FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549



                QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934




FOR QUARTER ENDED                                       COMMISSION FILE NUMBER
 MARCH 31, 2000                                                 0-24630





                           MAHASKA INVESTMENT COMPANY
             (Exact Name of Registrant as Specified in its Charter)




        IOWA                                           42-1003699
(State of Incorporation)                    (I.R.S. Employer Identification No.)



                  222 First Avenue East, Oskaloosa, Iowa 52577

                         Telephone Number (515) 673-8448






Indicate by check mark whether the registrant (1) has filed all reports required
by  Section  13 or 15(d)  of the  Securities  Exchange  Act of 1934  during  the
preceding 12 months and (2) has been subject to such filing requirements for the
past 90 days.

                 Yes   X                        No

As of April 30, 2000,  there were 4,024,514  shares of common stock $5 par value
outstanding.

<PAGE>
                           MAHASKA INVESTMENT COMPANY
                                AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CONDITION

<TABLE>
<CAPTION>
(unaudited)
(dollars in thousands, except for share amounts)        March 31,   December 31,
                                                          2000          1999
                                                       ---------    -----------
                ASSETS
<S>                                                    <C>               <C>
Cash and due from banks                                $   9,441         13,354
Interest-bearing deposits in banks                           217          1,700
Federal funds sold                                         5,390          7,865
                                                       ---------    -----------
    Cash and cash equivalents                             15,048         22,919
                                                       ---------    -----------
Investment securities:
    Available for sale                                    64,552         60,530
    Held to maturity                                      28,682         29,445
Loans                                                    290,734        282,091
Allowance for loan losses                                 (3,550)        (4,006)
                                                       ---------    -----------
    Net loans                                            287,184        278,085
                                                       ---------    -----------
Loan pool participations                                  60,860         67,756
Premises and equipment, net                                6,850          6,795
Accrued interest receivable                                4,486          4,719
Goodwill and other intangible assets                      12,569         12,850
Other assets                                               4,282          3,090
                                                       ---------    -----------
        Total assets                                   $ 484,513        486,189
                                                       =========    ===========
     LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
    Demand                                             $  22,705         23,197
    NOW and Super NOW                                     41,841         42,378
    Savings                                              100,181         96,377
    Certificates of deposit                              186,833        186,720
                                                       ---------    -----------
        Total deposits                                   351,560        348,672
Federal funds purchased                                        0          2,965
Federal Home Loan Bank advances                           63,954         63,421
Note payable                                              15,400         18,000
Other liabilities                                          3,865          2,896
                                                       ---------    -----------
        Total liabilities                              $ 434,779        435,954
                                                       =========    ===========
Shareholders' equity:
     Common stock, $5 par value; authorized
     20,000,000 shares; issued 4,269,514 shares
     as of March 31, 2000 and December 31, 1999        $  24,564         24,564
Capital surplus                                           13,192         13,192
Treasury stock at cost, 643,335 shares as
  of March 31, 2000, and 577,735 shares as
  of December 31, 1999                                    (9,302)        (8,525)
Retained earnings                                         21,987         21,511
Accumulated other comprehensive loss                        (707)          (507)
                                                       ---------    -----------
        Total shareholders' equity                        49,734         50,235
                                                       ---------    -----------
        Total liabilities and shareholders' equity     $ 484,513        486,189
                                                       =========    ===========
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE>

PART I -- Item 1. Financial Statements, continued.

                           MAHASKA INVESTMENT COMPANY
                                AND SUBSIDIARIES
                        CONSOLIDATED STATEMENTS OF INCOME

<TABLE>
<CAPTION>
(unaudited)                                              Three Months Ended
(dollars in thousands, except per share)                      March 31,
                                                       ------------------------
                                                          2000         1999
                                                       ---------    -----------
<S>                                                    <C>         <C>
Interest income:
  Interest and fees on loans                           $   5,865          3,774
  Interest and discount on loan pools                      2,094          2,209
  Interest on bank deposits                                   32             36
  Interest on federal funds sold                              73             97
  Interest on investment securities:
    Available for sale                                     1,028            446
    Held to maturity                                         460            187
                                                       ---------    -----------
      Total interest income                                9,552          6,749
                                                       ---------    -----------
Interest expense:
  Interest on deposits:
    NOW and Super NOW                                        186            147
    Savings                                                  923            562
    Certificates of deposit                                2,433          1,579
  Interest on federal funds purchased                         35              0
  Interest on Federal Home Loan Bank advances              1,005            108
  Interest on note payable                                   367            305
                                                       ---------    -----------
      Total interest expense                               4,949          2,701
                                                       ---------    -----------
      Net interest income                                  4,603          4,048
Provision for loan losses                                    151            167
      Net interest income after
        provision for loan losses                          4,452          3,881
                                                       ---------    -----------
Noninterest income:
  Service charges                                            400            304
  Data processing income                                      50             50
  Other operating income                                     152            138
  Investment security gains                                   34              0
                                                       ---------    -----------
      Total noninterest income                               636            492
                                                       ---------    -----------
Noninterest expense:
  Salaries and employee benefits expense                   1,637          1,337
  Net occupancy expense                                      435            357
  Professional fees                                          135             86
  Other operating expense                                    915            626
  Goodwill amortization                                      281            149
                                                       ---------    -----------
      Total noninterest expense                            3,403          2,555
                                                       ---------    -----------
      Income before income tax expense                     1,685          1,818
Income tax expense                                           572            661
                                                       ---------    -----------
      Net income                                      $    1,113          1,157
                                                       =========    ===========

Earnings per common share - basic                     $     0.26           0.32
Earnings per common share - diluted                         0.26           0.31
Dividends per common share                                  0.15           0.15

</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE>
PART I -- Item 1. Financial Statements, continued.

