Brookline Bancorp Announces Fourth Quarter Results

Brookline Bancorp, Inc.

Net Income of $29.7 million, EPS of $0.39

BOSTON, Jan. 25, 2023 (GLOBE NEWSWIRE) -- Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced net income of $29.7 million, or $0.39 per basic and diluted share, for the fourth quarter of 2022, compared to $30.1 million, or $0.39 per basic and diluted share, for the third quarter of 2022, and $28.5 million, or $0.37 per basic and diluted share, for the fourth quarter of 2021.

For the year ended December 31, 2022, the Company reported net income of $109.7 million, or $1.42 per basic and diluted share. This compared to $115.4 million, or $1.48 per basic and diluted share, for the year ended December 31, 2021.

Paul Perrault, Chairman and Chief Executive Officer, commented on the Company’s performance, “Brookline Bancorp had an excellent year in 2022. We again finished the year with exceptional loan growth and are well positioned as we look forward to 2023. We are pleased to welcome PCSB Bank to our family of banks and look forward to their contributions to our Company in the years to come. I would like to recognize the continued contributions of our colleagues to our Company in 2022."

BALANCE SHEET

Total assets at December 31, 2022 increased $526.8 million to $9.2 billion from $8.7 billion at September 30, 2022, and increased $619.9 million from $8.6 billion at December 31, 2021.

At December 31, 2022, total loans and leases were $7.6 billion, representing an increase of $223.1 million from September 30, 2022, and an increase of $489.9 million from December 31, 2021. The loan portfolio grew $223.1 million in the fourth quarter compared to growth of $129.4 million in the third quarter.

Total investment securities at December 31, 2022 decreased $18.9 million to $656.8 million from $675.7 million at September 30, 2022, and decreased $64.1 million from $720.9 million at December 31, 2021. Total cash and cash equivalents at December 31, 2022 increased $270.5 million to $383.0 million from $112.5 million at September 30, 2022, and increased $55.3 million from $327.7 million at December 31, 2021. As of December 31, 2022, total investment securities and total cash and cash equivalents represented 11.3 percent of total assets as compared to 9.1 percent and 12.2 percent as of September 30, 2022 and December 31, 2021, respectively.

Total deposits at December 31, 2022 decreased $213.5 million to $6.5 billion from $6.7 billion at September 30, 2022 and decreased $527.8 million from $7.0 billion at December 31, 2021.

Total borrowed funds at December 31, 2022 increased $673.9 million to $1.4 billion from $0.8 billion at September 30, 2022 and increased $1.0 billion from $0.4 billion at December 31, 2021.

The ratio of stockholders’ equity to total assets was 10.76 percent at December 31, 2022, as compared to 11.08 percent at September 30, 2022, and 11.57 percent at December 31, 2021. The ratio of tangible stockholders’ equity to tangible assets (non-GAAP) was 9.16 percent at December 31, 2022, as compared to 9.39 percent at September 30, 2022, and 9.87 percent at December 31, 2021. Tangible book value per common share (non-GAAP) increased $0.37 from $10.43 at September 30, 2022 to $10.80 at December 31, 2022, compared to $10.73 at December 31, 2021.

NET INTEREST INCOME

Net interest income increased $2.0 million to $80.0 million during the fourth quarter of 2022 from $78.0 million for the quarter ended September 30, 2022. The net interest margin increased 1 basis point to 3.81 percent for the three months ended December 31, 2022 from 3.80 percent for the three months ended September 30, 2022.

NON-INTEREST INCOME

Total non-interest income for the quarter ended December 31, 2022 increased $2.3 million to $9.1 million from $6.8 million for the quarter ended September 30, 2022. The increase was primarily driven by increases of $1.7 million in gain on sales of loans and leases, $0.5 million in other non-interest income, $0.3 million in gain on securities, net, $0.2 million in deposit fees, and $0.1 million in loan fees, partially offset by a decrease of $0.6 million in loan level derivative income, net.

PROVISION FOR CREDIT LOSSES

The Company recorded a provision for credit losses of $5.7 million for the quarter ended December 31, 2022, compared to $2.8 million for the quarter ended September 30, 2022. The $2.9 million increase in provision for credit losses, or 3 cents per share after tax, was due to strong growth in loans and commitments.

