• Brookline Bancorp Announces First Quarter Results Reflecting One-Time Costs Associated with PCSB Financial Corporation Acquisition

    Source: Nasdaq GlobeNewswire / 26 Apr 2023 17:25:01   America/New_York

    Net Income of $7.6 million, EPS of $0.09

    Operating Earnings of $23.3 million, Operating EPS of $0.27

    BOSTON, April 26, 2023 (GLOBE NEWSWIRE) -- Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced net income of $7.6 million, or $0.09 per basic and diluted share, for the first quarter of 2023, compared to net income of $29.7 million, or $0.39 per basic and diluted share, for the fourth quarter of 2022, and net income of $24.7 million, or $0.32 per basic and diluted share, for the first quarter of 2022.

    Financial results for the first quarter of 2023 reflect pre-tax one-time costs of $21.5 million associated with the acquisition of PCSB Financial Corporation ("PCSB") and its subsidiary, PCSB Bank, which closed January 1, 2023. Excluding these one-time costs, operating earnings was $23.3 million, or $0.27 per diluted share, for the first quarter of 2023. These one-time costs consist of merger-related costs of $6.4 million associated with the acquisition and $16.7 million of provision for credit losses expense attributable to the closing of the acquisition, partially offset by $1.7 million in securities gains. Please refer to "Non-GAAP Financial Information" below for a reconciliation of net income to operating earnings.

    "I am very pleased to report we successfully completed the acquisition and conversion of PCSB Financial and PCSB Bank," said Paul Perrault, Brookline Bancorp, Inc. Chairman and Chief Executive Officer. "Our acquisition assures that PCSB Bank will remain well positioned to continue its growth in the New York market. Like all financial institutions, we continue to monitor the recent developments in the banking sector and in our markets, to take advantage of opportunities as they present themselves.”

    PCSB FINANCIAL CORPORATION

    On January 1, 2023, the Company completed its previously announced acquisition (the “merger”) of PCSB. PCSB’s bank subsidiary, PCSB Bank, now operates as a separate subsidiary of the Company and has 15 banking offices throughout Westchester County and the lower Hudson Valley of New York state. The transaction included the acquisition of approximately $1.3 billion in loans, the assumption of $1.6 billion in deposits, and $52.9 million of borrowings, each at fair value. Total consideration of $297.8 million consisted of 11,820,904 shares of the Company's common stock issued and cash of $130.5 million.

    The following table provides the purchase price allocation of net assets acquired for this transaction:

    Assets: 
    Cash$42,373 
    Investments 366,763 
    Loans 1,336,737 
    Allowance for credit losses on PCD Loans (2,344)
    Bank premises and equipment 14,631 
    Goodwill 80,813 
    CDI 30,265 
    Other Assets 104,663 
    Total Assets Acquired$1,973,901 
      
    Liabilities: 
    Deposits$1,570,563 
    Borrowings 52,923 
    Other Liabilities 52,624 
    Total Liabilities$1,676,110 
    Purchase Price$297,791 
        

    BALANCE SHEET

    Total assets at March 31, 2023 increased $2.3 billion to $11.5 billion from $9.2 billion at December 31, 2022, and increased $2.9 billion from $8.6 billion at March 31, 2022. At March 31, 2023, total loans and leases were $9.2 billion, representing an increase of $1.6 billion from December 31, 2022, and an increase of $2.0 billion from March 31, 2022. The loan portfolio grew $1.6 billion in the first quarter compared to growth of $223.1 million in the fourth quarter.

    Total investment securities at March 31, 2023 increased $410.3 million to $1.1 billion from $656.8 million at December 31, 2022, and increased $336.5 million from $730.6 million at March 31, 2022. Total cash and cash equivalents at March 31, 2023 increased $103.3 million to $486.3 million from $383.0 million at December 31, 2022, and increased $193.0 million from $293.3 million at March 31, 2022. As of March 31, 2023, total investment securities and total cash and cash equivalents represented 13.5 percent of total assets as compared to 11.3 percent and 11.9 percent as of December 31, 2022 and March 31, 2022, respectively.

