Yahoo Finance Brookline Bancorp Inc (BRKL) Q1 2024 Earnings Call Transcript Highlights: Key Financial Metrics ...
Net Income: $14.7 million for the quarter.
Earnings Per Share (EPS): $0.16 per share.
Total Assets: Increased by approximately $161 million.
Loan Growth: Modest growth of $13 million across C&I, equipment finance, and consumer sectors.
Commercial Real Estate: Decline of $10 million from the previous quarter.
Deposit Growth: Customer deposits up by $81 million; broker deposits increased by $90 million.
Net Interest Margin: Compressed by nine basis points to 3.06%.
Net Interest Income: Declined by $2 million to $81.6 million.
Non-Interest Income: $6.3 million, down by $1.7 million from the previous quarter.
Operating Expenses: $61 million for the quarter, an increase of $1.8 million.
Provision for Credit Losses: $7.4 million, up by $3.6 million.
Net Charge-Offs: Totalled $8.8 million for the quarter.
Dividend: Quarterly dividend maintained at $0.135 per share.
Release Date: April 25, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Carl, just to follow up on your tax guidance, do you plan to replace those tax credits this quarter or it sounds like maybe not? A: Carl Carlson, Co-President, CFO and Strategy Officer - We're always looking at those opportunities, but I don't have any visibility into it right now.
Q: It looked like cash balances were up quite a bit this quarter, which I assume is a function of some deposit flows, but that I would assume is probably weighing on the margin a bit. How should we think about cash balances moving forward? A: Carl Carlson, Co-President, CFO and Strategy Officer - I think it will be fairly stable in that range of 10%.
Q: In your press release, you mentioned an uptick in expected losses in the equipment finance business. Which segment of the equipment finance business is driving that? A: Paul Perrault, CEO and Chairman - The biggest single category would be related to transport, particularly finance trucks for contractors for big package companies like FedEx, UPS, which are affected by Amazon developing their own delivery systems.
Q: You guys didn't buy back any stock this quarter. Given the pullback in your stock price today, do you feel like buybacks make some sense here, trading comfortably below tangible book? A: Carl Carlson, Co-President, CFO and Strategy Officer - We'll continue to evaluate that, but we have no expectation to do anything in the near term.
Q: The two office credits that were charged off, were those resolved, sold, or liquidated during the quarter? Was that just a charge-off ahead of an expected sale? A: Carl Carlson, Co-President, CFO and Strategy Officer - Those were note sales, one was on our balance sheet at the end of the quarter as a loan held for sale and was subsequently closed.
Q: How should we think about the margin here if it was a 3% to 3.05% guide? Just maybe borrowing, I'm curious, like what do you think gives you comfort here that the margin could bottom in the second quarter? A: Carl Carlson, Co-President, CFO and Strategy Officer - We model a lot of deposit migration, and I think in the first quarter we saw more deposit migration than we anticipated. Our models right now are coming in around the 3.03% range of margin.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
