Brookline Bancorp Announces First Quarter Results

Source: Nasdaq GlobeNewswire / 23 Apr 2025 15:05:26 America/Chicago

Net Income of $19.1 million, EPS of $0.21

Operating Earnings of $20.0 million, Operating EPS of $0.22

Quarterly Dividend of $0.135

BOSTON, April 23, 2025 (GLOBE NEWSWIRE) -- Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced net income of $19.1 million, or $0.21 per basic and diluted share, for the first quarter of 2025, compared to net income of $17.5 million, or $0.20 per basic and diluted share, for the fourth quarter of 2024, and $14.7 million, or $0.16 per basic and diluted share, for the first quarter of 2024. The Company reported operating earnings after tax (non-GAAP) of $20.0 million, or $0.22 per basic and diluted share, for the first quarter of 2025, compared to operating earnings after tax (non-GAAP) of $20.7 million, or $0.23 per basic and diluted share, for the fourth quarter of 2024, and $14.7 million, or $0.16 per basic and diluted share, for the first quarter of 2024.

Commenting on the first quarter’s performance, Mr. Perrault stated, “We are pleased to report solid earnings for the first quarter of the year. Despite external economic headwinds, our bankers continue to perform well and grow deposits. The contraction in our loan portfolios is intentional as we reduce our commercial real estate exposure while increasing our participation in the C&I markets.”

BALANCE SHEET

Total assets at March 31, 2025 were $11.5 billion, representing a decrease of $385.5 million from $11.9 billion at December 31, 2024, primarily driven by a reduction of cash and cash equivalents and loans and leases. Total assets decreased $22.9 million from March 31, 2024.

At March 31, 2025, total loans and leases were $9.6 billion, representing a decrease of $136.6 million from December 31, 2024, and a decrease of $12.4 million from March 31, 2024.

Total investment securities at March 31, 2025 decreased $12.7 million to $882.4 million from $895.0 million at December 31, 2024, and increased $16.6 million from $865.8 million at March 31, 2024. Total cash and cash equivalents at March 31, 2025 decreased $186.1 million to $357.5 million from $543.7 million at December 31, 2024, and increased $55.7 million from $301.9 million at March 31, 2024. As of March 31, 2025, total investment securities and total cash and cash equivalents represented 10.8 percent of total assets, compared to 12.1 percent and 10.1 percent as of December 31, 2024 and March 31, 2024, respectively.

Total deposits at March 31, 2025 increased $9.8 million to $8.9 billion from December 31, 2024, primarily driven by an increase of $113.8 million in customer deposits partially offset by a decline of $104.0 million in brokered deposits. Total deposits increased $192.8 million from $8.7 billion at March 31, 2024, primarily driven by an increase of $398.8 million in customer deposits partially offset by a decline of $206.0 million in brokered deposits.

Total borrowed funds at March 31, 2025 decreased $364.0 million to $1.2 billion from December 31, 2024, and decreased $206.1 million from $1.4 billion at March 31, 2024.

The ratio of stockholders’ equity to total assets was 10.77 percent at March 31, 2025, as compared to 10.26 percent at December 31, 2024, and 10.35 percent at March 31, 2024. The ratio of tangible stockholders’ equity to tangible assets (non-GAAP) was 8.73 percent at March 31, 2025, as compared to 8.27 percent at December 31, 2024, and 8.25 percent at March 31, 2024. Tangible book value per common share (non-GAAP) increased $0.22 from $10.81 at December 31, 2024 to $11.03 at March 31, 2025, and increased $0.56 from $10.47 at March 31, 2024.

NET INTEREST INCOME

Net interest income increased $0.8 million to $85.8 million during the first quarter of 2025 from $85.0 million for the quarter ended December 31, 2024. The net interest margin increased 10 basis points to 3.22 percent for the three months ended March 31, 2025 from 3.12 percent for the three months ended December 31, 2024, primarily driven by lower funding costs partially offset by lower yields on loans and leases.

NON-INTEREST INCOME

Total non-interest income for the quarter ended March 31, 2025 decreased $0.9 million to $5.7 million from $6.6 million for the quarter ended December 31, 2024. The decrease was primarily driven by a decline of $1.0 million in loan level derivative income, net.

