Brookline Bancorp Announces Fourth Quarter Results

Net Income of $28.5 million, EPS of $0.37


BOSTON, Jan. 26, 2022 (GLOBE NEWSWIRE) -- Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced net income of $28.5 million, or $0.37 per basic and diluted share, for the fourth quarter of 2021, compared to $28.8 million, or $0.37 per basic and diluted share, for the third quarter of 2021, and $26.7 million, or $0.34 per basic and diluted share, for the fourth quarter of 2020.

For the year ended December 31, 2021, the Company reported record net income of $115.4 million, or $1.48 per basic and diluted share. This compared to $47.6 million, or $0.60 per basic and diluted share, for the year ended December 31, 2020.

Paul Perrault, Chairman and Chief Executive Officer commented on the Company’s performance, “I am pleased with our strong financial performance and earnings growth in 2021. We finished the year with exceptional loan growth and we are well positioned as we look forward to the coming year.  In the fourth quarter we continued to build on our legacy of providing our customers with an array of robust financial offerings by launching Clarendon Private, an investment and wealth management company. This past year was challenging in many respects, and I would like to recognize our employees for their hard work and dedication throughout the year providing exceptional service to our customers. As we continue to navigate these challenging times, we remain cautiously optimistic for the future.”

BALANCE SHEET

Total assets at December 31, 2021 increased $290.0 million to $8.6 billion from $8.3 billion at September 30, 2021, and decreased $339.8 million from $8.9 billion at December 31, 2020. At December 31, 2021, total loans and leases were $7.2 billion, representing an increase of $222.8 million from September 30, 2021, and a decrease of $115.1 million from December 31, 2020.

The Company funded a total of 4,700 of Small Business Administration's Paycheck Protection Program ("PPP") loans in the aggregate amount of $872.1 million. As of December 31, 2021, $67.7 million in PPP loans remain outstanding, net of deferred fees and costs of $1.7 million. Excluding PPP loan activity, the core loan portfolio grew $315.6 million in the fourth quarter compared to growth of $99.2 million in the third quarter.

Total investment securities at December 31, 2021 decreased $11.2 million to $720.9 million from $732.0 million at September 30, 2021, and decreased $25.5 million from $746.3 million at December 31, 2020. Total cash and cash equivalents at December 31, 2021 increased $88.6 million to $327.7 million from $239.1 million at September 30, 2021, and decreased $107.2 million from $434.9 million at December 31, 2020. As of December 31, 2021, total investment securities and total cash and cash equivalents represented 12.2 percent of total assets as compared to 11.7 percent and 13.2 percent as of September 30, 2021 and December 31, 2020, respectively.

Total deposits at December 31, 2021 increased $176.9 million to $7.05 billion from $6.87 billion at September 30, 2021 and increased $139.2 million from $6.91 billion at December 31, 2020.

Total borrowed funds at December 31, 2021 increased $89.8 million to $357.3 million from $267.5 million at September 30, 2021 and decreased $462.9 million from $820.2 million at December 31, 2020.

The ratio of stockholders’ equity to total assets was 11.57 percent at December 31, 2021, as compared to 11.77 percent at September 30, 2021, and 10.53 percent at December 31, 2020. The ratio of tangible stockholders’ equity to tangible assets (non-GAAP) was 9.87 percent at December 31, 2021, as compared to 10.01 percent at September 30, 2021, and 8.86 percent at December 31, 2020. Tangible book value per common share (non-GAAP) increased $0.22 from $10.51 at September 30, 2021 to $10.73 at December 31, 2021, compared to $9.96 at December 31, 2020.

NET INTEREST INCOME

Net interest income increased $0.8 million to $71.5 million during the fourth quarter of 2021 from $70.7 million for the quarter ended September 30, 2021. The net interest margin decreased 1 basis point to 3.52 percent for the three months ended December 31, 2021 from 3.53 percent for the three months ended September 30, 2021.

NON-INTEREST INCOME

Total non-interest income for the quarter ended December 31, 2021 increased $5.1 million to $10.7 million from $5.6 million for the quarter ended September 30, 2021. The increase was primarily driven by increases of $3.8 million in loan level derivative income, net, and $1.4 million in gain on sales of loans and leases.

PROVISION FOR CREDIT LOSSES

The Company recorded a provision for credit losses of $0.8 million for the quarter ended December 31, 2021, compared to a negative provision of $3.1 million for the quarter ended September 30, 2021. Total net charge-offs for the fourth quarter of 2021 were $2.1 million compared to $1.3 million in the third quarter of 2021. The increase was primarily driven by an increase in net charge-offs on equipment financing loans of $0.9 million, partially offset by a decrease in net charge-offs on commercial loans of $0.1 million. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis increased to 12 basis points for the fourth quarter of 2021 from 7 basis points for the third quarter of 2021.

