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Brookline Bancorp Announces Second Quarter Results
来源: Nasdaq GlobeNewswire / 24 7月 2024 15:05:01 America/Chicago
Net Income of $16.4 million, EPS of $0.18
Operating Earnings of $17.0 million, Operating EPS of $0.19
Quarterly Dividend of $0.135
BOSTON, July 24, 2024 (GLOBE NEWSWIRE) -- Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced net income of $16.4 million, or $0.18 per basic and diluted share, and operating earnings after tax (non-GAAP) of $17.0 million, or $0.19 per basic and diluted share, for the second quarter of 2024, compared to net income and operating earnings after tax (non-GAAP) of $14.7 million, or $0.16 per basic and diluted share, for the first quarter of 2024, and net income of $21.9 million, or $0.25 per basic and diluted share, and operating earnings after tax (non-GAAP) of $23.2 million, or $0.26 per basic and diluted share, for the second quarter of 2023.
Paul Perrault, Chairman and Chief Executive Officer commented, “I am pleased to report our second quarter earnings. We experienced solid loan and deposit growth across our three banks in the quarter. I would like to recognize our bankers for their diligence in providing extraordinary service to our clients.” Mr. Perrault continued, “While the margin pressure we and the rest of the banking industry experienced in the first quarter persisted in the second quarter, this pressure decreased in intensity slightly from the prior quarter. As we enter the second half of 2024, we remain optimistic about the overall economic outlook in our markets.”
BALANCE SHEET
Total assets at June 30, 2024 were $11.6 billion, representing an increase of $92.6 million from $11.5 billion at March 31, 2024, and an increase of $429.2 million from June 30, 2023. At June 30, 2024, total loans and leases were $9.7 billion, representing an increase of $66.1 million from March 31, 2024, and an increase of $380.3 million from June 30, 2023.
Total investment securities at June 30, 2024 decreased $9.4 million to $856.4 million from $865.8 million at March 31, 2024, and decreased $53.8 million from $910.2 million at June 30, 2023. Total cash and cash equivalents at June 30, 2024 increased $41.2 million to $343.1 million from $301.9 million at March 31, 2024, and increased $118.7 million from $224.4 million at June 30, 2023. As of June 30, 2024, total investment securities and total cash and cash equivalents represented 10.3 percent of total assets, compared to 10.1 percent as of March 31, 2024 and June 30, 2023, respectively.
Total deposits at June 30, 2024 increased $18.4 million to $8.7 billion from March 31, 2024, consisting of a $65.8 million increase in customer deposits partially offset by a $47.4 million decrease in brokered deposits, and increased $220.0 million from $8.5 billion at June 30, 2023, driven by growth in customer deposits.
Total borrowed funds at June 30, 2024 increased $67.6 million to $1.4 billion from March 31, 2024, and increased $203.2 million from $1.2 billion at June 30, 2023.
The ratio of stockholders’ equity to total assets was 10.30 percent at June 30, 2024, compared to 10.35 percent at March 31, 2024, and 10.37 percent at June 30, 2023. The ratio of tangible stockholders’ equity to tangible assets (non-GAAP) was 8.23 percent at June 30, 2024, as compared to 8.25 percent at March 31, 2024, and 8.16 percent at June 30, 2023. Tangible book value per common share (non-GAAP) increased $0.06 from $10.47 at March 31, 2024 to $10.53 at June 30, 2024, and increased $0.46 from $10.07 at June 30, 2023.
NET INTEREST INCOME
Net interest income decreased $1.6 million to $80.0 million during the second quarter of 2024 from $81.6 million for the quarter ended March 31, 2024. The net interest margin decreased 6 basis points to 3.00 percent for the three months ended June 30, 2024 from 3.06 percent for the three months ended March 31, 2024, primarily driven by the reversal of interest relating to new nonaccrual loans and higher funding costs.
NON-INTEREST INCOME
Total non-interest income for the quarter ended June 30, 2024 increased $0.1 million to $6.4 million from $6.3 million for the quarter ended March 31, 2024.
PROVISION FOR CREDIT LOSSES
The Company recorded a provision for credit losses of $5.6 million for the quarter ended June 30, 2024, compared to $7.4 million for the quarter ended March 31, 2024. The decrease in provision was largely driven by the stabilization of credit conditions.
Total net charge-offs for the second quarter of 2024 were $8.4 million, compared to $8.8 million in the first quarter of 2024. The $8.4 million in net charge-offs were largely driven by $3.9 million in commercial real estate loans and $4.3 million in equipment financing. The majority of net charge-offs were previously reserved for. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis decreased to 35 basis points for the second quarter of 2024 from 36 basis points for the first quarter of 2024.
