Net Income of $28.8 million, EPS of $0.37

Quarterly Dividend Increase of 4.2%

BOSTON, Oct. 27, 2021 (GLOBE NEWSWIRE) -- Brookline Bancorp, Inc. (NASDAQ:BRKL) (the "Company") today announced net income of $28.8 million, or $0.37 per basic and diluted share, for the third quarter of 2021, compared to net income of $31.6 million, or $0.40 per basic and diluted share, for the second quarter of 2021, and net income of $18.7 million, or $0.24 per basic and diluted share, for the third quarter of 2020.

Paul Perrault, Chairman and Chief Executive Officer of the Company commented on the third quarter earnings, "I am pleased to report solid earnings for the third quarter of $28.8 million or $0.37 per share as the economy in our markets continues to improve." Perrault continued, "Our employees have remained focused on providing exceptional customer service to our customers and communities throughout 2021 which has positioned us well as we look forward to the end of the year."

BALANCE SHEET

Total assets at September 30, 2021 decreased $149.3 million to $8.3 billion from $8.5 billion at June 30, 2021, and decreased $687.5 million from $9.0 billion at September 30, 2020. At September 30, 2021, total loans and leases were $6.9 billion, representing a decrease of $88.6 million from June 30, 2021, and a decrease of $464.7 million from September 30, 2020.

The Company funded a total of 4,700 of SBA Paycheck Protection Program ("PPP") loans in the aggregate amount of $872.1 million. As of September 30, 2021, $160.6 million in PPP loans remain outstanding, net of deferred fees and costs of $5.4 million. Excluding PPP loan activity, the core loan portfolio grew $99.2 million in the third quarter compared to growth of $9.1 million in the second quarter.

Total investment securities at September 30, 2021 increased $37.9 million to $732.0 million from $694.2 million at June 30, 2021, and decreased $52.4 million from $784.4 million at September 30, 2020. Total cash and cash equivalents at September 30, 2021 decreased $81.3 million to $239.1 million from $320.4 million at June 30, 2021, and decreased $78.2 million from $317.3 million at September 30, 2020. As of September 30, 2021, total investment securities and total cash and cash equivalents represented 11.7 percent of total assets as compared to 12.0 percent and 12.2 percent as of June 30, 2021 and September 30, 2020, respectively.

Total deposits at September 30, 2021 decreased $21.7 million to $6.87 billion from $6.89 billion at June 30, 2021, and increased $80.5 million from $6.8 billion at September 30, 2020.

Total borrowed funds at September 30, 2021 decreased $95.5 million to $267.5 million from $363.0 million at June 30, 2021, and decreased $737.5 million from $1.0 billion at September 30, 2020.

The ratio of stockholders' equity to total assets was 11.77 percent at September 30, 2021, as compared to 11.49 percent at June 30, 2021, and 10.39 percent at September 30, 2020. The ratio of tangible stockholders' equity to tangible assets (non-GAAP) was 10.01 percent at September 30, 2021, as compared to 9.75 percent at June 30, 2021, and 8.73 percent at September 30, 2020. Tangible book value per share (non-GAAP) increased $0.16 from $10.35 at June 30, 2021 to $10.51 at September 30, 2021, compared to $9.77 at September 30, 2020.

NET INTEREST INCOME

Net interest income decreased $0.4 million to $70.7 million for the third quarter of 2021 from $71.1 million at the quarter ended June 30, 2021. The net interest margin increased 1 basis point to 3.53 percent for the three months ended September 30, 2021 from 3.52 percent for the three months ended June 30, 2021.

NON-INTEREST INCOME

Total non-interest income for the quarter ended September 30, 2021 decreased $0.3 million to $5.6 million from $5.9 million for the quarter ended June 30, 2021. The decrease was primarily driven by a decrease of $0.4 million in deposit fees and a decrease of $0.1 million in loan fees, partially offset by an increase of $0.2 million in loan level derivative income, net.

PROVISION FOR CREDIT LOSSES

The Company recorded a negative provision for credit losses of $3.1 million for the quarter ended September 30, 2021, compared to a negative provision for credit losses of $3.3 million for the quarter ended June 30, 2021. Total net charge-offs for the third quarter of 2021 were $1.3 million compared to $0.6 million in the second quarter of 2021. The increase was primarily driven by an increase in charge-offs on equipment financing and commercial loans for $0.2 million and $0.2 million, respectively, along with a decrease in recoveries on equipment financing and home equity loans for $0.2 million and $0.1 million, respectively. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis increased to 7 basis points for the third quarter of 2021 from 3 basis points for the second quarter of 2021.

The allowance for loan and lease losses represented 1.48 percent of total loans and leases at September 30, 2021, compared to 1.52 percent at June 30, 2021, and 1.62 percent at September 30, 2020. Excluding PPP loans, the allowance for loan and lease losses represented 1.51 percent of total loans and leases at September 30, 2021 compared to 1.60 percent at June 30, 2021, and 1.76 percent at September 30, 2020.

