UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
FORM 10-Q
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934.
For the quarterly period ended March 31, 1998
OR
____ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934.
For the transition period from _______ to _______
Commission file number 2-89283
IOWA FIRST BANCSHARES CORP.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
STATE OF IOWA 42-1211285
- ------------------------------- -------------------
(State or other jurisdiction (IRS Employer of
incorporation or organization) Identification No.)
300 East Second Street
Muscatine, Iowa 52761
----------------------------------------
(Address of principal executive offices)
319-263-4221
-------------------------------
(Registrant's telephone number)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. YES X NO _____
At March 31, 1998 there were 1,827,129 shares of the registrant's common stock
outstanding.
IOWA FIRST BANCSHARES CORP. AND SUBSIDIARIES
INDEX TO FORM 10-Q
PAGE NO.
PART 1 Financial Information
Item 1. Financial Statements
Consolidated Condensed Balance Sheets,
March 31, 1998 and December 31, 1997
Consolidated Condensed Statements of
Operations, Three Months Ended
March 31, 1998 and 1997
Consolidated Condensed Statements of
Cash Flows, Three Months Ended
March 31, 1998 and 1997
Notes to Consolidated Condensed
Financial Statements
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of
Operations
PART II Other Information
Item 4. Submission of Matters to a Vote of
Security Holders
Item 6. Exhibits and Reports on Form 8-K
Signatures
IOWA FIRST BANCSHARES CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(In Thousands)
(Unaudited)
March 31, December 31,
1998 1997
-------------------
ASSETS
Cash and due from banks ....................................... $ 12,852 $ 12,726
Investment securities available for sale (cost March 31, ...... 61,893 65,496
1998, $61,142; December 31, 1997, $64,758)
Federal funds sold and securities
purchased under resale agreements .......................... 21,980 9,795
Loans, net of allowance for possible loan
losses March 31, 1998, $2,616;
December 31, 1997, $2,604 .................................. 219,976 208,683
Bank premises and equipment, net .............................. 5,962 6,055
Other assets .................................................. 3,268 3,028
--------------------
TOTAL ASSETS ............................................... $325,931 $305,783
===================
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Noninterest bearing deposits .................................. $ 36,309 $ 38,212
Interest bearing deposits ..................................... 218,001 204,570
-------------------
TOTAL DEPOSITS ............................................. $254,310 $242,782
Securities sold under agreements to
repurchase ................................................. 5,379 4,259
Federal Home Loan Bank advances ............................... 33,335 26,468
Treasury tax and loan open note ............................... 1,634 1,456
Other liabilities ............................................. 2,342 2,193
-------------------
TOTAL LIABILITIES .......................................... $297,000 $277,158
-------------------
STOCKHOLDERS' EQUITY
Common Stock .................................................. $ 200 $ 200
Surplus ....................................................... 4,440 4,440
Retained earnings ............................................. 23,978 23,522
-------------------
$ 28,618 $ 28,162
Accumulated other comprehensive income, unrealized gains
(losses) on securities available for sale, net .............. 471 463
Less net cost of common shares acquired for the treasury ...... 158 --
-------------------
TOTAL STOCKHOLDERS' EQUITY ................................. $ 28,931 $ 28,625
-------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY .................... $325,931 $305,783
===================
See notes to Consolidated Condensed Financial Statements.
IOWA FIRST BANCSHARES CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Data)
(Unaudited)
Three Months Ended
March 31,
------------------
1998 1997
---------------
INTEREST INCOME:
Interest and fees on loans .................. $4,425 $3,913
Interest on investment securities ........... 920 973
Interest on federal funds sold and securities
purchased under resale agreements ......... 226 96
---------------
Total interest income ....................... $5,571 $4,982
---------------
INTEREST EXPENSE:
Interest on deposits ........................ $2,340 $2,137
Interest on repurchase agreements and other
borrowings ................................ 559 246
---------------
Total interest expense ...................... $2,899 $2,383
---------------
Net interest income ......................... $2,672 $2,599
Provision for loan losses ...................... 18 3
---------------
Net interest income after provision for
loan losses .............................. $2,654 $2,596
Investment securities gains (losses) ........... 4 11
Other income ................................... 412 394
Other expense .................................. 1,833 1,721
---------------
Income before income taxes .................. $1,237 $1,280
Applicable income taxes ........................ 397 406
---------------
Net income ..................................... $ 840 $ 874
===============
Net income per common share:
Basic ....................................... $ 0.46 $ 0.50
===============
Diluted ..................................... $ 0.46 $ 0.49
===============
Dividends declared per common share ............ $ 0.21 $ 0.19
===============
Comprehensive income ........................... $ 848 $ 696
===============
See notes to Consolidated Condensed Financial Statements.