The allowance for loan and lease losses represented 1.25 percent of total loans and leases at June 30, 2024, compared to 1.24 percent at March 31, 2024, and 1.35 percent at June 30, 2023.
ASSET QUALITY
The ratio of nonperforming loans and leases to total loans and leases was 0.62 percent at June 30, 2024, an increase from 0.42 percent at March 31, 2024. Total nonaccrual loans and leases increased $20.0 million to $60.7 million at June 30, 2024 from $40.7 million at March 31, 2024. The ratio of nonperforming assets to total assets was 0.54 percent at June 30, 2024, an increase from 0.37 percent at March 31, 2024. Total nonperforming assets increased $20.2 million to $62.7 million at June 30, 2024 from $42.5 million at March 31, 2024.
NON-INTEREST EXPENSE
Non-interest expense for the quarter ended June 30, 2024 decreased $1.8 million to $59.2 million from $61.0 million for the quarter ended March 31, 2024. The decrease was primarily driven by decreases of $1.9 million in compensation and employee benefits expense and $0.3 million in equipment and data processing expense, partially offset by a $0.8 million non-recurring restructuring charge due to the exit of the specialty vehicle business at Eastern Funding LLC.
PROVISION FOR INCOME TAXES
The effective tax rate was 24.4 percent and 24.5 percent for the three and six months ended June 30, 2024 compared to 24.7 percent for the three months ended March 31, 2024 and 21.4 percent and 19.4 percent for the three and six months ended June 30, 2023.
RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY
The annualized return on average assets increased to 0.57 percent during the second quarter 2024 from 0.51 percent for the first quarter of 2024.
The annualized return on average stockholders' equity increased to 5.49 percent during the second quarter of 2024 from 4.88 percent for the first quarter of 2024. The annualized return on average tangible stockholders’ equity increased to 7.04 percent for the second quarter of 2024 from 6.26 percent for the first quarter of 2024.
DIVIDEND DECLARED
The Company’s Board of Directors approved a dividend of $0.135 per share for the quarter ended June 30, 2024. The dividend will be paid on August 30, 2024 to stockholders of record on August 16, 2024.
CONFERENCE CALL
The Company will conduct a conference call/webcast at 1:30 PM Eastern Time on Thursday, July 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/629150850. 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 611840). 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: 134147.
ABOUT BROOKLINE BANCORP, INC.
Brookline Bancorp, Inc., a bank holding company with $11.6 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 June 30,
2024March 31,
2024December 31,
2023September 30,
2023June 30,
2023(Dollars In Thousands Except per Share Data) Earnings Data: Net interest income $ 80,001 $ 81,588 $ 83,555 $ 84,070 $ 86,037 Provision for credit losses on loans 5,607 7,423 3,851 2,947 5,726 Provision (credit) for credit losses on investments (39 ) (44 ) (76 ) 84 133 Non-interest income 6,396 6,284 8,027 5,508 5,462 Non-interest expense 59,184 61,014 59,244 57,679 57,825 Income before provision for income taxes 21,645 19,479 28,563 28,868 27,815 Net income 16,372 14,665 22,888 22,701 21,850 Performance Ratios: Net interest margin (1) 3.00 % 3.06 % 3.15 % 3.18 % 3.26 % Interest-rate spread (1) 2.14 % 2.21 % 2.39 % 2.45 % 2.51 % Return on average assets (annualized) 0.57 % 0.51 % 0.81 % 0.81 % 0.78 % Return on average tangible assets (annualized) (non-GAAP) 0.59 % 0.53 % 0.83 % 0.83 % 0.79 % Return on average stockholders' equity (annualized) 5.49 % 4.88 % 7.82 % 7.78 % 7.44 % Return on average tangible stockholders' equity (annualized) (non-GAAP) 7.04 % 6.26 % 10.12 % 10.09 % 9.67 % Efficiency ratio (2) 68.50 % 69.44 % 64.69 % 64.39 % 63.20 % Per Common Share Data: Net income — Basic $ 0.18 $ 0.16 $ 0.26 $ 0.26 $ 0.25 Net income — Diluted 0.18 0.16 0.26 0.26 0.25 Cash dividends declared 0.135 0.135 0.135 0.135 0.135 Book value per share (end of period) 13.48 13.43 13.48 13.03 13.11 Tangible book value per share (end of period) (non-GAAP) 10.53 10.47 10.50 10.02 10.07 Stock price (end of period) 8.35 9.96 10.91 9.11 8.74 Balance Sheet: Total assets $ 11,635,292 $ 11,542,731 $ 11,382,256 $ 11,180,555 $ 11,206,078 Total loans and leases 9,721,137 9,655,086 9,641,589 9,380,782 9,340,799 Total deposits 8,737,036 8,718,653 8,548,125 8,566,013 8,517,013 Total stockholders’ equity 1,198,480 1,194,231 1,198,644 1,157,871 1,162,308 Asset Quality: Nonperforming assets $ 62,683 $ 42,489 $ 45,324 $ 51,540 $ 46,925 Nonperforming assets as a percentage of total assets 0.54 % 0.37 % 0.40 % 0.46 % 0.42 % Allowance for loan and lease losses $ 121,750 $ 120,124 $ 117,522 $ 119,081 $ 125,817 Allowance for loan and lease losses as a percentage of total loans and leases 1.25 % 1.24 % 1.22 % 1.27 % 1.35 % Net loan and lease charge-offs $ 8,387 $ 8,781 $ 7,141 $ 10,974 $ 1,097 Net loan and lease charge-offs as a percentage of average loans and leases (annualized) 0.35 % 0.36 % 0.30 % 0.47 % 0.05 % Capital Ratios: Stockholders’ equity to total assets 10.30 % 10.35 % 10.53 % 10.36 % 10.37 % Tangible stockholders’ equity to tangible assets (non-GAAP) 8.23 % 8.25 % 8.39 % 8.16 % 8.16 % (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,
2024March 31,
2024December 31,
2023September 30,
2023June 30,
2023ASSETS (In Thousands Except Share Data) Cash and due from banks $ 60,067 $ 45,708 $ 34,514 $ 33,506 $ 44,323 Short-term investments 283,017 256,178 98,513 127,495 180,109 Total cash and cash equivalents 343,084 301,886 133,027 161,001 224,432 Investment securities available-for-sale 856,439 865,798 916,601 880,412 910,210 Total investment securities 856,439 865,798 916,601 880,412 910,210 Allowance for investment security losses (359 ) (398 ) (441 ) (517 ) (433 ) Net investment securities 856,080 865,400 916,160 879,895 909,777 Loans and leases held-for-sale — 6,717 — — — Loans and leases: Commercial real estate loans 5,782,111 5,755,239 5,764,529 5,669,768 5,670,771 Commercial loans and leases 2,443,530 2,416,904 2,399,668 2,241,375 2,193,027 Consumer loans 1,495,496 1,482,943 1,477,392 1,469,639 1,477,001 Total loans and leases 9,721,137 9,655,086 9,641,589 9,380,782 9,340,799 Allowance for loan and lease losses (121,750 ) (120,124 ) (117,522 ) (119,081 ) (125,817 ) Net loans and leases 9,599,387 9,534,962 9,524,067 9,261,701 9,214,982 Restricted equity securities 78,963 74,709 77,595 65,460 71,421 Premises and equipment, net of accumulated depreciation 88,378 89,707 89,853 90,476 90,685 Right-of-use asset operating leases 35,691 33,133 30,863 31,619 31,774 Deferred tax asset 60,032 60,484 56,952 74,491 77,704 Goodwill 241,222 241,222 241,222 241,222 241,222 Identified intangible assets, net of accumulated amortization 20,830 22,499 24,207 26,172 28,126 Other real estate owned and repossessed assets 1,974 1,817 1,694 299 602 Other assets 309,651 310,195 286,616 348,219 315,353 Total assets $ 11,635,292 $ 11,542,731 $ 11,382,256 $ 11,180,555 $ 11,206,078 LIABILITIES AND STOCKHOLDERS' EQUITY Deposits: Demand checking accounts $ 1,638,378 $ 1,629,371 $ 1,678,406 $ 1,745,137 $ 1,843,516 NOW accounts 647,370 654,748 661,863 