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)
_______________________________
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 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, 2024 | By: | /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 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 loans | 4,832 | | 5,607 | | 7,423 | | 3,851 | | 2,947 | |
Provision (credit) for credit losses on investments | (172) | | (39) | | (44) | | (76) | | 84 | |
Non-interest income | 6,348 | | 6,396 | | 6,284 | | 8,027 | | 5,508 | |
Non-interest expense | 57,948 | | 59,184 | | 61,014 | | 59,244 | | 57,679 | |
Income before provision for income taxes | 26,748 | | 21,645 | | 19,479 | | 28,563 | | 28,868 | |
Net income | 20,142 | | 16,372 | | 14,665 | | 22,888 | | 22,701 | |
| | | | | | | | | | |
Performance Ratios: | | | | | | | | | | |
Net interest margin (1) | 3.07 | % | 3.00 | % | 3.06 | % | 3.15 | % | 3.18 | % |
Interest-rate spread (1) | 2.26 | % | 2.14 | % | 2.21 | % | 2.39 | % | 2.45 | % |
Return on average assets (annualized) | 0.70 | % | 0.57 | % | 0.51 | % | 0.81 | % | 0.81 | % |
Return on average tangible assets (annualized) (non-GAAP) | 0.72 | % | 0.59 | % | 0.53 | % | 0.83 | % | 0.83 | % |
Return on average stockholders' equity (annualized) | 6.63 | % | 5.49 | % | 4.88 | % | 7.82 | % | 7.78 | % |
Return on average tangible stockholders' equity (annualized) (non-GAAP) | 8.44 | % | 7.04 | % | 6.26 | % | 10.12 | % | 10.09 | % |
Efficiency ratio (2) | 64.85 | % | 68.50 | % | 69.44 | % | 64.69 | % | 64.39 | % |
| | | | | | | | | | |
Per Common Share Data: | | | | | | | | | | |
Net income — Basic | $ | 0.23 | | $ | 0.18 | | $ | 0.16 | | $ | 0.26 | | $ | 0.26 | |
Net income — Diluted | 0.23 | | 0.18 | | 0.16 | | 0.26 | | 0.26 | |
Cash dividends declared | 0.135 | | 0.135 | | 0.135 | | 0.135 | | 0.135 | |
Book value per share (end of period) | 13.81 | | 13.48 | | 13.43 | | 13.48 | | 13.03 | |
Tangible book value per share (end of period) (non-GAAP) | 10.89 | | 10.53 | | 10.47 | | 10.50 | | 10.02 | |
Stock price (end of period) | 10.09 | | 8.35 | | 9.96 | | 10.91 | | 9.11 | |
| | | | | | | | | | |
Balance Sheet: | | | | | | | | | | |
Total assets | $ | 11,676,721 | | $ | 11,635,292 | | $ | 11,542,731 | | $ | 11,382,256 | | $ | 11,180,555 | |
Total loans and leases | 9,755,236 | | 9,721,137 | | 9,655,086 | | 9,641,589 | | 9,380,782 | |
Total deposits | 8,732,271 | | 8,737,036 | | 8,718,653 | | 8,548,125 | | 8,566,013 | |
Total stockholders’ equity | 1,230,362 | | 1,198,480 | | 1,194,231 | | 1,198,644 | | 1,157,871 | |
| | | | | | | | | | |
Asset Quality: | | | | | | | | | | |
Nonperforming assets | $ | 72,821 | | $ | 62,683 | | $ | 42,489 | | $ | 45,324 | | $ | 51,540 | |
Nonperforming assets as a percentage of total assets | 0.62 | % | 0.54 | % | 0.37 | % | 0.40 | % | 0.46 | % |
Allowance for loan and lease losses | $ | 127,316 | | $ | 121,750 | | $ | 120,124 | | $ | 117,522 | | $ | 119,081 | |
Allowance for loan and lease losses as a percentage of total loans and leases | 1.31 | % | 1.25 | % | 1.24 | % | 1.22 | % | 1.27 | % |
Net loan and lease charge-offs | $ | 3,808 | | $ | 8,387 | | $ | 8,781 | | $ | 7,141 | | $ | 10,974 | |
Net loan and lease charge-offs as a percentage of average loans and leases (annualized) | 0.16 | % | 0.35 | % | 0.36 | % | 0.30 | % | 0.47 | % |
| | | | | | | | | | |
Capital Ratios: | | | | | | | | | | |
Stockholders’ equity to total assets | 10.54 | % | 10.30 | % | 10.35 | % | 10.53 | % | 10.36 | % |
Tangible stockholders’ equity to tangible assets (non-GAAP) | 8.50 | % | 8.23 | % | 8.25 | % | 8.39 | % | 8.16 | % |
| | | | | | | | | | |
(1) Calculated on a fully tax-equivalent basis. |
(2) Calculated as non-interest expense as a percentage of net interest income plus non-interest income. |
BROOKLINE BANCORP, INC. AND SUBSIDIARIES Consolidated Balance Sheets (Unaudited)
| |
| | | | | | | | | | |
| September 30, 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 investments | 325,721 | | 283,017 | | 256,178 | | 98,513 | | 127,495 | |
Total cash and cash equivalents | 407,889 | | 343,084 | | 301,886 | | 133,027 | | 161,001 | |
Investment securities available-for-sale | 855,391 | | 856,439 | | 865,798 | | 916,601 | | 880,412 | |
Total investment securities | 855,391 | | 856,439 | | 865,798 | | 916,601 | | 880,412 | |
Allowance for investment security losses | (186 | ) | (359 | ) | (398 | ) | (441 | ) | (517 | ) |
Net investment securities | 855,205 | | 856,080 | | 865,400 | | 916,160 | | 879,895 | |
Loans and leases held-for-sale | — | | — | | 6,717 | | — | | — | |
Loans and leases: | | | | | | | | | | |
