Brookline Bancorp Announces Third Quarter Results

Rhea-AI Summary

Brookline Bancorp (NASDAQ: BRKL) reported a net income of $18.7 million or $0.24 EPS for Q3 2020, a decrease from $19.6 million in Q2 2020 and $22.6 million in Q3 2019. Total assets decreased to $9.0 billion from $9.1 billion in June 2020 but increased significantly from $7.9 billion year-over-year. Total loans were $7.4 billion, down from June but up from last year, primarily due to PPP loans. The company resumed its stock buyback program and declared a $0.115 dividend per share, payable November 27, 2020.

Positive

• Net income of $18.7 million for Q3 2020, demonstrating solid earnings amidst challenging conditions.
• Total loans increased year-over-year by $749.5 million, largely due to PPP loans, indicating strong loan growth.
• Resumption of the stock buyback program, allowing for potential shareholder value enhancement.
• Declared a quarterly dividend of $0.115 per share, reflecting ongoing commitment to returning value to shareholders.

Negative

• Net income decreased from $19.6 million in Q2 2020 and $22.6 million in Q3 2019, indicating a downward trend.
• Total assets decreased by $69.5 million from the previous quarter, reflecting some contraction.
• Non-interest income decreased by $1.3 million compared to the prior quarter, showing potential challenges in revenue diversification.
• Increased non-interest expenses by $1.8 million, primarily due to rising compensation costs.

Net Income of $18.7 million, EPS of $0.24

Announces $0.115 Dividend per Share

Resumes Stock Buyback Program

BOSTON, Oct. 28, 2020 (GLOBE NEWSWIRE) -- Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced net income of $18.7 million, or $0.24 per basic and diluted share, for the third quarter of 2020, compared to $19.6 million, or $0.25 per basic and diluted share, for the second quarter of 2020, and $22.6 million, or $0.28 per basic and diluted share, for the third quarter of 2019.

Paul Perrault, President and Chief Executive Officer of the Company noted, “As we look toward the close of 2020, we are thankful for the resilience of our employees in diligently meeting the needs of our customers throughout this unprecedented year. Today we are pleased to report another solid quarter of earnings and growth which are rooted in the strength of our core business areas. While we continue to monitor the situation with COVID-19, the business lines that are fundamental to our success continue to operate effectively during these challenging times."

BALANCE SHEET

Total assets at September 30, 2020 decreased $69.5 million to $9.0 billion from $9.1 billion at June 30, 2020, and increased $1.1 billion from $7.9 billion at September 30, 2019. At September 30, 2020, total loans and leases were $7.4 billion, representing a decrease of $11.3 million from June 30, 2020, and an increase of $749.5 million from September 30, 2019, primarily driven by loans originated under the Small Business Administration's Paycheck Protection Program ("PPP"). The Company has funded 2,922 PPP loans totaling $581.7 million as of August 8, 2020 when the program closed, of which $568.4 million remains outstanding, net of deferred fees and costs at September 30, 2020.

Total investment securities at September 30, 2020 decreased $72.1 million to $784.4 million, as compared to $856.5 million at June 30, 2020, and increased approximately $217.3 million from $567.1 million at September 30, 2019. Total cash and cash equivalents at September 30, 2020 increased $62.4 million to $317.3 million, as compared to $254.9 million at June 30, 2020, and increased $138.8 million from $178.5 million at September 30, 2019. As of September 30, 2020, total investment securities and total cash and cash equivalents represented 12.2 percent of total assets as compared to 12.3 percent and 9.5 percent as of June 30, 2020 and September 30, 2019, respectively.

Total deposits at September 30, 2020 increased $352.3 million to $6.8 billion from $6.4 billion at June 30, 2020 and increased $1.1 billion from $5.7 billion at September 30, 2019.

Total borrowed funds at September 30, 2020 decreased $401.6 million to $1.0 billion from $1.4 billion at June 30, 2020 and increased $18.6 million from $986.4 million at September 30, 2019.

The ratio of stockholders’ equity to total assets was 10.39 percent at September 30, 2020, as compared to 10.21 percent at June 30, 2020, and 11.83 percent at September 30, 2019. The ratio of tangible stockholders’ equity to tangible assets (non-GAAP) was 8.73 percent at September 30, 2020, as compared to 8.56 percent at June 30, 2020, and 9.94 percent at September 30, 2019. Tangible book value per share (non-GAAP) increased $0.10 from $9.67 at June 30, 2020 to $9.77 at September 30, 2020, compared to $9.63 at September 30, 2019.

On December 4, 2019, the Board of Directors approved a stock repurchase program authorizing management to repurchase up to $10.0 million of the Company’s common stock over a period of twelve months commencing on January 1, 2020 and ending on December 31, 2020. On March 9, 2020, the Board of Directors approved an increase in the repurchase amount of $10.0 million bringing the total authorized amount to $20.0 million. Subsequently, as previously disclosed, the Company suspended the stock repurchase program effective as of March 24, 2020. As of September 30, 2020, the Company has repurchased 848,319 shares at a weighted average price of $12.27. In 2019, 136,065 shares of the Company's common stock were repurchased by the Company.

NET INTEREST INCOME

Net interest income increased $1.6 million to $65.9 million during the third quarter of 2020 from $64.3 million at the quarter ended June 30, 2020. The net interest margin decreased 1 basis point to 3.08 percent for the three months ended September 30, 2020.

