##### Table of Contents



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, 2007
 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
 o
 þ o
 þ
 o o
   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 ServicesSIGNATURESExhibit 13Exhibit 21Exhibit 31.1Exhibit 32.1    Table of Contents  
 PART I
 
 Item 1. Description of Business
      Forward-Looking Statements
   2




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##### Table of Contents



Lending Activities
 General
      3




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4




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##### Table of Contents



Loan and Mortgage-backed Securities Portfolio Composition
 June 30,2007
    
    
    2006
    
    
    2005Amount
    
    
    Percent
    
    
    Amount
    
    
    Percent
    
    
    Amount
    
    
    Percent(Dollars in Thousands)Real Estate LoansOne-to four-family (1):Held for investment
    
    $
    79,749
    
    
    
    93.90
    %
    
    $
    88,618
    
    
    
    95.55
    %
    
    $
    91,558
    
    
    
    96.46
    %Available for sale
    
    
    1,012
    
    
    
    1.19
    
    
    
    843
    
    
    
    0.91
    
    
    
    250
    
    
    
    0.26Multi-family
    
    
    1,610
    
    
    
    1.90
    
    
    
    1,642
    
    
    
    1.77
    
    
    
    1,125
    
    
    
    1.19Non-Residential
    
    
    1,839
    
    
    
    2.17
    
    
    
    750
    
    
    
    0.81
    
    
    
    805
    
    
    
    0.85Total real estate loans
    
    
    84,210
    
    
    
    99.16
    
    
    
    91,853
    
    
    
    99.04
    
    
    
    93,738
    
    
    
    98.76Other LoansConsumer Loans:Deposit accounts
    
    
    126
    
    
    
    0.14
    
    
    
    188
    
    
    
    0.20
    
    
    
    269
    
    
    
    0.28Student
    
    
    108
    
    
    
    0.13
    
    
    
    161
    
    
    
    0.18
    
    
    
    247
    
    
    
    0.26Automobile
    
    
    296
    
    
    
    0.34
    
    
    
    355
    
    
    
    0.38
    
    
    
    448
    
    
    
    0.47Credit card
    
    
    188
    
    
    
    0.22
    
    
    
    149
    
    
    
    0.16
    
    
    
    189
    
    
    
    0.20Other
    
    
    1
    
    
    
    0.00
    
    
    
    2
    
    
    
    0.00
    
    
    
    12
    
    
    
    0.01Total consumer loans
    
    
    719
    
    
    
    0.83
    
    
    
    855
    
    
    
    0.92
    
    
    
    1,165
    
    
    
    1.22Commercial business loans
    
    
    5
    
    
    
    0.01
    
    
    
    38
    
    
    
    0.04
    
    
    
    17
    
    
    
    0.02Total loans receivable
    
    
    84,934
    
    
    
    100.00
    %
    
    
    92,746
    
    
    
    100.00
    %
    
    
    94,920
    
    
    
    100.00
    %LessLoans in process
    
    
    7
    
    
    
    
    
    
    
    172
    
    
    
    
    
    
    
    25Deferred yield adjustments
    
    
    (364
    )
    
    
    
    
    
    
    (407
    )
    
    
    
    
    
    
    (405
    )Allowance for uncollected interest
    
    
    14
    
    
    
    
    
    
    
    20
    
    
    
    
    
    
    
    14Allowance for loan losses
    
    
    420
    
    
    
    
    
    
    
    416
    
    
    
    
    
    
    
    457Loans receivable, net
    
    $
    84,857
    
    
    
    
    
    
    $
    92,545
    
    
    
    
    
    
    $
    94,829Mortgage-backed securities:FHLMC
    
    $
    898
    
    
    
    60.88
    %
    
    $
    1,065
    
    
    
    63.24
    %
    
    $
    1,219
    
    
    
    63.49
    %FNMA
    
    
    577
    
    
    
    39.12
    
    
    
    615
    
    
    
    36.52
    
    
    
