BRKL Brookline Bancorp Inc

Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced net income of $22.6 million, or $0.28 per basic and diluted share, for the third quarter of 2019, compared to $20.5 million, or $0.26 per basic and diluted share, for the second quarter of 2019, and $22.5 million, or $0.28 per basic and diluted share, for the third quarter of 2018.

Paul Perrault, President and Chief Executive Officer of the Company commented on the third quarter earnings, "We continued to produce strong results in the third quarter, including favorable loan and deposit growth. With this growth we have maintained our commitment to achieving solid returns for our stockholders. Our Board has again voted to increase our dividend, from $0.110 to $0.115. We look forward to a productive fourth quarter.”

FIRST IPSWICH BANK CHARTER CONSOLIDATION

On October 23, 2019, Brookline Bank and First Ipswich Bank, both wholly-owned subsidiaries of the Company, entered into a merger agreement pursuant to which First Ipswich Bank will merge with and into Brookline Bank with Brookline Bank as the surviving institution. We anticipate closing the transaction in the first quarter of 2020. There are no branch closings as part of this charter consolidation.

BALANCE SHEET

Total assets at September 30, 2019 increased $241.5 million to $7.9 billion from $7.6 billion at June 30, 2019, and increased $557.8 million from $7.3 billion at September 30, 2018, primarily driven by growth in the loan portfolio. At September 30, 2019, total loans and leases were $6.6 billion, representing an increase of $141.5 million from June 30, 2019, and an increase of $419.1 million from September 30, 2018, primarily driven by growth in the commercial real estate portfolio.

Investment securities at September 30, 2019 decreased $23.7 million to $567.1 million, as compared to $590.8 million at June 30, 2019, and decreased approximately $87.6 million from $654.6 million at September 30, 2018. As of September 30, 2019, securities, cash and cash equivalents represented 9.5 percent of total assets as compared to 9.0 percent and 9.7 percent as of June 30, 2019 and September 30, 2018, respectively.

Total deposits at September 30, 2019 increased $106.8 million from $5.6 billion at June 30, 2019 to $5.7 billion and increased $495.7 million from $5.2 billion at September 30, 2018 driven primarily by growth in demand deposits.

Total borrowed funds at September 30, 2019 increased $55.6 million to $986.4 million from $930.8 million at June 30, 2019 and decreased $96.5 million from $1.1 billion at September 30, 2018.

The ratio of stockholders’ equity to total assets was 11.83 percent at September 30, 2019, as compared to 12.03 percent at June 30, 2019, and 12.16 percent at September 30, 2018. The ratio of tangible stockholders’ equity to tangible assets was 9.94 percent at September 30, 2019, as compared to 10.08 percent at June 30, 2019, and 10.11 percent at September 30, 2018. Tangible book value per share increased $0.18 from $9.45 at June 30, 2019 to $9.63 at September 30, 2019, compared to $9.00 at September 30, 2018.

NET INTEREST INCOME

Net interest income increased $0.1 million to $63.2 million during the third quarter of 2019 from $63.1 million at the quarter ended June 30, 2019. The net interest margin decreased 10 basis points to 3.45 percent for the three months ended September 30, 2019.

NON-INTEREST INCOME

Non-interest income for the quarter ended September 30, 2019 increased $0.4 million to $7.9 million from $7.5 million for the quarter ended June 30, 2019. The increase was primarily driven by increases of $0.3 million in loan fees, $0.5 million in loan level derivative income and $0.1 million in other non-interest income, partially offset by a decrease of $0.5 million in gain on securities.

PROVISION FOR CREDIT LOSSES

The Company recorded a provision for credit losses of $0.9 million for the quarter ended September 30, 2019, compared to $3.8 million for the quarter ended June 30, 2019. The improved, lower provision in the third quarter results from a reduction in classified assets, recoveries and lower charge-offs.

Total net charge-offs for the third quarter of 2019 were $0.4 million compared to $3.1 million in the second quarter of 2019. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis decreased to 2 basis points for the third quarter of 2019 from 19 basis points for the second quarter of 2019.

The allowance for loan and lease losses represented 0.89 percent of total loans and leases at September 30, 2019, compared to 0.90 percent at June 30, 2019, and 0.96 percent at September 30, 2018. The allowance for loan and lease losses related to originated loans and leases represented 0.90 percent of originated loans and leases at September 30, 2019, compared to 0.92 percent at June 30, 2019, and 1.00 percent at September 30, 2018.

NON-INTEREST EXPENSE

Non-interest expense for the quarter ended September 30, 2019 increased $0.6 million to $40.2 million from $39.6 million for the quarter ended June 30, 2019. The increase was primarily driven by increases of $0.9 million in compensation and employee benefits expense, $0.1 million in occupancy, $0.1 million in equipment and data processing, and $1.1 million in merger and restructuring expense related to the First Ipswich Bank Charter consolidation referenced above, partially offset by decreases of $0.7 million in FDIC insurance and $0.9 million in other non-interest expense.

