Greatly improved credit quality that exceeded expectations helped Boston Private Financial Holdings, the holding company of Boston Private, to $23.4 million in net income for the second quarter, an increase of $7 million from the second quarter of 2016.

Earnings-per-share for the $8.1 billion asset bank were $.27 at the end of the second quarter, up from $.18 at this time last year.

Net interest income for the quarter was $57.1 million, a 16 percent increase from the second quarter of 2016.

The company “delivered strong earnings during the second quarter,” Clayton G. Deutsch, CEO of the company, said in a statement. “The private bank showed robust net interest income growth as our balance sheet positioning, overall loan growth and core deposit strength drove expansion of net interest margin and pre-tax pre-provision income, with recoveries also assisting earnings.”

Boston Private recorded a provision credit of $6.1 million for the second quarter, up nearly $6 million from the first quarter and $3.6 million higher than the second quarter of 2016. This was driven by net recoveries, declines in quantitative loss factors, a decrease in criticized loans and a decline in commercial loans, partially offset by residential loan growth.

The company recovered $3.1 million in loans that had previously been charged-off, primarily in the commercial real estate category and in the San Francisco and New England markets.

Boston Private executives also said they had $10 million in reserves against its substandard loans, which are classified as substandard but are still accruing interest income.

Total accruing substandard loans at the end of the second quarter were valued at $51.1 million, down roughly $13 million year-over-year.

Boston Private executives expressed high hopes in its wealth advisory and investment management segments, despite the fact the bank’s wealth management and trust division was the only assets under management division that turned a profit in the second quarter ($63 million).

The wealth advisory and investment management divisions operated at a loss in the second quarter of $67 million and $176 million respectively.

“We are pleased with the AUM development, revenue build and improving financial performance of our Boston Private Wealth business. We remain focused on increasing shareholder value by positioning all of our businesses for long-term success and attractive returns while maintaining strong credit quality and a favorable risk profile,” Deutsch said in a statement. “Our advisory wealth and investment management segments demonstrated operating leverage translating into revenue growth and improved profitability.”

Consolidated, the AUM net flows were negative $180 million, a $19 million improvement from the second quarter of 2016.

Boston Private executives said they were pleased and have strong prospects for client acquisition and client development of the wealth advisory and investment management segments.