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 September 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 [ ]

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

As of November 1, 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
                   September 30, 2006 and December 31, 2005                3

                   Consolidated Statements of Income
                   Three Months Ended September 30, 2006 and 2005
                   And Nine Months Ended September 30, 2006 and 2005       4

                   Consolidated Statements of Changes in
                   Stockholders' Equity
                   Nine Months Ended September 30, 2006                    5

                   Consolidated Statements of Cash Flows
                   Nine Months Ended September 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                              8-24


         Item 3.   Quantitative and Qualitative Disclosures
                   About Market Risk                                      25


         Item 4.   Controls and Procedures                                25

PART II  OTHER INFORMATION

         Item 1A.  Risk Factors                                           25

         Item 6.   Exhibits                                               26

                   Signatures                                             26

                   Exhibit Index                                          26
<PAGE>


PART I - FINANCIAL INFORMATION

ITEM 1.  Financial Statements:

<TABLE>
                           Mid-Wisconsin Financial Services, Inc.
                                     and Subsidiary
                              Consolidated Balance Sheets
<CAPTION>
                                                         September 30, 2006       December 31, 2005
                                                             (Unaudited)              (Audited)
<S>                                                          <C>                     <C>
ASSETS
Cash and due from banks                                       $11,748,997             $14,241,926
Interest-bearing deposits in other financial institutions          16,150                  19,596
Federal funds sold                                              5,230,309               9,133,605
Securities available for sale - at fair value                  80,510,386              76,822,771
Loans held for sale                                               197,599                 318,900
Loans receivable, net of allowance of
  $3,458,639 in 2006 and $3,028,048 in 2005                   338,504,891             307,342,034
Accrued interest receivable                                     2,372,251               1,928,159
Premises and equipment, net                                     9,136,257               9,026,908
Goodwill                                                          295,316                 295,316
Other investments - at cost                                     2,742,633               2,971,574
Other assets                                                    5,604,026               5,288,629
TOTAL ASSETS                                                 $456,358,815            $427,389,418
LIABILITIES AND STOCKHOLDERS' EQUITY
Non-interest-bearing deposits                                 $53,557,159             $46,372,791
Interest-bearing deposits                                     305,040,575             266,280,540
  Total deposits                                              358,597,734             312,653,331
Short-term borrowings                                          15,237,606              19,543,617
Federal Home Loan Bank borrowings                              32,500,000              44,000,000
Subordinated debentures                                        10,310,000              10,310,000
Accrued interest payable                                        1,859,116               1,720,055
Accrued expenses and other liabilities                          1,633,950               1,789,674
Total liabilities                                             420,138,406             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 September 30, 2006 and 1,704,018
   shares at December 31, 2005                                    163,868                 170,402
Additional paid-in capital                                     11,603,362              11,564,740
Retained earnings                                              25,054,060              26,235,828
Accumulated other comprehensive loss                             (600,880)               (598,229)
Total stockholders' equity                                     36,220,410              37,372,741
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                   $456,358,815            $427,389,418

