BOSTON, July 28, 2021 (GLOBE NEWSWIRE) -- Brookline Bancorp, Inc. (NASDAQ:BRKL) (the "Company") today announced record net income of $31.6 million, or $0.40 per basic and diluted share, for the second quarter of 2021, compared to net income of $26.5 million, or $0.34 per basic and diluted share, for the first quarter of 2021, and net income of $19.6 million, or $0.25 per basic and diluted share, for the second quarter of 2020.

"We are pleased to report earnings of $31.6 million for the second quarter of 2021 representing $0.40 per share," Paul Perrault, Chairman and Chief Executive Officer of the Company continued, "Brookline Bancorp and its employees continue to execute on our strategy of high performance for both our customers and our stockholders. We look forward to continued success in the second half of 2021."

BALANCE SHEET

Total assets at June 30, 2021 decreased $97.8 million to $8.5 billion from $8.6 billion at March 31, 2021, and decreased $607.7 million from $9.1 billion at June 30, 2020. At June 30, 2021, total loans and leases were $7.0 billion, representing a decrease of $247.3 million from March 31, 2021, and a decrease of $387.4 million from June 30, 2020.

The Company funded a total of 4,700 of SBA Paycheck Protection Program ("PPP") loans in the aggregate amount of $872.1 million. As of June 30, 2021, $348.4 million in PPP loans remain outstanding, net of deferred fees and costs of $10.3 million. Excluding PPP loan activity, the core loan portfolio grew $9.1 million in the quarter compared to a decline of $117.6 million in the first quarter.

Total investment securities at June 30, 2021 decreased $36.3 million to $694.2 million from $730.4 million at March 31, 2021, and decreased $162.3 million from $856.5 million at June 30, 2020. Total cash and cash equivalents at June 30, 2021 increased $189.5 million to $320.4 million from $130.9 million at March 31, 2021, and increased $65.5 million from $254.9 million at June 30, 2020. As of June 30, 2021, total investment securities and total cash and cash equivalents represented 12.0 percent of total assets as compared to 10.1 percent and 12.3 percent as of March 31, 2021 and June 30, 2020, respectively.

Total deposits at June 30, 2021 increased $27.9 million to $6.89 billion from $6.87 billion at March 31, 2021 and increased $454.5 million from $6.4 billion at June 30, 2020.

Total borrowed funds at June 30, 2021 decreased $183.0 million to $363.0 million from $546.0 million at March 31, 2021 and decreased $1.0 billion from $1.4 billion at June 30, 2020.

The ratio of stockholders' equity to total assets was 11.49 percent at June 30, 2021, as compared to 11.04 percent at March 31, 2021, and 10.21 percent at June 30, 2020. The ratio of tangible stockholders' equity to tangible assets (non-GAAP) was 9.75 percent at June 30, 2021, as compared to 9.31 percent at March 31, 2021, and 8.56 percent at June 30, 2020. Tangible book value per share (non-GAAP) increased $0.34 from $10.01 at March 31, 2021 to $10.35 at June 30, 2021, compared to $9.67 at June 30, 2020.

NET INTEREST INCOME

Net interest income increased $2.0 million to $71.1 million for the second quarter of 2021 from $69.1 million at the quarter ended March 31, 2021. The net interest margin increased 13 basis points to 3.52 percent for the three months ended June 30, 2021 from 3.39 percent for the three months ended March 31, 2021.

NON-INTEREST INCOME

Total non-interest income for the quarter ended June 30, 2021 increased $1.1 million to $5.9 million from $4.8 million for the quarter ended March 31, 2021. The increase was primarily driven by an increase of $0.7 million in deposit fees and an increase of $1.0 million in other non-interest income, partially offset by a decrease of $0.4 million in loan level derivative income, net and a decrease of $0.2 million in gain on sales of loans and leases.

PROVISION FOR CREDIT LOSSES

The Company recorded a negative provision for credit losses of $3.3 million for the quarter ended June 30, 2021, compared to a negative provision for credit losses of $2.1 million for the quarter ended March 31, 2021. Total net charge-offs for the second quarter of 2021 were $0.6 million compared to $1.8 million in the first quarter of 2021. The decrease is primarily driven by a combination of a decrease in charge-offs of equipment financing loans and commercial loans of $0.6 million and $0.3 million, respectively, and an increase in recoveries of equipment financing loans and home equity loans of $0.2 million and $0.1 million, respectively. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis decreased to 3 basis points for the second quarter of 2021 from 10 basis points for the first quarter of 2021.

