Loan growth continues at Iowa banks

Iowa banks reported more than $53.3 billion in loans on their books as of March 31 - a 7.6 percent increase from the first quarter of 2015, according to the Federal Deposit Insurance Corp.

Demand for real estate, farm, commercial and consumer loans increased during the quarter.

'The quarterly performance report from the FDIC shows Iowa banks are growing and healthy,” said John Sorensen, president and CEO of the Iowa Bankers Association, in a news release. 'Overall loans increased by 7.6 percent as banks continue to fuel Iowa's economic growth.”

Non-current loans were up slightly to 0.65 percent of total loans from 0.63 percent at the end of the first quarter of 2015. Non-performing loans - those 90 days or more past due and not accruing interest - declined to 0.54 percent of total loans from 0.59 percent in the first three months of 2015.

Net interest rate margins improved slightly to 3.39 percent at the end of the first quarter, compared with 3.32 percent the year prior. Net income for Iowa's 309 banks was $245 million in the first quarter, up from $226 million the year before.

Return on assets, another indicator of overall bank performance, improved to 1.23 percent at the end of the first quarter, compared with 1.19 percent at the end of the first quarter of 2015. Total assets reached $79.9 billion at the end of the first quarter, compared with $76.6 billion the year prior.

The number of bank charters in Iowa declined to 309 at the end of the first quarter from 318 at the end of the same period last year.

Nationally, net income for the first quarter declined slightly to $39 billion from $39.8 billion a year ago. The number of banks across the nation on the FDIC 'problem list” fell to 165 during the first quarter, the smallest number of 'problem” banks since mid-2008.

The FDIC deposit insurance fund, which is supported by bank premiums, increased to $75.1 billion in the first quarter, up $2.5 billion from the final quarter of 2015.