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Brookline Bancorp Announces Fourth Quarter Results

Net Income of $22.2 million, EPS of $0.28

Record 2019 Net Income of $87.7 million, EPS of $1.10

BOSTON, Jan. 29, 2020 (GLOBE NEWSWIRE) -- Brookline Bancorp, Inc. (BRKL) (the “Company”) today announced net income of $22.2 million, or $0.28 per basic and diluted share, for the fourth quarter of 2019, compared to $22.6 million, or $0.28 per basic and diluted share, for the third quarter of 2019, and $21.1 million, or $0.26 per basic and diluted share, for the fourth quarter of 2018.

For the year ended December 31, 2019, the Company reported net income of $87.7 million, or $1.10 per basic and diluted share. This compared to $83.1 million, or $1.04 per basic and diluted share, for the year ended December 31, 2018.

President and Chief Executive Officer Paul Perrault commented on the Company’s performance in 2019. “We had another successful year of solid growth and returns for our stockholders in 2019. For the second straight year Brookline Bancorp has achieved record earnings per share and net income. I would like to thank all of our employees for their hard work and dedication, demonstrating the values of Brookline Bancorp, as we position ourselves for continued success and growth in the new decade.”

On December 4, 2019, the Board of Directors (the “Board”) of the Company approved a stock repurchase program authorizing management to repurchase up to $10.0 million of the Company’s common stock over a period of twelve months commencing on January 1, 2020 and ending on December 31, 2020.

BALANCE SHEET

Total assets at December 31, 2019 decreased $21.6 million to $7.86 billion from $7.88 billion at September 30, 2019, and increased $464.0 million from $7.39 billion at December 31, 2018. At December 31, 2019, total loans and leases were $6.74 billion, representing an increase of $91.0 million from September 30, 2019, and an increase of $434.3 million from December 31, 2018.

Investment securities at December 31, 2019 increased $22.3 million to $589.4 million, as compared to $567.1 million at September 30, 2019, and decreased $32.4 million from $621.8 million at December 31, 2018. As of December 31, 2019, securities and cash and cash equivalents represented 8.5 percent of total assets as compared to 9.5 percent and 9.6 percent as of September 30, 2019 and December 31, 2018, respectively.

Total deposits at December 31, 2019 increased $100.7 million to $5.83 billion from $5.73 billion at September 30, 2019 and increased $376.0 million from $5.45 billion at December 31, 2018.

Total borrowed funds at December 31, 2019 decreased $83.7 million to $902.7 million from $986.4 million at September 30, 2019 and decreased $17.8 million from $920.5 million at December 31, 2018.

The ratio of stockholders’ equity to total assets was 12.04 percent at December 31, 2019, as compared to 11.83 percent at September 30, 2019, and 12.18 percent at December 31, 2018. The ratio of tangible stockholders’ equity to tangible assets was 10.15 percent at December 31, 2019, as compared to 9.94 percent at September 30, 2019, and 10.15 percent at December 31, 2018. Tangible book value per share increased $0.17 from $9.63 at September 30, 2019 to $9.80 at December 31, 2019, compared to $9.21 at December 31, 2018.

NET INTEREST INCOME

Net interest income increased $0.7 million to $63.9 million during the fourth quarter of 2019 from $63.2 million for the quarter ended September 30, 2019. The net interest margin decreased 2 basis points to 3.43 percent for the three months ended December 31, 2019 from 3.45 percent for the three months ended September 30, 2019.

NON-INTEREST INCOME

Non-interest income for the quarter ended December 31, 2019 decreased $0.1 million to $7.8 million from $7.9 million for the quarter ended September 30, 2019. The decrease was primarily driven by decreases of $0.2 million in revenue on sales of loans and leases and $0.3 million in other non-interest income; partially offset by increases of $0.2 million in loan level derivative income and $0.2 million in gain on securities.

PROVISION FOR CREDIT LOSSES

The Company recorded a provision for credit losses of $3.6 million for the quarter ended December 31, 2019, compared to $0.9 million for the quarter ended September 30, 2019.

