• Brookline Bancorp Announces Second Quarter Results

    Source: Nasdaq GlobeNewswire / 27 Jul 2022 15:05:21   America/Chicago

    BOSTON, July 27, 2022 (GLOBE NEWSWIRE) -- Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced net income of $25.2 million, or $0.33 per basic and diluted share, for the second quarter of 2022, compared to net income of $24.7 million, or $0.32 per basic and diluted share, for the first quarter of 2022, and net income of $31.6 million, or $0.40 per basic and diluted share, for the second quarter of 2021.

    “I am pleased to share that Brookline Bancorp maintained its consistent strong performance throughout the second quarter of 2022,” said Paul Perrault, Chairman and Chief Executive Officer of the Company. “During the quarter, we generated steady loan growth and asset quality remained strong. I am proud of our employees who work together to exemplify the Brookline Bancorp culture of providing excellent customer service and whose efforts contribute to the continued growth of our Company.”

    BALANCE SHEET

    Total assets at June 30, 2022 decreased $119.5 million to $8.51 billion from $8.63 billion at March 31, 2022, and increased $52.3 million from $8.46 billion at June 30, 2021. At June 30, 2022, total loans and leases were $7.3 billion, representing an increase of $68.8 million from March 31, 2022, and an increase of $271.6 million from June 30, 2021. Excluding U.S. Small Business Administration Paycheck Protection Program ("PPP") loan activity, the core loan portfolio grew $81.7 million in the second quarter compared to growth of $122.4 million in the first quarter.

    Total investment securities at June 30, 2022 decreased $12.8 million to $717.8 million from $730.6 million at March 31, 2022, and increased $23.6 million from $694.2 million at June 30, 2021. Total cash and cash equivalents at June 30, 2022 decreased $203.0 million to $90.3 million from $293.3 million at March 31, 2022, and decreased $230.1 million from $320.4 million at June 30, 2021. As of June 30, 2022, total investment securities and total cash and cash equivalents represented 9.5 percent of total assets as compared to 11.9 percent and 12.0 percent as of March 31, 2022 and June 30, 2021, respectively.

    Total deposits at June 30, 2022 decreased $199.9 million to $6.89 billion from $7.09 billion at March 31, 2022, and decreased $0.2 million from $6.89 billion at June 30, 2021.

    Total borrowed funds at June 30, 2022 increased $85.3 million to $478.2 million from $392.9 million at March 31, 2022, and increased $115.2 million from $363.0 million at June 30, 2021.

    The ratio of stockholders’ equity to total assets was 11.38 percent at June 30, 2022, as compared to 11.37 percent at March 31, 2022, and 11.49 percent at June 30, 2021. The ratio of tangible stockholders’ equity to tangible assets (non-GAAP) was 9.65 percent at June 30, 2022, as compared to 9.67 percent at March 31, 2022, and 9.75 percent at June 30, 2021. Tangible book value per share (non-GAAP) decreased $0.05 from $10.56 at March 31, 2022 to $10.51 at June 30, 2022, compared to $10.35 at June 30, 2021.

    NET INTEREST INCOME

    Net interest income increased $2.1 million to $71.9 million for the second quarter of 2022 from $69.8 million for the quarter ended March 31, 2022. The net interest margin increased 7 basis points to 3.56 percent for the three months ended June 30, 2022 from 3.49 percent for the three months ended March 31, 2022.

    NON-INTEREST INCOME

    Total non-interest income for the quarter ended June 30, 2022 increased $1.4 million to $6.9 million from $5.5 million for the quarter ended March 31, 2022. The increase was primarily driven by an increase of $0.9 million in loan level derivative income, net, an increase of $0.4 million in other non-interest income, and an increase of $0.2 million in deposit fees, partially offset by a decrease of $0.1 million in loan fees.

    PROVISION FOR CREDIT LOSSES

    The Company recorded a provision for credit losses of $0.2 million for the quarter ended June 30, 2022, compared to a negative provision for credit losses of $0.2 million for the quarter ended March 31, 2022. Total net charge-offs for the second quarter of 2022 were $1.2 million compared to $1.9 million in the first quarter of 2022. The decrease was primarily driven by a decrease in net charge-offs on equipment financing loans of $1.0 million, partially offset by an increase in net charge-offs on commercial loans of $0.3 million. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis decreased to 7 basis points for the second quarter of 2022 from 11 basis points for the first quarter of 2022.

    The allowance for loan and lease losses represented 1.28 percent of total loans and leases at June 30, 2022, compared to 1.32 percent at March 31, 2022, and 1.52 percent at June 30, 2021.

