BRKL Brookline Bancorp Inc

 Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced net loss of $(17.3) million, or $(0.22) per basic and diluted share, for the first quarter of 2020, compared to net income of $22.2 million, or $0.28 per basic and diluted share, for the fourth quarter of 2019, and net income of $22.5 million, or $0.28 per basic and diluted share, for the first quarter of 2019.

Paul Perrault, President and Chief Executive Officer of the Company noted, “I would like to take a moment to acknowledge the ongoing public health concern surrounding the COVID-19 pandemic. In these unprecedented times, I am thankful for our employees who have risen to the challenge of providing support for our customers and our communities.”

On March 27, 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) which, among other things, provides small business borrowers with several options for relief including automatic payment deferrals from the Small Business Administration (the “SBA”) and additional funding options pursuant to the Paycheck Protection Program (“PPP”).  PPP loans were made available beginning on April 3, 2020 through approved SBA lenders, including the Company’s subsidiary banks, Brookline Bank and Bank Rhode Island. Brookline Bank and Bank Rhode Island immediately began accepting loan applications pursuant to the PPP program on April 3, 2020. The initial PPP funding provided by Congress was exhausted as of April 16 at which time, together, Brookline Bank and Bank Rhode Island made 2,183 loans totaling $518 million.  In addition to providing access to the PPP program, the Company has been proactively working with commercial and consumer customers and providing relief options including payment deferrals and fee waivers where appropriate.

BALANCE SHEET

Total assets at March 31, 2020 increased $604.7 million to $8.5 billion from $7.9 billion at December 31, 2019, and increased $942.5 million from $7.5 billion at March 31, 2019. At March 31, 2020, total loans and leases were $6.8 billion, representing an increase of $84.7 million from December 31, 2019, and an increase of $434.3 million from March 31, 2019, primarily driven by growth in the commercial real estate portfolio.

Investment securities at March 31, 2020 increased $174.7 million to $764.1 million, as compared to $589.4 million at December 31, 2019, and increased approximately $157.0 million from $607.1 million at March 31, 2019. Cash and cash equivalents at March 31, 2020 increased $263.0 million to $340.8 million, as compared to $77.8 million at December 31, 2019, and increased $228.4 million from $112.3 million at March 31, 2019. As of March 31, 2020, securities, cash and cash equivalents represented 13.1 percent of total assets as compared to 8.5 percent and 9.6 percent as of December 31, 2019 and March 31, 2019, respectively.

Total deposits at March 31, 2020 increased $59.9 million from $5.8 billion at December 31, 2019 to $5.9 billion and increased $269.3 million from $5.6 billion at March 31, 2019.

Total borrowed funds at March 31, 2020 increased $389.1 million to $1.3 billion from $902.7 million at December 31, 2019 and increased $425.8 million from $866.0 million at March 31, 2019.

The ratio of stockholders’ equity to total assets was 10.78 percent at March 31, 2020, as compared to 12.04 percent at December 31, 2019, and 11.98 percent at March 31, 2019. The ratio of tangible stockholders’ equity to tangible assets was 9.02 percent at March 31, 2020, as compared to 10.15 percent at December 31, 2019, and 9.99 percent at March 31, 2019. Tangible book value per share decreased $0.31 from $9.80 at December 31, 2019 to $9.49 at March 31, 2020, compared to $9.22 at March 31, 2019.

NET INTEREST INCOME

Net interest income decreased $2.2 million to $61.7 million during the first quarter of 2020 from $63.9 million at the quarter ended December 31, 2019. The net interest margin decreased 12 basis points to 3.31 percent for the three months ended March 31, 2020.

NON-INTEREST INCOME

Non-interest income for the quarter ended March 31, 2020 increased $1.5 million to $9.3 million from $7.8 million for the quarter ended December 31, 2019. The increase was primarily driven by increases of  $1.2 million in gain on investment securities, net and $1.1 million in other non-interest income, partially offset by decreases of $0.3 million in deposit fees, $0.3 million in loan level derivative income, net and $0.2 million in gain on sales of loans and leases.

