People’s United Financial Inc., which posted market- beating quarterly results and raised its dividend, said it expects to increase net interest margin and continues to scout for acquisition targets.

The bank, which has seen a strong loan growth this year, expects it to continue, bucking a trend among other regional banks that have struggled to increase lending.

Investors have been paying more attention to banks’ lending portfolios to drive future earnings.

The Connecticut-based bank with a growing presence in the Bay State also expects to grow its net interest margin, despite the current low interest rate environment.

"Last quarter, we expected net interest margin to remain at the 3.85 percent level, or above, for the rest of 2011. Today, we would expect net interest margin to remain at 4 percent, or above, for the rest of the year," Chief Financial Officer Kirk Walters said on a conference call with analysts.

The lender also said it is primarily eyeing acquisitions in New England and New York City Metro areas, and also in the Mid-Atlantic region.

The bank currently has over a $1 billion in cash and short-term investments.

For the first quarter, the S&P 500 Index component earned $51.7 million, or 15 cents a share, compared with $13.6 million, or 4 cents a share, a year ago.

Analysts, on average, had expected a profit of 12 cents a share, before items, according to Thomson Reuters I/B/E/S.

Net interest income rose to $220.3 million from $159.6 million, a year ago.

People’s United, which competes with The Bancorp and First Niagara Financial Group, increased its annual dividend by a cent to 63 cents.

Shares of the company were up a percent in extended trading. They closed at $12.84 on Wednesday on Nasdaq.