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 26, 2005, at 11:00 a.m. Central Standard Time
Iowa First Bancshares Corp. Reports Second Quarter
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Financial Results and Dividend Payment
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Iowa First Bancshares Corp. (OTCBB IFST) today reported net income of $923,000
for the quarter ended June 30, 2005, compared to net income of $988,000 for the
quarter ended June 30, 2004, a decrease of $65,000 or 6.6%. This decrease in net
income resulted from increased operating expenses and lower other income which
more than offset improved net interest income and a lower provision for loan
losses.
Basic and diluted earnings per share were $.67 for the three months ended June
30, 2005, $.04 or 5.6% less than the same period in 2004. The Company's
annualized return on average assets for the second quarter of 2005 was .97%
compared to 1.04% during the second quarter of the prior year. The Company's
annualized return on average equity for the three months ended June 30, 2005 and
June 30, 2004 was 14.0% and 15.7%, respectively.
The Company recorded net income of $1,689,000 for the six months ended June 30,
2005, compared with net income of $1,811,000 for the two quarters ended June 30,
2004, a decrease of $122,000 or 6.7%. This decrease in net income resulted
primarily from higher operating expenses and provisions for loan losses more
than offsetting an increase in net interest income.
Basic and diluted earnings per share were $1.22 for the six months ended June
30, 2005, $.07 or 5.4% less than the same period in 2004. The Company's
annualized return on average assets for the first two quarters of 2005 was .90%
compared to .96% during the same quarters of the prior year. The Company's
annualized return on average equity for the six months ended June 30, 2005 and
June 30, 2004 was 13.0% and 14.4%, respectively.
The Company's assets at June 30, 2005 totaled $376,429,000, an increase of
$12,246,000 or 3.4% from December 31, 2004. Net loans outstanding grew
$6,930,000 (2.5%) and total deposits increased $12,598,000 million (4.5%) during
the first six months of 2005. Approximately six million dollars of loans were
sold into the secondary market over the six months ended June 30, 2005. The
allowance for loan losses totaled $3,456,000 at June 30, 2005, or 1.2% of gross
loans outstanding.
The net interest margin increased to 3.55% during the first two quarters of 2005
compared to 3.40% during the first two quarters of 2004. The return on average
interest-earning assets increased 29 basis points (from 5.39% in 2004 to 5.68%
in 2005) while interest paid on average interest-bearing liabilities increased
20 basis points (from 2.33% in 2004 to 2.53% in 2005).
The board of directors declared a $.25 per common share cash dividend to be paid
to shareholders of record June 28, 2005. This dividend will be paid on July 26,
2005 and results in an annualized yield of 2.8% on the December 31, 2004 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.
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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 2004
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, 2005 June 30, 2004 June 30, 2005 June 30, 2004
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Net Interest Income $ 3,022 $ 2,887 $ 5,988 $5,734
Provision for Loan Losses 60 90 300 260
Noninterest Income 758 844 1,516 1,536
Noninterest Expense 2,382 2,205 4,752 4,376
Net Income After Income Taxes 923 988 1,689 1,811
Net Income Per Common Share,
Basic and Diluted $ 0.67 $ 0.71 $ 1.22 $ 1.29
As of As of As of
June 30, 2005 December 31, 2004 June 30, 2004
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Net Loans $287,829 $280,899 $280,472
Total Assets 376,429 364,183 375,942
Total Deposits 290,333 277,735 285,011
Return on Average Equity 13.0% 14.5% 14.4%
Return on Average Assets .90 .99 .96
Net Interest Margin (tax equivalent) 3.55 3.50 3.40
Allowance as a Percent of Total Loans 1.19 1.19 1.16
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