• Brookline Bancorp Announces Fourth Quarter Results

    Source: Nasdaq GlobeNewswire / 26 Jan 2022 15:05:01   America/Chicago

    BOSTON, Jan. 26, 2022 (GLOBE NEWSWIRE) -- Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced net income of $28.5 million, or $0.37 per basic and diluted share, for the fourth quarter of 2021, compared to $28.8 million, or $0.37 per basic and diluted share, for the third quarter of 2021, and $26.7 million, or $0.34 per basic and diluted share, for the fourth quarter of 2020.

    For the year ended December 31, 2021, the Company reported record net income of $115.4 million, or $1.48 per basic and diluted share. This compared to $47.6 million, or $0.60 per basic and diluted share, for the year ended December 31, 2020.

    Paul Perrault, Chairman and Chief Executive Officer commented on the Company’s performance, “I am pleased with our strong financial performance and earnings growth in 2021. We finished the year with exceptional loan growth and we are well positioned as we look forward to the coming year.  In the fourth quarter we continued to build on our legacy of providing our customers with an array of robust financial offerings by launching Clarendon Private, an investment and wealth management company. This past year was challenging in many respects, and I would like to recognize our employees for their hard work and dedication throughout the year providing exceptional service to our customers. As we continue to navigate these challenging times, we remain cautiously optimistic for the future.”

    BALANCE SHEET

    Total assets at December 31, 2021 increased $290.0 million to $8.6 billion from $8.3 billion at September 30, 2021, and decreased $339.8 million from $8.9 billion at December 31, 2020. At December 31, 2021, total loans and leases were $7.2 billion, representing an increase of $222.8 million from September 30, 2021, and a decrease of $115.1 million from December 31, 2020.

    The Company funded a total of 4,700 of Small Business Administration's Paycheck Protection Program ("PPP") loans in the aggregate amount of $872.1 million. As of December 31, 2021, $67.7 million in PPP loans remain outstanding, net of deferred fees and costs of $1.7 million. Excluding PPP loan activity, the core loan portfolio grew $315.6 million in the fourth quarter compared to growth of $99.2 million in the third quarter.

    Total investment securities at December 31, 2021 decreased $11.2 million to $720.9 million from $732.0 million at September 30, 2021, and decreased $25.5 million from $746.3 million at December 31, 2020. Total cash and cash equivalents at December 31, 2021 increased $88.6 million to $327.7 million from $239.1 million at September 30, 2021, and decreased $107.2 million from $434.9 million at December 31, 2020. As of December 31, 2021, total investment securities and total cash and cash equivalents represented 12.2 percent of total assets as compared to 11.7 percent and 13.2 percent as of September 30, 2021 and December 31, 2020, respectively.

    Total deposits at December 31, 2021 increased $176.9 million to $7.05 billion from $6.87 billion at September 30, 2021 and increased $139.2 million from $6.91 billion at December 31, 2020.

    Total borrowed funds at December 31, 2021 increased $89.8 million to $357.3 million from $267.5 million at September 30, 2021 and decreased $462.9 million from $820.2 million at December 31, 2020.

    The ratio of stockholders’ equity to total assets was 11.57 percent at December 31, 2021, as compared to 11.77 percent at September 30, 2021, and 10.53 percent at December 31, 2020. The ratio of tangible stockholders’ equity to tangible assets (non-GAAP) was 9.87 percent at December 31, 2021, as compared to 10.01 percent at September 30, 2021, and 8.86 percent at December 31, 2020. Tangible book value per common share (non-GAAP) increased $0.22 from $10.51 at September 30, 2021 to $10.73 at December 31, 2021, compared to $9.96 at December 31, 2020.

    NET INTEREST INCOME

    Net interest income increased $0.8 million to $71.5 million during the fourth quarter of 2021 from $70.7 million for the quarter ended September 30, 2021. The net interest margin decreased 1 basis point to 3.52 percent for the three months ended December 31, 2021 from 3.53 percent for the three months ended September 30, 2021.

    NON-INTEREST INCOME

    Total non-interest income for the quarter ended December 31, 2021 increased $5.1 million to $10.7 million from $5.6 million for the quarter ended September 30, 2021. The increase was primarily driven by increases of $3.8 million in loan level derivative income, net, and $1.4 million in gain on sales of loans and leases.

    PROVISION FOR CREDIT LOSSES

    The Company recorded a provision for credit losses of $0.8 million for the quarter ended December 31, 2021, compared to a negative provision of $3.1 million for the quarter ended September 30, 2021. Total net charge-offs for the fourth quarter of 2021 were $2.1 million compared to $1.3 million in the third quarter of 2021. The increase was primarily driven by an increase in net charge-offs on equipment financing loans of $0.9 million, partially offset by a decrease in net charge-offs on commercial loans of $0.1 million. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis increased to 12 basis points for the fourth quarter of 2021 from 7 basis points for the third quarter of 2021.