ASSET QUALITY

The ratio of nonperforming loans and leases to total loans and leases was 0.52 percent at September 30, 2021, an increase from 0.49 percent at June 30, 2021. Total nonaccrual loans and leases increased $1.7 million to $35.9 million at September 30, 2021 from $34.2 million at June 30, 2021. The ratio of nonperforming assets to total assets was 0.44 percent at September 30, 2021, an increase from 0.41 percent at June 30, 2021. Total nonperforming assets increased $1.9 million to $36.5 million at September 30, 2021 from $34.6 million at June 30, 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 September 30, 2021, approximately 94 percent of loans granted an initial loan payment deferral have returned to payment status and 77 credits totaling $55.7 million, or 0.8 percent of total loans outstanding, are operating under modified terms.

NON-INTEREST EXPENSE

Non-interest expense for the quarter ended September 30, 2021 increased $2.9 million to $40.9 million from $38.0 million for the quarter ended June 30, 2021. The increase was primarily driven by an increase of $2.0 million in compensation and employee benefits expense due to a bonus compensation adjustment and higher retirement plan expense in the third quarter, and an increase of $1.5 million in other non-interest expense due to a $2.1 million gain on sale of other real estate owned in the second quarter, partially offset by a decrease of $0.3 million in occupancy expense, a decrease of $0.1 million in equipment and data processing expense, and a decrease of $0.2 million in professional services expense.

PROVISION FOR INCOME TAXES

The effective tax rate was 25.0 percent and 25.1 percent for the three and nine months ended September 30, 2021 compared to 25.4 percent for the three months ended June 30, 2021 and 26.2 percent and 23.9 percent for the three and nine months ended September 30, 2020.

RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

The annualized return on average assets decreased to 1.38 percent during the third quarter 2021 from 1.48 percent for the second quarter of 2021.

The annualized return on average stockholders' equity decreased to 11.79 percent during the third quarter of 2021 from 13.21 percent for the second quarter of 2021. The annualized return on average tangible stockholders' equity decreased to 14.15 percent for the third quarter of 2021 from 15.92 percent for the second quarter of 2021.

DIVIDEND DECLARED

The Company's Board of Directors approved a dividend of $0.125 per share for the quarter ended September 30, 2021, representing an increase of 4.2 percent from the prior quarter. The dividend will be paid on November 26, 2021 to stockholders of record on November 12, 2021.

STOCK REPURCHASE

As previously disclosed, on January 27, 2021, the Company's Board of Directors approved a stock repurchase program authorizing management to repurchase up to $10.0 million of the Company's common stock commencing on February 1, 2021 and ending on December 31, 2021. As of September 30, 2021, the Company completed the program.

CONFERENCE CALL

The Company will conduct a conference call/webcast at 1:30 PM Eastern Daylight Time on Thursday, October 28, 2021 to discuss the results for the quarter, business highlights and outlook. A copy of the Earnings Presentation is available on the Company's website, www.brooklinebancorp.com. To listen to the call and view the Company's Earnings Presentation, please join the call via https://services.choruscall.com/links/brkl211028.html. To listen to the call without access to the slides, interested parties may dial 844-200-6205 (United States) or 929-526-1599 (internationally) and ask for the Brookline Bancorp, Inc. conference call (Access Code 996258). A recorded playback of the call will be available for one week following the call on the Company's website under "Investor Relations" or by dialing 866-813-9403 (United States) or 1-929-458-6194 (internationally) and entering the passcode: 495902.

ABOUT BROOKLINE BANCORP, INC.

Brookline Bancorp, Inc., a bank holding company with $8.3 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 Company's business, credit quality, financial condition, liquidity and results of operations. Forward-looking statements made with regard to the potential effects of the COVID-19 pandemic on the Company's 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 Company's control. These included, but are not limited to, general business and economic conditions on a national basis and in the local markets in which the Company operates; changes in consumer behavior due to changing political business and economic conditions or legislative or regulatory initiatives; the possibility that future credit losses may be higher than currently expected; reputational risk relating to the Company's 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 Company's actual results could differ materially from those projected in the forward-looking statements as a result of, among others, the risks outlined in the Company's Annual Report on Form 10-K, as updated by its Quarterly Reports on Form 10-Q and other filings submitted to the SEC. The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.

