Press Release

Brookline Bancorp Announces Record Second Quarter Results

Company Release - 7/28/2021
Net Income of $31.6 million, EPS of $0.40

BOSTON, July 28, 2021 (GLOBE NEWSWIRE) -- Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced record net income of $31.6 million, or $0.40 per basic and diluted share, for the second quarter of 2021, compared to net income of $26.5 million, or $0.34 per basic and diluted share, for the first quarter of 2021, and net income of $19.6 million, or $0.25 per basic and diluted share, for the second quarter of 2020.

“We are pleased to report earnings of $31.6 million for the second quarter of 2021 representing $0.40 per share,” Paul Perrault, Chairman and Chief Executive Officer of the Company continued, “Brookline Bancorp and its employees continue to execute on our strategy of high performance for both our customers and our stockholders. We look forward to continued success in the second half of 2021.”

BALANCE SHEET

Total assets at June 30, 2021 decreased $97.8 million to $8.5 billion from $8.6 billion at March 31, 2021, and decreased $607.7 million from $9.1 billion at June 30, 2020. At June 30, 2021, total loans and leases were $7.0 billion, representing a decrease of $247.3 million from March 31, 2021, and a decrease of $387.4 million from June 30, 2020.

The Company funded a total of 4,700 of SBA Paycheck Protection Program ("PPP") loans in the aggregate amount of $872.1 million. As of June 30, 2021, $348.4 million in PPP loans remain outstanding, net of deferred fees and costs of $10.3 million. Excluding PPP loan activity, the core loan portfolio grew $9.1 million in the quarter compared to a decline of $117.6 million in the first quarter.

Total investment securities at June 30, 2021 decreased $36.3 million to $694.2 million from $730.4 million at March 31, 2021, and decreased $162.3 million from $856.5 million at June 30, 2020. Total cash and cash equivalents at June 30, 2021 increased $189.5 million to $320.4 million from $130.9 million at March 31, 2021, and increased $65.5 million from $254.9 million at June 30, 2020. As of June 30, 2021, total investment securities and total cash and cash equivalents represented 12.0 percent of total assets as compared to 10.1 percent and 12.3 percent as of March 31, 2021 and June 30, 2020, respectively.

Total deposits at June 30, 2021 increased $27.9 million to $6.89 billion from $6.87 billion at March 31, 2021 and increased $454.5 million from $6.4 billion at June 30, 2020.

Total borrowed funds at June 30, 2021 decreased $183.0 million to $363.0 million from $546.0 million at March 31, 2021 and decreased $1.0 billion from $1.4 billion at June 30, 2020.

The ratio of stockholders’ equity to total assets was 11.49 percent at June 30, 2021, as compared to 11.04 percent at March 31, 2021, and 10.21 percent at June 30, 2020. The ratio of tangible stockholders’ equity to tangible assets (non-GAAP) was 9.75 percent at June 30, 2021, as compared to 9.31 percent at March 31, 2021, and 8.56 percent at June 30, 2020. Tangible book value per share (non-GAAP) increased $0.34 from $10.01 at March 31, 2021 to $10.35 at June 30, 2021, compared to $9.67 at June 30, 2020.

NET INTEREST INCOME

Net interest income increased $2.0 million to $71.1 million for the second quarter of 2021 from $69.1 million at the quarter ended March 31, 2021. The net interest margin increased 13 basis points to 3.52 percent for the three months ended June 30, 2021 from 3.39 percent for the three months ended March 31, 2021.

NON-INTEREST INCOME

Total non-interest income for the quarter ended June 30, 2021 increased $1.1 million to $5.9 million from $4.8 million for the quarter ended March 31, 2021. The increase was primarily driven by an increase of $0.7 million in deposit fees and an increase of $1.0 million in other non-interest income, partially offset by a decrease of $0.4 million in loan level derivative income, net and a decrease of $0.2 million in gain on sales of loans and leases.

PROVISION FOR CREDIT LOSSES

The Company recorded a negative provision for credit losses of $3.3 million for the quarter ended June 30, 2021, compared to a negative provision for credit losses of $2.1 million for the quarter ended March 31, 2021. Total net charge-offs for the second quarter of 2021 were $0.6 million compared to $1.8 million in the first quarter of 2021. The decrease is primarily driven by a combination of a decrease in charge-offs of equipment financing loans and commercial loans of $0.6 million and $0.3 million, respectively, and an increase in recoveries of equipment financing loans and home equity loans of $0.2 million and $0.1 million, respectively. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis decreased to 3 basis points for the second quarter of 2021 from 10 basis points for the first quarter of 2021.

The allowance for loan and lease losses represented 1.52 percent of total loans and leases at June 30, 2021, compared to 1.51 percent at March 31, 2021, and 1.61 percent at June 30, 2020. Excluding PPP loans, the allowance for loan and lease losses represents 1.60 percent of total loans and leases at June 30, 2021 compared to 1.65 percent at March 31, 2021, and 1.75 percent at June 30, 2020.

