GlobeNewswire Inc | Jul 22, 2020 04:30PM EDT

July 22, 2020

Net Income of $19.6 million, EPS of $0.25

Announces $0.115 Dividend per Share

BOSTON, July 22, 2020 (GLOBE NEWSWIRE) -- Brookline Bancorp, Inc. (NASDAQ: BRKL) (the Company) today announced net income of $19.6 million, or $0.25 per basic and diluted share, for the second quarter of 2020, compared to net loss of $(17.3) million, or $(0.22) per basic and diluted share, for the first quarter of 2020, and net income of $20.5 million, or $0.26 per basic and diluted share, for the second quarter of 2019.

Paul Perrault, President and Chief Executive Officer of the Company noted, The continued strength of our Companys core operations is reflected in this quarters earnings. While we remain vigilant as we look to the future, the business lines that are fundamental to our success continue to operate effectively in these challenging times.

BALANCE SHEET

Total assets at June30, 2020 increased $608.1 million to $9.1 billion from $8.5 billion at March31, 2020, and increased $1.4 billion from $7.6 billion at June30, 2019. At June30, 2020, total loans and leases were $7.4 billion, representing an increase of $585.2 million from March31, 2020, and an increase of $902.4 million from June30, 2019, primarily driven by loans originated under the Small Business Administration's Paycheck Protection Program ("PPP"). The Company funded $565.8 million of PPP loans in the second quarter of 2020.

Total investment securities at June30, 2020 increased $92.4 million to $856.5 million, as compared to $764.1 million at March31, 2020, and increased approximately $265.7 million from $590.8 million at June30, 2019. Total cash and cash equivalents at June30, 2020 decreased $85.9 million to $254.9 million, as compared to $340.8 million at March31, 2020, and increased $162.1 million from $92.8 million at June30, 2019. As of June30, 2020, total investment securities and total cash and cash equivalents represented 12.3 percent of total assets as compared to 13.1 percent and 9.0 percent as of March31, 2020 and June30, 2019, respectively.

Total deposits at June30, 2020 increased $550.3 million to $6.4 billion from $5.9 billion at March31, 2020 and increased $817.7 million from $5.6 billion at June30, 2019.

Total borrowed funds at June30, 2020 increased $114.9 million to $1.4 billion from $1.3 billion at March31, 2020 and increased $475.9 million from $930.8 million at June30, 2019.

The ratio of stockholders equity to total assets was 10.21 percent at June30, 2020, as compared to 10.78 percent at March31, 2020, and 12.03 percent at June30, 2019. The ratio of tangible stockholders equity to tangible assets was 8.56 percent at June30, 2020, as compared to 9.02 percent at March31, 2020, and 10.08 percent at June30, 2019. Tangible book value per share increased $0.18 from $9.49 at March31, 2020 to $9.67 at June30, 2020, compared to $9.45 at June30, 2019.

NET INTEREST INCOME

Net interest income increased $2.6 million to $64.3 million during the second quarter of 2020 from $61.7 million at the quarter ended March31, 2020. The net interest margin decreased 22 basis points to 3.09 percent for the three months ended June30, 2020.

NON-INTEREST INCOME

Total non-interest income for the quarter ended June30, 2020 decreased $3.1 million to $6.2 million from $9.3 million for the quarter ended March31, 2020. The decrease was primarily driven by decreases of $0.5 million in deposit fees, $0.7 million in loan level derivative income, net, $0.7 million in gain on investment securities, net and $1.2 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 provision for credit losses of $5.3 million for the quarter ended June30, 2020, compared to $54.1 million for the quarter ended March31, 2020. Asset quality was consistent during the second quarter and the increase in provision was primarily driven by the forecasted economic effect of the COVID-19 pandemic.

Total net charge-offs for the second quarter of 2020 were $1.4 million compared to $2.2 million in the first quarter of 2020. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis decreased to 8 basis points for the second quarter of 2020 from 13 basis points for the first quarter of 2020.

The allowance for loan and lease losses represented 1.61 percent of total loans and leases at June30, 2020, compared to 1.66 percent at March31, 2020, and 0.90 percent at June30, 2019. Excluding PPP loans, the allowance for loan losses and lease losses represents 1.75 percent coverage at June 30, 2020 compared to 1.66 percent at March 31, 2020.

NON-INTEREST EXPENSE

Non-interest expense for the quarter ended June30, 2020 decreased $1.6 million to $39.1 million from $40.7 million for the quarter ended March31, 2020. The decrease was primarily driven by decreases of $0.6 million in compensation and employee benefits expense, $0.5 million in equipment and data processing expense, and $0.5 million in professional services expense.

