Iowa First Bancshares Corp., Muscatine, reported mixed results for 2018. The holding company’s net income of $2,311,000 for the year was $87,000 less than in 2017. The two subsidiary banks owned by Iowa First — First National Bank of Muscatine and First National Bank in Fairfield — reported divergent results.
On the bright side, Muscatine’s 2018 net income of $3,414,000 exceeded 2017’s by $487,000. But Fairfield experienced a net loss last year totaling $749,000. The Fairfield loss resulted from lower net interest income and “the need for large provisions for loan losses due to high levels of problem loans and charge-offs,” according to a company press release.
The bank said actions have been taken to “address the loan quality and credit administration weaknesses at Fairfield, including changes in bank senior management, policies, procedures, committee functions and board oversight, along with intensified training for loan officers and support staff.”