    Total deposits at March 31, 2023 increased $1.9 billion to $8.5 billion from $6.5 billion at December 31, 2022, and increased $1.4 billion from $7.1 billion at March 31, 2022.

    Total borrowed funds at March 31, 2023 increased $197.5 million to $1.6 billion from $1.4 billion at December 31, 2022, and increased $1.2 billion from $392.9 million at March 31, 2022.

    The ratio of stockholders’ equity to total assets was 10.11 percent at March 31, 2023, as compared to 10.80 percent at December 31, 2022, and 11.37 percent at March 31, 2022. The ratio of tangible stockholders’ equity to tangible assets (non-GAAP) was 7.94 percent at March 31, 2023, as compared to 9.20 percent at December 31, 2022, and 9.67 percent at March 31, 2022. Tangible book value per share (non-GAAP) decreased $0.72 from $10.80 at December 31, 2022 to $10.08 at March 31, 2023, compared to $10.56 at March 31, 2022.

    NET INTEREST INCOME

    Net interest income increased $6.0 million to $86.0 million for the first quarter of 2023 from $80.0 million for the quarter ended December 31, 2022. The net interest margin decreased 45 basis points to 3.36 percent for the three months ended March 31, 2023 from 3.81 percent for the three months ended December 31, 2022.

    NON-INTEREST INCOME

    Total non-interest income for the quarter ended March 31, 2023 increased $3.9 million to $12.9 million from $9.1 million for the quarter ended December 31, 2022. The increase was primarily driven by increases of $2.1 million in other non-interest income which was primarily driven by the mark to market on interest rate swaps on participated loans and bank owned life insurance income, $1.7 million in loan level derivative income, net, and $1.4 million in gain on securities, net, partially offset by a decrease of $1.0 million in gain on sales of loans and leases and a decrease of $0.3 million in deposit fees.

    PROVISION FOR CREDIT LOSSES

    The Company recorded a provision for credit losses of $25.5 million for the quarter ended March 31, 2023, compared to $5.7 million for the quarter ended December 31, 2022. The increase in the provision for credit losses was primarily driven by the acquisition of PCSB Bank as well as loan growth.

    Total net charge-offs for the first quarter of 2023 were $0.5 million compared to $0.3 million in the fourth quarter of 2022. The increase was primarily driven by an increase in net charge-offs on equipment financing loans of $0.2 million. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis was 2 basis points for the first quarter of 2023, unchanged from 2 basis points for the fourth quarter of 2022.

    The allowance for loan and lease losses represented 1.31 percent of total loans and leases at March 31, 2023, compared to 1.29 percent at December 31, 2022, and 1.32 percent at March 31, 2022.

    ASSET QUALITY

    The ratio of nonperforming loans and leases to total loans and leases was 0.31 percent at March 31, 2023, an increase from 0.19 percent at December 31, 2022. Total nonaccrual loans and leases increased $13.6 million to $28.5 million at March 31, 2023 from $14.9 million at December 31, 2022. The ratio of nonperforming assets to total assets was 0.25 percent at March 31, 2023, an increase from 0.17 percent at December 31, 2022. Total nonperforming assets increased $13.7 million to $29.0 million at March 31, 2023 from $15.3 million at December 31, 2022. The increase in nonperforming assets was primarily driven by the acquisition of PCSB in addition to a single C&I loan relationship.

    NON-INTEREST EXPENSE

    Non-interest expense for the quarter ended March 31, 2023 increased $17.6 million to $64.8 million from $47.2 million for the quarter ended December 31, 2022. The increase was primarily driven by increases of $7.0 million in compensation and employee benefits expense, $5.8 million in merger and acquisition expense, $1.8 million in amortization of identified intangible assets expense, $1.2 million in occupancy, $0.7 million in equipment and data processing expense, $0.4 million in advertising and marketing expense, $0.5 million in other non-interest expense, and $0.2 million in FDIC insurance expense, partially offset by a decrease of $0.1 million in professional services expense.

    PROVISION FOR INCOME TAXES

    The effective tax rate was 12.8 percent for the three months ended March 31, 2023 compared to 17.8 percent for the three months ended December 31, 2022 and 25.2 percent for the three months ended March 31, 2022.

    RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

    The annualized return on average assets decreased to 0.27 percent during the first quarter 2023 from 1.34 percent for the fourth quarter of 2022.

    The annualized return on average stockholders' equity decreased to 2.61 percent during the first quarter of 2023 from 12.09 percent for the fourth quarter of 2022. The annualized return on average tangible stockholders’ equity decreased to 3.43 percent for the first quarter of 2023 from 14.48 percent for the fourth quarter of 2022.

    DIVIDEND DECLARED

    The Company’s Board of Directors approved a dividend of $0.135 per share for the quarter ended March 31, 2023. The dividend will be paid on May 26, 2023 to stockholders of record on May 12, 2023.

    CONFERENCE CALL

    The Company will conduct a conference call/webcast at 1:30 PM Eastern Time on Thursday, April 27, 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/119704415. 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 576006). 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: 989324.

    ABOUT BROOKLINE BANCORP, INC.

    Brookline Bancorp, Inc., a bank holding company with $11.5 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
    		 
     March 31,
    2023    		 December 31,
    2022    		 September 30,
    2022    		 June 30,
    2022    		 March 31,
    2022
     (Dollars In Thousands Except per Share Data)
    Earnings Data:              
    Net interest income$86,049  $80,030  $78,026  $71,867  $69,848 
    Provision (credit) for credit losses25,542  5,725  2,835  227  (160)
    Non-interest income12,937  9,056  6,834  6,928  5,529 
    Non-interest expense64,776  47,225  44,959  44,871  42,487 
    Income before provision for income taxes8,668  36,136  37,066  33,697  33,050 
    Net income7,560  29,695  30,149  25,195  24,705 
                   
    Performance Ratios:              
    Net interest margin (1)3.36% 3.81% 3.80% 3.56% 3.49%
    Interest-rate spread (1)2.66% 3.35% 3.58% 3.41% 3.31%
    Return on average assets (annualized)0.27% 1.34% 1.40% 1.18% 1.16%
    Return on average tangible assets (annualized) (non-GAAP)0.28% 1.37% 1.43% 1.21% 1.18%
    Return on average stockholders' equity (annualized)2.61% 12.09% 12.29% 10.32% 9.91%
    Return on average tangible stockholders' equity (annualized) (non-GAAP)3.43% 14.48% 14.72% 12.39% 11.84%
    Efficiency ratio (2)65.44% 53.01% 52.98% 56.95% 56.37%
                   
    Per Common Share Data:              
    Net income — Basic$0.09  $0.39  $0.39  $0.33  $0.32 
    Net income — Diluted0.09  0.39  0.39  0.33  0.32 
    Cash dividends declared0.135  0.135  0.135  0.130  0.130 
    Book value per share (end of period)13.14  12.91  12.54  12.63  12.65 
    Tangible book value per share (end of period) (non-GAAP)10.08  10.80  10.43  10.51  10.56 
    Stock price (end of period)10.50  14.15  11.65  13.31  15.82 
                   
    Balance Sheet:              
    Total assets$11,522,485  $9,185,836  $8,695,708  $8,514,230  $8,633,736 
    Total loans and leases9,246,965  7,644,388  7,421,304  7,291,912  7,223,130 
    Total deposits8,456,462  6,522,146  6,735,605  6,894,457  7,094,378 
    Total stockholders’ equity1,165,066  992,125  963,618  968,496  981,935 
                   
    Asset Quality:              
    Nonperforming assets$28,962  $15,302  $18,312  $21,259  $26,506 
    Nonperforming assets as a percentage of total assets0.25% 0.17% 0.21% 0.25% 0.31%
    Allowance for loan and lease losses$120,865  $98,482  $94,169  $93,188  $95,463 
    Allowance for loan and lease losses as a percentage of total loans and leases1.31% 1.29% 1.27% 1.28% 1.32%
    Net loan and lease charge-offs (recoveries)$451  $310  $(179) $1,242  $1,947 
    Net loan and lease charge-offs as a percentage of average loans and leases (annualized)0.02% 0.02% (0.01)% 0.07% 0.11%
                   
