GlobeNewswire Inc | Jan 26, 2022 04:05PM EST

January 26, 2022

BOSTON, Jan. 26, 2022 (GLOBE NEWSWIRE) -- Brookline Bancorp, Inc. (NASDAQ: BRKL) (the Company) today announced net income of $28.5 million, or $0.37 per basic and diluted share, for the fourth quarter of 2021, compared to $28.8 million, or $0.37 per basic and diluted share, for the third quarter of 2021, and $26.7 million, or $0.34 per basic and diluted share, for the fourth quarter of 2020.

For the year ended December31, 2021, the Company reported record net income of $115.4 million, or $1.48 per basic and diluted share. This compared to $47.6 million, or $0.60 per basic and diluted share, for the year ended December31, 2020.

Paul Perrault, Chairman and Chief Executive Officer commented on the Companys performance, I am pleased with our strong financial performance and earnings growth in 2021. We finished the year with exceptional loan growth and we are well positioned as we look forward to the coming year.In the fourth quarter we continued to build on our legacy of providing our customers with an array of robust financial offerings by launching Clarendon Private, an investment and wealth management company. This past year was challenging in many respects, and I would like to recognize our employees for their hard work and dedication throughout the year providing exceptional service to our customers. As we continue to navigate these challenging times, we remain cautiously optimistic for the future.

BALANCE SHEET

Total assets at December31, 2021 increased $290.0 million to $8.6 billion from $8.3 billion at September30, 2021, and decreased $339.8 million from $8.9 billion at December31, 2020. At December31, 2021, total loans and leases were $7.2 billion, representing an increase of $222.8 million from September30, 2021, and a decrease of $115.1 million from December31, 2020.

The Company funded a total of 4,700 of Small Business Administration's Paycheck Protection Program ("PPP") loans in the aggregate amount of $872.1 million. As of December31, 2021, $67.7 million in PPP loans remain outstanding, net of deferred fees and costs of $1.7 million. Excluding PPP loan activity, the core loan portfolio grew $315.6 million in the fourth quarter compared to growth of $99.2 million in the third quarter.

Total investment securities at December31, 2021 decreased $11.2 million to $720.9 million from $732.0 million at September30, 2021, and decreased $25.5 million from $746.3 million at December31, 2020. Total cash and cash equivalents at December31, 2021 increased $88.6 million to $327.7 million from $239.1 million at September30, 2021, and decreased $107.2 million from $434.9 million at December31, 2020. As of December31, 2021, total investment securities and total cash and cash equivalents represented 12.2 percent of total assets as compared to 11.7 percent and 13.2 percent as of September30, 2021 and December31, 2020, respectively.

Total deposits at December31, 2021 increased $176.9 million to $7.05 billion from $6.87 billion at September30, 2021 and increased $139.2 million from $6.91 billion at December31, 2020.

Total borrowed funds at December31, 2021 increased $89.8 million to $357.3 million from $267.5 million at September30, 2021 and decreased $462.9 million from $820.2 million at December31, 2020.

The ratio of stockholders equity to total assets was 11.57 percent at December31, 2021, as compared to 11.77 percent at September30, 2021, and 10.53 percent at December31, 2020. The ratio of tangible stockholders equity to tangible assets (non-GAAP) was 9.87 percent at December31, 2021, as compared to 10.01 percent at September30, 2021, and 8.86 percent at December31, 2020. Tangible book value per common share (non-GAAP) increased $0.22 from $10.51 at September30, 2021 to $10.73 at December31, 2021, compared to $9.96 at December31, 2020.

NET INTEREST INCOME

Net interest income increased $0.8 million to $71.5 million during the fourth quarter of 2021 from $70.7 million for the quarter ended September30, 2021. The net interest margin decreased 1 basis point to 3.52 percent for the three months ended December31, 2021 from 3.53 percent for the three months ended September30, 2021.

NON-INTEREST INCOME

Total non-interest income for the quarter ended December31, 2021 increased $5.1 million to $10.7 million from $5.6 million for the quarter ended September30, 2021. The increase was primarily driven by increases of $3.8 million in loan level derivative income, net, and $1.4 million in gain on sales of loans and leases.

PROVISION FOR CREDIT LOSSES

The Company recorded a provision for credit losses of $0.8 million for the quarter ended December31, 2021, compared to a negative provision of $3.1 million for the quarter ended September30, 2021. Total net charge-offs for the fourth quarter of 2021 were $2.1 million compared to $1.3 million in the third quarter of 2021. The increase was primarily driven by an increase in net charge-offs on equipment financing loans of $0.9 million, partially offset by a decrease in net charge-offs on commercial loans of $0.1 million. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis increased to 12 basis points for the fourth quarter of 2021 from 7 basis points for the third quarter of 2021.

The allowance for loan and lease losses represented 1.38 percent of total loans and leases at December31, 2021, compared to 1.48 percent at September30, 2021, and 1.57 percent at December31, 2020. Excluding PPP loans, the allowance for loan and lease losses represents 1.40 percent coverage at December31, 2021 compared to 1.51 percent at September30, 2021, and 1.69 percent at December31, 2020.