    680
    
    
    
    35.42GNMA
    
    
    
    
    
    
    
    
    
    
    4
    
    
    
    0.24
    
    
    
    21
    
    
    
    1.09Total mortgage-backed securities
    
    
    1,475
    
    
    
    100.00
    %
    
    
    1,684
    
    
    
    100.00
    %
    
    
    1,920
    
    
    
    100.00
    %Net discounts
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Net mortgage-backed securities
    
    $
    1,475
    
    
    
    
    
    
    $
    1,684
    
    
    
    
    
    
    $
    1,920
 (1)
    
    Includes $3,707 of home equity loans and lines of credit at June 30, 2007.  5




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June 30,2007
    
    
    2006
    
    
    2005Amount
    
    
    Percent
    
    
    Amount
    
    
    Percent
    
    
    Amount
    
    
    Percent(Dollars in Thousands)Fixed-Rate LoansReal Estate:One-to four-family
    
    $
    73,781
    
    
    
    86.87
    %
    
    $
    78,961
    
    
    
    85.14
    %
    
    $
    81,686
    
    
    
    86.06
    %Multi-family
    
    
    853
    
    
    
    1.01
    
    
    
    872
    
    
    
    0.94
    
    
    
    415
    
    
    
    0.44Non-Residential
    
    
    217
    
    
    
    0.26
    
    
    
    522
    
    
    
    0.56
    
    
    
    574
    
    
    
    0.61Total real estate loans
    
    
    74,851
    
    
    
    88.14
    
    
    
    80,355
    
    
    
    86.64
    
    
    
    82,675
    
    
    
    87.11Consumer
    
    
    610
    
    
    
    0.71
    
    
    
    692
    
    
    
    0.74
    
    
    
    906
    
    
    
    0.95Total fixed-rate loans
    
    
    75,461
    
    
    
    88.85
    
    
    
    81,047
    
    
    
    87.38
    
    
    
    83,581
    
    
    
    88.06Adjustable-Rate LoansReal estate:One-to four-family
    
    
    6,980
    
    
    
    8.22
    
    
    
    10,500
    
    
    
    11.32
    
    
    
    10,122
    
    
    
    10.66Multi-family
    
    
    757
    
    
    
    0.89
    
    
    
    770
    
    
    
    0.83
    
    
    
    710
    
    
    
    0.53Non-Residential
    
    
    1,622
    
    
    
    1.91
    
    
    
    228
    
    
    
    0.25
    
    
    
    231
    
    
    
    0.24Total real estate loans
    
    
    9,359
    
    
    
    11.02
    
    
    
    11,498
    
    
    
    12.40
    
    
    
    11,063
    
    
    
    11.65Consumer
    
    
    109
    
    
    
    0.12
    
    
    
    163
    
    
    
    0.18
    
    
    
    259
    
    
    
    0.27Commercial business
    
    
    5
    
    
    
    0.01
    
    
    
    38
    
    
    
    0.04
    
    
    
    17
    
    
    
    0.02Total adjustable-rate loans
    
    
    9,473
    
    
    
    11.15
    
    
    
    11,699
    
    
    
    12.62
    
    
    
    11,339
    
    
    
    11.94Total loans receivable
    
    
    84,934
    
    
    
    100.00
    %
    
    
    92,746
    
    
    
    100.00
    %
    
    
    94,920
    
    
    
    100.00
    %LessLoans in process
    
    
    7
    
    
    
    
    
    
    
    172
    
    
    
    
    
    
    
    25Deferred yield adjustments
    
    
    (364
    )
    
    
    
    
    
    
    (407
    )
    
    
    
    
    
    
    (405
    )Allowance for uncollected interest
    
    
    14
    
    
    
    
    
    
    
    20
    
    
    
    
    
    
    
    14Allowance for loan losses
    
    
    420
    
    
    
    
    
    
    
    416
    
    
    
    
    
    
    
    457Loans receivable, net
    
    $
    84,857
    
    
    
