Brookline Bancorp, Inc. (NASDAQ: BRKL) today reported net income of $7.5 million, or $0.11 fully diluted earnings per share (EPS), for the quarter ended June 30, 2012. Net income for the first half of 2012 was $13.9 million, or $0.20 fully diluted EPS, compared to $14.3 million, or $0.24 fully diluted EPS, for the first half of 2011.
Second quarter 2012 results included a $6.7 million provision for credit losses that reduced net income by approximately $0.06 per fully diluted share. $4.2 million of the provision was booked in connection with two short-term commercial loans made immediately after acquisition by the Company’s subsidiary, Bank Rhode Island. These loans were based, in part, on the issuance of tax credits which, due to the unexpected and abrupt bankruptcy filing of an entity in Rhode Island related to the borrowers, were not issued. The Company has moved aggressively to resolve the problem credits and is evaluating all potential sources of recovery; however, further recovery attempts will be complicated and subject to additional discussions with the relevant parties, including the State of Rhode Island.
Paul Perrault, President and Chief Executive Officer of Brookline Bancorp, Inc. stated: “The Company’s core strategy, the expertise of our banking officers and the strength of our customer service remain unchanged. As a result, we continue to report strong growth in loans and deposits despite the challenging economic environment in which we operate. We view the magnitude of this quarter’s unexpected development as an unusual event which we are working assertively to resolve. Business fundamentals remain strong. We continue to compete effectively against the many banks in our core markets, the first phase of our core systems conversion was a success, overall credit quality remains very strong, and the Company remains well-capitalized even after the provision recorded this quarter.”
Total assets at June 30, 2012 grew to $5.0 billion, an increase of 7.8 percent from the prior quarter and 59.6 percent from June 30, 2011.