Brookline Bancorp in Boston reported higher quarterly earnings because of loan growth.
The company said that net income for the second quarter increased 5%, to $10 million, from the same period a year ago. Earnings per share of 14 cents met the estimates of analysts polled by Bloomberg.
Brookline had $5.6 billion in total assets through the second quarter, up from $5.2 billion during the same period a year earlier. This increase was driven by loans and leases, which increased 9%, to $4.6 billion. Commercial real estate and commercial loan and lease portfolios accounted for $3.4 billion of this total amount, Brookline said in its earnings release on Wednesday afternoon.
Brookline's net interest income grew by 2%, to $46.4 million. The company's net interest margin compressed 17 basis points, to $3.61%, due to the decrease in accretion on the acquired loan and lease portfolio.
Noninterest income jumped 5%, to $3.3 million. The increase was boosted by deposit fees rising 14% as well as the company recording a smaller loss from investments in affordable housing projects. However, these improvements were offset by the gains on sales of loans and leases dropping 70% year over year, to $54,000.
Noninterest expenses rose 1%, to $31.2 million, as salaries and benefits and occupancy costs increased from a year earlier.
Brookline recorded a provision for credit losses of $2.3 million, down almost 7% from a year earlier. The company attributed this decrease to improved credit quality in the originated and acquired loan and lease portfolios.