    The allowance for loan and lease losses represented 1.38 percent of total loans and leases at December 31, 2021, compared to 1.48 percent at September 30, 2021, and 1.57 percent at December 31, 2020. Excluding PPP loans, the allowance for loan and lease losses represents 1.40 percent coverage at December 31, 2021 compared to 1.51 percent at September 30, 2021, and 1.69 percent at December 31, 2020.

    ASSET QUALITY

    The ratio of total nonperforming loans and leases to total loans and leases was 0.45 percent at December 31, 2021 as compared to 0.52 percent at September 30, 2021. Nonperforming loans and leases decreased $3.4 million to $32.5 million at December 31, 2021 from $35.9 million at September 30, 2021. The ratio of nonperforming assets to total assets was 0.39 percent at December 31, 2021 as compared to 0.44 percent at September 30, 2021. Nonperforming assets decreased $3.3 million to $33.2 million at December 31, 2021 from $36.5 million at September 30, 2021.

    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, 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 December 31, 2021, approximately 96 percent of loans granted an initial loan payment deferral have returned to payment status and 98 credits totaling $38.1 million or 0.5 percent of total loans outstanding have been modified.

    NON-INTEREST EXPENSE

    Non-interest expense for the quarter ended December 31, 2021 increased $2.0 million to $42.9 million from $40.9 million for the quarter ended September 30, 2021. The increase was primarily driven by increases of $1.4 million in compensation and employee benefits and $0.7 million in other non-interest expense, partially offset by a decrease of $0.2 million in advertising and marketing expense.

    PROVISION FOR INCOME TAXES

    The effective tax rate was 25.9 percent and 25.3 percent for the three and twelve months ended December 31, 2021, respectively.

    RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

    The annualized return on average assets decreased to 1.35 percent during the fourth quarter of 2021 compared to 1.38 percent for the third quarter of 2021; and was 1.36 percent for the year ended December 31, 2021, compared to 0.55 percent for the year ended December 31, 2020.

    The annualized return on average tangible stockholders' equity decreased to 13.84 percent during the fourth quarter of 2021 compared to 14.15 percent for the third quarter of 2021; and was 14.35 percent for the year ended December 31, 2021 compared to 6.17 percent for the year ended December 31, 2020.

    DIVIDEND DECLARED

    The Company’s Board approved a dividend of $0.125 per share for the quarter ended December 31, 2021. The dividend will be paid on February 25, 2022 to stockholders of record on February 11, 2022.

    CONFERENCE CALL

    The Company will conduct a conference call/webcast at 1:30 PM Eastern Time on Thursday, January 27, 2022 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/brkl220127.html. To listen to the call without access to the slides, please dial 844-200-6205 (United States) or 929-526-1599 (internationally) and ask for the Brookline Bancorp, Inc. call (Access Code 817809). A recording of the call will be available for one week following the call on the Company’s website under “Investor Relations” or by dialing 866-813-9403 (United States) or 1-929-458-6194 (internationally) and entering the passcode: 342504.

    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. 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 regard the potential effects of the COVID-19 pandemic on the Company’s business, credit quality, financial condition, liquidity and results of operations. Forward-looking statements involve risks and uncertainties. The Company’s actual results could differ materially from those projected in the forward-looking statements as a result of, among other factors, ongoing disruptions due to the COVID-19 pandemic, 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; turbulence in capital and debt markets; and 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.

    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 as a percentage of total loans and leases less PPP loans, 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.
    Co-President and Chief Financial Officer
    (617) 425-5331
    ccarlson@brkl.com


    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Selected Financial Highlights (Unaudited)
     
     At and for the Three Months EndedAt and for the Twelve
    Months Ended
     December 31,
    2021
     September 30,
    2021
    June 30,
    2021
    March 31,
    2021
    December 31,
    2020
    December 31,
    2021
    December 31,
    2020
     (Dollars In Thousands Except per Share Data)
    Earnings Data:        
    Net interest income$71,461  $70,697 $71,106 $69,109 $68,225 $282,373 $260,163 
    Provision (credit) for credit losses 751   (3,110) (3,331) (2,147) (2,103) (7,837) 61,886 
    Non-interest income 10,699   5,586  5,910  4,794  4,219  26,989  24,644 
    Non-interest expense 42,909   40,922  37,966  40,811  40,038  162,608  160,844 
    Income before provision for income taxes 38,500   38,471  42,381  35,239  34,509  154,591  62,077 
    Net income 28,545   28,839  31,602  26,454  26,663  115,440  47,635 
             
