• Brookline Bancorp Announces Third Quarter Results

    ソース: Nasdaq GlobeNewswire / 25 10 2023 16:05:04   America/New_York

    BOSTON, Oct. 25, 2023 (GLOBE NEWSWIRE) -- Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced net income of $22.7 million, or $0.26 per basic and diluted share, for the third quarter of 2023, compared to net income of $21.9 million, or $0.25 per basic and diluted share, for the second quarter of 2023, and net income of $30.1 million, or $0.39 per basic and diluted share, for the third quarter of 2022.

    Paul Perrault, Chairman and CEO commented on the quarter, “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.”

    BALANCE SHEET

    Total assets at September 30, 2023 decreased $25.5 million to $11.18 billion from $11.21 billion at June 30, 2023, and increased $2.5 billion from $8.7 billion at September 30, 2022. At September 30, 2023, total loans and leases were $9.4 billion, representing an increase of $40.0 million from June 30, 2023, and an increase of $2.0 billion from September 30, 2022, primarily driven by the acquisition of PCSB Financial Corporation ("PCSB").

    Total investment securities at September 30, 2023 decreased $29.8 million to $880.4 million from $910.2 million at June 30, 2023, and increased $204.7 million from $675.7 million at September 30, 2022. Total cash and cash equivalents at September 30, 2023 decreased $63.4 million to $161.0 million from $224.4 million at June 30, 2023, and increased $48.5 million from $112.5 million at September 30, 2022. As of September 30, 2023, total investment securities and total cash and cash equivalents represented 9.3 percent of total assets compared to 10.1 percent and 9.1 percent as of June 30, 2023 and September 30, 2022, respectively.

    Total deposits at September 30, 2023 increased $49.0 million to $8.57 billion from $8.52 billion at June 30, 2023, consisting of an $87.5 million increase in customer deposits, partially offset by a $38.5 million decrease in brokered deposits, and increased $1.8 billion from $6.74 billion at September 30, 2022, primarily driven by the completion of the PCSB acquisition.

    Total borrowed funds at September 30, 2023 decreased $91.2 million to $1.1 billion from $1.2 billion at June 30, 2023, and increased $376.3 million from $758.8 million at September 30, 2022.

    The ratio of stockholders’ equity to total assets was 10.36 percent at September 30, 2023, compared to 10.37 percent at June 30, 2023, and 11.08 percent at September 30, 2022. The ratio of tangible stockholders’ equity to tangible assets (non-GAAP) was 8.16 percent at both September 30, 2023 and June 30, 2023, and 9.39 percent at September 30, 2022. Tangible book value per common share (non-GAAP) decreased $0.05 from $10.07 at June 30, 2023 to $10.02 at September 30, 2023, compared to $10.43 at September 30, 2022.

    NET INTEREST INCOME

    Net interest income decreased $2.0 million to $84.1 million during the third quarter of 2023 from $86.0 million for the quarter ended June 30, 2023. The net interest margin decreased 8 basis points to 3.18 percent for the three months ended September 30, 2023 from 3.26 percent for the three months ended June 30, 2023, primarily driven by higher funding costs.

    NON-INTEREST INCOME

    Total non-interest income for the quarter ended September 30, 2023 was $5.5 million and flat compared to the quarter ended June 30, 2023.

    PROVISION FOR CREDIT LOSSES

    The Company recorded a provision for credit losses of $2.9 million for the quarter ended September 30, 2023, compared to $5.7 million for the quarter ended June 30, 2023.

    Total net charge-offs for the third quarter of 2023 were $11.0 million compared to $1.1 million in the second quarter of 2023. The increase was primarily driven by $10.2 million in net charge-offs on two commercial loans, the majority of which was previously reserved for. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis increased to 47 basis points for the third quarter of 2023 from 5 basis points for the second quarter of 2023.

    The allowance for loan and lease losses represented 1.27 percent of total loans and leases at September 30, 2023, compared to 1.35 percent at June 30, 2023, and 1.27 percent at September 30, 2022, driven by a decline in individually assessed reserves due to the aforementioned charge-offs.

    ASSET QUALITY

    The ratio of nonperforming loans and leases to total loans and leases was 0.55 percent at September 30, 2023, an increase from 0.50 percent at June 30, 2023. Total nonaccrual loans and leases increased $4.9 million to $51.2 million at September 30, 2023 from $46.3 million at June 30, 2023. The ratio of nonperforming assets to total assets was 0.46 percent at September 30, 2023, an increase from 0.42 percent at June 30, 2023. Total nonperforming assets increased $4.6 million to $51.5 million at September 30, 2023 from $46.9 million at June 30, 2023. The increase in nonperforming assets was primarily driven by a $14.8 million commercial real estate relationship becoming non-accrual during the quarter, partially offset by two commercial relationships of which $10.2 million was charged off during the quarter.