BASIS OF PRESENTATION

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

NON-GAAP FINANCIAL MEASURES

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

INVESTOR RELATIONS:

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

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Selected Financial Highlights (Unaudited)

	At and for the Three Months Ended
	September 30, 2021			June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020
	(Dollars In Thousands Except per Share Data)
Earnings Data:
Net interest income	$	70,697		$	71,106		$	69,109		$	68,225		$	65,938
(Credit) provision for credit losses		(3,110	)		(3,331	)		(2,147	)		(2,103	)		4,528
Non-interest income		5,586			5,910			4,794			4,219			4,862
Non-interest expense		40,922			37,966			40,811			40,038			40,947
Income before provision for income taxes		38,471			42,381			35,239			34,509			25,325
Net income		28,839			31,602			26,454			26,663			18,679

Performance Ratios:
Net interest margin (1)		3.53	%		3.52	%		3.39	%		3.23	%		3.08	%
Interest-rate spread (1)		3.39	%		3.34	%		3.15	%		3.03	%		2.85	%
Return on average assets (annualized)		1.38	%		1.48	%		1.21	%		1.20	%		0.83	%
Return on average tangible assets (annualized) (non-GAAP)		1.41	%		1.51	%		1.24	%		1.22	%		0.84	%
Return on average stockholders' equity (annualized)		11.79	%		13.21	%		11.18	%		11.38	%		7.99	%
Return on average tangible stockholders' equity (annualized) (non-GAAP)		14.15	%		15.92	%		13.51	%		13.79	%		9.70	%
Efficiency ratio (2)		53.64	%		49.30	%		55.22	%		55.27	%		57.83	%

Per Common Share Data:
Net income — Basic	$	0.37		$	0.40		$	0.34		$	0.34		$	0.24
Net income — Diluted		0.37			0.40			0.34			0.34			0.24
Cash dividends declared		0.125			0.120			0.120			0.115			0.115
Book value per share (end of period)		12.61			12.44			12.10			12.05			11.84
Tangible book value per share (end of period) (non-GAAP)		10.51			10.35			10.01			9.96			9.77
Stock price (end of period)		15.26			14.95			15.00			12.04			8.65

Balance Sheet:
Total assets	$	8,312,649		$	8,461,964		$	8,559,810		$	8,942,424		$	9,000,192
Total loans and leases		6,931,694			7,020,275			7,267,552			7,269,553			7,396,358
Total deposits		6,873,010			6,894,701			6,866,786			6,910,696			6,792,523
Total stockholders' equity		978,452			972,252			945,399			941,778			935,558

Asset Quality:
Nonperforming assets	$	36,461		$	34,588		$	37,403		$	44,963		$	39,365
Nonperforming assets as a percentage of total assets		0.44	%		0.41	%		0.44	%		0.50	%		0.44	%
Allowance for loan and lease losses	$	102,515		$	106,474		$	109,837		$	114,379		$	119,971
Allowance for loan and lease losses as a percentage of total loans and leases		1.48	%		1.52	%		1.51	%		1.57	%		1.62	%
Net loan and lease charge-offs	$	1,255		$	595		$	1,760		$	4,381		$	4,963
Net loan and lease charge-offs as a percentage of average loans and leases (annualized)		0.07	%		0.03	%		0.10	%		0.24	%		0.27	%

Capital Ratios:
Stockholders' equity to total assets		11.77	%		11.49	%		11.04	%		10.53	%		10.39	%
Tangible stockholders' equity to tangible assets (non-GAAP)		10.01	%		9.75	%		9.31	%		8.86	%		8.73	%

(1) Calculated on a fully tax-equivalent basis.
(2) Calculated as non-interest expense as a percentage of net interest income plus non-interest income.

