Rockland-based Independent Bancorp, parent company of Rockland Trust Co., has reported a more than 38 percent year-over-year increase in second quarter net income, a bump attributed largely to increased demand for commercial and industrial loans.

In the quarter ended June 30, the company reported $11.12 million in net income, up from $8.02 million in the second quarter of last year. Total loans grew to $3.7 billion, an increase of $96.9 million, or 2.7 percent, compared with the prior quarter – or 10.7 percent on an annualized basis, the company said.

Independent Bancorp saw large growth in its commercial and industrial loan portfolio, which increased by $59.2 million, or 11.6 percent, in the second quarter. Commercial real estate loan generation was strong, as the portfolio increased by $30.7 million,
or 1.7 percent. The home equity portfolio also grew, rising $13 million, or 2.1 percent. Residential real estate loans declined by $7.5 million, or 1.6 percent, as loans refinanced into longer-term, fixed-rate loans, which are not commonly held in portfolio by the company, according to a statement.

The company’s allowance for loan losses was $46.6 million as of June 30, compared to the prior quarter level of $46.4 million. The allowance for loan losses was 1.25 percent of total loans as of June 30, compared to 1.28 percent at the end of the first quarter.