Brookline Bancorp Announces Second Quarter Results

Net Income of $22.0 million, EPS of $0.25 Quarterly Dividend of $0.135 BOSTON, July 23, 2025 (GLOBE NEWSWIRE) -- Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced net income of $22.0 million, or $0.25 per basic and diluted share, for the second quarter of 2025, compared to net income of $19.1 million, or $0.21 per basic and diluted share, for the first quarter of 2025, and $16.4 million, or $0.18 per basic and diluted share, for the second quarter of 2024. The Company reported operating earnings after tax (non-GAAP) of $22.4 million, or $0.25 per basic and diluted share, for the second quarter of 2025, compared to operating earnings after tax (non-GAAP) of $20.0 million, or $0.22 per basic and diluted share, for the first quarter of 2025, and $17.0 million, or $0.19 per basic and diluted share, for the second quarter of 2024. Commenting on the second quarter’s performance, Mr. Perrault stated, “We are pleased to report solid earnings for the second quarter of the year led by growth in our C&I portfolio and deposits. Our dedicated team of bankers continue to provide exceptional service to the communities we serve. As a result of these efforts, our net interest margin expanded again this quarter despite intentional contraction in our commercial real estate portfolio." BALANCE SHEET Total assets at June 30, 2025 were $11.6 billion, representing an increase of $48.9 million from $11.5 billion at March 31, 2025, primarily driven by an increase in cash and cash equivalents partially offset by a reduction of loans and leases. Total assets decreased $66.5 million from June 30, 2024. At June 30, 2025, total loans and leases were $9.6 billion, representing a decrease of $60.3 million from March 31, 2025, and a decrease of $138.8 million from June 30, 2024. Total investment securities at June 30, 2025 decreased $15.7 million to $866.7 million from $882.4 million at March 31, 2025, and increased $10.3 million from $856.4 million at June 30, 2024. Total cash and cash equivalents at June 30, 2025 increased $149.2 million to $506.7 million from $357.5 million at March 31, 2025, and increased $163.6 million from $343.1 million at June 30, 2024. As of June 30, 2025, total investment securities and total cash and cash equivalents represented 11.9 percent of total assets, compared to 10.8 percent and 10.3 percent as of March 31, 2025 and June 30, 2024, respectively. Total deposits at June 30, 2025 increased $49.8 million to $9.0 billion from March 31, 2025, primarily driven by an increase of $58.3 million in customer deposits partially offset by a decline of $8.5 million in brokered deposits. Total deposits increased $224.2 million from $8.7 billion at June 30, 2024, primarily driven by an increase of $391.2 million in customer deposits partially offset by a decline of $167.0 million in brokered deposits. Total borrowed funds at June 30, 2025 remained flat at $1.2 billion compared to March 31, 2025, and decreased $274.4 million from $1.4 billion at June 30, 2024. The ratio of stockholders’ equity to total assets was 10.84 percent at June 30, 2025, as compared to 10.77 percent at March 31, 2025, and 10.30 percent at June 30, 2024. The ratio of tangible stockholders’ equity to tangible assets (non-GAAP) was 8.82 percent at June 30, 2025, as compared to 8.73 percent at March 31, 2025, and 8.23 percent at June 30, 2024. Tangible book value per common share (non-GAAP) increased $0.17 from $11.03 at March 31, 2025 to $11.20 at June 30, 2025, and increased $0.67 from $10.53 at June 30, 2024. NET INTEREST INCOME Net interest income increased $2.9 million to $88.7 million during the second quarter of 2025 from $85.8 million for the quarter ended March 31, 2025. The net interest margin increased 10 basis points to 3.32 percent for the three months ended June 30, 2025 from 3.22 percent for the three months ended March 31, 2025, primarily driven by lower funding costs and higher yields on loans and leases. NON-INTEREST INCOME Total non-interest income for the quarter ended June 30, 2025 increased $0.3 million to $6.0 million from $5.7 million for the quarter ended March 31, 2025. The increase was primarily driven by an increase of $0.2 million in gain on sales of loans and leases. PROVISION FOR CREDIT LOSSES The Company recorded a provision for credit losses of $7.0 million for the quarter ended June 30, 2025, compared to $6.0 million for the quarter ended March 31, 2025. The increase in provision was driven by a combination of continued stress in the Boston office sector as well as additional specific reserves on two large Eastern Funding credits. Total net charge-offs for the second quarter of 2025 were $5.1 million, compared to $7.6 million in the first quarter of 2025. The $5.1 million in net charge-offs was driven by two commercial real estate loans that were sold during the quarter resulting in a combined $3.5 million in net charge-offs. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis decreased to 21 basis points for the second quarter of 2025 from 31 basis points for the first quarter of 2025. The allowance for loan and lease losses represented 1.32 percent of total loans and leases at June 30, 2025, compared to 1.29 percent at March 31, 2025, and 1.25 percent at June 30, 2024. ASSET QUALITY The ratio of nonperforming loans and leases to total loans and leases was 0.65 percent at June 30, 2025, flat compared to March 31, 2025. Total nonaccrual loans and leases decreased $0.8 million to $62.3 million at June 30, 2025 from $63.1 million at March 31, 2025, driven by the sale of two commercial real estate loans. The ratio of nonperforming assets to total assets was 0.55 percent at June 30, 2025, a decrease from 0.56 percent at March 31, 2025. Total nonperforming assets decreased $0.4 million to $63.6 million at June 30, 2025 from $64.0 million at March 31, 2025. NON-INTEREST EXPENSE Non-interest expense for the quarter ended June 30, 2025 decreased $1.9 million to $58.1 million from $60.0 million for the quarter ended March 31, 2025. The decrease was primarily driven by decreases of $0.7 million in compensation and employee benefits expense, $0.5 million in merger and acquisition expense related to the previously announced proposed merger of the Company with Berkshire Hills Bancorp, Inc. ("Berkshire"), and $0.4 million in occupancy expense, partially offset by an increase of $0.5 million in advertising and marketing expense. PROVISION FOR INCOME TAXES The effective tax rate was 25.6 percent and 25.3 percent for the three and six months ended June 30, 2025 compared to 25.0 percent for the three months ended March 31, 2025 and 24.4 percent and 24.5 percent for the three and six months ended June 30, 2024. RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY The annualized return on average assets increased to 0.77 percent during the second quarter 2025 from 0.66 percent for the first quarter of 2025. The annualized return on average stockholders' equity increased to 7.04 percent during the second quarter of 2025 from 6.19 percent for the first quarter of 2025. The annualized return on average tangible stockholders’ equity (non-GAAP) increased to 8.85 percent for the second quarter of 2025 from 7.82 percent for the first quarter of 2025. DIVIDEND DECLARED The Company’s Board of Directors approved a dividend of $0.135 per share for the quarter ended June 30, 2025. The dividend will be paid on August 22, 2025 to stockholders of record on August 8, 2025. CONFERENCE CALL The Company will conduct a conference call/webcast at 1:30 PM Eastern Time on Thursday, July 24, 2025 to discuss the results for the quarter, business highlights and outlook. A copy of the Earnings Presentation is available on the Company’s website, www.brooklinebancorp.com. To listen to the call and view the Company’s Earnings Presentation, please join the call via https://events.q4inc.com/attendee/149362707. To listen to the call without access to the slides, interested parties may dial 833-470-1428 (United States) or 404-975-4839 (internationally) and ask for the Brookline Bancorp, Inc. conference call (Access Code 673409). A recorded playback of the call will be available for one week following the call on the Company’s website under “Investor Relations” or by dialing 866-813-9403 (United States) or 929-458-6194 (internationally) and entering the passcode: 916742. ABOUT BROOKLINE BANCORP, INC. Brookline Bancorp, Inc., a bank holding company with $11.6 billion in assets and branch locations in Massachusetts, Rhode Island, and the Lower Hudson Valley of New York State, is headquartered in Boston, Massachusetts and operates as the holding company for Brookline Bank, Bank Rhode Island, and PCSB Bank (the "banks"). The Company provides commercial and retail banking services, cash management and investment services to customers throughout Central New England and the Lower Hudson Valley of New York State. More information about Brookline Bancorp, Inc. and its banks can be found at the following websites: www.brooklinebank.com, www.bankri.com and www.pcsb.com. FORWARD-LOOKING STATEMENTS Certain statements contained in this press release that are not historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We may also make forward-looking statements in other documents we file with the Securities and Exchange Commission ("SEC"), in our annual reports to shareholders, in press releases and other written materials, and in oral statements made by our officers, directors