The parent company of Willimantic-based Savings Institute Bank and Trust reported net income of $2 million, or $0.17 diluted earnings per share, for the first quarter of 2018, compared to $1.7 million, or $0.14 diluted earnings per share, for the first quarter of last year.

Net interest income increased $427,000 year-over-year to $10.9 million for the quarter ended March 31, primarily as a result of rising yields on loans due to a rising interest rate environment and a reduction in advances from the Federal Home Loan Bank. The margin ticked up 11 points, reaching 3 percent at the end of the first quarter.

“We are pleased with the success we have had implementing our business plan of growing the loan portfolio and deposits by expanding our lending and deposit gathering resources,” Rheo A. Brouillard, president and CEO of the company, said in a statement. “In addition, we continue to focus on increasing our core noninterest income while prudently reducing noninterest expenses.”

Total assets are nearing $1.6 billion, up about $18 million year-over-year. Total loans reached about $1.26 billion, up about $2.5 million year-over-year.

Noninterest income in the first quarter was about $2.4 million, about $1 million less than the same time period last year, while noninterest expense was about $10.05 million for the first quarter, down almost $300,000 from a year ago.

Nonperforming loans increased to $7.9 million in the first quarter, compared to $5 million at the end of the first quarter in 2017, resulting from increases in nonperforming multifamily and commercial real estate of $2.7 million and commercial business loans of  $550,000, offset by a decrease of $315,000 in nonperforming residential real estate loans.