Brookline Bancorp Announces First Quarter Results

Net Income of $24.7 million, EPS of $0.32

Increases Quarterly Dividend 4%

BOSTON, MA, April 27, 2022 (GLOBE NEWSWIRE) — Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced net income of $24.7 million, or $0.32 per basic and diluted share, for the first quarter of 2022, compared to net income of $28.5 million, or $0.37 per basic and diluted share, for the fourth quarter of 2021, and net income of $26.5 million, or $0.34 per basic and diluted share, for the first quarter of 2021.

Paul Perrault, Chairman and Chief Executive Officer of the Company commented on the first quarter earnings, “I am pleased to report solid earnings for the first quarter of $24.7 million or $0.32 per share.” Perrault continued, “Our bankers continued to generate strong loan and deposit growth during the first quarter. Asset quality continues to be strong as the economy in the markets we serve continues to improve.”

BALANCE SHEET

Total assets at March 31, 2022 increased $31.1 million to $8.63 billion from $8.60 billion at December 31, 2021, and increased $73.9 million from $8.56 billion at March 31, 2021. At March 31, 2022, total loans and leases were $7.2 billion, representing an increase of $68.7 million from December 31, 2021, and a decrease of $44.4 million from March 31, 2021.

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 March 31, 2022, $14.0 million in PPP loans remain outstanding, net of deferred fees and costs of $0.4 million. Excluding PPP loan activity, the core loan portfolio grew $122.4 million in the first quarter compared to growth of $315.6 million in the fourth quarter.

Total investment securities at March 31, 2022 increased $9.7 million to $730.6 million from $720.9 million at December 31, 2021, and increased $0.1 million from $730.4 million at March 31, 2021. Total cash and cash equivalents at March 31, 2022 decreased $34.5 million to $293.3 million from $327.7 million at December 31, 2021, and increased $162.3 million from $130.9 million at March 31, 2021. As of March 31, 2022, total investment securities and total cash and cash equivalents represented 11.9 percent of total assets as compared to 12.2 percent and 10.1 percent as of December 31, 2021 and March 31, 2021, respectively.

Total deposits at March 31, 2022 increased $44.5 million to $7.09 billion from $7.05 billion at December 31, 2021, and increased $227.6 million from $6.87 billion at March 31, 2021.

Total borrowed funds at March 31, 2022 increased $35.6 million to $392.9 million from $357.3 million at December 31, 2021, and decreased $153.1 million from $546.0 million at March 31, 2021.

The ratio of stockholders’ equity to total assets was 11.37 percent at March 31, 2022, as compared to 11.57 percent at December 31, 2021, and 11.04 percent at March 31, 2021. The ratio of tangible stockholders’ equity to tangible assets (non-GAAP) was 9.67 percent at March 31, 2022, as compared to 9.87 percent at December 31, 2021, and 9.31 percent at March 31, 2021. Tangible book value per share (non-GAAP) decreased $0.17 from $10.73 at December 31, 2021 to $10.56 at March 31, 2022, compared to $10.01 at March 31, 2021.

NET INTEREST INCOME

Net interest income decreased $1.7 million to $69.8 million for the first quarter of 2022 from $71.5 million at the quarter ended December 31, 2021. The net interest margin decreased 3 basis points to 3.49 percent for the three months ended March 31, 2022 from 3.52 percent for the three months ended December 31, 2021.

NON-INTEREST INCOME

Total non-interest income for the quarter ended March 31, 2022 decreased $5.2 million to $5.5 million from $10.7 million for the quarter ended December 31, 2021. The decrease was primarily driven by a decrease of $3.3 million in loan level derivative income, net, a decrease of $1.6 million in gain on sales of loans and leases, a decrease of $0.5 million in other non-interest income, and a decrease of $0.1 million in deposit fees, partially offset by an increase of $0.3 million in loan fees.

