Brookline Bancorp Announces First Quarter Results

Boston, Massachusetts, UNITED STATES


Net Income of $24.7 million, EPS of $0.32

Increases Quarterly Dividend 4%

BOSTON, MA, April 27, 2022 (GLOBE NEWSWIRE) -- Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced net income of $24.7 million, or $0.32 per basic and diluted share, for the first quarter of 2022, compared to net income of $28.5 million, or $0.37 per basic and diluted share, for the fourth quarter of 2021, and net income of $26.5 million, or $0.34 per basic and diluted share, for the first quarter of 2021.

Paul Perrault, Chairman and Chief Executive Officer of the Company commented on the first quarter earnings, “I am pleased to report solid earnings for the first quarter of $24.7 million or $0.32 per share.” Perrault continued, “Our bankers continued to generate strong loan and deposit growth during the first quarter. Asset quality continues to be strong as the economy in the markets we serve continues to improve.”

BALANCE SHEET

Total assets at March 31, 2022 increased $31.1 million to $8.63 billion from $8.60 billion at December 31, 2021, and increased $73.9 million from $8.56 billion at March 31, 2021. At March 31, 2022, total loans and leases were $7.2 billion, representing an increase of $68.7 million from December 31, 2021, and a decrease of $44.4 million from March 31, 2021.

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 March 31, 2022, $14.0 million in PPP loans remain outstanding, net of deferred fees and costs of $0.4 million. Excluding PPP loan activity, the core loan portfolio grew $122.4 million in the first quarter compared to growth of $315.6 million in the fourth quarter.

Total investment securities at March 31, 2022 increased $9.7 million to $730.6 million from $720.9 million at December 31, 2021, and increased $0.1 million from $730.4 million at March 31, 2021. Total cash and cash equivalents at March 31, 2022 decreased $34.5 million to $293.3 million from $327.7 million at December 31, 2021, and increased $162.3 million from $130.9 million at March 31, 2021. As of March 31, 2022, total investment securities and total cash and cash equivalents represented 11.9 percent of total assets as compared to 12.2 percent and 10.1 percent as of December 31, 2021 and March 31, 2021, respectively.

Total deposits at March 31, 2022 increased $44.5 million to $7.09 billion from $7.05 billion at December 31, 2021, and increased $227.6 million from $6.87 billion at March 31, 2021.

Total borrowed funds at March 31, 2022 increased $35.6 million to $392.9 million from $357.3 million at December 31, 2021, and decreased $153.1 million from $546.0 million at March 31, 2021.

The ratio of stockholders’ equity to total assets was 11.37 percent at March 31, 2022, as compared to 11.57 percent at December 31, 2021, and 11.04 percent at March 31, 2021. The ratio of tangible stockholders’ equity to tangible assets (non-GAAP) was 9.67 percent at March 31, 2022, as compared to 9.87 percent at December 31, 2021, and 9.31 percent at March 31, 2021. Tangible book value per share (non-GAAP) decreased $0.17 from $10.73 at December 31, 2021 to $10.56 at March 31, 2022, compared to $10.01 at March 31, 2021.

NET INTEREST INCOME

Net interest income decreased $1.7 million to $69.8 million for the first quarter of 2022 from $71.5 million at the quarter ended December 31, 2021. The net interest margin decreased 3 basis points to 3.49 percent for the three months ended March 31, 2022 from 3.52 percent for the three months ended December 31, 2021.

NON-INTEREST INCOME

Total non-interest income for the quarter ended March 31, 2022 decreased $5.2 million to $5.5 million from $10.7 million for the quarter ended December 31, 2021. The decrease was primarily driven by a decrease of $3.3 million in loan level derivative income, net, a decrease of $1.6 million in gain on sales of loans and leases, a decrease of $0.5 million in other non-interest income, and a decrease of $0.1 million in deposit fees, partially offset by an increase of $0.3 million in loan fees.