Commercial real estate loans | 5,779,290 | | 5,782,111 | | 5,755,239 | | 5,764,529 | | 5,669,768 | |
Commercial loans and leases | 2,453,038 | | 2,443,530 | | 2,416,904 | | 2,399,668 | | 2,241,375 | |
Consumer loans | 1,522,908 | | 1,495,496 | | 1,482,943 | | 1,477,392 | | 1,469,639 | |
Total loans and leases | 9,755,236 | | 9,721,137 | | 9,655,086 | | 9,641,589 | | 9,380,782 | |
Allowance for loan and lease losses | (127,316 | ) | (121,750 | ) | (120,124 | ) | (117,522 | ) | (119,081 | ) |
Net loans and leases | 9,627,920 | | 9,599,387 | | 9,534,962 | | 9,524,067 | | 9,261,701 | |
Restricted equity securities | 82,675 | | 78,963 | | 74,709 | | 77,595 | | 65,460 | |
Premises and equipment, net of accumulated depreciation | 86,925 | | 88,378 | | 89,707 | | 89,853 | | 90,476 | |
Right-of-use asset operating leases | 41,934 | | 35,691 | | 33,133 | | 30,863 | | 31,619 | |
Deferred tax asset | 50,827 | | 60,032 | | 60,484 | | 56,952 | | 74,491 | |
Goodwill | 241,222 | | 241,222 | | 241,222 | | 241,222 | | 241,222 | |
Identified intangible assets, net of accumulated amortization | 19,162 | | 20,830 | | 22,499 | | 24,207 | | 26,172 | |
Other real estate owned and repossessed assets | 1,579 | | 1,974 | | 1,817 | | 1,694 | | 299 | |
Other assets | 261,383 | | 309,651 | | 310,195 | | 286,616 | | 348,219 | |
Total assets | $ | 11,676,721 | | $ | 11,635,292 | | $ | 11,542,731 | | $ | 11,382,256 | | $ | 11,180,555 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | | | | | |
Deposits: | | | | | | | | | | |
Demand checking accounts | $ | 1,681,858 | | $ | 1,638,378 | | $ | 1,629,371 | | $ | 1,678,406 | | $ | 1,745,137 | |
NOW accounts | 637,374 | | 647,370 | | 654,748 | | 661,863 | | 647,476 | |
Savings accounts | 1,736,989 | | 1,735,857 | | 1,727,893 | | 1,669,018 | | 1,625,804 | |
Money market accounts | 2,041,185 | | 2,073,557 | | 2,065,569 | | 2,082,810 | | 2,161,359 | |
Certificate of deposit accounts | 1,819,353 | | 1,718,414 | | 1,670,147 | | 1,574,855 | | 1,491,844 | |
Brokered deposit accounts | 815,512 | | 923,460 | | 970,925 | | 881,173 | | 894,393 | |
Total deposits | 8,732,271 | | 8,737,036 | | 8,718,653 | | 8,548,125 | | 8,566,013 | |
Borrowed funds: | | | | | | | | | | |
Advances from the FHLB | 1,345,003 | | 1,265,079 | | 1,150,153 | | 1,223,226 | | 899,304 | |
Subordinated debentures and notes | 84,293 | | 84,258 | | 84,223 | | 84,188 | | 84,152 | |
Other borrowed funds | 68,251 | | 80,125 | | 127,505 | | 69,256 | | 151,612 | |
Total borrowed funds | 1,497,547 | | 1,429,462 | | 1,361,881 | | 1,376,670 | | 1,135,068 | |
Operating lease liabilities | 43,266 | | 37,102 | | 34,235 | | 31,998 | | 32,807 | |
Mortgagors’ escrow accounts | 14,456 | | 17,117 | | 16,245 | | 17,239 | | 12,578 | |
Reserve for unfunded credits | 6,859 | | 11,400 | | 15,807 | | 19,767 | | 21,497 | |
Accrued expenses and other liabilities | 151,960 | | 204,695 | | 201,679 | | 189,813 | | 254,721 | |
Total liabilities | 10,446,359 | | 10,436,812 | | 10,348,500 | | 10,183,612 | | 10,022,684 | |
Stockholders' equity: | | | | | | | | | | |
Common stock, $0.01 par value; 200,000,000 shares authorized; 96,998,075 shares issued, 96,998,075 shares issued, 96,998,075 shares issued, 96,998,075 shares issued, and 96,998,075 shares issued, respectively | 970 | | 970 | | 970 | | 970 | | 970 | |
Additional paid-in capital | 901,562 | | 904,775 | | 903,726 | | 902,659 | | 901,376 | |
Retained earnings | 453,555 | | 445,560 | | 441,285 | | 438,722 | | 427,937 | |
Accumulated other comprehensive income | (38,081 | ) | (61,693 | ) | (60,841 | ) | (52,798 | ) | (81,541 | ) |
Treasury stock, at cost; | | | | | | | | | | |
7,015,843, 7,373,009, 7,354,399, 7,354,399 and 7,350,981 shares, respectively | (87,644 | ) | (91,132 | ) | (90,909 | ) | (90,909 | ) | (90,871 | ) |
Total stockholders' equity | 1,230,362 | | 1,198,480 | | 1,194,231 | | 1,198,644 | | 1,157,871 | |
Total liabilities and stockholders' equity | $ | 11,676,721 | | $ | 11,635,292 | | $ | 11,542,731 | | $ | 11,382,256 | | $ | 11,180,555 | |
BROOKLINE BANCORP, INC. AND SUBSIDIARIES Consolidated Statements of Income (Unaudited)
|
| Three Months Ended |
| September 30, 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 securities | 6,473 | | 6,480 | | 6,878 | | 6,945 | | 6,799 |
Restricted equity securities | 1,458 | | 1,376 | | 1,492 | | 1,333 | | 1,310 |
Short-term investments | 1,986 | | 1,914 | | 1,824 | | 1,093 | | 2,390 |
Total interest and dividend income | 159,560 | | 155,355 | | 155,459 | | 152,319 | | 147,060 |
Interest expense: | | | | | | | | | |
Deposits | 59,796 | | 59,721 | | 56,884 | | 54,034 | | 49,116 |
