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 September 30, 2002
                                         ------------------

                              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)

                                  563-263-4221

                        -------------------------------
                         (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 September 30, 2002 there were  1,433,816  shares of the  registrant's  common
stock outstanding.


                                       1
<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,
                   September 30, 2002 and December 31, 2001                    3

                   Consolidated Condensed Statements of
                   Income, Three and Nine months Ended
                   September 30, 2002 and 2001                                 4

                   Consolidated Condensed Statements of
                   Cash Flows, Nine months Ended
                   September 30, 2002 and 2001                                 5

                   Notes to Consolidated Condensed
                   Financial Statements                                        6


          Item 2.  Management's Discussion and Analysis
                   of Financial Condition and Results of
                   Operations                                               7-13

          Item 4.  Controls and Procedures                                    14

PART II   Other Information

          Item 6.  Exhibits and Reports on Form 8-K                           15


Signatures                                                                    16

Section 302 Certifications                                                 17-18

                                       2
<PAGE>

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

<TABLE>
                                                        September 30,  December 31,
                                                             2002          2001
                                                        ---------------------------
<S>                                                     <C>            <C>
               ASSETS

Cash and due from banks ................................  $  18,215    $  14,661
Interest-bearing deposits at financial institutions ....      1,800        1,620
Federal funds sold .....................................     29,773       31,000
Investment securities available for sale ...............     39,099       44,466
Loans, net of allowance for loan
   losses September 30, 2002, $3,348;
   December 31, 2001, $3,182 ...........................    280,380      272,695
Bank premises and equipment, net .......................      5,190        5,055
Accrued interest receivable ............................      2,832        2,793
Life insurance contracts ...............................      3,904        3,361
Restricted investment securities .......................      3,957        3,868
Other assets ...........................................      1,151        1,078
                                                          ----------------------
   TOTAL ASSETS ........................................  $ 386,301    $ 380,597
                                                          ======================

LIABILITIES AND STOCKHOLDERS' EQUITY
            LIABILITIES

Noninterest bearing deposits ...........................  $  44,335    $  42,165
Interest bearing deposits ..............................    231,692      225,359
                                                          ----------------------
   TOTAL DEPOSITS ......................................    276,027      267,524
Notes payable ..........................................      3,300        5,419
Securities sold under agreements to
   repurchase ..........................................      5,860        5,068
Federal Home Loan Bank advances ........................     67,122       70,706
Treasury tax and loan open note ........................        841          622
Company obligated mandatorily redeemable preferred
  securities of subsidiary trust .......................      4,000        4,000
Dividends payable ......................................        326          331
Other liabilities ......................................      1,920        1,645
                                                          ----------------------
   TOTAL LIABILITIES ...................................    359,396      355,315
                                                          ----------------------

Redeemable common stock held by employee stock
ownership plan with 401(k) provisions (KSOP) ...........      2,516        2,242
                                                          ----------------------

STOCKHOLDERS' EQUITY
Common stock ...........................................        200          200
Additional paid-in capital .............................      4,263        4,265
Retained earnings ......................................     33,669       31,944
Accumulated other comprehensive income .................      1,271          858
Less net cost of common shares acquired for the treasury    (12,498)     (11,985)
Less maximum cash obligation related to KSOP shares ....     (2,516)      (2,242)
                                                          ----------------------
   TOTAL STOCKHOLDERS' EQUITY ..........................     24,389       23,040
                                                          ----------------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY .............  $ 386,301    $ 380,597
                                                          ======================
</TABLE>

See Notes to Consolidated Condensed Financial Statements.

                                       3
<PAGE>

                  IOWA FIRST BANCSHARES CORP. AND SUBSIDIARIES
                   CONSOLIDATED CONDENSED STATEMENTS OF INCOME
                      (In Thousands, Except Per Share Data)

                                   (Unaudited)

<TABLE>

                                                          Three Months Ended   Nine Months Ended
                                                             September 30,       September 30,
                                                          ------------------   -----------------
                                                            2002       2001     2002      2001
                                                           -------   -------   -------   -------
<S>                                                        <C>       <C>       <C>       <C>
INTEREST INCOME:
   Interest and fees on loans:
     Taxable ...........................................   $ 4,925   $ 5,462   $14,752   $16,748
     Nontaxable ........................................        40        23        83        87
   Interest on investment securities available for sale:

     Taxable ...........................................       286       469       901     1,629
     Nontaxable ........................................       200       233       618       715
   Interest on federal funds sold ......................       113       149       390       509
   Dividends on restricted investment securities .......        31        34        88       132
   Other ...............................................        12        25        56        41
                                                           -------------------------------------
   Total interest income ...............................     5,607     6,395    16,888    19,861
                                                           -------------------------------------

INTEREST EXPENSE:
   Interest on deposits ................................     1,471     2,380     4,510     7,887
   Interest on notes payable ...........................        62       103       245       330
   Interest on other borrowed funds ....................     1,018     1,088     3,138     3,291
   Interest on company obligated mandatorily
     redeemable preferred securities of subsidiary trust       106       106       313       208
                                                           -------------------------------------
   Total interest expense ..............................     2,657     3,677     8,206    11,716
                                                           -------------------------------------

   Net interest income .................................     2,950     2,718     8,682     8,145
Provision for loan losses ..............................        95       130       330       308
                                                           -------------------------------------
   Net interest income after provision for
     loan losses .......................................     2,855     2,588     8,352     7,837
                                                           ------------------------------------
Other income:
   Trust department ....................................        92        93       299       279
   Service fees ........................................       406       342     1,112       995
   Investment securities gains, net ....................         4       186        84       285
   Other ...............................................       137       118       464       491
                                                           -------------------------------------
     Total other income ................................       639       739     1,959     2,050
                                                           -------------------------------------
Operating expenses:
   Salaries and employee benefits ......................     1,230     1,232     3,648     3,615
   Occupancy expenses, net .............................       160       168       497       547
   Equipment expenses ..................................       157       158       520       456
   Office supplies, printing, and postage ..............        77        70       268       278
   Computer processing .................................        99        94       365       316
   Advertising and business promotion ..................        40        54       121       132
   Other operating expenses ............................       297       262       971       819
                                                           -------------------------------------
    Total operating expenses ...........................     2,060     2,038     6,390     6,163
                                                           -------------------------------------

