BRKL Brookline Bancorp Inc

Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced net income of $17.5 million, or $0.20 per basic and diluted share, and excluding $3.4 million of merger-related charges, operating earnings after tax (non-GAAP) of $20.7 million, or $0.23 per basic and diluted share for the fourth quarter of 2024, compared to 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, and $22.9 million, or $0.26 per basic and diluted share, for the fourth quarter of 2023.

For the year ended December 31, 2024, the Company reported net income of $68.7 million, or $0.77 per basic and diluted share, compared to $75.0 million, or $0.85 per basic and diluted share, for the year ended December 31, 2023. For the year ended December 31, 2024, the Company reported operating earnings after tax (non-GAAP) of $72.4 million, or $0.81 per basic and diluted share, compared to $92.9 million, or $1.05 per basic and diluted share, for the year ended December 31, 2023.

Paul Perrault, Chairman and Chief Executive Officer, commented on the Company’s performance, “Brookline Bancorp had an excellent year in 2024. We finished the year with solid deposit and loan growth and are well positioned as we look forward to 2025. We are looking forward to 2025 and our recently announced strategic merger with Berkshire Hills Bancorp. I would like to recognize the contributions of our employees in contributing to our growth and success in 2024. Our employees exemplify the Brookline Bancorp culture of providing excellent customer service.”

BALANCE SHEET

Total assets at December 31, 2024 increased $228.6 million to $11.9 billion from $11.7 billion at September 30, 2024, and increased $523.1 million from $11.4 billion at December 31, 2023. At December 31, 2024, total loans and leases were $9.8 billion, representing an increase of $24.1 million from September 30, 2024, and an increase of $137.7 million from December 31, 2023.

Total investment securities at December 31, 2024 increased $39.6 million to $895.0 million from $855.4 million at September 30, 2024, and decreased $21.6 million from $916.6 million at December 31, 2023. Total cash and cash equivalents at December 31, 2024 increased $135.8 million to $543.7 million from $407.9 million at September 30, 2024, and increased $410.6 million from $133.0 million at December 31, 2023. As of December 31, 2024, total investment securities and total cash and cash equivalents represented 12.1 percent of total assets, compared to 10.8 percent and 9.2 percent as of September 30, 2024 and December 31, 2023, respectively.

Total deposits at December 31, 2024 increased $169.4 million to $8.9 billion from $8.7 billion at September 30, 2024, consisting of a $115.9 million increase in customer deposits and a $53.4 million increase in brokered deposits. Total deposits increased $353.5 million from $8.5 billion at December 31, 2023, primarily driven by growth in customer deposits.

Total borrowed funds at December 31, 2024 increased $22.3 million to $1.5 billion from September 30, 2024, and increased $143.2 million from $1.4 billion at December 31, 2023.

The ratio of stockholders’ equity to total assets was 10.26 percent at December 31, 2024, as compared to 10.54 percent at September 30, 2024, and 10.53 percent at December 31, 2023. The ratio of tangible stockholders’ equity to tangible assets (non-GAAP) was 8.27 percent at December 31, 2024, as compared to 8.50 percent at September 30, 2024, and 8.39 percent at December 31, 2023. Tangible book value per common share (non-GAAP) decreased $0.08 from $10.89 at September 30, 2024 to $10.81 at December 31, 2024, and increased $0.31 from $10.50 at December 31, 2023.

NET INTEREST INCOME

Net interest income increased $2.0 million to $85.0 million during the fourth quarter of 2024 from $83.0 million for the quarter ended September 30, 2024. The net interest margin increased 5 basis points to 3.12 percent for the three months ended December 31, 2024 from 3.07 percent for the three months ended September 30, 2024, primarily driven by lower funding costs partially offset by lower yields on loans and leases.

NON-INTEREST INCOME

Total non-interest income for the quarter ended December 31, 2024 increased $0.2 million to $6.6 million from $6.3 million for the quarter ended September 30, 2024. The increase was primarily driven by an increase of $1.1 million in loan level derivative income, net, partially offset by a decline of $0.8 million in mark to market on interest rate swaps.

PROVISION FOR CREDIT LOSSES

The Company recorded a provision for credit losses of $4.1 million for the quarter ended December 31, 2024, compared to $4.8 million for the quarter ended September 30, 2024. The decrease in the provision was largely driven by improving economic forecasts and stabilization in the volume of adversely graded credits.

Total net charge-offs for the fourth quarter of 2024 were $7.3 million, compared to $3.8 million in the third quarter of 2024. The $7.3 million in net charge-offs was driven by one large $5.1 million charge-off in equipment financing 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 30 basis points for the fourth quarter of 2024 from 16 basis points for the third quarter of 2024.

The allowance for loan and lease losses represented 1.28 percent of total loans and leases at December 31, 2024, compared to 1.31 percent at September 30, 2024, and 1.22 percent at December 31, 2023. The decrease in the ratio was driven by a reduction in specific reserves due to charge-offs in the quarter.

