BOSTON – Brookline Bancorp Inc., the parent company of Bank Rhode Island, reported a profit of $7.6 million for the first quarter of 2023, down 69% from the $24.7 million recorded in first quarter of 2022.
Earnings per diluted share plummeted to 9 cents, down 72% from 32 cents a year ago.
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The results for the first quarter of 2023 reflect pre-tax one-time costs of $21.5 million associated with the acquisition of PCSB Financial Corp. and its subsidiary, PCSB Bank, which closed on Jan. 1.
Excluding those one-time acquisition costs, operating earnings were $23.3 million, or 27 cents per diluted share, for the first quarter of 2023. The company said those costs consisted of merger-related costs of $6.4 million associated with the acquisition and $16.7 million of provision for credit losses expense attributable to the closing, partially offset by $1.7 million in securities gains.
PCSB’s bank subsidiary, PCSB Bank, now operates as a separate subsidiary of Brookline Bancorp and has 15 banking offices throughout the Lower Hudson Valley of New York. In addition to BCSB and Bank Rhode Island, Brookline is parent to Brookline Bank, Clarendon Private, Eastern Funding and Macrolease.
“I am very pleased to report we successfully completed the acquisition and conversion of PCSB Financial and PCSB Bank,” said Paul Perrault, Brookline Bancorp’s CEO and chairman. “Our acquisition assures that PCSB Bank will remain well positioned to continue its growth in the New York market. Like all financial institutions, we continue to monitor the recent developments in the banking sector and in our markets, to take advantage of opportunities as they present themselves.”
Total deposits in the first quarter of 2023 were $8.5 billion, an increase of $1.4 billion, nearly 20%, from the $7.1 billion reported a year ago.
Net interest income rose to $86 million for the first quarter of 2023, up $16.2 million, or 16%, from $69.8 million in the first quarter of 2022. Non-interest income was $12.9 million, up 134% year over year from $5.5 million.
The net interest margin – the difference between interest income generated and the amount paid out – decreased 13 basis points to 3.36% for the quarter.
Earnings from nonincome sources such as fees on loans and deposits grew to $12.9 million in the first quarter of 2023, up 134% from $5.5 million year-over-year. The biggest driver was “other income,” which grew to $4.2 million from $1.3 million during the same period last year.
Non-interest expense for the first quarter of 2023 was $64.8 million, up $22.3 million or 52%, from $42.5 million in the first quarter of 2022. A large part of that expense was attributable to employee compensation and benefits rising to $36.6 million, up $9.7 million, or 36%, from $26.9 million during the same period last year.
Total assets for the first quarter, were $11.5 billion, an increase of $2.9 billion or 34%, from the $8.6 billion declared a year ago. Total cash rose to $486.3 million from $293 million year over year.
Total loans and leases were $9.2 billion, an increase of $2 billion year over year.
The company recorded a provision for credit losses of $25.5 million for the quarter.
Brookline’s earnings report did not break out the performance of Providence-based Bank Rhode Island, which had the fifth-highest share of in-state deposits in the Ocean State as of Dec. 31, at $2.6 billion, according to the FDIC.
Sam Wood is staff writer at PBN. Contact him at Wood@PBN.com