PROVISION FOR INCOME TAXES

The effective tax rate was 24.9 percent and a negative 2.2 percent for the three and six months ended June30, 2020 compared to 27.5 percent for the three months ended March31, 2020 and 24.9 percent and 24.1 percent for the three and six months ended June30, 2019.

RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

The annualized return on average assets increased to 0.88 percent during the second quarter 2020 from a negative 0.87 percent for the first quarter of 2020.

The annualized return on average stockholders' equity increased to 8.45 percent during the second quarter of 2020 from a negative 7.30 percent for the first quarter of 2020. The annualized return on average tangible stockholders equity increased to 10.28 percent for the second quarter of 2020 from a negative 8.84 percent for the first quarter of 2020.

ASSET QUALITY

The ratio of nonperforming loans and leases to total loans and leases was 0.56 percent at June30, 2020, a decrease from 0.57 percent at March31, 2020. Nonperforming loans and leases increased $2.2 million to $41.3 million at June30, 2020 from $39.1 million at March31, 2020. The ratio of nonperforming assets to total assets was 0.47 percent at June30, 2020, a decrease from 0.49 percent at March31, 2020. Nonperforming assets increased $1.6 million to $42.8 million at June30, 2020 from $41.1 million at March31, 2020.

From March 1, 2020 through the earlier of December 31, 2020 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 June30, 2020, the banks have granted 5,366 short-term deferments on loan balances of $1.2 billion, which represented 16 percent of total loan balances.

DIVIDEND DECLARED

The Companys Board of Directors approved a dividend of $0.115 per share for the quarter ended June30, 2020. The dividend will be paid on August 21, 2020 to stockholders of record on August 7, 2020.

CONFERENCE CALL

The Company will conduct a conference call/webcast at 1:30 PM Eastern Daylight Time on Thursday, July 23, 2020 to discuss the results for the quarter, business highlights and outlook. The call can be accessed by dialing 877-504-4120 (United States) or 412-902-6650 (internationally) or by visiting https://services.choruscall.com/links/brkl200723.html. A recorded playback of the call will be available for one week following the call at 877-344-7529 (United States) or 412-317-0088 (internationally). The passcode for the playback is 10145885. The call will be available live and in a recorded version on the Companys website under Investor Relations at www.brooklinebancorp.com.

ABOUT BROOKLINE BANCORP, INC.

Brookline Bancorp, Inc., a bank holding company with $9.1 billion in assets and branch locations in Massachusetts and Rhode Island, is headquartered in Boston, Massachusetts and operates as the holding company for Brookline Bank and Bank Rhode Island (the "banks"). The Company provides commercial and retail banking services, cash management and investment services to customers throughout Central New England. More information about Brookline Bancorp, Inc. and its banks can be found at the following websites: www.brooklinebank.com and www.bankri.com.

FORWARD-LOOKING STATEMENTS

Certain statements contained in this press release that are not historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements contained in this press release that do not describe historical or current facts are forward-looking statements, including statements regard the potential effects of COVID-19 on the 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 operates; the possibility that future credit losses may be higher than currently expected; 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:

