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Brookline Bancorp Announces First Quarter Results
Source: Nasdaq GlobeNewswire / 27 Apr 2022 15:30:46 America/Chicago
Net Income of $24.7 million, EPS of $0.32
Increases Quarterly Dividend 4%
BOSTON, MA, April 27, 2022 (GLOBE NEWSWIRE) -- Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced net income of $24.7 million, or $0.32 per basic and diluted share, for the first quarter of 2022, compared to net income of $28.5 million, or $0.37 per basic and diluted share, for the fourth quarter of 2021, and net income of $26.5 million, or $0.34 per basic and diluted share, for the first quarter of 2021.
Paul Perrault, Chairman and Chief Executive Officer of the Company commented on the first quarter earnings, “I am pleased to report solid earnings for the first quarter of $24.7 million or $0.32 per share.” Perrault continued, “Our bankers continued to generate strong loan and deposit growth during the first quarter. Asset quality continues to be strong as the economy in the markets we serve continues to improve.”
BALANCE SHEET
Total assets at March 31, 2022 increased $31.1 million to $8.63 billion from $8.60 billion at December 31, 2021, and increased $73.9 million from $8.56 billion at March 31, 2021. At March 31, 2022, total loans and leases were $7.2 billion, representing an increase of $68.7 million from December 31, 2021, and a decrease of $44.4 million from March 31, 2021.
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 March 31, 2022, $14.0 million in PPP loans remain outstanding, net of deferred fees and costs of $0.4 million. Excluding PPP loan activity, the core loan portfolio grew $122.4 million in the first quarter compared to growth of $315.6 million in the fourth quarter.
Total investment securities at March 31, 2022 increased $9.7 million to $730.6 million from $720.9 million at December 31, 2021, and increased $0.1 million from $730.4 million at March 31, 2021. Total cash and cash equivalents at March 31, 2022 decreased $34.5 million to $293.3 million from $327.7 million at December 31, 2021, and increased $162.3 million from $130.9 million at March 31, 2021. As of March 31, 2022, total investment securities and total cash and cash equivalents represented 11.9 percent of total assets as compared to 12.2 percent and 10.1 percent as of December 31, 2021 and March 31, 2021, respectively.
Total deposits at March 31, 2022 increased $44.5 million to $7.09 billion from $7.05 billion at December 31, 2021, and increased $227.6 million from $6.87 billion at March 31, 2021.
Total borrowed funds at March 31, 2022 increased $35.6 million to $392.9 million from $357.3 million at December 31, 2021, and decreased $153.1 million from $546.0 million at March 31, 2021.
The ratio of stockholders’ equity to total assets was 11.37 percent at March 31, 2022, as compared to 11.57 percent at December 31, 2021, and 11.04 percent at March 31, 2021. The ratio of tangible stockholders’ equity to tangible assets (non-GAAP) was 9.67 percent at March 31, 2022, as compared to 9.87 percent at December 31, 2021, and 9.31 percent at March 31, 2021. Tangible book value per share (non-GAAP) decreased $0.17 from $10.73 at December 31, 2021 to $10.56 at March 31, 2022, compared to $10.01 at March 31, 2021.
NET INTEREST INCOME
Net interest income decreased $1.7 million to $69.8 million for the first quarter of 2022 from $71.5 million at the quarter ended December 31, 2021. The net interest margin decreased 3 basis points to 3.49 percent for the three months ended March 31, 2022 from 3.52 percent for the three months ended December 31, 2021.
NON-INTEREST INCOME
Total non-interest income for the quarter ended March 31, 2022 decreased $5.2 million to $5.5 million from $10.7 million for the quarter ended December 31, 2021. The decrease was primarily driven by a decrease of $3.3 million in loan level derivative income, net, a decrease of $1.6 million in gain on sales of loans and leases, a decrease of $0.5 million in other non-interest income, and a decrease of $0.1 million in deposit fees, partially offset by an increase of $0.3 million in loan fees.