    ASSET QUALITY

    The ratio of nonperforming loans and leases to total loans and leases was 0.28 percent at June 30, 2022, a decrease from 0.35 percent at March 31, 2022. Total nonaccrual loans and leases decreased $4.7 million to $20.8 million at June 30, 2022 from $25.5 million at March 31, 2022. The ratio of nonperforming assets to total assets was 0.25 percent at June 30, 2022, a decrease from 0.31 percent at March 31, 2022. Total nonperforming assets decreased $5.2 million to $21.3 million at June 30, 2022 from $26.5 million at March 31, 2022.

    NON-INTEREST EXPENSE

    Non-interest expense for the quarter ended June 30, 2022 increased $2.4 million to $44.9 million from $42.5 million for the quarter ended March 31, 2022. The increase was primarily driven by an increase of $1.9 million in compensation and employee benefits expense, an increase of $0.5 million in other non-interest expense, and an increase of $0.5 million in merger and acquisition expense, partially offset by a decrease of $0.5 million in occupancy expense.

    PROVISION FOR INCOME TAXES

    The effective tax rate was 25.2 percent for both the three and six months ended June 30, 2022 compared to 25.2 percent for the three months ended March 31, 2022 and 25.4 percent and 25.2 percent for the three and six months ended June 30, 2021.

    RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

    The annualized return on average assets increased to 1.18 percent during the second quarter 2022 from 1.16 percent for the first quarter of 2022.

    The annualized return on average stockholders' equity increased to 10.32 percent during the second quarter of 2022 from 9.91 percent for the first quarter of 2022. The annualized return on average tangible stockholders’ equity increased to 12.39 percent for the second quarter of 2022 from 11.84 percent for the first quarter of 2022.

    DIVIDEND DECLARED

    The Company’s Board of Directors approved a dividend of $0.130 per share for the quarter ended June 30, 2022. The dividend will be paid on August 26, 2022 to stockholders of record on August 12, 2022.

    PCSB ACQUISITION

    On May 23, 2022, the Company and PCSB Financial Corporation (“PCSB”), the holding company of PCSB Bank, entered into an Agreement and Plan of Merger (the “Merger Agreement”). Pursuant to the Merger Agreement, PCSB will merge with and into the Company, with the Company as the surviving corporation (the “Merger”). Following the Merger, PCSB Bank will operate as a separate bank subsidiary of the Company. Pursuant to the terms of the Merger Agreement, at the effective time of the Merger, each stockholder of PCSB will receive, for each share of PCSB common stock, at the holder’s election, either $22.00 in cash consideration or 1.3284 shares of Company common stock for each share of PCSB common stock, subject to allocation procedures to ensure that 60% of the outstanding shares of PCSB common stock will be converted into Company common stock. The consummation of the Merger is subject to customary closing conditions, including the receipt of regulatory approvals and approval by PCSB’s stockholders. The Merger is currently expected to be completed in the second half of 2022.

    CONFERENCE CALL

    The Company will conduct a conference call/webcast at 1:30 PM Eastern Time on Thursday, July 28, 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://event.choruscall.com/mediaframe/webcast.html?webcastid=KE0Krf7D. To listen to the call without access to the slides, interested parties may dial 844-200-6205 (United States) or 929-526-1599 (internationally) and ask for the Brookline Bancorp, Inc. conference call (Access Code 963142). 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 866-813-9403 (United States) or 1-929-458-6194 (internationally) and entering the passcode: 139832.

    ABOUT BROOKLINE BANCORP, INC.

    Brookline Bancorp, Inc., a bank holding company with $8.5 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 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 included, but are not limited to, general business and economic conditions on a national basis and in the local markets in which the Company operates; the Company and PCSB’s ability to achieve the synergies and value creation contemplated by the proposed acquisition; the Company and PCSB’s ability to successfully integrate operations in the proposed acquisition; the effect of the announcement of the proposed acquisition on the ability of PCSB to maintain relationships with its key partners, customers and employees, and on its operating business generally, changes in consumer behavior due to changing political business and economic conditions (including inflation) or legislative or regulatory initiatives; ongoing disruptions due to the COVID-19 pandemic and the measures taken to contain its spread on our employees, customers, business operations, credit quality, financial position, liquidity and results of operations, the possibility that future credit losses may be higher than currently expected; and ongoing 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 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 Ended
     June 30,
    2022    		March 31,
    2022    		December 31,
    2021    		 September 30,
    2021    		June 30,
    2021
     (Dollars In Thousands Except per Share Data)
    Earnings Data:      
    Net interest income$71,867 $69,848 $71,461  $70,697 $71,106 
    Provision (credit) for credit losses 173  (164) 751   (3,110) (3,331)
    Non-interest income 6,928  5,529  10,699   5,586  5,910 
    Non-interest expense 44,871  42,487  42,909   40,922  37,966 
    Income before provision for income taxes 33,697  33,050  38,500   38,471  42,381 
    Net income 25,195  24,705  28,545   28,839  31,602 
           