PROVISION FOR CREDIT LOSSES

On January 1, 2020, the Company adopted ASU 2016-13 "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", commonly referred to as CECL.  The Company is using a third-party provided loss estimation model, which calculates the effects of various third-party economic forecasts using the Company's loan portfolio characteristics to determine potential losses over the remaining lifetime of the loans consistent with the requirements of CECL.

Upon adoption of CECL on January 1, 2020, the allowance for loan losses increased $6.6 million, and the reserve for unfunded commitments increased $9.0 million for a combined increase of $15.6 million for the allowance for credit losses ("ACL"). The after tax impact of $11.7 million or $0.15 per share was recognized as a reduction to retained earnings, representing the cumulative effective adjustment from a change in accounting policies.

 For the first quarter of 2020,  the latest available forecast was used to evaluate the economic effects of the COVID-19 pandemic on the Company’s loan portfolios which resulted in the Company recording a provision for credit losses of  $54.1 million for the quarter ended March 31, 2020, compared to $3.6 million for the quarter ended December 31, 2019.  Other than one large credit, asset quality was consistent during quarter and the increase in provision was primarily driven by the forecasted economic effect of the COVID-19 pandemic.

Total net charge-offs for the first quarter of 2020 were $2.2 million compared to $1.6 million in the fourth quarter of 2019. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis increased to 13 basis points for the first quarter of 2020 from 10 basis points for the fourth quarter of 2019.

The allowance for loan and lease losses increased $45.5 million from January 1, 2020 and $52.1 million from December 31, 2019 and represented 1.66 percent of total loans and leases at March 31, 2020, compared to 0.91 percent at December 31, 2019, and 0.91 percent at March 31, 2019.

NON-INTEREST EXPENSE

Non-interest expense for the quarter ended March 31, 2020 increased $1.9 million to $40.7 million from $38.8 million for the quarter ended December 31, 2019. The increase was primarily driven by increases of $1.2 million in compensation and employee benefits expense, $0.5 million in professional services expense, $0.3 million in FDIC insurance expense, and $0.2 million in advertising and marketing expense, partially offset by a decrease of $0.3 million in other non-interest expense.

PROVISION FOR INCOME TAXES

The effective tax rate was 27.5 percent and 24.2 percent for the three months ended March 31, 2020 and December 31, 2019, respectively. The increase in effective tax rate was driven by the tax benefit recognition for the net operating loss carryback of the First Common Bank acquisition as a result of the Coronavirus Aid, Relief and Economic Security Act (the CARES Act).

RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

The annualized return on average assets decreased to a negative 0.87 percent during the first quarter of 2020 from a positive 1.13 percent for the fourth quarter of 2019.

The annualized return on average stockholders' equity decreased to a negative 7.30 percent during the first quarter of 2020 from 9.42 percent for the fourth quarter of 2019. The annualized return on average tangible stockholders’ equity decreased to a negative 8.84 percent for the first quarter of 2020 from 11.42 percent for the fourth quarter of 2019.

ASSET QUALITY

The ratio of nonperforming loans and leases to total loans and leases was 0.57 percent at March 31, 2020, an increase from 0.29 percent at December 31, 2019. Nonperforming loans and leases increased $19.6 million to $39.1 million at March 31, 2020 from $19.5 million at December 31, 2019. The increase was primarily driven by the inclusion of $9.7 million of acquired impaired credits under the new accounting standard and  one commercial relationship of $8.5 million that was placed on nonaccural in the first quarter. The ratio of nonperforming assets to total assets was 0.49 percent at March 31, 2020, an increase from 0.28 percent at December 31, 2019. Nonperforming assets increased $19.0 million to $41.1 million at March 31, 2020 from $22.1 million at December 31, 2019.

Nonaccrual loans increased $19.6 million from December 31, 2019 to $39.1 million. The increase was primarily driven by the implementation of CECL, which required purchase credit-impaired loans to be classified as non-accruing based on performance as well as one commercial relationship of $8.5 million placed on nonaccrual during the first quarter.

DIVIDEND DECLARED

The Company’s Board of Directors approved a dividend of $0.115 per share for the quarter ended March 31, 2020. The dividend will be paid on May 29, 2020 to stockholders of record on May 15, 2020.