PROVISION FOR CREDIT LOSSES

The Company recorded a provision for credit losses of $6.0 million for the quarter ended March 31, 2025, compared to $4.1 million for the quarter ended December 31, 2024. The increase in provision was largely driven by deterioration in a single commercial credit that required a specific reserve.

Total net charge-offs for the first quarter of 2025 were $7.6 million, compared to $7.3 million in the fourth quarter of 2024. The $7.6 million in net charge-offs was driven by one large $7.1 million charge-off in commercial loans, the majority of which was previously reserved for. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis increased to 31 basis points for the first quarter of 2025 from 30 basis points for the fourth quarter of 2024.

The allowance for loan and lease losses represented 1.29 percent of total loans and leases at March 31, 2025, compared to 1.28 percent at December 31, 2024, and 1.24 percent at March 31, 2024.

ASSET QUALITY

The ratio of nonperforming loans and leases to total loans and leases was 0.65 percent at March 31, 2025, a decrease from 0.71 percent at December 31, 2024. Total nonaccrual loans and leases decreased $6.2 million to $63.1 million at March 31, 2025 from $69.3 million at December 31, 2024. The ratio of nonperforming assets to total assets was 0.56 percent at March 31, 2025, a decrease from 0.59 percent at December 31, 2024. Total nonperforming assets decreased $6.4 million to $64.0 million at March 31, 2025 from $70.5 million at December 31, 2024.

NON-INTEREST EXPENSE

Non-interest expense for the quarter ended March 31, 2025 decreased $3.7 million to $60.0 million from $63.7 million for the quarter ended December 31, 2024. The decrease was primarily driven by a decrease of $2.4 million in merger and acquisition expense related to the previously announced proposed merger of the Company with Berkshire Hills Bancorp, Inc. ("Berkshire"), and a decrease of $1.3 million in compensation and employee benefits expense.

PROVISION FOR INCOME TAXES

The effective tax rate was 25.0 percent for the three months ended March 31, 2025 compared to 26.4 percent for the three months ended December 31, 2024 and 24.7 percent for the three months ended March 31, 2024.

RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

The annualized return on average assets increased to 0.66 percent during the first quarter 2025 from 0.61 percent for the fourth quarter of 2024.

The annualized return on average stockholders' equity increased to 6.19 percent during the first quarter of 2025 from 5.69 percent for the fourth quarter of 2024. The annualized return on average tangible stockholders’ equity (non-GAAP) increased to 7.82 percent for the first quarter of 2025 from 7.21 percent for the fourth quarter of 2024.

DIVIDEND DECLARED

The Company’s Board of Directors approved a dividend of $0.135 per share for the quarter ended March 31, 2025. The dividend will be paid on May 23, 2025 to stockholders of record on May 9, 2025.

CONFERENCE CALL

The Company will conduct a conference call/webcast at 1:30 PM Eastern Time on Thursday, April 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/955891780. 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 941481). 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:324302.

ABOUT BROOKLINE BANCORP, INC.

Brookline Bancorp, Inc., a bank holding company with $11.5 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 stockholder approvals, 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 recently imposed tariffs by the U.S. Administration 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 SUBSIDIARIES
Selected Financial Highlights (Unaudited)

	At and for the Three Months Ended
	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
	(Dollars In Thousands Except per Share Data)
Earnings Data:
Net interest income	$	85,830		$	84,988		$	83,008		$	80,001		$	81,588
Provision for credit losses on loans	5,974			4,141			4,832			5,607			7,423
Provision (recovery) of credit losses on investments	12			(104		)	(172		)	(39		)	(44		)
Non-interest income	5,660			6,587			6,348			6,396			6,284
Non-interest expense	60,022			63,719			57,948			59,184			61,014
Income before provision for income taxes	25,482			23,819			26,748			21,645			19,479
Net income	19,100			17,536			20,142			16,372			14,665