   Income before income taxes ..........................   $ 1,434   $ 1,289   $ 3,921   $ 3,724
Applicable income taxes ................................       449       389     1,212     1,145
                                                           -------------------------------------

Net income .............................................   $   985   $   900   $ 2,709   $ 2,579
                                                           ====================================


Net income per common share, basic and diluted .........   $  0.69   $  0.61   $  1.88   $  1.74
                                                           =====================================


Dividends declared per common share ....................   $  0.23   $  0.22   $  0.68   $  0.66
                                                           =====================================


Comprehensive income ...................................   $ 1,257   $ 1,135   $ 3,122   $ 3,470
                                                           =====================================
</TABLE>

See Notes to Consolidated Condensed Financial Statements.

                                       4
<PAGE>

                  IOWA FIRST BANCSHARES CORP. AND SUBSIDIARIES
                 CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
              For The Nine Months Ended September 30, 2002 and 2001
                                 (In Thousands)
                                  (Unaudited)

<TABLE>

                                                                                     2002        2001
                                                                                   --------------------
<S>                                                                                <C>         <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income .....................................................................   $  2,709    $  2,579
Adjustments to reconcile net income to net cash provided by operating
  activities:
   Proceeds from real estate loans sold ........................................      6,816       4,850
   Real estate loans underwritten and sold .....................................     (6,731)     (4,813)
   Gains on real estate loans sold .............................................        (85)        (37)
   Provision for loan losses ...................................................        330         308
   Investment securities gains, net ............................................        (84)       (285)
   Depreciation ................................................................        424         475
   Amortization of premiums and accretion of discounts
     on investment securities available for sale, net ..........................         30         (19)
   Net increase in other assets ................................................       (212)       (336)
   Net increase in other liabilities ...........................................         29         242
                                                                                   --------------------
Net cash provided by operating activities ......................................   $  3,226    $  2,964
                                                                                   --------------------
CASH FLOWS FROM INVESTING ACTIVITIES
   Net (increase) in interest-bearing deposits at financial institutions .......   $   (180)   $ (1,398)
   Net (increase) decrease in federal funds sold ...............................      1,227     (14,410)
   Proceeds from sales, maturities, calls and paydowns of available
   for sale securities .........................................................     14,786      20,556
   Purchases of available for sale securities ..................................     (8,706)     (5,063)
   Net (increase) in loans .....................................................     (8,015)     (6,376)
   Purchases of bank premises and equipment ....................................       (559)       (549)
   Purchases of life insurance contracts .......................................       (405)         --
   Increase in cash value of life insurance contracts ..........................       (138)       (132)
   (Purchases) sales of restricted investment securities .......................        (89)          6
                                                                                   --------------------
   Net cash (used in) investing activities .....................................   $ (2,079)   $ (7,366)
                                                                                   --------------------

CASH FLOWS FROM FINANCING ACTIVITIES
   Net increase (decrease) in noninterest bearing deposits .....................   $  2,170    $ (8,683)
   Net increase in interest bearing deposits ...................................      6,333       9,773
   Net increase in securities sold under
     agreements to repurchase ..................................................        792         211
   Repayment of notes payable ..................................................     (2,119)       (686)
   Net decrease in line of credit ..............................................         --        (125)
   Net increase in treasury tax and loan open note .............................        219       1,051
   Advances from Federal Home Loan Bank ........................................      7,100      13,400
   Payments of advances from Federal Home Loan Bank ............................    (10,684)    (17,081)
   Net proceeds from issuance of company obligated mandatorily
     redeemable preferred securities of subsidiary trust .......................         --       3,832
   Cash dividends paid .........................................................       (989)       (987)
   Purchases of common stock for the treasury ..................................       (520)     (1,042)
   Proceeds from issuance of common stock ......................................        105          --
                                                                                   --------------------
   Net cash provided by (used in) financing activities .........................   $  2,407    $   (337)
                                                                                   --------------------
   Net increase (decrease) in cash and due from banks ..........................      3,554      (4,739)

Cash and due from banks:
   Beginning ...................................................................   $ 14,661    $ 15,994
                                                                                   --------------------
   Ending ......................................................................   $ 18,215    $ 11,255
                                                                                   ====================

Supplemental Disclosures of Cash Flow Information, cash payments for:
      Interest .................................................................   $  8,250    $ 11,832
      Income taxes .............................................................      1,228       1,193
Supplemental Schedule of Noncash Investing and Financing  Activities,  change in
  accumulated other comprehensive income, unrealized
  gains on investment securities available for sale, net .......................        413         891
</TABLE>

See Notes to Consolidated Condensed Financial Statements .......................

                                       5
<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, money market and time 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.  Some of these other services include
sweep  accounts,  lock-box  deposits,  debit  cards,  credit-related  insurance,
internet  banking,  automated teller machines,  telephone  banking and brokerage
services  through  a  third-party   arrangement.   The  Company  also  owns  the
outstanding  stock of Iowa First Capital Trust I, which was capitalized in March
2001  for the  purpose  of  issuing  Company  Obligated  Mandatorily  Redeemable
Preferred Securities.