ASSET QUALITY

The ratio of nonperforming loans and leases to total loans and leases was 0.49 percent at June 30, 2021, an increase from 0.43 percent at March 31, 2021. Total nonaccrual loans and leases increased $3.2 million to $34.2 million at June 30, 2021 from $31.0 million at March 31, 2021. The ratio of nonperforming assets to total assets was 0.41 percent at June 30, 2021, a decrease from 0.44 percent at March 31, 2021. Total nonperforming assets decreased $2.8 million to $34.6 million at June 30, 2021 from $37.4 million at March 31, 2021.

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, 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 June 30, 2021, approximately 90 percent of loans granted an initial loan payment deferral have returned to payment status and 151 credits totaling $96.0 million or 1.4 percent of total loans outstanding are operating under modified terms.

NON-INTEREST EXPENSE

Non-interest expense for the quarter ended June 30, 2021 decreased $2.8 million to $38.0 million from $40.8 million for the quarter ended March 31, 2021. The decrease was primarily driven by decreases of $0.6 million in compensation and employee benefits expense, $0.4 million in FDIC insurance expense and $1.8 million in other non-interest expense due to a $2.1 million gain on sale of other real estate owned.

PROVISION FOR INCOME TAXES

The effective tax rate was 25.4 percent and 25.2 percent for the three and six months ended June 30, 2021 compared to 24.9 percent for the three months ended March 31, 2021 and 24.9 percent and a negative 2.2 percent for the three and six months ended June 30, 2020.

RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

The annualized return on average assets increased to 1.48 percent during the second quarter 2021 from 1.21 percent for the first quarter of 2021.

The annualized return on average stockholders' equity increased to 13.21 percent during the second quarter of 2021 from 11.18 percent for the first quarter of 2021. The annualized return on average tangible stockholders’ equity increased to 15.92 percent for the second quarter of 2021 from 13.51 percent for the first quarter of 2021.

DIVIDEND DECLARED

The Company’s Board of Directors approved a dividend of $0.12 per share for the quarter ended June 30, 2021. The dividend will be paid on August 27, 2021 to stockholders of record on August 13, 2021.

CONFERENCE CALL

The Company will conduct a conference call/webcast at 1:30 PM Eastern Daylight Time on Thursday, July 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/brkl1210729.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: 10157750.

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 the COVID-19 pandemic 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, 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 as a percentage of total loans and leases less PPP loans, tangible book value per common share, tangible stockholders’ equity to tangible assets, return on average tangible assets (annualized) and return on average tangible stockholders' equity (annualized). These non-GAAP financial measures provide information for investors to effectively analyze financial trends of ongoing business activities, and to enhance comparability with peers across the financial services sector. A detailed reconciliation table of the Company's GAAP to the non-GAAP measures is attached.

INVESTOR RELATIONS:

Contact:         
Carl M. Carlson
Brookline Bancorp, Inc.
Co-President and 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
  June 30, 2021
March 31, 2021
December 31, 2020
September 30, 2020 June 30, 2020
  (Dollars In Thousands Except per Share Data)
Earnings Data:          
Net interest income $ 71,106     $ 69,109     $ 68,225     $ 65,938     $ 64,288  
(Credit) provision for credit losses   (3,331 )     (2,147 )     (2,103 )     4,528       5,347  
Non-interest income   5,910       4,794       4,219       4,862       6,235  
Non-interest expense   37,966       40,811       40,038       40,947       39,109  
Income before provision for income taxes   42,381       35,239       34,509       25,325       26,067  
Net income   31,602       26,454       26,663       18,679       19,571  
           
Performance Ratios:          
Net interest margin (1)   3.52 %     3.39 %     3.23 %     3.08 %     3.09 %
Interest-rate spread (1)   3.34 %     3.15 %     3.03 %     2.85 %     2.75 %
Return on average assets (annualized)   1.48 %     1.21 %     1.20 %     0.83 %     0.88 %
Return on average tangible assets (annualized) (non-GAAP)   1.51 %     1.24 %     1.22 %     0.84 %     0.90 %
Return on average stockholders' equity (annualized)   13.21 %     11.18 %     11.38 %     7.99 %     8.45 %
Return on average tangible stockholders' equity (annualized) (non-GAAP)   15.92 %     13.51 %     13.79 %     9.70 %     10.28 %
Efficiency ratio (2)   49.30 %     55.22 %     55.27 %     57.83 %     55.46 %
           
