Net Income of $26.7 million, EPS of $0.34

Announces $0.115 Dividend per Share

Announces $10.0 million Stock Buyback Program

BOSTON, Jan. 27, 2021 (GLOBE NEWSWIRE) -- Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced net income of $26.7 million, or $0.34 per basic and diluted share, for the fourth quarter of 2020, compared to $18.7 million, or $0.24 per basic and diluted share, for the third quarter of 2020, and $22.2 million, or $0.28 per basic and diluted share, for the fourth quarter of 2019.

For the year ended December 31, 2020, the Company reported net income of $47.6 million, or $0.60 per basic and diluted share. This compared to $87.7 million, or $1.10 per basic and diluted share, for the year ended December 31, 2019.

Paul Perrault, President and Chief Executive Officer, commented on the Company’s performance in 2020, “This past year was challenging in many respects, and I would like to recognize our employees for their hard work. Given the challenges of this past year, I am very pleased with our financial performance and this quarter’s earnings report. We are cautiously optimistic and think that we are well positioned as we look forward to what we hope is a more positive environment in 2021, but remain diligent and prudent as we continue to navigate our way through these challenging times.”

On December 27, 2020, President Trump signed the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (the “Economic Aid Act”) which, among other items provides for a third round of Paycheck Protection Program (“PPP”) loans. The Company’s banks are participating in the PPP program and as of January 27, 2021, the Company has not funded any third round PPP loans. In the first two rounds of PPP funding, the Company funded 2,922 PPP loans totaling $581.7 million as of August 8, 2020 when the program closed, of which $489.2 million remains outstanding, net of deferred fees and costs at December 31, 2020.

BALANCE SHEET

Total assets at December 31, 2020 decreased $57.8 million to $8.94 billion from $9.00 billion at September 30, 2020, and increased $1.09 billion from $7.86 billion at December 31, 2019. At December 31, 2020, total loans and leases were $7.27 billion, representing a decrease of $126.8 million from September 30, 2020, primarily driven by PPP Forgiveness funds received and decrease of $79.2 million in PPP originations, and an increase of $531.7 million from December 31, 2019, primarily driven by PPP loan activity.

Total investment securities at December 31, 2020 decreased $38.0 million to $746.3 million from $784.4 million at September 30, 2020, and increased $157.0 million from $589.4 million at December 31, 2019. Total cash and cash equivalents at December 31, 2020 increased $117.6 million to $434.9 million from $317.3 million at September 30, 2020, and increased $357.1 million from $77.8 million at December 31, 2019. As of December 31, 2020, total investment securities and total cash and cash equivalents represented 13.2 percent of total assets as compared to 12.2 percent and 8.5 percent as of September 30, 2020 and December 31, 2019, respectively.

Total deposits at December 31, 2020 increased $118.2 million to $6.91 billion from $6.79 billion at September 30, 2020 and increased $1.08 billion from $5.83 billion at December 31, 2019.

Total borrowed funds at December 31, 2020 decreased $184.8 million to $820.2 million from $1.01 billion at September 30, 2020 and decreased $82.5 million from $902.7 million at December 31, 2019.

The ratio of stockholders’ equity to total assets was 10.53 percent at December 31, 2020, as compared to 10.39 percent at September 30, 2020, and 12.04 percent at December 31, 2019. The ratio of tangible stockholders’ equity to tangible assets (non-GAAP) was 8.86 percent at December 31, 2020, as compared to 8.73 percent at September 30, 2020, and 10.15 percent at December 31, 2019. Tangible book value per share (non-GAAP) increased $0.19 from $9.77 at September 30, 2020 to $9.96 at December 31, 2020, compared to $9.80 at December 31, 2019.

NET INTEREST INCOME

Net interest income increased $2.3 million to $68.2 million during the fourth quarter of 2020 from $65.9 million for the quarter ended September 30, 2020. The net interest margin increased 15 basis points to 3.23 percent for the three months ended December 31, 2020 from 3.08 percent for the three months ended September 30, 2020.

NON-INTEREST INCOME

Non-interest income for the quarter ended December 31, 2020 decreased $0.7 million to $4.2 million from $4.9 million for the quarter ended September 30, 2020. The decrease was primarily driven by decreases of $0.6 million in gain on sales of loans and leases and $0.4 million in loan level derivative income, net, partially offset by increases of $0.2 million in loan fees and $0.1 million in other non-interest income.

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 recorded a negative provision for credit losses of $2.1 million for the quarter ended December 31, 2020, compared to a provision of $4.5 million for the quarter ended September 30, 2020. The negative provision results from, exclusive of PPP loans, a reduction in the quarter of both outstanding loans and commitments; the charge-off of a specifically reserved loan; and a modestly improved economic outlook in the models used for the ACL.

Total net charge-offs for the fourth quarter of 2020 were $4.4 million compared to $5.0 million in the third quarter of 2020. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis decreased to 24 basis points for the fourth quarter of 2020 from 27 basis points for the third quarter of 2020.