    Performance Ratios:      
    Net interest margin (1) 3.56% 3.49% 3.52%  3.53% 3.52%
    Interest-rate spread (1) 3.41% 3.31% 3.42%  3.39% 3.34%
    Return on average assets (annualized) 1.18% 1.16% 1.35%  1.38% 1.48%
    Return on average tangible assets (annualized) (non-GAAP) 1.21% 1.18% 1.38%  1.41% 1.51%
    Return on average stockholders' equity (annualized) 10.32% 9.91% 11.56%  11.79% 13.21%
    Return on average tangible stockholders' equity (annualized) (non-GAAP) 12.39% 11.84% 13.84%  14.15% 15.92%
    Efficiency ratio (2) 56.95% 56.37% 52.23%  53.64% 49.30%
           
    Per Common Share Data:      
    Net income — Basic$0.33 $0.32 $0.37  $0.37 $0.40 
    Net income — Diluted 0.33  0.32  0.37   0.37  0.40 
    Cash dividends declared 0.130  0.130  0.125   0.125  0.120 
    Book value per share (end of period) 12.63  12.65  12.82   12.61  12.44 
    Tangible book value per share (end of period) (non-GAAP) 10.51  10.56  10.73   10.51  10.35 
    Stock price (end of period) 13.31  15.82  16.19   15.26  14.95 
           
    Balance Sheet:      
    Total assets$8,514,230 $8,633,736 $8,602,622  $8,312,649 $8,461,964 
    Total loans and leases 7,291,912  7,223,130  7,154,457   6,931,694  7,020,275 
    Total deposits 6,894,457  7,094,378  7,049,906   6,873,010  6,894,701 
    Total stockholders’ equity 968,496  981,935  995,342   978,452  972,252 
           
    Asset Quality:      
    Nonperforming assets$21,259 $26,506 $33,177  $36,461 $34,588 
    Nonperforming assets as a percentage of total assets 0.25% 0.31% 0.39%  0.44% 0.41%
    Allowance for loan and lease losses$93,188 $95,463 $99,084  $102,515 $106,474 
    Allowance for loan and lease losses as a percentage of total loans and leases 1.28% 1.32% 1.38%  1.48% 1.52%
    Net loan and lease charge-offs$1,242 $1,947 $2,124  $1,255 $595 
    Net loan and lease charge-offs as a percentage of average loans and leases (annualized) 0.07% 0.11% 0.12%  0.07% 0.03%
           
    Capital Ratios:      
    Stockholders’ equity to total assets 11.38% 11.37% 11.57%  11.77% 11.49%
    Tangible stockholders’ equity to tangible assets (non-GAAP) 9.65% 9.67% 9.87%  10.01% 9.75%
           
