Brookline Bancorp : Announces Fourth Quarter Results - Form 8-K

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 [phone] [e-mail]

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Selected Financial Highlights (Unaudited)
	At and for the Three Months Ended	At and for the Twelve Months Ended
	December 31, 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 investments	261,472	210,279	284,370	89,643	398,848
Total cash and cash equivalents	327,737	239,144	320,449	130,927	434,917
Investment securities available-for-sale	720,866	732,020	694,151	729,901	745,822
Equity securities held-for-trading	-	-	-	518	526
Total investment securities	720,866	732,020	694,151	730,419	746,348
Loans and leases:
Commercial real estate loans	4,103,040	3,909,011	3,815,581	3,790,341	3,823,826
Commercial loans and leases	1,887,136	1,869,686	2,038,851	2,324,202	2,274,899
Consumer loans	1,164,281	1,152,997	1,165,843	1,153,009	1,170,828
Total loans and leases	7,154,457	6,931,694	7,020,275	7,267,552	7,269,553
Allowance for loan and lease losses	(99,084)	(102,515)	(106,474)	(109,837)	(114,379)
Net loans and leases	7,055,373	6,829,179	6,913,801	7,157,715	7,155,174
Restricted equity securities	28,981	28,098	31,627	40,400	49,786
Premises and equipment, net of accumulated depreciation	70,359	70,811	71,240	72,524	71,568
Right-of-use asset operating leases	20,508	21,879	22,682	23,180	24,143
Deferred tax asset	38,987	39,643	41,324	42,857	40,129
Goodwill	160,427	160,427	160,427	160,427	160,427
Identified intangible assets, net of accumulated amortization	2,276	2,484	2,692	2,920	3,152
Other real estate owned and repossessed assets	718	601	372	6,383	6,515
Other assets	176,390	188,363	203,199	192,058	250,265
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 accounts	604,097	513,032	495,598	481,988	513,948
Savings accounts	915,804	823,095	782,482	724,504	701,659
Money market accounts	2,358,306	2,393,362	2,250,651	2,192,468	2,018,977
Certificate of deposit accounts	1,117,695	1,141,861	1,178,131	1,273,105	1,389,998
Brokered deposit accounts	165,542	185,544	261,126	470,551	693,909
Total deposits	7,049,906	6,873,010	6,894,701	6,866,786	6,910,696
Borrowed funds:
Advances from the FHLBB	147,907	113,977	204,154	378,646	648,849
Subordinated debentures and notes	83,897	83,859	83,821	83,783	83,746
Other borrowed funds	125,517	69,703	75,039	83,574	87,652
Total borrowed funds	357,321	267,539	363,014	546,003	820,247
Operating lease liabilities	20,508	21,879	22,682	23,180	24,143
Mortgagors' escrow accounts	6,296	6,455	6,231	6,483	5,901
Reserve for unfunded credits	14,794	12,736	13,142	13,705	13,071
Accrued expenses and other liabilities	158,455	152,578	189,942	158,254	226,588
Total liabilities	7,607,280	7,334,197	7,489,712	7,614,411	8,000,646
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, respectively	852	852	852	852	852
Additional paid-in capital	736,826	735,990	738,557	737,882	737,178
Retained earnings, partially restricted	342,639	323,862	304,466	282,301	264,892
Accumulated other comprehensive income	(110)	2,615	6,089	2,082	16,490
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' equity	995,342	978,452	972,252	945,399	941,778
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, 2021	September 30, 2021	December 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	$	2,972	1.63	%	$	713,593	$	2,967	1.66	%	$	770,414	$	3,334	1.73	%
Marketable and restricted equity securities (2)		27,019		325	4.81	%		28,877		313	4.33	%		51,469		491	3.81	%
Short-term investments		224,573		88	0.16	%		220,110		83	0.15	%		223,665		59	0.10	%
Total investments		979,326		3,385	1.38	%		962,580		3,363	1.40	%		1,045,548		3,884	1.49	%
Loans and Leases:
Commercial real estate loans (3)		3,996,647		35,762	3.50	%		3,851,677		35,124	3.57	%		3,833,172		35,526	3.63	%
