Exhibit 99.2
January 25, 2023 1 4Q 2022 Financial Results
Forward Looking Statements 2 Certain statements contained in this press release that are not historical facts may constitute forward - looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We may also make forward - looking statements in other documents we file with the Securities and Exchange Commission ("SEC"), in our annual reports to shareholders, in press releases and other written materials, and in oral statements made by our officers, directors or employees. You can identify forward looking statements by the use of the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “assume,” “outlook,” “will,” “should,” and other expressions that predict or indicate future events and trends and which do not relate to historical matters, including statements regarding the Company’s business, credit quality, financial condition, liquidity and results of operations. Forward - looking statements may differ, possibly materially, from what is included in this press release due to factors and future developments that are uncertain and beyond the scope of the Company’s control. These include, but are not limited to, the Company’s ability to achieve the synergies and value creation contemplated by the acquisition of PCSB; turbulence in the capital and debt markets; changes in interest rates; competitive pressures from other financial institutions; general economic conditions (including inflation) on a national basis or in the local markets in which the Company operates; changes in consumer behavior due to changing political, business and economic conditions, or legislative or regulatory initiatives; changes in the value of securities and other assets in the Company’s investment portfolio; increases in loan and lease default and charge - off rates; the adequacy of allowances for loan and lease losses; decreases in deposit levels that necessitate increases in borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity incidents, fraud, natural disasters, the ongoing COVID - 19 pandemic and future pandemics; changes in regulation; the possibility that future credit losses may be higher than currently expected due to changes in economic assumptions and adverse economic developments; the risk that goodwill and intangibles recorded in the Company’s financial statements will become impaired; and changes in assumptions used in making such forward - looking statements. Forward - looking statements involve risks and uncertainties which are difficult to predict. The Company’s actual results could differ materially from those projected in the forward - looking statements as a result of, among others, the risks outlined in the Company’s Annual Report on Form 10 - K, as updated by its Quarterly Reports on Form 10 - Q and other filings submitted to the SEC. The Company does not undertake any obligation to update any forward - looking statement to reflect circumstances or events that occur after the date the forward - looking statements are made.
x Loans grew $223 million or 12% annualized. x Net interest margin of 3.80%. x ROA of 1.34% and ROTCE of 14.48%. x Q3 Efficiency ratio of 53.01%. x Revenues up $4.2 million; Operating Expenses up $2.7 million. x Merger charges down $0.5 million. 3 Fortress Balance Sheet / Asset Quality x NPAs to total assets of 0.17%. x Net charge - offs of 0.02% annualized. x The reserve for loan losses represents a coverage ratio of 129 basis points. x Loan growth required provision for credit losses of $5.7 million, up $2.9 million from Q3, or $0.03 EPS impact. Quarterly net income of $29.7 million and earnings per share of $0.39. Dividend of $0.135 per share. PCSB Financial acquisition closed January 1, 2023.