Performance Ratios:
Net interest margin (1)	3.22		%	3.12		%	3.07		%	3.00		%	3.06		%
Interest-rate spread (1)	2.38		%	2.35		%	2.26		%	2.14		%	2.21		%
Return on average assets (annualized)	0.66		%	0.61		%	0.70		%	0.57		%	0.51		%
Return on average tangible assets (annualized) (non-GAAP)	0.68		%	0.62		%	0.72		%	0.59		%	0.53		%
Return on average stockholders' equity (annualized)	6.19		%	5.69		%	6.63		%	5.49		%	4.88		%
Return on average tangible stockholders' equity (annualized) (non-GAAP)	7.82		%	7.21		%	8.44		%	7.04		%	6.26		%
Efficiency ratio (2)	65.60		%	69.58		%	64.85		%	68.50		%	69.44		%

Per Common Share Data:
Net income — Basic	$	0.21		$	0.20		$	0.23		$	0.18		$	0.16
Net income — Diluted	0.21			0.20			0.23			0.18			0.16
Cash dividends declared	0.135			0.135			0.135			0.135			0.135
Book value per share (end of period)	13.92			13.71			13.81			13.48			13.43
Tangible book value per share (end of period) (non-GAAP)	11.03			10.81			10.89			10.53			10.47
Stock price (end of period)	10.90			11.80			10.09			8.35			9.96

Balance Sheet:
Total assets	$	11,519,869		$	11,905,326		$	11,676,721		$	11,635,292		$	11,542,731
Total loans and leases	9,642,722			9,779,288			9,755,236			9,721,137			9,655,086
Total deposits	8,911,452			8,901,644			8,732,271			8,737,036			8,718,653
Total stockholders’ equity	1,240,182			1,221,939			1,230,362			1,198,480			1,194,231

Asset Quality:
Nonperforming assets	$	64,021		$	70,452		$	72,821		$	62,683		$	42,489
Nonperforming assets as a percentage of total assets	0.56		%	0.59		%	0.62		%	0.54		%	0.37		%
Allowance for loan and lease losses	$	124,145		$	125,083		$	127,316		$	121,750		$	120,124
Allowance for loan and lease losses as a percentage of total loans and leases	1.29		%	1.28		%	1.31		%	1.25		%	1.24		%
Net loan and lease charge-offs	$	7,597		$	7,252		$	3,808		$	8,387		$	8,781
Net loan and lease charge-offs as a percentage of average loans and leases (annualized)	0.31		%	0.30		%	0.16		%	0.35		%	0.36		%

Capital Ratios:
Stockholders’ equity to total assets	10.77		%	10.26		%	10.54		%	10.30		%	10.35		%
Tangible stockholders’ equity to tangible assets (non-GAAP)	8.73		%	8.27		%	8.50		%	8.23		%	8.25		%

(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 SUBSIDIARIES
Consolidated Balance Sheets (Unaudited)

