Companies: 10,793     total market cap: $134.237 T
โ‚ฌEUR๐Ÿ‡ช๐Ÿ‡บโ‚นINR๐Ÿ‡ฎ๐Ÿ‡ณยฃGBP๐Ÿ‡ฌ๐Ÿ‡ง$CAD๐Ÿ‡จ๐Ÿ‡ฆ$AUD๐Ÿ‡ฆ๐Ÿ‡บ$NZD๐Ÿ‡ณ๐Ÿ‡ฟ$HKD๐Ÿ‡ญ๐Ÿ‡ฐ$SGD๐Ÿ‡ธ๐Ÿ‡ฌ
Brookline Bancorp
BRKL
#6031
Rank
$0.97 B
Marketcap
๐Ÿ‡บ๐Ÿ‡ธ United States
Country
$10.95
Share price
0.00%
Change (1 day)
-51.44%
Change (1 year)
๐Ÿฆ Banks๐Ÿ’ณ Financial services
Categories
  1. Brookline Bancorp
  2. Quarterly Reports (10-Q)
  3. Financial Year FY2019 Q3

Brookline Bancorp - 10-Q quarterly report FY2019 Q3


Text size:
P15YP30Y3013000000false--12-31Q320190001049782701400007515400000.110.010.012000000002000000008517717285177172109950923378094242825871176133581800037061000500000846000000000014000000001190402124600.33330.33330.33335020025500312700010497822019-01-012019-09-3000010497822019-10-3100010497822019-09-300001049782us-gaap:ConsumerPortfolioSegmentMember2019-09-3000010497822018-12-310001049782us-gaap:ConsumerPortfolioSegmentMember2018-12-310001049782us-gaap:CommercialRealEstatePortfolioSegmentMember2018-12-310001049782us-gaap:CommercialRealEstatePortfolioSegmentMember2019-09-300001049782us-gaap:CommercialPortfolioSegmentMember2019-09-300001049782us-gaap:CommercialPortfolioSegmentMember2018-12-3100010497822019-07-012019-09-3000010497822018-01-012018-09-3000010497822018-07-012018-09-300001049782us-gaap:DepositAccountMember2019-07-012019-09-300001049782us-gaap:FinancialServiceOtherMember2019-01-012019-09-300001049782us-gaap:FinancialServiceOtherMember2019-07-012019-09-300001049782us-gaap:FinancialServiceOtherMember2018-01-012018-09-300001049782us-gaap:DepositAccountMember2018-01-012018-09-300001049782us-gaap:DepositAccountMember2019-01-012019-09-300001049782us-gaap:DepositAccountMember2018-07-012018-09-300001049782us-gaap:FinancialServiceOtherMember2018-07-012018-09-300001049782us-gaap:TreasuryStockMember2019-01-012019-09-300001049782us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-09-300001049782us-gaap:ParentMember2019-09-300001049782us-gaap:RetainedEarningsMember2019-09-300001049782brkl:CommonStockHeldByEmployeeStockOptionPlanUnallocatedMember2019-01-012019-09-300001049782us-gaap:CommonStockMember2018-12-310001049782us-gaap:AdditionalPaidInCapitalMember2018-12-310001049782us-gaap:NoncontrollingInterestMember2019-01-012019-09-300001049782us-gaap:AdditionalPaidInCapitalMember2019-01-012019-09-300001049782brkl:CommonStockHeldByEmployeeStockOptionPlanUnallocatedMember2018-12-310001049782us-gaap:ParentMember2019-01-012019-09-300001049782us-gaap:RetainedEarningsMember2019-01-012019-09-300001049782us-gaap:ParentMember2018-12-310001049782brkl:CommonStockHeldByEmployeeStockOptionPlanUnallocatedMember2019-09-300001049782us-gaap:NoncontrollingInterestMember2018-12-310001049782us-gaap:TreasuryStockMember2018-12-310001049782us-gaap:RetainedEarningsMember2018-12-310001049782us-gaap:NoncontrollingInterestMember2019-09-300001049782us-gaap:TreasuryStockMember2019-09-300001049782us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-12-310001049782us-gaap:AdditionalPaidInCapitalMember2019-09-300001049782us-gaap:CommonStockMember2019-09-300001049782us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-01-012019-09-300001049782us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-09-300001049782us-gaap:ParentMember2018-01-012018-09-300001049782us-gaap:ParentMember2017-12-310001049782us-gaap:AdditionalPaidInCapitalMember2018-09-300001049782us-gaap:RetainedEarningsMember2017-12-310001049782us-gaap:AccumulatedOtherComprehensiveIncomeMember2017-12-310001049782us-gaap:CommonStockMember2018-01-012018-09-300001049782us-gaap:NoncontrollingInterestMember2017-12-310001049782us-gaap:TreasuryStockMember2017-12-3100010497822017-12-310001049782us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-01-012018-09-300001049782us-gaap:NoncontrollingInterestMember2018-01-012018-09-300001049782us-gaap:AdditionalPaidInCapitalMember2017-12-310001049782us-gaap:RetainedEarningsMember2018-01-012018-09-300001049782us-gaap:AdditionalPaidInCapitalMember2018-01-012018-09-300001049782brkl:CommonStockHeldByEmployeeStockOptionPlanUnallocatedMember2018-09-300001049782brkl:CommonStockHeldByEmployeeStockOptionPlanUnallocatedMember2017-12-310001049782us-gaap:CommonStockMember2017-12-310001049782us-gaap:NoncontrollingInterestMember2018-09-3000010497822018-09-300001049782us-gaap:ParentMember2018-09-300001049782us-gaap:TreasuryStockMember2018-09-300001049782us-gaap:CommonStockMember2018-09-300001049782us-gaap:RetainedEarningsMember2018-09-300001049782brkl:CommonStockHeldByEmployeeStockOptionPlanUnallocatedMember2018-01-012018-09-300001049782us-gaap:TreasuryStockMember2018-01-012018-09-300001049782us-gaap:ParentMember2018-06-300001049782brkl:CommonStockHeldByEmployeeStockOptionPlanUnallocatedMember2018-06-300001049782us-gaap:AdditionalPaidInCapitalMember2018-06-300001049782us-gaap:AdditionalPaidInCapitalMember2018-07-012018-09-300001049782us-gaap:NoncontrollingInterestMember2018-07-012018-09-300001049782us-gaap:ParentMember2018-07-012018-09-300001049782brkl:CommonStockHeldByEmployeeStockOptionPlanUnallocatedMember2018-07-012018-09-300001049782us-gaap:TreasuryStockMember2018-07-012018-09-300001049782us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-07-012018-09-300001049782us-gaap:RetainedEarningsMember2018-06-300001049782us-gaap:RetainedEarningsMember2018-07-012018-09-300001049782us-gaap:TreasuryStockMember2018-06-3000010497822018-06-300001049782us-gaap:NoncontrollingInterestMember2018-06-300001049782us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-06-300001049782us-gaap:CommonStockMember2018-06-300001049782us-gaap:RetainedEarningsMember2019-07-012019-09-300001049782us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-06-300001049782us-gaap:AdditionalPaidInCapitalMember2019-07-012019-09-300001049782us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-07-012019-09-300001049782us-gaap:TreasuryStockMember2019-06-300001049782us-gaap:ParentMember2019-07-012019-09-300001049782us-gaap:TreasuryStockMember2019-07-012019-09-300001049782us-gaap:RetainedEarningsMember2019-06-300001049782us-gaap:CommonStockMember2019-06-300001049782brkl:CommonStockHeldByEmployeeStockOptionPlanUnallocatedMember2019-06-300001049782us-gaap:AdditionalPaidInCapitalMember2019-06-300001049782brkl:CommonStockHeldByEmployeeStockOptionPlanUnallocatedMember2019-07-012019-09-3000010497822019-06-300001049782us-gaap:NoncontrollingInterestMember2019-06-300001049782us-gaap:ParentMember2019-06-300001049782brkl:FirstCommonsBankMember2019-01-012019-09-300001049782brkl:FirstCommonsBankMember2018-01-012018-09-300001049782brkl:FirstIpswichBancorpMember2019-01-012019-09-300001049782brkl:BrooklineBankMember2018-12-310001049782brkl:BankRhodeIslandMember2019-01-012019-09-300001049782brkl:BrooklineBankMember2019-01-042019-01-040001049782brkl:BrooklineBankMember2019-01-040001049782us-gaap:AccountingStandardsUpdate201613Member2019-09-300001049782us-gaap:MunicipalBondsMember2019-09-300001049782us-gaap:USTreasuryAndGovernmentMember2019-09-300001049782us-gaap:ForeignGovernmentDebtSecuritiesMember2019-09-300001049782us-gaap:MortgageBackedSecuritiesMember2019-09-300001049782us-gaap:CollateralizedMortgageObligationsMember2019-09-300001049782brkl:SBACommercialLoanAssetBackedSecuritiesMember2019-09-300001049782us-gaap:USTreasuryAndGovernmentMember2019-09-300001049782us-gaap:ForeignGovernmentDebtSecuritiesMember2019-09-300001049782us-gaap:USTreasuryBondSecuritiesMember2019-09-300001049782us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2019-09-300001049782us-gaap:CorporateDebtSecuritiesMember2019-09-300001049782brkl:CollateralizedMortgageObligationsIssuedByUSGovernmentSponsoredEnterprisesMember2019-09-300001049782us-gaap:MunicipalBondsMember2019-09-300001049782brkl:SBACommercialLoanAssetBackedSecuritiesMember2019-09-300001049782us-gaap:CollateralizedMortgageObligationsMember2018-12-310001049782srt:SubsidiariesMemberbrkl:CommunityBankSystemsInc.Member2017-02-030001049782brkl:USGovernmentSponsoredEnterprisesDebtSecuritiesExcludingSpecifiedSecuritiesMember2019-09-300001049782us-gaap:CorporateDebtSecuritiesMember2018-12-310001049782us-gaap:CollateralizedMortgageObligationsMember2019-09-300001049782brkl:SBACommercialLoanAssetBackedSecuritiesMember2018-12-310001049782us-gaap:USTreasurySecuritiesMember2018-01-012018-09-300001049782us-gaap:MortgageBackedSecuritiesMember2018-12-310001049782srt:SubsidiariesMemberbrkl:CommunityBankSystemsInc.Member2018-03-062018-03-060001049782us-gaap:MortgageBackedSecuritiesMember2019-09-300001049782us-gaap:USTreasurySecuritiesMember2019-09-300001049782us-gaap:MortgageBackedSecuritiesMember2019-01-012019-09-300001049782us-gaap:MunicipalBondsMember2018-12-310001049782us-gaap:USTreasuryAndGovernmentMember2018-12-310001049782us-gaap:MortgageBackedSecuritiesMember2018-01-012018-09-300001049782us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2018-12-310001049782us-gaap:CorporateDebtSecuritiesMember2019-01-012019-09-300001049782us-gaap:CollateralPledgedMember2018-12-310001049782us-gaap:USTreasurySecuritiesMember2018-12-310001049782srt:SubsidiariesMemberbrkl:LongwoodSecuritiesMember2018-03-012018-03-310001049782brkl:USGovernmentSponsoredEnterprisesDebtSecuritiesExcludingSpecifiedSecuritiesMember2018-12-310001049782brkl:SBACommercialLoanAssetBackedSecuritiesMember2019-01-012019-09-300001049782us-gaap:CollateralPledgedMember2019-09-300001049782us-gaap:USTreasuryAndGovernmentMember2019-01-012019-09-300001049782us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2019-01-012019-09-300001049782us-gaap:CollateralizedMortgageObligationsMember2019-01-012019-09-300001049782us-gaap:MunicipalBondsMember2019-01-012019-09-300001049782us-gaap:ForeignGovernmentDebtSecuritiesMember2018-01-012018-09-300001049782srt:SubsidiariesMemberbrkl:LongwoodSecuritiesMember2018-03-310001049782us-gaap:USTreasurySecuritiesMember2019-01-012019-09-300001049782us-gaap:USTreasuryAndGovernmentMember2018-01-012018-09-300001049782srt:SubsidiariesMemberbrkl:NortheastRetirementServicesMember2017-02-030001049782us-gaap:ForeignGovernmentDebtSecuritiesMember2018-12-310001049782us-gaap:USTreasuryBondSecuritiesMember2018-12-310001049782brkl:CollateralizedMortgageObligationsIssuedByUSGovernmentSponsoredEnterprisesMember2018-12-310001049782us-gaap:USTreasuryBondSecuritiesMember2018-12-310001049782us-gaap:CorporateDebtSecuritiesMember2018-12-310001049782us-gaap:USTreasuryAndGovernmentMember2018-12-310001049782us-gaap:CollateralizedMortgageObligationsMember2018-12-310001049782us-gaap:MortgageBackedSecuritiesMember2018-12-310001049782us-gaap:ForeignGovernmentDebtSecuritiesMember2018-12-310001049782brkl:SBACommercialLoanAssetBackedSecuritiesMember2018-12-310001049782us-gaap:MunicipalBondsMember2018-12-310001049782us-gaap:CollateralizedMortgageObligationsMember2018-01-012018-09-300001049782brkl:SBACommercialLoanAssetBackedSecuritiesMember2018-01-012018-09-300001049782us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2018-01-012018-09-300001049782us-gaap:CorporateDebtSecuritiesMember2018-01-012018-09-300001049782us-gaap:MunicipalBondsMember2018-01-012018-09-300001049782us-gaap:CommercialRealEstatePortfolioSegmentMember2019-01-012019-09-300001049782us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:ConstructionLoansMember2019-09-300001049782us-gaap:ConsumerPortfolioSegmentMemberbrkl:OtherConsumerMember2019-09-300001049782us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialLoanMember2019-09-300001049782us-gaap:ConsumerPortfolioSegmentMemberbrkl:OtherConsumerMember2019-01-012019-09-300001049782us-gaap:CommercialPortfolioSegmentMemberbrkl:CommercialLoansCondominiumAssociationReceivableMember2019-09-300001049782us-gaap:CommercialRealEstatePortfolioSegmentMemberbrkl:CommercialRealEstateMortgageMember2019-09-300001049782us-gaap:ConsumerPortfolioSegmentMemberus-gaap:ResidentialMortgageMember2019-01-012019-09-300001049782us-gaap:CommercialPortfolioSegmentMember2019-01-012019-09-300001049782us-gaap:CommercialPortfolioSegmentMemberbrkl:CommercialLoansCondominiumAssociationReceivableMember2019-01-012019-09-300001049782us-gaap:ConsumerPortfolioSegmentMemberus-gaap:ResidentialMortgageMember2019-09-300001049782us-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityMember2019-01-012019-09-300001049782us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:ConstructionLoansMember2019-01-012019-09-300001049782us-gaap:CommercialRealEstatePortfolioSegmentMemberbrkl:CommercialRealEstateMortgageMember2019-01-012019-09-300001049782us-gaap:CommercialRealEstatePortfolioSegmentMemberbrkl:CommercialRealEstateMultiFamilyReceivableMember2019-01-012019-09-300001049782us-gaap:CommercialRealEstatePortfolioSegmentMemberbrkl:CommercialRealEstateMultiFamilyReceivableMember2019-09-300001049782us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialLoanMember2019-01-012019-09-300001049782us-gaap:ConsumerPortfolioSegmentMember2019-01-012019-09-300001049782us-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityMember2019-09-300001049782us-gaap:CommercialRealEstatePortfolioSegmentMember2019-09-300001049782us-gaap:CommercialPortfolioSegmentMemberbrkl:CommercialLoansEquipmentFinancingLoansMember2019-09-300001049782us-gaap:CommercialPortfolioSegmentMember2019-09-300001049782us-gaap:CommercialPortfolioSegmentMemberbrkl:CommercialLoansEquipmentFinancingLoansMember2019-01-012019-09-300001049782us-gaap:ConsumerPortfolioSegmentMember2019-09-300001049782brkl:AcquiredFinancingReceivableMember2017-12-310001049782brkl:AcquiredFinancingReceivableMember2019-06-300001049782brkl:AcquiredFinancingReceivableMember2018-09-300001049782brkl:AcquiredFinancingReceivableMember2018-12-310001049782brkl:AcquiredFinancingReceivableMember2019-01-012019-09-300001049782brkl:AcquiredFinancingReceivableMember2018-01-012018-09-300001049782brkl:AcquiredFinancingReceivableMember2019-09-300001049782brkl:AcquiredFinancingReceivableMember2018-07-012018-09-300001049782brkl:AcquiredFinancingReceivableMember2019-07-012019-09-300001049782brkl:AcquiredFinancingReceivableMember2018-06-300001049782us-gaap:ConsumerPortfolioSegmentMember2018-01-012018-12-310001049782us-gaap:CommercialPortfolioSegmentMemberbrkl:CommercialLoansEquipmentFinancingLoansMember2018-12-310001049782us-gaap:ConsumerPortfolioSegmentMemberbrkl:OtherConsumerMember2018-12-310001049782us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialLoanMember2018-01-012018-12-310001049782us-gaap:ConsumerPortfolioSegmentMemberus-gaap:ResidentialMortgageMember2018-12-310001049782us-gaap:CommercialRealEstatePortfolioSegmentMemberbrkl:CommercialRealEstateMortgageMember2018-12-310001049782us-gaap:CommercialPortfolioSegmentMemberbrkl:CommercialLoansEquipmentFinancingLoansMember2018-01-012018-12-310001049782us-gaap:CommercialRealEstatePortfolioSegmentMember2018-01-012018-12-310001049782us-gaap:CommercialPortfolioSegmentMember2018-01-012018-12-310001049782us-gaap:ConsumerPortfolioSegmentMemberbrkl:OtherConsumerMember2018-01-012018-12-310001049782us-gaap:CommercialRealEstatePortfolioSegmentMember2018-12-310001049782us-gaap:CommercialRealEstatePortfolioSegmentMemberbrkl:CommercialRealEstateMultiFamilyReceivableMember2018-12-310001049782us-gaap:CommercialRealEstatePortfolioSegmentMemberbrkl:CommercialRealEstateMortgageMember2018-01-012018-12-310001049782us-gaap:ConsumerPortfolioSegmentMemberus-gaap:ResidentialMortgageMember2018-01-012018-12-310001049782us-gaap:ConsumerPortfolioSegmentMember2018-12-3100010497822018-01-012018-12-310001049782us-gaap:CommercialPortfolioSegmentMember2018-12-310001049782us-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialLoanMember2018-12-310001049782us-gaap:CommercialPortfolioSegmentMemberbrkl:CommercialLoansCondominiumAssociationReceivableMember2018-12-310001049782us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:ConstructionLoansMember2018-01-012018-12-310001049782us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:ConstructionLoansMember2018-12-310001049782us-gaap:CommercialPortfolioSegmentMemberbrkl:CommercialLoansCondominiumAssociationReceivableMember2018-01-012018-12-310001049782us-gaap:CommercialRealEstatePortfolioSegmentMemberbrkl:CommercialRealEstateMultiFamilyReceivableMember2018-01-012018-12-310001049782us-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityMember2018-01-012018-12-310001049782us-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:ResidentialMortgageMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberbrkl:FinancingReceivables61to90DaysPastDueMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:ConstructionLoansMemberbrkl:FinancingReceivables61to90DaysPastDueMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberbrkl:OtherConsumerMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMemberbrkl:CommercialLoansEquipmentFinancingLoansMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialLoanMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityMemberbrkl:FinancingReceivables31to60DaysPastDueMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberbrkl:CommercialRealEstateMultiFamilyReceivableMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:ConstructionLoansMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMemberbrkl:CommercialLoansEquipmentFinancingLoansMemberbrkl:FinancingReceivablesGreaterthan90DaysPastDueMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberbrkl:FinancingReceivables31to60DaysPastDueMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberbrkl:OtherConsumerMemberbrkl:FinancingReceivables61to90DaysPastDueMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:ResidentialMortgageMemberbrkl:FinancingReceivables31to60DaysPastDueMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberbrkl:OtherConsumerMemberbrkl:FinancingReceivables31to60DaysPastDueMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:ConstructionLoansMemberbrkl:FinancingReceivablesGreaterthan90DaysPastDueMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberbrkl:FinancingReceivables31to60DaysPastDueMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityMemberbrkl:FinancingReceivables61to90DaysPastDueMember2018-12-310001049782brkl:FinancingReceivables31to60DaysPastDueMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialLoanMemberbrkl:FinancingReceivables61to90DaysPastDueMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberbrkl:CommercialRealEstateMortgageMemberbrkl:FinancingReceivablesGreaterthan90DaysPastDueMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberbrkl:CommercialRealEstateMultiFamilyReceivableMemberbrkl:FinancingReceivablesGreaterthan90DaysPastDueMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberbrkl:CommercialRealEstateMortgageMemberbrkl:FinancingReceivables31to60DaysPastDueMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberbrkl:CommercialRealEstateMortgageMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMemberbrkl:FinancingReceivables31to60DaysPastDueMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:ConstructionLoansMemberbrkl:FinancingReceivables31to60DaysPastDueMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberbrkl:CommercialRealEstateMortgageMemberbrkl:FinancingReceivables61to90DaysPastDueMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberbrkl:FinancingReceivablesGreaterthan90DaysPastDueMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberbrkl:FinancingReceivables61to90DaysPastDueMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberbrkl:FinancingReceivables31to60DaysPastDueMember2018-12-310001049782brkl:FinancingReceivables61to90DaysPastDueMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberbrkl:CommercialRealEstateMultiFamilyReceivableMemberbrkl:FinancingReceivables61to90DaysPastDueMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberbrkl:CommercialRealEstateMultiFamilyReceivableMemberbrkl:FinancingReceivables31to60DaysPastDueMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberbrkl:FinancingReceivables61to90DaysPastDueMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMemberbrkl:CommercialLoansEquipmentFinancingLoansMemberbrkl:FinancingReceivables61to90DaysPastDueMember2018-12-310001049782brkl:FinancingReceivablesGreaterthan90DaysPastDueMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMemberbrkl:FinancingReceivablesGreaterthan90DaysPastDueMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:ResidentialMortgageMemberbrkl:FinancingReceivablesGreaterthan90DaysPastDueMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:ResidentialMortgageMemberbrkl:FinancingReceivables61to90DaysPastDueMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMemberbrkl:FinancingReceivables61to90DaysPastDueMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberbrkl:OtherConsumerMemberbrkl:FinancingReceivablesGreaterthan90DaysPastDueMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialLoanMemberbrkl:FinancingReceivables31to60DaysPastDueMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberbrkl:FinancingReceivablesGreaterthan90DaysPastDueMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMemberbrkl:CommercialLoansEquipmentFinancingLoansMemberbrkl:FinancingReceivables31to60DaysPastDueMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberbrkl:FinancingReceivablesGreaterthan90DaysPastDueMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityMemberbrkl:FinancingReceivablesGreaterthan90DaysPastDueMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialLoanMemberbrkl:FinancingReceivablesGreaterthan90DaysPastDueMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMember2019-07-012019-09-300001049782us-gaap:FinancialAssetOriginatedMemberus-gaap:ConsumerPortfolioSegmentMember2019-07-012019-09-300001049782brkl:AcquiredFinancingReceivableMember2019-07-012019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMember2019-07-012019-09-300001049782us-gaap:FinancialAssetOriginatedMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2019-07-012019-09-300001049782us-gaap:FinancialAssetOriginatedMember2018-07-012018-09-300001049782us-gaap:FinancialAssetOriginatedMember2019-07-012019-09-300001049782us-gaap:FinancialAssetOriginatedMemberus-gaap:ConsumerPortfolioSegmentMember2018-07-012018-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMember2018-07-012018-09-300001049782brkl:AcquiredFinancingReceivableMember2018-07-012018-09-300001049782us-gaap:FinancialAssetOriginatedMemberus-gaap:CommercialPortfolioSegmentMember2018-07-012018-09-300001049782us-gaap:FinancialAssetOriginatedMemberus-gaap:CommercialPortfolioSegmentMember2019-07-012019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2019-07-012019-09-300001049782us-gaap:FinancialAssetOriginatedMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2018-07-012018-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2018-07-012018-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMember2018-07-012018-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:ResidentialMortgageMember2019-01-012019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:ConstructionLoansMember2019-01-012019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:HomeEquityMember2019-01-012019-09-300001049782brkl:OriginatedFinancingReceivableMemberbrkl:CommercialRealEstateMortgageMember2019-01-012019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:ResidentialMortgageMember2019-01-012019-09-300001049782brkl:OriginatedFinancingReceivableMemberbrkl:CommercialLoansEquipmentFinancingLoansMember2019-01-012019-09-300001049782brkl:OriginatedFinancingReceivableMember2019-01-012019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialLoanMember2019-01-012019-09-300001049782us-gaap:CommercialPortfolioSegmentMember2019-06-300001049782us-gaap:CommercialRealEstatePortfolioSegmentMember2019-06-300001049782us-gaap:CommercialRealEstatePortfolioSegmentMember2019-07-012019-09-300001049782us-gaap:ConsumerPortfolioSegmentMember2019-07-012019-09-300001049782us-gaap:CommercialPortfolioSegmentMember2019-07-012019-09-300001049782us-gaap:ConsumerPortfolioSegmentMember2019-06-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:HomeEquityMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberbrkl:LoanToValueRatio50To69PercentMemberus-gaap:ResidentialMortgageMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberbrkl:LoanToValueRatioDataNotAvailableMemberus-gaap:HomeEquityMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberbrkl:LoanToValueRatioDataNotAvailableMemberus-gaap:ResidentialMortgageMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberbrkl:LoanToValueRatioEqualToOrMoreThan80PercentMemberus-gaap:HomeEquityMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberbrkl:LoanToValueRatio70To79PercentMemberus-gaap:HomeEquityMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberbrkl:LoanToValueRatio70To79PercentMemberus-gaap:HomeEquityMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberbrkl:LoanToValueRatio70To79PercentMemberus-gaap:ResidentialMortgageMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberbrkl:LoanToValueRatioEqualToOrMoreThan80PercentMemberus-gaap:ResidentialMortgageMember2018-12-310001049782us-gaap:ResidentialMortgageMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:HomeEquityMember2018-12-310001049782us-gaap:HomeEquityMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:ResidentialMortgageMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberbrkl:LoanToValueRatio70To79PercentMemberus-gaap:ResidentialMortgageMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberbrkl:LoanToValueRatioDataNotAvailableMemberus-gaap:HomeEquityMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberbrkl:LoanToValueRatioLessThan50PercentMemberus-gaap:ResidentialMortgageMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberbrkl:LoanToValueRatioLessThan50PercentMemberus-gaap:ResidentialMortgageMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:ResidentialMortgageMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberbrkl:LoanToValueRatioLessThan50PercentMemberus-gaap:HomeEquityMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberbrkl:LoanToValueRatio50To69PercentMemberus-gaap:HomeEquityMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberbrkl:LoanToValueRatioLessThan50PercentMemberus-gaap:HomeEquityMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberbrkl:LoanToValueRatioEqualToOrMoreThan80PercentMemberus-gaap:ResidentialMortgageMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberbrkl:LoanToValueRatioEqualToOrMoreThan80PercentMemberus-gaap:HomeEquityMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberbrkl:LoanToValueRatio50To69PercentMemberus-gaap:ResidentialMortgageMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberbrkl:LoanToValueRatio50To69PercentMemberus-gaap:HomeEquityMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberbrkl:LoanToValueRatioDataNotAvailableMemberus-gaap:ResidentialMortgageMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:ResidentialMortgageMember2018-07-012018-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialLoanMember2018-07-012018-09-300001049782brkl:OriginatedFinancingReceivableMember2018-07-012018-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberbrkl:OtherConsumerMemberbrkl:FinancingReceivablesGreaterthan90DaysPastDueMember2018-12-310001049782brkl:OriginatedFinancingReceivableMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:ResidentialMortgageMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMemberbrkl:CommercialLoansEquipmentFinancingLoansMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:ConstructionLoansMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMemberbrkl:FinancingReceivablesGreaterthan90DaysPastDueMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberbrkl:CommercialRealEstateMultiFamilyReceivableMemberbrkl:FinancingReceivablesGreaterthan90DaysPastDueMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialLoanMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMemberbrkl:FinancingReceivables61to90DaysPastDueMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberbrkl:CommercialRealEstateMortgageMemberbrkl:FinancingReceivables61to90DaysPastDueMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberbrkl:CommercialRealEstateMortgageMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberbrkl:FinancingReceivablesGreaterthan90DaysPastDueMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMemberbrkl:CommercialLoansCondominiumAssociationReceivableMemberbrkl:FinancingReceivablesGreaterthan90DaysPastDueMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMemberbrkl:CommercialLoansCondominiumAssociationReceivableMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityMemberbrkl:FinancingReceivables61to90DaysPastDueMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberbrkl:FinancingReceivables31to60DaysPastDueMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberbrkl:OtherConsumerMemberbrkl:FinancingReceivables61to90DaysPastDueMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberbrkl:FinancingReceivables31to60DaysPastDueMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialLoanMemberbrkl:FinancingReceivablesGreaterthan90DaysPastDueMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityMemberbrkl:FinancingReceivables31to60DaysPastDueMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberbrkl:CommercialRealEstateMultiFamilyReceivableMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMemberbrkl:CommercialLoansEquipmentFinancingLoansMemberbrkl:FinancingReceivables31to60DaysPastDueMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:ResidentialMortgageMemberbrkl:FinancingReceivables61to90DaysPastDueMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialLoanMemberbrkl:FinancingReceivables61to90DaysPastDueMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberbrkl:FinancingReceivablesGreaterthan90DaysPastDueMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialLoanMemberbrkl:FinancingReceivables31to60DaysPastDueMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberbrkl:OtherConsumerMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberbrkl:FinancingReceivables61to90DaysPastDueMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:ConstructionLoansMemberbrkl:FinancingReceivables31to60DaysPastDueMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMemberbrkl:CommercialLoansEquipmentFinancingLoansMemberbrkl:FinancingReceivables61to90DaysPastDueMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberbrkl:CommercialRealEstateMultiFamilyReceivableMemberbrkl:FinancingReceivables31to60DaysPastDueMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMemberbrkl:CommercialLoansEquipmentFinancingLoansMemberbrkl:FinancingReceivablesGreaterthan90DaysPastDueMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberbrkl:FinancingReceivablesGreaterthan90DaysPastDueMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberbrkl:CommercialRealEstateMultiFamilyReceivableMemberbrkl:FinancingReceivables61to90DaysPastDueMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberbrkl:FinancingReceivables61to90DaysPastDueMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMemberbrkl:FinancingReceivables31to60DaysPastDueMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberbrkl:OtherConsumerMemberbrkl:FinancingReceivables31to60DaysPastDueMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:ConstructionLoansMemberbrkl:FinancingReceivables61to90DaysPastDueMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMemberbrkl:CommercialLoansCondominiumAssociationReceivableMemberbrkl:FinancingReceivables61to90DaysPastDueMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMemberbrkl:CommercialLoansCondominiumAssociationReceivableMemberbrkl:FinancingReceivables31to60DaysPastDueMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberbrkl:CommercialRealEstateMortgageMemberbrkl:FinancingReceivables31to60DaysPastDueMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberbrkl:CommercialRealEstateMortgageMemberbrkl:FinancingReceivablesGreaterthan90DaysPastDueMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityMemberbrkl:FinancingReceivablesGreaterthan90DaysPastDueMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberbrkl:FinancingReceivables61to90DaysPastDueMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:ConstructionLoansMemberbrkl:FinancingReceivablesGreaterthan90DaysPastDueMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberbrkl:FinancingReceivables31to60DaysPastDueMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:ResidentialMortgageMemberbrkl:FinancingReceivables31to60DaysPastDueMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:ResidentialMortgageMemberbrkl:FinancingReceivablesGreaterthan90DaysPastDueMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:ResidentialMortgageMember2019-07-012019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialLoanMember2019-07-012019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:ResidentialMortgageMember2019-07-012019-09-300001049782brkl:OriginatedFinancingReceivableMemberbrkl:CommercialLoansEquipmentFinancingLoansMember2019-07-012019-09-300001049782brkl:OriginatedFinancingReceivableMember2019-07-012019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:HomeEquityMember2019-07-012019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:ConstructionLoansMember2019-07-012019-09-300001049782us-gaap:CommercialPortfolioSegmentMember2018-07-012018-09-300001049782us-gaap:ConsumerPortfolioSegmentMember2018-07-012018-09-300001049782us-gaap:CommercialRealEstatePortfolioSegmentMember2018-01-012018-09-300001049782us-gaap:CommercialRealEstatePortfolioSegmentMember2018-07-012018-09-300001049782us-gaap:ConsumerPortfolioSegmentMember2018-01-012018-09-300001049782us-gaap:CommercialPortfolioSegmentMember2018-01-012018-09-300001049782brkl:OriginatedFinancingReceivableMemberbrkl:CommercialLoansCondominiumAssociationReceivableMemberus-gaap:PassMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberbrkl:CommercialRealEstateMultiFamilyReceivableMemberus-gaap:SubstandardMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberbrkl:CommercialLoansEquipmentFinancingLoansMemberus-gaap:PassMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberbrkl:OtherConsumerMemberus-gaap:DoubtfulMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberbrkl:CommercialLoansCondominiumAssociationReceivableMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberbrkl:TotalMemberus-gaap:DoubtfulMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialLoanMemberus-gaap:SubstandardMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialLoanMemberus-gaap:PassMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberbrkl:CommercialLoansEquipmentFinancingLoansMemberus-gaap:SubstandardMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:ConstructionLoansMemberus-gaap:SpecialMentionMember2018-12-310001049782brkl:OtherConsumerMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberbrkl:CommercialRealEstateMultiFamilyReceivableMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberbrkl:CommercialRealEstateMultiFamilyReceivableMemberus-gaap:PassMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberbrkl:OtherConsumerMemberus-gaap:SpecialMentionMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberbrkl:OtherConsumerMemberus-gaap:SubstandardMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberbrkl:TotalMemberus-gaap:SubstandardMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberbrkl:CommercialLoansEquipmentFinancingLoansMemberus-gaap:SpecialMentionMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberbrkl:CommercialLoansEquipmentFinancingLoansMemberus-gaap:DoubtfulMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:ConstructionLoansMemberus-gaap:SpecialMentionMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:ConstructionLoansMemberus-gaap:PassMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberbrkl:CommercialRealEstateMultiFamilyReceivableMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberbrkl:TotalMemberus-gaap:PassMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberbrkl:CommercialLoansCondominiumAssociationReceivableMemberus-gaap:SpecialMentionMember2018-12-310001049782us-gaap:ConstructionLoansMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:ConstructionLoansMemberus-gaap:DoubtfulMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberbrkl:CommercialLoansEquipmentFinancingLoansMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberbrkl:CommercialRealEstateMultiFamilyReceivableMemberus-gaap:SubstandardMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberbrkl:CommercialRealEstateMortgageMemberus-gaap:SubstandardMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberbrkl:CommercialRealEstateMortgageMemberus-gaap:PassMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberbrkl:CommercialRealEstateMultiFamilyReceivableMemberus-gaap:SpecialMentionMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberbrkl:CommercialRealEstateMortgageMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberbrkl:TotalMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberbrkl:CommercialRealEstateMortgageMemberus-gaap:DoubtfulMember2018-12-310001049782brkl:TotalMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialLoanMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberbrkl:CommercialLoansEquipmentFinancingLoansMemberus-gaap:SpecialMentionMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberbrkl:TotalMemberus-gaap:SubstandardMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberbrkl:CommercialLoansCondominiumAssociationReceivableMemberus-gaap:DoubtfulMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:ConstructionLoansMemberus-gaap:PassMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberbrkl:OtherConsumerMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialLoanMemberus-gaap:SpecialMentionMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberbrkl:CommercialLoansCondominiumAssociationReceivableMemberus-gaap:SubstandardMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberbrkl:CommercialRealEstateMortgageMemberus-gaap:SpecialMentionMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberbrkl:CommercialRealEstateMortgageMemberus-gaap:PassMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberbrkl:OtherConsumerMemberus-gaap:PassMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialLoanMemberus-gaap:SpecialMentionMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialLoanMemberus-gaap:PassMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberbrkl:CommercialRealEstateMultiFamilyReceivableMemberus-gaap:DoubtfulMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialLoanMemberus-gaap:SubstandardMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberbrkl:TotalMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberbrkl:CommercialLoansCondominiumAssociationReceivableMemberus-gaap:SpecialMentionMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberbrkl:CommercialRealEstateMortgageMember2018-12-310001049782us-gaap:CommercialLoanMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberbrkl:TotalMemberus-gaap:PassMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:ConstructionLoansMemberus-gaap:SubstandardMember2018-12-310001049782brkl:CommercialLoansEquipmentFinancingLoansMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialLoanMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberbrkl:OtherConsumerMemberus-gaap:PassMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:ConstructionLoansMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberbrkl:TotalMemberus-gaap:SpecialMentionMember2018-12-310001049782brkl:CommercialLoansCondominiumAssociationReceivableMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberbrkl:CommercialLoansEquipmentFinancingLoansMemberus-gaap:SubstandardMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberbrkl:CommercialLoansCondominiumAssociationReceivableMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberbrkl:CommercialLoansEquipmentFinancingLoansMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberbrkl:CommercialLoansCondominiumAssociationReceivableMemberus-gaap:SubstandardMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberbrkl:OtherConsumerMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberbrkl:OtherConsumerMemberus-gaap:SubstandardMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberbrkl:CommercialRealEstateMultiFamilyReceivableMemberus-gaap:SpecialMentionMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:ConstructionLoansMemberus-gaap:SubstandardMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberbrkl:CommercialRealEstateMortgageMemberus-gaap:SpecialMentionMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberbrkl:CommercialRealEstateMortgageMemberus-gaap:SubstandardMember2018-12-310001049782brkl:CommercialRealEstateMortgageMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialLoanMemberus-gaap:DoubtfulMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberbrkl:TotalMemberus-gaap:SpecialMentionMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:ConstructionLoansMember2018-12-310001049782brkl:CommercialRealEstateMultiFamilyReceivableMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberbrkl:CommercialRealEstateMultiFamilyReceivableMemberus-gaap:PassMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberbrkl:OtherConsumerMemberus-gaap:SpecialMentionMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberbrkl:CommercialLoansCondominiumAssociationReceivableMemberus-gaap:PassMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberbrkl:CommercialLoansEquipmentFinancingLoansMemberus-gaap:PassMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMember2018-12-310001049782us-gaap:FinancialAssetOriginatedMemberus-gaap:CommercialPortfolioSegmentMember2018-12-310001049782brkl:AcquiredFinancingReceivableMember2018-12-310001049782us-gaap:FinancialAssetOriginatedMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2018-12-310001049782us-gaap:FinancialAssetOriginatedMemberus-gaap:CommercialPortfolioSegmentMember2019-09-300001049782us-gaap:FinancialAssetOriginatedMemberus-gaap:ConsumerPortfolioSegmentMember2019-09-300001049782us-gaap:FinancialAssetOriginatedMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2018-12-310001049782us-gaap:FinancialAssetOriginatedMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2019-09-300001049782brkl:AcquiredFinancingReceivableMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMember2018-12-310001049782us-gaap:FinancialAssetOriginatedMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMember2019-09-300001049782us-gaap:FinancialAssetOriginatedMemberus-gaap:ConsumerPortfolioSegmentMember2018-12-310001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2019-09-300001049782brkl:CombinationOfExtendedMaturityAdjustedPrincipalAndAdjustedInterestRateMember2018-07-012018-09-300001049782us-gaap:ExtendedMaturityMember2018-07-012018-09-300001049782brkl:CombinationOfExtendedMaturityAdjustedPrincipalAndAdjustedInterestRateMember2018-01-012018-09-300001049782us-gaap:ExtendedMaturityMember2019-01-012019-09-300001049782brkl:CombinationOfExtendedMaturityAdjustedPrincipalAndAdjustedInterestRateMember2019-07-012019-09-300001049782brkl:CombinationOfExtendedMaturityAdjustedPrincipalAndAdjustedInterestRateMember2019-01-012019-09-300001049782brkl:AdjustedInterestRateMember2018-07-012018-09-300001049782brkl:AdjustedInterestRateMember2019-01-012019-09-300001049782brkl:AdjustedInterestRateMember2019-07-012019-09-300001049782us-gaap:ExtendedMaturityMember2018-01-012018-09-300001049782us-gaap:ExtendedMaturityMember2019-07-012019-09-300001049782brkl:AdjustedInterestRateMember2018-01-012018-09-300001049782us-gaap:ConsumerPortfolioSegmentMember2017-12-310001049782us-gaap:CommercialRealEstatePortfolioSegmentMember2017-12-310001049782us-gaap:CommercialPortfolioSegmentMember2018-09-300001049782us-gaap:ConsumerPortfolioSegmentMember2018-09-300001049782us-gaap:CommercialPortfolioSegmentMember2017-12-310001049782us-gaap:CommercialRealEstatePortfolioSegmentMember2018-09-300001049782us-gaap:FinancialAssetOriginatedMember2019-01-012019-09-300001049782brkl:AcquiredFinancingReceivableMember2018-01-012018-09-300001049782brkl:AcquiredFinancingReceivableMember2019-01-012019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2019-01-012019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMember2018-01-012018-09-300001049782us-gaap:FinancialAssetOriginatedMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2019-01-012019-09-300001049782us-gaap:FinancialAssetOriginatedMemberus-gaap:ConsumerPortfolioSegmentMember2018-01-012018-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMember2018-01-012018-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMember2019-01-012019-09-300001049782us-gaap:FinancialAssetOriginatedMemberus-gaap:ConsumerPortfolioSegmentMember2019-01-012019-09-300001049782us-gaap:FinancialAssetOriginatedMember2018-01-012018-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2018-01-012018-09-300001049782us-gaap:FinancialAssetOriginatedMemberus-gaap:CommercialPortfolioSegmentMember2019-01-012019-09-300001049782us-gaap:FinancialAssetOriginatedMemberus-gaap:CommercialPortfolioSegmentMember2018-01-012018-09-300001049782us-gaap:FinancialAssetOriginatedMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2018-01-012018-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMember2019-01-012019-09-300001049782brkl:AcquiredFinancingReceivableMemberbrkl:LoanToValueRatioEqualToOrMoreThan80PercentMemberus-gaap:HomeEquityMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberbrkl:LoanToValueRatioLessThan50PercentMemberus-gaap:ResidentialMortgageMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberbrkl:LoanToValueRatio50To69PercentMemberus-gaap:HomeEquityMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberbrkl:LoanToValueRatioDataNotAvailableMemberus-gaap:HomeEquityMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberbrkl:LoanToValueRatioEqualToOrMoreThan80PercentMemberus-gaap:HomeEquityMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberbrkl:LoanToValueRatioEqualToOrMoreThan80PercentMemberus-gaap:ResidentialMortgageMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:ResidentialMortgageMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberbrkl:LoanToValueRatioDataNotAvailableMemberus-gaap:ResidentialMortgageMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberbrkl:LoanToValueRatioDataNotAvailableMemberus-gaap:HomeEquityMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberbrkl:LoanToValueRatioEqualToOrMoreThan80PercentMemberus-gaap:ResidentialMortgageMember2019-09-300001049782us-gaap:ResidentialMortgageMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberbrkl:LoanToValueRatio70To79PercentMemberus-gaap:HomeEquityMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberbrkl:LoanToValueRatioLessThan50PercentMemberus-gaap:ResidentialMortgageMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:ResidentialMortgageMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:HomeEquityMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:HomeEquityMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberbrkl:LoanToValueRatio50To69PercentMemberus-gaap:ResidentialMortgageMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberbrkl:LoanToValueRatio70To79PercentMemberus-gaap:ResidentialMortgageMember2019-09-300001049782us-gaap:HomeEquityMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberbrkl:LoanToValueRatio70To79PercentMemberus-gaap:HomeEquityMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberbrkl:LoanToValueRatioDataNotAvailableMemberus-gaap:ResidentialMortgageMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberbrkl:LoanToValueRatioLessThan50PercentMemberus-gaap:HomeEquityMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberbrkl:LoanToValueRatio70To79PercentMemberus-gaap:ResidentialMortgageMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberbrkl:LoanToValueRatio50To69PercentMemberus-gaap:HomeEquityMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberbrkl:LoanToValueRatio50To69PercentMemberus-gaap:ResidentialMortgageMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberbrkl:LoanToValueRatioLessThan50PercentMemberus-gaap:HomeEquityMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialLoanMemberus-gaap:SubstandardMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:ConstructionLoansMemberus-gaap:PassMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberbrkl:OtherConsumerMemberus-gaap:DoubtfulMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberbrkl:TotalMemberus-gaap:SpecialMentionMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberbrkl:OtherConsumerMemberus-gaap:SubstandardMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberbrkl:CommercialRealEstateMortgageMemberus-gaap:SpecialMentionMember2019-09-300001049782brkl:TotalMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberbrkl:CommercialRealEstateMortgageMemberus-gaap:PassMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:ConstructionLoansMemberus-gaap:SpecialMentionMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialLoanMemberus-gaap:SubstandardMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberbrkl:OtherConsumerMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialLoanMemberus-gaap:PassMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberbrkl:TotalMemberus-gaap:SubstandardMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberbrkl:CommercialRealEstateMultiFamilyReceivableMemberus-gaap:PassMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberbrkl:OtherConsumerMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:ConstructionLoansMemberus-gaap:SubstandardMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:ConstructionLoansMemberus-gaap:PassMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberbrkl:CommercialLoansEquipmentFinancingLoansMemberus-gaap:SubstandardMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberbrkl:TotalMemberus-gaap:SubstandardMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberbrkl:CommercialRealEstateMultiFamilyReceivableMember2019-09-300001049782brkl:CommercialLoansEquipmentFinancingLoansMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberbrkl:CommercialLoansCondominiumAssociationReceivableMemberus-gaap:SpecialMentionMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialLoanMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberbrkl:TotalMemberus-gaap:DoubtfulMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberbrkl:CommercialRealEstateMortgageMemberus-gaap:SubstandardMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialLoanMemberus-gaap:DoubtfulMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberbrkl:CommercialRealEstateMultiFamilyReceivableMemberus-gaap:DoubtfulMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberbrkl:CommercialLoansEquipmentFinancingLoansMemberus-gaap:SpecialMentionMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberbrkl:CommercialLoansCondominiumAssociationReceivableMemberus-gaap:PassMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:ConstructionLoansMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:ConstructionLoansMemberus-gaap:DoubtfulMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberbrkl:CommercialRealEstateMortgageMemberus-gaap:SpecialMentionMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberbrkl:CommercialRealEstateMultiFamilyReceivableMemberus-gaap:SubstandardMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:ConstructionLoansMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberbrkl:CommercialLoansCondominiumAssociationReceivableMemberus-gaap:DoubtfulMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberbrkl:CommercialLoansEquipmentFinancingLoansMember2019-09-300001049782brkl:CommercialLoansCondominiumAssociationReceivableMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberbrkl:CommercialRealEstateMortgageMember2019-09-300001049782us-gaap:ConstructionLoansMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberbrkl:CommercialLoansEquipmentFinancingLoansMemberus-gaap:SubstandardMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberbrkl:CommercialRealEstateMortgageMemberus-gaap:DoubtfulMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberbrkl:CommercialRealEstateMultiFamilyReceivableMemberus-gaap:PassMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberbrkl:TotalMemberus-gaap:SpecialMentionMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberbrkl:CommercialRealEstateMultiFamilyReceivableMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberbrkl:CommercialRealEstateMortgageMemberus-gaap:SubstandardMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberbrkl:OtherConsumerMemberus-gaap:SpecialMentionMember2019-09-300001049782brkl:CommercialRealEstateMultiFamilyReceivableMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberbrkl:CommercialRealEstateMultiFamilyReceivableMemberus-gaap:SubstandardMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberbrkl:CommercialLoansCondominiumAssociationReceivableMemberus-gaap:SubstandardMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberbrkl:OtherConsumerMemberus-gaap:SpecialMentionMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberbrkl:CommercialRealEstateMortgageMemberus-gaap:PassMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialLoanMember2019-09-300001049782brkl:OtherConsumerMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:ConstructionLoansMemberus-gaap:SubstandardMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberbrkl:TotalMemberus-gaap:PassMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberbrkl:CommercialLoansCondominiumAssociationReceivableMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialLoanMemberus-gaap:SpecialMentionMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:ConstructionLoansMemberus-gaap:SpecialMentionMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialLoanMemberus-gaap:SpecialMentionMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberbrkl:TotalMemberus-gaap:PassMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberbrkl:CommercialLoansEquipmentFinancingLoansMemberus-gaap:SpecialMentionMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberbrkl:OtherConsumerMemberus-gaap:SubstandardMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberbrkl:CommercialLoansEquipmentFinancingLoansMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialLoanMemberus-gaap:PassMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberbrkl:CommercialRealEstateMultiFamilyReceivableMemberus-gaap:SpecialMentionMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberbrkl:CommercialLoansCondominiumAssociationReceivableMemberus-gaap:SubstandardMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberbrkl:CommercialLoansCondominiumAssociationReceivableMemberus-gaap:SpecialMentionMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberbrkl:CommercialRealEstateMultiFamilyReceivableMemberus-gaap:SpecialMentionMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberbrkl:CommercialLoansEquipmentFinancingLoansMemberus-gaap:DoubtfulMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberbrkl:CommercialLoansEquipmentFinancingLoansMemberus-gaap:PassMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberbrkl:TotalMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberbrkl:CommercialRealEstateMortgageMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberbrkl:OtherConsumerMemberus-gaap:PassMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberbrkl:OtherConsumerMemberus-gaap:PassMember2019-09-300001049782us-gaap:CommercialLoanMember2019-09-300001049782brkl:CommercialRealEstateMortgageMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberbrkl:CommercialLoansEquipmentFinancingLoansMemberus-gaap:PassMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberbrkl:CommercialLoansCondominiumAssociationReceivableMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberbrkl:CommercialLoansCondominiumAssociationReceivableMemberus-gaap:PassMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberbrkl:TotalMember2019-09-300001049782us-gaap:FinancialAssetAcquiredAndNoCreditDeteriorationMemberus-gaap:CommercialPortfolioSegmentMember2019-09-300001049782us-gaap:FinancialAssetAcquiredWithCreditDeteriorationMemberus-gaap:ConsumerPortfolioSegmentMember2019-09-300001049782us-gaap:FinancialAssetAcquiredAndNoCreditDeteriorationMemberus-gaap:ConsumerPortfolioSegmentMember2019-09-300001049782us-gaap:FinancialAssetAcquiredWithCreditDeteriorationMemberus-gaap:CommercialPortfolioSegmentMember2019-09-300001049782us-gaap:FinancialAssetAcquiredWithCreditDeteriorationMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2019-09-300001049782us-gaap:FinancialAssetAcquiredAndNoCreditDeteriorationMember2019-09-300001049782us-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember2019-09-300001049782us-gaap:FinancialAssetAcquiredAndNoCreditDeteriorationMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberbrkl:FinancingReceivablesGreaterthan90DaysPastDueMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMemberbrkl:CommercialLoansEquipmentFinancingLoansMemberbrkl:FinancingReceivables31to60DaysPastDueMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberbrkl:FinancingReceivables31to60DaysPastDueMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberbrkl:OtherConsumerMemberbrkl:FinancingReceivables61to90DaysPastDueMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:ConstructionLoansMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberbrkl:OtherConsumerMemberbrkl:FinancingReceivables31to60DaysPastDueMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberbrkl:OtherConsumerMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityMemberbrkl:FinancingReceivablesGreaterthan90DaysPastDueMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberbrkl:CommercialRealEstateMortgageMemberbrkl:FinancingReceivables31to60DaysPastDueMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMemberbrkl:CommercialLoansCondominiumAssociationReceivableMemberbrkl:FinancingReceivablesGreaterthan90DaysPastDueMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberbrkl:CommercialRealEstateMortgageMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMemberbrkl:CommercialLoansEquipmentFinancingLoansMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberbrkl:CommercialRealEstateMultiFamilyReceivableMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityMemberbrkl:FinancingReceivables61to90DaysPastDueMember2019-09-300001049782brkl:OriginatedFinancingReceivableMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberbrkl:CommercialRealEstateMortgageMemberbrkl:FinancingReceivablesGreaterthan90DaysPastDueMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:ResidentialMortgageMemberbrkl:FinancingReceivables61to90DaysPastDueMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMemberbrkl:CommercialLoansCondominiumAssociationReceivableMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:ConstructionLoansMemberbrkl:FinancingReceivables61to90DaysPastDueMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialLoanMemberbrkl:FinancingReceivables31to60DaysPastDueMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialLoanMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberbrkl:FinancingReceivables61to90DaysPastDueMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMemberbrkl:FinancingReceivables31to60DaysPastDueMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberbrkl:FinancingReceivablesGreaterthan90DaysPastDueMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:ResidentialMortgageMemberbrkl:FinancingReceivables31to60DaysPastDueMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMemberbrkl:FinancingReceivablesGreaterthan90DaysPastDueMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:ResidentialMortgageMemberbrkl:FinancingReceivablesGreaterthan90DaysPastDueMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:ResidentialMortgageMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:ConstructionLoansMemberbrkl:FinancingReceivables31to60DaysPastDueMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberbrkl:FinancingReceivables31to60DaysPastDueMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:ConstructionLoansMemberbrkl:FinancingReceivablesGreaterthan90DaysPastDueMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberbrkl:CommercialRealEstateMultiFamilyReceivableMemberbrkl:FinancingReceivables31to60DaysPastDueMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMemberbrkl:CommercialLoansEquipmentFinancingLoansMemberbrkl:FinancingReceivablesGreaterthan90DaysPastDueMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialLoanMemberbrkl:FinancingReceivablesGreaterthan90DaysPastDueMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberbrkl:CommercialRealEstateMultiFamilyReceivableMemberbrkl:FinancingReceivables61to90DaysPastDueMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberbrkl:FinancingReceivablesGreaterthan90DaysPastDueMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMemberbrkl:FinancingReceivables61to90DaysPastDueMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberbrkl:FinancingReceivables61to90DaysPastDueMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMemberbrkl:CommercialLoansEquipmentFinancingLoansMemberbrkl:FinancingReceivables61to90DaysPastDueMember2019-09-300001049782us-gaap:FairValueMeasurementsNonrecurringMember2019-01-012019-09-300001049782us-gaap:FairValueMeasurementsRecurringMember2019-01-012019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberbrkl:OtherConsumerMemberbrkl:FinancingReceivablesGreaterthan90DaysPastDueMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityMemberbrkl:FinancingReceivables31to60DaysPastDueMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMemberbrkl:CommercialLoansCondominiumAssociationReceivableMemberbrkl:FinancingReceivables31to60DaysPastDueMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberbrkl:CommercialRealEstateMortgageMemberbrkl:FinancingReceivables61to90DaysPastDueMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialLoanMemberbrkl:FinancingReceivables61to90DaysPastDueMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberbrkl:FinancingReceivables61to90DaysPastDueMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberbrkl:FinancingReceivables31to60DaysPastDueMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMemberbrkl:CommercialLoansCondominiumAssociationReceivableMemberbrkl:FinancingReceivables61to90DaysPastDueMember2019-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberbrkl:CommercialRealEstateMultiFamilyReceivableMemberbrkl:FinancingReceivablesGreaterthan90DaysPastDueMember2019-09-300001049782us-gaap:CommercialRealEstatePortfolioSegmentMember2018-06-300001049782us-gaap:CommercialPortfolioSegmentMember2018-06-300001049782us-gaap:ConsumerPortfolioSegmentMember2018-06-300001049782us-gaap:FinancialAssetAcquiredAndNoCreditDeteriorationMember2018-12-310001049782us-gaap:FinancialAssetAcquiredWithCreditDeteriorationMember2018-12-310001049782us-gaap:FinancialAssetAcquiredAndNoCreditDeteriorationMemberus-gaap:ConsumerPortfolioSegmentMember2018-12-310001049782us-gaap:FinancialAssetAcquiredWithCreditDeteriorationMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2018-12-310001049782us-gaap:FinancialAssetAcquiredAndNoCreditDeteriorationMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2018-12-310001049782us-gaap:FinancialAssetAcquiredAndNoCreditDeteriorationMemberus-gaap:CommercialPortfolioSegmentMember2018-12-310001049782us-gaap:FinancialAssetAcquiredWithCreditDeteriorationMemberus-gaap:CommercialPortfolioSegmentMember2018-12-310001049782us-gaap:FinancialAssetAcquiredWithCreditDeteriorationMemberus-gaap:ConsumerPortfolioSegmentMember2018-12-310001049782brkl:OriginatedFinancingReceivableMemberbrkl:CommercialLoansEquipmentFinancingLoansMember2018-01-012018-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:HomeEquityMember2018-01-012018-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:CommercialLoanMember2018-01-012018-09-300001049782brkl:OriginatedFinancingReceivableMemberus-gaap:ResidentialMortgageMember2018-01-012018-09-300001049782brkl:OriginatedFinancingReceivableMember2018-01-012018-09-300001049782brkl:OriginatedFinancingReceivableMemberbrkl:CommercialRealEstateMortgageMember2018-01-012018-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:HomeEquityMember2018-01-012018-09-300001049782brkl:TotalTroubleDebtRestructuringsMember2019-09-300001049782brkl:TaxiMedallionPortfolioMember2019-09-300001049782brkl:TotalTroubleDebtRestructuringsMember2018-12-310001049782brkl:BostonMemberbrkl:TaxiMedallionPortfolioMember2019-09-300001049782brkl:TaxiMedallionPortfolioMember2018-12-310001049782brkl:CommercialRealEstateMortgageMember2019-09-300001049782us-gaap:ConsumerLoanMember2019-09-300001049782brkl:CambridgeMemberbrkl:TaxiMedallionPortfolioMember2019-09-300001049782brkl:TotalTroubleDebtRestructuringsMember2019-01-012019-09-300001049782brkl:TaxiMedallionPortfolioMember2019-01-012019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberbrkl:OtherConsumerMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:ConstructionLoansMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:ResidentialMortgageMemberbrkl:FinancingReceivables31to60DaysPastDueMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialLoanMemberbrkl:FinancingReceivablesGreaterthan90DaysPastDueMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberbrkl:CommercialRealEstateMortgageMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMemberbrkl:CommercialLoansEquipmentFinancingLoansMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMemberbrkl:FinancingReceivables61to90DaysPastDueMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:ConstructionLoansMemberbrkl:FinancingReceivables61to90DaysPastDueMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberbrkl:FinancingReceivables31to60DaysPastDueMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberbrkl:CommercialRealEstateMortgageMemberbrkl:FinancingReceivables61to90DaysPastDueMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberbrkl:CommercialRealEstateMultiFamilyReceivableMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialLoanMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityMemberbrkl:FinancingReceivables31to60DaysPastDueMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberbrkl:FinancingReceivablesGreaterthan90DaysPastDueMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialLoanMemberbrkl:FinancingReceivables61to90DaysPastDueMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityMemberbrkl:FinancingReceivables61to90DaysPastDueMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberbrkl:OtherConsumerMemberbrkl:FinancingReceivables31to60DaysPastDueMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMemberbrkl:CommercialLoansEquipmentFinancingLoansMemberbrkl:FinancingReceivables61to90DaysPastDueMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:ResidentialMortgageMember2019-09-300001049782brkl:FinancingReceivables61to90DaysPastDueMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMemberbrkl:FinancingReceivables31to60DaysPastDueMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:ResidentialMortgageMemberbrkl:FinancingReceivablesGreaterthan90DaysPastDueMember2019-09-300001049782brkl:FinancingReceivablesGreaterthan90DaysPastDueMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:HomeEquityMemberbrkl:FinancingReceivablesGreaterthan90DaysPastDueMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberbrkl:FinancingReceivables61to90DaysPastDueMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberbrkl:CommercialRealEstateMultiFamilyReceivableMemberbrkl:FinancingReceivables61to90DaysPastDueMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:ConstructionLoansMemberbrkl:FinancingReceivablesGreaterthan90DaysPastDueMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:ResidentialMortgageMemberbrkl:FinancingReceivables61to90DaysPastDueMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberbrkl:FinancingReceivablesGreaterthan90DaysPastDueMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberbrkl:FinancingReceivables31to60DaysPastDueMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberbrkl:FinancingReceivables61to90DaysPastDueMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberbrkl:FinancingReceivablesGreaterthan90DaysPastDueMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberbrkl:CommercialRealEstateMultiFamilyReceivableMemberbrkl:FinancingReceivablesGreaterthan90DaysPastDueMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberbrkl:CommercialRealEstateMultiFamilyReceivableMemberbrkl:FinancingReceivables31to60DaysPastDueMember2019-09-300001049782brkl:FinancingReceivables31to60DaysPastDueMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMemberbrkl:CommercialLoansEquipmentFinancingLoansMemberbrkl:FinancingReceivables31to60DaysPastDueMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberbrkl:CommercialRealEstateMortgageMemberbrkl:FinancingReceivables31to60DaysPastDueMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMemberbrkl:FinancingReceivablesGreaterthan90DaysPastDueMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMemberbrkl:CommercialLoansEquipmentFinancingLoansMemberbrkl:FinancingReceivablesGreaterthan90DaysPastDueMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberbrkl:FinancingReceivables31to60DaysPastDueMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberbrkl:OtherConsumerMemberbrkl:FinancingReceivables61to90DaysPastDueMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:CommercialLoanMemberbrkl:FinancingReceivables31to60DaysPastDueMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberbrkl:CommercialRealEstateMortgageMemberbrkl:FinancingReceivablesGreaterthan90DaysPastDueMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:ConstructionLoansMemberbrkl:FinancingReceivables31to60DaysPastDueMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberbrkl:FinancingReceivables61to90DaysPastDueMember2019-09-300001049782brkl:AcquiredFinancingReceivableMemberus-gaap:ConsumerPortfolioSegmentMemberbrkl:OtherConsumerMemberbrkl:FinancingReceivablesGreaterthan90DaysPastDueMember2019-09-300001049782us-gaap:CoreDepositsMember2019-01-012019-09-300001049782us-gaap:TradeNamesMember2013-12-310001049782us-gaap:TradeNamesMember2018-12-310001049782us-gaap:CoreDepositsMember2018-12-310001049782us-gaap:TradeNamesMember2019-09-300001049782us-gaap:CoreDepositsMember2019-09-300001049782us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2019-01-012019-09-300001049782us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2019-09-300001049782us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2019-01-012019-09-300001049782us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2019-09-300001049782us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2018-12-310001049782us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2018-12-310001049782us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2018-01-012018-09-300001049782us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2018-01-012018-09-300001049782us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2017-12-310001049782us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2018-09-300001049782us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2018-09-300001049782us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2017-12-310001049782us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2018-07-012018-09-300001049782us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2018-06-300001049782us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2018-06-300001049782us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2018-07-012018-09-300001049782us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2019-06-300001049782us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2019-07-012019-09-300001049782us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2019-07-012019-09-300001049782us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2019-06-300001049782brkl:LoanLevelDerivativeMember2018-12-310001049782us-gaap:ForeignExchangeContractMember2018-12-310001049782brkl:RiskParticipationoutAgreementMember2018-12-310001049782brkl:RiskParticipationinAgreementMember2018-12-310001049782us-gaap:ForeignExchangeContractMember2019-09-300001049782brkl:LoanLevelDerivativeMember2019-09-300001049782brkl:RiskParticipationinAgreementMember2019-09-300001049782brkl:RiskParticipationoutAgreementMember2019-09-300001049782brkl:RiskParticipationoutAgreementMemberus-gaap:NondesignatedMember2018-12-310001049782brkl:LoanLevelDerivativePayFixedReceiveVariableMemberus-gaap:NondesignatedMember2018-12-310001049782brkl:LoanLevelDerivativeReceiveFixedPayVariableMemberus-gaap:NondesignatedMember2018-12-310001049782us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMemberus-gaap:LongMember2018-12-310001049782us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMemberus-gaap:ShortMember2018-12-310001049782brkl:RiskParticipationinAgreementMemberus-gaap:NondesignatedMember2018-12-310001049782us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMemberus-gaap:ShortMember2019-09-300001049782brkl:LoanLevelDerivativeReceiveFixedPayVariableMemberus-gaap:NondesignatedMember2019-09-300001049782brkl:RiskParticipationinAgreementMemberus-gaap:NondesignatedMember2019-09-300001049782us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMemberus-gaap:LongMember2019-09-300001049782brkl:RiskParticipationoutAgreementMemberus-gaap:NondesignatedMember2019-09-300001049782brkl:LoanLevelDerivativePayFixedReceiveVariableMemberus-gaap:NondesignatedMember2019-09-300001049782brkl:SharebasedCompensationPlans200320112014Member2019-09-300001049782brkl:SharebasedCompensationPlans200320112014Member2019-01-012019-09-300001049782brkl:RestrictedStockPlan2011Member2019-09-300001049782us-gaap:PerformanceSharesMember2019-09-300001049782brkl:TimebasedAwardsMemberus-gaap:ShareBasedCompensationAwardTrancheOneMember2019-01-012019-09-300001049782us-gaap:PerformanceSharesMemberus-gaap:ShareBasedCompensationAwardTrancheTwoMember2019-01-012019-09-300001049782brkl:SharebasedCompensationPlans200320112014Member2019-07-012019-09-300001049782brkl:SharebasedCompensationPlans200320112014Member2018-07-012018-09-300001049782brkl:SharebasedCompensationPlans200320112014Member2018-01-012018-09-300001049782brkl:TimebasedAwardsMemberbrkl:VestingFirstAnniversaryMember2019-01-012019-09-300001049782brkl:TimebasedAwardsMemberbrkl:VestingThirdAnniversaryMember2019-01-012019-09-300001049782brkl:TimebasedAwardsMemberbrkl:VestingSecondAnniversaryMember2019-01-012019-09-300001049782us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2019-09-300001049782brkl:RepossessedVehiclesAndEquipmentMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2019-09-300001049782us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMember2019-09-300001049782brkl:CollateralDependentImpairedLoansMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsNonrecurringMember2019-09-300001049782us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsNonrecurringMember2019-09-300001049782brkl:OtherRealEstateOwnedMemberus-gaap:FairValueMeasurementsNonrecurringMember2019-09-300001049782brkl:CollateralDependentImpairedLoansMemberus-gaap:FairValueMeasurementsNonrecurringMember2019-09-300001049782brkl:OtherRealEstateOwnedMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2019-09-300001049782brkl:OtherRealEstateOwnedMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMember2019-09-300001049782brkl:CollateralDependentImpairedLoansMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMember2019-09-300001049782us-gaap:FairValueMeasurementsNonrecurringMember2019-09-300001049782brkl:RepossessedVehiclesAndEquipmentMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsNonrecurringMember2019-09-300001049782brkl:CollateralDependentImpairedLoansMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2019-09-300001049782brkl:RepossessedVehiclesAndEquipmentMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMember2019-09-300001049782brkl:RepossessedVehiclesAndEquipmentMemberus-gaap:FairValueMeasurementsNonrecurringMember2019-09-300001049782brkl:OtherRealEstateOwnedMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsNonrecurringMember2019-09-300001049782brkl:OtherRealEstateOwnedMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:MarketApproachValuationTechniqueMember2019-09-300001049782us-gaap:AuctionRateSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2018-12-310001049782us-gaap:AuctionRateSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2019-09-300001049782brkl:OtherRealEstateOwnedMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:MarketApproachValuationTechniqueMember2018-12-310001049782brkl:ImpairedLoansMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:MarketApproachValuationTechniqueMember2019-09-300001049782brkl:ImpairedLoansMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:MarketApproachValuationTechniqueMember2018-12-310001049782us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2019-09-300001049782us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2019-09-300001049782us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2019-09-300001049782us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2019-09-300001049782us-gaap:USTreasuryAndGovernmentMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2019-09-300001049782brkl:RiskParticipationoutAgreementMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2019-09-300001049782brkl:LoanLevelDerivativeMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2019-09-300001049782brkl:LoanLevelDerivativeMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2019-09-300001049782us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2019-09-300001049782us-gaap:USTreasuryAndGovernmentMemberus-gaap:FairValueMeasurementsRecurringMember2019-09-300001049782us-gaap:AvailableforsaleSecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2019-09-300001049782brkl:LoanLevelDerivativeMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2019-09-300001049782us-gaap:ForeignExchangeContractMemberus-gaap:FairValueMeasurementsRecurringMember2019-09-300001049782us-gaap:FairValueMeasurementsRecurringMember2019-09-300001049782us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2019-09-300001049782brkl:LoanLevelDerivativeMemberus-gaap:FairValueMeasurementsRecurringMember2019-09-300001049782brkl:RiskParticipationinAgreementMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2019-09-300001049782us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2019-09-300001049782brkl:RiskParticipationoutAgreementMemberus-gaap:FairValueMeasurementsRecurringMember2019-09-300001049782us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2019-09-300001049782us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2019-09-300001049782brkl:RiskParticipationoutAgreementMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2019-09-300001049782us-gaap:AvailableforsaleSecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2019-09-300001049782us-gaap:AvailableforsaleSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2019-09-300001049782us-gaap:USTreasuryAndGovernmentMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2019-09-300001049782us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueMeasurementsRecurringMember2019-09-300001049782brkl:RiskParticipationinAgreementMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2019-09-300001049782brkl:CollateralizedMortgageObligationsIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2019-09-300001049782us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2019-09-300001049782us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2019-09-300001049782us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2019-09-300001049782us-gaap:AvailableforsaleSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2019-09-300001049782brkl:CollateralizedMortgageObligationsIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2019-09-300001049782us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2019-09-300001049782brkl:SBACommercialLoanAssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2019-09-300001049782brkl:SBACommercialLoanAssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2019-09-300001049782us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2019-09-300001049782brkl:RiskParticipationinAgreementMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2019-09-300001049782brkl:SBACommercialLoanAssetBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2019-09-300001049782brkl:RiskParticipationoutAgreementMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2019-09-300001049782us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2019-09-300001049782us-gaap:USTreasuryAndGovernmentMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2019-09-300001049782brkl:SBACommercialLoanAssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2019-09-300001049782brkl:CollateralizedMortgageObligationsIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueMeasurementsRecurringMember2019-09-300001049782us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2019-09-300001049782brkl:RiskParticipationinAgreementMemberus-gaap:FairValueMeasurementsRecurringMember2019-09-300001049782us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2019-09-300001049782brkl:CollateralizedMortgageObligationsIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2019-09-300001049782srt:MaximumMemberus-gaap:FairValueInputsLevel3Memberbrkl:DiscountforCoststoSellMember2019-01-012019-09-300001049782srt:MinimumMemberus-gaap:FairValueInputsLevel3Memberbrkl:DiscountforCoststoSellMember2019-01-012019-09-300001049782srt:MinimumMemberus-gaap:FairValueInputsLevel3Memberbrkl:AppraisalAdjustmentsMember2019-01-012019-09-300001049782srt:MaximumMemberus-gaap:FairValueInputsLevel3Memberbrkl:AppraisalAdjustmentsMember2019-01-012019-09-300001049782brkl:CollateralDependentImpairedLoansMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMember2018-12-310001049782us-gaap:FairValueMeasurementsNonrecurringMember2018-12-310001049782brkl:OtherRealEstateOwnedMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsNonrecurringMember2018-12-310001049782brkl:RepossessedVehiclesAndEquipmentMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2018-12-310001049782us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2018-12-310001049782brkl:RepossessedVehiclesAndEquipmentMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMember2018-12-310001049782brkl:CollateralDependentImpairedLoansMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsNonrecurringMember2018-12-310001049782brkl:CollateralDependentImpairedLoansMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2018-12-310001049782brkl:RepossessedVehiclesAndEquipmentMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsNonrecurringMember2018-12-310001049782brkl:OtherRealEstateOwnedMemberus-gaap:FairValueMeasurementsNonrecurringMember2018-12-310001049782brkl:RepossessedVehiclesAndEquipmentMemberus-gaap:FairValueMeasurementsNonrecurringMember2018-12-310001049782us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMember2018-12-310001049782brkl:CollateralDependentImpairedLoansMemberus-gaap:FairValueMeasurementsNonrecurringMember2018-12-310001049782us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsNonrecurringMember2018-12-310001049782brkl:OtherRealEstateOwnedMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMember2018-12-310001049782brkl:OtherRealEstateOwnedMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2018-12-310001049782us-gaap:EstimateOfFairValueFairValueDisclosureMember2019-09-300001049782us-gaap:FairValueInputsLevel1Member2019-09-300001049782us-gaap:FairValueInputsLevel2Memberus-gaap:MunicipalBondsMember2019-09-300001049782us-gaap:FairValueInputsLevel2Member2019-09-300001049782us-gaap:CarryingReportedAmountFairValueDisclosureMember2019-09-300001049782us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:ForeignGovernmentDebtSecuritiesMember2019-09-300001049782us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:ForeignGovernmentDebtSecuritiesMember2019-09-300001049782us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:MunicipalBondsMember2019-09-300001049782us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2019-09-300001049782us-gaap:FairValueInputsLevel3Memberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2019-09-300001049782us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:USTreasuryAndGovernmentMember2019-09-300001049782us-gaap:FairValueInputsLevel3Member2019-09-300001049782us-gaap:FairValueInputsLevel1Memberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2019-09-300001049782us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:MunicipalBondsMember2019-09-300001049782us-gaap:FairValueInputsLevel3Memberus-gaap:ForeignGovernmentDebtSecuritiesMember2019-09-300001049782us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:USTreasuryAndGovernmentMember2019-09-300001049782us-gaap:FairValueInputsLevel1Memberus-gaap:ForeignGovernmentDebtSecuritiesMember2019-09-300001049782us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2019-09-300001049782us-gaap:FairValueInputsLevel3Memberus-gaap:USTreasuryAndGovernmentMember2019-09-300001049782us-gaap:FairValueInputsLevel2Memberus-gaap:USTreasuryAndGovernmentMember2019-09-300001049782us-gaap:FairValueInputsLevel1Memberus-gaap:MunicipalBondsMember2019-09-300001049782us-gaap:FairValueInputsLevel1Memberus-gaap:USTreasuryAndGovernmentMember2019-09-300001049782us-gaap:FairValueInputsLevel2Memberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2019-09-300001049782us-gaap:FairValueInputsLevel2Memberus-gaap:ForeignGovernmentDebtSecuritiesMember2019-09-300001049782us-gaap:FairValueInputsLevel3Memberus-gaap:MunicipalBondsMember2019-09-300001049782us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:ForeignGovernmentDebtSecuritiesMember2018-12-310001049782us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2018-12-310001049782us-gaap:FairValueInputsLevel3Memberus-gaap:ForeignGovernmentDebtSecuritiesMember2018-12-310001049782us-gaap:EstimateOfFairValueFairValueDisclosureMember2018-12-310001049782us-gaap:FairValueInputsLevel3Member2018-12-310001049782us-gaap:FairValueInputsLevel2Member2018-12-310001049782us-gaap:FairValueInputsLevel1Member2018-12-310001049782us-gaap:FairValueInputsLevel3Memberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2018-12-310001049782us-gaap:FairValueInputsLevel2Memberus-gaap:USTreasuryAndGovernmentMember2018-12-310001049782us-gaap:CarryingReportedAmountFairValueDisclosureMember2018-12-310001049782us-gaap:FairValueInputsLevel1Memberus-gaap:USTreasuryAndGovernmentMember2018-12-310001049782us-gaap:FairValueInputsLevel2Memberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2018-12-310001049782us-gaap:FairValueInputsLevel1Memberus-gaap:ForeignGovernmentDebtSecuritiesMember2018-12-310001049782us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:MunicipalBondsMember2018-12-310001049782us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:USTreasuryAndGovernmentMember2018-12-310001049782us-gaap:FairValueInputsLevel2Memberus-gaap:MunicipalBondsMember2018-12-310001049782us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:MunicipalBondsMember2018-12-310001049782us-gaap:FairValueInputsLevel1Memberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2018-12-310001049782us-gaap:FairValueInputsLevel2Memberus-gaap:ForeignGovernmentDebtSecuritiesMember2018-12-310001049782us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2018-12-310001049782us-gaap:FairValueInputsLevel3Memberus-gaap:MunicipalBondsMember2018-12-310001049782us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:ForeignGovernmentDebtSecuritiesMember2018-12-310001049782us-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:USTreasuryAndGovernmentMember2018-12-310001049782us-gaap:FairValueInputsLevel1Memberus-gaap:MunicipalBondsMember2018-12-310001049782us-gaap:FairValueInputsLevel3Memberus-gaap:USTreasuryAndGovernmentMember2018-12-310001049782us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2018-12-310001049782brkl:RiskParticipationoutAgreementMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2018-12-310001049782us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2018-12-310001049782brkl:CollateralizedMortgageObligationsIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2018-12-310001049782brkl:SBACommercialLoanAssetBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2018-12-310001049782us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueMeasurementsRecurringMember2018-12-310001049782us-gaap:ForeignExchangeContractMemberus-gaap:FairValueMeasurementsRecurringMember2018-12-310001049782brkl:RiskParticipationoutAgreementMemberus-gaap:FairValueMeasurementsRecurringMember2018-12-310001049782us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2018-12-310001049782us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2018-12-310001049782us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2018-12-310001049782us-gaap:AvailableforsaleSecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2018-12-310001049782us-gaap:USTreasuryAndGovernmentMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2018-12-310001049782brkl:RiskParticipationinAgreementMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2018-12-310001049782us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2018-12-310001049782brkl:RiskParticipationinAgreementMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2018-12-310001049782us-gaap:AvailableforsaleSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2018-12-310001049782us-gaap:USTreasuryAndGovernmentMemberus-gaap:FairValueMeasurementsRecurringMember2018-12-310001049782us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2018-12-310001049782us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2018-12-310001049782us-gaap:AvailableforsaleSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2018-12-310001049782brkl:LoanLevelDerivativeMemberus-gaap:FairValueMeasurementsRecurringMember2018-12-310001049782us-gaap:AvailableforsaleSecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2018-12-310001049782brkl:LoanLevelDerivativeMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2018-12-310001049782us-gaap:USTreasuryAndGovernmentMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2018-12-310001049782brkl:LoanLevelDerivativeMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2018-12-310001049782brkl:RiskParticipationinAgreementMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2018-12-310001049782brkl:CollateralizedMortgageObligationsIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2018-12-310001049782us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2018-12-310001049782brkl:SBACommercialLoanAssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2018-12-310001049782brkl:RiskParticipationoutAgreementMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2018-12-310001049782us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2018-12-310001049782us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2018-12-310001049782us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2018-12-310001049782us-gaap:FairValueMeasurementsRecurringMember2018-12-310001049782brkl:SBACommercialLoanAssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2018-12-310001049782brkl:RiskParticipationoutAgreementMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2018-12-310001049782brkl:RiskParticipationinAgreementMemberus-gaap:FairValueMeasurementsRecurringMember2018-12-310001049782us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2018-12-310001049782brkl:SBACommercialLoanAssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2018-12-310001049782brkl:LoanLevelDerivativeMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2018-12-310001049782us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2018-12-310001049782us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2018-12-310001049782us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2018-12-310001049782us-gaap:USTreasuryAndGovernmentMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2018-12-310001049782brkl:CollateralizedMortgageObligationsIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueMeasurementsRecurringMember2018-12-310001049782us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2018-12-310001049782brkl:CollateralizedMortgageObligationsIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2018-12-310001049782brkl:LoanLevelDerivativeReceiveFixedPayVariableMember2019-09-300001049782us-gaap:CommercialRealEstateMember2018-12-310001049782brkl:LoanLevelDerivativePayFixedReceiveVariableMember2019-09-300001049782us-gaap:CommercialLoanMember2019-09-300001049782brkl:LoanLevelDerivativeReceiveFixedPayVariableMember2018-12-310001049782us-gaap:ResidentialMortgageMember2018-12-310001049782brkl:LoanLevelDerivativePayFixedReceiveVariableMember2018-12-310001049782us-gaap:CommercialLoanMember2018-12-310001049782us-gaap:CommercialRealEstateMember2019-09-300001049782us-gaap:ForeignExchangeContractMemberus-gaap:ShortMember2018-12-310001049782us-gaap:ResidentialMortgageMember2019-09-300001049782us-gaap:ForeignExchangeContractMemberus-gaap:ShortMember2019-09-300001049782us-gaap:ForeignExchangeContractMemberus-gaap:LongMember2018-12-310001049782us-gaap:ForeignExchangeContractMemberus-gaap:LongMember2019-09-300001049782srt:MaximumMember2019-09-300001049782srt:MinimumMember2019-09-30brkl:securitybrkl:bankxbrli:pureiso4217:USDxbrli:sharesxbrli:sharesiso4217:USDbrkl:officebrkl:loanbrkl:financial_institutionbrkl:classbrkl:planbrkl:derivative
 
