GlobeNewswire Inc | Apr 28, 2021 04:05PM EDT

April 28, 2021

Net Income of $26.5 million, EPS of $0.34

Quarterly Dividend Increase of 4.3%

BOSTON, April 28, 2021 (GLOBE NEWSWIRE) -- Brookline Bancorp, Inc. (NASDAQ: BRKL) (the Company) today announced net income of $26.5 million, or $0.34 per basic and diluted share, for the first quarter of 2021, compared to net income of $26.7 million, or $0.34 per basic and diluted share, for the fourth quarter of 2020, and net loss of $(17.3) million, or $(0.22) per basic and diluted share, for the first quarter of 2020.

Our Companys solid performance continued in the first quarter and I am pleased to announce an increase in our dividend to $0.12 per share, Paul Perrault, President and Chief Executive Officer of the Company continued, We are proud of the work that our employees have done in supporting our customers and communities over the past year and we look forward to a continued strong performance for the remainder of the year.

BALANCE SHEET

Total assets at March31, 2021 decreased $382.6 million to $8.6 billion from $8.9 billion at December31, 2020, and increased $98.2 million from $8.5 billion at March31, 2020. At March31, 2021, total loans and leases were $7.3 billion, representing a decrease of $2.0 million from December31, 2020, and an increase of $445.0 million from March31, 2020.

On December 27, 2020, the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (the Economic Aid Act) was signed into law. The Economic Aid Act created a new round of Paycheck Protection Program (PPP) loans administered by the Small Business Administration (SBA). The Company participated in the new round of PPP lending and, as of March31, 2021, has funded 1,342 PPP loans totaling $249.5 million. The Company funded 2,922 PPP loans totaling $581.7 million in the first two rounds of PPP funding which closed on August 8, 2020, of which $355.3 million remains outstanding, net of deferred fees and costs, at March31, 2021.

Total investment securities at March31, 2021 decreased $15.9 million to $730.4 million from $746.3 million at December31, 2020, and decreased $33.7 million from $764.1 million at March31, 2020. Total cash and cash equivalents at March31, 2021 decreased $304.0 million to $130.9 million from $434.9 million at December31, 2020, and decreased $209.8 million from $340.8 million at March31, 2020. As of March31, 2021, total investment securities and total cash and cash equivalents represented 10.1 percent of total assets as compared to 13.2 percent and 13.1 percent as of December31, 2020 and March31, 2020, respectively.

Total deposits at March31, 2021 decreased $43.9 million to $6.87 billion from $6.91 billion at December31, 2020 and increased $1.0 billion from $5.9 billion at March31, 2020.

Total borrowed funds at March31, 2021 decreased $274.2 million to $546.0 million from $820.2 million at December31, 2020 and decreased $745.8 million from $1.3 billion at March31, 2020.

The ratio of stockholders equity to total assets was 11.04 percent at March31, 2021, as compared to 10.53 percent at December31, 2020, and 10.78 percent at March31, 2020. The ratio of tangible stockholders equity to tangible assets (non-GAAP) was 9.31 percent at March31, 2021, as compared to 8.86 percent at December31, 2020, and 9.02 percent at March31, 2020. Tangible book value per share (non-GAAP) increased $0.05 from $9.96 at December31, 2020 to $10.01 at March31, 2021, compared to $9.49 at March31, 2020.

NET INTEREST INCOME

Net interest income increased $0.9 million to $69.1 million during the first quarter of 2021 from $68.2 million at the quarter ended December31, 2020. The net interest margin increased 16 basis points to 3.39 percent for the three months ended March31, 2021 from 3.23 percent for the three months ended December31, 2020.

NON-INTEREST INCOME

Total non-interest income for the quarter ended March31, 2021 increased $0.6 million to $4.8 million from $4.2 million for the quarter ended December31, 2020. The increase was primarily driven by an increase of $0.6 million in gain on sales of loans and leases and an increase of $0.3 million in loan level derivative income, net, partially offset by a decrease of $0.3 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 March31, 2021, compared to a negative provision for credit losses of $2.1 million for the quarter ended December31, 2020.