CONFERENCE CALL

The Company will conduct a conference call/webcast at 1:30 PM Eastern Daylight Time on Thursday, April 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) or by visiting https://services.choruscall.com/links/brkl200430.html.  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 10142047. 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 $8.5 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. Statements contained in this press release that do not describe historical or current facts are forward-looking statements, including statements regard the potential effects of COVID-19 on the Company’s business, credit quality, financial condition, liquidity and results of operations. Forward-looking statements made with regard to the potential effects of COVID-19 on the Company’s business, financial condition, credit quality, liquidity and results of operation may differ, possibly materially, from what is included in this press release due to factors and future developments that are uncertain and beyond the scope of the Company’s control. These included, but are not limited to, the length and extent of the economic contraction as a result of the COVID-19 pandemic; continued deterioration in economic conditions on a national basis and in the local markets in which the Company operates; changes in consumer behavior due to changing business and economic conditions or legislative or regulatory initiatives; reputational risk relating to the Company’s participation in the Paycheck Protection Program and other pandemic-related legislative and regulatory initiatives and programs; and continued turbulence in capital and debt markets. Forward-looking statements involve risks and uncertainties which are difficult to predict. The Company’s actual results could differ materially from those projected in the forward-looking statements as a result of, among others, the risks outlined in the Company’s Annual Report on Form 10-K, as updated by its Quarterly Reports on Form 10-Q and other filings submitted to the 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.

INVESTOR RELATIONS:

Contact: Carl M. Carlson Brookline Bancorp, Inc. Chief Financial Officer (617) 425-5331 ccarlson@brkl.com 

MEDIA INQUIRIES:

Contact: Karen Schwartzman Polaris Public Relations (617) 437-9990

A PDF accompanying this announcement is available at http://ml.globenewswire.com/Resource/Download/d63fc230-2142-4310-aaa1-3f291c604c05

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Selected Financial Highlights (Unaudited)
	At and for the Three Months Ended
	March 31, 2020				December 31, 2019				September 30, 2019				June 30, 2019				March 31, 2019
	(Dollars In Thousands Except per Share Data)
Earnings Data:
Net interest income	$	61,712			$	63,931			$	63,236			$	63,134			$	62,999
Provision for credit losses		54,114				3,602				871				3,757				1,353
Non-interest income		9,328				7,756				7,929				7,478				6,630
Non-interest expense		40,748				38,815				40,191				39,604				38,871
(Loss) income before provision for income taxes		(23,822	)			29,270				30,103				27,251				29,405
Net (loss) income attributable to Brookline Bancorp, Inc.		(17,276	)			22,183				22,596				20,471				22,467
Performance Ratios:
Net interest margin (1)		3.31	%			3.43	%			3.45	%			3.55	%			3.64	%
Interest-rate spread (1)		2.91	%			3.05	%			3.06	%			3.13	%			3.18	%
Return on average assets (annualized)		(0.87	)%			1.13	%			1.17	%			1.08	%			1.21	%
Return on average tangible assets (annualized) (non-GAAP)		(0.89	)%			1.15	%			1.19	%			1.11	%			1.24	%
Return on average stockholders' equity (annualized)		(7.30	)%			9.42	%			9.74	%			8.98	%			10.14	%
Return on average tangible stockholders' equity (annualized) (non-GAAP)		(8.84	)%			11.42	%			11.85	%			10.98	%			12.48	%
Efficiency ratio (2)		57.36	%			54.15	%			56.48	%			56.09	%			55.83	%
Per Common Share Data:
Net (loss) income — Basic	$	(0.22	)		$	0.28			$	0.28			$	0.26			$	0.28
Net (loss) income — Diluted		(0.22	)			0.28				0.28				0.26				0.28
Cash dividends declared		0.115				0.115				0.115				0.110				0.110
Book value per share (end of period)		11.57				11.87				11.70				11.53				11.30
Tangible book value per share (end of period) (non-GAAP)		9.49				9.80				9.63				9.45				9.22
Stock price (end of period)		11.28				16.46				14.73				15.38				14.40
Balance Sheet:
Total assets	$	8,461,591			$	7,856,853			$	7,878,436			$	7,636,980			$	7,519,130
Total loans and leases		6,822,527				6,737,816				6,646,821				6,505,329				6,388,197
Total deposits		5,889,938				5,830,072				5,729,339				5,622,493				5,620,633
Brookline Bancorp, Inc. stockholders’ equity		912,568				945,606				932,311				918,468				900,572
Asset Quality:
Nonperforming assets	$	41,122			$	22,092			$	23,760			$	23,267			$	26,721
Nonperforming assets as a percentage of total assets		0.49	%			0.28	%			0.30	%			0.30	%			0.36	%
Allowance for loan and lease losses	$	113,181			$	61,082			$	59,135			$	58,635			$	58,041
Allowance for loan and lease losses as a percentage of total loans and leases		1.66	%			0.91	%			0.89	%			0.90	%			0.91	%
Net loan and lease charge-offs	$	2,234			$	1,622			$	366			$	3,082			$	2,101
Net loan and lease charge-offs as a percentage of average loans and leases (annualized)		0.13	%			0.10	%			0.02	%			0.19	%			0.13	%
Capital Ratios:
Stockholders’ equity to total assets		10.78	%			12.04	%			11.83	%			12.03	%			11.98	%
Tangible stockholders’ equity to tangible assets (non-GAAP)		9.02	%			10.15	%			9.94	%			10.08	%			9.99	%
(1) Calculated on a fully tax-equivalent basis.
(2) Calculated as non-interest expense as a percentage of net interest income plus non-interest income.