                           MAHASKA INVESTMENT COMPANY
                                AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

<TABLE>
<CAPTION>
(unaudited)                                              Three Months Ended
(in thousands)                                                March 31,
                                                       ------------------------
                                                          2000         1999
                                                       ---------    -----------
<S>                                                    <C>         <C>
Net income                                            $    1,113          1,157
Other Comprehensive Income:
   Unrealized gains (losses) on securities
     available for sale; Unrealized holding
     gains (losses) arising during the period,
     net of tax                                             (179)          (100)
   Less: reclassification adjustment of net (gains)
     losses included in net income, net of tax               (21)             0
                                                       ---------    -----------
Other comprehensive loss, net of tax                        (200)          (100)
                                                       ---------    -----------
Comprehensive income                                  $      913          1,057
                                                       =========    ===========
</TABLE>

See accompanying notes to consolidated financial statements.
<PAGE>
                           MAHASKA INVESTMENT COMPANY
                                AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
(unaudited)                                              Three Months Ended
(dollars in thousands)                                         March 31,
                                                       ------------------------
                                                          2000         1999
                                                       ---------    -----------
<S>                                                    <C>         <C>
Cash flows from operating activities:
  Net income                                          $    1,113          1,157
                                                       ---------    -----------
  Adjustments to reconcile net income to net cash
  provided by operating activities:
     Depreciation and amortization                           445            314
     Provision for loan losses                               151            167
     Investment securities gains                             (34)             0
     Amortization of investment securities premiums           50             46
     Accretion of investment securities and
      loan discounts                                         (48)          (120)
     Increase in other assets                               (959)          (138)
     Increase in other liabilities                         1,076            424
                                                       ---------    -----------
        Total adjustments                                    681            693
                                                       ---------    -----------
        Net cash provided by operating activities          1,794          1,850
                                                       ---------    -----------
Cash flows from investing activities:
  Investment securities available for sale:
     Proceeds from sales                                   3,104              0
     Proceeds from maturities                                469          3,383
     Purchases                                            (7,865)        (4,373)
  Investment securities held to maturity:
     Proceeds from maturities                              2,073            644
     Purchases                                            (1,293)        (1,826)
  Net increase in loans                                   (9,213)        (6,964)
  Purchases of loan pool participations                   (4,602)        (1,628)
  Principal recovery on loan pool participations          11,498          5,602
  Purchases of premises and equipment                       (266)          (117)
  Proceeds from sale of premises and equipment                12              0
                                                       ---------    -----------
      Net cash used in investing activities               (6,083)        (5,279)
                                                       ---------    -----------
Cash flows from financing activities:
  Net increase in deposits                                 2,912            796
  Net decrease in federal funds purchased                 (2,965)             0
  Federal Home Loan Bank advances                         26,000              0
  Repayment of Federal Home Loan Bank advances           (25,515)            (7)
  Advances on note payable                                     0            150
  Principal payments on note payable                      (2,600)          (950)
  Dividends paid                                            (637)          (545)
  Purchases of treasury stock                               (777)             0
                                                       ---------    -----------
     Net cash used in financing activities                (3,582)          (556)
                                                       ---------    -----------
     Net decrease in cash and cash equivalents           (7,871)         (3,985)
Cash and cash equivalents at beginning of period         22,919          22,121
                                                       ---------    -----------
Cash and cash equivalents at end of period            $  15,048          18,136
                                                       =========    ===========
Supplemental disclosures of cash flow information:
  Cash paid (received) during the period for:
     Interest                                         $   4,838           2,732
                                                       =========    ===========
     Income taxes                                     $    (300)            229
                                                       =========    ===========

</TABLE>
See accompanying notes to consolidated financial statements.

<PAGE>

PART I -- Item 1. Financial Statements, continued.

                           MAHASKA INVESTMENT COMPANY

                   Notes to Consolidated Financial Statements
                                   (Unaudited)

1.   Basis of Presentation

     The  accompanying  consolidated  statements  of  income,  the  consolidated
     statements of comprehensive income, and the consolidated statements of cash
     flow for the three  months  ended March 31, 1999  include the  accounts and
     transactions of the Company and its four wholly-owned subsidiaries, Mahaska
     State Bank,  Central  Valley  Bank,  Pella  State Bank and  On-Site  Credit
     Services,  Inc. The  consolidated  statements  of condition as of March 31,
     2000 and December  31,  1999,  the  consolidated  statement of income,  the
     consolidated  statement  of  comprehensive  income,  and  the  consolidated
     statement of cash flow for the three  months ended March 31, 2000  includes
     the  accounts  of the  Company  and its  aforementioned  subsidiaries  plus
     Midwest  Federal  Savings and Loan  Association  of Eastern Iowa  ("Midwest
     Federal").  Midwest  Federal  was  acquired  as a result of the merger with
     Midwest Bancshares, Inc. ("Midwest"), which  closed  on September 30, 1999.
     All material intercompany balances and transactions have been eliminated in
     consolidation.

