Iowa First Bancshares Corp. Reports Fourth Quarter and Full Year 2021 Results

MUSCATINE, Iowa, February 03, 2022–(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 released financial results for the period three months ended December 31, 2021. Net earnings were $359,000 for the quarter ended December 31, 2021, compared to net earnings of $86,000 for the quarter ended December 31, 2020, an increase of $273,000 or 317.4%. Net interest income for the fourth quarter 2021 increased by $67,000 compared to the quarter ended December 31, 2020. Other factors affecting Iowa First’s fourth quarter results year over year were the provision for loan losses decreased by $1,965,000, non-interest revenue decreased by $339,000, non-interest expense increased by $1,038,000, and income tax expense increased by $382,000. Non-interest income was negatively impacted by the reduction in loans sold in the secondary market as demand for residential loan refinancing declined. Non-interest expense was negatively impacted by expenses related to the Company’s pending acquisition by MidWestOne Financial Group, Inc. (“MidWestOne“).

The Company recorded net earnings of $2,503,000 for the twelve months ended December 31, 2021, compared to net earnings of $2,327,000 for the twelve months ended December 31, 2020, an increase of $176,000 or 7.6%. During this period, net interest income increased by $463,000, provision for loan losses decreased by $2,090,000, non-interest income decreased by $870,000, other expenses interest increased by $1,138,000 and income tax expense increased by $369,000.

Iowa First maintains a strong capital position, as evidenced by its total risk-based capital ratio as of December 31, 2021 of 19.04%. Basic and diluted earnings per share were $2.24 for the twelve months ended December 31, 2021, an increase of $0.17 or 8.2% over the same period in 2020. The annualized return of the average assets of the Company for the financial years ended 2021 and 2020 were 0.47% and 0.48% respectively. The Company’s annualized return on average equity for the twelve months ended December 31, 2021 and December 31, 2020 was 4.9% and 4.6%, respectively.

Total assets as of December 31, 2021 were $522,507,000, an increase of $10,985,000 (2.1%) compared to December 31, 2020. Gross loans outstanding decreased by $21,055,000 (6 .5%), while deposits increased by $13,185,000 (3.0%) year-over-year. Provision for loan losses totaled $5,580,000 or 1.84% of gross loans outstanding as of December 31, 2021. Unexpected loans totaled $5.3 million or 1.8% of gross loans outstanding. loans as of December 31, 2021, a decrease from $11.5 million or 3.6% as of December 31, 2020.

The two Iowa First banks have been very active in the Paycheck Protection Program (“PPP”) loan program set up through the SBA to help businesses and farmers as they try to recover the challenges of the COVID-19 pandemic. Customer requests for loan forgiveness continue to be approved by the SBA. PPP loans outstanding as of December 31, 2021 were $485,000, a decrease of $8,654,000 (94.7%) from December 31, 2020.

Iowa First Bancshares Corp. Acquisition pending

November 1, 2021, Iowa First and MidWestOnethe holding company of MidWestOne Bank, jointly announced the signing of an agreement and merger plan under which MidWestOne will acquire Iowa First and its subsidiaries. On January 20, 2022, the agreement and proposed merger with MidWestOne was approved by Iowa First shareholders. The acquisition is expected to close in the first quarter or early second quarter of 2022 and is subject to regulatory approvals, as well as other customary closing conditions.

About Us

Iowa First Bancshares Corp. is a bank 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 regarding the financial condition, results of operations, plans, objectives, future performance and activities of 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 herein, including forward-looking statements, speak only as of the date on which they are made, and the Company undertakes no obligation to update any statement 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 effect on the operations and future prospects of the Company include, but are not limited to: (1) effects of the COVID-19 pandemic, including its potential effects on the economic environment, the Company’s customers and its business, as well as any changes in federal, state or local laws, regulations or ordinances in connection with the pandemic ; (2) a deterioration in credit quality or a pronounced and sustained reduction in the value of real estate or other collateral could cause an increase in the provision for loan losses and a reduction in net income; (3) our management’s ability to effectively reduce and manage interest rate risk and the impact of interest rates generally on the level and volatility of our net interest income (including impact of the phasing out of 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 the pricing of loans and deposits; (5) fluctuations in the value of our investment securities; (6) government 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 loan loss provision to absorb the amount of actual losses inherent in our loan portfolio; (10) our ability to successfully adapt to changes in technology; (11) credit risks related to concentrations (by geography and by industry) 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 data processing system failure or fraud; (15) the costs, effects and results of existing or future litigation; (16) changes in general economic or industry conditions, nationally or in the communities in which we operate; (17) changes in accounting policies and practices (including due to the future implementation of 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 circumstance which may give rise to the right of either or both parties to terminate the Agreement and the Merger Plan to which the Company and MidWestOne are a party; and (19) failure to obtain necessary regulatory approvals or satisfy any of the other conditions of the proposed merger on a timely basis or at all.


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


For the three months
Completed December 31, 2021

For the three months
Completed December 31, 2020

For the twelve months
Completed December 31, 2021

For the twelve months
Completed December 31, 2020

Net interest income





Allowance for loan losses





Non-interest income





Non-interest expenses





income tax expense





Net income after income taxes





Net earnings per ordinary share,

Basic and Diluted





Average number of ordinary shares outstanding since the beginning of the year,

Basic and Diluted





December 31, 2021

December 31, 2020

Gross loans



Total assets

522 507

511 522

Total deposits

459 137


Tier 1 capital


50 216

return on average equity



Average return on assets



Net interest margin (tax equivalent)



Allocation as a percentage of total loans



See the source version on


D. Scott Ingstad, Chairman, President and CEO (563-262-4202) Or
Teresa A. Carter, Chief Financial Officer (563-262-4214)

About Sharon Joseph

Check Also


Forward-looking statements The matters discussed in this report, as well as in future oral and …