Iowa: Weathered the Recession, Now Battling the Drought
The financial crisis that ripped through most of the country during the past four years had left the state of Iowa virtually unscathed.
Earlier this summer, unemployment was relatively low, home prices were stable and farm incomes were on the rise.
“The economy of Iowa is primarily agricultural driven,” he said. “To continue to grow, Iowa as a whole will need to be able to attract and support additional and diverse industries. The infrastructure is in place so it’s now just a matter of being able to communicate the value of the educated workforce and the work ethic of the Iowa population to businesses looking to locate.” Holle attributes his second quarter ROA of 74 basis points to the credit union’s growth.
“There were two new branches and a call center added in 2011, and another branch in 2012,” he said. “These operations expansions create a temporary drag on earnings, but all are currently on course to contribute positively to earnings. We also aggressively funded the (loan loss) allowance during the fourth quarter of 2011.”