Brookline Bancorp Announces Second Quarter Results

Rhea-AI Summary

Brookline Bancorp (NASDAQ: BRKL) reported strong Q2 2025 results with net income of $22.0 million, or $0.25 per share, up from $19.1 million in Q1 2025 and $16.4 million in Q2 2024. The company's performance was marked by a net interest margin expansion to 3.32%, despite intentional contraction in commercial real estate portfolio.

Total assets reached $11.6 billion, with deposits increasing by $49.8 million to $9.0 billion. The company maintained strong asset quality with nonperforming loans ratio at 0.65%. The Board declared a quarterly dividend of $0.135 per share, payable on August 22, 2025.

Notable metrics include improved return on average assets to 0.77% and return on average stockholders' equity to 7.04%. The company recorded a provision for credit losses of $7.0 million, reflecting continued stress in the Boston office sector.

Positive

• Net income increased 15.2% QoQ to $22.0 million
• Net interest margin expanded by 10 basis points to 3.32%
• Customer deposits increased by $58.3 million QoQ
• Tangible book value per share increased to $11.20 from $11.03 in Q1

Negative

• Total loans and leases decreased by $60.3 million QoQ
• Provision for credit losses increased to $7.0 million from $6.0 million QoQ
• Stress reported in Boston office sector affecting credit quality
• Net charge-offs of $5.1 million including $3.5 million from two commercial real estate loans

Insights

Banking Financial Analyst

Brookline Bancorp shows solid Q2 performance with improved net income, expanding margins despite deliberate CRE reduction, and strengthening capital position.

Brookline Bancorp delivered $22.0 million in Q2 2025 net income ($0.25 EPS), representing a 15.2% increase from Q1 2025 ($19.1 million) and a substantial 34.1% improvement year-over-year from Q2 2024 ($16.4 million).

The bank's net interest margin expanded 10 basis points to 3.32%, driving a $2.9 million increase in net interest income to $88.7 million. This margin improvement occurred despite an intentional contraction in the commercial real estate portfolio, highlighting management's strategic shift toward C&I lending in a challenging CRE environment.

Balance sheet management shows prudent liquidity positioning, with cash and securities representing 11.9% of total assets, up from 10.8% in the previous quarter. The $149.2 million increase in cash positions provides enhanced flexibility amid ongoing market uncertainties.

Asset quality metrics reveal continued challenges in the Boston office sector. The provision for credit losses increased to $7.0 million from $6.0 million in Q1, though net charge-offs decreased to $5.1 million (21 basis points annualized) from $7.6 million (31 basis points). The allowance for loan losses increased to 1.32% of total loans, providing additional cushion against potential commercial real estate deterioration.

Deposit growth remains positive with $58.3 million in new customer deposits, reducing reliance on more expensive brokered funding. The bank's capital position continued strengthening, with tangible equity to tangible assets increasing to 8.82% from 8.73% in Q1 and tangible book value per share rising to $11.20.

The return on average assets improved to 0.77% from 0.66%, while return on average tangible equity reached 8.85%, up from 7.82% in Q1. The declared quarterly dividend of $0.135 per share remains unchanged, reflecting management's balanced approach to shareholder returns while maintaining capital strength during the pending merger with Berkshire Hills Bancorp.

Net Income of $22.0 million, EPS of $0.25

Quarterly Dividend of $0.135

BOSTON, July 23, 2025 (GLOBE NEWSWIRE) -- Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced net income of $22.0 million, or $0.25 per basic and diluted share, for the second quarter of 2025, compared to net income of $19.1 million, or $0.21 per basic and diluted share, for the first quarter of 2025, and $16.4 million, or $0.18 per basic and diluted share, for the second quarter of 2024. The Company reported operating earnings after tax (non-GAAP) of $22.4 million, or $0.25 per basic and diluted share, for the second quarter of 2025, compared to operating earnings after tax (non-GAAP) of $20.0 million, or $0.22 per basic and diluted share, for the first quarter of 2025, and $17.0 million, or $0.19 per basic and diluted share, for the second quarter of 2024.

Commenting on the second quarter’s performance, Mr. Perrault stated, “We are pleased to report solid earnings for the second quarter of the year led by growth in our C&I portfolio and deposits. Our dedicated team of bankers continue to provide exceptional service to the communities we serve. As a result of these efforts, our net interest margin expanded again this quarter despite intentional contraction in our commercial real estate portfolio."

BALANCE SHEET

Total assets at June 30, 2025 were $11.6 billion, representing an increase of $48.9 million from $11.5 billion at March 31, 2025, primarily driven by an increase in cash and cash equivalents partially offset by a reduction of loans and leases. Total assets decreased $66.5 million from June 30, 2024.

At June 30, 2025, total loans and leases were $9.6 billion, representing a decrease of $60.3 million from March 31, 2025, and a decrease of $138.8 million from June 30, 2024.

Total investment securities at June 30, 2025 decreased $15.7 million to $866.7 million from $882.4 million at March 31, 2025, and increased $10.3 million from $856.4 million at June 30, 2024. Total cash and cash equivalents at June 30, 2025 increased $149.2 million to $506.7 million from $357.5 million at March 31, 2025, and increased $163.6 million from $343.1 million at June 30, 2024. As of June 30, 2025, total investment securities and total cash and cash equivalents represented 11.9 percent of total assets, compared to 10.8 percent and 10.3 percent as of March 31, 2025 and June 30, 2024, respectively.

