• Brookline Bancorp Announces Second Quarter Results

    ソース: Nasdaq GlobeNewswire / 26 7 2023 16:05:39   America/New_York

    Net Income of $21.9 million, EPS of $0.25

    Operating Earnings of $23.2 million, Operating EPS of $0.26

    BOSTON, July 26, 2023 (GLOBE NEWSWIRE) -- Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced net income of $21.9 million, or $0.25 per basic and diluted share, for the second quarter of 2023, compared to net income of $7.6 million, or $0.09 per basic and diluted share, for the first quarter of 2023, and net income of $25.2 million, or $0.33 per basic and diluted share, for the second quarter of 2022.

    “I am pleased to report on our consistent performance in the second quarter,” Chairman and CEO Paul Perrault commented on the Company’s earnings. “Core deposits increased from the prior quarter and our bankers continue to demonstrate our culture by providing excellent customer service to our clients, which contributes to the continued growth of our Company.”

    BALANCE SHEET

    Total assets at June 30, 2023 decreased $0.3 billion to $11.2 billion from $11.5 billion at March 31, 2023, and increased $2.7 billion from $8.5 billion at June 30, 2022. At June 30, 2023, total loans and leases were $9.3 billion, representing an increase of $0.1 billion from March 31, 2023, and an increase of $2.0 billion from June 30, 2022. The loan portfolio grew $0.1 billion in the second quarter compared to growth of $1.6 billion in the first quarter, primarily driven by the completion of the acquisition of PCSB Financial Corporation ("PCSB").

    Total investment securities at June 30, 2023 decreased $156.8 million to $910.2 million from $1.1 billion at March 31, 2023, and increased $192.4 million from $717.8 million at June 30, 2022. Total cash and cash equivalents at June 30, 2023 decreased $261.9 million to $224.4 million from $486.3 million at March 31, 2023, and increased $134.1 million from $90.3 million at June 30, 2022. As of June 30, 2023, total investment securities and total cash and cash equivalents represented 10.1 percent of total assets compared to 13.5 percent and 9.5 percent as of March 31, 2023 and June 30, 2022, respectively.

    Total deposits at June 30, 2023 increased $60.6 million to $8.52 billion from $8.46 billion at March 31, 2023, consisting of a $110.1 million increase in core deposits (which include demand checking, NOW, money market and savings accounts) and certificate of deposit accounts, partially offset by a $49.5 million decrease in brokered deposits, and increased $1.6 billion from $6.9 billion at June 30, 2022, primarily driven by the completion of the PCSB acquisition.

    Total borrowed funds at June 30, 2023 decreased $403.8 million to $1.2 billion from $1.6 billion at March 31, 2023, and increased $748.1 million from $478.2 million at June 30, 2022.

    The ratio of stockholders’ equity to total assets was 10.37 percent at June 30, 2023, compared to 10.11 percent at March 31, 2023, and 11.38 percent at June 30, 2022. The ratio of tangible stockholders’ equity to tangible assets (non-GAAP) was 8.16 percent at June 30, 2023, compared to 7.94 percent at March 31, 2023, and 9.65 percent at June 30, 2022. Tangible book value per share (non-GAAP) decreased $0.01 from $10.08 at March 31, 2023 to $10.07 at June 30, 2023, compared to $10.51 at June 30, 2022.

    NET INTEREST INCOME

    Net interest income remained consistent quarter over quarter at $86.0 million. The net interest margin decreased 10 basis points to 3.26 percent for the three months ended June 30, 2023 from 3.36 percent for the three months ended March 31, 2023, primarily driven by higher funding costs.

    NON-INTEREST INCOME

    Total non-interest income for the quarter ended June 30, 2023 decreased $7.5 million to $5.5 million from $12.9 million for the quarter ended March 31, 2023. The decrease was primarily driven by a combined $3.0 million decline in gain on sales of loans and investment, $2.0 million decline in derivative income, and $2.0 million impact from the mark to market on interest rate swaps.

    PROVISION FOR CREDIT LOSSES

    The Company recorded a provision for credit losses of $5.7 million for the quarter ended June 30, 2023, compared to $25.3 million for the quarter ended March 31, 2023. The higher provision for credit losses in the first quarter of 2023 was primarily driven by the acquisition of PCSB as well as loan growth.

    Total net charge-offs for the second quarter of 2023 were $1.1 million compared to $0.5 million in the first quarter of 2023. The increase was primarily driven by an increase in net charge-offs on equipment financing loans of $0.6 million. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis increased to 5 basis points for the second quarter of 2023 from 2 basis points for the first quarter of 2023.