ASSET QUALITY

The ratio of total nonperforming loans and leases to total loans and leases was 0.71 percent at December 31, 2024 as compared to 0.73 percent at September 30, 2024. Total nonaccrual loans and leases decreased $1.9 million to $69.3 million at December 31, 2024 from $71.2 million at September 30, 2024. The ratio of nonperforming assets to total assets was 0.59 percent at December 31, 2024 as compared to 0.62 percent at September 30, 2024. Total nonperforming assets decreased $2.4 million to $70.5 million at December 31, 2024 from $72.8 million at September 30, 2024.

NON-INTEREST EXPENSE

Non-interest expense for the quarter ended December 31, 2024 increased $5.8 million to $63.7 million from $57.9 million for the quarter ended September 30, 2024. The increase was primarily driven by an increase of $3.4 million in merger and acquisition expense, and an increase of $2.1 million in compensation and employee benefits expense.

PROVISION FOR INCOME TAXES

The effective tax rate was 26.4 percent and 25.1 percent for the three and twelve months ended December 31, 2024 compared to 24.7 percent for the three months ended September 30, 2024 and 19.9 percent and 20.1 percent for the three and twelve months ended December 31, 2023.

RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

The annualized return on average assets decreased to 0.61 percent during the fourth quarter of 2024 compared to 0.70 percent for the third quarter of 2024; and was 0.60 percent for the year ended December 31, 2024, compared to 0.67 percent for the year ended December 31, 2023.

The annualized return on average tangible stockholders' equity (non-GAAP) decreased to 7.21 percent during the fourth quarter of 2024 compared to 8.44 percent for the third quarter of 2024; and was 7.24 percent for the year ended December 31, 2024 compared to 8.36 percent for the year ended December 31, 2023.

DIVIDEND DECLARED

The Company’s Board of Directors approved a dividend of $0.135 per share for the quarter ended December 31, 2024. The dividend will be paid on February 28, 2025 to stockholders of record on February 14, 2025.

PROPOSED TRANSACTION WITH BERKSHIRE HILLS BANCORP, INC.

On December 16, 2024, the Company, Berkshire Hills Bancorp, Inc. (“Berkshire”), and Commerce Acquisition Sub, Inc., a Delaware corporation and wholly-owned subsidiary of the Berkshire formed solely to facilitate the merger (“Merger Sub”), entered into an Agreement and Plan of Merger (the “Merger Agreement”). The Merger Agreement provides that, upon the terms and subject to the conditions set forth therein, Merger Sub will merge with and into Brookline, with Brookline as the surviving entity, and immediately thereafter, Brookline will merge with and into Berkshire, with Berkshire as the surviving entity (collectively, the “Merger”). As a result of the Merger, the separate corporate existence of the Company will cease, and Berkshire will continue as the surviving corporation. Under the terms of the Merger Agreement, which was unanimously approved by the Boards of Directors of both companies, each outstanding share of Company common stock will be exchanged for the right to receive 0.42 shares of Berkshire common stock. Holders of Company common stock will receive cash in lieu of fractional shares of Berkshire common stock. As a result of the proposed transaction and a $100 million common stock offering by Berkshire to support the proposed transaction, Berkshire stockholders will own approximately 51%, Brookline stockholders will own approximately 45%, and investors in new shares will own approximately 4% of the outstanding shares of the combined company. The proposed transaction is expected to close by the end of the second half of 2025, subject to satisfaction of customary closing conditions, including receipt of required regulatory approvals and approvals from Berkshire and the Company stockholders.

CONFERENCE CALL

The Company will conduct a conference call/webcast at 1:30 PM Eastern Time on Thursday, January 30, 2025 to discuss the results for the quarter, business highlights and outlook. A copy of the Earnings Presentation is available on the Company’s website, www.brooklinebancorp.com. To listen to the call and view the Company’s Earnings Presentation, please join the call via https://events.q4inc.com/attendee/129324302. To listen to the call without access to the slides, please dial 833-470-1428 (United States) or 404-975-4839 (internationally) and ask for the Brookline Bancorp, Inc. call (Access Code 138268). A recording 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: 646121.

ABOUT BROOKLINE BANCORP, INC.

Brookline Bancorp, Inc., a bank holding company with approximately $11.9 billion in assets and branch locations in eastern 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 Company provides commercial and retail banking services and cash management and investment services to customers throughout Central New England and the Lower Hudson Valley of New York State. More information about Brookline Bancorp, Inc. and its banks can be found at the following websites: www.brooklinebank.com, www.bankri.com and www.pcsb.com.