   Book Value Per Share                                            $22.10                  $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                        Nine Months Ended
                                            September 30, 2006   September 30, 2005   September 30, 2006   September 30, 2005
<S>                                              <C>                  <C>                 <C>                  <C>
Interest and dividend income:
  Loans, including fees                          $6,743,694           $5,354,780          $18,773,723          $14,552,200
  Securities
     Taxable                                        638,639              577,232           1,826,133             1,737,985
     Tax-exempt                                     224,588              231,307             673,925               709,691
  Other interest and dividend income                137,145               91,193             340,758               362,014
Total interest and dividend income                7,744,066            6,254,512          21,614,539            17,361,890
Interest expense:
  Deposits                                        3,131,380            1,619,739           7,798,626             4,183,198
  Short-term borrowings                             170,893              257,972             738,202               597,883
  Federal Home Loan Bank borrowings                 375,197              455,490           1,082,767             1,351,616
  Subordinated debentures                           153,567                    0             460,702                     0
Total interest expense                            3,831,037            2,333,201          10,080,297             6,132,697
Net interest income                               3,913,029            3,921,311          11,534,242            11,229,193
Provision for loan losses                           133,300              115,000             383,200               251,600
Net interest income after provision
  for loan losses                                 3,779,729            3,806,311          11,151,042            10,977,593
Non-interest income:
  Service fees                                      316,898              247,946             771,997               664,557
  Trust service fees                                222,842              243,317             684,832               674,267
  Investment product commissions                     85,899               67,628             256,746               178,176
  Other operating income                            234,445              300,801             829,826               960,532
Total non-interest income                           860,084              859,692           2,543,401             2,477,532
Non-interest expenses:
  Salaries and employee benefits                  1,963,932            1,682,061           5,568,500             4,838,935
  Occupancy                                         437,083              345,578           1,272,048             1,018,619
  Data processing and information systems           182,663              132,782             524,220               372,055
  Purchased core deposit amortization                     0               77,158                   0               231,474
  Other operating expenses                          695,960              621,217           1,997,368             1,968,917
Total non-interest expenses                       3,279,638            2,858,796           9,362,136             8,430,000
Income before provision for income taxes          1,360,175            1,807,207           4,332,307             5,025,125
Provision for income taxes                          438,394              663,028           1,409,213             1,699,051
Net income                                         $921,781           $1,144,179          $2,923,094            $3,326,074
Basic earnings per share                              $0.56                $0.67               $1.77                 $1.95
Diluted earnings per share                            $0.56                $0.67               $1.77                 $1.95
Cash dividends declared per share                     $0.22                $0.22               $1.06                 $1.06
<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
                                       September 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                                                                        2,923,094                      2,923,094
  Other comprehensive loss                                                                           (2,651)          (2,651)
    Total comprehensive income                                                                                     2,920,443
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                                               16,534                                         16,534
Cash dividends paid, $1.06 per share                               (1,736,996)                                    (1,736,996)
Balance, September 30, 2006            1,638,676     $163,868     $11,603,362     $25,054,060     $(600,880)     $36,220,410
<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>
                                                                     Nine months ended
                                                           September 30, 2006   September 30, 2005
<S>                                                             <C>                  <C>
Increase (decrease) in cash and due from banks:
  Cash flows from operating activities:
     Net income                                                 $2,923,094           $3,326,074
     Adjustments to reconcile net income to net cash
       provided by operating activities:
        Provision for depreciation and net amortization            618,786              720,770
        Provision for loan losses                                  383,200              251,600
        Loss on premises and equipment disposals                    10,396               11,726
        Loss on foreclosed real estate                              14,000                    0
        Federal Home Loan Bank stock dividends                           0             (101,600)
        Stock-based compensation                                    16,534                8,058
        Changes in operating assets and liabilities:
        Loans held for sale                                        121,301             (227,880)
        Other assets                                              (735,436)            (206,034)
        Other liabilities                                          (16,664)            (324,615)
  Net cash provided by operating activities                      3,335,211            3,458,099
</TABLE>
<PAGE>

ITEM 1.  Financial Statements Continued:

<TABLE>
                                      Mid-Wisconsin Financial Services, Inc.
                                                and Subsidiary
                                      Consolidated Statements of Cash Flows
                                                  (Unaudited)
<CAPTION>
                                                                                       Nine months ended
                                                                        September 30, 2006            September 30, 2005
<S>                                                                         <C>                           <C>
Cash flows from investing activities:
  Net (increase) decrease in interest-bearing deposits in other
  financial institutions                                                          3,446                      (499,041)
  Net decrease in federal funds sold                                          3,903,296                    18,571,445
  Securities available for sale:
    Proceeds from maturities                                                 14,206,690                    16,427,225
    Payment for purchases                                                   (17,875,295)                  (16,934,624)
  Federal Home Loan Bank stock redemption                                       228,941                             0
  Net increase in loans                                                     (31,585,057)                  (27,541,849)
  Capital expenditures                                                         (759,245)                   (3,018,000)
  Proceeds from sale of premises and equipment                                        0                           718
  Proceeds from sale of other real estate                                             0                        30,965
 Net cash used in investing activities                                      (31,877,224)                  (12,963,161)

 Cash flows from financing activities:
   Net increase (decrease) in deposits                                       45,944,403                    (7,840,145)
   Net increase (decrease) in short-term borrowing                           (4,306,011)                   20,335,502
   Principal payments on Federal Home Loan Bank borrowings                  (16,000,000)                            0
   Proceeds from Federal Home Loan Bank borrowings                            4,500,000                             0
   Issuance of common stock                                                     576,000                             0
   Payment for repurchase of common stock                                    (2,928,312)                            0
   Cash dividends paid                                                       (1,736,996)                   (1,805,792)
  Net cash provided by financing activities                                  26,049,084                    10,689,565

Net increase (decrease) in cash and due from banks                           (2,492,929)                    1,184,503
Cash and due from banks at beginning                                         14,241,926                    12,566,937
Cash and due from banks at end                                              $11,748,997                   $13,751,440
  Supplemental cash flow information:
    Cash paid during the year for:
      Interest                                                               $9,941,236                    $5,889,124
      Income taxes                                                           $1,400,000                    $1,992,148
  Noncash investing and financing activities:
       Loans transferred to other real estate                                   $39,000                       $56,216
       Loans charged off                                                        $74,155                      $103,511
       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       Nine Months Ended
                                                       September 30,           September 30,
                                                     2006        2005         2006         2005
                                                       (In thousands, except per share data)
<S>                                                <C>         <C>          <C>          <C>
Net income available to common stockholders         $922       $1,144       $2,923       $3,326
Weighted average shares outstanding                1,644        1,704        1,650        1,704
Effect of dilutive stock options outstanding           5            2            4            2
Diluted weighted average shares outstanding        1,649        1,706        1,654        1,706
Basic earnings per common share                    $0.56        $0.67        $1.77        $1.95
Diluted earnings per common share                  $0.56        $0.67        $1.77        $1.95
</TABLE>
<PAGE>

