GlobeNewswire Inc | Jan 27, 2021 04:15PM EST

January 27, 2021

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 December31, 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 December31, 2019.

Paul Perrault, President and Chief Executive Officer, commented on the Companys 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 quarters 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 Companys 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 December31, 2020 decreased $57.8 million to $8.94 billion from $9.00 billion at September30, 2020, and increased $1.09 billion from $7.86 billion at December31, 2019. At December31, 2020, total loans and leases were $7.27 billion, representing a decrease of $126.8 million from September30, 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 December31, 2019, primarily driven by PPP loan activity.

Total investment securities at December31, 2020 decreased $38.0 million to $746.3 million from $784.4 million at September30, 2020, and increased $157.0 million from $589.4 million at December31, 2019. Total cash and cash equivalents at December31, 2020 increased $117.6 million to $434.9 million from $317.3 million at September30, 2020, and increased $357.1 million from $77.8 million at December31, 2019. As of December31, 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 September30, 2020 and December31, 2019, respectively.

Total deposits at December31, 2020 increased $118.2 million to $6.91 billion from $6.79 billion at September30, 2020 and increased $1.08 billion from $5.83 billion at December31, 2019.

Total borrowed funds at December31, 2020 decreased $184.8 million to $820.2 million from $1.01 billion at September30, 2020 and decreased $82.5 million from $902.7 million at December31, 2019.

The ratio of stockholders equity to total assets was 10.53 percent at December31, 2020, as compared to 10.39 percent at September30, 2020, and 12.04 percent at December31, 2019. The ratio of tangible stockholders equity to tangible assets (non-GAAP) was 8.86 percent at December31, 2020, as compared to 8.73 percent at September30, 2020, and 10.15 percent at December31, 2019. Tangible book value per share (non-GAAP) increased $0.19 from $9.77 at September30, 2020 to $9.96 at December31, 2020, compared to $9.80 at December31, 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 September30, 2020. The net interest margin increased 15 basis points to 3.23 percent for the three months ended December31, 2020 from 3.08 percent for the three months ended September30, 2020.

NON-INTEREST INCOME

Non-interest income for the quarter ended December31, 2020 decreased $0.7 million to $4.2 million from $4.9 million for the quarter ended September30, 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 December31, 2020, compared to a provision of $4.5 million for the quarter ended September30, 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 December31, 2020, compared to 1.62 percent at September30, 2020, and 0.91 percent at December31, 2019. Excluding PPP loans, the allowance for loan and lease losses represents 1.69 percent coverage at December31, 2020 compared to 1.76 percent at September30, 2020.

ASSET QUALITY

The ratio of total nonperforming loans and leases to total loans and leases was 0.53 percent at December31, 2020 as compared to 0.51 percent at September30, 2020. Nonperforming loans and leases increased $0.4 million to $38.4 million at December31, 2020 from $38.0 million at September30, 2020. The ratio of nonperforming assets to total assets was 0.50 percent at December31, 2020 as compared to 0.44 percent at September30, 2020. Nonperforming assets increased $5.6 million to $45.0 million at December31, 2020 from $39.4 million at September30, 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 December31, 2020 decreased $0.9 million to $40.0 million from $40.9 million for the quarter ended September30, 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 December31, 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 December31, 2020, compared to 1.15 percent for the year ended December31, 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 December31, 2020 compared to 11.67 percent for the year ended December31, 2019.

DIVIDEND DECLARED

The Companys Board approved a dividend of $0.115 per share for the quarter ended December31, 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 Companys 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 Companys 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 Companys website, www.brooklinebancorp.com. To listen to the call and view the Companys 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 Companys 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.comand 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 Companys 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 Companys 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 Companys 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 Companys 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 Companys actual results could differ materially from those projected in the forward-looking statements as a result of, among others, the risks outlined in the Companys 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:

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

BROOKLINE BANCORP, INC. AND SUBSIDIARIESSelected Financial Highlights (Unaudited)

