Iowa banks were busy lending money last year, with loan volume up 8.3 percent from 2013 totals to $49.5 billion. Loan demand in real estate, farm, commercial and consumer segments all saw increases from the year prior. Nationwide, bank lending gained 5 percent last year over the previous year.
In Iowa, loan quality remained strong. Net loan charge-offs ended the year at 0.15 percent of total loans, compared with 0.19 percent the year prior. Other loan quality indicators, such as noncurrent and nonperforming loans also improved. Noncurrent loans were down to 0.65 percent of total loans from 0.83 percent last year. Nonperforming loans declined to 0.62 percent of total loans from 0.78 percent. Iowa banks also reduced the number of properties acquired through foreclosures.
Net income for Iowa banks was $848.8 million, up 4 percent from last year to $813 million. Return on assets, another indicator of overall bank performance, edged up to 1.15 percent from 1.13 percent at the end of 2013. Total assets reached $75.9 billion in 2014. Iowa's banks also reported holding just under $80 billion in assets as of Dec. 31, compared to holding $73 billion in assets at the end of 2013.
Iowa Banks Performance Q4 2014
In Iowa, loan quality remained strong. Net loan charge-offs ended the year at 0.15 percent of total loans, compared with 0.19 percent the year prior. Other loan quality indicators, such as noncurrent and nonperforming loans also improved. Noncurrent loans were down to 0.65 percent of total loans from 0.83 percent last year. Nonperforming loans declined to 0.62 percent of total loans from 0.78 percent. Iowa banks also reduced the number of properties acquired through foreclosures.
Net income for Iowa banks was $848.8 million, up 4 percent from last year to $813 million. Return on assets, another indicator of overall bank performance, edged up to 1.15 percent from 1.13 percent at the end of 2013. Total assets reached $75.9 billion in 2014. Iowa's banks also reported holding just under $80 billion in assets as of Dec. 31, compared to holding $73 billion in assets at the end of 2013.
Iowa Banks Performance Q4 2014
The number of banks in Iowa fell during the year, continuing a trend of consolidation in the state. Iowa had 320 banks at the end of 2014, according to the FDIC. That is down from 330 institutions in 2013 and 414 in 2004. Even with fewer bank branches, employment at those banks has remained relatively steady. Banks in the state employed about 14,600 people in 2014 compared to about 14,300 people in 2004.
Nationally, bank net income for 2014 declined slightly to $152.7 billion from $154.4 billion from, driven in part by a decline in mortgage loan demand and a few major banks having to pay larger litigation expenses.
Nationally, bank net income for 2014 declined slightly to $152.7 billion from $154.4 billion from, driven in part by a decline in mortgage loan demand and a few major banks having to pay larger litigation expenses.
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