PROVISION FOR CREDIT LOSSES

The Company recorded a negative provision for credit losses of $0.2 million for the quarter ended March 31, 2022, compared to a provision for credit losses of $0.8 million for the quarter ended December 31, 2021. Total net charge-offs for the first quarter of 2022 were $1.9 million compared to $2.1 million in the fourth quarter of 2021. The decrease was primarily driven by a decrease in net charge-offs of equipment financing and commercial loans of $0.1 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 11 basis points for the first quarter of 2022 from 12 basis points for the fourth quarter of 2021.

The allowance for loan and lease losses represented 1.32 percent of total loans and leases at March 31, 2022, compared to 1.38 percent at December 31, 2021, and 1.51 percent at March 31, 2021. Excluding PPP loans, the allowance for loan and lease losses represented 1.32 percent of total loans and leases at March 31, 2022 compared to 1.40 percent at December 31, 2021, and 1.65 percent at March 31, 2021.

ASSET QUALITY

The ratio of nonperforming loans and leases to total loans and leases was 0.35 percent at March 31, 2022, a decrease from 0.45 percent at December 31, 2021. Total nonaccrual loans and leases decreased $7.0 million to $25.5 million at March 31, 2022 from $32.5 million at December 31, 2021. The ratio of nonperforming assets to total assets was 0.31 percent at March 31, 2022, a decrease from 0.39 percent at December 31, 2021. Total nonperforming assets decreased $6.7 million to $26.5 million at March 31, 2022 from $33.2 million at December 31, 2021.

From March 1, 2020 through January 1, 2022, 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 March 31, 2022, approximately 98 percent of loans granted an initial loan payment deferral have returned to payment status and 69 credits totaling $15.0 million, or 0.2 percent of total loans outstanding, are operating under modified terms.

NON-INTEREST EXPENSE

Non-interest expense for the quarter ended March 31, 2022 decreased $0.4 million to $42.5 million from $42.9 million for the quarter ended December 31, 2021. The decrease was primarily driven by a decrease of $1.7 million in compensation and employee benefits expense and a decrease of $0.4 million in other non-interest expense, partially offset by an increase of $0.7 million in occupancy expense, an increase of $0.5 million in equipment and data processing expense, an increase of $0.4 million in advertising and marketing expense, and an increase of $0.1 million in FDIC insurance expense.

PROVISION FOR INCOME TAXES

The effective tax rate was 25.2 percent for the three months ended March 31, 2022 compared to 25.9 percent for the three months ended December 31, 2021 and 24.9 percent for the three months ended March 31, 2021.

RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

The annualized return on average assets decreased to 1.16 percent during the first quarter 2022 from 1.35 percent for the fourth quarter of 2021.

The annualized return on average stockholders' equity decreased to 9.91 percent during the first quarter of 2022 from 11.56 percent for the fourth quarter of 2021. The annualized return on average tangible stockholders’ equity decreased to 11.84 percent for the first quarter of 2022 from 13.84 percent for the fourth quarter of 2021.

DIVIDEND DECLARED

The Company’s Board of Directors approved a dividend of $0.130 per share for the quarter ended March 31, 2022, an increase of half a cent from the prior period. The dividend will be paid on May 27, 2022 to stockholders of record on May 13, 2022, representing an increase of 4.0 percent from the prior quarter.

CONFERENCE CALL

The Company will conduct a conference call/webcast at 1:30 PM Eastern Time on Thursday, April 28, 2022 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/mediaframe/webcast.html?webcastid=tiHQ5cik. To listen to the call without access to the slides, interested parties may dial 844-200-6205 (United States) or 929-526-1599 (internationally) and ask for the Brookline Bancorp, Inc. conference call (Access Code 477488). 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 866-813-9403 (United States) or 1-929-458-6194 (internationally) and entering the passcode: 051536.

ABOUT BROOKLINE BANCORP, INC.

