• Brookline Bancorp Announces First Quarter Results

    Source: Nasdaq GlobeNewswire / 28 Apr 2021 15:05:02   America/Chicago

    Net Income of $26.5 million, EPS of $0.34

    Quarterly Dividend Increase of 4.3%

    BOSTON, April 28, 2021 (GLOBE NEWSWIRE) -- Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced net income of $26.5 million, or $0.34 per basic and diluted share, for the first quarter of 2021, compared to net income of $26.7 million, or $0.34 per basic and diluted share, for the fourth quarter of 2020, and net loss of $(17.3) million, or $(0.22) per basic and diluted share, for the first quarter of 2020.

    “Our Company’s solid performance continued in the first quarter and I am pleased to announce an increase in our dividend to $0.12 per share,” Paul Perrault, President and Chief Executive Officer of the Company continued, “We are proud of the work that our employees have done in supporting our customers and communities over the past year and we look forward to a continued strong performance for the remainder of the year.”

    BALANCE SHEET

    Total assets at March 31, 2021 decreased $382.6 million to $8.6 billion from $8.9 billion at December 31, 2020, and increased $98.2 million from $8.5 billion at March 31, 2020. At March 31, 2021, total loans and leases were $7.3 billion, representing a decrease of $2.0 million from December 31, 2020, and an increase of $445.0 million from March 31, 2020.

    On December 27, 2020, the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (the “Economic Aid Act”) was signed into law. The Economic Aid Act created a new round of Paycheck Protection Program (“PPP”) loans administered by the Small Business Administration (“SBA”). The Company participated in the new round of PPP lending and, as of March 31, 2021, has funded 1,342 PPP loans totaling $249.5 million. The Company funded 2,922 PPP loans totaling $581.7 million in the first two rounds of PPP funding which closed on August 8, 2020, of which $355.3 million remains outstanding, net of deferred fees and costs, at March 31, 2021.

    Total investment securities at March 31, 2021 decreased $15.9 million to $730.4 million from $746.3 million at December 31, 2020, and decreased $33.7 million from $764.1 million at March 31, 2020. Total cash and cash equivalents at March 31, 2021 decreased $304.0 million to $130.9 million from $434.9 million at December 31, 2020, and decreased $209.8 million from $340.8 million at March 31, 2020. As of March 31, 2021, total investment securities and total cash and cash equivalents represented 10.1 percent of total assets as compared to 13.2 percent and 13.1 percent as of December 31, 2020 and March 31, 2020, respectively.

    Total deposits at March 31, 2021 decreased $43.9 million to $6.87 billion from $6.91 billion at December 31, 2020 and increased $1.0 billion from $5.9 billion at March 31, 2020.

    Total borrowed funds at March 31, 2021 decreased $274.2 million to $546.0 million from $820.2 million at December 31, 2020 and decreased $745.8 million from $1.3 billion at March 31, 2020.

    The ratio of stockholders’ equity to total assets was 11.04 percent at March 31, 2021, as compared to 10.53 percent at December 31, 2020, and 10.78 percent at March 31, 2020. The ratio of tangible stockholders’ equity to tangible assets (non-GAAP) was 9.31 percent at March 31, 2021, as compared to 8.86 percent at December 31, 2020, and 9.02 percent at March 31, 2020. Tangible book value per share (non-GAAP) increased $0.05 from $9.96 at December 31, 2020 to $10.01 at March 31, 2021, compared to $9.49 at March 31, 2020.

    NET INTEREST INCOME

    Net interest income increased $0.9 million to $69.1 million during the first quarter of 2021 from $68.2 million at the quarter ended December 31, 2020. The net interest margin increased 16 basis points to 3.39 percent for the three months ended March 31, 2021 from 3.23 percent for the three months ended December 31, 2020.

    NON-INTEREST INCOME

    Total non-interest income for the quarter ended March 31, 2021 increased $0.6 million to $4.8 million from $4.2 million for the quarter ended December 31, 2020. The increase was primarily driven by an increase of $0.6 million in gain on sales of loans and leases and an increase of $0.3 million in loan level derivative income, net, partially offset by a decrease of $0.3 million in other non-interest income.

    PROVISION FOR CREDIT LOSSES

    On January 1, 2020, the Company adopted ASU 2016-13 "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", commonly referred to as CECL. 

    The Company recorded a negative provision for credit losses of $2.1 million for the quarter ended March 31, 2021, compared to a negative provision for credit losses of $2.1 million for the quarter ended December 31, 2020.

