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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): January 24, 2024
_______________________________
BROOKLINE BANCORP, INC.
(Exact name of registrant as specified in its charter)
_______________________________
Delaware | 0-23695 | 04-3402944 |
(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 class | Trading Symbol(s) | Name of each exchange on which registered |
Common Stock, par value of $0.01 per share | BRKL | Nasdaq 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 January 24, 2024, the Board of Directors of Brookline Bancorp, Inc. (the “Company”) issued a press release announcing its earnings for the quarter ended December 31, 2023. Additionally, the Company announced the approval by its Board of Directors of a regular quarterly dividend of $0.135 per share payable on February 23, 2024 to stockholders of record on February 9, 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: January 24, 2024 | By: | /s/ Carl M. Carlson |
| | Carl M. Carlson |
| | Co-President, Chief Financial & Strategy Officer |
| | |
EXHIBIT 99.1
Brookline Bancorp Announces Fourth Quarter Results
Net Income of $22.9 million, EPS of $0.26
Quarterly Dividend of $0.135
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 | | 970 | | 970 | | 970 | | 970 | | 852 |
Additional paid-in capital | | 902,659 | | 901,376 | | 905,084 | | 904,174 | | 736,074 |
Retained earnings | | 438,722 | | 427,937 | | 417,328 | | 407,528 | | 412,019 |
Accumulated other comprehensive income | | (52,798) | | (81,541) | | (66,156) | | (52,688) | | (61,947) |
Treasury stock, at cost; | | | | | | | | | | |
7,354,399 shares, 7,350,981 shares, 7,734,891 shares, 7,734,891 shares, and 7,731,445 shares, respectively | | (90,909) | | (90,871) | | (94,918) | | (94,918) | | (94,873) |
Total stockholders' equity | | 1,198,644 | | 1,157,871 | | 1,162,308 | | 1,165,066 | | 992,125 |
Total liabilities and stockholders' equity | $ | 11,382,256 | $ | 11,180,555 | $ | 11,206,078 | $ | 11,522,485 | $ | 9,185,836 |
| | | | | | | | | | |
BROOKLINE BANCORP, INC. AND SUBSIDIARIES |
Consolidated Statements of Income (Unaudited) |
| Three Months Ended |
| December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 |
| (In Thousands Except Share Data) |
Interest and dividend income: | | | | | |
Loans and leases | $ | 142,948 | | $ | 136,561 | $ | 132,299 | $ | 121,931 | $ | 98,386 |
Debt securities | | 6,945 | | | 6,799 | | 8,034 | | 7,870 | | 3,497 |
Restricted equity securities | | 1,333 | | | 1,310 | | 1,673 | | 1,255 | | 766 |
Short-term investments | | 1,093 | | | 2,390 | | 3,351 | | 1,495 | | 754 |
Total interest and dividend income | | 152,319 | | | 147,060 | | 145,357 | | 132,551 | | 103,403 |
Interest expense: | | | | | |
Deposits | | 54,034 | | | 49,116 | | 43,147 | | 29,368 | | 14,185 |
Borrowed funds | | 14,730 | | | 13,874 | | 16,173 | | 17,134 | | 9,188 |
Total interest expense | | 68,764 | | | 62,990 | | 59,320 | | 46,502 | | 23,373 |
