BOSTON, Oct. 25, 2023 (GLOBE NEWSWIRE) -- Brookline Bancorp, Inc. (NASDAQ:BRKL) (the "Company") today announced net income of $22.7 million, or $0.26 per basic and diluted share, for the third quarter of 2023, compared to net income of $21.9 million, or $0.25 per basic and diluted share, for the second quarter of 2023, and net income of $30.1 million, or $0.39 per basic and diluted share, for the third quarter of 2022.

Paul Perrault, Chairman and CEO commented on the quarter, "I am pleased to report on our Company's performance in the third quarter. We continue to make progress in all of our markets. Our colleagues are keeping us well positioned to continue taking advantage of opportunities as they present themselves."

BALANCE SHEET

Total assets at September 30, 2023 decreased $25.5 million to $11.18 billion from $11.21 billion at June 30, 2023, and increased $2.5 billion from $8.7 billion at September 30, 2022. At September 30, 2023, total loans and leases were $9.4 billion, representing an increase of $40.0 million from June 30, 2023, and an increase of $2.0 billion from September 30, 2022, primarily driven by the acquisition of PCSB Financial Corporation ("PCSB").

Total investment securities at September 30, 2023 decreased $29.8 million to $880.4 million from $910.2 million at June 30, 2023, and increased $204.7 million from $675.7 million at September 30, 2022. Total cash and cash equivalents at September 30, 2023 decreased $63.4 million to $161.0 million from $224.4 million at June 30, 2023, and increased $48.5 million from $112.5 million at September 30, 2022. As of September 30, 2023, total investment securities and total cash and cash equivalents represented 9.3 percent of total assets compared to 10.1 percent and 9.1 percent as of June 30, 2023 and September 30, 2022, respectively.

Total deposits at September 30, 2023 increased $49.0 million to $8.57 billion from $8.52 billion at June 30, 2023, consisting of an $87.5 million increase in customer deposits, partially offset by a $38.5 million decrease in brokered deposits, and increased $1.8 billion from $6.74 billion at September 30, 2022, primarily driven by the completion of the PCSB acquisition.

Total borrowed funds at September 30, 2023 decreased $91.2 million to $1.1 billion from $1.2 billion at June 30, 2023, and increased $376.3 million from $758.8 million at September 30, 2022.

The ratio of stockholders' equity to total assets was 10.36 percent at September 30, 2023, compared to 10.37 percent at June 30, 2023, and 11.08 percent at September 30, 2022. The ratio of tangible stockholders' equity to tangible assets (non-GAAP) was 8.16 percent at both September 30, 2023 and June 30, 2023, and 9.39 percent at September 30, 2022. Tangible book value per common share (non-GAAP) decreased $0.05 from $10.07 at June 30, 2023 to $10.02 at September 30, 2023, compared to $10.43 at September 30, 2022.

NET INTEREST INCOME

Net interest income decreased $2.0 million to $84.1 million during the third quarter of 2023 from $86.0 million for the quarter ended June 30, 2023. The net interest margin decreased 8 basis points to 3.18 percent for the three months ended September 30, 2023 from 3.26 percent for the three months ended June 30, 2023, primarily driven by higher funding costs.

NON-INTEREST INCOME

Total non-interest income for the quarter ended September 30, 2023 was $5.5 million and flat compared to the quarter ended June 30, 2023.

PROVISION FOR CREDIT LOSSES

The Company recorded a provision for credit losses of $2.9 million for the quarter ended September 30, 2023, compared to $5.7 million for the quarter ended June 30, 2023.

Total net charge-offs for the third quarter of 2023 were $11.0 million compared to $1.1 million in the second quarter of 2023. The increase was primarily driven by $10.2 million in net charge-offs on two 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 47 basis points for the third quarter of 2023 from 5 basis points for the second quarter of 2023.

The allowance for loan and lease losses represented 1.27 percent of total loans and leases at September 30, 2023, compared to 1.35 percent at June 30, 2023, and 1.27 percent at September 30, 2022, driven by a decline in individually assessed reserves due to the aforementioned charge-offs.