     The accompanying  consolidated  financial  statements have been prepared by
     the Company  pursuant to the rules and  regulations  of the  Securities and
     Exchange Commission.  Certain information and footnote disclosures normally
     included in financial  statements  prepared in  accordance  with  generally
     accepted  accounting  principles have been condensed or omitted pursuant to
     such  rules  and  regulations.   Although   management  believes  that  the
     disclosures are adequate to make the information  presented not misleading,
     it is suggested  that these interim  consolidated  financial  statements be
     read in  conjunction  with the  Company's  most  recent  audited  financial
     statements   and  notes  thereto.   In  the  opinion  of  management,   the
     accompanying  consolidated  financial  statements  contain all  adjustments
     (consisting of only normal recurring  accruals) necessary to present fairly
     the financial  position as of March 31, 2000, and the results of operations
     for the three months ended March 31, 2000 and 1999,  and cash flows for the
     three months ended March 31, 2000 and 1999.

     The results for the three months ended March 31, 2000 may not be indicative
     of results for the year ending December 31, 2000, or for any other period.

2.   Consolidated Statements of Cash Flows

     In the  consolidated  statements of cash flows,  cash and cash  equivalents
     include cash and due from banks,  interest-bearing deposits with banks, and
     federal funds sold.

3.   Income Taxes

     Federal  income tax expense for the three months  ended March  31, 2000 and
     1999 was computed using the  consolidated  effective  federal tax rate. The
     Company also  recognized  income tax expense  pertaining to state franchise
     taxes payable individually by the subsidiary banks.

4.   Earnings Per Common Share

     Basic  earnings  per common  share  computations  are based on the weighted
     average  number of shares of common stock actually  outstanding  during the
     period.  The weighted average number of shares for the three-month  periods
     ended March 31, 2000 and 1999 was  4,288,826 and  3,636,345,  respectively.
     Diluted  earnings per share  amounts are computed by dividing net income by
     the weighted  average  number of shares and all dilutive  potential  shares
     outstanding  during the period.  The  computation  of diluted  earnings per
     share used a weighted average number of shares outstanding of 4,314,801 and
     3,757,646 for the three months ended March 31, 2000 and 1999, respectively.

5.   Effect of New Financial Accounting Standards

     SFAS  No.  133,   "Accounting   for  Derivative   Instruments  and  Hedging
     Activities,"  was scheduled to become  effective for the Company  beginning
     January 1, 2000. SFAS No. 137 subsequently deferred  implementation of SFAS
     133 until January 1, 2001. Management is evaluating the impact the adoption
     of  SFAS  No.  133  will  have  on  the  Company's  consolidated  financial
     statements and expects to adopt SFAS 133 when required.

6.   Use of Estimates in the Preparation of Financial Statements

     The  preparation  of financial  statements  in  conformity  with  generally
     accepted  accounting  principles  requires management to make estimates and
     assumptions  that affect the reported amounts of assets and liabilities and
     disclosure  of  contingent  assets  and  liabilities  at  the  date  of the
     financial  statements  and the  reported  amounts of revenues  and expenses
     during  the  reported  period.  Actual  results  could  differ  from  those
     estimates.  A significant estimate that is particularly sensitive to change
     is the allowance for loan losses.

7.   Sale of On-Site Credit Services, Inc.

     On April 23,  1999,  the  Company  announced  that it had elected to seek a
     buyer for On-Site  Credit  Services,  Inc. ("On- Site"),  its  wholly-owned
     commercial  finance  subsidiary.  A letter of intent  was  executed  with a
     potential  buyer for On- Site on July 28, 1999. It was  anticipated  that a
     closing on the sale would occur in the fourth  quarter of 1999.  In October
     of 1999, it became  apparent  that a  satisfactory  agreement  would not be
     reached  with the  potential  buyer due to the  proposed  structure  of the
     transaction (not due to pricing issues). Management is currently evaluating
     a number of other  alternatives  related to On-Site.  As of March 31, 2000,
     On-Site's loan and lease portfolio totaled  $3,304,000,  or approximately 1
     percent of the Company's  total loans as of that date.  Effective March 21,
     2000, the name of On-Site was formally changed to MIC Financial, Inc.

8.   Acquisition of Midwest Bancshares, Inc.

     The  Company  acquired  Midwest  Federal  Savings and Loan  Association  of
     Eastern Iowa ("Midwest Federal"), a community-oriented  thrift institution,
     with locations in Burlington,  West Burlington,  Fort Madison, and Wapello,
     Iowa on September 30, 1999.

     The excess of the purchase  price over the  identifiable  fair value of the
     tangible and  identifiable  intangible  assets acquired and the liabilities
     assumed of $6,234,000 was recorded as goodwill and is being  amortized over
     25 years on a straight-line basis. The acquisition has been accounted using
     the purchase method of accounting and, accordingly, the income and earnings
     results of Midwest Federal are not included with the results of the Company
     for the period ended March 31, 1999.
<PAGE>
PART I -- Item 2.  Management's Discussion and Analysis of
Financial Condition and Results of Operations.

                          QUARTER ENDED MARCH 31, 2000

On September 30, 1999, the Company acquired all of the outstanding  common stock
of Midwest  Federal  Savings  and Loan  Association  of Eastern  Iowa  ("Midwest
Federal") as a result of an exchange of Company stock with the  shareholders  of
Midwest  Bancshares,  Inc.  ("MWBI"),  the thrift  holding  company  for Midwest
Federal.  A total of 1,105,348 shares of Company common stock were issued to the
former  shareholders of MWBI in a transaction  valued at $19,237,000,  including
transaction expenses. The acquisition of Midwest Federal was accounted for using
the purchase method of accounting  and,  accordingly,  the Company's  results of
operations  for the three months ended March 31, 1999 do not include the results
of Midwest Federal.