    NON-INTEREST EXPENSE

    Non-interest expense for the quarter ended September 30, 2023 decreased $0.1 million to $57.7 million from $57.8 million for the quarter ended June 30, 2023. The decrease was primarily driven by a decrease of $1.0 million in merger and acquisition expense and a decrease of $0.5 million in FDIC insurance expense, partially offset by an increase of $0.7 million in other non-interest expense and an increase of $0.4 million in professional services expense.

    PROVISION FOR INCOME TAXES

    The effective tax rate was 21.4 percent and 20.3 percent for the three and nine months ended September 30, 2023 compared to 21.4 percent for the three months ended June 30, 2023 and 18.7 percent and 22.9 percent for the three and nine months ended September 30, 2022.

    RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

    The annualized return on average assets increased to 0.81 percent during the third quarter 2023 from 0.78 percent for the second quarter of 2023.

    The annualized return on average stockholders' equity increased to 7.78 percent during the third quarter of 2023 from 7.44 percent for the second quarter of 2023. The annualized return on average tangible stockholders’ equity increased to 10.09 percent for the third quarter of 2023 from 9.67 percent for the second quarter of 2023.

    DIVIDEND DECLARED

    The Company’s Board of Directors approved a dividend of $0.135 per share for the quarter ended September 30, 2023. The dividend will be paid on November 24, 2023 to stockholders of record on November 10, 2023.

    CONFERENCE CALL

    The Company will conduct a conference call/webcast at 1:30 PM Eastern Time on Thursday, October 26, 2023 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/328004214. 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 454769). 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 204-525-0658 (internationally) and entering the passcode: 509267.

    ABOUT BROOKLINE BANCORP, INC.

    Brookline Bancorp, Inc., a bank holding company with $11.2 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, the Company’s ability to achieve the synergies and value creation contemplated by the acquisition of PCSB; turbulence in the capital and debt markets; changes in interest rates; competitive pressures from other financial institutions; general economic conditions (including inflation and concerns about liquidity) on a national basis or in the local markets in which the Company operates; 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, 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 Officer
     (617) 425-5331
     ccarlson@brkl.com


    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Selected Financial Highlights (Unaudited)
     
      At and for the Three Months Ended
      September 30,
    2023    		June 30,
    2023    		March 31,
    2023    		December 31,
    2022    		September 30,
    2022
      (Dollars In Thousands Except per Share Data)
    Earnings Data:      
    Net interest income $84,070 $86,037 $86,049 $80,030 $78,026 
    Provision (credit) for credit losses  2,947  5,726  25,344  5,671  2,845 
    Provision (credit) for investment losses  84  133  198  54  (10)
    Non-interest income  5,508  5,462  12,937  9,056  6,834 
    Non-interest expense  57,679  57,825  64,776  47,225  44,959 
    Income before provision for income taxes  28,868  27,815  8,668  36,136  37,066 
    Net income  22,701  21,850  7,560  29,695  30,149 
           
    Performance Ratios:      
    Net interest margin (1)  3.18% 3.26% 3.36% 3.81% 3.80%
    Interest-rate spread (1)  2.45% 2.51% 2.66% 3.35% 3.58%
    Return on average assets (annualized)  0.81% 0.78% 0.27% 1.34% 1.40%
    Return on average tangible assets (annualized) (non-GAAP)  0.83% 0.79% 0.28% 1.37% 1.43%
    Return on average stockholders' equity (annualized)  7.78% 7.44% 2.61% 12.09% 12.29%
    Return on average tangible stockholders' equity (annualized) (non-GAAP)  10.09% 9.67% 3.43% 14.48% 14.72%
    Efficiency ratio (2)  64.39% 63.20% 65.44% 53.01% 52.98%
           
    Per Common Share Data:      
    Net income — Basic $0.26 $0.25 $0.09 $0.39 $0.39 
    Net income — Diluted  0.26  0.25  0.09  0.39  0.39 
    Cash dividends declared  0.135  0.135  0.135  0.135  0.135 
    Book value per share (end of period)  13.03  13.11  13.14  12.91  12.54 
    Tangible book value per share (end of period) (non-GAAP)  10.02  10.07  10.08  10.80  10.43 
    Stock price (end of period)  9.11  8.74  10.50  14.15  11.65 
     
