Net Income of $16.4 million, EPS of $0.18

Operating Earnings of $17.0 million, Operating EPS of $0.19

Quarterly Dividend of $0.135

BOSTON, July 24, 2024 (GLOBE NEWSWIRE) -- Brookline Bancorp, Inc. (NASDAQ:BRKL) (the "Company") today announced 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, compared to net income and operating earnings after tax (non-GAAP) of $14.7 million, or $0.16 per basic and diluted share, for the first quarter of 2024, and net income of $21.9 million, or $0.25 per basic and diluted share, and operating earnings after tax (non-GAAP) of $23.2 million, or $0.26 per basic and diluted share, for the second quarter of 2023.

Paul Perrault, Chairman and Chief Executive Officer commented, "I am pleased to report our second quarter earnings. We experienced solid loan and deposit growth across our three banks in the quarter. I would like to recognize our bankers for their diligence in providing extraordinary service to our clients." Mr. Perrault continued, "While the margin pressure we and the rest of the banking industry experienced in the first quarter persisted in the second quarter, this pressure decreased in intensity slightly from the prior quarter. As we enter the second half of 2024, we remain optimistic about the overall economic outlook in our markets."

BALANCE SHEET

Total assets at June 30, 2024 were $11.6 billion, representing an increase of $92.6 million from $11.5 billion at March 31, 2024, and an increase of $429.2 million from June 30, 2023. At June 30, 2024, total loans and leases were $9.7 billion, representing an increase of $66.1 million from March 31, 2024, and an increase of $380.3 million from June 30, 2023.

Total investment securities at June 30, 2024 decreased $9.4 million to $856.4 million from $865.8 million at March 31, 2024, and decreased $53.8 million from $910.2 million at June 30, 2023. Total cash and cash equivalents at June 30, 2024 increased $41.2 million to $343.1 million from $301.9 million at March 31, 2024, and increased $118.7 million from $224.4 million at June 30, 2023. As of June 30, 2024, total investment securities and total cash and cash equivalents represented 10.3 percent of total assets, compared to 10.1 percent as of March 31, 2024 and June 30, 2023, respectively.

Total deposits at June 30, 2024 increased $18.4 million to $8.7 billion from March 31, 2024, consisting of a $65.8 million increase in customer deposits partially offset by a $47.4 million decrease in brokered deposits, and increased $220.0 million from $8.5 billion at June 30, 2023, driven by growth in customer deposits.

Total borrowed funds at June 30, 2024 increased $67.6 million to $1.4 billion from March 31, 2024, and increased $203.2 million from $1.2 billion at June 30, 2023.

The ratio of stockholders' equity to total assets was 10.30 percent at June 30, 2024, compared to 10.35 percent at March 31, 2024, and 10.37 percent at June 30, 2023. The ratio of tangible stockholders' equity to tangible assets (non-GAAP) was 8.23 percent at June 30, 2024, as compared to 8.25 percent at March 31, 2024, and 8.16 percent at June 30, 2023. Tangible book value per common share (non-GAAP) increased $0.06 from $10.47 at March 31, 2024 to $10.53 at June 30, 2024, and increased $0.46 from $10.07 at June 30, 2023.

NET INTEREST INCOME

Net interest income decreased $1.6 million to $80.0 million during the second quarter of 2024 from $81.6 million for the quarter ended March 31, 2024. The net interest margin decreased 6 basis points to 3.00 percent for the three months ended June 30, 2024 from 3.06 percent for the three months ended March 31, 2024, primarily driven by the reversal of interest relating to new nonaccrual loans and higher funding costs.

NON-INTEREST INCOME

Total non-interest income for the quarter ended June 30, 2024 increased $0.1 million to $6.4 million from $6.3 million for the quarter ended March 31, 2024.

PROVISION FOR CREDIT LOSSES

The Company recorded a provision for credit losses of $5.6 million for the quarter ended June 30, 2024, compared to $7.4 million for the quarter ended March 31, 2024. The decrease in provision was largely driven by the stabilization of credit conditions.

Total net charge-offs for the second quarter of 2024 were $8.4 million, compared to $8.8 million in the first quarter of 2024. The $8.4 million in net charge-offs were largely driven by $3.9 million in commercial real estate loans and $4.3 million in equipment financing. The majority of net charge-offs were previously reserved for. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis decreased to 35 basis points for the second quarter of 2024 from 36 basis points for the first quarter of 2024.