    Total net charge-offs for the first quarter of 2021 were $1.8 million compared to $4.4 million in the fourth quarter of 2020. The decrease is primarily driven by a decrease of $3.4 million in the net charge-offs of commercial real estate loans, partially offset by an increase in the net charge-offs of commercial loans and equipment financing of $0.3 million and $0.5 million, respectively. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis decreased to 10 basis points for the first quarter of 2021 from 24 basis points for the fourth quarter of 2020.

    The allowance for loan and lease losses represented 1.51 percent of total loans and leases at March 31, 2021, compared to 1.57 percent at December 31, 2020, and 1.66 percent at March 31, 2020. Excluding PPP loans, the allowance for loan and lease losses represents 1.65 percent coverage at March 31, 2021 compared to 1.69 percent at December 31, 2020.

    ASSET QUALITY

    The ratio of nonperforming loans and leases to total loans and leases was 0.43 percent at March 31, 2021, a decrease from 0.53 percent at December 31, 2020. Total nonaccrual loans and leases decreased $7.4 million to $31.0 million at March 31, 2021 from $38.4 million at December 31, 2020. The ratio of nonperforming assets to total assets was 0.44 percent at March 31, 2021, a decrease from 0.50 percent at December 31, 2020. Total nonperforming assets decreased $7.6 million to $37.4 million at March 31, 2021 from $45.0 million at December 31, 2020.

    From March 1, 2020 through the earlier of January 1, 2022 or 60 days after the termination date of the national emergency declared by the President on March 13, 2020 concerning the COVID-19 outbreak (the “national emergency”), a financial institution may elect to suspend the requirements under accounting principles generally accepted in the U.S. for loan modifications related to the COVID-19 pandemic that would otherwise be categorized as a troubled debt restructured, including impairment accounting. This troubled debt restructuring relief applies for the term of the loan modification that occurs during the applicable period for a loan that was not more than 30 days past due as of December 31, 2019. Financial institutions are required to maintain records of the volume of loans involved in modifications to which troubled debt restructuring relief is applicable. As of March 31, 2021, approximately 88 percent of loans granted an initial loan payment deferral have returned to payment status and 341 credits totaling $126 million or 1.7 percent of total loans outstanding are operating under modified terms.

    NON-INTEREST EXPENSE

    Non-interest expense for the quarter ended March 31, 2021 increased $0.8 million to $40.8 million from $40.0 million for the quarter ended December 31, 2020. The increase was primarily driven by increases of $0.8 million in compensation and employee benefits expense, $0.3 million in equipment and data processing, $0.2 million in occupancy and $0.2 million in other non-interest expense, partially offset by decreases of $0.6 million in FDIC insurance expense and $0.1 million in professional services.

    PROVISION FOR INCOME TAXES

    The effective tax rate was 24.9 percent for the three months ended March 31, 2021 compared to 22.7 percent for the three months ended December 31, 2020 and 27.5 percent for the three months ended March 31, 2020.

    RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

    The annualized return on average assets increased to 1.21 percent during the first quarter 2021 from 1.20 percent for the fourth quarter of 2020.

    The annualized return on average stockholders' equity decreased to 11.18 percent during the first quarter of 2021 from 11.38 percent for the fourth quarter of 2020. The annualized return on average tangible stockholders’ equity decreased to 13.51 percent for the first quarter of 2021 from 13.79 percent for the fourth quarter of 2020.

    DIVIDEND DECLARED

    The Company’s Board of Directors approved a dividend of $0.12 per share for the quarter ended March 31, 2021, an increase of half a cent from the prior period. The dividend will be paid on May 28, 2021 to stockholders of record on May 14, 2021, representing an increase of 4.3 percent from the prior quarter.

    CONFERENCE CALL

    The Company will conduct a conference call/webcast at 1:30 PM Eastern Daylight Time on Thursday, April 29, 2021 to discuss the results for the quarter, business highlights and outlook. A copy of the Earnings Presentation is available on the Company’s website, www.brooklinebancorp.com. To listen to the call and view the Company’s Earnings Presentation, please join the call via https://services.choruscall.com/links/brkl210429.html. To listen to the call without access to the slides, interested parties may dial 877-504-4120 (United States) or 412-902-6650 (internationally) and ask for the Brookline Bancorp, Inc. conference call. A recorded playback of the call will be available for one week following the call on the Company’s website under “Investor Relations” or by dialing 877-344-7529 (United States) or 412-317-0088 (internationally) and entering the passcode: 10154349.

    ABOUT BROOKLINE BANCORP, INC.

