BRKL Brookline Bancorp Inc

Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced net income of $22.2 million, or $0.28 per basic and diluted share, for the fourth quarter of 2019, compared to $22.6 million, or $0.28 per basic and diluted share, for the third quarter of 2019, and $21.1 million, or $0.26 per basic and diluted share, for the fourth quarter of 2018.

For the year ended December 31, 2019, the Company reported net income of $87.7 million, or $1.10 per basic and diluted share. This compared to $83.1 million, or $1.04 per basic and diluted share, for the year ended December 31, 2018.

President and Chief Executive Officer Paul Perrault commented on the Company’s performance in 2019. “We had another successful year of solid growth and returns for our stockholders in 2019. For the second straight year Brookline Bancorp has achieved record earnings per share and net income. I would like to thank all of our employees for their hard work and dedication, demonstrating the values of Brookline Bancorp, as we position ourselves for continued success and growth in the new decade.”

On December 4, 2019, the Board of Directors (the “Board”) of the Company approved a stock repurchase program authorizing management to repurchase up to $10.0 million of the Company’s common stock over a period of twelve months commencing on January 1, 2020 and ending on December 31, 2020.

BALANCE SHEET

Total assets at December 31, 2019 decreased $21.6 million to $7.86 billion from $7.88 billion at September 30, 2019, and increased $464.0 million from $7.39 billion at December 31, 2018. At December 31, 2019, total loans and leases were $6.74 billion, representing an increase of $91.0 million from September 30, 2019, and an increase of $434.3 million from December 31, 2018.

Investment securities at December 31, 2019 increased $22.3 million to $589.4 million, as compared to $567.1 million at September 30, 2019, and decreased $32.4 million from $621.8 million at December 31, 2018. As of December 31, 2019, securities and cash and cash equivalents represented 8.5 percent of total assets as compared to 9.5 percent and 9.6 percent as of September 30, 2019 and December 31, 2018, respectively.

Total deposits at December 31, 2019 increased $100.7 million to $5.83 billion from $5.73 billion at September 30, 2019 and increased $376.0 million from $5.45 billion at December 31, 2018.

Total borrowed funds at December 31, 2019 decreased $83.7 million to $902.7 million from $986.4 million at September 30, 2019 and decreased $17.8 million from $920.5 million at December 31, 2018.

The ratio of stockholders’ equity to total assets was 12.04 percent at December 31, 2019, as compared to 11.83 percent at September 30, 2019, and 12.18 percent at December 31, 2018. The ratio of tangible stockholders’ equity to tangible assets was 10.15 percent at December 31, 2019, as compared to 9.94 percent at September 30, 2019, and 10.15 percent at December 31, 2018. Tangible book value per share increased $0.17 from $9.63 at September 30, 2019 to $9.80 at December 31, 2019, compared to $9.21 at December 31, 2018.

NET INTEREST INCOME

Net interest income increased $0.7 million to $63.9 million during the fourth quarter of 2019 from $63.2 million for the quarter ended September 30, 2019. The net interest margin decreased 2 basis points to 3.43 percent for the three months ended December 31, 2019 from 3.45 percent for the three months ended September 30, 2019.

NON-INTEREST INCOME

Non-interest income for the quarter ended December 31, 2019 decreased $0.1 million to $7.8 million from $7.9 million for the quarter ended September 30, 2019. The decrease was primarily driven by decreases of $0.2 million in revenue on sales of loans and leases and $0.3 million in other non-interest income; partially offset by increases of $0.2 million in loan level derivative income and $0.2 million in gain on securities.

PROVISION FOR CREDIT LOSSES

The Company recorded a provision for credit losses of $3.6 million for the quarter ended December 31, 2019, compared to $0.9 million for the quarter ended September 30, 2019.

Total net charge-offs for the fourth quarter of 2019 were $1.6 million compared to $0.4 million in the third quarter of 2019. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis increased to 10 basis points for the fourth quarter of 2019 from 2 basis points for the third quarter of 2019.

The allowance for loan and lease losses represented 0.91 percent of total loans and leases at December 31, 2019, compared to 0.89 percent at September 30, 2019, and 0.93 percent at December 31, 2018. The allowance for loan and lease losses related to originated loans and leases represented 0.91 percent of originated loans and leases at December 31, 2019, compared to 0.90 percent at September 30, 2019, and 0.96 percent at December 31, 2018.

NON-INTEREST EXPENSE

Non-interest expense for the quarter ended December 31, 2019 decreased $1.4 million to $38.8 million from $40.2 million for the quarter ended September 30, 2019. The decrease was primarily driven by decreases of $0.9 million in compensation and employee benefits, $0.1 million in equipment and data processing and $1.1 million in merger and acquisition expense, partially offset by an increase of $0.7 million in other non-interest expense.

PROVISION FOR INCOME TAXES

The effective tax rate was 24.2 percent and 24.4 percent for the three and twelve months ended December 31, 2019, respectively.

RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

The annualized return on average assets decreased to 1.13 percent during the fourth quarter of 2019 compared to 1.17 percent for the third quarter of 2019; and was 1.15 percent for the year ended December 31, 2019, compared to 1.15 percent for the year ended December 31, 2018.

The annualized return on average tangible stockholders' equity decreased to 11.42 percent during the fourth quarter of 2019 compared to 11.85 percent for the third quarter of 2019; and was 11.67 percent for the year ended December 31, 2019 compared to 11.70 percent for the year ended December 31, 2018.

ASSET QUALITY

The ratio of total nonperforming loans and leases to total loans and leases was 0.29 percent at December 31, 2019 as compared to 0.33 percent at September 30, 2019. Nonperforming loans and leases decreased $2.1 million to $19.5 million at December 31, 2019 from $21.6 million at September 30, 2019. The ratio of nonperforming assets to total assets was 0.28 percent at December 31, 2019 as compared to 0.30 percent at September 30, 2019. Nonperforming assets decreased $1.7 million to $22.1 million at December 31, 2019 from $23.8 million at September 30, 2019.

DIVIDEND DECLARED

The Company’s Board approved a dividend of $0.115 per share for the quarter ended December 31, 2019. The dividend will be paid on February 28, 2020 to stockholders of record on February 14, 2020.

CONFERENCE CALL

The Company will conduct a conference call/webcast at 1:30 PM Eastern Daylight Time on Thursday, January 30, 2020 to discuss the results for the quarter, business highlights and outlook. The call can be accessed by dialing 877-504-4120 (United States) or 412-902-6650 (internationally). A recorded playback of the call will be available for one week following the call at 877-344-7529 (United States) or 412-317-0088 (internationally). The passcode for the playback is 10137889. The call will be available live and in a recorded version on the Company’s website under “Investor Relations” at www.brooklinebancorp.com.

ABOUT BROOKLINE BANCORP, INC.

Brookline Bancorp, Inc., a bank holding company with $7.9 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, Bank Rhode Island, and First Ipswich Bank (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, www.bankri.com, and www.firstipswich.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. 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 others, the risks outlined in the Company’s Annual Report on Form 10-K, as updated by its Quarterly Reports on Form 10-Q and other filings submitted to the Securities and Exchange Commission ("SEC"). The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.

BASIS OF PRESENTATION

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

NON-GAAP FINANCIAL MEASURES

The Company uses certain non-GAAP financial measures, such as operating earnings, operating return on average assets, operating return on average tangible assets, operating return on average stockholders' equity, operating return on average tangible stockholders' equity, the allowance for loan and lease losses related to originated loans and leases as a percentage of originated loans and leases, tangible book value per common share, tangible stockholders’ equity to tangible assets, return on average tangible assets and return on average tangible stockholders' equity. 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.

