Press Release

Brookline Bancorp Announces First Quarter Results

Company Release - 4/29/2020

Net Loss of $(17.3) million, EPS of $(0.22)

Announces $0.115 Dividend per Share

BOSTON, April 29, 2020 (GLOBE NEWSWIRE) --  Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced net loss of $(17.3) million, or $(0.22) per basic and diluted share, for the first quarter of 2020, compared to net income of $22.2 million, or $0.28 per basic and diluted share, for the fourth quarter of 2019, and net income of $22.5 million, or $0.28 per basic and diluted share, for the first quarter of 2019.

Paul Perrault, President and Chief Executive Officer of the Company noted, “I would like to take a moment to acknowledge the ongoing public health concern surrounding the COVID-19 pandemic. In these unprecedented times, I am thankful for our employees who have risen to the challenge of providing support for our customers and our communities.”

On March 27, 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) which, among other things, provides small business borrowers with several options for relief including automatic payment deferrals from the Small Business Administration (the “SBA”) and additional funding options pursuant to the Paycheck Protection Program (“PPP”).  PPP loans were made available beginning on April 3, 2020 through approved SBA lenders, including the Company’s subsidiary banks, Brookline Bank and Bank Rhode Island. Brookline Bank and Bank Rhode Island immediately began accepting loan applications pursuant to the PPP program on April 3, 2020. The initial PPP funding provided by Congress was exhausted as of April 16 at which time, together, Brookline Bank and Bank Rhode Island made 2,183 loans totaling $518 million.  In addition to providing access to the PPP program, the Company has been proactively working with commercial and consumer customers and providing relief options including payment deferrals and fee waivers where appropriate.

BALANCE SHEET

Total assets at March 31, 2020 increased $604.7 million to $8.5 billion from $7.9 billion at December 31, 2019, and increased $942.5 million from $7.5 billion at March 31, 2019. At March 31, 2020, total loans and leases were $6.8 billion, representing an increase of $84.7 million from December 31, 2019, and an increase of $434.3 million from March 31, 2019, primarily driven by growth in the commercial real estate portfolio.

Investment securities at March 31, 2020 increased $174.7 million to $764.1 million, as compared to $589.4 million at December 31, 2019, and increased approximately $157.0 million from $607.1 million at March 31, 2019. Cash and cash equivalents at March 31, 2020 increased $263.0 million to $340.8 million, as compared to $77.8 million at December 31, 2019, and increased $228.4 million from $112.3 million at March 31, 2019. As of March 31, 2020, securities, cash and cash equivalents represented 13.1 percent of total assets as compared to 8.5 percent and 9.6 percent as of December 31, 2019 and March 31, 2019, respectively.

Total deposits at March 31, 2020 increased $59.9 million from $5.8 billion at December 31, 2019 to $5.9 billion and increased $269.3 million from $5.6 billion at March 31, 2019.

Total borrowed funds at March 31, 2020 increased $389.1 million to $1.3 billion from $902.7 million at December 31, 2019 and increased $425.8 million from $866.0 million at March 31, 2019.

The ratio of stockholders’ equity to total assets was 10.78 percent at March 31, 2020, as compared to 12.04 percent at December 31, 2019, and 11.98 percent at March 31, 2019. The ratio of tangible stockholders’ equity to tangible assets was 9.02 percent at March 31, 2020, as compared to 10.15 percent at December 31, 2019, and 9.99 percent at March 31, 2019. Tangible book value per share decreased $0.31 from $9.80 at December 31, 2019 to $9.49 at March 31, 2020, compared to $9.22 at March 31, 2019.

NET INTEREST INCOME

Net interest income decreased $2.2 million to $61.7 million during the first quarter of 2020 from $63.9 million at the quarter ended December 31, 2019. The net interest margin decreased 12 basis points to 3.31 percent for the three months ended March 31, 2020.

NON-INTEREST INCOME

Non-interest income for the quarter ended March 31, 2020 increased $1.5 million to $9.3 million from $7.8 million for the quarter ended December 31, 2019. The increase was primarily driven by increases of  $1.2 million in gain on investment securities, net and $1.1 million in other non-interest income, partially offset by decreases of $0.3 million in deposit fees, $0.3 million in loan level derivative income, net and $0.2 million in gain on sales of loans and leases.