The Company  recorded net income of  $1,113,000  for the quarter ended March 31,
2000,  compared with net income of  $1,157,000  for the three months ended March
31, 1999, a decrease of $44,000 (4  percent).  Basic  earnings per share for the
first  quarter of 2000 was $.26 versus  $.32 per share for the first  quarter of
1999.  Diluted  earnings per share for the first quarter of 2000 was $.26 versus
diluted  earnings  per  share  of $.31 for the  first  quarter  of 1999.  Actual
weighted  average shares  outstanding were 4,288,826 and 3,636,345 for the first
quarter of 2000 and 1999,  respectively.  The  issuance of  1,105,348  shares on
September 30, 1999, to  shareholders  of MWBI as a result of the merger into the
Company  increased the average shares  outstanding in the first quarter of 2000.
The  Company's  return on average  assets for the  quarter  ended March 31, 2000
declined to .92 percent  compared  with a return of 1.59 percent for the quarter
ended March 31, 1999 due to the increase of average assets from Midwest Federal.
The Company's  return on average  equity also  decreased to 8.98 percent for the
three  months  ended March 31, 2000 versus  12.22  percent for the three  months
ended March 31, 1999 as a result of the additional  equity following the Midwest
merger.


RESULTS OF OPERATIONS

Net Interest Income

Net interest income is computed by subtracting total interest expense from total
interest income. Fluctuations in net interest income can result from the changes
in the volumes of assets and  liabilities as well as changes in interest  rates.
The  additional  earning  assets  and  interest-bearing  liabilities  of Midwest
Federal  included  in the first  quarter of 2000  significantly  increased  both
interest  income on investments  and loans and interest  expense on deposits and
borrowed  funds in comparison  to the first  quarter of 1999.  The Company's net
interest  income for the quarter  ended March 31, 2000  increased  $555,000  (14
percent) to  $4,603,000  from  $4,048,000  for the three  months ended March 31,
1999. This increase was mainly due to increased interest income earned on higher
loan and investment volumes. Increased interest expense on deposits and borrowed
funds  somewhat  offset  the  higher  interest  income.  Total  interest  income
increased $2,803,000 (42 percent) in the first quarter of 2000 compared with the
same period in 1999.  Exclusive of the  additional  $3,279,000  interest  income
generated by Midwest Federal in the first quarter of 2000, total interest income
would have  decreased  by  $476,000  in  comparison  to the 1999  first  quarter
primarily  due to a reduction in interest  income and discount  recovery on loan
pool participations.  The Company's total interest expense for the first quarter
of 2000 increased $2,248,000 (83 percent) compared with the same period in 1999.
Total interest  expense,  excluding the $1,991,000  related to Midwest  Federal,
increased  $257,000  in the  first  quarter  of 2000  compared  with  1999.  The
Company's net interest margin (on a federal  tax-equivalent basis) for the first
quarter of 2000  decreased  to 4.20  percent  (4.82  percent  excluding  Midwest
Federal) from 6.04 percent in the first quarter of 1999. Net interest  margin is
a measure  of the net  return on  interest-earning  assets  and is  computed  by
dividing  annualized  net  interest  income by the  average  of total  interest-
earning assets for the period. The Company's overall yield on earning assets was
8.68 percent (9.06  percent  without  Midwest  Federal) for the first quarter of
2000  compared  to 10.02  percent  for the first  quarter  of 1999.  The rate on
interest-bearing  liabilities  increased  in the first  quarter  of 2000 to 4.93
percent (4.84 percent without Midwest Federal)  compared to 4.68 percent for the
first quarter of 1999.

Interest  income and fees on loans  (excluding  the  $1,953,000  contributed  by
Midwest  Federal)  increased  $138,000 (4 percent) in the first  quarter of 2000
compared to the same  period in 1999,  mainly due to higher  loan  volumes.  The
average yield on loans exclusive of Midwest Federal declined to 8.58 percent for
the first  quarter of 2000,  compared  to 9.14  percent in the first  quarter of
1999. The average yield on loans including  Midwest Federal in the first quarter
of 2000 was 8.31 percent.  The yield on the Company's loan portfolio is effected
by the amount of nonaccrual loans (which do not earn interest  income),  the mix
of the portfolio  (real estate loans  generally  have a lower overall yield than
commercial and agricultural  loans), the effects of competition and the interest
rate  environment on the amounts and volumes of new loan  originations,  and the
mix of variable rate versus fixed rate loans in the Company's portfolio.  Recent
moves by the Federal Reserve to increase  interest rates may benefit the Company
in future  periods as  variable  rate  loans  tied to prime  have been  adjusted
upward.  Competition for loans in the market areas served by the Company remains
strong.  Average loans  outstanding  were  $286,357,000 for the first quarter of
2000  compared with  $167,455,000  for the first quarter of 1999, an increase of
$118,902,000  (71  percent).  Excluding  the  increase  in average  loan  volume
attributable to Midwest Federal,  the Company's  average loans  outstanding were
$16,034,000 (10 percent) greater in the first quarter of 2000 than in 1999.

