Brookline Bancorp (BRKL) investor relations material

Executive summary

• Net income for Q2 2025 was $22.0 million, or $0.25 per share, up 34.5% year-over-year, with operating earnings of $22.4 million excluding merger expenses.

• Customer deposits increased by $59 million, while loans declined by $61 million, mainly due to a $95 million reduction in commercial real estate loans.

• The merger with Berkshire Hills Bancorp was approved by stockholders and is expected to close in the second half of 2025, with system conversion targeted for February 2026.

• Quarterly dividend of $0.135 per share declared, payable August 22, 2025.

• Total assets at June 30, 2025 were $11.6 billion, with core deposits rising and brokered deposits declining.

Financial highlights

• Net interest income rose to $88.7 million, up $2.9 million sequentially and $8.7 million year-over-year, driven by lower funding costs and higher loan yields.

• Net interest margin improved to 3.32%, up 10 basis points sequentially and 32 basis points year-over-year.

• Non-interest expense, excluding merger charges, decreased by $1.3 million from Q1; merger expenses were $439,000.

• Provision for credit losses was $7.0 million, up $1.0 million sequentially and $1.4 million year-over-year; net charge-offs totaled $5.1 million.

• Allowance for loan and lease losses coverage ratio increased to 1.32% of total loans and leases.

Outlook and guidance

• Net interest margin expected to remain stable or improve slightly in Q3, with sensitivity to deposit pricing and funding mix.

• Loan portfolio growth anticipated in the low single digits for the remainder of 2025, with deposit growth of 4–5%.

• Non-interest income projected between $5.5 million and $6.5 million per quarter.

• Effective tax rate expected to be 24–25%, excluding non-deductible merger charges.

• Merger with Berkshire Hills Bancorp expected to close in H2 2025, with system conversion in February 2026 and projected cost savings and EPS accretion in 2026.