Brookline Bancorp Announces First Quarter Results

Net Income of $26.5 million, EPS of $0.34

Quarterly Dividend Increase of 4.3%

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

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

BALANCE SHEET

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

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

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

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

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

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

NET INTEREST INCOME

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

NON-INTEREST INCOME

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

PROVISION FOR CREDIT LOSSES

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

The Company recorded a negative provision for credit losses of $2.1 million for the quarter ended March 31, 2021, compared to a negative provision for credit losses of $2.1 million for the quarter ended December 31, 2020.

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

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

ASSET QUALITY

The ratio of nonperforming loans and leases to total loans and leases was 0.43 percent at March 31, 2021, a decrease from 0.53 percent at December 31, 2020. Total nonaccrual loans and leases decreased $7.4 million to $31.0 million at March 31, 2021 from $38.4 million at December 31, 2020. The ratio of nonperforming assets to total assets was 0.44 percent at March 31, 2021, a decrease from 0.50 percent at December 31, 2020. Total nonperforming assets decreased $7.6 million to $37.4 million at March 31, 2021 from $45.0 million at December 31, 2020.

From March 1, 2020 through the earlier of January 1, 2022 or 60 days after the termination date of the national emergency declared by the President on March 13, 2020 concerning the COVID-19 outbreak (the “national emergency”), a financial institution may elect to suspend the requirements under accounting principles generally accepted in the U.S. for loan modifications related to the COVID-19 pandemic that would otherwise be categorized as a troubled debt restructured, including impairment accounting. This troubled debt restructuring relief applies for the term of the loan modification that occurs during the applicable period for a loan that was not more than 30 days past due as of December 31, 2019. Financial institutions are required to maintain records of the volume of loans involved in modifications to which troubled debt restructuring relief is applicable. As of March 31, 2021, approximately 88 percent of loans granted an initial loan payment deferral have returned to payment status and 341 credits totaling $126 million or 1.7 percent of total loans outstanding are operating under modified terms.

NON-INTEREST EXPENSE

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

PROVISION FOR INCOME TAXES

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

RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

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

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

DIVIDEND DECLARED

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

CONFERENCE CALL

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

ABOUT BROOKLINE BANCORP, INC.

Brookline Bancorp, Inc., a bank holding company with $8.6 billion in assets and branch locations in Massachusetts and Rhode Island, is headquartered in Boston, Massachusetts and operates as the holding company for Brookline Bank and Bank Rhode Island (the "banks"). The Company provides commercial and retail banking services, cash management and investment services to customers throughout Central New England. More information about Brookline Bancorp, Inc. and its banks can be found at the following websites: www.brooklinebank.com and www.bankri.com. 

FORWARD-LOOKING STATEMENTS

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

BASIS OF PRESENTATION

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

NON-GAAP FINANCIAL MEASURES

The Company uses certain non-GAAP financial measures, such as operating earnings, operating return on average assets, operating return on average tangible assets, operating return on average stockholders' equity, operating return on average tangible stockholders' equity, the allowance for loan and lease losses related to originated loans and leases as a percentage of originated loans and leases, tangible book value per common share, tangible stockholders’ equity to tangible assets, return on average tangible assets (annualized) and return on average tangible stockholders' equity (annualized). These non-GAAP financial measures provide information for investors to effectively analyze financial trends of ongoing business activities, and to enhance comparability with peers across the financial services sector. A detailed reconciliation table of the Company's GAAP to the non-GAAP measures is attached.

INVESTOR RELATIONS:

Contact:         
Carl M. Carlson
Brookline Bancorp, Inc.
Chief Financial Officer
[phone]
[e-mail] 

