Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today
announced net income of $22.7 million, or $0.26 per basic and
diluted share, for the third quarter of 2023, compared to net
income of $21.9 million, or $0.25 per basic and diluted share, for
the second quarter of 2023, and net income of $30.1 million, or
$0.39 per basic and diluted share, for the third quarter of 2022.
Paul Perrault, Chairman and CEO commented on the
quarter, “I am pleased to report on our Company’s performance in
the third quarter. We continue to make progress in all of our
markets. Our colleagues are keeping us well positioned to continue
taking advantage of opportunities as they present themselves.”
BALANCE SHEET
Total assets at September 30, 2023
decreased $25.5 million to $11.18 billion from $11.21 billion at
June 30, 2023, and increased $2.5 billion from $8.7 billion at
September 30, 2022. At September 30, 2023, total loans
and leases were $9.4 billion, representing an increase of $40.0
million from June 30, 2023, and an increase of $2.0 billion
from September 30, 2022, primarily driven by the acquisition
of PCSB Financial Corporation ("PCSB").
Total investment securities at
September 30, 2023 decreased $29.8 million to $880.4 million
from $910.2 million at June 30, 2023, and increased $204.7
million from $675.7 million at September 30, 2022. Total cash
and cash equivalents at September 30, 2023 decreased $63.4
million to $161.0 million from $224.4 million at June 30,
2023, and increased $48.5 million from $112.5 million at
September 30, 2022. As of September 30, 2023, total
investment securities and total cash and cash equivalents
represented 9.3 percent of total assets compared to 10.1 percent
and 9.1 percent as of June 30, 2023 and September 30,
2022, respectively.
Total deposits at September 30, 2023
increased $49.0 million to $8.57 billion from $8.52 billion at
June 30, 2023, consisting of an $87.5 million increase in
customer deposits, partially offset by a $38.5 million decrease in
brokered deposits, and increased $1.8 billion from $6.74 billion at
September 30, 2022, primarily driven by the completion of the
PCSB acquisition.
Total borrowed funds at September 30, 2023
decreased $91.2 million to $1.1 billion from $1.2 billion at
June 30, 2023, and increased $376.3 million from $758.8
million at September 30, 2022.
The ratio of stockholders’ equity to total
assets was 10.36 percent at September 30, 2023, compared to
10.37 percent at June 30, 2023, and 11.08 percent at
September 30, 2022. The ratio of tangible stockholders’ equity
to tangible assets (non-GAAP) was 8.16 percent at both
September 30, 2023 and June 30, 2023, and 9.39 percent at
September 30, 2022. Tangible book value per common share
(non-GAAP) decreased $0.05 from $10.07 at June 30, 2023 to
$10.02 at September 30, 2023, compared to $10.43 at
September 30, 2022.
NET INTEREST INCOME
Net interest income decreased $2.0 million to
$84.1 million during the third quarter of 2023 from $86.0 million
for the quarter ended June 30, 2023. The net interest margin
decreased 8 basis points to 3.18 percent for the three months ended
September 30, 2023 from 3.26 percent for the three months
ended June 30, 2023, primarily driven by higher funding
costs.
NON-INTEREST INCOME
Total non-interest income for the quarter ended
September 30, 2023 was $5.5 million and flat compared to the
quarter ended June 30, 2023.
PROVISION FOR CREDIT LOSSES
The Company recorded a provision for credit
losses of $2.9 million for the quarter ended September 30,
2023, compared to $5.7 million for the quarter ended June 30,
2023.
Total net charge-offs for the third quarter of
2023 were $11.0 million compared to $1.1 million in the second
quarter of 2023. The increase was primarily driven by $10.2 million
in net charge-offs on two commercial loans, the majority of which
was previously reserved for. The ratio of net loan and lease
charge-offs to average loans and leases on an annualized basis
increased to 47 basis points for the third quarter of 2023 from 5
basis points for the second quarter of 2023.
The allowance for loan and lease losses
represented 1.27 percent of total loans and leases at
September 30, 2023, compared to 1.35 percent at June 30,
2023, and 1.27 percent at September 30, 2022, driven by a
decline in individually assessed reserves due to the aforementioned
charge-offs.
ASSET QUALITY
The ratio of nonperforming loans and leases to
total loans and leases was 0.55 percent at September 30, 2023,
an increase from 0.50 percent at June 30, 2023. Total
nonaccrual loans and leases increased $4.9 million to $51.2
million at September 30, 2023 from $46.3 million at
June 30, 2023. The ratio of nonperforming assets to total
assets was 0.46 percent at September 30, 2023, an increase
from 0.42 percent at June 30, 2023. Total nonperforming assets
increased $4.6 million to $51.5 million at September 30,
2023 from $46.9 million at June 30, 2023. The increase in
nonperforming assets was primarily driven by a $14.8 million
commercial real estate relationship becoming non-accrual during the
quarter, partially offset by two commercial relationships of which
$10.2 million was charged off during the quarter.
NON-INTEREST EXPENSE
Non-interest expense for the quarter ended
September 30, 2023 decreased $0.1 million to $57.7
million from $57.8 million for the quarter ended June 30,
2023. The decrease was primarily driven by a decrease of $1.0
million in merger and acquisition expense and a decrease of $0.5
million in FDIC insurance expense, partially offset by an increase
of $0.7 million in other non-interest expense and an increase of
$0.4 million in professional services expense.
PROVISION FOR INCOME TAXES
The effective tax rate was 21.4 percent and 20.3
percent for the three and nine months ended September 30, 2023
compared to 21.4 percent for the three months ended June 30,
2023 and 18.7 percent and 22.9 percent for the three and nine
months ended September 30, 2022.
RETURNS ON AVERAGE ASSETS AND AVERAGE
EQUITY
The annualized return on average assets
increased to 0.81 percent during the third quarter 2023 from 0.78
percent for the second quarter of 2023.
The annualized return on average stockholders'
equity increased to 7.78 percent during the third quarter of 2023
from 7.44 percent for the second quarter of 2023. The annualized
return on average tangible stockholders’ equity increased to 10.09
percent for the third quarter of 2023 from 9.67 percent for the
second quarter of 2023.
DIVIDEND DECLARED
The Company’s Board of Directors approved a
dividend of $0.135 per share for the quarter ended
September 30, 2023. The dividend will be paid on November 24,
2023 to stockholders of record on November 10, 2023.
CONFERENCE CALL
The Company will conduct a conference
call/webcast at 1:30 PM Eastern Time on Thursday, October 26, 2023
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/328004214. 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
454769). 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
204-525-0658 (internationally) and entering the passcode:
509267.
ABOUT BROOKLINE BANCORP, INC.