PROVISION FOR INCOME TAXES

The effective tax rate was 24.9 percent and 24.4 percent for the three and nine months ended September 30, 2019, respectively, compared to 20.9 percent and 22.9 for the three and nine months ended September 30, 2018, respectively.

RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

The annualized return on average assets increased to 1.17 percent during the third quarter of 2019 from 1.08 percent for the second quarter of 2019. The annualized return on average tangible assets increased to 1.19 percent for the third quarter of 2019 from 1.11 percent for the second quarter of 2019.

The annualized return on average stockholders' equity increased to 9.74 percent during the third quarter of 2019 from 8.98 percent for the second quarter of 2019. The annualized return on average tangible stockholders’ equity increased to 11.85 percent for the third quarter of 2019 from 10.98 percent for the second quarter of 2019.

ASSET QUALITY

The ratio of nonperforming loans and leases to total loans and leases was 0.33 percent at September 30, 2019, unchanged from 0.33 percent at June 30, 2019. Nonperforming loans and leases increased $0.3 million to $21.6 million at September 30, 2019 from $21.3 million at June 30, 2019. The ratio of nonperforming assets to total assets was 0.30 percent at September 30, 2019, unchanged from 0.30 percent at June 30, 2019. Nonperforming assets increased $0.5 million to $23.8 million at September 30, 2019 from $23.3 million at June 30, 2019.

DIVIDEND DECLARED

The Company’s Board of Directors approved a dividend of $0.115 per share for the quarter ended September 30, 2019, an increase of half a cent from the prior period. The dividend will be paid on November 22, 2019 to stockholders of record on November 8, 2019, representing an increase of 4.5 percent from the prior quarter and a 9.5 percent increase from the prior year.

CONFERENCE CALL

The Company will conduct a conference call/webcast at 1:30 PM Eastern Daylight Time on Thursday, October 24, 2019 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 10134880. 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 (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.

