Exhibit 99.1 PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF INCOME MAHASKA AND MIDWEST Six months ended June 30, 1999 (in thousands, except per share data) Pro Forma Acquisition Pro Forma Mahaska Midwest Adjustments Consolidated ------- ------ ----------- ------------ Interest income: Loans .......................... $ 7,765 $ 3,772 $ (40)(1) $11,497 Loan pool participations ....... 3,548 0 0 3,548 Bank deposits .................. 51 77 0 128 Federal funds sold ............. 174 0 0 174 Investment securities - available for sale............ 873 1,108 0 1,981 Investment securities - held to maturity .................. 367 708 (20)(2) 1,055 Total interest income .......... 12,778 5,665 (60) 18,383 Interest expense: Deposits ....................... 4,647 2,378 (317)(3) 6,708 Federal funds purchased ........ 4 0 0 4 FHLB advances .................. 217 1,192 122(4) 1,531 Notes payable .................. 599 0 0 599 Total interest expense ......... 5,467 3,570 (195) 8,842 Net interest income ............ 7,311 2,095 135 9,541 Provision for losses on loans 1,632 24 0 1,656 Net interest income after provision for losses on loans ........................ 5,679 2,071 135 7,885 Other income: Service charges ................ 617 203 0 820 Data processing ................ 101 0 0 101 Other operating ................ 224 13 0 237 Investment securities gains (losses) ..................... 0 7 0 7 Total other income ............. 942 223 0 1,165 Other expense: Salaries and employee benefits . 2,591 651 0 3,242 Occupancy ...................... 699 205 0 904 Professional fees .............. 425 42 0 467 Other operating ............... 1,265 493 0 1,758 Amortization of goodwill and other intangibles ............ 288 0 249(5,6) 537 Total other expense ............ 5,268 1,391 249 6,908 Income before income taxes 1,353 903 (114) 2,142 Income taxes ................... 515 236 0(7) 751 Net income ..................... $ 838 $ 667 $ (114) $ 1,391 Earnings per share: Basic .......................... $ 0.23 $ 0.61 $ 0.29 Diluted ........................ $ 0.22 $ 0.60 $ 0.29 Average weighted shares outstanding - basic .......... 3,644 1,099 4,743 Average weighted shares outstanding - diluted ........ 3,743 1,112 4,855 (1) Represents amortization of the loan fair value adjustment for six months using effective yield method. (2) Represents amortization of the held to maturity security fair value adjustment for six months using estimated useful life of 51 months. (3) Represents amortization of the deposit fair value adjustment for six months using effective yield method. (4) Represents amortization of the FHLB advance fair value adjustment for six months using effective yield method. (5) Represents amortization of the core deposit intangible adjustment for six months using effective yield method over 10 years. (6) Represents goodwill amortization for six months using straight-line method over 25 years. 7) Represents the income tax effect of the amortization of the purchase accounting adjustments, excluding goodwill, using the current effective tax rate. Exhibit 99.1 PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF INCOME MAHASKA AND MIDWEST Six months ended June 30, 1998 (in thousands, except per share data) Pro Forma Acquisition Pro Forma Mahaska Midwest Adjustments Consolidated ------- ------- ----------- ------------ Interest income: Loans ........................ $ 7,052 $ 3,740 $ (40)(1) $10,752 Loan pool participations ..... 4,655 0 0 4,655 Bank deposits ................ 88 41 0 129 Federal funds sold ........... 223 0 0 223 Investment securities - available for sale ......... 778 1,312 0 2,090 Investment securities - held to maturity ........... 476 579 (20)(2) 1,035 Total interest income ........ 13,272 5,672 (60) 18,884 Interest expense: Deposits ..................... 4,386 2,463 (317)(3) 6,532 Federal funds purchased ...... 1 0 0 1 FHLB advances ................ 179 1,117 122(4) 1,418 Notes payable ................ 479 0 0 479 Total interest expense ....... 5,045 3,580 (195) 8,430 Net interest income .......... 8,227 2,092 135 10,454 Provision for losses on loans 287 24 0 311 Net interest income after provision for losses on loans ...................... 