BRKL - Earnings call 3 2023 | Brookline Bancorp, Inc.

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Operator

Good afternoon, and welcome to the Brookline Bancorp, Inc.'s Third Quarter 2023 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded.

I'd now like to turn the conference over to Brookline Bancorp's Attorney, Laura Vaughn. Please go ahead.

Laura Vaughn

Thank you, Alex, and good afternoon, everyone. SEC. earnings Relations presentation, brooklinebancorp.com page been with our on is and issued filed Investor the of the we release which and available has Yesterday, our website,

this flip X business We the results this Page be filings will that refer financial our to by only are to and Perrault could be may other condition, materially trends Carlson. This A. non-GAAP Exchange assist of factors of results presentation Please made understanding as Brookline for not results Carl should you actual Paul doing to with performance contain not a contain forward-looking relied hosted quarter. during or afternoon's statements to Brookline measures call and earnings differ be Bancorp. risk This of on statements. Any forward-looking Securities Bancorp's please financial will presentation M. call the and disclaimer. statement future cause and operations actual refer predictions. slide respect and to forward-looking results our from measures to Commission, our Also, with these in which made of references

Bancorp's comparison Perrault. pleased earnings, earnings GAAP For to reconciliation CEO, and please our introduce see and a to Brookline Chairman Paul release. I'm

Paul Perrault

$XX.X Laura, of call. million us everyone. or Yesterday, Thanks, and a for Thank earnings quarter afternoon, $X.XX joining for we income today's good you for the reported net share.

the of see levels, increased less to grew quarter lots remain deposits $XX low half loan and opportunities million and bank's by assets. to assets bankers slightly off ]new of we than $XX our of million continue by Nonperforming the relationships markets. The grew X% remain Our historically in portfolio total active, and in strong [ in quarter. customer

points, total now for. offs for the basis over over charge turn points represent of to offs Carl XXX loan Net past reserved quarter were review $XX charge previously who loans. I'll approximately XX which results. the XX loss the represents while allowance basis will months the Net largely for million, were quarter it second

Carl Carlson

Paul. you, Thank

loans total growth in with basis million core quarter XX cash the banking quarter's on in of of loan million C&I loans. In in and increased driven offset in coupon of estate finished basis third XX a basis portfolio at the basis, commercial points growth quarter, average portfolio Equipment to to coupon the and $XXX points $X weighted $XX consumer the quarter, in loan by by $XX loan quarter yield of flat million, the -- reduction weighted points. linked in basis we basically $X loan X.XX%. points XXX September assets net QX, the million with the This loans. The split evenly average originated and real generated teams million growth on increased the securities, partially This a Finance, the XX. On a at declines between XXX

partially net quarter offset On points $X to basis, the million. to in interest-earning funding for and money million million a $XX higher basis basis deposits resulting market million, time cost X assets interest linked the decline declined average basis in a of be and declined on Total margin XX XXX products. The by in deposits million million to points of total income now $XX $XX interest second quarter declines deposits increased in the rate reduced points. deposits, were the $XX of $XXX deposits and customer X.XX%, growth Growth brokered side, of net net savings continued from in quarter. DDA average and grew

quarter, million recorded merger prior quarter. when QX. was $XXX,XXX in which excluding Expenses were million charges income for the $X.X was QX consistent Noninterest for up the $XX.X quarter, from the with

basis, QX. Yesterday, paid approved on and approximates an from of million $X back On November was turn our of maintaining per Provision dividend XX. to my payout formal to comments, I'll to quarterly a losses dividend on our for credit X.X%. the $X.X XX it yield record Paul. $X.XXX stockholders be the annualized Board November This of million for concludes down approximately share, quarter,

Paul Perrault

Thank you, Carl.

open for We questions. will now it up

Operator

Fitzgibbon Instructions] [Operator today comes from for question first Our Piper Mark Sandler. of

Mark Fitzgibbon

in Carl, share I of additional obviously you terms interest could on compression. with margin share quarter the The you us that wondered some. net if on rate help could margin. slowed has thoughts Any fourth some decline NIM of

Carl Carlson

very Again, happen on August. not to that lot here. movement it's really July's the in Last -- we of deposit estimate side going difficult really Sure. a accelerated deposits what's quarter, to saw

in now, So kind as X I going have Again, next around as the aggressive NIM deposits. basis compression did didn't all think we're to moves continued to right X estimating We're of depends points. But points be basis quarter. what's we much deposits. X -- on are to moves some that we on aggressive with experience, going modeling

than actually be but we'll less Our might that, it bankers suggesting far are see.