    Balance Sheet:      
    Total assets $11,180,555 $11,206,078 $11,522,485 $9,185,836 $8,695,708 
    Total loans and leases  9,380,782  9,340,799  9,246,965  7,644,388  7,421,304 
    Total deposits  8,566,013  8,517,013  8,456,462  6,522,146  6,735,605 
    Total stockholders’ equity  1,157,871  1,162,308  1,165,066  992,125  963,618 
           
    Asset Quality:      
    Nonperforming assets $51,540 $46,925 $28,962 $15,302 $18,312 
    Nonperforming assets as a percentage of total assets  0.46% 0.42% 0.25% 0.17% 0.21%
    Allowance for loan and lease losses $119,081 $125,817 $120,865 $98,482 $94,169 
    Allowance for loan and lease losses as a percentage of total loans and leases  1.27% 1.35% 1.31% 1.29% 1.27%
    Net loan and lease charge-offs (recoveries) $10,974 $1,097 $451 $310 $(179)
    Net loan and lease charge-offs as a percentage of average loans and leases (annualized)  0.47% 0.05% 0.02% 0.02% (0.01)%
           
    Capital Ratios:      
    Stockholders’ equity to total assets  10.36% 10.37% 10.11% 10.80% 11.08%
    Tangible stockholders’ equity to tangible assets (non-GAAP)  8.16% 8.16% 7.94% 9.20% 9.39%
           
    (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)
     
      September 30,
    2023    		June 30,
    2023    		March 31,
    2023    		December 31,
    2022    		September 30,
    2022
    ASSETS (In Thousands Except Share Data)
    Cash and due from banks $33,506 $44,323 $30,782 $191,767 $65,638 
    Short-term investments  127,495  180,109  455,538  191,192  46,873 
    Total cash and cash equivalents  161,001  224,432  486,320  382,959  112,511 
    Investment securities available-for-sale  880,412  910,210  1,067,032  656,766  675,692 
    Total investment securities  880,412  910,210  1,067,032  656,766  675,692 
    Allowance for investment security losses  (517) (433) (301) (102) (48)
    Net investment securities  879,895  909,777  1,066,731  656,664  675,644 
    Loans and leases:      
    Commercial real estate loans  5,669,768  5,670,771  5,610,414  4,404,148  4,269,512 
    Commercial loans and leases  2,241,375  2,193,027  2,147,149  2,016,499  1,933,645 
    Consumer loans  1,469,639  1,477,001  1,489,402  1,223,741  1,218,147 
    Total loans and leases  9,380,782  9,340,799  9,246,965  7,644,388  7,421,304 
    Allowance for loan and lease losses  (119,081) (125,817) (120,865) (98,482) (94,169)
    Net loans and leases  9,261,701  9,214,982  9,126,100  7,545,906  7,327,135 
    Restricted equity securities  65,460  71,421  86,230  71,307  44,760 
    Premises and equipment, net of accumulated depreciation  90,476  90,685  87,799  71,391  69,912 
    Right-of-use asset operating leases  31,619  31,774  30,067  19,484  18,614 
    Deferred tax asset  74,491  77,704  75,028  52,237  56,894 
    Goodwill  241,222  241,222  241,222  160,427  160,427 
    Identified intangible assets, net of accumulated amortization  26,172  28,126  30,080  1,781  1,902 
    Other real estate owned and repossessed assets  299  602  508  408  591 
    Other assets  348,219  315,353  292,400  223,272  227,318 
    Total assets $11,180,555 $11,206,078 $11,522,485 $9,185,836 $8,695,708 
    LIABILITIES AND STOCKHOLDERS' EQUITY      
    Deposits:      
    Demand checking accounts $1,745,137 $1,843,516 $1,899,370 $1,802,518 $1,848,562 
    NOW accounts  647,476  699,119  757,411  544,118  597,870 
    Savings accounts  1,625,804  1,464,054  1,268,375  762,271  824,789 
    Money market accounts  2,161,359  2,166,570  2,185,971  2,174,952  2,405,680 
    Certificate of deposit accounts  1,491,844  1,410,905  1,362,970  928,143  924,771 
    Brokered deposit accounts  894,393  932,849  982,365  310,144  133,933 
    Total deposits  8,566,013  8,517,013  8,456,462  6,522,146  6,735,605 
    Borrowed funds:      
    Advances from the FHLBB  899,304  1,043,381  1,458,457  1,237,823  557,895 
    Subordinated debentures and notes  84,152  84,116  84,080  84,044  84,008 
    Other borrowed funds  151,612  98,773  87,565  110,785  116,865 
    Total borrowed funds  1,135,068  1,226,270  1,630,102  1,432,652  758,768 
    Operating lease liabilities  32,807  33,021  31,373  19,484  18,614 
    Mortgagors’ escrow accounts  12,578  17,207  17,080  5,607  5,785 
    Reserve for unfunded credits  21,497  22,789  23,112  20,602  19,555 
    Accrued expenses and other liabilities  254,721  227,470  199,290  193,220  193,763 
    Total liabilities  10,022,684  10,043,770  10,357,419  8,193,711  7,732,090 
    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, 85,177,172 shares issued, and 85,177,172 shares issued, respectively  970  970  970  852  852 
    Additional paid-in capital  901,376  905,084  904,174  736,074  735,119 
    Retained earnings, partially restricted  427,937  417,328  407,528  412,019  392,779 
    Accumulated other comprehensive income  (81,541) (66,156) (52,688) (61,947) (70,227)
    Treasury stock, at cost;      
    7,350,981, 7,734,891, 7,734,891, 7,731,445, and 7,730,945 shares, respectively  (90,871) (94,918) (94,918) (94,873) (94,866)
    Unallocated common stock held by the Employee Stock Ownership Plan;      
    0, 0, 0, 0, and 4,833 shares, respectively  —  —  —  —  (39)
    Total stockholders' equity  1,157,871  1,162,308  1,165,066  992,125  963,618 
        Total liabilities and stockholders' equity $11,180,555 $11,206,078 $11,522,485 $9,185,836 $8,695,708 

