Iowa banks reported increases in deposits and loans in the first quarter of 2025, a continuing sign of resiliency during ongoing economic uncertainty, the Iowa Bankers Association said in a news release.

“While uncertainties in the market continue to exist, Iowa banks remain strong, resilient, and committed to local economic growth,” Adam Gregg, the association’s president and CEO, said in a news release.

Information released by the Federal Deposit Insurance Corp. for the first quarter that ended March 31 showed that Iowa banks had:

• $108.8 billion in deposits, a 4.4% increase for the same period a year ago and a 1.7% increase from the fourth quarter when deposits totaled $107 billion.
• $88.5 billion in loans, a 0.8% increase from the fourth quarter. Average net loan charge-offs were 0.04%.
• $128.9 billion in assets, up 1.5% for the fourth quarter and 2.7% from the same period in 2024.
• $342 million in net income in the first quarter.

The competitive interest rate environment continues to have an impact on net interest income, according to the news release. Iowa, which has more banks per capita than most states, has a competitive interest rate environment for consumers and businesses that contributes to lower average net interest margins. The average return on assets, an overall indicator of bank performance, at Iowa banks increased to 1.07% in the first quarter from 0.92% in the first quarter 2024.

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