Iowa First Bancshares Corp. has revised its 2017 net income, in light of "a significant deterioration in loan quality" and a resulting increased provision for loan losses.
The adjustment lowered the Muscatine, Iowa-based company's full-year net income by $400,000 to $2.4 million.
Iowa First is the holding company of First National Bank of Muscatine and First National Bank in Fairfield. The issues with loan quality were largely found at the latter, and the company said actions have been taken to address the matter, including changes in bank senior management. Iowa First is also considering a capital infusion that would raise the bank's Tier 1 capital-to-average assets ratio to at least 9.0% from 7.8% and its total capital-to-risk-weighted assets ratio to at least 12.0% from 11.0%.
