BOSTON, Jan. 24, 2024 (GLOBE NEWSWIRE) -- Brookline Bancorp, Inc. (NASDAQ: BRKL) (the "Company") today announced net income of $22.9 million, or $0.26 per basic and diluted share, for the fourth quarter of 2023, compared to $22.7 million, or $0.26 per basic and diluted share, for the third quarter of 2023, and $29.7 million, or $0.39 per basic and diluted share, for the fourth quarter of 2022.
For the year ended December 31, 2023, the Company reported net income of $75.0 million, or $0.85 per basic and diluted share, compared to $109.7 million, or $1.42 per basic and diluted share, for the year ended December 31, 2022. For the year ended December 31, 2023, the Company reported operating earnings of $92.9 million, or $1.05 per basic and diluted share, compared to $111.3 million, or $1.44 per basic and diluted share, for the year ended December 31, 2022.
Brookline Bancorp, Inc. CEO and Chairman Paul Perrault commented on 2023 performance, "Brookline Bancorp began the year by welcoming PCSB Bank customers and employees to our family of banks. I would like to thank our customers and the continued hard work and dedication of all our Company's employees to our overall success in 2023. In 2023, our industry experienced challenging headwinds. As we enter 2024, we remain well positioned to take advantage of opportunities in the tremendous markets we serve."
BALANCE SHEET
Total assets at December 31, 2023 increased $201.7 million to $11.4 billion from $11.2 billion at September 30, 2023, and increased $2.2 billion from $9.2 billion at December 31, 2022. At December 31, 2023, total loans and leases were $9.6 billion, representing an increase of $260.8 million from September 30, 2023, and an increase of $2.0 billion from December 31, 2022, primarily driven by the acquisition of PCSB Financial Corporation ("PCSB").
Total investment securities at December 31, 2023 increased $36.2 million to $916.6 million from $880.4 million at September 30, 2023, and increased $259.8 million from $656.8 million at December 31, 2022. Total cash and cash equivalents at December 31, 2023 decreased $28.0 million to $133.0 million from $161.0 million at September 30, 2023, and decreased $249.9 million from $383.0 million at December 31, 2022. As of December 31, 2023, total investment securities and total cash and cash equivalents represented 9.2 percent of total assets as compared to 9.3 percent and 11.3 percent as of September 30, 2023 and December 31, 2022, respectively.
Total deposits at December 31, 2023 decreased $17.9 million, $13.2 million of which was related to brokered deposits, to $8.5 billion from $8.6 billion at September 30, 2023 and increased $2.0 billion from $6.5 billion at December 31, 2022, primarily driven by the completion of the PCSB acquisition.
Total borrowed funds at December 31, 2023 increased $241.6 million to $1.4 billion from $1.1 billion at September 30, 2023, driven by the need to fund loan growth during the quarter, and decreased $56.0 million from $1.4 billion at December 31, 2022.
The ratio of stockholders' equity to total assets was 10.53 percent at December 31, 2023, as compared to 10.36 percent at September 30, 2023, and 10.80 percent at December 31, 2022. The ratio of tangible stockholders' equity to tangible assets (non-GAAP) was 8.39 percent at December 31, 2023, as compared to 8.16 percent at September 30, 2023, and 9.20 percent at December 31, 2022. Tangible book value per common share (non-GAAP) increased $0.48 from $10.02 at September 30, 2023 to $10.50 at December 31, 2023, compared to $10.80 at December 31, 2022.
NET INTEREST INCOME
Net interest income decreased $0.5 million to $83.6 million during the fourth quarter of 2023 from $84.1 million for the quarter ended September 30, 2023. The net interest margin decreased 3 basis points to 3.15 percent for the three months ended December 31, 2023 from 3.18 percent for the three months ended September 30, 2023, primarily driven by higher funding costs.
NON-INTEREST INCOME
Total non-interest income for the quarter ended December 31, 2023 increased $2.5 million to $8.0 million from $5.5 million for the quarter ended September 30, 2023. The increase was primarily driven by an increase of $2.0 million in other non-interest income, due to the mark to market on interest rate swaps, an increase of $0.4 million in loan level derivative income, net, and an increase of $0.2 million in gain on sales of loans and leases.