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

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

At and for the Three Months Ended June 30, 2020 March 31, December 31, September 30, June 30, 2019 2020 2019 2019 (Dollars In Thousands Except per Share Data)Earnings Data:Net interest $ 64,288 $ 61,712 $ 63,931 $ 63,236 $ 63,134 incomeProvision for 5,347 54,114 3,602 871 3,757 credit lossesNon-interest 6,235 9,328 7,756 7,929 7,478 incomeNon-interest 39,109 40,748 38,815 40,191 39,604 expenseIncome (loss)before 26,067 (23,822 ) 29,270 30,103 27,251 provision forincome taxesNet income(loss)attributable 19,571 (17,276 ) 22,183 22,596 20,471 to BrooklineBancorp, Inc. Performance Ratios:Net interest 3.09 % 3.31 % 3.43 % 3.45 % 3.55 %margin (1)Interest-rate 2.75 % 2.91 % 3.05 % 3.06 % 3.13 %spread (1)Return onaverage 0.88 % (0.87 ) 1.13 % 1.17 % 1.08 %assets %(annualized)Return onaveragetangible 0.90 % (0.89 ) 1.15 % 1.19 % 1.11 %assets %(annualized)(non-GAAP)Return onaverage )stockholders' 8.45 % (7.30 % 9.42 % 9.74 % 8.98 %equity(annualized)Return onaveragetangible )stockholders' 10.28 % (8.84 % 11.42 % 11.85 % 10.98 %equity(annualized)(non-GAAP)Efficiency 55.46 % 57.36 % 54.15 % 56.48 % 56.09 %ratio (2) Per Common Share Data:Net income(loss) ? $ 0.25 $ (0.22 ) $ 0.28 $ 0.28 $ 0.26 BasicNet income(loss) ? 0.25 (0.22 ) 0.28 0.28 0.26 DilutedCashdividends 0.115 0.115 0.115 0.115 0.110 declaredBook valueper share 11.75 11.57 11.87 11.70 11.53 (end ofperiod)Tangible bookvalue pershare (end of 9.67 9.49 9.80 9.63 9.45 period)(non-GAAP)Stock price(end of 10.08 11.28 16.46 14.73 15.38 period)Balance Sheet:Total assets $ 9,069,667 $ 8,461,591 $ 7,856,853 $ 7,878,436 $ 7,636,980 Total loans 7,407,697 6,822,527 6,737,816 6,646,821 6,505,329 and leasesTotal 6,440,233 5,889,938 5,830,072 5,729,339 5,622,493 depositsBrooklineBancorp, Inc. 926,413 912,568 945,606 932,311 918,468 stockholders?equity Asset Quality:Nonperforming $ 42,754 $ 41,122 $ 22,092 $ 23,760 $ 23,267 assetsNonperformingassets as a 0.47 % 0.49 % 0.28 % 0.30 % 0.30 %percentage oftotal assetsAllowance forloan and $ 119,553 $ 113,181 $ 61,082 $ 59,135 $ 58,635 lease lossesAllowance forloan andlease lossesas a 1.61 % 1.66 % 0.91 % 0.89 % 0.90 %percentage oftotal loansand leasesNet loan andlease $ 1,383 $ 2,234 $ 1,622 $ 366 $ 3,082 charge-offsNet loan andleasecharge-offsas a 0.08 % 0.13 % 0.10 % 0.02 % 0.19 %percentage ofaverage loansand leases(annualized) Capital Ratios:Stockholders?equity to 10.21 % 10.78 % 12.04 % 11.83 % 12.03 %total assetsTangiblestockholders?equity to 8.56 % 9.02 % 10.15 % 9.94 % 10.08 %tangibleassets(non-GAAP)

(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 SUBSIDIARIESConsolidated Balance Sheets (Unaudited) June 30, 2020 March 31, December 31, September 30, June 30, 2019 2020 2019 2019ASSETS (In Thousands Except Share Data)Cash and due from $ 38,522 $ 86,996 $ 33,589 $ 93,841 $ 46,532 banksShort-term 216,394 253,772 44,201 84,689 46,264 investmentsTotal cash and 254,916 340,768 77,790 178,530 92,796 cash equivalentsInvestmentsecurities 854,505 761,539 498,995 467,339 482,497 available-for-saleInvestmentsecurities ? ? 