• Brookline Bancorp Announces Second Quarter Results

    Source: Nasdaq GlobeNewswire / 24 Jul 2024 16:05:01   America/New_York

    Net Income of $16.4 million, EPS of $0.18

    Operating Earnings of $17.0 million, Operating EPS of $0.19

    Quarterly Dividend of $0.135

    BOSTON, July 24, 2024 (GLOBE NEWSWIRE) -- Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced 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, compared to net income and operating earnings after tax (non-GAAP) of $14.7 million, or $0.16 per basic and diluted share, for the first quarter of 2024, and net income of $21.9 million, or $0.25 per basic and diluted share, and operating earnings after tax (non-GAAP) of $23.2 million, or $0.26 per basic and diluted share, for the second quarter of 2023.

    Paul Perrault, Chairman and Chief Executive Officer commented, “I am pleased to report our second quarter earnings. We experienced solid loan and deposit growth across our three banks in the quarter. I would like to recognize our bankers for their diligence in providing extraordinary service to our clients.” Mr. Perrault continued, “While the margin pressure we and the rest of the banking industry experienced in the first quarter persisted in the second quarter, this pressure decreased in intensity slightly from the prior quarter. As we enter the second half of 2024, we remain optimistic about the overall economic outlook in our markets.”

    BALANCE SHEET

    Total assets at June 30, 2024 were $11.6 billion, representing an increase of $92.6 million from $11.5 billion at March 31, 2024, and an increase of $429.2 million from June 30, 2023. At June 30, 2024, total loans and leases were $9.7 billion, representing an increase of $66.1 million from March 31, 2024, and an increase of $380.3 million from June 30, 2023.

    Total investment securities at June 30, 2024 decreased $9.4 million to $856.4 million from $865.8 million at March 31, 2024, and decreased $53.8 million from $910.2 million at June 30, 2023. Total cash and cash equivalents at June 30, 2024 increased $41.2 million to $343.1 million from $301.9 million at March 31, 2024, and increased $118.7 million from $224.4 million at June 30, 2023. As of June 30, 2024, total investment securities and total cash and cash equivalents represented 10.3 percent of total assets, compared to 10.1 percent as of March 31, 2024 and June 30, 2023, respectively.

    Total deposits at June 30, 2024 increased $18.4 million to $8.7 billion from March 31, 2024, consisting of a $65.8 million increase in customer deposits partially offset by a $47.4 million decrease in brokered deposits, and increased $220.0 million from $8.5 billion at June 30, 2023, driven by growth in customer deposits.

    Total borrowed funds at June 30, 2024 increased $67.6 million to $1.4 billion from March 31, 2024, and increased $203.2 million from $1.2 billion at June 30, 2023.

    The ratio of stockholders’ equity to total assets was 10.30 percent at June 30, 2024, compared to 10.35 percent at March 31, 2024, and 10.37 percent at June 30, 2023. The ratio of tangible stockholders’ equity to tangible assets (non-GAAP) was 8.23 percent at June 30, 2024, as compared to 8.25 percent at March 31, 2024, and 8.16 percent at June 30, 2023. Tangible book value per common share (non-GAAP) increased $0.06 from $10.47 at March 31, 2024 to $10.53 at June 30, 2024, and increased $0.46 from $10.07 at June 30, 2023.

    NET INTEREST INCOME

    Net interest income decreased $1.6 million to $80.0 million during the second quarter of 2024 from $81.6 million for the quarter ended March 31, 2024. The net interest margin decreased 6 basis points to 3.00 percent for the three months ended June 30, 2024 from 3.06 percent for the three months ended March 31, 2024, primarily driven by the reversal of interest relating to new nonaccrual loans and higher funding costs.

    NON-INTEREST INCOME

    Total non-interest income for the quarter ended June 30, 2024 increased $0.1 million to $6.4 million from $6.3 million for the quarter ended March 31, 2024.

    PROVISION FOR CREDIT LOSSES

    The Company recorded a provision for credit losses of $5.6 million for the quarter ended June 30, 2024, compared to $7.4 million for the quarter ended March 31, 2024. The decrease in provision was largely driven by the stabilization of credit conditions.

    Total net charge-offs for the second quarter of 2024 were $8.4 million, compared to $8.8 million in the first quarter of 2024. The $8.4 million in net charge-offs were largely driven by $3.9 million in commercial real estate loans and $4.3 million in equipment financing. The majority of net charge-offs were previously reserved for. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis decreased to 35 basis points for the second quarter of 2024 from 36 basis points for the first quarter of 2024.