Brookline Bancorp, Inc., a bank holding company with $8.6 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. We may also make forward-looking statements in other documents we file with the Securities and Exchange Commission ("SEC"), in our annual reports to shareholders, in press releases and other written materials, and in oral statements made by our officers, directors or employees. You can identify forward looking statements by the use of the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “assume,” “outlook,” “will,” “should,” and other expressions that predict or indicate future events and trends and which do not relate to historical matters, including statements regarding the Company’s business, credit quality, financial condition, liquidity and results of operations. Forward-looking statements may differ, possibly materially, from what is included in this press release due to factors and future developments that are uncertain and beyond the scope of the Company’s control. These 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; 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 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:

 

 

BROOKLINE BANCORP, INC. AND SUBSIDIARIES 
Selected Financial Highlights (Unaudited) 
       
 At and for the Three Months Ended 
 March 31,
2022
December 31,
2021
September 30,
2021
June 30,
2021
March 31,
2021
 
 (Dollars In Thousands Except per Share Data) 
Earnings Data:      
Net interest income$69,848 $71,461 $70,697 $71,106 $69,109  
(Credit) provision for credit losses (164) 751  (3,110) (3,331) (2,147) 
Non-interest income 5,529  10,699  5,586  5,910  4,794  
Non-interest expense 42,487  42,909  40,922  37,966  40,811  
Income before provision for income taxes 33,050  38,500  38,471  42,381  35,239  
Net income 24,705  28,545  28,839  31,602  26,454  
       
Performance Ratios:      
Net interest margin (1) 3.49% 3.52% 3.53% 3.52% 3.39% 
Interest-rate spread (1) 3.31% 3.42% 3.39% 3.34% 3.15% 
Return on average assets (annualized) 1.16% 1.35% 1.38% 1.48% 1.21% 
Return on average tangible assets (annualized) (non-GAAP) 1.18% 1.38% 1.41% 1.51% 1.24% 
Return on average stockholders' equity (annualized) 9.91% 11.56% 11.79% 13.21% 11.18% 
Return on average tangible stockholders' equity (annualized) (non-GAAP) 11.84% 13.84% 14.15% 15.92% 13.51% 
Efficiency ratio (2) 56.37% 52.23% 53.64% 49.30% 55.22% 
       
Per Common Share Data:      
Net income — Basic$0.32 $0.37 $0.37 $0.40 $0.34  
Net income — Diluted 0.32  0.37  0.37  0.40  0.34  
Cash dividends declared 0.130  0.125  0.125  0.120  0.120  
Book value per share (end of period) 12.65  12.82  12.61  12.44  12.10  
Tangible book value per share (end of period) (non-GAAP) 10.56  10.73  10.51  10.35  10.01  
Stock price (end of period) 15.82  16.19  15.26  14.95  15.00  
 
Balance Sheet:      
Total assets$8,633,736 $8,602,622 $8,312,649 $8,461,964 $8,559,810  
Total loans and leases 7,223,130  7,154,457  6,931,694  7,020,275  7,267,552  
Total deposits 7,094,378  7,049,906  6,873,010  6,894,701  6,866,786  
Total stockholders’ equity 981,935  995,342  978,452  972,252  945,399  
       
Asset Quality:      
Nonperforming assets$26,506 $33,177 $36,461 $34,588 $37,403  
Nonperforming assets as a percentage of total assets 0.31% 0.39% 0.44% 0.41% 0.44% 
Allowance for loan and lease losses$95,463 $99,084 $102,515 $106,474 $109,837  
Allowance for loan and lease losses as a percentage of total loans and leases 1.32% 1.38% 1.48% 1.52% 1.51% 
Net loan and lease charge-offs$1,947 $2,124 $1,255 $595 $1,760  
Net loan and lease charge-offs as a percentage of average loans and leases (annualized) 0.11% 0.12% 0.07% 0.03% 0.10% 
       
Capital Ratios:      
Stockholders’ equity to total assets 11.37% 11.57% 11.77% 11.49% 11.04% 
Tangible stockholders’ equity to tangible assets (non-GAAP) 9.67% 9.87% 10.01% 9.75% 9.31% 
       