The allowance for loan and lease losses represented 1.25 percent of total loans and leases at June 30, 2024, compared to 1.24 percent at March 31, 2024, and 1.35 percent at June 30, 2023.

ASSET QUALITY

The ratio of nonperforming loans and leases to total loans and leases was 0.62 percent at June 30, 2024, an increase from 0.42 percent at March 31, 2024. Total nonaccrual loans and leases increased $20.0 million to $60.7 million at June 30, 2024 from $40.7 million at March 31, 2024. The ratio of nonperforming assets to total assets was 0.54 percent at June 30, 2024, an increase from 0.37 percent at March 31, 2024. Total nonperforming assets increased $20.2 million to $62.7 million at June 30, 2024 from $42.5 million at March 31, 2024.

NON-INTEREST EXPENSE

Non-interest expense for the quarter ended June 30, 2024 decreased $1.8 million to $59.2 million from $61.0 million for the quarter ended March 31, 2024. The decrease was primarily driven by decreases of $1.9 million in compensation and employee benefits expense and $0.3 million in equipment and data processing expense, partially offset by a $0.8 million non-recurring restructuring charge due to the exit of the specialty vehicle business at Eastern Funding LLC.

PROVISION FOR INCOME TAXES

The effective tax rate was 24.4 percent and 24.5 percent for the three and six months ended June 30, 2024 compared to 24.7 percent for the three months ended March 31, 2024 and 21.4 percent and 19.4 percent for the three and six months ended June 30, 2023.

RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

The annualized return on average assets increased to 0.57 percent during the second quarter 2024 from 0.51 percent for the first quarter of 2024.

The annualized return on average stockholders' equity increased to 5.49 percent during the second quarter of 2024 from 4.88 percent for the first quarter of 2024. The annualized return on average tangible stockholders' equity increased to 7.04 percent for the second quarter of 2024 from 6.26 percent for the first quarter of 2024.

DIVIDEND DECLARED

The Company's Board of Directors approved a dividend of $0.135 per share for the quarter ended June 30, 2024. The dividend will be paid on August 30, 2024 to stockholders of record on August 16, 2024.

CONFERENCE CALL

The Company will conduct a conference call/webcast at 1:30 PM Eastern Time on Thursday, July 25, 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/629150850. 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 611840). 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: 134147.

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, 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
	June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023			June 30, 2023
	(Dollars In Thousands Except per Share Data)
Earnings Data:
Net interest income	$	80,001		$	81,588		$	83,555		$	84,070		$	86,037
Provision for credit losses on loans		5,607			7,423			3,851			2,947			5,726
Provision (credit) for credit losses on investments		(39	)		(44	)		(76	)		84			133
Non-interest income		6,396			6,284			8,027			5,508			5,462
Non-interest expense		59,184			61,014			59,244			57,679			57,825
Income before provision for income taxes		21,645			19,479			28,563			28,868			27,815
Net income		16,372			14,665			22,888			22,701			21,850

Performance Ratios:
Net interest margin (1)		3.00	%		3.06	%		3.15	%		3.18	%		3.26	%
Interest-rate spread (1)		2.14	%		2.21	%		2.39	%		2.45	%		2.51	%
Return on average assets (annualized)		0.57	%		0.51	%		0.81	%		0.81	%		0.78	%
Return on average tangible assets (annualized) (non-GAAP)		0.59	%		0.53	%		0.83	%		0.83	%		0.79	%
Return on average stockholders' equity (annualized)		5.49	%		4.88	%		7.82	%		7.78	%		7.44	%
Return on average tangible stockholders' equity (annualized) (non-GAAP)		7.04	%		6.26	%		10.12	%		10.09	%		9.67	%
Efficiency ratio (2)		68.50	%		69.44	%		64.69	%		64.39	%		63.20	%

Per Common Share Data:
Net income — Basic	$	0.18		$	0.16		$	0.26		$	0.26		$	0.25
Net income — Diluted		0.18			0.16			0.26			0.26			0.25
Cash dividends declared		0.135			0.135			0.135			0.135			0.135
Book value per share (end of period)		13.48			13.43			13.48			13.03			13.11
Tangible book value per share (end of period) (non-GAAP)		10.53			10.47			10.50			10.02			10.07
Stock price (end of period)		8.35			9.96			10.91			9.11			8.74