Borrowed funds | 16,756 | | 15,633 | | 16,987 | | 14,730 | | 13,874 |
Total interest expense | 76,552 | | 75,354 | | 73,871 | | 68,764 | | 62,990 |
Net interest income | 83,008 | | 80,001 | | 81,588 | | 83,555 | | 84,070 |
Provision for credit losses on loans | 4,832 | | 5,607 | | 7,423 | | 3,851 | | 2,947 |
Provision (credit) for credit losses on investments | (172 | ) | (39 | ) | (44 | ) | (76 | ) | 84 |
Net interest income after provision for credit losses | 78,348 | | 74,433 | | 74,209 | | 79,780 | | 81,039 |
Non-interest income: | | | | | | | | | |
Deposit fees | 2,353 | | 3,001 | | 2,897 | | 3,064 | | 3,024 |
Loan fees | 464 | | 702 | | 789 | | 515 | | 639 |
Loan level derivative income, net | — | | 106 | | 437 | | 778 | | 376 |
Gain on sales of loans and leases held-for-sale | 415 | | 130 | | — | | 410 | | 225 |
Other | 3,116 | | 2,457 | | 2,161 | | 3,260 | | 1,244 |
Total non-interest income | 6,348 | | 6,396 | | 6,284 | | 8,027 | | 5,508 |
Non-interest expense: | | | | | | | | | |
Compensation and employee benefits | 35,130 | | 34,762 | | 36,629 | | 35,401 | | 33,491 |
Occupancy | 5,343 | | 5,551 | | 5,769 | | 5,127 | | 4,983 |
Equipment and data processing | 6,831 | | 6,732 | | 7,031 | | 7,245 | | 6,766 |
Professional services | 2,143 | | 1,745 | | 1,900 | | 1,442 | | 2,368 |
FDIC insurance | 2,118 | | 2,025 | | 1,884 | | 1,839 | | 2,152 |
Advertising and marketing | 859 | | 1,504 | | 1,574 | | 758 | | 1,174 |
Amortization of identified intangible assets | 1,668 | | 1,669 | | 1,708 | | 1,965 | | 1,955 |
Merger and restructuring expense | — | | 823 | | — | | — | | — |
Other | 3,856 | | 4,373 | | 4,519 | | 5,467 | | 4,790 |
Total non-interest expense | 57,948 | | 59,184 | | 61,014 | | 59,244 | | 57,679 |
Income before provision for income taxes | 26,748 | | 21,645 | | 19,479 | | 28,563 | | 28,868 |
Provision for income taxes | 6,606 | | 5,273 | | 4,814 | | 5,675 | | 6,167 |
Net income | $ | 20,142 | | $ | 16,372 | | $ | 14,665 | | $ | 22,888 | | $ | 22,701 |
Earnings per common share: | | | | | | | | | |
Basic | $ | 0.23 | | $ | 0.18 | | $ | 0.16 | | $ | 0.26 | | $ | 0.26 |
Diluted | $ | 0.23 | | $ | 0.18 | | $ | 0.16 | | $ | 0.26 | | $ | 0.26 |
Weighted average common shares outstanding during the period: | | | | | | | | | |
Basic | 89,033,463 | | 88,904,692 | | 88,894,577 | | 88,867,159 | | 88,795,270 |
Diluted | 89,319,611 | | 89,222,315 | | 89,181,508 | | 89,035,505 | | 88,971,210 |
Dividends paid per common share | $ | 0.135 | | $ | 0.135 | | $ | 0.135 | | $ | 0.135 | | $ | 0.135 |
BROOKLINE BANCORP, INC. AND SUBSIDIARIES Consolidated Statements of Income (Unaudited)
|
|
| Nine Months Ended September 30, |
| 2024 | | 2023 |
| (In Thousands Except Share Data) |
Interest and dividend income: | | | |
Loans and leases | $ | 440,493 | | $ | 390,791 |
Debt securities | 19,831 | | 22,703 |
Restricted equity securities | 4,326 | | 4,238 |
Short-term investments | 5,724 | | 7,236 |
Total interest and dividend income | 470,374 | | 424,968 |
Interest expense: | | | |
Deposits | 176,401 | | 121,631 |
Borrowed funds | 49,376 | | 47,181 |
Total interest expense | 225,777 | | 168,812 |
Net interest income | 244,597 | | 256,156 |
Provision for credit losses on loans | 17,862 | | 34,017 |
Provision (credit) for credit losses on investments | (255 | ) | 415 |
Net interest income after provision for credit losses | 226,990 | | 221,724 |
Non-interest income: | | | |
Deposit Fees | 8,251 | | 8,547 |
Loan Fees | 1,955 | | 1,521 |
Loan level derivative income, net | 543 | | 3,112 |
Gain on investment securities, net | — | | 1,704 |
Gain on sales of loans and leases held-for-sale | 545 | | 2,171 |
Other | 7,734 | | 6,852 |
Total non-interest income | 19,028 | | 23,907 |
Non-interest expense: | | | |
Compensation and employee benefits | 106,521 | | 103,494 |
Occupancy | 16,663 | | 15,076 |
Equipment and data processing | 20,594 | | 19,759 |
Professional services | 5,788 | | 5,784 |
FDIC insurance | 6,027 | | 6,005 |
Advertising and marketing | 3,937 | | 3,966 |
Amortization of identified intangible assets | 5,045 | | 5,875 |
Merger and restructuring expense | 823 | | 7,411 |
Other | 12,748 | | 12,910 |
Total non-interest expense | 178,146 | | 180,280 |
Income before provision for income taxes | 67,872 | | 65,351 |
Provision for income taxes | 16,693 | | 13,240 |
Net income | $ | 51,179 | | $ | 52,111 |
Earnings per common share: | | | |
Basic | $ | 0.58 | | $ | 0.59 |
Diluted | $ | 0.57 | | $ | 0.59 |
Weighted average common shares outstanding during the period: | | | |
Basic | 88,944,569 | | 88,016,190 |
Diluted | 89,241,470 | | 88,253,361 |