PROVISION FOR CREDIT LOSSES
The Company recorded a negative provision for credit losses of $0.2 million for the quarter ended March 31, 2022, compared to a provision for credit losses of $0.8 million for the quarter ended December 31, 2021. Total net charge-offs for the first quarter of 2022 were $1.9 million compared to $2.1 million in the fourth quarter of 2021. The decrease was primarily driven by a decrease in net charge-offs of equipment financing and commercial loans of $0.1 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 11 basis points for the first quarter of 2022 from 12 basis points for the fourth quarter of 2021.
The allowance for loan and lease losses represented 1.32 percent of total loans and leases at March 31, 2022, compared to 1.38 percent at December 31, 2021, and 1.51 percent at March 31, 2021. Excluding PPP loans, the allowance for loan and lease losses represented 1.32 percent of total loans and leases at March 31, 2022 compared to 1.40 percent at December 31, 2021, and 1.65 percent at March 31, 2021.
ASSET QUALITY
The ratio of nonperforming loans and leases to total loans and leases was 0.35 percent at March 31, 2022, a decrease from 0.45 percent at December 31, 2021. Total nonaccrual loans and leases decreased $7.0 million to $25.5 million at March 31, 2022 from $32.5 million at December 31, 2021. The ratio of nonperforming assets to total assets was 0.31 percent at March 31, 2022, a decrease from 0.39 percent at December 31, 2021. Total nonperforming assets decreased $6.7 million to $26.5 million at March 31, 2022 from $33.2 million at December 31, 2021.
From March 1, 2020 through January 1, 2022, 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 March 31, 2022, approximately 98 percent of loans granted an initial loan payment deferral have returned to payment status and 69 credits totaling $15.0 million, or 0.2 percent of total loans outstanding, are operating under modified terms.
NON-INTEREST EXPENSE
Non-interest expense for the quarter ended March 31, 2022 decreased $0.4 million to $42.5 million from $42.9 million for the quarter ended December 31, 2021. The decrease was primarily driven by a decrease of $1.7 million in compensation and employee benefits expense and a decrease of $0.4 million in other non-interest expense, partially offset by an increase of $0.7 million in occupancy expense, an increase of $0.5 million in equipment and data processing expense, an increase of $0.4 million in advertising and marketing expense, and an increase of $0.1 million in FDIC insurance expense.
PROVISION FOR INCOME TAXES
The effective tax rate was 25.2 percent for the three months ended March 31, 2022 compared to 25.9 percent for the three months ended December 31, 2021 and 24.9 percent for the three months ended March 31, 2021.
RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY
The annualized return on average assets decreased to 1.16 percent during the first quarter 2022 from 1.35 percent for the fourth quarter of 2021.
The annualized return on average stockholders' equity decreased to 9.91 percent during the first quarter of 2022 from 11.56 percent for the fourth quarter of 2021. The annualized return on average tangible stockholders’ equity decreased to 11.84 percent for the first quarter of 2022 from 13.84 percent for the fourth quarter of 2021.
DIVIDEND DECLARED
The Company’s Board of Directors approved a dividend of $0.130 per share for the quarter ended March 31, 2022, an increase of half a cent from the prior period. The dividend will be paid on May 27, 2022 to stockholders of record on May 13, 2022, representing an increase of 4.0 percent from the prior quarter.
CONFERENCE CALL
The Company will conduct a conference call/webcast at 1:30 PM Eastern Time on Thursday, April 28, 2022 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/mediaframe/webcast.html?webcastid=tiHQ5cik. To listen to the call without access to the slides, interested parties may dial 844-200-6205 (United States) or 929-526-1599 (internationally) and ask for the Brookline Bancorp, Inc. conference call (Access Code 477488). 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 866-813-9403 (United States) or 1-929-458-6194 (internationally) and entering the passcode: 051536.
ABOUT BROOKLINE BANCORP, INC.