Basis of Presentation:

The  consolidated  financial  statements of the Company and its subsidiaries are
unaudited  and should be read in  conjunction  with the  consolidated  financial
statements  contained in the 2001 Annual Report on Form 10-K.  The  consolidated
financial statements have been prepared in accordance with accounting principles
generally  accepted in the United  States of America and conform to  predominant
practices  within the  banking  industry.  Management  of the Company has made a
number of  estimates  and  assumptions  relating to the  reporting of assets and
liabilities  and the disclosure of contingent  assets and liabilities to prepare
the  consolidated  financial  statements.  In the  opinion  of  management,  all
adjustments  and  normal  recurring  accruals  considered  necessary  for a fair
presentation  of the results of  operations  for the interim  periods  presented
herein have been included. Operating results for the three and nine months ended
September  30, 2002 are not  necessarily  indicative  of the results that may be
expected for the year ending December 31, 2002.

Reclassifications:

Certain amounts in the prior year financial  statements have been  reclassified,
with no effect on net income or  stockholders'  equity,  to conform with current
year presentations.

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 and nine  months of 2002 and
2001,  respectively,  were 1,436,055 and 1,444,443, and 1,474,111 and 1,485,882,
respectively. There were no common stock equivalents in 2002 or 2001.


                                       6
<PAGE>

                  IOWA FIRST BANCSHARES CORP. AND SUBSIDIARIES
                    MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS


Critical Accounting Policy:

The Company's  financial  statements are prepared in accordance  with accounting
principles  generally  accepted in the United  States of America.  The financial
information  contained  within these  statements  is, to a  significant  extent,
financial  information  that is based on  approximate  measures of the financial
effects of  transactions  and events that have  already  occurred.  Based on its
consideration  of  accounting   policies  that  involve  the  most  complex  and
subjective  decisions  and  assessments,  management  has  identified  its  most
critical  accounting policy to be that related to the allowance for loan losses.
The Company's allowance for loan loss methodology incorporates a variety of risk
considerations,  both  quantitative and qualitative in establishing an allowance
for loan loss that  management  believes is appropriate at each reporting  date.
Quantitative   factors  include  the  Company's   historical  loss   experience,
delinquency and charge-off trends,  collateral values,  changes in nonperforming
loans,  and  other  factors.   Quantitative   factors  also  incorporate   known
information about individual loans, including borrowers' sensitivity to interest
rate movements.  Qualitative factors include the general economic environment in
the Company's markets,  including economic conditions throughout the Midwest and
in  particular,  the  state  of  certain  industries.  Size  and  complexity  of
individual  credits in relation to loan  structure,  existing  loan policies and
pace of portfolio  growth are other  qualitative  factors that are considered in
the methodology. As the Company adds new products and increass the complexity of
its loan portfolio, it will enhance its methodology accordingly,  Management may
report a materially  different  amount for the  provision for loan losses in the
statement  of  operations  to  change  the  allowance  for  loan  losses  if its
assessment of the above factors were  different.  This  discussion  and analysis
should be read in conjunction  with the Company's  financial  statements and the
accompanying  notes presented  elsewhere  herein, as well as the portion of this
Management's  Discussion  and Analysis  included in the "Results of  Operations"
section relative to the provision for loan losses.  Although management believes
the levels of the  allowance as of September 30, 2002 and December 31, 2001 were
adequate to absorb  losses  inherent in the loan  portfolio,  a decline in local
economic  conditions,  or other factors,  could result in increasing losses that
cannot be reasonably predicted at this time.

Results of Operations:

The Company  recorded net income of $985,000 for the quarter ended September 30,
2002,  compared with net income of $900,000 for the quarter ended  September 30,
2001,  an increase of $85,000 or 9.4%.  The increase in net income was primarily
due to improved net interest income which was $232,000 or 8.5% greater the third
quarter  of 2002  compared  to the third  quarter  of 2001.  Basic  and  diluted
earnings  per share were $.69  during the third  quarter of 2002 versus $.61 for
the same quarter in 2001, an increase of $.08 or 13.1%.  The Company's return on
average assets for the quarter ended  September 30, 2002 was 1.04% compared with
a return of .95% for the quarter ended September 30, 2001. The Company's  return
on average equity was 15.62% and 15.50% for the three months ended September 30,
2002 and September 30, 2001, respectively.

Consolidated  net income was $2,709,000 for the first nine months of 2002.  This
was $130,000 or 5.0% more than for the comparable period last year. However, net
income per basic and  diluted  share for the first nine months of 2002 was $1.88
which was $.14 or 8.0% greater than the comparable period of the prior year. Net
interest  income  increased  the first nine months of 2002 compared to the first
nine  months of 2001 by $537,000  (6.6%),  provision  for loan losses  increased
$22,000 (7.1%),  securities  gains decreased by $201,000  (70.5%),  other income
increased by $110,000 (6.2%),  operating expenses increased $227,000 (3.7%), and
income tax expense  increased  $67,000 (5.9%).  The Company's  return on average
assets for the nine months ended  September  30, 2002 was .96%  compared  with a
return of .92% for the nine months  ended  September  30,  2001.  The  Company's
return on average equity was 15.2% and 15.3% for the nine months ended September
30, 2002 and September 30, 2001, respectively.

