Iowa banks reported an increase in loans during the second quarter, potentially signaling more confidence in the economy.

Iowa’s 233 domiciled banks saw loans increase to $89.4 billion, up 4% from 2024’s second quarter and 1% from $88.5 billion 2025’s first quarter.

Several sectors contributed to the growth in loans, Jenica Lensmeyer, spokesperson for the Iowa Bankers Association, wrote in an email. “Commercial and industrial loans, ag production loans, real estate loans, and nonfarm/nonresidential commercial real estate loans have all increased slightly in Q2 2024.”

Domestic credit card loans, however, declined in the second quarter of 2025 compared to the same period a year ago, Lensmeyer wrote.

Nationally, loan balances increased industrywide, up 2.1% or by $263.7 billion, according to the Federal Deposit Insurance Corp.’s quarterly report. Total loans at community banks increased 1.7% from the first quarter and 4.9% from a year ago. The increase was led by loans for nonfarm nonresidential commercial real estate and one- to four-unit residential mortgages.

In the second quarter that ended June 30, the FDIC reported that Iowa banks had:  

• $107.5 billion in total deposits, a 3.8% increase from a year ago when deposits were $103.5 billion. However, deposits slipped slightly from the first quarter when they totaled $108.8 billion.
• $129 billion in assets, up slightly from the first quarter when they were $128.9 billion. Second-quarter total assets were 2.9% higher than the same period in 2024.
• $725 million in net income through the second quarter.

Nationally, the number of banks on the FDIC’s “Problem Bank List” decreased by four to 59 in the second quarter. Only 1.3% of all banks are considered “problem banks,” which is within the normal range. One bank failure in the second quarter was reported.
To read the Iowa Bankers Association news release, click here.