FORWARD-LOOKING STATEMENTS

Certain statements contained in this press release that are not historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We may also make forward-looking statements in other documents we file with the Securities and Exchange Commission ("SEC"), in our annual reports to shareholders, in press releases and other written materials, and in oral statements made by our officers, directors or employees. You can identify forward looking statements by the use of the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “assume,” “outlook,” “will,” “should,” and other expressions that predict or indicate future events and trends and which do not relate to historical matters, including statements regarding the Company’s business, credit quality, financial condition, liquidity and results of operations. Forward-looking statements may differ, possibly materially, from what is included in this press release due to factors and future developments that are uncertain and beyond the scope of the Company’s control. These include, but are not limited to, the occurrence of any event, change or other circumstances that could give rise to the right of the Company or Berkshire to terminate the merger agreement; the outcome of any legal proceedings that may be instituted against Berkshire or Company; delays in completing the proposed transaction with Berkshire; the failure to obtain necessary regulatory approvals (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the proposed transaction) or stockholder approvals, or to satisfy any of the other conditions to the proposed transaction on a timely basis or at all, including the ability of Berkshire and the Company to meet expectations regarding the timing, completion and accounting and tax treatments of the proposed transaction; the impact of certain restrictions during the pendency of the proposed transaction on the parties’ ability to pursue certain business opportunities and strategic transactions; diversion of management’s attention from ongoing business operations and opportunities; potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the proposed transaction; changes in interest rates; general economic conditions (including 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. CarlsonBrookline Bancorp, Inc.Co-President and Chief Financial and Strategy Officer(617) 425-5331carl.carlson@brkl.com

