Second quarter earnings for Boston-based Sovereign Bank, a subsidiary of Santander Holdings USA Inc., dropped 16 percent to $105.7 million in the second quarter compared with $126.6 million in the second quarter of 2012. Net earnings dropped almost 40 percent from the first quarter of the year, when earnings were reported as $175.6 million.

Net interest income was $424.5 million, a decrease of $38.4 million compared with the second quarter of 2012. These decreases are primarily due to the current low interest rate environment and new loan originations generating lower yields than in 2012.

Provisions for loan losses were $10 million for the quarter, a decrease of $97.7 million from the second quarter of 2012. The decrease in the provision is consistent with the continued overall improvement in the credit quality of the loan portfolio.

Non-accrual loans decreased from $1.11 billion on March 31, 2.11 percent of total loans, to $1.05 billion, 2.08 percent of total loans, on June 30, with decreases in net charge-offs, delinquent loans and non-accrual loans compared with the corresponding date a year ago.

The bank’s Tier I common capital ratio continued to equal the Tier I risk-based capital ratio of 13.85 percent at the close of the second quarter. As of June 30, the bank’s total equity was $12.8 billion.

The bank last week announced it would rebrand itself as Santander.