Brookline Bancorp Announces Second Quarter Results

Rhea-AI Summary

Brookline Bancorp reported a net income of $25.2 million, or $0.33 per share, for Q2 2022, an increase from $24.7 million in Q1 2022 but a decrease from $31.6 million in Q2 2021. Total assets fell by $119.5 million to $8.51 billion. Core loan portfolio growth was $81.7 million, down from $122.4 million in Q1. Non-interest income rose to $6.9 million, while non-interest expenses increased to $44.9 million. The dividend of $0.130 per share was declared, and the planned merger with PCSB Financial is expected in H2 2022.

Positive

• Net interest income increased by $2.1 million to $71.9 million in Q2 2022.
• Annualized return on average assets rose to 1.18% from 1.16% in Q1 2022.
• Core loan portfolio grew by $81.7 million.

Negative

• Net income declined from $31.6 million in Q2 2021 to $25.2 million in Q2 2022.
• Total assets decreased by $119.5 million compared to Q1 2022.
• Total deposits fell by $199.9 million from Q1 2022.

Net Income of $25.2 million, EPS of $0.33

BOSTON, July 27, 2022 (GLOBE NEWSWIRE) -- Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced net income of $25.2 million, or $0.33 per basic and diluted share, for the second quarter of 2022, compared to net income of $24.7 million, or $0.32 per basic and diluted share, for the first quarter of 2022, and net income of $31.6 million, or $0.40 per basic and diluted share, for the second quarter of 2021.

“I am pleased to share that Brookline Bancorp maintained its consistent strong performance throughout the second quarter of 2022,” said Paul Perrault, Chairman and Chief Executive Officer of the Company. “During the quarter, we generated steady loan growth and asset quality remained strong. I am proud of our employees who work together to exemplify the Brookline Bancorp culture of providing excellent customer service and whose efforts contribute to the continued growth of our Company.”

BALANCE SHEET

Total assets at June 30, 2022 decreased $119.5 million to $8.51 billion from $8.63 billion at March 31, 2022, and increased $52.3 million from $8.46 billion at June 30, 2021. At June 30, 2022, total loans and leases were $7.3 billion, representing an increase of $68.8 million from March 31, 2022, and an increase of $271.6 million from June 30, 2021. Excluding U.S. Small Business Administration Paycheck Protection Program ("PPP") loan activity, the core loan portfolio grew $81.7 million in the second quarter compared to growth of $122.4 million in the first quarter.

Total investment securities at June 30, 2022 decreased $12.8 million to $717.8 million from $730.6 million at March 31, 2022, and increased $23.6 million from $694.2 million at June 30, 2021. Total cash and cash equivalents at June 30, 2022 decreased $203.0 million to $90.3 million from $293.3 million at March 31, 2022, and decreased $230.1 million from $320.4 million at June 30, 2021. As of June 30, 2022, total investment securities and total cash and cash equivalents represented 9.5 percent of total assets as compared to 11.9 percent and 12.0 percent as of March 31, 2022 and June 30, 2021, respectively.

Total deposits at June 30, 2022 decreased $199.9 million to $6.89 billion from $7.09 billion at March 31, 2022, and decreased $0.2 million from $6.89 billion at June 30, 2021.

Total borrowed funds at June 30, 2022 increased $85.3 million to $478.2 million from $392.9 million at March 31, 2022, and increased $115.2 million from $363.0 million at June 30, 2021.

The ratio of stockholders’ equity to total assets was 11.38 percent at June 30, 2022, as compared to 11.37 percent at March 31, 2022, and 11.49 percent at June 30, 2021. The ratio of tangible stockholders’ equity to tangible assets (non-GAAP) was 9.65 percent at June 30, 2022, as compared to 9.67 percent at March 31, 2022, and 9.75 percent at June 30, 2021. Tangible book value per share (non-GAAP) decreased $0.05 from $10.56 at March 31, 2022 to $10.51 at June 30, 2022, compared to $10.35 at June 30, 2021.

NET INTEREST INCOME

Net interest income increased $2.1 million to $71.9 million for the second quarter of 2022 from $69.8 million for the quarter ended March 31, 2022. The net interest margin increased 7 basis points to 3.56 percent for the three months ended June 30, 2022 from 3.49 percent for the three months ended March 31, 2022.

NON-INTEREST INCOME

Total non-interest income for the quarter ended June 30, 2022 increased $1.4 million to $6.9 million from $5.5 million for the quarter ended March 31, 2022. The increase was primarily driven by an increase of $0.9 million in loan level derivative income, net, an increase of $0.4 million in other non-interest income, and an increase of $0.2 million in deposit fees, partially offset by a decrease of $0.1 million in loan fees.

