Brookline Bancorp reported second quarter earnings of approximately $22 million or $0.25 per share.
Customer deposits increased by $59 million and net interest margin improved by 10 basis points to 3.32%.
Merger expenses were $439,000 and largely non-tax deductible, contributing to a higher effective tax rate.
Net interest income increased by $2.9 million to $88.7 million, and fee income was slightly higher at $6 million, bringing total revenues to $94.7 million, up 3% from Q1 and 10% year-over-year.
Noninterest expense, excluding merger charges, decreased by $1.3 million from Q1 to $57.7 million, with marketing expenses increasing by $503,000.
Provision for credit losses was $7 million, $1 million higher than Q1, with total net charge-offs of $5.1 million and increased reserves for Boston office market credits.
Reserve coverage increased to 132 basis points of total loans.
The Board approved maintaining the quarterly dividend at $0.135 per share.
The loan portfolio contracted by $61 million intentionally, with reductions in commercial real estate and specialty vehicles, while commercial and consumer loans grew.
Agency gross revenues increased $61 million or 25%, net agent revenues up 21%.
Domestic commercial revenues increased $24 million or 46%, with average fee per file increasing 25% to $16,900.
Domestic residential fee per file slightly declined to $2,900 from $3,000 last year.
Employee cost ratio improved to 30% from 31%, other operating expense ratio improved to 25% from 26%.
Net cash provided by operations improved by $32 million compared to last year.
On an adjusted basis, second quarter net income was $38 million or $1.34 per diluted share compared to $25 million or $0.91 per diluted share last year.
Real estate solutions segment revenues improved $20 million or 22%, with adjusted pretax income 15% higher.
Stewart reported second quarter net income of $32 million or $1.13 per diluted share based on revenues of $722 million.
Title pretax income improved by $16 million or 48%, with adjusted pretax income $52 million, 35% better than last year.
Title segment operating revenues improved $96 million or 19%, driven by both direct and agency title operations.
Total cash and investments were approximately $390 million in excess of statutory premium reserve requirements.
Total stockholders' equity at June 30 was approximately $1.4 billion with a book value of $51 per share.
Total title loss expense increased slightly to $22 million, but title loss ratio improved to 3.6% from 4.2% last year.
Dafinchi