Iowa banks reported net income of $937 million at the end of 2017, up 1.4 percent from the prior year. Profits were affected by one-time revaluation of deferred tax assets as required by the federal tax law that took effect late last year. The law will result in lowered tax rates for banks and other corporations. The Federal Deposit Insurance Corp. reported that bank profits nationally dropped 3.5 percent. However, without the one-time adjustments called for by the tax bill, profits would have increased 7.6 percent. In Iowa, loans and leases increased 6.7 percent to $59 billion from a year ago, with noncurrent loans at 0.62 percent of all loans, down from 0.7 percent a year ago, and net loan charge-offs were 0.15 percent, compared with 0.11 percent last year. The average year-end net interest rate margin was 3.42 percent, compared with 3.4 percent the year prior. Return on assets remained positive at 1.15 percent at the end of 2017, compared with 1.18 percent at the end of 2016. Total assets at Iowa banks were at $83.7 billion in 2017. A release from the Iowa Bankers Association took special note of the $231.5 million in taxes paid last year by Iowa banks, a 16 percent increase from 2016. Banks are lobbying to impose a franchise tax on income on the state’s credit unions. Banks pay what is called a franchise fee on the equivalent of 5 percent of net income. Credit unions do not pay taxes on income at the state or federal level. A tax bill introduced in the Iowa Senate would establish a franchise tax rate on all financial institutions, including credit unions, of 2 percent on the first $7.5 million of income, and an additional 4 percent above $7.5 million.