Net interest income | | 83,555 | | | 84,070 | | 86,037 | | 86,049 | | 80,030 |
Provision for credit losses on loans | | 3,851 | | | 2,947 | | 5,726 | | 25,344 | | 5,671 |
(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) | | 10.12 | % | | 10.09 | % | | 9.67 | % | | 3.43 | % | | 14.48 | % | | 8.36 | % | | 13.35 | % |
| | | | | | | |
Total stockholders’ equity | $ | 1,198,644 | | $ | 1,157,871 | | $ | 1,162,308 | | $ | 1,165,066 | | $ | 992,125 | | $ | 1,198,644 | | $ | 992,125 | |
Less: | | | | | | | |
Goodwill | | 241,222 | | | 241,222 | | | 241,222 | | | 241,222 | | | 160,427 | | | 241,222 | | | 160,427 | |
Identified intangible assets, net | | 24,207 | | | 26,172 | | | 28,126 | | | 30,080 | | | 1,781 | | | 24,207 | | | 1,781 | |
Tangible stockholders' equity | $ | 933,215 | | $ | 890,477 | | $ | 892,960 | | $ | 893,764 | | $ | 829,917 | | $ | 933,215 | | $ | 829,917 | |
| | | | | | | |
Total assets | $ | 11,382,256 | | $ | 11,180,555 | | $ | 11,206,078 | | $ | 11,522,485 | | $ | 9,185,836 | | $ | 11,382,256 | | $ | 9,185,836 | |
Less: | | | | | | | |
Goodwill | | 241,222 | | | 241,222 | | | 241,222 | | | 241,222 | | | 160,427 | | | 241,222 | | | 160,427 | |
Identified intangible assets, net | | 24,207 | | | 26,172 | | | 28,126 | | | 30,080 | | | 1,781 | | | 24,207 | | | 1,781 | |
Tangible assets | $ | 11,116,827 | | $ | 10,913,161 | | $ | 10,936,730 | | $ | 11,251,183 | | $ | 9,023,628 | | $ | 11,116,827 | | $ | 9,023,628 | |
| | | | | | | |
Tangible stockholders’ equity to tangible assets | | 8.39 | % | | 8.16 | % | | 8.16 | % | | 7.94 | % | | 9.20 | % | | 8.39 | % | | 9.20 | % |
| | | | | | | |
Tangible stockholders' equity | $ | 933,215 | | $ | 890,477 | | $ | 892,960 | | $ | 893,764 | | $ | 829,917 | | $ | 933,215 | | $ | 829,917 | |
| | | | | | | |
Number of common shares issued | | 96,998,075 | | | 96,998,075 | | | 96,998,075 | | | 96,998,075 | | | 85,177,172 | | | 96,998,075 | | | 85,177,172 | |
Less: | | | | | | | |
Treasury shares | | 7,354,399 | | | 7,350,981 | | | 7,734,891 | | | 7,734,891 | | | 7,731,445 | | | 7,354,399 | | | 7,731,445 | |
Unvested restricted shares | | 749,099 | | | 780,859 | | | 598,049 | | | 598,049 | | | 601,495 | | | 749,099 | | | 601,495 | |
Number of common shares outstanding | | 88,894,577 | | | 88,866,235 | | | 88,665,135 | | | 88,665,135 | | | 76,844,232 | | | 88,894,577 | | | 76,844,232 | |
| | | | | | | |
Tangible book value per common share | $ | 10.50 | | $ | 10.02 | | $ | 10.07 | | $ | 10.08 | | $ | 10.80 | | $ | 10.50 | | $ | 10.80 | |
| | | | | | | |
PDF Available: http://ml.globenewswire.com/Resource/Download/f058b32c-332a-4a78-8b19-dfd4bc3a1a70
EXHIBIT 99.2
