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Hingham Institution for Savings saw earnings increase 25 percent in the second quarter compared to the same quarter last year, helped in part by the sale of two former branches.

The bank had second quarter net income of $20.4 million, or $9.54 per share basic and $9.28 per share diluted, compared to $16.33 million, or $7.65 per share basic and $7.50 per share diluted, in the second quarter of 2020.

The bank’s second quarter net income included a $2.3 million pre-tax gain from selling former branch properties in Weymouth and South Hingham, the bank said in a statement announcing its earnings.

Hingham Institution for Savings’ board of directors increased its regular cash dividend to $0.51 per share, up 4 percent from the previous quarter.

While the banking industry has generally been seeing net interest margins go down, Hingham continues to see an increase. The net interest margin for the second quarter went up 31 basis points to 3.46 percent, compared to 3.15 percent in the second quarter of 2020. The net interest margin for the first six months of 2021 was 3.50 percent compared to 2.99 percent in the same period last year.

The bank said it has benefited from a sharp decline in the cost of interest-bearing liabilities, including retail and commercial deposits and wholesale funding. The bank said non-interest-bearing deposit balances have continued to grow. A decline in the yield on interest-earning assets partially offset these benefits, the bank said, driven primarily by less interest on excess reserves held at the Federal Reserve Bank of Boston and a lower yield on loans.

Total deposits, including wholesale deposits, increased to $2.34 billion in the second quarter, which the bank said represented 19 percent annualized growth year-to-date and 14 percent growth since June 30, 2020.

Net loans increased in the second quarter to $2.63 billion, compared to $2.38 billion on June 30, 2020. The bank said loan growth has been concentrated in its commercial real estate portfolio. Total assets were $2.97 billion at the end of June, up from $2.86 billion at the end of December.

The bank’s already low efficiency ratio continued to improve in the second quarter, falling to 21.37 percent compared to 25.28 percent in the same period last year. Operating expenses as a percentage of average assets fell to 0.74 percent in the second quarter compared to 0.79 percent in the second quarter of 2020. The bank said it remained “focused on reducing waste through an ongoing process of continuous improvement.”

“Returns on equity and assets were strong in the second quarter of 2021, although such performance should always be viewed cautiously, especially when tailwinds are blowing strongly in our favor,” Chairman Robert H. Gaughen Jr. said in the statement. “We remain focused on careful capital allocation, defensive underwriting and disciplined cost control – the building blocks for compounding shareholder capital through all stages of the economic cycle. These remain constant, regardless of the macroeconomic environment in which we operate.”

The bank also plans to close its Norwell branch in September, subject to regulatory approval.