Brookline Bancorp Announces Fourth Quarter Results

Net Income of $26.7 million, EPS of $0.34

Announces $0.115 Dividend per Share

Announces $10.0 million Stock Buyback Program

BOSTON, Jan. 27, 2021 (GLOBE NEWSWIRE) --  Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced net income of $26.7 million, or $0.34 per basic and diluted share, for the fourth quarter of 2020, compared to $18.7 million, or $0.24 per basic and diluted share, for the third quarter of 2020, and $22.2 million, or $0.28 per basic and diluted share, for the fourth quarter of 2019.

For the year ended December 31, 2020, the Company reported net income of $47.6 million, or $0.60 per basic and diluted share. This compared to $87.7 million, or $1.10 per basic and diluted share, for the year ended December 31, 2019.

Paul Perrault, President and Chief Executive Officer, commented on the Company’s performance in 2020, “This past year was challenging in many respects, and I would like to recognize our employees for their hard work. Given the challenges of this past year, I am very pleased with our financial performance and this quarter’s earnings report. We are cautiously optimistic and think that we are well positioned as we look forward to what we hope is a more positive environment in 2021, but remain diligent and prudent as we continue to navigate our way through these challenging times.”

On December 27, 2020, President Trump signed the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (the “Economic Aid Act”) which, among other items provides for a third round of Paycheck Protection Program (“PPP”) loans. The Company’s banks are participating in the PPP program and as of January 27, 2021, the Company has not funded any third round PPP loans. In the first two rounds of PPP funding, the Company funded 2,922 PPP loans totaling $581.7 million as of August 8, 2020 when the program closed, of which $489.2 million remains outstanding, net of deferred fees and costs at December 31, 2020.

BALANCE SHEET

Total assets at December 31, 2020 decreased $57.8 million to $8.94 billion from $9.00 billion at September 30, 2020, and increased $1.09 billion from $7.86 billion at December 31, 2019. At December 31, 2020, total loans and leases were $7.27 billion, representing a decrease of $126.8 million from September 30, 2020, primarily driven by PPP Forgiveness funds received and decrease of $79.2 million in PPP originations, and an increase of $531.7 million from December 31, 2019, primarily driven by PPP loan activity.

Total investment securities at December 31, 2020 decreased $38.0 million to $746.3 million from $784.4 million at September 30, 2020, and increased $157.0 million from $589.4 million at December 31, 2019. Total cash and cash equivalents at December 31, 2020 increased $117.6 million to $434.9 million from $317.3 million at September 30, 2020, and increased $357.1 million from $77.8 million at December 31, 2019. As of December 31, 2020, total investment securities and total cash and cash equivalents represented 13.2 percent of total assets as compared to 12.2 percent and 8.5 percent as of September 30, 2020 and December 31, 2019, respectively.

Total deposits at December 31, 2020 increased $118.2 million to $6.91 billion from $6.79 billion at September 30, 2020 and increased $1.08 billion from $5.83 billion at December 31, 2019.

Total borrowed funds at December 31, 2020 decreased $184.8 million to $820.2 million from $1.01 billion at September 30, 2020 and decreased $82.5 million from $902.7 million at December 31, 2019.

The ratio of stockholders’ equity to total assets was 10.53 percent at December 31, 2020, as compared to 10.39 percent at September 30, 2020, and 12.04 percent at December 31, 2019. The ratio of tangible stockholders’ equity to tangible assets (non-GAAP) was 8.86 percent at December 31, 2020, as compared to 8.73 percent at September 30, 2020, and 10.15 percent at December 31, 2019. Tangible book value per share (non-GAAP) increased $0.19 from $9.77 at September 30, 2020 to $9.96 at December 31, 2020, compared to $9.80 at December 31, 2019.

NET INTEREST INCOME

Net interest income increased $2.3 million to $68.2 million during the fourth quarter of 2020 from $65.9 million for the quarter ended September 30, 2020. The net interest margin increased 15 basis points to 3.23 percent for the three months ended December 31, 2020 from 3.08 percent for the three months ended September 30, 2020.

NON-INTEREST INCOME

Non-interest income for the quarter ended December 31, 2020 decreased $0.7 million to $4.2 million from $4.9 million for the quarter ended September 30, 2020. The decrease was primarily driven by decreases of $0.6 million in gain on sales of loans and leases and $0.4 million in loan level derivative income, net, partially offset by increases of $0.2 million in loan fees and $0.1 million in other non-interest income.

PROVISION FOR CREDIT LOSSES

On January 1, 2020, the Company adopted ASU 2016-13 "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", commonly referred to as CECL. 

The Company recorded a negative provision for credit losses of $2.1 million for the quarter ended December 31, 2020, compared to a provision of $4.5 million for the quarter ended September 30, 2020. The negative provision results from, exclusive of PPP loans, a reduction in the quarter of both outstanding loans and commitments; the charge-off of a specifically reserved loan; and a modestly improved economic outlook in the models used for the ACL.

