BRKL Brookline Bancorp Inc

Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced net income of $14.7 million, or $0.16 per basic and diluted share, for the first quarter of 2024, compared to net income of $22.9 million, or $0.26 per basic and diluted share, for the fourth quarter of 2023, and net income of $7.6 million, or $0.09 per basic and diluted share, for the first quarter of 2023.

Paul Perrault, Chairman and CEO, commented on the Company’s first quarter earnings, “Our Company, along with the rest of the banking industry, continues to face margin pressure. As we look ahead to the second quarter we are optimistic about the overall economic outlook in our markets. We remain active in our communities and our dedicated team of bankers continues to provide our customers with the exceptional service they have come to appreciate.”

BALANCE SHEET

Total assets at March 31, 2024 were $11.5 billion, representing an increase of $160.5 million from $11.4 billion at December 31, 2023, and an increase of $20.2 million from March 31, 2023. At March 31, 2024, total loans and leases were $9.7 billion, representing an increase of $13.5 million from December 31, 2023, and an increase of $408.1 million from March 31, 2023.

Total investment securities at March 31, 2024 decreased $50.8 million to $865.8 million from $916.6 million at December 31, 2023, and decreased $201.2 million from $1.1 billion at March 31, 2023. Total cash and cash equivalents at March 31, 2024 increased $168.9 million to $301.9 million from $133.0 million at December 31, 2023, and decreased $184.4 million from $486.3 million at March 31, 2023. As of March 31, 2024, total investment securities and total cash and cash equivalents represented 10.1 percent of total assets compared to 9.2 percent and 13.5 percent as of December 31, 2023 and March 31, 2023, respectively.

Total deposits at March 31, 2024 increased $170.5 million to $8.7 billion from $8.5 billion at December 31, 2023, consisting of an $80.8 million increase in customer deposits and an $89.8 million increase in brokered deposits, and increased $262.2 million from $8.5 billion at March 31, 2023, driven by growth in customer deposits.

Total borrowed funds at March 31, 2024 decreased $14.8 million to $1.4 billion from December 31, 2023, and decreased $268.2 million from $1.6 billion at March 31, 2023.

The ratio of stockholders’ equity to total assets was 10.35 percent at March 31, 2024, compared to 10.53 percent at December 31, 2023, and 10.11 percent at March 31, 2023. The ratio of tangible stockholders’ equity to tangible assets (non-GAAP) was 8.25 percent at March 31, 2024, as compared to 8.39 percent at December 31, 2023, and 7.94 percent at March 31, 2023. Tangible book value per common share (non-GAAP) decreased $0.03 from $10.50 at December 31, 2023 to $10.47 at March 31, 2024, and increased $0.39 from $10.08 at March 31, 2023.

NET INTEREST INCOME

Net interest income decreased $2.0 million to $81.6 million during the first quarter of 2024 from $83.6 million for the quarter ended December 31, 2023. The net interest margin decreased 9 basis points to 3.06 percent for the three months ended March 31, 2024 from 3.15 percent for the three months ended December 31, 2023, primarily driven by higher funding costs.

NON-INTEREST INCOME

Total non-interest income for the quarter ended March 31, 2024 decreased $1.7 million to $6.3 million from $8.0 million for the quarter ended December 31, 2023. The decrease was primarily driven by a decline of $1.1 million in other non-interest income which was primarily driven by the mark to market on interest rate swaps on participated loans of $0.8 million, a $0.4 million decline in gain on sales of loans and leases, and a $0.3 million decline in loan derivative income, net, partially offset by an increase of $0.3 million in loan fees.

PROVISION FOR CREDIT LOSSES

The Company recorded a provision for credit losses of $7.4 million for the quarter ended March 31, 2024, compared to $3.8 million for the quarter ended December 31, 2023. The increase in provision was largely driven by an increase in expected losses in the Company’s equipment finance businesses.

Total net charge-offs for the first quarter of 2024 were $8.8 million compared to $7.1 million in the fourth quarter of 2023. The $8.8 million in net charge-offs were largely driven by $4.7 million in commercial loans, the majority of which was previously specifically reserved for, and $3.5 million in equipment financing. The equipment financing charge-offs were largely small dollar specialty vehicle charge-offs. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis increased to 36 basis points for the first quarter of 2024 from 30 basis points for the fourth quarter of 2023.