January 25, 2024 1 4Q 2023 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 $261 million. x Cash and Securities increased $8 million. x Customer deposits decline $5 million and Brokered deposits down $13 million. x Borrowings increased $242 million. x Margin declines 3 bps to 3.15%. x Pretax, preprov. income of $32.4 million. 3 Fortress Balance Sheet / Asset Quality x NPAs to total assets of 0.40%. x Net charge offs $7.1 million (0.30% annualized) largely previously reserved. x The reserve for loan losses represents a coverage ratio of 122 basis points. x Total Risk Based Capital of 12.4% and Tangible Common Equity (TCE) of 8.4%. Quarterly Net Income of $22.9 million and EPS of $0.26 Quarterly Dividend of $0.135 Per Share
Summary Income Statement Amounts as presented may differ slightly from the Company’s Earnings Release due to rounding to foot schedules presented. 4 ▪ Net Income of $22.7 million or $0.26 per share. ▪ Noninterest income at $8 million, $2.5 million higher than Q3 driven by derivative and participation activity as well as other noninterest income. ▪ Noninterest expense increased $1.5 million linked quarter due to higher compensation and benefits. $800 thousand from Q3 driven by loan growth. ▪ The provision for credit losses was $3.8 - 21% (7.5) 36.1 - 1% (0.3) 28.9 28.6 Pretax income million for the quarter, an increase of - 11% (0.7) 6.4 - 8% (0.5) 6.2 5.7 Provision for taxes - 23% $ (6.8) $ 29.7 1% $ 0.2 $ 22.7 $ 22.9 Net Income - 33% $ (0.13) $ 0.39 0% $ - $ 0.26 $ 0.26 EPS 16% 11,971 77,065 0% 65 88,971 89,036 Avg diluted shares (000s) - 0.53% 1.34% 0.00% 0.81% 0.81% Return on Assets - 4.36% 14.48% 0.03% 10.09% 10.12% Return on Tangible Equity - 0.66% 3.81% - 0.03% 3.18% 3.15% Net Interest Margin 11.68% 53.01% 0.30% 64.39% 64.69% Efficiency Ratio Year over Year (YoY) Linked Quarter (LQ) %Δ 4Q22 Δ %Δ Δ 4Q23 3Q23 $m, except per share amts 4% $ 80.0 $ 3.6 - 1% $ (0.5) $ 83.6 $ 84.1 Net interest income - 8% 8.7 (0.7) 45% 2.5 8.0 5.5 Noninterest income - 100% (0.3) 0.3 - - - - Security gains (losses) 3% 2.6 89.0 2% 2.0 89.6 91.6 Total Revenue 27% 12.6 46.6 3% 1.5 57.7 59.2 Noninterest expense - 100% (0.6) 0.6 - - - - Merger expense - 22% (9.4) 41.8 2% 0.5 31.9 32.4 Pretax, Preprov. Net Rev. - 33% (1.9) 5.7 27% 0.8 3.0 3.8 Provision for credit losses
Margin – Yields and Costs LQ Δ Prior Quarter 4Q23 Yield Interest Avg Bal Yield Interest Avg Bal Yield Interest Avg Bal $ millions 0.17% $ 6.5 $ 162 5.84% $ 136.6 $ 9,359 6.01% $ 143.1 $ 9,521 Loans - 0.08% (1.2) (99) 3.74% 10.6 1,128 3.66% 9.4 1,029 Investments & earning cash 0.17% $ 5.3 $ 63 5.61% $ 147.2 $ 10,487 5.78% $ 152.5 $ 10,550 Interest Earning Assets 0.23% $ 5.0 $ 123 2.89% $ 49.1 $ 6,744 3.12% $ 54.1 $ 6,867 Interest bearing deposits 0.17% 0.8 29 4.69% 13.9 1,157 4.86% 14.7 1,186 Borrowings 0.23% $ 5.8 $ 152 3.16% $ 63.0 $ 7,901 3.39% $ 68.8 $ 8,053 Interest Bearing Liabilities - 0.06% 2.45% 2.39% Net interest spread - 0.03% $ (0.5) 3.18% $ 84.2 3.15% $ 83.7 Net interest income, TEB / Margin - 0.1 0.1 LESS: Tax Equivalent Basis (TEB) Adj. (0.5) $ 84.1 $ 83.6 $ Net Interest Income 4.50% 7.50% 4.39% 4.30% 4.64% 4.43% 4.00% 3.88% 5.50% 8.50% 5.43% 5.3 1% 5.53% 5.04% 4.61% 4.57% 5.50% 8.50% 5.47% 5.38% 5.44% 4.25% 3.85% 3.88% Fed Funds (upper) Prime 1M LIBOR SOFR Ameribor 2Y Treasury 5Y Treasury 10Y Treasury 12/31/2022 3/31/2023 6/30/2023 9/30/2023 12/31/2023 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 $201 million %Δ Δ 4Q22 Δ 3Q23 4Q23 $m, except per share amts as loan growth was offset by declines 26% $ 1,998 $ 7,644 $ 261 $ 9,381 $ 9,642 Gross Loans, investment in other assets. 