ASSET QUALITY

The ratio of nonperforming loans and leases to total loans and leases was 0.55 percent at September 30, 2023, an increase from 0.50 percent at June 30, 2023. Total nonaccrual loans and leases increased $4.9 million to $51.2 million at September 30, 2023 from $46.3 million at June 30, 2023. The ratio of nonperforming assets to total assets was 0.46 percent at September 30, 2023, an increase from 0.42 percent at June 30, 2023. Total nonperforming assets increased $4.6 million to $51.5 million at September 30, 2023 from $46.9 million at June 30, 2023. The increase in nonperforming assets was primarily driven by a $14.8 million commercial real estate relationship becoming non-accrual during the quarter, partially offset by two commercial relationships of which $10.2 million was charged off during the quarter.

NON-INTEREST EXPENSE

Non-interest expense for the quarter ended September 30, 2023 decreased $0.1 million to $57.7 million from $57.8 million for the quarter ended June 30, 2023. The decrease was primarily driven by a decrease of $1.0 million in merger and acquisition expense and a decrease of $0.5 million in FDIC insurance expense, partially offset by an increase of $0.7 million in other non-interest expense and an increase of $0.4 million in professional services expense.

PROVISION FOR INCOME TAXES

The effective tax rate was 21.4 percent and 20.3 percent for the three and nine months ended September 30, 2023 compared to 21.4 percent for the three months ended June 30, 2023 and 18.7 percent and 22.9 percent for the three and nine months ended September 30, 2022.

RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

The annualized return on average assets increased to 0.81 percent during the third quarter 2023 from 0.78 percent for the second quarter of 2023.

The annualized return on average stockholders' equity increased to 7.78 percent during the third quarter of 2023 from 7.44 percent for the second quarter of 2023. The annualized return on average tangible stockholders' equity increased to 10.09 percent for the third quarter of 2023 from 9.67 percent for the second quarter of 2023.

DIVIDEND DECLARED

The Company's Board of Directors approved a dividend of $0.135 per share for the quarter ended September 30, 2023. The dividend will be paid on November 24, 2023 to stockholders of record on November 10, 2023.

CONFERENCE CALL

The Company will conduct a conference call/webcast at 1:30 PM Eastern Time on Thursday, October 26, 2023 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/328004214. 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 454769). 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 204-525-0658 (internationally) and entering the passcode: 509267.

ABOUT BROOKLINE BANCORP, INC.

Brookline Bancorp, Inc., a bank holding company with $11.2 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 Company's ability to achieve the synergies and value creation contemplated by the acquisition of PCSB; turbulence in the capital and debt markets; changes in interest rates; competitive pressures from other financial institutions; general economic conditions (including inflation and concerns about liquidity) on a national basis or in the local markets in which the Company operates; 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, 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 Officer
	(617) 425-5331
	ccarlson@brkl.com

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Selected Financial Highlights (Unaudited)

	At and for the Three Months Ended
	September 30, 2023			June 30, 2023			March 31, 2023			December 31, 2022			September 30, 2022
	(Dollars In Thousands Except per Share Data)
Earnings Data:
Net interest income	$	84,070		$	86,037		$	86,049		$	80,030		$	78,026
Provision (credit) for credit losses		2,947			5,726			25,344			5,671			2,845
Provision (credit) for investment losses		84			133			198			54			(10	)
Non-interest income		5,508			5,462			12,937			9,056			6,834
Non-interest expense		57,679			57,825			64,776			47,225			44,959
Income before provision for income taxes		28,868			27,815			8,668			36,136			37,066
Net income		22,701			21,850			7,560			29,695			30,149

Performance Ratios:
Net interest margin (1)		3.18	%		3.26	%		3.36	%		3.81	%		3.80	%
Interest-rate spread (1)		2.45	%		2.51	%		2.66	%		3.35	%		3.58	%
Return on average assets (annualized)		0.81	%		0.78	%		0.27	%		1.34	%		1.40	%
Return on average tangible assets (annualized) (non-GAAP)		0.83	%		0.79	%		0.28	%		1.37	%		1.43	%
Return on average stockholders' equity (annualized)		7.78	%		7.44	%		2.61	%		12.09	%		12.29	%
Return on average tangible stockholders' equity (annualized) (non-GAAP)		10.09	%		9.67	%		3.43	%		14.48	%		14.72	%
Efficiency ratio (2)		64.39	%		63.20	%		65.44	%		53.01	%		52.98	%

Per Common Share Data:
Net income — Basic	$	0.26		$	0.25		$	0.09		$	0.39		$	0.39
Net income — Diluted		0.26			0.25			0.09			0.39			0.39
Cash dividends declared		0.135			0.135			0.135			0.135			0.135
Book value per share (end of period)		13.03			13.11			13.14			12.91			12.54
Tangible book value per share (end of period) (non-GAAP)		10.02			10.07			10.08			10.80			10.43
Stock price (end of period)		9.11			8.74			10.50			14.15			11.65

