Net Income of $14.7 million, EPS of $0.16
Quarterly Dividend of $0.135
BOSTON, April 24, 2024 (GLOBE NEWSWIRE) -- Brookline Bancorp, Inc. (NASDAQ: BRKL) (the "Company") today announced net income of $14.7 million, or $0.16 per basic and diluted share, for the first quarter of 2024, compared to net income of $22.9 million, or $0.26 per basic and diluted share, for the fourth quarter of 2023, and net income of $7.6 million, or $0.09 per basic and diluted share, for the first quarter of 2023.
Paul Perrault, Chairman and CEO, commented on the Company's first quarter earnings, "Our Company, along with the rest of the banking industry, continues to face margin pressure. As we look ahead to the second quarter we are optimistic about the overall economic outlook in our markets. We remain active in our communities and our dedicated team of bankers continues to provide our customers with the exceptional service they have come to appreciate."
BALANCE SHEET
Total assets at March 31, 2024 were $11.5 billion, representing an increase of $160.5 million from $11.4 billion at December 31, 2023, and an increase of $20.2 million from March 31, 2023. At March 31, 2024, total loans and leases were $9.7 billion, representing an increase of $13.5 million from December 31, 2023, and an increase of $408.1 million from March 31, 2023.
Total investment securities at March 31, 2024 decreased $50.8 million to $865.8 million from $916.6 million at December 31, 2023, and decreased $201.2 million from $1.1 billion at March 31, 2023. Total cash and cash equivalents at March 31, 2024 increased $168.9 million to $301.9 million from $133.0 million at December 31, 2023, and decreased $184.4 million from $486.3 million at March 31, 2023. As of March 31, 2024, total investment securities and total cash and cash equivalents represented 10.1 percent of total assets compared to 9.2 percent and 13.5 percent as of December 31, 2023 and March 31, 2023, respectively.
Total deposits at March 31, 2024 increased $170.5 million to $8.7 billion from $8.5 billion at December 31, 2023, consisting of an $80.8 million increase in customer deposits and an $89.8 million increase in brokered deposits, and increased $262.2 million from $8.5 billion at March 31, 2023, driven by growth in customer deposits.
Total borrowed funds at March 31, 2024 decreased $14.8 million to $1.4 billion from December 31, 2023, and decreased $268.2 million from $1.6 billion at March 31, 2023.
The ratio of stockholders' equity to total assets was 10.35 percent at March 31, 2024, compared to 10.53 percent at December 31, 2023, and 10.11 percent at March 31, 2023. The ratio of tangible stockholders' equity to tangible assets (non-GAAP) was 8.25 percent at March 31, 2024, as compared to 8.39 percent at December 31, 2023, and 7.94 percent at March 31, 2023. Tangible book value per common share (non-GAAP) decreased $0.03 from $10.50 at December 31, 2023 to $10.47 at March 31, 2024, and increased $0.39 from $10.08 at March 31, 2023.
NET INTEREST INCOME
Net interest income decreased $2.0 million to $81.6 million during the first quarter of 2024 from $83.6 million for the quarter ended December 31, 2023. The net interest margin decreased 9 basis points to 3.06 percent for the three months ended March 31, 2024 from 3.15 percent for the three months ended December 31, 2023, primarily driven by higher funding costs.
NON-INTEREST INCOME
Total non-interest income for the quarter ended March 31, 2024 decreased $1.7 million to $6.3 million from $8.0 million for the quarter ended December 31, 2023. The decrease was primarily driven by a decline of $1.1 million in other non-interest income which was primarily driven by the mark to market on interest rate swaps on participated loans of $0.8 million, a $0.4 million decline in gain on sales of loans and leases, and a $0.3 million decline in loan derivative income, net, partially offset by an increase of $0.3 million in loan fees.
PROVISION FOR CREDIT LOSSES
The Company recorded a provision for credit losses of $7.4 million for the quarter ended March 31, 2024, compared to $3.8 million for the quarter ended December 31, 2023. The increase in provision was largely driven by an increase in expected losses in the Company's equipment finance businesses.
Total net charge-offs for the first quarter of 2024 were $8.8 million compared to $7.1 million in the fourth quarter of 2023. The $8.8 million in net charge-offs were largely driven by $4.7 million in commercial loans, the majority of which was previously specifically reserved for, and $3.5 million in equipment financing. The equipment financing charge-offs were largely small dollar specialty vehicle charge-offs. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis increased to 36 basis points for the first quarter of 2024 from 30 basis points for the fourth quarter of 2023.
The allowance for loan and lease losses represented 1.24 percent of total loans and leases at March 31, 2024, compared to 1.22 percent at December 31, 2023, and 1.31 percent at March 31, 2023.
ASSET QUALITY
The ratio of nonperforming loans and leases to total loans and leases was 0.42 percent at March 31, 2024, a decrease from 0.45 percent at December 31, 2023. Total nonaccrual loans and leases decreased $3.0 million to $40.7 million at March 31, 2024 from $43.6 million at December 31, 2023. The ratio of nonperforming assets to total assets was 0.37 percent at March 31, 2024, a decrease from 0.40 percent at December 31, 2023. Total nonperforming assets decreased $2.8 million to $42.5 million at March 31, 2024 from $45.3 million at December 31, 2023.
NON-INTEREST EXPENSE
Non-interest expense for the quarter ended March 31, 2024 increased $1.8 million to $61.0 million from $59.2 million for the quarter ended December 31, 2023. The increase was primarily driven by increases of $1.2 million in compensation and employee benefits expense, $0.8 million in advertising and marketing expense, $0.6 million in occupancy expense, and $0.5 million in professional services expense, partially offset by decreases of $0.9 million in other non-interest expense, $0.3 million in amortization of identified intangible assets expense, and $0.2 million in equipment and data processing expense.
PROVISION FOR INCOME TAXES
The effective tax rate was 24.7 percent for the three months ended March 31, 2024 compared to 19.9 percent for the three months ended December 31, 2023 and 12.8 percent for the three months ended March 31, 2023.
RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY
The annualized return on average assets decreased to 0.51 percent during the first quarter 2024 from 0.81 percent for the fourth quarter of 2023.
The annualized return on average stockholders' equity decreased to 4.88 percent during the first quarter of 2024 from 7.82 percent for the fourth quarter of 2023. The annualized return on average tangible stockholders' equity decreased to 6.26 percent for the first quarter of 2024 from 10.12 percent for the fourth quarter of 2023.
DIVIDEND DECLARED
The Company's Board of Directors approved a dividend of $0.135 per share for the quarter ended March 31, 2024. The dividend will be paid on May 24, 2024 to stockholders of record on May 10, 2024.
CONFERENCE CALL
The Company will conduct a conference call/webcast at 1:30 PM Eastern Time on Thursday, April 25, 2024 to discuss the results for the quarter, business highlights and outlook. A copy of the Earnings Presentation is available on the Company's website, www.brooklinebancorp.com. To listen to the call and view the Company's Earnings Presentation, please join the call via https://events.q4inc.com/attendee/249109629. To listen to the call without access to the slides, interested parties may dial 833-470-1428 (United States) or 404-975-4839 (internationally) and ask for the Brookline Bancorp, Inc. conference call (Access Code 923783). A recorded playback of the call will be available for one week following the call on the Company's website under "Investor Relations" or by dialing 866-813-9403 (United States) or 929-458-6194 (internationally) and entering the passcode: 815015.
ABOUT BROOKLINE BANCORP, INC.
Brookline Bancorp, Inc., a bank holding company with $11.5 billion in assets and branch locations in Massachusetts, Rhode Island, and the Lower Hudson Valley of New York State, is headquartered in Boston, Massachusetts and operates as the holding company for Brookline Bank, Bank Rhode Island, and PCSB Bank (the "banks"). The Company provides commercial and retail banking services, cash management and investment services to customers throughout Central New England and the Lower Hudson Valley of New York State. More information about Brookline Bancorp, Inc. and its banks can be found at the following websites: www.brooklinebank.com, www.bankri.com and www.pcsb.com.
FORWARD-LOOKING STATEMENTS
Certain statements contained in this press release that are not historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We may also make forward-looking statements in other documents we file with the Securities and Exchange Commission ("SEC"), in our annual reports to shareholders, in press releases and other written materials, and in oral statements made by our officers, directors or employees. You can identify forward looking statements by the use of the words "believe," "expect," "anticipate," "intend," "estimate," "assume," "outlook," "will," "should," and other expressions that predict or indicate future events and trends and which do not relate to historical matters, including statements regarding the Company's business, credit quality, financial condition, liquidity and results of operations. Forward-looking statements may differ, possibly materially, from what is included in this press release due to factors and future developments that are uncertain and beyond the scope of the Company's control. These include, but are not limited to, changes in interest rates; general economic conditions (including inflation and concerns about liquidity) on a national basis or in the local markets in which the Company operates; turbulence in the capital and debt markets; competitive pressures from other financial institutions; changes in consumer behavior due to changing political, business and economic conditions, or legislative or regulatory initiatives; changes in the value of securities and other assets in the Company's investment portfolio; increases in loan and lease default and charge-off rates; the adequacy of allowances for loan and lease losses; decreases in deposit levels that necessitate increases in borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity incidents, fraud, natural disasters, and future pandemics; changes in regulation; the possibility that future credit losses may be higher than currently expected due to changes in economic assumptions and adverse economic developments; the risk that goodwill and intangibles recorded in the Company's financial statements will become impaired; and changes in assumptions used in making such forward-looking statements. Forward-looking statements involve risks and uncertainties which are difficult to predict. The Company's actual results could differ materially from those projected in the forward-looking statements as a result of, among others, the risks outlined in the Company's Annual Report on Form 10-K, as updated by its Quarterly Reports on Form 10-Q and other filings submitted to the SEC. The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.
BASIS OF PRESENTATION
The Company's consolidated financial statements have been prepared in conformity with generally accepted accounting principles ("GAAP") as set forth by the Financial Accounting Standards Board in its Accounting Standards Codification and through the rules and interpretive releases of the SEC under the authority of federal securities laws. Certain amounts previously reported have been reclassified to conform to the current period's presentation.
NON-GAAP FINANCIAL MEASURES
The Company uses certain non-GAAP financial measures, such as operating earnings after tax, operating earnings per common share, operating return on average assets, operating return on average tangible assets, operating return on average stockholders' equity, operating return on average tangible stockholders' equity, tangible book value per common share, tangible stockholders' equity to tangible assets, return on average tangible assets (annualized) and return on average tangible stockholders' equity (annualized). These non-GAAP financial measures provide information for investors to effectively analyze financial trends of ongoing business activities, and to enhance comparability with peers across the financial services sector. A detailed reconciliation table of the Company's GAAP to the non-GAAP measures is attached.