PROVISION FOR CREDIT LOSSES

The Company recorded a negative provision for credit losses of $0.2 million for the quarter ended March 31, 2022, compared to a provision for credit losses of $0.8 million for the quarter ended December 31, 2021. Total net charge-offs for the first quarter of 2022 were $1.9 million compared to $2.1 million in the fourth quarter of 2021. The decrease was primarily driven by a decrease in net charge-offs of equipment financing and commercial loans of $0.1 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 11 basis points for the first quarter of 2022 from 12 basis points for the fourth quarter of 2021.

The allowance for loan and lease losses represented 1.32 percent of total loans and leases at March 31, 2022, compared to 1.38 percent at December 31, 2021, and 1.51 percent at March 31, 2021. Excluding PPP loans, the allowance for loan and lease losses represented 1.32 percent of total loans and leases at March 31, 2022 compared to 1.40 percent at December 31, 2021, and 1.65 percent at March 31, 2021.

ASSET QUALITY

The ratio of nonperforming loans and leases to total loans and leases was 0.35 percent at March 31, 2022, a decrease from 0.45 percent at December 31, 2021. Total nonaccrual loans and leases decreased $7.0 million to $25.5 million at March 31, 2022 from $32.5 million at December 31, 2021. The ratio of nonperforming assets to total assets was 0.31 percent at March 31, 2022, a decrease from 0.39 percent at December 31, 2021. Total nonperforming assets decreased $6.7 million to $26.5 million at March 31, 2022 from $33.2 million at December 31, 2021.

From March 1, 2020 through January 1, 2022, 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, 2022, approximately 98 percent of loans granted an initial loan payment deferral have returned to payment status and 69 credits totaling $15.0 million, or 0.2 percent of total loans outstanding, are operating under modified terms.

NON-INTEREST EXPENSE

Non-interest expense for the quarter ended March 31, 2022 decreased $0.4 million to $42.5 million from $42.9 million for the quarter ended December 31, 2021. The decrease was primarily driven by a decrease of $1.7 million in compensation and employee benefits expense and a decrease of $0.4 million in other non-interest expense, partially offset by an increase of $0.7 million in occupancy expense, an increase of $0.5 million in equipment and data processing expense, an increase of $0.4 million in advertising and marketing expense, and an increase of $0.1 million in FDIC insurance expense.

PROVISION FOR INCOME TAXES

The effective tax rate was 25.2 percent for the three months ended March 31, 2022 compared to 25.9 percent for the three months ended December 31, 2021 and 24.9 percent for the three months ended March 31, 2021.

RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

The annualized return on average assets decreased to 1.16 percent during the first quarter 2022 from 1.35 percent for the fourth quarter of 2021.

The annualized return on average stockholders’ equity decreased to 9.91 percent during the first quarter of 2022 from 11.56 percent for the fourth quarter of 2021. The annualized return on average tangible stockholders’ equity decreased to 11.84 percent for the first quarter of 2022 from 13.84 percent for the fourth quarter of 2021.

DIVIDEND DECLARED

The Company’s Board of Directors approved a dividend of $0.130 per share for the quarter ended March 31, 2022, an increase of half a cent from the prior period. The dividend will be paid on May 27, 2022 to stockholders of record on May 13, 2022, representing an increase of 4.0 percent from the prior quarter.

CONFERENCE CALL

The Company will conduct a conference call/webcast at 1:30 PM Eastern Time on Thursday, April 28, 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/mediaframe/webcast.html?webcastid=tiHQ5cik. To listen to the call without access to the slides, interested parties may dial 844-200-6205 (United States) or 929-526-1599 (internationally) and ask for the Brookline Bancorp, Inc. conference call (Access Code 477488). 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 866-813-9403 (United States) or 1-929-458-6194 (internationally) and entering the passcode: 051536.

