The following is a summary of the Brookline Bancorp, Inc. (BRKL) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Brookline Bancorp reported net income of $20.1 million and earnings per share of $0.23 for Q3 2024.

• Loans grew by $34 million and customer deposits increased by $103 million, indicating an improvement in customer base and lending activity.

• Net interest margin (NIM) increased by 7 basis points, with further improvements expected. NIM for the month of September was 313 basis points.

• Noninterest income remained flat at $6.3 million due to a balance between lower deposit fees and higher other income sources.

• Operating expenses were down, reducing to $57.9 million in comparison to $59.2 million in the previous quarter.

Business Progress:

• Brookline Bancorp continued to optimize its loan portfolio, with a focus shifting from equipment finance and commercial real estate to more stable and profitable segments such as C&I and consumer loans. Specific movements include the reduction in the specialty vehicle loans, which are now in runoff mode.

• The bank anticipates a moderate growth in loans and deposits through 2024 into 2025, aiming for a loan portfolio increase of 4-5% in 2025 and deposit growth of 4-5%.

• There's an ongoing adjustment in the product mix within their wealth management offerings to more balanced portfolios from primarily treasury-focused products.

Opportunities:

• The normalizing economic environment and interest rates present an opportunity for the bank's net interest margin to improve further as market conditions stabilize.

• The bank's strategic hire of personnel specializing in institutional-type lending indicates an opportunity for growth in new market segments such as private schools and colleges.

Risks:

• Mentioned nonperforming loans related to specialties like tow vehicles and equipment finance show ongoing risks in specific niche portfolios, with a particular focus on the specialty vehicles category which continues to pose challenges in terms of loan performance.

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