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets (Unaudited)
	September 30, 2021			June 30, 2021			March 31, 2021			December 30, 2020			September 30, 2020
ASSETS	(In Thousands Except Share Data)
Cash and due from banks	$	28,865		$	36,079		$	41,284		$	36,069		$	33,818
Short-term investments		210,279			284,370			89,643			398,848			283,515
Total cash and cash equivalents		239,144			320,449			130,927			434,917			317,333
Investment securities available-for-sale		732,020			694,151			729,901			745,822			783,867
Equity securities held-for-trading		-			-			518			526			525
Total investment securities		732,020			694,151			730,419			746,348			784,392
Loans and leases:
Commercial real estate loans		3,909,011			3,815,581			3,790,341			3,823,826			3,835,372
Commercial loans and leases		1,869,686			2,038,851			2,324,202			2,274,899			2,354,613
Consumer loans		1,152,997			1,165,843			1,153,009			1,170,828			1,206,373
Total loans and leases		6,931,694			7,020,275			7,267,552			7,269,553			7,396,358
Allowance for loan and lease losses		(102,515	)		(106,474	)		(109,837	)		(114,379	)		(119,971	)
Net loans and leases		6,829,179			6,913,801			7,157,715			7,155,174			7,276,387
Restricted equity securities		28,098			31,627			40,400			49,786			61,715
Premises and equipment, net of accumulated depreciation		70,811			71,240			72,524			71,568			72,441
Right-of-use asset operating leases		21,879			22,682			23,180			24,143			23,492
Deferred tax asset		39,643			41,324			42,857			40,129			42,269
Goodwill		160,427			160,427			160,427			160,427			160,427
Identified intangible assets, net of accumulated amortization		2,484			2,692			2,920			3,152			3,464
Other real estate owned and repossessed assets		601			372			6,383			6,515			1,413
Other assets		188,363			203,199			192,058			250,265			256,859
Total assets	$	8,312,649		$	8,461,964		$	8,559,810		$	8,942,424		$	9,000,192
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand checking accounts	$	1,816,116		$	1,926,713		$	1,724,170		$	1,592,205		$	1,550,267
NOW accounts		513,032			495,598			481,988			513,948			459,902
Savings accounts		823,095			782,482			724,504			701,659			716,630
Money market accounts		2,393,362			2,250,651			2,192,468			2,018,977			1,878,258
Certificate of deposit accounts		1,141,861			1,178,131			1,273,105			1,389,998			1,492,913
Brokered deposit accounts		185,544			261,126			470,551			693,909			694,553
Total deposits		6,873,010			6,894,701			6,866,786			6,910,696			6,792,523
Borrowed funds:
Advances from the FHLBB		113,977			204,154			378,646			648,849			841,169
Subordinated debentures and notes		83,859			83,821			83,783			83,746			83,707
Other borrowed funds		69,703			75,039			83,574			87,652			80,169
Total borrowed funds		267,539			363,014			546,003			820,247			1,005,045
Operating lease liabilities		21,879			22,682			23,180			24,143			23,492
Mortgagors' escrow accounts		6,455			6,231			6,483			5,901			6,429
Reserve for unfunded credits		12,736			13,142			13,705			13,071			13,964
Accrued expenses and other liabilities		152,578			189,942			158,254			226,588			223,181
Total liabilities		7,334,197			7,489,712			7,614,411			8,000,646			8,064,634
Stockholders' equity:
Common stock, $0.01 par value; 200,000,000 shares authorized; 85,177,172 shares issued, 85,177,172 shares issued, 85,177,172 shares issued, 85,177,172 shares issued, and 85,177,172 shares issued, respectively		852			852			852			852			852
Additional paid-in capital		735,990			738,557			737,882			737,178			736,294
Retained earnings, partially restricted		323,862			304,466			282,301			264,892			247,336
Accumulated other comprehensive income		2,615			6,089			2,082			16,490			18,782
Treasury stock, at cost;
7,034,754, 6,536,478, 6,534,602, 6,525,783, and 5,629,854 shares, respectively		(84,684	)		(77,493	)		(77,463	)		(77,343	)		(67,376	)
Unallocated common stock held by the Employee Stock Ownership Plan;
31,278, 37,890, 44,502, 51,114, and 58,227 shares, respectively		(183	)		(219	)		(255	)		(291	)		(330	)
Total stockholders' equity		978,452			972,252			945,399			941,778			935,558
Total liabilities and stockholders' equity	$	8,312,649		$	8,461,964		$	8,559,810		$	8,942,424		$	9,000,192

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
	Three Months Ended
	September 30, 2021			June 30, 2021			March 31, 2021			December 30, 2020			September 30, 2020
	(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases	$	74,332		$	75,026		$	75,009		$	76,583		$	76,240
Debt securities		2,967			3,121			3,118			3,335			3,746
Marketable and restricted equity securities		313			233			301			490			672
Short-term investments		83			42			39			59			46
Total interest and dividend income		77,695			78,422			78,467			80,467			80,704
Interest expense:
Deposits		4,571			5,380			6,707			8,825			10,583
Borrowed funds		2,427			1,936			2,651			3,417			4,183
Total interest expense		6,998			7,316			9,358			12,242			14,766
Net interest income		70,697			71,106			69,109			68,225			65,938
(Credit) provision for credit losses		(3,110	)		(3,331	)		(2,147	)		(2,103	)		4,528
Net interest income after provision for credit losses		73,807			74,437			71,256			70,328			61,410
Non-interest income:
Deposit fees		2,629			3,015			2,281			2,358			2,305
Loan fees		487			607			599			588			397
Loan level derivative income, net		218			7			474			145			527
Gain (loss) on investment securities, net		-			1			(7	)		-			54
Gain on sales of loans and leases held-for-sale		557			538			709			67			632
Other		1,695			1,742			738			1,061			947
Total non-interest income		5,586			5,910			4,794			4,219			4,862
Non-interest expense:
Compensation and employee benefits		27,206			25,161			25,821			25,054			26,092
Occupancy		3,567			3,832			4,004			3,806			3,802
Equipment and data processing		4,556			4,697			4,493			4,193			4,293
Professional services		1,072			1,245			1,226			1,338			1,112
FDIC insurance		662			657			1,044			1,630			1,363
Advertising and marketing		1,077			1,110			1,100			1,010			1,024
Amortization of identified intangible assets		208			228			232			312			312
Other		2,574			1,036			2,891			2,695			2,949
Total non-interest expense		40,922			37,966			40,811			40,038			40,947
Income before provision for income taxes		38,471			42,381			35,239			34,509			25,325
Provision for income taxes		9,632			10,779			8,785			7,846			6,646
Net income	$	28,839		$	31,602		$	26,454		$	26,663		$	18,679
Earnings per common share:
Basic	$	0.37		$	0.40		$	0.34		$	0.34		$	0.24
Diluted	$	0.37		$	0.40		$	0.34		$	0.34		$	0.24
Weighted average common shares outstanding during the period:
Basic		78,000,261			78,150,364			78,143,752			78,533,351			78,948,139
Diluted		78,240,633			78,470,451			78,404,063			78,680,873			79,055,901
Dividends paid per common share	$	0.120		$	0.120		$	0.115		$	0.115		$	0.115