Total net charge-offs for the first quarter of 2021 were $1.8 million compared to $4.4 million in the fourth quarter of 2020. The decrease is primarily driven by a decrease of $3.4 million in the net charge-offs of commercial real estate loans, partially offset by an increase in the net charge-offs of commercial loans and equipment financing of $0.3 million and $0.5 million, respectively. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis decreased to 10 basis points for the first quarter of 2021 from 24 basis points for the fourth quarter of 2020.

The allowance for loan and lease losses represented 1.51 percent of total loans and leases at March31, 2021, compared to 1.57 percent at December31, 2020, and 1.66 percent at March31, 2020. Excluding PPP loans, the allowance for loan and lease losses represents 1.65 percent coverage at March31, 2021 compared to 1.69 percent at December31, 2020.

ASSET QUALITY

The ratio of nonperforming loans and leases to total loans and leases was 0.43 percent at March31, 2021, a decrease from 0.53 percent at December31, 2020. Total nonaccrual loans and leases decreased $7.4 million to $31.0 million at March31, 2021 from $38.4 million at December31, 2020. The ratio of nonperforming assets to total assets was 0.44 percent at March31, 2021, a decrease from 0.50 percent at December31, 2020. Total nonperforming assets decreased $7.6 million to $37.4 million at March31, 2021 from $45.0 million at December31, 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 March31, 2021, approximately 88 percent of loans granted an initial loan payment deferral have returned to payment status and 341 credits totaling $126 million or 1.7 percent of total loans outstanding are operating under modified terms.

NON-INTEREST EXPENSE

Non-interest expense for the quarter ended March31, 2021 increased $0.8 million to $40.8 million from $40.0 million for the quarter ended December31, 2020. The increase was primarily driven by increases of $0.8 million in compensation and employee benefits expense, $0.3 million in equipment and data processing, $0.2 million in occupancy and $0.2 million in other non-interest expense, partially offset by decreases of $0.6 million in FDIC insurance expense and $0.1 million in professional services.

PROVISION FOR INCOME TAXES

The effective tax rate was 24.9 percent for the three months ended March31, 2021 compared to 22.7 percent for the three months ended December31, 2020 and 27.5 percent for the three months ended March31, 2020.

RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

The annualized return on average assets increased to 1.21 percent during the first quarter 2021 from 1.20 percent for the fourth quarter of 2020.

The annualized return on average stockholders' equity decreased to 11.18 percent during the first quarter of 2021 from 11.38 percent for the fourth quarter of 2020. The annualized return on average tangible stockholders equity decreased to 13.51 percent for the first quarter of 2021 from 13.79 percent for the fourth quarter of 2020.

DIVIDEND DECLARED

The Companys Board of Directors approved a dividend of $0.12 per share for the quarter ended March31, 2021, an increase of half a cent from the prior period. The dividend will be paid on May 28, 2021 to stockholders of record on May 14, 2021, representing an increase of 4.3 percent from the prior quarter.

CONFERENCE CALL

The Company will conduct a conference call/webcast at 1:30 PM Eastern Daylight Time on Thursday, April 29, 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/brkl210429.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 Companys website under Investor Relations or by dialing 877-344-7529 (United States) or 412-317-0088 (internationally) and entering the passcode: 10154349.

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.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, continued deterioration in employment levels, 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 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, the allowance for loan and lease losses related to originated loans and leases as a percentage of originated loans and leases, tangible book value per common share, tangible stockholders equity to tangible assets, return on average tangible assets (annualized) and return on average tangible stockholders' equity (annualized). These non-GAAP financial measures provide information for investors to effectively analyze financial trends of ongoing business activities, and to enhance comparability with peers across the financial services sector. A detailed reconciliation table of the Company's GAAP to the non-GAAP measures is attached.