Balance Sheet:
Total assets	$	11,180,555		$	11,206,078		$	11,522,485		$	9,185,836		$	8,695,708
Total loans and leases		9,380,782			9,340,799			9,246,965			7,644,388			7,421,304
Total deposits		8,566,013			8,517,013			8,456,462			6,522,146			6,735,605
Total stockholders' equity		1,157,871			1,162,308			1,165,066			992,125			963,618

Asset Quality:
Nonperforming assets	$	51,540		$	46,925		$	28,962		$	15,302		$	18,312
Nonperforming assets as a percentage of total assets		0.46	%		0.42	%		0.25	%		0.17	%		0.21	%
Allowance for loan and lease losses	$	119,081		$	125,817		$	120,865		$	98,482		$	94,169
Allowance for loan and lease losses as a percentage of total loans and leases		1.27	%		1.35	%		1.31	%		1.29	%		1.27	%
Net loan and lease charge-offs (recoveries)	$	10,974		$	1,097		$	451		$	310		$	(179	)
Net loan and lease charge-offs as a percentage of average loans and leases (annualized)		0.47	%		0.05	%		0.02	%		0.02	%		(0.01	)%

Capital Ratios:
Stockholders' equity to total assets		10.36	%		10.37	%		10.11	%		10.80	%		11.08	%
Tangible stockholders' equity to tangible assets (non-GAAP)		8.16	%		8.16	%		7.94	%		9.20	%		9.39	%

(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, 2023			June 30, 2023			March 31, 2023			December 31, 2022			September 30, 2022
*ASSETS*	(In Thousands Except Share Data)
Cash and due from banks	$	33,506		$	44,323		$	30,782		$	191,767		$	65,638
Short-term investments		127,495			180,109			455,538			191,192			46,873
Total cash and cash equivalents		161,001			224,432			486,320			382,959			112,511
Investment securities available-for-sale		880,412			910,210			1,067,032			656,766			675,692
Total investment securities		880,412			910,210			1,067,032			656,766			675,692
Allowance for investment security losses		(517	)		(433	)		(301	)		(102	)		(48	)
Net investment securities		879,895			909,777			1,066,731			656,664			675,644
Loans and leases:
Commercial real estate loans		5,669,768			5,670,771			5,610,414			4,404,148			4,269,512
Commercial loans and leases		2,241,375			2,193,027			2,147,149			2,016,499			1,933,645
Consumer loans		1,469,639			1,477,001			1,489,402			1,223,741			1,218,147
Total loans and leases		9,380,782			9,340,799			9,246,965			7,644,388			7,421,304
Allowance for loan and lease losses		(119,081	)		(125,817	)		(120,865	)		(98,482	)		(94,169	)
Net loans and leases		9,261,701			9,214,982			9,126,100			7,545,906			7,327,135
Restricted equity securities		65,460			71,421			86,230			71,307			44,760
Premises and equipment, net of accumulated depreciation		90,476			90,685			87,799			71,391			69,912
Right-of-use asset operating leases		31,619			31,774			30,067			19,484			18,614
Deferred tax asset		74,491			77,704			75,028			52,237			56,894
Goodwill		241,222			241,222			241,222			160,427			160,427
Identified intangible assets, net of accumulated amortization		26,172			28,126			30,080			1,781			1,902
Other real estate owned and repossessed assets		299			602			508			408			591
Other assets		348,219			315,353			292,400			223,272			227,318
Total assets	$	11,180,555		$	11,206,078		$	11,522,485		$	9,185,836		$	8,695,708
*LIABILITIES AND STOCKHOLDERS' EQUITY*
Deposits:
Demand checking accounts	$	1,745,137		$	1,843,516		$	1,899,370		$	1,802,518		$	1,848,562
NOW accounts		647,476			699,119			757,411			544,118			597,870
Savings accounts		1,625,804			1,464,054			1,268,375			762,271			824,789
Money market accounts		2,161,359			2,166,570			2,185,971			2,174,952			2,405,680
Certificate of deposit accounts		1,491,844			1,410,905			1,362,970			928,143			924,771
Brokered deposit accounts		894,393			932,849			982,365			310,144			133,933
Total deposits		8,566,013			8,517,013			8,456,462			6,522,146			6,735,605
Borrowed funds:
Advances from the FHLBB		899,304			1,043,381			1,458,457			1,237,823			557,895
Subordinated debentures and notes		84,152			84,116			84,080			84,044			84,008
Other borrowed funds		151,612			98,773			87,565			110,785			116,865
Total borrowed funds		1,135,068			1,226,270			1,630,102			1,432,652			758,768
Operating lease liabilities		32,807			33,021			31,373			19,484			18,614
Mortgagors' escrow accounts		12,578			17,207			17,080			5,607			5,785
Reserve for unfunded credits		21,497			22,789			23,112			20,602			19,555
Accrued expenses and other liabilities		254,721			227,470			199,290			193,220			193,763
Total liabilities		10,022,684			10,043,770			10,357,419			8,193,711			7,732,090
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, 85,177,172 shares issued, and 85,177,172 shares issued, respectively		970			970			970			852			852
Additional paid-in capital		901,376			905,084			904,174			736,074			735,119
Retained earnings, partially restricted		427,937			417,328			407,528			412,019			392,779
Accumulated other comprehensive income		(81,541	)		(66,156	)		(52,688	)		(61,947	)		(70,227	)
Treasury stock, at cost;
7,350,981, 7,734,891, 7,734,891, 7,731,445, and 7,730,945 shares, respectively		(90,871	)		(94,918	)		(94,918	)		(94,873	)		(94,866	)
Unallocated common stock held by the Employee Stock Ownership Plan;
0, 0, 0, 0, and 4,833 shares, respectively		—			—			—			—			(39	)
Total stockholders' equity		1,157,871			1,162,308			1,165,066			992,125			963,618
Total liabilities and stockholders' equity	$	11,180,555		$	11,206,078		$	11,522,485		$	9,185,836		$	8,695,708

