0001049782 False 0001049782 2024-10-23 2024-10-23 iso4217:USD xbrli:shares iso4217:USD xbrli:shares
 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________

FORM 8-K

_________________

CURRENT REPORT

Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  October 23, 2024

_______________________________

BROOKLINE BANCORP, INC.

(Exact name of registrant as specified in its charter)

_______________________________

Delaware0-2369504-3402944
(State or Other Jurisdiction of Incorporation)(Commission File Number)(I.R.S. Employer Identification No.)

131 Clarendon Street

Boston, Massachusetts 02116

(Address of Principal Executive Offices) (Zip Code)

(617) 425-4600

(Registrant's telephone number, including area code)

Not applicable

(Former name or former address, if changed since last report)

_______________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value of $0.01 per shareBRKLNasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company,indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 
 
Item 2.02. Results of Operations and Financial Condition.

On October 23, 2024, the Board of Directors of Brookline Bancorp, Inc. (the “Company”) issued a press release announcing its earnings for the quarter ended September 30, 2024. Additionally, the Company announced the approval by its Board of Directors of a regular quarterly dividend of $0.135 per share payable on November 29, 2024 to stockholders of record on November 15, 2024. A copy of that press release is attached hereto as Exhibit 99.1 and is hereby incorporated by reference herein.

Item 7.01. Regulation FD Disclosure.

In connection with the press release announcing the Company’s quarter earnings, the Company posted an investor presentation to its website at www.brooklinebancorp.com. A copy of the investor presentation is attached hereto as Exhibit 99.2 and is hereby incorporated by reference herein.

Item 9.01. Financial Statements and Exhibits.
 
 

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 BROOKLINE BANCORP, INC.
   
  
Date: October 23, 2024By: /s/ Carl M. Carlson        
  Carl M. Carlson
  Co-President, Chief Financial & Strategy Officer
  
 
 

EXHIBIT INDEX

The following exhibits are furnished as part of this report:

Exhibit No. Description
   
99.1 Press release of Brookline Bancorp, Inc. reporting earnings and dividend approval, issued October 23, 2024  
99.2 Investor Presentation of Brookline Bancorp, Inc., issued October 23, 2024
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