Overall, the Company recognized $115,000 less in interest and discount income on
loan pool participations in the first quarter of 2000 compared with 1999, mainly
due to reduced  collections.  Interest income and discount collected on the loan
pool  participations  for the three months  ended March 31, 2000 was  $2,094,000
compared with  $2,209,000  collected in the first quarter of 1999.  The yield on
loan  pool  participations  was 13.30  percent  for the  first  quarter  of 2000
compared with 17.66  percent for the quarter  ended March 31, 1999.  The average
loan pool participation  investment balance was $13,097,000 (26 percent) greater
in the first quarter of 2000 than in 1999 as a result of new purchases of pools.
Newly purchased loan pools typically do not produce income for a period of up to
120 days from date of  purchase  which  significantly  impacts  the yield on the
investment.   These  loan  pool  participations  are  pools  of  performing  and
distressed and nonperforming  loans that the Company has purchased at a discount
from the aggregate  outstanding principal amount of the underlying loans. Income
is  derived  from this  investment  in the form of  interest  collected  and the
repayment  of the  principal  in excess  of the  purchase  cost  which is herein
referred to as "discount  recovery." The Company recognizes  interest income and
discount recovery on its loan pool participations on a cash basis. The loan pool
participations  have traditionally  been a high-yield  activity for the Company,
but this yield has fluctuated  from period to period based on the amount of cash
collections,  discount recovery,  and net collection expenses of the servicer in
any given period.  The income and yield on loan pool  participations may vary in
future periods due to the volume and discount rate on loan pools purchased.

For the  first  quarter  of  2000,  interest  income  on  investment  securities
increased  $855,000  compared  with the quarter  ended March 31, 1999 due to the
additional securities held by Midwest Federal. Without Midwest Federal, interest
income from investment  securities was $66,000 lower in the 2000 quarter than in
1999, generally due to decreased volume in the portfolio.

The $1,254,000  increase in interest expense on deposits in the first quarter of
2000 compared with 1999 was mainly  attributable  to the additional  deposits of
Midwest Federal.  Excluding the $1,112,000  deposit interest expense for Midwest
Federal, the Company's interest expense on deposits increased $142,000 primarily
due to some growth in deposits in the first  quarter of 2000 compared with 1999.
Average  interest-bearing  deposits  for the  first  quarter  of 2000  increased
$113,108,000  (54  percent)  from the same  period  in 1999.  Excluding  Midwest
Federal, average interest-bearing  deposits were $7,587,000 greater in the first
quarter  of 2000  than in 1999.  Interest  expense  on  Federal  Home  Loan Bank
advances was $897,000  higher in the first  quarter of 2000  reflecting  Midwest
Federal's  utilization of this alternative  funding method.  Interest expense on
notes payable  increased $62,000 in the first quarter of 2000 compared with 1999
reflecting  slightly higher average borrowings on the Company's  commercial bank
line of credit and increased interest rates.


Provision for Loan Losses

The  Company  recorded a  provision  for loan  losses of  $151,000  in the first
quarter of 2000, of which $27,000 was recorded by On- Site Credit Services, Inc.
and  $12,000 by Midwest  Federal.  In the first  quarter  of 1999,  the  Company
recorded  a  provision  for loan  losses  of  $167,000  ($84,000  for  On-Site).
Management  determines an appropriate  provision  based on its evaluation of the
adequacy of the allowance for loan losses in relationship to a continuing review
of problem loans,  the current economic  conditions,  actual loss experience and
industry  trends.  Management  believes  that the  allowance  for loan losses is
adequate  based on the  inherent  risk in the  portfolio  as of March 31,  2000,
however,  continued  growth in the loan  portfolio  and the  uncertainty  of the
agricultural  economy require that management continue to evaluate the adequacy
of the  allowance  for loan  losses  and make  additional  provisions  in future
periods as deemed necessary.


Other Income

Other income results from the charges and fees collected by the Company from its
customers for various services  performed,  data processing income received from
nonaffiliated  banks,  miscellaneous other income and gains (or losses) from the
sale of investment  securities  held in the available for sale  category.  Total
other  income was $144,000  (29  percent)  greater in the first  quarter of 2000
compared with 1999.  Excluding the  contribution of Midwest Federal of $101,000,
most  of the  increase  was  due to the  recognition  of  gains  on the  call of
investment securities.


Other Expense

Total other  noninterest  expense for the quarter ended March 31, 2000 increased
$848,000 (33 percent)  compared to noninterest  expense for the first quarter of
1999. Excluding the $889,000 other expense for the operation of Midwest Federal,
the  Company's  other  expense  actually  decreased  $41,000 (2 percent).  Other
expense  includes  all the costs  incurred  to operate  the  Company  except for
interest  expense,  the loan loss  provision  and  income  taxes.  Salaries  and
benefits  expense for the first quarter of 2000 increased  $300,000 (22 percent)
over 1999 as a result of $381,000 in additional expense for Midwest Federal. Net
occupancy  and  equipment  expenses for the 2000 quarter  increased  $78,000 (22
percent) in comparison to 1999 with $122,000 of increase due to Midwest Federal.
Professional fees in the March 31, 2000 quarter increased by $49,000 compared to
1999.  Other operating  expense  increased by $289,000  ($64,000 without Midwest
Federal) in the first quarter of 2000 compared with the three months ended March
31,  1999.  Included  in the other  operating  expense  increase  was a one-time
assessment  in February  2000 of $80,000  made by the  Treasurer of the State of
Iowa to cover the losses on uninsured public fund deposits  incurred when a bank
in Carlisle,  Iowa was declared insolvent and closed by the Iowa  Superintendent
of Banking. The assessment was made on all Iowa banks based on the proportion of
the  average  uninsured  public  funds on deposit in 1999.  Recent  developments
indicate that some or all of this assessment may be returned to the banks in the
near future.


