Iowa Mortgage Facts

• Iowa home prices declined just 4.5% from March 2008 to 2009, while nationally prices dropped 11.5%.
• 81% of mortgage loans in Iowa have been made to prime borrowers and only 8% are sub-prime loans.  Sub-prime loans with adjustable rates (ARMs) are where the bulk of problems are nationwide.
• Home ownership in Iowa is 74%, above the national average of  68%.  This is a good indicator that Iowa lenders are providing borrowers with financing appropriate for their net worth, income and borrowing capacity.
• Iowa mortgage loans in foreclosure were 2.34% in the first quarter of 2009, better than the national average rate of 3.85%.
• Iowa ranks 44th in foreclosure starts at .70% of residences.  The 1st quarter of 2009 national average was 1.37%.
• Iowa remains a good place for consumers to conduct business.  Competition is strong and mortgage rates remain attractive. Look for local banks, well established in your community and regulated by the FDIC, OCC, or OTS.

Economy

• Iowa's unemployment rate is 5.1%, well below the national average of 9.4%.
• Iowa ranked 5th in U.S. per capita income growth in 2008, increasing 5.1%
• Iowans have the lowest credit card debt in the nation at $4,300 per capita

Iowa Banking Facts

• Iowa banks are highly capitalized and prepared for economic fluctuations.  Iowa banks have core capital-to-asset ratios of 9.19%, which is substantially higher than the national average of 7.93%.  
• Iowa commercial banks reported net income of $127 million in the first quarter of 2009, down 11.8% from the same quarter a year ago.
• Iowa banks recorded a 7.4% increase in deposits for the twelve month period ended 3/31/09.  A vote of confidence from bank customers looking for a safe place to put their money.
• For the same period, loans increased by $1.7 billion or 4.6%, despite a reluctance on the part of consumers and businesses to borrow in a slowing economy.
• Non-current loans and leases amounted to 2.07% of total loans.  The national average was 3.72%.
• Return on assets averaged .90% compared to national average of .25%.
• 92% of Iowa banks were profitable at the end of the first quarter 2009
• Just nine of 377 Iowa chartered banks have received CPP money.

Customers' deposits in Iowa banks are protected.  Deposits are insured by the FDIC for up to $250,000 per depositor per insured bank.  The FDIC web site (www.fdic.gov) or the banking experts at Hampton State Bank can also provide information on how you may qualify for up to $1.5 million in insured deposits if held in different categories of ownership.

Note: The standard insurance amount of $250,000 per depositor is in effect through 12/31/2013.

For more information or to ask questions regarding banking or the financial industry, contact Brad Davis, Hampton State Bank President and CEO, at 641-456-2559 or email him at bdavis@hamptonstate.com.   

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