Balance Sheet:
Total assets	$	11,635,292		$	11,542,731		$	11,382,256		$	11,180,555		$	11,206,078
Total loans and leases		9,721,137			9,655,086			9,641,589			9,380,782			9,340,799
Total deposits		8,737,036			8,718,653			8,548,125			8,566,013			8,517,013
Total stockholders' equity		1,198,480			1,194,231			1,198,644			1,157,871			1,162,308

Asset Quality:
Nonperforming assets	$	62,683		$	42,489		$	45,324		$	51,540		$	46,925
Nonperforming assets as a percentage of total assets		0.54	%		0.37	%		0.40	%		0.46	%		0.42	%
Allowance for loan and lease losses	$	121,750		$	120,124		$	117,522		$	119,081		$	125,817
Allowance for loan and lease losses as a percentage of total loans and leases		1.25	%		1.24	%		1.22	%		1.27	%		1.35	%
Net loan and lease charge-offs	$	8,387		$	8,781		$	7,141		$	10,974		$	1,097
Net loan and lease charge-offs as a percentage of average loans and leases (annualized)		0.35	%		0.36	%		0.30	%		0.47	%		0.05	%

Capital Ratios:
Stockholders' equity to total assets		10.30	%		10.35	%		10.53	%		10.36	%		10.37	%
Tangible stockholders' equity to tangible assets (non-GAAP)		8.23	%		8.25	%		8.39	%		8.16	%		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)

	June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023			June 30, 2023
ASSETS	(In Thousands Except Share Data)
Cash and due from banks	$	60,067		$	45,708		$	34,514		$	33,506		$	44,323
Short-term investments		283,017			256,178			98,513			127,495			180,109
Total cash and cash equivalents		343,084			301,886			133,027			161,001			224,432
Investment securities available-for-sale		856,439			865,798			916,601			880,412			910,210
Total investment securities		856,439			865,798			916,601			880,412			910,210
Allowance for investment security losses		(359	)		(398	)		(441	)		(517	)		(433	)
Net investment securities		856,080			865,400			916,160			879,895			909,777
Loans and leases held-for-sale		—			6,717			—			—			—
Loans and leases:
Commercial real estate loans		5,782,111			5,755,239			5,764,529			5,669,768			5,670,771
Commercial loans and leases		2,443,530			2,416,904			2,399,668			2,241,375			2,193,027
Consumer loans		1,495,496			1,482,943			1,477,392			1,469,639			1,477,001
Total loans and leases		9,721,137			9,655,086			9,641,589			9,380,782			9,340,799
Allowance for loan and lease losses		(121,750	)		(120,124	)		(117,522	)		(119,081	)		(125,817	)
Net loans and leases		9,599,387			9,534,962			9,524,067			9,261,701			9,214,982
Restricted equity securities		78,963			74,709			77,595			65,460			71,421
Premises and equipment, net of accumulated depreciation		88,378			89,707			89,853			90,476			90,685
Right-of-use asset operating leases		35,691			33,133			30,863			31,619			31,774
Deferred tax asset		60,032			60,484			56,952			74,491			77,704
Goodwill		241,222			241,222			241,222			241,222			241,222
Identified intangible assets, net of accumulated amortization		20,830			22,499			24,207			26,172			28,126
Other real estate owned and repossessed assets		1,974			1,817			1,694			299			602
Other assets		309,651			310,195			286,616			348,219			315,353
Total assets	$	11,635,292		$	11,542,731		$	11,382,256		$	11,180,555		$	11,206,078
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand checking accounts	$	1,638,378		$	1,629,371		$	1,678,406		$	1,745,137		$	1,843,516
NOW accounts		647,370			654,748			661,863			647,476			699,119
Savings accounts		1,735,857			1,727,893			1,669,018			1,625,804			1,464,054
Money market accounts		2,073,557			2,065,569			2,082,810			2,161,359			2,166,570
Certificate of deposit accounts		1,718,414			1,670,147			1,574,855			1,491,844			1,410,905
Brokered deposit accounts		923,460			970,925			881,173			894,393			932,849
Total deposits		8,737,036			8,718,653			8,548,125			8,566,013			8,517,013
Borrowed funds:
Advances from the FHLB		1,265,079			1,150,153			1,223,226			899,304			1,043,381
Subordinated debentures and notes		84,258			84,223			84,188			84,152			84,116
Other borrowed funds		80,125			127,505			69,256			151,612			98,773
Total borrowed funds		1,429,462			1,361,881			1,376,670			1,135,068			1,226,270
Operating lease liabilities		37,102			34,235			31,998			32,807			33,021
Mortgagors' escrow accounts		17,117			16,245			17,239			12,578			17,207
Reserve for unfunded credits		11,400			15,807			19,767			21,497			22,789
Accrued expenses and other liabilities		204,695			201,679			189,813			254,721			227,470
Total liabilities		10,436,812			10,348,500			10,183,612			10,022,684			10,043,770
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		904,775			903,726			902,659			901,376			905,084
Retained earnings		445,560			441,285			438,722			427,937			417,328
Accumulated other comprehensive income		(61,693	)		(60,841	)		(52,798	)		(81,541	)		(66,156	)
Treasury stock, at cost;
7,373,009, 7,354,399, 7,354,399, 7,350,981 and 7,734,891 shares, respectively		(91,132	)		(90,909	)		(90,909	)		(90,871	)		(94,918	)
Total stockholders' equity		1,198,480			1,194,231			1,198,644			1,157,871			1,162,308
Total liabilities and stockholders' equity	$	11,635,292		$	11,542,731		$	11,382,256		$	11,180,555		$	11,206,078

