Brookline Bancorp Announces Fourth Quarter Results

Net Income of $17.5 million, EPS of $0.20 Operating Earnings of $20.7 million, Operating EPS of $0.23 Quarterly Dividend of $0.135 BOSTON, Jan. 29, 2025 (GLOBE NEWSWIRE) -- Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced net income of $17.5 million, or $0.20 per basic and diluted share, and excluding $3.4 million of merger-related charges, operating earnings after tax (non-GAAP) of $20.7 million, or $0.23 per basic and diluted share for the fourth quarter of 2024, compared to net income and operating earnings after tax (non-GAAP) of $20.1 million, or $0.23 per basic and diluted share, for the third quarter of 2024, and $22.9 million, or $0.26 per basic and diluted share, for the fourth quarter of 2023. For the year ended December 31, 2024, the Company reported net income of $68.7 million, or $0.77 per basic and diluted share, compared to $75.0 million, or $0.85 per basic and diluted share, for the year ended December 31, 2023. For the year ended December 31, 2024, the Company reported operating earnings after tax (non-GAAP) of $72.4 million, or $0.81 per basic and diluted share, compared to $92.9 million, or $1.05 per basic and diluted share, for the year ended December 31, 2023. Paul Perrault, Chairman and Chief Executive Officer, commented on the Company’s performance, “Brookline Bancorp had an excellent year in 2024. We finished the year with solid deposit and loan growth and are well positioned as we look forward to 2025. We are looking forward to 2025 and our recently announced strategic merger with Berkshire Hills Bancorp. I would like to recognize the contributions of our employees in contributing to our growth and success in 2024. Our employees exemplify the Brookline Bancorp culture of providing excellent customer service.” BALANCE SHEET Total assets at December 31, 2024 increased $228.6 million to $11.9 billion from $11.7 billion at September 30, 2024, and increased $523.1 million from $11.4 billion at December 31, 2023. At December 31, 2024, total loans and leases were $9.8 billion, representing an increase of $24.1 million from September 30, 2024, and an increase of $137.7 million from December 31, 2023. Total investment securities at December 31, 2024 increased $39.6 million to $895.0 million from $855.4 million at September 30, 2024, and decreased $21.6 million from $916.6 million at December 31, 2023. Total cash and cash equivalents at December 31, 2024 increased $135.8 million to $543.7 million from $407.9 million at September 30, 2024, and increased $410.6 million from $133.0 million at December 31, 2023. As of December 31, 2024, total investment securities and total cash and cash equivalents represented 12.1 percent of total assets, compared to 10.8 percent and 9.2 percent as of September 30, 2024 and December 31, 2023, respectively. Total deposits at December 31, 2024 increased $169.4 million to $8.9 billion from $8.7 billion at September 30, 2024, consisting of a $115.9 million increase in customer deposits and a $53.4 million increase in brokered deposits. Total deposits increased $353.5 million from $8.5 billion at December 31, 2023, primarily driven by growth in customer deposits. Total borrowed funds at December 31, 2024 increased $22.3 million to $1.5 billion from September 30, 2024, and increased $143.2 million from $1.4 billion at December 31, 2023. The ratio of stockholders’ equity to total assets was 10.26 percent at December 31, 2024, as compared to 10.54 percent at September 30, 2024, and 10.53 percent at December 31, 2023. The ratio of tangible stockholders’ equity to tangible assets (non-GAAP) was 8.27 percent at December 31, 2024, as compared to 8.50 percent at September 30, 2024, and 8.39 percent at December 31, 2023. Tangible book value per common share (non-GAAP) decreased $0.08 from $10.89 at September 30, 2024 to $10.81 at December 31, 2024, and increased $0.31 from $10.50 at December 31, 2023. NET INTEREST INCOME Net interest income increased $2.0 million to $85.0 million during the fourth quarter of 2024 from $83.0 million for the quarter ended September 30, 2024. The net interest margin increased 5 basis points to 3.12 percent for the three months ended December 31, 2024 from 3.07 percent for the three months ended September 30, 2024, primarily driven by lower funding costs partially offset by lower yields on loans and