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 regarding the Company’s business, credit quality, financial condition, liquidity and results of operations. Forward-looking statements 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; 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 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  
  March 31,
2022
December 31,
2021
September 30,
2021
June 30,
2021
March 31,
2021
 
  (Dollars In Thousands Except per Share Data)  
Earnings Data:            
Net interest income $ 69,848   $ 71,461   $ 70,697   $ 71,106   $ 69,109    
(Credit) provision for credit losses   (164 )   751     (3,110 )   (3,331 )   (2,147 )  
Non-interest income   5,529     10,699     5,586     5,910     4,794    
Non-interest expense   42,487     42,909     40,922     37,966     40,811    
Income before provision for income taxes   33,050     38,500     38,471     42,381     35,239    
Net income   24,705     28,545     28,839     31,602     26,454    
             
Performance Ratios:            
Net interest margin (1)   3.49 %   3.52 %   3.53 %   3.52 %   3.39 %  
Interest-rate spread (1)   3.31 %   3.42 %   3.39 %   3.34 %   3.15 %  
Return on average assets (annualized)   1.16 %   1.35 %   1.38 %   1.48 %   1.21 %  
Return on average tangible assets (annualized) (non-GAAP)   1.18 %   1.38 %   1.41 %   1.51 %   1.24 %  
Return on average stockholders’ equity (annualized)   9.91 %   11.56 %   11.79 %   13.21 %   11.18 %  
Return on average tangible stockholders’ equity (annualized) (non-GAAP)   11.84 %   13.84 %   14.15 %   15.92 %   13.51 %  
Efficiency ratio (2)   56.37 %   52.23 %   53.64 %   49.30 %   55.22 %  
             
Per Common Share Data:            
Net income — Basic $ 0.32   $ 0.37   $ 0.37   $ 0.40   $ 0.34    
Net income — Diluted   0.32     0.37     0.37     0.40     0.34    
Cash dividends declared   0.130     0.125     0.125     0.120     0.120    
Book value per share (end of period)   12.65     12.82     12.61     12.44     12.10    
Tangible book value per share (end of period) (non-GAAP)   10.56     10.73     10.51     10.35     10.01    
Stock price (end of period)   15.82     16.19     15.26     14.95     15.00    
 
Balance Sheet:            
Total assets $ 8,633,736   $ 8,602,622   $ 8,312,649   $ 8,461,964   $ 8,559,810    
Total loans and leases   7,223,130     7,154,457     6,931,694     7,020,275     7,267,552    
Total deposits   7,094,378     7,049,906     6,873,010     6,894,701     6,866,786    
Total stockholders’ equity   981,935     995,342     978,452     972,252     945,399    
             
Asset Quality:            
Nonperforming assets $ 26,506   $ 33,177   $ 36,461   $ 34,588   $ 37,403    
Nonperforming assets as a percentage of total assets   0.31 %   0.39 %   0.44 %   0.41 %   0.44 %  
Allowance for loan and lease losses $ 95,463   $ 99,084   $ 102,515   $ 106,474   $ 109,837    
Allowance for loan and lease losses as a percentage of total loans and leases   1.32 %   1.38 %   1.48 %   1.52 %   1.51 %  
Net loan and lease charge-offs $ 1,947   $ 2,124   $ 1,255   $ 595   $ 1,760    
Net loan and lease charge-offs as a percentage of average loans and leases (annualized)   0.11 %   0.12 %   0.07 %   0.03 %   0.10 %  
             
Capital Ratios:            
Stockholders’ equity to total assets   11.37 %   11.57 %   11.77 %   11.49 %   11.04 %  
Tangible stockholders’ equity to tangible assets (non-GAAP)   9.67 %   9.87 %   10.01 %   9.75 %   9.31 %  
             