At and for the Three Months Ended At and for the Twelve Months Ended December 31, September 30, June 30, 2020 March 31, December 31, December 31, December 31, 2020 2020 2020 2019 2020 2019 (Dollars In Thousands Except per Share Data)Earnings Data:Net interest $ 68,225 $ 65,938 $ 64,288 $ 61,712 $ 63,931 $ 260,163 $ 253,300 income(Credit)provision for (2,103 ) 4,528 5,347 54,114 3,602 61,886 9,583 credit lossesNon-interest 4,219 4,862 6,235 9,328 7,756 24,644 29,793 incomeNon-interest 40,038 40,947 39,109 40,748 38,815 160,844 157,481 expenseIncome (loss)before 34,509 25,325 26,067 (23,822 ) 29,270 62,077 116,029 provision forincome taxesNet income(loss)attributable 26,663 18,679 19,571 (17,276 ) 22,183 47,635 87,717 to BrooklineBancorp, Inc. Performance Ratios:Net interest 3.23 % 3.08 % 3.09 % 3.31 % 3.43 % 3.17 % 3.51 %margin (1)Interest-rate 3.03 % 2.85 % 2.75 % 2.91 % 3.05 % 2.88 % 3.10 %spread (1)Return onaverage 1.20 % 0.83 % 0.88 % (0.87 ) 1.13 % 0.55 % 1.15 %assets %(annualized)Return onaveragetangible 1.22 % 0.84 % 0.90 % (0.89 ) 1.15 % 0.56 % 1.17 %assets %(annualized)(non-GAAP)Return onaverage )stockholders' 11.38 % 7.99 % 8.45 % (7.30 % 9.42 % 5.09 % 9.56 %equity(annualized)Return onaveragetangible )stockholders' 13.79 % 9.70 % 10.28 % (8.84 % 11.42 % 6.17 % 11.67 %equity(annualized)(non-GAAP)Efficiency 55.27 % 57.83 % 55.46 % 57.36 % 54.15 % 56.47 % 55.63 %ratio (2) Per Common Share Data:Net income(loss) ? $ 0.34 $ 0.24 $ 0.25 $ (0.22 ) $ 0.28 $ 0.60 $ 1.10 BasicNet income(loss) ? 0.34 0.24 0.25 (0.22 ) 0.28 0.60 1.10 DilutedCashdividends 0.115 0.115 0.115 0.115 0.115 0.460 0.450 declaredBook valueper share 12.05 11.84 11.75 11.57 11.87 12.05 11.87 (end ofperiod)Tangible bookvalue pershare (end of 9.96 9.77 9.67 9.49 9.80 9.96 9.80 period)(non-GAAP)Stock price(end of 12.04 8.65 10.08 11.28 16.46 12.04 16.46 period) 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 7,269,553 7,396,358 7,407,697 6,822,527 6,737,816 7,269,553 6,737,816 and leasesTotal 6,910,696 6,792,523 6,440,233 5,889,938 5,830,072 6,910,696 5,830,072 depositsBrooklineBancorp, Inc. 941,778 935,558 926,413 912,568 945,606 941,778 945,606 stockholders?equity Asset Quality:Nonperforming $ 44,963 $ 39,365 $ 42,754 $ 41,122 $ 22,092 $ 44,963 $ 22,092 assetsNonperformingassets as a 0.50 % 0.44 % 0.47 % 0.49 % 0.28 % 0.50 % 0.28 %percentage oftotal assetsAllowance forloan and $ 114,379 $ 119,971 $ 119,553 $ 113,181 $ 61,082 $ 114,379 $ 61,082 lease lossesAllowance forloan andlease lossesas a 1.57 % 1.62 % 1.61 % 1.66 % 0.91 % 1.57 % 0.91 %percentage oftotal loansand leasesNet loan andlease $ 4,381 $ 4,963 $ 1,383 $ 2,234 $ 1,622 $ 12,961 $ 7,171 charge-offsNet loan andleasecharge-offsas a 0.24 % 0.27 % 0.08 % 0.13 % 0.10 % 0.18 % 0.11 %percentage ofaverage loansand leases(annualized) Capital Ratios:Stockholders?equity to 10.53 % 10.39 % 10.21 % 10.78 % 12.04 % 10.53 % 12.04 %total assetsTangiblestockholders?equity to 8.86 % 8.73 % 8.56 % 9.02 % 10.15 % 8.86 % 10.15 %tangibleassets(non-GAAP) (1) Calculated on a fully tax-equivalent basis.(2) Calculated as non-interest expense as a percentage of net interest incomeplus non-interest income.

