Brookline Bancorp Announces Fourth Quarter Results

Net Income of $22.9 million, EPS of $0.26

Quarterly Dividend of $0.135

BOSTON, Jan. 24, 2024 (GLOBE NEWSWIRE) -- Brookline Bancorp, Inc. (NASDAQ:BRKL) (the "Company") today announced net income of $22.9 million, or $0.26 per basic and diluted share, for the fourth quarter of 2023, compared to $22.7 million, or $0.26 per basic and diluted share, for the third quarter of 2023, and $29.7 million, or $0.39 per basic and diluted share, for the fourth quarter of 2022.

For the year ended December 31, 2023, the Company reported net income of $75.0 million, or $0.85 per basic and diluted share, compared to $109.7 million, or $1.42 per basic and diluted share, for the year ended December 31, 2022. For the year ended December 31, 2023, the Company reported operating earnings of $92.9 million, or $1.05 per basic and diluted share, compared to $111.3 million, or $1.44 per basic and diluted share, for the year ended December 31, 2022.

Brookline Bancorp, Inc. CEO and Chairman Paul Perrault commented on 2023 performance, "Brookline Bancorp began the year by welcoming PCSB Bank customers and employees to our family of banks. I would like to thank our customers and the continued hard work and dedication of all our Company's employees to our overall success in 2023. In 2023, our industry experienced challenging headwinds. As we enter 2024, we remain well positioned to take advantage of opportunities in the tremendous markets we serve."

BALANCE SHEET

Total assets at December 31, 2023 increased $201.7 million to $11.4 billion from $11.2 billion at September 30, 2023, and increased $2.2 billion from $9.2 billion at December 31, 2022. At December 31, 2023, total loans and leases were $9.6 billion, representing an increase of $260.8 million from September 30, 2023, and an increase of $2.0 billion from December 31, 2022, primarily driven by the acquisition of PCSB Financial Corporation ("PCSB").

Total investment securities at December 31, 2023 increased $36.2 million to $916.6 million from $880.4 million at September 30, 2023, and increased $259.8 million from $656.8 million at December 31, 2022. Total cash and cash equivalents at December 31, 2023 decreased $28.0 million to $133.0 million from $161.0 million at September 30, 2023, and decreased $249.9 million from $383.0 million at December 31, 2022. As of December 31, 2023, total investment securities and total cash and cash equivalents represented 9.2 percent of total assets as compared to 9.3 percent and 11.3 percent as of September 30, 2023 and December 31, 2022, respectively.

Total deposits at December 31, 2023 decreased $17.9 million, $13.2 million of which was related to brokered deposits, to $8.5 billion from $8.6 billion at September 30, 2023 and increased $2.0 billion from $6.5 billion at December 31, 2022, primarily driven by the completion of the PCSB acquisition.

Total borrowed funds at December 31, 2023 increased $241.6 million to $1.4 billion from $1.1 billion at September 30, 2023, driven by the need to fund loan growth during the quarter, and decreased $56.0 million from $1.4 billion at December 31, 2022.

The ratio of stockholders' equity to total assets was 10.53 percent at December 31, 2023, as compared to 10.36 percent at September 30, 2023, and 10.80 percent at December 31, 2022. The ratio of tangible stockholders' equity to tangible assets (non-GAAP) was 8.39 percent at December 31, 2023, as compared to 8.16 percent at September 30, 2023, and 9.20 percent at December 31, 2022. Tangible book value per common share (non-GAAP) increased $0.48 from $10.02 at September 30, 2023 to $10.50 at December 31, 2023, compared to $10.80 at December 31, 2022.

NET INTEREST INCOME

Net interest income decreased $0.5 million to $83.6 million during the fourth quarter of 2023 from $84.1 million for the quarter ended September 30, 2023. The net interest margin decreased 3 basis points to 3.15 percent for the three months ended December 31, 2023 from 3.18 percent for the three months ended September 30, 2023, primarily driven by higher funding costs.

NON-INTEREST INCOME

Total non-interest income for the quarter ended December 31, 2023 increased $2.5 million to $8.0 million from $5.5 million for the quarter ended September 30, 2023. The increase was primarily driven by an increase of $2.0 million in other non-interest income, due to the mark to market on interest rate swaps, an increase of $0.4 million in loan level derivative income, net, and an increase of $0.2 million in gain on sales of loans and leases.

PROVISION FOR CREDIT LOSSES

The Company recorded a provision for credit losses of $3.8 million for the quarter ended December 31, 2023, compared to $3.0 million for the quarter ended September 30, 2023. The provision was driven by net charge-offs, an increase in specific reserves and strong loan growth, partially offset by a reduction in the unfunded reserve.