    Brookline Bancorp, Inc., a bank holding company with $8.6 billion in assets and branch locations in Massachusetts and Rhode Island, is headquartered in Boston, Massachusetts and operates as the holding company for Brookline Bank and Bank Rhode Island (the "banks"). The Company provides commercial and retail banking services, cash management and investment services to customers throughout Central New England. More information about Brookline Bancorp, Inc. and its banks can be found at the following websites: www.brooklinebank.com and www.bankri.com. 

    FORWARD-LOOKING STATEMENTS

    Certain statements contained in this press release that are not historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements contained in this press release that do not describe historical or current facts are forward-looking statements, including statements regard the potential effects of COVID-19 on the Company’s business, credit quality, financial condition, liquidity and results of operations. Forward-looking statements made with regard to the potential effects of COVID-19 on the Company’s business, financial condition, credit quality, liquidity and results of operation 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 included, but are not limited to, continued deterioration in employment levels, general business and economic conditions on a national basis and 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; the possibility that future credit losses may be higher than currently expected; reputational risk relating to the Company’s participation in the Paycheck Protection Program and other pandemic-related legislative and regulatory initiatives and programs; and turbulence in capital and debt markets. 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 Securities and Exchange Commission ("SEC"). The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.

    BASIS OF PRESENTATION

    The Company's consolidated financial statements have been prepared in conformity with generally accepted accounting principles (“GAAP”) as set forth by the Financial Accounting Standards Board in its Accounting Standards Codification and through the rules and interpretive releases of the SEC under the authority of federal securities laws. Certain amounts previously reported have been reclassified to conform to the current period's presentation.

    NON-GAAP FINANCIAL MEASURES

    The Company uses certain non-GAAP financial measures, such as operating earnings, operating return on average assets, operating return on average tangible assets, operating return on average stockholders' equity, operating return on average tangible stockholders' equity, the allowance for loan and lease losses related to originated loans and leases as a percentage of originated loans and leases, tangible book value per common share, tangible stockholders’ equity to tangible assets, return on average tangible assets (annualized) and return on average tangible stockholders' equity (annualized). These non-GAAP financial measures provide information for investors to effectively analyze financial trends of ongoing business activities, and to enhance comparability with peers across the financial services sector. A detailed reconciliation table of the Company's GAAP to the non-GAAP measures is attached.

    INVESTOR RELATIONS:

    Contact:         
    Carl M. Carlson
    Brookline Bancorp, Inc.
    Chief Financial Officer
    (617) 425-5331
    ccarlson@brkl.com 

     
    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Selected Financial Highlights (Unaudited)
     
     At and for the Three Months Ended
     March 31, 2021
    		December 31, 2020
    		September 30, 2020
    		June 30, 2020
    		March 31, 2020
     (Dollars In Thousands Except per Share Data)
    Earnings Data:     
    Net interest income$69,109 $68,225 $65,938 $64,288 $61,712 
    (Credit) provision for credit losses (2,147) (2,103) 4,528  5,347  54,114 
    Non-interest income 4,794  4,219  4,862  6,235  9,328 
    Non-interest expense 40,811  40,038  40,947  39,109  40,748 
    Income (loss) before provision for income taxes 35,239  34,509  25,325  26,067  (23,822)
    Net income (loss) attributable to Brookline Bancorp, Inc. 26,454  26,663  18,679  19,571  (17,276)
          
    Performance Ratios:     
    Net interest margin (1) 3.39% 3.23% 3.08% 3.09% 3.31%
    Interest-rate spread (1) 3.15% 3.03% 2.85% 2.75% 2.91%
    Return on average assets (annualized) 1.21% 1.20% 0.83% 0.88% (0.87)%
    Return on average tangible assets (annualized) (non-GAAP) 1.24% 1.22% 0.84% 0.90% (0.89)%
    Return on average stockholders' equity (annualized) 11.18% 11.38% 7.99% 8.45% (7.30)%
    Return on average tangible stockholders' equity (annualized) (non-GAAP) 13.51% 13.79% 9.70% 10.28% (8.84)%
    Efficiency ratio (2) 55.22% 55.27% 57.83% 55.46% 57.36%
          
    Per Common Share Data:     
    Net income (loss) — Basic$0.34 $0.34 $0.24 $0.25 $(0.22)
    Net income (loss) — Diluted 0.34  0.34  0.24  0.25  (0.22)
    Cash dividends declared 0.120  0.115  0.115  0.115  0.115 
    Book value per share (end of period) 12.10  12.05  11.84  11.75  11.57 
    Tangible book value per share (end of period) (non-GAAP) 10.01  9.96  9.77  9.67  9.49 
    Stock price (end of period) 15.00  12.04  8.65  10.08  11.28 
          
