Iowa-chartered banks recorded $63.7 billion in active loans on their books as of Sept. 30, up 4.5% from the prior year’s third quarter, according to results released Tuesday by the Federal Deposit Insurance Corp. 

Year-to-date net income for the Iowa banking industry was $883 million as of Sept. 30, compared with $832 million for the year-ago period. 

Total deposits at Iowa banks were $74.2 billion at the end of the third quarter this year, up 6.58% from the year prior.

Loan quality at Iowa banks remained strong in the third quarter. Net loan charge-offs were at 0.10%, compared with 0.09% last quarter. At 0.73%, the noncurrent loan percentage of total loans is up from the year-ago percentage of 0.70%.

“Iowans can be thankful they are served by a diverse banking system dedicated to growing healthy communities,” said John Sorensen, president and CEO of the Iowa Bankers Association. “Iowa’s banks remain key drivers of our economy with nearly $3 billion in new loans generated over the past 12 months alone.”

On Tuesday, the FDIC said the U.S. banking industry reported positive results overall and the annual rate of loan growth for community banks outpaced the overall industry.

Low commodity prices and farm incomes persisted in the third quarter, resulting in modest deterioration in the agriculture sector, according to the FDIC. While the net charge-off rate for agriculture loans remained low, some farm banks are reporting asset quality deterioration in farmland and production loans. 

“The noncurrent rate for agriculture loans at community banks rose by 11 basis points from a year ago to 1.27%, but is below levels reached during previous downturns,” the FDIC report stated.