leases. NON-INTEREST INCOME Total non-interest income for the quarter ended December 31, 2024 increased $0.2 million to $6.6 million from $6.3 million for the quarter ended September 30, 2024. The increase was primarily driven by an increase of $1.1 million in loan level derivative income, net, partially offset by a decline of $0.8 million in mark to market on interest rate swaps. PROVISION FOR CREDIT LOSSES The Company recorded a provision for credit losses of $4.1 million for the quarter ended December 31, 2024, compared to $4.8 million for the quarter ended September 30, 2024. The decrease in the provision was largely driven by improving economic forecasts and stabilization in the volume of adversely graded credits. Total net charge-offs for the fourth quarter of 2024 were $7.3 million, compared to $3.8 million in the third quarter of 2024. The $7.3 million in net charge-offs was driven by one large $5.1 million charge-off in equipment financing which was previously reserved for. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis increased to 30 basis points for the fourth quarter of 2024 from 16 basis points for the third quarter of 2024. The allowance for loan and lease losses represented 1.28 percent of total loans and leases at December 31, 2024, compared to 1.31 percent at September 30, 2024, and 1.22 percent at December 31, 2023. The decrease in the ratio was driven by a reduction in specific reserves due to charge-offs in the quarter. ASSET QUALITY The ratio of total nonperforming loans and leases to total loans and leases was 0.71 percent at December 31, 2024 as compared to 0.73 percent at September 30, 2024. Total nonaccrual loans and leases decreased $1.9 million to $69.3 million at December 31, 2024 from $71.2 million at September 30, 2024. The ratio of nonperforming assets to total assets was 0.59 percent at December 31, 2024 as compared to 0.62 percent at September 30, 2024. Total nonperforming assets decreased $2.4 million to $70.5 million at December 31, 2024 from $72.8 million at September 30, 2024. NON-INTEREST EXPENSE Non-interest expense for the quarter ended December 31, 2024 increased $5.8 million to $63.7 million from $57.9 million for the quarter ended September 30, 2024. The increase was primarily driven by an increase of $3.4 million in merger and acquisition expense, and an increase of $2.1 million in compensation and employee benefits expense. PROVISION FOR INCOME TAXES The effective tax rate was 26.4 percent and 25.1 percent for the three and twelve months ended December 31, 2024 compared to 24.7 percent for the three months ended September 30, 2024 and 19.9 percent and 20.1 percent for the three and twelve months ended December 31, 2023. RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY The annualized return on average assets decreased to 0.61 percent during the fourth quarter of 2024 compared to 0.70 percent for the third quarter of 2024; and was 0.60 percent for the year ended December 31, 2024, compared to 0.67 percent for the year ended December 31, 2023. The annualized return on average tangible stockholders' equity (non-GAAP) decreased to 7.21 percent during the fourth quarter of 2024 compared to 8.44 percent for the third quarter of 2024; and was 7.24 percent for the year ended December 31, 2024 compared to 8.36 percent for the year ended December 31, 2023. DIVIDEND DECLARED The Company’s Board of Directors approved a dividend of $0.135 per share for the quarter ended December 31, 2024. The dividend will be paid on February 28, 2025 to stockholders of record on February 14, 2025. PROPOSED TRANSACTION WITH BERKSHIRE HILLS BANCORP, INC. On December 16, 2024, the Company, Berkshire Hills Bancorp, Inc. (“Berkshire”), and Commerce Acquisition Sub, Inc., a Delaware corporation and wholly-owned subsidiary of the Berkshire formed solely to facilitate the merger (“Merger Sub”), entered into an Agreement and Plan of Merger (the “Merger Agreement”). The Merger Agreement provides that, upon the terms and subject to the conditions set forth therein, Merger Sub will merge with and into Brookline, with Brookline as the surviving entity, and immediately thereafter, Brookline will merge with and into Berkshire, with Berkshire as the surviving entity (collectively, the “Merger”). As a result of the Merger, the separate corporate existence of the Company will cease, and Berkshire will continue