INVESTOR RELATIONS:
| Contact: | Carl M. Carlson Brookline Bancorp, Inc. Co-President and Chief Financial and Strategy Officer (617) 425-5331 carl.carlson@brkl.com |
| BROOKLINE BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||
| Selected Financial Highlights (Unaudited) | ||||||||||||||||
| At and for the Three Months Ended | ||||||||||||||||
| March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | ||||||||||||
| (Dollars In Thousands Except per Share Data) | ||||||||||||||||
| Earnings Data: | ||||||||||||||||
| Net interest income | $ | 81,588 | $ | 83,555 | $ | 84,070 | $ | 86,037 | $ | 86,049 | ||||||
| Provision for credit losses on loans | 7,423 | 3,851 | 2,947 | 5,726 | 25,344 | |||||||||||
| Provision (credit) for credit losses on investments | (44 | ) | (76 | ) | 84 | 133 | 198 | |||||||||
| Non-interest income | 6,284 | 8,027 | 5,508 | 5,462 | 12,937 | |||||||||||
| Non-interest expense | 61,014 | 59,244 | 57,679 | 57,825 | 64,776 | |||||||||||
| Income before provision for income taxes | 19,479 | 28,563 | 28,868 | 27,815 | 8,668 | |||||||||||
| Net income | 14,665 | 22,888 | 22,701 | 21,850 | 7,560 | |||||||||||
| Performance Ratios: | ||||||||||||||||
| Net interest margin (1) | 3.06 | % | 3.15 | % | 3.18 | % | 3.26 | % | 3.36 | % | ||||||
| Interest-rate spread (1) | 2.21 | % | 2.39 | % | 2.45 | % | 2.51 | % | 2.66 | % | ||||||
| Return on average assets (annualized) | 0.51 | % | 0.81 | % | 0.81 | % | 0.78 | % | 0.27 | % | ||||||
| Return on average tangible assets (annualized) (non-GAAP) | 0.53 | % | 0.83 | % | 0.83 | % | 0.79 | % | 0.28 | % | ||||||
| Return on average stockholders' equity (annualized) | 4.88 | % | 7.82 | % | 7.78 | % | 7.44 | % | 2.61 | % | ||||||
| Return on average tangible stockholders' equity (annualized) (non-GAAP) | 6.26 | % | 10.12 | % | 10.09 | % | 9.67 | % | 3.43 | % | ||||||
| Efficiency ratio (2) | 69.44 | % | 64.69 | % | 64.39 | % | 63.20 | % | 65.44 | % | ||||||
| Per Common Share Data: | ||||||||||||||||
| Net income - Basic | $ | 0.16 | $ | 0.26 | $ | 0.26 | $ | 0.25 | $ | 0.09 | ||||||
| Net income - Diluted | 0.16 | 0.26 | 0.26 | 0.25 | 0.09 | |||||||||||
| Cash dividends declared | 0.135 | 0.135 | 0.135 | 0.135 | 0.135 | |||||||||||
| Book value per share (end of period) | 13.43 | 13.48 | 13.03 | 13.11 | 13.14 | |||||||||||
| Tangible book value per share (end of period) (non-GAAP) | 10.47 | 10.50 | 10.02 | 10.07 | 10.08 | |||||||||||
| Stock price (end of period) | 9.96 | 10.91 | 9.11 | 8.74 | 10.50 | |||||||||||
| Balance Sheet: | ||||||||||||||||
| Total assets | $ | 11,542,731 | $ | 11,382,256 | $ | 11,180,555 | $ | 11,206,078 | $ | 11,522,485 | ||||||
| Total loans and leases | 9,655,086 | 9,641,589 | 9,380,782 | 9,340,799 | 9,246,965 | |||||||||||
| Total deposits | 8,718,653 | 8,548,125 | 8,566,013 | 8,517,013 | 8,456,462 | |||||||||||
| Total stockholders' equity | 1,194,231 | 1,198,644 | 1,157,871 | 1,162,308 | 1,165,066 | |||||||||||
| Asset Quality: | ||||||||||||||||
| Nonperforming assets | $ | 42,489 | $ | 45,324 | $ | 51,540 | $ | 46,925 | $ | 28,962 | ||||||
| Nonperforming assets as a percentage of total assets | 0.37 | % | 0.40 | % | 0.46 | % | 0.42 | % | 0.25 | % | ||||||
| Allowance for loan and lease losses | $ | 120,124 | $ | 117,522 | $ | 119,081 | $ | 125,817 | $ | 120,865 | ||||||
| Allowance for loan and lease losses as a percentage of total loans and leases | 1.24 | % | 1.22 | % | 1.27 | % | 1.35 | % | 1.31 | % | ||||||
| Net loan and lease charge-offs | $ | 8,781 | $ | 7,141 | $ | 10,974 | $ | 1,097 | $ | 451 | ||||||
| Net loan and lease charge-offs as a percentage of average loans and leases (annualized) | 0.36 | % | 0.30 | % | 0.47 | % | 0.05 | % | 0.02 | % | ||||||
| Capital Ratios: | ||||||||||||||||
| Stockholders' equity to total assets | 10.35 | % | 10.53 | % | 10.36 | % | 10.37 | % | 10.11 | % | ||||||
| Tangible stockholders' equity to tangible assets (non-GAAP) | 8.25 | % | 8.39 | % | 8.16 | % | 8.16 | % | 7.94 | % | ||||||
| (1) Calculated on a fully tax-equivalent basis. | ||||||||||||||||
| (2) Calculated as non-interest expense as a percentage of net interest income plus non-interest income. | ||||||||||||||||
| BROOKLINE BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||
| Consolidated Balance Sheets (Unaudited) | |||||||||||||||
| March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | |||||||||||
| ASSETS | (In Thousands Except Share Data) | ||||||||||||||
| Cash and due from banks | $ | 45,708 | $ | 34,514 | $ | 33,506 | $ | 44,323 | $ | 30,782 | |||||
| Short-term investments | 256,178 | 98,513 | 127,495 | 180,109 | 455,538 | ||||||||||
| Total cash and cash equivalents | 301,886 | 133,027 | 161,001 | 224,432 | 486,320 | ||||||||||