IOWA FIRST BANCSHARES CORP. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
For The Three Months Ended March 31, 1998 and 1997
(In Thousands)
1998 1997
--------------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income .................................................. $ 840 $ 874
Adjustments to reconcile net income to net cash
provided by operating activities:
Proceeds from FHLMC ..................................... 88 --
Loans underwritten for FHLMC ............................. (87) --
Gains on loans sold to FHLMC ............................. (1) --
Provision for loan losses ................................ 18 3
Investment securities (gains) losses, net ................ (4) (11)
Depreciation ............................................. 154 92
Amortization of premiums and accretion of discounts
on loans and investment securities, net ................ 30 49
(Increase) decrease in other assets ....................... (240) (123)
Increase in other liabilities ............................ 146 (217)
--------------------
Net cash provided by operating activities ................... $ 944 $ 667
--------------------
CASH FLOWS FROM INVESTING ACTIVITIES
Net (increase) in federal funds sold ..................... $(12,185) $ (4,867)
Proceeds from maturities of investment securities ........ 5,253 4,182
Proceeds from sales of investment securities ............. 453 1,669
Purchases of investment securities ....................... (2,129) (6,548)
Net (increase) in loans .................................. (11,311) (3,321)
Purchases of bank premises and equipment ................. (61) (302)
--------------------
Net cash (used in) investing activities .................. $(19,980) $ (9,187)
--------------------
CASH FLOWS FROM FINANCING ACTIVITIES
Net (decrease) in noninterest bearing deposits ........... $ (1,903) $ (8,895)
Net increase in interest bearing deposits ................ 13,431 11,445
Net increase (decrease) in securities sold under
agreements to repurchase ............................... 1,120 (1,949)
Net increase in other borrowings ......................... 7,045 5,553
Cash dividends paid ...................................... (374) (331)
Reissuance of treasury stock ............................. 3 263
Purchases of common stock for the treasury ............... (160) (136)
--------------------
Net cash provided by financing activities ................ $ 19,162 $ 5,950
--------------------
Net increase in cash and due from banks .................. 126 (2,570)
Cash and due from banks:
Beginning ................................................ $ 12,726 $ 14,914
--------------------
Ending ................................................... $ 12,852 $ 12,344
====================
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash payments for:
Interest ................................................ $ 2,873 $ 2,355
Income taxes ............................................ $ -- $ --
See notes to Consolidated Condensed Financial Statements.
IOWA FIRST BANCSHARES CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
Note 1. Nature of Business and Significant Accounting Policies
Nature of business:
Iowa First Bancshares Corp. (the "Company") is a bank holding company providing
bank and bank related services through its subsidiaries.
Significant accounting policies:
Principles of consolidation:
The accompanying consolidated financial statements include the accounts of
the Company and its wholly-owned subsidiaries, First National Bank of
Muscatine (Muscatine) and First National Bank in Fairfield (Fairfield),
collectively referred to herein as (Banks). All material intercompany
accounts and transactions have been eliminated in consolidation. The
unaudited interim financial statements presented reflect all adjustments
which are, in the opinion of management, necessary to a fair statement of
the results for the interim periods. All such adjustments are of a normal
recurring nature.
Presentation of cash flows:
For purposes of reporting cash flows, cash and due from banks include cash
on-hand and amounts due from banks, including cash items in process of
clearing. Cash flows from demand deposits, NOW accounts, savings accounts,
federal funds sold, securities sold under agreements to repurchase, Federal
Home Loan Bank advances, TT&L open note, certificates of deposits, and loans
are reported net.
Investment securities available for sale:
Securities available for sale are accounted for at fair value and the
unrealized holding gains or losses are presented as a separate component of
stockholders' equity, net of their deferred income tax effect.