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Selected Financial Highlights (Unaudited)
	At and for the Three Months Ended
	March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020			March 31, 2020
	(Dollars In Thousands Except per Share Data)
Earnings Data:
Net interest income	$	69,109		$	68,225		$	65,938		$	64,288		$	61,712
(Credit) provision for credit losses		(2,147	)		(2,103	)		4,528			5,347			54,114
Non-interest income		4,794			4,219			4,862			6,235			9,328
Non-interest expense		40,811			40,038			40,947			39,109			40,748
Income (loss) before provision for income taxes		35,239			34,509			25,325			26,067			(23,822	)
Net income (loss) attributable to Brookline Bancorp, Inc.		26,454			26,663			18,679			19,571			(17,276	)
Performance Ratios:
Net interest margin (1)		3.39	%		3.23	%		3.08	%		3.09	%		3.31	%
Interest-rate spread (1)		3.15	%		3.03	%		2.85	%		2.75	%		2.91	%
Return on average assets (annualized)		1.21	%		1.20	%		0.83	%		0.88	%		(0.87	)%
Return on average tangible assets (annualized) (non-GAAP)		1.24	%		1.22	%		0.84	%		0.90	%		(0.89	)%
Return on average stockholders' equity (annualized)		11.18	%		11.38	%		7.99	%		8.45	%		(7.30	)%
Return on average tangible stockholders' equity (annualized) (non-GAAP)		13.51	%		13.79	%		9.70	%		10.28	%		(8.84	)%
Efficiency ratio (2)		55.22	%		55.27	%		57.83	%		55.46	%		57.36	%
Per Common Share Data:
Net income (loss) — Basic	$	0.34		$	0.34		$	0.24		$	0.25		$	(0.22	)
Net income (loss) — Diluted		0.34			0.34			0.24			0.25			(0.22	)
Cash dividends declared		0.120			0.115			0.115			0.115			0.115
Book value per share (end of period)		12.10			12.05			11.84			11.75			11.57
Tangible book value per share (end of period) (non-GAAP)		10.01			9.96			9.77			9.67			9.49
Stock price (end of period)		15.00			12.04			8.65			10.08			11.28
Balance Sheet:
Total assets	$	8,559,810		$	8,942,424		$	9,000,192		$	9,069,667		$	8,461,591
Total loans and leases		7,267,552			7,269,553			7,396,358			7,407,697			6,822,527
Total deposits		6,866,786			6,910,696			6,792,523			6,440,233			5,889,938
Brookline Bancorp, Inc. stockholders’ equity		945,399			941,778			935,558			926,413			912,568
Asset Quality:
Nonperforming assets	$	37,403		$	44,963		$	39,365		$	42,754		$	41,122
Nonperforming assets as a percentage of total assets		0.44	%		0.50	%		0.44	%		0.47	%		0.49	%
Allowance for loan and lease losses	$	109,837		$	114,379		$	119,971		$	119,553		$	113,181
Allowance for loan and lease losses as a percentage of total loans and leases		1.51	%		1.57	%		1.62	%		1.61	%		1.66	%
Net loan and lease charge-offs	$	1,760		$	4,381		$	4,963		$	1,383		$	2,234
Net loan and lease charge-offs as a percentage of average loans and leases (annualized)		0.10	%		0.24	%		0.27	%		0.08	%		0.13	%
Capital Ratios:
Stockholders’ equity to total assets		11.04	%		10.53	%		10.39	%		10.21	%		10.78	%
Tangible stockholders’ equity to tangible assets (non-GAAP)		9.31	%		8.86	%		8.73	%		8.56	%		9.02	%
(1) Calculated on a fully tax-equivalent basis.
(2) Calculated as non-interest expense as a percentage of net interest income plus non-interest income.

