Brookline Bancorp Announces Record Second Quarter Results

BOSTON, July 28, 2021 (GLOBE NEWSWIRE) -- Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced record net income of $31.6 million, or $0.40 per basic and diluted share, for the second quarter of 2021, compared to net income of $26.5 million, or $0.34 per basic and diluted share, for the first quarter of 2021, and net income of $19.6 million, or $0.25 per basic and diluted share, for the second quarter of 2020.

“We are pleased to report earnings of $31.6 million for the second quarter of 2021 representing $0.40 per share,” Paul Perrault, Chairman and Chief Executive Officer of the Company continued, “Brookline Bancorp and its employees continue to execute on our strategy of high performance for both our customers and our stockholders. We look forward to continued success in the second half of 2021.”

BALANCE SHEET

Total assets at June 30, 2021 decreased $97.8 million to $8.5 billion from $8.6 billion at March 31, 2021, and decreased $607.7 million from $9.1 billion at June 30, 2020. At June 30, 2021, total loans and leases were $7.0 billion, representing a decrease of $247.3 million from March 31, 2021, and a decrease of $387.4 million from June 30, 2020.

The Company funded a total of 4,700 of SBA Paycheck Protection Program ("PPP") loans in the aggregate amount of $872.1 million. As of June 30, 2021, $348.4 million in PPP loans remain outstanding, net of deferred fees and costs of $10.3 million. Excluding PPP loan activity, the core loan portfolio grew $9.1 million in the quarter compared to a decline of $117.6 million in the first quarter.

Total investment securities at June 30, 2021 decreased $36.3 million to $694.2 million from $730.4 million at March 31, 2021, and decreased $162.3 million from $856.5 million at June 30, 2020. Total cash and cash equivalents at June 30, 2021 increased $189.5 million to $320.4 million from $130.9 million at March 31, 2021, and increased $65.5 million from $254.9 million at June 30, 2020. As of June 30, 2021, total investment securities and total cash and cash equivalents represented 12.0 percent of total assets as compared to 10.1 percent and 12.3 percent as of March 31, 2021 and June 30, 2020, respectively.

Total deposits at June 30, 2021 increased $27.9 million to $6.89 billion from $6.87 billion at March 31, 2021 and increased $454.5 million from $6.4 billion at June 30, 2020.

Total borrowed funds at June 30, 2021 decreased $183.0 million to $363.0 million from $546.0 million at March 31, 2021 and decreased $1.0 billion from $1.4 billion at June 30, 2020.

The ratio of stockholders’ equity to total assets was 11.49 percent at June 30, 2021, as compared to 11.04 percent at March 31, 2021, and 10.21 percent at June 30, 2020. The ratio of tangible stockholders’ equity to tangible assets (non-GAAP) was 9.75 percent at June 30, 2021, as compared to 9.31 percent at March 31, 2021, and 8.56 percent at June 30, 2020. Tangible book value per share (non-GAAP) increased $0.34 from $10.01 at March 31, 2021 to $10.35 at June 30, 2021, compared to $9.67 at June 30, 2020.

NET INTEREST INCOME

Net interest income increased $2.0 million to $71.1 million for the second quarter of 2021 from $69.1 million at the quarter ended March 31, 2021. The net interest margin increased 13 basis points to 3.52 percent for the three months ended June 30, 2021 from 3.39 percent for the three months ended March 31, 2021.

NON-INTEREST INCOME

Total non-interest income for the quarter ended June 30, 2021 increased $1.1 million to $5.9 million from $4.8 million for the quarter ended March 31, 2021. The increase was primarily driven by an increase of $0.7 million in deposit fees and an increase of $1.0 million in other non-interest income, partially offset by a decrease of $0.4 million in loan level derivative income, net and a decrease of $0.2 million in gain on sales of loans and leases.

PROVISION FOR CREDIT LOSSES

The Company recorded a negative provision for credit losses of $3.3 million for the quarter ended June 30, 2021, compared to a negative provision for credit losses of $2.1 million for the quarter ended March 31, 2021. Total net charge-offs for the second quarter of 2021 were $0.6 million compared to $1.8 million in the first quarter of 2021. The decrease is primarily driven by a combination of a decrease in charge-offs of equipment financing loans and commercial loans of $0.6 million and $0.3 million, respectively, and an increase in recoveries of equipment financing loans and home equity loans of $0.2 million and $0.1 million, respectively. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis decreased to 3 basis points for the second quarter of 2021 from 10 basis points for the first quarter of 2021.