Realized gains or losses, determined using the specific-identification
method, are included in earnings.
Declines in the fair value of individual available-for-sale securities below
their cost that are other than temporary would result in write-downs of the
individual securities to their fair value. The related write-downs would be
included in earnings as realized losses.
Premiums and discounts are recognized in interest income using the interest
method over the period to maturity. There were no investments held to
maturity or for trading purposes at quarter-end.
Loans:
Loans are stated at the amount of unpaid principal, reduced by unearned
discount and an allowance for loan losses. The Banks record impaired loans
at the present value of expected future cash flows discounted at the loan's
effective interest rate, or as an expedient, at the loan's observable market
price or the fair value of the collateral if the loan is collateral
dependent. A loan is impaired when it is probable the creditor will be
unable to collect all contractual principal and interest payments due in
accordance with the terms of the loan agreement.
The allowance for loan losses is maintained at the level considered adequate
by management of the Banks to provide for losses that can be reasonably
anticipated. The allowance is increased by provisions charged to operating
expense and reduced by net charge-offs. In determining the adequacy of the
allowance balance, the Banks make continuous credit reviews of the loan
portfolio and related off-balance sheet commitments, consider current
economic conditions, historical loan loss experience, review of specific
problem loans and other factors.
Unearned interest on discounted loans is amortized to income over the life
of the loans using the interest method. For all other loans, interest is
accrued daily on the outstanding balances. Accrual of interest is
discontinued on a loan when management believes, after considering
collection efforts and other factors, that the borrower's financial
condition is such that collection of interest is doubtful. Generally this
occurs when the collection of interest or principal has become 90 days past
due.
Direct loan and lease origination fees and costs are generally being
deferred and the net amount amortized as an adjustment of the related loan's
yield. The Banks generally amortize these amounts over the contractual life.
Commitment fees based upon a percentage of customers' unused lines of credit
and fees related to standby letters of credit are not significant.
Bank premises and equipment:
Bank premises and equipment are stated at cost less accumulated
depreciation. Depreciation is computed primarily by the straight-line method
based on estimated useful lives.
Other assets:
Other real estate (ORE), which is included in other assets, represents
properties acquired through foreclosure, in-substance foreclosure or other
proceedings. ORE is recorded at the lower of the amount of the loan or fair
market value of the properties. Any write-down to fair market value at the
time of transfer to ORE is charged to the allowance for loan losses.
Property is evaluated regularly to ensure that the recorded amount is
supported by the current fair market value.
Income taxes:
The Company files its tax return on a consolidated basis with its subsidiary
banks. The entities follow the direct reimbursement method of accounting for
income taxes under which income taxes or credits which result from the
subsidiary banks' inclusion in the consolidated tax return are paid to or
received from the parent company.
Deferred taxes are provided on a liability method whereby deferred tax
assets are recognized for deductible temporary differences and operating
loss and tax credit carryforwards and deferred liabilities are recognized
for taxable temporary differences. Temporary differences are the differences
between the reported amounts of assets and liabilities and their tax bases.
Deferred tax assets are reduced by a valuation allowance when, in the
opinion of management, it is more likely than not that some portion or all
of the deferred assets will not be realized. Deferred tax assets and
liabilities are adjusted for the effects of changes in tax laws and rates on
the date of enactment.
Deferred income taxes have not been provided on the equity in undistributed
net income of the subsidiaries as the entities file a consolidated income
tax return.
Trust assets:
Trust assets (other than cash deposits) held by the Banks in fiduciary or
agency capacities for its customers are not included in the accompanying
consolidated balance sheets since such items are not assets of the Banks.
Fair value of financial instruments:
FAS No. 107, Disclosures about Fair Market Value of Financial Instruments,
requires disclosure of fair value information about financial instruments,
whether or not recognized in the balance sheet, for which it is practicable
to estimate that value. Interim condensed financial statements are not
required to include the disclosures outlined by FAS 107 and, accordingly,
are not included herein.
Note 2. Capital Stock and Earnings Per Share
Common shares and preferred stock authorized total 6,000,000 shares and 500,000
shares, respectively. Basic earnings per share is arrived at by dividing net
income by the weighted average number of shares of common stock outstanding for
the respective period. Dilutive earnings per share is arrived at by dividing net
income by the weighted average number of common stock and common stock
equivalents outstanding for the respective period. The average number of shares
of common stock outstanding for the first three months of 1998 was 1,828,182.