Total net charge-offs for the fourth quarter of 2023 were $7.1 million compared to $11.0 million in the third quarter of 2023, of which $4.5 million was previously reserved for. The $7.1 million in net charge-offs were driven by three individual charge-offs including a $3.3 million commercial loan, $1.0 million equipment financing loan, and a $0.9 million commercial real estate loan. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis decreased to 30 basis points for the fourth quarter of 2023 from 47 basis points for the third quarter of 2023.

The allowance for loan and lease losses represented 1.22 percent of total loans and leases at December 31, 2023, compared to 1.27 percent at September 30, 2023, and 1.29 percent at December 31, 2022. The decrease in ratio is driven by a change in loan mix consisting of a reduction in total construction commitments.

ASSET QUALITY

The ratio of total nonperforming loans and leases to total loans and leases was 0.45 percent at December 31, 2023 as compared to 0.55 percent at September 30, 2023. Total nonaccrual loans and leases decreased $7.6 million to $43.6 million at December 31, 2023 from $51.2 million at September 30, 2023. The ratio of nonperforming assets to total assets was 0.40 percent at December 31, 2023 as compared to 0.46 percent at September 30, 2023. Total nonperforming assets decreased $6.2 million to $45.3 million at December 31, 2023 from $51.5 million at September 30, 2023.

NON-INTEREST EXPENSE

Non-interest expense for the quarter ended December 31, 2023 increased $1.6 million to $59.2 million from $57.7 million for the quarter ended September 30, 2023. The increase was primarily driven by increases of $1.9 million in compensation and employee benefits and $0.5 million in equipment and data processing, partially offset by decreases of $0.9 million in professional services expense, $0.4 million in advertising and marketing expense, and $0.3 million in FDIC insurance expense.

PROVISION FOR INCOME TAXES

The effective tax rate was 19.9 percent and 20.1 percent for the three and twelve months ended December 31, 2023 compared to 21.4 percent for the three months ended September 30, 2023 and 17.8 percent and 21.6 percent for the three and twelve months ended December 31, 2022.

RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

The annualized return on average assets was 0.81 percent during the fourth quarter of 2023 and flat compared to the third quarter of 2023; and was 0.67 percent for the year ended December 31, 2023, compared to 1.27 percent for the year ended December 31, 2022.

The annualized return on average tangible stockholders' equity increased to 10.12 percent during the fourth quarter of 2023 compared to 10.09 percent for the third quarter of 2023; and was 8.36 percent for the year ended December 31, 2023 compared to 13.35 percent for the year ended December 31, 2022.

DIVIDEND DECLARED

The Company's Board of Directors approved a dividend of $0.135 per share for the quarter ended December 31, 2023. The dividend will be paid on February 23, 2024 to stockholders of record on February 9, 2024.

CONFERENCE CALL

The Company will conduct a conference call/webcast at 1:30 PM Eastern Time on Thursday, January 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/124233277. 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 714087). 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: 419492.

ABOUT BROOKLINE BANCORP, INC.

Brookline Bancorp, Inc., a bank holding company with approximately $11.4 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, 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, 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
	[email protected]

