 Net Income of 19.6 million, EPS of 0.25 Announces 0.115 Dividend per ShareBOSTON, July 22, 2020 GLOBE NEWSWIRE -- Brookline Bancorp, Inc. NASDAQ: BRKL the Company today announced net income of 19.6 million, or 0.25 per basic and diluted share, for the second quarter of 2020, compared to net loss of 17.3 million, or 0.22 per basic and diluted share, for the first quarter of 2020, and net income of 20.5 million, or 0.26 per basic and diluted share, for the second quarter of 2019.Paul Perrault, President and Chief Executive Officer of the Company noted, The continued strength of our Companys core operations is reflected in this quarters earnings. While we remain vigilant as we look to the future, the business lines that are fundamental to our success continue to operate effectively in these challenging times.BALANCE SHEETTotal assets at June 30, 2020 increased 608.1 million to 9.1 billion from 8.5 billion at March 31, 2020, and increased 1.4 billion from 7.6 billion at June 30, 2019. At June 30, 2020, total loans and leases were 7.4 billion, representing an increase of 585.2 million from March 31, 2020, and an increase of 902.4 million from June 30, 2019, primarily driven by loans originated under the Small Business Administrations Paycheck Protection Program PPP. The Company funded 565.8 million of PPP loans in the second quarter of 2020.Total investment securities at June 30, 2020 increased 92.4 million to 856.5 million, as compared to 764.1 million at March 31, 2020, and increased approximately 265.7 million from 590.8 million at June 30, 2019. Total cash and cash equivalents at June 30, 2020 decreased 85.9 million to 254.9 million, as compared to 340.8 million at March 31, 2020, and increased 162.1 million from 92.8 million at June 30, 2019. As of June 30, 2020, total investment securities and total cash and cash equivalents represented 12.3 percent of total assets as compared to 13.1 percent and 9.0 percent as of March 31, 2020 and June 30, 2019, respectively.Total deposits at June 30, 2020 increased 550.3 million to 6.4 billion from 5.9 billion at March 31, 2020 and increased 817.7 million from 5.6 billion at June 30, 2019.Total borrowed funds at June 30, 2020 increased 114.9 million to 1.4 billion from 1.3 billion at March 31, 2020 and increased 475.9 million from 930.8 million at June 30, 2019.The ratio of stockholders equity to total assets was 10.21 percent at June 30, 2020, as compared to 10.78 percent at March 31, 2020, and 12.03 percent at June 30, 2019. The ratio of tangible stockholders equity to tangible assets was 8.56 percent at June 30, 2020, as compared to 9.02 percent at March 31, 2020, and 10.08 percent at June 30, 2019. Tangible book value per share increased 0.18 from 9.49 at March 31, 2020 to 9.67 at June 30, 2020, compared to 9.45 at June 30, 2019.NET INTEREST INCOMENet interest income increased 2.6 million to 64.3 million during the second quarter of 2020 from 61.7 million at the quarter ended March 31, 2020. The net interest margin decreased 22 basis points to 3.09 percent for the three months ended June 30, 2020.NON-INTEREST INCOMETotal non-interest income for the quarter ended June 30, 2020 decreased 3.1 million to 6.2 million from 9.3 million for the quarter ended March 31, 2020. The decrease was primarily driven by decreases of 0.5 million in deposit fees, 0.7 million in loan level derivative income, net, 0.7 million in gain on investment securities, net and 1.2 million in other non-interest income.PROVISION FOR CREDIT LOSSESOn January 1, 2020, the Company adopted ASU 2016-13 Financial Instruments-Credit Losses Topic 326: Measurement of Credit Losses on Financial Instruments, commonly referred to as CECL. The Company recorded a provision for credit losses of 5.3 million for the quarter ended June 30, 2020, compared to 54.1 million for the quarter ended March 31, 2020. Asset quality was consistent during the second quarter and the increase in provision was primarily driven by the forecasted economic effect of the COVID-19 pandemic.Total net charge-offs for the second quarter of 2020 were 1.4 million compared to 2.2 million in the first quarter of 2020. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis decreased to 8 basis points for the second quarter of 2020 from 13 basis points for the first quarter of 2020.The allowance for loan and lease losses represented 1.61 percent of total loans and leases at June 30, 2020, compared to 1.66 percent at March 31, 2020, and 0.90 percent at June 30, 2019. Excluding PPP loans, the allowance for loan losses and lease losses represents 1.75 percent coverage at June 30, 2020 compared to 1.66 percent at March 31, 2020.NON-INTEREST EXPENSENon-interest expense for the quarter ended June 30, 2020 decreased 1.6 million to 39.1 million from 40.7 million for the quarter ended March 31, 2020. The decrease was primarily driven by decreases of 0.6 million in compensation and employee benefits expense, 0.5 million in equipment and data processing expense, and 0.5 million in professional services expense.PROVISION FOR INCOME TAXESThe effective tax rate was 24.9 percent and a negative 2.2 percent for the three and six months ended June 30, 2020 compared to 27.5 percent for the three months ended March 31, 2020 and 24.9 percent and 24.1 percent for the three and six months ended June 30, 2019.RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITYThe annualized return on average assets increased to 0.88 percent during the second quarter 2020 from a negative 0.87 percent for the first quarter of 2020.The annualized return on average stockholders equity increased to 8.45 percent during the second quarter of 2020 from a negative 7.30 percent for the first quarter of 2020. The annualized return on average tangible stockholders equity increased to 10.28 percent for the second quarter of 2020 from a negative 8.84 percent for the first quarter of 2020.ASSET QUALITYThe ratio of nonperforming loans and leases to total loans and leases was 0.56 percent at June 30, 2020, a decrease from 0.57 percent at March 31, 2020. Nonperforming loans and leases increased 2.2 million to 41.3 million at June 30, 2020 from 39.1 million at March 31, 2020. The ratio of nonperforming assets to total assets was 0.47 percent at June 30, 2020, a decrease from 0.49 percent at March 31, 2020. Nonperforming assets increased 1.6 million to 42.8 million at June 30, 2020 from 41.1 million at March 31, 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 June 30, 2020, the banks have granted 5,366 short-term deferments on loan balances of 1.2 billion, which represented 16 percent of total loan balances.DIVIDEND DECLAREDThe Companys Board of Directors approved a dividend of 0.115 per share for the quarter ended June 30, 2020. The dividend will be paid on August 21, 2020 to stockholders of record on August 7, 2020.CONFERENCE CALLThe Company will conduct a conference callwebcast at 1:30 PM Eastern Daylight Time on Thursday, July 23, 2020 to discuss the results for the quarter, business highlights and outlook. The call can be accessed by dialing 877-504-4120 United States or 412-902-6650 internationally or by visiting A recorded playback of the call will be available for one week following the call at 877-344-7529 United States or 412-317-0088 internationally. The passcode for the playback is 10145885. The call will be available live and in a recorded version on the Companys website under Investor Relations at BROOKLINE BANCORP, INC.Brookline Bancorp, Inc., a bank holding company with 9.1 billion in assets and branch locations in Massachusetts and Rhode Island, is headquartered in Boston, Massachusetts and operates as the holding company for Brookline Bank and Bank Rhode Island the banks. The Company provides commercial and retail banking services, cash management and investment services to customers throughout Central New England. More information about Brookline Bancorp, Inc. and its banks can be found at the following websites: and STATEMENTSCertain statements contained in this press release that are not historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements contained in this press release that do not describe historical or current facts are forward-looking statements, including statements regard the potential effects of COVID-19 on the Companys business, credit quality, financial condition, liquidity and results of operations. 