    The allowance for loan and lease losses represented 1.35 percent of total loans and leases at June 30, 2023, compared to 1.31 percent at March 31, 2023, and 1.28 percent at June 30, 2022.

    ASSET QUALITY

    The ratio of nonperforming loans and leases to total loans and leases was 0.50 percent at June 30, 2023, an increase from 0.31 percent at March 31, 2023. Total nonaccrual loans and leases increased $17.9 million to $46.3 million at June 30, 2023 from $28.5 million at March 31, 2023. The ratio of nonperforming assets to total assets was 0.42 percent at June 30, 2023, an increase from 0.25 percent at March 31, 2023. Total nonperforming assets increased $18.0 million to $46.9 million at June 30, 2023 from $29.0 million at March 31, 2023. The increase in nonperforming assets was primarily driven by a $9.3 million commercial relationship and a $2.8 million commercial real estate relationship.

    NON-INTEREST EXPENSE

    Non-interest expense for the quarter ended June 30, 2023 decreased $7.0 million to $57.8 million from $64.8 million for the quarter ended March 31, 2023. The decrease was primarily driven by decreases of $5.4 million in merger and acquisition expense, $3.1 million in compensation and employee benefits expense, and $0.4 million in occupancy expense, partially offset by an increase of $1.4 million in FDIC insurance expense and an increase of $0.6 million in professional services expense.

    PROVISION FOR INCOME TAXES

    The effective tax rate was 21.4 percent and 19.4 percent for the three and six months ended June 30, 2023 compared to 12.8 percent for the three months ended March 31, 2023 and 25.2 percent for both the three and six months ended June 30, 2022.

    RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

    The annualized return on average assets increased to 0.78 percent during the second quarter 2023 from 0.27 percent for the first quarter of 2023.

    The annualized return on average stockholders' equity increased to 7.44 percent during the second quarter of 2023 from 2.61 percent for the first quarter of 2023. The annualized return on average tangible stockholders’ equity increased to 9.67 percent for the second quarter of 2023 from 3.43 percent for the first quarter of 2023.

    DIVIDEND DECLARED

    The Company’s Board of Directors approved a dividend of $0.135 per share for the quarter ended June 30, 2023. The dividend will be paid on August 25, 2023 to stockholders of record on August 11, 2023.

    CONFERENCE CALL

    The Company will conduct a conference call/webcast at 1:30 PM Eastern Time on Thursday, July 27, 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/769450735. 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 281178). 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: 932919.

    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 
     June 30,
    2023    		March 31,
    2023
    		December 31,
    2022
    		September 30,
    2022
    		 June 30,
    2022
     (Dollars In Thousands Except per Share Data)
    Earnings Data:     
    Net interest income$86,037$86,049$80,030$78,026$71,867
    Provision (credit) for credit losses5,72625,3445,6712,845173
    Provision (credit) for investment losses13319854(10)54
    Non-interest income5,46212,9379,0566,8346,928
    Non-interest expense57,82564,77647,22544,95944,871
    Income before provision for income taxes27,8158,66836,13637,06633,697
    Net income21,8507,56029,69530,14925,195
          
    Performance Ratios:     
    Net interest margin (1)3.26 %3.36 %3.81 %3.80 %3.56 %
    Interest-rate spread (1)2.51 %2.66 %3.35 %3.58 %3.41 %
    Return on average assets (annualized)0.78 %0.27 %1.34 %1.40 %1.18 %
    Return on average tangible assets (annualized) (non-GAAP)0.79 %0.28 %1.37 %1.43 %1.21 %
    Return on average stockholders' equity (annualized)7.44 %2.61 %12.09 %12.29 %10.32 %
    Return on average tangible stockholders' equity (annualized) (non-GAAP)9.67 %3.43 %14.48 %14.72 %12.39 %
    Efficiency ratio (2)63.20 %65.44 %53.01 %52.98 %56.95 %
          
    Per Common Share Data:     
    Net income — Basic$0.25$0.09$0.39$0.39$0.33
    Net income — Diluted0.250.090.390.390.33
    Cash dividends declared0.1350.1350.1350.1350.130
    Book value per share (end of period)13.1113.1412.9112.5412.63
    Tangible book value per share (end of period) (non-GAAP)10.0710.0810.8010.4310.51
    Stock price (end of period)8.7410.5014.1511.6513.31
          