Total net charge-offs for the fourth quarter of 2019 were $1.6 million compared to $0.4 million in the third quarter of 2019. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis increased to 10 basis points for the fourth quarter of 2019 from 2 basis points for the third quarter of 2019.

The allowance for loan and lease losses represented 0.91 percent of total loans and leases at December 31, 2019, compared to 0.89 percent at September 30, 2019, and 0.93 percent at December 31, 2018. The allowance for loan and lease losses related to originated loans and leases represented 0.91 percent of originated loans and leases at December 31, 2019, compared to 0.90 percent at September 30, 2019, and 0.96 percent at December 31, 2018.

NON-INTEREST EXPENSE

Non-interest expense for the quarter ended December 31, 2019 decreased $1.4 million to $38.8 million from $40.2 million for the quarter ended September 30, 2019. The decrease was primarily driven by decreases of $0.9 million in compensation and employee benefits, $0.1 million in equipment and data processing and $1.1 million in merger and acquisition expense, partially offset by an increase of $0.7 million in other non-interest expense.

PROVISION FOR INCOME TAXES

The effective tax rate was 24.2 percent and 24.4 percent for the three and twelve months ended December 31, 2019, respectively.

RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

The annualized return on average assets decreased to 1.13 percent during the fourth quarter of 2019 compared to 1.17 percent for the third quarter of 2019; and was 1.15 percent for the year ended December 31, 2019, compared to 1.15 percent for the year ended December 31, 2018.

The annualized return on average tangible stockholders' equity decreased to 11.42 percent during the fourth quarter of 2019 compared to 11.85 percent for the third quarter of 2019; and was 11.67 percent for the year ended December 31, 2019 compared to 11.70 percent for the year ended December 31, 2018.

ASSET QUALITY

The ratio of total nonperforming loans and leases to total loans and leases was 0.29 percent at December 31, 2019 as compared to 0.33 percent at September 30, 2019. Nonperforming loans and leases decreased $2.1 million to $19.5 million at December 31, 2019 from $21.6 million at September 30, 2019. The ratio of nonperforming assets to total assets was 0.28 percent at December 31, 2019 as compared to 0.30 percent at September 30, 2019. Nonperforming assets decreased $1.7 million to $22.1 million at December 31, 2019 from $23.8 million at September 30, 2019.

DIVIDEND DECLARED

The Company’s Board approved a dividend of $0.115 per share for the quarter ended December 31, 2019. The dividend will be paid on February 28, 2020 to stockholders of record on February 14, 2020.

CONFERENCE CALL

The Company will conduct a conference call/webcast at 1:30 PM Eastern Daylight Time on Thursday, January 30, 2020 to discuss the results for the quarter, business highlights and outlook. The call can be accessed by dialing 877-504-4120 (United States) or 412-902-6650 (internationally). A recorded playback of the call will be available for one week following the call at 877-344-7529 (United States) or 412-317-0088 (internationally). The passcode for the playback is 10137889. The call will be available live and in a recorded version on the Company’s website under “Investor Relations” at www.brooklinebancorp.com.

ABOUT BROOKLINE BANCORP, INC.

Brookline Bancorp, Inc., a bank holding company with $7.9 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, Bank Rhode Island, and First Ipswich Bank (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, www.bankri.com, and www.firstipswich.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. Forward-looking statements involve risks and uncertainties. The Company’s actual results could differ materially from those projected in the forward-looking statements as a result of, among others, the risks outlined in the Company’s Annual Report on Form 10-K, as updated by its Quarterly Reports on Form 10-Q and other filings submitted to the Securities and Exchange Commission ("SEC"). The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.

BASIS OF PRESENTATION

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

NON-GAAP FINANCIAL MEASURES

The Company uses certain non-GAAP financial measures, such as operating earnings, operating return on average assets, operating return on average tangible assets, operating return on average stockholders' equity, operating return on average tangible stockholders' equity, the allowance for loan and lease losses related to originated loans and leases as a percentage of originated loans and leases, tangible book value per common share, tangible stockholders’ equity to tangible assets, return on average tangible assets and return on average tangible stockholders' equity. 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.

Contact:

Carl M. Carlson

Brookline Bancorp, Inc.