    Capital Ratios:              
    Stockholders’ equity to total assets10.11% 10.80% 11.08% 11.38% 11.37%
    Tangible stockholders’ equity to tangible assets (non-GAAP)7.94% 9.20% 9.39% 9.65% 9.67%
                   
    (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)
          
     March 31,
    2023    		December 31,
    2022    		September 30,
    2022    		June 30,
    2022    		March 31,
    2022
    ASSETS(In Thousands Except Share Data)
    Cash and due from banks$30,782 $191,767 $65,638 $50,429 $89,032 
    Short-term investments 455,538  191,192  46,873  39,900  204,239 
    Total cash and cash equivalents 486,320  382,959  112,511  90,329  293,271 
    Investment securities available-for-sale 1,067,032  656,766  675,692  717,818  730,562 
    Total investment securities 1,067,032  656,766  675,692  717,818  730,562 
    Loans and leases:     
    Commercial real estate loans 5,610,414  4,404,148  4,269,512  4,225,754  4,235,325 
    Commercial loans and leases 2,147,149  2,016,499  1,933,645  1,860,182  1,800,383 
    Consumer loans 1,489,402  1,223,741  1,218,147  1,205,976  1,187,422 
    Total loans and leases 9,246,965  7,644,388  7,421,304  7,291,912  7,223,130 
    Allowance for loan and lease losses (120,865) (98,482) (94,169) (93,188) (95,463)
    Net loans and leases 9,126,100  7,545,906  7,327,135  7,198,724  7,127,667 
    Restricted equity securities 86,230  71,307  44,760  35,406  29,066 
    Premises and equipment, net of accumulated depreciation 87,799  71,391  69,912  69,557  69,365 
    Right-of-use asset operating leases 30,067  19,484  18,614  18,226  19,571 
    Deferred tax asset 75,028  52,237  56,894  50,736  46,886 
    Goodwill 241,222  160,427  160,427  160,427  160,427 
    Identified intangible assets, net of accumulated amortization 30,080  1,781  1,902  2,022  2,142 
    Other real estate owned and repossessed assets 508  408  591  507  990 
    Other assets 292,099  223,170  227,270  170,478  153,789 
    Total assets$11,522,485 $9,185,836 $8,695,708 $8,514,230 $8,633,736 
    LIABILITIES AND STOCKHOLDERS' EQUITY     
    Deposits:     
    Demand checking accounts$1,899,370 $1,802,518 $1,848,562 $1,845,365 $1,903,331 
    NOW accounts 757,411  544,118  597,870  628,791  627,904 
    Savings accounts 1,268,375  762,271  824,789  894,926  967,183 
    Money market accounts 2,185,971  2,174,952  2,405,680  2,402,992  2,432,377 
    Certificate of deposit accounts 1,362,970  928,143  924,771  1,006,786  1,048,036 
    Brokered deposit accounts 982,365  310,144  133,933  115,597  115,547 
    Total deposits 8,456,462  6,522,146  6,735,605  6,894,457  7,094,378 
    Borrowed funds:     
    Advances from the FHLBB 1,458,457  1,237,823  557,895  307,967  201,236 
    Subordinated debentures and notes 84,080  84,044  84,008  83,970  83,934 
    Other borrowed funds 87,565  110,785  116,865  86,263  107,727 
    Total borrowed funds 1,630,102  1,432,652  758,768  478,200  392,897 
    Operating lease liabilities 31,373  19,484  18,614  18,226  19,571 
    Mortgagors’ escrow accounts 17,080  5,607  5,785  5,771  5,780 
    Reserve for unfunded credits 23,112  20,602  19,555  17,511  16,305 
    Accrued expenses and other liabilities 199,290  193,220  193,763  131,569  122,870 
    Total liabilities 10,357,419  8,193,711  7,732,090  7,545,734  7,651,801 
    Stockholders' equity:     
    Common stock, $0.01 par value; 200,000,000 shares authorized; 96,998,075 shares issued, 85,177,172 shares issued, 85,177,172 shares issued, 85,177,172 shares issued, and 85,177,172 shares issued, respectively 970  852  852  852  852 
    Additional paid-in capital 904,174  736,074  735,119  738,544  737,658 
    Retained earnings, partially restricted 407,528  412,019  392,779  372,677  357,576 
    Accumulated other comprehensive income (52,688) (61,947) (70,227) (44,977) (29,322)
    Treasury stock, at cost;     
    7,734,891, 7,731,445, 7,730,945, 7,995,888, and 7,037,464 shares, respectively (94,918) (94,873) (94,866) (98,525) (84,718)
    Unallocated common stock held by the Employee Stock Ownership Plan;     
    0, 0, 4,833, 11,442, and 18,051 shares, respectively —  —  (39) (75) (111)
    Total stockholders' equity 1,165,066  992,125  963,618  968,496  981,935 
    Total liabilities and stockholders' equity$11,522,485 $9,185,836 $8,695,708 $8,514,230 $8,633,736 
          


