Ownership Submission
FORM 4
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
DONOHUE RICHARD R
   2. Issuer Name and Ticker or Trading Symbol
ISB Financial Corp. [MOFG] 		5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
__X__ Director _____ 10% Owner
_____ Officer (give title below) _____ Other (specify below)
(Last)
(First)
(Middle)
102 SOUTH CLINTON STREET		 3. Date of Earliest Transaction (Month/Day/Year)
03/14/2008
(Street)

IOWA CITY, IA 52240		 4. If Amendment, Date Original Filed(Month/Day/Year)
 6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)		 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code
(Instr. 8)		 4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)		 5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)		 6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)		 7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
Common Stock 03/14/2008   A   1,463 (1) A $ 0 (1) 1,463 D  
Common Stock 03/14/2008   A   1,535 (1) A $ 0 (1) 1,535 I By Spouse

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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)		 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code
(Instr. 8)		 5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)		 6. Date Exercisable and Expiration Date
(Month/Day/Year)		 7. Title and Amount of Underlying Securities
(Instr. 3 and 4)		 8. Price of Derivative Security
(Instr. 5)		 9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)		 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)		 11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Stock Option $ 10.28 03/14/2008   A   1,044 (2)     (2) 04/26/2011 Common Stock 1,044 $ 0 1,044 D  
Stock Option $ 14.59 03/14/2008   A   1,151 (2)     (2) 04/30/2012 Common Stock 1,151 $ 0 1,151 D  
Stock Option $ 16.85 03/14/2008   A   1,375 (2)     (2) 04/30/2013 Common Stock 1,375 $ 0 1,375 D  
Stock Option $ 19.5 03/14/2008   A   1,310 (2)     (2) 04/30/2014 Common Stoc, 1,310 $ 0 1,310 D  
Stock Option $ 18.49 03/14/2008   A   1,147 (2)     (2) 04/29/2015 Common Stock 1,147 $ 0 1,147 D  
Stock Option $ 20.08 03/14/2008   A   950 (2)     (2) 04/28/2016 Common Stock 950 $ 0 950 D  
Stock Option $ 18.06 03/14/2008   A   950 (2)     (2) 04/26/2017 Common Stock 950 $ 0 950 D  

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
DONOHUE RICHARD R
102 SOUTH CLINTON STREET
IOWA CITY, IA 52240		   X      

Signatures

 Karen K. Binns, under Power of Attorney dated 0619/03   03/18/2008
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) Received in exchange for shares of MidWestOne Financial Group, Inc. ("OSKY") common stock in connection with the merger of OSKY into MidWestOne Financial Group, Inc. (f/k/a ISB Financial Corp.) ("MOFG") at a rate of 0.95 share of MOFG common stock for each share of OSKY common stock. On the effective date of the merger, the closing price of OSKY common stock was $16.60 per share, and the closing price of MOFG common stock was $18.25.
(2) Received in the merger in exchange for an option to acquire shares of OSKY common stock. Pursuant to the terms of the merger, all outstanding options to acquire OSKY common stock became fully vested prior to the effective time of the merger and became exercisable for the number of whole shares of MOFG common stock equal to the number of shares of OSKY common stock subject to the option multiplied by 0.95 (rounded down to the nearest whole number) with an exercise price equal to the original exercise price divided by 0.95 (rounded up to the nearest whole cent.

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