BROOKLINE BANCORP, INC. AND SUBSIDIARIESConsolidated Balance Sheets (Unaudited) December 31, September 30, June 30, 2020 March 31, December 31, 2020 2020 2020 2019ASSETS (In Thousands Except Share Data)Cash and due from $ 36,069 $ 33,818 $ 38,522 $ 86,996 $ 33,589 banksShort-term 398,848 283,515 216,394 253,772 44,201 investmentsTotal cash and 434,917 317,333 254,916 340,768 77,790 cash equivalentsInvestmentsecurities 745,822 783,867 854,505 761,539 498,995 available-for-saleInvestmentsecurities - - - - 86,780 held-to-maturityEquity securities 526 525 1,992 2,558 3,581 held-for-tradingTotal investment 746,348 784,392 856,497 764,097 589,356 securitiesLoans and leases: Commercial real 3,823,826 3,835,372 3,837,703 3,762,158 3,669,222 estate loansCommercial loans 2,274,899 2,354,613 2,361,463 1,826,866 1,838,748 and leasesConsumer loans 1,170,828 1,206,373 1,208,531 1,233,503 1,229,846 Total loans and 7,269,553 7,396,358 7,407,697 6,822,527 6,737,816 leasesAllowance for loan (114,379 ) (119,971 ) (119,553 ) (113,181 ) (61,082 )and lease lossesNet loans and 7,155,174 7,276,387 7,288,144 6,709,346 6,676,734 leasesRestricted equity 49,786 61,715 71,638 68,472 53,818 securitiesPremises andequipment, net of 71,568 72,441 73,127 73,786 74,350 accumulateddepreciationRight-of-use asset 24,143 23,492 24,343 24,789 24,876 operating leasesDeferred tax asset 40,129 42,269 42,683 38,141 25,017 Goodwill 160,427 160,427 160,427 160,427 160,427 Identifiedintangible assets, 3,152 3,464 3,775 4,087 4,423 net of accumulatedamortizationOther real estateowned and 6,515 1,413 1,454 2,038 2,631 repossessed assetsOther 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 ANDSTOCKHOLDERS' EQUITYDeposits: Demand checking $ 1,592,205 $ 1,550,267 $ 1,603,037 $ 1,175,329 $ 1,141,578 accountsNOW 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 2,018,977 1,878,258 1,809,868 1,676,092 1,682,005 accountsCertificate of 1,389,998 1,492,913 1,601,768 1,669,509 1,671,738 deposit accountsBrokered deposit 693,909 694,553 350,180 354,128 349,904 accountsTotal deposits 6,910,696 6,792,523 6,440,233 5,889,938 5,830,072 Borrowed funds: Advances from the 648,849 841,169 1,267,570 1,137,431 758,469 FHLBBSubordinateddebentures and 83,746 83,707 83,668 83,630 83,591 notesOther borrowed 87,652 80,169 55,431 70,743 60,689 fundsTotal borrowed 820,247 1,005,045 1,406,669 1,291,804 902,749 fundsOperating lease 24,143 23,492 24,343 24,789 24,876 liabilitiesMortgagors? escrow 5,901 6,429 6,467 7,441 7,232 accountsReserve for 13,071 13,964 14,816 17,222 1,880 unfunded creditsAccrued expensesand other 226,588 223,181 250,726 317,829 144,438 liabilitiesTotal liabilities 8,000,646 8,064,634 8,143,254 7,549,023 6,911,247 Stockholders' equity:Brookline Bancorp,Inc. stockholders? equityCommon stock,$0.01 par value;200,000,000 sharesauthorized;85,177,172 sharesissued, 85,177,172shares issued, 852 852 852 852 852 85,177,172 sharesissued, 85,177,172shares issued, and85,177,172 sharesissued,respectivelyAdditional paid-in 737,178 736,294 738,155 737,422 736,601 capitalRetained earnings,partially 264,892 247,336 237,808 227,359 265,376 restrictedAccumulated othercomprehensive 16,490 18,782 19,538 16,947 2,283 incomeTreasury stock, at cost;6,525,783 shares,5,629,854 shares,5,859,708 shares,5,862,811 shares, (77,343 ) (67,376 ) (69,572 ) (69,617 ) (59,073 )and 5,003,127shares,respectivelyUnallocated commonstock held by the Employee StockOwnership Plan;51,114 shares,58,227 shares,65,334 shares, (291 ) (330 ) (368 ) (395 ) (433 )72,441 shares, and79,548 shares,respectivelyTotalstockholders' 941,778 935,558 926,413 912,568 945,606 equityTotal liabilitiesand stockholders' $ 8,942,424 $ 9,000,192 $ 9,069,667 $ 8,461,591 $ 7,856,853 equity