INVESTOR RELATIONS:

Contact: Carl M. CarlsonBrookline 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 March 31, December 31, September 30, June 30, 2020 March 31, 2021 2020 2020 2020 (Dollars In Thousands Except per Share Data)Earnings Data: Net interest $ 69,109 $ 68,225 $ 65,938 $ 64,288 $ 61,712 income(Credit)provision for (2,147 ) (2,103 ) 4,528 5,347 54,114 credit lossesNon-interest 4,794 4,219 4,862 6,235 9,328 incomeNon-interest 40,811 40,038 40,947 39,109 40,748 expenseIncome (loss)before 35,239 34,509 25,325 26,067 (23,822 )provision forincome taxesNet income(loss)attributable 26,454 26,663 18,679 19,571 (17,276 )to BrooklineBancorp, Inc. Performance Ratios:Net interest 3.39 % 3.23 % 3.08 % 3.09 % 3.31 %margin (1)Interest-rate 3.15 % 3.03 % 2.85 % 2.75 % 2.91 %spread (1)Return on )average assets 1.21 % 1.20 % 0.83 % 0.88 % (0.87 %(annualized)Return onaveragetangible 1.24 % 1.22 % 0.84 % 0.90 % (0.89 )assets %(annualized)(non-GAAP)Return onaverage )stockholders' 11.18 % 11.38 % 7.99 % 8.45 % (7.30 %equity(annualized)Return onaveragetangible )stockholders' 13.51 % 13.79 % 9.70 % 10.28 % (8.84 %equity(annualized)(non-GAAP)Efficiency 55.22 % 55.27 % 57.83 % 55.46 % 57.36 %ratio (2) Per Common Share Data:Net income $ 0.34 $ 0.34 $ 0.24 $ 0.25 $ (0.22 )(loss) ? BasicNet income(loss) ? 0.34 0.34 0.24 0.25 (0.22 )DilutedCash dividends 0.120 0.115 0.115 0.115 0.115 declaredBook value pershare (end of 12.10 12.05 11.84 11.75 11.57 period)Tangible bookvalue pershare (end of 10.01 9.96 9.77 9.67 9.49 period)(non-GAAP)Stock price(end of 15.00 12.04 8.65 10.08 11.28 period) Balance Sheet: Total assets $ 8,559,810 $ 8,942,424 $ 9,000,192 $ 9,069,667 $ 8,461,591 Total loans 7,267,552 7,269,553 7,396,358 7,407,697 6,822,527 and leasesTotal deposits 6,866,786 6,910,696 6,792,523 6,440,233 5,889,938 BrooklineBancorp, Inc. 945,399 941,778 935,558 926,413 912,568 stockholders?equity Asset Quality: Nonperforming $ 37,403 $ 44,963 $ 39,365 $ 42,754 $ 41,122 assetsNonperformingassets as a 0.44 % 0.50 % 0.44 % 0.47 % 0.49 %percentage oftotal assetsAllowance forloan and lease $ 109,837 $ 114,379 $ 119,971 $ 119,553 $ 113,181 lossesAllowance forloan and leaselosses as a 1.51 % 1.57 % 1.62 % 1.61 % 1.66 %percentage oftotal loansand leasesNet loan andlease $ 1,760 $ 4,381 $ 4,963 $ 1,383 $ 2,234 charge-offsNet loan andleasecharge-offs asa percentage 0.10 % 0.24 % 0.27 % 0.08 % 0.13 %of averageloans andleases(annualized) Capital Ratios:Stockholders?equity to 11.04 % 10.53 % 10.39 % 10.21 % 10.78 %total assetsTangiblestockholders?equity to 9.31 % 8.86 % 8.73 % 8.56 % 9.02 %tangibleassets(non-GAAP) (1) Calculatedon a fully tax-equivalentbasis.(2) Calculatedasnon-interestexpense as apercentage of net interestincome plusnon-interestincome.