Brookline Bancorp, Inc., a bank holding company with $8.6 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. We may also make forward-looking statements in other documents we file with the Securities and Exchange Commission ("SEC"), in our annual reports to shareholders, in press releases and other written materials, and in oral statements made by our officers, directors or employees. You can identify forward looking statements by the use of the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “assume,” “outlook,” “will,” “should,” and other expressions that predict or indicate future events and trends and which do not relate to historical matters, including statements regarding the Company’s business, credit quality, financial condition, liquidity and results of operations. Forward-looking statements 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; 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 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.comBROOKLINE BANCORP, INC. AND SUBSIDIARIES Selected Financial Highlights (Unaudited) At and for the Three Months Ended March 31,
2022December 31,
2021September 30,
2021June 30,
2021March 31,
2021(Dollars In Thousands Except per Share Data) Earnings Data: Net interest income $ 69,848 $ 71,461 $ 70,697 $ 71,106 $ 69,109 (Credit) provision for credit losses (164 ) 751 (3,110 ) (3,331 ) (2,147 ) Non-interest income 5,529 10,699 5,586 5,910 4,794 Non-interest expense 42,487 42,909 40,922 37,966 40,811 Income before provision for income taxes 33,050 38,500 38,471 42,381 35,239 Net income 24,705 28,545 28,839 31,602 26,454 Performance Ratios: Net interest margin (1) 3.49 % 3.52 % 3.53 % 3.52 % 3.39 % Interest-rate spread (1) 3.31 % 3.42 % 3.39 % 3.34 % 3.15 % Return on average assets (annualized) 1.16 % 1.35 % 1.38 % 1.48 % 1.21 % Return on average tangible assets (annualized) (non-GAAP) 1.18 % 1.38 % 1.41 % 1.51 % 1.24 % Return on average stockholders' equity (annualized) 9.91 % 11.56 % 11.79 % 13.21 % 11.18 % Return on average tangible stockholders' equity (annualized) (non-GAAP) 11.84 % 13.84 % 14.15 % 15.92 % 13.51 % Efficiency ratio (2) 56.37 % 52.23 % 53.64 % 49.30 % 55.22 % Per Common Share Data: Net income — Basic $ 0.32 $ 0.37 $ 0.37 $ 0.40 $ 0.34 Net income — Diluted 0.32 0.37 0.37 0.40 0.34 Cash dividends declared 0.130 0.125 0.125 0.120 0.120 Book value per share (end of period) 12.65 12.82 12.61 12.44 12.10 Tangible book value per share (end of period) (non-GAAP) 10.56 10.73 10.51 10.35 10.01 Stock price (end of period) 15.82 16.19 15.26 14.95 15.00 Balance Sheet: Total assets $ 8,633,736 $ 8,602,622 $ 8,312,649 $ 8,461,964 $ 8,559,810 Total loans and leases 7,223,130 7,154,457 6,931,694 7,020,275 7,267,552 Total deposits 7,094,378 7,049,906 6,873,010 6,894,701 6,866,786 Total stockholders’ equity 981,935 995,342 978,452 972,252 945,399 Asset Quality: Nonperforming assets $ 26,506 $ 33,177 $ 36,461 $ 34,588 $ 37,403 Nonperforming assets as a percentage of total assets 0.31 % 0.39 % 0.44 % 0.41 % 0.44 % Allowance for loan and lease losses $ 95,463 $ 99,084 $ 102,515 $ 106,474 $ 109,837 Allowance for loan and lease losses as a percentage of total loans and leases 1.32 % 1.38 % 1.48 % 1.52 % 1.51 % Net loan and lease charge-offs $ 1,947 $ 2,124 $ 1,255 $ 595 $ 1,760 Net loan and lease charge-offs as a percentage of average loans and leases (annualized) 0.11 % 0.12 % 0.07 % 0.03 % 0.10 % Capital Ratios: Stockholders’ equity to total assets 11.37 % 11.57 % 11.77 % 11.49 % 11.04 % Tangible stockholders’ equity to tangible assets (non-GAAP) 9.67 % 9.87 % 10.01 % 9.75 % 9.31 % (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, 2022 December 31,