Commercial loans (3)		820,932		10,146	4.84	%		901,862		11,715	5.09	%		1,260,883		11,936	3.71	%
Equipment financing (3)		1,092,457		18,175	6.65	%		1,079,059		17,725	6.57	%		1,086,855		18,626	6.86	%
Residential mortgage loans (3)		796,326		6,785	3.41	%		788,874		6,989	3.54	%		803,884		7,530	3.75	%
Other consumer loans (3)		368,087		2,751	2.96	%		364,914		2,830	3.07	%		385,818		3,020	3.10	%
Total loans and leases		7,074,449		73,619	4.16	%		6,986,386		74,383	4.26	%		7,370,612		76,638	4.16	%
Total interest-earning assets		8,053,775		77,004	3.82	%		7,948,966		77,746	3.91	%		8,416,160		80,522	3.83	%
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		101	0.08	%	$	502,093		116	0.09	%	$	451,014		126	0.11	%
Savings accounts		897,821		219	0.10	%		785,657		248	0.12	%		701,378		245	0.14	%
Money market accounts		2,430,496		1,615	0.26	%		2,387,080		1,616	0.27	%		1,947,686		1,546	0.32	%
Certificates of deposit		1,129,645		2,072	0.73	%		1,160,113		2,430	0.83	%		1,452,867		5,718	1.57	%
Brokered deposit accounts		116,611		48	0.16	%		216,112		161	0.30	%		746,281		1,190	0.63	%
Total interest-bearing deposits		5,102,908		4,055	0.32	%		5,051,055		4,571	0.36	%		5,299,226		8,825	0.66	%
Borrowings:
Advances from the FHLBB		76,786		117	0.59	%		119,043		1,152	3.79	%		619,844		2,118	1.34	%
Subordinated debentures and notes		83,878		1,241	5.92	%		83,840		1,242	5.92	%		83,725		1,245	5.95	%
Other borrowed funds		112,137		71	0.25	%		76,380		33	0.17	%		81,320		54	0.26	%
Total borrowings		272,801		1,429	2.05	%		279,263		2,427	3.40	%		784,889		3,417	1.70	%
Total interest-bearing liabilities		5,375,709		5,484	0.40	%		5,330,318		6,998	0.52	%		6,084,115		12,242	0.80	%
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)			71,520	3.42	%			70,748	3.39	%			68,280	3.03	%
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, 2021	December 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	$	12,178	1.67	%	$	750,689	$	13,823	1.84	%
Marketable and restricted equity securities (2)		34,074		1,172	3.44	%		61,873		2,862	4.63	%
Short-term investments		217,784		252	0.12	%		186,617		413	0.22	%
Total investments		981,005		13,602	1.39	%		999,179		17,098	1.71	%
Loans and Leases:
Commercial real estate loans (3)		3,854,357		139,451	3.57	%		3,781,201		148,438	3.86	%
Commercial loans (3)		1,020,627		47,647	4.61	%		1,140,699		41,391	3.57	%
Equipment financing (3)		1,081,287		71,906	6.65	%		1,074,561		75,563	7.03	%
Residential mortgage loans (3)		788,614		27,933	3.54	%		810,855		31,392	3.87	%
Other consumer loans (3)		369,326		11,209	3.03	%		402,672		13,255	3.28	%
Total loans and leases		7,114,211		298,146	4.19	%		7,209,988		310,039	4.30	%
Total interest-earning assets		8,095,216		311,748	3.85	%		8,209,167		327,137	3.99	%
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		493	0.10	%	$	408,374		484	0.12	%
Savings accounts		793,141		950	0.12	%		670,217		1,503	0.22	%
Money market accounts		2,288,740		6,214	0.27	%		1,817,085		9,519	0.52	%
Certificates of deposit		1,210,451		11,758	0.97	%		1,577,104		30,355	1.92	%
Brokered deposit accounts		338,734		1,298	0.38	%		512,803		6,565	1.28	%
Total interest-bearing deposits		5,133,255		20,713	0.40	%		4,985,583		48,426	0.97	%
Borrowings:
Advances from the FHLBB		232,175		3,302	1.40	%		859,389		12,842	1.47	%
Subordinated debentures and notes		83,821		4,967	5.93	%		83,667		5,038	6.02	%
Other borrowed funds		88,818		174	0.20	%		90,587		348	0.38	%
Total borrowings		404,814		8,443	2.06	%		1,033,643		18,228	1.73	%
Total interest-bearing liabilities		5,538,069		29,156	0.53	%		6,019,226		66,654	1.11	%
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)			282,592	3.32	%			260,483	2.88	%
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 Ended	At 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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