Brookline Bancorp(BRKL) - 2024 Q4 - Annual Results

Financial Performance - Net income for Q4 2024 was $17.5 million, or $0.20 per share, down from $22.9 million, or $0.26 per share, in Q4 2023[2] - Operating earnings for Q4 2024 were $20.7 million, or $0.23 per share, compared to $20.1 million, or $0.23 per share, in Q3 2024[2] - Net income for the three months ended September 30, 2024, was $17,536 thousand, down from $20,142 thousand in the previous quarter[30] - Basic earnings per common share for the twelve months ended December 31, 2024, was $0.77, down from $0.85 in 2023, a decrease of 9.4%[44] - Net income for the twelve months ended December 31, 2024, was $68,715,000, down from $74,999,000 in 2023, reflecting a decrease of 8.4%[44] Asset and Liability Management - Total assets increased by $228.6 million to $11.9 billion from Q3 2024, and by $523.1 million from $11.4 billion at the end of Q4 2023[5] - Total loans and leases reached $9.8 billion, an increase of $137.7 million from Q4 2023[5] - Total deposits increased by $169.4 million to $8.9 billion from Q3 2024, and by $353.5 million from $8.5 billion at the end of Q4 2023[7] - Total assets as of September 30, 2024, were $11,905,326 thousand, an increase from $11,676,721 thousand at the end of the previous quarter[33] - Total liabilities increased to $10,348,045, up from $10,235,301, reflecting a growth of 1.1% year-over-year[51] Income and Expense Analysis - Net interest income rose to $85.0 million in Q4 2024, up from $83.0 million in Q3 2024, with a net interest margin of 3.12%[10] - Non-interest income for Q4 2024 was $6.6 million, an increase of $0.2 million from Q3 2024[12] - Total non-interest income decreased to $25,615,000 in 2024 from $31,934,000 in 2023, a decline of 19.6%[44] - Total non-interest expense increased to $241,865,000 in 2024 from $239,524,000 in 2023, a slight increase of 1.0%[44] - Non-interest expense increased to $63,719 thousand for the three months ended September 30, 2024, from $57,948 thousand in the previous quarter[30] Credit Quality and Provisions - The provision for credit losses decreased to $4.1 million in Q4 2024 from $4.8 million in Q3 2024[13] - Provision for credit losses on loans was $22,003,000 in 2024, significantly lower than $37,868,000 in 2023, indicating improved asset quality[44] - Nonperforming loans and leases as a percentage of total loans and leases decreased to 0.73% from 0.71%, indicating improved asset quality[47] - The allowance for loan and lease losses was $125,083 thousand, which is 1.28% of total loans and leases, consistent with the previous quarter's ratio of 1.31%[34] - Net charge-offs totaled $7,252 million, an increase from $3,808 million in the previous quarter, indicating higher credit losses[47] Tax and Regulatory Matters - The effective tax rate for Q4 2024 was 26.4%, compared to 24.7% in Q3 2024[18] - The effective tax rate for the twelve months ended December 31, 2024, was 24.5%, compared to 20.1% in 2023, representing an increase of 22%[60] Mergers and Acquisitions - The proposed merger with Berkshire Hills Bancorp is expected to close by the end of the second half of 2025, with Brookline stockholders owning approximately 45% of the combined company[23] - The company reported merger and acquisition expenses of $4,201 for the twelve months ended December 31, 2024, compared to $7,411 in 2023, indicating a decrease of 43%[60] Shareholder Metrics - Return on average assets (annualized) was 0.61% for the three months ended September 30, 2024, compared to 0.70% in the previous quarter[33] - Return on average stockholders' equity (annualized) was 5.69% for the three months ended September 30, 2024, down from 6.63% in the previous quarter[33] - Total stockholders' equity increased to $1,221,939 million from $1,198,644 million, reflecting a growth of approximately 1.9%[65] - Return on average tangible stockholders' equity was 7.21% for the three months ended December 31, 2024, compared to 10.12% in the previous quarter[62] Growth Metrics - Total interest and dividend income for the twelve months ended December 31, 2024, was $628,521,000, an increase from $577,287,000 in 2023, representing an 8.9% growth[43] - Total loans and leases for the twelve months ended December 31, 2024, amounted to $587,929,000, up from $533,739,000 in 2023, an increase of 10.1%[43] - Total commercial loans and leases increased to $52,957 million, up from $46,185 million, representing a growth of 14.5% year-over-year[47]