Banker & Tradesman file photo

Brookline Bancorp still expects to complete its acquisition of New York-based PCSB Financial Corp. this year, but the company has not yet received all regulatory approvals.

To complete the deal this year, the bank would need to have regulatory approval by around Nov. 15, Brookline Bancorp’s co-president and chief financial officer, Carl Carlson, said during the bank’s third quarter earnings call on Oct. 27.

Brookline Bancorp, the parent company of Brookline Bank and Bank Rhode Island, announced in May that it would acquire Yorktown Heights, New York-based PCSB Financial Corp., the parent company of PCSB Bank, in a cash and stock deal valued at approximately $313 million. The company plans to operate PCSB Bank as a separate bank.

Brookline Bancorp’s CEO Paul Perrault said during last week’s call that the bank has satisfactorily answered all of the Federal Reserve’s questions about the merger.

“So, we are literally just waiting by the phone,” Perrault said.

If Brookline Bancorp does complete the acquisition this year, the company would end 2022 with more than $10 billion in total assets. This threshold would trigger the Durbin Amendment in the second half of 2023, leading to lower interchange fees on debit card transactions as part of the Dodd Frank Act.

Carlson said in response to an analyst’s question that he expects an annual impact on noninterest income between $800,000 to $1 million.

Brookline Bancorp had third quarter net income of $30.1 million, or $0.39 per basic and diluted share, compared to $28.8 million, or $0.37 per basic and diluted share, in the third quarter of 2021. Net income in the second quarter of 2022 was $25.2 million, or $0.33 per basic and diluted share.

Brookline Bancorp had total assets of $8.7 billion on Sept. 30, up from $8.5 billion on June 30 and $8.3 billion on Sept. 30, 2021. Total loans and leases were $7.4 billion, up $129.4 million from the second quarter and $489.6 million year-over-year.

Total deposits at the end of the third quarter were $6.74 billion, down from $6.89 billion at the end of the second quarter and $6.87 billion in the same quarter last year. Carlson said during the earnings call that the bank has seen pressure on certificate of deposits, while some clients have moved into Treasurys. He added that the quarter also saw activity with funds moving from lawyer’s escrow accounts and for customers involved with 1031 exchanges.

“We continue to see growth in customers and activity on the commercial front in all of our markets, and time will tell how much the liquidity squeeze and the tightening by the Fed will impact us,” Carlson said.