PROVISION FOR CREDIT LOSSES
The Company recorded a provision for credit losses of $3.8 million for the quarter ended December 31, 2023, compared to $3.0 million for the quarter ended September 30, 2023. The provision was driven by net charge-offs, an increase in specific reserves and strong loan growth, partially offset by a reduction in the unfunded reserve.
Total net charge-offs for the fourth quarter of 2023 were $7.1 million compared to $11.0 million in the third quarter of 2023, of which $4.5 million was previously reserved for. The $7.1 million in net charge-offs were driven by three individual charge-offs including a $3.3 million commercial loan, $1.0 million equipment financing loan, and a $0.9 million commercial real estate loan. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis decreased to 30 basis points for the fourth quarter of 2023 from 47 basis points for the third quarter of 2023.
The allowance for loan and lease losses represented 1.22 percent of total loans and leases at December 31, 2023, compared to 1.27 percent at September 30, 2023, and 1.29 percent at December 31, 2022. The decrease in ratio is driven by a change in loan mix consisting of a reduction in total construction commitments.
ASSET QUALITY
The ratio of total nonperforming loans and leases to total loans and leases was 0.45 percent at December 31, 2023 as compared to 0.55 percent at September 30, 2023. Total nonaccrual loans and leases decreased $7.6 million to $43.6 million at December 31, 2023 from $51.2 million at September 30, 2023. The ratio of nonperforming assets to total assets was 0.40 percent at December 31, 2023 as compared to 0.46 percent at September 30, 2023. Total nonperforming assets decreased $6.2 million to $45.3 million at December 31, 2023 from $51.5 million at September 30, 2023.
NON-INTEREST EXPENSE
Non-interest expense for the quarter ended December 31, 2023 increased $1.6 million to $59.2 million from $57.7 million for the quarter ended September 30, 2023. The increase was primarily driven by increases of $1.9 million in compensation and employee benefits and $0.5 million in equipment and data processing, partially offset by decreases of $0.9 million in professional services expense, $0.4 million in advertising and marketing expense, and $0.3 million in FDIC insurance expense.
PROVISION FOR INCOME TAXES
The effective tax rate was 19.9 percent and 20.1 percent for the three and twelve months ended December 31, 2023 compared to 21.4 percent for the three months ended September 30, 2023 and 17.8 percent and 21.6 percent for the three and twelve months ended December 31, 2022.
RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY
The annualized return on average assets was 0.81 percent during the fourth quarter of 2023 and flat compared to the third quarter of 2023; and was 0.67 percent for the year ended December 31, 2023, compared to 1.27 percent for the year ended December 31, 2022.
The annualized return on average tangible stockholders' equity increased to 10.12 percent during the fourth quarter of 2023 compared to 10.09 percent for the third quarter of 2023; and was 8.36 percent for the year ended December 31, 2023 compared to 13.35 percent for the year ended December 31, 2022.
DIVIDEND DECLARED
The Company's Board of Directors approved a dividend of $0.135 per share for the quarter ended December 31, 2023. The dividend will be paid on February 23, 2024 to stockholders of record on February 9, 2024.
CONFERENCE CALL
The Company will conduct a conference call/webcast at 1:30 PM Eastern Time on Thursday, January 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/124233277. To listen to the call without access to the slides, please dial 833-470-1428 (United States) or 404-975-4839 (internationally) and ask for the Brookline Bancorp, Inc. call (Access Code 714087). A recording 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: 419492.
ABOUT BROOKLINE BANCORP, INC.