EXHIBIT 99.1

Brookline Bancorp Announces Third Quarter Results

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,
2024		 June 30,
2024		 March 31,
2024		 December 31,
2023		 September 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 loans4,832 5,607 7,423 3,851 2,947 
Provision (credit) for credit losses on investments(172) (39) (44) (76) 84 
Non-interest income6,348 6,396 6,284 8,027 5,508 
Non-interest expense57,948 59,184 61,014 59,244 57,679 
Income before provision for income taxes26,748 21,645 19,479 28,563 28,868 
Net income20,142 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 — Diluted0.23 0.18 0.16 0.26 0.26 
Cash dividends declared0.135 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 leases9,755,236 9,721,137 9,655,086 9,641,589 9,380,782 
Total deposits8,732,271 8,737,036 8,718,653 8,548,125 8,566,013 
Total stockholders’ equity1,230,362 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 assets0.62%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 leases1.31%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 assets10.54%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,
2024		 June 30,
2024		 March 31,
2024		 December 31,
2023		 September 30,
2023		 
ASSETS(In Thousands Except Share Data) 
Cash and due from banks$82,168 $60,067 $45,708 $34,514 $33,506 
Short-term investments325,721 283,017 256,178 98,513 127,495 
Total cash and cash equivalents407,889 343,084 301,886 133,027 161,001 
Investment securities available-for-sale855,391 856,439 865,798 916,601 880,412 
Total investment securities855,391 856,439 865,798 916,601 880,412 
Allowance for investment security losses(186)(359)(398)(441)(517)
Net investment securities855,205 856,080 865,400 916,160 879,895 
Loans and leases held-for-sale— — 6,717 — — 
Loans and leases:          
Commercial real estate loans5,779,290 5,782,111 5,755,239 5,764,529 5,669,768 
Commercial loans and leases2,453,038 2,443,530 2,416,904 2,399,668 2,241,375 
Consumer loans1,522,908 1,495,496 1,482,943 1,477,392 1,469,639 
Total loans and leases9,755,236 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 leases9,627,920 9,599,387 9,534,962 9,524,067 9,261,701 
Restricted equity securities82,675 78,963 74,709 77,595 65,460 
Premises and equipment, net of accumulated depreciation86,925 88,378 89,707 89,853 90,476 
Right-of-use asset operating leases41,934 35,691 33,133 30,863 31,619 
Deferred tax asset50,827 60,032 60,484 56,952 74,491 
Goodwill241,222 241,222 241,222 241,222 241,222 
Identified intangible assets, net of accumulated amortization19,162 20,830 22,499 24,207 26,172 
Other real estate owned and repossessed assets1,579 1,974 1,817 1,694 299 
Other assets261,383 309,651 310,195 286,616 348,219 
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 accounts637,374 647,370 654,748 661,863 647,476 
Savings accounts1,736,989 1,735,857 1,727,893 1,669,018 1,625,804 
Money market accounts2,041,185 2,073,557 2,065,569 2,082,810 2,161,359 
Certificate of deposit accounts1,819,353 1,718,414 1,670,147 1,574,855 1,491,844 
Brokered deposit accounts815,512 923,460 970,925 881,173 894,393 
Total deposits8,732,271 8,737,036 8,718,653 8,548,125 8,566,013 
Borrowed funds:          
Advances from the FHLB1,345,003 1,265,079 1,150,153 1,223,226 899,304 
Subordinated debentures and notes84,293 84,258 84,223 84,188 84,152 
Other borrowed funds68,251 80,125 127,505 69,256 151,612 
Total borrowed funds1,497,547 1,429,462 1,361,881 1,376,670 1,135,068 
Operating lease liabilities43,266 37,102 34,235 31,998 32,807 
Mortgagors’ escrow accounts14,456 17,117 16,245 17,239 12,578 
Reserve for unfunded credits6,859 11,400 15,807 19,767 21,497 
Accrued expenses and other liabilities151,960 204,695 201,679 189,813 254,721 
Total liabilities10,446,359 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, respectively970 970 970 970 970 
Additional paid-in capital901,562 904,775 903,726 902,659 901,376 
Retained earnings453,555 445,560 441,285 438,722 427,937 
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' equity1,230,362 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,
2024		 June 30,
2024		 March 31,
2024		 December 31,
2023		 September 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 securities6,473 6,480 6,878 6,945 6,799
Restricted equity securities1,458 1,376 1,492 1,333 1,310
Short-term investments1,986 1,914 1,824 1,093 2,390
Total interest and dividend income159,560 155,355 155,459 152,319 147,060
Interest expense:         
Deposits59,796 59,721 56,884 54,034 49,116
Borrowed funds16,756 15,633 16,987 14,730 13,874
Total interest expense76,552 75,354 73,871 68,764 62,990
Net interest income83,008 80,001 81,588 83,555 84,070
Provision for credit losses on loans4,832 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 losses78,348 74,433 74,209 79,780 81,039
Non-interest income:         
Deposit fees2,353 3,001 2,897 3,064 3,024
Loan fees464 702 789 515 639
Loan level derivative income, net— 106 437 778 376
Gain on sales of loans and leases held-for-sale415 130 — 410 225
Other3,116 2,457 2,161 3,260 1,244
Total non-interest income6,348 6,396 6,284 8,027 5,508
Non-interest expense:         
Compensation and employee benefits35,130 34,762 36,629 35,401 33,491
Occupancy5,343 5,551 5,769 5,127 4,983
Equipment and data processing6,831 6,732 7,031 7,245 6,766
Professional services2,143 1,745 1,900 1,442 2,368
FDIC insurance2,118 2,025 1,884 1,839 2,152
Advertising and marketing859 1,504 1,574 758 1,174
Amortization of identified intangible assets1,668 1,669 1,708 1,965 1,955
Merger and restructuring expense— 823 — — —
Other3,856 4,373 4,519 5,467 4,790
Total non-interest expense57,948 59,184 61,014 59,244 57,679
Income before provision for income taxes26,748 21,645 19,479 28,563 28,868
Provision for income taxes6,606 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:         
Basic89,033,463 88,904,692 88,894,577 88,867,159 88,795,270
Diluted89,319,611 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 securities19,831 22,703
Restricted equity securities4,326 4,238
Short-term investments5,724 7,236
Total interest and dividend income470,374 424,968
Interest expense:   
Deposits176,401 121,631
Borrowed funds49,376 47,181
Total interest expense225,777 168,812
Net interest income244,597 256,156
Provision for credit losses on loans17,862 34,017
Provision (credit) for credit losses on investments(255)415
Net interest income after provision for credit losses226,990 221,724
Non-interest income:   
Deposit Fees8,251 8,547
Loan Fees1,955 1,521
Loan level derivative income, net543 3,112
Gain on investment securities, net— 1,704
Gain on sales of loans and leases held-for-sale545 2,171
Other7,734 6,852
Total non-interest income19,028 23,907
Non-interest expense:   
Compensation and employee benefits106,521 103,494
Occupancy16,663 15,076
Equipment and data processing20,594 19,759
Professional services5,788 5,784
FDIC insurance6,027 6,005
Advertising and marketing3,937 3,966
Amortization of identified intangible assets5,045 5,875
Merger and restructuring expense823 7,411
Other12,748 12,910
Total non-interest expense178,146 180,280
Income before provision for income taxes67,872 65,351
Provision for income taxes16,693 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:   
Basic88,944,569 88,016,190
Diluted89,241,470 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,
2024		 June 30,
2024		 March 31,
2024		 December 31,
2023		 September 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 mortgage1,751 — — — 1,318 
Construction— — — — 2,316 
Total commercial real estate loans13,346 11,659 18,394 19,608 26,897 
           
Commercial15,734 16,636 3,096 3,886 5,406 
Equipment financing37,223 27,128 13,668 14,984 13,974 
Total commercial loans and leases52,957 43,764 16,764 18,870 19,380 
           
Residential mortgage3,862 4,495 4,563 4,292 4,249 
Home equity1,076 790 950 860 713 
Other consumer1 1 1 — 2 
Total consumer loans4,939 5,286 5,514 5,152 4,964 
           