Total net charge-offs for the fourth quarter of 2020 were $4.4 million compared to $5.0 million in the third quarter of 2020. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis decreased to 24 basis points for the fourth quarter of 2020 from 27 basis points for the third quarter of 2020.

The allowance for loan and lease losses represented 1.57 percent of total loans and leases at December 31, 2020, compared to 1.62 percent at September 30, 2020, and 0.91 percent at December 31, 2019. Excluding PPP loans, the allowance for loan and lease losses represents 1.69 percent coverage at December 31, 2020 compared to 1.76 percent at September 30, 2020.

ASSET QUALITY

The ratio of total nonperforming loans and leases to total loans and leases was 0.53 percent at December 31, 2020 as compared to 0.51 percent at September 30, 2020. Nonperforming loans and leases increased $0.4 million to $38.4 million at December 31, 2020 from $38.0 million at September 30, 2020. The ratio of nonperforming assets to total assets was 0.50 percent at December 31, 2020 as compared to 0.44 percent at September 30, 2020. Nonperforming assets increased $5.6 million to $45.0 million at December 31, 2020 from $39.4 million at September 30, 2020.

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 (the “national emergency”), 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 December 31, 2020, approximately 92 percent of loans granted an initial loan payment deferral have returned to payment status and 298 credits totaling $90 million or 1.2 percent of total loans outstanding have been modified.

NON-INTEREST EXPENSE

Non-interest expense for the quarter ended December 31, 2020 decreased $0.9 million to $40.0 million from $40.9 million for the quarter ended September 30, 2020. The decrease was primarily driven by decreases of $1.0 million in compensation and employee benefits and $0.2 million in other non-interest expense, partially offset by an increase of $0.3 million in FDIC insurance.

PROVISION FOR INCOME TAXES

The effective tax rate was 22.7 percent and 23.3 percent for the three and twelve months ended December 31, 2020, respectively.

RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

The annualized return on average assets increased to 1.20 percent during the fourth quarter of 2020 compared to 0.83 percent for the third quarter of 2020; and was 0.55 percent for the year ended December 31, 2020, compared to 1.15 percent for the year ended December 31, 2019.

The annualized return on average tangible stockholders' equity increased to 13.79 percent during the fourth quarter of 2020 compared to 9.70 percent for the third quarter of 2020; and was 6.17 percent for the year ended December 31, 2020 compared to 11.67 percent for the year ended December 31, 2019.

DIVIDEND DECLARED

The Company’s Board approved a dividend of $0.115 per share for the quarter ended December 31, 2020. The dividend will be paid on February 26, 2021 to stockholders of record on February 12, 2021.

STOCK REPURCHASE

On December 4, 2019, the Board of Directors (the "Board") approved a stock repurchase program (the "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. On March 9, 2020, the Board approved an increase in the repurchase amount of $10.0 million bringing the total authorized amount to $20.0 million. Effective March 24, 2020, the Company suspended the Program. On October 28, 2020, the Board authorized the resumption of the Program. As of December 31, 2020, the Company has repurchased 1,715,730 shares at a weighted average price of $11.66.

On January 27, 2021, 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 commencing on February 1, 2021 and ending on December 31, 2021.

CONFERENCE CALL

The Company will conduct a conference call/webcast at 1:30 PM Eastern Daylight Time on Thursday, January 28, 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/brkl210128.html. To listen to the call without access to the slides, please dial 877-504-4120 (United States) or 412-902-6650 (international) and ask for the Brookline Bancorp, Inc. call. A recording of the call will be available for one week following the call on the Company’s website under “Investor Relations” or by dialing 877-344-7529 (United States) or 412-317-0088 (internationally) and entering the passcode: 10151088.

ABOUT BROOKLINE BANCORP, INC.

Brookline Bancorp, Inc., a bank holding company with $8.9 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 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 COVID-19 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, the length and extent of the economic contraction as a result of the COVID-19 pandemic; continued deterioration in employment levels, general business and economic conditions on a national basis and in the local markets in which the Company and its banking subsidiaries operate; 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, 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.
Chief Financial Officer
(617) 425-5331
ccarlson@brkl.com

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Selected Financial Highlights (Unaudited)
 
 At and for the Three Months EndedAt and for the Twelve Months Ended
 December 31, 2020September 30, 2020June 30, 2020March 31, 2020December 31, 2019December 31, 2020December 31, 2019
 (Dollars In Thousands Except per Share Data)
Earnings Data:       
Net interest income$68,225 $65,938 $64,288 $61,712 $63,931 $260,163 $253,300 
(Credit) provision for credit losses (2,103) 4,528  5,347  54,114  3,602  61,886  9,583 
Non-interest income 4,219  4,862  6,235  9,328  7,756  24,644  29,793 
Non-interest expense 40,038  40,947  39,109  40,748  38,815  160,844  157,481 
Income (loss) before provision for income taxes 34,509  25,325  26,067  (23,822) 29,270  62,077  116,029 
Net income (loss) attributable to Brookline Bancorp, Inc. 26,663  18,679  19,571  (17,276) 22,183  47,635  87,717 
        
