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Massachusetts stock banks fourth quarter earnings results continue to show improvements in COVID-related loan modifications.
Brookline Bancorp, the parent company of Brookline Bank and Bank Rhode Island, had 298 loans receiving COVID-related modification on Dec. 31 totaling $90 million, 1.2 percent of its loan balance. At the end of September, 3.8 percent of the portfolio, representing 910 loans, had been receiving COVID-related modifications. As in the third quarter, Brookline Bancorp said in its fourth quarter earnings presentation that it is closely watching the exercise, laundry and retail sectors.
Brookline Bancorp was able to release $2.1 million from its provision for credit losses in the fourth quarter due in part to a reduction of outstanding loans and commitments and a modestly improved economic outlook in the models used when determining the allowance for credit losses, the bank said in its fourth quarter earnings statement.
Brookline Bancorp had net income in the fourth quarter of $26.7 million, or $0.34 per basic and diluted share, compared to $22.2 million, or $0.28 per basic and diluted share, for the fourth quarter of 2019. Net income for the full-year 2020 was $47.6 million, or $0.60 per basic and diluted share compared to $87.7 million, or $1.10 per basic and diluted share, in 2019.
Lowell-based Enterprise bank had COVID-related payment deferrals on 47 loans at the end of December, totaling $46.7 million, 1.8 percent of its loan portfolio. At the end of September, the bank had 178 loans totaling $104.1 million, or 3.9 percent, receiving modifications. About half the balance involved loans paying monthly interest, while the rest were deferring principal and interest.
Enterprise Bank had fourth quarter net income of $9.9 million, or $0.82 per diluted share, compared to $8.7 million, or $0.74 per diluted share, in the fourth quarter of 2019. Full-year net income was $31.5 million, or $2.64 per diluted share, compared to $34.2 million, or $2.89 per diluted share, in 2019.
Cambridge Trust Co., which completed a merger with Wellesley Bank in 2020, is down to 42 loans totaling $23 million receiving COVID-related deferrals, 0.7 percent of its loan balance. At the end of the third quarter, the bank had 3.2 percent of its portfolio, representing 140 loans, receiving deferrals. The loans receiving deferrals at the end of the fourth quarter included 15 commercial loans, mostly in multifamily and accommodation and food.
Cambridge Trust’s fourth quarter net income was $13 million, or $1.86 diluted earnings per share, compared to $7.1 million, or diluted earnings per share of $1.42, in the fourth quarter of 2019. Full-year net income was $31.9 million compared to net income of $25.2 million in 2019. Diluted earnings per share were $5.03 for 2020, a 6.3 percent decrease over diluted earnings per share of $5.37 for 2019.
Cambridge Trust’s year-end results included the merger accounting impact of the current expected credit loss (CECL) accounting standard, merger expenses, office closures and related one-time occupancy expenses.