Brookline Bancorp, Inc., a bank holding company
with $11.2 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, the Company’s ability to achieve the synergies and
value creation contemplated by the acquisition of PCSB; turbulence
in the capital and debt markets; changes in interest rates;
competitive pressures from other financial institutions; general
economic conditions (including inflation and concerns about
liquidity) on a national basis or in the local markets in which the
Company operates; 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 Officer |
| |
(617) 425-5331 |
| |
ccarlson@brkl.com |
|
BROOKLINE BANCORP, INC. AND SUBSIDIARIES |
|
Selected Financial Highlights (Unaudited) |
|
|
|
|
|
At and for the Three Months Ended |
|
|
|
September 30,2023 |
June 30,2023 |
March 31,2023 |
December 31,2022 |
September 30,2022 |
|
|
|
(Dollars In Thousands Except per Share Data) |
|
Earnings Data: |
|
|
|
|
|
|
|
Net interest income |
|
$ |
84,070 |
|
$ |
86,037 |
|
$ |
86,049 |
|
$ |
80,030 |
|
$ |
78,026 |
|
|
Provision (credit) for credit losses |
|
|
2,947 |
|
|
5,726 |
|
|
25,344 |
|
|
5,671 |
|
|
2,845 |
|
|
Provision (credit) for investment losses |
|
|
84 |
|
|
133 |
|
|
198 |
|
|
54 |
|
|
(10 |
) |
|
Non-interest income |
|
|
5,508 |
|
|
5,462 |
|
|
12,937 |
|
|
9,056 |
|
|
6,834 |
|
|
Non-interest expense |
|
|
57,679 |
|
|
57,825 |
|
|
64,776 |
|
|
47,225 |
|
|
44,959 |
|
|
Income before provision for income taxes |
|
|
28,868 |
|
|
27,815 |
|
|
8,668 |
|
|
36,136 |
|
|
37,066 |
|
|
Net income |
|
|
22,701 |
|
|
21,850 |
|
|
7,560 |
|
|
29,695 |
|
|
30,149 |
|
|
|
|
|
|
|
|
|
|
Performance Ratios: |
|
|
|
|
|
|
|
Net interest margin (1) |
|
|
3.18 |
% |
|
3.26 |
% |
|
3.36 |
% |
|
3.81 |
% |
|
3.80 |
% |
|
Interest-rate spread (1) |
|
|
2.45 |
% |
|
2.51 |
% |
|
2.66 |
% |
|
3.35 |
% |
|
3.58 |
% |
|
Return on average assets (annualized) |
|
|
0.81 |
% |
|
0.78 |
% |
|
0.27 |
% |
|
1.34 |
% |
|
1.40 |
% |
|
Return on average tangible assets (annualized) (non-GAAP) |
|
|
0.83 |
% |
|
0.79 |
% |
|
0.28 |
% |
|
1.37 |
% |
|
1.43 |
% |
|
Return on average stockholders' equity (annualized) |
|
|
7.78 |
% |
|
7.44 |
% |
|
2.61 |
% |
|
12.09 |
% |
|
12.29 |
% |
|
Return on average tangible stockholders' equity (annualized)
(non-GAAP) |
|
|
10.09 |
% |
|
9.67 |
% |
|
3.43 |
% |
|
14.48 |
% |
|
14.72 |
% |
|
Efficiency ratio (2) |
|
|
64.39 |
% |
|
63.20 |
% |
|
65.44 |
% |
|
53.01 |
% |
|
52.98 |
% |
|
|
|
|
|
|
|
|
|
Per Common Share Data: |
|
|
|
|
|
|
|
Net income — Basic |
|
$ |
0.26 |
|
$ |
0.25 |
|
$ |
0.09 |
|
$ |
0.39 |
|
$ |
0.39 |
|
|
Net income — Diluted |
|
|
0.26 |
|
|
0.25 |
|
|
0.09 |
|
|
0.39 |
|
|
0.39 |
|
|
Cash dividends declared |
|
|
0.135 |
|
|
0.135 |
|
|
0.135 |
|
|
0.135 |
|
|
0.135 |
|
|
Book value per share (end of period) |
|
|
13.03 |
|
|
13.11 |
|
|
13.14 |
|
|
12.91 |
|
|
12.54 |
|
|
Tangible book value per share (end of period) (non-GAAP) |
|
|
10.02 |
|
|
10.07 |
|
|
10.08 |
|
|
10.80 |
|
|
10.43 |
|
|
Stock price (end of period) |
|
|
9.11 |
|
|
8.74 |
|
|
10.50 |
|
|
14.15 |
|
|
11.65 |
|
| |
|
Balance Sheet: |
|
|
|
|
|
|
|
Total assets |
|
$ |
11,180,555 |
|
$ |
11,206,078 |
|
$ |
11,522,485 |
|
$ |
9,185,836 |
|
$ |
8,695,708 |
|
|
Total loans and leases |
|
|
9,380,782 |
|
|
9,340,799 |
|
|
9,246,965 |
|
|
7,644,388 |
|
|
7,421,304 |
|
|
Total deposits |
|
|
8,566,013 |
|
|
8,517,013 |
|
|
8,456,462 |
|
|
6,522,146 |
|
|
6,735,605 |
|
|
Total stockholders’ equity |
|
|
1,157,871 |
|
|
1,162,308 |
|
|
1,165,066 |
|
|
992,125 |
|
|
963,618 |
|
|
|
|
|
|
|
|
|
|
Asset Quality: |
|
|
|
|
|
|
|
Nonperforming assets |
|
$ |
51,540 |
|
$ |
46,925 |
|
$ |
28,962 |
|
$ |
15,302 |
|
$ |
18,312 |
|
|
Nonperforming assets as a percentage of total assets |
|
|
0.46 |
% |
|
0.42 |
% |
|
0.25 |
% |
|
0.17 |
% |
|
0.21 |
% |
|
Allowance for loan and lease losses |
|
$ |
119,081 |
|
$ |
125,817 |
|
$ |
120,865 |
|
$ |
98,482 |
|
$ |
94,169 |
|
|
Allowance for loan and lease losses as a percentage of total loans
and leases |
|
|
1.27 |
% |
|
1.35 |
% |
|
1.31 |
% |
|
1.29 |
% |
|
1.27 |
% |
|
Net loan and lease charge-offs (recoveries) |
|
$ |
10,974 |
|
$ |
1,097 |
|
$ |
451 |
|
$ |
310 |
|
$ |
(179 |
) |
|
Net loan and lease charge-offs as a percentage of average loans and
leases (annualized) |
|
|
0.47 |
% |
|
0.05 |
% |
|
0.02 |
% |
|
0.02 |
% |
|
(0.01 |
)% |
|
|
|
|
|
|
|
|
|
Capital Ratios: |
|
|
|
|
|
|
|
Stockholders’ equity to total assets |
|
|
10.36 |
% |
|
10.37 |
% |
|
10.11 |
% |
|
10.80 |
% |
|
11.08 |
% |
|
Tangible stockholders’ equity to tangible assets (non-GAAP) |
|
|
8.16 |
% |
|
8.16 |
% |
|
7.94 |
% |
|
9.20 |
% |
|
9.39 |
% |
|
|
|
|
|
|
|
|
|
(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 30,2023 |
June 30,2023 |
March 31,2023 |
December 31,2022 |
September 30,2022 |
|
ASSETS |
|
(In Thousands Except Share Data) |
|
Cash and due from banks |
|
$ |
33,506 |
|
$ |
44,323 |
|
$ |
30,782 |
|
$ |
191,767 |
|
$ |
65,638 |
|
|
Short-term investments |
|
|
127,495 |
|
|
180,109 |
|
|
455,538 |
|
|
191,192 |
|
|
46,873 |
|
|
Total cash and cash equivalents |
|
|
161,001 |
|
|
224,432 |
|
|
486,320 |
|
|
382,959 |
|
|
112,511 |
|
|
Investment securities available-for-sale |