    Balance Sheet:     
    Total assets$8,559,810 $8,942,424 $9,000,192 $9,069,667 $8,461,591 
    Total loans and leases 7,267,552  7,269,553  7,396,358  7,407,697  6,822,527 
    Total deposits 6,866,786  6,910,696  6,792,523  6,440,233  5,889,938 
    Brookline Bancorp, Inc. stockholders’ equity 945,399  941,778  935,558  926,413  912,568 
          
    Asset Quality:     
    Nonperforming assets$37,403 $44,963 $39,365 $42,754 $41,122 
    Nonperforming assets as a percentage of total assets 0.44% 0.50% 0.44% 0.47% 0.49%
    Allowance for loan and lease losses$109,837 $114,379 $119,971 $119,553 $113,181 
    Allowance for loan and lease losses as a percentage of total loans and leases 1.51% 1.57% 1.62% 1.61% 1.66%
    Net loan and lease charge-offs$1,760 $4,381 $4,963 $1,383 $2,234 
    Net loan and lease charge-offs as a percentage of average loans and leases (annualized) 0.10% 0.24% 0.27% 0.08% 0.13%
          
    Capital Ratios:     
    Stockholders’ equity to total assets 11.04% 10.53% 10.39% 10.21% 10.78%
    Tangible stockholders’ equity to tangible assets (non-GAAP) 9.31% 8.86% 8.73% 8.56% 9.02%
          
    (1) Calculated on a fully tax-equivalent basis.     
    (2) Calculated as non-interest expense as a percentage of net interest income plus non-interest income.     
          


    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Consolidated Balance Sheets (Unaudited)
     
     March 31, 2021December 31, 2020September 30, 2020
    		June 30, 2020
    		March 31, 2020
    ASSETS(In Thousands Except Share Data)
    Cash and due from banks$41,284 $36,069 $33,818 $38,522 $86,996 
    Short-term investments 89,643  398,848  283,515  216,394  253,772 
    Total cash and cash equivalents 130,927  434,917  317,333  254,916  340,768 
    Investment securities available-for-sale 729,901  745,822  783,867  854,505  761,539 
    Investment securities held-to-maturity -  -  -  -  - 
    Equity securities held-for-trading 518  526  525  1,992  2,558 
    Total investment securities 730,419  746,348  784,392  856,497  764,097 
    Loans and leases:     
    Commercial real estate loans 3,790,341  3,823,826  3,835,372  3,837,703  3,762,158 
    Commercial loans and leases 2,324,202  2,274,899  2,354,613  2,361,463  1,826,866 
    Consumer loans 1,153,009  1,170,828  1,206,373  1,208,531  1,233,503 
    Total loans and leases 7,267,552  7,269,553  7,396,358  7,407,697  6,822,527 
    Allowance for loan and lease losses (109,837) (114,379) (119,971) (119,553) (113,181)
    Net loans and leases 7,157,715  7,155,174  7,276,387  7,288,144  6,709,346 
    Restricted equity securities 40,400  49,786  61,715  71,638  68,472 
    Premises and equipment, net of accumulated depreciation 72,524  71,568  72,441  73,127  73,786 
    Right-of-use asset operating leases 23,180  24,143  23,492  24,343  24,789 
    Deferred tax asset 42,857  40,129  42,269  42,683  38,141 
    Goodwill 160,427  160,427  160,427  160,427  160,427 
    Identified intangible assets, net of accumulated amortization 2,920  3,152  3,464  3,775  4,087 
    Other real estate owned and repossessed assets 6,383  6,515  1,413  1,454  2,038 
    Other assets 192,058  250,265  256,859  292,663  275,640 
    Total assets$8,559,810 $8,942,424 $9,000,192 $9,069,667 $8,461,591 
    LIABILITIES AND STOCKHOLDERS' EQUITY     
    Deposits:     
    Demand checking accounts$1,724,170 $1,592,205 $1,550,267 $1,603,037 $1,175,329 
    NOW accounts 481,988  513,948  459,902  417,622  361,854 
    Savings accounts 724,504  701,659  716,630  657,758  653,026 
    Money market accounts 2,192,468  2,018,977  1,878,258  1,809,868  1,676,092 
    Certificate of deposit accounts 1,273,105  1,389,998  1,492,913  1,601,768  1,669,509 
    Brokered deposit accounts 470,551  693,909  694,553  350,180  354,128 
    Total deposits 6,866,786  6,910,696  6,792,523  6,440,233  5,889,938 
    Borrowed funds:     
    Advances from the FHLBB 378,646  648,849  841,169  1,267,570  1,137,431 
    Subordinated debentures and notes 83,783  83,746  83,707  83,668  83,630 
    Other borrowed funds 83,574  87,652  80,169  55,431  70,743 
    Total borrowed funds 546,003  820,247  1,005,045  1,406,669  1,291,804 
    Operating lease liabilities 23,180  24,143  23,492  24,343  24,789 
    Mortgagors’ escrow accounts 6,483  5,901  6,429  6,467  7,441 
    Reserve for unfunded credits 13,705  13,071  13,964  14,816  17,222 
    Accrued expenses and other liabilities 158,254  226,588  223,181  250,726  317,829 
    Total liabilities 7,614,411  8,000,646  8,064,634  8,143,254  7,549,023 
    Stockholders' equity:     
    Brookline Bancorp, Inc. stockholders’ equity:     
    Common stock, $0.01 par value; 200,000,000 shares authorized; 85,177,172 shares issued, 85,177,172 shares issued, 85,177,172 shares issued, 85,177,172 shares issued, and 85,177,172 shares issued, respectively 852  852  852  852  852 
    Additional paid-in capital 737,882  737,178  736,294  738,155  737,422 
    Retained earnings, partially restricted 282,301  264,892  247,336  237,808  227,359 
    Accumulated other comprehensive income 2,082  16,490  18,782  19,538  16,947 
    Treasury stock, at cost;     
    6,534,602, 6,525,783, 5,629,854, 5,859,708, and 5,862,811 shares, respectively (77,463) (77,343) (67,376) (69,572) (69,617)
    Unallocated common stock held by the Employee Stock Ownership Plan;     
    44,502, 51,114, 58,227, 65,334, and 72,441 shares, respectively (255) (291) (330) (368) (395)
    Total stockholders' equity 945,399  941,778  935,558  926,413  912,568 
    Total liabilities and stockholders' equity$8,559,810 $8,942,424 $9,000,192 $9,069,667 $8,461,591 