20% (20) (98) 1 (119) (118) Allowance for loan losses 26% 1,978 7,546 262 9,262 9,524 Net Loans ▪ Securities increase $36 million due to mark to market, and Cash equivalents down $28 million. ▪ Loans increased $261 million. ▪ The allowance for loan losses declined $1 million. ▪ ALLL coverage of 1.22%. ▪ Deposits decline $18 million. ▪ Borrowings increased $242 million. ▪ Tangible Equity to Tangible Assets of 8.39%*. - 0.77% 9.16% 0.23% 8.16% 8.39% Tang. Equity / Tang. Assets - 4.40% 117.20% 3.29% 109.51% 112.80% Loans / Deposits - 0.07% 1.29% - 0.05% 1.27% 1.22% ALLL / Gross Loans 39% 259 657 36 880 916 Securities - 65% (250) 383 (28) 161 133 Cash & equivalents 64% 103 162 (2) 267 265 Intangibles 24% 106 438 (67) 611 544 Other assets 24% $ 2,196 $ 9,186 $ 201 $ 11,181 $ 11,382 Total Assets 31% $ 2,026 $ 6,522 $ (18) $ 8,566 $ 8,548 Deposits - 4% (56) 1,433 242 1,135 1,377 Borrowings - 5% (1) 21 (1) 21 20 Reserve for unfunded loans 9% 20 218 (63) 301 238 Other Liabilities 24% 1,989 8,194 160 10,023 10,183 Total Liabilities 21% 207 992 41 1,158 1,199 Stockholders' Equity 24% $ 2,196 $ 9,186 $ 201 $ 11,181 $ 11,382 Total Liabilities & Equity - 3% $ (0.30) $ 10.80 $ 0.48 $ 10.02 $ 10.50 TBV per share 16% 12,051 76,844 29 88,866 88,895 Actual shares outstanding (000) 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. *Reconciliation of Non - GAAP measures in Earnings Release. 6
Loan and Deposit Composition 15% 14% 60% 11% Loans 20% 8% 20% 24% 18% 10% 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 4Q22 Δ 3Q23 4Q23 $ millions 31% $1,361 $ 4,404 $ 95 $ 5,670 $ 5,765 CRE 29% 230 799 118 911 1,029 Commercial S 13% 154 1,217 41 1,330 1,371 Equipment Finance OA N 21% 253 1,224 7 1,470 1,477 Consumer L Total Loans $ 9,642 $ 9,381 $ 261 $ 7,644 $1,998 26% - 7% $ (125) $ 1,803 $ (67) $ 1,745 Demand deposits $ 1,678 22% 118 544 14 648 NOW 662 119% 907 762 43 1,626 Savings 1,669 - 4% (92) 2,175 (78) 2,161 2,083 Money market 70% 647 928 83 1,492 1,575 CDs 184% 571 310 (13) 894 881 Brokered deposits 31% $2,026 $ 6,522 $ (18) $ 8,566 $ 8,548 Total Deposits Linked Quarter (LQ) 7 Year over Year (YoY) DEPOSITS
Capital Strength 8 ▪ As of December 31, 2023, 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* Excess Capital Excess Ratio Operating Targets Policy Minimums "Well Capitalized" Minimum Dec - 24 $ millions $ 364.3 3.8% ≥ 8.0% ≥ 7.5% ≥ 6.5% ≥ 4.5% 10.3% Tier 1 Common / RWA $ 228.7 2.4% ≥ 9.5% ≥ 9.0% ≥ 8.0% ≥ 6.0% 10.4% Tier 1 / RWA $ 230.7 2.4% ≥ 11.5% ≥ 11.0% ≥ 10.0% ≥ 8.0% 12.4% Total Risk Based Capital $ 447.2 4.0% ≥ 6.0% ≥ 5.5% ≥ 5.0% ≥ 5.0% 9.0% 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 February 23, 2024 to stockholders of record on February 9, 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 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
