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Brookline Bancorp Announces Third Quarter Results
来源: Nasdaq GlobeNewswire / 23 10月 2024 16:15:51 America/New_York
Net Income of $20.1 million, EPS of $0.23
Quarterly Dividend of $0.135
BOSTON, Oct. 23, 2024 (GLOBE NEWSWIRE) -- Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced net income and operating earnings after tax (non-GAAP) of $20.1 million, or $0.23 per basic and diluted share, for the third quarter of 2024, compared to 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, and net income and operating earnings after tax (non-GAAP) of $22.7 million, or $0.26 per basic and diluted share, for the third quarter of 2023.
“Our Company experienced improved performance in the third quarter,” commented Paul Perrault, Chairman and CEO, who continued, “As we move into the final months of 2024, we are confident our experienced bankers' ability to continue to deliver exceptional service to our customers will be better reflected in our profitability as interest rates normalize.”
BALANCE SHEET
Total assets at September 30, 2024 were $11.7 billion, representing an increase of $41.4 million from $11.6 billion at June 30, 2024, and an increase of $496.2 million from September 30, 2023. At September 30, 2024, total loans and leases were $9.8 billion, representing an increase of $34.1 million from June 30, 2024, and an increase of $374.5 million from September 30, 2023.
Total investment securities at September 30, 2024 decreased $1.0 million to $855.4 million from $856.4 million at June 30, 2024, and decreased $25.0 million from $880.4 million at September 30, 2023. Total cash and cash equivalents at September 30, 2024 increased $64.8 million to $407.9 million from $343.1 million at June 30, 2024, and increased $246.9 million from $161.0 million at September 30, 2023. As of September 30, 2024, total investment securities and total cash and cash equivalents represented 10.8 percent of total assets, compared to 10.3 percent and 9.3 percent as of June 30, 2024 and September 30, 2023, respectively.
Total deposits at September 30, 2024 decreased $4.8 million to $8.7 billion from June 30, 2024. Despite the decrease during the quarter, customer deposits increased $103.2 million, offset by a $107.9 million decrease in brokered deposits. Total deposits increased $166.3 million from $8.6 billion at September 30, 2023, primarily driven by growth in customer deposits. The increase in customer deposits quarter to date included a $43.5 million increase in demand checking accounts.
Total borrowed funds at September 30, 2024 increased $68.1 million to $1.5 billion from June 30, 2024, and increased $362.5 million from $1.1 billion at September 30, 2023.
The ratio of stockholders’ equity to total assets was 10.54 percent at September 30, 2024, compared to 10.30 percent at June 30, 2024, and 10.36 percent at September 30, 2023. The ratio of tangible stockholders’ equity to tangible assets (non-GAAP) was 8.50 percent at September 30, 2024, as compared to 8.23 percent at June 30, 2024, and 8.16 percent at September 30, 2023. Tangible book value per common share (non-GAAP) increased $0.36 from $10.53 at June 30, 2024 to $10.89 at September 30, 2024, and increased $0.87 from $10.02 at September 30, 2023.
NET INTEREST INCOME
Net interest income increased $3.0 million to $83.0 million during the third quarter of 2024 from $80.0 million for the quarter ended June 30, 2024. The net interest margin increased 7 basis points to 3.07 percent for the three months ended September 30, 2024 from 3.00 percent for the three months ended June 30, 2024, primarily driven by higher yields on loans and leases partially offset by higher funding costs.
NON-INTEREST INCOME
Total non-interest income for the quarter ended September 30, 2024 decreased $0.1 million to $6.3 million from $6.4 million for the quarter ended June 30, 2024.
PROVISION FOR CREDIT LOSSES
The Company recorded a provision for credit losses of $4.8 million for the quarter ended September 30, 2024, compared to $5.6 million for the quarter ended June 30, 2024. The decrease in provision was largely driven by improving economic forecasts partially offset by an increase in specific reserves on nonperforming credits.
Total net charge-offs for the third quarter of 2024 were $3.8 million, compared to $8.4 million in the second quarter of 2024. The $3.8 million in net charge-offs was driven by $2.6 million in equipment financing, largely within specialty vehicle. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis decreased to 16 basis points for the third quarter of 2024 from 35 basis points for the second quarter of 2024.
The allowance for loan and lease losses represented 1.31 percent of total loans and leases at September 30, 2024, compared to 1.25 percent at June 30, 2024, and 1.27 percent at September 30, 2023.