    The allowance for loan and lease losses represented 1.25 percent of total loans and leases at June 30, 2024, compared to 1.24 percent at March 31, 2024, and 1.35 percent at June 30, 2023.

    ASSET QUALITY

    The ratio of nonperforming loans and leases to total loans and leases was 0.62 percent at June 30, 2024, an increase from 0.42 percent at March 31, 2024. Total nonaccrual loans and leases increased $20.0 million to $60.7 million at June 30, 2024 from $40.7 million at March 31, 2024. The ratio of nonperforming assets to total assets was 0.54 percent at June 30, 2024, an increase from 0.37 percent at March 31, 2024. Total nonperforming assets increased $20.2 million to $62.7 million at June 30, 2024 from $42.5 million at March 31, 2024.

    NON-INTEREST EXPENSE

    Non-interest expense for the quarter ended June 30, 2024 decreased $1.8 million to $59.2 million from $61.0 million for the quarter ended March 31, 2024. The decrease was primarily driven by decreases of $1.9 million in compensation and employee benefits expense and $0.3 million in equipment and data processing expense, partially offset by a $0.8 million non-recurring restructuring charge due to the exit of the specialty vehicle business at Eastern Funding LLC.

    PROVISION FOR INCOME TAXES

    The effective tax rate was 24.4 percent and 24.5 percent for the three and six months ended June 30, 2024 compared to 24.7 percent for the three months ended March 31, 2024 and 21.4 percent and 19.4 percent for the three and six months ended June 30, 2023.

    RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

    The annualized return on average assets increased to 0.57 percent during the second quarter 2024 from 0.51 percent for the first quarter of 2024.

    The annualized return on average stockholders' equity increased to 5.49 percent during the second quarter of 2024 from 4.88 percent for the first quarter of 2024. The annualized return on average tangible stockholders’ equity increased to 7.04 percent for the second quarter of 2024 from 6.26 percent for the first quarter of 2024.

    DIVIDEND DECLARED

    The Company’s Board of Directors approved a dividend of $0.135 per share for the quarter ended June 30, 2024. The dividend will be paid on August 30, 2024 to stockholders of record on August 16, 2024.

    CONFERENCE CALL

    The Company will conduct a conference call/webcast at 1:30 PM Eastern Time on Thursday, July 25, 2024 to discuss the results for the quarter, business highlights and outlook. A copy of the Earnings Presentation is available on the Company’s website, www.brooklinebancorp.com. To listen to the call and view the Company’s Earnings Presentation, please join the call via https://events.q4inc.com/attendee/629150850. 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 611840). 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: 134147.

    ABOUT BROOKLINE BANCORP, INC.

    Brookline Bancorp, Inc., a bank holding company with $11.6 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
     June 30,
    2024    		March 31,
    2024    		December 31,
    2023    		September 30,
    2023    		June 30,
    2023
     (Dollars In Thousands Except per Share Data)
    Earnings Data:     
    Net interest income$80,001 $81,588 $83,555 $84,070 $86,037 
    Provision for credit losses on loans 5,607  7,423  3,851  2,947  5,726 
    Provision (credit) for credit losses on investments (39) (44) (76) 84  133 
    Non-interest income 6,396  6,284  8,027  5,508  5,462 
    Non-interest expense 59,184  61,014  59,244  57,679  57,825 
    Income before provision for income taxes 21,645  19,479  28,563  28,868  27,815 
    Net income 16,372  14,665  22,888  22,701  21,850 
          
    Performance Ratios:     
    Net interest margin (1) 3.00% 3.06% 3.15% 3.18% 3.26%
    Interest-rate spread (1) 2.14% 2.21% 2.39% 2.45% 2.51%
    Return on average assets (annualized) 0.57% 0.51% 0.81% 0.81% 0.78%
    Return on average tangible assets (annualized) (non-GAAP) 0.59% 0.53% 0.83% 0.83% 0.79%
    Return on average stockholders' equity (annualized) 5.49% 4.88% 7.82% 7.78% 7.44%
    Return on average tangible stockholders' equity (annualized) (non-GAAP) 7.04% 6.26% 10.12% 10.09% 9.67%
    Efficiency ratio (2) 68.50% 69.44% 64.69% 64.39% 63.20%
          
    Per Common Share Data:     
    Net income — Basic$0.18 $0.16 $0.26 $0.26 $0.25 
    Net income — Diluted 0.18  0.16  0.26  0.26  0.25 
    Cash dividends declared 0.135  0.135  0.135  0.135  0.135 
    Book value per share (end of period) 13.48  13.43  13.48  13.03  13.11 
    Tangible book value per share (end of period) (non-GAAP) 10.53  10.47  10.50  10.02  10.07 
    Stock price (end of period) 8.35  9.96  10.91  9.11  8.74 
          
