Press Release

Brookline Bancorp Announces First Quarter Results

Company Release - 4/24/2024

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, 2023June 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, 2024December 31, 2023March 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 $6,9273.10% $876,350 $6,9863.19% $1,029,068 $7,9743.10%
Restricted equity securities (2) 76,335  1,4937.82%  67,567  1,3347.90%  76,911  1,2556.53%
Short-term investments 130,768  1,8245.58%  85,790  1,0935.09%  147,654  1,4954.05%
Total investments 1,100,331  10,2443.72%  1,029,707  9,4133.66%  1,253,633  10,7243.42%
Loans and Leases:                       
Commercial real estate loans (3) 5,761,735  81,0495.56%  5,727,930  81,6535.58%  5,579,977  67,6674.85%
Commercial loans (3) 1,026,467  17,5076.75%  969,603  16,2966.58%  892,522  14,0176.28%
Equipment financing (3) 1,374,426  26,8957.83%  1,347,589  25,2117.48%  1,226,717  21,2136.92%
Consumer loans (3) 1,482,819  19,9785.40%  1,475,580  19,8885.37%  1,452,072  19,0705.28%
Total loans and leases 9,645,447  145,4296.03%  9,520,702  143,0486.01%  9,151,288  121,9675.33%
Total interest-earning assets 10,745,778  155,6735.79%  10,550,409  152,4615.78%  10,404,921  132,6915.10%
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  1,2610.75% $657,134  1,1460.69% $810,333  9010.45%
Savings accounts 1,694,220  11,3522.69%  1,658,144  10,6842.56%  1,160,003  2,5140.88%
Money market accounts 2,076,303  15,9543.09%  2,140,225  16,2393.01%  2,366,235  12,1402.08%
Certificates of deposit 1,624,118  16,6724.13%  1,530,772  14,5173.76%  1,346,761  7,4562.25%
Brokered deposit accounts 896,784  11,6455.22%  880,604  11,4485.16%  534,527  6,3574.82%
Total interest-bearing deposits 6,963,339  56,8843.29%  6,866,879  54,0343.12%  6,217,859  29,3681.92%
Borrowings                       
Advances from the FHLB 1,164,534  14,6334.97%  965,846  11,9434.84%  1,264,523  14,5314.60%
Subordinated debentures and notes 84,206  1,3776.54%  84,170  1,3816.56%  84,062  1,3546.44%
Other borrowed funds 93,060  9774.22%  136,566  1,4064.09%  158,499  1,2493.20%
Total borrowings 1,341,800  16,9875.01%  1,186,582  14,7304.86%  1,507,084  17,1344.55%
Total interest-bearing liabilities 8,305,139  73,8713.58%  8,053,461  68,7643.39%  7,724,943  46,5022.44%
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)    81,8022.21%     83,6972.39%     86,1892.66%
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,
    20242023
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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Source: Brookline Bancorp, Inc.