Chief Financial Officer

(617) 425-5331

ccarlson@brkl.com



BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Selected Financial Highlights (Unaudited)

At and for the Three Months Ended

At and for the Twelve Months Ended

December 31, 2019

September 30, 2019

June 30, 2019

March 31, 2019

December 31, 2018

December 31, 2019

December 31, 2018

(Dollars In Thousands Except per Share Data)

Earnings Data:

Net interest income

$

63,931

$

63,236

$

63,134

$

62,999

$

63,159

$

253,300

$

247,699

Provision for credit losses

3,602

871

3,757

1,353

123

9,583

4,951

Non-interest income

7,756

7,929

7,478

6,630

6,461

29,793

25,224

Non-interest expense

38,815

40,191

39,604

38,871

40,282

157,481

155,232

Income before provision for income taxes

29,270

30,103

27,251

29,405

29,215

116,029

112,740

Net income attributable to Brookline Bancorp, Inc.

22,183

22,596

20,471

22,467

21,138

87,717

83,062

Performance Ratios:

Net interest margin (1)

3.43

%

3.45

%

3.55

%

3.64

%

3.58

%

3.51

%

3.61

%

Interest-rate spread (1)

3.05

%

3.06

%

3.13

%

3.18

%

3.25

%

3.10

%

3.32

%

Return on average assets (annualized)

1.13

%

1.17

%

1.08

%

1.21

%

1.15

%

1.15

%

1.15

%

Return on average tangible assets (annualized) (non-GAAP)

1.15

%

1.19

%

1.11

%

1.24

%

1.17

%

1.17

%

1.18

%

Return on average stockholders' equity (annualized)

9.42

%

9.74

%

8.98

%

10.14

%

9.40

%

9.56

%

9.51

%

Return on average tangible stockholders' equity (annualized) (non-GAAP)

11.42

%

11.85

%

10.98

%

12.48

%

11.54

%

11.67

%

11.70

%

Efficiency ratio (2)

54.15

%

56.48

%

56.09

%

55.83

%

57.86

%

55.63

%

56.88

%

Per Common Share Data:

Net income — Basic

$

0.28

$

0.28

$

0.26

$

0.28

$

0.26

$

1.10

$

1.04

Net income — Diluted

0.28

0.28

0.26

0.28

0.26

1.10

1.04

Cash dividends declared

0.115

0.115

0.110

0.110

0.105

0.450

0.395

Book value per share (end of period)

11.87

11.70

11.53

11.30

11.30

11.87

11.30

Tangible book value per share (end of period) (non-GAAP)

9.80

9.63

9.45

9.22

9.21

9.80

9.21

Stock price (end of period)

16.46

14.73

15.38

14.40

13.82

16.46

13.82

Balance Sheet:

Total assets

$

7,856,853

$

7,878,436

$

7,636,980

$

7,519,130

$

7,392,805

$

7,856,853

$

7,392,805

Total loans and leases

6,737,816

6,646,821

6,505,329

6,388,197

6,303,516

6,737,816

6,303,516

Total deposits

5,830,072

5,729,339

5,622,493

5,620,633

5,454,044

5,830,072

5,454,044

Brookline Bancorp, Inc. stockholders’ equity

945,606

932,311

918,468

900,572

900,140

945,606

900,140

Asset Quality:

Nonperforming assets

$

22,092

$

23,760

$

23,267

$

26,721

$

28,116

$

22,092

$

28,116

Nonperforming assets as a percentage of total assets

0.28

%

0.30

%

0.30

%

0.36

%

0.38

%

0.28

%

0.38

%

Allowance for loan and lease losses

$

61,082

$

59,135

$

58,635

$

58,041

$

58,692

$

61,082

$

58,692

Allowance for loan and lease losses as a percentage of total loans and leases

0.91

%

0.89

%

0.90

%

0.91

%

0.93

%

0.91

%

0.93

%

Net loan and lease charge-offs

$

1,622

$

366

$

3,082

$

2,101

$

1,252

$

7,171

$

4,651

Net loan and lease charge-offs as a percentage of average loans and leases (annualized)