647,476 699,119 Savings accounts 1,735,857 1,727,893 1,669,018 1,625,804 1,464,054 Money market accounts 2,073,557 2,065,569 2,082,810 2,161,359 2,166,570 Certificate of deposit accounts 1,718,414 1,670,147 1,574,855 1,491,844 1,410,905 Brokered deposit accounts 923,460 970,925 881,173 894,393 932,849 Total deposits 8,737,036 8,718,653 8,548,125 8,566,013 8,517,013 Borrowed funds: Advances from the FHLB 1,265,079 1,150,153 1,223,226 899,304 1,043,381 Subordinated debentures and notes 84,258 84,223 84,188 84,152 84,116 Other borrowed funds 80,125 127,505 69,256 151,612 98,773 Total borrowed funds 1,429,462 1,361,881 1,376,670 1,135,068 1,226,270 Operating lease liabilities 37,102 34,235 31,998 32,807 33,021 Mortgagors’ escrow accounts 17,117 16,245 17,239 12,578 17,207 Reserve for unfunded credits 11,400 15,807 19,767 21,497 22,789 Accrued expenses and other liabilities 204,695 201,679 189,813 254,721 227,470 Total liabilities 10,436,812 10,348,500 10,183,612 10,022,684 10,043,770 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 904,775 903,726 902,659 901,376 905,084 Retained earnings 445,560 441,285 438,722 427,937 417,328 Accumulated other comprehensive income (61,693 ) (60,841 ) (52,798 ) (81,541 ) (66,156 ) Treasury stock, at cost; 7,373,009, 7,354,399, 7,354,399, 7,350,981 and 7,734,891 shares, respectively (91,132 ) (90,909 ) (90,909 ) (90,871 ) (94,918 ) Total stockholders' equity 1,198,480 1,194,231 1,198,644 1,157,871 1,162,308 Total liabilities and stockholders' equity $ 11,635,292 $ 11,542,731 $ 11,382,256 $ 11,180,555 $ 11,206,078 BROOKLINE BANCORP, INC. AND SUBSIDIARIES Consolidated Statements of Income (Unaudited) Three Months Ended June 30,
2024March 31,
2024December 31,
2023September 30,
2023June 30,
2023(In Thousands Except Share Data) Interest and dividend income: Loans and leases $ 145,585 $ 145,265 $ 142,948 $ 136,561 $ 132,299 Debt securities 6,480 6,878 6,945 6,799 8,034 Restricted equity securities 1,376 1,492 1,333 1,310 1,673 Short-term investments 1,914 1,824 1,093 2,390 3,351 Total interest and dividend income 155,355 155,459 152,319 147,060 145,357 Interest expense: Deposits 59,721 56,884 54,034 49,116 43,147 Borrowed funds 15,633 16,987 14,730 13,874 16,173 Total interest expense 75,354 73,871 68,764 62,990 59,320 Net interest income 80,001 81,588 83,555 84,070 86,037 Provision for credit losses on loans 5,607 7,423 3,851 2,947 5,726 Provision (credit) for credit losses on investments (39 ) (44 ) (76 ) 84 133 Net interest income after provision for credit losses 74,433 74,209 79,780 81,039 80,178 Non-interest income: Deposit fees 3,001 2,897 3,064 3,024 2,866 Loan fees 702 789 515 639 491 Loan level derivative income, net 106 437 778 376 363 Gain on investment securities, net — — — — 3 Gain on sales of loans and leases held-for-sale 130 — 410 225 308 Other 2,457 2,161 3,260 1,244 1,431 Total non-interest income 6,396 6,284 8,027 5,508 5,462 Non-interest expense: Compensation and employee benefits 34,762 36,629 35,401 33,491 33,438 Occupancy 5,551 5,769 5,127 4,983 4,870 Equipment and data processing 6,732 7,031 7,245 6,766 6,531 Professional services 1,745 1,900 1,442 2,368 1,986 FDIC insurance 2,025 1,884 1,839 2,152 2,609 Advertising and marketing 1,504 1,574 758 1,174 1,382 Amortization of identified intangible assets 1,669 1,708 1,965 1,955 1,954 Merger and restructuring expense 823 — — — 1,002 Other 4,373 4,519 5,467 4,790 4,053 Total non-interest expense 59,184 61,014 59,244 57,679 57,825 Income before provision for income taxes 21,645 19,479 28,563 28,868 27,815 Provision for income taxes 5,273 4,814 5,675 6,167 5,965 Net