86,780 95,163 103,572 held-to-maturityEquity securities 1,992 2,558 3,581 4,581 4,698 held-for-tradingTotal investment 856,497 764,097 589,356 567,083 590,767 securitiesLoans and leases ? ? ? ? 1,575 held-for-saleLoans and leases: Commercial real 3,837,703 3,762,158 3,669,222 3,589,451 3,493,554 estate loansCommercial loans 2,361,463 1,826,866 1,838,748 1,850,388 1,826,336 and leasesConsumer loans 1,208,531 1,233,503 1,229,846 1,206,982 1,185,439 Total loans and 7,407,697 6,822,527 6,737,816 6,646,821 6,505,329 leasesAllowance for loan (119,553 ) (113,181 ) (61,082 ) (59,135 ) (58,635 )and lease lossesNet loans and 7,288,144 6,709,346 6,676,734 6,587,686 6,446,694 leasesRestricted equity 71,638 68,472 53,818 57,896 55,270 securitiesPremises andequipment, net of 73,127 73,786 74,350 75,229 75,373 accumulateddepreciationRight-of-use asset 24,343 24,789 24,876 26,216 25,928 operating leasesDeferred tax asset 42,683 38,141 25,017 25,204 25,629 Goodwill 160,427 160,427 160,427 160,427 160,427 Identifiedintangible assets, 3,775 4,087 4,423 4,843 5,264 net of accumulatedamortizationOther real estateowned and 1,454 2,038 2,631 2,132 1,966 repossessed assetsOther assets 292,663 275,640 167,431 193,190 155,291 Total assets $ 9,069,667 $ 8,461,591 $ 7,856,853 $ 7,878,436 $ 7,636,980 LIABILITIES ANDSTOCKHOLDERS' EQUITYDeposits: Demand checking $ 1,603,037 $ 1,175,329 $ 1,141,578 $ 1,106,684 $ 1,042,854 accountsNOW accounts 417,622 361,854 371,380 340,321 340,082 Savings accounts 657,758 653,026 613,467 604,481 585,322 Money market 1,809,868 1,676,092 1,682,005 1,666,231 1,669,782 accountsCertificate of 1,951,948 2,023,637 2,021,642 2,011,622 1,984,453 deposit accountsTotal deposits 6,440,233 5,889,938 5,830,072 5,729,339 5,622,493 Borrowed funds: Advances from the 1,267,570 1,137,431 758,469 854,481 791,559 FHLBBSubordinateddebentures and 83,668 83,630 83,591 83,551 83,512 notesOther borrowed 55,431 70,743 60,689 48,373 55,693 fundsTotal borrowed 1,406,669 1,291,804 902,749 986,405 930,764 fundsOperating lease 24,343 24,789 24,876 26,216 25,928 liabilitiesMortgagors? escrow 6,467 7,441 7,232 7,072 6,823 accountsReserve for 14,816 17,222 1,880 1,847 1,841 unfunded creditsAccrued expensesand other 250,726 317,829 144,438 195,246 130,663 liabilitiesTotal liabilities 8,143,254 7,549,023 6,911,247 6,946,125 6,718,512 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 738,155 737,422 736,601 735,928 737,584 capitalRetained earnings,partially 237,808 227,359 265,376 252,435 238,625 restrictedAccumulated othercomprehensive 19,538 16,947 2,283 2,775 1,141 income (loss)Treasury stock, at cost;5,859,708,5,862,811,5,003,127, (69,572 ) (69,617 ) (59,073 ) (59,176 ) (59,199 )5,003,127, and5,025,764 shares,respectivelyUnallocated commonstock held by the Employee StockOwnership Plan;65,334, 72,44179,548, 92,337, (368 ) (395 ) (433 ) (503 ) (535 )and 98,208 shares,respectivelyTotalstockholders' 926,413 912,568 945,606 932,311 918,468 equityTotal liabilitiesand stockholders' $ 9,069,667 $ 8,461,591 $ 7,856,853 $ 7,878,436 $ 7,636,980 equity