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
	Three Months Ended
	June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023		June 30, 2023
	(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases	$	145,585		$	145,265		$	142,948		$	136,561	$	132,299
Debt securities		6,480			6,878			6,945			6,799		8,034
Restricted equity securities		1,376			1,492			1,333			1,310		1,673
Short-term investments		1,914			1,824			1,093			2,390		3,351
Total interest and dividend income		155,355			155,459			152,319			147,060		145,357
Interest expense:
Deposits		59,721			56,884			54,034			49,116		43,147
Borrowed funds		15,633			16,987			14,730			13,874		16,173
Total interest expense		75,354			73,871			68,764			62,990		59,320
Net interest income		80,001			81,588			83,555			84,070		86,037
Provision for credit losses on loans		5,607			7,423			3,851			2,947		5,726
Provision (credit) for credit losses on investments		(39	)		(44	)		(76	)		84		133
Net interest income after provision for credit losses		74,433			74,209			79,780			81,039		80,178
Non-interest income:
Deposit fees		3,001			2,897			3,064			3,024		2,866
Loan fees		702			789			515			639		491
Loan level derivative income, net		106			437			778			376		363
Gain on investment securities, net		—			—			—			—		3
Gain on sales of loans and leases held-for-sale		130			—			410			225		308
Other		2,457			2,161			3,260			1,244		1,431
Total non-interest income		6,396			6,284			8,027			5,508		5,462
Non-interest expense:
Compensation and employee benefits		34,762			36,629			35,401			33,491		33,438
Occupancy		5,551			5,769			5,127			4,983		4,870
Equipment and data processing		6,732			7,031			7,245			6,766		6,531
Professional services		1,745			1,900			1,442			2,368		1,986
FDIC insurance		2,025			1,884			1,839			2,152		2,609
Advertising and marketing		1,504			1,574			758			1,174		1,382
Amortization of identified intangible assets		1,669			1,708			1,965			1,955		1,954
Merger and restructuring expense		823			—			—			—		1,002
Other		4,373			4,519			5,467			4,790		4,053
Total non-interest expense		59,184			61,014			59,244			57,679		57,825
Income before provision for income taxes		21,645			19,479			28,563			28,868		27,815
Provision for income taxes		5,273			4,814			5,675			6,167		5,965
Net income	$	16,372		$	14,665		$	22,888		$	22,701	$	21,850
Earnings per common share:
Basic	$	0.18		$	0.16		$	0.26		$	0.26	$	0.25
Diluted	$	0.18		$	0.16		$	0.26		$	0.26	$	0.25
Weighted average common shares outstanding during the period:
Basic		88,904,692			88,894,577			88,867,159			88,795,270		88,665,135
Diluted		89,222,315			89,181,508			89,035,505			88,971,210		88,926,543
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)