    Balance Sheet:     
    Total assets$11,206,078$11,522,485$9,185,836$8,695,708$8,514,230
    Total loans and leases9,340,7999,246,9657,644,3887,421,3047,291,912
    Total deposits8,517,0138,456,4626,522,1466,735,6056,894,457
    Total stockholders’ equity1,162,3081,165,066992,125963,618968,496
          
    Asset Quality:     
    Nonperforming assets$46,925$28,962$15,302$18,312$21,259
    Nonperforming assets as a percentage of total assets0.42 %0.25 %0.17 %0.21 %0.25 %
    Allowance for loan and lease losses$125,817$120,865$98,482$94,169$93,188
    Allowance for loan and lease losses as a percentage of total loans and leases1.35 %1.31 %1.29 %1.27 %1.28 %
    Net loan and lease charge-offs (recoveries)$1,097$451$310$(179)$1,242
    Net loan and lease charge-offs as a percentage of average loans and leases (annualized)0.05 %0.02 %0.02 %(0.01)%0.07 %
          
    Capital Ratios:     
    Stockholders’ equity to total assets10.37 %10.11 %10.80 %11.08 %11.38 %
    Tangible stockholders’ equity to tangible assets (non-GAAP)8.16 %7.94 %9.20 %9.39 %9.65 %
          
    (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)
          
     June 30,
    2023    		March 31,
    2023
    		December 31,
    2022
    		September 30,
    2022
    		June 30,
    2022
    ASSETS(In Thousands Except Share Data)
    Cash and due from banks$44,323 $30,782 $191,767 $65,638 $50,429 
    Short-term investments 180,109  455,538  191,192  46,873  39,900 
    Total cash and cash equivalents 224,432  486,320  382,959  112,511  90,329 
    Investment securities available-for-sale 910,210  1,067,032  656,766  675,692  717,818 
    Total investment securities 910,210  1,067,032  656,766  675,692  717,818 
    Loans and leases:     
    Commercial real estate loans 5,670,771  5,610,414  4,404,148  4,269,512  4,225,754 
    Commercial loans and leases 2,193,027  2,147,149  2,016,499  1,933,645  1,860,182 
    Consumer loans 1,477,001  1,489,402  1,223,741  1,218,147  1,205,976 
    Total loans and leases 9,340,799  9,246,965  7,644,388  7,421,304  7,291,912 
    Allowance for loan and lease losses (125,817)  (120,865)  (98,482)  (94,169)  (93,188) 
    Net loans and leases 9,214,982  9,126,100  7,545,906  7,327,135  7,198,724 
    Restricted equity securities 71,421  86,230  71,307  44,760  35,406 
    Premises and equipment, net of accumulated depreciation 90,685  87,799  71,391  69,912  69,557 
    Right-of-use asset operating leases 31,774  30,067  19,484  18,614  18,226 
    Deferred tax asset 77,704  75,028  52,237  56,894  50,736 
    Goodwill 241,222  241,222  160,427  160,427  160,427 
    Identified intangible assets, net of accumulated amortization 28,126  30,080  1,781  1,902  2,022 
    Other real estate owned and repossessed assets 602  508  408  591  507 
    Other assets 314,920  292,099  223,170  227,270  170,478 
    Total assets$11,206,078 $11,522,485 $9,185,836 $8,695,708 $8,514,230 
    LIABILITIES AND STOCKHOLDERS' EQUITY     
    Deposits:     
    Demand checking accounts$1,843,516 $1,899,370 $1,802,518 $1,848,562 $1,845,365 
    NOW accounts 699,119  757,411  544,118  597,870  628,791 
    Savings accounts 1,464,054  1,268,375  762,271  824,789  894,926 
    Money market accounts 2,166,570  2,185,971  2,174,952  2,405,680  2,402,992 
    Certificate of deposit accounts 1,410,905  1,362,970  928,143  924,771  1,006,786 
    Brokered deposit accounts 932,849  982,365  310,144  133,933  115,597 
    Total deposits 8,517,013  8,456,462  6,522,146  6,735,605  6,894,457 
    Borrowed funds:     
    Advances from the FHLBB 1,043,381  1,458,457  1,237,823  557,895  307,967 
    Subordinated debentures and notes 84,116  84,080  84,044  84,008  83,970 
    Other borrowed funds 98,773  87,565  110,785  116,865  86,263 
    Total borrowed funds 1,226,270  1,630,102  1,432,652  758,768  478,200 
    Operating lease liabilities 33,021  31,373  19,484  18,614  18,226 
    Mortgagors’ escrow accounts 17,207  17,080  5,607  5,785  5,771 
    Reserve for unfunded credits 22,789  23,112  20,602  19,555  17,511 
    Accrued expenses and other liabilities 227,470  199,290  193,220  193,763  131,569 
    Total liabilities 10,043,770  10,357,419  8,193,711  7,732,090  7,545,734 
    Stockholders' equity:     
    Common stock, $0.01 par value; 200,000,000 shares authorized; 96,998,075 shares issued, 96,998,075 shares issued, 85,177,172 shares issued, 85,177,172 shares issued, and 85,177,172 shares issued, respectively 970  970  852  852  852 
    Additional paid-in capital 905,084  904,174  736,074  735,119  738,544 
    Retained earnings, partially restricted 417,328  407,528  412,019  392,779  372,677 
    Accumulated other comprehensive income (66,156)  (52,688)  (61,947)  (70,227)  (44,977) 
    Treasury stock, at cost;     
    7,734,891, 7,734,891, 7,731,445, 7,730,945, and 7,995,888 shares, respectively (94,918)  (94,918)  (94,873)  (94,866)  (98,525) 
    Unallocated common stock held by the Employee Stock Ownership Plan;     
    0, 0, 0, 4,833, and 11,442 shares, respectively —  —  —  (39)  (75) 
    Total stockholders' equity 1,162,308  1,165,066  992,125  963,618  968,496 
    Total liabilities and stockholders' equity$11,206,078 $11,522,485 $9,185,836 $8,695,708 $8,514,230 
          