NON-INTEREST INCOME

Total non-interest income for the quarter ended September 30, 2020 decreased $1.3 million to $4.9 million from $6.2 million for the quarter ended June 30, 2020. The decrease was primarily driven by decreases of $0.9 million in loan level derivative income, net, $0.5 million in gain on investment securities, net and $0.5 million in other non-interest income, partially offset by increases of $0.3 million in deposit fees and $0.3 million in gain on sales of loans and leases.

PROVISION FOR CREDIT LOSSES

On January 1, 2020, the Company adopted ASU 2016-13 "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", commonly referred to as CECL. 

The Company recorded a provision for credit losses of $4.5 million for the quarter ended September 30, 2020, compared to $5.3 million for the quarter ended June 30, 2020.

Total net charge-offs for the third quarter of 2020 were $5.0 million compared to $1.4 million in the second quarter of 2020. The increase in net charge-offs in the quarter was driven by the charge-off of $4.3 million on a commercial taxi medallion relationship which had a $3.2 million specific reserve previously established. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis increased to 27 basis points for the third quarter of 2020 from 8 basis points for the second quarter of 2020.

While economic conditions and forecasts have generally improved from Q2, there remains significant uncertainty and volatility related to the COVID-19 pandemic and its impact on businesses and households as we enter the fall and winter seasons.

The allowance for loan and lease losses represented 1.62 percent of total loans and leases at September 30, 2020, compared to 1.61 percent at June 30, 2020, and 0.89 percent at September 30, 2019. Excluding PPP loans, the allowance for loan and lease losses represents 1.76 percent coverage at September 30, 2020 compared to 1.75 percent at June 30, 2020.

ASSET QUALITY

The ratio of nonperforming loans and leases to total loans and leases was 0.51 percent at September 30, 2020, a decrease from 0.56 percent at June 30, 2020. Total nonaccrual loans and leases decreased $3.3 million to $38.0 million at September 30, 2020 from $41.3 million at June 30, 2020. The ratio of nonperforming assets to total assets was 0.44 percent at September 30, 2020, a decrease from 0.47 percent at June 30, 2020. Total nonperforming assets decreased $3.4 million to $39.4 million at September 30, 2020 from $42.8 million at June 30, 2020.

From March 1, 2020 through the earlier of December 31, 2020 or 60 days after the termination date of the national emergency declared by the President on March 13, 2020 concerning the COVID-19 outbreak (the “national emergency”), a financial institution may elect to suspend the requirements under accounting principles generally accepted in the U.S. for loan modifications related to the COVID-19 pandemic that would otherwise be categorized as a troubled debt restructured, including impairment accounting. This troubled debt restructuring relief applies for the term of the loan modification that occurs during the applicable period for a loan that was not more than 30 days past due as of December 31, 2019. Financial institutions are required to maintain records of the volume of loans involved in modifications to which troubled debt restructuring relief is applicable. As of September 30, 2020, approximately 77 percent of loans granted an initial loan payment deferral have returned to payment status and 910 credits totaling $280 million or 3.8 percent of total loans outstanding have been modified.

NON-INTEREST EXPENSE

Non-interest expense for the quarter ended September 30, 2020 increased $1.8 million to $40.9 million from $39.1 million for the quarter ended June 30, 2020. The increase was primarily driven by increases of $1.5 million in compensation and employee benefits expense due to lower deferred loan origination costs, $0.5 million in FDIC insurance expense and $0.1 million in equipment and data processing expense, partially offset by a decrease of $0.3 million in other expense.

PROVISION FOR INCOME TAXES

The effective tax rate was 26.2 percent and 23.9 percent for the three and nine months ended September 30, 2020 compared to 24.9 percent for the three months ended June 30, 2020 and 24.9 percent and 24.4 percent for the three and nine months ended September 30, 2019.

RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

The annualized return on average assets decreased to 0.83 percent during the third quarter 2020 from 0.88 percent for the second quarter of 2020.

The annualized return on average stockholders' equity decreased to 7.99 percent during the third quarter of 2020 from 8.45 percent for the second quarter of 2020. The annualized return on average tangible stockholders’ equity decreased to 9.70 percent for the third quarter of 2020 from 10.28 percent for the second quarter of 2020.

DIVIDEND DECLARED

The Company’s Board of Directors approved a dividend of $0.115 per share for the quarter ended September 30, 2020. The dividend will be paid on November 27, 2020 to stockholders of record on November 13, 2020.

STOCK REPURCHASE

As previously disclosed, the Company suspended its stock repurchase program effective as of March 24, 2020 with $9.6 million remaining in the Board authorized program. On October 28, 2020, the Company’s Board of Directors approved resumption of the stock repurchase program to be completed by December 31, 2020.

CONFERENCE CALL

The Company will conduct a conference call/webcast at 1:30 PM Eastern Daylight Time on Thursday, October 29, 2020 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/brkl201029.html. To listen to the call without access to the slides, please dial 877-504-4120 (United States) or 412-902-6650 (international) and ask for the Brookline Bancorp, Inc. call. A recording of the call will be available for one week following the call on the Company’s website under “Investor Relations” or by dialing 877-344-7529 (United States) or 412-317-0088 (internationally) and entering the passcode: 10148701.