                                       7
<PAGE>

The distribution of average assets,  liabilities and  stockholders's  equity and
interest rates, as well as interest  differential was as follows (dollar amounts
in  thousands  and income and rates on a fully  taxable  equivalent  basis using
statutory tax rates in effect for the year presented):
<TABLE>
                            Three Months Ended          Three Months Ended         Nine Months Ended          Nine Months Ended
                            September 30, 2002          September 30, 2001         September 30, 2002         September 30, 2001
                        --------------------------  -------------------------  -------------------------   -------------------------
                                           Average                    Average                    Average                     Average
                        Balance   Interest   Rate   Balance   Interest  Rate   Balance   Interest  Rate    Balance  Interest   Rate
                        --------------------------  -------------------------  -------------------------  --------------------------
<S>                     <C>       <C>      <C>      <C>       <C>     <C>      <C>       <C>     <C>      <C>       <C>      <C>
Assets
  Taxable loans, net .  $275,265  $  4,925   7.16%  $275,446  $  5,462  7.93%  $274,173   $14,752  7.17%   $274,649  $16,748   8.13%
  Taxable investment
    securities
    available
    for sale .........    21,739    286.00   5.26%    29,702       469  6.32%    21,765    901.00  5.52%     34,273    1,629   6.34%
  Nontaxable investment
    securities and
    loans ...........     20,027       364   7.26%    21,655       388  7.16%    19,597     1,062  7.23%     22,414    1,215   7.23%
  Federal funds sold      27,505    113.00   1.64%    17,334       149  3.44%    32,107    390.00  1.62%     15,970      509   4.25%
  Restricted invest-
    ment securities .      3,931     31.00   3.15%     4,235        34  3.21%     3,897     88.00  3.01%      3,937      132   4.47%
  Interest-bearing
    deposits at
    financial
    institutions ....      1,530     12.00   3.14%     2,522        25  3.96%     1,922     56.00  3.88%      1,354       41   4.04%
                        ------------------          ------------------          -----------------          -----------------
     Total interest-
     earning assets .    349,997     5,731   6.55%   350,894     6,527  7.44%   353,461    17,249  6.51%    352,597   20,274   7.67%
                                   -------                    --------                   --------                    -------
     Cash and due
        from banks ..     13,076                      12,376                     12,759                      12,008
     Bank premises
        and equipment      5,158                       5,048                      5,033                       5,022
     Life insurance
        contracts ...      3,884                       3,299                      3,598                       3,252
     Other assets ..      4,076                       3,548                      3,915                       3,845
                        --------                    --------                   --------                    --------
           Total ....   $376,190                    $375,165                   $378,767                    $376,724
                        ========                    ========                   ========                    ========
Liabilities
  Deposits:
    Interest-bearing
      demand .........  $110,053  $  355     1.29%  $ 97,700   $   498  1.99%   $113,491  $ 1,160   1.37%  $ 97,352  $ 1,962   2.69%
    Time .............   115,830   1,116     3.85%   130,166     1,883  5.79%    114,546    3,350   3.91%   134,082    5,925   5.91%
  Notes payable ......     3,300      62     7.37%     5,590       103  7.37%      4,435      245   7.37%     5,985      330   7.37%
  Other borrowings ...    72,884   1,018     5.59%    71,100     1,088  6.12%     74,241    3,138   5.65%    70,858    3,291   6.21%
  Company obligated
    mandatorily
    redeemable
    preferred
    securities .......     4,000     106    10.37%     4,000       106 10.37%      4,000      313  10.32%     2,657      208  10.32%
                        ----------------            ------------------          -----------------          -----------------
     Total interest-
     bearing
     liabilities .....   306,067   2,657    #DIV/0!  308,557     3,678  4.77%    310,713    8,206  #DIV/0!   310,935  11,716   5.04%
                                            -------                     -----                      ------                     ------
   Noninterest-
     bearing deposits     41,127                      38,935                      40,350                      39,110
   Other liabilities .     1,728                       2,519                       1,634                       1,987
                        --------                    --------                    --------                    --------
      Total liabilities  348,922                     350,011                     352,697                     352,031
   Redeemable common
     stock held by KSOP    2,242                       2,118                       2,242                       2,118
Stockholders' Equity ..   25,026                      23,036                      23,828                      22,575
                        --------                   --------                    --------                    --------
           Total ...... $376,190                    $375,165                    $378,767                    $376,724
                        ========                    ========                    ========                    ========
      Net interest
      earnings ........ $  3,074                    $  2,849                    $  9,043                    $ 8,558
                        ========                    ========                    ========                    =======
       Net Annualized
       Yield (net
       interest
       earnings
       divided by
       total interest-
       earning
       assets) .........                    3.51%                      3.25%                       3.41%                      3.24%
                                          =======                    =======                     =======                    =======

Nonaccruing  loans  are  included  in the  average  balance.  Loan  fees are not
material.
</TABLE>

                                       8
<PAGE>

The net interest  margin  increased  to 3.51%  during the third  quarter of 2002
compared  to 3.25%  during  the third  quarter  of 2001.  The  return on average
interest-earning  assets  decreased 89 basis points (from 7.44% in 2001 to 6.55%
in 2002) and interest paid on average interest-bearing liabilities decreased 130
basis points (from 4.77% in 2001 to 3.47% in 2002).

The net interest margin  increased to 3.41% during the first nine months of 2002
compared to 3.24%  during the same period in 2001.  Over the same time  periods,
the return on average  interest-earning  assets decreased 116 basis points (from
7.67% in 2001 to 6.51% in 2002) and  interest  paid on average  interest-bearing
liabilities decreased 151 basis points (from 5.04% in 2001 to 3.53% in 2002).

The  Federal  Reserve  Bank  Board and  Chairman  Greenspan  reduced  short-term
interest  rates an amazing  eleven times during 2001.  The prime  lending  rate,
which  began the year  2001 at 9.50%,  ended  2001 at only  4.75%;  where it has
remained  for the first nine months of 2002.  During this period of low interest
rates,  increased emphasis has been given to incorporating  interest rate floors
on selected  commercial and agricultural loans. During the third quarter of 2002
most,  if not all, of such loans  subject to interest  rate floors were actually
paying the floor rate. This resulted in the rates received on loans falling less
than the rates paid on  interest-bearing  liabilities.  Eventually,  when market
interest rates again rise, rates paid on interest-bearing liabilities may, for a
time,  increase more than rates received on loans.  This outcome is possible due
to the loans which are subject to floor rate  pricing  lagging  market  interest
rate increases  until such time as the floor rate has been exceeded.  The extent
of this impact will depend on the amount and timing of eventual  market interest
rate hikes.