7,940 2,068 135 10,143 Other income: Service charges .............. 588 171 0 759 Data processing .............. 100 0 0 100 Other operating .............. 169 140 0 309 Investment securities gains (losses) ................... 26 97 0 123 Total other income ........... 883 408 0 1,291 Other expense: Salaries and employee benefits 2,330 704 0 3,034 Occupancy .................... 655 207 0 862 Professional fees ............ 249 35 0 284 Other operating .............. 895 477 0 1,372 Amortization of goodwill and other intangibles .......... 306 0 249(5,6) 555 Total other expense .......... 4,435 1,423 249 6,107 Income before income taxes ... 4,388 1,053 (114) 5,327 Income taxes ................. 1,584 333 0(7) 1,917 Net income ................... $ 2,804 $ 720 $ (114) $ 3,410 Earnings per share: Basic ........................ $ 0.76 $ 0.70 $ 0.72 Diluted ...................... $ 0.72 $ 0.65 $ 0.68 Average weighted shares outstanding - basic ........ 3,677 1,032 4,709 Average weighted shares outstanding - diluted ...... 3,881 1,102 4,983 (1) Represents amortization of the loan fair value adjustment for six months using effective yield method. (2) Represents amortization of the held to maturity security fair value adjustment for six months using estimated useful life of 51 months. (3) Represents amortization of the deposit fair value adjustment for six months using effective yield method. (4) Represents amortization of the FHLB advance fair value adjustment for six months using effective yield method. (5) Represents amortization of the core deposit intangible adjustment for six months using effective yield method over 10 years. (6) Represents goodwill amortization for six months using straight-line method over 25 years. (7) Represents the income tax effect of the amortization of the purchase accounting adjustments, excluding goodwill, using the current effective tax rate. Exhibit 99.1 PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF INCOME MAHASKA AND MIDWEST Twelve months ended December 31, 1998 (in thousands, except per share data) Pro Forma Acquisition Pro Forma Mahaska Midwest Adjustments Consolidated ------- ------- ----------- ------------ Interest income: Loans ........................ $ 15,026 $ 7,537 $ (77)(1) $ 22,486 Loan pool participations ..... 7,970 0 0 7,970 Bank deposits ................ 122 100 0 222 Federal funds sold ........... 338 0 0 338 Investment securities - available for sale ......... 1,617 2,362 0 3,979 Investment securities - held to maturity ........... 893 1,343 (40)(2) 2,196 Total interest income ........ 25,966 11,342 (117) 37,191 Interest expense: Deposits ..................... 8,999 4,925 (465)(3) 13,459 Federal funds purchased ...... 12 0 0 12 FHLB advances ................ 405 2,302 243(4) 2,950 Notes payable ................ 1,074 0 0 1,074 Total interest expense ....... 10,490 7,227 (222) 17,495 Net interest income .......... 15,476 4,115 105 19,696 Provision for losses on loans 1,179 48 0 1,227 Net interest income after provision for losses on loans ...................... 14,297 4,067 105 18,469 Other income: Service charges .............. 1,215 376 0 1,591 Data processing .............. 195 0 0 195 Other operating .............. 389 170 0 559 Investment securities gains (losses) ................... 58 118 0 176 Total other income ........... 1,857 664 0 2,521 Other expense: Salaries and employee benefits 4,796 1,349 0 6,145 Occupancy .................... 1,349 423 0 1,772 Professional fees ............ 394 84 0 478 Other operating .............. 1,797 954 0 2,751 Amortization of goodwill and other intangibles .......... 612 0 483(5,6) 1,095 Total other expense .......... 8,948 2,810 483 12,241 Income before income taxes ... 7,206 1,921 (378) 8,749 Income taxes ................. 2,583 549 -55(7) 3,077 Net income ................... $ 4,623 $ 1,372 $ (323) $ 5,672 Earnings per share: Basic ........................ $ 1.26 $ 1.31 $ 1.20 Diluted ...................... $ 1.20 $ 1.25 $ 1.15 Average weighted shares outstanding - basic ........ 3,660 1,048 4,708 Average weighted shares outstanding - diluted ...... 