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, 2023			September 30, 2023			June 30, 2023			March 31, 2023			December 31, 2022			December 31, 2023			December 31, 2022
	(Dollars In Thousands Except per Share Data)
Earnings Data:
Net interest income	$	83,555		$	84,070		$	86,037		$	86,049		$	80,030		$	339,711		$	299,771
Provision for credit losses on loans		3,851			2,947			5,726			25,344			5,671			37,868			8,525
Provision (credit) for credit losses on investments		(76	)		84			133			198			54			339			102
Non-interest income		8,027			5,508			5,462			12,937			9,056			31,934			28,347
Non-interest expense		59,244			57,679			57,825			64,776			47,225			239,524			179,542
Income before provision for income taxes		28,563			28,868			27,815			8,668			36,136			93,914			139,949
Net income		22,888			22,701			21,850			7,560			29,695			74,999			109,744
Performance Ratios:
Net interest margin (1)		3.15	%		3.18	%		3.26	%		3.36	%		3.81	%		3.24	%		3.67	%
Interest-rate spread (1)		2.39	%		2.45	%		2.51	%		2.66	%		3.35	%		2.50	%		3.40	%
Return on average assets (annualized)		0.81	%		0.81	%		0.78	%		0.27	%		1.34	%		0.67	%		1.27	%
Return on average tangible assets (annualized) (non-GAAP)		0.83	%		0.83	%		0.79	%		0.28	%		1.37	%		0.69	%		1.30	%
Return on average stockholders' equity (annualized)		7.82	%		7.78	%		7.44	%		2.61	%		12.09	%		6.42	%		11.15	%
Return on average tangible stockholders' equity (annualized) (non-GAAP)		10.12	%		10.09	%		9.67	%		3.43	%		14.48	%		8.36	%		13.35	%
Efficiency ratio (2)		64.69	%		64.39	%		63.20	%		65.44	%		53.01	%		64.45	%		54.72	%
Per Common Share Data:
Net income — Basic	$	0.26		$	0.26		$	0.25		$	0.09		$	0.39		$	0.85		$	1.42
Net income — Diluted		0.26			0.26			0.25			0.09			0.39			0.85			1.42
Cash dividends declared		0.135			0.135			0.135			0.135			0.135			0.540			0.530
Book value per share (end of period)		13.48			13.03			13.11			13.14			12.91			13.48			12.91
Tangible book value per common share (end of period) (non-GAAP)		10.50			10.02			10.07			10.08			10.80			10.50			10.80
Stock price (end of period)		10.91			9.11			8.74			10.50			14.15			10.91			14.15
Balance Sheet:
Total assets	$	11,382,256		$	11,180,555		$	11,206,078		$	11,522,485		$	9,185,836		$	11,382,256		$	9,185,836
Total loans and leases		9,641,589			9,380,782			9,340,799			9,246,965			7,644,388			9,641,589			7,644,388
Total deposits		8,548,125			8,566,013			8,517,013			8,456,462			6,522,146			8,548,125			6,522,146
Total stockholders' equity		1,198,644			1,157,871			1,162,308			1,165,066			992,125			1,198,644			992,125
Asset Quality:
Nonperforming assets	$	45,324		$	51,540		$	46,925		$	28,962		$	15,302		$	45,324		$	15,302
Nonperforming assets as a percentage of total assets		0.40	%		0.46	%		0.42	%		0.25	%		0.17	%		0.40	%		0.17	%
Allowance for loan and lease losses	$	117,522		$	119,081		$	125,817		$	120,865		$	98,482		$	117,522		$	98,482
Allowance for loan and lease losses as a percentage of total loans and leases		1.22	%		1.27	%		1.35	%		1.31	%		1.29	%		1.22	%		1.29	%
Net loan and lease charge-offs	$	7,141		$	10,974		$	1,097		$	451		$	310		$	19,663		$	3,320
Net loan and lease charge-offs as a percentage of average loans and leases (annualized)		0.30	%		0.47	%		0.05	%		0.02	%		0.02	%		0.21	%		0.05	%
Capital Ratios:
Stockholders' equity to total assets		10.53	%		10.36	%		10.37	%		10.11	%		10.80	%		10.53	%		10.80	%
Tangible stockholders' equity to tangible assets (non-GAAP)		8.39	%		8.16	%		8.16	%		7.94	%		9.20	%		8.39	%		9.20	%
(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, 2023		September 30, 2023		June 30, 2023		March 31, 2023		December 31, 2022
ASSETS	(In Thousands Except Share Data)
Cash and due from banks	$	34,514	$	33,506	$	44,323	$	30,782	$	191,767
Short-term investments		98,513		127,495		180,109		455,538		191,192
Total cash and cash equivalents		133,027		161,001		224,432		486,320		382,959
Investment securities available-for-sale		916,601		880,412		910,210		1,067,032		656,766
Total investment securities		916,601		880,412		910,210		1,067,032		656,766
Allowance for investment security losses		(441)		(517)		(433)		(301)		(102)
Net investment securities		916,160		879,895		909,777		1,066,731		656,664
Loans and leases:
Commercial real estate loans		5,764,529		5,669,768		5,670,771		5,610,414		4,404,148
Commercial loans and leases		2,399,668		2,241,375		2,193,027		2,147,149		2,016,499
Consumer loans		1,477,392		1,469,639		1,477,001		1,489,402		1,223,741
Total loans and leases		9,641,589		9,380,782		9,340,799		9,246,965		7,644,388
Allowance for loan and lease losses		(117,522)		(119,081)		(125,817)		(120,865)		(98,482)
Net loans and leases		9,524,067		9,261,701		9,214,982		9,126,100		7,545,906
Restricted equity securities		77,595		65,460		71,421		86,230		71,307
Premises and equipment, net of accumulated depreciation		89,853		90,476		90,685		87,799		71,391
Right-of-use asset operating leases		30,863		31,619		31,774		30,067		19,484
Deferred tax asset		56,952		74,491		77,704		75,028		52,237
Goodwill		241,222		241,222		241,222		241,222		160,427
Identified intangible assets, net of accumulated amortization		24,207		26,172		28,126		30,080		1,781
Other real estate owned and repossessed assets		1,694		299		602		508		408
Other assets		286,616		348,219		315,353		292,400		223,272
Total assets	$	11,382,256	$	11,180,555	$	11,206,078	$	11,522,485	$	9,185,836
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand checking accounts	$	1,678,406	$	1,745,137	$	1,843,516	$	1,899,370	$	1,802,518
NOW accounts		661,863		647,476		699,119		757,411		544,118
Savings accounts		1,669,018		1,625,804		1,464,054		1,268,375		762,271
Money market accounts		2,082,810		2,161,359		2,166,570		2,185,971		2,174,952
Certificate of deposit accounts		1,574,855		1,491,844		1,410,905		1,362,970		928,143
Brokered deposit accounts		881,173		894,393		932,849		982,365		310,144
Total deposits		8,548,125		8,566,013		8,517,013		8,456,462		6,522,146
Borrowed funds:
Advances from the FHLBB		1,223,226		899,304		1,043,381		1,458,457		1,237,823
Subordinated debentures and notes		84,188		84,152		84,116		84,080		84,044
Other borrowed funds		69,256		151,612		98,773		87,565		110,785
Total borrowed funds		1,376,670		1,135,068		1,226,270		1,630,102		1,432,652
Operating lease liabilities		31,998		32,807		33,021		31,373		19,484
Mortgagors' escrow accounts		17,239		12,578		17,207		17,080		5,607
Reserve for unfunded credits		19,767		21,497		22,789		23,112		20,602
Accrued expenses and other liabilities		189,813		254,721		227,470		199,290		193,220
Total liabilities		10,183,612		10,022,684		10,043,770		10,357,419		8,193,711
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 85,177,172 shares issued, respectively		970		970		970		970		852
Additional paid-in capital		902,659		901,376		905,084		904,174		736,074
Retained earnings		438,722		427,937		417,328		407,528		412,019
Accumulated other comprehensive income		(52,798)		(81,541)		(66,156)		(52,688)		(61,947)
Treasury stock, at cost;
7,354,399 shares, 7,350,981 shares, 7,734,891 shares, 7,734,891 shares, and 7,731,445 shares, respectively		(90,909)		(90,871)		(94,918)		(94,918)		(94,873)
Total stockholders' equity		1,198,644		1,157,871		1,162,308		1,165,066		992,125
Total liabilities and stockholders' equity	$	11,382,256	$	11,180,555	$	11,206,078	$	11,522,485	$	9,185,836

