# EDGAR Filing Document

**Accession Number:** 0001049782
**File Stem:** 0001049782-25-000016
**Filing Date:** 2025-8
**Character Count:** 347763
**Document Hash:** 273a272f8b74a457f17db11c26e7b8ae
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001049782-25-000016.hdr.sgml**: 20250807

**ACCESSION NUMBER**: 0001049782-25-000016

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 87

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250807

**DATE AS OF CHANGE**: 20250807

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** BROOKLINE BANCORP INC
- **CENTRAL INDEX KEY:** 0001049782
- **STANDARD INDUSTRIAL CLASSIFICATION:** SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 000000000
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-23695
- **FILM NUMBER:** 251192455

**BUSINESS ADDRESS:**
- **STREET 1:** 131 CLARENDON STREET
- **CITY:** BOSTON
- **STATE:** MA
- **ZIP:** 02116
- **BUSINESS PHONE:** 617-425-4600

**MAIL ADDRESS:**
- **STREET 1:** 131 CLARENDON STREET
- **CITY:** BOSTON
- **STATE:** MA
- **ZIP:** 02116

?xml version='1.0' encoding='ASCII'? brkl-20250630

**UNITED STATES SECURITIES AND EXCHANGE COMMISSION**

**Washington, DC 20549**

**FORM 10-Q** 

**(Mark One)** 

☒ **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the quarterly period ended June 30, 2025** 

**OR**

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; N/A&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; .**

**Commission file number 0-23695** 

**BROOKLINE BANCORP, INC.**

(Exact name of registrant as specified in its charter)

---

| | |
|:---|:---|
| **Delaware** | **04-3402944** |
| (State or other jurisdiction of <br>incorporation or organization) | (I.R.S. Employer Identification No.) |
| **131 Clarendon Street** | |
| **Boston MA** | **02116** |
| (Address of principal executive offices) | (Zip Code) |

---

**(617) 425-4600** 

(Registrant's telephone number, including area code)

---

| | | |
|:---|:---|:---|
| Securities registered pursuant to Section 12(b) of the Act: | Securities registered pursuant to Section 12(b) of the Act: | Securities registered pursuant to Section 12(b) of the Act: |
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| Common Stock | BRKL | Nasdaq Global Select Market |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12-b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☒ | Accelerated filer | ☐ |
| Non-accelerated filer | ☐  | Smaller Reporting Company | ☐ |
| | | Emerging growth company | ☐ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

------

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

At July 31, 2025, the number of shares of common stock, par value $0.01 per share, outstanding was 89,104,605.

------

**BROOKLINE BANCORP, INC. AND SUBSIDIARIES**

**FORM 10-Q**

**Table of Contents**

---

| | | |
|:---|:---|:---|
| | | **Page** |
| | <u>[Glossary of Acronyms and Terms](#ia9c9151aad374d90a659f9800c73bdd8_13)</u> | <u>[ii](#ia9c9151aad374d90a659f9800c73bdd8_10)</u> |
| **<u>[Part I](#ia9c9151aad374d90a659f9800c73bdd8_16)</u>** | **<u>[Financial Information](#ia9c9151aad374d90a659f9800c73bdd8_16)</u>** |  |
| <u>Item 1.</u> | <u>[Unaudited Consolidated Financial Statements](#ia9c9151aad374d90a659f9800c73bdd8_19)</u> |  |
|  | <u>[Unaudited Consolidated Balance Sheets at June 30, 2025 and December 31, 2024](#ia9c9151aad374d90a659f9800c73bdd8_22)</u> | <u>[1](#ia9c9151aad374d90a659f9800c73bdd8_22)</u> |
|  | <u>[Unaudited Consolidated Statements of Income for the Three Months and Six months Ended June 30, 2025 and 2024](#ia9c9151aad374d90a659f9800c73bdd8_25)</u> | <u>[2](#ia9c9151aad374d90a659f9800c73bdd8_25)</u> |
|  | <u>[Unaudited Consolidated Statements of Comprehensive Income for the Three Months and Six Months Ended June 30, 2025 and 2024](#ia9c9151aad374d90a659f9800c73bdd8_28)</u> | <u>[3](#ia9c9151aad374d90a659f9800c73bdd8_28)</u> |
|  | <u>[Unaudited Consolidated Statements of Changes in Equity for the Three Months and Six Months Ended June 30, 2025 and 2024](#ia9c9151aad374d90a659f9800c73bdd8_31)</u> | <u>[4](#ia9c9151aad374d90a659f9800c73bdd8_31)</u> |
|  | <u>[Unaudited Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2025 and 2024](#ia9c9151aad374d90a659f9800c73bdd8_34)</u> | <u>[6](#ia9c9151aad374d90a659f9800c73bdd8_34)</u> |
|  | <u>[Notes to Unaudited Consolidated Financial Statements](#ia9c9151aad374d90a659f9800c73bdd8_37)</u> | <u>[8](#ia9c9151aad374d90a659f9800c73bdd8_40)</u> |
| <u>[Item 2.](#ia9c9151aad374d90a659f9800c73bdd8_112)</u> | <u>[Management's Discussion and Analysis of Financial Condition and Results of Operations](#ia9c9151aad374d90a659f9800c73bdd8_112)</u> | <u>[49](#ia9c9151aad374d90a659f9800c73bdd8_112)</u> |
| <u>[Item 3.](#ia9c9151aad374d90a659f9800c73bdd8_253)</u> | <u>[Quantitative and Qualitative Disclosures About Market Risk](#ia9c9151aad374d90a659f9800c73bdd8_253)</u> | <u>[85](#ia9c9151aad374d90a659f9800c73bdd8_253)</u> |
| <u>[Item 4.](#ia9c9151aad374d90a659f9800c73bdd8_256)</u> | <u>[Controls and Procedures](#ia9c9151aad374d90a659f9800c73bdd8_256)</u> | <u>[87](#ia9c9151aad374d90a659f9800c73bdd8_256)</u> |
| **<u>[Part II](#ia9c9151aad374d90a659f9800c73bdd8_259)</u>** | **<u>[Other Information](#ia9c9151aad374d90a659f9800c73bdd8_259)</u>** |  |
| <u>[Item 1.](#ia9c9151aad374d90a659f9800c73bdd8_262)</u> | <u>[Legal Proceedings](#ia9c9151aad374d90a659f9800c73bdd8_262)</u> | <u>[88](#ia9c9151aad374d90a659f9800c73bdd8_262)</u> |
| <u>[Item 1A.](#ia9c9151aad374d90a659f9800c73bdd8_265)</u> | <u>[Risk Factors](#ia9c9151aad374d90a659f9800c73bdd8_265)</u> | <u>[88](#ia9c9151aad374d90a659f9800c73bdd8_265)</u> |
| <u>[Item 2.](#ia9c9151aad374d90a659f9800c73bdd8_268)</u> | <u>[Unregistered Sales of Equity Securities and Use of Proceeds](#ia9c9151aad374d90a659f9800c73bdd8_268)</u> | <u>[88](#ia9c9151aad374d90a659f9800c73bdd8_268)</u> |
| <u>[Item 3.](#ia9c9151aad374d90a659f9800c73bdd8_271)</u> | <u>[Defaults Upon Senior Securities](#ia9c9151aad374d90a659f9800c73bdd8_271)</u> | <u>[88](#ia9c9151aad374d90a659f9800c73bdd8_271)</u> |
| <u>[Item 4.](#ia9c9151aad374d90a659f9800c73bdd8_274)</u> | <u>[Mine Safety Disclosures](#ia9c9151aad374d90a659f9800c73bdd8_274)</u> | <u>[88](#ia9c9151aad374d90a659f9800c73bdd8_274)</u> |
| <u>[Item 5.](#ia9c9151aad374d90a659f9800c73bdd8_277)</u> | <u>[Other Information](#ia9c9151aad374d90a659f9800c73bdd8_277)</u> | <u>[88](#ia9c9151aad374d90a659f9800c73bdd8_277)</u> |
| <u>[Item 6.](#ia9c9151aad374d90a659f9800c73bdd8_280)</u> | <u>[Exhibits](#ia9c9151aad374d90a659f9800c73bdd8_280)</u> | <u>[89](#ia9c9151aad374d90a659f9800c73bdd8_280)</u> |
|  | <u>[Signatures](#ia9c9151aad374d90a659f9800c73bdd8_283)</u> | <u>[90](#ia9c9151aad374d90a659f9800c73bdd8_283)</u> |

---

i

------

---

| | |
|:---|:---|
| **Glossary of Acronyms and Terms** | **Glossary of Acronyms and Terms** |
| 2014 Plan | Brookline Bancorp, Inc. 2014 Equity Incentive Plan |
| 2021 Plan | Brookline Bancorp, Inc. 2021 Stock Option and Incentive Plan |
| ACL | Allowance for Credit Losses |
| AFX | American Financial Exchange |
| ALCO | Asset/Liability Committee |
| BankRI | Bank Rhode Island |
| Banks | Brookline Bank, Bank Rhode Island, and PCSB Bank |
| C&I | Commercial and industrial |
| Clarendon Private | Clarendon Private, LLC |
| CMOs | Collateralized mortgage obligations |
| CODM | Chief Operating Decision Maker |
| Company | Brookline Bancorp, Inc. and its subsidiaries |
| CRE | Commercial real estate |
| Eastern Funding | Eastern Funding, LLC |
| EPS | Earnings per Share |
| EVE | Economic Value of Equity |
| FASB | Financial Accounting Standards Board |
| FDIC | Federal Deposit Insurance Corporation |
| FHLB | Federal Home Loan Bank of Boston and New York |
| FHLMC | Federal Home Loan Mortgage Corporation |
| FNMA | Federal National Mortgage Association |
| FRB | Board of Governors of the Federal Reserve System |
| GAAP | U.S generally accepted accounting principles |
| GNMA | Government National Mortgage Association |
| GSEs | U.S. Government-sponsored enterprises |
| IBORs | Interbank Offered Rates |
| LEQ | Loan equivalency |
| MBSs | Mortgage-backed securities |
| OAEM | Other Assets Especially Mentioned |
| OCI | Other comprehensive income |
| OREO | Other Real Estate Owned |
| Plans | The 2014 Plan and the 2021 Plan |
| SBA | Small Business Administration |
| SEC | U.S. Securities and Exchange Commission |

---

ii

------

<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

**PART I — FINANCIAL INFORMATION**

**Item 1. Unaudited Consolidated Financial Statements**

---

| | | |
|:---|:---|:---|
| **BROOKLINE BANCORP, INC. AND SUBSIDIARIES<br>Unaudited Consolidated Balance Sheets** | **BROOKLINE BANCORP, INC. AND SUBSIDIARIES<br>Unaudited Consolidated Balance Sheets** | **BROOKLINE BANCORP, INC. AND SUBSIDIARIES<br>Unaudited Consolidated Balance Sheets** |
| | **At June 30, 2025** | **At December 31, 2024** |
| | **(In Thousands Except Share Data)** | **(In Thousands Except Share Data)** |
| ***ASSETS*** | | |
| Cash and due from banks | $87386 | $64673 |
| Short-term investments | 419362 | 478997 |
| &nbsp;&nbsp;&nbsp;Total cash and cash equivalents | 506748 | 543670 |
| Investment securities available-for-sale | 866684 | 895034 |
| &nbsp;&nbsp;&nbsp;Total investment securities | 866684 | 895034 |
| Allowance for investment security credit losses | (97) | (82) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net investment securities | 866587 | 894952 |
| Loans and leases: |  |  |
| &nbsp;&nbsp;&nbsp;Commercial real estate loans | 5485546 | 5716114 |
| &nbsp;&nbsp;&nbsp;Commercial loans and leases | 2520347 | 2506664 |
| &nbsp;&nbsp;&nbsp;Consumer loans | 1576481 | 1556510 |
| &nbsp;&nbsp;&nbsp;Total loans and leases | 9582374 | 9779288 |
| Allowance for loan and lease losses | (126725) | (125083) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loans and leases | 9455649 | 9654205 |
| Restricted equity securities | 66481 | 83155 |
| Premises and equipment, net of accumulated depreciation of $107,167 and $103,466, respectively | 83963 | 86781 |
| Right-of-use asset operating leases | 42415 | 43527 |
| Deferred tax asset | 52325 | 56620 |
| Goodwill | 241222 | 241222 |
| Identified intangible assets, net of accumulated amortization of $17,265 and $16,526, respectively | 14600 | 17461 |
| OREO and repossessed assets, net | 1288 | 1103 |
| Other assets | 237467 | 282630 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $11568745 | $11905326 |
| ***LIABILITIES AND STOCKHOLDERS' EQUITY*** |  |  |
| Deposits: |  |  |
| &nbsp;&nbsp;&nbsp;Demand checking accounts | $1726933 | $1692394 |
| &nbsp;&nbsp; Interest-bearing deposits | 7234269 | 7209250 |
| &nbsp;&nbsp;&nbsp;Total deposits | 8961202 | 8901644 |
| Borrowed funds: |  |  |
| &nbsp;&nbsp;&nbsp;Advances from the FHLB | 934669 | 1355926 |
| &nbsp;&nbsp;&nbsp;Subordinated debentures and notes | 84397 | 84328 |
| &nbsp;&nbsp;&nbsp;Other borrowed funds | 135985 | 79592 |
| &nbsp;&nbsp;&nbsp;Total borrowed funds | 1155051 | 1519846 |
| Operating lease liabilities | 43528 | 44785 |
| Mortgagors' escrow accounts | 15289 | 15875 |
| Reserve for unfunded credits | 4586 | 5981 |
| Accrued expenses and other liabilities | 134918 | 195256 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 10314574 | 10683387 |
| Commitments and contingencies (Note 12) |  |  |
| Stockholders' Equity: |  |  |
| &nbsp;&nbsp;&nbsp;Brookline Bancorp, Inc. stockholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock, $0.01 par value; 200,000,000 shares authorized; 96,998,075 shares issued and 96,998,075 shares issued, respectively | 970 | 970 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 904697 | 902584 |
| &nbsp;&nbsp;&nbsp;&nbsp;Retained earnings | 475781 | 458943 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive (loss) income | (39378) | (52882) |
| &nbsp;&nbsp;&nbsp;&nbsp;Treasury stock, at cost; 7,039,136 shares and 7,019,384 shares, respectively | (87899) | (87676) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 1254171 | 1221939 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $11568745 | $11905326 |

---

See accompanying notes to unaudited consolidated financial statements.

------

<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

**BROOKLINE BANCORP, INC. AND SUBSIDIARIES**

**Unaudited Consolidated Statements of Income**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| | **(In Thousands Except Share Data)** | **(In Thousands Except Share Data)** | **(In Thousands Except Share Data)** | **(In Thousands Except Share Data)** |
| Interest and dividend income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Loans and leases | $143933 | $145585 | $287242 | $290850 |
| &nbsp;&nbsp;&nbsp;Debt securities | 6691 | 6480 | 13456 | 13358 |
| &nbsp;&nbsp;&nbsp;Restricted equity securities | 1062 | 1376 | 2265 | 2868 |
| &nbsp;&nbsp;&nbsp;Short-term investments | 2386 | 1914 | 4837 | 3738 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest and dividend income | 154072 | 155355 | 307800 | 310814 |
| Interest expense: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Deposits | 52682 | 59721 | 106160 | 116605 |
| &nbsp;&nbsp;&nbsp;Borrowed funds | 12705 | 15633 | 27125 | 32620 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest expense | 65387 | 75354 | 133285 | 149225 |
| Net interest income | 88685 | 80001 | 174515 | 161589 |
| Provision for credit losses on loans | 6997 | 5607 | 12971 | 13030 |
| Provision (recovery) of credit losses on investments | 3 | (39) | 15 | (83) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net interest income after provision for credit losses | 81685 | 74433 | 161529 | 148642 |
| Non-interest income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Deposit fees | 2472 | 3001 | 4833 | 5898 |
| &nbsp;&nbsp;&nbsp;Loan fees | 472 | 702 | 865 | 1491 |
| &nbsp;&nbsp;&nbsp;Loan level derivative income (loss) | (4) | 106 | 66 | 543 |
| &nbsp;&nbsp;&nbsp;Gain on sales of loans and leases held-for-sale | 264 | 130 | 288 | 130 |
| &nbsp;&nbsp;&nbsp;Other | 2766 | 2457 | 5578 | 4618 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-interest income | 5970 | 6396 | 11630 | 12680 |
| Non-interest expense: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Compensation and employee benefits | 35147 | 34762 | 71000 | 71391 |
| &nbsp;&nbsp;&nbsp;Occupancy | 5349 | 5551 | 11070 | 11320 |
| &nbsp;&nbsp;&nbsp;Equipment and data processing | 6841 | 6732 | 13853 | 13763 |
| &nbsp;&nbsp;&nbsp;Professional services | 1471 | 1745 | 3197 | 3645 |
| &nbsp;&nbsp;&nbsp;FDIC insurance | 1880 | 2025 | 3917 | 3909 |
| &nbsp;&nbsp;&nbsp;Advertising and marketing | 1371 | 1504 | 2239 | 3078 |
| &nbsp;&nbsp;&nbsp;Amortization of identified intangible assets | 1431 | 1669 | 2861 | 3377 |
| &nbsp;&nbsp;&nbsp;Merger and restructuring expense | 439 | 823 | 1410 | 823 |
| &nbsp;&nbsp;&nbsp;Other | 4132 | 4373 | 8536 | 8892 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-interest expense | 58061 | 59184 | 118083 | 120198 |
| Income before provision for income taxes | 29594 | 21645 | 55076 | 41124 |
| Provision for income taxes | 7568 | 5273 | 13950 | 10087 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income | $22026 | $16372 | $41126 | $31037 |
| Earnings per common share: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic | $0.25 | $0.18 | $0.46 | $0.35 |
| &nbsp;&nbsp;&nbsp;Diluted | 0.25 | 0.18 | 0.46 | 0.35 |
| Weighted average common shares outstanding: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic | 89104605 | 88904692 | 89104060 | 88899635 |
| &nbsp;&nbsp;&nbsp;Diluted | 89612781 | 89222315 | 89590267 | 89201912 |
| Dividends paid per common share | $0.135 | $0.135 | $0.270 | $0.270 |

---

See accompanying notes to unaudited consolidated financial statements.

------

<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

**BROOKLINE BANCORP, INC. AND SUBSIDIARIES**

**Unaudited Consolidated Statements of Comprehensive Income** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** |
| Net income | $22026 | $16372 | $41126 | $31037 |
| &nbsp;&nbsp;&nbsp;Investment securities available-for-sale: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized securities holding gains (losses) | 5558 | (1252) | 18139 | (9453) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax (expense) benefit | (1231) | 342 | (4075) | 2266 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net unrealized securities holding gains (losses) before reclassification adjustments, net of taxes | 4327 | (910) | 14064 | (7187) |
| &nbsp;&nbsp;&nbsp;Cash flow hedges: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of cash flow hedges | (204) | (1026) | (2824) | (4401) |
| &nbsp;&nbsp;&nbsp;&nbsp; Income tax (expense) benefit | 47 | 267 | 709 | 1061 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in fair value of cash flow hedges, net of taxes | (157) | (759) | (2115) | (3340) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less reclassification adjustment for change in fair value of cash flow hedges: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain (loss) on change in fair value of cash flow hedges | (534) | (1104) | (4036) | (2206) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax (expense) benefit | 137 | 287 | 1034 | 574 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net reclassification adjustment for change in fair value of cash flow hedges | (397) | (817) | (3002) | (1632) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in fair value of cash flow hedges | 240 | $58 | 887 | $(1708) |
| &nbsp;&nbsp;&nbsp;Postretirement benefits: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustment of accumulated obligation for postretirement benefits | (1956) |  | (1956) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax (expense) benefit | 509 |  | 509 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net adjustment of accumulated obligation for postretirement benefits | (1447) |  | (1447) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive gain (loss), net of taxes | 3120 | (852) | 13504 | (8895) |
| Comprehensive income | 25146 | 15520 | 54630 | 22142 |

---

See accompanying notes to unaudited consolidated financial statements.

------

<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

 **BROOKLINE BANCORP, INC. AND SUBSIDIARIES**

**Unaudited Consolidated Statements of Changes in Stockholders' Equity**

**Three Months Ended June 30, 2025 and 2024** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Common<br>Stock** | **Additional<br>Paid-in<br>Capital** | **Retained<br>Earnings** | **Accumulated<br>Other<br>Comprehensive<br>Income (Loss)** | **Treasury<br>Stock** | **Total Stockholders'<br>Equity** |
| | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** |
| Balance at March 31, 2025 | $970 | $903696 | $465898 | $(42498) | $(87884) | $1240182 |
| Net income |  |  | 22026 |  |  | 22026 |
| Other comprehensive income (loss) |  |  |  | 3120 |  | 3120 |
| Common stock dividends of $0.135 per share |  |  | (12029) |  |  | (12029) |
| Restricted stock awards issued, net of awards surrendered |  | 15 |  |  | (15) |  |
| Compensation under recognition and retention plans |  | 986 | (114) |  |  | 872 |
| Balance at June 30, 2025 | $970 | $904697 | $475781 | $(39378) | $(87899) | $1254171 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Common<br>Stock** | **Additional<br>Paid-in<br>Capital** | **Retained<br>Earnings** | **Accumulated<br>Other<br>Comprehensive<br>Income (Loss)** | **Treasury<br>Stock** | **Total Stockholders'<br>Equity** |
| | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** |
| Balance at March 31, 2024 | $970 | $903726 | $441285 | $(60841) | $(90909) | $1194231 |
| Net income |  |  | 16372 |  |  | 16372 |
| Other comprehensive income (loss) |  |  |  | (852) |  | (852) |
| Common stock dividends of $0.135 per share |  |  | (12001) |  |  | (12001) |
| Restricted stock awards issued, net of awards surrendered |  | 223 |  |  | (223) |  |
| Compensation under recognition and retention plan |  | 826 | (96) |  |  | 730 |
| Balance at June 30, 2024 | $970 | $904775 | $445560 | $(61693) | $(91132) | $1198480 |

---

See accompanying notes to unaudited consolidated financial statements.

------

<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

**BROOKLINE BANCORP, INC. AND SUBSIDIARIES**

**Unaudited Consolidated Statements of Changes in Stockholders' Equity**

**Six Months Ended June 30, 2025 and 2024** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Common<br>Stock** | **Additional<br>Paid-in<br>Capital** | **Retained<br>Earnings** | **Accumulated<br>Other<br>Comprehensive<br>Income (Loss)** | **Treasury<br>Stock** | **Total Stockholders'<br>Equity** |
| | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** |
| Balance at December 31, 2024 | $970 | $902584 | $458943 | $(52882) | $(87676) | $1221939 |
| Net income |  |  | 41126 |  |  | 41126 |
| Other comprehensive income (loss) |  |  |  | 13504 |  | 13504 |
| Common stock dividends of $0.270 per share |  |  | (24058) |  |  | (24058) |
| Restricted stock awards issued, net of awards surrendered |  | 183 |  |  | (223) | (40) |
| Compensation under recognition and retention plans |  | 1930 | (230) |  |  | 1700 |
| Balance at June 30, 2025 | $970 | $904697 | $475781 | $(39378) | $(87899) | $1254171 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Common<br>Stock** | **Additional<br>Paid-in<br>Capital** | **Retained<br>Earnings** | **Accumulated<br>Other<br>Comprehensive<br> Income (Loss)** | **Treasury<br>Stock** | **Total Stockholders' <br>Equity** |
| | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** |
| Balance at December 31, 2023 | $970 | $902659 | $438722 | $(52798) | $(90909) | $1198644 |
| Net Income |  |  | 31037 |  |  | 31037 |
| Other comprehensive income (loss) |  |  |  | (8895) |  | (8895) |
| Common stock dividends of $0.270 per share |  |  | (24002) |  |  | (24002) |
| Restricted stock awards issued, net of awards surrendered |  | 223 |  |  | (223) |  |
| Compensation under recognition and retention plans |  | 1893 | (197) |  |  | 1696 |
| Balance at June 30, 2024 | $970 | $904775 | $445560 | $(61693) | $(91132) | $1198480 |

---

See accompanying notes to unaudited consolidated financial statements.

------

<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

**BROOKLINE BANCORP, INC. AND SUBSIDIARIES**

**Unaudited Consolidated Statements of Cash Flows**

---

| | | |
|:---|:---|:---|
| | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** |
| | **(In Thousands)** | **(In Thousands)** |
| Cash flows from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Net income | $41126 | $31037 |
| &nbsp;&nbsp;Adjustments to reconcile net income to net cash provided from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for credit losses | 12986 | 12947 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income tax benefit | (1552) | (327) |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation of premises and equipment | 3727 | 4076 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accretion of investment securities premiums and discounts, net | (2484) | (3121) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accretion of premiums and discounts and deferred loan and lease origination costs, net | (2969) | (3324) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of identified intangible assets | 2861 | 3377 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of debt issuance costs | 51 | 50 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization (accretion) of acquisition fair value adjustments, net | 305 | 760 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on sales of loans and leases held-for-sale | (288) | (130) |
| &nbsp;&nbsp;&nbsp;&nbsp;Write-down of other repossessed assets | 316 | 137 |
| &nbsp;&nbsp;&nbsp;&nbsp;Compensation under recognition and retention plans | 1700 | 1696 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash surrender value of bank-owned life insurance | (1031) | (989) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets | 47261 | (23964) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other liabilities | (60378) | 14881 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided from operating activities | 41631 | 37106 |
| Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from maturities, calls, and principal repayments of investment securities available-for-sale | 60710 | 94901 |
| &nbsp;&nbsp;&nbsp;Purchases of investment securities available-for-sale | (11737) | (41071) |
| &nbsp;&nbsp;&nbsp;Proceeds from redemption/sales of restricted equity securities | 24139 | 12093 |
| &nbsp;&nbsp;&nbsp;Purchase of restricted equity securities | (7465) | (13461) |
| &nbsp;&nbsp;&nbsp;Proceeds from sales of loans and leases held-for-investment, net | 51549 | 6908 |
| &nbsp;&nbsp;&nbsp;Net decrease (increase) in loans and leases | 135203 | (101228) |
| &nbsp;&nbsp;&nbsp;Purchase of premises and equipment, net | (972) | (2660) |
| &nbsp;&nbsp;&nbsp;Proceeds from sales of other repossessed assets | 194 | 641 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided from (used for) investing activities | 251621 | (43877) |
|  |  | (Continued) |

---

See accompanying notes to unaudited consolidated financial statements.

------

<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

---

| | | |
|:---|:---|:---|
| | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** |
| | **(In Thousands)** | **(In Thousands)** |
| Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Increase in demand checking, NOW, savings and money market accounts | 129904 | 3276 |
| &nbsp;&nbsp;&nbsp;(Decrease) increase in certificates of deposit and brokered deposits | (70570) | 185070 |
| &nbsp;&nbsp;&nbsp;Proceeds from FHLB advances | 546000 | 752100 |
| &nbsp;&nbsp;&nbsp;Repayment of FHLB advances | (967257) | (710363) |
| &nbsp;&nbsp;&nbsp;Increase in other borrowed funds, net | 56393 | 10869 |
| &nbsp;&nbsp;&nbsp;Decrease in mortgagors' escrow accounts, net | (586) | (122) |
| &nbsp;&nbsp;&nbsp;Payment of dividends on common stock | (24058) | (24002) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used for) provided from financing activities | (330174) | 216828 |
| Net (decrease) increase in cash and cash equivalents | (36922) | 210057 |
| Cash and cash equivalents at beginning of period | 543670 | 133027 |
| Cash and cash equivalents at end of period | $506748 | $343084 |
| Supplemental disclosure of cash flow information: |  |  |
| &nbsp;&nbsp;&nbsp;Cash paid during the period for: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest on deposits, borrowed funds and subordinated debt | $135390 | $141785 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes | 12731 | 7065 |
| &nbsp;&nbsp;&nbsp;Non-cash investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Transfer from loans to other repossessed assets | 695 | 1058 |

---

See accompanying notes to unaudited consolidated financial statements.

------

<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

**BROOKLINE BANCORP, INC. AND SUBSIDIARIES**

**Notes to Unaudited Consolidated Financial Statements**

**(1) Basis of Presentation**

***Overview***

The Company is a bank holding company (within the meaning of the Bank Holding Company Act of 1956, as amended) and the parent of Brookline Bank, a Massachusetts-chartered trust company; BankRI, a Rhode Island-chartered financial institution; and PCSB Bank, a New York-chartered commercial bank. The Banks are members of the Federal Reserve System. The Company is also the parent of Clarendon Private. The Company's primary business is to provide commercial, business and retail banking services to its corporate, municipal and retail customers through the Banks and its non-bank subsidiaries.

Brookline Bank, which includes its wholly-owned subsidiaries, Longwood Securities Corp., Eastern Funding and First Ipswich Insurance Agency, operates 28 full-service banking offices in the Greater Boston metropolitan area with three additional lending offices. BankRI, which includes its wholly-owned subsidiaries, Acorn Insurance Agency, BRI Realty Corp., BRI Investment Corp. and its wholly-owned subsidiary, BRI MSC Corp., operates 22 full-service banking offices in the greater Providence, Rhode Island area. PCSB Bank, which includes its wholly-owned subsidiary, UpCounty Realty Corp., operates 14 full-service banking offices in the Lower Hudson Valley of New York. Clarendon Private is a registered investment advisor with the SEC. Through Clarendon Private, the Company offers a wide range of wealth management services to individuals, families, endowments and foundations to help these clients meet their long-term financial goals.

The Banks' activities include acceptance of commercial, municipal and retail deposits, origination of mortgage loans on commercial and residential real estate located principally in Central New England and the Lower Hudson Valley of New York State, origination of commercial loans and leases to small- and mid-sized businesses, investment in debt and equity securities, and the offering of cash management and wealth and investment advisory services. The Company also provides specialty equipment financing through its subsidiary Eastern Funding, which is based in New York City, New York, and Plainview, New York.

The Company and the Banks are supervised, examined and regulated by the FRB. As a Massachusetts-chartered trust company, Brookline Bank is subject to supervision, examination and regulation by the Massachusetts Division of Banks. As a Rhode Island-chartered financial institution, BankRI is subject to supervision, examination and regulation by the Banking Division of the Rhode Island Department of Business Regulation. As a New York chartered commercial bank, PCSB Bank is subject to supervision, examination and regulation by the New York State Department of Financial Services. Clarendon Private is also subject to regulation by the SEC.

The FDIC offers insurance coverage on all deposits up to $250,000 per depositor at each of the Banks. As FDIC-insured depository institutions, the Banks are also subject to supervision, examination and regulation by the FDIC.

***Basis of Financial Statement Presentation***

The unaudited consolidated financial statements of the Company presented herein have been prepared pursuant to the rules of the SEC for quarterly reports on Form 10-Q and do not include all of the information and note disclosures required by GAAP. In the opinion of management, all adjustments (consisting of normal recurring adjustments) and disclosures considered necessary for the fair presentation of the accompanying consolidated financial statements have been included. Interim results are not necessarily reflective of the results of the entire year. The accompanying unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Annual Report on Form 10-K for the fiscal year ended December 31, 2024.

The unaudited consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany transactions and balances are eliminated in consolidation.

In preparing these consolidated financial statements, management is required to make significant estimates and assumptions that affect the reported amounts of assets, liabilities, income, expenses and disclosure of contingent assets and liabilities. Actual results could differ from those estimates based upon changing conditions, including economic conditions and future events. Material estimates that are particularly susceptible to significant changes in the near-term include the determination of the ACL and the determination of fair market values of assets and liabilities.

The judgments used by management in applying these critical accounting policies may be affected by a further and prolonged deterioration in the economic environment, which may result in changes to future financial results. For example, subsequent evaluations of the loan and lease portfolio, in light of the factors then prevailing, may result in significant changes in

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<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

**BROOKLINE BANCORP, INC. AND SUBSIDIARIES**

**Notes to Unaudited Consolidated Financial Statements (Continued)**

the allowance for loan and lease losses in future periods, and the inability to collect outstanding principal may result in increased loan and lease losses.

***Reclassification***

Certain previously reported amounts have been reclassified to conform to the current year's presentation.

***Segment Reporting***

An operating segment is defined as a component of a business for which separate financial information is available that is evaluated regularly by the CODM in deciding how to allocate resources and evaluate performance.

The Company is a bank holding company operating through a single business segment, which derives interest income on loan and lease products the Company offers to customers. Substantially all of the Company's total revenues, pre-tax income, and assets is driven by the banking business. While revenue generating activities are aligned through our bank subsidiaries, expense activities, including funding costs, credit losses and operating expenses, are managed for the Company as a whole. As a result, detailed profitability for each subsidiary bank is not used by the CODM.

The Chairman and Chief Executive Officer of the Company acts as the Company's CODM. The CODM regularly reviews comprehensive financial information with the reported measures focused on net interest income and net income. This financial information reviewed is consistent with the information presented within the Company's financial statements.

The CODM uses the reported measures of net interest income and net income to assess performance by comparing to and monitoring against budget and prior year results. This information is used to manage resources to drive business and net earnings growth, including investment in key strategic priorities, as well as determine the Company's ability to return capital to shareholders.

**(2) Recent Accounting Pronouncements** 

In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures" which improves reportable segment disclosure requirements, particularly regarding a reportable segment's expenses. This update is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company adopted ASU 2023-07 as of January 1, 2024. The adoption did not have a material impact on the Company's consolidated financial statements and continues to operate as one reportable segment.

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<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

**BROOKLINE BANCORP, INC. AND SUBSIDIARIES**

**Notes to Unaudited Consolidated Financial Statements (Continued)**

**(3) Investment Securities**

The following tables set forth investment securities available-for-sale at the dates indicated:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **At June 30, 2025** | **At June 30, 2025** | **At June 30, 2025** | **At June 30, 2025** |
| | **Amortized<br>Cost** | **Gross<br>Unrealized<br>Gains** | **Gross<br>Unrealized<br>Losses** | **Estimated<br>Fair Value** |
| | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** |
| Investment securities available-for-sale: |  |  |  |  |
| &nbsp;&nbsp;GSE debentures | $191885 | $417 | $14617 | $177685 |
| &nbsp;&nbsp;&nbsp;GSE CMOs | 60498 | 35 | 6466 | 54067 |
| &nbsp;&nbsp;&nbsp;GSE MBSs | 155443 | 92 | 14348 | 141187 |
| &nbsp;&nbsp;&nbsp;Municipal obligations | 19229 | 27 | 310 | 18946 |
| &nbsp;&nbsp;&nbsp;Corporate debt obligations | 12205 | 308 | 287 | 12226 |
| &nbsp;&nbsp;&nbsp;U.S. Treasury bonds | 478139 | 1407 | 17473 | 462073 |
| &nbsp;&nbsp;&nbsp;Foreign government obligations | 500 |  |  | 500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investment securities available-for-sale | $917899 | $2286 | $53501 | $866684 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| | **Amortized<br>Cost** | **Gross<br>Unrealized<br>Gains** | **Gross<br>Unrealized<br>Losses** | **Estimated<br>Fair Value** |
| | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** |
| Investment securities available-for-sale: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;GSE debentures | $195099 | $225 | $19030 | $176294 |
| &nbsp;&nbsp;&nbsp;GSE CMOs | 62567 | 4 | 7028 | 55543 |
| &nbsp;&nbsp;&nbsp;GSE MBSs | 166843 | 63 | 18621 | 148285 |
| &nbsp;&nbsp;&nbsp;Municipal obligations | 20526 | 19 | 291 | 20254 |
| &nbsp;&nbsp;&nbsp;Corporate debt obligations | 12140 | 225 | 78 | 12287 |
| &nbsp;&nbsp;&nbsp;U.S. Treasury bonds | 506714 | 331 | 25173 | 481872 |
| &nbsp;&nbsp;&nbsp;Foreign government obligations | 500 |  | 1 | 499 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investment securities available-for-sale | $964389 | $867 | $70222 | $895034 |

---

As of June 30, 2025, the fair value of all investment securities available-for-sale was $866.7 million, with net unrealized losses of $51.2 million, compared to a fair value of $895.0 million and net unrealized losses of $69.4 million as of December 31, 2024. As of June 30, 2025, $594.9 million, or 68.6% of the portfolio, had gross unrealized losses of $53.5 million, compared to $705.3 million, or 78.8% of the portfolio, with gross unrealized losses of $70.2 million as of December 31, 2024.