income $ 16,372 $ 14,665 $ 22,888 $ 22,701 $ 21,850 Earnings per common share: Basic $ 0.18 $ 0.16 $ 0.26 $ 0.26 $ 0.25 Diluted $ 0.18 $ 0.16 $ 0.26 $ 0.26 $ 0.25 Weighted average common shares outstanding during the period: Basic 88,904,692 88,894,577 88,867,159 88,795,270 88,665,135 Diluted 89,222,315 89,181,508 89,035,505 88,971,210 88,926,543 Dividends paid per common share $ 0.135 $ 0.135 $ 0.135 $ 0.135 $ 0.135 BROOKLINE BANCORP, INC. AND SUBSIDIARIES Consolidated Statements of Income (Unaudited) Six Months Ended June 30, 2024 2023 (In Thousands Except Share Data) Interest and dividend income: Loans and leases $ 290,850 $ 254,230 Debt securities 13,358 15,904 Restricted equity securities 2,868 2,928 Short-term investments 3,738 4,846 Total interest and dividend income 310,814 277,908 Interest expense: Deposits 116,605 72,515 Borrowed funds 32,620 33,307 Total interest expense 149,225 105,822 Net interest income 161,589 172,086 Provision for credit losses on loans 13,030 31,070 Provision (credit) for credit losses on investments (83 ) 331 Net interest income after provision for credit losses 148,642 140,685 Non-interest income: Deposit Fees 5,898 5,523 Loan Fees 1,491 882 Loan level derivative income, net 543 2,736 Gain on investment securities, net — 1,704 Gain on sales of loans and leases held-for-sale 130 1,946 Other 4,618 5,608 Total non-interest income 12,680 18,399 Non-interest expense: Compensation and employee benefits 71,391 70,003 Occupancy 11,320 10,093 Equipment and data processing 13,763 12,993 Professional services 3,645 3,416 FDIC insurance 3,909 3,853 Advertising and marketing 3,078 2,792 Amortization of identified intangible assets 3,377 3,920 Merger and restructuring expense 823 7,411 Other 8,892 8,120 Total non-interest expense 120,198 122,601 Income before provision for income taxes 41,124 36,483 Provision for income taxes 10,087 7,073 Net income $ 31,037 $ 29,410 Earnings per common share: Basic $ 0.35 $ 0.34 Diluted $ 0.35 $ 0.34 Weighted average common shares outstanding during the period: Basic 88,899,635 87,620,194 Diluted 89,201,912 87,887,980 Dividends paid per common share $ 0.270 $ 0.270 BROOKLINE BANCORP, INC. AND SUBSIDIARIES Asset Quality Analysis (Unaudited) At and for the Three Months Ended June 30,
2024March 31,
2024December 31,
2023September 30,
2023June 30,
2023(Dollars in Thousands) NONPERFORMING ASSETS: Loans and leases accounted for on a nonaccrual basis: Commercial real estate mortgage $ 11,659 $ 18,394 $ 19,608 $ 23,263 $ 8,737 Multi-family mortgage — — — 1,318 — Construction — — — 2,316 3,828 Total commercial real estate loans 11,659 18,394 19,608 26,897 12,565 Commercial 16,636 3,096 3,886 5,406 16,023 Equipment financing 27,128 13,668 14,984 13,974 12,809 Condominium association — — — — — Total commercial loans and leases 43,764 16,764 18,870 19,380 28,832 Residential mortgage 4,495 4,563 4,292 4,249 4,343 Home equity 790 950 860 713 583 Other consumer 1 1 — 2 — Total consumer loans 5,286 5,514 5,152 4,964 4,926 Total nonaccrual loans and leases 60,709 40,672 43,630 51,241 46,323 Other real estate owned 780 780 780 — — Other repossessed assets 1,194 1,037 914 299 602 Total nonperforming assets $ 62,683 $ 42,489 $ 45,324 $ 51,540 $ 46,925 Loans and leases past due greater than 90 days and still accruing $ 4,994 $ 363 $ 228 $ 1,175 $ 490 Nonperforming loans and leases as a percentage of total loans and leases 0.62 % 0.42 % 0.45 % 0.55 % 0.50 % Nonperforming assets as a percentage of total assets 0.54 % 0.37 % 0.40 % 0.46 % 0.42 % PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES: Allowance for loan and lease losses