Banks and credit unions sold $10.3 billion in mutual funds in the third quarter, up from $7.5 billion in the same quarter of 2005.

Sales were down, however, from $10.9 billion recorded by financial institutions in the first quarter, according to Kehrer-LIMRA Inc., Windsor, Conn., which conducted the study, sponsored by Accessor Capital Management, Seattle.

“Bank mutual fund sales declined month after month from their peak in March and April, bottoming out at $2.9 billion in July,” commented Kenneth Kehrer, whose firm conducts the quarterly surveys. “But then sales rebounded 17% in August and another 18% in September.”