    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Consolidated Statements of Income (Unaudited)
     
     Three Months Ended
     March 31, 2021December 31, 2020September 30, 2020June 30, 2020March 31, 2020
     (In Thousands Except Share Data)
    Interest and dividend income:     
    Loans and leases$75,009 $76,583 $76,240$77,416$79,559 
    Debt securities 3,118  3,335  3,746 3,701 2,976 
    Marketable and restricted equity securities 301  490  672 908 778 
    Short-term investments 39  59  46 99 209 
    Total interest and dividend income 78,467  80,467  80,704 82,124 83,522 
    Interest expense:     
    Deposits 6,707  8,825  10,583 12,778 16,240 
    Borrowed funds 2,651  3,417  4,183 5,058 5,570 
    Total interest expense 9,358  12,242  14,766 17,836 21,810 
    Net interest income 69,109  68,225  65,938 64,288 61,712 
    (Credit) provision for credit losses (2,147) (2,103) 4,528 5,347 54,114 
    Net interest income after provision for credit losses 71,256  70,328  61,410 58,941 7,598 
    Non-interest income:     
    Deposit fees 2,281  2,358  2,305 1,929 2,458 
    Loan fees 599  588  397 513 550 
    Loan level derivative income, net 474  145  527 1,440 2,156 
    (Loss) gain on investment securities, net (7) -  54 586 1,330 
    Gain on sales of loans and leases held-for-sale 709  67  632 299 120 
    Other 738  1,061  947 1,468 2,714 
    Total non-interest income 4,794  4,219  4,862 6,235 9,328 
    Non-interest expense:     
    Compensation and employee benefits 25,821  25,054  26,092 24,619 25,219 
    Occupancy 4,004  3,806  3,802 3,825 3,953 
    Equipment and data processing 4,493  4,193  4,293 4,155 4,703 
    Professional services 1,226  1,338  1,112 1,056 1,651 
    FDIC insurance 1,044  1,630  1,363 858 378 
    Advertising and marketing 1,100  1,010  1,024 1,017 1,075 
    Amortization of identified intangible assets 232  312  312 311 336 
    Other 2,891  2,695  2,949 3,268 3,433 
    Total non-interest expense 40,811  40,038  40,947 39,109 40,748 
    Income (loss) before provision for income taxes 35,239  34,509  25,325 26,067 (23,822)
    Provision (benefit) for income taxes 8,785  7,846  6,646 6,496 (6,546)
    Net income (loss) attributable to Brookline Bancorp, Inc.$26,454 $26,663 $18,679$19,571$(17,276)
    Earnings per common share:     
    Basic$0.34 $0.34 $0.24$0.25$(0.22)
    Diluted$0.34 $0.34 $0.24$0.25$(0.22)
    Weighted average common shares outstanding during the period:    
    Basic 78,143,752  78,533,351  78,948,139 78,849,282 79,481,462 
    Diluted 78,404,063  78,680,873  79,055,901 79,015,274 79,665,774 
    Dividends paid per common share$0.115 $0.115 $0.115$0.115$0.115 
          