    Balance Sheet:     
    Total assets$11,635,292 $11,542,731 $11,382,256 $11,180,555 $11,206,078 
    Total loans and leases 9,721,137  9,655,086  9,641,589  9,380,782  9,340,799 
    Total deposits 8,737,036  8,718,653  8,548,125  8,566,013  8,517,013 
    Total stockholders’ equity 1,198,480  1,194,231  1,198,644  1,157,871  1,162,308 
          
    Asset Quality:     
    Nonperforming assets$62,683 $42,489 $45,324 $51,540 $46,925 
    Nonperforming assets as a percentage of total assets 0.54% 0.37% 0.40% 0.46% 0.42%
    Allowance for loan and lease losses$121,750 $120,124 $117,522 $119,081 $125,817 
    Allowance for loan and lease losses as a percentage of total loans and leases 1.25% 1.24% 1.22% 1.27% 1.35%
    Net loan and lease charge-offs$8,387 $8,781 $7,141 $10,974 $1,097 
    Net loan and lease charge-offs as a percentage of average loans and leases (annualized) 0.35% 0.36% 0.30% 0.47% 0.05%
          
    Capital Ratios:     
    Stockholders’ equity to total assets 10.30% 10.35% 10.53% 10.36% 10.37%
    Tangible stockholders’ equity to tangible assets (non-GAAP) 8.23% 8.25% 8.39% 8.16% 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)
          
     June 30,
    2024    		March 31,
    2024    		December 31,
    2023    		September 30,
    2023    		June 30,
    2023
    ASSETS(In Thousands Except Share Data)
    Cash and due from banks$60,067 $45,708 $34,514 $33,506 $44,323 
    Short-term investments 283,017  256,178  98,513  127,495  180,109 
    Total cash and cash equivalents 343,084  301,886  133,027  161,001  224,432 
    Investment securities available-for-sale 856,439  865,798  916,601  880,412  910,210 
    Total investment securities 856,439  865,798  916,601  880,412  910,210 
    Allowance for investment security losses (359) (398) (441) (517) (433)
    Net investment securities 856,080  865,400  916,160  879,895  909,777 
    Loans and leases held-for-sale —  6,717  —  —  — 
    Loans and leases:     
    Commercial real estate loans 5,782,111  5,755,239  5,764,529  5,669,768  5,670,771 
    Commercial loans and leases 2,443,530  2,416,904  2,399,668  2,241,375  2,193,027 
    Consumer loans 1,495,496  1,482,943  1,477,392  1,469,639  1,477,001 
    Total loans and leases 9,721,137  9,655,086  9,641,589  9,380,782  9,340,799 
    Allowance for loan and lease losses (121,750) (120,124) (117,522) (119,081) (125,817)
    Net loans and leases 9,599,387  9,534,962  9,524,067  9,261,701  9,214,982 
    Restricted equity securities 78,963  74,709  77,595  65,460  71,421 
    Premises and equipment, net of accumulated depreciation 88,378  89,707  89,853  90,476  90,685 
    Right-of-use asset operating leases 35,691  33,133  30,863  31,619  31,774 
    Deferred tax asset 60,032  60,484  56,952  74,491  77,704 
    Goodwill 241,222  241,222  241,222  241,222  241,222 
    Identified intangible assets, net of accumulated amortization 20,830  22,499  24,207  26,172  28,126 
    Other real estate owned and repossessed assets 1,974  1,817  1,694  299  602 
    Other assets 309,651  310,195  286,616  348,219  315,353 
    Total assets$11,635,292 $11,542,731 $11,382,256 $11,180,555 $11,206,078 
    LIABILITIES AND STOCKHOLDERS' EQUITY     
    Deposits:     
    Demand checking accounts$1,638,378 $1,629,371 $1,678,406 $1,745,137 $1,843,516 
    NOW accounts 647,370  654,748  661,863  647,476  699,119 
    Savings accounts 1,735,857  1,727,893  1,669,018  1,625,804  1,464,054 
    Money market accounts 2,073,557  2,065,569  2,082,810  2,161,359  2,166,570 
    Certificate of deposit accounts 1,718,414  1,670,147  1,574,855  1,491,844  1,410,905 
    Brokered deposit accounts 923,460  970,925  881,173  894,393  932,849 
    Total deposits 8,737,036  8,718,653  8,548,125  8,566,013  8,517,013 
    Borrowed funds:     
    Advances from the FHLB 1,265,079  1,150,153  1,223,226  899,304  1,043,381 
    Subordinated debentures and notes 84,258  84,223  84,188  84,152  84,116 
    Other borrowed funds 80,125  127,505  69,256  151,612  98,773 
    Total borrowed funds 1,429,462  1,361,881  1,376,670  1,135,068  1,226,270 
    Operating lease liabilities 37,102  34,235  31,998  32,807  33,021 
    Mortgagors’ escrow accounts 17,117  16,245  17,239  12,578  17,207 
    Reserve for unfunded credits 11,400  15,807  19,767  21,497  22,789 
    Accrued expenses and other liabilities 204,695  201,679  189,813  254,721  227,470 
    Total liabilities 10,436,812  10,348,500  10,183,612  10,022,684  10,043,770 
    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 904,775  903,726  902,659  901,376  905,084 
    Retained earnings 445,560  441,285  438,722  427,937  417,328 
    Accumulated other comprehensive income (61,693) (60,841) (52,798) (81,541) (66,156)
    Treasury stock, at cost;     
    7,373,009, 7,354,399, 7,354,399, 7,350,981 and 7,734,891 shares, respectively (91,132) (90,909) (90,909) (90,871) (94,918)
    Total stockholders' equity 1,198,480  1,194,231  1,198,644  1,157,871  1,162,308 
       Total liabilities and stockholders' equity$11,635,292 $11,542,731 $11,382,256 $11,180,555 $11,206,078 
          