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
	Three Months Ended
	September 30, 2023		June 30, 2023		March 31, 2023		December 31, 2022		September 30, 2022
	(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases	$	136,561	$	132,299	$	121,931	$	98,386	$	84,375
Debt securities		6,799		8,034		7,870		3,497		3,337
Restricted equity securities		1,310		1,673		1,255		766		467
Short-term investments		2,390		3,351		1,495		754		464
Total interest and dividend income		147,060		145,357		132,551		103,403		88,643
Interest expense:
Deposits		49,116		43,147		29,368		14,185		7,354
Borrowed funds		13,874		16,173		17,134		9,188		3,263
Total interest expense		62,990		59,320		46,502		23,373		10,617
Net interest income		84,070		86,037		86,049		80,030		78,026
Provision for credit losses		2,947		5,726		25,344		5,671		2,845
Provision (credit) for investment losses		84		133		198		54		(10	)
Net interest income after provision for credit losses		81,039		80,178		60,507		74,305		75,191
Non-interest income:
Deposit fees		3,024		2,866		2,657		2,916		2,759
Loan fees		639		491		391		446		349
Loan level derivative income, net		376		363		2,373		670		1,275
Gain on investment securities, net		—		3		1,701		321		—
Gain on sales of loans and leases held-for-sale		225		308		1,638		2,612		889
Other		1,244		1,431		4,177		2,091		1,562
Total non-interest income		5,508		5,462		12,937		9,056		6,834
Non-interest expense:
Compensation and employee benefits		33,491		33,438		36,565		29,525		28,306
Occupancy		4,983		4,870		5,223		4,005		3,906
Equipment and data processing		6,766		6,531		6,462		5,758		5,066
Professional services		2,368		1,986		1,430		1,546		1,069
FDIC insurance		2,152		2,609		1,244		1,001		709
Advertising and marketing		1,174		1,382		1,410		1,052		1,337
Amortization of identified intangible assets		1,955		1,954		1,966		120		120
Merger and acquisition expense		—		1,002		6,409		641		1,073
Other		4,790		4,053		4,067		3,577		3,373
Total non-interest expense		57,679		57,825		64,776		47,225		44,959
Income before provision for income taxes		28,868		27,815		8,668		36,136		37,066
Provision for income taxes		6,167		5,965		1,108		6,441		6,917
Net income	$	22,701	$	21,850	$	7,560	$	29,695	$	30,149
Earnings per common share:
Basic	$	0.26	$	0.25	$	0.09	$	0.39	$	0.39
Diluted	$	0.26	$	0.25	$	0.09	$	0.39	$	0.39
Weighted average common shares outstanding during the period:
Basic		88,795,270		88,665,135		86,563,641		76,841,655		76,779,038
Diluted		88,971,210		88,926,543		86,837,806		77,065,076		77,007,971
Dividends paid per common share	$	0.135	$	0.135	$	0.135	$	0.135	$	0.130