    
    
    
    $
    92,545
    
    
    
    
    
    
    $
    94,829
   6




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Multi-Family and
    
    
    
    
    
    
    
    
    
    
    CommercialOne-to-Four Family
    
    
    Commercial
    
    
    Consumer
    
    
    Business
    
    
    TotalWeighted
    
    
    
    
    
    
    Weighted
    
    
    
    
    
    
    Weighted
    
    
    
    
    
    
    Weighted
    
    
    
    
    
    
    WeightedAverage
    
    
    
    
    
    
    Average
    
    
    
    
    
    
    Average
    
    
    
    
    
    
    Average
    
    
    
    
    
    
    Average(Dollars in Thousands)
    
    Amount
    
    
    Rate
    
    
    Amount
    
    
    Rate
    
    
    Amount
    
    
    Rate
    
    
    Amount
    
    
    Rate
    
    
    Amount
    
    
    RateDue During Years
Ending June 30,2008(1)
    
    $
    474
    
    
    
    6.81
    %
    
    $
    
    
    
    
    
    %
    
    $
    212
    
    
    
    10.82
    %
    
    $
    5
    
    
    
    0.00
    %
    
    
    691
    
    
    
    7.99
    %2009
    
    
    284
    
    
    
    7.70
    %
    
    
    
    
    
    
    
    %
    
    
    119
    
    
    
    6.32
    %
    
    
    
    
    
    
    
    %
    
    
    403
    
    
    
    7.29
    %2010
    
    
    458
    
    
    
    7.74
    %
    
    
    
    
    
    
    
    %
    
    
    128
    
    
    
    5.81
    %
    
    
    
    
    
    
    
    %
    
    
    586
    
    
    
    7.32
    %2011 to 2012
    
    
    1,577
    
    
    
    7.70
    %
    
    
    1,138
    
    
    
    7.65
    %
    
    
    189
    
    
    
    6.89
    %
    
    
    
    
    
    
    
    %
    
    
    2,904
    
    
    
    7.63
    %2013 to 2016
    
    
    3,030
    
    
    
    5.97
    %
    
    
    
    
    
    
    
    %
    
    
    71
    
    
    
    7.58
    %
    
    
    
    
    
    
    
    %
    
    
    3,101
    
    
    
    6.01
    %2017 to 2031
    
    
    28,032
    
    
    
    5.72
    %
    
    
    294
    
    
    
    5.75
    %
    
    
    
    
    
    
    
    %
    
    
    
    
    
    
    
    %
    
    
    28,326
    
    
    
    5.72
    %2032 and following
    
    $
    46,906
    
    
    
    5.86
    %
    
    
    2,017
    
    
    
    7.29
    %
    
    $
    
    
    
    
    
    %
    
    
    
    
    
    
    
    %
    
    
    48,923
    
    
    
    5.92
    %$
    80,761
    
    
    
    
    
    
    $
    3,449
    
    
    
    
    
    
    $
    719
    
    
    
    
    
    
    $
    5
    
    
    
    
    
    
    $
    84,934
    
    
    
    5.95
    %
 
 (1)
    
    Includes demand loans, loans having no stated maturity and overdraft loans.   7




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##### Table of Contents



One- to Four-Family Residential Real Estate Lending
        8




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##### Table of Contents



Multi-Family Residential Lending
     Consumer Lending
    9




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##### Table of Contents



Commercial Real Estate Lending
   10




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##### Table of Contents



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
    
    $
    
    
    
    $
    820
    
    
    $
    78
    
    
    $
    
    
    
    $
    898Federal National Mortgage Association
    
    
    
    
    
    
    577
    
    
    
    
    
    
    
    
    
    
    
    577Total
    
    $
    
    
    
    $
    1,489
    
    
    $
    78
    
    
    $
    
    
    
    $
    1,475
 Loan Originations, Purchases and Sales
    11




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##### Table of Contents



Year Ended June 30,2007
    
    
    2006
    
    
    2005(In Thousands)Originations by type:Adjustable-Rate:Real estate  one- to- four family
    