ASSET QUALITY
The ratio of nonperforming loans and leases to total loans and leases was 0.73 percent at September 30, 2024, an increase from 0.62 percent at June 30, 2024. Total nonaccrual loans and leases increased $10.5 million to $71.2 million at September 30, 2024 from $60.7 million at June 30, 2024. The increase was driven by one equipment financing relationship of $9.3 million which has been reserved at 55 percent. The ratio of nonperforming assets to total assets was 0.62 percent at September 30, 2024, an increase from 0.54 percent at June 30, 2024. Total nonperforming assets increased $10.1 million to $72.8 million at September 30, 2024 from $62.7 million at June 30, 2024.
NON-INTEREST EXPENSE
Non-interest expense for the quarter ended September 30, 2024 decreased $1.2 million to $57.9 million from $59.2 million for the quarter ended June 30, 2024. Excluding the one time restructuring charge taken in the second quarter of $0.8 million, non-interest expense decreased $0.4 million primarily due to a reduction in advertising and marketing expense.
PROVISION FOR INCOME TAXES
The effective tax rate was 24.7 percent and 24.6 percent for the three and nine months ended September 30, 2024 compared to 24.4 percent for the three months ended June 30, 2024 and 21.4 percent and 20.3 percent for the three and nine months ended September 30, 2023.
RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY
The annualized return on average assets increased to 0.70 percent during the third quarter 2024 from 0.57 percent for the second quarter of 2024.
The annualized return on average stockholders' equity increased to 6.63 percent during the third quarter of 2024 from 5.49 percent for the second quarter of 2024. The annualized return on average tangible stockholders’ equity increased to 8.44 percent for the third quarter of 2024 from 7.04 percent for the second quarter of 2024.
DIVIDEND DECLARED
The Company’s Board of Directors approved a dividend of $0.135 per share for the quarter ended September 30, 2024. The dividend will be paid on November 29, 2024 to stockholders of record on November 15, 2024.
CONFERENCE CALL
The Company will conduct a conference call/webcast at 1:30 PM Eastern Time on Thursday, October 24, 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/314623001. 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 414186). 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: 898921.
ABOUT BROOKLINE BANCORP, INC.
Brookline Bancorp, Inc., a bank holding company with $11.7 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 September 30,
2024June 30,
2024March 31,
2024December 31,
2023September 30,
2023(Dollars In Thousands Except per Share Data) Earnings Data: Net interest income $ 83,008 $ 80,001 $ 81,588 $ 83,555 $ 84,070 Provision for credit losses on loans 4,832 5,607 7,423 3,851 2,947 Provision (credit) for credit losses on investments (172) (39) (44) (76) 84 Non-interest income 6,348 6,396 6,284 8,027 5,508 Non-interest expense 57,948 59,184 61,014 59,244 57,679 Income before provision for income taxes 26,748 21,645 19,479 28,563 28,868 Net income 20,142 16,372 14,665 22,888 22,701 Performance Ratios: Net interest margin (1) 3.07 % 3.00 % 3.06 % 3.15 % 3.18 % Interest-rate spread (1) 2.26 % 2.14 % 2.21 % 2.39 % 2.45 % Return on average assets (annualized) 0.70 % 0.57 % 0.51 % 0.81 % 0.81 % Return on average tangible assets (annualized) (non-GAAP) 0.72 % 0.59 % 0.53 % 0.83 % 0.83 % Return on average stockholders' equity (annualized) 6.63 % 5.49 % 4.88 % 7.82 % 7.78 % Return on average tangible stockholders' equity (annualized) (non-GAAP) 8.44 % 7.04 % 6.26 % 10.12 % 10.09 % Efficiency ratio (2) 64.85 % 68.50 % 69.44 % 64.69 % 64.39 % Per Common Share Data: Net income — Basic $ 0.23 $ 0.18 $ 0.16 $ 0.26 $ 0.26 Net income — Diluted 0.23 0.18 0.16 0.26 0.26 Cash dividends declared 0.135 0.135 0.135 0.135 0.135 Book value per share (end of period) 13.81 13.48 13.43 13.48 13.03 Tangible book value per share (end of period) (non-GAAP) 10.89 10.53 10.47 10.50 10.02 Stock price (end of period) 10.09 8.35 9.96 10.91 9.11 Balance Sheet: Total assets $ 11,676,721 $ 11,635,292 $ 11,542,731 $ 11,382,256 $ 11,180,555 Total loans and leases 9,755,236 9,721,137 9,655,086 9,641,589 9,380,782 Total deposits 8,732,271 8,737,036 8,718,653 8,548,125 8,566,013 Total stockholders’ equity 1,230,362 1,198,480 1,194,231 1,198,644 1,157,871 Asset Quality: Nonperforming assets $ 72,821 $ 62,683 $ 42,489 $ 45,324 $ 51,540 Nonperforming assets as a percentage of total assets 0.62 % 0.54 % 0.37 % 0.40 % 0.46 % Allowance for loan and lease losses $ 127,316 $ 121,750 $ 120,124 $ 117,522 $ 119,081 Allowance for loan and lease losses as a percentage of total loans and leases 1.31 % 1.25 % 1.24 % 1.22 % 1.27 % Net loan and lease charge-offs $ 3,808 $ 8,387 $ 8,781 $ 7,141 $ 10,974 Net loan and lease charge-offs as a percentage of average loans and leases (annualized) 0.16 % 0.35 % 0.36 % 0.30 % 0.47 % Capital Ratios: Stockholders’ equity to total assets 10.54 % 10.30 % 10.35 % 10.53 % 10.36 % Tangible stockholders’ equity to tangible assets (non-GAAP) 8.50 % 8.23 % 8.25 % 8.39 % 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)September 30,
2024June 30,
2024March 31,
2024December 31,
2023September 30,
2023ASSETS (In Thousands Except Share Data) Cash and due from banks $ 82,168 $ 60,067 $ 45,708 $ 34,514 $ 33,506 Short-term investments 325,721 283,017 256,178 98,513 127,495 Total cash and cash equivalents 407,889 343,084 301,886 133,027 161,001 Investment securities available-for-sale 855,391 856,439 865,798 916,601 880,412 Total investment securities 855,391 856,439 865,798 916,601 880,412 Allowance for investment security losses (186 ) (359 ) (398 ) (441 ) (517 ) Net investment securities 855,205 856,080 865,400 916,160 879,895 Loans and leases held-for-sale — — 6,717 — — Loans and leases: Commercial real estate loans 5,779,290 5,782,111 5,755,239 5,764,529 5,669,768 Commercial loans and leases 2,453,038 2,443,530 2,416,904 2,399,668 2,241,375 Consumer loans 1,522,908 1,495,496 1,482,943 1,477,392 1,469,639 Total loans and leases 9,755,236 9,721,137 9,655,086 9,641,589 9,380,782 Allowance for loan and lease losses (127,316 ) (121,750 ) (120,124 ) (117,522 ) (119,081 ) Net loans and leases 9,627,920 9,599,387 9,534,962 9,524,067 9,261,701 Restricted equity securities 82,675 78,963 74,709 77,595 65,460 Premises and equipment, net of accumulated depreciation 86,925 88,378 89,707 89,853 90,476 Right-of-use asset operating leases 41,934 35,691 33,133 30,863 31,619 Deferred tax asset 50,827 60,032 60,484 56,952 74,491 Goodwill 241,222 241,222 241,222 241,222 241,222 Identified intangible assets, net of accumulated amortization 19,162 20,830 22,499 24,207 26,172 Other real estate owned and repossessed assets 1,579 1,974 1,817 1,694 299 Other assets 261,383 309,651 310,195 286,616 348,219 Total assets $ 11,676,721 $ 11,635,292 $ 11,542,731 $ 11,382,256 $ 11,180,555 LIABILITIES AND STOCKHOLDERS' EQUITY Deposits: Demand checking accounts $ 1,681,858 $ 1,638,378 $ 1,629,371 $ 1,678,406 $ 1,745,137 NOW accounts 637,374 647,370 654,748 661,863 647,476 Savings accounts 1,736,989 1,735,857 