| Investment securities available-for-sale | 865,798 | 916,601 | 880,412 | 910,210 | 1,067,032 | ||||||||||
| Total investment securities | 865,798 | 916,601 | 880,412 | 910,210 | 1,067,032 | ||||||||||
| Allowance for investment security losses | (398 | ) | (441 | ) | (517 | ) | (433 | ) | (301 | ) | |||||
| Net investment securities | 865,400 | 916,160 | 879,895 | 909,777 | 1,066,731 | ||||||||||
| Loans and leases held-for-sale | 6,717 | - | - | - | - | ||||||||||
| Loans and leases: | |||||||||||||||
| Commercial real estate loans | 5,755,239 | 5,764,529 | 5,669,768 | 5,670,771 | 5,610,414 | ||||||||||
| Commercial loans and leases | 2,416,904 | 2,399,668 | 2,241,375 | 2,193,027 | 2,147,149 | ||||||||||
| Consumer loans | 1,482,943 | 1,477,392 | 1,469,639 | 1,477,001 | 1,489,402 | ||||||||||
| Total loans and leases | 9,655,086 | 9,641,589 | 9,380,782 | 9,340,799 | 9,246,965 | ||||||||||
| Allowance for loan and lease losses | (120,124 | ) | (117,522 | ) | (119,081 | ) | (125,817 | ) | (120,865 | ) | |||||
| Net loans and leases | 9,534,962 | 9,524,067 | 9,261,701 | 9,214,982 | 9,126,100 | ||||||||||
| Restricted equity securities | 74,709 | 77,595 | 65,460 | 71,421 | 86,230 | ||||||||||
| Premises and equipment, net of accumulated depreciation | 89,707 | 89,853 | 90,476 | 90,685 | 87,799 | ||||||||||
| Right-of-use asset operating leases | 33,133 | 30,863 | 31,619 | 31,774 | 30,067 | ||||||||||
| Deferred tax asset | 60,484 | 56,952 | 74,491 | 77,704 | 75,028 | ||||||||||
| Goodwill | 241,222 | 241,222 | 241,222 | 241,222 | 241,222 | ||||||||||
| Identified intangible assets, net of accumulated amortization | 22,499 | 24,207 | 26,172 | 28,126 | 30,080 | ||||||||||
| Other real estate owned and repossessed assets | 1,817 | 1,694 | 299 | 602 | 508 | ||||||||||
| Other assets | 310,195 | 286,616 | 348,219 | 315,353 | 292,400 | ||||||||||
| Total assets | $ | 11,542,731 | $ | 11,382,256 | $ | 11,180,555 | $ | 11,206,078 | $ | 11,522,485 | |||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||
| Deposits: | |||||||||||||||
| Demand checking accounts | $ | 1,629,371 | $ | 1,678,406 | $ | 1,745,137 | $ | 1,843,516 | $ | 1,899,370 | |||||
| NOW accounts | 654,748 | 661,863 | 647,476 | 699,119 | 757,411 | ||||||||||
| Savings accounts | 1,727,893 | 1,669,018 | 1,625,804 | 1,464,054 | 1,268,375 | ||||||||||
| Money market accounts | 2,065,569 | 2,082,810 | 2,161,359 | 2,166,570 | 2,185,971 | ||||||||||
| Certificate of deposit accounts | 1,670,147 | 1,574,855 | 1,491,844 | 1,410,905 | 1,362,970 | ||||||||||
| Brokered deposit accounts | 970,925 | 881,173 | 894,393 | 932,849 | 982,365 | ||||||||||
| Total deposits | 8,718,653 | 8,548,125 | 8,566,013 | 8,517,013 | 8,456,462 | ||||||||||
| Borrowed funds: | |||||||||||||||
| Advances from the FHLB | 1,150,153 | 1,223,226 | 899,304 | 1,043,381 | 1,458,457 | ||||||||||
| Subordinated debentures and notes | 84,223 | 84,188 | 84,152 | 84,116 | 84,080 | ||||||||||
| Other borrowed funds | 127,505 | 69,256 | 151,612 | 98,773 | 87,565 | ||||||||||
| Total borrowed funds | 1,361,881 | 1,376,670 | 1,135,068 | 1,226,270 | 1,630,102 | ||||||||||
| Operating lease liabilities | 34,235 | 31,998 | 32,807 | 33,021 | 31,373 | ||||||||||
| Mortgagors' escrow accounts | 16,245 | 17,239 | 12,578 | 17,207 | 17,080 | ||||||||||
| Reserve for unfunded credits | 15,807 | 19,767 | 21,497 | 22,789 | 23,112 | ||||||||||
| Accrued expenses and other liabilities | 201,679 | 189,813 | 254,721 | 227,470 | 199,290 | ||||||||||
| Total liabilities | 10,348,500 | 10,183,612 | 10,022,684 | 10,043,770 | 10,357,419 | ||||||||||
| Stockholders' equity: | |||||||||||||||
| Common stock, $0.01 par value; 200,000,000 shares authorized; 96,998,075 shares issued, 96,998,075 shares issued, 96,998,075 shares issued, 96,998,075 shares issued, and 96,998,075 shares issued, respectively | 970 | 970 | 970 | 970 | 970 | ||||||||||
| Additional paid-in capital | 903,726 | 902,659 | 901,376 | 905,084 | 904,174 | ||||||||||
| Retained earnings | 441,285 | 438,722 | 427,937 | 417,328 | 407,528 | ||||||||||
| Accumulated other comprehensive income | (60,841 | ) | (52,798 | ) | (81,541 | ) | (66,156 | ) | (52,688 | ) | |||||
| Treasury stock, at cost; | |||||||||||||||
| 7,354,399, 7,354,399, 7,350,981, 7,734,891, and 7,734,891 shares, respectively | (90,909 | ) | (90,909 | ) | (90,871 | ) | (94,918 | ) | (94,918 | ) | |||||
| Total stockholders' equity | 1,194,231 | 1,198,644 | 1,157,871 | 1,162,308 | 1,165,066 | ||||||||||
| Total liabilities and stockholders' equity | $ | 11,542,731 | $ | 11,382,256 | $ | 11,180,555 | $ | 11,206,078 | $ | 11,522,485 | |||||
| BROOKLINE BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||