Total deposits at June 30, 2025 increased $49.8 million to $9.0 billion from March 31, 2025, primarily driven by an increase of $58.3 million in customer deposits partially offset by a decline of $8.5 million in brokered deposits. Total deposits increased $224.2 million from $8.7 billion at June 30, 2024, primarily driven by an increase of $391.2 million in customer deposits partially offset by a decline of $167.0 million in brokered deposits.

Total borrowed funds at June 30, 2025 remained flat at $1.2 billion compared to March 31, 2025, and decreased $274.4 million from $1.4 billion at June 30, 2024.

The ratio of stockholders’ equity to total assets was 10.84 percent at June 30, 2025, as compared to 10.77 percent at March 31, 2025, and 10.30 percent at June 30, 2024. The ratio of tangible stockholders’ equity to tangible assets (non-GAAP) was 8.82 percent at June 30, 2025, as compared to 8.73 percent at March 31, 2025, and 8.23 percent at June 30, 2024. Tangible book valuearticles/price-to-book-ratio-guide" title="Read: Price-to-Book Ratio (P/B): Complete Guide & Calculator" class="article-link" rel="noopener">book value per common share (non-GAAP) increased $0.17 from $11.03 at March 31, 2025 to $11.20 at June 30, 2025, and increased $0.67 from $10.53 at June 30, 2024.

NET INTEREST INCOME

Net interest income increased $2.9 million to $88.7 million during the second quarter of 2025 from $85.8 million for the quarter ended March 31, 2025. The net interest margin increased 10 basis points to 3.32 percent for the three months ended June 30, 2025 from 3.22 percent for the three months ended March 31, 2025, primarily driven by lower funding costs and higher yields on loans and leases.

NON-INTEREST INCOME

Total non-interest income for the quarter ended June 30, 2025 increased $0.3 million to $6.0 million from $5.7 million for the quarter ended March 31, 2025. The increase was primarily driven by 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 $7.0 million for the quarter ended June 30, 2025, compared to $6.0 million for the quarter ended March 31, 2025. The increase in provision was driven by a combination of continued stress in the Boston office sector as well as additional specific reserves on two large Eastern Funding credits.

Total net charge-offs for the second quarter of 2025 were $5.1 million, compared to $7.6 million in the first quarter of 2025. The $5.1 million in net charge-offs was driven by two commercial real estate loans that were sold during the quarter resulting in a combined $3.5 million in net charge-offs. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis decreased to 21 basis points for the second quarter of 2025 from 31 basis points for the first quarter of 2025.

The allowance for loan and lease losses represented 1.32 percent of total loans and leases at June 30, 2025, compared to 1.29 percent at March 31, 2025, and 1.25 percent at June 30, 2024.

ASSET QUALITY

The ratio of nonperforming loans and leases to total loans and leases was 0.65 percent at June 30, 2025, flat compared to March 31, 2025. Total nonaccrual loans and leases decreased $0.8 million to $62.3 million at June 30, 2025 from $63.1 million at March 31, 2025, driven by the sale of two commercial real estate loans. The ratio of nonperforming assets to total assets was 0.55 percent at June 30, 2025, a decrease from 0.56 percent at March 31, 2025. Total nonperforming assets decreased $0.4 million to $63.6 million at June 30, 2025 from $64.0 million at March 31, 2025.

NON-INTEREST EXPENSE

Non-interest expense for the quarter ended June 30, 2025 decreased $1.9 million to $58.1 million from $60.0 million for the quarter ended March 31, 2025. The decrease was primarily driven by decreases of $0.7 million in compensation and employee benefits expense, $0.5 million in merger and acquisition expense related to the previously announced proposed merger of the Company with Berkshire Hills Bancorp, Inc. ("Berkshire"), and $0.4 million in occupancy expense, partially offset by an increase of $0.5 million in advertising and marketing expense.

PROVISION FOR INCOME TAXES

The effective tax rate was 25.6 percent and 25.3 percent for the three and six months ended June 30, 2025 compared to 25.0 percent for the three months ended March 31, 2025 and 24.4 percent and 24.5 percent for the three and six months ended June 30, 2024.

RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

The annualized return on average assets increased to 0.77 percent during the second quarter 2025 from 0.66 percent for the first quarter of 2025.

The annualized return on average stockholders' equity increased to 7.04 percent during the second quarter of 2025 from 6.19 percent for the first quarter of 2025. The annualized return on average tangible stockholders’ equity (non-GAAP) increased to 8.85 percent for the second quarter of 2025 from 7.82 percent for the first quarter of 2025.

DIVIDEND DECLARED

The Company’s Board of Directors approved a dividend of $0.135 per share for the quarter ended June 30, 2025. The dividend will be paid on August 22, 2025 to stockholders of record on August 8, 2025.

CONFERENCE CALL

The Company will conduct a conference call/webcast at 1:30 PM Eastern Time on Thursday, July 24, 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/149362707. 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 673409). 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: 916742.

ABOUT BROOKLINE BANCORP, INC.

