Press Release

Brookline Bancorp Announces First Quarter Results

Company Release - 4/28/2021

Net Income of $26.5 million, EPS of $0.34

Quarterly Dividend Increase of 4.3%

BOSTON, April 28, 2021 (GLOBE NEWSWIRE) -- Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced net income of $26.5 million, or $0.34 per basic and diluted share, for the first quarter of 2021, compared to net income of $26.7 million, or $0.34 per basic and diluted share, for the fourth quarter of 2020, and net loss of $(17.3) million, or $(0.22) per basic and diluted share, for the first quarter of 2020.

“Our Company’s solid performance continued in the first quarter and I am pleased to announce an increase in our dividend to $0.12 per share,” Paul Perrault, President and Chief Executive Officer of the Company continued, “We are proud of the work that our employees have done in supporting our customers and communities over the past year and we look forward to a continued strong performance for the remainder of the year.”

BALANCE SHEET

Total assets at March 31, 2021 decreased $382.6 million to $8.6 billion from $8.9 billion at December 31, 2020, and increased $98.2 million from $8.5 billion at March 31, 2020. At March 31, 2021, total loans and leases were $7.3 billion, representing a decrease of $2.0 million from December 31, 2020, and an increase of $445.0 million from March 31, 2020.

On December 27, 2020, the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (the “Economic Aid Act”) was signed into law. The Economic Aid Act created a new round of Paycheck Protection Program (“PPP”) loans administered by the Small Business Administration (“SBA”). The Company participated in the new round of PPP lending and, as of March 31, 2021, has funded 1,342 PPP loans totaling $249.5 million. The Company funded 2,922 PPP loans totaling $581.7 million in the first two rounds of PPP funding which closed on August 8, 2020, of which $355.3 million remains outstanding, net of deferred fees and costs, at March 31, 2021.

Total investment securities at March 31, 2021 decreased $15.9 million to $730.4 million from $746.3 million at December 31, 2020, and decreased $33.7 million from $764.1 million at March 31, 2020. Total cash and cash equivalents at March 31, 2021 decreased $304.0 million to $130.9 million from $434.9 million at December 31, 2020, and decreased $209.8 million from $340.8 million at March 31, 2020. As of March 31, 2021, total investment securities and total cash and cash equivalents represented 10.1 percent of total assets as compared to 13.2 percent and 13.1 percent as of December 31, 2020 and March 31, 2020, respectively.

Total deposits at March 31, 2021 decreased $43.9 million to $6.87 billion from $6.91 billion at December 31, 2020 and increased $1.0 billion from $5.9 billion at March 31, 2020.

Total borrowed funds at March 31, 2021 decreased $274.2 million to $546.0 million from $820.2 million at December 31, 2020 and decreased $745.8 million from $1.3 billion at March 31, 2020.

The ratio of stockholders’ equity to total assets was 11.04 percent at March 31, 2021, as compared to 10.53 percent at December 31, 2020, and 10.78 percent at March 31, 2020. The ratio of tangible stockholders’ equity to tangible assets (non-GAAP) was 9.31 percent at March 31, 2021, as compared to 8.86 percent at December 31, 2020, and 9.02 percent at March 31, 2020. Tangible book value per share (non-GAAP) increased $0.05 from $9.96 at December 31, 2020 to $10.01 at March 31, 2021, compared to $9.49 at March 31, 2020.

NET INTEREST INCOME

Net interest income increased $0.9 million to $69.1 million during the first quarter of 2021 from $68.2 million at the quarter ended December 31, 2020. The net interest margin increased 16 basis points to 3.39 percent for the three months ended March 31, 2021 from 3.23 percent for the three months ended December 31, 2020.

NON-INTEREST INCOME

Total non-interest income for the quarter ended March 31, 2021 increased $0.6 million to $4.8 million from $4.2 million for the quarter ended December 31, 2020. The increase was primarily driven by an increase of $0.6 million in gain on sales of loans and leases and an increase of $0.3 million in loan level derivative income, net, partially offset by a decrease of $0.3 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 March 31, 2021, compared to a negative provision for credit losses of $2.1 million for the quarter ended December 31, 2020.

