MUSCATINE, Iowa--(BUSINESS WIRE)-- Iowa First Bancshares Corp. (OTCQB: IOFB) today reported net income of $1,003,000 for the quarter ended September 30, 2011, compared to net income of $851,000 for the quarter ended September 30, 2010, an increase of $152,000 or 17.9%. The increase in net income during the third quarter of 2011 compared to the third quarter of 2010 resulted from a decrease in provision for loan losses of $160,000 or 47.1%. Also positively impacting this comparison of the third quarter of 2011 versus 2010 was a decrease of $99,000 or 3.7% in noninterest expense. However, noninterest income during the third quarter of 2011 was $51,000 or 5.4% less than during the third quarter of 2010 and income tax expense was $81,000 or 21.2% higher during the third quarter of 2011 compared to the same period in 2010.

Basic and diluted earnings per share were $.88 for the three months ended September 30, 2011, $.13 or 17.3% more than the same period in 2010.

The Company recorded net income of $2,698,000 for the nine months ended September 30, 2011, compared with net income of $2,279,000 for the three quarters ended September 30, 2010, an increase of $419,000 or 18.4%. The primary factors contributing to this earnings increase were a $480,000 or 47.1% decline in provision for loan losses and a $204,000 or 2.5% reduction in noninterest expense. Noninterest income decreased $75,000 or 2.8% for the nine months ended September 30, 2011 compared with the same period in 2010, while income tax expense increased $200,000 or 19.0%.

Basic and diluted earnings per share were $2.38 for the nine months ended September 30, 2011, an improvement of $.38 from the same period in 2010. The Company’s annualized return on average assets for the first three quarters of 2011 and 2010 was .85% and .75%, respectively. The Company’s annualized return on average equity for the nine months ended September 30, 2011 and September 30, 2010 was 10.9% and 9.7%, respectively.

The Company's assets at September 30, 2011 totaled $415,265,000, an increase of $9,442,000 or 2.3% from September 30, 2010. Gross loans outstanding grew $11,619,000 (3.8%) while total deposits increased $15,338,000 (4.5%) over the past year. The allowance for loan losses totaled $5,348,000 at September 30, 2011, or 1.7% of gross loans outstanding.

The board of directors declared a $.285 per common share cash dividend to be paid to shareholders of record September 30, 2011. Annualized, the dividends paid by the Company result in a yield of 4.6% on the December 31, 2010 common stock price.

Iowa First Bancshares Corp. is a bank holding company headquartered in Muscatine, Iowa. The Company provides a wide array of banking and other financial services to individuals, businesses and governmental organizations through its two wholly-owned national banks located in Muscatine and Fairfield, Iowa.

This press release may contain forward-looking statements. Investors are cautioned that all forward-looking statements involve risks and uncertainties, and several factors could cause actual results to differ materially from those in the forward-looking statements. Our ability to predict results, or the actual effect of future plans or strategies, is inherently uncertain. Factors that could cause actual results to differ from those set forth in the forward-looking statements or that could have a material effect on the operations and future prospects of the Company include, but are not limited to: (1) the strength of the local and national economy; (2) changes in interest rates, legislative or regulatory changes, monetary and fiscal policies of the U.S. government, including policies of the U. S. Treasury and the Federal Reserve Board, and changes in the scope and cost of Federal Deposit Insurance Corporation insurance and fees; (3) the loss of key executives or employees; (4) changes in the quality and composition of the Company’s loan and securities portfolios, demand for loan products and deposit flows; (5) changes in the assumptions and estimates underlying the establishment of reserves for possible loan losses and other estimates; (6) the effects of competition and the overall demand for financial services in the Company’s market areas; (7) our ability to implement new technologies and develop and maintain secure and reliable electronic systems; (8) changes in accounting principles, policies, and guidelines; and (9) other risk factors.

CONTACT:

Iowa First Bancshares Corp.
D. Scott Ingstad, 563-262-4202
Chairman, President and CEO
or
Kim K. Bartling, 563-262-4216
Executive Vice President, Chief Operating Officer & Treasurer

KEYWORDS:   United States  North America  Iowa

INDUSTRY KEYWORDS:   Professional Services  Banking  Finance

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