    (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)
     June 30,
    2022    		March 31,
    2022    		December 31,
    2021    		 September 30,
    2021    		June 30,
    2021
    ASSETS(In Thousands Except Share Data)
    Cash and due from banks$50,429 $89,032 $66,265  $28,865 $36,079 
    Short-term investments 39,900  204,239  261,472   210,279  284,370 
    Total cash and cash equivalents 90,329  293,271  327,737   239,144  320,449 
    Investment securities available-for-sale 717,818  730,562  720,866   732,020  694,151 
    Total investment securities 717,818  730,562  720,866   732,020  694,151 
    Allowance for investment security losses (58) (4) -   -  - 
    Net investment securities 717,760  730,558  720,866   732,020  694,151 
    Loans and leases:      
    Commercial real estate loans 4,225,754  4,235,325  4,103,040   3,909,011  3,815,581 
    Commercial loans and leases 1,860,182  1,800,383  1,887,136   1,869,686  2,038,851 
    Consumer loans 1,205,976  1,187,422  1,164,281   1,152,997  1,165,843 
    Total loans and leases 7,291,912  7,223,130  7,154,457   6,931,694  7,020,275 
    Allowance for loan and lease losses (93,188) (95,463) (99,084)  (102,515) (106,474)
        Net loans and leases 7,198,724  7,127,667  7,055,373   6,829,179  6,913,801 
    Restricted equity securities 35,406  29,066  28,981   28,098  31,627 
    Premises and equipment, net of accumulated depreciation 69,557  69,365  70,359   70,811  71,240 
    Right-of-use asset operating leases 18,226  19,571  20,508   21,879  22,682 
    Deferred tax asset 50,736  46,886  38,987   39,643  41,324 
    Goodwill 160,427  160,427  160,427   160,427  160,427 
    Identified intangible assets, net of accumulated amortization 2,022  2,142  2,276   2,484  2,692 
    Other real estate owned and repossessed assets 507  990  718   601  372 
    Other assets 170,536  153,793  176,390   188,363  203,199 
            Total assets$8,514,230 $8,633,736 $8,602,622  $8,312,649 $8,461,964 
    LIABILITIES AND STOCKHOLDERS' EQUITY      
    Deposits:      
    Demand checking accounts$1,845,365 $1,903,331 $1,888,462  $1,816,116 $1,926,713 
    NOW accounts 628,791  627,904  604,097   513,032  495,598 
    Savings accounts 894,926  967,183  915,804   823,095  782,482 
    Money market accounts 2,402,992  2,432,377  2,358,306   2,393,362  2,250,651 
    Certificate of deposit accounts 1,006,786  1,048,036  1,117,695   1,141,861  1,178,131 
    Brokered deposit accounts 115,597  115,547  165,542   185,544  261,126 
       Total deposits 6,894,457  7,094,378  7,049,906   6,873,010  6,894,701 
    Borrowed funds:      
    Advances from the FHLBB 307,967  201,236  147,907   113,977  204,154 
    Subordinated debentures and notes 83,970  83,934  83,897   83,859  83,821 
    Other borrowed funds 86,263  107,727  125,517   69,703  75,039 
       Total borrowed funds 478,200  392,897  357,321   267,539  363,014 
    Operating lease liabilities 18,226  19,571  20,508   21,879  22,682 
    Mortgagors’ escrow accounts 5,771  5,780  6,296   6,455  6,231 
    Reserve for unfunded credits 17,511  16,305  14,794   12,736  13,142 
    Accrued expenses and other liabilities 131,569  122,870  158,455   152,578  189,942 
       Total liabilities 7,545,734  7,651,801  7,607,280   7,334,197  7,489,712 
    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 738,544  737,658  736,826   735,990  738,557 
    Retained earnings, partially restricted 372,677  357,576  342,639   323,862  304,466 
    Accumulated other comprehensive income (44,977) (29,322) (110)  2,615  6,089 
    Treasury stock, at cost;      
    7,995,888, 7,037,464, 7,037,464, 7,034,754, and 6,536,478 shares, respectively (98,525) (84,718) (84,718)  (84,684) (77,493)
    Unallocated common stock held by the Employee Stock Ownership Plan;      
    11,442, 18,051, 24,660, 31,278, and 37,890 shares, respectively (75) (111) (147)  (183) (219)
       Total stockholders' equity 968,496  981,935  995,342   978,452  972,252 
          Total liabilities and stockholders' equity$8,514,230 $8,633,736 $8,602,622  $8,312,649 $8,461,964 
                     


    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Consolidated Statements of Income (Unaudited)
     Three Months Ended
     June 30,
    2022    		March 31,
    2022    		December 31,
    2021    		September 30,
    2021    		June 30,
    2021
     (In Thousands Except Share Data)
    Interest and dividend income:     
    Loans and leases$74,287$71,721 $73,560 $74,332 $75,026 
    Debt securities 3,249 2,996  2,972  2,967  3,121 
    Marketable and restricted equity securities 337 328  325  313  233 
    Short-term investments 156 66  88  83  42 
    Total interest and dividend income 78,029 75,111  76,945  77,695  78,422 
    Interest expense:     
    Deposits 4,282 3,771  4,055  4,571  5,380 
    Borrowed funds 1,880 1,492  1,429  2,427  1,936 
    Total interest expense 6,162 5,263  5,484  6,998  7,316 
    Net interest income 71,867 69,848  71,461  70,697  71,106 
    Provision (credit) for credit losses 173 (164) 751  (3,110) (3,331)
    Provision for investment losses 54 4  -  -  - 
    Net interest income after provision for credit losses 71,640 70,008  70,710  73,807  74,437 
    Non-interest income:     
    Deposit fees 2,744 2,500  2,653  2,629  3,015 
    Loan fees 666 747  448  487  607 
    Loan level derivative income, net 1,615 686  3,981  218  7 
    Loss (gain) on investment securities, net - -  (32) -  1 
    Gain on sales of loans and leases held-for-sale 291 344  1,933  557  538 
    Other 1,612 1,252  1,716  1,695  1,742 
    Total non-interest income 6,928 5,529  10,699  5,586  5,910 
    Non-interest expense:     
    Compensation and employee benefits 28,772 26,884  28,598  27,206  25,161 
    Occupancy 3,807 4,284  3,558  3,567  3,832 
    Equipment and data processing 4,931 5,078  4,576  4,556  4,697 
    Professional services 1,219 1,226  1,151  1,072  1,245 
    FDIC insurance 739 728  617  662  657 
    Advertising and marketing 1,319 1,272  880  1,077  1,110 
    Amortization of identified intangible assets 120 134  208  208  228 
    Merger and acquisition expense 535 -  -  -  - 
    Other 3,429 2,881  3,321  2,574  1,036 
    Total non-interest expense 44,871 42,487  42,909  40,922  37,966 
    Income before provision for income taxes 33,697 33,050  38,500  38,471  42,381 
    Provision for income taxes 8,502 8,345  9,955  9,632  10,779 
    Net income$25,195$24,705 $28,545 $28,839 $31,602 
    Earnings per common share:     
    Basic$0.33$0.32 $0.37 $0.37 $0.40 
    Diluted$0.33$0.32 $0.37 $0.37 $0.40 
    Weighted average common shares outstanding during the period:    
    Basic 77,091,013 77,617,227  77,610,608  78,000,261  78,150,364 
    Diluted 77,419,288 77,926,822  77,864,097  78,240,633  78,470,451 
    Dividends paid per common share$0.130$0.125 $0.125 $0.120 $0.120 
          