Brookline Bancorp, Inc., a bank holding company with $11.6 billion in assets and branch locations in Massachusetts, Rhode Island, and the Lower Hudson Valley of New York State, is headquartered in Boston, Massachusetts and operates as the holding company for Brookline Bank, Bank Rhode Island, and PCSB Bank (the "banks"). The Company provides commercial and retail banking services, cash management and investment services to customers throughout Central New England and the Lower Hudson Valley of New York State. More information about Brookline Bancorp, Inc. and its banks can be found at the following websites: www.brooklinebank.com, www.bankri.com and www.pcsb.com.

FORWARD-LOOKING STATEMENTS

Certain statements contained in this press release that are not historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We may also make forward-looking statements in other documents we file with the Securities and Exchange Commission ("SEC"), in our annual reports to shareholders, in press releases and other written materials, and in oral statements made by our officers, directors or employees. You can identify forward looking statements by the use of the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “assume,” “outlook,” “will,” “should,” and other expressions that predict or indicate future events and trends and which do not relate to historical matters, including statements regarding the Company’s business, credit quality, financial condition, liquidity and results of operations. Forward-looking statements may differ, possibly materially, from what is included in this press release due to factors and future developments that are uncertain and beyond the scope of the Company’s control. These include, but are not limited to, the 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 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 the impact of actual or threatened tariffs imposed by the U.S. and foreign governments, inflation, and concerns about liquidity) on a national basis or in the local markets in which the Company operates; ongoing 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 valuearticles/price-to-book-ratio-guide" title="Read: Price-to-Book Ratio (P/B): Complete Guide & Calculator" class="article-link" rel="noopener">book value per common share, tangible stockholders’ equity to tangible assets, return on average tangible assets (annualized) and return on average tangible stockholders' equity (annualized). These non-GAAP financial measures provide information for investors to effectively analyze financial trends of ongoing business activities, and to enhance comparability with peers across the financial services sector. A detailed reconciliation table of the Company's GAAP to the non-GAAP measures is attached.

INVESTOR RELATIONS:

Contact:	Carl M. Carlson
	Brookline Bancorp, Inc.
	Co-President and Chief Financial and Strategy Officer
	(617) 425-5331
	carl.carlson@brkl.com

 