at beginning of period $ 120,124 $ 117,522 $ 119,081 $ 125,817 $ 120,865 Charge-offs (8,823 ) (5,390 ) (7,722 ) (10,978 ) (1,690 ) Recoveries 436 309 581 4 593 Net charge-offs (8,387 ) (5,081 ) (7,141 ) (10,974 ) (1,097 ) Provision for loan and lease losses excluding unfunded commitments * 10,013 7,683 5,582 4,238 6,049 Allowance for loan and lease losses at end of period $ 121,750 $ 120,124 $ 117,522 $ 119,081 $ 125,817 Allowance for loan and lease losses as a percentage of total loans and leases 1.25 % 1.24 % 1.22 % 1.27 % 1.35 % NET CHARGE-OFFS: Commercial real estate loans $ 3,819 $ 606 $ 1,087 $ (3 ) $ (6 ) Commercial loans and leases ** 4,571 8,179 6,061 10,958 1,108 Consumer loans (3 ) (4 ) (7 ) 19 (5 ) Total net charge-offs $ 8,387 $ 8,781 $ 7,141 $ 10,974 $ 1,097 Net loan and lease charge-offs as a percentage of average loans and leases (annualized) 0.35 % 0.36 % 0.30 % 0.47 % 0.05 % *Provision for loan and lease losses does not include (credit) provision of $(4.4 million), $(0.3 million), $(1.7 million), $(1.3 million), and $(0.3) million for credit losses on unfunded commitments during the three months ended June 30, 2024, March 31, 2024, December 31, 2023, September 30, 2023, and June 30, 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 June 30, 2024 March 31, 2024 June 30, 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) $ 846,469 $ 6,510 3.08 % $ 893,228 $ 6,927 3.10 % $ 1,000,440 $ 8,091 3.23 % Restricted equity securities (2) 71,696 1,375 7.67 % 76,335 1,493 7.82 % 77,364 1,673 8.65 % Short-term investments 143,800 1,914 5.33 % 130,768 1,824 5.58 % 229,474 3,351 5.84 % Total investments 1,061,965 9,799 3.69 % 1,100,331 10,244 3.72 % 1,307,278 13,115 4.01 % Loans and Leases: Commercial real estate loans (3) 5,754,901 81,565 5.61 % 5,761,735 81,049 5.56 % 5,640,491 79,582 5.58 % Commercial loans (3) 1,069,154 17,672 6.54 % 1,026,467 17,507 6.75 % 913,732 13,502 5.85 % Equipment financing (3) 1,374,217 26,255 7.64 % 1,374,426 26,895 7.83 % 1,253,199 22,357 7.14 % Consumer loans (3) 1,488,587 20,291 5.46 % 1,482,819 19,978 5.40 % 1,482,799 16,903 4.56 % Total loans and leases 9,686,859 145,783 6.02 % 9,645,447 145,429 6.03 % 9,290,221 132,344 5.70 % Total interest-earning assets 10,748,824 155,582 5.79 % 10,745,778 155,673 5.79 % 10,597,499 145,459 5.49 % Non-interest-earning assets 704,570 671,407 675,173 Total assets $ 11,453,394 $ 11,417,185 $ 11,272,672 Liabilities and Stockholders' Equity: Interest-bearing liabilities: Deposits: NOW accounts $ 659,351 1,111 0.68 % $ 671,914 1,261 0.75 % $ 735,001 1,069 0.58 % Savings accounts 1,731,388 11,874 2.76 % 1,694,220 11,352 2.69 % 1,374,337 5,917 1.73 % Money market accounts 2,026,780 15,520 3.08 % 2,076,303 15,954 3.09 % 2,140,522 13,989 2.62 % Certificates of deposit 1,699,510 18,717 4.43 % 1,624,118 16,672 4.13 % 1,390,913 10,021 2.89 % Brokered deposit accounts 958,146 12,499 5.25 % 896,784 11,645 5.22 % 975,700 12,151 5.00 % Total interest-bearing deposits 7,075,175 59,721 3.39 % 6,963,339 56,884 3.29 % 6,616,473 43,147 2.62 % Borrowings Advances from the FHLB 1,049,609 12,894 4.86 % 1,164,534 14,633 4.97 % 1,191,424 14,287 4.74 % Subordinated debentures and notes 84,241 1,375 6.53 % 84,206 1,377 6.54 % 84,098 1,363 6.49 % Other borrowed funds 103,753 1,364 5.29 % 93,060 977 4.22 % 86,896 523 2.41 % Total borrowings 1,237,603 15,633 5.00 % 1,341,800 16,987 5.01 % 1,362,418 16,173 4.70 % Total interest-bearing liabilities 8,312,778 75,354 3.65 % 8,305,139 73,871 3.58 % 7,978,891 59,320 2.98 % Non-interest-bearing liabilities: Demand checking accounts 1,646,869 1,631,472 1,849,393 Other