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets (Unaudited)
	March 31, 2020				December 31, 2019				September 30, 2019				June 30, 2019				March 31, 2019
ASSETS	(In Thousands Except Share Data)
Cash and due from banks	$	86,996			$	33,589			$	93,841			$	46,532			$	51,276
Short-term investments		253,772				44,201				84,689				46,264				61,063
Total cash and cash equivalents		340,768				77,790				178,530				92,796				112,339
Investment securities available-for-sale		761,539				498,995				467,339				482,497				489,020
Investment securities held-to-maturity		—				86,780				95,163				103,572				113,694
Equity securities held-for-trading		2,558				3,581				4,581				4,698				4,341
Total investment securities		764,097				589,356				567,083				590,767				607,055
Loans and leases held-for-sale		—				—				—				1,575				869
Loans and leases:
Commercial real estate loans		3,762,158				3,669,222				3,589,451				3,493,554				3,410,468
Commercial loans and leases		1,826,866				1,838,748				1,850,388				1,826,336				1,786,582
Consumer loans		1,233,503				1,229,846				1,206,982				1,185,439				1,191,147
Total loans and leases		6,822,527				6,737,816				6,646,821				6,505,329				6,388,197
Allowance for loan and lease losses		(113,181	)			(61,082	)			(59,135	)			(58,635	)			(58,041	)
Net loans and leases		6,709,346				6,676,734				6,587,686				6,446,694				6,330,156
Restricted equity securities		68,472				53,818				57,896				55,270				54,192
Premises and equipment, net of accumulated depreciation		73,786				74,350				75,229				75,373				75,520
Right-of-use asset operating leases		24,789				24,876				26,216				25,928				26,205
Deferred tax asset		38,141				25,017				25,204				25,629				27,084
Goodwill		160,427				160,427				160,427				160,427				160,427
Identified intangible assets, net of accumulated amortization		4,087				4,423				4,843				5,264				5,684
Other real estate owned and repossessed assets		2,038				2,631				2,132				1,966				3,912
Other assets		275,640				167,431				193,190				155,291				115,687
Total assets	$	8,461,591			$	7,856,853			$	7,878,436			$	7,636,980			$	7,519,130
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand checking accounts	$	1,175,329			$	1,141,578			$	1,106,684			$	1,042,854			$	1,011,031
NOW accounts		361,854				371,380				340,321				340,082				369,896
Savings accounts		653,026				613,467				604,481				585,322				625,770
Money market accounts		1,676,092				1,682,005				1,666,231				1,669,782				1,706,708
Certificate of deposit accounts		2,023,637				2,021,642				2,011,622				1,984,453				1,907,228
Total deposits		5,889,938				5,830,072				5,729,339				5,622,493				5,620,633
Borrowed funds:
Advances from the FHLBB		1,137,431				758,469				854,481				791,559				730,018
Subordinated debentures and notes		83,630				83,591				83,551				83,512				83,472
Other borrowed funds		70,743				60,689				48,373				55,693				52,515
Total borrowed funds		1,291,804				902,749				986,405				930,764				866,005
Operating lease liabilities		24,789				24,876				26,216				25,928				26,205
Mortgagors’ escrow accounts		7,441				7,232				7,072				6,823				7,517
Reserve for unfunded credits		17,222				1,880				1,847				1,841				1,760
Accrued expenses and other liabilities		317,829				144,438				195,246				130,663				96,438
Total liabilities		7,549,023				6,911,247				6,946,125				6,718,512				6,618,558
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		737,422				736,601				735,928				737,584				736,872
Retained earnings, partially restricted		227,359				265,376				252,435				238,625				226,929
Accumulated other comprehensive income (loss)		16,947				2,283				2,775				1,141				(4,393	)
Treasury stock, at cost;
5,862,811 shares, 5,003,127 shares, 5,003,127 shares, 5,025,764 shares, and 5,020,025 shares, respectively		(69,617	)			(59,073	)			(59,176	)			(59,199	)			(59,121	)
Unallocated common stock held by the Employee Stock Ownership Plan;
72,441 shares, 79,548 shares, 92,337 shares, 98,208 shares, and 104,079 shares, respectively		(395	)			(433	)			(503	)			(535	)			(567	)
Total stockholders' equity		912,568				945,606				932,311				918,468				900,572
Total liabilities and stockholders' equity	$	8,461,591			$	7,856,853			$	7,878,436			$	7,636,980			$	7,519,130