    Performance Ratios:        
    Net interest margin (1) 3.52%  3.53% 3.52% 3.39% 3.23% 3.49% 3.17%
    Interest-rate spread (1) 3.42%  3.39% 3.34% 3.15% 3.03% 3.32% 2.88%
    Return on average assets (annualized) 1.35%  1.38% 1.48% 1.21% 1.20% 1.36% 0.55%
    Return on average tangible assets (annualized) (non-GAAP) 1.38%  1.41% 1.51% 1.24% 1.22% 1.38% 0.56%
    Return on average stockholders' equity (annualized) 11.56%  11.79% 13.21% 11.18% 11.38% 11.93% 5.09%
    Return on average tangible stockholders' equity (annualized) (non-GAAP) 13.84%  14.15% 15.92% 13.51% 13.79% 14.35% 6.17%
    Efficiency ratio (2) 52.23%  53.64% 49.30% 55.22% 55.27% 52.56% 56.47%
             
    Per Common Share Data:        
    Net income — Basic$0.37  $0.37 $0.40 $0.34 $0.34 $1.48 $0.60 
    Net income — Diluted 0.37   0.37  0.40  0.34  0.34  1.48  0.60 
    Cash dividends declared 0.125   0.125  0.120  0.120  0.115  0.490  0.460 
    Book value per share (end of period) 12.82   12.61  12.44  12.10  12.05  12.82  12.05 
    Tangible book value per common share (end of period) (non-GAAP) 10.73   10.51  10.35  10.01  9.96  10.73  9.96 
    Stock price (end of period) 16.19   15.26  14.95  15.00  12.04  16.19  12.04 
             
    Balance Sheet:        
    Total assets$8,602,622  $8,312,649 $8,461,964 $8,559,810 $8,942,424 $8,602,622 $8,942,424 
    Total loans and leases 7,154,457   6,931,694  7,020,275  7,267,552  7,269,553  7,154,457  7,269,553 
    Total deposits 7,049,906   6,873,010  6,894,701  6,866,786  6,910,696  7,049,906  6,910,696 
    Total stockholders’ equity 995,342   978,452  972,252  945,399  941,778  995,342  941,778 
             
    Asset Quality:        
    Nonperforming assets$33,177  $36,461 $34,588 $37,403 $44,963 $33,177 $44,963 
    Nonperforming assets as a percentage of total assets 0.39%  0.44% 0.41% 0.44% 0.50% 0.39% 0.50%
    Allowance for loan and lease losses$99,084  $102,515 $106,474 $109,837 $114,379 $99,084 $114,379 
    Allowance for loan and lease losses as a percentage of total loans and leases 1.38%  1.48% 1.52% 1.51% 1.57% 1.38% 1.57%
    Net loan and lease charge-offs$2,124  $1,255 $595 $1,760 $4,381 $5,734 $12,961 
    Net loan and lease charge-offs as a percentage of average loans and leases (annualized) 0.12%  0.07% 0.03% 0.10% 0.24% 0.08% 0.18%
             
    Capital Ratios:        
    Stockholders’ equity to total assets 11.57%  11.77% 11.49% 11.04% 10.53% 11.57% 10.53%
    Tangible stockholders’ equity to tangible assets (non-GAAP) 9.87%  10.01% 9.75% 9.31% 8.86% 9.87% 8.86%
             
    (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)
     
