Iowa Banks Display Continued Strength with Loan and Deposit Growth

Iowa’s banking sector demonstrated resilience and growth in the fourth quarter of 2025, with increases in loans, deposits, and total assets, according to data released by the Federal Deposit Insurance Corporation (FDIC). The positive trend underscores the vital role Iowa banks play in fueling the state’s economy.

Loan Growth Fuels Economic Activity

Iowa banks reported a 4.7% increase in loan growth, rising from $87.8 billion in 2024 to $92 billion in 2025. This growth was driven by a 1.6% increase in the fourth quarter compared to the third quarter. “Banks use deposits to make loans in their communities, and this data highlights just how important those dollars are,” said Adam Gregg, president and CEO of the Iowa Bankers Association in a news release. “Iowa banks fuel Iowa’s economy by providing loans – local deposits multiply and support local lending.”

Deposit and Asset Increases

Iowa’s 229 domestically chartered banks also experienced steady deposit growth, reaching $110.8 billion by the end of 2025, a 3.6% increase from 2024 and a 1.8% increase from the third quarter. Total assets for Iowa banks exceeded $132 billion at year-end, representing a 3.9% increase from the previous year.

National Trends Mirror Iowa’s Performance

The positive performance in Iowa aligns with national trends. Nationally, total loan balances increased to $13.5 trillion in the fourth quarter, a 2% rise from the previous quarter. The industry’s loan growth rate reached 5.9% annually, the fastest pace in 11 quarters, according to FDIC Chair Travis Hill. Total deposits also increased by 1.7% to $20.1 trillion, marking the sixth consecutive quarterly increase.

Leadership Transition at the Iowa Bankers Association

The Iowa Bankers Association recently appointed Adam Gregg as its president and CEO. Gregg previously served as the Lieutenant Governor of Iowa from May 2017 through September 2024 and brings a wealth of experience to the role. He succeeded John Sorensen, who retired after 38 years with the association.