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 BOSTON / EASTERN MASSACHUSETTS (15) WESTCHESTER / LOWER HUDSON VALLEY, NY (29) (22) Subsidiary of Eastern Funding 11
Non Performing Assets and Net Charge Offs Linked Quarter (LQ) 4Q23 3Q23 Δ Year over Year (YoY) 4Q22 Δ Non Performing Assets (NPAs), in millions Amounts as presented may differ slightly from the Company’s Earnings Release due to rounding to foot schedules presented. 12 ▪ NPLs are down $ 7 . 69 million from the prior quarter . $ 18.3 $ 1.3 $ (7.3) $ 26.9 $ 19.6 CRE ▪ Net charge offs of $7.1 8.7 10.2 (0.5) 19.4 18.9 C&I million in the quarter. 1.7 3.4 0.2 4.9 5.1 Consumer 28.7 14.9 (7.6) 51.2 43.6 Total Non Performing Loans (NPLs) 0.8 - 0.8 - 0.8 Other real estate owned 0.5 0.4 0.6 0.3 0.9 Other repossessed assets $ 30.0 $ 15.3 $ (6.2) $ 51.5 $ 45.3 Total NPAs 0.26% 0.19% - 0.10% 0.55% 0.45% NPLs / Total Loans 0.23% 0.17% - 0.06% 0.46% 0.40% NPAs / Total Assets Net Charge Offs (NCOs), in millions $ 1.1 $ - $ 1.1 $ - $ 1.1 CRE loans 5.7 0.3 (5.0) 11.0 6.0 C&I loans - - - - - Consumer loans $ 6.8 $ 0.3 $ (3.9) $ 11.0 $ 7.1 Total Net Charge Offs 0.28% 0.02% - 0.17% 0.47% 0.30% NCOs / Loans (annualized)
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. ▪ The September Baseline economic forecast was mixed from the June forecast: ▪ GDP – FAVORABLE ▪ Unemployment – slightly FAVORABLE ▪ CRE Price Index - FAVORABLE ▪ We have maintained our forecast weightings: ▪ 60% Moderate Recession; ▪ 40% Baseline; and ▪ 0% Stronger Near Term Growth. recast om Prior Fo Change fr Q'23 CURRENT: 4 '23 PRIOR: 3Q Baseline Scenario 2025 2024 2023 2025 2024 2023 2025 2024 2023 1,997 2,018 1,912 23,116 22,738 22,353 21,119 20,720 20,441 GDP (0.1) (0.1) (0.1) 4.1 4.0 3.6 4.2 4.1 3.7 Unemployment Rate - 0.1 - 4.2 5.2 5.0 4.2 5.1 5.0 Fed Fund Rate 0.3 0.3 0.2 4.1 4.2 4.0 3.8 3.9 3.8 10 Treasury 0.9 0.1 (0.2) 345.3 322.3 342.9 344.4 322.2 343.1 CRE Price Index 13 Stronger Near Term Growth (S1) Baseline Moderate Recession (S3) Weightings of Moody's Forecast for CECL Model 4Q 2023 60% 40% 0% 0% 40% 60% 3Q 2023 0% 40% 60% 2Q 2023 0% 40% 60% 1Q 2023 0% 40% 60% 4Q 2022
Investment CRE 50% Commercial 20% Equipment Finance 15% Consumer 15% 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 $ 323 17% 231 12% 208 11% 117 6% 164 9% 207 11% 186 10% 53 3% 154 8% 104 5% 45 2% 15 1% 88 5% Residential Home Equity Other Consumer Purchase Mtge $ 1,063 72% 344 23% 50 3% 20 1% Total $ 1,477 100% - Apartment Retail Office Industrial Mixed Use 1 - 4 Family Hotel Land Other 355 $ 1,269 $ 119 836 12 774 27 597 15 443 27 5 27 192 3 39 33 $ 1,388 29% 848 18% 801 17% 612 13% 470 10% 32 1% 195 4% 39 1% 388 8% Total $ 4,471 $ 302 $ 4,773 100% Total $ 1,895 100% Total $ 1,497 100% 41% $ 617 Laundry Eastern Funding Core 12% 176 Fitness/Macrolease 4% 58 Grocery 2% 23 Dry Cleaning 1% 22 Restaurant 1% 13 Car Wash 11% 169 EF CRE 4% 57 Other EF 11% 159 Tow Truck Specialty Vehicle 4% 63 Heavy Tow 3% 44 FedEx 1% 22 Trailer 5% 74 Other Vehicle Total Loans Outstanding $ 9,642 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 $4,772 $1,895 $1,497 $1,477 4Q23 Loans outstanding ($millions) Owner Occupied CRE included in Commercial and Equipment Finance 14