BROOKLINE BANCORP, INC. AND SUBSIDIARIESConsolidated Statements of Income (Unaudited) Three Months Ended December 31, September 30, June 30, 2020 March 31, 2020 December 31, 2020 2020 2019 (In Thousands Except Share Data)Interest anddividend income:Loans and $ 76,583 $ 76,240 $ 77,416 $ 79,559 $ 83,309leasesDebt 3,335 3,746 3,701 2,976 2,910securitiesMarketableandrestricted 490 672 908 778 813equitysecuritiesShort-term 59 46 99 209 418investmentsTotalinterest and 80,467 80,704 82,124 83,522 87,450dividendincomeInterest expense:Deposits 8,825 10,583 12,778 16,240 17,655Borrowed 3,417 4,183 5,058 5,570 5,864fundsTotalinterest 12,242 14,766 17,836 21,810 23,519expenseNet interest 68,225 65,938 64,288 61,712 63,931income(Credit)provision for (2,103 ) 4,528 5,347 54,114 3,602credit lossesNet interestincome after(credit) 70,328 61,410 58,941 7,598 60,329provision forcredit lossesNon-interest income:Deposit fees 2,358 2,305 1,929 2,458 2,710Loan fees 588 397 513 550 567Loan levelderivative 145 527 1,440 2,156 2,494income, netGain oninvestment - 54 586 1,330 133securities,netGain on salesof loans and 67 632 299 120 309leasesheld-for-saleOther 1,061 947 1,468 2,714 1,543Totalnon-interest 4,219 4,862 6,235 9,328 7,756incomeNon-interest expense:Compensationand employee 25,054 26,092 24,619 25,219 23,987benefitsOccupancy 3,806 3,802 3,825 3,953 4,102Equipment anddata 4,193 4,293 4,155 4,703 4,601processingProfessional 1,338 1,112 1,056 1,651 1,120servicesFDIC 1,630 1,363 858 378 53insuranceAdvertising 1,010 1,024 1,017 1,075 828and marketingAmortizationof identified 312 312 311 336 420intangibleassetsOther 2,695 2,949 3,268 3,433 3,704Totalnon-interest 40,038 40,947 39,109 40,748 38,815expenseIncome (loss)before 34,509 25,325 26,067 (23,822 ) 29,270provision forincome taxesProvision(benefit) for 7,846 6,646 6,496 (6,546 ) 7,087income taxesNet income(loss)attributable $ 26,663 $ 18,679 $ 19,571 $ (17,276 ) $ 22,183to BrooklineBancorp, Inc.Earnings per common share:Basic 0.34 0.24 0.25 (0.22 ) 0.28Diluted 0.34 0.24 0.25 (0.22 ) 0.28Weighted average common shares outstanding during the period:Basic 78,533,351 78,948,139 78,849,282 79,481,462 79,682,724Diluted 78,680,873 79,055,901 79,015,274 79,665,774 79,845,447Dividendspaid per $ 0.115 $ 0.115 $ 0.115 $ 0.115 $ 0.115common share