Note 3 - Loan Composition

<TABLE>
<CAPTION>
                           September 30,   % of   December 31,   % of
                               2006        total      2005       total
                                        (dollars in thousands)
<S>                          <C>          <C>       <C>         <C>
Commercial                    $56,211      16.4%     $55,706     18.0%
Commercial real estate        119,882      35.1%     107,920     34.8%
Agricultural                   42,524      12.4%      36,242     11.7%
Real estate construction       18,525       5.4%      14,080      4.5%
Real estate residential        95,462      27.9%      87,900     28.3%
Installment                     9,359       2.8%       8,522      2.7%
Total loans                  $341,963     100.0%    $310,370    100.0%
</TABLE>

Note 4 - Deposit Composition

<TABLE>
<CAPTION>
                                 September 30,    % of   December 31,   % of
                                      2006        total      2005       total
                                             (dollars in thousands)
<S>                                <C>           <C>       <C>         <C>
Non-interest bearing demand         $53,557       14.9%     $46,373     14.8%
Interest-bearing demand              27,967        7.8%      30,016      9.6%
Savings deposits                    103,927       29.0%      73,840     23.6%
Time deposits                       146,913       41.0%     142,924     45.7%
Brokered deposits                    26,234        7.3%      19,500      6.3%
Total                              $358,598      100.0%    $312,653    100.0%
</TABLE>

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 nine months ended
September 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.
<PAGE>

Forward-looking statements made in this document 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, is a critical accounting policy.

Allowance for Loan Losses
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 September 30, 2006 results in management's
conclusion that the allowance is 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.
<PAGE>

New Accounting Pronouncements
In June 2006, the FASB issued FASB Interpretation No. 48 "Accounting for
Uncertainty in Income Taxes-an interpretation of FASB Statement No. 109"
("FIN48"). The new statement clarifies the accounting for uncertainty in income
taxes recognized in the consolidated financial statements in accordance with
SFAS No. 109, "Accounting for Income Taxes". This Interpretation prescribes the
recognition threshold and measurement for the recognition in the financial
statements of a tax position taken or expected to be taken in a tax return. FIN
48 clarifies that an enterprise should recognize the financial statement
effects of a tax position when that position will more likely than not be
sustained by a tax authority upon examination. We are in the process of
evaluating the impact of this new pronouncement on our consolidated financial
statements for 2006.

Results of Operations - Highlights in the Quarter

Mid-Wisconsin Financial Services, Inc. reported 2006 third quarter net income
of $922,000, or $0.56 per diluted share, compared to $1.1 million, or $0.67 per
diluted share for the third quarter of 2005.  Net income was $2.9 million or
$1.77 per diluted share for the nine months ended September 30, 2006 compared
to $3.3 million or $1.95 per fully diluted share for the same period in 2005.

Key factors affecting the current quarter results were:

   O  Average loans for the third quarter of 2006 increased to $336.1
      million or 9.6% above the average for the third quarter of 2005.  Average
      loans for the nine month period ended September 30, 2006 were $323.8
      million an increase of 10.4% over the comparable 2005 figure.

   O  Average deposits for the third quarter of 2006 were $346.8 million
      or an increase of 17.1% over the related 2005 third quarter amount. The
      increase was primarily in the higher cost Premier Money Market savings
      which averaged $42.3 million for the third quarter in 2006 compared to
      $.3 million for the related quarter in 2005.  Year-to-date average
      deposits of $324.9 million as of September 30, 2006 increased $32.3
      million compared to the related nine-month period of 2005 due to growth
      in higher yielding time deposits and in the Premier Money Market account.

   O  The overall rate earned on interest-earning assets was 7.36% for
      the third quarter of 2006 compared with 6.44% earned in the comparable
      third quarter of 2005.  While the overall rate earned on interest-earning
      assets increased .92% in the three-month quarterly comparison, the
      overall rate paid on interest-bearing liabilities increased 1.38% during
      the same period. For the first nine months of 2006, the overall rate
      earned on interest-earning assets was 7.18% versus the 6.15% recorded in
      the related 2005 period. This increase of 1.13% in the yield on interest-
      earning assets was offset by a 1.32% increase in the overall rate paid on
      interest-bearing liabilities in a nine-month comparison of rates.