BROOKLINE BANCORP, INC AND SUBSIDIARIES
Selected Financial Highlights (Unaudited)
	At and for the Three Months Ended
	June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024				June 30, 2024
	(Dollars in Thousands Except per Share Data)
Earnings Data:
Net interest income	$	88,685			$	85,830			$	84,988			$	83,008			$	80,001
Provision for credit losses on loans	6,997				5,974				4,141				4,832				5,607
Provision (recovery) of credit losses on investments	3				12				(104)				(172)				(39)
Non-interest income	5,970				5,660				6,587				6,348				6,396
Non-interest expense	58,061				60,022				63,719				57,948				59,184
Income before provision for income taxes	29,594				25,482				23,819				26,748				21,645
Net income	22,026				19,100				17,536				20,142				16,372
Performance Ratios:
Net interest margin (1)	3.32		%		3.22		%		3.12		%		3.07		%		3.00		%
Interest-rate spread (1)	2.57		%		2.38		%		2.35		%		2.26		%		2.14		%
Return on average assets (annualized)	0.77		%		0.66		%		0.61		%		0.70		%		0.57		%
Return on average tangible assets (annualized) (non-GAAP)	0.79		%		0.68		%		0.62		%		0.72		%		0.59		%
Return on average stockholders' equity (annualized)	7.04		%		6.19		%		5.69		%		6.63		%		5.49		%
Return on average tangible stockholders' equity (annualized) (non-GAAP)	8.85		%		7.82		%		7.21		%		8.44		%		7.04		%
Efficiency ratio (2)	61.34		%		65.60		%		69.58		%		64.85		%		68.50		%
Per Common Share Data:
Net income — Basic	$	0.25			$	0.21			$	0.20			$	0.23			$	0.18
Net income — Diluted	0.25				0.21				0.20				0.23				0.18
Cash dividends declared	0.135				0.135				0.135				0.135				0.135
Book value per share (end of period)	14.08				13.92				13.71				13.81				13.48
Tangible book value per share (end of period) (non-GAAP)	11.20				11.03				10.81				10.89				10.53
Stock price (end of period)	10.55				10.90				11.80				10.09				8.35
Balance Sheet:
Total assets	$	11,568,745			$	11,519,869			$	11,905,326			$	11,676,721			$	11,635,292
Total loans and leases	9,582,374				9,642,722				9,779,288				9,755,236				9,721,137
Total deposits	8,961,202				8,911,452				8,901,644				8,732,271				8,737,036
Total stockholders’ equity	1,254,171				1,240,182				1,221,939				1,230,362				1,198,480
Asset Quality:
Nonperforming assets	$	63,596			$	64,021			$	70,452			$	72,821			$	62,683
Nonperforming assets as a percentage of total assets	0.55		%		0.56		%		0.59		%		0.62		%		0.54		%
Allowance for loan and lease losses	$	126,725			$	124,145			$	125,083			$	127,316			$	121,750
Allowance for loan and lease losses as a percentage of total loans and leases	1.32		%		1.29		%		1.28		%		1.31		%		1.25		%
Net loan and lease charge-offs	$	5,127			$	7,597			$	7,252			$	3,808			$	8,387
Net loan and lease charge-offs as a percentage of average loans and leases (annualized)	0.21		%		0.31		%		0.30		%		0.16		%		0.35		%
Capital Ratios:
Stockholders’ equity to total assets	10.84		%		10.77		%		10.26		%		10.54		%		10.30		%
Tangible stockholders’ equity to tangible assets (non-GAAP)	8.82		%		8.73		%		8.27		%		8.50		%		8.23		%
(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)
	June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024				June 30, 2024
ASSETS	(In Thousands Except Share Data)
Cash and due from banks	$	87,386			$	78,741			$	64,673			$	82,168			$	60,067
Short-term investments		419,362				278,805				478,997				325,721				283,017
Total cash and cash equivalents		506,748				357,546				543,670				407,889				343,084
Investment securities available-for-sale		866,684				882,353				895,034				855,391				856,439
Total investment securities		866,684				882,353				895,034				855,391				856,439
Allowance for investment security losses		(97	)			(94	)			(82	)			(186	)			(359	)
Net investment securities		866,587				882,259				894,952				855,205				856,080
Loans and leases:
Commercial real estate loans		5,485,546				5,580,982				5,716,114				5,779,290				5,782,111
Commercial loans and leases		2,520,347				2,512,912				2,506,664				2,453,038				2,443,530
Consumer loans		1,576,481				1,548,828				1,556,510				1,522,908				1,495,496
Total loans and leases		9,582,374				9,642,722				9,779,288				9,755,236				9,721,137
Allowance for loan and lease losses		(126,725	)			(124,145	)			(125,083	)			(127,316	)			(121,750	)
Net loans and leases		9,455,649				9,518,577				9,654,205				9,627,920				9,599,387
Restricted equity securities		66,481				67,537				83,155				82,675				78,963
Premises and equipment, net of accumulated depreciation		83,963				84,439				86,781				86,925				88,378
Right-of-use asset operating leases		42,415				44,144				43,527				41,934				35,691
Deferred tax asset		52,325				52,176				56,620				50,827				60,032
Goodwill		241,222				241,222				241,222				241,222				241,222
Identified intangible assets, net of accumulated amortization		14,600				16,030				17,461				19,162				20,830
Other real estate owned and repossessed assets		1,288				917				1,103				1,579				1,974
Other assets		237,467				255,022				282,630				261,383				309,651
Total assets	$	11,568,745			$	11,519,869			$	11,905,326			$	11,676,721			$	11,635,292
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand checking accounts	$	1,726,933			$	1,664,629			$	1,692,394			$	1,681,858			$	1,638,378
NOW accounts		650,707				625,492				617,246				637,374				647,370
Savings accounts		1,795,761				1,793,852				1,721,247				1,736,989				1,735,857
Money market accounts		2,153,709				2,183,855				2,116,360				2,041,185				2,073,557
Certificate of deposit accounts		1,877,661				1,878,665				1,885,444				1,819,353				1,718,414
Brokered deposit accounts		756,431				764,959				868,953				815,512				923,460
Total deposits		8,961,202				8,911,452				8,901,644				8,732,271				8,737,036
Borrowed funds:
Advances from the FHLB		934,669				957,848				1,355,926				1,345,003				1,265,079
Subordinated debentures and notes		84,397				84,362				84,328				84,293				84,258
Other borrowed funds		135,985				113,617				79,592				68,251				80,125
Total borrowed funds		1,155,051				1,155,827				1,519,846				1,497,547				1,429,462
Operating lease liabilities		43,528				45,330				44,785				43,266				37,102
Mortgagors’ escrow accounts		15,289				15,264				15,875				14,456				17,117
Reserve for unfunded credits		4,586				5,296				5,981				6,859				11,400
Accrued expenses and other liabilities		134,918				146,518				195,256				151,960				204,695
Total liabilities		10,314,574				10,279,687				10,683,387				10,446,359				10,436,812
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		904,697				903,696				902,584				901,562				904,775
Retained earnings		475,781				465,898				458,943				453,555				445,560
Accumulated other comprehensive income		(39,378	)			(42,498	)			(52,882	)			(38,081	)			(61,693	)
Treasury stock, at cost;
7,039,136, 7,037,610, 7,019,384, 7,015,843, and 7,373,009 shares, respectively		(87,899	)			(87,884	)			(87,676	)			(87,644	)			(91,132	)
Total stockholders' equity		1,254,171				1,240,182				1,221,939				1,230,362				1,198,480
Total liabilities and stockholders' equity	$	11,568,745			$	11,519,869			$	11,905,326			$	11,676,721			$	11,635,292

 