The allowance for loan and lease losses represented 1.24 percent of total loans and leases at March 31, 2024, compared to 1.22 percent at December 31, 2023, and 1.31 percent at March 31, 2023.

ASSET QUALITY

The ratio of nonperforming loans and leases to total loans and leases was 0.42 percent at March 31, 2024, a decrease from 0.45 percent at December 31, 2023. Total nonaccrual loans and leases decreased $3.0 million to $40.7 million at March 31, 2024 from $43.6 million at December 31, 2023. The ratio of nonperforming assets to total assets was 0.37 percent at March 31, 2024, a decrease from 0.40 percent at December 31, 2023. Total nonperforming assets decreased $2.8 million to $42.5 million at March 31, 2024 from $45.3 million at December 31, 2023.

NON-INTEREST EXPENSE

Non-interest expense for the quarter ended March 31, 2024 increased $1.8 million to $61.0 million from $59.2 million for the quarter ended December 31, 2023. The increase was primarily driven by increases of $1.2 million in compensation and employee benefits expense, $0.8 million in advertising and marketing expense, $0.6 million in occupancy expense, and $0.5 million in professional services expense, partially offset by decreases of $0.9 million in other non-interest expense, $0.3 million in amortization of identified intangible assets expense, and $0.2 million in equipment and data processing expense.

PROVISION FOR INCOME TAXES

The effective tax rate was 24.7 percent for the three months ended March 31, 2024 compared to 19.9 percent for the three months ended December 31, 2023 and 12.8 percent for the three months ended March 31, 2023.

RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

The annualized return on average assets decreased to 0.51 percent during the first quarter 2024 from 0.81 percent for the fourth quarter of 2023.

The annualized return on average stockholders' equity decreased to 4.88 percent during the first quarter of 2024 from 7.82 percent for the fourth quarter of 2023. The annualized return on average tangible stockholders’ equity decreased to 6.26 percent for the first quarter of 2024 from 10.12 percent for the fourth quarter of 2023.

DIVIDEND DECLARED

The Company’s Board of Directors approved a dividend of $0.135 per share for the quarter ended March 31, 2024. The dividend will be paid on May 24, 2024 to stockholders of record on May 10, 2024.

CONFERENCE CALL

The Company will conduct a conference call/webcast at 1:30 PM Eastern Time on Thursday, April 25, 2024 to discuss the results for the quarter, business highlights and outlook. A copy of the Earnings Presentation is available on the Company’s website, www.brooklinebancorp.com. To listen to the call and view the Company’s Earnings Presentation, please join the call via https://events.q4inc.com/attendee/249109629. 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 923783). 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: 815015.

ABOUT BROOKLINE BANCORP, INC.

