Iowa Banks See Loan Activity Increase
- iowa banks reported a rise in lending activity during the second quarter of 2025, a potential indicator of growing confidence in the state's economy.
- Iowa's 233 banks headquartered within the state reported total loans reaching $89.4 billion in the second quarter of 2025.
- Several sectors experienced loan growth during the second quarter, contributing to the overall increase.
Iowa Bank Loans Increase, Signaling Potential Economic Confidence
Table of Contents
Overview
iowa banks reported a rise in lending activity during the second quarter of 2025, a potential indicator of growing confidence in the state’s economy. Total loans held by Iowa’s banks increased both year-over-year and quarter-over-quarter.
Loan Growth Statistics
Iowa’s 233 banks headquartered within the state reported total loans reaching $89.4 billion in the second quarter of 2025. This represents a 4% increase compared to the second quarter of 2024 and a 1% increase from the first quarter of 2025, when total loans stood at $88.5 billion.
| Quarter | Total Loans (Billions USD) | Year-over-Year Change | Quarter-over-Quarter Change |
|---|---|---|---|
| Q1 2025 | $88.5 | 3.6% | – |
| Q2 2025 | $89.4 | 4.0% | 1.0% |
Sector-Specific Loan Trends
Several sectors experienced loan growth during the second quarter, contributing to the overall increase. Jenica Lensmeyer, spokesperson for the Iowa Bankers Association, detailed these increases in an email, noting growth in “Commercial and industrial loans, ag production loans, real estate loans, and nonfarm/nonresidential commercial real estate loans” Iowa Bankers Association. This broad-based growth suggests a generally positive economic outlook across multiple industries.
Decline in Credit Card Lending
Despite the overall positive trend, domestic credit card loans experienced a decline in the second quarter of 2025 compared to the same period in 2024. Further analysis is needed to determine the cause of this decrease, which could be attributed to factors such as changing consumer spending habits or increased debt repayment.