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 10-Q

(Mark One) 
☒
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2019

OR

☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from           N/A           to                                 .
 
Commission file number 0-23695

BROOKLINE BANCORP INC.
(Exact name of registrant as specified in its charter)
Delaware
 
 
04-3402944

(State or other jurisdiction of
incorporation or organization)
 
 
(I.R.S. Employer Identification No.)
 
 
 
 
 
 
131 Clarendon Street
Boston
MA
02116

(Address of principal executive offices)
 
 
(Zip Code)
 
(617) 425-4600
(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.  Yes  ☒  No  ☐
 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes  ☒  No  ☐
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12-b-2 of the Exchange Act.
Large accelerated filer
 
☒
 
Accelerated filer
 
☐
 
 
 
 
 
 
 
Non-accelerated filer
 
☐ (Do not check if a smaller reporting company)
 
Smaller Reporting Company
 
☐
 
 
 
 
 
 
 
 
 
 
 
Emerging growth company
 
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes   ☐  No  ☒   
 


Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock
BRKL
Nasdaq Global Select Market
                                                                                                                                                         
At October 31, 2019, the number of shares of common stock, par value $0.01 per share, outstanding was 79,767,595.
 


BROOKLINE BANCORP, INC. AND SUBSIDIARIES
FORM 10-Q
Table of Contents
 
 
Page
Part I
Financial Information
 
 
 
 
Item 1.
Unaudited Consolidated Financial Statements
 
 
 
 
 
Unaudited Consolidated Balance Sheets at September 30, 2019 and December 31, 2018
1
 
 
 
 
Unaudited Consolidated Statements of Income for the Three Months and Nine Months Ended September 30, 2019 and 2018
2
 
 
 
 
Unaudited Consolidated Statements of Comprehensive Income for the Three Months and Nine Months Ended September 30, 2019 and 2018
3
 
 
 
 
Unaudited Consolidated Statements of Changes in Equity for the Three and Nine Months Ended September 30, 2019 and 2018
4
 
 
 
 
Unaudited Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2019 and 2018
6
 
 
 
 
Notes to Unaudited Consolidated Financial Statements
8
 
 
 
Item 2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
55
 
 
 
Item 3.
Quantitative and Qualitative Disclosures About Market Risk
95
 
 
 
Item 4.
Controls and Procedures
98
 
 
 
Part II
Other Information
 
 
 
 
Item 1.
Legal Proceedings
99
 
 
 
Item 1A.
Risk Factors
99
 
 
 
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
99
 
 
 
Item 3.
Defaults Upon Senior Securities
99
 
 
 
Item 4.
Mine Safety Disclosures
99
 
 
 
Item 5.
Other Information
99
 
 
 
Item 6.
Exhibits
99
 
 
 
 
Signatures
100


PART I — FINANCIAL INFORMATION
Item 1. Unaudited Consolidated Financial Statements
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Unaudited Consolidated Balance Sheets
 
At September 30, 2019
 
At December 31, 2018
 
(In Thousands Except Share Data)
ASSETS
 
 
 
Cash and due from banks
$
93,841

 
$
47,542

Short-term investments
84,689

 
42,042

Total cash and cash equivalents
178,530

 
89,584

Investment securities available-for-sale
467,339

 
502,793

Investment securities held-to-maturity (fair value of $95,802 and $112,830, respectively)
95,163

 
114,776

Equity securities held-for-trading
4,581

 
4,207

Total investment securities
567,083

 
621,776

Loans held-for-sale
—

 
3,247

Loans and leases:
 
 
 
Commercial real estate loans
3,589,451

 
3,351,736

Commercial loans and leases
1,850,388

 
1,768,958

Consumer loans
1,206,982

 
1,182,822

Total loans and leases
6,646,821

 
6,303,516

Allowance for loan and lease losses
(59,135
)
 
(58,692
)
Net loans and leases
6,587,686

 
6,244,824

Restricted equity securities
57,896

 
61,751

Premises and equipment, net of accumulated depreciation of $75,154 and $70,140, respectively
75,229

 
76,382

Right-of-use asset operating leases
26,216

 
—

Deferred tax asset
25,204

 
21,495

Goodwill
160,427

 
160,427

Identified intangible assets, net of accumulated amortization of $37,061 and $35,818, respectively
4,843

 
6,086

Other real estate owned ("OREO") and repossessed assets, net
2,132

 
4,019

Other assets
193,190

 
103,214

Total assets
$
7,878,436

 
$
7,392,805

LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
Deposits:
 
 
 
Demand checking accounts
$
1,106,684

 
$
1,033,551

Interest-bearing deposits:
 
 
 
NOW accounts
340,321

 
336,317

Savings accounts
604,481

 
619,961

Money market accounts
1,666,231

 
1,675,050

Certificate of deposit accounts
2,011,622

 
1,789,165

Total interest-bearing deposits
4,622,655

 
4,420,493

Total deposits
5,729,339

 
5,454,044

Borrowed funds:
 
 
 
Advances from the Federal Home Loan Bank of Boston ("FHLBB")
854,481

 
784,375

Subordinated debentures and notes
83,551

 
83,433

Other borrowed funds
48,373

 
52,734

Total borrowed funds
986,405

 
920,542

Operating lease liabilities
26,216

 
—

Mortgagors' escrow accounts
7,072

 
7,426

Accrued expenses and other liabilities
197,093

 
100,174

Total liabilities
6,946,125

 
6,482,186

 
 
 
 
Commitments and contingencies (Note 12)

 

Stockholders' Equity:
 
 
 
Brookline Bancorp, Inc. stockholders' equity:
 
 
 
Common stock, $0.01 par value; 200,000,000 shares authorized; 85,177,172 shares issued and 85,177,172 shares issued, respectively
852

 
852

Additional paid-in capital
735,928

 
755,629

Retained earnings, partially restricted
252,435

 
212,838

Accumulated other comprehensive loss
2,775

 
(9,460
)
Treasury stock, at cost; 5,003,127 shares and 5,020,025 shares, respectively
(59,176
)
 
(59,120
)
Unallocated common stock held by Employee Stock Ownership Plan ("ESOP"); 92,337 shares and 109,950 shares, respectively
(503
)
 
(599
)
Total Brookline Bancorp, Inc. stockholders' equity
932,311

 
900,140

Noncontrolling interest in subsidiary
—

 
10,479

Total stockholders' equity
932,311

 
910,619

Total liabilities and stockholders' equity
$
7,878,436

 
$
7,392,805


See accompanying notes to unaudited consolidated financial statements.
1

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Unaudited Consolidated Statements of Income
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
 
(In Thousands Except Share Data)
Interest and dividend income:
 
 
 
 
 
 
 
Loans and leases
$
83,566

 
$
75,877

 
$
247,036

 
$
216,478

Debt securities
2,977

 
3,585

 
9,371

 
10,471

Marketable and restricted equity securities
876

 
1,029

 
2,664

 
2,956

Short-term investments
487

 
145

 
1,105

 
444

Total interest and dividend income
87,906

 
80,636

 
260,176

 
230,349

Interest expense:
 
 
 
 
 
 
 
Deposits
18,300

 
11,916

 
51,960

 
28,234

Borrowed funds
6,370

 
6,388

 
18,847

 
17,575

Total interest expense
24,670

 
18,304

 
70,807

 
45,809

Net interest income
63,236

 
62,332

 
189,369

 
184,540

Provision for credit losses
871

 
2,717

 
5,981

 
4,828

Net interest income after provision for credit losses
62,365

 
59,615

 
183,388

 
179,712

Non-interest income:
 
 
 
 
 
 
 
Deposit fees
2,710

 
2,648

 
7,913

 
7,731

Loan fees
719

 
417

 
1,530

 
1,037

Loan level derivative income, net
2,251

 
2,192

 
5,768

 
3,629

(Loss) gain on investment securities, net
(116
)
 
—

 
375

 
1,162

Gain on sales of loans and leases held-for-sale
550

 
535

 
1,400

 
1,556

Other
1,815

 
1,277

 
5,051

 
3,648

Total non-interest income
7,929

 
7,069

 
22,037

 
18,763

Non-interest expense:
 
 
 
 
 
 
 
Compensation and employee benefits
24,871

 
22,338

 
72,567

 
67,217

Occupancy
3,895

 
3,913

 
11,594

 
11,751

Equipment and data processing
4,749

 
4,601

 
14,051

 
13,587

Professional services
1,083

 
1,075

 
3,246

 
3,274

FDIC insurance
54

 
846

 
1,392

 
1,995

Advertising and marketing
1,035

 
1,068

 
3,216

 
3,243

Amortization of identified intangible assets
421

 
537

 
1,243

 
1,543

Merger and restructuring expense
1,125

 
22

 
1,125

 
3,261

Other
2,958

 
2,910

 
10,232

 
9,079

Total non-interest expense
40,191

 
37,310

 
118,666

 
114,950

Income before provision for income taxes
30,103

 
29,374

 
86,759

 
83,525

Provision for income taxes
7,507

 
6,140

 
21,182

 
19,134

Net income before noncontrolling interest in subsidiary
22,596

 
23,234

 
65,577

 
64,391

Less: net income attributable to noncontrolling interest in subsidiary
—

 
774

 
43

 
2,467

Net income attributable to Brookline Bancorp, Inc.
$
22,596

 
$
22,460

 
$
65,534

 
$
61,924

Earnings per common share:
 
 
 
 
 
 
 
Basic
$
0.28

 
$
0.28

 
$
0.82

 
$
0.78

Diluted
0.28

 
0.28

 
0.82

 
0.78

Weighted average common shares outstanding during the year:
 
 
 
 
 
 
 
Basic
79,700,403

 
80,315,050

 
79,676,456

 
79,471,238

Diluted
79,883,510

 
80,515,467

 
79,867,683

 
79,740,992

Dividends paid per common share
$
0.110

 
$
0.100

 
$
0.325

 
$
0.290




See accompanying notes to unaudited consolidated financial statements.
2

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Unaudited Consolidated Statements of Comprehensive Income
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
 
(In Thousands)
Net income before noncontrolling interest in subsidiary
$
22,596

 
$
23,234

 
$
65,577

 
$
64,391

 
 
 
 
 
 
 
 
Investment securities available-for-sale:
 
 
 
 
 
 
 
Unrealized securities holding gains (losses)
2,098

 
(2,803
)
 
15,696

 
(12,449
)
Income tax (expense) benefit
(464
)
 
619

 
(3,461
)
 
2,747

Net unrealized securities holding gains (losses) before reclassification adjustments, net of taxes
1,634

 
(2,184
)
 
12,235

 
(9,702
)
Less reclassification adjustments for securities gains included in net income:
 
 
 
 
 
 
 
Loss on sales of securities, net
—

 
—

 
—

 
(68
)
Income tax benefit
—

 
—

 
—

 
15

Net reclassification adjustments for securities gains included in net income
—

 
—

 
—

 
(53
)
Net unrealized securities holding gains (losses)
1,634

 
(2,184
)
 
12,235

 
(9,649
)
 
 
 
 
 
 
 
 
Comprehensive income
24,230

 
21,050

 
77,812

 
54,742

Less: Net income attributable to noncontrolling interest in subsidiary
—

 
774

 
43

 
2,467

Comprehensive income attributable to Brookline Bancorp, Inc.
$
24,230

 
$
20,276

 
$
77,769

 
$
52,275




See accompanying notes to unaudited consolidated financial statements.
3

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Unaudited Consolidated Statements of Changes in Stockholders' Equity
Nine Months Ended September 30, 2019 and 2018
 
Common
Stock
 
Additional
Paid-in
Capital
 
Retained
Earnings
 
Accumulated
Other
Comprehensive
(Loss) Income
 
Treasury
Stock
 
Unallocated
Common Stock
Held by ESOP
 
Total Brookline
Bancorp, Inc.
Stockholders'
Equity
 
Noncontrolling
Interest in
Subsidiary
 
Total Stockholders'
Equity
 
(In Thousands)
Balance at December 31, 2018
$
852

 
$
755,629

 
$
212,838

 
$
(9,460
)
 
$
(59,120
)
 
$
(599
)
 
$
900,140

 
$
10,479

 
$
910,619

Net income attributable to Brookline Bancorp, Inc. 
—

 
—

 
65,534

 
—

 
—

 
—

 
65,534

 
—

 
65,534

Net income attributable to noncontrolling interest in subsidiary
—

 
—

 
—

 
—

 
—

 
—

 
—

 
43

 
43

Other comprehensive income
—

 
—

 
—

 
12,235

 
—

 
—

 
12,235

 
—

 
12,235

Common stock dividends of $0.325 per share
—

 
—

 
(25,937
)
 
—

 
—

 
—

 
(25,937
)
 
—

 
(25,937
)
Dividend distribution to owners of noncontrolling interest in subsidiary
—

 
(930
)
 
—

 
—

 
—

 
—

 
(930
)
 
—

 
(930
)
Redemption of noncontrolling interest in subsidiary
—

 
(18,697
)
 
—

 
—

 
—

 
—

 
(18,697
)
 
(10,522
)
 
(29,219
)
Restricted stock awards issued, net of awards surrendered
—

 
(239
)
 
—

 
—

 
1,814

 
—

 
1,575

 
—

 
1,575

Treasury stock, repurchase shares
—

 
—

 
—

 
—

 
(1,870
)
 
—

 
(1,870
)
 
—

 
(1,870
)
Common stock held by ESOP committed to be released (17,613 shares)
—

 
165

 
—

 
—

 
—

 
96

 
261

 
—

 
261

Balance at September 30, 2019
$
852

 
$
735,928

 
$
252,435

 
$
2,775

 
$
(59,176
)
 
$
(503
)
 
$
932,311

 
$
—

 
$
932,311



 
Common
Stock
 
Additional
Paid-in
Capital
 
Retained
Earnings
 
Accumulated
Other
Comprehensive
(Loss) Income
 
Treasury
Stock
 
Unallocated
Common Stock
Held by ESOP
 
Total Brookline
Bancorp, Inc.
Stockholders'
Equity
 
Noncontrolling
Interest in
Subsidiary
 
Total Stockholders'
Equity
 
(In Thousands)
Balance at December 31, 2017
$
817

 
$
699,976

 
$
161,217

 
$
(5,950
)
 
$
(51,454
)
 
$
(776
)
 
$
803,830

 
$
8,753

 
$
812,583

Net income attributable to Brookline Bancorp, Inc. 
—

 
—

 
61,924

 
—

 
—

 
—

 
61,924

 
—

 
61,924

Net income attributable to noncontrolling interest in subsidiary
—

 
—

 
—

 
—

 
—

 
—

 
—

 
2,467

 
2,467

Common stock issued for acquisition
35

 
55,148

 
—

 
—

 
—

 
—

 
55,183

 
—

 
55,183

Issuance of noncontrolling interest
—

 
—

 
—

 
—

 
—

 
—

 
—

 
130

 
130

Other comprehensive income
—

 
—

 
—

 
(9,649
)
 
—

 
—

 
(9,649
)
 
—

 
(9,649
)
Common stock dividends of $0.29 per share
—

 
—

 
(22,990
)
 
—

 
—

 
—

 
(22,990
)
 
—

 
(22,990
)
Dividend distribution to owners of noncontrolling interest in subsidiary
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(1,893
)
 
(1,893
)
Restricted stock awards issued, net of awards surrendered
—

 
(1,472
)
 
—

 
—

 
3,120

 
—

 
1,648

 
—

 
1,648

Common stock held by ESOP committed to be released (24,282 shares)
—

 
289

 
—

 
—

 
—

 
133

 
422

 
—

 
422

Balance at September 30, 2018
$
852

 
$
753,941

 
$
200,151

 
$
(15,599
)
 
$
(48,334
)
 
$
(643
)
 
$
890,368

 
$
9,457

 
$
899,825



See accompanying notes to unaudited consolidated financial statements.
4

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Unaudited Consolidated Statements of Changes in Stockholders' Equity
Three Months Ended September 30, 2019 and 2018
 
Common
Stock
 
Additional
Paid-in
Capital
 
Retained
Earnings
 
Accumulated
Other
Comprehensive
(Loss) Income
 
Treasury
Stock
 
Unallocated
Common Stock
Held by ESOP
 
Total Brookline
Bancorp, Inc.
Stockholders'
Equity
 
Noncontrolling
Interest in
Subsidiary
 
Total Stockholders'
Equity
 
(In Thousands)
Balance at June 30, 2019
$
852

 
$
737,584

 
$
238,625

 
$
1,141

 
$
(59,199
)
 
$
(535
)
 
$
918,468

 
$
—

 
$
918,468

Net income attributable to Brookline Bancorp, Inc. 
—

 
—

 
22,596

 
—

 
—

 
—

 
22,596

 
—

 
22,596

Other comprehensive income
—

 
—

 
—

 
1,634

 
—

 
—

 
1,634

 
—

 
1,634

Common stock dividends of $0.11 per share
—

 
—

 
(8,786
)
 
—

 
—

 
—

 
(8,786
)
 
—

 
(8,786
)
Dividend distribution to owners of noncontrolling interest in subsidiary
—

 
(1
)
 
—

 
—

 
—

 
—

 
(1
)
 
—

 
(1
)
Redemption of noncontrolling interest in subsidiary
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Restricted stock awards issued, net of awards surrendered
—

 
(1,708
)
 
—

 
—

 
1,893

 
—

 
185

 
—

 
185

Treasury stock, repurchase shares
—

 
—

 
—

 
—

 
(1,870
)
 
—

 
(1,870
)
 
—

 
(1,870
)
Common stock held by ESOP committed to be released (5,871 shares)
—

 
53

 
—

 
—

 
—

 
32

 
85

 
—

 
85

Balance at September 30, 2019
$
852

 
$
735,928

 
$
252,435

 
$
2,775

 
$
(59,176
)
 
$
(503
)
 
$
932,311

 
$
—

 
$
932,311


 
Common
Stock
 
Additional
Paid-in
Capital
 
Retained
Earnings
 
Accumulated
Other
Comprehensive
(Loss) Income
 
Treasury
Stock
 
Unallocated
Common Stock
Held by ESOP
 
Total Brookline
Bancorp, Inc.
Stockholders'
Equity
 
Noncontrolling
Interest in
Subsidiary
 
Total Stockholders'
Equity
 
(In Thousands)
Balance at June 30, 2018
$
852

 
$
756,254

 
$
185,734

 
$
(13,415
)
 
$
(51,454
)
 
$
(688
)
 
$
877,283

 
$
9,085

 
$
886,368

Net income attributable to Brookline Bancorp, Inc. 
—

 
—

 
22,460

 
—

 
—

 
—

 
22,460

 
—

 
22,460

Net income attributable to noncontrolling interest in subsidiary
—

 
—

 
—

 
—

 
—

 
—

 
—

 
774

 
774

Common stock issued for acquisition
—

 
2

 
—

 
—

 
—

 
—

 
2

 
—

 
2

Issuance of noncontrolling interest
—

 
—

 
—

 
—

 
—

 
—

 
—

 
1

 
1

Other comprehensive income
—

 
—

 
—

 
(2,184
)
 
—

 
—

 
(2,184
)
 
—

 
(2,184
)
Common stock dividends of $0.10 per share
—

 
—

 
(8,043
)
 
—

 
—

 
—

 
(8,043
)
 
—

 
(8,043
)
Dividend distribution to owners of noncontrolling interest in subsidiary
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(1,893
)
 
(1,893
)
Redemption of noncontrolling interest in subsidiary
—

 
—

 
—

 
—

 
—

 
—

 
—

 
1,490

 
1,490

Compensation under recognition and retention plan
—

 
(2,418
)
 
—

 
—

 
3,120

 
—

 
702

 
—

 
702

Common stock held by ESOP committed to be released (8,094 shares)
—

 
103

 
—

 
—

 
—

 
45

 
148

 
—

 
148

Balance at September 30, 2018
$
852

 
$
753,941

 
$
200,151

 
$
(15,599
)
 
$
(48,334
)
 
$
(643
)
 
$
890,368

 
$
9,457

 
$
899,825




See accompanying notes to unaudited consolidated financial statements.
5

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Unaudited Consolidated Statements of Cash Flows
 
Nine Months Ended September 30,
 
2019
 
2018
 
(In Thousands)
Cash flows from operating activities:
 
 
 
Net income attributable to Brookline Bancorp, Inc.
$
65,534

 
$
61,924

Adjustments to reconcile net income to net cash provided from operating activities:
 
 
 
Net income attributable to noncontrolling interest in subsidiary
43

 
2,467

Provision for credit losses
5,981

 
4,828

Origination of loans and leases held-for-sale
(15,352
)
 
(19,286
)
Proceeds from sales of loans and leases held-for-sale, net
19,741

 
22,418

Deferred income tax benefit
(538
)
 
(4,456
)
Depreciation of premises and equipment
5,252

 
5,594

Amortization of investment securities premiums and discounts, net
1,406

 
1,546

Amortization of deferred loan and lease origination costs, net
5,227

 
5,187

Amortization of identified intangible assets
1,243

 
1,543

Amortization of debt issuance costs
75

 
75

(Accretion) amortization of acquisition fair value adjustments, net
(682
)
 
191

Gain on investment securities, net
(375
)
 
(1,162
)
Gain on sales of loans and leases held-for-sale
(1,400
)
 
(1,556
)
Loss on sales of OREO and other repossessed assets, net
99

 
—

Write-down of OREO and other repossessed assets
466

 
375

Compensation under recognition and retention plans
2,182

 
1,632

ESOP shares committed to be released
261

 
422

Net change in:
 
 
 
Cash surrender value of bank-owned life insurance
(772
)
 
(775
)
Equity securities held-for-trading
—

 
(4,169
)
Other assets
(89,204
)
 
(15,966
)
Accrued expenses and other liabilities
96,368

 
28,223

Net cash provided from operating activities
95,555

 
89,055

 
 
 
 
Cash flows from investing activities:
 
 
 
Proceeds from sales of investment securities available-for-sale
—

 
1,470

Proceeds from maturities, calls, and principal repayments of investment securities available-for-sale
50,147

 
64,161

Purchases of investment securities available-for-sale
—

 
(73,852
)
Proceeds from maturities, calls, and principal repayments of investment securities held to maturity
19,711

 
2,523

Purchases of investment securities held-to-maturity
(500
)
 
(8,915
)
Proceeds from redemption/sales of restricted equity securities
15,469

 
9,128

Purchase of restricted equity securities
(11,614
)
 
(12,492
)
Proceeds from sales of loans and leases held-for-investment, net
8,679

 
4,372

Net increase in loans and leases
(364,936
)
 
(511,212
)
Acquisitions, net of cash and cash equivalents acquired
—

 
(24,659
)
Purchase of premises and equipment, net
(4,222
)
 
(3,320
)
Proceeds from sales of OREO and other repossessed assets
4,105

 
2,001

Net cash used for investing activities
(283,161
)
 
(550,795
)

See accompanying notes to unaudited consolidated financial statements.
6

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Unaudited Consolidated Statements of Cash Flows (Continued)
 
Nine Months Ended September 30,
 
2019
 
2018
 
(In Thousands)
 
 
 
(Continued)

 
 
 
 
Cash flows from financing activities:
 
 
 
Decrease in demand checking, NOW, savings and money market accounts
52,838

 
(88,622
)
Increase in certificates of deposit
222,957

 
450,318

Proceeds from FHLBB advances
3,647,800

 
5,929,608

Repayment of FHLBB advances
(3,577,694
)
 
(5,860,071
)
Increase (decrease) in other borrowed funds, net
(4,361
)
 
(7,591
)
(Decrease) increase in mortgagors' escrow accounts, net
(354
)
 
541

Repurchases of common stock
(1,870
)
 
—

Common stock issued for acquisition
—

 
55,181

Payment of dividends on common stock
(25,937
)
 
(22,990
)
Payment of income taxes for shares withheld in share based activity
(46
)
 
—

Redemption of noncontrolling interest in subsidiary
(35,851
)
 
—

Proceeds from issuance of noncontrolling units
—

 
130

Payment of dividends to owners of noncontrolling interest in subsidiary
(930
)
 
(1,893
)
Net cash provided from financing activities
276,552

 
454,611

Net increase (decrease) in cash and cash equivalents
88,946

 
(7,129
)
Cash and cash equivalents at beginning of period
89,584

 
61,005

Cash and cash equivalents at end of period
$
178,530

 
$
53,876

 
 
 
 
Supplemental disclosure of cash flow information:
 
 
 
Cash paid during the period for:
 
 
 
Interest on deposits, borrowed funds and subordinated debt
$
72,047

 
$
46,133

Income taxes
21,270

 
15,098

Non-cash investing activities:
 
 
 
Transfer from loans to other real estate owned
2,783

 
1,891

Acquisition of First Commons Bank, N.A.:
 
 
 
Fair value of assets acquired, net of cash and cash equivalents acquired
$
—

 
$
292,025

Fair value of liabilities assumed
—

 
278,988




See accompanying notes to unaudited consolidated financial statements.
7

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
(1) Basis of Presentation
Overview
Brookline Bancorp, Inc. (the "Company") is a bank holding company (within the meaning of the Bank Holding Company Act of 1956, as amended) and the parent of Brookline Bank, a Massachusetts-chartered trust company; Bank Rhode Island ("BankRI"), a Rhode Island-chartered financial institution; and First Ipswich Bank ("First Ipswich"), a Massachusetts-chartered trust company (collectively referred to as the "Banks"). The Banks are all members of the Federal Reserve System. The Company is also the parent of Brookline Securities Corp. ("BSC"). The Company's primary business is to provide commercial, business and retail banking services to its corporate, municipal and retail customers through the Banks and its non-bank subsidiaries.
Brookline Bank, which includes its wholly-owned subsidiaries BBS Investment Corp., Longwood Securities Corp. ("LSC") and Eastern Funding LLC ("Eastern Funding"), operates 25 full-service banking offices in the greater Boston metropolitan area with 2 additional lending offices. As of December 31, 2018, Brookline Bank, a wholly-owned subsidiary of the Company, held an 84.07 percent ownership interest its subsidiary, Eastern Funding. As previously announced, on January 4, 2019, Brookline Bank completed the purchase of the remaining 15.93 percent interest in Eastern Funding for a total cash consideration of $35.9 million. BankRI, which includes its wholly-owned subsidiaries, Acorn Insurance Agency, BRI Realty Corp., Macrolease Corporation ("Macrolease"), BRI Investment Corp. and its wholly-owned subsidiary, BRI MSC Corp., operates 20 full-service banking offices in the greater Providence, Rhode Island area. First Ipswich, which includes its wholly-owned subsidiaries First Ipswich Insurance Agency and First Ipswich Securities II Corp., operates 6 full-service banking offices on the north shore of eastern Massachusetts.
The Company's activities include acceptance of commercial, municipal and retail deposits, origination of mortgage loans on commercial and residential real estate located principally in all New England states, origination of commercial loans and leases to small- and mid-sized businesses, investment in debt and equity securities, and the offering of cash management and investment advisory services. The Company also provides specialty equipment financing through its subsidiaries Eastern Funding, which is based in New York City, New York, and Macrolease, which is based in Plainview, New York.
The Company and the Banks are supervised, examined and regulated by the Board of Governors of the Federal Reserve System ("FRB"). As Massachusetts-chartered trust companies, Brookline Bank and First Ipswich are also subject to regulation under the laws of the Commonwealth of Massachusetts and the jurisdiction of the Massachusetts Division of Banks (the "DOB"). As a Rhode Island-chartered financial institution, BankRI is subject to regulation under the laws of the State of Rhode Island and the jurisdiction of the Banking Division of the Rhode Island Department of Business Regulation.
The Federal Deposit Insurance Corporation ("FDIC") offers insurance coverage on all deposits up to $250,000 per depositor at each of the Banks. As FDIC-insured depository institutions, the Banks are also secondarily subject to supervision, examination and regulation by the FDIC. As previously disclosed on a Form 8-K filed with the SEC, on July 31, 2019, Brookline Bank ended its membership in the Depositors Insurance Fund (“DIF”), a private industry-sponsored fund which insures Massachusetts-chartered savings bank deposit balances in excess of federal deposit insurance coverage. Brookline Bank’s growth in deposit size necessitated Brookline Bank’s withdrawal from the DIF and the concurrent charter conversion of Brookline Bank from a Massachusetts-chartered savings bank to a Massachusetts-chartered trust company.
Basis of Financial Statement Presentation
The unaudited consolidated financial statements of the Company presented herein have been prepared pursuant to the rules of the Securities and Exchange Commission (“SEC”) for quarterly reports on Form 10-Q and do not include all of the information and note disclosures required by U.S. generally accepted accounting principles (“GAAP”). In the opinion of management, all adjustments (consisting of normal recurring adjustments) and disclosures considered necessary for the fair presentation of the accompanying consolidated financial statements have been included. Interim results are not necessarily reflective of the results of the entire year. The accompanying unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Annual Report on Form 10-K for the fiscal year ended December 31, 2018. 

The unaudited consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany transactions and balances are eliminated in consolidation.


8
Table of Contents
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements (Continued)

In preparing these consolidated financial statements, Management is required to make significant estimates and assumptions that affect the reported amounts of assets, liabilities, income, expenses and disclosure of contingent assets and liabilities. Actual results could differ from those estimates based upon changing conditions, including economic conditions and future events. Material estimates that are particularly susceptible to significant changes in the near-term include the determination of the allowance for loan and lease losses, the determination of fair market values of assets and liabilities, including acquired loans and leases, the review of goodwill and intangible assets for impairment and the review of deferred tax assets for valuation allowances.
 
The judgments used by Management in applying these critical accounting policies may be affected by a further and prolonged deterioration in the economic environment, which may result in changes to future financial results. For example, subsequent evaluations of the loan and lease portfolio, in light of the factors then prevailing, may result in significant changes in the allowance for loan and lease losses in future periods, and the inability to collect outstanding principal may result in increased loan and lease losses.

Reclassification

Certain previously reported amounts have been reclassified to conform to the current year's presentation.
(2) Recent Accounting Pronouncements
In April 2019, FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments to improve the Codifications or correct any unintended application.  Codification improvements to Update 2016-13 (Topic 326) will be effective on the same date as requirements in 2016-13.  Codification improvements to Update 2017-12 (Topic 815) will be effective as of the beginning of the first annual period beginning after the issuance date and Update 2016-01 (Topic 825) will be effective for fiscal years beginning after December 15, 2019.  Management believes that this ASU does apply and has not determined the impact, if any, as of September 30, 2019.
In August 2018, FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40), to add additional guidance to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement by providing guidance for determining when the arrangement includes a software license. The amendments in this update are effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption of the amendments in this update is permitted, including adoption in any interim period. Management is still determining the impact of this ASU, as of September 30, 2019.
In August 2018, FASB issued ASU 2018-14, Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20), to modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. This ASU is effective for fiscal years ending after December 15, 2020, for public business entities and for fiscal years ending after December 15, 2021, for all other entities. Early adoption is permitted. Management believes that this ASU does apply and has not determined the impact, if any, as of September 30, 2019.
In August 2018, FASB issued ASU 2018-13, Fair Value Measurement (Topic 820), to modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, based on the concepts in the Concepts Statement, including the consideration of costs and benefits. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. Management believes that this ASU does apply and has not determined the impact, if any, as of September 30, 2019.
In June 2016, the FASB issued ASU 2016-13, Financial instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The intent of this ASU is to replace the current GAAP method of calculating credit losses. Current GAAP uses a higher threshold at which probable losses can be calculated and recorded. The new process will require institutions to account for probable losses that originally would not have been part of the calculation. The calculation will incorporate future forecasting in addition to historical and current measures. For public entities that file with the SEC, this ASU is effective for the fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. This ASU must be applied to AFS Debt Securities, HTM Debt Securities, and HTM Loans. A retrospective approach will be applied cumulatively to retained earnings. Early adoption is permitted as of the fiscal years beginning after December 15, 2018. In November 2018, FASB issued ASU 2018-19 to clarify that operating lease receivables are not in scope of the credit losses standard. Management has determined that ASU 2016-13 does apply, but has not determined the impact, as of September 30,

9
Table of Contents
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements (Continued)

2019. In preparation for the adoption in 2020 of this ASU, Management formed a steering committee to oversee the adoption of ASU 2016-13. The steering committee, along with a project team, has developed an approach for implementation and has selected a third party software service provider. The new software model will include additional assumptions used to calculate credit losses over the estimated life of the financial assets and will include the impact of forecasted economic conditions. The project team is in the testing phase of the third party software by validating model results and assessing data inputs and potential model assumptions. The third party software is being used for both the loan and securities portfolios. Loan portfolios are to be modeled using a lifetime loss rate approach. Securities portfolios are to be modeled using a discounted cash flow approach. Management expects to have completed the testing phase during 4Q 2019. AFS Corporate Securities and HTM Municipal security segments necessitate a CECL allowance. As mentioned, the Company will utilize a DCF-based credit loss model. This model generates Expected Cash Flows on a security level and applies a Probability of Default in conjunction with a Loss Given Default to each instance of cash flow. The Company sources PD and LGD assumptions from white paper studies. The Company will employ a zero-loss expectation for securities issued by either the federal government or government-sponsored entities. The faith and credit of the United States government either implicitly or explicitly backs these securities and, thus, they have no associated credit risk. These zero-loss securities represent 85% of the Company’s investment portfolio. The Company is progressing with development of accounting policies and establishment of internal controls relevant to the updated methodologies and models. These aspects of the new methodologies are also expected to be completed during 4Q 2019.
In February 2016, FASB issued ASU 2016-02, Leases (“ASU 2016-02”). This ASU requires lessees to record most leases on their balance sheet but recognize expenses on their income statements in a manner similar to current accounting.  Subsequently, the FASB issued ASU 2018-10, ASU 2018-11, ASU 2018-20 and ASU 2019-01 to update provisions to ASU 2016-02.  The Company has adopted all of the above mentioned ASU's regarding leases as of January 1, 2019.  The standard had a material impact on our consolidated balance sheet by recognizing right-of-use asset operating leases and operating lease liabilities on the balance sheet.  However, there was no impact on our consolidated income statement as the timing of the expense recognition has not changed.  Additional details can be found in Note 12.


10
Table of Contents
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements (Continued)

(3) Investment Securities
The following tables set forth investment securities available-for-sale, held-to-maturity and equity securities held-for-trading at the dates indicated:
 
At September 30, 2019
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair Value
 
(In Thousands)
Investment securities available-for-sale:
 
 
 
 
 
 
 
GSE debentures
$
182,966

 
$
3,240

 
$
36

 
$
186,170

GSE CMOs
92,883

 
47

 
1,079

 
91,851

GSE MBSs
141,853

 
739

 
513

 
142,079

SBA commercial loan asset-backed securities
37

 
—

 
—

 
37

Corporate debt obligations
32,519

 
462

 
—

 
32,981

U.S. Treasury bonds
13,842

 
379

 
—

 
14,221

Total investment securities available-for-sale
$
464,100

 
$
4,867

 
$
1,628

 
$
467,339

Investment securities held-to-maturity:
 
 
 
 
 
 
 
GSE debentures
$
38,624

 
$
129

 
$
19

 
$
38,734

GSEs MBSs
9,937

 
—

 
102

 
9,835

Municipal obligations
46,102

 
663

 
2

 
46,763

Foreign government obligations
500

 
—

 
30

 
470

Total investment securities held-to-maturity
$
95,163

 
$
792

 
$
153

 
$
95,802

Equity securities held-for-trading
 
 
 
 
 
 
$
4,581


 
December 31, 2018
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair Value
 
(In Thousands)
Investment securities available-for-sale:
 
 
 
 
 
 
 
GSE debentures
$
184,072

 
$
99

 
$
3,092

 
$
181,079

GSE CMOs
107,363

 
17

 
4,250

 
103,130

GSE MBSs
169,334

 
124

 
4,369

 
165,089

SBA commercial loan asset-backed securities
51

 
—

 
—

 
51

Corporate debt obligations
40,618

 
—

 
910

 
39,708

U.S. Treasury bonds
13,812

 
65

 
141

 
13,736

Total investment securities available-for-sale
$
515,250

 
$
305

 
$
12,762

 
$
502,793

Investment securities held-to-maturity:
 
 
 
 
 
 
 
GSE debentures
$
50,546

 
$
22

 
$
967

 
$
49,601

GSEs MBSs
11,426

 
—

 
295

 
11,131

Municipal obligations
52,304

 
10

 
716

 
51,598

Foreign government obligations
500

 
—

 
—

 
500

Total investment securities held-to-maturity
$
114,776

 
$
32

 
$
1,978

 
$
112,830

Equity securities held-for-trading
 
 
 
 
 
 
$
4,207


As of September 30, 2019, the fair value of all investment securities available-for-sale was $467.3 million, with net unrealized gains of $3.2 million, compared to a fair value of $502.8 million and net unrealized losses of $12.5 million as of December 31, 2018. As of September 30, 2019, $169.7 million, or 36.3% of the portfolio, had gross unrealized losses of $1.6 million, compared to $466.7 million, or 92.8% of the portfolio, with gross unrealized losses of $12.8 million as of December 31, 2018.

11
Table of Contents
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements (Continued)

As of September 30, 2019, the fair value of all investment securities held-to-maturity was $95.8 million, with net unrealized gains of $0.6 million, compared to a fair value of $112.8 million with net unrealized losses of $1.9 million as of December 31, 2018. As of September 30, 2019, $19.9 million, or 20.8% of the portfolio, had gross unrealized losses of $0.2 million. As of December 31, 2018, $102.1 million, or 90.5% of the portfolio had gross unrealized losses of $2.0 million.
As of September 30, 2019, the Company recorded a fair value of $4.6 million of equity securities held-for-trading. As of December 31, 2018, the Company recorded a fair value of $4.2 million of equity securities held-for-trading.
Investment Securities as Collateral
As of September 30, 2019 and December 31, 2018, respectively, $437.8 million and $442.5 million of investment securities were pledged as collateral for repurchase agreements; municipal deposits; treasury, tax and loan deposits; swap agreements; FRB borrowings; and FHLBB borrowings. The Banks did not have any outstanding FRB borrowings as of September 30, 2019 and December 31, 2018.
Other-Than-Temporary Impairment ("OTTI")
Investment securities as of September 30, 2019 and December 31, 2018 that have been in a continuous unrealized loss position for less than twelve months or twelve months or longer are as follows:
 
At September 30, 2019
 
Less than
Twelve Months
 
Twelve Months
or Longer
 
Total
 
Estimated
Fair Value
 
Unrealized
Losses
 
Estimated
Fair Value
 
Unrealized
Losses
 
Estimated
Fair Value
 
Unrealized
Losses
 
(In Thousands)
Investment securities available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
GSE debentures
$
5,564

 
$
22

 
$
9,777

 
$
14

 
$
15,341

 
$
36

GSE CMOs
23,489

 
176

 
61,385

 
903

 
84,874

 
1,079

GSE MBSs
24,787

 
84

 
44,672

 
429

 
69,459

 
513

SBA commercial loan asset-backed securities
—

 
—

 
36

 
—

 
36

 
—

Temporarily impaired investment securities available-for-sale
53,840

 
282

 
115,870

 
1,346

 
169,710

 
1,628

Investment securities held-to-maturity:
 
 
 
 
 
 
 
 
 
 
 
GSE debentures
2,986

 
12

 
2,991

 
7

 
5,977

 
19

GSEs MBSs
—

 
—

 
9,772

 
102

 
9,772

 
102

Municipal obligations
3,508

 
2

 
206

 
—

 
3,714

 
2

Foreign government obligations
470

 
30

 
—

 
—

 
470

 
30

Temporarily impaired investment securities held-to-maturity
6,964

 
44

 
12,969

 
109

 
19,933

 
153

Total temporarily impaired investment securities
$
60,804


$
326


$
128,839


$
1,455


$
189,643


$
1,781


12
Table of Contents
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements (Continued)

 
December 31, 2018
 
Less than
Twelve Months
 
Twelve Months
or Longer
 
Total
 
Estimated
Fair Value
 
Unrealized
Losses
 
Estimated
Fair Value
 
Unrealized
Losses
 
Estimated
Fair Value
 
Unrealized
Losses
 
(In Thousands)
Investment securities available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
GSE debentures
$
25,780

 
$
191

 
$
130,284

 
$
2,901

 
$
156,064

 
$
3,092

GSE CMOs
—

 
—

 
102,630

 
4,250

 
102,630

 
4,250

GSE MBSs
21,487

 
113

 
138,051

 
4,256

 
159,538

 
4,369

SBA commercial loan asset-backed securities
—

 
—

 
51

 
—

 
51

 
—

Corporate debt obligations
10,019

 
93

 
29,689

 
817

 
39,708

 
910

U.S. Treasury bonds
3,927

 
37

 
4,753

 
104

 
8,680

 
141

Temporarily impaired investment securities available-for-sale
61,213

 
434

 
405,458

 
12,328

 
466,671

 
12,762

Investment securities held-to-maturity:
 
 
 
 
 
 
 
 
 
 
 
GSE debentures
—

 
—

 
40,653

 
967

 
40,653

 
967

GSEs MBSs
—

 
—

 
11,080

 
295

 
11,080

 
295

Municipal obligations
14,813

 
107

 
35,058

 
609

 
49,871

 
716

Foreign government obligations
—

 
—

 
500

 
—

 
500

 
—

Temporarily impaired investment securities held-to-maturity
14,813

 
107

 
87,291

 
1,871

 
102,104

 
1,978

Total temporarily impaired investment securities
$
76,026

 
$
541

 
$
492,749

 
$
14,199

 
$
568,775

 
$
14,740


The Company performs regular analysis of the investment securities available-for-sale portfolio to determine whether a decline in fair value indicates that an investment security is OTTI. In making these OTTI determinations, management considers, among other factors, the length of time and extent to which the fair value has been less than amortized cost; projected future cash flows; credit subordination and the creditworthiness; capital adequacy and near-term prospects of the issuers.
Management also considers the Company's capital adequacy, interest-rate risk, liquidity and business plans in assessing whether it is more likely than not that the Company will sell or be required to sell the investment securities before recovery. If the Company determines that a decline in fair value is OTTI and that it is more likely than not that the Company will not sell or be required to sell the investment security before recovery of its amortized cost, the credit portion of the impairment loss is recognized in the Company's unaudited consolidated statement of income and the noncredit portion is recognized in accumulated other comprehensive income. The credit portion of the OTTI impairment represents the difference between the amortized cost and the present value of the expected future cash flows of the investment security. If the Company determines that a decline in fair value is OTTI and it is more likely than not that it will sell or be required to sell the investment security before recovery of its amortized cost, the entire difference between the amortized cost and the fair value of the security will be recognized in the Company's unaudited consolidated statement of income.
Investment Securities Available-For-Sale Impairment Analysis
The following discussion summarizes, by investment security type, the basis for evaluating if the applicable investment securities within the Company’s available-for-sale portfolio were OTTI as of September 30, 2019. Based on the analysis below, it was determined that is it more likely than not that the Company will not sell or be required to sell the investment securities before recovery of its amortized cost. The Company's ability and intent to hold these investment securities until recovery is supported by the Company's strong capital and liquidity positions as well as its historically low portfolio turnover. As such, management has determined that the investment securities are not OTTI as of September 30, 2019. If market conditions for investment securities worsen or the creditworthiness of the underlying issuers deteriorates, it is possible that the Company may recognize additional OTTI in future periods.

