Net Income of $14.7 million, EPS of $0.16 Quarterly Dividend of $0.135 BOSTON, April 24, 2024 (GLOBE NEWSWIRE) -- Brookline Bancorp, Inc. (NASDAQ:BRKL) (the "Company") today announced net income of $14.7 million, or $0.16 per basic and diluted share, for the first quarter of 2024, compared to net income of $22.9 million, or $0.26 per basic and diluted share, for the fourth quarter of 2023, and net income of $7.6 million, or $0.09 per basic and diluted share, for the first quarter of 2023. Paul Perrault, Chairman and CEO, commented on the Company's first quarter earnings, "Our Company, along with the rest of the banking industry, continues to face margin pressure. As we look ahead to the second quarter we are optimistic about the overall economic outlook in our markets. We remain active in our communities and our dedicated team of bankers continues to provide our customers with the exceptional service they have come to appreciate." BALANCE SHEET Total assets at March 31, 2024 were $11.5 billion, representing an increase of $160.5 million from $11.4 billion at December 31, 2023, and an increase of $20.2 million from March 31, 2023. At March 31, 2024, total loans and leases were $9.7 billion, representing an increase of $13.5 million from December 31, 2023, and an increase of $408.1 million from March 31, 2023. Total investment securities at March 31, 2024 decreased $50.8 million to $865.8 million from $916.6 million at December 31, 2023, and decreased $201.2 million from $1.1 billion at March 31, 2023. Total cash and cash equivalents at March 31, 2024 increased $168.9 million to $301.9 million from $133.0 million at December 31, 2023, and decreased $184.4 million from $486.3 million at March 31, 2023. As of March 31, 2024, total investment securities and total cash and cash equivalents represented 10.1 percent of total assets compared to 9.2 percent and 13.5 percent as of December 31, 2023 and March 31, 2023, respectively. Total deposits at March 31, 2024 increased $170.5 million to $8.7 billion from $8.5 billion at December 31, 2023, consisting of an $80.8 million increase in customer deposits and an $89.8 million increase in brokered deposits, and increased $262.2 million from $8.5 billion at March 31, 2023, driven by growth in customer deposits. Total borrowed funds at March 31, 2024 decreased $14.8 million to $1.4 billion from December 31, 2023, and decreased $268.2 million from $1.6 billion at March 31, 2023. The ratio of stockholders' equity to total assets was 10.35 percent at March 31, 2024, compared to 10.53 percent at December 31, 2023, and 10.11 percent at March 31, 2023. The ratio of tangible stockholders' equity to tangible assets (non-GAAP) was 8.25 percent at March 31, 2024, as compared to 8.39 percent at December 31, 2023, and 7.94 percent at March 31, 2023. Tangible book value per common share (non-GAAP) decreased $0.03 from $10.50 at December 31, 2023 to $10.47 at March 31, 2024, and increased $0.39 from $10.08 at March 31, 2023. NET INTEREST INCOME Net interest income decreased $2.0 million to $81.6 million during the first quarter of 2024 from $83.6 million for the quarter ended December 31, 2023. The net interest margin decreased 9 basis points to 3.06 percent for the three months ended March 31, 2024 from 3.15 percent for the three months ended December 31, 2023, primarily driven by higher funding costs. NON-INTEREST INCOME Total non-interest income for the quarter ended March 31, 2024 decreased $1.7 million to $6.3 million from $8.0 million for the quarter ended December 31, 2023. The decrease was primarily driven by a decline of $1.1 million in other non-interest income which was primarily driven by the mark to market on interest rate swaps on participated loans of $0.8 million, a $0.4 million decline in gain on sales of loans and leases, and a $0.3 million decline in loan derivative income, net, partially offset by an increase of $0.3 million in loan fees. PROVISION FOR CREDIT LOSSES The Company recorded a provision for credit losses of $7.4 million for the quarter ended March 31, 2024, compared to $3.8 million for the quarter ended December 31, 2023. The increase in provision was largely driven by an increase in expected losses in the Company's equipment finance businesses. Total net charge-offs for the first quarter of 2024 were $8.8 million compared to $7.1 million in the fourth quarter of 2023. The $8.8 million in net charge-offs were largely driven by $4.7 million in commercial loans, the majority of which was previously specifically reserved for, and $3.5 million in equipment financing. The equipment financing charge-offs were largely small dollar specialty vehicle charge-offs. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis increased to 36 basis points for the first quarter of 2024 from 30 basis points for the fourth quarter of 2023. The allowance for loan and lease losses represented 1.24 percent of total loans and leases at March 31, 2024, compared to 1.22 percent at December 31, 2023, and 1.31 percent at March 31, 2023. ASSET QUALITY The ratio of nonperforming loans and leases to total loans and leases was 0.42 percent at March 31, 2024, a decrease from 0.45 percent at December 31, 2023. Total nonaccrual loans and leases decreased $3.0 million to $40.7 million at March 31, 2024 from $43.6 million at December 31, 2023. The ratio of nonperforming assets to total assets was 0.37 percent at March 31, 2024, a decrease from 0.40 percent at December 31, 2023. Total nonperforming assets decreased $2.8 million to $42.5 million at March 31, 2024 from $45.3 million at December 31, 2023. NON-INTEREST EXPENSE Non-interest expense for the quarter ended March 31, 2024 increased $1.8 million to $61.0 million from $59.2 million for the quarter ended December 31, 2023. The increase was primarily driven by increases of $1.2 million in compensation and employee benefits expense, $0.8 million in advertising and marketing expense, $0.6 million in occupancy expense, and $0.5 million in professional services expense, partially offset by decreases of $0.9 million in other non-interest expense, $0.3 million in amortization of identified intangible assets expense, and $0.2 million in equipment and data processing expense. PROVISION FOR INCOME TAXES The effective tax rate was 24.7 percent for the three months ended March 31, 2024 compared to 19.9 percent for the three months ended December 31, 2023 and 12.8 percent for the three months ended March 31, 2023. RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY The annualized return on average assets decreased to 0.51 percent during the first quarter 2024 from 0.81 percent for the fourth quarter of 2023. The annualized return on average stockholders' equity decreased to 4.88 percent during the first quarter of 2024 from 7.82 percent for the fourth quarter of 2023. The annualized return on average tangible stockholders' equity decreased to 6.26 percent for the first quarter of 2024 from 10.12 percent for the fourth quarter of 2023. DIVIDEND DECLARED The Company's Board of Directors approved a dividend of $0.135 per share for the quarter ended March 31, 2024. The dividend will be paid on May 24, 2024 to stockholders of record on May 10, 2024. CONFERENCE CALL The Company will conduct a conference call/webcast at 1:30 PM Eastern Time on Thursday, April 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/249109629. 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 923783). A recorded playback of the call will be available for one week following the call on the Company's website under "Investor Relations" or by dialing 866-813-9403 (United States) or 929-458-6194 (internationally) and entering the passcode: 815015. 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, 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) BROOKLINE BANCORP, INC. AND SUBSIDIARIES Selected Financial Highlights (Unaudited)     At and for the Three Months Ended   March 31,2024 December 31, 2023 September 30,2023 June 30,2023 March 31, 2023   (Dollars In Thousands Except per Share Data) Earnings Data:                               Net interest income $ 81,588   $ 83,555   $ 84,070   $ 86,037   $ 86,049   Provision for credit losses on loans   7,423     3,851     2,947     5,726     25,344   Provision (credit) for credit losses on investments   (44 )   (76 )   84     133     198   Non-interest income   6,284     8,027     5,508     5,462     12,937   Non-interest expense   61,014     59,244     57,679     57,825     64,776   Income before provision for income taxes   19,479     28,563     28,868     27,815     8,668   Net income   14,665     22,888     22,701     21,850     7,560                                   Performance Ratios:                               Net interest margin (1)   3.06 %   3.15 %   3.18 %   3.26 %   3.36 % Interest-rate spread (1)   2.21 %   2.39 %   2.45 %   2.51 %   2.66 % Return on average assets (annualized)   0.51 %   0.81 %   0.81 %   0.78 %   0.27 % Return on average tangible assets (annualized) (non-GAAP)   0.53 %   0.83 %   0.83 %   0.79 %   0.28 % Return on average stockholders' equity (annualized)   4.88 %   7.82 %   7.78 %   7.44 %   2.61 % Return on average tangible stockholders' equity (annualized) (non-GAAP)   6.26 %   10.12 %   10.09 %   9.67 %   3.43 % Efficiency ratio (2)   69.44 %   64.69 %   64.39 %   63.20 %   65.44 %                                 Per Common Share Data:                               Net income — Basic $ 0.16   $ 0.26   $ 0.26   $ 0.25   $ 0.09   Net income — Diluted   0.16     0.26     0.26     0.25     0.09   Cash dividends declared   0.135     0.135     0.135     0.135     0.135   Book value per share (end of period)   13.43     13.48     13.03     13.11     13.14   Tangible book value per share (end of period) (non-GAAP)   10.47     10.50     10.02     10.07     10.08   Stock price (end of period)   9.96     10.91     9.11     8.74     10.50                                   Balance Sheet:                               Total assets $ 11,542,731   $ 11,382,256   $ 11,180,555   $ 11,206,078   $ 11,522,485   Total loans and leases   9,655,086     