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Brookline Bancorp Announces Record Second Quarter Results

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Net Income of $31.6 million, EPS of $0.40

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

%

PDF available: http://ml.globenewswire.com/Resource/Download/3f779060-7808-4880-a3fd-8d7f736854e2