(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)
 March 31, 2022December 31,
2021
September 30,
2021
June 30,
2021
March 31, 2021
ASSETS(In Thousands Except Share Data)
Cash and due from banks$89,032 $66,265 $28,865 $36,079 $41,284 
Short-term investments 204,239  261,472  210,279  284,370  89,643 
Total cash and cash equivalents 293,271  327,737  239,144  320,449  130,927 
Investment securities available-for-sale 730,562  720,866  732,020  694,151  729,901 
Equity securities held-for-trading -  -  -  -  518 
Total investment securities 730,562  720,866  732,020  694,151  730,419 
Allowance for investment security losses (4) -  -  -  - 
Net investment securities 730,558  720,866  732,020  694,151  730,419 
Loans and leases:     
Commercial real estate loans 4,235,325  4,103,040  3,909,011  3,815,581  3,790,341 
Commercial loans and leases 1,800,383  1,887,136  1,869,686  2,038,851  2,324,202 
Consumer loans 1,187,422  1,164,281  1,152,997  1,165,843  1,153,009 
Total loans and leases 7,223,130  7,154,457  6,931,694  7,020,275  7,267,552 
Allowance for loan and lease losses (95,463) (99,084) (102,515) (106,474) (109,837)
Net loans and leases 7,127,667  7,055,373  6,829,179  6,913,801  7,157,715 
Restricted equity securities 29,066  28,981  28,098  31,627  40,400 
Premises and equipment, net of accumulated depreciation 69,365  70,359  70,811  71,240  72,524 
Right-of-use asset operating leases 19,571  20,508  21,879  22,682  23,180 
Deferred tax asset 46,886  38,987  39,643  41,324  42,857 
Goodwill 160,427  160,427  160,427  160,427  160,427 
Identified intangible assets, net of accumulated amortization 2,142  2,276  2,484  2,692  2,920 
Other real estate owned and repossessed assets 990  718  601  372  6,383 
Other assets 153,793  176,390  188,363  203,199  192,058 
Total assets$8,633,736 $8,602,622 $8,312,649 $8,461,964 $8,559,810 
LIABILITIES AND STOCKHOLDERS' EQUITY     
Deposits:     
Demand checking accounts$1,903,331 $1,888,462 $1,816,116 $1,926,713 $1,724,170 
NOW accounts 627,904  604,097  513,032  495,598  481,988 
Savings accounts 967,183  915,804  823,095  782,482  724,504 
Money market accounts 2,432,377  2,358,306  2,393,362  2,250,651  2,192,468 
Certificate of deposit accounts 1,048,036  1,117,695  1,141,861  1,178,131  1,273,105 
Brokered deposit accounts 115,547  165,542  185,544  261,126  470,551 
Total deposits 7,094,378  7,049,906  6,873,010  6,894,701  6,866,786 
Borrowed funds:     
Advances from the FHLBB 201,236  147,907  113,977  204,154  378,646 
Subordinated debentures and notes 83,934  83,897  83,859  83,821  83,783 
Other borrowed funds 107,727  125,517  69,703  75,039  83,574 
Total borrowed funds 392,897  357,321  267,539  363,014  546,003 
Operating lease liabilities 19,571  20,508  21,879  22,682  23,180 
Mortgagors’ escrow accounts 5,780  6,296  6,455  6,231  6,483 
Reserve for unfunded credits 16,305  14,794  12,736  13,142  13,705 
Accrued expenses and other liabilities 122,870  158,455  152,578  189,942  158,254 
Total liabilities 7,651,801  7,607,280  7,334,197  7,489,712  7,614,411 
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 737,658  736,826  735,990  738,557  737,882 
Retained earnings, partially restricted 357,576  342,639  323,862  304,466  282,301 
Accumulated other comprehensive income (29,322) (110) 2,615  6,089  2,082 
Treasury stock, at cost;     
7,037,464, 7,037,464, 7,034,754, 6,536,478, and 6,534,602 shares, respectively (84,718) (84,718) (84,684) (77,493) (77,463)
Unallocated common stock held by the Employee Stock Ownership Plan;     
18,051, 24,660, 31,278, 37,890, and 44,502 shares, respectively (111) (147) (183) (219) (255)
Total stockholders' equity 981,935  995,342  978,452  972,252  945,399 
Total liabilities and stockholders' equity$8,633,736 $8,602,622 $8,312,649 $8,461,964 $8,559,810 