    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Consolidated Statements of Income (Unaudited)
     Three Months Ended
     June 30,
    2024    		March 31,
    2024    		December 31,
    2023    		September 30,
    2023    		June 30,
    2023
     (In Thousands Except Share Data)
    Interest and dividend income:     
    Loans and leases$145,585 $145,265 $142,948 $136,561 $132,299 
    Debt securities 6,480  6,878  6,945  6,799  8,034 
    Restricted equity securities 1,376  1,492  1,333  1,310  1,673 
    Short-term investments 1,914  1,824  1,093  2,390  3,351 
    Total interest and dividend income 155,355  155,459  152,319  147,060  145,357 
    Interest expense:     
    Deposits 59,721  56,884  54,034  49,116  43,147 
    Borrowed funds 15,633  16,987  14,730  13,874  16,173 
    Total interest expense 75,354  73,871  68,764  62,990  59,320 
    Net interest income 80,001  81,588  83,555  84,070  86,037 
    Provision for credit losses on loans 5,607  7,423  3,851  2,947  5,726 
    Provision (credit) for credit losses on investments (39) (44) (76) 84  133 
    Net interest income after provision for credit losses 74,433  74,209  79,780  81,039  80,178 
    Non-interest income:     
    Deposit fees 3,001  2,897  3,064  3,024  2,866 
    Loan fees 702  789  515  639  491 
    Loan level derivative income, net 106  437  778  376  363 
    Gain on investment securities, net —  —  —  —  3 
    Gain on sales of loans and leases held-for-sale 130  —  410  225  308 
    Other 2,457  2,161  3,260  1,244  1,431 
    Total non-interest income 6,396  6,284  8,027  5,508  5,462 
    Non-interest expense:     
    Compensation and employee benefits 34,762  36,629  35,401  33,491  33,438 
    Occupancy 5,551  5,769  5,127  4,983  4,870 
    Equipment and data processing 6,732  7,031  7,245  6,766  6,531 
    Professional services 1,745  1,900  1,442  2,368  1,986 
    FDIC insurance 2,025  1,884  1,839  2,152  2,609 
    Advertising and marketing 1,504  1,574  758  1,174  1,382 
    Amortization of identified intangible assets 1,669  1,708  1,965  1,955  1,954 
    Merger and restructuring expense 823  —  —  —  1,002 
    Other 4,373  4,519  5,467  4,790  4,053 
    Total non-interest expense 59,184  61,014  59,244  57,679  57,825 
    Income before provision for income taxes 21,645  19,479  28,563  28,868  27,815 
    Provision for income taxes 5,273  4,814  5,675  6,167  5,965 
    Net income$16,372 $14,665 $22,888 $22,701 $21,850 
    Earnings per common share:     
    Basic$0.18 $0.16 $0.26 $0.26 $0.25 
    Diluted$0.18 $0.16 $0.26 $0.26 $0.25 
    Weighted average common shares outstanding during the period:    
    Basic 88,904,692  88,894,577  88,867,159  88,795,270  88,665,135 
    Diluted 89,222,315  89,181,508  89,035,505  88,971,210  88,926,543 
    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)
      