The allowance for loan and lease losses represented 1.38 percent of total loans and leases at December 31, 2021, compared to 1.48 percent at September 30, 2021, and 1.57 percent at December 31, 2020. Excluding PPP loans, the allowance for loan and lease losses represents 1.40 percent coverage at December 31, 2021 compared to 1.51 percent at September 30, 2021, and 1.69 percent at December 31, 2020.

ASSET QUALITY

The ratio of total nonperforming loans and leases to total loans and leases was 0.45 percent at December 31, 2021 as compared to 0.52 percent at September 30, 2021. Nonperforming loans and leases decreased $3.4 million to $32.5 million at December 31, 2021 from $35.9 million at September 30, 2021. The ratio of nonperforming assets to total assets was 0.39 percent at December 31, 2021 as compared to 0.44 percent at September 30, 2021. Nonperforming assets decreased $3.3 million to $33.2 million at December 31, 2021 from $36.5 million at September 30, 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 December 31, 2021, approximately 96 percent of loans granted an initial loan payment deferral have returned to payment status and 98 credits totaling $38.1 million or 0.5 percent of total loans outstanding have been modified.

NON-INTEREST EXPENSE

Non-interest expense for the quarter ended December 31, 2021 increased $2.0 million to $42.9 million from $40.9 million for the quarter ended September 30, 2021. The increase was primarily driven by increases of $1.4 million in compensation and employee benefits and $0.7 million in other non-interest expense, partially offset by a decrease of $0.2 million in advertising and marketing expense.

PROVISION FOR INCOME TAXES

The effective tax rate was 25.9 percent and 25.3 percent for the three and twelve months ended December 31, 2021, respectively.

RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

The annualized return on average assets decreased to 1.35 percent during the fourth quarter of 2021 compared to 1.38 percent for the third quarter of 2021; and was 1.36 percent for the year ended December 31, 2021, compared to 0.55 percent for the year ended December 31, 2020.

The annualized return on average tangible stockholders' equity decreased to 13.84 percent during the fourth quarter of 2021 compared to 14.15 percent for the third quarter of 2021; and was 14.35 percent for the year ended December 31, 2021 compared to 6.17 percent for the year ended December 31, 2020.

DIVIDEND DECLARED

The Company’s Board approved a dividend of $0.125 per share for the quarter ended December 31, 2021. The dividend will be paid on February 25, 2022 to stockholders of record on February 11, 2022.

CONFERENCE CALL

The Company will conduct a conference call/webcast at 1:30 PM Eastern Time on Thursday, January 27, 2022 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/brkl220127.html. To listen to the call without access to the slides, please dial 844-200-6205 (United States) or 929-526-1599 (internationally) and ask for the Brookline Bancorp, Inc. call (Access Code 817809). 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 866-813-9403 (United States) or 1-929-458-6194 (internationally) and entering the passcode: 342504.

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. We may also make forward-looking statements in other documents we file with the Securities and Exchange Commission ("SEC"), in our annual reports to shareholders, in press releases and other written materials, and in oral statements made by our officers, directors or employees. You can identify forward looking statements by the use of the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “assume,” “outlook,” “will,” “should,” and other expressions that predict or indicate future events and trends and which do not relate to historical matters, including statements regard the potential effects of the COVID-19 pandemic on the Company’s business, credit quality, financial condition, liquidity and results of operations. Forward-looking statements involve risks and uncertainties. The Company’s actual results could differ materially from those projected in the forward-looking statements as a result of, among other factors, ongoing disruptions due to the COVID-19 pandemic, 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; turbulence in capital and debt markets; and 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 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 EndedAt and for the Twelve
Months Ended
 December 31,
2021
 September 30,
2021
June 30,
2021
March 31,
2021
December 31,
2020
December 31,
2021
December 31,
2020
 (Dollars In Thousands Except per Share Data)
Earnings Data:        
Net interest income$71,461  $70,697 $71,106 $69,109 $68,225 $282,373 $260,163 
Provision (credit) for credit losses 751   (3,110) (3,331) (2,147) (2,103) (7,837) 61,886 
Non-interest income 10,699   5,586  5,910  4,794  4,219  26,989  24,644 
Non-interest expense 42,909   40,922  37,966  40,811  40,038  162,608  160,844 
Income before provision for income taxes 38,500   38,471  42,381  35,239  34,509  154,591  62,077 
Net income 28,545   28,839  31,602  26,454  26,663  115,440  47,635 
         