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
	September 30, 2019				June 30, 2019				March 31, 2019				December 31, 2018				September 30, 2018
	(Dollars In Thousands Except per Share Data)
Earnings Data:
Net interest income	$	63,236			$	63,134			$	62,999			$	63,159			$	62,332
Provision for credit losses		871				3,757				1,353				123				2,717
Non-interest income		7,929				7,478				6,630				6,461				7,069
Non-interest expense		40,191				39,604				38,871				40,282				37,310
Income before provision for income taxes		30,103				27,251				29,405				29,215				29,374
Net income attributable to Brookline Bancorp, Inc.		22,596				20,471				22,467				21,138				22,460
Performance Ratios:
Net interest margin (1)		3.45	%			3.55	%			3.64	%			3.58	%			3.57	%
Interest-rate spread (1)		3.06	%			3.13	%			3.18	%			3.25	%			3.27	%
Return on average assets (annualized)		1.17	%			1.08	%			1.21	%			1.15	%			1.23	%
Return on average tangible assets (annualized) (non-GAAP)		1.19	%			1.11	%			1.24	%			1.17	%			1.26	%
Return on average stockholders' equity (annualized)		9.74	%			8.98	%			10.14	%			9.40	%			10.10	%
Return on average tangible stockholders' equity (annualized) (non-GAAP)		11.85	%			10.98	%			12.48	%			11.54	%			12.44	%
Efficiency ratio (2)		56.48	%			56.09	%			55.83	%			57.86	%			53.76	%
Per Common Share Data:
Net income — Basic	$	0.28			$	0.26			$	0.28			$	0.26			$	0.28
Net income — Diluted		0.28				0.26				0.28				0.26				0.28
Cash dividends declared		0.115				0.110				0.110				0.105				0.105
Book value per share (end of period)		11.70				11.53				11.30				11.30				11.08
Tangible book value per share (end of period) (non-GAAP)		9.63				9.45				9.22				9.21				9.00
Stock price (end of period)		14.73				15.38				14.40				13.82				16.70
Balance Sheet:
Total assets	$	7,878,436			$	7,636,980			$	7,519,130			$	7,392,805			$	7,320,596
Total loans and leases		6,646,821				6,505,329				6,388,197				6,303,516				6,227,707
Total deposits		5,729,339				5,622,493				5,620,633				5,454,044				5,233,611
Brookline Bancorp, Inc. stockholders’ equity		932,311				918,468				900,572				900,140				890,368
Asset Quality:
Nonperforming assets	$	23,760			$	23,267			$	26,721			$	28,116			$	29,718
Nonperforming assets as a percentage of total assets		0.30	%			0.30	%			0.36	%			0.38	%			0.41	%
Allowance for loan and lease losses	$	59,135			$	58,635			$	58,041			$	58,692			$	59,997
Allowance for loan and lease losses as a percentage of total loans and leases		0.89	%			0.90	%			0.91	%			0.93	%			0.96	%
Net loan and lease charge-offs	$	366			$	3,082			$	2,101			$	1,252			$	564
Net loan and lease charge-offs as a percentage of average loans and leases (annualized)		0.02	%			0.19	%			0.13	%			0.08	%			0.04	%
Capital Ratios:
Stockholders’ equity to total assets		11.83	%			12.03	%			11.98	%			12.18	%			12.16	%
Tangible stockholders’ equity to tangible assets (non-GAAP)		9.94	%			10.08	%			9.99	%			10.15	%			10.11	%
(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)
	September 30, 2019				June 30, 2019				March 31, 2019				December 31, 2018				September 30, 2018
ASSETS	(In Thousands Except Share Data)
Cash and due from banks	$	93,841			$	46,532			$	51,276			$	47,542			$	30,762
Short-term investments		84,689				46,264				61,063				42,042				23,114
Total cash and cash equivalents		178,530				92,796				112,339				89,584				53,876
Investment securities available-for-sale		467,339				482,497				489,020				502,793				534,788
Investment securities held-to-maturity		95,163				103,572				113,694				114,776				115,684
Equity securities held-for-trading		4,581				4,698				4,341				4,207				4,169
Total investment securities		567,083				590,767				607,055				621,776				654,641
Loans and leases held-for-sale		—				1,575				869				3,247				937
Loans and leases:
Commercial real estate loans:
Commercial real estate mortgage		2,441,091				2,421,104				2,355,507				2,330,725				2,287,979
Multi-family mortgage		919,234				877,330				855,703				847,711				828,849
Construction		229,126				195,120				199,258				173,300				164,217