Brookline Bancorp, Inc., a bank holding company with $11.5 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. 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
	March 31,2024			December 31, 2023			September 30,2023			June 30,2023			March 31, 2023
	(Dollars In Thousands Except per Share Data)
Earnings Data:
Net interest income	$	81,588		$	83,555		$	84,070		$	86,037		$	86,049
Provision for credit losses on loans		7,423			3,851			2,947			5,726			25,344
Provision (credit) for credit losses on investments		(44	)		(76	)		84			133			198
Non-interest income		6,284			8,027			5,508			5,462			12,937
Non-interest expense		61,014			59,244			57,679			57,825			64,776
Income before provision for income taxes		19,479			28,563			28,868			27,815			8,668
Net income		14,665			22,888			22,701			21,850			7,560
Performance Ratios:
Net interest margin (1)		3.06	%		3.15	%		3.18	%		3.26	%		3.36	%
Interest-rate spread (1)		2.21	%		2.39	%		2.45	%		2.51	%		2.66	%
Return on average assets (annualized)		0.51	%		0.81	%		0.81	%		0.78	%		0.27	%
Return on average tangible assets (annualized) (non-GAAP)		0.53	%		0.83	%		0.83	%		0.79	%		0.28	%
Return on average stockholders' equity (annualized)		4.88	%		7.82	%		7.78	%		7.44	%		2.61	%
Return on average tangible stockholders' equity (annualized) (non-GAAP)		6.26	%		10.12	%		10.09	%		9.67	%		3.43	%
Efficiency ratio (2)		69.44	%		64.69	%		64.39	%		63.20	%		65.44	%
Per Common Share Data:
Net income — Basic	$	0.16		$	0.26		$	0.26		$	0.25		$	0.09
Net income — Diluted		0.16			0.26			0.26			0.25			0.09
Cash dividends declared		0.135			0.135			0.135			0.135			0.135
Book value per share (end of period)		13.43			13.48			13.03			13.11			13.14
Tangible book value per share (end of period) (non-GAAP)		10.47			10.50			10.02			10.07			10.08
Stock price (end of period)		9.96			10.91			9.11			8.74			10.50
Balance Sheet:
Total assets	$	11,542,731		$	11,382,256		$	11,180,555		$	11,206,078		$	11,522,485
Total loans and leases		9,655,086			9,641,589			9,380,782			9,340,799			9,246,965
Total deposits		8,718,653			8,548,125			8,566,013			8,517,013			8,456,462
Total stockholders’ equity		1,194,231			1,198,644			1,157,871			1,162,308			1,165,066
Asset Quality:
Nonperforming assets	$	42,489		$	45,324		$	51,540		$	46,925		$	28,962
Nonperforming assets as a percentage of total assets		0.37	%		0.40	%		0.46	%		0.42	%		0.25	%
Allowance for loan and lease losses	$	120,124		$	117,522		$	119,081		$	125,817		$	120,865
Allowance for loan and lease losses as a percentage of total loans and leases		1.24	%		1.22	%		1.27	%		1.35	%		1.31	%
Net loan and lease charge-offs	$	8,781		$	7,141		$	10,974		$	1,097		$	451
Net loan and lease charge-offs as a percentage of average loans and leases (annualized)		0.36	%		0.30	%		0.47	%		0.05	%		0.02	%
Capital Ratios:
Stockholders’ equity to total assets		10.35	%		10.53	%		10.36	%		10.37	%		10.11	%
Tangible stockholders’ equity to tangible assets (non-GAAP)		8.25	%		8.39	%		8.16	%		8.16	%		7.94	%
(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)
	March 31, 2024			December 31,2023			September 30,2023			June 30,2023			March 31, 2023
ASSETS	(In Thousands Except Share Data)
Cash and due from banks	$	45,708		$	34,514		$	33,506		$	44,323		$	30,782
Short-term investments		256,178			98,513			127,495			180,109			455,538
Total cash and cash equivalents		301,886			133,027			161,001			224,432			486,320
Investment securities available-for-sale		865,798			916,601			880,412			910,210			1,067,032
