Iowa First Bancshares Corp. Broadcasts Second Quarter Monetary Outcomes and Dividend Payout

MUSCATINE, Iowa – (BUSINESS WIRE) – Iowa First Bancshares Corp. (OTC Pink: IOFB) (“Iowa First” or the “Company”), the holding company of First National Bank of Muscatine and First National Bank of Fairfield, today announced financial results for the three month period ended June 30, 2021. The Net income was $ 847,000 for the quarter ended June 30, 2021, compared to net income of $ 682,000 for the quarter ended June 30, 2020, an increase of $ 165,000, or 24.2%. The year-over-year increase in net income of $ 165,000 for the second quarter was primarily due to higher net interest income of $ 292,000. Net interest income was positively impacted by the recognition of unearned loan fees on PPP loans granted by the Small Business Administration (SBA) in the second quarter of 2021. Other factors affecting Iowa First’s second quarter results year-over-year were loan loss allowance decrease of $ 105,000, noninterest income of $ 229,000, noninterest expenses of $ 33,000, and income tax expense of $ 36,000.

The company posted net income of $ 1,322,000 for the six months ended June 30, 2021, compared to net income of $ 1,477,000 for the two quarters ended June 30, 2020, a decrease of $ 125,000, or 8.6% is equivalent to. During the period, net interest income decreased $ 92,000, provision for loan losses decreased $ 45,000, noninterest income decreased $ 88,000, noninterest expenses decreased $ 52,000, and income tax expense decreased $ 48,000.

Iowa First maintains a strong capital position, as evidenced by its total risk-based capital ratio of 18.6% on June 30, 2021. Basic and diluted earnings per share for the six months ended June 30, 2021 were $ 1.18, down $ 0.11, or 9%, from the same period in 2020. The company’s annualized return on average assets for the first two quarters of 2021 and 2020 were. 50% and 0.61%, respectively. The company’s annualized return on average equity for the six months ended June 30, 2021 and June 30, 2020 was 5.2% and 5.8%, respectively.

Total assets as of June 30, 2021 were $ 525,316,000, an increase of $ 31,585,000, or 6.4%, compared to June 30, 2020. Gross loans outstanding decreased by $ 42,695,000, or 12.0%, while deposits increased $ 29,901,000, 7.0% year over year. Loan loss allowance as of June 30, 2021 was $ 6,481,000, or 2.06% of gross loans outstanding. Borrowings totaled $ 7.9 million as of June 30, 2021, or 2.5% of gross loans outstanding, down from $ 13.9 million, or 3.9%, as of June 30, 2020. While the non-accrual loans are still above the desired level, this significant decrease reflects the continued focus of the Fairfield subsidiary on improving the quality of the entire loan portfolio and reducing the number of non-accrued loans.

Both Iowa First banks have been very active in the PPP loan program set up by the SBA to help businesses and farmers try to survive the coronavirus pandemic. Customer applications for loan waiver will continue to be approved by the SBA, resulting in outstanding PPP loans as of Jan.

The board of directors has approved a quarterly cash dividend of $ 0.15 per share payable to shareholders of record on August 2, 2021 on August 31, 2021. On an annual basis, this dividend corresponds to a yield of 2.22% compared to the share price on December 31, 2020. Iowa First Bancshares Corp. has paid a cash dividend to shareholders every year since 1989.

about us

Iowa First Bancshares Corp. is a bank holding company based in Muscatine, Iowa. The company provides a wide range of banking and other financial services to individuals, businesses and government organizations through its two wholly owned state banks in Muscatine and Fairfield, Iowa.

Special note on forward-looking statements

This press release contains and future oral and written statements by the company and its management may contain forward-looking statements regarding the company’s financial condition, results of operations, plans, goals, future performance and business. Investors are cautioned that all forward-looking statements involve risks and uncertainties and that many factors could cause actual results to differ materially from those expected or projected. Our ability to predict results or the actual effects of future plans or strategies is inherently uncertain. In addition, all statements in this document, including forward-looking statements, speak only as of the date of their publication, and the company assumes no obligation to update any statements in light of new information or future events. Factors that could cause actual results to differ materially from those set forth in the forward-looking statements, or that could have a material impact on the company’s business and future prospects, include, but are not limited to: (1) the effects of the COVID 19 Pandemic, including its potential impact on the economic environment, the Company’s customers and its business operations, and any changes to laws, regulations, or orders from federal, state or local authorities in connection with the pandemic; (2) a deterioration in credit quality or a marked and persistent decline in property values ​​or other collateral values ​​could lead to an increase in loan loss provisions and a decrease in net income; (3) the ability of our management to reduce and effectively manage interest rate risk and the impact of interest rates in general on the level and volatility of our net interest income (including the effects of the LIBOR exit); (4) changes in economic conditions, competition, or other factors that may affect our ability to acquire credit or the expected rate of growth of loans and deposits, the quality of the loan portfolio and loan and deposit prices; (5) fluctuations in the value of our securities; (6) state monetary and fiscal policy; (7) legal, regulatory and tax law changes; (8) the ability to attract and retain key leaders and employees; (9) Adequate allowance for credit losses to absorb the amount of actual losses in our credit portfolio; (10) our ability to adapt successfully to changes in technology; (11) Credit exposure from concentrations (by geographic area and by industry) within our credit portfolio; (12) the effects of competition from multiple sources; (13) volatility, duration and matching risks of interest rate sensitive assets and liabilities as well as liquidity risk; (14) operational risks, including failure or fraud of the data processing system; (15) the costs, effects and results of any existing or future litigation; (16) changes in general economic or industry conditions, nationally or in the communities in which we do business; and (17) changes in accounting policies and practices (including due to the future implementation of the current Impairment Standard for Expected Credit Loss (CECL) that will change the entity’s estimate of credit losses).


(Dollar amounts in thousands, excluding stocks and data per share)


For the three months

For the three months

For the six months

For the six months





June 30, 2021

June 30, 2020

June 30, 2021

June 30, 2020

Net interest income

$ 3,559

$ 3,267

$ 6,649

$ 6,741

Provision for credit losses





Non-interest income





Non-interest expenses





Income tax expense





Net income after income taxes





Basic and diluted net earnings per common share

$ 0.75

$ 0.61

$ 1.18

$ 1.29

Average number of ordinary shares outstanding since the beginning of the year, basic and diluted








June 30, 2021

December 31, 2020

June 30, 2020

Gross loan

$ 314,088

$ 324,356

$ 356,783

Total assets




Total deposits




Tier 1 capital




Return on average equity




Return on average wealth




Net interest margin (tax equivalent)




Allowance as a percentage of total loans