| Consolidated Statements of Income (Unaudited) | |||||||||||||||
| Three Months Ended | |||||||||||||||
| March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | |||||||||||
| (In Thousands Except Share Data) | |||||||||||||||
| Interest and dividend income: | |||||||||||||||
| Loans and leases | $ | 145,265 | $ | 142,948 | $ | 136,561 | $ | 132,299 | $ | 121,931 | |||||
| Debt securities | 6,878 | 6,945 | 6,799 | 8,034 | 7,870 | ||||||||||
| Restricted equity securities | 1,492 | 1,333 | 1,310 | 1,673 | 1,255 | ||||||||||
| Short-term investments | 1,824 | 1,093 | 2,390 | 3,351 | 1,495 | ||||||||||
| Total interest and dividend income | 155,459 | 152,319 | 147,060 | 145,357 | 132,551 | ||||||||||
| Interest expense: | |||||||||||||||
| Deposits | 56,884 | 54,034 | 49,116 | 43,147 | 29,368 | ||||||||||
| Borrowed funds | 16,987 | 14,730 | 13,874 | 16,173 | 17,134 | ||||||||||
| Total interest expense | 73,871 | 68,764 | 62,990 | 59,320 | 46,502 | ||||||||||
| Net interest income | 81,588 | 83,555 | 84,070 | 86,037 | 86,049 | ||||||||||
| Provision for credit losses on loans | 7,423 | 3,851 | 2,947 | 5,726 | 25,344 | ||||||||||
| Provision (credit) for credit losses on investments | (44 | ) | (76 | ) | 84 | 133 | 198 | ||||||||
| Net interest income after provision for credit losses | 74,209 | 79,780 | 81,039 | 80,178 | 60,507 | ||||||||||
| Non-interest income: | |||||||||||||||
| Deposit fees | 2,897 | 3,064 | 3,024 | 2,866 | 2,657 | ||||||||||
| Loan fees | 789 | 515 | 639 | 491 | 391 | ||||||||||
| Loan level derivative income, net | 437 | 778 | 376 | 363 | 2,373 | ||||||||||
| Gain on investment securities, net | - | - | - | 3 | 1,701 | ||||||||||
| Gain on sales of loans and leases held-for-sale | - | 410 | 225 | 308 | 1,638 | ||||||||||
| Other | 2,161 | 3,260 | 1,244 | 1,431 | 4,177 | ||||||||||
| Total non-interest income | 6,284 | 8,027 | 5,508 | 5,462 | 12,937 | ||||||||||
| Non-interest expense: | |||||||||||||||
| Compensation and employee benefits | 36,629 | 35,401 | 33,491 | 33,438 | 36,565 | ||||||||||
| Occupancy | 5,769 | 5,127 | 4,983 | 4,870 | 5,223 | ||||||||||
| Equipment and data processing | 7,031 | 7,245 | 6,766 | 6,531 | 6,462 | ||||||||||
| Professional services | 1,900 | 1,442 | 2,368 | 1,986 | 1,430 | ||||||||||
| FDIC insurance | 1,884 | 1,839 | 2,152 | 2,609 | 1,244 | ||||||||||
| Advertising and marketing | 1,574 | 758 | 1,174 | 1,382 | 1,410 | ||||||||||
| Amortization of identified intangible assets | 1,708 | 1,965 | 1,955 | 1,954 | 1,966 | ||||||||||
| Merger and acquisition expense | - | - | - | 1,002 | 6,409 | ||||||||||
| Other | 4,519 | 5,467 | 4,790 | 4,053 | 4,067 | ||||||||||
| Total non-interest expense | 61,014 | 59,244 | 57,679 | 57,825 | 64,776 | ||||||||||
| Income before provision for income taxes | 19,479 | 28,563 | 28,868 | 27,815 | 8,668 | ||||||||||
| Provision for income taxes | 4,814 | 5,675 | 6,167 | 5,965 | 1,108 | ||||||||||
| Net income | $ | 14,665 | $ | 22,888 | $ | 22,701 | $ | 21,850 | $ | 7,560 | |||||
| Earnings per common share: | |||||||||||||||
| Basic | $ | 0.16 | $ | 0.26 | $ | 0.26 | $ | 0.25 | $ | 0.09 | |||||
| Diluted | $ | 0.16 | $ | 0.26 | $ | 0.26 | $ | 0.25 | $ | 0.09 | |||||
| Weighted average common shares outstanding during the period: | |||||||||||||||
| Basic | 88,894,577 | 88,867,159 | 88,795,270 | 88,665,135 | 86,563,641 | ||||||||||
| Diluted | 89,181,508 | 89,035,505 | 88,971,210 | 88,926,543 | 86,837,806 | ||||||||||
| Dividends paid per common share | $ | 0.135 | $ | 0.135 | $ | 0.135 | $ | 0.135 | $ | 0.135 | |||||
| BROOKLINE BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||
| Asset Quality Analysis (Unaudited) | |||||||||||||||
| At and for the Three Months Ended | |||||||||||||||
| March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | |||||||||||
| (Dollars in Thousands) | |||||||||||||||
| NONPERFORMING ASSETS: | |||||||||||||||
| Loans and leases accounted for on a nonaccrual basis: | |||||||||||||||
| Commercial real estate mortgage | $ | 18,394 | $ | 19,608 | $ | 23,263 | $ | 8,737 | $ | 4,589 | |||||
| Multi-family mortgage | - | - | 1,318 | - | - | ||||||||||
| Construction | - | - | 2,316 | 3,828 | 3,883 | ||||||||||
| Total commercial real estate loans | 18,394 | 19,608 | 26,897 | 12,565 | 8,472 | ||||||||||
| Commercial | 3,096 | 3,886 | 5,406 | 16,023 | 5,495 | ||||||||||
| Equipment financing | 13,668 | 14,984 | 13,974 | 12,809 | 9,908 | ||||||||||
| Condominium association | - | - | - | - | 51 | ||||||||||
| Total commercial loans and leases | 16,764 | 18,870 | 19,380 | 28,832 | 15,454 | ||||||||||
| Residential mortgage | 4,563 | 4,292 | 4,249 | 4,343 | 3,449 | ||||||||||
