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 October 23, 2003, at 1:00 p.m. Central Standard Time

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

Iowa First Bancshares Corp. (OTCBB IFST) today reported net income of $940,000
for the quarter ended September 30, 2003, compared to net income of $985,000 for
the quarter ended September 30, 2002, a decrease of $45,000 or 4.6%. This
decrease in net income resulted primarily from lower net interest income and
higher noninterest expense during the third quarter of 2003 compared to the
third quarter of 2002. On a positive note, this decrease in net interest income
and rising noninterest expense was partially offset by lower provision for loan
losses and higher noninterest income during the quarter ended September 30, 2003
as compared to the same quarter of the prior year. Diluted earnings per share
were $.66 during the three months ended September 30, 2003, and $.69 for the
comparable period the prior year, a decrease of $.03 or 4.3%. The Company's
annualized return on average assets and return on average equity for the quarter
ended September 30, 2003 was .98% and 15.0%, respectively.

Net income for the nine months ended September 30, 2003, totaled $2,501,000
which was $208,000 or 7.7% less than the comparable period last year. This
decrease in net income was attributable to lower net interest income, higher
provision for loan losses and higher noninterest expense during the first nine
months of 2003 compared to the same period in 2002. This was partially mitigated
by higher noninterest income during the first three quarters of 2003 than 2002.
Diluted earnings per share for the first nine months of 2003 of $1.76 were $.12,
or 6.4%, lower than the prior year. The Company's annualized return on average
assets and return on average equity for the nine months ended September 30,
2003, was .86% and 13.4%.

Total assets grew $3.2 million (0.8%), and total deposits increased $12.1
million (4.5%) during the first nine months of 2003. Year-to-date 2003 net
interest margin of 3.23% declined from 3.41% over the same period in 2002. This
translated into a decrease of $252,000 or 2.9% in net interest income for the
nine months ended September 30, 2003 compared to the first nine months of 2002.

The Company has, during the first nine months of 2003, repurchased for the
treasury 8,600 shares or 0.6% 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 September 30, 2003. This dividend will be paid on
October 28, 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 Nine For the Nine
Months Ended Months Ended Months Ended Months Ended
September 30, 2003 September 30, 2002 September 30, 2003 September 30, 2002
----------------------------------------------------------------------------------

Net Interest Income ................ $2,810 $2,950 $8,430 $8,682
Provision for Loan Losses .......... 65 95 525 330
Noninterest Income ................. 838 639 2,250 1,959
Noninterest Expense ................ 2,202 2,060 6,582 6,390
Net Income After Income Taxes ...... 940 985 2,501 2,709

Net Income Per Common Share,
Basic and Diluted ............... $ 0.66 $ 0.69 $ 1.76 $ 1.88

As of As of As of
September 30, 2003 December 31, 2002 September 30, 2002
-----------------------------------------------------------

Net loans ....... $262,607 $273,922 $280,380
Total Assets .... 381,866 378,705 386,301
Total Deposits .. 282,564 270,422 276,027

Tier 1 Capital .. 30,769 29,504 29,210