Net Income of $22.9 million, EPS of $0.26

Quarterly Dividend of $0.135

BOSTON, Jan. 24, 2024 (GLOBE NEWSWIRE) -- Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced net income of $22.9 million, or $0.26 per basic and diluted share, for the fourth quarter of 2023, compared to $22.7 million, or $0.26 per basic and diluted share, for the third quarter of 2023, and $29.7 million, or $0.39 per basic and diluted share, for the fourth quarter of 2022.

For the year ended December 31, 2023, the Company reported net income of $75.0 million, or $0.85 per basic and diluted share, compared to $109.7 million, or $1.42 per basic and diluted share, for the year ended December 31, 2022. For the year ended December 31, 2023, the Company reported operating earnings of $92.9 million, or $1.05 per basic and diluted share, compared to $111.3 million, or $1.44 per basic and diluted share, for the year ended December 31, 2022.

Brookline Bancorp, Inc. CEO and Chairman Paul Perrault commented on 2023 performance, “Brookline Bancorp began the year by welcoming PCSB Bank customers and employees to our family of banks. I would like to thank our customers and the continued hard work and dedication of all our Company’s employees to our overall success in 2023. In 2023, our industry experienced challenging headwinds. As we enter 2024, we remain well positioned to take advantage of opportunities in the tremendous markets we serve.”

BALANCE SHEET

Total assets at December 31, 2023 increased $201.7 million to $11.4 billion from $11.2 billion at September 30, 2023, and increased $2.2 billion from $9.2 billion at December 31, 2022. At December 31, 2023, total loans and leases were $9.6 billion, representing an increase of $260.8 million from September 30, 2023, and an increase of $2.0 billion from December 31, 2022, primarily driven by the acquisition of PCSB Financial Corporation ("PCSB").

Total investment securities at December 31, 2023 increased $36.2 million to $916.6 million from $880.4 million at September 30, 2023, and increased $259.8 million from $656.8 million at December 31, 2022. Total cash and cash equivalents at December 31, 2023 decreased $28.0 million to $133.0 million from $161.0 million at September 30, 2023, and decreased $249.9 million from $383.0 million at December 31, 2022. As of December 31, 2023, total investment securities and total cash and cash equivalents represented 9.2 percent of total assets as compared to 9.3 percent and 11.3 percent as of September 30, 2023 and December 31, 2022, respectively.

Total deposits at December 31, 2023 decreased $17.9 million, $13.2 million of which was related to brokered deposits, to $8.5 billion from $8.6 billion at September 30, 2023 and increased $2.0 billion from $6.5 billion at December 31, 2022, primarily driven by the completion of the PCSB acquisition.

Total borrowed funds at December 31, 2023 increased $241.6 million to $1.4 billion from $1.1 billion at September 30, 2023, driven by the need to fund loan growth during the quarter, and decreased $56.0 million from $1.4 billion at December 31, 2022.

The ratio of stockholders’ equity to total assets was 10.53 percent at December 31, 2023, as compared to 10.36 percent at September 30, 2023, and 10.80 percent at December 31, 2022. The ratio of tangible stockholders’ equity to tangible assets (non-GAAP) was 8.39 percent at December 31, 2023, as compared to 8.16 percent at September 30, 2023, and 9.20 percent at December 31, 2022. Tangible book value per common share (non-GAAP) increased $0.48 from $10.02 at September 30, 2023 to $10.50 at December 31, 2023, compared to $10.80 at December 31, 2022.

NET INTEREST INCOME

Net interest income decreased $0.5 million to $83.6 million during the fourth quarter of 2023 from $84.1 million for the quarter ended September 30, 2023. The net interest margin decreased 3 basis points to 3.15 percent for the three months ended December 31, 2023 from 3.18 percent for the three months ended September 30, 2023, primarily driven by higher funding costs.

NON-INTEREST INCOME

Total non-interest income for the quarter ended December 31, 2023 increased $2.5 million to $8.0 million from $5.5 million for the quarter ended September 30, 2023. The increase was primarily driven by an increase of $2.0 million in other non-interest income, due to the mark to market on interest rate swaps, an increase of $0.4 million in loan level derivative income, net, and an increase of $0.2 million in gain on sales of loans and leases.

PROVISION FOR CREDIT LOSSES

The Company recorded a provision for credit losses of $3.8 million for the quarter ended December 31, 2023, compared to $3.0 million for the quarter ended September 30, 2023. The provision was driven by net charge-offs, an increase in specific reserves and strong loan growth, partially offset by a reduction in the unfunded reserve.

Total net charge-offs for the fourth quarter of 2023 were $7.1 million compared to $11.0 million in the third quarter of 2023, of which $4.5 million was previously reserved for. The $7.1 million in net charge-offs were driven by three individual charge-offs including a $3.3 million commercial loan, $1.0 million equipment financing loan, and a $0.9 million commercial real estate loan. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis decreased to 30 basis points for the fourth quarter of 2023 from 47 basis points for the third quarter of 2023.

The allowance for loan and lease losses represented 1.22 percent of total loans and leases at December 31, 2023, compared to 1.27 percent at September 30, 2023, and 1.29 percent at December 31, 2022. The decrease in ratio is driven by a change in loan mix consisting of a reduction in total construction commitments.