Total investment securities		865,798			916,601			880,412			910,210			1,067,032
Allowance for investment security losses		(398	)		(441	)		(517	)		(433	)		(301	)
Net investment securities		865,400			916,160			879,895			909,777			1,066,731
Loans and leases held-for-sale		6,717			—			—			—			—
Loans and leases:
Commercial real estate loans		5,755,239			5,764,529			5,669,768			5,670,771			5,610,414
Commercial loans and leases		2,416,904			2,399,668			2,241,375			2,193,027			2,147,149
Consumer loans		1,482,943			1,477,392			1,469,639			1,477,001			1,489,402
Total loans and leases		9,655,086			9,641,589			9,380,782			9,340,799			9,246,965
Allowance for loan and lease losses		(120,124	)		(117,522	)		(119,081	)		(125,817	)		(120,865	)
Net loans and leases		9,534,962			9,524,067			9,261,701			9,214,982			9,126,100
Restricted equity securities		74,709			77,595			65,460			71,421			86,230
Premises and equipment, net of accumulated depreciation		89,707			89,853			90,476			90,685			87,799
Right-of-use asset operating leases		33,133			30,863			31,619			31,774			30,067
Deferred tax asset		60,484			56,952			74,491			77,704			75,028
Goodwill		241,222			241,222			241,222			241,222			241,222
Identified intangible assets, net of accumulated amortization		22,499			24,207			26,172			28,126			30,080
Other real estate owned and repossessed assets		1,817			1,694			299			602			508
Other assets		310,195			286,616			348,219			315,353			292,400
Total assets	$	11,542,731		$	11,382,256		$	11,180,555		$	11,206,078		$	11,522,485
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand checking accounts	$	1,629,371		$	1,678,406		$	1,745,137		$	1,843,516		$	1,899,370
NOW accounts		654,748			661,863			647,476			699,119			757,411
Savings accounts		1,727,893			1,669,018			1,625,804			1,464,054			1,268,375
Money market accounts		2,065,569			2,082,810			2,161,359			2,166,570			2,185,971
Certificate of deposit accounts		1,670,147			1,574,855			1,491,844			1,410,905			1,362,970
Brokered deposit accounts		970,925			881,173			894,393			932,849			982,365
Total deposits		8,718,653			8,548,125			8,566,013			8,517,013			8,456,462
Borrowed funds:
Advances from the FHLB		1,150,153			1,223,226			899,304			1,043,381			1,458,457
Subordinated debentures and notes		84,223			84,188			84,152			84,116			84,080
Other borrowed funds		127,505			69,256			151,612			98,773			87,565
Total borrowed funds		1,361,881			1,376,670			1,135,068			1,226,270			1,630,102
Operating lease liabilities		34,235			31,998			32,807			33,021			31,373
Mortgagors’ escrow accounts		16,245			17,239			12,578			17,207			17,080
Reserve for unfunded credits		15,807			19,767			21,497			22,789			23,112
Accrued expenses and other liabilities		201,679			189,813			254,721			227,470			199,290
Total liabilities		10,348,500			10,183,612			10,022,684			10,043,770			10,357,419
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		903,726			902,659			901,376			905,084			904,174
Retained earnings		441,285			438,722			427,937			417,328			407,528
Accumulated other comprehensive income		(60,841	)		(52,798	)		(81,541	)		(66,156	)		(52,688	)
Treasury stock, at cost;
7,354,399, 7,354,399, 7,350,981, 7,734,891, and 7,734,891 shares, respectively		(90,909	)		(90,909	)		(90,871	)		(94,918	)		(94,918	)
Total stockholders' equity		1,194,231			1,198,644			1,157,871			1,162,308			1,165,066
Total liabilities and stockholders' equity	$	11,542,731		$	11,382,256		$	11,180,555		$	11,206,078		$	11,522,485