as the surviving corporation. Under the terms of the Merger Agreement, which was unanimously approved by the Boards of Directors of both companies, each outstanding share of Company common stock will be exchanged for the right to receive 0.42 shares of Berkshire common stock. Holders of Company common stock will receive cash in lieu of fractional shares of Berkshire common stock. As a result of the proposed transaction and a $100 million common stock offering by Berkshire to support the proposed transaction, Berkshire stockholders will own approximately 51%, Brookline stockholders will own approximately 45%, and investors in new shares will own approximately 4% of the outstanding shares of the combined company. The proposed transaction is expected to close by the end of the second half of 2025, subject to satisfaction of customary closing conditions, including receipt of required regulatory approvals and approvals from Berkshire and the Company stockholders. CONFERENCE CALL The Company will conduct a conference call/webcast at 1:30 PM Eastern Time on Thursday, January 30, 2025 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/129324302. 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 138268). 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: 646121. ABOUT BROOKLINE BANCORP, INC. Brookline Bancorp, Inc., a bank holding company with approximately $11.9 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, the occurrence of any event, change or other circumstances that could give rise to the right of the Company or Berkshire to terminate the merger agreement; the outcome of any legal proceedings that may be instituted against Berkshire or Company; delays in completing the proposed transaction with Berkshire; the failure to obtain necessary regulatory approvals (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the proposed transaction) or stockholder approvals, or to satisfy any of the other conditions to the proposed transaction on a timely basis or at all, including the ability of Berkshire and the Company to meet expectations regarding the timing, completion and accounting and tax treatments of the proposed transaction; the impact of certain restrictions during the pendency of the proposed transaction on the parties’ ability to pursue certain business opportunities and strategic transactions; diversion of management’s attention from ongoing business operations and opportunities; potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the proposed transaction; 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. CarlsonBrookline Bancorp, Inc.Co-President and Chief Financial and Strategy Officer(617) 425-5331carl.carlson@brkl.com BROOKLINE BANCORP, INC. AND SUBSIDIARIESSelected Financial Highlights (Unaudited) At and for the Three Months EndedAt and for the Twelve Months Ended December 31, 2024September 30, 2024June 30, 2024March 31, 2024December 31, 2023December 31, 2024December 31, 2023 (Dollars In Thousands Except per Share Data)Earnings Data: Net interest income$84,988 $83,008 $80,001 $81,588 $83,555 $329,585 $339,711 Provision for credit losses on loans 4,141 4,832 5,607 7,423 3,851 22,003 37,868 Provision (credit) for credit losses on investments (104) (172) (39) (44) (76) (359) 339 Non-interest income 6,587 6,348 6,396 6,284 8,027 25,615 31,934 Non-interest expense 63,719 57,948 59,184 61,014 59,244 241,865 239,524 Income before provision for income taxes 23,819 26,748 21,645 19,479 28,563 91,691 93,914 Net income 17,536 20,142 16,372 14,665 22,888 68,715 74,999 Performance Ratios: Net interest margin (1) 3.12% 3.07% 3.00% 3.06% 3.15% 3.06% 3.24%Interest-rate spread (1) 2.35% 2.26% 2.14% 2.21% 2.39% 2.24% 2.50%Return on average assets (annualized) 0.61% 0.70% 0.57% 0.51% 0.81% 0.60% 0.67%Return on average tangible assets (annualized) (non-GAAP) 0.62% 0.72% 0.59% 0.53% 0.83% 0.61% 0.69%Return on average stockholders' equity (annualized) 5.69% 6.63% 5.49% 4.88% 7.82% 5.67% 6.42%Return on average tangible stockholders' equity (annualized) (non-GAAP) 7.21% 8.44% 7.04% 6.26% 10.12% 7.24% 8.36%Efficiency ratio (2) 69.58% 64.85% 68.50% 69.44% 64.69% 68.09% 64.45% Per Common Share Data: Net income — Basic$0.20 $0.23 $0.18 $0.16 $0.26 $0.77 $0.85 Net income — Diluted 0.20 0.23 0.18 0.16 0.26 0.77 0.85 Cash dividends declared 0.135 0.135 0.135 0.135 0.135 0.540 0.540 Book value per share (end of period) 13.71 