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, 2000

                              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, 2000 there were 1,533,001 shares of the  registrant's  common stock
outstanding.
<PAGE>



                  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,
                     2000 and December 31, 1999

                   Consolidated Condensed Statements of Operations,
                     Three Months Ended March 31, 2000 and 1999

                   Consolidated Condensed Statements of Cash Flows,
                     Three Months Ended March 31, 2000 and 1999

                   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
<PAGE>



                  IOWA FIRST BANCSHARES CORP. AND SUBSIDIARIES
                      CONSOLIDATED CONDENSED BALANCE SHEETS
                                 (In Thousands)
                                   (Unaudited)

                                                          March 31, December 31,
                                                            2000        1999
                                                         -----------------------
ASSETS

Cash and due from banks ................................  $  13,532   $  15,304

Investment securities available for sale ...............     66,585      62,950

Federal funds sold and securities
  purchased under resale agreements ....................      3,475      15,800

Loans, net of allowance for possible loan
  losses March 31, 2000, $3,128;
  December 31, 1999, $3,091 ............................    270,473     266,992

Bank premises and equipment, net .......................      5,339       5,456

Other assets ...........................................      4,419       4,527
                                                          ---------------------

      TOTAL ASSETS .....................................  $ 363,823   $ 371,029
                                                          =====================

LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES

Noninterest bearing deposits ...........................  $  42,408   $  47,175
Interest bearing deposits ..............................    221,236     222,397
                                                          ---------------------
      TOTAL DEPOSITS ...................................  $ 263,644   $ 269,572
Notes Payable ..........................................      6,828       6,869
Securities sold under agreements to
  repurchase ...........................................      3,767       4,626
Federal Home Loan Bank advances ........................     64,995      64,621
Treasury tax and loan open note ........................        948       2,211
Other liabilities ......................................      2,038       1,937
                                                          ---------------------

     TOTAL LIABILITIES .................................  $ 342,220   $ 349,836
                                                          ---------------------

STOCKHOLDERS' EQUITY

Common Stock ...........................................  $     200   $     200
Surplus ................................................      4,349       4,349
Retained earnings ......................................     28,147      27,585
                                                          ---------------------
                                                          $  32,696   $  32,134
Accumulated other comprehensive (loss) .................       (716)       (649)
Less net cost of common shares acquired for the treasury    (10,377)    (10,292)
                                                          ---------------------
      TOTAL STOCKHOLDERS' EQUITY .......................  $  21,603   $  21,193
                                                          ---------------------

     TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY ........  $ 363,823   $ 371,029
                                                          =====================

See Notes to Consolidated Condensed Financial Statements.
<PAGE>


                  IOWA FIRST BANCSHARES CORP. AND SUBSIDIARIES
                 CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

                      (In Thousands, Except Per Share Data)
                                   (Unaudited)

                                                              Three Months Ended
                                                                   March 31,
                                                              ------------------
                                                                2000       1999
                                                              ------------------

INTEREST INCOME:
   Interest and fees on loans ............................     $5,493     $5,061
   Interest on investment securities available for sale ..        954        834
   Interest on federal funds sold and securities
     purchased under resale agreements ...................         97        127
                                                               -----------------

   Total interest income .................................     $6,544     $6,022
                                                               -----------------

INTEREST EXPENSE:
   Interest on deposits ..................................     $2,464     $2,300
   Interest on notes payable .............................        128        133
   Interest on other borrowed funds ......................      1,063        835
                                                               -----------------

   Total interest expense ................................     $3,655     $3,268
                                                               -----------------

   Net interest income ...................................     $2,889     $2,754

Provision for loan losses ................................         42         54
                                                               -----------------

   Net interest income after provision for
      loan losses ........................................     $2,847     $2,700

Investment securities gains ..............................          8       --
Other income .............................................        516        455
Other expense ............................................      2,083      1,972
                                                               -----------------

   Income before income taxes ............................     $1,288     $1,183
Applicable income taxes ..................................        404        374
                                                               -----------------
Net income ...............................................     $  884     $  809
                                                               =================
Net income per common share:
   Basic .................................................     $ 0.58     $ 0.53
                                                               =================

   Diluted ...............................................     $ 0.58     $ 0.53
                                                               =================

Dividends declared per common share ......................     $ 0.21     $ 0.21
                                                               =================

Comprehensive income .....................................     $  817     $  578
                                                               =================

See Notes to Consolidated Condensed Financial Statements.
<PAGE>


                  IOWA FIRST BANCSHARES CORP. AND SUBSIDIARIES
                 CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
               For The Three Months Ended March 31, 2000 and 1999
                                 (In Thousands)
<TABLE>