As of June 30, 2025 and December 31, 2024, the Company did not classify any securities as held to maturity; all securities were held as available-for-sale.

***Investment Securities as Collateral***

As of June 30, 2025 and December 31, 2024, respectively, $769.0 million and $792.0 million of investment securities were pledged as collateral for repurchase agreements; municipal deposits; treasury, tax and loan deposits; swap agreements; FRB borrowings; and FHLB borrowings. The Banks had no outstanding FRB borrowings as of June 30, 2025 and December 31, 2024.

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<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

**BROOKLINE BANCORP, INC. AND SUBSIDIARIES**

**Notes to Unaudited Consolidated Financial Statements (Continued)**

***Allowance for Credit Losses-Available-for-Sale Securities***

For available-for-sale securities in an unrealized loss position, management first assesses whether (i) the Company intends to sell the security, or (ii) it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. If either criterion is met, any previously recognized allowances are charged-off and the security's amortized cost is written down to fair value through income. If neither criterion is met, the security is evaluated to determine whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency and any adverse conditions specifically related to the security, among other factors.

If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security is compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, an allowance for credit loss is recorded, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through the ACL is recognized in OCI. Adjustments to the allowance are reported as a component of credit loss expense. Available-for-sale securities are charged-off against the allowance or, in the absence of any allowance, written down through income when deemed uncollectible or when either of the aforementioned criteria regarding intent or requirement to sell is met. The Company has made the accounting policy election to exclude accrued interest receivable on available-for-sale securities from the estimate of credit losses. Accrued interest receivables associated with debt securities available-for-sale totaled $4.0 million as of June 30, 2025, compared to $4.1 million as of December 31, 2024.

A debt security is placed on nonaccrual status at the time any principal or interest payments become more than 90 days delinquent or if full collection of interest or principal becomes uncertain. Accrued interest for a debt security placed on nonaccrual is reversed against interest income. There were no debt securities on nonaccrual status and therefore there was no accrued interest related to debt securities reversed against interest income for the six months ended June 30, 2025 and 2024.

***Assessment for Available for Sale Securities for Impairment***

Investment securities as of June 30, 2025 and December 31, 2024 that have been in a continuous unrealized loss position for less than twelve months or twelve months or longer are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **At June 30, 2025** | **At June 30, 2025** | **At June 30, 2025** | **At June 30, 2025** | **At June 30, 2025** | **At June 30, 2025** |
| | **Less than<br>Twelve Months** | **Less than<br>Twelve Months** | **Twelve Months<br>or Longer** | **Twelve Months<br>or Longer** | **Total** | **Total** |
| | **Estimated<br>Fair Value** | **Unrealized<br>Losses** | **Estimated<br>Fair Value** | **Unrealized<br>Losses** | **Estimated<br>Fair Value** | **Unrealized<br>Losses** |
| | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** |
| Investment securities available-for-sale: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;GSE debentures | $— | $— | $126331 | $14617 | $126331 | $14617 |
| &nbsp;&nbsp;&nbsp;GSE CMOs |  |  | 48791 | 6466 | 48791 | 6466 |
| &nbsp;&nbsp;&nbsp;GSE MBSs | 3237 | 88 | 132244 | 14260 | 135481 | 14348 |
| &nbsp;&nbsp;&nbsp;Municipal obligations | 655 | 8 | 6888 | 302 | 7543 | 310 |
| &nbsp;&nbsp;&nbsp;Corporate debt obligations |  |  | 2364 | 287 | 2364 | 287 |
| &nbsp;&nbsp;&nbsp;U.S. Treasury bonds |  |  | 274404 | 17473 | 274404 | 17473 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Temporarily impaired investment securities available-for-sale | 3892 | 96 | 591022 | 53405 | 594914 | 53501 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total temporarily impaired investment securities | $3892 | $96 | $591022 | $53405 | $594914 | $53501 |

---

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<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

**BROOKLINE BANCORP, INC. AND SUBSIDIARIES**

**Notes to Unaudited Consolidated Financial Statements (Continued)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **At December 31, 2024** | **At December 31, 2024** | **At December 31, 2024** | **At December 31, 2024** | **At December 31, 2024** | **At December 31, 2024** |
| | **Less than<br>Twelve Months** | **Less than<br>Twelve Months** | **Twelve Months<br>or Longer** | **Twelve Months<br>or Longer** | **Total** | **Total** |
| | **Estimated<br>Fair Value** | **Unrealized<br>Losses** | **Estimated<br>Fair Value** | **Unrealized<br>Losses** | **Estimated<br>Fair Value** | **Unrealized<br>Losses** |
| | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** |
| Investment securities available-for-sale: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;GSE debentures | $30753 | $281 | $107750 | $18749 | $138503 | $19030 |
| &nbsp;&nbsp;&nbsp;GSE CMOs | 4664 | 107 | 50334 | 6921 | 54998 | 7028 |
| &nbsp;&nbsp;&nbsp;GSE MBSs | 11128 | 596 | 131481 | 18025 | 142609 | 18621 |
| &nbsp;&nbsp;&nbsp;Municipal obligations | 3616 | 74 | 3568 | 217 | 7184 | 291 |
| &nbsp;&nbsp;&nbsp;Corporate debt obligations |  |  | 2550 | 78 | 2550 | 78 |
| &nbsp;&nbsp;&nbsp;U.S. Treasury bonds | 67290 | 285 | 291641 | 24888 | 358931 | 25173 |
| &nbsp;&nbsp;&nbsp;Foreign government obligations |  |  | 499 | 1 | 499 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Temporarily impaired investment securities available-for-sale | 117451 | 1343 | 587823 | 68879 | 705274 | 70222 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total temporarily impaired investment securities | $117451 | $1343 | $587823 | $68879 | $705274 | $70222 |

---

The Company performs regular analyses of the investment securities available-for-sale portfolio to determine whether a decline in fair value indicates that an investment security is impaired. In making these impairment determinations, management considers, among other factors, projected future cash flows; credit subordination and the creditworthiness; capital adequacy and near-term prospects of the issuers.

Management also considers the Company's capital adequacy, interest-rate risk, liquidity and business plans in assessing whether it is more likely than not that the Company will sell or be required to sell the investment securities before recovery. If the Company determines that a security investment is impaired and that it is more likely than not that the Company will not sell or be required to sell the investment security before recovery of its amortized cost, the credit portion of the impairment loss is recognized in the Company's consolidated statement of income and the noncredit portion is recognized in accumulated other comprehensive income. The credit portion of the impairment represents the difference between the amortized cost and the present value of the expected future cash flows of the investment security. If the Company determines that a security is impaired and it is more likely than not that it will sell or be required to sell the investment security before recovery of its amortized cost, the entire difference between the amortized cost and the fair value of the security will be recognized in the Company's consolidated statement of income.

***Investment Securities Available-For-Sale Impairment Analysis***

The following discussion summarizes, by investment security type, the basis for evaluating if the applicable investment securities within the Company's available-for-sale portfolio were impaired as of June 30, 2025. The Company has determined it is more likely than not that the Company will not sell or be required to sell the investment securities before recovery of its amortized cost. The Company's ability and intent to hold these investment securities until recovery is supported by the Company's strong capital and liquidity positions as well as its historically low portfolio turnover. As such, management has determined that the investment securities are not impaired as of June 30, 2025. If market conditions for investment securities worsen or the creditworthiness of the underlying issuers deteriorates, it is possible that the Company may recognize additional impairment in future periods.

*U.S. Government-Sponsored Enterprises*

The Company invests in securities issued by GSEs, including GSE debentures, MBSs, and CMOs. GSE securities include obligations issued by the FNMA, the FHLMC, the GNMA, the FHLB and the Federal Farm Credit Bank. As of June 30, 2025, the Company held GNMA MBSs and CMOs, and SBA commercial loan asset-backed securities in its available-for-sale portfolio with an estimated fair value of $36.6 million compared to $36.9 million as of December 31, 2024.

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<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

**BROOKLINE BANCORP, INC. AND SUBSIDIARIES**

**Notes to Unaudited Consolidated Financial Statements (Continued)**

All securities are performing and backed by the implicit (FHLB/FNMA/FHLMC) or explicit (GNMA/SBA) guarantee of the U.S. Government. Therefore, despite unrealized losses in some of the securities within the portfolio, management has determined that the investment securities are not impaired. See discussion on the portfolio below.

As of June 30, 2025, the Company owned 32 GSE debentures with a total fair value of $177.7 million, and a net unrealized loss of $14.2 million. As of December 31, 2024, the Company held 34 GSE debentures with a total fair value of $176.3 million, with a net unrealized loss of $18.8 million. As of June 30, 2025, 20 of the 32 securities in this portfolio were in an unrealized loss position. As of December 31, 2024, 23 of the 34 securities in this portfolio were in an unrealized loss position. During the six months ended June 30, 2025 and 2024, the Company did not purchase any GSE debentures.

As of June 30, 2025, the Company owned 58 GSE CMOs with a total fair value of $54.1 million and a net unrealized loss of $6.4 million. As of December 31, 2024, the Company held 59 GSE CMOs with a total fair value of $55.5 million with a net unrealized loss of $7.0 million. As of June 30, 2025, 54 of the 58 securities in this portfolio were in an unrealized loss position. As of December 31, 2024, 57 of the 59 securities in this portfolio were in an unrealized loss position. During the six months ended June 30, 2025 and 2024, the Company did not purchase any GSE CMOs.

As of June 30, 2025, the Company owned 140 GSE MBSs with a total fair value of $141.2 million and a net unrealized loss of $14.3 million. As of December 31, 2024, the Company held 141 GSE MBSs with a total fair value of $148.3 million with a net unrealized loss of $18.6 million. As of June 30, 2025, 90 of the 140 securities in this portfolio were in an unrealized loss position. As of December 31, 2024, 92 of the 141 securities in this portfolio were in an unrealized loss position. During the six months ended June 30, 2025 and 2024 the Company did not purchase any GSE MBSs.

*Municipal Obligations*

The Company invests in certain state and municipal securities with high credit ratings for portfolio diversification and tax planning purposes. Full collection of the obligations is expected because the financial conditions of the issuing municipalities are sound, they have not defaulted on scheduled payments, the obligations are rated investment grade, and the Company has the ability and intent to hold the obligations for a period of time to recover the amortized cost. As of June 30, 2025, the Company owned 39 municipal obligation securities with a total fair value of $18.9 million and a net unrealized loss of $0.3 million. As of December 31, 2024, the Company owned 39 municipal obligation securities with a total fair value of $20.3 million and a net unrealized loss of $0.3 million. As of June 30, 2025, 20 of the 39 securities in this portfolio were in an unrealized loss position. As of December 31, 2024, 13 of the 39 securities in this portfolio were in an unrealized loss position. During the six months ended June 30, 2025, the Company purchased $1.3 million of municipal securities compared to the same period in 2024 when the Company purchased $2.5 million of municipal securities.

*Corporate Obligations*

The Company may invest in high-quality corporate obligations to provide portfolio diversification and improve the overall yield on the portfolio. As of June 30, 2025, the Company held 4 corporate obligation securities with a total fair value of $12.2 million, which approximated cost. As of December 31, 2024, the Company held 4 corporate obligation securities with a total fair value of $12.3 million and a net unrealized gain of $0.1 million. As of June 30, 2025, 1 of the 4 securities in this portfolio were in an unrealized loss position. As of December 31, 2024, 1 of the 4 securities in this portfolio were in an unrealized loss position. During the six months ended June 30, 2025 and 2024, the Company did not purchase any corporate obligations.

*U.S. Treasury Bonds* 

The Company invests in securities issued by the U.S. government. As of June 30, 2025, the Company owned 61 U.S. Treasury bonds with a total fair value of $462.1 million and a net unrealized loss of $16.1 million. As of December 31, 2024, the Company held 65 U.S. Treasury bonds with a total fair value of $481.9 million and a net unrealized loss of $24.8 million. As of June 30, 2025, 37 of the 61 securities in this portfolio were in an unrealized loss position. As of December 31, 2024, 50 of the 65 securities in this portfolio were in an unrealized loss position. During the six months ended June 30, 2025, the Company purchased $9.9 million of of U.S. Treasury bonds, compared to the same period in 2024 when the Company purchased $38.6 million U.S. Treasury bonds.

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<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

**BROOKLINE BANCORP, INC. AND SUBSIDIARIES**

**Notes to Unaudited Consolidated Financial Statements (Continued)**

*Foreign Government Obligations*

As of June 30, 2025 and December 31, 2024, the Company owned 1 foreign government obligation security with a fair value of $0.5 million, which approximated cost. As of June 30, 2025, the security was held at par. As of December 31, 2024, the security was in an unrealized loss position. During the six months ended June 30, 2025, the Company repurchased the same type of foreign government obligation that had matured.

***Portfolio Maturities***

The final stated maturities of the debt securities are as follows for the periods indicated:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **At June 30, 2025** | **At June 30, 2025** | **At June 30, 2025** | **At December 31, 2024** | **At December 31, 2024** | **At December 31, 2024** |
| | **Amortized<br>Cost** | **Estimated<br>Fair Value** | **Weighted<br>Average<br>Rate** | **Amortized<br>Cost** | **Estimated<br>Fair Value** | **Weighted<br>Average<br>Rate** |
| | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** |
| Investment securities available-for-sale: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Within 1 year | $162929 | $162170 | 3.23% | $103337 | $102457 | 3.22% |
| &nbsp;&nbsp;&nbsp;After 1 year through 5 years | 430637 | 415834 | 3.03% | 449289 | 434608 | 3.32% |
| &nbsp;&nbsp;&nbsp;After 5 years through 10 years | 160283 | 144229 | 1.86% | 207980 | 180370 | 1.77% |
| &nbsp;&nbsp;&nbsp;Over 10 years | 164050 | 144451 | 3.31% | 203783 | 177599 | 3.13% |
|  | $917899 | $866684 | 2.92% | $964389 | $895034 | 2.96% |

---

Actual maturities of debt securities will differ from those presented above since certain obligations amortize and may also provide the issuer the right to call or prepay the obligation prior to scheduled maturity without penalty. MBSs and CMOs are included above based on their final stated maturities; the actual maturities, however, may occur earlier due to anticipated prepayments and stated amortization of cash flows.

As of June 30, 2025, issuers of debt securities with an estimated fair value of $112.6 million had the right to call or prepay the obligations. Of the $112.6 million, approximately $14.7 million matures in less then 1 year, $61.5 million matures in 1-5 years, $28.7 million matures in 6-10 years, and $7.7 million matures after ten years. As of December 31, 2024, issuers of debt securities with an estimated fair value of approximately $118.6 million had the right to call or prepay the obligations. Of the $118.6 million, approximately $4.8 million matures in less then 1 year, $67.4 million matures in 1-5 years, $38.9 million matures in 6-10 years, and $7.5 million matures after ten years.

***Security Sales***

The Company did not sell any investment securities available-for-sale during the six months ended June 30, 2025 and 2024.

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<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

**BROOKLINE BANCORP, INC. AND SUBSIDIARIES**

**Notes to Unaudited Consolidated Financial Statements (Continued)**

**(4) Loans and Leases**

The following table presents the amortized cost of loans and leases and weighted average coupon rates for the loan and lease portfolios at the dates indicated:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **At June 30, 2025** | **At June 30, 2025** | **At December 31, 2024** | **At December 31, 2024** |
| | **Balance** | **Weighted<br>Average<br>Coupon** | **Balance** | **Weighted<br>Average<br>Coupon** |
| | **(Dollars In Thousands)** | **(Dollars In Thousands)** | **(Dollars In Thousands)** | **(Dollars In Thousands)** |
| Commercial real estate loans: |  |  |  |  |
| Commercial real estate | $3913672 | 5.44% | $4027265 | 5.40% |
| Multi-family mortgage | 1401262 | 5.18% | 1387796 | 5.06% |
| Construction | 170612 | 7.21% | 301053 | 7.00% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total commercial real estate loans | 5485546 | 5.43% | 5716114 | 5.40% |
| Commercial loans and leases: |  |  |  |  |
| Commercial  | 1303516 | 6.38% | 1211714 | 6.47% |
| Equipment financing | 1216831 | 8.44% | 1294950 | 8.27% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total commercial loans and leases | 2520347 | 7.37% | 2506664 | 7.40% |
| Consumer loans: |  |  |  |  |
| Residential mortgage | 1115504 | 4.78% | 1114732 | 4.69% |
| Home equity | 397479 | 7.16% | 377411 | 7.18% |
| Other consumer | 63498 | 6.64% | 64367 | 6.67% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total consumer loans | 1576481 | 5.45% | 1556510 | 5.38% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total loans and leases | $9582374 | 5.94% | $9779288 | 5.91% |

---

Accrued interest on loans and leases, which were excluded from the amortized cost of loans and leases totaled $37.3 million and $37.5 million at June 30, 2025 and December 31, 2024, respectively, and were included in other assets in the accompanying consolidated balance sheets.

The net unamortized deferred loan origination costs and premiums and discounts on acquired loans included in total loans and leases were $(14.8) million and $(19.6) million as of June 30, 2025 and December 31, 2024, respectively.

The Banks and their subsidiaries lend primarily in all New England states and New York, with the exception of the equipment financing portfolio, 20.4% of which is in the Greater New York and New Jersey metropolitan area and 79.6% of which is in other areas in the U.S. as of June 30, 2025.

**Loans and Leases Pledged as Collateral**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of June 30, 2025 and December 31, 2024, there were $3.8 billion and $3.6 billion respectively of loans and leases pledged as collateral for repurchase agreements; municipal deposits; treasury, tax and loan deposits; swap agreements; FRB borrowings; and FHLB borrowings. The Banks did not have any outstanding FRB borrowings as of June 30, 2025 and December 31, 2024.

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<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

**BROOKLINE BANCORP, INC. AND SUBSIDIARIES**

**Notes to Unaudited Consolidated Financial Statements (Continued)**

 **(5) Allowance for Credit Losses**

The following tables present the changes in the allowance for loan and lease losses in loans and leases by portfolio segment for the periods indicated:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** |
| | **Commercial<br>Real Estate** | **Commercial** | **Consumer** | **Total** |
| | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** |
| Balance at March 31, 2025 | $73999 | $43356 | $6790 | $124145 |
| &nbsp;&nbsp;&nbsp;Charge-offs | (3524) | (2067) | (10) | (5601) |
| &nbsp;&nbsp;&nbsp;Recoveries |  | 427 | 47 | 474 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision (credit) for loan and lease losses excluding unfunded commitments | 2640 | 4753 | 314 | 7707 |
| Balance at June 30, 2025 | $73115 | $46469 | $7141 | $126725 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** |
| | **Commercial<br>Real Estate** | **Commercial** | **Consumer** | **Total** |
| | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** |
| Balance at March 31, 2024 | $83475 | $30417 | $6232 | $120124 |
| &nbsp;&nbsp;&nbsp;Charge-offs | (3819) | (4998) | (6) | (8823) |
| &nbsp;&nbsp;&nbsp;Recoveries |  | 427 | 9 | 436 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision (credit) for loan and lease losses excluding unfunded commitments | 2496 | 7540 | (23) | 10013 |
| Balance at June 30, 2024 | $82152 | $33386 | $6212 | $121750 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** |
| | **Commercial<br>Real Estate** | **Commercial** | **Consumer** | **Total** |
| | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** |
| Balance at December 31, 2024 | $74171 | $44169 | $6743 | $125083 |
| &nbsp;&nbsp;&nbsp;Charge-offs | (3524) | (11136) | (14) | (14674) |
| &nbsp;&nbsp;&nbsp;Recoveries |  | 1849 | 101 | 1950 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision (credit) for loan and lease losses excluding unfunded commitments | 2468 | 11587 | 311 | 14366 |
| Balance at June 30, 2025 | $73115 | $46469 | $7141 | $126725 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** |
| | **Commercial<br>Real Estate** | **Commercial** | **Consumer** | **Total** |
| | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** |
| Balance at December 31, 2023 | $81410 | $29557 | $6555 | $117522 |
| &nbsp;&nbsp;&nbsp;Charge-offs | (4425) | (9769) | (19) | (14213) |
| &nbsp;&nbsp;&nbsp;Recoveries |  | 719 | 26 | 745 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision (credit) for loan and lease losses excluding unfunded commitments | 5167 | 12879 | (350) | 17696 |
| Balance at June 30, 2024 | $82152 | $33386 | $6212 | $121750 |

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&nbsp;&nbsp;&nbsp;&nbsp;

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<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

**BROOKLINE BANCORP, INC. AND SUBSIDIARIES**

**Notes to Unaudited Consolidated Financial Statements (Continued)**

The allowance for credit losses for unfunded credit commitments was $4.6 million, and $6.0 million at June 30, 2025 and December 31, 2024, respectively.

***Provision for Credit Losses***

The provision (credit) for credit losses are set forth below for the periods indicated:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** |
| Provision (credit) for loan and lease losses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Commercial real estate | $2640 | $2496 | $2468 | $5167 |
| &nbsp;&nbsp;&nbsp;Commercial | 4753 | 7540 | 11587 | 12879 |
| &nbsp;&nbsp;&nbsp;Consumer | 314 | (23) | 311 | (350) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total provision (credit) for loan and lease losses | 7707 | 10013 | 14366 | 17696 |
| Unfunded commitments | (710) | (4406) | (1395) | (4666) |
| Investment securities available-for-sale | 3 | (39) | 15 | (83) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total provision (credit) for credit losses | $7000 | $5568 | $12986 | $12947 |

---

***Allowance for Credit Losses Methodology***

Management has established a methodology to determine the adequacy of the ACL that assesses the risks and losses expected on the loan and lease portfolio and unfunded commitments. Additions to the ACL are made by charges to the provision for credit losses. Losses on loans and leases are charged off against the allowance when all or a portion of a loan or lease is considered uncollectible. Subsequent recoveries on loans previously charged off, if any, are credited to the allowance when realized.

To calculate the allowance for loans collectively evaluated, management uses models developed by a third party. CRE, C&I, and retail lifetime loss rate models calculate the expected losses over the life of the loan based on exposure at default loan attributes and reasonable, supportable economic forecasts. The exposure at default considers the current unpaid balance, prepayment assumptions and expected utilization assumptions. The expected loss estimates for two small commercial portfolios are based on historical loss rates.

Key assumptions used in the models include portfolio segmentation, prepayments, and the expected utilization of unfunded commitments, among others. The portfolios are segmented by loan level attributes such as loan type, loan size, date of origination, and delinquency status to create homogenous loan pools. Pool level metrics are calculated and loss rates are subsequently applied to the pools as the loans have like characteristics. Prepayment assumptions are embedded within the models and are based on the same data used for model development and incorporate adjustments for reasonable and supportable forecasts. Model development data and developmental time periods vary by model, but all use at least ten years of historical data and capture at least one recessionary period. Expected utilization is based on current utilization and a LEQ factor. LEQ varies by current utilization and provides a reasonable estimate of expected draws and borrower behavior. Assumptions and model inputs are reviewed in accordance with model monitoring practices and as information becomes available.

The ACL estimate incorporates reasonable and supportable forecasts of various macro-economic variables over the remaining life of loans and leases. The development of the reasonable and supportable forecast assume each macro-economic variable will revert to long-term expectations, with reversion characteristics unique to specific economic indicators and forecasts. Reversion towards long-term expectations generally begins two to three years from the forecast start date and largely completes within the first five years.

Management elected to use multiple economic forecasts in determining the reserve to account for economic uncertainty. The forecasts include various projections of gross domestic product, interest rates, property price indices, and employment measures. Scenario weighting and model parameters are reviewed for each calculation and updated to reflect facts and circumstances as of the financial statement date. The forecasts utilized at June 30, 2025 reflect the immediate and longer-term effects of a higher interest rate environment and inflationary conditions compared to recent history.

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<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

**BROOKLINE BANCORP, INC. AND SUBSIDIARIES**

**Notes to Unaudited Consolidated Financial Statements (Continued)**

As of June 30, 2025, management continued to apply qualitative adjustments to the CRE lifetime loss rate, C&I lifetime loss rate, and Retail lifetime loss rate models. These adjustments addressed model limitations, were based on historical loss patterns, and targeted specific risks within the certain portfolios. A general qualitative adjustment was applied to all models to account for general economic uncertainty by placing a greater probability on negative economic forecasts. Additional qualitative factors were applied to capture specific risks in several sub-segments of the portfolio determined to have potential incremental risk relative to the model's results (e.g., office and specialty vehicle) based on recent collateral valuations and performance trends. These adjustments included both positive and negative adjustments and were applied to five different sub-segments with a total impact of $27.0 million at June 30, 2025. Management reviews these factors on a quarterly basis as market conditions and segment performance evolve.

Specific reserves are established for loans individually evaluated for impairment when amortized cost basis is greater than the discounted present value of expected future cash flows or, in the case of collateral-dependent loans, when there is an excess of a loan's amortized cost basis over the fair value of its underlying collateral. When loans and leases do not share risk characteristics with other financial assets they are evaluated individually. Individually evaluated loans are reviewed quarterly with adjustments made to the calculated reserve as necessary.

The general allowance for loan and lease losses was $105.0 million as of June 30, 2025 and $107.5 million as of December 31, 2024.

The specific allowance for loan and lease losses was $21.7 million as of June 30, 2025, compared to $17.5 million as of December 31, 2024. The specific allowance increased $4.2 million during the six months ended June 30, 2025, primarily due to specific reserve increases totaling $3.7 million for equipment financing loans, $0.3 million for consumer and industrial loans, and $0.2 million for commercial real estate loans.

As of June 30, 2025, management believes the methodology for calculating the allowance is sound and the allowance provides a reasonable basis for determining and reporting on expected losses over the lifetime of the Company's loan portfolios.

***Credit Quality Assessment***

At the time of loan origination, a rating is assigned based on the capacity to pay and general financial strength of the borrower, the value of assets pledged as collateral, and the evaluation of third party support such as a guarantor. The Company continually monitors the credit quality of the loan portfolio using all available information. The officer responsible for handling each loan is required to initiate changes to risk ratings when changes in facts and circumstances occur that warrant an upgrade or downgrade in a loan rating. Based on this information, loans demonstrating certain payment issues or other weaknesses may be categorized as delinquent, adversely risk-rated, nonperforming and/or put on nonaccrual status. Additionally, in the course of resolving such loans, the Company may choose to restructure the contractual terms of certain loans to match the borrower's ability to repay the loan based on their current financial condition. If a restructured loan meets certain criteria, it may be categorized as a modified loan.

The Company reviews numerous credit quality indicators when assessing the risk in its loan portfolio. For all loans, the Company utilizes an eight-grade loan rating system, which assigns a risk rating to each borrower based on a number of quantitative and qualitative factors associated with a loan transaction. Factors considered include industry and market conditions; position within the industry; earnings trends; operating cash flow; asset/liability values; debt capacity; guarantor strength; management and controls; financial reporting; collateral; and other considerations. In addition, the Company's independent loan review group evaluates the credit quality and related risk ratings in all loan portfolios. The results of these reviews are reported to the Risk Committee of the Board of Directors on a periodic basis and annually to the Board of Directors. For the consumer loans, the Company heavily relies on payment status for calibrating credit risk.

The ratings categories used for assessing credit risk in the commercial real estate, multi-family mortgage, construction, commercial, equipment financing, condominium association and other consumer loan and lease classes are defined as follows:

*1 -4 Rating—Pass*

Loan rating grades "1" through "4" are classified as "Pass," which indicates borrowers are performing in accordance with the terms of the loan and are less likely to result in loss due to the capacity of the borrower to pay and the adequacy of the value of assets pledged as collateral.

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<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

**BROOKLINE BANCORP, INC. AND SUBSIDIARIES**

**Notes to Unaudited Consolidated Financial Statements (Continued)**

*5 Rating—OAEM*

Borrowers exhibit potential credit weaknesses or downward trends deserving management's attention. If not checked or corrected, these trends will weaken the Company's asset and position. While potentially weak, currently these borrowers are marginally acceptable; no loss of principal or interest is envisioned.

*6 Rating—Substandard*

Borrowers exhibit well defined weaknesses that jeopardize the orderly liquidation of debt. Substandard loans may be inadequately protected by the current net worth and paying capacity of the obligors or by the collateral pledged, if any. Normal repayment from the borrower is in jeopardy. Although no immediate loss of principal is envisioned, there is a distinct possibility that a partial loss of interest and/or principal will occur if the deficiencies are not corrected. Collateral coverage may be inadequate to cover the principal obligation.

*7 Rating—Doubtful*

Borrowers exhibit well-defined weaknesses that jeopardize the orderly liquidation of debt with the added provision that the weaknesses make collection of the debt in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Serious problems exist to the point where partial loss of principal is likely.

*8 Rating—Definite Loss*

Borrowers deemed incapable of repayment. Loans to such borrowers are considered uncollectible and of such little value that continuation as active assets of the Company is not warranted.

Assets rated as "OAEM," "substandard" or "doubtful" based on criteria established under banking regulations are collectively referred to as "criticized" assets.

***Credit Quality Information***

The following table presents the amortized cost basis of loans in each class by credit quality indicator and year of origination as of June 30, 2025.

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
| | **2025** | **2024** | **2023** | **2022** | **2021** | **Prior** | **Revolving Loans** | **Revolving Loans Converted to Term Loans** | **Total** |
| | | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** |
| **Commercial Real Estate** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Pass | $87050 | $173139 | $295852 | $728866 | $704182 | $1683058 | $28249 | $16516 | $3716912 |
| &nbsp;&nbsp;&nbsp;OAEM |  |  |  | 21743 | 21950 | 22785 |  | 2253 | 68731 |
| &nbsp;&nbsp;&nbsp;Substandard |  | 22503 | 3397 | 38786 | 7323 | 56020 |  |  | 128029 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 87050 | 195642 | 299249 | 789395 | 733455 | 1761863 | 28249 | 18769 | 3913672 |
| **Current-period gross writeoffs** |  |  |  |  |  | 1467 |  |  | 1467 |
| **Multi-Family Mortgage** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Pass | 10889 | 13240 | 103875 | 299679 | 254876 | 640381 | 6744 | 37929 | 1367613 |
| &nbsp;&nbsp;&nbsp;OAEM |  |  |  | 10969 |  |  |  |  | 10969 |
| &nbsp;&nbsp;&nbsp;Substandard |  |  |  | 2863 | 11433 | 8384 |  |  | 22680 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 10889 | 13240 | 103875 | 313511 | 266309 | 648765 | 6744 | 37929 | 1401262 |

---

------

<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

**BROOKLINE BANCORP, INC. AND SUBSIDIARIES**

**Notes to Unaudited Consolidated Financial Statements (Continued)**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
| | **2025** | **2024** | **2023** | **2022** | **2021** | **Prior** | **Revolving Loans** | **Revolving Loans Converted to Term Loans** | **Total** |
| | | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** |
| **Current-period gross writeoffs** |  |  |  |  |  | 2057 |  |  | 2057 |
| **Construction** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Pass | 6688 | 49992 | 63485 | 2351 | 18757 | 3114 | 3475 |  | 147862 |
| &nbsp;&nbsp;&nbsp;OAEM |  |  |  | 22750 |  |  |  |  | 22750 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 6688 | 49992 | 63485 | 25101 | 18757 | 3114 | 3475 |  | 170612 |
| **Commercial** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Pass | 78811 | 174096 | 244218 | 124451 | 105483 | 104780 | 440246 | 5705 | 1277790 |
| &nbsp;&nbsp;&nbsp;OAEM |  |  | 63 |  | 62 | 164 | 5391 |  | 5680 |
| &nbsp;&nbsp;&nbsp;Substandard |  | 441 | 991 | 6840 | 409 | 1099 | 10065 | 181 | 20026 |
| &nbsp;&nbsp;&nbsp;Doubtful |  |  | 4 |  |  | 2 |  | 14 | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 78811 | 174537 | 245276 | 131291 | 105954 | 106045 | 455702 | 5900 | 1303516 |
| **Current-period gross writeoffs** |  |  |  |  |  | 7155 |  |  | 7155 |
| **Equipment Financing** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Pass | 99989 | 270549 | 306697 | 240160 | 117649 | 125904 | 1475 | 4651 | 1167074 |
| &nbsp;&nbsp;&nbsp;OAEM |  |  |  | 1289 | 759 |  |  |  | 2048 |
| &nbsp;&nbsp;&nbsp;Substandard |  | 2350 | 15508 | 6216 | 3112 | 4692 |  | 11530 | 43408 |
| &nbsp;&nbsp;&nbsp;Doubtful |  |  |  | 4283 |  | 18 |  |  | 4301 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 99989 | 272899 | 322205 | 251948 | 121520 | 130614 | 1475 | 16181 | 1216831 |
| **Current-period gross writeoffs** |  | 461 | 1012 | 1233 | 345 | 931 |  |  | 3982 |
| **Other Consumer** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Pass | 460 | 251 | 125 | 52 | 6 | 2057 | 60529 | 18 | 63498 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 460 | 251 | 125 | 52 | 6 | 2057 | 60529 | 18 | 63498 |
| **Current-period gross writeoffs** | 6 |  | 1 |  |  | 6 |  |  | 13 |
| **Total** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Pass | 283887 | 681267 | 1014252 | 1395559 | 1200953 | 2559294 | 540718 | 64819 | 7740749 |
| &nbsp;&nbsp;&nbsp;OAEM |  |  | 63 | 56751 | 22771 | 22949 | 5391 | 2253 | 110178 |
| &nbsp;&nbsp;&nbsp;Substandard |  | 25294 | 19896 | 54705 | 22277 | 70195 | 10065 | 11711 | 214143 |
| &nbsp;&nbsp;&nbsp;Doubtful |  |  | 4 | 4283 |  | 20 |  | 14 | 4321 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $283887 | $706561 | $1034215 | $1511298 | $1246001 | $2652458 | $556174 | $78797 | $8069391 |

---

As of June 30, 2025, there were no loans categorized as definite loss.

For residential mortgage and home equity loans, the borrowers' credit scores at origination contribute as a reserve metric in the retail loss rate model.