	Six Months Ended June 30,
		2024			2023
	(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases	$	290,850		$	254,230
Debt securities		13,358			15,904
Restricted equity securities		2,868			2,928
Short-term investments		3,738			4,846
Total interest and dividend income		310,814			277,908
Interest expense:
Deposits		116,605			72,515
Borrowed funds		32,620			33,307
Total interest expense		149,225			105,822
Net interest income		161,589			172,086
Provision for credit losses on loans		13,030			31,070
Provision (credit) for credit losses on investments		(83	)		331
Net interest income after provision for credit losses		148,642			140,685
Non-interest income:
Deposit Fees		5,898			5,523
Loan Fees		1,491			882
Loan level derivative income, net		543			2,736
Gain on investment securities, net		—			1,704
Gain on sales of loans and leases held-for-sale		130			1,946
Other		4,618			5,608
Total non-interest income		12,680			18,399
Non-interest expense:
Compensation and employee benefits		71,391			70,003
Occupancy		11,320			10,093
Equipment and data processing		13,763			12,993
Professional services		3,645			3,416
FDIC insurance		3,909			3,853
Advertising and marketing		3,078			2,792
Amortization of identified intangible assets		3,377			3,920
Merger and restructuring expense		823			7,411
Other		8,892			8,120
Total non-interest expense		120,198			122,601
Income before provision for income taxes		41,124			36,483
Provision for income taxes		10,087			7,073
Net income	$	31,037		$	29,410
Earnings per common share:
Basic	$	0.35		$	0.34
Diluted	$	0.35		$	0.34
Weighted average common shares outstanding during the period:
Basic		88,899,635			87,620,194
Diluted		89,201,912			87,887,980
Dividends paid per common share	$	0.270		$	0.270

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Asset Quality Analysis (Unaudited)
	At and for the Three Months Ended
	June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023			June 30, 2023
	(Dollars in Thousands)
NONPERFORMING ASSETS:
Loans and leases accounted for on a nonaccrual basis:
Commercial real estate mortgage	$	11,659		$	18,394		$	19,608		$	23,263		$	8,737
Multi-family mortgage		—			—			—			1,318			—
Construction		—			—			—			2,316			3,828
Total commercial real estate loans		11,659			18,394			19,608			26,897			12,565

Commercial		16,636			3,096			3,886			5,406			16,023
Equipment financing		27,128			13,668			14,984			13,974			12,809
Condominium association		—			—			—			—			—
Total commercial loans and leases		43,764			16,764			18,870			19,380			28,832

Residential mortgage		4,495			4,563			4,292			4,249			4,343
Home equity		790			950			860			713			583
Other consumer		1			1			—			2			—
Total consumer loans		5,286			5,514			5,152			4,964			4,926

Total nonaccrual loans and leases		60,709			40,672			43,630			51,241			46,323

Other real estate owned		780			780			780			—			—
Other repossessed assets		1,194			1,037			914			299			602
Total nonperforming assets	$	62,683		$	42,489		$	45,324		$	51,540		$	46,925

Loans and leases past due greater than 90 days and still accruing	$	4,994		$	363		$	228		$	1,175		$	490

Nonperforming loans and leases as a percentage of total loans and leases		0.62	%		0.42	%		0.45	%		0.55	%		0.50	%
Nonperforming assets as a percentage of total assets		0.54	%		0.37	%		0.40	%		0.46	%		0.42	%

PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:
Allowance for loan and lease losses at beginning of period	$	120,124		$	117,522		$	119,081		$	125,817		$	120,865
Charge-offs		(8,823	)		(5,390	)		(7,722	)		(10,978	)		(1,690	)
Recoveries		436			309			581			4			593
Net charge-offs		(8,387	)		(5,081	)		(7,141	)		(10,974	)		(1,097	)
Provision for loan and lease losses excluding unfunded commitments *		10,013			7,683			5,582			4,238			6,049
Allowance for loan and lease losses at end of period	$	121,750		$	120,124		$	117,522		$	119,081		$	125,817

Allowance for loan and lease losses as a percentage of total loans and leases		1.25	%		1.24	%		1.22	%		1.27	%		1.35	%

NET CHARGE-OFFS:
Commercial real estate loans	$	3,819		$	606		$	1,087		$	(3	)	$	(6	)
Commercial loans and leases **		4,571			8,179			6,061			10,958			1,108
Consumer loans		(3	)		(4	)		(7	)		19			(5	)
Total net charge-offs	$	8,387		$	8,781		$	7,141		$	10,974		$	1,097