BROOKLINE BANCORP, INC. AND SUBSIDIARIESConsolidated Balance Sheets (Unaudited)

March 31, December 31, September 30, June 30, 2020 March 31, 2021 2020 2020 2020ASSETS (In Thousands Except Share Data)Cash and due from $ 41,284 $ 36,069 $ 33,818 $ 38,522 $ 86,996 banksShort-term 89,643 398,848 283,515 216,394 253,772 investmentsTotal cash and 130,927 434,917 317,333 254,916 340,768 cash equivalentsInvestmentsecurities 729,901 745,822 783,867 854,505 761,539 available-for-saleInvestmentsecurities - - - - - held-to-maturityEquity securities 518 526 525 1,992 2,558 held-for-tradingTotal investment 730,419 746,348 784,392 856,497 764,097 securitiesLoans and leases: Commercial real 3,790,341 3,823,826 3,835,372 3,837,703 3,762,158 estate loansCommercial loans 2,324,202 2,274,899 2,354,613 2,361,463 1,826,866 and leasesConsumer loans 1,153,009 1,170,828 1,206,373 1,208,531 1,233,503 Total loans and 7,267,552 7,269,553 7,396,358 7,407,697 6,822,527 leasesAllowance for loan (109,837 ) (114,379 ) (119,971 ) (119,553 ) (113,181 )and lease lossesNet loans and 7,157,715 7,155,174 7,276,387 7,288,144 6,709,346 leasesRestricted equity 40,400 49,786 61,715 71,638 68,472 securitiesPremises andequipment, net of 72,524 71,568 72,441 73,127 73,786 accumulateddepreciationRight-of-use asset 23,180 24,143 23,492 24,343 24,789 operating leasesDeferred tax asset 42,857 40,129 42,269 42,683 38,141 Goodwill 160,427 160,427 160,427 160,427 160,427 Identifiedintangible assets, 2,920 3,152 3,464 3,775 4,087 net of accumulatedamortizationOther real estateowned and 6,383 6,515 1,413 1,454 2,038 repossessed assetsOther assets 192,058 250,265 256,859 292,663 275,640 Total assets $ 8,559,810 $ 8,942,424 $ 9,000,192 $ 9,069,667 $ 8,461,591 LIABILITIES ANDSTOCKHOLDERS' EQUITYDeposits: Demand checking $ 1,724,170 $ 1,592,205 $ 1,550,267 $ 1,603,037 $ 1,175,329 accountsNOW accounts 481,988 513,948 459,902 417,622 361,854 Savings accounts 724,504 701,659 716,630 657,758 653,026 Money market 2,192,468 2,018,977 1,878,258 1,809,868 1,676,092 accountsCertificate of 1,273,105 1,389,998 1,492,913 1,601,768 1,669,509 deposit accountsBrokered deposit 470,551 693,909 694,553 350,180 354,128 accountsTotal deposits 6,866,786 6,910,696 6,792,523 6,440,233 5,889,938 Borrowed funds: Advances from the 378,646 648,849 841,169 1,267,570 1,137,431 FHLBBSubordinateddebentures and 83,783 83,746 83,707 83,668 83,630 notesOther borrowed 83,574 87,652 80,169 55,431 70,743 fundsTotal borrowed 546,003 820,247 1,005,045 1,406,669 1,291,804 fundsOperating lease 23,180 24,143 23,492 24,343 24,789 liabilitiesMortgagors? escrow 6,483 5,901 6,429 6,467 7,441 accountsReserve for 13,705 13,071 13,964 14,816 17,222 unfunded creditsAccrued expensesand other 158,254 226,588 223,181 250,726 317,829 liabilitiesTotal liabilities 7,614,411 8,000,646 8,064,634 8,143,254 7,549,023 Stockholders' equity:Brookline Bancorp,Inc. stockholders? equity:Common 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 737,882 737,178 736,294 738,155 737,422 capitalRetained earnings,partially 282,301 264,892 247,336 237,808 227,359 restrictedAccumulated othercomprehensive 2,082 16,490 18,782 19,538 16,947 incomeTreasury stock, at cost;6,534,602,6,525,783,5,629,854, (77,463 ) (77,343 ) (67,376 ) (69,572 ) (69,617 )5,859,708, and5,862,811 shares,respectivelyUnallocated commonstock held by the Employee StockOwnership Plan;44,502, 51,114,58,227, 65,334, (255 ) (291 ) (330 ) (368 ) (395 )and 72,441 shares,respectivelyTotalstockholders' 945,399 941,778 935,558 926,413 912,568 equityTotal liabilitiesand stockholders' $ 8,559,810 $ 8,942,424 $ 9,000,192 $ 9,069,667 $ 8,461,591 equity

