• Brookline Bancorp Announces Third Quarter Results

    Source: Nasdaq GlobeNewswire / 23 Oct 2024 15:15:51   America/Chicago

    Net Income of $20.1 million, EPS of $0.23

    Quarterly Dividend of $0.135

    BOSTON, Oct. 23, 2024 (GLOBE NEWSWIRE) -- Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced net income and operating earnings after tax (non-GAAP) of $20.1 million, or $0.23 per basic and diluted share, for the third quarter of 2024, compared to net income of $16.4 million, or $0.18 per basic and diluted share, and operating earnings after tax (non-GAAP) of $17.0 million, or $0.19 per basic and diluted share, for the second quarter of 2024, and net income and operating earnings after tax (non-GAAP) of $22.7 million, or $0.26 per basic and diluted share, for the third quarter of 2023.

    “Our Company experienced improved performance in the third quarter,” commented Paul Perrault, Chairman and CEO, who continued, “As we move into the final months of 2024, we are confident our experienced bankers' ability to continue to deliver exceptional service to our customers will be better reflected in our profitability as interest rates normalize.”

    BALANCE SHEET

    Total assets at September 30, 2024 were $11.7 billion, representing an increase of $41.4 million from $11.6 billion at June 30, 2024, and an increase of $496.2 million from September 30, 2023. At September 30, 2024, total loans and leases were $9.8 billion, representing an increase of $34.1 million from June 30, 2024, and an increase of $374.5 million from September 30, 2023.

    Total investment securities at September 30, 2024 decreased $1.0 million to $855.4 million from $856.4 million at June 30, 2024, and decreased $25.0 million from $880.4 million at September 30, 2023. Total cash and cash equivalents at September 30, 2024 increased $64.8 million to $407.9 million from $343.1 million at June 30, 2024, and increased $246.9 million from $161.0 million at September 30, 2023. As of September 30, 2024, total investment securities and total cash and cash equivalents represented 10.8 percent of total assets, compared to 10.3 percent and 9.3 percent as of June 30, 2024 and September 30, 2023, respectively.

    Total deposits at September 30, 2024 decreased $4.8 million to $8.7 billion from June 30, 2024. Despite the decrease during the quarter, customer deposits increased $103.2 million, offset by a $107.9 million decrease in brokered deposits. Total deposits increased $166.3 million from $8.6 billion at September 30, 2023, primarily driven by growth in customer deposits. The increase in customer deposits quarter to date included a $43.5 million increase in demand checking accounts.

    Total borrowed funds at September 30, 2024 increased $68.1 million to $1.5 billion from June 30, 2024, and increased $362.5 million from $1.1 billion at September 30, 2023.

    The ratio of stockholders’ equity to total assets was 10.54 percent at September 30, 2024, compared to 10.30 percent at June 30, 2024, and 10.36 percent at September 30, 2023. The ratio of tangible stockholders’ equity to tangible assets (non-GAAP) was 8.50 percent at September 30, 2024, as compared to 8.23 percent at June 30, 2024, and 8.16 percent at September 30, 2023. Tangible book value per common share (non-GAAP) increased $0.36 from $10.53 at June 30, 2024 to $10.89 at September 30, 2024, and increased $0.87 from $10.02 at September 30, 2023.

    NET INTEREST INCOME

    Net interest income increased $3.0 million to $83.0 million during the third quarter of 2024 from $80.0 million for the quarter ended June 30, 2024. The net interest margin increased 7 basis points to 3.07 percent for the three months ended September 30, 2024 from 3.00 percent for the three months ended June 30, 2024, primarily driven by higher yields on loans and leases partially offset by higher funding costs.

    NON-INTEREST INCOME

    Total non-interest income for the quarter ended September 30, 2024 decreased $0.1 million to $6.3 million from $6.4 million for the quarter ended June 30, 2024.

    PROVISION FOR CREDIT LOSSES

    The Company recorded a provision for credit losses of $4.8 million for the quarter ended September 30, 2024, compared to $5.6 million for the quarter ended June 30, 2024. The decrease in provision was largely driven by improving economic forecasts partially offset by an increase in specific reserves on nonperforming credits.

    Total net charge-offs for the third quarter of 2024 were $3.8 million, compared to $8.4 million in the second quarter of 2024. The $3.8 million in net charge-offs was driven by $2.6 million in equipment financing, largely within specialty vehicle. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis decreased to 16 basis points for the third quarter of 2024 from 35 basis points for the second quarter of 2024.