(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, 2022 December 31,
2021
September 30,
2021
June 30,
2021
March 31, 2021
ASSETS (In Thousands Except Share Data)
Cash and due from banks $ 89,032   $ 66,265   $ 28,865   $ 36,079   $ 41,284  
Short-term investments   204,239     261,472     210,279     284,370     89,643  
Total cash and cash equivalents   293,271     327,737     239,144     320,449     130,927  
Investment securities available-for-sale   730,562     720,866     732,020     694,151     729,901  
Equity securities held-for-trading                   518  
Total investment securities   730,562     720,866     732,020     694,151     730,419  
Allowance for investment security losses   (4 )                
Net investment securities   730,558     720,866     732,020     694,151     730,419  
Loans and leases:          
Commercial real estate loans   4,235,325     4,103,040     3,909,011     3,815,581     3,790,341  
Commercial loans and leases   1,800,383     1,887,136     1,869,686     2,038,851     2,324,202  
Consumer loans   1,187,422     1,164,281     1,152,997     1,165,843     1,153,009  
Total loans and leases   7,223,130     7,154,457     6,931,694     7,020,275     7,267,552  
Allowance for loan and lease losses   (95,463 )   (99,084 )   (102,515 )   (106,474 )   (109,837 )
Net loans and leases   7,127,667     7,055,373     6,829,179     6,913,801     7,157,715  
Restricted equity securities   29,066     28,981     28,098     31,627     40,400  
Premises and equipment, net of accumulated depreciation   69,365     70,359     70,811     71,240     72,524  
Right-of-use asset operating leases   19,571     20,508     21,879     22,682     23,180  
Deferred tax asset   46,886     38,987     39,643     41,324     42,857  
Goodwill   160,427     160,427     160,427     160,427     160,427  
Identified intangible assets, net of accumulated amortization   2,142     2,276     2,484     2,692     2,920  
Other real estate owned and repossessed assets   990     718     601     372     6,383  
Other assets   153,793     176,390     188,363     203,199     192,058  
Total assets $ 8,633,736   $ 8,602,622   $ 8,312,649   $ 8,461,964   $ 8,559,810  
LIABILITIES AND STOCKHOLDERS’ EQUITY          
Deposits:          
Demand checking accounts $ 1,903,331   $ 1,888,462   $ 1,816,116   $ 1,926,713   $ 1,724,170  
NOW accounts   627,904     604,097     513,032     495,598     481,988  
Savings accounts   967,183     915,804     823,095     782,482     724,504  
Money market accounts   2,432,377     2,358,306     2,393,362     2,250,651     2,192,468  
Certificate of deposit accounts   1,048,036     1,117,695     1,141,861     1,178,131     1,273,105  
Brokered deposit accounts   115,547     165,542     185,544     261,126     470,551  
Total deposits   7,094,378     7,049,906     6,873,010     6,894,701     6,866,786  
Borrowed funds:          
Advances from the FHLBB   201,236     147,907     113,977     204,154     378,646  
Subordinated debentures and notes   83,934     83,897     83,859     83,821     83,783  
Other borrowed funds   107,727     125,517     69,703     75,039     83,574  
Total borrowed funds   392,897     357,321     267,539     363,014     546,003  
Operating lease liabilities   19,571     20,508     21,879     22,682     23,180  
Mortgagors’ escrow accounts   5,780     6,296     6,455     6,231     6,483  
Reserve for unfunded credits   16,305     14,794     12,736     13,142     13,705  
Accrued expenses and other liabilities   122,870     158,455     152,578     189,942     158,254  
Total liabilities   7,651,801     7,607,280     7,334,197     7,489,712     7,614,411  
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   737,658     736,826     735,990     738,557     737,882  
Retained earnings, partially restricted   357,576     342,639     323,862     304,466     282,301  
Accumulated other comprehensive income   (29,322 )   (110 )   2,615     6,089     2,082  
Treasury stock, at cost;          
7,037,464, 7,037,464, 7,034,754, 6,536,478, and 6,534,602 shares, respectively   (84,718 )   (84,718 )   (84,684 )   (77,493 )   (77,463 )
Unallocated common stock held by the Employee Stock Ownership Plan;          
18,051, 24,660, 31,278, 37,890, and 44,502 shares, respectively   (111 )   (147 )   (183 )   (219 )   (255 )
Total stockholders’ equity   981,935     995,342     978,452     972,252     945,399  
Total liabilities and stockholders’ equity $ 8,633,736   $ 8,602,622   $ 8,312,649   $ 8,461,964   $ 8,559,810  

 