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
	Three Months Ended
	December 31, 2023			September 30, 2023		June 30, 2023		March 31, 2023		December 31, 2022
	(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases	$	142,948		$	136,561	$	132,299	$	121,931	$	98,386
Debt securities		6,945			6,799		8,034		7,870		3,497
Restricted equity securities		1,333			1,310		1,673		1,255		766
Short-term investments		1,093			2,390		3,351		1,495		754
Total interest and dividend income		152,319			147,060		145,357		132,551		103,403
Interest expense:
Deposits		54,034			49,116		43,147		29,368		14,185
Borrowed funds		14,730			13,874		16,173		17,134		9,188
Total interest expense		68,764			62,990		59,320		46,502		23,373
Net interest income		83,555			84,070		86,037		86,049		80,030
Provision for credit losses on loans		3,851			2,947		5,726		25,344		5,671
(Credit) provision for credit losses on investments		(76	)		84		133		198		54
Net interest income after provision for credit losses		79,780			81,039		80,178		60,507		74,305
Non-interest income:
Deposit fees		3,064			3,024		2,866		2,657		2,916
Loan fees		515			639		491		391		446
Loan level derivative income, net		778			376		363		2,373		670
Gain on investment securities, net		—			—		3		1,701		321
Gain on sales of loans and leases		410			225		308		1,638		2,612
Other		3,260			1,244		1,431		4,177		2,091
Total non-interest income		8,027			5,508		5,462		12,937		9,056
Non-interest expense:
Compensation and employee benefits		35,401			33,491		33,438		36,565		29,525
Occupancy		5,127			4,983		4,870		5,223		4,005
Equipment and data processing		7,245			6,766		6,531		6,462		5,758
Professional services		1,442			2,368		1,986		1,430		1,546
FDIC insurance		1,839			2,152		2,609		1,244		1,001
Advertising and marketing		758			1,174		1,382		1,410		1,052
Amortization of identified intangible assets		1,965			1,955		1,954		1,966		120
Merger and acquisition expense		—			—		1,002		6,409		641
Other		5,467			4,790		4,053		4,067		3,577
Total non-interest expense		59,244			57,679		57,825		64,776		47,225
Income before provision for income taxes		28,563			28,868		27,815		8,668		36,136
Provision for income taxes		5,675			6,167		5,965		1,108		6,441
Net income	$	22,888		$	22,701	$	21,850	$	7,560	$	29,695
Earnings per common share:
Basic	$	0.26		$	0.26	$	0.25	$	0.09	$	0.39
Diluted	$	0.26		$	0.26	$	0.25	$	0.09	$	0.39
Weighted average common shares outstanding during the period:
Basic		88,867,159			88,795,270		88,665,135		86,563,641		76,841,655
Diluted		89,035,505			88,971,210		88,926,543		86,837,806		77,065,076
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,
		2023		2022
	(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases	$	533,739	$	328,769
Debt securities		29,648		13,079
Restricted equity securities		5,571		1,898
Short-term investments		8,329		1,440
Total interest and dividend income		577,287		345,186
Interest expense:
Deposits		175,665		29,592
Borrowed funds		61,911		15,823
Total interest expense		237,576		45,415
Net interest income		339,711		299,771
Provision for credit losses on loans		37,868		8,525
Provision for credit losses on investments		339		102
Net interest income after provision for credit losses		301,504		291,144
Non-interest income:
Deposit fees		11,611		10,919
Loan fees		2,036		2,208
Loan level derivative income, net		3,890		4,246
Gain on investment securities, net		1,704		321
Gain on sales of loans and leases		2,581		4,136
Other		10,112		6,517
Total non-interest income		31,934		28,347
Non-interest expense:
Compensation and employee benefits		138,895		113,487
Occupancy		20,203		16,002
Equipment and data processing		27,004		20,833
Professional services		7,226		5,060
FDIC insurance		7,844		3,177
Advertising and marketing		4,724		4,980
Amortization of identified intangible assets		7,840		494
Merger and acquisition expense		7,411		2,249
Other		18,377		13,260
Total non-interest expense		239,524		179,542
Income before provision for income taxes		93,914		139,949
Provision for income taxes		18,915		30,205
Net income	$	74,999	$	109,744
Earnings per common share:
Basic	$	0.85	$	1.42
Diluted	$	0.85	$	1.42
Weighted average common shares outstanding during the period:
Basic		88,230,681		77,079,278
Diluted		88,450,646		77,351,834
Dividends paid per common share	$	0.540	$	0.520