ASSET QUALITY

The ratio of total nonperforming loans and leases to total loans and leases was 0.45 percent at December31, 2021 as compared to 0.52 percent at September30, 2021. Nonperforming loans and leases decreased $3.4 million to $32.5 million at December31, 2021 from $35.9 million at September30, 2021. The ratio of nonperforming assets to total assets was 0.39 percent at December31, 2021 as compared to 0.44 percent at September30, 2021. Nonperforming assets decreased $3.3 million to $33.2 million at December31, 2021 from $36.5 million at September30, 2021.

From March 1, 2020 through the earlier of January 1, 2022 or 60 days after the termination date of the national emergency declared by the President on March 13, 2020 concerning the COVID-19 outbreak, a financial institution may elect to suspend the requirements under accounting principles generally accepted in the U.S. for loan modifications related to the COVID-19 pandemic that would otherwise be categorized as a troubled debt restructured, including impairment accounting. This troubled debt restructuring relief applies for the term of the loan modification that occurs during the applicable period for a loan that was not more than 30 days past due as of December 31, 2019. Financial institutions are required to maintain records of the volume of loans involved in modifications to which troubled debt restructuring relief is applicable. As of December 31, 2021, approximately 96 percent of loans granted an initial loan payment deferral have returned to payment status and 98 credits totaling $38.1 million or 0.5 percent of total loans outstanding have been modified.

NON-INTEREST EXPENSE

Non-interest expense for the quarter ended December31, 2021 increased $2.0 million to $42.9 million from $40.9 million for the quarter ended September30, 2021. The increase was primarily driven by increases of $1.4 million in compensation and employee benefits and $0.7 million in other non-interest expense, partially offset by a decrease of $0.2 million in advertising and marketing expense.

PROVISION FOR INCOME TAXES

The effective tax rate was 25.9 percent and 25.3 percent for the three and twelve months ended December31, 2021, respectively.

RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

The annualized return on average assets decreased to 1.35 percent during the fourth quarter of 2021 compared to 1.38 percent for the third quarter of 2021; and was 1.36 percent for the year ended December31, 2021, compared to 0.55 percent for the year ended December31, 2020.

The annualized return on average tangible stockholders' equity decreased to 13.84 percent during the fourth quarter of 2021 compared to 14.15 percent for the third quarter of 2021; and was 14.35 percent for the year ended December31, 2021 compared to 6.17 percent for the year ended December31, 2020.

DIVIDEND DECLARED

The Companys Board approved a dividend of $0.125 per share for the quarter ended December31, 2021. The dividend will be paid on February 25, 2022 to stockholders of record on February 11, 2022.

CONFERENCE CALL

The Company will conduct a conference call/webcast at 1:30 PM Eastern Time on Thursday, January 27, 2022 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/brkl220127.html. To listen to the call without access to the slides, please dial 844-200-6205 (United States) or 929-526-1599 (internationally) and ask for the Brookline Bancorp, Inc. call (Access Code 817809). A recording of the call will be available for one week following the call on the Companys website under Investor Relations or by dialing 866-813-9403 (United States) or 1-929-458-6194 (internationally) and entering the passcode: 342504.

ABOUT BROOKLINE BANCORP, INC.

Brookline Bancorp, Inc., a bank holding company with $8.6 billion in assets and branch locations in Massachusetts and Rhode Island, is headquartered in Boston, Massachusetts and operates as the holding company for Brookline Bank and Bank Rhode Island (the "banks"). The Company provides commercial and retail banking services, cash management and investment services to customers throughout Central New England. More information about Brookline Bancorp, Inc. and its banks can be found at the following websites: www.brooklinebank.com and www.bankri.com.

FORWARD-LOOKING STATEMENTS

Certain statements contained in this press release that are not historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We may also make forward-looking statements in other documents we file with the Securities and Exchange Commission ("SEC"), in our annual reports to shareholders, in press releases and other written materials, and in oral statements made by our officers, directors or employees. You can identify forward looking statements by the use of the words believe, expect, anticipate, intend, estimate, assume, outlook, will, should, and other expressions that predict or indicate future events and trends and which do not relate to historical matters, including statements regard the potential effects of the COVID-19 pandemic on the Companys business, credit quality, financial condition, liquidity and results of operations. Forward-looking statements involve risks and uncertainties. The Companys actual results could differ materially from those projected in the forward-looking statements as a result of, among other factors, ongoing disruptions due to the COVID-19 pandemic, 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; turbulence in capital and debt markets; and 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 SEC. The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.

BASIS OF PRESENTATION

The Company's consolidated financial statements have been prepared in conformity with generally accepted accounting principles (GAAP) as set forth by the Financial Accounting Standards Board in its Accounting Standards Codification and through the rules and interpretive releases of the SEC under the authority of federal securities laws. Certain amounts previously reported have been reclassified to conform to the current period's presentation.

NON-GAAP FINANCIAL MEASURES

The Company uses certain non-GAAP financial measures, such as operating earnings, operating return on average assets, operating return on average tangible assets, operating return on average stockholders' equity, operating return on average tangible stockholders' equity, the allowance for loan and lease losses as a percentage of total loans and leases less PPP loans, tangible book value per common share, tangible stockholders equity to tangible assets, return on average tangible assets (annualized) and return on average tangible stockholders' equity (annualized). These non-GAAP financial measures provide information for investors to effectively analyze financial trends of ongoing business activities, and to enhance comparability with peers across the financial services sector. A detailed reconciliation table of the Company's GAAP to the non-GAAP measures is attached.