Performance Ratios:        
Net interest margin (1) 3.52%  3.53% 3.52% 3.39% 3.23% 3.49% 3.17%
Interest-rate spread (1) 3.42%  3.39% 3.34% 3.15% 3.03% 3.32% 2.88%
Return on average assets (annualized) 1.35%  1.38% 1.48% 1.21% 1.20% 1.36% 0.55%
Return on average tangible assets (annualized) (non-GAAP) 1.38%  1.41% 1.51% 1.24% 1.22% 1.38% 0.56%
Return on average stockholders' equity (annualized) 11.56%  11.79% 13.21% 11.18% 11.38% 11.93% 5.09%
Return on average tangible stockholders' equity (annualized) (non-GAAP) 13.84%  14.15% 15.92% 13.51% 13.79% 14.35% 6.17%
Efficiency ratio (2) 52.23%  53.64% 49.30% 55.22% 55.27% 52.56% 56.47%
         
Per Common Share Data:        
Net income — Basic$0.37  $0.37 $0.40 $0.34 $0.34 $1.48 $0.60 
Net income — Diluted 0.37   0.37  0.40  0.34  0.34  1.48  0.60 
Cash dividends declared 0.125   0.125  0.120  0.120  0.115  0.490  0.460 
Book value per share (end of period) 12.82   12.61  12.44  12.10  12.05  12.82  12.05 
Tangible book value per common share (end of period) (non-GAAP) 10.73   10.51  10.35  10.01  9.96  10.73  9.96 
Stock price (end of period) 16.19   15.26  14.95  15.00  12.04  16.19  12.04 
         
Balance Sheet:        
Total assets$8,602,622  $8,312,649 $8,461,964 $8,559,810 $8,942,424 $8,602,622 $8,942,424 
Total loans and leases 7,154,457   6,931,694  7,020,275  7,267,552  7,269,553  7,154,457  7,269,553 
Total deposits 7,049,906   6,873,010  6,894,701  6,866,786  6,910,696  7,049,906  6,910,696 
Total stockholders’ equity 995,342   978,452  972,252  945,399  941,778  995,342  941,778 
         
Asset Quality:        
Nonperforming assets$33,177  $36,461 $34,588 $37,403 $44,963 $33,177 $44,963 
Nonperforming assets as a percentage of total assets 0.39%  0.44% 0.41% 0.44% 0.50% 0.39% 0.50%
Allowance for loan and lease losses$99,084  $102,515 $106,474 $109,837 $114,379 $99,084 $114,379 
Allowance for loan and lease losses as a percentage of total loans and leases 1.38%  1.48% 1.52% 1.51% 1.57% 1.38% 1.57%
Net loan and lease charge-offs$2,124  $1,255 $595 $1,760 $4,381 $5,734 $12,961 
Net loan and lease charge-offs as a percentage of average loans and leases (annualized) 0.12%  0.07% 0.03% 0.10% 0.24% 0.08% 0.18%
         
Capital Ratios:        
Stockholders’ equity to total assets 11.57%  11.77% 11.49% 11.04% 10.53% 11.57% 10.53%
Tangible stockholders’ equity to tangible assets (non-GAAP) 9.87%  10.01% 9.75% 9.31% 8.86% 9.87% 8.86%
         