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
	Three Months Ended
	March 31, 2024			December 31,2023			September 30, 2023			June 30,2023			March 31, 2023
	(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases	$	145,265		$	142,948		$	136,561		$	132,299		$	121,931
Debt securities		6,878			6,945			6,799			8,034			7,870
Restricted equity securities		1,492			1,333			1,310			1,673			1,255
Short-term investments		1,824			1,093			2,390			3,351			1,495
Total interest and dividend income		155,459			152,319			147,060			145,357			132,551
Interest expense:
Deposits		56,884			54,034			49,116			43,147			29,368
Borrowed funds		16,987			14,730			13,874			16,173			17,134
Total interest expense		73,871			68,764			62,990			59,320			46,502
Net interest income		81,588			83,555			84,070			86,037			86,049
Provision for credit losses on loans		7,423			3,851			2,947			5,726			25,344
Provision (credit) for credit losses on investments		(44	)		(76	)		84			133			198
Net interest income after provision for credit losses		74,209			79,780			81,039			80,178			60,507
Non-interest income:
Deposit fees		2,897			3,064			3,024			2,866			2,657
Loan fees		789			515			639			491			391
Loan level derivative income, net		437			778			376			363			2,373
Gain on investment securities, net		—			—			—			3			1,701
Gain on sales of loans and leases held-for-sale		—			410			225			308			1,638
Other		2,161			3,260			1,244			1,431			4,177
Total non-interest income		6,284			8,027			5,508			5,462			12,937
Non-interest expense:
Compensation and employee benefits		36,629			35,401			33,491			33,438			36,565
Occupancy		5,769			5,127			4,983			4,870			5,223
Equipment and data processing		7,031			7,245			6,766			6,531			6,462
Professional services		1,900			1,442			2,368			1,986			1,430
FDIC insurance		1,884			1,839			2,152			2,609			1,244
Advertising and marketing		1,574			758			1,174			1,382			1,410
Amortization of identified intangible assets		1,708			1,965			1,955			1,954			1,966
Merger and acquisition expense		—			—			—			1,002			6,409
Other		4,519			5,467			4,790			4,053			4,067
Total non-interest expense		61,014			59,244			57,679			57,825			64,776
Income before provision for income taxes		19,479			28,563			28,868			27,815			8,668
Provision for income taxes		4,814			5,675			6,167			5,965			1,108
Net income	$	14,665		$	22,888		$	22,701		$	21,850		$	7,560
Earnings per common share:
Basic	$	0.16		$	0.26		$	0.26		$	0.25		$	0.09
Diluted	$	0.16		$	0.26		$	0.26		$	0.25		$	0.09
Weighted average common shares outstanding during the period:
Basic		88,894,577			88,867,159			88,795,270			88,665,135			86,563,641
Diluted		89,181,508			89,035,505			88,971,210			88,926,543			86,837,806
Dividends paid per common share	$	0.135		$	0.135		$	0.135		$	0.135		$	0.135