Contact:	Carl M. Carlson
	Brookline Bancorp, Inc.
	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																				At and for the Twelve Months Ended
	December 31, 2019				September 30, 2019				June 30, 2019				March 31, 2019				December 31, 2018				December 31, 2019				December 31, 2018
	(Dollars In Thousands Except per Share Data)
Earnings Data:
Net interest income	$	63,931			$	63,236			$	63,134			$	62,999			$	63,159			$	253,300			$	247,699
Provision for credit losses		3,602				871				3,757				1,353				123				9,583				4,951
Non-interest income		7,756				7,929				7,478				6,630				6,461				29,793				25,224
Non-interest expense		38,815				40,191				39,604				38,871				40,282				157,481				155,232
Income before provision for income taxes		29,270				30,103				27,251				29,405				29,215				116,029				112,740
Net income attributable to Brookline Bancorp, Inc.		22,183				22,596				20,471				22,467				21,138				87,717				83,062
Performance Ratios:
Net interest margin (1)		3.43	%			3.45	%			3.55	%			3.64	%			3.58	%			3.51	%			3.61	%
Interest-rate spread (1)		3.05	%			3.06	%			3.13	%			3.18	%			3.25	%			3.10	%			3.32	%
Return on average assets (annualized)		1.13	%			1.17	%			1.08	%			1.21	%			1.15	%			1.15	%			1.15	%
Return on average tangible assets (annualized) (non-GAAP)		1.15	%			1.19	%			1.11	%			1.24	%			1.17	%			1.17	%			1.18	%
Return on average stockholders' equity (annualized)		9.42	%			9.74	%			8.98	%			10.14	%			9.40	%			9.56	%			9.51	%
Return on average tangible stockholders' equity (annualized) (non-GAAP)		11.42	%			11.85	%			10.98	%			12.48	%			11.54	%			11.67	%			11.70	%
Efficiency ratio (2)		54.15	%			56.48	%			56.09	%			55.83	%			57.86	%			55.63	%			56.88	%
Per Common Share Data:
Net income — Basic	$	0.28			$	0.28			$	0.26			$	0.28			$	0.26			$	1.10			$	1.04
Net income — Diluted		0.28				0.28				0.26				0.28				0.26				1.10				1.04
Cash dividends declared		0.115				0.115				0.110				0.110				0.105				0.450				0.395
Book value per share (end of period)		11.87				11.70				11.53				11.30				11.30				11.87				11.30
Tangible book value per share (end of period) (non-GAAP)		9.80				9.63				9.45				9.22				9.21				9.80				9.21
Stock price (end of period)		16.46				14.73				15.38				14.40				13.82				16.46				13.82
Balance Sheet:
Total assets	$	7,856,853			$	7,878,436			$	7,636,980			$	7,519,130			$	7,392,805			$	7,856,853			$	7,392,805
Total loans and leases		6,737,816				6,646,821				6,505,329				6,388,197				6,303,516				6,737,816				6,303,516
Total deposits		5,830,072				5,729,339				5,622,493				5,620,633				5,454,044				5,830,072				5,454,044
Brookline Bancorp, Inc. stockholders’ equity		945,606				932,311				918,468				900,572				900,140				945,606				900,140
Asset Quality:
Nonperforming assets	$	22,092			$	23,760			$	23,267			$	26,721			$	28,116			$	22,092			$	28,116
Nonperforming assets as a percentage of total assets		0.28	%			0.30	%			0.30	%			0.36	%			0.38	%			0.28	%			0.38	%
Allowance for loan and lease losses	$	61,082			$	59,135			$	58,635			$	58,041			$	58,692			$	61,082			$	58,692
Allowance for loan and lease losses as a percentage of total loans and leases		0.91	%			0.89	%			0.90	%			0.91	%			0.93	%			0.91	%			0.93	%
Net loan and lease charge-offs	$	1,622			$	366			$	3,082			$	2,101			$	1,252			$	7,171			$	4,651
Net loan and lease charge-offs as a percentage of average loans and leases (annualized)		0.10	%			0.02	%			0.19	%			0.13	%			0.08	%			0.11	%			0.08	%
Capital Ratios:
Stockholders’ equity to total assets		12.04	%			11.83	%			12.03	%			11.98	%			12.18	%			12.04	%			12.18	%
Tangible stockholders’ equity to tangible assets (non-GAAP)		10.15	%			9.94	%			10.08	%			9.99	%			10.15	%			10.15	%			10.15	%
(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, 2019				September 30, 2019				June 30, 2019				March 31, 2019				December 31, 2018
ASSETS	(In Thousands Except Share Data)
Cash and due from banks	$	33,589			$	93,841			$	46,532			$	51,276			$	47,542
Short-term investments		44,201				84,689				46,264				61,063				42,042
Total cash and cash equivalents		77,790				178,530				92,796				112,339				89,584
Investment securities available-for-sale		498,995				467,339				482,497				489,020				502,793
Investment securities held-to-maturity		86,780				95,163				103,572				113,694				114,776
Investment securities trading		3,581				4,581				4,698				4,341				4,207
Total investment securities		589,356				567,083				590,767				607,055				621,776
Loans and leases held-for-sale		—				—				1,575				869				3,247
Loans and leases:
Commercial real estate loans:
Commercial real estate mortgage		2,491,011				2,441,091				2,421,104				2,355,507				2,330,725
Multi-family mortgage		932,163				919,234				877,330				855,703				847,711
Construction		246,048				229,126				195,120				199,258				173,300
Total commercial real estate loans		3,669,222				3,589,451				3,493,554				3,410,468				3,351,736
Commercial loans and leases:
Commercial		729,502				766,883				763,145				741,577				736,418
Equipment financing		1,052,408				1,029,280				1,015,205				995,863				982,089
Condominium association		56,838				54,225				47,986				49,142				50,451
Total commercial loans and leases		1,838,748				1,850,388				1,826,336				1,786,582				1,768,958
Consumer loans:
Residential mortgage		814,245				792,733				769,983				775,578				782,968
Home equity		376,819				375,257				374,746				376,126				376,484
Other consumer		38,782				38,992				40,710				39,443				23,370
Total consumer loans		1,229,846				1,206,982				1,185,439				1,191,147				1,182,822
Total loans and leases		6,737,816				6,646,821				6,505,329				6,388,197				6,303,516
Allowance for loan and lease losses		(61,082	)			(59,135	)			(58,635	)			(58,041	)			(58,692	)
Net loans and leases		6,676,734				6,587,686				6,446,694				6,330,156				6,244,824
Restricted equity securities		53,818				57,896				55,270				54,192				61,751
Premises and equipment, net of accumulated depreciation		74,350				75,229				75,373				75,520				76,382
Right-of-use asset operating leases		24,876				26,216				25,928				26,205				—
Deferred tax asset ("DTA")		25,017				25,204				25,629				27,084				21,495
Goodwill		160,427				160,427				160,427				160,427				160,427
Identified intangible assets, net of accumulated amortization		4,423				4,843				5,264				5,684				6,086
Other real estate owned and repossessed assets		2,631				2,132				1,966				3,912				4,019
Other assets		167,431				193,190				155,291				115,687				103,214
Total assets	$	7,856,853			$	7,878,436			$	7,636,980			$	7,519,130			$	7,392,805
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest-bearing deposits:
Demand checking accounts	$	1,141,578			$	1,106,684			$	1,042,854			$	1,011,031			$	1,033,551
Interest-bearing deposits:
NOW accounts		371,380				340,321				340,082				369,896				336,317
Savings accounts		613,467				604,481				585,322				625,770				619,961
Money market accounts		1,682,005				1,666,231				1,669,782				1,706,708				1,675,050
Certificate of deposit accounts		2,021,642				2,011,622				1,984,453				1,907,228				1,789,165
Total interest-bearing deposits		4,688,494				4,622,655				4,579,639				4,609,602				4,420,493
Total deposits		5,830,072				5,729,339				5,622,493				5,620,633				5,454,044
Borrowed funds:
Advances from the FHLBB		758,469				854,481				791,559				730,018				784,375
Subordinated debentures and notes		83,591				83,551				83,512				83,472				83,433
Other borrowed funds		60,689				48,373				55,693				52,515				52,734
Total borrowed funds		902,749				986,405				930,764				866,005				920,542
Operating lease liabilities		24,876				26,216				25,928				26,205				—
Mortgagors’ escrow accounts		7,232				7,072				6,823				7,517				7,426
Accrued expenses and other liabilities		146,318				197,093				132,504				98,198				100,174
Total liabilities		6,911,247				6,946,125				6,718,512				6,618,558				6,482,186
Stockholders' equity:
Brookline Bancorp, Inc. stockholders’ equity
Common stock, $0.01 par value; 200,000,000 shares authorized; 85,177,172 shares issued, 85,177,172 shares issued, 85,177,172 shares issued, 85,177,172 shares issued, and 85,177,172 shares issued, respectively		852				852				852				852				852
Additional paid-in capital		736,601				735,928				737,584				736,872				755,629
Retained earnings, partially restricted		265,376				252,435				238,625				226,929				212,838
Accumulated other comprehensive income (loss)		2,283				2,775				1,141				(4,393	)			(9,460	)
Treasury stock, at cost;
5,003,127 shares, 5,003,127 shares, 5,025,764 shares, 5,020,025 shares, and 5,020,025 shares, respectively		(59,073	)			(59,176	)			(59,199	)			(59,121	)			(59,120	)
Unallocated common stock held by the Employee Stock Ownership Plan;
79,548 shares, 92,337 shares, 98,208 shares,104,079 shares, and 109,950 shares, respectively		(433	)			(503	)			(535	)			(567	)			(599	)
Total Brookline Bancorp, Inc. stockholders’ equity		945,606				932,311				918,468				900,572				900,140
Noncontrolling interest in subsidiary		—				—				—				—				10,479
Total stockholders' equity		945,606				932,311				918,468				900,572				910,619
Total liabilities and stockholders' equity	$	7,856,853			$	7,878,436			$	7,636,980			$	7,519,130			$	7,392,805