------

<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

**BROOKLINE BANCORP, INC. AND SUBSIDIARIES**

**Notes to Unaudited Consolidated Financial Statements (Continued)**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **At June 30, 2025** | **At June 30, 2025** | **At June 30, 2025** | **At June 30, 2025** | **At June 30, 2025** | **At June 30, 2025** | **At June 30, 2025** | **At June 30, 2025** | **At June 30, 2025** |
| | **2025** | **2024** | **2023** | **2022** | **2021** | **Prior** | **Revolving Loans** | **Revolving Loans Converted to Term Loans** | **Total** |
| | | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** |
| **Residential** |  |  |  |  |  |  |  |  |  |
| Credit Scores |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Over 700 | $50709 | $111352 | $70641 | $150896 | $188390 | $388170 | $4900 | $92 | $965150 |
| &nbsp;&nbsp;&nbsp;661 - 700 | 3009 | 4460 | 5036 | 12545 | 10307 | 25836 |  | 8 | 61201 |
| &nbsp;&nbsp;&nbsp;600 and below | 115 | 2055 | 4530 | 8785 | 8767 | 30612 |  |  | 54864 |
| &nbsp;&nbsp;Data not available<sup>\*</sup> | 9712 | 354 | 1522 | 1649 | 2254 | 18798 |  |  | 34289 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $63545 | $118221 | $81729 | $173875 | $209718 | $463416 | $4900 | $100 | $1115504 |
| **Home Equity** |  |  |  |  |  |  |  |  |  |
| Credit Scores |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Over 700 | $1682 | $1572 | $4144 | $3254 | $931 | $6380 | $323307 | $2897 | $344167 |
| &nbsp;&nbsp;&nbsp;661 - 700 | 56 | 26 | 35 | 144 | 37 | 406 | 26466 | 1415 | 28585 |
| &nbsp;&nbsp;&nbsp;600 and below |  | 92 | 676 | 67 | 400 | 405 | 18260 | 2246 | 22146 |
| &nbsp;&nbsp;Data not available<sup>\*</sup> | 2 |  | 15 |  |  | 36 | 2528 |  | 2581 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $1740 | $1690 | $4870 | $3465 | $1368 | $7227 | $370561 | $6558 | $397479 |

---

_______________________________________________________________________________

\* Primarily represents loans made to trusts and purchased mortgages.

The following tables present the recorded investment in loans in each class as of December 31, 2024, by credit quality indicator.

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| | **2024** | **2023** | **2022** | **2021** | **2020** | **Prior** | **Revolving Loans** | **Revolving Loans Converted to Term Loans** | **Total** |
| | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** |
| **Commercial Real Estate** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Pass | $147877 | $395770 | $677054 | $740805 | $368755 | $1493198 | $45933 | $16620 | $3886012 |
| &nbsp;&nbsp;&nbsp;OAEM | 22505 |  | 21923 | 3611 | 3210 | 41704 |  | 411 | 93364 |
| &nbsp;&nbsp;&nbsp;Substandard |  |  | 3653 | 5416 |  | 38820 |  |  | 47889 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 170382 | 395770 | 702630 | 749832 | 371965 | 1573722 | 45933 | 17031 | 4027265 |
| **Current - period gross writeoffs** |  |  | 552 |  |  | 3874 |  |  | 4426 |
| **Multi-Family Mortgage** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Pass | 16197 | 67890 | 244419 | 243977 | 153294 | 572534 | 5937 | 38001 | 1342249 |
| &nbsp;&nbsp;&nbsp;OAEM |  |  | 11606 |  |  | 3855 |  |  | 15461 |
| &nbsp;&nbsp;&nbsp;Substandard |  |  | 2863 | 11477 |  | 15746 |  |  | 30086 |

---

------

<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

**BROOKLINE BANCORP, INC. AND SUBSIDIARIES**

**Notes to Unaudited Consolidated Financial Statements (Continued)**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| | **2024** | **2023** | **2022** | **2021** | **2020** | **Prior** | **Revolving Loans** | **Revolving Loans Converted to Term Loans** | **Total** |
| | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 16197 | 67890 | 258888 | 255454 | 153294 | 592135 | 5937 | 38001 | 1387796 |
| **Construction** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Pass | 50569 | 24642 | 169636 | 37832 | 1649 | 221 | 8754 |  | 293303 |
| &nbsp;&nbsp;&nbsp;OAEM |  |  | 7750 |  |  |  |  |  | 7750 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 50569 | 24642 | 177386 | 37832 | 1649 | 221 | 8754 |  | 301053 |
| **Commercial** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Pass | 171978 | 256267 | 138946 | 108892 | 35090 | 87430 | 383725 | 6962 | 1189290 |
| &nbsp;&nbsp;&nbsp;OAEM |  |  |  | 48 |  | 284 | 1711 |  | 2043 |
| &nbsp;&nbsp;&nbsp;Substandard |  | 4 |  | 392 | 1197 | 12001 | 6091 | 365 | 20050 |
| &nbsp;&nbsp;&nbsp;Doubtful |  |  |  |  |  | 2 |  | 329 | 331 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 171978 | 256271 | 138946 | 109332 | 36287 | 99717 | 391527 | 7656 | 1211714 |
| **Current-period gross writeoffs** | 13 | 4 | 3612 | 100 | 1523 | 1596 |  |  | 6848 |
| **Equipment Financing** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Pass | 287280 | 359803 | 289487 | 147244 | 83664 | 85286 | 425 | 5881 | 1259070 |
| &nbsp;&nbsp;&nbsp;OAEM |  |  | 1572 | 930 |  |  |  |  | 2502 |
| &nbsp;&nbsp;&nbsp;Substandard |  | 7681 | 3455 | 2918 | 725 | 2771 |  | 11530 | 29080 |
| &nbsp;&nbsp;&nbsp;Doubtful |  |  | 4283 |  |  | 15 |  |  | 4298 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 287280 | 367484 | 298797 | 151092 | 84389 | 88072 | 425 | 17411 | 1294950 |
| **Current-period gross writeoffs** | 840 | 2801 | 4740 | 1430 | 5219 | 4166 |  |  | 19196 |
| **Other Consumer** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Pass | 373 | 176 | 84 | 873 |  | 2057 | 60789 | 15 | 64367 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 373 | 176 | 84 | 873 |  | 2057 | 60789 | 15 | 64367 |
| **Current-period gross writeoffs** | 7 |  | 3 |  | 1 | 12 |  |  | 23 |
| **Total** |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Pass | 674274 | 1104548 | 1519626 | 1279623 | 642452 | 2240726 | 505563 | 67479 | 8034291 |
| &nbsp;&nbsp;&nbsp;OAEM | 22505 |  | 42851 | 4589 | 3210 | 45843 | 1711 | 411 | 121120 |
| &nbsp;&nbsp;&nbsp;Substandard |  | 7685 | 9971 | 20203 | 1922 | 69338 | 6091 | 11895 | 127105 |
| &nbsp;&nbsp;&nbsp;Doubtful |  |  | 4283 |  |  | 17 |  | 329 | 4629 |
| **Total** | $696779 | $1112233 | $1576731 | $1304415 | $647584 | $2355924 | $513365 | $80114 | $8287145 |

---

As of December 31, 2024, there were no loans categorized as definite loss.

------

<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

**BROOKLINE BANCORP, INC. AND SUBSIDIARIES**

**Notes to Unaudited Consolidated Financial Statements (Continued)**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **At December 31, 2024** | **At December 31, 2024** | **At December 31, 2024** | **At December 31, 2024** | **At December 31, 2024** | **At December 31, 2024** | **At December 31, 2024** | **At December 31, 2024** | **At December 31, 2024** |
| | **2024** | **2023** | **2022** | **2021** | **2020** | **Prior** | **Revolving Loans** | **Revolving Loans Converted to Term Loans** | **Total** |
| | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** |
| **Residential** |  |  |  |  |  |  |  |  |  |
| Credit Scores |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Over 700 | $119843 | $75397 | $167352 | $204738 | $110663 | $341746 | $7936 | $— | $1027675 |
| &nbsp;&nbsp;&nbsp;661 - 700 | 6444 | 7330 | &nbsp;&nbsp;&nbsp;&nbsp;7734 | 6915 | 4622 | 12583 |  |  | 45628 |
| &nbsp;&nbsp;&nbsp;600 and below | 2040 | 1111 | &nbsp;&nbsp;&nbsp;7711 | 4976 | 5016 | 13024 |  |  | 33878 |
| &nbsp;&nbsp;Data not available<sup>\*</sup> | 31 | 537 | &nbsp;&nbsp;&nbsp;1349 | 881 |  | 4753 |  |  | 7551 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $128358 | $84375 | $184146 | $217510 | $120301 | $372106 | $7936 | $— | $1114732 |
| **Home Equity** |  |  |  |  |  |  |  |  |  |
| Credit Scores |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Over 700 | $1696 | $4686 | $3492 | $1402 | $529 | $7003 | $316187 | $5446 | $340441 |
| &nbsp;&nbsp;&nbsp;661 - 700 | 166 | 400 | 21 | 38 |  | 326 | 18700 | 505 | 20156 |
| &nbsp;&nbsp;&nbsp;600 and below |  | 405 | 132 |  | 18 | 373 | 12121 | 1195 | 14244 |
| &nbsp;&nbsp;Data not available<sup>\*</sup> |  |  |  |  |  | 4 | 2566 |  | 2570 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $1862 | $5491 | $3645 | $1440 | $547 | $7706 | $349574 | $7146 | $377411 |
| **Current-period gross writeoffs** | $— | $— | 16 | $— | $— | $— | $— | $— | 16 |

---

_______________________________________________________________________________

\* Primarily represents loans made to trusts and purchased mortgages.

------

<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

**BROOKLINE BANCORP, INC. AND SUBSIDIARIES**

**Notes to Unaudited Consolidated Financial Statements (Continued)**

***Age Analysis of Past Due Loans and Leases***

The following table presents an age analysis of the amortized cost basis in loans and leases as of June 30, 2025.

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **At June 30, 2025** | **At June 30, 2025** | **At June 30, 2025** | **At June 30, 2025** | **At June 30, 2025** | **At June 30, 2025** | **At June 30, 2025** | **At June 30, 2025** | |
| | **Past Due** | **Past Due** | **Past Due** | **Past Due** | | | **Past<br>Due Greater<br>Than 90 Days<br>and Accruing** | | |
| | **31-60<br>Days** | **61-90<br>Days** | **Greater<br>Than<br>90 Days** | **Total** |<br>**Current** |<br>**Total Loans<br>and Leases** | **Past<br>Due Greater<br>Than 90 Days<br>and Accruing** |<br>**Non-accrual** |<br>**Non-accrual<br>with No Related Allowance** |
| | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | |
| Commercial real estate loans: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Commercial real estate | $2296 | $653 | $2187 | $5136 | $3908536 | $3913672 | $1854 | $987 | $841 |
| &nbsp;&nbsp;Multi-family mortgage |  |  | 15736 | 15736 | 1385526 | 1401262 | 14296 | 1433 | 1439 |
| &nbsp;&nbsp;&nbsp;Construction |  |  | 7750 | 7750 | 162862 | 170612 | 7750 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total commercial real estate loans | 2296 | 653 | 25673 | 28622 | 5456924 | 5485546 | 23900 | 2420 | 2280 |
| Commercial loans and leases: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Commercial | 466 | 418 | 9231 | 10115 | 1293401 | 1303516 | 831 | 8687 | 837 |
| &nbsp;&nbsp;&nbsp;Equipment financing | 6883 | 6913 | 38369 | 52165 | 1164666 | 1216831 | 165 | 46067 | 2672 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total commercial loans and leases | 7349 | 7331 | 47600 | 62280 | 2458067 | 2520347 | 996 | 54754 | 3509 |
| Consumer loans: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Residential mortgage | 1222 |  | 1643 | 2865 | 1112639 | 1115504 |  | 3572 | 2233 |
| &nbsp;&nbsp;&nbsp;Home equity | 1200 | 65 | 764 | 2029 | 395450 | 397479 | 3 | 1561 | 680 |
| &nbsp;&nbsp;&nbsp;Other consumer | 3 | 1 | 1 | 5 | 63493 | 63498 |  | 1 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total consumer loans | 2425 | 66 | 2408 | 4899 | 1571582 | 1576481 | 3 | 5134 | 2913 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total loans and leases | $12070 | $8050 | $75681 | $95801 | $9486573 | $9582374 | $24899 | $62308 | $8702 |

---

The Company did not recognize any interest income on nonaccrual loans for the three and six months ended June 30, 2025.

------

<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

**BROOKLINE BANCORP, INC. AND SUBSIDIARIES**

**Notes to Unaudited Consolidated Financial Statements (Continued)**

The following tables present an age analysis of the recorded investment in originated and acquired loans and leases as of December 31, 2024.

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **At December 31, 2024** | **At December 31, 2024** | **At December 31, 2024** | **At December 31, 2024** | **At December 31, 2024** | **At December 31, 2024** | **At December 31, 2024** | **At December 31, 2024** | |
| | **Past Due** | **Past Due** | **Past Due** | **Past Due** | | | **Loans and<br>Leases Past<br>Due Greater<br>Than 90 Days<br>and Accruing** | | **Non-accrual<br>with No Related Allowance** |
| | **31-60<br>Days** | **61-90<br>Days** | **Greater<br>Than<br>90 Days** | **Total** |<br>**Current** |<br>**Total Loans<br>and Leases** | **Loans and<br>Leases Past<br>Due Greater<br>Than 90 Days<br>and Accruing** |<br>**Non-accrual** | **Non-accrual<br>with No Related Allowance** |
| | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | |
| Commercial real estate loans: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Commercial real estate | $6570 | $1685 | $12153 | $20408 | $4006857 | $4027265 | $629 | $11525 | $683 |
| &nbsp;&nbsp;Multi-family mortgage | 2863 |  | 6469 | 9332 | 1378464 | 1387796 |  | 6596 | 6605 |
| &nbsp;&nbsp;&nbsp;Construction |  |  |  |  | 301053 | 301053 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total commercial real estate loans | 9433 | 1685 | 18622 | 29740 | 5686374 | 5716114 | 629 | 18121 | 7288 |
| Commercial loans and leases: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Commercial | 783 | 1693 | 695 | 3171 | 1208543 | 1211714 |  | 14676 | 326 |
| &nbsp;&nbsp;&nbsp;Equipment financing | 6140 | 2508 | 27070 | 35718 | 1259232 | 1294950 |  | 31509 | 2180 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total commercial loans and leases | 6923 | 4201 | 27765 | 38889 | 2467775 | 2506664 |  | 46185 | 2506 |
| Consumer loans: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Residential mortgage | 2015 |  | 2057 | 4072 | 1110660 | 1114732 | 130 | 3999 | 2359 |
| &nbsp;&nbsp;&nbsp;Home equity | 818 | 233 | 135 | 1186 | 376225 | 377411 | 52 | 1043 |  |
| &nbsp;&nbsp;&nbsp;Other consumer | 4 |  | 1 | 5 | 64362 | 64367 |  | 1 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total consumer loans | 2837 | 233 | 2193 | 5263 | 1551247 | 1556510 | 182 | 5043 | 2359 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total loans and leases | $19193 | $6119 | $48580 | $73892 | $9705396 | $9779288 | $811 | $69349 | $12153 |

---

***Individually Evaluated Loans and Leases***

Loans and leases which do not share similar risk characteristics with other loans are individually evaluated for credit losses. A loan is individually evaluated when, based on current information and events, it is probable that the Company will be unable to collect all amounts due (both interest and principal) according to the contractual terms of the loan agreement. The loans and leases risk-rated "substandard" or worse are individually evaluated. Specific reserves are established for loans and leases with deterioration in the present value of expected future cash flows or, in the case of collateral-dependent loans and leases, any increase in the loan or lease amortized cost basis over the fair value of the underlying collateral discounted for estimated selling costs. In contrast, the loans and leases which share similar risk characteristics and are not included in the individually evaluated population are collectively evaluated for credit losses.

------

<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

**BROOKLINE BANCORP, INC. AND SUBSIDIARIES**

**Notes to Unaudited Consolidated Financial Statements (Continued)**

The following tables present information regarding individually evaluated and collectively evaluated allowance for loan and lease losses for credit losses on loans and leases at the dates indicated.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **At June 30, 2025** | **At June 30, 2025** | **At June 30, 2025** | **At June 30, 2025** |
| | **Commercial Real Estate** | **Commercial** | **Consumer** | **Total** |
| | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** |
| **Allowance for Loan and Lease Losses:** | | | | |
| &nbsp;&nbsp;&nbsp;Individually evaluated | $3804 | $17892 | $13 | $21709 |
| &nbsp;&nbsp;&nbsp;Collectively evaluated | 69311 | 28577 | 7128 | 105016 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $73115 | $46469 | $7141 | $126725 |
| **Loans and Leases:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Individually evaluated | $150569 | $62504 | $3177 | $216250 |
| &nbsp;&nbsp;&nbsp;Collectively evaluated | 5334977 | 2457843 | 1573304 | 9366124 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $5485546 | $2520347 | $1576481 | $9582374 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **At December 31, 2024** | **At December 31, 2024** | **At December 31, 2024** | **At December 31, 2024** |
| | **Commercial Real Estate** | **Commercial** | **Consumer** | **Total** |
| | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** |
| **Allowance for Loan and Lease Losses:** | | | | |
| &nbsp;&nbsp;&nbsp;Individually evaluated | $3566 | $13967 | $13 | $17546 |
| &nbsp;&nbsp;&nbsp;Collectively evaluated | 70605 | 30202 | 6730 | 107537 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total loans and leases | $74171 | $44169 | $6743 | $125083 |
| **Loans and Leases:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Individually evaluated | $77983 | $47819 | $2626 | $128428 |
| &nbsp;&nbsp;&nbsp;Collectively evaluated | 5638131 | 2458845 | 1553884 | 9650860 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total loans and leases | $5716114 | $2506664 | $1556510 | $9779288 |

---

------

<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

**BROOKLINE BANCORP, INC. AND SUBSIDIARIES**

**Notes to Unaudited Consolidated Financial Statements (Continued)**

***Loan Modifications***

The following tables present the amortized cost basis of loan modifications made to borrowers experiencing financial difficulty during the periods indicated.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** |
| | **Number of Loans** | **Amortized Cost** | **% of Total Class of Loans and Leases** | **Financial Effect** |
| | | **(In thousands)** | | |
| Maturity Extension: |  |  |  |  |
| C&I | 2 | $446 | 0.02% | One loan was given a 12 month maturity extension to assist the borrower and another loan was given a 7 month maturity extension. The financial effect was deemed "de minimis". |
| Significant Payment Delays: |  |  |  |  |
| Commercial Real Estate | 1 | 3815 | 0.07% | This loan was given principal payments deferrals for 12 months. The financial effect was deemed "de minimis." |
| Combination - Maturity Extension and Interest Rate Reduction: |  |  |  |  |
| C&I | 2 | 364 | 0.01% | These loans were given 36 month extensions and reductions in their stated interest rates of 2.3%. |
| Total | 5 | $4625 |  |  |
|  | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** |
|  | **Number of Loans** | **Amortized Cost** | **% of Total Class of Loans and Leases** | **Financial Effect** |
|  |  | **(In thousands)** |  |  |
| Maturity Extension: |  |  |  |  |
| C&I | 1 | $104 | —% | This loan was given a 30-month maturity extensions to assist the borrower. The financial effect was deemed "de minimis." |
| Significant Payment Delays: |  |  |  |  |
| C&I | 12 | $13833 | 0.57% | These loans and letters of credit were given a two quarter (6 month) payment forbearance. The projected impact of the payment delay is approximately $0.1 million.  |

---

------

<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

**BROOKLINE BANCORP, INC. AND SUBSIDIARIES**

**Notes to Unaudited Consolidated Financial Statements (Continued)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| Combination - Maturity Extension and Significant Payment Delays: |  |  |  |  |
| C&I | 2 | $1615 | 0.07% | This loan was given 6 months maturity extensions and 6 months of interest-only payments. |
| Combination - Maturity Extension and Interest Rate Reduction: |  |  |  |  |
| C&I | 2 | $123 | 0.01% | These loans were given 21 and 25 month extensions, respectively, and reductions in their stated interest rates of 7.5%. |
| Total | 17 | $15675 | 0.65% |  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** |
| | **Number of Loans** | **Amortized Cost** | **% of Total Class of Loans and Leases** | **Financial Effect** |
| | | **(In thousands)** | | |
| Maturity Extension: |  |  |  |  |
| C&I | 4 | $1537 | 0.06% | Loans were given 15, 12, 7, and 3 month maturity extensions to assist the borrowers. The financial effect was deemed "de minimis". |
| Significant Payment Delays: |  |  |  |  |
| CRE | 1 | 3815 | 0.07% | This loan was given principal payments deferrals for 12 months. The financial effect was deemed "de minimis." |
| Combination - Maturity Extension and Interest Rate Reduction: |  |  |  |  |
| C&I | 2 | $364 | 0.01% | These loans were given 36 month extensions, and reductions in their stated interest rates of 2.3%. The financial effect was deemed "de minimis." |
| Total | 7 | $5716 |  |  |

---

------

<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

**BROOKLINE BANCORP, INC. AND SUBSIDIARIES**

**Notes to Unaudited Consolidated Financial Statements (Continued)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** |
| | **Number of Loans** | **Amortized Cost** | **% of Total Class of Loans and Leases** | **Financial Effect** |
| | | **(In thousands)** | | |
| Maturity Extension: |  |  |  |  |
| C&I | 2 | $131 | 0.01% | One loan was given 30 month maturity extension to assist the borrower and the other loan was given a 2 month deferment of payments along with 13 months added to the term of the loan. The financial effect was deemed "de minimis". |
| Significant Payment Delays: |  |  |  |  |
| C&I | 12 | 13833 | 0.57% | These loans and letters of credit were given a two quarter (6 month) payment forbearance. The projected impact of the payment delay is approximately $0.1 million. |
| Combination - Maturity Extension and Significant Payment Delays: |  |  |  |  |
| C&I | 2 | 1615 | 0.07% | This loan was given 6 months maturity extensions and 6 months of interest-only payment. |
| Combination - Maturity Extension and Interest Rate Reduction: |  |  |  |  |
| C&I | 2 | 123 | 0.01% | These loans were given 21 and 25 month extensions, respectively, and reductions in their stated interest rates of 7.5%. |
| Total | 18 | $15702 | 0.66% |  |

---

------

<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

**BROOKLINE BANCORP, INC. AND SUBSIDIARIES**

**Notes to Unaudited Consolidated Financial Statements (Continued)**

The following tables present the aging analysis of loan modifications made to borrowers experiencing financial difficulty during the periods indicated.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** |
| | **Current** | **30-60 Days Past Due** | **61-90 Days Past Due** | **90+ Days Past Due** | **Modified** |
| | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Total Modifications | $4511 | 130 |  |  |  |
|  | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** |
|  | **Current** | **30-60 Days Past Due** | **61-90 Days Past Due** | **90+ Days Past Due** | **Modified** |
|  | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Total Modifications | $14321 | $1353 | $— | $— | $— |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** |
| | **Current** | **30-60 Days Past Due** | **61-90 Days Past Due** | **90+ Days Past Due** | **Modified** |
| | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Total Modifications | $4766 | 130 |  | 837 |  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** |
| | **Current** | **30-60 Days Past Due** | **61-90 Days Past Due** | **90+ Days Past Due** | **Modified** |
| | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| Total Modifications | $14349 | $1353 | $— | $— | $— |

---

**(6) Goodwill and Other Intangible Assets** 

The following table sets forth the carrying value of goodwill and other intangible assets at the dates indicated:

---

| | | |
|:---|:---|:---|
| | **At June 30, 2025** | **At December 31, 2024** |
| | **(In Thousands)** | **(In Thousands)** |
| Goodwill | $241222 | $241222 |
| Additions |  |  |
| Balance at end of period | 241222 | 241222 |
| Other intangible assets, net accumulated amortization: |  |  |
| &nbsp;&nbsp;&nbsp;Core deposits | 13511 | 16372 |
| &nbsp;&nbsp;&nbsp;Trade name | 1089 | 1089 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other intangible assets | 14600 | 17461 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total goodwill and other intangible assets | $255822 | $258683 |

---

------

<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

**BROOKLINE BANCORP, INC. AND SUBSIDIARIES**

**Notes to Unaudited Consolidated Financial Statements (Continued)**

At December 31, 2013, the Company concluded that the BankRI name would continue to be utilized in its marketing strategies; therefore, the trade name with carrying value of $1.1 million has an indefinite life and ceased to amortize.

The weighted-average amortization period for the core deposit intangible is 4.5 years.

The estimated aggregate future amortization expense (in thousands) for other intangible assets for each of the next five years and thereafter is as follows:

---

| | |
|:---|:---|
| Remainder of 2025 | $2701 |
| Year ending: |  |
| &nbsp;&nbsp;&nbsp;2026 | 4324 |
| &nbsp;&nbsp;&nbsp;2027 | 3243 |
| &nbsp;&nbsp;&nbsp;2028 | 2162 |
| &nbsp;&nbsp;&nbsp;2029 | 1081 |
| &nbsp;&nbsp;&nbsp;2030 |  |
| &nbsp;&nbsp;&nbsp;Thereafter |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $13511 |

---

**(7) Accumulated Other Comprehensive Income (Loss)**

For the three and six months ended June 30, 2025 and 2024, the Company's accumulated OCI (loss) includes the following three components: (i) unrealized holding gains (losses) on investment securities available-for-sale; (ii) change in the fair value of cash flow hedges; and (iii) adjustment of accumulated obligation for postretirement benefits.

Changes in accumulated OCI (loss) by component, net of tax, were as follows for the periods indicated:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** |
| | **Investment**<br>**Securities**<br> **Available-for-Sale** | **Net Change in Fair Value of Cash Flow Hedges** | **Postretirement<br>Benefits** | **Accumulated Other<br>Comprehensive<br>Income (Loss)** |
| | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** |
| Balance at March 31, 2025 | $(43981) | $(676) | $2159 | $(42498) |
| Other comprehensive income (loss) | 4327 | (157) | (1956) | 2214 |
| Reclassification adjustment for (income) expense recognized in earnings |  | 397 | 509 | 906 |
| Balance at June 30, 2025 | $(39654) | $(436) | $712 | $(39378) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** |
| | **Investment**<br>**Securities**<br> **Available-for-Sale** | **Net Change in Fair Value of Cash Flow Hedges** | **Postretirement<br>Benefits** | **Accumulated Other<br>Comprehensive<br>Income (Loss)** |
| | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** |
| Balance at March 31, 2024 | $(58823) | $(3347) | $1329 | $(60841) |
| Other comprehensive income (loss) | (910) | (759) |  | (1669) |
| Reclassification adjustment for (income) expense recognized in earnings |  | 817 |  | 817 |
| Balance at June 30, 2024 | $(59733) | $(3289) | $1329 | $(61693) |

---

------

<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

**BROOKLINE BANCORP, INC. AND SUBSIDIARIES**

**Notes to Unaudited Consolidated Financial Statements (Continued)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** |
| | **Investment**<br>**Securities**<br> **Available-for-Sale** | **Net Change in Fair Value of Cash Flow Hedges** | **Postretirement<br>Benefits** | **Accumulated Other<br>Comprehensive<br>Income (Loss)** |
| | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** |
| Balance at December 31, 2024 | $(53718) | $(1323) | $2159 | $(52882) |
| Other comprehensive income (loss) | 14064 | (2115) | (1956) | 9993 |
| Reclassification adjustment for (income) expense recognized in earnings |  | 3002 | 509 | 3511 |
| Balance at June 30, 2025 | $(39654) | $(436) | $712 | $(39378) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** |
| | **Investment**<br>**Securities**<br> **Available-for-Sale** | **Net Change in Fair Value of Cash Flow Hedges** | **Postretirement<br>Benefits** | **Accumulated Other<br>Comprehensive<br>Income (Loss)** |
| | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** |
| Balance at December 31, 2023 | $(52546) | $(1581) | $1329 | $(52798) |
| Other comprehensive income (loss) | (7187) | (3340) |  | (10527) |
| Reclassification adjustment for (income) expense recognized in earnings |  | 1632 |  | 1632 |
| Balance at June 30, 2024 | $(59733) | $(3289) | $1329 | $(61693) |

---

**(8) Derivatives and Hedging Activities**

The Company executes loan level derivative products such as interest rate swap agreements with commercial banking customers to aid them in managing their interest rate risk. The interest rate swap contracts allow the commercial banking customers to convert floating rate loan payments to fixed rate loan payments. The Company concurrently enters into offsetting swaps with a third party financial institution, effectively minimizing its net risk exposure resulting from such transactions. The third party financial institution exchanges the customer's fixed rate loan payments for floating rate loan payments. As the interest rate swap agreements associated with this program do not meet hedge accounting requirements, changes in the fair value are recognized directly in earnings. Based on the Company's intended use for the loan level derivatives at inception, the Company designates the derivative as either an economic hedge of an asset or liability, or a hedging instrument subject to the hedge accounting provisions of FASB ASC Topic 815, "Derivatives and Hedging".

The Company believes using interest rate derivatives adds stability to interest income and expense and allows the Company to manage its exposure to interest rate movements. The Company enters into interest rate swaps as part of its interest rate risk management strategy. These interest rate swaps are designated as cash flow hedges and involve the receipt of variable rate amounts from a counterparty in exchange for the Company making fixed payments. The Company enters into interest rate swaps as hedging instruments against the interest rate risk associated with the Company's FHLB borrowings and loan portfolio. For derivative instruments that are designated and qualify as cash flow hedging instruments, the effective portion of the gains or losses is reported as a component of OCI, and is reclassified into earnings in the period that the hedged forecasted transaction affects earnings.

The following table reflects the Company's derivative positions as of the date indicated below for interest rate derivatives which qualify as cash flow hedges for accounting purposes.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **At June 30, 2025** | **At June 30, 2025** | **At June 30, 2025** | **At June 30, 2025** | **At June 30, 2025** |
| | **Notional Amount** | **Average Maturity** | **Weighted Average Rate** | **Weighted Average Rate** | **Fair Value** |
| | **Notional Amount** | **Average Maturity** | **Current Rate Paid** | **Received Fixed Swap Rate** | **Fair Value** |
| | (in thousands) | (in years) | | | (in thousands) |
| &nbsp;&nbsp;&nbsp;Interest rate swaps on loans | $225000 | 1.65 | 4.34% | 3.39% | $(776) |

---

------

<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

**BROOKLINE BANCORP, INC. AND SUBSIDIARIES**

**Notes to Unaudited Consolidated Financial Statements (Continued)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **At December 31, 2024** | **At December 31, 2024** | **At December 31, 2024** | **At December 31, 2024** | **At December 31, 2024** |
| | **Notional Amount** | **Average Maturity** | **Weighted Average Rate** | **Weighted Average Rate** | **Fair Value** |
| | **Notional Amount** | **Average Maturity** | **Current Rate Paid** | **Received Fixed Swap Rate** | **Fair Value** |
| | (in thousands) | (in years) | | | (in thousands) |
| &nbsp;&nbsp;&nbsp;Interest rate swaps on loans | $225000 | 1.90 | 4.53% | 3.39% | $(2033) |

---

The Company utilizes risk participation agreements with other banks participating in commercial loan arrangements. Participating banks guarantee the performance on borrower-related interest rate swap contracts. Risk participation agreements are derivative financial instruments and are recorded at fair value. These derivatives are not designated as hedges and therefore, changes in fair value are recorded directly through earnings in other non-interest income at each reporting period. Under a risk participation-out agreement, a derivative asset, the Company participates out a portion of the credit risk associated with the interest rate swap position executed with the commercial borrower, for a fee paid to the participating bank.

The Company offers foreign exchange contracts to commercial borrowers to accommodate their business needs. These foreign exchange contracts do not qualify as hedges for accounting purposes. To mitigate the market and liquidity risk associated with these foreign exchange contracts, the Company enters into similar offsetting positions.

Asset derivatives and liability derivatives are included in other assets and accrued expenses and other liabilities on the unaudited consolidated balance sheets.

The following tables present the Company's customer related derivative positions for the periods indicated below for those derivatives not designated as hedging.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Notional Amount Maturing** | **Notional Amount Maturing** | **Notional Amount Maturing** | **Notional Amount Maturing** | **Notional Amount Maturing** | **Notional Amount Maturing** | **Notional Amount Maturing** | **Notional Amount Maturing** |
| | **Number of Positions** | **Less than 1 year** | **Less than 2 years** | **Less than 3 years** | **Less than 4 years** | **Thereafter** | **Total** | **Fair Value** |
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
| | **(Dollars In Thousands)** | **(Dollars In Thousands)** | **(Dollars In Thousands)** | **(Dollars In Thousands)** | **(Dollars In Thousands)** | **(Dollars In Thousands)** | **(Dollars In Thousands)** | **(Dollars In Thousands)** |
| Loan level derivatives |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Receive fixed, pay variable | 135 | $96243 | $129930 | $134819 | $168517 | $896366 | $1425875 | $47011 |
| &nbsp;&nbsp;&nbsp;Pay fixed, receive variable | 135 | 96243 | 129930 | 134819 | &nbsp;&nbsp;168517 | 896366 | 1425875 | 47011 |
| &nbsp;&nbsp;&nbsp;Risk participation-out agreements | 56 | 2749 | 29269 | 41684 | &nbsp;&nbsp;&nbsp;60520 | 296397 | 430619 | 553 |
| &nbsp;&nbsp;&nbsp;Risk participation-in agreements | 10 |  | 25654 |  | 29087 | 46193 | 100934 | 179 |
| Foreign exchange contracts |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Buys foreign currency, sells U.S. currency | 23 | $5560 | $— | $— | $— | $— | $5560 | $457 |
| &nbsp;&nbsp;&nbsp;Sells foreign currency, buys U.S. currency | 21 | 5105 |  |  |  |  | 5105 | 378 |

---

------

<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

**BROOKLINE BANCORP, INC. AND SUBSIDIARIES**

**Notes to Unaudited Consolidated Financial Statements (Continued)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Notional Amount Maturing** | **Notional Amount Maturing** | **Notional Amount Maturing** | **Notional Amount Maturing** | **Notional Amount Maturing** | **Notional Amount Maturing** | **Notional Amount Maturing** | **Notional Amount Maturing** |
| | **Number of Positions** | **Less than 1 year** | **Less than 2 years** | **Less than 3 years** | **Less than 4 years** | **Thereafter** | **Total** | **Fair Value** |
| | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| | **(Dollars In Thousands)** | **(Dollars In Thousands)** | **(Dollars In Thousands)** | **(Dollars In Thousands)** | **(Dollars In Thousands)** | **(Dollars In Thousands)** | **(Dollars In Thousands)** | **(Dollars In Thousands)** |
| Loan level derivatives |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Receive fixed, pay variable | 149 | $153724 | $57535 | $237601 | $93027 | $1131061 | $1672948 | $95720 |
| &nbsp;&nbsp;&nbsp;Pay fixed, receive variable | 149 | 153724 | 57535 | 237601 | 93027 | 1131061 | 1672948 | 95720 |
| &nbsp;&nbsp;&nbsp;Risk participation-out agreements | 68 | 33305 | 5847 | 59464 | 52828 | 388287 | 539731 | 495 |
| &nbsp;&nbsp;&nbsp;Risk participation-in agreements | 10 |  | 22518 | 3506 | 25346 | 50828 | 102198 | 137 |
| Foreign exchange contracts |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Buys foreign currency, sells U.S. currency | 26 | $5849 | $— | $— | $— | $— | $5849 | $459 |
| &nbsp;&nbsp;&nbsp;Sells foreign currency, buys U.S. currency | 24 | 5408 |  |  |  |  | 5408 | 482 |

---

------

<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

**BROOKLINE BANCORP, INC. AND SUBSIDIARIES**

**Notes to Unaudited Consolidated Financial Statements (Continued)**

Certain derivative agreements contain provisions that require the Company to post collateral if the derivative exposure exceeds a threshold amount. The Company posted collateral to dealer counterparties of $0.9 million in the normal course of business as of June 30, 2025 and December 31, 2024.