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Selected Financial Highlights (Unaudited)
	At and for the Three Months Ended															At and for the Twelve Months Ended
	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			December 31, 2024			December 31, 2023
	(Dollars In Thousands Except per Share Data)
Earnings Data:
Net interest income	$	84,988		$	83,008		$	80,001		$	81,588		$	83,555		$	329,585		$	339,711
Provision for credit losses on loans		4,141			4,832			5,607			7,423			3,851			22,003			37,868
Provision (credit) for credit losses on investments		(104	)		(172	)		(39	)		(44	)		(76	)		(359	)		339
Non-interest income		6,587			6,348			6,396			6,284			8,027			25,615			31,934
Non-interest expense		63,719			57,948			59,184			61,014			59,244			241,865			239,524
Income before provision for income taxes		23,819			26,748			21,645			19,479			28,563			91,691			93,914
Net income		17,536			20,142			16,372			14,665			22,888			68,715			74,999
Performance Ratios:
Net interest margin (1)		3.12	%		3.07	%		3.00	%		3.06	%		3.15	%		3.06	%		3.24	%
Interest-rate spread (1)		2.35	%		2.26	%		2.14	%		2.21	%		2.39	%		2.24	%		2.50	%
Return on average assets (annualized)		0.61	%		0.70	%		0.57	%		0.51	%		0.81	%		0.60	%		0.67	%
Return on average tangible assets (annualized) (non-GAAP)		0.62	%		0.72	%		0.59	%		0.53	%		0.83	%		0.61	%		0.69	%
Return on average stockholders' equity (annualized)		5.69	%		6.63	%		5.49	%		4.88	%		7.82	%		5.67	%		6.42	%
Return on average tangible stockholders' equity (annualized) (non-GAAP)		7.21	%		8.44	%		7.04	%		6.26	%		10.12	%		7.24	%		8.36	%
Efficiency ratio (2)		69.58	%		64.85	%		68.50	%		69.44	%		64.69	%		68.09	%		64.45	%
Per Common Share Data:
Net income — Basic	$	0.20		$	0.23		$	0.18		$	0.16		$	0.26		$	0.77		$	0.85
Net income — Diluted		0.20			0.23			0.18			0.16			0.26			0.77			0.85
Cash dividends declared		0.135			0.135			0.135			0.135			0.135			0.540			0.540
Book value per share (end of period)		13.71			13.81			13.48			13.43			13.48			13.71			13.48
Tangible book value per common share (end of period) (non-GAAP)		10.81			10.89			10.53			10.47			10.50			10.81			10.50
Stock price (end of period)		11.80			10.09			8.35			9.96			10.91			11.80			10.91
Balance Sheet:
Total assets	$	11,905,326		$	11,676,721		$	11,635,292		$	11,542,731		$	11,382,256		$	11,905,326		$	11,382,256
Total loans and leases		9,779,288			9,755,236			9,721,137			9,655,086			9,641,589			9,779,288			9,641,589
Total deposits		8,901,644			8,732,271			8,737,036			8,718,653			8,548,125			8,901,644			8,548,125
Total stockholders’ equity		1,221,939			1,230,362			1,198,480			1,194,231			1,198,644			1,221,939			1,198,644
Asset Quality:
Nonperforming assets	$	70,452		$	72,821		$	62,683		$	42,489		$	45,324		$	70,452		$	45,324
Nonperforming assets as a percentage of total assets		0.59	%		0.62	%		0.54	%		0.37	%		0.40	%		0.59	%		0.40	%
Allowance for loan and lease losses	$	125,083		$	127,316		$	121,750		$	120,124		$	117,522		$	125,083		$	117,522
Allowance for loan and lease losses as a percentage of total loans and leases		1.28	%		1.31	%		1.25	%		1.24	%		1.22	%		1.28	%		1.22	%
Net loan and lease charge-offs	$	7,252		$	3,808		$	8,387		$	8,781		$	7,141		$	28,228		$	19,663
Net loan and lease charge-offs as a percentage of average loans and leases (annualized)		0.30	%		0.16	%		0.35	%		0.36	%		0.30	%		0.29	%		0.21	%
Capital Ratios:
Stockholders’ equity to total assets		10.26	%		10.54	%		10.30	%		10.35	%		10.53	%		10.26	%		10.53	%
Tangible stockholders’ equity to tangible assets (non-GAAP)		8.27	%		8.50	%		8.23	%		8.25	%		8.39	%		8.27	%		8.39	%
(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)
	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
ASSETS	(In Thousands Except Share Data)
Cash and due from banks	$	64,673		$	82,168		$	60,067		$	45,708		$	34,514
Short-term investments		478,997			325,721			283,017			256,178			98,513
Total cash and cash equivalents		543,670			407,889			343,084			301,886			133,027
Investment securities available-for-sale		895,034			855,391			856,439			865,798			916,601
Total investment securities		895,034			855,391			856,439			865,798			916,601
Allowance for investment security losses		(82	)		(186	)		(359	)		(398	)		(441	)
Net investment securities		894,952			855,205			856,080			865,400			916,160
Loans and leases held-for-sale		—			—			—			6,717			—
Loans and leases:
Commercial real estate loans		5,716,114			5,779,290			5,782,111			5,755,239			5,764,529
Commercial loans and leases		2,506,664			2,453,038			2,443,530			2,416,904			2,399,668
Consumer loans		1,556,510			1,522,908			1,495,496			1,482,943			1,477,392
Total loans and leases		9,779,288			9,755,236			9,721,137			9,655,086			9,641,589
Allowance for loan and lease losses		(125,083	)		(127,316	)		(121,750	)		(120,124	)		(117,522	)
Net loans and leases		9,654,205			9,627,920			9,599,387			9,534,962			9,524,067
Restricted equity securities		83,155			82,675			78,963			74,709			77,595
Premises and equipment, net of accumulated depreciation		86,781			86,925			88,378			89,707			89,853
Right-of-use asset operating leases		43,527			41,934			35,691			33,133			30,863
Deferred tax asset		56,620			50,827			60,032			60,484			56,952
Goodwill		241,222			241,222			241,222			241,222			241,222
Identified intangible assets, net of accumulated amortization		17,461			19,162			20,830			22,499			24,207
Other real estate owned and repossessed assets		1,103			1,579			1,974			1,817			1,694
Other assets		282,630			261,383			309,651			310,195			286,616
Total assets	$	11,905,326		$	11,676,721		$	11,635,292		$	11,542,731		$	11,382,256
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand checking accounts	$	1,692,394		$	1,681,858		$	1,638,378		$	1,629,371		$	1,678,406
NOW accounts		617,246			637,374			647,370			654,748			661,863
Savings accounts		1,721,247			1,736,989			1,735,857			1,727,893			1,669,018
Money market accounts		2,116,360			2,041,185			2,073,557			2,065,569			2,082,810
Certificate of deposit accounts		1,885,444			1,819,353			1,718,414			1,670,147			1,574,855
Brokered deposit accounts		868,953			815,512			923,460			970,925			881,173
Total deposits		8,901,644			8,732,271			8,737,036			8,718,653			8,548,125
Borrowed funds:
Advances from the FHLB		1,355,926			1,345,003			1,265,079			1,150,153			1,223,226
Subordinated debentures and notes		84,328			84,293			84,258			84,223			84,188
Other borrowed funds		79,592			68,251			80,125			127,505			69,256
Total borrowed funds		1,519,846			1,497,547			1,429,462			1,361,881			1,376,670
Operating lease liabilities		44,785			43,266			37,102			34,235			31,998
Mortgagors’ escrow accounts		15,875			14,456			17,117			16,245			17,239
Reserve for unfunded credits		5,981			6,859			11,400			15,807			19,767
Accrued expenses and other liabilities		195,256			151,960			204,695			201,679			189,813
Total liabilities		10,683,387			10,446,359			10,436,812			10,348,500			10,183,612
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		902,584			901,562			904,775			903,726			902,659
Retained earnings		458,943			453,555			445,560			441,285			438,722
Accumulated other comprehensive income		(52,882	)		(38,081	)		(61,693	)		(60,841	)		(52,798	)
Treasury stock, at cost;
7,019,384 shares, 7,015,843 shares, 7,373,009 shares, 7,354,399 shares, and 7,354,399 shares, respectively		(87,676	)		(87,644	)		(91,132	)		(90,909	)		(90,909	)
Total stockholders' equity		1,221,939			1,230,362			1,198,480			1,194,231			1,198,644
Total liabilities and stockholders' equity	$	11,905,326		$	11,676,721		$	11,635,292		$	11,542,731		$	11,382,256