    The allowance for loan and lease losses represented 1.31 percent of total loans and leases at September 30, 2024, compared to 1.25 percent at June 30, 2024, and 1.27 percent at September 30, 2023.

    ASSET QUALITY

    The ratio of nonperforming loans and leases to total loans and leases was 0.73 percent at September 30, 2024, an increase from 0.62 percent at June 30, 2024. Total nonaccrual loans and leases increased $10.5 million to $71.2 million at September 30, 2024 from $60.7 million at June 30, 2024. The increase was driven by one equipment financing relationship of $9.3 million which has been reserved at 55 percent. The ratio of nonperforming assets to total assets was 0.62 percent at September 30, 2024, an increase from 0.54 percent at June 30, 2024. Total nonperforming assets increased $10.1 million to $72.8 million at September 30, 2024 from $62.7 million at June 30, 2024.

    NON-INTEREST EXPENSE

    Non-interest expense for the quarter ended September 30, 2024 decreased $1.2 million to $57.9 million from $59.2 million for the quarter ended June 30, 2024. Excluding the one time restructuring charge taken in the second quarter of $0.8 million, non-interest expense decreased $0.4 million primarily due to a reduction in advertising and marketing expense.

    PROVISION FOR INCOME TAXES

    The effective tax rate was 24.7 percent and 24.6 percent for the three and nine months ended September 30, 2024 compared to 24.4 percent for the three months ended June 30, 2024 and 21.4 percent and 20.3 percent for the three and nine months ended September 30, 2023.

    RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

    The annualized return on average assets increased to 0.70 percent during the third quarter 2024 from 0.57 percent for the second quarter of 2024.

    The annualized return on average stockholders' equity increased to 6.63 percent during the third quarter of 2024 from 5.49 percent for the second quarter of 2024. The annualized return on average tangible stockholders’ equity increased to 8.44 percent for the third quarter of 2024 from 7.04 percent for the second quarter of 2024.

    DIVIDEND DECLARED

    The Company’s Board of Directors approved a dividend of $0.135 per share for the quarter ended September 30, 2024. The dividend will be paid on November 29, 2024 to stockholders of record on November 15, 2024.

    CONFERENCE CALL

    The Company will conduct a conference call/webcast at 1:30 PM Eastern Time on Thursday, October 24, 2024 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/314623001. 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 414186). 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: 898921.

    ABOUT BROOKLINE BANCORP, INC.

    Brookline Bancorp, Inc., a bank holding company with $11.7 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, changes in interest rates; general economic conditions (including inflation and concerns about liquidity) on a national basis or in the local markets in which the Company operates; 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 
     September 30,
    2024    		 June 30,
    2024    		 March 31,
    2024    		 December 31,
    2023    		 September 30,
    2023    		 
     (Dollars In Thousands Except per Share Data) 
    Earnings Data:          
    Net interest income$83,008 $80,001 $81,588 $83,555 $84,070 
    Provision for credit losses on loans4,832 5,607 7,423 3,851 2,947 
    Provision (credit) for credit losses on investments(172) (39) (44) (76) 84 
    Non-interest income6,348 6,396 6,284 8,027 5,508 
    Non-interest expense57,948 59,184 61,014 59,244 57,679 
    Income before provision for income taxes26,748 21,645 19,479 28,563 28,868 
    Net income20,142 16,372 14,665 22,888 22,701 
               
    Performance Ratios:          
    Net interest margin (1)3.07%3.00%3.06%3.15%3.18%
    Interest-rate spread (1)2.26%2.14%2.21%2.39%2.45%
    Return on average assets (annualized)0.70%0.57%0.51%0.81%0.81%
    Return on average tangible assets (annualized) (non-GAAP)0.72%0.59%0.53%0.83%0.83%
    Return on average stockholders' equity (annualized)6.63%5.49%4.88%7.82%7.78%
    Return on average tangible stockholders' equity (annualized) (non-GAAP)8.44%7.04%6.26%10.12%10.09%
    Efficiency ratio (2)64.85%68.50%69.44%64.69%64.39%
               