Summary Income Statement Some figures may differ slightly from press release due to rounding to foot schedules presented. 4 ▪ Net Income of $29.7 million or $0.39 per share. ▪ Net interest income increased $2.0 Security gains (losses) 0.3 - 0.3 - - 0.3 - million due to higher loan balances as Total Revenue 89.0 84.8 4.2 5% 82.2 6.8 8% the net interest margin remained at 3.80%. ▪ Noninterest income increased $1.9 million driven by strong loan participation income. compensation. ▪ Merger expenses of $0.6 million related to the PCSB acquisition. ▪ Pretax, Pre - provision net revenue increased $2.0 million from the prior quarter. ▪ The provision for credit losses was $5.7 million for the quarter, up $2.9 million from the prior quarter ($0.03 EPS impact) driven by strong loan portfolio growth. Noninterest expense 46.6 43.9 2.7 6% 42.9 3.7 9% Merger expense 0.6 1.1 (0.5) - 45% - 0.6 - Pretax, Preprov. Net Rev. 41.8 39.8 2.0 5% 39.3 2.5 6% Provision for credit losses 5.7 2.8 2.9 104% 0.8 4.9 613% Pretax income 36.1 37.0 (0.9) - 2% 38.5 (2.4) - 6% ▪ Noninterest expense increased $2.7 Provision for taxes 6.4 6.9 (0.5) - 7% 10.0 (3.6) - 36% million driven by incentive Net Income $ 29.7 $ 30.1 $ (0.4) - 1% $ 28.5 $ 1.2 4% EPS $ 0.39 $ 0.39 $ - 0% $ 0.37 $ 0.02 5% Avg diluted shares (000s) 77,065 77,008 57 0% 77,864 (799) - 1% Return on Assets 1.34% 1.40% - 0.06% 1.35% - 0.01% Return on Tangible Equity 14.48% 14.72% - 0.24% 13.83% 0.65% Net Interest Margin 3.80% 3.80% 0.00% 3.52% 0.28% Efficiency Ratio 53.01% 52.98% 0.03% 52.23% 0.78% Linked Quarter (LQ) Year over Year (YoY) $m, except per share amts 4Q22 3Q22 Δ %Δ 4Q21 Δ %Δ Net interest income $ 80.0 $ 78.0 $ 2.0 3% $ 71.5 $ 8.5 12% Noninterest income 8.7 6.8 1.9 28% 10.7 (2.0) - 19%
Margin – Yields and Costs 0.25% 3.25% 0.10% 0.05% 0.15% 0.74% 1.26% 1.51% 4.50% 4.39% 4.30% 4.64% 4.43% 4.00% 3.88% Fed Funds (upper) Prime 1M LIBOR SOFR Ameribor 2Y Treasury 5Y Treasury 10Y Treasury 4Q22 Prior Quarter LQ Δ $ millions Avg Bal Interest Yield Avg Bal Interest Yield Avg Bal Interest Yield Loans $ 7,565 $ 98.5 5.20% $ 7,335 $ 84.4 4.60% $ 230 $ 14.1 0.60% Investments & earning cash 793 5.0 2.53% 817 4.3 2.09% (24) 0.7 0.44% Interest Earning Assets $ 8,358 $ 103.5 4.95% $ 8,152 $ 88.7 4.35% $ 206 $ 14.8 0.60% Interest bearing deposits $ 4,793 $ 14.2 1.17% $ 4,994 $ 7.3 0.58% $ (201) $ 6.9 0.59% Borrowings 969 9.2 3.71% 505 3.3 2.53% 464 5.9 1.18% Interest Bearing Liabilities $ 5,762 $ 23.4 1.61% $ 5,499 $ 10.6 0.77% $ 263 $ 12.8 0.84% Net interest spread 3.34% 3.58% - 0.24% Net interest income, TEB / Margin $ 80.1 3.80% $ 78.1 3.80% $ 2.0 0.00% LESS: Tax Equivalent Basis (TEB) Adj. 0.1 0.1 - Net Interest Income $ 80.0 $ 78.0 $ 2.0 7.50% 12/31/2021 3/31/2022 6/30/2022 9/30/2022 12/31/2022 Some figures may differ slightly from press release due to rounding to foot schedules presented. 5
Summary Balance Sheet ▪ Loans increased $223 million or 12% on an annualized basis. ▪ The allowance for loan losses increased $4 million to reserve for the strong growth in the loan portfolio. ▪ ALLL coverage of 1.29%. ▪ Deposits decreased $214 million. ▪ Borrowings increased $674 million. ▪ Stockholders’ Equity increased $28 million due to quarterly earnings Total Liabilities 8,230 7,732 498 26% 7,608 622 8% and accounting period benefit of Stockholders' Equity 992 964 28 12% 995 (3) 0% marking to market securities Total Liabilities & Equity $ 9,222 $ 8,696 $ 526 24% $ 8,603 $ 943 11% classified as available for sale; partially offset by dividends paid. TBV per share $ 10.80 $ 10.43 $ 0.37 14% $ 10.73 $ 0.07 1% Actual shares outstanding (000) 76,844 76,839 5 0% 77,613 (769) - 1% Linked Quarter (LQ) Year over Year (YoY) $m, except per share amts 4Q22 3Q22 Δ %Δ annual. 