Iowa First Bancshares Corp. (OTC Pink: IOFB) today reported net income of $1,101,000 for the quarter ended September 30, 2016, compared to net income of $1,090,000 for the quarter ended September 30, 2015. The increase in third quarter net income year-over-year of $11,000 (1.0%) was primarily attributable to higher net interest income of $99,000 (2.7%). This increase in net interest income was augmented by a $66,000 (7.5%) increase in noninterest income. Noninterest expense increased $44,000 (1.6%) and provision for loan losses was raised $135,000 or (450%). This large percentage increase in the provision is the result of three primary factors: 1) comparison of this year's number to a relatively small provision for loan losses recognized in the prior year; 2) an increase in loans outstanding of $21,866,000 (5.9%) from September 30, 2015 to September 30, 2016; and 3) a year-over-year increase of 48.3% in nonperforming assets, which totaled $3,329,000 at September 30, 2016. While higher than in the recent past, the nonperforming assets represent a very manageable .84% of gross loans outstanding. Income tax expense declined $25,000 or 4.3% when comparing the third quarter of 2016 to the same quarter in 2015. The Company recorded net income of $3,182,000 for the nine months ended September 30, 2016, compared with net income of $3,125,000 for the three quarters ended September 30, 2015, an increase of $57,000 (1.8%). The primary factors contributing to this earnings improvement included a $433,000 (4.0%) increase in net interest income and an $113,000 (4.4%) increase in noninterest income. Offsetting some of these income gains, noninterest expense increased $259,000 (3.1%) and provision for loan losses was raised $285,000 (317%). Income tax expense declined $55,000 (3.3%). Basic and diluted earnings per share were $2.82 for the nine months ended September 30, 2016, up $.05 or 1.8% from the same period in 2015. The Company's annualized return on average assets for the first three quarters of 2016 and 2015 was .91% and .94%, respectively. The Company's annualized return on average equity for the nine months ended September 30, 2016 and September 30, 2015 was 9.1% and 9.6%, respectively.