Net loan and lease charge-offs as a percentage of average loans and leases (annualized)		0.35	%		0.36	%		0.30	%		0.47	%		0.05	%

*Provision for loan and lease losses does not include (credit) provision of $(4.4 million), $(0.3 million), $(1.7 million), $(1.3 million), and $(0.3) million for credit losses on unfunded commitments during the three months ended June 30, 2024, March 31, 2024, December 31, 2023, September 30, 2023, and June 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
	June 30, 2024						March 31, 2024						June 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)	$	846,469	$	6,510	3.08	%	$	893,228	$	6,927	3.10	%	$	1,000,440	$	8,091	3.23	%
Restricted equity securities (2)		71,696		1,375	7.67	%		76,335		1,493	7.82	%		77,364		1,673	8.65	%
Short-term investments		143,800		1,914	5.33	%		130,768		1,824	5.58	%		229,474		3,351	5.84	%
Total investments		1,061,965		9,799	3.69	%		1,100,331		10,244	3.72	%		1,307,278		13,115	4.01	%
Loans and Leases:
Commercial real estate loans (3)		5,754,901		81,565	5.61	%		5,761,735		81,049	5.56	%		5,640,491		79,582	5.58	%
Commercial loans (3)		1,069,154		17,672	6.54	%		1,026,467		17,507	6.75	%		913,732		13,502	5.85	%
Equipment financing (3)		1,374,217		26,255	7.64	%		1,374,426		26,895	7.83	%		1,253,199		22,357	7.14	%
Consumer loans (3)		1,488,587		20,291	5.46	%		1,482,819		19,978	5.40	%		1,482,799		16,903	4.56	%
Total loans and leases		9,686,859		145,783	6.02	%		9,645,447		145,429	6.03	%		9,290,221		132,344	5.70	%
Total interest-earning assets		10,748,824		155,582	5.79	%		10,745,778		155,673	5.79	%		10,597,499		145,459	5.49	%
Non-interest-earning assets		704,570						671,407						675,173
Total assets	$	11,453,394					$	11,417,185					$	11,272,672

Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts	$	659,351		1,111	0.68	%	$	671,914		1,261	0.75	%	$	735,001		1,069	0.58	%
Savings accounts		1,731,388		11,874	2.76	%		1,694,220		11,352	2.69	%		1,374,337		5,917	1.73	%
Money market accounts		2,026,780		15,520	3.08	%		2,076,303		15,954	3.09	%		2,140,522		13,989	2.62	%
Certificates of deposit		1,699,510		18,717	4.43	%		1,624,118		16,672	4.13	%		1,390,913		10,021	2.89	%
Brokered deposit accounts		958,146		12,499	5.25	%		896,784		11,645	5.22	%		975,700		12,151	5.00	%
Total interest-bearing deposits		7,075,175		59,721	3.39	%		6,963,339		56,884	3.29	%		6,616,473		43,147	2.62	%
Borrowings
Advances from the FHLB		1,049,609		12,894	4.86	%		1,164,534		14,633	4.97	%		1,191,424		14,287	4.74	%
Subordinated debentures and notes		84,241		1,375	6.53	%		84,206		1,377	6.54	%		84,098		1,363	6.49	%
Other borrowed funds		103,753		1,364	5.29	%		93,060		977	4.22	%		86,896		523	2.41	%
Total borrowings		1,237,603		15,633	5.00	%		1,341,800		16,987	5.01	%		1,362,418		16,173	4.70	%
Total interest-bearing liabilities		8,312,778		75,354	3.65	%		8,305,139		73,871	3.58	%		7,978,891		59,320	2.98	%
Non-interest-bearing liabilities:
Demand checking accounts		1,646,869						1,631,472						1,849,393
Other non-interest-bearing liabilities		300,362						278,670						270,221
Total liabilities		10,260,009						10,215,281						10,098,505
Stockholders' equity		1,193,385						1,201,904						1,174,167
Total liabilities and equity	$	11,453,394					$	11,417,185					$	11,272,672
Net interest income (tax-equivalent basis) /Interest-rate spread (4)				80,228	2.14	%				81,802	2.21	%				86,139	2.51	%
Less adjustment of tax-exempt income				227						214						102
Net interest income			$	80,001					$	81,588					$	86,037
Net interest margin (5)					3.00	%					3.06	%					3.26	%