0.10

%

0.02

%

0.19

%

0.13

%

0.08

%

0.11

%

0.08

%

Capital Ratios:

Stockholders’ equity to total assets

12.04

%

11.83

%

12.03

%

11.98

%

12.18

%

12.04

%

12.18

%

Tangible stockholders’ equity to tangible assets (non-GAAP)

10.15

%

9.94

%

10.08

%

9.99

%

10.15

%

10.15

%

10.15

%

(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, 2019

September 30, 2019

June 30, 2019

March 31, 2019

December 31, 2018

ASSETS

(In Thousands Except Share Data)

Cash and due from banks

$

33,589

$

93,841

$

46,532

$

51,276

$

47,542

Short-term investments

44,201

84,689

46,264

61,063

42,042

Total cash and cash equivalents

77,790

178,530

92,796

112,339

89,584

Investment securities available-for-sale

498,995

467,339

482,497

489,020

502,793

Investment securities held-to-maturity

86,780

95,163

103,572

113,694

114,776

Investment securities trading

3,581

4,581

4,698

4,341

4,207

Total investment securities

589,356

567,083

590,767

607,055

621,776

Loans and leases held-for-sale

1,575

869

3,247

Loans and leases:

Commercial real estate loans:

Commercial real estate mortgage

2,491,011

2,441,091

2,421,104

2,355,507

2,330,725

Multi-family mortgage

932,163

919,234

877,330

855,703

847,711

Construction

246,048

229,126

195,120

199,258

173,300

Total commercial real estate loans

3,669,222

3,589,451

3,493,554

3,410,468

3,351,736

Commercial loans and leases:

Commercial

729,502

766,883

763,145

741,577

736,418

Equipment financing

1,052,408

1,029,280

1,015,205

995,863

982,089

Condominium association

56,838

54,225

47,986

49,142

50,451

Total commercial loans and leases

1,838,748

1,850,388

1,826,336

1,786,582

1,768,958

Consumer loans:

Residential mortgage

814,245

792,733

769,983

775,578

782,968

Home equity

376,819

375,257

374,746

376,126

376,484

Other consumer

38,782

38,992

40,710

39,443

23,370

Total consumer loans

1,229,846

1,206,982

1,185,439

1,191,147

1,182,822

Total loans and leases

6,737,816

6,646,821

6,505,329

6,388,197

6,303,516

Allowance for loan and lease losses

(61,082

)

(59,135

)

(58,635

)

(58,041

)

(58,692

)

Net loans and leases

6,676,734

6,587,686

6,446,694

6,330,156

6,244,824

Restricted equity securities

53,818

57,896

55,270

54,192

61,751

Premises and equipment, net of accumulated depreciation

74,350

75,229

75,373

75,520

76,382

Right-of-use asset operating leases

24,876

26,216

25,928

26,205

Deferred tax asset ("DTA")

25,017

25,204

25,629

27,084

21,495

Goodwill

160,427

160,427

160,427

160,427

160,427

Identified intangible assets, net of accumulated amortization

4,423

4,843

5,264

5,684

6,086

Other real estate owned and repossessed assets

2,631

2,132

1,966

3,912

4,019

Other assets

167,431

193,190

155,291

115,687

103,214

Total assets

$

7,856,853

$

7,878,436

$

7,636,980

$

7,519,130

$

7,392,805

LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits:

Non-interest-bearing deposits:

Demand checking accounts

$

1,141,578

$

1,106,684

$

1,042,854

$

1,011,031

$

1,033,551

Interest-bearing deposits:

NOW accounts

371,380

340,321

340,082

369,896

336,317

Savings accounts

613,467

604,481

585,322

625,770

619,961

Money market accounts

1,682,005

1,666,231

1,669,782

1,706,708

1,675,050

Certificate of deposit accounts

2,021,642

2,011,622

1,984,453

1,907,228

1,789,165

Total interest-bearing deposits

4,688,494

4,622,655

4,579,639

4,609,602

4,420,493

Total deposits

5,830,072

5,729,339

5,622,493

5,620,633

5,454,044

Borrowed funds:

