, Inc.
                                                 and Subsidiary
                            Consolidated Statement of Changes in Stockholders' Equity
                                                 June 30, 2006
                                                  (Unaudited)
<CAPTION>
                                                                                             Accumulated
                                                                Additional                       Other
                                            Common Stock          Paid-In        Retained    Comprehensive
                                         Shares      Amount       Capital        Earnings         Loss         Totals
<S>                                    <C>          <C>         <C>            <C>           <C>             <C>
Balance, December 31, 2005             1,704,018    $170,402    $11,564,740    $26,235,828     $(598,229)    $37,372,741
Comprehensive Income:
  Net Income                                                                     2,001,313                     2,001,313
  Other comprehensive loss                                                                      (763,451)       (763,451)
    Total comprehensive income                                                                                 1,237,862
Issuance of common stock                  16,000       1,600        574,400                                      576,000
Repurchase of common stock
returned to unissued                     (81,342)     (8,134)      (552,312)    (2,367,866)                   (2,928,312)
Stock-based compensation                                             11,285                                       11,285
Cash dividends paid, $0.84 per share                                            (1,376,488)                   (1,376,488)
Balance, June 30, 2006                 1,638,676    $163,868    $11,598,113    $24,492,787   $(1,361,680)    $34,893,088
<FN>
 The accompanying notes to the consolidated financial statements are an integral part of these statements.
</TABLE>

<TABLE>
                    Mid-Wisconsin Financial Services, Inc.
                               and Subsidiary
                    Consolidated Statements of Cash Flows
                                (Unaudited)
<CAPTION>
                                                                 Six months ended
                                                           June 30, 2006   June 30, 2005
<S>                                                          <C>             <C>
Increase (decrease) in cash and due from banks:
  Cash flows from operating activities:
     Net income                                              $2,001,313      $2,181,895
     Adjustments to reconcile net income to net cash
     provided by operating activities:
        Provision for depreciation and net amortization         401,917         462,859
        Provision for loan losses                               249,900         136,600
        Loss on premises and equipment disposals                 10,396           1,428
        Federal Home Loan Bank stock dividends                        0         (69,400)
        Stock-based compensation                                 11,285           8,058
        Changes in operating assets and liabilities:
        Loans held for sale                                     207,900         209,525
        Other assets                                           (422,185)       (153,199)
        Other liabilities                                      (260,618)       (238,406)
  Net cash provided by operating activities                   2,199,908       2,539,360
</TABLE>
<PAGE>

ITEM 1.  Financial Statements Continued:

<TABLE>
                       Mid-Wisconsin Financial Services, Inc.
                                  and Subsidiary
                       Consolidated Statements of Cash Flows
                                   (Unaudited)
<CAPTION>
                                                                          Six months ended
                                                                    June 30, 2006   June 30, 2005
<S>                                                                  <C>             <C>
     Net decrease in interest-bearing deposits
     in other financial institutions                                       3,106           3,315
     Net decrease in federal funds sold                                6,635,936      16,008,863
     Securities available for sale:
          Proceeds from maturities                                     9,923,024      10,835,378
          Payment for purchases                                      (12,828,349)    (11,631,997)
     Net increase in loans                                           (19,353,870)    (12,922,379)
     Capital expenditures                                               (422,700)     (1,729,307)
     Federal Home Loan Bank stock redemption                             228,941               0
     Proceeds from sale of premises and equipment                              0             718
     Proceeds from sale of other real estate                                   0          30,965
  Net cash provided by (used in) investing activities                (15,813,912)        595,556
  Cash flows from financing activities:
     Net increase (decrease) in deposits                              16,668,557     (15,390,861)
     Net increase in short-term borrowings                             6,869,028      11,513,485
     Principal payments on Federal Home Loan Bank borrowings          (9,500,000)              0
     Proceeds from issuance of Federal Home Loan Bank borrowings       2,500,000               0
     Issuance of common stock                                            576,000               0
     Payment for repurchase of common stock                           (2,928,312)              0
     Cash dividends paid                                              (1,376,488)     (1,431,005)
   Net cash provided by (used in) financing activities                12,808,785      (5,308,381)
Net decrease in cash and due from banks                                 (805,219)     (2,173,465)
Cash and due from banks at beginning                                  14,241,926      12,566,937
Cash and due from banks at end                                       $13,436,707     $10,393,472
  Supplemental cash flow information:
     Cash paid during the year for:
          Interest                                                    $6,213,843      $3,655,440
          Income taxes                                                $1,083,000        $948,000
  Noncash investing and financing activities:
          Loans transferred to other real estate                         $39,000              $0
          Loans charged off                                              $70,568         $56,615
          Loans made in connection with the sale of
          other real estate                                                   $0         $40,707
<FN>
The accompanying notes to the consolidated financial statements are an integral part of these
statements.
</TABLE>
<PAGE>

                    MID-WISCONSIN FINANCIAL SERVICES, INC.
                               and Subsidiary
                  Notes to Consolidated Financial Statements

Note 1 - General

In the opinion of management, the accompanying unaudited consolidated financial
statements contain all adjustments necessary to present fairly Mid-Wisconsin
Financial Services, Inc.'s and Subsidiary ("Mid-Wisconsin") financial position,
results of its operations, changes in stockholders' equity and cash flows for
the periods presented, and all such adjustments are of a normal recurring
nature.  The consolidated financial statements include the accounts of all
subsidiaries.  All material intercompany transactions and balances are
eliminated.  The results of operations for the interim periods are not
necessarily indicative of the results to be expected for the entire year.

These interim consolidated financial statements have been prepared according to
the rules and regulations of the Securities and Exchange Commission and,
therefore, certain information and footnote disclosures normally presented in
accordance with generally accepted accounting principles have been omitted or
abbreviated.  The information contained in the consolidated financial
statements and footnotes in Mid-Wisconsin's Annual Report on Form 10-K, for the
year ended December 31, 2005, should be referred to in connection with the
reading of these unaudited interim financial statements.

In preparing the consolidated financial statements, management is required to
make estimates and assumptions that affect the reported amounts of assets and
liabilities as of the date of the balance sheet and revenues and expenses for
the periods presented.  Actual results could differ significantly from those
estimates.  Estimates that are susceptible to significant change include the
determination of the allowance for loan losses and the valuations of
investments.

