Brookline Bancorp(US:BRKL)2023-10-26 23:33Financial Data and Key Metrics Changes - The company reported net income of $22.7 million or $0.26 per share for the quarter [44] - Net charge-offs for the quarter were $11 million, representing approximately 14 basis points over the past 12 months [45] - The average cost of total deposits increased by 24 basis points to 228 basis points [60] - Net interest income declined by $2 million from the second quarter to $84 million [61] - Non-interest income remained consistent at $5.5 million for the quarter [62] Business Line Data and Key Metrics Changes - The loan portfolio grew by $40 million, with $562 million in loans originated at a weighted average coupon of 726 basis points [47][59] - Customer deposits increased by $88 million, with net growth in deposits of $49 million [60] - The yield on the loan portfolio increased by 14 basis points to 5.84% [59] Market Data and Key Metrics Changes - Nonperforming assets increased slightly but remain less than half of 1% of total assets [57] - The company is monitoring the office sector closely, which represents about 8% of its loans [26] Company Strategy and Development Direction - The company is focused on preserving capital for growth rather than stock buybacks at this time [23] - The company aims for loan growth of $80 million to $100 million per quarter, depending on deposit growth [96] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding loan pricing and customer base growth despite the current economic environment [8][9] - The company is seeing opportunities in the Equipment Finance and C&I sectors, with a positive outlook for the end of the year [104] Other Important Information - The Board approved maintaining the quarterly dividend of $0.135 per share, yielding approximately 6.3% annually [63] - The company is cautious about the commercial real estate sector but remains optimistic about well-managed properties [15][73] Q&A Session Summary Question: Loan pricing dynamics - Management noted that loan pricing is performing better than in the previous quarter, with optimism about future growth [8] Question: Expense trends - Management expects expenses to remain around $57 million per quarter with slight growth into next year [11] Question: Commercial real estate maturities - Management indicated that maturities are expected to be similar to the overall portfolio, with no significant stress anticipated [14][15] Question: Updates on Clarendon Private - Management stated that they are not reporting on this yet, but everything is proceeding as expected [19] Question: Buybacks strategy - Management is considering buybacks but is currently focused on preserving capital for growth [23][79] Question: Monitoring specific loan segments - Management is closely monitoring the office sector and is optimistic about well-managed properties [26][73] Question: Loan growth outlook - Management targets $80 million to $100 million in loan growth per quarter, contingent on deposit growth [96]