Driven by a 23-percent jump in its lending portfolio, net income at Newburyport-based Institution for Savings rose 8 percent last year compared to 2007, to slightly more than $7 million.

Total deposits grew significantly in all branches, increasing by 18 percent from 2007, the bank said. Total capital stood at 13 percent of total assets, and the bank said it increased its market share in every community in which it has a branch office.

 "The banking landscape has been forever changed by circumstances which are, by and large, out of our control," said President/CEO Mark F. Welch. "Unfortunately, we continue to face threats such as investment impairments, possible future loan losses, higher FDIC insurance premiums and general mistrust of banks."