The Iowa Bankers Association recently released a banking industry report for the last quarter of 2017, showing steady growth in loan demand and stagnant growth in net income at Iowa banks. Total loans and leases increased to $59 billion at the end of 2017, up 6.7 percent from the year before. Net income at Iowa banks was $937 million at year-end, up 1.4 percent and applicable income taxes paid by Iowa banks totaled $231.5 million, another increase, this one up 16 percent from 2016. Nationwide, banks saw a decline in net income of 3.5 percent and an increase in applicable income taxes paid of 28 percent. During the same time period, according to S&P Global Market Intelligence data, Iowa credit unions saw a net increase in income of 32 percent, making $182 million net. The University of Iowa Community Credit Union, the largest financial institution in the state, had $4.7 billion in assets and made $69.7 million in profits last year—all income tax free. “Iowans deserve a tax code that is fair and equitable—and not one where the government picks winners and losers,” says President and CEO of the Iowa Bankers Association, John Sorensen. “Broadening the tax base, and eliminating exemptions, is key to lower tax rates for Iowans. When some pay nothing, all Iowans pay more,” Sorensen adds.