    $
    2,498
    
    
    $
    5,437
    
    
    $
    5,905Real estate  multi-family
    
    
    
    
    
    
    318
    
    
    
    222Non-Residential
    
    
    1,330
    
    
    
    225
    
    
    
    Non-real estate  consumer
    
    
    
    
    
    
    
    
    
    
    15Total adjustable rate
    
    
    3,828
    
    
    
    5,980
    
    
    
    6,142Fixed-Rate:Real estate  one- to- four family
    
    
    12,440
    
    
    
    15,479
    
    
    
    14,943Real estate  multi-family
    
    
    
    
    
    
    575
    
    
    
    Non-Residential
    
    
    
    
    
    
    
    
    
    
    Non-real estate  consumer
    
    
    829
    
    
    
    934
    
    
    
    1,196Total fixed-rate
    
    
    13,269
    
    
    
    16,988
    
    
    
    16,139Total loans originated
    
    
    17,097
    
    
    
    22,968
    
    
    
    22,281Sales and Repayments:Real estate loans sold
    
    
    (7,877
    )
    
    
    (5,145
    )
    
    
    (1,823
    )Principal repayments
    
    
    (17,031
    )
    
    
    (19,998
    )
    
    
    (20,261
    )Net (decrease) increase
    
    $
    (7,811
    )
    
    $
    (2,175
    )
    
    
    197Mortgage-backed securities:Purchased
    
    
    
    
    
    
    
    
    
    $
    Sold
    
    
    
    
    
    
    
    
    
    
    Amortization and repayments
    
    
    (209
    )
    
    
    (236
    )
    
    $
    (1,022
    )Net decrease
    
    $
    (209
    )
    
    $
    (236
    )
    
    $
    (1,022
    )
  12




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##### Table of Contents



Non-Performing Assets, Classified Assets, Loan Delinquencies and Defaults
   13




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##### Table of Contents



At June 30, 2007Loans 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
    
    
    $
    918
    
    
    
    1.15
    %
    
    
    2
    
    
    $
    128
    
    
    
    0.16
    %
    
    
    4
    
    
    $
    484
    
    
    
    0.61
    %
    
    
    17
    
    
    $
    1,530
    
    
    
    1.92
    %Consumer
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    %
    
    
    4
    
    
    
    27
    
    
    
    3.67
    %
    
    
    4
    
    
    
    27
    
    
    
    3.67
    %Total
    
    
    11
    
    
    $
    918
    
    
    
    1.08
    %
    
    
    2
    
    
    $
    128
    
    
    
    0.15
    %
    
    
    8
    
    
    $
    511
    
    
    
    0.60
    %
    
    
    21
    
    
    $
    1,557
    
    
    
    1.83
    %
 At June 30, 2006Loans 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
    
    
    12
    
    
    $
    1,107
    
    
    
    1.24
    %
    
    
    1
    
    
    $
    50
    
    
    
    0.05
    %
    
    
    4
    
    
    $
    295
    
    
    
    0.33
    %
    
    
    17
    
    
    $
    1,452
    
    
    
    1.62
    %Consumer
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    %
    
    
    6
    
    
    
    64
    
    
    
    7.49
    %
    
    
    6
    
    
    
    64
    
    
    
    7.49
    %Total
    
    
    12
    
    
    $
    1,107
    
    
    
    1.19
    %
    
    
    1
    
    
    $
    50
    
    
    
    0.05
    %
    
    
    10
    
    
    $
    359
    
    
    
    0.39
    %
    
    
    23
    
    
    $
    1,516
    
    
    
    1.63
    %
  14




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##### Table of Contents



At June 30,2007
    
    
    2006
    
    
    2005(Dollars in Thousands)Non-Accruing Loans:One- to four-family
    
    $
    485
    
    
    $
    295
    
    
    $
    316Multi-family
    
    
    
