Recent bank merger and acquisition activity contributed to modest declines in deposits and loans at Iowa banks in 2026’s first quarter, according to Iowa Bankers Association.

In late February, Mattoon, Ill.-based First Mid Bancshares completed its acquisition of Two Rivers Financial Group in Burlington, a deal that transferred about $1 billion in deposits and $883 million in loans to the Illinois institution.

Also in February, Nicolet Bankshares, headquartered in Green Bay, Wis., completed its acquisition of Iowa City-based MidWestOne Financial Group Inc. In the third quarter, the last time MidWestOne reported earnings, the institution had deposits of $5.4 billion; loans totaled $2.2 billion. 

Total deposits for Iowa banks in the first quarter that ended March 31 were $107.5 billion, nearly 3% less than fourth-quarter deposits of $110.8 billion and 1.2% less than a year ago, when first-quarter deposits were $108.8 billion.

Total loans in 2026’s first quarter were $88 billion, 4.3% less than fourth quarter’s loan total of $92 billion and slightly less than a year ago when loans totaled $88.5 billion. 

Also in the first quarter, total assets for Iowa banks were $128.1 billion, a slight decline from 2025’s first quarter when assets totaled $128.9 billion.

Nationally, loan balances grew 7.1% from a year ago, the fastest annual growth rate since 2023’s second quarter, according to the Federal Deposit Insurance Corp. Total loans for the quarter were $13.7 trillion, with the strongest growth in commercial real estate loans. The FDIC, in its release, noted that “growth was broad-based across all major portfolios except agriculture production and auto loans.” 

Total deposits in the first quarter increased to $20.5 trillion, slightly more than both year-end and first quarter 2025. 

The news release from the Iowa Bankers Association can be found here.