| Home equity | 950 | 860 | 713 | 583 | 1,079 | ||||||||||
| Other consumer | 1 | - | 2 | - | - | ||||||||||
| Total consumer loans | 5,514 | 5,152 | 4,964 | 4,926 | 4,528 | ||||||||||
| Total nonaccrual loans and leases | 40,672 | 43,630 | 51,241 | 46,323 | 28,454 | ||||||||||
| Other real estate owned | 780 | 780 | - | - | - | ||||||||||
| Other repossessed assets | 1,037 | 914 | 299 | 602 | 508 | ||||||||||
| Total nonperforming assets | $ | 42,489 | $ | 45,324 | $ | 51,540 | $ | 46,925 | $ | 28,962 | |||||
| Loans and leases past due greater than 90 days and still accruing | $ | 363 | $ | 228 | $ | 1,175 | $ | 490 | $ | 726 | |||||
| Nonperforming loans and leases as a percentage of total loans and leases | 0.42 | % | 0.45 | % | 0.55 | % | 0.50 | % | 0.31 | % | |||||
| Nonperforming assets as a percentage of total assets | 0.37 | % | 0.40 | % | 0.46 | % | 0.42 | % | 0.25 | % | |||||
| PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES: | |||||||||||||||
| Allowance for loan and lease losses at beginning of period | $ | 117,522 | $ | 119,081 | $ | 125,817 | $ | 120,865 | $ | 98,482 | |||||
| Charge-offs | (5,390 | ) | (7,722 | ) | (10,978 | ) | (1,690 | ) | (845 | ) | |||||
| Recoveries | 309 | 581 | 4 | 593 | 394 | ||||||||||
| Net charge-offs | (5,081 | ) | (7,141 | ) | (10,974 | ) | (1,097 | ) | (451 | ) | |||||
| Provision for loan and lease losses excluding unfunded commitments * | 7,683 | 5,582 | 4,238 | 6,049 | 22,834 | ||||||||||
| Allowance for loan and lease losses at end of period | $ | 120,124 | $ | 117,522 | $ | 119,081 | $ | 125,817 | $ | 120,865 | |||||
| Allowance for loan and lease losses as a percentage of total loans and leases | 1.24 | % | 1.22 | % | 1.27 | % | 1.35 | % | 1.31 | % | |||||
| NET CHARGE-OFFS: | |||||||||||||||
| Commercial real estate loans | $ | 606 | $ | 1,087 | $ | (3 | ) | $ | (6 | ) | $ | (6 | ) | ||
| Commercial loans and leases ** | 8,179 | 6,061 | 10,958 | 1,108 | 457 | ||||||||||
| Consumer loans | (4 | ) | (7 | ) | 19 | (5 | ) | - | |||||||
| Total net charge-offs | $ | 8,781 | $ | 7,141 | $ | 10,974 | $ | 1,097 | $ | 451 | |||||
| Net loan and lease charge-offs as a percentage of average loans and leases (annualized) | 0.36 | % | 0.30 | % | 0.47 | % | 0.05 | % | 0.02 | % | |||||
| *Provision for loan and lease losses does not include (credit) provision of $(0.3 million), $(1.7 million), $(1.3 million), $(0.3 million), and $2.5 million for credit losses on unfunded commitments during the three months ended March 31, 2024, December 31, 2023, September 30, 2023, June 30, 2023, and March 31, 2023, respectively. | |||||||||||||||
| ** The balance at March 31, 2024 includes a $3.7 million charge-off on a letter of credit which impacted the provision. | |||||||||||||||
| BROOKLINE BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||||||||||
| Average Yields / Costs (Unaudited) | |||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||
| March 31, 2024 | December 31, 2023 | March 31, 2023 | |||||||||||||||||||||
| Average Balance | Interest (1) | Average Yield/ Cost | Average Balance | Interest (1) | Average Yield/ Cost | Average Balance | Interest (1) | Average Yield/ Cost | |||||||||||||||
| (Dollars in Thousands) | |||||||||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||||
| Investments: | |||||||||||||||||||||||
| Debt securities (2) | $ | 893,228 | $ | 6,927 | 3.10 | % | $ | 876,350 | $ | 6,986 | 3.19 | % | $ | 1,029,068 | $ | 7,974 | 3.10 | % | |||||
| Restricted equity securities (2) | 76,335 | 1,493 | 7.82 | % | 67,567 | 1,334 | 7.90 | % | 76,911 | 1,255 | 6.53 | % | |||||||||||
| Short-term investments | 130,768 | 1,824 | 5.58 | % | 85,790 | 1,093 | 5.09 | % | 147,654 | 1,495 | 4.05 | % | |||||||||||
| Total investments | 1,100,331 | 10,244 | 3.72 | % | 1,029,707 | 9,413 | 3.66 | % | 1,253,633 | 10,724 | 3.42 | % | |||||||||||
| Loans and Leases: | |||||||||||||||||||||||
| Commercial real estate loans (3) | 5,761,735 | 81,049 | 5.56 | % | 5,727,930 | 81,653 | 5.58 | % | 5,579,977 | 67,667 | 4.85 | % | |||||||||||
| Commercial loans (3) | 1,026,467 | 17,507 | 6.75 | % | 969,603 | 16,296 | 6.58 | % | 892,522 | 14,017 | 6.28 | % | |||||||||||
| Equipment financing (3) | 1,374,426 | 26,895 | 7.83 | % | 1,347,589 | 25,211 | 7.48 | % | 1,226,717 | 21,213 | 6.92 | % | |||||||||||
| Consumer loans (3) | 1,482,819 | 19,978 | 5.40 | % | 1,475,580 | 19,888 | 5.37 | % | 1,452,072 | 19,070 | 5.28 | % | |||||||||||
| Total loans and leases | 9,645,447 | 145,429 | 6.03 | % | 9,520,702 | 143,048 | 6.01 | % | 9,151,288 | 121,967 | 5.33 | % | |||||||||||
| Total interest-earning assets | 10,745,778 | 155,673 | 5.79 | % | 10,550,409 | 152,461 | 5.78 | % | 10,404,921 | 132,691 | 5.10 | % | |||||||||||