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets (Unaudited)
	March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020			March 31, 2020
ASSETS	(In Thousands Except Share Data)
Cash and due from banks	$	41,284		$	36,069		$	33,818		$	38,522		$	86,996
Short-term investments		89,643			398,848			283,515			216,394			253,772
Total cash and cash equivalents		130,927			434,917			317,333			254,916			340,768
Investment securities available-for-sale		729,901			745,822			783,867			854,505			761,539
Investment securities held-to-maturity		-			-			-			-			-
Equity securities held-for-trading		518			526			525			1,992			2,558
Total investment securities		730,419			746,348			784,392			856,497			764,097
Loans and leases:
Commercial real estate loans		3,790,341			3,823,826			3,835,372			3,837,703			3,762,158
Commercial loans and leases		2,324,202			2,274,899			2,354,613			2,361,463			1,826,866
Consumer loans		1,153,009			1,170,828			1,206,373			1,208,531			1,233,503
Total loans and leases		7,267,552			7,269,553			7,396,358			7,407,697			6,822,527
Allowance for loan and lease losses		(109,837	)		(114,379	)		(119,971	)		(119,553	)		(113,181	)
Net loans and leases		7,157,715			7,155,174			7,276,387			7,288,144			6,709,346
Restricted equity securities		40,400			49,786			61,715			71,638			68,472
Premises and equipment, net of accumulated depreciation		72,524			71,568			72,441			73,127			73,786
Right-of-use asset operating leases		23,180			24,143			23,492			24,343			24,789
Deferred tax asset		42,857			40,129			42,269			42,683			38,141
Goodwill		160,427			160,427			160,427			160,427			160,427
Identified intangible assets, net of accumulated amortization		2,920			3,152			3,464			3,775			4,087
Other real estate owned and repossessed assets		6,383			6,515			1,413			1,454			2,038
Other assets		192,058			250,265			256,859			292,663			275,640
Total assets	$	8,559,810		$	8,942,424		$	9,000,192		$	9,069,667		$	8,461,591
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand checking accounts	$	1,724,170		$	1,592,205		$	1,550,267		$	1,603,037		$	1,175,329
NOW accounts		481,988			513,948			459,902			417,622			361,854
Savings accounts		724,504			701,659			716,630			657,758			653,026
Money market accounts		2,192,468			2,018,977			1,878,258			1,809,868			1,676,092
Certificate of deposit accounts		1,273,105			1,389,998			1,492,913			1,601,768			1,669,509
Brokered deposit accounts		470,551			693,909			694,553			350,180			354,128
Total deposits		6,866,786			6,910,696			6,792,523			6,440,233			5,889,938
Borrowed funds:
Advances from the FHLBB		378,646			648,849			841,169			1,267,570			1,137,431
Subordinated debentures and notes		83,783			83,746			83,707			83,668			83,630
Other borrowed funds		83,574			87,652			80,169			55,431			70,743
Total borrowed funds		546,003			820,247			1,005,045			1,406,669			1,291,804
Operating lease liabilities		23,180			24,143			23,492			24,343			24,789
Mortgagors’ escrow accounts		6,483			5,901			6,429			6,467			7,441
Reserve for unfunded credits		13,705			13,071			13,964			14,816			17,222
Accrued expenses and other liabilities		158,254			226,588			223,181			250,726			317,829
Total liabilities		7,614,411			8,000,646			8,064,634			8,143,254			7,549,023
Stockholders' equity:
Brookline Bancorp, Inc. stockholders’ equity:
Common stock, $0.01 par value; 200,000,000 shares authorized; 85,177,172 shares issued, 85,177,172 shares issued, 85,177,172 shares issued, 85,177,172 shares issued, and 85,177,172 shares issued, respectively		852			852			852			852			852
Additional paid-in capital		737,882			737,178			736,294			738,155			737,422
Retained earnings, partially restricted		282,301			264,892			247,336			237,808			227,359
Accumulated other comprehensive income		2,082			16,490			18,782			19,538			16,947
Treasury stock, at cost;
6,534,602, 6,525,783, 5,629,854, 5,859,708, and 5,862,811 shares, respectively		(77,463	)		(77,343	)		(67,376	)		(69,572	)		(69,617	)
Unallocated common stock held by the Employee Stock Ownership Plan;
44,502, 51,114, 58,227, 65,334, and 72,441 shares, respectively		(255	)		(291	)		(330	)		(368	)		(395	)
Total stockholders' equity		945,399			941,778			935,558			926,413			912,568
Total liabilities and stockholders' equity	$	8,559,810		$	8,942,424		$	9,000,192		$	9,069,667		$	8,461,591

