##### 



SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-KSB
 þ
    
    ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the Fiscal Year Ended June 30, 2005
 OR
 o
    
    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 1-14343
 MIDLAND CAPITAL HOLDINGS CORPORATION
  Delaware
    
    36-4238089(State or Other Jurisdiction of
    
    (I.R.S. EmployerIncorporation or Organization)
    
    Identification Number)8929 South Harlem AvenueBridgeview, Illinois
    
    60455(Address of Principal Executive Offices)
    
    Zip Code
 (708) 598-9400
 
  None
  Common Stock, par value $.01 per share
 þ o
 þ
   DOCUMENTS INCORPORATED BY REFERENCE




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##### 



TABLE OF CONTENTS  PART IItem 1. Description of BusinessItem 2. Description of PropertyItem 3. Legal ProceedingsItem 4. Submission of Matters to a Vote of Security HoldersPART IIItem 5. Market for Common Equity and Related Stockholder MattersItem 6. Managements Discussion and Analysis or Plan of OperationItem 7. Financial StatementsItem 8. Changes in and Disagreements with Accountants on Accounting and Financial DisclosureItem 8A. Controls and ProceduresItem 8B. Other InformationPART IIIItem 9. Directors, Executive Officers, Promoters and Control Persons; Compliance with Section 16(a) of the Exchange ActItem 10. Executive CompensationItem 11. Security Ownership of Certain Beneficial Owners and ManagementItem 12. Certain Relationships and Related TransactionsPART IVItem 13. ExhibitsItem 14. Principal Accountant Fees and ServicesSIGNATURESAnnual Reporr to Security HoldersSubsidiaries of the RegistrantCertificationSection 906 Cetification 
 PART I
 
 Item 1. Description of Business
       Forward-Looking Statements
  2




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##### 



Lending Activities
 General
     3




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##### 



4




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##### 



Loan and Mortgage-backed Securities Portfolio Composition
 June 30,2005
    
    
    2004
    
    
    2003Amount
    
    
    Percent
    
    
    Amount
    
    
    Percent
    
    
    Amount
    
    
    Percent(Dollars in Thousands)Real Estate LoansOne-to four-family:Held for investment
    
    $
    91,558
    
    
    
    96.46
    %
    
    $
    90,636
    
    
    
    95.69
    %
    
    $
    89,424
    
    
    
    94.95
    %Available for sale
    
    
    250
    
    
    
    0.26
    
    
    
    582
    
    
    
    0.61
    
    
    
    367
    
    
    
    0.39Multi-family
    
    
    1,125
    
    
    
    1.19
    
    
    
    1,119
    
    
    
    1.18
    
    
    
    1,994
    
    
    
    2.12Non-Residential
    
    
    805
    
    
    
    0.85
    
    
    
    821
    
    
    
    0.87
    
    
    
    687
    
    
    
    0.73Construction
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    250
    
    
    
    0.26Total real estate loans
    
    
    93,738
    
    
    
    98.76
    
    
    
    93,158
    
    
    
    98.35
    
    
    
    92,722
    
    
    
    98.45Other LoansConsumer Loans:Deposit accounts
    
    
    269
    
    
    
    0.28
    
    
    
    311
    
    
    
    0.33
    
    
    
    293
    
    
    
    0.31Student
    
    
    247
    
    
    
    0.26
    
    
    
    587
    
    
    
    0.62
    
    
    
    658
    
    
    
    0.70Automobile
    
    
    448
    
    
    
    0.47
    
    
    
    465
    
    
    
    0.49
    
    
    
    336
    
    
    
    0.36Credit card
    
    
    189
    
    
    
    0.20
    
    
    
    159
    
    
    
    0.16
    
    
    
    139
    
    
    
    0.15Other
    
    
    12
    
    
    
    0.01
    
    
    
    17
    
    
    
    0.02
    
    
    
    15
    
    
    
    0.01Total consumer loans
    
    
    1,165
    
    
    
    1.22
    
    
    
    1,539
    
    
    
    1.62
    
    
    
    1,441
    
    
    
    1.53Commercial business loans
    
    
    17
    
    
    
    0.02
    
    
    
    26
    
    
    
    0.03
    
    
    
    19
    
    
    
    0.02Total loans receivable
    
    
    94,920
    
    
    
    100.00
    %
    
    
    94,723
    
    
    
    100.00
    %
    
    
    94,182
    
    
    
    100.00
    %LessLoans in process
    
    
    25
    
    
    
    
    
    
    
    109
    
    
    
    
    
    
    
    617Deferred yield adjustments
    
    
    (405
    )
    
    
    
    
    
    
    (398
    )
    
    
    
    
    