     December 31,
    2021
    September 30,
    2021
    June 30,
    2021
    March 31,
    2021
    December 31,
    2020
    ASSETS(In Thousands Except Share Data) 
    Cash and due from banks$66,265$28,865$36,079$41,284$36,069
    Short-term investments261,472210,279284,37089,643398,848
    Total cash and cash equivalents327,737239,144320,449130,927434,917
    Investment securities available-for-sale720,866732,020694,151729,901745,822
    Equity securities held-for-trading---518526
    Total investment securities720,866732,020694,151730,419746,348
    Loans and leases:     
    Commercial real estate loans4,103,0403,909,0113,815,5813,790,3413,823,826
    Commercial loans and leases1,887,1361,869,6862,038,8512,324,2022,274,899
    Consumer loans1,164,2811,152,9971,165,8431,153,0091,170,828
    Total loans and leases7,154,4576,931,6947,020,2757,267,5527,269,553
    Allowance for loan and lease losses(99,084)(102,515)(106,474)(109,837)(114,379)
    Net loans and leases7,055,3736,829,1796,913,8017,157,7157,155,174
    Restricted equity securities28,98128,09831,62740,40049,786
    Premises and equipment, net of accumulated depreciation70,35970,81171,24072,52471,568
    Right-of-use asset operating leases20,50821,87922,68223,18024,143
    Deferred tax asset38,98739,64341,32442,85740,129
    Goodwill160,427160,427160,427160,427160,427
    Identified intangible assets, net of accumulated amortization2,2762,4842,6922,9203,152
    Other real estate owned and repossessed assets7186013726,3836,515
    Other assets176,390188,363203,199192,058250,265
    Total assets$8,602,622$8,312,649$8,461,964$8,559,810$8,942,424
    LIABILITIES AND STOCKHOLDERS' EQUITY     
    Deposits:     
    Demand checking accounts$1,888,462$1,816,116$1,926,713$1,724,170$1,592,205
    NOW accounts604,097513,032495,598481,988513,948
    Savings accounts915,804823,095782,482724,504701,659
    Money market accounts2,358,3062,393,3622,250,6512,192,4682,018,977
    Certificate of deposit accounts1,117,6951,141,8611,178,1311,273,1051,389,998
    Brokered deposit accounts165,542185,544261,126470,551693,909
    Total deposits7,049,9066,873,0106,894,7016,866,7866,910,696
    Borrowed funds:     
    Advances from the FHLBB147,907113,977204,154378,646648,849
    Subordinated debentures and notes83,89783,85983,82183,78383,746
    Other borrowed funds125,51769,70375,03983,57487,652
    Total borrowed funds357,321267,539363,014546,003820,247
    Operating lease liabilities20,50821,87922,68223,18024,143
    Mortgagors’ escrow accounts6,2966,4556,2316,4835,901
    Reserve for unfunded credits14,79412,73613,14213,70513,071
    Accrued expenses and other liabilities158,455152,578189,942158,254226,588
    Total liabilities7,607,2807,334,1977,489,7127,614,4118,000,646
    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, respectively852852852852852
    Additional paid-in capital736,826735,990738,557737,882737,178
    Retained earnings, partially restricted342,639323,862304,466282,301264,892
    Accumulated other comprehensive income(110)2,6156,0892,08216,490
    Treasury stock, at cost;     
    7,037,464 shares, 7,034,754 shares, 6,536,478 shares, 6,534,602 shares, and 6,525,783 shares, respectively(84,718)(84,684)(77,493)(77,463)(77,343)
    Unallocated common stock held by the Employee Stock Ownership Plan;     
    24,660 shares, 31,278 shares, 37,890 shares, 44,502 shares, and 51,114 shares, respectively(147)(183)(219)(255)(291)
    Total stockholders' equity995,342978,452972,252945,399941,778
    Total liabilities and stockholders' equity$8,602,622$8,312,649$8,461,964$8,559,810$8,942,424
          


    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Consolidated Statements of Income (Unaudited)
     
     Three Months Ended
     December 31,
    2021
    September 30,
    2021
     June 30,
    2021
    March 31,
    2021
    December 31,
    2020
     (In Thousands Except Share Data)
    Interest and dividend income:      
    Loans and leases$73,560 $74,332  $75,026 $75,009 $76,583 
    Debt securities 2,972  2,967   3,121  3,118  3,335 
    Marketable and restricted equity securities 325  313   233  301  490 
    Short-term investments 88  83   42  39  59 
    Total interest and dividend income 76,945  77,695   78,422  78,467  80,467 
    Interest expense:      
    Deposits 4,055  4,571   5,380  6,707  8,825 
    Borrowed funds 1,429  2,427   1,936  2,651  3,417 
    Total interest expense 5,484  6,998   7,316  9,358  12,242 
    Net interest income 71,461  70,697   71,106  69,109  68,225 
    Provision (credit) for credit losses 751  (3,110)  (3,331) (2,147) (2,103)
    Net interest income after provision for credit losses 70,710  73,807   74,437  71,256  70,328 
    Non-interest income:      
    Deposit fees 2,653  2,629   3,015  2,281  2,358 
    Loan fees 448  487   607  599  588 
    Loan level derivative income, net 3,981  218   7  474  145 
    (Loss) gain on investment securities, net (32) -   1  (7) - 
    Gain on sales of loans and leases held-for-sale 1,933  557   538  709  67 
    Other 1,716  1,695   1,742  738  1,061 
    Total non-interest income 10,699  5,586   5,910  4,794  4,219 
    Non-interest expense:      
    Compensation and employee benefits 28,598  27,206   25,161  25,821  25,054 
    Occupancy 3,558  3,567   3,832  4,004  3,806 
    Equipment and data processing 4,576  4,556   4,697  4,493  4,193 
    Professional services 1,151  1,072   1,245  1,226  1,338 
    FDIC insurance 617  662   657  1,044  1,630 
    Advertising and marketing 880  1,077   1,110  1,100  1,010 
    Amortization of identified intangible assets 208  208   228  232  312 
    Other 3,321  2,574   1,036  2,891  2,695 
    Total non-interest expense 42,909  40,922   37,966  40,811  40,038 
    Income before provision for income taxes 38,500  38,471   42,381  35,239  34,509 
    Provision for income taxes 9,955  9,632   10,779  8,785  7,846 
    Net income$28,545 $28,839  $31,602 $26,454 $26,663 
    Earnings per common share:      
    Basic$0.37 $0.37  $0.40 $0.34 $0.34 
    Diluted$0.37 $0.37  $0.40 $0.34 $0.34 
    Weighted average common shares outstanding during the period:     
    Basic 77,610,608  78,000,261   78,150,364  78,143,752  78,533,351 
    Diluted 77,864,097  78,240,633   78,470,451  78,404,063  78,680,873 
    Dividends paid per common share$0.125 $0.120  $0.120 $0.115 $0.115 
           