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

Three Months Ended March 31, 2021 December 31, September 30, June 30, 2020 March 31, 2020 2020 2020 (In Thousands Except Share Data)Interest anddividend income:Loans and $ 75,009 $ 76,583 $ 76,240 $ 77,416 $ 79,559 leasesDebt 3,118 3,335 3,746 3,701 2,976 securitiesMarketableandrestricted 301 490 672 908 778 equitysecuritiesShort-term 39 59 46 99 209 investmentsTotalinterest and 78,467 80,467 80,704 82,124 83,522 dividendincomeInterest expense:Deposits 6,707 8,825 10,583 12,778 16,240 Borrowed 2,651 3,417 4,183 5,058 5,570 fundsTotalinterest 9,358 12,242 14,766 17,836 21,810 expenseNet interest 69,109 68,225 65,938 64,288 61,712 income(Credit)provision for (2,147 ) (2,103 ) 4,528 5,347 54,114 credit lossesNet interestincome after 71,256 70,328 61,410 58,941 7,598 provision forcredit lossesNon-interest income:Deposit fees 2,281 2,358 2,305 1,929 2,458 Loan fees 599 588 397 513 550 Loan levelderivative 474 145 527 1,440 2,156 income, net(Loss) gainon investment (7 ) - 54 586 1,330 securities,netGain on salesof loans and 709 67 632 299 120 leasesheld-for-saleOther 738 1,061 947 1,468 2,714 Totalnon-interest 4,794 4,219 4,862 6,235 9,328 incomeNon-interest expense:Compensationand employee 25,821 25,054 26,092 24,619 25,219 benefitsOccupancy 4,004 3,806 3,802 3,825 3,953 Equipment anddata 4,493 4,193 4,293 4,155 4,703 processingProfessional 1,226 1,338 1,112 1,056 1,651 servicesFDIC 1,044 1,630 1,363 858 378 insuranceAdvertising 1,100 1,010 1,024 1,017 1,075 and marketingAmortizationof identified 232 312 312 311 336 intangibleassetsOther 2,891 2,695 2,949 3,268 3,433 Totalnon-interest 40,811 40,038 40,947 39,109 40,748 expenseIncome (loss)before 35,239 34,509 25,325 26,067 (23,822 )provision forincome taxesProvision(benefit) for 8,785 7,846 6,646 6,496 (6,546 )income taxesNet income(loss)attributable $ 26,454 $ 26,663 $ 18,679 $ 19,571 $ (17,276 )to BrooklineBancorp, Inc.Earnings per common share:Basic $ 0.34 $ 0.34 $ 0.24 $ 0.25 $ (0.22 )Diluted $ 0.34 $ 0.34 $ 0.24 $ 0.25 $ (0.22 )Weighted average common shares outstanding during the period:Basic 78,143,752 78,533,351 78,948,139 78,849,282 79,481,462 Diluted 78,404,063 78,680,873 79,055,901 79,015,274 79,665,774 Dividendspaid per $ 0.115 $ 0.115 $ 0.115 $ 0.115 $ 0.115 common share

BROOKLINE BANCORP, INC. AND SUBSIDIARIESAsset Quality Analysis (Unaudited)

