BOSTON – Brookline Bancorp Inc. on Wednesday reported first-quarter profit of $14 million, or 19 cents per diluted share, an increase of 2.7 percent, compared with $13.6 million, or 18 cents per diluted share, a year earlier.
The Boston-based parent of Bank Rhode Island reported total interest and noninterest income growth of 21.6 percent to $78.3 million.
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“Brookline Bancorp has experienced solid growth in the first quarter of 2017,” said President and CEO Paul Perrault in a statement. “We have continued to grow our loan and deposit balance in an intense and competitive market.”
Revenue was buoyed by the completed sale of Community Bank System Inc., or CBU, which the bank bought through the merger of CBU and Northeast Retirement Services Inc. Brookline Bancorp through its subsidiary owned 9,721 shares of NRS stock, which turned into $3.1 million and 144,609 shares of CBU common stock after the merger.
The deal added $11.4 million to Brookline’s noninterest income, which grew 145.9 percent to $15.9 million compared with a year earlier. After removing that one-time event, the bank’s total interest and noninterest income, Brookline saw a 3.9 percent increase in total income.
Total interest income grew 7.7 percent to $62.4 million thanks largely to growth in the bank’s loan portfolio. Total loans and leases grew 6.5 percent to $5.5 billion compared with $5.1 billion a year earlier. The largest increases were realized in total commercial real estate loans, and total commercial loans and leases, which rose 6.7 percent to $3 billion, and 8.7 percent to $1.5 billion, respectively.
Total assets grew 5.1 percent to $6.5 billion. At the same time, allowance for loan and lease losses increased 12.8 percent to $66.1 million. Nonperforming assets grew 45.8 percent to $47.4 million.
Total deposits increased 5.9 percent to $4.7 billion.
The bank’s net interest margin grew to 3.53 percent compared with 3.45 percent a year earlier. Return on average assets fell to 0.83 percent from 0.84 percent, while the return on average stockholder equity increased to 7.58 percent from 7.57 percent.
“Entering the second quarter, we look forward to building upon the foundation of success we have achieved as we continue to grow our franchise,” Perrault added.