    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Asset Quality Analysis (Unaudited)
     
     At and for the Three Months Ended
     March 31, 2021December 31, 2020September 30, 2020June 30, 2020March 31, 2020
     (Dollars in Thousands)
    NONPERFORMING ASSETS:     
    Loans and leases accounted for on a nonaccrual basis:     
    Commercial real estate mortgage$3,611 $3,300 $10,841 $10,139 $10,937 
    Multi-family mortgage -  -  -  -  85 
    Construction 3,853  3,853  -  -  - 
    Total commercial real estate loans 7,464  7,153  10,841  10,139  11,022 
          
    Commercial 3,161  7,702  7,751  12,427  12,991 
    Equipment financing 15,772  16,757  13,372  13,100  10,356 
    Condominium association 106  112  117  190  203 
    Total commercial loans and leases 19,039  24,571  21,240  25,717  23,550 
          
    Residential mortgage 3,722  5,587  4,634  4,157  3,446 
    Home equity 793  1,136  1,235  1,278  1,059 
    Other consumer 2  1  2  9  7 
    Total consumer loans 4,517  6,724  5,871  5,444  4,512 
          
    Total nonaccrual loans and leases 31,020  38,448  37,952  41,300  39,084 
          
    Other real estate owned 5,328  5,415  -  -  - 
    Other repossessed assets 1,055  1,100  1,413  1,454  2,038 
    Total nonperforming assets$37,403 $44,963 $39,365 $42,754 $41,122 
          
    Loans and leases past due greater than 90 days and still accruing$1,179 $11,975 $1,180 $1,974 $1,045 
          
    Troubled debt restructurings on accrual 16,770  11,483  11,309  10,172  16,480 
    Troubled debt restructurings on nonaccrual 6,293  7,476  5,742  5,972  5,819 
    Total troubled debt restructurings$23,063 $18,959 $17,051 $16,144 $22,299 
          
    Nonperforming loans and leases as a percentage of total loans and leases 0.43% 0.53% 0.51% 0.56% 0.57%
    Nonperforming assets as a percentage of total assets 0.44% 0.50% 0.44% 0.47% 0.49%
          
    PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:   
    Allowance for loan and lease losses at beginning of period$114,379 $119,971 $119,553 $113,181 $61,082 
    CECL adjustment to retained earnings -  -  -  -  6,632 
    Charge-offs (2,143) (4,810) (5,511) (1,803) (2,539)
    Recoveries 383  429  548  420  305 
    Net charge-offs (1,760) (4,381) (4,963) (1,383) (2,234)
    Provision for loan and lease losses excluding unfunded commitments * (2,782) (1,211) 5,381  7,755  47,701 
    Allowance for loan and lease losses at end of period$109,837 $114,379 $119,971 $119,553 $113,181 
          
    Allowance for loan and lease losses as a percentage of total loans and leases 1.51% 1.57% 1.62% 1.61% 1.66%
          
    NET CHARGE-OFFS:     
    Commercial real estate loans$- $3,444 $70 $(94)$- 
    Commercial loans and leases 1,809  1,011  4,917  1,498  2,280 
    Consumer loans (49) (74) (24) (21) (46)
    Total net charge-offs$1,760 $4,381 $4,963 $1,383 $2,234 
          
    Net loan and lease charge-offs as a percentage of average loans and leases (annualized) 0.10% 0.24% 0.27% 0.08% 0.13%
          
    *Provision for loan and lease losses does not include provision (credit) of $0.6 million, $(0.9) million, $(0.9) million, $2.4 million and $6.4 million for credit losses on unfunded commitments during the three months ended March 31, 2021, December 31, 2020, September 30, 2020, June 30, 2020 and March 31, 2020, respectively.     
     