    Per Common Share Data:          
    Net income — Basic$0.23 $0.18 $0.16 $0.26 $0.26 
    Net income — Diluted0.23 0.18 0.16 0.26 0.26 
    Cash dividends declared0.135 0.135 0.135 0.135 0.135 
    Book value per share (end of period)13.81 13.48 13.43 13.48 13.03 
    Tangible book value per share (end of period) (non-GAAP)10.89 10.53 10.47 10.50 10.02 
    Stock price (end of period)10.09 8.35 9.96 10.91 9.11 
               
    Balance Sheet:          
    Total assets$11,676,721 $11,635,292 $11,542,731 $11,382,256 $11,180,555 
    Total loans and leases9,755,236 9,721,137 9,655,086 9,641,589 9,380,782 
    Total deposits8,732,271 8,737,036 8,718,653 8,548,125 8,566,013 
    Total stockholders’ equity1,230,362 1,198,480 1,194,231 1,198,644 1,157,871 
               
    Asset Quality:          
    Nonperforming assets$72,821 $62,683 $42,489 $45,324 $51,540 
    Nonperforming assets as a percentage of total assets0.62%0.54%0.37%0.40%0.46%
    Allowance for loan and lease losses$127,316 $121,750 $120,124 $117,522 $119,081 
    Allowance for loan and lease losses as a percentage of total loans and leases1.31%1.25%1.24%1.22%1.27%
    Net loan and lease charge-offs$3,808 $8,387 $8,781 $7,141 $10,974 
    Net loan and lease charge-offs as a percentage of average loans and leases (annualized)0.16%0.35%0.36%0.30%0.47%
               
    Capital Ratios:          
    Stockholders’ equity to total assets10.54%10.30%10.35%10.53%10.36%
    Tangible stockholders’ equity to tangible assets (non-GAAP)8.50%8.23%8.25%8.39%8.16%
               
    (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)
    		 
               
     September 30,
    2024    		 June 30,
    2024    		 March 31,
    2024    		 December 31,
    2023    		 September 30,
    2023    		 
    ASSETS(In Thousands Except Share Data) 
    Cash and due from banks$82,168 $60,067 $45,708 $34,514 $33,506 
    Short-term investments325,721 283,017 256,178 98,513 127,495 
    Total cash and cash equivalents407,889 343,084 301,886 133,027 161,001 
    Investment securities available-for-sale855,391 856,439 865,798 916,601 880,412 
    Total investment securities855,391 856,439 865,798 916,601 880,412 
    Allowance for investment security losses(186)(359)(398)(441)(517)
    Net investment securities855,205 856,080 865,400 916,160 879,895 
    Loans and leases held-for-sale— — 6,717 — — 
    Loans and leases:          
    Commercial real estate loans5,779,290 5,782,111 5,755,239 5,764,529 5,669,768 
    Commercial loans and leases2,453,038 2,443,530 2,416,904 2,399,668 2,241,375 
    Consumer loans1,522,908 1,495,496 1,482,943 1,477,392 1,469,639 
    Total loans and leases9,755,236 9,721,137 9,655,086 9,641,589 9,380,782 
    Allowance for loan and lease losses(127,316)(121,750)(120,124)(117,522)(119,081)
    Net loans and leases9,627,920 9,599,387 9,534,962 9,524,067 9,261,701 
    Restricted equity securities82,675 78,963 74,709 77,595 65,460 
    Premises and equipment, net of accumulated depreciation86,925 88,378 89,707 89,853 90,476 
    Right-of-use asset operating leases41,934 35,691 33,133 30,863 31,619 
    Deferred tax asset50,827 60,032 60,484 56,952 74,491 
    Goodwill241,222 241,222 241,222 241,222 241,222 
    Identified intangible assets, net of accumulated amortization19,162 20,830 22,499 24,207 26,172 
    Other real estate owned and repossessed assets1,579 1,974 1,817 1,694 299 
    Other assets261,383 309,651 310,195 286,616 348,219 
    Total assets$11,676,721 $11,635,292 $11,542,731 $11,382,256 $11,180,555 
    LIABILITIES AND STOCKHOLDERS' EQUITY          
    Deposits:          
    Demand checking accounts$1,681,858 $1,638,378 $1,629,371 $1,678,406 $1,745,137 
    NOW accounts637,374 647,370 654,748 661,863 647,476 
    Savings accounts1,736,989 1,735,857 1,727,893 1,669,018 1,625,804 
    Money market accounts2,041,185 2,073,557 2,065,569 2,082,810 2,161,359 
    Certificate of deposit accounts1,819,353 1,718,414 1,670,147 1,574,855 1,491,844 
    Brokered deposit accounts815,512 923,460 970,925 881,173 894,393 
    Total deposits8,732,271 8,737,036 8,718,653 8,548,125 8,566,013 
    Borrowed funds:          
    Advances from the FHLB1,345,003 1,265,079 1,150,153 1,223,226 899,304 
    Subordinated debentures and notes84,293 84,258 84,223 84,188 84,152 
    Other borrowed funds68,251 80,125 127,505 69,256 151,612 
    Total borrowed funds1,497,547 1,429,462 1,361,881 1,376,670 1,135,068 
    Operating lease liabilities43,266 37,102 34,235 31,998 32,807 
    Mortgagors’ escrow accounts14,456 17,117 16,245 17,239 12,578 
    Reserve for unfunded credits6,859 11,400 15,807 19,767 21,497 
    Accrued expenses and other liabilities151,960 204,695 201,679 189,813 254,721 
    Total liabilities10,446,359 10,436,812 10,348,500 10,183,612 10,022,684 
    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, respectively970 970 970 970 970 
    Additional paid-in capital901,562 904,775 903,726 902,659 901,376 
    Retained earnings453,555 445,560 441,285 438,722 427,937 
    Accumulated other comprehensive income(38,081)(61,693)(60,841)(52,798)(81,541)
    Treasury stock, at cost;          
    7,015,843, 7,373,009, 7,354,399, 7,354,399 and 7,350,981 shares, respectively(87,644)(91,132)(90,909)(90,909)(90,871)
    Total stockholders' equity1,230,362 1,198,480 1,194,231 1,198,644 1,157,871 
    Total liabilities and stockholders' equity$11,676,721 $11,635,292 $11,542,731 $11,382,256 $11,180,555 