The allowance for loan and lease losses represented 1.57 percent of total loans and leases at December 31, 2020, compared to 1.62 percent at September 30, 2020, and 0.91 percent at December 31, 2019. Excluding PPP loans, the allowance for loan and lease losses represents 1.69 percent coverage at December 31, 2020 compared to 1.76 percent at September 30, 2020.

ASSET QUALITY

The ratio of total nonperforming loans and leases to total loans and leases was 0.53 percent at December 31, 2020 as compared to 0.51 percent at September 30, 2020. Nonperforming loans and leases increased $0.4 million to $38.4 million at December 31, 2020 from $38.0 million at September 30, 2020. The ratio of nonperforming assets to total assets was 0.50 percent at December 31, 2020 as compared to 0.44 percent at September 30, 2020. Nonperforming assets increased $5.6 million to $45.0 million at December 31, 2020 from $39.4 million at September 30, 2020.

From March 1, 2020 through the earlier of January 1, 2022 or 60 days after the termination date of the national emergency declared by the President on March 13, 2020 concerning the COVID-19 outbreak (the “national emergency”), a financial institution may elect to suspend the requirements under accounting principles generally accepted in the U.S. for loan modifications related to the COVID-19 pandemic that would otherwise be categorized as a troubled debt restructured, including impairment accounting. This troubled debt restructuring relief applies for the term of the loan modification that occurs during the applicable period for a loan that was not more than 30 days past due as of December 31, 2019. Financial institutions are required to maintain records of the volume of loans involved in modifications to which troubled debt restructuring relief is applicable. As of December 31, 2020, approximately 92 percent of loans granted an initial loan payment deferral have returned to payment status and 298 credits totaling $90 million or 1.2 percent of total loans outstanding have been modified.

NON-INTEREST EXPENSE

Non-interest expense for the quarter ended December 31, 2020 decreased $0.9 million to $40.0 million from $40.9 million for the quarter ended September 30, 2020. The decrease was primarily driven by decreases of $1.0 million in compensation and employee benefits and $0.2 million in other non-interest expense, partially offset by an increase of $0.3 million in FDIC insurance.

PROVISION FOR INCOME TAXES

The effective tax rate was 22.7 percent and 23.3 percent for the three and twelve months ended December 31, 2020, respectively.

RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

The annualized return on average assets increased to 1.20 percent during the fourth quarter of 2020 compared to 0.83 percent for the third quarter of 2020; and was 0.55 percent for the year ended December 31, 2020, compared to 1.15 percent for the year ended December 31, 2019.

The annualized return on average tangible stockholders' equity increased to 13.79 percent during the fourth quarter of 2020 compared to 9.70 percent for the third quarter of 2020; and was 6.17 percent for the year ended December 31, 2020 compared to 11.67 percent for the year ended December 31, 2019.

DIVIDEND DECLARED

The Company’s Board approved a dividend of $0.115 per share for the quarter ended December 31, 2020. The dividend will be paid on February 26, 2021 to stockholders of record on February 12, 2021.

STOCK REPURCHASE

On December 4, 2019, the Board of Directors (the "Board") approved a stock repurchase program (the "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. On March 9, 2020, the Board approved an increase in the repurchase amount of $10.0 million bringing the total authorized amount to $20.0 million. Effective March 24, 2020, the Company suspended the Program. On October 28, 2020, the Board authorized the resumption of the Program. As of December 31, 2020, the Company has repurchased 1,715,730 shares at a weighted average price of $11.66.

On January 27, 2021, 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 commencing on February 1, 2021 and ending on December 31, 2021.

CONFERENCE CALL

The Company will conduct a conference call/webcast at 1:30 PM Eastern Daylight Time on Thursday, January 28, 2021 to discuss the results for the quarter, business highlights and outlook. A copy of the Earnings Presentation is available on the Company’s website, www.brooklinebancorp.com. To listen to the call and view the Company’s Earnings Presentation, please join the call via https://services.choruscall.com/links/brkl210128.html. To listen to the call without access to the slides, please dial 877-504-4120 (United States) or 412-902-6650 (international) and ask for the Brookline Bancorp, Inc. call. A recording of the call will be available for one week following the call on the Company’s website under “Investor Relations” or by dialing 877-344-7529 (United States) or 412-317-0088 (internationally) and entering the passcode: 10151088.

ABOUT BROOKLINE BANCORP, INC.

Brookline Bancorp, Inc., a bank holding company with $8.9 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 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 employment levels, general business and economic conditions on a national basis and in the local markets in which the Company and its banking subsidiaries operate; changes in consumer behavior due to changing political business and economic conditions or legislative or regulatory initiatives; the possibility that future credit losses may be higher than currently expected; reputational risk relating to the Company’s participation in the Paycheck Protection Program and other pandemic-related legislative and regulatory initiatives and programs; and turbulence in capital and debt markets. Forward-looking statements involve risks and uncertainties which are difficult to predict. The Company’s actual results could differ materially from those projected in the forward-looking statements as a result of, among others, the risks outlined in the Company’s Annual Report on Form 10-K, as updated by its Quarterly Reports on Form 10-Q and other filings submitted to the 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, 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:

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, 2020			September 30, 2020			June 30, 2020			March 31, 2020			December 31, 2019			December 31, 2020			December 31, 2019
	(Dollars In Thousands Except per Share Data)
Earnings Data:
Net interest income	$	68,225		$	65,938		$	64,288		$	61,712		$	63,931		$	260,163		$	253,300
(Credit) provision for credit losses		(2,103	)		4,528			5,347			54,114			3,602			61,886			9,583
Non-interest income		4,219			4,862			6,235			9,328			7,756			24,644			29,793
Non-interest expense		40,038			40,947			39,109			40,748			38,815			160,844			157,481
Income (loss) before provision for income taxes		34,509			25,325			26,067			(23,822	)		29,270			62,077			116,029
Net income (loss) attributable to Brookline Bancorp, Inc.		26,663			18,679			19,571			(17,276	)		22,183			47,635			87,717

Performance Ratios:
Net interest margin (1)		3.23	%		3.08	%		3.09	%		3.31	%		3.43	%		3.17	%		3.51	%
Interest-rate spread (1)		3.03	%		2.85	%		2.75	%		2.91	%		3.05	%		2.88	%		3.10	%
Return on average assets (annualized)		1.20	%		0.83	%		0.88	%		(0.87	)%		1.13	%		0.55	%		1.15	%
Return on average tangible assets (annualized) (non-GAAP)		1.22	%		0.84	%		0.90	%		(0.89	)%		1.15	%		0.56	%		1.17	%
Return on average stockholders' equity (annualized)		11.38	%		7.99	%		8.45	%		(7.30	)%		9.42	%		5.09	%		9.56	%
Return on average tangible stockholders' equity (annualized) (non-GAAP)		13.79	%		9.70	%		10.28	%		(8.84	)%		11.42	%		6.17	%		11.67	%
Efficiency ratio (2)		55.27	%		57.83	%		55.46	%		57.36	%		54.15	%		56.47	%		55.63	%

Per Common Share Data:
Net income (loss) — Basic	$	0.34		$	0.24		$	0.25		$	(0.22	)	$	0.28		$	0.60		$	1.10
Net income (loss) — Diluted		0.34			0.24			0.25			(0.22	)		0.28			0.60			1.10
Cash dividends declared		0.115			0.115			0.115			0.115			0.115			0.460			0.450
Book value per share (end of period)		12.05			11.84			11.75			11.57			11.87			12.05			11.87
Tangible book value per share (end of period) (non-GAAP)		9.96			9.77			9.67			9.49			9.80			9.96			9.80
Stock price (end of period)		12.04			8.65			10.08			11.28			16.46			12.04			16.46

Balance Sheet:
Total assets	$	8,942,424		$	9,000,192		$	9,069,667		$	8,461,591		$	7,856,853		$	8,942,424		$	7,856,853
Total loans and leases		7,269,553			7,396,358			7,407,697			6,822,527			6,737,816			7,269,553			6,737,816
Total deposits		6,910,696			6,792,523			6,440,233			5,889,938			5,830,072			6,910,696			5,830,072
Brookline Bancorp, Inc. stockholders’ equity		941,778			935,558			926,413			912,568			945,606			941,778			945,606

Asset Quality:
Nonperforming assets	$	44,963		$	39,365		$	42,754		$	41,122		$	22,092		$	44,963		$	22,092
Nonperforming assets as a percentage of total assets		0.50	%		0.44	%		0.47	%		0.49	%		0.28	%		0.50	%		0.28	%
Allowance for loan and lease losses	$	114,379		$	119,971		$	119,553		$	113,181		$	61,082		$	114,379		$	61,082
Allowance for loan and lease losses as a percentage of total loans and leases		1.57	%		1.62	%		1.61	%		1.66	%		0.91	%		1.57	%		0.91	%
Net loan and lease charge-offs	$	4,381		$	4,963		$	1,383		$	2,234		$	1,622		$	12,961		$	7,171
Net loan and lease charge-offs as a percentage of average loans and leases (annualized)		0.24	%		0.27	%		0.08	%		0.13	%		0.10	%		0.18	%		0.11	%

