Iowa banks post strong quarter

Iowa's banks recorded a strong second quarter, helping them to outpace the nation in terms of loan growth through the first half of the year.

The state's banks provided more than $50.8 billion in the six months that ended on June 30, according to data from the Federal Deposit Insurance Corp. That represented an increase of 8.8 percent from $46.7 billion through the same date in 2014.

Banks nationwide recorded a 5.4 percent increase in total loans through June 30.

John Sorensen, president and CEO of the Iowa Bankers Association, said in a news release that loan demand is a reflection of economic conditions.

'In Iowa, our positive employment environment and growing consumer demand for housing and other products is reflected in the steady loan demand in these areas,” Sorensen said. 'We also are continuing to see the impact of persistently low crop prices and elevated input costs (seed and fertilizer) on the demand for farm loans this quarter.”

Demand for agricultural loans saw the biggest increase in the second quarter, up 13.9 percent from the same period last year.

Overall loan quality remains strong, according to the FDIC data. Non-current loans were at 0.65 percent, down from 0.74 percent on June 30, 2014. Non-performing loans - those 90 days or more past due and not accruing interest - were at 0.59 percent, down from 0.68 percent at the end of the second quarter of 2014.

Net income rose to $231 million at the end of the second quarter from $216 million at the end of the same period last year. On a year-to-date basis, net income advanced to $457 million as of June 30 from $418 million through the same date last year.

Total assets at Iowa banks reached $76.5 billion on June 30, compared with $73.6 billion at the end of the second quarter of 2014. Deposits at Iowa banks slipped from $62.9 million at the end of the first quarter of 2015 to $62.1 million at the end of the second quarter on June 30, 2015.