13.81 13.48 13.43 13.48 13.71 13.48 Tangible book value per common share (end of period) (non-GAAP) 10.81 10.89 10.53 10.47 10.50 10.81 10.50 Stock price (end of period) 11.80 10.09 8.35 9.96 10.91 11.80 10.91 Balance Sheet: Total assets$11,905,326 $11,676,721 $11,635,292 $11,542,731 $11,382,256 $11,905,326 $11,382,256 Total loans and leases 9,779,288 9,755,236 9,721,137 9,655,086 9,641,589 9,779,288 9,641,589 Total deposits 8,901,644 8,732,271 8,737,036 8,718,653 8,548,125 8,901,644 8,548,125 Total stockholders’ equity 1,221,939 1,230,362 1,198,480 1,194,231 1,198,644 1,221,939 1,198,644 Asset Quality: Nonperforming assets$70,452 $72,821 $62,683 $42,489 $45,324 $70,452 $45,324 Nonperforming assets as a percentage of total assets 0.59% 0.62% 0.54% 0.37% 0.40% 0.59% 0.40%Allowance for loan and lease losses$125,083 $127,316 $121,750 $120,124 $117,522 $125,083 $117,522 Allowance for loan and lease losses as a percentage of total loans and leases 1.28% 1.31% 1.25% 1.24% 1.22% 1.28% 1.22%Net loan and lease charge-offs$7,252 $3,808 $8,387 $8,781 $7,141 $28,228 $19,663 Net loan and lease charge-offs as a percentage of average loans and leases (annualized) 0.30% 0.16% 0.35% 0.36% 0.30% 0.29% 0.21% Capital Ratios: Stockholders’ equity to total assets 10.26% 10.54% 10.30% 10.35% 10.53% 10.26% 10.53%Tangible stockholders’ equity to tangible assets (non-GAAP) 8.27% 8.50% 8.23% 8.25% 8.39% 8.27% 8.39% (1) Calculated on a fully tax-equivalent basis.(2) Calculated as non-interest expense as a percentage of net interest income plus non-interest income. BROOKLINE BANCORP, INC. AND SUBSIDIARIESConsolidated Balance Sheets (Unaudited) December 31, 2024September 30, 2024June 30, 2024March 31, 2024December 31, 2023ASSETS(In Thousands Except Share Data)Cash and due from banks$64,673 $82,168 $60,067 $45,708 $34,514 Short-term investments 478,997 325,721 283,017 256,178 98,513 Total cash and cash equivalents 543,670 407,889 343,084 301,886 133,027 Investment securities available-for-sale 895,034 855,391 856,439 865,798 916,601 Total investment securities 895,034 855,391 856,439 865,798 916,601 Allowance for investment security losses (82) (186) (359) (398) (441)Net investment securities 894,952 855,205 856,080 865,400 916,160 Loans and leases held-for-sale — — — 6,717 — Loans and leases: Commercial real estate loans 5,716,114 5,779,290 5,782,111 5,755,239 5,764,529 Commercial loans and leases 2,506,664 2,453,038 2,443,530 2,416,904 2,399,668 Consumer loans 1,556,510 1,522,908 1,495,496 1,482,943 1,477,392 Total loans and leases 9,779,288 9,755,236 9,721,137 9,655,086 9,641,589 Allowance for loan and lease losses (125,083) (127,316) (121,750) (120,124) (117,522)Net loans and leases 9,654,205 9,627,920 9,599,387 9,534,962 9,524,067 Restricted equity securities 83,155 82,675 78,963 74,709 77,595 Premises and equipment, net of accumulated depreciation 86,781 86,925 88,378 89,707 89,853 Right-of-use asset operating leases 43,527 41,934 35,691 33,133 30,863 Deferred tax asset 56,620 50,827 60,032 60,484 56,952 Goodwill 241,222 241,222 241,222 241,222 241,222 Identified intangible assets, net of accumulated amortization 17,461 19,162 20,830 22,499 24,207 Other real estate owned and repossessed assets 1,103 1,579 1,974 1,817 1,694 Other assets 282,630 261,383 309,651 310,195 286,616 Total assets$11,905,326 $11,676,721 $11,635,292 $11,542,731 $11,382,256 LIABILITIES AND STOCKHOLDERS' EQUITY Deposits: Demand checking accounts$1,692,394 $1,681,858 $1,638,378 $1,629,371 $1,678,406 NOW accounts 617,246 637,374 647,370 654,748 661,863 Savings accounts 1,721,247 1,736,989 1,735,857 1,727,893 1,669,018 Money market accounts 2,116,360 2,041,185 2,073,557 2,065,569 2,082,810 Certificate of deposit accounts 1,885,444 1,819,353 1,718,414 1,670,147 1,574,855 Brokered deposit accounts 868,953 815,512 923,460 970,925 881,173 Total deposits 8,901,644 8,732,271 8,737,036 8,718,653 8,548,125 Borrowed funds: Advances from the FHLB 1,355,926 1,345,003 1,265,079 1,150,153 1,223,226 Subordinated debentures and notes 84,328 84,293 84,258 84,223 84,188 Other borrowed funds 79,592 68,251 80,125 127,505 69,256 Total borrowed funds 1,519,846 1,497,547 1,429,462 1,361,881 1,376,670 Operating lease liabilities 44,785 43,266 37,102 34,235 31,998 Mortgagors’ escrow accounts 15,875 14,456 17,117 16,245 17,239 Reserve for unfunded credits 5,981 6,859 11,400 15,807 19,767 Accrued expenses