The tables below present the offsetting of derivatives and amounts subject to master netting agreements not offset in the unaudited consolidated balance sheet at the dates indicated.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **At June 30, 2025** | **At June 30, 2025** | **At June 30, 2025** | **At June 30, 2025** | **At June 30, 2025** | **At June 30, 2025** |
| | **Gross<br>Amounts Recognized** | **Gross Amounts<br>Offset in the<br>Statement of Financial Position** | **Net Amounts Presented in the Statement of Financial Position** | **Gross Amounts Not Offset in the<br>Statement of Financial Position** | **Gross Amounts Not Offset in the<br>Statement of Financial Position** | **Net Amount** |
| | **Gross<br>Amounts Recognized** | **Gross Amounts<br>Offset in the<br>Statement of Financial Position** | **Net Amounts Presented in the Statement of Financial Position** | **Financial Instruments Pledged** | **Cash Collateral Pledged** | **Net Amount** |
| | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** |
| Asset derivatives |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Derivatives designated as hedging instruments: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest rate derivatives | $27 | $— | $27 | $— | $— | $27 |
| &nbsp;&nbsp;&nbsp;Derivatives not designated as hedging instruments: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Loan level derivatives | $62488 | $— | $62488 | $— | $35985 | $26503 |
| &nbsp;&nbsp;&nbsp;Risk participation-out agreements | 553 |  | 553 |  |  | 553 |
| &nbsp;&nbsp;&nbsp;Foreign exchange contracts | 457 |  | 457 |  |  | 457 |
| Total | $63525 | $— | $63525 | $— | $35985 | $27540 |
| Liability derivatives |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Derivatives designated as hedging instruments: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest rate derivatives | $802 | $— | $802 | $— | $— | $802 |
| &nbsp;&nbsp;&nbsp;Derivatives not designated as hedging instruments: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Loan level derivatives | $62488 | $— | $62488 | $— | $910 | $61578 |
| &nbsp;&nbsp;&nbsp;Risk participation-in agreements | 179 |  | 179 |  |  | 179 |
| &nbsp;&nbsp;&nbsp;Foreign exchange contracts | 378 |  | 378 |  |  | 378 |
| Total | $63847 | $— | $63847 | $— | $910 | $62937 |

---

------

<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

**BROOKLINE BANCORP, INC. AND SUBSIDIARIES**

**Notes to Unaudited Consolidated Financial Statements (Continued)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **At December 31, 2024** | **At December 31, 2024** | **At December 31, 2024** | **At December 31, 2024** | **At December 31, 2024** | **At December 31, 2024** |
| | **Gross<br>Amounts Recognized** | **Gross Amounts<br>Offset in the<br>Statement of Financial Position** | **Net Amounts Presented in the Statement of Financial Position** | **Gross Amounts Not Offset in the<br>Statement of Financial Position** | **Gross Amounts Not Offset in the<br>Statement of Financial Position** | **Net Amount** |
| | **Gross<br>Amounts Recognized** | **Gross Amounts<br>Offset in the<br>Statement of Financial Position** | **Net Amounts Presented in the Statement of Financial Position** | **Financial Instruments Pledged** | **Cash Collateral Pledged** | **Net Amount** |
| | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** |
| Asset derivatives |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Derivatives designated as hedging instruments: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest rate derivatives | $18 | $— | $18 | $— | $— | $18 |
| &nbsp;&nbsp;&nbsp;Derivatives not designated as hedging instruments: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Loan level derivatives | $102608 | $— | $102608 | $— | $79592 | $23016 |
| &nbsp;&nbsp;&nbsp;Risk participation-out agreements | 495 |  | 495 |  |  | 495 |
| &nbsp;&nbsp;&nbsp;Foreign exchange contracts | 482 |  | 482 |  |  | 482 |
| Total | $103603 | $— | $103603 | $— | $79592 | $24011 |
| Liability derivatives |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Derivatives designated as hedging instruments: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest rate derivatives | $2051 | $— | $2051 | $— | $— | $2051 |
| &nbsp;&nbsp;&nbsp;Derivatives not designated as hedging instruments: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Loan level derivatives | $102608 | $— | $102608 | $— | $870 | $101738 |
| &nbsp;&nbsp;&nbsp;Risk participation-in agreements | 137 |  | 137 |  |  | 137 |
| &nbsp;&nbsp;&nbsp;Foreign exchange contracts | 459 |  | 459 |  |  | 459 |
| Total | $105255 | $— | $105255 | $— | $870 | $104385 |

---

The Company has agreements with certain of its derivative counterparties that contain credit-risk-related contingent provisions. These provisions provide the counterparty with the right to terminate its derivative positions and require the Company to settle its obligations under the agreements if the Company defaults on certain of its indebtedness or if the Company fails to maintain its status as a well-capitalized institution.

---

| | | |
|:---|:---|:---|
| | **Fair Value** | **Fair Value** |
| | **Six Months Ended <br> June 30, 2025** | **Six Months Ended <br> June 30, 2024** |
| | **(Dollars in Thousands)** | **(Dollars in Thousands)** |
| Derivatives designated as hedges | $(776) | $(4788) |
| (Loss) gain in OCI on derivatives (effective portion), net of tax | $(437) | $(3290) |
| Gain (loss) reclassified from OCI into interest income or interest expense (effective portion) | $(1068) | $(2206) |

---

The guidance in ASU 2017-12 requires that amounts in accumulated OCI that are included in the assessment of effectiveness should be reclassified into earnings in the same period in which the hedged forecasted transactions impact earnings. A portion of the balance reported in accumulated OCI related to derivatives will be reclassified to interest expense as interest payments are made or received on the Company's interest rate swaps. The Company monitors the risk of counterparty default on an ongoing basis.

------

<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

**BROOKLINE BANCORP, INC. AND SUBSIDIARIES**

**Notes to Unaudited Consolidated Financial Statements (Continued)**

**(9) Stock Based Compensation**

As of June 30, 2025, the Company had one active equity plan: the 2021 Plan. As a result of the 2021 Plan having been approved by the Company's stockholders at the 2021 annual meeting of stockholders, the Company discontinued granting awards under the 2014 Plan, and no further shares will be granted as awards under the 2014 Plan.

Of the awarded shares under the Plans, generally 50% vest ratably over three years with one-third of such shares vesting at each of the first, second and third anniversary dates of the awards. The remaining 50% of each award will vest three years after the award date based on the level of the Company's achievement of identified performance targets in comparison to the level of achievement of such identified performance targets by a defined peer group. If a participant leaves the Company prior to the third anniversary date of an award, any unvested shares are usually forfeited. Dividends declared with respect to shares awarded will be held by the Company and paid to the participant only when the shares vest.

Under the Plans, shares of the Company's common stock are reserved for issuance as restricted stock awards to officers, employees, and non-employee directors of the Company. Shares issued upon vesting may be either authorized but unissued shares or reacquired shares held by the Company as treasury shares. Any shares not issued because vesting requirements are not met will be retired back to treasury and be made available again for issuance under the Plans.

During the three and six months ended June 30, 2025 and June 30, 2024, no restricted stock awards were issued, respectively.

Total expense for the Plans was $1.0 million and $0.8 million for the three months ended June 30, 2025 and 2024, respectively. Total expense for the Plans was $1.9 million and $1.9 million for the six months ended June 30, 2025 and 2024, respectively.

**(10) EPS**

The following table is a reconciliation of basic EPS and diluted EPS:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2024** | **June 30, 2024** |
| | **Basic** | **Fully<br>Diluted** | **Basic** | **Fully<br>Diluted** |
| | **(Dollars in Thousands, Except Per Share Amounts)** | **(Dollars in Thousands, Except Per Share Amounts)** | **(Dollars in Thousands, Except Per Share Amounts)** | **(Dollars in Thousands, Except Per Share Amounts)** |
| Numerator: |  |  |  |  |
| Net income | $22026 | $22026 | $16372 | $16372 |
| Denominator: |  |  |  |  |
| Weighted average shares outstanding | 89104605 | 89104605 | 88904692 | 88904692 |
| Effect of dilutive securities |  | 508176 |  | 317623 |
| Adjusted weighted average shares outstanding | 89104605 | 89612781 | 88904692 | 89222315 |
| EPS | $0.25 | $0.25 | $0.18 | $0.18 |

---

------

<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

**BROOKLINE BANCORP, INC. AND SUBSIDIARIES**

**Notes to Unaudited Consolidated Financial Statements (Continued)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Six Months Ended** | **Six Months Ended** | **Six Months Ended** | **Six Months Ended** |
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2024** | **June 30, 2024** |
| | **Basic** | **Fully<br>Diluted** | **Basic** | **Fully<br>Diluted** |
| | **(Dollars in Thousands, Except Per Share Amounts)** | **(Dollars in Thousands, Except Per Share Amounts)** | **(Dollars in Thousands, Except Per Share Amounts)** | **(Dollars in Thousands, Except Per Share Amounts)** |
| Numerator: |  |  |  |  |
| Net income | $41126 | $41126 | $31037 | $31037 |
| Denominator: |  |  |  |  |
| Weighted average shares outstanding | 89104060 | 89104060 | 88899635 | 88899635 |
| Effect of dilutive securities |  | 486207 |  | 302277 |
| Adjusted weighted average shares outstanding | 89104060 | 89590267 | 88899635 | 89201912 |
| EPS | $0.46 | $0.46 | $0.35 | $0.35 |

---

**(11) Fair Value of Financial Instruments**

A description of the valuation methodologies used for assets and liabilities measured at fair value on a recurring and non-recurring basis, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. There were no changes in the valuation techniques used during the three and six months ended June 30, 2025 and June 30, 2024.

------

<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

**BROOKLINE BANCORP, INC. AND SUBSIDIARIES**

**Notes to Unaudited Consolidated Financial Statements (Continued)**

***Assets and Liabilities Recorded at Fair Value on a Recurring Basis***

The following tables set forth the carrying value of assets and liabilities measured at fair value on a recurring basis at the dates indicated:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Carrying Value as of June 30, 2025** | **Carrying Value as of June 30, 2025** | **Carrying Value as of June 30, 2025** | **Carrying Value as of June 30, 2025** |
| | **Level 1** | **Level 2** | **Level 3** | **Total** |
| | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** |
| Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Investment securities available-for-sale: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;GSE debentures | $— | $177685 | $— | $177685 |
| &nbsp;&nbsp;&nbsp;&nbsp;GSE CMOs |  | 54067 |  | 54067 |
| &nbsp;&nbsp;&nbsp;&nbsp;GSE MBSs |  | 141187 |  | 141187 |
| &nbsp;&nbsp;&nbsp;&nbsp;Municipal obligations |  | 3250 | 15696 | 18946 |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate debt obligations |  | 9763 | 2463 | 12226 |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. Treasury bonds |  | 462073 |  | 462073 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign government obligations |  | 500 |  | 500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investment securities available-for-sale | $— | $848525 | $18159 | $866684 |
| &nbsp;&nbsp;&nbsp;Interest rate derivatives | $— | $27 | $— | $27 |
| &nbsp;&nbsp;&nbsp;Derivatives not designated as hedging instruments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Loan level derivatives |  | 62488 |  | 62488 |
| &nbsp;&nbsp;&nbsp;Risk participation-out agreements |  | 553 |  | 553 |
| &nbsp;&nbsp;&nbsp;Foreign exchange contracts |  | 457 |  | 457 |
| Liabilities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest rate derivatives | $— | $802 | $— | $802 |
| &nbsp;&nbsp;&nbsp;Derivatives not designated as hedging instruments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Loan level derivatives |  | 62488 |  | 62488 |
| &nbsp;&nbsp;&nbsp;Risk participation-in agreements |  | 179 |  | 179 |
| &nbsp;&nbsp;&nbsp;Foreign exchange contracts |  | 378 |  | 378 |

---

------

<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

**BROOKLINE BANCORP, INC. AND SUBSIDIARIES**

**Notes to Unaudited Consolidated Financial Statements (Continued)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Carrying Value as of December 31, 2024** | **Carrying Value as of December 31, 2024** | **Carrying Value as of December 31, 2024** | **Carrying Value as of December 31, 2024** |
| | **Level 1** | **Level 2** | **Level 3** | **Total** |
| | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** |
| Assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Investment securities available-for-sale: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;GSE debentures | $— | $176294 | $— | $176294 |
| &nbsp;&nbsp;&nbsp;&nbsp;GSE CMOs |  | 55543 |  | 55543 |
| &nbsp;&nbsp;&nbsp;&nbsp;GSE MBSs |  | 148285 |  | 148285 |
| &nbsp;&nbsp;&nbsp;&nbsp;Municipal obligations |  | 3198 | 17056 | 20254 |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate debt obligations |  | 9853 | 2434 | 12287 |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. Treasury bonds |  | 481872 |  | 481872 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign government obligations |  | 499 |  | 499 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investment securities available-for-sale | $— | $875544 | $19490 | $895034 |
| &nbsp;&nbsp;&nbsp;Interest rate derivatives |  | 18 |  | 18 |
| &nbsp;&nbsp;&nbsp;Loan level derivatives |  | 102608 |  | 102608 |
| &nbsp;&nbsp;&nbsp;Risk participation-out agreements |  | 495 |  | 495 |
| &nbsp;&nbsp;&nbsp;Foreign exchange contracts |  | 482 |  | 482 |
| Liabilities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest rate derivatives | $— | $2051 | $— | $2051 |
| &nbsp;&nbsp;&nbsp;Loan level derivatives |  | 102608 |  | 102608 |
| &nbsp;&nbsp;&nbsp;Risk participation-in agreements |  | 137 |  | 137 |
| &nbsp;&nbsp;&nbsp;Foreign exchange contracts |  | 459 |  | 459 |

---

*Investment Securities Available-for-Sale*

The fair value of investment securities is based principally on market prices and dealer quotes received from third-party and nationally-recognized pricing services for identical investment securities such as U.S. Treasury and agency securities. These prices are validated by comparing the primary pricing source with an alternative pricing source when available. When quoted market prices for identical securities are unavailable, the Company uses market prices provided by independent pricing services based on recent trading activity and other observable information, including but not limited to market interest-rate curves, referenced credit spreads and estimated prepayment speeds, where applicable. These investments include GSE debentures, GSE mortgage-related securities, SBA commercial loan asset backed securities, corporate debt securities, municipal obligations and U.S. Treasury bonds, all of which are included in Level 2. As of June 30, 2025, certain corporate debt securities and municipal obligations were valued using pricing models included in Level 3.

Additionally, management reviews changes in fair value from period to period and performs testing to ensure that prices received from the third parties are consistent with management's expectation of the market. Changes in the prices obtained from the pricing service are analyzed from month to month, taking into consideration changes in market conditions including changes in mortgage spreads, changes in U.S. Treasury security yields and changes in generic pricing of 15-year and 30-year securities. Additional analysis may include a review of prices provided by other independent parties, a yield analysis, a review of average life changes using Bloomberg analytics and a review of historical pricing for a particular security.

*Derivatives and Hedging Instruments*

The fair value of interest rate derivatives designated as hedging instruments, loan level derivatives, risk participation agreements (RPA in/out), and foreign exchange contracts represent a Level 2 valuation and are based on settlement values adjusted for credit risks associated with the counterparties and the Company and observable market interest rate curves and foreign exchange rates where applicable. Credit risk adjustments consider factors such as the likelihood of default by the Company and its counterparties, its net exposures and remaining contractual life. To date, the Company has not realized any losses due to a counterparty's inability to pay any net uncollateralized position. Refer also to Note 8, "Derivatives and Hedging Activities."

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<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

**BROOKLINE BANCORP, INC. AND SUBSIDIARIES**

**Notes to Unaudited Consolidated Financial Statements (Continued)**

There were no transfers between levels for assets and liabilities recorded at fair value on a recurring basis at June 30, 2025 and December 31, 2024, respectively.

The following tables summarize information about significant unobservable inputs related to the Company's categories of Level 3 financial assets and liabilities measured on a recurring basis.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Quantitative Information About Level 3 Fair Value Measurements - Recurring Basis** | **Quantitative Information About Level 3 Fair Value Measurements - Recurring Basis** | **Quantitative Information About Level 3 Fair Value Measurements - Recurring Basis** | **Quantitative Information About Level 3 Fair Value Measurements - Recurring Basis** | **Quantitative Information About Level 3 Fair Value Measurements - Recurring Basis** | **Quantitative Information About Level 3 Fair Value Measurements - Recurring Basis** |
| **Financial Instrument** | **Estimated Fair Value** | **Valuation Technique(s)** | **Significant Unobservable Inputs** | **Range of Inputs** | **Weighted Average** |
| **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** |
| June 30, 2025 |  |  |  |  |  |
| Assets |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Municipal obligations | $15696 | Discounted Cash Flow | Discount Rate from Bloomberg BVAL | 0.0%-3.91% | 1.29% |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate debt obligations | 2463 | Observable Bids | Bloomberg TRACE |  |  |

---

The following table summarizes the changes in estimated fair value for all assets and liabilities measured at estimated fair value on a recurring basis using significant unobservable inputs (Level 3)

---

| | | |
|:---|:---|:---|
| **Changes in Estimated Fair Value of Level 3 Financial Assets and Liabilities - Recurring Basis** | **Changes in Estimated Fair Value of Level 3 Financial Assets and Liabilities - Recurring Basis** | **Changes in Estimated Fair Value of Level 3 Financial Assets and Liabilities - Recurring Basis** |
| | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** |
| | **(In Thousands)** | **(In Thousands)** |
| | **Municipal obligations** | **Corporate debt obligations** |
| **Beginning balance** | $17056 | $2434 |
| Purchases | 1359 |  |
| Unrealized gains (losses) included in comprehensive income | (99) | 17 |
| Transfers in |  |  |
| Transfers out |  |  |
| Sales |  |  |
| Maturities, calls, and paydowns <sup>(1)</sup> | (2620) | 12 |
| **Ending balance** | $15696 | $2463 |

---

_______________________________________________________________________

(1) The $12 thousand includes amortization of purchase discount which exceeded maturities, calls and paydowns during the period resulting in an increase in balance.

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<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

**BROOKLINE BANCORP, INC. AND SUBSIDIARIES**

**Notes to Unaudited Consolidated Financial Statements (Continued)**

***Assets and Liabilities Recorded at Fair Value on a Non-Recurring Basis***

Assets and liabilities measured at fair value on a non-recurring basis are summarized below at the dated indicated:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Carrying Value as of June 30, 2025** | **Carrying Value as of June 30, 2025** | **Carrying Value as of June 30, 2025** | **Carrying Value as of June 30, 2025** |
| | **Level 1** | **Level 2** | **Level 3** | **Total** |
| | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** |
| Assets measured at fair value on a non-recurring basis: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Collateral-dependent impaired loans and leases | $— | $— | $17700 | $17700 |
| &nbsp;&nbsp;&nbsp;OREO |  |  | 700 | 700 |
| &nbsp;&nbsp;&nbsp;Repossessed assets |  | 588 |  | 588 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets measured at fair value on a non-recurring basis | $— | $588 | $18400 | $18988 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Carrying Value as of December 31, 2024** | **Carrying Value as of December 31, 2024** | **Carrying Value as of December 31, 2024** | **Carrying Value as of December 31, 2024** |
| | **Level 1** | **Level 2** | **Level 3** | **Total** |
| | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** |
| Assets measured at fair value on a non-recurring basis: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Collateral-dependent impaired loans and leases | $— | $— | $28100 | $28100 |
| &nbsp;&nbsp;&nbsp;OREO |  |  | 700 | 700 |
| &nbsp;&nbsp;&nbsp;Repossessed assets |  | 403 |  | 403 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets measured at fair value on a non-recurring basis | $— | $403 | $28800 | $29203 |

---

*Collateral-Dependent Impaired Loans and Leases*

For nonperforming loans and leases where the credit quality of the borrower has deteriorated significantly, fair values of the underlying collateral were estimated using purchase and sales agreements (Level 2), or comparable sales or recent appraisals (Level 3), adjusted for selling costs and other expenses.

*OREO*

The Company records OREO at the lower of cost or fair value. In estimating fair value, the Company utilizes purchase and sales agreements (Level 2) or comparable sales, recent appraisals or cash flows discounted at an interest rate commensurate with the risk associated with these cash flows (Level 3), adjusted for selling costs and other expenses.

*Repossessed Assets*

Repossessed assets are carried at estimated fair value less costs to sell based on auction pricing (Level 2).

------

<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

**BROOKLINE BANCORP, INC. AND SUBSIDIARIES**

**Notes to Unaudited Consolidated Financial Statements (Continued)**

The table below presents quantitative information about significant unobservable inputs (Level 3) for assets measured at fair value on a non-recurring basis at the dates indicated.

---

| | | | |
|:---|:---|:---|:---|
| | **Fair Value** | **Fair Value** | **Valuation Technique** |
| | **At June 30,<br>2025** | **At December 31, 2024** | |
| | **(Dollars in Thousands)** | **(Dollars in Thousands)** | |
| Collateral-dependent impaired loans and leases | $17700 | $28100 | Appraisal of collateral <sup>(1)</sup> |
| Other real estate owned | 700 | 700 | Appraisal of collateral <sup>(1)</sup> |

---

________________________________________________________________________

<sup>(1)</sup> Fair value is generally determined through independent appraisals of the underlying collateral. The Company may also use another available source of collateral assessment to determine a reasonable estimate of the fair value of the collateral. Appraisals may be adjusted by management for qualitative factors such as economic factors and estimated liquidation expenses. The range of the unobservable inputs used may vary but is generally 0% - 10% on the discount for costs to sell and 0% - 15% on appraisal adjustments.

***Summary of Estimated Fair Values of Financial Instruments***

The following table presents the carrying amount, estimated fair value, and placement in the fair value hierarchy of the Company's financial instruments at the dates indicated. This table excludes financial instruments for which the carrying amount approximates fair value. Financial assets for which the fair value approximates carrying value include cash and cash equivalents, restricted equity securities, and accrued interest receivable. Financial liabilities for which the fair value approximates carrying value include non-maturity deposits, short-term borrowings, and accrued interest payable. There were no transfers between levels during the three months and six months ended June 30, 2025.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | | **Fair Value Measurements at June 30, 2025** | **Fair Value Measurements at June 30, 2025** | **Fair Value Measurements at June 30, 2025** |
| |<br>**Carrying<br>Value** |<br>**Estimated<br>Fair Value** | **Level 1<br>Inputs** | **Level 2<br>Inputs** | **Level 3<br>Inputs** |
| | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** |
| Financial assets: |  |  |  |  |  |
| &nbsp;&nbsp;Loans and leases, net | $9455649 | $9300465 | $— | $— | $9300465 |
| Financial liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;Certificates of deposits and brokered deposits | 2634092 | 2628121 |  | 2628121 |  |
| &nbsp;&nbsp;Borrowed funds | 1155051 | 1164629 |  | 1164629 |  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | | **Fair Value Measurements at December 31, 2024** | **Fair Value Measurements at December 31, 2024** | **Fair Value Measurements at December 31, 2024** |
| |<br>**Carrying<br>Value** |<br>**Estimated<br>Fair Value** | **Level 1<br>Inputs** | **Level 2<br>Inputs** | **Level 3<br>Inputs** |
| | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** |
| Financial assets: |  |  |  |  |  |
| &nbsp;&nbsp;Loans and leases, net | $9654205 | $9298057 | $— | $— | $9298057 |
| Financial liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;Certificates of deposits and brokered deposits | 2754397 | 2749092 |  | 2749092 |  |
| &nbsp;&nbsp;&nbsp;Borrowed funds | 1519846 | 1547183 |  | 1547183 |  |

---

*Loans and Leases*

The fair values of performing loans and leases was estimated by segregating the portfolio into its primary loan and lease categories—commercial real estate mortgage, multi-family mortgage, construction, commercial, equipment financing, condominium association, residential mortgage, home equity and other consumer. These categories were further disaggregated based upon significant financial characteristics such as type of interest rate (fixed / variable) and payment status (current / past-due). Using the exit price valuation method, the Company discounts the contractual cash flows for each loan category using interest rates currently being offered for loans with similar terms to borrowers of similar quality and incorporates estimates of future loan prepayments.

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<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

**BROOKLINE BANCORP, INC. AND SUBSIDIARIES**

**Notes to Unaudited Consolidated Financial Statements (Continued)**

*Deposits*

The fair values of deposit liabilities with no stated maturity (demand, NOW, savings and money market savings accounts) are equal to the carrying amounts payable on demand. The fair value of certificates of deposit represents contractual cash flows discounted using interest rates currently offered on deposits with similar characteristics and remaining maturities. The fair value estimates for deposits do not include the benefit that results from the low-cost funding provided by the Company's core deposit relationships (deposit-based intangibles).

*Borrowed Funds*

The fair value of federal funds purchased is equal to the amount borrowed. The fair value of FHLB advances and repurchase agreements represents contractual repayments discounted using interest rates currently available for borrowings with similar characteristics and remaining maturities. The fair values reported for retail repurchase agreements are based on the discounted value of contractual cash flows. The discount rates used are representative of approximate rates currently offered on borrowings with similar characteristics and maturities. The fair values reported for subordinated deferrable interest debentures are based on the discounted value of contractual cash flows. The discount rates used are representative of approximate rates currently offered on instruments with similar terms and maturities.

**(12) Commitments and Contingencies**

***Off-Balance Sheet Financial Instruments***

The Company is party to off-balance sheet financial instruments in the normal course of business to meet the financing needs of its customers and to reduce its own exposure to fluctuations in interest rates. These financial instruments include loan commitments, standby and commercial letters of credit, and loan level derivatives. According to GAAP, these financial instruments are not recorded in the financial statements until they are funded or related fees are incurred or received.

The contract amounts reflect the extent of the involvement the Company has in particular classes of these instruments. Such commitments involve, to varying degrees, elements of credit risk and interest-rate risk in excess of the amount recognized in the consolidated balance sheets. The Company's exposure to credit loss in the event of non-performance by the counterparty is represented by the fair value of the instruments. The Company uses the same policies in making commitments and conditional obligations as it does for on-balance sheet instruments.

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**BROOKLINE BANCORP, INC. AND SUBSIDIARIES**

**Notes to Unaudited Consolidated Financial Statements (Continued)**

Financial instruments with off-balance-sheet risk at the dates indicated follow:

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| | | |
|:---|:---|:---|
| | **At June 30, 2025** | **At December 31, 2024** |
| | **(In Thousands)** | **(In Thousands)** |
| Financial instruments whose contract amounts represent credit risk: |  |  |
| &nbsp;&nbsp;&nbsp;Commitments to originate loans and leases: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial real estate | $40672 | $11126 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial | 111854 | 144721 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Residential mortgage | 24646 | 14607 |
| &nbsp;&nbsp;&nbsp;Unadvanced portion of loans and leases | 952115 | 1076783 |
| &nbsp;&nbsp;&nbsp;Unused lines of credit: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Home equity | 807749 | 780214 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other consumer | 129642 | 113838 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other commercial | 429 | 398 |
| &nbsp;&nbsp;&nbsp;Unused letters of credit: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial standby letters of credit | 9695 | 12702 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Performance standby letters of credit | 28040 | 24325 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial and similar letters of credit | 2206 | 2330 |
| &nbsp;&nbsp;&nbsp;Interest rate derivatives | 225000 | 225000 |
| &nbsp;&nbsp;&nbsp;Loan level derivatives (Notional principal amounts): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Receive fixed, pay variable | 1425875 | 1672948 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pay fixed, receive variable | 1425875 | 1672948 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk participation-out agreements | 430619 | 539731 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk participation-in agreements | 100934 | 102198 |
| &nbsp;&nbsp;&nbsp;Foreign exchange contracts (Notional amounts): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Buys foreign currency, sells U.S. currency | 5560 | 5849 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sells foreign currency, buys U.S. currency | 5105 | 5408 |

---

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require the payment of a fee by the customer. Since some of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer's creditworthiness on a case-by-case basis. The amount of collateral obtained, if any, is based on management's credit evaluation of the borrower.

Standby and commercial letters of credit are conditional commitments issued by the Company to guarantee performance of a customer to a third party. These standby and commercial letters of credit are primarily issued to support the financing needs of the Company's commercial customers. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers.

From time to time, the Company enters into loan level derivatives, risk participation agreements or foreign exchange contracts with commercial customers and third-party financial institutions. These derivatives allow the Company to offer long-term fixed-rate commercial loans while mitigating the interest-rate or foreign exchange risk of holding those loans. In a loan level derivative transaction, the Company lends to a commercial customer on a floating-rate basis and then enters into a loan level derivative with that customer. Concurrently, the Company enters into offsetting swaps with a third-party financial institution, effectively minimizing its net interest-rate risk exposure resulting from such transactions. The fair value of these derivatives are presented in Note 8.

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**BROOKLINE BANCORP, INC. AND SUBSIDIARIES**

**Notes to Unaudited Consolidated Financial Statements (Continued)**

***Lease Commitments***

The Company leases certain office space under various noncancellable operating leases as well as other assets. These leases have terms ranging from 1 year to over 19 years. Certain leases contain renewal options and escalation clauses which can increase rental expenses based principally on the consumer price index and fair market rental value provisions. All of the Company's current outstanding leases are classified as operating leases.

The Company considered the following criteria when determining whether a contract contains a lease, the existence of an identifiable asset and the right to obtain substantially all of the economic benefits from use of the asset through the period. The Company uses the FHLB classic advance rates available as of the lease's start dates as the discount rate to determine the net present value of the remaining lease payments.

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| | | |
|:---|:---|:---|
| | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2024** |
| | **(In Thousands)** | **(In Thousands)** |
| **The components of lease expense was as follows:** | | |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease cost | $4418 | $4548 |
| **Supplemental cash flow information related to leases was as follows:** |  |  |
| Cash paid for amounts included in the measurement of lease liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating cash flows for operating leases | $4518 | $4629 |
| Right-of-use assets obtained in exchange for new lease obligations: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating leases assets | $246 | $8841 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating leases liabilities | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;246 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8841 |

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| | | | | |
|:---|:---|:---|:---|:---|
| | **At June 30, 2025** | **At June 30, 2025** | **At December 31, 2024** | **At December 31, 2024** |
| | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** |
| **Supplemental balance sheet information related to leases was as follows:** | | | | |
| **Operating Leases** | | | | |
| Operating lease right-of-use assets | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$| 42415 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$| 43527 |
| Operating lease liabilities | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;43528 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;43528 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;44785 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;44785 |
| **Weighted Average Remaining Lease Term** |  |  |  |  |
| Operating leases | 9.08 | 9.08 | 8.90 | 8.90 |
| **Weighted Average Discount Rate** |  |  |  |  |
| Operating leases | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1% |

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**BROOKLINE BANCORP, INC. AND SUBSIDIARIES**

**Notes to Unaudited Consolidated Financial Statements (Continued)**

A summary of future minimum rental payments under such leases at the dates indicated follows:

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| | |
|:---|:---|
| | **Minimum Rental Payments** |
| | **June 30, 2025** |
| | **(In Thousands)** |
| Remainder of 2025 | $4629 |
| Year ending: |  |
| &nbsp;&nbsp;&nbsp;2026 | 8976 |
| &nbsp;&nbsp;&nbsp;2027 | 7970 |
| &nbsp;&nbsp;&nbsp;2028 | 6421 |
| &nbsp;&nbsp;&nbsp;2029 | 4589 |
| &nbsp;&nbsp;&nbsp;2030 | 2978 |
| &nbsp;&nbsp;&nbsp;Thereafter | 15370 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $50933 |
| Less imputed interest | (7405) |
| Present value of lease liability | $43528 |

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Certain leases contain escalation clauses for real estate taxes and other expenditures, which are not included above. The total real estate taxes were $1.2 million and $1.2 million for the six months ended June 30, 2025 and 2024, respectively. Total other expenditures were $0.3 million and $0.3 million for the six months ended June 30, 2025 and 2024, respectively. Total rental expense was $4.4 million and $4.5 million for the six months ended June 30, 2025 and 2024, respectively. Total rental expense was $2.2 million and $2.2 million for the three months ended June 30, 2025 and 2024, respectively.

***Legal Proceedings***

In the normal course of business, there are various outstanding legal proceedings. In the opinion of management, after consulting with legal counsel, the consolidated financial position and results of operations of the Company are not expected to be affected materially by the outcome of such proceedings.

**(13) Revenue from Contracts with Customers**

***Overview***

Revenue from contracts with customers in the scope of ASC 606 ("Topic 606") is measured based on the consideration specified in the contract with a customer and excludes amounts collected on behalf of third parties. The Company recognizes revenue from contracts with customers when it satisfies its performance obligations.

The Company's performance obligations are generally satisfied as services are rendered and can either be satisfied at a point in time or over time. Unsatisfied performance obligations at the report date are not material to our consolidated financial statements.

In certain cases, other parties are involved with providing services to our customers. If the Company is a principal in the transaction (providing services itself or through a third party on its behalf), revenues are reported based on the gross consideration received from the customer and any related expenses are reported in gross noninterest expense. If the Company is an agent in the transaction (referring to another party to provide services), the Company reports its net fee or commission retained as revenue.

A substantial portion of the Company's revenue is specifically excluded from the scope of Topic 606. This exclusion is associated with financial instruments, including interest income on loans and investment securities, in addition to loan derivative income and gains on loan and investment sales. For the revenue that is in-scope of Topic 606, the following is a description of principal activities from which the Company generates its revenue from contracts with customers, separated by the timing of revenue recognition.

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**BROOKLINE BANCORP, INC. AND SUBSIDIARIES**

**Notes to Unaudited Consolidated Financial Statements (Continued)**

*Revenue Recognized at a Point in Time*

The Company recognizes revenue that is transactional in nature and such revenue is earned at a point in time. Revenue that is recognized at a point in time includes card interchange fees (fee income related to debit card transactions), ATM fees, wire transfer fees, overdraft charge fees, and stop-payment and returned check fees. Additionally, revenue is collected from loan fees, such as letters of credit, line renewal fees and application fees. Such revenue is derived from transactional information and is recognized as revenue immediately as the transactions occur or upon providing the service to complete the customer's transaction.

*Revenue Recognized Over Time*

The Company recognizes revenue over a period of time, generally monthly, as services are performed and performance obligations are satisfied. Such revenue includes commissions on investments, insurance sales and service charges on deposit accounts. Fee revenue from service charges on deposit accounts represents the service charges assessed to customers who hold deposit accounts at the Banks.

