Lending fell, profits increased for Iowa banks in third quarter

Iowa banks are improving their financial health, though lending was still down in the third quarter, according to the Federal Deposit Insurance Corp.’s third-quarter financial results for the state’s 348 banks. Iowa financial institutions improved third-quarter earnings by 31 percent from the prior year, to $514 million. Total Iowa bank loans and leases decreased by 1.5 percent from the same period a year ago, which can be attributed to a reduction in construction, land development and commercial real estate loans, the Iowa Bankers Association said. The results showed that 94 percent of Iowa banks were profitable in the quarter, and bank capital levels improved to nearly $7 billion. 

Iowa banks are improving their financial health, though lending was still down in the third quarter, according to the Federal Deposit Insurance Corp.’s third-quarter financial results for the state’s 348 banks.

Iowa financial institutions improved third-quarter earnings by 31 percent from the prior year, to $514 million. Total Iowa bank loans and leases decreased by 1.5 percent from the same period a year ago, which can be attributed to a reduction in construction, land development and commercial real estate loans, the Iowa Bankers Association said.

The results showed that 94 percent of Iowa banks were profitable in the quarter, and bank capital levels improved to nearly $7 billion.