and other liabilities 195,256 151,960 204,695 201,679 189,813 Total liabilities 10,683,387 10,446,359 10,436,812 10,348,500 10,183,612 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 902,584 901,562 904,775 903,726 902,659 Retained earnings 458,943 453,555 445,560 441,285 438,722 Accumulated other comprehensive income (52,882) (38,081) (61,693) (60,841) (52,798)Treasury stock, at cost; 7,019,384 shares, 7,015,843 shares, 7,373,009 shares, 7,354,399 shares, and 7,354,399 shares, respectively (87,676) (87,644) (91,132) (90,909) (90,909)Total stockholders' equity 1,221,939 1,230,362 1,198,480 1,194,231 1,198,644 Total liabilities and stockholders' equity$11,905,326 $11,676,721 $11,635,292 $11,542,731 $11,382,256 BROOKLINE BANCORP, INC. AND SUBSIDIARIESConsolidated Statements of Income (Unaudited) Three Months Ended December 31,2024September 30, 2024June 30,2024March 31, 2024December 31, 2023 (In Thousands Except Share Data)Interest and dividend income: Loans and leases$147,436 $149,643 $145,585 $145,265 $142,948 Debt securities 6,421 6,473 6,480 6,878 6,945 Restricted equity securities 1,460 1,458 1,376 1,492 1,333 Short-term investments 2,830 1,986 1,914 1,824 1,093 Total interest and dividend income 158,147 159,560 155,355 155,459 152,319 Interest expense: Deposits 56,562 59,796 59,721 56,884 54,034 Borrowed funds 16,597 16,756 15,633 16,987 14,730 Total interest expense 73,159 76,552 75,354 73,871 68,764 Net interest income 84,988 83,008 80,001 81,588 83,555 Provision for credit losses on loans 4,141 4,832 5,607 7,423 3,851 Credit for credit losses on investments (104) (172) (39) (44) (76)Net interest income after provision for credit losses 80,951 78,348 74,433 74,209 79,780 Non-interest income: Deposit fees 2,297 2,353 3,001 2,897 3,064 Loan fees 439 464 702 789 515 Loan level derivative income, net 1,115 — 106 437 778 Gain on sales of loans and leases 406 415 130 — 410 Other 2,330 3,116 2,457 2,161 3,260 Total non-interest income 6,587 6,348 6,396 6,284 8,027 Non-interest expense: Compensation and employee benefits 37,202 35,130 34,762 36,629 35,401 Occupancy 5,393 5,343 5,551 5,769 5,127 Equipment and data processing 6,780 6,831 6,732 7,031 7,245 Professional services 1,345 2,143 1,745 1,900 1,442 FDIC insurance 2,017 2,118 2,025 1,884 1,839 Advertising and marketing 1,303 859 1,504 1,574 758 Amortization of identified intangible assets 1,701 1,668 1,669 1,708 1,965 Merger and restructuring expense 3,378 — 823 — — Other 4,600 3,856 4,373 4,519 5,467 Total non-interest expense 63,719 57,948 59,184 61,014 59,244 Income before provision for income taxes 23,819 26,748 21,645 19,479 28,563 Provision for income taxes 6,283 6,606 5,273 4,814 5,675 Net income$17,536 $20,142 $16,372 $14,665 $22,888 Earnings per common share: Basic$0.20 $0.23 $0.18 $0.16 $0.26 Diluted$0.20 $0.23 $0.18 $0.16 $0.26 Weighted average common shares outstanding during the period: Basic 89,098,443 89,033,463 88,904,692 88,894,577 88,867,159 Diluted 89,483,964 89,319,611 89,222,315 89,181,508 89,035,505 Dividends paid per common share$0.135 $0.135 $0.135 $0.135 $0.135 BROOKLINE BANCORP, INC. AND SUBSIDIARIESConsolidated Statements of Income (Unaudited) Twelve Months Ended December 31, 20242023 (In Thousands Except Share Data)Interest and dividend income: Loans and leases$587,929 $533,739Debt securities 26,252 29,648Restricted equity securities 5,786 5,571Short-term investments 8,554 8,329Total interest and dividend income 628,521 577,287Interest expense: Deposits 232,963 175,665Borrowed funds 65,973 61,911Total interest expense 298,936 237,576Net interest income 329,585 339,711Provision for credit losses on loans 22,003 37,868(Credit) provision for credit losses on investments (359) 339Net interest income after provision for credit losses 307,941 301,504Non-interest income: Deposit fees 10,548 11,611Loan fees 2,394 2,036Loan level derivative income, net 1,658 3,890Gain on investment securities, net — 1,704Gain on sales of loans and leases 951 2,581Other 10,064 10,112Total non-interest income 25,615 31,934Non-interest expense: Compensation and employee benefits 143,723 138,895Occupancy 22,056 20,203Equipment and data processing 27,374 27,004Professional services 7,133 7,226FDIC insurance 8,044 7,844Advertising and marketing 5,240 4,724Amortization of identified intangible assets 6,746 7,840Merger and restructuring expense 4,201 7,411Other 17,348 