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
	Three Months Ended
	December 31,2024			September 30, 2024			June 30,2024			March 31, 2024			December 31, 2023
	(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases	$	147,436		$	149,643		$	145,585		$	145,265		$	142,948
Debt securities		6,421			6,473			6,480			6,878			6,945
Restricted equity securities		1,460			1,458			1,376			1,492			1,333
Short-term investments		2,830			1,986			1,914			1,824			1,093
Total interest and dividend income		158,147			159,560			155,355			155,459			152,319
Interest expense:
Deposits		56,562			59,796			59,721			56,884			54,034
Borrowed funds		16,597			16,756			15,633			16,987			14,730
Total interest expense		73,159			76,552			75,354			73,871			68,764
Net interest income		84,988			83,008			80,001			81,588			83,555
Provision for credit losses on loans		4,141			4,832			5,607			7,423			3,851
Credit for credit losses on investments		(104	)		(172	)		(39	)		(44	)		(76	)
Net interest income after provision for credit losses		80,951			78,348			74,433			74,209			79,780
Non-interest income:
Deposit fees		2,297			2,353			3,001			2,897			3,064
Loan fees		439			464			702			789			515
Loan level derivative income, net		1,115			—			106			437			778
Gain on sales of loans and leases		406			415			130			—			410
Other		2,330			3,116			2,457			2,161			3,260
Total non-interest income		6,587			6,348			6,396			6,284			8,027
Non-interest expense:
Compensation and employee benefits		37,202			35,130			34,762			36,629			35,401
Occupancy		5,393			5,343			5,551			5,769			5,127
Equipment and data processing		6,780			6,831			6,732			7,031			7,245
Professional services		1,345			2,143			1,745			1,900			1,442
FDIC insurance		2,017			2,118			2,025			1,884			1,839
Advertising and marketing		1,303			859			1,504			1,574			758
Amortization of identified intangible assets		1,701			1,668			1,669			1,708			1,965
Merger and restructuring expense		3,378			—			823			—			—
Other		4,600			3,856			4,373			4,519			5,467
Total non-interest expense		63,719			57,948			59,184			61,014			59,244
Income before provision for income taxes		23,819			26,748			21,645			19,479			28,563
Provision for income taxes		6,283			6,606			5,273			4,814			5,675
Net income	$	17,536		$	20,142		$	16,372		$	14,665		$	22,888
Earnings per common share:
Basic	$	0.20		$	0.23		$	0.18		$	0.16		$	0.26
Diluted	$	0.20		$	0.23		$	0.18		$	0.16		$	0.26
Weighted average common shares outstanding during the period:
Basic		89,098,443			89,033,463			88,904,692			88,894,577			88,867,159
Diluted		89,483,964			89,319,611			89,222,315			89,181,508			89,035,505
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)
	Twelve Months Ended December 31,
	2024			2023
	(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases	$	587,929		$	533,739
Debt securities		26,252			29,648
Restricted equity securities		5,786			5,571
Short-term investments		8,554			8,329
Total interest and dividend income		628,521			577,287
Interest expense:
Deposits		232,963			175,665
Borrowed funds		65,973			61,911
Total interest expense		298,936			237,576
Net interest income		329,585			339,711
Provision for credit losses on loans		22,003			37,868
(Credit) provision for credit losses on investments		(359	)		339
Net interest income after provision for credit losses		307,941			301,504
Non-interest income:
Deposit fees		10,548			11,611
Loan fees		2,394			2,036
Loan level derivative income, net		1,658			3,890
Gain on investment securities, net		—			1,704
Gain on sales of loans and leases		951			2,581
Other		10,064			10,112
Total non-interest income		25,615			31,934
Non-interest expense:
Compensation and employee benefits		143,723			138,895
Occupancy		22,056			20,203
Equipment and data processing		27,374			27,004
Professional services		7,133			7,226
FDIC insurance		8,044			7,844
Advertising and marketing		5,240			4,724
Amortization of identified intangible assets		6,746			7,840
Merger and restructuring expense		4,201			7,411
Other		17,348			18,377
Total non-interest expense		241,865			239,524
Income before provision for income taxes		91,691			93,914
Provision for income taxes		22,976			18,915
Net income	$	68,715		$	74,999
Earnings per common share:
Basic	$	0.77		$	0.85
Diluted	$	0.77		$	0.85
Weighted average common shares outstanding during the period:
Basic		88,983,248			88,230,681
Diluted		89,302,304			88,450,646
Dividends paid per common share	$	0.540		$	0.540