    
    
    
    
    
    
    
    Consumer
    
    
    26
    
    
    
    32
    
    
    
    64Commercial business
    
    
    
    
    
    
    
    
    
    
    Total non-performing assets
    
    
    511
    
    
    
    327
    
    
    
    380Foreclosed Assets:
    
    
    
    
    
    
    
    
    
    
    Total
    
    
    
    
    
    
    
    
    
    
    Total non-performing assets
    
    $
    511
    
    
    $
    327
    
    
    $
    380Total as a percentage of total assets
    
    
    0.41
    %
    
    
    0.25
    %
    
    
    0.27
    %
    Classified Assets
  15




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##### Table of Contents



Allowance for Losses on Loans and Real Estate
    16




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##### Table of Contents



Year Ended June 30,2007
    
    
    2006
    
    
    2005(Dollars in Thousands)Balance at beginning of period
    
    $
    416
    
    
    $
    457
    
    
    $
    460Charge-offs:One- to four-family
    
    
    
    
    
    
    
    
    
    
    Consumer
    
    
    2
    
    
    
    43
    
    
    
    3Commercial business
    
    
    
    
    
    
    
    
    
    
    Total charge-offs
    
    
    2
    
    
    
    43
    
    
    
    3Recoveries:One- to four-family
    
    
    
    
    
    
    
    
    
    
    Consumer
    
    
    6
    
    
    
    2
    
    
    
    Total recoveries
    
    
    6
    
    
    
    2
    
    
    
    Net charge-offs
    
    
    4
    
    
    
    (41
    )
    
    
    (3
    )Additions charged to operations
    
    
    
    
    
    
    
    
    
    
    Balance at end of period
    
    $
    420
    
    
    $
    416
    
    
    $
    457Ratio of net charge-offs during the year to
average loans outstanding during the period
    
    
    
    %
    
    
    0.04
    %
    
    
    
    %Ratio of net charge-offs during the year to
average non-performing assets
    
    
    
    %
    
    
    13.35
    %
    
    
    1.35
    %Allowance for loan losses to
non-performing loans
    
    
    82.22
    %
    
    
    127.27
    %
    
    
    120.06
    %Allowance for loan losses to total loans
    
    
    0.49
    %
    
    
    0.45
    %
    
    
    0.48
    %
  17




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##### Table of Contents



June 30,2007
    
    
    2006
    
    
    2005Percent 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
    
    $
    186
    
    
    
    95.09
    %
    
    $
    140
    
    
    
    96.46
    %
    
    $
    154
    
    
    
    96.72
    %Multi-family
    
    
    3
    
    
    
    1.90
    
    
    
    3
    
    
    
    1.77
    
    
    
    2
    
    
    
    1.19Non-residential
    
    
    4
    
    
    
    2.17
    
    
    
    2
    
    
    
    0.81
    
    
    
    2
    
    
    
    0.85Consumer
    
    
    3
    
    
    
    0.83
    
    
    
    3
    
    
    
    0.92
    
    
    
    4
    
    
    
    1.22Commercial business
    
    
    
    
    
    
    0.01
    
    
    
    1
    
    
    
    0.04
    
    
    
    
    
    
    
    0.02Unallocated
    
    
    224
    
    
    
    
    
    
    
    267
    
    
    
    
    
    
    
    295
    
    
    
    Total
    
    $
    420
    
    
    
    100.00
    %
    
    $
    416
    
    
    
    100.00
    %
    
    $
    457
    
    
    
    100.00
    %
 Investment Activities
    18




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##### Table of Contents



At June 30,2007
    
    
    2006
    
    
    2005Carrying
    
    
    Fair
    
    
    Carrying
    
    
    Fair
    
    
    Carrying
    
    
    FairValue
    
    
    Value
    
    
    Value
    
    
    Value
    
    
    Value
    
    
    Value(In Thousands)Investment Securities:U.S. government securities
    
    $
    21,020
    
    
    $
    21,020
    
    
    $
    20,821
    
    
    $
    21,022
    
    
    $
    983
    
    
    $
    1,311FHLB  Chicago stock
    
    
    1,148
    
    
    