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
	Three Months Ended
	March 31, 2020				December 31, 2019			September 30, 2019				June 30, 2019			March 31, 2019
	(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases	$	79,559			$	83,309		$	83,566			$	82,798		$	80,672
Debt securities		2,976				2,910			2,977				3,158			3,236
Marketable and restricted equity securities		778				813			876				877			911
Short-term investments		209				418			487				351			267
Total interest and dividend income		83,522				87,450			87,906				87,184			85,086
Interest expense:
Deposits		16,240				17,655			18,300				17,712			15,948
Borrowed funds		5,570				5,864			6,370				6,338			6,139
Total interest expense		21,810				23,519			24,670				24,050			22,087
Net interest income		61,712				63,931			63,236				63,134			62,999
Provision for credit losses		54,114				3,602			871				3,757			1,353
Net interest income after provision for credit losses		7,598				60,329			62,365				59,377			61,646
Non-interest income:
Deposit fees		2,458				2,710			2,710				2,680			2,523
Loan fees		550				567			719				398			413
Loan level derivative income, net		2,156				2,494			2,251				1,772			1,745
Gain (loss) on investment securities, net		1,330				133			(116	)			357			134
Gain on sales of loans and leases held-for-sale		120				309			550				561			289
Other		2,714				1,543			1,815				1,710			1,526
Total non-interest income		9,328				7,756			7,929				7,478			6,630
Non-interest expense:
Compensation and employee benefits		25,219				23,987			24,871				23,953			23,743
Occupancy		3,953				4,102			3,895				3,752			3,947
Equipment and data processing		4,703				4,601			4,749				4,641			4,661
Professional services		1,651				1,120			1,083				1,087			1,076
FDIC insurance		378				53			54				745			593
Advertising and marketing		1,075				828			1,035				1,112			1,069
Amortization of identified intangible assets		336				420			421				420			402
Merger and restructuring expense		—				—			1,125				—			—
Other		3,433				3,704			2,958				3,894			3,380
Total non-interest expense		40,748				38,815			40,191				39,604			38,871
(Loss) income before provision for income taxes		(23,822	)			29,270			30,103				27,251			29,405
(Benefit) provision for income taxes		(6,546	)			7,087			7,507				6,780			6,895
Net (loss) income before noncontrolling interest in subsidiary		(17,276	)			22,183			22,596				20,471			22,510
Less net income attributable to noncontrolling interest in subsidiary		—				—			—				—			43
Net (loss) income attributable to Brookline Bancorp, Inc.	$	(17,276	)		$	22,183		$	22,596			$	20,471		$	22,467
Earnings per common share:
Basic	$	(0.22	)		$	0.28		$	0.28			$	0.26		$	0.28
Diluted	$	(0.22	)		$	0.28		$	0.28			$	0.26		$	0.28
Weighted average common shares outstanding during the period:
Basic		79,481,462				79,682,724			79,700,403				79,669,922			79,658,583
Diluted		79,665,774				79,845,447			79,883,510				79,886,292			79,843,578
Dividends paid per common share	$	0.115			$	0.115		$	0.110			$	0.110		$	0.105