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**Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations**

**Forward-Looking Statements**

Certain statements contained in this Quarterly Report on Form 10-Q 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. Forward-looking statements involve risks and uncertainties. These statements, which are based on certain assumptions and describe the Company's future plans, strategies and expectations, can generally be identified by the use of the words "may," "will," "should," "could," "would," "plan," "potential," "estimate," "project," "believe," "intend," "anticipate," "expect," "target" and similar expressions. These statements include, among others, statements regarding the Company's intent, belief or expectations with respect to economic conditions, trends affecting the Company's financial condition or results of operations, and the Company's exposure to market, liquidity, interest-rate and credit risk.

Forward-looking statements are based on the current assumptions underlying the statements and other information with respect to the beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions of management and the financial condition, results of operations, future performance and business are only expectations of future results. Although the Company believes that the expectations reflected in the Company's forward-looking statements are reasonable, the Company's actual results could differ materially from those projected in the forward-looking statements as a result of, among other important factors, 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; 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; failure to complete the proposed merger with Berkshire Hills Bancorp, Inc. ("Berkshire") or unexpected delays related to the merger or either party's inability to satisfy closing conditions required to complete the merger; 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 merger); certain restrictions during the pendency of the proposed merger with Berkshire that may impact the Company's ability to pursue certain business opportunities or strategic transactions; the diversion of management's attention from ongoing business operations and opportunities; 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; and the other risks and uncertainties detailed in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and other filings submitted to the SEC. Forward-looking statements speak only as of the date on which they are made. 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.

**Introduction**

Brookline Bancorp, Inc., a Delaware corporation, operates as a multi-bank holding company for Brookline Bank and its subsidiaries; BankRI and its subsidiaries; PCSB Bank and its subsidiaries; and Clarendon Private.

As a commercially-focused financial institution with 64 full-service banking offices throughout Greater Boston, the north shore of Massachusetts, Rhode Island and New York, the Company, through Brookline Bank, BankRI and PCSB Bank, offers a wide range of commercial, business and retail banking services, including a full complement of cash management products, foreign exchange services, on-line and mobile banking services, consumer and residential loans and investment advisory services, designed to meet the financial needs of small- to mid-sized businesses and individuals throughout central New England and the Lower Hudson Valley in New York. The Banks and their subsidiaries lend primarily in all New England states and New York, with the exception of the equipment financing portfolio, 20.4% of which is in the Greater New York and New Jersey metropolitan area and 79.6% of which is in other areas in the U.S. as of June 30, 2025. Clarendon Private is a registered investment advisor with the SEC. Through Clarendon Private, the Company offers a wide range of wealth management services to individuals, families, endowments and foundations to help these clients meet their long-term financial goals.

The Company focuses its business efforts on profitably growing its commercial lending businesses, both organically and through acquisitions. The Company's customer focus, multi-bank structure, and risk management are integral to its organic growth strategy and serve to differentiate the Company from its competitors. As full-service financial institutions, the Banks

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and their subsidiaries focus their efforts on developing and deepening long-term banking relationships with qualified customers through a full complement of products, excellent customer service, and strong risk management.

The Company manages the Banks under a uniform strategic objective, with one set of uniform policies consistently applied by one executive management team. Within this environment, the Company believes that the ability to make customer decisions locally enhances management's motivation, service levels and, as a consequence, the Company's financial results. As such, while most back-office functions are consolidated at the holding company level, branding and decision-making, including credit decisions and pricing, remain largely local in order to better meet the needs of bank customers and further motivate the Banks' commercial, business and retail bankers. These credit decisions, at the local level, are executed in accordance with corporate policies overseen by the Company's credit department.

The competition for loans and leases and deposits remains strong, with growth and pricing influenced by the Federal Reserve's interest rate-setting actions. Management's scenario analysis of deposit sensitivity to the current rate environment and customer demand for non-depository investment alternatives suggests further deposit mix migration and increased sensitivity to interest rates.

As the interest rate environment resets to a more normal, upward-sloping yield curve with shorter-term interest rates lower than longer-term interest rates, management expects the net interest margin to increase. This is due to deposit and wholesale funding costs repricing at lower rates, while legacy loans do not reprice at the same magnitude.

However, if both short- and long-term interest rates fall, net interest income models, using a projected flat balance sheet with stable deposit balances and an average sensitivity of deposit rates of approximately 40% to market rates, forecast that a parallel decrease in rates will have a neutral to slightly negative impact on the Company's net interest income, net interest spread, and net interest margin. Note, while our long term historical sensitivity of deposit rates approximates 40%, more recently, deposit rate sensitivity has been higher, which if it continues would have a more neutral or positive impact on the net interest income.

As discussed above, changes in interest rates could also precipitate a change in the mix and volume of the Company's deposits and loans. The future operating results of the Company will depend on its ability to maintain or increase the current net interest income, manage credit risk, increase sources of non-interest income, while managing non-interest expenses.

The Company and the Banks are supervised, examined and regulated by the FRB. As a Massachusetts-chartered trust company, Brookline Bank is subject to supervision, examination and regulation by the Massachusetts Division of Banks. As a Rhode Island-chartered financial institution, BankRI is subject to examination, supervision and regulation by the Banking Division of the Rhode Island Department of Business Regulation. As a New York-chartered commercial bank, PCSB Bank is subject to regulation, supervision and examination by the New York State Department of Financial Services. The FDIC insures each of the Banks' deposits up to $250,000 per depositor.

The Company's common stock is traded on the Nasdaq Global Select Market<sup>SM</sup> under the symbol "BRKL."

On December 16, 2024, Berkshire, Commerce Acquisition Sub, Inc., a Delaware corporation and wholly-owned subsidiary of Berkshire formed solely to facilitate the merger ("Merger Sub") and the Company, entered into an Agreement and Plan of Merger (the "Merger Agreement"). The Merger Agreement provides that, upon the terms and subject to the conditions set forth therein, Merger Sub will merge with and into the Company, with the Company as the surviving entity, and immediately thereafter, the Company will merge with and into Berkshire, with Berkshire as the surviving entity (collectively, the "Merger"). As a result of the Merger, the separate corporate existence of the Company will cease, and Berkshire will continue as the surviving corporation. Under the terms of the Merger Agreement, which was unanimously approved by the Boards of Directors of both companies, each outstanding share of our common stock will be exchanged for the right to receive 0.42 shares of Berkshire common stock. Holders of Company common stock will receive cash in lieu of fractional shares of Berkshire common stock. Stockholders of both companies approved the proposed transaction on May 21, 2025. The proposed transaction is expected to close in the second half of 2025, subject to satisfaction of customary closing conditions, including receipt of required regulatory approvals.

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**Executive Overview**

***Balance Sheet***

Total assets decreased $336.6 million, or 5.7% on an annualized basis, to $11.6 billion as of June 30, 2025 from $11.9 billion as of December 31, 2024. The decrease was primarily driven by decreases in loans and leases, other assets, and cash and cash equivalents. Cash, cash equivalents and available for sale investment securities decreased $65.3 million, or 9.1% on an annualized basis, to $1.37 billion as of June 30, 2025 from $1.44 billion as of December 31, 2024. This decreased the Company's on balance sheet liquidity from 12.1% of total assets as of December 31, 2024 to 11.9% of total assets as of June 30, 2025.

Total loans and leases decreased $196.9 million, or 4.0% on an annualized basis, to $9.6 billion as of June 30, 2025 from $9.8 billion as of December 31, 2024. The Company's commercial loan portfolios, which are composed of commercial real estate loans and commercial loans and leases, totaled $8.0 billion, or 83.5% of total loans and leases as of June 30, 2025, a decrease of $216.9 million, or 5.3% on an annualized basis, from $8.2 billion, or 84.1% of total loans and leases as of December 31, 2024.

Other assets decreased $45.2 million, or 32.0% on an annualized basis, to $237.5 million as of June 30, 2025 from 282.6 million as of December 31, 2024, mainly driven by a decrease in interest rate derivative assets.

Cash and cash equivalents decreased $36.9 million, or 13.6% on an annualized basis, to $506.7 million as of June 30, 2025 from $543.7 million as of December 31, 2024.

Total deposits increased $59.6 million, or 1.3% on an annualized basis, to $9.0 billion as of June 30, 2025 from $8.9 billion as of December 31, 2024. Core deposits, which include demand checking, NOW, money market and savings accounts, totaled $6.3 billion, or 70.6% of total deposits, as of June 30, 2025, an increase of $179.9 million, or 5.9% on an annualized basis, from $6.1 billion, or 69.1% of total deposits, as of December 31, 2024. Certificate of deposit balances totaled $1.9 billion, or 21.0% of total deposits as of June 30, 2025, a decrease of $7.8 million, or 0.8% on an annualized basis, from $1.9 billion, or 21.2% of total deposits as of December 31, 2024. Brokered deposits totaled $756.4 million, or 8.4% of total deposits as of June 30, 2025, a decrease of $112.5 million, or 25.9% on an annualized basis, from $869.0 million, or 9.8% of total deposits as of December 31, 2024.

Total borrowed funds decreased $364.8 million to $1.2 billion as of June 30, 2025 from $1.5 billion as of December 31, 2024.

***Asset Quality***

Nonperforming assets as of June 30, 2025 totaled $63.6 million, or 0.55% of total assets, compared to $70.5 million, or 0.59% of total assets, as of December 31, 2024. Net charge-offs for the three months ended June 30, 2025 were $5.1 million, or 0.21% of average loans and leases on an annualized basis, compared to $8.4 million, or 0.35% of average loans and leases on an annualized basis, for the three months ended June 30, 2024.

The ratio of the allowance for loan and lease losses to total loans and leases was 1.32% as of June 30, 2025, compared to 1.28% as of December 31, 2024.

The ratio of the allowance for loan and lease losses to nonaccrual loans and leases was 203.38% as of June 30, 2025, compared to 180.37% as of December 31, 2024.

***Capital Strength***

The Company is a "well-capitalized" bank holding company as defined in the FRB's Regulation Y. The Company's common equity Tier 1 capital ratio was 11.05% as of June 30, 2025, compared to 10.46% as of December 31, 2024. The Company's Tier 1 leverage ratio was 9.40% as of June 30, 2025, compared to 9.06% as of December 31, 2024. As of June 30, 2025, the Company's Tier 1 risk-based capital ratio was 11.15%, compared to 10.56% as of December 31, 2024. The Company's Total risk-based capital ratio was 13.03% as of June 30, 2025, compared to 12.42% as of December 31, 2024.

The Company's ratio of stockholders' equity to total assets was 10.84% and 10.26% as of June 30, 2025 and December 31, 2024, respectively. The Company's ratio of tangible stockholders' equity to tangible assets was 8.82% and 8.27% as of June 30, 2025 and December 31, 2024, respectively.

***Net Income***

For the three months ended June 30, 2025, the Company reported net income of $22.0 million, or $0.25 per basic and diluted share, an increase of $5.7 million, or 34.5%, from net income of $16.4 million, or $0.18 per basic and diluted share, for

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the three months ended June 30, 2024. This increase in net income is primarily the result of an increase in net interest income of $8.7 million and a decrease of $1.1 million in non-interest expense, partially offset by an increase in the provision for income taxes of $2.3 million and an increase in provision for credit losses on loans of $1.4 million. Refer to*"Results of Operations"* below for further discussion.

For the six months ended June 30, 2025, the Company reported net income of $41.1 million, or $0.46 per basic and diluted share, an increase of $10.1 million, or 32.5%, from $31.0 million, or $0.35 per basic and diluted share for the six months ended June 30, 2024. This increase in net income is primarily the result of an increase in net interest income of $12.9 million and a decrease in non-interest expense of $2.1 million, partially offset by an increase in the provision for income taxes of $3.9 million and a decrease in non-interest income of $1.1 million. Also during six month ended June 30, 2025, the company incurred $1.4 million of merger and restructuring costs compared to $0.8 million for the six months end June 2024. Refer to *"Results of Operations"* below for further discussion.

The annualized return on average assets was 0.77% for the three months ended June 30, 2025, compared to 0.57% for the three months ended June 30, 2024. The annualized return on average stockholders' equity was 7.04% for the three months ended June 30, 2025, compared to 5.49% for the three months ended June 30, 2024.

The net interest margin was 3.32% for the three months ended June 30, 2025, up from 3.00% for the three months ended June 30, 2024. The increase in the net interest margin is a result of a decrease of 48 basis points in the Company's cost of interest-bearing liabilities to 3.17% for the three months ended June 30, 2025 from 3.65% for the three months ended June 30, 2024, partially offset by a decrease in the yield on interest-earning assets of 5 basis points to 5.74% for the three months ended June 30, 2025 from 5.79% for the three months ended June 30, 2024.

The net interest margin was 3.27% for the six months ended June 30, 2025, up from 3.03% for the six months ended June 30, 2024. The increase in the net interest margin is a result of a decrease of 38 basis points in the Company's cost of interest bearing liabilities to 3.23% for the six months ended June 30, 2025 from 3.61% for the six months ended June 30, 2024, partially offset by a decrease in the yield on interest-earning assets of 8 basis points to 5.71% for the six months ended June 30, 2025 from 5.79% for the six months ended June 30, 2024.

The Company's net interest margin and net interest income are sensitive to the structure and level of interest rates as well as competitive pricing in all loan and deposit categories.

**Critical Accounting Policies and Estimates**

The SEC defines "critical accounting policies" as those involving significant judgments and difficult or complex assumptions by management, often as a result of the need to make estimates about matters that are inherently uncertain or variable, which have, or could have, a material impact on the carrying value of certain assets or net income. The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, income and expenses, and disclosure of contingent assets and liabilities. Actual results could differ from those estimates. As discussed in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, management has identified the determination of the ACL as the Company's most critical accounting policy.

***Recent Accounting Developments***

In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures" which improves reportable segment disclosure requirements, particularly regarding a reportable segment's expenses. This update is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company adopted ASU 2023-07 as of January 1, 2024. The adoption did not have a material impact on the Company's consolidated financial statements and continues to operate as one reportable segment.

In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures" to enhance the annual income tax disclosure requirements. This update is effective for annual periods beginning after December 15, 2024. Management has determined that ASU 2023-09 does apply to the Company and is currently determining the impact as of June 30, 2025.

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**Non-GAAP Financial Measures and Reconciliation to GAAP**

In addition to evaluating the Company's results of operations in accordance with GAAP, management periodically supplements this evaluation with an analysis of certain non-GAAP financial measures, such as operating earnings metrics, the return on average tangible assets, return on average tangible equity, the tangible stockholders' equity to tangible assets ratio, tangible book value per share, and dividend payout ratio. Management believes that these non-GAAP financial measures provide information useful to investors in understanding the Company's underlying operating performance and trends, and facilitates comparisons with the performance assessment of financial performance, including non-interest expense control, while the tangible equity ratio and tangible book value per share are used to analyze the relative strength of the Company's capital position.

The following table reconciles the Company's operating earnings, operating return on average assets and operating return on average stockholders' equity for the periods indicated:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **At and for the Three Months Ended <br> June 30,** | **At and for the Three Months Ended <br> June 30,** | **At and for the Six Months Ended June 30,** | **At and for the Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** |
| Reported Pretax Income | $29594 | $21645 | $55076 | $41124 |
| &nbsp;&nbsp;&nbsp;Add: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Merger and restructuring expense <sup>(1)</sup> | 439 | 823 | 1410 | 823 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating Pretax Income | $30033 | 22468 | 56486 | 41947 |
| &nbsp;&nbsp;&nbsp;&nbsp;Effective tax rate | 25.3% | 24.4% | 24.8% | 24.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for income taxes | 7590 | 5473 | 14008 | 10289 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating earnings after tax | $22443 | $16995 | $42478 | $31658 |
| Operating earnings per common share: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic | $0.25 | $0.19 | $0.48 | $0.36 |
| &nbsp;&nbsp;&nbsp;Diluted | $0.25 | $0.19 | 0.47 | 0.35 |

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_______________________________________________________________________________

(1) For the three months and six months ended June 30, 2025, merger and restructuring expense was related to the proposed merger transaction with Berkshire expected to close by the end of the second half of 2025. For the three and six months ended June 30, 2024, merger and restructuring expense was related to a non-recurring restructuring charge due to the exit of the specialty vehicle business at Eastern Funding.

The following tables reconcile the Company's return on average tangible assets and return on average tangible stockholders' equity for the periods indicated:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
| | **June 30,<br>2025** | **March 31,<br>2025** | **December 31,<br>2024** | **September 30,<br>2024** | **June 30,<br>2024** |
| | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** |
| Operating earnings | $22443 | $20037 | $20686 | $20142 | $16995 |
| Average total assets | $11402934 | $11543330 | $11580572 | $11451338 | $11453394 |
| &nbsp;&nbsp;&nbsp;Less: Average goodwill and average identified intangible assets, net | 256508 | 257941 | 259496 | 261188 | 262859 |
| Average tangible assets | $11146426 | $11285389 | $11321076 | $11190150 | $11190535 |
| Return on average assets (annualized) | 0.77% | 0.66% | 0.61% | 0.70% | 0.57% |
| Add: |  |  |  |  |  |
| Merger and restructuring expense | 0.01% | 0.03% | 0.09% | —% | 0.02% |
| &nbsp;&nbsp;&nbsp;Operating return on average assets (annualized) | 0.78% | 0.69% | 0.70% | 0.70% | 0.59% |
| Return on average tangible assets (annualized) | 0.79% | 0.68% | 0.62% | 0.72% | 0.59% |
| Add: |  |  |  |  |  |
| Merger and restructuring expense | 0.01% | 0.03% | 0.09% | —% | 0.02% |
| &nbsp;&nbsp;&nbsp;Operating return on average tangible assets (annualized) | 0.80% | 0.71% | 0.71% | 0.72% | 0.61% |
| Average total stockholders' equity | $1252055 | $1235201 | $1232527 | $1216037 | $1193385 |
| &nbsp;&nbsp;&nbsp;Less: Average goodwill and average identified intangible assets, net | 256508 | 257941 | 259496 | 261188 | 262859 |
| Average tangible stockholders' equity | $995547 | $977260 | $973031 | $954849 | $930526 |
| Return on average stockholders' equity (annualized) | 7.04% | 6.19% | 5.69% | 6.63% | 5.49% |
| Add: |  |  |  |  |  |
| Merger and restructuring expense | 0.10% | 0.24% | 0.83% | —% | 0.21% |
| &nbsp;&nbsp;&nbsp;Operating return on average stockholders' equity (annualized) | 7.14% | 6.43% | 6.52% | 6.63% | 5.70% |
| Return on average tangible stockholders' equity (annualized) | 8.85% | 7.82% | 7.21% | 8.44% | 7.04% |
| Add: |  |  |  |  |  |
| Merger and restructuring expense | 0.13% | 0.30% | 1.06% | —% | 0.27% |
| &nbsp;&nbsp;&nbsp;Operating return on average tangible stockholders' equity (annualized) | 8.98% | 8.12% | 8.27% | 8.44% | 7.31% |

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
| | **June 30,<br>2025** | **March 31,<br>2025** | **December 31,<br>2024** | **September 30,<br>2024** | **June 30,<br>2024** |
| | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** |
| Net income, as reported | $22026 | $19100 | $17536 | $20142 | $16372 |
| Average total assets | $11402934 | $11543330 | $11580572 | $11451338 | $11453394 |
| Less: Average goodwill and average identified intangible assets, net | 256508 | 257941 | 259496 | 261188 | 262859 |
| &nbsp;&nbsp;&nbsp;Average tangible assets | $11146426 | $11285389 | $11321076 | $11190150 | $11190535 |
| Return on average tangible assets (annualized) | 0.79% | 0.68% | 0.62% | 0.72% | 0.59% |
| Average total stockholders' equity | $1252055 | $1235201 | $1232527 | $1216037 | $1193385 |
| Less: Average goodwill and average identified intangible assets, net | 256508 | 257941 | 259496 | 261188 | 262859 |
| &nbsp;&nbsp;&nbsp;Average tangible stockholders' equity | $995547 | $977260 | $973031 | $954849 | $930526 |
| Return on average tangible stockholders' equity (annualized) | 8.85% | 7.82% | 7.21% | 8.44% | 7.04% |

---

The following table reconciles the Company's tangible equity ratio for the periods indicated:

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
| | **June 30,<br>2025** | **June 30,<br>2025** | **March 31,<br>2025** | **March 31,<br>2025** | **December 31,<br>2024** | **December 31,<br>2024** | **September 30,<br>2024** | **September 30,<br>2024** | **June 30,<br>2024** | **June 30,<br>2024** |
| | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** |
| Total stockholders' equity | $| 1254171 | $| 1240182 | $| 1221939 | $| 1230362 | $| 1198480 |
| &nbsp;&nbsp;&nbsp;Less: Goodwill and identified intangible assets, net | 255822 | 255822 | 257252 | 257252 | 258683 | 258683 | 260384 | 260384 | 262052 | 262052 |
| &nbsp;&nbsp;&nbsp;Tangible stockholders' equity | $| 998349 | $| 982930 | $| 963256 | $| 969978 | $| 936428 |
| Total assets | $| 11568745 | $| 11519869 | $| 11905326 | $| 11676721 | $| 11635292 |
| &nbsp;&nbsp;&nbsp;Less: Goodwill and identified intangible assets, net | 255822 | 255822 | 257252 | 257252 | 258683 | 258683 | 260384 | 260384 | 262052 | 262052 |
| &nbsp;&nbsp;&nbsp;Tangible assets | $| 11312923 | $| 11262617 | $| 11646643 | $| 11416337 | $| 11373240 |
| Tangible stockholders' equity to tangible assets | 8.82% | 8.82% | 8.73% | 8.73% | 8.27% | 8.27% | 8.50% | 8.50% | 8.23% | 8.23% |

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The following table reconciles the Company's tangible book value per share for the periods indicated:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
| | **June 30,<br>2025** | **March 31,<br>2025** | **December 31,<br>2024** | **September 30,<br>2024** | **June 30,<br>2024** |
| | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** |
| Tangible stockholders' equity | $998349 | $982930 | $963256 | $969978 | $936428 |
| Common shares issued | 96998075 | 96998075 | 96998075 | 96998075 | 96998075 |
| &nbsp;&nbsp;&nbsp;Less: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Treasury shares | 7039136 | 7037610 | 7019384 | 7015843 | 7373009 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unvested restricted stock | 854334 | 855860 | 880248 | 883789 | 713443 |
| Common shares outstanding | 89104605 | 89104605 | 89098443 | 89098443 | 88911623 |
| Tangible book value per share | $11.20 | $11.03 | $10.81 | $10.89 | $10.53 |

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The following table reconciles the Company's dividend payout ratio for the periods indicated:

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
| | **June 30,<br>2025** | **June 30,<br>2025** | **March 31,<br>2025** | **March 31,<br>2025** | **December 31,<br>2024** | **December 31,<br>2024** | **September 30,<br>2024** | **September 30,<br>2024** | **June 30,<br>2024** | **June 30,<br>2024** |
| | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** |
| Dividends paid | $| 12029 | $| 12029 | $| 12028 | $| 12028 | $| 12001 |
| Net income, as reported | $| 22026 | $| 19100 | $| 17536 | $| 20142 | $| 16372 |
| Dividend payout ratio | 54.61% | 54.61% | 62.98% | 62.98% | 68.59% | 68.59% | 59.72% | 59.72% | 73.30% | 73.30% |

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<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

**Financial Condition**

***Loans and Leases***

The following table summarizes the Company's portfolio of loan and lease receivables as of the dates indicated:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **At June 30, 2025** | **At June 30, 2025** | **At December 31, 2024** | **At December 31, 2024** |
| | **Balance** | **Percent<br>of Total** | **Balance** | **Percent<br>of Total** |
| | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** |
| Commercial real estate loans: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial real estate | $3913672 | 40.8% | $4027265 | 41.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Multi-family mortgage | 1401262 | 14.6% | 1387796 | 14.2% |
| &nbsp;&nbsp;&nbsp;&nbsp; Construction | 170612 | 1.8% | 301053 | 3.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total commercial real estate loans | 5485546 | 57.2% | 5716114 | 58.4% |
| Commercial loans and leases: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial | 1303516 | 13.6% | 1211714 | 12.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Equipment financing | 1216831 | 12.7% | 1294950 | 13.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total commercial loans and leases | 2520347 | 26.3% | 2506664 | 25.6% |
| Consumer loans: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential mortgage | 1115504 | 11.6% | 1114732 | 11.4% |
| &nbsp;&nbsp;&nbsp; Home equity | 397479 | 4.2% | 377411 | 3.9% |
| &nbsp;&nbsp;&nbsp; Other consumer | 63498 | 0.7% | 64367 | 0.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total consumer loans | 1576481 | 16.5% | 1556510 | 16.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total loans and leases | 9582374 | 100.0% | 9779288 | 100.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Allowance for loan and lease losses | (126725) |  | (125083) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loans and leases | $9455649 |  | $9654205 |  |

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The following table sets forth the growth in the Company's loan and lease portfolios during the six months ended June 30, 2025:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **At June 30,<br>2025** | **At December 31,<br>2024** | **Dollar Change** | **Percent Change<br>(Annualized)** |
| | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** |
| Commercial real estate | $5485546 | $5716114 | $(230568) | (8.1)% |
| Commercial | 2520347 | 2506664 | 13683 | 1.1% |
| Consumer | 1576481 | 1556510 | 19971 | 2.6% |
| &nbsp;&nbsp;&nbsp;Total loans and leases | $9582374 | $9779288 | $(196914) | (4.0)% |

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The Company's loan portfolio consists primarily of first mortgage loans secured by commercial, multi-family and residential real estate properties located in the Company's primary lending area, loans to business entities, including commercial lines of credit, loans to condominium associations and loans and leases used to finance equipment used by small businesses. The Company also provides financing for construction and development projects, home equity and other consumer loans.

The Company employs seasoned commercial lenders and retail bankers who rely on community and business contacts as well as referrals from customers, attorneys and other professionals to generate loans and deposits. Existing borrowers are also an important source of business since many of them have more than one loan outstanding with the Company. The Company's ability to originate loans depends on the strength of the economy, trends in interest rates, and levels of customer demand and market competition.

The Company's current policy is that a total credit exposure to one obligor relationship may not exceed $60.0 million unless approved by the Company's Credit Committee. As of June 30, 2025, there were five borrowers with loans and commitments over $60.0 million. The total of those loans and commitments was $335.2 million, or 2.92% of total loans and commitments, as of June 30, 2025. As of December 31, 2024, there were four borrowers with loans and commitments over

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$60.0 million. The total of those loans and commitments was $267.3 million, or 2.3% of total loans and commitments, as of December 31, 2024.

The Company has written underwriting policies to control the inherent risks in loan origination. The policies address approval limits, loan-to-value ratios, appraisal requirements, debt service coverage ratios, loan concentration limits and other matters relevant to loan underwriting.

*Commercial Real Estate Loans*

The commercial real estate portfolio is composed of commercial real estate loans, multi-family mortgage loans, and construction loans and is the largest component of the Company's overall loan portfolio, representing 57.2% of total loans and leases outstanding as of June 30, 2025.

Typically, commercial real estate loans are larger in size and involve a greater degree of risk than owner-occupied residential mortgage loans. Loan repayment is usually dependent on the successful operation and management of the properties and the value of the properties securing the loans. Economic conditions can greatly affect cash flows and property values.

A number of factors are considered in originating commercial real estate and multi-family mortgage loans. The qualifications and financial condition of the borrower (including credit history), as well as the potential income generation and the value and condition of the underlying property, are evaluated. When evaluating the qualifications of the borrower, the Company considers the financial resources of the borrower, the borrower's experience in owning or managing similar property and the borrower's payment history with the Company and other financial institutions. Factors considered in evaluating the underlying property include the net operating income of the mortgaged premises before debt service and depreciation, the debt service coverage ratio (the ratio of cash flow before debt service to debt service), the use of conservative capitalization rates, and the ratio of the loan amount to the appraised value. Generally, personal guarantees are obtained from commercial real estate loan borrowers.

Commercial real estate and multi-family mortgage loans are typically originated for terms of five to fifteen years with amortization periods of 20 to 30 years. Many of the loans are priced at inception on a fixed-rate basis generally for periods ranging from two to five years with repricing periods for longer-term loans. When possible, prepayment penalties are included in loan covenants on these loans. For commercial customers who are interested in loans with terms longer than five years, the Company offers loan level derivatives to accommodate customer need.

The Company's urban and suburban market area is characterized by a large number of apartment buildings, condominiums and office buildings. As a result, commercial real estate and multi-family mortgage lending has been a significant part of the Company's activities for many years. These types of loans typically generate higher yields, but also involve greater credit risk. Many of the Company's borrowers have more than one multi-family or commercial real estate loan outstanding with the Company.

The Company's commercial real estate portfolio is composed primarily of loans secured by apartment buildings ($1.3 billion), retail stores ($903.6 million), industrial properties ($788.0 million), office buildings ($713.4 million), mixed-use properties ($483.7 million), lodging services ($189.4 million), and food services ($78.1 million) as of June 30, 2025. At that date, approximately 78.3% of the commercial real estate loans outstanding were secured by properties located in New England; primarily in the Greater Boston and Greater Providence markets, with additional exposure of approximately 15.5% of the commercial real estate loans outstanding were also secured by properties in the State of New York, nearly all of which is in the Lower Hudson Valley region.

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The following table presents the percentage of the Company's commercial real estate loan portfolio by borrower type that is owner and non-owner occupied as of June 30, 2025.

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| | | | |
|:---|:---|:---|:---|
| | **At June 30, 2025** | **At June 30, 2025** | **At June 30, 2025** |
| | **Owner Occupied** | **Non-Owner Occupied** | **Total** |
| Borrower type: |  |  |  |
| &nbsp;&nbsp;Multi-family buildings | —% | 24.0% | 24.0% |
| &nbsp;&nbsp;Retail stores | 2.2% | 14.3% | 16.5% |
| &nbsp;&nbsp;&nbsp;Industrial properties | 2.6% | 11.8% | 14.4% |
| &nbsp;&nbsp;Office buildings | 1.2% | 11.8% | 13.0% |
| &nbsp;&nbsp;&nbsp;Mixed-use properties | 0.9% | 7.6% | 8.5% |
| &nbsp;&nbsp;&nbsp;Lodging services | 0.1% | 3.3% | 3.4% |
| &nbsp;&nbsp;&nbsp;Food Services | 0.8% | 0.6% | 1.4% |
| &nbsp;&nbsp;&nbsp;Other | 10.2% | 8.6% | 18.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 18.0% | 82.0% | 100.0% |

---

The following table presents the percentage of the Company's commercial real estate loan portfolio by geographic concentration that is owner and non-owner occupied as of June 30, 2025.

---

| | | | |
|:---|:---|:---|:---|
| | **At June 30, 2025** | **At June 30, 2025** | **At June 30, 2025** |
| | **Owner Occupied** | **Non-Owner Occupied** | **Total** |
| Geographic concentration: |  |  |  |
| &nbsp;&nbsp;New England | 12.2% | 66.0% | 78.2% |
| &nbsp;&nbsp;New York | 2.6% | 12.9% | 15.5% |
| &nbsp;&nbsp;Other | 3.2% | 3.1% | 6.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 18.0% | 82.0% | 100.0% |

---

Construction and development financing is generally considered to involve a higher degree of risk than long-term financing on improved, occupied real estate and thus has lower concentration limits than do other commercial credit classes. Risk of loss on a construction loan is largely dependent upon the accuracy of the initial estimate of construction costs, the estimated time to sell or rent the completed property at an adequate price or rate of occupancy, and market conditions. If the estimates and projections prove to be inaccurate, the Company may be confronted with a project which, upon completion, has a value that is insufficient to assure full loan repayment.

Criteria applied in underwriting construction loans for which the primary source of repayment is the sale of the property are different from the criteria applied in underwriting construction loans for which the primary source of repayment is the stabilized cash flow from the completed project. For those loans where the primary source of repayment is from resale of the property, in addition to the normal credit analysis performed for other loans, the Company also analyzes project costs, the attractiveness of the property in relation to the market in which it is located and demand within the market area. For those construction loans where the source of repayment is the stabilized cash flow from the completed project, the Company analyzes not only project costs but also how long it might take to achieve satisfactory occupancy and the reasonableness of projected rental rates in relation to market rental rates.

*Commercial Loans*

The Company's commercial loan and lease portfolio is composed of commercial loans & equipment financing loans and leases, which represented 26.3% of total loans outstanding as of June 30, 2025.

The Company's commercial loan and lease portfolio is composed primarily of loans and leases to small to medium sized businesses ($888.3 million), food services ($339.5 million), transportation services ($241.6 million), retail ($146.5 million), manufacturing ($140.2 million), recreation services ($118.5 million), and rental and leasing services ($98.7 million) as of June 30, 2025.

The Company provides commercial banking services to companies in its market areas. Approximately 48.7% of the commercial loans outstanding as of June 30, 2025 were made to borrowers located in New England. The remaining 51.3% of the commercial loans outstanding were made to borrowers in other areas in the U.S., primarily by the Company's equipment

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financing divisions. Product offerings include lines of credit, term loans, letters of credit, deposit services and cash management. These types of credit facilities have as their primary source of repayment cash flows from the operations of businesses. Interest rates offered are available on a floating basis tied to the prime rate or a similar index or on a fixed-rate basis referenced on the FHLB indices.

Credit extensions are made to established businesses on the basis of loan purpose and assessment of capacity to repay as determined by an analysis of their financial statements, the nature of collateral to secure the credit extension and, in most instances, the personal guarantee of the owner of the business as well as industry and general economic conditions.

The Company's equipment financing divisions focus on market niches in which its lenders have deep experience and industry contacts, and on making loans to customers with business experience. An important part of the Company's equipment financing loan origination volume comes from equipment manufacturers, distributors, and owner-operated start-ups as well as existing customers that are expanding their operations. The equipment financing portfolio is composed primarily of loans to finance vended-laundry, and to a lesser degree larger industrial laundries, tow trucks, fitness, and convenience/grocery stores. Typically, the loans are priced at a fixed rate of interest and require monthly payments over their 5- to 10-year life. The yields earned on equipment financing loans are higher than those earned on the commercial loans made by the Banks because they involve a higher degree of credit risk. Equipment financing customers are typically small-business owners who operate with limited financial resources and who face greater risks when the economy weakens or unforeseen adverse events arise. Because of these characteristics, personal guarantees of borrowers are usually obtained along with liens on available assets. The size of loan is determined by an analysis of cash flow and other characteristics pertaining to the business and the equipment to be financed, based on detailed revenue and profitability data of similar operations.

*Consumer Loans*

The consumer loan portfolio, which is composed of residential mortgage loans, home equity loans and lines of credit, and other consumer loans, represented 16.5% of total loans outstanding as of June 30, 2025. The Company focuses its mortgage and home equity lending on existing and new customers within its branch networks in its urban and suburban marketplaces in the Greater Boston and Providence metropolitan areas along with the Lower Hudson Valley area of New York.

The Company originates adjustable- and fixed-rate residential mortgage loans secured by one- to four-family residences. Each residential mortgage loan granted is subject to a satisfactorily completed application, employment verification, credit history and a demonstrated ability to repay the debt. Generally, loans are not made when the loan-to-value ratio exceeds 80% unless private mortgage insurance is obtained and/or there is a financially strong guarantor. Appraisals are performed by outside independent fee appraisers.

Underwriting guidelines for home equity loans and lines of credit are similar to those for residential mortgage loans. Home equity loans and lines of credit are limited to no more than 80% of the appraised value of the property securing the loan including the amount of any existing first mortgage liens.