13
Table of Contents
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements (Continued)

U.S. Government-Sponsored Enterprises
The Company invests in securities issued by U.S. Government-sponsored enterprises ("GSEs"), including GSE debentures, mortgage-backed securities ("MBSs"), and collateralized mortgage obligations ("CMOs"). GSE securities include obligations issued by the Federal National Mortgage Association ("FNMA"), the Federal Home Loan Mortgage Corporation ("FHLMC"), the Government National Mortgage Association ("GNMA"), the FHLBB and the Federal Farm Credit Bank. As of September 30, 2019, only GNMA MBSs and CMOs, and Small Business Administration ("SBA") commercial loan asset-backed securities in our available-for-sale portfolio with an estimated fair value of $18.3 million were backed explicitly by the full faith and credit of the U.S. Government, compared to $20.6 million as of December 31, 2018.
As of September 30, 2019, the Company owned 60 GSE debentures with a total fair value of $186.2 million, and a net unrealized gain of $3.2 million. As of December 31, 2018, the Company held 60 GSE debentures with a total fair value of $181.1 million, with a net unrealized loss of $3.0 million. As of September 30, 2019, 6 of the 60 securities in this portfolio were in an unrealized loss position. As of December 31, 2018, 51 of the 60 securities in this portfolio were in an unrealized loss position. All securities are performing and backed by the implicit (FHLB/FNMA/FHLMC) or explicit (GNMA/SBA) guarantee of the U.S Government. During the nine months ended September 30, 2019, the Company did not purchase any GSE debentures. This compares to $33.9 million purchased during the same period in 2018.
As of September 30, 2019, the Company owned 61 GSE CMOs with a total fair value of $91.9 million and a net unrealized loss of $1.0 million. As of December 31, 2018, the Company held 61 GSE CMOs with a total fair value of $103.1 million with a net unrealized loss of $4.2 million. As of September 30, 2019, 41 of the 61 securities in this portfolio were in an unrealized loss position. As of December 31, 2018, 46 of the 61 securities in this portfolio were in an unrealized loss position. All securities are performing and backed by the implicit (FHLB/FNMA/FHLMC) or explicit (GNMA) guarantee of the U.S Government. During the nine months ended September 30, 2019 and 2018, the Company did not purchase any GSE CMOs.
As of September 30, 2019, the Company owned 151 GSE MBSs with a total fair value of $142.1 million and a net unrealized gain of $0.2 million. As of December 31, 2018, the Company held 165 GSE MBSs with a total fair value of $165.1 million with a net unrealized loss of $4.2 million. As of September 30, 2019, 49 of the 151 securities in this portfolio were in an unrealized loss position. As of December 31, 2018, 93 of the 165 securities in this portfolio were in an unrealized loss position. All securities are performing and backed by the implicit (FHLB/FNMA/FHLMC) or explicit (GNMA) guarantee of the U.S Government. During the nine months ended September 30, 2019, the Company did not purchase any GSE MBSs. This compares to $15.2 million purchased during the same period in 2018.
SBA Commercial Loan Asset-Backed
As of September 30, 2019, the Company owned 4 SBA securities with a total fair value of $37.0 thousand, which approximated amortized cost. As of December 31, 2018, the Company owned 4 SBA securities with a total fair value of $51.0 thousand, which approximated amortized cost. As of September 30, 2019, 3 of the 4 securities in this portfolio were in an unrealized loss position. As of December 31, 2018, all 4 of the securities in this portfolio were in an unrealized loss position. All securities are performing and backed by the explicit guarantee of the U.S Government. During the nine months ended September 30, 2019 and 2018, the Company did not purchase any SBA securities.
Corporate Obligations
The Company may invest in high-quality corporate obligations to provide portfolio diversification and improve the overall yield on the portfolio. As of September 30, 2019, the Company held 9 corporate obligation securities with a total fair value of $33.0 million and a net unrealized gain of $0.5 million. As of December 31, 2018, the Company held 11 corporate obligation securities with a total fair value of $39.7 million and a net unrealized loss of $0.9 million. As of September 30, 2019, none of the securities in this portfolio were in an unrealized loss position. As of December 31, 2018, all 11 of the securities in this portfolio were in an unrealized loss position. Full collection of the obligations is expected because the financial condition of the issuers is sound, they have not defaulted on scheduled payments, the obligations are rated investment grade, and the Company has the ability and intent to hold the obligations for a period of time to recover the amortized cost. During the nine months ended September 30, 2019 and 2018, the Company did not purchase any corporate obligations.

14
Table of Contents
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements (Continued)

U.S. Treasury Bonds
The Company invests in securities issued by the U.S. government. As of September 30, 2019, the Company owned 3 U.S. Treasury bonds with a total fair value of $14.2 million and an unrealized gain of $0.4 million. This compares to 7 U.S. Treasury bonds with a total fair value of $13.7 million and an unrealized loss of $0.1 million as of December 31, 2018. During the nine months ended September 30, 2019 the Company did not purchase any U.S. Treasury bonds. This compares to $24.7 million purchased during the same period in 2018.
Equity Securities Held-for-Trading
From time to time, the Company will invest in equity securities held-for-trading. As of September 30, 2019 and December 31, 2018, the Company owned 3 equity securities held-for-trading with a fair value of $4.6 million and $4.2 million, respectively.
Investment Securities Held-to-Maturity Impairment Analysis
The following discussion summarizes by investment security type, the basis for evaluating if the applicable investment securities within the Company's held-to-maturity portfolio were OTTI at September 30, 2019. Management has the ability and the intent to hold the securities until maturity.
U.S. Government-Sponsored Enterprises
As of September 30, 2019, the Company owned 13 GSE debentures with a total fair value of $38.7 million, and an unrealized gain of $0.1 million. As of December 31, 2018, the Company owned 17 GSE debentures with a total fair value of $49.6 million and an unrealized loss of $0.9 million. As of September 30, 2019, 2 of the 13 securities in this portfolio were in an unrealized loss position. As of December 31, 2018, 14 of the 17 securities in this portfolio were in an unrealized loss position. All securities are performing and backed by the implicit (FHLB/FNMA/FHLMC) or explicit (GNMA) guarantee of the U.S Government. During the nine months ended September 30, 2019, the Company did not purchase any GSE debentures as compared to the same period in 2018, when the Company purchased a total of $8.9 million in GSE debentures.
As of September 30, 2019, the Company owned 11 GSE MBSs with a total fair value of $9.8 million and an unrealized loss of $0.1 million. As of December 31, 2018, the Company owned 11 GSE MBSs with a total fair value of $11.1 million and an unrealized loss of $0.3 million. As of September 30, 2019 and December 31, 2018, 8 of the 11 securities in this portfolio were in an unrealized loss position. All securities are performing and backed by the implicit (FHLB/FNMA/FHLMC) or explicit (GNMA) guarantee of the U.S Government. During the nine months ended September 30, 2019 and 2018, the Company did not purchase any GSE MBSs.
Municipal Obligations
The Company invests in certain state and municipal securities with high credit ratings for portfolio diversification and tax planning purposes. As of September 30, 2019, the Company owned 88 municipal obligation securities with a total fair value of $46.8 million and a net unrealized gain of $0.7 million. As of December 31, 2018, the Company owned 98 municipal obligation securities with a total fair value of $51.6 million and an unrealized loss of $0.7 million. As of September 30, 2019, 9 of the 88 securities in this portfolio were in an unrealized loss position as compared to December 31, 2018, when 94 of the 98 securities were in an unrealized loss position. During the nine months ended September 30, 2019 and 2018, the Company did not purchase any municipal obligations.
Foreign Government Obligations
As of September 30, 2019 and December 31, 2018, the Company owned 1 foreign government obligation security with a fair value of $0.5 million, which approximated cost. As of September 30, 2019 and December 31, 2018, the security was in an unrealized loss position. During the nine months ended September 30, 2019 the Company repurchased the foreign government obligation that had matured. During the same period in 2018, the Company did not purchase any new foreign government obligations during this period.

15
Table of Contents
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements (Continued)

Portfolio Maturities
The final stated maturities of the debt securities are as follows for the periods indicated:
 
At September 30, 2019
 
At December 31, 2018
 
Amortized
Cost
 
Estimated
Fair Value
 
Weighted
Average
Rate
 
Amortized
Cost
 
Estimated
Fair Value
 
Weighted
Average
Rate
 
(Dollars in Thousands)
Investment securities available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
Within 1 year
$
16,804

 
$
16,795

 
1.85
%
 
$
12,041

 
$
12,007

 
2.03
%
After 1 year through 5 years
211,446

 
214,683

 
2.19
%
 
195,701

 
192,692

 
2.14
%
After 5 years through 10 years
70,538

 
71,239

 
2.16
%
 
115,665

 
112,819

 
2.18
%
Over 10 years
165,312

 
164,622

 
2.12
%
 
191,843

 
185,275

 
2.17
%
 
$
464,100

 
$
467,339

 
2.15
%
 
$
515,250

 
$
502,793

 
2.16
%
Investment securities held-to-maturity:
 
 
 
 
 
 
 
 
 
 
 
Within 1 year
$
6,499

 
$
6,504

 
1.85
%
 
$
7,640

 
$
7,618

 
1.17
%
After 1 year through 5 years
68,949

 
69,419

 
1.85
%
 
72,735

 
71,492

 
1.84
%
After 5 years through 10 years
9,840

 
10,107

 
1.78
%
 
23,025

 
22,640

 
2.20
%
Over 10 years
9,875

 
9,772

 
1.92
%
 
11,376

 
11,080

 
2.13
%
 
$
95,163

 
$
95,802

 
1.85
%
 
$
114,776

 
$
112,830

 
1.89
%

Actual maturities of debt securities will differ from those presented above since certain obligations amortize and may also provide the issuer the right to call or prepay the obligation prior to scheduled maturity without penalty. MBSs and CMOs are included above based on their final stated maturities; the actual maturities, however, may occur earlier due to anticipated prepayments and stated amortization of cash flows.
As of September 30, 2019, issuers of debt securities with an estimated fair value of $45.0 million had the right to call or prepay the obligations. Of the $45.0 million, approximately $3.0 million matures within 1 year, $41.5 million matures in 1 - 5 years, $0.6 million matures in 6 - 10 years, and none mature after ten years. As of December 31, 2018, issuers of debt securities with an estimated fair value of approximately $19.1 million had the right to call or prepay the obligations. Of the $19.1 million, approximately none mature within 1 year, $8.4 million matures in 1-5 years, $10.7 million matures in 6-10 years, and none mature after ten years.
Security Sales
On February 3, 2017, the Company, through BSC, received $319 in cash and 14.876 shares of Community Bank Systems, Inc. (“CBU”) common stock in exchange for each of the 9,721 shares of Northeast Retirement Services, Inc. (“NRS”) stock held by BSC. The exchange was completed in accordance with the merger agreement entered into between NRS and CBU. As part of the merger agreement, the Company was restricted to selling 5,071 shares of CBU per day in the open market. During the quarter ended March 31, 2017, the Company completed the sale of all the CBU shares acquired in the merger. When securities were sold, the adjusted cost of the specific security sold was used to compute the gain or loss on the sale.
On March 6, 2018, the Company, through its wholly owned subsidiary, BSC, received $0.6 million in cash and 11,303 shares of CBU common stock as settlement for the indemnification escrow on the 12 month anniversary date of the merger between NRS and CBU. The Company subsequently sold all 11,303 shares of the CBU stock and recognized a gain on the sale of $0.6 million.
During the month of March 2018, the Company, through Brookline Bank’s wholly owned subsidiary, LSC, sold 3 trust preferred securities with a book value of $1.5 million for a loss of $0.1 million. The table on the following page includes the activity with respect to the sale of the trust preferred securities and restricted equity securities.
There were no securities sold during the nine months ended September 30, 2019.

16
Table of Contents
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements (Continued)

Sales of investment and restricted equity securities are summarized as follows:
 
Nine Months Ended September 30, 2019

Nine Months Ended September 30, 2018
 
(In Thousands)
Proceeds from sale of trust preferred, marketable and restricted equity securities
$
—

 
$
2,700

Sales of trading securities
—

 
—

 
 
 
 
Gross gains from securities sales
—

 
1,230

Gross losses from securities sales
—

 
(68
)
Gain on sales of securities, net
$
—

 
$
1,162


(4) Loans and Leases
The following tables present loan and lease balances and weighted average coupon rates for the originated and acquired loan and lease portfolios at the dates indicated:
 
At September 30, 2019
 
Originated
 
Acquired
 
Total
 
Balance
 
Weighted
Average
Coupon
 
Balance
 
Weighted
Average
Coupon
 
Balance
 
Weighted
Average
Coupon
 
(Dollars In Thousands)
Commercial real estate loans:
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
$
2,343,137

 
4.49
%
 
$
97,954

 
4.66
%
 
$
2,441,091

 
4.50
%
Multi-family mortgage
882,665

 
4.37
%
 
36,569

 
4.60
%
 
919,234

 
4.38
%
Construction
220,685

 
5.31
%
 
8,441

 
6.73
%
 
229,126

 
5.36
%
Total commercial real estate loans
3,446,487

 
4.51
%
 
142,964

 
4.77
%
 
3,589,451

 
4.52
%
Commercial loans and leases:
 
 
 
 
 
 
 
 
 
 
 

Commercial
747,968

 
4.83
%
 
18,915

 
5.11
%
 
766,883

 
4.84
%
Equipment financing
1,026,761

 
7.73
%
 
2,519

 
5.98
%
 
1,029,280

 
7.73
%
Condominium association
54,225

 
4.87
%
 
—

 
—
%
 
54,225

 
4.87
%
Total commercial loans and leases
1,828,954

 
6.46
%
 
21,434

 
5.21
%
 
1,850,388

 
6.45
%
Consumer loans:
 
 
 
 
 
 
 
 
 
 
 

Residential mortgage
680,631

 
4.09
%
 
112,102

 
4.50
%
 
792,733

 
4.15
%
Home equity
341,114

 
4.73
%
 
34,143

 
5.12
%
 
375,257

 
4.77
%
Other consumer
38,890

 
4.79
%
 
102

 
17.88
%
 
38,992

 
4.83
%
Total consumer loans
1,060,635

 
4.32
%
 
146,347

 
4.65
%
 
1,206,982

 
4.36
%
Total loans and leases
$
6,336,076

 
5.04
%
 
$
310,745

 
4.74
%
 
$
6,646,821

 
5.03
%

17
Table of Contents
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements (Continued)

 
At December 31, 2018
 
Originated
 
Acquired
 
Total
 
Balance
 
Weighted
Average
Coupon
 
Balance
 
Weighted
Average
Coupon
 
Balance
 
Weighted
Average
Coupon
 
(Dollars In Thousands)
Commercial real estate loans:
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
$
2,208,904

 
4.61
%
 
$
121,821

 
4.62
%
 
$
2,330,725

 
4.61
%
Multi-family mortgage
799,813

 
4.51
%
 
47,898

 
4.58
%
 
847,711

 
4.51
%
Construction
151,138

 
5.62
%
 
22,162

 
6.74
%
 
173,300

 
5.76
%
Total commercial real estate loans
3,159,855

 
4.63
%
 
191,881

 
4.85
%
 
3,351,736

 
4.64
%
Commercial loans and leases:
 
 
 
 
 
 
 
 
 
 
 

Commercial
712,630

 
4.96
%
 
23,788

 
5.39
%
 
736,418

 
4.97
%
Equipment financing
978,840

 
7.61
%
 
3,249

 
5.97
%
 
982,089

 
7.60
%
Condominium association
50,451

 
4.70
%
 
—

 
—
%
 
50,451

 
4.70
%
Total commercial loans and leases
1,741,921

 
6.44
%
 
27,037

 
5.46
%
 
1,768,958

 
6.43
%
Consumer loans:
 
 
 
 
 
 
 
 
 
 
 

Residential mortgage
653,059

 
4.09
%
 
129,909

 
4.45
%
 
782,968

 
4.15
%
Home equity
331,014

 
5.05
%
 
45,470

 
5.39
%
 
376,484

 
5.09
%
Other consumer
23,260

 
5.55
%
 
110

 
17.81
%
 
23,370

 
5.61
%
Total consumer loans
1,007,333

 
4.44
%
 
175,489

 
4.70
%
 
1,182,822

 
4.48
%
Total loans and leases
$
5,909,109

 
5.13
%
 
$
394,407

 
4.83
%
 
$
6,303,516

 
5.11
%

The net unamortized deferred loan origination fees and costs included in total loans and leases were $15.5 million and $15.6 million as of September 30, 2019 and December 31, 2018, respectively.
The Banks and subsidiaries lend primarily in all New England states, with the exception of equipment financing, 27.4% of which is in the greater New York and New Jersey metropolitan area and 72.6% of which is in other areas in the United States of America as of September 30, 2019.
Accretable Yield for the Acquired Loan Portfolio
The following table summarizes activity in the accretable yield for the acquired loan portfolio for the periods indicated:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019

2018
 
2019
 
2018
 
(In Thousands)
Balance at beginning of period
$
6,852

 
$
8,813

 
$
7,905

 
$
10,522

Accretion
(1,302
)
 
(890
)
 
(3,143
)
 
(3,223
)
Reclassification from nonaccretable difference as a result of changes in expected cash flows
806

 
224

 
1,594

 
848

Balance at end of period
$
6,356

 
$
8,147

 
$
6,356

 
$
8,147


On a quarterly basis, subsequent to acquisition, management reforecasts the expected cash flows for acquired ASC 310-30 loans, taking into account prepayment speeds, probability of default and loss given defaults. Management compares cash flow projections per the reforecast to the original cash flow projections and determines whether any reduction in cash flow expectations are due to deterioration, or if the change in cash flow expectation is related to noncredit events. This cash flow analysis is used to evaluate the need for a provision for loan and lease losses and/or prospective yield adjustments. During the three months ended September 30, 2019 and 2018, accretable yield adjustments totaling $806 thousand and $224 thousand, respectively, were made for certain loan pools. During the nine months ended September 30, 2019 and 2018, accretable yield

18
Table of Contents
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements (Continued)

adjustments totaling $1.6 million and $0.8 million, respectively, were made for certain loan pools. These accretable yield adjustments, which are subject to continued re-assessment, will be recognized over the remaining lives of those pools.
Loans and Leases Pledged as Collateral
As of September 30, 2019 and December 31, 2018, there were $3.0 billion and $3.0 billion, respectively, of loans and leases pledged as collateral for repurchase agreements; municipal deposits; treasury, tax and loan deposits; swap agreements; FRB borrowings; and FHLBB borrowings. The Banks did not have any outstanding FRB borrowings as of September 30, 2019 and December 31, 2018.
(5) Allowance for Loan and Lease Losses
The following tables present the changes in the allowance for loan and lease losses and the recorded investment in loans and leases by portfolio segment for the periods indicated:
 
Three Months Ended September 30, 2019
 
Commercial
Real Estate
 
Commercial
 
Consumer
 
Total
 
(In Thousands)
Balance at June 30, 2019
$
28,668

 
$
24,333

 
$
5,634

 
$
58,635

Charge-offs
—

 
(1,175
)
 
(15
)
 
(1,190
)
Recoveries
—

 
772

 
52

 
824

Provision for loan and lease losses
361

 
463

 
42

 
866

Balance at September 30, 2019
$
29,029

 
$
24,393

 
$
5,713

 
$
59,135


 
Three Months Ended September 30, 2018
 
Commercial
Real Estate
 
Commercial
 
Consumer
 
Total
 
(In Thousands)
Balance at June 30, 2018
$
27,045

 
$
26,120

 
$
4,816

 
$
57,981

Charge-offs
—

 
(1,198
)
 
(29
)
 
(1,227
)
Recoveries
—

 
619

 
44

 
663

Provision for loan and lease losses
319

 
2,217

 
44

 
2,580

Balance at September 30, 2018
$
27,364

 
$
27,758

 
$
4,875

 
$
59,997


 
Nine Months Ended September 30, 2019
 
Commercial
Real Estate
 
Commercial
 
Consumer
 
Total
 
(In Thousands)
Balance at December 31, 2018
$
28,187

 
$
25,283

 
$
5,222

 
$
58,692

Charge-offs
—

 
(7,088
)
 
(56
)
 
(7,144
)
Recoveries
—

 
1,454

 
141

 
1,595

Provision for loan and lease losses
842

 
4,744

 
406

 
5,992

Balance at September 30, 2019
$
29,029

 
$
24,393

 
$
5,713

 
$
59,135


19
Table of Contents
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements (Continued)

 
Nine Months Ended September 30, 2018
 
Commercial
Real Estate
 
Commercial
 
Consumer
 
Total
 
(In Thousands)
Balance at December 31, 2017
$
27,112

 
$
26,333

 
$
5,147

 
$
58,592

Charge-offs
(103
)
 
(5,387
)
 
(134
)
 
(5,624
)
Recoveries
—

 
1,972

 
253

 
2,225

Provision (credit) for loan and lease losses
355

 
4,840

 
(391
)
 
4,804

Balance at September 30, 2018
$
27,364

 
$
27,758

 
$
4,875

 
$
59,997


The liability for unfunded credit commitments, which is included in other liabilities, was $1.8 million and $1.9 million at September 30, 2019 and December 31, 2018, respectively. No credit commitments were charged off against the liability account in the nine-month periods ended September 30, 2019 and 2018.
Provision for Credit Losses
The provisions for credit losses are set forth below for the periods indicated:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
 
(In Thousands)
Provision for loan and lease losses:
 
 
 
 
 
 
 
Commercial real estate
$
361

 
$
319

 
$
842

 
$
355

Commercial
463

 
2,217

 
4,744

 
4,840

Consumer
42

 
44

 
406

 
(391
)
Total provision for loan and lease losses
866

 
2,580

 
5,992

 
4,804

Unfunded credit commitments
5

 
137

 
(11
)
 
24

Total provision for credit losses
$
871

 
$
2,717

 
$
5,981

 
$
4,828


Allowance for Loan and Lease Losses Methodology
Management has established a methodology to determine the adequacy of the allowance for loan and lease losses that assesses the risks and losses inherent in the loan and lease portfolio. Additions to the allowance for loan and lease losses are made by charges to the provision for credit losses. Losses on loans and leases are charged off against the allowance when all or a portion of a loan or lease is considered uncollectible. Subsequent recoveries on loans previously charged off, if any, are credited to the allowance when realized.
Management uses a consistent and systematic process and methodology to evaluate the adequacy of the allowance for loan and lease losses on a quarterly basis. For purposes of determining the allowance for loan and lease losses, the Company has segmented certain loans and leases in the portfolio by product type into the following segments: (1) commercial real estate loans, (2) commercial loans and leases, and (3) consumer loans. Portfolio segments are further disaggregated into classes based on the associated risks within the segments. Commercial real estate loans are divided into three classes: commercial real estate loans, multi-family mortgage loans, and construction loans. Commercial loans and leases are divided into three classes: commercial loans which include taxi medallion loans, equipment financing, and loans to condominium associations. Consumer loans are divided into three classes: residential mortgage loans, home equity loans, and other consumer loans. A formula-based credit evaluation approach is applied to each group, coupled with an analysis of certain loans for impairment. For each class of loan, management makes significant judgments in selecting the estimation method that fits the credit characteristics of its class and portfolio segment as set forth below.
The general allowance related to loans collectively evaluated for impairment is determined using a formula-based approach utilizing the risk ratings of individual credits and loss factors derived from historic portfolio loss rates, which include estimates of incurred losses over an estimated loss emergence period (“LEP”). The LEP was generated utilizing a charge-off look-back analysis which studied the time from the first indication of elevated risk of repayment (or other early event indicating

20
Table of Contents
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements (Continued)

a problem) to eventual charge-off to support the LEP considered in the allowance calculation. This reserving methodology established the approximate number of months of LEP that represents incurred losses for each portfolio. In addition to quantitative measures, relevant qualitative factors include, but are not limited to: (1) levels and trends in past due and impaired loans, (2) levels and trends in charge-offs, (3) changes in underwriting standards, policy exceptions, and credit policy, (4) experience of lending management and staff, (5) economic trends, (6) industry conditions, (7) effects of changes in credit concentrations, (8) interest rate environment, and (9) regulatory and other changes. The general allowance related to the acquired loans collectively evaluated for impairment is determined based upon the degree, if any, of deterioration in the pooled loans subsequent to acquisition. The qualitative factors used in the determination are the same as those used for originated loans.
Specific valuation allowances are established for impaired originated loans with book values greater than the discounted present value of expected future cash flows or, in the case of collateral-dependent impaired loans, for any excess of a loan's book balance over the fair value of its underlying collateral. Specific valuation allowances are established for acquired loans with deterioration in the discounted present value of expected future cash flows since acquisitions or, in the case of collateral dependent impaired loans, for any increase in the excess of a loan's book balance greater than the fair value of its underlying collateral. A specific valuation allowance for losses on troubled debt restructured ("TDR") loans is determined by comparing the net carrying amount of the TDR loan with the restructured loan's cash flows discounted at the original effective rate. Impaired loans are reviewed quarterly with adjustments made to the calculated reserve as necessary.
As of September 30, 2019, management believes that the methodology for calculating the allowance is sound and that the allowance provides a reasonable basis for determining and reporting on probable losses incurred in the Company’s loan portfolios.
As of September 30, 2019, the Company had a portfolio of approximately $10.4 million in loans secured by taxi medallions issued by the cities of Boston and Cambridge, Massachusetts. As of December 31, 2018, this portfolio was approximately $13.7 million. For collateral valuation purposes, taxi medallions are currently estimated at $35 thousand for Boston and $10 thousand for Cambridge. The Company has no taxi medallion exposure outside Massachusetts.
As of September 30, 2019, the Company had an allowance for loan and lease losses associated with taxi medallion loans of $1.1 million of which $0.6 million were specific reserves and $0.5 million was a general reserve. As of December 31, 2018, the Company had an allowance for loan and lease losses associated with taxi medallion loans of $2.5 million of which $1.9 million were specific reserves and $0.6 million was a general reserve. The decrease in the allowance for loan and leases associated with taxi medallion loans was primarily driven by the decrease in specific reserves due to charge-offs in the taxi medallion portfolio. The total TDRs secured by taxi medallions decreased by $2.7 million from $3.7 million at December 31, 2018 to $1.0 million at September 30, 2019. The total loans secured by taxi medallions that were placed on nonaccrual decreased by $2.5 million to $1.2 million at September 30, 2019 from $3.7 million at December 31, 2018. The decreases in TDRs and non-accruing loans secured by taxi medallions were primarily due to the charge-offs in taxi medallion relationships during the first nine months of 2019. Further declines in demand for taxi services or further deterioration in the value of taxi medallions may result in higher delinquencies and losses beyond that provided for in the allowance for loan and lease losses.
The general allowance for loan and lease losses was $57.4 million as of September 30, 2019, compared to $55.6 million as of December 31, 2018. The specific allowance for loan and lease losses was $1.7 million as of September 30, 2019, compared to $3.1 million as of December 31, 2018. The specific allowance decreased by $1.4 million during the nine months ended September 30, 2019 primarily due to the charge-offs of $1.7 million on loans collateralized by taxi medallions.
Credit Quality Assessment
At the time of loan origination, a rating is assigned based on the capacity to pay and general financial strength of the borrower, the value of assets pledged as collateral, and the evaluation of third party support such as a guarantor. The Company continually monitors the credit quality of the loan portfolio using all available information. The officer responsible for handling each loan is required to initiate changes to risk ratings when changes in facts and circumstances occur that warrant an upgrade or downgrade in a loan rating. Based on this information, loans demonstrating certain payment issues or other weaknesses may be categorized as delinquent, impaired, nonperforming and/or put on nonaccrual status. Additionally, in the course of resolving such loans, the Company may choose to restructure the contractual terms of certain loans to match the borrower's ability to repay the loan based on their current financial condition. If a restructured loan meets certain criteria, it may be categorized as a TDR loan.

21
Table of Contents
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements (Continued)

The Company reviews numerous credit quality indicators when assessing the risk in its loan portfolio. For all loans, the Company utilizes an eight-grade loan rating system, which assigns a risk rating to each borrower based on a number of quantitative and qualitative factors associated with a loan transaction. Factors considered include industry and market conditions; position within the industry; earnings trends; operating cash flow; asset/liability values; debt capacity; guarantor strength; management and controls; financial reporting; collateral; and other considerations. In addition, the Company's independent loan review group evaluates the credit quality and related risk ratings in all loan portfolios. The results of these reviews are reported to the Risk Committee of the Board of Directors on a periodic basis and annually to the Board of Directors. For the consumer loans, the Company heavily relies on payment status for calibrating credit risk.
The ratings categories used for assessing credit risk in the commercial real estate, multi-family mortgage, construction, commercial, equipment financing, condominium association and other consumer loan and lease classes are defined as follows:
1 -4 Rating—Pass
Loan rating grades "1" through "4" are classified as "Pass," which indicates borrowers are performing in accordance with the terms of the loan and are less likely to result in loss due to the capacity of the borrower to pay and the adequacy of the value of assets pledged as collateral.
5 Rating—Other Assets Especially Mentioned ("OAEM")
Borrowers exhibit potential credit weaknesses or downward trends deserving management's attention. If not checked or corrected, these trends will weaken the Company's asset and position. While potentially weak, currently these borrowers are marginally acceptable; no loss of principal or interest is envisioned.
6 Rating—Substandard
Borrowers exhibit well defined weaknesses that jeopardize the orderly liquidation of debt. Substandard loans may be inadequately protected by the current net worth and paying capacity of the obligors or by the collateral pledged, if any. Normal repayment from the borrower is in jeopardy. Although no loss of principal is envisioned, there is a distinct possibility that a partial loss of interest and/or principal will occur if the deficiencies are not corrected. Collateral coverage may be inadequate to cover the principal obligation.
7 Rating—Doubtful
Borrowers exhibit well-defined weaknesses that jeopardize the orderly liquidation of debt with the added provision that the weaknesses make collection of the debt in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Serious problems exist to the point where partial loss of principal is likely.
8 Rating—Definite Loss
Borrowers deemed incapable of repayment. Loans to such borrowers are considered uncollectible and of such little value that continuation as active assets of the Company is not warranted.
Assets rated as "OAEM," "substandard" or "doubtful" based on criteria established under banking regulations are collectively referred to as "criticized" assets.

22
Table of Contents
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements (Continued)

Credit Quality Information
The following tables present the recorded investment in loans in each class as of September 30, 2019, by credit quality indicator.
 
At September 30, 2019
 
 
Commercial
Real Estate
 
Multi-
Family
Mortgage
 
Construction
 
Commercial
 
Equipment
Financing
 
Condominium
Association
 
Other
Consumer
Total
 
(In Thousands)
 
Originated:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loan rating:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pass
$
2,336,984

 
$
882,578

 
$
220,685

 
$
729,682

 
$
1,012,405

 
$
54,062

 
$
38,889

$
5,275,285

OAEM
2,982

 
—

 
—

 
11,751

 
1,451

 
—

 
—

16,184

Substandard
3,171

 
87

 
—

 
6,532

 
11,455

 
163

 
1

21,409

Doubtful
—

 
—

 
—

 
3

 
1,450

 
—

 
—

1,453

Total originated
2,343,137

 
882,665

 
220,685

 
747,968

 
1,026,761

 
54,225

 
38,890

5,314,331

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquired:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loan rating:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pass
86,854

 
36,569

 
3,571

 
18,313

 
2,512

 
—

 
102

147,921

OAEM
2,076

 
—

 
4,870

 
370

 
—

 
—

 
—

7,316

Substandard
9,024

 
—

 
—

 
232

 
7

 
—

 
—

9,263

Total acquired
97,954

 
36,569

 
8,441

 
18,915

 
2,519

 
—

 
102

164,500

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans
$
2,441,091

 
$
919,234

 
$
229,126

 
$
766,883

 
$
1,029,280

 
$
54,225

 
$
38,992

$
5,478,831

As of September 30, 2019, there were no loans categorized as definite loss.




23
Table of Contents
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements (Continued)

 
 
At September 30, 2019
 
 
Residential Mortgage
 
Home Equity
 
 
(Dollars In Thousands)
Originated:
 
 
 
 
 
 
 
 
Loan-to-value ratio:
 
 

 
 
 
 

 
 
Less than 50%
 
$
182,444

 
23.0
%
 
$
136,072

 
36.3
%
50% - 69%
 
285,430

 
36.0
%
 
90,917

 
24.2
%
70% - 79%
 
181,726

 
22.9
%
 
78,552

 
20.9
%
80% and over
 
19,922

 
2.5
%
 
35,573

 
9.5
%
Data not available*
 
11,109

 
1.4
%
 
—

 
—
%
Total originated
 
680,631

 
85.8
%
 
341,114

 
90.9
%
 
 
 
 
 
 
 
 
 
Acquired:
 
 

 
 
 
 

 
 
Loan-to-value ratio:
 
 

 
 
 
 

 
 
Less than 50%
 
34,453

 
4.3
%
 
18,148

 
4.8
%
50%—69%
 
48,522

 
6.3
%
 
8,727

 
2.3
%
70%—79%
 
17,551

 
2.2
%
 
712

 
0.2
%
80% and over
 
5,885

 
0.7
%
 
2,559

 
0.7
%
Data not available
 
5,691

 
0.7
%
 
3,997

 
1.1
%
Total acquired
 
112,102

 
14.2
%
 
34,143

 
9.1
%
 
 
 
 
 
 
 
 
 
Total loans
 
$
792,733

 
100.0
%
 
$
375,257

 
100.0
%
_______________________________________________________________________________
* Represents in process general ledger accounts for which data are not available.


24
Table of Contents
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements (Continued)

The following tables present the recorded investment in loans in each class as of December 31, 2018, by credit quality indicator.
 
At December 31, 2018
 
 
Commercial
Real Estate
 
Multi-
Family
Mortgage
 
Construction
 
Commercial
 
Equipment
Financing
 
Condominium
Association
 
Other
Consumer
Total
 
(In Thousands)
 
Originated:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loan rating:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pass
$
2,198,377

 
$
799,483

 
$
150,742

 
$
685,773

 
$
969,275

 
$
50,186

 
$
23,249

$
4,877,085

OAEM
6,096

 
—

 
—

 
3,726

 
52

 
—

 
—

9,874

Substandard
4,431

 
330

 
396

 
22,870

 
6,895

 
265

 
11

35,198

Doubtful
—

 
—

 
—

 
261

 
2,618

 
—

 
—

2,879

Total originated
2,208,904

 
799,813

 
151,138

 
712,630

 
978,840

 
50,451

 
23,260

4,925,036

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquired:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loan rating:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pass
111,919

 
47,715

 
22,162

 
23,250

 
3,240

 
—

 
110

208,396

OAEM
626

 
—

 
—

 
236

 
—

 
—

 
—

862

Substandard
9,276

 
183

 
—

 
302

 
9

 
—

 
—

9,770

Total acquired
121,821

 
47,898

 
22,162

 
23,788

 
3,249

 
—

 
110

219,028

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans
$
2,330,725

 
$
847,711

 
$
173,300

 
$
736,418

 
$
982,089

 
$
50,451

 
$
23,370

$
5,144,064

As of December 31, 2018, there were no loans categorized as definite loss.




25
Table of Contents
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements (Continued)

 
At December 31, 2018
 
Residential Mortgage
 
Home Equity
 
(Dollars In Thousands)
Originated:
 
 
 
 
 
 
 
Loan-to-value ratio:
 

 
 
 
 

 
 
Less than 50%
$
171,523

 
21.9
%
 
$
142,534

 
37.9
%
50%—69%
287,337

 
36.7
%
 
84,423

 
22.4
%
70%—79%
173,870

 
22.2
%
 
73,898

 
19.6
%
80% and over
19,030

 
2.4
%
 
30,129

 
8.0
%
Data not available*
1,299

 
0.2
%
 
30

 
—
%
Total originated
653,059

 
83.4
%
 
331,014

 
87.9
%
 
 
 
 
 
 
 
 
Acquired:
 

 
 
 
 

 
 
Loan-to-value ratio:
 

 
 
 
 

 
 
Less than 50%
36,752

 
4.6
%
 
24,705

 
6.6
%
50%—69%
53,788

 
6.9
%
 
10,353

 
2.7
%
70%—79%
26,510

 
3.4
%
 
1,000

 
0.3
%
80% and over
6,701

 
0.9
%
 
4,348

 
1.2
%
Data not available
6,158

 
0.8
%
 
5,064

 
1.3
%
Total acquired
129,909

 
16.6
%
 
45,470

 
12.1
%
 
 
 
 
 
 
 
 
Total loans
$
782,968

 
100.0
%
 
$
376,484

 
100.0
%
_______________________________________________________________________________
* Represents in process general ledger accounts for which data are not available.


The following table presents information regarding foreclosed residential real estate property for the periods indicated:
 
At September 30, 2019
 
At December 31, 2018
 
(In Thousands)
Foreclosed residential real estate property held by the creditor
$
—

 
$
629

Recorded investment in mortgage loans collateralized by residential real estate property that are in the process of foreclosure
$
701

 
$
121










26
Table of Contents
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements (Continued)

Age Analysis of Past Due Loans and Leases
The following tables present an age analysis of the recorded investment in total loans and leases as of September 30, 2019 and December 31, 2018.
 
At September 30, 2019
 
Past Due
 
 
 
 
 
Loans and
Leases Past
Due Greater
Than 90 Days
and Accruing
 
 
 
31-60
Days
 
61-90
Days
 
Greater
Than
90 Days
 
Total
 
Current
 
Total Loans
and Leases
 
 
Nonaccrual
Loans and
Leases
 
(In Thousands)
Originated:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
$
2,157

 
$
—

 
$
2,540

 
$
4,697

 
$
2,338,440

 
$
2,343,137

 
$
—

 
$
2,811

Multi-family mortgage
557

 
—

 
—

 
557

 
882,108

 
882,665

 
—

 
87

Construction
—

 
1,306

 
—

 
1,306

 
219,379

 
220,685

 
—

 
—

Total commercial real estate loans
2,714

 
1,306

 
2,540

 
6,560

 
3,439,927

 
3,446,487

 
—

 
2,898

Commercial loans and leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
731

 
1,314

 
3,348

 
5,393

 
742,575

 
747,968

 
1,241

 
2,933

Equipment financing
3,108

 
1,683

 
7,741

 
12,532

 
1,014,229

 
1,026,761

 
—

 
12,817

Condominium association
451

 
—

 
—

 
451

 
53,774

 
54,225

 
—

 
163

Total commercial loans and leases
4,290

 
2,997

 
11,089

 
18,376

 
1,810,578

 
1,828,954

 
1,241

 
15,913

Consumer loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage
685

 
—

 
594

 
1,279

 
679,352

 
680,631

 
—

 
1,605

Home equity
504

 
201

 
113

 
818

 
340,296

 
341,114

 
1

 
254

Other consumer
22

 
5

 
2

 
29

 
38,861

 
38,890

 
—

 
3

Total consumer loans
1,211

 
206

 
709

 
2,126

 
1,058,509

 
1,060,635

 
1


1,862

Total originated loans and leases
$
8,215

 
$
4,509

 
$
14,338

 
$
27,062

 
$
6,309,014

 
$
6,336,076

 
$
1,242

 
$
20,673


27
Table of Contents
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements (Continued)

 
At September 30, 2019
 
Past Due
 
 
 
 
 
Loans and
Leases Past
Due Greater
Than 90 Days
and Accruing
 
 
 
31-60
Days
 
61-90
Days
 
Greater
Than
90 Days
 
Total
 
Current
 
Total Loans
and Leases
 
 
Nonaccrual
Loans and
Leases (1)
 
(In Thousands)
Acquired:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
$
—

 
$
327

 
$
8,864

 
$
9,191

 
$
88,763

 
$
97,954

 
$
8,794

 
$
99

Multi-family mortgage
348

 
—

 
—

 
348

 
36,221

 
36,569

 
—

 
—

Construction
—

 
—

 
—

 
—

 
8,441

 
8,441

 
—

 
—

Total commercial real estate loans
348

 
327

 
8,864

 
9,539

 
133,425

 
142,964

 
8,794

 
99

Commercial loans and leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
—

 
—

 
232

 
232

 
18,683

 
18,915

 
26

 
206

Equipment financing
—

 
—

 
7

 
7

 
2,512

 
2,519

 
7

 
—

Total commercial loans and leases
—

 
—

 
239

 
239

 
21,195

 
21,434

 
33

 
206

Consumer loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage
1,892

 
—

 
1,776

 
3,668

 
108,434

 
112,102

 
1,776

 
—

Home equity
548

 
6

 
42

 
596

 
33,547

 
34,143

 
40

 
650

Other consumer
—

 
—

 
—

 
—

 
102

 
102

 
—

 
—

Total consumer loans
2,440

 
6

 
1,818

 
4,264

 
142,083

 
146,347

 
1,816

 
650

Total acquired loans and leases
$
2,788

 
$
333

 
$
10,921

 
$
14,042

 
$
296,703

 
$
310,745

 
$
10,643

 
$
955

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
$
11,003

 
$
4,842

 
$
25,259

 
$
41,104

 
$
6,605,717

 
$
6,646,821

 
$
11,885

 
$
21,628

___________________________________________________________
(1) Loans and leases acquired with deteriorated credit quality are always accruing.