The allowance for loan and lease losses represented 1.52 percent of total loans and leases at June 30, 2021, compared to 1.51 percent at March 31, 2021, and 1.61 percent at June 30, 2020. Excluding PPP loans, the allowance for loan and lease losses represents 1.60 percent of total loans and leases at June 30, 2021 compared to 1.65 percent at March 31, 2021, and 1.75 percent at June 30, 2020.

ASSET QUALITY

The ratio of nonperforming loans and leases to total loans and leases was 0.49 percent at June 30, 2021, an increase from 0.43 percent at March 31, 2021. Total nonaccrual loans and leases increased $3.2 million to $34.2 million at June 30, 2021 from $31.0 million at March 31, 2021. The ratio of nonperforming assets to total assets was 0.41 percent at June 30, 2021, a decrease from 0.44 percent at March 31, 2021. Total nonperforming assets decreased $2.8 million to $34.6 million at June 30, 2021 from $37.4 million at March 31, 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 June 30, 2021, approximately 90 percent of loans granted an initial loan payment deferral have returned to payment status and 151 credits totaling $96.0 million or 1.4 percent of total loans outstanding are operating under modified terms.

NON-INTEREST EXPENSE

Non-interest expense for the quarter ended June 30, 2021 decreased $2.8 million to $38.0 million from $40.8 million for the quarter ended March 31, 2021. The decrease was primarily driven by decreases of $0.6 million in compensation and employee benefits expense, $0.4 million in FDIC insurance expense and $1.8 million in other non-interest expense due to a $2.1 million gain on sale of other real estate owned.

PROVISION FOR INCOME TAXES

The effective tax rate was 25.4 percent and 25.2 percent for the three and six months ended June 30, 2021 compared to 24.9 percent for the three months ended March 31, 2021 and 24.9 percent and a negative 2.2 percent for the three and six months ended June 30, 2020.

RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

The annualized return on average assets increased to 1.48 percent during the second quarter 2021 from 1.21 percent for the first quarter of 2021.

The annualized return on average stockholders' equity increased to 13.21 percent during the second quarter of 2021 from 11.18 percent for the first quarter of 2021. The annualized return on average tangible stockholders’ equity increased to 15.92 percent for the second quarter of 2021 from 13.51 percent for the first quarter of 2021.

DIVIDEND DECLARED

The Company’s Board of Directors approved a dividend of $0.12 per share for the quarter ended June 30, 2021. The dividend will be paid on August 27, 2021 to stockholders of record on August 13, 2021.

CONFERENCE CALL

The Company will conduct a conference call/webcast at 1:30 PM Eastern Daylight Time on Thursday, July 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/brkl1210729.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: 10157750.

