Iowa banks reported increases in loans and deposits in 2024, signs of the banking industry’s strength and ability to withstand economic uncertainty and interest rate risk, the Iowa Bankers Association said in a news release.

“Iowa banks continued to see growth throughout 2024 despite the uncertainties that still exist in the market,” Adam Gregg, the association’s president and CEO, said in the release. “Iowans continue to benefit from the state’s competitive banking sector, and Iowa banks continue to fuel the state’s economy as a trusted source of financial services for consumers and businesses.”

Information released by the Federal Deposit Insurance Corp. for the fourth quarter and year that ended Dec. 31 showed that Iowa’s 234 domiciled banks had:

• $107 billion in deposits, a 4.4% increase from a year ago and a 1.7% increase from the third quarter.  
• Nearly $88 billion in loans, up 4.1% from a year ago and 1.3% from the third quarter. Average net loan charges for the quarter were 0.09%, the same as in the third quarter. The average loan-to-deposit ratio was 82%. The news release said that the “healthy balance highlights the strength of Iowa’s banking industry.”
• Just over $127 billion in assets, a 3% increase from a year ago.
• $1.1 billion in net income, down slightly from 2023 when net income totaled $1.2 billion. The net interest margin for Iowa banks continued to be below the national number, according to the release. Iowa banks ended 2024 at 2.8%, 38 points below the national net interest margin at year-end, the release said.  

Nationally, the number of banks on the FDIC’s “problem bank list” decreased to 66, down two from the third quarter. In a statement from acting Chairman Travis Hill, the FDIC noted for the first time since 1990, it would no longer disclose the aggregate assets of banks on the problem bank list.

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