Brookline Bancorp Inc.

24/07/2024 | Press release | Distributed by Public on 24/07/2024 20:06

Brookline Bancorp Announces Second Quarter Results Form 8 K

Brookline Bancorp Announces Second Quarter Results

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
[email protected]
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Selected Financial Highlights (Unaudited)
At and for the Three Months Ended
June 30,
2024 		March 31,
2024 		December 31,
2023 		September 30,
2023 		June 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,
2024 		March 31,
2024 		December 31,
2023 		September 30,
2023 		June 30,
2023
ASSETS (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,
2024 		March 31,
2024 		December 31,
2023 		September 30,
2023 		June 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,
2024 		March 31,
2024 		December 31,
2023 		September 30,
2023 		June 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,
2024 		March 31,
2024 		December 31,
2023 		September 30,
2023 		June 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

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