BROOKLINE BANCORP, INC. AND SUBSIDIARIESConsolidated Statements of Income (Unaudited) Three Months Ended June 30, March 31, 2020 December 31, September 30, June 30, 2020 2019 2019 2019 (In Thousands Except Share Data)Interest anddividend income:Loans and $ 77,416 $ 79,559 $ 83,309 $ 83,566 $ 82,798leasesDebt 3,701 2,976 2,910 2,977 3,158securitiesMarketableandrestricted 908 778 813 876 877equitysecuritiesShort-term 99 209 418 487 351investmentsTotalinterest and 82,124 83,522 87,450 87,906 87,184dividendincomeInterest expense:Deposits 12,778 16,240 17,655 18,300 17,712Borrowed 5,058 5,570 5,864 6,370 6,338fundsTotalinterest 17,836 21,810 23,519 24,670 24,050expenseNet interest 64,288 61,712 63,931 63,236 63,134incomeProvision for 5,347 54,114 3,602 871 3,757credit lossesNet interestincome after 58,941 7,598 60,329 62,365 59,377provision forcredit lossesNon-interest income:Deposit fees 1,929 2,458 2,710 2,710 2,680Loan fees 513 550 567 719 398Loan levelderivative 1,440 2,156 2,494 2,251 1,772income, netGain (loss)on investment 586 1,330 133 (116 ) 357securities,netGain on salesof loans and 299 120 309 550 561leasesheld-for-saleOther 1,468 2,714 1,543 1,815 1,710Totalnon-interest 6,235 9,328 7,756 7,929 7,478incomeNon-interest expense:Compensationand employee 24,619 25,219 23,987 24,871 23,953benefitsOccupancy 3,825 3,953 4,102 3,895 3,752Equipment anddata 4,155 4,703 4,601 4,749 4,641processingProfessional 1,056 1,651 1,120 1,083 1,087servicesFDIC 858 378 53 54 745insuranceAdvertising 1,017 1,075 828 1,035 1,112and marketingAmortizationof identified 311 336 420 421 420intangibleassetsMerger andrestructuring ? ? ? 1,125 ?expenseOther 3,268 3,433 3,704 2,958 3,894Totalnon-interest 39,109 40,748 38,815 40,191 39,604expenseIncome (loss)before 26,067 (23,822 ) 29,270 30,103 27,251provision forincome taxesProvision(benefit) for 6,496 (6,546 ) 7,087 7,507 6,780income taxesNet income(loss)attributable $ 19,571 $ (17,276 ) $ 22,183 $ 22,596 $ 20,471to BrooklineBancorp, Inc.Earnings per common share:Basic $ 0.25 $ (0.22 ) $ 0.28 $ 0.28 $ 0.26Diluted $ 0.25 $ (0.22 ) $ 0.28 $ 0.28 $ 0.26Weighted average commonshares outstanding during the period:Basic 78,849,282 79,481,462 79,682,724 79,700,403 79,669,922Diluted 79,015,274 79,665,774 79,845,447 79,883,510 79,886,292Dividendspaid per $ 0.115 $ 0.115 $ 0.115 $ 0.110 $ 0.110common share

