Midwestone Financial Group Annual Report 2019

FY2019 Annual Report · Midwestone Financial Group

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We’re better together

201 9 An n uAl Repo Rt

“When we finally
decided to make an
offer on our house,
the day I called
MidWestOne, they
got us in that very
day. Purchasing
this house was
incredibly easy.
Our banker took
care of all of it.”

— James Bird,
midWestOne customer,
With carson & oWen

susan FarBer, midWestOne

personal and commercial

customer and memBer oF the

eastern ioWa advisory Board

“MidWestOne has been there every step of the way as we have
worked on our strategy and worked on the financing. The
support from MidWestOne has just been awesome for us. It is
very much simply better banking.”

InsIde

To Our Shareholders

Board of Directors

Financial Highlights

Consolidated Balance Sheets

Consolidated Statements of Income

Consolidated Statements of Shareholders’ Equity

Share Price

Industry changes demand innovation, personalization

Rural banking leaders say challenges bring opportunity

Customers turn to a team of treasured advisors

Trust in the future of wealth management

Growing healthy in Johnson County: Veggie Rx

Four into one: Better together

to ouR
shAReholdeRs

ChARles n. Funk, President and CEO
kevIn w. Monson, Chairman

4 MidWestOne Financial Group, Inc. 2019 Annual Report
4 MidWestOne Financial Group, Inc. 2019 Annual Report

“We grow in time to trust the future for our answers.”

— ruth Benedict

One year ago in this space, we said “what we

prepare for we shall get.” By most accounts,
we prepared well for 2019 and can report to

you that it was the best year in the 85-year history
of midWestOne Financial Group, inc. this annual
letter to our shareholders is meant to highlight our
successes—and our opportunities for improvement—
from the prior year. We will do just that, but we’ll
also look ahead to 2020. We look forward because,
perhaps more than any year in recent memory, we
sense significant change is coming to our industry.

By virtually every measure, 2019 was a full year

for the company as we completed the acquisition
of dubuque, iowa-based atBancorp on may 1,
expanding our asset base to $4.65 billion. net income
in 2019 increased to $43.63 million from $30.35
million in 2018. more significantly, earnings per share
increased 18.1 percent to $2.93 per diluted share. We
believe the most accurate assessment of our earnings
performance is to exclude the merger-related
expenses associated with the atBancorp acquisition
in 2018 and 2019. When merger-related expenses are
excluded, performance increases to $3.41 per share.

our return on assets increased to a respectable

1.04 percent for full year with a return on tangible
common equity moving up to 13.98 percent for the
year. We also made progress with our closely watched
efficiency ratio as it fell to 57.56 percent for the year.

the improvement in earnings performance
comes from several key sources. the net interest
margin held up well during what proved to be a
tough operating environment for commercial banks
as the Federal reserve reduced interest rates three
times, which was accompanied periodically by a
very flat yield curve. as evidenced by our falling
efficiency ratio, we made headway on reducing our
expense burden. the contribution from our non-
interest income producing units increased. and, last
but not least, though progress is painstakingly slow,
our credit costs lessened with a relatively smaller
provision for loan loss and fewer net charge-offs as a
percentage of total loans.

We produce more than 75 percent of our income

from the revenue associated with our deposit
gathering and lending functions. We measure the
spread between our liabilities and assets in terms of
net interest margin. as such, our margin, aided by
a strong tailwind from loan discount accretion, was
3.82 percent compared to 3.60 percent in the prior
year. We also benefited from a better earning asset
mix as atBancorp joined us with a loan-to-deposit
ratio of more than 100 percent. this increased our
loan-to-deposit ratio following the merger into
the mid-90s and it ended the year at 93 percent.
notably, our “core” net interest margin, the margin
without loan discount accretion, held up well in a
tough environment as it fell from 3.50 percent to 3.45
percent. as we move into 2020, there will be less loan
discount accretion flowing into our income statement
and we expect that the core margin will likely be in
the 3.40 to 3.45 percent range.

when we AnnounCed the AtBAnCoRp
ACquIsItIon, we immediately discussed the future
benefit to the company from our enhanced and
expanded wealth management capabilities. indeed,
we tripled the size of our trust department as we
merged the trust unit of atBancorp’s flagship bank,
american trust, into midWestOne’s. We ended 2019
with more than $1.7 billion in trust assets under
management. similarly, our investment services unit
had a strong 2019 as well, bolstered by the addition
of two investment representatives from american
trust in dubuque. Both trust and investment services
had their best performance years ever in 2019. their
outlook for 2020 is bright.

also adding to the non-interest income segment

was a strong year from our home mortgage center.
Just as american trust brought strength to our
company in Wealth management, it also brought
a seasoned and talented staff in mortgage loan
production. twenty nineteen was a strong year for
mortgage production despite a severe headwind
that was created as we wrote down the value of
our mortgage loan servicing portfolio due to falling

MidWestOne Financial Group, Inc. 2019 Annual Report 5

13.00

12.00

11.00

10.00

9.00

8.00

7.00

6.00

5.00

1.60

1.40

1.20

1.00

0.80

0.60

0.40

0.20

0.00

3.90

3.80

3.70

3.60

3.50

3.40

70.00

68.00

66.00

64.00

62.00

60.00

58.00

56.00

RETURN ON AVERAGE EQUITY (%)

FY2015

FY2016

FY2017

FY2018

FY2019

MOFG

Peer

Midwest Banks

RETURN ON AVERAGE ASSETS (%)

FY2015

FY2016

FY2017

FY2018

FY2019

MOFG

Peer

Midwest Banks

NET INTEREST MARGIN (%)

FY2015

FY2016

FY2017

FY2018

FY2019

MOFG

Peer

Midwest Banks

EFFICIENCY RATIO (%)

FY2015

FY2016

FY2017

FY2018

FY2019

MOFG

Peer

Midwest Banks

6 MidWestOne Financial Group, Inc. 2019 Annual Report

interest rates (we now service more than $1 billion in mortgage loans for
our customers). midWestOne remains committed to the mortgage loan
business as we believe this is a key to remaining a strong retail bank in
our communities.

as we look at our balance sheet, the acquisition increased our assets

substantially. at year end our total assets stood at $4.65 billion, which
was an increase from 2018’s pre-merger closing $3.29 billion. a year
ago, we wrote “the banking industry is currently in a battle for deposit
dollars” and our team at midWestOne rose to the challenge! one of
the shining successes of 2019 was the deposit performance of so many
regions in our company. in fact, each region in the “legacy” midWestOne
footprint showed an increase in deposits from the prior year end.
We believe this is vital because we have often stated in the past that
deposits are the key to our franchise value.