Performance Ratios:       
Net interest margin (1) 3.23% 3.08% 3.09% 3.31% 3.43% 3.17% 3.51%
Interest-rate spread (1) 3.03% 2.85% 2.75% 2.91% 3.05% 2.88% 3.10%
Return on average assets (annualized) 1.20% 0.83% 0.88% (0.87)% 1.13% 0.55% 1.15%
Return on average tangible assets (annualized) (non-GAAP) 1.22% 0.84% 0.90% (0.89)% 1.15% 0.56% 1.17%
Return on average stockholders' equity (annualized) 11.38% 7.99% 8.45% (7.30)% 9.42% 5.09% 9.56%
Return on average tangible stockholders' equity (annualized) (non-GAAP) 13.79% 9.70% 10.28% (8.84)% 11.42% 6.17% 11.67%
Efficiency ratio (2) 55.27% 57.83% 55.46% 57.36% 54.15% 56.47% 55.63%
        
Per Common Share Data:       
Net income (loss) — Basic$0.34 $0.24 $0.25 $(0.22)$0.28 $0.60 $1.10 
Net income (loss) — Diluted 0.34  0.24  0.25  (0.22) 0.28  0.60  1.10 
Cash dividends declared 0.115  0.115  0.115  0.115  0.115  0.460  0.450 
Book value per share (end of period) 12.05  11.84  11.75  11.57  11.87  12.05  11.87 
Tangible book value per share (end of period) (non-GAAP) 9.96  9.77  9.67  9.49  9.80  9.96  9.80 
Stock price (end of period) 12.04  8.65  10.08  11.28  16.46  12.04  16.46 
        
Balance Sheet:       
Total assets$8,942,424 $9,000,192 $9,069,667 $8,461,591 $7,856,853 $8,942,424 $7,856,853 
Total loans and leases 7,269,553  7,396,358  7,407,697  6,822,527  6,737,816  7,269,553  6,737,816 
Total deposits 6,910,696  6,792,523  6,440,233  5,889,938  5,830,072  6,910,696  5,830,072 
Brookline Bancorp, Inc. stockholders’ equity 941,778  935,558  926,413  912,568  945,606  941,778  945,606 
        
Asset Quality:       
Nonperforming assets$44,963 $39,365 $42,754 $41,122 $22,092 $44,963 $22,092 
Nonperforming assets as a percentage of total assets 0.50% 0.44% 0.47% 0.49% 0.28% 0.50% 0.28%
Allowance for loan and lease losses$114,379 $119,971 $119,553 $113,181 $61,082 $114,379 $61,082 
Allowance for loan and lease losses as a percentage of total loans and leases 1.57% 1.62% 1.61% 1.66% 0.91% 1.57% 0.91%
Net loan and lease charge-offs$4,381 $4,963 $1,383 $2,234 $1,622 $12,961 $7,171 
Net loan and lease charge-offs as a percentage of average loans and leases (annualized) 0.24% 0.27% 0.08% 0.13% 0.10% 0.18% 0.11%
        