2021September 30,
2021June 30,
2021March 31, 2021 ASSETS (In Thousands Except Share Data) Cash and due from banks $ 89,032 $ 66,265 $ 28,865 $ 36,079 $ 41,284 Short-term investments 204,239 261,472 210,279 284,370 89,643 Total cash and cash equivalents 293,271 327,737 239,144 320,449 130,927 Investment securities available-for-sale 730,562 720,866 732,020 694,151 729,901 Equity securities held-for-trading - - - - 518 Total investment securities 730,562 720,866 732,020 694,151 730,419 Allowance for investment security losses (4 ) - - - - Net investment securities 730,558 720,866 732,020 694,151 730,419 Loans and leases: Commercial real estate loans 4,235,325 4,103,040 3,909,011 3,815,581 3,790,341 Commercial loans and leases 1,800,383 1,887,136 1,869,686 2,038,851 2,324,202 Consumer loans 1,187,422 1,164,281 1,152,997 1,165,843 1,153,009 Total loans and leases 7,223,130 7,154,457 6,931,694 7,020,275 7,267,552 Allowance for loan and lease losses (95,463 ) (99,084 ) (102,515 ) (106,474 ) (109,837 ) Net loans and leases 7,127,667 7,055,373 6,829,179 6,913,801 7,157,715 Restricted equity securities 29,066 28,981 28,098 31,627 40,400 Premises and equipment, net of accumulated depreciation 69,365 70,359 70,811 71,240 72,524 Right-of-use asset operating leases 19,571 20,508 21,879 22,682 23,180 Deferred tax asset 46,886 38,987 39,643 41,324 42,857 Goodwill 160,427 160,427 160,427 160,427 160,427 Identified intangible assets, net of accumulated amortization 2,142 2,276 2,484 2,692 2,920 Other real estate owned and repossessed assets 990 718 601 372 6,383 Other assets 153,793 176,390 188,363 203,199 192,058 Total assets $ 8,633,736 $ 8,602,622 $ 8,312,649 $ 8,461,964 $ 8,559,810 LIABILITIES AND STOCKHOLDERS' EQUITY Deposits: Demand checking accounts $ 1,903,331 $ 1,888,462 $ 1,816,116 $ 1,926,713 $ 1,724,170 NOW accounts 627,904 604,097 513,032 495,598 481,988 Savings accounts 967,183 915,804 823,095 782,482 724,504 Money market accounts 2,432,377 2,358,306 2,393,362 2,250,651 2,192,468 Certificate of deposit accounts 1,048,036 1,117,695 1,141,861 1,178,131 1,273,105 Brokered deposit accounts 115,547 165,542 185,544 261,126 470,551 Total deposits 7,094,378 7,049,906 6,873,010 6,894,701 6,866,786 Borrowed funds: Advances from the FHLBB 201,236 147,907 113,977 204,154 378,646 Subordinated debentures and notes 83,934 83,897 83,859 83,821 83,783 Other borrowed funds 107,727 125,517 69,703 75,039 83,574 Total borrowed funds 392,897 357,321 267,539 363,014 546,003 Operating lease liabilities 19,571 20,508 21,879 22,682 23,180 Mortgagors’ escrow accounts 5,780 6,296 6,455 6,231 6,483 Reserve for unfunded credits 16,305 14,794 12,736 13,142 13,705 Accrued expenses and other liabilities 122,870 158,455 152,578 189,942 158,254 Total liabilities 