Brookline Bancorp Reports $22M Net Income in Q2 2025, Announces Merger with Berkshire Hills Bancorp

Brookline Bancorp, Inc. reported a net income of $22.0 million for the second quarter of 2025, translating to earnings per share of $0.25, a 34.5% increase from $16.4 million, or $0.18 per share, in the same period last year. For the first half of 2025, net income reached $41.1 million, up 32.5% from $31.0 million in the prior year. The growth in profitability was primarily driven by an increase in net interest income, which rose by $8.7 million to $88.7 million for the quarter, and a decrease in non-interest expenses by $1.1 million. However, the provision for credit losses increased by $1.4 million, reflecting a rise in specific reserves on nonperforming credits.

The company’s total assets decreased by $336.6 million, or 5.7%, to $11.6 billion as of June 30, 2025, compared to $11.9 billion at the end of 2024. This decline was largely attributed to a reduction in loans and leases, which fell by $196.9 million to $9.6 billion. The commercial loan portfolio, which includes commercial real estate loans and commercial loans and leases, accounted for 83.5% of total loans, decreasing by $216.9 million. Despite the overall decline in loans, total deposits increased by $59.6 million to $9.0 billion, with core deposits rising to 70.6% of total deposits.

In terms of operational metrics, the company reported a nonperforming asset ratio of 0.55% of total assets, down from 0.59% at the end of 2024. The allowance for loan and lease losses increased to $126.7 million, representing 1.32% of total loans, compared to 1.28% at the end of the previous year. The company’s capital ratios remained strong, with a common equity Tier 1 capital ratio of 11.05% and a total risk-based capital ratio of 13.03%, both exceeding regulatory requirements.

Strategically, Brookline Bancorp is in the process of merging with Berkshire Hills Bancorp, with the transaction expected to close in the second half of 2025, pending regulatory approvals. The merger aims to enhance the company’s market presence and operational efficiencies. The company continues to focus on growing its commercial lending business while managing credit risk and maintaining a strong capital position. Looking ahead, management anticipates that the net interest margin will stabilize, influenced by the current interest rate environment and competitive pressures in the banking sector.