    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Consolidated Statements of Income (Unaudited)
     Three Months Ended
     September 30,
    2024    		 June 30,
    2024    		 March 31,
    2024    		 December 31,
    2023    		 September 30,
    2023
     (In Thousands Except Share Data)
    Interest and dividend income:         
    Loans and leases$149,643 $145,585 $145,265 $142,948 $136,561
    Debt securities6,473 6,480 6,878 6,945 6,799
    Restricted equity securities1,458 1,376 1,492 1,333 1,310
    Short-term investments1,986 1,914 1,824 1,093 2,390
    Total interest and dividend income159,560 155,355 155,459 152,319 147,060
    Interest expense:         
    Deposits59,796 59,721 56,884 54,034 49,116
    Borrowed funds16,756 15,633 16,987 14,730 13,874
    Total interest expense76,552 75,354 73,871 68,764 62,990
    Net interest income83,008 80,001 81,588 83,555 84,070
    Provision for credit losses on loans4,832 5,607 7,423 3,851 2,947
    Provision (credit) for credit losses on investments(172)(39)(44)(76)84
    Net interest income after provision for credit losses78,348 74,433 74,209 79,780 81,039
    Non-interest income:         
    Deposit fees2,353 3,001 2,897 3,064 3,024
    Loan fees464 702 789 515 639
    Loan level derivative income, net— 106 437 778 376
    Gain on sales of loans and leases held-for-sale415 130 — 410 225
    Other3,116 2,457 2,161 3,260 1,244
    Total non-interest income6,348 6,396 6,284 8,027 5,508
    Non-interest expense:         
    Compensation and employee benefits35,130 34,762 36,629 35,401 33,491
    Occupancy5,343 5,551 5,769 5,127 4,983
    Equipment and data processing6,831 6,732 7,031 7,245 6,766
    Professional services2,143 1,745 1,900 1,442 2,368
    FDIC insurance2,118 2,025 1,884 1,839 2,152
    Advertising and marketing859 1,504 1,574 758 1,174
    Amortization of identified intangible assets1,668 1,669 1,708 1,965 1,955
    Merger and restructuring expense— 823 — — —
    Other3,856 4,373 4,519 5,467 4,790
    Total non-interest expense57,948 59,184 61,014 59,244 57,679
    Income before provision for income taxes26,748 21,645 19,479 28,563 28,868
    Provision for income taxes6,606 5,273 4,814 5,675 6,167
    Net income$20,142 $16,372 $14,665 $22,888 $22,701
    Earnings per common share:         
    Basic$0.23 $0.18 $0.16 $0.26 $0.26
    Diluted$0.23 $0.18 $0.16 $0.26 $0.26
    Weighted average common shares outstanding during the period:         
    Basic89,033,463 88,904,692 88,894,577 88,867,159 88,795,270
    Diluted89,319,611 89,222,315 89,181,508 89,035,505 88,971,210
    Dividends paid per common share$0.135 $0.135 $0.135 $0.135 $0.135