    
    (407
    )Allowance for uncollected interest
    
    
    14
    
    
    
    
    
    
    
    9
    
    
    
    
    
    
    
    263Allowance for loan losses
    
    
    457
    
    
    
    
    
    
    
    460
    
    
    
    
    
    
    
    410Loans receivable, net
    
    $
    94,829
    
    
    
    
    
    
    $
    94,543
    
    
    
    
    
    
    $
    93,229Mortgage-backed securities:FHLMC
    
    $
    1,219
    
    
    
    63.49
    %
    
    $
    1,887
    
    
    
    64.12
    %
    
    $
    4,795
    
    
    
    76.29
    %FNMA
    
    
    680
    
    
    
    35.42
    
    
    
    1,012
    
    
    
    34.38
    
    
    
    1,423
    
    
    
    22.64GNMA
    
    
    21
    
    
    
    1.09
    
    
    
    44
    
    
    
    1.50
    
    
    
    67
    
    
    
    1.07Total mortgage-backed securities
    
    
    1,920
    
    
    
    100.00
    %
    
    
    2,943
    
    
    
    100.00
    %
    
    
    6,285
    
    
    
    100.00
    %Net discounts
    
    
    
    
    
    
    
    
    
    
    (1
    )
    
    
    
    
    
    
    (13
    )Net mortgage-backed securities
    
    $
    1,920
    
    
    
    
    
    
    $
    2,942
    
    
    
    
    
    
    $
    6,272
 5




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##### 



June 30,2005
    
    
    2004
    
    
    2003Amount
    
    
    Percent
    
    
    Amount
    
    
    Percent
    
    
    Amount
    
    
    Percent(Dollars in Thousands)Fixed-Rate LoansReal Estate:One-to four-family
    
    $
    81,686
    
    
    
    86.06
    %
    
    $
    83,540
    
    
    
    88.19
    %
    
    $
    83,491
    
    
    
    88.65
    %Multi-family
    
    
    415
    
    
    
    0.44
    
    
    
    425
    
    
    
    0.45
    
    
    
    370
    
    
    
    0.39Non-Residential
    
    
    574
    
    
    
    0.61
    
    
    
    588
    
    
    
    0.62
    
    
    
    452
    
    
    
    0.48Total real estate loans
    
    
    82,675
    
    
    
    87.11
    
    
    
    84,553
    
    
    
    89.26
    
    
    
    84,313
    
    
    
    89.52Consumer
    
    
    906
    
    
    
    0.95
    
    
    
    935
    
    
    
    0.99
    
    
    
    776
    
    
    
    0.82Total fixed-rate loans
    
    
    83,581
    
    
    
    88.06
    
    
    
    85,488
    
    
    
    90.25
    
    
    
    85,089
    
    
    
    90.34Adjustable-Rate LoansReal estate:One-to four-family
    
    
    10,122
    
    
    
    10.66
    
    
    
    7,678
    
    
    
    8.11
    
    
    
    6,300
    
    
    
    6.69Multi-family
    
    
    710
    
    
    
    0.75
    
    
    
    694
    
    
    
    0.73
    
    
    
    1,624
    
    
    
    1.73Non-Residential
    
    
    231
    
    
    
    0.24
    
    
    
    233
    
    
    
    0.25
    
    
    
    235
    
    
    
    0.25Construction
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    250
    
    
    
    0.26Total real estate loans
    
    
    11,063
    
    
    
    11.65
    
    
    
    8,605
    
    
    
    9.09
    
    
    
    8,409
    
    
    
    8.93Consumer
    
    
    259
    
    
    
    0.27
    
    
    
    604
    
    
    
    0.63
    
    
    
    665
    
    
    
    0.71Commercial business
    
    
    17
    
    
    
    0.02
    
    
    
    26
    
    
    
    0.03
    
    
    
    19
    
    
    
    0.02Total adjustable-rate loans
    
    
    11,339
    
    
    
    11.94
    
    
    
    9,235
    
    
    
    9.75
    
    
    
    9,093
    
    
    
    9.66Total loans receivable
    
    
    94,920
    
    
    
    100.00
    %
    
    
    94,723
    
    
    
    100.00
    %
    
    
    94,182
    
    
    
    100.00
    %LessLoans in process
    
    
    25
    
    
    
    
    
    
    
    109
    
    
    
    
    
    
    
    617Deferred yield adjustments
    
    
    (405
    )
    
    
    
    
    
    
    (398
    )
    
    
    
    
    
    
    (407
    )Allowance for uncollected interest
    
    
    14
    
    
    
    
    
    
    
    9
    
    
    
    
    
    
    
    263Allowance for loan losses
    
    
    457
    
    
    
    
    
    
    