Brookline Bancorp, Inc., a bank holding company with approximately $11.4 billion in assets and branch locations in eastern 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 Company provides commercial and retail banking services and 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, 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
ccarlson@brkl.com
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Selected Financial Highlights (Unaudited)
At and for the Three Months Ended
At and for the Twelve Months Ended
December 31, 2023
September 30, 2023
June 30, 2023
March 31, 2023
December 31, 2022
December 31, 2023
December 31, 2022
(Dollars In Thousands Except per Share Data)
Earnings Data:
Net interest income
$
83,555
$
84,070
$
86,037
$
86,049
$
80,030
$
339,711
$
299,771
Provision for credit losses on loans
3,851
2,947
5,726
25,344
5,671
37,868
8,525
Provision (credit) for credit losses on investments
(76
)
84
133
198
54
339
102
Non-interest income
8,027
5,508
5,462
12,937
9,056
31,934
28,347
Non-interest expense
59,244
57,679
57,825
64,776
47,225
239,524
179,542
Income before provision for income taxes
28,563
28,868
27,815
8,668
36,136
93,914
139,949
Net income
22,888
22,701
21,850
7,560
29,695
74,999
109,744
Performance Ratios:
Net interest margin (1)
3.15
%
3.18
%
3.26
%
3.36
%
3.81
%
3.24
%
3.67
%
Interest-rate spread (1)
2.39
%
2.45
%
2.51
%
2.66
%
3.35
%
2.50
%
3.40
%
Return on average assets (annualized)
0.81
%
0.81
%
0.78
%
0.27
%
1.34
%
0.67
%
1.27
%
Return on average tangible assets (annualized) (non-GAAP)
0.83
%
0.83
%
0.79
%
0.28
%
1.37
%
0.69
%
1.30
%
Return on average stockholders' equity (annualized)
7.82
%
7.78
%
7.44
%
2.61
%
12.09
%
6.42
%
11.15
%
Return on average tangible stockholders' equity (annualized) (non-GAAP)
10.12
%
10.09
%
9.67
%
3.43
%
14.48
%
8.36
%
13.35
%
Efficiency ratio (2)
64.69
%
64.39
%
63.20
%
65.44
%
53.01
%
64.45
%
54.72
%
Per Common Share Data:
Net income — Basic
$
0.26
$
0.26
$
0.25
$
0.09
$
0.39
$
0.85
$
1.42
Net income — Diluted
0.26
0.26
0.25
0.09
0.39
0.85
1.42
Cash dividends declared
0.135
0.135
0.135
0.135
0.135
0.540
0.530
Book value per share (end of period)
13.48
13.03
13.11
13.14
12.91
13.48
12.91
Tangible book value per common share (end of period) (non-GAAP)
10.50
10.02
10.07
10.08
10.80
10.50
10.80
Stock price (end of period)
10.91
9.11
8.74
10.50
14.15
10.91
14.15
Balance Sheet:
Total assets
$
11,382,256
$
11,180,555
$
11,206,078
$
11,522,485
$
9,185,836
$
11,382,256
$
9,185,836
Total loans and leases
9,641,589
9,380,782
9,340,799
9,246,965
7,644,388
9,641,589
7,644,388
Total deposits
8,548,125
8,566,013
8,517,013
8,456,462
6,522,146
8,548,125
6,522,146
Total stockholders' equity
1,198,644
1,157,871
1,162,308
1,165,066
992,125
1,198,644
992,125
Asset Quality:
Nonperforming assets
$
45,324
$
51,540
$
46,925
$
28,962
$
15,302
$
45,324
$
15,302
Nonperforming assets as a percentage of total assets
0.40
%
0.46
%
0.42
%
0.25
%
0.17
%
0.40
%
0.17
%
Allowance for loan and lease losses
$
117,522
$
119,081
$
125,817
$
120,865
$
98,482
$
117,522
$
98,482
Allowance for loan and lease losses as a percentage of total loans and leases
1.22
%
1.27
%
1.35
%
1.31
%
1.29
%
1.22
%
1.29
%
Net loan and lease charge-offs
$
7,141
$
10,974
$
1,097
$
451
$
310
$
19,663
$
3,320
Net loan and lease charge-offs as a percentage of average loans and leases (annualized)
0.30
%
0.47
%
0.05
%
0.02
%
0.02
%
0.21
%
0.05
%
Capital Ratios:
Stockholders' equity to total assets
10.53
%
10.36
%
10.37
%
10.11
%
10.80
%
10.53
%
10.80
%
Tangible stockholders' equity to tangible assets (non-GAAP)
8.39
%
8.16
%
8.16
%
7.94
%
9.20
%
8.39
%
9.20
%
(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)
December 31, 2023
September 30, 2023
June 30, 2023
March 31, 2023
December 31, 2022
ASSETS
(In Thousands Except Share Data)
Cash and due from banks
$
34,514
$
33,506
$
44,323
$
30,782
$
191,767
Short-term investments
98,513
127,495
180,109
455,538
191,192
Total cash and cash equivalents
133,027
161,001
224,432
486,320
382,959
Investment securities available-for-sale
916,601
880,412
910,210
1,067,032
656,766
Total investment securities
916,601
880,412
910,210
1,067,032
656,766
Allowance for investment security losses