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. 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 the COVID-19 pandemic 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, 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 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, 2021				March 31, 2021				December 31, 2020				September 30, 2020				June 30, 2020
	(Dollars In Thousands Except per Share Data)
Earnings Data:
Net interest income	$	71,106			$	69,109			$	68,225			$	65,938			$	64,288
(Credit) provision for credit losses		(3,331	)			(2,147	)			(2,103	)			4,528				5,347
Non-interest income		5,910				4,794				4,219				4,862				6,235
Non-interest expense		37,966				40,811				40,038				40,947				39,109
Income before provision for income taxes		42,381				35,239				34,509				25,325				26,067
Net income		31,602				26,454				26,663				18,679				19,571
Performance Ratios:
Net interest margin (1)		3.52	%			3.39	%			3.23	%			3.08	%			3.09	%
Interest-rate spread (1)		3.34	%			3.15	%			3.03	%			2.85	%			2.75	%
Return on average assets (annualized)		1.48	%			1.21	%			1.20	%			0.83	%			0.88	%
Return on average tangible assets (annualized) (non-GAAP)		1.51	%			1.24	%			1.22	%			0.84	%			0.90	%
Return on average stockholders' equity (annualized)		13.21	%			11.18	%			11.38	%			7.99	%			8.45	%
Return on average tangible stockholders' equity (annualized) (non-GAAP)		15.92	%			13.51	%			13.79	%			9.70	%			10.28	%
Efficiency ratio (2)		49.30	%			55.22	%			55.27	%			57.83	%			55.46	%
Per Common Share Data:
Net income (loss) — Basic	$	0.40			$	0.34			$	0.34			$	0.24			$	0.25
Net income (loss) — Diluted		0.40				0.34				0.34				0.24				0.25
Cash dividends declared		0.120				0.120				0.115				0.115				0.115
Book value per share (end of period)		12.44				12.10				12.05				11.84				11.75
Tangible book value per share (end of period) (non-GAAP)		10.35				10.01				9.96				9.77				9.67
Stock price (end of period)		14.95				15.00				12.04				8.65				10.08
Balance Sheet:
Total assets	$	8,461,964			$	8,559,810			$	8,942,424			$	9,000,192			$	9,069,667
Total loans and leases		7,020,275				7,267,552				7,269,553				7,396,358				7,407,697
Total deposits		6,894,701				6,866,786				6,910,696				6,792,523				6,440,233
Total stockholders’ equity		972,252				945,399				941,778				935,558				926,413
Asset Quality:
Nonperforming assets	$	34,588			$	37,403			$	44,963			$	39,365			$	42,754
Nonperforming assets as a percentage of total assets		0.41	%			0.44	%			0.50	%			0.44	%			0.47	%
Allowance for loan and lease losses	$	106,474			$	109,837			$	114,379			$	119,971			$	119,553
Allowance for loan and lease losses as a percentage of total loans and leases		1.52	%			1.51	%			1.57	%			1.62	%			1.61	%
Net loan and lease charge-offs	$	595			$	1,760			$	4,381			$	4,963			$	1,383
Net loan and lease charge-offs as a percentage of average loans and leases (annualized)		0.03	%			0.10	%			0.24	%			0.27	%			0.08	%
Capital Ratios:
Stockholders’ equity to total assets		11.49	%			11.04	%			10.53	%			10.39	%			10.21	%
Tangible stockholders’ equity to tangible assets (non-GAAP)		9.75	%			9.31	%			8.86	%			8.73	%			8.56	%
(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, 2021				March 31, 2021				December 31, 2020				September 30, 2020				June 30, 2020
ASSETS	(In Thousands Except Share Data)
Cash and due from banks	$	36,079			$	41,284			$	36,069			$	33,818			$	38,522
Short-term investments		284,370				89,643				398,848				283,515				216,394
Total cash and cash equivalents		320,449				130,927				434,917				317,333				254,916
Investment securities available-for-sale		694,151				729,901				745,822				783,867				854,505
Investment securities held-to-maturity		-				-				-				-				-
Equity securities held-for-trading		-				518				526				525				1,992
Total investment securities		694,151				730,419				746,348				784,392				856,497
Loans and leases:
Commercial real estate loans		3,815,581				3,790,341				3,823,826				3,835,372				3,837,703
Commercial loans and leases		2,038,851				2,324,202				2,274,899				2,354,613				2,361,463
Consumer loans		1,165,843				1,153,009				1,170,828				1,206,373				1,208,531
Total loans and leases		7,020,275				7,267,552				7,269,553				7,396,358				7,407,697
Allowance for loan and lease losses		(106,474	)			(109,837	)			(114,379	)			(119,971	)			(119,553	)
Net loans and leases		6,913,801				7,157,715				7,155,174				7,276,387				7,288,144
Restricted equity securities		31,627				40,400				49,786				61,715				71,638
Premises and equipment, net of accumulated depreciation		71,240				72,524				71,568				72,441				73,127
Right-of-use asset operating leases		22,682				23,180				24,143				23,492				24,343
Deferred tax asset		41,324				42,857				40,129				42,269				42,683
Goodwill		160,427				160,427				160,427				160,427				160,427
Identified intangible assets, net of accumulated amortization		2,692				2,920				3,152				3,464				3,775
Other real estate owned and repossessed assets		372				6,383				6,515				1,413				1,454
Other assets		203,199				192,058				250,265				256,859				292,663
Total assets	$	8,461,964			$	8,559,810			$	8,942,424			$	9,000,192			$	9,069,667
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand checking accounts	$	1,926,713			$	1,724,170			$	1,592,205			$	1,550,267			$	1,603,037
NOW accounts		495,598				481,988				513,948				459,902				417,622
Savings accounts		782,482				724,504				701,659				716,630				657,758
Money market accounts		2,250,651				2,192,468				2,018,977				1,878,258				1,809,868
Certificate of deposit accounts		1,178,131				1,273,105				1,389,998				1,492,913				1,601,768
Brokered deposit accounts		261,126				470,551				693,909				694,553				350,180
Total deposits		6,894,701				6,866,786				6,910,696				6,792,523				6,440,233
Borrowed funds:
Advances from the FHLBB		204,154				378,646				648,849				841,169				1,267,570
Subordinated debentures and notes		83,821				83,783				83,746				83,707				83,668
Other borrowed funds		75,039				83,574				87,652				80,169				55,431
Total borrowed funds		363,014				546,003				820,247				1,005,045				1,406,669
Operating lease liabilities		22,682				23,180				24,143				23,492				24,343
Mortgagors’ escrow accounts		6,231				6,483				5,901				6,429				6,467
Reserve for unfunded credits		13,142				13,705				13,071				13,964				14,816
Accrued expenses and other liabilities		189,942				158,254				226,588				223,181				250,726
Total liabilities		7,489,712				7,614,411				8,000,646				8,064,634				8,143,254
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		738,557				737,882				737,178				736,294				738,155
Retained earnings, partially restricted		304,466				282,301				264,892				247,336				237,808
Accumulated other comprehensive income		6,089				2,082				16,490				18,782				19,538
Treasury stock, at cost;
6,536,478, 6,534,602, 6,525,783, 5,629,854, and 5,859,708 shares, respectively		(77,493	)			(77,463	)			(77,343	)			(67,376	)			(69,572	)
Unallocated common stock held by the Employee Stock Ownership Plan;
37,890, 44,502, 51,114, 58,227, and 65,334 shares, respectively		(219	)			(255	)			(291	)			(330	)			(368	)
Total stockholders' equity		972,252				945,399				941,778				935,558				926,413
Total liabilities and stockholders' equity	$	8,461,964			$	8,559,810			$	8,942,424			$	9,000,192			$	9,069,667