ASSET QUALITY

The ratio of total nonperforming loans and leases to total loans and leases was 0.45 percent at December 31, 2023 as compared to 0.55 percent at September 30, 2023. Total nonaccrual loans and leases decreased $7.6 million to $43.6 million at December 31, 2023 from $51.2 million at September 30, 2023. The ratio of nonperforming assets to total assets was 0.40 percent at December 31, 2023 as compared to 0.46 percent at September 30, 2023. Total nonperforming assets decreased $6.2 million to $45.3 million at December 31, 2023 from $51.5 million at September 30, 2023.

NON-INTEREST EXPENSE

Non-interest expense for the quarter ended December 31, 2023 increased $1.6 million to $59.2 million from $57.7 million for the quarter ended September 30, 2023. The increase was primarily driven by increases of $1.9 million in compensation and employee benefits and $0.5 million in equipment and data processing, partially offset by decreases of $0.9 million in professional services expense, $0.4 million in advertising and marketing expense, and $0.3 million in FDIC insurance expense.

PROVISION FOR INCOME TAXES

The effective tax rate was 19.9 percent and 20.1 percent for the three and twelve months ended December 31, 2023 compared to 21.4 percent for the three months ended September 30, 2023 and 17.8 percent and 21.6 percent for the three and twelve months ended December 31, 2022.

RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

The annualized return on average assets was 0.81 percent during the fourth quarter of 2023 and flat compared to the third quarter of 2023; and was 0.67 percent for the year ended December 31, 2023, compared to 1.27 percent for the year ended December 31, 2022.

The annualized return on average tangible stockholders' equity increased to 10.12 percent during the fourth quarter of 2023 compared to 10.09 percent for the third quarter of 2023; and was 8.36 percent for the year ended December 31, 2023 compared to 13.35 percent for the year ended December 31, 2022.

DIVIDEND DECLARED

The Company’s Board of Directors approved a dividend of $0.135 per share for the quarter ended December 31, 2023. The dividend will be paid on February 23, 2024 to stockholders of record on February 9, 2024.

CONFERENCE CALL

The Company will conduct a conference call/webcast at 1:30 PM Eastern Time on Thursday, January 25, 2024 to discuss the results for the quarter, business highlights and outlook. A copy of the Earnings Presentation is available on the Company’s website, www.brooklinebancorp.com. To listen to the call and view the Company’s Earnings Presentation, please join the call via https://events.q4inc.com/attendee/124233277. To listen to the call without access to the slides, please dial 833-470-1428 (United States) or 404-975-4839 (internationally) and ask for the Brookline Bancorp, Inc. call (Access Code 714087). A recording of the call will be available for one week following the call on the Company’s website under “Investor Relations” or by dialing 866-813-9403 (United States) or 929-458-6194 (internationally) and entering the passcode: 419492.

ABOUT BROOKLINE BANCORP, INC.

Brookline Bancorp, Inc., a bank holding company with approximately $11.4 billion in assets and branch locations in eastern Massachusetts, Rhode Island and the Lower Hudson Valley of New York State, is headquartered in Boston, Massachusetts and operates as the holding company for Brookline Bank, Bank Rhode Island, and PCSB Bank. The Company provides commercial and retail banking services and cash management and investment services to customers throughout Central New England and the Lower Hudson Valley of New York State. More information about Brookline Bancorp, Inc. and its banks can be found at the following websites: www.brooklinebank.com, www.bankri.com and www.pcsb.com.

FORWARD-LOOKING STATEMENTS

Certain statements contained in this press release that are not historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We may also make forward-looking statements in other documents we file with the Securities and Exchange Commission ("SEC"), in our annual reports to shareholders, in press releases and other written materials, and in oral statements made by our officers, directors or employees. You can identify forward looking statements by the use of the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “assume,” “outlook,” “will,” “should,” and other expressions that predict or indicate future events and trends and which do not relate to historical matters, including statements regarding the Company’s business, credit quality, financial condition, liquidity and results of operations. Forward-looking statements may differ, possibly materially, from what is included in this press release due to factors and future developments that are uncertain and beyond the scope of the Company’s control. These include, but are not limited to, changes in interest rates; general economic conditions (including inflation and concerns about liquidity) on a national basis or in the local markets in which the Company operates; turbulence in the capital and debt markets; competitive pressures from other financial institutions; changes in consumer behavior due to changing political, business and economic conditions, or legislative or regulatory initiatives; changes in the value of securities and other assets in the Company’s investment portfolio; increases in loan and lease default and charge-off rates; the adequacy of allowances for loan and lease losses; decreases in deposit levels that necessitate increases in borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity incidents, fraud, natural disasters, and future pandemics; changes in regulation; the possibility that future credit losses may be higher than currently expected due to changes in economic assumptions and adverse economic developments; the risk that goodwill and intangibles recorded in the Company’s financial statements will become impaired; and changes in assumptions used in making such forward-looking statements. Forward-looking statements involve risks and uncertainties which are difficult to predict. The Company’s actual results could differ materially from those projected in the forward-looking statements as a result of, among others, the risks outlined in the Company’s Annual Report on Form 10-K, as updated by its Quarterly Reports on Form 10-Q and other filings submitted to the SEC. The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.