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

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Asset Quality Analysis (Unaudited)
	At and for the Three Months Ended
	March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020			March 31, 2020
	(Dollars in Thousands)
NONPERFORMING ASSETS:
Loans and leases accounted for on a nonaccrual basis:
Commercial real estate mortgage	$	3,611		$	3,300		$	10,841		$	10,139		$	10,937
Multi-family mortgage		-			-			-			-			85
Construction		3,853			3,853			-			-			-
Total commercial real estate loans		7,464			7,153			10,841			10,139			11,022
Commercial		3,161			7,702			7,751			12,427			12,991
Equipment financing		15,772			16,757			13,372			13,100			10,356
Condominium association		106			112			117			190			203
Total commercial loans and leases		19,039			24,571			21,240			25,717			23,550
Residential mortgage		3,722			5,587			4,634			4,157			3,446
Home equity		793			1,136			1,235			1,278			1,059
Other consumer		2			1			2			9			7
Total consumer loans		4,517			6,724			5,871			5,444			4,512
Total nonaccrual loans and leases		31,020			38,448			37,952			41,300			39,084
Other real estate owned		5,328			5,415			-			-			-
Other repossessed assets		1,055			1,100			1,413			1,454			2,038
Total nonperforming assets	$	37,403		$	44,963		$	39,365		$	42,754		$	41,122
Loans and leases past due greater than 90 days and still accruing	$	1,179		$	11,975		$	1,180		$	1,974		$	1,045
Troubled debt restructurings on accrual		16,770			11,483			11,309			10,172			16,480
Troubled debt restructurings on nonaccrual		6,293			7,476			5,742			5,972			5,819
Total troubled debt restructurings	$	23,063		$	18,959		$	17,051		$	16,144		$	22,299
Nonperforming loans and leases as a percentage of total loans and leases		0.43	%		0.53	%		0.51	%		0.56	%		0.57	%
Nonperforming assets as a percentage of total assets		0.44	%		0.50	%		0.44	%		0.47	%		0.49	%
PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:
Allowance for loan and lease losses at beginning of period	$	114,379		$	119,971		$	119,553		$	113,181		$	61,082
CECL adjustment to retained earnings		-			-			-			-			6,632
Charge-offs		(2,143	)		(4,810	)		(5,511	)		(1,803	)		(2,539	)
Recoveries		383			429			548			420			305
Net charge-offs		(1,760	)		(4,381	)		(4,963	)		(1,383	)		(2,234	)
Provision for loan and lease losses excluding unfunded commitments *		(2,782	)		(1,211	)		5,381			7,755			47,701
Allowance for loan and lease losses at end of period	$	109,837		$	114,379		$	119,971		$	119,553		$	113,181
Allowance for loan and lease losses as a percentage of total loans and leases		1.51	%		1.57	%		1.62	%		1.61	%		1.66	%
NET CHARGE-OFFS:
Commercial real estate loans	$	-		$	3,444		$	70		$	(94	)	$	-
Commercial loans and leases		1,809			1,011			4,917			1,498			2,280
Consumer loans		(49	)		(74	)		(24	)		(21	)		(46	)
Total net charge-offs	$	1,760		$	4,381		$	4,963		$	1,383		$	2,234
Net loan and lease charge-offs as a percentage of average loans and leases (annualized)		0.10	%		0.24	%		0.27	%		0.08	%		0.13	%
*Provision for loan and lease losses does not include provision (credit) of $0.6 million, $(0.9) million, $(0.9) million, $2.4 million and $6.4 million for credit losses on unfunded commitments during the three months ended March 31, 2021, December 31, 2020, September 30, 2020, June 30, 2020 and March 31, 2020, respectively.