(441)
(517)
(433)
(301)
(102)
Net investment securities
916,160
879,895
909,777
1,066,731
656,664
Loans and leases:
Commercial real estate loans
5,764,529
5,669,768
5,670,771
5,610,414
4,404,148
Commercial loans and leases
2,399,668
2,241,375
2,193,027
2,147,149
2,016,499
Consumer loans
1,477,392
1,469,639
1,477,001
1,489,402
1,223,741
Total loans and leases
9,641,589
9,380,782
9,340,799
9,246,965
7,644,388
Allowance for loan and lease losses
(117,522)
(119,081)
(125,817)
(120,865)
(98,482)
Net loans and leases
9,524,067
9,261,701
9,214,982
9,126,100
7,545,906
Restricted equity securities
77,595
65,460
71,421
86,230
71,307
Premises and equipment, net of accumulated depreciation
89,853
90,476
90,685
87,799
71,391
Right-of-use asset operating leases
30,863
31,619
31,774
30,067
19,484
Deferred tax asset
56,952
74,491
77,704
75,028
52,237
Goodwill
241,222
241,222
241,222
241,222
160,427
Identified intangible assets, net of accumulated amortization
24,207
26,172
28,126
30,080
1,781
Other real estate owned and repossessed assets
1,694
299
602
508
408
Other assets
286,616
348,219
315,353
292,400
223,272
Total assets
$
11,382,256
$
11,180,555
$
11,206,078
$
11,522,485
$
9,185,836
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand checking accounts
$
1,678,406
$
1,745,137
$
1,843,516
$
1,899,370
$
1,802,518
NOW accounts
661,863
647,476
699,119
757,411
544,118
Savings accounts
1,669,018
1,625,804
1,464,054
1,268,375
762,271
Money market accounts
2,082,810
2,161,359
2,166,570
2,185,971
2,174,952
Certificate of deposit accounts
1,574,855
1,491,844
1,410,905
1,362,970
928,143
Brokered deposit accounts
881,173
894,393
932,849
982,365
310,144
Total deposits
8,548,125
8,566,013
8,517,013
8,456,462
6,522,146
Borrowed funds:
Advances from the FHLBB
1,223,226
899,304
1,043,381
1,458,457
1,237,823
Subordinated debentures and notes
84,188
84,152
84,116
84,080
84,044
Other borrowed funds
69,256
151,612
98,773
87,565
110,785
Total borrowed funds
1,376,670
1,135,068
1,226,270
1,630,102
1,432,652
Operating lease liabilities
31,998
32,807
33,021
31,373
19,484
Mortgagors' escrow accounts
17,239
12,578
17,207
17,080
5,607
Reserve for unfunded credits
19,767
21,497
22,789
23,112
20,602
Accrued expenses and other liabilities
189,813
254,721
227,470
199,290
193,220
Total liabilities
10,183,612
10,022,684
10,043,770
10,357,419
8,193,711
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 85,177,172 shares issued, respectively
(Credit) provision for credit losses on investments
(76
)
84
133
198
54
Net interest income after provision for credit losses
79,780
81,039
80,178
60,507
74,305
Non-interest income:
Deposit fees
3,064
3,024
2,866
2,657
2,916
Loan fees
515
639
491
391
446
Loan level derivative income, net
778
376
363
2,373
670
Gain on investment securities, net
—
—
3
1,701
321
Gain on sales of loans and leases
410
225
308
1,638
2,612
Other
3,260
1,244
1,431
4,177
2,091
Total non-interest income
8,027
5,508
5,462
12,937
9,056
Non-interest expense:
Compensation and employee benefits
35,401
33,491
33,438
36,565
29,525
Occupancy
5,127
4,983
4,870
5,223
4,005
Equipment and data processing
7,245
6,766
6,531
6,462
5,758
Professional services
1,442
2,368
1,986
1,430
1,546
FDIC insurance
1,839
2,152
2,609
1,244
1,001
Advertising and marketing
758
1,174
1,382
1,410
1,052
Amortization of identified intangible assets
1,965
1,955
1,954
1,966
120
Merger and acquisition expense
—
—
1,002
6,409
641
Other
5,467
4,790
4,053
4,067
3,577
Total non-interest expense
59,244
57,679
57,825
64,776
47,225
Income before provision for income taxes
28,563
28,868
27,815
8,668
36,136
Provision for income taxes
5,675
6,167
5,965
1,108
6,441
Net income
$
22,888
$
22,701
$
21,850
$
7,560
$
29,695
Earnings per common share:
Basic
$
0.26
$
0.26
$
0.25
$
0.09
$
0.39
Diluted
$
0.26
$
0.26
$
0.25
$
0.09
$
0.39
Weighted average common shares outstanding during the period:
Basic
88,867,159
88,795,270
88,665,135
86,563,641
76,841,655
Diluted
89,035,505
88,971,210
88,926,543
86,837,806
77,065,076
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)
Twelve Months Ended December 31,
2023
2022
(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases
$
533,739
$
328,769