BASIS OF PRESENTATION

The Company's consolidated financial statements have been prepared in conformity with generally accepted accounting principles (“GAAP”) as set forth by the Financial Accounting Standards Board in its Accounting Standards Codification and through the rules and interpretive releases of the SEC under the authority of federal securities laws. Certain amounts previously reported have been reclassified to conform to the current period's presentation.

NON-GAAP FINANCIAL MEASURES

The Company uses certain non-GAAP financial measures, such as operating earnings, operating earnings per common share, operating return on average assets, operating return on average tangible assets, operating return on average stockholders' equity, operating return on average tangible stockholders' equity, tangible book value per common share, tangible stockholders’ equity to tangible assets, return on average tangible assets (annualized) and return on average tangible stockholders' equity (annualized). These non-GAAP financial measures provide information for investors to effectively analyze financial trends of ongoing business activities, and to enhance comparability with peers across the financial services sector. A detailed reconciliation table of the Company's GAAP to the non-GAAP measures is attached.

INVESTOR RELATIONS:

Contact:Carl M. Carlson
 Brookline Bancorp, Inc.
 Co-President and Chief Financial and Strategy Officer
 (617) 425-5331
 ccarlson@brkl.com




BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Selected Financial Highlights (Unaudited)
 
 At and for the Three Months EndedAt and for the Twelve Months Ended
 December 31, 2023September 30, 2023June 30, 2023March 31, 2023December 31, 2022December 31, 2023December 31, 2022
 (Dollars In Thousands Except per Share Data)
Earnings Data:       
Net interest income$83,555 $84,070 $86,037 $86,049 $80,030 $339,711 $299,771 
Provision for credit losses on loans 3,851  2,947  5,726  25,344  5,671  37,868  8,525 
Provision (credit) for credit losses on investments (76) 84  133  198  54  339  102 
Non-interest income 8,027  5,508  5,462  12,937  9,056  31,934  28,347 
Non-interest expense 59,244  57,679  57,825  64,776  47,225  239,524  179,542 
Income before provision for income taxes 28,563  28,868  27,815  8,668  36,136  93,914  139,949 
Net income 22,888  22,701  21,850  7,560  29,695  74,999  109,744 
        
Performance Ratios:       
Net interest margin (1) 3.15% 3.18% 3.26% 3.36% 3.81% 3.24% 3.67%
Interest-rate spread (1) 2.39% 2.45% 2.51% 2.66% 3.35% 2.50% 3.40%
Return on average assets (annualized) 0.81% 0.81% 0.78% 0.27% 1.34% 0.67% 1.27%
Return on average tangible assets (annualized) (non-GAAP) 0.83% 0.83% 0.79% 0.28% 1.37% 0.69% 1.30%
Return on average stockholders' equity (annualized) 7.82% 7.78% 7.44% 2.61% 12.09% 6.42% 11.15%
Return on average tangible stockholders' equity (annualized) (non-GAAP) 10.12% 10.09% 9.67% 3.43% 14.48% 8.36% 13.35%
Efficiency ratio (2) 64.69% 64.39% 63.20% 65.44% 53.01% 64.45% 54.72%
        
Per Common Share Data:       
Net income — Basic$0.26 $0.26 $0.25 $0.09 $0.39 $0.85 $1.42 
Net income — Diluted 0.26  0.26  0.25  0.09  0.39  0.85  1.42 
Cash dividends declared 0.135  0.135  0.135  0.135  0.135  0.540  0.530 
Book value per share (end of period) 13.48  13.03  13.11  13.14  12.91  13.48  12.91 
Tangible book value per common share (end of period) (non-GAAP) 10.50  10.02  10.07  10.08  10.80  10.50  10.80 
Stock price (end of period) 10.91  9.11  8.74  10.50  14.15  10.91  14.15 
        
Balance Sheet:       
Total assets$11,382,256 $11,180,555 $11,206,078 $11,522,485 $9,185,836 $11,382,256 $9,185,836 
Total loans and leases 9,641,589  9,380,782  9,340,799  9,246,965  7,644,388  9,641,589  7,644,388 
Total deposits 8,548,125  8,566,013  8,517,013  8,456,462  6,522,146  8,548,125  6,522,146 
Total stockholders’ equity 1,198,644  1,157,871  1,162,308  1,165,066  992,125  1,198,644  992,125 
        
Asset Quality:       
Nonperforming assets$45,324 $51,540 $46,925 $28,962 $15,302 $45,324 $15,302 
Nonperforming assets as a percentage of total assets 0.40% 0.46% 0.42% 0.25% 0.17% 0.40% 0.17%
Allowance for loan and lease losses$117,522 $119,081 $125,817 $120,865 $98,482 $117,522 $98,482 
Allowance for loan and lease losses as a percentage of total loans and leases 1.22% 1.27% 1.35% 1.31% 1.29% 1.22% 1.29%
Net loan and lease charge-offs$7,141 $10,974 $1,097 $451 $310 $19,663 $3,320 
Net loan and lease charge-offs as a percentage of average loans and leases (annualized) 0.30% 0.47% 0.05% 0.02% 0.02% 0.21% 0.05%
        
Capital Ratios:       
Stockholders’ equity to total assets 10.53% 10.36% 10.37% 10.11% 10.80% 10.53% 10.80%
Tangible stockholders’ equity to tangible assets (non-GAAP) 8.39% 8.16% 8.16% 7.94% 9.20% 8.39% 9.20%
        
(1) Calculated on a fully tax-equivalent basis.       
(2) Calculated as non-interest expense as a percentage of net interest income plus non-interest income.       
        



BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets (Unaudited)
  December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022
ASSETS(In Thousands Except Share Data) 
Cash and due from banks$ 34,514$33,506$44,323$30,782$191,767
Short-term investments 98,513 127,495 180,109 455,538 191,192
Total cash and cash equivalents 133,027 161,001 224,432 486,320 382,959
Investment securities available-for-sale 916,601 880,412 910,210 1,067,032 656,766
Total investment securities 916,601 880,412 910,210 1,067,032 656,766
Allowance for investment security losses (441) (517) (433) (301) (102)
Net investment securities 916,160 879,895 909,777 1,066,731 656,664
Loans and leases:          
Commercial real estate loans 5,764,529 5,669,768 5,670,771 5,610,414 4,404,148
Commercial loans and leases 2,399,668 2,241,375 2,193,027 2,147,149 2,016,499
Consumer loans 1,477,392 1,469,639 1,477,001 1,489,402 1,223,741
Total loans and leases 9,641,589 9,380,782 9,340,799 9,246,965 7,644,388
Allowance for loan and lease losses (117,522) (119,081) (125,817) (120,865) (98,482)
Net loans and leases 9,524,067 9,261,701 9,214,982 9,126,100 7,545,906
Restricted equity securities 77,595 65,460 71,421 86,230 71,307
Premises and equipment, net of accumulated depreciation 89,853 90,476 90,685 87,799 71,391
Right-of-use asset operating leases 30,863 31,619 31,774 30,067 19,484
Deferred tax asset 56,952 74,491 77,704 75,028 52,237
Goodwill 241,222 241,222 241,222 241,222 160,427
Identified intangible assets, net of accumulated amortization 24,207 26,172 28,126 30,080 1,781
Other real estate owned and repossessed assets 1,694 299 602 508 408
Other assets 286,616 348,219 315,353 292,400 223,272
Total assets$11,382,256$11,180,555$11,206,078$11,522,485$9,185,836
LIABILITIES AND STOCKHOLDERS' EQUITY          
Deposits:          
Demand checking accounts$1,678,406$1,745,137$1,843,516$1,899,370$1,802,518
NOW accounts 661,863 647,476 699,119 757,411 544,118
Savings accounts 1,669,018 1,625,804 1,464,054 1,268,375 762,271
Money market accounts 2,082,810 2,161,359 2,166,570 2,185,971 2,174,952
Certificate of deposit accounts 1,574,855 1,491,844 1,410,905 1,362,970 928,143
Brokered deposit accounts 881,173 894,393 932,849 982,365 310,144
Total deposits 8,548,125 8,566,013 8,517,013 8,456,462 6,522,146
Borrowed funds:          
Advances from the FHLBB 1,223,226 899,304 1,043,381 1,458,457 1,237,823
Subordinated debentures and notes 84,188 84,152 84,116 84,080 84,044
Other borrowed funds 69,256 151,612 98,773 87,565 110,785
Total borrowed funds 1,376,670 1,135,068 1,226,270 1,630,102 1,432,652
Operating lease liabilities 31,998 32,807 33,021 31,373 19,484
Mortgagors’ escrow accounts 17,239 12,578 17,207 17,080 5,607
Reserve for unfunded credits 19,767 21,497 22,789 23,112 20,602
Accrued expenses and other liabilities 189,813 254,721 227,470 199,290 193,220
Total liabilities 10,183,612 10,022,684 10,043,770 10,357,419 8,193,711
Stockholders' equity:          
Common stock, $0.01 par value; 200,000,000 shares authorized; 96,998,075 shares issued, 96,998,075 shares issued, 96,998,075 shares issued, 96,998,075 shares issued, and 85,177,172 shares issued, respectively 970 970 970 970 852
Additional paid-in capital 902,659 901,376 905,084 904,174 736,074
Retained earnings 438,722 427,937 417,328 407,528 412,019
Accumulated other comprehensive income (52,798) (81,541) (66,156) (52,688) (61,947)
Treasury stock, at cost;          
7,354,399 shares, 7,350,981 shares, 7,734,891 shares, 7,734,891 shares, and 7,731,445 shares, respectively (90,909) (90,871) (94,918) (94,918) (94,873)
Total stockholders' equity 1,198,644 1,157,871 1,162,308 1,165,066 992,125
Total liabilities and stockholders' equity$11,382,256$11,180,555$11,206,078$11,522,485$9,185,836
           



BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
 Three Months Ended
 December 31, 2023September 30, 2023June 30, 2023March 31, 2023December 31, 2022
 (In Thousands Except Share Data)
Interest and dividend income:     
Loans and leases$142,948 $136,561$132,299$121,931$98,386
Debt securities 6,945  6,799 8,034 7,870 3,497
Restricted equity securities 1,333  1,310 1,673 1,255 766
Short-term investments 1,093  2,390 3,351 1,495 754
Total interest and dividend income 152,319  147,060 145,357 132,551 103,403
Interest expense:     
Deposits 54,034  49,116 43,147 29,368 14,185
Borrowed funds 14,730  13,874 16,173 17,134 9,188
Total interest expense 68,764  62,990 59,320 46,502 23,373
Net interest income 83,555  84,070 86,037 86,049 80,030
Provision for credit losses on loans 3,851  2,947 5,726 25,344 5,671
(Credit) provision for credit losses on investments (76) 84 133 198 54
Net interest income after provision for credit losses 79,780  81,039 80,178 60,507 74,305
Non-interest income:     
Deposit fees 3,064  3,024 2,866 2,657 2,916
Loan fees 515  639 491 391 446
Loan level derivative income, net 778  376 363 2,373 670
Gain on investment securities, net —  — 3 1,701 321
Gain on sales of loans and leases 410  225 308 1,638 2,612
Other 3,260  1,244 1,431 4,177 2,091
Total non-interest income 8,027  5,508 5,462 12,937 9,056
Non-interest expense:     
Compensation and employee benefits 35,401  33,491 33,438 36,565 29,525
Occupancy 5,127  4,983 4,870 5,223 4,005
Equipment and data processing 7,245  6,766 6,531 6,462 5,758
Professional services 1,442  2,368 1,986 1,430 1,546
FDIC insurance 1,839  2,152 2,609 1,244 1,001
Advertising and marketing 758  1,174 1,382 1,410 1,052
Amortization of identified intangible assets 1,965  1,955 1,954 1,966 120
Merger and acquisition expense —  — 1,002 6,409 641
Other 5,467  4,790 4,053 4,067 3,577
Total non-interest expense 59,244  57,679 57,825 64,776 47,225
Income before provision for income taxes 28,563  28,868 27,815 8,668 36,136
Provision for income taxes 5,675  6,167 5,965 1,108 6,441
Net income$22,888 $22,701$21,850$7,560$29,695
Earnings per common share:     
Basic$0.26 $0.26$0.25$0.09$0.39
Diluted$0.26 $0.26$0.25$0.09$0.39
Weighted average common shares outstanding during the period:    
Basic 88,867,159  88,795,270 88,665,135 86,563,641 76,841,655
Diluted 89,035,505  88,971,210 88,926,543 86,837,806 77,065,076
Dividends paid per common share$0.135 $0.135$0.135$0.135$0.135
      



BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
  
 Twelve Months Ended December 31,
  2023 2022
 (In Thousands Except Share Data)
Interest and dividend income:  
Loans and leases$533,739$328,769
Debt securities 29,648 13,079
Restricted equity securities 5,571 1,898
Short-term investments 8,329 1,440
Total interest and dividend income 577,287 345,186
Interest expense:  
Deposits 175,665 29,592
Borrowed funds 61,911 15,823
Total interest expense 237,576 45,415
Net interest income 339,711 299,771
Provision for credit losses on loans 37,868 8,525
Provision for credit losses on investments 339 102
Net interest income after provision for credit losses 301,504 291,144
Non-interest income:  
Deposit fees 11,611 10,919
Loan fees 2,036 2,208
Loan level derivative income, net 3,890 4,246
Gain on investment securities, net 1,704 321
Gain on sales of loans and leases 2,581 4,136
Other 10,112 6,517
Total non-interest income 31,934 28,347
Non-interest expense:  
Compensation and employee benefits 138,895 113,487
Occupancy 20,203 16,002
Equipment and data processing 27,004 20,833
Professional services 7,226 5,060
FDIC insurance 7,844 3,177
Advertising and marketing 4,724 4,980
Amortization of identified intangible assets 7,840 494
Merger and acquisition expense 7,411 2,249
Other 18,377 13,260
Total non-interest expense 239,524 179,542
Income before provision for income taxes 93,914 139,949
Provision for income taxes 18,915 30,205
Net income$74,999$109,744
Earnings per common share:  
Basic$0.85$1.42
Diluted$0.85$1.42
Weighted average common shares outstanding during the period: 
Basic 88,230,681 77,079,278
Diluted 88,450,646 77,351,834
Dividends paid per common share$0.540$0.520
   



BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Asset Quality Analysis (Unaudited)
 At and for the Three Months Ended
 December 31, 2023September 30, 2023June 30, 2023March 31, 2023December 31, 2022
 (Dollars in Thousands)
NONPERFORMING ASSETS:     
Loans and leases accounted for on a nonaccrual basis:     
Commercial real estate mortgage$19,608 $23,263 $8,737 $4,589 $607 
Multi-family mortgage —  1,318  —  —  — 
Construction —  2,316  3,828  3,883  707 
Total commercial real estate loans 19,608  26,897  12,565  8,472  1,314 
      
Commercial 3,886  5,406  16,023  5,495  464 
Equipment financing 14,984  13,974  12,809  9,908  9,653 
Condominium association —  —  —  51  58 
Total commercial loans and leases 18,870  19,380  28,832  15,454  10,175 
      
Residential mortgage 4,292  4,249  4,343  3,449  2,680 
Home equity 860  713  583  1,079  723 
Other consumer —  2  —  —  2 
Total consumer loans 5,152  4,964  4,926  4,528  3,405 
      
Total nonaccrual loans and leases 43,630  51,241  46,323  28,454  14,894 
      
Other real estate owned 780  —  —  —  — 
Other repossessed assets 914  299  602  508  408 
Total nonperforming assets$45,324 $51,540 $46,925 $28,962 $15,302 
      
Loans and leases past due greater than 90 days and still accruing$228 $1,175 $490 $726 $33 
      