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

	Nine Months Ended September 30,
		2023		2022
	(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases	$	390,791	$	230,383
Debt securities		22,703		9,582
Restricted equity securities		4,238		1,132
Short-term investments		7,236		686
Total interest and dividend income		424,968		241,783
Interest expense:
Deposits		121,631		15,407
Borrowed funds		47,181		6,635
Total interest expense		168,812		22,042
Net interest income		256,156		219,741
Provision for credit losses		34,017		2,854
Provision for investment losses		415		48
Net interest income after provision for credit losses		221,724		216,839
Non-interest income:
Deposit Fees		8,547		8,003
Loan Fees		1,521		1,762
Loan level derivative income, net		3,112		3,576
Gain on investment securities, net		1,704		—
Gain on sales of loans and leases held-for-sale		2,171		1,524
Other		6,852		4,426
Total non-interest income		23,907		19,291
Non-interest expense:
Compensation and employee benefits		103,494		83,962
Occupancy		15,076		11,997
Equipment and data processing		19,759		15,075
Professional services		5,784		3,514
FDIC insurance		6,005		2,176
Advertising and marketing		3,966		3,928
Amortization of identified intangible assets		5,875		374
Merger and acquisition expense		7,411		1,608
Other		12,910		9,683
Total non-interest expense		180,280		132,317
Income before provision for income taxes		65,351		103,813
Provision for income taxes		13,240		23,764
Net income	$	52,111	$	80,049
Earnings per common share:
Basic	$	0.59	$	1.04
Diluted	$	0.59	$	1.04
Weighted average common shares outstanding during the period:
Basic		88,016,190		77,159,356
Diluted		88,253,361		77,448,290
Dividends paid per common share	$	0.405	$	0.385

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Asset Quality Analysis (Unaudited)
	At and for the Three Months Ended
	September 30, 2023			June 30, 2023			March 31, 2023			December 31, 2022			September 30, 2022
	(Dollars in Thousands)
NONPERFORMING ASSETS:
Loans and leases accounted for on a nonaccrual basis:
Commercial real estate mortgage	$	23,263		$	8,737		$	4,589		$	607		$	3,136
Multi-family mortgage		1,318			—			—			—			—
Construction		2,316			3,828			3,883			707			—
Total commercial real estate loans		26,897			12,565			8,472			1,314			3,136

Commercial		5,406			16,023			5,495			464			618
Equipment financing		13,974			12,809			9,908			9,653			10,544
Condominium association		—			—			51			58			64
Total commercial loans and leases		19,380			28,832			15,454			10,175			11,226

Residential mortgage		4,249			4,343			3,449			2,680			2,741
Home equity		713			583			1,079			723			616
Other consumer		2			—			—			2			2
Total consumer loans		4,964			4,926			4,528			3,405			3,359

Total nonaccrual loans and leases		51,241			46,323			28,454			14,894			17,721

Other repossessed assets		299			602			508			408			591
Total nonperforming assets	$	51,540		$	46,925		$	28,962		$	15,302		$	18,312

Loans and leases past due greater than 90 days and still accruing	$	1,175		$	490		$	726		$	33		$	9,583

Nonperforming loans and leases as a percentage of total loans and leases		0.55	%		0.50	%		0.31	%		0.19	%		0.24	%
Nonperforming assets as a percentage of total assets		0.46	%		0.42	%		0.25	%		0.17	%		0.21	%

PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:
Allowance for loan and lease losses at beginning of period	$	125,817		$	120,865		$	98,482		$	94,169		$	93,188
Charge-offs		(10,978	)		(1,690	)		(845	)		(658	)		(598	)
Recoveries		4			593			394			348			777
Net (charge-offs) recoveries		(10,974	)		(1,097	)		(451	)		(310	)		179
Provision (credit) for loan and lease losses excluding unfunded commitments *		4,238			6,049			22,834			4,623			802
Allowance for loan and lease losses at end of period	$	119,081		$	125,817		$	120,865		$	98,482		$	94,169

Allowance for loan and lease losses as a percentage of total loans and leases		1.27	%		1.35	%		1.31	%		1.29	%		1.27	%