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Average Yields / Costs (Unaudited)
	Three Months Ended
	March 31, 2021						December 31, 2020						March 31, 2020
	Average Balance		Interest (1)		Average Yield/ Cost		Average Balance		Interest (1)		Average Yield/ Cost		Average Balance		Interest (1)		Average Yield/ Cost
	(Dollars in Thousands)
Assets:
Interest-earning assets:
Investments:
Debt securities (2)	$	754,699	$	3,118	1.65	%	$	770,414	$	3,334	1.73	%	$	605,885	$	3,024	2.00	%
Marketable and restricted equity securities (2)		45,673		301	2.64	%		51,469		491	3.81	%		58,881		786	5.33	%
Short-term investments		191,751		39	0.08	%		223,665		59	0.10	%		84,309		209	0.99	%
Total investments		992,123		3,458	1.39	%		1,045,548		3,884	1.49	%		749,075		4,019	2.15	%
Loans and Leases:
Commercial real estate loans (3)		3,785,897		34,245	3.62	%		3,833,172		35,526	3.63	%		3,697,011		40,468	4.33	%
Commercial loans (3)		1,249,824		12,746	4.08	%		1,260,883		11,936	3.71	%		783,309		8,328	4.21	%
Equipment financing (3)		1,079,039		18,043	6.69	%		1,086,855		18,626	6.86	%		1,052,846		18,946	7.20	%
Residential mortgage loans (3)		780,785		7,232	3.71	%		803,884		7,530	3.75	%		810,583		7,934	3.92	%
Other consumer loans (3)		375,590		2,795	3.02	%		385,818		3,020	3.10	%		417,815		3,955	3.79	%
Total loans and leases		7,271,135		75,061	4.13	%		7,370,612		76,638	4.16	%		6,761,564		79,631	4.71	%
Total interest-earning assets		8,263,258		78,519	3.80	%		8,416,160		80,522	3.83	%		7,510,639		83,650	4.46	%
Non-interest-earning assets		450,900						458,307						455,187
Total assets	$	8,714,158					$	8,874,467					$	7,965,826
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts	$	477,893		130	0.11	%	$	451,014		126	0.11	%	$	359,641		116	0.13	%
Savings accounts		712,728		235	0.13	%		701,378		245	0.14	%		626,945		643	0.41	%
Money market accounts		2,084,503		1,486	0.29	%		1,947,686		1,546	0.32	%		1,678,649		4,241	1.02	%
Certificates of deposit		1,328,112		4,154	1.27	%		1,452,867		5,718	1.57	%		1,682,900		9,251	2.21	%
Brokered deposit accounts		610,824		702	0.47	%		746,281		1,190	0.63	%		358,003		1,989	2.23	%
Total interest-bearing deposits		5,214,060		6,707	0.52	%		5,299,226		8,825	0.66	%		4,706,138		16,240	1.39	%
Borrowings
Advances from the FHLBB		488,537		1,370	1.12	%		619,844		2,118	1.34	%		772,462		4,097	2.10	%
Subordinated debentures and notes		83,764		1,242	5.93	%		83,725		1,245	5.95	%		83,609		1,284	6.14	%
Other borrowed funds		92,391		39	0.17	%		81,320		54	0.26	%		91,052		189	0.84	%
Total borrowings		664,692		2,651	1.60	%		784,889		3,417	1.70	%		947,123		5,570	2.33	%
Total interest-bearing liabilities		5,878,752		9,358	0.65	%		6,084,115		12,242	0.80	%		5,653,261		21,810	1.55	%
Non-interest-bearing liabilities:
Demand checking accounts		1,643,373						1,587,618						1,134,314
Other non-interest-bearing liabilities		245,551						265,440						232,113
Total liabilities		7,767,676						7,937,173						7,019,688
Stockholders’ equity		946,482						937,294						946,138
Total liabilities and equity	$	8,714,158					$	8,874,467					$	7,965,826
Net interest income (tax-equivalent basis) /Interest-rate spread (4)				69,161	3.15	%				68,280	3.03	%				61,840	2.91	%
Less adjustment of tax-exempt income				52						55						128
Net interest income			$	69,109					$	68,225					$	61,712
Net interest margin (5)					3.39	%					3.23	%					3.31	%
(1) Tax-exempt income on debt securities, equity securities and revenue bonds included in commercial real estate loans is included on a tax-equivalent basis.
(2) Average balances include unrealized gains (losses) on investment securities. Dividend payments may not be consistent and average yield on equity securities may vary from month to month.
(3) Loans on nonaccrual status are included in the average balances.
(4) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
(5) Net interest margin represents net interest income (tax-equivalent basis) divided by average interest-earning assets on an actual/actual basis.