Note 3. Subsequent Events
On May 4, 1998, the Company entered into a signed agreement to purchase shares
representing approximately 16.5% of the previously outstanding common stock of
the Company. These shares will be purchased from a director of Iowa First
Bancshares Corp. as well as various companies controlled or influenced by him,
his family, his business associates and charities. The purchase of these shares
was approved by the required regulators. The majority of the purchase price of
approximately $10,600,000 will be funded by debt financing in May 1998. The
Company anticipates only about 50% of the purchase price being borrowed for more
than one year.
IOWA FIRST BANCSHARES CORP. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Discussion and Analysis of Financial Condition
The Company's total assets at March 31, 1998, were $325,931,000. Muscatine's
total assets were $234,808,000 which reflects a $19,703,000 (9.2%) increase from
December 31, 1997, total assets. Fairfield's total assets were $88,227,000 at
March 31, 1998, which is an increase of $695,000 (0.8%) when compared to
December 31, 1997, total assets. Total consolidated assets increased by 6.6%
during the first three months of 1998.
Net loans totaled $219,976,000 at March 31, 1998. Net loans at Muscatine
increased by $11,054,000 (7.3%) during the first three months. Net loans
increased at Fairfield by $239,000 (0.4%) during the first three months.
Consolidated net loans increased by $11,293,000 (5.4%) year-to-date.
Total available for sale securities decreased $3,603,000 during the first three
months of 1998 while federal funds sold increased $12.2 million. The Banks
emphasize purchase of securities with maturities of five years and less as such
purchases offer reasonable yields with very little credit risk as well as
limited interest rate risk. Additionally, selected securities with longer
maturities have been purchased in order to enhance overall portfolio yield
without significantly increasing risk. At March 31, 1998, less than 30% of
investment securities mature in more than five years and less than 10% mature in
more than ten years. Securities totaling approximately $450,000 have been sold
during the year, generating net gains of $4,000.
Total deposits at March 31, 1998, were $254,310,000. Deposits at Muscatine
increased $11,861,000 from the prior year end. Fairfield's total deposits
decreased $345,000 during the same period. This represents a combined deposit
increase of $11.5 million (4.7%) for the Company during the first three months
of 1998. Additionally, securities sold under agreements to repurchase increased
$1.1 million and advances borrowed from the Federal Home Loan Bank increased
$6.9 million to total $33.3 million at quarter end.
Results of Operations
Consolidated net income was $840,000, or $.46 per share, for the first quarter
of 1998. This was $34,000 or 3.9% less than the same period last year, but
approximately 8% greater than budgeted. The primary reasons for the decline in
net income were the costs associated with opening two new branches and replacing
another branch. Also, significant resources were devoted to expanding and
enhancing our sales culture as well as installing and training personnel to
operate new item processing equipment, a new local area network computer system
and other computer hardware and software.
The Company has been able to expand net interest income, as compared to the
prior year by actively managing asset quality, growth of the loan portfolio, and
rates paid on assets and liabilities. Management has expressed concern for
several quarters, however, as to the ability to continue increasing net interest
income each successive quarter. The increased usage of wholesale funding
sources, while mitigating intermediate and long-term interest rate risk,
increases interest expense. As a result, margins are put under pressure with the
goal of increasing volume sufficiently to more than offset the margin reduction,
thus, improving earnings over time.
Provisions for loan losses were $18,000 for the three months ended March 31,
1998, this was $15,000 more than the first quarter of 1997. Net loan charge-offs
totaled $7,000 compared to net recoveries of $14,000 for the first quarter of
1997.
Nonaccrual loans totaled $1,297,000 at March 31, 1998, $146,000 less than the
end of the first quarter in 1997. Other real estate owned totaled $9,000, and
loans past due 90 days or more and still accruing totaled $839,000. The reserve
for loan losses of $2,616,000 represents 1.2% of net loans and 122% of total
nonaccrual loans, other real estate owned, and loans past due 90 days or more
and still accruing.
The efficiency ratio, defined as noninterest expense as a percent of net
interest income plus noninterest income, was 59.4% for the first three months of
1998 compared to 61.1% for all of 1997.
