Iowa banks reported an increase in loans and deposits in 2024’s third quarter, information released by the Federal Deposit Insurance Corp. shows.

“Although Iowa banks are experiencing modestly increasing loan balances, average net interest margins remain well below pre-pandemic levels,” John Sorensen, CEO and president of the Iowa Bankers Association, said in a prepared statement. “We expect further improvement in these metrics in 2025 as banks adjust to changes in the economy and monetary policy.”

In the third quarter that ended Oct. 31, Iowa’s 236 domiciled banks reported:

• $86.6 billion in loans, an increase of 4.3% from a year ago and a 1% increase from the second quarter when there were $85.8 billion in loans. Average net loan charges for the quarter were 0.09%, a slight increase from the second quarter. The noncurrent percentage of total loans was 0.52%, the same as the first and second quarters.
• $104.1 billion in deposits, a 3.3% increase from a year ago and a 0.6% increase from the second quarter when deposits were $103.5 billion.
• $127.1 billion in assets, a 1.5% increase over the second quarter and a 3.8% increase from the same period in 2023.
• $805 million in net income, a 33% increase over the second quarter’s $603 million in net income. In the third quarter of 2023, net income was $949 million.

Nationally, the number of banks on the FDIC’s “problem bank list” increased to 68, up from 66 in the second quarter. Total assets held by problem banks were $87.3 billion, an increase of $3.9 billion from the second quarter. Only 1.5% of total banks are considered “problem banks,” which is within the normal range, according to the release.

To read the news release from the Iowa Bankers Association, click here.