    1,148
    
    
    
    1,148
    
    
    
    1,148
    
    
    
    1,124
    
    
    
    1,124Total investment securities
    
    $
    22,168
    
    
    $
    22,168
    
    
    $
    21,969
    
    
    $
    22,170
    
    
    $
    2,107
    
    
    $
    2,435Interest-bearing deposits:FHLB daily investment
    
    $
    6,234
    
    
    $
    6,234
    
    
    $
    3,488
    
    
    $
    3,488
    
    
    $
    3,909
    
    
    $
    3,909Other daily investments
    
    
    4,998
    
    
    
    4,998
    
    
    
    5,567
    
    
    
    5,567
    
    
    
    30,160
    
    
    
    30,160Total interest-bearing deposits
    
    $
    11,232
    
    
    $
    11,232
    
    
    $
    9,055
    
    
    $
    9,055
    
    
    $
    34,069
    
    
    $
    34,069
  June 30, 20061 Year or
    
    
    1 to 5
    
    
    Over 10
    
    
    Total InvestmentLess
    
    
    Years
    
    
    Years
    
    
    SecuritiesWeightedBook
    
    
    Book
    
    
    Book
    
    
    Book
    
    
    Fair
    
    
    AverageValue
    
    
    Value
    
    
    Value
    
    
    Value
    
    
    Value
    
    
    Yield(Dollars in Thousands)U.S. government securities
    
    $
    19,841
    
    
    $
    
    
    
    $
    1,179
    
    
    $
    21,020
    
    
    $
    21,020
    
    
    
    $
    19,841
    
    
    $
    
    
    
    $
    1,179
    
    
    $
    21,020
    
    
    $
    21,020
    
    
    
    5.24
    %
 Sources of Funds
 General
 Deposits
  19




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##### Table of Contents



Year Ended June 30,2007
    
    
    2006
    
    
    2005(Dollars in Thousands)Opening balance
    
    $
    115,971
    
    
    $
    124,836
    
    
    $
    140,437Deposits
    
    
    313,331
    
    
    
    353,793
    
    
    
    380,517Withdrawals
    
    
    (321,479
    )
    
    
    (364,207
    )
    
    
    (397,415
    )Balance before interest credited
    
    
    107,823
    
    
    
    114,422
    
    
    
    123,539Interest credited
    
    
    1,922
    
    
    
    1,549
    
    
    
    1,297Ending balance
    
    $
    109,745
    
    
    $
    115,971
    
    
    $
    124,836Net decrease
    
    $
    (6,226
    )
    
    $
    (8,865
    )
    
    $
    (15,601
    )Percent decrease
    
    
    (5.37
    )%
    
    
    (7.10
    )%
    
    
    (11.11
    )%
  20




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##### Table of Contents



June 30,2007
    
    
    2006
    
    
    2005Percent of
    
    
    
    
    
    
    Percent of
    
    
    
    
    
    
    Percent ofAmount
    
    
    Total
    
    
    Amount
    
    
    Total
    
    
    Amount
    
    
    Total(Dollars in Thousands)Passbook accounts
    
    $
    43,694
    
    
    
    39.81
    %
    
    $
    48,439
    
    
    
    41.77
    %
    
    $
    52,859
    
    
    
    42.34
    %NOW accounts
    
    
    10,032
    
    
    
    9.14
    
    
    
    10,855
    
    
    
    9.36
    
    
    
    12,029
    
    
    
    9.64Money market accounts
    
    
    3,751
    
    
    
    3.42
    
    
    
    5,106
    
    
    
    4.40
    
    
    
    6,108
    
    
    
    4.89Non-interest bearing deposits
    
    
    9,971
    
    
    
    9.09
    
    
    
    11,783
    
    
    
