Benjamin Franklin Bancorp, the bank holding company for Benjamin Franklin Bank, has reported net income of $3.7 million for 2008, compared to $3.6 million in 2007, a 2.7 percent increase.

For the fourth quarter, net income was $164,000, compared to $1.2 million in the fourth quarter of 2007, an 86.7 percent drop.

The decline in quarterly earnings was primarily due to increases in loan loss provisions and operating expenses, the latter principally the result of costs incurred in connection with the company’s pending merger with Independent Bank Corp., the bank said. On Nov. 8, the company entered into an agreement and plan of merger with Independent, a Massachusetts corporation and parent of Rockland Trust Co.

The company’s board of directors declared a quarterly cash dividend of $.08 per common share, payable on Feb. 24 to stockholders of record as of Feb. 10.