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

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.