PROVISION FOR CREDIT LOSSES

The Company recorded a provision for credit losses of $0.2 million for the quarter ended June 30, 2022, compared to a negative provision for credit losses of $0.2 million for the quarter ended March 31, 2022. Total net charge-offs for the second quarter of 2022 were $1.2 million compared to $1.9 million in the first quarter of 2022. The decrease was primarily driven by a decrease in net charge-offs on equipment financing loans of $1.0 million, partially offset by an increase in net charge-offs on commercial loans of $0.3 million. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis decreased to 7 basis points for the second quarter of 2022 from 11 basis points for the first quarter of 2022.

The allowance for loan and lease losses represented 1.28 percent of total loans and leases at June 30, 2022, compared to 1.32 percent at March 31, 2022, and 1.52 percent at June 30, 2021.

ASSET QUALITY

The ratio of nonperforming loans and leases to total loans and leases was 0.28 percent at June 30, 2022, a decrease from 0.35 percent at March 31, 2022. Total nonaccrual loans and leases decreased $4.7 million to $20.8 million at June 30, 2022 from $25.5 million at March 31, 2022. The ratio of nonperforming assets to total assets was 0.25 percent at June 30, 2022, a decrease from 0.31 percent at March 31, 2022. Total nonperforming assets decreased $5.2 million to $21.3 million at June 30, 2022 from $26.5 million at March 31, 2022.

NON-INTEREST EXPENSE

Non-interest expense for the quarter ended June 30, 2022 increased $2.4 million to $44.9 million from $42.5 million for the quarter ended March 31, 2022. The increase was primarily driven by an increase of $1.9 million in compensation and employee benefits expense, an increase of $0.5 million in other non-interest expense, and an increase of $0.5 million in merger and acquisition expense, partially offset by a decrease of $0.5 million in occupancy expense.

PROVISION FOR INCOME TAXES

The effective tax rate was 25.2 percent for both the three and six months ended June 30, 2022 compared to 25.2 percent for the three months ended March 31, 2022 and 25.4 percent and 25.2 percent for the three and six months ended June 30, 2021.

RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

The annualized return on average assets increased to 1.18 percent during the second quarter 2022 from 1.16 percent for the first quarter of 2022.

The annualized return on average stockholders' equity increased to 10.32 percent during the second quarter of 2022 from 9.91 percent for the first quarter of 2022. The annualized return on average tangible stockholders’ equity increased to 12.39 percent for the second quarter of 2022 from 11.84 percent for the first quarter of 2022.

DIVIDEND DECLARED

The Company’s Board of Directors approved a dividend of $0.130 per share for the quarter ended June 30, 2022. The dividend will be paid on August 26, 2022 to stockholders of record on August 12, 2022.

PCSB ACQUISITION

On May 23, 2022, the Company and PCSB Financial Corporation (“PCSB”), the holding company of PCSB Bank, entered into an Agreement and Plan of Merger (the “Merger Agreement”). Pursuant to the Merger Agreement, PCSB will merge with and into the Company, with the Company as the surviving corporation (the “Merger”). Following the Merger, PCSB Bank will operate as a separate bank subsidiary of the Company. Pursuant to the terms of the Merger Agreement, at the effective time of the Merger, each stockholder of PCSB will receive, for each share of PCSB common stock, at the holder’s election, either $22.00 in cash consideration or 1.3284 shares of Company common stock for each share of PCSB common stock, subject to allocation procedures to ensure that 60% of the outstanding shares of PCSB common stock will be converted into Company common stock. The consummation of the Merger is subject to customary closing conditions, including the receipt of regulatory approvals and approval by PCSB’s stockholders. The Merger is currently expected to be completed in the second half of 2022.

CONFERENCE CALL

The Company will conduct a conference call/webcast at 1:30 PM Eastern Time on Thursday, July 28, 2022 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://event.choruscall.com/mediaframe/webcast.html?webcastid=KE0Krf7D. 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 963142). 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: 139832.

ABOUT BROOKLINE BANCORP, INC.