Debt securities
29,648
13,079
Restricted equity securities
5,571
1,898
Short-term investments
8,329
1,440
Total interest and dividend income
577,287
345,186
Interest expense:
Deposits
175,665
29,592
Borrowed funds
61,911
15,823
Total interest expense
237,576
45,415
Net interest income
339,711
299,771
Provision for credit losses on loans
37,868
8,525
Provision for credit losses on investments
339
102
Net interest income after provision for credit losses
301,504
291,144
Non-interest income:
Deposit fees
11,611
10,919
Loan fees
2,036
2,208
Loan level derivative income, net
3,890
4,246
Gain on investment securities, net
1,704
321
Gain on sales of loans and leases
2,581
4,136
Other
10,112
6,517
Total non-interest income
31,934
28,347
Non-interest expense:
Compensation and employee benefits
138,895
113,487
Occupancy
20,203
16,002
Equipment and data processing
27,004
20,833
Professional services
7,226
5,060
FDIC insurance
7,844
3,177
Advertising and marketing
4,724
4,980
Amortization of identified intangible assets
7,840
494
Merger and acquisition expense
7,411
2,249
Other
18,377
13,260
Total non-interest expense
239,524
179,542
Income before provision for income taxes
93,914
139,949
Provision for income taxes
18,915
30,205
Net income
$
74,999
$
109,744
Earnings per common share:
Basic
$
0.85
$
1.42
Diluted
$
0.85
$
1.42
Weighted average common shares outstanding during the period:
Basic
88,230,681
77,079,278
Diluted
88,450,646
77,351,834
Dividends paid per common share
$
0.540
$
0.520
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Asset Quality Analysis (Unaudited)
At and for the Three Months Ended
December 31, 2023
September 30, 2023
June 30, 2023
March 31, 2023
December 31, 2022
(Dollars in Thousands)
NONPERFORMING ASSETS:
Loans and leases accounted for on a nonaccrual basis:
Commercial real estate mortgage
$
19,608
$
23,263
$
8,737
$
4,589
$
607
Multi-family mortgage
—
1,318
—
—
—
Construction
—
2,316
3,828
3,883
707
Total commercial real estate loans
19,608
26,897
12,565
8,472
1,314
Commercial
3,886
5,406
16,023
5,495
464
Equipment financing
14,984
13,974
12,809
9,908
9,653
Condominium association
—
—
—
51
58
Total commercial loans and leases
18,870
19,380
28,832
15,454
10,175
Residential mortgage
4,292
4,249
4,343
3,449
2,680
Home equity
860
713
583
1,079
723
Other consumer
—
2
—
—
2
Total consumer loans
5,152
4,964
4,926
4,528
3,405
Total nonaccrual loans and leases
43,630
51,241
46,323
28,454
14,894
Other real estate owned
780
—
—
—
—
Other repossessed assets
914
299
602
508
408
Total nonperforming assets
$
45,324
$
51,540
$
46,925
$
28,962
$
15,302
Loans and leases past due greater than 90 days and still accruing
$
228
$
1,175
$
490
$
726
$
33
Nonperforming loans and leases as a percentage of total loans and leases
0.45
%
0.55
%
0.50
%
0.31
%
0.19
%
Nonperforming assets as a percentage of total assets
0.40
%
0.46
%
0.42
%
0.25
%
0.17
%
PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:
Allowance for loan and lease losses at beginning of period
$
119,081
$
125,817
$
120,865
$
98,482
$
94,169
Charge-offs
(7,722
)
(10,978
)
(1,690
)
(845
)
(658
)
Recoveries
581
4
593
394
348
Net charge-offs
(7,141
)
(10,974
)
(1,097
)
(451
)
(310
)
Provision for loan and lease losses excluding unfunded commitments *
5,582
4,238
6,049
22,834
4,623
Allowance for loan and lease losses at end of period
$
117,522
$
119,081
$
125,817
$
120,865
$
98,482
Allowance for loan and lease losses as a percentage of total loans and leases
1.22
%
1.27
%
1.35
%
1.31
%
1.29
%
NET CHARGE-OFFS:
Commercial real estate loans
$
1,087
$
(3
)
$
(6
)
$
(6
)
$
(6
)
Commercial loans and leases
6,061
10,958
1,108
457
320
Consumer loans
(7
)
19
(5
)
—
(4
)
Total net charge-offs
$
7,141
$
10,974
$
1,097
$
451
$
310
Net loan and lease charge-offs as a percentage of average loans and leases (annualized)
0.30
%
0.47
%
0.05
%
0.02
%
0.02
%
*Provision for loan and lease losses does not include (credit) provision of $(1.7 million), $(1.3 million), $(0.3) million, $2.5 million, and $1.0 million for credit losses on unfunded commitments during the three months ended December 31, 2023, September 30, 2023, June 30, 2023, March 31, 2023, and December 31, 2022, respectively.