Total nonaccrual loans and leases71,242 60,709 40,672 43,630 51,241 
           
Other real estate owned780 780 780 780 — 
Other repossessed assets799 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 leases0.73%0.62%0.42%0.45%0.55%
Nonperforming assets as a percentage of total assets0.62%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)
Recoveries375 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 leases1.31%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 loans11 (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
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)$     853,924$    6,5163.05%$     846,469$    6,5103.08%$     887,612$    6,8403.08%
Restricted equity securities (2)75,2251,4597.76%71,6961,3757.67%67,8241,3107.73%
Short-term investments145,8381,9865.44%143,8001,9145.33%172,4832,3905.54%
Total investments1,074,9879,9613.71%1,061,9659,7993.69%1,127,91910,5403.74%
Loans and Leases:            
Commercial real estate loans (3)5,772,45683,4125.65%5,754,90181,5655.61%5,667,37378,7505.44%
Commercial loans (3)1,079,08418,4406.69%1,069,15417,6726.54%939,49215,2956.38%
Equipment financing (3)1,353,64926,8847.94%1,374,21726,2557.64%1,280,03323,3317.29%
Consumer loans (3)1,505,09521,1235.60%1,488,58720,2915.46%1,471,98519,2375.21%
Total loans and leases9,710,284149,8596.17%9,686,859145,7836.02%9,358,883136,6135.84%
Total interest-earning assets10,785,271159,8205.93%10,748,824155,5825.79%10,486,802147,1535.61%
Non-interest-earning assets666,067   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$     639,5611,1150.69%$     659,3511,1110.68%$     681,9291,1590.67%
Savings accounts1,738,75612,0982.77%1,731,38811,8742.76%1,557,9118,8592.26%
Money market accounts2,038,04815,4663.02%2,026,78015,5203.08%2,177,52815,7852.88%
Certificates of deposit1,768,02620,0544.51%1,699,51018,7174.43%1,444,26912,1283.33%
Brokered deposit accounts841,06711,0635.23%958,14612,4995.25%882,35111,1855.03%
Total interest-bearing deposits7,025,45859,7963.39%7,075,17559,7213.39%6,743,98849,1162.89%
Borrowings            
Advances from the FHLB1,139,04914,3664.94%1,049,60912,8944.86%954,98911,7064.80%
Subordinated debentures and notes84,2761,3786.54%84,2411,3756.53%84,1341,3786.55%
Other borrowed funds53,1021,0127.58%103,7531,3645.29%117,5317902.67%
Total borrowings1,276,42716,7565.14%1,237,60315,6335.00%1,156,65413,8744.69%
Total interest-bearing liabilities8,301,88576,5523.67%8,312,77875,3543.65%7,900,64262,9903.16%
Non-interest-bearing liabilities:            
Demand checking accounts1,669,092   1,646,869   1,794,225   
Other non-interest-bearing liabilities264,324   300,362   318,041   
Total liabilities10,235,301   10,260,009   10,012,908   
Stockholders’ equity1,216,037   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) 83,2682.26% 80,2282.14% 84,1632.45%
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
Balance		Interest
(1)		Average
Yield/
Cost		 Average
Balance		Interest
(1)		Average
Yield/
Cost		 
 (Dollars in Thousands)
Assets:        
Interest-earning assets:        
Investments:        
Debt securities (2)$                  864,501$  19,9533.08%$     971,855$  22,9053.14%
Restricted equity securities (2)74,4224,3277.75%74,0004,2387.64%
Short-term investments140,1565,7245.44%183,2957,2365.26%
Total investments1,079,07930,0043.71%1,229,15034,3793.73%
Loans and Leases:        
Commercial real estate loans (3)5,763,065246,0265.61%5,629,600225,9995.29%
Commercial loans (3)1,058,31253,6196.66%915,42042,8146.17%
Equipment financing (3)1,367,38080,0347.80%1,253,51266,9017.12%
Consumer loans (3)1,492,21361,3925.49%1,469,02555,2105.01%
Total loans and leases9,680,970441,0716.07%9,267,557390,9245.62%
Total interest-earning assets10,760,049471,0755.84%10,496,707425,3035.40%
Non-interest-earning assets678,235   698,273   
Total assets$             11,438,284   $11,194,980   
         
Liabilities and Stockholders' Equity:        
Interest-bearing liabilities:        
Deposits:        
NOW accounts$                  656,8793,4870.71%$     741,9513,1290.56%
Savings accounts1,721,51835,3242.74%1,365,54117,2901.69%
Money market accounts2,047,01146,9403.06%2,227,40441,9142.52%
Certificates of deposit1,697,47755,4434.36%1,394,33829,6052.84%
Brokered deposit accounts898,45535,2075.23%798,80029,6934.97%
Total interest-bearing deposits7,021,340176,4013.36%6,528,034121,6312.49%
Borrowings        
Advances from the FHLB1,117,80941,8934.92%1,135,84540,5244.70%
Subordinated debentures and notes84,2414,1306.54%84,0984,0956.49%
Other borrowed funds83,1953,3535.38%120,8252,5622.83%
Total borrowings1,285,24549,3765.05%1,340,76847,1814.64%
Total interest-bearing liabilities8,306,585225,7773.63%7,868,802168,8122.87%
Non-interest-bearing liabilities:        
Demand checking accounts1,646,932   1,857,429   
Other non-interest-bearing liabilities280,947   301,543   
Total liabilities10,234,464   10,027,774   
Stockholders’ equity1,203,820   1,167,206   
Total liabilities and equity$             11,438,284   $11,194,980   
Net interest income (tax-equivalent basis) /Interest-rate spread (4) 245,2982.21% 256,4912.53%
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,
2024		 June 30,
2024		 March 31,
2024		 December 31,
2023		 September 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, net261,188 262,859 264,536 266,225 268,199 
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, net261,188 262,859 264,536 266,225 268,199 
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:          
Goodwill241,222 241,222 241,222 241,222 241,222 
Identified intangible assets, net19,162 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:          
Goodwill241,222 241,222 241,222 241,222 241,222 
Identified intangible assets, net19,162 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 assets8.50 %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 issued96,998,075 96,998,075 96,998,075 96,998,075 96,998,075 
Less:          
Treasury shares7,015,843 7,373,009 7,354,399 7,354,399 7,350,981 
Unvested restricted shares883,789 713,443 749,099 749,099 780,859 
Number of common shares outstanding89,098,443 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


Exhibit 99.2

 

October 24, 2024 1 3Q 2024 Financial Results

 

 

Forward Looking Statements 2 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.