    460
    
    
    
    
    
    
    
    410Loans receivable, net
    
    $
    94,829
    
    
    
    
    
    
    $
    94,543
    
    
    
    
    
    
    $
    93,229
  6




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##### 



Multi-Family and
    
    
    
    
    
    
    
    
    
    
    CommercialOne-to-Four Family
    
    
    Commercial
    
    
    Consumer
    
    
    Business
    
    
    Total(Dollars in Thousands)
    
    
    
    
    
    Weighted
    
    
    
    
    
    
    Weighted
    
    
    
    
    
    
    Weighted
    
    
    
    
    
    
    Weighted
    
    
    
    
    
    
    WeightedDue During Years
    
    
    
    
    
    Average
    
    
    
    
    
    
    Average
    
    
    
    
    
    
    Average
    
    
    
    
    
    
    Average
    
    
    
    
    
    
    Average,Ending June 30,
    
    Amount
    
    
    Rate
    
    
    Amount
    
    
    Rate
    
    
    Amount
    
    
    Rate
    
    
    Amount
    
    
    Rate
    
    
    Amount
    
    
    Rate2006(1)
    
    $
    889
    
    
    
    5.85
    %
    
    $
    231
    
    
    
    9.00
    %
    
    $
    275
    
    
    
    9.32
    %
    
    $
    17
    
    
    
    0.00
    %
    
    
    1,412
    
    
    
    6.97
    %2007
    
    
    607
    
    
    
    5.96
    %
    
    
    307
    
    
    
    7.25
    %
    
    
    144
    
    
    
    5.60
    %
    
    
    
    
    
    
    
    %
    
    
    1,058
    
    
    
    6.29
    %2008
    
    
    683
    
    
    
    5.77
    %
    
    
    
    
    
    
    
    %
    
    
    254
    
    
    
    5.57
    %
    
    
    
    
    
    
    
    %
    
    
    937
    
    
    
    5.72
    %2009 to 2010
    
    
    1,673
    
    
    
    6.00
    %
    
    
    
    
    
    
    
    %
    
    
    352
    
    
    
    6.22
    %
    
    
    
    
    
    
    
    %
    
    
    2,025
    
    
    
    6.04
    %2011 to 2014
    
    
    3,135
    
    
    
    5.89
    %
    
    
    118
    
    
    
    8.50
    %
    
    
    68
    
    
    
    5.77
    %
    
    
    
    
    
    
    
    %
    
    
    3,321
    
    
    
    5.98
    %2015 to 2029
    
    
    34,086
    
    
    
    5.67
    %
    
    
    415
    
    
    
    6.14
    %
    
    
    72
    
    
    
    4.11
    %
    
    
    
    
    
    
    
    %
    
    
    34,573
    
    
    
    5.67
    %2030 and following
    
    $
    50,736
    
    
    
    5.81
    %
    
    
    859
    
    
    
    6.17
    %
    
    $
    
    
    
    
    
    %
    
    
    
    
    
    
    
    %
    
    
    51,595
    
    
    
    5.82
    %$
    91,809
    
    
    
    
    
    
    $
    1,930
    
    
    
    
    
    
    $
    1,165
    
    
    
    
    
    
    $
    17
    
    
    
    
    
    
    $
    94,921
    
    
    
    5.80
    %
 
 (1)
    
    Includes demand loans, loans having no stated maturity and overdraft loans.  7




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##### 



One- to Four-Family Residential Real Estate Lending
       8




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##### 



Multi-Family Residential Lending
     Consumer Lending
   9




---



##### 



Commercial Real Estate Lending
  10




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##### 



Mortgage-Backed Securities
    Due In
    
    
    Balance Outstanding1 to 5
    
    
    6 to 20
    
    
    Over 20Years
    
    
    Years
    
    
    Years
    
    
    Fixed
    
    
    Adjustable(In Thousands)Federal Home Loan Mortgage Corporation
    
    $
    
    
    
    $
    1,014
    
    
    $
    205
    
    
    $
    
    
    
    $
    1,219Federal National Mortgage Association
    
    
    13
    
    
    
    646
    
    
    
    21
    
    
    
    13
    
    
    
    667Government National Mortgage Association
    
    
    
    
    
    
    21
    
    
    
    
    
    
    
    21
    
    
    
    Total
    
    $
    13
    
    
    $
    1,681
    
    
    $
    226
    
    
    $
    34
    
    
    $
    1,886
 Loan Originations, Purchases and Sales
   11




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##### 



12




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##### 



Year Ended June 30,2005
    
    
    2004
    
    
    2003(Dollars in Thousands)Originations by type:Adjustable-Rate:Real estate  one- to- four family
    