Per Common Share Data:          
Net income (loss) — Basic $ 0.40     $ 0.34     $ 0.34     $ 0.24     $ 0.25  
Net income (loss) — Diluted   0.40       0.34       0.34       0.24       0.25  
Cash dividends declared   0.120       0.120       0.115       0.115       0.115  
Book value per share (end of period)   12.44       12.10       12.05       11.84       11.75  
Tangible book value per share (end of period) (non-GAAP)   10.35       10.01       9.96       9.77       9.67  
Stock price (end of period)   14.95       15.00       12.04       8.65       10.08  
           
Balance Sheet:          
Total assets $ 8,461,964     $ 8,559,810     $ 8,942,424     $ 9,000,192     $ 9,069,667  
Total loans and leases   7,020,275       7,267,552       7,269,553       7,396,358       7,407,697  
Total deposits   6,894,701       6,866,786       6,910,696       6,792,523       6,440,233  
Total stockholders’ equity   972,252       945,399       941,778       935,558       926,413  
           
Asset Quality:          
Nonperforming assets $ 34,588     $ 37,403     $ 44,963     $ 39,365     $ 42,754  
Nonperforming assets as a percentage of total assets   0.41 %     0.44 %     0.50 %     0.44 %     0.47 %
Allowance for loan and lease losses $ 106,474     $ 109,837     $ 114,379     $ 119,971     $ 119,553  
Allowance for loan and lease losses as a percentage of total loans and leases   1.52 %     1.51 %     1.57 %     1.62 %     1.61 %
Net loan and lease charge-offs $ 595     $ 1,760     $ 4,381     $ 4,963     $ 1,383  
Net loan and lease charge-offs as a percentage of average loans and leases (annualized)   0.03 %     0.10 %     0.24 %     0.27 %     0.08 %
           
Capital Ratios:          
Stockholders’ equity to total assets   11.49 %     11.04 %     10.53 %     10.39 %     10.21 %
Tangible stockholders’ equity to tangible assets (non-GAAP)   9.75 %     9.31 %     8.86 %     8.73 %     8.56 %
           
(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)
  June 30, 2021 March 31, 2021
December 31, 2020
September 30, 2020
June 30, 2020
ASSETS (In Thousands Except Share Data)
Cash and due from banks $ 36,079     $ 41,284     $ 36,069     $ 33,818     $ 38,522  
Short-term investments   284,370       89,643       398,848       283,515       216,394  
Total cash and cash equivalents   320,449       130,927       434,917       317,333       254,916  
Investment securities available-for-sale   694,151       729,901       745,822       783,867       854,505  
Investment securities held-to-maturity   -       -       -       -       -  
Equity securities held-for-trading   -       518       526       525       1,992  
Total investment securities   694,151       730,419       746,348       784,392       856,497  
Loans and leases:          
Commercial real estate loans   3,815,581       3,790,341       3,823,826       3,835,372       3,837,703  
Commercial loans and leases   2,038,851       2,324,202       2,274,899       2,354,613       2,361,463  
Consumer loans   1,165,843       1,153,009       1,170,828       1,206,373       1,208,531  
Total loans and leases   7,020,275       7,267,552       7,269,553       7,396,358       7,407,697  
Allowance for loan and lease losses   (106,474 )     (109,837 )     (114,379 )     (119,971 )     (119,553 )
Net loans and leases   6,913,801       7,157,715       7,155,174       7,276,387       7,288,144  
Restricted equity securities   31,627       40,400       49,786       61,715       71,638  
Premises and equipment, net of accumulated depreciation   71,240       72,524       71,568       72,441       73,127  
Right-of-use asset operating leases   22,682       23,180       24,143       23,492       24,343  
Deferred tax asset   41,324       42,857       40,129       42,269       42,683  
Goodwill   160,427       160,427       160,427       160,427       160,427  
Identified intangible assets, net of accumulated amortization   2,692       2,920       3,152       3,464       3,775  
Other real estate owned and repossessed assets   372       6,383       6,515       1,413       1,454  
Other assets   203,199       192,058       250,265       256,859       292,663  
Total assets $ 8,461,964     $ 8,559,810     $ 8,942,424     $ 9,000,192     $ 9,069,667  
LIABILITIES AND STOCKHOLDERS' EQUITY          
Deposits:          
Demand checking accounts $ 1,926,713     $ 1,724,170     $ 1,592,205     $ 1,550,267     $ 1,603,037  
NOW accounts   495,598       481,988       513,948       459,902       417,622  
Savings accounts   782,482       724,504       701,659       716,630       657,758  
Money market accounts   2,250,651       2,192,468       2,018,977       1,878,258       1,809,868  
Certificate of deposit accounts   1,178,131       1,273,105       1,389,998       1,492,913       1,601,768  
Brokered deposit accounts   261,126       470,551       693,909       694,553       350,180  
Total deposits   6,894,701       6,866,786       6,910,696       6,792,523       6,440,233  
Borrowed funds:          
Advances from the FHLBB   204,154       378,646       648,849       841,169       1,267,570  
Subordinated debentures and notes   83,821       83,783       83,746       83,707       83,668  
Other borrowed funds   75,039       83,574       87,652       80,169       55,431  
Total borrowed funds   363,014       546,003       820,247       1,005,045       1,406,669  
Operating lease liabilities   22,682       23,180       24,143       23,492       24,343  
Mortgagors’ escrow accounts   6,231       6,483       5,901       6,429       6,467  
Reserve for unfunded credits   13,142       13,705       13,071       13,964       14,816  
Accrued expenses and other liabilities   189,942       158,254       226,588       223,181       250,726  
Total liabilities   7,489,712       7,614,411       8,000,646       8,064,634       8,143,254  
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   738,557       737,882       737,178       736,294       738,155  
Retained earnings, partially restricted   304,466       282,301       264,892       247,336       237,808  
Accumulated other comprehensive income   6,089       2,082       16,490       18,782       19,538  
Treasury stock, at cost;          
6,536,478, 6,534,602, 6,525,783, 5,629,854, and 5,859,708 shares, respectively   (77,493 )     (77,463 )     (77,343 )     (67,376 )     (69,572 )
Unallocated common stock held by the Employee Stock Ownership Plan;          
37,890, 44,502, 51,114, 58,227, and 65,334 shares, respectively   (219 )     (255 )     (291 )     (330 )     (368 )
Total stockholders' equity   972,252       945,399       941,778       935,558       926,413  
Total liabilities and stockholders' equity $ 8,461,964     $ 8,559,810     $ 8,942,424     $ 9,000,192     $ 9,069,667  



BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
  Three Months Ended
  June 30, 2021
March 31, 2021
December 31, 2020
September 30, 2020
June 30, 2020
  (In Thousands Except Share Data)
Interest and dividend income:          
Loans and leases $ 75,026     $ 75,009     $ 76,583     $ 76,240     $ 77,416  
Debt securities   3,121       3,118       3,335       3,746       3,701  
Marketable and restricted equity securities   233       301       490       672       908  
Short-term investments   42       39       59       46       99  
Total interest and dividend income   78,422       78,467       80,467       80,704       82,124  
Interest expense:          
Deposits   5,380       6,707       8,825       10,583       12,778  
Borrowed funds   1,936       2,651       3,417       4,183       5,058  
Total interest expense   7,316       9,358       12,242       14,766       17,836  
Net interest income   71,106       69,109       68,225       65,938       64,288  
(Credit) provision for credit losses   (3,331 )     (2,147 )     (2,103 )     4,528       5,347  
Net interest income after provision for credit losses   74,437       71,256       70,328       61,410       58,941  
Non-interest income:          
Deposit fees   3,015       2,281       2,358       2,305       1,929  
Loan fees   607       599       588       397       513  
Loan level derivative income, net   7       474       145       527       1,440  
Gain (loss) on investment securities, net   1       (7 )     -       54       586  
Gain on sales of loans and leases held-for-sale   538       709       67       632       299  
Other   1,742       738       1,061       947       1,468  
Total non-interest income   5,910       4,794       4,219       4,862       6,235  
Non-interest expense:          
Compensation and employee benefits   25,161       25,821       25,054       26,092       24,619  
Occupancy   3,832       4,004       3,806       3,802       3,825  
Equipment and data processing   4,697       4,493       4,193       4,293       4,155  
Professional services   1,245       1,226       1,338       1,112       1,056  
FDIC insurance   657       1,044       1,630       1,363       858  
Advertising and marketing   1,110       1,100       1,010       1,024       1,017  
Amortization of identified intangible assets   228       232       312       312       311  
Other   1,036       2,891       2,695       2,949       3,268  
Total non-interest expense   37,966       40,811       40,038       40,947       39,109  
Income before provision for income taxes   42,381       35,239       34,509       25,325       26,067  
Provision for income taxes   10,779       8,785       7,846       6,646       6,496  
Net income $ 31,602     $ 26,454     $ 26,663     $ 18,679     $ 19,571  
Earnings per common share:          
Basic $ 0.40     $ 0.34     $ 0.34     $ 0.24     $ 0.25  
Diluted $ 0.40     $ 0.34     $ 0.34     $ 0.24     $ 0.25  
Weighted average common shares outstanding during the period:        
Basic   78,150,364       78,143,752       78,533,351       78,948,139       78,849,282  
Diluted   78,470,451       78,404,063       78,680,873       79,055,901       79,015,274  
Dividends paid per common share $ 0.120     $ 0.115     $ 0.115     $ 0.115     $ 0.115  
           

 