    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Consolidated Statements of Income (Unaudited)
     Three Months Ended
     June 30,
    2023
    		 March 31,
    2023     		December 31,
    2022    		September 30,
    2022
    		June 30,
    2022
     (In Thousands Except Share Data)
    Interest and dividend income:     
    Loans and leases$132,299$121,931$98,386$84,375 $74,287
    Debt securities 8,034 7,870 3,497 3,337  3,249
    Restricted equity securities 1,673 1,255 766 467  337
    Short-term investments 3,351 1,495 754 464  156
    Total interest and dividend income 145,357 132,551 103,403 88,643  78,029
    Interest expense:     
    Deposits 43,147 29,368 14,185 7,354  4,282
    Borrowed funds 16,173 17,134 9,188 3,263  1,880
    Total interest expense 59,320 46,502 23,373 10,617  6,162
    Net interest income 86,037 86,049 80,030 78,026  71,867
    Provision for credit losses 5,726 25,344 5,671 2,845  173
    Provision (credit) for investment losses 133 198 54 (10)  54
    Net interest income after provision for credit losses 80,178 60,507 74,305 75,191  71,640
    Non-interest income:     
    Deposit fees 2,866 2,657 2,916 2,759  2,744
    Loan fees 491 391 446 349  666
    Loan level derivative income, net 363 2,373 670 1,275  1,615
    Gain on investment securities, net 3 1,701 321 —  —
    Gain on sales of loans and leases held-for-sale 308 1,638 2,612 889  291
    Other 1,431 4,177 2,091 1,562  1,612
    Total non-interest income 5,462 12,937 9,056 6,834  6,928
    Non-interest expense:     
    Compensation and employee benefits 33,438 36,565 29,525 28,306  28,772
    Occupancy 4,870 5,223 4,005 3,906  3,807
    Equipment and data processing 6,531 6,462 5,758 5,066  4,931
    Professional services 1,986 1,430 1,546 1,069  1,219
    FDIC insurance 2,609 1,244 1,001 709  739
    Advertising and marketing 1,382 1,410 1,052 1,337  1,319
    Amortization of identified intangible assets 1,954 1,966 120 120  120
    Merger and acquisition expense 1,002 6,409 641 1,073  535
    Other 4,053 4,067 3,577 3,373  3,429
    Total non-interest expense 57,825 64,776 47,225 44,959  44,871
    Income before provision for income taxes 27,815 8,668 36,136 37,066  33,697
    Provision for income taxes 5,965 1,108 6,441 6,917  8,502
    Net income$21,850$7,560$29,695$30,149 $25,195
    Earnings per common share:     
    Basic$0.25$0.09$0.39$0.39 $0.33
    Diluted$0.25$0.09$0.39$0.39 $0.33
    Weighted average common shares outstanding during the period:    
    Basic 88,665,135 86,563,641 76,841,655 76,779,038  77,091,013
    Diluted 88,926,543 86,837,806 77,065,076 77,007,971  77,419,288
    Dividends paid per common share$0.135$0.135$0.135$0.130 $0.130
          