Capital Ratios:       
Stockholders’ equity to total assets 10.53% 10.39% 10.21% 10.78% 12.04% 10.53% 12.04%
Tangible stockholders’ equity to tangible assets (non-GAAP) 8.86% 8.73% 8.56% 9.02% 10.15% 8.86% 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, 2020September 30, 2020June 30, 2020March 31, 2020December 31, 2019
ASSETS(In Thousands Except Share Data)
Cash and due from banks$36,069 $33,818 $38,522 $86,996 $33,589 
Short-term investments 398,848  283,515  216,394  253,772  44,201 
Total cash and cash equivalents 434,917  317,333  254,916  340,768  77,790 
Investment securities available-for-sale 745,822  783,867  854,505  761,539  498,995 
Investment securities held-to-maturity -  -  -  -  86,780 
Equity securities held-for-trading 526  525  1,992  2,558  3,581 
Total investment securities 746,348  784,392  856,497  764,097  589,356 
Loans and leases:     
Commercial real estate loans 3,823,826  3,835,372  3,837,703  3,762,158  3,669,222 
Commercial loans and leases 2,274,899  2,354,613  2,361,463  1,826,866  1,838,748 
Consumer loans 1,170,828  1,206,373  1,208,531  1,233,503  1,229,846 
Total loans and leases 7,269,553  7,396,358  7,407,697  6,822,527  6,737,816 
Allowance for loan and lease losses (114,379) (119,971) (119,553) (113,181) (61,082)
Net loans and leases 7,155,174  7,276,387  7,288,144  6,709,346  6,676,734 
Restricted equity securities 49,786  61,715  71,638  68,472  53,818 
Premises and equipment, net of accumulated depreciation 71,568  72,441  73,127  73,786  74,350 
Right-of-use asset operating leases 24,143  23,492  24,343  24,789  24,876 
Deferred tax asset 40,129  42,269  42,683  38,141  25,017 
Goodwill 160,427  160,427  160,427  160,427  160,427 
Identified intangible assets, net of accumulated amortization 3,152  3,464  3,775  4,087  4,423 
Other real estate owned and repossessed assets 6,515  1,413  1,454  2,038  2,631 
Other assets 250,265  256,859  292,663  275,640  167,431 
Total assets$8,942,424 $9,000,192 $9,069,667 $8,461,591 $7,856,853 
LIABILITIES AND STOCKHOLDERS' EQUITY     
Deposits:     
Demand checking accounts$1,592,205 $1,550,267 $1,603,037 $1,175,329 $1,141,578 
NOW accounts 513,948  459,902  417,622  361,854  371,380 
Savings accounts 701,659  716,630  657,758  653,026  613,467 
Money market accounts 2,018,977  1,878,258  1,809,868  1,676,092  1,682,005 
Certificate of deposit accounts 1,389,998  1,492,913  1,601,768  1,669,509  1,671,738 
Brokered deposit accounts 693,909  694,553  350,180  354,128  349,904 
Total deposits 6,910,696  6,792,523  6,440,233  5,889,938  5,830,072 
Borrowed funds:     
Advances from the FHLBB 648,849  841,169  1,267,570  1,137,431  758,469 
Subordinated debentures and notes 83,746  83,707  83,668  83,630  83,591 
Other borrowed funds 87,652  80,169  55,431  70,743  60,689 
Total borrowed funds 820,247  1,005,045  1,406,669  1,291,804  902,749 
Operating lease liabilities 24,143  23,492  24,343  24,789  24,876 
Mortgagors’ escrow accounts 5,901  6,429  6,467  7,441  7,232 
Reserve for unfunded credits 13,071  13,964  14,816  17,222  1,880 
Accrued expenses and other liabilities 226,588  223,181  250,726  317,829  144,438 
Total liabilities 8,000,646  8,064,634  8,143,254  7,549,023  6,911,247 
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 737,178  736,294  738,155  737,422  736,601 
Retained earnings, partially restricted 264,892  247,336  237,808  227,359  265,376 
Accumulated other comprehensive income 16,490  18,782  19,538  16,947  2,283 
Treasury stock, at cost;     
6,525,783 shares, 5,629,854 shares, 5,859,708 shares, 5,862,811 shares, and 5,003,127 shares, respectively (77,343) (67,376) (69,572) (69,617) (59,073)
Unallocated common stock held by the Employee Stock Ownership Plan;     
51,114 shares, 58,227 shares, 65,334 shares, 72,441 shares, and 79,548 shares, respectively (291) (330) (368) (395) (433)
Total stockholders' equity 941,778  935,558  926,413  912,568  945,606 
Total liabilities and stockholders' equity$8,942,424 $9,000,192 $9,069,667 $8,461,591 $7,856,853 
      


BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
 Three Months Ended
 December 31, 2020September 30, 2020June 30, 2020
March 31, 2020December 31, 2019
 (In Thousands Except Share Data)
Interest and dividend income:     
Loans and leases$76,583 $76,240$77,416$79,559 $83,309
Debt securities 3,335  3,746 3,701 2,976  2,910
Marketable and restricted equity securities 490  672 908 778  813
Short-term investments 59  46 99 209  418
Total interest and dividend income 80,467  80,704 82,124 83,522  87,450
Interest expense:     
Deposits 8,825  10,583 12,778 16,240  17,655
Borrowed funds 3,417  4,183 5,058 5,570  5,864
Total interest expense 12,242  14,766 17,836 21,810  23,519
Net interest income 68,225  65,938 64,288 61,712  63,931
(Credit) provision for credit losses (2,103) 4,528 5,347 54,114  3,602
Net interest income after (credit) provision for credit losses 70,328  61,410 58,941 7,598  60,329
Non-interest income:     
Deposit fees 2,358  2,305 1,929 2,458  2,710
Loan fees 588  397 513 550  567
Loan level derivative income, net 145  527 1,440 2,156  2,494
Gain on investment securities, net -  54 586 1,330  133
Gain on sales of loans and leases held-for-sale 67  632 299 120  309
Other 1,061  947 1,468 2,714  1,543
Total non-interest income 4,219  4,862 6,235 9,328  7,756
Non-interest expense:     
Compensation and employee benefits 25,054  26,092 24,619 25,219  23,987
Occupancy 3,806  3,802 3,825 3,953  4,102
Equipment and data processing 4,193  4,293 4,155 4,703  4,601
Professional services 1,338  1,112 1,056 1,651  1,120
FDIC insurance 1,630  1,363 858 378  53
Advertising and marketing 1,010  1,024 1,017 1,075  828
Amortization of identified intangible assets 312  312 311 336  420
Other 2,695  2,949 3,268 3,433  3,704
Total non-interest expense 40,038  40,947 39,109 40,748  38,815
Income (loss) before provision for income taxes 34,509  25,325 26,067 (23,822) 29,270
Provision (benefit) for income taxes 7,846  6,646 6,496 (6,546) 7,087
Net income (loss) attributable to Brookline Bancorp, Inc.$26,663 $18,679$19,571$(17,276)$22,183
Earnings per common share:     
Basic 0.34  0.24 0.25 (0.22) 0.28
Diluted 0.34  0.24 0.25 (0.22) 0.28
Weighted average common shares outstanding during the period:    
Basic 78,533,351  78,948,139 78,849,282 79,481,462  79,682,724
Diluted 78,680,873  79,055,901 79,015,274 79,665,774  79,845,447
Dividends paid per common share$0.115 $0.115$0.115$0.115 $0.115
      


BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
  
 Twelve Months Ended December 31,
  2020 2019
 (In Thousands Except Share Data)
Interest and dividend income:  
Loans and leases$309,798$330,345
Debt securities 13,758 12,281
Marketable and restricted equity securities 2,848 3,477
Short-term investments 413 1,523
Total interest and dividend income 326,817 347,626
Interest expense:  
Deposits 48,426 69,615
Borrowed funds 18,228 24,711
Total interest expense 66,654 94,326
Net interest income 260,163 253,300
Provision for credit losses 61,886 9,583
Net interest income after provision for credit losses 198,277 243,717
Non-interest income:  
Deposit fees 9,050 10,623
Loan fees 2,048 2,097
Loan level derivative income, net 4,268 8,262
Gain on investment securities, net 1,970 508
Gain on sales of loans and leases held-for-sale 1,118 1,709
Other 6,190 6,594
Total non-interest income 24,644 29,793
Non-interest expense:  
Compensation and employee benefits 100,985 96,554
Occupancy 15,386 15,696
Equipment and data processing 17,345 18,652
Professional services 5,157 4,366
FDIC insurance 4,229 1,445
Advertising and marketing 4,126 4,044
Amortization of identified intangible assets 1,271 1,663
Merger and restructuring expense - 1,125
Other 12,345 13,936
Total non-interest expense 160,844 157,481
Income before provision for income taxes 62,077 116,029
Provision for income taxes 14,442 28,269
Net income before noncontrolling interest in subsidiary 47,635 87,760
Less net income attributable to noncontrolling interest in subsidiary - 43
Net income attributable to Brookline Bancorp, Inc.$47,635$87,717
Earnings per common share:  
Basic$0.60$1.10
Diluted$0.60$1.10
Weighted average common shares outstanding during the period: 
Basic 78,951,892 79,679,781
Diluted 79,103,289 79,856,921
Dividends paid per common share$0.460$0.440
   


BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Asset Quality Analysis (Unaudited)
 At and for the Three Months Ended
 December 31, 2020September 30, 2020June 30, 2020
March 31, 2020December 31, 2019
 (Dollars in Thousands)
NONPERFORMING ASSETS:     
Loans and leases accounted for on a nonaccrual basis:     
Commercial real estate mortgage$3,300 $10,841 $10,139 $10,937 $2,845 
Multi-family mortgage -  -  -  85  84 
Construction 3,853  -  -  -  - 
Total commercial real estate loans 7,153  10,841  10,139  11,022  2,929 
      
Commercial 7,702  7,751  12,427  12,991  4,909 
Equipment financing 16,757  13,372  13,100  10,356  9,822 
Condominium association 112  117  190  203  151 
Total commercial loans and leases 24,571  21,240  25,717  23,550  14,882 
      
Residential mortgage 5,587  4,634  4,157  3,446  753 
Home equity 1,136  1,235  1,278  1,059  896 
Other consumer 1  2  9  7  1 
Total consumer loans 6,724  5,871  5,444  4,512  1,650 
      
Total nonaccrual loans and leases 38,448  37,952  41,300  39,084  19,461 
      
Other real estate owned 5,415  -  -  -  - 
Other repossessed assets 1,100  1,413  1,454  2,038  2,631 
Total nonperforming assets$44,963 $39,365 $42,754 $41,122 $22,092 
      
Loans and leases past due greater than 90 days and still accruing$11,975 $1,180 $1,974 $1,045 $10,109 
      
Troubled debt restructurings on accrual 11,483  11,309  10,172  16,480  17,076 
Troubled debt restructurings on nonaccrual 7,476  5,742  5,972  5,819  6,104 
Total troubled debt restructurings$18,959 $17,051 $16,144 $22,299 $23,180 
      
Nonperforming loans and leases as a percentage of total loans and leases 0.53% 0.51% 0.56% 0.57% 0.29%
Nonperforming assets as a percentage of total assets 0.50% 0.44% 0.47% 0.49% 0.28%
      
PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:   
Allowance for loan and lease losses at beginning of period$119,971 $119,553 $113,181 $61,082 $59,135 
CECL adjustment to retained earnings -  -  -  6,632  - 
Charge-offs (4,810) (5,511) (1,803) (2,539) (1,894)
Recoveries 429  548  420  305  272 
Net charge-offs (4,381) (4,963) (1,383) (2,234) (1,622)
(Credit) provision for loan and lease losses excluding unfunded commitments * (1,211) 5,381  7,755  47,701  3,569 
Allowance for loan and lease losses at end of period$114,379 $119,971 $119,553 $113,181 $61,082 
      
Allowance for loan and lease losses as a percentage of total loans and leases 1.57% 1.62% 1.61% 1.66% 0.91%
      
NET CHARGE-OFFS:     
Commercial real estate loans$3,444 $70 $(94)$- $- 
Commercial loans and leases 1,011  4,917  1,498  2,280  1,589 
Consumer loans (74) (24) (21) (46) 33 
Total net charge-offs$4,381 $4,963 $1,383 $2,234 $1,622 
      
Net loan and lease charge-offs as a percentage of average loans and leases (annualized) 0.24% 0.27% 0.08% 0.13% 0.10%
      
*provision for loan and lease losses does not include (credit) provision of $(0.9) million, $(0.9) million, $2.4 million and $6.4 million for credit losses on unfunded commitments during the three months ended December 31, 2020, September 30, 2020, June 30, 2020 and March 31, 2020, respectively.
      


BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Average Yields / Costs (Unaudited)
 Three Months Ended
 December 31, 2020September 30, 2020December 31, 2019
 
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)$770,414$3,3341.73%$851,608$3,7461.76%$567,037$2,9572.09%
Marketable and restricted equity securities (2) 51,469 4913.81% 66,154 6704.06% 59,763 8235.51%
Short-term investments 223,665 590.10% 192,446 460.10% 93,997 4181.78%
Total investments 1,045,548 3,8841.49% 1,110,208 4,4621.61% 720,797 4,1982.33%
Loans and Leases:         
Commercial real estate loans (3) 3,833,172 35,5263.63% 3,831,826 35,6153.64% 3,605,169 40,9764.45%
Commercial loans (3) 1,260,883 11,9363.71% 1,281,202 10,6773.27% 826,116 10,0664.78%
Equipment financing (3) 1,086,855 18,6266.86% 1,089,058 19,0186.99% 1,037,431 19,2717.43%
Residential mortgage loans (3) 803,884 7,5303.75% 814,559 7,8603.86% 804,672 8,4024.18%
Other consumer loans (3) 385,818 3,0203.10% 395,990 3,1273.13% 417,950 4,6804.43%
Total loans and leases 7,370,612 76,6384.16% 7,412,635 76,2974.12% 6,691,338 83,3954.99%
Total interest-earning assets 8,416,160 80,5223.83% 8,522,843 80,7593.79% 7,412,135 87,5934.73%
Non-interest-earning assets 458,307   495,829   448,458  
Total assets$8,874,467  $9,018,672  $7,860,593  
          
Liabilities and Stockholders' Equity:         
Interest-bearing liabilities:         
Deposits:         
NOW accounts$451,014 1260.11%$427,009 1280.12%$344,036 1150.13%
Savings accounts 701,378 2450.14% 688,223 2580.15% 604,276 7460.49%
Money market accounts 1,947,686 1,5460.32% 1,855,803 1,6580.36% 1,685,885 4,9471.16%
Certificates of deposit 1,452,867 5,7181.57% 1,536,969 7,0221.82% 1,681,844 9,7252.29%
Brokered deposit accounts 746,281 1,1900.63% 562,112 1,5171.07% 344,909 2,1222.44%
Total interest-bearing deposits 5,299,226 8,8250.66% 5,070,116 10,5830.83% 4,660,950 17,6551.50%
Borrowings:         
Advances from the FHLBB 619,844 2,1181.34% 944,865 2,8761.19% 753,460 4,4072.29%
Subordinated debentures and notes 83,725 1,2455.95% 83,687 1,2465.96% 83,570 1,2936.19%
Other borrowed funds 81,320 540.26% 118,969 610.21% 64,543 1641.01%
Total borrowings 784,889 3,4171.70% 1,147,521 4,1831.43% 901,573 5,8642.55%
Total interest-bearing liabilities 6,084,115 12,2420.80% 6,217,637 14,7660.94% 5,562,523 23,5191.68%
Non-interest-bearing liabilities:         
Demand checking accounts 1,587,618   1,569,411   1,142,600  
Other non-interest-bearing liabilities 265,440   296,992   213,579  
Total liabilities 7,937,173   8,084,040   6,918,702  
Stockholders’ equity 937,294   934,632   941,891  
Total liabilities and equity$8,874,467  $9,018,672  $7,860,593  
Net interest income (tax-equivalent basis) /Interest-rate spread (4)  68,2803.03%  65,9932.85%  64,0743.05%
Less adjustment of tax-exempt income  55   55   143 
Net interest income $68,225  $65,938  $63,931 
Net interest margin (5)  3.23%  3.08%  3.43%
          