   O  On a taxable-equivalent basis, net interest income of $4.0 million
      for the third quarter of 2006 was the same as that earned in the third
      quarter of 2005. The increase in interest income for the quarter due to
      positive loan rate and volume variances was offset by the increased rates
      paid on deposits and growth in higher cost deposit accounts. Net interest
      income on a taxable-equivalent basis was $11.9 million for the nine
      months ended September 30, 2006, an increase of $.3 million compared to
      the related 2005 period.
<PAGE>

   O  Loan quality remained strong as the Company had net recoveries of
      $.1 million for the third quarter of 2006.  On a year-to-date basis, net
      recoveries of $48,000 were recorded in 2006 compared with net charge-offs
      of $64,000 for the nine months of 2005.

   O  Non-interest expense of $3.3 million for the third quarter of 2006
      increased $.4 million over the comparable 2005 third quarter amount.  The
      increase was primarily due to additional costs related to branch
      expansion and information technology expenses.  For the nine months ended
      September 30, 2006, non-interest expense was $9.4 million compared with
      $8.4 in the related 2005 period.  This increase was attributable to
      higher salaries and benefits due to additional staffing, additional
      occupancy costs and higher information technology expenses.
<PAGE>

The following Table 1 presents quarterly summary results of operations.

<TABLE>
Table 1: Summary Results of Operations
(dollars in thousands, except per share data)
<CAPTION>
                                                                      Quarter Ended
                                              September 30,   June 30,   March 31,   December 31,   September 30,
                                                   2006         2006        2006          2005           2005
<S>                                            <C>           <C>         <C>          <C>            <C>
Results of operations:
Interest income                                  $7,744        $7,162      $6,709       $6,588         $6,255
Interest expense                                  3,831         3,323       2,927        2,648          2,334
Net interest income                               3,913         3,839       3,782        3,940          3,921
Provision for loan losses                           133           125         125           90            115
Net interest income after
provision for loan losses                         3,780         3,714       3,657        3,850          3,806
Non-interest income                                 860           872         811          834            860
Non-interest expenses                             3,280         3,125       2,957        3,046          2,859
Income before provision for
income taxes                                      1,360         1,461       1,511        1,638          1,807
Provision for income taxes                          438           476         495          576            663
Net income                                         $922          $985      $1,016       $1,062         $1,144

Return on average assets                           0.82%         0.92%       0.96%        1.01%          1.10%
Return on average equity                          10.45%        11.24%      11.32%       11.51%         12.48%
Equity to assets                                   7.81%         8.11%       8.39%        8.67%          8.71%
Net interest margin                                3.78%         3.92%       3.90%        4.08%          4.12%
Average Balance Sheet
Loans net of unearned income                   $336,119      $320,854    $314,212     $312,358       $303,744
Assets                                          448,084       428,843     424,717      422,381        417,692
Deposits                                        346,786       315,421     312,082      304,246        296,241
Short-term borrowings                            17,330        26,923      25,584       22,559         32,311
Federal Home Loan Bank borrowings                34,359        37,000      37,233       46,065         49,000
Stockholders' equity                             35,286        35,046      35,906       36,909         36,662
Ending Balance Sheet
Loans net of unearned income                   $341,964      $329,623    $314,916     $310,370       $311,604
Assets                                          456,359       441,187     424,504      427,389        423,866
Deposits                                        358,598       329,322     315,279      312,653        295,547
Federal Home Loan Bank borrowings                32,500        37,000      37,000       44,000         49,000
Subordinated debentures                          10,310        10,310      10,310       10,310              0
Stockholders' equity                             36,220        34,893      35,321       37,373         36,963
Financial Condition Analysis
Total risk-based capital                          14.26%        14.43%      14.98%      12.59%          12.44%
Net charge-offs to average loans                   0.00%         0.00%       0.01%       0.02%           0.01%
Nonperforming assets to gross loans                0.53%         0.58%       0.61%       0.49%           0.72%
Efficiency ratio                                  66.94%        64.60%      62.68%      62.18%          58.26%
Net interest income to average assets              0.87%         0.90%       0.89%       0.93%           0.94%
Non-interest income to average assets              0.19%         0.20%       0.19%       0.20%           0.21%
Non-interest expenses to average assets            0.73%         0.73%       0.70%       0.71%           0.67%
Stockholders' Data
Basic and diluted earnings per share              $0.56         $0.60       $0.61       $0.62           $0.67
Book value per share                             $22.10        $21.29      $21.55      $21.93          $21.70
Dividends per share                               $0.22         $0.62       $0.22       $0.22           $0.22
Dividend payout ratio                              39.1%        103.1%       35.5%       35.3%           32.8%
Average common shares outstanding-basic           1,639         1,639       1,662       1,704           1,704
Average common shares outstanding-diluted         1,644         1,642       1,665       1,706           1,706
Stock Price Information
High                                             $38.25        $36.50      $37.00      $35.40          $34.00
Low                                               36.00         36.00       35.40       32.90           33.00
Market price at quarter end (1)                   37.75         36.00       36.50       35.40           33.00
<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.