    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Consolidated Statements of Income (Unaudited)
      
     Six Months Ended June 30,
      2023 2022
     (In Thousands Except Share Data)
    Interest and dividend income:  
    Loans and leases$254,230$146,008
    Debt securities 15,904 6,245
    Marketable and restricted equity securities 2,928 665
    Short-term investments 4,846 222
    Total interest and dividend income 277,908 153,140
    Interest expense:  
    Deposits 72,515 8,053
    Borrowed funds 33,307 3,372
    Total interest expense 105,822 11,425
    Net interest income 172,086 141,715
    Provision for credit losses 31,070 9
    Provision for investment losses 331 58
    Net interest income after provision for credit losses 140,685 141,648
    Non-interest income:  
    Deposit Fees 5,523 5,244
    Loan Fees 882 1,413
    Loan level derivative income, net 2,736 2,301
    Gain on investment securities, net 1,704 —
    Gain on sales of loans and leases held-for-sale 1,946 635
    Other 5,608 2,864
    Total non-interest income 18,399 12,457
    Non-interest expense:  
    Compensation and employee benefits 70,003 55,656
    Occupancy 10,093 8,091
    Equipment and data processing 12,993 10,009
    Professional services 3,416 2,445
    FDIC insurance 3,853 1,467
    Advertising and marketing 2,792 2,591
    Amortization of identified intangible assets 3,920 254
    Merger and acquisition expense 7,411 535
    Other 8,120 6,310
    Total non-interest expense 122,601 87,358
    Income before provision for income taxes 36,483 66,747
    Provision for income taxes 7,073 16,847
    Net income$29,410$49,900
    Earnings per common share:  
    Basic$0.34$0.65
    Diluted$0.34$0.65
    Weighted average common shares outstanding during the period: 
    Basic 87,620,194 77,352,666
    Diluted 87,887,980 77,671,601
    Dividends paid per common share$0.270$0.255
       


    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Asset Quality Analysis (Unaudited)
     At and for the Three Months Ended
     June 30,
    2023
    		March 31,
    2023
    		December 31,
    2022    		September 30,
    2022
    		June 30,
    2022
     (Dollars in Thousands)
    NONPERFORMING ASSETS:     
    Loans and leases accounted for on a nonaccrual basis:     
    Commercial real estate mortgage$8,737 $4,589 $607 $3,136 $6,470 
    Construction 3,828  3,883  707  —  — 
    Total commercial real estate loans 12,565  8,472  1,314  3,136  6,470 
          
    Commercial 16,023  5,495  464  618  892 
    Equipment financing 12,809  9,908  9,653  10,544  10,183 
    Condominium association —  51  58  64  71 
    Total commercial loans and leases 28,832  15,454  10,175  11,226  11,146 
          
    Residential mortgage 4,343  3,449  2,680  2,741  2,412 
    Home equity 583  1,079  723  616  721 
    Other consumer —  —  2  2  3 
    Total consumer loans 4,926  4,528  3,405  3,359  3,136 
          
    Total nonaccrual loans and leases 46,323  28,454  14,894  17,721  20,752 
          
    Other repossessed assets 602  508  408  591  507 
    Total nonperforming assets$46,925 $28,962 $15,302 $18,312 $21,259 
          
    Loans and leases past due greater than 90 days and still accruing$490 $726 $33 $9,583 $266 
          
    Nonperforming loans and leases as a percentage of total loans and leases 0.50% 0.31% 0.19% 0.24% 0.28%
    Nonperforming assets as a percentage of total assets 0.42% 0.25% 0.17% 0.21% 0.25%
          
    PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:   
    Allowance for loan and lease losses at beginning of period$120,865 $98,482 $94,169 $93,188 $95,463 
    Charge-offs (1,690) (845) (658) (598) (1,533)
    Recoveries 593  394  348  777  291 
    Net (charge-offs) recoveries (1,097) (451) (310) 179  (1,242)
    Provision (credit) for loan and lease losses excluding unfunded commitments * 6,049  22,834  4,623  802  (1,033)
    Allowance for loan and lease losses at end of period$125,817 $120,865 $98,482 $94,169 $93,188 
          
    Allowance for loan and lease losses as a percentage of total loans and leases 1.35% 1.31% 1.29% 1.27% 1.28%
          