Note 2 - Earnings Per Share

Basic earnings per share are based upon the weighted average number of common
shares outstanding.  Diluted earnings per share includes the potential common
stock shares issued if outstanding stock options were exercised.

Presented below are the calculations for basic and diluted earnings per share:

<TABLE>
<CAPTION>
                                                Three Months Ended  Six Months Ended
                                                     June 30,            June 30,
                                                  2006      2005      2006      2005
                                                 (In thousands, except per share data)
<S>                                              <C>      <C>       <C>       <C>
Net income available to common stockholders       $985    $1,115    $2,001    $2,182
Weighted average shares outstanding              1,639     1,704     1,650     1,704
Effect of dilutive stock options outstanding         3         2         3         2
Diluted weighted average shares outstanding      1,642     1,706     1,653     1,706
Basic earnings per common share                  $0.60     $0.65     $1.21     $1.28
Diluted earnings per common share                $0.60     $0.65     $1.21     $1.28
</TABLE>
<PAGE>

Note 3 - Income Taxes

The Internal Revenue Service ("IRS") has conducted an audit of Mid-Wisconsin's
1999-2002 tax returns.  In July 2005, Mid-Wisconsin paid approximately
$143,000 in taxes, interest and penalties as a result of the IRS audit. Mid-
Wisconsin believes all tax returns were filed appropriately and, at this time,
no additional tax expense has been recorded.  This assessment is in the process
of being appealed.

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
         CONDITION AND RESULTS OF OPERATION

Mid-Wisconsin Financial Services, Inc. is a full-service financial services
company, providing a wide variety of loan, deposit and other banking products
and services to its business, individual, and municipal customers, as well as a
full range of trust, investment and cash management services.  Mid-Wisconsin
operates as a one bank holding company and owns Mid-Wisconsin Bank ("Bank"),
chartered as a state bank in Wisconsin.

The following discussion and analysis is presented to assist in the
understanding and evaluation of Mid-Wisconsin's consolidated financial
condition and results of operations for the three months and six months ended
June 30, 2006 and 2005.  It is intended to supplement the unaudited financial
statements, footnotes, and supplemental financial data appearing elsewhere in
this Form 10-Q and should be read in conjunction therewith.  Quarterly
comparisons reflect continued consistency of operations and do not reflect any
significant trends or events other than those noted in the comments.

Forward-looking statements have been made in this document that are subject to
risks and uncertainties.  While Mid-Wisconsin believes that these forward-
looking statements are based on reasonable assumptions, all such statements
involve risk and uncertainties that could cause actual results to differ
materially from those contemplated in this report.  The assumptions, risks, and
uncertainties relating to the forward-looking statements in this report include
those described under the caption "Forward-Looking Statements" in Item 1 of
Mid-Wisconsin's Form 10-K for the year ended December 31, 2005 (the "2005 Form
10-K") and, from time to time, in Mid-Wisconsin's other filings with the
Securities and Exchange Commission.  Additional risk factors relating to an
investment in Mid-Wisconsin common stock are described under Item 1A of the
2005 Form 10-K.  Mid-Wisconsin does not intend to update forward-looking
statements.

Critical Accounting Policy

The consolidated financial statements of Mid-Wisconsin are prepared in
conformity with accounting principles generally accepted in the United States
of America and follow general practices within the industry in which its
operates.  This preparation requires management to make estimates, assumptions
and judgments that affect the amounts reported in the consolidated financial
statements and accompanying notes.  These estimates, assumptions and judgments
are based on information available as of the date of the financial statements;
accordingly, as this information changes, actual results could differ from the
estimates, assumptions and judgments reflected in the financial statements.
Certain policies inherently have a greater reliance on the use of estimates,
assumptions and judgments and, as such, have a greater possibility of producing
results that could be materially different than originally reported.
Management believes the following policy is both important to the portrayal of
Mid-Wisconsin's financial condition and requires subjective or complex
judgments and, therefore, a critical accounting policy.
<PAGE>

Management considers the accounting policy relating to the allowance for loan
losses to be a critical accounting policy because of the uncertainty and
subjectivity inherent in estimating the levels of allowance needed to cover
credit losses within the loan portfolio and the material effect that these
estimates can have on Mid-Wisconsin's results of operations.  The evaluation of
the allowance for loan losses at June 30, 2006 considers the allowance to be
adequate.  Under adversely different conditions or assumptions, Mid-Wisconsin
would need to increase the allowance.

Management reviews the adequacy of the allowance for loan losses on a quarterly
basis to determine the allowance is adequate to provide for possible losses
inherent in the loan portfolio as of the balance sheet date. Factors considered
by management in evaluating the adequacy of the allowance for loan losses
include past loan loss experience, trends in past due and nonperforming loans,
risk rating codes and current economic conditions.  Mid-Wisconsin has an
internal risk analysis and review staff that continuously reviews loan quality
and reports the results of its examinations to executive management and the
Board of Directors.

Loans are initially graded when originated.  They are regraded as they are
renewed, become delinquent, or facts demonstrate a heightened risk of
nonpayment.  Loan reviews attempt to identify problem and watch list loans.
Problem and watch list loans generally exhibit repeated delinquencies,
managerial problems and customer's failure to provide financial information or
collateral documentation.

After problem and watch list loans are identified, management will allocate a
portion of the allowance for loan loss to cover management's estimate of
probable loss.  Management then estimates the potential loss for the remainder
of the loan portfolio.  Each loan type is broken into categories based on
delinquency, specialty credits and rating code and a percentage of the
allowance is allocated based on loan category balances.  To the extent that the
current allowance is sufficient or insufficient to cover management's best
estimate of probable loss, management adjusts the provision for loan losses
accordingly.

Results of Operations

Mid-Wisconsin reported second quarter net income of $985,000, or $0.60 per
diluted share compared to $1.1 million, or $0.65 per diluted share for the
second quarter of 2005. Return on average assets for the quarter ended June 30,
2006 was .92% compared to 1.11% for the same period in 2005.  Return on equity
for the second quarter 2006 was 11.24% versus 12.35% for the quarter ended June
30, 2005.  Cash dividends paid were $0.62 per share for the second quarters
ended 2006 and 2005.