in terms of portfolio size, our loan portfolio did not enjoy the
same success it achieved after a robust 2018. total loans at legacy
midWestOne and at american trust were flat to down from the prior
year end. We attribute this lack of growth to several factors. We saw
higher than expected pay-downs as customers reduced debt or moved
to other institutions. about 40 percent of our footprint resides in rural
america and the economy in these areas is less than robust, thus
creating reduced loan demand. additionally, as is typical after a long
economic expansion, we declined to make loans on terms that we
considered not in our best interests. two of our twin cities regions,
along with denver and southwest Florida, showed positive loan growth
in 2019 and we remain thankful for the geographic diversification of
our company. Getting loan growth back on track is among our most
important goals in 2020.

asset quality—the quality residing in our loan portfolio—has
been a significant topic of discussion since 2016. We have reserved
for and charged off more loans than our regional and national peers
during this time. a year ago, we wrote that we believed improvement
was imminent. indeed, improvement was achieved in 2019 as net
charge-offs fell from .51 percent of total loans in 2017, to .26 percent
in 2018, and to .23 percent in 2019. While we believe this number
remains elevated for the current environment, we do note there is
improvement and believe it will continue. yet there remains work to be
done as our non-performing loans increased from $25.6 million at year
end 2018 to $46.0 million in 2019. some of this increase comes from
loans at atBancorp that came across in the acquisition; the remainder
comes from the “legacy” midWestOne portfolio, especially within the
iowa footprint. We remain extremely confident that our monitoring
procedures are strong and that the process whereby we evaluate and
“mark” our problem assets is as accurate as it has ever been. it takes
time to clean up a portfolio and while progress is slower than we would
like, we are nevertheless moving forward.

twenty nIneteen wAs A yeAR oF teChnologICAl ChAnge and,
yes, disruption in our industry. consumers continue to change their
banking habits. While our branch offices remain important, foot traffic
continues to decline while digital transactions increase. this trend is
demonstrated by the following increases from 2018 to 2019: mobile

22.00

20.00

18.00

16.00

14.00

12.00

10.00

44.00

39.00

34.00

29.00

24.00

19.00

220

200

180

160

140

120

100

mobile logins +35 percent; mobile transfers +28 percent and; mobile
deposits +32 percent.

We have increased the technology budget to bring our customers
improved and convenient banking services and products. MidWestOne
rolled out Zelle® during 2019 as a person-to-person payment service
and usage increases each month as customers become familiar with
it. We’ve also worked to make online loan application processes
easier for our customers and plan to roll out a small business online
application in 2020. Our biggest 2020 initiative is the implementation
of a new consumer banking platform, which will give our customers a
state-of-the-art experience that will simplify their banking lives. As this
publication goes to the press, we expect this platform to be “live” in the
third quarter of 2020.

Unfortunately, 95 percent of the banking industry—and this includes
MidWestOne—relies on one of three very large core processors to provide
data services. While these companies have been successful for many
years, they have grown to be very large, inefficient, and bureaucratic.
Today’s rapid rate of change challenges them, and customer service
to their banks is sometimes anything but good. Frustration levels
with these core providers are rising throughout the banking industry.
Bankers are taking a hard look at how we want to operate over the next
five to ten years, and how our core providers fit into our future growth.
The solutions will not be simple, and similar discussions should be
taking place in every banking company in the country. We will keep you
updated in future letters as to our plans. It is not an overstatement to
say our future, in part, depends on how well we navigate these currently
choppy waters.

Our culture has always been of paramount importance to us and this
is especially true as we grow. MidWestOne now operates 58 offices in five
states, and the conservation of a unified culture becomes much more
challenging as we grow. We frequently talk about our five Operating
Principles and our mission statement to “take care of our customers and
those who should be” (and remind ourselves that this means something
different in 2020 than it did ten years ago as customer habits and
preferences change). For the past seven years, we have participated in a
third-party employee survey to assess satisfaction and engagement. In
2019, the MidWestOne Iowa region was recognized as a “best workplace”
by the Des Moines Register for the seventh consecutive year. Our Denver
and Southwest Florida offices also received very strong ratings. We spent
an increased amount of time proactively communicating with our staff in
2019 about what they feel is important to them and how we can improve
the workplace environment.

Our employees support their respective communities in more ways

than we can possibly acknowledge in this space. That is because we
believe the positive actions of each one of us contributes to the success
of us all. For community bankers, it is our finest hour when we go out to
serve our communities! And we do so confident that our employer is also
doing its part to provide support to the communities that so depend on
it. MidWestOne Bank gives financial support to many worthy causes that
create opportunities in our communities. In addition to the bank’s giving,
the MidWestOne Foundation has approximately $3.85 million in assets

PRICE / LTM EPS (X)

FY2015

FY2016

FY2017

FY2018

FY2019

MOFG

Peer

Midwest Banks

DIVIDEND PAYOUT RATIO (%)

FY2015

FY2016

FY2017

FY2018

FY2019

MOFG

Peer

Midwest Banks

TOTAL RETURN PERFORMANCE

12/31/2014

12/31/2015

12/31/2016

12/31/2017

12/31/2018

12/31/2019

MidWestOne Financial Group, Inc.

NASDAQ Composite Index

SNL Midwest Bank Index

MidWestOne Financial Group, Inc. 2019 Annual Report 7

At year end, there was a growing sense of optimism that 2020 will
bring new opportunities and enthusiasm as the MidWestOne culture is
demonstrated, understood, and practiced in all locations.

Finally, we thank our board of directors. the
governance of an enterprise of this size is neither easy
nor simple. our board has been up to the task with
open, honest, and constructive dialogue throughout
the year, and it has been consistent in its support for
our management team.

We close with the affirmation that 2019 was
a year that midWestOne took a big step forward.
We are excited about the future and will continue
to move forward in a manner that represents our
shareholders’ best interests.

it remains our great privilege to serve you, our
loyal shareholders. thank you for your faithful support.

very sincerely yours,

charles n. Funk
president and chief executive officer

Kevin W. monson
chairman of the Board

and grants financial support for the arts, education,
wellness, recreation, and civic services.

we CAnnot Be MoRe AppReCIAtIve of the
fine work done by our employees in 2019. merger
integration of atBancorp’s two banks into
midWestOne Bank was anything but simple or easy.
our staff was tireless in our efforts to serve our
customers and they put in many, many hours of
overtime during the summer months. Whether in the
operations center in iowa city or on the front lines
in dubuque or Grant county, Wisconsin, we worked
together and followed our operating principle of
“working as one team.” at year end, there was a
growing sense of optimism that 2020 will bring new
opportunities and enthusiasm as the midWestOne
culture is demonstrated, understood, and practiced
in all locations.