Rates received on investment  securities  available for sale have decreased less
than the rates paid on interest-bearing  liabilities.  This was due largely to a
longer average  duration for investment  securities  available for sale than the
average  duration  for  interest-bearing  liabilities.  Most  of the  investment
securities  available for sale were  purchased  when market  interest rates were
higher than rates currently available. In the current interest rate environment,
when such investment  securities  mature or are sold,  called, or otherwise paid
down, the  reinvestment  rate available is nearly always lower than the yield of
the liquidating security.

The  usage of  wholesale  funding  sources  (primarily  Federal  Home  Loan Bank
advances), while mitigating intermediate and long-term interest rate risk, tends
to increase  overall interest  expense.  The Company reduced its reliance during
the first  nine  months of 2002 on such  Federal  Home Loan Bank  advances  as a
funding source. Total payments on advances of $10,684,000 exceeded $7,100,000 of
new advances  resulting in a net reduction of $3,584,000.  The interest  expense
related to the Company Obligated Mandatorily Redeemable Preferred Securities was
incurred  for the entire  first nine months of 2002,  compared  to such  expense
incurred  for only  slightly  more than 180 days during the first nine months of
2001. Intense competition for all types of loans and deposits tends to limit the
Company's  ability  to  control  pricing  and  other  terms  when  dealing  with
customers.

Provisions for loan losses were $95,000 for the three months ended September 30,
2002.  This was  $35,000  less than the third  quarter  of 2001.  The first nine
months of 2002 provisions for loan losses totaled  $330,000 or $22,000 more than
the same period  last year.  Net loan  charge-offs  through  September  30, 2002
totaled  $164,000  compared to net  charge-offs  of $381,000  for the first nine
months of 2001.  Despite less net  charge-offs  through the first nine months of
2002 versus the first nine  months of 2001,  loan  quality  has been  negatively
impacted by a variety of factors  including,  but not necessarily  limited to, a
generally sluggish economy. The allowance for possible loan losses is maintained
at the level  considered  adequate  by  management  of the Banks to provide  for
probable  losses in the existing loan  portfolio.  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
evaluations of the loan  portfolio and related  off-balance  sheet  commitments,
consider  current  economic  conditions,  the composition of the loan portfolio,
historical loan loss experience, review of specific problem loans, the estimated
net realizable value or the fair value of the underlying  collateral,  and other
factors.

                                       9
<PAGE>

Nonaccrual  loans  totaled  $1,866,000  at September  30,  2002,  an increase of
$1,060,000  or 132% from  September  30, 2001.  Other real estate owned  totaled
$526,000,  an increase  of  $305,000 or 138% from a year ago.  Loans past due 90
days or more and still accruing  totaled $240,000 which was $621,000 or 72% less
than a year  earlier.  The  allowance  for  possible  loan losses of  $3,348,000
represents  1.2% of net loans and 127% of total  nonaccrual  loans,  other  real
estate owned, and loans past due 90 days or more and still accruing.

Other income results from the charges and fees collected by the Company from its
customers  for  various  services  performed,  gross trust  department  revenue,
miscellaneous  other  income and gains (or losses)  from the sale of  investment
securities in the available for sale category.  Total other income for the third
quarter of 2002, without gains on investment securities,  was $635,000;  $82,000
or 14.8% more than the third quarter of 2001. Investment securities gains during
the three months ended September 30, 2002 of $4,000 compare to gains of $186,000
for the three months ended September 30, 2001.

For the first three quarters of 2002 other income, without investment securities
gains, totaled 1,875,000 which was $110,000 or 6.2% greater than the same period
last year.  Service fee income and trust department  income were higher than the
prior  year  while  gains  on  investment  securities  available  for  sale  and
miscellaneous other income were less than last year. Investment securities gains
during the nine months ended  September 30, 2002 of $84,000  compare to gains of
$285,000 for the nine months ended September 30, 2001.

Operating  expenses include all the costs incurred to operate the Company except
for interest expense,  the loan loss provision and income taxes. For the quarter
ended  September  30, 2002,  salaries and employee  benefits  expense  decreased
$2,000 or 0.2% as turnover  resulted  in some cost  containment,  occupancy  and
equipment  expenses  decreased  $9,000  or 2.8%,  office  supplies  and  related
expenses increased $7,000 or 10%, computer  processing  increased $5,000 or 5.3%
as additional costs associated with digital document imaging as well as disaster
recovery contracts were recognized.  Finally, other operating expenses increased
$35,000  or  13.4%  largely  due to  the  impact  of  payments  for  consulting,
recruiting  and  Federal  Reserve  Bank  processing.  Total  operating  expenses
increased  $22,000  or 1.1%  during the third  quarter  of 2002  versus the same
quarter last year.

For the nine months ended  September 30, 2002,  salaries and employees  benefits
increased  $33,000 or 0.9% due to normal  salary  adjustments  and higher health
care costs mitigated somewhat by employee turnover,  occupancy expense decreased
$50,000 or 9.1% due mainly to lower  utility costs and  depreciation,  equipment
expense  increased  $64,000 or 14.0% as costs  associated with new computers and
item  processing  equipment were incurred,  computer  processing rose $49,000 or
15.5% as additional  costs  associated with digital  document imaging as well as
disaster  recovery  contracts  were  recognized,  and other  operating  expenses
increased $152,000 or 18.6% largely due to the impact of payments for consulting
and recruiting,  Federal Reserve Bank processing, and insurance as well as costs
incurred carrying and disposing of other real estate.  Total operating  expenses
increased  by  $227,000  or 3.7% for the nine months  ended  September  30, 2002
compared to the same period last year.

