Brookline Bancorp(US:BRKL)2025-03-03 16:50Financial Performance - The Company anticipates a decrease in earnings per share to $0.77 for 2024 from $0.85 for 2023[31]. - Total assets increased to $11,473,424 thousand in 2024, up from $11,214,371 thousand in 2023, representing a growth of 2.31%[312]. - The Company reported a net income of $74.999 million for 2023, a decrease of 31.7% from $109.744 million in 2022[367]. - Non-interest income fell by $6.3 million, or 19.8%, to $25.6 million in 2024, driven by declines in loan level derivative income, gain on sales of investment securities, and gain on sales of loans and leases[333]. - The efficiency ratio rose to 68.09% in 2024 from 64.45% in 2023, attributed to lower net interest income and non-interest income, alongside higher non-interest expenses[338]. Capital and Regulatory Compliance - The minimum common equity Tier 1 capital ratio requirement is 4.5%, with a minimum total capital requirement of 8.0%[64]. - The Company is considered "well capitalized" under the FRB's rules applicable to bank holding companies[67]. - The FRB may prohibit bank holding companies from paying dividends if deemed unsafe or unsound, requiring net income to fund dividends[71]. - The aggregate amount of covered transactions with affiliates cannot exceed 10% of the capital stock and surplus of the insured depository institution[73]. - The Company has made a one-time, permanent election to exclude accumulated other comprehensive income from capital[63]. Interest Income and Expenses - Total interest income from investments decreased by $2.96 million, or 6.8%, to $40.6 million in 2024 compared to $43.5 million in 2023[325]. - Interest income from loans and leases increased by $54.2 million to $587.9 million in 2024, representing a yield of 6.07%, compared to $533.7 million and a yield of 5.72% in 2023[323]. - Total interest expense increased by $61.4 million, or 25.8%, to $298.9 million in 2024 from $237.6 million in 2023, driven by higher interest rates and increased volume[326]. - Interest paid on deposits rose by $57.3 million, or 32.6%, in 2024 compared to 2023, primarily due to a $41.9 million increase from higher interest rates[327]. - The yield on interest-earning assets increased to 5.83% for the year ended December 31, 2024, up from 5.50% in 2023, attributed to higher yields on loans and leases[319]. Asset Quality and Loan Performance - The quality of the Company's assets influences earnings, with timely provisions for loan and lease losses necessary based on estimated probable losses[310]. - The allowance for loan and lease losses was $121,628 thousand in 2024, slightly up from $120,613 thousand in 2023[312]. - The provision for credit losses decreased by $16.6 million to $21.6 million in 2024 from $38.2 million in 2023, primarily due to the absence of a day one provision from the PCSB acquisition[331]. - Commercial real estate loans amounted to $5,760,432 thousand, with an interest income of $327,221 thousand, reflecting a yield of 5.59%[312]. - Total loans and leases increased to $9,701,511 thousand, with a net interest income of $589,192 thousand, yielding 6.07%[312]. Employment and Operations - The Company had 951 full-time employees and 49 part-time employees as of December 31, 2024[38]. - The Company operated 63 full-service banking offices in Greater Boston, Massachusetts, Rhode Island, and New York as of December 31, 2024[32]. - The five largest banks in Massachusetts have an aggregate market share of approximately 69%[32]. - The three largest banks in Rhode Island have an aggregate deposit market share of approximately 69%[32]. - The three largest banks in New York have an aggregate deposit market share of approximately 52%[32]. Interest Rate Risk Management - Interest-rate risk management is governed by the ALCO, which establishes exposure limits and monitors the balance sheet's composition[385]. - As of December 31, 2024, the Company's interest-rate risk position was measured to be modestly asset-sensitive, indicating a potential increase in net interest income during rising interest rates[388]. - The estimated economic value of equity (EVE) at risk shows a decrease in sensitivity, with a 300 basis points increase resulting in a change of (5.5)% as of December 31, 2024, compared to (6.3)% in 2023[394]. - The cumulative one-year negative gap position increased from $521.4 million or 4.89% of total interest-earning assets as of December 31, 2023, primarily due to an increase in borrowed funds and non-maturity deposits[400]. - The weighted average rate for total interest-earning assets was 5.61% as of December 31, 2024, compared to 5.07% for interest-bearing liabilities, resulting in a net interest margin of 2.41%[397].