Iowa's Mahaska Investment Co. said it has a deal to buy Midwest Bancshares of Burlington, Iowa, for $19 million in stock.

Mahaska, in Oskaloosa, is the holding company for three banks with a combined $298 million of assets. Midwest is the parent of Midwest Federal Savings and Loan Association, a $165 million-asset thrift founded in 1919.

The deal calls for the thrift to keep its charter and local board, and become Mahaska's fourth banking subsidiary. It is expected to close during the third quarter.

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