(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, 2020December 31, 2019
 
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)$750,689$13,8231.84%$585,360$12,4832.13%
Marketable and restricted equity securities (2) 61,873 2,8624.63% 59,751 3,5165.88%
Short-term investments 186,617 4130.22% 71,090 1,5232.14%
Total investments 999,179 17,0981.71% 716,201 17,5222.45%
Loans and Leases:      
Commercial real estate loans (3) 3,781,201 148,4383.86% 3,492,848 164,0824.63%
Commercial loans (3) 1,140,699 41,3913.57% 817,347 39,8394.81%
Equipment financing (3) 1,074,561 75,5637.03% 1,012,698 74,0667.31%
Residential mortgage loans (3) 810,855 31,3923.87% 783,556 32,9264.20%
Other consumer loans (3) 402,672 13,2553.28% 414,730 19,8354.78%
Total loans and leases 7,209,988 310,0394.30% 6,521,179 330,7485.07%
Total interest-earning assets 8,209,167 327,1373.99% 7,237,380 348,2704.81%
Non-interest-earning assets 474,402   417,254  
Total assets$8,683,569  $7,654,634  
       
Liabilities and Stockholders' Equity:      
Interest-bearing liabilities:      
Deposits:      
NOW accounts$408,374 4840.12%$339,275 4360.13%
Savings accounts 670,217 1,5030.22% 608,022 2,9000.48%
Money market accounts 1,817,085 9,5190.52% 1,682,676 21,2061.26%
Certificates of deposit 1,577,104 30,3551.92% 1,611,389 36,3262.25%
Brokered deposit accounts 512,803 6,5651.28% 344,961 8,7472.54%
Total interest-bearing deposits 4,985,583 48,4260.97% 4,586,323 69,6151.52%
Borrowings:      
Advances from the FHLBB 859,389 12,8421.47% 757,598 18,7012.43%
Subordinated debentures and notes 83,667 5,0386.02% 83,511 5,2066.23%
Other borrowed funds 90,587 3480.38% 79,276 8041.01%
Total borrowings 1,033,643 18,2281.73% 920,385 24,7112.65%
Total interest-bearing liabilities 6,019,226 66,6541.11% 5,506,708 94,3261.71%
Non-interest-bearing liabilities:      
Demand checking accounts 1,451,556   1,070,859  
Other non-interest-bearing liabilities 276,712   159,690  
Total liabilities 7,747,494   6,737,257  
Brookline Bancorp, Inc. stockholders’ equity 936,075   917,286  
Noncontrolling interest in subsidiary -   91  
Total liabilities and equity$8,683,569  $7,654,634  
Net interest income (tax-equivalent basis) /Interest-rate spread (4)  260,4832.88%  253,9443.10%
Less adjustment of tax-exempt income  320   644 
Net interest income $260,163  $253,300 
Net interest margin (5)  3.17%  3.51%
       
(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,
     2020  2019  2020  2019 
Reconciliation Table - Non-GAAP Financial Information (Dollars in Thousands Except Share Data)
       
Net income attributable to Brookline Bancorp, Inc.  $26,663 $22,183 $47,635 $87,717 
Less:       
Security gains (after-tax) -  101  1,511  384 
Add:       
Merger and restructuring-related expenses (after-tax)  -  -  -  851 
Operating earnings   $26,663 $22,082 $46,124 $88,184 
        
Operating earnings per common share:      
Basic   $0.34 $0.28 $0.58 $1.11 
Diluted    0.34  0.28  0.58  1.10 
        
Weighted average common shares outstanding during the period:     
Basic    78,533,351  79,682,724  78,951,892  79,679,781 
Diluted    78,680,873  79,845,447  79,103,289  79,856,921 
        
        
Return on average assets *   1.20% 1.13% 0.55% 1.15%
Less:       
Security gains (after-tax) *   -% 0.01% 0.02% 0.01%
Add:       
Merger and restructuring-related expenses (after-tax) *  -% -% -% 0.01%
Operating return on average assets *   1.20% 1.12% 0.53% 1.15%
        
        
Return on average tangible assets *   1.22% 1.15% 0.56% 1.17%
Less:       
Security gains (after-tax) *   -% 0.01% 0.02% 0.01%
Add:       
Merger and restructuring-related expenses (after-tax) *  -% -% -% 0.01%
Operating return on average tangible assets *   1.22% 1.14% 0.54% 1.17%
        
        
Return on average stockholders' equity *   11.38% 9.42% 5.09% 9.56%
Less:       
Security gains (after-tax) *   -% 0.04% 0.16% 0.04%
Add:       
Merger and restructuring-related expenses (after-tax) *  -% -% -% 0.09%
Operating return on average stockholders' equity *  11.38% 9.38% 4.93% 9.61%
        
        
Return on average tangible stockholders' equity *  13.79% 11.42% 6.17% 11.67%
Less:       
Security gains (after-tax) *   -% 0.05% 0.20% 0.05%
Add:       
Merger and restructuring-related expenses (after-tax) *  -% -% -% 0.11%
Operating return on average tangible stockholders' equity *  13.79% 11.37% 5.97% 11.73%
        
* Ratios at and for the three months ended are annualized.     
        
