Iowa banks experienced growth in lending and deposits through the end of 2025, according to new data released by the Federal Deposit Insurance Corp.
Loan and Deposit Growth
Loan growth for Iowa banks totaled 4.7%, increasing from $87.8 billion in 2024 to $92 billion in 2025. This growth continued through the fourth quarter, rising 1.6% from the third quarter. Deposits held by Iowa’s 229 banks reached $110.8 billion by the end of 2025, a 3.6% increase from 2024, and 1.8% from the third quarter.
Total assets for Iowa banks exceeded $132 billion at year-end, representing a 3.9% increase from the previous year. These gains occurred alongside a national trend of increased lending. Nationally, total loans grew to $13.5 trillion, a 2% increase from the previous quarter.
National Trends
The industry’s loan growth rate in the fourth quarter was 5.9%, the fastest annual growth rate in 11 quarters, according to FDIC chair Travis Hill. Nonfarm nonresidential commercial real estate loans led quarterly growth. Total deposits nationally increased by 1.7% from the third quarter, reaching $20.1 trillion, with domestic deposits rising for the sixth consecutive quarter.
Adam Gregg, president and CEO of the Iowa Bankers Association, emphasized the importance of these figures, stating, “Banks utilize deposits to make loans in their communities, and this data highlights just how important those dollars are.” He added, “Iowa banks fuel Iowa’s economy by providing loans – local deposits multiply and support local lending.”
Frequently Asked Questions
What was the percentage of loan growth for Iowa banks in 2025?
Iowa banks reported a 4.7% increase in loan growth in 2025.
How did deposits change for Iowa banks in 2025?
Deposits for Iowa banks ending 2025 totaled $110.8 billion, up 3.6% from 2024.
What type of loans led growth nationally?
Nonfarm nonresidential commercial real estate loans led quarterly growth nationally.
How might these trends in lending and deposits influence economic development in Iowa and across the country in the coming months?
Related reading