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Asset Quality Analysis (Unaudited)
	At and for the Three Months Ended
	March 31,2024			December 31,2023			September 30, 2023			June 30,2023			March 31,2023
	(Dollars in Thousands)
NONPERFORMING ASSETS:
Loans and leases accounted for on a nonaccrual basis:
Commercial real estate mortgage	$	18,394		$	19,608		$	23,263		$	8,737		$	4,589
Multi-family mortgage		—			—			1,318			—			—
Construction		—			—			2,316			3,828			3,883
Total commercial real estate loans		18,394			19,608			26,897			12,565			8,472
Commercial		3,096			3,886			5,406			16,023			5,495
Equipment financing		13,668			14,984			13,974			12,809			9,908
Condominium association		—			—			—			—			51
Total commercial loans and leases		16,764			18,870			19,380			28,832			15,454
Residential mortgage		4,563			4,292			4,249			4,343			3,449
Home equity		950			860			713			583			1,079
Other consumer		1			—			2			—			—
Total consumer loans		5,514			5,152			4,964			4,926			4,528
Total nonaccrual loans and leases		40,672			43,630			51,241			46,323			28,454
Other real estate owned		780			780			—			—			—
Other repossessed assets		1,037			914			299			602			508
Total nonperforming assets	$	42,489		$	45,324		$	51,540		$	46,925		$	28,962
Loans and leases past due greater than 90 days and still accruing	$	363		$	228		$	1,175		$	490		$	726
Nonperforming loans and leases as a percentage of total loans and leases		0.42	%		0.45	%		0.55	%		0.50	%		0.31	%
Nonperforming assets as a percentage of total assets		0.37	%		0.40	%		0.46	%		0.42	%		0.25	%
PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:
Allowance for loan and lease losses at beginning of period	$	117,522		$	119,081		$	125,817		$	120,865		$	98,482
Charge-offs		(5,390	)		(7,722	)		(10,978	)		(1,690	)		(845	)
Recoveries		309			581			4			593			394
Net charge-offs		(5,081	)		(7,141	)		(10,974	)		(1,097	)		(451	)
Provision for loan and lease losses excluding unfunded commitments *		7,683			5,582			4,238			6,049			22,834
Allowance for loan and lease losses at end of period	$	120,124		$	117,522		$	119,081		$	125,817		$	120,865
Allowance for loan and lease losses as a percentage of total loans and leases		1.24	%		1.22	%		1.27	%		1.35	%		1.31	%
NET CHARGE-OFFS:
Commercial real estate loans	$	606		$	1,087		$	(3	)	$	(6	)	$	(6	)
Commercial loans and leases **		8,179			6,061			10,958			1,108			457
Consumer loans		(4	)		(7	)		19			(5	)		—
Total net charge-offs	$	8,781		$	7,141		$	10,974		$	1,097		$	451
Net loan and lease charge-offs as a percentage of average loans and leases (annualized)		0.36	%		0.30	%		0.47	%		0.05	%		0.02	%
*Provision for loan and lease losses does not include (credit) provision of $(0.3 million), $(1.7 million), $(1.3 million), $(0.3 million), and $2.5 million for credit losses on unfunded commitments during the three months ended March 31, 2024, December 31, 2023, September 30, 2023, June 30, 2023, and March 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
	March 31, 2024							December 31, 2023								March 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)	$	893,228		$	6,927	3.10	%		$	876,350		$	6,986	3.19	%		$	1,029,068		$	7,974	3.10	%
Restricted equity securities (2)		76,335			1,493	7.82	%			67,567			1,334	7.90	%			76,911			1,255	6.53	%
Short-term investments		130,768			1,824	5.58	%			85,790			1,093	5.09	%			147,654			1,495	4.05	%
Total investments		1,100,331			10,244	3.72	%			1,029,707			9,413	3.66	%			1,253,633			10,724	3.42	%
Loans and Leases:
Commercial real estate loans (3)		5,761,735			81,049	5.56	%			5,727,930			81,653	5.58	%			5,579,977			67,667	4.85	%
Commercial loans (3)		1,026,467			17,507	6.75	%			969,603			16,296	6.58	%			892,522			14,017	6.28	%
Equipment financing (3)		1,374,426			26,895	7.83	%			1,347,589			25,211	7.48	%			1,226,717			21,213	6.92	%
Consumer loans (3)		1,482,819			19,978	5.40	%			1,475,580			19,888	5.37	%			1,452,072			19,070	5.28	%
Total loans and leases		9,645,447			145,429	6.03	%			9,520,702			143,048	6.01	%			9,151,288			121,967	5.33	%
Total interest-earning assets		10,745,778			155,673	5.79	%			10,550,409			152,461	5.78	%			10,404,921			132,691	5.10	%
Non-interest-earning assets		671,407								721,532								726,166
Total assets	$	11,417,185							$	11,271,941							$	11,131,087
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts	$	671,914			1,261	0.75	%		$	657,134			1,146	0.69	%		$	810,333			901	0.45	%
Savings accounts		1,694,220			11,352	2.69	%			1,658,144			10,684	2.56	%			1,160,003			2,514	0.88	%
Money market accounts		2,076,303			15,954	3.09	%			2,140,225			16,239	3.01	%			2,366,235			12,140	2.08	%
Certificates of deposit		1,624,118			16,672	4.13	%			1,530,772			14,517	3.76	%			1,346,761			7,456	2.25	%
Brokered deposit accounts		896,784			11,645	5.22	%			880,604			11,448	5.16	%			534,527			6,357	4.82	%
Total interest-bearing deposits		6,963,339			56,884	3.29	%			6,866,879			54,034	3.12	%			6,217,859			29,368	1.92	%
Borrowings
Advances from the FHLB		1,164,534			14,633	4.97	%			965,846			11,943	4.84	%			1,264,523			14,531	4.60	%
Subordinated debentures and notes		84,206			1,377	6.54	%			84,170			1,381	6.56	%			84,062			1,354	6.44	%
Other borrowed funds		93,060			977	4.22	%			136,566			1,406	4.09	%			158,499			1,249	3.20	%
Total borrowings		1,341,800			16,987	5.01	%			1,186,582			14,730	4.86	%			1,507,084			17,134	4.55	%