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Asset Quality Analysis (Unaudited)
	At and for the Three Months Ended
	December 31, 2023			September 30, 2023			June 30, 2023			March 31, 2023			December 31, 2022
	(Dollars in Thousands)
NONPERFORMING ASSETS:
Loans and leases accounted for on a nonaccrual basis:
Commercial real estate mortgage	$	19,608		$	23,263		$	8,737		$	4,589		$	607
Multi-family mortgage		—			1,318			—			—			—
Construction		—			2,316			3,828			3,883			707
Total commercial real estate loans		19,608			26,897			12,565			8,472			1,314
Commercial		3,886			5,406			16,023			5,495			464
Equipment financing		14,984			13,974			12,809			9,908			9,653
Condominium association		—			—			—			51			58
Total commercial loans and leases		18,870			19,380			28,832			15,454			10,175
Residential mortgage		4,292			4,249			4,343			3,449			2,680
Home equity		860			713			583			1,079			723
Other consumer		—			2			—			—			2
Total consumer loans		5,152			4,964			4,926			4,528			3,405
Total nonaccrual loans and leases		43,630			51,241			46,323			28,454			14,894
Other real estate owned		780			—			—			—			—
Other repossessed assets		914			299			602			508			408
Total nonperforming assets	$	45,324		$	51,540		$	46,925		$	28,962		$	15,302
Loans and leases past due greater than 90 days and still accruing	$	228		$	1,175		$	490		$	726		$	33
Nonperforming loans and leases as a percentage of total loans and leases		0.45	%		0.55	%		0.50	%		0.31	%		0.19	%
Nonperforming assets as a percentage of total assets		0.40	%		0.46	%		0.42	%		0.25	%		0.17	%
PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:
Allowance for loan and lease losses at beginning of period	$	119,081		$	125,817		$	120,865		$	98,482		$	94,169
Charge-offs		(7,722	)		(10,978	)		(1,690	)		(845	)		(658	)
Recoveries		581			4			593			394			348
Net charge-offs		(7,141	)		(10,974	)		(1,097	)		(451	)		(310	)
Provision for loan and lease losses excluding unfunded commitments *		5,582			4,238			6,049			22,834			4,623
Allowance for loan and lease losses at end of period	$	117,522		$	119,081		$	125,817		$	120,865		$	98,482
Allowance for loan and lease losses as a percentage of total loans and leases		1.22	%		1.27	%		1.35	%		1.31	%		1.29	%
NET CHARGE-OFFS:
Commercial real estate loans	$	1,087		$	(3	)	$	(6	)	$	(6	)	$	(6	)
Commercial loans and leases		6,061			10,958			1,108			457			320
Consumer loans		(7	)		19			(5	)		—			(4	)
Total net charge-offs	$	7,141		$	10,974		$	1,097		$	451		$	310
Net loan and lease charge-offs as a percentage of average loans and leases (annualized)		0.30	%		0.47	%		0.05	%		0.02	%		0.02	%
*Provision for loan and lease losses does not include (credit) provision of $(1.7 million), $(1.3 million), $(0.3) million, $2.5 million, and $1.0 million for credit losses on unfunded commitments during the three months ended December 31, 2023, September 30, 2023, June 30, 2023, March 31, 2023, and December 31, 2022, respectively.