We welcomed susan Moore to our company as
senior vice president and chief risk officer in 2019.
susan comes with seven years of experience in a
regional community bank as well as prior experience
working for a national public accounting firm. she
started fast and after just seven months is a valued
and trusted member of our senior management team.

at our annual rally day celebration, which
connected all regions by video from four sites, we
recognized eight employees with the president’s
award. these employees were: kara Arnold, assistant
retail managing officer, oskaloosa, ia; Alex Bennett,
systems administrator i, iowa city; lori Johnson,
second vice president, loan operations, iowa city;
Jess klotsche, vice president, treasury management,
denver; Melissa liska, deposit operations specialist,
iowa city; Jenny olson, community engagement
officer, iowa city; Mike Rosenthal, lead credit
analyst, osceola, Wi; and Mashawny white,
service center managing officer, iowa city. this
annual award is given at the president’s discretion
to thank and recognize employees who make
noteworthy contributions to the company, overcome
significant challenges, and do so in accordance with
midWestOne’s operating principles and culture.

8 MidWestOne Financial Group, Inc. 2019 Annual Report

MIdWesTOne FInAnCIAL GROup, InC. And MIdWesTOne BAnK BOARds OF dIReCTORs

Back row (left to right):

Front row (left to right):

Ruth e. stanoch: Corporate Affairs Consultant

Janet Godwin: Chief Operating Officer, ACT, Inc.

nathaniel J. Kaeding: Director, Business Development and Client

Kevin W. Monson: Managing Partner, Neumann Monson Architects,

Relations, Build to Suit, Inc.

PC; Chairman, MidWestOne Financial Group, Inc.

Larry d. Albert: Retired Bank Executive, MidWestOne Bank,

Tracy s. McCormick: CFO and Director, Mill Creek Development

MidWestOne Bank Board Member

Company

Matthew J. Hayek: Attorney, Hayek, Moreland, Smith & Bergus,

Jennifer Leigh Hauschildt: Vice President of Human Resources,

LLP

Uponor

Charles n. Funk: President and CEO, MidWestOne Financial Group,

Charles J. schrup III: Retired Bank Executive, American Trust,

Inc.; and President and CEO, MidWestOne Bank

MidWestOne Board Member

Richard J. Hartig: Chairman, Hartig Drug Stores

douglas K. True: Retired Senior Vice President and Treasurer,

Richard R. donohue: CFO, Acumen Advisors
Kurt R. Weise: Former Executive Vice President, MidWestOne

University of Iowa

NOT PICTURED

douglas H. Greeff: Greeff Advisory LLC Financial Group, Inc.

MidWestOne Financial Group, Inc. 2019 Annual Report 9

FINANCIAL HIGHLIGHTS
(dollars in thousands, except per share amounts)

2019

2018

2017

2016

$ 4,653,573
785,977
3,451,266
3,728,655
508,982

$ 4,201,040
669,859
3,157,127
3,362,713
452,018

$ 143,650
7,158
31,246
117,535
50,203
43,630

2.93
2.93
0.81
31.49
36.23

0.84%

0.23%

1.33%

9.65%
13.98%
1.04%
3.82%
57.56%
10.94%

$ 3,291,480
609,923
2,398,779
2,612,929
357,067

$ 3,249,718
636,362
2,354,354
2,608,725
345,734

$ 105,268
7,300
23,215
83,215
37,968
30,351

2.48
2.48
0.78
29.32
24.83

1.22%

0.26%

1.07%

8.78%
11.87%
0.93%
3.60%
61.23%
10.85%

$ 3,212,271
643,279
2,286,695
2,605,319
340,304

$ 3,097,496
641,328
2,201,364
2,503,481
334,966

$ 103,781
17,334
22,751
80,123
29,075
18,699

1.55
1.55
0.67
27.85
33.53

1.23%

0.51%

1.08%

5.58%
8.07%
0.60%
3.81%
58.63%
10.59%

$ 3,079,575
645,910
2,165,143
2,480,448
305,456

$ 2,993,875
551,383
2,161,376
2,445,363
304,670

99,606
7,983
23,434
87,806
27,251
20,391

1.78
1.78
0.64
26.71
37.60

1.01%

0.26%

1.32%

6.69%
10.30%
0.68%
3.80%
62.27%
9.92%

yeAR-end BAlAnCes
assets
investment securities
loans
deposits
stockholders’ equity

AveRAge BAlAnCes
assets
investment securities
loans
total deposits
shareholders’ equity

Results oF opeRAtIons
net interest income
provision for loan losses
noninterest income
noninterest expense
income Before income taxes
net income

peR CoMMon shARe
net income - Basic
net income - diluted
dividends
Book value
closing price

Asset quAlIty
allowance for loan losses to loans held for investment,
net of unearned income
net charge-offs to loans held for investment,
net of unearned income
non-performing loans to loans held for investment,
net of unearned income

RAtIos
return on average equity
return on average tangible equity
return on average assets
net interest margin, tax equivalent
efficiency ratio
equity to assets ratio

10 MidWestOne Financial Group, Inc. 2019 Annual Report

CONSOLIDATED BALANCE SHEETS
(dollars in thousands, except per share amounts)

Assets

cash and due from banks
interest earning deposits in banks
Federal funds sold

total cash and cash equivalents

debt securities available for sale at fair value
held to maturity securities at amortized cost

(fair value of $0 and $192,564)
total securities held for investment

loans held for sale
Gross loans held for investment
unearned income, net
loans held for investment, net of unearned income
allowance for loan losses

total loans held for investment, net

premises and equipment, net
Goodwill
other intangible assets, net
Foreclosed assets, net
other assets

total assets

lIABIlItIes And shAReholdeRs’ equIty

noninterest bearing deposits
interest bearing deposits

total deposits

short-term borrowings
long-term debt
other liabilities

total liabilities

shareholders’ equity
preferred stock, no par value; authorized 500,000 shares;
no shares issued and outstanding
common stock, $1.00 par value; authorized 30,000,000 shares;

issued shares of 16,581,017 and 12,463,481;
outstanding shares of 16,162,176 and 12,180,015
additional paid-in capital
retained earnings
treasury stock at cost; 418,841 and 283,466
accumulated other comprehensive income (loss)

total shareholders’ equity

DECEMBER 31,

2019

2018

67,174
6,112
198
73,484

785,977

-
785,977
5,400
3,469,236
(17,970)
3,451,266
(29,079)
3,422,187
90,723
91,918
32,218
3,706
147,960

43,787
1,693
-
45,480

414,101

195,822
609,923
666
2,405,001
(6,222)
2,398,799
(29,307)
2,369,472
75,773
64,654
9,875
535
115,102