    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Consolidated Statements of Income (Unaudited)
     
     Nine Months Ended September 30,
     2024 2023
     (In Thousands Except Share Data)
    Interest and dividend income:   
    Loans and leases$           440,493 $           390,791
    Debt securities19,831 22,703
    Restricted equity securities4,326 4,238
    Short-term investments5,724 7,236
    Total interest and dividend income470,374 424,968
    Interest expense:   
    Deposits176,401 121,631
    Borrowed funds49,376 47,181
    Total interest expense225,777 168,812
    Net interest income244,597 256,156
    Provision for credit losses on loans17,862 34,017
    Provision (credit) for credit losses on investments(255)415
    Net interest income after provision for credit losses226,990 221,724
    Non-interest income:   
    Deposit Fees8,251 8,547
    Loan Fees1,955 1,521
    Loan level derivative income, net543 3,112
    Gain on investment securities, net— 1,704
    Gain on sales of loans and leases held-for-sale545 2,171
    Other7,734 6,852
    Total non-interest income19,028 23,907
    Non-interest expense:   
    Compensation and employee benefits106,521 103,494
    Occupancy16,663 15,076
    Equipment and data processing20,594 19,759
    Professional services5,788 5,784
    FDIC insurance6,027 6,005
    Advertising and marketing3,937 3,966
    Amortization of identified intangible assets5,045 5,875
    Merger and restructuring expense823 7,411
    Other12,748 12,910
    Total non-interest expense178,146 180,280
    Income before provision for income taxes67,872 65,351
    Provision for income taxes16,693 13,240
    Net income$             51,179 $             52,111
    Earnings per common share:   
    Basic$                 0.58 $                 0.59
    Diluted$                 0.57 $                 0.59
    Weighted average common shares outstanding during the period:   
    Basic88,944,569 88,016,190
    Diluted89,241,470 88,253,361
    Dividends paid per common share$               0.405 $               0.405


    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Asset Quality Analysis (Unaudited)
    		 
     At and for the Three Months Ended 
     September 30,
    2024    		 June 30,
    2024    		 March 31,
    2024    		 December 31,
    2023    		 September 30,
    2023    		 
     (Dollars in Thousands) 
    NONPERFORMING ASSETS:          
    Loans and leases accounted for on a nonaccrual basis:          
    Commercial real estate mortgage$                      11,595 $            11,659 $            18,394 $                     19,608 $                      23,263 
    Multi-family mortgage1,751 — — — 1,318 
    Construction— — — — 2,316 
    Total commercial real estate loans13,346 11,659 18,394 19,608 26,897 
               
    Commercial15,734 16,636 3,096 3,886 5,406 
    Equipment financing37,223 27,128 13,668 14,984 13,974 
    Total commercial loans and leases52,957 43,764 16,764 18,870 19,380 
               
    Residential mortgage3,862 4,495 4,563 4,292 4,249 
    Home equity1,076 790 950 860 713 
    Other consumer1 1 1 — 2 
    Total consumer loans4,939 5,286 5,514 5,152 4,964 
               
    Total nonaccrual loans and leases71,242 60,709 40,672 43,630 51,241 
               
    Other real estate owned780 780 780 780 — 
    Other repossessed assets799 1,194 1,037 914 299 
    Total nonperforming assets$                      72,821 $            62,683 $            42,489 $                     45,324 $                      51,540 
               
    Loans and leases past due greater than 90 days and still accruing$                      16,091 $              4,994 $                 363 $                          228 $                        1,175 
               
    Nonperforming loans and leases as a percentage of total loans and leases0.73%0.62%0.42%0.45%0.55%
    Nonperforming assets as a percentage of total assets0.62%0.54%0.37%0.40%0.46%
               
    PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:          
    Allowance for loan and lease losses at beginning of period$                    121,750 $          120,124 $          117,522 $                   119,081 $                    125,817 
    Charge-offs(4,183)(8,823)(5,390)(7,722)(10,978)
    Recoveries375 436 309 581 4 
    Net charge-offs(3,808)(8,387)(5,081)(7,141)(10,974)
    Provision for loan and lease losses excluding unfunded commitments *9,374 10,013 7,683 5,582 4,238 
    Allowance for loan and lease losses at end of period$                    127,316 $          121,750 $          120,124 $                   117,522 $                    119,081 
               
    Allowance for loan and lease losses as a percentage of total loans and leases1.31%1.25%1.24%1.22%1.27%
               
    NET CHARGE-OFFS:          
    Commercial real estate loans$— $              3,819 $                 606 $                       1,087 $                              (3)
    Commercial loans and leases **3,797 4,571 8,179 6,061 10,958 
    Consumer loans11 (3)(4)(7)19 
    Total net charge-offs$                        3,808 $              8,387 $              8,781 $                       7,141 $                      10,974 
               
    Net loan and lease charge-offs as a percentage of average loans and leases (annualized)0.16%0.35%0.36%0.30%0.47%
               
    *Provision for loan and lease losses does not include (credit) provision of $(4.5 million), $(4.4 million), $(0.3 million), $(1.7 million), and $(1.3) million for credit losses on unfunded commitments during the three months ended September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023, and September 30, 2023, 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
     September 30, 2024 June 30, 2024 September 30, 2023 
     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)$     853,924$    6,5163.05%$     846,469$    6,5103.08%$     887,612$    6,8403.08%
    Restricted equity securities (2)75,2251,4597.76%71,6961,3757.67%67,8241,3107.73%
    Short-term investments145,8381,9865.44%143,8001,9145.33%172,4832,3905.54%
    Total investments1,074,9879,9613.71%1,061,9659,7993.69%1,127,91910,5403.74%
    Loans and Leases:            
    Commercial real estate loans (3)5,772,45683,4125.65%5,754,90181,5655.61%5,667,37378,7505.44%
    Commercial loans (3)1,079,08418,4406.69%1,069,15417,6726.54%939,49215,2956.38%
    Equipment financing (3)1,353,64926,8847.94%1,374,21726,2557.64%1,280,03323,3317.29%
    Consumer loans (3)1,505,09521,1235.60%1,488,58720,2915.46%1,471,98519,2375.21%
    Total loans and leases9,710,284149,8596.17%9,686,859145,7836.02%9,358,883136,6135.84%
    Total interest-earning assets10,785,271159,8205.93%10,748,824155,5825.79%10,486,802147,1535.61%
    Non-interest-earning assets666,067   704,570   693,833   
    Total assets$11,451,338   $11,453,394   $11,180,635   
                 
    Liabilities and Stockholders' Equity:            
    Interest-bearing liabilities:            
    Deposits:            
    NOW accounts$     639,5611,1150.69%$     659,3511,1110.68%$     681,9291,1590.67%
    Savings accounts1,738,75612,0982.77%1,731,38811,8742.76%1,557,9118,8592.26%
    Money market accounts2,038,04815,4663.02%2,026,78015,5203.08%2,177,52815,7852.88%
    Certificates of deposit1,768,02620,0544.51%1,699,51018,7174.43%1,444,26912,1283.33%
    Brokered deposit accounts841,06711,0635.23%958,14612,4995.25%882,35111,1855.03%
    Total interest-bearing deposits7,025,45859,7963.39%7,075,17559,7213.39%6,743,98849,1162.89%
    Borrowings            
    Advances from the FHLB1,139,04914,3664.94%1,049,60912,8944.86%954,98911,7064.80%
    Subordinated debentures and notes84,2761,3786.54%84,2411,3756.53%84,1341,3786.55%
    Other borrowed funds53,1021,0127.58%103,7531,3645.29%117,5317902.67%
    Total borrowings1,276,42716,7565.14%1,237,60315,6335.00%1,156,65413,8744.69%
    Total interest-bearing liabilities8,301,88576,5523.67%8,312,77875,3543.65%7,900,64262,9903.16%
    Non-interest-bearing liabilities:            
    Demand checking accounts1,669,092   1,646,869   1,794,225   
    Other non-interest-bearing liabilities264,324   300,362   318,041   
    Total liabilities10,235,301   10,260,009   10,012,908   
    Stockholders’ equity1,216,037   1,193,385   1,167,727   
    Total liabilities and equity$11,451,338   $11,453,394   $11,180,635   
    Net interest income (tax-equivalent basis) /Interest-rate spread (4) 83,2682.26% 80,2282.14% 84,1632.45%
    Less adjustment of tax-exempt income 260   227   93  
    Net interest income $  83,008   $  80,001   $  84,070  
    Net interest margin (5)  3.07%  3.00%  3.18%
                 