Total net charge-offs for the first quarter of 2021 were $1.8 million compared to $4.4 million in the fourth quarter of 2020. The decrease is primarily driven by a decrease of $3.4 million in the net charge-offs of commercial real estate loans, partially offset by an increase in the net charge-offs of commercial loans and equipment financing of $0.3 million and $0.5 million, respectively. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis decreased to 10 basis points for the first quarter of 2021 from 24 basis points for the fourth quarter of 2020.

The allowance for loan and lease losses represented 1.51 percent of total loans and leases at March 31, 2021, compared to 1.57 percent at December 31, 2020, and 1.66 percent at March 31, 2020. Excluding PPP loans, the allowance for loan and lease losses represents 1.65 percent coverage at March 31, 2021 compared to 1.69 percent at December 31, 2020.

ASSET QUALITY

The ratio of nonperforming loans and leases to total loans and leases was 0.43 percent at March 31, 2021, a decrease from 0.53 percent at December 31, 2020. Total nonaccrual loans and leases decreased $7.4 million to $31.0 million at March 31, 2021 from $38.4 million at December 31, 2020. The ratio of nonperforming assets to total assets was 0.44 percent at March 31, 2021, a decrease from 0.50 percent at December 31, 2020. Total nonperforming assets decreased $7.6 million to $37.4 million at March 31, 2021 from $45.0 million at December 31, 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 March 31, 2021, approximately 88 percent of loans granted an initial loan payment deferral have returned to payment status and 341 credits totaling $126 million or 1.7 percent of total loans outstanding are operating under modified terms.

NON-INTEREST EXPENSE

Non-interest expense for the quarter ended March 31, 2021 increased $0.8 million to $40.8 million from $40.0 million for the quarter ended December 31, 2020. The increase was primarily driven by increases of $0.8 million in compensation and employee benefits expense, $0.3 million in equipment and data processing, $0.2 million in occupancy and $0.2 million in other non-interest expense, partially offset by decreases of $0.6 million in FDIC insurance expense and $0.1 million in professional services.

PROVISION FOR INCOME TAXES

The effective tax rate was 24.9 percent for the three months ended March 31, 2021 compared to 22.7 percent for the three months ended December 31, 2020 and 27.5 percent for the three months ended March 31, 2020.

RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

The annualized return on average assets increased to 1.21 percent during the first quarter 2021 from 1.20 percent for the fourth quarter of 2020.

The annualized return on average stockholders' equity decreased to 11.18 percent during the first quarter of 2021 from 11.38 percent for the fourth quarter of 2020. The annualized return on average tangible stockholders’ equity decreased to 13.51 percent for the first quarter of 2021 from 13.79 percent for the fourth quarter of 2020.

DIVIDEND DECLARED

The Company’s Board of Directors approved a dividend of $0.12 per share for the quarter ended March 31, 2021, an increase of half a cent from the prior period. The dividend will be paid on May 28, 2021 to stockholders of record on May 14, 2021, representing an increase of 4.3 percent from the prior quarter.

CONFERENCE CALL

The Company will conduct a conference call/webcast at 1:30 PM Eastern Daylight Time on Thursday, April 29, 2021 to discuss the results for the quarter, business highlights and outlook. A copy of the Earnings Presentation is available on the Company’s website, www.brooklinebancorp.com. To listen to the call and view the Company’s Earnings Presentation, please join the call via https://services.choruscall.com/links/brkl210429.html. To listen to the call without access to the slides, interested parties may dial 877-504-4120 (United States) or 412-902-6650 (internationally) and ask for the Brookline Bancorp, Inc. conference call. A recorded playback of the call will be available for one week following the call on the Company’s website under “Investor Relations” or by dialing 877-344-7529 (United States) or 412-317-0088 (internationally) and entering the passcode: 10154349.

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. 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, continued deterioration in employment levels, general business and economic conditions on a national basis and in the local markets in which the Company operates; changes in consumer behavior due to changing political business and economic conditions or legislative or regulatory initiatives; the possibility that future credit losses may be higher than currently expected; reputational risk relating to the Company’s participation in the Paycheck Protection Program and other pandemic-related legislative and regulatory initiatives and programs; and turbulence in capital and debt markets. Forward-looking statements involve risks and uncertainties which are difficult to predict. The Company’s actual results could differ materially from those projected in the forward-looking statements as a result of, among others, the risks outlined in the Company’s Annual Report on Form 10-K, as updated by its Quarterly Reports on Form 10-Q and other filings submitted to the Securities and Exchange Commission ("SEC"). The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.