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
	Three Months Ended
	December 31, 2019			September 30, 2019				June 30, 2019			March 31, 2019			December 31, 2018
	(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases	$	83,309		$	83,566			$	82,798		$	80,672		$	78,791
Debt securities		2,910			2,977				3,158			3,236			3,489
Marketable and restricted equity securities		813			876				877			911			1,008
Short-term investments		418			487				351			267			256
Total interest and dividend income		87,450			87,906				87,184			85,086			83,544
Interest expense:
Deposits		17,655			18,300				17,712			15,948			13,744
Borrowed funds		5,864			6,370				6,338			6,139			6,641
Total interest expense		23,519			24,670				24,050			22,087			20,385
Net interest income		63,931			63,236				63,134			62,999			63,159
Provision for credit losses		3,602			871				3,757			1,353			123
Net interest income after provision for credit losses		60,329			62,365				59,377			61,646			63,036
Non-interest income:
Deposit fees		2,710			2,710				2,680			2,523			2,669
Loan fees		567			719				398			413			390
Loan level derivative income, net		2,494			2,251				1,772			1,745			1,811
Gain (loss) on investment securities, net		133			(116	)			357			134			(692	)
Gain on sales of loans and leases held-for-sale		309			550				561			289			327
Other		1,543			1,815				1,710			1,526			1,956
Total non-interest income		7,756			7,929				7,478			6,630			6,461
Non-interest expense:
Compensation and employee benefits		23,987			24,871				23,953			23,743			24,413
Occupancy		4,102			3,895				3,752			3,947			3,240
Equipment and data processing		4,601			4,749				4,641			4,661			4,626
Professional services		1,120			1,083				1,087			1,076			1,130
FDIC insurance		53			54				745			593			727
Advertising and marketing		828			1,035				1,112			1,069			773
Amortization of identified intangible assets		420			421				420			402			537
Merger and restructuring expense		—			1,125				—			—			526
Other		3,704			2,958				3,894			3,380			4,310
Total non-interest expense		38,815			40,191				39,604			38,871			40,282
Income before provision for income taxes		29,270			30,103				27,251			29,405			29,215
Provision for income taxes		7,087			7,507				6,780			6,895			7,055
Net income before noncontrolling interest in subsidiary		22,183			22,596				20,471			22,510			22,160
Less net income attributable to noncontrolling interest in subsidiary		—			—				—			43			1,022
Net income attributable to Brookline Bancorp, Inc.	$	22,183		$	22,596			$	20,471		$	22,467		$	21,138
Earnings per common share:
Basic	$	0.28		$	0.28			$	0.26		$	0.28		$	0.26
Diluted	$	0.28		$	0.28			$	0.26		$	0.28		$	0.26
Weighted average common shares outstanding during the period:
Basic		79,682,724			79,700,403				79,669,922			79,658,583			80,258,456
Diluted		79,845,447			79,883,510				79,886,292			79,843,578			80,407,525
Dividends paid per common share	$	0.115		$	0.110			$	0.110		$	0.105		$	0.105