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
   
  Six Months Ended June 30,
    2021       2020  
  (In Thousands Except Share Data)
Interest and dividend income:    
Loans and leases $ 150,035     $ 156,975  
Debt securities   6,239       6,677  
Marketable and restricted equity securities   534       1,686  
Short-term investments   81       308  
Total interest and dividend income   156,889       165,646  
Interest expense:    
Deposits   12,087       29,018  
Borrowed funds   4,587       10,628  
Total interest expense   16,674       39,646  
Net interest income   140,215       126,000  
(Credit) provision for credit losses   (5,478 )     59,461  
Net interest income after provision for credit losses   145,693       66,539  
Non-interest income:    
Deposit Fees   5,296       4,387  
Loan Fees   1,160       1,063  
Loan level derivative income, net   481       3,596  
(Loss) gain on investment securities, net   (6 )     1,916  
Gain on sales of loans and leases held-for-sale   1,247       419  
Other   2,526       4,182  
Total non-interest income   10,704       15,563  
Non-interest expense:    
Compensation and employee benefits   50,982       49,838  
Occupancy   7,836       7,778  
Equipment and data processing   9,190       8,858  
Professional services   2,471       2,707  
FDIC insurance   1,701       1,236  
Advertising and marketing   2,210       2,092  
Amortization of identified intangible assets   460       647  
Other   3,927       6,701  
Total non-interest expense   78,777       79,857  
Income before provision for income taxes   77,620       2,245  
Provision (benefit) for income taxes   19,564       (50 )
Net income $ 58,056     $ 2,295  
Earnings per common share:    
Basic $ 0.74     $ 0.03  
Diluted $ 0.74     $ 0.03  
Weighted average common shares outstanding during the period:  
Basic   78,147,076       79,165,372  
Diluted   78,437,275       79,340,524  
Dividends paid per common share $ 0.235     $ 0.230  
     

 

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Asset Quality Analysis (Unaudited)
  At and for the Three Months Ended
  June 30, 2021
March 31, 2021
December 31, 2020 September 30, 2020 June 30, 2020
  (Dollars in Thousands)
NONPERFORMING ASSETS:          
Loans and leases accounted for on a nonaccrual basis:          
Commercial real estate mortgage $ 11,657     $ 3,611     $ 3,300     $ 10,841     $ 10,139  
Multi-family mortgage   -       -       -       -       -  
Construction   -       3,853       3,853       -       -  
Total commercial real estate loans   11,657       7,464       7,153       10,841       10,139  
           
Commercial   3,207       3,161       7,702       7,751       12,427  
Equipment financing   14,872       15,772       16,757       13,372       13,100  
Condominium association   97       106       112       117       190  
Total commercial loans and leases   18,176       19,039       24,571       21,240       25,717  
           
Residential mortgage   3,638       3,722       5,587       4,634       4,157  
Home equity   744       793       1,136       1,235       1,278  
Other consumer   1       2       1       2       9  
Total consumer loans   4,383       4,517       6,724       5,871       5,444  
           
Total nonaccrual loans and leases   34,216       31,020       38,448       37,952       41,300  
           
Other real estate owned   -       5,328       5,415       -       -  
Other repossessed assets   372       1,055       1,100       1,413       1,454  
Total nonperforming assets $ 34,588     $ 37,403     $ 44,963     $ 39,365     $ 42,754  
           
Loans and leases past due greater than 90 days and still accruing $ 3,154     $ 1,179     $ 11,975     $ 1,180     $ 1,974  
           
Troubled debt restructurings on accrual   14,387       16,770       11,483       11,309       10,172  
Troubled debt restructurings on nonaccrual   6,410       6,293       7,476       5,742       5,972  
Total troubled debt restructurings $ 20,797     $ 23,063     $ 18,959     $ 17,051     $ 16,144  
           
Nonperforming loans and leases as a percentage of total loans and leases   0.49 %     0.43 %     0.53 %     0.51 %     0.56 %
Nonperforming assets as a percentage of total assets   0.41 %     0.44 %     0.50 %     0.44 %     0.47 %
           
PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:      
Allowance for loan and lease losses at beginning of period $ 109,837     $ 114,379     $ 119,971     $ 119,553     $ 113,181  
CECL adjustment to retained earnings   -       -       -       -       -  
Charge-offs   (1,221 )     (2,143 )     (4,810 )     (5,511 )     (1,803 )
Recoveries   626       383       429       548       420  
Net charge-offs   (595 )     (1,760 )     (4,381 )     (4,963 )     (1,383 )
(Credit) provision for loan and lease losses excluding unfunded commitments *   (2,768 )     (2,782 )     (1,211 )     5,381       7,755  
Allowance for loan and lease losses at end of period $ 106,474     $ 109,837     $ 114,379     $ 119,971     $ 119,553  
           
Allowance for loan and lease losses as a percentage of total loans and leases   1.52 %     1.51 %     1.57 %     1.62 %     1.61 %
           
NET CHARGE-OFFS:          
Commercial real estate loans $ 17     $ -     $ 3,444     $ 70     $ (94 )
Commercial loans and leases   695       1,809       1,011       4,917       1,498  
Consumer loans   (117 )     (49 )     (74 )     (24 )     (21 )
Total net charge-offs $ 595     $ 1,760     $ 4,381     $ 4,963     $ 1,383  
           
Net loan and lease charge-offs as a percentage of average loans and leases (annualized)   0.03 %     0.10 %     0.24 %     0.27 %     0.08 %
           
*Provision for loan and lease losses does not include (credit) provision of $(0.6) million, $0.6 million, $(0.9) million, $(0.9) million and $2.4 million for credit losses on unfunded commitments during the three months ended June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, respectively.     
 