     
    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Consolidated Statements of Income (Unaudited)
     
     Three Months Ended
     March 31,
    2023    		December 31,
    2022    		September 30,
    2022    		June 30,
    2022    		March 31,
    2022
     (In Thousands Except Share Data)
    Interest and dividend income:     
    Loans and leases$121,931 $98,386 $84,375 $74,287 $71,721 
    Debt securities 7,870  3,497  3,337  3,249  2,996 
    Restricted equity securities 1,255  766  467  337  328 
    Short-term investments 1,495  754  464  156  66 
    Total interest and dividend income 132,551  103,403  88,643  78,029  75,111 
    Interest expense:     
    Deposits 29,368  14,185  7,354  4,282  3,771 
    Borrowed funds 17,134  9,188  3,263  1,880  1,492 
    Total interest expense 46,502  23,373  10,617  6,162  5,263 
    Net interest income 86,049  80,030  78,026  71,867  69,848 
    Provision (credit) for credit losses 25,542  5,725  2,835  227  (160)
    Net interest income after provision for credit losses 60,507  74,305  75,191  71,640  70,008 
    Non-interest income:     
    Deposit fees 2,657  2,916  2,759  2,744  2,500 
    Loan fees 391  446  349  666  747 
    Loan level derivative income, net 2,373  670  1,275  1,615  686 
    Gain on investment securities, net 1,701  321  —  —  — 
    Gain on sales of loans and leases held-for-sale 1,638  2,612  889  291  344 
    Other 4,177  2,091  1,562  1,612  1,252 
    Total non-interest income 12,937  9,056  6,834  6,928  5,529 
    Non-interest expense:     
    Compensation and employee benefits 36,565  29,525  28,306  28,772  26,884 
    Occupancy 5,223  4,005  3,906  3,807  4,284 
    Equipment and data processing 6,462  5,758  5,066  4,931  5,078 
    Professional services 1,430  1,546  1,069  1,219  1,226 
    FDIC insurance 1,244  1,001  709  739  728 
    Advertising and marketing 1,410  1,052  1,337  1,319  1,272 
    Amortization of identified intangible assets 1,966  120  120  120  134 
    Merger and acquisition expense 6,409  641  1,073  535  — 
    Other 4,067  3,577  3,373  3,429  2,881 
    Total non-interest expense 64,776  47,225  44,959  44,871  42,487 
    Income before provision for income taxes 8,668  36,136  37,066  33,697  33,050 
    Provision for income taxes 1,108  6,441  6,917  8,502  8,345 
    Net income$7,560 $29,695 $30,149 $25,195 $24,705 
    Earnings per common share:     
    Basic$0.09 $0.39 $0.39 $0.33 $0.32 
    Diluted$0.09 $0.39 $0.39 $0.33 $0.32 
    Weighted average common shares outstanding during the period:    
    Basic 86,563,641  76,841,655  76,779,038  77,091,013  77,617,227 
    Diluted 86,837,806  77,065,076  77,007,971  77,419,288  77,926,822 
    Dividends paid per common share$0.135 $0.135 $0.130 $0.130 $0.125 


     
    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Asset Quality Analysis (Unaudited)
     