BROOKLINE BANCORP, INC. AND SUBSIDIARIESConsolidated Statements of Income (Unaudited) Six Months Ended June 30, 2020 2019 (In Thousands Except Share Data)Interest and dividend income: Loans and leases $ 156,975 $ 163,470Debt securities 6,677 6,394Marketable and restricted equity securities 1,686 1,788Short-term investments 308 618Total interest and dividend income 165,646 172,270Interest expense: Deposits 29,018 33,660Borrowed funds 10,628 12,477Total interest expense 39,646 46,137Net interest income 126,000 126,133Provision for credit losses 59,461 5,110Net interest income after provision for credit 66,539 121,023lossesNon-interest income: Deposit Fees 4,387 5,203Loan Fees 1,063 811Loan level derivative income, net 3,596 3,517Gain on investment securities, net 1,916 491Gain on sales of loans and leases held-for-sale 419 850Other 4,182 3,236Total non-interest income 15,563 14,108Non-interest expense: Compensation and employee benefits 49,838 47,696Occupancy 7,778 7,699Equipment and data processing 8,858 9,302Professional services 2,707 2,163FDIC insurance 1,236 1,338Advertising and marketing 2,092 2,181Amortization of identified intangible assets 647 822Other 6,701 7,274Total non-interest expense 79,857 78,475Income before provision for income taxes 2,245 56,656(Benefit) provision for income taxes (50 ) 13,675Net income before noncontrolling interest in 2,295 42,981subsidiaryLess net income attributable to noncontrolling ? 43interest in subsidiaryNet income attributable to Brookline Bancorp, $ 2,295 $ 42,938Inc.Earnings per common share: Basic $ 0.03 $ 0.54Diluted $ 0.03 $ 0.54Weighted average common shares outstanding during the period: Basic 79,165,372 79,664,284Diluted 79,340,524 79,859,572Dividends paid per common share $ 0.230 $ 0.215

BROOKLINE BANCORP, INC. AND SUBSIDIARIESAsset Quality Analysis (Unaudited) At and for the Three Months Ended June 30, March 31, December September June 30, 2020 2020 31, 2019 30, 2019 2019 (Dollars in Thousands)NONPERFORMING ASSETS:Loans andleasesaccounted for on anonaccrualbasis:Commercialreal estate $ 10,139 $ 10,937 $ 2,845 $ 2,910 $ 2,273 mortgageMulti-family ? 85 84 87 94 mortgageTotalcommercial 10,139 11,022 2,929 2,997 2,367 real estateloans Commercial 12,427 12,991 4,909 3,139 6,349 Equipment 13,100 10,356 9,822 12,817 9,931 financingCondominium 190 203 151 163 170 associationTotalcommercial 25,717 23,550 14,882 16,119 16,450 loans andleases Residential 4,157 3,446 753 1,605 1,642 mortgageHome equity 1,278 1,059 896 904 835 Other consumer 9 7 1 3 7 Total consumer 5,444 4,512 1,650 2,512 2,484 loans Totalnonaccrual 41,300 39,084 19,461 21,628 21,301 loans andleases Other real ? ? ? 201 957 estate ownedOtherrepossessed 1,454 2,038 2,631 1,931 1,009 assetsTotalnonperforming $ 42,754 $ 41,122 $ 22,092 $ 23,760 $ 23,267 assets Loans andleases pastdue greater $ 1,974 $ 1,045 $ 10,109 $ 11,885 $ 11,612 than 90 daysand stillaccruing Troubled debtrestructurings 10,172 16,480 17,076 22,233 27,761 on accrualTroubled debtrestructurings 5,972 5,819 6,104 5,763 8,431 on nonaccrualTotal troubleddebt $ 16,144 $ 22,299 $ 23,180 $ 27,996 $ 36,192 restructurings Nonperformingloans andleases as a 0.56 % 0.57 % 0.29 % 0.33 % 0.33 %percentage oftotal loansand leasesNonperformingassets as a 0.47 % 0.49 % 0.28 % 0.30 % 0.30 %percentage oftotal assets PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:Allowance forloan and leaselosses at $ 113,181 $ 61,082 $ 59,135 $ 58,635 $ 58,041 beginning ofperiodCECLadjustment to ? 6,632 ? ? ? retainedearningsCharge-offs (1,803 ) (2,539 ) (1,894 ) (1,190 ) (3,412 )Recoveries 420 305 272 824 330 Net (1,383 ) (2,234 ) (1,622 ) (366 ) (3,082 )charge-offsProvision forloan and leaselosses 7,755 47,701 3,569 866 3,676 excludingunfundedcommitments *Allowance forloan and lease $ 119,553 $ 113,181 $ 61,082 $ 59,135 $ 58,635 losses at endof period Allowance forloan and leaselosses as a 1.61 % 1.66 % 0.91 % 0.89 % 0.90 %percentage oftotal loansand leases NET CHARGE-OFFS:Commercialreal estate $ (94 ) $ ? $ ? $ ? $ ? loansCommercialloans and 1,498 2,280 1,589 403 3,107 leasesConsumer loans (21 ) (46 ) 33 (37 ) (25 )Total net $ 1,383 $ 2,234 $ 1,622 $ 366 $ 3,082 charge-offs Net loan andleasecharge-offs asa percentage 0.08 % 0.13 % 0.10 % 0.02 % 0.19 %of averageloans andleases(annualized)