ABOUT BROOKLINE BANCORP, INC.

Brookline Bancorp, Inc., a bank holding company with $9.0 billion in assets and branch locations in Massachusetts and Rhode Island, is headquartered in Boston, Massachusetts and operates as the holding company for Brookline Bank and Bank Rhode Island (the "banks"). The Company provides commercial and retail banking services, cash management and investment services to customers throughout Central New England. More information about Brookline Bancorp, Inc. and its banks can be found at the following websites: www.brooklinebank.com and www.bankri.com.

FORWARD-LOOKING STATEMENTS

Certain statements contained in this press release that are not historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements contained in this press release that do not describe historical or current facts are forward-looking statements, including statements regard the potential effects of COVID-19 on the Company’s business, credit quality, financial condition, liquidity and results of operations. Forward-looking statements made with regard to the potential effects of COVID-19 on the 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, the length and extent of the economic contraction as a result of the COVID-19 pandemic; continued deterioration in employment levels, general business and economic conditions on a national basis and in the local markets in which the Company operates; 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 Securities and Exchange Commission ("SEC"). The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.

BASIS OF PRESENTATION

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

NON-GAAP FINANCIAL MEASURES

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

INVESTOR RELATIONS:

Contact:		Carl M. Carlson Brookline Bancorp, Inc. 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, 2020			June 30, 2020				March 31, 2020			December 31, 2019			September 30, 2019
	(Dollars In Thousands Except per Share Data)
Earnings Data:
Net interest income	$	65,938		$	64,288			$	61,712		$	63,931		$	63,236
Provision for credit losses		4,528			5,347				54,114			3,602			871
Non-interest income		4,862			6,235				9,328			7,756			7,929
Non-interest expense		40,947			39,109				40,748			38,815			40,191
Income (loss) before provision for income taxes		25,325			26,067				(23,822	)		29,270			30,103
Net income (loss) attributable to Brookline Bancorp, Inc.		18,679			19,571				(17,276	)		22,183			22,596
Performance Ratios:
Net interest margin (1)		3.08	%		3.09	%			3.31	%		3.43	%		3.45	%
Interest-rate spread (1)		2.85	%		2.75	%			2.91	%		3.05	%		3.06	%
Return on average assets (annualized)		0.83	%		0.88	%			(0.87	)%		1.13	%		1.17	%
Return on average tangible assets (annualized) (non-GAAP)		0.84	%		0.90	%			(0.89	)%		1.15	%		1.19	%
Return on average stockholders' equity (annualized)		7.99	%		8.45	%			(7.30	)%		9.42	%		9.74	%
Return on average tangible stockholders' equity (annualized) (non-GAAP)		9.70	%		10.28	%			(8.84	)%		11.42	%		11.85	%
Efficiency ratio (2)		57.83	%		55.46	%			57.36	%		54.15	%		56.48	%
Per Common Share Data:
Net income (loss) — Basic	$	0.24		$	0.25			$	(0.22	)	$	0.28		$	0.28
Net income (loss) — Diluted		0.24			0.25				(0.22	)		0.28			0.28
Cash dividends declared		0.115			0.115				0.115			0.115			0.115
Book value per share (end of period)		11.84			11.75				11.57			11.87			11.70
Tangible book value per share (end of period) (non-GAAP)		9.77			9.67				9.49			9.80			9.63
Stock price (end of period)		8.65			10.08				11.28			16.46			14.73
Balance Sheet:
Total assets	$	9,000,192		$	9,069,667			$	8,461,591		$	7,856,853		$	7,878,436
Total loans and leases		7,396,358			7,407,697				6,822,527			6,737,816			6,646,821
Total deposits		6,792,523			6,440,233				5,889,938			5,830,072			5,729,339
Brookline Bancorp, Inc. stockholders’ equity		935,558			926,413				912,568			945,606			932,311
Asset Quality:
Nonperforming assets	$	39,365		$	42,754			$	41,122		$	22,092		$	23,760
Nonperforming assets as a percentage of total assets		0.44	%		0.47	%			0.49	%		0.28	%		0.30	%
Allowance for loan and lease losses	$	119,971		$	119,553			$	113,181		$	61,082		$	59,135
Allowance for loan and lease losses as a percentage of total loans and leases		1.62	%		1.61	%			1.66	%		0.91	%		0.89	%
Net loan and lease charge-offs	$	4,963		$	1,383			$	2,234		$	1,622		$	366
Net loan and lease charge-offs as a percentage of average loans and leases (annualized)		0.27	%		0.08	%			0.13	%		0.10	%		0.02	%