    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Consolidated Statements of Income (Unaudited)
      
     Twelve Months Ended December 31,
      2021  2020
     (In Thousands Except Share Data)
    Interest and dividend income:  
    Loans and leases$297,927 $309,798
    Debt securities 12,178  13,758
    Marketable and restricted equity securities 1,172  2,848
    Short-term investments 252  413
    Total interest and dividend income 311,529  326,817
    Interest expense:  
    Deposits 20,713  48,426
    Borrowed funds 8,443  18,228
    Total interest expense 29,156  66,654
    Net interest income 282,373  260,163
    (Credit) provision for credit losses (7,837) 61,886
    Net interest income after provision for credit losses 290,210  198,277
    Non-interest income:  
    Deposit fees 10,578  9,050
    Loan fees 2,095  2,048
    Loan level derivative income, net 4,680  4,268
    (Loss) gain on investment securities, net (38) 1,970
    Gain on sales of loans and leases held-for-sale 3,737  1,118
    Other 5,937  6,190
    Total non-interest income 26,989  24,644
    Non-interest expense:  
    Compensation and employee benefits 106,786  100,985
    Occupancy 14,961  15,386
    Equipment and data processing 18,322  17,345
    Professional services 4,694  5,157
    FDIC insurance 2,980  4,229
    Advertising and marketing 4,167  4,126
    Amortization of identified intangible assets 876  1,271
    Other 9,822  12,345
    Total non-interest expense 162,608  160,844
    Income before provision for income taxes 154,591  62,077
    Provision for income taxes 39,151  14,442
    Net income$115,440 $47,635
    Earnings per common share:  
    Basic$1.48 $0.60
    Diluted$1.48 $0.60
    Weighted average common shares outstanding during the period: 
    Basic 77,974,851  78,951,892
    Diluted 78,243,416  79,103,289
    Dividends paid per common share$0.480 $0.460
       


    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Asset Quality Analysis (Unaudited)
     
     At and for the Three Months Ended
     December 31,
    2021
    September 30,
    2021
    June 30,
    2021
    March 31,
    2021
    December 31,
    2020
     (Dollars in Thousands)
    NONPERFORMING ASSETS:     
    Loans and leases accounted for on a nonaccrual basis:     
    Commercial real estate mortgage$10,848 $10,963 $11,657 $3,611 $3,300 
    Multi-family mortgage -  -  -  -  - 
    Construction -  -  -  3,853  3,853 
    Total commercial real estate loans 10,848  10,963  11,657  7,464  7,153 
          
    Commercial 2,318  2,539  3,207  3,161  7,702 
    Equipment financing 15,014  17,655  14,872  15,772  16,757 
    Condominium association 84  91  97  106  112 
    Total commercial loans and leases 17,416  20,285  18,176  19,039  24,571 
          
    Residential mortgage 3,909  4,150  3,638  3,722  5,587 
    Home equity 285  461  744  793  1,136 
    Other consumer 1  1  1  2  1 
    Total consumer loans 4,195  4,612  4,383  4,517  6,724 
          
    Total nonaccrual loans and leases 32,459  35,860  34,216  31,020  38,448 
          
    Other real estate owned -  -  -  5,328  5,415 
    Other repossessed assets 718  601  372  1,055  1,100 
    Total nonperforming assets$33,177 $36,461 $34,588 $37,403 $44,963 
          
    Loans and leases past due greater than 90 days and still accruing$1 $838 $3,154 $1,179 $11,975 
          
    Troubled debt restructurings on accrual 12,580  13,526  14,387  16,770  11,483 
    Troubled debt restructurings on nonaccrual 6,709  6,655  6,410  6,293  7,476 
    Total troubled debt restructurings$19,289 $20,181 $20,797 $23,063 $18,959 
          
    Nonperforming loans and leases as a percentage of total loans and leases 0.45% 0.52% 0.49% 0.43% 0.53%
    Nonperforming assets as a percentage of total assets 0.39% 0.44% 0.41% 0.44% 0.50%
          
    PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:   
    Allowance for loan and lease losses at beginning of period$102,515 $106,474 $109,837 $114,379 $119,971 
    Charge-offs (2,562) (1,600) (1,221) (2,143) (4,810)
    Recoveries 438  345  626  383  429 
    Net charge-offs (2,124) (1,255) (595) (1,760) (4,381)
    Provision (credit) for loan and lease losses excluding unfunded commitments * (1,307) (2,704) (2,768) (2,782) (1,211)
    Allowance for loan and lease losses at end of period$99,084 $102,515 $106,474 $109,837 $114,379 
          