    $
    5,905
    
    
    $
    5,987
    
    
    $
    3,211Real estate  multi-family
    
    
    222
    
    
    
    
    
    
    
    717Construction
    
    
    
    
    
    
    
    
    
    
    400Non-real estate  consumer
    
    
    15
    
    
    
    47
    
    
    
    34Total adjustable rate
    
    
    6,142
    
    
    
    6,034
    
    
    
    4,362Fixed-Rate:Real estate  one- to- four family
    
    
    14,943
    
    
    
    34,810
    
    
    
    50,857Real estate  multi-family
    
    
    
    
    
    
    316
    
    
    
    117Non-Residential
    
    
    
    
    
    
    150
    
    
    
    Non-real estate  consumer
    
    
    1,196
    
    
    
    1,227
    
    
    
    1,086Total fixed-rate
    
    
    16,139
    
    
    
    36,503
    
    
    
    52,060Total loans originated
    
    
    22,281
    
    
    
    42,537
    
    
    
    56,422Sales and Repayments:Real estate loans sold
    
    
    (1,823
    )
    
    
    (1,371
    )
    
    
    (1,903
    )Principal repayments
    
    
    (20,261
    )
    
    
    (40,625
    )
    
    
    (46,720
    )Net increase
    
    $
    197
    
    
    
    541
    
    
    $
    7,799Mortgage-backed securities:Purchased
    
    
    
    
    
    $
    
    
    
    $
    Sold
    
    
    
    
    
    
    
    
    
    
    Amortization and repayments
    
    
    (1,022
    )
    
    $
    (3,331
    )
    
    $
    (4,087
    )Net decrease
    
    $
    (1,022
    )
    
    $
    (3,331
    )
    
    $
    (4,087
    )
 13




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##### 



Non-Performing Assets, Classified Assets, Loan Delinquencies and Defaults
  14




---



##### 



At June 30, 2005Loans Delinquent For:30-59 days
    
    
    60-89 days
    
    
    90 days and over
    
    
    TotalNumber
    
    
    Amount
    
    
    Percent
    
    
    Number
    
    
    Amount
    
    
    Percent
    
    
    Number
    
    
    Amount
    
    
    Percent
    
    
    Number
    
    
    Amount
    
    
    Percent(Dollars in Thousands)Real estate:One-to four-family
    
    
    11
    
    
    $
    936
    
    
    
    1.02
    %
    
    
    4
    
    
    $
    350
    
    
    
    0.38
    %
    
    
    7
    
    
    $
    316
    
    
    
    0.34
    %
    
    
    22
    
    
    $
    1,602
    
    
    
    1.74
    %Consumer
    
    
    1
    
    
    
    6
    
    
    
    0.06
    %
    
    
    3
    
    
    
    30
    
    
    
    0.25
    %
    
    
    6
    
    
    
    64
    
    
    
    0.55
    %
    
    
    10
    
    
    
    100
    
    
    
    0.86
    %Total
    
    
    12
    
    
    $
    942
    
    
    
    0.99
    %
    
    
    7
    
    
    $
    380
    
    
    
    0.40
    %
    
    
    13
    
    
    $
    380
    
    
    
    0.40
    %
    
    
    32
    
    
    $
    1,702
    
    
    
    1.79
    %
 At June 30, 2004Loans Delinquent For:30-59 days
    
    
    60-89 days
    
    
    90 days and over
    
    
    TotalNumber
    
    
    Amount
    
    
    Percent
    
    
    Number
    
    
    Amount
    
    
    Percent
    
    
    Number
    
    
    Amount
    
    
    Percent
    
    
    Number
    
    
    Amount
    
    
    Percent(Dollars in Thousands)Real estate:One-to four-family
    
    
    6
    
    
    $
    324
    
    
    
    0.36
    %
    
    
    3
    
    
    $
    212
    
    
    
    0.23
    %
    
    
    1
    
    
    $
    36
    
    
    
    0.04
    %
    
    
    10
    
    
    $
    572
    
    
    
    0.63
    %Consumer
    
    
    2
    
    
    
    11
    
    
    
    0.07
    
    
    
    1
    
    
    
    1
    
    
    
    0.01
    
    
    
    3
    
    
    
    19
    
    
    
    0.12
    
    
    
    6
    
    
    
    31
    
    
    
    0.20Total
    
    
    8
    
    
    $
    335
    
    
    
    0.35
    %
    
    
    4
    
    
    $
    213
    
    
    
    0.23
    %
    
    
    4
    
    
    $
    55
    
    
    
    0.06
    %
    
    
    16
    
    
    $
    603
    
    
    