1,727,893 1,669,018 1,625,804 Money market accounts 2,041,185 2,073,557 2,065,569 2,082,810 2,161,359 Certificate of deposit accounts 1,819,353 1,718,414 1,670,147 1,574,855 1,491,844 Brokered deposit accounts 815,512 923,460 970,925 881,173 894,393 Total deposits 8,732,271 8,737,036 8,718,653 8,548,125 8,566,013 Borrowed funds: Advances from the FHLB 1,345,003 1,265,079 1,150,153 1,223,226 899,304 Subordinated debentures and notes 84,293 84,258 84,223 84,188 84,152 Other borrowed funds 68,251 80,125 127,505 69,256 151,612 Total borrowed funds 1,497,547 1,429,462 1,361,881 1,376,670 1,135,068 Operating lease liabilities 43,266 37,102 34,235 31,998 32,807 Mortgagors’ escrow accounts 14,456 17,117 16,245 17,239 12,578 Reserve for unfunded credits 6,859 11,400 15,807 19,767 21,497 Accrued expenses and other liabilities 151,960 204,695 201,679 189,813 254,721 Total liabilities 10,446,359 10,436,812 10,348,500 10,183,612 10,022,684 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 901,562 904,775 903,726 902,659 901,376 Retained earnings 453,555 445,560 441,285 438,722 427,937 Accumulated other comprehensive income (38,081 ) (61,693 ) (60,841 ) (52,798 ) (81,541 ) Treasury stock, at cost; 7,015,843, 7,373,009, 7,354,399, 7,354,399 and 7,350,981 shares, respectively (87,644 ) (91,132 ) (90,909 ) (90,909 ) (90,871 ) Total stockholders' equity 1,230,362 1,198,480 1,194,231 1,198,644 1,157,871 Total liabilities and stockholders' equity $ 11,676,721 $ 11,635,292 $ 11,542,731 $ 11,382,256 $ 11,180,555 BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)Three Months Ended September 30,
2024June 30,
2024March 31,
2024December 31,
2023September 30,
2023(In Thousands Except Share Data) Interest and dividend income: Loans and leases $ 149,643 $ 145,585 $ 145,265 $ 142,948 $ 136,561 Debt securities 6,473 6,480 6,878 6,945 6,799 Restricted equity securities 1,458 1,376 1,492 1,333 1,310 Short-term investments 1,986 1,914 1,824 1,093 2,390 Total interest and dividend income 159,560 155,355 155,459 152,319 147,060 Interest expense: Deposits 59,796 59,721 56,884 54,034 49,116 Borrowed funds 16,756 15,633 16,987 14,730 13,874 Total interest expense 76,552 75,354 73,871 68,764 62,990 Net interest income 83,008 80,001 81,588 83,555 84,070 Provision for credit losses on loans 4,832 5,607 7,423 3,851 2,947 Provision (credit) for credit losses on investments (172 ) (39 ) (44 ) (76 ) 84 Net interest income after provision for credit losses 78,348 74,433 74,209 79,780 81,039 Non-interest income: Deposit fees 2,353 3,001 2,897 3,064 3,024 Loan fees 464 702 789 515 639 Loan level derivative income, net — 106 437 778 376 Gain on sales of loans and leases held-for-sale 415 130 — 410 225 Other 3,116 2,457 2,161 3,260 1,244 Total non-interest income 6,348 6,396 6,284 8,027 5,508 Non-interest expense: Compensation and employee benefits 35,130 34,762 36,629 35,401 33,491 Occupancy 5,343 5,551 5,769 5,127 4,983 Equipment and data processing 6,831 6,732 7,031 7,245 6,766 Professional services 2,143 1,745 1,900 1,442 2,368 FDIC insurance 2,118 2,025 1,884 1,839 2,152 Advertising and marketing 859 1,504 1,574 758 1,174 Amortization of identified intangible assets 1,668 1,669 1,708 1,965 1,955 Merger and restructuring expense — 823 — — — Other 3,856 4,373 4,519 5,467 4,790 Total non-interest expense 57,948 59,184 61,014 59,244 57,679 Income before provision for income taxes 26,748 21,645 19,479 28,563 28,868 Provision for income taxes 6,606 5,273 4,814 5,675 6,167 Net income $ 20,142 $ 16,372 $ 14,665 $ 22,888 $ 22,701 Earnings per common share: Basic $ 0.23 $ 