 

 

x Loans grew $34 million. x Customer deposits increased $103 million. x Margin increased 7 bps to 3.07%. x Pretax, pre - provision income of $31.4 million, up $4.2 million from Q2. x Operating expense down $0.5 million from Q2. 3 Fortress Balance Sheet / Asset Quality x NPAs to total assets of 0.62%. x Net charge offs $3.8 million (0.16% annualized). x The reserve for loan losses represents a coverage ratio of 131 basis points. x Total Risk Based Capital of 12.5% and Tangible Common Equity (TCE) of 8.5%. Quarterly Net Income of $20.1 million and EPS of $0.23 Quarterly Dividend of $0.135 Per Share

 

 

Summary Income Statement ▪ Net Income of $20.1 million or $0.23 per share. %Δ Δ 3Q23 %Δ Δ 2Q24 3Q24 $m, except per share amts ▪ Net interest income increased - 1% $ (1.1) $ 84.1 4% $ 3.0 $ 80.0 $ 83.0 Net interest income $3 million from Q2 due to 15% 0.8 5.5 - 2% (0.1) 6.4 6.3 Noninterest income improved loan yields offsetting - - - - - - Security gains (losses) - higher funding costs. 0% (0.3) 89.6 3% 2.9 86.4 Total Revenue 89.3 ▪ Noninterest income of $6.3 million is in line with Q2. ▪ Noninterest expense declined $0.5 million linked quarter. ▪ Restructuring charge in Q2 of $0.8 million associated with the severance and occupancy expense related to the exit of the Specialty Vehicle business at Eastern Funding. ▪ The provision for credit losses was $4.7 million for the quarter, a decline of $0.9 million from 2Q’24. 0% 0.2 57.7 - 1% (0.5) 58.4 57.9 Noninterest expense - - - - 100% (0.8) 0.8 - Restructuring/Merger exp. - 2% (0.5) 31.9 15% 4.2 27.2 31.4 Pretax, Preprov. Net Rev. 57% 1.7 3.0 - 16% (0.9) 5.6 4.7 Provision for credit losses - 8% (2.2) 28.9 24% 5.1 21.6 26.7 Pretax income 6% 0.4 6.2 25% 1.3 5.3 6.6 Provision for taxes - 11% $ (2.6) $ 22.7 23% $ 3.8 $ 16.3 $ 20.1 Net Income - 12% $ (0.03) $ 0.26 28% $ 0.05 $ 0.18 $ 0.23 EPS 0% 349 88,971 0% 98 89,222 89,320 Avg diluted shares (000s) - 0.11% 0.81% 0.13% 0.57% 0.70% Return on Assets - 1.65% 10.09% 1.40% 7.04% 8.44% Return on Tangible Equity - 0.11% 3.18% 0.07% 3.00% 3.07% Net Interest Margin 0.46% 64.39% - 3.65% 68.50% 64.85% Efficiency Ratio Linked Quarter (LQ) Year over Year (YoY) Amounts as presented may differ slightly from the Company’s Earnings Release due to rounding to foot schedules presented. 4

 

 

Margin – Yields and Costs LQ Δ Prior Quarter 3Q24 Yield Interest Avg Bal Yield Interest Avg Bal Yield Interest Avg Bal $ millions 0.15% $ 4.0 $ 23 6.02% $ 145.8 $ 9,687 6.17% $ 149.8 $ 9,710 Loans 0.02% 0.2 13 3.69% 9.8 1,062 3.71% 10.0 1,075 Investments & earning cash 0.14% $ 4.2 $ 36 5.79% $ 155.6 $ 10,749 5.93% $ 159.8 $ 10,785 Interest Earning Assets 0.00% $ 0.1 $ (49) 3.39% $ 59.7 $ 7,075 3.39% $ 59.8 $ 7,026 Interest bearing deposits 0.14% 1.1 38 5.00% 15.7 1,238 5.14% 16.8 1,276 Borrowings 0.02% $ 1.2 $ (11) 3.65% $ 75.4 $ 8,313 3.67% $ 76.6 $ 8,302 Interest Bearing Liabilities 0.12% 2.14% 2.26% Net interest spread 0.07% $ 3.0 3.00% $ 80.2 3.07% $ 83.2 Net interest income, TEB / Margin - 0.2 0.2 LESS: Tax Equivalent Basis (TEB) Adj. 3.0 $ 80.0 $ 83.0 $ Net Interest Income 5.50% 8.50% 5.3 1% 5.53% 5.04% 4.61% 4.57% 5.50% 8.50% 5.33% 5.44% 4.75% 4.38% 4.40% 5.00% 8.00% 5.16% 4.93% 3.64% 3.56% 3.78% Fed Funds (upper) Prime 30 Day Avg SOFR Ameribor 2Y Treasury 5Y Treasury 10Y Treasury 9/30/2023 12/31/2023 3/31/2024 6/30/2024 9/30/2024 Amounts as presented may differ slightly from the Company’s Earnings Release due to rounding to foot schedules presented. 5

