Press Release

Brookline Bancorp Announces Fourth Quarter Results

Company Release - 1/27/2021

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 Ended At 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 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, 2020 September 30, 2020 June 30, 2020 March 31, 2020 December 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, 2020 September 30, 2020 June 30, 2020
March 31, 2020 December 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, 2020 September 30, 2020 June 30, 2020
March 31, 2020 December 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, 2020 September 30, 2020 December 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 $ 3,334 1.73 % $ 851,608 $ 3,746 1.76 % $ 567,037 $ 2,957 2.09 %
Marketable and restricted equity securities (2)   51,469   491 3.81 %   66,154   670 4.06 %   59,763   823 5.51 %
Short-term investments   223,665   59 0.10 %   192,446   46 0.10 %   93,997   418 1.78 %
Total investments   1,045,548   3,884 1.49 %   1,110,208   4,462 1.61 %   720,797   4,198 2.33 %
Loans and Leases:                  
Commercial real estate loans (3)   3,833,172   35,526 3.63 %   3,831,826   35,615 3.64 %   3,605,169   40,976 4.45 %
Commercial loans (3)   1,260,883   11,936 3.71 %   1,281,202   10,677 3.27 %   826,116   10,066 4.78 %
Equipment financing (3)   1,086,855   18,626 6.86 %   1,089,058   19,018 6.99 %   1,037,431   19,271 7.43 %
Residential mortgage loans (3)   803,884   7,530 3.75 %   814,559   7,860 3.86 %   804,672   8,402 4.18 %
Other consumer loans (3)   385,818   3,020 3.10 %   395,990   3,127 3.13 %   417,950   4,680 4.43 %
Total loans and leases   7,370,612   76,638 4.16 %   7,412,635   76,297 4.12 %   6,691,338   83,395 4.99 %
Total interest-earning assets   8,416,160   80,522 3.83 %   8,522,843   80,759 3.79 %   7,412,135   87,593 4.73 %
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   126 0.11 % $ 427,009   128 0.12 % $ 344,036   115 0.13 %
Savings accounts   701,378   245 0.14 %   688,223   258 0.15 %   604,276   746 0.49 %
Money market accounts   1,947,686   1,546 0.32 %   1,855,803   1,658 0.36 %   1,685,885   4,947 1.16 %
Certificates of deposit   1,452,867   5,718 1.57 %   1,536,969   7,022 1.82 %   1,681,844   9,725 2.29 %
Brokered deposit accounts   746,281   1,190 0.63 %   562,112   1,517 1.07 %   344,909   2,122 2.44 %
Total interest-bearing deposits   5,299,226   8,825 0.66 %   5,070,116   10,583 0.83 %   4,660,950   17,655 1.50 %
Borrowings:                  
Advances from the FHLBB   619,844   2,118 1.34 %   944,865   2,876 1.19 %   753,460   4,407 2.29 %
Subordinated debentures and notes   83,725   1,245 5.95 %   83,687   1,246 5.96 %   83,570   1,293 6.19 %
Other borrowed funds   81,320   54 0.26 %   118,969   61 0.21 %   64,543   164 1.01 %
Total borrowings   784,889   3,417 1.70 %   1,147,521   4,183 1.43 %   901,573   5,864 2.55 %
Total interest-bearing liabilities   6,084,115   12,242 0.80 %   6,217,637   14,766 0.94 %   5,562,523   23,519 1.68 %
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)     68,280 3.03 %     65,993 2.85 %     64,074 3.05 %
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, 2020 December 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 $ 13,823 1.84 % $ 585,360 $ 12,483 2.13 %
Marketable and restricted equity securities (2)   61,873   2,862 4.63 %   59,751   3,516 5.88 %
Short-term investments   186,617   413 0.22 %   71,090   1,523 2.14 %
Total investments   999,179   17,098 1.71 %   716,201   17,522 2.45 %
Loans and Leases:            
Commercial real estate loans (3)   3,781,201   148,438 3.86 %   3,492,848   164,082 4.63 %
Commercial loans (3)   1,140,699   41,391 3.57 %   817,347   39,839 4.81 %
Equipment financing (3)   1,074,561   75,563 7.03 %   1,012,698   74,066 7.31 %
Residential mortgage loans (3)   810,855   31,392 3.87 %   783,556   32,926 4.20 %
Other consumer loans (3)   402,672   13,255 3.28 %   414,730   19,835 4.78 %
Total loans and leases   7,209,988   310,039 4.30 %   6,521,179   330,748 5.07 %
Total interest-earning assets   8,209,167   327,137 3.99 %   7,237,380   348,270 4.81 %
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   484 0.12 % $ 339,275   436 0.13 %
Savings accounts   670,217   1,503 0.22 %   608,022   2,900 0.48 %
Money market accounts   1,817,085   9,519 0.52 %   1,682,676   21,206 1.26 %
Certificates of deposit   1,577,104   30,355 1.92 %   1,611,389   36,326 2.25 %
Brokered deposit accounts   512,803   6,565 1.28 %   344,961   8,747 2.54 %
Total interest-bearing deposits   4,985,583   48,426 0.97 %   4,586,323   69,615 1.52 %
Borrowings:            
Advances from the FHLBB   859,389   12,842 1.47 %   757,598   18,701 2.43 %
Subordinated debentures and notes   83,667   5,038 6.02 %   83,511   5,206 6.23 %
Other borrowed funds   90,587   348 0.38 %   79,276   804 1.01 %
Total borrowings   1,033,643   18,228 1.73 %   920,385   24,711 2.65 %
Total interest-bearing liabilities   6,019,226   66,654 1.11 %   5,506,708   94,326 1.71 %
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)     260,483 2.88 %     253,944 3.10 %
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 Ended At 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 


Primary Logo

Source: Brookline Bancorp, Inc.