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. (NASDAQ: 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   52,734 
Total borrowed funds 902,749   986,405   930,764   866,005   920,542 
Operating lease liabilities 24,876   26,216   25,928   26,205    
Mortgagors’ escrow accounts 7,232   7,072   6,823   7,517   7,426 
Accrued expenses and other liabilities 146,318   197,093   132,504   98,198   100,174 
Total liabilities 6,911,247   6,946,125   6,718,512   6,618,558   6,482,186 
Stockholders' equity:         
Brookline Bancorp, Inc. 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 736,601   735,928   737,584   736,872   755,629 
Retained earnings, partially restricted 265,376   252,435   238,625   226,929   212,838 
Accumulated other comprehensive income (loss) 2,283   2,775   1,141   (4,393)  (9,460)
Treasury stock, at cost;         
5,003,127 shares, 5,003,127 shares, 5,025,764 shares, 5,020,025 shares, and 5,020,025 shares, respectively (59,073)  (59,176)  (59,199)  (59,121)  (59,120)
Unallocated common stock held by the Employee Stock Ownership Plan;         
79,548 shares, 92,337 shares, 98,208 shares,104,079 shares, and 109,950 shares, respectively (433)  (503)  (535)  (567)  (599)
Total Brookline Bancorp, Inc. stockholders’ equity 945,606   932,311   918,468   900,572   900,140 
Noncontrolling interest in subsidiary             10,479 
Total stockholders' equity 945,606   932,311   918,468   900,572   910,619 
Total liabilities and stockholders' equity$7,856,853  $7,878,436  $7,636,980  $7,519,130  $7,392,805 
          



BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
 Three Months Ended
 December 31, 2019 September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018
 (In Thousands Except Share Data)
Interest and dividend income:         
Loans and leases$83,309 $83,566  $82,798 $80,672 $78,791 
Debt securities 2,910  2,977   3,158  3,236  3,489 
Marketable and restricted equity securities 813  876   877  911  1,008 
Short-term investments 418  487   351  267  256 
Total interest and dividend income 87,450  87,906   87,184  85,086  83,544 
Interest expense:         
Deposits 17,655  18,300   17,712  15,948  13,744 
Borrowed funds 5,864  6,370   6,338  6,139  6,641 
Total interest expense 23,519  24,670   24,050  22,087  20,385 
Net interest income 63,931  63,236   63,134  62,999  63,159 
Provision for credit losses 3,602  871   3,757  1,353  123 
Net interest income after provision for credit losses 60,329  62,365   59,377  61,646  63,036 
Non-interest income:         
Deposit fees 2,710  2,710   2,680  2,523  2,669 
Loan fees 567  719   398  413  390 
Loan level derivative income, net 2,494  2,251   1,772  1,745  1,811 
Gain (loss) on investment securities, net 133  (116)  357  134  (692)
Gain on sales of loans and leases held-for-sale 309  550   561  289  327 
Other 1,543  1,815   1,710  1,526  1,956 
Total non-interest income 7,756  7,929   7,478  6,630  6,461 
Non-interest expense:         
Compensation and employee benefits 23,987  24,871   23,953  23,743  24,413 
Occupancy 4,102  3,895   3,752  3,947  3,240 
Equipment and data processing 4,601  4,749   4,641  4,661  4,626 
Professional services 1,120  1,083   1,087  1,076  1,130 
FDIC insurance 53  54   745  593  727 
Advertising and marketing 828  1,035   1,112  1,069  773 
Amortization of identified intangible assets 420  421   420  402  537 
Merger and restructuring expense   1,125       526 
Other 3,704  2,958   3,894  3,380  4,310 
Total non-interest expense 38,815  40,191   39,604  38,871  40,282 
Income before provision for income taxes 29,270  30,103   27,251  29,405  29,215 
Provision for income taxes 7,087  7,507   6,780  6,895  7,055 
Net income before noncontrolling interest in subsidiary 22,183  22,596   20,471  22,510  22,160 
Less net income attributable to noncontrolling interest in subsidiary        43  1,022 
Net income attributable to Brookline Bancorp, Inc.$22,183 $22,596  $20,471 $22,467 $21,138 
Earnings per common share:         
Basic$0.28 $0.28  $0.26 $0.28 $0.26 
Diluted$0.28 $0.28  $0.26 $0.28 $0.26 
Weighted average common shares outstanding during the period:        
Basic 79,682,724  79,700,403   79,669,922  79,658,583  80,258,456 
Diluted 79,845,447  79,883,510   79,886,292  79,843,578  80,407,525 
Dividends paid per common share$0.115 $0.110  $0.110 $0.105 $0.105 
          



BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
  
 Twelve Months Ended December 31,
  2019  2018
 (In Thousands Except Share Data)
Interest and dividend income:   
Loans and leases$330,345 $295,269
Debt securities 12,281  13,960
Marketable and restricted equity securities 3,477  3,964
Short-term investments 1,523  700
Total interest and dividend income 347,626  313,893
Interest expense:   
Deposits 69,615  41,978
Borrowed funds 24,711  24,216
Total interest expense 94,326  66,194
Net interest income 253,300  247,699
Provision for credit losses 9,583  4,951
Net interest income after provision for credit losses 243,717  242,748
Non-interest income:   
Deposit fees 10,623  10,400
Loan fees 2,097  1,427
Loan level derivative income, net 8,262  5,440
Gain on investment securities, net 508  227
Gain on sales of loans and leases held-for-sale 1,709  1,883
Other 6,594  5,847
Total non-interest income 29,793  25,224
Non-interest expense:   
Compensation and employee benefits 96,554  91,535
Occupancy 15,696  14,991
Equipment and data processing 18,652  18,213
Professional services 4,366  4,404
FDIC insurance 1,445  2,722
Advertising and marketing 4,044  4,016
Amortization of identified intangible assets 1,663  2,080
Merger and restructuring expense 1,125  3,787
Other 13,936  13,484
Total non-interest expense 157,481  155,232
Income before provision for income taxes 116,029  112,740
Provision for income taxes 28,269  26,189
Net income before noncontrolling interest in subsidiary 87,760  86,551
Less net income attributable to noncontrolling interest in subsidiary 43  3,489
Net income attributable to Brookline Bancorp, Inc.$87,717 $83,062
Earnings per common share:   
Basic$1.10 $1.04
Diluted$1.10 $1.04
Weighted average common shares outstanding during the period:  
Basic 79,679,781  79,669,660
Diluted 79,856,921  79,909,243
Dividends paid per common share$0.440 $0.395
    



BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Asset Quality Analysis (Unaudited)
 At and for the Three Months Ended
 December 31, 2019 September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018
 (Dollars in Thousands)
NONPERFORMING ASSETS:         
Loans and leases accounted for on a nonaccrual basis:         
Commercial real estate mortgage$2,845  $2,910  $2,273  $2,889  $3,928 
Multi-family mortgage 84   87   94   101   330 
Construction          396   396 
Total commercial real estate loans 2,929   2,997   2,367   3,386   4,654 
          
Commercial 4,909   3,139   6,349   5,728   6,621 
Equipment financing 9,822   12,817   9,931   10,253   9,500 
Condominium association 151   163   170   224   265 
Total commercial loans and leases 14,882   16,119   16,450   16,205   16,386 
          
Residential mortgage 753   1,605   1,642   2,188   2,132 
Home equity 896   904   835   1,022   908 
Other consumer 1   3   7   8   17 
Total consumer loans 1,650   2,512   2,484   3,218   3,057 
          
Total nonaccrual loans and leases 19,461   21,628   21,301   22,809   24,097 
          
Other real estate owned    201   957   3,054   3,054 
Other repossessed assets 2,631   1,931   1,009   858   965 
Total nonperforming assets$22,092  $23,760  $23,267  $26,721  $28,116 
          
Loans and leases past due greater than 90 days and still accruing$10,109  $11,885  $11,612  $16,800  $13,482 
          
Troubled debt restructurings on accrual 17,076   22,233   27,761   28,543   12,257 
Troubled debt restructurings on nonaccrual 6,104   5,763   8,431   7,597   8,684 
Total troubled debt restructurings$23,180  $27,996  $36,192  $36,140  $20,941 
          
Total nonaccrual loans and leases as a percentage of total loans and leases 0.29%  0.33%  0.33%  0.36%  0.38%
Nonperforming assets as a percentage of total assets 0.28%  0.30%  0.30%  0.36%  0.38%
          
PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:      
Allowance for loan and lease losses at beginning of period$59,135  $58,635  $58,041  $58,692  $59,997 
Charge-offs (1,894)  (1,190)  (3,412)  (2,542)  (1,604)
Recoveries 272   824   330   441   352 
Net charge-offs (1,622)  (366)  (3,082)  (2,101)  (1,252)
(Credit) provision for loan and lease losses 3,569   866   3,676   1,450   (53)
Allowance for loan and lease losses at end of period$61,082  $59,135  $58,635  $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, 2019September 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 %