BASIS OF PRESENTATION

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

NON-GAAP FINANCIAL MEASURES

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

 
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Selected Financial Highlights (Unaudited)
 
  At and for the Three Months Ended
  March 31, 2021
December 31, 2020
September 30, 2020
June 30, 2020
March 31, 2020
  (Dollars In Thousands Except per Share Data)
Earnings Data:          
Net interest income $ 69,109   $ 68,225   $ 65,938   $ 64,288   $ 61,712  
(Credit) provision for credit losses   (2,147 )   (2,103 )   4,528     5,347     54,114  
Non-interest income   4,794     4,219     4,862     6,235     9,328  
Non-interest expense   40,811     40,038     40,947     39,109     40,748  
Income (loss) before provision for income taxes   35,239     34,509     25,325     26,067     (23,822 )
Net income (loss) attributable to Brookline Bancorp, Inc.   26,454     26,663     18,679     19,571     (17,276 )
           
Performance Ratios:          
Net interest margin (1)   3.39 %   3.23 %   3.08 %   3.09 %   3.31 %
Interest-rate spread (1)   3.15 %   3.03 %   2.85 %   2.75 %   2.91 %
Return on average assets (annualized)   1.21 %   1.20 %   0.83 %   0.88 %   (0.87 )%
Return on average tangible assets (annualized) (non-GAAP)   1.24 %   1.22 %   0.84 %   0.90 %   (0.89 )%
Return on average stockholders' equity (annualized)   11.18 %   11.38 %   7.99 %   8.45 %   (7.30 )%
Return on average tangible stockholders' equity (annualized) (non-GAAP)   13.51 %   13.79 %   9.70 %   10.28 %   (8.84 )%
Efficiency ratio (2)   55.22 %   55.27 %   57.83 %   55.46 %   57.36 %
           
Per Common Share Data:          
Net income (loss) — Basic $ 0.34   $ 0.34   $ 0.24   $ 0.25   $ (0.22 )
Net income (loss) — Diluted   0.34     0.34     0.24     0.25     (0.22 )
Cash dividends declared   0.120     0.115     0.115     0.115     0.115  
Book value per share (end of period)   12.10     12.05     11.84     11.75     11.57  
Tangible book value per share (end of period) (non-GAAP)   10.01     9.96     9.77     9.67     9.49  
Stock price (end of period)   15.00     12.04     8.65     10.08     11.28  
           
Balance Sheet:          
Total assets $ 8,559,810   $ 8,942,424   $ 9,000,192   $ 9,069,667   $ 8,461,591  
Total loans and leases   7,267,552     7,269,553     7,396,358     7,407,697     6,822,527  
Total deposits   6,866,786     6,910,696     6,792,523     6,440,233     5,889,938  
Brookline Bancorp, Inc. stockholders’ equity   945,399     941,778     935,558     926,413     912,568  
           
Asset Quality:          
Nonperforming assets $ 37,403   $ 44,963   $ 39,365   $ 42,754   $ 41,122  
Nonperforming assets as a percentage of total assets   0.44 %   0.50 %   0.44 %   0.47 %   0.49 %
Allowance for loan and lease losses $ 109,837   $ 114,379   $ 119,971   $ 119,553   $ 113,181  
Allowance for loan and lease losses as a percentage of total loans and leases   1.51 %   1.57 %   1.62 %   1.61 %   1.66 %
Net loan and lease charge-offs $ 1,760   $ 4,381   $ 4,963   $ 1,383   $ 2,234  
Net loan and lease charge-offs as a percentage of average loans and leases (annualized)   0.10 %   0.24 %   0.27 %   0.08 %   0.13 %
           
Capital Ratios:          
Stockholders’ equity to total assets   11.04 %   10.53 %   10.39 %   10.21 %   10.78 %
Tangible stockholders’ equity to tangible assets (non-GAAP)   9.31 %   8.86 %   8.73 %   8.56 %   9.02 %
           