<TABLE>
Table 2:  Quarterly Net Interest Income Analysis - Taxable Equivalent Basis
(dollars in thousands)
<CAPTION>
                                               Three months ended September 30, 2006    Three months ended September 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)                              $336,119         $6,754        7.97%     $306,699        $5,362        6.94%
Investment securities:
  Taxable                                        57,188            639        4.43%       57,081           577        4.01%
  Tax exempt (2)                                 20,995            340        6.43%       21,593           350        6.44%
Other interest earning assets                     9,930            137        5.48%        7,539            91        4.80%
Total earning assets                           $424,232         $7,870        7.36%     $392,912        $6,380        6.44%

Cash and due from banks                         $11,362                                  $12,698
Other assets                                     15,800                                  $15,037
Allowance for loan losses                        (3,310)                                  (2,955)
Total assets                                   $448,084                                 $417,692

LIABILITIES AND STOCKHOLDERS' EQUITY
Interest bearing liabilities:
  Interest bearing demand                       $30,551           $183       2.38%       $29,045           $93        1.26%
  Savings deposits                               94,246            848       3.57%        63,348           236        1.48%
  Time deposits                                 178,550          2,100       4.67%       159,781         1,291        3.21%
Short-term borrowings                            17,330            171       3.91%        32,311           258        3.17%
Long-term borrowings                             34,359            375       4.33%        49,000           455        3.69%
Subordinated debenture                           10,310            154       5.98%             0             0        0.00%
Total interest bearing liabilities             $365,346         $3,831       4.16%      $333,485        $2,333        2.78%

Demand deposits                                  43,439                                   44,066
Other liabilities                                 4,013                                    3,479
Stockholders' equity                             35,286                                   36,662
Total liabilities and stockholders' equity     $448,084                                 $417,692

Net interest income and rate spread                             $4,039       3.20%                      $4,047       3.66%
Net interest margin                                                          3.78%                                   4.09%
<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:  Quarterly Interest Income and Expense Volume and Rate Analysis
(dollars in thousands)
<CAPTION>
                                           2006 compared to 2005
                                         Increase (Decrease) Due to
                                      Volume          Rate         Net
<S>                                     <C>           <C>        <C>
Interest Income:
  Loans                                 $515          $879       $1,393
Investment securities:
  Taxable                                  1            60           62
  Tax exempt                             (10)           (1)         (10)
Other interest income                     29            17           46
Total earning assets                     535           956        1,490

Interest Expense:
  Interest bearing demand                  5            86           91
  Savings deposits                       115           497          612
  Time deposits                          152           657          809
  Short-term borrowings                 (120)           32          (87)
  Long-term borrowings                  (136)           55          (80)
  Subordinated debentures                  0           154          154
Total interest-bearing liabilities        16         1,481        1,498
Net Interest Income                     $519         $(525)         $(8)
</TABLE>

For the three month periods ended September 30, 2006 and 2005, net interest
income on a taxable-equivalent basis was $4.0 million. The change in net
interest margin due to increased loan rates and volume was offset by the added
volume and higher cost of deposits incurred during the period and an
unfavorable yield curve.  The net interest margin percentage for the three
months ended September 30, 2006 decreased to 3.78% from 4.09% for the
comparable 2005 period.
<PAGE>

<TABLE>
Table 4:  Year-to-Date Net Interest Income Analysis - Taxable Equivalent Basis
(dollars in thousands)
<CAPTION>
                                                      Nine months ended September 30, 2006   Nine months ended September 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)                                   $323,809        $18,805         7.76%   $293,196        $14,576         6.65%
Investment securities:
  Taxable                                             56,200          1,826         4.34%     57,583          1,738         4.04%
  Tax exempt (2)                                      20,996          1,020         6.49%     22,014          1,076         6.53%
Other interest earning assets                          8,731            341         5.22%     12,859            362         3.76%
Total earning assets                                $409,736        $21,991         7.18%   $385,652        $17,752         6.15%

Cash and due from banks                              $11,763                                 $12,191
Other assets                                          15,643                                 $14,259
Allowance for loan losses                             (3,174)                                 (2,897)
Total assets                                        $433,968                                $409,205