18,377Total non-interest expense 241,865 239,524Income before provision for income taxes 91,691 93,914Provision for income taxes 22,976 18,915Net income$68,715 $74,999Earnings per common share: Basic$0.77 $0.85Diluted$0.77 $0.85Weighted average common shares outstanding during the period: Basic 88,983,248 88,230,681Diluted 89,302,304 88,450,646Dividends paid per common share$0.540 $0.540 BROOKLINE BANCORP, INC. AND SUBSIDIARIESAsset Quality Analysis (Unaudited) At and for the Three Months Ended December 31, 2024September 30, 2024June 30,2024March 31, 2024December 31, 2023 (Dollars in Thousands)NONPERFORMING ASSETS: Loans and leases accounted for on a nonaccrual basis: Commercial real estate mortgage$11,525 $11,595 $11,659 $18,394 $19,608 Multi-family mortgage 6,596 1,751 — — — Construction — — — — — Total commercial real estate loans 18,121 13,346 11,659 18,394 19,608 Commercial 14,676 15,734 16,636 3,096 3,886 Equipment financing 31,509 37,223 27,128 13,668 14,984 Total commercial loans and leases 46,185 52,957 43,764 16,764 18,870 Residential mortgage 3,999 3,862 4,495 4,563 4,292 Home equity 1,043 1,076 790 950 860 Other consumer 1 1 1 1 — Total consumer loans 5,043 4,939 5,286 5,514 5,152 Total nonaccrual loans and leases 69,349 71,242 60,709 40,672 43,630 Other real estate owned 700 780 780 780 780 Other repossessed assets 403 799 1,194 1,037 914 Total nonperforming assets$70,452 $72,821 $62,683 $42,489 $45,324 Loans and leases past due greater than 90 days and still accruing$811 $16,091 $4,994 $363 $228 Nonperforming loans and leases as a percentage of total loans and leases 0.71% 0.73% 0.62% 0.42% 0.45%Nonperforming assets as a percentage of total assets 0.59% 0.62% 0.54% 0.37% 0.40% PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES: Allowance for loan and lease losses at beginning of period$127,316 $121,750 $120,124 $117,522 $119,081 Charge-offs (8,414) (4,183) (8,823) (5,390) (7,722)Recoveries 1,162 375 436 309 581 Net charge-offs (7,252) (3,808) (8,387) (5,081) (7,141)Provision for loan and lease losses excluding unfunded commitments * 5,019 9,374 10,013 7,683 5,582 Allowance for loan and lease losses at end of period$125,083 $127,316 $121,750 $120,124 $117,522 Allowance for loan and lease losses as a percentage of total loans and leases 1.28% 1.31% 1.25% 1.24% 1.22% NET CHARGE-OFFS: Commercial real estate loans$— $— $3,819 $606 $1,087 Commercial loans and leases ** 7,257 3,797 4,571 8,179 6,061 Consumer loans (5) 11 (3) (4) (7)Total net charge-offs$7,252 $3,808 $8,387 $8,781 $7,141 Net loan and lease charge-offs as a percentage of average loans and leases (annualized) 0.30% 0.16% 0.35% 0.36% 0.30% *Provision for loan and lease losses does not include (credit) provision of $(0.9 million), $(4.5 million), $(4.4 million), $(0.3 million), and $(1.7 million) for credit losses on unfunded commitments during the three months ended December 31, 2024, September 30, 2024, June 30, 2024, March 31, 2024, and December 31, 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 SUBSIDIARIESAverage Yields / Costs (Unaudited) Three Months Ended December 31, 2024September 30, 2024December 31, 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)$856,065$6,4633.02%$853,924$6,5163.05%$876,350$6,9863.19%Restricted equity securities (2) 75,879 1,4597.69% 75,225 1,4597.76% 67,567 1,3347.90%Short-term investments 236,784 2,8304.78% 145,838 1,9865.44% 85,790 1,0935.09%Total investments 1,168,728 10,7523.68% 1,074,987 9,9613.71% 1,029,707 9,4133.66%Loans and Leases: Commercial real estate loans (3) 5,752,591 81,1955.52% 5,772,456 83,4125.65% 5,727,930 81,6535.58%Commercial loans (3) 1,170,295 19,7506.61% 1,079,084 18,4406.69% 969,603 16,2966.58%Equipment financing (3) 1,310,143 26,2958.03% 1,353,649 26,8847.94% 1,347,589 25,2117.48%Consumer loans (3) 1,529,654 20,8815.44% 1,505,095 21,1235.60% 1,475,580 19,8885.37%Total loans and leases 9,762,683 148,1216.07% 9,710,284 149,8596.17% 9,520,702 143,0486.01%Total interest-earning assets 10,931,411 158,8735.81% 10,785,271 159,8205.93% 10,550,409 152,4615.78%Non-interest-earning assets 649,161 666,067 721,532 Total assets$11,580,572 $11,451,338 $11,271,941 Liabilities and Stockholders' Equity: Interest-bearing liabilities: Deposits: NOW accounts$630,408 1,0560.67%$639,561 1,1150.69%$657,134 1,1460.69%Savings accounts 1,741,355 10,8962.49% 1,738,756 12,0982.77% 1,658,144 10,6842.56%Money