For the six months ended June 30, 2006, net income was $2.0 million compared to
$2.2 million for the same period one year ago.  Diluted earnings per share were
$1.21 at June 30, 2006 compared to $1.28 diluted earnings per share a year
earlier.

Key factors affecting the current quarter results were:

   o  Despite the cost of funds rising faster than the yield on assets,
      the net interest margin has held steady at 3.90% at March 31, 2006 and
      3.92% at June 30, 2006 due to the mix of earning assets.  Tax equivalent
      net interest income was $3.9 million for the quarter ended June 30, 2006
      compared to $3.7 million for the same period a year ago.
<PAGE>

   o  Total loans were $329.6 million at June 30, 2006, an increase of
      $19.2 million or 6.2%, from December 31, 2005.  Total deposits were
      $329.3 million at June 30, 2006, an increase of $16.7 million from year-
      end 2005.  Credit quality remains excellent and is presently not a
      concern. Mid-Wisconsin has retained strong credit quality with
      nonperforming assets to total assets of 0.43%.  Net loan charge-offs
      during the second quarter were $15,000 and $62,000 year-to-date.

   o  Non-interest income increased 5.8% during second quarter 2006
      compared to second quarter 2005 driven by gains in investment product
      commissions, gains from the sale of loans and increased ATM fees.

   o  Non-interest expense was $3.1 million at June 30, 2006, a $323,000
      increase from second quarter 2005, due to corporate growth and branching
      initiatives.  These expenses will continue throughout the second half of
      2006.  The Bank opened its 13{th} full service branch in Minocqua,
      Wisconsin in June 2006.

The following Table 1 presents quarterly summary results of operations.
<PAGE>

<TABLE>
Table 1: Summary Results of Operations
(dollars in thousands, except per share data)
<CAPTION>
                                                                                     Quarter Ended
                                                               June 30,   March 31,   December 31,   September 30,   June 30,
                                                                  2006        2006           2005            2005       2005
<S>                                                           <C>         <C>            <C>             <C>        <C>
Results of operations:
Interest income                                                 $7,162      $6,709         $6,588          $6,255     $5,705
Interest expense                                                 3,323       2,927          2,648           2,334      2,000
Net interest income                                              3,839       3,782          3,940           3,921      3,705
Provision for loan losses                                          125         125             90             115         75
Net interest income after provision for loan losses              3,714       3,657          3,850           3,806      3,630
Non-interest income                                                872         811            834             860        824
Non-interest expenses                                            3,125       2,957          3,046           2,859      2,802
Income before provision for income taxes                         1,461       1,511          1,638           1,807      1,652
Provision for income taxes                                         476         495            576             663        537
Net income                                                        $985      $1,016         $1,062          $1,144     $1,115

Return on average assets                                          0.92%       0.96%          1.01%           1.10%      1.11%
Return on average equity                                         11.24%      11.32%         11.51%          12.48%     12.35%
Equity to assets                                                  8.11%       8.39%          8.67%           8.71%      8.87%
Net interest margin                                               3.92%       3.90%          4.08%           4.12%      4.03%
Average Balance Sheet
Loans net of unearned income                                  $320,854    $314,212       $312,358        $303,744   $287,679
Assets                                                         428,843     424,717        422,381         417,692    403,289
Deposits                                                       315,421     312,082        304,246         296,241    286,147
Short-term borrowings                                           26,923      25,584         22,559          32,311     28,584
Federal Home Loan Bank borrowings                               37,000      37,233         46,065          49,000     49,000
Stockholders' equity                                            35,046      35,906         36,909          36,662     36,121
Ending Balance Sheet
Loans net of unearned income                                  $329,623    $314,916       $310,370        $311,604   $297,060
Assets                                                         441,187     424,504        427,389         423,866    407,231
Deposits                                                       329,322     315,279        312,653         295,547    287,996
Federal Home Loan Bank borrowings                               37,000      37,000         44,000          49,000     49,000
Subordinated debentures                                         10,310      10,310         10,310               0          0
Stockholders' equity                                            34,893      35,321         37,373          36,963     36,614
Financial Condition Analysis
Total risk-based capital                                         14.43%      14.98%         12.59%          12.44%     12.88%
Net charge-offs to average loans                                  0.00%       0.01%          0.02%           0.01%      0.00%
Nonperforming assets to gross loans                               0.58%       0.61%          0.49%           0.72%      0.50%
Efficiency ratio                                                 64.60%      62.68%         62.18%          58.26%     60.14%
Net interest income to average assets                             0.90%       0.89%          0.93%           0.94%      0.92%
Non-interest income to average assets                             0.20%       0.19%          0.20%           0.21%      0.20%
Non-interest expenses to average assets                           0.73%       0.70%          0.71%           0.67%      0.69%
Stockholders' Data
Basic and diluted earnings per share                             $0.60       $0.61          $0.62           $0.67      $0.65
Book value per share                                            $21.29      $21.55         $21.93          $21.70     $21.49
Dividends per share                                              $0.62       $0.22          $0.22           $0.22      $0.62
Dividend payout ratio                                            103.1%       35.5%          35.3%           32.8%      94.7%
Average common shares outstanding-basic                          1,639       1,662          1,704           1,704      1,704
Average common shares outstanding-diluted                        1,642       1,665          1,706           1,706      1,706
Stock Price Information
High                                                            $36.50      $37.00         $35.40          $34.00     $35.50
Low                                                              36.00       35.40          32.90           33.00      34.00
Market price at quarter end (1)                                  36.00       36.50          35.40           33.00      34.00
<FN>
(1) Market value price represents the bid price.  The quotations reflect prices, without retail mark-up, markdown or
     commissions, and may not necessarily represent actual transactions.
</TABLE>
<PAGE>

Net Interest Income

Net interest income represents the difference between interest earned on loans,
securities and other interest-earning assets, and the interest expense
associated with the deposits and borrowings that fund assets.  The interest
income and interest expense of financial institutions are significantly
affected by general economic conditions, competition, policies of regulatory
agencies, contractual maturities and repricing frequencies.

