>>Paul A. Perrault, President and Chief Executive Officer of Brookline Bancorp, Inc., stated: “pending its completion, it is important to note that this review has not identified any information that would undermine the Company’s strong asset quality metrics, the reported value of its investment portfolio, or its favorable capital position. <<
But has the Company identified any undermining of the Company's accounting procedures and internal controls?
Once they tell you there'll be no impairment you can bet your last dollar there are problems a-plenty. My bet is they acquired a boatload of bad loans from that RI deal that were never disclosed. Area has of the highest unemployment rates in the country and these guys were carrying a minimal bad debt reserve. I suspect brookline got taken.
The reason for the delay is the R.I. deal and intergrating it into their own books. R.I. has been a lot worse off than Ma. with regards to R.E. and always has been historically. It's not news. R.I. compared to Ma. has always been a Blue Collar State. An image that R.I. has sought to change dramtically in the last two decades with a fair amount of success with the exception of some pockets of really depressed real estate like South Providence (which resembles the Bronx) and Central Falls, which recently I think went into receivership and was formally the Cocaine Cartel capital of the Northeast. Newport is looking better than it's ever looked since the Great Gatsby and so is most of the waterfront property, of which Rhode Island has a lot of and is highly coveted by the newly rich. It's been a long time now since Newport was a seedy sailor's town in the 50's and 60's and almost a Ghost town in the 70's. The place has been transformed. And Brown University, U.R.I. and the medical field too has expanded into R.I. from Ma. .
Brookline Bank bought R.I. bank as the exact right moment in time before someone else scooped it up from under them. The best time to expand is during a recession. And the deeper the recession, the better for the purposes of expansion.Thats when all the low hanging fruit is aquired.