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

	Nine Months Ended September 30,
	2021			2020
	(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases	$	224,367		$	233,215
Debt securities		9,206			10,423
Marketable and restricted equity securities		847			2,358
Short-term investments		164			354
Total interest and dividend income		234,584			246,350
Interest expense:
Deposits		16,658			39,601
Borrowed funds		7,014			14,811
Total interest expense		23,672			54,412
Net interest income		210,912			191,938
(Credit) provision for credit losses		(8,588	)		63,989
Net interest income after provision for credit losses		219,500			127,949
Non-interest income:
Deposit Fees		7,925			6,692
Loan Fees		1,647			1,460
Loan level derivative income, net		699			4,123
(Loss) gain on investment securities, net		(6	)		1,970
Gain on sales of loans and leases held-for-sale		1,804			1,051
Other		4,221			5,129
Total non-interest income		16,290			20,425
Non-interest expense:
Compensation and employee benefits		78,188			75,931
Occupancy		11,403			11,580
Equipment and data processing		13,746			13,152
Professional services		3,543			3,819
FDIC insurance		2,363			2,599
Advertising and marketing		3,287			3,116
Amortization of identified intangible assets		668			959
Other		6,501			9,650
Total non-interest expense		119,699			120,806
Income before provision for income taxes		116,091			27,568
Provision for income taxes		29,196			6,596
Net income	$	86,895		$	20,972
Earnings per common share:
Basic	$	1.11		$	0.27
Diluted	$	1.11		$	0.27
Weighted average common shares outstanding during the period:
Basic		78,097,600			79,092,424
Diluted		78,371,190			79,245,113
Dividends paid per common share	$	0.355		$	0.345

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Asset Quality Analysis (Unaudited)
	At and for the Three Months Ended
	September 30, 2021			June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020
	(Dollars in Thousands)
NONPERFORMING ASSETS:
Loans and leases accounted for on a nonaccrual basis:
Commercial real estate mortgage	$	10,963		$	11,657		$	3,611		$	3,300		$	10,841
Multi-family mortgage		-			-			-			-			-
Construction		-			-			3,853			3,853			-
Total commercial real estate loans		10,963			11,657			7,464			7,153			10,841

Commercial		2,539			3,207			3,161			7,702			7,751
Equipment financing		17,655			14,872			15,772			16,757			13,372
Condominium association		91			97			106			112			117
Total commercial loans and leases		20,285			18,176			19,039			24,571			21,240

Residential mortgage		4,150			3,638			3,722			5,587			4,634
Home equity		461			744			793			1,136			1,235
Other consumer		1			1			2			1			2
Total consumer loans		4,612			4,383			4,517			6,724			5,871

Total nonaccrual loans and leases		35,860			34,216			31,020			38,448			37,952

Other real estate owned		-			-			5,328			5,415			-
Other repossessed assets		601			372			1,055			1,100			1,413
Total nonperforming assets	$	36,461		$	34,588		$	37,403		$	44,963		$	39,365

Loans and leases past due greater than 90 days and still accruing	$	838		$	3,154		$	1,179		$	11,975		$	1,180

Troubled debt restructurings on accrual		13,526			14,387			16,770			11,483			11,309
Troubled debt restructurings on nonaccrual		6,655			6,410			6,293			7,476			5,742
Total troubled debt restructurings	$	20,181		$	20,797		$	23,063		$	18,959		$	17,051

Nonperforming loans and leases as a percentage of total loans and leases		0.52	%		0.49	%		0.43	%		0.53	%		0.51	%
Nonperforming assets as a percentage of total assets		0.44	%		0.41	%		0.44	%		0.50	%		0.44	%

PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:
Allowance for loan and lease losses at beginning of period	$	106,474		$	109,837		$	114,379		$	119,971		$	119,553
CECL adjustment to retained earnings		-			-			-			-			-
Charge-offs		(1,600	)		(1,221	)		(2,143	)		(4,810	)		(5,511	)
Recoveries		345			626			383			429			548
Net charge-offs		(1,255	)		(595	)		(1,760	)		(4,381	)		(4,963	)
(Credit) provision for loan and lease losses excluding unfunded commitments *		(2,704	)		(2,768	)		(2,782	)		(1,211	)		5,381
Allowance for loan and lease losses at end of period	$	102,515		$	106,474		$	109,837		$	114,379		$	119,971