INVESTOR RELATIONS:

Carl M. Carlson Brookline Bancorp, Inc.Contact: Co-President and Chief Financial Officer (617) 425-5331 ccarlson@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, March 31, December 31, December 31, December 31, 2021 2021 2021 2021 2020 2021 2020 (Dollars In Thousands Except per Share Data)Earnings Data: Net interest $ 71,461 $ 70,697 $ 71,106 $ 69,109 $ 68,225 $ 282,373 $ 260,163 incomeProvision(credit) for 751 (3,110 ) (3,331 ) (2,147 ) (2,103 ) (7,837 ) 61,886 credit lossesNon-interest 10,699 5,586 5,910 4,794 4,219 26,989 24,644 incomeNon-interest 42,909 40,922 37,966 40,811 40,038 162,608 160,844 expenseIncome beforeprovision for 38,500 38,471 42,381 35,239 34,509 154,591 62,077 income taxesNet income 28,545 28,839 31,602 26,454 26,663 115,440 47,635 Performance Ratios:Net interest 3.52 % 3.53 % 3.52 % 3.39 % 3.23 % 3.49 % 3.17 %margin (1)Interest-rate 3.42 % 3.39 % 3.34 % 3.15 % 3.03 % 3.32 % 2.88 %spread (1)Return onaverage assets 1.35 % 1.38 % 1.48 % 1.21 % 1.20 % 1.36 % 0.55 %(annualized)Return onaveragetangible 1.38 % 1.41 % 1.51 % 1.24 % 1.22 % 1.38 % 0.56 %assets(annualized)(non-GAAP)Return onaveragestockholders' 11.56 % 11.79 % 13.21 % 11.18 % 11.38 % 11.93 % 5.09 %equity(annualized)Return onaveragetangiblestockholders' 13.84 % 14.15 % 15.92 % 13.51 % 13.79 % 14.35 % 6.17 %equity(annualized)(non-GAAP)Efficiency 52.23 % 53.64 % 49.30 % 55.22 % 55.27 % 52.56 % 56.47 %ratio (2) Per Common Share Data:Net income ? $ 0.37 $ 0.37 $ 0.40 $ 0.34 $ 0.34 $ 1.48 $ 0.60 BasicNet income ? 0.37 0.37 0.40 0.34 0.34 1.48 0.60 DilutedCash dividends 0.125 0.125 0.120 0.120 0.115 0.490 0.460 declaredBook value pershare (end of 12.82 12.61 12.44 12.10 12.05 12.82 12.05 period)Tangible bookvalue percommon share 10.73 10.51 10.35 10.01 9.96 10.73 9.96 (end ofperiod)(non-GAAP)Stock price(end of 16.19 15.26 14.95 15.00 12.04 16.19 12.04 period) Balance Sheet: Total assets $ 8,602,622 $ 8,312,649 $ 8,461,964 $ 8,559,810 $ 8,942,424 $ 8,602,622 $ 8,942,424 Total loans 7,154,457 6,931,694 7,020,275 7,267,552 7,269,553 7,154,457 7,269,553 and leasesTotal deposits 7,049,906 6,873,010 6,894,701 6,866,786 6,910,696 7,049,906 6,910,696 Totalstockholders? 995,342 978,452 972,252 945,399 941,778 995,342 941,778 equity Asset Quality: Nonperforming $ 33,177 $ 36,461 $ 34,588 $ 37,403 $ 44,963 $ 33,177 $ 44,963 assetsNonperformingassets as a 0.39 % 0.44 % 0.41 % 0.44 % 0.50 % 0.39 % 0.50 %percentage oftotal assetsAllowance forloan and lease $ 99,084 $ 102,515 $ 106,474 $ 109,837 $ 114,379 $ 99,084 $ 114,379 lossesAllowance forloan and leaselosses as a 1.38 % 1.48 % 1.52 % 1.51 % 1.57 % 1.38 % 1.57 %percentage oftotal loansand leasesNet loan andlease $ 2,124 $ 1,255 $ 595 $ 1,760 $ 4,381 $ 5,734 $ 12,961 charge-offsNet loan andleasecharge-offs asa percentage 0.12 % 0.07 % 0.03 % 0.10 % 0.24 % 0.08 % 0.18 %of averageloans andleases(annualized) Capital Ratios:Stockholders?equity to 11.57 % 11.77 % 11.49 % 11.04 % 10.53 % 11.57 % 10.53 %total assetsTangiblestockholders?equity to 9.87 % 10.01 % 9.75 % 9.31 % 8.86 % 9.87 % 8.86 %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)