 

 

Summary Balance Sheet ▪ Total assets increased $42 million driven by growth in loans and higher cash and equivalents. ▪ Loans increased $34 million. ▪ Securities declined $1 million, and Cash equivalents increased $65 million. ▪ The allowance for loan losses increased $5 million. ▪ ALLL coverage of 1.31%. ▪ Deposits declined $5 million. ▪ Borrowings increased $69 million. ▪ Tangible Equity to Tangible Assets of 8.50%*. Year over Year (YoY) Linked Quarter (LQ) %Δ 3Q23 Δ Δ 3Q24 2Q24 $m, except per share amts 4% $ 9,381 $ 374 $ 34 $ 9,755 $ 9,721 Gross Loans, investment 7% (119) (8) (5) (127) (122) Allowance for loan losses 4% 366 9,262 29 9,599 9,628 Net Loans - 3% (25) 880 (1) 856 855 Securities 153% 247 161 65 343 408 Cash & equivalents - 3% (7) 267 (2) 262 260 Intangibles - 14% (85) 611 (49) 575 526 Other assets & Loans, HFS 4% 496 $ 11,181 $ 42 $ 11,635 $ 11,677 $ Total Assets 2% $ 166 $ 8,566 $ (5) $ 8,737 $ 8,732 Deposits 32% 363 1,135 69 1,429 1,498 Borrowings - 67% (14) 21 (4) 11 7 Reserve for unfunded loans - 31% (92) 301 (51) 260 209 Other Liabilities 4% 423 10,023 9 10,437 10,446 Total Liabilities 6% 73 1,158 33 1,198 1,231 Stockholders' Equity 4% $ 496 $ 11,181 $ 42 $ 11,635 $ 11,677 Total Liabilities & Equity 9% $ 0.87 $ 10.02 $ 0.36 $ 10.53 $ 10.89 TBV per share 0% 232 88,866 186 88,912 89,098 Actual shares outstanding (000) 0.34% 8.16% 0.27% 8.23% 8.50% Tang. Equity / Tang. Assets 2.21% 109.51% 0.46% 111.26% 111.72% Loans / Deposits 0.04% 1.27% 0.06% 1.25% 1.31% ALLL / Gross Loans Amounts as presented may differ slightly from the Company’s Earnings Release due to rounding to foot schedules presented. *Reconciliation of Non - GAAP measures in Earnings Release. 6

 

 

Loan and Deposit Composition 59% 11% 14% Loans 16% 19% 7% 20% 24% 21% 9% CRE C&I Equipment Consumer Deposits DDA NOW Savings MMkt CDs Brkd Amounts as presented may differ slightly from the Company’s Earnings Release due to rounding to foot schedules presented. %Δ Δ 3Q23 Δ 2Q24 3Q24 $ millions 2% $ 109 $ 5,670 $ (3) $ 5,782 $ 5,779 CRE 24% 217 911 64 1,064 1,128 Commercial S 0% (5) 1,330 (55) 1,380 1,325 Equipment Finance OA N 4% 53 1,470 28 1,495 1,523 Consumer L Total Loans $ 9,755 $ 9,721 $ 34 $ 9,381 $ 374 4% - 4% $ (63) $ 1,745 $ 44 $ 1,638 $ 1,682 Demand deposits - 2% (11) 648 (11) 648 637 NOW 7% 111 1,626 1 1,736 1,737 Savings - 6% (120) 2,161 (33) 2,074 2,041 Money market 22% 327 1,492 101 1,718 1,819 CDs - 9% (78) 894 (107) 923 816 Brokered deposits 2% $ 166 $ 8,566 $ (5) $ 8,737 $ 8,732 Total Deposits Linked Quarter (LQ) 7 Year over Year (YoY) DEPOSITS Customer deposits increased ~$103 million as Brokered deposits decline ~$107 million.

 

 

Capital Strength 8 ▪ As of September 30, 2024, the Company maintained capital well above regulatory “well capitalized” requirements. Capital in Excess of "Well Capitalized" Brookline Board Policy Limits Regulatory BASEL III Requirements preliminary estimates* Regulatory Capital Buffer $ Regulatory Capital Buffer % Operating Targets Policy Minimums "Well Capitalized" Minimum Sep - 24 $ millions $ 378.9 3.9% ≥ 8.0% ≥ 7.5% ≥ 6.5% ≥ 4.5% 10.4% Tier 1 Common / RWA $ 242.0 2.5% ≥ 9.5% ≥ 9.0% ≥ 8.0% ≥ 6.0% 10.5% Tier 1 / RWA $ 243.1 2.5% ≥ 11.5% ≥ 11.0% ≥ 10.0% ≥ 8.0% 12.5% Total Risk Based Capital $ 464.7 4.1% ≥ 6.0% ≥ 5.5% ≥ 5.0% ≥ 5.0% 9.1% Leverage Ratio * Regulatory capital ratios are preliminary estimates and may differ from numbers calculated in final Regulatory filings.

