The number of Iowa-chartered banks is declining, but those that remain boosted lending in the third quarter by 7.7 percent from a year ago. The Iowa Bankers Association said today that bank charters dropped to 305 during the quarter, down from 315 the same time last year. Lending, on the other hand, grew to $55.5 billion from $51.5 billion a year ago. Loan demand was positive across all sectors, including real estate, farm, commercial and consumer segments. Loan quality declined slightly, with noncurrent loans rising to 0.74 percent from 0.61 percent last year and nonperforming loans increasing to 0.59 percent from 0.55. Net interest rate margin remained steady at 3.38 percent at the end of the third quarter, the same as a year ago. Net income for the third quarter was $252.5 million, up from $239.5 million last year. Return on assets improved slightly to 1.22 percent at the end of the third quarter, up from 1.21 percent a year ago. Total assets increased to $83.9 billion from $77.4 billion. Nationally, bank profits improved to $45.6 billion, up $5.2 billion from a year ago.