Meridian Interstate Bancorp Inc., the holding company for East Boston Savings Bank, reported net income for the year ended Dec. 31, 2012, of $12.4 million, an increase of 3.3 percent, or $400,000, from the year before.

Net income for the fourth quarter increased 5 percent, or $100,000, from $2 million in the fourth quarter of 2011 to $2.1 million last year in the fourth quarter of 2012.

The company recorded a pre-tax gain of $4.8 million on June 8, 2012, due to the sale of Hampshire First Bank, which was 43 percent owned by the company, to NBT Bancorp Inc. and NBT Bank. On an after-tax basis, the gain increased net income by $2.9 million for the year ended Dec. 31, 2012.

Net interest income increased $8.2 million, or 14.1 percent for the year ended Dec. 31, from $57.8 million in 2011 to $66 million in 2012. Non-interest income increased $5.9 million, or 38.2 percent, to $21.3 million from $15.4 million, primarily due to gains on the sale of the Hampshire First Bank affiliate and a $1.1 million gain on sales of securities, $778,000 in customer service fees and $246,000 in mortgage banking gains, partially offset by decreases of $800,000 in equity income from the Hampshire First Bank affiliate and $245,000 in loan fees.

Total assets increased $304.4 million, or 15.4 percent, to $2.3 billion at the end of 2012 from $1.97 billion at the end of 2011. Net loans increased $445 million, or 33.2 percent, to $1.79 billion at Dec. 31, 2012, from $1.34 billion at Dec. 31, 2011.

Deposits in 2012 increased $261 million, or 16 percent, to $1.87 billion.

Richard J. Gavegnano, chairman and chief executive officer, attributed 60 percent of that increase to the opening of five new branches over the past two years.

Gavegnano said in a statement, "We are gratified by the extraordinary expansion the bank experienced in conjunction with the improving Boston area economy during 2012, with total loan originations of $1.1 billion, and growth in core deposits of $279 million, or 29 percent. Commercial real estate loan originations for 2012 were $690 million, representing increased production of $409 million, or 146 percent. This growth drove the rise in net interest income of $8.2 million, or 14 percent, to $66 million and in our net interest margin by nine basis points to 3.33 percent for 2012, despite declining loan rates. We will continue to take advantage of our expanded capacity while we seek additional ways to increase market share and franchise value."