(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)
	Six Months Ended
	June 30, 2024						June 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)	$	869,848	$	13,437	3.09	%	$	1,014,675	$	16,065	3.17	%
Restricted equity securities (2)		74,015		2,868	7.75	%		77,139		2,928	7.59	%
Short-term investments		137,284		3,738	5.45	%		188,790		4,846	5.13	%
Total investments		1,081,147		20,043	3.71	%		1,280,604		23,839	3.72	%
Loans and Leases:
Commercial real estate loans (3)		5,758,318		162,614	5.59	%		5,610,401		147,249	5.22	%
Commercial loans (3)		1,047,810		35,179	6.64	%		903,185		27,519	6.06	%
Equipment financing (3)		1,374,322		53,150	7.73	%		1,240,031		43,570	7.03	%
Consumer loans (3)		1,485,702		40,269	5.43	%		1,467,521		35,973	4.91	%
Total loans and leases		9,666,152		291,212	6.03	%		9,221,138		254,311	5.52	%
Total interest-earning assets		10,747,299		311,255	5.79	%		10,501,742		278,150	5.30	%
Non-interest-earning assets		684,343						700,529
Total assets	$	11,431,642					$	11,202,271

Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts	$	665,632		2,372	0.72	%	$	772,459		1,970	0.51	%
Savings accounts		1,712,804		23,226	2.73	%		1,267,762		8,431	1.34	%
Money market accounts		2,051,542		31,474	3.09	%		2,252,755		26,129	2.34	%
Certificates of deposit		1,661,814		35,389	4.28	%		1,368,959		17,477	2.57	%
Brokered deposit accounts		927,465		24,144	5.23	%		756,332		18,508	4.93	%
Total interest-bearing deposits		7,019,257		116,605	3.34	%		6,418,267		72,515	2.28	%
Borrowings
Advances from the FHLB		1,107,071		27,527	4.92	%		1,227,772		28,818	4.67	%
Subordinated debentures and notes		84,223		2,752	6.54	%		84,080		2,717	6.46	%
Other borrowed funds		98,406		2,341	4.78	%		122,500		1,772	2.92	%
Total borrowings		1,289,700		32,620	5.00	%		1,434,352		33,307	4.62	%
Total interest-bearing liabilities		8,308,957		149,225	3.61	%		7,852,619		105,822	2.72	%
Non-interest-bearing liabilities:
Demand checking accounts		1,635,690						1,889,554
Other non-interest-bearing liabilities		289,351						293,157
Total liabilities		10,233,998						10,035,330
Stockholders' equity		1,197,644						1,166,941
Total liabilities and equity	$	11,431,642					$	11,202,271
Net interest income (tax-equivalent basis) /Interest-rate spread (4)				162,030	2.18	%				172,328	2.58	%
Less adjustment of tax-exempt income				441						242
Net interest income			$	161,589					$	172,086
Net interest margin (5)					3.03	%					3.31	%

(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 June 30,						At and for the Six Months Ended June 30,
				2024			2023			2024			2023
Reconciliation Table - Non-GAAP Financial Information				(Dollars in Thousands Except Share Data)						(Dollars in Thousands Except Share Data)

Reported Pretax Income				$	21,645		$	27,815		$	41,124		$	36,483
Less:
Security gains					—			3			—			1,704
Add:
Day 1 PCSB CECL provision					—			—			—			16,744
Merger and restructuring expense					823			1,002			823			7,411
Operating Pretax Income				$	22,468		$	28,814		$	41,947		$	58,934
Effective tax rate					24.4	%		19.4	%		24.5	%		19.4	%
Provision for income taxes					5,473			5,587			10,289			11,427
Operating earnings after tax				$	16,995		$	23,227		$	31,658		$	47,507

Operating earnings per common share:
Basic				$	0.19		$	0.26		$	0.36		$	0.54
Diluted				$	0.19		$	0.26		$	0.35		$	0.54

Weighted average common shares outstanding during the period:
Basic					88,904,692			88,665,135			88,899,635			87,620,194
Diluted					89,222,315			88,926,543			89,201,912			87,887,980

Return on average assets *					0.57	%		0.78	%		0.54	%		0.53	%
Less:
Security gains (after-tax) *					—	%		—	%		—	%		0.02	%
Add:
Day 1 PCSB CECL provision (after-tax) *					—	%		—	%		—	%		0.24	%
Merger and restructuring expense (after-tax) *					0.02	%		0.03	%		0.01	%		0.11	%
Operating return on average assets *					0.59	%		0.81	%		0.55	%		0.86	%

