The Hingham Institution for Savings announced a small drop in net income during its first quarter this year, which the bank largely attributed to a low interest rate environment plaguing the industry as of late.

The bank reported $3.205 million in net income for the quarter ended March 31, compared with $3.241 million in net income for the same time period last year, a decrease of about 1.1 percent.

"Consistent with the general banking industry, the bank is seeing the impact of the extended period of low rates on our net interest margin," President Robert H. Gaughen, Jr. said in a statement. Despite this difficult extended trend, vigorous growth in our balance sheet, combined with our outstanding efficiency and cost control, continues to produce some of the strongest earnings in our industry."

Deposits increased by $69.1 million, or 9 percent, to $876 million from $807 million during the first quarter of 2012. Total assets increased $76 million, or 7 percent, to just over $1.2 billion from about $1.1 billion last year. Net loans increased $92 million, or 11 percent, from $869 million at the end of last year’s first quarter to $961 million as of March 31.

Next week, the bank will pay a quarterly cash dividend of 26 cents per share to stockholders of record as of April 10.