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
  Three Months Ended
  March 31,
2022
December 31,
2021
September 30, 2021 June 30,
2021
March 31,
2021
  (In Thousands Except Share Data)
Interest and dividend income:          
Loans and leases $ 71,721   $ 73,560   $ 74,332   $ 75,026   $ 75,009  
Debt securities   2,996     2,972     2,967     3,121     3,118  
Marketable and restricted equity securities   328     325     313     233     301  
Short-term investments   66     88     83     42     39  
Total interest and dividend income   75,111     76,945     77,695     78,422     78,467  
Interest expense:          
Deposits   3,771     4,055     4,571     5,380     6,707  
Borrowed funds   1,492     1,429     2,427     1,936     2,651  
Total interest expense   5,263     5,484     6,998     7,316     9,358  
Net interest income   69,848     71,461     70,697     71,106     69,109  
(Credit) provision for credit losses   (164 )   751     (3,110 )   (3,331 )   (2,147 )
Provision for investment losses   4                  
Net interest income after provision for credit losses   70,008     70,710     73,807     74,437     71,256  
Non-interest income:          
Deposit fees   2,500     2,653     2,629     3,015     2,281  
Loan fees   747     448     487     607     599  
Loan level derivative income, net   686     3,981     218     7     474  
Gain (loss) on investment securities, net       (32 )       1     (7 )
Gain on sales of loans and leases held-for-sale   344     1,933     557     538     709  
Other   1,252     1,716     1,695     1,742     738  
Total non-interest income   5,529     10,699     5,586     5,910     4,794  
Non-interest expense:          
Compensation and employee benefits   26,884     28,598     27,206     25,161     25,821  
Occupancy   4,284     3,558     3,567     3,832     4,004  
Equipment and data processing   5,078     4,576     4,556     4,697     4,493  
Professional services   1,226     1,151     1,072     1,245     1,226  
FDIC insurance   728     617     662     657     1,044  
Advertising and marketing   1,272     880     1,077     1,110     1,100  
Amortization of identified intangible assets   134     208     208     228     232  
Other   2,881     3,321     2,574     1,036     2,891  
Total non-interest expense   42,487     42,909     40,922     37,966     40,811  
Income before provision for income taxes   33,050     38,500     38,471     42,381     35,239  
Provision for income taxes   8,345     9,955     9,632     10,779     8,785  
Net income $ 24,705   $ 28,545   $ 28,839   $ 31,602   $ 26,454  
Earnings per common share:          
Basic $ 0.32   $ 0.37   $ 0.37   $ 0.40   $ 0.34  
Diluted $ 0.32   $ 0.37   $ 0.37   $ 0.40   $ 0.34  
Weighted average common shares outstanding during the period:        
Basic   77,617,227     77,610,608     78,000,261     78,150,364     78,143,752  
Diluted   77,926,822     77,864,097     78,240,633     78,470,451     78,404,063  
Dividends paid per common share $ 0.125   $ 0.125   $ 0.120   $ 0.120   $ 0.115  
           
 

 

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Asset Quality Analysis (Unaudited)
  At and for the Three Months Ended
  March 31,
2022
December 31,
2021
September 30, 2021 June 30,
2021
March 31,
2021
  (Dollars in Thousands)
NONPERFORMING ASSETS:          
Loans and leases accounted for on a nonaccrual basis:          
Commercial real estate mortgage $ 8,313   $ 10,848   $ 10,963   $ 11,657   $ 3,611  
Multi-family mortgage                    
Construction                   3,853  
Total commercial real estate loans   8,313     10,848     10,963     11,657     7,464  
           
Commercial   1,366     2,318     2,539     3,207     3,161  
Equipment financing   11,685     15,014     17,655     14,872     15,772  
Condominium association   77     84     91     97     106  
Total commercial loans and leases   13,128     17,416     20,285     18,176     19,039  
           
Residential mortgage   3,394     3,909     4,150     3,638     3,722  
Home equity   680     285     461     744     793  
Other consumer   1     1     1     1     2  
Total consumer loans   4,075     4,195     4,612     4,383     4,517  
           