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Average Yields / Costs (Unaudited)
Three Months Ended
December 31, 2023
September 30, 2023
December 31, 2022
Average Balance
Interest (1)
Average Yield/ Cost
Average Balance
Interest (1)
Average Yield/ Cost
Average Balance
Interest (1)
Average Yield/ Cost
(Dollars in Thousands)
Assets:
Interest-earning assets:
Investments:
Debt securities (2)
$
876,350
$
6,986
3.19
%
$
887,612
$
6,840
3.08
%
$
665,969
$
3,497
2.10
%
Restricted equity securities (2)
67,567
1,334
7.90
%
67,824
1,310
7.73
%
52,093
766
5.88
%
Short-term investments
85,790
1,093
5.09
%
172,483
2,390
5.54
%
60,385
754
5.00
%
Total investments
1,029,707
9,413
3.66
%
1,127,919
10,540
3.74
%
778,447
5,017
2.58
%
Loans and Leases:
Commercial real estate loans (3)
5,727,930
81,653
5.58
%
5,667,373
78,750
5.44
%
4,341,929
53,088
4.78
%
Commercial loans (3)
969,603
16,296
6.58
%
939,492
15,295
6.38
%
797,312
10,541
5.18
%
Equipment financing (3)
1,347,589
25,211
7.48
%
1,280,033
23,331
7.29
%
1,200,911
20,816
6.93
%
Consumer loans (3)
1,475,580
19,888
5.37
%
1,471,985
19,237
5.21
%
1,225,056
13,991
4.55
%
Total loans and leases
9,520,702
143,048
6.01
%
9,358,883
136,613
5.84
%
7,565,208
98,436
5.20
%
Total interest-earning assets
10,550,409
152,461
5.78
%
10,486,802
147,153
5.61
%
8,343,655
103,453
4.96
%
Non-interest-earning assets
721,532
693,833
513,976
Total assets
$
11,271,941
$
11,180,635
$
8,857,631
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts
$
657,134
1,146
0.69
%
$
681,929
1,159
0.67
%
$
583,499
257
0.18
%
Savings accounts
1,658,144
10,684
2.56
%
1,557,911
8,859
2.26
%
787,021
1,155
0.58
%
Money market accounts
2,140,225
16,239
3.01
%
2,177,528
15,785
2.88
%
2,282,217
7,711
1.34
%
Certificates of deposit
1,530,772
14,517
3.76
%
1,444,269
12,128
3.33
%
922,250
2,865
1.23
%
Brokered deposit accounts
880,604
11,448
5.16
%
882,351
11,185
5.03
%
218,188
2,197
3.99
%
Total interest-bearing deposits
6,866,879
54,034
3.12
%
6,743,988
49,116
2.89
%
4,793,175
14,185
1.17
%
Borrowings:
Advances from the FHLBB
965,846
11,943
4.84
%
954,989
11,706
4.80
%
736,652
6,979
3.71
%
Subordinated debentures and notes
84,170
1,381
6.56
%
84,134
1,378
6.55
%
84,025
1,332
6.34
%
Other borrowed funds
136,566
1,406
4.09
%
117,531
790
2.67
%
148,195
877
2.35
%
Total borrowings
1,186,582
14,730
4.86
%
1,156,654
13,874
4.69
%
968,872
9,188
3.71
%
Total interest-bearing liabilities
8,053,461
68,764
3.39
%
7,900,642
62,990
3.16
%
5,762,047
23,373
1.61
%
Non-interest-bearing liabilities:
Demand checking accounts
1,723,849
1,794,225
1,843,780
Other non-interest-bearing liabilities
323,855
318,041
269,498
Total liabilities
10,101,165
10,012,908
7,875,325
Stockholders' equity
1,170,776
1,167,727
982,306
Total liabilities and equity
$
11,271,941
$
11,180,635
$
8,857,631
Net interest income (tax-equivalent basis) /Interest-rate spread (4)
83,697
2.39
%
84,163
2.45
%
80,080
3.35
%
Less adjustment of tax-exempt income
142
93
50
Net interest income
$
83,555
$
84,070
$
80,030
Net interest margin (5)
3.15
%
3.18
%
3.81
%
(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.