     

    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Consolidated Statements of Income (Unaudited)
      Three Months Ended
      September 30,
    2023    		June 30,
    2023    		March 31,
    2023    		December 31,
    2022    		September 30,
    2022
      (In Thousands Except Share Data)
    Interest and dividend income:      
    Loans and leases $136,561 $132,299 $121,931 $98,386 $84,375 
    Debt securities  6,799  8,034  7,870  3,497  3,337 
    Restricted equity securities  1,310  1,673  1,255  766  467 
    Short-term investments  2,390  3,351  1,495  754  464 
    Total interest and dividend income  147,060  145,357  132,551  103,403  88,643 
    Interest expense:      
    Deposits  49,116  43,147  29,368  14,185  7,354 
    Borrowed funds  13,874  16,173  17,134  9,188  3,263 
    Total interest expense  62,990  59,320  46,502  23,373  10,617 
    Net interest income  84,070  86,037  86,049  80,030  78,026 
    Provision for credit losses  2,947  5,726  25,344  5,671  2,845 
    Provision (credit) for investment losses  84  133  198  54  (10)
    Net interest income after provision for credit losses  81,039  80,178  60,507  74,305  75,191 
    Non-interest income:      
    Deposit fees  3,024  2,866  2,657  2,916  2,759 
    Loan fees  639  491  391  446  349 
    Loan level derivative income, net  376  363  2,373  670  1,275 
    Gain on investment securities, net  —  3  1,701  321  — 
    Gain on sales of loans and leases held-for-sale  225  308  1,638  2,612  889 
    Other  1,244  1,431  4,177  2,091  1,562 
    Total non-interest income  5,508  5,462  12,937  9,056  6,834 
    Non-interest expense:      
    Compensation and employee benefits  33,491  33,438  36,565  29,525  28,306 
    Occupancy  4,983  4,870  5,223  4,005  3,906 
    Equipment and data processing  6,766  6,531  6,462  5,758  5,066 
    Professional services  2,368  1,986  1,430  1,546  1,069 
    FDIC insurance  2,152  2,609  1,244  1,001  709 
    Advertising and marketing  1,174  1,382  1,410  1,052  1,337 
    Amortization of identified intangible assets  1,955  1,954  1,966  120  120 
    Merger and acquisition expense  —  1,002  6,409  641  1,073 
    Other  4,790  4,053  4,067  3,577  3,373 
    Total non-interest expense  57,679  57,825  64,776  47,225  44,959 
    Income before provision for income taxes  28,868  27,815  8,668  36,136  37,066 
    Provision for income taxes  6,167  5,965  1,108  6,441  6,917 
    Net income $22,701 $21,850 $7,560 $29,695 $30,149 
    Earnings per common share:      
    Basic $0.26 $0.25 $0.09 $0.39 $0.39 
    Diluted $0.26 $0.25 $0.09 $0.39 $0.39 
    Weighted average common shares outstanding during the period:      
    Basic  88,795,270  88,665,135  86,563,641  76,841,655  76,779,038 
    Diluted  88,971,210  88,926,543  86,837,806  77,065,076  77,007,971 
    Dividends paid per common share $0.135 $0.135 $0.135 $0.135 $0.130 