4Q21 Δ %Δ Gross Loans, investment $ 7,644 $ 7,421 $ 223 12% $ 7,154 $ 490 7% Allowance for loan losses (98) (94) (4) 17% (99) 1 - 1% Net Loans 7,546 7,327 219 12% 7,055 491 7% Securities 657 676 (19) - 11% 721 (64) - 9% Cash & equivalents 383 113 270 956% 328 55 17% Intangibles 162 162 - 0% 163 (1) - 1% Other assets 475 418 57 55% 336 139 41% Total Assets $ 9,223 $ 8,696 $ 527 24% $ 8,603 $ 620 7% Deposits $ 6,522 $ 6,736 $ (214) - 13% $ 7,050 $ (528) - 7% Borrowings 1,433 759 674 355% 357 1,076 301% Reserve for unfunded loans 21 19 2 42% 15 6 40% Other Liabilities 254 218 36 66% 186 68 37% Tang. Equity / Tang. Assets 9.16% 9.39% - 0.23% 9.87% - 0.71% Loans / Deposits 117.20% 110.17% 7.03% 101.48% 15.72% ALLL / Gross Loans 1.29% 1.27% 0.02% 1.38% - 0.09% Some figures may differ slightly from press release due to rounding to foot schedules presented. 6
Loan and Deposit Composition 58% 10% 16% Loans 16% CRE C&I Equipment Consumer 28% 8% 14% Deposits 5% 33% 12% DDA NOW Savings MMkt CDs Brkd $ millions 4Q22 3Q22 Δ %Δ an. 4Q21 Δ %Δ CRE $ 4,404 $ 4,269 $ 135 13% $ 4,103 $ 301 7% Commercial 799 757 42 22% 713 86 12% Demand deposits $ 1,803 $ 1,849 $ (46) - 10% $ 1,888 $ (85) - 5% NOW 544 598 (54) - 36% 604 (60) - 10% ITS Savings 762 825 (63) - 31% 916 (154) - 17% PO S Money market 2,175 2,405 (230) - 38% 2,358 (183) - 8% D E CDs 928 925 3 1% 1,118 (190) - 17% Brokered deposits 310 134 176 525% 166 144 87% Total Deposits $ 6,522 $ 6,736 $ (214) - 13% $ 7,050 $ (528) - 7% - 1,217 1,224 1 1,176 1,218 (1) - 400% 41 14% 6 2% 68 1,106 1,164 (68) - 100% 111 10% 60 5% PPP Loans Equipment Finance Consumer Total Loans $ 7,644 $ 7,421 $ 223 12% $ 7,154 $ 490 7% Linked Quarter (LQ) Year over Year (YoY) LOANS ▪ Total loans increased $223 million with solid growth in all categories. Some figures may differ slightly from press release due to rounding to foot schedules presented. 7 ▪ Deposits, excluding brokered, declined $390 million driven primarily by investment - oriented funds seeking higher rates.
Capital Strength 8 ▪ As of December 31, 2022, the Company maintained capital well above regulatory “well capitalized” requirements. ▪ On November 15, 2021, the Company announced a $20 million stock buyback program authorizing management to repurchase stock through December 31, 2022. Approximately $13.8 million was used to acquire 956,341 shares under the program. The repurchase program was paused on June 24, 2022 and expired at the end of the year. Currently there is no board approved repurchase program. preliminary estimates* Regulatory BASEL III Requirements Brookline Board Policy Limits Capital in Excess of "Well Capitalized" $ millions Dec - 22 Minimum "Well Capitalized" Policy Minimums Operating Targets Excess Ratio Excess Capital Tier 1 Common / RWA 11.9% ≥ 4.5% ≥ 6.5% ≥ 7.5% ≥ 8.0% 5.4% $ 405.0 Tier 1 / RWA 12.0% ≥ 6.0% ≥ 8.0% ≥ 9.0% ≥ 9.5% 4.0% $ 301.9 Total Risk Based Capital 14.3% ≥ 8.0% ≥ 10.0% ≥ 11.0% ≥ 11.5% 4.3% $ 319.8 Leverage Ratio 10.4% ≥ 5.0% ≥ 5.0% ≥ 5.5% ≥ 6.0% 5.4% $ 468.8 * Regulatory capital ratios are preliminary estimates and may differ from numbers calculated in final Regulatory filings.