28
Table of Contents
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements (Continued)

 
At December 31, 2018
 
Past Due
 
 
 
 
 
Loans and
Leases Past
Due Greater
Than 90 Days
and Accruing
 
 
 
31-60
Days
 
61-90
Days
 
Greater
Than
90 Days
 
Total
 
Current
 
Total Loans
and Leases
 
 
Nonaccrual
Loans and
Leases
 
(In Thousands)
Originated:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
$
5,139

 
$
896

 
$
2,962

 
$
8,997

 
$
2,199,907

 
$
2,208,904

 
$
277

 
$
3,806

Multi-family mortgage
893

 
—

 
145

 
1,038

 
798,775

 
799,813

 
—

 
330

Construction
297

 
—

 
396

 
693

 
150,445

 
151,138

 
—

 
396

Total commercial real estate loans
6,329

 
896

 
3,503

 
10,728

 
3,149,127

 
3,159,855

 
277

 
4,532

Commercial loans and leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
2,021

 
582

 
6,244

 
8,847

 
703,783

 
712,630

 
1,962

 
6,421

Equipment financing
2,509

 
650

 
5,685

 
8,844

 
969,996

 
978,840

 
12

 
9,500

Condominium association
320

 
—

 
—

 
320

 
50,131

 
50,451

 
—

 
265

Total commercial loans and leases
4,850

 
1,232

 
11,929

 
18,011

 
1,723,910

 
1,741,921

 
1,974

 
16,186

Consumer loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage
400

 
—

 
1,597

 
1,997

 
651,062

 
653,059

 
—

 
1,842

Home equity
761

 
25

 
183

 
969

 
330,045

 
331,014

 
1

 
191

Other consumer
51

 
18

 
15

 
84

 
23,176

 
23,260

 
—

 
17

Total consumer loans
1,212

 
43

 
1,795

 
3,050

 
1,004,283

 
1,007,333

 
1

 
2,050

Total originated loans and leases
$
12,391

 
$
2,171

 
$
17,227

 
$
31,789

 
$
5,877,320

 
$
5,909,109

 
$
2,252

 
$
22,768



29
Table of Contents
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements (Continued)

 
At December 31, 2018
 
Past Due
 
 
 
 
 
Loans and
Leases Past
Due Greater
Than 90 Days
and Accruing
 
 
 
31-60
Days
 
61-90
Days
 
Greater
Than
90 Days
 
Total
 
Current
 
Total Loans
and Leases
 
 
Nonaccrual
Loans and
Leases (1)
 
(In Thousands)
Acquired:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
$
—

 
$
215

 
$
9,087

 
$
9,302

 
$
112,519

 
$
121,821

 
$
9,018

 
$
122

Multi-family mortgage
348

 
—

 
—

 
348

 
47,550

 
47,898

 
—

 
—

Construction
360

 
242

 
—

 
602

 
21,560

 
22,162

 
—

 
—

Total commercial real estate loans
708

 
457

 
9,087

 
10,252

 
181,629

 
191,881

 
9,018

 
122

Commercial loans and leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
124

 
44

 
290

 
458

 
23,330

 
23,788

 
90

 
200

Equipment financing
—

 
—

 
9

 
9

 
3,240

 
3,249

 
9

 
—

Total commercial loans and leases
124

 
44

 
299

 
467

 
26,570

 
27,037

 
99

 
200

Consumer loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage
—

 
371

 
2,113

 
2,484

 
127,425

 
129,909

 
2,113

 
290

Home equity
191

 
265

 
2

 
458

 
45,012

 
45,470

 
—

 
717

Other consumer
—

 
—

 
—

 
—

 
110

 
110

 
—

 
—

Total consumer loans
191

 
636

 
2,115

 
2,942

 
172,547

 
175,489

 
2,113

 
1,007

Total acquired loans and leases
$
1,023

 
$
1,137

 
$
11,501

 
$
13,661

 
$
380,746

 
$
394,407

 
$
11,230

 
$
1,329

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
$
13,414

 
$
3,308

 
$
28,728

 
$
45,450

 
$
6,258,066

 
$
6,303,516

 
$
13,482

 
$
24,097


___________________________________________________________
(1) Loans and leases acquired with deteriorated credit quality are always accruing.


30
Table of Contents
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements (Continued)

Commercial Real Estate Loans—As of September 30, 2019, loans outstanding in the three classes within this segment expressed as a percentage of total loans and leases outstanding were as follows: commercial real estate loans -- 36.7%; multi-family mortgage loans -- 13.9%; and construction loans -- 3.5%.
Loans in this portfolio that are on nonaccrual status and/or risk-rated "substandard" or worse are evaluated on an individual loan basis for impairment. For non-impaired commercial real estate loans, loss factors are applied to outstanding loans by risk rating for each of the three classes in the portfolio. The factors applied are based primarily on historic loan loss experience and an assessment of internal and external factors and other relevant information.
Commercial Loans and Leases—As of September 30, 2019, loans and leases outstanding in the three classes within this segment expressed as a percent of total loans and leases outstanding were as follows: commercial loans and leases -- 11.5%; equipment financing loans -- 15.5%; and loans to condominium associations -- 0.8%.
Loans and leases in this portfolio that are on nonaccrual status and/or risk-rated "substandard" or worse are evaluated on an individual basis for impairment. For non-impaired commercial loans and leases, loss factors are applied to outstanding loans by risk rating for each of the three classes in the portfolio.
Consumer Loans—As of September 30, 2019, loans outstanding within the three classes within this segment expressed as a percent of total loans and leases outstanding were as follows: residential mortgage loans -- 11.9%, home equity loans -- 5.6%, and other consumer loans -- 0.6%.
Significant risk characteristics related to the residential mortgage and home equity loan portfolios are the geographic concentration of the properties financed within selected communities in the greater Boston and Providence metropolitan areas. The payment status and loan-to-value ratio are the primary credit quality indicators used for residential mortgage loans and home equity loans. Generally, loans are not made when the loan-to-value ratio exceeds 80% unless private mortgage insurance is obtained and/or there is a financially strong guarantor. Consumer loans that become 90 or more days past due, or are placed on nonaccrual.
Impaired Loans and Leases
A loan is considered to be impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due (both interest and principal) according to the contractual terms of the loan agreement. The Company has defined the population of impaired loans to include nonaccrual loans and TDR loans.
When the ultimate collectability of the total principal of an impaired loan or lease is in doubt and the loan is on nonaccrual status, all payments are applied to principal, under the cost recovery method. When the ultimate collectability of the total principal of an impaired loan or lease is not in doubt and the loan or lease is on nonaccrual status, contractual interest is credited to interest income when received, under the cash basis method.
The following tables include the recorded investment and unpaid principal balances of impaired loans and leases with the related allowance amount, if applicable, for the originated and acquired loan and lease portfolios at the dates indicated. Also presented are the average recorded investments in the impaired loans and leases and the related amount of interest recognized during the period that the impaired loans were impaired.

31
Table of Contents
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements (Continued)

 
At September 30, 2019
 
At December 31, 2018
 
Recorded
Investment (1)
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Recorded
Investment (2)
 
Unpaid
Principal
Balance
 
Related
Allowance
 
(In Thousands)
Originated:
 
 
 
 
 
 
 
 
 
 
 
With no related allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
$
3,971

 
$
3,962

 
$
—

 
$
5,569

 
$
5,545

 
$
—

Commercial
25,761

 
25,723

 
—

 
30,927

 
31,053

 
—

Consumer
2,625

 
2,612

 
—

 
2,989

 
2,978

 
—

Total originated with no related allowance recorded
32,357

 
32,297

 
—

 
39,485

 
39,576

 
—

With an allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
70

 
70

 
8

 
396

 
396

 
5

Commercial
5,421

 
5,422

 
1,572

 
8,224

 
8,208

 
2,961

Consumer
1,229

 
1,226

 
72

 
665

 
664

 
89

Total originated with an allowance recorded
6,720

 
6,718

 
1,652

 
9,285

 
9,268

 
3,055

Total originated impaired loans and leases
39,077

 
39,015

 
1,652

 
48,770

 
48,844

 
3,055

 
 
 
 
 
 
 
 
 
 
 
 
Acquired:
 
 
 
 
 
 
 
 
 
 
 
With no related allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
14,309

 
14,311

 
—

 
9,538

 
9,538

 
—

Commercial
476

 
476

 
—

 
531

 
531

 
—

Consumer
3,746

 
3,746

 
—

 
4,772

 
4,772

 
—

Total acquired with no related allowance recorded
18,531

 
18,533

 
—

 
14,841

 
14,841

 
—

With an allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
Consumer
451

 
451

 
40

 
154

 
154

 
26

 Total acquired with an allowance recorded
451

 
451

 
40

 
154

 
154

 
26

Total acquired impaired loans and leases
18,982

 
18,984

 
40

 
14,995

 
14,995

 
26

 
 
 
 
 
 
 
 
 
 
 
 
Total impaired loans and leases
$
58,059

 
$
57,999

 
$
1,692

 
$
63,765

 
$
63,839

 
$
3,081

___________________________________________________________________________
(1) Includes originated and acquired nonaccrual loans of $20.7 million and $1.0 million, respectively as of September 30, 2019.

(2) Includes originated and acquired nonaccrual loans of $22.7 million and $1.3 million, respectively as of December 31, 2018.

32
Table of Contents
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements (Continued)

 
Three Months Ended
 
September 30, 2019
 
September 30, 2018
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
(In Thousands)
Originated:
 
 
 
 
 
 
 
With no related allowance recorded:
 
 
 
 
 
 
 
Commercial real estate
$
3,964

 
$
15

 
$
5,717

 
$
19

Commercial
26,826

 
206

 
22,938

 
195

Consumer
2,638

 
10

 
2,711

 
15

Total originated with no related allowance recorded
33,428

 
231

 
31,366

 
229

With an allowance recorded:
 
 
 
 
 
 
 
Commercial real estate
70

 
1

 
—

 
—

Commercial
5,511

 
27

 
9,052

 
29

Consumer
1,231

 
13

 
1,375

 
3

Total originated with an allowance recorded
6,812

 
41

 
10,427

 
32

Total originated impaired loans and leases
40,240

 
272

 
41,793

 
261

 
 
 
 
 
 
 
 
Acquired:
 
 
 
 
 
 
 
With no related allowance recorded:
 
 
 
 
 
 
 
Commercial real estate
14,316

 
91

 
9,222

 
1

Commercial
486

 
4

 
1,118

 
4

Consumer
3,759

 
12

 
5,430

 
15

Total acquired with no related allowance recorded
18,561

 
107

 
15,770

 
20

With an allowance recorded:
 
 
 
 
 
 
 
Consumer
452

 
5

 
158

 
1

  Total acquired with an allowance recorded
452

 
5

 
158

 
1

Total acquired impaired loans and leases
19,013

 
112

 
15,928

 
21

 
 
 
 
 
 
 
 
Total impaired loans and leases
$
59,253

 
$
384

 
$
57,721

 
$
282




33
Table of Contents
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements (Continued)

 
Nine Months Ended
 
September 30, 2019
 
September 30, 2018
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
(In Thousands)
Originated:
 
 
 
 
 
 
 
With no related allowance recorded:
 
 
 
 
 
 
 
Commercial real estate
$
5,543

 
$
95

 
$
6,756

 
$
68

Commercial
29,605

 
759

 
24,641

 
682

Consumer
2,669

 
28

 
2,692

 
42

Total originated with no related allowance recorded
37,817

 
882

 
34,089

 
792

With an allowance recorded:
 
 
 
 
 
 
 
Commercial real estate
336

 
2

 
—

 
—

Commercial
7,482

 
55

 
9,261

 
73

Consumer
852

 
19

 
892

 
5

Total originated with an allowance recorded
8,670

 
76

 
10,153

 
78

Total originated impaired loans and leases
46,487

 
958

 
44,242

 
870

 
 
 
 
 
 
 
 
Acquired:
 
 
 
 
 
 
 
With no related allowance recorded:
 
 
 
 
 
 
 
Commercial real estate
10,874

 
94

 
9,975

 
3

Commercial
535

 
8

 
1,438

 
12

Consumer
4,548

 
27

 
5,133

 
45

Total acquired with no related allowance recorded
15,957

 
129

 
16,546

 
60

With an allowance recorded:
 
 
 
 
 
 
 
Consumer
253

 
6

 
128

 
3

  Total acquired with an allowance recorded
253

 
6

 
128

 
3

Total acquired impaired loans and leases
16,210

 
135

 
16,674

 
63

 
 
 
 
 
 
 
 
Total impaired loans and leases
$
62,697

 
$
1,093

 
$
60,916

 
$
933




34
Table of Contents
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements (Continued)

The following tables present information regarding impaired and non-impaired loans and leases at the dates indicated:
 
At September 30, 2019
 
Commercial Real Estate
 
Commercial
 
Consumer
 
Total
 
(In Thousands)
Allowance for Loan and Lease Losses:
 
 
 
 
 
 
 
Originated:
 
 
 
 
 
 
 
Individually evaluated for impairment
$
8

 
$
1,572

 
$
72

 
$
1,652

Collectively evaluated for impairment
27,507

 
22,439

 
5,582

 
55,528

Total originated loans and leases
27,515

 
24,011

 
5,654

 
57,180

 
 
 
 
 
 
 
 
Acquired:
 
 
 
 
 
 
 
Individually evaluated for impairment
—

 
—

 
40

 
40

Collectively evaluated for impairment
63

 
276

 
16

 
355

Acquired with deteriorated credit quality
1,451

 
106

 
3

 
1,560

Total acquired loans and leases
1,514

 
382

 
59

 
1,955

 
 
 
 
 
 
 
 
Total allowance for loan and lease losses
$
29,029

 
$
24,393

 
$
5,713

 
$
59,135

 
 
 
 
 
 
 
 
Loans and Leases:
 
 
 
 
 
 
 
Originated:
 
 
 
 
 
 
 
Individually evaluated for impairment
$
3,811

 
$
23,124

 
$
3,743

 
$
30,678

Collectively evaluated for impairment
3,442,676

 
1,805,830

 
1,056,892

 
6,305,398

Total originated loans and leases
3,446,487

 
1,828,954

 
1,060,635

 
6,336,076

 
 
 
 
 
 
 
 
Acquired:
 
 
 
 
 
 
 
Individually evaluated for impairment
4,870

 
405

 
1,869

 
7,144

Collectively evaluated for impairment
80,889

 
19,035

 
118,143

 
218,067

Acquired with deteriorated credit quality
57,205

 
1,994

 
26,335

 
85,534

Total acquired loans and leases
142,964

 
21,434

 
146,347

 
310,745

 
 
 
 
 
 
 
 
Total loans and leases
$
3,589,451

 
$
1,850,388

 
$
1,206,982

 
$
6,646,821




35
Table of Contents
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements (Continued)

 
At December 31, 2018
 
Commercial Real Estate
 
Commercial
 
Consumer
 
Total
 
(In Thousands)
Allowance for Loan and Lease Losses:
 
 
 
 
 
 
 
Originated:
 
 
 
 
 
 
 
Individually evaluated for impairment
$
5

 
$
2,961

 
$
89

 
$
3,055

Collectively evaluated for impairment
26,617

 
22,131

 
5,075

 
53,823

Total originated loans and leases
26,622

 
25,092

 
5,164

 
56,878

 
 
 
 
 
 
 
 
Acquired:
 
 
 
 
 
 
 
Individually evaluated for impairment
—

 
—

 
26

 
26

Collectively evaluated for impairment
32

 
83

 
20

 
135

Acquired with deteriorated credit quality
1,533

 
108

 
12

 
1,653

Total acquired loans and leases
1,565

 
191

 
58

 
1,814

 
 
 
 
 
 
 
 
Total allowance for loan and lease losses
$
28,187

 
$
25,283

 
$
5,222

 
$
58,692

 
 
 
 
 
 
 
 
Loans and Leases:
 
 
 
 
 
 
 
Originated:
 
 
 
 
 
 
 
Individually evaluated for impairment
$
5,610

 
$
32,127

 
$
3,502

 
$
41,239

Collectively evaluated for impairment
3,154,245

 
1,709,794

 
1,003,831

 
5,867,870

Total originated loans and leases
3,159,855

 
1,741,921

 
1,007,333

 
5,909,109

 
 
 
 
 
 
 
 
Acquired:
 
 
 
 
 
 
 
Individually evaluated for impairment
—

 
404

 
2,072

 
2,476

Collectively evaluated for impairment
121,119

 
24,094

 
142,194

 
287,407

Acquired with deteriorated credit quality
70,762

 
2,539

 
31,223

 
104,524

Total acquired loans and leases
191,881

 
27,037

 
175,489

 
394,407

 
 
 
 
 
 
 
 
Total loans and leases
$
3,351,736

 
$
1,768,958

 
$
1,182,822

 
$
6,303,516



36
Table of Contents
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements (Continued)

Troubled Debt Restructured Loans and Leases
A specific valuation allowance for losses on TDR loans is determined by comparing the net carrying amount of the TDR loan with the restructured loan's cash flows discounted at the original effective rate.
The following table sets forth information regarding TDR loans and leases at the dates indicated:
 
At September 30, 2019

At December 31, 2018
 
(In Thousands)
Troubled debt restructurings:
 
 
 
On accrual
$
22,233

 
$
12,257

On nonaccrual
5,763

 
8,684

Total troubled debt restructurings
$
27,996

 
$
20,941



Total TDR loans and leases increased by $7.1 million to $28.0 million at September 30, 2019 from $20.9 million at December 31, 2018, driven primarily by new troubled debt restructurings on the commercial, equipment financing and construction relationships, partially offset by the payoff of a commercial relationship.
The recorded investment in TDR loans and the associated specific allowances for loan and lease losses, in the originated and acquired loan and lease portfolios, that were modified during the periods indicated, are as follows.
 
At and for the Three Months Ended September 30, 2019
 
 
 
Recorded Investment
 
Specific
Allowance for
Loan and
Lease Losses
 
 
 
Defaulted (1)
 
Number of
Loans/
Leases
 
At
Modification
 
At End of
Period
 
 
Nonaccrual
Loans and
Leases
 
Number of
Loans/
Leases
 
Recorded
Investment
 
(Dollars in Thousands)
Originated:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
—

 
$
—

 
$
—

 
$
—

 
$
—

 
1

 
$
367

Equipment financing
2

 
1,405

 
1,399

 
30

 
49

 
1

 
155

Residential mortgage
3

 
869

 
866

 
29

 
343

 
—

 
—

Home equity
2

 
251

 
252

 
2

 
—

 
—

 
—

Total originated
7

 
$
2,525

 
$
2,517

 
$
61

 
$
392

 
2

 
$
522

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquired:
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction
1

 
4,870

 
4,870

 
$
—

 
 
 
 
 
 
Residential mortgage
1

 
297

 
297

 
12

 
—

 
—

 
—

Total acquired
2

 
5,167

 
5,167

 
12

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
9

 
$
7,692

 
$
7,684

 
$
73

 
$
392

 
2

 
$
522

______________________________________________________________________
(1) Includes loans and leases that have been modified within the past twelve months and subsequently had payment defaults during the period indicated.

37
Table of Contents
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements (Continued)

 
At and for the Three Months Ended September 30, 2018
 
 
 
Recorded Investment
 
Specific
Allowance for
Loan and
Lease Losses
 
 
 
Defaulted (1)
 
Number of
Loans/
Leases
 
At
Modification
 
At End of
Period
 
 
Nonaccrual
Loans and
Leases
 
Number of
Loans/
Leases
 
Recorded
Investment
 
(Dollars in Thousands)
Originated:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
1

 
$
137

 
$
136

 
$
102

 
$
136

 
$
2

 
$
1,086

Residential mortgage
1

 
209

 
209

 
12

 
—

 
—

 
—

Total originated
2

 
$
346

 
$
345

 
$
114

 
$
136

 
2

 
$
1,086

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
2

 
$
346

 
$
345

 
$
114

 
$
136

 
2

 
$
1,086

______________________________________________________________________
(1) Includes loans and leases that have been modified within the past twelve months and subsequently had payment defaults during the period indicated.

 
At and for the Nine Months Ended September 30, 2019
 
 
 
Recorded Investment
 
Specific
Allowance for
Loan and
Lease Losses
 
 
 
 
 
Defaulted (1)
 
Number of
Loans/
Leases
 
At
Modification
 
At End of
Period
 
 
Nonaccrual
Loans and
Leases
 
Additional
Commitment
 
Number of
Loans/
Leases
 
Recorded
Investment
 
(Dollars in Thousands)
Originated:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
1

 
$
73

 
$
70

 
$
8

 
$
—

 
$
—

 
$
—

 
$
—

Commercial
3

 
6,793

 
7,146

 
—

 
—

 
766

 
1

 
367

Equipment financing
7

 
2,775

 
2,458

 
376

 
1,056

 
—

 
—

 
—

Residential mortgage
3

 
869

 
866

 
29

 
343

 
—

 
—

 
—

Home equity
2

 
251

 
252

 
2

 
—

 
—

 
—

 
—

Total originated
16

 
$
10,761

 
$
10,792

 
$
415

 
$
1,399

 
766

 
1

 
$
367

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquired:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction
1

 
4,870

 
4,870

 
$
—

 
—

 
—

 
—

 
—

Residential mortgage
1

 
297

 
297

 
12

 
—

 
—

 
—

 
—

Total acquired
2

 
5,167

 
5,167

 
12

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
18

 
$
15,928

 
$
15,959

 
$
427

 
$
1,399

 
$
766

 
1

 
$
367

______________________________________________________________________
(1) Includes loans and leases that have been modified within the past twelve months and subsequently had payment defaults during the period indicated.


38
Table of Contents
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements (Continued)

 
At and for the Nine Months Ended September 30, 2018
 
 
 
Recorded Investment
 
Specific
Allowance for
Loan and
Lease Losses
 
 
 
 
 
Defaulted (1)
 
Number of
Loans/
Leases
 
At
Modification
 
At End of
Period
 
 
Nonaccrual
Loans and
Leases
 
Additional
Commitment
 
Number of
Loans/
Leases
 
Recorded
Investment
 
(Dollars in Thousands)
Originated:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
1

 
$
673

 
$
653

 
$
—

 
$
653

 
—

 
—

 
$
—

Commercial
10

 
1,911

 
1,867

 
856

 
1,867

 
—

 
2

 
1,086

Equipment financing
11

 
2,271

 
2,021

 
29

 
199

 
—

 
—

 
—

Residential mortgage
1

 
209

 
209

 
12

 
—

 
—

 
—

 
—

Home equity
1

 
86

 
84

 
—

 
—

 
—

 
—

 
—

Total originated
24

 
5,150

 
4,834

 
897

 
2,719

 
—

 
2

 
1,086

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquired:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Home equity
1

 
125

 
123

 
—

 
123

 
—

 
—

 
—

Total acquired
1

 
125

 
123

 
—

 
123

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans and leases
25

 
$
5,275

 
$
4,957

 
$
897

 
$
2,842

 
—

 
2

 
$
1,086

______________________________________________________________________
(1) Includes loans and leases that have been modified within the past twelve months and subsequently had payment defaults during the period indicated.
The following table sets forth the Company's end-of-period balances for TDRs that were modified during the periods indicated, by type of modification.
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
 
(In Thousands)
Loans with one modification:
 
 
 
 
 
 
 
Extended maturity
$
4,919

 
$
—

 
$
12,098

 
$
1,419

Adjusted interest rate
252

 
—

 
252

 
—

Combination maturity, principal, interest rate
2,513

 
345

 
3,609

 
3,454

Total loans with one modification
7,684

 
345

 
15,959

 
4,873

 
 
 
 
 
 
 
 
Loans with more than one modification:
 
 
 
 
 
 
 
Combination maturity, principal, interest rate
—

 
—

 
—

 
84

Total loans with more than one modification
—

 
—

 
—

 
84

 
 
 
 
 
 
 
 
Total loans with modifications
$
7,684

 
$
345

 
$
15,959

 
$
4,957


The TDR loans and leases that were modified for the three months ended September 30, 2019 and 2018 were $7.7 million and $0.3 million, respectively. The increase in TDR loans and leases that were modified for the three months ended September 30, 2019 was primarily due to the increases in modifications on the construction and equipment financing loans.
The TDR loans and leases that were modified for the nine months ended September 30, 2019 and 2018 were $16.0 million and $5.0 million, respectively. The increase in TDR loans and leases that were modified for the nine months ended September 30, 2019 was primarily due to the increase in modifications on the construction, commercial, and equipment financing loans.

39
Table of Contents
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements (Continued)

There were no TDR loans and leases with more than one modification during the three and nine months ended September 30, 2019. There were no TDR loan and leases with more than one modification during the three months ended September 30, 2018. There was 1 TDR loan and lease with more than one modification during the nine months ended September 30, 2018.
The net charge-offs for performing and nonperforming TDR loans and leases for the three and nine months ended September 30, 2019 were $0.1 million and $1.9 million, respectively. The net charge-offs for performing and nonperforming TDR loans and leases for the three and nine months ended September 30, 2018 were $35 thousand and $0.7 million, respectively.
The commitments to lend funds to debtors owing receivables whose terms had been modified in TDRs as of September 30, 2019 was $1.4 million. As of September 30, 2018, there were no commitments to lend funds to debtors owing receivables whose terms had been modified in TDRs.
(6) Goodwill and Other Intangible Assets
The following table sets forth the carrying value of goodwill and other intangible assets at the dates indicated:
 
At September 30, 2019
 
At December 31, 2018
 
(In Thousands)
Goodwill (beginning)
$
160,427

 
$
137,890

Additions
—

 
22,537

Balance at end of period
160,427

 
160,427

Other intangible assets:
 
 
 
Core deposits
3,754

 
4,997

Trade name
1,089

 
1,089

Total other intangible assets
4,843

 
6,086

Total goodwill and other intangible assets
$
165,270

 
$
166,513


At December 31, 2013, the Company concluded that the BankRI name would continue to be utilized in its marketing strategies; therefore, the trade name with carrying value of $1.1 million, has an indefinite life and ceased to amortize.
The weighted-average amortization period for the core deposit intangible is 7.0 years.
The estimated aggregate future amortization expense (in thousands) for other intangible assets for each of the next five years and thereafter is as follows:
Remainder of 2019
$
456

Year ending:
 
2020
1,261

2021
850

2022
494

2023
263

2024
153

Thereafter
277

Total
$
3,754


(7) Accumulated Other Comprehensive Income (Loss)
For the three and nine months ended September 30, 2019 and 2018, the Company’s accumulated other comprehensive income (loss) includes the following two components: (i) unrealized holding gains (losses) on investment securities available-for-sale; and (ii) adjustment of accumulated obligation for postretirement benefits.

40
Table of Contents
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements (Continued)

 
Changes in accumulated other comprehensive income (loss) by component, net of tax, were as follows for the periods indicated:
 
Three Months Ended September 30, 2019
 
Investment
Securities
 Available-for-Sale
 
Postretirement
Benefits
 
Accumulated Other
Comprehensive
Loss
 
(In Thousands)
Balance at June 30, 2019
$
889

 
$
252

 
$
1,141

Other comprehensive income (loss)
1,634

 
—

 
1,634

Balance at September 30, 2019
$
2,523

 
$
252

 
$
2,775

 
Three Months Ended September 30, 2018
 
Investment
Securities
 Available-for-Sale
 
Postretirement
Benefits
 
Accumulated Other
Comprehensive
Loss
 
(In Thousands)
Balance at June 30, 2018
$
(13,578
)
 
$
163

 
$
(13,415
)
Other comprehensive income (loss)
(2,184
)
 
—

 
(2,184
)
Balance at September 30, 2018
$
(15,762
)
 
$
163

 
$
(15,599
)

 
Nine Months Ended September 30, 2019
 
Investment
Securities
 Available-for-Sale
 
Postretirement
Benefits
 
Accumulated Other
Comprehensive
Loss
 
(In Thousands)
Balance at December 31, 2018
$
(9,712
)
 
$
252

 
$
(9,460
)
Other comprehensive (loss) income
12,235

 
—

 
12,235

Balance at September 30, 2019
$
2,523

 
$
252

 
$
2,775

 
Nine Months Ended September 30, 2018
 
Investment
Securities
 Available-for-Sale
 
Postretirement
Benefits
 
Accumulated Other
Comprehensive
Loss
 
(In Thousands)
Balance at December 31, 2017
$
(6,113
)
 
$
163

 
$
(5,950
)
Other comprehensive loss before reclassifications
(9,702
)
 
—

 
(9,702
)
Less: amounts reclassified from accumulated other comprehensive loss
(53
)
 
—

 
(53
)
Balance at September 30, 2018
$
(15,762
)
 
$
163

 
$
(15,599
)

The Company did not reclassify any amounts out of accumulated other comprehensive income (loss) for the three months ended September 30, 2019 and September 30, 2018. The Company did not reclassify any amounts out of accumulated other comprehensive income (loss) for the nine months ended September 30, 2019 as compared to $53 thousand during the nine months ended September 30, 2018.
(8) Derivatives and Hedging Activities
The Company utilizes loan level derivatives which consist of interest-rate contracts (swaps, caps and floors), and risk participation agreements as part of the Company's interest-rate risk management strategy for certain assets and liabilities and not for speculative purposes. Based on the Company's intended use for the loan level derivatives at inception, the Company designates the derivative as either an economic hedge of an asset or liability, or a hedging instrument subject to the hedge accounting provisions of FASB ASC Topic 815, "Derivatives and Hedging".

41
Table of Contents
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements (Continued)

Interest-rate swap, cap and floor agreements are entered into as hedges against future interest-rate fluctuations on specifically identified assets or liabilities. The Company did not have derivative fair value hedges or derivative cash flow hedges as of September 30, 2019 or December 31, 2018.
Derivatives not designated as hedges are not speculative but rather result from a service the Company provides to certain customers for a fee. The Company executes loan level derivative products such as interest-rate swap agreements with commercial banking customers to aid them in managing their interest-rate risk. The interest-rate swap contracts allow the commercial banking customers to convert floating-rate loan payments to fixed-rate loan payments. The Company concurrently enters into offsetting swaps with a third party financial institution, effectively minimizing its net risk exposure resulting from such transactions. The third-party financial institution exchanges the customer's fixed-rate loan payments for floating-rate loan payments. As the interest-rate swap agreements associated with this program do not meet hedge accounting requirements, changes in the fair value are recognized directly in earnings.
The Company utilizes risk participation agreements with other banks participating in commercial loan arrangements. Participating banks guarantee the performance on borrower-related interest rate swap contracts. Risk participation agreements are derivative financial instruments and are recorded at fair value. These derivatives are not designated as hedges and therefore, changes in fair value are recorded directly through earnings at each reporting period.
Under a risk participation-out agreement, a derivative asset, the Company participates out a portion of the credit risk associated with the interest rate swap position executed with the commercial borrower, for a fee paid to the participating bank. Under a risk participation-in agreement, a derivative liability, the Company assumes, or participates in, a portion of the credit risk associated with the interest rate swap position with the commercial borrower, for a fee received from the other bank.
The Company offers foreign exchange contracts to commercial borrowers to accommodate their business needs. These foreign exchange contracts do not qualify as hedges for accounting purposes. To mitigate the market and liquidity risk associated with these foreign exchange contracts, the Company enters into similar offsetting positions.
Asset derivatives and liability derivatives are included in other assets and accrued expenses and other liabilities on the unaudited consolidated balance sheets.
The following tables presents the Company's customer related derivative positions for the periods indicated below for those derivatives not designated as hedging.
 
Notional Amount Maturing
 
Number of Positions
 
Less than 1 year
 
Less than 2 years
 
Less than 3 years
 
Less than 4 years
 
Thereafter
 
Total
 
Fair Value
 
September 30, 2019
 
(Dollars In Thousands)
Loan level derivatives
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Receive fixed, pay variable
110

 
$
—

 
$
25,196

 
$
8,896

 
$
34,322

 
$
924,062

 
$
992,476

 
$
79,661

Pay fixed, receive variable
110

 
—

 
25,196

 
8,896

 
34,322

 
924,062

 
992,476

 
79,661

Risk participation-out agreements
35

 
—

 
14,203

 
—

 
—

 
162,952

 
177,155

 
1,555

Risk participation-in agreements
7

 
—

 
—

 
—

 
—

 
56,096

 
56,096

 
385

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange contracts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Buys foreign currency, sells U.S. currency
18

 
$
1,315

 
$
—

 
$
—

 
$
—

 
$
—

 
$
1,315

 
$
22

Sells foreign currency, buys U.S. currency
20

 
1,420

 
—

 
—

 
—

 
—

 
1,420

 
16



42
Table of Contents
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements (Continued)

 
Notional Amount Maturing
 
Number of Positions
 
Less than 1 year
 
Less than 2 years
 
Less than 3 years
 
Less than 4 years
 
Thereafter
 
Total
 
Fair Value
 
December 31, 2018
 
(Dollars In Thousands)
Loan level derivatives
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Receive fixed, pay variable
86

 
$
1,931

 
$
26,419

 
$
—

 
$
31,762

 
$
654,388

 
$
714,500

 
$
6,081

Pay fixed, receive variable
86

 
1,931

 
26,419

 
—

 
31,762

 
654,388

 
714,500

 
6,081

Risk participation-out agreements
26

 
—

 
14,892

 
—

 
—

 
85,639

 
100,531

 
344

Risk participation-in agreements
5

 
—

 
—

 
—

 
—

 
35,838

 
35,838

 
84

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange contracts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Buys foreign currency, sells U.S. currency
22

 
$
6,573

 
$
—

 
$
—

 
$
—

 
$
—

 
$
6,573

 
$
123

Sells foreign currency, buys U.S. currency
37

 
6,582

 
—

 
—

 
—

 
—

 
6,582

 
131


Certain derivative agreements contain provisions that require the Company to post collateral if the derivative exposure exceeds a threshold amount. The Company posted collateral to dealer counterparties of $93.4 million and $5.9 million in the normal course of business as of September 30, 2019 and December 31, 2018, respectively. Dealer counterparties posted no collateral to the Company in the normal course of business as of September 30, 2019 and December 31, 2018.
The tables below present the offsetting of derivatives and amounts subject to master netting agreements not offset in the unaudited consolidated balance sheet at the dates indicated.
 
At September 30, 2019
 
Gross
Amounts Recognized
 
Gross Amounts
Offset in the
Statement of Financial Position
 
Net Amounts  Presented in the Statement of Financial Position
 
Gross Amounts Not Offset in the
Statement of Financial Position
 
Net Amount
 
 
 
 
Financial Instruments Pledged
 
Cash Collateral Pledged
 
 
(In Thousands)
Asset derivatives
 
 
 
 
 
 
 
 
 
 
 
Loan level derivatives
$
79,857

 
$
—

 
$
79,857

 
$
—

 
$
—

 
$
79,857

Risk participation-out agreements
1,555

 
—

 
1,555

 
—

 
—

 
1,555

Foreign exchange contracts
22

 
—

 
22

 
—

 
—

 
22

Total
$
81,434

 
$
—

 
$
81,434

 
$
—

 
$
—

 
$
81,434

 
 
 
 
 
 
 
 
 
 
 
 
Liability derivatives
 
 
 
 
 
 
 
 
 
 
 
Loan level derivatives
$
79,857

 
$
—

 
$
79,857

 
$
52,488

 
$
40,870

 
$
(13,501
)
Risk participation-in agreements
385

 
—

 
385

 
—

 
—

 
385

Foreign exchange contracts
16

 
—

 
16

 
—

 
—

 
16

Total
$
80,258

 
$
—

 
$
80,258

 
$
52,488

 
$
40,870

 
$
(13,100
)

43
Table of Contents
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements (Continued)

 
At December 31, 2018
 
Gross
Amounts Recognized
 
Gross Amounts
Offset in the
Statement of Financial Position
 
Net Amounts  Presented in the Statement of Financial Position
 
Gross Amounts Not Offset in the
Statement of Financial Position
 
Net Amount
 
 
 
 
Financial Instruments Pledged
 
Cash Collateral Pledged
 
 
(In Thousands)
Asset derivatives
 
 
 
 
 
 
 
 
 
 
 
Loan level derivatives
$
22,013

 
$
—

 
$
22,013

 
$
—

 
$
50

 
$
21,963

Risk participation-out agreements
344

 
—

 
344

 
—

 
—

 
344

Foreign exchange contracts
131

 
—

 
131

 
—

 
—

 
131

Total
$
22,488

 
$
—

 
$
22,488

 
$
—

 
$
50

 
$
22,438

 
 
 
 
 
 
 
 
 
 
 
 
Liability derivatives
 
 
 
 
 
 
 
 
 
 
 
Loan level derivatives
$
22,013

 
$
—

 
$
22,013

 
$
5,877

 
$
—

 
$
16,136

Risk participation-in agreements
84

 
—

 
84

 
—

 
—

 
84

Foreign exchange contracts
123

 
—

 
123

 
—

 
—

 
123

Total
$
22,220

 
$
—

 
$
22,220

 
$
5,877

 
$
—

 
$
16,343


The Company has agreements with certain of its derivative counterparties that contain credit-risk-related contingent provisions. These provisions provide the counterparty with the right to terminate its derivative positions and require the Company to settle its obligations under the agreements if the Company defaults on certain of its indebtedness or if the Company fails to maintain its status as a well-capitalized institution.
(9) Stock Based Compensation
As of September 30, 2019, the Company had 2 active recognition and retention plans: the 2011 Restricted Stock Award Plan ("2011 RSA") with 500,000 authorized shares and the 2014 Equity Incentive Plan ("2014 Plan") with 1,750,000 authorized shares. The 2011 RSA and the 2014 Plan are collectively referred to as the "Plans". The purpose of the Plans is to promote the long-term financial success of the Company and its subsidiaries by providing a means to attract, retain and reward individuals who contribute to such success and to further align their interests with those of the Company's stockholders.
Of the awarded shares, generally 50% vest ratably over three years with one-third of such shares vesting at each of the first, second and third anniversary dates of the awards. These are referred to as "time-based shares". The remaining 50% of each award has a cliff vesting schedule and will vest three years after the award date based on the level of the Company's achievement of identified performance targets in comparison to the level of achievement of such identified performance targets by a defined peer group comprised of 45 financial institutions. These are referred to as "performance-based shares". If a participant leaves the Company prior to the third anniversary date of an award, any unvested shares are usually forfeited. Dividends declared with respect to shares awarded will be held by the Company and paid to the participant only when the shares vest.
Under all the Plans, shares of the Company's common stock were reserved for issuance as restricted stock awards to officers, employees, and non-employee directors of the Company. Shares issued upon vesting may be either authorized but unissued shares or reacquired shares held by the Company as treasury shares. Any shares not issued because vesting requirements are not met will be retired back to treasury and be made available again for issuance under the Plans.
During the three and nine months ended September 30, 2019, 212,460 shares were issued upon satisfaction of required conditions of the Plans. During the three and nine months ended September 30, 2018, 119,040 shares were issued upon satisfaction of required conditions of the Plans.

44
Table of Contents
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements (Continued)

Total expense for the Plans was $0.8 million and $0.7 million for the three months ended September 30, 2019 and 2018, respectively. Total expense for the Plans was $2.5 million and $1.8 million for the nine months ended September 30, 2019 and 2018, respectively.
(10) Earnings per Share ("EPS")
The following table is a reconciliation of basic EPS and diluted EPS:
 
Three Months Ended
 
September 30, 2019
 
September 30, 2018
 
Basic
 
Fully
Diluted
 
Basic
 
Fully
Diluted
 
(Dollars in Thousands, Except Per Share Amounts)
Numerator:
 
 
 
 
 
 
 
Net income
$
22,596

 
$
22,596

 
$
22,460

 
$
22,460

 
 
 
 
 
 
 
 
Denominator:
 
 
 
 
 
 
 
Weighted average shares outstanding
79,700,403

 
79,700,403

 
80,315,050

 
80,315,050

Effect of dilutive securities
—

 
183,107

 
—

 
200,417

Adjusted weighted average shares outstanding
79,700,403

 
79,883,510

 
80,315,050

 
80,515,467

 
 
 
 
 
 
 
 
EPS
$
0.28

 
$
0.28

 
$
0.28

 
$
0.28



 
Nine Months Ended
 
September 30, 2019
 
September 30, 2018
 
Basic
 
Fully
Diluted
 
Basic
 
Fully
Diluted
 
(Dollars in Thousands, Except Per Share Amounts)
Numerator:
 
 
 
 
 
 
 
Net income
$
65,534

 
$
65,534

 
$
61,924

 
$
61,924

 
 
 
 
 
 
 
 
Denominator:
 
 
 
 
 
 
 
Weighted average shares outstanding
79,676,456

 
79,676,456

 
79,471,238

 
79,471,238

Effect of dilutive securities
—

 
191,227

 
—

 
269,754

Adjusted weighted average shares outstanding
79,676,456

 
79,867,683

 
79,471,238

 
79,740,992

 
 
 
 
 
 
 
 
EPS
$
0.82

 
$
0.82

 
$
0.78

 
$
0.78


(11) Fair Value of Financial Instruments
A description of the valuation methodologies used for assets and liabilities measured at fair value on a recurring and non-recurring basis, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. There were no changes in the valuation techniques used during the three and nine months ended September 30, 2019 and 2018.

