The parent company of East Boston Savings Bank had another strong quarter, reporting net income of $14.1 million, or $0.27 per diluted share, compared to $11.3 million, or $0.22 per diluted share, for the second quarter of last year.

Net interest income for the quarter was $41 million, up $5.6 million, or 15.8 percent, from the quarter ended June 30, 2017. The margin fell 9 points over the linked quarter settling at 3.07 percent, down 17 basis points from the same time last year.

“The improvement in our efficiency ratio to 53.89 percent for the second quarter of 2018 from 57.62 percent for the first quarter of 2018 was largely due to the 3 percent rise in net interest income coupled with the 5 percent decrease in non-interest expenses,” Richard J. Gavegnano, chairman, president and CEO of the company, said in a statement. “Our strong loan pipeline continues to be the key driver of our rising net interest income.”

Total assets at the bank grew to $5.68 billion, up roughly $890 million from the second quarter of last year. Total deposits at the end of the second quarter were roughly $4.39 billion, up $730 million from one year ago.

However, the bank has begun to see deposit pressure with rising interest rates, as money market deposits were down over $100 million from one year ago.

Interest expense on deposits increased to $12.8 million for the quarter, up $4.8 million, or 60.7 percent, from the quarter ended June 30, 2017, primarily due to growth in average total deposits and increases in the cost of average total deposits from 1.04 percent to 1.19 percent.

Total loans grew to $5.17 billion at the end of the quarter, up $873 million from one year ago. The bank saw extremely nice gains in commercial real estate and multifamily loans, but had a very modest increase in commercial and industrial loans during a time when many community banks are starting to see a pick up.

EBSB has also been heavily investing in its branch franchise and is in the midst of opening six new branches in 2018.

“Our investments in franchise expansion continue as we prepare for the opening of new branches in Boston’s Brigham Circle, Lynnfield and Burlington later in the year and evaluate additional opportunities within our metropolitan Boston market area,” Gavegnano said. “We believe such investments are vital to meeting our organic growth and financial performance goals.”

The company’s provision for loan losses was $1.9 million for the quarter, down $373,000 from the second quarter of last year. Non-performing assets were $7.9 million, or 0.14 percent of total assets, at June 30, 2018, compared to $11.5 million, or 0.24 percent of total assets at June 30, 2017.