NET CHARGE-OFFS (RECOVERIES):
Commercial real estate loans	$	(3	)	$	(6	)	$	(6	)	$	(6	)	$	(6	)
Commercial loans and leases		10,958			1,108			457			320			(179	)
Consumer loans		19			(5	)		—			(4	)		6
Total net charge-offs (recoveries)	$	10,974		$	1,097		$	451		$	310		$	(179	)

Net loan and lease charge-offs as a percentage of average loans and leases (annualized)		0.47	%		0.05	%		0.02	%		0.02	%		(0.01	)%

*Provision for loan and lease losses does not include (credit) provision of $(1.3 million), $(0.3) million, $2.5 million, $1.0 million, and $2.0 million for credit losses on unfunded commitments during the three months ended September 30, 2023, June 30, 2023, March 31, 2023, December 31, 2022, and September 30, 2022, respectively.

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Average Yields / Costs (Unaudited)
	Three Months Ended
	September 30, 2023						June 30, 2023						September 30, 2022
	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)	$	887,612	$	6,840	3.08	%	$	1,000,440	$	8,091	3.23	%	$	714,226	$	3,337	1.87	%
Marketable and restricted equity securities (2)		67,824		1,310	7.73	%		77,364		1,673	8.65	%		36,525		467	5.12	%
Short-term investments		172,483		2,390	5.54	%		229,474		3,351	5.84	%		66,257		464	2.80	%
Total investments		1,127,919		10,540	3.74	%		1,307,278		13,115	4.01	%		817,008		4,268	2.09	%
Loans and Leases:
Commercial real estate loans (3)		5,667,373		78,750	5.44	%		5,640,491		79,582	5.58	%		4,239,155		44,729	4.13	%
Commercial loans (3)		939,492		15,295	6.38	%		913,732		13,502	5.85	%		731,095		8,492	4.55	%
Equipment financing (3)		1,280,033		23,331	7.29	%		1,253,199		22,357	7.14	%		1,157,829		19,042	6.58	%
Consumer loans (3)		1,471,985		19,237	5.21	%		1,482,799		16,903	4.56	%		1,206,968		12,165	4.02	%
Total loans and leases		9,358,883		136,613	5.84	%		9,290,221		132,344	5.70	%		7,335,047		84,428	4.60	%
Total interest-earning assets		10,486,802		147,153	5.61	%		10,597,499		145,459	5.49	%		8,152,055		88,696	4.35	%
Non-interest-earning assets		693,833						675,173						434,365
Total assets	$	11,180,635					$	11,272,672					$	8,586,420

Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts	$	681,929		1,159	0.67	%	$	735,001		1,069	0.58	%	$	607,210		579	0.38	%
Savings accounts		1,557,911		8,859	2.26	%		1,374,337		5,917	1.73	%		881,988		664	0.30	%
Money market accounts		2,177,528		15,785	2.88	%		2,140,522		13,989	2.62	%		2,423,920		4,038	0.66	%
Certificates of deposit		1,444,269		12,128	3.33	%		1,390,913		10,021	2.89	%		964,112		1,803	0.74	%
Brokered deposit accounts		882,351		11,185	5.03	%		975,700		12,151	5.00	%		117,058		270	0.92	%
Total interest-bearing deposits		6,743,988		49,116	2.89	%		6,616,473		43,147	2.62	%		4,994,288		7,354	0.58	%
Borrowings
Advances from the FHLBB		954,989		11,706	4.80	%		1,191,424		14,287	4.74	%		331,840		1,700	2.00	%
Subordinated debentures and notes		84,134		1,378	6.55	%		84,098		1,363	6.49	%		83,989		1,295	6.17	%
Other borrowed funds		117,531		790	2.67	%		86,896		523	2.41	%		89,019		268	1.20	%
Total borrowings		1,156,654		13,874	4.69	%		1,362,418		16,173	4.70	%		504,848		3,263	2.53	%
Total interest-bearing liabilities		7,900,642		62,990	3.16	%		7,978,891		59,320	2.98	%		5,499,136		10,617	0.77	%
Non-interest-bearing liabilities:
Demand checking accounts		1,794,225						1,849,393						1,908,459
Other non-interest-bearing liabilities		318,041						270,221						197,446
Total liabilities		10,012,908						10,098,505						7,605,041
Stockholders' equity		1,167,727						1,174,167						981,379
Total liabilities and equity	$	11,180,635					$	11,272,672					$	8,586,420
Net interest income (tax-equivalent basis) /Interest-rate spread (4)				84,163	2.45	%				86,139	2.51	%				78,079	3.58	%
Less adjustment of tax-exempt income				93						102						53
Net interest income			$	84,070					$	86,037					$	78,026
Net interest margin (5)					3.18	%					3.26	%					3.80	%