Regular Dividends Per Share The Board of Directors announced a dividend of $0.135 per share payable February 24, 2023 to stockholders of record on February 10, 2023. 0.046 9 $0.096 $0.110 $0.210 $0.316 $0.340 $0.340 $0.340 $0.340 $0.340 $0.340 $0.340 $0.340 $0.340 $0.340 $0.340 $0.340 $0.355 $0.360 $0.360 $0.395 $0.440 $0.460 $0.480 $0.520 $0.135 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Q1'23 The Board has increased the quarterly dividend twice a year since 2018, with a pause in 2020 due to pandemic uncertainty.
QUESTIONS Paul A. Perrault, Chairman and Chief Executive Officer Carl M. Carlson, Co - President and Chief Financial Officer Thank You. 10
APPENDIX RHODE ISLAND - PROVIDENCE LOWER HUDSON VALLEY BOSTON / EASTERN MASSACHUSETTS (30) (20) (15) Subsidiary of Eastern Funding 11
Non Performing Assets and Net Charge Offs Some figures may differ slightly from press release due to rounding to foot schedules presented. 12 4Q22 3Q22 Δ 4Q21 Δ Non Performing Assets (NPAs), in milli ons CRE $ 1.3 $ 3.1 $ (1.8) $ 10.9 $ (9.6) C&I 10.2 11.2 (1.0) 17.4 (7.2) Consumer 3.4 3.4 - 4.2 (0.8) Total Non Performing Loans (NPLs) 14.9 17.7 (2.8) 32.5 (17.6) Other real estate owned - - - - - Other repossessed assets 0.4 0.6 (0.2) 0.7 (0.3) Total NPAs $ 15.3 $ 18.3 $ (3.0) $ 33.2 $ (17.9) NPLs / Total Loans 0.19% 0.24% - 0.05% 0.45% - 0.26% NPAs / Total Assets 0.17% 0.21% - 0.04% 0.39% - 0.22% Net Charge Offs (NCOs), in millions CRE loans $ - $ - $ - $ - $ - C&I loans 0.3 (0.2) 0.5 2.1 (1.8) Consumer loans - - - - - Total Net Charge Offs $ 0.3 $ (0.2) $ 0.5 $ 2.1 $ (1.8) NCOs / Loans (annualized) 0.02% - 0.01% 0.03% 0.12% - 0.10% Linked Quarter (LQ) Year over Year (YoY)
Investment CRE 47% Commercial 19% Equipment Finance 18% Consumer 16% Perm Constr Total % Total % Total % Total % Apartment $ 992 $ 62 $ 1,054 29% Food & Lodging $ 264 18% Retail 565 13 578 16% Manufacturing 170 12% Office 630 5 635 18% Finance and Ins 145 10% Industrial 439 13 452 13% Wholesale Trade 108 7% Mixed Use 350 23 373 10% Professional 102 7% 1 - 4 Family 7 22 29 1% RE Agents / Brokers 165 11% Hotel 144 - 144 4% Health Care / Social 106 7% Land - 46 46 1% Construction 45 3% Other 275 23 298 8% Retail 115 8% Total $ 3,402 $ 207 $ 3,609 100% Arts, Entert., Rec 68 5% Condo 47 3% Trans./Warehousing 34 2% Other Services 89 6% Residential Home Equity Other Consumer Purchase Mtge $ 838 68% 323 26% 56 5% 7 1% Total $ 1,224 100% Total $ 1,458 100% Total $ 1,353 100% Eastern Funding Core Laundry $ 563 42% Fitness/Macrolease 184 14% Grocery 53 4% Dry Cleaning 16 1% Restaurant 13 1% Car Wash 13 1% EF CRE 140 10% Other EF 20 1% Specialty Vehicle Tow Truck 160 12% Heavy Tow 62 5% FedEx 45 3% Trailer 20 1% Other Vehicle 64 5% Total Loans Outstanding $ 7,644 Major Loan Segments with Industry Breakdown $3,609 $1,458 $1,353 $1,224 4Q22 Loans outstanding ($millions) Owner Occupied CRE included in Commercial and Equipment Finance Some figures may differ slightly from press release due to rounding to foot schedules presented. 13
