Q3 2023 Brookline Bancorp Inc Earnings Call
Yes.
Yeah.
Good afternoon, and welcome to Brookline Bancorp, Inc. Third quarter 2023 earnings Conference call.
All participants will be in listen only mode.
After today's presentation there'll be an opportunity to ask questions. Please.
Please note this event is being recorded.
I would now like to turn the conference I've to Brookline Bancorp's of Tony Laura phone. Please go ahead.
Thank you Alex and good afternoon, everyone yesterday, we issued our earnings release and presentation.
On the Investor Relations.
Right.
Thanks.
We have been filed with the SEC you will not be doing a five quarter.
Today's call will be hosted by.
Hey, Paul and Carl M Carlson.
Forward looking statements with respect to the financial condition results of operation.
One data point.
Please refer to page two of our earnings presentation.
Looking statement disclaimer.
Also please refer to our other filings with the Securities and Exchange Commission.
Containing factors that could cause actual results to differ materially.
Looking statements.
Any references made during this presentation to non-GAAP measures.
To assist you in understanding that one day.
Performance trends and should not be.
It allowed on a financial measure of actual results or future predictions.
For a comparison and reconciliation to GAAP earnings please see our earnings release.
I'm pleased to introduce Brookline, Bancorp's, Chairman and CEO Paul Perrault.
Thanks, Laura and good afternoon, everyone. Thank you for joining us for todays earnings call.
Yesterday, we reported net income for the quarter of $22 7 million or.
Or 26 cents a share.
Our bankers remain active and we continue to see lots of opportunities to bank strong new relationships in our markets.
Loan portfolio grew by $40 million and customer deposits grew by $88 million in the quarter.
Nonperforming assets increased slightly in the quarter off historically low levels and remain less than half of 1% of total assets.
Net charge offs for the quarter were $11 million, which were largely previously reserved for.
Net charge offs over the.
Past 12 months represented approximately 14 basis points, while the allowance for loan loss represents a 127 basis points of total loans.
I'll now turn it over to Carl who will review the second quarter.
Yeah.
Thank you Paul.
This quarter's total assets finished the quarter basically flat with Q2, driven by a reduction in cash and securities partially offset by the growth in loans. The banking teams generated net loan growth of $40 million in the quarter with growth of $48 million split evenly between C&I and equipment finance the declines of $1 million in commercial real estate.
And $7 million and consumer loans.
Third quarter, we originated $562 million in loans at a weighted average coupon of 726 basis points.
This increased the weighted average coupon on the loan core loan portfolio 14 basis points to 582 basis points at September 30.
On a linked quarter basis, the yield on our loan portfolio increased 14 basis points to 584%.
On the funding side customer deposits grew $88 million in broker deposits were reduced $39 million for net growth in deposits was $49 million.
Growth continued to be in higher weight savings and time deposits, partially offset by declines in DDA now and money market products.
The average cost of total deposits increased 24 basis points in the quarter to 228 basis points.
Total average interest, earning assets declined $110 million on a linked quarter basis, and the net interest margin declined eight basis points to three 8%, resulting in net interest income of 84 million a decline of $2 million from the second quarter.
Noninterest income was $5 5 million for the quarter, which was consistent with the prior quarters.
Expenses were $57 7 million for the quarter 900000 from Q2, when excluding merger charges.
Recorded in Q2.
Provision for credit losses was $3 million for the quarter down $2 9 million from Q2.
Yesterday, the board approved maintaining our quarterly dividend of $13.05 per share to be paid on November 24 to stockholders of record on November 10th.
On an annualized basis, our dividend payout approximate a yield of approximately six 3%.
This concludes my formal comments I will turn it back to Paul.
Yes.
Yes.
Yes.
Thank you Karl we will now open it up for questions.
Yeah.
As a reminder, if you'd like to ask a question you can press star followed by one on the telephone keypad.
So much from me feel question you May press Star two.
Please ensure your unmetered lately when asking your question.
Our first question for today comes from Mark Fitzgibbon of Piper Sandler.
Your line is now open. Please go ahead.
Hey, guys good afternoon.
Mark.
Wondering if you could share some thoughts on the net interest margin.
The rate of decline has obviously slowed some.
Any any help that you could share with us on fourth quarter NIM.
In terms of additional margin compression.
Sure.
Again.
It's very difficult to estimate what's really going to happen here.
Last quarter, we saw july's deposits.
Really not a lot of movement on the deposit side that.
That accelerated in August so I didn't think we're going to have as much.
<unk> as we did experience a basis points.
But right.
Right now, we're estimating to be around five to six basis points next quarter.
Now again that all depends on what's going on with deposits, we're kind of modeling some aggressive moves and continued aggressive moves in deposits.