Allowance for loan and lease losses as a percentage of total loans and leases		1.48	%		1.52	%		1.51	%		1.57	%		1.62	%

NET CHARGE-OFFS:
Commercial real estate loans	$	(1	)	$	17		$	-		$	3,444		$	70
Commercial loans and leases		1,276			695			1,809			1,011			4,917
Consumer loans		(20	)		(117	)		(49	)		(74	)		(24	)
Total net charge-offs	$	1,255		$	595		$	1,760		$	4,381		$	4,963

Net loan and lease charge-offs as a percentage of average loans and leases (annualized)		0.07	%		0.03	%		0.10	%		0.24	%		0.27	%

*Provision for loan and lease losses does not include (credit) provision of $(0.4) million, $(0.6) million, $0.6 million, $(0.9) million and $(0.9) million for credit losses on unfunded commitments during the three months ended September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020 and September 30, 2020, respectively.

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Average Yields / Costs (Unaudited)
	Three Months Ended
	September 30, 2021						June 30, 2021						September 30, 2020
	Average Balance		Interest (1)		Average Yield/ Cost		Average Balance		Interest (1)		Average Yield/ Cost		Average Balance		Interest (1)		Average Yield/ Cost
	(Dollars in Thousands)
Assets:
Interest-earning assets:
Investments:
Debt securities (2)	$	713,593	$	2,967	1.66	%	$	721,029	$	3,121	1.73	%	$	851,608	$	3,746	1.76	%
Marketable and restricted equity securities (2)		28,877		313	4.33	%		34,989		233	2.67	%		66,154		670	4.06	%
Short-term investments		220,110		83	0.15	%		234,317		42	0.07	%		192,446		46	0.10	%
Total investments		962,580		3,363	1.40	%		990,335		3,396	1.37	%		1,110,208		4,462	1.61	%
Loans and Leases:
Commercial real estate loans (3)		3,851,677		35,124	3.57	%		3,780,920		34,320	3.59	%		3,831,826		35,615	3.64	%
Commercial loans (3)		901,862		11,715	5.09	%		1,115,910		13,040	4.62	%		1,281,202		10,677	3.27	%
Equipment financing (3)		1,079,059		17,725	6.57	%		1,074,469		17,963	6.69	%		1,089,058		19,018	6.99	%
Residential mortgage loans (3)		788,874		6,989	3.54	%		788,296		6,927	3.51	%		814,559		7,860	3.86	%
Other consumer loans (3)		364,914		2,830	3.07	%		368,845		2,833	3.08	%		395,990		3,127	3.13	%
Total loans and leases		6,986,386		74,383	4.26	%		7,128,440		75,083	4.21	%		7,412,635		76,297	4.12	%
Total interest-earning assets		7,948,966		77,746	3.91	%		8,118,775		78,479	3.87	%		8,522,843		80,759	3.79	%
Non-interest-earning assets		411,669						421,453						495,829
Total assets	$	8,360,635					$	8,540,228					$	9,018,672

Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts	$	502,093		116	0.09	%	$	499,883		146	0.12	%	$	427,009		128	0.12	%
Savings accounts		785,657		248	0.12	%		774,406		248	0.13	%		688,223		258	0.15	%
Money market accounts		2,387,080		1,616	0.27	%		2,247,997		1,497	0.27	%		1,855,803		1,658	0.36	%
Certificates of deposit		1,160,113		2,430	0.83	%		1,226,668		3,102	1.01	%		1,536,969		7,022	1.82	%
Brokered deposit accounts		216,112		161	0.30	%		418,166		387	0.37	%		562,112		1,517	1.07	%
Total interest-bearing deposits		5,051,055		4,571	0.36	%		5,167,120		5,380	0.42	%		5,070,116		10,583	0.83	%
Borrowings
Advances from the FHLBB		119,043		1,152	3.79	%		250,102		663	1.05	%		944,865		2,876	1.19	%
Subordinated debentures and notes		83,840		1,242	5.92	%		83,802		1,242	5.93	%		83,687		1,246	5.96	%
Other borrowed funds		76,380		33	0.17	%		74,285		31	0.17	%		118,969		61	0.21	%
Total borrowings		279,263		2,427	3.40	%		408,189		1,936	1.88	%		1,147,521		4,183	1.43	%
Total interest-bearing liabilities		5,330,318		6,998	0.52	%		5,575,309		7,316	0.53	%		6,217,637		14,766	0.94	%
Non-interest-bearing liabilities:
Demand checking accounts		1,827,501						1,785,023						1,569,411
Other non-interest-bearing liabilities		224,445						222,689						296,992
Total liabilities		7,382,264						7,583,021						8,084,040
Stockholders' equity		978,371						957,207						934,632
Total liabilities and equity	$	8,360,635					$	8,540,228					$	9,018,672
Net interest income (tax-equivalent basis) /Interest-rate spread (4)				70,748	3.39	%				71,163	3.34	%				65,993	2.85	%
Less adjustment of tax-exempt income				51						57						55
Net interest income			$	70,697					$	71,106					$	65,938
Net interest margin (5)					3.53	%					3.52	%					3.08	%

(1) Tax-exempt income on debt securities, equity securities and revenue bonds included in commercial real estate loans is included on a tax-equivalent basis.
(2) Average balances include unrealized gains (losses) on investment securities. Dividend payments may not be consistent and average yield on equity securities may vary from month to month.
(3) Loans on nonaccrual status are included in the average balances.
(4) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
(5) Net interest margin represents net interest income (tax-equivalent basis) divided by average interest-earning assets on an actual/actual basis.