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Asset Quality Analysis (Unaudited)
	At and for the Three Months Ended
	December 31, 2024			September 30, 2024			June 30,2024			March 31, 2024			December 31, 2023
	(Dollars in Thousands)
NONPERFORMING ASSETS:
Loans and leases accounted for on a nonaccrual basis:
Commercial real estate mortgage	$	11,525		$	11,595		$	11,659		$	18,394		$	19,608
Multi-family mortgage		6,596			1,751			—			—			—
Construction		—			—			—			—			—
Total commercial real estate loans		18,121			13,346			11,659			18,394			19,608
Commercial		14,676			15,734			16,636			3,096			3,886
Equipment financing		31,509			37,223			27,128			13,668			14,984
Total commercial loans and leases		46,185			52,957			43,764			16,764			18,870
Residential mortgage		3,999			3,862			4,495			4,563			4,292
Home equity		1,043			1,076			790			950			860
Other consumer		1			1			1			1			—
Total consumer loans		5,043			4,939			5,286			5,514			5,152
Total nonaccrual loans and leases		69,349			71,242			60,709			40,672			43,630
Other real estate owned		700			780			780			780			780
Other repossessed assets		403			799			1,194			1,037			914
Total nonperforming assets	$	70,452		$	72,821		$	62,683		$	42,489		$	45,324
Loans and leases past due greater than 90 days and still accruing	$	811		$	16,091		$	4,994		$	363		$	228
Nonperforming loans and leases as a percentage of total loans and leases		0.71	%		0.73	%		0.62	%		0.42	%		0.45	%
Nonperforming assets as a percentage of total assets		0.59	%		0.62	%		0.54	%		0.37	%		0.40	%
PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:
Allowance for loan and lease losses at beginning of period	$	127,316		$	121,750		$	120,124		$	117,522		$	119,081
Charge-offs		(8,414	)		(4,183	)		(8,823	)		(5,390	)		(7,722	)
Recoveries		1,162			375			436			309			581
Net charge-offs		(7,252	)		(3,808	)		(8,387	)		(5,081	)		(7,141	)
Provision for loan and lease losses excluding unfunded commitments *		5,019			9,374			10,013			7,683			5,582
Allowance for loan and lease losses at end of period	$	125,083		$	127,316		$	121,750		$	120,124		$	117,522
Allowance for loan and lease losses as a percentage of total loans and leases		1.28	%		1.31	%		1.25	%		1.24	%		1.22	%
NET CHARGE-OFFS:
Commercial real estate loans	$	—		$	—		$	3,819		$	606		$	1,087
Commercial loans and leases **		7,257			3,797			4,571			8,179			6,061
Consumer loans		(5	)		11			(3	)		(4	)		(7	)
Total net charge-offs	$	7,252		$	3,808		$	8,387		$	8,781		$	7,141
Net loan and lease charge-offs as a percentage of average loans and leases (annualized)		0.30	%		0.16	%		0.35	%		0.36	%		0.30	%
*Provision for loan and lease losses does not include (credit) provision of $(0.9 million), $(4.5 million), $(4.4 million), $(0.3 million), and $(1.7 million) for credit losses on unfunded commitments during the three months ended December 31, 2024, September 30, 2024, June 30, 2024, March 31, 2024, and December 31, 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
	December 31, 2024						September 30, 2024						December 31, 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)	$	856,065	$	6,463	3.02	%	$	853,924	$	6,516	3.05	%	$	876,350	$	6,986	3.19	%
Restricted equity securities (2)		75,879		1,459	7.69	%		75,225		1,459	7.76	%		67,567		1,334	7.90	%
Short-term investments		236,784		2,830	4.78	%		145,838		1,986	5.44	%		85,790		1,093	5.09	%
Total investments		1,168,728		10,752	3.68	%		1,074,987		9,961	3.71	%		1,029,707		9,413	3.66	%
Loans and Leases:
Commercial real estate loans (3)		5,752,591		81,195	5.52	%		5,772,456		83,412	5.65	%		5,727,930		81,653	5.58	%
Commercial loans (3)		1,170,295		19,750	6.61	%		1,079,084		18,440	6.69	%		969,603		16,296	6.58	%
Equipment financing (3)		1,310,143		26,295	8.03	%		1,353,649		26,884	7.94	%		1,347,589		25,211	7.48	%
Consumer loans (3)		1,529,654		20,881	5.44	%		1,505,095		21,123	5.60	%		1,475,580		19,888	5.37	%
Total loans and leases		9,762,683		148,121	6.07	%		9,710,284		149,859	6.17	%		9,520,702		143,048	6.01	%
Total interest-earning assets		10,931,411		158,873	5.81	%		10,785,271		159,820	5.93	%		10,550,409		152,461	5.78	%
Non-interest-earning assets		649,161						666,067						721,532
Total assets	$	11,580,572					$	11,451,338					$	11,271,941
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts	$	630,408		1,056	0.67	%	$	639,561		1,115	0.69	%	$	657,134		1,146	0.69	%
Savings accounts		1,741,355		10,896	2.49	%		1,738,756		12,098	2.77	%		1,658,144		10,684	2.56	%
Money market accounts		2,083,033		13,856	2.65	%		2,038,048		15,466	3.02	%		2,140,225		16,239	3.01	%
Certificates of deposit		1,857,483		20,691	4.43	%		1,768,026		20,054	4.51	%		1,530,772		14,517	3.76	%
Brokered deposit accounts		797,910		10,063	5.02	%		841,067		11,063	5.23	%		880,604		11,448	5.16	%
Total interest-bearing deposits		7,110,189		56,562	3.16	%		7,025,458		59,796	3.39	%		6,866,879		54,034	3.12	%
Borrowings:
Advances from the FHLB		1,144,157		13,958	4.77	%		1,139,049		14,366	4.94	%		965,846		11,943	4.84	%
Subordinated debentures and notes		84,311		1,944	9.22	%		84,276		1,378	6.54	%		84,170		1,381	6.56	%
Other borrowed funds		65,947		695	4.20	%		53,102		1,012	7.58	%		136,566		1,406	4.09	%
Total borrowings		1,294,415		16,597	5.02	%		1,276,427		16,756	5.14	%		1,186,582		14,730	4.86	%
Total interest-bearing liabilities		8,404,604		73,159	3.46	%		8,301,885		76,552	3.67	%		8,053,461		68,764	3.39	%
Non-interest-bearing liabilities:
Demand checking accounts		1,693,138						1,669,092						1,723,849
Other non-interest-bearing liabilities		250,303						264,324						323,855
Total liabilities		10,348,045						10,235,301						10,101,165
Stockholders’ equity		1,232,527						1,216,037						1,170,776
Total liabilities and equity	$	11,580,572					$	11,451,338					$	11,271,941
Net interest income (tax-equivalent basis) /Interest-rate spread (4)				85,714	2.35	%				83,268	2.26	%				83,697	2.39	%
Less adjustment of tax-exempt income				726						260						142
Net interest income			$	84,988					$	83,008					$	83,555
Net interest margin (5)					3.12	%					3.07	%					3.15	%
(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.