At and for the Three Months Ended March 31, December 31, September 30, June 30, 2020 March 31, 2021 2020 2020 2020 (Dollars in Thousands)NONPERFORMING ASSETS:Loans andleasesaccounted for on anonaccrualbasis:Commercialreal estate $ 3,611 $ 3,300 $ 10,841 $ 10,139 $ 10,937 mortgageMulti-family - - - - 85 mortgageConstruction 3,853 3,853 - - - Totalcommercial 7,464 7,153 10,841 10,139 11,022 real estateloans Commercial 3,161 7,702 7,751 12,427 12,991 Equipment 15,772 16,757 13,372 13,100 10,356 financingCondominium 106 112 117 190 203 associationTotalcommercial 19,039 24,571 21,240 25,717 23,550 loans andleases Residential 3,722 5,587 4,634 4,157 3,446 mortgageHome equity 793 1,136 1,235 1,278 1,059 Other consumer 2 1 2 9 7 Total consumer 4,517 6,724 5,871 5,444 4,512 loans Totalnonaccrual 31,020 38,448 37,952 41,300 39,084 loans andleases Other real 5,328 5,415 - - - estate ownedOtherrepossessed 1,055 1,100 1,413 1,454 2,038 assetsTotalnonperforming $ 37,403 $ 44,963 $ 39,365 $ 42,754 $ 41,122 assets Loans andleases pastdue greater $ 1,179 $ 11,975 $ 1,180 $ 1,974 $ 1,045 than 90 daysand stillaccruing Troubled debtrestructurings 16,770 11,483 11,309 10,172 16,480 on accrualTroubled debtrestructurings 6,293 7,476 5,742 5,972 5,819 on nonaccrualTotal troubleddebt $ 23,063 $ 18,959 $ 17,051 $ 16,144 $ 22,299 restructurings Nonperformingloans andleases as a 0.43 % 0.53 % 0.51 % 0.56 % 0.57 %percentage oftotal loansand leasesNonperformingassets as a 0.44 % 0.50 % 0.44 % 0.47 % 0.49 %percentage oftotal assets PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:Allowance forloan and leaselosses at $ 114,379 $ 119,971 $ 119,553 $ 113,181 $ 61,082 beginning ofperiodCECLadjustment to - - - - 6,632 retainedearningsCharge-offs (2,143 ) (4,810 ) (5,511 ) (1,803 ) (2,539 )Recoveries 383 429 548 420 305 Net (1,760 ) (4,381 ) (4,963 ) (1,383 ) (2,234 )charge-offsProvision forloan and leaselosses (2,782 ) (1,211 ) 5,381 7,755 47,701 excludingunfundedcommitments *Allowance forloan and lease $ 109,837 $ 114,379 $ 119,971 $ 119,553 $ 113,181 losses at endof period Allowance forloan and leaselosses as a 1.51 % 1.57 % 1.62 % 1.61 % 1.66 %percentage oftotal loansand leases NET CHARGE-OFFS:Commercialreal estate $ - $ 3,444 $ 70 $ (94 ) $ - loansCommercialloans and 1,809 1,011 4,917 1,498 2,280 leasesConsumer loans (49 ) (74 ) (24 ) (21 ) (46 )Total net $ 1,760 $ 4,381 $ 4,963 $ 1,383 $ 2,234 charge-offs Net loan andleasecharge-offs asa percentage 0.10 % 0.24 % 0.27 % 0.08 % 0.13 %of averageloans andleases(annualized) *Provision for loan and lease losses does not include provision (credit) of$0.6 million, $(0.9) million, $(0.9) million, $2.4 million and $6.4 million forcredit losses on unfunded commitments during the three months ended March 31,2021, 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 March 31, 2021 December 31, 2020 March 31, 2020 Average Interest Average Average Interest Average Average