PROVIDENCE – Brookline Bancorp Inc., the Boston-based parent company for Bank Rhode Island, reported a $18.7 million profit for the third quarter, the company announced on Wednesday.
Third-quarter earnings represented a 17% decrease over the $11.6 million profit reported a year ago. However, the latest quarterly earnings also include a $4.5 million provision for credit losses, 400% more than a year ago, amid “significant uncertainty and volatility” due to the COVID-19 pandemic, the company stated.
Earnings per diluted share were 24 cents, compared with 28 cents one year prior.
Year-over-year total revenue dropped 10% to $85.6 million with decreases in both interest and noninterest income.
Net interest income, the difference between interest earned on assets such as loans, mortgages and securities, and interest paid out to customer deposits, ticked up 4.3% primarily due to a $7.7 million drop in interest expenses on deposits.
Noninterest income was $4.8 million, a 38.7% year-over-year decline field by a $1.7 million loss in net loan level derivative income.
Noninterest expenses rose slightly, 1.9%, to $40.9 million, including a $1.2 million bump in employee compensation and benefits.
Total assets stood at $9 billion, a 14% year-over-year increase driven by increases in loans and leases including $581.7 million across the 2,922 Paycheck Protection Program loans the company has funded. Total loans and leases grew 12.5 to $7.4 billion, with gains in commercial, commercial real estate and residential mortgage loans.
Total deposits of $6.8 billion marked a 19.2% year-over-year increase driven by increases in savings and money market accounts.
Net interest margin – the difference between interest income generated and the amount paid out to lenders – declined 37 basis points to 3.08%.
“Today we are pleased to report another solid quarter of earnings and growth which are rooted in the strength of our core business areas,” Paul Perrault, president and CEO, said in a statement. “While we continue to monitor the situation with COVID-19, the business lines that are fundamental to our success continue to operate effectively during 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.