|
|
880,412 |
|
|
910,210 |
|
|
1,067,032 |
|
|
656,766 |
|
|
675,692 |
|
|
Total investment securities |
|
|
880,412 |
|
|
910,210 |
|
|
1,067,032 |
|
|
656,766 |
|
|
675,692 |
|
|
Allowance for investment security losses |
|
|
(517 |
) |
|
(433 |
) |
|
(301 |
) |
|
(102 |
) |
|
(48 |
) |
|
Net investment securities |
|
|
879,895 |
|
|
909,777 |
|
|
1,066,731 |
|
|
656,664 |
|
|
675,644 |
|
|
Loans and leases: |
|
|
|
|
|
|
|
Commercial real estate loans |
|
|
5,669,768 |
|
|
5,670,771 |
|
|
5,610,414 |
|
|
4,404,148 |
|
|
4,269,512 |
|
|
Commercial loans and leases |
|
|
2,241,375 |
|
|
2,193,027 |
|
|
2,147,149 |
|
|
2,016,499 |
|
|
1,933,645 |
|
|
Consumer loans |
|
|
1,469,639 |
|
|
1,477,001 |
|
|
1,489,402 |
|
|
1,223,741 |
|
|
1,218,147 |
|
|
Total loans and leases |
|
|
9,380,782 |
|
|
9,340,799 |
|
|
9,246,965 |
|
|
7,644,388 |
|
|
7,421,304 |
|
|
Allowance for loan and lease losses |
|
|
(119,081 |
) |
|
(125,817 |
) |
|
(120,865 |
) |
|
(98,482 |
) |
|
(94,169 |
) |
|
Net loans and leases |
|
|
9,261,701 |
|
|
9,214,982 |
|
|
9,126,100 |
|
|
7,545,906 |
|
|
7,327,135 |
|
|
Restricted equity securities |
|
|
65,460 |
|
|
71,421 |
|
|
86,230 |
|
|
71,307 |
|
|
44,760 |
|
|
Premises and equipment, net of accumulated depreciation |
|
|
90,476 |
|
|
90,685 |
|
|
87,799 |
|
|
71,391 |
|
|
69,912 |
|
|
Right-of-use asset operating leases |
|
|
31,619 |
|
|
31,774 |
|
|
30,067 |
|
|
19,484 |
|
|
18,614 |
|
|
Deferred tax asset |
|
|
74,491 |
|
|
77,704 |
|
|
75,028 |
|
|
52,237 |
|
|
56,894 |
|
|
Goodwill |
|
|
241,222 |
|
|
241,222 |
|
|
241,222 |
|
|
160,427 |
|
|
160,427 |
|
|
Identified intangible assets, net of accumulated amortization |
|
|
26,172 |
|
|
28,126 |
|
|
30,080 |
|
|
1,781 |
|
|
1,902 |
|
|
Other real estate owned and repossessed assets |
|
|
299 |
|
|
602 |
|
|
508 |
|
|
408 |
|
|
591 |
|
|
Other assets |
|
|
348,219 |
|
|
315,353 |
|
|
292,400 |
|
|
223,272 |
|
|
227,318 |
|
|
Total assets |
|
$ |
11,180,555 |
|
$ |
11,206,078 |
|
$ |
11,522,485 |
|
$ |
9,185,836 |
|
$ |
8,695,708 |
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
Demand checking accounts |
|
$ |
1,745,137 |
|
$ |
1,843,516 |
|
$ |
1,899,370 |
|
$ |
1,802,518 |
|
$ |
1,848,562 |
|
|
NOW accounts |
|
|
647,476 |
|
|
699,119 |
|
|
757,411 |
|
|
544,118 |
|
|
597,870 |
|
|
Savings accounts |
|
|
1,625,804 |
|
|
1,464,054 |
|
|
1,268,375 |
|
|
762,271 |
|
|
824,789 |
|
|
Money market accounts |
|
|
2,161,359 |
|
|
2,166,570 |
|
|
2,185,971 |
|
|
2,174,952 |
|
|
2,405,680 |
|
|
Certificate of deposit accounts |
|
|
1,491,844 |
|
|
1,410,905 |
|
|
1,362,970 |
|
|
928,143 |
|
|
924,771 |
|
|
Brokered deposit accounts |
|
|
894,393 |
|
|
932,849 |
|
|
982,365 |
|
|
310,144 |
|
|
133,933 |
|
|
Total deposits |
|
|
8,566,013 |
|
|
8,517,013 |
|
|
8,456,462 |
|
|
6,522,146 |
|
|
6,735,605 |
|
|
Borrowed funds: |
|
|
|
|
|
|
|
Advances from the FHLBB |
|
|
899,304 |
|
|
1,043,381 |
|
|
1,458,457 |
|
|
1,237,823 |
|
|
557,895 |
|
|
Subordinated debentures and notes |
|
|
84,152 |
|
|
84,116 |
|
|
84,080 |
|
|
84,044 |
|
|
84,008 |
|
|
Other borrowed funds |
|
|
151,612 |
|
|
98,773 |
|
|
87,565 |
|
|
110,785 |
|
|
116,865 |
|
|
Total borrowed funds |
|
|
1,135,068 |
|
|
1,226,270 |
|
|
1,630,102 |
|
|
1,432,652 |
|
|
758,768 |
|
|
Operating lease liabilities |
|
|
32,807 |
|
|
33,021 |
|
|
31,373 |
|
|
19,484 |
|
|
18,614 |
|
|
Mortgagors’ escrow accounts |
|
|
12,578 |
|
|
17,207 |
|
|
17,080 |
|
|
5,607 |
|
|
5,785 |
|
|
Reserve for unfunded credits |
|
|
21,497 |
|
|
22,789 |
|
|
23,112 |
|
|
20,602 |
|
|
19,555 |
|
|
Accrued expenses and other liabilities |
|
|
254,721 |
|
|
227,470 |
|
|
199,290 |
|
|
193,220 |
|
|
193,763 |
|
|
Total liabilities |
|
|
10,022,684 |
|
|
10,043,770 |
|
|
10,357,419 |
|
|
8,193,711 |
|
|
7,732,090 |
|
|
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, 85,177,172 shares issued, and 85,177,172 shares
issued, respectively |
|
|
970 |
|
|
970 |
|
|
970 |
|
|
852 |
|
|
852 |
|
|
Additional paid-in capital |
|
|
901,376 |
|
|
905,084 |
|
|
904,174 |
|
|
736,074 |
|
|
735,119 |
|
|
Retained earnings, partially restricted |
|
|
427,937 |
|
|
417,328 |
|
|
407,528 |
|
|
412,019 |
|
|
392,779 |
|
|
Accumulated other comprehensive income |
|
|
(81,541 |
) |
|
(66,156 |
) |
|
(52,688 |
) |
|
(61,947 |
) |
|
(70,227 |
) |
|
Treasury stock, at cost; |
|
|
|
|
|
|
|
7,350,981, 7,734,891, 7,734,891, 7,731,445, and 7,730,945 shares,
respectively |
|
|
(90,871 |
) |
|
(94,918 |
) |
|
(94,918 |
) |
|
(94,873 |
) |
|
(94,866 |
) |
|
Unallocated common stock held by the Employee Stock Ownership
Plan; |
|
|
|
|
|
|
|
0, 0, 0, 0, and 4,833 shares, respectively |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(39 |
) |
|
Total stockholders' equity |
|
|
1,157,871 |
|
|
1,162,308 |
|
|
1,165,066 |
|
|
992,125 |
|
|
963,618 |
|
|
Total liabilities and stockholders' equity |
|
$ |
11,180,555 |
|
$ |
11,206,078 |
|
$ |
11,522,485 |
|
$ |
9,185,836 |
|
$ |
8,695,708 |
|
|
BROOKLINE BANCORP, INC. AND SUBSIDIARIES |
|
Consolidated Statements of Income (Unaudited) |
| |
|
Three Months Ended |
|
|
|
September 30,2023 |
June 30,2023 |
March 31,2023 |
December 31,2022 |
September 30,2022 |
|
|
|