    Allowance for loan and lease losses as a percentage of total loans and leases 1.38% 1.48% 1.52% 1.51% 1.57%
          
    NET CHARGE-OFFS:     
    Commercial real estate loans$- $(1)$17 $- $3,444 
    Commercial loans and leases 2,143  1,276  695  1,809  1,011 
    Consumer loans (19) (20) (117) (49) (74)
    Total net charge-offs$2,124 $1,255 $595 $1,760 $4,381 
          
    Net loan and lease charge-offs as a percentage of average loans and leases (annualized) 0.12% 0.07% 0.03% 0.10% 0.24%
          
    *Provision for loan and lease losses does not include provision (credit) of $2.1 million, $(0.4) million, $(0.6) million, $0.6 million, and $(0.9) million for credit losses on unfunded commitments during the three months ended December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021, and December 31, 2020 respectively.     
          


    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Average Yields / Costs (Unaudited)
     
     Three Months Ended
     December 31, 2021September 30, 2021December 31, 2020
     Average
    Balance
    Interest (1)Average
    Yield/ Cost
    Average
    Balance
    Interest (1)Average
    Yield/ Cost
    Average
    Balance
    Interest (1)Average
    Yield/ Cost
     (Dollars in Thousands)
    Assets:         
    Interest-earning assets:         
    Investments:         
    Debt securities (2)$727,734$2,9721.63%$713,593$2,9671.66%$770,414$3,3341.73%
    Marketable and restricted equity securities (2) 27,019 3254.81% 28,877 3134.33% 51,469 4913.81%
    Short-term investments 224,573 880.16% 220,110 830.15% 223,665 590.10%
    Total investments 979,326 3,3851.38% 962,580 3,3631.40% 1,045,548 3,8841.49%
    Loans and Leases:         
    Commercial real estate loans (3) 3,996,647 35,7623.50% 3,851,677 35,1243.57% 3,833,172 35,5263.63%
    Commercial loans (3) 820,932 10,1464.84% 901,862 11,7155.09% 1,260,883 11,9363.71%
    Equipment financing (3) 1,092,457 18,1756.65% 1,079,059 17,7256.57% 1,086,855 18,6266.86%
    Residential mortgage loans (3) 796,326 6,7853.41% 788,874 6,9893.54% 803,884 7,5303.75%
    Other consumer loans (3) 368,087 2,7512.96% 364,914 2,8303.07% 385,818 3,0203.10%
    Total loans and leases 7,074,449 73,6194.16% 6,986,386 74,3834.26% 7,370,612 76,6384.16%
      Total interest-earning assets 8,053,775 77,0043.82% 7,948,966 77,7463.91% 8,416,160 80,5223.83%
    Non-interest-earning assets 408,456   411,669   458,307  
    Total assets$8,462,231  $8,360,635  $8,874,467  
              
    Liabilities and Stockholders' Equity:         
    Interest-bearing liabilities:         
    Deposits:         
    NOW accounts$528,335 1010.08%$502,093 1160.09%$451,014 1260.11%
    Savings accounts 897,821 2190.10% 785,657 2480.12% 701,378 2450.14%
    Money market accounts 2,430,496 1,6150.26% 2,387,080 1,6160.27% 1,947,686 1,5460.32%
    Certificates of deposit 1,129,645 2,0720.73% 1,160,113 2,4300.83% 1,452,867 5,7181.57%
    Brokered deposit accounts 116,611 480.16% 216,112 1610.30% 746,281 1,1900.63%
      Total interest-bearing deposits 5,102,908 4,0550.32% 5,051,055 4,5710.36% 5,299,226 8,8250.66%
    Borrowings:         
    Advances from the FHLBB 76,786 1170.59% 119,043 1,1523.79% 619,844 2,1181.34%
    Subordinated debentures and notes 83,878 1,2415.92% 83,840 1,2425.92% 83,725 1,2455.95%
    Other borrowed funds 112,137 710.25% 76,380 330.17% 81,320 540.26%
    Total borrowings 272,801 1,4292.05% 279,263 2,4273.40% 784,889 3,4171.70%
      Total interest-bearing liabilities 5,375,709 5,4840.40% 5,330,318 6,9980.52% 6,084,115 12,2420.80%
    Non-interest-bearing liabilities:         
    Demand checking accounts 1,892,763   1,827,501   1,587,618  
    Other non-interest-bearing liabilities 206,237   224,445   265,440  
    Total liabilities 7,474,709   7,382,264   7,937,173  
    Stockholders’ equity 987,522   978,371   937,294  
    Total liabilities and equity$8,462,231  $8,360,635  $8,874,467  
    Net interest income (tax-equivalent basis) /Interest-rate spread (4)  71,5203.42%  70,7483.39%  68,2803.03%
    Less adjustment of tax-exempt income  59   51   55 
    Net interest income $71,461  $70,697  $68,225 
    Net interest margin (5)  3.52%  3.53%  3.23%
              
    (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.
              


