IOWA FIRST BANCSHARES CORP.
Second and Cedar
Muscatine, Iowa 52761
(563) 263-4221

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

PRESS RELEASE

FOR RELEASE July 21, 2003, at 9:00 a.m. Central Standard Time

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

Iowa First Bancshares Corp. (OTCBB IFST) today reported net income of $944,000
for the quarter ended June 30, 2003, compared to net income of $869,000 for the
quarter ended June 30, 2002, an increase of $75,000 or 8.6%. This increase in
net income, despite a decline in net interest income, resulted from lower
provision for loan losses during the second quarter of 2003 than experienced the
second quarter of 2002. Additionally, noninterest income was substantially
higher in the quarter ended June 30, 2003, than the quarter ended June 30, 2002.
Diluted earnings per share were $.67 during the three months ended June 30,
2003, and $.60 for the comparable period the prior year, an increase of $.07 or
11.7%. The Company's annualized return on average assets and return on average
equity for the quarter ended June 30, 2003 was .95% and 15.2%, respectively.

Net income for the six months ended June 30, 2003, totaled $1,561,000 which was
$163,000 or 9.5% less than the comparable period last year. This decrease in net
income was primarily attributable to higher provision for loan losses during the
first six months of 2003 than the same period in 2002. Moreover, net interest
income for the first two quarters of 2003 was lower than the comparable period
in 2002. Diluted earnings per share for the first six months of 2003 of $1.10
were $.09, or 7.6%, lower than the prior year. The Company's annualized return
on average assets and return on average equity for the six months ended June 30,
2003, was .80% and 12.7%.

Total assets grew $15.4 million (4.1%), and total deposits increased $21.0
million (7.7%) during the first six months of 2003. Year-to-date 2003 net
interest margin of 3.20% declined from 3.36% over the same period in 2002. This
translated into a decrease of $112,000 or 2.0% in net interest income for the
six months ended June 30, 2003 compared to the first six months of 2002.

The Company has, during the first six months of 2003, repurchased for the
treasury 4,000 shares or 0.3% of the total common shares outstanding as of the
prior year end. The Company plans to continue repurchasing shares of its common
stock as they become available. These share repurchases are possible due to the
strong capital base and sufficient cash flow of Iowa First Bancshares Corp.

The board of directors declared a $.235 per common share cash dividend to be
paid to shareholders of record July 1, 2003. This dividend will be paid on July
29, 2003 and results in an annualized yield of 3.55% on the December 31, 2002
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. Iowa First Bancshares Corp. common stock is traded on the Over-The-Counter
Bulletin Board market under the symbol IFST.

This press release contains 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. Forward-looking statements may relate to anticipated
revenues, gross margins, earnings, and growth of the market for our services and
products. The following factors, among others, could cause actual results to
differ from those indicated in the forward-looking statements: uncertainties
associated with market acceptance of and demand for the Company's services and
products, impact of competitive products and pricing, dependence on third party
suppliers, uncertainties associated with the development and deployment of
technology, regulatory or other developments in the industry, and the emergence
of future opportunities or threats. Investors are directed to the Company's 2002
Annual Report on Form 10-K which is filed with the Securities and Exchange
Commission.

CONSOLIDATED FINANCIAL HIGHLIGHTS
(Dollar amounts in thousands, except per share data)
(unaudited)

For the Three For the Three For the Six For the Six
Months Ended Months Ended Months Ended Months Ended
June 30, 2003 June 30, 2002 June 30, 2003 June 30, 2002
--------------------------------------------------------------

Net Interest Income .................. $ 2,839 $ 2,938 $ 5,620 $ 5,732
Provision for Loan Losses ............ 90 167 460 235
Noninterest Income ................... 765 641 1,412 1,320
Noninterest Expense .................. 2,180 2,154 4,380 4,330
Net Income After Income Taxes ........ 944 869 1,561 1,724

Net Income Per Common Share,
Basic and Diluted ................. $ 0.67 $ 0.60 $ 1.10 $ 1.19

As of As of As of
June 30, 2002 June 30, 2003 June 30, 2002
----------------------------------------------

Net loans ............................ $271,383 $273,922 $278,093
Total Assets ......................... 394,078 378,705 374,807
Total Deposits ....................... 291,377 270,422 267,575

Tier 1 Capital ....................... 30,289 29,504 28,640