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

BROOKLINE BANCORP, INC. AND SUBSIDIARIESAverage Yields / Costs (Unaudited) Three Months Ended June 30, 2020 March 31, 2020 June 30, 2019 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) $ 773,523 $ 3,719 1.92 % $ 605,885 $ 3,024 2.00 % $ 593,404 $ 3,210 2.16 %Marketable andrestricted equity 71,058 915 5.15 % 58,881 786 5.33 % 59,224 888 5.99 %securities (2)Short-term investments 245,577 99 0.16 % 84,309 209 0.99 % 44,634 351 3.14 %Total investments 1,090,158 4,733 1.74 % 749,075 4,019 2.15 % 697,262 4,449 2.55 %Loans and Leases: Commercial real estate 3,761,667 36,829 3.87 % 3,697,011 40,468 4.33 % 3,447,136 41,363 4.75 %loans (3)Commercial loans (3) 1,234,537 10,450 3.35 % 783,309 8,328 4.21 % 811,890 9,879 4.82 %Equipment financing 1,069,192 18,973 7.10 % 1,052,846 18,946 7.20 % 1,005,376 18,291 7.28 %(3)Residential mortgage 814,431 8,068 3.96 % 810,583 7,934 3.92 % 774,533 8,186 4.23 %loans (3)Other consumer loans 411,326 3,153 3.07 % 417,815 3,955 3.79 % 417,600 5,187 4.97 %(3)Total loans and leases 7,291,153 77,473 4.25 % 6,761,564 79,631 4.71 % 6,456,535 82,906 5.14 %Total interest-earning 8,381,311 82,206 3.92 % 7,510,639 83,650 4.46 % 7,153,797 87,355 4.88 %assetsNon-interest-earning 488,229 455,187 417,599 assetsTotal assets $ 8,869,540 $ 7,965,826 $ 7,571,396 Liabilities and Stockholders' Equity:Interest-bearing liabilities:Deposits: NOW accounts $ 395,158 114 0.12 % $ 359,641 116 0.13 % $ 343,745 50 0.06 %Savings accounts 663,782 357 0.22 % 626,945 643 0.41 % 602,333 737 0.49 %Money market accounts 1,784,343 2,074 0.47 % 1,678,649 4,241 1.02 % 1,683,735 5,571 1.33 %Certificates of 2,019,195 10,233 2.04 % 2,040,903 11,240 2.22 % 1,950,704 11,354 2.33 %depositTotal interest-bearing 4,862,478 12,778 1.06 % 4,706,138 16,240 1.39 % 4,580,517 17,712 1.55 %depositsBorrowings Advances from the 1,102,079 3,751 1.35 % 772,462 4,097 2.10 % 761,651 4,825 2.51 %FHLBBSubordinated 83,647 1,263 6.04 % 83,609 1,284 6.14 % 83,490 1,305 6.25 %debentures and notesOther borrowed funds 70,795 44 0.25 % 91,052 189 0.84 % 84,600 208 0.99 %Total borrowings 1,256,521 5,058 1.59 % 947,123 5,570 2.33 % 929,741 6,338 2.70 %Total interest-bearing 6,118,999 17,836 1.17 % 5,653,261 21,810 1.55 % 5,510,258 24,050 1.75 %liabilitiesNon-interest-bearing liabilities:Demand checking 1,512,089 1,134,314 1,015,524 accountsOthernon-interest-bearing 312,213 232,113 133,790 liabilitiesTotal liabilities 7,943,301 7,019,688 6,659,572 Stockholders? equity 926,239 946,138 911,824 Noncontrolling ? ? ? interest in subsidiaryTotal liabilities and $ 8,869,540 $ 7,965,826 $ 7,571,396 equityNet interest income(tax-equivalent basis) 64,370 2.75 % 61,840 2.91 % 63,305 3.13 %/Interest-rate spread(4)Less adjustment of 82 128 171 tax-exempt incomeNet interest income $ 64,288 $ 61,712 $ 63,134 Net interest margin 3.09 % 3.31 % 3.55 %(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 SUBSIDIARIESAverage Yields / Costs (Unaudited) Six Months Ended June 30, 2020 June 30, 2019 Average Interest Average Average Interest Average Balance (1) Yield/ Balance (1) Yield/ Cost Cost (Dollars in Thousands)Assets: Interest-earning assets:Investments: Debt securities (2) $ 689,704 $ 6,743 1.96 % $ 600,758 $ 6,499 2.16 %Marketable andrestricted equity 64,968 1,701 5.24 % 59,803 1,808 6.05 %securities (2)Short-term 164,943 308 0.37 % 38,866 618 3.18 %investmentsTotal investments 919,615 8,752 1.90 % 699,427 8,925 2.55 %Loans and Leases: Commercial real 3,729,339 77,297 4.10 % 3,412,051 81,382 4.74 %estate loans (3)Commercial loans (3) 1,008,923 18,778 3.68 % 802,346 19,482 4.83 %Equipment financing 1,061,019 37,919 7.15 % 996,832 36,276 7.28 %(3)Residential mortgage 812,507 16,002 3.94 % 776,419 16,309 4.20 %loans (3)Other consumer loans 414,570 7,108 3.43 % 412,914 10,238 4.99 %(3)Total loans and 7,026,358 157,104 4.47 % 6,400,562 163,687 5.11 %leasesTotalinterest-earning 7,945,973 165,856 4.17 % 7,099,989 172,612 4.86 %assetsNon-interest-earning 471,710 403,107 assetsTotal assets $ 8,417,683 $ 7,503,096 Liabilities andStockholders' Equity:Interest-bearing liabilities:Deposits: NOW accounts $ 377,399 230 0.12 % $ 338,983 192 0.11 %Savings accounts 645,363 1,000 0.31 % 614,307 1,334 0.44 %Money market 1,731,496 6,315 0.73 % 1,679,988 10,846 1.30 %accountsCertificates of 2,030,049 21,473 2.13 % 1,897,901 21,288 2.26 %depositTotalinterest-bearing 4,784,307 29,018 1.22 % 4,531,179 33,660 1.50 %depositsBorrowings Advances from the 937,271 7,848 1.66 % 758,613 9,435 2.47 %FHLBBSubordinated 83,628 2,547 6.09 % 83,471 2,613 6.26 %debentures and notesOther borrowed funds 80,924 233 0.58 % 86,589 429 1.00 %Total borrowings 1,101,823 10,628 1.91 % 928,673 12,477 2.67 %Totalinterest-bearing 5,886,130 39,646 1.35 % 5,459,852 46,137 1.70 %liabilitiesNon-interest-bearing liabilities:Demand checking 1,323,202 1,021,215 accountsOthernon-interest-bearing 272,162 122,544 liabilitiesTotal liabilities 7,481,494 6,603,611 Brookline Bancorp,Inc. stockholders? 