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
	Three Months Ended
	June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024				June 30, 2024
	(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases	$	143,933			$	143,309			$	147,436			$	149,643			$	145,585
Debt securities		6,691				6,765				6,421				6,473				6,480
Restricted equity securities		1,062				1,203				1,460				1,458				1,376
Short-term investments		2,386				2,451				2,830				1,986				1,914
Total interest and dividend income		154,072				153,728				158,147				159,560				155,355
Interest expense:
Deposits		52,682				53,478				56,562				59,796				59,721
Borrowed funds		12,705				14,420				16,597				16,756				15,633
Total interest expense		65,387				67,898				73,159				76,552				75,354
Net interest income		88,685				85,830				84,988				83,008				80,001
Provision for credit losses on loans		6,997				5,974				4,141				4,832				5,607
Provision (recovery) of credit losses on investments		3				12				(104	)			(172	)			(39	)
Net interest income after provision for credit losses		81,685				79,844				80,951				78,348				74,433
Non-interest income:
Deposit fees		2,472				2,361				2,297				2,353				3,001
Loan fees		472				393				439				464				702
Loan level derivative income (loss)		(4	)			70				1,115				—				106
Gain on sales of loans and leases held-for-sale		264				24				406				415				130
Other		2,766				2,812				2,330				3,116				2,457
Total non-interest income		5,970				5,660				6,587				6,348				6,396
Non-interest expense:
Compensation and employee benefits		35,147				35,853				37,202				35,130				34,762
Occupancy		5,349				5,721				5,393				5,343				5,551
Equipment and data processing		6,841				7,012				6,780				6,831				6,732
Professional services		1,471				1,726				1,345				2,143				1,745
FDIC insurance		1,880				2,037				2,017				2,118				2,025
Advertising and marketing		1,371				868				1,303				859				1,504
Amortization of identified intangible assets		1,431				1,430				1,701				1,668				1,669
Merger and restructuring expense		439				971				3,378				—				823
Other		4,132				4,404				4,600				3,856				4,373
Total non-interest expense		58,061				60,022				63,719				57,948				59,184
Income before provision for income taxes		29,594				25,482				23,819				26,748				21,645
Provision for income taxes		7,568				6,382				6,283				6,606				5,273
Net income	$	22,026			$	19,100			$	17,536			$	20,142			$	16,372
Earnings per common share:
Basic	$	0.25			$	0.21			$	0.20			$	0.23			$	0.18
Diluted	$	0.25			$	0.21			$	0.20			$	0.23			$	0.18
Weighted average common shares outstanding during the period:
Basic		89,104,605				89,103,510				89,098,443				89,033,463				88,904,692
Diluted		89,612,781				89,567,747				89,483,964				89,319,611				89,222,315
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)
	Six Months Ended June 30,
		2025				2024
	(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases	$	287,242			$	290,850
Debt securities		13,456				13,358
Restricted equity securities		2,265				2,868
Short-term investments		4,837				3,738
Total interest and dividend income		307,800				310,814
Interest expense:
Deposits		106,160				116,605
Borrowed funds		27,125				32,620
Total interest expense		133,285				149,225
Net interest income		174,515				161,589
Provision for credit losses on loans		12,971				13,030
Provision (credit) for credit losses on investments		15				(83	)
Net interest income after provision for credit losses		161,529				148,642
Non-interest income:
Deposit Fees		4,833				5,898
Loan Fees		865				1,491
Loan level derivative income, net		66				543
Gain on sales of loans and leases held-for-sale		288				130
Other		5,578				4,618
Total non-interest income		11,630				12,680
Non-interest expense:
Compensation and employee benefits		71,000				71,391
Occupancy		11,070				11,320
Equipment and data processing		13,853				13,763
Professional services		3,197				3,645
FDIC insurance		3,917				3,909
Advertising and marketing		2,239				3,078
Amortization of identified intangible assets		2,861				3,377
Merger and restructuring expense		1,410				823
Other		8,536				8,892
Total non-interest expense		118,083				120,198
Income before provision for income taxes		55,076				41,124
Provision for income taxes		13,950				10,087
Net income	$	41,126			$	31,037
Earnings per common share:
Basic	$	0.46			$	0.35
Diluted	$	0.46			$	0.35
Weighted average common shares outstanding during the period:
Basic		89,104,060				88,899,635
Diluted		89,590,267				89,201,912
Dividends paid per common share	$	0.270			$	0.270

 

 