     Six Months Ended June 30,
      2024  2023 
     (In Thousands Except Share Data)
    Interest and dividend income:  
    Loans and leases$290,850 $254,230 
    Debt securities 13,358  15,904 
    Restricted equity securities 2,868  2,928 
    Short-term investments 3,738  4,846 
    Total interest and dividend income 310,814  277,908 
    Interest expense:  
    Deposits 116,605  72,515 
    Borrowed funds 32,620  33,307 
    Total interest expense 149,225  105,822 
    Net interest income 161,589  172,086 
    Provision for credit losses on loans 13,030  31,070 
    Provision (credit) for credit losses on investments (83) 331 
    Net interest income after provision for credit losses 148,642  140,685 
    Non-interest income:  
    Deposit Fees 5,898  5,523 
    Loan Fees 1,491  882 
    Loan level derivative income, net 543  2,736 
    Gain on investment securities, net —  1,704 
    Gain on sales of loans and leases held-for-sale 130  1,946 
    Other 4,618  5,608 
    Total non-interest income 12,680  18,399 
    Non-interest expense:  
    Compensation and employee benefits 71,391  70,003 
    Occupancy 11,320  10,093 
    Equipment and data processing 13,763  12,993 
    Professional services 3,645  3,416 
    FDIC insurance 3,909  3,853 
    Advertising and marketing 3,078  2,792 
    Amortization of identified intangible assets 3,377  3,920 
    Merger and restructuring expense 823  7,411 
    Other 8,892  8,120 
    Total non-interest expense 120,198  122,601 
    Income before provision for income taxes 41,124  36,483 
    Provision for income taxes 10,087  7,073 
    Net income$31,037 $29,410 
    Earnings per common share:  
    Basic$0.35 $0.34 
    Diluted$0.35 $0.34 
    Weighted average common shares outstanding during the period: 
    Basic 88,899,635  87,620,194 
    Diluted 89,201,912  87,887,980 
    Dividends paid per common share$0.270 $0.270 
       


    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Asset Quality Analysis (Unaudited)
     At and for the Three Months Ended
     June 30,
    2024    		March 31,
    2024    		December 31,
    2023    		September 30,
    2023    		June 30,
    2023
     (Dollars in Thousands)
    NONPERFORMING ASSETS:     
    Loans and leases accounted for on a nonaccrual basis:     
    Commercial real estate mortgage$11,659 $18,394 $19,608 $23,263 $8,737 
    Multi-family mortgage —  —  —  1,318  — 
    Construction —  —  —  2,316  3,828 
    Total commercial real estate loans 11,659  18,394  19,608  26,897  12,565 
          
    Commercial 16,636  3,096  3,886  5,406  16,023 
    Equipment financing 27,128  13,668  14,984  13,974  12,809 
    Condominium association —  —  —  —  — 
    Total commercial loans and leases 43,764  16,764  18,870  19,380  28,832 
          
    Residential mortgage 4,495  4,563  4,292  4,249  4,343 
    Home equity 790  950  860  713  583 
    Other consumer 1  1  —  2  — 
    Total consumer loans 5,286  5,514  5,152  4,964  4,926 
          
    Total nonaccrual loans and leases 60,709  40,672  43,630  51,241  46,323 
          
    Other real estate owned 780  780  780  —  — 
    Other repossessed assets 1,194  1,037  914  299  602 
    Total nonperforming assets$62,683 $42,489 $45,324 $51,540 $46,925 
          
    Loans and leases past due greater than 90 days and still accruing$4,994 $363 $228 $1,175 $490 
          
    Nonperforming loans and leases as a percentage of total loans and leases 0.62% 0.42% 0.45% 0.55% 0.50%
    Nonperforming assets as a percentage of total assets 0.54% 0.37% 0.40% 0.46% 0.42%
          
    PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:   
    Allowance for loan and lease losses at beginning of period$120,124 $117,522 $119,081 $125,817 $120,865 
    Charge-offs (8,823) (5,390) (7,722) (10,978) (1,690)
    Recoveries 436  309  581  4  593 
    Net charge-offs (8,387) (5,081) (7,141) (10,974) (1,097)
    Provision for loan and lease losses excluding unfunded commitments * 10,013  7,683  5,582  4,238  6,049 
    Allowance for loan and lease losses at end of period$121,750 $120,124 $117,522 $119,081 $125,817 
          
    Allowance for loan and lease losses as a percentage of total loans and leases 1.25% 1.24% 1.22% 1.27% 1.35%
          