Other consumer loans have historically been a modest part of the Company's loan originations. As of June 30, 2025, other consumer loans equaled $63.5 million, or 0.7% of total loans outstanding.

**Asset Quality**

***Criticized and Classified Assets***

The Company's management rates certain loans and leases as OAEM, "substandard" or "doubtful" based on criteria established under banking regulations. These loans and leases are collectively referred to as "criticized" assets. Loans and leases rated OAEM have potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects of the loan or lease at some future date. Loans and leases rated as substandard are inadequately protected by the payment capacity of the obligor or of the collateral pledged, if any. Substandard loans and leases have a well-defined weakness or weaknesses that jeopardize the liquidation of debt and are characterized by the distinct possibility that the Company will sustain some loss if existing deficiencies are not corrected. Loans and leases rated as doubtful have well-defined weaknesses that jeopardize the orderly liquidation of debt and partial loss of principal is likely. As of June 30, 2025, the Company had $328.6 million of total assets that were designated as criticized. This compares to $252.7 million of assets designated as criticized as of December 31, 2024. The increase of $75.9 million in criticized assets was primarily driven by increases in commercial real estate, construction, equipment financing, and commercial relationships, partially offset by a decrease in multi-family relationships, for the six months ended June 30, 2025.

***Nonperforming Assets***

"Nonperforming assets" consist of nonaccrual loans and leases, OREO and other repossessed assets. Under certain circumstances, the Company may restructure the terms of a loan or lease as a concession to a borrower, except for acquired

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loans and leases which are individually evaluated against expected performance on the date of acquisition. These restructured loans and leases are generally considered "nonperforming loans and leases" until a history of collection of at least six months on the restructured terms of the loan or lease has been established. OREO consists of real estate acquired through foreclosure proceedings and real estate acquired through acceptance of a deed in lieu of foreclosure. Other repossessed assets consist of assets that have been acquired through foreclosure that are not real estate and are included in other assets on the Company's unaudited consolidated balance sheets.

Accrual of interest on loans generally is discontinued when contractual payment of principal or interest becomes past due 90 days or, if in management's judgment, reasonable doubt exists as to the full timely collection of interest. When a loan is placed on nonaccrual status, interest accruals cease and all previously accrued and uncollected interest is reversed and charged against current interest income. Interest payments on nonaccrual loans are generally applied to principal. If collection of the principal is reasonably assured, interest payments are recognized as income on the cash basis. Loans are generally returned to accrual status when principal and interest payments are current, full collectability of principal and interest is reasonably assured and a consistent record of at least six months of performance has been achieved.

In cases where a borrower experiences financial difficulties and the Company makes or reasonably expects to make certain concessionary modifications to contractual terms, the loan is classified as a modified loan. In determining whether a debtor is experiencing financial difficulties, the Company considers, among other factors, if the debtor is in payment default or is likely to be in payment default in the foreseeable future without the modification, the debtor declared or is in the process of declaring bankruptcy, there is substantial doubt that the debtor will continue as a going concern, the debtor's entity-specific projected cash flows will not be sufficient to service its debt, or the debtor cannot obtain funds from sources other than the existing creditors at market terms for debt with similar risk characteristics.

As of June 30, 2025, the Company had nonperforming assets of $63.6 million, representing 0.55% of total assets, compared to nonperforming assets of $70.5 million, or 0.59% of total assets as of December 31, 2024. The decrease of $6.9 million in nonperforming assets was primarily driven by decreases of $10.5 million in commercial real estate loans, $6.0 million in commercial loans, and $5.2 in multi-family loans, partially offset by increases of $14.6 million in equipment financing loans during the six months ended June 30, 2025.

The Company evaluates the underlying collateral of each nonaccrual loan and lease and continues to pursue the collection of interest and principal. Management believes that the current level of nonperforming assets remains manageable relative to the size of the Company's loan and lease portfolio. If economic conditions were to worsen or if the marketplace were to experience prolonged economic stress, it is likely that the level of nonperforming assets would increase, as would the level of charged-off loans.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

***Past Due and Accruing***

As of June 30, 2025, the Company had $24.9 million loans and leases greater than 90 days past due and accruing, compared to $0.8 million loans as of December 31, 2024. The $24.1 million increase was primarily driven by loans in the process of renewal or refinancing out of the bank, of which $23.3 million is in commercial real estate loans and $1.0 million is in commercial loans, partially offset by a decrease of $0.2 million in consumer loans.

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The following table sets forth information regarding nonperforming assets for the periods indicated:

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| | | |
|:---|:---|:---|
| | **At June 30, 2025** | **At December 31, 2024** |
| | **(Dollars in Thousands)** | **(Dollars in Thousands)** |
| Nonperforming loans and leases: |  |  |
| &nbsp;&nbsp;&nbsp;Nonaccrual loans and leases: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial real estate | $987 | $11525 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Multi-family mortgage | 1433 | 6596 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Construction |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total commercial real estate loans | 2420 | 18121 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial | 8687 | 14676 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equipment financing | 46067 | 31509 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total commercial loans and leases | 54754 | 46185 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Residential mortgage | 3572 | 3999 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Home equity | 1561 | 1043 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other consumer | 1 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total consumer loans | 5134 | 5043 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total nonaccrual loans and leases | 62308 | 69349 |
| Other real estate owned | 700 | 700 |
| Other repossessed assets | 588 | 403 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total nonperforming assets | $63596 | $70452 |
| &nbsp;&nbsp;&nbsp;Loans and leases past due greater than 90 days and accruing | $24899 | $811 |
| &nbsp;&nbsp;&nbsp;Total delinquent loans and leases 61-90 days past due | 8050 | 6119 |
| &nbsp;&nbsp;&nbsp;Total nonperforming loans and leases as a percentage of total loans and leases | 0.65% | 0.71% |
| &nbsp;&nbsp;&nbsp;Total nonperforming assets as a percentage of total assets | 0.55% | 0.59% |
| &nbsp;&nbsp;&nbsp;Total delinquent loans and leases 61-90 days past due as a percentage of total loans and leases | 0.08% | 0.06% |

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**Allowance for Credit Losses**

The ACL consists of general and specific allowances and reflects management's estimate of expected loan and lease losses over the life of the loan or lease. Management uses a consistent and systematic process and methodology to evaluate the adequacy of the ACL on a quarterly basis. Management continuously evaluates and challenges inputs and assumptions in the ACL.

While management evaluates currently available information in establishing the ACL, future adjustments to the allowance for loan and lease losses may be necessary if conditions differ substantially from the assumptions used in making the evaluations. Management performs a comprehensive review of the ACL on a quarterly basis. In addition, various regulatory agencies, as an integral part of their examination process, periodically review a financial institution's ACL and carrying amounts of OREO. Such agencies may require the financial institution to recognize additions or reductions to the allowance based on their judgments about information available to them at the time of their examination.

The Company's allowance methodology provides a quantification of estimated losses in the portfolio. Under the current methodology, management estimates losses over the life of the loan using reasonable and supportable forecasts. Forecasts, loan data, and model documentation are extensively analyzed and reviewed throughout the quarter to ensure estimated losses are appropriate at quarter end. Qualitative adjustments are applied when model output does not align with management

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expectations. These adjustments are thoroughly reviewed and documented to provide clarity and a reasonable basis for any deviations from the model. For June 30, 2025, qualitative adjustments were applied to the commercial real estate, commercial, and consumer portfolios resulting in a net addition in total reserves compared to modeled calculations.

The following tables present the changes in the allowance for loan and lease losses by portfolio category for the three and six months ended June 30, 2025 and 2024.

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| | | | | |
|:---|:---|:---|:---|:---|
| | **At and for the Three Months Ended June 30, 2025** | **At and for the Three Months Ended June 30, 2025** | **At and for the Three Months Ended June 30, 2025** | **At and for the Three Months Ended June 30, 2025** |
| | **Commercial<br>Real Estate** | **Commercial** | **Consumer** | **Total** |
| | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** |
| Balance at March 31, 2025 | $73999 | $43356 | $6790 | $124145 |
| &nbsp;&nbsp;&nbsp;Charge-offs | (3524) | (2067) | (10) | (5601) |
| &nbsp;&nbsp;&nbsp;Recoveries |  | 427 | 47 | 474 |
| &nbsp;&nbsp;&nbsp;Provision (credit) for loan and lease losses | 2640 | 4753 | 314 | 7707 |
| Balance at June 30, 2025 | $73115 | $46469 | $7141 | $126725 |
| Total loans and leases | $5485546 | $2520347 | $1576481 | $9582374 |
| &nbsp;&nbsp;&nbsp;Total allowance for loan and lease losses as a percentage of total loans and leases | 1.33% | 1.84% | 0.45% | 1.32% |

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| | | | | |
|:---|:---|:---|:---|:---|
| | **At and for the Three Months Ended June 30, 2024** | **At and for the Three Months Ended June 30, 2024** | **At and for the Three Months Ended June 30, 2024** | **At and for the Three Months Ended June 30, 2024** |
| | **Commercial<br>Real Estate** | **Commercial** | **Consumer** | **Total** |
| | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** |
| Balance at March 31, 2024 | $83475 | $30417 | $6232 | $120124 |
| &nbsp;&nbsp;&nbsp;Charge-offs | (3819) | (4998) | (6) | (8823) |
| &nbsp;&nbsp;&nbsp;Recoveries |  | 427 | 9 | 436 |
| &nbsp;&nbsp;&nbsp;Provision (credit) for loan and lease losses | 2496 | 7540 | (23) | 10013 |
| Balance at June 30, 2024 | $82152 | $33386 | $6212 | $121750 |
| Total loans and leases | $5782111 | $2443530 | $1495496 | $9721137 |
| &nbsp;&nbsp;&nbsp;Total allowance for loan and lease losses as a percentage of total loans and leases | 1.42% | 1.37% | 0.42% | 1.25% |

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| | | | | |
|:---|:---|:---|:---|:---|
| | **At and for the Six Months Ended June 30, 2025** | **At and for the Six Months Ended June 30, 2025** | **At and for the Six Months Ended June 30, 2025** | **At and for the Six Months Ended June 30, 2025** |
| | **Commercial<br>Real Estate** | **Commercial** | **Consumer** | **Total** |
| | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** |
| Balance at December 31, 2024 | $74171 | $44169 | $6743 | $125083 |
| &nbsp;&nbsp;&nbsp;Charge-offs | (3524) | (11136) | (14) | (14674) |
| &nbsp;&nbsp;&nbsp;Recoveries |  | 1849 | 101 | 1950 |
| &nbsp;&nbsp;&nbsp;Provision (credit) for loan and lease losses | 2468 | 11587 | 311 | 14366 |
| Balance at June 30, 2025 | $73115 | $46469 | $7141 | $126725 |
| Total loans and leases | $5485546 | $2520347 | $1576481 | $9582374 |
| &nbsp;&nbsp;&nbsp;Total allowance for loan and lease losses as a percentage of total loans and leases | 1.33% | 1.84% | 0.45% | 1.32% |

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| | | | | |
|:---|:---|:---|:---|:---|
| | **At and for the Six Months Ended June 30, 2024** | **At and for the Six Months Ended June 30, 2024** | **At and for the Six Months Ended June 30, 2024** | **At and for the Six Months Ended June 30, 2024** |
| | **Commercial<br>Real Estate** | **Commercial** | **Consumer** | **Total** |
| | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** |
| Balance at December 31, 2023 | $81410 | $29557 | $6555 | $117522 |
| &nbsp;&nbsp;&nbsp;Charge-offs | (4425) | (9769) | (19) | (14213) |
| &nbsp;&nbsp;&nbsp;Recoveries |  | 719 | 26 | 745 |
| &nbsp;&nbsp;&nbsp;Provision (credit) for loan and lease losses | 5167 | 12879 | (350) | 17696 |
| Balance at June 30, 2024 | $82152 | $33386 | $6212 | $121750 |
| Total loans and leases | $5782111 | $2443530 | $1495496 | $9721137 |
| &nbsp;&nbsp;&nbsp;Total allowance for loan and lease losses as a percentage of total loans and leases | 1.42% | 1.37% | 0.42% | 1.25% |

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At June 30, 2025, the allowance for loan and lease losses increased to $126.7 million, or 1.32% of total loans and leases outstanding. This compared to an allowance for loan and lease losses of $125.1 million, or 1.28% of total loans and leases outstanding, as of December 31, 2024.

Net charge-offs on loans and leases for the three months ended June 30, 2025 and 2024 were $5.1 million and $8.4 million, respectively. As a percentage of average loans and leases, annualized net charge-offs for the three months ended June 30, 2025 and 2024 were 0.21% and 0.35%, respectively. The year over year decrease in net charge-offs was primarily due to decreases in net charge-offs of $2.6 million in equipment financing loans, $0.3 million in commercial loans, and $0.3 million in commercial real estate loans.

As of June 30, 2025, the Company had $95.8 million loans and leases delinquent more than 30 days, compared to $73.9 million loans as of December 31, 2024. The increase of $21.9 was primary driven by loans in the process of renewals or refinancing out of the bank and therefore did not have a material impact on the allowance for quarter end."

The following table sets forth the Company's percent of allowance for loan and lease losses to the total allowance for loan and lease losses, and the percent of loans to total loans for each of the categories listed at the dates indicated.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **At June 30, 2025** | **At June 30, 2025** | **At June 30, 2025** | **At December 31, 2024** | **At December 31, 2024** | **At December 31, 2024** |
| | **Amount** | **Percent of<br>Allowance in Each Category <br>to Total<br>Allowance** | **Percent of<br>Loans<br>in Each<br>Category to<br>Total<br>Loans** | **Amount** | **Percent of<br>Allowance in Each Category <br>to Total Allowance** | **Percent of<br>Loans<br>in Each<br>Category to<br>Total<br>Loans** |
| | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** |
| Commercial real estate | $53648 | 42.3% | 40.8% | $52638 | 42.0% | 41.1% |
| Multi-family mortgage | 15283 | 12.1% | 14.6% | 15234 | 12.2% | 14.2% |
| Construction | 4184 | 3.3% | 1.8% | 6299 | 5.0% | 3.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total commercial real estate loans | 73115 | 57.7% | 57.2% | 74171 | 59.2% | 58.4% |
| Commercial | 16344 | 12.9% | 13.6% | 15555 | 12.4% | 12.4% |
| Equipment financing | 30125 | 23.8% | 12.7% | 28614 | 22.9% | 13.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total commercial loans | 46469 | 36.7% | 26.3% | 44169 | 35.3% | 25.6% |
| Residential mortgage | 3303 | 2.6% | 11.6% | 3067 | 2.5% | 11.4% |
| Home equity | 3021 | 2.4% | 4.2% | 2851 | 2.3% | 3.9% |
| Other consumer | 817 | 0.6% | 0.7% | 825 | 0.7% | 0.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total consumer loans | 7141 | 5.6% | 16.5% | 6743 | 5.5% | 16.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $126725 | 100.0% | 100.0% | $125083 | 100.0% | 100.0% |

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Management believes that the allowance for loan and lease losses as of June 30, 2025 is appropriate.

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**Investment Securities**

The investment portfolio exists primarily for liquidity purposes, and secondarily as a source of interest and dividend income, interest-rate risk management and tax planning as a counterbalance to loan and deposit flows. Investment securities are utilized as part of the Company's asset/liability management and may be sold in response to, or in anticipation of, factors such as changes in market conditions and interest rates, security prepayment rates, deposit outflows, liquidity concentrations and regulatory capital requirements.

The investment policy of the Company, which is reviewed and approved by the Board of Directors on an annual basis, specifies the types of investments that are acceptable, required investment ratings by at least one nationally recognized rating agency, concentration limits and duration guidelines. Compliance with the investment policy is monitored on a regular basis. In general, the Company seeks to maintain a high degree of liquidity and targets cash, cash equivalents and investment securities available-for-sale balances between 10% and 12% of total assets.

Cash, cash equivalents, and investment securities decreased $65.3 million to $1.37 billion as of June 30, 2025, from $1.44 billion December 31, 2024. The decrease was driven by a decrease in cash and due from banks and investment securities. Cash, cash equivalents, and investment securities were 11.9% of total assets as of June 30, 2025, compared to 12.1% of total assets at December 31, 2024.

The following table sets forth certain information regarding the amortized cost and market value of the Company's investment securities at the dates indicated:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **At June 30, 2025** | **At June 30, 2025** | **At December 31, 2024** | **At December 31, 2024** |
| | **Amortized<br>Cost** | **Fair Value** | **Amortized<br>Cost** | **Fair Value** |
| | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** |
| &nbsp;&nbsp;&nbsp;Investment securities available-for-sale: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;GSE debentures | $191885 | $177685 | $195099 | $176294 |
| &nbsp;&nbsp;&nbsp;GSE CMOs | 60498 | 54067 | 62567 | 55543 |
| &nbsp;&nbsp;&nbsp;GSE MBSs | 155443 | 141187 | 166843 | 148285 |
| &nbsp;&nbsp;&nbsp;Municipal obligations | 19229 | 18946 | 20526 | 20254 |
| &nbsp;&nbsp;&nbsp;Corporate debt obligations | 12205 | 12226 | 12140 | 12287 |
| &nbsp;&nbsp;&nbsp;U.S. Treasury bonds | 478139 | 462073 | 506714 | 481872 |
| &nbsp;&nbsp;&nbsp;Foreign government obligations | 500 | 500 | 500 | 499 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investment securities available-for-sale | $917899 | $866684 | $964389 | $895034 |

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The fair value of investment securities is based principally on market prices and dealer quotes received from third-party, nationally-recognized pricing services for identical investment securities such as U.S. Treasury and agency securities. The Company's marketable equity securities are priced this way and are included in Level 1 of the fair value hierarchy in accordance with the "Fair Value Measurements and Disclosures" Topic of the FASB, or ASC 820. These prices are validated by comparing the primary pricing source with an alternative pricing source when available. When quoted market prices for identical securities are unavailable, the Company uses market prices provided by independent pricing services based on recent trading activity and other observable information, including but not limited to market interest-rate curves, referenced credit spreads and estimated prepayment speeds where applicable. These investments include certain U.S. and government agency debt securities, municipal and corporate debt securities, GSE residential MBSs and CMOs, all of which are included in Level 2. Certain fair values are estimated using pricing models and are included in Level 3.

Additionally, management reviews changes in fair value from period to period and performs testing to ensure that prices received from the third parties are consistent with their expectation of the market. Changes in the prices obtained from the pricing service are analyzed from month to month, taking into consideration changes in market conditions including changes in mortgage spreads, changes in U.S. Treasury security yields and changes in generic pricing of 15-year and 30-year securities. Additional analysis may include a review of prices provided by other independent parties, a yield analysis, a review of average life changes using Bloomberg analytics and a review of historical pricing for the particular security.

Maturities, calls and principal repayments for investment securities available-for-sale totaled $60.7 million for the six months ended June 30, 2025 compared to $94.9 million for the same period in 2024. For the six months ended June 30, 2025 and 2024, the Company did not sell any investment securities available-for-sale. For the six months ended June 30, 2025, the

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Company purchased $11.7 million of investment securities available-for-sale, compared to $41.1 million for the same period in 2024.

As of June 30, 2025, the fair value of all investment securities available-for-sale was $866.7 million with $51.2 million of net unrealized losses, compared to a fair value of $895.0 million and net unrealized losses of $69.4 million as of December 31, 2024. As of June 30, 2025, $594.9 million, or 68.6%, of the portfolio, had gross unrealized losses of $53.5 million. This compares to $705.3 million, or 78.8%, of the portfolio with gross unrealized losses of $70.2 million as of December 31, 2024. The Company's unrealized loss position decreased in 2025 primarily driven by a decrease in current market rates.

**Restricted Equity Securities**

*FHLB of Boston and FHLB of New York Stock*—The Company invests in the stock of the FHLB of Boston and FHLB of New York as a requirement to borrow funds from the FHLB. As of June 30, 2025, the Company owned stock in the FHLBs with a carrying value of $44.4 million, a decrease of $16.7 million from $61.1 million as of December 31, 2024.

*Federal Reserve Bank Stock*—The Company invests in the stock of the Federal Reserve Bank of Boston and the Federal Reserve Bank of New York as a condition of the Banks' membership in the Federal Reserve System. As of June 30, 2025 and December 31, 2024, the Company owned stock in the Federal Reserve Banks with a carrying value of $21.9 million.

*Other Stock*—The Company invests in a small number of other restricted equity securities, primarily AFX. As of June 30, 2025, the Company owned stock in other restricted equity securities with a carrying value of $0.2 million, unchanged from December 31, 2024.

**Deposits**

The following table presents the Company's deposit mix at the dates indicated.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **At June 30, 2025** | **At June 30, 2025** | **At June 30, 2025** | **At December 31, 2024** | **At December 31, 2024** | **At December 31, 2024** |
| | **Amount** | **Percent<br>of Total** | **Weighted<br>Average<br>Rate** | **Amount** | **Percent<br>of Total** | **Weighted<br>Average<br>Rate** |
| | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** |
| &nbsp;&nbsp;&nbsp;Non-interest-bearing deposits: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Demand checking accounts | $1726933 | 19.3% | —% | $1692394 | 19.0% | —% |
| &nbsp;&nbsp;&nbsp;Interest-bearing deposits: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW accounts | 650707 | 7.3% | 0.62% | 617246 | 6.9% | 0.57% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Savings accounts | 1795761 | 20.0% | 2.41% | 1721247 | 19.3% | 4.40% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Money market accounts | 2153709 | 24.0% | 2.61% | 2116360 | 23.8% | 2.58% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certificate of deposit accounts | 1877661 | 21.0% | 3.79% | 1885444 | 21.2% | 4.30% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Brokered deposit accounts | 756431 | 8.4% | 4.31% | 868953 | 9.8% | 4.42% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing deposits | 7234269 | 80.7% | 2.86% | 7209250 | 81.0% | 3.51% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deposits | $8961202 | 100.0% | 2.31% | $8901644 | 100.0% | 2.85% |

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Total deposits increased $59.6 million to $8.96 billion as of June 30, 2025, compared to $8.90 billion as of December 31, 2024. Deposits as a percentage of total assets was 77.5% and 74.8% as of June 30, 2025 and December 31, 2024, respectively.

During the six months ended June 30, 2025, core deposits increased $179.9 million. The ratio of core deposits to total deposits increased to 70.6% as of June 30, 2025 from 69.1% as of December 31, 2024, due to increased balance in all core deposit accounts.

Certificate of deposit accounts as of June 30, 2025 and December 31, 2024 were $1.9 billion. Certificate of deposit accounts decreased as a percentage of total deposits to 21.0% as of June 30, 2025 from 21.2% as of December 31, 2024.

Brokered deposits decreased $112.5 million to $756.4 million as of June 30, 2025, compared to $869.0 million as of December 31, 2024. Brokered deposits decreased as a percentage of total deposits to 8.4% as of June 30, 2025 from 9.8% as of December 31, 2024. Brokered deposits allow the Company to seek additional funding by attracting deposits from outside the Company's core market. The Company's investment policy limits the total amount of brokered deposits the Company may hold to 15% of total assets.

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<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

The following table sets forth the distribution of the average balances of the Company's deposit accounts for the periods indicated and the weighted average interest rates on each category of deposits presented. Averages for the periods presented are based on daily balances.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** |
| | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
| | **Average<br>Balance** | &nbsp;&nbsp;**Percent<br>of Total<br>Average<br>Deposits** | **Weighted<br>Average<br>Rate** | **Average<br>Balance** | **Percent<br>of Total<br>Average<br>Deposits** | **Weighted<br>Average<br>Rate** |
| | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** |
| Core deposits: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-interest-bearing demand checking accounts | $1654594 | 18.6% | —% | $1646869 | 18.9% | —% |
| &nbsp;&nbsp;&nbsp;&nbsp;NOW accounts | 637786 | 7.2% | 0.65% | 659351 | 7.6% | 0.68% |
| &nbsp;&nbsp;&nbsp;&nbsp;Savings accounts | 1780838 | 20.0% | 2.41% | 1731388 | 19.9% | 2.76% |
| &nbsp;&nbsp;&nbsp;&nbsp;Money market accounts | 2189373 | 24.6% | 2.56% | 2026780 | 23.1% | 3.08% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total core deposits | 6262591 | 70.4% | 1.64% | 6064388 | 69.5% | 1.88% |
| &nbsp;&nbsp;&nbsp;&nbsp;Certificate of deposit accounts | 1879749 | 21.2% | 3.93% | 1699510 | 19.5% | 4.43% |
| &nbsp;&nbsp;&nbsp;&nbsp;Brokered deposit accounts | 748205 | 8.4% | 4.57% | 958146 | 11.0% | 5.25% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deposits | $8890545 | 100.0% | 2.37% | $8722044 | 100.0% | 2.74% |

---

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
| | **Average<br>Balance** | **Percent<br>of Total<br>Average<br>Deposits** | **Weighted<br>Average<br>Rate** | **Average<br>Balance** | **Percent<br>of Total<br>Average<br>Deposits** | **Weighted<br>Average<br>Rate** |
| | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** |
| Core deposits: |  |  |  |  |  |  |
| &nbsp;&nbsp; Non-interest-bearing demand checking accounts | $1667489 | 18.8% | —% | $1635690 | 18.9% | —% |
| &nbsp;&nbsp;&nbsp;NOW accounts | 633092 | 7.1% | 0.65% | 665632 | 7.7% | 0.72% |
| &nbsp;&nbsp;&nbsp;Savings accounts | 1762366 | 19.8% | 2.39% | 1712804 | 19.8% | 2.73% |
| &nbsp;&nbsp; Money market accounts | 2188482 | 24.5% | 2.54% | 2051542 | 23.7% | 3.09% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total core deposits | 6251429 | 70.2% | 1.62% | 6065668 | 70.1% | 1.88% |
| &nbsp;&nbsp;Certificate of deposit accounts | 1883049 | 21.2% | 4.07% | 1661814 | 19.2% | 4.28% |
| &nbsp;&nbsp;Brokered deposit accounts | 757687 | 8.6% | 4.70% | 927465 | 10.7% | 5.23% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total deposits | $8892165 | 100.0% | 2.39% | $8654947 | 100.0% | 2.69% |

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<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

As of June 30, 2025 and December 31, 2024, the Company had outstanding certificates of deposit of $250,000 or more, maturing as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **At June 30, 2025** | **At June 30, 2025** | **At December 31, 2024** | **At December 31, 2024** |
| | **Amount** | **Weighted<br>Average Rate** | **Amount** | **Weighted<br>Average Rate** |
| | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** |
| Maturity period: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Six months or less | 395283 | 4.03% | 443944 | 4.63% |
| &nbsp;&nbsp;&nbsp;Over six months through 12 months | 180928 | 3.73% | 143238 | 4.22% |
| &nbsp;&nbsp;&nbsp;Over 12 months | 30295 | 3.90% | 26044 | 3.86% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total certificates of deposit of $250,000 or more | $606506 | 3.94% | $613226 | 4.50% |

---

The following table presents the Company's insured and uninsured deposit mix at the date indicated.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **At June 30, 2025** | **At June 30, 2025** | **At June 30, 2025** | **At June 30, 2025** | **At June 30, 2025** | **At June 30, 2025** |
| | **(Dollars in Millions)** | **(Dollars in Millions)** | **(Dollars in Millions)** | **(Dollars in Millions)** | **(Dollars in Millions)** | **(Dollars in Millions)** |
| | **Commercial** | **Consumer** | **Municipal** | **Brokered** | **Total** | **%** |
| Insured or Collateralized | $2386 | $3101 | $245 | $756 | $6488 | 72% |
| Uninsured | 1371 | 1075 | 27 |  | 2473 | 28% |
| Total | $3757 | $4176 | $272 | $756 | $8961 | 100% |
| Composition | 42% | 47% | 3% | 8% | 100% |  |

---

As of June 30, 2025, the Company had uninsured municipal deposits requiring collateral of $92.0 million, included in Insured or Collateralized in the table above, which are covered by specific collateral and FHLB letters of credit. The remaining deposits, included in Insured or Collateralized in the table above, are insured with the FDIC or via reciprocal products.

**Borrowed Funds**

The following table sets forth certain information regarding advances from the FHLB, subordinated debentures and notes and other borrowed funds for the periods indicated:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended <br> June 30,** | **Three Months Ended <br> June 30,** | **Six Months Ended <br> June 30,** | **Six Months Ended <br> June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** |
| Borrowed funds: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Average balance outstanding | $1034865 | $1237603 | $1098736 | $1289700 |
| &nbsp;&nbsp;&nbsp;Maximum amount outstanding at any month-end during the period | 1155051 | 1429462 | 1192874 | 1429462 |
| &nbsp;&nbsp;&nbsp;Balance outstanding at end of period | 1155051 | 1429462 | 1155051 | 1429462 |
| &nbsp;&nbsp;&nbsp;Weighted average interest rate for the period | 4.86% | 5.00% | 4.91% | 5.00% |
| &nbsp;&nbsp;&nbsp;Weighted average interest rate at end of period | 4.77% | 5.12% | 4.77% | 5.12% |

---

***Advances from the FHLB***

The Company uses FHLB borrowings and other wholesale borrowings as part of the Company's overall strategy to fund loan growth and manage interest rate risk and liquidity. The advances are secured by a blanket security agreement which requires the Banks to maintain certain qualifying assets as collateral, principally mortgage loans and securities in an aggregate amount at least equal to outstanding advances. The maximum amount that the FHLB will advance to member institutions, including the Company, fluctuates from time to time in accordance with the policies of the FHLB.

FHLB borrowings decreased $421.3 million to $0.9 billion as of June 30, 2025 with a total capacity of $2.8 billion. As of December 31, 2024, FHLB borrowings stood at $1.4 billion.

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<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

***Subordinated Debentures and Notes***

As part of the acquisition of BankRI, the Company acquired two $5.0 million subordinated debentures due on June 26, 2033 and March 17, 2034, respectively. The Company is obligated to pay 3-month CME term SOFR plus spread adjustment of 0.26% plus 3.10% and 3-month CME term SOFR plus spread adjustment of 0.26% plus 2.79%, respectively, on a quarterly basis until the debentures mature.

The Company sold $75.0 million of 6.0% fixed-to-floating rate subordinated notes due September 15, 2029. The Company was obligated to pay 6.0% interest semiannually between September 2014 and September 2024. Subsequently, the Company is obligated to pay 3-month CME term SOFR plus spread adjustment of 0.26% plus 3.32% quarterly until the notes mature in September 2029.

The following table summarizes the Company's subordinated debentures and notes at the dates indicated.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | | | **Carrying Amount** | **Carrying Amount** |
|<br>**Issue Date** |<br>**Rate** |<br>**Maturity Date** |<br>**Next Call Date** | **June 30,<br>2025** | **December 31, 2024** |
| | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** |
| June 26, 2003 | Variable; <br>3-month CME term SOFR + spread adjustment of 0.26% + 3.10% | June 26, 2033 | September 26, 2025 | $4928 | $4920 |
| March 17, 2004 | Variable; <br>3-month CME term SOFR + spread adjustment of 0.26% + 2.79% | March 17, 2034 | September 17, 2025 | 4891 | 4880 |
| September 15, 2014 | Variable; <br>3-month CME term SOFR + spread adjustment of 0.26% + 3.32% | September 15, 2029 | September 16, 2025 | 74578 | 74528 |
|  |  |  | Total | $84397 | $84328 |

---

The above carrying amounts of the subordinated debentures included $0.2 million of accretion adjustments and $0.4 million of capitalized debt issuance costs as of June 30, 2025. This compares to $0.2 million of accretion adjustments and $0.5 million of capitalized debt issuance costs as of December 31, 2024.

***Other Borrowed Funds***

In addition to advances from the FHLB and subordinated debentures and notes, the Company utilizes other funding sources as part of the overall liquidity strategy. Those funding sources include repurchase agreements, and committed and uncommitted lines of credit with several financial institutions.

The Company has access to a $30.0 million committed line of credit as of June 30, 2025. As of June 30, 2025 and December 31, 2024, the Company did not have any borrowings on this committed line of credit.

As of June 30, 2025, the Banks also have access to funding through certain uncommitted lines via AFX as well as other large financial institution specific lines. As of June 30, 2025, the Company had $100.0 million borrowings on outstanding uncommitted lines of credit. This compares to no borrowings on outstanding uncommitted lines of credit as of December 31, 2024.

As of June 30, 2025, the Company had $36.0 million in interest-bearing cash received on collateral from dealer counterparties. This compares to $79.6 million outstanding as of December 31, 2024. This cash collateralizes the fair value of the dealer side of derivative transactions.

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<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

**Derivative Financial Instruments**

The Company has entered into loan level derivatives, risk participation agreements, and foreign exchange contracts with certain of its commercial customers and concurrently enters into offsetting swaps with third-party financial institutions. The Company may also, from time to time, enter into risk participation agreements. The Company uses interest rate futures that are designated and qualify as cash flow hedging instruments.

The following table summarizes certain information concerning the Company's loan level derivatives, interest rate derivatives, risk participation agreements, and foreign exchange contracts at June 30, 2025 and December 31, 2024:

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| | | |
|:---|:---|:---|
| | **At June 30, 2025** | **At December 31, 2024** |
| | **(Dollars in Thousands)** | **(Dollars in Thousands)** |
| Interest rate derivatives (Notional amounts): | $225000 | $225000 |
| Loan level derivatives (Notional principal amounts): |  |  |
| &nbsp;&nbsp;&nbsp;Receive fixed, pay variable | $1425875 | $1672948 |
| &nbsp;&nbsp;&nbsp;Pay fixed, receive variable | 1425875 | 1672948 |
| &nbsp;&nbsp;&nbsp;Risk participation-out agreements | 430619 | 539731 |
| &nbsp;&nbsp;&nbsp;Risk participation-in agreements | 100934 | 102198 |
| Foreign exchange contracts (Notional amounts): |  |  |
| &nbsp;&nbsp;&nbsp;Buys foreign currency, sells U.S. currency | $5560 | $5849 |
| &nbsp;&nbsp;&nbsp;Sells foreign currency, buys U.S. currency | 5105 | 5408 |
| Fixed weighted average interest rate from the Company to counterparty | 3.04% | 3.03% |
| Floating weighted average interest rate from counterparty to the Company | 4.61% | 4.81% |
| Weighted average remaining term to maturity (in months) | 67 | 68 |
| Fair value: |  |  |
| Recognized as an asset: |  |  |
| &nbsp;&nbsp;&nbsp;Interest rate derivatives | $27 | $18 |
| &nbsp;&nbsp;&nbsp;Loan level derivatives | 62488 | 102608 |
| &nbsp;&nbsp;&nbsp;Risk participation-out agreements | 553 | 495 |
| &nbsp;&nbsp;&nbsp;Foreign exchange contracts | 457 | 482 |
| Recognized as a liability: |  |  |
| &nbsp;&nbsp;&nbsp;Interest rate derivatives | $802 | $2051 |
| &nbsp;&nbsp;&nbsp;Loan level derivatives | 62488 | 102608 |
| &nbsp;&nbsp;&nbsp;Risk participation-in agreements | 179 | 137 |
| &nbsp;&nbsp;&nbsp;Foreign exchange contracts | 378 | 459 |

---

**Stockholders' Equity and Dividends**

The Company's total stockholders' equity was $1,254.2 million as of June 30, 2025 representing a $32.2 million increase compared to $1,221.9 million at December 31, 2024. The increase for the six months ended June 30, 2025, primarily reflects net income of $41.1 million and unrealized gain on securities available-for-sale of $14.1 million included in comprehensive income, partially offset by dividends paid by the Company of $24 million.