Total commercial real estate loans		3,589,451				3,493,554				3,410,468				3,351,736				3,281,045
Commercial loans and leases:
Commercial		766,883				763,145				741,577				736,418				771,200
Equipment financing		1,029,280				1,015,205				995,863				982,089				954,579
Condominium association		54,225				47,986				49,142				50,451				52,205
Total commercial loans and leases		1,850,388				1,826,336				1,786,582				1,768,958				1,777,984
Consumer loans:
Residential mortgage		792,733				769,983				775,578				782,968				759,167
Home equity		375,257				374,746				376,126				376,484				380,303
Other consumer		38,992				40,710				39,443				23,370				29,208
Total consumer loans		1,206,982				1,185,439				1,191,147				1,182,822				1,168,678
Total loans and leases`		6,646,821				6,505,329				6,388,197				6,303,516				6,227,707
Allowance for loan and lease losses		(59,135	)			(58,635	)			(58,041	)			(58,692	)			(59,997	)
Net loans and leases		6,587,686				6,446,694				6,330,156				6,244,824				6,167,710
Restricted equity securities		57,896				55,270				54,192				61,751				63,963
Premises and equipment, net of accumulated depreciation		75,229				75,373				75,520				76,382				77,886
Right-of-use asset operating leases		26,216				25,928				26,205				—				—
Deferred tax asset		25,204				25,629				27,084				21,495				22,249
Goodwill		160,427				160,427				160,427				160,427				160,427
Identified intangible assets, net of accumulated amortization		4,843				5,264				5,684				6,086				6,623
Other real estate owned and repossessed assets		2,132				1,966				3,912				4,019				3,934
Other assets		193,190				155,291				115,687				103,214				108,350
Total assets	$	7,878,436			$	7,636,980			$	7,519,130			$	7,392,805			$	7,320,596
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest-bearing deposits:
Demand checking accounts	$	1,106,684			$	1,042,854			$	1,011,031			$	1,033,551			$	1,017,234
Interest-bearing deposits:
NOW accounts		340,321				340,082				369,896				336,317				322,587
Savings accounts		604,481				585,322				625,770				619,961				612,210
Money market accounts		1,666,231				1,669,782				1,706,708				1,675,050				1,623,220
Certificate of deposit accounts		2,011,622				1,984,453				1,907,228				1,789,165				1,658,360
Total interest-bearing deposits		4,622,655				4,579,639				4,609,602				4,420,493				4,216,377
Total deposits		5,729,339				5,622,493				5,620,633				5,454,044				5,233,611
Borrowed funds:
Advances from the FHLBB		854,481				791,559				730,018				784,375				959,446
Subordinated debentures and notes		83,551				83,512				83,472				83,433				83,392
Other borrowed funds		48,373				55,693				52,515				52,734				40,048
Total borrowed funds		986,405				930,764				866,005				920,542				1,082,886
Operating lease liabilities		26,216				25,928				26,205				—				—
Mortgagors’ escrow accounts		7,072				6,823				7,517				7,426				8,227
Accrued expenses and other liabilities		197,093				132,504				98,198				100,174				96,047
Total liabilities		6,946,125				6,718,512				6,618,558				6,482,186				6,420,771
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		735,928				737,584				736,872				755,629				753,941
Retained earnings, partially restricted		252,435				238,625				226,929				212,838				200,151
Accumulated other comprehensive loss		2,775				1,141				(4,393	)			(9,460	)			(15,599	)
Treasury stock, at cost;
5,003,127 shares, 5,025,764 shares, 5,020,025 shares, 5,020,025 shares, and 4,291,317 shares, respectively		(59,176	)			(59,199	)			(59,121	)			(59,120	)			(48,334	)
Unallocated common stock held by the Employee Stock Ownership Plan;
92,337 shares, 98,208 shares, 104,079 shares,109,950 shares, and 118,050 shares, respectively		(503	)			(535	)			(567	)			(599	)			(643	)
Total Brookline Bancorp, Inc. stockholders’ equity		932,311				918,468				900,572				900,140				890,368
Noncontrolling interest in subsidiary		—				—				—				10,479				9,457
Total stockholders' equity		932,311				918,468				900,572				910,619				899,825
Total liabilities and stockholders' equity	$	7,878,436			$	7,636,980			$	7,519,130			$	7,392,805			$	7,320,596