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 is using a third-party provided loss estimation model, which calculates the effects of various third-party economic forecasts using the Company's loan portfolio characteristics to determine potential losses over the remaining lifetime of the loans consistent with the requirements of CECL.

Upon adoption of CECL on January 1, 2020, the allowance for loan losses increased $6.6 million, and the reserve for unfunded commitments increased $9.0 million for a combined increase of $15.6 million for the allowance for credit losses ("ACL"). The after tax impact of $11.7 million or $0.15 per share was recognized as a reduction to retained earnings, representing the cumulative effective adjustment from a change in accounting policies.

 For the first quarter of 2020,  the latest available forecast was used to evaluate the economic effects of the COVID-19 pandemic on the Company’s loan portfolios which resulted in the Company recording a provision for credit losses of  $54.1 million for the quarter ended March 31, 2020, compared to $3.6 million for the quarter ended December 31, 2019.  Other than one large credit, asset quality was consistent during quarter and the increase in provision was primarily driven by the forecasted economic effect of the COVID-19 pandemic.

Total net charge-offs for the first quarter of 2020 were $2.2 million compared to $1.6 million in the fourth quarter of 2019. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis increased to 13 basis points for the first quarter of 2020 from 10 basis points for the fourth quarter of 2019.

The allowance for loan and lease losses increased $45.5 million from January 1, 2020 and $52.1 million from December 31, 2019 and represented 1.66 percent of total loans and leases at March 31, 2020, compared to 0.91 percent at December 31, 2019, and 0.91 percent at March 31, 2019.

NON-INTEREST EXPENSE

Non-interest expense for the quarter ended March 31, 2020 increased $1.9 million to $40.7 million from $38.8 million for the quarter ended December 31, 2019. The increase was primarily driven by increases of $1.2 million in compensation and employee benefits expense, $0.5 million in professional services expense, $0.3 million in FDIC insurance expense, and $0.2 million in advertising and marketing expense, partially offset by a decrease of $0.3 million in other non-interest expense.

PROVISION FOR INCOME TAXES

The effective tax rate was 27.5 percent and 24.2 percent for the three months ended March 31, 2020 and December 31, 2019, respectively. The increase in effective tax rate was driven by the tax benefit recognition for the net operating loss carryback of the First Common Bank acquisition as a result of the Coronavirus Aid, Relief and Economic Security Act (the CARES Act).

RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

The annualized return on average assets decreased to a negative 0.87 percent during the first quarter of 2020 from a positive 1.13 percent for the fourth quarter of 2019.

The annualized return on average stockholders' equity decreased to a negative 7.30 percent during the first quarter of 2020 from 9.42 percent for the fourth quarter of 2019. The annualized return on average tangible stockholders’ equity decreased to a negative 8.84 percent for the first quarter of 2020 from 11.42 percent for the fourth quarter of 2019.

ASSET QUALITY

The ratio of nonperforming loans and leases to total loans and leases was 0.57 percent at March 31, 2020, an increase from 0.29 percent at December 31, 2019. Nonperforming loans and leases increased $19.6 million to $39.1 million at March 31, 2020 from $19.5 million at December 31, 2019. The increase was primarily driven by the inclusion of $9.7 million of acquired impaired credits under the new accounting standard and  one commercial relationship of $8.5 million that was placed on nonaccural in the first quarter. The ratio of nonperforming assets to total assets was 0.49 percent at March 31, 2020, an increase from 0.28 percent at December 31, 2019. Nonperforming assets increased $19.0 million to $41.1 million at March 31, 2020 from $22.1 million at December 31, 2019.

Nonaccrual loans increased $19.6 million from December 31, 2019 to $39.1 million. The increase was primarily driven by the implementation of CECL, which required purchase credit-impaired loans to be classified as non-accruing based on performance as well as one commercial relationship of $8.5 million placed on nonaccrual during the first quarter.

DIVIDEND DECLARED

The Company’s Board of Directors approved a dividend of $0.115 per share for the quarter ended March 31, 2020. The dividend will be paid on May 29, 2020 to stockholders of record on May 15, 2020.