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Average Yields / Costs (Unaudited)
	Nine Months Ended
	September 30, 2021						September 30, 2020
	Average Balance		Interest (1)		Average Yield/ Cost		Average Balance		Interest (1)		Average Yield/ Cost
	(Dollars in Thousands)
Assets:
Interest-earning assets:
Investments:
Debt securities (2)	$	729,623	$	9,206	1.68	%	$	744,065	$	10,489	1.88	%
Marketable and restricted equity securities (2)		36,451		847	3.10	%		65,367		2,371	4.84	%
Short-term investments		215,496		164	0.10	%		174,177		354	0.27	%
Total investments		981,570		10,217	1.39	%		983,609		13,214	1.79	%
Loans and Leases:
Commercial real estate loans (3)		3,806,405		103,689	3.59	%		3,763,750		112,912	3.94	%
Commercial loans (3)		1,087,924		37,501	4.55	%		1,100,346		29,455	3.52	%
Equipment financing (3)		1,077,522		53,731	6.65	%		1,070,433		56,937	7.09	%
Residential mortgage loans (3)		786,015		21,148	3.59	%		813,196		23,862	3.91	%
Other consumer loans (3)		369,744		8,458	3.05	%		408,332		10,235	3.33	%
Total loans and leases		7,127,610		224,527	4.20	%		7,156,057		233,401	4.35	%
Total interest-earning assets		8,109,180		234,744	3.86	%		8,139,666		246,615	4.04	%
Non-interest-earning assets		427,880						479,809
Total assets	$	8,537,060					$	8,619,475

Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts	$	493,378		392	0.11	%	$	394,057		358	0.12	%
Savings accounts		757,864		731	0.13	%		659,754		1,258	0.25	%
Money market accounts		2,240,968		4,599	0.27	%		1,773,234		7,973	0.60	%
Certificates of deposit		1,237,682		9,686	1.05	%		1,618,818		24,637	2.03	%
Brokered deposit accounts		413,588		1,250	0.40	%		434,409		5,375	1.65	%
Total interest-bearing deposits		5,143,480		16,658	0.43	%		4,880,272		39,601	1.08	%
Borrowings
Advances from the FHLBB		284,540		3,185	1.48	%		939,821		10,724	1.50	%
Subordinated debentures and notes		83,802		3,726	5.93	%		83,648		3,793	6.05	%
Other borrowed funds		80,960		103	0.17	%		93,698		294	0.42	%
Total borrowings		449,302		7,014	2.06	%		1,117,167		14,811	1.74	%
Total interest-bearing liabilities		5,592,782		23,672	0.57	%		5,997,439		54,412	1.21	%
Non-interest-bearing liabilities:
Demand checking accounts		1,752,640						1,405,871
Other non-interest-bearing liabilities		230,834						280,499
Total liabilities		7,576,256						7,683,809
Stockholders' equity		960,804						935,666
Total liabilities and equity	$	8,537,060					$	8,619,475
Net interest income (tax-equivalent basis) /Interest-rate spread (4)				211,072	3.29	%				192,203	2.83	%
Less adjustment of tax-exempt income				160						265
Net interest income			$	210,912					$	191,938
Net interest margin (5)					3.48	%					3.15	%

(1) Tax-exempt income on debt securities, equity securities and revenue bonds included in commercial real estate loans is included on a tax-equivalent basis.
(2) Average balances include unrealized gains (losses) on investment securities. Dividend payments may not be consistent and average yield on equity securities may vary from month to month.
(3) Loans on nonaccrual status are included in the average balances.
(4) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
(5) Net interest margin represents net interest income (tax-equivalent basis) divided by average interest-earning assets on an actual/actual basis.

