BRKL Brookline Bancorp Inc

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 SUBSIDIARIESSelected 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 loans	4,832			5,607			7,423			3,851			2,947
Provision (credit) for credit losses on investments	(172)			(39)			(44)			(76)			84
Non-interest income	6,348			6,396			6,284			8,027			5,508
Non-interest expense	57,948			59,184			61,014			59,244			57,679
Income before provision for income taxes	26,748			21,645			19,479			28,563			28,868
Net income	20,142			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 — Diluted	0.23			0.18			0.16			0.26			0.26
Cash dividends declared	0.135			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 leases	9,755,236			9,721,137			9,655,086			9,641,589			9,380,782
Total deposits	8,732,271			8,737,036			8,718,653			8,548,125			8,566,013
Total stockholders’ equity	1,230,362			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 assets	0.62		%	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 leases	1.31		%	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 assets	10.54		%	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 SUBSIDIARIESConsolidated 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 investments	325,721			283,017			256,178			98,513			127,495
Total cash and cash equivalents	407,889			343,084			301,886			133,027			161,001
Investment securities available-for-sale	855,391			856,439			865,798			916,601			880,412
Total investment securities	855,391			856,439			865,798			916,601			880,412
Allowance for investment security losses	(186		)	(359		)	(398		)	(441		)	(517		)
Net investment securities	855,205			856,080			865,400			916,160			879,895
Loans and leases held-for-sale	—			—			6,717			—			—
Loans and leases:
Commercial real estate loans	5,779,290			5,782,111			5,755,239			5,764,529			5,669,768
Commercial loans and leases	2,453,038			2,443,530			2,416,904			2,399,668			2,241,375
Consumer loans	1,522,908			1,495,496			1,482,943			1,477,392			1,469,639
Total loans and leases	9,755,236			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 leases	9,627,920			9,599,387			9,534,962			9,524,067			9,261,701
Restricted equity securities	82,675			78,963			74,709			77,595			65,460
Premises and equipment, net of accumulated depreciation	86,925			88,378			89,707			89,853			90,476
Right-of-use asset operating leases	41,934			35,691			33,133			30,863			31,619
Deferred tax asset	50,827			60,032			60,484			56,952			74,491
Goodwill	241,222			241,222			241,222			241,222			241,222
Identified intangible assets, net of accumulated amortization	19,162			20,830			22,499			24,207			26,172
Other real estate owned and repossessed assets	1,579			1,974			1,817			1,694			299
Other assets	261,383			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 accounts	637,374			647,370			654,748			661,863			647,476
Savings accounts	1,736,989			1,735,857			1,727,893			1,669,018			1,625,804
Money market accounts	2,041,185			2,073,557			2,065,569			2,082,810			2,161,359
Certificate of deposit accounts	1,819,353			1,718,414			1,670,147			1,574,855			1,491,844
Brokered deposit accounts	815,512			923,460			970,925			881,173			894,393
Total deposits	8,732,271			8,737,036			8,718,653			8,548,125			8,566,013
Borrowed funds:
Advances from the FHLB	1,345,003			1,265,079			1,150,153			1,223,226			899,304
Subordinated debentures and notes	84,293			84,258			84,223			84,188			84,152
Other borrowed funds	68,251			80,125			127,505			69,256			151,612
Total borrowed funds	1,497,547			1,429,462			1,361,881			1,376,670			1,135,068
Operating lease liabilities	43,266			37,102			34,235			31,998			32,807
Mortgagors’ escrow accounts	14,456			17,117			16,245			17,239			12,578
Reserve for unfunded credits	6,859			11,400			15,807			19,767			21,497
Accrued expenses and other liabilities	151,960			204,695			201,679			189,813			254,721