(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, 2021 December 31, 2020 September 30, 2020
June 30, 2020
March 31, 2020
ASSETS (In Thousands Except Share Data)
Cash and due from banks $ 41,284   $ 36,069   $ 33,818   $ 38,522   $ 86,996  
Short-term investments   89,643     398,848     283,515     216,394     253,772  
Total cash and cash equivalents   130,927     434,917     317,333     254,916     340,768  
Investment securities available-for-sale   729,901     745,822     783,867     854,505     761,539  
Investment securities held-to-maturity   -     -     -     -     -  
Equity securities held-for-trading   518     526     525     1,992     2,558  
Total investment securities   730,419     746,348     784,392     856,497     764,097  
Loans and leases:          
Commercial real estate loans   3,790,341     3,823,826     3,835,372     3,837,703     3,762,158  
Commercial loans and leases   2,324,202     2,274,899     2,354,613     2,361,463     1,826,866  
Consumer loans   1,153,009     1,170,828     1,206,373     1,208,531     1,233,503  
Total loans and leases   7,267,552     7,269,553     7,396,358     7,407,697     6,822,527  
Allowance for loan and lease losses   (109,837 )   (114,379 )   (119,971 )   (119,553 )   (113,181 )
Net loans and leases   7,157,715     7,155,174     7,276,387     7,288,144     6,709,346  
Restricted equity securities   40,400     49,786     61,715     71,638     68,472  
Premises and equipment, net of accumulated depreciation   72,524     71,568     72,441     73,127     73,786  
Right-of-use asset operating leases   23,180     24,143     23,492     24,343     24,789  
Deferred tax asset   42,857     40,129     42,269     42,683     38,141  
Goodwill   160,427     160,427     160,427     160,427     160,427  
Identified intangible assets, net of accumulated amortization   2,920     3,152     3,464     3,775     4,087  
Other real estate owned and repossessed assets   6,383     6,515     1,413     1,454     2,038  
Other assets   192,058     250,265     256,859     292,663     275,640  
Total assets $ 8,559,810   $ 8,942,424   $ 9,000,192   $ 9,069,667   $ 8,461,591  
LIABILITIES AND STOCKHOLDERS' EQUITY          
Deposits:          
Demand checking accounts $ 1,724,170   $ 1,592,205   $ 1,550,267   $ 1,603,037   $ 1,175,329  
NOW accounts   481,988     513,948     459,902     417,622     361,854  
Savings accounts   724,504     701,659     716,630     657,758     653,026  
Money market accounts   2,192,468     2,018,977     1,878,258     1,809,868     1,676,092  
Certificate of deposit accounts   1,273,105     1,389,998     1,492,913     1,601,768     1,669,509  
Brokered deposit accounts   470,551     693,909     694,553     350,180     354,128  
Total deposits   6,866,786     6,910,696     6,792,523     6,440,233     5,889,938  
Borrowed funds:          
Advances from the FHLBB   378,646     648,849     841,169     1,267,570     1,137,431  
Subordinated debentures and notes   83,783     83,746     83,707     83,668     83,630  
Other borrowed funds   83,574     87,652     80,169     55,431     70,743  
Total borrowed funds   546,003     820,247     1,005,045     1,406,669     1,291,804  
Operating lease liabilities   23,180     24,143     23,492     24,343     24,789  
Mortgagors’ escrow accounts   6,483     5,901     6,429     6,467     7,441  
Reserve for unfunded credits   13,705     13,071     13,964     14,816     17,222  
Accrued expenses and other liabilities   158,254     226,588     223,181     250,726     317,829  
Total liabilities   7,614,411     8,000,646     8,064,634     8,143,254     7,549,023  
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   737,882     737,178     736,294     738,155     737,422  
Retained earnings, partially restricted   282,301     264,892     247,336     237,808     227,359  
Accumulated other comprehensive income   2,082     16,490     18,782     19,538     16,947  
Treasury stock, at cost;          
6,534,602, 6,525,783, 5,629,854, 5,859,708, and 5,862,811 shares, respectively   (77,463 )   (77,343 )   (67,376 )   (69,572 )   (69,617 )
Unallocated common stock held by the Employee Stock Ownership Plan;          
44,502, 51,114, 58,227, 65,334, and 72,441 shares, respectively   (255 )   (291 )   (330 )   (368 )   (395 )
Total stockholders' equity   945,399     941,778     935,558     926,413     912,568  
Total liabilities and stockholders' equity $ 8,559,810   $ 8,942,424   $ 9,000,192   $ 9,069,667   $ 8,461,591  

