MUSCATINE, Iowa – (COMMERCIAL THREAD) – Iowa First Bancshares Corp. (OTC Pink: IOFB) (“Iowa First” or the “Company”), the holding company of the First National Bank of Muscatine and the First National Bank in Fairfield, today released its financial results for the quarter ended on September 30, 2021. Net income was $ 822,000 for the quarter ended September 30, 2021, compared to net income of $ 794,000 for the quarter ended September 30, 2020, an increase of $ 28,000 or 3.5%. Net interest income in the third quarter of 2021 increased by $ 488,000 compared to the quarter ended September 30, 2020 and was positively affected by the recognition of unearned loan charges on Paycheck Protection Program loans (“PPP”) canceled by the Small Business Administration (“SBA”) in the third quarter of 2021, as well as a reduction in interest charges. Other factors affecting Iowa First’s third quarter year-over-year results were the allowance for loan losses down $ 170,000, non-interest income down $ 443,000, non-interest expense. ‘Interest increased by $ 152,000 and income tax expense increased by $ 35,000. Non-interest income was negatively affected by the reduction in loans sold on the secondary market as demand for residential loan refinancing declined.

The Company recorded net income of $ 2,144,000 for the nine months ended September 30, 2021, compared to net income of $ 2,241,000 for the three quarters ended September 30, 2020, a decrease of $ 97,000 or 4 , 3%. During this period, net interest income increased by $ 396,000, the allowance for loan losses decreased by $ 125,000, non-interest income decreased by $ 531,000, non-interest expense. interest increased by $ 100,000 and income tax expense decreased by $ 13,000.

Iowa First maintains a strong capital position, as evidenced by its September 30, 2021 total venture capital ratio of 18.7%. Basic and diluted earnings per share were $ 1.91 for the nine months ended September 30, 2021, a decrease of $ 0.08 or 4% from the same period in 2020. Annualized return on assets Company average for the first three quarters of 2021 and 2020 was. 54% and 0.62% respectively. The annualized return on average equity of the Company for the nine months ended September 30, 2021 and September 30, 2020 was 5.6% and 6.0%, respectively.

Total assets as at September 30, 2021 were $ 519,420,000, an increase of $ 2,695,000 (0.5%) from September 30, 2020. Gross loan outstandings decreased by $ 39,893,000 ( 11.4%), while deposits increased by $ 3,302,000 (0.7%) year over year. The allowance for loan losses totaled $ 6,597,000 as at September 30, 2021, or 2.12% of gross outstanding loans. Unrecorded loans totaled $ 7.5 million or 2.4% of gross loan outstandings as at September 30, 2021, down from $ 14.6 million or 4.2% as at September 30, 2020. Good that unrecorded loans remain at a level above First National Bank’s continued focus in Fairfield on improving the quality of the overall loan portfolio and reducing unrecognized loans.

Both Iowa First banks have been very active in the PPP loan program established through the SBA to help businesses and farmers try to survive the coronavirus pandemic. Client loan cancellation requests continue to be approved by the SBA. Outstanding PPP loans as of September 30, 2021 was $ 3,454,000, a decrease of $ 20,270,000 (85.4%) from September 30, 2020.

The Board of Directors declared a quarterly cash dividend of $ 0.15 per share payable on November 30, 2021 to shareholders of record on November 1, 2021. On an annualized basis, this dividend represents a return of 2.22% over the share price as of December 31, 2020.. Iowa First has paid a cash dividend to shareholders every year since 1989.

Iowa First Bancshares Corp. awaiting acquisition

November 1, 2021, Iowa First and MidWestA Financial Group, Inc. (“MidWestA“), the holding company of MidWestA Bank, jointly announced the signing of a definitive agreement under which MidWestA will acquire Iowa First and its banking subsidiaries. The acquisition is expected to close in the first quarter of 2022 and is subject to approval by Iowa First shareholders and regulators, as well as other customary closing conditions. Shareholders of Iowa First will be entitled to receive cash consideration in the amount of $ 47,582,612 or $ 42.64 per share, based on 1,115,939.22526 Iowa First shares issued and outstanding as of 1 November 2021, subject to adjustment in accordance with the terms of the definitive agreement.