LIABILITIES AND STOCKHOLDERS' EQUITY
Interest bearing liabilities:
  Interest bearing demand                            $30,556          $487          2.13%    $30,108           $232         1.03%
  Savings deposits                                    85,269         1,993          3.12%     67,079            625         1.25%
  Time deposits                                      166,425         5,318          4.27%    151,939          3,326         2.93%
Short-term borrowings                                 23,249           738          4.24%     27,982            598         2.86%
Long-term borrowings                                  36,187         1,083          4.00%     49,000          1,352         3.69%
Subordinated debentures                               10,310           461          5.98%          0              0
Total interest bearing liabilities                  $351,996       $10,080          3.83%   $326,108         $6,133         2.51%

Demand deposits                                       42,640                                  43,456
Other liabilities                                      3,921                                   3,364
Stockholders' equity                                  35,411                                  36,277
Total liabilities and stockholders' equity          $433,968                                $409,205

Net interest income and rate spread                                $11,911          3.35%                   $11,619         3.64%
Net interest margin                                                                 3.89%                                   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 5:  Year-to-Date Interest Income and Expense Volume and Rate Analysis
(dollars in thousands)
<CAPTION>
                                          2006 compared to 2005
                                        Increase (Decrease) Due to
                                       Volume       Rate        Net
<S>                                    <C>         <C>         <C>
Interest Income:
  Loans                                $1,523      $2,706      $4,229
Investment securities:
  Taxable                                 (42)        129          88
  Tax exempt                              (49)         (7)        (56)
Other interest income                    (116)         95         (21)
Total earning assets                    1,316       2,924       4,239

Interest Expense:
  Interest bearing demand                  $4        $251        $255
  Savings deposits                        170       1,198       1,368
  Time deposits                           317       1,675       1,992
  Short-term borrowings                  (101)        241         140
  Long-term borrowings                   (354)         85        (269)
  Subordinated debentures                   0         461         461
Total interest-bearing liabilities         36       3,912       3,947
Net Interest Income                    $1,280       $(988)       $292
</TABLE>

For the nine months ended September 30, 2006 and 2005, net interest income grew
$.3 million to $11.9 million or 2.5% above the prior year figure. Average
interest-earning assets increased 6.2% between periods due to higher loan
growth which was partially offset by a reduction in the investment portfolio
balances. Average loans for the nine months ended September 30, 2006 were
$323.8 million or a 10.4% increase over the related 2005 balance of $293.2
million. While volumes have increased, loan pricing pressures have decreased
the spread on new and existing loans. Average deposits for the first nine
months of 2006 increased $32.3 million to $324.9 million compared with $292.6
million for the comparable 2005 figure. Also, deposits migrated from lower cost
savings deposits and transaction accounts into higher yielding accounts. The
balance in the higher yielding Premier Money Market account has grown to $52
million at September 30, 2006 compared with $4 million at September 30, 2005.
Interest related to the issuance of Trust Preferred Subordinated Debentures
also increased the overall rate paid on interest-bearing liabilities. For the
nine months ended September 30, 2006 and 2005, the overall net interest margin
was 3.89% and 4.03%, respectively.

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 to 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 third quarter 2006 was $133,000 compared to $115,000 for the
comparable period last year.  The year-to-date provision for loan losses was
$383,000 compared to $252,000 for the nine months ended September 30, 2005.
The allowance for loan losses to total loans increased slightly to 1.01% at
September 30, 2006 compared with 0.98% at June 30, 2006 and 0.99% at September
30, 2005.  See additional discussion relating to nonperforming loans under
section "Allowance for Loan Losses."

Non-interest Income

<TABLE>
Table 6:  Non-interest Income
(dollars in thousands)
<CAPTION>
                                                Three months ended                     Nine months ended
                                     September 30,   September 30,   Percent   September 30,   September 30,   Percent
                                          2006            2005       Change         2006            2005       Change
<S>                                       <C>             <C>         <C>         <C>             <C>           <C>
Service fees                              $317            $248         27.8%        $772            $665         16.1%
Trust service fees                         223             243         -8.2%         684             674          1.5%
Investment product commissions              86              68         26.5%         257             178         44.4%
Gains from sale of loans                    35              97        -63.9%         190             224        -15.2%
Bank owned life insurance                   19              22        -13.6%          79              80         -1.3%
Other operating income                     180             182         -1.1%         561             657        -14.6%
Total noninterest income                  $860            $860          0.0%      $2,543          $2,478          2.6%
</TABLE>

Service fees have increased $69,000 during the third quarter 2006 compared to
third quarter 2005 due to the introduction of a new overdraft protection
program in July 2006.

The Trust and Investment department completed a restructuring process which
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.  Non-interest income
generated from this group remained approximately the same in a comparison of
third quarter revenue amounts for 2006 and 2005, and increased $89,000 during
2006 on a year-to-date basis over the comparable 2005 figure due to
appreciation of the trust portfolio and additional income derived from the sale
of annuity and life insurance commission products.

