Meridian Interstate Bancorp Inc., parent company of East Boston Savings Bank and Mt. Washington Bank, said it made a $2.2 million profit in the first quarter compared with a $3.2 million profit in the same period a year ago.

Meridian’s return on average assets was 0.43 percent compared with 0.69 percent a year prior, and return on average equity of 3.83 percent compared with 5.89 percent.

The quarter’s earnings are the result of the bank’s emphasis on expansion in the real estate and business lending sectors, according to Richard J. Gavegnano, chairman and CEO.

First-quarter net loan growth was $70 million. Non-performing assets declined 10 percent. Deposits increased $41 million. The bank opened a new Cambridge branch in February.

Net interest income for the quarter increased 8.9 percent to $15.9 million compared with $14.5 million in the same quarter a year ago.

The company’s provision for loan losses was $1.3 million for the quarter ended March 31, compared with $342,000 for the quarter ended March 31, 2011.

Non-performing loans declined $5.1 million to $48.6 million, or 3.41 percent of total loans outstanding at March 31, from $53.7 million, or 3.97 percent of total loans outstanding as of Dec. 31.

Non-interest income increased $363,000, or 10.3 percent, to $3.9 million for the quarter from $3.5million for the same period a year prior.