Dividends paid per common share | $ | 0.405 | | $ | 0.405 |
BROOKLINE BANCORP, INC. AND SUBSIDIARIES Asset Quality Analysis (Unaudited)
| |
| At and for the Three Months Ended | |
| September 30, 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 mortgage | 1,751 | | — | | — | | — | | 1,318 | |
Construction | — | | — | | — | | — | | 2,316 | |
Total commercial real estate loans | 13,346 | | 11,659 | | 18,394 | | 19,608 | | 26,897 | |
| | | | | | | | | | |
Commercial | 15,734 | | 16,636 | | 3,096 | | 3,886 | | 5,406 | |
Equipment financing | 37,223 | | 27,128 | | 13,668 | | 14,984 | | 13,974 | |
Total commercial loans and leases | 52,957 | | 43,764 | | 16,764 | | 18,870 | | 19,380 | |
| | | | | | | | | | |
Residential mortgage | 3,862 | | 4,495 | | 4,563 | | 4,292 | | 4,249 | |
Home equity | 1,076 | | 790 | | 950 | | 860 | | 713 | |
Other consumer | 1 | | 1 | | 1 | | — | | 2 | |
Total consumer loans | 4,939 | | 5,286 | | 5,514 | | 5,152 | | 4,964 | |
| | | | | | | | | | |
Total nonaccrual loans and leases | 71,242 | | 60,709 | | 40,672 | | 43,630 | | 51,241 | |
| | | | | | | | | | |
Other real estate owned | 780 | | 780 | | 780 | | 780 | | — | |
Other repossessed assets | 799 | | 1,194 | | 1,037 | | 914 | | 299 | |
Total nonperforming assets | $ | 72,821 | | $ | 62,683 | | $ | 42,489 | | $ | 45,324 | | $ | 51,540 | |
| | | | | | | | | | |
Loans and leases past due greater than 90 days and still accruing | $ | 16,091 | | $ | 4,994 | | $ | 363 | | $ | 228 | | $ | 1,175 | |
| | | | | | | | | | |
Nonperforming loans and leases as a percentage of total loans and leases | 0.73 | % | 0.62 | % | 0.42 | % | 0.45 | % | 0.55 | % |
Nonperforming assets as a percentage of total assets | 0.62 | % | 0.54 | % | 0.37 | % | 0.40 | % | 0.46 | % |
| | | | | | | | | | |
PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES: | | | | | | | | | | |
Allowance for loan and lease losses at beginning of period | $ | 121,750 | | $ | 120,124 | | $ | 117,522 | | $ | 119,081 | | $ | 125,817 | |
Charge-offs | (4,183 | ) | (8,823 | ) | (5,390 | ) | (7,722 | ) | (10,978 | ) |
Recoveries | 375 | | 436 | | 309 | | 581 | | 4 | |
Net charge-offs | (3,808 | ) | (8,387 | ) | (5,081 | ) | (7,141 | ) | (10,974 | ) |
Provision for loan and lease losses excluding unfunded commitments * | 9,374 | | 10,013 | | 7,683 | | 5,582 | | 4,238 | |
Allowance for loan and lease losses at end of period | $ | 127,316 | | $ | 121,750 | | $ | 120,124 | | $ | 117,522 | | $ | 119,081 | |
| | | | | | | | | | |
Allowance for loan and lease losses as a percentage of total loans and leases | 1.31 | % | 1.25 | % | 1.24 | % | 1.22 | % | 1.27 | % |
| | | | | | | | | | |
NET CHARGE-OFFS: | | | | | | | | | | |
Commercial real estate loans | $ | — | | $ | 3,819 | | $ | 606 | | $ | 1,087 | | $ | (3 | ) |
Commercial loans and leases ** | 3,797 | | 4,571 | | 8,179 | | 6,061 | | 10,958 | |
Consumer loans | 11 | | (3 | ) | (4 | ) | (7 | ) | 19 | |
Total net charge-offs | $ | 3,808 | | $ | 8,387 | | $ | 8,781 | | $ | 7,141 | | $ | 10,974 | |
| | | | | | | | | | |
Net loan and lease charge-offs as a percentage of average loans and leases (annualized) | 0.16 | % | 0.35 | % | 0.36 | % | 0.30 | % | 0.47 | % |
| | | | | | | | | | |
*Provision for loan and lease losses does not include (credit) provision of $(4.5 million), $(4.4 million), $(0.3 million), $(1.7 million), and $(1.3) million for credit losses on unfunded commitments during the three months ended September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023, and September 30, 2023, respectively. |
** The balance at March 31, 2024 includes a $3.7 million charge-off on a letter of credit which impacted the provision. |
BROOKLINE BANCORP, INC. AND SUBSIDIARIES Average Yields / Costs (Unaudited)
|
| Three Months Ended |
| September 30, 2024 | | June 30, 2024 | | September 30, 2023 | |
| Average 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 | $ | 6,516 | 3.05 | % | $ | 846,469 | $ | 6,510 | 3.08 | % | $ | 887,612 | $ | 6,840 | 3.08 | % |
Restricted equity securities (2) | 75,225 | 1,459 | 7.76 | % | 71,696 | 1,375 | 7.67 | % | 67,824 | 1,310 | 7.73 | % |
Short-term investments | 145,838 | 1,986 | 5.44 | % | 143,800 | 1,914 | 5.33 | % | 172,483 | 2,390 | 5.54 | % |
Total investments | 1,074,987 | 9,961 | 3.71 | % | 1,061,965 | 9,799 | 3.69 | % | 1,127,919 | 10,540 | 3.74 | % |
Loans and Leases: | | | | | | | | | | | | |
Commercial real estate loans (3) | 5,772,456 | 83,412 | 5.65 | % | 5,754,901 | 81,565 | 5.61 | % | 5,667,373 | 78,750 | 5.44 | % |
Commercial loans (3) | 1,079,084 | 18,440 | 6.69 | % | 1,069,154 | 17,672 | 6.54 | % | 939,492 | 15,295 | 6.38 | % |