9,641,589     9,380,782     9,340,799     9,246,965   Total deposits   8,718,653     8,548,125     8,566,013     8,517,013     8,456,462   Total stockholders' equity   1,194,231     1,198,644     1,157,871     1,162,308     1,165,066                                   Asset Quality:                               Nonperforming assets $ 42,489   $ 45,324   $ 51,540   $ 46,925   $ 28,962   Nonperforming assets as a percentage of total assets   0.37 %   0.40 %   0.46 %   0.42 %   0.25 % Allowance for loan and lease losses $ 120,124   $ 117,522   $ 119,081   $ 125,817   $ 120,865   Allowance for loan and lease losses as a percentage of total loans and leases   1.24 %   1.22 %   1.27 %   1.35 %   1.31 % Net loan and lease charge-offs $ 8,781   $ 7,141   $ 10,974   $ 1,097   $ 451   Net loan and lease charge-offs as a percentage of average loans and leases (annualized)   0.36 %   0.30 %   0.47 %   0.05 %   0.02 %                                 Capital Ratios:                               Stockholders' equity to total assets   10.35 %   10.53 %   10.36 %   10.37 %   10.11 % Tangible stockholders' equity to tangible assets (non-GAAP)   8.25 %   8.39 %   8.16 %   8.16 %   7.94 %                                 (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, 2024 December 31,2023 September 30,2023 June 30,2023 March 31, 2023 ASSETS (In Thousands Except Share Data) Cash and due from banks $ 45,708   $ 34,514   $ 33,506   $ 44,323   $ 30,782   Short-term investments   256,178     98,513     127,495     180,109     455,538   Total cash and cash equivalents   301,886     133,027     161,001     224,432     486,320   Investment securities available-for-sale   865,798     916,601     880,412     910,210     1,067,032   Total investment securities   865,798     916,601     880,412     910,210     1,067,032   Allowance for investment security losses   (398 )   (441 )   (517 )   (433 )   (301 ) Net investment securities   865,400     916,160     879,895     909,777     1,066,731   Loans and leases held-for-sale   6,717     —     —     —     —   Loans and leases:           Commercial real estate loans   5,755,239     5,764,529     5,669,768     5,670,771     5,610,414   Commercial loans and leases   2,416,904     2,399,668     2,241,375     2,193,027     2,147,149   Consumer loans   1,482,943     1,477,392     1,469,639     1,477,001     1,489,402   Total loans and leases   9,655,086     9,641,589     9,380,782     9,340,799     9,246,965   Allowance for loan and lease losses   (120,124 )   (117,522 )   (119,081 )   (125,817 )   (120,865 ) Net loans and leases   9,534,962     9,524,067     9,261,701     9,214,982     9,126,100   Restricted equity securities   74,709     77,595     65,460     71,421     86,230   Premises and equipment, net of accumulated depreciation   89,707     89,853     90,476     90,685     87,799   Right-of-use asset operating leases   33,133     30,863     31,619     31,774     30,067   Deferred tax asset   60,484     56,952     74,491     77,704     75,028   Goodwill   241,222     241,222     241,222     241,222     241,222   Identified intangible assets, net of accumulated amortization   22,499     24,207     26,172     28,126     30,080   Other real estate owned and repossessed assets   1,817     1,694     299     602     508   Other assets   310,195     286,616     348,219     315,353     292,400   Total assets $ 11,542,731   $ 11,382,256   $ 11,180,555   $ 11,206,078   $ 11,522,485   LIABILITIES AND STOCKHOLDERS' EQUITY           Deposits:           Demand checking accounts $ 1,629,371   $ 1,678,406   $ 1,745,137   $ 1,843,516   $ 1,899,370   NOW accounts   654,748     661,863     647,476     699,119     757,411   Savings accounts   1,727,893     1,669,018     1,625,804     1,464,054     1,268,375   Money market accounts   2,065,569     2,082,810     2,161,359     2,166,570     2,185,971   Certificate of deposit accounts   1,670,147     1,574,855     1,491,844     1,410,905     1,362,970   Brokered deposit accounts   970,925     881,173     894,393     932,849     982,365   Total deposits   8,718,653     8,548,125     8,566,013     8,517,013     8,456,462   Borrowed funds:           Advances from the FHLB   1,150,153     1,223,226     899,304     1,043,381     1,458,457   Subordinated debentures and notes   84,223     84,188     84,152     84,116     84,080   Other borrowed funds   127,505     69,256     151,612     98,773     87,565   Total borrowed funds   1,361,881     1,376,670     1,135,068     1,226,270     1,630,102   Operating lease liabilities   34,235     31,998     32,807     33,021     31,373   Mortgagors' escrow accounts   16,245     17,239     12,578     17,207     17,080   Reserve for unfunded credits   15,807     19,767     21,497     22,789     23,112   Accrued expenses and other liabilities   201,679     189,813     254,721     227,470     199,290   Total liabilities   10,348,500     10,183,612     10,022,684     10,043,770     10,357,419   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   903,726     902,659     901,376     905,084     904,174