CONFERENCE CALL

The Company will conduct a conference call/webcast at 1:30 PM Eastern Daylight Time on Thursday, April 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) or by visiting https://services.choruscall.com/links/brkl200430.html.  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 10142047. 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 $8.5 billion in assets and branch locations in Massachusetts and Rhode Island, is headquartered in Boston, Massachusetts and operates as the holding company for Brookline Bank and Bank Rhode Island (the "banks"). The Company provides commercial and retail banking services, cash management and investment services to customers throughout Central New England. More information about Brookline Bancorp, Inc. and its banks can be found at the following websites: www.brooklinebank.com and www.bankri.com.

FORWARD-LOOKING STATEMENTS

Certain statements contained in this press release that are not historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements contained in this press release that do not describe historical or current facts are forward-looking statements, including statements regard the potential effects of COVID-19 on the Company’s business, credit quality, financial condition, liquidity and results of operations. Forward-looking statements made with regard to the potential effects of 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 economic conditions on a national basis and in the local markets in which the Company operates; changes in consumer behavior due to changing business and economic conditions or legislative or regulatory initiatives; reputational risk relating to the Company’s participation in the Paycheck Protection Program and other pandemic-related legislative and regulatory initiatives and programs; and continued turbulence in capital and debt markets. Forward-looking statements involve risks and uncertainties which are difficult to predict. The Company’s actual results could differ materially from those projected in the forward-looking statements as a result of, among others, the risks outlined in the Company’s Annual Report on Form 10-K, as updated by its Quarterly Reports on Form 10-Q and other filings submitted to the Securities and Exchange Commission ("SEC"). The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.

BASIS OF PRESENTATION

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

NON-GAAP FINANCIAL MEASURES

The Company uses certain non-GAAP financial measures, such as operating earnings, operating return on average assets, operating return on average tangible assets, operating return on average stockholders' equity, operating return on average tangible stockholders' equity, the allowance for loan and lease losses 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 (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 

MEDIA INQUIRIES:

Contact:
Karen Schwartzman
Polaris Public Relations
(617) 437-9990

A PDF accompanying this announcement is available at http://ml.globenewswire.com/Resource/Download/d63fc230-2142-4310-aaa1-3f291c604c05

 
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Selected Financial Highlights (Unaudited)
 
 At and for the Three Months Ended
 March 31,
2020
 December 31,
2019
 September 30,
2019
 June 30,
2019
 March 31,
2019
  
 (Dollars In Thousands Except per Share Data)
Earnings Data:         
Net interest income$61,712  $63,931  $63,236  $63,134  $62,999 
Provision for credit losses 54,114   3,602   871   3,757   1,353 
Non-interest income 9,328   7,756   7,929   7,478   6,630 
Non-interest expense 40,748   38,815   40,191   39,604   38,871 
(Loss) income before provision for income taxes (23,822)  29,270   30,103   27,251   29,405 
Net (loss) income attributable to Brookline Bancorp, Inc. (17,276)  22,183   22,596   20,471   22,467 
          
Performance Ratios:         
Net interest margin (1) 3.31%  3.43%  3.45%  3.55%  3.64%
Interest-rate spread (1) 2.91%  3.05%  3.06%  3.13%  3.18%
Return on average assets (annualized) (0.87)%  1.13%  1.17%  1.08%  1.21%
Return on average tangible assets (annualized) (non-GAAP) (0.89)%  1.15%  1.19%  1.11%  1.24%
Return on average stockholders' equity (annualized) (7.30)%  9.42%  9.74%  8.98%  10.14%
Return on average tangible stockholders' equity (annualized) (non-GAAP) (8.84)%  11.42%  11.85%  10.98%  12.48%
Efficiency ratio (2) 57.36%  54.15%  56.48%  56.09%  55.83%
          