Brookline Bancorp, Inc., a bank holding company with $8.5 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 regarding the Company’s business, credit quality, financial condition, liquidity and results of operations. Forward-looking statements 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; the Company and PCSB’s ability to achieve the synergies and value creation contemplated by the proposed acquisition; the Company and PCSB’s ability to successfully integrate operations in the proposed acquisition; the effect of the announcement of the proposed acquisition on the ability of PCSB to maintain relationships with its key partners, customers and employees, and on its operating business generally, changes in consumer behavior due to changing political business and economic conditions (including inflation) or legislative or regulatory initiatives; ongoing disruptions due to the COVID-19 pandemic and the measures taken to contain its spread on our employees, customers, business operations, credit quality, financial position, liquidity and results of operations, the possibility that future credit losses may be higher than currently expected; and ongoing 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
	June 30, 2022			March 31, 2022			December 31, 2021				September 30, 2021			June 30, 2021
	(Dollars In Thousands Except per Share Data)
Earnings Data:
Net interest income	$	71,867		$	69,848		$	71,461			$	70,697		$	71,106
Provision (credit) for credit losses		173			(164	)		751				(3,110	)		(3,331	)
Non-interest income		6,928			5,529			10,699				5,586			5,910
Non-interest expense		44,871			42,487			42,909				40,922			37,966
Income before provision for income taxes		33,697			33,050			38,500				38,471			42,381
Net income		25,195			24,705			28,545				28,839			31,602
Performance Ratios:
Net interest margin (1)		3.56	%		3.49	%		3.52	%			3.53	%		3.52	%
Interest-rate spread (1)		3.41	%		3.31	%		3.42	%			3.39	%		3.34	%
Return on average assets (annualized)		1.18	%		1.16	%		1.35	%			1.38	%		1.48	%
Return on average tangible assets (annualized) (non-GAAP)		1.21	%		1.18	%		1.38	%			1.41	%		1.51	%
Return on average stockholders' equity (annualized)		10.32	%		9.91	%		11.56	%			11.79	%		13.21	%
Return on average tangible stockholders' equity (annualized) (non-GAAP)		12.39	%		11.84	%		13.84	%			14.15	%		15.92	%
Efficiency ratio (2)		56.95	%		56.37	%		52.23	%			53.64	%		49.30	%
Per Common Share Data:
Net income — Basic	$	0.33		$	0.32		$	0.37			$	0.37		$	0.40
Net income — Diluted		0.33			0.32			0.37				0.37			0.40
Cash dividends declared		0.130			0.130			0.125				0.125			0.120
Book value per share (end of period)		12.63			12.65			12.82				12.61			12.44
Tangible book value per share (end of period) (non-GAAP)		10.51			10.56			10.73				10.51			10.35
Stock price (end of period)		13.31			15.82			16.19				15.26			14.95
Balance Sheet:
Total assets	$	8,514,230		$	8,633,736		$	8,602,622			$	8,312,649		$	8,461,964
Total loans and leases		7,291,912			7,223,130			7,154,457				6,931,694			7,020,275
Total deposits		6,894,457			7,094,378			7,049,906				6,873,010			6,894,701
Total stockholders’ equity		968,496			981,935			995,342				978,452			972,252
Asset Quality:
Nonperforming assets	$	21,259		$	26,506		$	33,177			$	36,461		$	34,588
Nonperforming assets as a percentage of total assets		0.25	%		0.31	%		0.39	%			0.44	%		0.41	%
Allowance for loan and lease losses	$	93,188		$	95,463		$	99,084			$	102,515		$	106,474
Allowance for loan and lease losses as a percentage of total loans and leases		1.28	%		1.32	%		1.38	%			1.48	%		1.52	%
Net loan and lease charge-offs	$	1,242		$	1,947		$	2,124			$	1,255		$	595
Net loan and lease charge-offs as a percentage of average loans and leases (annualized)		0.07	%		0.11	%		0.12	%			0.07	%		0.03	%
Capital Ratios:
Stockholders’ equity to total assets		11.38	%		11.37	%		11.57	%			11.77	%		11.49	%
Tangible stockholders’ equity to tangible assets (non-GAAP)		9.65	%		9.67	%		9.87	%			10.01	%		9.75	%
(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)
	June 30, 2022			March 31, 2022			December 31, 2021				September 30, 2021			June 30, 2021
ASSETS	(In Thousands Except Share Data)
Cash and due from banks	$	50,429		$	89,032		$	66,265			$	28,865		$	36,079
Short-term investments		39,900			204,239			261,472				210,279			284,370
Total cash and cash equivalents		90,329			293,271			327,737				239,144			320,449
Investment securities available-for-sale		717,818			730,562			720,866				732,020			694,151
Total investment securities		717,818			730,562			720,866				732,020			694,151
Allowance for investment security losses		(58	)		(4	)		-				-			-
Net investment securities		717,760			730,558			720,866				732,020			694,151
Loans and leases:
Commercial real estate loans		4,225,754			4,235,325			4,103,040				3,909,011			3,815,581
Commercial loans and leases		1,860,182			1,800,383			1,887,136				1,869,686			2,038,851
Consumer loans		1,205,976			1,187,422			1,164,281				1,152,997			1,165,843
Total loans and leases		7,291,912			7,223,130			7,154,457				6,931,694			7,020,275
Allowance for loan and lease losses		(93,188	)		(95,463	)		(99,084	)			(102,515	)		(106,474	)
Net loans and leases		7,198,724			7,127,667			7,055,373				6,829,179			6,913,801
Restricted equity securities		35,406			29,066			28,981				28,098			31,627
Premises and equipment, net of accumulated depreciation		69,557			69,365			70,359				70,811			71,240
Right-of-use asset operating leases		18,226			19,571			20,508				21,879			22,682
Deferred tax asset		50,736			46,886			38,987				39,643			41,324
Goodwill		160,427			160,427			160,427				160,427			160,427
Identified intangible assets, net of accumulated amortization		2,022			2,142			2,276				2,484			2,692
Other real estate owned and repossessed assets		507			990			718				601			372
Other assets		170,536			153,793			176,390				188,363			203,199
Total assets	$	8,514,230		$	8,633,736		$	8,602,622			$	8,312,649		$	8,461,964
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand checking accounts	$	1,845,365		$	1,903,331		$	1,888,462			$	1,816,116		$	1,926,713
NOW accounts		628,791			627,904			604,097				513,032			495,598
Savings accounts		894,926			967,183			915,804				823,095			782,482
Money market accounts		2,402,992			2,432,377			2,358,306				2,393,362			2,250,651
Certificate of deposit accounts		1,006,786			1,048,036			1,117,695				1,141,861			1,178,131
Brokered deposit accounts		115,597			115,547			165,542				185,544			261,126
Total deposits		6,894,457			7,094,378			7,049,906				6,873,010			6,894,701
Borrowed funds:
Advances from the FHLBB		307,967			201,236			147,907				113,977			204,154
Subordinated debentures and notes		83,970			83,934			83,897				83,859			83,821
Other borrowed funds		86,263			107,727			125,517				69,703			75,039
Total borrowed funds		478,200			392,897			357,321				267,539			363,014
Operating lease liabilities		18,226			19,571			20,508				21,879			22,682
Mortgagors’ escrow accounts		5,771			5,780			6,296				6,455			6,231
Reserve for unfunded credits		17,511			16,305			14,794				12,736			13,142
Accrued expenses and other liabilities		131,569			122,870			158,455				152,578			189,942
Total liabilities		7,545,734			7,651,801			7,607,280				7,334,197			7,489,712
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		738,544			737,658			736,826				735,990			738,557
Retained earnings, partially restricted		372,677			357,576			342,639				323,862			304,466
Accumulated other comprehensive income		(44,977	)		(29,322	)		(110	)			2,615			6,089
Treasury stock, at cost;
7,995,888, 7,037,464, 7,037,464, 7,034,754, and 6,536,478 shares, respectively		(98,525	)		(84,718	)		(84,718	)			(84,684	)		(77,493	)
Unallocated common stock held by the Employee Stock Ownership Plan;
11,442, 18,051, 24,660, 31,278, and 37,890 shares, respectively		(75	)		(111	)		(147	)			(183	)		(219	)
Total stockholders' equity		968,496			981,935			995,342				978,452			972,252
Total liabilities and stockholders' equity	$	8,514,230		$	8,633,736		$	8,602,622			$	8,312,649		$	8,461,964