Income  tax  expense  for the  quarter  ended  September  30,  2002 of  $449,000
represented  31.3% of income before taxes, the comparable  quarter last year was
30.2% of income  before tax.  Year-to-date  2002 tax expense was 30.9% of income
before tax.

The efficiency ratio,  defined as noninterest  expense,  excluding the provision
for loan losses,  as a percent of net interest income plus  noninterest  income,
was 57.4% and 60.1% for the three and nine  months  ended  September  30,  2002,
respectively. The efficiency ratio for all of 2001 was 62.2%. The primary reason
for this improvement in 2002 is the increase in net interest income.

Discussion and Analysis of Financial Condition

The Company's total assets at September 30, 2002, were $386,301,000, an increase
of $5,704,000  or 1.5% from  December 31, 2001.  As of September  30, 2002,  the
Company  had  $29,773,000  of federal  funds sold  compared  to  $31,000,000  at
December 31, 2001.  Federal  funds sold and other liquid assets have been higher
the past few quarters than the Company would historically  consider normal. This
is due to the low interest rate environment  coupled with managements'  strategy
to  maintain  liquidity  for future  loan  growth and  purchases  of  investment
securities available for sale when interest rates again rise.

                                       10
<PAGE>

Total  available for sale  securities  decreased  $5,367,000 or 12.1% during the
first nine months of 2002 to total  $39,099,000 at September 30, 2002. The Banks
emphasize  purchase of securities with maturities of five years and less as such
purchases  typically offer reasonable yields with limited credit risk as well as
limited  interest  rate risk.  Additionally,  selected  securities  with  longer
maturities  are  owned in order  to  enhance  overall  portfolio  yield  without
significantly  increasing risk. In the low interest rate environment experienced
during the first nine months of 2002, the banks purchased fewer  securities than
the  total  of  securities  that  were  sold,  matured,  called,  or paid  down.
Furthermore,  most of the securities  that were  purchased had relatively  short
maturities or likely early call dates.  Securities  sold during the current year
of $4,013,000 have resulted in net gains recognized totaling $84,000.

Net loans totaled  $280,380,000 at September 30, 2002, an increase of $7,685,000
or 2.8% from  December 31, 2001.  Competition  for  high-quality  loans  remains
intense,  particularly  in the small consumer and  residential  real estate loan
categories.

Total  deposits  at  September  30,  2002,  were  $276,027,000,  an  increase of
$8,503,000  or 3.2% from the  balance at  December  31,  2001.  Certificates  of
deposit remain the largest single  category of deposits  representing on average
for the three  months  ended  September  30,  2002,  approximately  43% of total
deposits.  Securities sold under agreements to repurchase  increased $792,000 to
$5,860,000  and  advances  borrowed  from the Federal  Home Loan Bank  decreased
$3,584,000 to total $67,122,000 at quarter end.

Notes payable totaled  $3,300,000 at September 30, 2002, or $2,119,000 less than
at December 31, 2001. This decrease resulted from regularly  scheduled principal
payments as well as a $1,522,000 payoff of one of the Company's loans at balloon
date.

On March 28,  2001,  the Company  issued  4,000 shares  totaling  $4,000,000  of
Company  Obligated  Mandatorily  Redeemable  Preferred  Securities of Iowa First
Capital  Trust I. The  securities  provide  for  cumulative  cash  distributions
calculated at a 10.18% annual rate. The Company may, at one or more times, defer
interest payments on the capital securities for up to 10 consecutive semi-annual
periods,  but not beyond June 8, 2036.  At the end of the deferral  period,  all
accumulated and unpaid  distributions  will be paid. The capital securities will
be redeemed on June 8, 2031; however,  the Company has the option to shorten the
maturity  date to a date not earlier  than June 8, 2011.  The  redemption  price
begins at 105.09% to par and is reduced 51 basis  points each year until June 8,
2021 when the capital  securities can be redeemed at par. Holders of the capital
securities have no voting rights, are unsecured,  and rank junior in priority of
payment to all of the Company's indebtedness and senior to the Company's capital
stock. For regulatory  purposes,  the entire amount of the capital securities is
allowed  in the  calculation  of Tier 1  capital.  The  capital  securities  are
included  in the  balance  sheet as a  liability  with  the  cash  distributions
included in interest expense.

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 September  30, 2002,  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.

                                       11
<PAGE>

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, interest-bearing deposits at financial institutions,  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  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
September 30, 2002, were $276,027,000 or 71.5% of total liabilities and equity.

Federal funds sold overnight totaled  $29,773,000 or 7.7% of September 30, 2002,
total  assets.  These  federal  funds  sold may be used to fund loans as well as
deposit withdrawals, or for other purposes as defined by management.

Securities  available for sale with a cost totaling  $37,073,000  at quarter-end
included net  unrealized  gains of $2,026,000.  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  $1,349,000  (5.9%) during the nine months ended
September 30, 2002. This increase  occurred despite purchases of treasury shares
totaling $520,000 over the same period.

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  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  September  30,  2002  with the
requirements to be considered  adequately  capitalized  and well  capitalized is
presented below.

<TABLE>

                                                                          To Be Well Capitalized

                                                        For Capital      Under Prompt Corrective
                                             Actual   Adequacy Purposes     Action Provisions
------------------------------------------------------------------------------------------------
<S>                                          <C>      <C>                <C>
Total capital to risk-weighted assets ...    12.06%         8.00%               10.00%
Tier 1 capital to risk-weighted assets ..    10.82%         4.00%                6.00%
Tier 1 capital to average assets ........     7.79%         4.00%                5.00%
</TABLE>

                                       12
<PAGE>

Impact of Inflation and Changing Prices

The financial statements and related data presented herein have been prepared in
accordance with accounting principles generally accepted in the United States of
America,  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.