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Asset Quality Analysis (Unaudited)
	At and for the Three Months Ended
	March 31, 2020				December 31, 2019				September 30, 2019				June 30, 2019				March 31, 2019
	(Dollars in Thousands)
NONPERFORMING ASSETS:
Loans and leases accounted for on a nonaccrual basis:
Commercial real estate mortgage	$	10,937			$	2,845			$	2,910			$	2,273			$	2,889
Multi-family mortgage		85				84				87				94				101
Construction		—				—				—				—				396
Total commercial real estate loans		11,022				2,929				2,997				2,367				3,386
Commercial		12,991				4,909				3,139				6,349				5,728
Equipment financing		10,356				9,822				12,817				9,931				10,253
Condominium association		203				151				163				170				224
Total commercial loans and leases		23,550				14,882				16,119				16,450				16,205
Residential mortgage		3,446				753				1,605				1,642				2,188
Home equity		1,059				896				904				835				1,022
Other consumer		7				1				3				7				8
Total consumer loans		4,512				1,650				2,512				2,484				3,218
Total nonaccrual loans and leases		39,084				19,461				21,628				21,301				22,809
Other real estate owned		—				—				201				957				3,054
Other repossessed assets		2,038				2,631				1,931				1,009				858
Total nonperforming assets	$	41,122			$	22,092			$	23,760			$	23,267			$	26,721
Loans and leases past due greater than 90 days and still accruing	$	10,153			$	10,109			$	11,885			$	11,612			$	16,800
Troubled debt restructurings on accrual		16,480				17,076				22,233				27,761				28,543
Troubled debt restructurings on nonaccrual		5,819				6,104				5,763				8,431				7,597
Total troubled debt restructurings	$	22,299			$	23,180			$	27,996			$	36,192			$	36,140
Nonperforming loans and leases as a percentage of total loans and leases		0.57	%			0.29	%			0.33	%			0.33	%			0.36	%
Nonperforming assets as a percentage of total assets		0.49	%			0.28	%			0.30	%			0.30	%			0.36	%
PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:
Allowance for loan and lease losses at beginning of period	$	61,082			$	59,135			$	58,635			$	58,041			$	58,692
CECL adjustment to retained earnings		6,632				—				—				—				—
Charge-offs		(2,539	)			(1,894	)			(1,190	)			(3,412	)			(2,542	)
Recoveries		305				272				824				330				441
Net charge-offs		(2,234	)			(1,622	)			(366	)			(3,082	)			(2,101	)
Provision for loan and lease losses excluding unfunded commitments *		47,701				3,569				866				3,676				1,450
Allowance for loan and lease losses at end of period	$	113,181			$	61,082			$	59,135			$	58,635			$	58,041
Allowance for loan and lease losses as a percentage of total loans and leases		1.66	%			0.91	%			0.89	%			0.90	%			0.91	%
NET CHARGE-OFFS:
Commercial loans and leases		2,280				1,589				403				3,107				2,124
Consumer loans		(46	)			33				(37	)			(25	)			(23	)
Total net charge-offs	$	2,234			$	1,622			$	366			$	3,082			$	2,101
Net loan and lease charge-offs as a percentage of average loans and leases (annualized)		0.13	%			0.10	%			0.02	%			0.19	%			0.13	%
*provision for loan and lease losses does not include provision of $6.4 million for credit losses on unfunded commitments during the three months ended March 31, 2020.