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
	Three Months Ended
	June 30, 2022		March 31, 2022			December 31, 2021			September 30, 2021			June 30, 2021
	(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases	$	74,287	$	71,721		$	73,560		$	74,332		$	75,026
Debt securities		3,249		2,996			2,972			2,967			3,121
Marketable and restricted equity securities		337		328			325			313			233
Short-term investments		156		66			88			83			42
Total interest and dividend income		78,029		75,111			76,945			77,695			78,422
Interest expense:
Deposits		4,282		3,771			4,055			4,571			5,380
Borrowed funds		1,880		1,492			1,429			2,427			1,936
Total interest expense		6,162		5,263			5,484			6,998			7,316
Net interest income		71,867		69,848			71,461			70,697			71,106
Provision (credit) for credit losses		173		(164	)		751			(3,110	)		(3,331	)
Provision for investment losses		54		4			-			-			-
Net interest income after provision for credit losses		71,640		70,008			70,710			73,807			74,437
Non-interest income:
Deposit fees		2,744		2,500			2,653			2,629			3,015
Loan fees		666		747			448			487			607
Loan level derivative income, net		1,615		686			3,981			218			7
Loss (gain) on investment securities, net		-		-			(32	)		-			1
Gain on sales of loans and leases held-for-sale		291		344			1,933			557			538
Other		1,612		1,252			1,716			1,695			1,742
Total non-interest income		6,928		5,529			10,699			5,586			5,910
Non-interest expense:
Compensation and employee benefits		28,772		26,884			28,598			27,206			25,161
Occupancy		3,807		4,284			3,558			3,567			3,832
Equipment and data processing		4,931		5,078			4,576			4,556			4,697
Professional services		1,219		1,226			1,151			1,072			1,245
FDIC insurance		739		728			617			662			657
Advertising and marketing		1,319		1,272			880			1,077			1,110
Amortization of identified intangible assets		120		134			208			208			228
Merger and acquisition expense		535		-			-			-			-
Other		3,429		2,881			3,321			2,574			1,036
Total non-interest expense		44,871		42,487			42,909			40,922			37,966
Income before provision for income taxes		33,697		33,050			38,500			38,471			42,381
Provision for income taxes		8,502		8,345			9,955			9,632			10,779
Net income	$	25,195	$	24,705		$	28,545		$	28,839		$	31,602
Earnings per common share:
Basic	$	0.33	$	0.32		$	0.37		$	0.37		$	0.40
Diluted	$	0.33	$	0.32		$	0.37		$	0.37		$	0.40
Weighted average common shares outstanding during the period:
Basic		77,091,013		77,617,227			77,610,608			78,000,261			78,150,364
Diluted		77,419,288		77,926,822			77,864,097			78,240,633			78,470,451
Dividends paid per common share	$	0.130	$	0.125		$	0.125		$	0.120		$	0.120

