Iowa's 340 banks and savings institutions recorded strong improvements in lending, deposits and overall financial performance in the quarter that ended on Sept. 30, according to data released by the Federal Deposit Insurance Corp.
Total loans and leases at Iowa banks and savings institutions increased to $42.3 billion year-to-date, an increase of $129 million from third quarter 2011. Iowa farm loans and commercial and industrial loans also posted gains.
Nationwide, total loan balances increased to $7.5 trillion in the third quarter from $7.3 trillion in third quarter of 2011.
Total deposits at Iowa institutions increased to $57.6 billion in the third quarter of 2012, an increase of $3.1 million from the same quarter of 2011. The majority of the deposits, $46.7 billion, are held in interest-bearing accounts.
Nationwide, total deposits increased to $10.5 trillion in the latest quarter, up from $10.0 trillion in the third quarter of 2011.
The average return on assets for Iowa's institutions, a primary measure of profitability and performance, is 1.2 percent, which is better than the national average of 1.02 percent. Capital levels also continue to improve in Iowa, remaining above the $7 billion mark for the third quarter in a row.
Iowa banks and savings institutions posted total net income of $627 million on Sept. 30, up from $513 million a year ago. More than 70 percent of Iowa's institutions reported earnings gains, and more than 97 percent are profitable.
Noncurrent loans and leases — those more than 90 days past due — in Iowa are at 1.35 percent, compared with the national average of 3.85 percent. Iowa's nonperforming loans are at 1.25 percent, compared with the nation's 2.36 percent.
John Sorenson, president and chief executive officer of the Iowa Bankers Association, said Iowa banks and savings institutions are a reflection of their local economies.
"The positive results are an encouraging indicator that business and consumer confidence is returning," Sorensen said. "Effectively managing asset quality and expenses also are key factors in these results."Bauer Financial of Coral Gables, Fla., will release its analysis of third-quarter Iowa bank and credit union results next week. The bank rating firm makes individual institution ratings and data available to the public on its web site.