Banker & Tradesman file photo
Brookline Bank’s parent company saw its net income decrease year-over-year while deposits and total assets increased.
Brookline Bancorp reported a net income of $68.7 million in its fourth-quarter earnings call Friday, compared to $75 million for 2023. Costs related to the merger of equals between Brookline Bank and Berkshire Bank played a role in driving up expenses.
Still, the parent company of Brookline Bank, Bank Rhode Island and New York State’s PCSB Bank saw total assets increase to $11.9 billion, up $523.1 million from $11.4 billion on Dec. 31, 2023.
Total deposits increased to $8.9 billion from $8.7 billion, consisting of a $115.9 million increase in customer deposits and a $53.4 million increase in brokered deposits from the prior quarter. Deposits increased from $8.5 billion the prior year, similarly driven by growth in customer deposits.
“Brookline Bancorp had an excellent year in 2024. We finished the year with solid deposit and loan growth and are well positioned as we look forward to 2025,” Paul Perrault, chairman and CEO of Brookline Bancorp told investors. “We are looking forward to 2025 and our recently announced strategic merger with Berkshire Hills Bancorp. I would like to recognize the contributions of our employees in contributing to our growth and success in 2024. Our employees exemplify the Brookline Bancorp culture of providing excellent customer service.”
Total net charge-offs for the fourth quarter of 2024 were $7.3 million, compared to $3.8 million in the third quarter of 2024. The $7.3 million in net charge-offs was driven by one large $5.1 million charge-off in equipment financing, which was previously reserved for.
Brookline also has a criticized and classified loan that’s given the bank a $10.8 million exposure. After nearly a year of negotiations with the sponsor and participant bank, the downtown Boston office building in question is in negotiations to be sold in an arm’s-length-transaction at approximately $170 per square foot. Brookline executives noted that the unspecified buyer is a well-known developer in the Boston area with a successful track record of office-to-residential conversions.
Brookline executives when asked by stock analysts stated that they expect to take a charge off but that the charge off has been reserved for.