Equipment financing (3) | 1,353,649 | 26,884 | 7.94 | % | 1,374,217 | 26,255 | 7.64 | % | 1,280,033 | 23,331 | 7.29 | % |
Consumer loans (3) | 1,505,095 | 21,123 | 5.60 | % | 1,488,587 | 20,291 | 5.46 | % | 1,471,985 | 19,237 | 5.21 | % |
Total loans and leases | 9,710,284 | 149,859 | 6.17 | % | 9,686,859 | 145,783 | 6.02 | % | 9,358,883 | 136,613 | 5.84 | % |
Total interest-earning assets | 10,785,271 | 159,820 | 5.93 | % | 10,748,824 | 155,582 | 5.79 | % | 10,486,802 | 147,153 | 5.61 | % |
Non-interest-earning assets | 666,067 | | | | 704,570 | | | | 693,833 | | | |
Total assets | $ | 11,451,338 | | | | $ | 11,453,394 | | | | $ | 11,180,635 | | | |
| | | | | | | | | | | | |
Liabilities and Stockholders' Equity: | | | | | | | | | | | | |
Interest-bearing liabilities: | | | | | | | | | | | | |
Deposits: | | | | | | | | | | | | |
NOW accounts | $ | 639,561 | 1,115 | 0.69 | % | $ | 659,351 | 1,111 | 0.68 | % | $ | 681,929 | 1,159 | 0.67 | % |
Savings accounts | 1,738,756 | 12,098 | 2.77 | % | 1,731,388 | 11,874 | 2.76 | % | 1,557,911 | 8,859 | 2.26 | % |
Money market accounts | 2,038,048 | 15,466 | 3.02 | % | 2,026,780 | 15,520 | 3.08 | % | 2,177,528 | 15,785 | 2.88 | % |
Certificates of deposit | 1,768,026 | 20,054 | 4.51 | % | 1,699,510 | 18,717 | 4.43 | % | 1,444,269 | 12,128 | 3.33 | % |
Brokered deposit accounts | 841,067 | 11,063 | 5.23 | % | 958,146 | 12,499 | 5.25 | % | 882,351 | 11,185 | 5.03 | % |
Total interest-bearing deposits | 7,025,458 | 59,796 | 3.39 | % | 7,075,175 | 59,721 | 3.39 | % | 6,743,988 | 49,116 | 2.89 | % |
Borrowings | | | | | | | | | | | | |
Advances from the FHLB | 1,139,049 | 14,366 | 4.94 | % | 1,049,609 | 12,894 | 4.86 | % | 954,989 | 11,706 | 4.80 | % |
Subordinated debentures and notes | 84,276 | 1,378 | 6.54 | % | 84,241 | 1,375 | 6.53 | % | 84,134 | 1,378 | 6.55 | % |
Other borrowed funds | 53,102 | 1,012 | 7.58 | % | 103,753 | 1,364 | 5.29 | % | 117,531 | 790 | 2.67 | % |
Total borrowings | 1,276,427 | 16,756 | 5.14 | % | 1,237,603 | 15,633 | 5.00 | % | 1,156,654 | 13,874 | 4.69 | % |
Total interest-bearing liabilities | 8,301,885 | 76,552 | 3.67 | % | 8,312,778 | 75,354 | 3.65 | % | 7,900,642 | 62,990 | 3.16 | % |
Non-interest-bearing liabilities: | | | | | | | | | | | | |
Demand checking accounts | 1,669,092 | | | | 1,646,869 | | | | 1,794,225 | | | |
Other non-interest-bearing liabilities | 264,324 | | | | 300,362 | | | | 318,041 | | | |
Total liabilities | 10,235,301 | | | | 10,260,009 | | | | 10,012,908 | | | |
Stockholders’ equity | 1,216,037 | | | | 1,193,385 | | | | 1,167,727 | | | |
Total liabilities and equity | $ | 11,451,338 | | | | $ | 11,453,394 | | | | $ | 11,180,635 | | | |
Net interest income (tax-equivalent basis) /Interest-rate spread (4) | | 83,268 | 2.26 | % | | 80,228 | 2.14 | % | | 84,163 | 2.45 | % |
Less adjustment of tax-exempt income | | 260 | | | | 227 | | | | 93 | | |
Net interest income | | $ | 83,008 | | | | $ | 80,001 | | | | $ | 84,070 | | |
Net interest margin (5) | | | 3.07 | % | | | 3.00 | % | | | 3.18 | % |
| | | | | | | | | | | | |
(1) Tax-exempt income on debt securities, equity securities and revenue bonds included in commercial real estate loans is included on a tax-equivalent basis. |
(2) Average balances include unrealized gains (losses) on investment securities. Dividend payments may not be consistent and average yield on equity securities may vary from month to month. |
(3) Loans on nonaccrual status are included in the average balances. |
(4) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities. |
(5) Net interest margin represents net interest income (tax-equivalent basis) divided by average interest-earning assets on an actual/actual basis. |
BROOKLINE BANCORP, INC. AND SUBSIDIARIES Average Yields / Costs (Unaudited)
|
| Nine Months Ended
|
| September 30, 2024 | | September 30, 2023 | |
| Average 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 | $ | 19,953 | 3.08 | % | $ | 971,855 | $ | 22,905 | 3.14 | % |
Restricted equity securities (2) | 74,422 | 4,327 | 7.75 | % | 74,000 | 4,238 | 7.64 | % |
Short-term investments | 140,156 | 5,724 | 5.44 | % | 183,295 | 7,236 | 5.26 | % |
Total investments | 1,079,079 | 30,004 | 3.71 | % | 1,229,150 | 34,379 | 3.73 | % |
Loans and Leases: | | | | | | | | |
Commercial real estate loans (3) | 5,763,065 | 246,026 | 5.61 | % | 5,629,600 | 225,999 | 5.29 | % |
Commercial loans (3) | 1,058,312 | 53,619 | 6.66 | % | 915,420 | 42,814 | 6.17 | % |
Equipment financing (3) | 1,367,380 | 80,034 | 7.80 | % | 1,253,512 | 66,901 | 7.12 | % |
Consumer loans (3) | 1,492,213 | 61,392 | 5.49 | % | 1,469,025 | 55,210 | 5.01 | % |