0.18 $ 0.16 $ 0.26 $ 0.26 Diluted $ 0.23 $ 0.18 $ 0.16 $ 0.26 $ 0.26 Weighted average common shares outstanding during the period: Basic 89,033,463 88,904,692 88,894,577 88,867,159 88,795,270 Diluted 89,319,611 89,222,315 89,181,508 89,035,505 88,971,210 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)Nine Months Ended September 30, 2024 2023 (In Thousands Except Share Data) Interest and dividend income: Loans and leases $ 440,493 $ 390,791 Debt securities 19,831 22,703 Restricted equity securities 4,326 4,238 Short-term investments 5,724 7,236 Total interest and dividend income 470,374 424,968 Interest expense: Deposits 176,401 121,631 Borrowed funds 49,376 47,181 Total interest expense 225,777 168,812 Net interest income 244,597 256,156 Provision for credit losses on loans 17,862 34,017 Provision (credit) for credit losses on investments (255 ) 415 Net interest income after provision for credit losses 226,990 221,724 Non-interest income: Deposit Fees 8,251 8,547 Loan Fees 1,955 1,521 Loan level derivative income, net 543 3,112 Gain on investment securities, net — 1,704 Gain on sales of loans and leases held-for-sale 545 2,171 Other 7,734 6,852 Total non-interest income 19,028 23,907 Non-interest expense: Compensation and employee benefits 106,521 103,494 Occupancy 16,663 15,076 Equipment and data processing 20,594 19,759 Professional services 5,788 5,784 FDIC insurance 6,027 6,005 Advertising and marketing 3,937 3,966 Amortization of identified intangible assets 5,045 5,875 Merger and restructuring expense 823 7,411 Other 12,748 12,910 Total non-interest expense 178,146 180,280 Income before provision for income taxes 67,872 65,351 Provision for income taxes 16,693 13,240 Net income $ 51,179 $ 52,111 Earnings per common share: Basic $ 0.58 $ 0.59 Diluted $ 0.57 $ 0.59 Weighted average common shares outstanding during the period: Basic 88,944,569 88,016,190 Diluted 89,241,470 88,253,361 Dividends paid per common share $ 0.405 $ 0.405 BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Asset Quality Analysis (Unaudited)At and for the Three Months Ended September 30,
2024June 30,
2024March 31,
2024December 31,
2023September 30,
2023(Dollars in Thousands) NONPERFORMING ASSETS: Loans and leases accounted for on a nonaccrual basis: Commercial real estate mortgage $ 11,595 $ 11,659 $ 18,394 $ 19,608 $ 23,263 Multi-family mortgage 1,751 — — — 1,318 Construction — — — — 2,316 Total commercial real estate loans 13,346 11,659 18,394 19,608 26,897 Commercial 15,734 16,636 3,096 3,886 5,406 Equipment financing 37,223 27,128 13,668 14,984 13,974 Total commercial loans and leases 52,957 43,764 16,764 18,870 19,380 Residential mortgage 3,862 4,495 4,563 4,292 4,249 Home equity 1,076 790 950 860 713 Other consumer 1 1 1 — 2 Total consumer loans 4,939 5,286 5,514 5,152 4,964 Total nonaccrual loans and leases 71,242 60,709 40,672 43,630 51,241 Other real estate owned 780 780 780 780 — Other repossessed assets 799 1,194 1,037 914 299 Total nonperforming assets $ 72,821 $ 62,683 $ 42,489 $ 45,324 $ 51,540 Loans and leases past due greater than 90 days and still accruing $ 16,091 $ 4,994 $ 363 $ 228 $ 1,175 Nonperforming loans and leases as a percentage of total loans and leases 0.73 % 0.62 % 0.42 % 0.45 % 0.55 % Nonperforming assets as a percentage of total assets 0.62 % 0.54 % 0.37 % 0.40 % 0.46 % PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES: Allowance for loan and lease losses at beginning of period $ 121,750 $ 120,124 $ 117,522 $ 119,081 $ 125,817 Charge-offs (4,183 ) (8,823 ) (5,390 ) (7,722 ) (10,978 ) Recoveries 375 436 309 