    0.64
    %
 15




---



##### 



At June 30,2005
    
    
    2004
    
    
    2003(Dollars in Thousands)Non-Accruing Loans:One- to four-family
    
    $
    316
    
    
    $
    36
    
    
    $
    472Multi-family
    
    
    
    
    
    
    
    
    
    
    Consumer
    
    
    64
    
    
    
    19
    
    
    
    10Commercial business
    
    
    
    
    
    
    
    
    
    
    Total non-performing assets
    
    
    380
    
    
    
    55
    
    
    
    482Foreclosed Assets:Total
    
    
    
    
    
    
    
    
    
    
    Total non-performing assets
    
    $
    380
    
    
    $
    55
    
    
    $
    482Total as a percentage of total assets
    
    
    0.27
    %
    
    
    0.04
    %
    
    
    0.30
    %
    Classified Assets
 16




---



##### 



Allowance for Losses on Loans and Real Estate
   17




---



##### 



Year Ended June 30,2005
    
    
    2004
    
    
    2003(Dollars in Thousands)Balance at beginning of period
    
    $
    460
    
    
    $
    410
    
    
    $
    350Charge-offs:One- to four-family
    
    
    
    
    
    
    
    
    
    
    Consumer
    
    
    3
    
    
    
    18
    
    
    
    Commercial business
    
    
    
    
    
    
    
    
    
    
    Total charge-offs
    
    
    3
    
    
    
    18
    
    
    
    Recoveries:One- to four-family
    
    
    
    
    
    
    
    
    
    
    Consumer
    
    
    
    
    
    
    8
    
    
    
    Total recoveries
    
    
    
    
    
    
    8
    
    
    
    Net charge-offs
    
    
    (3
    )
    
    
    (10
    )
    
    
    Additions charged to operations
    
    
    
    
    
    
    60
    
    
    
    60Balance at end of period
    
    $
    457
    
    
    $
    460
    
    
    $
    410Ratio of net charge-offs during the year to
average loans outstanding during the period
    
    
    
    %
    
    
    0.01
    %
    
    
    
    %Ratio of net charge-offs during the year to
average non-performing assets
    
    
    1.35
    %
    
    
    3.19
    %
    
    
    
    %Allowance for loan losses to
non-performing loans
    
    
    120.06
    %
    
    
    829.00
    %
    
    
    84.80
    %Allowance for loan losses to total loans
    
    
    0.48
    %
    
    
    0.49
    %
    
    
    0.44
    %
 18




---



##### 



June 30,2005
    
    
    2004
    
    
    2003Percent of
    
    
    
    
    
    
    Percent of
    
    
    
    
    
    
    Percent ofLoans in
    
    
    
    
    
    
    Loans in
    
    
    
    
    
    
    Loans inEach
    
    
    
    
    
    
    Each
    
    
    
    
    
    
    EachCategory to
    
    
    
    
    
    
    Category
    
    
    
    
    
    
    Category toTotal
    
    
    
    
    
    
    to Total
    
    
    
    
    
    
    TotalAmount
    
    
    Loans
    
    
    Amount
    
    
    Loans
    
    
    Amount
    
    
    Loans(Dollars in Thousands)One- to four-family
    
    $
    154
    
    
    
    96.72
    %
    
    $
    110
    
    
    
    96.30
    %
    
    $
    177
    
    
    
    95.34
    %Multi-family
    
    
    2
    
    
    
    1.19
    
    
    
    2
    
    
    
    1.18
    
    
    
    2
    
    
    
    2.12Non-residential
    
    
    2
    
    
    
    0.85
    
    
    
    2
    
    
    
    0.87
    
    
    
    1
    
    
    
    0.73Construction
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.26Consumer
    
    
    4
    
    
    
    1.22
    
    
    
    4
    
    
    
    1.62
    
    
    
    4
    
    
    
    1.53Commercial business
    
    
    
    
    
    
    0.02
    
    
    
    
    
    
    
    0.03
    
    
    
    
    
    
    
    0.02Unallocated
    
    
    295
    
    
    
    
    
    
    
    342
    
    
    
    
    
    
    
    226
    
    
    
    Total
    
    $
    457
    
    
    
    100.00
    %
    
    $
    460
    
    
    
    100.00
    %
    
    $
    410
    
    
    
    100.00
    %
 Investment Activities
   19




---



##### 



At June 30,2005
    
    
    2004
    
    
    2003Carrying
    
    
    Fair
    
    
    Carrying
    
    
    Fair
    
    
    Carrying
    
    
    FairValue
    
    
    Value
    
    
    Value
    
    
    Value
    
    
    Value
    
    
    Value(In Thousands)Investment Securities:U.S. government securities
    
    $
    983
    
    
    $
    1,311
    
    
    $
    982
    
    
    $
    1,234
    
    
    $
    981
    
    
    $
    1,360U.S. agency securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,999
    