$ 4,653,573

$ 3,291,480

662,209
3,066,446
3,728,655

139,349
231,660
44,927
$ 4,144,591

439,133
2,173,796
2,612,929

131,422
168,726
21,336
$ 2,934,413

16,581
297,390
201,105
(10,466)
4,372
508,982

12,463
187,813
168,951
(6,499)
(5,661)
357,067

total liabilities and shareholders’ equity

$ 4,653,573

$ 3,291,480

MidWestOne Financial Group, Inc. 2019 Annual Report 11

CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except per share amounts)

InteRest InCoMe

loans, including fees
taxable investment securities
tax-exempt investment securities
other

total interest income

InteRest expense
deposits
short-term borrowings
long-term debt

total interest expense
net interest income

provision for loan losses

net interest income after provision for loan losses

nonInteRest InCoMe

investment services and trust activities
service charges and fees
card revenue
loan revenue
Bank-owned life insurance
insurance commissions
investment securities gains, net
other
total noninterest income

nonInteRest expense

compensation and employee benefits
occupancy expense of premises, net
equipment
legal and professional
data processing
marketing
amortization of intangibles
Fdic insurance
communications
Foreclosed assets, net
other
total noninterest expense

Income before income taxes

Income taxes

net income

eARnIngs peR CoMMon shARe

Basic
diluted

12 MidWestOne Financial Group, Inc. 2019 Annual Report

YEARs ENDED DECEMBER 31,

2019

2018

$ 163,163
13,132
5,696
450
182,441

29,927
1,847
7,017
38,791
143,650
7,158
136,492

8,040
7,452
5,594
3,789
1,877
734
90
3,670
31,246

65,660
8,647
7,717
8,049
4,579
3,789
5,906
690
1,701
580
10,217
117,535
50,203
6,573
$ 43,630

$
$

2.93
2.93

$ 111,193
11,027
5,827
62
128,109

17,331
1,315
4,195

22,841
105,268
7,300
97,968

4,953
6,157
4,223
3,622
1,610
1,284
193
1,173
23,215

49,758
7,597
5,565
4,641
2,951
2,660
2,296
1,533
1,353
21
4,840
83,215
37,968
7,617
$ 30,351

$
$

2.48
2.48

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
(dollars in thousands, except per share amounts)

AiD-iN C

Ditio

A
pit
A

Y s
t

N s
t

t
AiN
E
D E

A
siv

E iN

E
D o
t

E (l

NiN

Balance, december 31, 2016

$ 11,713

$ 163,667

$ (5,766)

$ 136,975

$ (1,133)

$ 305,456

net income
issuance of common stock (750,000 shares)
dividends paid on common stock ($0.67 per share)
stock options exercised (8,750 shares)
release/lapse of restriction on rsus (27,625 shares)
share-based compensation
cumulative effect of change in accounting principle
other comprehensive loss

-
750
-
-
-
-
-
-

-
23,610
-
(83)
(576)
868
-
-

-
-
-
183
462
-
-
-

18,699
-
(8,061)
-
-
-
465
-

Balance, december 31, 2017

$ 12,463

$ 187,486

$ (5,121)

$ 148,078

-
-
-
-
-
-
(465)
(1,004)

18,699
24,360
(8,061)
100
(114)
868
-
(1,004)
$ (2,602) $ 340,304

cumulative effect of changes in accounting principle
net income
dividends paid on common stock ($0.78 per share)
stock options exercised (9,700 shares)
release/lapse of restriction on rsus (29,715 shares)
repurchase of common stock (76,128 shares)
share-based compensation
other comprehensive loss

-
-
-
-
-
-
-
-

-
-
-
(68)
(635)
-
1,030
-

-
-
-
204
547
(2,129)
-
-

57
30,351
(9,535)
-
-
-
-
-

Balance, december 31, 2018

$ 12,463

$ 187,813

(6,499)

$ 168,951

(57)

-
30,351
(9,535)
136
(88)
(2,129)
1,030
(3,002)
$ (5,661) $ 357,067

-
-
-
-
-
-
(3,002)

net income
issuance of common stock due to business combination

(4,117,536 shares), net of offering expenses

and liquidity discount
dividends paid on common stock ($0.81 per share)
release/lapse of restriction on rsus (31,354 shares)
repurchase of common stock (166,729 shares)
share-based compensation
other comprehensive income

43,630

4,118
-
-
-
-
-

109,236
-
(815)
-
1,156
-

-
-
712
(4,679)
-
-

-
(11,476)
-
-
-
-

-
-
-
-
10,033

113,354
(11,476)
(103)
(4,679)
1,156
10,033

Balance, december 31, 2019

$ 16,581

$ 297,390

$ (10,466)

$ 201,105

$ 4,372

$ 508,982

SHARE PRICE

2017
First Quarter
second Quarter
third Quarter
Fourth Quarter

2018
First Quarter
second Quarter
third Quarter
Fourth Quarter

hIgh
$ 38.56
$ 36.72
$ 35.63
$ 37.94

hIgh
$ 34.99
$ 34.75
$ 35.20
$ 34.83

low
$ 33.25
$ 32.92
$ 31.93
$ 30.56

low
$ 30.70
$ 31.94
$ 31.92
$ 23.80

CAsh dIvIdend
deClARed
$ 0.165
$ 0.165
$ 0.170
$ 0.170

CAsh dIvIdend
deClARed
$ 0.195
$ 0.195
$ 0.195
$ 0.195

2019
First Quarter
second Quarter
third Quarter
Fourth Quarter

hIgh
$ 32.47
$ 29.54
$ 32.06
$ 39.03

low
$ 24.63
$ 25.67
$ 26.51
$ 28.66

CAsh dIvIdend
deClARed
$ 0.2025
$ 0.2025
$ 0.2025
$ 0.2025

MidWestOne Financial Group, Inc. 2019 Annual Report 13

Industry changes
demand innovation,
personalization

There’s an old saying about midwestern

weather: Wait five minutes and it will do
something different. at the start of this new
decade, the same might be said about the banking
industry, where change is now constant, rapid, and
far-reaching.

challenges and opportunities are the rapidly
changing technological offerings and the variety of
new competitors we face,” he says. “We need to stay
on the forefront and provide an excellent branch
customer experience as well as offering robust digital
banking solutions.”

looking ahead, midWestOne leaders see the most

profound banking-industry changes occurring in
three overlapping spheres:

•

technology that results in an improved customer
experience and internal process efficiencies

customer expectations for online and mobile
banking tools that are simple, swift, and secure

competition from large and well-branded
national banks, as well as nonbanks and
alternative lending institutions

When it comes to technology, senior vice
president and chief information officer John henk
is enthused about midWestOne’s new digital banking
platform, which will be introduced to customers
later this year.