December September June 30, March 31, December 31, 30, 2021 2021 31, 2021 2021 2020ASSETS (In Thousands Except Share Data) Cash and due from $ 66,265 $ 28,865 $ 36,079 $ 41,284 $ 36,069banksShort-term 261,472 210,279 284,370 89,643 398,848investmentsTotal cash and 327,737 239,144 320,449 130,927 434,917cash equivalentsInvestmentsecurities 720,866 732,020 694,151 729,901 745,822available-for-saleEquity securities - - - 518 526held-for-tradingTotal investment 720,866 732,020 694,151 730,419 746,348securitiesLoans and leases: Commercial real 4,103,040 3,909,011 3,815,581 3,790,341 3,823,826estate loansCommercial loans 1,887,136 1,869,686 2,038,851 2,324,202 2,274,899and leasesConsumer loans 1,164,281 1,152,997 1,165,843 1,153,009 1,170,828Total loans and 7,154,457 6,931,694 7,020,275 7,267,552 7,269,553leasesAllowance for loan (99,084) (102,515) (106,474) (109,837) (114,379)and lease lossesNet loans and 7,055,373 6,829,179 6,913,801 7,157,715 7,155,174leasesRestricted equity 28,981 28,098 31,627 40,400 49,786securitiesPremises andequipment, net of 70,359 70,811 71,240 72,524 71,568accumulateddepreciationRight-of-use asset 20,508 21,879 22,682 23,180 24,143operating leasesDeferred tax asset 38,987 39,643 41,324 42,857 40,129Goodwill 160,427 160,427 160,427 160,427 160,427Identifiedintangible assets, 2,276 2,484 2,692 2,920 3,152net of accumulatedamortizationOther real estateowned and 718 601 372 6,383 6,515repossessed assetsOther assets 176,390 188,363 203,199 192,058 250,265Total assets $ 8,602,622 $ 8,312,649 $ 8,461,964 $ 8,559,810 $ 8,942,424LIABILITIES ANDSTOCKHOLDERS' EQUITYDeposits: Demand checking $ 1,888,462 $ 1,816,116 $ 1,926,713 $ 1,724,170 $ 1,592,205accountsNOW accounts 604,097 513,032 495,598 481,988 513,948Savings accounts 915,804 823,095 782,482 724,504 701,659Money market 2,358,306 2,393,362 2,250,651 2,192,468 2,018,977accountsCertificate of 1,117,695 1,141,861 1,178,131 1,273,105 1,389,998deposit accountsBrokered deposit 165,542 185,544 261,126 470,551 693,909accountsTotal deposits 7,049,906 6,873,010 6,894,701 6,866,786 6,910,696Borrowed funds: Advances from the 147,907 113,977 204,154 378,646 648,849FHLBBSubordinateddebentures and 83,897 83,859 83,821 83,783 83,746notesOther borrowed 125,517 69,703 75,039 83,574 87,652fundsTotal borrowed 357,321 267,539 363,014 546,003 820,247fundsOperating lease 20,508 21,879 22,682 23,180 24,143liabilitiesMortgagors? escrow 6,296 6,455 6,231 6,483 5,901accountsReserve for 14,794 12,736 13,142 13,705 13,071unfunded creditsAccrued expensesand other 158,455 152,578 189,942 158,254 226,588liabilitiesTotal liabilities 7,607,280 7,334,197 7,489,712 7,614,411 8,000,646Stockholders' equity:Common stock,$0.01 par value;200,000,000 sharesauthorized;85,177,172 sharesissued, 85,177,172shares issued, 852 852 852 852 85285,177,172 sharesissued, 85,177,172shares issued, and85,177,172 sharesissued,respectivelyAdditional paid-in 736,826 735,990 738,557 737,882 737,178capitalRetained earnings,partially 342,639 323,862 304,466 282,301 264,892restrictedAccumulated othercomprehensive (110) 2,615 6,089 2,082 16,490incomeTreasury stock, at cost;7,037,464 shares,7,034,754 shares,6,536,478 shares,6,534,602 shares, (84,718) (84,684) (77,493) (77,463) (77,343)and 6,525,783shares,respectivelyUnallocated commonstock held by the Employee StockOwnership Plan;24,660 shares,31,278 shares,37,890 shares, (147) (183) (219) (255) (291)44,502 shares, and51,114 shares,respectivelyTotalstockholders' 995,342 978,452 972,252 945,399 941,778equityTotal liabilitiesand stockholders' $ 8,602,622 $ 8,312,649 $ 8,461,964 $ 8,559,810 $ 8,942,424equity