    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Average Yields / Costs (Unaudited)
     
     Three Months Ended
     March 31, 2021December 31, 2020March 31, 2020
     Average BalanceInterest (1)Average Yield/ CostAverage BalanceInterest (1)Average Yield/ CostAverage BalanceInterest (1)Average Yield/ Cost
     (Dollars in Thousands)
    Assets:         
    Interest-earning assets:         
    Investments:         
    Debt securities (2)$754,699$3,1181.65%$770,414$3,3341.73%$605,885$3,0242.00%
    Marketable and restricted equity securities (2) 45,673 3012.64% 51,469 4913.81% 58,881 7865.33%
    Short-term investments 191,751 390.08% 223,665 590.10% 84,309 2090.99%
    Total investments 992,123 3,4581.39% 1,045,548 3,8841.49% 749,075 4,0192.15%
    Loans and Leases:         
    Commercial real estate loans (3) 3,785,897 34,2453.62% 3,833,172 35,5263.63% 3,697,011 40,4684.33%
    Commercial loans (3) 1,249,824 12,7464.08% 1,260,883 11,9363.71% 783,309 8,3284.21%
    Equipment financing (3) 1,079,039 18,0436.69% 1,086,855 18,6266.86% 1,052,846 18,9467.20%
    Residential mortgage loans (3) 780,785 7,2323.71% 803,884 7,5303.75% 810,583 7,9343.92%
    Other consumer loans (3) 375,590 2,7953.02% 385,818 3,0203.10% 417,815 3,9553.79%
    Total loans and leases 7,271,135 75,0614.13% 7,370,612 76,6384.16% 6,761,564 79,6314.71%
    Total interest-earning assets 8,263,258 78,5193.80% 8,416,160 80,5223.83% 7,510,639 83,6504.46%
    Non-interest-earning assets 450,900   458,307   455,187  
    Total assets$8,714,158  $8,874,467  $7,965,826  
              
    Liabilities and Stockholders' Equity:         
    Interest-bearing liabilities:         
    Deposits:         
    NOW accounts$477,893 1300.11%$451,014 1260.11%$359,641 1160.13%
    Savings accounts 712,728 2350.13% 701,378 2450.14% 626,945 6430.41%
    Money market accounts 2,084,503 1,4860.29% 1,947,686 1,5460.32% 1,678,649 4,2411.02%
    Certificates of deposit 1,328,112 4,1541.27% 1,452,867 5,7181.57% 1,682,900 9,2512.21%
    Brokered deposit accounts 610,824 7020.47% 746,281 1,1900.63% 358,003 1,9892.23%
    Total interest-bearing deposits 5,214,060 6,7070.52% 5,299,226 8,8250.66% 4,706,138 16,2401.39%
    Borrowings         
    Advances from the FHLBB 488,537 1,3701.12% 619,844 2,1181.34% 772,462 4,0972.10%
    Subordinated debentures and notes 83,764 1,2425.93% 83,725 1,2455.95% 83,609 1,2846.14%
    Other borrowed funds 92,391 390.17% 81,320 540.26% 91,052 1890.84%
    Total borrowings 664,692 2,6511.60% 784,889 3,4171.70% 947,123 5,5702.33%
    Total interest-bearing liabilities 5,878,752 9,3580.65% 6,084,115 12,2420.80% 5,653,261 21,8101.55%
    Non-interest-bearing liabilities:         
    Demand checking accounts 1,643,373   1,587,618   1,134,314  
    Other non-interest-bearing liabilities 245,551   265,440   232,113  
    Total liabilities 7,767,676   7,937,173   7,019,688  
    Stockholders’ equity 946,482   937,294   946,138  
    Total liabilities and equity$8,714,158  $8,874,467  $7,965,826  
    Net interest income (tax-equivalent basis) /Interest-rate spread (4)  69,1613.15%  68,2803.03%  61,8402.91%
    Less adjustment of tax-exempt income  52   55   128 
    Net interest income $69,109  $68,225  $61,712 
    Net interest margin (5)  3.39%  3.23%  3.31%
              
    (1) Tax-exempt income on debt securities, equity securities and revenue bonds included in commercial real estate loans is included on a tax-equivalent basis.
    (2) Average balances include unrealized gains (losses) on investment securities. Dividend payments may not be consistent and average yield on equity securities may vary from month to month.
    (3) Loans on nonaccrual status are included in the average balances.
    (4) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
    (5) Net interest margin represents net interest income (tax-equivalent basis) divided by average interest-earning assets on an actual/actual basis.
              