(In Thousands Except Share Data) |
|
Interest and dividend income: |
|
|
|
|
|
|
|
Loans and leases |
|
$ |
136,561 |
|
$ |
132,299 |
|
$ |
121,931 |
|
$ |
98,386 |
|
$ |
84,375 |
|
|
Debt securities |
|
|
6,799 |
|
|
8,034 |
|
|
7,870 |
|
|
3,497 |
|
|
3,337 |
|
|
Restricted equity securities |
|
|
1,310 |
|
|
1,673 |
|
|
1,255 |
|
|
766 |
|
|
467 |
|
|
Short-term investments |
|
|
2,390 |
|
|
3,351 |
|
|
1,495 |
|
|
754 |
|
|
464 |
|
|
Total interest and dividend income |
|
|
147,060 |
|
|
145,357 |
|
|
132,551 |
|
|
103,403 |
|
|
88,643 |
|
|
Interest expense: |
|
|
|
|
|
|
|
Deposits |
|
|
49,116 |
|
|
43,147 |
|
|
29,368 |
|
|
14,185 |
|
|
7,354 |
|
|
Borrowed funds |
|
|
13,874 |
|
|
16,173 |
|
|
17,134 |
|
|
9,188 |
|
|
3,263 |
|
|
Total interest expense |
|
|
62,990 |
|
|
59,320 |
|
|
46,502 |
|
|
23,373 |
|
|
10,617 |
|
|
Net interest income |
|
|
84,070 |
|
|
86,037 |
|
|
86,049 |
|
|
80,030 |
|
|
78,026 |
|
|
Provision for credit losses |
|
|
2,947 |
|
|
5,726 |
|
|
25,344 |
|
|
5,671 |
|
|
2,845 |
|
|
Provision (credit) for investment losses |
|
|
84 |
|
|
133 |
|
|
198 |
|
|
54 |
|
|
(10 |
) |
|
Net interest income after provision for credit losses |
|
|
81,039 |
|
|
80,178 |
|
|
60,507 |
|
|
74,305 |
|
|
75,191 |
|
|
Non-interest income: |
|
|
|
|
|
|
|
Deposit fees |
|
|
3,024 |
|
|
2,866 |
|
|
2,657 |
|
|
2,916 |
|
|
2,759 |
|
|
Loan fees |
|
|
639 |
|
|
491 |
|
|
391 |
|
|
446 |
|
|
349 |
|
|
Loan level derivative income, net |
|
|
376 |
|
|
363 |
|
|
2,373 |
|
|
670 |
|
|
1,275 |
|
|
Gain on investment securities, net |
|
|
— |
|
|
3 |
|
|
1,701 |
|
|
321 |
|
|
— |
|
|
Gain on sales of loans and leases held-for-sale |
|
|
225 |
|
|
308 |
|
|
1,638 |
|
|
2,612 |
|
|
889 |
|
|
Other |
|
|
1,244 |
|
|
1,431 |
|
|
4,177 |
|
|
2,091 |
|
|
1,562 |
|
|
Total non-interest income |
|
|
5,508 |
|
|
5,462 |
|
|
12,937 |
|
|
9,056 |
|
|
6,834 |
|
|
Non-interest expense: |
|
|
|
|
|
|
|
Compensation and employee benefits |
|
|
33,491 |
|
|
33,438 |
|
|
36,565 |
|
|
29,525 |
|
|
28,306 |
|
|
Occupancy |
|
|
4,983 |
|
|
4,870 |
|
|
5,223 |
|
|
4,005 |
|
|
3,906 |
|
|
Equipment and data processing |
|
|
6,766 |
|
|
6,531 |
|
|
6,462 |
|
|
5,758 |
|
|
5,066 |
|
|
Professional services |
|
|
2,368 |
|
|
1,986 |
|
|
1,430 |
|
|
1,546 |
|
|
1,069 |
|
|
FDIC insurance |
|
|
2,152 |
|
|
2,609 |
|
|
1,244 |
|
|
1,001 |
|
|
709 |
|
|
Advertising and marketing |
|
|
1,174 |
|
|
1,382 |
|
|
1,410 |
|
|
1,052 |
|
|
1,337 |
|
|
Amortization of identified intangible assets |
|
|
1,955 |
|
|
1,954 |
|
|
1,966 |
|
|
120 |
|
|
120 |
|
|
Merger and acquisition expense |
|
|
— |
|
|
1,002 |
|
|
6,409 |
|
|
641 |
|
|
1,073 |
|
|
Other |
|
|
4,790 |
|
|
4,053 |
|
|
4,067 |
|
|
3,577 |
|
|
3,373 |
|
|
Total non-interest expense |
|
|
57,679 |
|
|
57,825 |
|
|
64,776 |
|
|
47,225 |
|
|
44,959 |
|
|
Income before provision for income taxes |
|
|
28,868 |
|
|
27,815 |
|
|
8,668 |
|
|
36,136 |
|
|
37,066 |
|
|
Provision for income taxes |
|
|
6,167 |
|
|
5,965 |
|
|
1,108 |
|
|
6,441 |
|
|
6,917 |
|
|
Net income |
|
$ |
22,701 |
|
$ |
21,850 |
|
$ |
7,560 |
|
$ |
29,695 |
|
$ |
30,149 |
|
|
Earnings per common share: |
|
|
|
|
|
|
|
Basic |
|
$ |
0.26 |
|
$ |
0.25 |
|
$ |
0.09 |
|
$ |
0.39 |
|
$ |
0.39 |
|
|
Diluted |
|
$ |
0.26 |
|
$ |
0.25 |
|
$ |
0.09 |
|
$ |
0.39 |
|
$ |
0.39 |
|
|
Weighted average common shares outstanding during the
period: |
|
|
|
|
|
|
Basic |
|
|
88,795,270 |
|
|
88,665,135 |
|
|
86,563,641 |
|
|
76,841,655 |
|
|
76,779,038 |
|
|
Diluted |
|
|
88,971,210 |
|
|
88,926,543 |
|
|
86,837,806 |
|
|
77,065,076 |
|
|
77,007,971 |
|
|
Dividends paid per common share |
|
$ |
0.135 |
|
$ |
0.135 |
|
$ |
0.135 |
|
$ |
0.135 |
|
$ |
0.130 |
|
|
BROOKLINE BANCORP, INC. AND SUBSIDIARIES |
|
Consolidated Statements of Income (Unaudited) |
| |
| |
|
Nine Months Ended September 30, |
|
|
|
|
2023 |
|
|
2022 |
|
| |
|
(In Thousands Except Share Data) |
|
Interest and dividend income: |
|
|
|
|
Loans and leases |
|
$ |
390,791 |
|
$ |
230,383 |
|
|
Debt securities |
|
|
22,703 |
|
|
9,582 |
|
|
Restricted equity securities |
|
|
4,238 |
|
|
1,132 |
|
|
Short-term investments |
|
|
7,236 |
|
|
686 |
|
|
Total interest and dividend income |
|
|
424,968 |
|
|
241,783 |
|
|
Interest expense: |
|
|
|
|
Deposits |
|
|
121,631 |
|
|
15,407 |
|
|
Borrowed funds |
|
|
47,181 |
|
|
6,635 |
|
|
Total interest expense |
|
|
168,812 |
|
|
22,042 |
|
|
Net interest income |
|
|
256,156 |
|
|
219,741 |
|
|
Provision for credit losses |
|
|
34,017 |
|
|
2,854 |
|
|
Provision for investment losses |
|
|
415 |
|
|
48 |
|
|
Net interest income after provision for credit losses |
|
|
221,724 |
|
|
216,839 |
|
|
Non-interest income: |
|
|
|
|
Deposit Fees |
|
|
8,547 |
|
|
8,003 |
|
|
Loan Fees |
|
|
1,521 |
|
|
1,762 |
|
|
Loan level derivative income, net |
|
|
3,112 |
|
|
3,576 |
|
|
Gain on investment securities, net |
|
|
1,704 |
|
|
— |
|
|
Gain on sales of loans and leases held-for-sale |
|
|
2,171 |
|
|
1,524 |
|
|
Other |
|
|
6,852 |
|
|
4,426 |
|
|
Total non-interest income |
|
|
23,907 |
|
|
19,291 |
|
|
Non-interest expense: |
|
|
|
|
Compensation and employee benefits |
|
|
103,494 |
|
|
83,962 |
|
|
Occupancy |
|
|
15,076 |
|
|
11,997 |
|
|
