Brookline Bancorp grows profit nearly 20% in 2Q

BANK RI PARENT BROOKLINE BANCORP INC. on Wednesday announced net income of $12.6 million in the second quarter, representing an 18.4 percent year-over-year increase. Earnings per share improved to 17 cents per diluted share from 14 cents per diluted share a year earlier.
BANK RI PARENT BROOKLINE BANCORP INC. on Wednesday announced net income of $12.6 million in the second quarter, representing an 18.4 percent year-over-year increase. Earnings per share improved to 17 cents per diluted share from 14 cents per diluted share a year earlier.

BROOKLINE, Mass. – Brookline Bancorp Inc. on Wednesday announced net income of $12.6 million in the second quarter, representing an 18.4 percent year-over-year increase. Earnings per share improved to 17 cents per diluted share from 14 cents per diluted share a year earlier.
Total interest and non-interest income grew 5 percent compared with the 2014 second quarter to $60 million, thanks in large measure to a 2.7 percent increase in total loans and leases, which reached $4.7 billion by the June 30 end of the period.
Paul Perrault, president and CEO of Brookline Bancorp, which is the parent company of Bank Rhode Island, called the quarter “solid” despite volatility in the interest rate environment.
“It is because of our strong fundamentals that we experienced strong growth in loans,” Perrault said.

How Bank Rhode Island contributed to Brookline’s performance will not be disclosed until the company makes a more detailed quarterly filing later this year.

Total assets grew 3.5 percent to $5.8 billion over the year, driven by increases in commercial real estate loans, commercial loans and leases and consumer loans of 8.6 percent, 19.1 percent and 9.4 percent, respectively. The bank did report that indirect automobile loans almost disappeared, falling to $19.4 million from $376.3 million in the course of the year.

The company also reported a provision for loan and lease losses of $1.8 million in the quarter, a 17.8 percent decrease from $2.2 million a year earlier. However, the accumulated provision for losses grew 9.1 percent over the 12 months, as the growing loan portfolio and “a $1.6 million specific reserve established during the first quarter [of this year],” pushed the loan loss provision as a portion of total loans and leases to 1.19 percent by the end of the period, versus 1.12 percent at June 30, 2014.

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Brookline increased its dividend to 9 cents per share from 8.5 cents per share a year earlier. At the same time, the net interest margin fell to 3.49 percent from 3.63 percent for the quarter. Return on average assets improved to 0.82 percent from 0.74 percent, while return on average stockholders’ equity increased to 7.24 percent from 6.46 percent.

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