FDIC data: Strong banks support Iowa’s economy
Second quarter report shows broad-based loan growth to support a growing economy.
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According to Federal Deposit Insurance Corp. data released Tuesday, the banking industry finished the second quarter in a strong position with widespread, robust loan growth for several consecutive quarters. Iowa banks reported loan growth, stable deposits and a healthy loan-to-deposit ratio to support local economies.
"Despite ongoing inflationary pressure, Iowa's banking industry remained strong through the first half of 2026," said Adam Gregg, Iowa Bankers Association president and chief executive officer. "The strength of Iowa banks is directly tied to the strength of Iowa communities. Local deposits fuel local lending, and lending supports growth for businesses, homeowners and farmers alike."
The 226 Iowa-domiciled banks saw an increase in loans this quarter to $88.1 billion.
Total deposits for the second quarter were $106.8 billion, compared to $107.5 billion in both the prior year and previous quarter.
Iowa banks had a strong loan-to-deposit ratio of 82.5 percent, putting deposits to work in local communities.
Bank merger and acquisition activity in the state continues to impact data comparisons.
Loan quality remains strong with average net loan charge-offs at just 0.06 percent, which signifies strong loan portfolios.
The noncurrent percentage of total loans at 0.64 percent for Iowa banks shows financial stability in the state, significantly lower than the nation's 0.93 percent.
Total assets remain stable for Iowa banks this quarter at $128 billion, compared to $128.1 billion in the first quarter.
Second quarter total assets were 0.8 percent lower than the same period in 2025.
Iowa banks had $909 million in net income through the second quarter. The average return on assets, an overall indicator of bank performance, at Iowa banks was 1.44 percent in the second quarter, a 31-basis-point increase from the year-ago quarter ROA.