45
Table of Contents
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements (Continued)

Assets and Liabilities Recorded at Fair Value on a Recurring Basis
The following tables set forth the carrying value of assets and liabilities measured at fair value on a recurring basis at the dates indicated:
 
Carrying Value as of September 30, 2019
 
Level 1
 
Level 2
 
Level 3
 
Total
 
(In Thousands)
Assets:
 

 
 

 
 

 
 

Investment securities available-for-sale:
 
 
 
 
 
 
 
GSE debentures
$
—

 
$
186,170

 
$
—

 
$
186,170

GSE CMOs
—

 
91,851

 
—

 
91,851

GSE MBSs
—

 
142,079

 
—

 
142,079

SBA commercial loan asset-backed securities
—

 
37

 
—

 
37

Corporate debt obligations
—

 
32,981

 
—

 
32,981

U.S. Treasury bonds
—

 
14,221

 
—

 
14,221

Total investment securities available-for-sale
$
—

 
$
467,339

 
$
—

 
$
467,339

Equity securities held-for-trading
$
3,567

 
$
1,014

 
$
—

 
$
4,581

Loan level derivatives
—

 
79,857

 
—

 
79,857

Risk participation-out agreements
—

 
1,555

 
—

 
1,555

Foreign exchange contracts
—

 
22

 
—

 
22

Liabilities:
 
 
 
 
 
 
 
Loan level derivatives
$
—

 
$
79,857

 
$
—

 
$
79,857

Risk participation-in agreements
—

 
385

 
—

 
385

Foreign exchange contracts
—

 
16

 
—

 
16

 
Carrying Value as of December 31, 2018
 
Level 1
 
Level 2
 
Level 3
 
Total
 
(In Thousands)
Assets:
 
 
 
 
 
 
 
Investment securities available-for-sale:
 
 
 
 
 
 
 
GSE debentures
$
—

 
$
181,079

 
$
—

 
$
181,079

GSE CMOs
—

 
103,130

 
—

 
103,130

GSE MBSs
—

 
165,089

 
—

 
165,089

SBA commercial loan asset-backed securities
—

 
51

 
—

 
51

Corporate debt obligations
—

 
39,708

 
—

 
39,708

U.S. Treasury bonds
—

 
13,736

 
—

 
13,736

Total investment securities available-for-sale
$
—

 
$
502,793

 
$
—


$
502,793

Equity securities held-for-trading
$
3,235

 
$
972

 
$
—

 
$
4,207

Loan level derivatives
—

 
22,013

 
—

 
22,013

Risk participation-out agreements
—

 
344

 
—

 
344

Foreign exchange contracts
—

 
131

 
—

 
131

Liabilities:
 
 
 
 
 
 


Loan level derivatives
$
—

 
$
22,013

 
$
—

 
$
22,013

Risk participation-in agreements
—

 
84

 
—

 
84

Foreign exchange contracts
—

 
123

 
—

 
123



46
Table of Contents
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements (Continued)

Investment Securities Available-for-Sale
The fair value of investment securities is based principally on market prices and dealer quotes received from third-party and nationally-recognized pricing services for identical investment securities such as U.S. Treasury and agency securities. These prices are validated by comparing the primary pricing source with an alternative pricing source when available. When quoted market prices for identical securities are unavailable, the Company uses market prices provided by independent pricing services based on recent trading activity and other observable information, including but not limited to market interest-rate curves, referenced credit spreads and estimated prepayment speeds where applicable. These investments include GSE debentures, GSE mortgage-related securities, SBA commercial loan asset backed securities, corporate debt securities, and trust preferred securities, all of which are included in Level 2. As of September 30, 2019 and December 31, 2018, no investment securities were valued using pricing models included in Level 3.
Additionally, management reviews changes in fair value from period to period and performs testing to ensure that prices received from the third parties are consistent with management's expectation of the market. Changes in the prices obtained from the pricing service are analyzed from month to month, taking into consideration changes in market conditions including changes in mortgage spreads, changes in U.S. Treasury security yields and changes in generic pricing of 15-year and 30-year securities. Additional analysis may include a review of prices provided by other independent parties, a yield analysis, a review of average life changes using Bloomberg analytics and a review of historical pricing for a particular security.
Equity Securities Held-for-Trading
The fair value of equity securities held-for-trading is based principally on market prices and dealer quotes received from third-party and nationally-recognized pricing services. The Company's equity securities are priced this way and are included in Level 1 and Level 2. These prices are validated by comparing the primary pricing source with an alternative pricing source when available.
Derivatives and Hedging Instruments
The fair values for the interest-rate swap assets and liabilities, risk participation agreements (RPA in/out), and foreign exchange derivatives represent a Level 2 valuation and are based on settlement values adjusted for credit risks associated with the counterparties and the Company and observable market interest rate curves and foreign exchange rates where applicable. Credit risk adjustments consider factors such as the likelihood of default by the Company and its counterparties, its net exposures and remaining contractual life. To date, the Company has not realized any losses due to a counterparty's inability to pay any net uncollateralized position. Refer also to Note 8, "Derivatives and Hedging Activities."
There were no transfers between levels for assets and liabilities recorded at fair value on a recurring basis during the three and nine months ended September 30, 2019 and 2018, respectively.

47
Table of Contents
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements (Continued)

Assets and Liabilities Recorded at Fair Value on a Non-Recurring Basis
Assets and liabilities measured at fair value on a non-recurring basis are summarized below at the dated indicated:
 
Carrying Value as of September 30, 2019
 
Level 1
 
Level 2
 
Level 3
 
Total
 
(In Thousands)
Assets measured at fair value on a non-recurring basis:
 
 
 
 
 
 
 
Collateral-dependent impaired loans and leases
$
—

 
$
—

 
$
2,330

 
$
2,330

OREO
—

 
—

 
201

 
201

Repossessed assets
—

 
1,931

 
—

 
1,931

Total assets measured at fair value on a non-recurring basis
$
—

 
$
1,931

 
$
2,531

 
$
4,462

 
Carrying Value as of December 31, 2018
 
Level 1
 
Level 2
 
Level 3
 
Total
 
(In Thousands)
Assets measured at fair value on a non-recurring basis:
 
 
 
 
 
 
 
Collateral-dependent impaired loans and leases
$
—

 
$
—

 
$
4,203

 
$
4,203

OREO
—

 
—

 
3,054

 
3,054

Repossessed assets
—

 
965

 
—

 
965

Total assets measured at fair value on a non-recurring basis
$
—

 
$
965

 
$
7,257

 
$
8,222


Collateral-Dependent Impaired Loans and Leases
For nonperforming loans and leases where the credit quality of the borrower has deteriorated significantly, fair values of the underlying collateral were estimated using purchase and sales agreements (Level 2), or comparable sales or recent appraisals (Level 3), adjusted for selling costs and other expenses.
Other Real Estate Owned
The Company records OREO at the lower of cost or fair value. In estimating fair value, the Company utilizes purchase and sales agreements (Level 2) or comparable sales, recent appraisals or cash flows discounted at an interest rate commensurate with the risk associated with these cash flows (Level 3), adjusted for selling costs and other expenses.
Repossessed Assets
Repossessed assets are carried at estimated fair value less costs to sell based on auction pricing (Level 2).
The table below presents quantitative information about significant unobservable inputs (Level 3) for assets measured at fair value on a non-recurring basis at the dates indicated.
 
Fair Value
 
Valuation Technique
 
At September 30,
2019
 
At December 31, 2018
 
 
 
(Dollars in Thousands)
 
 
Auction-rate municipal obligations
$
—

 
$
—

 
Discounted cash flow
Collateral-dependent impaired loans and leases
$
2,329

 
$
4,203

 
Appraisal of collateral (1)
Other real estate owned
201

 
3,054

 
Appraisal of collateral (1)
_______________________________________________________________________________
(1) Fair value is generally determined through independent appraisals of the underlying collateral. The Company may also use another available source of collateral assessment to determine a reasonable estimate of the fair value of the collateral. Appraisals may be adjusted by management for qualitative factors such as economic factors and estimated liquidation expenses. The range of the unobservable inputs used may vary but is generally 0% - 10% on the discount for costs to sell and 0% - 15% on appraisal adjustments.

48
Table of Contents
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements (Continued)

Summary of Estimated Fair Values of Financial Instruments
The following table presents the carrying amount, estimated fair value, and placement in the fair value hierarchy of the Company's financial instruments at the dates indicated. This table excludes financial instruments for which the carrying amount approximates fair value. Financial assets for which the fair value approximates carrying value include cash and cash equivalents, restricted equity securities, and accrued interest receivable. Financial liabilities for which the fair value approximates carrying value include non-maturity deposits, short-term borrowings, and accrued interest payable.
 
 
 
 
 
Fair Value Measurements at September 30, 2019
 
Carrying
Value
 
Estimated
Fair Value
 
Level 1
Inputs
 
Level 2
Inputs
 
Level 3
Inputs
 
(In Thousands)
Financial assets:
 
 
 
 
 
 
 
 
 
Investment securities held-to-maturity:
 
 


 
 
 
 
 
 
GSE debentures
$
38,624

 
$
38,734

 
$
—

 
$
38,734

 
$
—

GSE MBSs
9,937

 
9,835

 
—

 
9,835

 
—

Municipal obligations
46,102

 
46,763

 
—

 
46,763

 
—

Foreign government obligations
500

 
470

 
—

 
—

 
470

Loans and leases, net
6,587,686

 
6,627,148

 
—

 
—

 
6,627,148

Restricted equity securities
57,896

 
57,896

 
—

 
—

 
57,896

Financial liabilities:
 
 
 
 
 
 
 
 
 
Certificates of deposits
2,011,622

 
2,016,106

 
—

 
2,016,106

 
—

Borrowed funds
986,405

 
990,173

 
—

 
990,173

 
—


 
 
 
 
 
Fair Value Measurements at December 31, 2018
 
Carrying
Value
 
Estimated
Fair Value
 
Level 1
Inputs
 
Level 2
Inputs
 
Level 3
Inputs
 
(In Thousands)
Financial assets:
 
 
 
 
 
 
 
 
 
Investment securities held-to-maturity:
 
 
 
 
 
 
 
 
 
GSE debentures
$
50,546

 
$
49,601

 
$
—

 
$
49,601

 
$
—

GSE MBSs
11,426

 
11,131

 
—

 
11,131

 
—

Municipal obligations
52,304

 
51,598

 
—

 
51,598

 
—

Foreign government obligations
500

 
500

 
—

 
—

 
500

Loans held-for-sale
3,247

 
3,247

 
—

 
3,247

 
—

Loans and leases, net
6,244,824

 
6,154,704

 
—

 
—

 
6,154,704

Restricted equity securities
61,751

 
61,751

 
—

 
—

 
61,751

Financial liabilities:
 
 
 
 
 
 
 
 
 
Certificates of deposit
1,789,165

 
1,778,860

 
—

 
1,778,860

 
—

Borrowed funds
920,542

 
886,545

 
—

 
886,545

 
—


Investment Securities Held-to-Maturity
The fair values of certain investment securities held-to-maturity are estimated using market prices provided by independent pricing services based on recent trading activity and other observable information, including but not limited to market interest-rate curves, referenced credit spreads and estimated prepayment speeds where applicable. These investments include GSE debentures, GSE MBSs, and municipal obligations, all of which are included in Level 2. Additionally, fair values of foreign government obligations are estimated using pricing models and are considered to be Level 3.

49
Table of Contents
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements (Continued)

Loans Held-for-Sale
Fair value is measured using quoted market prices when available and would be categorized as Level 1. If quoted market prices are not available, comparable market values may be utilized. These assets are typically categorized as Level 2.
Loans and Leases
The fair values of performing loans and leases was estimated by segregating the portfolio into its primary loan and lease categories—commercial real estate mortgage, multi-family mortgage, construction, commercial, equipment financing, condominium association, residential mortgage, home equity and other consumer. These categories were further disaggregated based upon significant financial characteristics such as type of interest rate (fixed / variable) and payment status (current / past-due). Using the exit price valuation method, the Company discounts the contractual cash flows for each loan category using interest rates currently being offered for loans with similar terms to borrowers of similar quality and incorporates estimates of future loan prepayments.
Restricted Equity Securities
The fair values of certain restricted equity securities are estimated using observable inputs adjusted for other unobservable information, including but not limited to probability assumptions and similar discounts where applicable. These restricted equity securities are considered to be Level 3.
Deposits
The fair values of deposit liabilities with no stated maturity (demand, NOW, savings and money market savings accounts) are equal to the carrying amounts payable on demand. The fair value of certificates of deposit represents contractual cash flows discounted using interest rates currently offered on deposits with similar characteristics and remaining maturities. The fair value estimates for deposits do not include the benefit that results from the low-cost funding provided by the Company's core deposit relationships (deposit-based intangibles).
Borrowed Funds
The fair value of federal funds purchased is equal to the amount borrowed. The fair value of FHLBB advances and repurchase agreements represents contractual repayments discounted using interest rates currently available for borrowings with similar characteristics and remaining maturities. The fair values reported for retail repurchase agreements are based on the discounted value of contractual cash flows. The discount rates used are representative of approximate rates currently offered on borrowings with similar characteristics and maturities. The fair values reported for subordinated deferrable interest debentures are based on the discounted value of contractual cash flows. The discount rates used are representative of approximate rates currently offered on instruments with similar terms and maturities.
(12) Commitments and Contingencies
Off-Balance Sheet Financial Instruments
The Company is party to off-balance sheet financial instruments in the normal course of business to meet the financing needs of its customers and to reduce its own exposure to fluctuations in interest rates. These financial instruments include loan commitments, standby and commercial letters of credits, and loan level derivatives. According to GAAP, these financial instruments are not recorded in the financial statements until they are funded or related fees are incurred or received.
The contract amounts reflect the extent of the involvement the Company has in particular classes of these instruments. Such commitments involve, to varying degrees, elements of credit risk and interest-rate risk in excess of the amount recognized in the consolidated balance sheets. The Company's exposure to credit loss in the event of non-performance by the counterparty is represented by the fair value of the instruments. The Company uses the same policies in making commitments and conditional obligations as it does for on-balance sheet instruments.

50
Table of Contents
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements (Continued)

Financial instruments with off-balance-sheet risk at the dates indicated follow:
 
At September 30, 2019

At December 31, 2018
 
(In Thousands)
Financial instruments whose contract amounts represent credit risk:
 

 
Commitments to originate loans and leases:
 

 
Commercial real estate
$
75,280


$
76,642

Commercial
77,395


75,713

Residential mortgage
63,229


16,363

Unadvanced portion of loans and leases
795,285


707,997

Unused lines of credit:
 

 
Home equity
515,589


487,476

Other consumer
35,923


50,404

Other commercial
393


347

Unused letters of credit:


 
     Financial standby letters of credit
10,521


11,491

Performance standby letters of credit
3,696


3,075

Commercial and similar letters of credit
4,648


4,573

Loan level derivatives (Notional principal amounts):





Receive fixed, pay variable
992,476


714,500

Pay fixed, receive variable
992,476


714,500

Risk participation-out agreements
177,155


100,531

Risk participation-in agreements
56,096

 
35,838

Foreign exchange contracts (Notional amounts):





Buys foreign currency, sells U.S. currency
1,315


6,573

Sells foreign currency, buys U.S. currency
1,420


6,582


Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require the payment of a fee by the customer. Since some of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer's creditworthiness on a case-by-case basis. The amount of collateral obtained, if any, is based on management's credit evaluation of the borrower.
Standby and commercial letters of credits are conditional commitments issued by the Company to guarantee performance of a customer to a third party. These standby and commercial letters of credit are primarily issued to support the financing needs of the Company's commercial customers. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers.
From time to time, the Company enters into loan level derivatives, risk participation agreements or foreign exchange contracts with commercial customers and third-party financial institutions. These derivatives allow the Company to offer long-term fixed-rate commercial loans while mitigating the interest-rate or foreign exchange risk of holding those loans. In a loan level derivative transaction, the Company lends to a commercial customer on a floating-rate basis and then enters into an loan level derivative with that customer. Concurrently, the Company enters into offsetting swaps with a third-party financial institution, effectively minimizing its net interest-rate risk exposure resulting from such transactions.
The fair value of derivative assets and liabilities was $81.4 million and $80.3 million, respectively, as of September 30, 2019. The fair value of derivative assets and liabilities was $22.5 million and $22.2 million, respectively, as of December 31, 2018.

51
Table of Contents
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements (Continued)

The fair value of foreign exchange assets and liabilities was $22 thousand and $16 thousand, respectively, as of September 30, 2019. The fair value of foreign exchange assets and liabilities was $131 thousand and $123 thousand as of December 31, 2018.
Lease Commitments
The Company leases certain office space under various noncancellable operating leases as well as certain other assets. These leases have original terms ranging from 3 years to over 25 years. Certain leases contain renewal options and escalation clauses which can increase rental expenses based principally on the consumer price index and fair market rental value provisions. All of the Company's current outstanding leases are classified as operating leases.
The Company considered the following criteria when determining whether a contract contains a lease, the existence of an identifiable asset and the right to obtain substantially all of the economic benefits from use of the asset through the period. The Company used the FHLB classic advance rates available as of September 30, 2019 as the discount rate to determine the net present value of the remaining lease payments.
 
At September 30, 2019
 
(In Thousands)
The components of lease expense were as follow:
 
Operating lease cost
$
4,644

 
 
Supplemental cash flow information related to leases was as follows:
 
Cash paid for amounts included in the measurement of lease liabilities:
 
Operating cash flows for operating leases
$
4,658

Right-of-use assets obtained in exchange for new lease obligations:
 
Operating leases
$
72

 
 
Supplemental balance sheet information related to leases was as follows:
 
Operating Leases
 
Operating lease right-of-use assets
$
26,216

Operating lease liabilities
26,216

 
 
Weighted Average Remaining Lease Term
 
Operating leases
7.6 years

 
 
Weighted Average Discount Rate
 
Operating leases
3.2
%


52
Table of Contents
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements (Continued)

A summary of future minimum rental payments under such leases at the dates indicated follows:
 
Minimum Rental Payments
 
September 30, 2019
 
December 31, 2018
 
(In Thousands)
 
 
 
 
Remainder of 2019
$
1,553

 
$
4,224

Year ending:
 
 
 
2020
5,883

 
4,932

2021
5,263

 
4,418

2022
4,575

 
3,602

2023
3,672

 
2,734

2024
2,305

 
1,866

Thereafter
6,163

 
6,637

Total
$
29,414

 
$
28,413

Less imputed interest
(3,198
)
 
 
Present value of lease liability
$
26,216

 
 

Certain leases contain escalation clauses for real estate taxes and other expenditures, which are not included above. The total real estate taxes were $1.4 million and other expenditures were $0.3 million for both the nine months ended September 30, 2019 and 2018. Total rental expense was $1.5 million and $1.6 million for the three months ended September 30, 2019 and 2018, respectively. Total rental expense was $4.6 million for the nine months ended September 30, 2019 and 2018.
Legal Proceedings
In the normal course of business, there are various outstanding legal proceedings. In the opinion of management, after consulting with legal counsel, the consolidated financial position and results of operations of the Company are not expected to be affected materially by the outcome of such proceedings.
(13) Revenue from Contracts with Customers
Overview
Revenue from contracts with customers in the scope of Accounting Standards Codification (“ASC”) ("Topic 606") is measured based on the consideration specified in the contract with a customer and excludes amounts collected on behalf of third parties. The Company recognizes revenue from contracts with customers when it satisfies its performance obligations.
The Company’s performance obligations are generally satisfied as services are rendered and can either be satisfied at a point in time or over time. Unsatisfied performance obligations at the report date are not material to our consolidated financial statements.
In certain cases, other parties are involved with providing services to our customers. If the Company is a principal in the transaction (providing services itself or through a third party on its behalf), revenues are reported based on the gross consideration received from the customer and any related expenses are reported gross in noninterest expense. If the Company is an agent in the transaction (referring to another party to provide services), the Company reports its net fee or commission retained as revenue.
Accounting Policy Updates
The Company adopted Topic 606, “Revenue from Contracts with Customers” effective January 1, 2018 and has applied the guidance to all contracts within the scope of Topic 606 as of that date. As a result, the Company has modified its accounting policy for revenue recognition as detailed in this Note.
The Company applied Topic 606 using the modified retrospective method, therefore, the prior period comparative information has not been adjusted and continues to be reported under Topic 605. There was no cumulative effect adjustment as

53
Table of Contents
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements (Continued)

of January 1, 2018, and there were no material changes to our consolidated financial statements at or for the nine months ended September 30, 2019, as a result of adopting Topic 606.
The Company applied the practical expedient pertaining to contracts with original expected duration of one year or less and does not disclose information about remaining performance obligations on such contracts.
The Company also applied the practical expedient pertaining to contracts for which, at contract inception, the period between when the entity transfers the services and when the customer pays for those services will be one year or less. As such, the Company does not adjust the consideration from customers for the effects of a significant financing component.
A substantial portion of the Company’s revenue is specifically excluded from the scope of Topic 606. This exclusion is associated with financial instruments, including interest income on loans and investment securities, in addition to loan derivative income and gains on loan and investment sales. For the revenue that is in-scope of Topic 606, the following is a description of principal activities from which the Company generates its revenue from contracts with customers, separated by the timing of revenue recognition.
Revenue Recognized at a Point in Time
The Company recognizes revenue that is transactional in nature and such revenue is earned at a point in time. Revenue that is recognized at a point in time includes card interchange fees (fee income related to debit card transactions), ATM fees, wire transfer fees, overdraft charge fees, and stop-payment and returned check fees. Additionally, revenue is collected from loan fees, such as letters of credit, line renewal fees and application fees. Such revenue is derived from transactional information and is recognized as revenue immediately as the transactions occur or upon providing the service to complete the customer’s transaction.
Revenue Recognized Over Time
The Company recognizes revenue over a period of time, generally monthly, as services are performed and performance obligations are satisfied. Such revenue includes commissions on investments, insurance sales and service charges on deposit accounts. Fee revenue from service charges on deposit accounts represents the service charges assessed to customers who hold deposit accounts at the Banks.
(14) Subsequent Events
As previously disclosed on October 23, 2019, Brookline Bank has entered into a merger agreement with First Ipswich.  Pending receipt of the applicable regulatory approvals, Brookline Bank anticipates closing the transaction in the first quarter of 2020.
As previously disclosed on July 31, 2019, Brookline Bank converted its charter from a Massachusetts-chartered savings bank to a Massachusetts-chartered trust company and ended its membership in DIF, which insures Massachusetts-chartered savings bank deposits in excess of federal deposit insurance coverage.  Brookline Bank’s growth in deposit size necessitated Brookline Bank’s withdrawal from the DIF and the concurrent charter conversion of Brookline Bank. Brookline Bank will continue to be supervised by the FRB and DOB.
Brookline’s deposit accounts will continue to be insured by the deposit insurance fund of the FDIC up to applicable limits.  Excess deposits that were insured by the DIF on July 31, 2019 will continue to be insured by the DIF until July 31, 2020.  Term deposits in excess of the FDIC insurance coverage will continue to be insured by the DIF until they reach maturity.



54

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Forward-Looking Statements
Certain statements contained in this Quarterly Report on Form 10-Q 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. Forward-looking statements involve risks and uncertainties. These statements, which are based on certain assumptions and describe Brookline Bancorp, Inc.’s (the “Company’s”) future plans, strategies and expectations, can generally be identified by the use of the words “may,” “will,” “should,” “could,” “would,” “plan,” “potential,” “estimate,” “project,” “believe,” “intend,” “anticipate,” “expect,” “target” and similar expressions. These statements include, among others, statements regarding the Company’s intent, belief or expectations with respect to economic conditions, trends affecting the Company’s financial condition or results of operations, and the Company’s exposure to market, liquidity, interest-rate and credit risk.
Forward-looking statements are based on the current assumptions underlying the statements and other information with respect to the beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions of management and the financial condition, results of operations, future performance and business are only expectations of future results. Although the Company believes that the expectations reflected in the Company’s forward-looking statements are reasonable, the Company’s actual results could differ materially from those projected in the forward-looking statements as a result of, among other factors, adverse conditions in the capital and debt markets; changes in interest rates; competitive pressures from other financial institutions; the effects of weakness in general economic conditions on a national basis or in the local markets in which the Company operates, including changes which adversely affect borrowers’ ability to service and repay their loans and leases; changes in the value of securities and other assets in the Company’s investment portfolio; changes in loan and lease default and charge-off rates; the adequacy of allowances for loan and lease losses; decreases in deposit levels that necessitate increases in borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity breaches, fraud and natural disaster; changes in government regulation; the risk that goodwill and intangibles recorded in the Company’s financial statements will become impaired; and changes in assumptions used in making such forward-looking statements, as well as the other risks and uncertainties detailed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018 and other filings submitted to the Securities and Exchange Commission ("SEC"). Forward-looking statements speak only as of the date on which they are made. 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.
Introduction
Brookline Bancorp, Inc., a Delaware corporation, operates as a multi-bank holding company for Brookline Bank and its subsidiaries; Bank Rhode Island and its subsidiaries ("BankRI"); First Ipswich Bank and its subsidiaries ("First Ipswich"); and Brookline Securities Corp. As previously disclosed, it is expected that First Ipswich will merge with and into Brookline Bank in the first quarter of 2020.
As a commercially-focused financial institution with 51 full-service banking offices throughout greater Boston, the north shore of Massachusetts and Rhode Island, the Company, through Brookline Bank, BankRI and First Ipswich (the “Banks”), offers a wide range of commercial, business and retail banking services, including a full complement of cash management products, foreign exchange services, on-line and mobile banking services, consumer and residential loans and investment advisory services, designed to meet the financial needs of small- to mid-sized businesses and individuals throughout central New England. Specialty lending activities include equipment financing, with 27.4% of the New York and New Jersey metropolitan area.
The Company focuses its business efforts on profitably growing its commercial lending businesses, both organically and through acquisitions. The Company’s customer focus, multi-bank structure, and risk management are integral to its organic growth strategy and serve to differentiate the Company from its competitors. As full-service financial institutions, the Banks and their subsidiaries focus their efforts on developing and deepening long-term banking relationships with qualified customers through a full complement of products and excellent customer service, and strong risk management.
The Company manages the Banks under uniform strategic objectives, with one set of uniform policies consistently applied by one executive management team. Within this environment, the Company believes that the ability to make customer decisions locally enhances management's motivation, service levels and, as a consequence, the Company's financial results. As such, while most back-office functions are consolidated at the holding company level, branding and decision-making, including credit decisions and pricing, remain largely local in order to better meet the needs of bank customers and further motivate the Banks’ commercial, business and retail bankers. These credit decisions, at the local level, are executed through corporate policies overseen by the Company's credit department.

55

The competition for loans and leases and deposits remains intense. While the economy has improved in 2019, the Company expects the operating environment to remain challenging. The volume of loan and lease originations and loan and lease losses will depend, to a large extent, on how the economy performs. Loan and lease growth and deposit growth are also greatly influenced by the rate-setting actions of the Board of Governors of the Federal Reserve System (“FRB”). A sustained, low interest rate environment with a flat interest rate curve may negatively impact the Company's yields and net interest margin. While the Company is slightly asset sensitive and should benefit from rising rates, changes in interest rates could also precipitate a change in the mix and volume of the Company's deposits and loans. The future operating results of the Company will depend on its ability to maintain or increase the current net interest margin, while minimizing exposure to credit risk, along with increasing sources of non-interest income, while controlling the growth of non-interest expenses.
The Company and the Banks are supervised, examined and regulated by the FRB. As Massachusetts-chartered trust companies, Brookline Bank and First Ipswich are also subject to regulation under the laws of the Commonwealth of Massachusetts and the jurisdiction of the Massachusetts Division of Banks. As a Rhode Island-chartered financial institution, BankRI is also subject to regulation under the laws of the State of Rhode Island and the jurisdiction of the Banking Division of the Rhode Island Department of Business Regulation. The FDIC continues to insure each of the Banks’ deposits up to $250,000 per depositor. As previously disclosed on July 31, 2019, Brookline Bank converted its charter from a Massachusetts-charted savings bank to a Massachusetts-chartered trust company and ended its membership in the Depositors Insurance Fund (“DIF”), a private industry-sponsored fund which insures Massachusetts-chartered savings bank deposit balances in excess of federal deposit insurance coverage. Brookline Bank’s growth in deposit size necessitated Brookline Bank’s withdrawal from the DIF and the concurrent charter conversion of Brookline Bank. Brookline’s deposit accounts will continue to be insured by the deposit insurance fund of the FDIC up to applicable limits.  Excess deposits that were insured by the DIF on July 31, 2019 will continue to be insured by the DIF until July 31, 2020.  Term deposits in excess of the FDIC insurance coverage will continue to be insured by the DIF until they reach maturity.

The Company’s common stock is traded on the Nasdaq Global Select MarketSM under the symbol “BRKL.”

56

Selected Financial Data
The following is based in part on, and should be read in conjunction with, the consolidated financial statements and accompanying notes, and other information appearing elsewhere in this Quarterly Report on Form 10-Q.
 
At and for the Three Months Ended
 
September 30,
 
June 30,
 
March 31,
 
December 31,
 
September 30,
 
2019
 
2019
 
2019
 
2018
 
2018
 
(Dollars in Thousands, Except Per Share Data)
PER COMMON SHARE DATA
 
 
 
 
 
 
 
 
 
Earnings per share - Basic
$
0.28

 
$
0.26

 
$
0.28

 
$
0.26

 
$
0.28

Earnings per share - Diluted
0.28

 
0.26

 
0.28

 
0.26

 
0.28

Book value per share (end of period)
11.70

 
11.53

 
11.30

 
11.30

 
11.08

Tangible book value per share (end of period) (1)
9.63

 
9.45

 
9.22

 
9.21

 
9.00

Dividends paid per common share
0.110

 
0.110

 
0.105

 
0.105

 
0.100

Stock price (end of period)
14.73

 
15.38

 
14.40

 
13.82

 
16.70

 
 
 
 
 
 
 
 
 
 
PERFORMANCE RATIOS (2)
 
 
 
 
 
 
 
 
 
Net interest margin (taxable equivalent basis)
3.45
%
 
3.55
%
 
3.64
%
 
3.58
%
 
3.57
%
Return on average assets
1.17
%
 
1.08
%
 
1.21
%
 
1.15
%
 
1.23
%
Return on average tangible assets (1)
1.19
%
 
1.11
%
 
1.24
%
 
1.17
%
 
1.26
%
Return on average stockholders' equity
9.74
%
 
8.98
%
 
10.14
%
 
9.40
%
 
10.10
%
Return on average tangible stockholders' equity (1)
11.85
%
 
10.98
%
 
12.48
%
 
11.54
%
 
12.44
%
Dividend payout ratio (1)
38.88
%
 
42.87
%
 
37.28
%
 
39.98
%
 
35.81
%
Efficiency ratio (3)
56.48
%
 
56.09
%
 
55.83
%
 
57.86
%
 
53.76
%
 
 
 
 
 
 
 
 
 
 
ASSET QUALITY RATIOS
 
 
 
 
 
 
 
 
 
Net loan and lease charge-offs as a percentage of average loans and leases (annualized)
0.02
%
 
0.19
%
 
0.13
%
 
0.08
%
 
0.04
%
Nonperforming loans and leases as a percentage of total loans and leases
0.33
%
 
0.33
%
 
0.36
%
 
0.38
%
 
0.41
%
Nonperforming assets as a percentage of total assets
0.30
%
 
0.30
%
 
0.36
%
 
0.38
%
 
0.41
%
Total allowance for loan and lease losses as a percentage of total loans and leases
0.89
%
 
0.90
%
 
0.91
%
 
0.93
%
 
0.96
%
Allowance for loan and lease losses related to originated loans and leases as a percentage of originated loans and leases (1)
0.90
%
 
0.92
%
 
0.93
%

0.96
%

1.00
%
 
 
 
 
 
 
 
 
 
 
CAPITAL RATIOS
 
 
 
 
 
 
 
 
 
Stockholders' equity to total assets
11.83
%
 
12.03
%
 
11.98
%
 
12.18
%
 
12.16
%
Tangible equity ratio (1)
9.94
%
 
10.08
%
 
9.99
%
 
10.15
%
 
10.11
%
 
 
 
 
 
 
 
 
 
 
FINANCIAL CONDITION DATA
 
 
 
 
 
 
 
 
 
Total assets
$
7,878,436

 
$
7,636,980

 
$
7,519,130

 
$
7,392,805

 
$
7,320,596

Total loans and leases
6,646,821

 
6,505,329

 
6,388,197

 
6,303,516

 
6,227,707

Allowance for loan and lease losses
59,135

 
58,635

 
58,041

 
58,692

 
59,997

Investment securities available-for-sale
467,339

 
482,497

 
489,020

 
502,793

 
534,788

Investment securities held-to-maturity
95,163

 
103,572

 
113,694

 
114,776

 
115,684

Equity securities held-for-trading
4,581

 
4,698

 
4,341

 
4,207

 
4,169

Goodwill and identified intangible assets
165,270

 
165,691

 
166,111

 
166,513

 
167,050

Total deposits
5,729,339

 
5,622,493

 
5,620,633

 
5,454,044

 
5,233,611

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Continued)


57

 
At and for the Three Months Ended
 
September 30,
 
June 30,
 
March 31,
 
December 31,
 
September 30,
 
2019
 
2019
 
2019
 
2018
 
2018
 
(Dollars in Thousands, Except Per Share Data)
 
 
 
 
 
 
 
 
 
 
Total borrowed funds
986,405

 
930,764

 
866,005

 
920,542

 
1,082,886

Stockholders' equity
932,311

 
918,468

 
900,572

 
900,140

 
890,368

 
 
 
 
 
 
 
 
 
 
EARNINGS DATA
 
 
 
 
 
 
 
 
 
Net interest income
$
63,236

 
$
63,134

 
$
62,999

 
$
63,159

 
$
62,332

Provision for credit losses
871

 
3,757

 
1,353

 
123

 
2,717

Non-interest income
7,929

 
7,478

 
6,630

 
6,461

 
7,069

Non-interest expense
40,191

 
39,604

 
38,871

 
40,282

 
37,310

Net income
22,596

 
20,471

 
22,467

 
21,138

 
22,460

_______________________________________________________________________________
(1) Refer to "Non-GAAP Financial Measures and Reconciliations to GAAP".

(2) All performance ratios are annualized and are based on average balance sheet amounts, where applicable.

(3) Efficiency ratio is calculated by dividing non-interest expense by the sum of non-interest income and net interest income.
Executive Overview
Growth
Total assets of $7.9 billion as of September 30, 2019 increased $485.6 million, or 8.8% on an annualized basis, from December 31, 2018. The increase was primarily driven by growth in the loan portfolio.
Total loans and leases as of September 30, 2019 increased $343.3 million, or 7.3% on an annualized basis, to $6.6 billion from December 31, 2018. The Company's commercial loan portfolios, which are comprised of commercial real estate loans and commercial loans and leases, totaled $5.4 billion, or 81.8% of total loans and leases, as of September 30, 2019, an increase of $319.1 million, or 8.3% on an annualized basis, from $5.1 billion, or 81.2% of total loans and leases, as of December 31, 2018.
Total deposits of $5.7 billion as of September 30, 2019 increased $275.3 million, or 6.7% on an annualized basis, from December 31, 2018. Core deposits, which include demand checking, NOW, money market and savings accounts, totaled $3.7 billion, or 64.9% of total deposits as of September 30, 2019, an increase of $52.8 million, or 1.9% on an annualized basis from $3.7 billion, or 67.2% of total deposits, as of December 31, 2018. Certificate of deposit balances totaled $2.0 billion, or 35.1% of total deposits as of September 30, 2019, an increase of $222.5 million, or 16.6% on an annualized basis from $1.8 billion, or 32.7% of total deposits, as of December 31, 2018.
Asset Quality
Nonperforming assets as of September 30, 2019 totaled $23.8 million, or 0.30% of total assets, compared to $28.1 million, or 0.38% of total assets, as of December 31, 2018. Net charge-offs for the three months ended September 30, 2019 were $0.4 million, or 0.02% of average loans and leases on an annualized basis, compared to $0.6 million, or 0.04% of average loans and leases on an annualized basis, for the three months ended September 30, 2018.
The ratio of the allowance for loan and lease losses to total loans and leases was 0.89% as of September 30, 2019, compared to 0.93% as of December 31, 2018. Excluding acquired loans, the allowance for loan and lease losses related to originated loans and leases as a percentage of the total originated loan and lease portfolio was 0.90% as of September 30, 2019, compared to 0.96% as of December 31, 2018. The Company continued to employ its historical underwriting methodology throughout the three month period ended September 30, 2019. Refer also to Note 5, "Allowance for Loan and Lease Losses."
Capital Strength
The Company is a "well-capitalized" bank holding company as defined in the FRB's Regulation Y. The Company's common equity Tier 1 Capital Ratio was 11.26% as of September 30, 2019, compared to 11.94% as of December 31, 2018. The Company's Tier 1 Leverage Ratio was 10.24% as of September 30, 2019, compared to 10.58% as of December 31, 2018. As of September 30, 2019, the Company's Tier 1 Risk-Based Capital Ratio was 11.41%, compared to 12.26% as of December 31, 2018. The Company's Total Risk-Based Capital Ratio was 13.39% as of September 30, 2019, compared to 14.42% as of December 31, 2018.

58

The Company's ratio of stockholders' equity to total assets was 11.83% and 12.18% as of September 30, 2019 and December 31, 2018, respectively. The Company's tangible equity ratio was 9.94% and 10.15% as of September 30, 2019 and December 31, 2018, respectively.
Net Income
For the three months ended September 30, 2019, the Company reported net income of $22.6 million, or $0.28 per basic and diluted share, an increase of $0.1 million, or 2.4% on an annualized basis, from $22.5 million, or $0.28 per basic and diluted share for the three months ended September 30, 2018. This increase in net income is primarily the result of an increase in net interest income of $0.9 million, a decrease in the provision for credit losses of $1.8 million, an increase in non-interest income of $0.9 million, and a decrease in income attributable to noncontrolling interest of $0.8 million, partially offset by an increase in non-interest expense of $2.9 million and an increase in the provision for income taxes of $1.4 million. Refer to “Results of Operations" below for further discussion.
For the nine months ended September 30, 2019, the Company reported net income of $65.5 million, or $0.82 per basic and diluted share, an increase of $3.6 million, or 5.8%, from $61.9 million, or $0.78 per basic and diluted share for the nine months ended September 30, 2018. This increase in net income is primarily the result of an increase in net interest income of $4.8 million, an increase in non-interest income of $3.3 million, and a decrease in net income attributed to controlling interest of $2.4 million, partially offset by an increase in the provision for credit losses of $1.2 million, an increase in non-interest expense of $3.7 million, and an increase in the provision for income taxes of $2.0 million. Refer to “Results of Operations" below for further discussion.
The annualized return on average assets was 1.17% for the three months ended September 30, 2019, compared to 1.23% for the three months ended September 30, 2018. The annualized return on average stockholders' equity was 9.74% for the three months ended September 30, 2019, compared to 10.10% for the three months ended September 30, 2018.
The net interest margin was 3.45% for the three months ended September 30, 2019, down from 3.57% for the three months ended September 30, 2018. The decrease in the net interest margin is a result of an increase of 32 basis points in the Company's overall cost of funds to 1.47% for the three months ended September 30, 2019 from 1.15% for the three months ended September 30, 2018, partially offset by an increase in the yield on interest-earning assets of 18 basis points to 4.83% for the three months ended September 30, 2019 from 4.65% for the three months ended September 30, 2018.
The net interest margin was 3.54% for the nine months ended September 30, 2019, down from 3.62% for the nine months ended September 30, 2018. The decrease in the net interest margin is a result of an increase of 46 basis points in the Company's overall cost of funds to 1.44% for the nine months ended September 30, 2019 from 0.98% for the nine months ended September 30, 2018, partially offset by an increase in the yield on interest-earning assets of 34 basis points to 4.85% for the nine months ended September 30, 2019 from 4.51% for the nine months ended September 30, 2018.
The Company’s net interest margin and net interest income is sensitive to the structure and level of interest rates as well as competitive pricing in all loan categories and the Company’s ability to contain cost of funds.
Critical Accounting Policies
The SEC defines “critical accounting policies” as those involving significant judgments and difficult or complex assumptions by management, often as a result of the need to make estimates about matters that are inherently uncertain or variable, which have, or could have, a material impact on the carrying value of certain assets or net income. The preparation of financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, income and expenses, and disclosure of contingent assets and liabilities. Actual results could differ from those estimates. As discussed in the Company’s 2018 Annual Report on Form 10-K, management has identified the valuation of available-for-sale securities, accounting for assets and liabilities acquired, the determination of the allowance for loan and lease losses, the review of goodwill and intangibles for impairment, income tax accounting, and valuation of deferred tax assets as the Company’s most critical accounting policies.

59

Non-GAAP Financial Measures and Reconciliation to GAAP
In addition to evaluating the Company’s results of operations in accordance with GAAP, management periodically supplements this evaluation with an analysis of certain non-GAAP financial measures, such as operating earnings metrics, the return on average tangible assets, return on average tangible equity, the tangible equity ratio, tangible book value per share, dividend payout ratio, and the ratio of the allowance for loan and lease losses related to originated loans and leases as a percentage of originated loans and leases. Management believes that these non-GAAP financial measures provide information useful to investors in understanding the Company’s underlying operating performance and trends, and facilitates comparisons with the performance assessment of financial performance, including non-interest expense control, while the tangible equity ratio and tangible book value per share are used to analyze the relative strength of the Company’s capital position.
The following table reconciles the Company’s operating earnings, operating return on average assets and operating return on average stockholders’ equity for the periods indicated:
 
At and for the Three Months Ended 
 September 30,
 
At and for the Nine Months Ended 
 September 30,
 
2019
 
2018
 
2019
 
2018
 
(Dollars in Thousands)
Net income, as reported
$
22,596

 
$
22,460

 
$
65,534

 
$
61,924

Less:
 
 
 
 
 
 
 
Security (losses) gains (after-tax)
(87
)
 
—

 
284

 
883

Add:
 
 
 
 
 
 
 
Merger and restructuring-related expenses (after-tax) (1) (2)
845

 
17

 
851

 
2,478

Operating earnings
$
23,528

 
$
22,477

 
$
66,101

 
$
63,519

 
 
 
 
 
 
 
 
Basic earnings per share, as reported
$
0.28

 
$
0.28

 
$
0.82

 
$
0.78

Less:
 
 
 
 
 
 
 
Security (losses) gains (after-tax)
—

 
—

 
—

 
0.01

Add:
 
 
 
 
 
 
 
Merger and restructuring-related expenses (after-tax) (1) (2)
0.02

 
—

 
0.01

 
0.03

Basic operating earnings per share
$
0.30

 
$
0.28

 
$
0.83

 
$
0.80

___________________________________________________________________
(1) 2018 Merger and restructuring expense related to the acquisition of First Commons Bank in the first quarter of 2018.
(2) 2019 Merger and restructuring expense related to the First Ipswich Bank charter consolidation in the third quarter of 2019.