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
	Twelve Months Ended December 31,
		2019			2018
	(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases	$	330,345		$	295,269
Debt securities		12,281			13,960
Marketable and restricted equity securities		3,477			3,964
Short-term investments		1,523			700
Total interest and dividend income		347,626			313,893
Interest expense:
Deposits		69,615			41,978
Borrowed funds		24,711			24,216
Total interest expense		94,326			66,194
Net interest income		253,300			247,699
Provision for credit losses		9,583			4,951
Net interest income after provision for credit losses		243,717			242,748
Non-interest income:
Deposit fees		10,623			10,400
Loan fees		2,097			1,427
Loan level derivative income, net		8,262			5,440
Gain on investment securities, net		508			227
Gain on sales of loans and leases held-for-sale		1,709			1,883
Other		6,594			5,847
Total non-interest income		29,793			25,224
Non-interest expense:
Compensation and employee benefits		96,554			91,535
Occupancy		15,696			14,991
Equipment and data processing		18,652			18,213
Professional services		4,366			4,404
FDIC insurance		1,445			2,722
Advertising and marketing		4,044			4,016
Amortization of identified intangible assets		1,663			2,080
Merger and restructuring expense		1,125			3,787
Other		13,936			13,484
Total non-interest expense		157,481			155,232
Income before provision for income taxes		116,029			112,740
Provision for income taxes		28,269			26,189
Net income before noncontrolling interest in subsidiary		87,760			86,551
Less net income attributable to noncontrolling interest in subsidiary		43			3,489
Net income attributable to Brookline Bancorp, Inc.	$	87,717		$	83,062
Earnings per common share:
Basic	$	1.10		$	1.04
Diluted	$	1.10		$	1.04
Weighted average common shares outstanding during the period:
Basic		79,679,781			79,669,660
Diluted		79,856,921			79,909,243
Dividends paid per common share	$	0.440		$	0.395

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Asset Quality Analysis (Unaudited)
	At and for the Three Months Ended
	December 31, 2019				September 30, 2019				June 30, 2019				March 31, 2019				December 31, 2018
	(Dollars in Thousands)
NONPERFORMING ASSETS:
Loans and leases accounted for on a nonaccrual basis:
Commercial real estate mortgage	$	2,845			$	2,910			$	2,273			$	2,889			$	3,928
Multi-family mortgage		84				87				94				101				330
Construction		—				—				—				396				396
Total commercial real estate loans		2,929				2,997				2,367				3,386				4,654
Commercial		4,909				3,139				6,349				5,728				6,621
Equipment financing		9,822				12,817				9,931				10,253				9,500
Condominium association		151				163				170				224				265
Total commercial loans and leases		14,882				16,119				16,450				16,205				16,386
Residential mortgage		753				1,605				1,642				2,188				2,132
Home equity		896				904				835				1,022				908
Other consumer		1				3				7				8				17
Total consumer loans		1,650				2,512				2,484				3,218				3,057
Total nonaccrual loans and leases		19,461				21,628				21,301				22,809				24,097
Other real estate owned		—				201				957				3,054				3,054
Other repossessed assets		2,631				1,931				1,009				858				965
Total nonperforming assets	$	22,092			$	23,760			$	23,267			$	26,721			$	28,116
Loans and leases past due greater than 90 days and still accruing	$	10,109			$	11,885			$	11,612			$	16,800			$	13,482
Troubled debt restructurings on accrual		17,076				22,233				27,761				28,543				12,257
Troubled debt restructurings on nonaccrual		6,104				5,763				8,431				7,597				8,684
Total troubled debt restructurings	$	23,180			$	27,996			$	36,192			$	36,140			$	20,941
Total nonaccrual loans and leases as a percentage of total loans and leases		0.29	%			0.33	%			0.33	%			0.36	%			0.38	%
Nonperforming assets as a percentage of total assets		0.28	%			0.30	%			0.30	%			0.36	%			0.38	%
PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:
Allowance for loan and lease losses at beginning of period	$	59,135			$	58,635			$	58,041			$	58,692			$	59,997
Charge-offs		(1,894	)			(1,190	)			(3,412	)			(2,542	)			(1,604	)
Recoveries		272				824				330				441				352
Net charge-offs		(1,622	)			(366	)			(3,082	)			(2,101	)			(1,252	)
(Credit) provision for loan and lease losses		3,569				866				3,676				1,450				(53	)
Allowance for loan and lease losses at end of period	$	61,082			$	59,135			$	58,635			$	58,041			$	58,692
Allowance for loan and lease losses as a percentage of total loans and leases		0.91	%			0.89	%			0.90	%			0.91	%			0.93	%
Allowance for loan and lease losses related to originated loans and leases as a percentage of originated loans and leases (non-GAAP)		0.91	%			0.90	%			0.92	%			0.93	%			0.96	%
NET CHARGE-OFFS:
Commercial real estate loans	$	—			$	—			$	—			$	—			$	—
Commercial loans and leases		1,589				403				3,107				2,124				883
Consumer loans		33				(37	)			(25	)			(23	)			369
Total net charge-offs	$	1,622			$	366			$	3,082			$	2,101			$	1,252
Net loan and lease charge-offs as a percentage of average loans and leases (annualized)		0.10	%			0.02	%			0.19	%			0.13	%			0.08	%