Per Common Share Data:         
Net (loss) income — Basic$(0.22) $0.28  $0.28  $0.26  $0.28 
Net (loss) income — Diluted (0.22)  0.28   0.28   0.26   0.28 
Cash dividends declared 0.115   0.115   0.115   0.110   0.110 
Book value per share (end of period) 11.57   11.87   11.70   11.53   11.30 
Tangible book value per share (end of period) (non-GAAP) 9.49   9.80   9.63   9.45   9.22 
Stock price (end of period) 11.28   16.46   14.73   15.38   14.40 
Balance Sheet:         
Total assets$8,461,591  $7,856,853  $7,878,436  $7,636,980  $7,519,130 
Total loans and leases 6,822,527   6,737,816   6,646,821   6,505,329   6,388,197 
Total deposits 5,889,938   5,830,072   5,729,339   5,622,493   5,620,633 
Brookline Bancorp, Inc. stockholders’ equity 912,568   945,606   932,311   918,468   900,572 
          
Asset Quality:         
Nonperforming assets$41,122  $22,092  $23,760  $23,267  $26,721 
Nonperforming assets as a percentage of total assets 0.49%  0.28%  0.30%  0.30%  0.36%
Allowance for loan and lease losses$113,181  $61,082  $59,135  $58,635  $58,041 
Allowance for loan and lease losses as a percentage of total loans and leases 1.66%  0.91%  0.89%  0.90%  0.91%
Net loan and lease charge-offs$2,234  $1,622  $366  $3,082  $2,101 
Net loan and lease charge-offs as a percentage of average loans and leases (annualized) 0.13%  0.10%  0.02%  0.19%  0.13%
          
Capital Ratios:         
Stockholders’ equity to total assets 10.78%  12.04%  11.83%  12.03%  11.98%
Tangible stockholders’ equity to tangible assets (non-GAAP) 9.02%  10.15%  9.94%  10.08%  9.99%
          
(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, 2020 December 31,
2019
 September 30,
2019
 June 30, 2019 March 31, 2019
  
ASSETS(In Thousands Except Share Data)
Cash and due from banks$86,996  $33,589  $93,841  $46,532  $51,276 
Short-term investments 253,772   44,201   84,689   46,264   61,063 
Total cash and cash equivalents 340,768   77,790   178,530   92,796   112,339 
Investment securities available-for-sale 761,539   498,995   467,339   482,497   489,020 
Investment securities held-to-maturity    86,780   95,163   103,572   113,694 
Equity securities held-for-trading 2,558   3,581   4,581   4,698   4,341 
Total investment securities 764,097   589,356   567,083   590,767   607,055 
Loans and leases held-for-sale          1,575   869 
Loans and leases:         
Commercial real estate loans 3,762,158   3,669,222   3,589,451   3,493,554   3,410,468 
Commercial loans and leases 1,826,866   1,838,748   1,850,388   1,826,336   1,786,582 
Consumer loans 1,233,503   1,229,846   1,206,982   1,185,439   1,191,147 
Total loans and leases 6,822,527   6,737,816   6,646,821   6,505,329   6,388,197 
Allowance for loan and lease losses (113,181)  (61,082)  (59,135)  (58,635)  (58,041)
Net loans and leases 6,709,346   6,676,734   6,587,686   6,446,694   6,330,156 
Restricted equity securities 68,472   53,818   57,896   55,270   54,192 
Premises and equipment, net of accumulated depreciation 73,786   74,350   75,229   75,373   75,520 
Right-of-use asset operating leases 24,789   24,876   26,216   25,928   26,205 
Deferred tax asset 38,141   25,017   25,204   25,629   27,084 
Goodwill 160,427   160,427   160,427   160,427   160,427 
Identified intangible assets, net of accumulated amortization 4,087   4,423   4,843   5,264   5,684 
Other real estate owned and repossessed assets 2,038   2,631   2,132   1,966   3,912 
Other assets 275,640   167,431   193,190   155,291   115,687 
   Total assets$8,461,591  $7,856,853  $7,878,436  $7,636,980  $7,519,130 
LIABILITIES AND STOCKHOLDERS' EQUITY         
Deposits:         
Demand checking accounts$1,175,329  $1,141,578  $1,106,684  $1,042,854  $1,011,031 
NOW accounts 361,854   371,380   340,321   340,082   369,896 
Savings accounts 653,026   613,467   604,481   585,322   625,770 
Money market accounts 1,676,092   1,682,005   1,666,231   1,669,782   1,706,708 
Certificate of deposit accounts 2,023,637   2,021,642   2,011,622   1,984,453   1,907,228 
Total deposits 5,889,938   5,830,072   5,729,339   5,622,493   5,620,633 
Borrowed funds:         
Advances from the FHLBB 1,137,431   758,469   854,481   791,559   730,018 
Subordinated debentures and notes 83,630   83,591   83,551   83,512   83,472 
Other borrowed funds 70,743   60,689   48,373   55,693   52,515 
Total borrowed funds 1,291,804   902,749   986,405   930,764   866,005 
Operating lease liabilities 24,789   24,876   26,216   25,928   26,205 
Mortgagors’ escrow accounts 7,441   7,232   7,072   6,823   7,517 
Reserve for unfunded credits 17,222   1,880   1,847   1,841   1,760 
Accrued expenses and other liabilities 317,829   144,438   195,246   130,663   96,438 
Total liabilities 7,549,023   6,911,247   6,946,125   6,718,512   6,618,558 
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 737,422   736,601   735,928   737,584   736,872 
Retained earnings, partially restricted 227,359   265,376   252,435   238,625   226,929 
Accumulated other comprehensive income (loss) 16,947   2,283   2,775   1,141   (4,393)
Treasury stock, at cost;         
5,862,811 shares, 5,003,127 shares, 5,003,127 shares, 5,025,764 shares, and 5,020,025 shares, respectively (69,617)  (59,073)  (59,176)  (59,199)  (59,121)
Unallocated common stock held by the Employee Stock Ownership Plan;         
72,441 shares, 79,548 shares, 92,337 shares, 98,208 shares, and 104,079 shares, respectively (395)  (433)  (503)  (535)  (567)
Total stockholders' equity 912,568   945,606   932,311   918,468   900,572 
Total liabilities and stockholders' equity$8,461,591  $7,856,853  $7,878,436  $7,636,980  $7,519,130 
          


BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
 Three Months Ended
 March 31, 2020 December 31, 2019 September 30,
2019
 June 30, 2019 March 31, 2019
 (In Thousands Except Share Data)
Interest and dividend income:         
Loans and leases$79,559  $83,309 $83,566  $82,798 $80,672
Debt securities 2,976   2,910  2,977   3,158  3,236
Marketable and restricted equity securities 778   813  876   877  911
Short-term investments 209   418  487   351  267
Total interest and dividend income 83,522   87,450  87,906   87,184  85,086
Interest expense:         
Deposits 16,240   17,655  18,300   17,712  15,948
Borrowed funds 5,570   5,864  6,370   6,338  6,139
Total interest expense 21,810   23,519  24,670   24,050  22,087
Net interest income 61,712   63,931  63,236   63,134  62,999
Provision for credit losses 54,114   3,602  871   3,757  1,353
Net interest income after provision for credit losses 7,598   60,329  62,365   59,377  61,646
Non-interest income:         
Deposit fees 2,458   2,710  2,710   2,680  2,523
Loan fees 550   567  719   398  413
Loan level derivative income, net 2,156   2,494  2,251   1,772  1,745
Gain (loss) on investment securities, net 1,330   133  (116)  357  134
Gain on sales of loans and leases held-for-sale 120   309  550   561  289
Other 2,714   1,543  1,815   1,710  1,526
Total non-interest income 9,328   7,756  7,929   7,478  6,630
Non-interest expense:         
Compensation and employee benefits 25,219   23,987  24,871   23,953  23,743
Occupancy 3,953   4,102  3,895   3,752  3,947
Equipment and data processing 4,703   4,601  4,749   4,641  4,661
Professional services 1,651   1,120  1,083   1,087  1,076
FDIC insurance 378   53  54   745  593
Advertising and marketing 1,075   828  1,035   1,112  1,069
Amortization of identified intangible assets 336   420  421   420  402
Merger and restructuring expense      1,125     
Other 3,433   3,704  2,958   3,894  3,380
Total non-interest expense 40,748   38,815  40,191   39,604  38,871
(Loss) income before provision for income taxes (23,822)  29,270  30,103   27,251  29,405
(Benefit) provision for income taxes (6,546)  7,087  7,507   6,780  6,895
Net (loss) income before noncontrolling interest in subsidiary (17,276)  22,183  22,596   20,471  22,510
Less net income attributable to noncontrolling interest in subsidiary           43
Net (loss) income attributable to Brookline Bancorp, Inc.$(17,276) $22,183 $22,596  $20,471 $22,467
Earnings per common share:         
Basic$(0.22) $0.28 $0.28  $0.26 $0.28
Diluted$(0.22) $0.28 $0.28  $0.26 $0.28
Weighted average common shares outstanding during the period:        
Basic 79,481,462   79,682,724  79,700,403   79,669,922  79,658,583
Diluted 79,665,774   79,845,447  79,883,510   79,886,292  79,843,578
Dividends paid per common share$0.115  $0.115 $0.110  $0.110 $0.105


BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Asset Quality Analysis (Unaudited)
 At and for the Three Months Ended
 March 31, 2020 December 31, 2019 September 30,
2019
 June 30, 2019 March 31, 2019
  
 (Dollars in Thousands)
NONPERFORMING ASSETS:         
Loans and leases accounted for on a nonaccrual basis:         
Commercial real estate mortgage$10,937  $2,845  $2,910  $2,273  $2,889 
Multi-family mortgage 85   84   87   94   101 
Construction             396 
Total commercial real estate loans 11,022   2,929   2,997   2,367   3,386 
          
Commercial 12,991   4,909   3,139   6,349   5,728 
Equipment financing 10,356   9,822   12,817   9,931   10,253 
Condominium association 203   151   163   170   224 
Total commercial loans and leases 23,550   14,882   16,119   16,450   16,205 
          
Residential mortgage 3,446   753   1,605   1,642   2,188 
Home equity 1,059   896   904   835   1,022 
Other consumer 7   1   3   7   8 
Total consumer loans 4,512   1,650   2,512   2,484   3,218 
          
Total nonaccrual loans and leases 39,084   19,461   21,628   21,301   22,809 
          
Other real estate owned       201   957   3,054 
Other repossessed assets 2,038   2,631   1,931   1,009   858 
Total nonperforming assets$41,122  $22,092  $23,760  $23,267  $26,721 
          
Loans and leases past due greater than 90 days and still accruing$10,153  $10,109  $11,885  $11,612  $16,800 
          
Troubled debt restructurings on accrual 16,480   17,076   22,233   27,761   28,543 
Troubled debt restructurings on nonaccrual 5,819   6,104   5,763   8,431   7,597 
Total troubled debt restructurings$22,299  $23,180  $27,996  $36,192  $36,140 
          
Nonperforming loans and leases as a percentage of total loans and leases 0.57%  0.29%  0.33%  0.33%  0.36%
Nonperforming assets as a percentage of total assets 0.49%  0.28%  0.30%  0.30%  0.36%
          
PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:      
Allowance for loan and lease losses at beginning of period$61,082  $59,135  $58,635  $58,041  $58,692 
CECL adjustment to retained earnings 6,632             
Charge-offs (2,539)  (1,894)  (1,190)  (3,412)  (2,542)
Recoveries 305   272   824   330   441 
Net charge-offs (2,234)  (1,622)  (366)  (3,082)  (2,101)
Provision for loan and lease losses excluding unfunded commitments * 47,701   3,569   866   3,676   1,450 
Allowance for loan and lease losses at end of period$113,181  $61,082  $59,135  $58,635  $58,041 
          
Allowance for loan and lease losses as a percentage of total loans and leases 1.66%  0.91%  0.89%  0.90%  0.91%
          
NET CHARGE-OFFS:         
Commercial loans and leases 2,280   1,589   403   3,107   2,124 
Consumer loans (46)  33   (37)  (25)  (23)
Total net charge-offs$2,234  $1,622  $366  $3,082  $2,101 
          
Net loan and lease charge-offs as a percentage of average loans and leases (annualized) 0.13%  0.10%  0.02%  0.19%  0.13%
          
*provision for loan and lease losses does not include provision of $6.4 million for credit losses on unfunded commitments during the three months ended March 31, 2020.         


BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Average Yields / Costs (Unaudited)
 Three Months Ended
 March 31, 2020 December 31, 2019 March 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)$605,885 $3,024 2.00% $567,037 $2,957 2.09% $608,194 $3,289 2.16%
Marketable and restricted equity securities (2) 58,881  786 5.33%  59,763  823 5.51%  60,389  920 6.10%
Short-term investments 84,309  209 0.99%  93,997  418 1.78%  33,034  267 3.23%
Total investments 749,075  4,019 2.15%  720,797  4,198 2.33%  701,617  4,476 2.55%
Loans and Leases:                 
Commercial real estate loans (3) 3,697,011  40,468 4.33%  3,605,169  40,976 4.45%  3,376,576  40,019 4.74%
Commercial loans (3) 783,309  8,328 4.21%  826,116  10,066 4.78%  792,695  9,603 4.85%
Equipment financing (3) 1,052,846  18,946 7.20%  1,037,431  19,271 7.43%  988,193  17,985 7.28%
Residential mortgage loans (3) 810,583  7,934 3.92%  804,672  8,402 4.18%  778,325  8,123 4.17%
Other consumer loans (3) 417,815  3,955 3.79%  417,950  4,680 4.43%  408,177  5,051 5.01%
Total loans and leases 6,761,564  79,631 4.71%  6,691,338  83,395 4.99%  6,343,966  80,781 5.09%
Total interest-earning assets 7,510,639  83,650 4.46%  7,412,135  87,593 4.73%  7,045,583  85,257 4.84%
Non-interest-earning assets 455,187      448,458      388,455    
Total assets$7,965,826     $7,860,593     $7,434,038    
                  
Liabilities and Stockholders' Equity:                 
Interest-bearing liabilities:                 
Deposits:                 
NOW accounts$359,641  116 0.13% $344,036  115 0.13% $334,167  142 0.17%
Savings accounts 626,945  643 0.41%  604,276  746 0.49%  626,414  597 0.39%
Money market accounts 1,678,649  4,241 1.02%  1,685,885  4,947 1.16%  1,676,199  5,275 1.28%
Certificates of deposit 2,040,903  11,240 2.22%  2,026,753  11,847 2.32%  1,844,511  9,934 2.18%
Total interest-bearing deposits 4,706,138  16,240 1.39%  4,660,950  17,655 1.50%  4,481,291  15,948 1.44%
Borrowings                 
Advances from the FHLBB 772,462  4,097 2.10%  753,460  4,407 2.29%  755,542  4,610 2.44%
Subordinated debentures and notes 83,609  1,284 6.14%  83,570  1,293 6.19%  83,451  1,308 6.27%
Other borrowed funds 91,052  189 0.84%  64,543  164 1.01%  88,600  221 1.01%
Total borrowings 947,123  5,570 2.33%  901,573  5,864 2.55%  927,593  6,139 2.65%
Total interest-bearing liabilities 5,653,261  21,810 1.55%  5,562,523  23,519 1.68%  5,408,884  22,087 1.66%
Non-interest-bearing liabilities:                 
Demand checking accounts 1,134,314      1,142,600      1,026,970    
Other non-interest-bearing liabilities 232,113      213,579      111,174    
Total liabilities 7,019,688      6,918,702      6,547,028    
Stockholders’ equity 946,138      941,891      886,639    
Noncontrolling interest in subsidiary             371    
Total liabilities and equity$7,965,826     $7,860,593     $7,434,038    
Net interest income (tax-equivalent basis) /Interest-rate spread (4)   61,840 2.91%    64,074 3.05%    63,170 3.18%
Less adjustment of tax-exempt income   128      143      171  
Net interest income  $61,712     $63,931     $62,999  
Net interest margin (5)    3.31%     3.43%     3.64%
                  
(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)
       At and for the Three Months Ended 
 March 31,
        2020   2019 
       
Reconciliation Table - Non-GAAP Financial Information     (Dollars in Thousands Except Share Data)
         