Total loans and leases | 9,680,970 | 441,071 | 6.07 | % | 9,267,557 | 390,924 | 5.62 | % |
Total interest-earning assets | 10,760,049 | 471,075 | 5.84 | % | 10,496,707 | 425,303 | 5.40 | % |
Non-interest-earning assets | 678,235 | | | | 698,273 | | | |
Total assets | $ | 11,438,284 | | | | $ | 11,194,980 | | | |
| | | | | | | | |
Liabilities and Stockholders' Equity: | | | | | | | | |
Interest-bearing liabilities: | | | | | | | | |
Deposits: | | | | | | | | |
NOW accounts | $ | 656,879 | 3,487 | 0.71 | % | $ | 741,951 | 3,129 | 0.56 | % |
Savings accounts | 1,721,518 | 35,324 | 2.74 | % | 1,365,541 | 17,290 | 1.69 | % |
Money market accounts | 2,047,011 | 46,940 | 3.06 | % | 2,227,404 | 41,914 | 2.52 | % |
Certificates of deposit | 1,697,477 | 55,443 | 4.36 | % | 1,394,338 | 29,605 | 2.84 | % |
Brokered deposit accounts | 898,455 | 35,207 | 5.23 | % | 798,800 | 29,693 | 4.97 | % |
Total interest-bearing deposits | 7,021,340 | 176,401 | 3.36 | % | 6,528,034 | 121,631 | 2.49 | % |
Borrowings | | | | | | | | |
Advances from the FHLB | 1,117,809 | 41,893 | 4.92 | % | 1,135,845 | 40,524 | 4.70 | % |
Subordinated debentures and notes | 84,241 | 4,130 | 6.54 | % | 84,098 | 4,095 | 6.49 | % |
Other borrowed funds | 83,195 | 3,353 | 5.38 | % | 120,825 | 2,562 | 2.83 | % |
Total borrowings | 1,285,245 | 49,376 | 5.05 | % | 1,340,768 | 47,181 | 4.64 | % |
Total interest-bearing liabilities | 8,306,585 | 225,777 | 3.63 | % | 7,868,802 | 168,812 | 2.87 | % |
Non-interest-bearing liabilities: | | | | | | | | |
Demand checking accounts | 1,646,932 | | | | 1,857,429 | | | |
Other non-interest-bearing liabilities | 280,947 | | | | 301,543 | | | |
Total liabilities | 10,234,464 | | | | 10,027,774 | | | |
Stockholders’ equity | 1,203,820 | | | | 1,167,206 | | | |
Total liabilities and equity | $ | 11,438,284 | | | | $ | 11,194,980 | | | |
Net interest income (tax-equivalent basis) /Interest-rate spread (4) | | 245,298 | 2.21 | % | | 256,491 | 2.53 | % |
Less adjustment of tax-exempt income | | 701 | | | | 335 | | |
Net interest income | | $ | 244,597 | | | | $ | 256,156 | | |
Net interest margin (5) | | | 3.05 | % | | | 3.27 | % |
| | | | | | | | |
(1) Tax-exempt income on debt securities, equity securities and revenue bonds included in commercial real estate loans is included on a tax-equivalent basis. |
(2) Average balances include unrealized gains (losses) on investment securities. Dividend payments may not be consistent and average yield on equity securities may vary from month to month. |
(3) Loans on nonaccrual status are included in the average balances. |
(4) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities. |
(5) Net interest margin represents net interest income (tax-equivalent basis) divided by average interest-earning assets on an actual/actual basis. |
BROOKLINE BANCORP, INC. AND SUBSIDIARIES Non-GAAP Financial Information (Unaudited)
|
| | | | | | | At and for the Nine Months Ended September 30,
| |
| | | | | | | 2024 | | 2023 | |
Reconciliation Table - Non-GAAP Financial Information | | | | | | (Dollars in Thousands Except Share Data) | |
| | | | | | | | | |
Reported Pretax Income | | | | | | $ | 67,872 | | $ | 65,351 | |
Less: | | | | | | | | | | |
Security gains | | | | | | — | | 1,704 | |
Add: | | | | | | | | | | |
Day 1 PCSB CECL provision | | | | | | — | | 16,744 | |
Merger and restructuring expense | | | | | | 823 | | 7,411 | |
Operating Pretax Income | | | | | | | $ | 68,695 | | $ | 87,802 | |
Effective tax rate | | | | | | | 24.6 | % | 20.3 | % |
Provision for income taxes | | | | | | | 16,895 | | 17,789 | |
Operating earnings after tax | | | | | | $ | 51,800 | | $ | 70,013 | |
| | | | | | | | | | |
Operating earnings per common share: | | | | | | | | | | |
Basic | | | | | | | $ | 0.58 | | $ | 0.80 | |
Diluted | | | | | | | $ | 0.58 | | $ | 0.79 | |
| | | | | | | | | | |
Weighted average common shares outstanding during the period: | | | | | | | | | |
Basic | | | | | | | 88,944,569 | | 88,016,190 | |
Diluted | | | | | | | 89,241,470 | | 88,253,361 | |
| | | | | | | | | | |
Return on average assets * | | | | | | 0.60 | % | 0.62 | % |
Less: | | | | | | | | | | |
Security gains (after-tax) * | | | | | | — | % | 0.02 | % |
Add: | | | | | | | | | | |
Day 1 PCSB CECL provision (after-tax) * | | | | | | — | % | 0.16 | % |
Merger and restructuring expense (after-tax) * | | | | | | 0.01 | % | 0.07 | % |
Operating return on average assets * | | | | | | 0.61 | % | 0.83 | % |
| | | | | | | | | | |
Return on average tangible assets * | | | | | | 0.61 | % | 0.64 | % |
Less: | | | | | | | | | | |
Security gains (after-tax) * | | | | | | — | % | 0.02 | % |