“to maintain strong personal relationships
with our customers, we need to provide quality
experiences with every interaction, regardless of the
channel,” he says. “our new platform will provide a
consistent end-to-end digital experience tailored to
meet individual needs. it will also allow us to adapt
quickly during a time of ongoing innovation and shifts
in consumer preferences.”

executive vice president for retail Banking dave

lindstrom is focused on the customer experience
as well — and also on the competition. “our biggest

14 MidWestOne Financial Group, Inc. 2019 Annual Report

For senior regional president Mitch Cook, new
technology is about working smarter. one example
is lending cloud, a cloud-based lending system that
allows mitch and his team to process commercial loan
applications much more quickly, with fewer steps
and an automated workflow system. “there are lots
of reasons for adopting new technology,” says cook,
“but the key is to use it to achieve more efficiency.”

president and ceo charlie Funk believes

midWestOne is adapting well to industry changes. But
challenges remain. “We know we need to simplify,
and it’s hard to give up some of what we’ve always
done because it’s no longer relevant,” he says. and
yet, much of what midWestOne has always done,
Funk believes, is key to the bank’s ongoing success.

“We believe we differentiate ourselves with

our strong culture, our people, and our operating
principles,” Funk says. “this is how midWestOne, as
a community bank, will separate ourselves from the
competition.

“our strategic plan says it all,” he continues. “it’s
our people who produce the results and keep our four
constituencies happy: our customers, our employees,
our communities, and our shareholders. We’re very
optimistic about the future.”

John henk
charlie Funk
dave lindstrom
mitch cook

“There are lots of reasons for adopting new technology,
but the key is to use it to achieve more efficiency.”

— mitch cooK, senior reGional president

MidWestOne Financial Group, Inc. 2019 Annual Report 15

Rural banking leaders say
challenges bring opportunity

“Embracing change is critical and will allow our bank
to continue to grow while helping our customers have greater success.”

— ELDON ZUMBACH, FIRST vICE PRESIDENT, MARkET PRESIDENT AND REGIONAL CREDIT OFFICER, BELLE PLAINE

16 MidWestOne Financial Group, Inc. 2019 Annual Report

as the crow flies, it’s about 110 miles from Belle plaine to
dyersville, iowa, and eastward to the platteville area in
Grant county, Wisconsin. all three communities depend
to a large extent on the local agricultural base, and all are
home to branches of midWestOne.

W hile these communities differ in many ways,

they share an ag economy that has faced
significant headwinds in the past year. changing
consumer demands, a slowdown in worldwide
economic growth, unpredictable weather patterns,
the trade war with china — all are impacting farmers’
bottom lines and the economic health of their
communities.

nevertheless, midWestOne’s banking leaders in

Belle plaine, dyersville, and southwest Wisconsin
remain optimistic about the year ahead.

“uncertain economic times require flexibility

and faith in our bank’s foundation of providing
quality products and services,” says eldon
Zumbach, First vice president, market president
and regional credit officer at midWestOne in Belle
plaine. “embracing change is critical and will allow
our bank to continue to grow while helping our
customers have greater success.”

Zumbach, who has been with the Belle plaine
bank since 1991 and oversees ag and commercial
lenders in his region, acknowledges that ag
customers are facing serious challenges, from high
production costs to what he describes as markets
that “continue to trade in a sideways pattern.” he’s
also concerned about barriers to younger farmers
wishing to take over family operations or start
their own.

But he believes these difficulties can be
overcome by continuing to work closely with
midWestOne customers and their communities.
it’s this ear-to-the-ground approach that helps
Zumbach and his team stay in touch with their
customers and attuned to emerging opportunities.

“challenges exist in our present economy,
but it’s important to also recognize the successes
and growth we continue to see with customers
and our community,” Zumbach says. “midWestOne

MidWestOne Financial Group, Inc. 2019 Annual Report 17

employees are actively involved in our communities,
and we have the expertise in place to be a valued
partner in their ongoing success by continuing
to support and guide our customers. customers
appreciate our product offerings, including new
technology that allows them to take advantage of
the bank’s easy access to online banking methods.

“communicating proactively is the best way
to support our customers through difficult times
and our ever-changing economy,” he continues.
“it’s imperative for us to identify customer needs
and help them achieve their goals with the right
products and banking solutions. Working alongside
our neighbors is crucial to keeping our communities
and our bank strong.”

pat hogrefe, midWestOne regional president
for the iowa east region in dyersville/Farley, credits
a diverse economy for his communities’ relative
stability in changing times.

“our area has weathered the decline in

commodity prices fairly well, as we are surrounded
by some of the highest quality farm ground in iowa,”
hogrefe says. “that’s kept land prices strong and
allowed for some farmers to reset their balance sheets
to continue to operate in the current ag environment.

“We also are very fortunate to have a biodiesel

plant in Farley and an ethanol plant in dyersville,” he
says, “along with many other agri-businesses located
in and around our area, so we have a nice mix here of
commercial and agricultural customers.”

and then there’s the Field of dreams, dyersville’s

number-one tourist attraction, where major league
Baseball is building an 8,000-seat stadium for a White
sox-yankees game in august 2020. hogrefe says the
project has led to downtown revitalization efforts as
well as a boost in the local hospitality industry; the
game and surrounding festivities are expected to
draw upwards of 40,000 visitors.

18 MidWestOne Financial Group, Inc. 2019 Annual Report

pat hogrefe
eldon Zumbach
Kevin raisbeck

“I believe we need to hit change head-on, and to do so with an
optimistic attitude. That is what we have done through the recent
merger, and we have been successful because of it. I believe strongly in
[MidWestOne’s] core principles, and believe they will help lead MWO to
continued success.”

— Kevin raisBecK, reGional president, southWest Wisconsin reGion

For hogrefe, embracing change covers a

diverse and dynamic array of customers, needs, and
opportunities. on the ag side, he and his colleagues
work with their local usda Farm service agency to
help mitigate both credit and interest rate risks for
the bank’s farm customers. on the commercial side,
the bank plays a role in economic growth by helping
to recruit new businesses and support quality of life
initiatives, such as recreational trails.

he also believes the bank’s familiar and
experienced staff helps ensure a smoother ride in
changing times.