The allowance for loan and lease losses represented 1.52 percent of total loans and leases at June 30, 2021, compared to 1.51 percent at March 31, 2021, and 1.61 percent at June 30, 2020. Excluding PPP loans, the allowance for loan and lease losses represents 1.60 percent of total loans and leases at June 30, 2021 compared to 1.65 percent at March 31, 2021, and 1.75 percent at June 30, 2020.

ASSET QUALITY

The ratio of nonperforming loans and leases to total loans and leases was 0.49 percent at June 30, 2021, an increase from 0.43 percent at March 31, 2021. Total nonaccrual loans and leases increased $3.2 million to $34.2 million at June 30, 2021 from $31.0 million at March 31, 2021. The ratio of nonperforming assets to total assets was 0.41 percent at June 30, 2021, a decrease from 0.44 percent at March 31, 2021. Total nonperforming assets decreased $2.8 million to $34.6 million at June 30, 2021 from $37.4 million at March 31, 2021.

From March 1, 2020 through the earlier of January 1, 2022 or 60 days after the termination date of the national emergency declared by the President on March 13, 2020 concerning the COVID-19 outbreak, a financial institution may elect to suspend the requirements under accounting principles generally accepted in the U.S. for loan modifications related to the COVID-19 pandemic that would otherwise be categorized as a troubled debt restructured, including impairment accounting. This troubled debt restructuring relief applies for the term of the loan modification that occurs during the applicable period for a loan that was not more than 30 days past due as of December 31, 2019. Financial institutions are required to maintain records of the volume of loans involved in modifications to which troubled debt restructuring relief is applicable. As of June 30, 2021, approximately 90 percent of loans granted an initial loan payment deferral have returned to payment status and 151 credits totaling $96.0 million or 1.4 percent of total loans outstanding are operating under modified terms.

NON-INTEREST EXPENSE

Non-interest expense for the quarter ended June 30, 2021 decreased $2.8 million to $38.0 million from $40.8 million for the quarter ended March 31, 2021. The decrease was primarily driven by decreases of $0.6 million in compensation and employee benefits expense, $0.4 million in FDIC insurance expense and $1.8 million in other non-interest expense due to a $2.1 million gain on sale of other real estate owned.

PROVISION FOR INCOME TAXES

The effective tax rate was 25.4 percent and 25.2 percent for the three and six months ended June 30, 2021 compared to 24.9 percent for the three months ended March 31, 2021 and 24.9 percent and a negative 2.2 percent for the three and six months ended June 30, 2020.

RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

The annualized return on average assets increased to 1.48 percent during the second quarter 2021 from 1.21 percent for the first quarter of 2021.

The annualized return on average stockholders' equity increased to 13.21 percent during the second quarter of 2021 from 11.18 percent for the first quarter of 2021. The annualized return on average tangible stockholders' equity increased to 15.92 percent for the second quarter of 2021 from 13.51 percent for the first quarter of 2021.

DIVIDEND DECLARED

The Company's Board of Directors approved a dividend of $0.12 per share for the quarter ended June 30, 2021. The dividend will be paid on August 27, 2021 to stockholders of record on August 13, 2021.

CONFERENCE CALL

The Company will conduct a conference call/webcast at 1:30 PM Eastern Daylight Time on Thursday, July 29, 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/brkl1210729.html. To listen to the call without access to the slides, interested parties may dial 877-504-4120 (United States) or 412-902-6650 (internationally) and ask for the Brookline Bancorp, Inc. conference call. A recorded playback 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: 10157750.

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 the COVID-19 pandemic 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, general business and economic conditions on a national basis and in the local markets in which the Company operates; changes in consumer behavior due to changing political business and economic conditions or legislative or regulatory initiatives; the possibility that future credit losses may be higher than currently expected; reputational risk relating to the Company's participation in the Paycheck Protection Program and other pandemic-related legislative and regulatory initiatives and programs; 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, the allowance for loan and lease losses as a percentage of total loans and leases less PPP loans, tangible book value per common share, tangible stockholders' equity to tangible assets, return on average tangible assets (annualized) and return on average tangible stockholders' equity (annualized). These non-GAAP financial measures provide information for investors to effectively analyze financial trends of ongoing business activities, and to enhance comparability with peers across the financial services sector. A detailed reconciliation table of the Company's GAAP to the non-GAAP measures is attached.

INVESTOR RELATIONS:

Contact:

Carl M. Carlson

Brookline Bancorp, Inc.