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
	Six Months Ended June 30,
		2022		2021
	(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases	$	146,008	$	150,035
Debt securities		6,245		6,239
Marketable and restricted equity securities		665		534
Short-term investments		222		81
Total interest and dividend income		153,140		156,889
Interest expense:
Deposits		8,053		12,087
Borrowed funds		3,372		4,587
Total interest expense		11,425		16,674
Net interest income		141,715		140,215
Provision (credit) for credit losses		9		(5,478	)
Provision for investment losses		58		-
Net interest income after provision for credit losses		141,648		145,693
Non-interest income:
Deposit Fees		5,244		5,296
Loan Fees		1,413		1,160
Loan level derivative income, net		2,301		481
(Loss) gain on investment securities, net		-		(6	)
Gain on sales of loans and leases held-for-sale		635		1,247
Other		2,864		2,526
Total non-interest income		12,457		10,704
Non-interest expense:
Compensation and employee benefits		55,656		50,982
Occupancy		8,091		7,836
Equipment and data processing		10,009		9,190
Professional services		2,445		2,471
FDIC insurance		1,467		1,701
Advertising and marketing		2,591		2,210
Amortization of identified intangible assets		254		460
Merger and acquisition expense		535		-
Other		6,310		3,927
Total non-interest expense		87,358		78,777
Income before provision for income taxes		66,747		77,620
Provision for income taxes		16,847		19,564
Net income	$	49,900	$	58,056
Earnings per common share:
Basic	$	0.65	$	0.74
Diluted	$	0.65	$	0.74
Weighted average common shares outstanding during the period:
Basic		77,352,666		78,147,076
Diluted		77,671,601		78,437,275
Dividends paid per common share	$	0.255	$	0.235

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Asset Quality Analysis (Unaudited)
	At and for the Three Months Ended
	June 30, 2022			March 31, 2022			December 31, 2021			September 30, 2021			June 30, 2021
	(Dollars in Thousands)
NONPERFORMING ASSETS:
Loans and leases accounted for on a nonaccrual basis:
Commercial real estate mortgage	$	6,470		$	8,313		$	10,848		$	10,963		$	11,657
Total commercial real estate loans		6,470			8,313			10,848			10,963			11,657
Commercial		892			1,366			2,318			2,539			3,207
Equipment financing		10,183			11,685			15,014			17,655			14,872
Condominium association		71			77			84			91			97
Total commercial loans and leases		11,146			13,128			17,416			20,285			18,176
Residential mortgage		2,412			3,394			3,909			4,150			3,638
Home equity		721			680			285			461			744
Other consumer		3			1			1			1			1
Total consumer loans		3,136			4,075			4,195			4,612			4,383
Total nonaccrual loans and leases		20,752			25,516			32,459			35,860			34,216
Other repossessed assets		507			990			718			601			372
Total nonperforming assets	$	21,259		$	26,506		$	33,177		$	36,461		$	34,588
Loans and leases past due greater than 90 days and still accruing	$	266		$	4		$	1		$	838		$	3,154
Troubled debt restructurings on accrual		11,524			10,858			12,580			13,526			14,387
Troubled debt restructurings on nonaccrual		5,097			5,189			6,709			6,655			6,410
Total troubled debt restructurings	$	16,621		$	16,047		$	19,289		$	20,181		$	20,797
Nonperforming loans and leases as a percentage of total loans and leases		0.28	%		0.35	%		0.45	%		0.52	%		0.49	%
Nonperforming assets as a percentage of total assets		0.25	%		0.31	%		0.39	%		0.44	%		0.41	%
PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:
Allowance for loan and lease losses at beginning of period	$	95,463		$	99,084		$	102,515		$	106,474		$	109,837
Charge-offs		(1,533	)		(2,344	)		(2,562	)		(1,600	)		(1,221	)
Recoveries		291			397			438			345			626
Net charge-offs		(1,242	)		(1,947	)		(2,124	)		(1,255	)		(595	)
(Credit) provision for loan and lease losses excluding unfunded commitments *		(1,033	)		(1,674	)		(1,307	)		(2,704	)		(2,768	)
Allowance for loan and lease losses at end of period	$	93,188		$	95,463		$	99,084		$	102,515		$	106,474
Allowance for loan and lease losses as a percentage of total loans and leases		1.28	%		1.32	%		1.38	%		1.48	%		1.52	%
NET CHARGE-OFFS:
Commercial real estate loans	$	(6	)	$	31		$	-		$	(1	)	$	17
Commercial loans and leases		1,254			1,948			2,143			1,276			695
Consumer loans		(6	)		(32	)		(19	)		(20	)		(117	)
Total net charge-offs	$	1,242		$	1,947		$	2,124		$	1,255		$	595
Net loan and lease charge-offs as a percentage of average loans and leases (annualized)		0.07	%		0.11	%		0.12	%		0.07	%		0.03	%
*Provision for loan and lease losses does not include provision (credit) of $1.2 million, $1.5 million, $2.1 million, $(0.4) million, $(0.6) million, for credit losses on unfunded commitments during the three months ended June 30, 2022, March 31, 2022, December 31, 2021, September 30, 2021 and June 30, 2021, respectively.