Total liabilities	10,446,359			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, respectively	970			970			970			970			970
Additional paid-in capital	901,562			904,775			903,726			902,659			901,376
Retained earnings	453,555			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' equity	1,230,362			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 SUBSIDIARIESConsolidated 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 securities	6,473			6,480			6,878			6,945			6,799
Restricted equity securities	1,458			1,376			1,492			1,333			1,310
Short-term investments	1,986			1,914			1,824			1,093			2,390
Total interest and dividend income	159,560			155,355			155,459			152,319			147,060
Interest expense:
Deposits	59,796			59,721			56,884			54,034			49,116
Borrowed funds	16,756			15,633			16,987			14,730			13,874
Total interest expense	76,552			75,354			73,871			68,764			62,990
Net interest income	83,008			80,001			81,588			83,555			84,070
Provision for credit losses on loans	4,832			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 losses	78,348			74,433			74,209			79,780			81,039
Non-interest income:
Deposit fees	2,353			3,001			2,897			3,064			3,024
Loan fees	464			702			789			515			639
Loan level derivative income, net	—			106			437			778			376
Gain on sales of loans and leases held-for-sale	415			130			—			410			225
Other	3,116			2,457			2,161			3,260			1,244
Total non-interest income	6,348			6,396			6,284			8,027			5,508
Non-interest expense:
Compensation and employee benefits	35,130			34,762			36,629			35,401			33,491
Occupancy	5,343			5,551			5,769			5,127			4,983
Equipment and data processing	6,831			6,732			7,031			7,245			6,766
Professional services	2,143			1,745			1,900			1,442			2,368
FDIC insurance	2,118			2,025			1,884			1,839			2,152
Advertising and marketing	859			1,504			1,574			758			1,174
Amortization of identified intangible assets	1,668			1,669			1,708			1,965			1,955
Merger and restructuring expense	—			823			—			—			—
Other	3,856			4,373			4,519			5,467			4,790
Total non-interest expense	57,948			59,184			61,014			59,244			57,679
Income before provision for income taxes	26,748			21,645			19,479			28,563			28,868
Provision for income taxes	6,606			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:
Basic	89,033,463			88,904,692			88,894,577			88,867,159			88,795,270
Diluted	89,319,611			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 SUBSIDIARIESConsolidated 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 securities	19,831			22,703
Restricted equity securities	4,326			4,238
Short-term investments	5,724			7,236
Total interest and dividend income	470,374			424,968
Interest expense:
Deposits	176,401			121,631
Borrowed funds	49,376			47,181
Total interest expense	225,777			168,812
Net interest income	244,597			256,156
Provision for credit losses on loans	17,862			34,017
Provision (credit) for credit losses on investments	(255		)	415
Net interest income after provision for credit losses	226,990			221,724
Non-interest income:
Deposit Fees	8,251			8,547
Loan Fees	1,955			1,521
Loan level derivative income, net	543			3,112
Gain on investment securities, net	—			1,704
Gain on sales of loans and leases held-for-sale	545			2,171
Other	7,734			6,852
Total non-interest income	19,028			23,907
Non-interest expense:
Compensation and employee benefits	106,521			103,494
Occupancy	16,663			15,076
Equipment and data processing	20,594			19,759
Professional services	5,788			5,784
FDIC insurance	6,027			6,005
Advertising and marketing	3,937			3,966
Amortization of identified intangible assets	5,045			5,875
Merger and restructuring expense	823			7,411
Other	12,748			12,910
Total non-interest expense	178,146			180,280
Income before provision for income taxes	67,872			65,351
Provision for income taxes	16,693			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:
Basic	88,944,569			88,016,190