CRE – Loan to Value (LTV) 39% 37% 44% 29% 44% 3% 30% 38% 44% 47% 53% 50% 62% 43% 97% 49% 51% 40% 14% 10% 5% 5% 13% 21% 11% 14% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Apartment Retail Office Medical Hotel Restaurant Other Exposures by LTV Industrial 50% and lower Mixed Use 50 - 70 70 - 80 80+ Non Owner Occupied CRE and Multifamily Exposures at December 31, 2022. 38% 50% 1% 11% 14 Overall 53% LTV
24% 45% 24% 25% 22% 21% 52% 54% 18% 8% 9% 7% 1% 3% 2% 0% 6% 5% 10% 8% 8% 11% 25% 16% 9% 10% 10% 7% 17% 11% 3% 14% 20% 25% 10% 7% 12% 3% 5% 15% 7% 0% 4% 3% 15% 18% 12% 28% 36% 19% 33% 13% 27% 17% 17% 11% 9% 23% 3% 19% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Apartment Retail Office 2016 and Before Restaurant Other Non Owner Occupied CRE and Multifamily Exposures at December 31, 2022. Exposures by Year of Origination Industrial Mixed Use Medical Hotel 2017 2018 2019 2020 2021 2022 15 % CRE - Vintage 21 % 9 % 12 % 9 % 6 % 28 % 15
Consumer Loans – LTV / FICO 16 700+ 87% 650 - 699 7% 599 - 600 - 649 1% N/A 3% 50% or less 30% 50% - 69% 36% 70% - 80% 31% 80%+ 3% 50% or less 33% 50% - 69% 31% 70% - 80% 33% 80%+ 3% Resid. 1 - 4 59% LTV 2% Resid. 1 - 4 FICO Home Equity FICO 700+ 94% Home Equity 56% LTV 4Q22
Key Economic Variables - CECL Select Economic Variables from the Moody’s Baseline Forecasts ▪ The Company uses Moody’s forecasts as inputs into the models used to estimate credit losses under CECL. ▪ The December Baseline economic forecast was a bit mixed from the September forecast. GDP slightly higher, but with higher Unemployment and lower Commercial Real Estate valuations versus last quarter’s estimates. ▪ Inflation concerns and the significant rise in interest rates is expected to slow the economy and has increased the probability of a recession, however Moody’s baseline forecast does not reflect a recession. We have maintained our forecast weightings at 60% Moderate Recession and 40% Baseline. 17 Scenarios: 4Q'22 CEC L - Baselin e 3Q'22 CEC L - Baselin e Change from Prior Fore cast 2022 2023 2024 2022 2023 2024 2022 2023 2024 GDP 19,985 20,170 20,579 19,746 20,017 20,533 239.0 153.0 46.0 Unemployment Rate 3.7 4.0 4.1 3.7 3.9 3.8 - 0.1 0.3 CRE Price Index 359.3 354.4 367.8 375.6 374.3 393.4 (16.3) (19.9) (25.6) Fed Fund Rate 1.70 4.70 4.20 1.60 3.60 3.60 0.1 1.1 0.6 10 Treasury 2.90 4.20 4.00 2.70 3.50 3.50 0.2 0.7 0.5 Weightings of Moody's Forecast for CECL Model Moderate Recession (S3) Baseline Stronger Near Term Growth (S1) 4Q 2022 60% 40% 0% 3Q 2022 60% 40% 0% 2Q 2022 60% 40% 0% 1Q 2022 60% 40% 0% 4Q 2021 60% 40% 0% 3Q 2021 60% 40% 0% 2Q 2021 60% 40% 0% 1Q 2021 60% 40% 0% 4Q 2020 60% 40% 0% 3Q 2020 30% 40% 30% 2Q 2020 30% 40% 30% 1Q 2020 30% 40% 30%