CRE – Loan to Value (LTV) 39% 41% 46% 31% 42% 15% 32% 43% 54% 49% 47% 48% 63% 42% 57% 52% 46% 36% 12% 11% 6% 5% 16% 16% 11% 8% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Apartment Retail Office Medical Hotel Restaurant Other Exposures by LTV Industrial 50% and lower Mixed Use 50 - 70 70 - 80 80+ Non Owner Occupied CRE and Multifamily Exposures at December 31, 2023. 40% 49% 1% 10% Overall 51% LTV 15
26% 34% 28% 19% 22% 11% 39% 45% 21% 8% 7% 7% 4% 9% 12% 14% 7% 9% 14% 8% 14% 9% 16% 9% 23% 14% 8% 12% 7% 6% 14% 9% 0% 6% 10% 16% 17% 25% 28% 22% 31% 3 0% 12% 24% 18% 20% 10% 13% 20% 32% 7% 17% 6% 5% 11% 14% 2% 19% 12% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Apartment Retail Office 2017 and Before Restaurant Other Non Owner Occupied CRE and Multifamily Exposures at December 31, 2023. Exposures by Year of Origination Industrial Mixed Use Medical Hotel 2018 2019 2020 2021 2022 2023 8 % CRE - Vintage 16 % 20 % 9 % 12 % 8 % 27 % 16
CRE Maturities, excludes construction 6% 8% 86% 1 - 12 months 13 - 24 months Remaining 163 150 130 58 54 27 22 4 3 $200 $150 $100 $50 $0 CRE Maturities Next 24 Months $77 $58 $73 $4 $88 CRE Maturities Next 24 Months $107 $68 $93 $120 $100 $80 $60 $40 $20 $0 CRE Maturities – Next 24 Months ($millions) 17 Number of Average Loan Loan Size Outstanding Loans Size $10MM+ $5MM - $10MM $1MM - $5MM Under $1MM $284 86 181 58 17 13 86 171 $16.7 6.6 2.1 0.3 Total $610 287 $2.1 4Q23 $ millions $ millions
Office Maturities, excludes construction 16% 8% 76% 1 - 12 months 13 - 24 months Remaining $24 Office Maturities Next 24 Months $31 $17 $23 $20 $1 $21 $12 - 35 30 25 20 15 10 5 Millions 18 Office Maturities by Bank / City Submarket ($millions) Average Loan Size Number of Loans Outstanding Bank / Submarket component $7.0 17 $112.6 Brookline Bank 16.1 4 64.2 Boston $2.2 16 $35.0 Bank Rhode Island 3.2 8 25.5 Providence/Cranston/Pawtucket $1.9 1 $1.9 PCSB 4Q23
Consumer Loans – LTV / FICO 19 700+ 85% 650 - 699 8% 600 - 649 2% 599 - N/A 3% 50% or less 31% 50% - 69% 38% 70% - 80% 26% 80%+ 5% 700+ 94% 50% or less 35% 50% - 69% 31% 70% - 80% 32% 80%+ 2% Resid. 1 - 4 58% LTV 2% Resid. 1 - 4 FICO 650 - 699 3% Home Equity FICO Home Equity 56% LTV 4Q23
Well Diversified Deposit Base – 67% of Deposits are Insured* Consumer Deposits 53% (74% insured) Commercial Deposits 44% (57% insured) Municipal Deposits 3% * Insured includes deposits which are collateralized. Excludes brokered deposits which are 100% FDIC insured and have laddered maturities. 33% of Non Brokered Deposits Uninsured 20 4Q23