or employees. You can identify forward looking statements by the use of the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “assume,” “outlook,” “will,” “should,” and other expressions that predict or indicate future events and trends and which do not relate to historical matters, including statements regarding the Company’s business, credit quality, financial condition, liquidity and results of operations. Forward-looking statements may differ, possibly materially, from what is included in this press release due to factors and future developments that are uncertain and beyond the scope of the Company’s control. These include, but are not limited to, the occurrence of any event, change or other circumstances that could give rise to the right of the Company or Berkshire to terminate the merger agreement; the outcome of any legal proceedings that may be instituted against Berkshire or Company; delays in completing the proposed transaction with Berkshire; the failure to obtain necessary regulatory approvals (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the proposed transaction), or to satisfy any of the other conditions to the proposed transaction on a timely basis or at all, including the ability of Berkshire and the Company to meet expectations regarding the timing, completion and accounting and tax treatments of the proposed transaction; the impact of certain restrictions during the pendency of the proposed transaction on the parties’ ability to pursue certain business opportunities and strategic transactions; diversion of management’s attention from ongoing business operations and opportunities; potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the proposed transaction; changes in interest rates; general economic conditions (including the impact of actual or threatened tariffs imposed by the U.S. and foreign governments, inflation, and concerns about liquidity) on a national basis or in the local markets in which the Company operates; ongoing turbulence in the capital and debt markets; competitive pressures from other financial institutions; changes in consumer behavior due to changing political, business and economic conditions, or legislative or regulatory initiatives; changes in the value of securities and other assets in the Company’s investment portfolio; increases in loan and lease default and charge-off rates; the adequacy of allowances for loan and lease losses; decreases in deposit levels that necessitate increases in borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity incidents, fraud, natural disasters, and future pandemics; changes in regulation; the possibility that future credit losses may be higher than currently expected due to changes in economic assumptions and adverse economic developments; the risk that goodwill and intangibles recorded in the Company’s financial statements will become impaired; and changes in assumptions used in making such forward-looking statements. Forward-looking statements involve risks and uncertainties which are difficult to predict. The Company’s actual results could differ materially from those projected in the forward-looking statements as a result of, among others, the risks outlined in the Company’s Annual Report on Form 10-K, as updated by its Quarterly Reports on Form 10-Q and other filings submitted to the SEC. The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made. BASIS OF PRESENTATION The Company's consolidated financial statements have been prepared in conformity with generally accepted accounting principles (“GAAP”) as set forth by the Financial Accounting Standards Board in its Accounting Standards Codification and through the rules and interpretive releases of the SEC under the authority of federal securities laws. Certain amounts previously reported have been reclassified to conform to the current period's presentation. NON-GAAP FINANCIAL MEASURES The Company uses certain non-GAAP financial measures, such as operating earnings after tax, operating earnings per common share, operating return on average assets, operating return on average tangible assets, operating return on average stockholders' equity, operating return on average tangible stockholders' equity, tangible book value per common share, tangible stockholders’ equity to tangible assets, return on average tangible assets (annualized) and return on average tangible stockholders' equity (annualized). These non-GAAP financial measures provide information for investors to effectively analyze financial trends of ongoing business activities, and to enhance comparability with peers across the financial services sector. A detailed reconciliation table of the Company's GAAP to the non-GAAP measures is attached. INVESTOR RELATIONS: Contact:Carl