The net interest margin has shown stability over the first half of 2006 ranging
between 3.90% to 4.08% over the past three quarters.  Fully taxable equivalent
net interest income remained relatively unchanged at $3.9 million for the first
and second quarters of 2006.  Loan yields in the quarter ended June 30, 2006
was 7.80% compared to 6.59% a year ago, an increase of 121 basis points.  The
rate paid on interest-bearing liabilities was 3.83% during the second quarter
2006 compared to 2.49% a year ago, an increase of 134 basis points.

The sustained flattening of the yield curve coupled with tightening loan
spreads and a shift in funding towards higher cost deposits and borrowings
could offset improvements in loan yields and put further pressure on the net
interest margin during the second half of 2006.
<PAGE>

<TABLE>
Table 2:  Quarterly Net Interest Income Analysis - Taxable Equivalent Basis
(dollars in thousands)
<CAPTION>
                                                 Three months ended June 30, 2006         Three months ended June 30, 2005
                                               Average      Interest        Average      Average      Interest       Average
                                               Balance   Income/Expense   Yield/Rate     Balance   Income/Expense   Yield/Rate
<S>                                           <C>            <C>             <C>        <C>             <C>             <C>
ASSETS
Earning Assets
Loans (1) (2) (3)                             $320,854       $6,257          7.80%      $290,554        $4,789          6.59%
Investment securities:
  Taxable                                       56,125          606          4.32%        59,432           595          4.01%
  Tax exempt (2)                                20,681          335          6.47%        21,992           357          6.50%
Other interest earning assets                    6,788           90          5.31%         8,250            94          4.58%
Total earning assets                          $404,448       $7,288          7.21%      $380,228        $5,835          6.14%

Cash and due from banks                        $12,043                                   $12,071
Other assets                                    15,508                                    13,865
Allowance for loan losses                       (3,156)                                   (2,875)
Total assets                                  $428,843                                  $403,289

LIABILITIES AND STOCKHOLDERS' EQUITY
Interest bearing liabilities:
  Interest bearing demand                      $29,985         $161          2.15%       $29,471           $76          1.03%
  Savings deposits                              83,635          650          3.11%        66,719           211          1.26%
  Time deposits                                159,213        1,689          4.24%       147,443         1,063          2.88%
Short-term borrowings                           26,923          310          4.61%        28,584           199          2.78%
FHLB borrowings                                 37,000          359          3.89%        49,000           451          3.68%
Subordinated debenture                          10,310          154          5.96%             0             0
Total interest bearing liabilities            $347,066       $3,323          3.83%      $321,217        $2,000          2.49%

Demand deposits                                 42,588                                    42,515
Other liabilities                                4,143                                     3,437
Stockholders' equity                            35,046                                    36,120
Total liabilities and stockholders' equity    $428,843                                  $403,289

Net interest income and rate spread                          $3,965          3.38%                      $3,835          3.65%
Net interest margin                                                          3.92%                                      4.03%
<FN>
   (1) Non-accrual loans are included in the daily average loan balances outstanding.
   (2) The yield on tax-exempt loans and securities is computed on a tax-equivalent basis using a tax rate of 34%.
   (3) Interest income includes net loan fees.
</TABLE>
<PAGE>

<TABLE>
Table 3:  Year-to-Date Net Interest Income Analysis - Taxable Equivalent Basis
(dollars in thousands)
<CAPTION>
                                                  Six months ended June 30, 2006           Six months ended June 30, 2005
                                                Average       Interest       Average      Average      Interest        Average
                                                Balance   Income/Expense   Yield/Rate     Balance   Income/Expense   Yield/Rate
<S>                                            <C>            <C>             <C>        <C>             <C>            <C>
ASSETS
Earning Assets
Loans (1) (2) (3)                              $317,551       $12,050         7.63%      $286,333         $9,216        6.47%
Investment securities:
  Taxable                                        55,698         1,188         4.29%        57,838          1,161        4.04%
  Tax exempt (2)                                 20,996           680         6.52%        22,229            724        6.55%
Other interest earning assets                     8,121           204         5.05%        15,562            271        3.50%
Total earning assets                           $402,366       $14,122         7.06%      $381,962        $11,372        5.99%

Cash and due from banks                         $11,966                                   $11,933
Other assets                                     15,565                                   $13,863
Allowance for loan losses                        (3,104)                                   (2,868)
Total assets                                   $426,793                                  $404,890

LIABILITIES AND STOCKHOLDERS' EQUITY
Interest bearing liabilities:
  Interest bearing demand                       $30,559          $304         2.00%       $30,648           $139        0.91%
  Savings deposits                               80,706         1,145         2.85%        68,975            389        1.13%
  Time deposits                                 160,262         3,218         4.04%       147,953          2,035        2.77%
Short-term borrowings                            26,257           567         4.34%        25,781            340        2.65%
Long-term borrowings                             37,116           708         3.84%        49,000            896        3.68%
Subordinated debentures                          10,310           307         5.99%             0              0
Total interest bearing liabilities             $345,210        $6,249         3.64%      $322,357         $3,799        2.37%

Demand deposits                                  42,234                                    43,146
Other liabilities                                 3,874                                     3,306
Stockholders' equity                             35,474                                    36,081
Total liabilities and stockholders' equity     $426,792                                  $404,890

Net interest income and rate spread                            $7,873         3.42%                       $7,573        3.62%
Net interest margin                                                           3.95%                                     4.00%
<FN>
   (1) Non-accrual loans are included in the daily average loan balances outstanding.
   (2) The yield on tax-exempt loans and securities is computed on a tax-equivalent basis using a tax rate of 34%.
   (3) Interest income includes net loan fees.
</TABLE>

Provision for Loan Losses

The provision for loan losses is the periodic cost of providing an allowance
for probable incurred losses.  The allowance consists of specific and general
components.  The specific components relate to loans that are individually
classified as impaired loans or loans otherwise classified as substandard or
doubtful.  The general component covers non-classified loans and is based on
historical loss experience adjusted for current factors.  The current factors
include loan growth, net charge-offs, changes in the composition of the loan
portfolio, delinquencies, loan quality of the portfolio and collateral values.
<PAGE>

Management believes that the current provision conforms with Mid-Wisconsin's
allowance for loan loss policy and is adequate in view of the present condition
of Mid-Wisconsin's loan portfolio.  However, should a decline in the quality of
the loan portfolio or significant charge-offs against the allowance occur
higher provisions will need to be made in the future.  The provision for loan
losses for the second quarter 2006 was $124,950 compared to $75,000 for the
comparable time period last year.  Year-to-date the provision for loan losses
was $249,900 compared to $136,600 for the six months ended June 30, 2005.
Loans increased 6.2% in 2006, while the allowance for loan losses as a percent
of total loans remained constant at 0.98% at June 30, 2006 and 0.97% at
December 31, 2005.  See additional discussion relating to nonperforming loans
under section "Allowance for Loan Losses."