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
	Three Months Ended
	June 30, 2021				March 31, 2021				December 31, 2020				September 30, 2020		June 30, 2020
	(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases	$	75,026			$	75,009			$	76,583			$	76,240			$	77,416
Debt securities		3,121				3,118				3,335				3,746				3,701
Marketable and restricted equity securities		233				301				490				672				908
Short-term investments		42				39				59				46				99
Total interest and dividend income		78,422				78,467				80,467				80,704				82,124
Interest expense:
Deposits		5,380				6,707				8,825				10,583				12,778
Borrowed funds		1,936				2,651				3,417				4,183				5,058
Total interest expense		7,316				9,358				12,242				14,766				17,836
Net interest income		71,106				69,109				68,225				65,938				64,288
(Credit) provision for credit losses		(3,331	)			(2,147	)			(2,103	)			4,528				5,347
Net interest income after provision for credit losses		74,437				71,256				70,328				61,410				58,941
Non-interest income:
Deposit fees		3,015				2,281				2,358				2,305				1,929
Loan fees		607				599				588				397				513
Loan level derivative income, net		7				474				145				527				1,440
Gain (loss) on investment securities, net		1				(7	)			-				54				586
Gain on sales of loans and leases held-for-sale		538				709				67				632				299
Other		1,742				738				1,061				947				1,468
Total non-interest income		5,910				4,794				4,219				4,862				6,235
Non-interest expense:
Compensation and employee benefits		25,161				25,821				25,054				26,092				24,619
Occupancy		3,832				4,004				3,806				3,802				3,825
Equipment and data processing		4,697				4,493				4,193				4,293				4,155
Professional services		1,245				1,226				1,338				1,112				1,056
FDIC insurance		657				1,044				1,630				1,363				858
Advertising and marketing		1,110				1,100				1,010				1,024				1,017
Amortization of identified intangible assets		228				232				312				312				311
Other		1,036				2,891				2,695				2,949				3,268
Total non-interest expense		37,966				40,811				40,038				40,947				39,109
Income before provision for income taxes		42,381				35,239				34,509				25,325				26,067
Provision for income taxes		10,779				8,785				7,846				6,646				6,496
Net income	$	31,602			$	26,454			$	26,663			$	18,679			$	19,571
Earnings per common share:
Basic	$	0.40			$	0.34			$	0.34			$	0.24			$	0.25
Diluted	$	0.40			$	0.34			$	0.34			$	0.24			$	0.25
Weighted average common shares outstanding during the period:
Basic		78,150,364				78,143,752				78,533,351				78,948,139				78,849,282
Diluted		78,470,451				78,404,063				78,680,873				79,055,901				79,015,274
Dividends paid per common share	$	0.120			$	0.115			$	0.115			$	0.115			$	0.115