Co-President and Chief Financial Officer

(617) 425-5331

ccarlson@brkl.com

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Selected Financial Highlights (Unaudited)

	At and for the Three Months Ended
	June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020
	(Dollars In Thousands Except per Share Data)
Earnings Data:
Net interest income	$	71,106		$	69,109		$	68,225		$	65,938		$	64,288
(Credit) provision for credit losses		(3,331	)		(2,147	)		(2,103	)		4,528			5,347
Non-interest income		5,910			4,794			4,219			4,862			6,235
Non-interest expense		37,966			40,811			40,038			40,947			39,109
Income before provision for income taxes		42,381			35,239			34,509			25,325			26,067
Net income		31,602			26,454			26,663			18,679			19,571

Performance Ratios:
Net interest margin (1)		3.52	%		3.39	%		3.23	%		3.08	%		3.09	%
Interest-rate spread (1)		3.34	%		3.15	%		3.03	%		2.85	%		2.75	%
Return on average assets (annualized)		1.48	%		1.21	%		1.20	%		0.83	%		0.88	%
Return on average tangible assets (annualized) (non-GAAP)		1.51	%		1.24	%		1.22	%		0.84	%		0.90	%
Return on average stockholders' equity (annualized)		13.21	%		11.18	%		11.38	%		7.99	%		8.45	%
Return on average tangible stockholders' equity (annualized) (non-GAAP)		15.92	%		13.51	%		13.79	%		9.70	%		10.28	%
Efficiency ratio (2)		49.30	%		55.22	%		55.27	%		57.83	%		55.46	%

Per Common Share Data:
Net income (loss) — Basic	$	0.40		$	0.34		$	0.34		$	0.24		$	0.25
Net income (loss) — Diluted		0.40			0.34			0.34			0.24			0.25
Cash dividends declared		0.120			0.120			0.115			0.115			0.115
Book value per share (end of period)		12.44			12.10			12.05			11.84			11.75
Tangible book value per share (end of period) (non-GAAP)		10.35			10.01			9.96			9.77			9.67
Stock price (end of period)		14.95			15.00			12.04			8.65			10.08

Balance Sheet:
Total assets	$	8,461,964		$	8,559,810		$	8,942,424		$	9,000,192		$	9,069,667
Total loans and leases		7,020,275			7,267,552			7,269,553			7,396,358			7,407,697
Total deposits		6,894,701			6,866,786			6,910,696			6,792,523			6,440,233
Total stockholders' equity		972,252			945,399			941,778			935,558			926,413

Asset Quality:
Nonperforming assets	$	34,588		$	37,403		$	44,963		$	39,365		$	42,754
Nonperforming assets as a percentage of total assets		0.41	%		0.44	%		0.50	%		0.44	%		0.47	%
Allowance for loan and lease losses	$	106,474		$	109,837		$	114,379		$	119,971		$	119,553
Allowance for loan and lease losses as a percentage of total loans and leases		1.52	%		1.51	%		1.57	%		1.62	%		1.61	%
Net loan and lease charge-offs	$	595		$	1,760		$	4,381		$	4,963		$	1,383
Net loan and lease charge-offs as a percentage of average loans and leases (annualized)		0.03	%		0.10	%		0.24	%		0.27	%		0.08	%

Capital Ratios:
Stockholders' equity to total assets		11.49	%		11.04	%		10.53	%		10.39	%		10.21	%
Tangible stockholders' equity to tangible assets (non-GAAP)		9.75	%		9.31	%		8.86	%		8.73	%		8.56	%