 

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
 Three Months Ended
 March 31,
2022
December 31,
2021
September 30, 2021June 30,
2021
March 31,
2021
 (In Thousands Except Share Data)
Interest and dividend income:     
Loans and leases$71,721 $73,560 $74,332 $75,026 $75,009 
Debt securities 2,996  2,972  2,967  3,121  3,118 
Marketable and restricted equity securities 328  325  313  233  301 
Short-term investments 66  88  83  42  39 
Total interest and dividend income 75,111  76,945  77,695  78,422  78,467 
Interest expense:     
Deposits 3,771  4,055  4,571  5,380  6,707 
Borrowed funds 1,492  1,429  2,427  1,936  2,651 
Total interest expense 5,263  5,484  6,998  7,316  9,358 
Net interest income 69,848  71,461  70,697  71,106  69,109 
(Credit) provision for credit losses (164) 751  (3,110) (3,331) (2,147)
Provision for investment losses 4  -  -  -  - 
Net interest income after provision for credit losses 70,008  70,710  73,807  74,437  71,256 
Non-interest income:     
Deposit fees 2,500  2,653  2,629  3,015  2,281 
Loan fees 747  448  487  607  599 
Loan level derivative income, net 686  3,981  218  7  474 
Gain (loss) on investment securities, net -  (32) -  1  (7)
Gain on sales of loans and leases held-for-sale 344  1,933  557  538  709 
Other 1,252  1,716  1,695  1,742  738 
Total non-interest income 5,529  10,699  5,586  5,910  4,794 
Non-interest expense:     
Compensation and employee benefits 26,884  28,598  27,206  25,161  25,821 
Occupancy 4,284  3,558  3,567  3,832  4,004 
Equipment and data processing 5,078  4,576  4,556  4,697  4,493 
Professional services 1,226  1,151  1,072  1,245  1,226 
FDIC insurance 728  617  662  657  1,044 
Advertising and marketing 1,272  880  1,077  1,110  1,100 
Amortization of identified intangible assets 134  208  208  228  232 
Other 2,881  3,321  2,574  1,036  2,891 
Total non-interest expense 42,487  42,909  40,922  37,966  40,811 
Income before provision for income taxes 33,050  38,500  38,471  42,381  35,239 
Provision for income taxes 8,345  9,955  9,632  10,779  8,785 
Net income$24,705 $28,545 $28,839 $31,602 $26,454 
Earnings per common share:     
Basic$0.32 $0.37 $0.37 $0.40 $0.34 
Diluted$0.32 $0.37 $0.37 $0.40 $0.34 
Weighted average common shares outstanding during the period:    
Basic 77,617,227  77,610,608  78,000,261  78,150,364  78,143,752 
Diluted 77,926,822  77,864,097  78,240,633  78,470,451  78,404,063 
Dividends paid per common share$0.125 $0.125 $0.120 $0.120 $0.115 
      
 

 

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Asset Quality Analysis (Unaudited)
 At and for the Three Months Ended
 March 31,
2022
December 31,
2021
September 30, 2021June 30,
2021
March 31,
2021
 (Dollars in Thousands)
NONPERFORMING ASSETS:     
Loans and leases accounted for on a nonaccrual basis:     
Commercial real estate mortgage$8,313 $10,848 $10,963 $11,657 $3,611 
Multi-family mortgage -  -  -  -  - 
Construction -  -  -  -  3,853 
Total commercial real estate loans 8,313  10,848  10,963  11,657  7,464 
      