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Average Yields / Costs (Unaudited)
	Three Months Ended
	March 31, 2020									December 31, 2019									March 31, 2019
	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)	$	605,885		$	3,024		2.00	%		$	567,037		$	2,957		2.09	%		$	608,194		$	3,289		2.16	%
Marketable and restricted equity securities (2)		58,881			786		5.33	%			59,763			823		5.51	%			60,389			920		6.10	%
Short-term investments		84,309			209		0.99	%			93,997			418		1.78	%			33,034			267		3.23	%
Total investments		749,075			4,019		2.15	%			720,797			4,198		2.33	%			701,617			4,476		2.55	%
Loans and Leases:
Commercial real estate loans (3)		3,697,011			40,468		4.33	%			3,605,169			40,976		4.45	%			3,376,576			40,019		4.74	%
Commercial loans (3)		783,309			8,328		4.21	%			826,116			10,066		4.78	%			792,695			9,603		4.85	%
Equipment financing (3)		1,052,846			18,946		7.20	%			1,037,431			19,271		7.43	%			988,193			17,985		7.28	%
Residential mortgage loans (3)		810,583			7,934		3.92	%			804,672			8,402		4.18	%			778,325			8,123		4.17	%
Other consumer loans (3)		417,815			3,955		3.79	%			417,950			4,680		4.43	%			408,177			5,051		5.01	%
Total loans and leases		6,761,564			79,631		4.71	%			6,691,338			83,395		4.99	%			6,343,966			80,781		5.09	%
Total interest-earning assets		7,510,639			83,650		4.46	%			7,412,135			87,593		4.73	%			7,045,583			85,257		4.84	%
Non-interest-earning assets		455,187									448,458									388,455
Total assets	$	7,965,826								$	7,860,593								$	7,434,038
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts	$	359,641			116		0.13	%		$	344,036			115		0.13	%		$	334,167			142		0.17	%
Savings accounts		626,945			643		0.41	%			604,276			746		0.49	%			626,414			597		0.39	%
Money market accounts		1,678,649			4,241		1.02	%			1,685,885			4,947		1.16	%			1,676,199			5,275		1.28	%
Certificates of deposit		2,040,903			11,240		2.22	%			2,026,753			11,847		2.32	%			1,844,511			9,934		2.18	%
Total interest-bearing deposits		4,706,138			16,240		1.39	%			4,660,950			17,655		1.50	%			4,481,291			15,948		1.44	%
Borrowings
Advances from the FHLBB		772,462			4,097		2.10	%			753,460			4,407		2.29	%			755,542			4,610		2.44	%
Subordinated debentures and notes		83,609			1,284		6.14	%			83,570			1,293		6.19	%			83,451			1,308		6.27	%
Other borrowed funds		91,052			189		0.84	%			64,543			164		1.01	%			88,600			221		1.01	%
Total borrowings		947,123			5,570		2.33	%			901,573			5,864		2.55	%			927,593			6,139		2.65	%
Total interest-bearing liabilities		5,653,261			21,810		1.55	%			5,562,523			23,519		1.68	%			5,408,884			22,087		1.66	%
Non-interest-bearing liabilities:
Demand checking accounts		1,134,314									1,142,600									1,026,970
Other non-interest-bearing liabilities		232,113									213,579									111,174
Total liabilities		7,019,688									6,918,702									6,547,028
Stockholders’ equity		946,138									941,891									886,639
Noncontrolling interest in subsidiary		—									—									371
Total liabilities and equity	$	7,965,826								$	7,860,593								$	7,434,038
Net interest income (tax-equivalent basis) /Interest-rate spread (4)					61,840		2.91	%						64,074		3.05	%						63,170		3.18	%
Less adjustment of tax-exempt income					128									143									171
Net interest income				$	61,712								$	63,931								$	62,999
Net interest margin (5)							3.31	%								3.43	%								3.64	%
(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   March 31,
								2020				2019
Reconciliation Table - Non-GAAP Financial Information							(Dollars in Thousands Except Share Data)
Net (loss) income attributable to Brookline Bancorp, Inc.							$	(17,276	)		$	22,467
Less:
Security gains (after-tax)								964				103
Operating earnings							$	(18,240	)		$	22,364
Operating earnings per common share:
Basic							$	(0.23	)		$	0.28
Diluted								(0.23	)			0.28
Weighted average common shares outstanding during the period:
Basic								79,481,462				79,658,583
Diluted								79,665,774				79,843,578
Return on average assets *								(0.87	)%			1.21	%
Less:
Security gains (after-tax) *								0.05	%			0.01	%
Operating return on average assets *								(0.92	)%			1.20	%
Return on average tangible assets *								(0.89	)%			1.24	%
Less:
Security gains (after-tax) *								0.05	%			0.01	%
Operating return on average tangible assets *								(0.94	)%			1.23	%
Return on average stockholders' equity *								(7.30	)%			10.14	%
Less:
Security gains (after-tax) *								0.41	%			0.05	%
Operating return on average stockholders' equity *								(7.71	)%			10.09	%
Return on average tangible stockholders' equity *								(8.84	)%			12.48	%
Less:
Security gains (after-tax) *								0.49	%			0.06	%
Operating return on average tangible stockholders' equity *								(9.33	)%			12.42	%
* Ratios at and for the three months ended are annualized.