Nonperforming loans and leases as a percentage of total loans and leases 0.45% 0.55% 0.50% 0.31% 0.19%
Nonperforming assets as a percentage of total assets 0.40% 0.46% 0.42% 0.25% 0.17%
      
PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:   
Allowance for loan and lease losses at beginning of period$119,081 $125,817 $120,865 $98,482 $94,169 
Charge-offs (7,722) (10,978) (1,690) (845) (658)
Recoveries 581  4  593  394  348 
Net charge-offs (7,141) (10,974) (1,097) (451) (310)
Provision for loan and lease losses excluding unfunded commitments * 5,582  4,238  6,049  22,834  4,623 
Allowance for loan and lease losses at end of period$117,522 $119,081 $125,817 $120,865 $98,482 
      
Allowance for loan and lease losses as a percentage of total loans and leases 1.22% 1.27% 1.35% 1.31% 1.29%
      
NET CHARGE-OFFS:     
Commercial real estate loans$1,087 $(3)$(6)$(6)$(6)
Commercial loans and leases 6,061  10,958  1,108  457  320 
Consumer loans (7) 19  (5) —  (4)
Total net charge-offs$7,141 $10,974 $1,097 $451 $310 
      
Net loan and lease charge-offs as a percentage of average loans and leases (annualized) 0.30% 0.47% 0.05% 0.02% 0.02%
      
*Provision for loan and lease losses does not include (credit) provision of $(1.7 million), $(1.3 million), $(0.3) million, $2.5 million, and $1.0 million for credit losses on unfunded commitments during the three months ended December 31, 2023, September 30, 2023, June 30, 2023, March 31, 2023, and December 31, 2022, respectively.     
      



BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Average Yields / Costs (Unaudited)
 Three Months Ended
 December 31, 2023September 30, 2023December 31, 2022
 Average
Balance		Interest (1)Average
Yield/ Cost		Average
Balance		Interest (1)Average
Yield/ Cost		Average
Balance		Interest (1)Average
Yield/ Cost
 (Dollars in Thousands)
Assets:         
Interest-earning assets:         
Investments:         
Debt securities (2)$876,350$6,9863.19%$887,612$6,8403.08%$665,969$3,4972.10%
Restricted equity securities (2) 67,567 1,3347.90% 67,824 1,3107.73% 52,093 7665.88%
Short-term investments 85,790 1,0935.09% 172,483 2,3905.54% 60,385 7545.00%
Total investments 1,029,707 9,4133.66% 1,127,919 10,5403.74% 778,447 5,0172.58%
Loans and Leases:         
Commercial real estate loans (3) 5,727,930 81,6535.58% 5,667,373 78,7505.44% 4,341,929 53,0884.78%
Commercial loans (3) 969,603 16,2966.58% 939,492 15,2956.38% 797,312 10,5415.18%
Equipment financing (3) 1,347,589 25,2117.48% 1,280,033 23,3317.29% 1,200,911 20,8166.93%
Consumer loans (3) 1,475,580 19,8885.37% 1,471,985 19,2375.21% 1,225,056 13,9914.55%
Total loans and leases 9,520,702 143,0486.01% 9,358,883 136,6135.84% 7,565,208 98,4365.20%
Total interest-earning assets 10,550,409 152,4615.78% 10,486,802 147,1535.61% 8,343,655 103,4534.96%
Non-interest-earning assets 721,532   693,833   513,976  
Total assets$11,271,941  $11,180,635  $8,857,631  
          
Liabilities and Stockholders' Equity:         
Interest-bearing liabilities:         
Deposits:         
NOW accounts$657,134 1,1460.69%$681,929 1,1590.67%$583,499 2570.18%
Savings accounts 1,658,144 10,6842.56% 1,557,911 8,8592.26% 787,021 1,1550.58%
Money market accounts 2,140,225 16,2393.01% 2,177,528 15,7852.88% 2,282,217 7,7111.34%
Certificates of deposit 1,530,772 14,5173.76% 1,444,269 12,1283.33% 922,250 2,8651.23%
Brokered deposit accounts 880,604 11,4485.16% 882,351 11,1855.03% 218,188 2,1973.99%
Total interest-bearing deposits 6,866,879 54,0343.12% 6,743,988 49,1162.89% 4,793,175 14,1851.17%
Borrowings:         
Advances from the FHLBB 965,846 11,9434.84% 954,989 11,7064.80% 736,652 6,9793.71%
Subordinated debentures and notes 84,170 1,3816.56% 84,134 1,3786.55% 84,025 1,3326.34%
Other borrowed funds 136,566 1,4064.09% 117,531 7902.67% 148,195 8772.35%
Total borrowings 1,186,582 14,7304.86% 1,156,654 13,8744.69% 968,872 9,1883.71%
Total interest-bearing liabilities 8,053,461 68,7643.39% 7,900,642 62,9903.16% 5,762,047 23,3731.61%
Non-interest-bearing liabilities:         
Demand checking accounts 1,723,849   1,794,225   1,843,780  
Other non-interest-bearing liabilities 323,855   318,041   269,498  
Total liabilities 10,101,165   10,012,908   7,875,325  
Stockholders’ equity 1,170,776   1,167,727   982,306  
Total liabilities and equity$11,271,941  $11,180,635  $8,857,631  
Net interest income (tax-equivalent basis) /Interest-rate spread (4)  83,6972.39%  84,1632.45%  80,0803.35%
Less adjustment of tax-exempt income  142   93   50 
Net interest income $83,555  $84,070  $80,030 
Net interest margin (5)  3.15%  3.18%  3.81%
          
(1) Tax-exempt income on debt securities, equity securities and revenue bonds included in commercial real estate loans is included on a tax-equivalent basis.
(2) Average balances include unrealized gains (losses) on investment securities. Dividend payments may not be consistent and average yield on equity securities may vary from month to month.
(3) Loans on nonaccrual status are included in the average balances.
(4) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
(5) Net interest margin represents net interest income (tax-equivalent basis) divided by average interest-earning assets.
          



BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Average Yields / Costs (Unaudited)
 Twelve Months Ended
 December 31, 2023December 31, 2022
 Average
Balance		Interest (1)Average
Yield/ Cost		Average
Balance		Interest (1)Average
Yield/ Cost
 (Dollars in Thousands)
Assets:      
Interest-earning assets:      
Investments:      
Debt securities (2)$947,782$29,8913.15%$706,580$13,0791.85%
Restricted equity securities (2) 72,264 5,5727.71% 36,813 1,8985.15%
Short-term investments 158,718 8,3295.25% 104,288 1,4401.38%
Total investments 1,178,764 43,7923.72% 847,681 16,4171.94%
Loans and Leases:      
Commercial real estate loans (3) 5,654,385 307,6525.37% 4,238,960 172,8114.02%
Commercial loans (3) 929,077 59,1106.28% 744,972 34,1054.52%
Equipment financing (3) 1,277,224 92,1127.21% 1,148,673 75,7676.60%
Consumer loans (3) 1,470,677 75,0985.10% 1,199,804 46,2953.86%
Total loans and leases 9,331,363 533,9725.72% 7,332,409 328,9784.49%
Total interest-earning assets 10,510,127 577,7645.50% 8,180,090 345,3954.22%
Non-interest-earning assets 704,244   443,313  
Total assets$11,214,371  $8,623,403  
       
Liabilities and Stockholders' Equity:      
Interest-bearing liabilities:      
Deposits:      
NOW accounts$720,572 4,2750.59%$598,267 8530.14%
Savings accounts 1,439,293 27,9741.94% 882,881 2,2280.25%
Money market accounts 2,205,430 58,1532.64% 2,387,670 15,3920.64%
Certificates of deposit 1,428,727 44,1223.09% 998,580 8,2100.82%
Brokered deposit accounts 819,419 41,1415.02% 146,038 2,9091.99%
Total interest-bearing deposits 6,613,441 175,6652.66% 5,013,436 29,5920.59%
Borrowings:      
Advances from the FHLBB 1,092,996 52,4674.73% 340,569 9,3552.71%
Subordinated debentures and notes 84,116 5,4766.51% 83,971 5,1336.11%
Other borrowed funds 124,793 3,9683.18% 118,383 1,3351.13%
Total borrowings 1,301,905 61,9114.69% 542,923 15,8232.87%
Total interest-bearing liabilities 7,915,346 237,5763.00% 5,556,359 45,4150.82%
Non-interest-bearing liabilities:      
Demand checking accounts 1,823,759   1,879,620  
Other non-interest-bearing liabilities 307,160   203,187  
Total liabilities 10,046,265   7,639,166  
Stockholders’ equity 1,168,106   984,237  
Total liabilities and equity$11,214,371  $8,623,403  
Net interest income (tax-equivalent basis) /Interest-rate spread (4)  340,1882.50%  299,9803.40%
Less adjustment of tax-exempt income  477   209 
Net interest income $339,711  $299,771 
Net interest margin (5)  3.24%  3.67%
       
(1) Tax-exempt income on debt securities, equity securities and revenue bonds included in commercial real estate loans is included on a tax-equivalent basis.
(2) Average balances include unrealized gains (losses) on investment securities. Dividend payments may not be consistent and average yield on equity securities may vary from month to month.
(3) Loans on nonaccrual status are included in the average balances.
(4) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
(5) Net interest margin represents net interest income (tax-equivalent basis) divided by average interest-earning assets.
       



BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Non-GAAP Financial Information (Unaudited)
   At and for the Three Months Ended
December 31,		At and for the Twelve Months Ended
December 31,
     2023  2022  2023  2022 
Reconciliation Table - Non-GAAP Financial Information (Dollars in Thousands Except Share Data)
       
Reported Pretax Income  $28,563 $36,136 $93,914 $139,949 
Less:       
Security gains —  321  1,704  321 
Add:       
Day 1 PCSB CECL provision    —  —  16,744  — 
Merger and acquisition expenses  —  641  7,411  2,249 
Operating Pretax income $28,563 $36,456 $116,365 $141,877 
Effective tax rate  19.9% 17.8% 20.1% 21.6%
Provision for income tax  5,675  6,498  23,437  30,622 
Operating earnings   $22,888 $29,958 $92,928 $111,255 
        
Operating earnings per common share:      
Basic   $0.26 $0.39 $1.05 $1.44 
Diluted   $0.26 $0.39 $1.05 $1.44 
        
Weighted average common shares outstanding during the period:     
Basic    88,867,159  76,841,655  88,230,681  77,079,278 
Diluted    89,035,505  77,065,076  88,450,646  77,351,834 
        