Stockholders' equity represented 10.84% of total assets as of June 30, 2025 and 10.26% of total assets as of December 31, 2024. Tangible stockholders' equity (total stockholders' equity less goodwill and identified intangible assets, net) represented 8.82% of tangible assets (total assets less goodwill and identified intangible assets, net) as of June 30, 2025 and 8.27% as of December 31, 2024.

The dividend payout ratio was 54.61% for the three months ended June 30, 2025, compared to 73.30% for the same period in 2024.

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<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

**Results of Operations**

The primary drivers of the Company's net income are net interest income, which is strongly affected by the net yield on and growth of interest-earning assets and liabilities, the quality of the Company's assets, its levels of non-interest income and non-interest expense, and its tax provision.

The Company's net interest income represents the difference between interest income earned on its investments, loans and leases, and its cost of funds. Interest income is dependent on the amount of interest-earning assets outstanding during the period and the yield earned thereon. Cost of funds is a function of the average amount of deposits and borrowed money outstanding during the year and the interest rates paid thereon. The net interest margin is calculated by dividing net interest income by average interest-earning assets. Net interest spread is the difference between the average rate earned on interest-earning assets and the average rate paid on interest-bearing liabilities. The increases or decreases, as applicable, in the components of interest income and interest expense, expressed in terms of fluctuation in average volume and rate, are summarized under *"Rate/Volume Analysis"* below. Information as to the components of interest income, interest expense and average rates is provided under *"Average Balances, Net Interest Income, Interest-Rate Spread and Net Interest Margin"* below.

Because the Company's assets and liabilities are not identical in duration and in repricing dates, the differential between the two is vulnerable to changes in market interest rates as well as the overall shape of the yield curve. These vulnerabilities are inherent to the business of banking and are commonly referred to as "interest-rate risk." How interest-rate risk is measured and, once measured, how much interest-rate risk is taken on, are based on numerous assumptions and other subjective judgments. See the discussion in *"Item 3. Quantitative and Qualitative Disclosures about Market Risk"* below.

The quality of the Company's assets also influences its earnings. Loans and leases that are not paid on a timely basis and exhibit other weaknesses can result in the loss of principal and/or interest income. Additionally, the Company must make timely provisions to the allowance for loan and lease losses based on estimates of probable losses inherent in the loan and lease portfolio. These additions, which are charged against earnings, are necessarily greater when greater probable losses are expected. Further, the Company incurs expenses as a result of resolving troubled assets. These variables reflect the "credit risk" that the Company takes on in the ordinary course of business and are further discussed under *"Financial Condition—Asset Quality"* above.

***Net Interest Income***

Net interest income increased $8.7 million to $88.7 million for the three months ended June 30, 2025 from $80.0 million for the three months ended June 30, 2024. This increase reflects a $10.0 million decrease in interest expense on deposits and borrowings, which is reflective of the current interest rate environment and a reduction in wholesale borrowings, along with a $0.4 million increase in interest income in investment securities, partially offset by a $1.7 million decrease in interest income on loans and leases. Refer to *"Results of Operations - Comparison of the Three-Month Period Ended June 30, 2025 and June 30, 2024 — Interest Income"* and *"Results of Operations - Comparison of the Three-Month Period Ended June 30, 2025 and June 30, 2024 — Interest Expense -Deposit and Borrowed Funds"* below for more details.

Net interest income increased $12.9 million to $174.5 million for the six months ended June 30, 2025 from $161.6 million for the six months ended June 30, 2024. This overall increase reflects a $3.6 million decrease in interest income on loans and leases and a $0.6 million increase in interest income on investment securities, offset by a $15.9 million decrease in interest expense on deposit and borrowings, which is reflective of the various portfolios repricing and replacing balances into the current interest rate environment. Refer to *"Results of Operations - Comparison of the Six-Month Period Ended June 30, 2025 and June 30, 2024 — Interest Income"* and *"Results of Operations - Comparison of the Six-Month Period Ended June 30, 2025 and June 30, 2024 — Interest Expense Deposit and Borrowed Funds"* below for more details.

Net interest margin increased 32 basis points to 3.32% for the three months ended June 30, 2025 from 3.00% for the three months ended June 30, 2024. The Company's weighted average interest rate on loans decreased to 6.01% for the three months ended June 30, 2025 from 6.02% for the three months ended June 30, 2024.

Net interest margin increased 24 basis points to 3.27% for the six months ended June 30, 2025 from 3.03% for the six months ended June 30, 2024. The Company's weighted average interest rate on loans decreased to 5.96% for the six months ended June 30, 2025 from 6.03% for the six months ended June 30, 2024.

The yield on interest-earning assets decreased to 5.74% for the three months ended June 30, 2025 from 5.79% for the three months ended June 30, 2024. The decrease is the result of lower yields on investments as well as loans and leases. During the three months ended June 30, 2025, the Company recorded $0.8 million in prepayment penalties and late charges, which contributed 3 basis points to yields on interest-earning assets, compared to $0.6 million, or 2 basis points, for the three months ended June 30, 2024.

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The yield on interest-earning assets decreased to 5.71% for the six months ended June 30, 2025 from 5.79% for the six months ended June 30, 2024. This decrease is the result of lower yields on investments as well as loans and leases. During the six months ended June 30, 2025, the Company recorded $1.5 million in prepayment penalties and late charges, which contributed 3 basis points to yields on interest-earning assets, compared to $1.3 million in prepayment penalties and late charges, which contributed 2 basis points to yields on interest-earning assets in the six months ended June 30, 2024.

The cost of interest-bearing liabilities decreased 48 basis points to 3.17% for the three months ended June 30, 2025 from 3.65% for the three months ended June 30, 2024. The cost of interest-bearing liabilities decreased 38 basis points to 3.23% for the six months ended June 30, 2025 from 3.61% for the six months ended June 30, 2024. Refer to *"Financial Condition - Borrowed Funds"* above for more details.

Management aims to position the balance sheet to be neutral to changes in interest rates. With the market's expectation for additional Federal Reserve rate cuts in the second half of 2025 and with the Treasury yield curve becoming more inverted since the prior quarter end, management anticipates that the net interest margin will be stable in the near term.

If the Federal Reserve cuts rates in the coming quarters, the net interest income and the net interest margin will be highly dependent on the Company's ability and timing to reduce deposit pricing as well as the overall mix of funding.

***Average Balances, Net Interest Income, Interest-Rate Spread and Net Interest Margin***

The following table sets forth information about the Company's average balances, interest income and interest rates earned on average interest-earning assets, interest expense and interest rates paid on average interest-bearing liabilities, interest-rate spread and net interest margin for the three and six months ended June 30, 2025 and June 30, 2024. Average balances are derived from daily average balances and yields include fees, costs and purchase-accounting-related premiums and discounts which are considered adjustments to coupon yields in accordance with GAAP.

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<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2024** | **June 30, 2024** | **June 30, 2024** |
| | **Average<br>Balance** | **Interest (1)** | **Average<br>Yield/<br>Cost** | **Average<br>Balance** | **Interest (1)** | **Average<br>Yield/<br>Cost** |
| | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** |
| **Assets:** | | | | | | |
| Interest-earning assets: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt securities | $874212 | $6752 | 3.09% | $846469 | $6510 | 3.08% |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted equity securities | 65724 | 1062 | 6.46% | 71696 | 1375 | 7.67% |
| &nbsp;&nbsp;&nbsp;&nbsp;Short-term investments | 215982 | 2386 | 4.42% | 143800 | 1914 | 5.33% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investments | 1155918 | 10200 | 3.53% | 1061965 | 9799 | 3.69% |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial real estate loans <sup>(2)</sup> | 5533208 | 77136 | 5.51% | 5754901 | 81565 | 5.61% |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial loans <sup>(2)</sup> | 1286908 | 20757 | 6.38% | 1069154 | 17672 | 6.54% |
| &nbsp;&nbsp;&nbsp;&nbsp;Equipment financing <sup>(2)</sup> | 1240128 | 25069 | 8.09% | 1374217 | 26255 | 7.64% |
| &nbsp;&nbsp;&nbsp;&nbsp;Consumer loans <sup>(2)</sup> | 1556254 | 21437 | 5.51% | 1488587 | 20291 | 5.46% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total loans and leases | 9616498 | 144399 | 6.01% | 9686859 | 145783 | 6.02% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-earning assets | 10772416 | 154599 | 5.74% | 10748824 | 155582 | 5.79% |
| Allowance for loan and lease losses | (124266) |  |  | (120644) |  |  |
| Non-interest-earning assets | 754784 |  |  | 825214 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $11402934 |  |  | $11453394 |  |  |
| &nbsp;&nbsp;&nbsp;**Liabilities and Stockholders' Equity:** |  |  |  |  |  |  |
| Interest-bearing liabilities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest-bearing deposits: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;NOW accounts | $637786 | 1034 | 0.65% | $659351 | 1111 | 0.68% |
| &nbsp;&nbsp;&nbsp;&nbsp;Savings accounts | 1780838 | 10692 | 2.41% | 1731388 | 11874 | 2.76% |
| &nbsp;&nbsp;&nbsp;&nbsp;Money market accounts | 2189373 | 13990 | 2.56% | 2026780 | 15520 | 3.08% |
| &nbsp;&nbsp;&nbsp;&nbsp;Certificate of deposit accounts | 1879749 | 18437 | 3.93% | 1699510 | 18717 | 4.43% |
| &nbsp;&nbsp;&nbsp;&nbsp;Brokered deposit accounts | 748205 | 8529 | 4.57% | 958146 | 12499 | 5.25% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing deposits <sup>(3)</sup> | 7235951 | 52682 | 2.92% | 7075175 | 59721 | 3.39% |
| &nbsp;&nbsp;&nbsp;Advances from the FHLB | 904399 | 10422 | 4.56% | 1049609 | 12894 | 4.86% |
| &nbsp;&nbsp;&nbsp;Subordinated debentures and notes | 84380 | 1718 | 8.14% | 84241 | 1375 | 6.53% |
| &nbsp;&nbsp;&nbsp;Other borrowed funds | 46086 | 565 | 4.93% | 103753 | 1364 | 5.29% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total borrowed funds | 1034865 | 12705 | 4.86% | 1237603 | 15633 | 5.00% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing liabilities | 8270816 | 65387 | 3.17% | 8312778 | 75354 | 3.65% |
| Non-interest-bearing liabilities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-interest-bearing demand checking accounts <sup>(3)</sup> | 1654594 |  |  | 1646869 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other non-interest-bearing liabilities | 225469 |  |  | 300362 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 10150879 |  |  | 10260009 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total stockholders' equity | 1252055 |  |  | 1193385 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $11402934 |  |  | $11453394 |  |  |
| Net interest income (tax-equivalent basis) / Interest-rate spread <sup>(4)</sup> |  | 89212 | 2.57% |  | 80228 | 2.14% |
| &nbsp;&nbsp;&nbsp;Less adjustment of tax-exempt income |  | 527 |  |  | 227 |  |
| Net interest income |  | $88685 |  |  | $80001 |  |
| Net interest margin <sup>(5)</sup> |  |  | 3.32% |  |  | 3.00% |

---

_________________________________________________________________________

(1) Tax-exempt income on debt securities, equity securities and industrial revenue bonds are included in commercial loans on a tax-equivalent basis.

(2) Loans on nonaccrual status are included in the average balances.

(3) Including non-interest-bearing checking accounts, the average interest rate on total deposits was 2.38% and 2.75% in the three months ended June 30, 2025 and June 30, 2024, respectively.

(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.

------

<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Six Months Ended** | **Six Months Ended** | **Six Months Ended** | **Six Months Ended** | **Six Months Ended** | **Six Months Ended** |
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2024** | **June 30, 2024** | **June 30, 2024** |
| | **Average<br>Balance** | **Interest (1)** | **Average<br>Yield/<br>Cost** | **Average<br>Balance** | **Interest (1)** | **Average<br>Yield/<br>Cost** |
| | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** |
| **Assets:** | | | | | | |
| Interest-earning assets: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt securities | $881522 | $13566 | 3.08% | $869848 | $13437 | 3.09% |
| &nbsp;&nbsp;&nbsp;&nbsp;Marketable and restricted equity securities | 67743 | 2266 | 6.69% | 74015 | 2868 | 7.75% |
| &nbsp;&nbsp;&nbsp;&nbsp;Short-term investments | 209503 | 4837 | 4.62% | 137284 | 3738 | 5.45% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investments | 1158768 | 20669 | 3.57% | 1081147 | 20043 | 3.71% |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial real estate loans <sup>(2)</sup> | 5591973 | 154379 | 5.49% | 5758318 | 162614 | 5.59% |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial loans <sup>(2)</sup> | 1262130 | 40455 | 6.38% | 1047810 | 35179 | 6.64% |
| &nbsp;&nbsp;&nbsp;&nbsp;Equipment financing <sup>(2)</sup> | 1260663 | 51034 | 8.10% | 1374322 | 53150 | 7.73% |
| &nbsp;&nbsp;&nbsp;&nbsp;Consumer loans <sup>(2)</sup> | 1552633 | 42298 | 5.46% | 1485702 | 40269 | 5.43% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total loans and leases | 9667399 | 288166 | 5.96% | 9666152 | 291212 | 6.03% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-earning assets | 10826167 | 308835 | 5.71% | 10747299 | 311255 | 5.79% |
| Allowance for loan and lease losses | (124401) |  |  | (118402) |  |  |
| Non-interest-earning assets | 770978 |  |  | 802745 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $11472744 |  |  | $11431642 |  |  |
| &nbsp;&nbsp;&nbsp;**Liabilities and Stockholders' Equity:** |  |  |  |  |  |  |
| Interest-bearing liabilities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest-bearing deposits: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;NOW accounts | $633092 | 2039 | 0.65% | $665632 | 2372 | 0.72% |
| &nbsp;&nbsp;&nbsp;&nbsp;Savings accounts | 1762366 | 20865 | 2.39% | 1712804 | 23226 | 2.73% |
| &nbsp;&nbsp;&nbsp;&nbsp;Money market accounts | 2188482 | 27577 | 2.54% | 2051542 | 31474 | 3.09% |
| &nbsp;&nbsp;&nbsp;&nbsp;Certificate of deposit accounts | 1883049 | 38030 | 4.07% | 1661814 | 35389 | 4.28% |
| &nbsp;&nbsp;&nbsp;&nbsp;Brokered deposit accounts | 757687 | 17649 | 4.70% | 927465 | 24144 | 5.23% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing deposits <sup>(3)</sup> | 7224676 | 106160 | 2.96% | 7019257 | 116605 | 3.34% |
| &nbsp;&nbsp;&nbsp;Advances from the FHLBB | 955669 | 22269 | 4.63% | 1107071 | 27527 | 4.92% |
| &nbsp;&nbsp;&nbsp;Subordinated debentures and notes | 84363 | 3419 | 8.11% | 84223 | 2752 | 6.54% |
| &nbsp;&nbsp;&nbsp;Other borrowed funds | 58704 | 1437 | 4.94% | 98406 | 2341 | 4.78% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total borrowed funds | 1098736 | 27125 | 4.91% | 1289700 | 32620 | 5.00% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing liabilities | 8323412 | 133285 | 3.23% | 8308957 | 149225 | 3.61% |
| Non-interest-bearing liabilities: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-interest-bearing demand checking accounts <sup>(3)</sup> | 1667489 |  |  | 1635690 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other non-interest-bearing liabilities | 238169 |  |  | 289351 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 10229070 |  |  | 10233998 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 1243674 |  |  | 1197644 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $11472744 |  |  | $11431642 |  |  |
| Net interest income (tax-equivalent basis) / Interest-rate spread <sup>(4)</sup> |  | 175550 | 2.48% |  | 162030 | 2.18% |
| &nbsp;&nbsp;&nbsp;Less adjustment of tax-exempt income |  | 1035 |  |  | 441 |  |
| Net interest income |  | $174515 |  |  | $161589 |  |
| Net interest margin <sup>(5)</sup> |  |  | 3.27% |  |  | 3.03% |

---

_________________________________________________________________________

(1) Tax-exempt income on debt securities, equity securities and industrial revenue bonds are included in commercial loans on a tax-equivalent basis.

(2) Loans on nonaccrual status are included in the average balances.

(3) Including non-interest-bearing checking accounts, the average interest rate on total deposits was 2.41% and 2.71% in the six months ended June 30, 2025 and June 30, 2024, respectively.

(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.

------

<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

***Rate/Volume Analysis***

The following table presents, on a tax-equivalent basis, the extent to which changes in interest rates and changes in volume of interest-earning assets and interest-bearing liabilities have affected the Company's interest income and interest expense during the periods indicated. Information is provided in each category with respect to: (i) changes attributable to changes in volume (changes in volume multiplied by prior rate), (ii) changes attributable to changes in rate (changes in rate multiplied by prior volume), and (iii) the net change. The changes attributable to the combined impact of volume and rate have been allocated proportionately to the changes due to volume and the changes due to rate.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30, 2025 as Compared to the Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2025 as Compared to the Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2025 as Compared to the Three Months Ended June 30, 2024** | **Six Months Ended June 30, 2025 as Compared to the Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2025 as Compared to the Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2025 as Compared to the Six Months Ended June 30, 2024** |
| | **Increase<br>(Decrease) Due To** | **Increase<br>(Decrease) Due To** | | **Increase<br>(Decrease) Due To** | **Increase<br>(Decrease) Due To** | |
| | **Volume** | **Rate** |<br>**Net Change** | **Volume** | **Rate** |<br>**Net Change** |
| | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** | **(In Thousands)** |
| **Interest and dividend income:** | | | | | | |
| &nbsp;&nbsp;&nbsp;Investments: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt securities | $220 | $22 | $242 | $173 | $(44) | $129 |
| &nbsp;&nbsp;&nbsp;&nbsp;Marketable and restricted equity securities | (108) | (205) | (313) | (230) | (372) | (602) |
| &nbsp;&nbsp;&nbsp;&nbsp;Short-term investments | 839 | (367) | 472 | 1729 | (630) | 1099 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investments | 951 | (550) | 401 | 1672 | (1046) | 626 |
| &nbsp;&nbsp;&nbsp;Loans and leases: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial real estate loans | (3028) | (1401) | (4429) | (5086) | (3149) | (8235) |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial loans and leases | 3516 | (431) | 3085 | 6696 | (1420) | 5276 |
| &nbsp;&nbsp;&nbsp;&nbsp;Equipment financing | (2662) | 1476 | (1186) | (4535) | 2419 | (2116) |
| &nbsp;&nbsp;&nbsp;&nbsp;Consumer loans | 1119 | 27 | 1146 | 2132 | (103) | 2029 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total loans | (1055) | (329) | (1384) | (793) | (2253) | (3046) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total change in interest and dividend income | (104) | (879) | (983) | 879 | (3299) | (2420) |
| **Interest expense:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Deposits: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;NOW accounts | (33) | (44) | (77) | (111) | (222) | (333) |
| &nbsp;&nbsp;&nbsp;&nbsp;Savings accounts | 338 | (1520) | (1182) | 644 | (3005) | (2361) |
| &nbsp;&nbsp;&nbsp;&nbsp;Money market accounts | 1200 | (2730) | (1530) | 1989 | (5886) | (3897) |
| &nbsp;&nbsp;&nbsp;&nbsp;Certificate of deposit accounts | 1917 | (2197) | (280) | 4459 | (1818) | 2641 |
| &nbsp;&nbsp;&nbsp;&nbsp;Brokered deposit accounts | (2495) | (1475) | (3970) | (4181) | (2314) | (6495) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deposits | 927 | (7966) | (7039) | 2800 | (13245) | (10445) |
| &nbsp;&nbsp;&nbsp;Borrowed funds: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Advances from the FHLB | (1709) | (763) | (2472) | (3674) | (1584) | (5258) |
| &nbsp;&nbsp;&nbsp;&nbsp;Subordinated debentures and notes | 2 | 341 | 343 | 5 | 662 | 667 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other borrowed funds | (712) | (87) | (799) | (979) | 75 | (904) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total borrowed funds | (2419) | (509) | (2928) | (4648) | (847) | (5495) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total change in interest expense | (1492) | (8475) | (9967) | (1848) | (14092) | (15940) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in tax-exempt income | 300 |  | 300 | 594 |  | 594 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in net interest income | $1088 | $7596 | $8684 | $2133 | $10793 | $12926 |

---

------

<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

***Interest Income***

***Loans and Leases***

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Dollar<br>Change** | **Percent<br>Change** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Dollar<br>Change** | **Percent<br>Change** |
| | **2025** | **2024** | **Dollar<br>Change** | **Percent<br>Change** | **2025** | **2024** | **Dollar<br>Change** | **Percent<br>Change** |
| | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** |
| Interest income—loans and leases: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Commercial real estate loans | $77033 | $81565 | $(4532) | (5.6)% | $154171 | $162614 | $(8443) | (5.2)% |
| &nbsp;&nbsp;&nbsp;Commercial loans | 20393 | 17474 | 2919 | 16.7% | 39738 | 34817 | 4921 | 14.1% |
| &nbsp;&nbsp;&nbsp;Equipment financing | 25069 | 26254 | (1185) | (4.5)% | 51034 | 53150 | (2116) | (4.0)% |
| &nbsp;&nbsp;&nbsp;Residential mortgage loans | 13769 | 12603 | 1166 | 9.3% | 27191 | 24918 | 2273 | 9.1% |
| &nbsp;&nbsp;&nbsp;Other consumer loans | 7669 | 7689 | (20) | (0.3)% | 15108 | 15351 | (243) | (1.6)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest income—loans and leases <sup>(1)</sup> | $143933 | $145585 | $(1652) | (1.1)% | $287242 | $290850 | $(3608) | (1.2)% |

---

_________________________________________________________________________

(1) Change in tax-exempt income of $268 thousand and $562 thousand is excluded from the three and six months ended tables above.

Total interest income from loans and leases was $143.9 million for the three months ended June 30, 2025, and represented a yield on total loans of 6.01%. This compares to $145.6 million of interest on loans and a yield of 6.02% for the three months ended June 30, 2024. The $1.7 million decrease in interest income from loans and leases was primarily due to a decrease of $1.1 million in the portfolio composition in origination volume, in addition to $0.3 million decreases in both changes to interest rates and the change of tax-exempt income.

Total interest income from loans and leases was $287.2 million for the six months ended June 30, 2025, and represented a yield on total loans of 5.96%. This compares to $290.9 million of interest on loans and a yield of 6.03% for the six months ended June 30, 2024. The $3.6 million decrease in interest income from loans and leases was primarily attributable to a decrease of $2.3 million in changes to interest rates, a decrease of $0.8 million in the portfolio composition in origination volume and a decrease of $0.6 million in the change of tax-exempt income.

***Investments***

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended <br> June 30,** | **Three Months Ended <br> June 30,** | **Dollar<br>Change** | **Percent<br>Change** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Dollar<br>Change** | **Percent<br>Change** |
| | **2025** | **2024** | **Dollar<br>Change** | **Percent<br>Change** | **2025** | **2024** | **Dollar<br>Change** | **Percent<br>Change** |
| | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** |
| Interest income—investments: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Debt securities | $6691 | $6480 | $211 | 3.3% | $13456 | $13358 | $98 | 0.7% |
| &nbsp;&nbsp;&nbsp;Restricted equity securities | 1062 | 1376 | (314) | (22.8)% | 2265 | 2868 | (603) | (21.0)% |
| &nbsp;&nbsp;&nbsp;Short-term investments | 2386 | 1914 | 472 | 24.7% | 4837 | 3738 | 1099 | 29.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest income—investments <sup>(1)</sup> | $10139 | $9770 | $369 | 3.8% | $20558 | $19964 | $594 | 3.0% |

---

_________________________________________________________________________

(1) Change in tax-exempt income of $32 thousand $32 thousand and is excluded from the three and six months ended tables above.

Total interest income from investments was $10.1 million for the three months ended June 30, 2025, compared to $9.8 million for the three months ended June 30, 2024. For the three months ended June 30, 2025 and 2024, the yield on total investments was 3.5% and 3.7%, respectively. The year over year increase in interest income on investments of $0.4 million, or 3.8%, was primarily driven by a $1.0 million increase due to volume and a $0.6 million decrease due to rates.

Total investment income was $20.6 million and $20.0 million for the six months ended June 30, 2025 and June 30, 2024, respectively. For the six months ended June 30, 2025 and 2024, the yield on total investments was 3.6% and 3.7%, respectively. The year over year increase in interest income on investments of $0.6 million, or 3.0%, was primarily driven by a $1.7 million increase due to volume and a $1.1 million decrease due to rates.

------

<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

***Interest Expense—Deposits and Borrowed Funds***

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended <br> June 30,** | **Three Months Ended <br> June 30,** | **Dollar<br>Change** | **Percent<br>Change** | **Six Months Ended <br> June 30,** | **Six Months Ended <br> June 30,** | **Dollar<br>Change** | **Percent<br>Change** |
| | **2025** | **2024** | **Dollar<br>Change** | **Percent<br>Change** | **2025** | **2024** | **Dollar<br>Change** | **Percent<br>Change** |
| | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** |
| Interest expense: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Deposits: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;NOW accounts | $1034 | $1111 | $(77) | (6.9)% | $2039 | $2372 | $(333) | (14.0)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Savings accounts | 10692 | 11874 | (1182) | (10.0)% | 20865 | 23226 | (2361) | (10.2)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Money market accounts | 13990 | 15520 | (1530) | (9.9)% | 27577 | 31474 | (3897) | (12.4)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Certificate of deposit accounts | 18437 | 18717 | (280) | (1.5)% | 38030 | 35389 | 2641 | 7.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Brokered deposit accounts | 8529 | 12499 | (3970) | (31.8)% | 17649 | 24144 | (6495) | (26.9)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest expense - deposits | 52682 | 59721 | (7039) | (11.8)% | 106160 | 116605 | (10445) | (9.0)% |
| &nbsp;&nbsp;&nbsp;Borrowed funds: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Advances from the FHLB | 10422 | 12894 | (2472) | (19.2)% | 22269 | 27527 | (5258) | (19.1)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Subordinated debentures and notes | 1718 | 1375 | 343 | 24.9% | 3419 | 2752 | 667 | 24.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Other borrowed funds | 565 | 1364 | (799) | (58.6)% | 1437 | 2341 | (904) | (38.6)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest expense - borrowed funds | 12705 | 15633 | (2928) | (18.7)% | 27125 | 32620 | (5495) | (16.8)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest expense | $65387 | $75354 | $(9967) | (13.2)% | $133285 | $149225 | $(15940) | (10.7)% |

---

*Deposits*

For the three months ended June 30, 2025, interest expense on deposits decreased $7.0 million, or 11.8%, compared to the same period in 2024. The decrease in interest expense on deposits was driven by a decrease of $8.0 million due to lower interest rates offset by an increase of $0.9 million primarily driven by the growth in volume of average customer deposits partially offset by a decline in average brokered deposits balances. For the three months ended June 30, 2025, the purchase accounting amortization on acquired deposits was $112 thousand and zero basis points, compared to $236.0 thousand and one basis point for the same period in 2024.

Interest expense on deposits decreased $10.4 million, or 9.0%, to $106.2 million for the six months ended June 30, 2025 from $116.6 million for the six months ended June 30, 2024. The decrease in interest expense on deposits was driven by a $13.2 million decrease due to lower interest rates offset by an increase of $2.8 million primarily driven by the growth in volume of average customer deposits partially offset by a decline in average brokered deposit balances. Purchase accounting amortization on acquired deposits for the six months ended June 30, 2025 was $224.0 thousand and zero basis point, compared to $565.0 thousand and one basis point for the same period in 2024.

*Borrowed Funds* 

For the three months ended June 30, 2025, interest expense on borrowed funds decreased $2.9 million, or 18.7% year over year. The decrease in interest expense on borrowed funds was primarily driven by a decrease of $2.4 million due to volume and a decrease of $0.5 million due to borrowing rates which decreased to 4.86% for the three months ended June 30, 2025 from 5.00% for the three months ended June 30, 2024. For the three months ended June 30, 2025, the purchase accounting amortization on acquired borrowed funds was $9.0 thousand, compared to $10.0 thousand for the same period in 2024.

During the six months ended June 30, 2025, interest expense on borrowed funds decreased $5.5 million, or 16.8% year over year. The cost of borrowed funds decreased to 4.91% for the six months ended June 30, 2025 from 5.00% for the six months ended June 30, 2024. The decrease in interest expense was primarily driven by a decrease of $4.6 million due to volume and a decrease of $0.8 million due to borrowing rates. For the six months ended June 30, 2025, purchase accounting

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<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

amortization was $18.0 thousand on acquired borrowed funds, compared to amortization of $136.0 thousand for the six months ended June 30, 2024.

***Provision for Credit Losses***

The provisions for credit losses are set forth below:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Dollar<br>Change** | **Percent<br>Change** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Dollar<br>Change** | **Percent<br>Change** |
| | **2025** | **2024** | **Dollar<br>Change** | **Percent<br>Change** | **2025** | | **2024** | **Dollar<br>Change** | **Percent<br>Change** |
| | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** |
| Provision (credit) for loan and lease losses: |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Commercial real estate | $2640 | $2496 | $144 | 5.8% | $2468 |  | $5167 | $(2699) | (52.2)% |
| &nbsp;&nbsp;&nbsp;Commercial | 4753 | 7540 | (2787) | (37.0)% | 11587 |  | &nbsp;&nbsp;12879 | (1292) | (10.0)% |
| &nbsp;&nbsp;&nbsp;Consumer | 314 | (23) | 337 | (1465.2)% | 311 |  | (350) | 661 | (188.9)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total provision (credit) for loan and lease losses | 7707 | 10013 | (2306) | (23.0)% | 14366 |  | &nbsp;&nbsp;17696 | (3330) | (18.8)% |
| &nbsp;&nbsp;&nbsp;Unfunded credit commitments | (710) | (4406) | 3696 | (83.9)% | (1395) |  | &nbsp;&nbsp;&nbsp;(4666) | 3271 | (70.1)% |
| &nbsp;&nbsp;Investment securities available-for-sale | 3 | (39) | 42 | (107.7)% | 15 |  | (83) | 98 | (118.1)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total provision (credit) for credit losses | $7000 | $5568 | $1432 | 25.7% | $12986 | $— | $12947 | $39 | 0.3% |

---

For the three months ended June 30, 2025, the provision for credit losses increased by $1.4 million to $7.0 million, compared to a provision for credit losses of $5.6 million for the three months ended June 30, 2024. The increase in the provision for credit losses for the three months ended June 30, 2025 is primarily driven by an increase in specific reserves on nonperforming credits and a reduction in loan and commitment balances.

For the six months ended June 30, 2025 and June 30, 2024, the provision for credit and investment losses was relatively consistent at $13.0 million and $12.9 million, respectively.

See management's discussion of *"Financial Condition — Allowance for Loan and Lease Losses"* and Note 5, "Allowance for Loan and Lease Losses," to the unaudited consolidated financial statements for a description of how management determined the allowance for loan and lease losses for each portfolio and class of loans.

***Non-Interest Income***

The following table sets forth the components of non-interest income:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Dollar<br>Change** | **Percent<br>Change** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Dollar<br>Change** | **Percent<br>Change** |
| | **2025** | **2024** | **Dollar<br>Change** | **Percent<br>Change** | **2025** | **2024** | **Dollar<br>Change** | **Percent<br>Change** |
| | **(Dollars in Thousands)** | **(Dollars in Thousands)** | | | | | | |
| Deposit fees | $2472 | $3001 | $(529) | (17.6)% | $4833 | $5898 | $(1065) | (18.1)% |
| Loan fees | 472 | 702 | (230) | (32.8)% | 865 | 1491 | (626) | (42.0)% |
| Loan level derivative income, net | (4) | 106 | (110) | (103.8)% | 66 | 543 | (477) | (87.8)% |
| Gain on sales of loans and leases held-for-sale | 264 | 130 | 134 | 103.1% | 288 | 130 | 158 | 121.5% |
| Other | 2766 | 2457 | 309 | 12.6% | 5578 | 4618 | 960 | 20.8% |
| &nbsp;&nbsp;&nbsp;Total non-interest income | $5970 | $6396 | $(426) | (6.7)% | $11630 | $12680 | $(1050) | (8.3)% |

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<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

Deposit fees decreased $0.5 million, or 17.6%, to $2.5 million for the three months ended June 30, 2025, compared to $3.0 million for the same period in 2024, and decreased $1.1 million, or 18.1%, to $4.8 million for the six months ended June 30, 2025, compared to $5.9 million for the same period in 2024, primarily driven by lower debit card income, partially offset by higher service charges.

Loan fees decreased $0.2 million, or 32.8%, to $0.5 million for the three months ended June 30, 2025, compared to $0.7 million for the same period in 2024, and decreased $0.6 million, or 42.0%, to $0.9 million for the six months ended June 30, 2025, compared to $1.5 million for the same period in 2024, primarily driven by lower commitment fees.

Loan level derivative income decreased $0.1 million, or 103.8%, to $0.0 million for the three months ended June 30, 2025, compared to $0.1 million for the same period in 2024, as there were no loan level derivative transactions completed for the three months ended June 30, 2025, and decreased $0.5 million, or 87.8%, to $0.1 million for the six months ended June 30, 2025 from $0.5 million for the same period in 2024, primarily driven by lower volume in loan level derivative transactions completed for the six months ended June 30, 2025.

Other income increased $0.3 million, or 12.6%, to $2.8 million for the three months ended June 30, 2025 from $2.5 million for the same period in 2024, primarily driven by higher insurance commissions, higher miscellaneous income, higher foreign exchange wire income, and the mark to market on interest rate swaps on participated loans. Other income increased $1.0 million, or 20.8%, to $5.6 million for the six months ended June 30, 2025 from $4.6 million for the same period in 2024, primarily driven by the mark to market on interest rate swaps on participated loans, higher miscellaneous income, higher foreign exchange wire income, and higher insurance commissions.