                                                                        2000        1999
                                                                      --------------------
<S>                                                                   <C>         <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income ........................................................   $    884    $    809
Adjustments to reconcile net income to net cash provided by
  operating activities:
   Proceeds from  FHLMC ...........................................        - -         994
   Loans underwritten for FHLMC ...................................        - -        (987)
   Gains on loans sold to FHLMC ...................................        - -          (7)
   Provision for loan losses ......................................         42          54
   Investment securities (gains), net .............................         (8)        - -
   Depreciation ...................................................        160         159
   Amortization of premiums and accretion of discounts
     on investment securities available for sale, net .............         16          39
  (Increase) decrease in other assets .............................        126        (509)
   Increase (decrease) in other liabilities .......................        100        (130)
                                                                      --------------------
Net cash provided by operating activities .........................   $  1,320    $    422
                                                                      --------------------

CASH FLOWS FROM INVESTING ACTIVITIES
   Net (increase) decrease in federal funds sold ..................   $ 12,325    $ (2,270)
   Proceeds from sales, maturities, calls and paydowns of available
   for sale securities ............................................      2,698       5,595
   Purchases of available for sale securities .....................     (6,426)    (11,280)
   Net (increase) in loans ........................................     (3,523)     (7,590)
   Purchases of bank premises and equipment .......................        (43)        (33)
                                                                      --------------------
   Net cash provided by (used in) investing activities ............   $  5,031    $(15,578)
                                                                      --------------------

CASH FLOWS FROM FINANCING ACTIVITIES
   Net increase (decrease) in noninterest bearing deposits ........   $ (4,767)   $  1,713
   Net increase (decrease) in interest bearing deposits ...........     (1,161)      9,445
   Net increase (decrease) in securities sold under
     agreements to repurchase .....................................       (859)        206
   Repayment of notes payable .....................................        (41)        - -
   Net increase (decrease) in other borrowings ....................       (889)      1,367
   Cash dividends paid ............................................       (321)       (320)
   Purchases of common stock for the treasury .....................        (85)        - -
                                                                      --------------------
   Net cash provided by (used in) financing activities ............   $ (8,123)   $ 12,411
                                                                      --------------------

   Net (decrease) in cash and due from banks ......................     (1,772)     (2,745)

Cash and due from banks:
   Beginning ......................................................     15,304      14,408
                                                                      --------------------
   Ending .........................................................   $ 13,532    $ 11,663
                                                                      ====================

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
   Cash payments for:
     Interest .....................................................   $  3,638    $  3,198

     Income taxes .................................................   $     44    $     24
</TABLE>

See notes to Consolidated Condensed Financial Statements.
<PAGE>




                  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
headquartered in Muscatine,  Iowa. The Company owns the outstanding stock of two
national banks, First National Bank of Muscatine  (Muscatine) and First National
Bank in Fairfield  (Fairfield).  First National Bank of Muscatine has a total of
five  locations in  Muscatine,  Iowa.  First  National Bank in Fairfield has two
locations in  Fairfield,  Iowa.  Each bank is engaged in the general  commercial
banking   business  and  provides  full  service   banking  to  individuals  and
businesses,  including checking, savings and other deposit accounts,  commercial
loans, consumer loans, real estate loans, safe deposit facilities,  transmitting
of funds,  trust  services,  and such other  banking  services  as are usual and
customary for commercial banks.

Significant accounting policies:

   Accounting Estimates:

   The preparation of financial statements in conformity with generally accepted
   accounting  principles  requires management to make estimates and assumptions
   that affect the reported  amount of assets and  liabilities and disclosure of
   contingent assets and liabilities at the date of the financial statements and
   the reported amounts of revenues and expenses during the reporting  period. A
   significant  estimate which is particularly  susceptible to change in a short
   period of time relates to the determination of the allowance for loan losses.
   Actual results could differ from those estimates.

   Principles of consolidation:

   The accompanying  consolidated  financial  statements include the accounts of
   the  Company  and  its  wholly-owned  subsidiaries,  First  National  Bank of
   Muscatine  and  First  National  Bank  in  Fairfield  (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 includes cash
   on-hand,  amounts due from banks, and 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.
<PAGE>


   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 Banks recognize interest income on
   impaired loans on a cash basis.

   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.  Subsequent  write-downs to fair value are charged
   to earnings.

   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.
<PAGE>


   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.  Diluted 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 2000 and 1999 were
1,536,538 and 1,532,424, respectively. There were no common stock equivalents in
2000 or 1999.
<PAGE>


                  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, 2000,  were  $363,823,000.  Muscatine's
total assets were $267,688,000  which reflects a $4,712,000 (1.7%) decrease from
December 31, 1999,  total assets.  Fairfield's  total assets were $95,542,000 at
March 31,  2000,  which is a decrease  of  $2,106,000  (2.2%)  when  compared to
December 31, 1999,  total assets.  Total  consolidated  assets decreased by 1.9%
during the first three months of 2000.