    NET CHARGE-OFFS (RECOVERIES):     
    Commercial real estate loans$(6)$(6)$(6)$(6)$(6)
    Commercial loans and leases 1,108  457  320  (179) 1,254 
    Consumer loans (5) —  (4) 6  (6)
    Total net charge-offs (recoveries)$1,097 $451 $310 $(179)$1,242 
          
    Net loan and lease charge-offs as a percentage of average loans and leases (annualized) 0.05% 0.02% 0.02% (0.01)% 0.07%
          
    *Provision for loan and lease losses does not include (credit) provision of $(0.3) million, $2.5 million, $1.0 million, $2.0 million, and $1.2 million for credit losses on unfunded commitments during the three months ended June 20, 2023, March 31, 2023, December 31, 2022, September 30, 2022 and June 30, 2022, respectively.     
     


    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Average Yields / Costs (Unaudited)
     Three Months Ended
     June 30, 2023March 31, 2023June 30, 2022
     Average BalanceInterest (1)Average Yield/ CostAverage BalanceInterest (1)Average Yield/ CostAverage BalanceInterest (1)Average Yield/ Cost
     (Dollars in Thousands)
    Assets:         
    Interest-earning assets:         
    Investments:         
    Debt securities (2)$1,000,440$8,0913.23%$1,029,068$7,9743.10%$726,374$3,2491.79%
    Marketable and restricted equity securities (2) 77,364 1,6738.65% 76,911 1,2556.53% 30,461 3374.42%
    Short-term investments 229,474 3,3515.84% 147,654 1,4954.05% 99,905 1560.62%
    Total investments 1,307,278 13,1154.01% 1,253,633 10,7243.42% 856,740 3,7421.75%
    Loans and Leases:         
    Commercial real estate loans (3) 5,640,491 79,5825.58% 5,579,977 67,6674.85% 4,220,257 38,9673.65%
    Commercial loans (3) 913,732 13,5025.85% 892,522 14,0176.28% 695,365 7,0744.03%
    Equipment financing (3) 1,253,199 22,3577.14% 1,226,717 21,2136.92% 1,129,606 17,8976.34%
    Consumer loans (3) 1,482,799 16,9034.56% 1,452,072 19,0705.28% 1,195,051 10,3973.48%
    Total loans and leases 9,290,221 132,3445.70% 9,151,288 121,9675.33% 7,240,279 74,3354.11%
    Total interest-earning assets 10,597,499 145,4595.49% 10,404,921 132,6915.10% 8,097,019 78,0773.86%
    Non-interest-earning assets 675,173   726,166   418,311  
    Total assets$11,272,672  $11,131,087  $8,515,330  
              
    Liabilities and Stockholders' Equity:         
    Interest-bearing liabilities:         
    Deposits:         
    NOW accounts$735,001 1,0690.58%$810,333 9010.45%$612,439 2160.14%
    Savings accounts 1,374,337 5,9171.73% 1,160,003 2,5140.88% 930,957 2110.09%
    Money market accounts 2,140,522 13,9892.62% 2,366,235 12,1402.08% 2,429,043 2,0730.34%
    Certificates of deposit 1,390,913 10,0212.89% 1,346,761 7,4562.25% 1,018,471 1,6940.67%
    Brokered deposit accounts 975,700 12,1515.00% 534,527 6,3574.82% 115,535 880.30%
    Total interest-bearing deposits 6,616,473 43,1472.62% 6,217,859 29,3681.92% 5,106,445 4,2820.34%
    Borrowings         
    Advances from the FHLBB 1,191,424 14,2874.74% 1,264,523 14,5314.60% 183,047 4891.06%
    Subordinated debentures and notes 84,098 1,3636.49% 84,062 1,3546.44% 83,952 1,2626.02%
    Other borrowed funds 86,896 5232.41% 158,499 1,2493.20% 106,363 1290.48%
    Total borrowings 1,362,418 16,1734.70% 1,507,084 17,1344.55% 373,362 1,8801.99%
    Total interest-bearing liabilities 7,978,891 59,3202.98% 7,724,943 46,5022.44% 5,479,807 6,1620.45%
    Non-interest-bearing liabilities:         
    Demand checking accounts 1,849,393   1,930,162   1,886,284  
    Other non-interest-bearing liabilities 270,221   316,347   173,072  
    Total liabilities 10,098,505   9,971,452   7,539,163  
    Stockholders’ equity 1,174,167   1,159,635   976,167  
    Total liabilities and equity$11,272,672  $11,131,087  $8,515,330  
    Net interest income (tax-equivalent basis) /Interest-rate spread (4)  86,1392.51%  86,1892.66%  71,9153.41%
    Less adjustment of tax-exempt income  102   140   48 
    Net interest income $86,037  $86,049  $71,867 
    Net interest margin (5)  3.26%  3.36%  3.56%
              