936,189 899,301 equityNoncontrollinginterest in ? 184 subsidiaryTotal liabilities $ 8,417,683 $ 7,503,096 and equityNet interest income(tax-equivalentbasis) / 126,210 2.82 % 126,475 3.16 %Interest-rate spread(4)Less adjustment of 210 342 tax-exempt incomeNet interest income $ 126,000 $ 126,133 Net interest margin 3.19 % 3.59 %(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 At and for the Six Months Ended Ended June 30, June 30, 2020 2019 2020 2019 Reconciliation Table -Non-GAAP Financial (Dollars in Thousands Except Share Data)Information Net income attributable to $ 19,571 $ 20,471 $ 2,295 $ 42,938 Brookline Bancorp, Inc.Less: Security gains (after-tax) 440 268 1,958 373 Operating $ 19,131 $ 20,203 $ 337 $ 42,565 earnings Operatingearnings per common share:Basic $ 0.24 $ 0.25 $ ? $ 0.53 Diluted 0.24 0.25 ? 0.53 Weighted average commonshares outstanding during the period:Basic 78,849,282 79,669,922 79,165,372 79,664,284 Diluted 79,015,274 79,886,292 79,340,524 79,859,572 Return on average assets * 0.88 % 1.08 % 0.05 % 1.14 %Less: Security gains (after-tax) * 0.02 % 0.01 % 0.04 % 0.01 %Operating return on average 0.86 % 1.07 % 0.01 % 1.13 %assets * Return on average tangible 0.90 % 1.11 % 0.06 % 1.17 %assets *Less: Security gains (after-tax) * 0.02 % 0.02 % 0.05 % 0.01 %Operating return on average 0.88 % 1.09 % 0.01 % 1.16 %tangible assets * Return on average 8.45 % 8.98 % 0.49 % 9.55 %stockholders' equity *Less: Security gains (after-tax) * 0.19 % 0.12 % 0.42 % 0.08 %Operating return on average 8.26 % 8.86 % 0.07 % 9.47 %stockholders' equity * Return on average tangible 10.28 % 10.98 % 0.59 % 11.71 %stockholders' equity *Less: Security gains (after-tax) * 0.24 % 0.15 % 0.50 % 0.10 %Operating return on averagetangible stockholders' 10.04 % 10.83 % 0.09 % 11.61 %equity * * Ratios at and for thethree and six months ended are annualized. At and for the Three Months Ended June 30, 2020 March 31, 2020 December 31, September 30, June 30, 2019 2019 2019 (Dollars in Thousands) Net income(loss), as $ 19,571 $ (17,276 ) $ 22,183 $ 22,596 $ 20,471 reported Average total $ 8,869,540 $ 7,965,826 $ 7,860,593 $ 7,746,492 $ 7,571,396 assetsLess: Averagegoodwill andaverage 164,385 164,701 165,071 165,493 165,914 identifiedintangibleassets, netAveragetangible $ 8,705,155 $ 7,801,125 $ 7,695,522 $ 7,580,999 $ 7,405,482 assets Return onaverage )tangible 0.90 % (0.89 % 1.15 % 1.19 % 1.11 %assets(annualized) Average totalstockholders? $ 926,239 $ 946,138 $ 941,891 $ 928,063 $ 911,824 equityLess: Averagegoodwill andaverage 164,385 164,701 165,071 165,493 165,914 identifiedintangibleassets, netAveragetangible $ 761,854 $ 781,437 $ 776,820 $ 762,570 $ 745,910 stockholders?equity Return onaveragetangible 10.28 % (8.84 ) 11.42 % 11.85 % 10.98 %stockholders? %equity(annualized) BrooklineBancorp, Inc. $ 926,413 $ 912,568 $ 945,606 $ 932,311 $ 918,468 stockholders?equityLess: Goodwill 160,427 160,427 160,427 160,427 160,427 Identifiedintangible 3,775 4,087 4,423 4,843 5,264 assets, netTangiblestockholders' $ 762,211 $ 748,054 $ 780,756 $ 767,041 $ 752,777 equity Total assets $ 9,069,667 $ 8,461,591 $ 7,856,853 $ 7,878,436 $ 7,636,980 Less: Goodwill 160,427 160,427 160,427 160,427 160,427 Identifiedintangible 3,775 4,087 4,423 4,843 5,264 assets, netTangible $ 8,905,465 $ 8,297,077 $ 7,692,003 $ 7,713,166 $ 7,471,289 assets Tangiblestockholders?equity to 8.56 % 9.02 % 10.15 % 9.94 % 10.08 %tangibleassets Tangiblestockholders' $ 762,211 $ 748,054 $ 780,756 $ 767,041 $ 752,777 equity Number ofcommon shares 85,177,172 85,177,172 85,177,172 85,177,172 85,177,172 issuedLess: Treasury 5,859,708 5,862,811 5,003,127 5,003,127 5,025,764 sharesUnallocated 65,334 72,441 79,548 92,337 98,208 ESOP sharesUnvestedrestricted 398,188 395,085 406,450 407,784 377,122 sharesNumber ofcommon shares 78,853,942 78,846,835 79,688,047 79,673,924 79,676,078 outstanding Tangible bookvalue per $ 9.67 $ 9.49 $ 9.80 $ 9.63 $ 9.45 common share Allowance forloan and $ 119,553 $ 113,181 $ 61,082 $ 59,135 $ 58,635 lease losses Total loans $ 7,407,697 $ 6,822,527 $ 6,737,816 $ 6,646,821 $ 6,505,329 and leasesLess: Total PPP 565,768 ? ? ? ? loansTotal loansand leases $ 6,841,929 $ 6,822,527 $ 6,737,816 $ 6,646,821 $ 6,505,329 excluding PPPloans Allowance forloan andlease lossesas apercentage of 1.75 % 1.66 % 0.91 % 0.89 % 0.90 %total loansand leasesless PPPloans