Mark Fitzgibbon

that wondered then Okay. Great. us real And if million on I estate could share nonaccrual. on commercial details any went loan $XX.X you that with secondly,

Paul Perrault

create that, It and can helpful the here they be right environment And patient. and not but where working building the able It have significantly an that can be Boston. is Office been in optimistic we in pretty we're to over place will fairly get top be is very well they owned. soon. with them I'm it occupied, to

Mark Fitzgibbon

other well you participation a of banks? was owned, Paul, say there bunch with

Paul Perrault

has in a manager It's no. owner property and with partners who him. it No,

it's own very able to may investors we side. it to on I referring I and think bunch of participant have one guy. -- a by really was our bank managed But who it's

Mark Fitzgibbon

debt any Okay. what look and color like service the LTV at on And origination?

Paul Perrault

would a look ratio. have It most of our pretty loan-to-value would been coverage which be originations, would like I high speculating. and a low pretty

Mark Fitzgibbon

closely kind loan monitoring. curious of pieces or you areas. book carefully? traffic Okay. most guys enhanced commercial lot commercial today monitoring of you And on I you a guess are the most sort of watching and at have a What are and focused level, real was What high then in I different where you estate areas of

Paul Perrault

We've of our years a loans. trying maturities just marketplace loans, about we're lot, active Well, be I that are monitor what over and but are to whole which but really to it's been few in XXX. up happening trades of a know, of got most quiet, the Westchester. as think Boston what going like, amount office, don't are to the it's the occupancy, but rates looking more next But Metro it's coming X% been in little the very cap bit you represents sort inside particularly in

Mark Fitzgibbon

going update on asset How and Clarendon management? an for last or -- And question updates Okay. then things me. there? under Private, any are

Carl Carlson

still that Yes, game, is point, this the we're expect. out but not everything we reporting at in still as proceeding early

Operator

Cucharale Group. from Nick Our next question comes Hovde from

Nicholas Cucharale

comment quarter overall portfolio? the credit strong high you Equipment rates And the division. can percentage economic considering total for to risk how that take Another higher a you're How you are in as environment? approaching loan Finance to in those customers of growth and on willing balances the segment

Paul Perrault

seeing below I've on this think a Equipment of lot We're comfortable in would as Finance up that long would of at And business be the where I the XX% that held operate. are -- well I area. areas are to consolidation the carrying in book much they usual. that be They point. as loan as they

that inflation up been, It And at with a able to operators think of some rates. care being as these deals problem. higher customers. to of opportunities bulk So for the hasn't has been it I they the are their take see really our

delinquencies We in haven't seen anything. or any uptick

Nicholas Cucharale

demand deposit on then At helpful. in the your to discussion. And That's you up in point just follow Okay. are deposits? the quarter, seeing stability this

Carl Carlson

We are.

we're some So runoff but said too. still have in we've would But not as seen past. aggressive I July, the last that seeing as

go that forward. So as I'll couch we

Paul Perrault

it around. jumps And

Carl Carlson

around, does jump It down. but around. slowing jumps it's It

Operator

Moss Our James. next Steve of question comes from Raymond

Stephen Moss

curious that the pricing, talk if just Just on dynamic. coming kind are about books loans here of and we [indiscernible] loan

Carl Carlson

Sure. What to know? you would like

Stephen Moss

and today did you put what quarter? Let's pricing you on are the third that way. put in Where it versus

Carl Carlson

numbers quarter. quarter the third third So average on are for

comping that. certainly than things higher in So are

has know, As the [ even substantially you ] since X-year September. moved

much pricing have loan on is specific doing I much, So but date, all numbers the to the better don't side.

