2020 MidWestOne Financial Group, Inc. Annual Report

At year end, there was a growing sense of optimism that 2021 will bring new opportunities and enthusiasm as the MidWest One culture is demonstrated, understood, and practiced in all locations.

What will this look like? We must return to organic loan growth. Despite poor economic conditions in 2020’s fourth quarter, we were able to grow our core loan portfolio. In this era of very low interest rates and low net interest margins, this is a must. As stated earlier, we will continue to provide the resources necessary to grow our wealth management business. We believe this will allow us to continue to move toward our strategic goal of non-interest income rising as a percentage of total revenues. We believe 2021 will be a good year, though less robust than 2020, for the Home Mortgage Center. We continue to believe we have room to expand our reach in this unit, especially in the Twin Cities. Our expense management has been good, as evidenced by an efficiency ratio of 56.92% in 2020. We will continue to evaluate the appropriate amount of offices necessary to serve our customers. We have closed five banking offices in the last two years with very minimal customer disruption. We will exercise prudence with this analysis. One more note concerning technology: We all realize how essential good technology is to our ongoing operations. We must collectively be challenged to improve our use of technology each day. This is how a company leverages technology. We applaud and thank our staff for their hard work, perseverance, and dedication to our cause in 2020. It was not easy with many days filled with uncertainty and some, yes, with fear. But, together, we stayed the course. We stayed the course buoyed by our five Operating Principles. These Principles are discussed often and are at the core of what we do and who we are. For the eighth consecutive year, MidWest One —Iowa was named as a “Top Workplace” by the Des Moines Register . We were the highest rated commercial bank in the mid-sized company category. Our Twin Cities region received recognition as a “national standard” workplace and our engagement in this region showed good improvement from past years. And our Florida and Colorado regions recorded scores among the highest in our company. Our culture is important to us and is only strong because we have so many who model it in their daily lives. We welcomed a new President and Chief Operating Officer, Len D. Devaisher, who joined us in July. Len has won over our staff with his strong communication skills and banking acumen. He has a long and successful career in banking in the Midwest.

In October, we convened our annual Rally Day event in a remote setting. At this event, we recognized seven employees as winners of the President’s Award. These employees were: Joe McKenna, VP/ Mortgage Banker, Dubuque, IA; Joel Larsen, Regional President, Hudson, WI; Sandy Bailey, Market President, Oskaloosa, IA; Thais Winkleblack, SVP/ Trust Department Manager, Iowa City, IA; Nate Sojka, Systems Administrator II, Newport, MN; Sam Fordyce, Assistant Retail Manager, Iowa City, IA; Valerie Pullen, Trust Administrator, Dubuque, IA. We thank our Board of Directors, which has stood behind our efforts through thick and thin. This talented group spends many hours with the goal that their contributions help steer this corporate ship in the right direction. Finally, we end with a look back to last year’s letter when we wrote that the past year was “a year when MidWest One took a big step forward.” We think 2020 will someday be regarded as a year when we put our shoulder to the wheel and did what we needed to do to serve customers, employees, and communities. In 2021, we must move forward with resolve to produce good returns for our shareholders. We believe we have the team to do just that. It remains our great privilege to serve you, our loyal shareholders. Thank you for your faithful support.

protect the integrity of this portfolio. Let’s look at the numbers: • Our non-performing loans to total loans increased slightly from 1.21% at year-end 2019 to 1.23%. This flatness in ratio masks much improvement that was made during the year as we were able to resolve many problem assets. In December 2020, we added one $9.5 million hotel loan to the non-performing list that has been affected by the Pandemic. We believe we are fully reserved on this loan. • Our net charged-off loans as a percent of average loans outstanding were 0.15% in 2020, our best performance in five years. • As mentioned above, our allowance for credit losses ended the year at a strong 1.72%, ex-PPP. This is up from 0.84% a year ago. We believe these numbers combined with our staff’s vigilance will serve us well no matter what comes in 2021. As we look to the future, we begin with technology. The Pandemic forced us to re-direct our efforts to improve and enhance our technology. A new consumer banking platform was launched on September 28, 2020. No major technical issues were experienced during the conversion and services were brought online as scheduled. This implementation represented a significant commitment of resources and streamlined or provided many new features for our customers. These include improved security, new debit card controls, simpler person-to-person payment options, streamlined external transfers, self- service password resets, new personal finance tools, and more. The flexibility of the new platform ensures that as customer needs and preferences change, we will be able to change with them. This is but the beginning of this journey, and we look forward to leveraging this technology as we place increased emphasis on listening and responding to the voice of the customer.

There was also a concerted effort to rapidly adopt new customer facing systems that allowed us to efficiently administrate customer needs associated with the Payment Protection Program. The nature of this implementation demonstrated the value in maintaining a structure that can support the rapid deployment of best-in-class solutions. Additionally, our ability to remotely support customer needs and preferences using digital signatures and other tools increased dramatically. We anticipate that this digital acceleration will continue and have applied these same lessons internally. Increased emphasis was placed on a full buildout of an end-to-end workflow and electronic content management solution to improve customer service and efficiency. Adding to this, infrastructure enhancements to increase resiliency and flexibility were also completed according to schedule. We can confidently say that through the implementation of these internal technologies, we have saved many thousands of hours in staff time to perform various functions. As we move into 2021, our technology roadmap includes identification and implementation of additional virtual delivery capabilities based on customer need and preference. Our goal is to enhance engagement and personal service delivery as digital expectations grow. Other priorities include enhancements to the online account origination experience as well as mobile deposit feature enhancements. Further, we must improve our ability to access our wealth of data and improve our business intelligence function. This will allow us to evaluate data contextually in real-time. Not only will this aid in identifying customer preferences to facilitate a more personalized experience but will also improve our ability to identify which actions will support financial performance objectives. For MidWest One , 2021 shapes up to be another year of change. We’ve added management depth over the past few years and we are poised to move forward as a company.

Very sincerely yours,

Charles N. Funk Chief Executive Officer

Kevin W. Monson Chairman of the Board

Len D. Devaisher President and COO

8 MidWest One Financial Group, Inc. 2020 Annual Report

MidWest One Financial Group, Inc. 2020 Annual Report 9