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
	Three Months Ended
	September 30, 2019				June 30, 2019			March 31, 2019			December 31, 2018				September 30, 2018
	(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases	$	83,566			$	82,798		$	80,672		$	78,791			$	75,877
Debt securities		2,977				3,158			3,236			3,489				3,585
Marketable and restricted equity securities		876				877			911			1,008				1,029
Short-term investments		487				351			267			256				145
Total interest and dividend income		87,906				87,184			85,086			83,544				80,636
Interest expense:
Deposits		18,300				17,712			15,948			13,744				11,916
Borrowed funds		6,370				6,338			6,139			6,641				6,388
Total interest expense		24,670				24,050			22,087			20,385				18,304
Net interest income		63,236				63,134			62,999			63,159				62,332
Provision for credit losses		871				3,757			1,353			123				2,717
Net interest income after provision for credit losses		62,365				59,377			61,646			63,036				59,615
Non-interest income:
Deposit fees		2,710				2,680			2,523			2,669				2,648
Loan fees		719				398			413			390				417
Loan level derivative income, net		2,251				1,772			1,745			1,811				2,192
Gain (loss) on investment securities, net		(116	)			357			134			(692	)			(243	)
Gain on sales of loans and leases held-for-sale		550				561			289			327				535
Other		1,815				1,710			1,526			1,956				1,520
Total non-interest income		7,929				7,478			6,630			6,461				7,069
Non-interest expense:
Compensation and employee benefits		24,871				23,953			23,743			24,413				22,338
Occupancy		3,895				3,752			3,947			3,240				3,913
Equipment and data processing		4,749				4,641			4,661			4,626				4,601
Professional services		1,083				1,087			1,076			1,130				1,075
FDIC insurance		54				745			593			727				846
Advertising and marketing		1,035				1,112			1,069			773				1,068
Amortization of identified intangible assets		421				420			402			537				537
Merger and restructuring expense		1,125				—			—			526				22
Other		2,958				3,894			3,380			4,310				2,910
Total non-interest expense		40,191				39,604			38,871			40,282				37,310
Income before provision for income taxes		30,103				27,251			29,405			29,215				29,374
Provision for income taxes		7,507				6,780			6,895			7,055				6,140
Net income before noncontrolling interest in subsidiary		22,596				20,471			22,510			22,160				23,234
Less net income attributable to noncontrolling interest in subsidiary		—				—			43			1,022				774
Net income attributable to Brookline Bancorp, Inc.	$	22,596			$	20,471		$	22,467		$	21,138			$	22,460
Earnings per common share:
Basic	$	0.28			$	0.26		$	0.28		$	0.26			$	0.28
Diluted	$	0.28			$	0.26		$	0.28		$	0.26			$	0.28
Weighted average common shares outstanding during the period:
Basic		79,700,403				79,669,922			79,658,583			80,258,456				80,315,050
Diluted		79,883,510				79,886,292			79,843,578			80,407,525				80,515,467
Dividends paid per common share	$	0.110			$	0.110		$	0.105		$	0.105			$	0.100

