Bank loans and profits grew in the third quarter, according to the Federal Deposit Insurance Corp., and with the increased lending came a slight rise in challenged loans.

Lending grew 6 percent to $58.9 billion at the end of the quarter, up from $55.5 billion a year ago. Noncurrent loans were at 0.79 percent of outstanding balances, up from 0.73 percent a year ago, while nonperforming assets increased to 0.62 percent from 0.58 percent.

Net income in the third quarter was $254.4 million, up from $252.5 million in the third quarter of 2016. Return on assets, an indicator of bank performance, was steady at 1.21 percent, while total assets reached $87.3 billion, up from $83.9 billion year ago.

The number of Iowa banks declined over the period to 300 from 305. National loan growth was 3.5 percent and profits improved to $47.9 billion, up $2.4 billion from a year ago.