Advances from the FHLBB

758,469

854,481

791,559

730,018

784,375

Subordinated debentures and notes

83,591

83,551

83,512

83,472

83,433

Other borrowed funds

60,689

48,373

55,693

52,515

$

58,041

$

58,692

Allowance for loan and lease losses as a percentage of total loans and leases

0.91

%

0.89

%

0.90

%

0.91

%

0.93

%

Allowance for loan and lease losses related to originated loans and leases as a percentage of originated loans and leases (non-GAAP)

0.91

%

0.90

%

0.92

%

0.93

%

0.96

%

NET CHARGE-OFFS:

Commercial real estate loans

$

$

$

$

$

Commercial loans and leases

1,589

403

3,107

2,124

883

Consumer loans

33

(37

)

(25

)

(23

)

369

Total net charge-offs

$

1,622

$

366

$

3,082

$

2,101

$

1,252

Net loan and lease charge-offs as a percentage of average loans and leases (annualized)

0.10

%

0.02

%

0.19

%

0.13

%

0.08

%



BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Average Yields / Costs (Unaudited)

Three Months Ended

December 31, 2019

September 30, 2019

December 31, 2018

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)

$

567,037

$

2,957

2.09

%

$

573,389

$

3,027

2.11

%

$

637,803

$

3,542

2.22

%

Marketable and restricted equity securities (2)

59,763

823

5.51

%

59,638

885

5.94

%

69,374

1,017

5.87

%

Short-term investments

93,997

418

1.78

%

70,707

487

2.76

%

50,728

256

2.02

%

Total investments

720,797

4,198

2.33

%

703,734

4,399

2.50

%

757,905

4,815

2.54

%

Loans and Leases:

Commercial real estate loans (3)

3,605,169

40,976

4.45

%

3,539,485

41,724

4.61

%

3,310,185

39,014

4.61

%

Commercial loans (3)

826,116

10,066

4.78

%

838,092

10,291

4.81

%

825,582

10,007

4.75

%

Equipment financing (3)

1,037,431

19,271

7.43

%

1,019,179

18,519

7.27

%

959,706

17,145

7.15

%

Residential mortgage loans (3)

804,672

8,402

4.18

%

776,482

8,215

4.23

%

763,775

7,840

4.11

%

Other consumer loans (3)

417,950

4,680

4.43

%

415,082

4,917

4.69

%

404,747

4,883

4.78

%

Total loans and leases

6,691,338

83,395

4.99

%

6,588,320

83,666

5.08

%

6,263,995

78,889

5.04

%

Total interest-earning assets

7,412,135

87,593

4.73

%

7,292,054

88,065

4.83

%

7,021,900

83,704

4.77

%

Allowance for loan and lease losses

(59,202

)

(59,386

)

(59,806

)

Non-interest-earning assets

507,660

513,824

420,837

Total assets

$

7,860,593

$

7,746,492

$

7,382,931

Liabilities and Stockholders' Equity:

Interest-bearing liabilities:

Deposits:

NOW accounts

$

344,036

115

0.13

%

$

335,091

129

0.15

%

$

333,592

88

0.10

%

Savings accounts

604,276

746

0.49

%

600,609

820

0.54

%

616,766

526

0.34

%

Money market accounts

1,685,885

4,947

1.16

%

1,683,548

5,413

1.28

%

1,647,346

4,914

1.18

%

Certificates of deposit

2,026,753

11,847

2.32

%

2,000,941

11,938

2.37

%

1,701,254

8,216

1.92

%

Total interest-bearing deposits

4,660,950

17,655

1.50

%

4,620,189

18,300

1.57

%

4,298,958

13,744

1.27

%

Borrowings:

Advances from the FHLBB

753,460

4,407

2.29

%

759,738

4,859

2.50

%

903,342

5,227

2.26

%

Subordinated debentures and notes

83,570

1,293

6.19

%

83,530

1,300

6.22

%

83,410

1,302

6.24

%

Other borrowed funds

64,543

164

1.01

%

79,620

211

1.05

%

50,829

112

0.87

%

Total borrowings

901,573

5,864

2.55

%

922,888

6,370

2.70

%

1,037,581

6,641

2.50

%

Total interest-bearing liabilities

5,562,523

23,519

1.68

%

5,543,077

24,670

1.77

%

5,336,539

20,385

1.52

%

Non-interest-bearing liabilities:

Demand checking accounts

1,142,600

1,096,788

1,028,086

Other non-interest-bearing liabilities

213,579

178,564

109,261

Total liabilities

6,918,702

6,818,429

6,473,886

Brookline Bancorp, Inc. stockholders’ equity

941,891

928,063

899,244

Noncontrolling interest in subsidiary

9,801

Total liabilities and equity

$

7,860,593

$

7,746,492

$

7,382,931

Net interest income (tax-equivalent basis) /Interest-rate spread (4)

64,074

3.05

%

63,395

3.06

%

63,319

3.25

%

Less adjustment of tax-exempt income

143

159

160

Net interest income

$

63,931

$

63,236

$

63,159

Net interest margin (5)

3.43

%

3.45

%

3.58

%

(1) Tax-exempt income on debt securities, equity securities and revenue bonds included in commercial real estate loans is included on a tax-equivalent basis.

(2) Average balances include unrealized gains (losses) on investment securities. Dividend payments may not be consistent and average yield on equity securities may vary from month to month.

(3) Loans on nonaccrual status are included in the average balances.

(4) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.

(5) Net interest margin represents net interest income (tax-equivalent basis) divided by average interest-earning assets.



BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Average Yields / Costs (Unaudited)

Twelve Months Ended

December 31, 2019

December 31, 2018

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)

$

585,360

$

12,483

2.13

%

$

653,652

$

14,174

2.17

%

Marketable and restricted equity securities (2)

59,751

3,516

5.88

%

67,640

3,973

5.88

%

Short-term investments

71,090

1,523

2.14

%

38,437

700

1.82

%

Total investments

716,201

17,522

2.45

%

759,729

18,847

2.48

%

Loans and Leases:

Commercial real estate loans (3)

3,492,848

164,082

4.63

%

3,235,101

146,147

4.46

%

Commercial loans (3)

817,347

39,839

4.81

%

813,815

37,616

4.56

%

Equipment financing (3)

1,012,698

74,066

7.31

%

919,047

63,968

6.96

%

Residential mortgage loans (3)

783,556

32,926

4.20

%

746,372

29,773

3.99

%

Other consumer loans (3)

414,730

19,835

4.78

%

401,425

18,216

4.53

%

Total loans and leases

6,521,179

330,748

5.07

%

6,115,760

295,720

4.84

%

Total interest-earning assets

7,237,380

348,270

4.81

%

6,875,489

314,567

4.58

%

Allowance for loan and lease losses

(58,871

)

(59,154

)

Non-interest-earning assets

476,125

406,746

Total assets

$

7,654,634

$

7,223,081

Liabilities and Stockholders' Equity:

Interest-bearing liabilities:

Deposits:

NOW accounts

$

339,275

436

0.13

%

$

340,194

283

0.08

%

Savings accounts

608,022

2,900

0.48

%

618,674

1,804

0.29

%

Money market accounts

1,682,676

21,206

1.26

%

1,715,057

15,369

0.90

%

Certificates of deposit

1,956,350

45,073

2.30

%

1,497,473

24,522

1.64

%

Total interest-bearing deposits

4,586,323

69,615

1.52

%

4,171,398

41,978

1.01

%

Borrowings:

Advances from the FHLBB

757,598

18,701

2.43

%

946,017

18,650

1.94

%

Subordinated debentures and notes

83,511

5,206

6.23

%

83,350

5,181

6.22

%

Other borrowed funds

79,276

804

1.01

%

46,079

385

0.83

%

Total borrowings

920,385

24,711

2.65

%

1,075,446

24,216

2.22

%

Total interest-bearing liabilities

5,506,708

94,326

1.71

%

5,246,844

66,194

1.26

%

Non-interest-bearing liabilities:

Demand checking accounts

1,070,859

997,179

Other non-interest-bearing liabilities

159,690

96,560

Total liabilities

6,737,257

6,340,583

Brookline Bancorp, Inc. stockholders’ equity

917,286

873,388

Noncontrolling interest in subsidiary

91

9,110

Total liabilities and equity

$

7,654,634

$

7,223,081

Net interest income (tax-equivalent basis) /Interest-rate spread (4)

253,944

3.10

%

248,373

3.32

%

Less adjustment of tax-exempt income

644

674

Net interest income

$

253,300

$

247,699

Net interest margin (5)

3.51

%

3.61

%

(1) Tax-exempt income on debt securities, equity securities and revenue bonds included in commercial real estate loans is included on a tax-equivalent basis.

(2) Average balances include unrealized gains (losses) on investment securities. Dividend payments may not be consistent and average yield on equity securities may vary from month to month.

(3) Loans on nonaccrual status are included in the average balances.

(4) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.

(5) Net interest margin represents net interest income (tax-equivalent basis) divided by average interest-earning assets.



BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Non-GAAP Financial Information (Unaudited)

At and for the Three Months Ended
December 31,

At and for the Twelve Months Ended December 31,

2019

2018

2019

2018

Reconciliation Table - Non-GAAP Financial Information

(Dollars in Thousands Except Share Data)

Net income attributable to Brookline Bancorp, Inc.

$

22,183

$

21,138

$

87,717

$

83,062

Less:

Security gains (loss) (after-tax)

101

(525

)

384

174

Add:

Merger and restructuring-related expenses (after-tax)

399

851

2,908

Operating earnings

$

22,082

$

22,062

$

88,184

$

85,796

Operating earnings per common share:

Basic

$

0.28

$

0.27

$

1.11

$

1.08

Diluted

0.28

0.27

1.10

1.07

Weighted average common shares outstanding during the period:

Basic

79,682,724

80,258,456

79,679,781

79,669,660

Diluted

79,845,447

80,407,525

79,856,921

79,909,243

Return on average assets *

1.13

%

1.15

%

1.15

%

1.15

%

Less:

Security gains (loss) (after-tax) *

0.01

%

(0.03

)%

0.01

%

%

Add:

Merger and restructuring-related expenses (after-tax) *

%

0.02

%

0.01

%

0.04

%

Operating return on average assets *

1.12

%

1.20

%

1.15

%

1.19

%

Return on average tangible assets *

1.15

%

1.17

%

1.17

%

1.18

%

Less:

Security gains (loss) (after-tax) *

0.01

%

(0.03

)%

0.01

%

%

Add:

Merger and restructuring-related expenses (after-tax) *

%

0.02

%

0.01

%

0.04

%

Operating return on average tangible assets *

1.14

%

1.22

%

1.17

%

1.22

%

Return on average stockholders' equity *

9.42

%

9.40

%

9.56

%

9.51

%

Less:

Security gains (loss) (after-tax) *

0.04

%

(0.23

)%

0.04

%

0.02

%

Add:

Merger and restructuring-related expenses (after-tax) *

%

0.18

%

0.09

%

0.33

%

Operating return on average stockholders' equity *

9.38

%

9.81

%

9.61

%

9.82

%

Return on average tangible stockholders' equity *

11.42

%

11.54

%

11.67

%

11.70

%

Less:

Security gains (loss) (after-tax) *

0.05

%

(0.29

)%

0.05

%

0.02

%

Add:

Merger and restructuring-related expenses (after-tax) *

%

0.22

%

0.11

%

0.41

%

Operating return on average tangible stockholders' equity *

11.37

%

12.05

%

11.73

%

12.09

%

* Ratios at and for the three months ended are annualized.