60


The following tables reconcile the Company’s return on average tangible assets and return on average tangible stockholders’ equity for the periods indicated:
 
Three Months Ended
 
September 30,
2019
 
June 30,
2019
 
March 31,
2019
 
December 31,
2018
 
September 30,
2018
 
(Dollars in Thousands)
Operating earnings
$
23,528

 
$
20,203

 
$
22,364

 
$
22,062

 
$
22,477

 
 
 
 
 
 
 
 
 
 
Average total assets
$
7,746,492

 
$
7,571,396

 
$
7,434,038

 
$
7,382,931

 
$
7,302,413

Less: Average goodwill and average identified intangible assets, net
165,493

 
165,914

 
166,327

 
166,777

 
167,313

Average tangible assets
$
7,580,999

 
$
7,405,482

 
$
7,267,711

 
$
7,216,154

 
$
7,135,100

 
 
 
 
 
 
 
 
 
 
Return on average assets (annualized)
1.17
 %
 
1.08
%
 
1.21
%
 
1.15
 %
 
1.23
%
Less:
 
 
 
 
 
 
 
 
 
Security (losses) gains
—
 %
 
0.01
%
 
0.01
%
 
(0.03
)%
 
—
%
Add:
 
 
 
 
 
 
 
 
 
Merger and restructuring-related expenses
0.04
 %
 
—
%
 
—
%
 
0.02
 %
 
—
%
Operating return on average assets (annualized)
1.21
 %
 
1.07
%
 
1.20
%
 
1.20
 %
 
1.23
%
 
 
 
 
 
 
 
 
 
 
Return on average tangible assets (annualized)
1.19
 %
 
1.11
%
 
1.24
%
 
1.17
 %
 
1.26
%
Less:
 
 
 
 
 
 
 
 
 
Security (losses) gains
—
 %
 
0.02
%
 
0.01
%
 
(0.03
)%
 
—
%
Add:
 
 
 
 
 
 
 
 
 
Merger and restructuring-related expenses
0.05
 %
 
—
%
 
—
%
 
0.02
 %
 
—
%
Operating return on average tangible assets (annualized)
1.24
 %
 
1.09
%
 
1.23
%
 
1.22
 %
 
1.26
%
 
 
 
 
 
 
 
 
 
 
Average total stockholders' equity
$
928,063

 
$
911,824

 
$
886,639

 
$
899,244

 
$
889,259

Less: Average goodwill and average identified intangible assets, net
165,493

 
165,914

 
166,327

 
166,777

 
167,313

Average tangible stockholders' equity
$
762,570

 
$
745,910

 
$
720,312

 
$
732,467

 
$
721,946

 
 
 
 
 
 
 
 
 
 
Return on average stockholders' equity (annualized)
9.74
 %
 
8.98
%
 
10.14
%
 
9.40
 %
 
10.10
%
Less:
 
 
 
 
 
 
 
 
 
Security (losses) gains
(0.04
)%
 
0.12
%
 
0.05
%
 
(0.23
)%
 
—
%
Add:
 
 
 
 
 
 
 
 
 
Merger and restructuring-related expenses
0.36
 %
 
—
%
 
—
%
 
0.18
 %
 
0.01
%
Operating return on average stockholders' equity (annualized)
10.14
 %
 
8.86
%
 
10.09
%
 
9.81
 %
 
10.11
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Continued)


61

 
Three Months Ended
 
September 30,
2019
 
June 30,
2019
 
March 31,
2019
 
December 31,
2018
 
September 30,
2018
 
(Dollars in Thousands)
Return on average tangible stockholders' equity (annualized)
11.85
 %
 
10.98
%
 
12.48
%
 
11.54
 %
 
12.44
%
Less:
 
 
 
 
 
 
 
 
 
Security (losses) gains
(0.05
)%
 
0.15
%
 
0.06
%
 
(0.29
)%
 
—
%
Add:
 
 
 
 
 
 
 
 
 
Merger and restructuring-related expenses
0.44
 %
 
—
%
 
—
%
 
0.22
 %
 
0.01
%
Operating return on average tangible stockholders' equity (annualized)
12.34
 %
 
10.83
%
 
12.42
%
 
12.05
 %
 
12.45
%

 
Three Months Ended
 
September 30,
2019

June 30,
2019

March 31, 2019

December 31,
2018

September 30,
2018
 
(Dollars in Thousands)
Net income, as reported
$
22,596

 
$
20,471

 
$
22,467

 
$
21,138

 
$
22,460

 
 
 
 
 
 
 
 
 
 
Average total assets
$
7,746,492

 
$
7,571,396

 
$
7,434,038

 
$
7,382,931

 
$
7,302,413

Less: Average goodwill and average identified intangible assets, net
165,493


165,914


166,327


166,777


167,313

Average tangible assets
$
7,580,999

 
$
7,405,482

 
$
7,267,711

 
$
7,216,154

 
$
7,135,100

 
 
 
 
 
 
 
 
 
 
Return on average tangible assets (annualized)
1.19
%
 
1.11
%
 
1.24
%
 
1.17
%
 
1.26
%
 
 
 
 
 
 
 
 
 
 
Average total stockholders' equity
$
928,063

 
$
911,824

 
$
886,639

 
$
899,244

 
$
889,259

Less: Average goodwill and average identified intangible assets, net
165,493

 
165,914

 
166,327

 
166,777

 
167,313

Average tangible stockholders' equity
$
762,570

 
$
745,910

 
$
720,312

 
$
732,467

 
$
721,946

 
 
 
 
 
 
 
 
 
 
Return on average tangible stockholders' equity (annualized)
11.85
%
 
10.98
%
 
12.48
%
 
11.54
%
 
12.44
%

The following table reconciles the Company's tangible equity ratio for the periods indicated:
 
Three Months Ended
 
September 30,
2019
 
June 30,
2019
 
March 31,
2019
 
December 31,
2018
 
September 30,
2018
 
(Dollars in Thousands)
Total stockholders' equity
$
932,311

 
$
918,468

 
$
900,572

 
$
900,140

 
$
890,368

Less: Goodwill and identified intangible assets, net
165,270

 
165,691

 
166,111

 
166,513

 
167,050

Tangible stockholders' equity
$
767,041

 
$
752,777

 
$
734,461

 
$
733,627

 
$
723,318

 
 
 
 
 
 
 
 
 
 
Total assets
$
7,878,436

 
$
7,636,980

 
$
7,519,130

 
$
7,392,805

 
$
7,320,596

Less: Goodwill and identified intangible assets, net
165,270

 
165,691

 
166,111

 
166,513

 
167,050

Tangible assets
$
7,713,166

 
$
7,471,289

 
$
7,353,019

 
$
7,226,292

 
$
7,153,546

 
 
 
 
 
 
 
 
 
 
Tangible equity ratio
9.94
%
 
10.08
%
 
9.99
%
 
10.15
%
 
10.11
%


62

The following table reconciles the Company's tangible book value per share for the periods indicated:
 
Three Months Ended
 
September 30,
2019
 
June 30,
2019
 
March 31, 2019
 
December 31,
2018
 
September 30,
2018
 
(Dollars in Thousands)
Tangible stockholders' equity
$
767,041

 
$
752,777

 
$
734,461

 
$
733,627

 
$
723,318

 
 
 
 
 
 
 
 
 
 
Common shares issued
85,177,172

 
85,177,172

 
85,177,172

 
85,177,172

 
85,177,172

Less:
 
 
 
 
 
 
 
 
 
Treasury shares
5,003,127

 
5,025,764

 
5,020,025

 
5,020,025

 
4,291,317

Unallocated ESOP
92,337

 
98,208

 
104,079

 
109,950

 
118,050

Unvested restricted stock
407,784

 
377,122

 
390,636

 
393,636

 
398,094

Common shares outstanding
79,673,924

 
79,676,078

 
79,662,432

 
79,653,561

 
80,369,711

 
 
 
 
 
 
 
 
 
 
Tangible book value per share
$
9.63

 
$
9.45

 
$
9.22

 
$
9.21

 
$
9.00


The following table reconciles the Company's dividend payout ratio for the periods indicated:
 
Three Months Ended
 
September 30,
2019
 
June 30,
2019
 
March 31, 2019
 
December 31,
2018
 
September 30,
2018
 
(Dollars in Thousands)
Dividends paid
$
8,786

 
$
8,775

 
$
8,375

 
$
8,451

 
$
8,043

 
 
 
 
 
 
 
 
 
 
Net income, as reported
$
22,596

 
$
20,471

 
$
22,467

 
$
21,138

 
$
22,460

 
 
 
 
 
 
 
 
 
 
Dividend payout ratio
38.88
%
 
42.87
%
 
37.28
%
 
39.98
%
 
35.81
%

The following table reconciles the Company’s allowance for loan and lease losses related to originated loans and leases as a percentage of total originated loans and leases for the periods indicated:
 
Three Months Ended
 
September 30,
2019
 
June 30,
2019
 
March 31, 2019
 
December 31,
2018
 
September 30,
2018
 
 
 
 
 
 
 
 
 
 
Allowance for loan and lease losses
$
59,135

 
$
58,635

 
$
58,041

 
$
58,692

 
$
59,997

Less: Allowance for acquired loan and lease losses
1,955

 
1,857

 
1,795

 
1,814

 
1,817

Allowance for originated loan and lease losses
$
57,180


$
56,778


$
56,246


$
56,878


$
58,180

 
 
 
 
 
 
 
 
 
 
Total loans and leases
$
6,646,821

 
$
6,505,329

 
$
6,388,197

 
$
6,303,516

 
$
6,227,707

Less: Total acquired loans and leases
310,745

 
337,420

 
370,177

 
394,407

 
426,865

Total originated loan and leases
$
6,336,076


$
6,167,909


$
6,018,020


$
5,909,109


$
5,800,842

 
 
 
 
 
 
 
 
 
 
Allowance for loan and lease losses related to originated loans and leases as a percentage of originated loan and leases
0.90
%

0.92
%

0.93
%

0.96
%

1.00
%


63

Financial Condition
Loans and Leases
The following table summarizes the Company's portfolio of loans and leases receivables as of the dates indicated:
 
At September 30, 2019
 
At December 31, 2018
 
Balance
 
Percent
of Total
 
Balance
 
Percent
of Total
 
(Dollars in Thousands)
Commercial real estate loans:
 
 
 
 
 
 
 
Commercial real estate
$
2,441,091

 
36.7
%
 
$
2,330,725

 
37.0
%
Multi-family mortgage
919,234

 
13.9
%
 
847,711

 
13.4
%
Construction
229,126

 
3.5
%
 
173,300

 
2.7
%
Total commercial real estate loans
3,589,451

 
54.1
%
 
3,351,736

 
53.1
%
Commercial loans and leases:
 
 
 
 
 
 
 
Commercial
766,883

 
11.5
%
 
736,418

 
11.7
%
Equipment financing
1,029,280

 
15.5
%
 
982,089

 
15.6
%
Condominium association
54,225

 
0.8
%
 
50,451

 
0.8
%
Total commercial loans and leases
1,850,388

 
27.8
%
 
1,768,958

 
28.1
%
Consumer loans:
 
 
 
 
 
 
 
Residential mortgage
792,733

 
11.9
%
 
782,968

 
12.4
%
Home equity
375,257

 
5.6
%
 
376,484

 
6.0
%
Other consumer
38,992

 
0.6
%
 
23,370

 
0.4
%
Total consumer loans
1,206,982

 
18.1
%
 
1,182,822

 
18.8
%
Total loans and leases
6,646,821

 
100.0
%
 
6,303,516

 
100.0
%
Allowance for loan and lease losses
(59,135
)
 
 
 
(58,692
)
 
 
Net loans and leases
$
6,587,686

 
 
 
$
6,244,824

 
 

The following table sets forth the growth in the Company’s loan and lease portfolios during the nine months ended September 30, 2019:
 
At September 30,
2019
 
At December 31,
2018
 
Dollar Change
 
Percent Change
(Annualized)
 
(Dollars in Thousands)
Commercial real estate
$
3,589,451

 
$
3,351,736

 
$
237,715

 
9.5
%
Commercial
1,850,388

 
1,768,958

 
81,430

 
6.1
%
Consumer
1,206,982

 
1,182,822

 
24,160

 
2.7
%
Total loans and leases
$
6,646,821

 
$
6,303,516

 
$
343,305

 
7.3
%
The Company's loan portfolio consists primarily of first mortgage loans secured by commercial, multi-family and residential real estate properties located in the Company's primary lending area, loans to business entities, including commercial lines of credit, loans to condominium associations and loans and leases used to finance equipment used by small businesses. The Company also provides financing for construction and development projects, home equity and other consumer loans.
The Company employs seasoned commercial lenders and retail bankers who rely on community and business contacts as well as referrals from customers, attorneys and other professionals to generate loans and deposits. Existing borrowers are also an important source of business since many of them have more than one loan outstanding with the Company. The Company's ability to originate loans depends on the strength of the economy, trends in interest rates, and levels of customer demand and market competition.
The Company's current policy is that a total credit exposure to one obligor relationship may not exceed $50.0 million unless approved by the Credit Committee. As of September 30, 2019, there were 2 borrowers with loans and commitments over

64

$50.0 million. The total of those loans and commitments was $105.9 million or 1.33% of total loans and commitments, as of September 30, 2019. As of December 31, 2018, there were 2 borrowers with loans and commitments over $50.0 million. The total of those loans and commitments was $106.4 million or 1.41% of total loans and commitments, as of December 31, 2018.
The Company has written underwriting policies to control the inherent risks in loan origination. The policies address approval limits, loan-to-value ratios, appraisal requirements, debt service coverage ratios, loan concentration limits and other matters relevant to loan underwriting.
Commercial Real Estate Loans
The commercial real estate portfolio is comprised of commercial real estate loans, multi-family mortgage loans, and construction loans and is the largest component of the Company's overall loan portfolio, representing 54.1% of total loans and leases outstanding as of September 30, 2019.
Typically, commercial real estate loans are larger in size and involve a greater degree of risk than owner-occupied residential mortgage loans. Loan repayment is usually dependent on the successful operation and management of the properties and the value of the properties securing the loans. Economic conditions can greatly affect cash flows and property values.
A number of factors are considered in originating commercial real estate and multi-family mortgage loans. The qualifications and financial condition of the borrower (including credit history), as well as the potential income generation and the value and condition of the underlying property, are evaluated. When evaluating the qualifications of the borrower, the Company considers the financial resources of the borrower, the borrower's experience in owning or managing similar property and the borrower's payment history with the Company and other financial institutions. Factors considered in evaluating the underlying property include the net operating income of the mortgaged premises before debt service and depreciation, the debt service coverage ratio (the ratio of cash flow before debt service to debt service), the use of conservative capitalization rates, and the ratio of the loan amount to the appraised value. Generally, personal guarantees are obtained from commercial real estate loan borrowers.
Commercial real estate and multi-family mortgage loans are typically originated for terms of five to fifteen years with amortization periods of 20 to 30 years. Many of the loans are priced at inception on a fixed-rate basis generally for periods ranging from two to five years with repricing periods for longer-term loans. When possible, prepayment penalties are included in loan covenants on these loans. For commercial customers who are interested in loans with terms longer than five years, the Company offers loan level derivatives to accommodate customer need.
The Company's urban and suburban market area is characterized by a large number of apartment buildings, condominiums and office buildings. As a result, commercial real estate and multi-family mortgage lending has been a significant part of the Company's activities for many years. These types of loans typically generate higher yields, but also involve greater credit risk. Many of the Company's borrowers have more than one multi-family or commercial real estate loan outstanding with the Company.
The Company's commercial real estate portfolio is composed primarily of loans secured by apartment buildings ($861.5 million), office buildings ($739.7 million), retail stores ($603.3 million), industrial properties ($374.9 million), mixed-use properties ($299.0 million), lodging services ($150.1 million) and food services ($58.6 million) as of September 30, 2019. At that date, approximately 97.1% of the commercial real estate loans outstanding were secured by properties located in New England.
Construction and development financing is generally considered to involve a higher degree of risk than long-term financing on improved, occupied real estate and thus has lower concentration limits than do other commercial credit classes. Risk of loss on a construction loan is largely dependent upon the accuracy of the initial estimate of construction costs, the estimated time to sell or rent the completed property at an adequate price or rate of occupancy, and market conditions. If the estimates and projections prove to be inaccurate, the Company may be confronted with a project which, upon completion, has a value that is insufficient to assure full loan repayment.
Criteria applied in underwriting construction loans for which the primary source of repayment is the sale of the property are different from the criteria applied in underwriting construction loans for which the primary source of repayment is the stabilized cash flow from the completed project. For those loans where the primary source of repayment is from resale of the property, in addition to the normal credit analysis performed for other loans, the Company also analyzes project costs, the attractiveness of the property in relation to the market in which it is located and demand within the market area. For those construction loans where the source of repayment is the stabilized cash flow from the completed project, the Company analyzes not only project costs but also how long it might take to achieve satisfactory occupancy and the reasonableness of projected rental rates in relation to market rental rates.

65

Commercial Loans
The Company's commercial loan and lease portfolio is comprised of commercial loans, equipment financing loans and leases and condominium association loans and represented 27.8% of total loans outstanding as of September 30, 2019.
The Company's commercial loan and lease portfolio is composed primarily of loans to small to medium sized businesses ($626.6 million), transportation services ($403.7 million), food services ($154.5 million), recreation services ($153.9 million), manufacturing ($103.6 million), retail ($66.0 million), and rental and leasing services ($99.1 million) as of September 30, 2019.
The Company provides commercial banking services to companies in its market area. Approximately 47.0% of the commercial loans outstanding as of September 30, 2019 were made to borrowers located in New England. The remaining 53.0% of the commercial loans outstanding were made to borrowers in other areas in the United States of America, primarily by the Company's equipment financing divisions. Product offerings include lines of credit, term loans, letters of credit, deposit services and cash management. These types of credit facilities have as their primary source of repayment cash flows from the operations of a business. Interest rates offered are available on a floating basis tied to the prime rate or a similar index or on a fixed-rate basis referenced on the Federal Home Loan Bank of Boston ("FHLBB") index.
Credit extensions are made to established businesses on the basis of loan purpose and assessment of capacity to repay as determined by an analysis of their financial statements, the nature of collateral to secure the credit extension and, in most instances, the personal guarantee of the owner of the business as well as industry and general economic conditions. The Company also participates in U.S. Government programs such as the Small Business Administration (the "SBA") in both the 7A program and as an SBA preferred lender.
The Company’s equipment financing divisions focus on market niches in which its lenders have deep experience and industry contacts, and on making loans to customers with business experience. An important part of the Company’s equipment financing loan origination volume comes from equipment manufacturers and existing customers as they expand their operations. The equipment financing portfolio is composed primarily of loans to finance laundry, tow trucks, fitness, dry cleaning and convenience store equipment. Approximately 15.6% of the commercial loans outstanding were made to borrowers located primarily in the greater New York and New Jersey metropolitan area. Typically, the loans are priced at a fixed rate of interest and require monthly payments over their 3- to 7-year life. The yields earned on equipment financing loans are higher than those earned on the commercial loans made by the Banks because they involve a higher degree of credit risk. Equipment financing customers are typically small-business owners who operate with limited financial resources and who face greater risks when the economy weakens or unforeseen adverse events arise. Because of these characteristics, personal guarantees of borrowers are usually obtained along with liens on available assets. The size of loan is determined by an analysis of cash flow and other characteristics pertaining to the business and the equipment to be financed, based on detailed revenue and profitability data of similar operations.
Loans to condominium associations are for the purpose of funding capital improvements, are made for five- to ten-year terms and are secured by a general assignment of condominium association revenues. Among the factors considered in the underwriting of such loans are the level of owner occupancy, the financial condition and history of the condominium association, the attractiveness of the property in relation to the market in which it is located and the reasonableness of estimates of the cost of capital improvements to be made. Depending on loan size, funds are advanced as capital improvements are made and, in more complex situations, after completion of engineering inspections.
Consumer Loans
The consumer loan portfolio, which is comprised of residential mortgage loans, home equity loans and lines of credit, and other consumer loans, represented 18.1% of total loans outstanding as of September 30, 2019. The Company focuses its mortgage and home equity lending on existing and new customers within its branch networks in its urban and suburban marketplaces in the greater Boston and Providence metropolitan areas.
The Company originates adjustable- and fixed-rate residential mortgage loans secured by one- to four-family residences. Each residential mortgage loan granted is subject to a satisfactorily completed application, employment verification, credit history and a demonstrated ability to repay the debt. Generally, loans are not made when the loan-to-value ratio exceeds 80% unless private mortgage insurance is obtained and/or there is a financially strong guarantor. Appraisals are performed by outside independent fee appraisers.
Underwriting guidelines for home equity loans and lines of credit are similar to those for residential mortgage loans. Home equity loans and lines of credit are limited to no more than 80% of the appraised value of the property securing the loan including the amount of any existing first mortgage liens.

66

Other consumer loans have historically been a modest part of the Company's loan originations. As of September 30, 2019, other consumer loans equaled $39.0 million, or 0.6% of total loans outstanding.
Asset Quality
Criticized and Classified Assets
The Company's management rates certain loans and leases as "other assets especially mentioned" ("OAEM"), "substandard" or "doubtful" based on criteria established under banking regulations.These loans and leases are collectively referred to as "criticized" assets. Loans and leases rated OAEM have potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects of the loan or lease at some future date. Loans and leases rated as substandard are inadequately protected by the payment capacity of the obligor or of the collateral pledged, if any. Substandard loans and leases have a well-defined weakness or weaknesses that jeopardize the liquidation of debt and are characterized by the distinct possibility that the Company will sustain some loss if existing deficiencies are not corrected. Loans and leases rated as doubtful have well-defined weaknesses that jeopardize the orderly liquidation of debt and partial loss of principal is likely. As of September 30, 2019, the Company had $55.6 million of total assets, including acquired assets, that were designated as criticized. This compares to $58.6 million of assets designated as criticized as of December 31, 2018. The decrease of $3.0 million in criticized assets was primarily due to the pay-off of the criticized commercial relationships, partially offset by the new criticized commercial real estate and commercial relationships during the first nine months of 2019.
Nonperforming Assets
"Nonperforming assets" consist of nonaccrual loans and leases, other real estate owned ("OREO") and other repossessed assets. Under certain circumstances, the Company may restructure the terms of a loan or lease as a concession to a borrower, except for acquired loans and leases which are individually evaluated against expected performance on the date of acquisition. These restructured loans and leases are generally considered "nonperforming loans and leases" until a history of collection of at least six months on the restructured terms of the loan or lease has been established. OREO consists of real estate acquired through foreclosure proceedings and real estate acquired through acceptance of a deed in lieu of foreclosure. Other repossessed assets consist of assets that have been acquired through foreclosure that are not real estate and are included in other assets on the Company's unaudited consolidated balance sheets.
Accrual of interest on loans generally is discontinued when contractual payment of principal or interest becomes past due 90 days or, if in management's judgment, reasonable doubt exists as to the full timely collection of interest. Exceptions may be made if the loan has matured and is in the process of renewal or is well-secured and in the process of collection. When a loan is placed on nonaccrual status, interest accruals cease and uncollected accrued interest is reversed and charged against current interest income. Interest payments on nonaccrual loans are generally applied to principal. If collection of the principal is reasonably assured, interest payments are recognized as income on the cash basis. Loans are generally returned to accrual status when principal and interest payments are current, full collectability of principal and interest is reasonably assured and a consistent record of at least six months of performance has been achieved.
In cases where a borrower experiences financial difficulties and the Company makes certain concessionary modifications to contractual terms, the loan is classified as a troubled debt restructured loan. In determining whether a debtor is experiencing financial difficulties, the Company considers, among other factors, if the debtor is in payment default or is likely to be in payment default in the foreseeable future without the modification, the debtor declared or is in the process of declaring bankruptcy, there is substantial doubt that the debtor will continue as a going concern, the debtor's entity-specific projected cash flows will not be sufficient to service its debt, or the debtor cannot obtain funds from sources other than the existing creditors at market terms for debt with similar risk characteristics.
Nonperforming assets are composed of nonaccrual loans and leases, OREO and other repossessed assets. As of September 30, 2019, the Company had nonperforming assets of $23.8 million, representing 0.30% of total assets, compared to nonperforming assets of $28.1 million, or 0.38% of total assets as of December 31, 2018. The decrease in nonperforming assets was primarily driven by the payoff of commercial loans previously on nonaccrual status, the charge-offs of taxi medallion loans, and the sale of OREO properties, partially offset by the increase in other repossessed assets during first nine months of 2019.
The Company evaluates the underlying collateral of each nonaccrual loan and lease and continues to pursue the collection of interest and principal. Management believes that the current level of nonperforming assets remains manageable relative to the size of the Company's loan and lease portfolio. If economic conditions were to worsen or if the marketplace were to experience prolonged economic stress, it is likely that the level of nonperforming assets would increase, as would the level of charged-off loans.            

67


Past Due and Accruing
Accrual of interest on loans generally is discontinued when contractual payment of principal or interest becomes past due 90 days or, if in management's judgment, reasonable doubt exists as to the full timely collection of interest. Exceptions may be made if the loan has matured and is in the process of renewal or is well-secured and in the process of collection. In addition, loans categorized as ASC 310-30 accrue regardless of past due status. When a loan is placed on nonaccrual status, interest accruals cease and uncollected accrued interest is reversed and charged against current interest income. Interest payments on nonaccrual loans are generally applied to principal. If collection of the principal is reasonably assured, interest payments are recognized as income on the cash basis. Loans are generally returned to accrual status when principal and interest payments are current, full collectability of principal and interest is reasonably assured and a consistent record of at least 6 consecutive months of performance has been achieved.
As of September 30, 2019, the Company had loans and leases greater than 90 days past due and accruing of $11.9 million, or 0.18% of total loans and leases, compared to $13.5 million, or 0.21% of total loans and leases, as of December 31, 2018, representing a decrease of $1.6 million. The decrease in past due and accruing loans was primarily due to one commercial loan which became current, partially offset by previously current relationships which became 90 days past due and accruing during the first nine months of 2019.

68

The following table sets forth information regarding nonperforming assets for the periods indicated:
 
At September 30, 2019
 
At December 31, 2018
 
(Dollars in Thousands)
Nonperforming loans and leases:
 
 
 
Nonaccrual loans and leases:
 
 
 
Commercial real estate
$
2,910

 
$
3,928

Multi-family mortgage
87

 
330

Construction
—

 
396

Total commercial real estate loans
2,997

 
4,654

 
 
 
 
Commercial
3,139

 
6,621

Equipment financing
12,817

 
9,500

Condominium association
163

 
265

Total commercial loans and leases
16,119

 
16,386

 
 
 
 
Residential mortgage
1,605

 
2,132

Home equity
904

 
908

Other consumer
3

 
17

Total consumer loans
2,512

 
3,057

 
 
 
 
Total nonaccrual loans and leases
21,628

 
24,097

 
 
 
 
Other real estate owned
201

 
3,054

Other repossessed assets
1,931

 
965

Total nonperforming assets
$
23,760

 
$
28,116

 
 
 
 
Loans and leases past due greater than 90 days and accruing
$
11,885

 
$
13,482

Total delinquent loans and leases 61-90 days past due
4,842

 
3,308

Restructured loans and leases not included in nonperforming assets
22,233

 
12,257

 
 
 
 
Total nonperforming loans and leases as a percentage of total loans and leases
0.33
%
 
0.38
%
Total nonperforming assets as a percentage of total assets
0.30
%
 
0.38
%
Total delinquent loans and leases 61-90 days past due as a percentage of total loans and leases
0.07
%
 
0.05
%

Troubled Debt Restructured Loans and Leases
Total troubled debt restructured loans increased by $7.1 million to $28.0 million at September 30, 2019 from $20.9 million at December 31, 2018.The increase resulted from commercial, equipment financing and construction relationships being newly classified as troubled debt restructurings and was partially offset by the payoff of a commercial relationship during the first nine months of 2019 as a part of the relationship strategy and which management believes that all troubled debt restructurings are either well collateralized, have adequate cash flow, or both, resulting in minimal impact to the allowance for loan and lease losses.

69

As of September 30, 2019, total restructured loans included $10.9 million of commercial loans, $7.0 million of equipment financing loans and leases, $4.9 million of construction loans, $2.1 million of residential mortgage loans, $1.6 million of home equity loans, $1.4 million of commercial real estate loans, and $0.1 million of multi-family mortgage loans. As of December 31, 2018, total restructured loans included $9.4 million of commercial loans, $5.9 million of equipment financing loans and leases, $2.0 million of commercial real estate loans, $0.3 million of multi-family mortgage loans, $1.7 million of home equity loans, and $1.6 million of residential mortgage loans. A restructured loan is a loan for which the maturity date was extended, the principal was reduced, and/or the interest rate was modified to drop the required monthly payment to a more manageable amount for the borrower.
The following table sets forth information regarding troubled debt restructured loans and leases at the dates indicated:
 
At September 30, 2019
 
At December 31, 2018
 
(Dollars in Thousands)
Troubled debt restructurings:
 

 
 

On accrual
$
22,233

 
$
12,257

On nonaccrual
5,763

 
8,684

Total troubled debt restructurings
$
27,996

 
$
20,941


Changes in troubled debt restructured loans and leases were as follows for the periods indicated:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019

2018
 
(Dollars in Thousands)
Balance at beginning of period
$
36,192

 
$
22,302

 
$
20,941

 
$
26,011

Additions
7,692

 
346

 
15,928

 
5,275

Net charge-offs
(144
)
 
(35
)
 
(1,867
)
 
(723
)
Repayments
(15,744
)
 
(1,177
)
 
(7,006
)
 
(9,127
)
Balance at end of period
$
27,996

 
$
21,436

 
$
27,996

 
$
21,436


Allowances for Credit Losses
The allowance for loan and lease losses consists of general and specific allowances and reflects management's estimate of probable loan and lease losses inherent in the loan portfolio at the balance sheet date. Management uses a consistent and systematic process and methodology to evaluate the adequacy of the allowance for loan and lease losses on a quarterly basis. The allowance is calculated by loan type: commercial real estate loans, commercial loans and leases, and consumer loans, each category of which is further segregated. A formula-based credit evaluation approach is applied to each group that is evaluated collectively, primarily by loss factors, which includes estimates of incurred losses over an estimated Loss Emergence Period ("LEP"), assigned to each risk rating by type, coupled with an analysis of certain loans individually evaluated for impairment. Management continuously evaluates and challenges inputs and assumptions in the allowance for loan and lease losses.
The process to determine the allowance for loan and lease losses requires management to exercise considerable judgment regarding the risk characteristics of the loan portfolios and the effect of relevant internal and external factors. While management evaluates currently available information in establishing the allowance for loan and lease losses, future adjustments to the allowance for loan and lease losses may be necessary if conditions differ substantially from the assumptions used in making the evaluations. Management performs a comprehensive review of the allowance for loan and lease losses on a quarterly basis. In addition, various regulatory agencies, as an integral part of their examination process, periodically review a financial institution's allowance for loan and lease losses and carrying amounts of other real estate owned. Such agencies may require the financial institution to recognize additions to the allowance based on their judgments about information available to them at the time of their examination.
The Company’s general allowance methodology provides a quantification of probable losses in the portfolio. Under the current methodology, Management combines the historical loss information of the Banks to generate a single set of ratios. Management believes it is appropriate to aggregate the ratios as the Banks share common environmental factors, operate in similar markets, and utilize common underwriting standards in accordance with the Company's Credit Policy.
Management employs a similar analysis for the consolidation of the qualitative factors as it does for the quantitative factors. Again, Management believes the combination of the existing nine qualitative factors used at each of the Banks into a

70

single group of factors for use across the Company is appropriate based on the commonality of environmental factors, markets, and underwriting standards among the Banks.
As of September 30, 2019, the Company had a portfolio of approximately $10.4 million in loans secured by taxi medallions issued by the cities of Boston and Cambridge, Massachusetts. As of December 31, 2018, this portfolio was approximately $13.7 million. For collateral valuation purposes, taxi medallions are currently estimated at $35 thousand for Boston and $10 thousand for Cambridge. The Company has no taxi medallion exposure outside Massachusetts.
The following tables present the changes in the allowance for loan and lease losses by portfolio category for the three and nine months ended September 30, 2019 and 2018.
 
At and for the Three Months Ended September 30, 2019
 
Commercial
Real Estate
 
Commercial
 
Consumer
 
Total
 
(In Thousands)
Balance at June 30, 2019
$
28,668

 
$
24,333

 
$
5,634

 
$
58,635

Charge-offs
—

 
(1,175
)
 
(15
)
 
(1,190
)
Recoveries
—

 
772

 
52

 
824

Provision for loan and lease losses
361

 
463

 
42

 
866

Balance at September 30, 2019
$
29,029

 
$
24,393

 
$
5,713

 
$
59,135

 
 
 
 
 
 
 
 
Total loans and leases
$
3,589,451

 
$
1,850,388

 
$
1,206,982

 
$
6,646,821

Total allowance for loan and lease losses as a percentage of total loans and leases
0.81
%
 
1.32
%
 
0.47
%
 
0.89
%
 
At and for the Three Months Ended September 30, 2018
 
Commercial
Real Estate
 
Commercial
 
Consumer
 
Total
 
(In Thousands)
Balance at June 30, 2018
$
27,045

 
$
26,120

 
$
4,816

 
$
57,981

Charge-offs
—

 
(1,198
)
 
(29
)
 
(1,227
)
Recoveries
—

 
619

 
44

 
663

Provision for loan and lease losses
319

 
2,217

 
44

 
2,580

Balance at September 30, 2018
$
27,364

 
$
27,758

 
$
4,875

 
$
59,997

 
 
 
 
 
 
 
 
Total loans and leases
$
3,281,045

 
$
1,777,984

 
$
1,168,678

 
$
6,227,707

Total allowance for loan and lease losses as a percentage of total loans and leases
0.83
%
 
1.56
%
 
0.42
%
 
0.96
%
 
At and for the Nine Months Ended September 30, 2019
 
Commercial
Real Estate
 
Commercial
 
Consumer
 
Total
 
(In Thousands)
Balance at December 31, 2018
$
28,187

 
$
25,283

 
$
5,222

 
$
58,692

Charge-offs
—

 
(7,088
)
 
(56
)
 
(7,144
)
Recoveries
—

 
1,454

 
141

 
1,595

Provision for loan and lease losses
842

 
4,744

 
406

 
5,992

Balance at September 30, 2019
$
29,029

 
$
24,393

 
$
5,713

 
$
59,135

 
 
 
 
 
 
 
 
Total loans and leases
$
3,589,451

 
$
1,850,388

 
$
1,206,982

 
$
6,646,821

Total allowance for loan and lease losses as a percentage of total loans and leases
0.81
%
 
1.32
%
 
0.47
%
 
0.89
%

71

 
At and for the Nine Months Ended September 30, 2018
 
Commercial
Real Estate
 
Commercial
 
Consumer
 
Total
 
(In Thousands)
Balance at December 31, 2017
$
27,112

 
$
26,333

 
$
5,147

 
$
58,592

Charge-offs
(103
)
 
(5,387
)
 
(134
)
 
(5,624
)
Recoveries
—

 
1,972

 
253

 
2,225

Provision (credit) for loan and lease losses
355

 
4,840

 
(391
)
 
4,804

Balance at September 30, 2018
$
27,364

 
$
27,758

 
$
4,875

 
$
59,997

 
 
 
 
 
 
 
 
Total loans and leases
$
3,281,045

 
$
1,777,984

 
$
1,168,678

 
$
6,227,707

Total allowance for loan and lease losses as a percentage of total loans and leases
0.83
%
 
1.56
%
 
0.42
%
 
0.96
%
The allowance for loan and lease losses was $59.1 million as of September 30, 2019, or 0.89% of total loans and leases outstanding. This compared to an allowance for loan and lease losses of $58.7 million, or 0.93% of total loans and leases outstanding, as of December 31, 2018. The decrease in the allowance for loan and lease losses as a percentage of loans and leases is largely a result of changes in historical loss factors and the decrease in specific reserves due to charge-offs in taxi medallion loans, partially offset by the reserves for loan growth of $343.3 million during the first nine months of 2019 or 7.3% on an annualized basis.
Management believes that the allowance for loan and lease losses as of September 30, 2019 is appropriate based on the facts and circumstances discussed further below.
Commercial Real Estate Loans
The allowance for commercial real estate loan losses was $29.0 million, or 0.81% of total commercial real estate loans outstanding, as of September 30, 2019. This compared to an allowance for commercial real estate loan losses of $28.2 million, or 0.84% of total commercial real estate loans outstanding, as of December 31, 2018. There were $8 thousand in specific reserves on commercial real estate loans as of September 30, 2019 as compared to $5 thousand as of December 31, 2018. The $0.8 million increase in the allowance for commercial real estate loans and leases during the first nine months of 2019 was primarily driven by originated loan growth of $286.6 million, or 12.1%, from December 31, 2018, partially offset by changes in historical loss factors applied to commercial real estate loans.
The ratio of total criticized and classified commercial real estate loans to total commercial real estate loans decreased to 0.62% as of September 30, 2019 from 0.64% as of December 31, 2018. The ratio of originated commercial real estate loans on nonaccrual to total originated commercial real estate loans decreased to 0.08% as of September 30, 2019 from 0.14% as of December 31, 2018.
There were no charge-offs or recoveries in the commercial real estate loan portfolio for the three months ended September 30, 2019 and September 30, 2018. As a percentage of average commercial real estate loan portfolio, annualized net charge-offs for the three months ended September 30, 2019 and September 30, 2018 were minimal.
There were no net charge-offs in the commercial real estate loan portfolio for the nine months ended September 30, 2019 compared to net charge-offs of $103 thousand for the nine months ended September 30, 2018. As a percentage of average commercial real estate loan portfolio, annualized net charge-offs for the nine months ended and September 30, 2018 were minimal.
Commercial Loans and Leases
The allowance for commercial loan and lease losses was $24.4 million, or 1.32% of total commercial loans and leases outstanding, as of September 30, 2019, compared to $25.3 million, or 1.43% of total commercial loans and leases outstanding, as of December 31, 2018. Specific reserves on commercial loans and leases decreased from $3.0 million as of December 31, 2018 to $1.6 million as of September 30, 2019, primarily driven by the charge-offs in taxi medallion loans against previously established specific reserves. The $0.9 million decrease in the allowance for commercial loans and leases during the first nine months of 2019 was primarily driven by changes in historical loss factors and the decrease in specific reserves, partially offset by originated loan growth of $87.0 million, or 6.7%, from December 31, 2018.
The ratio of total criticized and classified commercial loans and leases to total commercial loans and leases was 1.81% as of September 30, 2019, compared to 2.10% as of December 31, 2018. The ratio of originated commercial loans and leases on

72

nonaccrual to total originated commercial loans and leases decreased to 0.87% as of September 30, 2019 from 0.93% as of December 31, 2018.
Net charge-offs in the commercial loan and lease portfolio for the three months ended September 30, 2019 and September 30, 2018 were $0.4 million and $0.6 million, respectively. As a percentage of average commercial loans and leases, annualized net charge-offs for the three months ended September 30, 2019 and September 30, 2018 were 0.09% and 0.13%, respectively.
Net charge-offs in the commercial loan and lease portfolio for the nine months ended September 30, 2019 and September 30, 2018 were $5.6 million and $3.4 million, respectively. The increase in net charge-offs in commercial loan and lease portfolio was driven by charge-offs on the equipment financing loans. As a percentage of average commercial loans and leases, annualized net charge-offs for the nine months ended September 30, 2019 and September 30, 2018 were 0.41% and 0.27%, respectively.
Consumer Loans
The allowance for consumer loan losses, including residential loans and home equity loans and lines of credit, was $5.7 million, or 0.47% of total consumer loans outstanding, as of September 30, 2019, compared to $5.2 million, or 0.44% of consumer loans outstanding, as of December 31, 2018. Specific reserves on consumer loans were $112 thousand and $115 thousand as of September 30, 2019 and December 31, 2018, respectively. The $0.5 million increase in the allowance for consumer loans and leases during the first nine months of 2019 was primarily driven by originated loan growth of $53.3 million, or 10.6%, from December 31, 2018.
The ratio of originated consumer loans on nonaccrual to total originated consumer loans decreased to 0.18% as of September 30, 2019 from 0.20% as of December 31, 2018. The risk of loss on a home equity loan is higher since the property securing the loan has often been previously pledged as collateral for a first mortgage loan. The Company gathers and analyzes delinquency data, to the extent that data are available on these first liens, for purposes of assessing the collectability of the second liens held by the Company even if these home equity loans are not delinquent. This data are further analyzed for performance differences between amortizing and non-amortizing home equity loans, the percentage borrowed to total loan commitment and by the amount of payments made by the borrowers. The loss exposure is not considered to be high due to the combination of current property values, the historically low loan-to-value ratios, the low level of losses experienced in the past few years and the low level of loan delinquencies as of September 30, 2019. If the local economy weakens, however, a rise in losses in those loan classes could occur. Historically, losses in these classes have been low.
Net recoveries in the consumer loan portfolio totaled $37 thousand for the three months ended September 30, 2019 compared to net recoveries of $15 thousand for the three months ended September 30, 2018. Provisions for consumer loans recorded in these periods more than adequately covered charge-offs during those periods.
Net recoveries in the consumer loan portfolio totaled $85 thousand for the nine months ended September 30, 2019 compared to net recoveries of $119 thousand for the nine months ended September 30, 2018. Provisions (credit) for consumer loans recorded in these periods more than adequately covered charge-offs during those periods.

73

The following table sets forth the Company's percent of allowance for loan and lease losses to the total allowance for loan and lease losses and the percent of loans to total loans for each of the categories listed at the dates indicated.
 