7,651,801 7,607,280 7,334,197 7,489,712 7,614,411 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 737,658 736,826 735,990 738,557 737,882 Retained earnings, partially restricted 357,576 342,639 323,862 304,466 282,301 Accumulated other comprehensive income (29,322 ) (110 ) 2,615 6,089 2,082 Treasury stock, at cost; 7,037,464, 7,037,464, 7,034,754, 6,536,478, and 6,534,602 shares, respectively (84,718 ) (84,718 ) (84,684 ) (77,493 ) (77,463 ) Unallocated common stock held by the Employee Stock Ownership Plan; 18,051, 24,660, 31,278, 37,890, and 44,502 shares, respectively (111 ) (147 ) (183 ) (219 ) (255 ) Total stockholders' equity 981,935 995,342 978,452 972,252 945,399 Total liabilities and stockholders' equity $ 8,633,736 $ 8,602,622 $ 8,312,649 $ 8,461,964 $ 8,559,810 BROOKLINE BANCORP, INC. AND SUBSIDIARIES Consolidated Statements of Income (Unaudited) Three Months Ended March 31,
2022December 31,
2021September 30, 2021 June 30,
2021March 31,
2021(In Thousands Except Share Data) Interest and dividend income: Loans and leases $ 71,721 $ 73,560 $ 74,332 $ 75,026 $ 75,009 Debt securities 2,996 2,972 2,967 3,121 3,118 Marketable and restricted equity securities 328 325 313 233 301 Short-term investments 66 88 83 42 39 Total interest and dividend income 75,111 76,945 77,695 78,422 78,467 Interest expense: Deposits 3,771 4,055 4,571 5,380 6,707 Borrowed funds 1,492 1,429 2,427 1,936 2,651 Total interest expense 5,263 5,484 6,998 7,316 9,358 Net interest income 69,848 71,461 70,697 71,106 69,109 (Credit) provision for credit losses (164 ) 751 (3,110 ) (3,331 ) (2,147 ) Provision for investment losses 4 - - - - Net interest income after provision for credit losses 70,008 70,710 73,807 74,437 71,256 Non-interest income: Deposit fees 2,500 2,653 2,629 3,015 2,281 Loan fees 747 448 487 607 599 Loan level derivative income, net 686 3,981 218 7 474 Gain (loss) on investment securities, net - (32 ) - 1 (7 ) Gain on sales of loans and leases held-for-sale 344 1,933 557 538 709 Other 1,252 1,716 1,695 1,742 738 Total non-interest income 5,529 10,699 5,586 5,910 4,794 Non-interest expense: Compensation and employee benefits 26,884 28,598 27,206 25,161 25,821 Occupancy 4,284 3,558 3,567 3,832 4,004 Equipment and data processing 5,078 4,576 4,556 4,697 4,493 Professional services 1,226 1,151 1,072 1,245 1,226 FDIC insurance 728 617 662 657 1,044 Advertising and marketing 1,272 880 1,077 1,110 1,100 Amortization of identified intangible assets 134 208 208 228 232 Other 2,881 3,321 2,574 1,036 2,891 Total non-interest expense 42,487 42,909 40,922 37,966 40,811 Income before provision for income taxes 33,050 38,500 38,471 42,381 35,239 Provision for income taxes 8,345 9,955 9,632 10,779 8,785 Net income $ 24,705 $ 28,545 $ 28,839 $ 31,602 $ 26,454 Earnings per common share: Basic $ 0.32 $ 0.37 $ 0.37 $ 0.40 $ 0.34 Diluted $ 0.32 $ 0.37 $ 0.37 $ 0.40 $ 0.34 Weighted average common shares outstanding during the period: Basic 77,617,227 77,610,608 78,000,261 78,150,364 78,143,752 Diluted 77,926,822 77,864,097 78,240,633 78,470,451 78,404,063 Dividends paid per common share $ 0.125 $ 0.125 $ 0.120 $ 0.120 $ 0.115 BROOKLINE BANCORP, INC. AND SUBSIDIARIES Asset Quality Analysis (Unaudited) At and for the Three Months Ended March 31,
