In the two years since its merger with Ipswich Co-operative Bank, the Institution for Savings’ total assets have reached $1 billion as of the end of the first quarter, according to President and CEO Mark F. Welch.

According to first quarter financials, the bank’s total assets were $1.014 billion, an increase of $205 million since the merger, largely fueled by loan growth of $186 million. Total deposits increased to $214 million, the bank said.

The Newburyport-based bank has reported $1.7 million in net income for the first quarter of 2009, as assets increased to $31 million. 

The numbers posted this quarter put the bank on pace to equal or exceed 2008 results, when the bank posted the highest operating earnings in its 188-year history, the bank said in a press release.

"Despite one of the most challenging economic climates in decades, net income was $7.1 million in 2008," said Michael J. Jones, executive vice president, COO and CFO. "The bank continues to post very strong core earnings in extremely difficult times. Our earnings outlook for the remainder of 2009 is very good."