Interest Average Balance (1) Yield/ Balance (1) Yield/ Balance (1) Yield/ Cost Cost Cost (Dollars in Thousands)Assets: Interest-earning assets:Investments: Debt securities (2) $ 754,699 $ 3,118 1.65 % $ 770,414 $ 3,334 1.73 % $ 605,885 $ 3,024 2.00 %Marketable andrestricted equity 45,673 301 2.64 % 51,469 491 3.81 % 58,881 786 5.33 %securities (2)Short-term 191,751 39 0.08 % 223,665 59 0.10 % 84,309 209 0.99 %investmentsTotal investments 992,123 3,458 1.39 % 1,045,548 3,884 1.49 % 749,075 4,019 2.15 %Loans and Leases: Commercial real 3,785,897 34,245 3.62 % 3,833,172 35,526 3.63 % 3,697,011 40,468 4.33 %estate loans (3)Commercial loans (3) 1,249,824 12,746 4.08 % 1,260,883 11,936 3.71 % 783,309 8,328 4.21 %Equipment financing 1,079,039 18,043 6.69 % 1,086,855 18,626 6.86 % 1,052,846 18,946 7.20 %(3)Residential mortgage 780,785 7,232 3.71 % 803,884 7,530 3.75 % 810,583 7,934 3.92 %loans (3)Other consumer loans 375,590 2,795 3.02 % 385,818 3,020 3.10 % 417,815 3,955 3.79 %(3)Total loans and 7,271,135 75,061 4.13 % 7,370,612 76,638 4.16 % 6,761,564 79,631 4.71 %leasesTotalinterest-earning 8,263,258 78,519 3.80 % 8,416,160 80,522 3.83 % 7,510,639 83,650 4.46 %assetsNon-interest-earning 450,900 458,307 455,187 assetsTotal assets $ 8,714,158 $ 8,874,467 $ 7,965,826 Liabilities andStockholders' Equity:Interest-bearing liabilities:Deposits: NOW accounts $ 477,893 130 0.11 % $ 451,014 126 0.11 % $ 359,641 116 0.13 %Savings accounts 712,728 235 0.13 % 701,378 245 0.14 % 626,945 643 0.41 %Money market 2,084,503 1,486 0.29 % 1,947,686 1,546 0.32 % 1,678,649 4,241 1.02 %accountsCertificates of 1,328,112 4,154 1.27 % 1,452,867 5,718 1.57 % 1,682,900 9,251 2.21 %depositBrokered deposit 610,824 702 0.47 % 746,281 1,190 0.63 % 358,003 1,989 2.23 %accountsTotalinterest-bearing 5,214,060 6,707 0.52 % 5,299,226 8,825 0.66 % 4,706,138 16,240 1.39 %depositsBorrowings Advances from the 488,537 1,370 1.12 % 619,844 2,118 1.34 % 772,462 4,097 2.10 %FHLBBSubordinated 83,764 1,242 5.93 % 83,725 1,245 5.95 % 83,609 1,284 6.14 %debentures and notesOther borrowed funds 92,391 39 0.17 % 81,320 54 0.26 % 91,052 189 0.84 %Total borrowings 664,692 2,651 1.60 % 784,889 3,417 1.70 % 947,123 5,570 2.33 %Totalinterest-bearing 5,878,752 9,358 0.65 % 6,084,115 12,242 0.80 % 5,653,261 21,810 1.55 %liabilitiesNon-interest-bearing liabilities:Demand checking 1,643,373 1,587,618 1,134,314 accountsOthernon-interest-bearing 245,551 265,440 232,113 liabilitiesTotal liabilities 7,767,676 7,937,173 7,019,688 Stockholders? equity 946,482 937,294 946,138 Total liabilities $ 8,714,158 $ 8,874,467 $ 7,965,826 and equityNet interest income(tax-equivalentbasis) / 69,161 3.15 % 68,280 3.03 % 61,840 2.91 %Interest-rate spread(4)Less adjustment of 52 55 128 tax-exempt incomeNet interest income $ 69,109 $ 68,225 $ 61,712 Net interest margin 3.39 % 3.23 % 3.31 %(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 on an actual/actual basis.