Housing starts and sales of existing homes has slowed during 2006.  The Bank
has realized a decrease in fees from the sale of real estate loans to the
secondary market for the third quarter 2006 and year-to-date.
<PAGE>

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.

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 7:  Non-interest Expense
(dollars in thousands)
<CAPTION>
                                             Three months ended                     Nine months ended
                                  September 30,  September 30,  Percent  September 30,  September 30,     Percent
(dollars in thousands)                 2006           2005      Change        2006           2005         Change
<S>                                  <C>             <C>        <C>          <C>            <C>           <C>
Salaries and employee benefits       $1,964          $1,682       16.8%      $5,569         $4,839          15.1%
Occupancy                               437             346       26.3%       1,272          1,019          24.8%
Data processing and
information systems                     183             133       37.6%         524            372          40.9%
Amortization of intangibles               0              77     -100.0%           0            231        -100.0%
Other operating expenses                696             621       12.1%       1,997          1,969           1.4%
Total noninterest expenses           $3,280          $2,859       14.7%      $9,362         $8,430          11.1%
</TABLE>

During 2006, salaries and employee benefits increased as additional staff was
added in the Wealth Management Department, two new full-service bank branches
were fully staffed, and a holding company CEO was added.  The number of full-
time equivalent employees increased to 179 at September 30, 2006 from 147 at
September 30, 2005.  During the first quarter 2006, the level of reserves
supporting the self-funded health insurance plan was decreased 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 $253,000 during 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 to facilitate product
offerings and future branch expansion.
<PAGE>

BALANCE SHEET ANALYSIS

Loans

The growth in loans at September 30, 2006 of $31.6 million or 10.2% since year-
end 2005 has been exhibited primarily in the commercial real estate, real
estate construction and agricultural loan categories. Residential real estate
balances have also increased during the same nine month period comparison due
to the introduction of a seven-year fixed rate product and a reduction of sales
of mortgages to the secondary market. Although commercial and commercial real
estate pipelines appear healthy for the fourth quarter, competitive pricing
pressures have narrowed rates and spreads thereby adding pressure on the
overall net interest margin. Repricing of loans has resulted in more fixed rate
loans compared with the variable rate loans recorded in the past which has
impacted the overall interest sensitivity of Mid-Wisconsin. Finally, the growth
in residential real estate loans is expected to slow due to fewer housing
starts and fewer home sales in our markets.

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 loan 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.

The allowance for loan losses at September 30, 2006 was $3.5 million compared
to $3.0 million at December 31, 2005.
<PAGE>

<TABLE>
Table 8:  Loan Loss Experience
(dollars in thousands)
<CAPTION>
                                          September 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                         (74)       (104)             (177)
Recoveries                                122          40                43
Provision for loan losses                 383         252               342
Allowance for loan losses at
end of period                          $3,459      $3,008            $3,028
Nonperforming assets
  Nonaccrual loans not
  considered impaired                  $1,072      $1,071              $255
  Impaired loans                          145         745               877
  Accruing loans past due 90
  days or more                             21          22                19
  Restructured loans                      548         370               365
Total nonperforming loans               1,786       2,208             1,516
  Other real estate owned                  25          56                 0
Total nonperforming assets             $1,811      $2,264            $1,516
RATIOS
Ratio of allowance for loan
losses to net charge offs                 0.0        30.0              22.6
Ratio of allowance for loan
losses to total loans at end of
period      1                             .01%        0.99%            0.97%
Ratio of net charge-offs to
average loans outstanding               -0.01%        0.03%            0.04%
Nonperforming loans to total
loans                                    0.52%        0.65%            0.49%
Nonperforming assets to total
assets                                   0.40%        0.47%            0.35%
</TABLE>

In the opinion of management, the allowance for loan losses was adequate as of
September 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 decreased to $1.8 million compared to $1.9 million at June
30, 2006 and $2.2 million at September 30, 2005.  Nonaccrual loans were $1.1
million at September 30, 2006 and 2005 compared with $.9 million at June 30,
2006. Impaired loans decreased $.3 million during the quarter and were $.6
million less than the September 30, 2005 figure. Restructured loans remained
approximately the same at $.6 million at September 30 and June 30, 2006. The
ratio of non-performing loans to total loans improved to .52% at September 30,
2006 compared with .56% at June 30, 2006 and .65% at September 30, 2005 as
credit quality remained strong.

Deposits

Deposits are Mid-Wisconsin's largest source of funds and have funded the loan
growth experienced during 2006.  At September 30, 2006, deposits were $358.6
million, up $45.9 million from year-end 2005.  Average deposits for the
quarters ended September 30, 2006 and 2005 were $346.8 million and $296.2
million, respectively.  Deposit growth primarily came from the higher cost
Premier Money Market accounts and an increase in time deposits. The opening of
the branches in Minocqua and Wausau as well as existing markets have all
contributed towards the increase in deposits.