    (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
    Average Yields / Costs (Unaudited)
     Nine Months Ended
     September 30, 2024 September 30, 2023 
     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)$                  864,501$  19,9533.08%$     971,855$  22,9053.14%
    Restricted equity securities (2)74,4224,3277.75%74,0004,2387.64%
    Short-term investments140,1565,7245.44%183,2957,2365.26%
    Total investments1,079,07930,0043.71%1,229,15034,3793.73%
    Loans and Leases:        
    Commercial real estate loans (3)5,763,065246,0265.61%5,629,600225,9995.29%
    Commercial loans (3)1,058,31253,6196.66%915,42042,8146.17%
    Equipment financing (3)1,367,38080,0347.80%1,253,51266,9017.12%
    Consumer loans (3)1,492,21361,3925.49%1,469,02555,2105.01%
    Total loans and leases9,680,970441,0716.07%9,267,557390,9245.62%
    Total interest-earning assets10,760,049471,0755.84%10,496,707425,3035.40%
    Non-interest-earning assets678,235   698,273   
    Total assets$             11,438,284   $11,194,980   
             
    Liabilities and Stockholders' Equity:        
    Interest-bearing liabilities:        
    Deposits:        
    NOW accounts$                  656,8793,4870.71%$     741,9513,1290.56%
    Savings accounts1,721,51835,3242.74%1,365,54117,2901.69%
    Money market accounts2,047,01146,9403.06%2,227,40441,9142.52%
    Certificates of deposit1,697,47755,4434.36%1,394,33829,6052.84%
    Brokered deposit accounts898,45535,2075.23%798,80029,6934.97%
    Total interest-bearing deposits7,021,340176,4013.36%6,528,034121,6312.49%
    Borrowings        
    Advances from the FHLB1,117,80941,8934.92%1,135,84540,5244.70%
    Subordinated debentures and notes84,2414,1306.54%84,0984,0956.49%
    Other borrowed funds83,1953,3535.38%120,8252,5622.83%
    Total borrowings1,285,24549,3765.05%1,340,76847,1814.64%
    Total interest-bearing liabilities8,306,585225,7773.63%7,868,802168,8122.87%
    Non-interest-bearing liabilities:        
    Demand checking accounts1,646,932   1,857,429   
    Other non-interest-bearing liabilities280,947   301,543   
    Total liabilities10,234,464   10,027,774   
    Stockholders’ equity1,203,820   1,167,206   
    Total liabilities and equity$             11,438,284   $11,194,980   
    Net interest income (tax-equivalent basis) /Interest-rate spread (4) 245,2982.21% 256,4912.53%
    Less adjustment of tax-exempt income 701   335  
    Net interest income $244,597   $256,156  
    Net interest margin (5)  3.05%  3.27%
             
    (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 Nine Months Ended 
     September 30,
    		 
           2024 2023 
    Reconciliation Table - Non-GAAP Financial Information     (Dollars in Thousands Except Share Data) 
              
    Reported Pretax Income     $                     67,872 $                      65,351 
    Less:          
    Security gains     — 1,704 
    Add:          
    Day 1 PCSB CECL provision     — 16,744 
    Merger and restructuring expense     823 7,411 
    Operating Pretax Income      $                     68,695 $                      87,802 
    Effective tax rate      24.6%20.3%
    Provision for income taxes      16,895 17,789 
    Operating earnings after tax     $                     51,800 $                      70,013 
               
    Operating earnings per common share:          
    Basic      $                         0.58 $                          0.80 
    Diluted      $                         0.58 $                          0.79 
               
    Weighted average common shares outstanding during the period:         
    Basic      88,944,569 88,016,190 
    Diluted      89,241,470 88,253,361 
               