 

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Average Yields / Costs (Unaudited)
  Three Months Ended
  June 30, 2021 March 31, 2021 June 30, 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) $ 721,029   $ 3,121   1.73 %   $ 754,699   $ 3,118   1.65 %   $ 773,523   $ 3,719   1.92 %
Marketable and restricted equity securities (2)   34,989     233   2.67 %     45,673     301   2.64 %     71,058     915   5.15 %
Short-term investments   234,317     42   0.07 %     191,751     39   0.08 %     245,577     99   0.16 %
Total investments   990,335     3,396   1.37 %     992,123     3,458   1.39 %     1,090,158     4,733   1.74 %
Loans and Leases:                  
Commercial real estate loans (3)   3,780,920     34,320   3.59 %     3,785,897     34,245   3.62 %     3,761,667     36,829   3.87 %
Commercial loans (3)   1,115,910     13,040   4.62 %     1,249,824     12,746   4.08 %     1,234,537     10,450   3.35 %
Equipment financing (3)   1,074,469     17,963   6.69 %     1,079,039     18,043   6.69 %     1,069,192     18,973   7.10 %
Residential mortgage loans (3)   788,296     6,927   3.51 %     780,785     7,232   3.71 %     814,431     8,068   3.96 %
Other consumer loans (3)   368,845     2,833   3.08 %     375,590     2,795   3.02 %     411,326     3,153   3.07 %
Total loans and leases   7,128,440     75,083   4.21 %     7,271,135     75,061   4.13 %     7,291,153     77,473   4.25 %
Total interest-earning assets   8,118,775     78,479   3.87 %     8,263,258     78,519   3.80 %     8,381,311     82,206   3.92 %
Non-interest-earning assets   421,453         450,900         488,229      
Total assets $ 8,540,228       $ 8,714,158       $ 8,869,540      
                   
Liabilities and Stockholders' Equity:                  
Interest-bearing liabilities:                  
Deposits:                  
NOW accounts $ 499,883     146   0.12 %   $ 477,893     130   0.11 %   $ 395,158     114   0.12 %
Savings accounts   774,406     248   0.13 %     712,728     235   0.13 %     663,782     357   0.22 %
Money market accounts   2,247,997     1,497   0.27 %     2,084,503     1,486   0.29 %     1,784,343     2,074   0.47 %
Certificates of deposit   1,226,668     3,102   1.01 %     1,328,112     4,154   1.27 %     1,637,486     8,364   2.05 %
Brokered deposit accounts   418,166     387   0.37 %     610,824     702   0.47 %     381,709     1,869   1.97 %
Total interest-bearing deposits   5,167,120     5,380   0.42 %     5,214,060     6,707   0.52 %     4,862,478     12,778   1.06 %
Borrowings                  
Advances from the FHLBB   250,102     663   1.05 %     488,537     1,370   1.12 %     1,102,079     3,751   1.35 %
Subordinated debentures and notes   83,802     1,242   5.93 %     83,764     1,242   5.93 %     83,647     1,263   6.04 %
Other borrowed funds   74,285     31   0.17 %     92,391     39   0.17 %     70,795     44   0.25 %
Total borrowings   408,189     1,936   1.88 %     664,692     2,651   1.60 %     1,256,521     5,058   1.59 %
Total interest-bearing liabilities   5,575,309     7,316   0.53 %     5,878,752     9,358   0.65 %     6,118,999     17,836   1.17 %
Non-interest-bearing liabilities:                  
Demand checking accounts   1,785,023         1,643,373         1,512,089      
Other non-interest-bearing liabilities   222,689         245,551         312,213      
Total liabilities   7,583,021         7,767,676         7,943,301      
Stockholders’ equity   957,207         946,482         926,239      
Total liabilities and equity $ 8,540,228       $ 8,714,158       $ 8,869,540      
Net interest income (tax-equivalent basis) /Interest-rate spread (4)     71,163   3.34 %       69,161   3.15 %       64,370   2.75 %
Less adjustment of tax-exempt income     57         52         82    
Net interest income   $ 71,106       $ 69,109       $ 64,288    
Net interest margin (5)     3.52 %       3.39 %       3.09 %
                   