Capital Ratios:
Stockholders’ equity to total assets		10.53	%		10.39	%		10.21	%		10.78	%		12.04	%		10.53	%		12.04	%
Tangible stockholders’ equity to tangible assets (non-GAAP)		8.86	%		8.73	%		8.56	%		9.02	%		10.15	%		8.86	%		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, 2020			September 30, 2020			June 30, 2020			March 31, 2020			December 31, 2019
*ASSETS*	(In Thousands Except Share Data)
Cash and due from banks	$	36,069		$	33,818		$	38,522		$	86,996		$	33,589
Short-term investments		398,848			283,515			216,394			253,772			44,201
Total cash and cash equivalents		434,917			317,333			254,916			340,768			77,790
Investment securities available-for-sale		745,822			783,867			854,505			761,539			498,995
Investment securities held-to-maturity		-			-			-			-			86,780
Equity securities held-for-trading		526			525			1,992			2,558			3,581
Total investment securities		746,348			784,392			856,497			764,097			589,356
Loans and leases:
Commercial real estate loans		3,823,826			3,835,372			3,837,703			3,762,158			3,669,222
Commercial loans and leases		2,274,899			2,354,613			2,361,463			1,826,866			1,838,748
Consumer loans		1,170,828			1,206,373			1,208,531			1,233,503			1,229,846
Total loans and leases		7,269,553			7,396,358			7,407,697			6,822,527			6,737,816
Allowance for loan and lease losses		(114,379	)		(119,971	)		(119,553	)		(113,181	)		(61,082	)
Net loans and leases		7,155,174			7,276,387			7,288,144			6,709,346			6,676,734
Restricted equity securities		49,786			61,715			71,638			68,472			53,818
Premises and equipment, net of accumulated depreciation		71,568			72,441			73,127			73,786			74,350
Right-of-use asset operating leases		24,143			23,492			24,343			24,789			24,876
Deferred tax asset		40,129			42,269			42,683			38,141			25,017
Goodwill		160,427			160,427			160,427			160,427			160,427
Identified intangible assets, net of accumulated amortization		3,152			3,464			3,775			4,087			4,423
Other real estate owned and repossessed assets		6,515			1,413			1,454			2,038			2,631
Other assets		250,265			256,859			292,663			275,640			167,431
Total assets	$	8,942,424		$	9,000,192		$	9,069,667		$	8,461,591		$	7,856,853
*LIABILITIES AND STOCKHOLDERS' EQUITY*
Deposits:
Demand checking accounts	$	1,592,205		$	1,550,267		$	1,603,037		$	1,175,329		$	1,141,578
NOW accounts		513,948			459,902			417,622			361,854			371,380
Savings accounts		701,659			716,630			657,758			653,026			613,467
Money market accounts		2,018,977			1,878,258			1,809,868			1,676,092			1,682,005
Certificate of deposit accounts		1,389,998			1,492,913			1,601,768			1,669,509			1,671,738
Brokered deposit accounts		693,909			694,553			350,180			354,128			349,904
Total deposits		6,910,696			6,792,523			6,440,233			5,889,938			5,830,072
Borrowed funds:
Advances from the FHLBB		648,849			841,169			1,267,570			1,137,431			758,469
Subordinated debentures and notes		83,746			83,707			83,668			83,630			83,591
Other borrowed funds		87,652			80,169			55,431			70,743			60,689
Total borrowed funds		820,247			1,005,045			1,406,669			1,291,804			902,749
Operating lease liabilities		24,143			23,492			24,343			24,789			24,876
Mortgagors’ escrow accounts		5,901			6,429			6,467			7,441			7,232
Reserve for unfunded credits		13,071			13,964			14,816			17,222			1,880
Accrued expenses and other liabilities		226,588			223,181			250,726			317,829			144,438
Total liabilities		8,000,646			8,064,634			8,143,254			7,549,023			6,911,247
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		737,178			736,294			738,155			737,422			736,601
Retained earnings, partially restricted		264,892			247,336			237,808			227,359			265,376
Accumulated other comprehensive income		16,490			18,782			19,538			16,947			2,283
Treasury stock, at cost;
6,525,783 shares, 5,629,854 shares, 5,859,708 shares, 5,862,811 shares, and 5,003,127 shares, respectively		(77,343	)		(67,376	)		(69,572	)		(69,617	)		(59,073	)
Unallocated common stock held by the Employee Stock Ownership Plan;
51,114 shares, 58,227 shares, 65,334 shares, 72,441 shares, and 79,548 shares, respectively		(291	)		(330	)		(368	)		(395	)		(433	)
Total stockholders' equity		941,778			935,558			926,413			912,568			945,606
Total liabilities and stockholders' equity	$	8,942,424		$	9,000,192		$	9,069,667		$	8,461,591		$	7,856,853

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
	Three Months Ended
	December 31, 2020			September 30, 2020		June 30, 2020		March 31, 2020			December 31, 2019
	(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases	$	76,583		$	76,240	$	77,416	$	79,559		$	83,309
Debt securities		3,335			3,746		3,701		2,976			2,910
Marketable and restricted equity securities		490			672		908		778			813
Short-term investments		59			46		99		209			418
Total interest and dividend income		80,467			80,704		82,124		83,522			87,450
Interest expense:
Deposits		8,825			10,583		12,778		16,240			17,655
Borrowed funds		3,417			4,183		5,058		5,570			5,864
Total interest expense		12,242			14,766		17,836		21,810			23,519
Net interest income		68,225			65,938		64,288		61,712			63,931
(Credit) provision for credit losses		(2,103	)		4,528		5,347		54,114			3,602
Net interest income after (credit) provision for credit losses		70,328			61,410		58,941		7,598			60,329
Non-interest income:
Deposit fees		2,358			2,305		1,929		2,458			2,710
Loan fees		588			397		513		550			567
Loan level derivative income, net		145			527		1,440		2,156			2,494
Gain on investment securities, net		-			54		586		1,330			133
Gain on sales of loans and leases held-for-sale		67			632		299		120			309
Other		1,061			947		1,468		2,714			1,543
Total non-interest income		4,219			4,862		6,235		9,328			7,756
Non-interest expense:
Compensation and employee benefits		25,054			26,092		24,619		25,219			23,987
Occupancy		3,806			3,802		3,825		3,953			4,102
Equipment and data processing		4,193			4,293		4,155		4,703			4,601
Professional services		1,338			1,112		1,056		1,651			1,120
FDIC insurance		1,630			1,363		858		378			53
Advertising and marketing		1,010			1,024		1,017		1,075			828
Amortization of identified intangible assets		312			312		311		336			420
Other		2,695			2,949		3,268		3,433			3,704
Total non-interest expense		40,038			40,947		39,109		40,748			38,815
Income (loss) before provision for income taxes		34,509			25,325		26,067		(23,822	)		29,270
Provision (benefit) for income taxes		7,846			6,646		6,496		(6,546	)		7,087
Net income (loss) attributable to Brookline Bancorp, Inc.	$	26,663		$	18,679	$	19,571	$	(17,276	)	$	22,183
Earnings per common share:
Basic		0.34			0.24		0.25		(0.22	)		0.28
Diluted		0.34			0.24		0.25		(0.22	)		0.28
Weighted average common shares outstanding during the period:
Basic		78,533,351			78,948,139		78,849,282		79,481,462			79,682,724
Diluted		78,680,873			79,055,901		79,015,274		79,665,774			79,845,447
Dividends paid per common share	$	0.115		$	0.115	$	0.115	$	0.115		$	0.115

