Seattle-based Washington Federal reported net income of nearly $35.2 million, or 33 cents a share, for the three months ending June 30, up from $30.1 million, or 27 cents a share, in the same period in 2011.

The company attributed the 16.9 percent increase in net income to lower losses on troubled assets, and it recorded a quarterly net gain on the sale of foreclosed properties for the first time in four years.

Washington Federal said it produced $430 million in loans over the quarter, many of them business and commercial real estate loans, compared to $264 million in the same period last year.