    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Average Yields / Costs (Unaudited)
     
     Twelve Months Ended
     December 31, 2021December 31, 2020
     Average
    Balance
    Interest (1)Average
    Yield/ Cost
    Average
    Balance
    Interest (1)Average
    Yield/ Cost
     (Dollars in Thousands)
    Assets:      
    Interest-earning assets:      
    Investments:      
    Debt securities (2)$729,147$12,1781.67%$750,689$13,8231.84%
    Marketable and restricted equity securities (2) 34,074 1,1723.44% 61,873 2,8624.63%
    Short-term investments 217,784 2520.12% 186,617 4130.22%
    Total investments 981,005 13,6021.39% 999,179 17,0981.71%
    Loans and Leases:      
    Commercial real estate loans (3) 3,854,357 139,4513.57% 3,781,201 148,4383.86%
    Commercial loans (3) 1,020,627 47,6474.61% 1,140,699 41,3913.57%
    Equipment financing (3) 1,081,287 71,9066.65% 1,074,561 75,5637.03%
    Residential mortgage loans (3) 788,614 27,9333.54% 810,855 31,3923.87%
    Other consumer loans (3) 369,326 11,2093.03% 402,672 13,2553.28%
    Total loans and leases 7,114,211 298,1464.19% 7,209,988 310,0394.30%
      Total interest-earning assets 8,095,216 311,7483.85% 8,209,167 327,1373.99%
    Non-interest-earning assets 422,984   474,402  
    Total assets$8,518,200  $8,683,569  
           
    Liabilities and Stockholders' Equity:      
    Interest-bearing liabilities:      
    Deposits:      
    NOW accounts$502,189 4930.10%$408,374 4840.12%
    Savings accounts 793,141 9500.12% 670,217 1,5030.22%
    Money market accounts 2,288,740 6,2140.27% 1,817,085 9,5190.52%
    Certificates of deposit 1,210,451 11,7580.97% 1,577,104 30,3551.92%
    Brokered deposit accounts 338,734 1,2980.38% 512,803 6,5651.28%
      Total interest-bearing deposits 5,133,255 20,7130.40% 4,985,583 48,4260.97%
    Borrowings:      
    Advances from the FHLBB 232,175 3,3021.40% 859,389 12,8421.47%
    Subordinated debentures and notes 83,821 4,9675.93% 83,667 5,0386.02%
    Other borrowed funds 88,818 1740.20% 90,587 3480.38%
    Total borrowings 404,814 8,4432.06% 1,033,643 18,2281.73%
    Total interest-bearing liabilities 5,538,069 29,1560.53% 6,019,226 66,6541.11%
    Non-interest-bearing liabilities:      
    Demand checking accounts 1,787,959   1,451,556  
    Other non-interest-bearing liabilities 224,634   276,712  
    Total liabilities 7,550,662   7,747,494  
    Stockholders’ equity 967,538   936,075  
    Total liabilities and equity$8,518,200  $8,683,569  
    Net interest income (tax-equivalent basis) /Interest-rate spread (4)  282,5923.32%  260,4832.88%
    Less adjustment of tax-exempt income  219   320 
    Net interest income $282,373  $260,163 
    Net interest margin (5)  3.49%  3.17%
           
    (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.
           


    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Non-GAAP Financial Information (Unaudited)
     
       At and for the Three Months
    Ended December 31,
    At and for the Twelve Months
    Ended December 31,
         2021  2020  2021   2020 
    Reconciliation Table - Non-GAAP Financial Information (Dollars in Thousands Except Share Data)
            
    Net income  $28,545 $26,663 $115,440  $47,635 
    Less:        
    Security (losses) gains (after-tax) (24) -  (28)  1,511 
    Operating earnings   $28,569 $26,663 $115,468  $46,124 
             
    Operating earnings per common share:       
    Basic   $0.37 $0.34 $1.48  $0.58 
    Diluted    0.37  0.34  1.48   0.58 
             
    Weighted average common shares outstanding during the period:      
    Basic    77,610,608  78,533,351  77,974,851   78,951,892 
    Diluted    77,864,097  78,680,873  78,243,416   79,103,289 
             
             
    Return on average assets *   1.35% 1.20% 1.36%  0.55%
    Less:        
    Security gains (after-tax) *   -% -% -%  0.02%
    Operating return on average assets *   1.35% 1.20% 1.36%  0.53%
             
             
    Return on average tangible assets *   1.38% 1.22% 1.38%  0.56%
    Less:        
    Security gains (after-tax) *   -% -% -%  0.02%
    Operating return on average tangible assets *   1.38% 1.22% 1.38%  0.54%
             
             
    Return on average stockholders' equity *   11.56% 11.38% 11.93%  5.09%
    Less:        
    Security (losses) gains (after-tax) *   (0.01)% -% -%  0.16%
    Operating return on average stockholders' equity *  11.57% 11.38% 11.93%  4.93%
             
             
    Return on average tangible stockholders' equity *  13.84% 13.79% 14.35%  6.17%
    Less:        
    Security (losses) gains (after-tax) *   (0.01)% -% -%  0.20%
    Operating return on average tangible stockholders' equity *  13.85% 13.79% 14.35%  5.97%
             
             
    * Ratios at and for the three months ended are annualized.      
             