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

BROOKLINE BANCORP, INC. AND SUBSIDIARIESAsset Quality Analysis (Unaudited) At and for the Three Months Ended December 31, September 30, June 30, 2020 March 31, December 31, 2020 2020 2020 2019 (Dollars in Thousands)NONPERFORMING ASSETS:Loans andleasesaccounted for on anonaccrualbasis:Commercialreal estate $ 3,300 $ 10,841 $ 10,139 $ 10,937 $ 2,845 mortgageMulti-family - - - 85 84 mortgageConstruction 3,853 - - - - Totalcommercial 7,153 10,841 10,139 11,022 2,929 real estateloans Commercial 7,702 7,751 12,427 12,991 4,909 Equipment 16,757 13,372 13,100 10,356 9,822 financingCondominium 112 117 190 203 151 associationTotalcommercial 24,571 21,240 25,717 23,550 14,882 loans andleases Residential 5,587 4,634 4,157 3,446 753 mortgageHome equity 1,136 1,235 1,278 1,059 896 Other consumer 1 2 9 7 1 Total consumer 6,724 5,871 5,444 4,512 1,650 loans Totalnonaccrual 38,448 37,952 41,300 39,084 19,461 loans andleases Other real 5,415 - - - - estate ownedOtherrepossessed 1,100 1,413 1,454 2,038 2,631 assetsTotalnonperforming $ 44,963 $ 39,365 $ 42,754 $ 41,122 $ 22,092 assets Loans andleases pastdue greater $ 11,975 $ 1,180 $ 1,974 $ 1,045 $ 10,109 than 90 daysand stillaccruing Troubled debtrestructurings 11,483 11,309 10,172 16,480 17,076 on accrualTroubled debtrestructurings 7,476 5,742 5,972 5,819 6,104 on nonaccrualTotal troubleddebt $ 18,959 $ 17,051 $ 16,144 $ 22,299 $ 23,180 restructurings Nonperformingloans andleases as a 0.53 % 0.51 % 0.56 % 0.57 % 0.29 %percentage oftotal loansand leasesNonperformingassets as a 0.50 % 0.44 % 0.47 % 0.49 % 0.28 %percentage oftotal assets PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:Allowance forloan and leaselosses at $ 119,971 $ 119,553 $ 113,181 $ 61,082 $ 59,135 beginning ofperiodCECLadjustment to - - - 6,632 - retainedearningsCharge-offs (4,810 ) (5,511 ) (1,803 ) (2,539 ) (1,894 )Recoveries 429 548 420 305 272 Net (4,381 ) (4,963 ) (1,383 ) (2,234 ) (1,622 )charge-offs(Credit)provision forloan and leaselosses (1,211 ) 5,381 7,755 47,701 3,569 excludingunfundedcommitments *Allowance forloan and lease $ 114,379 $ 119,971 $ 119,553 $ 113,181 $ 61,082 losses at endof period Allowance forloan and leaselosses as a 1.57 % 1.62 % 1.61 % 1.66 % 0.91 %percentage oftotal loansand leases NET CHARGE-OFFS:Commercialreal estate $ 3,444 $ 70 $ (94 ) $ - $ - loansCommercialloans and 1,011 4,917 1,498 2,280 1,589 leasesConsumer loans (74 ) (24 ) (21 ) (46 ) 33 Total net $ 4,381 $ 4,963 $ 1,383 $ 2,234 $ 1,622 charge-offs Net loan andleasecharge-offs asa percentage 0.24 % 0.27 % 0.08 % 0.13 % 0.10 %of averageloans andleases(annualized) *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 losseson 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 SUBSIDIARIESAverage Yields / Costs (Unaudited) Three Months Ended December 31, 2020 September 30, 2020 December 31, 2019 Average Average Average Average Yield/ Average Yield/ Average Yield/ Balance Interest Cost Balance Interest Cost Balance Interest Cost (1) (1) (1) (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 andrestricted equity 51,469 491 3.81 % 66,154 670 4.06 % 59,763 823 5.51 %securities (2)Short-term 223,665 59 0.10 % 192,446 46 0.10 % 93,997 418 1.78 %investmentsTotal 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 