non-interest-bearing liabilities 300,362 278,670 270,221 Total liabilities 10,260,009 10,215,281 10,098,505 Stockholders’ equity 1,193,385 1,201,904 1,174,167 Total liabilities and equity $ 11,453,394 $ 11,417,185 $ 11,272,672 Net interest income (tax-equivalent basis) /Interest-rate spread (4) 80,228 2.14 % 81,802 2.21 % 86,139 2.51 % Less adjustment of tax-exempt income 227 214 102 Net interest income $ 80,001 $ 81,588 $ 86,037 Net interest margin (5) 3.00 % 3.06 % 3.26 % (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, 2024 June 30, 2023 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) $ 869,848 $ 13,437 3.09 % $ 1,014,675 $ 16,065 3.17 % Restricted equity securities (2) 74,015 2,868 7.75 % 77,139 2,928 7.59 % Short-term investments 137,284 3,738 5.45 % 188,790 4,846 5.13 % Total investments 1,081,147 20,043 3.71 % 1,280,604 23,839 3.72 % Loans and Leases: Commercial real estate loans (3) 5,758,318 162,614 5.59 % 5,610,401 147,249 5.22 % Commercial loans (3) 1,047,810 35,179 6.64 % 903,185 27,519 6.06 % Equipment financing (3) 1,374,322 53,150 7.73 % 1,240,031 43,570 7.03 % Consumer loans (3) 1,485,702 40,269 5.43 % 1,467,521 35,973 4.91 % Total loans and leases 9,666,152 291,212 6.03 % 9,221,138 254,311 5.52 % Total interest-earning assets 10,747,299 311,255 5.79 % 10,501,742 278,150 5.30 % Non-interest-earning assets 684,343 700,529 Total assets $ 11,431,642 $ 11,202,271 Liabilities and Stockholders' Equity: Interest-bearing liabilities: Deposits: NOW accounts $ 665,632 2,372 0.72 % $ 772,459 1,970 0.51 % Savings accounts 1,712,804 23,226 2.73 % 1,267,762 8,431 1.34 % Money market accounts 2,051,542 31,474 3.09 % 2,252,755 26,129 2.34 % Certificates of deposit 1,661,814 35,389 4.28 % 1,368,959 17,477 2.57 % Brokered deposit accounts 927,465 24,144 5.23 % 756,332 18,508 4.93 % Total interest-bearing deposits 7,019,257 116,605 3.34 % 6,418,267 72,515 2.28 % Borrowings Advances from the FHLB 1,107,071 27,527 4.92 % 1,227,772 28,818 4.67 % Subordinated debentures and notes 84,223 2,752 6.54 % 84,080 2,717 6.46 % Other borrowed funds 98,406 2,341 4.78 % 122,500 1,772 2.92 % Total borrowings 1,289,700 32,620 5.00 % 1,434,352 33,307 4.62 % Total interest-bearing liabilities 8,308,957 149,225 3.61 % 7,852,619 105,822 2.72 % Non-interest-bearing liabilities: Demand checking accounts 1,635,690 1,889,554 Other non-interest-bearing liabilities 289,351 293,157 Total liabilities 10,233,998 10,035,330 Stockholders’ equity 1,197,644 1,166,941 Total liabilities and equity $ 11,431,642 $ 11,202,271 Net interest income (tax-equivalent basis) /Interest-rate spread (4) 162,030 2.18 % 172,328 2.58 % Less adjustment of tax-exempt income 441 242 Net interest income $ 161,589 $ 172,086 Net interest margin (5) 3.03 % 3.31 % (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, 2024 2023 2024 2023 Reconciliation Table - Non-GAAP Financial Information (Dollars in Thousands Except Share Data) (Dollars in Thousands Except Share Data) Reported Pretax Income $ 21,645 $ 27,815 $ 41,124 $ 36,483 Less: Security gains — 3 — 1,704 Add: Day 1 PCSB CECL provision — — — 16,744 Merger and restructuring expense 823 1,002 823 7,411 Operating Pretax Income $ 22,468 $ 28,814 $ 41,947 $ 58,934 Effective tax rate 24.4 % 19.4 % 24.5 % 19.4 % Provision for income taxes 5,473 5,587 10,289 11,427 Operating earnings after tax $ 16,995 $ 23,227 $ 31,658 $ 47,507 Operating earnings per common share: Basic $ 0.19 $ 0.26 $ 0.36 $ 0.54 Diluted $ 0.19 $ 0.26 $ 0.35 $ 0.54 Weighted average common shares outstanding during the period: Basic 88,904,692 88,665,135 88,899,635 87,620,194 Diluted 89,222,315 88,926,543 