    NET CHARGE-OFFS:     
    Commercial real estate loans$3,819 $606 $1,087 $(3)$(6)
    Commercial loans and leases ** 4,571  8,179  6,061  10,958  1,108 
    Consumer loans (3) (4) (7) 19  (5)
    Total net charge-offs$8,387 $8,781 $7,141 $10,974 $1,097 
          
    Net loan and lease charge-offs as a percentage of average loans and leases (annualized) 0.35% 0.36% 0.30% 0.47% 0.05%
          
    *Provision for loan and lease losses does not include (credit) provision of $(4.4 million), $(0.3 million), $(1.7 million), $(1.3 million), and $(0.3) million for credit losses on unfunded commitments during the three months ended June 30, 2024, March 31, 2024, December 31, 2023, September 30, 2023, and June 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
     June 30, 2024March 31, 2024June 30, 2023
     Average BalanceInterest (1)Average Yield/ CostAverage BalanceInterest (1)Average Yield/ CostAverage BalanceInterest (1)Average Yield/ Cost
     (Dollars in Thousands)
    Assets:         
    Interest-earning assets:         
    Investments:         
    Debt securities (2)$846,469$6,5103.08%$893,228$6,9273.10%$1,000,440$8,0913.23%
    Restricted equity securities (2) 71,696 1,3757.67% 76,335 1,4937.82% 77,364 1,6738.65%
    Short-term investments 143,800 1,9145.33% 130,768 1,8245.58% 229,474 3,3515.84%
    Total investments 1,061,965 9,7993.69% 1,100,331 10,2443.72% 1,307,278 13,1154.01%
    Loans and Leases:         
    Commercial real estate loans (3) 5,754,901 81,5655.61% 5,761,735 81,0495.56% 5,640,491 79,5825.58%
    Commercial loans (3) 1,069,154 17,6726.54% 1,026,467 17,5076.75% 913,732 13,5025.85%
    Equipment financing (3) 1,374,217 26,2557.64% 1,374,426 26,8957.83% 1,253,199 22,3577.14%
    Consumer loans (3) 1,488,587 20,2915.46% 1,482,819 19,9785.40% 1,482,799 16,9034.56%
    Total loans and leases 9,686,859 145,7836.02% 9,645,447 145,4296.03% 9,290,221 132,3445.70%
    Total interest-earning assets 10,748,824 155,5825.79% 10,745,778 155,6735.79% 10,597,499 145,4595.49%
    Non-interest-earning assets 704,570   671,407   675,173  
    Total assets$11,453,394  $11,417,185  $11,272,672  
              
    Liabilities and Stockholders' Equity:         
    Interest-bearing liabilities:         
    Deposits:         
    NOW accounts$659,351 1,1110.68%$671,914 1,2610.75%$735,001 1,0690.58%
    Savings accounts 1,731,388 11,8742.76% 1,694,220 11,3522.69% 1,374,337 5,9171.73%
    Money market accounts 2,026,780 15,5203.08% 2,076,303 15,9543.09% 2,140,522 13,9892.62%
    Certificates of deposit 1,699,510 18,7174.43% 1,624,118 16,6724.13% 1,390,913 10,0212.89%
    Brokered deposit accounts 958,146 12,4995.25% 896,784 11,6455.22% 975,700 12,1515.00%
    Total interest-bearing deposits 7,075,175 59,7213.39% 6,963,339 56,8843.29% 6,616,473 43,1472.62%
    Borrowings         
    Advances from the FHLB 1,049,609 12,8944.86% 1,164,534 14,6334.97% 1,191,424 14,2874.74%
    Subordinated debentures and notes 84,241 1,3756.53% 84,206 1,3776.54% 84,098 1,3636.49%
    Other borrowed funds 103,753 1,3645.29% 93,060 9774.22% 86,896 5232.41%
    Total borrowings 1,237,603 15,6335.00% 1,341,800 16,9875.01% 1,362,418 16,1734.70%
    Total interest-bearing liabilities 8,312,778 75,3543.65% 8,305,139 73,8713.58% 7,978,891 59,3202.98%
    Non-interest-bearing liabilities:         
    Demand checking accounts 1,646,869   1,631,472   1,849,393  
    Other non-interest-bearing liabilities 300,362   278,670   270,221  
    Total liabilities 10,260,009   10,215,281   10,098,505  
    Stockholders’ equity 1,193,385   1,201,904   1,174,167  
    Total liabilities and equity$11,453,394  $11,417,185  $11,272,672  
    Net interest income (tax-equivalent basis) /Interest-rate spread (4)  80,2282.14%  81,8022.21%  86,1392.51%
    Less adjustment of tax-exempt income  227   214   102 
    Net interest income $80,001  $81,588  $86,037 
    Net interest margin (5)  3.00%  3.06%  3.26%
              