    10.16
    
    
    
    13,528
    
    
    
    10.84Total non-certificates
    
    
    67,448
    
    
    
    61.46
    
    
    
    76,183
    
    
    
    65.69
    
    
    
    84,524
    
    
    
    67.71Certificates:Interest rate range:1.01  2.00%
    
    
    
    
    
    
    
    
    
    
    818
    
    
    
    0.70
    
    
    
    14,589
    
    
    
    11.682.01  3.00%
    
    
    2,142
    
    
    
    1.95
    
    
    
    8,212
    
    
    
    7.08
    
    
    
    23,220
    
    
    
    18.603.01  4.00%
    
    
    20,536
    
    
    
    18.71
    
    
    
    21,533
    
    
    
    18.57
    
    
    
    2,503
    
    
    
    2.014.01  5.00%
    
    
    5,961
    
    
    
    5.43
    
    
    
    6,768
    
    
    
    5.84
    
    
    
    
    
    
    
    5.01  6.00%
    
    
    13,658
    
    
    
    12.45
    
    
    
    2,457
    
    
    
    2.12
    
    
    
    
    
    
    
    Total certificates
    
    
    42,297
    
    
    
    38.54
    
    
    
    39,788
    
    
    
    34.31
    
    
    
    40,312
    
    
    
    32.29Total deposits
    
    $
    109,745
    
    
    
    100.00
    %
    
    $
    115,971
    
    
    
    100.00
    %
    
    $
    124,836
    
    
    
    100.00
    %
  21




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##### Table of Contents



2.01-
    
    
    3.01-
    
    
    4.01-
    
    
    5.01-
    
    
    
    
    
    
    Percent of3.00%
    
    
    4.00%
    
    
    5.00%
    
    
    6.00%
    
    
    Total
    
    
    TotalCertificate
Accounts Maturing
in Quarter Ending:September 30, 2007
    
    $
    1,643
    
    
    $
    5,425
    
    
    
    1,802
    
    
    
    4,860
    
    
    $
    13,730
    
    
    
    32.46
    %December 31, 2007
    
    
    499
    
    
    
    7,229
    
    
    
    2,197
    
    
    
    2,895
    
    
    
    12,820
    
    
    
    30.31March 31, 2008
    
    
    
    
    
    
    2,932
    
    
    
    1,203
    
    
    
    3,132
    
    
    
    7,267
    
    
    
    17.18June 30, 2008
    
    
    
    
    
    
    1,846
    
    
    
    286
    
    
    
    2,305
    
    
    
    4,437
    
    
    
    10.49September 30, 2008
    
    
    
    
    
    
    695
    
    
    
    102
    
    
    
    142
    
    
    
    939
    
    
    
    2.22December 31, 2008
    
    
    
    
    
    
    754
    
    
    
    207
    
    
    
    109
    
    
    
    1,070
    
    
    
    2.53March 31, 2009
    
    
    
    
    
    
    684
    
    
    
    149
    
    
    
    32
    
    
    
    865
    
    
    
    2.05June 30, 2009
    
    
    
    
    
    
    481
    
    
    
    
    
    
    
    183
    
    
    
    664
    
    
    
    1.57September 30, 2009
    
    
    
    
    
    
    292
    
    
    
    15
    
    
    
    
    
    
    
    307
    
    
    
    0.72December 31, 2009
    
    
    
    
    
    
    198
    
    
    
    
    
    
    
    
    
    
    
    198
    
    
    
    0.47Total
    
    $
    2,142
    
    
    $
    20,536
    
    
    
    5,961
    
    
    
    13,658
    
    
    $
    42,297
    
    
    
    100.00
    %Percent of total
    
    
    5.07
    
    
    
    48.55
    
    
    
    14.09
    
    
    
    32.29
    
    
    