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
	Nine Months Ended September 30,
		2019			2018
	(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases	$	247,036		$	216,478
Debt securities		9,371			10,471
Marketable and restricted equity securities		2,664			2,956
Short-term investments		1,105			444
Total interest and dividend income		260,176			230,349
Interest expense:
Deposits		51,960			28,234
Borrowed funds		18,847			17,575
Total interest expense		70,807			45,809
Net interest income		189,369			184,540
Provision for credit losses		5,981			4,828
Net interest income after provision for credit losses		183,388			179,712
Non-interest income:
Deposit Fees		7,913			7,731
Loan Fees		1,530			1,037
Loan level derivative income, net		5,768			3,629
Gain on investment securities, net		375			1,162
Gain on sales of loans and leases held-for-sale		1,400			1,556
Other		5,051			3,648
Total non-interest income		22,037			18,763
Non-interest expense:
Compensation and employee benefits		72,567			67,217
Occupancy		11,594			11,751
Equipment and data processing		14,051			13,587
Professional services		3,246			3,274
FDIC insurance		1,392			1,995
Advertising and marketing		3,216			3,243
Amortization of identified intangible assets		1,243			1,543
Merger and restructuring expense		1,125			3,261
Other		10,232			9,079
Total non-interest expense		118,666			114,950
Income before provision for income taxes		86,759			83,525
Provision for income taxes		21,182			19,134
Net income before noncontrolling interest in subsidiary		65,577			64,391
Less net income attributable to noncontrolling interest in subsidiary		43			2,467
Net income attributable to Brookline Bancorp, Inc.	$	65,534		$	61,924
Earnings per common share:
Basic	$	0.82		$	0.78
Diluted	$	0.82		$	0.78
Weighted average common shares outstanding during the period:
Basic		79,676,456			79,471,238
Diluted		79,867,683			79,740,992
Dividends paid per common share	$	0.325		$	0.290

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Asset Quality Analysis (Unaudited)
	At and for the Three Months Ended
	September 30, 2019				June 30, 2019				March 31, 2019				December 31, 2018				September 30, 2018
	(Dollars in Thousands)
NONPERFORMING ASSETS:
Loans and leases accounted for on a nonaccrual basis:
Commercial real estate mortgage	$	2,910			$	2,273			$	2,889			$	3,928			$	3,369
Multi-family mortgage		87				94				101				330				357
Construction		—				—				396				396				640
Total commercial real estate loans		2,997				2,367				3,386				4,654				4,366
Commercial		3,139				6,349				5,728				6,621				7,862
Equipment financing		12,817				9,931				10,253				9,500				9,659
Condominium association		163				170				224				265				295
Total commercial loans and leases		16,119				16,450				16,205				16,386				17,816
Residential mortgage		1,605				1,642				2,188				2,132				2,538
Home equity		904				835				1,022				908				1,053
Other consumer		3				7				8				17				11
Total consumer loans		2,512				2,484				3,218				3,057				3,602
Total nonaccrual loans and leases		21,628				21,301				22,809				24,097				25,784
Other real estate owned		201				957				3,054				3,054				3,136
Other repossessed assets		1,931				1,009				858				965				798
Total nonperforming assets	$	23,760			$	23,267			$	26,721			$	28,116			$	29,718
Loans and leases past due greater than 90 days and still accruing	$	11,885			$	11,612			$	16,800			$	13,482			$	14,954
Troubled debt restructurings on accrual		22,233				27,761				28,543				12,257				12,657
Troubled debt restructurings on nonaccrual		5,763				8,431				7,597				8,684				8,779
Total troubled debt restructurings	$	27,996			$	36,192			$	36,140			$	20,941			$	21,436
Nonperforming loans and leases as a percentage of total loans and leases		0.33	%			0.33	%			0.36	%			0.38	%			0.41	%
Nonperforming assets as a percentage of total assets		0.30	%			0.30	%			0.36	%			0.38	%			0.41	%
PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:
Allowance for loan and lease losses at beginning of period	$	58,635			$	58,041			$	58,692			$	59,997			$	57,981
Charge-offs		(1,190	)			(3,412	)			(2,542	)			(1,604	)			(1,227	)
Recoveries		824				330				441				352				663
Net charge-offs		(366	)			(3,082	)			(2,101	)			(1,252	)			(564	)
Provision for loan and lease losses		866				3,676				1,450				(53	)			2,580
Allowance for loan and lease losses at end of period	$	59,135			$	58,635			$	58,041			$	58,692			$	59,997
Allowance for loan and lease losses as a percentage of total loans and leases		0.89	%			0.90	%			0.91	%			0.93	%			0.96	%
Allowance for loan and lease losses related to originated loans and leases as a percentage of originated loans and leases (non-GAAP)		0.90	%			0.92	%			0.93	%			0.96	%			1.00	%
NET CHARGE-OFFS:
Commercial real estate loans	$	—			$	—			$	—			$	—			$	—
Commercial loans and leases		403				3,107				2,124				883				579
Consumer loans		(37	)			(25	)			(23	)			369				(15	)
Total net charge-offs	$	366			$	3,082			$	2,101			$	1,252			$	564
Net loan and lease charge-offs as a percentage of average loans and leases (annualized)		0.02	%			0.19	%			0.13	%			0.08	%			0.04	%