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
	Six Months Ended June 30,
		2021				2020
	(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases	$	150,035			$	156,975
Debt securities		6,239				6,677
Marketable and restricted equity securities		534				1,686
Short-term investments		81				308
Total interest and dividend income		156,889				165,646
Interest expense:
Deposits		12,087				29,018
Borrowed funds		4,587				10,628
Total interest expense		16,674				39,646
Net interest income		140,215				126,000
(Credit) provision for credit losses		(5,478	)			59,461
Net interest income after provision for credit losses		145,693				66,539
Non-interest income:
Deposit Fees		5,296				4,387
Loan Fees		1,160				1,063
Loan level derivative income, net		481				3,596
(Loss) gain on investment securities, net		(6	)			1,916
Gain on sales of loans and leases held-for-sale		1,247				419
Other		2,526				4,182
Total non-interest income		10,704				15,563
Non-interest expense:
Compensation and employee benefits		50,982				49,838
Occupancy		7,836				7,778
Equipment and data processing		9,190				8,858
Professional services		2,471				2,707
FDIC insurance		1,701				1,236
Advertising and marketing		2,210				2,092
Amortization of identified intangible assets		460				647
Other		3,927				6,701
Total non-interest expense		78,777				79,857
Income before provision for income taxes		77,620				2,245
Provision (benefit) for income taxes		19,564				(50	)
Net income	$	58,056			$	2,295
Earnings per common share:
Basic	$	0.74			$	0.03
Diluted	$	0.74			$	0.03
Weighted average common shares outstanding during the period:
Basic		78,147,076				79,165,372
Diluted		78,437,275				79,340,524
Dividends paid per common share	$	0.235			$	0.230

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Asset Quality Analysis (Unaudited)
	At and for the Three Months Ended
	June 30, 2021				March 31, 2021				December 31, 2020				September 30, 2020				June 30, 2020
	(Dollars in Thousands)
NONPERFORMING ASSETS:
Loans and leases accounted for on a nonaccrual basis:
Commercial real estate mortgage	$	11,657			$	3,611			$	3,300			$	10,841			$	10,139
Multi-family mortgage		-				-				-				-				-
Construction		-				3,853				3,853				-				-
Total commercial real estate loans		11,657				7,464				7,153				10,841				10,139
Commercial		3,207				3,161				7,702				7,751				12,427
Equipment financing		14,872				15,772				16,757				13,372				13,100
Condominium association		97				106				112				117				190
Total commercial loans and leases		18,176				19,039				24,571				21,240				25,717
Residential mortgage		3,638				3,722				5,587				4,634				4,157
Home equity		744				793				1,136				1,235				1,278
Other consumer		1				2				1				2				9
Total consumer loans		4,383				4,517				6,724				5,871				5,444
Total nonaccrual loans and leases		34,216				31,020				38,448				37,952				41,300
Other real estate owned		-				5,328				5,415				-				-
Other repossessed assets		372				1,055				1,100				1,413				1,454
Total nonperforming assets	$	34,588			$	37,403			$	44,963			$	39,365			$	42,754
Loans and leases past due greater than 90 days and still accruing	$	3,154			$	1,179			$	11,975			$	1,180			$	1,974
Troubled debt restructurings on accrual		14,387				16,770				11,483				11,309				10,172
Troubled debt restructurings on nonaccrual		6,410				6,293				7,476				5,742				5,972
Total troubled debt restructurings	$	20,797			$	23,063			$	18,959			$	17,051			$	16,144
Nonperforming loans and leases as a percentage of total loans and leases		0.49	%			0.43	%			0.53	%			0.51	%			0.56	%
Nonperforming assets as a percentage of total assets		0.41	%			0.44	%			0.50	%			0.44	%			0.47	%
PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:
Allowance for loan and lease losses at beginning of period	$	109,837			$	114,379			$	119,971			$	119,553			$	113,181
CECL adjustment to retained earnings		-				-				-				-				-
Charge-offs		(1,221	)			(2,143	)			(4,810	)			(5,511	)			(1,803	)
Recoveries		626				383				429				548				420
Net charge-offs		(595	)			(1,760	)			(4,381	)			(4,963	)			(1,383	)
(Credit) provision for loan and lease losses excluding unfunded commitments *		(2,768	)			(2,782	)			(1,211	)			5,381				7,755
Allowance for loan and lease losses at end of period	$	106,474			$	109,837			$	114,379			$	119,971			$	119,553
Allowance for loan and lease losses as a percentage of total loans and leases		1.52	%			1.51	%			1.57	%			1.62	%			1.61	%
NET CHARGE-OFFS:
Commercial real estate loans	$	17			$	-			$	3,444			$	70			$	(94	)
Commercial loans and leases		695				1,809				1,011				4,917				1,498
Consumer loans		(117	)			(49	)			(74	)			(24	)			(21	)
Total net charge-offs	$	595			$	1,760			$	4,381			$	4,963			$	1,383
Net loan and lease charge-offs as a percentage of average loans and leases (annualized)		0.03	%			0.10	%			0.24	%			0.27	%			0.08	%
*Provision for loan and lease losses does not include (credit) provision of $(0.6) million, $0.6 million, $(0.9) million, $(0.9) million and $2.4 million for credit losses on unfunded commitments during the three months ended June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, respectively.