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Average Yields / Costs (Unaudited)
Twelve Months Ended
December 31, 2023
December 31, 2022
Average Balance
Interest (1)
Average Yield/ Cost
Average Balance
Interest (1)
Average Yield/ Cost
(Dollars in Thousands)
Assets:
Interest-earning assets:
Investments:
Debt securities (2)
$
947,782
$
29,891
3.15
%
$
706,580
$
13,079
1.85
%
Restricted equity securities (2)
72,264
5,572
7.71
%
36,813
1,898
5.15
%
Short-term investments
158,718
8,329
5.25
%
104,288
1,440
1.38
%
Total investments
1,178,764
43,792
3.72
%
847,681
16,417
1.94
%
Loans and Leases:
Commercial real estate loans (3)
5,654,385
307,652
5.37
%
4,238,960
172,811
4.02
%
Commercial loans (3)
929,077
59,110
6.28
%
744,972
34,105
4.52
%
Equipment financing (3)
1,277,224
92,112
7.21
%
1,148,673
75,767
6.60
%
Consumer loans (3)
1,470,677
75,098
5.10
%
1,199,804
46,295
3.86
%
Total loans and leases
9,331,363
533,972
5.72
%
7,332,409
328,978
4.49
%
Total interest-earning assets
10,510,127
577,764
5.50
%
8,180,090
345,395
4.22
%
Non-interest-earning assets
704,244
443,313
Total assets
$
11,214,371
$
8,623,403
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts
$
720,572
4,275
0.59
%
$
598,267
853
0.14
%
Savings accounts
1,439,293
27,974
1.94
%
882,881
2,228
0.25
%
Money market accounts
2,205,430
58,153
2.64
%
2,387,670
15,392
0.64
%
Certificates of deposit
1,428,727
44,122
3.09
%
998,580
8,210
0.82
%
Brokered deposit accounts
819,419
41,141
5.02
%
146,038
2,909
1.99
%
Total interest-bearing deposits
6,613,441
175,665
2.66
%
5,013,436
29,592
0.59
%
Borrowings:
Advances from the FHLBB
1,092,996
52,467
4.73
%
340,569
9,355
2.71
%
Subordinated debentures and notes
84,116
5,476
6.51
%
83,971
5,133
6.11
%
Other borrowed funds
124,793
3,968
3.18
%
118,383
1,335
1.13
%
Total borrowings
1,301,905
61,911
4.69
%
542,923
15,823
2.87
%
Total interest-bearing liabilities
7,915,346
237,576
3.00
%
5,556,359
45,415
0.82
%
Non-interest-bearing liabilities:
Demand checking accounts
1,823,759
1,879,620
Other non-interest-bearing liabilities
307,160
203,187
Total liabilities
10,046,265
7,639,166
Stockholders' equity
1,168,106
984,237
Total liabilities and equity
$
11,214,371
$
8,623,403
Net interest income (tax-equivalent basis) /Interest-rate spread (4)
340,188
2.50
%
299,980
3.40
%
Less adjustment of tax-exempt income
477
209
Net interest income
$
339,711
$
299,771
Net interest margin (5)
3.24
%
3.67
%
(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.