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

Three Months Ended December 31, September 30, June 30, March 31, December 31, 2021 2021 2021 2021 2020 (In Thousands Except Share Data)Interest anddividend income:Loans and $ 73,560 $ 74,332 $ 75,026 $ 75,009 $ 76,583 leasesDebt 2,972 2,967 3,121 3,118 3,335 securitiesMarketableandrestricted 325 313 233 301 490 equitysecuritiesShort-term 88 83 42 39 59 investmentsTotalinterest and 76,945 77,695 78,422 78,467 80,467 dividendincomeInterest expense:Deposits 4,055 4,571 5,380 6,707 8,825 Borrowed 1,429 2,427 1,936 2,651 3,417 fundsTotalinterest 5,484 6,998 7,316 9,358 12,242 expenseNet interest 71,461 70,697 71,106 69,109 68,225 incomeProvision(credit) for 751 (3,110 ) (3,331 ) (2,147 ) (2,103 )credit lossesNet interestincome after 70,710 73,807 74,437 71,256 70,328 provision forcredit lossesNon-interest income:Deposit fees 2,653 2,629 3,015 2,281 2,358 Loan fees 448 487 607 599 588 Loan levelderivative 3,981 218 7 474 145 income, net(Loss) gainon investment (32 ) - 1 (7 ) - securities,netGain on salesof loans and 1,933 557 538 709 67 leasesheld-for-saleOther 1,716 1,695 1,742 738 1,061 Totalnon-interest 10,699 5,586 5,910 4,794 4,219 incomeNon-interest expense:Compensationand employee 28,598 27,206 25,161 25,821 25,054 benefitsOccupancy 3,558 3,567 3,832 4,004 3,806 Equipment anddata 4,576 4,556 4,697 4,493 4,193 processingProfessional 1,151 1,072 1,245 1,226 1,338 servicesFDIC 617 662 657 1,044 1,630 insuranceAdvertising 880 1,077 1,110 1,100 1,010 and marketingAmortizationof identified 208 208 228 232 312 intangibleassetsOther 3,321 2,574 1,036 2,891 2,695 Totalnon-interest 42,909 40,922 37,966 40,811 40,038 expenseIncome beforeprovision for 38,500 38,471 42,381 35,239 34,509 income taxesProvision for 9,955 9,632 10,779 8,785 7,846 income taxesNet income $ 28,545 $ 28,839 $ 31,602 $ 26,454 $ 26,663 Earnings per common share:Basic $ 0.37 $ 0.37 $ 0.40 $ 0.34 $ 0.34 Diluted $ 0.37 $ 0.37 $ 0.40 $ 0.34 $ 0.34 Weighted average common shares outstanding during the period:Basic 77,610,608 78,000,261 78,150,364 78,143,752 78,533,351 Diluted 77,864,097 78,240,633 78,470,451 78,404,063 78,680,873 Dividendspaid per $ 0.125 $ 0.120 $ 0.120 $ 0.115 $ 0.115 common share

BROOKLINE BANCORP, INC. AND SUBSIDIARIESConsolidated Statements of Income (Unaudited) Twelve Months Ended December 31, 2021 2020 (In Thousands Except Share Data)Interest and dividend income: Loans and leases $ 297,927 $ 309,798Debt securities 12,178 13,758Marketable and restricted equity securities 1,172 2,848Short-term investments 252 413Total interest and dividend income 311,529 326,817Interest expense: Deposits 20,713 48,426Borrowed funds 8,443 18,228Total interest expense 29,156 66,654Net interest income 282,373 260,163(Credit) provision for credit losses (7,837 ) 61,886Net interest income after provision for credit 290,210 198,277lossesNon-interest income: Deposit fees 10,578 9,050Loan fees 2,095 2,048Loan level derivative income, net 4,680 4,268(Loss) gain on investment securities, net (38 ) 1,970Gain on sales of loans and leases held-for-sale 3,737 1,118Other 5,937 6,190Total non-interest income 26,989 24,644Non-interest expense: Compensation and employee benefits 106,786 100,985Occupancy 14,961 15,386Equipment and data processing 18,322 17,345Professional services 4,694 5,157FDIC insurance 2,980 4,229Advertising and marketing 4,167 4,126Amortization of identified intangible assets 876 1,271Other 9,822 12,345Total non-interest expense 162,608 160,844Income before provision for income taxes 154,591 62,077Provision for income taxes 39,151 14,442Net income $ 115,440 $ 47,635Earnings per common share: Basic $ 1.48 $ 0.60Diluted $ 1.48 $ 0.60Weighted average common shares outstanding during the period: Basic 77,974,851 78,951,892Diluted 78,243,416 79,103,289Dividends paid per common share $ 0.480 $ 0.460

