SAMPLE VALUATION REPORT

SUMMARY

This sample report addresses the value for MidwestOne Financial Group's common stock, which is traded on the NASDAQ. It was prepared using public information to demonstrate the underlying analysis, valuation approaches, report structure, and exhibits used by Informed Decisions.

MidwestOne operates 19 branches through which it provides a full range of traditional banking services in 11 counties in eastern Iowa, its core bank franchise. Since 1988, the company has purchased nearly 130 participations in loan pools through an independent, third party that also services the loans. These loan pools are analyzed as a separate business unit, independent of the core bank.

The company's pro rata value per share would approximate the observed publicly-traded price of $19.80 as of March 31, 2006 (letter, pages 33 and 36; EXHIBIT ELEVEN). This is based on the company's aggregate value of $77.1 million (EXHIBIT NINE). The cash flows used in the present value calculation (EXHIBIT FIVE) are based on the expected growth and performance developed for the two business segments (page 25).

Separate values were developed for the loan pools and the core bank to provide a check against the aggregate value. The two values could total to more than the $77.1 million derived on an aggregate basis, depending on the assumed distributions and the level of risk assigned to the cash flows.

? LOAN POOLS: Purchases of participations in the loan pools are independent on the company's core bank operations. The investments could be funded through borrowings and the loans are serviced by an independent third party (pages 4, 8, 9; EXHIBITS TWO and THREE, pages 4 and 5). Pro forma financial statements are developed on a historical basis (page 15; EXHIBITS TWO and THREE page 12). Cash flow projections are developed (page 33) in EXHIBIT FIFTEEN. Based on this analysis, the value for loan pools could approach $10.0 million.

? CORE BANK: Most of the report focuses on MidwestOne's core bank operations and its in-market loans (EXHIBITS TWO and THREE, pages 3 through 5). Pro forma financial statements for the core bank reflect the residual balances that remain after the loan pools have been segregated (page 15; EXHIBITS TWO and THREE page 13). As reflected in EXHIBIT FOURTEEN, the core bank value could approximate $75 million.

The number of communities served, the company's expansion, and the business unit analysis caused the sample report to run longer than normal. A typical report would have less than 30 pages of writing and ten exhibits with 25 pages.

MIDWESTONE FINANCIAL GROUP, INC.

Oskaloosa, Iowa

FAIR MARKET VALUE March 31, 2006

May 1, 2006

Trustees for Company ESOP 1245 34th Street Des Moines, IA 55235

Dear Trustees:

This sample valuation was prepared as if Informed Decisions, LLC had been engaged to provide a formal valuation report to set forth the fair market value of the common stock issued by MidwestOne Financial Group, Inc. (Company) and held in its Employee Stock Ownership Plan (ESOP) as of March 31, 2006. Based on the analysis presented in the following report, if Informed Decisions had been engaged for the stated purpose, the fair market value for these shares could have been determined to be $19.80 per share.

EXHIBIT ELEVEN presents a summary of the value derived for MidwestOne Financial Group, Inc. Based on the analysis presented in the following report, the aggregate value for the Company on a publicly-traded basis would approximate $77.1 million. Given the 3.7 million shares outstanding plus an additional 80,511 shares assumed to be issued for the currently exercisable options, the pro rata publicly-traded value is calculated to be $20.36.

The Company's stock is publicly-traded on the NASDAQ National Market System. At Mach 31, 2006, the closing price was $19.80 based on trading volume of 1,900 shares. This price is 3.0% lower than the pro rata value of $20.36. This difference is not significant. Therefore, the fair market value of the Company's common stock could be set at $19.80. No discount for lack of marketability is applied.

This is a sample valuation prepared to illustrate the valuation analysis and report format used by Informed Decisions, LLC. If prepared for a client, the report would address only the fair market value of the ESOP shares as of the date shown and could not be relied on to determine the value of any other shares. The report would be provided solely for the confidential use relating to the stated purpose. As a sample report, this does constitute a fair market value opinion.

Respectfully submitted,

Richard A. Place Informed Decisions, LLC

TABLE OF CONTENTS

I. ENGAGEMENT

1

II. VALUATION GUIDELINES

1

III. COMPANY OVERVIEW

2

IV. FINANCIAL ANALYSIS

7

V. INDUSTRY, ECONOMY

18

VI. CONCLUSIONS

23

VII. FINANCIAL PROJECTIONS

24

VIII. VALUATION APPROACHES

25

IX. OTHER VALUATION FACTORS

34

X. VALUATION SUMMARY

36

APPENDICES

A. CERTIFICATION

37

B. QUALIFICATIONS

38

C. STATEMENT OF LIMITING CONDITIONS

39

D. DATA SOURCES

41

EXHIBITS

ONE TWO THREE FOUR FIVE SIX SEVEN EIGHT NINE TEN ELEVEN TWELVE THIRTEEN FOURTEEN FIFTEEN SIXTEEN

MARKET DATA (1 - 5) HISTORICAL FINANCIAL STATEMENTS (1-13) MARCH 31, 2006 FINANCIAL STATEMENTS (1-13) MARKET DEMOGRAPHIC DATA PROJECTED SUMMARY FINANCIAL STATEMENTS EQUITY CAPITAL RECONCILIATION ADJUSTMENTS TO EQUITY AND NET INCOME PRESENT VALUE CALCULATION VALUATION MULTIPLES PUBLICLY-TRADED COMPANIES (1-2) VALUATION SUMMARY LOAN POOL RUNOFF (1-2) LOAN POOL RUNOFF, REDUCED RATE OF RETURN CORE BANK PRESENT VALUE (1-2) LOAN POOLS PRESENT VALUE (1-2) DIVIDENDS PRESENT VALUE

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