3,842 1,102 4,944 (1) Represents amortization of the loan fair value adjustment for twelve months using effective yield method. (2) Represents amortization of the held to maturity security fair value adjustment for twelve months using estimated useful life of 51 months. (3) Represents amortization of the deposit fair value adjustment for twelve months using effective yield method. (4) Represents amortization of the FHLB advance fair value adjustment for twelve months using effective yield method. (5) Represents amortization of the core deposit intangible adjustment for twelve months using effective yield method over 10 years. (6) Represents goodwill amortization for twelve months using straight-line method over 25 years. (7) Represents the income tax effect of the amortization of the purchase accounting adjustments, excluding goodwill, using the current effective tax rate. Exhibit 99.1 PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL CONDITION MAHASKA AND MIDWEST As of June 30, 1999 (in thousands, except per share data) Pro Forma Acquisition Pro Forma Mahaska Midwest Adjustments Consolidated ------- -------- ----------- ------------ ASSETS: Cash and due from bank $ 8,210 $1,257 $ 0 $ 9,467 Interest-bearing deposits in banks 111 814 0 925 Federal funds sold 0 0 0 0 Cash and cash equivalen $ 8,321 $2,071 0 $10,392 Investment securities: Available for sale 27,286 38,685 0 65,971 Held to maturity 13,507 21,601 143(1) 35,251 Net loans 174,388 98,794 556(1) 273,738 Loan pool participations 62,446 0 0 62,446 Premises and equipment, net 3,918 2,394 0 6,312 Accrued interest receivable 2,885 1,386 0 4,271 Core deposit intangible 277 0 1,273(1) 1,550 Unamortized goodwill 4,985 0 5,767(2) 10,752 Other assets 2,456 335 0 2,791 Total assets $ 300,469 $ 165,266 $ 7,739 $473,474 LIABILITIES AND SHAREHOLDERS' EQUITY Deposits: Demand $ 19,665 $ 616 $ 0 $ 20,281 NOW and Super NOW 31,582 7,713 0 39,295 Savings 69,499 26,281 0 95,780 Certificates of deposit 114,402 73,285 665(1) 188,352 Total deposits 235,148 107,895 665 343,708 Federal funds purchased 2,898 0 0 2,898 Federal Home Loan Bank advances 7,581 44,000 (1,240)(1) 50,341 Notes payable 14,600 0 0 14,600 Other liabilities 2,291 1,063 2,025(1)(3) 5,379 Total liabilities 262,518 152,958 1,450 416,926 Shareholders' equity: Common stock 19,038 11 5,516(4) 24,565 Capital surplus 0 1,886 11,184(4) 13,070 Treasury stock at cost (2,425) 0 0 (2,425) Retained earnings 21,445 10,375 (10,375)(4) 21,445 Accumulated other comprehensive income (107) 36 (36)(4) (107) Total shareholders' equity 37,951 12,308 6,289 56,548 Total liabilities and share- holders' equity $300,469 $165,266 $7,739 $473,474 Book value per common share $ 10.37 $ 11.13 $ 11.87 Tangible book value per share $ 8.93 $ 11.13 $ 9.29 Total Shares Outstanding 3,659 1,105 4,764 (1) Represents the mark-to-market adjustments to reflect the fair value of the Midwest tangible and identifiable intangible assets acquired and the liabilities assumed under the purchase method of accounting. Assets adjusted include investment securities, loans, and core deposit intangible. Liabilities adjusted include certificates of deposit, Federal Home Loan Bank advances. Deferred income tax liabilities have been established relating to these mark-to-market adjustments. (2) Represents the excess of market value of the Mahaska stock issued to acquire Midwest, plus transaction costs, over the fair value of the tangible and identifiable intangible assets acquired and the fair value of the liabilities assumed under the purchase method of accounting. (3) Represents the expected costs to effect the merger. These costs are estimated to be approximately $1,07'5,000 which includes $865,000 of transaction costs (including legal, accounting, and investment advisor fees) and $210,000 related to termination of employment agreements. and investment advisor fees) and $210,000 related to termination of employment agreements. (4) Represents the market value of the Mahaska stock issued to acquire Midwest plus the elimination of Midwest's stockholders' equity under the purchase method of accounting. This adjustment is based on the issuance of 1,105,348 shares of Mahaska common stock at the average market price of the stock ($16.825) during the period immediately preceding and following the public announcement of the merger.