The Company plans to enhance its market  presence in Muscatine,  Iowa with a new
branch.  This branch will be located on a major  thoroughfare  and retail  area,
Highway 61, on the  northeast  side of  Muscatine.  The branch will offer a wide
variety of banking  services in its 3,000  square feet of space.  In addition to
consumer and real estate  lending  services,  a  traditional  inside four person
teller  line  and four  drive-up  teller  lanes,  the  branch  will  also  offer
freestanding  twenty-four  hour ATM  services.  The total  cost of this  branch,
including  site work and  equipment,  is currently  projected  at  approximately
$1,500,000 ($380,000 of which was the land cost). Construction of this branch is
anticipated to be completed in late spring or early summer 2003.

The new  branch  discussed  above will serve as a  replacement  for the  current
rented  branch  facilities  at  the  Muscatine  Mall,  approximately  two  miles
northeast of the main downtown  bank  building.  In recent years,  the Muscatine
Mall has lost numerous tenants  resulting in lower customer traffic counts.  The
current space  allocated by the landlord to our bank has been deemed  inadequate
by the Company to properly serve the long-term needs of our customers. This lack
of  activity  and  adequate  space  at the  Muscatine  Mall was  exacerbated  by
difficulty in renegotiating a reasonable long-term lease with the landlord which
recognized the current state of affairs.  Thus, the Company decided to build its
own branch in the strong and growing  retail  section of town  described  in the
previous paragraph.

Additionally,  plans are in process to  modernize  and  enhance the image of the
organization  with a  substantial  remodeling  of the main floor of the downtown
Muscatine primary bank building.  This building was originally completed in 1979
and the main  floor  has not since  been  extensively  renovated.  Approximately
10,000  square  feet of the  total  36,000  square  feet of  this  building  are
scheduled  to be  remodeled.  The  total  cost for  this  project  is  currently
projected  at  approximately  $500,000  and is scheduled to be completed in late
winter or early spring 2003.

The Company has in the past purchased shares of its outstanding common stock for
the treasury as they become  available.  During the second  quarter of 2002, the
Board of Directors  rescinded the prior stock repurchase plan and approved a new
stock repurchase plan authorizing up to 75,000 shares of its outstanding  common
stock to be purchased for the treasury. During the first three quarters of 2002,
22,788  shares or 1.6% of the total shares  outstanding  as of December 31, 2001
were purchased for the treasury.

                                       13
<PAGE>

Current Accounting Developments

In July 2001, the Financial  Accounting  Standards  Board issued  Statement 141,
"Business  Combinations"  and  Statement  142,  "Goodwill  and Other  Intangible
Assets". Statement 141 eliminates the pooling method for accounting for business
combinations;  requires  that  intangible  assets that meet certain  criteria be
reported separately from goodwill; and requires negative goodwill arising from a
business  combination  to be recorded as an  extraordinary  gain.  Statement 142
eliminates  the  amortization  of  goodwill  and  other   intangibles  that  are
determined  to have an  indefinite  life;  and  requires,  at a minimum,  annual
impairment tests for goodwill and other intangible assets that are determined to
have an indefinite life. For the Company,  the provisions of the Statements were
generally  effective  January 1, 2002.  Implementation  of the Statements had no
impact on the financial  statements,  except that annual  goodwill  amortization
expense of $56,000  will no longer be  recorded.  For the three and nine  months
ended  September  30,  2001  goodwill  amortization  of $14,000  and $42,000 was
recorded,  respectively.  This goodwill  amortization resulted in a reduction of
earnings  per share for the three and nine months  ended  September  30, 2001 of
$.01 and $.03, respectively.

"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT

With the exception of the historical  information  contained in this report, the
matters described herein contain certain forward-looking statements with respect
to the Company's financial condition,  results of operations and business. These
forward-looking  statements are subject to certain risks and uncertainties,  not
all of which can be  predicted  or  anticipated.  Factors  that may cause actual
results to differ  materially  from those  contemplated  by the  forward-looking
statements herein include market conditions as well as conditions  affecting the
banking industry  generally and factors having a specific impact on the Company,
including but limited to fluctuations in interest rates and in the economy;  the
impact of laws and  regulations  applicable to the Company and changes  therein;
the impact of  accounting  pronouncements  applicable to the Company and changes
therein;  competitive  conditions in the markets in which the Company  operates,
including  competition from banking and non-banking companies with substantially
greater resources;  the Company's ability to control the composition of its loan
portfolio without adversely affecting interest income; the Company's  dependence
on third party  suppliers;  and the  Company's  ability to respond to changes in
technology.  Readers of this Form 10-Q should therefore not place undue reliance
on forward-looking statements.

Item 4.  Controls and Procedures

During the 90-day  period prior to the filing date of this  report,  management,
including the Company's  Executive Vice  President,  Chief  Operating  Officer &
Treasurer  and Vice  Chairman of the Board,  President  and CEO,  evaluated  the
effectiveness of the design and operation of the Company's  disclosure  controls
and procedures.  Based upon, and as of the date of that  evaluation,  management
concluded that the disclosure  controls and procedures  were  effective,  in all
material  respects,  to ensure that information  required to be disclosed in the
reports  the Company  files and  submits  under the  Exchange  Act is  recorded,
processed, summarized and reported as and when required.

There have been no significant  changes in the Company's internal controls or in
other factors which could  significantly  affect internal controls subsequent to
the date the  Company  carried  out its  evaluation.  There were no  significant
deficiencies or material weaknesses  identified in the evaluation and therefore,
no corrective actions were taken.

                                       14
<PAGE>

                  IOWA FIRST BANCSHARES CORP. AND SUBSIDIARIES
                                OTHER INFORMATION

ITEM 6.  Exhibits and reports on Form 8-K.

         (a)  Exhibits

              Exhibit 99.1 - Certification pursuant to Section 906 of the
                             Sarbanes-Oxley Act of 2002

              Exhibit 99.2 - Certification pursuant to Section 906 of the
                             Sarbanes-Oxley Act of 2002

         (b)  Reports on Form 8-K.