Total net charge-offs for the fourth quarter of 2022 were $0.3 million compared to total net recoveries of $0.2 million in the third quarter of 2022. The increase was primarily driven by an increase in net charge-offs on equipment financing loans of $0.5 million. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis increased to 2 basis points for the fourth quarter of 2022 from a negative 1 basis point for the third quarter of 2022.

The allowance for loan and lease losses represented 1.29 percent of total loans and leases at December 31, 2022, compared to 1.27 percent at September 30, 2022, and 1.38 percent at December 31, 2021.

ASSET QUALITY

The ratio of total nonperforming loans and leases to total loans and leases was 0.19 percent at December 31, 2022 as compared to 0.24 percent at September 30, 2022. Total nonaccrual loans and leases decreased $2.8 million to $14.9 million at December 31, 2022 from $17.7 million at September 30, 2022. The ratio of nonperforming assets to total assets was 0.17 percent at December 31, 2022 as compared to 0.21 percent at September 30, 2022. Total nonperforming assets decreased $3.0 million to $15.3 million at December 31, 2022 from $18.3 million at September 30, 2022.

NON-INTEREST EXPENSE

Non-interest expense for the quarter ended December 31, 2022 increased $2.2 million to $47.2 million from $45.0 million for the quarter ended September 30, 2022. The increase was primarily driven by increases of $1.2 million in compensation and employee benefits, $0.7 million in equipment and data processing expense, $0.5 million in professional services expense, $0.3 million in FDIC insurance expense, $0.2 million in other non-interest expense, and $0.1 million in occupancy expense, partially offset by a decrease of $0.4 million in merger and acquisition expense and a decrease of $0.3 million in advertising and marketing expense.

PROVISION FOR INCOME TAXES

The effective tax rate was 17.8 percent and 21.6 percent for the three and twelve months ended December 31, 2022 compared to 18.7 percent for the three months ended September 30, 2022 and 25.9 percent and 25.3 percent for the three and twelve months ended December 31, 2021.

RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

The annualized return on average assets decreased to 1.34 percent during the fourth quarter of 2022 compared to 1.40 percent for the third quarter of 2022; and was 1.27 percent for the year ended December 31, 2022, compared to 1.36 percent for the year ended December 31, 2021.

The annualized return on average tangible stockholders' equity decreased to 14.48 percent during the fourth quarter of 2022 compared to 14.72 percent for the third quarter of 2022; and was 13.35 percent for the year ended December 31, 2022 compared to 14.35 percent for the year ended December 31, 2021.

DIVIDEND DECLARED

The Company’s Board approved a dividend of $0.135 per share for the quarter ended December 31, 2022. The dividend will be paid on February 24, 2023 to stockholders of record on February 10, 2023.

PCSB ACQUISITION

On January 1, 2023, the Company completed its previously announced acquisition (the “merger”) of PCSB Financial Corporation (“PCSB”). Pursuant to the merger agreement, each share of PCSB common stock outstanding at the effective time of the merger was converted into the right to receive, 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 was converted to Company common stock. PCSB’s bank subsidiary, PCSB Bank, now operates as a separate subsidiary of the Company and has 15 banking offices throughout the Lower Hudson Valley of New York State.

CONFERENCE CALL

The Company will conduct a conference call/webcast at 1:30 PM Eastern Time on Thursday, January 26, 2023 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://events.q4inc.com/attendee/914981409. 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 718736). 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 929-458-6194 (internationally) and entering the passcode: 959089.

ABOUT BROOKLINE BANCORP, INC.