Add: | | | | | | | | | | |
Day 1 PCSB CECL provision (after-tax) * | | | | | | — | % | 0.16 | % |
Merger and restructuring expense (after-tax) * | | | | | | 0.01 | % | 0.07 | % |
Operating return on average tangible assets * | | | | | | 0.62 | % | 0.85 | % |
| | | | | | | | | | |
| | | | | | | | | | |
Return on average stockholders' equity * | | | | | | 5.67 | % | 5.95 | % |
Less: | | | | | | | | | | |
Security gains (after-tax) * | | | | | | — | % | 0.16 | % |
Add: | | | | | | | | | | |
Day 1 PCSB CECL provision (after-tax) * | | | | | | — | % | 1.53 | % |
Merger and restructuring expense (after-tax) * | | | | | | 0.07 | % | 0.68 | % |
Operating return on average stockholders' equity * | | | | | | 5.74 | % | 8.00 | % |
| | | | | | | | | | |
| | | | | | | | | | |
Return on average tangible stockholders' equity * | | | | | | 7.25 | % | 7.76 | % |
Less: | | | | | | | | | | |
Security gains (after-tax) * | | | | | | — | % | 0.20 | % |
Add: | | | | | | | | | | |
Day 1 PCSB CECL provision (after-tax) * | | | | | | — | % | 1.99 | % |
Merger and restructuring expense (after-tax) * | | | | | | 0.09 | % | 0.88 | % |
Operating return on average tangible stockholders' equity * | | | | | | 7.34 | % | 10.43 | % |
| | | | | | | | | | |
* Ratios at and for the nine months ended are annualized. |
There was no non-operating activity for the three months ended September 30, 2024 and September 30,2023, respectively. |
| |
| At and for the Three Months Ended |
| September 30, 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, net | 261,188 | | 262,859 | | 264,536 | | 266,225 | | 268,199 | |
Average tangible assets | $ | 11,190,150 | | $ | 11,190,535 | | $ | 11,152,649 | | $ | 11,005,716 | | $ | 10,912,436 | |
| | | | | | | | | | |
Return on average tangible assets (annualized) | 0.72 | % | 0.59 | % | 0.53 | % | 0.83 | % | 0.83 | % |
| | | | | | | | | | |
Average total stockholders’ equity | $ | 1,216,037 | | $ | 1,193,385 | | $ | 1,201,904 | | $ | 1,170,776 | | $ | 1,167,727 | |
Less: Average goodwill and average identified intangible assets, net | 261,188 | | 262,859 | | 264,536 | | 266,225 | | 268,199 | |
Average tangible stockholders’ equity | $ | 954,849 | | $ | 930,526 | | $ | 937,368 | | $ | 904,551 | | $ | 899,528 | |
| | | | | | | | | | |
Return on average tangible stockholders’ equity (annualized) | 8.44 | % | 7.04 | % | 6.26 | % | 10.12 | % | 10.09 | % |
| | | | | | | | | | |
Total stockholders’ equity | $ | 1,230,362 | | $ | 1,198,480 | | $ | 1,194,231 | | $ | 1,198,644 | | $ | 1,157,871 | |
Less: | | | | | | | | | | |
Goodwill | 241,222 | | 241,222 | | 241,222 | | 241,222 | | 241,222 | |
Identified intangible assets, net | 19,162 | | 20,830 | | 22,499 | | 24,207 | | 26,172 | |
Tangible stockholders' equity | $ | 969,978 | | $ | 936,428 | | $ | 930,510 | | $ | 933,215 | | $ | 890,477 | |
| | | | | | | | | | |
Total assets | $ | 11,676,721 | | $ | 11,635,292 | | $ | 11,542,731 | | $ | 11,382,256 | | $ | 11,180,555 | |
Less: | | | | | | | | | | |
Goodwill | 241,222 | | 241,222 | | 241,222 | | 241,222 | | 241,222 | |
Identified intangible assets, net | 19,162 | | 20,830 | | 22,499 | | 24,207 | | 26,172 | |
Tangible assets | $ | 11,416,337 | | $ | 11,373,240 | | $ | 11,279,010 | | $ | 11,116,827 | | $ | 10,913,161 | |
| | | | | | | | | | |
Tangible stockholders’ equity to tangible assets | 8.50 | % | 8.23 | % | 8.25 | % | 8.39 | % | 8.16 | % |
| | | | | | | | | | |
Tangible stockholders' equity | $ | 969,978 | | $ | 936,428 | | $ | 930,510 | | $ | 933,215 | | $ | 890,477 | |
| | | | | | | | | | |
Number of common shares issued | 96,998,075 | | 96,998,075 | | 96,998,075 | | 96,998,075 | | 96,998,075 | |
Less: | | | | | | | | | | |
Treasury shares | 7,015,843 | | 7,373,009 | | 7,354,399 | | 7,354,399 | | 7,350,981 | |
Unvested restricted shares | 883,789 | | 713,443 | | 749,099 | | 749,099 | | 780,859 | |
Number of common shares outstanding | 89,098,443 | | 88,911,623 | | 88,894,577 | | 88,894,577 | | 88,866,235 | |
| | | | | | | | | | |
Tangible book value per common share | $ | 10.89 | | $ | 10.53 | | $ | 10.47 | | $ | 10.50 | | $ | 10.02 | |
| | | | | | | | | | | | | | | |
PDF available: http://ml.globenewswire.com/Resource/Download/6045e36a-2e9d-4b3a-b6a1-f895169b0f2d
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
X |
- DefinitionBoolean flag that is true when the XBRL content amends previously-filed or accepted submission.
+ References
+ Details
Name: |
dei_AmendmentFlag |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionFor the EDGAR submission types of Form 8-K: the date of the report, the date of the earliest event reported; for the EDGAR submission types of Form N-1A: the filing date; for all other submission types: the end of the reporting or transition period. The format of the date is YYYY-MM-DD.