(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,
2021
September 30,
2021
June 30,
2021
March 31,
2021
December 31,
2020
ASSETS(In Thousands Except Share Data) 
Cash and due from banks$66,265$28,865$36,079$41,284$36,069
Short-term investments261,472210,279284,37089,643398,848
Total cash and cash equivalents327,737239,144320,449130,927434,917
Investment securities available-for-sale720,866732,020694,151729,901745,822
Equity securities held-for-trading---518526
Total investment securities720,866732,020694,151730,419746,348
Loans and leases:     
Commercial real estate loans4,103,0403,909,0113,815,5813,790,3413,823,826
Commercial loans and leases1,887,1361,869,6862,038,8512,324,2022,274,899
Consumer loans1,164,2811,152,9971,165,8431,153,0091,170,828
Total loans and leases7,154,4576,931,6947,020,2757,267,5527,269,553
Allowance for loan and lease losses(99,084)(102,515)(106,474)(109,837)(114,379)
Net loans and leases7,055,3736,829,1796,913,8017,157,7157,155,174
Restricted equity securities28,98128,09831,62740,40049,786
Premises and equipment, net of accumulated depreciation70,35970,81171,24072,52471,568
Right-of-use asset operating leases20,50821,87922,68223,18024,143
Deferred tax asset38,98739,64341,32442,85740,129
Goodwill160,427160,427160,427160,427160,427
Identified intangible assets, net of accumulated amortization2,2762,4842,6922,9203,152
Other real estate owned and repossessed assets7186013726,3836,515
Other assets176,390188,363203,199192,058250,265
Total assets$8,602,622$8,312,649$8,461,964$8,559,810$8,942,424
LIABILITIES AND STOCKHOLDERS' EQUITY     
Deposits:     
Demand checking accounts$1,888,462$1,816,116$1,926,713$1,724,170$1,592,205
NOW accounts604,097513,032495,598481,988513,948
Savings accounts915,804823,095782,482724,504701,659
Money market accounts2,358,3062,393,3622,250,6512,192,4682,018,977
Certificate of deposit accounts1,117,6951,141,8611,178,1311,273,1051,389,998
Brokered deposit accounts165,542185,544261,126470,551693,909
Total deposits7,049,9066,873,0106,894,7016,866,7866,910,696
Borrowed funds:     
Advances from the FHLBB147,907113,977204,154378,646648,849
Subordinated debentures and notes83,89783,85983,82183,78383,746
Other borrowed funds125,51769,70375,03983,57487,652
Total borrowed funds357,321267,539363,014546,003820,247
Operating lease liabilities20,50821,87922,68223,18024,143
Mortgagors’ escrow accounts6,2966,4556,2316,4835,901
Reserve for unfunded credits14,79412,73613,14213,70513,071
Accrued expenses and other liabilities158,455152,578189,942158,254226,588
Total liabilities7,607,2807,334,1977,489,7127,614,4118,000,646
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, respectively852852852852852
Additional paid-in capital736,826735,990738,557737,882737,178
Retained earnings, partially restricted342,639323,862304,466282,301264,892
Accumulated other comprehensive income(110)2,6156,0892,08216,490
Treasury stock, at cost;     
7,037,464 shares, 7,034,754 shares, 6,536,478 shares, 6,534,602 shares, and 6,525,783 shares, respectively(84,718)(84,684)(77,493)(77,463)(77,343)
Unallocated common stock held by the Employee Stock Ownership Plan;     
24,660 shares, 31,278 shares, 37,890 shares, 44,502 shares, and 51,114 shares, respectively(147)(183)(219)(255)(291)
Total stockholders' equity995,342978,452972,252945,399941,778
Total liabilities and stockholders' equity$8,602,622$8,312,649$8,461,964$8,559,810$8,942,424
      


BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
 
 Three Months Ended
 December 31,
2021
September 30,
2021
 June 30,
2021
March 31,
2021
December 31,
2020
 (In Thousands Except Share Data)
Interest and dividend income:      
Loans and leases$73,560 $74,332  $75,026 $75,009 $76,583 
Debt securities 2,972  2,967   3,121  3,118  3,335 
Marketable and restricted equity securities 325  313   233  301  490 
Short-term investments 88  83   42  39  59 
Total interest and dividend income 76,945  77,695   78,422  78,467  80,467 
Interest expense:      
Deposits 4,055  4,571   5,380  6,707  8,825 
Borrowed funds 1,429  2,427   1,936  2,651  3,417 
Total interest expense 5,484  6,998   7,316  9,358  12,242 
Net interest income 71,461  70,697   71,106  69,109  68,225 
Provision (credit) for credit losses 751  (3,110)  (3,331) (2,147) (2,103)
Net interest income after provision for credit losses 70,710  73,807   74,437  71,256  70,328 
Non-interest income:      
Deposit fees 2,653  2,629   3,015  2,281  2,358 
Loan fees 448  487   607  599  588 
Loan level derivative income, net 3,981  218   7  474  145 
(Loss) gain on investment securities, net (32) -   1  (7) - 
Gain on sales of loans and leases held-for-sale 1,933  557   538  709  67 
Other 1,716  1,695   1,742  738  1,061 
Total non-interest income 10,699  5,586   5,910  4,794  4,219 
Non-interest expense:      
Compensation and employee benefits 28,598  27,206   25,161  25,821  25,054 
Occupancy 3,558  3,567   3,832  4,004  3,806 
Equipment and data processing 4,576  4,556   4,697  4,493  4,193 
Professional services 1,151  1,072   1,245  1,226  1,338 
FDIC insurance 617  662   657  1,044  1,630 
Advertising and marketing 880  1,077   1,110  1,100  1,010 
Amortization of identified intangible assets 208  208   228  232  312 
Other 3,321  2,574   1,036  2,891  2,695 
Total non-interest expense 42,909  40,922   37,966  40,811  40,038 
Income before provision for income taxes 38,500  38,471   42,381  35,239  34,509 
Provision for income taxes 9,955  9,632   10,779  8,785  7,846 
Net income$28,545 $28,839  $31,602 $26,454 $26,663 
Earnings per common share:      
Basic$0.37 $0.37  $0.40 $0.34 $0.34 
Diluted$0.37 $0.37  $0.40 $0.34 $0.34 
Weighted average common shares outstanding during the period:     
Basic 77,610,608  78,000,261   78,150,364  78,143,752  78,533,351 
Diluted 77,864,097  78,240,633   78,470,451  78,404,063  78,680,873 
Dividends paid per common share$0.125 $0.120  $0.120 $0.115 $0.115 
       


BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
  
 Twelve Months Ended December 31,
  2021  2020
 (In Thousands Except Share Data)
Interest and dividend income:  
Loans and leases$297,927 $309,798
Debt securities 12,178  13,758
Marketable and restricted equity securities 1,172  2,848
Short-term investments 252  413
Total interest and dividend income 311,529  326,817
Interest expense:  
Deposits 20,713  48,426
Borrowed funds 8,443  18,228
Total interest expense 29,156  66,654
Net interest income 282,373  260,163
(Credit) provision for credit losses (7,837) 61,886
Net interest income after provision for credit losses 290,210  198,277
Non-interest income:  
Deposit fees 10,578  9,050
Loan fees 2,095  2,048
Loan level derivative income, net 4,680  4,268
(Loss) gain on investment securities, net (38) 1,970
Gain on sales of loans and leases held-for-sale 3,737  1,118
Other 5,937  6,190
Total non-interest income 26,989  24,644
Non-interest expense:  
Compensation and employee benefits 106,786  100,985
Occupancy 14,961  15,386
Equipment and data processing 18,322  17,345
Professional services 4,694  5,157
FDIC insurance 2,980  4,229
Advertising and marketing 4,167  4,126
Amortization of identified intangible assets 876  1,271
Other 9,822  12,345
Total non-interest expense 162,608  160,844
Income before provision for income taxes 154,591  62,077
Provision for income taxes 39,151  14,442
Net income$115,440 $47,635
Earnings per common share:  
Basic$1.48 $0.60
Diluted$1.48 $0.60
Weighted average common shares outstanding during the period: 
Basic 77,974,851  78,951,892
Diluted 78,243,416  79,103,289
Dividends paid per common share$0.480 $0.460
   


BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Asset Quality Analysis (Unaudited)
 
 At and for the Three Months Ended
 December 31,
2021
September 30,
2021
June 30,
2021
March 31,
2021
December 31,
2020
 (Dollars in Thousands)
NONPERFORMING ASSETS:     
Loans and leases accounted for on a nonaccrual basis:     
Commercial real estate mortgage$10,848 $10,963 $11,657 $3,611 $3,300 
Multi-family mortgage -  -  -  -  - 
Construction -  -  -  3,853  3,853 
Total commercial real estate loans 10,848  10,963  11,657  7,464  7,153 
      
Commercial 2,318  2,539  3,207  3,161  7,702 
Equipment financing 15,014  17,655  14,872  15,772  16,757 
Condominium association 84  91  97  106  112 
Total commercial loans and leases 17,416  20,285  18,176  19,039  24,571 
      
Residential mortgage 3,909  4,150  3,638  3,722  5,587 
Home equity 285  461  744  793  1,136 
Other consumer 1  1  1  2  1 
Total consumer loans 4,195  4,612  4,383  4,517  6,724 
      
Total nonaccrual loans and leases 32,459  35,860  34,216  31,020  38,448 
      
Other real estate owned -  -  -  5,328  5,415 
Other repossessed assets 718  601  372  1,055  1,100 
Total nonperforming assets$33,177 $36,461 $34,588 $37,403 $44,963 
      
Loans and leases past due greater than 90 days and still accruing$1 $838 $3,154 $1,179 $11,975 
      
Troubled debt restructurings on accrual 12,580  13,526  14,387  16,770  11,483 
Troubled debt restructurings on nonaccrual 6,709  6,655  6,410  6,293  7,476 
Total troubled debt restructurings$19,289 $20,181 $20,797 $23,063 $18,959 
      
Nonperforming loans and leases as a percentage of total loans and leases 0.45% 0.52% 0.49% 0.43% 0.53%
Nonperforming assets as a percentage of total assets 0.39% 0.44% 0.41% 0.44% 0.50%
      
PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:   
Allowance for loan and lease losses at beginning of period$102,515 $106,474 $109,837 $114,379 $119,971 
Charge-offs (2,562) (1,600) (1,221) (2,143) (4,810)
Recoveries 438  345  626  383  429 
Net charge-offs (2,124) (1,255) (595) (1,760) (4,381)
Provision (credit) for loan and lease losses excluding unfunded commitments * (1,307) (2,704) (2,768) (2,782) (1,211)
Allowance for loan and lease losses at end of period$99,084 $102,515 $106,474 $109,837 $114,379 
      
Allowance for loan and lease losses as a percentage of total loans and leases 1.38% 1.48% 1.52% 1.51% 1.57%
      
NET CHARGE-OFFS:     
Commercial real estate loans$- $(1)$17 $- $3,444 
Commercial loans and leases 2,143  1,276  695  1,809  1,011 
Consumer loans (19) (20) (117) (49) (74)
Total net charge-offs$2,124 $1,255 $595 $1,760 $4,381 
      
Net loan and lease charge-offs as a percentage of average loans and leases (annualized) 0.12% 0.07% 0.03% 0.10% 0.24%
      
*Provision for loan and lease losses does not include provision (credit) of $2.1 million, $(0.4) million, $(0.6) million, $0.6 million, and $(0.9) million for credit losses on unfunded commitments during the three months ended December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021, and December 31, 2020 respectively.     
      


BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Average Yields / Costs (Unaudited)
 
 Three Months Ended
 December 31, 2021September 30, 2021December 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)$727,734$2,9721.63%$713,593$2,9671.66%$770,414$3,3341.73%
Marketable and restricted equity securities (2) 27,019 3254.81% 28,877 3134.33% 51,469 4913.81%
Short-term investments 224,573 880.16% 220,110 830.15% 223,665 590.10%
Total investments 979,326 3,3851.38% 962,580 3,3631.40% 1,045,548 3,8841.49%
Loans and Leases:         
Commercial real estate loans (3) 3,996,647 35,7623.50% 3,851,677 35,1243.57% 3,833,172 35,5263.63%
Commercial loans (3) 820,932 10,1464.84% 901,862 11,7155.09% 1,260,883 11,9363.71%
Equipment financing (3) 1,092,457 18,1756.65% 1,079,059 17,7256.57% 1,086,855 18,6266.86%
Residential mortgage loans (3) 796,326 6,7853.41% 788,874 6,9893.54% 803,884 7,5303.75%
Other consumer loans (3) 368,087 2,7512.96% 364,914 2,8303.07% 385,818 3,0203.10%
Total loans and leases 7,074,449 73,6194.16% 6,986,386 74,3834.26% 7,370,612 76,6384.16%
  Total interest-earning assets 8,053,775 77,0043.82% 7,948,966 77,7463.91% 8,416,160 80,5223.83%
Non-interest-earning assets 408,456   411,669   458,307  
Total assets$8,462,231  $8,360,635  $8,874,467  
          
Liabilities and Stockholders' Equity:         
Interest-bearing liabilities:         
Deposits:         
NOW accounts$528,335 1010.08%$502,093 1160.09%$451,014 1260.11%
Savings accounts 897,821 2190.10% 785,657 2480.12% 701,378 2450.14%
Money market accounts 2,430,496 1,6150.26% 2,387,080 1,6160.27% 1,947,686 1,5460.32%
Certificates of deposit 1,129,645 2,0720.73% 1,160,113 2,4300.83% 1,452,867 5,7181.57%
Brokered deposit accounts 116,611 480.16% 216,112 1610.30% 746,281 1,1900.63%
  Total interest-bearing deposits 5,102,908 4,0550.32% 5,051,055 4,5710.36% 5,299,226 8,8250.66%
Borrowings:         
Advances from the FHLBB 76,786 1170.59% 119,043 1,1523.79% 619,844 2,1181.34%
Subordinated debentures and notes 83,878 1,2415.92% 83,840 1,2425.92% 83,725 1,2455.95%
Other borrowed funds 112,137 710.25% 76,380 330.17% 81,320 540.26%
Total borrowings 272,801 1,4292.05% 279,263 2,4273.40% 784,889 3,4171.70%
  Total interest-bearing liabilities 5,375,709 5,4840.40% 5,330,318 6,9980.52% 6,084,115 12,2420.80%
Non-interest-bearing liabilities:         
Demand checking accounts 1,892,763   1,827,501   1,587,618  
Other non-interest-bearing liabilities 206,237   224,445   265,440  
Total liabilities 7,474,709   7,382,264   7,937,173  
Stockholders’ equity 987,522   978,371   937,294  
Total liabilities and equity$8,462,231  $8,360,635  $8,874,467  
Net interest income (tax-equivalent basis) /Interest-rate spread (4)  71,5203.42%  70,7483.39%  68,2803.03%
Less adjustment of tax-exempt income  59   51   55 
Net interest income $71,461  $70,697  $68,225 
Net interest margin (5)  3.52%  3.53%  3.23%
          