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)

	Twelve Months Ended December 31,
		2020		2019
	(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases	$	309,798	$	330,345
Debt securities		13,758		12,281
Marketable and restricted equity securities		2,848		3,477
Short-term investments		413		1,523
Total interest and dividend income		326,817		347,626
Interest expense:
Deposits		48,426		69,615
Borrowed funds		18,228		24,711
Total interest expense		66,654		94,326
Net interest income		260,163		253,300
Provision for credit losses		61,886		9,583
Net interest income after provision for credit losses		198,277		243,717
Non-interest income:
Deposit fees		9,050		10,623
Loan fees		2,048		2,097
Loan level derivative income, net		4,268		8,262
Gain on investment securities, net		1,970		508
Gain on sales of loans and leases held-for-sale		1,118		1,709
Other		6,190		6,594
Total non-interest income		24,644		29,793
Non-interest expense:
Compensation and employee benefits		100,985		96,554
Occupancy		15,386		15,696
Equipment and data processing		17,345		18,652
Professional services		5,157		4,366
FDIC insurance		4,229		1,445
Advertising and marketing		4,126		4,044
Amortization of identified intangible assets		1,271		1,663
Merger and restructuring expense		-		1,125
Other		12,345		13,936
Total non-interest expense		160,844		157,481
Income before provision for income taxes		62,077		116,029
Provision for income taxes		14,442		28,269
Net income before noncontrolling interest in subsidiary		47,635		87,760
Less net income attributable to noncontrolling interest in subsidiary		-		43
Net income attributable to Brookline Bancorp, Inc.	$	47,635	$	87,717
Earnings per common share:
Basic	$	0.60	$	1.10
Diluted	$	0.60	$	1.10
Weighted average common shares outstanding during the period:
Basic		78,951,892		79,679,781
Diluted		79,103,289		79,856,921
Dividends paid per common share	$	0.460	$	0.440

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Asset Quality Analysis (Unaudited)
	At and for the Three Months Ended
	December 31, 2020			September 30, 2020			June 30, 2020			March 31, 2020			December 31, 2019
	(Dollars in Thousands)
NONPERFORMING ASSETS:
Loans and leases accounted for on a nonaccrual basis:
Commercial real estate mortgage	$	3,300		$	10,841		$	10,139		$	10,937		$	2,845
Multi-family mortgage		-			-			-			85			84
Construction		3,853			-			-			-			-
Total commercial real estate loans		7,153			10,841			10,139			11,022			2,929

Commercial		7,702			7,751			12,427			12,991			4,909
Equipment financing		16,757			13,372			13,100			10,356			9,822
Condominium association		112			117			190			203			151
Total commercial loans and leases		24,571			21,240			25,717			23,550			14,882

Residential mortgage		5,587			4,634			4,157			3,446			753
Home equity		1,136			1,235			1,278			1,059			896
Other consumer		1			2			9			7			1
Total consumer loans		6,724			5,871			5,444			4,512			1,650

Total nonaccrual loans and leases		38,448			37,952			41,300			39,084			19,461

Other real estate owned		5,415			-			-			-			-
Other repossessed assets		1,100			1,413			1,454			2,038			2,631
Total nonperforming assets	$	44,963		$	39,365		$	42,754		$	41,122		$	22,092

Loans and leases past due greater than 90 days and still accruing	$	11,975		$	1,180		$	1,974		$	1,045		$	10,109

Troubled debt restructurings on accrual		11,483			11,309			10,172			16,480			17,076
Troubled debt restructurings on nonaccrual		7,476			5,742			5,972			5,819			6,104
Total troubled debt restructurings	$	18,959		$	17,051		$	16,144		$	22,299		$	23,180