Iowa First will send a proxy and other relevant documents to its shareholders. Iowa First shareholders are advised to read the Management Proxy Circular and its amendments, when available, as these documents will contain important information about MidWest.A, Iowa First and the proposed transaction. These documents may also be obtained free of charge from Iowa First when available, upon written request to Iowa First, c / o First National Bank of Muscatine, Attention: Chief Executive Officer, 300 East Second Street, Muscatine, Iowa 52761 or by calling 563-263-4221.

About Us

Iowa First Bancshares Corp. is a banking holding company headquartered 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 national banks located in Muscatine and Fairfield, Iowa.

Special Note Regarding Forward-Looking Statements

This press release contains, and future oral and written statements of the Company and its management may contain, forward-looking statements concerning the financial condition, results of operations, plans, objectives, future performance and activities of the Company. the society. Investors are cautioned that all forward-looking statements involve risks and uncertainties, and many factors could cause actual results to differ materially from anticipated or projected results. Our ability to predict results, or the actual effect of future plans or strategies, is inherently uncertain. Further, all statements contained in this document, including forward-looking statements, speak only as of the date on which they are made, and the Company assumes no obligation to update any statement in light of new information or future events. Factors which could cause actual results to differ materially from those stated in forward-looking statements or which could have a material effect on the operations and future prospects of the Company include, but are not limited to: (1) the effects of the COVID-19 pandemic, including its potential effects on the economic environment, the Company’s customers and its operations, as well as any changes in federal, state or local laws, regulations or ordinances relating to the pandemic; (2) a deterioration in credit quality or a sharp and sustained reduction in the value of real estate or other collateral could result in an increase in the allowance for loan losses and a reduction in net income; (3) the ability of our management to reduce and effectively manage interest rate risk and the impact of interest rates generally on the level and volatility of our net interest income (including impact of phasing out LIBOR); (4) changes in the economic environment, competition or other factors that may affect our ability to acquire loans or influence the expected growth rate of loans and deposits and the quality of the loan portfolio and pricing of loans. loans and deposits; (5) fluctuation in the value of our investment securities; (6) the government’s monetary and fiscal policies; (7) legislative, regulatory and tax changes; (8) the ability to attract and retain executives and key employees; (9) the adequacy of the allowance for loan losses to absorb the amount of actual losses inherent in our loan portfolio; (10) our ability to successfully adapt to technological change; (11) credit risks related to concentrations (by geographic area and by sector) within our loan portfolio; (12) the effects of competition from many sources; (13) volatility, duration and matching risks of 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 existing or future litigation; (16) changes in general economic or industrial conditions, nationally or in the communities in which we operate; (17) changes in accounting policies and practices (including as a result of the future implementation of the current expected credit loss impairment (CECL) standards, which will change the way the Company estimates credit losses); (18) the occurrence of any event, change or other circumstances which could give rise to the right of one or both parties to terminate the merger agreement to which the Company and MidWestA are a party; and (19) failure to obtain the necessary regulatory approvals and shareholder approval or to meet any of the other conditions of the proposed merger on a timely basis or not at all.


(Amounts in thousands of dollars, except per share and per share data)


For the three

Ended months

September 30, 2021

For the three

Ended months

September 30, 2020

For the nine

Ended months

September 30, 2021

For the nine

Ended months

September 30, 2020

Net interest income

$ 3,809

$ 3,321

$ 10,458

$ 10,062

Allowance for loan losses





Non-interest income





Non-interest charges

3 367

3 215

9 667

9 567

Income tax expense





Net income after income taxes



2 144

2 241

Net earnings per ordinary share,

Basic and Diluted

$ 1.16

$ 0.71

$ 1.91

$ 1.99

Average number of ordinary shares in circulation since the start of the year,

Basic and Diluted






September 30, 2021


December 31, 2020


September 30, 2020

Gross loans

$ 310,572

$ 324,356

$ 350,465

Total assets


511 522


Total deposits


445 952


Tier 1 capital

51 825

50 216


Return on average equity




Return on average assets




Net interest margin (tax equivalent)




Allocation as a percentage of total loans




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