Iowa-chartered banks provided about $62.6 billion in total loans to Iowa businesses, farmers and consumers as of March 31, up 5.18% from the first quarter of 2018, according to results released by the Federal Deposit Insurance Corp. on Wednesday. 

Loan quality at Iowa banks remains strong, the Iowa Bankers Association said in a news release. Net loan charge-offs were at 0.07%, compared with 0.11% last quarter. At 0.72%, the noncurrent loan percentage of total loans is slightly up from the year-ago percentage of 0.70%.

“With $62.6 billion in loans to consumers and businesses, Iowa banks drive community and economic development in our state,” said John Sorensen, president and CEO of the Iowa Bankers Association. “Of course, financial investment is just part of what’s needed to make our communities succeed, which is why Iowa bankers annually serve in volunteer roles to the tune of more than 300,000 hours.”

Net income for the Iowa banking industry was $265 million for first quarter 2019, and total assets were $88 billion. Return on assets, another indicator of overall bank performance, declined slightly to 1.21%, compared with 1.25% at the end of first quarter a year ago.

Total deposits at Iowa banks were $72.8 billion at the end of first quarter this year, up nearly 3.24% from the year prior. Deposit growth, which provides the funds needed for lending, has not kept pace with the increase in loan demand.

The number of banks across the nation on the FDIC “problem list” declined from 60 to 59 during the first quarter, which is the lowest number of problem banks since first quarter 2007. One new bank opened in the first quarter, and no failures occurred.

The FDIC reported that nationally, quarterly net income for banks improved from a year ago, led by higher interest income; net interest margins widened; asset quality indicators remained stable; and the number of “problem banks” remains low.