Non-interest Income

<TABLE>
Table 4:  Non-interest Income
(dollars in thousands)
<CAPTION>
                                       Three months ended                 Six months ended
                                  June 30,   June 30,   Percent     June 30,   June 30,   Percent
                                    2006       2005     Change         2006       2005    Change
<S>                                 <C>        <C>       <C>         <C>        <C>        <C>
Service fees                        $238       $240       -0.8%        $455       $417       9.1%
Trust service fees                   229        229        0.0%         462        431       7.2%
Investment product commissions        73         61       19.7%         171        111      54.1%
Gains from sale of loans              94         83       13.3%         155        127      22.0%
Bank owned life insurance             29         39      -25.6%          60         58       3.4%
Other operating income               209        172       21.5%         380        474     -19.8%
Total non-interest income           $872       $824        5.8%      $1,683     $1,618       4.0%
</TABLE>

The Trust and Investment department has completed a restructuring process that
was intended to improve services and increase fee income in the future.  The
first part of the process involved implementing a new business strategy based
on client relationships vs. transactional services, which resulted in lower
investment fees during 2005.  Insurance associates were added to concentrate on
the delivery of life, health, long-term care, disability insurance and
annuities.  In the first quarter of 2006, the Trust and Investment Department
transitioned to a new trade name, Mid-Wisconsin Wealth Management.  Also, a new
retail brokerage platform was selected to expand investment options for
customers.  The Bank is beginning to realize the benefits of the restructuring
process as non-interest income generated from this group increased $12,000
during the second quarter 2006 and $91,000 for the first half of 2006 due to
appreciation of the trust portfolio and income derived from the sale of annuity
and life insurance commission products.

Gains from the sales of loans to the secondary market were strong during the
first half of 2006 as fees increased $28,000 or 22.0% over 2005. During the
second half of 2006 this trend is not anticipated to continue as housing starts
and sales of existing homes has slowed and the Bank introduced a new 7
year fixed rate loan product that is intended to keep loans on the books
instead of being sold to the secondary loan market.

Other operating income for 2005 included a gain on sale of stock of $86,000 in
connection with a third-party acquisition of Pulse (an ATM operator/provider)
in which the Bank held an ownership interest.  Also in 2005, the Bank recovered
$20,000 of interest from a loan charged-off in prior years.  The remainder of
the increase in 2006 operating income resulted from increased interchange
income due to the Bank driving its own network of ATMs using software that
interacts directly with the core processing system.
<PAGE>

Mid-Wisconsin rolled out an overdraft protection program during the third
quarter 2006 intended to increase service fees.

Non-interest Expense

As anticipated non-interest expenses due to corporate growth and branching
initiatives will increase the levels of overhead throughout 2006.

<TABLE>
Table 5:  Non-interest Expense
(dollars in thousands)
<CAPTION>
                                       Three months ended                 Six months ended
                                  June 30,   June 30,   Percent     June 30,   June 30,   Percent
                                    2006       2005     Change        2006       2005     Change
<S>                               <C>        <C>        <C>         <C>        <C>        <C>
Salaries and employee benefits    $1,895     $1,608       17.8%     $3,604     $3,157       14.2%
Occupancy                            420        328       28.0%        835        673       24.1%
Data processing and
information systems                  181        122       48.4%        342        239       43.1%
Amortization of intangibles            0         77     -100.0%          0        154     -100.0%
Other operating expenses             629        667       -5.7%      1,301      1,348       -3.5%
Total non-interest expenses       $3,125     $2,802       11.5%     $6,082     $5,571        9.2%
</TABLE>

During 2006, salaries and employee benefits increased steadily as additional
staff was added in the Wealth Management Department, two new full-service bank
branches, and the addition of a holding company CEO.  The number of full-time
equivalent employees increased to 155 at June 30, 2006 from 147 at June 30,
2005.  During the first quarter 2006, a third party independent underwriter was
engaged to evaluate the level of reserves supporting the self-funded health
insurance plan which resulted in a one time reversal of expense of $140,000.
The net effect of this item was an increase in net after tax earnings of
$84,000, or $0.05 per share.

Occupancy expense increased $162,000 during the first half of 2006 compared to
the same period in 2005 as a result of increased depreciation, rent expense,
and utility costs, due in part to the opening of the Rib Mountain branch in
September 2005 and the Minocqua branch in June 2006.  Data processing expense
increased during 2006 due to technology enhancements and upgrades purchased
during 2005 to facilitate product offerings and future branch expansion.
<PAGE>

BALANCE SHEET ANALYSIS

Loans

Growth has been especially robust on the loan front during the first half of
2006 as gross loans grew to $329.6 million at June 30, 2006, a 6.2% increase
from year-end 2005.  Strong loan growth has been exhibited in commercial,
commercial real estate and real estate construction loans.  Although loan
pipelines appear healthy going into the second half of 2006 it appears loan
pricing will be very competitive and the residential real estate loans will
slow down due to fewer housing starts and slow home sales in our markets.

<TABLE>
Table 6:  Period End Loan Composition
(dollars in thousands)
<CAPTION>
                             June 30,   % of   December 31,   % of
                               2006    total       2005      total
<S>                         <C>        <C>      <C>          <C>
Commercial                   $61,641    18.7%    $55,706      18.0%
Commercial real estate       113,799    34.5%    107,920      34.8%
Agricultural                  38,213    11.6%     36,242      11.7%
Real estate construction      16,597     5.0%     14,080       4.5%
Real estate residential       90,291    27.4%     87,900      28.3%
Installment                    9,082     2.7%      8,522       2.7%
Total loans                 $329,623   100.0%   $310,370     100.0%
</TABLE>

Allowance for Loan Losses

The loan portfolio is the primary asset subject to credit risk.  To account for
this risk, Mid-Wisconsin sets aside an allowance for possible loans losses
through periodic charges to earnings.  Credit risk is controlled and monitored
through the use of underwriting procedures, comprehensive loan administration,
and ongoing review of borrowers' outstanding loans and commitments.  Asset
quality administration, including early identification of problem loans and
timely resolution of problems, further enhances management of credit risk and
minimization of loan losses.