     At and for the Three Months Ended
     March 31,
    2023    		December 31,
    2022    		September 30,
    2022    		June 30,
    2022    		March 31,
    2022
     (Dollars in Thousands)
    NONPERFORMING ASSETS:               
    Loans and leases accounted for on a nonaccrual basis:               
    Commercial real estate mortgage$4,589 $607 $3,136 $6,470 $8,313 
    Construction 3,883  707  —  —  — 
    Total commercial real estate loans 8,472  1,314  3,136  6,470  8,313 
                    
    Commercial 5,495  464  618  892  1,366 
    Equipment financing 9,908  9,653  10,544  10,183  11,685 
    Condominium association 51  58  64  71  77 
    Total commercial loans and leases 15,454  10,175  11,226  11,146  13,128 
                    
    Residential mortgage 3,449  2,680  2,741  2,412  3,394 
    Home equity 1,079  723  616  721  680 
    Other consumer —  2  2  3  1 
    Total consumer loans 4,528  3,405  3,359  3,136  4,075 
                    
    Total nonaccrual loans and leases 28,454  14,894  17,721  20,752  25,516 
                    
    Other repossessed assets 508  408  591  507  990 
    Total nonperforming assets$28,962 $15,302 $18,312 $21,259 $26,506 
                    
    Loans and leases past due greater than 90 days and still accruing$726 $33 $9,583 $266 $4 
                    
    Nonperforming loans and leases as a percentage of total loans and leases 0.31% 0.19% 0.24% 0.28% 0.35%
    Nonperforming assets as a percentage of total assets 0.25% 0.17% 0.21% 0.25% 0.31%
                    
    PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:               
    Allowance for loan and lease losses at beginning of period$98,482 $94,169 $93,188 $95,463 $99,084 
    Charge-offs (845) (658) (598) (1,533) (2,344)
    Recoveries 394  348  777  291  397 
    Net (charge-offs) recoveries (451) (310) 179  (1,242) (1,947)
    Provision (credit) for loan and lease losses excluding unfunded commitments * 22,834  4,623  802  (1,033) (1,674)
    Allowance for loan and lease losses at end of period$120,865 $98,482 $94,169 $93,188 $95,463 
                    
    Allowance for loan and lease losses as a percentage of total loans and leases 1.31% 1.29% 1.27% 1.28% 1.32%
                    
    NET CHARGE-OFFS (RECOVERIES):               
    Commercial real estate loans$(6)$(6)$(6)$(6)$31 
    Commercial loans and leases 457  320  (179) 1,254  1,948 
    Consumer loans —  (4) 6  (6) (32)
    Total net charge-offs (recoveries)$451 $310 $(179)$1,242 $1,947 
                    
    Net loan and lease charge-offs as a percentage of average loans and leases (annualized) 0.02% 0.02% (0.01)% 0.07% 0.11%
          
    *Provision for loan and lease losses does not include provision of $2.5 million, $1.0 million, $2.0 million, $1.2 million, and $1.5 million for credit losses on unfunded commitments during the three months ended March 31, 2023, December 31, 2022, September 30, 2022, June 30, 2022 and March 31, 2022, respectively.                    


     
    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Average Yields / Costs (Unaudited)
     