***Non-Interest Expense***

The following table sets forth the components of non-interest expense:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Dollar<br>Change** | **Percent<br>Change** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Dollar<br>Change** | **Percent<br>Change** |
| | **2025** | **2024** | **Dollar<br>Change** | **Percent<br>Change** | **2025** | **2024** | **Dollar<br>Change** | **Percent<br>Change** |
| | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** |
| Compensation and employee benefits | $35147 | $34762 | $385 | 1.1% | $71000 | $71391 | $(391) | (0.5)% |
| Occupancy | 5349 | 5551 | (202) | (3.6)% | 11070 | 11320 | (250) | (2.2)% |
| Equipment and data processing | 6841 | 6732 | 109 | 1.6% | 13853 | 13763 | 90 | 0.7% |
| Professional services | 1471 | 1745 | (274) | (15.7)% | 3197 | 3645 | (448) | (12.3)% |
| FDIC insurance | 1880 | 2025 | (145) | (7.2)% | 3917 | 3909 | 8 | 0.2% |
| Advertising and marketing | 1371 | 1504 | (133) | (8.8)% | 2239 | 3078 | (839) | (27.3)% |
| Amortization of identified intangible assets | 1431 | 1669 | (238) | (14.3)% | 2861 | 3377 | (516) | (15.3)% |
| Merger and restructuring expense | 439 | 823 | (384) | (46.7)% | 1410 | 823 | 587 | 71.3% |
| Other | 4132 | 4373 | (241) | (5.5)% | 8536 | 8892 | (356) | (4.0)% |
| &nbsp;&nbsp;&nbsp;Total non-interest expense | $58061 | $59184 | $(1123) | (1.9)% | $118083 | $120198 | $(2115) | (1.8)% |

---

Merger and restructuring expense decreased $0.4 million, or 46.7%, to $0.4 million for the three months ended June 30, 2025, compared to $0.8 million for the same period in 2024, and increased $0.6 million, or 71.3%, to $1.4 million for the six months ended June 30, 2025, compared to $0.8 million for the same period in 2024. Excluding merger and restructuring expense, non-interest expense decreased $0.7 million to $57.6 million for the three months ended June 30, 2025, compared to $58.4 million for the same period in 2024, and decreased $2.7 million to $116.7 million for the six months ended June 30, 2025, compared to $119.4 million for the same period in 2024.

Professional services expense decreased $0.3 million, or 15.7%, to $1.5 million for the three months ended June 30, 2025, compared to $1.7 million for the same period in 2024, and decreased $0.4 million, or 12.3%, to $3.2 million for the six months ended June 30, 2025 from $3.6 million for the same period in 2024, primarily driven by lower legal and internal audit expenses.

Advertising and marketing expense decreased $0.1 million, or 8.8%, to $1.4 million for the three months ended June 30, 2025 from $1.5 million for the same period in 2024, and decreased $0.8 million, or 27.3%, to $2.2 million for the six months ended June 30, 2025 from $3.1 million for the same period in 2024, primarily driven by lower overall spending on advertising and marketing.

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<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

***Provision for Income Taxes***

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Dollar<br>Change** | **Percent<br>Change** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Dollar<br>Change** | **Percent<br>Change** |
| | **2025** | **2024** | **Dollar<br>Change** | **Percent<br>Change** | **2025** | **2024** | **Dollar<br>Change** | **Percent<br>Change** |
| | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** |
| Income before provision for income taxes | $29594 | $21645 | $7949 | 36.7% | $55076 | $41124 | $13952 | 33.9% |
| Provision (benefit) for income taxes | 7568 | 5273 | 2295 | 43.5% | 13950 | 10087 | 3863 | 38.3% |
| &nbsp;&nbsp;&nbsp;Net income | $22026 | $16372 | $5654 | 34.5% | $41126 | $31037 | $10089 | 32.5% |
| Effective tax rate | 25.6% | 24.4% | N/A | 4.9% | 25.3% | 24.5% | N/A | 3.3% |

---

The Company recorded an income tax expense of $7.6 million for the three months ended June 30, 2025, compared to an income tax expense of $5.3 million for the three months ended June 30, 2024, representing effective tax rates of 25.6% and 24.4%, respectively. The increase in effective tax rate for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 was primarily driven by an increase in merger expenses in the 2025 effective rate.

The Company recorded an income tax expense of $14.0 million for the six months ended June 30, 2025, compared to an income tax expense of $10.1 million for the six months ended June 30, 2024, representing effective tax rates of 25.3% and 24.5%, respectively. The overall increase in the effective tax rate for the six months ended June 30, 2025 is primarily driven by an increase in merger expenses in the 2025 effective rate.

**Liquidity and Capital Resources**

***Liquidity***

Liquidity is defined as the ability to meet current and future financial obligations of a short-term nature. The Company further defines liquidity as the ability to respond to the needs of depositors and borrowers, as well as to earnings enhancement opportunities, in a changing marketplace. Liquidity management is monitored by the Company's ALCO, consisting of members of management, which is responsible for establishing and monitoring liquidity targets as well as strategies and tactics to meet these targets. The primary source of funds for the payment of dividends and expenses by the Company is dividends paid to it by the Banks. The primary sources of liquidity for the Banks consist of deposit inflows, loan repayments, borrowed funds, and maturing investment securities.

In the second quarter, the Company operated with increased liquidity. During the year, the Company shifted its balance sheet asset mix to include additional cash and available for sale securities. Management will continue to monitor the economic markets and evaluate changes to the Company's liquidity position.

The Company held higher levels of on balance sheet liquidity in the form of cash and available for sale securities in the second quarter. Cash and equivalents at the end of the quarter were $506.7 million, or 4.4% of the balance sheet, compared to $543.7 million, or 4.6% of the balance sheet, as of December 31, 2024. In general, in a normal operating environment, the Company seeks to maintain liquidity levels of cash, cash equivalents and investment securities available-for-sale of between 10% and 12% of total assets. As of June 30, 2025, cash, cash equivalents and investment securities available-for-sale totaled $1.4 billion, or 11.9% of total assets. This compares to $1.4 billion, or 12.1% of total assets, as of December 31, 2024.

Deposits, which are considered the most stable source of liquidity, totaled $9.0 billion as of June 30, 2025 and represented 88.6% of total funding (the sum of total deposits and total borrowings), compared to deposits of $8.9 billion, or 85.4% of total funding, as of December 31, 2024. Core deposits, which consist of demand checking, NOW, savings and money market accounts, totaled $6.3 billion as of June 30, 2025 and represented 70.6% of total deposits, compared to core deposits of $6.1 billion, or 69.1% of total deposits, as of December 31, 2024. Additionally, the Company had $756.4 million of brokered deposits as of June 30, 2025, which represented 8.4% of total deposits, compared to $869.0 million or 9.8% of total deposits, as of December 31, 2024. The Company offers attractive interest rates based on market conditions to increase deposits balances, while managing the cost of funds.

Borrowings are used to diversify the Company's funding mix and to support asset growth. When profitable lending and investment opportunities exist, access to borrowings provides a means to grow the balance sheet. Borrowings totaled $1.2 billion as of June 30, 2025, representing 11.4% of total funding, compared to $1.5 billion, or 14.6% of total funding, as of December 31, 2024. The growth in the balance sheet is driven by the current operating environment, management will continue to monitor economic conditions and make adjustments to the balance sheet mix as appropriate.

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<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

As members of the FHLB, the Banks have access to both short- and long-term borrowings. As of June 30, 2025, the Company's total borrowing limit from the FHLB for advances and repurchase agreements was $2.8 billion, compared to $2.8 billion as of December 31, 2024.

As of June 30, 2025, the Banks also have access to funding through certain uncommitted lines via AFX as well as other large financial institution specific lines. As of June 30, 2025, the Company had $100.0 million in outstanding balances for uncommitted lines of credit. As of December 31, 2024, the Company had no borrowings on outstanding uncommitted lines of credit.

The Company had a $30.0 million committed line of credit for contingent liquidity as of June 30, 2025. As of June 30, 2025, the Company did not have any outstanding borrowings on this line.

The Company has access to the Federal Reserve Discount Window to supplement its liquidity. The Company had $396.3 million of borrowing capacity at the FRB as of June 30, 2025. As of June 30, 2025, the Company did not have any outstanding borrowings with the FRB.

Additionally, the Banks have access to liquidity through repurchase agreements and additional untapped brokered deposits.

While management believes the Company has adequate liquidity to meet its commitments and to fund the Banks' lending and investment activities, the availabilities of these funding sources are subject to broad economic conditions and could be restricted in the future. Such restrictions would impact the Company's immediate liquidity and/or additional liquidity needs.

***Off-Balance-Sheet Financial Instruments***

The Company is party to off-balance-sheet financial instruments in the normal course of business to meet the financing needs of its customers and to reduce its own exposure to fluctuations in interest rates. These financial instruments include loan commitments, standby and commercial letters of credit and interest-rate swaps. According to GAAP, these financial instruments are not recorded in the financial statements until they are funded or related fees are incurred or received. See Note 12, "Commitments and Contingencies", to the consolidated financial statements for a description of off-balance-sheet financial instruments.

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<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

Financial instruments with off-balance-sheet risk at the dates indicated follow:

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| | | |
|:---|:---|:---|
| | **At June 30, 2025** | **At December 31, 2024** |
| | **(In Thousands)** | **(In Thousands)** |
| Financial instruments whose contract amounts represent credit risk: |  |  |
| &nbsp;&nbsp;&nbsp;Commitments to originate loans and leases: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial real estate | $40672 | $11126 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial | 111854 | 144721 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Residential mortgage | 24646 | 14607 |
| &nbsp;&nbsp;&nbsp;Unadvanced portion of loans and leases | 952115 | 1076783 |
| &nbsp;&nbsp;&nbsp;Unused lines of credit: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Home equity | 807749 | 780214 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other consumer | 129642 | 113838 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other commercial | 429 | 398 |
| &nbsp;&nbsp;&nbsp;Unused letters of credit: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial standby letters of credit | 9695 | 12702 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Performance standby letters of credit | 28040 | 24325 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial and similar letters of credit | 2206 | 2330 |
| &nbsp;&nbsp;&nbsp;Interest rate derivatives | $225000 | $225000 |
| &nbsp;&nbsp;&nbsp;Loan level derivatives: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Receive fixed, pay variable | 1425875 | 1672948 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pay fixed, receive variable | 1425875 | 1672948 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk participation-out agreements | 430619 | 539731 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk participation-in agreements | 100934 | 102198 |
| &nbsp;&nbsp;&nbsp;Foreign exchange contracts: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Buys foreign currency, sells U.S. currency | 5560 | 5849 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sells foreign currency, buys U.S. currency | 5105 | 5408 |

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<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

***Capital Resources***

As of June 30, 2025, the Company and the Banks are each under the primary regulation of, and must comply with, the capital requirements of the FRB. Under these rules, the Company and the Banks are each required to maintain a minimum common equity Tier 1 capital ratio of 4.5%, a minimum Tier 1 capital leverage ratio of 6.0%, a minimum total risk based capital ratio of 8% and a minimum Tier 1 leverage ratio of 4%. Additionally, the Company and the Banks are required to establish a capital conservation buffer of common equity Tier 1 capital in an amount above the minimum risk-based capital requirements for "adequately capitalized" institutions equal to 2.5% of total risk weighted assets, or face restrictions on the ability to pay dividends, pay discretionary bonuses, and to engage in share repurchases. As of June 30, 2025, the Company and the Banks exceeded all regulatory capital requirements, and the Banks were each considered "well-capitalized" under prompt corrective action regulations.

The following table presents actual and required capital amounts and capital ratios as of June 30, 2025 for the Company and the Banks.

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Actual** | **Actual** | **Minimum Required for Capital Adequacy Purposes** | **Minimum Required for Capital Adequacy Purposes** | **Minimum Required for Fully Phased in Capital Adequacy Purposes plus Capital Conservation Buffer** | **Minimum Required for Fully Phased in Capital Adequacy Purposes plus Capital Conservation Buffer** | **Minimum Required to be Considered "Well-Capitalized" Under Prompt Corrective Action Provisions** | **Minimum Required to be Considered "Well-Capitalized" Under Prompt Corrective Action Provisions** |
| | **Amount** | **Ratio** | **Amount** | **Ratio** | **Amount** | **Ratio** | **Amount** | **Ratio** |
| | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** |
| **At June 30, 2025:** | | | | | | | | |
| Brookline Bancorp, Inc. |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Common equity Tier 1 capital ratio <sup>(1)</sup> | $1043294 | 11.05% | $424871 | 4.50% | $660910 | 7.00% | N/A | N/A |
| &nbsp;&nbsp;Tier 1 leverage capital ratio <sup>(2)</sup> | 1053113 | 9.40% | 448133 | 4.00% | 448133 | 4.00% | N/A | N/A |
| &nbsp;&nbsp;Tier 1 risk-based capital ratio <sup>(3)</sup> | 1053113 | 11.15% | 566698 | 6.00% | 802822 | 8.50% | N/A | N/A |
| &nbsp;&nbsp;Total risk-based capital ratio <sup>(4)</sup> | 1230994 | 13.03% | 755791 | 8.00% | 991975 | 10.50% | N/A | N/A |
| Brookline Bank |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Common equity Tier 1 capital ratio <sup>(1)</sup> | $587326 | 11.04% | $239399 | 4.50% | $372399 | 7.00% | $345799 | 6.50% |
| &nbsp;&nbsp;Tier 1 leverage capital ratio <sup>(2)</sup> | 587326 | 9.57% | 245486 | 4.00% | 245486 | 4.00% | 306858 | 5.00% |
| &nbsp;&nbsp;Tier 1 risk-based capital ratio <sup>(3)</sup> | 587326 | 11.04% | 319199 | 6.00% | 452198 | 8.50% | 425599 | 8.00% |
| &nbsp;&nbsp;Total risk-based capital ratio <sup>(4)</sup> | 654096 | 12.30% | 425428 | 8.00% | 558375 | 10.50% | 531785 | 10.00% |
| BankRI |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Common equity Tier 1 capital ratio <sup>(1)</sup> | $304310 | 10.95% | $125059 | 4.50% | $194536 | 7.00% | $180641 | 6.50% |
| &nbsp;&nbsp;Tier 1 leverage capital ratio <sup>(2)</sup> | 304310 | 9.14% | 133177 | 4.00% | 133177 | 4.00% | 166472 | 5.00% |
| &nbsp;&nbsp;Tier 1 risk-based capital ratio <sup>(3)</sup> | 304310 | 10.95% | 166745 | 6.00% | 236222 | 8.50% | 222327 | 8.00% |
| &nbsp;&nbsp;Total risk-based capital ratio <sup>(4)</sup> | 330354 | 11.89% | 222274 | 8.00% | 291734 | 10.50% | 277842 | 10.00% |
| PCSB Bank |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Common equity Tier 1 capital ratio <sup>(1)</sup> | $203899 | 14.60% | $62846 | 4.50% | $97760 | 7.00% | $90777 | 6.50% |
| &nbsp;&nbsp;Tier 1 leverage capital ratio <sup>(2)</sup> | 203899 | 10.21% | 79882 | 4.00% | 79882 | 4.00% | 99853 | 5.00% |
| &nbsp;&nbsp;Tier 1 risk-based capital ratio <sup>(3)</sup> | 203899 | 14.60% | 83794 | 6.00% | 118708 | 8.50% | 111725 | 8.00% |
| &nbsp;&nbsp;Total risk-based capital ratio <sup>(4)</sup> | 220639 | 15.80% | 111716 | 8.00% | 146627 | 10.50% | 139645 | 10.00% |

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_______________________________________________________________________________

(1) Common equity Tier 1 capital ratio is calculated by dividing common equity Tier 1 capital by risk-weighted assets.

(2) Tier 1 leverage capital ratio is calculated by dividing Tier 1 capital by average assets.

(3) Tier 1 risk-based capital ratio is calculated by dividing Tier 1 capital by risk-weighted assets.

(4) Total risk-based capital ratio is calculated by dividing total capital by risk-weighted assets.

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<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

The following table presents actual and required capital amounts and capital ratios as of December 31, 2024 for the Company and the Banks.

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Actual** | **Actual** | **Minimum Required for Capital Adequacy Purposes** | **Minimum Required for Capital Adequacy Purposes** | **Minimum Required for Fully Phased in Capital Adequacy Purposes plus Capital Conservation Buffer** | **Minimum Required for Fully Phased in Capital Adequacy Purposes plus Capital Conservation Buffer** | **Minimum Required To**<br>**Be Considered**<br> **"Well-Capitalized" Under Prompt Corrective Action Provisions** | **Minimum Required To**<br>**Be Considered**<br> **"Well-Capitalized" Under Prompt Corrective Action Provisions** |
| | **Amount** | **Ratio** | **Amount** | **Ratio** | **Amount** | **Ratio** | **Amount** | **Ratio** |
| | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** |
| **At December 31, 2024:** | | | | | | | | |
| Brookline Bancorp, Inc. |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Common equity Tier 1 capital ratio <sup>(1)</sup> | $1022454 | 10.46% | $439870 | 4.50% | $684243 | 7.00% | N/A | N/A |
| &nbsp;&nbsp;Tier 1 leverage capital ratio <sup>(2)</sup> | 1032255 | 9.06% | 455742 | 4.00% | 455742 | 4.00% | N/A | N/A |
| &nbsp;&nbsp;Tier 1 risk-based capital ratio <sup>(3)</sup> | 1032255 | 10.56% | 586509 | 6.00% | 830887 | 8.50% | N/A | N/A |
| &nbsp;&nbsp;Total risk-based capital ratio <sup>(4)</sup> | 1214208 | 12.42% | 782099 | 8.00% | 1026504 | 10.50% | N/A | N/A |
| Brookline Bank |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Common equity Tier 1 capital ratio <sup>(1)</sup> | $584420 | 10.47% | $251183 | 4.50% | $390730 | 7.00% | $362820 | 6.50% |
| &nbsp;&nbsp;Tier 1 leverage capital ratio <sup>(2)</sup> | 584420 | 9.30% | 251363 | 4.00% | 251363 | 4.00% | 314204 | 5.00% |
| &nbsp;&nbsp;Tier 1 risk-based capital ratio <sup>(3)</sup> | 584420 | 10.47% | 334911 | 6.00% | 474457 | 8.50% | 446548 | 8.00% |
| &nbsp;&nbsp;Total risk-based capital ratio <sup>(4)</sup> | 654287 | 11.73% | 446232 | 8.00% | 585679 | 10.50% | 557789 | 10.00% |
| BankRI |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Common equity Tier 1 capital ratio <sup>(1)</sup> | $294573 | 10.53% | $125886 | 4.50% | $195823 | 7.00% | $181835 | 6.50% |
| &nbsp;&nbsp;Tier 1 leverage capital ratio <sup>(2)</sup> | 294573 | 8.90% | 132392 | 4.00% | 132392 | 4.00% | 165490 | 5.00% |
| &nbsp;&nbsp;Tier 1 risk-based capital ratio <sup>(3)</sup> | 294573 | 10.53% | 167848 | 6.00% | 237784 | 8.50% | 223797 | 8.00% |
| &nbsp;&nbsp;Total risk-based capital ratio <sup>(4)</sup> | 328646 | 11.75% | 223759 | 8.00% | 293684 | 10.50% | 279699 | 10.00% |
| PCSB Bank |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Common equity Tier 1 capital ratio <sup>(1)</sup> | $197296 | 13.73% | $64664 | 4.50% | $100588 | 7.00% | $93403 | 6.50% |
| &nbsp;&nbsp;Tier 1 leverage capital ratio <sup>(2)</sup> | 197296 | 10.11% | 78060 | 4.00% | 78060 | 4.00% | 97575 | 5.00% |
| &nbsp;&nbsp;Tier 1 risk-based capital ratio <sup>(3)</sup> | 197296 | 13.73% | 86218 | 6.00% | 122142 | 8.50% | 114958 | 8.00% |
| &nbsp;&nbsp;Total risk-based capital ratio <sup>(4)</sup> | 214879 | 14.95% | 114985 | 8.00% | 150918 | 10.50% | 143732 | 10.00% |

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_______________________________________________________________________________

(1) Common equity Tier 1 capital ratio is calculated by dividing common equity Tier 1 capital by risk-weighted assets.

(2) Tier 1 leverage capital ratio is calculated by dividing Tier 1 capital by average assets.

(3) Tier 1 risk-based capital ratio is calculated by dividing Tier 1 capital by risk-weighted assets.

(4) Total risk-based capital ratio is calculated by dividing total capital by risk-weighted assets.

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<u>[**Table of Contents**](#ia9c9151aad374d90a659f9800c73bdd8_10)</u>

**Item 3. Quantitative and Qualitative Disclosures about Market Risk**

***Market Risk***

Market risk is the risk that the market value or estimated fair value of the Company's assets, liabilities, and derivative financial instruments will decline as a result of changes in interest rates or financial market volatility, or that the Company's net income will be significantly reduced by interest-rate changes.

***Interest-Rate Risk***

The principal market risk facing the Company is interest-rate risk, which can occur in a variety of forms, including repricing risk, yield-curve risk, basis risk, and prepayment risk. Repricing risk occurs when the change in the average yield of either interest-earning assets or interest-bearing liabilities is more sensitive than the other to changes in market interest rates. Such a change in sensitivity could reflect a number of possible mismatches in the repricing opportunities of the Company's assets and liabilities. Yield-curve risk reflects the possibility that changes in the shape of the yield curve could have different effects on the Company's assets and liabilities. Basis risk occurs when different parts of the balance sheet are subject to varying base rates reflecting the possibility that the spread from those base rates will deviate. Prepayment risk is associated with financial instruments with an option to prepay before the stated maturity, often a disadvantage to person selling the option; this risk is most often associated with the prepayment of loans, callable investments, and callable borrowings.

***Asset/Liability Management***

Market risk and interest-rate risk management is governed by the Company's ALCO. The ALCO establishes exposure limits that define the Company's tolerance for interest-rate risk. The ALCO and the Company's Treasury Group measure and manage the composition of the balance sheet over a range of possible changes in interest rates while remaining responsive to market demand for loan and deposit products. The ALCO monitors current exposures versus limits and reports those results to the Board of Directors. The policy limits and guidelines serve as benchmarks for measuring interest-rate risk and for providing a framework for evaluation and interest-rate risk-management decision-making. The Company measures its interest-rate risk by using an asset/liability simulation model. The model considers several factors to determine the Company's potential exposure to interest-rate risk, including measurement of repricing gaps, duration, convexity, value-at-risk, market value of portfolio equity under assumed changes in the level of interest rates, the shape of yield curves, and general market volatility.

Management controls the Company's interest-rate exposure using several strategies, which include adjusting the maturities of securities in the Company's investment portfolio, limiting or expanding the terms of loans originated, limiting fixed-rate customer deposits with terms of more than five years, and adjusting maturities of wholesale funding. The Company limits this risk by restricting the types of MBSs it invests into those with limited average life changes under certain interest-rate-shock scenarios, or securities with embedded prepayment penalties. The Company also places limits on holdings of fixed-rate mortgage loans with maturities greater than five years. The Company enters into interest rate swaps as part of its interest rate risk management strategy. These interest rate swaps are designated as cash flow hedges and involve the receipt of variable rate amounts from a counterparty in exchange for the Company making fixed payments.

***Measuring Interest-Rate Risk***

As noted above, interest-rate risk can be measured by analyzing the extent to which the repricing of assets and liabilities are mismatched to create an interest-rate sensitivity gap. An asset or liability is said to be interest-rate sensitive within a specific period if it will mature or reprice within that period. The interest-rate sensitivity gap is defined as the difference between the amount of interest-earning assets maturing or repricing within a specific time period and the amount of interest-bearing liabilities maturing or repricing within that same time period. A gap is considered positive when the amount of interest-rate-sensitive assets exceeds the amount of interest-rate-sensitive liabilities. A gap is considered negative when the amount of interest-rate-sensitive liabilities exceeds the amount of interest-rate-sensitive assets. During a period of falling interest rates, a positive gap would tend to adversely affect net interest income. Conversely, during a period of rising interest rates, a positive gap position would tend to result in an increase in net interest income.

The Company's interest-rate risk position is measured using both income simulation and interest-rate sensitivity "gap" analysis. Income simulation is the primary tool for measuring the interest-rate risk inherent in the Company's balance sheet at a given point in time by showing the effect on net interest income, over a twelve-month period, of a variety of interest-rate shocks. These simulations take into account repricing, maturity, and prepayment characteristics of individual products. The ALCO reviews simulation results to determine whether exposure resulting from changes in market interest rates remains within established tolerance levels over a twelve-month horizon, and develops appropriate strategies to manage this exposure. The Company's interest-rate risk analysis remains modestly asset-sensitive as of June 30, 2025.

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The assumptions used in the Company's interest-rate sensitivity simulation discussed above are inherently uncertain and, as a result, the simulations cannot precisely measure net interest income or precisely predict the impact of changes in interest rates.

As of June 30, 2025, net interest income simulation indicated that the Company's exposure to changing interest rates was within tolerance. The ALCO reviews the methodology utilized for calculating interest-rate risk exposure and may periodically adopt modifications to this methodology. The following table presents the estimated impact of interest-rate changes on the Company's estimated net interest income over the twelve-month periods indicated while maintaining a flat balance sheet:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Estimated Exposure to Net Interest Income<br>over Twelve-Month Horizon Beginning** | **Estimated Exposure to Net Interest Income<br>over Twelve-Month Horizon Beginning** | **Estimated Exposure to Net Interest Income<br>over Twelve-Month Horizon Beginning** | **Estimated Exposure to Net Interest Income<br>over Twelve-Month Horizon Beginning** |
| | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** |
| **<u>Change in Interest Rate Levels</u>** | **Dollar<br>Change** | **Percent<br>Change** | **Dollar<br>Change** | **Percent<br>Change** |
| | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** |
| Up 400 basis points shock | $(3870) | (1.0)% | $14574 | 3.9% |
| Up 200 basis points ramp | 4009 | 1.1% | 7911 | 2.1% |
| Up 100 basis points ramp | 2453 | 0.7% | 4431 | 1.2% |
| Down 100 basis points ramp | (727) | (0.2)% | (3537) | (1.0)% |
| Down 200 basis points ramp | (3374) | (0.9)% | (8900) | (2.4)% |
| Down 400 basis points shock | (7468) | (2.0)% | (34637) | (9.3)% |

---

Asset sensitivity decreased at June 30, 2025 when compared to December 31, 2024 due to a decrease in cash equivalents and an increase in overall deposit beta assumptions. The estimated impact of a 400 basis point instantaneous increase in market interest rates on the Company's estimated net interest income over a twelve-month horizon was (1.0)% as of June 30, 2025, compared to 3.9% as of December 31, 2024. The estimated impact of a 400 basis point instantaneous decrease in market interest rates on the Company's estimated net interest income over a twelve-month horizon was (2.0)% as of June 30, 2025, compared to (9.3)% as of December 31, 2024.

The Company also utilizes interest-rate sensitivity "gap" analysis to provide a broader overview of its interest-rate risk profile. The interest-rate sensitivity gap is defined as the difference between interest-earning assets and interest-bearing liabilities maturing or repricing within a given time period. As of June 30, 2025, the Company's one-year cumulative gap was a negative $646.6 million, or 5.95% of total interest-earning assets, compared to a negative $1.0 billion, or 9.31% of total interest-earning assets, as of December 31, 2024.

The assumptions used in the Company's interest-rate sensitivity simulation discussed above are inherently uncertain and, as a result, the simulations cannot precisely measure net interest income or precisely predict the impact of changes in interest rates. For additional discussion on interest-rate risk see Item 7A, "Quantitative and Qualitative Disclosures about Market Risk" of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024.

The EVE at Risk Simulation is conducted in tandem with net interest income simulations to ascertain a longer term view of the Company's interest-rate risk position by capturing longer-term repricing risk and options risk embedded in the balance sheet. It measures the sensitivity of the economic value of equity to changes in interest rates. The EVE at Risk Simulation values only the current balance sheet and does not incorporate growth assumptions. As with the net interest income simulation, this simulation captures product characteristics such as loan resets, repricing terms, maturity dates, and rate caps and floors. Key assumptions include loan prepayment speeds, deposit pricing elasticity, and non-maturity deposit attrition rates. These assumptions can have significant impacts on valuation results as the assumptions remain in effect for the entire life of each asset and liability. The Company conducts non-maturity deposit behavior studies on a periodic basis to support deposit assumptions used in the valuation process. All key assumptions are subject to a periodic review.

EVE at Risk is calculated by estimating the net present value of all future cash flows from existing assets and liabilities using current interest rates as well as parallel shocks to the current interest-rate environment. The following table sets forth the estimated percentage change in the Company's EVE at Risk, assuming various shifts in interest rates.

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| | | |
|:---|:---|:---|
| | **Estimated Percent Change in Economic Value of Equity** | **Estimated Percent Change in Economic Value of Equity** |
|<br>**Parallel Shock in Interest Rate Levels** | **At June 30, 2025** | **At December 31, 2024** |
| Up 300 basis points | (5.5)% | (5.5)% |
| Up 200 basis points | (3.8)% | (4.1)% |
| Up 100 basis points | (1.2)% | (1.3)% |
| Down 100 basis points | (0.1)% | (0.8)% |
| Down 200 basis points | (1.8)% | (3.2)% |
| Down 300 basis points | (3.7)% | (6.6)% |

---

The Company's EVE-at-risk is modestly more liability sensitive from December 31, 2024 to June 30, 2025 driven by changes to the funding and asset mix.

**Item 4. Controls and Procedures**

**Controls and Procedures**

Under the supervision and with the participation of the Company's management, including the Company's Chief Executive Officer (Principal Executive Officer) and Chief Financial Officer (Principal Financial Officer), the Company has evaluated the effectiveness of its disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this report. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer considered that, as of the end of the period covered by this report, the Company's disclosure controls and procedures were effective to ensure that information required to be disclosed in the reports that the Company files or submits under the Exchange Act is (i) recorded, processed, summarized and reported, within the time periods specified in the SEC's rules and forms and (ii) accumulated and communicated to the Company's management, including its Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

The Company's management is responsible for establishing and maintaining adequate internal control over financial reporting as such term is defined in Exchange Act Rule 13a -15(f). The Company's internal control system was designed to provide reasonable assurance to its management and the Board of Directors regarding the preparation and fair presentation of published financial statements. All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. The Company's management assessed the effectiveness of its internal control over financial reporting as of the end of the period covered by this report. There has been no change in the Company's internal controls over financial reporting during the quarter ended June 30, 2025 that has materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Management's Report on Internal Control Over Financial Reporting as of December 31, 2024 and the related Report of Independent Registered Public Accounting Firm thereon appear on pages F-1 and F-2 of the Company's Annual Report on Form 10-K for the year ended December 31, 2024.

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**PART II — OTHER INFORMATION**

**Item 1. Legal Proceedings**

There are no material pending legal proceedings other than those that arise in the normal course of business. In the opinion of management, after consulting with legal counsel, the consolidated financial position and results of operations of the Company are not expected to be affected materially by the outcome of such proceedings.

**Item 1A.&nbsp;&nbsp;&nbsp;&nbsp;Risk Factors**

There have been no material changes in the risk factors described in Part I, Item 1A. "Risk Factors" of our Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on March 3, 2025.

**Item 2. Unregistered Sales of Equity Securities and Use of Proceeds**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)&nbsp;&nbsp;&nbsp;&nbsp; Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)&nbsp;&nbsp;&nbsp;&nbsp; Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable.

**Item 3. Defaults Upon Senior Securities**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)&nbsp;&nbsp;&nbsp;&nbsp; None.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)&nbsp;&nbsp;&nbsp;&nbsp; None.

**Item 4.&nbsp;&nbsp;&nbsp;&nbsp;Mine Safety Disclosures**

Not applicable.

**Item 5.&nbsp;&nbsp;&nbsp;&nbsp;Other Information**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) During the three months ended June 30, 2025, none of the Company's directors or officers (as defined in Rule 16a-1(f) of the Securities Exchange Act of 1934) adopted, terminated or modified a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement (as such terms are defined in Item 408 of Regulation S-K).

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**Item 6. Exhibits**

*Exhibits*

---

| | |
|:---|:---|
| Exhibit 31.1\* | <u>[Certification of Chief Executive Officer](brkl-ex311_20250630xq2.htm)</u> |
| Exhibit 31.2\* | <u>[Certification of Chief Financial Officer](brkl-ex312_20250630xq2.htm)</u> |
| Exhibit 32.1\*\* | <u>[Section 1350 Certification of Chief Executive Officer](brkl-ex321_20250630xq2.htm)</u> |
| Exhibit 32.2\*\* | <u>[Section 1350 Certification of Chief Financial Officer](brkl-ex322_20250630xq2.htm)</u> |
| 101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document |
| 101.SCH | XBRL Taxonomy Extension Schema Document |
| 101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.DEF | XBRL Taxonomy Extension Definition Linkbase Document |
| 101.LAB | XBRL Taxonomy Extension Label Linkbase Document |
| 101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
| 104 | Cover Page Interactive Data File (formatted in Inline XBRL and included in Exhibit 101) |

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_______________________________________________________________________________

\* Filed herewith

\*\* Furnished herewith

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | | |
|:---|:---|:---|
| | **BROOKLINE BANCORP, INC.** | **BROOKLINE BANCORP, INC.** |
| Date: August 7, 2025 | &nbsp;&nbsp;&nbsp;By: | /s/ Paul A. Perrault |
|  |  | Paul A. Perrault |
|  |  | Chief Executive Officer |
|  |  | (Principal Executive Officer) |
| Date: August 7, 2025 | &nbsp;&nbsp;&nbsp;By: | /s/ Carl M. Carlson |
|  |  | Carl M. Carlson |
|  |  | Co-President and Chief Financial Officer |
|  |  | (Principal Financial Officer) |

---

## Exhibit 31.1

**Exhibit 31.1** 

**Certification of Chief Executive Officer**

**Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002**

I, Paul A. Perrault, Chief Executive Officer, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Brookline Bancorp, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 7, 2025

---

| |
|:---|
| /s/ PAUL A. PERRAULT |
| Paul A. Perrault |
| *Chief Executive Officer* |
| *(Principal Executive Officer)* |

---

## Exhibit 31.2

**Exhibit 31.2** 

**Certification of Chief Financial Officer**

**Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002**

I, Carl M. Carlson, Chief Financial Officer, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Brookline Bancorp, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 7, 2025

---

| |
|:---|
| /s/ CARL M. CARLSON |
| Carl M. Carlson |
| *Co-President and Chief Financial Officer* |
| *(Principal Financial Officer)* |

---

## Exhibit 32.1

**Exhibit 32.1** 

**STATEMENT FURNISHED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT**

**OF 2002, 18 U.S.C. SECTION 1350** 

The undersigned, Paul A. Perrault, is the Chief Executive Officer of Brookline Bancorp, Inc. (the "Company").

This statement is being furnished in connection with the filing by the Company of the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2025 (the "Report").

By execution of this statement, I certify that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods covered by the Report.

This statement is authorized to be attached as an exhibit to the Report so that this statement will accompany the Report at such time as the Report is filed with the Securities and Exchange Commission pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350. It is not intended that this statement be deemed to be filed for purposes of the Securities Exchange Act of 1934, as amended.

Date: August 7, 2025

---

| |
|:---|
| /s/ PAUL A. PERRAULT |
| Paul A. Perrault |
| *Chief Executive Officer* |
| *(Principal Executive Officer)* |

---

## Exhibit 32.2

**Exhibit 32.2** 

**STATEMENT FURNISHED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT**

**OF 2002, 18 U.S.C. SECTION 1350**

The undersigned, Carl M. Carlson, is the Chief Accounting Officer of Brookline Bancorp, Inc. (the "Company").

This statement is being furnished in connection with the filing by the Company of the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2025 (the "Report").

By execution of this statement, I certify that:

1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and

2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods covered by the Report.

This statement is authorized to be attached as an exhibit to the Report so that this statement will accompany the Report at such time as the Report is filed with the Securities and Exchange Commission pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350. It is not intended that this statement be deemed to be filed for purposes of the Securities Exchange Act of 1934, as amended.

Date: August 7, 2025

---

| |
|:---|
| /s/ CARL M. CARLSON |
| Carl M. Carlson |
| *Co-President and Chief Financial Officer* |
| *(Principal Financial Officer)* |

---

<br>