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Average Yields / Costs (Unaudited)
	Twelve Months Ended
	December 31, 2024						December 31, 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)	$	862,381	$	26,416	3.06	%	$	947,782	$	29,891	3.15	%
Restricted equity securities (2)		74,788		5,786	7.74	%		72,264		5,572	7.71	%
Short-term investments		164,445		8,554	5.20	%		158,718		8,329	5.25	%
Total investments		1,101,614		40,756	3.70	%		1,178,764		43,792	3.72	%
Loans and Leases:
Commercial real estate loans (3)		5,760,432		327,221	5.59	%		5,654,385		307,652	5.37	%
Commercial loans (3)		1,086,460		73,369	6.65	%		929,077		59,110	6.28	%
Equipment financing (3)		1,352,993		106,329	7.86	%		1,277,224		92,112	7.21	%
Consumer loans (3)		1,501,626		82,273	5.47	%		1,470,677		75,098	5.10	%
Total loans and leases		9,701,511		589,192	6.07	%		9,331,363		533,972	5.72	%
Total interest-earning assets		10,803,125		629,948	5.83	%		10,510,127		577,764	5.50	%
Non-interest-earning assets		670,299						704,244
Total assets	$	11,473,424					$	11,214,371
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts	$	650,225		4,543	0.70	%	$	720,572		4,275	0.59	%
Savings accounts		1,726,504		46,220	2.68	%		1,439,293		27,974	1.94	%
Money market accounts		2,056,066		60,796	2.96	%		2,205,430		58,153	2.64	%
Certificates of deposit		1,737,697		76,134	4.38	%		1,428,727		44,122	3.09	%
Brokered deposit accounts		873,182		45,270	5.18	%		819,419		41,141	5.02	%
Total interest-bearing deposits		7,043,674		232,963	3.31	%		6,613,441		175,665	2.66	%
Borrowings:
Advances from the FHLB		1,124,432		55,851	4.89	%		1,092,996		52,467	4.73	%
Subordinated debentures and notes		84,258		6,074	7.21	%		84,116		5,476	6.51	%
Other borrowed funds		78,859		4,048	5.13	%		124,793		3,968	3.18	%
Total borrowings		1,287,549		65,973	5.04	%		1,301,905		61,911	4.69	%
Total interest-bearing liabilities		8,331,223		298,936	3.59	%		7,915,346		237,576	3.00	%
Non-interest-bearing liabilities:
Demand checking accounts		1,657,922						1,823,759
Other non-interest-bearing liabilities		273,243						307,160
Total liabilities		10,262,388						10,046,265
Stockholders’ equity		1,211,036						1,168,106
Total liabilities and equity	$	11,473,424					$	11,214,371
Net interest income (tax-equivalent basis) /Interest-rate spread (4)				331,012	2.24	%				340,188	2.50	%
Less adjustment of tax-exempt income				1,427						477
Net interest income			$	329,585					$	339,711
Net interest margin (5)					3.06	%					3.24	%
(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.