Securities Portfolio ▪ Highly liquid, risk averse securities portfolio with moderate duration and minimal extension risk. The entire investment portfolio is classified as Available for Sale. ▪ The mark to market on the portfolio is recorded in Accumulated Other Comprehensive Income in Stockholders’ Equity on an after tax basis and represents a reduction in stockholders’ equity of approximately - 5.9%. There is no impact on regulatory capital. UST 50% 18 Agency 23% Corp 2% CMO 3% MBS 22% 4Q22 $ in millions Current Par Book Value Fair Value Unreal. G/L Book Yield Duration U.S. Treasuries $ 365 $ 363 $ 331 $ (32) 2.21% 3.8 Agency Debentures 167 176 152 (24) 1.62% 4.6 Corp Bonds 14 14 14 - 2.59% 1.0 Agency MBS 158 160 141 (19) 2.15% 5.0 Agency CMO 20 20 18 (2) 1.86% 3.1 Other 1 1 1 - 1.97% 2.0 Total $ 725 $ 734 $ 657 $ (77) 2.05% 4.2 Some figures may differ slightly from press release due to rounding to foot schedules presented.
Interest Rate Risk Floating (<3m) 17% Adj. 38% Fixed 45% 4Q22 Loan Originations, $687 million Total Loan Portfolio Mix – Duration 1.6 years - 0.9% - 1.5% - 2.0% 0.3% 0.5% 0.6% 0.5% 0.6% 1.3% 2.2% - 0.5% 1Q23 2.8% 2Q23 3Q23 4Q23 Cumulative Net Interest Income Change by Quarter 12/31/2022 Flat Balance Sheet (ex PCSB) , simulations reflect a product weighted beta of 34% on total deposits. - 100bps Ramp Forward - Implied Rates +200bps Ramp Floating (<3m) 22% 19 Adj. 42% Fixed 36%
Deposit and Funding Betas - % change in cost versus change in Federal Funds Rate ▪ The Federal Reserve began increasing the Federal Funds rate in March 2022 and has increased rates 425 basis points through December 2022. ▪ Q1: 0.25% ▪ Q2: 1.25% ▪ Q3: 1.50% ▪ Q4: 1.25% *Betas reflect the change in quarterly funding costs as a percentage of the change in the targeted Federal Funds Rate over the same period. ▪ While the Betas for the product groupings do not reflect the flow of funds in or out of a product category, the overall Interest Bearing, Total Deposit and Total Funding lines capture the period impact. ▪ As an example, year - to - date, the Federal Funds Rate has increased 425 basis points. Brookline Bancorp’s cost of total deposits has increased 14.5% of the 425 basis points or 62 basis points. ▪ In the latest quarter or linked quarter (LQ), the Federal Funds Rate increased 125 basis points and the cost of total deposits increased 34.0% or 43 basis points. Through the Cycle** BETAS* Since 12/21 LQ Chg NOW 2.3% - 16.3% Savings 11.4% 22.7% MMA 25.3% 54.4% CDs 11.9% 39.2% Brokerd CDs 90.2% 246.4% Total Interest Bearing 20.2% 47.2% DDA 0.0% 0.0% Total Deposit Costs 14.5% 34.0% 4Q22 Borrowings 39.6% 95.8% Total Funding Costs 21.6% 52.0% Change in Fed Funds Rate 4.25% 1.25% * Betas based on reported quarterly cost of funds ** Through the cycle betas reflect the change in cost of funds as a percentage of the change in the Federal Funds Rate with the starting point for the analysis being the quarter ended 12/31/2021. The Federal Funds Rate (upper) was 0.25% at 12/31/2021. 20