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Asset Quality Analysis (Unaudited)
	At and for the Three Months Ended
		June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024				June 30, 2024
	(Dollars in Thousands)
NONPERFORMING ASSETS:
Loans and leases accounted for on a nonaccrual basis:
Commercial real estate mortgage	$	987			$	10,842			$	11,525			$	11,595			$	11,659
Multi-family mortgage		1,433				6,576				6,596				1,751				—
Total commercial real estate loans		2,420				17,418				18,121				13,346				11,659
Commercial		8,687				7,415				14,676				15,734				16,636
Equipment financing		46,067				32,975				31,509				37,223				27,128
Total commercial loans and leases		54,754				40,390				46,185				52,957				43,764
Residential mortgage		3,572				3,962				3,999				3,862				4,495
Home equity		1,561				1,333				1,043				1,076				790
Other consumer		1				1				1				1				1
Total consumer loans		5,134				5,296				5,043				4,939				5,286
Total nonaccrual loans and leases		62,308				63,104				69,349				71,242				60,709
Other real estate owned		700				700				700				780				780
Other repossessed assets		588				217				403				799				1,194
Total nonperforming assets	$	63,596			$	64,021			$	70,452			$	72,821			$	62,683
Loans and leases past due greater than 90 days and still accruing	$	24,899			$	3,009			$	811			$	16,091			$	4,994
Nonperforming loans and leases as a percentage of total loans and leases		0.65	%			0.65	%			0.71	%			0.73	%			0.62	%
Nonperforming assets as a percentage of total assets		0.55	%			0.56	%			0.59	%			0.62	%			0.54	%
PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:
Allowance for loan and lease losses at beginning of period	$	124,145			$	125,083			$	127,316			$	121,750			$	120,124
Charge-offs		(5,601	)			(9,073	)			(8,414	)			(4,183	)			(8,823	)
Recoveries		474				1,476				1,162				375				436
Net charge-offs		(5,127	)			(7,597	)			(7,252	)			(3,808	)			(8,387	)
Provision for loan and lease losses excluding unfunded commitments *		7,707				6,659				5,019				9,374				10,013
Allowance for loan and lease losses at end of period	$	126,725			$	124,145			$	125,083			$	127,316			$	121,750
Allowance for loan and lease losses as a percentage of total loans and leases		1.32	%			1.29	%			1.28	%			1.31	%			1.25	%
NET CHARGE-OFFS:
Commercial real estate loans	$	3,524			$	—			$	—			$	—			$	3,819
Commercial loans and leases		1,640				7,647				7,257				3,797				4,571
Consumer loans		(37	)			(50	)			(5	)			11				(3	)
Total net charge-offs	$	5,127			$	7,597			$	7,252			$	3,808			$	8,387
Net loan and lease charge-offs as a percentage of average loans and leases (annualized)		0.21	%			0.31	%			0.30	%			0.16	%			0.35	%
*Provision for loan and lease losses does not include (credit) provision of $(0.7 million), $(0.7 million), $(0.9 million), $(4.5 million), and $(4.4 million) for credit losses on unfunded commitments during the three months ended June 30, 2025, March 31, 2025, December 31, 2024, September 30, 2024, and June 30, 2024, respectively.

 

 

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Average Yields / Costs (Unaudited)
	Three Months Ended
	June 30, 2025												March 31, 2025												June 30, 2024
	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)	$	874,212			$	6,752				3.09	%		$	888,913			$	6,814				3.07	%		$	846,469			$	6,510				3.08	%
Restricted equity securities (2)		65,724				1,062				6.46	%			69,784				1,204				6.90	%			71,696				1,375				7.67	%
Short-term investments		215,982				2,386				4.42	%			202,953				2,451				4.83	%			143,800				1,914				5.33	%
Total investments		1,155,918				10,200				3.53	%			1,161,650				10,469				3.60	%			1,061,965				9,799				3.69	%
Loans and Leases:
Commercial real estate loans (3)		5,533,208				77,136				5.51	%			5,651,390				77,243				5.47	%			5,754,901				81,565				5.61	%
Commercial loans (3)		1,286,908				20,757				6.38	%			1,237,078				19,698				6.37	%			1,069,154				17,672				6.54	%
Equipment financing (3)		1,240,128				25,069				8.09	%			1,281,425				25,965				8.11	%			1,374,217				26,255				7.64	%
Consumer loans (3)		1,556,254				21,437				5.51	%			1,548,973				20,861				5.41	%			1,488,587				20,291				5.46	%
Total loans and leases		9,616,498				144,399				6.01	%			9,718,866				143,767				5.92	%			9,686,859				145,783				6.02	%
Total interest-earning assets		10,772,416				154,599				5.74	%			10,880,516				154,236				5.67	%			10,748,824				155,582				5.79	%
Non-interest-earning assets		630,518												662,814												704,570
Total assets	$	11,402,934											$	11,543,330											$	11,453,394
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts	$	637,786				1,034				0.65	%		$	628,346				1,005				0.65	%		$	659,351				1,111				0.68	%
Savings accounts		1,780,838				10,692				2.41	%			1,743,688				10,173				2.37	%			1,731,388				11,874				2.76	%
Money market accounts		2,189,373				13,990				2.56	%			2,187,581				13,587				2.52	%			2,026,780				15,520				3.08	%
Certificates of deposit		1,879,749				18,437				3.93	%			1,886,386				19,593				4.21	%			1,699,510				18,717				4.43	%
Brokered deposit accounts		748,205				8,529				4.57	%			767,275				9,120				4.82	%			958,146				12,499				5.25	%
Total interest-bearing deposits		7,235,951				52,682				2.92	%			7,213,276				53,478				3.01	%			7,075,175				59,721				3.39	%
Borrowings
Advances from the FHLB		904,399				10,422				4.56	%			1,007,508				11,847				4.70	%			1,049,609				12,894				4.86	%
Subordinated debentures and notes		84,380				1,718				8.14	%			84,345				1,701				8.07	%			84,241				1,375				6.53	%
Other borrowed funds		46,086				565				4.93	%			71,462				872				4.95	%			103,753				1,364				5.29	%
Total borrowings		1,034,865				12,705				4.86	%			1,163,315				14,420				4.96	%			1,237,603				15,633				5.00	%
Total interest-bearing liabilities		8,270,816				65,387				3.17	%			8,376,591				67,898				3.29	%			8,312,778				75,354				3.65	%
Non-interest-bearing liabilities:
Demand checking accounts		1,654,594												1,680,527												1,646,869
Other non-interest-bearing liabilities		225,469												251,011												300,362
Total liabilities		10,150,879												10,308,129												10,260,009
Stockholders’ equity		1,252,055												1,235,201												1,193,385
Total liabilities and equity	$	11,402,934											$	11,543,330											$	11,453,394
Net interest income (tax-equivalent basis) /Interest-rate spread (4)						89,212				2.57	%							86,338				2.38	%							80,228				2.14	%
Less adjustment of tax-exempt income						527												508												227
Net interest income					$	88,685											$	85,830											$	80,001
Net interest margin (5)										3.32	%											3.22	%											3.00	%
(1) Tax-exempt income on debt securities, equity securities and revenue bonds included in commercial real estate loans is included on a tax-equivalent basis.
(2) Average balances include unrealized gains (losses) on investment securities. Dividend payments may not be consistent and average yield on equity securities may vary from month to month.
(3) Loans on nonaccrual status are included in the average balances.
(4) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
(5) Net interest margin represents net interest income (tax-equivalent basis) divided by average interest-earning assets on an actual/actual basis.