 

 

Regular Dividends Per Share The Board of Directors announced a dividend of $0.135 per share payable November 29, 2024 to stockholders of record on November 15, 2024. 0.046 9 $0.096 $0.110 $0.210 $0.316 $0.340 $0.340 $0.340 $0.340 $0.340 $0.340 $0.340 $0.340 $0.340 $0.340 $0.340 $0.340 $0.355 $0.360 $0.360 $0.395 $0.440 $0.460 $0.480 $0.520 $0.540 $0.135 $0.135 $0.135 $0.135 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Q1'24 Q2'24 Q3'24 Q4'24

 

 

QUESTIONS Paul A. Perrault, Chairman and Chief Executive Officer Carl M. Carlson, Co - President, Chief Financial and Strategy Officer Thank You. 10

 

 

APPENDIX RHODE ISLAND - PROVIDENCE WESTCHESTER / LOWER HUDSON VALLEY, NY BOSTON / EASTERN MASSACHUSETTS (28) (22) (14) Subsidiary of Eastern Funding 11

 

 

Non Performing Assets and Net Charge Offs Non Performing Assets (NPAs), in millions $ (13.6) $ 26.9 $ 1.6 $ 11.7 $ 13.3 CRE 33.6 19.4 9.2 43.8 53.0 C&I - 4.9 (0.3) 5.2 4.9 Consumer 20.0 51.2 10.5 60.7 Total Non Performing Loans (NPLs) 71.2 0.8 - - 0.8 Other real estate owned 0.8 finance. 0.5 0.3 (0.4) 1.2 Other repossessed assets 0.8 $ 21.3 $ 51.5 $ 10.1 $ 62.7 Total NPAs $ 72.8 0.18% 0.55% 0.11% 0.62% NPLs / Total Loans 0.73% 0.16% 0.46% 0.08% 0.54% NPAs / Total Assets 0.62% Net Charge Offs (NCOs), in millions $ - $ - $ (3.8) $ 3.8 $ - CRE loans (7.2) 11.0 (0.8) 4.6 3.8 C&I loans - - - - - Consumer loans $ (7.2) $ 11.0 $ (4.6) $ 8.4 $ 3.8 Total Net Charge Offs - 0.31% 0.47% - 0.19% 0.35% 0.16% NCOs / Loans (annualized) Linked Quarter (LQ) 3Q24 2Q24 Year over Year (YoY) Δ 3Q23 Δ Amounts as presented may differ slightly from the Company’s Earnings Release due to rounding to foot schedules presented. 12 ▪ NPLs increased $11 million from the prior quarter driven by one large commercial loan in equipment finance. ▪ Net charge offs of $3.8 million in the quarter in C&I, driven by equipment

 

 

Key Economic Variables - CECL Select Economic Variables from the Moody’s Baseline Forecasts ▪ The Company uses Moody’s forecasts as inputs into the models used to estimate credit losses under CECL. 13 ▪ The September 2024 Baseline economic forecast was favorable to the June 2024 forecast: ▪ GDP – FAVORABLE ▪ Unemployment – slightly UNFAVORABLE ▪ CRE Price Index – FAVORABLE ▪ We have modified our forecast weightings for 3Q’24: ▪ 50% Moderate Recession; neutral target of 30% ▪ 45% Baseline; neutral target of 40% ▪ 5% Stronger Near Term Growth; neutral target of 30% Stronger Near Term Growth (S1) Baseline Moderate Recession (S3) Weightings of Moody's Forecast for CECL Model 3Q 2024 50% 45% 5% 0% 40% 60% 2Q 2024 0% 40% 60% 1Q 2024 0% 40% 60% 4Q 2023 0% 40% 60% 3Q 2023 Change from Prior CURRENT: 3Q'24 Prior Quarter: Baseline Scenario 2025 2024 2025 2024 2025 2024 310 230 23,637 23,152 23,327 22,922 GDP - 0.2 4.1 4.2 4.1 4.0 Unemployment Rate (0.3) (0.2) 4.0 5.0 4.3 5.2 Fed Fund Rate - (0.2) 4.1 4.1 4.1 4.3 10 Treasury 7.0 1.5 325.3 306.5 318.3 305.0 CRE Price Index

 

 

Investment CRE 49% Commercial 20% Equipment Finance 15% Consumer 16% Perm Constr Total % Total % Total % Total % Food & Lodging Manufacturing Finance and Ins Wholesale Trade Professional RE Agents / Brokers Health Care / Social Construction Retail Arts, Entert., Rec Condo Trans./Warehousing Other Services $ 356 18% 234 12% 229 12% 122 6% 153 8% 237 12% 182 9% 50 3% 163 8% 102 5% 45 2% 15 1% 90 5% Residential Home Equity Other Consumer Purchase Mtge $ 1,082 71% 367 24% 58 4% 16 1% Total $ 1,523 100% - Apartment Retail Office Industrial Mixed Use 1 - 4 Family Hotel Land Other 355 $ 1,242 $ 166 837 3 674 36 692 11 468 1 5 19 186 10 38 43 $ 1,408 29% 840 18% 710 15% 703 15% 469 10% 24 1% 196 4% 38 1% 398 8% Total $ 4,459 $ 327 $ 4,786 100% Total $ 1,978 100% Total $ 1,468 100% 44% $ 645 Laundry Eastern Funding Core 11% 158 Fitness/Macrolease 4% 56 Grocery 2% 23 Dry Cleaning 1% 21 Restaurant 1% 11 Car Wash 12% 181 EF CRE 3% 49 Other EF 9% 139 Tow Truck Specialty Vehicle 4% 58 Heavy Tow 2% 33 FedEx 1% 10 Trailer 6% 84 Other Vehicle Specialty Vehicle $ 324 22% Discontinued - Run off mode Total Loans Outstanding $ 9,755 Amounts as presented may differ slightly from the Company’s Earnings Release due to rounding to foot schedules presented. Major Loan Segments with Industry Breakdown $4,796 $1,915 $1,515 $1,495 3Q24 Loans outstanding ($millions) Owner Occupied CRE included in Commercial and Equipment Finance 14