Commercial 1,366  2,318  2,539  3,207  3,161 
Equipment financing 11,685  15,014  17,655  14,872  15,772 
Condominium association 77  84  91  97  106 
Total commercial loans and leases 13,128  17,416  20,285  18,176  19,039 
      
Residential mortgage 3,394  3,909  4,150  3,638  3,722 
Home equity 680  285  461  744  793 
Other consumer 1  1  1  1  2 
Total consumer loans 4,075  4,195  4,612  4,383  4,517 
      
Total nonaccrual loans and leases 25,516  32,459  35,860  34,216  31,020 
      
Other real estate owned -  -  -  -  5,328 
Other repossessed assets 990  718  601  372  1,055 
Total nonperforming assets$26,506 $33,177 $36,461 $34,588 $37,403 
      
Loans and leases past due greater than 90 days and still accruing$4 $1 $838 $3,154 $1,179 
      
Troubled debt restructurings on accrual 10,858  12,580  13,526  14,387  16,770 
Troubled debt restructurings on nonaccrual 5,189  6,709  6,655  6,410  6,293 
Total troubled debt restructurings$16,047 $19,289 $20,181 $20,797 $23,063 
      
Nonperforming loans and leases as a percentage of total loans and leases 0.35% 0.45% 0.52% 0.49% 0.43%
Nonperforming assets as a percentage of total assets 0.31% 0.39% 0.44% 0.41% 0.44%
      
PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:   
Allowance for loan and lease losses at beginning of period$99,084 $102,515 $106,474 $109,837 $114,379 
Charge-offs (2,344) (2,562) (1,600) (1,221) (2,143)
Recoveries 397  438  345  626  383 
Net charge-offs (1,947) (2,124) (1,255) (595) (1,760)
(Credit) provision for loan and lease losses
excluding unfunded commitments *
 (1,674) (1,307) (2,704) (2,768) (2,782)
Allowance for loan and lease losses at end of period$95,463 $99,084 $102,515 $106,474 $109,837 
      
Allowance for loan and lease losses as a percentage of total loans and leases 1.32% 1.38% 1.48% 1.52% 1.51%
      
NET CHARGE-OFFS:     
Commercial real estate loans$31 $- $(1)$17 $- 
Commercial loans and leases 1,948  2,143  1,276  695  1,809 
Consumer loans (32) (19) (20) (117) (49)
Total net charge-offs$1,947 $2,124 $1,255 $595 $1,760 
      
Net loan and lease charge-offs as a percentage of average loans and leases (annualized) 0.11% 0.12% 0.07% 0.03% 0.10%
      
*Provision for loan and lease losses does not include provision (credit) of $1.5 million, $2.1 million, $(0.4) million, $(0.6) million and $0.6 million, for credit losses on unfunded commitments during the three months ended March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021 and March 31, 2021, respectively.     
 
 

 