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Average Yields / Costs (Unaudited)
	Three Months Ended
	June 30, 2021									March 31, 2021									June 30, 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)	$	721,029		$	3,121		1.73	%		$	754,699		$	3,118		1.65	%		$	773,523		$	3,719		1.92	%
Marketable and restricted equity securities (2)		34,989			233		2.67	%			45,673			301		2.64	%			71,058			915		5.15	%
Short-term investments		234,317			42		0.07	%			191,751			39		0.08	%			245,577			99		0.16	%
Total investments		990,335			3,396		1.37	%			992,123			3,458		1.39	%			1,090,158			4,733		1.74	%
Loans and Leases:
Commercial real estate loans (3)		3,780,920			34,320		3.59	%			3,785,897			34,245		3.62	%			3,761,667			36,829		3.87	%
Commercial loans (3)		1,115,910			13,040		4.62	%			1,249,824			12,746		4.08	%			1,234,537			10,450		3.35	%
Equipment financing (3)		1,074,469			17,963		6.69	%			1,079,039			18,043		6.69	%			1,069,192			18,973		7.10	%
Residential mortgage loans (3)		788,296			6,927		3.51	%			780,785			7,232		3.71	%			814,431			8,068		3.96	%
Other consumer loans (3)		368,845			2,833		3.08	%			375,590			2,795		3.02	%			411,326			3,153		3.07	%
Total loans and leases		7,128,440			75,083		4.21	%			7,271,135			75,061		4.13	%			7,291,153			77,473		4.25	%
Total interest-earning assets		8,118,775			78,479		3.87	%			8,263,258			78,519		3.80	%			8,381,311			82,206		3.92	%
Non-interest-earning assets		421,453									450,900									488,229
Total assets	$	8,540,228								$	8,714,158								$	8,869,540
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts	$	499,883			146		0.12	%		$	477,893			130		0.11	%		$	395,158			114		0.12	%
Savings accounts		774,406			248		0.13	%			712,728			235		0.13	%			663,782			357		0.22	%
Money market accounts		2,247,997			1,497		0.27	%			2,084,503			1,486		0.29	%			1,784,343			2,074		0.47	%
Certificates of deposit		1,226,668			3,102		1.01	%			1,328,112			4,154		1.27	%			1,637,486			8,364		2.05	%
Brokered deposit accounts		418,166			387		0.37	%			610,824			702		0.47	%			381,709			1,869		1.97	%
Total interest-bearing deposits		5,167,120			5,380		0.42	%			5,214,060			6,707		0.52	%			4,862,478			12,778		1.06	%
Borrowings
Advances from the FHLBB		250,102			663		1.05	%			488,537			1,370		1.12	%			1,102,079			3,751		1.35	%
Subordinated debentures and notes		83,802			1,242		5.93	%			83,764			1,242		5.93	%			83,647			1,263		6.04	%
Other borrowed funds		74,285			31		0.17	%			92,391			39		0.17	%			70,795			44		0.25	%
Total borrowings		408,189			1,936		1.88	%			664,692			2,651		1.60	%			1,256,521			5,058		1.59	%
Total interest-bearing liabilities		5,575,309			7,316		0.53	%			5,878,752			9,358		0.65	%			6,118,999			17,836		1.17	%
Non-interest-bearing liabilities:
Demand checking accounts		1,785,023									1,643,373									1,512,089
Other non-interest-bearing liabilities		222,689									245,551									312,213
Total liabilities		7,583,021									7,767,676									7,943,301
Stockholders’ equity		957,207									946,482									926,239
Total liabilities and equity	$	8,540,228								$	8,714,158								$	8,869,540
Net interest income (tax-equivalent basis) /Interest-rate spread (4)					71,163		3.34	%						69,161		3.15	%						64,370		2.75	%
Less adjustment of tax-exempt income					57									52									82
Net interest income				$	71,106								$	69,109								$	64,288
Net interest margin (5)							3.52	%								3.39	%								3.09	%
(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, 2021									June 30, 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)	$	737,771		$	6,239		1.69	%		$	689,704		$	6,743		1.96	%
Marketable and restricted equity securities (2)		40,302			534		2.65	%			64,968			1,701		5.24	%
Short-term investments		213,152			81		0.08	%			164,943			308		0.37	%
Total investments		991,225			6,854		1.38	%			919,615			8,752		1.90	%
Loans and Leases:
Commercial real estate loans (3)		3,783,394			68,565		3.60	%			3,729,339			77,297		4.10	%