Total nonaccrual loans and leases   25,516     32,459     35,860     34,216     31,020  
           
Other real estate owned                   5,328  
Other repossessed assets   990     718     601     372     1,055  
Total nonperforming assets $ 26,506   $ 33,177   $ 36,461   $ 34,588   $ 37,403  
           
Loans and leases past due greater than 90 days and still accruing $ 4   $ 1   $ 838   $ 3,154   $ 1,179  
           
Troubled debt restructurings on accrual   10,858     12,580     13,526     14,387     16,770  
Troubled debt restructurings on nonaccrual   5,189     6,709     6,655     6,410     6,293  
Total troubled debt restructurings $ 16,047   $ 19,289   $ 20,181   $ 20,797   $ 23,063  
           
Nonperforming loans and leases as a percentage of total loans and leases   0.35 %   0.45 %   0.52 %   0.49 %   0.43 %
Nonperforming assets as a percentage of total assets   0.31 %   0.39 %   0.44 %   0.41 %   0.44 %
           
PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:      
Allowance for loan and lease losses at beginning of period $ 99,084   $ 102,515   $ 106,474   $ 109,837   $ 114,379  
Charge-offs   (2,344 )   (2,562 )   (1,600 )   (1,221 )   (2,143 )
Recoveries   397     438     345     626     383  
Net charge-offs   (1,947 )   (2,124 )   (1,255 )   (595 )   (1,760 )
(Credit) provision for loan and lease losses
excluding unfunded commitments *
  (1,674 )   (1,307 )   (2,704 )   (2,768 )   (2,782 )
Allowance for loan and lease losses at end of period $ 95,463   $ 99,084   $ 102,515   $ 106,474   $ 109,837  
           
Allowance for loan and lease losses as a percentage of total loans and leases   1.32 %   1.38 %   1.48 %   1.52 %   1.51 %
           
NET CHARGE-OFFS:          
Commercial real estate loans $ 31   $   $ (1 ) $ 17   $  
Commercial loans and leases   1,948     2,143     1,276     695     1,809  
Consumer loans   (32 )   (19 )   (20 )   (117 )   (49 )
Total net charge-offs $ 1,947   $ 2,124   $ 1,255   $ 595   $ 1,760  
           
Net loan and lease charge-offs as a percentage of average loans and leases (annualized)   0.11 %   0.12 %   0.07 %   0.03 %   0.10 %
           
*Provision for loan and lease losses does not include provision (credit) of $1.5 million, $2.1 million, $(0.4) million, $(0.6) million and $0.6 million, for credit losses on unfunded commitments during the three months ended March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021 and March 31, 2021, respectively.          
 
 

 

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Average Yields / Costs (Unaudited)
  Three Months Ended
  March 31, 2022 December 31, 2021 March 31, 2021
  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) $ 720,263 $ 2,996 1.66 % $ 727,734 $ 2,972 1.63 % $ 754,699 $ 3,118 1.65 %
Marketable and restricted equity securities (2)   27,909   328 4.70 %   27,019   325 4.81 %   45,673   301 2.64 %
Short-term investments   192,475   66 0.14 %   224,573   88 0.16 %   191,751   39 0.08 %
Total investments   940,647   3,390 1.44 %   979,326   3,385 1.38 %   992,123   3,458 1.39 %
Loans and Leases:                  
Commercial real estate loans (3)   4,152,414   36,027 3.47 %   3,996,647   35,762 3.50 %   3,785,897   34,245 3.62 %
Commercial loans (3)   755,809   7,998 4.23 %   820,932   10,146 4.84 %   1,249,824   12,746 4.08 %
Equipment financing (3)   1,105,194   18,012 6.52 %   1,092,457   18,175 6.65 %   1,079,039   18,043 6.69 %
Residential mortgage loans (3)   804,939   6,992 3.47 %   796,326   6,785 3.41 %   780,785   7,232 3.71 %
Other consumer loans (3)   366,534   2,750 3.04 %   368,087   2,751 2.96 %   375,590   2,795 3.02 %
Total loans and leases   7,184,890   71,779 4.00 %   7,074,449   73,619 4.16 %   7,271,135   75,061 4.13 %
Total interest-earning assets   8,125,537   75,169 3.70 %   8,053,775   77,004 3.82 %   8,263,258   78,519 3.80 %
Non-interest-earning assets   405,506       408,456       450,900    
Total assets $ 8,531,043     $ 8,462,231     $ 8,714,158    
                   