581 4 Net charge-offs (3,808 ) (8,387 ) (5,081 ) (7,141 ) (10,974 ) Provision for loan and lease losses excluding unfunded commitments * 9,374 10,013 7,683 5,582 4,238 Allowance for loan and lease losses at end of period $ 127,316 $ 121,750 $ 120,124 $ 117,522 $ 119,081 Allowance for loan and lease losses as a percentage of total loans and leases 1.31 % 1.25 % 1.24 % 1.22 % 1.27 % NET CHARGE-OFFS: Commercial real estate loans $ — $ 3,819 $ 606 $ 1,087 $ (3 ) Commercial loans and leases ** 3,797 4,571 8,179 6,061 10,958 Consumer loans 11 (3 ) (4 ) (7 ) 19 Total net charge-offs $ 3,808 $ 8,387 $ 8,781 $ 7,141 $ 10,974 Net loan and lease charge-offs as a percentage of average loans and leases (annualized) 0.16 % 0.35 % 0.36 % 0.30 % 0.47 % *Provision for loan and lease losses does not include (credit) provision of $(4.5 million), $(4.4 million), $(0.3 million), $(1.7 million), and $(1.3) million for credit losses on unfunded commitments during the three months ended September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023, and September 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 September 30, 2024 June 30, 2024 September 30, 2023 Average
BalanceInterest
(1)Average
Yield/
CostAverage
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CostAverage
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(1)Average
Yield/
Cost(Dollars in Thousands) Assets: Interest-earning assets: Investments: Debt securities (2) $ 853,924 $ 6,516 3.05 % $ 846,469 $ 6,510 3.08 % $ 887,612 $ 6,840 3.08 % Restricted equity securities (2) 75,225 1,459 7.76 % 71,696 1,375 7.67 % 67,824 1,310 7.73 % Short-term investments 145,838 1,986 5.44 % 143,800 1,914 5.33 % 172,483 2,390 5.54 % Total investments 1,074,987 9,961 3.71 % 1,061,965 9,799 3.69 % 1,127,919 10,540 3.74 % Loans and Leases: Commercial real estate loans (3) 5,772,456 83,412 5.65 % 5,754,901 81,565 5.61 % 5,667,373 78,750 5.44 % Commercial loans (3) 1,079,084 18,440 6.69 % 1,069,154 17,672 6.54 % 939,492 15,295 6.38 % Equipment financing (3) 1,353,649 26,884 7.94 % 1,374,217 26,255 7.64 % 1,280,033 23,331 7.29 % Consumer loans (3) 1,505,095 21,123 5.60 % 1,488,587 20,291 5.46 % 1,471,985 19,237 5.21 % Total loans and leases 9,710,284 149,859 6.17 % 9,686,859 145,783 6.02 % 9,358,883 136,613 5.84 % Total interest-earning assets 10,785,271 159,820 5.93 % 10,748,824 155,582 5.79 % 10,486,802 147,153 5.61 % Non-interest-earning assets 666,067 704,570 693,833 Total assets $ 11,451,338 $ 11,453,394 $ 11,180,635 Liabilities and Stockholders' Equity: Interest-bearing liabilities: Deposits: NOW accounts $ 639,561 1,115 0.69 % $ 659,351 1,111 0.68 % $ 681,929 1,159 0.67 % Savings accounts 1,738,756 12,098 2.77 % 1,731,388 11,874 2.76 % 1,557,911 8,859 2.26 % Money market accounts 2,038,048 15,466 3.02 % 2,026,780 15,520 3.08 % 2,177,528 15,785 2.88 % Certificates of deposit 1,768,026 20,054 4.51 % 1,699,510 18,717 4.43 % 1,444,269 12,128 3.33 % Brokered deposit accounts 841,067 11,063 5.23 % 958,146 12,499 5.25 % 882,351 11,185 5.03 % Total interest-bearing deposits 7,025,458 59,796 3.39 % 7,075,175 59,721 3.39 % 6,743,988 49,116 2.89 % Borrowings Advances from the FHLB 1,139,049 14,366 4.94 % 1,049,609 12,894 4.86 % 954,989 11,706 4.80 % Subordinated debentures and notes 84,276 1,378 6.54 % 84,241 1,375 6.53 % 84,134 1,378 6.55 % Other borrowed funds 53,102 1,012 7.58 % 103,753 1,364 5.29 % 117,531 790 2.67 % Total borrowings 1,276,427 16,756 5.14 % 1,237,603 15,633 5.00 % 1,156,654 13,874 4.69 % Total interest-bearing liabilities 8,301,885 76,552 3.67 % 8,312,778 75,354 3.65 % 7,900,642 