        
        
        
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Non-GAAP Financial Information (Unaudited)
 At and for the Three Months EndedAt and for the Twelve Months Ended
 December 31,
2020
September 30,
2020
June 30,
2020
March 31,
2020
December 31,
2019
December 31,
2020
December 31,
2019
 (Dollars in Thousands)
        
Net income (loss), as reported$26,663 $18,679 $19,571 $(17,276)$22,183 $47,635 $87,717 
        
Average total assets$8,874,467 $9,018,672 $8,869,540 $7,965,826 $7,860,593 $8,683,569 $7,654,634 
Less: Average goodwill and average identified intangible assets, net 163,758  164,072  164,385  164,701  165,071  164,227  165,697 
Average tangible assets$8,710,709 $8,854,600 $8,705,155 $7,801,125 $7,695,522 $8,519,342 $7,488,937 
        
Return on average tangible assets (annualized) 1.22 % 0.84 % 0.90 % (0.89)% 1.15 % 0.56 % 1.17 %
        
Average total stockholders’ equity$937,294 $934,632 $926,239 $946,138 $941,891 $936,075 $917,286 
Less: Average goodwill and average identified intangible assets, net 163,758  164,072  164,385  164,701  165,071  164,227  165,697 
Average tangible stockholders’ equity$773,536 $770,560 $761,854 $781,437 $776,820 $771,848 $751,589 
        
Return on average tangible stockholders’ equity (annualized) 13.79 % 9.70 % 10.28 % (8.84)% 11.42 % 6.17 % 11.67 %
        
Brookline Bancorp, Inc. stockholders’ equity$941,778 $935,558 $926,413 $912,568 $945,606 $941,778 $945,606 
Less:       
Goodwill 160,427  160,427  160,427  160,427  160,427  160,427  160,427 
Identified intangible assets, net 3,152  3,464  3,775  4,087  4,423  3,152  4,423 
Tangible stockholders' equity$778,199 $771,667 $762,211 $748,054 $780,756 $778,199 $780,756 
        
Total assets$8,942,424 $9,000,192 $9,069,667 $8,461,591 $7,856,853 $8,942,424 $7,856,853 
Less:       
Goodwill 160,427  160,427  160,427  160,427  160,427  160,427  160,427 
Identified intangible assets, net 3,152  3,464  3,775  4,087  4,423  3,152  4,423 
Tangible assets$8,778,845 $8,836,301 $8,905,465 $8,297,077 $7,692,003 $8,778,845 $7,692,003 
        
Tangible stockholders’ equity to tangible assets 8.86 % 8.73 % 8.56 % 9.02 % 10.15 % 8.86 % 10.15 %
        
Tangible stockholders' equity$778,199 $771,667 $762,211 $748,054 $780,756 $778,199 $780,756 
        
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 6,525,783  5,629,854  5,859,708  5,862,811  5,003,127  6,525,783  5,003,127 
Unallocated ESOP shares 51,114  58,227  65,334  72,441  79,548  51,114  79,548 
Unvested restricted shares 458,800  487,318  398,188  395,085  406,450  458,800  406,450 
Number of common shares outstanding 78,141,475  79,001,773  78,853,942  78,846,835  79,688,047  78,141,475  79,688,047 
        
Tangible book value per common share$ 9.96 $ 9.77 $ 9.67 $ 9.49 $ 9.80 $ 9.96 $ 9.80 
        
Allowance for loan and lease losses$114,379 $119,971 $119,553 $113,181 $61,082 $114,379 $61,082 
        
Total loans and leases$7,269,553 $7,396,358 $7,407,697 $6,822,527 $6,737,816 $7,269,553 $6,737,816 
Less:       
Total PPP loans 489,216  568,383  565,768  -  -  489,216  - 
Total loans and leases excluding PPP loans$6,780,337 $6,827,975 $6,841,929 $6,822,527 $6,737,816 $6,780,337 $6,737,816 
        
Allowance for loan and lease losses as a percentage of total loans and leases less PPP loans 1.69 % 1.76 % 1.75 % 1.66 % 0.91 % 1.69 % 0.91 %
        

PDF available: http://ml.globenewswire.com/Resource/Download/e76ed2c8-cf10-4556-a6fa-1c6f41314184 


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