    
    
    5,029FHLB  Chicago stock
    
    
    1,124
    
    
    
    1,124
    
    
    
    1,062
    
    
    
    1,062
    
    
    
    996
    
    
    
    996Total investment securities
    
    $
    2,107
    
    
    $
    2,435
    
    
    $
    2,044
    
    
    $
    2,296
    
    
    $
    6,976
    
    
    $
    7,385Interest-bearing deposits:FHLB daily investment
    
    $
    3,909
    
    
    $
    3,909
    
    
    $
    2,850
    
    
    $
    2,850
    
    
    $
    8,264
    
    
    $
    8,264Other daily investments
    
    
    30,160
    
    
    
    30,160
    
    
    
    43,861
    
    
    
    43,861
    
    
    
    37,414
    
    
    
    37,414Total interest-bearing deposits
    
    $
    34,069
    
    
    $
    34,069
    
    
    $
    46,711
    
    
    $
    46,711
    
    
    $
    45,678
    
    
    $
    45,678
  June 30, 20051 Year or
    
    
    1 to 5
    
    
    Over 10
    
    
    Total InvestmentLess
    
    

Years
    
    

Years
    
    
    SecuritiesWeightedBook
    
    
    Book
    
    
    Book
    
    
    Book
    
    
    Fair
    
    
    AverageValue
    
    
    Value
    
    
    Value
    
    
    Value
    
    
    Value
    
    
    Yield(In Thousands)U.S. government and agency securities
    
    $
    
    
    
    $
    
    
    
    $
    983
    
    
    $
    983
    
    
    $
    
    
    
    
    U.S. Agency securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    
    
    
    $
    
    
    
    $
    983
    
    
    $
    983
    
    
    $
    
    
    
    
    7.60
    %
 Sources of Funds
 General
 Deposits
 20




---



##### 



Year Ended June 30,2005
    
    
    2004
    
    
    2003(Dollars in Thousands)Opening balance
    
    $
    140,437
    
    
    $
    147,490
    
    
    $
    138,444Deposits
    
    
    380,517
    
    
    
    400,918
    
    
    
    431,629Withdrawals
    
    
    (397,415
    )
    
    
    (409,569
    )
    
    
    (425,169
    )Balance before interest credited
    
    
    123,539
    
    
    
    138,839
    
    
    
    144,904Interest credited
    
    
    1,297
    
    
    
    1,598
    
    
    
    2,586Ending balance
    
    $
    124,836
    
    
    $
    140,437
    
    
    $
    147,490Net increase (decrease)
    
    $
    (15,601
    )
    
    $
    (7,053
    )
    
    $
    9,046Percent increase (decrease)
    
    
    (11.11
    )%
    
    
    (4.78
    )%
    
    
    6.53
    %
 21




---



##### 



June 30,2005
    
    
    2004
    
    
    2003Percent of
    
    
    
    
    
    
    Percent of
    
    
    
    
    
    
    Percent ofAmount
    
    
    Total
    
    
    Amount
    
    
    Total
    
    
    Amount
    
    
    Total(Dollars in Thousands)Passbook accounts
    
    $
    52,859
    
    
    
    42.34
    %
    
    $
    59,698
    
    
    
    42.51
    %
    
    $
    56,420
    
    
    
    38.25
    %NOW accounts
    
    
    12,029
    
    
    
    9.64
    
    
    
    12,983
    
    
    
    9.25
    
    
    
    13,785
    
    
    
    9.35Money market account
    
    
    6,108
    
    
    
    4.89
    
    
    
    7,497
    
    
    
    5.34
    
    
    
    7,649
    
    
    
    5.19Non-interest bearing deposits
    
    
    13,528
    
    
    
    10.84
    
    
    
    12,097
    
    
    
    8.61
    
    
    
    11,647
    
    
    
    7.90Total non-certificates
    
    
    84,524
    
    
    
    67.71
    
    
    
    92,275
    
    
    
    65.71
    
    
    
    89,501
    
    
    
    60.69Certificates:Interest rate range:0.75  1.00%
    
    
    14,589
    
    
    
    11.68
    
    
    
    3,210
    
    
    
    2.29
    
    
    
    233
    
    
    
    0.161.01  2.00%
    
    
    23,220
    
    
    
    18.60
    
    
    
    32,083
    
    
    
    22.84
    
    
    
    32,537
    
    
    
    22.062.01  3.00%
    
    
    2,503
    
    
    
    2.01
    
    
    
    10,075
    
    
    
    7.17
    
    
    
    15,204
    
    
    
    10.313.01  4.00%
    
    
    