     Three Months Ended
     March 31, 2023December 31, 2022March 31, 2022
     Average
    Balance    		Interest (1)Average
    Yield/Cost    		Average
    Balance    		Interest (1)Average
    Yield/Cost    		Average
    Balance    		Interest (1)Average
    Yield/Cost
     (Dollars in Thousands)
    Assets:                       
    Interest-earning assets:                       
    Investments:                       
    Debt securities (2)$1,029,068 $7,9743.10% $665,969 $3,4972.10% $720,263 $2,9961.66%
    Marketable and restricted equity securities (2) 76,911  1,2556.53%  52,093  7665.88%  27,909  3284.70%
    Short-term investments 147,654  1,4954.05%  60,385  7545.00%  192,475  660.14%
    Total investments 1,253,633  10,7243.42%  778,447  5,0172.58%  940,647  3,3901.44%
    Loans and Leases:                       
    Commercial real estate loans (3) 5,579,977  67,6674.85%  4,341,929  53,0884.78%  4,152,414  36,0273.47%
    Commercial loans (3) 892,522  14,0176.28%  797,312  10,5415.18%  755,809  7,9984.23%
    Equipment financing (3) 1,226,717  21,2136.92%  1,200,911  20,8166.93%  1,105,194  18,0126.52%
    Residential mortgage loans (3) 1,032,025  11,0734.29%  842,860  8,0513.82%  804,939  6,9923.47%
    Other consumer loans (3) 420,047  7,9977.71%  382,196  5,9406.15%  366,534  2,7503.04%
    Total loans and leases 9,151,288  121,9675.33%  7,565,208  98,4365.20%  7,184,890  71,7794.00%
    Total interest-earning assets 10,404,921  132,6915.10%  8,343,655  103,4534.96%  8,125,537  75,1693.70%
    Non-interest-earning assets 726,166       513,976       405,506     
    Total assets$11,131,087      $8,857,631      $8,531,043     
                            
    Liabilities and Stockholders' Equity:                       
    Interest-bearing liabilities:                       
    Deposits:                       
    NOW accounts$810,333  9010.45% $583,499  2570.18% $589,891  1030.07%
    Savings accounts 1,160,003  2,5140.88%  787,021  1,1550.58%  933,173  1980.09%
    Money market accounts 2,366,235  12,1402.08%  2,282,217  7,7111.34%  2,416,577  1,5700.26%
    Certificates of deposit 1,346,761  7,4562.25%  922,250  2,8651.23%  1,091,729  1,8480.69%
    Brokered deposit accounts 534,527  6,3574.82%  218,188  2,1973.99%  132,751  520.16%
    Total interest-bearing deposits 6,217,859  29,3681.92%  4,793,175  14,1851.17%  5,164,121  3,7710.30%
    Borrowings                       
    Advances from the FHLBB 1,264,523  14,5314.60%  736,652  6,9793.71%  103,878  1870.72%
    Subordinated debentures and notes 84,062  1,3546.44%  84,025  1,3326.34%  83,915  1,2445.93%
    Other borrowed funds 158,499  1,2493.20%  148,195  8772.35%  130,080  610.19%
    Total borrowings 1,507,084  17,1344.55%  968,872  9,1883.71%  317,873  1,4921.88%
    Total interest-bearing liabilities 7,724,943  46,5022.44%  5,762,047  23,3731.61%  5,481,994  5,2630.39%
    Non-interest-bearing liabilities:                       
    Demand checking accounts 1,930,162       1,843,780       1,880,039     
    Other non-interest-bearing liabilities 316,347       269,498       171,717     
    Total liabilities 9,971,452       7,875,325       7,533,750     
    Stockholders’ equity 1,159,635       982,306       997,293     
    Total liabilities and equity$11,131,087      $8,857,631      $8,531,043     
    Net interest income (tax-equivalent basis) /Interest-rate spread (4)    86,1892.66%     80,0803.35%     69,9063.31%
    Less adjustment of tax-exempt income    140       50       58  
    Net interest income   $86,049      $80,030      $69,848  
    Net interest margin (5)     3.36%      3.81%      3.49%
                            
    (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 March 31,
        20232022
    Reconciliation Table - Non-GAAP Financial Information  (Dollars in Thousands Except Share Data)
         
    Reported Pretax Income  $8,668 $33,050 
    Less:     
    Security gains   1,701  — 
    Add:     
    Day 1 PCSB CECL provision   16,744  — 
    Merger and acquisition expense   6,409  — 
    Operating Pretax Income   $30,120 $33,050 
    Estimated effective tax rate    22.7% 25.2%
    Estimated taxes    6,837  8,345 
    Operating earnings after tax   $23,283 $24,705 
          
    Operating earnings per common share:     
    Basic   $0.27 $0.32 
    Diluted   $0.27 $0.32 
          
    Weighted average common shares outstanding during the period:    
    Basic    86,563,641  77,617,227 
    Diluted    86,837,806  77,926,822 
          