And very we're there. optimistic so

On at of out our the haven't pricing X much we move had particularly to seeing our on growth the around grow bit. the We've curve deposit move we've XX, naturally, to the we seen side, XX not moved funding still that the -- rates really is side to though there. our and of on our what from quite we're X deposit a side, even still customer I'm part base about optimistic all, continue -- consider longer deposit side, moved

that optimistic in pretty So sense.

Stephen Moss

just in the Okay. curious of And to just quarter? related then accretion what other for question -- margin, was purchase accounting terms the

Carl Carlson

loans. on million $X.X Almost

Stephen Moss

in about feeling curious then And expenses just just in the Okay. also the are next guys even trends but fourth current on how of here, year environment. you into terms quarter, expense

Carl Carlson

going feel around like with slight $XX million We next growth to year. into we're at the area, right this be quarter this around going point

Stephen Moss

just then one deck, the CRE XX next months. on maturities, I had guys you for saw over more And the me. the first your

of you of having theory overall you the slides do a to the ] And see coming think maturities Just what similar composition as [ portfolio? pipeline? curious what's the earlier kind that stress we Should due? in any LTV show about the maturity in

Carl Carlson

It going what very to buckets I or of have similar front of steady be of like we we sounds don't book. earlier, portfolio. much me. the mentioned by quarter But I actually maturities by in have -- maturity Paul the lot they're a overall the as imagine to pretty

Paul Perrault

well. that difficult so something And to well very of but They've it's underwritten. hard what loans Those very trades, were pinpoint performed terms worth because that, there now. in is will right is it's expectation have continue. current been a loan-to-value, few environment The very

that most in here, owned. bank right and not of might well for deals spectacular those are there. have been around have the But locations, buildings here part, and of a not few crashes been they have the There things been a weren't few sort traditional

of So noise will that there expect I in be lot renewals. a those don't

Operator

Our Hunsicker next Laura Seaport question of Partners. Research from comes

Laura Havener Hunsicker

commercial to wanted I just to credit, please. back go

or with tree office Class over that into came nonaccrual. So B? your million starting a $XX.X that Is A Class

Paul Perrault

Class It's considered B. probably

Laura Havener Hunsicker

B. Class

then vacancy And did have that? Okay. on the you

Paul Perrault

have in enough. don't of It me. I is front not quite empty. not that It's

Laura Havener Hunsicker

service Yes, a current that's didn't And true of most of right? on then Boston, debt that. you have

Paul Perrault

of have front was in But don't terrible. me. I it Yes. that Again, not

Laura Havener Hunsicker

credit? million against $XX.X you And have Okay. is do then reserve -- specific a that there

Paul Perrault

On don't that I think one, so.

Laura Havener Hunsicker

Okay.

then the [indiscernible] And X Okay.

Paul Perrault

specific reserve one and a take category. is only in specific serious pretty reserve. quite when that only not take a We we've We got situation, this a

Laura Havener Hunsicker

Okay.

good. That's Okay.

you to give Your X can in were the little commercial color as offs, us charge a they quarter? what

Paul Perrault

was against have other their not a is a we Those development is not them. It of been big were managed are a just cases, both apart. time. properly, Yes. thing, well and And things some reserves driven enterprise. and for going These the not was both they market One had quite things enterprise -- that self-inflicted medical demise wounds. in fell

is So is money. the some lost still the it news good bad wasn't that The news we market.

Laura Havener Hunsicker

So they credits. both were C&I

Paul Perrault

Correct. Yes.