Equipment and data processing |
|
|
19,759 |
|
|
15,075 |
|
|
Professional services |
|
|
5,784 |
|
|
3,514 |
|
|
FDIC insurance |
|
|
6,005 |
|
|
2,176 |
|
|
Advertising and marketing |
|
|
3,966 |
|
|
3,928 |
|
|
Amortization of identified intangible assets |
|
|
5,875 |
|
|
374 |
|
|
Merger and acquisition expense |
|
|
7,411 |
|
|
1,608 |
|
|
Other |
|
|
12,910 |
|
|
9,683 |
|
|
Total non-interest expense |
|
|
180,280 |
|
|
132,317 |
|
|
Income before provision for income taxes |
|
|
65,351 |
|
|
103,813 |
|
|
Provision for income taxes |
|
|
13,240 |
|
|
23,764 |
|
|
Net income |
|
$ |
52,111 |
|
$ |
80,049 |
|
|
Earnings per common share: |
|
|
|
|
Basic |
|
$ |
0.59 |
|
$ |
1.04 |
|
|
Diluted |
|
$ |
0.59 |
|
$ |
1.04 |
|
|
Weighted average common shares outstanding during the period: |
|
|
Basic |
|
|
88,016,190 |
|
|
77,159,356 |
|
|
Diluted |
|
|
88,253,361 |
|
|
77,448,290 |
|
|
Dividends paid per common share |
|
$ |
0.405 |
|
$ |
0.385 |
|
|
BROOKLINE BANCORP, INC. AND SUBSIDIARIES |
|
Asset Quality Analysis (Unaudited) |
| |
|
At and for the Three Months Ended |
| |
|
September 30,2023 |
June 30,2023 |
March 31,2023 |
December 31,2022 |
September 30,2022 |
| |
|
(Dollars in Thousands) |
|
NONPERFORMING ASSETS: |
|
|
|
|
|
|
|
Loans and leases accounted for on a nonaccrual basis: |
|
|
|
|
|
|
|
Commercial real estate mortgage |
|
$ |
23,263 |
|
$ |
8,737 |
|
$ |
4,589 |
|
$ |
607 |
|
$ |
3,136 |
|
|
Multi-family mortgage |
|
|
1,318 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Construction |
|
|
2,316 |
|
|
3,828 |
|
|
3,883 |
|
|
707 |
|
|
— |
|
|
Total commercial real estate loans |
|
|
26,897 |
|
|
12,565 |
|
|
8,472 |
|
|
1,314 |
|
|
3,136 |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
5,406 |
|
|
16,023 |
|
|
5,495 |
|
|
464 |
|
|
618 |
|
|
Equipment financing |
|
|
13,974 |
|
|
12,809 |
|
|
9,908 |
|
|
9,653 |
|
|
10,544 |
|
|
Condominium association |
|
|
— |
|
|
— |
|
|
51 |
|
|
58 |
|
|
64 |
|
|
Total commercial loans and leases |
|
|
19,380 |
|
|
28,832 |
|
|
15,454 |
|
|
10,175 |
|
|
11,226 |
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
|
|
4,249 |
|
|
4,343 |
|
|
3,449 |
|
|
2,680 |
|
|
2,741 |
|
|
Home equity |
|
|
713 |
|
|
583 |
|
|
1,079 |
|
|
723 |
|
|
616 |
|
|
Other consumer |
|
|
2 |
|
|
— |
|
|
— |
|
|
2 |
|
|
2 |
|
|
Total consumer loans |
|
|
4,964 |
|
|
4,926 |
|
|
4,528 |
|
|
3,405 |
|
|
3,359 |
|
|
|
|
|
|
|
|
|
|
Total nonaccrual loans and leases |
|
|
51,241 |
|
|
46,323 |
|
|
28,454 |
|
|
14,894 |
|
|
17,721 |
|
|
|
|
|
|
|
|
|
|
Other repossessed assets |
|
|
299 |
|
|
602 |
|
|
508 |
|
|
408 |
|
|
591 |
|
|
Total nonperforming assets |
|
$ |
51,540 |
|
$ |
46,925 |
|
$ |
28,962 |
|
$ |
15,302 |
|
$ |
18,312 |
|
|
|
|
|
|
|
|
|
|
Loans and leases past due greater than 90 days and still
accruing |
|
$ |
1,175 |
|
$ |
490 |
|
$ |
726 |
|
$ |
33 |
|
$ |
9,583 |
|
|
|
|
|
|
|
|
|
|
Nonperforming loans and leases as a percentage of total loans and
leases |
|
|
0.55 |
% |
|
0.50 |
% |
|
0.31 |
% |
|
0.19 |
% |
|
0.24 |
% |
|
Nonperforming assets as a percentage of total assets |
|
|
0.46 |
% |
|
0.42 |
% |
|
0.25 |
% |
|
0.17 |
% |
|
0.21 |
% |
|
|
|
|
|
|
|
|
|
PROVISION AND ALLOWANCE FOR LOAN AND LEASE
LOSSES: |
|
|
|
|
|
|
|
|
Allowance for loan and lease losses at beginning of period |
|
$ |
125,817 |
|
$ |
120,865 |
|
$ |
98,482 |
|
$ |
94,169 |
|
$ |
93,188 |
|
|
Charge-offs |
|
|
(10,978 |
) |
|
(1,690 |
) |
|
(845 |
) |
|
(658 |
) |
|
(598 |
) |
|
Recoveries |
|
|
4 |
|
|
593 |
|
|
394 |
|
|
348 |
|
|
777 |
|
|
Net (charge-offs) recoveries |
|
|
(10,974 |
) |
|
(1,097 |
) |
|
(451 |
) |
|
(310 |
) |
|
179 |
|
|
Provision (credit) for loan and lease losses excluding unfunded
commitments * |
|
|
4,238 |
|
|
6,049 |
|
|
22,834 |
|
|
4,623 |
|
|
802 |
|
|
Allowance for loan and lease losses at end of period |
|
$ |
119,081 |
|
$ |
125,817 |
|
$ |
120,865 |
|
$ |
98,482 |
|
$ |
94,169 |
|
|
|
|
|
|
|
|
|
|
Allowance for loan and lease losses as a percentage of total loans
and leases |
|
|
1.27 |
% |
|
1.35 |
% |
|
1.31 |
% |
|
1.29 |
% |
|
1.27 |
% |
|
|
|
|
|
|
|
|
|
NET CHARGE-OFFS (RECOVERIES): |
|
|
|
|
|
|
|
Commercial real estate loans |
|
$ |
(3 |
) |
$ |
(6 |
) |
$ |
(6 |
) |
$ |
(6 |
) |
$ |
(6 |
) |
|
Commercial loans and leases |
|
|
10,958 |
|
|
1,108 |
|
|
457 |
|
|
320 |
|
|
(179 |
) |
|
Consumer loans |
|
|
19 |
|
|
(5 |
) |
|
— |
|
|
(4 |
) |
|
6 |
|
|
Total net charge-offs (recoveries) |
|
$ |
10,974 |
|
$ |
1,097 |
|
$ |
451 |
|
$ |
310 |
|
$ |
(179 |
) |
|
|
|
|
|
|
|
|
|
Net loan and lease charge-offs as a percentage of average loans and
leases (annualized) |
|
|
0.47 |
% |
|
0.05 |
% |
|
0.02 |
% |
|
0.02 |
% |
|
(0.01 |
)% |
|
|
|
|
|
|
|
|
|
*Provision for loan and lease losses does not include (credit)
provision of $(1.3 million), $(0.3) million, $2.5 million, $1.0
million, and $2.0 million for credit losses on unfunded commitments
during the three months ended September 30, 2023, June 30, 2023,
March 31, 2023, December 31, 2022, and September 30, 2022,
respectively. |
|
BROOKLINE BANCORP, INC. AND SUBSIDIARIES |
|
Average Yields / Costs (Unaudited) |
| |
|
Three Months Ended |
|
|
|
September 30, 2023 |
June 30, 2023 |
September 30, 2022 |