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

At and for the Three Months Ended December 31, September 30, June 30, March 31, December 31, 2021 2021 2021 2021 2020 (Dollars in Thousands)NONPERFORMING ASSETS:Loans andleasesaccounted for on anonaccrualbasis:Commercialreal estate $ 10,848 $ 10,963 $ 11,657 $ 3,611 $ 3,300 mortgageMulti-family - - - - - mortgageConstruction - - - 3,853 3,853 Totalcommercial 10,848 10,963 11,657 7,464 7,153 real estateloans Commercial 2,318 2,539 3,207 3,161 7,702 Equipment 15,014 17,655 14,872 15,772 16,757 financingCondominium 84 91 97 106 112 associationTotalcommercial 17,416 20,285 18,176 19,039 24,571 loans andleases Residential 3,909 4,150 3,638 3,722 5,587 mortgageHome equity 285 461 744 793 1,136 Other consumer 1 1 1 2 1 Total consumer 4,195 4,612 4,383 4,517 6,724 loans Totalnonaccrual 32,459 35,860 34,216 31,020 38,448 loans andleases Other real - - - 5,328 5,415 estate ownedOtherrepossessed 718 601 372 1,055 1,100 assetsTotalnonperforming $ 33,177 $ 36,461 $ 34,588 $ 37,403 $ 44,963 assets Loans andleases pastdue greater $ 1 $ 838 $ 3,154 $ 1,179 $ 11,975 than 90 daysand stillaccruing Troubled debtrestructurings 12,580 13,526 14,387 16,770 11,483 on accrualTroubled debtrestructurings 6,709 6,655 6,410 6,293 7,476 on nonaccrualTotal troubleddebt $ 19,289 $ 20,181 $ 20,797 $ 23,063 $ 18,959 restructurings Nonperformingloans andleases as a 0.45 % 0.52 % 0.49 % 0.43 % 0.53 %percentage oftotal loansand leasesNonperformingassets as a 0.39 % 0.44 % 0.41 % 0.44 % 0.50 %percentage oftotal assets PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:Allowance forloan and leaselosses at $ 102,515 $ 106,474 $ 109,837 $ 114,379 $ 119,971 beginning ofperiodCharge-offs (2,562 ) (1,600 ) (1,221 ) (2,143 ) (4,810 )Recoveries 438 345 626 383 429 Net (2,124 ) (1,255 ) (595 ) (1,760 ) (4,381 )charge-offsProvision(credit) forloan and leaselosses (1,307 ) (2,704 ) (2,768 ) (2,782 ) (1,211 )excludingunfundedcommitments *Allowance forloan and lease $ 99,084 $ 102,515 $ 106,474 $ 109,837 $ 114,379 losses at endof period Allowance forloan and leaselosses as a 1.38 % 1.48 % 1.52 % 1.51 % 1.57 %percentage oftotal loansand leases NET CHARGE-OFFS:Commercialreal estate $ - $ (1 ) $ 17 $ - $ 3,444 loansCommercialloans and 2,143 1,276 695 1,809 1,011 leasesConsumer loans (19 ) (20 ) (117 ) (49 ) (74 )Total net $ 2,124 $ 1,255 $ 595 $ 1,760 $ 4,381 charge-offs Net loan andleasecharge-offs asa percentage 0.12 % 0.07 % 0.03 % 0.10 % 0.24 %of averageloans andleases(annualized) *Provision forloan and leaselosses doesnot includeprovision(credit) of$2.1 million,$(0.4)million, $(0.6) million,$0.6 million,and $(0.9)million forcredit losses on unfundedcommitmentsduring thethree monthsended December31, 2021,September 30,2021, June 30,2021, March31, 2021, andDecember 31,2020respectively.

BROOKLINE BANCORP, INC. AND SUBSIDIARIESAverage Yields / Costs (Unaudited)