62,990 3.16 % Non-interest-bearing liabilities: Demand checking accounts 1,669,092 1,646,869 1,794,225 Other non-interest-bearing liabilities 264,324 300,362 318,041 Total liabilities 10,235,301 10,260,009 10,012,908 Stockholders’ equity 1,216,037 1,193,385 1,167,727 Total liabilities and equity $ 11,451,338 $ 11,453,394 $ 11,180,635 Net interest income (tax-equivalent basis) /Interest-rate spread (4) 83,268 2.26 % 80,228 2.14 % 84,163 2.45 % Less adjustment of tax-exempt income 260 227 93 Net interest income $ 83,008 $ 80,001 $ 84,070 Net interest margin (5) 3.07 % 3.00 % 3.18 % (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, 2024 September 30, 2023 Average
BalanceInterest
(1)Average
Yield/
CostAverage
BalanceInterest
(1)Average
Yield/
Cost(Dollars in Thousands) Assets: Interest-earning assets: Investments: Debt securities (2) $ 864,501 $ 19,953 3.08 % $ 971,855 $ 22,905 3.14 % Restricted equity securities (2) 74,422 4,327 7.75 % 74,000 4,238 7.64 % Short-term investments 140,156 5,724 5.44 % 183,295 7,236 5.26 % Total investments 1,079,079 30,004 3.71 % 1,229,150 34,379 3.73 % Loans and Leases: Commercial real estate loans (3) 5,763,065 246,026 5.61 % 5,629,600 225,999 5.29 % Commercial loans (3) 1,058,312 53,619 6.66 % 915,420 42,814 6.17 % Equipment financing (3) 1,367,380 80,034 7.80 % 1,253,512 66,901 7.12 % Consumer loans (3) 1,492,213 61,392 5.49 % 1,469,025 55,210 5.01 % Total loans and leases 9,680,970 441,071 6.07 % 9,267,557 390,924 5.62 % Total interest-earning assets 10,760,049 471,075 5.84 % 10,496,707 425,303 5.40 % Non-interest-earning assets 678,235 698,273 Total assets $ 11,438,284 $ 11,194,980 Liabilities and Stockholders' Equity: Interest-bearing liabilities: Deposits: NOW accounts $ 656,879 3,487 0.71 % $ 741,951 3,129 0.56 % Savings accounts 1,721,518 35,324 2.74 % 1,365,541 17,290 1.69 % Money market accounts 2,047,011 46,940 3.06 % 2,227,404 41,914 2.52 % Certificates of deposit 1,697,477 55,443 4.36 % 1,394,338 29,605 2.84 % Brokered deposit accounts 898,455 35,207 5.23 % 798,800 29,693 4.97 % Total interest-bearing deposits 7,021,340 176,401 3.36 % 6,528,034 121,631 2.49 % Borrowings Advances from the FHLB 1,117,809 41,893 4.92 % 1,135,845 40,524 4.70 % Subordinated debentures and notes 84,241 4,130 6.54 % 84,098 4,095 6.49 % Other borrowed funds 83,195 3,353 5.38 % 120,825 2,562 2.83 % Total borrowings 1,285,245 49,376 5.05 % 1,340,768 47,181 4.64 % Total interest-bearing liabilities 8,306,585 225,777 3.63 % 7,868,802 168,812 2.87 % Non-interest-bearing liabilities: Demand checking accounts 1,646,932 1,857,429 Other non-interest-bearing liabilities 280,947 301,543 Total liabilities 10,234,464 10,027,774 Stockholders’ equity 1,203,820 1,167,206 Total liabilities and equity $ 11,438,284 $ 11,194,980 Net interest income (tax-equivalent basis) /Interest-rate spread (4) 245,298 2.21 % 256,491 2.53 % Less adjustment of tax-exempt income 701 335 Net interest income $ 244,597 $ 256,156 Net interest margin (5) 3.05 % 3.27 % (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 Nine Months Ended