|
|
|
AverageBalance |
Interest (1) |
AverageYield/ Cost |
AverageBalance |
Interest (1) |
AverageYield/ Cost |
AverageBalance |
Interest (1) |
AverageYield/ Cost |
|
|
|
(Dollars in Thousands) |
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
Investments: |
|
|
|
|
|
|
|
|
|
|
|
Debt securities (2) |
|
$ |
887,612 |
$ |
6,840 |
3.08 |
% |
$ |
1,000,440 |
$ |
8,091 |
3.23 |
% |
$ |
714,226 |
$ |
3,337 |
1.87 |
% |
|
Marketable and restricted equity securities (2) |
|
|
67,824 |
|
1,310 |
7.73 |
% |
|
77,364 |
|
1,673 |
8.65 |
% |
|
36,525 |
|
467 |
5.12 |
% |
|
Short-term investments |
|
|
172,483 |
|
2,390 |
5.54 |
% |
|
229,474 |
|
3,351 |
5.84 |
% |
|
66,257 |
|
464 |
2.80 |
% |
|
Total investments |
|
|
1,127,919 |
|
10,540 |
3.74 |
% |
|
1,307,278 |
|
13,115 |
4.01 |
% |
|
817,008 |
|
4,268 |
2.09 |
% |
|
Loans and Leases: |
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate loans (3) |
|
|
5,667,373 |
|
78,750 |
5.44 |
% |
|
5,640,491 |
|
79,582 |
5.58 |
% |
|
4,239,155 |
|
44,729 |
4.13 |
% |
|
Commercial loans (3) |
|
|
939,492 |
|
15,295 |
6.38 |
% |
|
913,732 |
|
13,502 |
5.85 |
% |
|
731,095 |
|
8,492 |
4.55 |
% |
|
Equipment financing (3) |
|
|
1,280,033 |
|
23,331 |
7.29 |
% |
|
1,253,199 |
|
22,357 |
7.14 |
% |
|
1,157,829 |
|
19,042 |
6.58 |
% |
|
Consumer loans (3) |
|
|
1,471,985 |
|
19,237 |
5.21 |
% |
|
1,482,799 |
|
16,903 |
4.56 |
% |
|
1,206,968 |
|
12,165 |
4.02 |
% |
|
Total loans and leases |
|
|
9,358,883 |
|
136,613 |
5.84 |
% |
|
9,290,221 |
|
132,344 |
5.70 |
% |
|
7,335,047 |
|
84,428 |
4.60 |
% |
|
Total interest-earning assets |
|
|
10,486,802 |
|
147,153 |
5.61 |
% |
|
10,597,499 |
|
145,459 |
5.49 |
% |
|
8,152,055 |
|
88,696 |
4.35 |
% |
|
Non-interest-earning assets |
|
|
693,833 |
|
|
|
675,173 |
|
|
|
434,365 |
|
|
|
Total assets |
|
$ |
11,180,635 |
|
|
$ |
11,272,672 |
|
|
$ |
8,586,420 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
NOW accounts |
|
$ |
681,929 |
|
1,159 |
0.67 |
% |
$ |
735,001 |
|
1,069 |
0.58 |
% |
$ |
607,210 |
|
579 |
0.38 |
% |
|
Savings accounts |
|
|
1,557,911 |
|
8,859 |
2.26 |
% |
|
1,374,337 |
|
5,917 |
1.73 |
% |
|
881,988 |
|
664 |
0.30 |
% |
|
Money market accounts |
|
|
2,177,528 |
|
15,785 |
2.88 |
% |
|
2,140,522 |
|
13,989 |
2.62 |
% |
|
2,423,920 |
|
4,038 |
0.66 |
% |
|
Certificates of deposit |
|
|
1,444,269 |
|
12,128 |
3.33 |
% |
|
1,390,913 |
|
10,021 |
2.89 |
% |
|
964,112 |
|
1,803 |
0.74 |
% |
|
Brokered deposit accounts |
|
|
882,351 |
|
11,185 |
5.03 |
% |
|
975,700 |
|
12,151 |
5.00 |
% |
|
117,058 |
|
270 |
0.92 |
% |
|
Total interest-bearing deposits |
|
|
6,743,988 |
|
49,116 |
2.89 |
% |
|
6,616,473 |
|
43,147 |
2.62 |
% |
|
4,994,288 |
|
7,354 |
0.58 |
% |
|
Borrowings |
|
|
|
|
|
|
|
|
|
|
|
Advances from the FHLBB |
|
|
954,989 |
|
11,706 |
4.80 |
% |
|
1,191,424 |
|
14,287 |
4.74 |
% |
|
331,840 |
|
1,700 |
2.00 |
% |
|
Subordinated debentures and notes |
|
|
84,134 |
|
1,378 |
6.55 |
% |
|
84,098 |
|
1,363 |
6.49 |
% |
|
83,989 |
|
1,295 |
6.17 |
% |
|
Other borrowed funds |
|
|
117,531 |
|
790 |
2.67 |
% |
|
86,896 |
|
523 |
2.41 |
% |
|
89,019 |
|
268 |
1.20 |
% |
|
Total borrowings |
|
|
1,156,654 |
|
13,874 |
4.69 |
% |
|
1,362,418 |
|
16,173 |
4.70 |
% |
|
504,848 |
|
3,263 |
2.53 |
% |
|
Total interest-bearing liabilities |
|
|
7,900,642 |
|
62,990 |
3.16 |
% |
|
7,978,891 |
|
59,320 |
2.98 |
% |
|
5,499,136 |
|
10,617 |
0.77 |
% |
|
Non-interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Demand checking accounts |
|
|
1,794,225 |
|
|
|
1,849,393 |
|
|
|
1,908,459 |
|
|
|
Other non-interest-bearing liabilities |
|
|
318,041 |
|
|
|
270,221 |
|
|
|
197,446 |
|
|
|
Total liabilities |
|
|
10,012,908 |
|
|
|
10,098,505 |
|
|
|
7,605,041 |
|
|
|
Stockholders’ equity |
|
|
1,167,727 |
|
|
|
1,174,167 |
|
|
|
981,379 |
|
|
|
Total liabilities and equity |
|
$ |
11,180,635 |
|
|
|
|
$ |
11,272,672 |
|
|
|
|
$ |
8,586,420 |
|
|
|
Net interest income (tax-equivalent basis) /Interest-rate spread
(4) |
|
|
|
84,163 |
2.45 |
% |
|
|
86,139 |
2.51 |
% |
|
|
78,079 |
3.58 |
% |
|
Less adjustment of tax-exempt income |
|
|
|
93 |
|
|
|
102 |
|
|
|
53 |
|
|
Net interest income |
|
|
$ |
84,070 |
|
|
$ |
86,037 |
|
|
$ |
78,026 |
|
|
Net interest margin (5) |
|
|
|
3.18 |
% |
|
|
3.26 |
% |
|
|
3.80 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
(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, 2023 |
September 30, 2022 |
|
|
|
AverageBalance |
Interest (1) |
AverageYield/ Cost |
AverageBalance |
Interest (1) |
AverageYield/ Cost |
|
|
|
(Dollars in Thousands) |
|
Assets: |
|
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
Investments: |
|
|
|
|
|
|
|
|
Debt securities (2) |
|
$ |
971,855 |
$ |
22,905 |
3.14 |
% |
$ |
720,266 |
$ |
9,582 |
1.77 |
% |
|
Marketable and restricted equity securities (2) |
|
|
74,000 |
|
4,238 |
7.64 |
% |
|
31,663 |
|
1,132 |
4.77 |
% |
|
Short-term investments |
|
|
183,295 |
|
7,236 |
5.26 |
% |
|
119,083 |
|
686 |
0.77 |
% |
|
Total investments |
|
|
1,229,150 |
|
34,379 |
3.73 |
% |
|
871,012 |
|
11,400 |
1.75 |
% |
|
Loans and Leases: |
|
|
|
|
|
|
|
|
Commercial real estate loans (3) |
|
|
5,629,600 |
|
225,999 |
5.29 |
% |
|
4,204,260 |
|
119,723 |