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Non-GAAP Financial Information (Unaudited)
At and for the Three Months Ended December 31,
At and for the Twelve Months Ended December 31,
2023
2022
2023
2022
Reconciliation Table - Non-GAAP Financial Information
(Dollars in Thousands Except Share Data)
Reported Pretax Income
$
28,563
$
36,136
$
93,914
$
139,949
Less:
Security gains
—
321
1,704
321
Add:
Day 1 PCSB CECL provision
—
—
16,744
—
Merger and acquisition expenses
—
641
7,411
2,249
Operating Pretax income
$
28,563
$
36,456
$
116,365
$
141,877
Effective tax rate
19.9
%
17.8
%
20.1
%
21.6
%
Provision for income tax
5,675
6,498
23,437
30,622
Operating earnings
$
22,888
$
29,958
$
92,928
$
111,255
Operating earnings per common share:
Basic
$
0.26
$
0.39
$
1.05
$
1.44
Diluted
$
0.26
$
0.39
$
1.05
$
1.44
Weighted average common shares outstanding during the period:
Basic
88,867,159
76,841,655
88,230,681
77,079,278
Diluted
89,035,505
77,065,076
88,450,646
77,351,834
Return on average assets *
0.81
%
1.34
%
0.67
%
1.27
%
Less:
Security gains (after-tax) *
—
%
0.01
%
0.01
%
—
%
Add:
Day 1 PCSB CECL provision (after-tax) *
—
%
—
%
0.12
%
—
%
Merger and acquisition expenses (after-tax) *
—
%
0.02
%
0.05
%
0.02
%
Operating return on average assets *
0.81
%
1.35
%
0.83
%
1.29
%
Return on average tangible assets *
0.83
%
1.37
%
0.69
%
1.30
%
Less:
Security gains (after-tax) *
—
%
0.01
%
0.01
%
—
%
Add:
Day 1 PCSB CECL provision (after-tax) *
—
%
—
%
0.12
%
—
%
Merger and acquisition expenses (after-tax) *
—
%
0.02
%
0.05
%
0.02
%
Operating return on average tangible assets *
0.83
%
1.38
%
0.85
%
1.32
%
Return on average stockholders' equity *
7.82
%
12.09
%
6.42
%
11.15
%
Less:
Security gains (after-tax) *
—
%
0.11
%
0.12
%
0.03
%
Add:
Day 1 PCSB CECL provision (after-tax) *
—
%
—
%
1.14
%
—
%
Merger and acquisition expenses (after-tax) *
—
%
0.21
%
0.51
%
0.18
%
Operating return on average stockholders' equity *
7.82
%
12.19
%
7.95
%
11.30
%
Return on average tangible stockholders' equity *
10.12
%
14.48
%
8.36
%
13.35
%
Less:
Security gains (after-tax) *
—
%
0.13
%
0.15
%
0.03
%
Add:
Day 1 PCSB CECL provision (after-tax) *
—
%
—
%
1.49
%
—
%
Merger and acquisition expenses (after-tax) *
—
%
0.26
%
0.66
%
0.21
%
Operating return on average tangible stockholders' equity *
10.12
%
14.61
%
10.36
%
13.53
%
* Ratios at and for the three months ended are annualized.
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Non-GAAP Financial Information (Unaudited)
At and for the Three Months Ended
At and for the Twelve Months Ended
December 31, 2023
September 30, 2023
June 30, 2023
March 31, 2023
December 31, 2022
December 31, 2023
December 31, 2022
(Dollars in Thousands)
Net income, as reported
$
22,888
$
22,701
$
21,850
$
7,560
$
29,695
$
74,999
$
109,744
Average total assets
$
11,271,941
$
11,180,635
$
11,272,672
$
11,131,087
$
8,857,631
$
11,214,371
$
8,623,403
Less: Average goodwill and average identified intangible assets, net
266,225
268,199
270,147
278,135
162,266
270,637
162,447
Average tangible assets
$
11,005,716
$
10,912,436
$
11,002,525
$
10,852,952
$
8,695,365
$
10,943,734
$
8,460,956
Return on average tangible assets (annualized)
0.83
%
0.83
%
0.79
%
0.28
%
1.37
%
0.69
%
1.30
%
Average total stockholders' equity
$
1,170,776
$
1,167,727
$
1,174,167
$
1,159,635
$
982,306
$
1,168,106
$
984,237
Less: Average goodwill and average identified intangible assets, net
266,225
268,199
270,147
278,135
162,266
270,637
162,447
Average tangible stockholders' equity
$
904,551
$
899,528
$
904,020
$
881,500
$
820,040
$
897,469
$
821,790
Return on average tangible stockholders' equity (annualized)