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Average Yields / Costs (Unaudited)
	Three Months Ended
	December 31, 2019										September 30, 2019										December 31, 2018
	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)	$	567,037			$	2,957		2.09	%		$	573,389			$	3,027		2.11	%		$	637,803			$	3,542		2.22	%
Marketable and restricted equity securities (2)		59,763				823		5.51	%			59,638				885		5.94	%			69,374				1,017		5.87	%
Short-term investments		93,997				418		1.78	%			70,707				487		2.76	%			50,728				256		2.02	%
Total investments		720,797				4,198		2.33	%			703,734				4,399		2.50	%			757,905				4,815		2.54	%
Loans and Leases:
Commercial real estate loans (3)		3,605,169				40,976		4.45	%			3,539,485				41,724		4.61	%			3,310,185				39,014		4.61	%
Commercial loans (3)		826,116				10,066		4.78	%			838,092				10,291		4.81	%			825,582				10,007		4.75	%
Equipment financing (3)		1,037,431				19,271		7.43	%			1,019,179				18,519		7.27	%			959,706				17,145		7.15	%
Residential mortgage loans (3)		804,672				8,402		4.18	%			776,482				8,215		4.23	%			763,775				7,840		4.11	%
Other consumer loans (3)		417,950				4,680		4.43	%			415,082				4,917		4.69	%			404,747				4,883		4.78	%
Total loans and leases		6,691,338				83,395		4.99	%			6,588,320				83,666		5.08	%			6,263,995				78,889		5.04	%
Total interest-earning assets		7,412,135				87,593		4.73	%			7,292,054				88,065		4.83	%			7,021,900				83,704		4.77	%
Allowance for loan and lease losses		(59,202	)									(59,386	)									(59,806	)
Non-interest-earning assets		507,660										513,824										420,837
Total assets	$	7,860,593									$	7,746,492									$	7,382,931
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts	$	344,036				115		0.13	%		$	335,091				129		0.15	%		$	333,592				88		0.10	%
Savings accounts		604,276				746		0.49	%			600,609				820		0.54	%			616,766				526		0.34	%
Money market accounts		1,685,885				4,947		1.16	%			1,683,548				5,413		1.28	%			1,647,346				4,914		1.18	%
Certificates of deposit		2,026,753				11,847		2.32	%			2,000,941				11,938		2.37	%			1,701,254				8,216		1.92	%
Total interest-bearing deposits		4,660,950				17,655		1.50	%			4,620,189				18,300		1.57	%			4,298,958				13,744		1.27	%
Borrowings:
Advances from the FHLBB		753,460				4,407		2.29	%			759,738				4,859		2.50	%			903,342				5,227		2.26	%
Subordinated debentures and notes		83,570				1,293		6.19	%			83,530				1,300		6.22	%			83,410				1,302		6.24	%
Other borrowed funds		64,543				164		1.01	%			79,620				211		1.05	%			50,829				112		0.87	%
Total borrowings		901,573				5,864		2.55	%			922,888				6,370		2.70	%			1,037,581				6,641		2.50	%
Total interest-bearing liabilities		5,562,523				23,519		1.68	%			5,543,077				24,670		1.77	%			5,336,539				20,385		1.52	%
Non-interest-bearing liabilities:
Demand checking accounts		1,142,600										1,096,788										1,028,086
Other non-interest-bearing liabilities		213,579										178,564										109,261
Total liabilities		6,918,702										6,818,429										6,473,886
Brookline Bancorp, Inc. stockholders’ equity		941,891										928,063										899,244
Noncontrolling interest in subsidiary		—										—										9,801
Total liabilities and equity	$	7,860,593									$	7,746,492									$	7,382,931
Net interest income (tax-equivalent basis) /Interest-rate spread (4)						64,074		3.05	%							63,395		3.06	%							63,319		3.25	%
Less adjustment of tax-exempt income						143										159										160
Net interest income					$	63,931									$	63,236									$	63,159
Net interest margin (5)								3.43	%									3.45	%									3.58	%
(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, 2019										December 31, 2018
	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)	$	585,360			$	12,483		2.13	%		$	653,652			$	14,174		2.17	%
Marketable and restricted equity securities (2)		59,751				3,516		5.88	%			67,640				3,973		5.88	%
Short-term investments		71,090				1,523		2.14	%			38,437				700		1.82	%
Total investments		716,201				17,522		2.45	%			759,729				18,847		2.48	%
Loans and Leases:
Commercial real estate loans (3)		3,492,848				164,082		4.63	%			3,235,101				146,147		4.46	%
Commercial loans (3)		817,347				39,839		4.81	%			813,815				37,616		4.56	%
Equipment financing (3)		1,012,698				74,066		7.31	%			919,047				63,968		6.96	%
Residential mortgage loans (3)		783,556				32,926		4.20	%			746,372				29,773		3.99	%
Other consumer loans (3)		414,730				19,835		4.78	%			401,425				18,216		4.53	%
Total loans and leases		6,521,179				330,748		5.07	%			6,115,760				295,720		4.84	%
Total interest-earning assets		7,237,380				348,270		4.81	%			6,875,489				314,567		4.58	%
Allowance for loan and lease losses		(58,871	)									(59,154	)
Non-interest-earning assets		476,125										406,746
Total assets	$	7,654,634									$	7,223,081
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts	$	339,275				436		0.13	%		$	340,194				283		0.08	%
Savings accounts		608,022				2,900		0.48	%			618,674				1,804		0.29	%
Money market accounts		1,682,676				21,206		1.26	%			1,715,057				15,369		0.90	%
Certificates of deposit		1,956,350				45,073		2.30	%			1,497,473				24,522		1.64	%
Total interest-bearing deposits		4,586,323				69,615		1.52	%			4,171,398				41,978		1.01	%
Borrowings:
Advances from the FHLBB		757,598				18,701		2.43	%			946,017				18,650		1.94	%
Subordinated debentures and notes		83,511				5,206		6.23	%			83,350				5,181		6.22	%
Other borrowed funds		79,276				804		1.01	%			46,079				385		0.83	%
Total borrowings		920,385				24,711		2.65	%			1,075,446				24,216		2.22	%
Total interest-bearing liabilities		5,506,708				94,326		1.71	%			5,246,844				66,194		1.26	%
Non-interest-bearing liabilities:
Demand checking accounts		1,070,859										997,179
Other non-interest-bearing liabilities		159,690										96,560
Total liabilities		6,737,257										6,340,583
Brookline Bancorp, Inc. stockholders’ equity		917,286										873,388
Noncontrolling interest in subsidiary		91										9,110
Total liabilities and equity	$	7,654,634									$	7,223,081
Net interest income (tax-equivalent basis) /Interest-rate spread (4)						253,944		3.10	%							248,373		3.32	%
Less adjustment of tax-exempt income						644										674
Net interest income					$	253,300									$	247,699
Net interest margin (5)								3.51	%									3.61	%
