Net income declined on a year-over-year basis at Brookline Bancorp in the third quarter this year, but the holding company for Brookline Bank also experienced increases in its loan portfolio and total assets for the same period.
The company announced net income of $9.4 million for the quarter ended Sept. 30, down 17 percent from $11.4 million for the same quarter last year.
Total assets increased $85.7 million during the third quarter of 2013 to $5.2 billion at Sept.30, and increased $174.8 million from $5.1 billion at Sept. 30, 2012. The growth in total assets during the third quarter this year is primarily driven by loans and leases, which increased $94.5 million to $4.3 billion at the end of September, representing 9 percent growth on an annualized basis. At the end of the third quarter, the commercial real estate and commercial loan and lease portfolios totaled $3.1 billion, or 71.7 percent of total loans and leases, compared with $3 billion, or 70.2 percent at June 30, and $2.8 billion, or 67.4 percent at Sept. 30, 2012.
The company’s commercial real estate portfolio increased $61.8 million during the third quarter of 2013, or 12 percent on an annualized basis. This growth offset the decrease of $38.8 million in the indirect automobile portfolio during the same period.
Deposits of $3.7 billion at Sept. 30 increased $81 million from June 30, and $170 million from Sept. 30, 2012, representing an annualized increase of 9 percent from June 30. Core deposits, which consist of demand checking, NOW, savings and money market accounts, increased at a 15 percent annualized rate in the third quarter of 2013, raising the core deposit ratio from 73.4 percent at June 30, 2013 to 74.6 percent at Sept. 30. Total borrowings at Sept. 30 remained flat as compared to June 30 and Sept. 30, 2012.
Net interest income for the third quarter of 2013 decreased $2 million to $43.4 million from $45.4 million for the second quarter of 2013, largely as a result of the inclusion of a $1 million prepayment penalty received on a commercial loan payoff in the second quarter of 2013. Lending rate pressures account for the remaining decline. Net interest margin decreased from 3.78 percent for the three months ending June 30, to 3.56 percent for the three months ended Sept. 30.