    Return on average assets *     0.60%0.62%
    Less:          
    Security gains (after-tax) *     —% 0.02%
    Add:          
    Day 1 PCSB CECL provision (after-tax) *     —%0.16%
    Merger and restructuring expense (after-tax) *     0.01%0.07%
    Operating return on average assets *     0.61%0.83%
               
    Return on average tangible assets *     0.61%0.64%
    Less:          
    Security gains (after-tax) *     —% 0.02%
    Add:          
    Day 1 PCSB CECL provision (after-tax) *     —% 0.16%
    Merger and restructuring expense (after-tax) *     0.01%0.07%
    Operating return on average tangible assets *     0.62%0.85%
               
               
    Return on average stockholders' equity *     5.67%5.95%
    Less:          
    Security gains (after-tax) *     —% 0.16%
    Add:          
    Day 1 PCSB CECL provision (after-tax) *     —%1.53%
    Merger and restructuring expense (after-tax) *     0.07%0.68%
    Operating return on average stockholders' equity *     5.74%8.00%
               
               
    Return on average tangible stockholders' equity *     7.25%7.76%
    Less:          
    Security gains (after-tax) *     —% 0.20%
    Add:          
    Day 1 PCSB CECL provision (after-tax) *     —%1.99%
    Merger and restructuring expense (after-tax) *     0.09%0.88%
    Operating return on average tangible stockholders' equity *     7.34%10.43%
               
    * Ratios at and for the nine months ended are annualized.
    There was no non-operating activity for the three months ended September 30, 2024 and September 30,2023, respectively.
      
     At and for the Three Months Ended
     September 30,
    2024    		 June 30,
    2024    		 March 31,
    2024    		 December 31,
    2023    		 September 30,
    2023    		 
     (Dollars in Thousands)
                    
    Net income, as reported$                      20,142 $                16,372 $                14,665 $                     22,888 $                      22,701 
               
    Average total assets$               11,451,338 $         11,453,394 $         11,417,185 $              11,271,941 $               11,180,635 
    Less: Average goodwill and average identified intangible assets, net261,188 262,859 264,536 266,225 268,199 
    Average tangible assets$               11,190,150 $         11,190,535 $         11,152,649 $              11,005,716 $               10,912,436 
               
    Return on average tangible assets (annualized)0.72 %0.59 %0.53 %0.83 %0.83 %
               
    Average total stockholders’ equity$                 1,216,037 $           1,193,385 $           1,201,904 $                1,170,776 $                 1,167,727 
    Less: Average goodwill and average identified intangible assets, net261,188 262,859 264,536 266,225 268,199 
    Average tangible stockholders’ equity$                    954,849 $              930,526 $              937,368 $                   904,551 $                    899,528 
               
    Return on average tangible stockholders’ equity (annualized)8.44 %7.04 %6.26 %10.12 %10.09 %
               
    Total stockholders’ equity$                 1,230,362 $           1,198,480 $           1,194,231 $                1,198,644 $                 1,157,871 
    Less:          
    Goodwill241,222 241,222 241,222 241,222 241,222 
    Identified intangible assets, net19,162 20,830 22,499 24,207 26,172 
    Tangible stockholders' equity$                    969,978 $              936,428 $              930,510 $                   933,215 $                    890,477 
               
    Total assets$               11,676,721 $         11,635,292 $         11,542,731 $              11,382,256 $               11,180,555 
    Less:          
    Goodwill241,222 241,222 241,222 241,222 241,222 
    Identified intangible assets, net19,162 20,830 22,499 24,207 26,172 
    Tangible assets$               11,416,337 $         11,373,240 $         11,279,010 $              11,116,827 $               10,913,161 
               
    Tangible stockholders’ equity to tangible assets8.50 %8.23 %8.25 %8.39 %8.16 %
               
    Tangible stockholders' equity$                    969,978 $              936,428 $              930,510 $                   933,215 $                    890,477 
               
    Number of common shares issued96,998,075 96,998,075 96,998,075 96,998,075 96,998,075 
    Less:          
    Treasury shares7,015,843 7,373,009 7,354,399 7,354,399 7,350,981 
    Unvested restricted shares883,789 713,443 749,099 749,099 780,859 
    Number of common shares outstanding89,098,443 88,911,623 88,894,577 88,894,577 88,866,235 
               
    Tangible book value per common share$                        10.89 $                  10.53 $                  10.47 $                       10.50 $                        10.02 
                    

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