Diluted	89,241,470			88,253,361
Dividends paid per common share	$	0.405		$	0.405

BROOKLINE BANCORP, INC. AND SUBSIDIARIESAsset 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 mortgage	1,751			—			—			—			1,318
Construction	—			—			—			—			2,316
Total commercial real estate loans	13,346			11,659			18,394			19,608			26,897
Commercial	15,734			16,636			3,096			3,886			5,406
Equipment financing	37,223			27,128			13,668			14,984			13,974
Total commercial loans and leases	52,957			43,764			16,764			18,870			19,380
Residential mortgage	3,862			4,495			4,563			4,292			4,249
Home equity	1,076			790			950			860			713
Other consumer	1			1			1			—			2
Total consumer loans	4,939			5,286			5,514			5,152			4,964
Total nonaccrual loans and leases	71,242			60,709			40,672			43,630			51,241
Other real estate owned	780			780			780			780			—
Other repossessed assets	799			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 leases	0.73		%	0.62		%	0.42		%	0.45		%	0.55		%
Nonperforming assets as a percentage of total assets	0.62		%	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		)
Recoveries	375			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 leases	1.31		%	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 loans	11			(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 SUBSIDIARIESAverage Yields / Costs (Unaudited)
	Three Months Ended
	September 30, 2024						June 30, 2024						September 30, 2023
	AverageBalance		Interest(1)		AverageYield/Cost		AverageBalance		Interest(1)		AverageYield/Cost		AverageBalance		Interest(1)		AverageYield/ Cost
	(Dollars in Thousands)
Assets:
Interest-earning assets:
Investments:
Debt securities (2)	$	853,924	$	6,516	3.05	%	$	846,469	$	6,510	3.08	%	$	887,612	$	6,840	3.08	%
Restricted equity securities (2)	75,225		1,459		7.76	%	71,696		1,375		7.67	%	67,824		1,310		7.73	%
Short-term investments	145,838		1,986		5.44	%	143,800		1,914		5.33	%	172,483		2,390		5.54	%
Total investments	1,074,987		9,961		3.71	%	1,061,965		9,799		3.69	%	1,127,919		10,540		3.74	%
Loans and Leases:
Commercial real estate loans (3)	5,772,456		83,412		5.65	%	5,754,901		81,565		5.61	%	5,667,373		78,750		5.44	%
Commercial loans (3)	1,079,084		18,440		6.69	%	1,069,154		17,672		6.54	%	939,492		15,295		6.38	%
Equipment financing (3)	1,353,649		26,884		7.94	%	1,374,217		26,255		7.64	%	1,280,033		23,331		7.29	%
Consumer loans (3)	1,505,095		21,123		5.60	%	1,488,587		20,291		5.46	%	1,471,985		19,237		5.21	%
Total loans and leases	9,710,284		149,859		6.17	%	9,686,859		145,783		6.02	%	9,358,883		136,613		5.84	%
Total interest-earning assets	10,785,271		159,820		5.93	%	10,748,824		155,582		5.79	%	10,486,802		147,153		5.61	%
Non-interest-earning assets	666,067						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	$	639,561	1,115		0.69	%	$	659,351	1,111		0.68	%	$	681,929	1,159		0.67	%
Savings accounts	1,738,756		12,098		2.77	%	1,731,388		11,874		2.76	%	1,557,911		8,859		2.26	%
Money market accounts	2,038,048		15,466		3.02	%	2,026,780		15,520		3.08	%	2,177,528		15,785		2.88	%
Certificates of deposit	1,768,026		20,054		4.51	%	1,699,510		18,717		4.43	%	1,444,269		12,128		3.33	%
Brokered deposit accounts	841,067		11,063		5.23	%	958,146		12,499		5.25	%	882,351		11,185		5.03	%
Total interest-bearing deposits	7,025,458		59,796		3.39	%	7,075,175		59,721		3.39	%	6,743,988		49,116		2.89	%
Borrowings
Advances from the FHLB	1,139,049		14,366		4.94	%	1,049,609		12,894		4.86	%	954,989		11,706		4.80	%
Subordinated debentures and notes	84,276		1,378		6.54	%	84,241		1,375		6.53	%	84,134		1,378		6.55	%
Other borrowed funds	53,102		1,012		7.58	%	103,753		1,364		5.29	%	117,531		790		2.67	%
Total borrowings	1,276,427		16,756		5.14	%	1,237,603		15,633		5.00	%	1,156,654		13,874		4.69	%
Total interest-bearing liabilities	8,301,885		76,552		3.67	%	8,312,778		75,354		3.65	%	7,900,642		62,990		3.16	%