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Average Yields / Costs (Unaudited)
	Three Months Ended
	December 31, 2023						September 30, 2023						December 31, 2022
	Average Balance		Interest (1)		Average Yield/ Cost		Average Balance		Interest (1)		Average Yield/ Cost		Average Balance		Interest (1)		Average Yield/ Cost
	(Dollars in Thousands)
Assets:
Interest-earning assets:
Investments:
Debt securities (2)	$	876,350	$	6,986	3.19	%	$	887,612	$	6,840	3.08	%	$	665,969	$	3,497	2.10	%
Restricted equity securities (2)		67,567		1,334	7.90	%		67,824		1,310	7.73	%		52,093		766	5.88	%
Short-term investments		85,790		1,093	5.09	%		172,483		2,390	5.54	%		60,385		754	5.00	%
Total investments		1,029,707		9,413	3.66	%		1,127,919		10,540	3.74	%		778,447		5,017	2.58	%
Loans and Leases:
Commercial real estate loans (3)		5,727,930		81,653	5.58	%		5,667,373		78,750	5.44	%		4,341,929		53,088	4.78	%
Commercial loans (3)		969,603		16,296	6.58	%		939,492		15,295	6.38	%		797,312		10,541	5.18	%
Equipment financing (3)		1,347,589		25,211	7.48	%		1,280,033		23,331	7.29	%		1,200,911		20,816	6.93	%
Consumer loans (3)		1,475,580		19,888	5.37	%		1,471,985		19,237	5.21	%		1,225,056		13,991	4.55	%
Total loans and leases		9,520,702		143,048	6.01	%		9,358,883		136,613	5.84	%		7,565,208		98,436	5.20	%
Total interest-earning assets		10,550,409		152,461	5.78	%		10,486,802		147,153	5.61	%		8,343,655		103,453	4.96	%
Non-interest-earning assets		721,532						693,833						513,976
Total assets	$	11,271,941					$	11,180,635					$	8,857,631
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts	$	657,134		1,146	0.69	%	$	681,929		1,159	0.67	%	$	583,499		257	0.18	%
Savings accounts		1,658,144		10,684	2.56	%		1,557,911		8,859	2.26	%		787,021		1,155	0.58	%
Money market accounts		2,140,225		16,239	3.01	%		2,177,528		15,785	2.88	%		2,282,217		7,711	1.34	%
Certificates of deposit		1,530,772		14,517	3.76	%		1,444,269		12,128	3.33	%		922,250		2,865	1.23	%
Brokered deposit accounts		880,604		11,448	5.16	%		882,351		11,185	5.03	%		218,188		2,197	3.99	%
Total interest-bearing deposits		6,866,879		54,034	3.12	%		6,743,988		49,116	2.89	%		4,793,175		14,185	1.17	%
Borrowings:
Advances from the FHLBB		965,846		11,943	4.84	%		954,989		11,706	4.80	%		736,652		6,979	3.71	%
Subordinated debentures and notes		84,170		1,381	6.56	%		84,134		1,378	6.55	%		84,025		1,332	6.34	%
Other borrowed funds		136,566		1,406	4.09	%		117,531		790	2.67	%		148,195		877	2.35	%
Total borrowings		1,186,582		14,730	4.86	%		1,156,654		13,874	4.69	%		968,872		9,188	3.71	%
Total interest-bearing liabilities		8,053,461		68,764	3.39	%		7,900,642		62,990	3.16	%		5,762,047		23,373	1.61	%
Non-interest-bearing liabilities:
Demand checking accounts		1,723,849						1,794,225						1,843,780
Other non-interest-bearing liabilities		323,855						318,041						269,498
Total liabilities		10,101,165						10,012,908						7,875,325
Stockholders' equity		1,170,776						1,167,727						982,306
Total liabilities and equity	$	11,271,941					$	11,180,635					$	8,857,631
Net interest income (tax-equivalent basis) /Interest-rate spread (4)				83,697	2.39	%				84,163	2.45	%				80,080	3.35	%
Less adjustment of tax-exempt income				142						93						50
Net interest income			$	83,555					$	84,070					$	80,030
Net interest margin (5)					3.15	%					3.18	%					3.81	%
(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, 2023						December 31, 2022
	Average Balance		Interest (1)		Average Yield/ Cost		Average Balance		Interest (1)		Average Yield/ Cost
	(Dollars in Thousands)
Assets:
Interest-earning assets:
Investments:
Debt securities (2)	$	947,782	$	29,891	3.15	%	$	706,580	$	13,079	1.85	%
Restricted equity securities (2)		72,264		5,572	7.71	%		36,813		1,898	5.15	%
Short-term investments		158,718		8,329	5.25	%		104,288		1,440	1.38	%