(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, 2021December 31, 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)$729,147$12,1781.67%$750,689$13,8231.84%
Marketable and restricted equity securities (2) 34,074 1,1723.44% 61,873 2,8624.63%
Short-term investments 217,784 2520.12% 186,617 4130.22%
Total investments 981,005 13,6021.39% 999,179 17,0981.71%
Loans and Leases:      
Commercial real estate loans (3) 3,854,357 139,4513.57% 3,781,201 148,4383.86%
Commercial loans (3) 1,020,627 47,6474.61% 1,140,699 41,3913.57%
Equipment financing (3) 1,081,287 71,9066.65% 1,074,561 75,5637.03%
Residential mortgage loans (3) 788,614 27,9333.54% 810,855 31,3923.87%
Other consumer loans (3) 369,326 11,2093.03% 402,672 13,2553.28%
Total loans and leases 7,114,211 298,1464.19% 7,209,988 310,0394.30%
  Total interest-earning assets 8,095,216 311,7483.85% 8,209,167 327,1373.99%
Non-interest-earning assets 422,984   474,402  
Total assets$8,518,200  $8,683,569  
       
Liabilities and Stockholders' Equity:      
Interest-bearing liabilities:      
Deposits:      
NOW accounts$502,189 4930.10%$408,374 4840.12%
Savings accounts 793,141 9500.12% 670,217 1,5030.22%
Money market accounts 2,288,740 6,2140.27% 1,817,085 9,5190.52%
Certificates of deposit 1,210,451 11,7580.97% 1,577,104 30,3551.92%
Brokered deposit accounts 338,734 1,2980.38% 512,803 6,5651.28%
  Total interest-bearing deposits 5,133,255 20,7130.40% 4,985,583 48,4260.97%
Borrowings:      
Advances from the FHLBB 232,175 3,3021.40% 859,389 12,8421.47%
Subordinated debentures and notes 83,821 4,9675.93% 83,667 5,0386.02%
Other borrowed funds 88,818 1740.20% 90,587 3480.38%
Total borrowings 404,814 8,4432.06% 1,033,643 18,2281.73%
Total interest-bearing liabilities 5,538,069 29,1560.53% 6,019,226 66,6541.11%
Non-interest-bearing liabilities:      
Demand checking accounts 1,787,959   1,451,556  
Other non-interest-bearing liabilities 224,634   276,712  
Total liabilities 7,550,662   7,747,494  
Stockholders’ equity 967,538   936,075  
Total liabilities and equity$8,518,200  $8,683,569  
Net interest income (tax-equivalent basis) /Interest-rate spread (4)  282,5923.32%  260,4832.88%
Less adjustment of tax-exempt income  219   320 
Net interest income $282,373  $260,163 
Net interest margin (5)  3.49%  3.17%
       
(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,
     2021  2020  2021   2020 
Reconciliation Table - Non-GAAP Financial Information (Dollars in Thousands Except Share Data)
        
Net income  $28,545 $26,663 $115,440  $47,635 
Less:        
Security (losses) gains (after-tax) (24) -  (28)  1,511 
Operating earnings   $28,569 $26,663 $115,468  $46,124 
         
Operating earnings per common share:       
Basic   $0.37 $0.34 $1.48  $0.58 
Diluted    0.37  0.34  1.48   0.58 
         
Weighted average common shares outstanding during the period:      
Basic    77,610,608  78,533,351  77,974,851   78,951,892 
Diluted    77,864,097  78,680,873  78,243,416   79,103,289 
         
         
Return on average assets *   1.35% 1.20% 1.36%  0.55%
Less:        
Security gains (after-tax) *   -% -% -%  0.02%
Operating return on average assets *   1.35% 1.20% 1.36%  0.53%
         
         
Return on average tangible assets *   1.38% 1.22% 1.38%  0.56%
Less:        
Security gains (after-tax) *   -% -% -%  0.02%
Operating return on average tangible assets *   1.38% 1.22% 1.38%  0.54%
         