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Average Yields / Costs (Unaudited)
	Three Months Ended
	June 30, 2022						March 31, 2022						June 30, 2021
	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)	$	726,374	$	3,249	1.79	%	$	720,263	$	2,996	1.66	%	$	721,029	$	3,121	1.73	%
Marketable and restricted equity securities (2)		30,461		337	4.42	%		27,909		328	4.70	%		34,989		233	2.67	%
Short-term investments		99,905		156	0.62	%		192,475		66	0.14	%		234,317		42	0.07	%
Total investments		856,740		3,742	1.75	%		940,647		3,390	1.44	%		990,335		3,396	1.37	%
Loans and Leases:
Commercial real estate loans (3)		4,220,257		38,967	3.65	%		4,152,414		36,027	3.47	%		3,780,920		34,320	3.59	%
Commercial loans (3)		695,365		7,074	4.03	%		755,809		7,998	4.23	%		1,115,910		13,040	4.62	%
Equipment financing (3)		1,129,606		17,897	6.34	%		1,105,194		18,012	6.52	%		1,074,469		17,963	6.69	%
Residential mortgage loans (3)		818,826		7,123	3.48	%		804,939		6,992	3.47	%		788,296		6,927	3.51	%
Other consumer loans (3)		376,225		3,274	3.48	%		366,534		2,750	3.04	%		368,845		2,833	3.08	%
Total loans and leases		7,240,279		74,335	4.11	%		7,184,890		71,779	4.00	%		7,128,440		75,083	4.21	%
Total interest-earning assets		8,097,019		78,077	3.86	%		8,125,537		75,169	3.70	%		8,118,775		78,479	3.87	%
Non-interest-earning assets		418,311						405,506						421,453
Total assets	$	8,515,330					$	8,531,043					$	8,540,228
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts	$	612,439		216	0.14	%	$	589,891		103	0.07	%	$	499,883		146	0.12	%
Savings accounts		930,957		211	0.09	%		933,173		198	0.09	%		774,406		248	0.13	%
Money market accounts		2,429,043		2,073	0.34	%		2,416,577		1,570	0.26	%		2,247,997		1,497	0.27	%
Certificates of deposit		1,018,471		1,694	0.67	%		1,091,729		1,848	0.69	%		1,226,668		3,102	1.01	%
Brokered deposit accounts		115,535		88	0.30	%		132,751		52	0.16	%		418,166		387	0.37	%
Total interest-bearing deposits		5,106,445		4,282	0.34	%		5,164,121		3,771	0.30	%		5,167,120		5,380	0.42	%
Borrowings
Advances from the FHLBB		183,047		489	1.06	%		103,878		187	0.72	%		250,102		663	1.05	%
Subordinated debentures and notes		83,952		1,262	6.02	%		83,915		1,244	5.93	%		83,802		1,242	5.93	%
Other borrowed funds		106,363		129	0.48	%		130,080		61	0.19	%		74,285		31	0.17	%
Total borrowings		373,362		1,880	1.99	%		317,873		1,492	1.88	%		408,189		1,936	1.88	%
Total interest-bearing liabilities		5,479,807		6,162	0.45	%		5,481,994		5,263	0.39	%		5,575,309		7,316	0.53	%
Non-interest-bearing liabilities:
Demand checking accounts		1,886,284						1,880,039						1,785,023
Other non-interest-bearing liabilities		173,072						171,717						222,689
Total liabilities		7,539,163						7,533,750						7,583,021
Stockholders’ equity		976,167						997,293						957,207
Total liabilities and equity	$	8,515,330					$	8,531,043					$	8,540,228
Net interest income (tax-equivalent basis) /Interest-rate spread (4)				71,915	3.41	%				69,906	3.31	%				71,163	3.34	%
Less adjustment of tax-exempt income				48						58						57
Net interest income			$	71,867					$	69,848					$	71,106
Net interest margin (5)					3.56	%					3.49	%					3.52	%
(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)
	Six Months Ended
	June 30, 2022						June 30, 2021
	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)	$	723,336	$	6,245	1.73	%	$	737,771	$	6,239	1.69	%
Marketable and restricted equity securities (2)		29,192		665	4.55	%		40,302		534	2.65	%
Short-term investments		145,934		222	0.30	%		213,152		81	0.08	%
Total investments		898,462		7,132	1.59	%		991,225		6,854	1.38	%
Loans and Leases:
Commercial real estate loans (3)		4,186,523		74,994	3.56	%		3,783,394		68,565	3.60	%
Commercial loans (3)		725,422		15,072	4.13	%		1,182,498		25,786	4.34	%