| Non-interest-earning assets | 671,407 | 721,532 | 726,166 | ||||||||||||||||||||
| Total assets | $ | 11,417,185 | $ | 11,271,941 | $ | 11,131,087 | |||||||||||||||||
| Liabilities and Stockholders' Equity: | |||||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||
| Deposits: | |||||||||||||||||||||||
| NOW accounts | $ | 671,914 | 1,261 | 0.75 | % | $ | 657,134 | 1,146 | 0.69 | % | $ | 810,333 | 901 | 0.45 | % | ||||||||
| Savings accounts | 1,694,220 | 11,352 | 2.69 | % | 1,658,144 | 10,684 | 2.56 | % | 1,160,003 | 2,514 | 0.88 | % | |||||||||||
| Money market accounts | 2,076,303 | 15,954 | 3.09 | % | 2,140,225 | 16,239 | 3.01 | % | 2,366,235 | 12,140 | 2.08 | % | |||||||||||
| Certificates of deposit | 1,624,118 | 16,672 | 4.13 | % | 1,530,772 | 14,517 | 3.76 | % | 1,346,761 | 7,456 | 2.25 | % | |||||||||||
| Brokered deposit accounts | 896,784 | 11,645 | 5.22 | % | 880,604 | 11,448 | 5.16 | % | 534,527 | 6,357 | 4.82 | % | |||||||||||
| Total interest-bearing deposits | 6,963,339 | 56,884 | 3.29 | % | 6,866,879 | 54,034 | 3.12 | % | 6,217,859 | 29,368 | 1.92 | % | |||||||||||
| Borrowings | |||||||||||||||||||||||
| Advances from the FHLB | 1,164,534 | 14,633 | 4.97 | % | 965,846 | 11,943 | 4.84 | % | 1,264,523 | 14,531 | 4.60 | % | |||||||||||
| Subordinated debentures and notes | 84,206 | 1,377 | 6.54 | % | 84,170 | 1,381 | 6.56 | % | 84,062 | 1,354 | 6.44 | % | |||||||||||
| Other borrowed funds | 93,060 | 977 | 4.22 | % | 136,566 | 1,406 | 4.09 | % | 158,499 | 1,249 | 3.20 | % | |||||||||||
| Total borrowings | 1,341,800 | 16,987 | 5.01 | % | 1,186,582 | 14,730 | 4.86 | % | 1,507,084 | 17,134 | 4.55 | % | |||||||||||
| Total interest-bearing liabilities | 8,305,139 | 73,871 | 3.58 | % | 8,053,461 | 68,764 | 3.39 | % | 7,724,943 | 46,502 | 2.44 | % | |||||||||||
| Non-interest-bearing liabilities: | |||||||||||||||||||||||
| Demand checking accounts | 1,631,472 | 1,723,849 | 1,930,162 | ||||||||||||||||||||
| Other non-interest-bearing liabilities | 278,670 | 323,855 | 316,347 | ||||||||||||||||||||
| Total liabilities | 10,215,281 | 10,101,165 | 9,971,452 | ||||||||||||||||||||
| Stockholders' equity | 1,201,904 | 1,170,776 | 1,159,635 | ||||||||||||||||||||
| Total liabilities and equity | $ | 11,417,185 | $ | 11,271,941 | $ | 11,131,087 | |||||||||||||||||
| Net interest income (tax-equivalent basis) /Interest-rate spread (4) | 81,802 | 2.21 | % | 83,697 | 2.39 | % | 86,189 | 2.66 | % | ||||||||||||||
| Less adjustment of tax-exempt income | 214 | 142 | 140 | ||||||||||||||||||||
| Net interest income | $ | 81,588 | $ | 83,555 | $ | 86,049 | |||||||||||||||||
| Net interest margin (5) | 3.06 | % | 3.15 | % | 3.36 | % | |||||||||||||||||
| (1) Tax-exempt income on debt securities, equity securities and revenue bonds included in commercial real estate loans is included on a tax-equivalent basis. | |||||||||||||||||||||||
| (2) Average balances include unrealized gains (losses) on investment securities. Dividend payments may not be consistent and average yield on equity securities may vary from month to month. | |||||||||||||||||||||||
| (3) Loans on nonaccrual status are included in the average balances. | |||||||||||||||||||||||
| (4) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities. | |||||||||||||||||||||||
| (5) Net interest margin represents net interest income (tax-equivalent basis) divided by average interest-earning assets on an actual/actual basis. | |||||||||||||||||||||||
| BROOKLINE BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||
| Non-GAAP Financial Information (Unaudited) | |||||||||||||||
| Three Months Ended March 31, | |||||||||||||||
| 2024 | 2023 | ||||||||||||||
| Reconciliation Table - Non-GAAP Financial Information | (Dollars in Thousands Except Share Data) | ||||||||||||||
| Reported Pretax Income | $ | 19,479 | $ | 8,668 | |||||||||||
| Less: | |||||||||||||||
| Security gains | - | 1,701 | |||||||||||||
| Add: | |||||||||||||||
| Day 1 PCSB CECL provision | - | 16,744 | |||||||||||||
| Merger and acquisition expense | - | 6,409 | |||||||||||||
| Operating Pretax Income | $ | 19,479 | $ | 30,120 | |||||||||||
| Effective tax rate | 24.7 | % | 22.7 | % | |||||||||||
| Provision for income taxes | 4,814 | 6,837 | |||||||||||||
| Operating earnings after tax | $ | 14,665 | $ | 23,283 | |||||||||||
| Operating earnings per common share: | |||||||||||||||
| Basic | $ | 0.16 | $ | 0.27 | |||||||||||
| Diluted | $ | 0.16 | $ | 0.27 | |||||||||||
| Weighted average common shares outstanding during the period: | |||||||||||||||
| Basic | 88,894,577 | 86,563,641 | |||||||||||||
| Diluted | 89,181,508 | 86,837,806 | |||||||||||||