Total investments		1,178,764		43,792	3.72	%		847,681		16,417	1.94	%
Loans and Leases:
Commercial real estate loans (3)		5,654,385		307,652	5.37	%		4,238,960		172,811	4.02	%
Commercial loans (3)		929,077		59,110	6.28	%		744,972		34,105	4.52	%
Equipment financing (3)		1,277,224		92,112	7.21	%		1,148,673		75,767	6.60	%
Consumer loans (3)		1,470,677		75,098	5.10	%		1,199,804		46,295	3.86	%
Total loans and leases		9,331,363		533,972	5.72	%		7,332,409		328,978	4.49	%
Total interest-earning assets		10,510,127		577,764	5.50	%		8,180,090		345,395	4.22	%
Non-interest-earning assets		704,244						443,313
Total assets	$	11,214,371					$	8,623,403
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts	$	720,572		4,275	0.59	%	$	598,267		853	0.14	%
Savings accounts		1,439,293		27,974	1.94	%		882,881		2,228	0.25	%
Money market accounts		2,205,430		58,153	2.64	%		2,387,670		15,392	0.64	%
Certificates of deposit		1,428,727		44,122	3.09	%		998,580		8,210	0.82	%
Brokered deposit accounts		819,419		41,141	5.02	%		146,038		2,909	1.99	%
Total interest-bearing deposits		6,613,441		175,665	2.66	%		5,013,436		29,592	0.59	%
Borrowings:
Advances from the FHLBB		1,092,996		52,467	4.73	%		340,569		9,355	2.71	%
Subordinated debentures and notes		84,116		5,476	6.51	%		83,971		5,133	6.11	%
Other borrowed funds		124,793		3,968	3.18	%		118,383		1,335	1.13	%
Total borrowings		1,301,905		61,911	4.69	%		542,923		15,823	2.87	%
Total interest-bearing liabilities		7,915,346		237,576	3.00	%		5,556,359		45,415	0.82	%
Non-interest-bearing liabilities:
Demand checking accounts		1,823,759						1,879,620
Other non-interest-bearing liabilities		307,160						203,187
Total liabilities		10,046,265						7,639,166
Stockholders' equity		1,168,106						984,237
Total liabilities and equity	$	11,214,371					$	8,623,403
Net interest income (tax-equivalent basis) /Interest-rate spread (4)				340,188	2.50	%				299,980	3.40	%
Less adjustment of tax-exempt income				477						209
Net interest income			$	339,711					$	299,771
Net interest margin (5)					3.24	%					3.67	%
(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 Ended December 31,						At and for the Twelve Months Ended December 31,
											2023			2022			2023			2022
Reconciliation Table - Non-GAAP Financial Information										(Dollars in Thousands Except Share Data)
Reported Pretax Income										$	28,563		$	36,136		$	93,914		$	139,949
Less:
Security gains											—			321			1,704			321
Add:
Day 1 PCSB CECL provision											—			—			16,744			—
Merger and acquisition expenses											—			641			7,411			2,249
Operating Pretax income										$	28,563		$	36,456		$	116,365		$	141,877
Effective tax rate											19.9	%		17.8	%		20.1	%		21.6	%
Provision for income tax											5,675			6,498			23,437			30,622
Operating earnings										$	22,888		$	29,958		$	92,928		$	111,255
Operating earnings per common share:
Basic										$	0.26		$	0.39		$	1.05		$	1.44
Diluted										$	0.26		$	0.39		$	1.05		$	1.44
Weighted average common shares outstanding during the period:
Basic											88,867,159			76,841,655			88,230,681			77,079,278
Diluted											89,035,505			77,065,076			88,450,646			77,351,834
Return on average assets *											0.81	%		1.34	%		0.67	%		1.27	%
Less:
Security gains (after-tax) *											—	%		0.01	%		0.01	%		—	%
Add:
Day 1 PCSB CECL provision (after-tax) *											—	%		—	%		0.12	%		—	%
Merger and acquisition expenses (after-tax) *											—	%		0.02	%		0.05	%		0.02	%
Operating return on average assets *											0.81	%		1.35	%		0.83	%		1.29	%
Return on average tangible assets *											0.83	%		1.37	%		0.69	%		1.30	%
Less:
Security gains (after-tax) *											—	%		0.01	%		0.01	%		—	%
Add:
Day 1 PCSB CECL provision (after-tax) *											—	%		—	%		0.12	%		—	%
Merger and acquisition expenses (after-tax) *											—	%		0.02	%		0.05	%		0.02	%