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 4.2%. UST 49% 21 Agency 22% Corp 2% MBS 23% CMO 2% Municipals 2% 4Q23 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 3.0 2.90% $ (26) $ 445 $ 471 $ 475 U.S. Treasuries 4.0 2.68% (20) 201 221 217 Agency Debentures 1.6 4.15% - 20 20 22 Corp Bonds 4.8 3.33% (20) 210 230 243 Agency MBS 4.2 2.83% (2) 21 23 24 Agency CMO 3.1 4.70% - 19 19 20 Municipals 3.6 3.01% $ (68) $ 916 $ 984 $ 1,001 Total
Interest Rate Risk Floating (<3m) 32% Adj. 24% Fixed 44% 4Q23 Loan Originations, $791 million Total Loan Portfolio Mix – Duration 2.5 0.3% 0.1% - 0.1% - 0.4% - 2.8% - 3.7% - 5.0% - 6.2% 0.5% 1.3% 1.9% 2.3% Cumulative Net Interest Income Change by Quarter 12/31/2023 Flat Balance Sheet , simulations reflect a product weighted beta of 39% on total deposits. - 100bps Ramp Forward - Implied Rates +200bps Ramp Q1 Q4 Q2 Q3 Floating (<3m) 20% 22 Adj. 42% Fixed 38%
Deposit and Funding Betas - Percentage Change in Cost versus Change in Federal Funds Rate ▪ The Federal Reserve began increasing the Federal Funds rate in March 2022 and has increased rates 525 basis points through December 2023. ▪ Q1’22: 0.25% ▪ Q2’22: 1.25% ▪ Q3’22: 1.50% ▪ Q4’22: 1.25% ▪ Q1’23: 0.50% ▪ Q2’23: 0.25% ▪ Q3’23: 0.25% ▪ Q4’23: 0.00% *Betas reflect the change in quarterly funding costs as a percentage of the change in the targeted Federal Funds Rate over the same period. ▪ While the Betas for the product groupings do not reflect the flow of funds in or out of a product category, the overall Interest Bearing, Total Deposit and Total Funding lines capture the period impact. ▪ As an example, Through the Cycle, the Federal Funds Rate has increased 525 basis points from 25 to 550 basis points. Brookline Bancorp’s Total Deposit Costs has increased from 0.23% to 2.50% or 227 basis points. This represents 43.2%, the Beta, of the 525 basis point change in the Federal Funds Rate. ▪ In the latest quarter or linked quarter (LQ), the Federal Funds Rate remained flat at 5.50% and the cost of total deposits increased 21 basis points. A quarterly Beta cannot be calculated since there was no change in the Fed Funds Rate for the period. Through the Cycle** LQ Chg Since 12/21 BETAS* na 11.7% NOW na 46.8% Savings na 52.3% MMA na 57.8% CDs na 95.1% Brokerd CDs Total Interest Bearing 53.5% na 4Q23 0.0% DDA 0.0% Total Deposit Costs 43.2% na Borrowings 53.5% na Total Funding Costs 47.4% na Change in Fed Funds Rate 5.25% 0.00% * Betas based on reported quarterly cost of funds ** Through the cycle betas reflect the change in cost of funds as a percentage of the change in the Federal Funds Rate with the starting point for the analysis being the quarter ended 12/31/2021. The Federal Funds Rate (upper) was 0.25% at 12/31/2021. 23
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Brookline Bancorp (NASDAQ:BRKL)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
Brookline Bancorp (NASDAQ:BRKL)
Gráfica de Acción Histórica
De May 2023 a May 2024