Brookline Bancorp, Inc., a bank holding company with approximately $11 billion in assets and branch locations in eastern Massachusetts, Rhode Island and the Lower Hudson Valley of New York State, is headquartered in Boston, Massachusetts and operates as the holding company for Brookline Bank, Bank Rhode Island, and PCSB Bank. The Company provides commercial and retail banking services and cash management and investment services to customers throughout Central New England and the Lower Hudson Valley of New York State. More information about Brookline Bancorp, Inc. and its banks can be found at the following websites: www.brooklinebank.com, www.bankri.com and www.pcsb.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 include, but are not limited to, the Company’s ability to achieve the synergies and value creation contemplated by the acquisition of PCSB; turbulence in the capital and debt markets; changes in interest rates; competitive pressures from other financial institutions; general economic conditions (including inflation) on a national basis or in the local markets in which the Company operates; changes in consumer behavior due to changing political, business and economic conditions, or legislative or regulatory initiatives; changes in the value of securities and other assets in the Company’s investment portfolio; increases in loan and lease default and charge-off rates; the adequacy of allowances for loan and lease losses; decreases in deposit levels that necessitate increases in borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity incidents, fraud, natural disasters, the ongoing COVID-19 pandemic and future pandemics; changes in regulation; the possibility that future credit losses may be higher than currently expected due to changes in economic assumptions and adverse economic developments; the risk that goodwill and intangibles recorded in the Company’s financial statements will become impaired; and changes in assumptions used in making such forward-looking statements. Forward-looking statements involve risks and uncertainties which are difficult to predict. The Company’s actual results could differ materially from those projected in the forward-looking statements as a result of, among others, the risks outlined in the Company’s Annual Report on Form 10-K, as updated by its Quarterly Reports on Form 10-Q and other filings submitted to the SEC. The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.