Equipment financing (3)		1,117,467		35,909	6.43	%		1,076,741		36,006	6.69	%
Residential mortgage loans (3)		811,921		14,115	3.48	%		784,562		14,159	3.61	%
Other consumer loans (3)		371,407		6,024	3.27	%		372,198		5,628	3.05	%
Total loans and leases		7,212,740		146,114	4.05	%		7,199,393		150,144	4.17	%
Total interest-earning assets		8,111,202		153,246	3.78	%		8,190,618		156,998	3.83	%
Non-interest-earning assets		411,944						436,121
Total assets	$	8,523,146					$	8,626,739
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts	$	601,227		319	0.11	%	$	488,949		276	0.11	%
Savings accounts		932,059		409	0.09	%		743,738		483	0.13	%
Money market accounts		2,422,845		3,643	0.30	%		2,166,702		2,983	0.28	%
Certificates of deposit		1,054,897		3,542	0.68	%		1,277,110		7,256	1.15	%
Brokered deposit accounts		124,096		140	0.23	%		513,963		1,089	0.43	%
Total interest-bearing deposits		5,135,124		8,053	0.32	%		5,190,462		12,087	0.47	%
Borrowings
Advances from the FHLBB		143,681		676	0.94	%		368,661		2,033	1.10	%
Subordinated debentures and notes		83,934		2,506	5.97	%		83,783		2,484	5.93	%
Other borrowed funds		118,156		190	0.32	%		83,288		70	0.17	%
Total borrowings		345,771		3,372	1.94	%		535,732		4,587	1.70	%
Total interest-bearing liabilities		5,480,895		11,425	0.42	%		5,726,194		16,674	0.59	%
Non-interest-bearing liabilities:
Demand checking accounts		1,883,179						1,714,589
Other non-interest-bearing liabilities		172,400						234,082
Total liabilities		7,536,474						7,674,865
Stockholders’ equity		986,672						951,874
Total liabilities and equity	$	8,523,146					$	8,626,739
Net interest income (tax-equivalent basis) /Interest-rate spread (4)				141,821	3.36	%				140,324	3.24	%
Less adjustment of tax-exempt income				106						109
Net interest income			$	141,715					$	140,215
Net interest margin (5)					3.53	%					3.45	%
(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 June 30,						At and for the Six Months Ended June 30,
					2022			2021			2022			2021
Reconciliation Table - Non-GAAP Financial Information										(Dollars in Thousands Except Share Data)
Net income				$	25,195		$	31,602		$	49,900		$	58,056
Less:
Security gains (losses) (after-tax)					-			1			-			(4	)
Add:
Merger and acquisition expenses (after-tax)					400			-			400			-
Operating earnings				$	25,595		$	31,601		$	50,300		$	58,060
Operating earnings per common share:
Basic				$	0.33		$	0.40		$	0.65		$	0.74
Diluted					0.33			0.40			0.65			0.74
Weighted average common shares outstanding during the period:
Basic					77,091,013			78,150,364			77,352,666			78,147,076
Diluted					77,419,288			78,470,451			77,671,601			78,437,275
Return on average assets *					1.18	%		1.48	%		1.17	%		1.35	%
Less:
Security gains (losses) (after-tax) *					-	%		-	%		-	%		-	%
Add:
Merger and acquisition expenses (after-tax) *					0.02	%		-	%		0.01	%		-	%
Operating return on average assets *					1.20	%		1.48	%		1.18	%		1.35	%
Return on average tangible assets *					1.21	%		1.51	%		1.19	%		1.37	%
Less:
Security gains (losses) (after-tax) *					-	%		-	%		-	%		-	%
Add:
Merger and acquisition expenses (after-tax) *					0.02	%		-	%		0.01	%		-	%
Operating return on average tangible assets *					1.23	%		1.51	%		1.20	%		1.37	%
Return on average stockholders' equity *					10.32	%		13.21	%		10.11	%		12.20	%
Less:
Security gains (losses) (after-tax) *					-	%		-	%		-	%		-	%
Add:
Merger and acquisition expenses (after-tax) *					0.16	%		-	%		0.08	%		-	%
Operating return on average stockholders' equity *					10.48	%		13.21	%		10.19	%		12.20	%
Return on average tangible stockholders' equity *					12.39	%		15.92	%		12.11	%		14.73	%
Less:
Security gains (losses) (after-tax) *					-	%		-	%		-	%		-	%
Add:
Merger and acquisition expenses (after-tax) *					0.20	%		-	%		0.10	%		-	%
