PROVIDENCE – Brookline Bancorp Inc., the Boston-based parent company of Bank Rhode Island, ended the first quarter of 2020 $17.3 million in the red, the company reported on Wednesday.
The first-quarter loss represents a $39.8 million decrease from the $22.5 million revenue reported in the first quarter of 2019. Earnings per diluted share dropped from 28 cents to 22 cents.
The sharp decline in revenue reflects a $52.8 million increase year over year in the company’s provision for credit losses – bringing the total to $54.1 million – driven primarily by the forecasted economic effect of COVID-19, as well as new federal accounting standards, the company stated.
Total revenue ticked down 1.8% to $92.9 million year over year. This included a 41% increase in non-interest income to $9.3 million, primarily driven by a gain in investment securities. Net interest income, the difference between interest earned on assets such as loans, mortgages and securities, and interest paid out to customer deposits, declined 2% to $61.7 million, reflecting lower interest income on loans and leases, as well as deposit securities. Non-interest expense totaled $40.7 million, up 4.8% from the same time a year ago, including a $1.5 million increase in employee salaries and benefits.
Total loans and leases increased $434.3 million to $6.8 billion, primarily driven by commercial real estate portfolio growth. Total assets stood at $8.5 billion, a $942.5 million increase over the first quarter of 2019. Total deposits reached $5.9 billion, up from $5.6 billion the at same time last year.
Net interest margin – the difference between interest income generated and the amount paid out to lenders – declined 33 basis points to 3.31% reflecting cuts to federal interest rates.
“In these unprecedented times, I am thankful for our employees who have risen to the challenge of providing support for our customers and our communities,” Paul Perrault, company CEO and president, said in a statement.
Brookline’s earnings report did not break out the performance of Providence-based Bank Rhode Island. Brookline is also the parent company for Brookline Bank and First Ipswich Bank in Massachusetts.
Brookline Bank and Bank Rhode Island together processed 2,183 loans totaling $518 million through the U.S. Small Business Administration’s Paycheck Protection Program as of April 16.
Nancy Lavin is a staff writer for PBN. Contact her at Lavin@pbn.com.
