Iowa banks increased earnings, beat national performance ratios
Iowa banks beat national performance ratios in nearly every category, the head of an industry trade group said following the release of third-quarter data by the Federal Deposit Insurance Corp. (FDIC).

“In the first three quarters, the net earnings of Iowa banks increased by 24 percent compared to one year ago, and 92 percent of Iowa’s 363 bank charters were profitable, compared to 80 percent nationally,” John Sorensen, president and CEO of the Iowa Bankers Association, said in a news release.

Iowa banks recorded $390 million in net earnings for the nine-month period that ended Sept. 30, up from $314 million for the same period in 2009. The data also showed an increase in Iowa banks’ net earnings relative to total assets, nearing the historical industry benchmark of 1 percent.

The FDIC report also showed that Iowa banks experienced a decline in their non-current loans ratio, which dropped from 2.19 percent of total loans to just under 2 percent of total loans – less than half of the national average.