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Average Yields / Costs (Unaudited)
	Three Months Ended
	September 30, 2019										June 30, 2019										September 30, 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)	$	573,389			$	3,027		2.11	%		$	593,404			$	3,210		2.16	%		$	663,125			$	3,638		2.20	%
Marketable and restricted equity securities (2)		59,638				885		5.94	%			59,224				888		5.99	%			67,607				1,029		6.09	%
Short-term investments		70,707				487		2.76	%			44,634				351		3.14	%			31,061				145		1.87	%
Total investments		703,734				4,399		2.50	%			697,262				4,449		2.55	%			761,793				4,812		2.53	%
Loans and Leases:
Commercial real estate loans (3)		3,539,485				41,724		4.61	%			3,447,136				41,363		4.75	%			3,260,634				37,332		4.48	%
Commercial loans (3)		838,092				10,291		4.81	%			811,890				9,879		4.82	%			819,383				9,862		4.72	%
Equipment financing (3)		1,019,179				18,519		7.27	%			1,005,376				18,291		7.28	%			933,007				16,220		6.95	%
Residential mortgage loans (3)		776,482				8,215		4.23	%			774,533				8,186		4.23	%			756,421				7,648		4.04	%
Other consumer loans (3)		415,082				4,917		4.69	%			417,600				5,187		4.97	%			412,248				4,928		4.73	%
Total loans and leases		6,588,320				83,666		5.08	%			6,456,535				82,906		5.14	%			6,181,693				75,990		4.92	%
Total interest-earning assets		7,292,054				88,065		4.83	%			7,153,797				87,355		4.88	%			6,943,486				80,802		4.65	%
Allowance for loan and lease losses		(59,386	)									(58,137	)									(58,576	)
Non-interest-earning assets		513,824										475,736										417,503
Total assets	$	7,746,492									$	7,571,396									$	7,302,413
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts	$	335,091				129		0.15	%		$	343,745				50		0.06	%		$	344,760				72		0.08	%
Savings accounts		600,609				820		0.54	%			602,333				737		0.49	%			599,514				472		0.31	%
Money market accounts		1,683,548				5,413		1.28	%			1,683,735				5,571		1.33	%			1,668,402				4,367		1.04	%
Certificates of deposit		2,000,941				11,938		2.37	%			1,950,704				11,354		2.33	%			1,612,551				7,005		1.72	%
Total interest-bearing deposits		4,620,189				18,300		1.57	%			4,580,517				17,712		1.55	%			4,225,227				11,916		1.12	%
Borrowings
Advances from the FHLBB		759,738				4,859		2.50	%			761,651				4,825		2.51	%			907,306				4,979		2.15	%
Subordinated debentures and notes		83,530				1,300		6.22	%			83,490				1,305		6.25	%			83,370				1,301		6.24	%
Other borrowed funds		79,620				211		1.05	%			84,600				208		0.99	%			56,918				108		0.75	%
Total borrowings		922,888				6,370		2.70	%			929,741				6,338		2.70	%			1,047,594				6,388		2.39	%
Total interest-bearing liabilities		5,543,077				24,670		1.77	%			5,510,258				24,050		1.75	%			5,272,821				18,304		1.38	%
Non-interest-bearing liabilities:
Demand checking accounts		1,096,788										1,015,524										1,023,610
Other non-interest-bearing liabilities		178,564										133,790										107,449
Total liabilities		6,818,429										6,659,572										6,403,880
Brookline Bancorp, Inc. stockholders’ equity		928,063										911,824										889,259
Noncontrolling interest in subsidiary		—										—										9,274
Total liabilities and equity	$	7,746,492									$	7,571,396									$	7,302,413
Net interest income (tax-equivalent basis) /Interest-rate spread (4)						63,395		3.06	%							63,305		3.13	%							62,498		3.27	%
Less adjustment of tax-exempt income						159										171										166
Net interest income					$	63,236									$	63,134									$	62,332
Net interest margin (5)								3.45	%									3.55	%									3.57	%
(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
Average Yields / Costs (Unaudited)
	Nine Months Ended
	September 30, 2019										September 30, 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)	$	591,535			$	9,526		2.15	%		$	658,993			$	10,632		2.15	%
Marketable and restricted equity securities (2)		59,747				2,693		6.01	%			67,056				2,956		5.88	%
Short-term investments		49,833				1,105		2.96	%			34,295				444		1.73	%
Total investments		701,115				13,324		2.53	%			760,344				14,032		2.46	%
Loans and Leases:
Commercial real estate loans (3)		3,454,996				123,106		4.70	%			3,209,798				107,133		4.40	%
Commercial loans (3)		814,392				29,773		4.82	%			809,849				27,609		4.50	%
Equipment financing (3)		1,004,363				54,795		7.27	%			905,345				46,823		6.90	%
Residential mortgage loans (3)		776,440				24,524		4.21	%			740,507				21,933		3.95	%
Other consumer loans (3)		413,645				15,155		4.89	%			400,304				13,333		4.45	%
Total loans and leases		6,463,836				247,353		5.10	%			6,065,803				216,831		4.77	%
Total interest-earning assets		7,164,951				260,677		4.85	%			6,826,147				230,863		4.51	%
Allowance for loan and lease losses		(58,759	)									(58,935	)
Non-interest-earning assets		479,046										401,999
Total assets	$	7,585,238									$	7,169,211
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts	$	337,671				321		0.13	%		$	342,418				195		0.08	%
Savings accounts		609,284				2,154		0.47	%			619,317				1,278		0.28	%
Money market accounts		1,681,594				16,259		1.29	%			1,735,710				10,455		0.81	%
Certificates of deposit		1,932,625				33,226		2.30	%			1,428,799				16,306		1.53	%
Total interest-bearing deposits		4,561,174				51,960		1.52	%			4,126,244				28,234		0.91	%
Borrowings
Advances from the FHLBB		758,992				14,294		2.48	%			960,399				13,423		1.84	%
Subordinated debentures and notes		83,491				3,913		6.25	%			83,330				3,879		6.21	%
Other borrowed funds		84,477				640		1.01	%			46,643				273		0.78	%
Total borrowings		926,960				18,847		2.68	%			1,090,372				17,575		2.13	%
Total interest-bearing liabilities		5,488,134				70,807		1.72	%			5,216,616				45,809		1.17	%
Non-interest-bearing liabilities:
Demand checking accounts		1,046,683										986,763
Other non-interest-bearing liabilities		141,305										92,280
Total liabilities		6,676,122										6,295,659
Brookline Bancorp, Inc. stockholders’ equity		908,994										864,675
Noncontrolling interest in subsidiary		122										8,877
Total liabilities and equity	$	7,585,238									$	7,169,211
Net interest income (tax-equivalent basis) /Interest-rate spread (4)						189,870		3.13	%							185,054		3.34	%
Less adjustment of tax-exempt income						501										514
Net interest income					$	189,369									$	184,540
Net interest margin (5)								3.54	%									3.62	%
(1) Tax-exempt income on debt securities, equity securities and revenue bonds included in commercial real estate loans is included on a tax-equivalent basis.
(2) Average balances include unrealized gains (losses) on investment securities. Dividend payments may not be consistent and average yield on equity securities may vary from month to month.
(3) Loans on nonaccrual status are included in the average balances.
(4) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
(5) Net interest margin represents net interest income (tax-equivalent basis) divided by average interest-earning assets on an actual/actual basis.