	At and for the Three Months Ended
	March 31, 2020				December 31, 2019				September 30, 2019				June 30, 2019				March 31, 2019
	(Dollars in Thousands)
Net (loss) income, as reported	$	(17,276	)		$	22,183			$	22,596			$	20,471			$	22,467
Average total assets	$	7,965,826			$	7,860,593			$	7,746,492			$	7,571,396			$	7,434,038
Less: Average goodwill and average identified intangible assets, net		164,701				165,071				165,493				165,914				166,327
Average tangible assets	$	7,801,125			$	7,695,522			$	7,580,999			$	7,405,482			$	7,267,711
Return on average tangible assets (annualized)		(0.89	)%			1.15	%			1.19	%			1.11	%			1.24	%
Average total stockholders’ equity	$	946,138			$	941,891			$	928,063			$	911,824			$	886,639
Less: Average goodwill and average identified intangible assets, net		164,701				165,071				165,493				165,914				166,327
Average tangible stockholders’ equity	$	781,437			$	776,820			$	762,570			$	745,910			$	720,312
Return on average tangible stockholders’ equity (annualized)		(8.84	)%			11.42	%			11.85	%			10.98	%			12.48	%
Brookline Bancorp, Inc. stockholders’ equity	$	912,568			$	945,606			$	932,311			$	918,468			$	900,572
Less:
Goodwill		160,427				160,427				160,427				160,427				160,427
Identified intangible assets, net		4,087				4,423				4,843				5,264				5,684
Tangible stockholders' equity	$	748,054			$	780,756			$	767,041			$	752,777			$	734,461
Total assets	$	8,461,591			$	7,856,853			$	7,878,436			$	7,636,980			$	7,519,130
Less:
Goodwill		160,427				160,427				160,427				160,427				160,427
Identified intangible assets, net		4,087				4,423				4,843				5,264				5,684
Tangible assets	$	8,297,077			$	7,692,003			$	7,713,166			$	7,471,289			$	7,353,019
Tangible stockholders’ equity to tangible assets		9.02	%			10.15	%			9.94	%			10.08	%			9.99	%
Tangible stockholders' equity	$	748,054			$	780,756			$	767,041			$	752,777			$	734,461
Number of common shares issued		85,177,172				85,177,172				85,177,172				85,177,172				85,177,172
Less:
Treasury shares		5,862,811				5,003,127				5,003,127				5,025,764				5,020,025
Unallocated ESOP shares		72,441				79,548				92,337				98,208				104,079
Unvested restricted shares		395,085				406,450				407,784				377,122				390,636
Number of common shares outstanding		78,846,835				79,688,047				79,673,924				79,676,078				79,662,432
Tangible book value per common share	$	9.49			$	9.80			$	9.63			$	9.45			$	9.22