    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Consolidated Statements of Income (Unaudited)
      
     Six Months Ended June 30,
      2022 2021 
     (In Thousands Except Share Data)
    Interest and dividend income:  
    Loans and leases$146,008$150,035 
    Debt securities 6,245 6,239 
    Marketable and restricted equity securities 665 534 
    Short-term investments 222 81 
    Total interest and dividend income 153,140 156,889 
    Interest expense:  
    Deposits 8,053 12,087 
    Borrowed funds 3,372 4,587 
    Total interest expense 11,425 16,674 
    Net interest income 141,715 140,215 
    Provision (credit) for credit losses 9 (5,478)
    Provision for investment losses 58 - 
    Net interest income after provision for credit losses 141,648 145,693 
    Non-interest income:  
    Deposit Fees 5,244 5,296 
    Loan Fees 1,413 1,160 
    Loan level derivative income, net 2,301 481 
    (Loss) gain on investment securities, net - (6)
    Gain on sales of loans and leases held-for-sale 635 1,247 
    Other 2,864 2,526 
    Total non-interest income 12,457 10,704 
    Non-interest expense:  
    Compensation and employee benefits 55,656 50,982 
    Occupancy 8,091 7,836 
    Equipment and data processing 10,009 9,190 
    Professional services 2,445 2,471 
    FDIC insurance 1,467 1,701 
    Advertising and marketing 2,591 2,210 
    Amortization of identified intangible assets 254 460 
    Merger and acquisition expense 535 - 
    Other 6,310 3,927 
    Total non-interest expense 87,358 78,777 
    Income before provision for income taxes 66,747 77,620 
    Provision for income taxes 16,847 19,564 
    Net income$49,900$58,056 
    Earnings per common share:  
    Basic$0.65$0.74 
    Diluted$0.65$0.74 
    Weighted average common shares outstanding during the period: 
    Basic 77,352,666 78,147,076 
    Diluted 77,671,601 78,437,275 
    Dividends paid per common share$0.255$0.235 
       



    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Asset Quality Analysis (Unaudited)
     At and for the Three Months Ended
     June 30,
    2022    		March 31,
    2022    		December 31, 2021September 30,
    2021    		June 30,
    2021
     (Dollars in Thousands)
    NONPERFORMING ASSETS:     
    Loans and leases accounted for on a nonaccrual basis:     
    Commercial real estate mortgage$6,470 $8,313 $10,848 $10,963 $11,657 
    Total commercial real estate loans 6,470  8,313  10,848  10,963  11,657 
          
    Commercial 892  1,366  2,318  2,539  3,207 
    Equipment financing 10,183  11,685  15,014  17,655  14,872 
    Condominium association 71  77  84  91  97 
    Total commercial loans and leases 11,146  13,128  17,416  20,285  18,176 
          
    Residential mortgage 2,412  3,394  3,909  4,150  3,638 
    Home equity 721  680  285  461  744 
    Other consumer 3  1  1  1  1 
    Total consumer loans 3,136  4,075  4,195  4,612  4,383 
          
    Total nonaccrual loans and leases 20,752  25,516  32,459  35,860  34,216 
          
    Other repossessed assets 507  990  718  601  372 
    Total nonperforming assets$21,259 $26,506 $33,177 $36,461 $34,588 
          
    Loans and leases past due greater than 90 days and still accruing$266 $4 $1 $838 $3,154 
          
    Troubled debt restructurings on accrual 11,524  10,858  12,580  13,526  14,387 
    Troubled debt restructurings on nonaccrual 5,097  5,189  6,709  6,655  6,410 
    Total troubled debt restructurings$16,621 $16,047 $19,289 $20,181 $20,797 
          