Interest Rate Sensitivity
The Company manages its balance sheet to minimize the impact of interest rate
movements on its earnings. The term "rate sensitive" refers to those assets and
liabilities which are "sensitive" to fluctuations in rates and yields. When
interest rates move, earnings may be affected in many ways. Interest rates on
assets and liabilities may change at different times or by different amounts.
Maintaining a proper balance between rate sensitive earning assets and rate
sensitive liabilities is the principal function of asset and liability
management of a banking organization.
The following table shows the interest rate sensitivity position at several
repricing intervals (dollar amounts in thousands):
Repricing Maturities at March 31, 1998
-----------------------------------------------------------
Less Than 1-5 More Than Noninterest
One Year Years 5 Years Bearing Total
-----------------------------------------------------------
Assets:
Loans .................................... $ 78,361 $ 84,038 $ 58,896 $ 1,297 $ 222,592
Investment securities .................... 14,605 29,662 17,616 10 61,893
Other earning assets ..................... 22,069 -- -- -- 22,069
Nonearning assets ........................ -- -- -- 19,377 19,377
-----------------------------------------------------------
Total assets .......................... $ 115,035 $ 113,700 $ 76,512 $ 20,684 $ 325,931
===========================================================
Liabilities and Equity:
Deposits ................................. $ 164,260 $ 53,741 $ -- % 36,309 $ 254,310
Other purchased funds .................... 8,013 28,335 4,000 -- 40,348
Other liabilities ........................ -- -- -- 2,342 2,342
Equity ................................. -- -- -- 28,931 28,931
-----------------------------------------------------------
Total liabilities and equity ......... $ 172,273 $ 82,076 $ 4,000 $ 67,582 $ 325,931
===========================================================
Repricing gap .............................. $ (57,238) $ 31,624 $ 72,512 $(46,898) $ --
Cumulative repricing gap ................... $ (57,238) $ (25,614) $ 46,898 $ -- $ --
The data in this table incorporates the contractual characteristics as well as
an estimate of the actual repricing characteristics of the Company's assets and
liabilities. Based on the estimate, fifty percent of the savings and NOW
accounts are reflected in the less than one year category, with the remaining
50% in the 1-5 year time frame. Money market accounts are estimated as 100% in
the less than one year category.
A positive repricing gap for a given period exists when total interest-earning
assets exceed total interest-bearing liabilities and a negative gap exists when
total interest-bearing liabilities are in excess of interest-earning assets.
Generally a positive repricing gap will result in increased net interest income
in a rising rate environment and decreased net interest income in a falling rate
environment. A negative repricing gap tends to produce increased net interest
income in a falling rate environment and decreased net interest income in a
rising rate environment. At March 31, 1998, rate sensitive liabilities exceeded
rate sensitive assets within a one year maturity range by $57.2 million and,
thus, the Company is positioned to benefit from a decline in interest rates
within the next year.
The Company's repricing gap position is useful for measuring general relative
risk levels. However, even with perfectly matched repricing of assets and
liabilities, interest rate risk cannot be avoided entirely. Interest rate risk
remains in the form of prepayment risk of assets and liabilities, timing lags in
adjusting certain assets and liabilities that have varying sensitivities to
market interest rates, and basis risk. Basis risk refers to the possibility that
the repricing behavior of variable-rate assets could differ from the repricing
characteristics of liabilities which reprice in the same time period. Even
though these assets are match-funded, the spread between asset yields and
funding costs could change.
Because the repricing gap position does not capture these risks, Management
utilizes simulation modeling to measure and manage the rate sensitivity exposure
of earnings. The Company's simulation model provides a projection of the effect
on net interest income of various interest rate scenarios and balance sheet
strategies.
Liquidity
For banks, liquidity represents ability to meet both loan commitments and
deposit withdrawals. Factors which influence the need for liquidity are varied,
but include general economic conditions, asset/liability mix, bank reputation,
future FDIC funding needs, changes in regulatory environment, and credit
standing. Assets which provide liquidity consist principally of loans, cash and
due from banks, investment securities, and short-term investments such as
federal funds. Maturities of securities held for investment purposes and loan
payments provide a constant flow of funds available for cash needs.