Nonperforming loans and leases as a percentage of total loans and leases		0.53	%		0.51	%		0.56	%		0.57	%		0.29	%
Nonperforming assets as a percentage of total assets		0.50	%		0.44	%		0.47	%		0.49	%		0.28	%

PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:
Allowance for loan and lease losses at beginning of period	$	119,971		$	119,553		$	113,181		$	61,082		$	59,135
CECL adjustment to retained earnings		-			-			-			6,632			-
Charge-offs		(4,810	)		(5,511	)		(1,803	)		(2,539	)		(1,894	)
Recoveries		429			548			420			305			272
Net charge-offs		(4,381	)		(4,963	)		(1,383	)		(2,234	)		(1,622	)
(Credit) provision for loan and lease losses excluding unfunded commitments *		(1,211	)		5,381			7,755			47,701			3,569
Allowance for loan and lease losses at end of period	$	114,379		$	119,971		$	119,553		$	113,181		$	61,082

Allowance for loan and lease losses as a percentage of total loans and leases		1.57	%		1.62	%		1.61	%		1.66	%		0.91	%

NET CHARGE-OFFS:
Commercial real estate loans	$	3,444		$	70		$	(94	)	$	-		$	-
Commercial loans and leases		1,011			4,917			1,498			2,280			1,589
Consumer loans		(74	)		(24	)		(21	)		(46	)		33
Total net charge-offs	$	4,381		$	4,963		$	1,383		$	2,234		$	1,622

Net loan and lease charge-offs as a percentage of average loans and leases (annualized)		0.24	%		0.27	%		0.08	%		0.13	%		0.10	%

*provision for loan and lease losses does not include (credit) provision of $(0.9) million, $(0.9) million, $2.4 million and $6.4 million for credit losses on unfunded commitments during the three months ended December 31, 2020, September 30, 2020, June 30, 2020 and March 31, 2020, respectively.

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Average Yields / Costs (Unaudited)
	Three Months Ended
	December 31, 2020						September 30, 2020						December 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)	$	770,414	$	3,334	1.73	%	$	851,608	$	3,746	1.76	%	$	567,037	$	2,957	2.09	%
Marketable and restricted equity securities (2)		51,469		491	3.81	%		66,154		670	4.06	%		59,763		823	5.51	%
Short-term investments		223,665		59	0.10	%		192,446		46	0.10	%		93,997		418	1.78	%
Total investments		1,045,548		3,884	1.49	%		1,110,208		4,462	1.61	%		720,797		4,198	2.33	%
Loans and Leases:
Commercial real estate loans (3)		3,833,172		35,526	3.63	%		3,831,826		35,615	3.64	%		3,605,169		40,976	4.45	%
Commercial loans (3)		1,260,883		11,936	3.71	%		1,281,202		10,677	3.27	%		826,116		10,066	4.78	%
Equipment financing (3)		1,086,855		18,626	6.86	%		1,089,058		19,018	6.99	%		1,037,431		19,271	7.43	%
Residential mortgage loans (3)		803,884		7,530	3.75	%		814,559		7,860	3.86	%		804,672		8,402	4.18	%
Other consumer loans (3)		385,818		3,020	3.10	%		395,990		3,127	3.13	%		417,950		4,680	4.43	%
Total loans and leases		7,370,612		76,638	4.16	%		7,412,635		76,297	4.12	%		6,691,338		83,395	4.99	%
Total interest-earning assets		8,416,160		80,522	3.83	%		8,522,843		80,759	3.79	%		7,412,135		87,593	4.73	%
Non-interest-earning assets		458,307						495,829						448,458
Total assets	$	8,874,467					$	9,018,672					$	7,860,593

Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts	$	451,014		126	0.11	%	$	427,009		128	0.12	%	$	344,036		115	0.13	%
Savings accounts		701,378		245	0.14	%		688,223		258	0.15	%		604,276		746	0.49	%
Money market accounts		1,947,686		1,546	0.32	%		1,855,803		1,658	0.36	%		1,685,885		4,947	1.16	%
Certificates of deposit		1,452,867		5,718	1.57	%		1,536,969		7,022	1.82	%		1,681,844		9,725	2.29	%
Brokered deposit accounts		746,281		1,190	0.63	%		562,112		1,517	1.07	%		344,909		2,122	2.44	%
Total interest-bearing deposits		5,299,226		8,825	0.66	%		5,070,116		10,583	0.83	%		4,660,950		17,655	1.50	%
Borrowings:
Advances from the FHLBB		619,844		2,118	1.34	%		944,865		2,876	1.19	%		753,460		4,407	2.29	%
Subordinated debentures and notes		83,725		1,245	5.95	%		83,687		1,246	5.96	%		83,570		1,293	6.19	%
Other borrowed funds		81,320		54	0.26	%		118,969		61	0.21	%		64,543		164	1.01	%
Total borrowings		784,889		3,417	1.70	%		1,147,521		4,183	1.43	%		901,573		5,864	2.55	%
Total interest-bearing liabilities		6,084,115		12,242	0.80	%		6,217,637		14,766	0.94	%		5,562,523		23,519	1.68	%
Non-interest-bearing liabilities:
Demand checking accounts		1,587,618						1,569,411						1,142,600
Other non-interest-bearing liabilities		265,440						296,992						213,579
Total liabilities		7,937,173						8,084,040						6,918,702
Stockholders’ equity		937,294						934,632						941,891
Total liabilities and equity	$	8,874,467					$	9,018,672					$	7,860,593
Net interest income (tax-equivalent basis) /Interest-rate spread (4)				68,280	3.03	%				65,993	2.85	%				64,074	3.05	%
Less adjustment of tax-exempt income				55						55						143
Net interest income			$	68,225					$	65,938					$	63,931
Net interest margin (5)					3.23	%					3.08	%					3.43	%

