Brookline Bank authorizes $10M stock buyback program

BOSTON – The parent company of Bank Rhode Island on Thursday authorized a year-long stock repurchase program for up to $10 million of its total outstanding shares of common stock.

Brookline Bancorp Inc., based in Boston with $6 billion in total assets, owns both Bank Rhode Island and First Ipswich Bank. The company’s board of directors approved the stock repurchase program, slated to run through Jan. 31, 2017, according to a federal filing. Shares of common stock may be repurchased from time to time in the open market or through negotiated transactions at prevailing market prices in accordance to federal laws, according to the filing.

The decision to repurchase shares, which is typically an indication a company believes its shares are undervalued in the marketplace, comes at the heels of Brookline Bancorp reporting net income of $52.4 million, or 71 cents per diluted share, in 2015, representing a 15.5 percent year-over-year increase.

Brookline Bancorp could theoretically increase its earnings per share through the repurchase program by reducing the total number of shares outstanding.

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