	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
ASSETS	(In Thousands Except Share Data)
Cash and due from banks	$	78,741		$	64,673		$	82,168		$	60,067		$	45,708
Short-term investments		278,805			478,997			325,721			283,017			256,178
Total cash and cash equivalents		357,546			543,670			407,889			343,084			301,886
Investment securities available-for-sale		882,353			895,034			855,391			856,439			865,798
Total investment securities		882,353			895,034			855,391			856,439			865,798
Allowance for investment security losses		(94	)		(82	)		(186	)		(359	)		(398	)
Net investment securities		882,259			894,952			855,205			856,080			865,400
Loans and leases held-for-sale		—			—			—			—			6,717
Loans and leases:
Commercial real estate loans		5,580,982			5,716,114			5,779,290			5,782,111			5,755,239
Commercial loans and leases		2,512,912			2,506,664			2,453,038			2,443,530			2,416,904
Consumer loans		1,548,828			1,556,510			1,522,908			1,495,496			1,482,943
Total loans and leases		9,642,722			9,779,288			9,755,236			9,721,137			9,655,086
Allowance for loan and lease losses		(124,145	)		(125,083	)		(127,316	)		(121,750	)		(120,124	)
Net loans and leases		9,518,577			9,654,205			9,627,920			9,599,387			9,534,962
Restricted equity securities		67,537			83,155			82,675			78,963			74,709
Premises and equipment, net of accumulated depreciation		84,439			86,781			86,925			88,378			89,707
Right-of-use asset operating leases		44,144			43,527			41,934			35,691			33,133
Deferred tax asset		52,176			56,620			50,827			60,032			60,484
Goodwill		241,222			241,222			241,222			241,222			241,222
Identified intangible assets, net of accumulated amortization		16,030			17,461			19,162			20,830			22,499
Other real estate owned and repossessed assets		917			1,103			1,579			1,974			1,817
Other assets		255,022			282,630			261,383			309,651			310,195
Total assets	$	11,519,869		$	11,905,326		$	11,676,721		$	11,635,292		$	11,542,731
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand checking accounts	$	1,664,629		$	1,692,394		$	1,681,858		$	1,638,378		$	1,629,371
NOW accounts		625,492			617,246			637,374			647,370			654,748
Savings accounts		1,793,852			1,721,247			1,736,989			1,735,857			1,727,893
Money market accounts		2,183,855			2,116,360			2,041,185			2,073,557			2,065,569
Certificate of deposit accounts		1,878,665			1,885,444			1,819,353			1,718,414			1,670,147
Brokered deposit accounts		764,959			868,953			815,512			923,460			970,925
Total deposits		8,911,452			8,901,644			8,732,271			8,737,036			8,718,653
Borrowed funds:
Advances from the FHLB		957,848			1,355,926			1,345,003			1,265,079			1,150,153
Subordinated debentures and notes		84,362			84,328			84,293			84,258			84,223
Other borrowed funds		113,617			79,592			68,251			80,125			127,505
Total borrowed funds		1,155,827			1,519,846			1,497,547			1,429,462			1,361,881
Operating lease liabilities		45,330			44,785			43,266			37,102			34,235
Mortgagors’ escrow accounts		15,264			15,875			14,456			17,117			16,245
Reserve for unfunded credits		5,296			5,981			6,859			11,400			15,807
Accrued expenses and other liabilities		146,518			195,256			151,960			204,695			201,679
Total liabilities		10,279,687			10,683,387			10,446,359			10,436,812			10,348,500
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		903,696			902,584			901,562			904,775			903,726
Retained earnings		465,898			458,943			453,555			445,560			441,285
Accumulated other comprehensive income		(42,498	)		(52,882	)		(38,081	)		(61,693	)		(60,841	)
Treasury stock, at cost;
7,037,610, 7,019,384, 7,015,843, 7,373,009, and 7,354,399 shares, respectively		(87,884	)		(87,676	)		(87,644	)		(91,132	)		(90,909	)
Total stockholders' equity		1,240,182			1,221,939			1,230,362			1,198,480			1,194,231
Total liabilities and stockholders' equity	$	11,519,869		$	11,905,326		$	11,676,721		$	11,635,292		$	11,542,731

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)

	Three Months Ended
	March 31, 2025		December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
	(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases	$	143,309	$	147,436		$	149,643		$	145,585		$	145,265
Debt securities		6,765		6,421			6,473			6,480			6,878
Restricted equity securities		1,203		1,460			1,458			1,376			1,492
Short-term investments		2,451		2,830			1,986			1,914			1,824
Total interest and dividend income		153,728		158,147			159,560			155,355			155,459
Interest expense:
Deposits		53,478		56,562			59,796			59,721			56,884
Borrowed funds		14,420		16,597			16,756			15,633			16,987
Total interest expense		67,898		73,159			76,552			75,354			73,871
Net interest income		85,830		84,988			83,008			80,001			81,588
Provision for credit losses on loans		5,974		4,141			4,832			5,607			7,423
Provision (recovery) of credit losses on investments		12		(104	)		(172	)		(39	)		(44	)
Net interest income after provision for credit losses		79,844		80,951			78,348			74,433			74,209
Non-interest income:
Deposit fees		2,361		2,297			2,353			3,001			2,897
Loan fees		393		439			464			702			789
Loan level derivative income, net		70		1,115			—			106			437
Gain on sales of loans and leases held-for-sale		24		406			415			130			—
Other		2,812		2,330			3,116			2,457			2,161
Total non-interest income		5,660		6,587			6,348			6,396			6,284
Non-interest expense:
Compensation and employee benefits		35,853		37,202			35,130			34,762			36,629
Occupancy		5,721		5,393			5,343			5,551			5,769
Equipment and data processing		7,012		6,780			6,831			6,732			7,031
Professional services		1,726		1,345			2,143			1,745			1,900
FDIC insurance		2,037		2,017			2,118			2,025			1,884
Advertising and marketing		868		1,303			859			1,504			1,574
Amortization of identified intangible assets		1,430		1,701			1,668			1,669			1,708
Merger and restructuring expense		971		3,378			—			823			—
Other		4,404		4,600			3,856			4,373			4,519
Total non-interest expense		60,022		63,719			57,948			59,184			61,014
Income before provision for income taxes		25,482		23,819			26,748			21,645			19,479
Provision for income taxes		6,382		6,283			6,606			5,273			4,814
Net income	$	19,100	$	17,536		$	20,142		$	16,372		$	14,665
Earnings per common share:
Basic	$	0.21	$	0.20		$	0.23		$	0.18		$	0.16
Diluted	$	0.21	$	0.20		$	0.23		$	0.18		$	0.16
Weighted average common shares outstanding during the period:
Basic		89,103,510		89,098,443			89,033,463			88,904,692			88,894,577
Diluted		89,567,747		89,483,964			89,319,611			89,222,315			89,181,508
Dividends paid per common share	$	0.135	$	0.135		$	0.135		$	0.135		$	0.135


BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Asset Quality Analysis (Unaudited)

	At and for the Three Months Ended
	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
	(Dollars in Thousands)
NONPERFORMING ASSETS:
Loans and leases accounted for on a nonaccrual basis:
Commercial real estate mortgage	$	10,842		$	11,525		$	11,595		$	11,659		$	18,394
Multi-family mortgage		6,576			6,596			1,751			—			—
Total commercial real estate loans		17,418			18,121			13,346			11,659			18,394

Commercial		7,415			14,676			15,734			16,636			3,096
Equipment financing		32,975			31,509			37,223			27,128			13,668
Total commercial loans and leases		40,390			46,185			52,957			43,764			16,764

Residential mortgage		3,962			3,999			3,862			4,495			4,563
Home equity		1,333			1,043			1,076			790			950
Other consumer		1			1			1			1			1
Total consumer loans		5,296			5,043			4,939			5,286			5,514

Total nonaccrual loans and leases		63,104			69,349			71,242			60,709			40,672

Other real estate owned		700			700			780			780			780
Other repossessed assets		217			403			799			1,194			1,037
Total nonperforming assets	$	64,021		$	70,452		$	72,821		$	62,683		$	42,489

Loans and leases past due greater than 90 days and still accruing	$	3,009		$	811		$	16,091		$	4,994		$	363

Nonperforming loans and leases as a percentage of total loans and leases		0.65	%		0.71	%		0.73	%		0.62	%		0.42	%
Nonperforming assets as a percentage of total assets		0.56	%		0.59	%		0.62	%		0.54	%		0.37	%

PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:
Allowance for loan and lease losses at beginning of period	$	125,083		$	127,316		$	121,750		$	120,124		$	117,522
Charge-offs		(9,073	)		(8,414	)		(4,183	)		(8,823	)		(5,390	)
Recoveries		1,476			1,162			375			436			309
Net charge-offs		(7,597	)		(7,252	)		(3,808	)		(8,387	)		(5,081	)
Provision for loan and lease losses excluding unfunded commitments *		6,659			5,019			9,374			10,013			7,683
Allowance for loan and lease losses at end of period	$	124,145		$	125,083		$	127,316		$	121,750		$	120,124

Allowance for loan and lease losses as a percentage of total loans and leases		1.29	%		1.28	%		1.31	%		1.25	%		1.24	%

NET CHARGE-OFFS:
Commercial real estate loans	$	—		$	—		$	—		$	3,819		$	606
Commercial loans and leases **		7,647			7,257			3,797			4,571			8,179
Consumer loans		(50	)		(5	)		11			(3	)		(4	)
Total net charge-offs	$	7,597		$	7,252		$	3,808		$	8,387		$	8,781

Net loan and lease charge-offs as a percentage of average loans and leases (annualized)		0.31	%		0.30	%		0.16	%		0.35	%		0.36	%

*Provision for loan and lease losses does not include (credit) provision of $(0.7 million), $(0.9 million), $(4.5 million), $(4.4 million), and $(0.3 million) for credit losses on unfunded commitments during the three months ended March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024, and March 31, 2024, respectively.
** The balance at March 31, 2024 includes a $3.7 million charge-off on a letter of credit which impacted the provision.


BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Average Yields / Costs (Unaudited)

	Three Months Ended
	March 31, 2025						December 31, 2024						March 31, 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)	$	888,913	$	6,814	3.07	%	$	856,065	$	6,463	3.02	%	$	893,228	$	6,927	3.10	%
Restricted equity securities (2)		69,784		1,204	6.90	%		75,879		1,459	7.69	%		76,335		1,493	7.82	%
Short-term investments		202,953		2,451	4.83	%		236,784		2,830	4.78	%		130,768		1,824	5.58	%
Total investments		1,161,650		10,469	3.60	%		1,168,728		10,752	3.68	%		1,100,331		10,244	3.72	%
Loans and Leases:
Commercial real estate loans (3)		5,651,390		77,243	5.47	%		5,752,591		81,195	5.52	%		5,761,735		81,049	5.56	%
Commercial loans (3)		1,237,078		19,698	6.37	%		1,170,295		19,750	6.61	%		1,026,467		17,507	6.75	%
Equipment financing (3)		1,281,425		25,965	8.11	%		1,310,143		26,295	8.03	%		1,374,426		26,895	7.83	%
Consumer loans (3)		1,548,973		20,861	5.41	%		1,529,654		20,881	5.44	%		1,482,819		19,978	5.40	%
Total loans and leases		9,718,866		143,767	5.92	%		9,762,683		148,121	6.07	%		9,645,447		145,429	6.03	%
Total interest-earning assets		10,880,516		154,236	5.67	%		10,931,411		158,873	5.81	%		10,745,778		155,673	5.79	%
Non-interest-earning assets		662,814						649,161						671,407
Total assets	$	11,543,330					$	11,580,572					$	11,417,185

Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts	$	628,346		1,005	0.65	%	$	630,408		1,056	0.67	%	$	671,914		1,261	0.75	%
Savings accounts		1,743,688		10,173	2.37	%		1,741,355		10,896	2.49	%		1,694,220		11,352	2.69	%
Money market accounts		2,187,581		13,587	2.52	%		2,083,033		13,856	2.65	%		2,076,303		15,954	3.09	%
Certificates of deposit		1,886,386		19,593	4.21	%		1,857,483		20,691	4.43	%		1,624,118		16,672	4.13	%
Brokered deposit accounts		767,275		9,120	4.82	%		797,910		10,063	5.02	%		896,784		11,645	5.22	%
Total interest-bearing deposits		7,213,276		53,478	3.01	%		7,110,189		56,562	3.16	%		6,963,339		56,884	3.29	%
Borrowings
Advances from the FHLB		1,007,508		11,847	4.70	%		1,144,157		13,958	4.77	%		1,164,534		14,633	4.97	%
Subordinated debentures and notes		84,345		1,701	8.07	%		84,311		1,944	9.22	%		84,206		1,377	6.54	%
Other borrowed funds		71,462		872	4.95	%		65,947		695	4.20	%		93,060		977	4.22	%
Total borrowings		1,163,315		14,420	4.96	%		1,294,415		16,597	5.02	%		1,341,800		16,987	5.01	%
Total interest-bearing liabilities		8,376,591		67,898	3.29	%		8,404,604		73,159	3.46	%		8,305,139		73,871	3.58	%
Non-interest-bearing liabilities:
Demand checking accounts		1,680,527						1,693,138						1,631,472
Other non-interest-bearing liabilities		251,011						250,303						278,670
Total liabilities		10,308,129						10,348,045						10,215,281
Stockholders’ equity		1,235,201						1,232,527						1,201,904
Total liabilities and equity	$	11,543,330					$	11,580,572					$	11,417,185
Net interest income (tax-equivalent basis) /Interest-rate spread (4)				86,338	2.38	%				85,714	2.35	%				81,802	2.21	%
Less adjustment of tax-exempt income				508						726						214
Net interest income			$	85,830					$	84,988					$	81,588
Net interest margin (5)					3.22	%					3.12	%					3.06	%

(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 SUBSIDIARIES
Non-GAAP Financial Information (Unaudited)

										At and for the Three Months Ended March 31,
											2025			2024
Reconciliation Table - Non-GAAP Financial Information										(Dollars in Thousands Except Share Data)