3,833,172 35,526 3.63 % 3,831,826 35,615 3.64 % 3,605,169 40,976 4.45 %estate loans (3)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 1,086,855 18,626 6.86 % 1,089,058 19,018 6.99 % 1,037,431 19,271 7.43 %(3)Residential mortgage 803,884 7,530 3.75 % 814,559 7,860 3.86 % 804,672 8,402 4.18 %loans (3)Other consumer loans 385,818 3,020 3.10 % 395,990 3,127 3.13 % 417,950 4,680 4.43 %(3)Total loans and 7,370,612 76,638 4.16 % 7,412,635 76,297 4.12 % 6,691,338 83,395 4.99 %leasesTotalinterest-earning 8,416,160 80,522 3.83 % 8,522,843 80,759 3.79 % 7,412,135 87,593 4.73 %assetsNon-interest-earning 458,307 495,829 448,458 assetsTotal assets $ 8,874,467 $ 9,018,672 $ 7,860,593 Liabilities andStockholders' 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 1,947,686 1,546 0.32 % 1,855,803 1,658 0.36 % 1,685,885 4,947 1.16 %accountsCertificates of 1,452,867 5,718 1.57 % 1,536,969 7,022 1.82 % 1,681,844 9,725 2.29 %depositBrokered deposit 746,281 1,190 0.63 % 562,112 1,517 1.07 % 344,909 2,122 2.44 %accountsTotalinterest-bearing 5,299,226 8,825 0.66 % 5,070,116 10,583 0.83 % 4,660,950 17,655 1.50 %depositsBorrowings: Advances from the 619,844 2,118 1.34 % 944,865 2,876 1.19 % 753,460 4,407 2.29 %FHLBBSubordinated 83,725 1,245 5.95 % 83,687 1,246 5.96 % 83,570 1,293 6.19 %debentures and notesOther 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 %Totalinterest-bearing 6,084,115 12,242 0.80 % 6,217,637 14,766 0.94 % 5,562,523 23,519 1.68 %liabilitiesNon-interest-bearing liabilities:Demand checking 1,587,618 1,569,411 1,142,600 accountsOthernon-interest-bearing 265,440 296,992 213,579 liabilitiesTotal liabilities 7,937,173 8,084,040 6,918,702 Stockholders? equity 937,294 934,632 941,891 Total liabilities $ 8,874,467 $ 9,018,672 $ 7,860,593 and equityNet interest income(tax-equivalentbasis) / 68,280 3.03 % 65,993 2.85 % 64,074 3.05 %Interest-rate spread(4)Less adjustment of 55 55 143 tax-exempt incomeNet interest income $ 68,225 $ 65,938 $ 63,931 Net interest margin 3.23 % 3.08 % 3.43 %(5) (1) Tax-exempt income on debt securities, equity securities and revenue bondsincluded in commercial real estate loans is included on a tax-equivalent basis.(2) Average balances include unrealized gains (losses) on investmentsecurities. Dividend payments may not be consistent and average yield on equitysecurities 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 oninterest-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 SUBSIDIARIESAverage Yields / Costs (Unaudited) Twelve Months Ended December 31, 2020 December 31, 2019 Average Average Average Yield/ Average Yield/ Balance Interest Cost Balance Interest Cost (1) (1) (Dollars in Thousands)Assets: Interest-earning assets:Investments: Debt securities (2) $ 750,689 $ 13,823 1.84 % $ 585,360 $ 12,483 2.13 %Marketable andrestricted equity 61,873 2,862 4.63 % 59,751 3,516 5.88 %securities (2)Short-term 186,617 413 0.22 % 71,090 1,523 2.14 %investmentsTotal investments 999,179 17,098 1.71 % 716,201 17,522 2.45 %Loans and Leases: Commercial real 3,781,201 148,438 3.86 % 3,492,848 164,082 4.63 %estate loans (3)Commercial loans (3) 1,140,699 41,391 3.57 % 817,347 39,839 4.81 %Equipment financing 1,074,561 75,563 7.03 % 1,012,698 74,066 7.31 %(3)Residential mortgage 810,855 31,392 3.87 % 783,556 32,926 4.20 %loans (3)Other consumer