     

    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Consolidated Statements of Income (Unaudited)
     
      Nine Months Ended September 30,
       2023  2022 
      (In Thousands Except Share Data)
    Interest and dividend income:   
    Loans and leases $390,791 $230,383 
    Debt securities  22,703  9,582 
    Restricted equity securities  4,238  1,132 
    Short-term investments  7,236  686 
    Total interest and dividend income  424,968  241,783 
    Interest expense:   
    Deposits  121,631  15,407 
    Borrowed funds  47,181  6,635 
    Total interest expense  168,812  22,042 
    Net interest income  256,156  219,741 
    Provision for credit losses  34,017  2,854 
    Provision for investment losses  415  48 
    Net interest income after provision for credit losses  221,724  216,839 
    Non-interest income:   
    Deposit Fees  8,547  8,003 
    Loan Fees  1,521  1,762 
    Loan level derivative income, net  3,112  3,576 
    Gain on investment securities, net  1,704  — 
    Gain on sales of loans and leases held-for-sale  2,171  1,524 
    Other  6,852  4,426 
    Total non-interest income  23,907  19,291 
    Non-interest expense:   
    Compensation and employee benefits  103,494  83,962 
    Occupancy  15,076  11,997 
    Equipment and data processing  19,759  15,075 
    Professional services  5,784  3,514 
    FDIC insurance  6,005  2,176 
    Advertising and marketing  3,966  3,928 
    Amortization of identified intangible assets  5,875  374 
    Merger and acquisition expense  7,411  1,608 
    Other  12,910  9,683 
    Total non-interest expense  180,280  132,317 
    Income before provision for income taxes  65,351  103,813 
    Provision for income taxes  13,240  23,764 
    Net income $52,111 $80,049 
    Earnings per common share:   
    Basic $0.59 $1.04 
    Diluted $0.59 $1.04 
    Weighted average common shares outstanding during the period: 
    Basic  88,016,190  77,159,356 
    Diluted  88,253,361  77,448,290 
    Dividends paid per common share $0.405 $0.385 

     

    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Asset Quality Analysis (Unaudited)
      At and for the Three Months Ended
      September 30,
    2023    		June 30,
    2023    		March 31,
    2023    		December 31,
    2022    		September 30,
    2022
      (Dollars in Thousands)
    NONPERFORMING ASSETS:      
    Loans and leases accounted for on a nonaccrual basis:      
    Commercial real estate mortgage $23,263 $8,737 $4,589 $607 $3,136 
    Multi-family mortgage  1,318  —  —  —  — 
    Construction  2,316  3,828  3,883  707  — 
    Total commercial real estate loans  26,897  12,565  8,472  1,314  3,136 
           
    Commercial  5,406  16,023  5,495  464  618 
    Equipment financing  13,974  12,809  9,908  9,653  10,544 
    Condominium association  —  —  51  58  64 
    Total commercial loans and leases  19,380  28,832  15,454  10,175  11,226 
           
    Residential mortgage  4,249  4,343  3,449  2,680  2,741 
    Home equity  713  583  1,079  723  616 
    Other consumer  2  —  —  2  2 
    Total consumer loans  4,964  4,926  4,528  3,405  3,359 
           
       Total nonaccrual loans and leases  51,241  46,323  28,454  14,894  17,721 
           
    Other repossessed assets  299  602  508  408  591 
    Total nonperforming assets $51,540 $46,925 $28,962 $15,302 $18,312 
           
    Loans and leases past due greater than 90 days and still accruing $1,175 $490 $726 $33 $9,583 
           
    Nonperforming loans and leases as a percentage of total loans and leases  0.55% 0.50% 0.31% 0.19% 0.24%
    Nonperforming assets as a percentage of total assets  0.46% 0.42% 0.25% 0.17% 0.21%
           
    PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:          
    Allowance for loan and lease losses at beginning of period $125,817 $120,865 $98,482 $94,169 $93,188 
    Charge-offs  (10,978) (1,690) (845) (658) (598)
    Recoveries  4  593  394  348  777 
       Net (charge-offs) recoveries  (10,974) (1,097) (451) (310) 179 
    Provision (credit) for loan and lease losses
    excluding unfunded commitments *    		  4,238  6,049  22,834  4,623  802 
    Allowance for loan and lease losses at end of period $119,081 $125,817 $120,865 $98,482 $94,169 
           