 

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
 
  Three Months Ended
  March 31, 2021 December 31, 2020 September 30, 2020 June 30, 2020 March 31, 2020
  (In Thousands Except Share Data)
Interest and dividend income:          
Loans and leases $ 75,009   $ 76,583   $ 76,240 $ 77,416 $ 79,559  
Debt securities   3,118     3,335     3,746   3,701   2,976  
Marketable and restricted equity securities   301     490     672   908   778  
Short-term investments   39     59     46   99   209  
Total interest and dividend income   78,467     80,467     80,704   82,124   83,522  
Interest expense:          
Deposits   6,707     8,825     10,583   12,778   16,240  
Borrowed funds   2,651     3,417     4,183   5,058   5,570  
Total interest expense   9,358     12,242     14,766   17,836   21,810  
Net interest income   69,109     68,225     65,938   64,288   61,712  
(Credit) provision for credit losses   (2,147 )   (2,103 )   4,528   5,347   54,114  
Net interest income after provision for credit losses   71,256     70,328     61,410   58,941   7,598  
Non-interest income:          
Deposit fees   2,281     2,358     2,305   1,929   2,458  
Loan fees   599     588     397   513   550  
Loan level derivative income, net   474     145     527   1,440   2,156  
(Loss) gain on investment securities, net   (7 )   -     54   586   1,330  
Gain on sales of loans and leases held-for-sale   709     67     632   299   120  
Other   738     1,061     947   1,468   2,714  
Total non-interest income   4,794     4,219     4,862   6,235   9,328  
Non-interest expense:          
Compensation and employee benefits   25,821     25,054     26,092   24,619   25,219  
Occupancy   4,004     3,806     3,802   3,825   3,953  
Equipment and data processing   4,493     4,193     4,293   4,155   4,703  
Professional services   1,226     1,338     1,112   1,056   1,651  
FDIC insurance   1,044     1,630     1,363   858   378  
Advertising and marketing   1,100     1,010     1,024   1,017   1,075  
Amortization of identified intangible assets   232     312     312   311   336  
Other   2,891     2,695     2,949   3,268   3,433  
Total non-interest expense   40,811     40,038     40,947   39,109   40,748  
Income (loss) before provision for income taxes   35,239     34,509     25,325   26,067   (23,822 )
Provision (benefit) for income taxes   8,785     7,846     6,646   6,496   (6,546 )
Net income (loss) attributable to Brookline Bancorp, Inc. $ 26,454   $ 26,663   $ 18,679 $ 19,571 $ (17,276 )
Earnings per common share:          
Basic $ 0.34   $ 0.34   $ 0.24 $ 0.25 $ (0.22 )
Diluted $ 0.34   $ 0.34   $ 0.24 $ 0.25 $ (0.22 )
Weighted average common shares outstanding during the period:        
Basic   78,143,752     78,533,351     78,948,139   78,849,282   79,481,462  
Diluted   78,404,063     78,680,873     79,055,901   79,015,274   79,665,774  
Dividends paid per common share $ 0.115   $ 0.115   $ 0.115 $ 0.115 $ 0.115  
           

 

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Asset Quality Analysis (Unaudited)
 
  At and for the Three Months Ended
  March 31, 2021 December 31, 2020 September 30, 2020 June 30, 2020 March 31, 2020
  (Dollars in Thousands)
NONPERFORMING ASSETS:          
Loans and leases accounted for on a nonaccrual basis:          
Commercial real estate mortgage $ 3,611   $ 3,300   $ 10,841   $ 10,139   $ 10,937  
Multi-family mortgage   -     -     -     -     85  
Construction   3,853     3,853     -     -     -  
Total commercial real estate loans   7,464     7,153     10,841     10,139     11,022  
           
Commercial   3,161     7,702     7,751     12,427     12,991  
Equipment financing   15,772     16,757     13,372     13,100     10,356  
Condominium association   106     112     117     190     203  
Total commercial loans and leases   19,039     24,571     21,240     25,717     23,550  
           