Income Tax Expense

The Company  incurred  income tax expense of $572,000 for the three months ended
March 31, 2000. For the three months ended March 31, 1999, the Company  incurred
income tax expense of  $661,000.  The  decreased  tax expense for the March 2000
quarter  was mainly due to lower  overall  taxable  income  compared to the same
period in the prior year.  The effective  income tax rate as a percent of income
before taxes for the three months ended March 31, 2000 and 1999 was 33.9 percent
and 36.3 percent, respectively.


FINANCIAL CONDITION

Total assets as of March 31, 2000 were  $484,513,000,  a decrease of  $1,676,000
from  December 31, 1999.  As of March 31, 2000,  the Company had  $5,390,000  in
federal funds sold and no federal funds borrowed  compared with  $7,865,000 sold
and $2,965,000  borrowed as of December 31, 1999. The Company's  liquidity needs
are  usually  highest  in the  second  and  third  quarters  of each year due to
seasonal loan demand and minimal  deposit growth in the first nine months of the
year.  Federal funds are borrowed on a short-term  basis to meet this  liquidity
need.


Investment Securities

Investment  securities available for sale increased $4,022,000 from December 31,
1999 to the March 31, 2000 total of $64,552,000 as securities were purchased for
the portfolio.  Investment securities classified as held to maturity declined to
$28,682,000  as of March 31, 2000,  compared with  $29,445,000  on  December 31,
1999, with the net decrease due to the maturity of securities.


Loans

Overall loan volumes  continued to  increase,  with total loans  outstanding  of
$290,734,000 on March 31, 2000, reflecting growth of $8,643,000 (3 percent) from
December 31, 1999.  As of March 31, 2000,  the  Company's  loan to deposit ratio
(excluding  loan  pool  investments)  was 82.7  percent.  This  compares  with a
year-end  1999 loan to  deposit  ratio of 80.7  percent.  As of March 31,  2000,
On-Site had total loans outstanding of $3,304,000, mostly in the commercial loan
category.  This  compares  with a December  31,  1999 loan total for  On-Site of
$5,081,000.


Loan Pool Participations

As of March 31, 2000, the Company had loan pool participations of $60,860,000, a
decrease of  $6,896,000  (10 percent)  from the December 31, 1999  balance.  The
reduction  in the loan pool  participations  is due to  collections  made in the
normal  course of  business  and the sale of a group of  nonperforming  loans in
litigation.  The loan pool investment balance shown as an asset on the Company's
Statement of Condition  represents the discounted purchase cost of the loan pool
participations.  There were few  opportunities to bid on loan pools in the first
quarter of 2000,  but the Company was  successful  in  purchasing  one loan pool
package  totaling  $4,602,000.  The average loan pool  participation  balance of
$63,839,000  for the first three  months of 2000 was  $13,097,000  (26  percent)
higher than the average balance of $50,742,000 for the first quarter of 1999.


Deposits

Total deposits as of March 31, 2000 were $351,560,000 compared with $348,672,000
as of December 31,1999. The Company typically  experiences a seasonal decline in
total deposits from December to March.


Borrowed Funds/Notes Payable

The  Company  had no  Federal  Funds  purchased  on March  31,  2000.  There was
$2,965,000  in Federal  Funds  purchased on December 31, 1999.  During the first
quarter of 2000,  the Company had an average  balance of Fed Funds  purchased of
$3,696,000.  Advances from the Federal Home Loan Bank totaled  $63,954,000 as of
March 31, 2000 compared with  $63,421,000 as of December 31, 1999. Notes payable
declined to $15,400,000 on March 31, 2000 from $18,000,000 on December 31, 1999.


Nonperforming Assets

The Company's  nonperforming  assets totaled  $3,781,000  (1.30 percent of total
loans) as of March 31,  2000,  compared  to  $4,965,000  (1.76  percent of total
loans) as of December  31,  1999.  All  nonperforming  asset  totals and related
ratios  exclude the loan pool  investments.  The  following  table  presents the
categories of  nonperforming  assets for the bank  subsidiaries  and for On-Site
Credit Services, Inc. as of March 31, 2000 compared with December 31, 1999:

<TABLE>
<CAPTION>
                              Nonperforming Assets
                             (dollars in thousands)
                                 March 31, 2000

                                                     Banks   On-Site    Total
                                                     -----   -------   ------
<S>                                                  <C>      <C>      <C>
Nonaccrual                                           $1,833   $1,151   $2,984
Loans 90 days past due                                  586       31      617
Other real estate owned                                 180        0      180
                                                     -----   -------   ------
                                                     $2,599   $1,182   $3,781
                                                     ======   ======   ======


                                December 31, 1999


                                                     Banks   On-Site    Total
                                                     -----   -------   ------

Nonaccrual                                           $1,969   $  905   $2,874
Loans 90 days past due                                1,025      401    1,426
Restructured loans                                        0      515      515
Other real estate owned                                 150        0      150
                                                     -----   -------   ------
                                                     $3,144   $1,821   $4,965
                                                     ======   ======   ======
</TABLE>
From December 31, 1999 to March 31, 2000,  nonaccrual loans increased  $110,000.
Loans  ninety  days  past due  decreased  $809,000,  primarily  as a  result  of
collection efforts.  Restructured loans decreased $515,000 as the performance on
one On-Site credit  deteriorated  and it was  reclassified as nonaccrual.  Other
real estate  owned  increased by $30,000 as a  residential  real estate loan was
foreclosed on. The Company's  allowance for loan losses as of March 31, 2000 was
$3,550,000, which was 1.22 percent of total loans as of that date. This compares
with an allowance for loan losses of  $4,006,000 as of December 31, 1999,  which
was 1.42 percent of total loans.  As of March 31, 2000,  the  allowance for loan
losses was 98.57 percent of  nonperforming  loans compared with 83.20 percent as
of  December  31,  1999.  Based  on the  inherent  risk in the  loan  portfolio,
management  believes that as of March 31, 2000, the allowance for loan losses is
adequate.  For the three months ended March 31, 2000, the Company recognized net
charge-offs of $607,000  compared with net  charge-offs  of $306,000  during the
quarter  ended March 31,  1999.  Net  charge-offs  recorded by On- Site  totaled
$350,000  while the bank  subsidiaries  charged off $257,000  during the quarter
ended March 31, 2000.