September 30,2024 2023 Reconciliation Table - Non-GAAP Financial Information (Dollars in Thousands Except Share Data) Reported Pretax Income $ 67,872 $ 65,351 Less: Security gains — 1,704 Add: Day 1 PCSB CECL provision — 16,744 Merger and restructuring expense 823 7,411 Operating Pretax Income $ 68,695 $ 87,802 Effective tax rate 24.6 % 20.3 % Provision for income taxes 16,895 17,789 Operating earnings after tax $ 51,800 $ 70,013 Operating earnings per common share: Basic $ 0.58 $ 0.80 Diluted $ 0.58 $ 0.79 Weighted average common shares outstanding during the period: Basic 88,944,569 88,016,190 Diluted 89,241,470 88,253,361 Return on average assets * 0.60 % 0.62 % Less: Security gains (after-tax) * — % 0.02 % Add: Day 1 PCSB CECL provision (after-tax) * — % 0.16 % Merger and restructuring expense (after-tax) * 0.01 % 0.07 % Operating return on average assets * 0.61 % 0.83 % Return on average tangible assets * 0.61 % 0.64 % Less: Security gains (after-tax) * — % 0.02 % Add: Day 1 PCSB CECL provision (after-tax) * — % 0.16 % Merger and restructuring expense (after-tax) * 0.01 % 0.07 % Operating return on average tangible assets * 0.62 % 0.85 % Return on average stockholders' equity * 5.67 % 5.95 % Less: Security gains (after-tax) * — % 0.16 % Add: Day 1 PCSB CECL provision (after-tax) * — % 1.53 % Merger and restructuring expense (after-tax) * 0.07 % 0.68 % Operating return on average stockholders' equity * 5.74 % 8.00 % Return on average tangible stockholders' equity * 7.25 % 7.76 % Less: Security gains (after-tax) * — % 0.20 % Add: Day 1 PCSB CECL provision (after-tax) * — % 1.99 % Merger and restructuring expense (after-tax) * 0.09 % 0.88 % Operating return on average tangible stockholders' equity * 7.34 % 10.43 % * Ratios at and for the nine months ended are annualized. There was no non-operating activity for the three months ended September 30, 2024 and September 30,2023, respectively. At and for the Three Months Ended September 30,
2024June 30,
2024March 31,
2024December 31,
2023September 30,
2023(Dollars in Thousands) Net income, as reported $ 20,142 $ 16,372 $ 14,665 $ 22,888 $ 22,701 Average total assets $ 11,451,338 $ 11,453,394 $ 11,417,185 $ 11,271,941 $ 11,180,635 Less: Average goodwill and average identified intangible assets, net 261,188 262,859 264,536 266,225 268,199 Average tangible assets $ 11,190,150 $ 11,190,535 $ 11,152,649 $ 11,005,716 $ 10,912,436 Return on average tangible assets (annualized) 0.72 % 0.59 % 0.53 % 0.83 % 0.83 % Average total stockholders’ equity $ 1,216,037 $ 1,193,385 $ 1,201,904 $ 1,170,776 $ 1,167,727 Less: Average goodwill and average identified intangible assets, net 261,188 262,859 264,536 266,225 268,199 Average tangible stockholders’ equity $ 954,849 $ 930,526 $ 937,368 $ 904,551 $ 899,528 Return on average tangible stockholders’ equity (annualized) 8.44 % 7.04 % 6.26 % 10.12 % 10.09 % Total stockholders’ equity $ 1,230,362 $ 1,198,480 $ 1,194,231 $ 1,198,644 $ 1,157,871 Less: Goodwill 241,222 241,222 241,222 241,222 241,222 Identified intangible assets, net 19,162 20,830 22,499 24,207 26,172 Tangible stockholders' equity $ 969,978 $ 936,428 $ 930,510 $ 933,215 $ 890,477 Total assets $ 11,676,721 $ 11,635,292 $ 11,542,731 $ 11,382,256 $ 11,180,555 Less: Goodwill 241,222 241,222 241,222 241,222 241,222 Identified intangible assets, net 19,162 20,830 22,499 24,207 26,172 Tangible assets $ 11,416,337 $ 11,373,240 $ 11,279,010 $ 11,116,827 $ 10,913,161 Tangible stockholders’ equity to tangible assets 8.50 % 8.23 % 8.25 % 8.39 % 8.16 % Tangible stockholders' equity $ 969,978 $ 936,428 $ 930,510 $ 933,215 $ 890,477 Number of common shares issued 96,998,075 96,998,075 96,998,075 96,998,075 96,998,075 Less: Treasury shares 7,015,843 7,373,009 7,354,399 7,354,399 7,350,981 Unvested restricted shares 883,789 713,443 749,099 749,099 780,859 Number of common shares outstanding 89,098,443 88,911,623 88,894,577 88,894,577 88,866,235 Tangible book value per common share $ 10.89 $ 10.53 $ 10.47 $ 10.50 $ 10.02 PDF available: http://ml.globenewswire.com/Resource/Download/6045e36a-2e9d-4b3a-b6a1-f895169b0f2d