    Allowance for loan and lease losses as a percentage of total loans and leases  1.27% 1.35% 1.31% 1.29% 1.27%
           
    NET CHARGE-OFFS (RECOVERIES):      
    Commercial real estate loans $(3)$(6)$(6)$(6)$(6)
    Commercial loans and leases  10,958  1,108  457  320  (179)
    Consumer loans  19  (5) —  (4) 6 
    Total net charge-offs (recoveries) $10,974 $1,097 $451 $310 $(179)
           
    Net loan and lease charge-offs as a percentage of average loans and leases (annualized)  0.47% 0.05% 0.02% 0.02% (0.01)%
           
    *Provision for loan and lease losses does not include (credit) provision of $(1.3 million), $(0.3) million, $2.5 million, $1.0 million, and $2.0 million for credit losses on unfunded commitments during the three months ended September 30, 2023, June 30, 2023, March 31, 2023, December 31, 2022, and September 30, 2022, respectively.     

     

    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Average Yields / Costs (Unaudited)
      Three Months Ended
      September 30, 2023June 30, 2023September 30, 2022
      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) $887,612$6,8403.08%$1,000,440$8,0913.23%$714,226$3,3371.87%
    Marketable and restricted equity securities (2)  67,824 1,3107.73% 77,364 1,6738.65% 36,525 4675.12%
    Short-term investments  172,483 2,3905.54% 229,474 3,3515.84% 66,257 4642.80%
    Total investments  1,127,919 10,5403.74% 1,307,278 13,1154.01% 817,008 4,2682.09%
    Loans and Leases:          
    Commercial real estate loans (3)  5,667,373 78,7505.44% 5,640,491 79,5825.58% 4,239,155 44,7294.13%
    Commercial loans (3)  939,492 15,2956.38% 913,732 13,5025.85% 731,095 8,4924.55%
    Equipment financing (3)  1,280,033 23,3317.29% 1,253,199 22,3577.14% 1,157,829 19,0426.58%
    Consumer loans (3)  1,471,985 19,2375.21% 1,482,799 16,9034.56% 1,206,968 12,1654.02%
    Total loans and leases  9,358,883 136,6135.84% 9,290,221 132,3445.70% 7,335,047 84,4284.60%
    Total interest-earning assets  10,486,802 147,1535.61% 10,597,499 145,4595.49% 8,152,055 88,6964.35%
    Non-interest-earning assets  693,833   675,173   434,365  
    Total assets $11,180,635  $11,272,672  $8,586,420  
               
    Liabilities and Stockholders' Equity:          
    Interest-bearing liabilities:          
    Deposits:          
    NOW accounts $681,929 1,1590.67%$735,001 1,0690.58%$607,210 5790.38%
    Savings accounts  1,557,911 8,8592.26% 1,374,337 5,9171.73% 881,988 6640.30%
    Money market accounts  2,177,528 15,7852.88% 2,140,522 13,9892.62% 2,423,920 4,0380.66%
    Certificates of deposit  1,444,269 12,1283.33% 1,390,913 10,0212.89% 964,112 1,8030.74%
    Brokered deposit accounts  882,351 11,1855.03% 975,700 12,1515.00% 117,058 2700.92%
    Total interest-bearing deposits  6,743,988 49,1162.89% 6,616,473 43,1472.62% 4,994,288 7,3540.58%
    Borrowings          
    Advances from the FHLBB  954,989 11,7064.80% 1,191,424 14,2874.74% 331,840 1,7002.00%
    Subordinated debentures and notes  84,134 1,3786.55% 84,098 1,3636.49% 83,989 1,2956.17%
    Other borrowed funds  117,531 7902.67% 86,896 5232.41% 89,019 2681.20%
    Total borrowings  1,156,654 13,8744.69% 1,362,418 16,1734.70% 504,848 3,2632.53%
    Total interest-bearing liabilities  7,900,642 62,9903.16% 7,978,891 59,3202.98% 5,499,136 10,6170.77%
    Non-interest-bearing liabilities:          
    Demand checking accounts  1,794,225   1,849,393   1,908,459  
    Other non-interest-bearing liabilities  318,041   270,221   197,446  
    Total liabilities  10,012,908   10,098,505   7,605,041  
    Stockholders’ equity  1,167,727   1,174,167   981,379  
    Total liabilities and equity $11,180,635    $11,272,672    $8,586,420  
    Net interest income (tax-equivalent basis) /Interest-rate spread (4)   84,1632.45%  86,1392.51%  78,0793.58%
    Less adjustment of tax-exempt income   93   102   53 
    Net interest income  $84,070  $86,037  $78,026 
    Net interest margin (5)   3.18%  3.26%  3.80%
               