“the stability in our workforce during the
transition to midWestOne from american trust &
savings Bank, seeing the same smiling faces, and
knowing the bank has confidence that everything will
be fine in the long run — all have given our clients
reassurance that while change can be difficult,”
hogrefe says, “it will get better over time, and we’ll be
here for them.”

like pat hogrefe, kevin Raisbeck joined
midWestOne as part of the merger with american
Bank & trust - Wisconsin, where he was president
and ceo. today, he serves as regional president of
midWestOne’s southwest Wisconsin region, which
encompasses Grant county and includes offices in
Fennimore, lancaster, platteville, and cuba city.

Bordered by the mississippi river and nestled
in heart of the scenic driftless area, Grant county’s
landscape is different from pastoral Belle plaine —
and the ag economy is different, too. dairy dominates
here, an industry some have deemed to be in crisis.
americans are drinking less milk, while large national
retailers are entering the market, impacting small
and large dairy operations alike. dean Foods and
Borden dairy — among the best-known brands in the
business — both filed for bankruptcy in 2019.

raisbeck acknowledges these realities at the
local level. “our farm economy continues to struggle,”
he says. “commodity prices and cost of production
have tightened many cash flows. although many of
our clients have weathered the challenging ag times
well, others are still modifying their operations.
But as we look into 2020, with dairy market prices
growing, we are optimistic that stronger cash flows
are coming.”

in the meantime, raisbeck and his team also
have turned to the Farm service agency’s guaranteed
loan program. “this helps protect the bank with a 90
percent government guarantee on loans to producers
that are experiencing more challenging financial
times,” raisbeck says.

Besides feeling hopeful about the potential
for some stabilization and rising prices in the ag
economy, raisbeck is certain that midWestOne’s core
values and local focus will help its customers and
their communities weather whatever changes this
new decade might bring.

“i believe we need to hit change head-on, and to
do so with an optimistic attitude,” raisbeck says. “that
is what we have done through the recent merger, and
we have been successful because of it. We continue
to focus on our core operating principals: taking good
care of our customers, hiring and retaining excellent
employees, always conducting ourselves with the
utmost integrity, working as one team, and learning
constantly so we can continually improve.

“i believe strongly in these core principles, and
believe they will help lead mWo to continued success.”

MidWestOne Financial Group, Inc. 2019 Annual Report 19

“Our main competitive advantage is our customer service.
Some businesses don’t realize the service they aren’t getting at their
current bank until they meet us and our team, and they see first-hand
what it’s like to have a true banking relationship.”

— Jessica Klotsche, vice president, treasury manaGement, denver

renee smith-laBarge
Kevin pleasant

20 MidWestOne Financial Group, Inc. 2019 Annual Report

Customers turn to a team
of treasured advisors
If you ask the average person to define “treasury

opinion, my role as a team leader embodies what a
community bank is all about, and what midWestOne
is willing to do to take care of its customers.”

management,” you’ll hear answers referencing
everything from Fort Knox to the irs.

Jessica klotsche serves as midWestOne ’s vice

the concept of treasury may have multiple
interpretations, but it’s always about valued assets.
in the banking industry, treasury services are about
protecting, managing, and maximizing the financial
assets of small and large businesses, government
agencies, and other institutions.

treasury management at midWestOne is a highly
specialized area offering products and services that are
essential to operating a successful business in today’s
economy. they include business analysis, interest
bearing and investment accounts, line of credit and
Zero Balance account products, business online and
mobile banking, automated clearinghouse and wire
services, merchant processing services, commercial
credit card management opportunities, and more.

When it comes to protecting and managing
assets, any business owner will tell you that it’s not
enough to have sophisticated tools at your disposal.
you also need a banking partner with the necessary
knowledge and experience — and, perhaps most
important, with a commitment to providing personal
service tailored to each customer’s unique needs.

“midWestOne offers many of the same treasury

management and payment solutions provided by
other large banks,” says kevin pleasant, midWestOne
senior vice president, treasury management.
“What makes us different is how the delivery of
these services looks and feels, aligned with our core
operating principle to ‘work as one team.’”

pleasant leads a group of seasoned professional

bankers throughout the midWestOne footprint.
Working together, the team actively shares proven
business practices with their customers to improve
efficiencies, optimize liquidity, leverage technology,
and mitigate risk of losses from fraudulent activities.

“this is what makes community banks innovative

and attractive in this era of banking strategy,
which has been riding the wave of specialization
and industry segmentation,” pleasant says. “in my

president, treasury management, in the denver
area, where she and her team have grown their core
deposits from zero to more than $55 million in under
three years. she describes the denver customer
base as primarily commercial, including contractors,
manufacturers, distributors, service companies, and
even charter schools. and she agrees with pleasant’s
observations about why midWestOne is the preferred
choice among many business customers.

“our main competitive advantage is our
customer service,” she says. “We consistently work
as one team not only to win the business, but to
serve the customer during and after the transition.
some businesses don’t realize the service they aren’t
getting at their current bank until they meet us and
our team, and they see first-hand what it’s like to have
a true banking relationship.”

“midWestOne is the perfect business bank for

the denver market, especially after the recent bank
mergers and acquisitions,” says Klotsche. “We offer
the expertise, service, and systems that almost any
business would appreciate and benefit from in this
environment.”

in iowa, the story is much the same. “our
customer care model focuses around the concept
of creating a meaningful partnership with our
business customer,” says Renee smith-laBarge, vice
president, treasury management, who is based in
north liberty and serves as sales team leader for the
iowa and southwest Wisconsin markets.

“We want our customers to view us as their trusted

advisor,” smith-laBarge says. “treasury management
sales team members are experts in their field, and
strategically collaborate with our customers as well as
commercial and retail bankers to proactively address
challenges impacting their business.

“our goal is to ensure that our customer is the

number-one priority in everything we do.”

MidWestOne Financial Group, Inc. 2019 Annual Report 21

“MidWestOne’s original legacy Trust Department was founded in 1936, around the same time as
American Trust’s. We are culturally well-aligned with shared histories as family-owned banks,
strong commitments to our communities, and a practice of developing talent from within.”

— THAIS WINkLEBLACk, SENIOR VICE PRESIDENT AND TRUST DEPARTMENT MANAGER

Trust in the future
of wealth management
In late 2019, the American Bankers Association

released The Changing Face of Wealth
Management, a comprehensive report examining

what the ABA calls the largest intergenerational
wealth transfer in history. By 2043, an estimated $68
trillion will pass from the Baby Boomers to succeeding
generations, principally Gen Xers and Millennials.

Those younger generations, says the ABA, have
very different spending, savings, and lifestyle habits.
They’ll also be living longer, meaning that Thais
Winkleblack, MidWestOne’s Senior Vice President
and Trust Department Manager, and her colleagues
could soon be serving customers representing five
generations in a single family. That’s a daunting
prospect, but it’s also one in which Winkleblack sees
enormous potential.

