Hingham Institution for Savings increased its earnings to $3.9 million in the second quarter this year from $3.3 million last year, posting an 18 percent year-over-year increase.

"Improvement in our net interest margin, combined with effective cost control and solid growth in our balance sheet continue to produce some of the strongest earnings in the industry. This is a reflection of our continued commitment to shareholder value through quality growth and effective cost control," President Robert H. Gaughen Jr. said in a statement.

The bank’s annualized return on average equity during the quarter was 13.51 percent and the annualized return on average assets was 1.08 percent.

Deposits increased $132.9 million year-over-year, representing a 15 percent annualized rate of growth. Net loans increased $109.3 million, or 20 percent, from the year-ago period, and total assets increased $225.3 million, or 18 percent, from the second quarter last year.

Nonperforming assets comprised 0.44 percent of total assets, compared with 0.46 percent on Dec. 31 and 0.38 percent at the end of the second quarter last year. For the quarter ended June 30 this year, a provision of $175,000 was made to the bank’s allowance for loan losses, compared with $100,000 for the year-ago period.