Total interest-bearing liabilities		8,305,139			73,871	3.58	%			8,053,461			68,764	3.39	%			7,724,943			46,502	2.44	%
Non-interest-bearing liabilities:
Demand checking accounts		1,631,472								1,723,849								1,930,162
Other non-interest-bearing liabilities		278,670								323,855								316,347
Total liabilities		10,215,281								10,101,165								9,971,452
Stockholders’ equity		1,201,904								1,170,776								1,159,635
Total liabilities and equity	$	11,417,185							$	11,271,941							$	11,131,087
Net interest income (tax-equivalent basis) /Interest-rate spread (4)					81,802	2.21	%						83,697	2.39	%						86,189	2.66	%
Less adjustment of tax-exempt income					214								142								140
Net interest income				$	81,588							$	83,555							$	86,049
Net interest margin (5)						3.06	%							3.15	%							3.36	%
(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)
										Three Months EndedMarch 31,
										2024			2023
Reconciliation Table - Non-GAAP Financial Information										(Dollars in Thousands Except Share Data)
Reported Pretax Income										$	19,479		$	8,668
Less:
Security gains											—			1,701
Add:
Day 1 PCSB CECL provision											—			16,744
Merger and acquisition expense											—			6,409
Operating Pretax Income										$	19,479		$	30,120
Effective tax rate											24.7	%		22.7	%
Provision for income taxes											4,814			6,837
Operating earnings after tax										$	14,665		$	23,283
Operating earnings per common share:
Basic										$	0.16		$	0.27
Diluted										$	0.16		$	0.27
Weighted average common shares outstanding during the period:
Basic											88,894,577			86,563,641
Diluted											89,181,508			86,837,806
Return on average assets *											0.51	%		0.27	%
Less:
Security gains (after-tax) *											—	%		0.05	%
Add:
Day 1 PCSB CECL provision (after-tax) *											—	%		0.47	%
Merger and acquisition expense (after-tax) *											—	%		0.18	%
Operating return on average assets *											0.51	%		0.87	%
Return on average tangible assets *											0.53	%		0.28	%
Less:
Security gains (after-tax) *											—	%		0.05	%
Add:
Day 1 PCSB CECL provision (after-tax) *											—	%		0.48	%
Merger and acquisition expense (after-tax) *											—	%		0.18	%
Operating return on average tangible assets *											0.53	%		0.89	%
Return on average stockholders' equity *											4.88	%		2.61	%
Less:
Security gains (after-tax) *											—	%		0.45	%
Add:
Day 1 PCSB CECL provision (after-tax) *											—	%		4.46	%
Merger and acquisition expense (after-tax) *											—	%		1.71	%
Operating return on average stockholders' equity *											4.88	%		8.33	%
Return on average tangible stockholders' equity *											6.26	%		3.43	%
Less:
Security gains (after-tax) *											—	%		0.60	%
Add:
Day 1 PCSB CECL provision (after-tax) *											—	%		5.87	%
Merger and acquisition expense (after-tax) *											—	%		2.25	%
Operating return on average tangible stockholders' equity *											6.26	%		10.95	%
* Ratios at and for the three months ended are annualized.
	At and for the Three Months Ended
	March 31,2024			December 31,2023			September 30,2023			June 30,2023			March 31,2023
	(Dollars in Thousands)
Net income, as reported	$	14,665		$	22,888		$	22,701		$	21,850		$	7,560
Average total assets	$	11,417,185		$	11,271,941		$	11,180,635		$	11,272,672		$	11,131,087
Less: Average goodwill and average identified intangible assets, net		264,536			266,225			268,199			270,147			278,135
Average tangible assets	$	11,152,649		$	11,005,716		$	10,912,436		$	11,002,525		$	10,852,952
Return on average tangible assets (annualized)		0.53	%		0.83	%		0.83	%		0.79	%		0.28	%
Average total stockholders’ equity	$	1,201,904		$	1,170,776		$	1,167,727		$	1,174,167		$	1,159,635
Less: Average goodwill and average identified intangible assets, net		264,536			266,225			268,199			270,147			278,135
Average tangible stockholders’ equity	$	937,368		$	904,551		$	899,528		$	904,020		$	881,500
Return on average tangible stockholders’ equity (annualized)		6.26	%		10.12	%		10.09	%		9.67	%		3.43	%
Total stockholders’ equity	$	1,194,231		$	1,198,644		$	1,157,871		$	1,162,308		$	1,165,066
Less:
Goodwill		241,222			241,222			241,222			241,222			241,222
Identified intangible assets, net		22,499			24,207			26,172			28,126			30,080
Tangible stockholders' equity	$	930,510		$	933,215		$	890,477		$	892,960		$	893,764
Total assets	$	11,542,731		$	11,382,256		$	11,180,555		$	11,206,078		$	11,522,485
Less:
Goodwill		241,222			241,222			241,222			241,222			241,222
Identified intangible assets, net		22,499			24,207			26,172			28,126			30,080
Tangible assets	$	11,279,010		$	11,116,827		$	10,913,161		$	10,936,730		$	11,251,183
Tangible stockholders’ equity to tangible assets		8.25	%		8.39	%		8.16	%		8.16	%		7.94	%
Tangible stockholders' equity	$	930,510		$	933,215		$	890,477		$	892,960		$	893,764
Number of common shares issued		96,998,075			96,998,075			96,998,075			96,998,075			96,998,075
Less:
Treasury shares		7,354,399			7,354,399			7,350,981			7,734,891			7,734,891
Unvested restricted shares		749,099			749,099			780,859			598,049			598,049
Number of common shares outstanding		88,894,577			88,894,577			88,866,235			88,665,135			88,665,135
Tangible book value per common share	$	10.47		$	10.50		$	10.02		$	10.07		$	10.08

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