M. Carlson Brookline Bancorp, Inc. Co-President and Chief Financial and Strategy Officer (617) 425-5331 carl.carlson@brkl.com BROOKLINE BANCORP, INC AND SUBSIDIARIESSelected Financial Highlights (Unaudited) At and for the Three Months Ended June 30,2025 March 31,2025 December 31,2024 September 30,2024 June 30,2024 (Dollars in Thousands Except per Share Data)Earnings Data: Net interest income$88,685 $85,830 $84,988 $83,008 $80,001 Provision for credit losses on loans6,997 5,974 4,141 4,832 5,607 Provision (recovery) of credit losses on investments3 12 (104) (172) (39) Non-interest income5,970 5,660 6,587 6,348 6,396 Non-interest expense58,061 60,022 63,719 57,948 59,184 Income before provision for income taxes29,594 25,482 23,819 26,748 21,645 Net income22,026 19,100 17,536 20,142 16,372 Performance Ratios: Net interest margin (1)3.32% 3.22% 3.12% 3.07% 3.00%Interest-rate spread (1)2.57% 2.38% 2.35% 2.26% 2.14%Return on average assets (annualized)0.77% 0.66% 0.61% 0.70% 0.57%Return on average tangible assets (annualized) (non-GAAP)0.79% 0.68% 0.62% 0.72% 0.59%Return on average stockholders' equity (annualized)7.04% 6.19% 5.69% 6.63% 5.49%Return on average tangible stockholders' equity (annualized) (non-GAAP)8.85% 7.82% 7.21% 8.44% 7.04%Efficiency ratio (2)61.34% 65.60% 69.58% 64.85% 68.50% Per Common Share Data: Net income — Basic$0.25 $0.21 $0.20 $0.23 $0.18 Net income — Diluted0.25 0.21 0.20 0.23 0.18 Cash dividends declared0.135 0.135 0.135 0.135 0.135 Book value per share (end of period)14.08 13.92 13.71 13.81 13.48 Tangible book value per share (end of period) (non-GAAP)11.20 11.03 10.81 10.89 10.53 Stock price (end of period)10.55 10.90 11.80 10.09 8.35 Balance Sheet: Total assets$11,568,745 $11,519,869 $11,905,326 $11,676,721 $11,635,292 Total loans and leases9,582,374 9,642,722 9,779,288 9,755,236 9,721,137 Total deposits8,961,202 8,911,452 8,901,644 8,732,271 8,737,036 Total stockholders’ equity1,254,171 1,240,182 1,221,939 1,230,362 1,198,480 Asset Quality: Nonperforming assets$63,596 $64,021 $70,452 $72,821 $62,683 Nonperforming assets as a percentage of total assets0.55% 0.56% 0.59% 0.62% 0.54%Allowance for loan and lease losses$126,725 $124,145 $125,083 $127,316 $121,750 Allowance for loan and lease losses as a percentage of total loans and leases1.32% 1.29% 1.28% 1.31% 1.25%Net loan and lease charge-offs$5,127 $7,597 $7,252 $3,808 $8,387 Net loan and lease charge-offs as a percentage of average loans and leases (annualized)0.21% 0.31% 0.30% 0.16% 0.35% Capital Ratios: Stockholders’ equity to total assets10.84% 10.77% 10.26% 10.54% 10.30%Tangible stockholders’ equity to tangible assets (non-GAAP)8.82% 8.73% 8.27% 8.50% 8.23% (1) Calculated on a fully tax-equivalent basis. (2) Calculated as non-interest expense as a percentage of net interest income plus non-interest income. BROOKLINE BANCORP, INC. AND SUBSIDIARIESConsolidated Balance Sheets (Unaudited) June 30,2025 March 31,2025 December 31,2024 September 30,2024 June 30,2024 ASSETS(In Thousands Except Share Data)Cash and due from banks$87,386 $78,741 $64,673 $82,168 $60,067 Short-term investments 419,362 278,805 478,997 325,721 283,017 Total cash and cash equivalents 506,748 357,546 543,670 407,889 343,084 Investment securities available-for-sale 866,684 882,353 895,034 855,391 856,439 Total investment securities 866,684 882,353 895,034 855,391 856,439 Allowance for investment security losses (97) (94) (82) (186) (359)Net investment securities 866,587 882,259 894,952 855,205 856,080 Loans and leases: Commercial real estate loans 5,485,546 5,580,982 5,716,114 5,779,290 5,782,111 Commercial loans and leases 2,520,347 2,512,912 2,506,664 2,453,038 2,443,530 Consumer loans 1,576,481 1,548,828 1,556,510 1,522,908 1,495,496 Total loans and leases 9,582,374 9,642,722 9,779,288 9,755,236 9,721,137 Allowance for loan and lease losses (126,725) (124,145) (125,083) (127,316) (121,750)Net loans and leases 9,455,649 9,518,577 9,654,205 9,627,920 9,599,387 Restricted equity securities 66,481 67,537 83,155 82,675 78,963 Premises and equipment, net of accumulated depreciation 83,963 84,439 86,781 86,925 88,378 Right-of-use asset operating leases 42,415 44,144 43,527 41,934 35,691 Deferred tax asset 52,325 52,176 56,620 50,827 60,032 Goodwill 241,222 241,222 241,222 241,222 241,222 Identified intangible assets, net of accumulated amortization 14,600 16,030 17,461 19,162 20,830 Other real estate owned and repossessed assets 1,288 917 1,103 1,579 1,974 Other assets 237,467 255,022 282,630 261,383 309,651 Total assets$11,568,745 $11,519,869 $11,905,326 $11,676,721 $11,635,292 LIABILITIES AND STOCKHOLDERS' EQUITY Deposits: Demand checking accounts$1,726,933 $1,664,629 $1,692,394 $1,681,858 $1,638,378 NOW accounts 650,707 625,492 617,246 