 

 

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Average Yields / Costs (Unaudited)
	Six Months Ended
	June 30, 2025												June 30, 2024
	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)	$	881,522			$	13,566				3.08	%		$	869,848			$	13,437				3.09	%
Restricted equity securities (2)		67,743				2,266				6.69	%			74,015				2,868				7.75	%
Short-term investments		209,503				4,837				4.62	%			137,284				3,738				5.45	%
Total investments		1,158,768				20,669				3.57	%			1,081,147				20,043				3.71	%
Loans and Leases:
Commercial real estate loans (3)		5,591,973				154,379				5.49	%			5,758,318				162,614				5.59	%
Commercial loans (3)		1,262,130				40,455				6.38	%			1,047,810				35,179				6.64	%
Equipment financing (3)		1,260,663				51,034				8.10	%			1,374,322				53,150				7.73	%
Consumer loans (3)		1,552,633				42,298				5.46	%			1,485,702				40,269				5.43	%
Total loans and leases		9,667,399				288,166				5.96	%			9,666,152				291,212				6.03	%
Total interest-earning assets		10,826,167				308,835				5.71	%			10,747,299				311,255				5.79	%
Non-interest-earning assets		646,577												684,343
Total assets	$	11,472,744											$	11,431,642
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts	$	633,092				2,039				0.65	%		$	665,632				2,372				0.72	%
Savings accounts		1,762,366				20,865				2.39	%			1,712,804				23,226				2.73	%
Money market accounts		2,188,482				27,577				2.54	%			2,051,542				31,474				3.09	%
Certificates of deposit		1,883,049				38,030				4.07	%			1,661,814				35,389				4.28	%
Brokered deposit accounts		757,687				17,649				4.70	%			927,465				24,144				5.23	%
Total interest-bearing deposits		7,224,676				106,160				2.96	%			7,019,257				116,605				3.34	%
Borrowings
Advances from the FHLB		955,669				22,269				4.63	%			1,107,071				27,527				4.92	%
Subordinated debentures and notes		84,363				3,419				8.11	%			84,223				2,752				6.54	%
Other borrowed funds		58,704				1,437				4.94	%			98,406				2,341				4.78	%
Total borrowings		1,098,736				27,125				4.91	%			1,289,700				32,620				5.00	%
Total interest-bearing liabilities		8,323,412				133,285				3.23	%			8,308,957				149,225				3.61	%
Non-interest-bearing liabilities:
Demand checking accounts		1,667,489												1,635,690
Other non-interest-bearing liabilities		238,169												289,351
Total liabilities		10,229,070												10,233,998
Stockholders’ equity		1,243,674												1,197,644
Total liabilities and equity	$	11,472,744											$	11,431,642
Net interest income (tax-equivalent basis) /Interest-rate spread (4)						175,550				2.48	%							162,030				2.18	%
Less adjustment of tax-exempt income						1,035												441
Net interest income					$	174,515											$	161,589
Net interest margin (5)										3.27	%											3.03	%
(1) Tax-exempt income on debt securities, equity securities and revenue bonds included in commercial real estate loans is included on a tax-equivalent basis.
(2) Average balances include unrealized gains (losses) on investment securities. Dividend payments may not be consistent and average yield on equity securities may vary from month to month.
(3) Loans on nonaccrual status are included in the average balances.
(4) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
(5) Net interest margin represents net interest income (tax-equivalent basis) divided by average interest-earning assets on an actual/actual basis.

 

 