| Return on average assets * | 0.51 | % | 0.27 | % | |||||||||||
| Less: | |||||||||||||||
| Security gains (after-tax) * | - | % | 0.05 | % | |||||||||||
| Add: | |||||||||||||||
| Day 1 PCSB CECL provision (after-tax) * | - | % | 0.47 | % | |||||||||||
| Merger and acquisition expense (after-tax) * | - | % | 0.18 | % | |||||||||||
| Operating return on average assets * | 0.51 | % | 0.87 | % | |||||||||||
| Return on average tangible assets * | 0.53 | % | 0.28 | % | |||||||||||
| Less: | |||||||||||||||
| Security gains (after-tax) * | - | % | 0.05 | % | |||||||||||
| Add: | |||||||||||||||
| Day 1 PCSB CECL provision (after-tax) * | - | % | 0.48 | % | |||||||||||
| Merger and acquisition expense (after-tax) * | - | % | 0.18 | % | |||||||||||
| Operating return on average tangible assets * | 0.53 | % | 0.89 | % | |||||||||||
| Return on average stockholders' equity * | 4.88 | % | 2.61 | % | |||||||||||
| Less: | |||||||||||||||
| Security gains (after-tax) * | - | % | 0.45 | % | |||||||||||
| Add: | |||||||||||||||
| Day 1 PCSB CECL provision (after-tax) * | - | % | 4.46 | % | |||||||||||
| Merger and acquisition expense (after-tax) * | - | % | 1.71 | % | |||||||||||
| Operating return on average stockholders' equity * | 4.88 | % | 8.33 | % | |||||||||||
| Return on average tangible stockholders' equity * | 6.26 | % | 3.43 | % | |||||||||||
| Less: | |||||||||||||||
| Security gains (after-tax) * | - | % | 0.60 | % | |||||||||||
| Add: | |||||||||||||||
| Day 1 PCSB CECL provision (after-tax) * | - | % | 5.87 | % | |||||||||||
| Merger and acquisition expense (after-tax) * | - | % | 2.25 | % | |||||||||||
| Operating return on average tangible stockholders' equity * | 6.26 | % | 10.95 | % | |||||||||||
| * Ratios at and for the three months ended are annualized. | |||||||||||||||
| At and for the Three Months Ended | |||||||||||||||
| March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | |||||||||||
| (Dollars in Thousands) | |||||||||||||||
| Net income, as reported | $ | 14,665 | $ | 22,888 | $ | 22,701 | $ | 21,850 | $ | 7,560 | |||||
| Average total assets | $ | 11,417,185 | $ | 11,271,941 | $ | 11,180,635 | $ | 11,272,672 | $ | 11,131,087 | |||||
| Less: Average goodwill and average identified intangible assets, net | 264,536 | 266,225 | 268,199 | 270,147 | 278,135 | ||||||||||
| Average tangible assets | $ | 11,152,649 | $ | 11,005,716 | $ | 10,912,436 | $ | 11,002,525 | $ | 10,852,952 | |||||
| Return on average tangible assets (annualized) | 0.53 | % | 0.83 | % | 0.83 | % | 0.79 | % | 0.28 | % | |||||
| Average total stockholders' equity | $ | 1,201,904 | $ | 1,170,776 | $ | 1,167,727 | $ | 1,174,167 | $ | 1,159,635 | |||||
| Less: Average goodwill and average identified intangible assets, net | 264,536 | 266,225 | 268,199 | 270,147 | 278,135 | ||||||||||
| Average tangible stockholders' equity | $ | 937,368 | $ | 904,551 | $ | 899,528 | $ | 904,020 | $ | 881,500 | |||||
| Return on average tangible stockholders' equity (annualized) | 6.26 | % | 10.12 | % | 10.09 | % | 9.67 | % | 3.43 | % | |||||
| Total stockholders' equity | $ | 1,194,231 | $ | 1,198,644 | $ | 1,157,871 | $ | 1,162,308 | $ | 1,165,066 | |||||
| Less: | |||||||||||||||
| Goodwill | 241,222 | 241,222 | 241,222 | 241,222 | 241,222 | ||||||||||
| Identified intangible assets, net | 22,499 | 24,207 | 26,172 | 28,126 | 30,080 | ||||||||||
| Tangible stockholders' equity | $ | 930,510 | $ | 933,215 | $ | 890,477 | $ | 892,960 | $ | 893,764 | |||||
| Total assets | $ | 11,542,731 | $ | 11,382,256 | $ | 11,180,555 | $ | 11,206,078 | $ | 11,522,485 | |||||
| Less: | |||||||||||||||
| Goodwill | 241,222 | 241,222 | 241,222 | 241,222 | 241,222 | ||||||||||
| Identified intangible assets, net | 22,499 | 24,207 | 26,172 | 28,126 | 30,080 | ||||||||||
| Tangible assets | $ | 11,279,010 | $ | 11,116,827 | $ | 10,913,161 | $ | 10,936,730 | $ | 11,251,183 | |||||
| Tangible stockholders' equity to tangible assets | 8.25 | % | 8.39 | % | 8.16 | % | 8.16 | % | 7.94 | % | |||||
| Tangible stockholders' equity | $ | 930,510 | $ | 933,215 | $ | 890,477 | $ | 892,960 | $ | 893,764 | |||||
| Number of common shares issued | 96,998,075 | 96,998,075 | 96,998,075 | 96,998,075 | 96,998,075 | ||||||||||
| Less: | |||||||||||||||
| Treasury shares | 7,354,399 | 7,354,399 | 7,350,981 | 7,734,891 | 7,734,891 | ||||||||||
| Unvested restricted shares | 749,099 | 749,099 | 780,859 | 598,049 | 598,049 | ||||||||||
| Number of common shares outstanding | 88,894,577 | 88,894,577 | 88,866,235 | 88,665,135 | 88,665,135 | ||||||||||
| Tangible book value per common share | $ | 10.47 | $ | 10.50 | $ | 10.02 | $ | 10.07 | $ | 10.08 | |||||
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