(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)
	June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020
ASSETS	(In Thousands Except Share Data)
Cash and due from banks	$	36,079		$	41,284		$	36,069		$	33,818		$	38,522
Short-term investments		284,370			89,643			398,848			283,515			216,394
Total cash and cash equivalents		320,449			130,927			434,917			317,333			254,916
Investment securities available-for-sale		694,151			729,901			745,822			783,867			854,505
Investment securities held-to-maturity		-			-			-			-			-
Equity securities held-for-trading		-			518			526			525			1,992
Total investment securities		694,151			730,419			746,348			784,392			856,497
Loans and leases:
Commercial real estate loans		3,815,581			3,790,341			3,823,826			3,835,372			3,837,703
Commercial loans and leases		2,038,851			2,324,202			2,274,899			2,354,613			2,361,463
Consumer loans		1,165,843			1,153,009			1,170,828			1,206,373			1,208,531
Total loans and leases		7,020,275			7,267,552			7,269,553			7,396,358			7,407,697
Allowance for loan and lease losses		(106,474	)		(109,837	)		(114,379	)		(119,971	)		(119,553	)
Net loans and leases		6,913,801			7,157,715			7,155,174			7,276,387			7,288,144
Restricted equity securities		31,627			40,400			49,786			61,715			71,638
Premises and equipment, net of accumulated depreciation		71,240			72,524			71,568			72,441			73,127
Right-of-use asset operating leases		22,682			23,180			24,143			23,492			24,343
Deferred tax asset		41,324			42,857			40,129			42,269			42,683
Goodwill		160,427			160,427			160,427			160,427			160,427
Identified intangible assets, net of accumulated amortization		2,692			2,920			3,152			3,464			3,775
Other real estate owned and repossessed assets		372			6,383			6,515			1,413			1,454
Other assets		203,199			192,058			250,265			256,859			292,663
Total assets	$	8,461,964		$	8,559,810		$	8,942,424		$	9,000,192		$	9,069,667
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand checking accounts	$	1,926,713		$	1,724,170		$	1,592,205		$	1,550,267		$	1,603,037
NOW accounts		495,598			481,988			513,948			459,902			417,622
Savings accounts		782,482			724,504			701,659			716,630			657,758
Money market accounts		2,250,651			2,192,468			2,018,977			1,878,258			1,809,868
Certificate of deposit accounts		1,178,131			1,273,105			1,389,998			1,492,913			1,601,768
Brokered deposit accounts		261,126			470,551			693,909			694,553			350,180
Total deposits		6,894,701			6,866,786			6,910,696			6,792,523			6,440,233
Borrowed funds:
Advances from the FHLBB		204,154			378,646			648,849			841,169			1,267,570
Subordinated debentures and notes		83,821			83,783			83,746			83,707			83,668
Other borrowed funds		75,039			83,574			87,652			80,169			55,431
Total borrowed funds		363,014			546,003			820,247			1,005,045			1,406,669
Operating lease liabilities		22,682			23,180			24,143			23,492			24,343
Mortgagors' escrow accounts		6,231			6,483			5,901			6,429			6,467
Reserve for unfunded credits		13,142			13,705			13,071			13,964			14,816
Accrued expenses and other liabilities		189,942			158,254			226,588			223,181			250,726
Total liabilities		7,489,712			7,614,411			8,000,646			8,064,634			8,143,254
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		738,557			737,882			737,178			736,294			738,155
Retained earnings, partially restricted		304,466			282,301			264,892			247,336			237,808
Accumulated other comprehensive income		6,089			2,082			16,490			18,782			19,538
Treasury stock, at cost;
6,536,478, 6,534,602, 6,525,783, 5,629,854, and 5,859,708 shares, respectively		(77,493	)		(77,463	)		(77,343	)		(67,376	)		(69,572	)
Unallocated common stock held by the Employee Stock Ownership Plan;
37,890, 44,502, 51,114, 58,227, and 65,334 shares, respectively		(219	)		(255	)		(291	)		(330	)		(368	)
Total stockholders' equity		972,252			945,399			941,778			935,558			926,413
Total liabilities and stockholders' equity	$	8,461,964		$	8,559,810		$	8,942,424		$	9,000,192		$	9,069,667

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
	Three Months Ended
	June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020		June 30, 2020
	(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases	$	75,026		$	75,009		$	76,583		$	76,240		$	77,416
Debt securities		3,121			3,118			3,335			3,746			3,701
Marketable and restricted equity securities		233			301			490			672			908
Short-term investments		42			39			59			46			99
Total interest and dividend income		78,422			78,467			80,467			80,704			82,124
Interest expense:
Deposits		5,380			6,707			8,825			10,583			12,778
Borrowed funds		1,936			2,651			3,417			4,183			5,058
Total interest expense		7,316			9,358			12,242			14,766			17,836
Net interest income		71,106			69,109			68,225			65,938			64,288
(Credit) provision for credit losses		(3,331	)		(2,147	)		(2,103	)		4,528			5,347
Net interest income after provision for credit losses		74,437			71,256			70,328			61,410			58,941
Non-interest income:
Deposit fees		3,015			2,281			2,358			2,305			1,929
Loan fees		607			599			588			397			513
Loan level derivative income, net		7			474			145			527			1,440
Gain (loss) on investment securities, net		1			(7	)		-			54			586
Gain on sales of loans and leases held-for-sale		538			709			67			632			299
Other		1,742			738			1,061			947			1,468
Total non-interest income		5,910			4,794			4,219			4,862			6,235
Non-interest expense:
Compensation and employee benefits		25,161			25,821			25,054			26,092			24,619
Occupancy		3,832			4,004			3,806			3,802			3,825
Equipment and data processing		4,697			4,493			4,193			4,293			4,155
Professional services		1,245			1,226			1,338			1,112			1,056
FDIC insurance		657			1,044			1,630			1,363			858
Advertising and marketing		1,110			1,100			1,010			1,024			1,017
Amortization of identified intangible assets		228			232			312			312			311
Other		1,036			2,891			2,695			2,949			3,268
Total non-interest expense		37,966			40,811			40,038			40,947			39,109
Income before provision for income taxes		42,381			35,239			34,509			25,325			26,067
Provision for income taxes		10,779			8,785			7,846			6,646			6,496
Net income	$	31,602		$	26,454		$	26,663		$	18,679		$	19,571
Earnings per common share:
Basic	$	0.40		$	0.34		$	0.34		$	0.24		$	0.25
Diluted	$	0.40		$	0.34		$	0.34		$	0.24		$	0.25
Weighted average common shares outstanding during the period:
Basic		78,150,364			78,143,752			78,533,351			78,948,139			78,849,282
Diluted		78,470,451			78,404,063			78,680,873			79,055,901			79,015,274
Dividends paid per common share	$	0.120		$	0.115		$	0.115		$	0.115		$	0.115