(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
Average Yields / Costs (Unaudited)
  Six Months Ended
  June 30, 2021 June 30, 2020
  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) $ 737,771   $ 6,239   1.69 %   $ 689,704   $ 6,743   1.96 %
Marketable and restricted equity securities (2)   40,302     534   2.65 %     64,968     1,701   5.24 %
Short-term investments   213,152     81   0.08 %     164,943     308   0.37 %
Total investments   991,225     6,854   1.38 %     919,615     8,752   1.90 %
Loans and Leases:            
Commercial real estate loans (3)   3,783,394     68,565   3.60 %     3,729,339     77,297   4.10 %
Commercial loans (3)   1,182,498     25,786   4.34 %     1,008,923     18,778   3.68 %
Equipment financing (3)   1,076,741     36,006   6.69 %     1,061,019     37,919   7.15 %
Residential mortgage loans (3)   784,562     14,159   3.61 %     812,507     16,002   3.94 %
Other consumer loans (3)   372,198     5,628   3.05 %     414,570     7,108   3.43 %
Total loans and leases   7,199,393     150,144   4.17 %     7,026,358     157,104   4.47 %
Total interest-earning assets   8,190,618     156,998   3.83 %     7,945,973     165,856   4.17 %
Non-interest-earning assets   436,121         471,710      
Total assets $ 8,626,739       $ 8,417,683      
             
Liabilities and Stockholders' Equity:            
Interest-bearing liabilities:            
Deposits:            
NOW accounts $ 488,949     276   0.11 %   $ 377,399     230   0.12 %
Savings accounts   743,738     483   0.13 %     645,363     1,000   0.31 %
Money market accounts   2,166,702     2,983   0.28 %     1,731,496     6,315   0.73 %
Certificates of deposit   1,277,110     7,256   1.15 %     1,660,193     17,615   2.13 %
Brokered deposit accounts   513,963     1,089   0.43 %     369,856     3,858   2.10 %
Total interest-bearing deposits   5,190,462     12,087   0.47 %     4,784,307     29,018   1.22 %
Borrowings            
Advances from the FHLBB   368,661     2,033   1.10 %     937,271     7,848   1.66 %
Subordinated debentures and notes   83,783     2,484   5.93 %     83,628     2,547   6.09 %
Other borrowed funds   83,288     70   0.17 %     80,924     233   0.58 %
Total borrowings   535,732     4,587   1.70 %     1,101,823     10,628   1.91 %
Total interest-bearing liabilities   5,726,194     16,674   0.59 %     5,886,130     39,646   1.35 %
Non-interest-bearing liabilities:            
Demand checking accounts   1,714,589         1,323,202      
Other non-interest-bearing liabilities   234,082         272,162      
Total liabilities   7,674,865         7,481,494      
Stockholders’ equity   951,874         936,189      
Total liabilities and equity $ 8,626,739       $ 8,417,683      
Net interest income (tax-equivalent basis) /Interest-rate spread (4)     140,324   3.24 %       126,210   2.82 %
Less adjustment of tax-exempt income     109         210    
Net interest income   $ 140,215       $ 126,000    
Net interest margin (5)     3.45 %       3.19 %
             
(1) Tax-exempt income on debt securities, equity securities and revenue bonds included in commercial real estate loans is included on a tax-equivalent basis.
(2) Average balances include unrealized gains (losses) on investment securities. Dividend payments may not be consistent and average yield on equity securities may vary from month to month.
(3) Loans on nonaccrual status are included in the average balances.
(4) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
(5) Net interest margin represents net interest income (tax-equivalent basis) divided by average interest-earning assets on an actual/actual basis.
             

 

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Non-GAAP Financial Information (Unaudited)
    Three Months Ended   June 30, Six Months Ended   June 30,
      2021       2020       2021       2020  
Reconciliation Table - Non-GAAP Financial Information (Dollars in Thousands Except Share Data)
         
Net income attributable to Brookline Bancorp, Inc. $ 31,602     $ 19,571     $ 58,056     $ 2,295  
Less:          
Security gains (losses) (after-tax)   1       440       (4 )     1,958  
Operating earnings   $ 31,601     $ 19,131     $ 58,060     $ 337  
           
Operating earnings per common share:          
Basic   $ 0.40     $ 0.24     $ 0.74     $ -  
Diluted     0.40       0.24       0.74       -  
           
Weighted average common shares outstanding during the period:        
Basic     78,150,364       78,849,282       78,147,076       79,165,372  
Diluted     78,470,451       79,015,274       78,437,275       79,340,524  
           
           
Return on average assets *   1.48 %     0.88 %     1.35 %     0.05 %
Less:          
Security gains (losses) (after-tax) *   - %     0.02 %     - %     0.04 %
Operating return on average assets *   1.48 %     0.86 %     1.35 %     0.01 %
           