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Non-GAAP Financial Information (Unaudited)
	At and for the Three Months Ended March 31,								At and for the Six Months Ended June 30,
		2025				2024				2025				2024
Reconciliation Table - Non-GAAP Financial Information	(Dollars in Thousands Except Share Data)								(Dollars in Thousands Except Share Data)
Reported Pretax Income	$	29,594			$	21,645			$	55,076			$	41,124
Add:
Merger and restructuring expense		439				823				1,410				823
Operating Pretax Income	$	30,033			$	22,468			$	56,486			$	41,947
Effective tax rate		25.3	%			24.4	%			24.8	%			24.5	%
Provision for income taxes		7,590				5,473				14,008				10,289
Operating earnings after tax	$	22,443			$	16,995			$	42,478			$	31,658
Operating earnings per common share:
Basic	$	0.25			$	0.19			$	0.48			$	0.36
Diluted	$	0.25			$	0.19			$	0.47			$	0.35
Weighted average common shares outstanding during the period:
Basic		89,104,605				88,904,692				89,104,060				88,899,635
Diluted		89,612,781				89,222,315				89,590,267				89,201,912
Return on average assets *		0.77	%			0.57	%			0.72	%			0.54	%
Add:
Merger and restructuring expense (after-tax) *		0.01	%			0.02	%			0.02	%			0.01	%
Operating return on average assets *		0.78	%			0.59	%			0.74	%			0.55	%
Return on average tangible assets *		0.79	%			0.59	%			0.73	%			0.56	%
Add:
Merger and restructuring expense (after-tax) *		0.01	%			0.02	%			0.02	%			0.01	%
Operating return on average tangible assets *		0.80	%			0.61	%			0.75	%			0.57	%
Return on average stockholders' equity *		7.04	%			5.49	%			6.61	%			5.18	%
Add:
Merger and restructuring expense (after-tax) *		0.10	%			0.21	%			0.17	%			0.10	%
Operating return on average stockholders' equity *		7.14	%			5.70	%			6.78	%			5.28	%
Return on average tangible stockholders' equity *		8.85	%			7.04	%			8.34	%			6.65	%
Add:
Merger and restructuring expense (after-tax) *		0.13	%			0.27	%			0.21	%			0.13	%
Operating return on average tangible stockholders' equity *		8.98	%			7.31	%			8.55	%			6.78	%
* Ratios at and for the three months and six months ended are annualized.

 

	At and for the Three Months Ended
	June 30, 2025			March 31, 2025				December 31, 2024				September 30, 2024				June 30, 2024
	(Dollars in Thousands)
Net income, as reported	$	22,026		$	19,100			$	17,536			$	20,142			$	16,372
Average total assets	$	11,402,934		$	11,543,330			$	11,580,572			$	11,451,338			$	11,453,394
Less: Average goodwill and average identified intangible assets, net		256,508			257,941				259,496				261,188				262,859
Average tangible assets	$	11,146,426		$	11,285,389			$	11,321,076			$	11,190,150			$	11,190,535
Return on average tangible assets (annualized)		0.79	%		0.68	%			0.62	%			0.72	%			0.59	%
Average total stockholders’ equity	$	1,252,055		$	1,235,201			$	1,232,527			$	1,216,037			$	1,193,385
Less: Average goodwill and average identified intangible assets, net		256,508			257,941				259,496				261,188				262,859
Average tangible stockholders’ equity	$	995,547		$	977,260			$	973,031			$	954,849			$	930,526
Return on average tangible stockholders’ equity (annualized)		8.85	%		7.82	%			7.21	%			8.44	%			7.04	%
Total stockholders’ equity	$	1,254,171		$	1,240,182			$	1,221,939			$	1,230,362			$	1,198,480
Less:
Goodwill		241,222			241,222				241,222				241,222				241,222
Identified intangible assets, net		14,600			16,030				17,461				19,162				20,830
Tangible stockholders' equity	$	998,349		$	982,930			$	963,256			$	969,978			$	936,428
Total assets	$	11,568,745		$	11,519,869			$	11,905,326			$	11,676,721			$	11,635,292
Less:
Goodwill		241,222			241,222				241,222				241,222				241,222
Identified intangible assets, net		14,600			16,030				17,461				19,162				20,830
Tangible assets	$	11,312,923		$	11,262,617			$	11,646,643			$	11,416,337			$	11,373,240
Tangible stockholders’ equity to tangible assets		8.82	%		8.73	%			8.27	%			8.50	%			8.23	%
Tangible stockholders' equity	$	998,349		$	982,930			$	963,256			$	969,978			$	936,428
Number of common shares issued		96,998,075			96,998,075				96,998,075				96,998,075				96,998,075
Less:
Treasury shares		7,039,136			7,037,610				7,019,384				7,015,843				7,373,009
Unvested restricted shares		854,334			855,860				880,248				883,789				713,443
Number of common shares outstanding		89,104,605			89,104,605				89,098,443				89,098,443				88,911,623
Tangible book value per common share	$	11.20		$	11.03			$	10.81			$	10.89			$	10.53

 

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FAQ

What were Brookline Bancorp's (BRKL) Q2 2025 earnings per share?

Brookline Bancorp reported earnings of $0.25 per basic and diluted share for Q2 2025, compared to $0.21 in Q1 2025 and $0.18 in Q2 2024.

What is BRKL's dividend payment for Q2 2025?

Brookline Bancorp declared a quarterly dividend of $0.135 per share, payable on August 22, 2025 to stockholders of record on August 8, 2025.

How did Brookline Bancorp's deposits perform in Q2 2025?

Total deposits increased by $49.8 million to $9.0 billion, driven by a $58.3 million increase in customer deposits, partially offset by an $8.5 million decline in brokered deposits.

What was BRKL's net interest margin in Q2 2025?

The net interest margin increased to 3.32% in Q2 2025, up 10 basis points from 3.22% in Q1 2025, primarily driven by lower funding costs and higher yields on loans and leases.

How did Brookline's asset quality metrics perform in Q2 2025?

The nonperforming loans ratio remained stable at 0.65%, with total nonaccrual loans decreasing to $62.3 million. The allowance for loan and lease losses increased to 1.32% of total loans.