637,374 647,370 Savings accounts 1,795,761 1,793,852 1,721,247 1,736,989 1,735,857 Money market accounts 2,153,709 2,183,855 2,116,360 2,041,185 2,073,557 Certificate of deposit accounts 1,877,661 1,878,665 1,885,444 1,819,353 1,718,414 Brokered deposit accounts 756,431 764,959 868,953 815,512 923,460 Total deposits 8,961,202 8,911,452 8,901,644 8,732,271 8,737,036 Borrowed funds: Advances from the FHLB 934,669 957,848 1,355,926 1,345,003 1,265,079 Subordinated debentures and notes 84,397 84,362 84,328 84,293 84,258 Other borrowed funds 135,985 113,617 79,592 68,251 80,125 Total borrowed funds 1,155,051 1,155,827 1,519,846 1,497,547 1,429,462 Operating lease liabilities 43,528 45,330 44,785 43,266 37,102 Mortgagors’ escrow accounts 15,289 15,264 15,875 14,456 17,117 Reserve for unfunded credits 4,586 5,296 5,981 6,859 11,400 Accrued expenses and other liabilities 134,918 146,518 195,256 151,960 204,695 Total liabilities 10,314,574 10,279,687 10,683,387 10,446,359 10,436,812 Stockholders' equity: Common stock, $0.01 par value; 200,000,000 shares authorized; 96,998,075 shares issued, 96,998,075 shares issued, 96,998,075 shares issued, 96,998,075 shares issued, and 96,998,075 shares issued, respectively 970 970 970 970 970 Additional paid-in capital 904,697 903,696 902,584 901,562 904,775 Retained earnings 475,781 465,898 458,943 453,555 445,560 Accumulated other comprehensive income (39,378) (42,498) (52,882) (38,081) (61,693)Treasury stock, at cost; 7,039,136, 7,037,610, 7,019,384, 7,015,843, and 7,373,009 shares, respectively (87,899) (87,884) (87,676) (87,644) (91,132)Total stockholders' equity 1,254,171 1,240,182 1,221,939 1,230,362 1,198,480 Total liabilities and stockholders' equity$11,568,745 $11,519,869 $11,905,326 $11,676,721 $11,635,292 BROOKLINE BANCORP, INC. AND SUBSIDIARIESConsolidated Statements of Income (Unaudited) Three Months Ended June 30,2025 March 31,2025 December 31,2024 September 30,2024 June 30,2024 (In Thousands Except Share Data)Interest and dividend income: Loans and leases$143,933 $143,309 $147,436 $149,643 $145,585 Debt securities 6,691 6,765 6,421 6,473 6,480 Restricted equity securities 1,062 1,203 1,460 1,458 1,376 Short-term investments 2,386 2,451 2,830 1,986 1,914 Total interest and dividend income 154,072 153,728 158,147 159,560 155,355 Interest expense: Deposits 52,682 53,478 56,562 59,796 59,721 Borrowed funds 12,705 14,420 16,597 16,756 15,633 Total interest expense 65,387 67,898 73,159 76,552 75,354 Net interest income 88,685 85,830 84,988 83,008 80,001 Provision for credit losses on loans 6,997 5,974 4,141 4,832 5,607 Provision (recovery) of credit losses on investments 3 12 (104) (172) (39)Net interest income after provision for credit losses 81,685 79,844 80,951 78,348 74,433 Non-interest income: Deposit fees 2,472 2,361 2,297 2,353 3,001 Loan fees 472 393 439 464 702 Loan level derivative income (loss) (4) 70 1,115 — 106 Gain on sales of loans and leases held-for-sale 264 24 406 415 130 Other 2,766 2,812 2,330 3,116 2,457 Total non-interest income 5,970 5,660 6,587 6,348 6,396 Non-interest expense: Compensation and employee benefits 35,147 35,853 37,202 35,130 34,762 Occupancy 5,349 5,721 5,393 5,343 5,551 Equipment and data processing 6,841 7,012 6,780 6,831 6,732 Professional services 1,471 1,726 1,345 2,143 1,745 FDIC insurance 1,880 2,037 2,017 2,118 2,025 Advertising and marketing 1,371 868 1,303 859 1,504 Amortization of identified intangible assets 1,431 1,430 1,701 1,668 1,669 Merger and restructuring expense 439 971 3,378 — 823 Other 4,132 4,404 4,600 3,856 4,373 Total non-interest expense 58,061 60,022 63,719 57,948 59,184 Income before provision for income taxes 29,594 25,482 23,819 26,748 21,645 Provision for income taxes 7,568 6,382 6,283 6,606 5,273 Net income$22,026 $19,100 $17,536 $20,142 $16,372 Earnings per common share: Basic$0.25 $0.21 $0.20 $0.23 $0.18 Diluted$0.25 $0.21 $0.20 $0.23 $0.18 Weighted average common shares outstanding during the period: Basic 89,104,605 89,103,510 89,098,443 89,033,463 88,904,692 Diluted 89,612,781 89,567,747 89,483,964 89,319,611 89,222,315 Dividends paid per common share$0.135 $0.135 $0.135 $0.135 $0.135 BROOKLINE BANCORP, INC. AND SUBSIDIARIESConsolidated Statements of Income (Unaudited) Six Months Ended June 30, 2025 2024 (In Thousands Except Share Data)Interest and dividend income: Loans and leases$287,242 $290,850 Debt securities 13,456 13,358 Restricted equity securities 2,265 2,868 Short-term investments 4,837 3,738 Total interest and dividend income 307,800 310,814 Interest expense: Deposits 106,160 116,605 Borrowed funds 27,125 32,620 Total interest expense 133,285 149,225 Net interest income 174,515 161,589 Provision for credit losses on loans 12,971 13,030 Provision (credit) for