+ References
+ Details
Name: |
dei_DocumentPeriodEndDate |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:dateItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe type of document being provided (such as 10-K, 10-Q, 485BPOS, etc). The document type is limited to the same value as the supporting SEC submission type, or the word 'Other'.
+ References
+ Details
Name: |
dei_DocumentType |
Namespace Prefix: |
dei_ |
Data Type: |
dei:submissionTypeItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionAddress Line 1 such as Attn, Building Name, Street Name
+ References
+ Details
Name: |
dei_EntityAddressAddressLine1 |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- Definition
+ References
+ Details
Name: |
dei_EntityAddressCityOrTown |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionCode for the postal or zip code
+ References
+ Details
Name: |
dei_EntityAddressPostalZipCode |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionName of the state or province.
+ References
+ Details
Name: |
dei_EntityAddressStateOrProvince |
Namespace Prefix: |
dei_ |
Data Type: |
dei:stateOrProvinceItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionA unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityCentralIndexKey |
Namespace Prefix: |
dei_ |
Data Type: |
dei:centralIndexKeyItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionIndicate if registrant meets the emerging growth company criteria.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityEmergingGrowthCompany |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionCommission file number. The field allows up to 17 characters. The prefix may contain 1-3 digits, the sequence number may contain 1-8 digits, the optional suffix may contain 1-4 characters, and the fields are separated with a hyphen.
+ References
+ Details
Name: |
dei_EntityFileNumber |
Namespace Prefix: |
dei_ |
Data Type: |
dei:fileNumberItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionTwo-character EDGAR code representing the state or country of incorporation.
+ References
+ Details
Name: |
dei_EntityIncorporationStateCountryCode |
Namespace Prefix: |
dei_ |
Data Type: |
dei:edgarStateCountryItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityRegistrantName |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe Tax Identification Number (TIN), also known as an Employer Identification Number (EIN), is a unique 9-digit value assigned by the IRS.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityTaxIdentificationNumber |
Namespace Prefix: |
dei_ |
Data Type: |
dei:employerIdItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionLocal phone number for entity.
+ References
+ Details
Name: |
dei_LocalPhoneNumber |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 13e -Subsection 4c
+ Details
Name: |
dei_PreCommencementIssuerTenderOffer |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 14d -Subsection 2b
+ Details
Name: |
dei_PreCommencementTenderOffer |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionTitle of a 12(b) registered security.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b
+ Details
Name: |
dei_Security12bTitle |
Namespace Prefix: |
dei_ |
Data Type: |
dei:securityTitleItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionName of the Exchange on which a security is registered.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection d1-1
+ Details
Name: |
dei_SecurityExchangeName |
Namespace Prefix: |
dei_ |
Data Type: |
dei:edgarExchangeCodeItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as soliciting material pursuant to Rule 14a-12 under the Exchange Act.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Section 14a -Number 240 -Subsection 12
+ Details
Name: |
dei_SolicitingMaterial |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionTrading symbol of an instrument as listed on an exchange.
+ References
+ Details
Name: |
dei_TradingSymbol |
Namespace Prefix: |
dei_ |
Data Type: |
dei:tradingSymbolItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as written communications pursuant to Rule 425 under the Securities Act.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Securities Act -Number 230 -Section 425
+ Details
Name: |
dei_WrittenCommunications |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
Brookline Bancorp (NASDAQ:BRKL)
Gráfico Histórico do Ativo
De Nov 2024 até Dez 2024
Brookline Bancorp (NASDAQ:BRKL)
Gráfico Histórico do Ativo
De Dez 2023 até Dez 2024