Liabilities and Stockholders’ Equity:                  
Interest-bearing liabilities:                  
Deposits:                  
NOW accounts $ 589,891   103 0.07 % $ 528,335   101 0.08 % $ 477,893   130 0.11 %
Savings accounts   933,173   198 0.09 %   897,821   219 0.10 %   712,728   235 0.13 %
Money market accounts   2,416,577   1,570 0.26 %   2,430,496   1,615 0.26 %   2,084,503   1,486 0.29 %
Certificates of deposit   1,091,729   1,848 0.69 %   1,129,645   2,072 0.73 %   1,328,112   4,154 1.27 %
Brokered deposit accounts   132,751   52 0.16 %   116,611   48 0.16 %   610,824   702 0.47 %
Total interest-bearing deposits   5,164,121   3,771 0.30 %   5,102,908   4,055 0.32 %   5,214,060   6,707 0.52 %
Borrowings                  
Advances from the FHLBB   103,878   187 0.72 %   76,786   117 0.59 %   488,537   1,370 1.12 %
Subordinated debentures and notes   83,915   1,244 5.93 %   83,878   1,241 5.92 %   83,764   1,242 5.93 %
Other borrowed funds   130,080   61 0.19 %   112,137   71 0.25 %   92,391   39 0.17 %
Total borrowings   317,873   1,492 1.88 %   272,801   1,429 2.05 %   664,692   2,651 1.60 %
Total interest-bearing liabilities   5,481,994   5,263 0.39 %   5,375,709   5,484 0.40 %   5,878,752   9,358 0.65 %
Non-interest-bearing liabilities:                  
Demand checking accounts   1,880,039       1,892,763       1,643,373    
Other non-interest-bearing liabilities   171,717       206,237       245,551    
Total liabilities   7,533,750       7,474,709       7,767,676    
Stockholders’ equity   997,293       987,522       946,482    
Total liabilities and equity $ 8,531,043     $ 8,462,231     $ 8,714,158    
Net interest income (tax-equivalent basis) /Interest-rate spread (4)     69,906 3.31 %     71,520 3.42 %     69,161 3.15 %
Less adjustment of tax-exempt income     58       59       52  
Net interest income   $ 69,848     $ 71,461     $ 69,109  
Net interest margin (5)     3.49 %     3.52 %     3.39 %
                   
(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 
 March 31,
          2022     2021  
Reconciliation Table – Non-GAAP Financial Information     (Dollars in Thousands Except Share Data)
         
Net income     $ 24,705   $ 26,454  
Less:          
Security gains (losses) (after-tax)           (5 )
Operating earnings       $ 24,705   $ 26,459  
           
Operating earnings per common share:          
Basic       $ 0.32   $ 0.34  
Diluted         0.32     0.34  
           
Weighted average common shares outstanding during the period:        
Basic         77,617,227     78,143,752  
Diluted         77,926,822     78,404,063  
           
           
Return on average assets *       1.16 %   1.21 %
Less:          
Security gains (losses) (after-tax) *       %   %
Operating return on average assets *       1.16 %   1.21 %
           
           
Return on average tangible assets *       1.18 %   1.24 %
Less:          
Security gains (losses) (after-tax) *       %   %
Operating return on average tangible assets *       1.18 %   1.24 %
           
           
Return on average stockholders’ equity *       9.91 %   11.18 %
Less:          
Security gains (losses) (after-tax) *       %   %
Operating return on average stockholders’ equity *       9.91 %   11.18 %
           
           
Return on average tangible stockholders’ equity *       11.84 %   13.51 %
Less:          
Security gains (losses) (after-tax) *       %   %
Operating return on average tangible stockholders’ equity *       11.84 %   13.51 %
           
* Ratios at and for the three months ended are annualized.        
 