Residential mortgage   3,722     5,587     4,634     4,157     3,446  
Home equity   793     1,136     1,235     1,278     1,059  
Other consumer   2     1     2     9     7  
Total consumer loans   4,517     6,724     5,871     5,444     4,512  
           
Total nonaccrual loans and leases   31,020     38,448     37,952     41,300     39,084  
           
Other real estate owned   5,328     5,415     -     -     -  
Other repossessed assets   1,055     1,100     1,413     1,454     2,038  
Total nonperforming assets $ 37,403   $ 44,963   $ 39,365   $ 42,754   $ 41,122  
           
Loans and leases past due greater than 90 days and still accruing $ 1,179   $ 11,975   $ 1,180   $ 1,974   $ 1,045  
           
Troubled debt restructurings on accrual   16,770     11,483     11,309     10,172     16,480  
Troubled debt restructurings on nonaccrual   6,293     7,476     5,742     5,972     5,819  
Total troubled debt restructurings $ 23,063   $ 18,959   $ 17,051   $ 16,144   $ 22,299  
           
Nonperforming loans and leases as a percentage of total loans and leases   0.43 %   0.53 %   0.51 %   0.56 %   0.57 %
Nonperforming assets as a percentage of total assets   0.44 %   0.50 %   0.44 %   0.47 %   0.49 %
           
PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:      
Allowance for loan and lease losses at beginning of period $ 114,379   $ 119,971   $ 119,553   $ 113,181   $ 61,082  
CECL adjustment to retained earnings   -     -     -     -     6,632  
Charge-offs   (2,143 )   (4,810 )   (5,511 )   (1,803 )   (2,539 )
Recoveries   383     429     548     420     305  
Net charge-offs   (1,760 )   (4,381 )   (4,963 )   (1,383 )   (2,234 )
Provision for loan and lease losses excluding unfunded commitments *   (2,782 )   (1,211 )   5,381     7,755     47,701  
Allowance for loan and lease losses at end of period $ 109,837   $ 114,379   $ 119,971   $ 119,553   $ 113,181  
           
Allowance for loan and lease losses as a percentage of total loans and leases   1.51 %   1.57 %   1.62 %   1.61 %   1.66 %
           
NET CHARGE-OFFS:          
Commercial real estate loans $ -   $ 3,444   $ 70   $ (94 ) $ -  
Commercial loans and leases   1,809     1,011     4,917     1,498     2,280  
Consumer loans   (49 )   (74 )   (24 )   (21 )   (46 )
Total net charge-offs $ 1,760   $ 4,381   $ 4,963   $ 1,383   $ 2,234  
           
Net loan and lease charge-offs as a percentage of average loans and leases (annualized)   0.10 %   0.24 %   0.27 %   0.08 %   0.13 %
           
*Provision for loan and lease losses does not include provision (credit) of $0.6 million, $(0.9) million, $(0.9) million, $2.4 million and $6.4 million for credit losses on unfunded commitments during the three months ended March 31, 2021, 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
  March 31, 2021 December 31, 2020 March 31, 2020
  Average Balance Interest (1) Average Yield/ Cost Average Balance Interest (1) Average Yield/ Cost Average Balance Interest (1) Average Yield/ Cost
  (Dollars in Thousands)
Assets:                  
Interest-earning assets:                  
Investments:                  
Debt securities (2) $ 754,699 $ 3,118 1.65 % $ 770,414 $ 3,334 1.73 % $ 605,885 $ 3,024 2.00 %
Marketable and restricted equity securities (2)   45,673   301 2.64 %   51,469   491 3.81 %   58,881   786 5.33 %
Short-term investments   191,751   39 0.08 %   223,665   59 0.10 %   84,309   209 0.99 %
Total investments   992,123   3,458 1.39 %   1,045,548   3,884 1.49 %   749,075   4,019 2.15 %
Loans and Leases:                  
Commercial real estate loans (3)   3,785,897   34,245 3.62 %   3,833,172   35,526 3.63 %   3,697,011   40,468 4.33 %
Commercial loans (3)   1,249,824   12,746 4.08 %   1,260,883   11,936 3.71 %   783,309   8,328 4.21 %
Equipment financing (3)   1,079,039   18,043 6.69 %   1,086,855   18,626 6.86 %   1,052,846   18,946 7.20 %
Residential mortgage loans (3)   780,785   7,232 3.71 %   803,884   7,530 3.75 %   810,583   7,934 3.92 %
Other consumer loans (3)   375,590   2,795 3.02 %   385,818   3,020 3.10 %   417,815   3,955 3.79 %
Total loans and leases   7,271,135   75,061 4.13 %   7,370,612   76,638 4.16 %   6,761,564   79,631 4.71 %
Total interest-earning assets   8,263,258   78,519 3.80 %   8,416,160   80,522 3.83 %   7,510,639   83,650 4.46 %
Non-interest-earning assets   450,900       458,307       455,187    
Total assets $ 8,714,158     $ 8,874,467     $ 7,965,826    
                   