Capital Ratios:
Stockholders’ equity to total assets		10.39	%		10.21	%			10.78	%		12.04	%		11.83	%
Tangible stockholders’ equity to tangible assets (non-GAAP)		8.73	%		8.56	%			9.02	%		10.15	%		9.94	%
(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, 2020			June 30, 2020				March 31, 2020				December 31, 2019			September 30, 2019
ASSETS	(In Thousands Except Share Data)
Cash and due from banks	$	33,818		$	38,522			$	86,996			$	33,589		$	93,841
Short-term investments		283,515			216,394				253,772				44,201			84,689
Total cash and cash equivalents		317,333			254,916				340,768				77,790			178,530
Investment securities available-for-sale		783,867			854,505				761,539				498,995			467,339
Investment securities held-to-maturity		-			-				-				86,780			95,163
Equity securities held-for-trading		525			1,992				2,558				3,581			4,581
Total investment securities		784,392			856,497				764,097				589,356			567,083
Loans and leases held-for-sale		-			-				-				-			-
Loans and leases:
Commercial real estate loans		3,835,372			3,837,703				3,762,158				3,669,222			3,589,451
Commercial loans and leases		2,354,613			2,361,463				1,826,866				1,838,748			1,850,388
Consumer loans		1,206,373			1,208,531				1,233,503				1,229,846			1,206,982
Total loans and leases		7,396,358			7,407,697				6,822,527				6,737,816			6,646,821
Allowance for loan and lease losses		(119,971	)		(119,553	)			(113,181	)			(61,082	)		(59,135	)
Net loans and leases		7,276,387			7,288,144				6,709,346				6,676,734			6,587,686
Restricted equity securities		61,715			71,638				68,472				53,818			57,896
Premises and equipment, net of accumulated depreciation		72,441			73,127				73,786				74,350			75,229
Right-of-use asset operating leases		23,492			24,343				24,789				24,876			26,216
Deferred tax asset		42,269			42,683				38,141				25,017			25,204
Goodwill		160,427			160,427				160,427				160,427			160,427
Identified intangible assets, net of accumulated amortization		3,464			3,775				4,087				4,423			4,843
Other real estate owned and repossessed assets		1,413			1,454				2,038				2,631			2,132
Other assets		256,859			292,663				275,640				167,431			193,190
Total assets	$	9,000,192		$	9,069,667			$	8,461,591			$	7,856,853		$	7,878,436
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand checking accounts	$	1,550,267		$	1,603,037			$	1,175,329			$	1,141,578		$	1,106,684
NOW accounts		459,902			417,622				361,854				371,380			340,321
Savings accounts		716,630			657,758				653,026				613,467			604,481
Money market accounts		1,878,258			1,809,868				1,676,092				1,682,005			1,666,231
Certificate of deposit accounts		1,492,913			1,601,768				1,669,509				1,671,738			1,673,382
Brokered deposit accounts		694,553			350,180				354,128				349,904			338,240
Total deposits		6,792,523			6,440,233				5,889,938				5,830,072			5,729,339
Borrowed funds:
Advances from the FHLBB		841,169			1,267,570				1,137,431				758,469			854,481
Subordinated debentures and notes		83,707			83,668				83,630				83,591			83,551
Other borrowed funds		80,169			55,431				70,743				60,689			48,373
Total borrowed funds		1,005,045			1,406,669				1,291,804				902,749			986,405
Operating lease liabilities		23,492			24,343				24,789				24,876			26,216
Mortgagors’ escrow accounts		6,429			6,467				7,441				7,232			7,072
Reserve for unfunded credits		13,964			14,816				17,222				1,880			1,847
Accrued expenses and other liabilities		223,181			250,726				317,829				144,438			195,246
Total liabilities		8,064,634			8,143,254				7,549,023				6,911,247			6,946,125
Stockholders' equity:
Brookline Bancorp, Inc. 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		736,294			738,155				737,422				736,601			735,928
Retained earnings, partially restricted		247,336			237,808				227,359				265,376			252,435
Accumulated other comprehensive income		18,782			19,538				16,947				2,283			2,775
Treasury stock, at cost;
5,629,854, 5,859,708, 5,862,811, 5,003,127, and 5,003,127 shares, respectively		(67,376	)		(69,572	)			(69,617	)			(59,073	)		(59,176	)
Unallocated common stock held by the Employee Stock Ownership Plan;
58,227, 65,334, 72,441, 79,548, and 92,337 shares, respectively		(330	)		(368	)			(395	)			(433	)		(503	)
Total stockholders' equity		935,558			926,413				912,568				945,606			932,311
Total liabilities and stockholders' equity	$	9,000,192		$	9,069,667			$	8,461,591			$	7,856,853		$	7,878,436