Three Months Ended December 31, 2021 September 30, 2021 December 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) $ 727,734 $ 2,972 1.63 % $ 713,593 $ 2,967 1.66 % $ 770,414 $ 3,334 1.73 %Marketable andrestricted equity 27,019 325 4.81 % 28,877 313 4.33 % 51,469 491 3.81 %securities (2)Short-term 224,573 88 0.16 % 220,110 83 0.15 % 223,665 59 0.10 %investmentsTotal investments 979,326 3,385 1.38 % 962,580 3,363 1.40 % 1,045,548 3,884 1.49 %Loans and Leases: Commercial real 3,996,647 35,762 3.50 % 3,851,677 35,124 3.57 % 3,833,172 35,526 3.63 %estate loans (3)Commercial loans (3) 820,932 10,146 4.84 % 901,862 11,715 5.09 % 1,260,883 11,936 3.71 %Equipment financing 1,092,457 18,175 6.65 % 1,079,059 17,725 6.57 % 1,086,855 18,626 6.86 %(3)Residential mortgage 796,326 6,785 3.41 % 788,874 6,989 3.54 % 803,884 7,530 3.75 %loans (3)Other consumer loans 368,087 2,751 2.96 % 364,914 2,830 3.07 % 385,818 3,020 3.10 %(3)Total loans and 7,074,449 73,619 4.16 % 6,986,386 74,383 4.26 % 7,370,612 76,638 4.16 %leases Totalinterest-earning 8,053,775 77,004 3.82 % 7,948,966 77,746 3.91 % 8,416,160 80,522 3.83 %assetsNon-interest-earning 408,456 411,669 458,307 assetsTotal assets $ 8,462,231 $ 8,360,635 $ 8,874,467 Liabilities andStockholders' Equity:Interest-bearing liabilities:Deposits: NOW accounts $ 528,335 101 0.08 % $ 502,093 116 0.09 % $ 451,014 126 0.11 %Savings accounts 897,821 219 0.10 % 785,657 248 0.12 % 701,378 245 0.14 %Money market 2,430,496 1,615 0.26 % 2,387,080 1,616 0.27 % 1,947,686 1,546 0.32 %accountsCertificates of 1,129,645 2,072 0.73 % 1,160,113 2,430 0.83 % 1,452,867 5,718 1.57 %depositBrokered deposit 116,611 48 0.16 % 216,112 161 0.30 % 746,281 1,190 0.63 %accounts Totalinterest-bearing 5,102,908 4,055 0.32 % 5,051,055 4,571 0.36 % 5,299,226 8,825 0.66 %depositsBorrowings: Advances from the 76,786 117 0.59 % 119,043 1,152 3.79 % 619,844 2,118 1.34 %FHLBBSubordinated 83,878 1,241 5.92 % 83,840 1,242 5.92 % 83,725 1,245 5.95 %debentures and notesOther borrowed funds 112,137 71 0.25 % 76,380 33 0.17 % 81,320 54 0.26 %Total borrowings 272,801 1,429 2.05 % 279,263 2,427 3.40 % 784,889 3,417 1.70 % Totalinterest-bearing 5,375,709 5,484 0.40 % 5,330,318 6,998 0.52 % 6,084,115 12,242 0.80 %liabilitiesNon-interest-bearing liabilities:Demand checking 1,892,763 1,827,501 1,587,618 accountsOthernon-interest-bearing 206,237 224,445 265,440 liabilitiesTotal liabilities 7,474,709 7,382,264 7,937,173 Stockholders? equity 987,522 978,371 937,294 Total liabilities $ 8,462,231 $ 8,360,635 $ 8,874,467 and equityNet interest income(tax-equivalentbasis) / 71,520 3.42 % 70,748 3.39 % 68,280 3.03 %Interest-rate spread(4)Less adjustment of 59 51 55 tax-exempt incomeNet interest income $ 71,461 $ 70,697 $ 68,225 Net interest margin 3.52 % 3.53 % 3.23 %(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, 2021 December 31, 2020 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) $ 729,147 $ 12,178 1.67 % $ 750,689 $ 13,823 1.84 %Marketable andrestricted equity 34,074 1,172 3.44 % 61,873 2,862 4.63 %securities (2)Short-term 217,784 252 0.12 % 186,617 413 0.22 %investmentsTotal investments 981,005 13,602 1.39 % 999,179 17,098 1.71 %Loans and Leases: Commercial real 3,854,357 139,451 3.57 % 3,781,201 148,438 3.86 %estate loans (3)Commercial loans (3) 1,020,627 47,647 4.61 % 1,140,699 41,391 3.57 %Equipment financing 1,081,287 71,906 6.65 % 1,074,561 75,563 7.03 %(3)Residential mortgage 788,614 27,933 3.54 % 810,855 31,392 3.87 %loans (3)Other consumer loans 369,326 11,209 3.03 % 402,672 13,255 3.28 %(3)Total loans and 7,114,211 298,146 4.19 % 7,209,988 310,039 4.30 %leases Totalinterest-earning 8,095,216 311,748 3.85 % 8,209,167 327,137 3.99 %assetsNon-interest-earning 422,984 474,402 assetsTotal assets $ 8,518,200 $ 8,683,569 Liabilities andStockholders' Equity:Interest-bearing liabilities:Deposits: NOW accounts $ 502,189 493 0.10 % $ 408,374 484 0.12 %Savings accounts 793,141 950 0.12 % 670,217 1,503 0.22 %Money market 2,288,740 6,214 0.27 % 1,817,085 9,519 0.52 %accountsCertificates of 1,210,451 11,758 0.97 % 1,577,104 30,355 1.92 %depositBrokered deposit 338,734 1,298 0.38 % 512,803 6,565 1.28 %accounts Totalinterest-bearing 5,133,255 20,713 0.40 % 4,985,583 48,426 0.97 %depositsBorrowings: Advances from the 232,175 3,302 1.40 % 859,389 12,842 1.47 %FHLBBSubordinated 83,821 4,967 5.93 % 83,667 5,038 6.02 %debentures and notesOther borrowed funds 88,818 174 0.20 % 90,587 348 0.38 %Total borrowings 404,814 8,443 2.06 % 1,033,643 18,228 1.73 %Totalinterest-bearing 5,538,069 29,156 0.53 % 6,019,226 66,654 1.11 %liabilitiesNon-interest-bearing liabilities:Demand checking 1,787,959 1,451,556 accountsOthernon-interest-bearing 224,634 276,712 liabilitiesTotal liabilities 7,550,662 7,747,494 