Capital Resources

As of March 31, 2000, total shareholders' equity as a percentage of total assets
was 10.26 percent  compared  with 10.33 percent as of December 31, 1999.  During
the first quarter of 2000,  the Company  repurchased a total of 52,500 shares of
stock on the open market as part of the 130,000 share  repurchase  authorized by
the Company's board of directors on January 21, 2000.  Under risk- based capital
rules,  the Company's  tier 1 capital  ratio was 11.27 percent of  risk-weighted
assets as of March 31, 2000, and was 11.42 percent of risk-weighted assets as of
December 31, 1999,  compared to a 4.00 percent  requirement.  Risk-based capital
guidelines  require  the  classification  of assets and some off-  balance-sheet
items in  terms of  credit-risk  exposure  and the  measuring  of  capital  as a
percentage of the  risk-adjusted  asset totals.  Tier 1 capital is the Company's
total common shareholders' equity reduced by goodwill. Management believes that,
as of March 31,  2000,  the  Company and its  subsidiary  banks meet all capital
adequacy  requirements to which they are subject.  As of that date, all the bank
subsidiaries were "well  capitalized"  under regulatory prompt corrective action
provisions.


Liquidity

Liquidity  management  involves meeting the cash flow requirements of depositors
and borrowers.  The Company  conducts  liquidity  management on both a daily and
long-term  basis;  and it adjusts  its  investments  in liquid  assets  based on
expected loan demand,  projected loan  maturities  and payments,  estimated cash
flows  from  the  loan  pool  participations,  expected  deposit  flows,  yields
available   on   interest-bearing   deposits,   and   the   objectives   of  its
asset/liability management program. The Company had liquid assets (cash and cash
equivalents) of $15,048,000 as of March 31, 2000,  compared with  $22,919,000 as
of December  31, 1999.  Much of the decrease  during the quarter was utilized to
fund loan growth and to purchase investment  securities.  Investment  securities
classified  as  available  for sale could be sold to meet  liquidity  needs,  if
necessary.  Additionally,  the bank  subsidiaries  maintain lines of credit with
correspondent  banks and the  Federal  Home Loan Bank that  would  allow them to
borrow  federal  funds on a  short-term  basis if  necessary.  The Company  also
maintains a line of credit with a major commercial bank that provides  liquidity
for the  purchase of loan pool  participation  investments  and other  corporate
needs. Management believes that the Company has sufficient liquidity as of March
31, 2000 to meet the needs of borrowers and depositors.


Market Risk Management

Market risk is the risk of earnings volatility that results from adverse changes
in interest  rates and market  prices.  The  Company's  market risk is primarily
comprised of interest  rate risk arising  from its core  banking  activities  of
lending  and  deposit  taking.  Interest  rate risk is the risk that  changes in
market  interest rates may adversely  affect the Company's net interest  income.
Management  continually  develops and applies  strategies to mitigate this risk.
Management does not believe that the Company's primary market risk exposures and
how those  exposures were managed in the first three months of 2000 changed when
compared to 1999.

The Company uses a third-party  computer software simulation modeling program to
measure its exposure to potential  interest  rate changes.  For various  assumed
hypothetical  changes in market interest rates,  numerous other  assumptions are
made such as prepayment speeds on loans and securities backed by mortgages,  the
slope of the  Treasury  yield  curve,  the rates and  volumes  of the  Company's
deposits and the rates and the volumes of the  Company's  loans.  This  analysis
measures  the  estimated   change  in  net  interest  income  in  the  event  of
hypothetical  changes in interest rates. This analysis of the Company's interest
rate risk was presented in the Form 10-K filed by the Company for the year ended
December 31, 1999.


Year 2000 Compliance

A critical issue has emerged in the banking industry and for the economy overall
was how existing computer application  software programs,  operating systems and
hardware  would  accommodate  the date  value  for the year  2000.  The  Company
established  Year 2000 Committees and Plans at its subsidiary  banks to minimize
the risk of potential  disruption  related to computers and other equipment with
date-sensitive software. Based on the Company's assessment of operations through
April 2000, no significant year 2000 issues have been  experienced.  The Company
has surveyed  its larger  clients,  vendors and  significant  third  parties and
believes they have  experienced  no  significant  year 2000 issues,  which could
adversely  affect the Company.  The Company  will  continue to monitor year 2000
compliance issues.


Commitments and Contingencies

In  the  ordinary  course  of  business,  the  Company  is  engaged  in  various
litigation.  Management believes that none of this litigation is material to the
Company's results of operations.


Board of Directors

R. Spencer  Howard  resigned as a director and Vice President of the Company and
President of On-Site effective February 29, 2000. James F. Mathew, a director of
the Company since February 1979,  passed away on March 28, 2000 following a long
illness. Another long-term director of the Company, Martin L. Bernstein,  passed
away very  unexpectedly  on April 28, 2000. The vacancies on the Company's board
of directors created by these events have not been filled at this time.