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
	Three Months Ended
	September 30, 2020			June 30, 2020		March 31, 2020			December 31, 2019		September 30, 2019
	(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases	$	76,240		$	77,416	$	79,559		$	83,309	$	83,566
Debt securities		3,746			3,701		2,976			2,910		2,977
Marketable and restricted equity securities		672			908		778			813		876
Short-term investments		46			99		209			418		487
Total interest and dividend income		80,704			82,124		83,522			87,450		87,906
Interest expense:
Deposits		10,583			12,778		16,240			17,655		18,300
Borrowed funds		4,183			5,058		5,570			5,864		6,370
Total interest expense		14,766			17,836		21,810			23,519		24,670
Net interest income		65,938			64,288		61,712			63,931		63,236
Provision for credit losses		4,528			5,347		54,114			3,602		871
Net interest income after provision for credit losses		61,410			58,941		7,598			60,329		62,365
Non-interest income:
Deposit fees		2,305			1,929		2,458			2,710		2,710
Loan fees		397			513		550			567		719
Loan level derivative income, net		527			1,440		2,156			2,494		2,251
Gain (loss) on investment securities, net		54			586		1,330			133		(116	)
Gain on sales of loans and leases held-for-sale		632			299		120			309		550
Other		947			1,468		2,714			1,543		1,815
Total non-interest income		4,862			6,235		9,328			7,756		7,929
Non-interest expense:
Compensation and employee benefits		26,092			24,619		25,219			23,987		24,871
Occupancy		3,802			3,825		3,953			4,102		3,895
Equipment and data processing		4,293			4,155		4,703			4,601		4,749
Professional services		1,112			1,056		1,651			1,120		1,083
FDIC insurance		1,363			858		378			53		54
Advertising and marketing		1,024			1,017		1,075			828		1,035
Amortization of identified intangible assets		312			311		336			420		421
Merger and restructuring expense		-			-		-			-		1,125
Other		2,949			3,268		3,433			3,704		2,958
Total non-interest expense		40,947			39,109		40,748			38,815		40,191
Income (loss) before provision for income taxes		25,325			26,067		(23,822	)		29,270		30,103
Provision (benefit) for income taxes		6,646			6,496		(6,546	)		7,087		7,507
Net income (loss) attributable to Brookline Bancorp, Inc.	$	18,679		$	19,571	$	(17,276	)	$	22,183	$	22,596
Earnings per common share:
Basic	$	0.24		$	0.25	$	(0.22	)	$	0.28	$	0.28
Diluted	$	0.24		$	0.25	$	(0.22	)	$	0.28	$	0.28
Weighted average common shares outstanding during the period:
Basic		78,948,139			78,849,282		79,481,462			79,682,724		79,700,403
Diluted		79,055,901			79,015,274		79,665,774			79,845,447		79,883,510
Dividends paid per common share	$	0.115		$	0.115	$	0.115		$	0.115	$	0.110

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
	Nine Months Ended September 30,
	2020		2019
	(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases	$	233,215	$	247,036
Debt securities		10,423		9,371
Marketable and restricted equity securities		2,358		2,664
Short-term investments		354		1,105
Total interest and dividend income		246,350		260,176
Interest expense:
Deposits		39,601		51,960
Borrowed funds		14,811		18,847
Total interest expense		54,412		70,807
Net interest income		191,938		189,369
Provision for credit losses		63,989		5,981
Net interest income after provision for credit losses		127,949		183,388
Non-interest income:
Deposit Fees		6,692		7,913
Loan Fees		1,460		1,530
Loan level derivative income, net		4,123		5,768
Gain on investment securities, net		1,970		375
Gain on sales of loans and leases held-for-sale		1,051		1,400
Other		5,129		5,051
Total non-interest income		20,425		22,037
Non-interest expense:
Compensation and employee benefits		75,931		72,567
Occupancy		11,580		11,594
Equipment and data processing		13,152		14,051
Professional services		3,819		3,246
FDIC insurance		2,599		1,392
Advertising and marketing		3,116		3,216
Amortization of identified intangible assets		959		1,243
Merger and restructuring expense		-		1,125
Other		9,650		10,232
Total non-interest expense		120,806		118,666
Income before provision for income taxes		27,568		86,759
Provision for income taxes		6,596		21,182
Net income before noncontrolling interest in subsidiary		20,972		65,577
Less net income attributable to noncontrolling interest in subsidiary		-		43
Net income attributable to Brookline Bancorp, Inc.	$	20,972	$	65,534
Earnings per common share:
Basic	$	0.27	$	0.82
Diluted	$	0.27	$	0.82
Weighted average common shares outstanding during the period:
Basic		79,092,424		79,676,456
Diluted		79,245,113		79,867,683
Dividends paid per common share	$	0.345	$	0.325