    (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)
     Six Months Ended
     June 30, 2024June 30, 2023
     Average BalanceInterest (1)Average Yield/ CostAverage BalanceInterest (1)Average Yield/ Cost
     (Dollars in Thousands)
    Assets:      
    Interest-earning assets:      
    Investments:      
    Debt securities (2)$869,848$13,4373.09%$1,014,675$16,0653.17%
    Restricted equity securities (2) 74,015 2,8687.75% 77,139 2,9287.59%
    Short-term investments 137,284 3,7385.45% 188,790 4,8465.13%
    Total investments 1,081,147 20,0433.71% 1,280,604 23,8393.72%
    Loans and Leases:      
    Commercial real estate loans (3) 5,758,318 162,6145.59% 5,610,401 147,2495.22%
    Commercial loans (3) 1,047,810 35,1796.64% 903,185 27,5196.06%
    Equipment financing (3) 1,374,322 53,1507.73% 1,240,031 43,5707.03%
    Consumer loans (3) 1,485,702 40,2695.43% 1,467,521 35,9734.91%
    Total loans and leases 9,666,152 291,2126.03% 9,221,138 254,3115.52%
    Total interest-earning assets 10,747,299 311,2555.79% 10,501,742 278,1505.30%
    Non-interest-earning assets 684,343   700,529  
    Total assets$11,431,642  $11,202,271  
           
    Liabilities and Stockholders' Equity:      
    Interest-bearing liabilities:      
    Deposits:      
    NOW accounts$665,632 2,3720.72%$772,459 1,9700.51%
    Savings accounts 1,712,804 23,2262.73% 1,267,762 8,4311.34%
    Money market accounts 2,051,542 31,4743.09% 2,252,755 26,1292.34%
    Certificates of deposit 1,661,814 35,3894.28% 1,368,959 17,4772.57%
    Brokered deposit accounts 927,465 24,1445.23% 756,332 18,5084.93%
    Total interest-bearing deposits 7,019,257 116,6053.34% 6,418,267 72,5152.28%
    Borrowings      
    Advances from the FHLB 1,107,071 27,5274.92% 1,227,772 28,8184.67%
    Subordinated debentures and notes 84,223 2,7526.54% 84,080 2,7176.46%
    Other borrowed funds 98,406 2,3414.78% 122,500 1,7722.92%
    Total borrowings 1,289,700 32,6205.00% 1,434,352 33,3074.62%
    Total interest-bearing liabilities 8,308,957 149,2253.61% 7,852,619 105,8222.72%
    Non-interest-bearing liabilities:      
    Demand checking accounts 1,635,690   1,889,554  
    Other non-interest-bearing liabilities 289,351   293,157  
    Total liabilities 10,233,998   10,035,330  
    Stockholders’ equity 1,197,644   1,166,941  
    Total liabilities and equity$11,431,642  $11,202,271  
    Net interest income (tax-equivalent basis) /Interest-rate spread (4)  162,0302.18%  172,3282.58%
    Less adjustment of tax-exempt income  441   242 
    Net interest income $161,589  $172,086 
    Net interest margin (5)  3.03%  3.31%
           
    (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 Ended June 30,At and for the Six Months Ended June 30,
      2024202320242023
    Reconciliation Table - Non-GAAP Financial Information(Dollars in Thousands Except Share Data)(Dollars in Thousands Except Share Data)
         
    Reported Pretax Income$21,645 $27,815 $41,124 $36,483 
    Less:     
    Security gains —  3  —  1,704 
    Add:     
    Day 1 PCSB CECL provision —  —  —  16,744 
    Merger and restructuring expense 823  1,002  823  7,411 
    Operating Pretax Income $22,468 $28,814 $41,947 $58,934 
    Effective tax rate  24.4% 19.4% 24.5% 19.4%
    Provision for income taxes  5,473  5,587  10,289  11,427 
    Operating earnings after tax$16,995 $23,227 $31,658 $47,507 
          
    Operating earnings per common share:     
    Basic $0.19 $0.26 $0.36 $0.54 
    Diluted $0.19 $0.26 $0.35 $0.54 
          
    Weighted average common shares outstanding during the period:    
    Basic  88,904,692  88,665,135  88,899,635  87,620,194 
    Diluted  89,222,315  88,926,543  89,201,912  87,887,980 
          
