Iowa banks reported an increase in loans in 2024’s second quarter and loan quality remained strong, information released by the Federal Deposit Insurance Corp. shows.

“Credit quality remains favorable with just a moderate increase in loan delinquencies and charge-offs,” John Sorensen, CEO and president of the Iowa Bankers Association, said in a prepared statement. “This reflects the ability of borrowers to service debt and the overall health of Iowa’s economy.”

In the second quarter that ended June 30, Iowa’s 237 domiciled banks reported:

• $85.8 billion in loans, an increase of 5.3% from a year ago and a 0.8% increase from the first quarter when there were $85.1 billion in loans. Average net loan charges for the quarter were 0.08%, a slight increase from 2024’s first quarter. The noncurrent percentage of total loans was 0.52%, the same as the first quarter.
• $125.2 billion in assets, down slightly from $125.4 billion in the first quarter. Second-quarter assets were 2.5% higher than during the same period in 2023.
• $103.5 billion in deposits, a slight decrease from the first quarter but up 1.6% from a year ago when deposits totaled $101.8 billion.
• $603 million in net income, a 6.2% decrease for 2023’s second quarter.

Nationally, the number of banks on the FDIC’s “problem bank list” increased to 66, up from 63 in the first quarter. Total assets held by problem banks were $83.4 billion, an increase of $1.3 billion from the first quarter. Only 1.5% of total banks are considered “problem banks” which is within the normal range, according to the release. There was one bank failure in the second quarter.

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