        
Return on average assets *   0.81% 1.34% 0.67% 1.27%
Less:       
Security gains (after-tax) *   —% 0.01% 0.01% —%
Add:       
Day 1 PCSB CECL provision (after-tax) *  —% —% 0.12% —%
Merger and acquisition expenses (after-tax) *  —% 0.02% 0.05% 0.02%
Operating return on average assets *   0.81% 1.35% 0.83% 1.29%
        
        
Return on average tangible assets *   0.83% 1.37% 0.69% 1.30%
Less:       
Security gains (after-tax) *   —% 0.01% 0.01% —%
Add:       
Day 1 PCSB CECL provision (after-tax) *  —% —% 0.12% —%
Merger and acquisition expenses (after-tax) *  —% 0.02% 0.05% 0.02%
Operating return on average tangible assets *   0.83% 1.38% 0.85% 1.32%
        
        
Return on average stockholders' equity *   7.82% 12.09% 6.42% 11.15%
Less:       
Security gains (after-tax) *   —% 0.11% 0.12% 0.03%
Add:       
Day 1 PCSB CECL provision (after-tax) *  —% —% 1.14% —%
Merger and acquisition expenses (after-tax) *  —% 0.21% 0.51% 0.18%
Operating return on average stockholders' equity *  7.82% 12.19% 7.95% 11.30%
        
        
Return on average tangible stockholders' equity *  10.12% 14.48% 8.36% 13.35%
Less:       
Security gains (after-tax) *   —% 0.13% 0.15% 0.03%
Add:       
Day 1 PCSB CECL provision (after-tax) *  —% —% 1.49% —%
Merger and acquisition expenses (after-tax) *  —% 0.26% 0.66% 0.21%
Operating return on average tangible stockholders' equity *  10.12% 14.61% 10.36% 13.53%
* Ratios at and for the three months ended are annualized.     
        
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Non-GAAP Financial Information (Unaudited)
 At and for the Three Months EndedAt and for the Twelve
Months Ended
 December 31, 2023September 30, 2023June 30, 2023March 31, 2023December 31, 2022December 31, 2023December 31, 2022
 (Dollars in Thousands)
        
Net income, as reported$22,888 $22,701 $21,850 $7,560 $29,695 $74,999 $109,744 
        
Average total assets$11,271,941 $11,180,635 $11,272,672 $11,131,087 $8,857,631 $11,214,371 $8,623,403 
Less: Average goodwill and average identified intangible assets, net 266,225  268,199  270,147  278,135  162,266  270,637  162,447 
Average tangible assets$11,005,716 $10,912,436 $11,002,525 $10,852,952 $8,695,365 $10,943,734 $8,460,956 
        
Return on average tangible assets (annualized) 0.83 % 0.83 % 0.79 % 0.28 % 1.37 % 0.69 % 1.30 %
        
Average total stockholders’ equity$1,170,776 $1,167,727 $1,174,167 $1,159,635 $982,306 $1,168,106 $984,237 
Less: Average goodwill and average identified intangible assets, net 266,225  268,199  270,147  278,135  162,266  270,637  162,447 
Average tangible stockholders’ equity$904,551 $899,528 $904,020 $881,500 $820,040 $897,469 $821,790 
        
Return on average tangible stockholders’ equity (annualized) 10.12 % 10.09 % 9.67 % 3.43 % 14.48 % 8.36 % 13.35 %
        
Total stockholders’ equity$1,198,644 $1,157,871 $1,162,308 $1,165,066 $992,125 $1,198,644 $992,125 
Less:       
Goodwill 241,222  241,222  241,222  241,222  160,427  241,222  160,427 
Identified intangible assets, net 24,207  26,172  28,126  30,080  1,781  24,207  1,781 
Tangible stockholders' equity$933,215 $890,477 $892,960 $893,764 $829,917 $933,215 $829,917 
        
Total assets$11,382,256 $11,180,555 $11,206,078 $11,522,485 $9,185,836 $11,382,256 $9,185,836 
Less:       
Goodwill 241,222  241,222  241,222  241,222  160,427  241,222  160,427 
Identified intangible assets, net 24,207  26,172  28,126  30,080  1,781  24,207  1,781 
Tangible assets$11,116,827 $10,913,161 $10,936,730 $11,251,183 $9,023,628 $11,116,827 $9,023,628 
        
Tangible stockholders’ equity to tangible assets 8.39 % 8.16 % 8.16 % 7.94 % 9.20 % 8.39 % 9.20 %
        
Tangible stockholders' equity$933,215 $890,477 $892,960 $893,764 $829,917 $933,215 $829,917 
        
Number of common shares issued 96,998,075  96,998,075  96,998,075  96,998,075  85,177,172  96,998,075  85,177,172 
Less:       
Treasury shares 7,354,399  7,350,981  7,734,891  7,734,891  7,731,445  7,354,399  7,731,445 
Unvested restricted shares 749,099  780,859  598,049  598,049  601,495  749,099  601,495 
Number of common shares outstanding 88,894,577  88,866,235  88,665,135  88,665,135  76,844,232  88,894,577  76,844,232 
        
Tangible book value per common share$ 10.50 $ 10.02 $ 10.07 $ 10.08 $ 10.80 $ 10.50 $ 10.80 
        

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Source: Brookline Bancorp, Inc.

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