              No Form 8-K has been filed for the  quarter  ended  September  30,
              2002.


                                       15
<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)

November 13, 2002             /s/ D. Scott Ingstad
-----------------             -------------------------------
Date                         D. Scott Ingstad, Vice Chairman
                             Of the Board, President and CEO


November 13, 2002            /s/ Kim K. Bartling
-----------------            -------------------------------
Date                         Kim K. Bartling, Executive Vice
                             President, Chief Operating
                             Officer & Treasurer


                                       16
<PAGE>


                            Section 302 Certification

I, Kim K. Bartling, certify that:

1.   I have reviewed this quarterly report on Form 10-Q of Iowa First Bancshares
     Corp.

2.   Based on my knowledge,  this  quarterly  report does not contain any untrue
     statement of a material fact or omit to state a material fact  necessary to
     make the statements  made, in light of the  circumstances  under which such
     statements  were made, not misleading with respect to the period covered by
     this quarterly report;

3.   Based on my  knowledge,  the  financial  statements,  and  other  financial
     information  included  in this  quarterly  report,  fairly  present  in all
     material respects the financial  condition,  results of operations and cash
     flows of the  registrant  as of, and for,  the  periods  presented  in this
     quarterly report;

4.   The  registrant's  other  certifying  officer   and I are  responsible  for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

     a.   designed  such  disclosure  controls  and  procedures  to ensure  that
          material  information  relating  to  the  registrant,   including  its
          consolidated subsidiaries,  is made known to us by others within those
          entities,  particularly  during  the  period in which  this  quarterly
          report is being prepared;

     b.   evaluated the  effectiveness of the registrant's  disclosure  controls
          and procedures as of a date within 90 days prior to the filing date of
          this quarterly report (the "Evaluation Date"); and

     c.   presented  in  this  quarterly   report  our  conclusions   about  the
          effectiveness  of the disclosure  controls and procedures based on our
          evaluation as of the Evaluation Date;

5.   The registrant's other certifying  officer  and I have disclosed,  based on
     our most recent  evaluation,  to the  registrant's  auditors  and the audit
     committee of  registrant's  board of directors (or persons  performing  the
     equivalent function):

     a.   all  significant  deficiencies  in the design or operation of internal
          controls  which could  adversely  affect the  registrant's  ability to
          record,  process,   summarize  and  report  financial  data  and  have
          identified for the  registrant's  auditors any material  weaknesses in
          internal controls; and

     b.   any fraud, whether or not material,  that involves management or other
          employees who have a  significant  role in the  registrant's  internal
          controls; and

6.   The  registrant's  other  certifying  officer  and I have indicated in this
     quarterly report whether or not there were significant  changes in internal
     controls  or in other  factors  that could  significantly  affect  internal
     controls  subsequent to the date of our most recent  evaluation,  including
     any corrective actions with regard to significant deficiencies and material
     weaknesses.

Date:  November 13, 2002           Signature: /s/ Kim K. Bartling
                                   ---------------------------------------------
                                   Kim K. Bartling, Executive Vice President,
                                   Chief Operating Officer & Treasurer


                                       17
<PAGE>

                            Section 302 Certification

I, D. Scott Ingstad, certify that:

1.   I have reviewed this quarterly report on Form 10-Q of Iowa First Bancshares
     Corp.

2.   Based on my knowledge,  this  quarterly  report does not contain any untrue
     statement of a material fact or omit to state a material fact  necessary to
     make the statements  made, in light of the  circumstances  under which such
     statements  were made, not misleading with respect to the period covered by
     this quarterly report;

3.   Based on my  knowledge,  the  financial  statements,  and  other  financial
     information  included  in this  quarterly  report,  fairly  present  in all
     material respects the financial  condition,  results of operations and cash
     flows of the  registrant  as of, and for,  the  periods  presented  in this
     quarterly report;

4.   The  registrant's  other  certifying  officer   and I are  responsible  for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

     a.   designed  such  disclosure  controls  and  procedures  to ensure  that
          material  information  relating  to  the  registrant,   including  its
          consolidated subsidiaries,  is made known to us by others within those
          entities,  particularly  during  the  period in which  this  quarterly
          report is being prepared;

     b.   evaluated the  effectiveness of the registrant's  disclosure  controls
          and procedures as of a date within 90 days prior to the filing date of
          this quarterly report (the "Evaluation Date"); and

     c.   presented  in  this  quarterly   report  our  conclusions   about  the
          effectiveness  of the disclosure  controls and procedures based on our
          evaluation as of the Evaluation Date;

5.   The registrant's other certifying  officer  and I have disclosed,  based on
     our most recent  evaluation,  to the  registrant's  auditors  and the audit
     committee of  registrant's  board of directors (or persons  performing  the
     equivalent function):

     a.   all  significant  deficiencies  in the design or operation of internal
          controls  which could  adversely  affect the  registrant's  ability to
          record,  process,   summarize  and  report  financial  data  and  have
          identified for the  registrant's  auditors any material  weaknesses in
          internal controls; and

     b.   any fraud, whether or not material,  that involves management or other
          employees who have a  significant  role in the  registrant's  internal
          controls; and

6.   The  registrant's  other  certifying  officer  and I have indicated in this
     quarterly report whether or not there were significant  changes in internal
     controls  or in other  factors  that could  significantly  affect  internal
     controls  subsequent to the date of our most recent  evaluation,  including
     any corrective actions with regard to significant deficiencies and material
     weaknesses.

Date:  November 13, 2002       Signature:  /s/ D. Scott Ingstad
                               -------------------------------------------------
                               D. Scott Ingstad, Vice Chairman of the
                               Board, President, and Chief Executive Officer

                                       18