(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, 2020						December 31, 2019
	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)	$	750,689	$	13,823	1.84	%	$	585,360	$	12,483	2.13	%
Marketable and restricted equity securities (2)		61,873		2,862	4.63	%		59,751		3,516	5.88	%
Short-term investments		186,617		413	0.22	%		71,090		1,523	2.14	%
Total investments		999,179		17,098	1.71	%		716,201		17,522	2.45	%
Loans and Leases:
Commercial real estate loans (3)		3,781,201		148,438	3.86	%		3,492,848		164,082	4.63	%
Commercial loans (3)		1,140,699		41,391	3.57	%		817,347		39,839	4.81	%
Equipment financing (3)		1,074,561		75,563	7.03	%		1,012,698		74,066	7.31	%
Residential mortgage loans (3)		810,855		31,392	3.87	%		783,556		32,926	4.20	%
Other consumer loans (3)		402,672		13,255	3.28	%		414,730		19,835	4.78	%
Total loans and leases		7,209,988		310,039	4.30	%		6,521,179		330,748	5.07	%
Total interest-earning assets		8,209,167		327,137	3.99	%		7,237,380		348,270	4.81	%
Non-interest-earning assets		474,402						417,254
Total assets	$	8,683,569					$	7,654,634

Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts	$	408,374		484	0.12	%	$	339,275		436	0.13	%
Savings accounts		670,217		1,503	0.22	%		608,022		2,900	0.48	%
Money market accounts		1,817,085		9,519	0.52	%		1,682,676		21,206	1.26	%
Certificates of deposit		1,577,104		30,355	1.92	%		1,611,389		36,326	2.25	%
Brokered deposit accounts		512,803		6,565	1.28	%		344,961		8,747	2.54	%
Total interest-bearing deposits		4,985,583		48,426	0.97	%		4,586,323		69,615	1.52	%
Borrowings:
Advances from the FHLBB		859,389		12,842	1.47	%		757,598		18,701	2.43	%
Subordinated debentures and notes		83,667		5,038	6.02	%		83,511		5,206	6.23	%
Other borrowed funds		90,587		348	0.38	%		79,276		804	1.01	%
Total borrowings		1,033,643		18,228	1.73	%		920,385		24,711	2.65	%
Total interest-bearing liabilities		6,019,226		66,654	1.11	%		5,506,708		94,326	1.71	%
Non-interest-bearing liabilities:
Demand checking accounts		1,451,556						1,070,859
Other non-interest-bearing liabilities		276,712						159,690
Total liabilities		7,747,494						6,737,257
Brookline Bancorp, Inc. stockholders’ equity		936,075						917,286
Noncontrolling interest in subsidiary		-						91
Total liabilities and equity	$	8,683,569					$	7,654,634
Net interest income (tax-equivalent basis) /Interest-rate spread (4)				260,483	2.88	%				253,944	3.10	%
Less adjustment of tax-exempt income				320						644
Net interest income			$	260,163					$	253,300
Net interest margin (5)					3.17	%					3.51	%

(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,
											2020			2019			2020			2019
Reconciliation Table - Non-GAAP Financial Information										(Dollars in Thousands Except Share Data)

Net income attributable to Brookline Bancorp, Inc.										$	26,663		$	22,183		$	47,635		$	87,717
Less:
Security gains (after-tax)											-			101			1,511			384
Add:
Merger and restructuring-related expenses (after-tax)											-			-			-			851
Operating earnings										$	26,663		$	22,082		$	46,124		$	88,184

Operating earnings per common share:
Basic										$	0.34		$	0.28		$	0.58		$	1.11
Diluted											0.34			0.28			0.58			1.10

Weighted average common shares outstanding during the period:
Basic											78,533,351			79,682,724			78,951,892			79,679,781
Diluted											78,680,873			79,845,447			79,103,289			79,856,921


Return on average assets *											1.20	%		1.13	%		0.55	%		1.15	%
Less:
Security gains (after-tax) *											-	%		0.01	%		0.02	%		0.01	%
Add:
Merger and restructuring-related expenses (after-tax) *											-	%		-	%		-	%		0.01	%
Operating return on average assets *											1.20	%		1.12	%		0.53	%		1.15	%


Return on average tangible assets *											1.22	%		1.15	%		0.56	%		1.17	%
Less:
Security gains (after-tax) *											-	%		0.01	%		0.02	%		0.01	%
Add:
Merger and restructuring-related expenses (after-tax) *											-	%		-	%		-	%		0.01	%
Operating return on average tangible assets *											1.22	%		1.14	%		0.54	%		1.17	%