    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Non-GAAP Financial Information (Unaudited)
       At and for the Three Months Ended March 31,
         2021  2020 
    Reconciliation Table - Non-GAAP Financial Information  (Dollars in Thousands Except Share Data)
         
    Net income attributable to Brookline Bancorp, Inc.  $26,454 $(17,276)
    Less:     
    Security gains (losses) (after-tax)   (5) 964 
    Operating earnings   $26,459 $(18,240)
          
    Operating earnings per common share:     
    Basic   $0.34 $(0.23)
    Diluted    0.34  (0.23)
          
    Weighted average common shares outstanding during the period:    
    Basic    78,143,752  79,481,462 
    Diluted    78,404,063  79,665,774 
          
          
    Return on average assets *   1.21% (0.87)%
    Less:     
    Security gains (losses) (after-tax) *   -% 0.05%
    Operating return on average assets *   1.21% (0.92)%
          
          
    Return on average tangible assets *   1.24% (0.89)%
    Less:     
    Security gains (losses) (after-tax) *   -% 0.05%
    Operating return on average tangible assets *   1.24% (0.94)%
          
          
    Return on average stockholders' equity *   11.18% (7.30)%
    Less:     
    Security gains (losses) (after-tax) *   -% 0.41%
    Operating return on average stockholders' equity *   11.18% (7.71)%
          
          
    Return on average tangible stockholders' equity *   13.51% (8.84)%
    Less:     
    Security gains (losses) (after-tax) *   -% 0.49%
    Operating return on average tangible stockholders' equity *   13.51% (9.33)%
          
    * Ratios at and for the three months ended are annualized.    
          
     At and for the Three Months Ended
     March 31, 2021
    		December 31, 2020
    		September 30, 2020
    		June 30, 2020
    		March 31, 2020
     (Dollars in Thousands)
          
    Net income (loss), as reported$26,454 $26,663 $18,679 $19,571 $(17,276)
          
    Average total assets$8,714,158 $8,874,467 $9,018,672 $8,869,540 $7,965,826 
    Less: Average goodwill and average identified intangible assets, net 163,457  163,758  164,072  164,385  164,701 
    Average tangible assets$8,550,701 $8,710,709 $8,854,600 $8,705,155 $7,801,125 
          
    Return on average tangible assets (annualized) 1.24 % 1.22 % 0.84 % 0.90 % (0.89)%
          
    Average total stockholders’ equity$946,482 $937,294 $934,632 $926,239 $946,138 
    Less: Average goodwill and average identified intangible assets, net 163,457  163,758  164,072  164,385  164,701 
    Average tangible stockholders’ equity$783,025 $773,536 $770,560 $761,854 $781,437 
          
    Return on average tangible stockholders’ equity (annualized) 13.51 % 13.79 % 9.70 % 10.28 % (8.84)%
          
    Brookline Bancorp, Inc. stockholders’ equity$945,399 $941,778 $935,558 $926,413 $912,568 
    Less:     
    Goodwill 160,427  160,427  160,427  160,427  160,427 
    Identified intangible assets, net 2,920  3,152  3,464  3,775  4,087 
    Tangible stockholders' equity$782,052 $778,199 $771,667 $762,211 $748,054 
          
    Total assets$8,559,810 $8,942,424 $9,000,192 $9,069,667 $8,461,591 
    Less:     
    Goodwill 160,427  160,427  160,427  160,427  160,427 
    Identified intangible assets, net 2,920  3,152  3,464  3,775  4,087 
    Tangible assets$8,396,463 $8,778,845 $8,836,301 $8,905,465 $8,297,077 
          
    Tangible stockholders’ equity to tangible assets 9.31 % 8.86 % 8.73 % 8.56 % 9.02 %
          
    Tangible stockholders' equity$782,052 $778,199 $771,667 $762,211 $748,054 
          
    Number of common shares issued 85,177,172  85,177,172  85,177,172  85,177,172  85,177,172 
    Less:     
    Treasury shares 6,534,602  6,525,783  5,629,854  5,859,708  5,862,811 
    Unallocated ESOP shares 44,502  51,114  58,227  65,334  72,441 
    Unvested restricted shares 449,981  458,800  487,318  398,188  395,085 
    Number of common shares outstanding 78,148,087  78,141,475  79,001,773  78,853,942  78,846,835 
          
    Tangible book value per common share$ 10.01 $ 9.96 $ 9.77 $ 9.67 $ 9.49 
          
    Allowance for loan and lease losses$109,837 $114,379 $119,971 $119,553 $113,181 
          
    Total loans and leases$7,267,552 $7,269,553 $7,396,358 $7,407,697 $6,822,527 
    Less:     
    Total PPP loans 604,790  489,216  568,383  565,768  - 
    Total loans and leases excluding PPP loans$6,662,762 $6,780,337 $6,827,975 $6,841,929 $6,822,527 
          
    Allowance for loan and lease losses as a percentage of total loans and leases less PPP loans 1.65 % 1.69 % 1.76 % 1.75 % 1.66 %
          

     

     


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