    (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)
     Six Months Ended
     June 30, 2023June 30, 2022
     Average BalanceInterest (1)Average Yield/ CostAverage BalanceInterest (1)Average Yield/ Cost
     (Dollars in Thousands)
    Assets:      
    Interest-earning assets:      
    Investments:      
    Debt securities (2)$1,014,675$16,0653.17%$723,336$6,2451.73%
    Marketable and restricted equity securities (2) 77,139 2,9287.59% 29,192 6654.55%
    Short-term investments 188,790 4,8465.13% 145,934 2220.30%
    Total investments 1,280,604 23,8393.72% 898,462 7,1321.59%
    Loans and Leases:      
    Commercial real estate loans (3) 5,610,401 147,2495.22% 4,186,523 74,9943.56%
    Commercial loans (3) 903,185 27,5196.06% 725,422 15,0724.13%
    Equipment financing (3) 1,240,031 43,5707.03% 1,117,467 35,9096.43%
    Consumer loans (3) 1,467,521 35,9734.91% 1,183,328 20,1393.41%
    Total loans and leases 9,221,138 254,3115.52% 7,212,740 146,1144.05%
    Total interest-earning assets 10,501,742 278,1505.30% 8,111,202 153,2463.78%
    Non-interest-earning assets 700,529   411,944  
    Total assets$11,202,271  $8,523,146  
           
    Liabilities and Stockholders' Equity:      
    Interest-bearing liabilities:      
    Deposits:      
    NOW accounts$772,459 1,9700.51%$601,227 3190.11%
    Savings accounts 1,267,762 8,4311.34% 932,059 4090.09%
    Money market accounts 2,252,755 26,1292.34% 2,422,845 3,6430.30%
    Certificates of deposit 1,368,959 17,4772.57% 1,054,897 3,5420.68%
    Brokered deposit accounts 756,332 18,5084.93% 124,096 1400.23%
    Total interest-bearing deposits 6,418,267 72,5152.28% 5,135,124 8,0530.32%
    Borrowings      
    Advances from the FHLBB 1,227,772 28,8184.67% 143,681 6760.94%
    Subordinated debentures and notes 84,080 2,7176.46% 83,934 2,5065.97%
    Other borrowed funds 122,500 1,7722.92% 118,156 1900.32%
    Total borrowings 1,434,352 33,3074.62% 345,771 3,3721.94%
    Total interest-bearing liabilities 7,852,619 105,8222.72% 5,480,895 11,4250.42%
    Non-interest-bearing liabilities:      
    Demand checking accounts 1,889,554   1,883,179  
    Other non-interest-bearing liabilities 293,157   172,400  
    Total liabilities 10,035,330   7,536,474  
    Stockholders’ equity 1,166,941   986,672  
    Total liabilities and equity$11,202,271  $8,523,146  
    Net interest income (tax-equivalent basis) /Interest-rate spread (4)  172,3282.58%  141,8213.36%
    Less adjustment of tax-exempt income  242   106 
    Net interest income $172,086  $141,715 
    Net interest margin (5)  3.31%  3.53%
           
    (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
    June 30,    		At and for the Six Months Ended
    June 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$27,815 $33,697 $36,483 $66,747 
    Less:    
    Security gains 3  —  1,704  — 
    Add:    
    Day 1 PCSB CECL provision —  —  16,744  — 
    Merger and acquisition expense 1,002  535  7,411  535 
    Operating Pretax Income$28,814 $34,232 $58,934 $67,282 
    Estimated effective tax rate 19.4% 25.2% 19.4% 25.2%
    Estimated taxes 5,587  8,637  11,427  16,982 
    Operating earnings after tax$23,227 $25,595 $47,507 $50,300 
         
    Operating earnings per common share:    
    Basic$0.26 $0.33 $0.54 $0.65 
    Diluted$0.26 $0.33 $0.54 $0.65 
         
    Weighted average common shares outstanding during the period:    
    Basic 88,665,135  77,091,013  87,620,194  77,352,666 
    Diluted 88,926,543  77,419,288  87,887,980  77,671,601 
         