credit losses on investments 15 (83)Net interest income after provision for credit losses 161,529 148,642 Non-interest income: Deposit Fees 4,833 5,898 Loan Fees 865 1,491 Loan level derivative income, net 66 543 Gain on sales of loans and leases held-for-sale 288 130 Other 5,578 4,618 Total non-interest income 11,630 12,680 Non-interest expense: Compensation and employee benefits 71,000 71,391 Occupancy 11,070 11,320 Equipment and data processing 13,853 13,763 Professional services 3,197 3,645 FDIC insurance 3,917 3,909 Advertising and marketing 2,239 3,078 Amortization of identified intangible assets 2,861 3,377 Merger and restructuring expense 1,410 823 Other 8,536 8,892 Total non-interest expense 118,083 120,198 Income before provision for income taxes 55,076 41,124 Provision for income taxes 13,950 10,087 Net income$41,126 $31,037 Earnings per common share: Basic$0.46 $0.35 Diluted$0.46 $0.35 Weighted average common shares outstanding during the period: Basic 89,104,060 88,899,635 Diluted 89,590,267 89,201,912 Dividends paid per common share$0.270 $0.270 BROOKLINE BANCORP, INC. AND SUBSIDIARIESAsset Quality Analysis (Unaudited) At and for the Three Months Ended June 30,2025 March 31,2025 December 31,2024 September 30,2024 June 30,2024 (Dollars in Thousands)NONPERFORMING ASSETS: Loans and leases accounted for on a nonaccrual basis: Commercial real estate mortgage$987 $10,842 $11,525 $11,595 $11,659 Multi-family mortgage 1,433 6,576 6,596 1,751 — Total commercial real estate loans 2,420 17,418 18,121 13,346 11,659 Commercial 8,687 7,415 14,676 15,734 16,636 Equipment financing 46,067 32,975 31,509 37,223 27,128 Total commercial loans and leases 54,754 40,390 46,185 52,957 43,764 Residential mortgage 3,572 3,962 3,999 3,862 4,495 Home equity 1,561 1,333 1,043 1,076 790 Other consumer 1 1 1 1 1 Total consumer loans 5,134 5,296 5,043 4,939 5,286 Total nonaccrual loans and leases 62,308 63,104 69,349 71,242 60,709 Other real estate owned 700 700 700 780 780 Other repossessed assets 588 217 403 799 1,194 Total nonperforming assets$63,596 $64,021 $70,452 $72,821 $62,683 Loans and leases past due greater than 90 days and still accruing$24,899 $3,009 $811 $16,091 $4,994 Nonperforming loans and leases as a percentage of total loans and leases 0.65% 0.65% 0.71% 0.73% 0.62%Nonperforming assets as a percentage of total assets 0.55% 0.56% 0.59% 0.62% 0.54% PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES: Allowance for loan and lease losses at beginning of period$124,145 $125,083 $127,316 $121,750 $120,124 Charge-offs (5,601) (9,073) (8,414) (4,183) (8,823)Recoveries 474 1,476 1,162 375 436 Net charge-offs (5,127) (7,597) (7,252) (3,808) (8,387)Provision for loan and lease losses excluding unfunded commitments * 7,707 6,659 5,019 9,374 10,013 Allowance for loan and lease losses at end of period$126,725 $124,145 $125,083 $127,316 $121,750 Allowance for loan and lease losses as a percentage of total loans and leases 1.32% 1.29% 1.28% 1.31% 1.25% NET CHARGE-OFFS: Commercial real estate loans$3,524 $— $— $— $3,819 Commercial loans and leases 1,640 7,647 7,257 3,797 4,571 Consumer loans (37) (50) (5) 11 (3)Total net charge-offs$5,127 $7,597 $7,252 $3,808 $8,387 Net loan and lease charge-offs as a percentage of average loans and leases (annualized) 0.21% 0.31% 0.30% 0.16% 0.35% *Provision for loan and lease losses does not include (credit) provision of $(0.7 million), $(0.7 million), $(0.9 million), $(4.5 million), and $(4.4 million) for credit losses on unfunded commitments during the three months ended June 30, 2025, March 31, 2025, December 31, 2024, September 30, 2024, and June 30, 2024, respectively. BROOKLINE BANCORP, INC. AND SUBSIDIARIESAverage Yields / Costs (Unaudited) Three Months Ended June 30,2025 March 31,2025 June 30,2024 Average Balance Interest (1) Average Yield/ Cost Average Balance Interest (1) Average Yield/ Cost Average Balance Interest (1) Average Yield/ Cost (Dollars in Thousands)Assets: Interest-earning assets: Investments: Debt securities (2)$874,212 $6,752 3.09% $888,913 $6,814 3.07% $846,469 $6,510 3.08%Restricted equity securities (2) 65,724 1,062 6.46% 69,784 1,204 6.90% 71,696 1,375 7.67%Short-term investments 215,982 2,386 4.42% 202,953 2,451 4.83% 143,800 1,914 5.33%Total investments 1,155,918 10,200 3.53% 1,161,650 10,469 3.60% 1,061,965 9,799 3.69%Loans and Leases: Commercial real estate loans (3) 5,533,208 77,136 5.51% 5,651,390 77,243 5.47% 5,754,901 81,565 5.61%Commercial loans (3) 1,286,908 20,757 6.38% 1,237,078 19,698 6.37% 1,069,154 17,672 6.54%Equipment financing (3) 1,240,128 25,069 8.09% 1,281,425 25,965 8.11% 1,374,217 26,255 7.64%Consumer loans (3) 1,556,254 21,437 5.51% 1,548,973 20,861 5.41% 1,488,587 20,291 5.46%Total loans and leases 