With the recent merger with ATBancorp,
MidWestOne now has far more capacity to reach
and serve a larger customer base. The merger more
than tripled the assets under Trust Department
management, from roughly $415 million before the
merger to about $1.67 billion today, and doubled the
size of the Trust Department staff. Just as important,
Winkleblack says, the merger brought together a
diverse array of skills and capabilities that she feels
are precisely suited to this pivotal moment in the
banking industry.

Thais Winkleblack
kirk Metzger
Ryan Bryte

22 MidWestOne Financial Group, Inc. 2019 Annual Report

“Everything we’re reading and hearing about the

Minimizing disruption in the bank-client

relationship is always desirable, but especially so in the
area of Trust and Wealth Management, where — as the
name implies — trust is of paramount importance.

“The Trust Department serves several key
constituencies,” Winkleblack says. “We handle
investments and all other assets, such as real estate
and other property, for people who may be traveling.
We do the same for people who are aging and want a
fiduciary to take care of their affairs, and for people
who don’t have the capacity to handle their own
affairs. These clients ask us to act on their behalf to
handle not just asset management, but a variety of
other transactions.”

For example, clients may want to set up an

educational trust for their grandchildren. Or they
may establish a charitable trust to benefit future
generations, and want a trustee to act on their behalf.
In these cases, says Winkleblack, “we may be handling
the affairs of people who are no longer with us, and
our relationship is with the beneficiaries of the trust,
whether that’s nonprofits or family members.”

Bottom line, says Winkleblack, “our job is to take
care of our clients the way we would care for our very
own grandparents.”

Looking ahead, Winkleblack will continue to
focus on building a culture that emphasizes the four
pillars of Trust. But she’s also encouraging the pillars
— and the people who represent them — to work
together more closely, understand one another’s
strengths and challenges, and solve problems
through collaboration and innovation.

“In the past, you made sure to hire and develop

Trust team members with very specific areas of
expertise,” Winkleblack says. “That’s always going to
be true because it’s a highly technical business. At the
same time we have to work on having a culture where
there are constant small improvements. That’s the
mindset we’re trying to instill, and it’s exciting to see
the shift starting to happen.”

With such positive attitudes in place, it’s safe to

say this MidWestOne team trusts in a bright future.

future of Trust and Wealth Management indicates
we need to be more client-driven, proactive, and
holistic,” says Winkleblack. While both MidWestOne
and ATBancorp have long been customer-centric,
each team brought distinct strengths in the areas of
proactive customer relations and taking a holistic
approach to customer service, all of which will serve
the bank well in the years ahead.

Winkleblack helped lead the merger of the two
Trust teams, which she describes as “fun, exciting,
frustrating, and intellectually challenging.” It
helped that the two entities had much in common.
“MidWestOne ’s original legacy Trust Department was
founded in 1936, around the same time as American
Trust’s,” Winkleblack says. “So both banks were among
the first in the state to operate Trust departments, and
now we’re among the largest in terms of assets.

“We are culturally well-aligned with

shared histories as family-owned banks, strong
commitments to our communities, and a practice
of developing talent from within,” she adds. “Those
were the fundamental pieces that made it easier for
us to bridge.”

Ryan Bryte, Vice President, Trust Business
Development, agrees. “We’ve been able to create a
‘best of the best’ approach using strategies from both
teams, and thereby providing a stronger platform for
our clients.”

Bryte, who is based in Dubuque, also oversees

customer relationship management, which
Winkleblack describes as one of the “four pillars
of Trust.” They include operations, or the nuts and
bolts of Trust department products and services;
fiduciary administration, which deals with client
servicing and legal requirements; and investment
portfolio management.

Kirk Metzger, First Vice President and Trust
Department Manager, also located in Dubuque, works
in the area of fiduciary administration. He joined
MidWestOne just as the merger was getting under way.

“One of my responsibilities was to ensure
continuity of service through that time of change,
and to help the team members grow to understand
MidWestOne’s culture and operating principles,”
Metzger says. “The entire Trust group has embraced
the ‘work as one team’ concept, and integration has
been going very well. Our clients and team members
have taken the resulting changes in stride.”

MidWestOne Financial Group, Inc. 2019 Annual Report 23

GroWinG healthy in Johnson county:

Veggie Rx

W hile midWestOne has been addressing

changes in consumer banking preferences
and demographics, it has also been aware
of the emerging needs in the communities it serves.
one such trend has been an unsettling increase in food
insecurity and diet-related chronic health conditions.

in 2019, midWestOne stepped up to help bridge

the nutrition quality gap and balance health inequity
in Johnson county, iowa, with a $50,000 community
impact Grant for the veggie rx pilot program. “the
bank’s community grant opportunity happens every
year,” explains Kaila rome, executive director of the
north liberty community pantry. “i reached out to
John this year to see if there was something we could
do together.”

John is John Boller, executive director of the
coralville community Food pantry. “i knew a few
independent organizations were doing smaller
iterations of a veggie rx program, but no one was
collaborating utilizing several different disciplines to
make it happen,” he says. “midWestOne’s community
impact Grant seemed a perfect catalyst.”

the first of its kind in iowa, veggie rx offers a
three-pronged approach to the food insecure dealing
with chronic health conditions:

1. regular, coordinated access to fresh fruits and

vegetables grown by local farmers

2. professional, individualized dietary guidance

3. demonstrations of healthy food shopping,

preparation, and use

the success of veggie rx lies in the unique,
integrated partnership of the coralville community
Food pantry, the north liberty community pantry,

the university of iowa health care’s upstream clinic,
the ui carver college of medicine’s mobile clinic,
the Johnson county local Foods coordinator, and a
growing number of local fruit and vegetable farmers.

“our partnership with the food pantries
launched an overdue attempt to unite community
food production and distribution with identification,
education, and tailored food interventions that
impact health outcomes of ‘at risk’ populations,” says
dr. craig syrop, professor emeritus, ui carver college
of medicine. “By partnering with a health care system,
traditional food pantries are made more powerful and
can serve as an access point for care and enhanced
disease self-management.”

the ui mobile clinic visited the food pantries
in coralville and north liberty offering free health
screenings. then, clinicians determined who
would benefit from the veggie rx program. the
population served by the food pantries is diverse
in race and ethnicity, age, and life circumstances.
in addition, nearly half of surveyed clients had
a condition, such as hypertension, that could be
improved by a better diet.

the veggie rx program engages up to 40 food-
insecure individuals with diet-modifiable diseases in a
26-week csa (community supported agriculture) fruit
and vegetable share, in an attempt to increase their
fruit and vegetable intake and reduce the negative
impacts of their disease(s). once enrolled, participants
receive their weekly “veggie prescription,” containing
a variety of nutrient-dense fresh fruits and vegetables
grown by neighboring sustainable farms. each weekly
prescription is accompanied by dietitian-approved
recipes and food preparation tips.