Additionally, liquidity can be gained by the sale of loans or securities prior
to maturity if such assets had previously been designated as available for sale.
Interest rates, relative to the rate paid by the security or loan sold, along
with the maturity of the security or loan, are the major determinates of the
price which can be realized upon sale.
The subsidiary banks do not have brokered deposits.
The stability of the Company's funding, and thus its ability to manage
liquidity, is greatly enhanced by its consumer deposit base. Consumer deposits
tend to be small in size, diversified across a large base of individuals, and
are government insured to the extent permitted by law. Total deposits at March
31, 1998, were $254,310,000 or 78% of total liabilities and equity.
Securities available for sale with a cost totaling $61,142,000 at quarter-end
included net unrealized gains of $751,000. These securities may be sold in whole
or in part to increase liquid assets, reposition the investment portfolio, or
for other purposes as defined by Management.
Capital
Stockholders' equity increased $306,000 during the three months ended March 31,
1998.
Federal regulatory agencies have adopted various capital standards for financial
institutions, including risk-based capital standards. The primary objectives of
the risk-based capital framework are to provide a more consistent system for
comparing capital positions of financial institutions and to take into account
the different inherent risks among financial institutions' assets and
off-balance-sheet items.
Risk-based capital standards have been supplemented with requirements for a
minimum Tier 1 capital to assets ratio (leverage ratio). In addition, regulatory
agencies consider the published capital levels as minimum levels and may require
a Financial Institution to maintain capital at higher levels.
A comparison of the Company's capital as of March 31, 1998 with the minimum
requirements is presented below.
Minimum
Actual Requirements
-------------------------
Tier 1 risk-based capital ........... 12.66% 4.00%
Total risk-based capital ............ 13.85% 8.00%
Tier 1 leverage ratio ............... 8.95% 3.00%
Impact of Inflation and Changing Prices
The financial statements and related data presented herein have been prepared in
accordance with generally accepted accounting principles, which require the
measurement of financial position and operating results in terms of historical
dollars without considering changes in the relative purchasing power of money
over time due to inflation. Unlike most industrial companies, virtually all of
the assets and liabilities of a financial institution are monetary in nature.
As a result, interest rates have a more significant impact on a financial
institution's performance than the effects of general levels of inflation.
Interest rates do not necessarily move in the same direction or in the same
magnitude as the price of goods and services. In the current interest rate
environment, liquidity and the maturity structure of the Company's assets and
liabilities are critical to the maintenance of acceptable performance levels.
Trends, Events or Uncertainties
Officers and Directors of the Company and its subsidiaries have had, and may
have in the future, banking transactions in the ordinary course of business of
the Company's subsidiaries. All such transactions are on substantially the same
terms, including interest rates on loans and collateral, as those prevailing at
the time for comparable transactions with others, involve no more than normal
risk of collectibility, and present no other unfavorable features.
In the normal course of business, the Banks are involved in various legal
proceedings. In the current opinion of management, any liability resulting from
such proceedings would not have a material effect on the Company's financial
statements.
IOWA FIRST BANCSHARES CORP. AND SUBSIDIARIES
OTHER INFORMATION
ITEM 4. Submission of Matters to a Vote of Security Holders.
At the Annual Meeting of the Company held at its offices on April 16, 1998, the
shareholders elected the following individuals to the Board of Directors for
three year terms:
Votes in Favor Votes Against
-------------- -------------
Roy J. Carver, Jr ........ 1,323,839 86,193
Dean H. Holst ............ 1,323,299 86,733
Dr. Victor G. McAvoy ..... 1,323,389 86,643
ITEM 6. Exhibits and reports on Form 8-K.
Reports on Form 8-K. No Form 8-K has been filed for
the quarter ended March 31, 1998.
IOWA FIRST BANCSHARES CORP. AND SUBSIDIARIES
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
IOWA FIRST BANCSHARES CORP.
(Registrant)
May 11, 1998 /s/ George A. Shepley
- ---------------- -------------------------------
Date George A. Shepley, Chairman of
the Board and Chief Executive Officer
May 11, 1998 /s/ Kim K. Bartling
- ---------------- -------------------------------
Date Kim K. Bartling, Executive Vice
President, Chief Operating
Officer & Treasurer