(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, 2023						September 30, 2022
	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)	$	971,855	$	22,905	3.14	%	$	720,266	$	9,582	1.77	%
Marketable and restricted equity securities (2)		74,000		4,238	7.64	%		31,663		1,132	4.77	%
Short-term investments		183,295		7,236	5.26	%		119,083		686	0.77	%
Total investments		1,229,150		34,379	3.73	%		871,012		11,400	1.75	%
Loans and Leases:
Commercial real estate loans (3)		5,629,600		225,999	5.29	%		4,204,260		119,723	3.76	%
Commercial loans (3)		915,420		42,814	6.17	%		727,333		23,564	4.28	%
Equipment financing (3)		1,253,512		66,901	7.12	%		1,131,069		54,951	6.48	%
Consumer loans (3)		1,469,025		55,210	5.01	%		1,191,294		32,304	3.62	%
Total loans and leases		9,267,557		390,924	5.62	%		7,253,956		230,542	4.24	%
Total interest-earning assets		10,496,707		425,303	5.40	%		8,124,968		241,942	3.97	%
Non-interest-earning assets		698,273						419,501
Total assets	$	11,194,980					$	8,544,469

Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts	$	741,951		3,129	0.56	%	$	603,243		898	0.20	%
Savings accounts		1,365,541		17,290	1.69	%		915,185		1,073	0.16	%
Money market accounts		2,227,404		41,914	2.52	%		2,423,207		7,681	0.42	%
Certificates of deposit		1,394,338		29,605	2.84	%		1,024,303		5,345	0.70	%
Brokered deposit accounts		798,800		29,693	4.97	%		121,724		410	0.45	%
Total interest-bearing deposits		6,528,034		121,631	2.49	%		5,087,662		15,407	0.40	%
Borrowings
Advances from the FHLBB		1,135,845		40,524	4.70	%		207,090		2,376	1.51	%
Subordinated debentures and notes		84,098		4,095	6.49	%		83,952		3,801	6.04	%
Other borrowed funds		120,825		2,562	2.83	%		108,337		458	0.57	%
Total borrowings		1,340,768		47,181	4.64	%		399,379		6,635	2.19	%
Total interest-bearing liabilities		7,868,802		168,812	2.87	%		5,487,041		22,042	0.54	%
Non-interest-bearing liabilities:
Demand checking accounts		1,857,429						1,891,698
Other non-interest-bearing liabilities		301,543						180,842
Total liabilities		10,027,774						7,559,581
Stockholders' equity		1,167,206						984,888
Total liabilities and equity	$	11,194,980					$	8,544,469
Net interest income (tax-equivalent basis) /Interest-rate spread (4)				256,491	2.53	%				219,900	3.43	%
Less adjustment of tax-exempt income				335						159
Net interest income			$	256,156					$	219,741
Net interest margin (5)					3.27	%					3.62	%

(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 September 30,						At and for the Nine Months Ended September 30,
					2023			2022			2023			2022
Reconciliation Table - Non-GAAP Financial Information				(Dollars in Thousands Except Share Data)						(Dollars in Thousands Except Share Data)

Reported Pretax Income				$	28,868		$	37,066		$	65,351		$	103,813
Less:
Security gains					—			—			1,704			—
Add:
Day 1 PCSB CECL provision					—			—			16,744			—
Merger and acquisition expense					—			1,073			7,411			1,608
Operating Pretax Income				$	28,868		$	38,139		$	87,802		$	105,421
Effective tax rate					21.4	%		18.7	%		20.3	%		22.9	%
Provision for income taxes					6,167			7,118			17,789			24,132
Operating earnings after tax				$	22,701		$	31,021		$	70,013		$	81,289

Operating earnings per common share:
Basic				$	0.26		$	0.40		$	0.80		$	1.05
Diluted				$	0.26		$	0.40		$	0.79		$	1.05

Weighted average common shares outstanding during the period:
Basic					88,795,270			76,779,038			88,016,190			77,159,356
Diluted					88,971,210			77,007,971			88,253,361			77,448,290