The analysis of the allowance for loan losses consists of two components:  (1)
specific credit allocation for expected losses on specifically identified
credits that require a specific reserve; and (2) general portfolio allocation
based on historical loan loss experience for each loan category and adjusted
for economic conditions in the markets Mid-Wisconsin operates.

The specific credit allocation of the allowance for loan losses is based on a
regular analysis of loans over a fixed-dollar amount where the internal credit
rating is at or below a predetermined classification.  The fair value of the
loan is based on discounted cash flows of expected future payments using the
loan's initial effective interest rate or the fair value of the collateral if
the loan is collateral dependent.  The general portfolio allocation component
is determined statistically using an analysis of each loan type's delinquency,
specialty credits and rating codes.  The general portfolio allocation is
performed quarterly and loss factors are updated regularly based on actual
experience.
<PAGE>

The allowance for loan losses at June 30, 2006 was $3.2 million compared to
$3.0 million at the end of 2005.  Mid-Wisconsin has retained strong credit
quality with nonperforming assets to assets of 0.43%.  Net loan charge-offs
during the second quarter were $15,000 and $62,000 year-to-date.

<TABLE>
Table 7:  Loan Loss Experience
(dollars in thousands)
<CAPTION>
                                            June 30,       December 31,
                                         2006      2005        2005
<S>                                     <C>       <C>         <C>
Allowance for loan losses at
beginning of year                       $3,028    $2,820      $2,820
Loans charged off                          (71)      (57)       (177)
Recoveries                                   9        12          43
Provision for loan losses                  250       137         342
Allowance for loan losses at
end of period                           $3,216    $2,912      $3,028
Nonperforming assets
 Nonaccrual loans not
 considered impaired                      $857      $312        $255
 Impaired loans                            442       852         877
 Accruing loans past due 90
 days or more                                8        13          19
 Restructured loans                        554       320         365
Total nonperforming loans                1,861     1,497       1,516
 Other real estate owned                    39         0           0
Total nonperforming assets              $1,900    $1,497      $1,516
RATIOS
Ratio of allowance for loan
losses to net charge offs                 51.9      16.2        22.6
Ratio of allowance for loan
losses to total loans at end of
period                                    0.98%     0.98%       0.97%
Ratio of net charge-offs to
average loans outstanding                 0.02%     0.02%       0.04%
Nonperforming loans to total
Loans                                     0.56%     0.50%       0.49%
Nonperforming assets to total
Assets                                    0.43%     0.37%       0.35%
</TABLE>

In the opinion of management, the allowance for loan losses was adequate as of
June 30, 2006.  While management uses available information to recognize losses
on loans, future adjustments to the allowance for loan losses may be necessary
based on changes in economic conditions and the impact of such changes on
borrowers.
<PAGE>

Nonperforming Loans and Other Real Estate Owned

Nonperforming loans remain a leading indicator of future loan loss potential.
Nonperforming loans are defined as nonaccrual loans, impaired loans, loans 90
days or more past due but still accruing, and restructured loans.
Additionally, whenever management becomes aware of facts that may adversely
impact the collection of principal or interest on loans, it is Mid-Wisconsin's
practice to place such loans on nonaccrual status immediately rather than
waiting until the loans become 90 days past due.  The accrual of interest
income is generally discontinued when a loan becomes 90 days past due as to
principal or interest.  Previously accrued and uncollected interest on such
loans is reversed, and income is recorded only to the extent that interest
payments are subsequently received and principal is collectible.

A loan is impaired when, based on current information, it is probable that
collection of all amounts due in accordance with the original contractual terms
of the loan agreement will not be collected.  Management has determined that
commercial, agricultural, and commercial real estate loans that are in
nonaccrual status or have had restructured terms meet this definition.
Restructured loans involve the granting of concessions to the borrower
involving the modification of terms of the loan, such as changes in payment
schedule or interest rate.

Nonperforming loans increased to $1.9 million at June 30, 2006 from $1.5
million at December 31, 2005.  Nonaccrual loans increased to $857,000 from
year-end due to one commercial loan customer. Impaired loans decreased since
year-end as an agricultural loan was removed from the impaired list as it has
commenced regular payments and a commercial credit was paid-off.  Restructured
loans were $554,000 at June 30, 2006 compared to $365,000 at December 31, 2005.

Other real estate owned, which represents property that Mid-Wisconsin acquired
through foreclosure or in satisfaction of debt, consisted of one residential
property totaling $39,000.

Deposits

Deposits are Mid-Wisconsin's largest source of funds.  At June 30, 2006,
deposits were $329.3 million, up $16.6 million from year-end 2005.  Deposit
growth primarily came from higher cost money market accounts and brokered
deposits.  Brokered deposits totaled $26.2 million at June 30, 2006 and $19.5
million December 31, 2005.  Mid-Wisconsin utilizes brokered deposits to provide
additional funding to meet its liquidity needs.  The brokered deposits were
acquired at funding rates similar to Mid-Wisconsin's own market area.

Mid-Wisconsin's retail deposit growth is continuously influenced by competitive
pressure from other financial institutions, as well as other investment
opportunities available to customers.  Emphasis will be placed on generating
additional core deposits in 2006 through new product offerings, competitive
pricing, and expanding existing relationships, specifically with loan
customers, by cross selling additional deposit products.  Mid-Wisconsin may
also continue to increase brokered deposits during 2006 as an additional source
of funds to provide for loan growth in the event that core deposit growth goals
would not be attained.