3.76 |
% |
|
Commercial loans (3) |
|
|
915,420 |
|
42,814 |
6.17 |
% |
|
727,333 |
|
23,564 |
4.28 |
% |
|
Equipment financing (3) |
|
|
1,253,512 |
|
66,901 |
7.12 |
% |
|
1,131,069 |
|
54,951 |
6.48 |
% |
|
Consumer loans (3) |
|
|
1,469,025 |
|
55,210 |
5.01 |
% |
|
1,191,294 |
|
32,304 |
3.62 |
% |
|
Total loans and leases |
|
|
9,267,557 |
|
390,924 |
5.62 |
% |
|
7,253,956 |
|
230,542 |
4.24 |
% |
|
Total interest-earning assets |
|
|
10,496,707 |
|
425,303 |
5.40 |
% |
|
8,124,968 |
|
241,942 |
3.97 |
% |
|
Non-interest-earning assets |
|
|
698,273 |
|
|
|
419,501 |
|
|
|
Total assets |
|
$ |
11,194,980 |
|
|
|
|
$ |
8,544,469 |
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity: |
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
NOW accounts |
|
$ |
741,951 |
|
3,129 |
0.56 |
% |
$ |
603,243 |
|
898 |
0.20 |
% |
|
Savings accounts |
|
|
1,365,541 |
|
17,290 |
1.69 |
% |
|
915,185 |
|
1,073 |
0.16 |
% |
|
Money market accounts |
|
|
2,227,404 |
|
41,914 |
2.52 |
% |
|
2,423,207 |
|
7,681 |
0.42 |
% |
|
Certificates of deposit |
|
|
1,394,338 |
|
29,605 |
2.84 |
% |
|
1,024,303 |
|
5,345 |
0.70 |
% |
|
Brokered deposit accounts |
|
|
798,800 |
|
29,693 |
4.97 |
% |
|
121,724 |
|
410 |
0.45 |
% |
|
Total interest-bearing deposits |
|
|
6,528,034 |
|
121,631 |
2.49 |
% |
|
5,087,662 |
|
15,407 |
0.40 |
% |
|
Borrowings |
|
|
|
|
|
|
|
|
Advances from the FHLBB |
|
|
1,135,845 |
|
40,524 |
4.70 |
% |
|
207,090 |
|
2,376 |
1.51 |
% |
|
Subordinated debentures and notes |
|
|
84,098 |
|
4,095 |
6.49 |
% |
|
83,952 |
|
3,801 |
6.04 |
% |
|
Other borrowed funds |
|
|
120,825 |
|
2,562 |
2.83 |
% |
|
108,337 |
|
458 |
0.57 |
% |
|
Total borrowings |
|
|
1,340,768 |
|
47,181 |
4.64 |
% |
|
399,379 |
|
6,635 |
2.19 |
% |
|
Total interest-bearing liabilities |
|
|
7,868,802 |
|
168,812 |
2.87 |
% |
|
5,487,041 |
|
22,042 |
0.54 |
% |
|
Non-interest-bearing liabilities: |
|
|
|
|
|
|
|
|
Demand checking accounts |
|
|
1,857,429 |
|
|
|
1,891,698 |
|
|
|
Other non-interest-bearing liabilities |
|
|
301,543 |
|
|
|
180,842 |
|
|
|
Total liabilities |
|
|
10,027,774 |
|
|
|
7,559,581 |
|
|
|
Stockholders’ equity |
|
|
1,167,206 |
|
|
|
984,888 |
|
|
|
Total liabilities and equity |
|
$ |
11,194,980 |
|
|
|
|
$ |
8,544,469 |
|
|
|
Net interest income (tax-equivalent basis) /Interest-rate spread
(4) |
|
|
|
256,491 |
2.53 |
% |
|
|
219,900 |
3.43 |
% |
|
Less adjustment of tax-exempt income |
|
|
|
335 |
|
|
|
159 |
|
|
Net interest income |
|
|
$ |
256,156 |
|
|
|
|
$ |
219,741 |
|
|
Net interest margin (5) |
|
|
|
3.27 |
% |
|
|
3.62 |
% |
|
|
|
|
|
|
|
|
|
|
(1) Tax-exempt income on debt securities, equity securities and
revenue bonds included in commercial real estate loans is included
on a tax-equivalent basis. |
|
(2) Average balances include unrealized gains (losses) on
investment securities. Dividend payments may not be consistent and
average yield on equity securities may vary from month to
month. |
|
(3) Loans on nonaccrual status are included in the average
balances. |
|
(4) Interest rate spread represents the difference between the
yield on interest-earning assets and the cost of interest-bearing
liabilities. |
|
(5) Net interest margin represents net interest income
(tax-equivalent basis) divided by average interest-earning assets
on an actual/actual basis. |
|
BROOKLINE BANCORP, INC. AND SUBSIDIARIES |
|
Non-GAAP Financial Information (Unaudited) |
| |
At and for the Three Months EndedSeptember
30, |
At and for the Nine Months EndedSeptember
30, |
| |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
Reconciliation Table - Non-GAAP Financial
Information |
(Dollars in Thousands Except Share Data) |
(Dollars in Thousands Except Share Data) |
| |
|
|
Reported Pretax Income |
$ |
28,868 |
|
$ |
37,066 |
|
$ |
65,351 |
|
$ |
103,813 |
|
|
Less: |
|
|
|
|
|
|
Security gains |
|
— |
|
|
— |
|
|
1,704 |
|
|
— |
|
|
Add: |
|
|
|
|
|
|
Day 1 PCSB CECL provision |
|
— |
|
|
— |
|
|
16,744 |
|
|
— |
|
|
Merger and acquisition expense |
|
— |
|
|
1,073 |
|
|
7,411 |
|
|
1,608 |
|
|
Operating Pretax Income |
|
$ |
28,868 |
|
$ |
38,139 |
|
$ |
87,802 |
|
$ |
105,421 |
|
|
Effective tax rate |
|
|
21.4 |
% |
|
18.7 |
% |
|
20.3 |
% |
|
22.9 |
% |
|
Provision for income taxes |
|
|
6,167 |
|
|
7,118 |
|
|
17,789 |
|
|
24,132 |
|
|
Operating earnings after tax |
$ |
22,701 |
|
$ |
31,021 |
|
$ |
70,013 |
|
$ |
81,289 |
|
|
|
|
|
|
|
|
|
Operating earnings per common share: |
|
|
|
|
|
|
Basic |
|
$ |
0.26 |
|
$ |
0.40 |
|
$ |
0.80 |
|
$ |
1.05 |
|
|
Diluted |
|
$ |
0.26 |
|
$ |
0.40 |
|
$ |
0.79 |
|
$ |
1.05 |
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding during the period: |
|
|
|
|
|
Basic |
|
|
88,795,270 |
|
|
76,779,038 |
|
|
88,016,190 |
|
|
77,159,356 |
|
|
Diluted |
|
|
88,971,210 |
|
|
77,007,971 |
|
|
88,253,361 |
|
|
77,448,290 |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
Return on average assets * |
|
0.81 |
% |
|
1.40 |
% |
|
0.62 |
% |
|
1.25 |
% |
|
Less: |
|
|
|
|
|
|
Security gains (after-tax) * |
|
— |
% |
|
— |
% |
|
0.02 |
% |
|
— |
% |
|
Add: |
|
|
|
|
|
|
Day 1 PCSB CECL provision * |
|
— |
% |
|
— |
% |
|
0.16 |
% |
|
— |
% |
|
Merger and acquisition expense (after-tax) * |