market accounts 2,083,033 13,8562.65% 2,038,048 15,4663.02% 2,140,225 16,2393.01%Certificates of deposit 1,857,483 20,6914.43% 1,768,026 20,0544.51% 1,530,772 14,5173.76%Brokered deposit accounts 797,910 10,0635.02% 841,067 11,0635.23% 880,604 11,4485.16%Total interest-bearing deposits 7,110,189 56,5623.16% 7,025,458 59,7963.39% 6,866,879 54,0343.12%Borrowings: Advances from the FHLB 1,144,157 13,9584.77% 1,139,049 14,3664.94% 965,846 11,9434.84%Subordinated debentures and notes 84,311 1,9449.22% 84,276 1,3786.54% 84,170 1,3816.56%Other borrowed funds 65,947 6954.20% 53,102 1,0127.58% 136,566 1,4064.09%Total borrowings 1,294,415 16,5975.02% 1,276,427 16,7565.14% 1,186,582 14,7304.86%Total interest-bearing liabilities 8,404,604 73,1593.46% 8,301,885 76,5523.67% 8,053,461 68,7643.39%Non-interest-bearing liabilities: Demand checking accounts 1,693,138 1,669,092 1,723,849 Other non-interest-bearing liabilities 250,303 264,324 323,855 Total liabilities 10,348,045 10,235,301 10,101,165 Stockholders’ equity 1,232,527 1,216,037 1,170,776 Total liabilities and equity$11,580,572 $11,451,338 $11,271,941 Net interest income (tax-equivalent basis) /Interest-rate spread (4) 85,7142.35% 83,2682.26% 83,6972.39%Less adjustment of tax-exempt income 726 260 142 Net interest income $84,988 $83,008 $83,555 Net interest margin (5) 3.12% 3.07% 3.15% (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 SUBSIDIARIESAverage Yields / Costs (Unaudited) Twelve Months Ended December 31, 2024December 31, 2023 Average BalanceInterest (1)Average Yield/ CostAverage BalanceInterest (1)Average Yield/ Cost (Dollars in Thousands)Assets: Interest-earning assets: Investments: Debt securities (2)$862,381$26,4163.06%$947,782$29,8913.15%Restricted equity securities (2) 74,788 5,7867.74% 72,264 5,5727.71%Short-term investments 164,445 8,5545.20% 158,718 8,3295.25%Total investments 1,101,614 40,7563.70% 1,178,764 43,7923.72%Loans and Leases: Commercial real estate loans (3) 5,760,432 327,2215.59% 5,654,385 307,6525.37%Commercial loans (3) 1,086,460 73,3696.65% 929,077 59,1106.28%Equipment financing (3) 1,352,993 106,3297.86% 1,277,224 92,1127.21%Consumer loans (3) 1,501,626 82,2735.47% 1,470,677 75,0985.10%Total loans and leases 9,701,511 589,1926.07% 9,331,363 533,9725.72%Total interest-earning assets 10,803,125 629,9485.83% 10,510,127 577,7645.50%Non-interest-earning assets 670,299 704,244 Total assets$11,473,424 $11,214,371 Liabilities and Stockholders' Equity: Interest-bearing liabilities: Deposits: NOW accounts$650,225 4,5430.70%$720,572 4,2750.59%Savings accounts 1,726,504 46,2202.68% 1,439,293 27,9741.94%Money market accounts 2,056,066 60,7962.96% 2,205,430 58,1532.64%Certificates of deposit 1,737,697 76,1344.38% 1,428,727 44,1223.09%Brokered deposit accounts 873,182 45,2705.18% 819,419 41,1415.02%Total interest-bearing deposits 7,043,674 232,9633.31% 6,613,441 175,6652.66%Borrowings: Advances from the FHLB 1,124,432 55,8514.89% 1,092,996 52,4674.73%Subordinated debentures and notes 84,258 6,0747.21% 84,116 5,4766.51%Other borrowed funds 78,859 4,0485.13% 124,793 3,9683.18%Total borrowings 1,287,549 65,9735.04% 1,301,905 61,9114.69%Total interest-bearing liabilities 8,331,223 298,9363.59% 7,915,346 237,5763.00%Non-interest-bearing liabilities: Demand checking accounts 1,657,922 1,823,759 Other non-interest-bearing liabilities 273,243 307,160 Total liabilities 10,262,388 10,046,265 Stockholders’ equity 1,211,036 1,168,106 Total liabilities and equity$11,473,424 $11,214,371 Net interest income (tax-equivalent basis) /Interest-rate spread (4) 331,0122.24% 340,1882.50%Less adjustment of tax-exempt income 1,427 477 Net interest income $329,585 $339,711 Net interest margin (5) 3.06% 3.24% (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 SUBSIDIARIESNon-GAAP Financial Information (Unaudited) At and for the Three Months EndedDecember 31,At and for the Twelve Months Ended December 31, 2024202320242023Reconciliation Table - Non-GAAP Financial Information (Dollars in Thousands Except Share Data) Reported Pretax Income $23,819 $28,563 $91,691 $93,914 Less: Security gains — — — 1,704 Add: Day 1 PCSB CECL provision — — — 16,744 Merger and acquisition expenses 3,378 — 4,201 7,411 Operating Pretax income $27,197 $28,563 $95,892 $116,365 Effective tax rate 23.9% 19.9% 24.5% 20.1%Provision for income tax 6,511 5,675 23,480 23,437 Operating earnings after tax $20,686 $22,888 $72,412 $92,928 Operating earnings per common share: Basic $0.23 $0.26 $0.81 $1.05 Diluted $0.23 $0.26 $0.81 $1.05 Weighted average common shares outstanding during the period: Basic 89,098,443 88,867,159 88,983,248 88,230,681 Diluted 89,483,964 89,035,505 89,302,304 88,450,646 Return on average assets * 0.61% 0.81% 0.60% 0.67%Less: Security gains (after-tax) * —% —% —% 0.01%Add: Day 1 PCSB CECL provision (after-tax) * —% —% —% 0.12%Merger and acquisition expenses (after-tax) * 0.09% —% 0.03% 0.05%Operating return on average assets * 0.70% 0.81% 0.63% 0.83% Return on average tangible assets * 0.62% 0.83% 0.61% 0.69%Less: Security gains (after-tax) * —% —% —% 0.01%Add: Day 1 PCSB CECL provision (after-tax) * —% —% —% 0.12%Merger and acquisition expenses (after-tax) * 0.09% —% 0.03% 0.05%Operating return on average tangible assets * 0.71% 0.83% 0.64% 0.85% Return on average stockholders' equity * 5.69% 7.82% 5.67% 6.42%Less: Security gains (after-tax) * —% —% —% 0.12%Add: Day 1 PCSB CECL provision (after-tax) * —% —% —% 1.14%Merger and acquisition expenses (after-tax) * 0.83% —% 0.26% 0.51%Operating return on average stockholders' equity * 6.52% 7.82% 5.93% 7.95% Return on average tangible stockholders' equity * 7.21% 10.12% 7.24% 8.36%Less: Security gains (after-tax) * —% —% —% 0.15%Add: Day 1 PCSB CECL provision (after-tax) * —% —% —% 1.49%Merger and acquisition expenses (after-tax) * 1.06% —% 0.33% 0.66%Operating return on average tangible stockholders' equity * 8.27% 10.12% 7.57% 10.36%* Ratios at and for the three months ended are annualized. BROOKLINE BANCORP, INC. AND SUBSIDIARIESNon-GAAP Financial Information (Unaudited) At and for the Three Months EndedAt and for the TwelveMonths Ended December 31, 2024September 30, 2024June 30, 2024March 31,2024December 31,2023December 31, 2024December 31, 2023 (Dollars in Thousands) Net income, as reported$17,536 $20,142 $16,372 $14,665 $22,888 $68,715 $74,999 Average total assets$11,580,572 $11,451,338 $11,453,394 $11,417,185 $11,271,941 $11,473,424 $11,214,371 Less: Average goodwill and average identified intangible assets, net 259,496 261,188 262,859 264,536 266,225 262,011 270,637 Average tangible assets$11,321,076 $11,190,150 $11,190,535 $11,152,649 $11,005,716 $11,211,413 $10,943,734 Return on average tangible assets (annualized) 0.62 % 0.72 % 0.59 % 0.53 % 0.83 % 0.61 % 0.69 % Average total stockholders’ equity$1,232,527 $1,216,037 $1,193,385 $1,201,904 $1,170,776 $1,211,036 $1,168,106 Less: Average goodwill and average identified intangible assets, net 259,496 261,188 262,859 264,536 266,225 262,011 270,637 Average tangible stockholders’ equity$973,031 $954,849 $930,526 $937,368 $904,551 $949,025 $897,469 Return on average tangible stockholders’ equity (annualized) 7.21 % 8.44 % 7.04 % 6.26 % 10.12 % 7.24 % 8.36 % Total stockholders’ equity$1,221,939 $1,230,362 $1,198,480 $1,194,231 $1,198,644 $1,221,939 $1,198,644 Less: Goodwill 241,222 241,222 241,222 241,222 241,222 241,222 241,222 Identified intangible assets, net 17,461 19,162 20,830 22,499 24,207 17,461 24,207 Tangible stockholders' equity$963,256 $969,978 $936,428 $930,510 $933,215 $963,256 $933,215 Total assets$11,905,326 $11,676,721 $11,635,292 $11,542,731 $11,382,256 $11,905,326 $11,382,256 Less: Goodwill 241,222 241,222 241,222 241,222 241,222 241,222 241,222 Identified intangible assets, net 17,461 19,162 20,830 22,499 24,207 17,461 24,207 Tangible assets$11,646,643 $11,416,337 $11,373,240 $11,279,010 $11,116,827 $11,646,643 $11,116,827 Tangible stockholders’ equity to tangible assets 8.27 % 8.50 % 8.23 % 8.25 % 8.39 % 8.27 % 8.39 % Tangible stockholders' equity$963,256 $969,978 $936,428 $930,510 $933,215 $963,256 $933,215 Number of common shares issued 96,998,075 96,998,075 96,998,075 96,998,075 96,998,075 96,998,075 96,998,075 Less: Treasury shares 7,019,384 7,015,843 7,373,009 7,354,399 7,354,399 7,019,384 7,354,399 Unvested restricted shares 880,248 883,789 713,443 749,099 749,099 880,248 749,099 Number of common shares outstanding 89,098,443 89,098,443 88,911,623 88,894,577 88,894,577 89,098,443 88,894,577 Tangible book value per common share$ 10.81 $ 10.89 $ 10.53 $ 10.47 $ 10.50 $ 10.81 $ 10.50 PDF available: http://ml.globenewswire.com/Resource/Download/396afece-df5e-4cc5-a637-0706599b2b0d

Brookline Bancorp Announces Fourth Quarter Results

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