 
  At and for the Three Months Ended
  March 31,
2022
December 31,
2021
September 30,
2021
June 30,
2021
March 31,
2021
  (Dollars in Thousands)
           
Net income, as reported $ 24,705   $ 28,545   $ 28,839   $ 31,602   $ 26,454  
           
Average total assets $ 8,531,043   $ 8,462,231   $ 8,360,635   $ 8,540,228   $ 8,714,158  
Less: Average goodwill and average identified intangible assets, net   162,632     162,804     163,011     163,224     163,457  
Average tangible assets $ 8,368,411   $ 8,299,427   $ 8,197,624   $ 8,377,004   $ 8,550,701  
           
Return on average tangible assets (annualized)   1.18 %   1.38 %   1.41 %   1.51 %   1.24 %
           
Average total stockholders’ equity $ 997,293   $ 987,522   $ 978,371   $ 957,207   $ 946,482  
Less: Average goodwill and average identified intangible assets, net   162,632     162,804     163,011     163,224     163,457  
Average tangible stockholders’ equity $ 834,661   $ 824,718   $ 815,360   $ 793,983   $ 783,025  
           
Return on average tangible stockholders’ equity (annualized)   11.84 %   13.84 %   14.15 %   15.92 %   13.51 %
           
Total stockholders’ equity $ 981,935   $ 995,342   $ 978,452   $ 972,252   $ 945,399  
Less:          
Goodwill   160,427     160,427     160,427     160,427     160,427  
Identified intangible assets, net   2,142     2,276     2,484     2,692     2,920  
Tangible stockholders’ equity $ 819,366   $ 832,639   $ 815,541   $ 809,133   $ 782,052  
           
Total assets $ 8,633,736   $ 8,602,622   $ 8,312,649   $ 8,461,964   $ 8,559,810  
Less:          
Goodwill   160,427     160,427     160,427     160,427     160,427  
Identified intangible assets, net   2,142     2,276     2,484     2,692     2,920  
Tangible assets $ 8,471,167   $ 8,439,919   $ 8,149,738   $ 8,298,845   $ 8,396,463  
           
Tangible stockholders’ equity to tangible assets   9.67 %   9.87 %   10.01 %   9.75 %   9.31 %
           
Tangible stockholders’ equity $ 819,366   $ 832,639   $ 815,541   $ 809,133   $ 782,052  
           
Number of common shares issued   85,177,172     85,177,172     85,177,172     85,177,172     85,177,172  
Less:          
Treasury shares   7,037,464     7,037,464     7,034,754     6,536,478     6,534,602  
Unallocated ESOP shares   18,051     24,660     31,278     37,890     44,502  
Unvested restricted shares   500,098     500,098     502,808     448,105     449,981  
Number of common shares outstanding   77,621,559     77,614,950     77,608,332     78,154,699     78,148,087  
           
Tangible book value per common share $                     10.56   $                        10.73   $                         10.51   $                    10.35   $                     10.01  
           
Allowance for loan and lease losses $ 95,463   $ 99,084   $ 102,515   $ 106,474   $ 109,837  
           
Total loans and leases $ 7,223,130   $ 7,154,457   $ 6,931,694   $ 7,020,275   $ 7,267,552  
Less:          
Total PPP loans   14,013     67,711     160,586     348,411     604,790  
Total loans and leases excluding PPP loans $ 7,209,117   $ 7,086,746   $ 6,771,108   $ 6,671,864   $ 6,662,762  
           
Allowance for loan and lease losses as a percentage of total loans and leases less PPP loans   1.32 %   1.40 %   1.51 %   1.60 %   1.65 %
 

A PDF accompanying this announcement is available at http://ml.globenewswire.com/Resource/Download/4fad90dc-2014-4f33-8dff-96a2325e992c

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