|
— |
% |
|
0.04 |
% |
|
0.07 |
% |
|
0.02 |
% |
|
Operating return on average assets * |
|
0.81 |
% |
|
1.44 |
% |
|
0.83 |
% |
|
1.27 |
% |
| |
|
|
|
|
|
| |
|
|
|
|
|
|
Return on average tangible assets * |
|
0.83 |
% |
|
1.43 |
% |
|
0.64 |
% |
|
1.27 |
% |
|
Less: |
|
|
|
|
|
|
Security gains (after-tax) * |
|
— |
% |
|
— |
% |
|
0.02 |
% |
|
— |
% |
|
Add: |
|
|
|
|
|
|
Day 1 PCSB CECL provision * |
|
— |
% |
|
— |
% |
|
0.16 |
% |
|
— |
% |
|
Merger and acquisition expense (after-tax) * |
|
— |
% |
|
0.04 |
% |
|
0.07 |
% |
|
0.02 |
% |
|
Operating return on average tangible assets * |
|
0.83 |
% |
|
1.47 |
% |
|
0.85 |
% |
|
1.29 |
% |
| |
|
|
|
|
|
| |
|
|
|
|
|
|
Return on average stockholders' equity * |
|
7.78 |
% |
|
12.29 |
% |
|
5.95 |
% |
|
10.84 |
% |
|
Less: |
|
|
|
|
|
|
Security gains (after-tax) * |
|
— |
% |
|
— |
% |
|
0.16 |
% |
|
— |
% |
|
Add: |
|
|
|
|
|
|
Day 1 PCSB CECL provision * |
|
— |
% |
|
— |
% |
|
1.53 |
% |
|
— |
% |
|
Merger and acquisition expense (after-tax) * |
|
— |
% |
|
0.36 |
% |
|
0.68 |
% |
|
0.17 |
% |
|
Operating return on average stockholders' equity
* |
|
7.78 |
% |
|
12.65 |
% |
|
8.00 |
% |
|
11.01 |
% |
| |
|
|
|
|
|
| |
|
|
|
|
|
|
Return on average tangible stockholders' equity * |
|
10.09 |
% |
|
14.72 |
% |
|
7.76 |
% |
|
12.98 |
% |
|
Less: |
|
|
|
|
|
|
Security gains (after-tax) * |
|
— |
% |
|
— |
% |
|
0.20 |
% |
|
— |
% |
|
Add: |
|
|
|
|
|
|
Day 1 PCSB CECL provision * |
|
— |
% |
|
— |
% |
|
1.99 |
% |
|
— |
% |
|
Merger and acquisition expense (after-tax) * |
|
— |
% |
|
0.43 |
% |
|
0.88 |
% |
|
0.20 |
% |
|
Operating return on average tangible stockholders' equity
* |
|
10.09 |
% |
|
15.15 |
% |
|
10.43 |
% |
|
13.18 |
% |
| |
|
|
|
|
|
|
* Ratios at and for the three and nine months ended are
annualized. |
| |
| |
At and for the Three Months Ended |
| |
September 30,2023 |
June 30,2023 |
March 31,2023 |
December 31,2022 |
September 30,2022 |
| |
(Dollars in Thousands) |
| |
|
Net income, as reported |
$ |
22,701 |
|
$ |
21,850 |
|
$ |
7,560 |
|
$ |
29,695 |
|
$ |
30,149 |
|
|
|
|
|
|
|
|
|
Average total assets |
$ |
11,180,635 |
|
$ |
11,272,672 |
|
$ |
11,131,087 |
|
$ |
8,857,631 |
|
$ |
8,586,420 |
|
|
Less: Average goodwill and average identified intangible assets,
net |
|
268,199 |
|
|
270,147 |
|
|
278,135 |
|
|
162,266 |
|
|
162,387 |
|
|
Average tangible assets |
$ |
10,912,436 |
|
$ |
11,002,525 |
|
$ |
10,852,952 |
|
$ |
8,695,365 |
|
$ |
8,424,033 |
|
|
|
|
|
|
|
|
|
Return on average tangible assets
(annualized) |
|
0.83 |
% |
|
0.79 |
% |
|
0.28 |
% |
|
1.37 |
% |
|
1.43 |
% |
|
|
|
|
|
|
|
|
Average total stockholders’ equity |
$ |
1,167,727 |
|
$ |
1,174,167 |
|
$ |
1,159,635 |
|
$ |
982,306 |
|
$ |
981,379 |
|
|
Less: Average goodwill and average identified intangible assets,
net |
|
268,199 |
|
|
270,147 |
|
|
278,135 |
|
|
162,266 |
|
|
162,387 |
|
|
Average tangible stockholders’ equity |
$ |
899,528 |
|
$ |
904,020 |
|
$ |
881,500 |
|
$ |
820,040 |
|
$ |
818,992 |
|
|
|
|
|
|
|
|
|
Return on average tangible stockholders’ equity
(annualized) |
|
10.09 |
% |
|
9.67 |
% |
|
3.43 |
% |
|
14.48 |
% |
|
14.72 |
% |
|
|
|
|
|
|
|
|
Total stockholders’ equity |
$ |
1,157,871 |
|
$ |
1,162,308 |
|
$ |
1,165,066 |
|
$ |
992,125 |
|
$ |
963,618 |
|
|
Less: |
|
|
|
|
|
|
Goodwill |
|
241,222 |
|
|
241,222 |
|
|
241,222 |
|
|
160,427 |
|
|
160,427 |
|
|
Identified intangible assets, net |
|
26,172 |
|
|
28,126 |
|
|
30,080 |
|
|
1,781 |
|
|
1,902 |
|
|
Tangible stockholders' equity |
$ |
890,477 |
|
$ |
892,960 |
|
$ |
893,764 |
|
$ |
829,917 |
|
$ |
801,289 |
|
|
|
|
|
|
|
|
|
Total assets |
$ |
11,180,555 |
|
$ |
11,206,078 |
|
$ |
11,522,485 |
|
$ |
9,185,836 |
|
$ |
8,695,708 |
|
|
Less: |
|
|
|
|
|
|
Goodwill |
|
241,222 |
|
|
241,222 |
|
|
241,222 |
|
|
160,427 |
|
|
160,427 |
|
|
Identified intangible assets, net |
|
26,172 |
|
|
28,126 |
|
|
30,080 |
|
|
1,781 |
|
|
1,902 |
|
|
Tangible assets |
$ |
10,913,161 |
|
$ |
10,936,730 |
|
$ |
11,251,183 |
|
$ |
9,023,628 |
|
$ |
8,533,379 |
|
|
|
|
|
|
|
|
|
Tangible stockholders’ equity to tangible
assets |
|
8.16 |
% |
|
8.16 |
% |
|
7.94 |
% |
|
9.20 |
% |
|
9.39 |
% |
|
|
|
|
|
|
|
|
Tangible stockholders' equity |
$ |
890,477 |
|
$ |
892,960 |
|
$ |
893,764 |
|
$ |
829,917 |
|
$ |
801,289 |
|
|
|
|
|
|
|
|
|
Number of common shares issued |
|
96,998,075 |
|
|
96,998,075 |
|
|
96,998,075 |
|
|
85,177,172 |
|
|
85,177,172 |
|
|
Less: |
|
|
|
|
|
|
Treasury shares |
|
7,350,981 |
|
|
7,734,891 |
|
|
7,734,891 |
|
|
7,731,445 |
|
|
7,730,945 |
|
|
Unallocated ESOP shares |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
4,833 |
|
|
Unvested restricted shares |
|
780,859 |
|
|
598,049 |
|
|
598,049 |
|
|
601,495 |
|
|
601,995 |
|
|
Number of common shares outstanding |
|
88,866,235 |
|
|
88,665,135 |
|
|
88,665,135 |
|
|
76,844,232 |
|
|
76,839,399 |
|
|
|
|
|
|
|
|
|
Tangible book value per common share |
$ |
10.02 |
|
$ |
10.07 |
|
$ |
10.08 |
|
$ |
10.80 |
|
$ |
10.43 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PDF
Available: http://ml.globenewswire.com/Resource/Download/c6ac4fa8-5a96-44a5-8af8-720ca790c975
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