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 earnings per common share, operating return on average assets, operating return on average tangible assets, operating return on average stockholders' equity, operating return on average tangible stockholders' equity, 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															At and for the Twelve Months Ended
	December 31, 2022			September 30, 2022			June 30, 2022			March 31, 2022			December 31, 2021			December 31, 2022			December 31, 2021
	(Dollars In Thousands Except per Share Data)
Earnings Data:
Net interest income	$	80,030		$	78,026		$	71,867		$	69,848		$	71,461		$	299,771		$	282,373
Provision (credit) for credit losses		5,725			2,835			227			(160	)		751			8,627			(7,837	)
Non-interest income		9,056			6,834			6,928			5,529			10,699			28,347			26,989
Non-interest expense		47,225			44,959			44,871			42,487			42,909			179,542			162,608
Income before provision for income taxes		36,136			37,066			33,697			33,050			38,500			139,949			154,591
Net income		29,695			30,149			25,195			24,705			28,545			109,744			115,440
Performance Ratios:
Net interest margin (1)		3.81	%		3.80	%		3.56	%		3.49	%		3.52	%		3.67	%		3.49	%
Interest-rate spread (1)		3.35	%		3.58	%		3.41	%		3.31	%		3.42	%		3.40	%		3.32	%
Return on average assets (annualized)		1.34	%		1.40	%		1.18	%		1.16	%		1.35	%		1.27	%		1.36	%
Return on average tangible assets (annualized) (non-GAAP)		1.37	%		1.43	%		1.21	%		1.18	%		1.38	%		1.30	%		1.38	%
Return on average stockholders' equity (annualized)		12.09	%		12.29	%		10.32	%		9.91	%		11.56	%		11.15	%		11.93	%
Return on average tangible stockholders' equity (annualized) (non-GAAP)		14.48	%		14.72	%		12.39	%		11.84	%		13.84	%		13.35	%		14.35	%
Efficiency ratio (2)		53.01	%		52.98	%		56.95	%		56.37	%		52.23	%		54.72	%		52.56	%
Per Common Share Data:
Net income — Basic	$	0.39		$	0.39		$	0.33		$	0.32		$	0.37		$	1.42		$	1.48
Net income — Diluted		0.39			0.39			0.33			0.32			0.37			1.42			1.48
Cash dividends declared		0.135			0.135			0.130			0.130			0.125			0.530			0.490
Book value per share (end of period)		12.91			12.54			12.63			12.65			12.82			12.91			12.82
Tangible book value per common share (end of period) (non-GAAP)		10.80			10.43			10.51			10.56			10.73			10.80			10.73
Stock price (end of period)		14.15			11.65			13.31			15.82			16.19			14.15			16.19
Balance Sheet:
Total assets	$	9,222,553		$	8,695,708		$	8,514,230		$	8,633,736		$	8,602,622		$	9,222,553		$	8,602,622
Total loans and leases		7,644,388			7,421,304			7,291,912			7,223,130			7,154,457			7,644,388			7,154,457
Total deposits		6,522,146			6,735,605			6,894,457			7,094,378			7,049,906			6,522,146			7,049,906
Total stockholders’ equity		992,125			963,618			968,496			981,935			995,342			992,125			995,342
Asset Quality:
Nonperforming assets	$	15,302		$	18,312		$	21,259		$	26,506		$	33,177		$	15,302		$	33,177
Nonperforming assets as a percentage of total assets		0.17	%		0.21	%		0.25	%		0.31	%		0.39	%		0.17	%		0.39	%
Allowance for loan and lease losses	$	98,482		$	94,169		$	93,188		$	95,463		$	99,084		$	98,482		$	99,084
Allowance for loan and lease losses as a percentage of total loans and leases		1.29	%		1.27	%		1.28	%		1.32	%		1.38	%		1.29	%		1.38	%
Net loan and lease charge-offs (recoveries)	$	310		$	(179	)	$	1,242		$	1,947		$	2,124		$	3,320		$	5,734
Net loan and lease charge-offs as a percentage of average loans and leases (annualized)		0.02	%		(0.01	)%		0.07	%		0.11	%		0.12	%		0.05	%		0.08	%
Capital Ratios:
Stockholders’ equity to total assets		10.76	%		11.08	%		11.38	%		11.37	%		11.57	%		10.76	%		11.57	%
Tangible stockholders’ equity to tangible assets (non-GAAP)		9.16	%		9.39	%		9.65	%		9.67	%		9.87	%		9.16	%		9.87	%
(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, 2022		September 30, 2022		June 30, 2022		March 31, 2022		December 31, 2021
ASSETS	(In Thousands Except Share Data)
Cash and due from banks	$	191,767	$	65,638	$	50,429	$	89,032	$	66,265
Short-term investments	191,192		46,873		39,900		204,239		261,472
Total cash and cash equivalents	382,959		112,511		90,329		293,271		327,737
Investment securities available-for-sale	656,766		675,692		717,818		730,562		720,866
Total investment securities	656,766		675,692		717,818		730,562		720,866
Loans and leases:
Commercial real estate loans	4,404,148		4,269,512		4,225,754		4,235,325		4,103,040
Commercial loans and leases	2,016,499		1,933,645		1,860,182		1,800,383		1,887,136
Consumer loans	1,223,741		1,218,147		1,205,976		1,187,422		1,164,281
Total loans and leases	7,644,388		7,421,304		7,291,912		7,223,130		7,154,457
Allowance for loan and lease losses	(98,482)		(94,169)		(93,188)		(95,463)		(99,084)
Net loans and leases	7,545,906		7,327,135		7,198,724		7,127,667		7,055,373
Restricted equity securities	71,307		44,760		35,406		29,066		28,981
Premises and equipment, net of accumulated depreciation	71,391		69,912		69,557		69,365		70,359
Right-of-use asset operating leases	19,484		18,614		18,226		19,571		20,508
Deferred tax asset	52,237		56,894		50,736		46,886		38,987
Goodwill	160,427		160,427		160,427		160,427		160,427
Identified intangible assets, net of accumulated amortization	1,781		1,902		2,022		2,142		2,276
Other real estate owned and repossessed assets	408		591		507		990		718
Other assets	259,887		227,270		170,478		153,789		176,390
Total assets	$	9,222,553	$	8,695,708	$	8,514,230	$	8,633,736	$	8,602,622
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand checking accounts	$	1,802,518	$	1,848,562	$	1,845,365	$	1,903,331	$	1,888,462
NOW accounts	544,118		597,870		628,791		627,904		604,097
Savings accounts	762,271		824,789		894,926		967,183		915,804
Money market accounts	2,174,952		2,405,680		2,402,992		2,432,377		2,358,306
Certificate of deposit accounts	928,143		924,771		1,006,786		1,048,036		1,117,695
Brokered deposit accounts	310,144		133,933		115,597		115,547		165,542
Total deposits	6,522,146		6,735,605		6,894,457		7,094,378		7,049,906
Borrowed funds:
Advances from the FHLBB	1,237,823		557,895		307,967		201,236		147,907
Subordinated debentures and notes	84,044		84,008		83,970		83,934		83,897
Other borrowed funds	110,785		116,865		86,263		107,727		125,517
Total borrowed funds	1,432,652		758,768		478,200		392,897		357,321
Operating lease liabilities	19,484		18,614		18,226		19,571		20,508
Mortgagors’ escrow accounts	5,607		5,785		5,771		5,780		6,296
Reserve for unfunded credits	20,602		19,555		17,511		16,305		14,794
Accrued expenses and other liabilities	229,937		193,763		131,569		122,870		158,455
Total liabilities	8,230,428		7,732,090		7,545,734		7,651,801		7,607,280
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	736,074		735,119		738,544		737,658		736,826
Retained earnings, partially restricted	412,019		392,779		372,677		357,576		342,639
Accumulated other comprehensive income	(61,947)		(70,227)		(44,977)		(29,322)		(110)
Treasury stock, at cost;
7,731,445 shares, 7,730,945 shares, 7,995,888 shares, 7,037,464 shares, and 7,037,464 shares, respectively	(94,873)		(94,866)		(98,525)		(84,718)		(84,718)
Unallocated common stock held by the Employee Stock Ownership Plan;
0 shares, 4,833 shares, 11,442 shares, 18,051 shares, and 24,660 shares, respectively	0		(39)		(75)		(111)		(147)
Total stockholders' equity	992,125		963,618		968,496		981,935		995,342
Total liabilities and stockholders' equity	$	9,222,553	$	8,695,708	$	8,514,230	$	8,633,736	$	8,602,622