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

	Six Months Ended June 30,
		2021			2020
	(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases	$	150,035		$	156,975
Debt securities		6,239			6,677
Marketable and restricted equity securities		534			1,686
Short-term investments		81			308
Total interest and dividend income		156,889			165,646
Interest expense:
Deposits		12,087			29,018
Borrowed funds		4,587			10,628
Total interest expense		16,674			39,646
Net interest income		140,215			126,000
(Credit) provision for credit losses		(5,478	)		59,461
Net interest income after provision for credit losses		145,693			66,539
Non-interest income:
Deposit Fees		5,296			4,387
Loan Fees		1,160			1,063
Loan level derivative income, net		481			3,596
(Loss) gain on investment securities, net		(6	)		1,916
Gain on sales of loans and leases held-for-sale		1,247			419
Other		2,526			4,182
Total non-interest income		10,704			15,563
Non-interest expense:
Compensation and employee benefits		50,982			49,838
Occupancy		7,836			7,778
Equipment and data processing		9,190			8,858
Professional services		2,471			2,707
FDIC insurance		1,701			1,236
Advertising and marketing		2,210			2,092
Amortization of identified intangible assets		460			647
Other		3,927			6,701
Total non-interest expense		78,777			79,857
Income before provision for income taxes		77,620			2,245
Provision (benefit) for income taxes		19,564			(50	)
Net income	$	58,056		$	2,295
Earnings per common share:
Basic	$	0.74		$	0.03
Diluted	$	0.74		$	0.03
Weighted average common shares outstanding during the period:
Basic		78,147,076			79,165,372
Diluted		78,437,275			79,340,524
Dividends paid per common share	$	0.235		$	0.230

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Asset Quality Analysis (Unaudited)
	At and for the Three Months Ended
	June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020
	(Dollars in Thousands)
NONPERFORMING ASSETS:
Loans and leases accounted for on a nonaccrual basis:
Commercial real estate mortgage	$	11,657		$	3,611		$	3,300		$	10,841		$	10,139
Multi-family mortgage		-			-			-			-			-
Construction		-			3,853			3,853			-			-
Total commercial real estate loans		11,657			7,464			7,153			10,841			10,139

Commercial		3,207			3,161			7,702			7,751			12,427
Equipment financing		14,872			15,772			16,757			13,372			13,100
Condominium association		97			106			112			117			190
Total commercial loans and leases		18,176			19,039			24,571			21,240			25,717

Residential mortgage		3,638			3,722			5,587			4,634			4,157
Home equity		744			793			1,136			1,235			1,278
Other consumer		1			2			1			2			9
Total consumer loans		4,383			4,517			6,724			5,871			5,444

Total nonaccrual loans and leases		34,216			31,020			38,448			37,952			41,300

Other real estate owned		-			5,328			5,415			-			-
Other repossessed assets		372			1,055			1,100			1,413			1,454
Total nonperforming assets	$	34,588		$	37,403		$	44,963		$	39,365		$	42,754

Loans and leases past due greater than 90 days and still accruing	$	3,154		$	1,179		$	11,975		$	1,180		$	1,974

Troubled debt restructurings on accrual		14,387			16,770			11,483			11,309			10,172
Troubled debt restructurings on nonaccrual		6,410			6,293			7,476			5,742			5,972
Total troubled debt restructurings	$	20,797		$	23,063		$	18,959		$	17,051		$	16,144

Nonperforming loans and leases as a percentage of total loans and leases		0.49	%		0.43	%		0.53	%		0.51	%		0.56	%
Nonperforming assets as a percentage of total assets		0.41	%		0.44	%		0.50	%		0.44	%		0.47	%

PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:
Allowance for loan and lease losses at beginning of period	$	109,837		$	114,379		$	119,971		$	119,553		$	113,181
CECL adjustment to retained earnings		-			-			-			-			-
Charge-offs		(1,221	)		(2,143	)		(4,810	)		(5,511	)		(1,803	)
Recoveries		626			383			429			548			420
Net charge-offs		(595	)		(1,760	)		(4,381	)		(4,963	)		(1,383	)
(Credit) provision for loan and lease losses excluding unfunded commitments *		(2,768	)		(2,782	)		(1,211	)		5,381			7,755
Allowance for loan and lease losses at end of period	$	106,474		$	109,837		$	114,379		$	119,971		$	119,553

Allowance for loan and lease losses as a percentage of total loans and leases		1.52	%		1.51	%		1.57	%		1.62	%		1.61	%

NET CHARGE-OFFS:
Commercial real estate loans	$	17		$	-		$	3,444		$	70		$	(94	)
Commercial loans and leases		695			1,809			1,011			4,917			1,498
Consumer loans		(117	)		(49	)		(74	)		(24	)		(21	)
Total net charge-offs	$	595		$	1,760		$	4,381		$	4,963		$	1,383

Net loan and lease charge-offs as a percentage of average loans and leases (annualized)		0.03	%		0.10	%		0.24	%		0.27	%		0.08	%

*Provision for loan and lease losses does not include (credit) provision of $(0.6) million, $0.6 million, $(0.9) million, $(0.9) million and $2.4 million for credit losses on unfunded commitments during the three months ended June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, respectively.

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Average Yields / Costs (Unaudited)
	Three Months Ended
	June 30, 2021						March 31, 2021						June 30, 2020
	Average Balance		Interest (1)		Average Yield/ Cost		Average Balance		Interest (1)		Average Yield/ Cost		Average Balance		Interest (1)		Average Yield/ Cost
	(Dollars in Thousands)
Assets:
Interest-earning assets:
Investments:
Debt securities (2)	$	721,029	$	3,121	1.73	%	$	754,699	$	3,118	1.65	%	$	773,523	$	3,719	1.92	%
Marketable and restricted equity securities (2)		34,989		233	2.67	%		45,673		301	2.64	%		71,058		915	5.15	%
Short-term investments		234,317		42	0.07	%		191,751		39	0.08	%		245,577		99	0.16	%
Total investments		990,335		3,396	1.37	%		992,123		3,458	1.39	%		1,090,158		4,733	1.74	%
Loans and Leases:
Commercial real estate loans (3)		3,780,920		34,320	3.59	%		3,785,897		34,245	3.62	%		3,761,667		36,829	3.87	%
Commercial loans (3)		1,115,910		13,040	4.62	%		1,249,824		12,746	4.08	%		1,234,537		10,450	3.35	%
Equipment financing (3)		1,074,469		17,963	6.69	%		1,079,039		18,043	6.69	%		1,069,192		18,973	7.10	%
Residential mortgage loans (3)		788,296		6,927	3.51	%		780,785		7,232	3.71	%		814,431		8,068	3.96	%
Other consumer loans (3)		368,845		2,833	3.08	%		375,590		2,795	3.02	%		411,326		3,153	3.07	%
Total loans and leases		7,128,440		75,083	4.21	%		7,271,135		75,061	4.13	%		7,291,153		77,473	4.25	%
Total interest-earning assets		8,118,775		78,479	3.87	%		8,263,258		78,519	3.80	%		8,381,311		82,206	3.92	%
Non-interest-earning assets		421,453						450,900						488,229
Total assets	$	8,540,228					$	8,714,158					$	8,869,540

Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts	$	499,883		146	0.12	%	$	477,893		130	0.11	%	$	395,158		114	0.12	%
Savings accounts		774,406		248	0.13	%		712,728		235	0.13	%		663,782		357	0.22	%
Money market accounts		2,247,997		1,497	0.27	%		2,084,503		1,486	0.29	%		1,784,343		2,074	0.47	%
Certificates of deposit		1,226,668		3,102	1.01	%		1,328,112		4,154	1.27	%		1,637,486		8,364	2.05	%
Brokered deposit accounts		418,166		387	0.37	%		610,824		702	0.47	%		381,709		1,869	1.97	%
Total interest-bearing deposits		5,167,120		5,380	0.42	%		5,214,060		6,707	0.52	%		4,862,478		12,778	1.06	%
Borrowings
Advances from the FHLBB		250,102		663	1.05	%		488,537		1,370	1.12	%		1,102,079		3,751	1.35	%
Subordinated debentures and notes		83,802		1,242	5.93	%		83,764		1,242	5.93	%		83,647		1,263	6.04	%
Other borrowed funds		74,285		31	0.17	%		92,391		39	0.17	%		70,795		44	0.25	%
Total borrowings		408,189		1,936	1.88	%		664,692		2,651	1.60	%		1,256,521		5,058	1.59	%
Total interest-bearing liabilities		5,575,309		7,316	0.53	%		5,878,752		9,358	0.65	%		6,118,999		17,836	1.17	%
Non-interest-bearing liabilities:
Demand checking accounts		1,785,023						1,643,373						1,512,089
Other non-interest-bearing liabilities		222,689						245,551						312,213
Total liabilities		7,583,021						7,767,676						7,943,301
Stockholders' equity		957,207						946,482						926,239
Total liabilities and equity	$	8,540,228					$	8,714,158					$	8,869,540
Net interest income (tax-equivalent basis) /Interest-rate spread (4)				71,163	3.34	%				69,161	3.15	%				64,370	2.75	%
Less adjustment of tax-exempt income				57						52						82
Net interest income			$	71,106					$	69,109					$	64,288
Net interest margin (5)					3.52	%					3.39	%					3.09	%