Return on average stockholders' equity *											11.38	%		9.42	%		5.09	%		9.56	%
Less:
Security gains (after-tax) *											-	%		0.04	%		0.16	%		0.04	%
Add:
Merger and restructuring-related expenses (after-tax) *											-	%		-	%		-	%		0.09	%
Operating return on average stockholders' equity *											11.38	%		9.38	%		4.93	%		9.61	%


Return on average tangible stockholders' equity *											13.79	%		11.42	%		6.17	%		11.67	%
Less:
Security gains (after-tax) *											-	%		0.05	%		0.20	%		0.05	%
Add:
Merger and restructuring-related expenses (after-tax) *											-	%		-	%		-	%		0.11	%
Operating return on average tangible stockholders' equity *											13.79	%		11.37	%		5.97	%		11.73	%

* Ratios at and for the three months ended are annualized.




BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Non-GAAP Financial Information (Unaudited)
	At and for the Three Months Ended															At and for the Twelve Months Ended
	December 31, 2020			September 30, 2020			June 30, 2020			March 31, 2020			December 31, 2019			December 31, 2020			December 31, 2019
	(Dollars in Thousands)

Net income (loss), as reported	$	26,663		$	18,679		$	19,571		$	(17,276	)	$	22,183		$	47,635		$	87,717

Average total assets	$	8,874,467		$	9,018,672		$	8,869,540		$	7,965,826		$	7,860,593		$	8,683,569		$	7,654,634
Less: Average goodwill and average identified intangible assets, net		163,758			164,072			164,385			164,701			165,071			164,227			165,697
Average tangible assets	$	8,710,709		$	8,854,600		$	8,705,155		$	7,801,125		$	7,695,522		$	8,519,342		$	7,488,937

Return on average tangible assets (annualized)		1.22	%		0.84	%		0.90	%		(0.89	)%		1.15	%		0.56	%		1.17	%

Average total stockholders’ equity	$	937,294		$	934,632		$	926,239		$	946,138		$	941,891		$	936,075		$	917,286
Less: Average goodwill and average identified intangible assets, net		163,758			164,072			164,385			164,701			165,071			164,227			165,697
Average tangible stockholders’ equity	$	773,536		$	770,560		$	761,854		$	781,437		$	776,820		$	771,848		$	751,589

Return on average tangible stockholders’ equity (annualized)		13.79	%		9.70	%		10.28	%		(8.84	)%		11.42	%		6.17	%		11.67	%

Brookline Bancorp, Inc. stockholders’ equity	$	941,778		$	935,558		$	926,413		$	912,568		$	945,606		$	941,778		$	945,606
Less:
Goodwill		160,427			160,427			160,427			160,427			160,427			160,427			160,427
Identified intangible assets, net		3,152			3,464			3,775			4,087			4,423			3,152			4,423
Tangible stockholders' equity	$	778,199		$	771,667		$	762,211		$	748,054		$	780,756		$	778,199		$	780,756

Total assets	$	8,942,424		$	9,000,192		$	9,069,667		$	8,461,591		$	7,856,853		$	8,942,424		$	7,856,853
Less:
Goodwill		160,427			160,427			160,427			160,427			160,427			160,427			160,427
Identified intangible assets, net		3,152			3,464			3,775			4,087			4,423			3,152			4,423
Tangible assets	$	8,778,845		$	8,836,301		$	8,905,465		$	8,297,077		$	7,692,003		$	8,778,845		$	7,692,003

Tangible stockholders’ equity to tangible assets		8.86	%		8.73	%		8.56	%		9.02	%		10.15	%		8.86	%		10.15	%

Tangible stockholders' equity	$	778,199		$	771,667		$	762,211		$	748,054		$	780,756		$	778,199		$	780,756

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		6,525,783			5,629,854			5,859,708			5,862,811			5,003,127			6,525,783			5,003,127
Unallocated ESOP shares		51,114			58,227			65,334			72,441			79,548			51,114			79,548
Unvested restricted shares		458,800			487,318			398,188			395,085			406,450			458,800			406,450
Number of common shares outstanding		78,141,475			79,001,773			78,853,942			78,846,835			79,688,047			78,141,475			79,688,047

Tangible book value per common share	$	9.96		$	9.77		$	9.67		$	9.49		$	9.80		$	9.96		$	9.80

Allowance for loan and lease losses	$	114,379		$	119,971		$	119,553		$	113,181		$	61,082		$	114,379		$	61,082

Total loans and leases	$	7,269,553		$	7,396,358		$	7,407,697		$	6,822,527		$	6,737,816		$	7,269,553		$	6,737,816
Less:
Total PPP loans		489,216			568,383			565,768			-			-			489,216			-
Total loans and leases excluding PPP loans	$	6,780,337		$	6,827,975		$	6,841,929		$	6,822,527		$	6,737,816		$	6,780,337		$	6,737,816

Allowance for loan and lease losses as a percentage of total loans and leases less PPP loans		1.69	%		1.76	%		1.75	%		1.66	%		0.91	%		1.69	%		0.91	%

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