Return on average tangible assets *					0.59	%		0.79	%		0.56	%		0.54	%
Less:
Security gains (after-tax) *					—	%		—	%		—	%		0.03	%
Add:
Day 1 PCSB CECL provision (after-tax) *					—	%		—	%		—	%		0.25	%
Merger and restructuring expense (after-tax) *					0.02	%		0.03	%		0.01	%		0.11	%
Operating return on average tangible assets *					0.61	%		0.82	%		0.57	%		0.87	%


Return on average stockholders' equity *					5.49	%		7.44	%		5.18	%		5.04	%
Less:
Security gains (after-tax) *					—	%		—	%		—	%		0.24	%
Add:
Day 1 PCSB CECL provision (after-tax) *					—	%		—	%		—	%		2.31	%
Merger and restructuring expense (after-tax) *					0.21	%		0.28	%		0.10	%		1.02	%
Operating return on average stockholders' equity *					5.70	%		7.72	%		5.28	%		8.13	%


Return on average tangible stockholders' equity *					7.04	%		9.67	%		6.65	%		6.59	%
Less:
Security gains (after-tax) *					—	%		—	%		—	%		0.31	%
Add:
Day 1 PCSB CECL provision (after-tax) *					—	%		—	%		—	%		3.02	%
Merger and restructuring expense (after-tax) *					0.27	%		0.36	%		0.13	%		1.34	%
Operating return on average tangible stockholders' equity *					7.31	%		10.03	%		6.78	%		10.64	%

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

	At and for the Three Months Ended
	June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023			June 30, 2023
	(Dollars in Thousands)

Net income, as reported	$	16,372		$	14,665		$	22,888		$	22,701		$	21,850

Average total assets	$	11,453,394		$	11,417,185		$	11,271,941		$	11,180,635		$	11,272,672
Less: Average goodwill and average identified intangible assets, net		262,859			264,536			266,225			268,199			270,147
Average tangible assets	$	11,190,535		$	11,152,649		$	11,005,716		$	10,912,436		$	11,002,525

Return on average tangible assets (annualized)		0.59	%		0.53	%		0.83	%		0.83	%		0.79	%

Average total stockholders' equity	$	1,193,385		$	1,201,904		$	1,170,776		$	1,167,727		$	1,174,167
Less: Average goodwill and average identified intangible assets, net		262,859			264,536			266,225			268,199			270,147
Average tangible stockholders' equity	$	930,526		$	937,368		$	904,551		$	899,528		$	904,020

Return on average tangible stockholders' equity (annualized)		7.04	%		6.26	%		10.12	%		10.09	%		9.67	%

Total stockholders' equity	$	1,198,480		$	1,194,231		$	1,198,644		$	1,157,871		$	1,162,308
Less:
Goodwill		241,222			241,222			241,222			241,222			241,222
Identified intangible assets, net		20,830			22,499			24,207			26,172			28,126
Tangible stockholders' equity	$	936,428		$	930,510		$	933,215		$	890,477		$	892,960

Total assets	$	11,635,292		$	11,542,731		$	11,382,256		$	11,180,555		$	11,206,078
Less:
Goodwill		241,222			241,222			241,222			241,222			241,222
Identified intangible assets, net		20,830			22,499			24,207			26,172			28,126
Tangible assets	$	11,373,240		$	11,279,010		$	11,116,827		$	10,913,161		$	10,936,730

Tangible stockholders' equity to tangible assets		8.23	%		8.25	%		8.39	%		8.16	%		8.16	%

Tangible stockholders' equity	$	936,428		$	930,510		$	933,215		$	890,477		$	892,960

Number of common shares issued		96,998,075			96,998,075			96,998,075			96,998,075			96,998,075
Less:
Treasury shares		7,373,009			7,354,399			7,354,399			7,350,981			7,734,891
Unvested restricted shares		713,443			749,099			749,099			780,859			598,049
Number of common shares outstanding		88,911,623			88,894,577			88,894,577			88,866,235			88,665,135

Tangible book value per common share	$	10.53		$	10.47		$	10.50		$	10.02		$	10.07

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Brookline Bancorp Announces Second Quarter Results