"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT

With the exception of the historical  information  contained in this report, the
matters  described herein contain  forward-looking  statements that involve risk
and  uncertainties  that  individually  or mutually  impact the  matters  herein
described,  including but not limited to financial  projections,  product demand
and  market  acceptance,  the  effect  of  economic  conditions,  the  impact of
competitive  products  and  pricing,   governmental   regulations,   results  of
litigation,  technological difficulties and/or other factors outside the control
of the  Company,  which  are  detailed  from time to time in the  Company's  SEC
reports. The Company disclaims any intent or obligation to update these forward-
looking statements.


Part II -- Item 6.  Exhibits and Reports on Form 8-K.

(a)  The  following  exhibits  are filed with this  Report or, if so  indicated,
     incorporated by reference:

     Exhibits

     3.1        Articles of Incorporation of Mahaska Investment Company. (f)

     3.2        Bylaws of Mahaska Investment Company. (f)

     10.1       Mahaska  Investment  Company  Employee Stock Ownership Plan &
                Trust as restated and amended. (b)

     10.2.1     1993 Stock Incentive Plan. (a)

     10.2.2     1996 Stock Incentive Plan. (d)

     10.2.3     1998 Stock Incentive Plan. (e)

     10.3.1     Midstates Resources Corp. Loan Participation and Servicing
                Agreement dated  December 9, 1992 between  Midstates  Resources
                Corp.,  Mahaska Investment Company, and Mahaska State Bank. (a)

     10.3.2     Central States Resources Corp. Liquidation Agreement dated
                April 18, 1988 between  Central  States  Resources  Corp.,
                Mahaska  State Bank, National Bank & Trust Co., and Randal
                Vardaman. (a)

     10.3.3     All States Resources Corp. Loan Participation and Servicing
                Agreement dated September 13, 1993 between All States Resources
                Corp., Mahaska Investment Company, and West Gate Bank. (a)

     10.3.4     States Resources Corp. Loan Participation and Servicing
                Agreement dated February 5, 1999 between States Resources Corp.
                and Mahaska Investment Company. (i)

     10.5.1     Revolving Loan Agreement dated January 31, 1996 between Mahaska
                Investment Company and Harris Trust & Savings Bank. (c)

     10.5.2     Sixth Amendment to Revolving Loan Agreement and Revolving Loan
                Note between Mahaska Investment Company and Harris Trust &
                Savings Bank dated June 30, 1999. (h)

     10.6       Agreement and Plan of Merger By and Between Mahaska Investment
                Company and Midwest Bancshares, Inc. dated February 2, 1999. (g)

     11         Computation of Per Share Earnings.

     27         Financial Data Schedule.

                (a)     Incorporated by reference to the Form S-1
                        Registration Number 33-81922 of Mahaska Investment
                        Company.

                (b)     Incorporated by reference to the Form 10-K for the
                        year ended December 31, 1994 filed by Mahaska
                        Investment Company.

                (c)     Incorporated by reference to the Form 8-K filed by
                        Mahaska Investment Company on February 29, 1996.

                (d)     Incorporated by reference to the Form 10-K for the
                        year ended December 31, 1996 filed by Mahaska
                        Investment Company.

                (e)     Incorporated by reference to the Form 10-K for the
                        year ended December 31, 1997 filed by Mahaska
                        Investment Company.

                (f)     Incorporated by reference to the Form 10-Q for the
                        quarter ended September 30, 1998 filed by Mahaska
                        Investment Company.

                (g)     Incorporated by reference to the Amendment No. 1
                        to the Form S-4 Registration number 333-79291 filed
                        by Mahaska Investment Company on August 17, 1999.

                (h)     Incorporated by reference to the Form 10-Q for the
                        quarter ended September 30, 1999 filed by Mahaska
                        Investment Company.

                (i)     Incorporated by reference to the Form 10-K for the
                        year ended December 31, 1999 filed by Mahaska
                        Investment Company.

(b)  Reports on Form 8-K -- The Company did not file any reports on Form 8-K for
     the three months ended March 31, 2000.


                                   SIGNATURES


Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.



                                   MAHASKA INVESTMENT COMPANY
                                   (Registrant)



May 10, 2000                       /s/ Charles S. Howard
---------------                    -----------------------------------------
Dated                              Charles S. Howard
                                   President



May 10, 2000                       /s/ David A. Meinert
---------------                    -----------------------------------------
Dated                              David A. Meinert
                                   Executive Vice President and
                                   Chief Financial Officer
                                   (Principal Accounting Officer)



<PAGE>

<TABLE>
<CAPTION>
                                  Exhibtit 11

                           MAHASKA INVESTMENT COMPANY
                                AND SUBSIDIARIES
                STATEMENT RE: COMPUTATION OF PER SHARE EARNINGS



Earnings per Share Information:                           Three Months Ended
                                                                March 31,
                                                         --------------------
                                                          2000          1999
                                                          ----          ----
<S>                                                    <C>            <C>
Weighted average number of shares
outstanding during the year                            $4,288,826     3,636,345

Weighted average number of shares
outstanding during the year
including all dilutive potential
shares                                                 $4,314,801     3,757,646

Net earnings                                           $1,113,332     1,157,244

Earnings per share - basic                                   0.26          0.32

Earnings per share - diluted                           $     0.26          0.31
</TABLE>