Data released by the Federal Deposit Insurance Corp. (FDIC) showed continued strength for the banking industry. The state-specific data reported loan, deposit and asset growth in the third quarter despite continued inflationary pressures and economic uncertainty.

“The banking industry in Iowa remains competitive and continues to benefit the economy and the communities it serves,” said Adam Gregg, president and chief executive officer of the Iowa Bankers Association. “This quarter’s results reflect the industry’s ongoing stability and points to positive momentum heading into the close of 2025.”

The 232 Iowa-domiciled banks continued to see loan growth this quarter, with an increase of 1 percent from the previous quarter to $90.4 billion, and an increase of 4 percent from a year ago. Deposits also increased from the second quarter to $108.9 billion, a 3.6 percent increase from the same period in 2024.

Loan quality remains strong in the third quarter with average net loan charge-offs at just 0.10 percent, a slight increase from second quarter 2025, but still favorable credit quality.

The noncurrent percentage of total loans was 0.59 percent this quarter, which is a slight decrease from 0.66 percent at the end of the prior quarter and a slight increase from the same period in 2024. This percentage indicates that Iowa continues to show financial stability.

Iowa banks reported a 1.6 percent increase in total assets this quarter over last to $131 billion, a 3 percent increase from the same period in 2024.

Iowa banks had $1.1 billion in net income through the third quarter. The competitive interest rate environment continues to have an impact on net interest margins, signifying the benefit of Iowa’s competitive banking sector to consumers and businesses.

The average return on assets, an overall indicator of bank performance, at Iowa banks was 1.17 percent in the third quarter, an increase from 0.86 percent in the third quarter 2024.