Iowa First Bancshares Corp. Reports First Quarter Financial Results and Dividend Payment

MUSCATINE, Iowa–(BUSINESS WIRE)–Iowa First Bancshares Corp. (OTC Pink: IOFB) today reported operating
results for the three month period ended March 31, 2019. Consolidated
net income totaled $809,000 compared to net income of $733,000 for the
same period last year, an increase of $76,000 or 10.4%. Comparing first
quarter 2019 and first quarter 2018 results: net interest income
decreased $6,000 or 0.2%; provision for loan losses decreased $165,000
or 30.1%; noninterest income declined by $19,000 or 2.3%; noninterest
expense increased $45,000 or 1.5%; and income tax expense increased
$19,000 or 8.7%.

Basic and diluted earnings per share were $.72 for the three months
ended March 31, 2019, an increase of $.07 from the same period in 2018.
The Company’s annualized return on average assets for the first quarter
of 2019 and 2018 was .70% and .62%, respectively. The Company’s
annualized return on average equity for the first quarter of 2019 and
2018 was 6.9% and 6.4%, respectively.

Total assets at March 31, 2019 were approximately $483 million, an
increase of nearly $5.4 million (1.1%) from March 31, 2018. Deposits
totaled $415.7 million, an increase of approximately $8.1 million (1.9%)
when comparing the end of the first quarter of 2019 to 2018. Gross loans
outstanding at March 31, 2019, decreased $25.2 million (6.3%), compared
to March 31, 2018. This substantial decrease in gross loans outstanding
was significantly influenced by management of the Fairfield subsidiary
bank working to assist certain borrowers in their efforts to reduce the
amount of credit extended to them and, in some cases, to fully or
partially refinance their debt with other financial institutions.

The allowance for loan losses totaled $6.48 million at March 31, 2019,
or 1.74% of gross loans outstanding compared to 1.44% of gross loans at
March 31, 2018. Net loans charged-off during the first quarter of 2019
and 2018 totaled $213,000 and $478,000, respectively. Nonaccrual loans
totaled $5.5 million or 1.5% of gross outstanding loans at March 31,
2019, a substantial decrease from $7.6 million or 1.9% of gross
outstanding loans at March 31, 2018.

The board of directors declared a quarterly cash dividend of $.29 per
share payable April 30, 2019, to shareholders of record April 1, 2019.
On an annualized basis this dividend represents a return of 3.2% on the
December 31, 2018 stock price. Iowa First Bancshares Corp. has paid a
cash dividend to shareholders every year since 1989.

At the annual shareholders meeting held April 18, 2019, the shareholders
voted in favor of the election of all three director nominees. The
shareholders also voted in favor of each of the other proposals which
had been recommended by the Company.

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 many factors could cause actual results to differ
materially from the results anticipated or projected. 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
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) credit quality
deterioration or pronounced and sustained reduction in real estate or
other collateral values could cause an increase in the allowance for
loan losses and a reduction in net income; (2) our management’s ability
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; (3) changes in the economic environment, competition,
or other factors that may affect our ability to acquire loans or
influence the anticipated growth rate of loans and deposits and the
quality of the loan portfolio and loan and deposit pricing; (4)
fluctuations in the value of our investment securities; (5) governmental
monetary and fiscal policies; (6) legislative, regulatory and tax law
changes as well as changes in the scope and cost of Federal Deposit
Insurance Corporation insurance and other fees; (7) the ability to
attract and retain key executives and employees; (8) the sufficiency of
the allowance for loan losses to absorb the amount of actual losses
inherent in our loan portfolio; (9) our ability to adapt successfully to
technological changes; (10) credit risks and risks from concentrations
(by geographic area and by industry) within our loan portfolio; (11) the
effects of competition from numerous sources; (12) the failure of
assumptions underlying the establishment of allowances for loan losses
and estimation of values of collateral and various other financial
assets and liabilities; (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 outcomes of existing or future litigation;
(16) changes in general economic or industry conditions, nationally or
in the communities in which we conduct business; (17) changes in
accounting policies and practices; and (18) other risks.

 

CONSOLIDATED FINANCIAL HIGHLIGHTS

(Dollar amounts in thousands, except share and per share data)

(Unaudited)

           

For the Quarter

For the Quarter

Ended

Ended

March 31, 2019

March 31, 2018

 
Net Interest Income $ 3,738 $ 3,744
Provision for Loan Losses 375 540
Noninterest Income 814 833
Noninterest Expense 3,131 3,086
Income Tax Expense 237 218
Net Income after Income Taxes 809 733
 

Net Income Per Common Share, Basic and Diluted

$ 0.72 $ 0.65
 

As of

As of

As of

March 31, 2019

December 31, 2018

March 31, 2018

 
Gross Loans $ 373,194 $ 379,737 $ 398,383
Total Assets 483,044 462,159 477,660
Total Deposits 415,723 396,047 407,643
Tier 1 Capital 47,516 47,036 46,482

Average Common Shares Outstanding, Basic and Diluted

1,130,966 1,131,455 1,131,847
 
Return on Average Equity 6.9 % 4.9 % 6.4 %
Return on Average Assets .70 % .49 % .62 %
Net Interest Margin (tax equivalent) 3.43 % 3.42 % 3.40 %
Allowance as a Percent of Total Loans 1.74 % 1.66 % 1.44 %
 

Contacts

D. Scott Ingstad, Chairman, President and CEO (563-262-4202)
Or
Kim
K. Bartling, Executive Vice President, Chief Operating Officer &
Treasurer (563-262-4216)