    Nonperforming loans and leases as a percentage of total loans and leases 0.28% 0.35% 0.45% 0.52% 0.49%
    Nonperforming assets as a percentage of total assets 0.25% 0.31% 0.39% 0.44% 0.41%
          
    PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:   
    Allowance for loan and lease losses at beginning of period$95,463 $99,084 $102,515 $106,474 $109,837 
    Charge-offs (1,533) (2,344) (2,562) (1,600) (1,221)
    Recoveries 291  397  438  345  626 
    Net charge-offs (1,242) (1,947) (2,124) (1,255) (595)
    (Credit) provision for loan and lease losses excluding unfunded commitments * (1,033) (1,674) (1,307) (2,704) (2,768)
    Allowance for loan and lease losses at end of period$93,188 $95,463 $99,084 $102,515 $106,474 
          
    Allowance for loan and lease losses as a percentage of total loans and leases 1.28% 1.32% 1.38% 1.48% 1.52%
          
    NET CHARGE-OFFS:     
    Commercial real estate loans$(6)$31 $- $(1)$17 
    Commercial loans and leases 1,254  1,948  2,143  1,276  695 
    Consumer loans (6) (32) (19) (20) (117)
    Total net charge-offs$1,242 $1,947 $2,124 $1,255 $595 
          
    Net loan and lease charge-offs as a percentage of average loans and leases (annualized) 0.07% 0.11% 0.12% 0.07% 0.03%
          
    *Provision for loan and lease losses does not include provision (credit) of $1.2 million, $1.5 million, $2.1 million, $(0.4) million, $(0.6) million, for credit losses on unfunded commitments during the three months ended June 30, 2022, March 31, 2022, December 31, 2021, September 30, 2021 and June 30, 2021, respectively.     
     


    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Average Yields / Costs (Unaudited)
     Three Months Ended
     June 30, 2022March 31, 2022June 30, 2021
     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)$726,374$3,2491.79%$720,263$2,9961.66%$721,029$3,1211.73%
    Marketable and restricted equity securities (2) 30,461 3374.42% 27,909 3284.70% 34,989 2332.67%
    Short-term investments 99,905 1560.62% 192,475 660.14% 234,317 420.07%
    Total investments 856,740 3,7421.75% 940,647 3,3901.44% 990,335 3,3961.37%
    Loans and Leases:         
    Commercial real estate loans (3) 4,220,257 38,9673.65% 4,152,414 36,0273.47% 3,780,920 34,3203.59%
    Commercial loans (3) 695,365 7,0744.03% 755,809 7,9984.23% 1,115,910 13,0404.62%
    Equipment financing (3) 1,129,606 17,8976.34% 1,105,194 18,0126.52% 1,074,469 17,9636.69%
    Residential mortgage loans (3) 818,826 7,1233.48% 804,939 6,9923.47% 788,296 6,9273.51%
    Other consumer loans (3) 376,225 3,2743.48% 366,534 2,7503.04% 368,845 2,8333.08%
    Total loans and leases 7,240,279 74,3354.11% 7,184,890 71,7794.00% 7,128,440 75,0834.21%
      Total interest-earning assets 8,097,019 78,0773.86% 8,125,537 75,1693.70% 8,118,775 78,4793.87%
    Non-interest-earning assets 418,311   405,506   421,453  
    Total assets$8,515,330  $8,531,043  $8,540,228  
              
    Liabilities and Stockholders' Equity:         
    Interest-bearing liabilities:         
    Deposits:         
    NOW accounts$612,439 2160.14%$589,891 1030.07%$499,883 1460.12%
    Savings accounts 930,957 2110.09% 933,173 1980.09% 774,406 2480.13%
    Money market accounts 2,429,043 2,0730.34% 2,416,577 1,5700.26% 2,247,997 1,4970.27%
    Certificates of deposit 1,018,471 1,6940.67% 1,091,729 1,8480.69% 1,226,668 3,1021.01%
    Brokered deposit accounts 115,535 880.30% 132,751 520.16% 418,166 3870.37%
    Total interest-bearing deposits 5,106,445 4,2820.34% 5,164,121 3,7710.30% 5,167,120 5,3800.42%
    Borrowings         
    Advances from the FHLBB 183,047 4891.06% 103,878 1870.72% 250,102 6631.05%
    Subordinated debentures and notes 83,952 1,2626.02% 83,915 1,2445.93% 83,802 1,2425.93%
    Other borrowed funds 106,363 1290.48% 130,080 610.19% 74,285 310.17%
    Total borrowings 373,362 1,8801.99% 317,873 1,4921.88% 408,189 1,9361.88%
      Total interest-bearing liabilities 5,479,807 6,1620.45% 5,481,994 5,2630.39% 5,575,309 7,3160.53%
    Non-interest-bearing liabilities:         
    Demand checking accounts 1,886,284   1,880,039   1,785,023  
    Other non-interest-bearing liabilities 173,072   171,717   222,689  
    Total liabilities 7,539,163   7,533,750   7,583,021  
    Stockholders’ equity 976,167   997,293   957,207  
    Total liabilities and equity$8,515,330  $8,531,043  $8,540,228  
    Net interest income (tax-equivalent basis) /Interest-rate spread (4)  71,9153.41%  69,9063.31%  71,1633.34%
    Less adjustment of tax-exempt income  48   58   57 
    Net interest income $71,867  $69,848  $71,106 
    Net interest margin (5)  3.56%  3.49%  3.52%
              