<TABLE>
Table 9:  Average Deposit Composition
(dollars in thousands)
<CAPTION>
                                       Three Months Ended                            Nine Months Ended
                                 September 30,   September 30,                 September 30,   September 30,
                                      2006            2005       Change             2006            2005       Change
<S>                                <C>             <C>         <C>               <C>             <C>          <C>
Non-interest bearing demand         $43,439         $44,066      $(627)           $42,640         $43,456       $(816)
Interest-bearing demand              30,551          29,045      1,506             30,556          30,108         448
Savings deposits                     94,247          63,349     30,898             85,269          67,079      18,190
Time deposits                       152,315         140,356     11,959            145,169         136,494       8,675
Brokered deposits                    26,234          19,425      6,809             21,256          15,445       5,811
Total                              $346,786        $296,241    $50,545           $324,890        $292,582     $32,308
</TABLE>

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 continues to be placed on
generating additional core deposits through new product offerings 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.
<PAGE>

Other Funding Sources

Other funding sources including short-term borrowings, Federal Home Loan Bank
("FHLB") borrowings, and subordinated debentures decreased $15.8 million to
$58.0 million at September 30, 2006 compared to $73.8 million at year-end 2005.
Due to the Bank's liquidity position and the overall increase in core deposit
growth, $11.5 million of FHLB borrowings were not renewed.

In 2005, Mid-Wisconsin Statutory Trust I (the "Trust"), a Delaware Business
Trust subsidiary of Mid-Wisconsin, issued $10.0 million in trust preferred
securities.  The Trust used the proceeds from the offering along with Mid-
Wisconsin's common ownership investment to purchase $10.3 million 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 September 30, 2006 and December 31, 2005, Mid-Wisconsin has the following
commitments, which do not appear on its balance sheet:

<TABLE>
Table 10: Commitments
(dollars in thousands)
<CAPTION>
                                 September 30, 2006   December 31, 2005
<S>                                    <C>                 <C>
Commitments to extend credit:
     Fixed rate                        $18,446             $13,080
     Adjustable rate                    27,268              26,859
Standby and irrevocable letters
of credit-fixed rate                     4,134               3,696
Credit Card Commitments                  5,754               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.
<PAGE>

<TABLE>
Table 11:  Contractual Obligations
(dollars in thousands)
<CAPTION>
                                   Total    < 1year     1-3 years     3-5 years     > 5 years
<S>                               <C>       <C>           <C>            <C>         <C>
Federal Home Loan Bank
borrowings                        $32,500   $20,000       $12,500        $-             $-
Subordinated debentures            10,310       -             -           -           10,310
Total contractual obligations     $42,810   $20,000       $12,500        $-          $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 $500,000 in 2006.

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.

The main source of funding for the $31.6 million growth in the loan portfolio
during the first nine months of 2006 was the $45.9 million increase in deposits
during the comparable period.

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.

Management believes the Bank's liquidity resources will be sufficient in 2006
to fund the growth in loans 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 its earnings
base, and a strong capital position. Shorter-term liquidity needs, if
necessary, will be derived primarily from growth in short-term borrowings and
FHLB advances 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 September 30, 2006 was $36.2 million compared to $37.4
million at December 31, 2005.  The decrease in stockholders' equity in 2006 was
due primarily 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 $1.06 per
share in 2006 and 2005. Stockholders' equity at September 30, 2006 included $.6
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 $.6 million 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 12:  Mid-Wisconsin Capital Ratios
<CAPTION>
                                      Tier 1 Capital    Total Capital
<S>                                         <C>               <C>
September 30, 2006                          13.3%             14.3%
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%

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.

In designing and evaluating the disclosure controls and procedures, management
of Mid-Wisconsin recognized that any controls and procedures, no matter how
well designed and operated, can provide only reasonable assurance of achieving
the desired control objectives, and that management necessarily was required to
apply judgment in evaluating the cost-benefit relationship of possible controls
and procedures.  Management believes that the disclosure of controls and
procedures provide reasonable assurance of achieving its control objectives.

There were no changes in the internal control over financial reporting during
the quarter ended September 30, 2006 that have materially affected, or are
reasonably likely to materially affect, 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.
<PAGE>

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:  NOVEMBER 14, 2006      JAMES F. WARSAW
                              James F. Warsaw, President and
                              Chief Executive Officer
                              (Principal Executive Officer)


Date:  NOVEMBER 14, 2006      PAUL H. EWIG
                              Paul H. Ewig, Chief Financial Officer
                              (Principal Financial and Accounting Officer)



                                 EXHIBIT INDEX
                                       to
                                   FORM 10-Q
                                       of
                    MID-WISCONSIN FINANCIAL SERVICES, INC.
              for the quarterly period ended September 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