Non-interest-bearing liabilities:
Demand checking accounts	1,669,092						1,646,869						1,794,225
Other non-interest-bearing liabilities	264,324						300,362						318,041
Total liabilities	10,235,301						10,260,009						10,012,908
Stockholders’ equity	1,216,037						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)			83,268		2.26	%			80,228		2.14	%			84,163		2.45	%
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 SUBSIDIARIESAverage Yields / Costs (Unaudited)
	Nine Months Ended
	September 30, 2024						September 30, 2023
	AverageBalance		Interest(1)		AverageYield/Cost		AverageBalance		Interest(1)		AverageYield/Cost
	(Dollars in Thousands)
Assets:
Interest-earning assets:
Investments:
Debt securities (2)	$	864,501	$	19,953	3.08	%	$	971,855	$	22,905	3.14	%
Restricted equity securities (2)	74,422		4,327		7.75	%	74,000		4,238		7.64	%
Short-term investments	140,156		5,724		5.44	%	183,295		7,236		5.26	%
Total investments	1,079,079		30,004		3.71	%	1,229,150		34,379		3.73	%
Loans and Leases:
Commercial real estate loans (3)	5,763,065		246,026		5.61	%	5,629,600		225,999		5.29	%
Commercial loans (3)	1,058,312		53,619		6.66	%	915,420		42,814		6.17	%
Equipment financing (3)	1,367,380		80,034		7.80	%	1,253,512		66,901		7.12	%
Consumer loans (3)	1,492,213		61,392		5.49	%	1,469,025		55,210		5.01	%
Total loans and leases	9,680,970		441,071		6.07	%	9,267,557		390,924		5.62	%
Total interest-earning assets	10,760,049		471,075		5.84	%	10,496,707		425,303		5.40	%
Non-interest-earning assets	678,235						698,273
Total assets	$	11,438,284					$	11,194,980
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts	$	656,879	3,487		0.71	%	$	741,951	3,129		0.56	%
Savings accounts	1,721,518		35,324		2.74	%	1,365,541		17,290		1.69	%
Money market accounts	2,047,011		46,940		3.06	%	2,227,404		41,914		2.52	%
Certificates of deposit	1,697,477		55,443		4.36	%	1,394,338		29,605		2.84	%
Brokered deposit accounts	898,455		35,207		5.23	%	798,800		29,693		4.97	%
Total interest-bearing deposits	7,021,340		176,401		3.36	%	6,528,034		121,631		2.49	%
Borrowings
Advances from the FHLB	1,117,809		41,893		4.92	%	1,135,845		40,524		4.70	%
Subordinated debentures and notes	84,241		4,130		6.54	%	84,098		4,095		6.49	%
Other borrowed funds	83,195		3,353		5.38	%	120,825		2,562		2.83	%
Total borrowings	1,285,245		49,376		5.05	%	1,340,768		47,181		4.64	%
Total interest-bearing liabilities	8,306,585		225,777		3.63	%	7,868,802		168,812		2.87	%
Non-interest-bearing liabilities:
Demand checking accounts	1,646,932						1,857,429
Other non-interest-bearing liabilities	280,947						301,543
Total liabilities	10,234,464						10,027,774
Stockholders’ equity	1,203,820						1,167,206
Total liabilities and equity	$	11,438,284					$	11,194,980
Net interest income (tax-equivalent basis) /Interest-rate spread (4)			245,298		2.21	%			256,491		2.53	%
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 SUBSIDIARIESNon-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, net	261,188			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, net	261,188			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:
Goodwill	241,222			241,222			241,222			241,222			241,222
Identified intangible assets, net	19,162			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:
Goodwill	241,222			241,222			241,222			241,222			241,222
Identified intangible assets, net	19,162			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 assets	8.50		%	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 issued	96,998,075			96,998,075			96,998,075			96,998,075			96,998,075
Less:
Treasury shares	7,015,843			7,373,009			7,354,399			7,354,399			7,350,981
Unvested restricted shares	883,789			713,443			749,099			749,099			780,859
Number of common shares outstanding	89,098,443			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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