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Non-GAAP Financial Information (Unaudited)
				At and for the Three Months Ended September 30,						At and for the Nine Months Ended September 30,
				2021			2020			2021			2020
Reconciliation Table - Non-GAAP Financial Information				(Dollars in Thousands Except Share Data)

Net income				$	28,839		$	18,679		$	86,895		$	20,972
Less:
Security gains (losses) (after-tax)					-			40			(4	)		1,499
Operating earnings				$	28,839		$	18,639		$	86,899		$	19,473

Operating earnings per common share:
Basic				$	0.37		$	0.24		$	1.11		$	0.25
Diluted					0.37			0.24			1.11			0.25

Weighted average common shares outstanding during the period:
Basic					78,000,261			78,948,139			78,097,600			79,092,424
Diluted					78,240,633			79,055,901			78,371,190			79,245,113


Return on average assets *					1.38	%		0.83	%		1.36	%		0.32	%
Less:
Security gains (losses) (after-tax) *					-	%		-	%		-	%		0.02	%
Operating return on average assets *					1.38	%		0.83	%		1.36	%		0.30	%


Return on average tangible assets *					1.41	%		0.84	%		1.38	%		0.33	%
Less:
Security gains (losses) (after-tax) *					-	%		-	%		-	%		0.02	%
Operating return on average tangible assets *					1.41	%		0.84	%		1.38	%		0.31	%


Return on average stockholders' equity *					11.79	%		7.99	%		12.06	%		2.99	%
Less:
Security gains (losses) (after-tax) *					-	%		0.01	%		-	%		0.22	%
Operating return on average stockholders' equity *					11.79	%		7.98	%		12.06	%		2.77	%


Return on average tangible stockholders' equity *					14.15	%		9.70	%		14.53	%		3.63	%
Less:
Security gains (losses) (after-tax) *					-	%		0.02	%		-	%		0.26	%
Operating return on average tangible stockholders' equity *					14.15	%		9.68	%		14.53	%		3.37	%

* Ratios at and for the three and nine months ended are annualized.


	At and for the Three Months Ended
	September 30, 2021			June 30, 2021			March 31, 2021			December 30, 2020			September 30, 2020
	(Dollars in Thousands)

Net income, as reported	$	28,839		$	31,602		$	26,454		$	26,663		$	18,679

Average total assets	$	8,360,635		$	8,540,228		$	8,714,158		$	8,874,467		$	9,018,672
Less: Average goodwill and average identified intangible assets, net		163,011			163,224			163,457			163,758			164,072
Average tangible assets	$	8,197,624		$	8,377,004		$	8,550,701		$	8,710,709		$	8,854,600

Return on average tangible assets (annualized)		1.41	%		1.51	%		1.24	%		1.22	%		0.84	%

Average total stockholders' equity	$	978,371		$	957,207		$	946,482		$	937,294		$	934,632
Less: Average goodwill and average identified intangible assets, net		163,011			163,224			163,457			163,758			164,072
Average tangible stockholders' equity	$	815,360		$	793,983		$	783,025		$	773,536		$	770,560

Return on average tangible stockholders' equity (annualized)		14.15	%		15.92	%		13.51	%		13.79	%		9.70	%

Total stockholders' equity	$	978,452		$	972,252		$	945,399		$	941,778		$	935,558
Less:
Goodwill		160,427			160,427			160,427			160,427			160,427
Identified intangible assets, net		2,484			2,692			2,920			3,152			3,464
Tangible stockholders' equity	$	815,541		$	809,133		$	782,052		$	778,199		$	771,667

Total assets	$	8,312,649		$	8,461,964		$	8,559,810		$	8,942,424		$	9,000,192
Less:
Goodwill		160,427			160,427			160,427			160,427			160,427
Identified intangible assets, net		2,484			2,692			2,920			3,152			3,464
Tangible assets	$	8,149,738		$	8,298,845		$	8,396,463		$	8,778,845		$	8,836,301

Tangible stockholders' equity to tangible assets		10.01	%		9.75	%		9.31	%		8.86	%		8.73	%

Tangible stockholders' equity	$	815,541		$	809,133		$	782,052		$	778,199		$	771,667

Number of common shares issued		85,177,172			85,177,172			85,177,172			85,177,172			85,177,172
Less:
Treasury shares		7,034,754			6,536,478			6,534,602			6,525,783			5,629,854
Unallocated ESOP shares		31,278			37,890			44,502			51,114			58,227
Unvested restricted shares		502,808			448,105			449,981			458,800			487,318
Number of common shares outstanding		77,608,332			78,154,699			78,148,087			78,141,475			79,001,773

Tangible book value per common share	$	10.51		$	10.35		$	10.01		$	9.96		$	9.77

Allowance for loan and lease losses	$	102,515		$	106,474		$	109,837		$	114,379		$	119,971

Total loans and leases	$	6,931,694		$	7,020,275		$	7,267,552		$	7,269,553		$	7,396,358
Less:
Total PPP loans		160,586			348,411			604,790			489,216			568,383
Total loans and leases excluding PPP loans	$	6,771,108		$	6,671,864		$	6,662,762		$	6,780,337		$	6,827,975

Allowance for loan and lease losses as a percentage of total loans and leases less PPP loans		1.51	%		1.60	%		1.65	%		1.69	%		1.76	%

PDF available: http://ml.globenewswire.com/Resource/Download/cfa60d81-3363-4926-9d8f-9fb6fbb27f19

Brookline Bancorp Announces Third Quarter Results