    
    
    
    
    
    
    
    2,794
    
    
    
    1.99
    
    
    
    8,615
    
    
    
    5.844.01  5.00%
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,141
    
    
    
    0.775.01  6.00%
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    258
    
    
    
    0.176.01  7.00%
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total certificates
    
    
    40,312
    
    
    
    32.29
    
    
    
    48,162
    
    
    
    34.29
    
    
    
    57,988
    
    
    
    39.31Total deposits
    
    $
    124,936
    
    
    
    100.00
    %
    
    $
    140,437
    
    
    
    100.00
    %
    
    $
    147,489
    
    
    
    100.00
    %
 22




---



##### 



1.01-
    
    
    
    
    
    
    3.01-
    
    
    
    
    
    
    Percent of2.00%
    
    
    2.01-3.00%
    
    
    4.00%
    
    
    Total
    
    
    Total(Dollars in Thousands)Certificate Accounts Maturing
in Quarter Ending:September 30, 2005
    
    $
    10,087
    
    
    $
    4,420
    
    
    $
    101
    
    
    $
    14,608
    
    
    
    36.24
    %December 31, 2005
    
    
    3,101
    
    
    
    9,320
    
    
    
    
    
    
    
    12,421
    
    
    
    30.81March 31, 2006
    
    
    1,266
    
    
    
    5,563
    
    
    
    1,186
    
    
    
    8,015
    
    
    
    19.88June 30, 2006
    
    
    135
    
    
    
    1,822
    
    
    
    501
    
    
    
    2,458
    
    
    
    6.10September 30, 2006
    
    
    
    
    
    
    413
    
    
    
    44
    
    
    
    457
    
    
    
    1.13December 31, 2006
    
    
    
    
    
    
    632
    
    
    
    12
    
    
    
    644
    
    
    
    1.60March 31, 2007
    
    
    
    
    
    
    234
    
    
    
    126
    
    
    
    360
    
    
    
    0.89June 30, 2007
    
    
    
    
    
    
    210
    
    
    
    181
    
    
    
    391
    
    
    
    0.97September 30, 2007
    
    
    
    
    
    
    606
    
    
    
    35
    
    
    
    641
    
    
    
    1.59December 31, 2007
    
    
    
    
    
    
    
    
    
    
    317
    
    
    
    317
    
    
    
    0.79Total
    
    $
    14,589
    
    
    $
    23,220
    
    
    $
    2,503
    
    
    $
    40,312
    
    
    
    100.00
    %Percent of total
    
    
    36.19
    
    
    
    57.60
    
    
    
    6.21
    
    
    
    100.00
    %
  MaturityOver
    
    
    Over
    
    
    Over3 Months
    
    
    3 to 6
    
    
    6 to 12
    
    
    12or Less
    
    
    Months
    
    
    Months
    
    
    Months
    
    
    Total(Dollars in Thousands)Certificates of deposit less than $100,000
    
    $
    12,043
    
    
    $
    9,533
    
    
    $
    9,196
    
    
    $
    2,137
    
    
    $
    32,909Certificate of deposit of $100,000 or more
    
    
    2,565
    
    
    
    2,888
    
    
    
    1,277
    
    
    
    673
    
    
    
    7,403Total certificates of deposit
    
    $
    14,608
    
    
    $
    12,421
    
    
    $
    10,473
    
    
    $
    2,810
    
    
    $
    40,312
 Borrowings
  23




---



##### 



Competition
   Service Corporation
    REGULATION
 General
 24




---



##### 



Federal Regulation of Savings Associations
      25




---



##### 



Insurance of Accounts and Regulation by the FDIC
    Regulatory Capital Requirements
 26




---



##### 



27




---



##### 



28




---



##### 



Limitations on Dividends and Other Capital Distributions
   Accounting
  29




---



##### 



Qualified Thrift Lender Test
  Community Reinvestment Act
  Transactions with Affiliates and Insiders
 30




---



##### 



Anti-Money Laundering
  Holding Company Regulation
     31




---



##### 



Federal Securities Law
  Federal Reserve System
  Federal Home Loan Bank System
   32




---



##### 



Federal Taxation
     Illinois Taxation
 33




---



##### 



Employees
  
 Item 2. Description of Property
 Offices
    Computer Equipment
  
 Item 3. Legal Proceedings
  
 Item 4. Submission of Matters to a Vote of Security Holders
  34




---



##### 



PART II
 Item 5. Market for Common Equity and Related Stockholder Matters
  Item 6. Managements Discussion and Analysis or Plan of Operation
  Item 7. Financial Statements
  Item 8. Changes in and Disagreements with Accountants on Accounting and Financial
Disclosure
  Item 8A. Controls and Procedures
   Item 8B. Other Information
  PART III
 Item 9. Directors, Executive Officers, Promoters and Control Persons; Compliance with Section
16(a) of the Exchange Act
  35