BROOKLINE BANCORP, INC. AND SUBSIDIARIESNon-GAAP Financial Information (Unaudited) At and for the Three Months Ended March 31, 2021 2020 Reconciliation Table - (Dollars in Thousands ExceptNon-GAAP Financial Share Data)Information Net income attributable to $ 26,454 $ (17,276 )Brookline Bancorp, Inc.Less: Security gains (losses) (5 ) 964 (after-tax)Operating $ 26,459 $ (18,240 )earnings Operatingearnings per common share:Basic $ 0.34 $ (0.23 )Diluted 0.34 (0.23 ) Weighted average commonshares outstanding during the period:Basic 78,143,752 79,481,462 Diluted 78,404,063 79,665,774 Return on average assets * 1.21 % (0.87 ) %Less: Security gains (losses) - % 0.05 %(after-tax) *Operating return on average 1.21 % (0.92 )assets * % Return on average tangible 1.24 % (0.89 )assets * %Less: Security gains (losses) - % 0.05 %(after-tax) *Operating return on average 1.24 % (0.94 )tangible assets * % Return on average 11.18 % (7.30 )stockholders' equity * %Less: Security gains (losses) - % 0.41 %(after-tax) *Operating return on average 11.18 % (7.71 )stockholders' equity * % Return on average tangible 13.51 % (8.84 )stockholders' equity * %Less: Security gains (losses) - % 0.49 %(after-tax) *Operating return on average )tangible stockholders' 13.51 % (9.33 %equity * * Ratios at and for thethree months ended are annualized. At and for the Three Months Ended March 31, 2021 December 31, September 30, June 30, 2020 March 31, 2020 2020 2020 (Dollars in Thousands) Net income(loss), as $ 26,454 $ 26,663 $ 18,679 $ 19,571 $ (17,276 )reported Average total $ 8,714,158 $ 8,874,467 $ 9,018,672 $ 8,869,540 $ 7,965,826 assetsLess: Averagegoodwill andaverage 163,457 163,758 164,072 164,385 164,701 identifiedintangibleassets, netAveragetangible $ 8,550,701 $ 8,710,709 $ 8,854,600 $ 8,705,155 $ 7,801,125 assets Return onaverage )tangible 1.24 % 1.22 % 0.84 % 0.90 % (0.89 %assets(annualized) Average totalstockholders? $ 946,482 $ 937,294 $ 934,632 $ 926,239 $ 946,138 equityLess: Averagegoodwill andaverage 163,457 163,758 164,072 164,385 164,701 identifiedintangibleassets, netAveragetangible $ 783,025 $ 773,536 $ 770,560 $ 761,854 $ 781,437 stockholders?equity Return onaveragetangible 13.51 % 13.79 % 9.70 % 10.28 % (8.84 )stockholders? %equity(annualized) BrooklineBancorp, Inc. $ 945,399 $ 941,778 $ 935,558 $ 926,413 $ 912,568 stockholders?equityLess: Goodwill 160,427 160,427 160,427 160,427 160,427 Identifiedintangible 2,920 3,152 3,464 3,775 4,087 assets, netTangiblestockholders' $ 782,052 $ 778,199 $ 771,667 $ 762,211 $ 748,054 equity Total assets $ 8,559,810 $ 8,942,424 $ 9,000,192 $ 9,069,667 $ 8,461,591 Less: Goodwill 160,427 160,427 160,427 160,427 160,427 Identifiedintangible 2,920 3,152 3,464 3,775 4,087 assets, netTangible $ 8,396,463 $ 8,778,845 $ 8,836,301 $ 8,905,465 $ 8,297,077 assets Tangiblestockholders?equity to 9.31 % 8.86 % 8.73 % 8.56 % 9.02 %tangibleassets Tangiblestockholders' $ 782,052 $ 778,199 $ 771,667 $ 762,211 $ 748,054 equity Number ofcommon shares 85,177,172 85,177,172 85,177,172 85,177,172 85,177,172 issuedLess: Treasury 6,534,602 6,525,783 5,629,854 5,859,708 5,862,811 sharesUnallocated 44,502 51,114 58,227 65,334 72,441 ESOP sharesUnvestedrestricted 449,981 458,800 487,318 398,188 395,085 sharesNumber ofcommon shares 78,148,087 78,141,475 79,001,773 78,853,942 78,846,835 outstanding Tangible bookvalue per $ 10.01 $ 9.96 $ 9.77 $ 9.67 $ 9.49 common share Allowance forloan and $ 109,837 $ 114,379 $ 119,971 $ 119,553 $ 113,181 lease losses Total loans $ 7,267,552 $ 7,269,553 $ 7,396,358 $ 7,407,697 $ 6,822,527 and leasesLess: Total PPP 604,790 489,216 568,383 565,768 - loansTotal loansand leases $ 6,662,762 $ 6,780,337 $ 6,827,975 $ 6,841,929 $ 6,822,527 excluding PPPloans Allowance forloan andlease lossesas apercentage of 1.65 % 1.69 % 1.76 % 1.75 % 1.66 %total loansand leasesless PPPloans