    (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
    Average Yields / Costs (Unaudited)
      Nine Months Ended
      September 30, 2023September 30, 2022
      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) $971,855$22,9053.14%$720,266$9,5821.77%
    Marketable and restricted equity securities (2)  74,000 4,2387.64% 31,663 1,1324.77%
    Short-term investments  183,295 7,2365.26% 119,083 6860.77%
    Total investments  1,229,150 34,3793.73% 871,012 11,4001.75%
    Loans and Leases:       
    Commercial real estate loans (3)  5,629,600 225,9995.29% 4,204,260 119,7233.76%
    Commercial loans (3)  915,420 42,8146.17% 727,333 23,5644.28%
    Equipment financing (3)  1,253,512 66,9017.12% 1,131,069 54,9516.48%
    Consumer loans (3)  1,469,025 55,2105.01% 1,191,294 32,3043.62%
    Total loans and leases  9,267,557 390,9245.62% 7,253,956 230,5424.24%
    Total interest-earning assets  10,496,707 425,3035.40% 8,124,968 241,9423.97%
    Non-interest-earning assets  698,273   419,501  
    Total assets $11,194,980    $8,544,469  
            
    Liabilities and Stockholders' Equity:       
    Interest-bearing liabilities:       
    Deposits:       
    NOW accounts $741,951 3,1290.56%$603,243 8980.20%
    Savings accounts  1,365,541 17,2901.69% 915,185 1,0730.16%
    Money market accounts  2,227,404 41,9142.52% 2,423,207 7,6810.42%
    Certificates of deposit  1,394,338 29,6052.84% 1,024,303 5,3450.70%
    Brokered deposit accounts  798,800 29,6934.97% 121,724 4100.45%
    Total interest-bearing deposits  6,528,034 121,6312.49% 5,087,662 15,4070.40%
    Borrowings       
    Advances from the FHLBB  1,135,845 40,5244.70% 207,090 2,3761.51%
    Subordinated debentures and notes  84,098 4,0956.49% 83,952 3,8016.04%
    Other borrowed funds  120,825 2,5622.83% 108,337 4580.57%
    Total borrowings  1,340,768 47,1814.64% 399,379 6,6352.19%
    Total interest-bearing liabilities  7,868,802 168,8122.87% 5,487,041 22,0420.54%
    Non-interest-bearing liabilities:       
    Demand checking accounts  1,857,429   1,891,698  
    Other non-interest-bearing liabilities  301,543   180,842  
    Total liabilities  10,027,774   7,559,581  
    Stockholders’ equity  1,167,206   984,888  
    Total liabilities and equity $11,194,980    $8,544,469  
    Net interest income (tax-equivalent basis) /Interest-rate spread (4)   256,4912.53%  219,9003.43%
    Less adjustment of tax-exempt income   335   159 
    Net interest income  $256,156    $219,741 
    Net interest margin (5)   3.27%  3.62%
            
    (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)
     At and for the Three Months Ended
    September 30,    		At and for the Nine Months Ended
    September 30,
      2023  2022  2023  2022 
    Reconciliation Table - Non-GAAP Financial Information(Dollars in Thousands Except Share Data)(Dollars in Thousands Except Share Data)
      
    Reported Pretax Income$28,868 $37,066 $65,351 $103,813 
    Less:     
    Security gains —  —  1,704  — 
    Add:     
    Day 1 PCSB CECL provision —  —  16,744  — 
    Merger and acquisition expense —  1,073  7,411  1,608 
    Operating Pretax Income $28,868 $38,139 $87,802 $105,421 
    Effective tax rate  21.4% 18.7% 20.3% 22.9%
    Provision for income taxes  6,167  7,118  17,789  24,132 
    Operating earnings after tax$22,701 $31,021 $70,013 $81,289 
          
    Operating earnings per common share:     
    Basic $0.26 $0.40 $0.80 $1.05 
    Diluted $0.26 $0.40 $0.79 $1.05 
          
    Weighted average common shares outstanding during the period:    
    Basic  88,795,270  76,779,038  88,016,190  77,159,356 
    Diluted  88,971,210  77,007,971  88,253,361  77,448,290 
          