Operating return on average tangible assets *											0.83	%		1.38	%		0.85	%		1.32	%
Return on average stockholders' equity *											7.82	%		12.09	%		6.42	%		11.15	%
Less:
Security gains (after-tax) *											—	%		0.11	%		0.12	%		0.03	%
Add:
Day 1 PCSB CECL provision (after-tax) *											—	%		—	%		1.14	%		—	%
Merger and acquisition expenses (after-tax) *											—	%		0.21	%		0.51	%		0.18	%
Operating return on average stockholders' equity *											7.82	%		12.19	%		7.95	%		11.30	%
Return on average tangible stockholders' equity *											10.12	%		14.48	%		8.36	%		13.35	%
Less:
Security gains (after-tax) *											—	%		0.13	%		0.15	%		0.03	%
Add:
Day 1 PCSB CECL provision (after-tax) *											—	%		—	%		1.49	%		—	%
Merger and acquisition expenses (after-tax) *											—	%		0.26	%		0.66	%		0.21	%
Operating return on average tangible stockholders' equity *											10.12	%		14.61	%		10.36	%		13.53	%
* 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 Twelve Months Ended
	December 31, 2023			September 30, 2023			June 30, 2023			March 31, 2023			December 31, 2022			December 31, 2023			December 31, 2022
	(Dollars in Thousands)
Net income, as reported	$	22,888		$	22,701		$	21,850		$	7,560		$	29,695		$	74,999		$	109,744
Average total assets	$	11,271,941		$	11,180,635		$	11,272,672		$	11,131,087		$	8,857,631		$	11,214,371		$	8,623,403
Less: Average goodwill and average identified intangible assets, net		266,225			268,199			270,147			278,135			162,266			270,637			162,447
Average tangible assets	$	11,005,716		$	10,912,436		$	11,002,525		$	10,852,952		$	8,695,365		$	10,943,734		$	8,460,956
Return on average tangible assets (annualized)		0.83	%		0.83	%		0.79	%		0.28	%		1.37	%		0.69	%		1.30	%
Average total stockholders' equity	$	1,170,776		$	1,167,727		$	1,174,167		$	1,159,635		$	982,306		$	1,168,106		$	984,237
Less: Average goodwill and average identified intangible assets, net		266,225			268,199			270,147			278,135			162,266			270,637			162,447
Average tangible stockholders' equity	$	904,551		$	899,528		$	904,020		$	881,500		$	820,040		$	897,469		$	821,790
Return on average tangible stockholders' equity (annualized)		10.12	%		10.09	%		9.67	%		3.43	%		14.48	%		8.36	%		13.35	%
Total stockholders' equity	$	1,198,644		$	1,157,871		$	1,162,308		$	1,165,066		$	992,125		$	1,198,644		$	992,125
Less:
Goodwill		241,222			241,222			241,222			241,222			160,427			241,222			160,427
Identified intangible assets, net		24,207			26,172			28,126			30,080			1,781			24,207			1,781
Tangible stockholders' equity	$	933,215		$	890,477		$	892,960		$	893,764		$	829,917		$	933,215		$	829,917
Total assets	$	11,382,256		$	11,180,555		$	11,206,078		$	11,522,485		$	9,185,836		$	11,382,256		$	9,185,836
Less:
Goodwill		241,222			241,222			241,222			241,222			160,427			241,222			160,427
Identified intangible assets, net		24,207			26,172			28,126			30,080			1,781			24,207			1,781
Tangible assets	$	11,116,827		$	10,913,161		$	10,936,730		$	11,251,183		$	9,023,628		$	11,116,827		$	9,023,628
Tangible stockholders' equity to tangible assets		8.39	%		8.16	%		8.16	%		7.94	%		9.20	%		8.39	%		9.20	%
Tangible stockholders' equity	$	933,215		$	890,477		$	892,960		$	893,764		$	829,917		$	933,215		$	829,917
Number of common shares issued		96,998,075			96,998,075			96,998,075			96,998,075			85,177,172			96,998,075			85,177,172
Less:
Treasury shares		7,354,399			7,350,981			7,734,891			7,734,891			7,731,445			7,354,399			7,731,445
Unvested restricted shares		749,099			780,859			598,049			598,049			601,495			749,099			601,495
Number of common shares outstanding		88,894,577			88,866,235			88,665,135			88,665,135			76,844,232			88,894,577			76,844,232
Tangible book value per common share	$	10.50		$	10.02		$	10.07		$	10.08		$	10.80		$	10.50		$	10.80

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