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Asset Quality Analysis (Unaudited)
	At and for the Three Months Ended
	September 30, 2020			June 30, 2020			March 31, 2020			December 31, 2019			September 30, 2019
	(Dollars in Thousands)
NONPERFORMING ASSETS:
Loans and leases accounted for on a nonaccrual basis:
Commercial real estate mortgage	$	10,841		$	10,139		$	10,937		$	2,845		$	2,910
Multi-family mortgage		-			-			85			84			87
Total commercial real estate loans		10,841			10,139			11,022			2,929			2,997
Commercial		7,751			12,427			12,991			4,909			3,139
Equipment financing		13,372			13,100			10,356			9,822			12,817
Condominium association		117			190			203			151			163
Total commercial loans and leases		21,240			25,717			23,550			14,882			16,119
Residential mortgage		4,634			4,157			3,446			753			1,605
Home equity		1,235			1,278			1,059			896			904
Other consumer		2			9			7			1			3
Total consumer loans		5,871			5,444			4,512			1,650			2,512
Total nonaccrual loans and leases		37,952			41,300			39,084			19,461			21,628
Other real estate owned		-			-			-			-			201
Other repossessed assets		1,413			1,454			2,038			2,631			1,931
Total nonperforming assets	$	39,365		$	42,754		$	41,122		$	22,092		$	23,760
Loans and leases past due greater than 90 days and still accruing	$	1,180		$	1,974		$	1,045		$	10,109		$	11,885
Troubled debt restructurings on accrual		11,309			10,172			16,480			17,076			22,233
Troubled debt restructurings on nonaccrual		5,742			5,972			5,819			6,104			5,763
Total troubled debt restructurings	$	17,051		$	16,144		$	22,299		$	23,180		$	27,996
Nonperforming loans and leases as a percentage of total loans and leases		0.51	%		0.56	%		0.57	%		0.29	%		0.33	%
Nonperforming assets as a percentage of total assets		0.44	%		0.47	%		0.49	%		0.28	%		0.30	%
PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:
Allowance for loan and lease losses at beginning of period	$	119,553		$	113,181		$	61,082		$	59,135		$	58,635
CECL adjustment to retained earnings		-			-			6,632			-			-
Charge-offs		(5,511	)		(1,803	)		(2,539	)		(1,894	)		(1,190	)
Recoveries		548			420			305			272			824
Net charge-offs		(4,963	)		(1,383	)		(2,234	)		(1,622	)		(366	)
Provision for loan and lease losses excluding unfunded commitments *		5,381			7,755			47,701			3,569			866
Allowance for loan and lease losses at end of period	$	119,971		$	119,553		$	113,181		$	61,082		$	59,135
Allowance for loan and lease losses as a percentage of total loans and leases		1.62	%		1.61	%		1.66	%		0.91	%		0.89	%
NET CHARGE-OFFS:
Commercial real estate loans	$	70		$	(94	)	$	-		$	-		$	-
Commercial loans and leases		4,917			1,498			2,280			1,589			403
Consumer loans		(24	)		(21	)		(46	)		33			(37	)
Total net charge-offs	$	4,963		$	1,383		$	2,234		$	1,622		$	366
Net loan and lease charge-offs as a percentage of average loans and leases (annualized)		0.27	%		0.08	%		0.13	%		0.10	%		0.02	%
*provision for loan and lease losses does not include (credit) provision of $(0.9) million, $2.4 million and $6.4 million for credit losses on unfunded commitments during the three months ended September 30, 2020, June 30, 2020 and March 31, 2020, respectively.