---



##### 



Item 10. Executive Compensation
  Item 11. Security Ownership of Certain Beneficial Owners and Management
   (c)Number of securitiesremaining available(a)
    
    
    
    for future issuanceNumber of securities
    
    (b)
    
    under equityto be issued upon
    
    Weighted-average
    
    compensation plansexercise of outstanding
    
    exercise price of
    
    [excluding securitiesoptions, warrants and
    
    outstanding options,
    
    reflected in columnPlan Category
    
    rights
    
    warrants and rights
    
    (a)]Equity compensation plans approved by
securities holders:1. 1993 Stock Option and Incentive Plan.
    
    1. None
    
    1. N/A
    
    1. None2. Recognition and Retention Plan
    
    2. N/A
    
    2. N/A
    
    2. N/AEquity compensation plans not approved
by security holders
    
    N/A
    
    N/A
    
    N/ATotal
    
    None
    
    N/A
    
    None
 
 (1)
    
    Information regarding these plans is set forth under Item 10 to this Report.(2)
    
    Awards under this plan consist of restricted stock. Item 12. Certain Relationships and Related Transactions
  36




---



##### 



PART IV
 Item 13. Exhibits
 Reference to PriorRegulation
    
    
    
    FilingS-K Exhibit
    
    
    
    or Exhibit NumberNumber
    
    Document
    
    Attached Hereto2
    
    Plan of acquisition, reorganization, arrangement, liquid, or succession
    
    None3
    
    Articles of Incorporation and Bylaws
    
    **4
    
    Instruments defining the rights of security holders,including indentures:Common Stock Certificate
    
    **9
    
    Voting trust agreement
    
    None10
    
    Material contracts:Employee Stock Ownership Plan
    
    **1993 Stock Option and Incentive Plan
    
    *Employment Agreements
    
    **Recognition and Retention Plan
    
    *401(k) Retirement/Savings Plan
    
    **11
    
    Statement re computation of per share earnings
    
    ***13
    
    Annual Report to Security Holders
    
    1314
    
    Code of Ethics
    
    ****16
    
    Letter on change in certifying accountant
    
    None18
    
    Letter on change in accounting principles
    
    None21
    
    Subsidiaries of Registrant
    
    2122
    
    Published report regarding matters submitted to vote of security holders
    
    None23
    
    Consent of Experts and Counsel
    
    None24
    
    Power of Attorney
    
    Not required31.1
    
    Certification of Paul M. Zogas pursuant to Rule 13a-14 under theSecurities and Exchange Act of 1934
    
    31.132.1
    
    Certification of Paul M. Zogas pursuant to 18 U.S.C. Section 1350, asadopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2003
    
    32.1
 
 *
    
    Filed on March 19, 1993 as an exhibit to Midland Federals Pre-Effective Amendment No. One
to the Form AC.**
    
    Filed on June 22, 1998 as exhibits to Midland Capitals Registration Statement No.
333-57399 on Form S-4. All of such previously filed documents are hereby incorporated
herein by reference in accordance with Item 601 of Regulation S-B.***
    
    See Note 1 of the Notes to be Consolidated Financial Statements included in the Annual
Report under Exhibit 13.****
    
    Filed on September 28, 2004 as Exhibit 14 to Midland Capitals Annual Report on Form
10-QSB for the year ended June 30, 2004. 37




---



##### 



Item 14. Principal Accountant Fees and Services
  38




---



##### 

\

SIGNATURES
  MIDLAND CAPITAL HOLDINGS 
CORPORATIONDate: September 28, 2005
    
    By:
    
    /s/ Paul M. ZogasPaul M. Zogas
Chairman, President and Chief Executive
Officer
(Duly Authorized Representative)
  /s/ Paul M. Zogas
    
    /s/ Charles A. ZogasPaul M. Zogas, Chairman, President and
Chief Executive and Financial Officer
(Principal Executive and Financial and
Accounting Officer)
    
    Charles A. Zogas, Director, Executive
Vice President and SecretaryDate: September 28, 2005
    
    Date: September 28, 2005/s/ Jonas Vaznelis, Director
    
    /s/ Richard TaylorJonas Vaznelis, Director
    
    Richard Taylor, Director and Vice
PresidentDate: September 28, 2005
    
    Date: September 28, 2005/s/ Michael J. Kukanza
    
    /s/ Algerd BrazisMichael J. Kukanza, Director
    
    Algerd Brazis, DirectorDate: September 28, 2005
    
    Date: September 28, 2005
 39