(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)
	Six Months Ended
	June 30, 2021						June 30, 2020
	Average Balance		Interest (1)		Average Yield/ Cost		Average Balance		Interest (1)		Average Yield/ Cost
	(Dollars in Thousands)
Assets:
Interest-earning assets:
Investments:
Debt securities (2)	$	737,771	$	6,239	1.69	%	$	689,704	$	6,743	1.96	%
Marketable and restricted equity securities (2)		40,302		534	2.65	%		64,968		1,701	5.24	%
Short-term investments		213,152		81	0.08	%		164,943		308	0.37	%
Total investments		991,225		6,854	1.38	%		919,615		8,752	1.90	%
Loans and Leases:
Commercial real estate loans (3)		3,783,394		68,565	3.60	%		3,729,339		77,297	4.10	%
Commercial loans (3)		1,182,498		25,786	4.34	%		1,008,923		18,778	3.68	%
Equipment financing (3)		1,076,741		36,006	6.69	%		1,061,019		37,919	7.15	%
Residential mortgage loans (3)		784,562		14,159	3.61	%		812,507		16,002	3.94	%
Other consumer loans (3)		372,198		5,628	3.05	%		414,570		7,108	3.43	%
Total loans and leases		7,199,393		150,144	4.17	%		7,026,358		157,104	4.47	%
Total interest-earning assets		8,190,618		156,998	3.83	%		7,945,973		165,856	4.17	%
Non-interest-earning assets		436,121						471,710
Total assets	$	8,626,739					$	8,417,683

Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts	$	488,949		276	0.11	%	$	377,399		230	0.12	%
Savings accounts		743,738		483	0.13	%		645,363		1,000	0.31	%
Money market accounts		2,166,702		2,983	0.28	%		1,731,496		6,315	0.73	%
Certificates of deposit		1,277,110		7,256	1.15	%		1,660,193		17,615	2.13	%
Brokered deposit accounts		513,963		1,089	0.43	%		369,856		3,858	2.10	%
Total interest-bearing deposits		5,190,462		12,087	0.47	%		4,784,307		29,018	1.22	%
Borrowings
Advances from the FHLBB		368,661		2,033	1.10	%		937,271		7,848	1.66	%
Subordinated debentures and notes		83,783		2,484	5.93	%		83,628		2,547	6.09	%
Other borrowed funds		83,288		70	0.17	%		80,924		233	0.58	%
Total borrowings		535,732		4,587	1.70	%		1,101,823		10,628	1.91	%
Total interest-bearing liabilities		5,726,194		16,674	0.59	%		5,886,130		39,646	1.35	%
Non-interest-bearing liabilities:
Demand checking accounts		1,714,589						1,323,202
Other non-interest-bearing liabilities		234,082						272,162
Total liabilities		7,674,865						7,481,494
Stockholders' equity		951,874						936,189
Total liabilities and equity	$	8,626,739					$	8,417,683
Net interest income (tax-equivalent basis) /Interest-rate spread (4)				140,324	3.24	%				126,210	2.82	%
Less adjustment of tax-exempt income				109						210
Net interest income			$	140,215					$	126,000
Net interest margin (5)					3.45	%					3.19	%

(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)
	Three Months Ended June 30,						Six Months Ended June 30,
		2021			2020			2021			2020
Reconciliation Table - Non-GAAP Financial Information	(Dollars in Thousands Except Share Data)

Net income attributable to Brookline Bancorp, Inc.	$	31,602		$	19,571		$	58,056		$	2,295
Less:
Security gains (losses) (after-tax)		1			440			(4	)		1,958
Operating earnings	$	31,601		$	19,131		$	58,060		$	337

Operating earnings per common share:
Basic	$	0.40		$	0.24		$	0.74		$	-
Diluted		0.40			0.24			0.74			-