Net loans  totaled  $270,473,000  at March  31,  2000.  Net  loans at  Muscatine
increased  by  $2,910,000  (1.5%)  during  the  first  three  months.  Net loans
increased  at  Fairfield  by  $571,000  (0.8%)  during the first  three  months.
Consolidated net loans increased by $3,481,000 (1.3%) year-to-date.

Total available for sale securities  increased $3,635,000 during the first three
months of 2000 while  federal  funds sold  decreased  $12.3  million.  The Banks
emphasize  purchase of securities with maturities of five years and less as such
purchases  offer  reasonable  yields with 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, 2000,  less than 35% of investment
securities  mature in more than five years and less than 10% mature in more than
ten years.  One  security has been sold during the year with  proceeds  totaling
$18,000. A gain of $8,000 was recognized on this sale.

Total  deposits at March 31,  2000,  were  $263,644,000.  Deposits at  Muscatine
decreased  $3,705,000 (2.0%) from the prior year end. Fairfield's total deposits
decreased  $2,235,000 (2.8%) during the same period.  This represents a combined
deposit  decrease of nearly $6 million  (2.2%) for the Company  during the first
three  months  of  2000.  Additionally,  securities  sold  under  agreements  to
repurchase  decreased  $859,000 and advances borrowed from the Federal Home Loan
Bank increased $374,000 to total $65 million at quarter end.

Results of Operations

Consolidated  net income was $884,000,  or $.58 per share, for the first quarter
of 2000.  This was  $75,000 or 9.3% more than the same  period  last  year.  Net
interest income grew from the first quarter of 1999 to the first quarter of 2000
by  $135,000  (4.9%),  other  income  increased  over the same period by $61,000
(13.4%),  and  operating  expenses  grew  $111,000  (5.6%).

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.  The  interest  expense  associated  with the debt
incurred to purchase  treasury  shares  also adds  pressure to the net  interest
income.  Finally, the intense competition for all types of loans does not afford
the Company much pricing power when dealing with borrowers.

Provisions  for loan losses were  $42,000 for the three  months  ended March 31,
2000, this was $12,000 less than the first quarter of 1999. Net loan charge-offs
totaled only $5,000 compared to net charge-offs of $83,000 for the first quarter
of 1999.

Nonaccrual loans totaled  $452,000 at March 31, 2000,  $41,000 less than the end
of the first  quarter in 1999.  Other real  estate  owned  totaled  $411,000,  a
reduction  of  $225,000,  and loans past due 90 days or more and still  accruing
totaled  only  $38,000  which  was  $315,000  less  than at the end of the first
quarter of 1999.  The reserve for loan losses of $3,128,000  represents  1.2% of
net loans and 347% 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 61.2% for the first three months of
2000 compared to 59.7% for all of 1999.
<PAGE>


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.

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, 2000, rate sensitive liabilities exceeded
rate sensitive assets within a one year maturity range and, thus, the Company is
theoretically  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, 2000, were $263,644,000 or 72% of total liabilities and equity.

Securities  available for sale with a cost totaling  $67,705,000  at quarter-end
included net unrealized  losses of $1,120,000.  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.
<PAGE>


Capital

Stockholders'  equity increased $410,000 during the three months ended March 31,
2000.

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, 2000 with the requirements
to be considered adequately capitalized is presented below.

                                                          For Capital
                                             Actual     Adequacy Purposes
                                             ----------------------------

Tier 1 risk-based capital                     8.50%           4.00%
Total risk-based capital                      9.72%           8.00%
Tier 1 leverage ratio                         6.04%           4.00%


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.
<PAGE>


                  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 20, 2000, the
shareholders elected the following individuals to the Board of Directors for the
indicated terms:

                        Votes in Favor   Votes Against    Term
                        ----------------------------------------

Larry L. Emmert            1,271,087           0         3 Years
David R. Housley           1,264,769           0         3 Years
George A. Shepley          1,266,479           0         3 Years
Kim K. Bartling            1,269,479           0         3 Years


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, 2000.

<PAGE>



                  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 15, 2000                 /s/ George A. Shepley
----------------             -------------------------------------
Date                         George A. Shepley, Chairman of
                             the Board and Chief Executive Officer


May 15, 2000                 /s/ Kim K. Bartling
----------------             -------------------------------
Date                         Kim K. Bartling, Executive Vice
                             President, Chief Operating
                             Officer & Treasurer