Commercial loans (3)		1,182,498			25,786		4.34	%			1,008,923			18,778		3.68	%
Equipment financing (3)		1,076,741			36,006		6.69	%			1,061,019			37,919		7.15	%
Residential mortgage loans (3)		784,562			14,159		3.61	%			812,507			16,002		3.94	%
Other consumer loans (3)		372,198			5,628		3.05	%			414,570			7,108		3.43	%
Total loans and leases		7,199,393			150,144		4.17	%			7,026,358			157,104		4.47	%
Total interest-earning assets		8,190,618			156,998		3.83	%			7,945,973			165,856		4.17	%
Non-interest-earning assets		436,121									471,710
Total assets	$	8,626,739								$	8,417,683
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts	$	488,949			276		0.11	%		$	377,399			230		0.12	%
Savings accounts		743,738			483		0.13	%			645,363			1,000		0.31	%
Money market accounts		2,166,702			2,983		0.28	%			1,731,496			6,315		0.73	%
Certificates of deposit		1,277,110			7,256		1.15	%			1,660,193			17,615		2.13	%
Brokered deposit accounts		513,963			1,089		0.43	%			369,856			3,858		2.10	%
Total interest-bearing deposits		5,190,462			12,087		0.47	%			4,784,307			29,018		1.22	%
Borrowings
Advances from the FHLBB		368,661			2,033		1.10	%			937,271			7,848		1.66	%
Subordinated debentures and notes		83,783			2,484		5.93	%			83,628			2,547		6.09	%
Other borrowed funds		83,288			70		0.17	%			80,924			233		0.58	%
Total borrowings		535,732			4,587		1.70	%			1,101,823			10,628		1.91	%
Total interest-bearing liabilities		5,726,194			16,674		0.59	%			5,886,130			39,646		1.35	%
Non-interest-bearing liabilities:
Demand checking accounts		1,714,589									1,323,202
Other non-interest-bearing liabilities		234,082									272,162
Total liabilities		7,674,865									7,481,494
Stockholders’ equity		951,874									936,189
Total liabilities and equity	$	8,626,739								$	8,417,683
Net interest income (tax-equivalent basis) /Interest-rate spread (4)					140,324		3.24	%						126,210		2.82	%
Less adjustment of tax-exempt income					109									210
Net interest income				$	140,215								$	126,000
Net interest margin (5)							3.45	%								3.19	%
(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)
				Three Months Ended   June 30,								Six Months Ended   June 30,
					2021				2020				2021				2020
Reconciliation Table - Non-GAAP Financial Information				(Dollars in Thousands Except Share Data)
Net income attributable to Brookline Bancorp, Inc.				$	31,602			$	19,571			$	58,056			$	2,295
Less:
Security gains (losses) (after-tax)					1				440				(4	)			1,958
Operating earnings				$	31,601			$	19,131			$	58,060			$	337
Operating earnings per common share:
Basic				$	0.40			$	0.24			$	0.74			$	-
Diluted					0.40				0.24				0.74				-
Weighted average common shares outstanding during the period:
Basic					78,150,364				78,849,282				78,147,076				79,165,372
Diluted					78,470,451				79,015,274				78,437,275				79,340,524
Return on average assets *					1.48	%			0.88	%			1.35	%			0.05	%
Less:
Security gains (losses) (after-tax) *					-	%			0.02	%			-	%			0.04	%
Operating return on average assets *					1.48	%			0.86	%			1.35	%			0.01	%
Return on average tangible assets *					1.51	%			0.90	%			1.37	%			0.06	%
Less:
Security gains (losses) (after-tax) *					-	%			0.02	%			-	%			0.05	%
Operating return on average tangible assets *					1.51	%			0.88	%			1.37	%			0.01	%
Return on average stockholders' equity *					13.21	%			8.45	%			12.20	%			0.49	%
Less:
Security gains (losses) (after-tax) *					-	%			0.19	%			-	%			0.42	%
Operating return on average stockholders' equity *					13.21	%			8.26	%			12.20	%			0.07	%
Return on average tangible stockholders' equity *					15.92	%			10.28	%			14.73	%			0.59	%
Less:
Security gains (losses) (after-tax) *					-	%			0.24	%			-	%			0.50	%
Operating return on average tangible stockholders' equity *					15.92	%			10.04	%			14.73	%			0.09	%
* Ratios at and for the three and six months ended are annualized.