           
Return on average tangible assets *   1.51 %     0.90 %     1.37 %     0.06 %
Less:          
Security gains (losses) (after-tax) *   - %     0.02 %     - %     0.05 %
Operating return on average tangible assets *   1.51 %     0.88 %     1.37 %     0.01 %
           
           
Return on average stockholders' equity *   13.21 %     8.45 %     12.20 %     0.49 %
Less:          
Security gains (losses) (after-tax) *   - %     0.19 %     - %     0.42 %
Operating return on average stockholders' equity *   13.21 %     8.26 %     12.20 %     0.07 %
           
           
Return on average tangible stockholders' equity *   15.92 %     10.28 %     14.73 %     0.59 %
Less:          
Security gains (losses) (after-tax) *   - %     0.24 %     - %     0.50 %
Operating return on average tangible stockholders' equity *   15.92 %     10.04 %     14.73 %     0.09 %
           
* Ratios at and for the three and six months ended are annualized.        

 

 

  At and for the Three Months Ended
  June 30, 2021
March 31, 2021
December 31, 2020
September 30, 2020 June 30, 2020
  (Dollars in Thousands)
           
Net income, as reported $ 31,602     $ 26,454     $ 26,663     $ 18,679     $ 19,571  
           
Average total assets $ 8,540,228     $ 8,714,158     $ 8,874,467     $ 9,018,672     $ 8,869,540  
Less: Average goodwill and average identified intangible assets, net   163,224       163,457       163,758       164,072       164,385  
Average tangible assets $ 8,377,004     $ 8,550,701     $ 8,710,709     $ 8,854,600     $ 8,705,155  
           
Return on average tangible assets (annualized)   1.51 %     1.24 %     1.22 %     0.84 %     0.90 %
           
Average total stockholders’ equity $ 957,207     $ 946,482     $ 937,294     $ 934,632     $ 926,239  
Less: Average goodwill and average identified intangible assets, net   163,224       163,457       163,758       164,072       164,385  
Average tangible stockholders’ equity $ 793,983     $ 783,025     $ 773,536     $ 770,560     $ 761,854  
           
Return on average tangible stockholders’ equity (annualized)   15.92 %     13.51 %     13.79 %     9.70 %     10.28 %
           
Total stockholders’ equity $ 972,252     $ 945,399     $ 941,778     $ 935,558     $ 926,413  
Less:          
Goodwill   160,427       160,427       160,427       160,427       160,427  
Identified intangible assets, net   2,692       2,920       3,152       3,464       3,775  
Tangible stockholders' equity $ 809,133     $ 782,052     $ 778,199     $ 771,667     $ 762,211  
           
Total assets $ 8,461,964     $ 8,559,810     $ 8,942,424     $ 9,000,192     $ 9,069,667  
Less:          
Goodwill   160,427       160,427       160,427       160,427       160,427  
Identified intangible assets, net   2,692       2,920       3,152       3,464       3,775  
Tangible assets $ 8,298,845     $ 8,396,463     $ 8,778,845     $ 8,836,301     $ 8,905,465  
           
Tangible stockholders’ equity to tangible assets   9.75 %     9.31 %     8.86 %     8.73 %     8.56 %
           
Tangible stockholders' equity $ 809,133     $ 782,052     $ 778,199     $ 771,667     $ 762,211  
           
Number of common shares issued   85,177,172       85,177,172       85,177,172       85,177,172       85,177,172  
Less:          
Treasury shares   6,536,478       6,534,602       6,525,783       5,629,854       5,859,708  
Unallocated ESOP shares   37,890       44,502       51,114       58,227       65,334  
Unvested restricted shares   448,105       449,981       458,800       487,318       398,188  
Number of common shares outstanding   78,154,699       78,148,087       78,141,475       79,001,773       78,853,942  
           
Tangible book value per common share $ 10.35     $ 10.01     $ 9.96     $ 9.77     $ 9.67  
           
Allowance for loan and lease losses $ 106,474     $ 109,837     $ 114,379     $ 119,971     $ 119,553  
           
Total loans and leases $ 7,020,275     $ 7,267,552     $ 7,269,553     $ 7,396,358     $ 7,407,697  
Less:          
Total PPP loans   348,411       604,790       489,216       568,383       565,768  
Total loans and leases excluding PPP loans $ 6,671,864     $ 6,662,762     $ 6,780,337     $ 6,827,975     $ 6,841,929  
           
Allowance for loan and lease losses as a percentage of total loans and leases less PPP loans   1.60 %     1.65 %     1.69 %     1.76 %     1.75 %
           

PDF available: http://ml.globenewswire.com/Resource/Download/3f779060-7808-4880-a3fd-8d7f736854e2


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Source: Brookline Bancorp, Inc.