Liabilities and Stockholders' Equity:                  
Interest-bearing liabilities:                  
Deposits:                  
NOW accounts $ 477,893   130 0.11 % $ 451,014   126 0.11 % $ 359,641   116 0.13 %
Savings accounts   712,728   235 0.13 %   701,378   245 0.14 %   626,945   643 0.41 %
Money market accounts   2,084,503   1,486 0.29 %   1,947,686   1,546 0.32 %   1,678,649   4,241 1.02 %
Certificates of deposit   1,328,112   4,154 1.27 %   1,452,867   5,718 1.57 %   1,682,900   9,251 2.21 %
Brokered deposit accounts   610,824   702 0.47 %   746,281   1,190 0.63 %   358,003   1,989 2.23 %
Total interest-bearing deposits   5,214,060   6,707 0.52 %   5,299,226   8,825 0.66 %   4,706,138   16,240 1.39 %
Borrowings                  
Advances from the FHLBB   488,537   1,370 1.12 %   619,844   2,118 1.34 %   772,462   4,097 2.10 %
Subordinated debentures and notes   83,764   1,242 5.93 %   83,725   1,245 5.95 %   83,609   1,284 6.14 %
Other borrowed funds   92,391   39 0.17 %   81,320   54 0.26 %   91,052   189 0.84 %
Total borrowings   664,692   2,651 1.60 %   784,889   3,417 1.70 %   947,123   5,570 2.33 %
Total interest-bearing liabilities   5,878,752   9,358 0.65 %   6,084,115   12,242 0.80 %   5,653,261   21,810 1.55 %
Non-interest-bearing liabilities:                  
Demand checking accounts   1,643,373       1,587,618       1,134,314    
Other non-interest-bearing liabilities   245,551       265,440       232,113    
Total liabilities   7,767,676       7,937,173       7,019,688    
Stockholders’ equity   946,482       937,294       946,138    
Total liabilities and equity $ 8,714,158     $ 8,874,467     $ 7,965,826    
Net interest income (tax-equivalent basis) /Interest-rate spread (4)     69,161 3.15 %     68,280 3.03 %     61,840 2.91 %
Less adjustment of tax-exempt income     52       55       128  
Net interest income   $ 69,109     $ 68,225     $ 61,712  
Net interest margin (5)     3.39 %     3.23 %     3.31 %
                   
(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,
          2021     2020  
Reconciliation Table - Non-GAAP Financial Information     (Dollars in Thousands Except Share Data)
         
Net income attributable to Brookline Bancorp, Inc.     $ 26,454   $ (17,276 )
Less:          
Security gains (losses) (after-tax)       (5 )   964  
Operating earnings       $ 26,459   $ (18,240 )
           
Operating earnings per common share:          
Basic       $ 0.34   $ (0.23 )
Diluted         0.34     (0.23 )
           
Weighted average common shares outstanding during the period:        
Basic         78,143,752     79,481,462  
Diluted         78,404,063     79,665,774  
           
           
Return on average assets *       1.21 %   (0.87 )%
Less:          
Security gains (losses) (after-tax) *       - %   0.05 %
Operating return on average assets *       1.21 %   (0.92 )%
           
           
Return on average tangible assets *       1.24 %   (0.89 )%
Less:          
Security gains (losses) (after-tax) *       - %   0.05 %
Operating return on average tangible assets *       1.24 %   (0.94 )%
           
           
Return on average stockholders' equity *       11.18 %   (7.30 )%
Less:          
Security gains (losses) (after-tax) *       - %   0.41 %
Operating return on average stockholders' equity *       11.18 %   (7.71 )%
           
           
Return on average tangible stockholders' equity *       13.51 %   (8.84 )%
Less:          
Security gains (losses) (after-tax) *       - %   0.49 %
Operating return on average tangible stockholders' equity *       13.51 %   (9.33 )%
           
* Ratios at and for the three months ended are annualized.        
           