Other Funding Sources

Other funding sources including short-term borrowings, Federal Home Loan Bank
("FHLB") borrowings, and subordinated debentures remained constant at $73.7
million at June 30, 2006 from year-end 2005.  Short-term borrowings increased
$6.9 million during 2006.  Due to the Bank's liquidity position $7.0 million of
FHLB borrowings that matured during the first quarter were not renewed.
<PAGE>

In 2005, Mid-Wisconsin Statutory Trust I (the "Trust"), a Delaware Business
Trust subsidiary of Mid-Wisconsin, issued $10,000,000 in trust preferred
securities.  The Trust used the proceeds from the offering along with Mid-
Wisconsin's common ownership investment to purchase $10,310,000 of Mid-
Wisconsin's subordinated debentures (the "debentures").  The trust preferred
securities and the debentures mature on December 15, 2035, and have a fixed
rate of 5.98% until December 15, 2010, after which they will have a floating
rate equal to the three-month LIBOR rate plus 1.43%.

Off-Balance Sheet Obligations

As of June 30, 2006 and December 31, 2005, Mid-Wisconsin has the following
commitments, which do not appear on its balance sheet:

<TABLE>
Table 8: Commitments
<CAPTION>
                                    June 30, 2006   December 31, 2005
<S>                                     <C>               <C>
Commitments to extend credit:
     Fixed rate                         $18,683           $13,080
     Adjustable rate                     28,188            26,859
Standby and irrevocable letters
of credit-fixed rate                      4,474             3,696
Credit Card Commitments                   6,011             6,105
</TABLE>

Contractual Obligations

Mid-Wisconsin is party to various contractual obligations requiring use of
funds as part of its normal operations.  The table below outlines principal
amounts and timing of these obligations, excluding amounts due for interest, if
applicable.  Most of these obligations are routinely refinanced into a similar
replacement obligation.  However, renewal of these obligations is dependent on
Mid-Wisconsin's ability to offer competitive interest rates or availability of
collateral for pledging mortgage loans or securities as in the case of advances
from the FHLB.

<TABLE>
Table 9:  Contractual Obligations
<CAPTION>
                                  Total   < 1year   1-3 years   3-5 years   > 5 years
<S>                             <C>       <C>        <C>          <C>        <C>
Federal Home Loan Bank
borrowings                      $37,000   $19,500    $12,500      $5,000          $0
Subordinated debentures          10,310         0          0           0      10,310
Total contractual obligations   $47,310   $19,500    $12,500      $5,000     $10,310
</TABLE>

Liquidity

Liquidity management refers to the ability to ensure that cash is available in
a timely manner to meet loan demand and depositor's needs and to service
liabilities as they become due, without undue cost or risk.  Mid-Wisconsin and
the Bank have different liquidity considerations.

Mid-Wisconsin's primary sources of funds are dividends from the Bank, and net
proceeds from borrowings and the offerings of subordinated debentures.  Mid-
Wisconsin manages its liquidity position to provide the funds necessary to pay
dividends to its shareholders and to service debt.  Dividends received from the
Bank totaled $250,000 in 2006.
<PAGE>

The Bank meets its cash flow needs by having funding sources available to
satisfy the credit needs of customers as well as having available funds to
satisfy deposit withdrawal requests.  Liquidity is derived from the maturity of
the investment portfolio, maturing loans, loan payments, deposit growth,
borrowings and strong capital position.

Cash payments from the investment portfolio have been a source of liquidity at
the Bank.  Proceeds from maturities totaling $9.9 million were received in
2006.  $12.8 million in investments were purchased during 2006.  This resulted
in a net cash outflow of $2.9 million in 2006.

The scheduled maturity of loans can provide a source of additional liquidity.
Factors affecting liquidity relative to loans are loan renewals, loan
origination volumes, loan prepayment rates, and maturity of existing loan
portfolio.  The Bank's liquidity position is influenced by changes in interest
rates, economic conditions and competition.  Conversely, loan demand as a need
for liquidity may cause Mid-Wisconsin to acquire other sources of funding which
could be more costly than deposits.

Deposit growth is another source of liquidity for the Bank.  Deposits provided
$16.7 million of cash inflow during 2006.  Affecting liquidity are core deposit
growth levels, certificates of deposit maturity structure and retention and
diversification of wholesale funding sources.  Deposit outflow would require
the Bank to develop alternative funding sources which may not be as liquid and
potentially more costly.

Mid-Wisconsin utilizes other funding sources in the form of corporate
repurchase agreements, federal funds purchased, and FHLB advances.  Repurchase
agreements with corporate customers increased to $26.4 million at June 30, 2006
from $19.5 million at year-end 2005.  Federal funds are purchased as needed
from correspondent banks.  FHLB advances totaled $37.0 million at June 30, 2006
and $44.0 million at the end of year 2005.

Management believes the Bank's liquidity resources will be sufficient in 2006
to fund the growth in loans and investments and meet other cash needs when
necessary.

Management expects that deposit growth will continue to be the primary funding
source of the Bank's liquidity on a long-term basis, along with a stable
earnings base, and a strong capital position. Although repurchase agreements
with corporate customers and borrowings from the FHLB provided funds in 2006,
management expects deposit growth, including brokered deposits, to be a
reliable funding source in the future as a result of branch expansion efforts
and marketing efforts to attract and retain core deposits. Shorter-term
liquidity needs will mainly be derived from growth in short-term borrowings,
federal funds sold and portfolio investments, loan maturities and access to
other funding sources.

In assessing liquidity, historical information such as seasonality, local
economic cycles and the economy in general are considered along with the
current ratios, and management goals. Management believes that, in the current
economic environment, the Bank's liquidity position is adequate. To
management's knowledge, there are no known trends nor any known demands,
commitments, events or uncertainties that will result or are reasonably likely
to result in a material increase or decrease in the Bank's liquidity.
<PAGE>

Capital

Stockholders' equity at June 30, 2006 was $34.9 million compared to $37.4
million at December 31, 2005.  The decrease in stockholders' equity in 2006 was
mainly due to the stock tender offer completed in the first quarter, and
payment of dividends with an offsetting increase from the retention of retained
earnings and issuance of common stock.  Cash dividends paid were $0.84 per
share in 2006 and 2005. Stockholders' equity at June 30, 2006 included $1.4
million of accumulated other comprehensive loss, related to unrealized losses
on securities available for sale, net of the tax effect.  At December 31, 2005,
stockholders' equity included $598,000 of accumulated other comprehensive loss
related to unrealized losses on securities.