24 MidWestOne Financial Group, Inc. 2019 Annual Report

“I knew a few independent organizations were doing smaller iterations of a veggie Rx
program, but no one was collaborating utilizing several different disciplines to make
it happen. MidWestOne’s Community Impact Grant seemed a perfect catalyst.”

— John Boller, eXecutive director, coralville community Food pantry

pJ Guayara, coralville community pantry
megan lehman, mWo
John Boller, coralville community pantry
Kaila rome, north liberty community pantry
ilsa deWald, Johnson county Foods coordinator

the community impact Grant funds also allow

participants attending veggie rx educational
activities to take home cooking or gardening supplies.
the skills learned are more likely to be retained and
used beyond the program if participants have access
to proper equipment.

as part of the community impact Grant,

midWestOne employees have the unique
opportunity to volunteer and help establish the
veggie rx program, setting it up for lasting success.
“our expectation for community impact Grant
activities has been that everybody volunteers for
something,” says Megan lehman, assistant retail
manager, midWestOne Bank in coralville. volunteer
activities range from helping local csa farmers at
harvest time to assisting the food pantries with
stocking and delivery.

amanda vincent, carmen Black, maja Black, lisa Gachara, John Boller,
Kaila rome, megan lehman, ilsa deWald, molly schintler, Joyce Wahba

veggie rx will continue to support midWestOne’s

neighbors by improving the health of everyone
touched by the program, in the same way
midWestOne employees believe that the positive
actions of each one contribute to the success of all.

MidWestOne Financial Group, Inc. 2019 Annual Report 25

Below:
Larry Albert
kevin Monson
Dick Donohue

26 MidWestOne Financial Group, Inc. 2019 Annual Report

“ATBancorp and MidWestOne both make customers the highest priority
in everything they do. They value human capital and professional
development and recognize extraordinary service.”

— (FAR lEFT) NJ SCHRuP, FOuNDER OF AMERICAN TRuST AND SAVINGS BANk.
(lEFT) CHARlES J. SCHRuP III, GREAT-GRANDSON OF NJ, FORMER VICE CHAIRMAN OF ATBANCORP,
FORMER CO-CHAIRMAN OF THE AMERICAN TRuST AND SAVINGS BANk BOARD,
AND MEMBER OF THE MIDWESTOne BOARD OF DIRECTORS.

Four into one: Better together

MidWestOne President and CEO Charlie Funk

began his 2019 Rally Day speech with a
history lesson.

In quick succession, he lauded the four
strong community banks — and their founders
— that came together to form the single entity
we recognize today as MidWestOne. With the
completion of the ATBancorp acquisition last year,
several MidWestOne board members shared their
thoughts on the bank’s evolution.

Richard R. “Dick” Donohue joined the board of

“the old MidWestOne ” in Oskaloosa, Iowa, in 1999. He
founded what grew to be a large and successful CPA
firm there in the late 1970s, and partnered with the
bank on numerous community projects. He was on
hand when ISB Financial (the “old” Iowa State Bank &
Trust of Iowa City) merged with MidWestOne in 2008.

Over the years, Donohue has been impressed
by gains in MidWestOne’s size, markets, talent, and
opportunity. “Our senior management has done an
exceptional job of managing each integration process,”
he says. “Through it all, our focus has stayed on being
a partner to our customers in their path to success.”

Larry D. Albert served for 19 years as CEO

of Central Bank until the MidWestOne merger in
2014. “I was just getting ready to retire when the
deal came about,” he says, “so the timing worked
out very well.” Following the 2008 financial crisis,
Central purchased several smaller banks, and Albert
was accustomed to the challenges of integrating
processes, people, and cultures.

“You’ll encounter bumps along the road any time

you do an acquisition,” Albert says, “but over time,

the advantages far outweigh any initial difficulties.
We’re seeing the benefits now of having a larger
footprint and being in diverse markets, including
Denver and Florida. These days, when size and scale
matter more, MidWestOne is in a very solid position.”

Charles J. “Chuck” Schrup III is the great-
grandson of American Trust founder NJ Schrup, and
was Vice Chairman of ATBancorp and Co-Chairman
of the Board for American Trust and Savings Bank
of Dubuque when it was acquired by MidWestOne
Financial Group in 2019. He cites the entities’ many
complementary skills and strengths, and sees their
commonalities as central to the merger’s success.

“The ATBancorp and MidWestOne values and
cultures are a good fit for each other because both
are committed community banks with similar ideals,”
Schrup says. “Both make customers the highest
priority in everything they do. They value human
capital and professional development and recognize
extraordinary service.”

Kevin W. Monson, principal at Neumann Monson

Architects of Iowa City, is in his 10th year as chair
of the MidWestOne Board of Directors, and has
witnessed the steady progress from community bank
to regional powerhouse. “Change and diversity can
be scary because it’s the unknown,” Monson says,
“but it really has helped increase our value.

“With every merger, I am amazed at the quality

people and the expertise we acquire. And it also
allows our people to expand their worth to the
company by growing into new roles that they may
not have known were in the mix. When these mergers
happen, there are good opportunities for everyone.”

MidWestOne Financial Group, Inc. 2019 Annual Report 27

TRAnsFeR AGenT/dIvIdend
pAyInG AGenT

GeneRAL COunseL

IndependenT ReGIsTeRed
puBLIC ACCOunTInG FIRM

American Stock Transfer
& Trust Company, LLC
6201 15th Avenue
Brooklyn, New York 11219

Barack Ferrazzano kirschbaum
& Nagelberg LLP
200 West Madison Street, Suite 3900
Chicago, Illinois 60606-3465

RSM US, LLP
400 Locust Street
Suite 640
Des Moines, Iowa 50309

“My wife I
were drawn to
MidWestOne by the
Power Checking. We
were tired of having
money in our
checking account
and not earning any
interest for us.”

— ADAM AND SHANNON
HAHN, MIDWESTOne
CUSTOMERS

MidWestOne Financial Group, Inc.

Direction:

Writing:

Peggy Hudson, MidWestOne Bank

Shullaw and Associates, Iowa City, IA

Photography:

fisheye, Hiawatha, IA

Design:

Printing:

Denver Image Photography, Denver, CO

Benson & Hepker Design, Iowa City, IA

Tru Art, Iowa City, IA

Corporate Headquarters
102 S Clinton Street
Iowa City, Iowa 52240
800-247-4418

MidWestOne.bank
nAsdAQ symbol: MOFG