  At and for the Three Months Ended
  March 31, 2021
December 31, 2020
September 30, 2020
June 30, 2020
March 31, 2020
  (Dollars in Thousands)
           
Net income (loss), as reported $ 26,454   $ 26,663   $ 18,679   $ 19,571   $ (17,276 )
           
Average total assets $ 8,714,158   $ 8,874,467   $ 9,018,672   $ 8,869,540   $ 7,965,826  
Less: Average goodwill and average identified intangible assets, net   163,457     163,758     164,072     164,385     164,701  
Average tangible assets $ 8,550,701   $ 8,710,709   $ 8,854,600   $ 8,705,155   $ 7,801,125  
           
Return on average tangible assets (annualized)   1.24 %   1.22 %   0.84 %   0.90 %   (0.89 )%
           
Average total stockholders’ equity $ 946,482   $ 937,294   $ 934,632   $ 926,239   $ 946,138  
Less: Average goodwill and average identified intangible assets, net   163,457     163,758     164,072     164,385     164,701  
Average tangible stockholders’ equity $ 783,025   $ 773,536   $ 770,560   $ 761,854   $ 781,437  
           
Return on average tangible stockholders’ equity (annualized)   13.51 %   13.79 %   9.70 %   10.28 %   (8.84 )%
           
Brookline Bancorp, Inc. stockholders’ equity $ 945,399   $ 941,778   $ 935,558   $ 926,413   $ 912,568  
Less:          
Goodwill   160,427     160,427     160,427     160,427     160,427  
Identified intangible assets, net   2,920     3,152     3,464     3,775     4,087  
Tangible stockholders' equity $ 782,052   $ 778,199   $ 771,667   $ 762,211   $ 748,054  
           
Total assets $ 8,559,810   $ 8,942,424   $ 9,000,192   $ 9,069,667   $ 8,461,591  
Less:          
Goodwill   160,427     160,427     160,427     160,427     160,427  
Identified intangible assets, net   2,920     3,152     3,464     3,775     4,087  
Tangible assets $ 8,396,463   $ 8,778,845   $ 8,836,301   $ 8,905,465   $ 8,297,077  
           
Tangible stockholders’ equity to tangible assets   9.31 %   8.86 %   8.73 %   8.56 %   9.02 %
           
Tangible stockholders' equity $ 782,052   $ 778,199   $ 771,667   $ 762,211   $ 748,054  
           
Number of common shares issued   85,177,172     85,177,172     85,177,172     85,177,172     85,177,172  
Less:          
Treasury shares   6,534,602     6,525,783     5,629,854     5,859,708     5,862,811  
Unallocated ESOP shares   44,502     51,114     58,227     65,334     72,441  
Unvested restricted shares   449,981     458,800     487,318     398,188     395,085  
Number of common shares outstanding   78,148,087     78,141,475     79,001,773     78,853,942     78,846,835  
           
Tangible book value per common share $ 10.01   $ 9.96   $ 9.77   $ 9.67   $ 9.49  
           
Allowance for loan and lease losses $ 109,837   $ 114,379   $ 119,971   $ 119,553   $ 113,181  
           
Total loans and leases $ 7,267,552   $ 7,269,553   $ 7,396,358   $ 7,407,697   $ 6,822,527  
Less:          
Total PPP loans   604,790     489,216     568,383     565,768     -  
Total loans and leases excluding PPP loans $ 6,662,762   $ 6,780,337   $ 6,827,975   $ 6,841,929   $ 6,822,527  
           
Allowance for loan and lease losses as a percentage of total loans and leases less PPP loans   1.65 %   1.69 %   1.76 %   1.75 %   1.66 %
           

 

 


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Source: Brookline Bancorp, Inc.