It was another quarter of record earnings for the parent company of Brookline Bank that included strong profits and loan growth.
The company reported net income of $18.6 million, or $0.24 per basic and diluted share, for the first quarter of 2018, compared $13.4 million, or $0.19 per basic and diluted share, for the first quarter of 2017.
Those earnings included costs associated with the acquisition of First Commons Bank, which was completed in the first quarter. The transaction included the acquisition of $262.1 million in loans and the assumption of $273.7 million in deposits, each at fair value.
“Brookline Bancorp continued to exhibit strong performance in the quarter,” Paul Perrault, president and CEO of the company, said in a statement. “The acquisition of First Commons Bank was completed on schedule, thanks to the hard work of both teams. Our positive momentum continues as we go into the second quarter.”
Net interest income for the first quarter was $59.5 million, up more than $6 million form the first quarter of 2017. The net interest margin ended the quarter at 3.66 percent, up 13 basis points year-over-year.
Total assets at the $7.2 billion asset company are up $750 million year-over-year. Total loans reached $6.05 billion, up over $600 million year-over-year, with increases in nearly every category. Excluding the First Commons Bank acquisition, loans increased $121.7 million during the quarter or 8.5 percent on an annualized basis.
Noninterest income for the quarter was $6.2 million, down about $9.7 million from the first quarter of 2017.
The company recorded a provision for credit losses of $0.6 million for the quarter, down almost $13 million from the first quarter of 2017. Since the first quarter of 2017, the provision has fluctuated quarter-to-quarter from in the millions to hundreds of thousands.
Brookline CFO Carl Carlson said that of the company’s $18.5 million taxi loan portfolio, almost $11 million is still performing. The bank has $2.9 million in reserves against the $18.5 million portfolio.
