Strong loan activity boosted Hawaii State Federal Credit Union’s net income more than fourfold in the second quarter.

The state’s second-largest credit union, with $1.39 billion in assets, earned $2.64 million compared with $503,000 in the year-earlier period.

Loans jumped 23.4 percent to $607.5 million from $492.5 million.

“The primary driver of our income growth has been increased lending, but we have also grown noninterest income by adding investment services, adding a new Visa Signature Cash Rewards Credit Card and increasing credit and debit card usage,” Hawaii State FCU President and CEO Andrew Rosen said Thursday. “The amazing thing is we grew noninterest income (which include service charges and fees) by 26 percent without any fee increases.”

Hawaii State FCU, which has generated more loan volume than any credit union in the state, has about 87,000 members. It serves state, city and county employees as well as nonprofits and select businesses and their families across the state.

The state’s largest credit union, HawaiiUSA FCU, had $1.48 billion in assets and $529.4 million in loans as of June 30. That union, with about 123,000 members, caters to the educational community and select employee groups.

Rosen said Hawaii State FCU’s growth “validates the credit union model of putting the members first.”

“We can offer better rates and charge lower fees because we don’t have to pay profits to shareholders,” Rosen said. “We are owned by our members. We relaunched our mortgage lending program in 2014 and now have five dedicated mortgage loan officers, but we’ve also added new loan products like our PV loan, a jumbo home equity line of credit (HELOC) and our competitive HELOC that have driven growth.”

During the second quarter, Hawaii State FCU generated $78.7 million in loans, including $42.6 million in mortgage loans, $11.3 million in home equity lines of credit and $16.3 million in personal loans and lines of credit.