    (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
    Average Yields / Costs (Unaudited)
     Six Months Ended
     June 30, 2022June 30, 2021
     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)$723,336$6,2451.73%$737,771$6,2391.69%
    Marketable and restricted equity securities (2) 29,192 6654.55% 40,302 5342.65%
    Short-term investments 145,934 2220.30% 213,152 810.08%
    Total investments 898,462 7,1321.59% 991,225 6,8541.38%
    Loans and Leases:      
    Commercial real estate loans (3) 4,186,523 74,9943.56% 3,783,394 68,5653.60%
    Commercial loans (3) 725,422 15,0724.13% 1,182,498 25,7864.34%
    Equipment financing (3) 1,117,467 35,9096.43% 1,076,741 36,0066.69%
    Residential mortgage loans (3) 811,921 14,1153.48% 784,562 14,1593.61%
    Other consumer loans (3) 371,407 6,0243.27% 372,198 5,6283.05%
    Total loans and leases 7,212,740 146,1144.05% 7,199,393 150,1444.17%
      Total interest-earning assets 8,111,202 153,2463.78% 8,190,618 156,9983.83%
    Non-interest-earning assets 411,944   436,121  
    Total assets$8,523,146  $8,626,739  
           
    Liabilities and Stockholders' Equity:      
    Interest-bearing liabilities:      
    Deposits:      
    NOW accounts$601,227 3190.11%$488,949 2760.11%
    Savings accounts 932,059 4090.09% 743,738 4830.13%
    Money market accounts 2,422,845 3,6430.30% 2,166,702 2,9830.28%
    Certificates of deposit 1,054,897 3,5420.68% 1,277,110 7,2561.15%
    Brokered deposit accounts 124,096 1400.23% 513,963 1,0890.43%
    Total interest-bearing deposits 5,135,124 8,0530.32% 5,190,462 12,0870.47%
    Borrowings      
    Advances from the FHLBB 143,681 6760.94% 368,661 2,0331.10%
    Subordinated debentures and notes 83,934 2,5065.97% 83,783 2,4845.93%
    Other borrowed funds 118,156 1900.32% 83,288 700.17%
    Total borrowings 345,771 3,3721.94% 535,732 4,5871.70%
      Total interest-bearing liabilities 5,480,895 11,4250.42% 5,726,194 16,6740.59%
    Non-interest-bearing liabilities:      
    Demand checking accounts 1,883,179   1,714,589  
    Other non-interest-bearing liabilities 172,400   234,082  
    Total liabilities 7,536,474   7,674,865  
    Stockholders’ equity 986,672   951,874  
    Total liabilities and equity$8,523,146  $8,626,739  
    Net interest income (tax-equivalent basis) /Interest-rate spread (4)  141,8213.36%  140,3243.24%
    Less adjustment of tax-exempt income  106   109 
    Net interest income $141,715  $140,215 
    Net interest margin (5)  3.53%  3.45%
           
    (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
    June 30,    		At and for the Six Months Ended
    June 30,
       2022  2021  2022  2021 
    Reconciliation Table - Non-GAAP Financial Information  (Dollars in Thousands Except Share Data)
         
    Net income$25,195 $31,602 $49,900 $58,056 
    Less:     
    Security gains (losses) (after-tax) -  1  -  (4)
    Add:     
    Merger and acquisition expenses (after-tax) 400  -  400  - 
    Operating earnings $25,595 $31,601 $50,300 $58,060 
          
    Operating earnings per common share:     
    Basic $0.33 $0.40 $0.65 $0.74 
    Diluted  0.33  0.40  0.65  0.74 
          
    Weighted average common shares outstanding during the period:    
    Basic  77,091,013  78,150,364  77,352,666  78,147,076 
    Diluted  77,419,288  78,470,451  77,671,601  78,437,275 
          
          
    Return on average assets * 1.18% 1.48% 1.17% 1.35%
    Less:     
    Security gains (losses) (after-tax) * -% -% -% -%
    Add:     
    Merger and acquisition expenses (after-tax) * 0.02% -% 0.01% -%
    Operating return on average assets * 1.20% 1.48% 1.18% 1.35%
          