2022December 31,
2021September 30, 2021 June 30,
2021March 31,
2021(Dollars in Thousands) NONPERFORMING ASSETS: Loans and leases accounted for on a nonaccrual basis: Commercial real estate mortgage $ 8,313 $ 10,848 $ 10,963 $ 11,657 $ 3,611 Multi-family mortgage - - - - - Construction - - - - 3,853 Total commercial real estate loans 8,313 10,848 10,963 11,657 7,464 Commercial 1,366 2,318 2,539 3,207 3,161 Equipment financing 11,685 15,014 17,655 14,872 15,772 Condominium association 77 84 91 97 106 Total commercial loans and leases 13,128 17,416 20,285 18,176 19,039 Residential mortgage 3,394 3,909 4,150 3,638 3,722 Home equity 680 285 461 744 793 Other consumer 1 1 1 1 2 Total consumer loans 4,075 4,195 4,612 4,383 4,517 Total nonaccrual loans and leases 25,516 32,459 35,860 34,216 31,020 Other real estate owned - - - - 5,328 Other repossessed assets 990 718 601 372 1,055 Total nonperforming assets $ 26,506 $ 33,177 $ 36,461 $ 34,588 $ 37,403 Loans and leases past due greater than 90 days and still accruing $ 4 $ 1 $ 838 $ 3,154 $ 1,179 Troubled debt restructurings on accrual 10,858 12,580 13,526 14,387 16,770 Troubled debt restructurings on nonaccrual 5,189 6,709 6,655 6,410 6,293 Total troubled debt restructurings $ 16,047 $ 19,289 $ 20,181 $ 20,797 $ 23,063 Nonperforming loans and leases as a percentage of total loans and leases 0.35 % 0.45 % 0.52 % 0.49 % 0.43 % Nonperforming assets as a percentage of total assets 0.31 % 0.39 % 0.44 % 0.41 % 0.44 % PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES: Allowance for loan and lease losses at beginning of period $ 99,084 $ 102,515 $ 106,474 $ 109,837 $ 114,379 Charge-offs (2,344 ) (2,562 ) (1,600 ) (1,221 ) (2,143 ) Recoveries 397 438 345 626 383 Net charge-offs (1,947 ) (2,124 ) (1,255 ) (595 ) (1,760 ) (Credit) provision for loan and lease losses
excluding unfunded commitments *(1,674 ) (1,307 ) (2,704 ) (2,768 ) (2,782 ) Allowance for loan and lease losses at end of period $ 95,463 $ 99,084 $ 102,515 $ 106,474 $ 109,837 Allowance for loan and lease losses as a percentage of total loans and leases 1.32 % 1.38 % 1.48 % 1.52 % 1.51 % NET CHARGE-OFFS: Commercial real estate loans $ 31 $ - $ (1 ) $ 17 $ - Commercial loans and leases 1,948 2,143 1,276 695 1,809 Consumer loans (32 ) (19 ) (20 ) (117 ) (49 ) Total net charge-offs $ 1,947 $ 2,124 $ 1,255 $ 595 $ 1,760 Net loan and lease charge-offs as a percentage of average loans and leases (annualized) 0.11 % 0.12 % 0.07 % 0.03 % 0.10 % *Provision for loan and lease losses does not include provision (credit) of $1.5 million, $2.1 million, $(0.4) million, $(0.6) million and $0.6 million, for credit losses on unfunded commitments during the three months ended March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021 and March 31, 2021, respectively. BROOKLINE BANCORP, INC. AND SUBSIDIARIES Average Yields / Costs (Unaudited) Three Months Ended March 31, 2022 December 31, 2021 March 31, 2021 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) $ 720,263 $ 2,996 1.66 % $ 727,734 $ 2,972 1.63 % $ 754,699 $ 3,118 1.65 % Marketable and restricted equity securities (2) 27,909 328 4.70 % 27,019 325 4.81 % 45,673 301 2.64 % Short-term investments 192,475 66 0.14 % 224,573 88 0.16 % 191,751 39 0.08 % Total investments 940,647 3,390 1.44 % 979,326 3,385 1.38 % 992,123 3,458 1.39 % Loans and Leases: Commercial real estate loans (3) 4,152,414 36,027 3.47 % 3,996,647 35,762 3.50 % 3,785,897 34,245 3.62 % Commercial loans (3) 755,809 7,998 4.23 % 820,932 10,146 4.84 % 1,249,824 12,746 4.08 % Equipment financing (3) 1,105,194 18,012 6.52 % 1,092,457 18,175 6.65 % 1,079,039 18,043 6.69 % Residential mortgage loans (3) 804,939 6,992 3.47 % 796,326 6,785 3.41 % 780,785 7,232 3.71 % Other consumer loans (3) 366,534 2,750 3.04 % 368,087 2,751 2.96 % 375,590 2,795 3.02 % Total loans and leases 7,184,890 71,779 4.00 % 7,074,449 73,619 4.16 % 7,271,135 75,061 4.13 % Total interest-earning assets 8,125,537 75,169 3.70 % 8,053,775 77,004 3.82 % 8,263,258 78,519 3.80 % Non-interest-earning assets 405,506 408,456 450,900 Total assets $ 8,531,043 $ 8,462,231 $ 8,714,158 Liabilities and Stockholders' Equity: Interest-bearing liabilities: Deposits: NOW accounts $ 589,891 103 0.07 % $ 528,335 101 0.08 % $ 477,893 130 0.11 % Savings accounts 933,173 198 0.09 % 897,821 219 0.10 % 712,728 235 0.13 % Money market accounts 2,416,577 1,570 0.26 % 2,430,496 1,615 0.26 % 2,084,503 1,486 0.29 % Certificates of deposit 1,091,729 1,848 0.69 % 1,129,645 2,072 0.73 % 1,328,112 4,154 1.27 % Brokered deposit accounts 132,751 52 0.16 % 116,611 48 0.16 % 610,824 702 0.47 % Total interest-bearing deposits 5,164,121 3,771 0.30 % 5,102,908 4,055 0.32 % 5,214,060 6,707 0.52 % Borrowings Advances from the FHLBB 103,878 187 0.72 % 76,786 117 0.59 % 488,537 1,370 1.12 % Subordinated debentures and notes 83,915 1,244 5.93 % 83,878 1,241 5.92 % 83,764 1,242 5.93 % Other borrowed funds 130,080 61 0.19 % 112,137 71 0.25 % 92,391 39 0.17 % Total borrowings 317,873 1,492 1.88 % 272,801 1,429 2.05 % 664,692 2,651 1.60 % Total interest-bearing liabilities 5,481,994 5,263 0.39 % 5,375,709 5,484 0.40 % 5,878,752 9,358 0.65 % Non-interest-bearing liabilities: Demand checking accounts 1,880,039 1,892,763 1,643,373 Other non-interest-bearing liabilities 171,717 206,237 245,551 Total liabilities 7,533,750 7,474,709 7,767,676 Stockholders’ equity 997,293 987,522 946,482 Total liabilities and equity $ 8,531,043 $ 8,462,231 $ 8,714,158 Net interest income (tax-equivalent basis) /Interest-rate spread (4) 69,906 3.31 % 71,520 3.42 % 69,161 3.15 % Less adjustment of tax-exempt income 58 59 52 Net interest income $ 69,848 $ 71,461 $ 69,109 Net interest margin (5) 3.49 % 3.52 % 3.39 % (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
March 31,2022 2021 Reconciliation Table - Non-GAAP Financial Information (Dollars in Thousands Except Share Data) Net income $ 24,705 $ 26,454 Less: Security gains (losses) (after-tax) - (5 ) Operating earnings $ 24,705 $ 26,459 Operating earnings per common share: Basic $ 0.32 $ 0.34 Diluted 0.32 0.34 Weighted average common shares outstanding during the period: Basic 77,617,227 78,143,752 Diluted 77,926,822 78,404,063 Return on average assets * 1.16 % 1.21 % Less: Security gains (losses) (after-tax) * - % - % Operating return on average assets * 1.16 % 1.21 % Return on average tangible assets * 1.18 % 1.24 % Less: Security gains (losses) (after-tax) * - % - % Operating return on average tangible assets * 1.18 % 1.24 % Return on average stockholders' equity * 9.91 % 11.18 % Less: Security gains (losses) (after-tax) * - % - % Operating return on average stockholders' equity * 9.91 % 11.18 % Return on average tangible stockholders' equity * 11.84 % 13.51 % Less: Security gains (losses) (after-tax) * - % - % Operating return on average tangible stockholders' equity * 11.84 % 13.51 % * Ratios at and for the three months ended are annualized. At and for the Three Months Ended March 31,
2022December 31,
2021September 30,
2021June 30,
2021March 31,
2021(Dollars in Thousands) Net income, as reported $ 24,705 $ 28,545 $ 28,839 $ 31,602 $ 26,454 Average total assets $ 8,531,043 $ 8,462,231 $ 8,360,635 $ 8,540,228 $ 8,714,158 Less: Average goodwill and average identified intangible assets, net 162,632 162,804 163,011 163,224 163,457 Average tangible assets $ 8,368,411 $ 8,299,427 $ 8,197,624 $ 8,377,004 $ 8,550,701 Return on average tangible assets (annualized) 1.18 % 1.38 % 1.41 % 1.51 % 1.24 % Average total stockholders’ equity $ 997,293 $ 987,522 $ 978,371 $ 957,207 $ 946,482 Less: Average goodwill and average identified intangible assets, net 162,632 162,804 163,011 163,224 163,457 Average tangible stockholders’ equity $ 834,661 $ 824,718 $ 815,360 $ 793,983 $ 783,025 Return on average tangible stockholders’ equity (annualized) 11.84 % 13.84 % 14.15 % 15.92 % 13.51 % Total stockholders’ equity $ 981,935 $ 995,342 $ 978,452 $ 972,252 $ 945,399 Less: Goodwill 160,427 160,427 160,427 160,427 160,427 Identified intangible assets, net 2,142 2,276 2,484 2,692 2,920 Tangible stockholders' equity $ 819,366 $ 832,639 $ 815,541 $ 809,133 $ 782,052 Total assets $ 8,633,736 $ 8,602,622 $ 8,312,649 $ 8,461,964 $ 8,559,810 Less: Goodwill 160,427 160,427 160,427 160,427 160,427 Identified intangible assets, net 2,142 2,276 2,484 2,692 2,920 Tangible assets $ 8,471,167 $ 8,439,919 $ 8,149,738 $ 8,298,845 $ 8,396,463 Tangible stockholders’ equity to tangible assets 9.67 % 9.87 % 10.01 % 9.75 % 9.31 % Tangible stockholders' equity $ 819,366 $ 832,639 $ 815,541 $ 809,133 $ 782,052 Number of common shares issued 85,177,172 85,177,172 85,177,172 85,177,172 85,177,172 Less: Treasury shares 7,037,464 7,037,464 7,034,754 6,536,478 6,534,602 Unallocated ESOP shares 18,051 24,660 31,278 37,890 44,502 Unvested restricted shares 500,098 500,098 502,808 448,105 449,981 Number of common shares outstanding 77,621,559 77,614,950 77,608,332 78,154,699 78,148,087 Tangible book value per common share $ 10.56 $ 10.73 $ 10.51 $ 10.35 $ 10.01 Allowance for loan and lease losses $ 95,463 $ 99,084 $ 102,515 $ 106,474 $ 109,837 Total loans and leases $ 7,223,130 $ 7,154,457 $ 6,931,694 $ 7,020,275 $ 7,267,552 Less: Total PPP loans 14,013 67,711 160,586 348,411 604,790 Total loans and leases excluding PPP loans $ 7,209,117 $ 7,086,746 $ 6,771,108 $ 6,671,864 $ 6,662,762 Allowance for loan and lease losses as a percentage of total loans and leases less PPP loans 1.32 % 1.40 % 1.51 % 1.60 % 1.65 % A PDF accompanying this announcement is available at http://ml.globenewswire.com/Resource/Download/4fad90dc-2014-4f33-8dff-96a2325e992c