    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Non-GAAP Financial Information (Unaudited)
     
     At and for the Three Months EndedAt and for the Twelve Months Ended
     December 31,
    2021
    September 30,
    2021
    June 30,
    2021
    March 31,
    2021
    December 31,
    2020
    December 31,
    2021
     December 31,
    2020
     (Dollars in Thousands)
             
    Net income, as reported$28,545 $28,839 $31,602 $26,454 $26,663 $115,440  $47,635 
             
    Average total assets$8,462,231 $8,360,635 $8,540,228 $8,714,158 $8,874,467 $8,518,200  $8,683,569 
    Less: Average goodwill and average identified intangible assets, net 162,804  163,011  163,224  163,457  163,758  163,122   164,227 
    Average tangible assets$8,299,427 $8,197,624 $8,377,004 $8,550,701 $8,710,709 $8,355,078  $8,519,342 
             
    Return on average tangible assets (annualized) 1.38 % 1.41 % 1.51 % 1.24 % 1.22 % 1.38 %  0.56 %
             
    Average total stockholders’ equity$987,522 $978,371 $957,207 $946,482 $937,294 $967,538  $936,075 
    Less: Average goodwill and average identified intangible assets, net 162,804  163,011  163,224  163,457  163,758  163,122   164,227 
    Average tangible stockholders’ equity$824,718 $815,360 $793,983 $783,025 $773,536 $804,416  $771,848 
             
    Return on average tangible stockholders’ equity (annualized) 13.84 % 14.15 % 15.92 % 13.51 % 13.79 % 14.35 %  6.17 %
             
    Total stockholders’ equity$995,342 $978,452 $972,252 $945,399 $941,778 $995,342  $941,778 
    Less:        
    Goodwill 160,427  160,427  160,427  160,427  160,427  160,427   160,427 
    Identified intangible assets, net 2,276  2,484  2,692  2,920  3,152  2,276   3,152 
    Tangible stockholders' equity$832,639 $815,541 $809,133 $782,052 $778,199 $832,639  $778,199 
             
    Total assets$8,602,622 $8,312,649 $8,461,964 $8,559,810 $8,942,424 $8,602,622  $8,942,424 
    Less:        
    Goodwill 160,427  160,427  160,427  160,427  160,427  160,427   160,427 
    Identified intangible assets, net 2,276  2,484  2,692  2,920  3,152  2,276   3,152 
    Tangible assets$8,439,919 $8,149,738 $8,298,845 $8,396,463 $8,778,845 $8,439,919  $8,778,845 
             
    Tangible stockholders’ equity to tangible assets 9.87 % 10.01 % 9.75 % 9.31 % 8.86 % 9.87 %  8.86 %
             
    Tangible stockholders' equity$832,639 $815,541 $809,133 $782,052 $778,199 $832,639  $778,199 
             
    Number of common shares issued 85,177,172  85,177,172  85,177,172  85,177,172  85,177,172  85,177,172   85,177,172 
    Less:        
    Treasury shares 7,037,464  7,034,754  6,536,478  6,534,602  6,525,783  7,037,464   6,525,783 
    Unallocated ESOP shares 24,660  31,278  37,890  44,502  51,114  24,660   51,114 
    Unvested restricted shares 500,098  502,808  448,105  449,981  458,800  500,098   458,800 
    Number of common shares outstanding 77,614,950  77,608,332  78,154,699  78,148,087  78,141,475  77,614,950   78,141,475 
             
    Tangible book value per common share$ 10.73 $ 10.51 $ 10.35 $ 10.01 $ 9.96 $ 10.73  $ 9.96 
             
    Allowance for loan and lease losses$99,084 $102,515 $106,474 $109,837 $114,379 $99,084  $114,379 
             
    Total loans and leases$7,154,457 $6,931,694 $7,020,275 $7,267,552 $7,269,553 $7,154,457  $7,269,553 
    Less:        
    Total PPP loans 67,711  160,586  348,411  604,790  489,216  67,711   489,216 
    Total loans and leases excluding PPP loans$7,086,746 $6,771,108 $6,671,864 $6,662,762 $6,780,337 $7,086,746  $6,780,337 
             
    Allowance for loan and lease losses as a percentage of total loans and leases less PPP loans 1.40 % 1.51 % 1.60 % 1.65 % 1.69 % 1.40 %  1.69 %
             

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