         
    Return on average assets * 0.78% 1.18% 0.53% 1.17%
    Less:    
    Security gains (after-tax) * —% —% 0.02% —%
    Add:    
    Day 1 PCSB CECL provision * —% —% 0.24% —%
    Merger and acquisition expense (after-tax) * 0.03% 0.02% 0.11% 0.01%
    Operating return on average assets * 0.81% 1.20% 0.86% 1.18%
         
         
    Return on average tangible assets * 0.79% 1.21% 0.54% 1.19%
    Less:    
    Security gains (after-tax) * —% —% 0.03% —%
    Add:    
    Day 1 PCSB CECL provision * —% —% 0.25% —%
    Merger and acquisition expense (after-tax) * 0.03% 0.02% 0.11% 0.01%
    Operating return on average tangible assets * 0.82% 1.23% 0.87% 1.20%
         
         
    Return on average stockholders' equity * 7.44% 10.32% 5.04% 10.11%
    Less:    
    Security gains (after-tax) * —% —% 0.24% —%
    Add:    
    Day 1 PCSB CECL provision * —% —% 2.31% —%
    Merger and acquisition expense (after-tax) * 0.28% 0.16% 1.02% 0.08%
    Operating return on average stockholders' equity * 7.72% 10.48% 8.13% 10.19%
         
         
    Return on average tangible stockholders' equity * 9.67% 12.39% 6.59% 12.11%
    Less:    
    Security gains (after-tax) * —% —% 0.31% —%
    Add:    
    Day 1 PCSB CECL provision * —% —% 3.02% —%
    Merger and acquisition expense (after-tax) * 0.36% 0.20% 1.34% 0.10%
    Operating return on average tangible stockholders' equity * 10.03% 12.59% 10.64% 12.21%
         
    * Ratios at and for the three months ended are annualized.    
         
     At and for the Three Months Ended
     June 30,
    2023
    		March 31,
    2023
    		December 31,
    2022
    		September 30,
    2022
    		June 30,
    2022
     (Dollars in Thousands)
          
    Net income, as reported$21,850 $7,560 $29,695 $30,149 $25,195 
          
    Average total assets$11,272,672 $11,131,087 $8,857,631 $8,586,420 $8,515,330 
    Less: Average goodwill and average identified intangible assets, net 270,147  278,135  162,266  162,387  162,507 
    Average tangible assets$11,002,525 $10,852,952 $8,695,365 $8,424,033 $8,352,823 
          
    Return on average tangible assets (annualized) 0.79 % 0.28 % 1.37 % 1.43 % 1.21 %
          
    Average total stockholders’ equity$1,174,167 $1,159,635 $982,306 $981,379 $976,167 
    Less: Average goodwill and average identified intangible assets, net 270,147  278,135  162,266  162,387  162,507 
    Average tangible stockholders’ equity$904,020 $881,500 $820,040 $818,992 $813,660 
          
    Return on average tangible stockholders’ equity (annualized) 9.67 % 3.43 % 14.48 % 14.72 % 12.39 %
          
    Total stockholders’ equity$1,162,308 $1,165,066 $992,125 $963,618 $968,496 
    Less:     
    Goodwill 241,222  241,222  160,427  160,427  160,427 
    Identified intangible assets, net 28,126  30,080  1,781  1,902  2,022 
    Tangible stockholders' equity$892,960 $893,764 $829,917 $801,289 $806,047 
          
    Total assets$11,206,078 $11,522,485 $9,185,836 $8,695,708 $8,514,230 
    Less:     
    Goodwill 241,222  241,222  160,427  160,427  160,427 
    Identified intangible assets, net 28,126  30,080  1,781  1,902  2,022 
    Tangible assets$10,936,730 $11,251,183 $9,023,628 $8,533,379 $8,351,781 
          
    Tangible stockholders’ equity to tangible assets 8.16 % 7.94 % 9.20 % 9.39 % 9.65 %
          
    Tangible stockholders' equity$892,960 $893,764 $829,917 $801,289 $806,047 
          
    Number of common shares issued 96,998,075  96,998,075  85,177,172  85,177,172  85,177,172 
    Less:     
    Treasury shares 7,734,891  7,734,891  7,731,445  7,730,945  7,995,888 
    Unallocated ESOP shares —  —  —  4,833  11,442 
    Unvested restricted shares 598,049  598,049  601,495  601,995  497,297 
    Number of common shares outstanding 88,665,135  88,665,135  76,844,232  76,839,399  76,672,545 
          
    Tangible book value per common share$ 10.07 $ 10.08 $ 10.80 $ 10.43 $ 10.51 
          

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