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Average Yields / Costs (Unaudited)
	Three Months Ended
	September 30, 2020						June 30, 2020						September 30, 2019
	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)	$	851,608	$	3,746	1.76	%	$	773,523	$	3,719	1.92	%	$	573,389	$	3,027	2.11	%
Marketable and restricted equity securities (2)		66,154		670	4.06	%		71,058		915	5.15	%		59,638		885	5.94	%
Short-term investments		192,446		46	0.10	%		245,577		99	0.16	%		70,707		487	2.76	%
Total investments		1,110,208		4,462	1.61	%		1,090,158		4,733	1.74	%		703,734		4,399	2.50	%
Loans and Leases:
Commercial real estate loans (3)		3,831,826		35,615	3.64	%		3,761,667		36,829	3.87	%		3,539,485		41,724	4.61	%
Commercial loans (3)		1,281,202		10,677	3.27	%		1,234,537		10,450	3.35	%		838,092		10,291	4.81	%
Equipment financing (3)		1,089,058		19,018	6.99	%		1,069,192		18,973	7.10	%		1,019,179		18,519	7.27	%
Residential mortgage loans (3)		814,559		7,860	3.86	%		814,431		8,068	3.96	%		776,482		8,215	4.23	%
Other consumer loans (3)		395,990		3,127	3.13	%		411,326		3,153	3.07	%		415,082		4,917	4.69	%
Total loans and leases		7,412,635		76,297	4.12	%		7,291,153		77,473	4.25	%		6,588,320		83,666	5.08	%
Total interest-earning assets		8,522,843		80,759	3.79	%		8,381,311		82,206	3.92	%		7,292,054		88,065	4.83	%
Non-interest-earning assets		495,829						488,229						454,438
Total assets	$	9,018,672					$	8,869,540					$	7,746,492
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts	$	427,009		128	0.12	%	$	395,158		114	0.12	%	$	335,091		129	0.15	%
Savings accounts		688,223		258	0.15	%		663,782		357	0.22	%		600,609		820	0.54	%
Money market accounts		1,855,803		1,658	0.36	%		1,784,343		2,074	0.47	%		1,683,548		5,413	1.28	%
Certificates of deposit		1,536,969		7,022	1.82	%		1,637,486		8,364	2.05	%		1,658,650		9,691	2.32	%
Brokered deposit accounts		562,112		1,517	1.07	%		381,709		1,869	1.97	%		342,291		2,247	2.60	%
Total interest-bearing deposits		5,070,116		10,583	0.83	%		4,862,478		12,778	1.06	%		4,620,189		18,300	1.57	%
Borrowings
Advances from the FHLBB		944,865		2,876	1.19	%		1,102,079		3,751	1.35	%		759,738		4,859	2.50	%
Subordinated debentures and notes		83,687		1,246	5.96	%		83,647		1,263	6.04	%		83,530		1,300	6.22	%
Other borrowed funds		118,969		61	0.21	%		70,795		44	0.25	%		79,620		211	1.05	%
Total borrowings		1,147,521		4,183	1.43	%		1,256,521		5,058	1.59	%		922,888		6,370	2.70	%
Total interest-bearing liabilities		6,217,637		14,766	0.94	%		6,118,999		17,836	1.17	%		5,543,077		24,670	1.77	%
Non-interest-bearing liabilities:
Demand checking accounts		1,569,411						1,512,089						1,096,788
Other non-interest-bearing liabilities		296,992						312,213						178,564
Total liabilities		8,084,040						7,943,301						6,818,429
Stockholders’ equity		934,632						926,239						928,063
Total liabilities and equity	$	9,018,672					$	8,869,540					$	7,746,492
Net interest income (tax-equivalent basis) /Interest-rate spread (4)				65,993	2.85	%				64,370	2.75	%				63,395	3.06	%
Less adjustment of tax-exempt income				55						82						159
Net interest income			$	65,938					$	64,288					$	63,236
Net interest margin (5)					3.08	%					3.09	%					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
Average Yields / Costs (Unaudited)
	Nine Months Ended
	September 30, 2020						September 30, 2019
	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)	$	744,065	$	10,489	1.88	%	$	591,535	$	9,526	2.15	%
Marketable and restricted equity securities (2)		65,367		2,371	4.84	%		59,747		2,693	6.01	%
Short-term investments		174,177		354	0.27	%		49,833		1,105	2.96	%
Total investments		983,609		13,214	1.79	%		701,115		13,324	2.53	%
Loans and Leases:
Commercial real estate loans (3)		3,763,750		112,912	3.94	%		3,454,996		123,106	4.70	%
Commercial loans (3)		1,100,346		29,455	3.52	%		814,392		29,773	4.82	%
Equipment financing (3)		1,070,433		56,937	7.09	%		1,004,363		54,795	7.27	%
Residential mortgage loans (3)		813,196		23,862	3.91	%		776,440		24,524	4.21	%
Other consumer loans (3)		408,332		10,235	3.33	%		413,645		15,155	4.89	%
Total loans and leases		7,156,057		233,401	4.35	%		6,463,836		247,353	5.10	%
Total interest-earning assets		8,139,666		246,615	4.04	%		7,164,951		260,677	4.85	%
Non-interest-earning assets		479,809						420,287
Total assets	$	8,619,475					$	7,585,238
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts	$	394,057		358	0.12	%	$	337,671		321	0.13	%
Savings accounts		659,754		1,258	0.25	%		609,284		2,154	0.47	%
Money market accounts		1,773,234		7,973	0.60	%		1,681,594		16,259	1.29	%
Certificates of deposit		1,618,818		24,637	2.03	%		1,587,646		26,601	2.24	%
Brokered deposit accounts		434,409		5,375	1.65	%		344,979		6,625	2.57	%
Total interest-bearing deposits		4,880,272		39,601	1.08	%		4,561,174		51,960	1.52	%
Borrowings
Advances from the FHLBB		939,821		10,724	1.50	%		758,992		14,294	2.48	%
Subordinated debentures and notes		83,648		3,793	6.05	%		83,491		3,913	6.25	%
Other borrowed funds		93,698		294	0.42	%		84,477		640	1.01	%
Total borrowings		1,117,167		14,811	1.74	%		926,960		18,847	2.68	%
Total interest-bearing liabilities		5,997,439		54,412	1.21	%		5,488,134		70,807	1.72	%
Non-interest-bearing liabilities:
Demand checking accounts		1,405,871						1,046,683
Other non-interest-bearing liabilities		280,499						141,305
Total liabilities		7,683,809						6,676,122
Brookline Bancorp, Inc. stockholders’ equity		935,666						908,994
Noncontrolling interest in subsidiary		-						122
Total liabilities and equity	$	8,619,475					$	7,585,238
Net interest income (tax-equivalent basis) /Interest-rate spread (4)				192,203	2.83	%				189,870	3.13	%
Less adjustment of tax-exempt income				265						501
Net interest income			$	191,938					$	189,369
Net interest margin (5)					3.15	%					3.54	%
(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)
					Three Months Ended September 30,						Nine Months Ended September 30,