    100.00
    %
  MaturityOver
    
    
    Over
    
    
    Over3 Months
    
    
    3 to 6
    
    
    6 to 12
    
    
    12or Less
    
    
    Months
    
    
    Months
    
    
    Months
    
    
    Total(In Thousands)Certificates of deposit less than $100,000
    
    $
    10,221
    
    
    $
    9,070
    
    
    $
    9,697
    
    
    $
    2,408
    
    
    $
    31,396Certificate of deposit of $100,000 or more
    
    
    3,509
    
    
    
    3,750
    
    
    
    2,007
    
    
    
    1,635
    
    
    
    10,901Total certificates of deposit
    
    $
    13,730
    
    
    $
    12,820
    
    
    $
    11,704
    
    
    $
    4,043
    
    
    $
    42,297
 Borrowings
   22




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##### Table of Contents



Competition
   Service Corporation
    REGULATION
 General
  23




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##### Table of Contents



Federal Regulation of Savings Associations
      24




---



##### Table of Contents



Insurance of Accounts and Regulation by the FDIC
 Regulatory Capital Requirements
     25




---



##### Table of Contents



26




---



##### Table of Contents



Limitations on Dividends and Other Capital Distributions
  27




---



##### Table of Contents



Accounting
  Qualified Thrift Lender Test
   28




---



##### Table of Contents



Community Reinvestment Act
  Transactions with Affiliates and Insiders
  Anti-Money Laundering
  Holding Company Regulation
   29




---



##### Table of Contents



Federal Securities Law
  Federal Reserve System
   30




---



##### Table of Contents



Federal Home Loan Bank System
    Federal Taxation
   31




---



##### Table of Contents



Illinois Taxation
 Employees
  
 Item 2. Description of Property
 Offices
    32




---



##### Table of Contents



Computer Equipment
  
 Item 3. Legal Proceedings
  
 Item 4. Submission of Matters to a Vote of Security Holders
  
 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
   33




---



##### Table of Contents



Item 8B. Other Information
  
 PART III
 
 Item 9. Directors, Executive Officers, Promoters and Control Persons; Compliance with Section
16(a) of the Exchange Act
  
 Item 10. Executive Compensation
  
 Item 11. Security Ownership of Certain Beneficial Owners and Management
   34




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##### Table of Contents



(c)Number of securitiesremaining available(a)
    
    
    
    
    
    
    for future issuanceNumber of securities
    
    
    
    
    
    
    under equityto be issued upon
    
    
    (b)
    
    
    compensation plansexercise of
    
    
    Weighted-average
    
    
    [excludingoutstanding
    
    
    exercise price of
    
    
    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.  6,9002. 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
   35




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##### Table of Contents



PART IV
 
 Item 13. Exhibits
 Reference to PriorFilingRegulation
    
    
    
    or ExhibitS-K Exhibit
    
    
    
    Number AttachedNumber
    
    Document
    
    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 the
Securities and Exchange Act of 1934
    
    31.132.1
    
    Certification of Paul M. Zogas pursuant to 18 U.S.C. Section 1350, as
adopted 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.  36




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##### Table of Contents



Item 14. Principal Accountant Fees and Services
   37




---



##### Table of Contents



SIGNATURES
  MIDLAND CAPITAL HOLDINGS CORPORATIONDate: September 28, 2007
    By:
    /s/ Paul M. ZogasPaul M. ZogasChairman, 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, 2007
    
    
    
    Date: September 28, 2007/s/ Jonas Vaznelis
    
    
    
    /s/ Richard TaylorJonas Vaznelis, Director
    
    
    
    Richard Taylor, Director and Vice
PresidentDate: September 28, 2007/s/ Michael J. KukanzaMichael J. Kukanza, Director
  38




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##### Table of Contents



EXHIBIT INDEX
 ExhibitNo.
    
    Description13
    
    Annual Report to Security Holders21
    
    Subsidiaries of Registrant31.1
    
    Certification of Paul M. Zogas pursuant to Rule 13a-14 under the
Securities and Exchange Act of 193432.1
    
    Certification of Paul M. Zogas pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2003