Iowa banks reported a 4.7% increase in loan growth up from $87.8 billion in 2025 to $92 billion in 2025, new data from the Federal Deposit Insurance Corp. shows.
“Banks use deposits to make loans in their communities, and this data highlights just how important those dollars are,” Adam Gregg, president and CEO of the Iowa Bankers Association, said in a news release. “Iowa banks fuel Iowa’s economy by providing loans – local deposits multiply and support local lending.”
Loan growth was up 1.6% in the fourth quarter from the third quarter.
Iowa’s 229 domiciled banks also saw steady growth in deposits, ending 2025 with $110.8 billion in deposits, up 3.6% from 2024 and 1.8% from the third quarter.
Total assets for Iowa banks exceeded $132 billion at year-end, an increase of 3.9% from the prior year.
Nationally, loan balances also increased industrywide, the FDIC reported. Total loans grew to $13.5 trillion, an increase of 2% from the previous quarter. The majority of community banks had loan growth in the fourth quarter, with nonfarm nonresidential commercial real estate loans leading quarterly growth. Total loan and lease balances at community banks grew 5.4% from the year-ago quarter. “The industry’s loan growth rate in the fourth quarter was 5.9%, the fastest annual growth rate in 11 quarters,” FDIC chair Travis Hill said.
Total deposits increased by 1.7% from the third quarter to $20.1 trillion in the fourth quarter, with domestic deposits rising for the sixth consecutive quarter. Most community banks saw an increase in total domestic deposits in the fourth quarter, and domestic deposit growth for community banks was 5% from the year-ago quarter.
The news release from the Iowa Bankers Association is available at iowabankers.com.