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Average Yields / Costs (Unaudited)
 Three Months Ended
 March 31, 2022December 31, 2021March 31, 2021
 Average BalanceInterest (1)Average Yield/ CostAverage BalanceInterest (1)Average Yield/ CostAverage BalanceInterest (1)Average Yield/ Cost
 (Dollars in Thousands)
Assets:         
Interest-earning assets:         
Investments:         
Debt securities (2)$720,263$2,9961.66%$727,734$2,9721.63%$754,699$3,1181.65%
Marketable and restricted equity securities (2) 27,909 3284.70% 27,019 3254.81% 45,673 3012.64%
Short-term investments 192,475 660.14% 224,573 880.16% 191,751 390.08%
Total investments 940,647 3,3901.44% 979,326 3,3851.38% 992,123 3,4581.39%
Loans and Leases:         
Commercial real estate loans (3) 4,152,414 36,0273.47% 3,996,647 35,7623.50% 3,785,897 34,2453.62%
Commercial loans (3) 755,809 7,9984.23% 820,932 10,1464.84% 1,249,824 12,7464.08%
Equipment financing (3) 1,105,194 18,0126.52% 1,092,457 18,1756.65% 1,079,039 18,0436.69%
Residential mortgage loans (3) 804,939 6,9923.47% 796,326 6,7853.41% 780,785 7,2323.71%
Other consumer loans (3) 366,534 2,7503.04% 368,087 2,7512.96% 375,590 2,7953.02%
Total loans and leases 7,184,890 71,7794.00% 7,074,449 73,6194.16% 7,271,135 75,0614.13%
Total interest-earning assets 8,125,537 75,1693.70% 8,053,775 77,0043.82% 8,263,258 78,5193.80%
Non-interest-earning assets 405,506   408,456   450,900  
Total assets$8,531,043  $8,462,231  $8,714,158  
          
Liabilities and Stockholders' Equity:         
Interest-bearing liabilities:         
Deposits:         
NOW accounts$589,891 1030.07%$528,335 1010.08%$477,893 1300.11%
Savings accounts 933,173 1980.09% 897,821 2190.10% 712,728 2350.13%
Money market accounts 2,416,577 1,5700.26% 2,430,496 1,6150.26% 2,084,503 1,4860.29%
Certificates of deposit 1,091,729 1,8480.69% 1,129,645 2,0720.73% 1,328,112 4,1541.27%
Brokered deposit accounts 132,751 520.16% 116,611 480.16% 610,824 7020.47%
Total interest-bearing deposits 5,164,121 3,7710.30% 5,102,908 4,0550.32% 5,214,060 6,7070.52%
Borrowings         
Advances from the FHLBB 103,878 1870.72% 76,786 1170.59% 488,537 1,3701.12%
Subordinated debentures and notes 83,915 1,2445.93% 83,878 1,2415.92% 83,764 1,2425.93%
Other borrowed funds 130,080 610.19% 112,137 710.25% 92,391 390.17%
Total borrowings 317,873 1,4921.88% 272,801 1,4292.05% 664,692 2,6511.60%
Total interest-bearing liabilities 5,481,994 5,2630.39% 5,375,709 5,4840.40% 5,878,752 9,3580.65%
Non-interest-bearing liabilities:         
Demand checking accounts 1,880,039   1,892,763   1,643,373  
Other non-interest-bearing liabilities 171,717   206,237   245,551  
Total liabilities 7,533,750   7,474,709   7,767,676  
Stockholders’ equity 997,293   987,522   946,482  
Total liabilities and equity$8,531,043  $8,462,231  $8,714,158  
Net interest income (tax-equivalent basis) /Interest-rate spread (4)  69,9063.31%  71,5203.42%  69,1613.15%
Less adjustment of tax-exempt income  58   59   52 
Net interest income $69,848  $71,461  $69,109 
Net interest margin (5)  3.49%  3.52%  3.39%
          
(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 
 March 31,
     2022  2021 
Reconciliation Table - Non-GAAP Financial Information  (Dollars in Thousands Except Share Data)
     
Net income  $24,705 $26,454 
Less:     
Security gains (losses) (after-tax)   -  (5)
Operating earnings   $24,705 $26,459 
      
Operating earnings per common share:     
Basic   $0.32 $0.34 
Diluted    0.32  0.34 
      
Weighted average common shares outstanding during the period:    
Basic    77,617,227  78,143,752 
Diluted    77,926,822  78,404,063 
      
      
Return on average assets *   1.16% 1.21%
Less:     
Security gains (losses) (after-tax) *   -% -%
Operating return on average assets *   1.16% 1.21%
      
      
Return on average tangible assets *   1.18% 1.24%
Less:     
Security gains (losses) (after-tax) *   -% -%
Operating return on average tangible assets *   1.18% 1.24%
      
      
Return on average stockholders' equity *   9.91% 11.18%
Less:     
Security gains (losses) (after-tax) *   -% -%
Operating return on average stockholders' equity *   9.91% 11.18%
      
      
Return on average tangible stockholders' equity *   11.84% 13.51%
Less:     
Security gains (losses) (after-tax) *   -% -%
Operating return on average tangible stockholders' equity *   11.84% 13.51%
      
* Ratios at and for the three months ended are annualized.    
 