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Non-GAAP Financial Information (Unaudited)
					At and for the Three Months Ended   September 30,								At and for the Nine Months Ended   September 30,
						2019				2018				2019				2018
Reconciliation Table - Non-GAAP Financial Information					(Dollars in Thousands Except Share Data)
Net income attributable to Brookline Bancorp, Inc.					$	22,596			$	22,460			$	65,534			$	61,924
Less:
Security gains (after-tax)						(87	)			—				284				883
Add:
Merger and restructuring-related expenses (after-tax)						845				17				851				2,478
Operating earnings					$	23,528			$	22,477			$	66,101			$	63,519
Operating earnings per common share:
Basic					$	0.30			$	0.28			$	0.83			$	0.80
Diluted						0.29				0.28				0.83				0.80
Weighted average common shares outstanding during the period:
Basic						79,700,403				80,315,050				79,676,456				79,471,238
Diluted						79,883,510				80,515,467				79,867,683				79,740,992
Return on average assets *						1.17	%			1.23	%			1.15	%			1.15	%
Less:
Security gains (after-tax) *						—	%			—	%			—	%			0.02	%
Add:
Merger and restructuring-related expenses (after-tax) *						0.04	%			—	%			0.01	%			0.05	%
Operating return on average assets *						1.21	%			1.23	%			1.16	%			1.18	%
Return on average tangible assets *						1.19	%			1.26	%			1.18	%			1.18	%
Less:
Security gains (after-tax) *						—	%			—	%			0.01	%			0.02	%
Add:
Merger and restructuring-related expenses (after-tax) *						0.05	%			—	%			0.02	%			0.05	%
Operating return on average tangible assets *						1.24	%			1.26	%			1.19	%			1.21	%
Return on average stockholders' equity *						9.74	%			10.10	%			9.61	%			9.55	%
Less:
Security gains (after-tax) *						(0.04	)%			—	%			0.04	%			0.14	%
Add:
Merger and restructuring-related expenses (after-tax) *						0.36	%			0.01	%			0.13	%			0.38	%
Operating return on average stockholders' equity *						10.14	%			10.11	%			9.70	%			9.79	%
Return on average tangible stockholders' equity *						11.85	%			12.44	%			11.76	%			11.76	%
Less:
Security gains (after-tax) *						(0.05	)%			—	%			0.05	%			0.17	%
Add:
Merger and restructuring-related expenses (after-tax) *						0.44	%			0.01	%			0.15	%			0.47	%
Operating return on average tangible stockholders' equity *						12.34	%			12.45	%			11.86	%			12.06	%
* Ratios at and for the three and nine months ended are annualized.
	At and for the Three Months Ended
	September 30, 2019				June 30, 2019				March 31, 2019				December 31, 2018				September 30, 2018
	(Dollars in Thousands)
Net income, as reported	$	22,596			$	20,471			$	22,467			$	21,138			$	22,460
Average total assets	$	7,746,492			$	7,571,396			$	7,434,038			$	7,382,931			$	7,302,413
Less: Average goodwill and average identified intangible assets, net		165,493				165,914				166,327				166,777				167,313
Average tangible assets	$	7,580,999			$	7,405,482			$	7,267,711			$	7,216,154			$	7,135,100
Return on average tangible assets (annualized)		1.19	%			1.11	%			1.24	%			1.17	%			1.26	%
Average total stockholders’ equity	$	928,063			$	911,824			$	886,639			$	899,244			$	889,259
Less: Average goodwill and average identified intangible assets, net		165,493				165,914				166,327				166,777				167,313
Average tangible stockholders’ equity	$	762,570			$	745,910			$	720,312			$	732,467			$	721,946
Return on average tangible stockholders’ equity (annualized)		11.85	%			10.98	%			12.48	%			11.54	%			12.44	%
Brookline Bancorp, Inc. stockholders’ equity	$	932,311			$	918,468			$	900,572			$	900,140			$	890,368
Less:
Goodwill		160,427				160,427				160,427				160,427				160,427
Identified intangible assets, net		4,843				5,264				5,684				6,086				6,623
Tangible stockholders' equity	$	767,041			$	752,777			$	734,461			$	733,627			$	723,318
Total assets	$	7,878,436			$	7,636,980			$	7,519,130			$	7,392,805			$	7,320,596
Less:
Goodwill		160,427				160,427				160,427				160,427				160,427
Identified intangible assets, net		4,843				5,264				5,684				6,086				6,623
Tangible assets	$	7,713,166			$	7,471,289			$	7,353,019			$	7,226,292			$	7,153,546
Tangible stockholders’ equity to tangible assets		9.94	%			10.08	%			9.99	%			10.15	%			10.11	%
Tangible stockholders' equity	$	767,041			$	752,777			$	734,461			$	733,627			$	723,318
Number of common shares issued		85,177,172				85,177,172				85,177,172				85,177,172				85,177,172
Less:
Treasury shares		5,003,127				5,025,764				5,020,025				5,020,025				4,291,317
Unallocated ESOP shares		92,337				98,208				104,079				109,950				118,050
Unvested restricted shares		407,784				377,122				390,636				393,636				398,094
Number of common shares outstanding		79,673,924				79,676,078				79,662,432				79,653,561				80,369,711
Tangible book value per common share	$	9.63			$	9.45			$	9.22			$	9.21			$	9.00
Allowance for loan and lease losses	$	59,135			$	58,635			$	58,041			$	58,692			$	59,997
Less:
Allowance for acquired loans and leases losses		1,955				1,857				1,795				1,814				1,817
Allowance for originated loan and lease losses	$	57,180			$	56,778			$	56,246			$	56,878			$	58,180
Total loans and leases	$	6,646,821			$	6,505,329			$	6,388,197			$	6,303,516			$	6,227,707
Less:
Total acquired loans and leases		310,745				337,420				370,177				394,407				426,865
Total originated loans and leases	$	6,336,076			$	6,167,909			$	6,018,020			$	5,909,109			$	5,800,842
Allowance for loan and lease losses related to originated loans and leases as a percentage of originated loans and leases		0.90	%			0.92	%			0.93	%			0.96	%			1.00	%