 

	At and for the Three Months Ended
	June 30, 2021				March 31, 2021				December 31, 2020				September 30, 2020				June 30, 2020
	(Dollars in Thousands)
Net income, as reported	$	31,602			$	26,454			$	26,663			$	18,679			$	19,571
Average total assets	$	8,540,228			$	8,714,158			$	8,874,467			$	9,018,672			$	8,869,540
Less: Average goodwill and average identified intangible assets, net		163,224				163,457				163,758				164,072				164,385
Average tangible assets	$	8,377,004			$	8,550,701			$	8,710,709			$	8,854,600			$	8,705,155
Return on average tangible assets (annualized)		1.51	%			1.24	%			1.22	%			0.84	%			0.90	%
Average total stockholders’ equity	$	957,207			$	946,482			$	937,294			$	934,632			$	926,239
Less: Average goodwill and average identified intangible assets, net		163,224				163,457				163,758				164,072				164,385
Average tangible stockholders’ equity	$	793,983			$	783,025			$	773,536			$	770,560			$	761,854
Return on average tangible stockholders’ equity (annualized)		15.92	%			13.51	%			13.79	%			9.70	%			10.28	%
Total stockholders’ equity	$	972,252			$	945,399			$	941,778			$	935,558			$	926,413
Less:
Goodwill		160,427				160,427				160,427				160,427				160,427
Identified intangible assets, net		2,692				2,920				3,152				3,464				3,775
Tangible stockholders' equity	$	809,133			$	782,052			$	778,199			$	771,667			$	762,211
Total assets	$	8,461,964			$	8,559,810			$	8,942,424			$	9,000,192			$	9,069,667
Less:
Goodwill		160,427				160,427				160,427				160,427				160,427
Identified intangible assets, net		2,692				2,920				3,152				3,464				3,775
Tangible assets	$	8,298,845			$	8,396,463			$	8,778,845			$	8,836,301			$	8,905,465
Tangible stockholders’ equity to tangible assets		9.75	%			9.31	%			8.86	%			8.73	%			8.56	%
Tangible stockholders' equity	$	809,133			$	782,052			$	778,199			$	771,667			$	762,211
Number of common shares issued		85,177,172				85,177,172				85,177,172				85,177,172				85,177,172
Less:
Treasury shares		6,536,478				6,534,602				6,525,783				5,629,854				5,859,708
Unallocated ESOP shares		37,890				44,502				51,114				58,227				65,334
Unvested restricted shares		448,105				449,981				458,800				487,318				398,188
Number of common shares outstanding		78,154,699				78,148,087				78,141,475				79,001,773				78,853,942
Tangible book value per common share	$	10.35			$	10.01			$	9.96			$	9.77			$	9.67
Allowance for loan and lease losses	$	106,474			$	109,837			$	114,379			$	119,971			$	119,553
Total loans and leases	$	7,020,275			$	7,267,552			$	7,269,553			$	7,396,358			$	7,407,697
Less:
Total PPP loans		348,411				604,790				489,216				568,383				565,768
Total loans and leases excluding PPP loans	$	6,671,864			$	6,662,762			$	6,780,337			$	6,827,975			$	6,841,929
Allowance for loan and lease losses as a percentage of total loans and leases less PPP loans		1.60	%			1.65	%			1.69	%			1.76	%			1.75	%

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