 
 At and for the Three Months Ended
 March 31,
2022
December 31,
2021
September 30,
2021
June 30,
2021
March 31,
2021
 (Dollars in Thousands)
      
Net income, as reported$24,705 $28,545 $28,839 $31,602 $26,454 
      
Average total assets$8,531,043 $8,462,231 $8,360,635 $8,540,228 $8,714,158 
Less: Average goodwill and average identified intangible assets, net 162,632  162,804  163,011  163,224  163,457 
Average tangible assets$8,368,411 $8,299,427 $8,197,624 $8,377,004 $8,550,701 
      
Return on average tangible assets (annualized) 1.18 % 1.38 % 1.41 % 1.51 % 1.24 %
      
Average total stockholders’ equity$997,293 $987,522 $978,371 $957,207 $946,482 
Less: Average goodwill and average identified intangible assets, net 162,632  162,804  163,011  163,224  163,457 
Average tangible stockholders’ equity$834,661 $824,718 $815,360 $793,983 $783,025 
      
Return on average tangible stockholders’ equity (annualized) 11.84 % 13.84 % 14.15 % 15.92 % 13.51 %
      
Total stockholders’ equity$981,935 $995,342 $978,452 $972,252 $945,399 
Less:     
Goodwill 160,427  160,427  160,427  160,427  160,427 
Identified intangible assets, net 2,142  2,276  2,484  2,692  2,920 
Tangible stockholders' equity$819,366 $832,639 $815,541 $809,133 $782,052 
      
Total assets$8,633,736 $8,602,622 $8,312,649 $8,461,964 $8,559,810 
Less:     
Goodwill 160,427  160,427  160,427  160,427  160,427 
Identified intangible assets, net 2,142  2,276  2,484  2,692  2,920 
Tangible assets$8,471,167 $8,439,919 $8,149,738 $8,298,845 $8,396,463 
      
Tangible stockholders’ equity to tangible assets 9.67 % 9.87 % 10.01 % 9.75 % 9.31 %
      
Tangible stockholders' equity$819,366 $832,639 $815,541 $809,133 $782,052 
      
Number of common shares issued 85,177,172  85,177,172  85,177,172  85,177,172  85,177,172 
Less:     
Treasury shares 7,037,464  7,037,464  7,034,754  6,536,478  6,534,602 
Unallocated ESOP shares 18,051  24,660  31,278  37,890  44,502 
Unvested restricted shares 500,098  500,098  502,808  448,105  449,981 
Number of common shares outstanding 77,621,559  77,614,950  77,608,332  78,154,699  78,148,087 
      
Tangible book value per common share$                    10.56  $                       10.73  $                        10.51  $                   10.35  $                    10.01  
      
Allowance for loan and lease losses$95,463 $99,084 $102,515 $106,474 $109,837 
      
Total loans and leases$7,223,130 $7,154,457 $6,931,694 $7,020,275 $7,267,552 
Less:     
Total PPP loans 14,013  67,711  160,586  348,411  604,790 
Total loans and leases excluding PPP loans$7,209,117 $7,086,746 $6,771,108 $6,671,864 $6,662,762 
      
Allowance for loan and lease losses as a percentage of total loans and leases less PPP loans 1.32 % 1.40 % 1.51 % 1.60 % 1.65 %
 

A PDF accompanying this announcement is available at http://ml.globenewswire.com/Resource/Download/4fad90dc-2014-4f33-8dff-96a2325e992c



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BRKL 1Q2022 Earnings Pres Final.pdf

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