					2020			2019			2020			2019
Reconciliation Table - Non-GAAP Financial Information					(Dollars in Thousands Except Share Data)
Net income attributable to Brookline Bancorp, Inc.					$	18,679		$	22,596		$	20,972		$	65,534
Less:
Security gains (losses) (after-tax)						40			(87	)		1,499			284
Add:
Merger and restructuring-related expenses (after-tax)						-			845			-			851
Operating earnings					$	18,639		$	23,528		$	19,473		$	66,101
Operating earnings per common share:
Basic					$	0.24		$	0.30		$	0.25		$	0.83
Diluted						0.24			0.29			0.25			0.83
Weighted average common shares outstanding during the period:
Basic						78,948,139			79,700,403			79,092,424			79,676,456
Diluted						79,055,901			79,883,510			79,245,113			79,867,683
Return on average assets *						0.83	%		1.17	%		0.32	%		1.15	%
Less:
Security gains (losses) (after-tax) *						-	%		-	%		0.02	%		-	%
Add:
Merger and restructuring-related expenses (after-tax) *						-	%		0.04	%		-	%		0.01	%
Operating return on average assets *						0.83	%		1.21	%		0.30	%		1.16	%
Return on average tangible assets *						0.84	%		1.19	%		0.33	%		1.18	%
Less:
Security gains (losses) (after-tax) *						-	%		-	%		0.02	%		0.01	%
Add:
Merger and restructuring-related expenses (after-tax) *						-	%		0.05	%		-	%		0.02	%
Operating return on average tangible assets *						0.84	%		1.24	%		0.31	%		1.19	%
Return on average stockholders' equity *						7.99	%		9.74	%		2.99	%		9.61	%
Less:
Security gains (losses) (after-tax) *						0.01	%		(0.04	)%		0.22	%		0.04	%
Add:
Merger and restructuring-related expenses (after-tax) *						-	%		0.36	%		-	%		0.13	%
Operating return on average stockholders' equity *						7.98	%		10.14	%		2.77	%		9.70	%
Return on average tangible stockholders' equity *						9.70	%		11.85	%		3.63	%		11.76	%
Less:
Security gains (losses) (after-tax) *						0.02	%		(0.05	)%		0.26	%		0.05	%
Add:
Merger and restructuring-related expenses (after-tax) *						-	%		0.44	%		-	%		0.15	%
Operating return on average tangible stockholders' equity *						9.68	%		12.34	%		3.37	%		11.86	%
* Ratios at and for the three and nine months ended are annualized.
	At and for the Three Months Ended
	September 30, 2020				June 30, 2020			March 31, 2020			December 31, 2019			September 30, 2019
	(Dollars in Thousands)
Net income (loss), as reported	$	18,679			$	19,571		$	(17,276	)	$	22,183		$	22,596
Average total assets	$	9,018,672			$	8,869,540		$	7,965,826		$	7,860,593		$	7,746,492
Less: Average goodwill and average identified intangible assets, net		164,072				164,385			164,701			165,071			165,493
Average tangible assets	$	8,854,600			$	8,705,155		$	7,801,125		$	7,695,522		$	7,580,999
Return on average tangible assets (annualized)		0.84	%			0.90	%		(0.89	)%		1.15	%		1.19	%
Average total stockholders’ equity	$	934,632			$	926,239		$	946,138		$	941,891		$	928,063
Less: Average goodwill and average identified intangible assets, net		164,072				164,385			164,701			165,071			165,493
Average tangible stockholders’ equity	$	770,560			$	761,854		$	781,437		$	776,820		$	762,570
Return on average tangible stockholders’ equity (annualized)		9.70	%			10.28	%		(8.84	)%		11.42	%		11.85	%
Brookline Bancorp, Inc. stockholders’ equity	$	935,558			$	926,413		$	912,568		$	945,606		$	932,311
Less:
Goodwill		160,427				160,427			160,427			160,427			160,427
Identified intangible assets, net		3,464				3,775			4,087			4,423			4,843
Tangible stockholders' equity	$	771,667			$	762,211		$	748,054		$	780,756		$	767,041
Total assets	$	9,000,192			$	9,069,667		$	8,461,591		$	7,856,853		$	7,878,436
Less:
Goodwill		160,427				160,427			160,427			160,427			160,427
Identified intangible assets, net		3,464				3,775			4,087			4,423			4,843
Tangible assets	$	8,836,301			$	8,905,465		$	8,297,077		$	7,692,003		$	7,713,166
Tangible stockholders’ equity to tangible assets		8.73	%			8.56	%		9.02	%		10.15	%		9.94	%
Tangible stockholders' equity	$	771,667			$	762,211		$	748,054		$	780,756		$	767,041
Number of common shares issued		85,177,172				85,177,172			85,177,172			85,177,172			85,177,172
Less:
Treasury shares		5,629,854				5,859,708			5,862,811			5,003,127			5,003,127
Unallocated ESOP shares		58,227				65,334			72,441			79,548			92,337
Unvested restricted shares		487,318				398,188			395,085			406,450			407,784
Number of common shares outstanding		79,001,773				78,853,942			78,846,835			79,688,047			79,673,924
Tangible book value per common share	$	9.77			$	9.67		$	9.49		$	9.80		$	9.63
Allowance for loan and lease losses	$	119,971			$	119,553		$	113,181		$	61,082		$	59,135
Total loans and leases	$	7,396,358			$	7,407,697		$	6,822,527		$	6,737,816		$	6,646,821
Less:
Total PPP loans		568,383				565,768			-			-			-
Total loans and leases excluding PPP loans	$	6,827,975			$	6,841,929		$	6,822,527		$	6,737,816		$	6,646,821
Allowance for loan and lease losses as a percentage of total loans and leases less PPP loans		1.76	%			1.75	%		1.66	%		0.91	%		0.89	%

PDF available: http://ml.globenewswire.com/Resource/Download/cec3855d-edf6-4322-8fe8-04fde8fa0b4f

FAQ

What were Brookline Bancorp's earnings for Q3 2020?

Brookline Bancorp reported net income of $18.7 million, or $0.24 per share for Q3 2020.

How much did Brookline Bancorp declare as dividends for Q3 2020?

The Board of Directors declared a dividend of $0.115 per share for the quarter ended September 30, 2020.

What is the stock buyback program status for Brookline Bancorp?

Brookline Bancorp announced the resumption of its stock buyback program effective October 28, 2020.

How did Brookline Bancorp's total loans change in Q3 2020?

Total loans decreased by $11.3 million from the previous quarter but increased by $749.5 million year-over-year.

What was the net interest income for Brookline Bancorp in Q3 2020?

Net interest income increased by $1.6 million to $65.9 million during the third quarter of 2020.