Brookline Bancorp(US:BRKL)2025-04-23 20:13Brookline Bancorp First Quarter 2025 Results Financial Highlights Brookline Bancorp reported Q1 2025 net income of $19.1 million, operating earnings of $20.0 million, and a $0.135 dividend per share Q1 2025 Key Earnings Metrics | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Net Income | $19.1 million | $17.5 million | $14.7 million | | EPS (diluted) | $0.21 | $0.20 | $0.16 | | Operating Earnings (non-GAAP) | $20.0 million | $20.7 million | $14.7 million | | Operating EPS (non-GAAP) | $0.22 | $0.23 | $0.16 | - The Board of Directors declared a quarterly dividend of $0.135 per share, payable on May 23, 2025119 - Management highlighted strong performance from its bankers in growing deposits despite economic headwinds and noted an intentional contraction in loan portfolios to reduce commercial real estate (CRE) exposure and increase C&I market participation3 Balance Sheet As of March 31, 2025, total assets decreased to $11.5 billion due to reduced cash and loans, while total deposits slightly increased Balance Sheet Key Items (as of period end) | Item | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :--- | :--- | :--- | :--- | | Total Assets | $11.5 billion | $11.9 billion | $11.5 billion | | Total Loans and Leases | $9.6 billion | $9.8 billion | $9.7 billion | | Total Deposits | $8.91 billion | $8.90 billion | $8.72 billion | | Total Borrowed Funds | $1.2 billion | $1.5 billion | $1.4 billion | - Customer deposits increased by $113.8 million quarter-over-quarter, while brokered deposits declined by $104.0 million6 - The ratio of stockholders' equity to total assets improved to 10.77% from 10.26% in the prior quarter. Tangible book value per common share (non-GAAP) increased to $11.03 from $10.81 at the end of Q4 20248 Results of Operations Q1 2025 operational results showed increased net interest income and decreased non-interest expense, contributing to higher net income Net Interest Income Q1 2025 net interest income was $85.8 million, with NIM expanding by 10 basis points to 3.22% due to lower funding costs Net Interest Income and Margin (QoQ) | Metric | Q1 2025 | Q4 2024 | Change | | :--- | :--- | :--- | :--- | | Net Interest Income | $85.8 million | $85.0 million | +$0.8 million | | Net Interest Margin | 3.22% | 3.12% | +10 bps | Non-Interest Income Total non-interest income decreased to $5.7 million in Q1 2025, primarily due to a $1.0 million drop in net loan level derivative income Non-Interest Income (QoQ) | Metric | Q1 2025 | Q4 2024 | Change | | :--- | :--- | :--- | :--- | | Total Non-Interest Income | $5.7 million | $6.6 million | -$0.9 million | Non-Interest Expense Non-interest expense fell by $3.7 million to $60.0 million in Q1 2025, driven by reduced M&A expenses and compensation Non-Interest Expense (QoQ) | Metric | Q1 2025 | Q4 2024 | Change | | :--- | :--- | :--- | :--- | | Total Non-Interest Expense | $60.0 million | $63.7 million | -$3.7 million | Provision for Income Taxes The effective tax rate for Q1 2025 was 25.0%, compared to 26.4% in Q4 2024 and 24.7% in Q1 2024 - The effective tax rate was 25.0% in Q1 202516 Credit Quality Credit quality improved with decreased nonperforming assets, though provision for credit losses increased due to a specific commercial credit Provision for Credit Losses Provision for credit losses increased to $6.0 million in Q1 2025, largely due to a single commercial credit, with net charge-offs at $7.6 million Credit Loss Metrics (QoQ) | Metric | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | | Provision for Credit Losses | $6.0 million | $4.1 million | | Net Charge-offs | $7.6 million | $7.3 million | | Net Charge-offs to Avg. Loans (annualized) | 0.31% | 0.30% | - The allowance for loan and lease losses as a percentage of total loans and leases was 1.29% at March 31, 2025, a slight increase from 1.28% at December 31, 202413 Asset Quality Metrics Asset quality improved in Q1 2025, with total nonperforming assets decreasing by $6.4 million to $64.0 million, and key ratios declining Asset Quality Ratios (QoQ) | Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Nonperforming Assets | $64.0 million | $70.5 million | | Nonperforming Loans to Total Loans | 0.65% | 0.71% | | Nonperforming Assets to Total Assets | 0.56% | 0.59% | Returns and Dividends Profitability metrics improved in Q1 2025, with annualized returns on average assets and equity increasing, and the quarterly dividend maintained Key Return Ratios (Annualized) | Metric | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | | Return on Average Assets (ROA) | 0.66% | 0.61% | | Return on Average Stockholders' Equity (ROE) | 6.19% | 5.69% | | Return on Average Tangible Stockholders' Equity (ROTE, non-GAAP) | 7.82% | 7.21% | - The Board of Directors approved a quarterly dividend of $0.135 per share19 Appendix: Financial Tables This section contains detailed, unaudited financial statements and supplementary data, including balance sheets, income statements, and asset quality Selected Financial Highlights (Unaudited) Consolidated Balance Sheets (Unaudited) Consolidated Statements of Income (Unaudited) Asset Quality Analysis (Unaudited) Average Yields / Costs (Unaudited) Non-GAAP Financial Information (Unaudited)