89,201,912 87,887,980 Return on average assets * 0.57 % 0.78 % 0.54 % 0.53 % Less: Security gains (after-tax) * — % — % — % 0.02 % Add: Day 1 PCSB CECL provision (after-tax) * — % — % — % 0.24 % Merger and restructuring expense (after-tax) * 0.02 % 0.03 % 0.01 % 0.11 % Operating return on average assets * 0.59 % 0.81 % 0.55 % 0.86 % Return on average tangible assets * 0.59 % 0.79 % 0.56 % 0.54 % Less: Security gains (after-tax) * — % — % — % 0.03 % Add: Day 1 PCSB CECL provision (after-tax) * — % — % — % 0.25 % Merger and restructuring expense (after-tax) * 0.02 % 0.03 % 0.01 % 0.11 % Operating return on average tangible assets * 0.61 % 0.82 % 0.57 % 0.87 % Return on average stockholders' equity * 5.49 % 7.44 % 5.18 % 5.04 % Less: Security gains (after-tax) * — % — % — % 0.24 % Add: Day 1 PCSB CECL provision (after-tax) * — % — % — % 2.31 % Merger and restructuring expense (after-tax) * 0.21 % 0.28 % 0.10 % 1.02 % Operating return on average stockholders' equity * 5.70 % 7.72 % 5.28 % 8.13 % Return on average tangible stockholders' equity * 7.04 % 9.67 % 6.65 % 6.59 % Less: Security gains (after-tax) * — % — % — % 0.31 % Add: Day 1 PCSB CECL provision (after-tax) * — % — % — % 3.02 % Merger and restructuring expense (after-tax) * 0.27 % 0.36 % 0.13 % 1.34 % Operating return on average tangible stockholders' equity * 7.31 % 10.03 % 6.78 % 10.64 % * Ratios at and for the three months and six months ended are annualized. At and for the Three Months Ended June 30,
2024March 31,
2024December 31,
2023September 30,
2023June 30,
2023(Dollars in Thousands) Net income, as reported $ 16,372 $ 14,665 $ 22,888 $ 22,701 $ 21,850 Average total assets $ 11,453,394 $ 11,417,185 $ 11,271,941 $ 11,180,635 $ 11,272,672 Less: Average goodwill and average identified intangible assets, net 262,859 264,536 266,225 268,199 270,147 Average tangible assets $ 11,190,535 $ 11,152,649 $ 11,005,716 $ 10,912,436 $ 11,002,525 Return on average tangible assets (annualized) 0.59 % 0.53 % 0.83 % 0.83 % 0.79 % Average total stockholders’ equity $ 1,193,385 $ 1,201,904 $ 1,170,776 $ 1,167,727 $ 1,174,167 Less: Average goodwill and average identified intangible assets, net 262,859 264,536 266,225 268,199 270,147 Average tangible stockholders’ equity $ 930,526 $ 937,368 $ 904,551 $ 899,528 $ 904,020 Return on average tangible stockholders’ equity (annualized) 7.04 % 6.26 % 10.12 % 10.09 % 9.67 % Total stockholders’ equity $ 1,198,480 $ 1,194,231 $ 1,198,644 $ 1,157,871 $ 1,162,308 Less: Goodwill 241,222 241,222 241,222 241,222 241,222 Identified intangible assets, net 20,830 22,499 24,207 26,172 28,126 Tangible stockholders' equity $ 936,428 $ 930,510 $ 933,215 $ 890,477 $ 892,960 Total assets $ 11,635,292 $ 11,542,731 $ 11,382,256 $ 11,180,555 $ 11,206,078 Less: Goodwill 241,222 241,222 241,222 241,222 241,222 Identified intangible assets, net 20,830 22,499 24,207 26,172 28,126 Tangible assets $ 11,373,240 $ 11,279,010 $ 11,116,827 $ 10,913,161 $ 10,936,730 Tangible stockholders’ equity to tangible assets 8.23 % 8.25 % 8.39 % 8.16 % 8.16 % Tangible stockholders' equity $ 936,428 $ 930,510 $ 933,215 $ 890,477 $ 892,960 Number of common shares issued 96,998,075 96,998,075 96,998,075 96,998,075 96,998,075 Less: Treasury shares 7,373,009 7,354,399 7,354,399 7,350,981 7,734,891 Unvested restricted shares 713,443 749,099 749,099 780,859 598,049 Number of common shares outstanding 88,911,623 88,894,577 88,894,577 88,866,235 88,665,135 Tangible book value per common share $ 10.53 $ 10.47 $ 10.50 $ 10.02 $ 10.07 PDF available: http://ml.globenewswire.com/Resource/Download/2a9f9df5-7fac-4867-b4fd-0b3511d0152c