9,616,498 144,399 6.01% 9,718,866 143,767 5.92% 9,686,859 145,783 6.02%Total interest-earning assets 10,772,416 154,599 5.74% 10,880,516 154,236 5.67% 10,748,824 155,582 5.79%Non-interest-earning assets 630,518 662,814 704,570 Total assets$11,402,934 $11,543,330 $11,453,394 Liabilities and Stockholders' Equity: Interest-bearing liabilities: Deposits: NOW accounts$637,786 1,034 0.65% $628,346 1,005 0.65% $659,351 1,111 0.68%Savings accounts 1,780,838 10,692 2.41% 1,743,688 10,173 2.37% 1,731,388 11,874 2.76%Money market accounts 2,189,373 13,990 2.56% 2,187,581 13,587 2.52% 2,026,780 15,520 3.08%Certificates of deposit 1,879,749 18,437 3.93% 1,886,386 19,593 4.21% 1,699,510 18,717 4.43%Brokered deposit accounts 748,205 8,529 4.57% 767,275 9,120 4.82% 958,146 12,499 5.25%Total interest-bearing deposits 7,235,951 52,682 2.92% 7,213,276 53,478 3.01% 7,075,175 59,721 3.39%Borrowings Advances from the FHLB 904,399 10,422 4.56% 1,007,508 11,847 4.70% 1,049,609 12,894 4.86%Subordinated debentures and notes 84,380 1,718 8.14% 84,345 1,701 8.07% 84,241 1,375 6.53%Other borrowed funds 46,086 565 4.93% 71,462 872 4.95% 103,753 1,364 5.29%Total borrowings 1,034,865 12,705 4.86% 1,163,315 14,420 4.96% 1,237,603 15,633 5.00%Total interest-bearing liabilities 8,270,816 65,387 3.17% 8,376,591 67,898 3.29% 8,312,778 75,354 3.65%Non-interest-bearing liabilities: Demand checking accounts 1,654,594 1,680,527 1,646,869 Other non-interest-bearing liabilities 225,469 251,011 300,362 Total liabilities 10,150,879 10,308,129 10,260,009 Stockholders’ equity 1,252,055 1,235,201 1,193,385 Total liabilities and equity$11,402,934 $11,543,330 $11,453,394 Net interest income (tax-equivalent basis) /Interest-rate spread (4) 89,212 2.57% 86,338 2.38% 80,228 2.14%Less adjustment of tax-exempt income 527 508 227 Net interest income $88,685 $85,830 $80,001 Net interest margin (5) 3.32% 3.22% 3.00% (1) Tax-exempt income on debt securities, equity securities and revenue bonds included in commercial real estate loans is included on a tax-equivalent basis.(2) Average balances include unrealized gains (losses) on investment securities. Dividend payments may not be consistent and average yield on equity securities may vary from month to month.(3) Loans on nonaccrual status are included in the average balances.(4) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.(5) Net interest margin represents net interest income (tax-equivalent basis) divided by average interest-earning assets on an actual/actual basis. BROOKLINE BANCORP, INC. AND SUBSIDIARIESAverage Yields / Costs (Unaudited) Six Months Ended June 30, 2025 June 30, 2024 AverageBalance Interest (1) Average Yield/Cost AverageBalance Interest (1) Average Yield/Cost (Dollars in Thousands)Assets: Interest-earning assets: Investments: Debt securities (2)$881,522 $13,566 3.08% $869,848 $13,437 3.09%Restricted equity securities (2) 67,743 2,266 6.69% 74,015 2,868 7.75%Short-term investments 209,503 4,837 4.62% 137,284 3,738 5.45%Total investments 1,158,768 20,669 3.57% 1,081,147 20,043 3.71%Loans and Leases: Commercial real estate loans (3) 5,591,973 154,379 5.49% 5,758,318 162,614 5.59%Commercial loans (3) 1,262,130 40,455 6.38% 1,047,810 35,179 6.64%Equipment financing (3) 1,260,663 51,034 8.10% 1,374,322 53,150 7.73%Consumer loans (3) 1,552,633 42,298 5.46% 1,485,702 40,269 5.43%Total loans and leases 9,667,399 288,166 5.96% 9,666,152 291,212 6.03%Total interest-earning assets 10,826,167 308,835 5.71% 10,747,299 311,255 5.79%Non-interest-earning assets 646,577 684,343 Total assets$11,472,744 $11,431,642 Liabilities and Stockholders' Equity: Interest-bearing liabilities: Deposits: NOW accounts$633,092 2,039 0.65% $665,632 2,372 0.72%Savings accounts 1,762,366 20,865 2.39% 1,712,804 23,226 2.73%Money market accounts 2,188,482 27,577 2.54% 2,051,542 31,474 3.09%Certificates of deposit 1,883,049 38,030 4.07% 1,661,814 35,389 4.28%Brokered deposit accounts 757,687 17,649 4.70% 927,465 24,144 5.23%Total interest-bearing deposits 7,224,676 106,160 2.96% 7,019,257 116,605 3.34%Borrowings Advances from the FHLB 955,669 22,269 4.63% 1,107,071 27,527 4.92%Subordinated debentures and notes 84,363 3,419 8.11% 84,223 2,752 6.54%Other borrowed funds 58,704 1,437 4.94% 98,406 2,341 4.78%Total borrowings 1,098,736 27,125 4.91% 1,289,700 32,620 5.00%Total interest-bearing liabilities 8,323,412 133,285 3.23% 8,308,957 149,225 3.61%Non-interest-bearing liabilities: Demand checking accounts 1,667,489 1,635,690 Other non-interest-bearing liabilities 238,169 289,351 Total liabilities 10,229,070 10,233,998 Stockholders’ equity 1,243,674 1,197,644 Total liabilities and equity$11,472,744 $11,431,642 Net interest income (tax-equivalent basis) /Interest-rate spread (4) 175,550 2.48% 162,030 2.18%Less adjustment of tax-exempt income 1,035 441 Net interest income $174,515 $161,589 Net interest margin (5) 3.27% 3.03% (1) Tax-exempt income on debt securities, equity securities and revenue bonds included in commercial real estate loans is included on a tax-equivalent basis.