Brookline Bank reported a slight improvement in net income for the third quarter versus the previous quarter, faring better than most banks amid industry-wide margin compression thanks to the higher cost of funding and lack of growth in loan yields.

The bank’s net income improved quarter-on-quarter to $22.7 million, $0.26 per basic and diluted share, from $21.8 million a quarter ago, or $0.25 per basic and diluted share. But the third quarter profits were lower than the $30.1 million, or $0.39 per basic and diluted share, in the third quarter of 2022.

“I am pleased to report on our company’s performance in the third quarter. We continue to make progress in all of our markets. Our colleagues are keeping us well positioned to continue taking advantage of opportunities as they present themselves,” Paul Perrault, Brookline Bank’s chairman and CEO, said in a statement.

Higher funding costs weighed down net interest income, leading to a decline to $84.1 million from the $86 million last quarter. Net interest margin also went down to 3.18 percent from 3.26 percent in the second quarter.

Total loans slightly went up by $9.4 billion from $9.3 billion the last quarter primarily due to higher commercial loans and leases.

Total deposits were higher in the quarter, ending at $8.57 billion from $8.52 billion a quarter ago. This is due to an $87.5 million increase in customer deposits but partially offset by a decrease in higher-costing brokered deposits.

Total assets decreased to $11.18 billion from $11.21 billion last quarter.