         
Return on average stockholders' equity *   11.56% 11.38% 11.93%  5.09%
Less:        
Security (losses) gains (after-tax) *   (0.01)% -% -%  0.16%
Operating return on average stockholders' equity *  11.57% 11.38% 11.93%  4.93%
         
         
Return on average tangible stockholders' equity *  13.84% 13.79% 14.35%  6.17%
Less:        
Security (losses) gains (after-tax) *   (0.01)% -% -%  0.20%
Operating return on average tangible stockholders' equity *  13.85% 13.79% 14.35%  5.97%
         
         
* 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 EndedAt and for the Twelve Months Ended
 December 31,
2021
September 30,
2021
June 30,
2021
March 31,
2021
December 31,
2020
December 31,
2021
 December 31,
2020
 (Dollars in Thousands)
         
Net income, as reported$28,545 $28,839 $31,602 $26,454 $26,663 $115,440  $47,635 
         
Average total assets$8,462,231 $8,360,635 $8,540,228 $8,714,158 $8,874,467 $8,518,200  $8,683,569 
Less: Average goodwill and average identified intangible assets, net 162,804  163,011  163,224  163,457  163,758  163,122   164,227 
Average tangible assets$8,299,427 $8,197,624 $8,377,004 $8,550,701 $8,710,709 $8,355,078  $8,519,342 
         
Return on average tangible assets (annualized) 1.38 % 1.41 % 1.51 % 1.24 % 1.22 % 1.38 %  0.56 %
         
Average total stockholders’ equity$987,522 $978,371 $957,207 $946,482 $937,294 $967,538  $936,075 
Less: Average goodwill and average identified intangible assets, net 162,804  163,011  163,224  163,457  163,758  163,122   164,227 
Average tangible stockholders’ equity$824,718 $815,360 $793,983 $783,025 $773,536 $804,416  $771,848 
         
Return on average tangible stockholders’ equity (annualized) 13.84 % 14.15 % 15.92 % 13.51 % 13.79 % 14.35 %  6.17 %
         
Total stockholders’ equity$995,342 $978,452 $972,252 $945,399 $941,778 $995,342  $941,778 
Less:        
Goodwill 160,427  160,427  160,427  160,427  160,427  160,427   160,427 
Identified intangible assets, net 2,276  2,484  2,692  2,920  3,152  2,276   3,152 
Tangible stockholders' equity$832,639 $815,541 $809,133 $782,052 $778,199 $832,639  $778,199 
         
Total assets$8,602,622 $8,312,649 $8,461,964 $8,559,810 $8,942,424 $8,602,622  $8,942,424 
Less:        
Goodwill 160,427  160,427  160,427  160,427  160,427  160,427   160,427 
Identified intangible assets, net 2,276  2,484  2,692  2,920  3,152  2,276   3,152 
Tangible assets$8,439,919 $8,149,738 $8,298,845 $8,396,463 $8,778,845 $8,439,919  $8,778,845 
         
Tangible stockholders’ equity to tangible assets 9.87 % 10.01 % 9.75 % 9.31 % 8.86 % 9.87 %  8.86 %
         
Tangible stockholders' equity$832,639 $815,541 $809,133 $782,052 $778,199 $832,639  $778,199 
         
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 7,037,464  7,034,754  6,536,478  6,534,602  6,525,783  7,037,464   6,525,783 
Unallocated ESOP shares 24,660  31,278  37,890  44,502  51,114  24,660   51,114 
Unvested restricted shares 500,098  502,808  448,105  449,981  458,800  500,098   458,800 
Number of common shares outstanding 77,614,950  77,608,332  78,154,699  78,148,087  78,141,475  77,614,950   78,141,475 
         
Tangible book value per common share$ 10.73 $ 10.51 $ 10.35 $ 10.01 $ 9.96 $ 10.73  $ 9.96 
         
Allowance for loan and lease losses$99,084 $102,515 $106,474 $109,837 $114,379 $99,084  $114,379 
         
Total loans and leases$7,154,457 $6,931,694 $7,020,275 $7,267,552 $7,269,553 $7,154,457  $7,269,553 
Less:        
Total PPP loans 67,711  160,586  348,411  604,790  489,216  67,711   489,216 
Total loans and leases excluding PPP loans$7,086,746 $6,771,108 $6,671,864 $6,662,762 $6,780,337 $7,086,746  $6,780,337 
         
Allowance for loan and lease losses as a percentage of total loans and leases less PPP loans 1.40 % 1.51 % 1.60 % 1.65 % 1.69 % 1.40 %  1.69 %
         

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Attachments

BRKL 2021Q4 Earnings Presentation.pdf