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
	Three Months Ended
	December 31, 2022		September 30, 2022			June 30, 2022	March 31, 2022			December 31, 2021
	(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases	$	98,386	$	84,375	$	74,287	$	71,721		$	73,560
Debt securities		3,497		3,337		3,249		2,996			2,972
Marketable and restricted equity securities		766		467		337		328			325
Short-term investments		754		464		156		66			88
Total interest and dividend income		103,403		88,643		78,029		75,111			76,945
Interest expense:
Deposits		14,185		7,354		4,282		3,771			4,055
Borrowed funds		9,188		3,263		1,880		1,492			1,429
Total interest expense		23,373		10,617		6,162		5,263			5,484
Net interest income		80,030		78,026		71,867		69,848			71,461
Provision (credit) for credit losses		5,725		2,835		227		(160	)		751
Net interest income after provision for credit losses		74,305		75,191		71,640		70,008			70,710
Non-interest income:
Deposit fees		2,916		2,759		2,744		2,500			2,653
Loan fees		446		349		666		747			448
Loan level derivative income, net		670		1,275		1,615		686			3,981
Gain (loss) on investment securities, net		321		—		—		—			(32	)
Gain on sales of loans and leases held-for-sale		2,612		889		291		344			1,933
Other		2,091		1,562		1,612		1,252			1,716
Total non-interest income		9,056		6,834		6,928		5,529			10,699
Non-interest expense:
Compensation and employee benefits		29,525		28,306		28,772		26,884			28,598
Occupancy		4,005		3,906		3,807		4,284			3,558
Equipment and data processing		5,758		5,066		4,931		5,078			4,576
Professional services		1,546		1,069		1,219		1,226			1,151
FDIC insurance		1,001		709		739		728			617
Advertising and marketing		1,052		1,337		1,319		1,272			880
Amortization of identified intangible assets		120		120		120		134			208
Merger and acquisition expense		641		1,073		535		—			—
Other		3,577		3,373		3,429		2,881			3,321
Total non-interest expense		47,225		44,959		44,871		42,487			42,909
Income before provision for income taxes		36,136		37,066		33,697		33,050			38,500
Provision for income taxes		6,441		6,917		8,502		8,345			9,955
Net income	$	29,695	$	30,149	$	25,195	$	24,705		$	28,545
Earnings per common share:
Basic	$	0.39	$	0.39	$	0.33	$	0.32		$	0.37
Diluted	$	0.39	$	0.39	$	0.33	$	0.32		$	0.37
Weighted average common shares outstanding during the period:
Basic		76,841,655		76,779,038		77,091,013		77,617,227			77,610,608
Diluted		77,065,076		77,007,971		77,419,288		77,926,822			77,864,097
Dividends paid per common share	$	0.135	$	0.130	$	0.130	$	0.125		$	0.125