Return on average assets *					0.81	%		1.40	%		0.62	%		1.25	%
Less:
Security gains (after-tax) *					—	%		—	%		0.02	%		—	%
Add:
Day 1 PCSB CECL provision *					—	%		—	%		0.16	%		—	%
Merger and acquisition expense (after-tax) *					—	%		0.04	%		0.07	%		0.02	%
Operating return on average assets *					0.81	%		1.44	%		0.83	%		1.27	%


Return on average tangible assets *					0.83	%		1.43	%		0.64	%		1.27	%
Less:
Security gains (after-tax) *					—	%		—	%		0.02	%		—	%
Add:
Day 1 PCSB CECL provision *					—	%		—	%		0.16	%		—	%
Merger and acquisition expense (after-tax) *					—	%		0.04	%		0.07	%		0.02	%
Operating return on average tangible assets *					0.83	%		1.47	%		0.85	%		1.29	%


Return on average stockholders' equity *					7.78	%		12.29	%		5.95	%		10.84	%
Less:
Security gains (after-tax) *					—	%		—	%		0.16	%		—	%
Add:
Day 1 PCSB CECL provision *					—	%		—	%		1.53	%		—	%
Merger and acquisition expense (after-tax) *					—	%		0.36	%		0.68	%		0.17	%
Operating return on average stockholders' equity *					7.78	%		12.65	%		8.00	%		11.01	%


Return on average tangible stockholders' equity *					10.09	%		14.72	%		7.76	%		12.98	%
Less:
Security gains (after-tax) *					—	%		—	%		0.20	%		—	%
Add:
Day 1 PCSB CECL provision *					—	%		—	%		1.99	%		—	%
Merger and acquisition expense (after-tax) *					—	%		0.43	%		0.88	%		0.20	%
Operating return on average tangible stockholders' equity *					10.09	%		15.15	%		10.43	%		13.18	%

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

	At and for the Three Months Ended
	September 30, 2023			June 30, 2023			March 31, 2023			December 31, 2022			September 30, 2022
	(Dollars in Thousands)

Net income, as reported	$	22,701		$	21,850		$	7,560		$	29,695		$	30,149

Average total assets	$	11,180,635		$	11,272,672		$	11,131,087		$	8,857,631		$	8,586,420
Less: Average goodwill and average identified intangible assets, net		268,199			270,147			278,135			162,266			162,387
Average tangible assets	$	10,912,436		$	11,002,525		$	10,852,952		$	8,695,365		$	8,424,033

Return on average tangible assets (annualized)		0.83	%		0.79	%		0.28	%		1.37	%		1.43	%

Average total stockholders' equity	$	1,167,727		$	1,174,167		$	1,159,635		$	982,306		$	981,379
Less: Average goodwill and average identified intangible assets, net		268,199			270,147			278,135			162,266			162,387
Average tangible stockholders' equity	$	899,528		$	904,020		$	881,500		$	820,040		$	818,992

Return on average tangible stockholders' equity (annualized)		10.09	%		9.67	%		3.43	%		14.48	%		14.72	%

Total stockholders' equity	$	1,157,871		$	1,162,308		$	1,165,066		$	992,125		$	963,618
Less:
Goodwill		241,222			241,222			241,222			160,427			160,427
Identified intangible assets, net		26,172			28,126			30,080			1,781			1,902
Tangible stockholders' equity	$	890,477		$	892,960		$	893,764		$	829,917		$	801,289

Total assets	$	11,180,555		$	11,206,078		$	11,522,485		$	9,185,836		$	8,695,708
Less:
Goodwill		241,222			241,222			241,222			160,427			160,427
Identified intangible assets, net		26,172			28,126			30,080			1,781			1,902
Tangible assets	$	10,913,161		$	10,936,730		$	11,251,183		$	9,023,628		$	8,533,379

Tangible stockholders' equity to tangible assets		8.16	%		8.16	%		7.94	%		9.20	%		9.39	%

Tangible stockholders' equity	$	890,477		$	892,960		$	893,764		$	829,917		$	801,289

Number of common shares issued		96,998,075			96,998,075			96,998,075			85,177,172			85,177,172
Less:
Treasury shares		7,350,981			7,734,891			7,734,891			7,731,445			7,730,945
Unallocated ESOP shares		—			—			—			—			4,833
Unvested restricted shares		780,859			598,049			598,049			601,495			601,995
Number of common shares outstanding		88,866,235			88,665,135			88,665,135			76,844,232			76,839,399

Tangible book value per common share	$	10.02		$	10.07		$	10.08		$	10.80		$	10.43

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Brookline Bancorp Announces Third Quarter Results