BankRI parent company reports $22.6M profit in Q3

PROVIDENCE – Bank Rhode Island’s parent company Wednesday reported a third-quarter profit of $22.6 million, a slight increase from a $22.5 million profit in the same quarter last year.

Earnings for the quarter ended Sept. 30 were 28 cents per diluted share, flat from the third quarter 2018, reported Boston-based Brookline Bancorp Inc., which includes subsidiary Bank Rhode Island, the state’s fifth-largest consumer bank with nearly $1.8 billion in local deposits.

Despite paying higher tax rates this year compared with last year, the company generated a slight year-over-year profit, driven by loan and deposit growth, said Brookline Bancorp CEO and President Paul Perrault.

Assets as of Sept. 30 totaled $7.9 billion, a 7.6% increase from $7.3 billion in the third quarter last year. That included loans and leases totaling $6.6 billion, a 6.7% increase from a year earlier.

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Nonperforming assets dropped to $23.7 million, or 0.30% of all assets, in the quarter compared with $29.7 million, or 0.41% of all assets, a year earlier.

Liabilities as of Sept. 30 totaled $6.9 billion, an 8.2% increase from $6.4 billion a year earlier. That included deposits totaling $5.7 billion, a 9.5% increase from a year earlier.

Third-quarter interest income, including revenue from loans and leases, totaled $87.9 million, a 9% increase from $80.6 million in the same period last year. Non-interest income totaled $7.9 million, a 12.2% increase from $7.1 million a year earlier.

Third-quarter interest expense, mainly from pay outs on deposits, totaled $24.7 million, a 34.8% increase from $18.3 million a year earlier. Non-interest expense, including compensation and employee benefits, totaled $40.2 million, a 7.7% increase from a year earlier.

Also Wednesday, Brookline Bank and First Ipswich Bank, both subsidiaries of Brookline Bancorp, entered into a merger agreement in which First Ipswich Bank will merge into Brookline Bank.

“We anticipate closing the transaction in the first quarter of 2020,” the company said. “There are no branch closings as part of this charter consolidation.”

Scott Blake is a PBN staff writer. Email him at Blake@PBN.com.

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