          
    Return on average assets *   0.27% 1.16%
    Less:     
    Security gains (after-tax) *   0.05% —%
    Add:     
    Day 1 PCSB CECL provision *   0.47% —%
    Merger and acquisition expense (after-tax) *   0.18% —%
    Operating return on average assets *   0.87% 1.16%
          
          
    Return on average tangible assets *   0.28% 1.18%
    Less:     
    Security gains (after-tax) *   0.05% —%
    Add:     
    Day 1 PCSB CECL provision *   0.48% —%
    Merger and acquisition expense (after-tax) *   0.18% —%
    Operating return on average tangible assets *   0.89% 1.18%
          
          
    Return on average stockholders' equity *   2.61% 9.91%
    Less:     
    Security gains (after-tax) *   0.45% —%
    Add:     
    Day 1 PCSB CECL provision *   4.46% —%
    Merger and acquisition expense (after-tax) *   1.71% —%
    Operating return on average stockholders' equity *   8.33% 9.91%
          
          
    Return on average tangible stockholders' equity *   3.43% 11.84%
    Less:     
    Security gains (after-tax) *   0.60% —%
    Add:     
    Day 1 PCSB CECL provision *   5.87% —%
    Merger and acquisition expense (after-tax) *   2.25% —%
    Operating return on average tangible stockholders' equity *   10.95% 11.84%
          
    * Ratios at and for the three months ended are annualized.    
          
     At and for the Three Months Ended
     March 31,
    2023    		December 31,
    2022    		September 30,
    2022    		June 30,
    2022    		March 31,
    2022
     (Dollars in Thousands)
          
    Net income, as reported$7,560 $29,695 $30,149 $25,195 $24,705 
          
    Average total assets$11,131,087 $8,857,631 $8,586,420 $8,515,330 $8,531,043 
    Less: Average goodwill and average identified intangible assets, net 278,135  162,266  162,387  162,507  162,632 
    Average tangible assets$10,852,952 $8,695,365 $8,424,033 $8,352,823 $8,368,411 
          
    Return on average tangible assets (annualized) 0.28 % 1.37 % 1.43 % 1.21 % 1.18 %
          
    Average total stockholders’ equity$1,159,635 $982,306 $981,379 $976,167 $997,293 
    Less: Average goodwill and average identified intangible assets, net 278,135  162,266  162,387  162,507  162,632 
    Average tangible stockholders’ equity$881,500 $820,040 $818,992 $813,660 $834,661 
          
    Return on average tangible stockholders’ equity (annualized) 3.43 % 14.48 % 14.72 % 12.39 % 11.84 %
          
    Total stockholders’ equity$1,165,066 $992,125 $963,618 $968,496 $981,935 
    Less:     
    Goodwill 241,222  160,427  160,427  160,427  160,427 
    Identified intangible assets, net 30,080  1,781  1,902  2,022  2,142 
    Tangible stockholders' equity$893,764 $829,917 $801,289 $806,047 $819,366 
          
    Total assets$11,522,485 $9,185,836 $8,695,708 $8,514,230 $8,633,736 
    Less:     
    Goodwill 241,222  160,427  160,427  160,427  160,427 
    Identified intangible assets, net 30,080  1,781  1,902  2,022  2,142 
    Tangible assets$11,251,183 $9,023,628 $8,533,379 $8,351,781 $8,471,167 
          
    Tangible stockholders’ equity to tangible assets 7.94 % 9.20 % 9.39 % 9.65 % 9.67 %
          
    Tangible stockholders' equity$893,764 $829,917 $801,289 $806,047 $819,366 
          
    Number of common shares issued 96,998,075  85,177,172  85,177,172  85,177,172  85,177,172 
    Less:     
    Treasury shares 7,734,891  7,731,445  7,730,945  7,995,888  7,037,464 
    Unallocated ESOP shares —  —  4,833  11,442  18,051 
    Unvested restricted shares 598,049  601,495  601,995  497,297  500,098 
    Number of common shares outstanding 88,665,135  76,844,232  76,839,399  76,672,545  77,621,559 
          
    Tangible book value per common share$ 10.08 $ 10.80 $ 10.43 $ 10.51 $ 10.56 

      

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