The Cape Cod Five Cents Savings Bank said it turned a $7.1 million profit in the first half of 2012, an increase of nearly 6 percent over the same period a year ago.

The bank said growth in interest and non-interest income helped offset tightening margins. Net interest income was $30.6 million compared to $28.9 million a year prior. Non-interest income increased to $12.6 million from $9.4 million.

"Heavy refinancing activity and an improved purchase market for real estate" boosted the bank’s loans, the bank said in a statement. Net loans increased $105 million to $1.56 billion.

Cape Cod Five finished the half with $2.2 billion in assets, a $124 million increase from the same period a year ago.