loans 402,672 13,255 3.28 % 414,730 19,835 4.78 %(3)Total loans and 7,209,988 310,039 4.30 % 6,521,179 330,748 5.07 %leasesTotalinterest-earning 8,209,167 327,137 3.99 % 7,237,380 348,270 4.81 %assetsNon-interest-earning 474,402 417,254 assetsTotal assets $ 8,683,569 $ 7,654,634 Liabilities andStockholders' 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 1,817,085 9,519 0.52 % 1,682,676 21,206 1.26 %accountsCertificates of 1,577,104 30,355 1.92 % 1,611,389 36,326 2.25 %depositBrokered deposit 512,803 6,565 1.28 % 344,961 8,747 2.54 %accountsTotalinterest-bearing 4,985,583 48,426 0.97 % 4,586,323 69,615 1.52 %depositsBorrowings: Advances from the 859,389 12,842 1.47 % 757,598 18,701 2.43 %FHLBBSubordinated 83,667 5,038 6.02 % 83,511 5,206 6.23 %debentures and notesOther 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 %Totalinterest-bearing 6,019,226 66,654 1.11 % 5,506,708 94,326 1.71 %liabilitiesNon-interest-bearing liabilities:Demand checking 1,451,556 1,070,859 accountsOthernon-interest-bearing 276,712 159,690 liabilitiesTotal liabilities 7,747,494 6,737,257 Brookline Bancorp,Inc. stockholders? 936,075 917,286 equityNoncontrollinginterest in - 91 subsidiaryTotal liabilities $ 8,683,569 $ 7,654,634 and equityNet interest income(tax-equivalentbasis) / 260,483 2.88 % 253,944 3.10 %Interest-rate spread(4)Less adjustment of 320 644 tax-exempt incomeNet interest income $ 260,163 $ 253,300 Net interest margin 3.17 % 3.51 %(5) (1) Tax-exempt income on debt securities, equity securities and revenue bondsincluded in commercial real estate loans is included on a tax-equivalent basis.(2) Average balances include unrealized gains (losses) on investmentsecurities. Dividend payments may not be consistent and average yield on equitysecurities 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 oninterest-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 SUBSIDIARIESNon-GAAP Financial Information (Unaudited) At and for the Three Months At and for the Twelve Months Ended Ended December 31, December 31, 2020 2019 2020 2019 Reconciliation Table - Non-GAAP Financial (Dollars in Thousands Except Share Data)Information Net income attributable to $ 26,663 $ 22,183 $ 47,635 $ 87,717 Brookline Bancorp, Inc.Less: Security gains (after-tax) - 101 1,511 384 Add: Merger and restructuring-related expenses - - - 851 (after-tax)Operating $ 26,663 $ 22,082 $ 46,124 $ 88,184 earnings 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 - % - % - % 0.01 %(after-tax) *Operating return on average 1.20 % 1.12 % 0.53 % 1.15 %assets * Return on average tangible 1.22 % 1.15 % 0.56 % 1.17 %assets *Less: Security gains (after-tax) * - % 0.01 % 0.02 % 0.01 %Add: Merger and restructuring-related expenses - % - % - % 0.01 %(after-tax) *Operating return on average 1.22 % 1.14 % 0.54 % 1.17 %tangible assets * Return on average 11.38 % 9.42 % 5.09 % 9.56 %stockholders' equity *Less: Security gains (after-tax) * - % 0.04 % 0.16 % 0.04 %Add: Merger and restructuring-related expenses - % - % - % 0.09 %(after-tax) *Operating return on average stockholders' 11.38 % 9.38 % 4.93 % 9.61 %equity * Return on average tangible stockholders' 13.79 % 11.42 % 6.17 % 11.67 %equity *Less: Security gains (after-tax) * - % 0.05 % 0.20 % 0.05 %Add: Merger and restructuring-related expenses - % - % - % 0.11 %(after-tax) *Operating return on average tangible 13.79 % 11.37 % 5.97 % 11.73 %stockholders' equity * * Ratios at and for the three months ended are annualized. BROOKLINE BANCORP, INC. AND SUBSIDIARIESNon-GAAP Financial Information (Unaudited) At and for the Three Months Ended At and for the Twelve Months Ended December 31, September 30, June 30, March 31, December 31, December 31, December 31, 2020 2020 2020 2020 2019 2020 2019 (Dollars in Thousands) Net income(loss), as $ 26,663 $ 18,679 $ 19,571 $ (17,276 ) $ 22,183 $ 47,635 $ 87,717 reported Average total $ 8,874,467 $ 9,018,672 $ 8,869,540 $ 7,965,826 $ 7,860,593 $ 8,683,569 $ 7,654,634 assetsLess: Averagegoodwill andaverage 163,758 164,072 164,385 164,701 165,071 164,227 165,697 identifiedintangibleassets, netAveragetangible $ 8,710,709 $ 8,854,600 $ 8,705,155 $ 7,801,125 $ 7,695,522 $ 8,519,342 $ 7,488,937 assets Return onaverage )tangible 1.22 % 0.84 % 0.90 % (0.89 % 1.15 % 0.56 % 1.17 %assets(annualized) Average totalstockholders? $ 937,294 $ 934,632 $ 926,239 $ 946,138 $ 941,891 $ 936,075 $ 917,286 equityLess: Averagegoodwill andaverage 163,758 164,072 164,385 164,701 165,071 164,227 165,697 identifiedintangibleassets, netAveragetangible $ 773,536 $ 770,560 $ 761,854 $ 781,437 $ 776,820 $ 771,848 $ 751,589 stockholders?equity Return onaveragetangible 13.79 % 9.70 % 10.28 % (8.84 ) 11.42 % 6.17 % 11.67 %stockholders? %equity(annualized) BrooklineBancorp, Inc. $ 941,778 $ 935,558 $ 926,413 $ 912,568 $ 945,606 $ 941,778 $ 945,606 stockholders?equityLess: Goodwill 160,427 160,427 160,427 160,427 160,427 160,427 160,427 Identifiedintangible 3,152 3,464 3,775 4,087 4,423 3,152 4,423 assets, netTangiblestockholders' $ 778,199 $ 771,667 $ 762,211 $ 748,054 $ 780,756 $ 778,199 $ 780,756 equity 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 Identifiedintangible 3,152 3,464 3,775 4,087 4,423 3,152 4,423 assets, netTangible $ 8,778,845 $ 8,836,301 $ 8,905,465 $ 8,297,077 $ 7,692,003 $ 8,778,845 $ 7,692,003 assets Tangiblestockholders?equity to 8.86 % 8.73 % 8.56 % 9.02 % 10.15 % 8.86 % 10.15 %tangibleassets Tangiblestockholders' $ 778,199 $ 771,667 $ 762,211 $ 748,054 $ 780,756 $ 778,199 $ 780,756 equity Number ofcommon shares 85,177,172 85,177,172 85,177,172 85,177,172 85,177,172 85,177,172 85,177,172 issuedLess: Treasury 6,525,783 5,629,854 5,859,708 5,862,811 5,003,127 6,525,783 5,003,127 sharesUnallocated 51,114 58,227 65,334 72,441 79,548 51,114 79,548 ESOP sharesUnvestedrestricted 458,800 487,318 398,188 395,085 406,450 458,800 406,450 sharesNumber ofcommon shares 78,141,475 79,001,773 78,853,942 78,846,835 79,688,047 78,141,475 79,688,047 outstanding Tangible bookvalue per $ 9.96 $ 9.77 $ 9.67 $ 9.49 $ 9.80 $ 9.96 $ 9.80 common share Allowance forloan and $ 114,379 $ 119,971 $ 119,553 $ 113,181 $ 61,082 $ 114,379 $ 61,082 lease losses Total loans $ 7,269,553 $ 7,396,358 $ 7,407,697 $ 6,822,527 $ 6,737,816 $ 7,269,553 $ 6,737,816 and leasesLess: Total PPP 489,216 568,383 565,768 - - 489,216 - loansTotal loansand leases $ 6,780,337 $ 6,827,975 $ 6,841,929 $ 6,822,527 $ 6,737,816 $ 6,780,337 $ 6,737,816 excluding PPPloans Allowance forloan andlease lossesas apercentage of 1.69 % 1.76 % 1.75 % 1.66 % 0.91 % 1.69 % 0.91 %total loansand leasesless PPPloans

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