Reported Pretax Income										$	25,482		$	19,479
Add:
Merger and restructuring expense											971			—
Operating Pretax Income										$	26,453		$	19,479
Effective tax rate											24.3	%		24.7	%
Provision for income taxes											6,416			4,814
Operating earnings after tax										$	20,037		$	14,665

Operating earnings per common share:
Basic										$	0.22		$	0.16
Diluted										$	0.22		$	0.16

Weighted average common shares outstanding during the period:
Basic											89,103,510			88,894,577
Diluted											89,567,747			89,181,508

Return on average assets *											0.66	%		0.51	%
Add:
Merger and restructuring expense (after-tax) *											0.03	%		—	%
Operating return on average assets *											0.69	%		0.51	%

Return on average tangible assets *											0.68	%		0.53	%
Add:
Merger and restructuring expense (after-tax) *											0.03	%		—	%
Operating return on average tangible assets *											0.71	%		0.53	%


Return on average stockholders' equity *											6.19	%		4.88	%
Add:
Merger and restructuring expense (after-tax) *											0.24	%		—	%
Operating return on average stockholders' equity *											6.43	%		4.88	%


Return on average tangible stockholders' equity *											7.82	%		6.26	%
Add:
Merger and restructuring expense (after-tax) *											0.30	%		—	%
Operating return on average tangible stockholders' equity *											8.12	%		6.26	%

* Ratios at and for the three months ended are annualized.

	At and for the Three Months Ended
	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
	(Dollars in Thousands)

Net income, as reported	$	19,100		$	17,536		$	20,142		$	16,372		$	14,665

Average total assets	$	11,543,330		$	11,580,572		$	11,451,338		$	11,453,394		$	11,417,185
Less: Average goodwill and average identified intangible assets, net		257,941			259,496			261,188			262,859			264,536
Average tangible assets	$	11,285,389		$	11,321,076		$	11,190,150		$	11,190,535		$	11,152,649

Return on average tangible assets (annualized)		0.68	%		0.62	%		0.72	%		0.59	%		0.53	%

Average total stockholders’ equity	$	1,235,201		$	1,232,527		$	1,216,037		$	1,193,385		$	1,201,904
Less: Average goodwill and average identified intangible assets, net		257,941			259,496			261,188			262,859			264,536
Average tangible stockholders’ equity	$	977,260		$	973,031		$	954,849		$	930,526		$	937,368

Return on average tangible stockholders’ equity (annualized)		7.82	%		7.21	%		8.44	%		7.04	%		6.26	%

Total stockholders’ equity	$	1,240,182		$	1,221,939		$	1,230,362		$	1,198,480		$	1,194,231
Less:
Goodwill		241,222			241,222			241,222			241,222			241,222
Identified intangible assets, net		16,030			17,461			19,162			20,830			22,499
Tangible stockholders' equity	$	982,930		$	963,256		$	969,978		$	936,428		$	930,510

Total assets	$	11,519,869		$	11,905,326		$	11,676,721		$	11,635,292		$	11,542,731
Less:
Goodwill		241,222			241,222			241,222			241,222			241,222
Identified intangible assets, net		16,030			17,461			19,162			20,830			22,499
Tangible assets	$	11,262,617		$	11,646,643		$	11,416,337		$	11,373,240		$	11,279,010

Tangible stockholders’ equity to tangible assets		8.73	%		8.27	%		8.50	%		8.23	%		8.25	%

Tangible stockholders' equity	$	982,930		$	963,256		$	969,978		$	936,428		$	930,510

Number of common shares issued		96,998,075			96,998,075			96,998,075			96,998,075			96,998,075
Less:
Treasury shares		7,037,610			7,019,384			7,015,843			7,373,009			7,354,399
Unvested restricted shares		855,860			880,248			883,789			713,443			749,099
Number of common shares outstanding		89,104,605			89,098,443			89,098,443			88,911,623			88,894,577

Tangible book value per common share	$	11.03		$	10.81		$	10.89		$	10.53		$	10.47

PDF available: http://ml.globenewswire.com/Resource/Download/e23d70f5-f96e-4a22-ac83-0bee735aa434

Brookline Bancorp Announces First Quarter Results

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