Brookline Bancorp Inc. reported slightly more than $7 million in net income for the third quarter, a significant increase from $5.2 million reported during the same period last year.

The bank set aside less money for problem loans – $551,000 in the third quarter, compared to $2.5 million during the same period last year, according to a statement.

Net income for the nine months ended Sept. 30 was $20.5 million, compared to $13.4 million for the nine months ended Sept. 30, 2009.

The board of directors declared an 8-cent dividend per share. The dividend will be paid Nov. 15 to stockholders of record on Oct. 29.