(2) Average balances include unrealized gains (losses) on investment securities. Dividend payments may not be consistent and average yield on equity securities may vary from month to month.(3) Loans on nonaccrual status are included in the average balances.(4) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.(5) Net interest margin represents net interest income (tax-equivalent basis) divided by average interest-earning assets on an actual/actual basis. BROOKLINE BANCORP, INC. AND SUBSIDIARIESNon-GAAP Financial Information (Unaudited) At and for the Three Months EndedMarch 31, At and for the Six Months Ended June 30, 2025 2024 2025 2024 Reconciliation Table - Non-GAAP Financial Information(Dollars in Thousands Except Share Data) (Dollars in Thousands Except Share Data) Reported Pretax Income$29,594 $21,645 $55,076 $41,124 Add: Merger and restructuring expense 439 823 1,410 823 Operating Pretax Income$30,033 $22,468 $56,486 $41,947 Effective tax rate 25.3% 24.4% 24.8% 24.5%Provision for income taxes 7,590 5,473 14,008 10,289 Operating earnings after tax$22,443 $16,995 $42,478 $31,658 Operating earnings per common share: Basic$0.25 $0.19 $0.48 $0.36 Diluted$0.25 $0.19 $0.47 $0.35 Weighted average common shares outstanding during the period: Basic 89,104,605 88,904,692 89,104,060 88,899,635 Diluted 89,612,781 89,222,315 89,590,267 89,201,912 Return on average assets * 0.77% 0.57% 0.72% 0.54%Add: Merger and restructuring expense (after-tax) * 0.01% 0.02% 0.02% 0.01%Operating return on average assets * 0.78% 0.59% 0.74% 0.55% Return on average tangible assets * 0.79% 0.59% 0.73% 0.56%Add: Merger and restructuring expense (after-tax) * 0.01% 0.02% 0.02% 0.01%Operating return on average tangible assets * 0.80% 0.61% 0.75% 0.57% Return on average stockholders' equity * 7.04% 5.49% 6.61% 5.18%Add: Merger and restructuring expense (after-tax) * 0.10% 0.21% 0.17% 0.10%Operating return on average stockholders' equity * 7.14% 5.70% 6.78% 5.28% Return on average tangible stockholders' equity * 8.85% 7.04% 8.34% 6.65%Add: Merger and restructuring expense (after-tax) * 0.13% 0.27% 0.21% 0.13%Operating return on average tangible stockholders' equity * 8.98% 7.31% 8.55% 6.78% * Ratios at and for the three months and six months ended are annualized. At and for the Three Months Ended June 30,2025March 31,2025 December 31,2024 September 30,2024 June 30,2024 (Dollars in Thousands) Net income, as reported$22,026 $19,100 $17,536 $20,142 $16,372 Average total assets$11,402,934 $11,543,330 $11,580,572 $11,451,338 $11,453,394 Less: Average goodwill and average identified intangible assets, net 256,508 257,941 259,496 261,188 262,859 Average tangible assets$11,146,426 $11,285,389 $11,321,076 $11,190,150 $11,190,535 Return on average tangible assets (annualized) 0.79 % 0.68 % 0.62 % 0.72 % 0.59 % Average total stockholders’ equity$1,252,055 $1,235,201 $1,232,527 $1,216,037 $1,193,385 Less: Average goodwill and average identified intangible assets, net 256,508 257,941 259,496 261,188 262,859 Average tangible stockholders’ equity$995,547 $977,260 $973,031 $954,849 $930,526 Return on average tangible stockholders’ equity (annualized) 8.85 % 7.82 % 7.21 % 8.44 % 7.04 % Total stockholders’ equity$1,254,171 $1,240,182 $1,221,939 $1,230,362 $1,198,480 Less: Goodwill 241,222 241,222 241,222 241,222 241,222 Identified intangible assets, net 14,600 16,030 17,461 19,162 20,830 Tangible stockholders' equity$998,349 $982,930 $963,256 $969,978 $936,428 Total assets$11,568,745 $11,519,869 $11,905,326 $11,676,721 $11,635,292 Less: Goodwill 241,222 241,222 241,222 241,222 241,222 Identified intangible assets, net 14,600 16,030 17,461 19,162 20,830 Tangible assets$11,312,923 $11,262,617 $11,646,643 $11,416,337 $11,373,240 Tangible stockholders’ equity to tangible assets 8.82 % 8.73 % 8.27 % 8.50 % 8.23 % Tangible stockholders' equity$998,349 $982,930 $963,256 $969,978 $936,428 Number of common shares issued 96,998,075 96,998,075 96,998,075 96,998,075 96,998,075 Less: Treasury shares 7,039,136 7,037,610 7,019,384 7,015,843 7,373,009 Unvested restricted shares 854,334 855,860 880,248 883,789 713,443 Number of common shares outstanding 89,104,605 89,104,605 89,098,443 89,098,443 88,911,623 Tangible book value per common share$ 11.20 $ 11.03 $ 10.81 $ 10.89 $ 10.53 PDF available: http://ml.globenewswire.com/Resource/Download/713b7b8a-a804-4b26-a467-f10b0d266b1b

Brookline Bancorp Announces Second Quarter Results

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