PROVIDENCE – Brookline Bancorp Inc., the Boston-based parent company for Bank Rhode Island, is back in the black in the second quarter after ending the prior quarter in the red.
The $19.6 million second-quarter earnings reported Wednesday represent a 4.4% decrease over profits reported for the second quarter of 2019.
The profit marks a $36.9 million rebound over the prior quarter, when the company posted a $17.3 million loss after allocating $54 million to its credit losses provisions in anticipation of bad loans caused by COVID-19. The company added another $5.3 million to its reserve fund for credit losses in the second quarter based on the continued forecast of COVID-19.
Quarterly earnings per diluted share dropped from 26 cents in the second quarter of 2019 to 25 cents for the three months that ended June 30.
Year-over-year total revenue dropped 6.7% to $88.4 million, driven by a reduction in interest on loans and leases. Noninterest income decreased by 16.6% to $6.2 million, reflecting cuts to deposit fees, net loan level derivative income and gains on loans and leases held for sale.
The company’s net interest income, the difference between interest earned on assets such as loans, mortgages and securities, and interest paid out to customer deposits, saw a 1.8% bump to $64.3 million driven by lower interest expenses on deposits.
Noninterest expenses ticked down slightly to $39.1 million, a 1.2% decrease driven by spending on compensation and employee benefits.
Total loans and leases increased 13.9% to $7.4 billion, reflecting the $565.8 million in small-business loans through the U.S. Small Business Administration’s Paycheck Protection Program issued in the second quarter. Total quarterly assets stood at $9.1 billion, an 18.8% rise over a year ago. Year-over-year quarterly deposits increased 14.5% to $6.4 billion, driven by an increase in demand checking accounts.
Net interest margin – the difference between interest income generated and the amount paid out to lenders – declined 46 basis points to 3.09%.
“The continued strength of our company’s core operations is reflected in this quarter’s earnings,” Paul Perrault, company CEO and president, said in a statement. “While we remain vigilant as we look to the future, the business lines that are fundamental to our success continue to operate effectively in these challenging times.”
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.
Nancy Lavin is a PBN staff writer. You may reach her at Lavin@PBN.com.