          
    Return on average assets * 0.81% 1.40% 0.62% 1.25%
    Less:     
    Security gains (after-tax) * —% —% 0.02% —%
    Add:     
    Day 1 PCSB CECL provision * —% —% 0.16% —%
    Merger and acquisition expense (after-tax) * —% 0.04% 0.07% 0.02%
    Operating return on average assets * 0.81% 1.44% 0.83% 1.27%
          
          
    Return on average tangible assets * 0.83% 1.43% 0.64% 1.27%
    Less:     
    Security gains (after-tax) * —% —% 0.02% —%
    Add:     
    Day 1 PCSB CECL provision * —% —% 0.16% —%
    Merger and acquisition expense (after-tax) * —% 0.04% 0.07% 0.02%
    Operating return on average tangible assets * 0.83% 1.47% 0.85% 1.29%
          
          
    Return on average stockholders' equity * 7.78% 12.29% 5.95% 10.84%
    Less:     
    Security gains (after-tax) * —% —% 0.16% —%
    Add:     
    Day 1 PCSB CECL provision * —% —% 1.53% —%
    Merger and acquisition expense (after-tax) * —% 0.36% 0.68% 0.17%
    Operating return on average stockholders' equity * 7.78% 12.65% 8.00% 11.01%
          
          
    Return on average tangible stockholders' equity * 10.09% 14.72% 7.76% 12.98%
    Less:     
    Security gains (after-tax) * —% —% 0.20% —%
    Add:     
    Day 1 PCSB CECL provision * —% —% 1.99% —%
    Merger and acquisition expense (after-tax) * —% 0.43% 0.88% 0.20%
    Operating return on average tangible stockholders' equity * 10.09% 15.15% 10.43% 13.18%
          
    * Ratios at and for the three and nine months ended are annualized.
     
     At and for the Three Months Ended
     September 30,
    2023    		June 30,
    2023    		March 31,
    2023    		December 31,
    2022    		September 30,
    2022
     (Dollars in Thousands)
     
    Net income, as reported$22,701 $21,850 $7,560 $29,695 $30,149 
          
    Average total assets$11,180,635 $11,272,672 $11,131,087 $8,857,631 $8,586,420 
    Less: Average goodwill and average identified intangible assets, net 268,199  270,147  278,135  162,266  162,387 
    Average tangible assets$10,912,436 $11,002,525 $10,852,952 $8,695,365 $8,424,033 
          
    Return on average tangible assets (annualized) 0.83% 0.79% 0.28% 1.37% 1.43%
          
    Average total stockholders’ equity$1,167,727 $1,174,167 $1,159,635 $982,306 $981,379 
    Less: Average goodwill and average identified intangible assets, net 268,199  270,147  278,135  162,266  162,387 
    Average tangible stockholders’ equity$899,528 $904,020 $881,500 $820,040 $818,992 
          
    Return on average tangible stockholders’ equity (annualized) 10.09% 9.67% 3.43% 14.48% 14.72%
          
    Total stockholders’ equity$1,157,871 $1,162,308 $1,165,066 $992,125 $963,618 
    Less:     
    Goodwill 241,222  241,222  241,222  160,427  160,427 
    Identified intangible assets, net 26,172  28,126  30,080  1,781  1,902 
    Tangible stockholders' equity$890,477 $892,960 $893,764 $829,917 $801,289 
          
    Total assets$11,180,555 $11,206,078 $11,522,485 $9,185,836 $8,695,708 
    Less:     
    Goodwill 241,222  241,222  241,222  160,427  160,427 
    Identified intangible assets, net 26,172  28,126  30,080  1,781  1,902 
    Tangible assets$10,913,161 $10,936,730 $11,251,183 $9,023,628 $8,533,379 
          
    Tangible stockholders’ equity to tangible assets 8.16% 8.16% 7.94% 9.20% 9.39%
          
    Tangible stockholders' equity$890,477 $892,960 $893,764 $829,917 $801,289 
          
    Number of common shares issued 96,998,075  96,998,075  96,998,075  85,177,172  85,177,172 
    Less:     
    Treasury shares 7,350,981  7,734,891  7,734,891  7,731,445  7,730,945 
    Unallocated ESOP shares —  —  —  —  4,833 
    Unvested restricted shares 780,859  598,049  598,049  601,495  601,995 
    Number of common shares outstanding 88,866,235  88,665,135  88,665,135  76,844,232  76,839,399 
          
    Tangible book value per common share$10.02 $10.07 $10.08 $10.80 $10.43 
                    

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