 

 

CRE – Loan to Value (LTV) 40% 42% 39% 42% 41% 15% 34% 50% 53% 52% 47% 46% 53% 45% 59% 50% 44% 42% 8% 11% 12% 4% 14% 16% 6% 3% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Apartment Retail Office Industrial 50% and lower Mixed Use 50 - 70 Medical Hotel Restaurant Other Non Owner Occupied CRE and Multifamily Exposures at September 30, 2024. Exposures by LTV 70 - 80 80+ 41% 49% 1% 9% 15

 

 

33% 41% 33% 21% 28% 21% 53% 52% 29% 12% 7% 15% 8% 14% 9% 21% 12% 7% 7% 6% 11% 9% 5% 3% 5% 10% 17% 26% 24% 21% 30% 11% 24% 20% 15% 11% 20% 12% 13% 22% 31% 1 0 % 6% 17% 6% 6% 7% 18% 8% 9% 3% 2% 0% 4% 4% 5% 2% 0% 3% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Apartment Retail Office 2018 and Before Restaurant Other Non Owner Occupied CRE and Multifamily Exposures at September 30, 2024. Exposures by Year of Origination Industrial Mixed Use Medical Hotel 2019 2020 2021 2022 2023 2024 3 % CRE - Vintage 8 % 17 % 19 % 9 % 11 % 33 % 16

 

 

ICRE Maturities, excludes Construction 3Q24 ICRE Maturities by Size Average Loan Size Number of Loans Outstanding Loan Size $16.4 22 $359.9 $10MM+ 6.9 20 138.8 $5MM - $10MM 2.1 98 208.6 $1MM - $5MM 0.3 188 63.8 Under $1MM $2.4 328 $771.1 Total 17

 

 

Office Maturities, excludes Construction 3Q24 ▪ 20% ($137MM) of the Bank’s Office portfolio is maturing before 9/30/2026. Out of the $137MM Office loans maturing, only 12% mature in the next six months, while 47% mature in the second half of 2025. ▪ Recent efforts to extend and/or refinance other Office assets have been largely successful. Mitigating factors include dedicated, well - heeled sponsors, long lease terms, and staggered lease maturities. ▪ Despite deterioration in the Office market and elevated vacancy rates in Boston, the portfolio remains relatively healthy with a 90% overall Pass rating and few credits requiring workouts. Office Maturities by Submarket Average Loan Size Number of Loans Outstanding Bank $5.8 17 $98.9 Brookline Bank 14.3 4 57.0 Boston 3.3 7 23.4 Inside 128 3.1 6 18.6 Other BBK 2.5 15 38.1 Bank Rhode Island 2.4 11 26.4 Providence Cranston Pawtucket 2.9 4 11.7 Other BARI 0.1 2 0.2 PCSB $4.0 34 $137.2 Total Office Maturities - Asset Quality Average LTV Average DSC Average Loan Size Outstanding Loan Size 47% 1.42x $3.9 $126.2 Core 175% 0.58x 5.5 11.0 Criticized + Classified 58% 1.35x $4.0 $137.2 Total 18

 

 

Multi - Family Maturities, excludes Construction 3Q24 ▪ 12 % of the Bank’s Multi - Family portfolio is maturing before 9 / 30 / 2026 . ▪ Portfolio is primarily comprised of large Class B multi - family properties ( 84 % ), followed by small 1 - 9 family properties ( 8 % ) . ▪ The portfolio continues to perform strongly with minimal adversely rated credits. There are currently no criticized or classified credits in the maturing multi - family population. Multi - Family Maturities - Asset Quality Average LTV Average DSC Average Loan Size Outstanding Loan Size 50% 1.96x $1.8 $173.3 Core - - - - Criticized + Classified 50% 1.96x $1.8 $173.3 Total 19

 

 

ICRE Repricing, excludes Construction and Swapped/Floating Rate Loans 3Q24 ICRE Repricing by Size Average Loan Size Number of Loans Outstanding Loan Size 12.9 3 38.7 $10MM+ 6.5 6 39.2 $5MM - $10MM 2.3 86 193.5 $1MM - $5MM 0.4 135 58.9 Under $1MM $1.4 230 $330.4 Total 20

 

 

Consumer Loans – LTV / FICO 21 700+ 86% 650 - 699 7% 600 - 649 3% 599 - N/A 3% 50% or less 32% 50% - 69% 39% 70% - 80% 25% 80%+ 4% 700+ 94% 50% or less 50% - 69% 32% 70% - 80% 32% 80%+ 2% Resid. 1 - 4 58% LTV 1% Resid. 1 - 4 FICO 650 - 699 3% Home Equity FICO Home Equity 34% 56% LTV 3Q24

 

 

Well Diversified Deposit Base – 72% of Deposits are Insured* Consumer Deposits 52% (76% insured) Commercial Deposits 44% (61% insured) Municipal Deposits 4% * Insured includes deposits which are collateralized. Excludes brokered deposits which are 100% FDIC insured and have laddered maturities. 28% of Non Brokered Deposits Uninsured 22 3Q24