Operating return on average tangible stockholders' equity *					12.59	%		15.92	%		12.21	%		14.73	%
* Ratios at and for the three and six months ended are annualized.
	At and for the Three Months Ended
	June 30, 2022			March 31, 2022			December 31, 2021			September 30, 2021			June 30, 2021
	(Dollars in Thousands)
Net income, as reported	$	25,195		$	24,705		$	28,545		$	28,839		$	31,602
Average total assets	$	8,515,330		$	8,531,043		$	8,462,231		$	8,360,635		$	8,540,228
Less: Average goodwill and average identified intangible assets, net		162,507			162,632			162,804			163,011			163,224
Average tangible assets	$	8,352,823		$	8,368,411		$	8,299,427		$	8,197,624		$	8,377,004
Return on average tangible assets (annualized)		1.21	%		1.18	%		1.38	%		1.41	%		1.51	%
Average total stockholders’ equity	$	976,167		$	997,293		$	987,522		$	978,371		$	957,207
Less: Average goodwill and average identified intangible assets, net		162,507			162,632			162,804			163,011			163,224
Average tangible stockholders’ equity	$	813,660		$	834,661		$	824,718		$	815,360		$	793,983
Return on average tangible stockholders’ equity (annualized)		12.39	%		11.84	%		13.84	%		14.15	%		15.92	%
Total stockholders’ equity	$	968,496		$	981,935		$	995,342		$	978,452		$	972,252
Less:
Goodwill		160,427			160,427			160,427			160,427			160,427
Identified intangible assets, net		2,022			2,142			2,276			2,484			2,692
Tangible stockholders' equity	$	806,047		$	819,366		$	832,639		$	815,541		$	809,133
Total assets	$	8,514,230		$	8,633,736		$	8,602,622		$	8,312,649		$	8,461,964
Less:
Goodwill		160,427			160,427			160,427			160,427			160,427
Identified intangible assets, net		2,022			2,142			2,276			2,484			2,692
Tangible assets	$	8,351,781		$	8,471,167		$	8,439,919		$	8,149,738		$	8,298,845
Tangible stockholders’ equity to tangible assets		9.65	%		9.67	%		9.87	%		10.01	%		9.75	%
Tangible stockholders' equity	$	806,047		$	819,366		$	832,639		$	815,541		$	809,133
Number of common shares issued		85,177,172			85,177,172			85,177,172			85,177,172			85,177,172
Less:
Treasury shares		7,995,888			7,037,464			7,037,464			7,034,754			6,536,478
Unallocated ESOP shares		11,442			18,051			24,660			31,278			37,890
Unvested restricted shares		497,297			500,098			500,098			502,808			448,105
Number of common shares outstanding		76,672,545			77,621,559			77,614,950			77,608,332			78,154,699
Tangible book value per common share	$	10.51		$	10.56		$	10.73		$	10.51		$	10.35
Allowance for loan and lease losses	$	93,188		$	95,463		$	99,084		$	102,515		$	106,474
Total loans and leases	$	7,291,912		$	7,223,130		$	7,154,457		$	6,931,694		$	7,020,275
Less:
Total PPP loans		1,138			14,013			67,711			160,586			348,411
Total loans and leases excluding PPP loans	$	7,290,774		$	7,209,117		$	7,086,746		$	6,771,108		$	6,671,864
Allowance for loan and lease losses as a percentage of total loans and leases less PPP loans		1.28	%		1.32	%		1.40	%		1.51	%		1.60	%

A PDF accompanying this announcement is available at http://ml.globenewswire.com/Resource/Download/bdd70069-9633-40ce-a60c-0238d99a60db 

FAQ

What were Brookline Bancorp's Q2 2022 earnings results?

Brookline Bancorp reported net income of $25.2 million, or $0.33 per share, in Q2 2022.

How did Brookline Bancorp's assets change in Q2 2022?

Total assets decreased by $119.5 million to $8.51 billion from Q1 2022.

What was the core loan portfolio growth for Brookline Bancorp in Q2 2022?

The core loan portfolio grew by $81.7 million in Q2 2022.

What dividend did Brookline Bancorp declare for Q2 2022?

Brookline Bancorp declared a dividend of $0.130 per share for Q2 2022.

When is the planned merger with PCSB Financial expected to be completed?

The merger with PCSB Financial is expected to be completed in the second half of 2022.