Iowa’s state-chartered banks showed additional signs of financial vitality in the quarter that ended Sept. 30, with 75 percent of the 313 financial institutions posting a gain in earnings, compared with 38 percent in the quarter ending Sept. 30, 2009.

“Iowa banks have exceeded national averages throughout the last couple of years,” said John Sorensen, president and CEO of the Iowa Bankers Association. “I think we’re just seeing them continue to build on that.”

By the end of the third quarter, the number of employees at these banks was on the rise – to 10,943 from 10,587 during the year-ago quarter – as were net income, total deposits and capital levels.

The state’s community banks reported $329 million in net income, compared with $252 million a year ago. They had slightly more than $40 billion in deposits, an increase of nearly $3 billion from 2008, and equity capital of $5.27 billion.

The number of unprofitable banks dropped to 7 percent from nearly 12 percent a year ago. However, both figures remained higher than the third quarter of 2008, when less than 5 percent of banks were operating in the red.

Iowa banks reported a return on equity of 8.57 percent, above the level reported a year ago but well below the 10.76 percent reported on Sept. 30, 2008.

Noncurrent loans accounted for 1.75 percent of all loans and leases, a drop from 2 percent a year ago.

“We have benefited from a relatively good economy,” Sorensen said. “We haven’t been hit as hard as the rest of the country when it comes to the impact of the housing crisis, so you expect our results to be better.”