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Non-GAAP Financial Information (Unaudited)
										At and for the Three Months EndedDecember 31,						At and for the Twelve Months Ended December 31,
										2024			2023			2024			2023
Reconciliation Table - Non-GAAP Financial Information										(Dollars in Thousands Except Share Data)
Reported Pretax Income										$	23,819		$	28,563		$	91,691		$	93,914
Less:
Security gains											—			—			—			1,704
Add:
Day 1 PCSB CECL provision											—			—			—			16,744
Merger and acquisition expenses											3,378			—			4,201			7,411
Operating Pretax income										$	27,197		$	28,563		$	95,892		$	116,365
Effective tax rate											23.9	%		19.9	%		24.5	%		20.1	%
Provision for income tax											6,511			5,675			23,480			23,437
Operating earnings after tax										$	20,686		$	22,888		$	72,412		$	92,928
Operating earnings per common share:
Basic										$	0.23		$	0.26		$	0.81		$	1.05
Diluted										$	0.23		$	0.26		$	0.81		$	1.05
Weighted average common shares outstanding during the period:
Basic											89,098,443			88,867,159			88,983,248			88,230,681
Diluted											89,483,964			89,035,505			89,302,304			88,450,646
Return on average assets *											0.61	%		0.81	%		0.60	%		0.67	%
Less:
Security gains (after-tax) *											—	%		—	%		—	%		0.01	%
Add:
Day 1 PCSB CECL provision (after-tax) *											—	%		—	%		—	%		0.12	%
Merger and acquisition expenses (after-tax) *											0.09	%		—	%		0.03	%		0.05	%
Operating return on average assets *											0.70	%		0.81	%		0.63	%		0.83	%
Return on average tangible assets *											0.62	%		0.83	%		0.61	%		0.69	%
Less:
Security gains (after-tax) *											—	%		—	%		—	%		0.01	%
Add:
Day 1 PCSB CECL provision (after-tax) *											—	%		—	%		—	%		0.12	%
Merger and acquisition expenses (after-tax) *											0.09	%		—	%		0.03	%		0.05	%
Operating return on average tangible assets *											0.71	%		0.83	%		0.64	%		0.85	%
Return on average stockholders' equity *											5.69	%		7.82	%		5.67	%		6.42	%
Less:
Security gains (after-tax) *											—	%		—	%		—	%		0.12	%
Add:
Day 1 PCSB CECL provision (after-tax) *											—	%		—	%		—	%		1.14	%
Merger and acquisition expenses (after-tax) *											0.83	%		—	%		0.26	%		0.51	%
Operating return on average stockholders' equity *											6.52	%		7.82	%		5.93	%		7.95	%
Return on average tangible stockholders' equity *											7.21	%		10.12	%		7.24	%		8.36	%
Less:
Security gains (after-tax) *											—	%		—	%		—	%		0.15	%
Add:
Day 1 PCSB CECL provision (after-tax) *											—	%		—	%		—	%		1.49	%
Merger and acquisition expenses (after-tax) *											1.06	%		—	%		0.33	%		0.66	%
Operating return on average tangible stockholders' equity *											8.27	%		10.12	%		7.57	%		10.36	%
* Ratios at and for the three months ended are annualized.
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Non-GAAP Financial Information (Unaudited)
	At and for the Three Months Ended															At and for the TwelveMonths Ended
	December 31, 2024			September 30, 2024			June 30, 2024			March 31,2024			December 31,2023			December 31, 2024			December 31, 2023
	(Dollars in Thousands)
Net income, as reported	$	17,536		$	20,142		$	16,372		$	14,665		$	22,888		$	68,715		$	74,999
Average total assets	$	11,580,572		$	11,451,338		$	11,453,394		$	11,417,185		$	11,271,941		$	11,473,424		$	11,214,371
Less: Average goodwill and average identified intangible assets, net		259,496			261,188			262,859			264,536			266,225			262,011			270,637
Average tangible assets	$	11,321,076		$	11,190,150		$	11,190,535		$	11,152,649		$	11,005,716		$	11,211,413		$	10,943,734
Return on average tangible assets (annualized)		0.62	%		0.72	%		0.59	%		0.53	%		0.83	%		0.61	%		0.69	%
Average total stockholders’ equity	$	1,232,527		$	1,216,037		$	1,193,385		$	1,201,904		$	1,170,776		$	1,211,036		$	1,168,106
Less: Average goodwill and average identified intangible assets, net		259,496			261,188			262,859			264,536			266,225			262,011			270,637
Average tangible stockholders’ equity	$	973,031		$	954,849		$	930,526		$	937,368		$	904,551		$	949,025		$	897,469
Return on average tangible stockholders’ equity (annualized)		7.21	%		8.44	%		7.04	%		6.26	%		10.12	%		7.24	%		8.36	%
Total stockholders’ equity	$	1,221,939		$	1,230,362		$	1,198,480		$	1,194,231		$	1,198,644		$	1,221,939		$	1,198,644
Less:
Goodwill		241,222			241,222			241,222			241,222			241,222			241,222			241,222
Identified intangible assets, net		17,461			19,162			20,830			22,499			24,207			17,461			24,207
Tangible stockholders' equity	$	963,256		$	969,978		$	936,428		$	930,510		$	933,215		$	963,256		$	933,215
Total assets	$	11,905,326		$	11,676,721		$	11,635,292		$	11,542,731		$	11,382,256		$	11,905,326		$	11,382,256
Less:
Goodwill		241,222			241,222			241,222			241,222			241,222			241,222			241,222
Identified intangible assets, net		17,461			19,162			20,830			22,499			24,207			17,461			24,207
Tangible assets	$	11,646,643		$	11,416,337		$	11,373,240		$	11,279,010		$	11,116,827		$	11,646,643		$	11,116,827
Tangible stockholders’ equity to tangible assets		8.27	%		8.50	%		8.23	%		8.25	%		8.39	%		8.27	%		8.39	%
Tangible stockholders' equity	$	963,256		$	969,978		$	936,428		$	930,510		$	933,215		$	963,256		$	933,215
Number of common shares issued		96,998,075			96,998,075			96,998,075			96,998,075			96,998,075			96,998,075			96,998,075
Less:
Treasury shares		7,019,384			7,015,843			7,373,009			7,354,399			7,354,399			7,019,384			7,354,399
Unvested restricted shares		880,248			883,789			713,443			749,099			749,099			880,248			749,099
Number of common shares outstanding		89,098,443			89,098,443			88,911,623			88,894,577			88,894,577			89,098,443			88,894,577
Tangible book value per common share	$	10.81		$	10.89		$	10.53		$	10.47		$	10.50		$	10.81		$	10.50

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