After shelving half a billion dollars in the first quarter to keep its two subsidiary banks safe after the March bank failures, Brookline Bancorp took the offensive in the second quarter by pursuing more lending.

Brookline Bancorp, the parent company of Brookline Bank, Bank Rhode Island and PCSB Bank, saw its second-quarter net income total to $21.9 million or $0.25 per basic and diluted share, which is higher than the first quarter’s $7.6 million or $0.09, but lower than the $25.2 million or $0.33 for the second quarter of 2022.

“In the first quarter, we had over half a billion dollars [$513 million] to our on-balance sheet liquidity in the form of cash and securities. During the second quarter, we prudently reduced this position. Our bankers remain very active in the markets, and while we continue to be prudent and attentive to our existing customers, we are seeing opportunities to bank stronger relationships,” Brookline Chairman and CEO Paul Perrault said during the company’s earnings call last week.

The holding company’s total loans increased to $9.3 billion from $9.2 billion in the first quarter and $7.3 billion in the second quarter last year. This was due to growth in both commercial real estate and equipment finance loans, but was offset by slight declines in commercial and consumer loans.

Total deposits also grew to $8.5 billion from $8.4 billion from January to March, and $6.9 billion from April to June of 2022. This is due to expansion in higher rate savings and time deposits, but was partially offset by the declines in demand deposits, negotiable order of withdrawal accounts, money market accounts and brokered deposits.

Total assets declined by $316 million quarter-on-quarter, to $11.2 billion from $11.5 billion in the first quarter, but was higher than the $8.5 billion in the second quarter last year.

Despite gains in loans and deposits, higher funding costs dragged the net interest margin slightly to 3.26 percent from 3.36 percent the prior quarter, while net interest income was flat at $8 billion.

Non-interest income also fell to $5.5 million from $12.9 million last quarter due to declines in gain on sales of loans and investments ($3 million), derivative income ($2 million), and the $2 million impact from the mark to market on interest rate swaps.

The company noted an increase in total nonperforming assets to $46.9 million from $29 million in the first quarter due to defaults in a $9.3 million commercial relationship and a $2.8 million commercial real estate relationship.

Perrault said that despite the challenging economic environment and increased competition for deposits, the company is focusing on being active in growing its lending while maintaining reserves at around 8 to 12 percent.

Looking at all factors, he said the company’s financials will likely be “down slightly in the third quarter, possibly flat, and increasing in the fourth quarter moving forward.”

Brookline has a footprint of 30 Brookline Bank branches in Boston and Eastern Massachusetts, 20 Bank RI branches in Providence, Rhode Island and 15 outlets of the newly acquired PCSB Bank in Westchester County and the lower Hudson Valley in New York.