Laura Havener Hunsicker

Okay.

just back your then to Okay. office And going book. $XXX here, million

for of couple is hoping things. medical? on lower of risk a Just that refresh How a much

Carl Carlson

don't me. have of numbers in front I those

not of is a office in sense. it part Sorry. big portfolio our the

it up things. in it's -- the side owner-occupied Sometimes more owner-occupied of in stands the

Laura Havener Hunsicker

Got you.

then just Okay. much think A how million, can versus help C? B you is $XXX And versus us about Class your of

Carl Carlson

big Class A not We're lenders.

a it's amount. So small

Laura Havener Hunsicker

your help I is And much is do you Boston? downtown suburbs, just of how roughly what then think know you about us but in that Okay. most can the exposure

Carl Carlson

that provided in deck. We the

Laura Havener Hunsicker

do. You

that, back missed look Okay. I at and go that. I'll

spot of to I'm the I ask you quarter. the in we're I on us Okay. in Have looks you Slide renewals give early on looking A, and yet? maybe And guess like Or million is that? $XX you on know B this. just here what got the still any maturing like. quarter But color $XX question then any C? sorry you've Any that's on how had last million. fourth just the it update on much office. XX, can and on

Carl Carlson

timing B I those color don't or the C. whether to A, going when any or are on it's have of renewed get

Paul Perrault

seen haven't I not but Yes. [ don't I them any have ] noise. know heard either, I yet,

Laura Havener Hunsicker

Can question. about thinking you're with you trading book, Okay. us how your think And about here below then, help last just Paul, stock buybacks?

Paul Perrault

about thinking I'm Well, for buybacks. Carl

Carl Carlson

I think go I'm sorry, it's area. ahead. an attractive

Sorry.

Laura Havener Hunsicker

buybacks? about I No, you going just to Carl, thinking was say, how are

Carl Carlson

So this growth. and capital we're buying be stock, it's for we're an it at and using also place about thoughtful capital, back but attractive our point preserving to we're very

Operator

question next of KBW. O'Connell Our from Instructions] Chris [Operator comes

Christopher O'Connell

you at I but guys don't of a of that missed did. what the loan pipeline if think Did quarter the apologize end the it, in I I I just the was give categories? breakdown

Carl Carlson

don't we provide Yes, Chris? really pipelines.

Paul Perrault

hard too define. It's to

Carl Carlson

more active, down certainly from say, still in so we're are but Yes. previous pipelines I levels, the would very space... C&I

Christopher O'Connell

the it. abate guess going forward, that as how about how guys growth growth about to funding are are thinking changed? loan I outlook just a guys And organic thinking Got given about year? next bit the starting you you more pressures are thinking into

Carl Carlson

So million of of $XX kind million to we've loan always targeted $XXX growth.

that lot deposit on a target -- I for of still growth. is us think but a does quarter. And depend per that

as active. we're the deposits There's we'll customers grow So still talking loans. with. continuing are is long good be market that The as there, still very to

side. So it's again, the about deposit

Christopher O'Connell

Got of And are the balance on what kind it. at with right you you or most you at attractive now sheet where to type market as the different the terms of the of the this finding subsectors guys put and are sectors looking want in Fed dynamics growth point? tightening,

Paul Perrault

X now, in and very certainly the of of for displacement companies areas, as been are we that's opportunities we're and a with last amount takes of we're these The period somebody spring of very banks that's some are towards banking result they and and a the kind equipment harden active optimism in year. that why didn't in of the so choose all that C&I and now has the proposals. end providing lots that and have go as partly to But we attractive little conversations of up time fair of that a stuff

C&I of ], year Some a going And companies stand services, real in as on there's estate. of [ be care first but of treasury take until to things by customers but We'll needed, the there's it equipment feeling we'll these our estate. and like mostly. in that want the wait would on the air good not real in so for much

Christopher O'Connell

NIM -- pressure the you that around up X be for less if could And comments or that, see be in little bps you maybe 'XX? to better head next it. inflection should the Got margin to the potentially another take a quarter start point to that X and

Carl Carlson

that. our That's current ] [ suggest modeling

Operator

closing This to Mr. concludes I'd like any turn to the remarks. question-and-answer back our session. over for conference Perrault

Paul Perrault

thank you, you talking Thank forward to this we day. again Alex, next quarter. afternoon, joining you and and with will Good us look all for

Operator

joining Thank call. for you today's

lines. disconnect now may You your

Brookline Bancorp (BRKL) 26 Oct 232023 Q3 Earnings call transcript