 

 

Securities Portfolio ▪ Highly liquid, risk averse securities portfolio with prudent duration and minimal extension risk. The entire investment portfolio is classified as Available for Sale. ▪ The after tax, mark to market on the portfolio is included in Accumulated Other Comprehensive Income in Stockholders’ Equity. Total OCI represents a reduction in stockholders’ equity of 3.2%. UST 50% 23 Agency 22% Corp 1% MBS 23% CMO 2% Municipals 2% 3Q24 Amounts as presented may differ slightly from the Company’s Earnings Release due to rounding to foot schedules presented. Duration Book Yield Unreal. G/L Fair Value Book Value Current Par $ in millions 2.9 2.71% $ (18) $ 424 $ 442 $ 445 U.S. Treasuries 3.9 2.61% (15) 183 198 194 Agency Debentures 1.7 4.60% (0) 12 12 13 Corp Bonds 4.6 3.30% (17) 200 217 228 Agency MBS 4.1 2.96% (1) 19 20 21 Agency CMO 3.0 4.49% 0 18 18 19 Municipals 3.5 2.90% $ (51) $ 855 $ 906 $ 920 Total

 

 

Interest Rate Risk Floating (<3m) 34% Adj. 34% Fixed 32% 3Q24 Loan Originations, $459 million Total Loan Portfolio Mix – Duration 2.2 - 0.43% - 0.78% - 1.04% - 0.09% - 0.36% - 1.74% - 2.46% 0.66% 2.25% - 2.26% Forward - Implied Rates 2.58% Cumulative Net Interest Income Change by Quarter 09/30/2024 Flat Balance Sheet , simulations reflect a product weighted beta of 40% on total deposits. - 100bps Ramp Q2 - 24 Q3 - 24 1.65% Q4 - 24 +200bps Ramp Q1 - 25 Floating (<3m) 23% 24 Adj. 38% Fixed 39%

 

 

Deposit and Funding Betas - Percentage Change in Cost versus Change in Federal Funds Rate 25 ▪ The Federal Reserve began increasing the Federal Funds rate in March 2022 and increased rates 525 basis points through June 2024. ▪ On Sept 18 , 2024 the FRB reduced the Federal Funds rate by 50 basis points . ▪ Q1’22: 0.25% first increase ▪ Q2’22: 1.25% ▪ Q3’22: 1.50% ▪ Q4’22: 1.25% ▪ Q1’23: 0.50% ▪ Q2’23: 0.25% ▪ Q3’23: 0.25%, last increase ▪ Q4’23: 0.00% ▪ Q1’24: 0.00% ▪ Q2’24: 0.00% ▪ Q3’24: (0.50%) first cut *Betas reflect the change in quarterly funding costs as a percentage of the change in the targeted Federal Funds Rate over the same period. na 13.1% 120.0% 0.70% 0.68% 0.10% 0.08% NOW na 56.8% 494.0% 2.80% 2.76% 0.33% 0.10% Savings na 58.7% 528.0% 3.05% 3.08% 0.41% 0.26% MMA na 80.6% 816.0% 4.56% 4.43% 0.48% 0.73% CDs na 108.0% 912.0% 5.29% 5.25% 0.73% 0.16% Brokerd CDs na 65.1% 598.0% 3.41% 3.39% 0.42% 0.32% Total Interest Bearing 0.0% 0.0% 0.0% 0.00% 0.00% 0.00% 0.00% DDA na 53.5% 488.0% 2.77% 2.75% 0.33% 0.23% Total Deposit Costs na 66.1% 902.0% 5.19% 5.00% 0.68% 2.05% Borrowings na 58.7% 544.0% 3.09% 3.04% 0.37% 0.30% Total Funding Costs Current Qtr Prior Qtr Prior Year Cycle Start LQ Chg Since 12/21 YoY Chg 3Q24 2Q24 3Q23 4Q21 50% - 0.50% 4.75% - 0. 5.00% 5.50% 5.50% Fed Funds Rate 0.25% BETAS LQ % Chg Through the Cycle** YoY % Chg Since 12/21 3Q24 Rates / Costs Cycle Start 4Q21 Prior Year 3Q23 Prior Qtr 2Q24 Current Qtr 3Q24

 

 

v3.24.3
Cover
Oct. 23, 2024
Cover [Abstract]  
Document Type 8-K
Amendment Flag false
Document Period End Date Oct. 23, 2024
Entity File Number 0-23695
Entity Registrant Name BROOKLINE BANCORP, INC.
Entity Central Index Key 0001049782
Entity Tax Identification Number 04-3402944
Entity Incorporation, State or Country Code DE
Entity Address, Address Line One 131 Clarendon Street
Entity Address, City or Town Boston
Entity Address, State or Province MA
Entity Address, Postal Zip Code 02116
City Area Code 617
Local Phone Number 425-4600
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, par value of $0.01 per share
Trading Symbol BRKL
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Brookline Bancorp (NASDAQ:BRKL)
과거 데이터 주식 차트
부터 11월(11) 2024 으로 12월(12) 2024 Brookline Bancorp 차트를 더 보려면 여기를 클릭.
Brookline Bancorp (NASDAQ:BRKL)
과거 데이터 주식 차트
부터 12월(12) 2023 으로 12월(12) 2024 Brookline Bancorp 차트를 더 보려면 여기를 클릭.