Weighted average common shares outstanding during the period:
Basic		78,150,364			78,849,282			78,147,076			79,165,372
Diluted		78,470,451			79,015,274			78,437,275			79,340,524


Return on average assets *		1.48	%		0.88	%		1.35	%		0.05	%
Less:
Security gains (losses) (after-tax) *		-	%		0.02	%		-	%		0.04	%
Operating return on average assets *		1.48	%		0.86	%		1.35	%		0.01	%


Return on average tangible assets *		1.51	%		0.90	%		1.37	%		0.06	%
Less:
Security gains (losses) (after-tax) *		-	%		0.02	%		-	%		0.05	%
Operating return on average tangible assets *		1.51	%		0.88	%		1.37	%		0.01	%


Return on average stockholders' equity *		13.21	%		8.45	%		12.20	%		0.49	%
Less:
Security gains (losses) (after-tax) *		-	%		0.19	%		-	%		0.42	%
Operating return on average stockholders' equity *		13.21	%		8.26	%		12.20	%		0.07	%


Return on average tangible stockholders' equity *		15.92	%		10.28	%		14.73	%		0.59	%
Less:
Security gains (losses) (after-tax) *		-	%		0.24	%		-	%		0.50	%
Operating return on average tangible stockholders' equity *		15.92	%		10.04	%		14.73	%		0.09	%

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

	At and for the Three Months Ended
	June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020
	(Dollars in Thousands)

Net income, as reported	$	31,602		$	26,454		$	26,663		$	18,679		$	19,571

Average total assets	$	8,540,228		$	8,714,158		$	8,874,467		$	9,018,672		$	8,869,540
Less: Average goodwill and average identified intangible assets, net		163,224			163,457			163,758			164,072			164,385
Average tangible assets	$	8,377,004		$	8,550,701		$	8,710,709		$	8,854,600		$	8,705,155

Return on average tangible assets (annualized)		1.51	%		1.24	%		1.22	%		0.84	%		0.90	%

Average total stockholders' equity	$	957,207		$	946,482		$	937,294		$	934,632		$	926,239
Less: Average goodwill and average identified intangible assets, net		163,224			163,457			163,758			164,072			164,385
Average tangible stockholders' equity	$	793,983		$	783,025		$	773,536		$	770,560		$	761,854

Return on average tangible stockholders' equity (annualized)		15.92	%		13.51	%		13.79	%		9.70	%		10.28	%

Total stockholders' equity	$	972,252		$	945,399		$	941,778		$	935,558		$	926,413
Less:
Goodwill		160,427			160,427			160,427			160,427			160,427
Identified intangible assets, net		2,692			2,920			3,152			3,464			3,775
Tangible stockholders' equity	$	809,133		$	782,052		$	778,199		$	771,667		$	762,211

Total assets	$	8,461,964		$	8,559,810		$	8,942,424		$	9,000,192		$	9,069,667
Less:
Goodwill		160,427			160,427			160,427			160,427			160,427
Identified intangible assets, net		2,692			2,920			3,152			3,464			3,775
Tangible assets	$	8,298,845		$	8,396,463		$	8,778,845		$	8,836,301		$	8,905,465

Tangible stockholders' equity to tangible assets		9.75	%		9.31	%		8.86	%		8.73	%		8.56	%

Tangible stockholders' equity	$	809,133		$	782,052		$	778,199		$	771,667		$	762,211

Number of common shares issued		85,177,172			85,177,172			85,177,172			85,177,172			85,177,172
Less:
Treasury shares		6,536,478			6,534,602			6,525,783			5,629,854			5,859,708
Unallocated ESOP shares		37,890			44,502			51,114			58,227			65,334
Unvested restricted shares		448,105			449,981			458,800			487,318			398,188
Number of common shares outstanding		78,154,699			78,148,087			78,141,475			79,001,773			78,853,942

Tangible book value per common share	$	10.35		$	10.01		$	9.96		$	9.77		$	9.67

Allowance for loan and lease losses	$	106,474		$	109,837		$	114,379		$	119,971		$	119,553

Total loans and leases	$	7,020,275		$	7,267,552		$	7,269,553		$	7,396,358		$	7,407,697
Less:
Total PPP loans		348,411			604,790			489,216			568,383			565,768
Total loans and leases excluding PPP loans	$	6,671,864		$	6,662,762		$	6,780,337		$	6,827,975		$	6,841,929

Allowance for loan and lease losses as a percentage of total loans and leases less PPP loans		1.60	%		1.65	%		1.69	%		1.76	%		1.75	%

PDF available: http://ml.globenewswire.com/Resource/Download/3f779060-7808-4880-a3fd-8d7f736854e2

Brookline Bancorp Announces Record Second Quarter Results