    Return on average assets * 0.57% 0.78% 0.54% 0.53%
    Less:     
    Security gains (after-tax) * —% —% —% 0.02%
    Add:     
    Day 1 PCSB CECL provision (after-tax) * —% —% —% 0.24%
    Merger and restructuring expense (after-tax) * 0.02% 0.03% 0.01% 0.11%
    Operating return on average assets * 0.59% 0.81% 0.55% 0.86%
          
    Return on average tangible assets * 0.59% 0.79% 0.56% 0.54%
    Less:     
    Security gains (after-tax) * —% —% —% 0.03%
    Add:     
    Day 1 PCSB CECL provision (after-tax) * —% —% —% 0.25%
    Merger and restructuring expense (after-tax) * 0.02% 0.03% 0.01% 0.11%
    Operating return on average tangible assets * 0.61% 0.82% 0.57% 0.87%
          
          
    Return on average stockholders' equity * 5.49% 7.44% 5.18% 5.04%
    Less:     
    Security gains (after-tax) * —% —% —% 0.24%
    Add:     
    Day 1 PCSB CECL provision (after-tax) * —% —% —% 2.31%
    Merger and restructuring expense (after-tax) * 0.21% 0.28% 0.10% 1.02%
    Operating return on average stockholders' equity * 5.70% 7.72% 5.28% 8.13%
          
          
    Return on average tangible stockholders' equity * 7.04% 9.67% 6.65% 6.59%
    Less:     
    Security gains (after-tax) * —% —% —% 0.31%
    Add:     
    Day 1 PCSB CECL provision (after-tax) * —% —% —% 3.02%
    Merger and restructuring expense (after-tax) * 0.27% 0.36% 0.13% 1.34%
    Operating return on average tangible stockholders' equity * 7.31% 10.03% 6.78% 10.64%
          
    * Ratios at and for the three months and six months ended are annualized.    
          
     At and for the Three Months Ended
     June 30,
    2024    		March 31,
    2024    		December 31,
    2023    		September 30,
    2023    		June 30,
    2023
     (Dollars in Thousands)
          
    Net income, as reported$16,372 $14,665 $22,888 $22,701 $21,850 
          
    Average total assets$11,453,394 $11,417,185 $11,271,941 $11,180,635 $11,272,672 
    Less: Average goodwill and average identified intangible assets, net 262,859  264,536  266,225  268,199  270,147 
    Average tangible assets$11,190,535 $11,152,649 $11,005,716 $10,912,436 $11,002,525 
          
    Return on average tangible assets (annualized) 0.59 % 0.53 % 0.83 % 0.83 % 0.79 %
          
    Average total stockholders’ equity$1,193,385 $1,201,904 $1,170,776 $1,167,727 $1,174,167 
    Less: Average goodwill and average identified intangible assets, net 262,859  264,536  266,225  268,199  270,147 
    Average tangible stockholders’ equity$930,526 $937,368 $904,551 $899,528 $904,020 
          
    Return on average tangible stockholders’ equity (annualized) 7.04 % 6.26 % 10.12 % 10.09 % 9.67 %
          
    Total stockholders’ equity$1,198,480 $1,194,231 $1,198,644 $1,157,871 $1,162,308 
    Less:     
    Goodwill 241,222  241,222  241,222  241,222  241,222 
    Identified intangible assets, net 20,830  22,499  24,207  26,172  28,126 
    Tangible stockholders' equity$936,428 $930,510 $933,215 $890,477 $892,960 
          
    Total assets$11,635,292 $11,542,731 $11,382,256 $11,180,555 $11,206,078 
    Less:     
    Goodwill 241,222  241,222  241,222  241,222  241,222 
    Identified intangible assets, net 20,830  22,499  24,207  26,172  28,126 
    Tangible assets$11,373,240 $11,279,010 $11,116,827 $10,913,161 $10,936,730 
          
    Tangible stockholders’ equity to tangible assets 8.23 % 8.25 % 8.39 % 8.16 % 8.16 %
          
    Tangible stockholders' equity$936,428 $930,510 $933,215 $890,477 $892,960 
          
    Number of common shares issued 96,998,075  96,998,075  96,998,075  96,998,075  96,998,075 
    Less:     
    Treasury shares 7,373,009  7,354,399  7,354,399  7,350,981  7,734,891 
    Unvested restricted shares 713,443  749,099  749,099  780,859  598,049 
    Number of common shares outstanding 88,911,623  88,894,577  88,894,577  88,866,235  88,665,135 
          
    Tangible book value per common share$ 10.53 $ 10.47 $ 10.50 $ 10.02 $ 10.07 
          

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