          
    Return on average tangible assets * 1.21% 1.51% 1.19% 1.37%
    Less:     
    Security gains (losses) (after-tax) * -% -% -% -%
    Add:     
    Merger and acquisition expenses (after-tax) * 0.02% -% 0.01% -%
    Operating return on average tangible assets * 1.23% 1.51% 1.20% 1.37%
          
          
    Return on average stockholders' equity * 10.32% 13.21% 10.11% 12.20%
    Less:     
    Security gains (losses) (after-tax) * -% -% -% -%
    Add:     
    Merger and acquisition expenses (after-tax) * 0.16% -% 0.08% -%
    Operating return on average stockholders' equity * 10.48% 13.21% 10.19% 12.20%
          
          
    Return on average tangible stockholders' equity * 12.39% 15.92% 12.11% 14.73%
    Less:     
    Security gains (losses) (after-tax) * -% -% -% -%
    Add:     
    Merger and acquisition expenses (after-tax) * 0.20% -% 0.10% -%
    Operating return on average tangible stockholders' equity * 12.59% 15.92% 12.21% 14.73%
          
    * Ratios at and for the three and six months ended are annualized.    
          
          
     At and for the Three Months Ended
     June 30,
    2022    		March 31,
    2022    		December 31,
    2021    		September 30,
    2021    		June 30,
    2021
     (Dollars in Thousands)
          
    Net income, as reported$25,195 $24,705 $28,545 $28,839 $31,602 
          
    Average total assets$8,515,330 $8,531,043 $8,462,231 $8,360,635 $8,540,228 
    Less: Average goodwill and average identified intangible assets, net 162,507  162,632  162,804  163,011  163,224 
    Average tangible assets$8,352,823 $8,368,411 $8,299,427 $8,197,624 $8,377,004 
          
    Return on average tangible assets (annualized) 1.21 % 1.18 % 1.38 % 1.41 % 1.51 %
          
    Average total stockholders’ equity$976,167 $997,293 $987,522 $978,371 $957,207 
    Less: Average goodwill and average identified intangible assets, net 162,507  162,632  162,804  163,011  163,224 
    Average tangible stockholders’ equity$813,660 $834,661 $824,718 $815,360 $793,983 
          
    Return on average tangible stockholders’ equity (annualized) 12.39 % 11.84 % 13.84 % 14.15 % 15.92 %
          
    Total stockholders’ equity$968,496 $981,935 $995,342 $978,452 $972,252 
    Less:     
    Goodwill 160,427  160,427  160,427  160,427  160,427 
    Identified intangible assets, net 2,022  2,142  2,276  2,484  2,692 
    Tangible stockholders' equity$806,047 $819,366 $832,639 $815,541 $809,133 
          
    Total assets$8,514,230 $8,633,736 $8,602,622 $8,312,649 $8,461,964 
    Less:     
    Goodwill 160,427  160,427  160,427  160,427  160,427 
    Identified intangible assets, net 2,022  2,142  2,276  2,484  2,692 
    Tangible assets$8,351,781 $8,471,167 $8,439,919 $8,149,738 $8,298,845 
          
    Tangible stockholders’ equity to tangible assets 9.65 % 9.67 % 9.87 % 10.01 % 9.75 %
          
    Tangible stockholders' equity$806,047 $819,366 $832,639 $815,541 $809,133 
          
    Number of common shares issued 85,177,172  85,177,172  85,177,172  85,177,172  85,177,172 
    Less:     
    Treasury shares 7,995,888  7,037,464  7,037,464  7,034,754  6,536,478 
    Unallocated ESOP shares 11,442  18,051  24,660  31,278  37,890 
    Unvested restricted shares 497,297  500,098  500,098  502,808  448,105 
    Number of common shares outstanding 76,672,545  77,621,559  77,614,950  77,608,332  78,154,699 
          
    Tangible book value per common share$ 10.51 $ 10.56 $ 10.73 $ 10.51 $ 10.35 
          
    Allowance for loan and lease losses$93,188 $95,463 $99,084 $102,515 $106,474 
          
    Total loans and leases$7,291,912 $7,223,130 $7,154,457 $6,931,694 $7,020,275 
    Less:     
    Total PPP loans 1,138  14,013  67,711  160,586  348,411 
     Total loans and leases excluding PPP loans$7,290,774 $7,209,117 $7,086,746 $6,771,108 $6,671,864 
          
    Allowance for loan and lease losses as a percentage of total loans and leases less PPP loans 1.28 % 1.32 % 1.40 % 1.51 % 1.60 %
          

    A PDF accompanying this announcement is available at http://ml.globenewswire.com/Resource/Download/bdd70069-9633-40ce-a60c-0238d99a60db 


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