(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,
														2019				2018				2019				2018
Reconciliation Table - Non-GAAP Financial Information													(Dollars in Thousands Except Share Data)
Net income attributable to Brookline Bancorp, Inc.													$	22,183			$	21,138			$	87,717			$	83,062
Less:
Security gains (loss) (after-tax)														101				(525	)			384				174
Add:
Merger and restructuring-related expenses (after-tax)														—				399				851				2,908
Operating earnings													$	22,082			$	22,062			$	88,184			$	85,796
Operating earnings per common share:
Basic													$	0.28			$	0.27			$	1.11			$	1.08
Diluted														0.28				0.27				1.10				1.07
Weighted average common shares outstanding during the period:
Basic														79,682,724				80,258,456				79,679,781				79,669,660
Diluted														79,845,447				80,407,525				79,856,921				79,909,243
Return on average assets *														1.13	%			1.15	%			1.15	%			1.15	%
Less:
Security gains (loss) (after-tax) *														0.01	%			(0.03	)%			0.01	%			—	%
Add:
Merger and restructuring-related expenses (after-tax) *														—	%			0.02	%			0.01	%			0.04	%
Operating return on average assets *														1.12	%			1.20	%			1.15	%			1.19	%
Return on average tangible assets *														1.15	%			1.17	%			1.17	%			1.18	%
Less:
Security gains (loss) (after-tax) *														0.01	%			(0.03	)%			0.01	%			—	%
Add:
Merger and restructuring-related expenses (after-tax) *														—	%			0.02	%			0.01	%			0.04	%
Operating return on average tangible assets *														1.14	%			1.22	%			1.17	%			1.22	%
Return on average stockholders' equity *														9.42	%			9.40	%			9.56	%			9.51	%
Less:
Security gains (loss) (after-tax) *														0.04	%			(0.23	)%			0.04	%			0.02	%
Add:
Merger and restructuring-related expenses (after-tax) *														—	%			0.18	%			0.09	%			0.33	%
Operating return on average stockholders' equity *														9.38	%			9.81	%			9.61	%			9.82	%
Return on average tangible stockholders' equity *														11.42	%			11.54	%			11.67	%			11.70	%
Less:
Security gains (loss) (after-tax) *														0.05	%			(0.29	)%			0.05	%			0.02	%
Add:
Merger and restructuring-related expenses (after-tax) *														—	%			0.22	%			0.11	%			0.41	%
Operating return on average tangible stockholders' equity *														11.37	%			12.05	%			11.73	%			12.09	%
* Ratios at and for the three months ended are annualized.
																									(Continued)
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, 2019				September 30, 2019				June 30, 2019				March 31, 2019				December 31, 2018				December 31, 2019				December 31, 2018
	(Dollars in Thousands)
Net income, as reported	$	22,183			$	22,596			$	20,471			$	22,467			$	21,138			$	87,717			$	83,062
Average total assets	$	7,860,593			$	7,746,492			$	7,571,396			$	7,434,038			$	7,382,931			$	7,654,634			$	7,223,081
Less: Average goodwill and average identified intangible assets, net		165,071				165,493				165,914				166,327				166,777				165,697				163,712
Average tangible assets	$	7,695,522			$	7,580,999			$	7,405,482			$	7,267,711			$	7,216,154			$	7,488,937			$	7,059,369
Return on average tangible assets (annualized)		1.15	%			1.19	%			1.11	%			1.24	%			1.17	%			1.17	%			1.18	%
Average total stockholders’ equity	$	941,891			$	928,063			$	911,824			$	886,639			$	899,244			$	917,286			$	873,388
Less: Average goodwill and average identified intangible assets, net		165,071				165,493				165,914				166,327				166,777				165,697				163,712
Average tangible stockholders’ equity	$	776,820			$	762,570			$	745,910			$	720,312			$	732,467			$	751,589			$	709,676
Return on average tangible stockholders’ equity (annualized)		11.42	%			11.85	%			10.98	%			12.48	%			11.54	%			11.67	%			11.70	%
Brookline Bancorp, Inc. stockholders’ equity	$	945,606			$	932,311			$	918,468			$	900,572			$	900,140			$	945,606			$	900,140
Less:
Goodwill		160,427				160,427				160,427				160,427				160,427				160,427				160,427
Identified intangible assets, net		4,423				4,843				5,264				5,684				6,086				4,423				6,086
Tangible stockholders' equity	$	780,756			$	767,041			$	752,777			$	734,461			$	733,627			$	780,756			$	733,627
Total assets	$	7,856,853			$	7,878,436			$	7,636,980			$	7,519,130			$	7,392,805			$	7,856,853			$	7,392,805
Less:
Goodwill		160,427				160,427				160,427				160,427				160,427				160,427				160,427
Identified intangible assets, net		4,423				4,843				5,264				5,684				6,086				4,423				6,086
Tangible assets	$	7,692,003			$	7,713,166			$	7,471,289			$	7,353,019			$	7,226,292			$	7,692,003			$	7,226,292
Tangible stockholders’ equity to tangible assets		10.15	%			9.94	%			10.08	%			9.99	%			10.15	%			10.15	%			10.15	%
Tangible stockholders' equity	$	780,756			$	767,041			$	752,777			$	734,461			$	733,627			$	780,756			$	733,627
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		5,003,127				5,003,127				5,025,764				5,020,025				5,020,025				5,003,127				5,020,025
Unallocated ESOP shares		79,548				92,337				98,208				104,079				109,950				79,548				109,950
Unvested restricted shares		406,450				407,784				377,122				390,636				393,636				406,450				393,636
Number of common shares outstanding		79,688,047				79,673,924				79,676,078				79,662,432				79,653,561				79,688,047				79,653,561
Tangible book value per common share	$	9.80			$	9.63			$	9.45			$	9.22			$	9.21			$	9.80			$	9.21
Allowance for loan and lease losses	$	61,082			$	59,135			$	58,635			$	58,041			$	58,692			$	61,082			$	58,692
Less:
Allowance for acquired loans and leases losses		2,215				1,955				1,857				1,795				1,814				2,215				1,814
Allowance for originated loan and lease losses	$	58,867			$	57,180			$	56,778			$	56,246			$	56,878			$	58,867			$	56,878
Total loans and leases	$	6,737,816			$	6,646,821			$	6,505,329			$	6,388,197			$	6,303,516			$	6,737,816			$	6,303,516
Less:
Total acquired loans and leases		288,129				310,745				337,420				370,177				394,407				288,129				394,407
Total originated loans and leases	$	6,449,687			$	6,336,076			$	6,167,909			$	6,018,020			$	5,909,109			$	6,449,687			$	5,909,109
Allowance for loan and lease losses related to originated loans and leases as a percentage of originated loans and leases		0.91	%			0.90	%			0.92	%			0.93	%			0.96	%			0.91	%			0.96	%