Stockholders? equity 967,538 936,075 Total liabilities $ 8,518,200 $ 8,683,569 and equityNet interest income(tax-equivalentbasis) / 282,592 3.32 % 260,483 2.88 %Interest-rate spread(4)Less adjustment of 219 320 tax-exempt incomeNet interest income $ 282,373 $ 260,163 Net interest margin 3.49 % 3.17 %(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 December 31, Ended December 31, 2021 2020 2021 2020 Reconciliation Table - Non-GAAP Financial (Dollars in Thousands Except Share Data)Information Net income $ 28,545 $ 26,663 $ 115,440 $ 47,635 Less: Security (losses) gains (after-tax) (24 ) - (28 ) 1,511 Operating $ 28,569 $ 26,663 $ 115,468 $ 46,124 earnings Operating earnings per common share:Basic $ 0.37 $ 0.34 $ 1.48 $ 0.58 Diluted 0.37 0.34 1.48 0.58 Weighted average common shares outstanding during the period:Basic 77,610,608 78,533,351 77,974,851 78,951,892 Diluted 77,864,097 78,680,873 78,243,416 79,103,289 Return on average assets * 1.35 % 1.20 % 1.36 % 0.55 %Less: Security gains (after-tax) * - % - % - % 0.02 %Operating return on average 1.35 % 1.20 % 1.36 % 0.53 %assets * Return on average tangible 1.38 % 1.22 % 1.38 % 0.56 %assets *Less: Security gains (after-tax) * - % - % - % 0.02 %Operating return on average 1.38 % 1.22 % 1.38 % 0.54 %tangible assets * Return on average 11.56 % 11.38 % 11.93 % 5.09 %stockholders' equity *Less: Security (losses) gains (0.01 ) - % - % 0.16 %(after-tax) * %Operating return on average stockholders' 11.57 % 11.38 % 11.93 % 4.93 %equity * Return on average tangible stockholders' 13.84 % 13.79 % 14.35 % 6.17 %equity *Less: Security (losses) gains (0.01 ) - % - % 0.20 %(after-tax) * %Operating return on average tangible 13.85 % 13.79 % 14.35 % 5.97 %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, 2021 2021 2021 2021 2020 2021 2020 (Dollars in Thousands) Net income, $ 28,545 $ 28,839 $ 31,602 $ 26,454 $ 26,663 $ 115,440 $ 47,635 as reported Average total $ 8,462,231 $ 8,360,635 $ 8,540,228 $ 8,714,158 $ 8,874,467 $ 8,518,200 $ 8,683,569 assetsLess: Averagegoodwill andaverage 162,804 163,011 163,224 163,457 163,758 163,122 164,227 identifiedintangibleassets, netAveragetangible $ 8,299,427 $ 8,197,624 $ 8,377,004 $ 8,550,701 $ 8,710,709 $ 8,355,078 $ 8,519,342 assets Return onaveragetangible 1.38 % 1.41 % 1.51 % 1.24 % 1.22 % 1.38 % 0.56 %assets(annualized) Average totalstockholders? $ 987,522 $ 978,371 $ 957,207 $ 946,482 $ 937,294 $ 967,538 $ 936,075 equityLess: Averagegoodwill andaverage 162,804 163,011 163,224 163,457 163,758 163,122 164,227 identifiedintangibleassets, netAveragetangible $ 824,718 $ 815,360 $ 793,983 $ 783,025 $ 773,536 $ 804,416 $ 771,848 stockholders?equity Return onaveragetangible 13.84 % 14.15 % 15.92 % 13.51 % 13.79 % 14.35 % 6.17 %stockholders?equity(annualized) Totalstockholders? $ 995,342 $ 978,452 $ 972,252 $ 945,399 $ 941,778 $ 995,342 $ 941,778 equityLess: Goodwill 160,427 160,427 160,427 160,427 160,427 160,427 160,427 Identifiedintangible 2,276 2,484 2,692 2,920 3,152 2,276 3,152 assets, netTangiblestockholders' $ 832,639 $ 815,541 $ 809,133 $ 782,052 $ 778,199 $ 832,639 $ 778,199 equity Total assets $ 8,602,622 $ 8,312,649 $ 8,461,964 $ 8,559,810 $ 8,942,424 $ 8,602,622 $ 8,942,424 Less: Goodwill 160,427 160,427 160,427 160,427 160,427 160,427 160,427 Identifiedintangible 2,276 2,484 2,692 2,920 3,152 2,276 3,152 assets, netTangible $ 8,439,919 $ 8,149,738 $ 8,298,845 $ 8,396,463 $ 8,778,845 $ 8,439,919 $ 8,778,845 assets Tangiblestockholders?equity to 9.87 % 10.01 % 9.75 % 9.31 % 8.86 % 9.87 % 8.86 %tangibleassets Tangiblestockholders' $ 832,639 $ 815,541 $ 809,133 $ 782,052 $ 778,199 $ 832,639 $ 778,199 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 7,037,464 7,034,754 6,536,478 6,534,602 6,525,783 7,037,464 6,525,783 sharesUnallocated 24,660 31,278 37,890 44,502 51,114 24,660 51,114 ESOP sharesUnvestedrestricted 500,098 502,808 448,105 449,981 458,800 500,098 458,800 sharesNumber ofcommon shares 77,614,950 77,608,332 78,154,699 78,148,087 78,141,475 77,614,950 78,141,475 outstanding Tangible bookvalue per $ 10.73 $ 10.51 $ 10.35 $ 10.01 $ 9.96 $ 10.73 $ 9.96 common share Allowance forloan and $ 99,084 $ 102,515 $ 106,474 $ 109,837 $ 114,379 $ 99,084 $ 114,379 lease losses Total loans $ 7,154,457 $ 6,931,694 $ 7,020,275 $ 7,267,552 $ 7,269,553 $ 7,154,457 $ 7,269,553 and leasesLess: Total PPP 67,711 160,586 348,411 604,790 489,216 67,711 489,216 loansTotal loansand leases $ 7,086,746 $ 6,771,108 $ 6,671,864 $ 6,662,762 $ 6,780,337 $ 7,086,746 $ 6,780,337 excluding PPPloans Allowance forloan andlease lossesas apercentage of 1.40 % 1.51 % 1.60 % 1.65 % 1.69 % 1.40 % 1.69 %total loansand leasesless PPPloans

PDF available: http://ml.globenewswire.com/Resource/Download/de5148c8-c3cc-4089-8a1a-49cc07b34eff