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Non-GAAP Financial Information (Unaudited)
										At and for the Three Months Ended March 31,
											2021			2020
Reconciliation Table - Non-GAAP Financial Information										(Dollars in Thousands Except Share Data)
Net income attributable to Brookline Bancorp, Inc.										$	26,454		$	(17,276	)
Less:
Security gains (losses) (after-tax)											(5	)		964
Operating earnings										$	26,459		$	(18,240	)
Operating earnings per common share:
Basic										$	0.34		$	(0.23	)
Diluted											0.34			(0.23	)
Weighted average common shares outstanding during the period:
Basic											78,143,752			79,481,462
Diluted											78,404,063			79,665,774
Return on average assets *											1.21	%		(0.87	)%
Less:
Security gains (losses) (after-tax) *											-	%		0.05	%
Operating return on average assets *											1.21	%		(0.92	)%
Return on average tangible assets *											1.24	%		(0.89	)%
Less:
Security gains (losses) (after-tax) *											-	%		0.05	%
Operating return on average tangible assets *											1.24	%		(0.94	)%
Return on average stockholders' equity *											11.18	%		(7.30	)%
Less:
Security gains (losses) (after-tax) *											-	%		0.41	%
Operating return on average stockholders' equity *											11.18	%		(7.71	)%
Return on average tangible stockholders' equity *											13.51	%		(8.84	)%
Less:
Security gains (losses) (after-tax) *											-	%		0.49	%
Operating return on average tangible stockholders' equity *											13.51	%		(9.33	)%
* Ratios at and for the three months ended are annualized.
	At and for the Three Months Ended
	March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020			March 31, 2020
	(Dollars in Thousands)
Net income (loss), as reported	$	26,454		$	26,663		$	18,679		$	19,571		$	(17,276	)
Average total assets	$	8,714,158		$	8,874,467		$	9,018,672		$	8,869,540		$	7,965,826
Less: Average goodwill and average identified intangible assets, net		163,457			163,758			164,072			164,385			164,701
Average tangible assets	$	8,550,701		$	8,710,709		$	8,854,600		$	8,705,155		$	7,801,125
Return on average tangible assets (annualized)		1.24	%		1.22	%		0.84	%		0.90	%		(0.89	)%
Average total stockholders’ equity	$	946,482		$	937,294		$	934,632		$	926,239		$	946,138
Less: Average goodwill and average identified intangible assets, net		163,457			163,758			164,072			164,385			164,701
Average tangible stockholders’ equity	$	783,025		$	773,536		$	770,560		$	761,854		$	781,437
Return on average tangible stockholders’ equity (annualized)		13.51	%		13.79	%		9.70	%		10.28	%		(8.84	)%
Brookline Bancorp, Inc. stockholders’ equity	$	945,399		$	941,778		$	935,558		$	926,413		$	912,568
Less:
Goodwill		160,427			160,427			160,427			160,427			160,427
Identified intangible assets, net		2,920			3,152			3,464			3,775			4,087
Tangible stockholders' equity	$	782,052		$	778,199		$	771,667		$	762,211		$	748,054
Total assets	$	8,559,810		$	8,942,424		$	9,000,192		$	9,069,667		$	8,461,591
Less:
Goodwill		160,427			160,427			160,427			160,427			160,427
Identified intangible assets, net		2,920			3,152			3,464			3,775			4,087
Tangible assets	$	8,396,463		$	8,778,845		$	8,836,301		$	8,905,465		$	8,297,077
Tangible stockholders’ equity to tangible assets		9.31	%		8.86	%		8.73	%		8.56	%		9.02	%
Tangible stockholders' equity	$	782,052		$	778,199		$	771,667		$	762,211		$	748,054
Number of common shares issued		85,177,172			85,177,172			85,177,172			85,177,172			85,177,172
Less:
Treasury shares		6,534,602			6,525,783			5,629,854			5,859,708			5,862,811
Unallocated ESOP shares		44,502			51,114			58,227			65,334			72,441
Unvested restricted shares		449,981			458,800			487,318			398,188			395,085
Number of common shares outstanding		78,148,087			78,141,475			79,001,773			78,853,942			78,846,835
Tangible book value per common share	$	10.01		$	9.96		$	9.77		$	9.67		$	9.49
Allowance for loan and lease losses	$	109,837		$	114,379		$	119,971		$	119,553		$	113,181
Total loans and leases	$	7,267,552		$	7,269,553		$	7,396,358		$	7,407,697		$	6,822,527
Less:
Total PPP loans		604,790			489,216			568,383			565,768			-
Total loans and leases excluding PPP loans	$	6,662,762		$	6,780,337		$	6,827,975		$	6,841,929		$	6,822,527
Allowance for loan and lease losses as a percentage of total loans and leases less PPP loans		1.65	%		1.69	%		1.76	%		1.75	%		1.66	%