(Continued)

BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Non-GAAP Financial Information (Unaudited)

At and for the Three Months Ended

At and for the Twelve Months Ended

December 31, 2019

September 30, 2019

June 30, 2019

March 31, 2019

December 31, 2018

December 31, 2019

December 31, 2018

(Dollars in Thousands)

Net income, as reported

$

22,183

$

22,596

$

20,471

$

22,467

$

21,138

$

87,717

$

83,062

Average total assets

$

7,860,593

$

7,746,492

$

7,571,396

$

7,434,038

$

7,382,931

$

7,654,634

$

7,223,081

Less: Average goodwill and average identified intangible assets, net

165,071

165,493

165,914

166,327

166,777

165,697

163,712

Average tangible assets

$

7,695,522

$

7,580,999

$

7,405,482

$

7,267,711

$

7,216,154

$

7,488,937

$

7,059,369

Return on average tangible assets (annualized)

1.15

%

1.19

%

1.11

%

1.24

%

1.17

%

1.17

%

1.18

%

Average total stockholders’ equity

$

941,891

$

928,063

$

911,824

$

886,639

$

899,244

$

917,286

$

873,388

Less: Average goodwill and average identified intangible assets, net

165,071

165,493

165,914

166,327

166,777

165,697

163,712

Average tangible stockholders’ equity

$

776,820

$

762,570

$

745,910

$

720,312

$

732,467

$

751,589

$

709,676

Return on average tangible stockholders’ equity (annualized)

11.42

%

11.85

%

10.98

%

12.48

%

11.54

%

11.67

%

11.70

%

Brookline Bancorp, Inc. stockholders’ equity

$

945,606

$

932,311

$

918,468

$

900,572

$

900,140

$

945,606

$

900,140

Less:

Goodwill

160,427

160,427

160,427

160,427

160,427

160,427

160,427

Identified intangible assets, net

4,423

4,843

5,264

5,684

6,086

4,423

6,086

Tangible stockholders' equity

$

780,756

$

767,041

$

752,777

$

734,461

$

733,627

$

780,756

$

733,627

Total assets

$

7,856,853

$

7,878,436

$

7,636,980

$

7,519,130

$

7,392,805

$

7,856,853

$

7,392,805

Less:

Goodwill

160,427

160,427

160,427

160,427

160,427

160,427

160,427

Identified intangible assets, net

4,423

4,843

5,264

5,684

6,086

4,423

6,086

Tangible assets

$

7,692,003

$

7,713,166

$

7,471,289

$

7,353,019

$

7,226,292

$

7,692,003

$

7,226,292

Tangible stockholders’ equity to tangible assets

10.15

%

9.94

%

10.08

%

9.99

%

10.15

%

10.15

%

10.15

%

Tangible stockholders' equity

$

780,756

$

767,041

$

752,777

$

734,461

$

733,627

$

780,756

$

733,627

Number of common shares issued

85,177,172

85,177,172

85,177,172

85,177,172

85,177,172

85,177,172

85,177,172

Less:

Treasury shares

5,003,127

5,003,127

5,025,764

5,020,025

5,020,025

5,003,127

5,020,025

Unallocated ESOP shares

79,548

92,337

98,208

104,079

109,950

79,548

109,950

Unvested restricted shares

406,450

407,784

377,122

390,636

393,636

406,450

393,636

Number of common shares outstanding

79,688,047

79,673,924

79,676,078

79,662,432

79,653,561

79,688,047

79,653,561

Tangible book value per common share

$

9.80

$

9.63

$

9.45

$

9.22

$

9.21

$

9.80

$

9.21

Allowance for loan and lease losses

$

61,082

$

59,135

$

58,635

$

58,041

$

58,692

$

61,082

$

58,692

Less:

Allowance for acquired loans and leases losses

2,215

1,955

1,857

1,795

1,814

2,215

1,814

Allowance for originated loan and lease losses

$

58,867

$

57,180

$

56,778

$

56,246

$

56,878

$

58,867

$

56,878

Total loans and leases

$

6,737,816

$

6,646,821

$

6,505,329

$

6,388,197

$

6,303,516

$

6,737,816

$

6,303,516

Less:

Total acquired loans and leases

288,129

310,745

337,420

370,177

394,407

288,129

394,407

Total originated loans and leases

$

6,449,687

$

6,336,076

$

6,167,909

$

6,018,020

$

5,909,109

$

6,449,687

$

5,909,109

Allowance for loan and lease losses related to originated loans and leases as a percentage of originated loans and leases

0.91

%

0.90

%

0.92

%

0.93

%

0.96

%

0.91

%

0.96

%