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 February 1, 2005, at 4:00 p.m. Central Standard Time

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

Iowa First Bancshares Corp. (OTCBB IFST) today reported net income of $922,000
for the quarter ended December 31, 2004, compared to net income of $719,000 for
the quarter ended December 31, 2003, an increase of $203,000 or 28.2%. This
increase in net income primarily resulted from higher net interest income, lower
provision for loan losses, and higher noninterest income during the fourth
quarter of 2004 compared to the fourth quarter of 2003. Basic and diluted
earnings per share were $.67 for the three months ended December 31, 2004, $.16
or 31.4% more than the same period in 2003.

The Company recorded net income of $3,703,000 for the twelve months ended
December 31, 2004, compared with net income of $3,220,000 for the year ended
December 31, 2003, an increase of $483,000 or 15.0%. This increase in net income
was strongly impacted by higher net interest income, lower provision for loan
losses, higher noninterest income, and tightly controlled non-payroll operating
expenses during the twelve months ended December 31, 2004 compared to the same
period during 2003.

Basic and diluted earnings per share were $2.66 for the year ended December 31,
2004, $.39 or 17.2% more than the same period in 2003. The Company's annualized
return on average assets for 2004 was .99% compared to .83% the prior year. The
Company's annualized return on average equity for the twelve months ended
December 31, 2004 and December 31, 2003 was 14.5% and 12.9%, respectively.

The Company's assets at December 31, 2004 totaled $364,183,000, a decrease of
$8,231,000 or 2.2% from December 31, 2003. Net loans outstanding grew
$13,974,000 (5.2%). In addition to loan growth on the balance sheet, nearly $12
million dollars of loans were sold into the secondary market during 2004. The
allowance for loan losses totaled $3,385,000 at December 31, 2004, or 1.2% of
gross loans outstanding.

Total deposits remained essentially unchanged with an increase of only $159,000
(0.1%) during 2004. However, noninterest-bearing deposits grew by $2,521,000
(5.3%) from December 31, 2003 to December 31, 2004, thus contributing to the
improvement in net interest income.

The net interest margin increased to 3.50% during 2004 compared to 3.22% the
prior year. The return on average interest-earning assets decreased only 12
basis points (from 5.62% in 2003 to 5.50% in 2004) while interest paid on
average interest-bearing liabilities declined 42 basis points (from 2.75% in
2003 to 2.33% in 2004).

The board of directors declared a $.25 per common share cash dividend payable to
shareholders of record December 28, 2004. The dividend payment per share was
3.1% higher than the previous quarterly dividend.

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 2003
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 Twelve For the Twelve
Months Ended Months Ended Months Ended Months Ended
December 31, 2004 December 31, 2003 December 31, 2004 December 31, 2003
----------------- ----------------- ----------------- -----------------

Net Interest Income ................ $ 2,965 $ 2,712 $11,657 $11,142
Provision for Loan Losses .......... 30 120 410 645
Noninterest Income ................. 833 647 3,164 2,897
Noninterest Expense ................ 2,439 2,216 9,054 8,798
Net Income After Income Taxes ...... 922 719 3,703 3,220

Net Income Per Common Share,
Basic and Diluted ............... $ 0.67 $ 0.51 $ 2.66 $ 2.27

As of As of
December 31, 2004 December 31, 2003
----------------- -----------------

Net Loans .......................... $280,899 $266,925
Total Assets ....................... 364,183 372,414
Total Deposits ..................... 277,735 277,576

Tier 1 Capital ..................... 32,479 31,195
Return on Average Equity ........... 14.5% 12.9%
Return on Average Assets ........... .99 .83
Net Interest Margin (tax
equivalent) ...................... 3.50 3.22
Allowance as a Percent of Total
Loans ............................ 1.19 1.18