In October 2005, Mid-Wisconsin formed Mid-Wisconsin Statutory Trust I (the
"Trust") as a statutory business trust organized for the sole purpose of
issuing $10.0 million of trust preferred securities and investing the proceeds
of $10.3 million into subordinated debentures of Mid-Wisconsin, the sole asset
of the Trust.  The trust preferred securities enhanced regulatory capital added
liquidity, and will support future growth of Mid-Wisconsin.  The common
securities of the Trust are wholly-owned by Mid-Wisconsin.

In December 2005, Mid-Wisconsin announced an offer to purchase up to 125,000
shares of its common stock in a tender offer at a price of $36.00 per share.
Mid-Wisconsin made this offer to utilize excess capital, and to provide
liquidity for shareholders.  The offer expired on January 31, 2006.  Mid-
Wisconsin accepted 81,342 shares of its common stock for repurchase.  The
shares repurchased represented approximately 4.77% of the shares outstanding
immediately prior to the tender offer.  Following the purchase of the accepted
shares, 1,622,676 shares of common stock were outstanding.

The adequacy of Mid-Wisconsin's capital is regularly reviewed to ensure that
sufficient capital is available for current and future needs and is in
compliance with regulatory guidelines.  Management feels the capital structure
of Mid-Wisconsin is adequate.  The following are Mid-Wisconsin's risk based
capital ratios for the previous five quarters:

<TABLE>
Table 10:  Mid-Wisconsin Capital Ratios
<CAPTION>
                                  Tier 1 Capital     Total Capital
<S>                                    <C>                 <C>
June 30, 2006                          13.5%               14.4%
March 31, 2006                         14.0%               15.0%
December 31, 2005                      14.8%               15.7%
September 30, 2005                     11.5%               12.4%
June 30, 2005                          11.9%               12.9%

Regulatory minimum requirements         4.0%                8.0%
</TABLE>
<PAGE>

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES
ABOUT MARKET RISK

There was no material change in the information provided in response to Item 7A
of Mid-Wisconsin's Form 10-K for the year ended December 31, 2005.

ITEM 4.  CONTROLS AND PROCEDURES

As of the end of the period covered by this report, management, under the
supervision, and with the participation, of Mid-Wisconsin's President and Chief
Executive Officer and the Chief Accounting Officer, evaluated the effectiveness
of the design and operation of Mid-Wisconsin's disclosure controls and
procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the
Securities Exchange Act of 1934, as amended (the "Exchange Act")) pursuant to
Exchange Act Rule 13a-15.  Based upon, and as of the date of, such evaluation,
the President and Chief Executive Officer and the Chief Accounting Officer
concluded that Mid-Wisconsin's disclosure controls and procedures were
effective.  There was no change in Mid-Wisconsin's internal control over
financial reporting (as such term is defined in Exchange Act Rule 13a-15(f))
during the fiscal quarter covered by this report that materially affected, or
are reasonably likely to materially affect, Mid-Wisconsin's internal control
over financial reporting.

PART II - OTHER INFORMATION

ITEM 1A.  RISK FACTORS

In addition to the other information set forth in this report, this report
should be considered in light of the risk factors discussed in Item 1A.  "Risk
Factors" in Mid-Wisconsin's 2005 Form 10-K, which could materially affect its
business, financial condition, or future results of operations.  The risks
described in the 2005 Form 10-K are not the only risks facing Mid-Wisconsin.
Additional risks and uncertainties not currently known to Mid-Wisconsin or that
it currently deems to be immaterial also may materially adversely affect Mid-
Wisconsin's business, financial condition, and/or operating results.

ITEM 4. SUBMISSIONS OF MATTERS TO VOTE OF SECURITIES HOLDERS

The annual meeting of shareholders of Mid-Wisconsin was held on April 25, 2006.
The matters voted upon, including the number of votes cast for, against,
withheld, as well as the number of abstentions and broker non-votes, as to each
such matter were as follows:
<PAGE>

<TABLE>
<CAPTION>
         MATTER                                                   SHARES
                                                                                     Broker
                                                For    Against  Withheld  Abstain   Non-Vote
<S>                                         <C>          <C>     <C>         <C>        <C>
1  Election of Directors
     Kathryn M. Hemer                       1,078,285    n/a     10,000      n/a        0
     Kurt D. Mertens                        1,087,655    n/a      6,832      n/a        0
     James F. Warsaw                        1,081,456    n/a        630      n/a        0
2  Approval of the appointment of
   independent auditor for the year
   ending December 31, 2006                 1,288,614   2,865    12,013        0        0
</TABLE>

ITEM 6.  EXHIBITS

Exhibits required by Item 601 of Regulation S-K.

Exhibit
Number                      Description

31.1 Certification of CEO pursuant to Section 302 of Sarbanes-Oxley Act of 2002
31.2 Certification of CFO pursuant to Section 302 of Sarbanes-Oxley Act of 2002
32.1 Certification of CEO and CFO pursuant to Section 906 of Sarbanes-Oxley Act
     of 2002


SIGNATURES

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 thereunto duly authorized.

     MID-WISCONSIN FINANCIAL SERVICES, INC.

Date:  AUGUST 15, 2006   JAMES F. WARSAW
                         James F. Warsaw, President and Chief Executive Officer
                         (Principal Executive Officer)


Date:  AUGUST 15, 2006   RHONDA R. KELLEY
                         Rhonda R. Kelley, Controller
                         (Principal Accounting Officer)
<PAGE>

                                 EXHIBIT INDEX
                                      to
                                   FORM 10-Q
                                      of
                     MID-WISCONSIN FINANCIAL SERVICES, INC.
                  for the quarterly period ended June 30, 2006
                  Pursuant to Section 102(d) of Regulation S-T
                       (17 C.F.R. <section>232.102(d))



The following exhibits are filed as part this report:

31.1 Certification of CEO pursuant to Section 302 of Sarbanes-Oxley Act of 2002
31.2 Certification of CFO pursuant to Section 302 of Sarbanes-Oxley Act of 2002
32.1 Certification of CEO and CFO pursuant to Section 906 of Sarbanes-Oxley Act
     of 2002