Net (loss) income attributable to Brookline Bancorp, Inc.     $(17,276) $22,467 
Less:         
Security gains (after-tax)      964   103 
Operating earnings      $(18,240) $22,364 
          
Operating earnings per common share:         
Basic      $(0.23) $0.28 
Diluted       (0.23)  0.28 
          
Weighted average common shares outstanding during the period:        
Basic       79,481,462   79,658,583 
Diluted       79,665,774   79,843,578 
          
          
Return on average assets *      (0.87)%  1.21%
Less:         
Security gains (after-tax) *      0.05%  0.01%
Operating return on average assets *      (0.92)%  1.20%
          
          
Return on average tangible assets *      (0.89)%  1.24%
Less:         
Security gains (after-tax) *      0.05%  0.01%
Operating return on average tangible assets *      (0.94)%  1.23%
          
          
Return on average stockholders' equity *      (7.30)%  10.14%
Less:         
Security gains (after-tax) *      0.41%  0.05%
Operating return on average stockholders' equity *      (7.71)%  10.09%
          
          
Return on average tangible stockholders' equity *      (8.84)%  12.48%
Less:         
Security gains (after-tax) *      0.49%  0.06%
Operating return on average tangible stockholders' equity *      (9.33)%  12.42%
          
* Ratios at and for the three months ended are annualized.        


 At and for the Three Months Ended
 March 31,
2020
 December 31,
2019
 September 30,
2019
 June 30,
2019
 March 31,
2019
  
 (Dollars in Thousands)
          
Net (loss) income, as reported$(17,276) $22,183  $22,596  $20,471  $22,467 
          
Average total assets$7,965,826  $7,860,593  $7,746,492  $7,571,396  $7,434,038 
Less: Average goodwill and average identified intangible assets, net 164,701   165,071   165,493   165,914   166,327 
Average tangible assets$7,801,125  $7,695,522  $7,580,999  $7,405,482  $7,267,711 
          
Return on average tangible assets (annualized) (0.89)%  1.15 %  1.19 %  1.11 %  1.24 %
          
Average total stockholders’ equity$946,138  $941,891  $928,063  $911,824  $886,639 
Less: Average goodwill and average identified intangible assets, net 164,701   165,071   165,493   165,914   166,327 
Average tangible stockholders’ equity$781,437  $776,820  $762,570  $745,910  $720,312 
          
Return on average tangible stockholders’ equity (annualized) (8.84)%  11.42 %  11.85 %  10.98 %  12.48 %
          
Brookline Bancorp, Inc. stockholders’ equity$912,568  $945,606  $932,311  $918,468  $900,572 
Less:         
Goodwill 160,427   160,427   160,427   160,427   160,427 
Identified intangible assets, net 4,087   4,423   4,843   5,264   5,684 
Tangible stockholders' equity$748,054  $780,756  $767,041  $752,777  $734,461 
          
Total assets$8,461,591  $7,856,853  $7,878,436  $7,636,980  $7,519,130 
Less:         
Goodwill 160,427   160,427   160,427   160,427   160,427 
Identified intangible assets, net 4,087   4,423   4,843   5,264   5,684 
Tangible assets$8,297,077  $7,692,003  $7,713,166  $7,471,289  $7,353,019 
          
Tangible stockholders’ equity to tangible assets 9.02 %  10.15 %  9.94 %  10.08 %  9.99 %
          
Tangible stockholders' equity$748,054  $780,756  $767,041  $752,777  $734,461 
          
Number of common shares issued 85,177,172   85,177,172   85,177,172   85,177,172   85,177,172 
Less:         
Treasury shares 5,862,811   5,003,127   5,003,127   5,025,764   5,020,025 
Unallocated ESOP shares 72,441   79,548   92,337   98,208   104,079 
Unvested restricted shares 395,085   406,450   407,784   377,122   390,636 
Number of common shares outstanding 78,846,835   79,688,047   79,673,924   79,676,078   79,662,432 
          
Tangible book value per common share$  9.49    $  9.80    $  9.63    $  9.45    $  9.22   
                    

BrookBancorp_2c.jpg

Source: Brookline Bancorp, Inc.