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
	Twelve Months Ended December 31,
		2022		2021
	(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases	$	328,769	$	297,927
Debt securities		13,079		12,178
Marketable and restricted equity securities		1,898		1,172
Short-term investments		1,440		252
Total interest and dividend income		345,186		311,529
Interest expense:
Deposits		29,592		20,713
Borrowed funds		15,823		8,443
Total interest expense		45,415		29,156
Net interest income		299,771		282,373
Provision (credit) for credit losses		8,627		(7,837	)
Net interest income after provision for credit losses		291,144		290,210
Non-interest income:
Deposit fees		10,919		10,578
Loan fees		2,208		2,095
Loan level derivative income, net		4,246		4,680
Gain (loss) on investment securities, net		321		(38	)
Gain on sales of loans and leases held-for-sale		4,136		3,737
Other		6,517		5,937
Total non-interest income		28,347		26,989
Non-interest expense:
Compensation and employee benefits		113,487		106,786
Occupancy		16,002		14,961
Equipment and data processing		20,833		18,322
Professional services		5,060		4,694
FDIC insurance		3,177		2,980
Advertising and marketing		4,980		4,167
Amortization of identified intangible assets		494		876
Merger and acquisition expense		2,249		—
Other		13,260		9,822
Total non-interest expense		179,542		162,608
Income before provision for income taxes		139,949		154,591
Provision for income taxes		30,205		39,151
Net income	$	109,744	$	115,440
Earnings per common share:
Basic	$	1.42	$	1.48
Diluted	$	1.42	$	1.48
Weighted average common shares outstanding during the period:
Basic		77,079,278		77,974,851
Diluted		77,351,834		78,243,416
Dividends paid per common share	$	0.520	$	0.480

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Asset Quality Analysis (Unaudited)
	At and for the Three Months Ended
	December 31, 2022			September 30, 2022				June 30, 2022		March 31, 2022			December 31, 2021
	(Dollars in Thousands)
NONPERFORMING ASSETS:
Loans and leases accounted for on a nonaccrual basis:
Commercial real estate mortgage	$	607		$	3,136		$	6,470		$	8,313		$	10,848
Construction		707			—			—			—			—
Total commercial real estate loans		1,314			3,136			6,470			8,313			10,848
Commercial		464			618			892			1,366			2,318
Equipment financing		9,653			10,544			10,183			11,685			15,014
Condominium association		58			64			71			77			84
Total commercial loans and leases		10,175			11,226			11,146			13,128			17,416
Residential mortgage		2,680			2,741			2,412			3,394			3,909
Home equity		723			616			721			680			285
Other consumer		2			2			3			1			1
Total consumer loans		3,405			3,359			3,136			4,075			4,195
Total nonaccrual loans and leases		14,894			17,721			20,752			25,516			32,459
Other repossessed assets		408			591			507			990			718
Total nonperforming assets	$	15,302		$	18,312		$	21,259		$	26,506		$	33,177
Loans and leases past due greater than 90 days and still accruing	$	33		$	9,583		$	266		$	4		$	1
Troubled debt restructurings on accrual		16,385			9,728			11,524			10,858			12,580
Troubled debt restructurings on nonaccrual		3,527			4,449			5,097			5,189			6,709
Total troubled debt restructurings	$	19,912		$	14,177		$	16,621		$	16,047		$	19,289
Nonperforming loans and leases as a percentage of total loans and leases		0.19	%		0.24	%		0.28	%		0.35	%		0.45	%
Nonperforming assets as a percentage of total assets		0.17	%		0.21	%		0.25	%		0.31	%		0.39	%
PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:
Allowance for loan and lease losses at beginning of period	$	94,169		$	93,188		$	95,463		$	99,084		$	102,515
Charge-offs		(658	)		(598	)		(1,533	)		(2,344	)		(2,562	)
Recoveries		348			777			291			397			438
Net (charge-offs) recoveries		(310	)		179			(1,242	)		(1,947	)		(2,124	)
Provision (credit) for loan and lease losses excluding unfunded commitments *		4,623			802			(1,033	)		(1,674	)		(1,307	)
Allowance for loan and lease losses at end of period	$	98,482		$	94,169		$	93,188		$	95,463		$	99,084
Allowance for loan and lease losses as a percentage of total loans and leases		1.29	%		1.27	%		1.28	%		1.32	%		1.38	%
NET CHARGE-OFFS (RECOVERIES):