At September 30, 2019
 
At December 31, 2018
 
Amount
 
Percent of
Allowance in Each Category
to Total
Allowance
 
Percent of
Loans
in Each
Category to
Total
Loans
 
Amount
 
Percent of
Allowance in Each Category
to Total Allowance
 
Percent of
Loans
in Each
Category to
Total
Loans
 
(Dollars in Thousands)
Commercial real estate
$
20,612

 
34.9
%
 
36.7
%
 
$
20,779

 
35.4
%
 
37.0
%
Multi-family mortgage
6,307

 
10.7
%
 
13.9
%
 
5,915

 
10.1
%
 
13.4
%
Construction
2,110

 
3.6
%
 
3.5
%
 
1,494

 
2.5
%
 
2.7
%
Total commercial real estate loans
29,029

 
49.2
%
 
54.1
%
 
28,188

 
48.0
%
 
53.1
%
Commercial
12,264

 
20.7
%
 
11.5
%
 
14,047

 
23.9
%
 
11.7
%
Equipment financing
11,765

 
19.9
%
 
15.5
%
 
10,888

 
18.6
%
 
15.6
%
Condominium association
364

 
0.6
%
 
0.8
%
 
347

 
0.6
%
 
0.8
%
Total commercial loans and leases
24,393

 
41.2
%
 
27.8
%
 
25,282

 
43.1
%
 
28.1
%
Residential mortgage
3,505

 
5.9
%
 
11.9
%
 
3,076

 
5.2
%
 
12.4
%
Home equity
2,088

 
3.5
%
 
5.6
%
 
2,047

 
3.5
%
 
6.0
%
Other consumer
120

 
0.2
%
 
0.6
%
 
99

 
0.2
%
 
0.4
%
Total consumer loans
5,713

 
9.6
%
 
18.1
%
 
5,222

 
8.9
%
 
18.8
%
Total
$
59,135

 
100.0
%
 
100.0
%
 
$
58,692

 
100.0
%
 
100.0
%
Investment Securities
The investment portfolio exists primarily for liquidity purposes, and secondarily as a source of interest and dividend income, interest-rate risk management and tax planning as a counterbalance to loan and deposit flows. Investment securities are utilized as part of the Company's asset/liability management and may be sold in response to, or in anticipation of, factors such as changes in market conditions and interest rates, security prepayment rates, deposit outflows, liquidity concentrations and regulatory capital requirements.
The investment policy of the Company, which is reviewed and approved by the Board of Directors on an annual basis, specifies the types of investments that are acceptable, required investment ratings by at least one nationally recognized rating agency, concentration limits and duration guidelines. Compliance with the investment policy is monitored on a regular basis. In general, the Company seeks to maintain a high degree of liquidity and targets cash, cash equivalents and investment securities available-for-sale balances between 10% and 30% of total assets.
Cash, cash equivalents, and investment securities increased $34.2 million, or 6.4% on an annualized basis, to $745.6 million as of September 30, 2019 from $711.4 million as of December 31, 2018. Cash, cash equivalents, and investment securities were 9.5% of total assets as of September 30, 2019, compared to 9.6% of total assets at December 31, 2018.

74

The following table sets forth certain information regarding the amortized cost and market value of the Company's investment securities at the dates indicated:
 
At September 30, 2019
 
At December 31, 2018
 
Amortized
Cost
 
Fair Value
 
Amortized
Cost
 
Fair Value
 
(In Thousands)
Investment securities available-for-sale:
 
 
 
 
 
 
 
GSE debentures
$
182,966

 
$
186,170

 
$
184,072

 
$
181,079

GSE CMOs
92,883

 
91,851

 
107,363

 
103,130

GSE MBSs
141,853

 
142,079

 
169,334

 
165,089

SBA commercial loan asset- backed securities
37

 
37

 
51

 
51

Corporate debt obligations
32,519

 
32,981

 
40,618

 
39,708

U.S. Treasury bonds
13,842

 
14,221

 
13,812

 
13,736

Total investment securities available-for-sale
$
464,100

 
$
467,339

 
$
515,250

 
$
502,793

Investment securities held-to-maturity:
 
 
 
 
 
 
 
GSE debentures
$
38,624

 
$
38,734

 
$
50,546

 
$
49,601

GSE MBSs
9,937

 
9,835

 
11,426

 
11,131

Municipal obligations
46,102

 
46,763

 
52,304

 
51,598

Foreign government obligations
500

 
470

 
500

 
500

Total investment securities held-to-maturity
$
95,163

 
$
95,802

 
$
114,776

 
$
112,830

Equity securities held-for-trading
 
 
$
4,581

 
 
 
$
4,207


The fair value of investment securities is based principally on market prices and dealer quotes received from third-party, nationally-recognized pricing services for identical investment securities such as U.S. Treasury and agency securities. The Company's marketable equity securities are priced this way and are included in Level 1 of the fair value hierarchy in accordance with ASC 820. These prices are validated by comparing the primary pricing source with an alternative pricing source when available. When quoted market prices for identical securities are unavailable, the Company uses market prices provided by independent pricing services based on recent trading activity and other observable information, including but not limited to market interest-rate curves, referenced credit spreads and estimated prepayment speeds where applicable. These investments include certain U.S. and government agency debt securities, municipal and corporate debt securities, GSE residential MBSs and CMOs, all of which are included in Level 2 and equity securities held-for-trading, which are included in Level 1 and Level 2. Certain fair values are estimated using pricing models and are included in Level 3.

Additionally, management reviews changes in fair value from period to period and performs testing to ensure that prices received from the third parties are consistent with their expectation of the market. Changes in the prices obtained from the pricing service are analyzed from month to month, taking into consideration changes in market conditions including changes in mortgage spreads, changes in U.S. Treasury security yields and changes in generic pricing of 15-year and 30-year securities. Additional analysis may include a review of prices provided by other independent parties, a yield analysis, a review of average life changes using Bloomberg analytics and a review of historical pricing for the particular security.

Maturities, calls and principal repayments for investment securities available-for-sale totaled $50.1 million for the nine months ended September 30, 2019 compared to $64.2 million for the same period in 2018. For the nine months ended September 30, 2019, the Company did not sell any investment securities, compared to $1.5 million in sales for the same period in 2018. For the nine months ended September 30, 2019, the Company did not purchase any investment securities available-for-sale, compared to $73.9 million in purchases of investment securities available-for-sale for the same period in 2018.

Maturities, calls and principal repayments for investment securities held-to-maturity totaled $19.7 million for the nine months ended September 30, 2019 compared to $2.5 million for the same period in 2018. There were no sales of investment securities held-to-maturity for the nine months ended September 30, 2019 and 2018. For the nine months ended September 30, 2019, the Company purchased $0.5 million of investment securities held-to-maturity, compared to $8.9 million in purchases of investment securities held-to-maturity for the same period in 2018.
As of September 30, 2019, the fair value of all investment securities available-for-sale was $467.3 million and carried a total of $3.2 million of net unrealized gains, compared to a fair value of $502.8 million and net unrealized losses of $12.5

75

million as of December 31, 2018. As of September 30, 2019, $169.7 million, or 36.3%, of the portfolio, had gross unrealized losses of $1.6 million. This compares to $466.7 million, or 92.8%, of the portfolio with gross unrealized losses of $12.8 million as of December 31, 2018. The Company's unrealized loss position has decreased in 2019 driven by lower long-term interest rates.
As of September 30, 2019, the fair value of all investment securities held-to-maturity was $95.8 million and carried a total of $0.6 million of net unrealized gains, compared to a fair value of $112.8 million and net unrealized losses of $1.9 million as of December 31, 2018. As of September 30, 2019, $19.9 million, or 20.8%, of the portfolio, had gross unrealized losses of $0.2 million. This compares to $102.1 million, or 90.5%, of the portfolio with gross unrealized losses of $2.0 million as of December 31, 2018. The Company's unrealized loss position decreased in 2019 driven by lower long-term interest rates.
Management believes that these negative differences between amortized cost and fair value do not include credit losses, but rather differences in interest rates between the time of purchase and the time of measurement. It is more likely than not that the Company will not sell or be required to sell the investment securities before recovery, and, as a result, it will recover the amortized cost basis of the investment securities. As such, management has determined that the securities are not other-than-temporarily impaired as of September 30, 2019. If market conditions for securities worsen or the creditworthiness of the underlying issuers deteriorates, it is possible that the Company may recognize additional other-than-temporary impairments in future periods. For additional discussion on how the Company validates fair values provided by the third-party pricing service, see Note 11, “Fair Value of Financial Instruments.”
Restricted Equity Securities
FHLBB Stock—The Company invests in the stock of the FHLBB as one of the requirements to borrow. The Company maintains an excess balance of capital stock, which allows for additional borrowing capacity at each of the Banks. As of September 30, 2019, the excess balance of capital stock was $1.0 million, as compared to $5.0 million excess balance as of December 31, 2018.
As of September 30, 2019, the Company owned stock in the FHLBB with a carrying value of $39.6 million, a decrease of $4.1 million from $43.7 million as of December 31, 2018. As of September 30, 2019, the FHLBB had total assets of $56.9 billion and total capital of $3.2 billion, of which $1.4 billion was retained earnings. The FHLBB stated that it remained in compliance with all regulatory capital ratios as of September 30, 2019 and was classified as "adequately capitalized" by its regulator, based on the FHLBB's financial information as of December 31, 2018.
Federal Reserve Bank Stock—The Company invests in the stock of the Federal Reserve Bank of Boston, as a condition to the Banks' membership in the Federal Reserve System. As of September 30, 2019, the Company owned stock in the Federal Reserve Bank of Boston with a carrying value of $18.1 million, compared to a carrying value of $18.0 million as of December 31, 2018.
Other Stock—The Company invests in a small number of other restricted equity securities which includes Infinex and American Financial Exchange. As of September 30, 2019, the Company owned stock in other restricted equity securities with a carrying value of $0.3 million, compared to a carrying value of $0.1 million as of December 31, 2018.
Deposits

The following table presents the Company's deposit mix at the dates indicated.
 
At September 30, 2019
 
At December 31, 2018
 
Amount
 
Percent
of Total
 
Weighted
Average
Rate
 
Amount
 
Percent
of Total
 
Weighted
Average
Rate
 
(Dollars in Thousands)
Non-interest-bearing deposits:
 
 
 
 
 
 
 
 
 
 
 
Demand checking accounts
$
1,106,684

 
19.3
%
 
—
%
 
$
1,033,551

 
19.0
%
 
—
%
Interest-bearing deposits:
 
 
 
 
 
 
 
 
 
 
 
NOW accounts
340,321

 
5.9
%
 
0.14
%
 
336,317

 
6.2
%
 
0.10
%
Savings accounts
604,481

 
10.6
%
 
0.53
%
 
619,961

 
11.4
%
 
0.32
%
Money market accounts
1,666,231

 
29.1
%
 
1.22
%
 
1,675,050

 
30.7
%
 
1.18
%
Certificate of deposit accounts
2,011,622

 
35.1
%
 
2.35
%
 
1,789,165

 
32.7
%
 
1.58
%
Total interest-bearing deposits
4,622,655

 
80.7
%
 
1.54
%
 
4,420,493

 
81.0
%
 
1.14
%
Total deposits
$
5,729,339

 
100.0
%
 
1.25
%
 
$
5,454,044

 
100.0
%
 
0.92
%

76


Total deposits increased $275.3 million to $5.7 billion as of September 30, 2019, compared to $5.5 billion as of December 31, 2018. Deposits as a percentage of total assets decreased to 72.7% as of September 30, 2019, compared to 73.8% as of December 31, 2018.

As of September 30, 2019, the Company had $338.2 million of brokered deposits compared to $350.7 million as of December 31, 2018. Brokered deposits allow the Company to seek additional funding by attracting deposits from outside the Company's core market. The Company's investment policy limits the amount of brokered deposits to 15% of total assets. Brokered deposits are included in the certificate of deposit balance, which increased $222.5 million during the nine months ended September 30, 2019. Certificates of deposit have also increased as a percentage of total deposits to 35.1% as of September 30, 2019 from 32.7% as of December 31, 2018.

During the nine months ended September 30, 2019, core deposits increased $52.8 million. The ratio of core deposits to total deposits decreased from 67.2% as of December 31, 2018 to 64.9% as of September 30, 2019, primarily due to the shift in deposit mix and increase in certificate of deposit accounts.

The following table sets forth the distribution of the average balances of the Company's deposit accounts for the periods indicated and the weighted average interest rates on each category of deposits presented. Averages for the periods presented are based on daily balances.
 
Three Months Ended September 30,
 
2019
 
2018
 
Average
Balance
 
Percent
of Total
Average
Deposits
 
Weighted
Average
Rate
 
Average
Balance
 
Percent
of Total
Average
Deposits
 
Weighted
Average
Rate
 
(Dollars in Thousands)
Core deposits:
 
 
 
 
 
 
 
 
 
 
 
Non-interest-bearing demand checking accounts
$
1,096,788

 
19.2
%
 
—
%
 
$
1,023,610

 
19.5
%
 
—
%
NOW accounts
335,091

 
5.9
%
 
0.15
%
 
344,760

 
6.6
%
 
0.08
%
Savings accounts
600,609

 
10.5
%
 
0.54
%
 
599,514

 
11.4
%
 
0.31
%
Money market accounts
1,683,548

 
29.4
%
 
1.28
%
 
1,668,402

 
31.8
%
 
1.04
%
Total core deposits
3,716,036

 
65.0
%
 
0.68
%
 
3,636,286

 
69.3
%
 
0.54
%
Certificate of deposit accounts
2,000,941

 
35.0
%
 
2.37
%
 
1,612,551

 
30.7
%
 
1.72
%
Total deposits
$
5,716,977

 
100.0
%
 
1.28
%
 
$
5,248,837

 
100.0
%
 
0.90
%
 
Nine Months Ended September 30,
 
2019
 
2018
 
Average
Balance
 
Percent
of Total
Average
Deposits
 
Weighted
Average
Rate
 
Average
Balance
 
Percent
of Total
Average
Deposits
 
Weighted
Average
Rate
 
(Dollars in Thousands)
Core deposits:
 
 
 
 
 
 
 
 
 
 
 
Non-interest-bearing demand checking accounts
$
1,046,683

 
18.7
%
 
—
%
 
$
986,763

 
19.3
%
 
—
%
NOW accounts
337,671

 
6.0
%
 
0.13
%
 
342,418

 
6.7
%
 
0.08
%
Savings accounts
609,284

 
10.9
%
 
0.47
%
 
619,317

 
12.1
%
 
0.28
%
Money market accounts
1,681,594

 
30.0
%
 
1.29
%
 
1,735,710

 
34.0
%
 
0.81
%
Total core deposits
3,675,232

 
65.5
%
 
0.68
%
 
3,684,208

 
72.1
%
 
0.43
%
Certificate of deposit accounts
1,932,625

 
34.5
%
 
2.30
%
 
1,428,799

 
27.9
%
 
1.53
%
Total deposits
$
5,607,857

 
100.0
%
 
0.93
%
 
$
5,113,007

 
100.0
%
 
0.74
%


77

As of September 30, 2019 and December 31, 2018, the Company had outstanding certificates of deposit of $100,000 or more, maturing as follows:
 
At September 30, 2019
 
At December 31, 2018
 
Amount
 
Weighted
Average Rate
 
Amount
 
Weighted
Average Rate
 
(Dollars in Thousands)
Maturity period:
 
 
 
 
 
 
 
Six months or less
$
365,264

 
2.29
%
 
$
261,170

 
1.63
%
Over six months through 12 months
303,967

 
2.37
%
 
270,897

 
1.97
%
Over 12 months
455,795

 
2.61
%
 
418,167

 
2.38
%
Total certificate of deposit of $100,000 or more
$
1,125,026

 
2.44
%
 
$
950,234

 
2.06
%
Borrowed Funds
The following table sets forth certain information regarding advances from the FHLBB, subordinated debentures and notes and other borrowed funds for the periods indicated:
 
Three Months Ended 
 September 30,
 
Nine Months Ended 
 September 30,
 
2019
 
2018
 
2019
 
2018
 
(Dollars in Thousands)
Borrowed funds:
 
 
 
 
 
 
 
Average balance outstanding
$
922,888

 
$
1,047,594

 
$
926,960

 
$
1,090,372

Maximum amount outstanding at any month-end during the period
986,405

 
1,082,886

 
987,835

 
1,209,310

Balance outstanding at end of period
986,405

 
1,082,886

 
986,405

 
1,082,886

Weighted average interest rate for the period
2.70
%
 
2.39
%
 
2.68
%
 
2.13
%
Weighted average interest rate at end of period
2.62
%
 
2.36
%
 
2.62
%
 
2.36
%
Advances from the FHLBB
On a long-term basis, the Company intends to continue to increase its core deposits. The Company also uses FHLBB borrowings and other wholesale borrowing as part of the Company's overall strategy to fund loan growth and manage interest-rate risk and liquidity. The advances are secured by a blanket security agreement which requires the Banks to maintain certain qualifying assets as collateral, principally mortgage loans and securities in an aggregate amount at least equal to outstanding advances. The maximum amount that the FHLBB will advance to member institutions, including the Company, fluctuates from time to time in accordance with the policies of the FHLBB. The Company may also borrow from the FRB's "discount window" as necessary.
FHLBB borrowings increased by $70.1 million to $854.5 million as of September 30, 2019 from the December 31, 2018 balance of $784.4 million. The increase in FHLBB borrowings was primarily due to an increase in loan balances.
Subordinated Debentures and Notes
As part of the acquisition of BankRI, the Company acquired two $5.0 million subordinated debentures due on June 26, 2033 and March 17, 2034, respectively. The Company is obligated to pay 3-month LIBOR plus 3.10% and 3-month LIBOR plus 2.79%, respectively, on a quarterly basis until the debentures mature.
The Company sold $75.0 million of 6.0% fixed-to-floating rate subordinated notes due September 15, 2029. The Company is obligated to pay 6.0% interest semiannually between September 2014 and September 2024. Subsequently, the Company is obligated to pay 3-month LIBOR plus 3.315% quarterly until the notes mature in September 2029.








78

The following table summarizes the Company's subordinated debentures and notes at the dates indicated.
 
 
 
 
 
 
 
 
Carrying Amount
Issue Date
 
Rate
 
Maturity Date
 
Next Call Date
 
September 30,
2019
 
December 31, 2018
 
 
(Dollars in Thousands)
June 26, 2003
 
Variable;
3-month LIBOR + 3.10%
 
June 26, 2033
 
December 25, 2019
 
$
4,820

 
$
4,803

March 17, 2004
 
Variable;
3-month LIBOR + 2.79%
 
March 17, 2034
 
December 16, 2019
 
4,730

 
4,704

September 15, 2014
 
6.0% Fixed-to-Variable;
3-month LIBOR + 3.315%
 
September 15, 2029
 
September 15, 2024
 
74,001

 
73,926

 
 
 
 
 
 
Total
 
$
83,551

 
$
83,433

The above carrying amounts of the subordinated debentures included $0.4 million of accretion adjustments and $1.0 million of capitalized debt issuance costs as of September 30, 2019. This compares to $0.5 million of accretion adjustments and $1.1 million of capitalized debt issuance costs as of December 31, 2018.
Other Borrowed Funds
In addition to advances from the FHLBB and subordinated debentures and notes, the Company utilizes other funding sources as part of the overall liquidity strategy. Those funding sources include repurchase agreements, and committed and uncommitted lines of credit with several financial institutions.
The Company periodically enters into repurchase agreements with its larger deposit and commercial customers as part of its cash management services which are typically overnight borrowings. Repurchase agreements with customers decreased $14.4 million to $38.4 million as of September 30, 2019 from $52.7 million as of December 31, 2018.
The Company has access to a $12.0 million committed line of credit as of September 30, 2019. As of September 30, 2019 and December 31, 2018, the Company did not have any borrowings on this committed line of credit outstanding.
The Banks also have access to funding through several uncommitted lines of credit of $475.0 million. As of September 30, 2019, the Company had $10 million of borrowings on one uncommitted line of credit outstanding, and none as of December 31, 2018, the Company did not have any borrowings on these uncommitted lines of credit.

79

Derivative Financial Instruments
The Company has entered into loan level derivatives, risk participation agreements, and foreign exchange contracts with certain of its commercial customers and concurrently enters into offsetting swaps with third-party financial institutions. The Company may also, from time to time, enter into risk participation agreements. The Company did not have derivative fair value hedges or derivative cash flow hedges at September 30, 2019 or December 31, 2018.
The following table summarizes certain information concerning the Company's loan level derivatives, risk participation agreements, and foreign exchange contracts at September 30, 2019 and December 31, 2018:
 
At September 30, 2019
At December 31, 2018
 
(Dollars in Thousands)
Loan level derivatives (Notional principal amounts):
 
 
Receive fixed, pay variable
$
992,476

$
719,625

Pay fixed, receive variable
992,476

719,625

Risk participation-out agreements
177,155

100,531

Risk participation-in agreements
56,096

35,838

Foreign exchange contracts (Notional amounts):
 
 
Buys foreign currency, sells U.S. currency
$
1,315

$
6,573

Sells foreign currency, buys U.S. currency
1,420

6,582

Fixed weighted average interest rate from the Company to counterparty
3.69
%
4.25
%
Floating weighted average interest rate from counterparty to the Company
3.24
%
4.00
%
Weighted average remaining term to maturity (in months)
92

90

Fair value:
 
 
Recognized as an asset:
 
 
Loan level derivatives
$
79,857

$
22,013

Risk participation-out agreements
1,555

344

Foreign exchange contracts
22

131

Recognized as a liability:
 
 
Loan level derivatives
$
79,857

$
22,013

Risk participation-in agreements
385

84

Foreign exchange contracts
16

123

Stockholders' Equity and Dividends
The Company's total stockholders' equity was $932.3 million as of September 30, 2019, representing a $32.2 million increase compared to $900.1 million at December 31, 2018. The increase primarily reflects net income attributable to the Company of $65.5 million for the nine months ended September 30, 2019 and unrealized gain on securities available-for-sale of $12.2 million, partially offset by dividends paid by the Company of $25.9 million and $18.7 million related to the acquisition of the noncontrolling interest in Eastern Funding, LLC and in that same period.
Stockholders' equity represented 11.83% of total assets as of September 30, 2019 and 12.18% of total assets as of December 31, 2018. Tangible stockholders' equity (total stockholders' equity less goodwill and identified intangible assets, net) represented 9.94% of tangible assets (total assets less goodwill and identified intangible assets, net) as of September 30, 2019 and 10.15% as of December 31, 2018.
On January 30, 2019, the Board of Directors (the "Board") of the Company approved a stock repurchase program authorizing management to repurchase up to $10.0 million of the Company's common stock. As of September 30, 2019, the Company has repurchased 136,065 shares at a weighted average price of $13.74. In 2018, 725,583 shares of the Company's common stock were repurchased by the Company.
The dividend payout ratio was 38.88% for the three months ended September 30, 2019, compared to 35.81% for the same period in 2018 and 39.58% for the nine months ended September 30, 2019, compared to 37.87% for the same period of 2018.

80

Results of Operations
The primary drivers of the Company's net income are net interest income, which is strongly affected by the net yield on and growth of interest-earning assets and liabilities, the quality of the Company's assets, its levels of non-interest income and non-interest expense, and its tax provision.
The Company's net interest income represents the difference between interest income earned on its investments, loans and leases, and its cost of funds. Interest income is dependent on the amount of interest-earning assets outstanding during the period and the yield earned thereon. Cost of funds is a function of the average amount of deposits and borrowed money outstanding during the year and the interest rates paid thereon. The net interest margin is calculated by dividing net interest income by average interest-earning assets. Net interest spread is the difference between the average rate earned on interest-earning assets and the average rate paid on interest-bearing liabilities. The increases or decreases, as applicable, in the components of interest income and interest expense, expressed in terms of fluctuation in average volume and rate, are summarized under "Rate/Volume Analysis" below. Information as to the components of interest income, interest expense and average rates is provided under "Average Balances, Net Interest Income, Interest-Rate Spread and Net Interest Margin" below.
Because the Company's assets and liabilities are not identical in duration and in repricing dates, the differential between the two is vulnerable to changes in market interest rates as well as the overall shape of the yield curve. These vulnerabilities are inherent to the business of banking and are commonly referred to as "interest-rate risk." How interest-rate risk is measured and, once measured, how much interest-rate risk is taken are based on numerous assumptions and other subjective judgments. See the discussion in “Item 3. Quantitative and Qualitative Disclosures about Market Risk” below.
The quality of the Company's assets also influences its earnings. Loans and leases that are not paid on a timely basis and exhibit other weaknesses can result in the loss of principal and/or interest income. Additionally, the Company must make timely provisions to the allowance for loan and lease losses based on estimates of probable losses inherent in the loan and lease portfolio. These additions, which are charged against earnings, are necessarily greater when greater probable losses are expected. Further, the Company incurs expenses as a result of resolving troubled assets. These variables reflect the "credit risk" that the Company takes on in the ordinary course of business and are further discussed under "Financial Condition—Asset Quality" above.
Net Interest Income
Net interest income increased $0.9 million to $63.2 million for the three months ended September 30, 2019 from $62.3 million for the three months ended September 30, 2018. This increase reflects a $7.7 million increase in interest income on loans and leases, partially offset by a $0.4 million decrease in interest income on investment securities and a $6.4 million increase in interest expense on deposit and borrowings, which is reflective of the various portfolios repricing and replacing balances into the current interest rate environment. Refer to “Results of Operations - Comparison of the Three-Month Period Ended September 30, 2019 and September 30, 2018 — Interest Income” and “Results of Operations - Comparison of the Three-Month Period Ended September 30, 2019 and September 30, 2018 — Interest Expense Deposit and Borrowed Funds” below for more details.
Net interest income increased $4.8 million to $189.4 million for the nine months ended September 30, 2019 from $184.5 million for the nine months ended September 30, 2018. This overall increase reflects a $30.6 million increase in interest income on loans and leases, partially offset by a $0.7 million decrease in interest income on investment securities and a $25.0 million increase in interest expense on deposit and borrowings, which is reflective of the various portfolios repricing and replacing balances into the current interest rate environment. Refer to “Results of Operations - Comparison of the Nine-Month Period Ended September 30, 2019 and September 30, 2018 — Interest Income” and “Results of Operations - Comparison of the Nine-Month Period Ended September 30, 2019 and September 30, 2018 — Interest Expense Deposit and Borrowed Funds” below for more details.
Net interest margin decreased by 12 basis points to 3.45% for the three months ended September 30, 2019 from 3.57% for the three months ended September 30, 2018. The Company's weighted average interest rate on loans (prior to purchase accounting adjustments) increased to 5.08% for the three months ended September 30, 2019 from 4.92% for the three months ended September 30, 2018. Interest amortization and accretion on acquired loans totaled $0.1 million and contributed 1 basis point to loan yields during the three months ended September 30, 2019 compared to $0.3 million, or 2 basis points, for the three months ended September 30, 2018. The decrease in net interest margin over the period is a result of most asset categories being fully repriced into the current rate environment, while deposit costs continue to rise due to market competition and shifting demand for non maturity versus time deposits.
Net interest margin decreased by 8 basis points to 3.54% for the nine months ended September 30, 2019 from 3.62% for the nine months ended September 30, 2018. The Company's weighted average interest rate on loans (prior to purchase accounting adjustments) increased to 5.10% for the nine months ended September 30, 2019 from 4.77% for the nine months

81

ended September 30, 2018. Interest amortization and accretion on acquired loans totaled $0.3 million and contributed 1 basis point to loan yields during the nine months ended September 30, 2019 compared to $0.6 million, or 1 basis point, for the nine months ended September 30, 2018. The decrease in net interest margin over the period is a result of most asset categories being fully repriced into the current rate environment, while deposit costs continue to rise due to market competition and shifting demand for non maturity versus time deposits.
The yield on interest-earning assets increased to 4.83% for the three months ended September 30, 2019 from 4.65% for the three months ended September 30, 2018. This increase is the result of higher yields on loans and leases, partially offset by lower yields on investments. During the three months ended September 30, 2019, the Company recorded $0.9 million in prepayment penalties and late charges, which contributed 5 basis points to yields on interest-earning assets in the three months ended September 30, 2019, compared to $0.9 million, or 5 basis points, for the three months ended September 30, 2018.
The yield on interest-earning assets increased to 4.85% for the nine months ended September 30, 2019 from 4.51% for the nine months ended September 30, 2018. This increase is the result of higher yields on loans and leases and investments. During the nine months ended September 30, 2019, the Company recorded $2.9 million in prepayment penalties and late charges, which contributed 5 basis points to yields on interest-earning assets in the nine months ended September 30, 2019, compared to $2.4 million, or 5 basis points, for the nine months ended September 30, 2018.
The overall cost of funds (including non-interest-bearing demand checking accounts) increased 32 basis points to 1.47% for the three months ended September 30, 2019 from 1.15% for the three months ended September 30, 2018. The overall cost of funds (including non-interest-bearing demand checking accounts) increased 46 basis points to 1.44% for the nine months ended September 30, 2019 from 0.98% for the nine months ended September 30, 2018. Refer to "Financial Condition - Borrowed Funds" above for more details.
Management seeks to position the balance sheet to be neutral to asset sensitive to changes in interest rates. Since the end of 2016, short term interest rates have risen while at the same time net interest income, net interest spread, and net interest margin have also increased. In general, the Company's balance sheet position should respond positively in a rising interest rate environment and when the rate curves are steepening which should result in a positive impact to net interest income, net interest spread, and the net interest margin. A declining interest rate or flattening yield curve environment is expected to have a negative impact on the Company's yields and net interest margin. Additional risk factors include, but are not limited to: ongoing pricing pressures in both the loan and deposit portfolios, the ability to increase the Company's core deposits, decrease its loan-to-deposit ratio, and decrease its reliance on FHLBB advances. Net interest income may also be negatively affected by changes in the amount of accretion on acquired loans and leases, deposits and borrowed funds, which are included in interest income and interest expense, respectively.

82

Average Balances, Net Interest Income, Interest-Rate Spread and Net Interest Margin
The following table sets forth information about the Company's average balances, interest income and interest rates earned on average interest-earning assets, interest expense and interest rates paid on average interest-bearing liabilities, interest-rate spread and net interest margin for the three and nine months ended September 30, 2019 and September 30, 2018. Average balances are derived from daily average balances and yields include fees, costs and purchase-accounting-related premiums and discounts which are considered adjustments to coupon yields in accordance with GAAP. Certain amounts previously reported have been reclassified to conform to the current presentation.

83

 
Three Months Ended
 
September 30, 2019
 
September 30, 2018
 
Average
Balance
 
Interest (1)
 
Average
Yield/
Cost
 
Average
Balance
 
Interest (1)
 
Average
Yield/
Cost
 
(Dollars in Thousands)
Assets:
 
 
 
 
 
 
 
 
 
 
 
Interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
Debt securities
$
573,389

 
$
3,027

 
2.11
%
 
$
663,125

 
$
3,638

 
2.20
%
Marketable and restricted equity securities
59,638

 
885

 
5.94
%
 
67,607

 
1,029

 
6.09
%
Short-term investments
70,707

 
487

 
2.76
%
 
31,061

 
145

 
1.87
%
Total investments
703,734

 
4,399

 
2.50
%
 
761,793

 
4,812

 
2.53
%
Commercial real estate loans (2)
3,539,485

 
41,724

 
4.61
%
 
3,260,634

 
37,332

 
4.48
%
Commercial loans (2)
838,092

 
10,291

 
4.81
%
 
819,383

 
9,862

 
4.72
%
Equipment financing (2)
1,019,179

 
18,519

 
7.27
%
 
933,007

 
16,220

 
6.95
%
Residential mortgage loans (2)
776,482

 
8,215

 
4.23
%
 
756,421

 
7,648

 
4.04
%
Other consumer loans (2)
415,082

 
4,917

 
4.69
%
 
412,248

 
4,928

 
4.73
%
Total loans and leases
6,588,320

 
83,666

 
5.08
%
 
6,181,693

 
75,990

 
4.92
%
Total interest-earning assets
7,292,054

 
88,065

 
4.83
%
 
6,943,486

 
80,802

 
4.65
%
Allowance for loan and lease losses
(59,386
)
 
 
 
 
 
(58,576
)
 
 
 
 
Non-interest-earning assets
513,824

 
 
 
 
 
417,503

 
 
 
 
Total assets
$
7,746,492

 
 
 
 
 
$
7,302,413

 
 
 
 
Liabilities and Stockholders' Equity:
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing deposits:
 
 
 
 
 
 
 
 
 
 
 
NOW accounts
$
335,091

 
129

 
0.15
%
 
$
344,760

 
72

 
0.08
%
Savings accounts
600,609

 
820

 
0.54
%
 
599,514

 
472

 
0.31
%
Money market accounts
1,683,548

 
5,413

 
1.28
%
 
1,668,402

 
4,367

 
1.04
%
Certificate of deposit
2,000,941

 
11,938

 
2.37
%
 
1,612,551

 
7,005

 
1.72
%
Total interest-bearing deposits (3)
4,620,189

 
18,300

 
1.57
%
 
4,225,227

 
11,916

 
1.12
%
Advances from the FHLBB
759,738

 
4,859

 
2.50
%
 
907,306

 
4,979

 
2.15
%
Subordinated debentures and notes
83,530

 
1,300

 
6.22
%
 
83,370

 
1,301

 
6.24
%
Other borrowed funds
79,620

 
211

 
1.05
%
 
56,918

 
108

 
0.75
%
Total borrowed funds
922,888

 
6,370

 
2.70
%
 
1,047,594

 
6,388

 
2.39
%
Total interest-bearing liabilities
5,543,077

 
24,670

 
1.77
%
 
5,272,821

 
18,304

 
1.38
%
Non-interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
Non-interest-bearing demand checking accounts
1,096,788

 
 

 
 

 
1,023,610

 
 

 
 

Other non-interest-bearing liabilities
178,564

 
 

 
 

 
107,449

 
 

 
 

Total liabilities
6,818,429

 
 

 
 

 
6,403,880

 
 

 
 

Brookline Bancorp, Inc. stockholders' equity
928,063

 
 

 
 

 
889,259

 
 

 
 

Noncontrolling interest in subsidiary
—

 
 

 
 

 
9,274

 
 

 
 

Total liabilities and stockholders' equity
$
7,746,492

 
 

 
 

 
$
7,302,413

 
 

 
 

Net interest income (tax-equivalent basis) / Interest-rate spread (4)
 

 
63,395

 
3.06
%
 
 

 
62,498

 
3.27
%
Less adjustment of tax-exempt income
 

 
159

 
 

 
 

 
166

 
 

Net interest income
 

 
$
63,236

 
 

 
 

 
$
62,332

 
 

Net interest margin (5)
 

 
 

 
3.45
%
 
 

 
 

 
3.57
%
_________________________________________________________________________
(1) Tax-exempt income on debt securities, equity securities and industrial revenue bonds are included in commercial real estate loans on a tax-equivalent basis.
(2) Loans on nonaccrual status are included in the average balances.
(3) Including non-interest-bearing checking accounts, the average interest rate on total deposits was 1.27% and 0.90% in the three months ended September 30, 2019 and September 30, 2018, respectively.
(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.

84

 
Nine Months Ended
 
September 30, 2019
 
September 30, 2018
 
Average
Balance
 
Interest (1)
 
Average
Yield/
Cost
 
Average
Balance
 
Interest (1)
 
Average
Yield/
Cost
 
(Dollars in Thousands)
Assets:
 
 
 
 
 
 
 
 
 
 
 
Interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
Debt securities
$
591,535

 
$
9,526

 
2.15
%
 
$
658,993

 
$
10,632

 
2.15
%
Marketable and restricted equity securities
59,747

 
2,693

 
6.01
%
 
67,056

 
2,956

 
5.88
%
Short-term investments
49,833

 
1,105

 
2.96
%
 
34,295

 
444

 
1.73
%
Total investments
701,115

 
13,324

 
2.53
%
 
760,344

 
14,032

 
2.46
%
Commercial real estate loans (2)
3,454,996

 
123,106

 
4.70
%
 
3,209,798

 
107,133

 
4.40
%
Commercial loans (2)
814,392

 
29,773

 
4.82
%
 
809,849

 
27,609

 
4.50
%
Equipment financing (2)
1,004,363

 
54,795

 
7.27
%
 
905,345

 
46,823

 
6.90
%
Residential mortgage loans (2)
776,440

 
24,524

 
4.21
%
 
740,507

 
21,933

 
3.95
%
Other consumer loans (2)
413,645

 
15,155

 
4.89
%
 
400,304

 
13,333

 
4.45
%
Total loans and leases
6,463,836

 
247,353

 
5.10
%
 
6,065,803

 
216,831

 
4.77
%
Total interest-earning assets
7,164,951

 
260,677

 
4.85
%
 
6,826,147

 
230,863

 
4.51
%
Allowance for loan and lease losses
(58,759
)
 
 
 
 
 
(58,935
)
 
 
 
 
Non-interest-earning assets
479,046

 
 
 
 
 
401,999

 
 
 
 
Total assets
$
7,585,238

 
 
 
 
 
$
7,169,211

 
 
 
 
Liabilities and Stockholders' Equity:
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing deposits:
 
 
 
 
 
 
 
 
 
 
 
NOW accounts
$
337,671

 
321

 
0.13
%
 
$
342,418

 
195

 
0.08
%
Savings accounts
609,284

 
2,154

 
0.47
%
 
619,317

 
1,278

 
0.28
%
Money market accounts
1,681,594

 
16,259

 
1.29
%
 
1,735,710

 
10,455

 
0.81
%
Certificate of deposit
1,932,625

 
33,226

 
2.30
%
 
1,428,799

 
16,306

 
1.53
%
Total interest-bearing deposits (3)
4,561,174

 
51,960

 
1.52
%
 
4,126,244

 
28,234

 
0.91
%
Advances from the FHLBB
758,992

 
14,294

 
2.48
%
 
960,399

 
13,423

 
1.84
%
Subordinated debentures and notes
83,491

 
3,913

 
6.25
%
 
83,330

 
3,879

 
6.21
%
Other borrowed funds
84,477

 
640

 
1.01
%
 
46,643

 
273

 
0.78
%
Total borrowed funds
926,960

 
18,847

 
2.68
%
 
1,090,372

 
17,575

 
2.13
%
Total interest-bearing liabilities
5,488,134

 
70,807

 
1.72
%
 
5,216,616

 
45,809

 
1.17
%
Non-interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
Non-interest-bearing demand checking accounts
1,046,683

 
 

 
 

 
986,763

 
 

 
 

Other non-interest-bearing liabilities
141,305

 
 

 
 

 
92,280

 
 

 
 

Total liabilities
6,676,122

 
 

 
 

 
6,295,659

 
 

 
 

Brookline Bancorp, Inc. stockholders' equity
908,994

 
 

 
 

 
864,675

 
 

 
 

Noncontrolling interest in subsidiary
122

 
 

 
 

 
8,877

 
 

 
 

Total liabilities and stockholders' equity
$
7,585,238

 
 

 
 

 
$
7,169,211

 
 

 
 

Net interest income (tax-equivalent basis) / Interest-rate spread (4)
 

 
189,870

 
3.13
%
 
 

 
185,054

 
3.34
%
Less adjustment of tax-exempt income
 

 
501

 
 

 
 

 
514

 
 

Net interest income
 

 
$
189,369

 
 

 
 

 
$
184,540

 
 

Net interest margin (5)
 

 
 

 
3.54
%
 
 

 
 

 
3.62
%
_________________________________________________________________________
(1) Tax-exempt income on debt securities, equity securities and industrial revenue bonds are included in commercial real estate loans on a tax-equivalent basis.
(2) Loans on nonaccrual status are included in the average balances.
(3) Including non-interest-bearing checking accounts, the average interest rate on total deposits was 1.24% and 0.74% in the nine months ended September 30, 2019 and September 30, 2018, respectively.
(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.

85

Rate/Volume Analysis
The following table presents, on a tax-equivalent basis, the extent to which changes in interest rates and changes in volume of interest-earning assets and interest-bearing liabilities have affected the Company's interest income and interest expense during the periods indicated. Information is provided in each category with respect to: (i) changes attributable to changes in volume (changes in volume multiplied by prior rate), (ii) changes attributable to changes in rate (changes in rate multiplied by prior volume), and (iii) the net change. The changes attributable to the combined impact of volume and rate have been allocated proportionately to the changes due to volume and the changes due to rate.
 
Three Months Ended September 30, 2019 as Compared to the Three Months Ended September 30, 2018
 
Nine Months Ended September 30, 2019 as Compared to the Nine Months Ended September 30, 2018
 
Increase
(Decrease) Due To
 
 
 
Increase
(Decrease) Due To
 
 
 
Volume
 
Rate
 
Net Change
 
Volume
 
Rate
 
Net Change
 
(In Thousands)
Interest and dividend income:
 
 
 
 
 
 
 
 
 
 
 
Investments:
 
 
 
 
 
 
 
 
 
 
 
Debt securities
$
(469
)
 
$
(142
)
 
$
(611
)
 
$
(1,106
)
 
$
—

 
$
(1,106
)
Marketable and restricted equity securities
(119
)
 
(25
)
 
(144
)
 
(327
)
 
64

 
(263
)
Short-term investments
249

 
93

 
342

 
257

 
404

 
661

Total investments
(339
)
 
(74
)
 
(413
)
 
(1,176
)
 
468

 
(708
)
Loans and leases:
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate loans
3,279

 
1,113

 
4,392

 
8,440

 
7,533

 
15,973

Commercial loans and leases
234

 
195

 
429

 
158

 
2,006

 
2,164

Equipment financing
1,534

 
765

 
2,299

 
5,349

 
2,623

 
7,972

Residential mortgage loans
204

 
363

 
567

 
1,100

 
1,491

 
2,591

Other consumer loans
32

 
(43
)
 
(11
)
 
459

 
1,363

 
1,822

Total loans
5,283

 
2,393

 
7,676

 
15,506

 
15,016

 
30,522

Total change in interest and dividend income
4,944

 
2,319

 
7,263

 
14,330

 
15,484

 
29,814

Interest expense:
 
 
 
 
 
 
 
 
 
 
 
Deposits:
 
 
 
 
 
 
 
 
 
 
 
NOW accounts
(2
)
 
59

 
57

 
(3
)
 
129

 
126

Savings accounts
1

 
347

 
348

 
(21
)
 
897

 
876

Money market accounts
40

 
1,006

 
1,046

 
(333
)
 
6,137

 
5,804

Certificate of deposit
1,920

 
3,013

 
4,933

 
6,971

 
9,949

 
16,920

Total deposits
1,959

 
4,425

 
6,384

 
6,614

 
17,112

 
23,726

Borrowed funds:
 
 
 
 
 
 
 
 
 
 
 
Advances from the FHLBB
(860
)
 
740

 
(120
)
 
(3,131
)
 
4,002

 
871

Subordinated debentures and notes
3

 
(4
)
 
(1
)
 
8

 
26

 
34

Other borrowed funds
51

 
52

 
103

 
269

 
98

 
367

Total borrowed funds
(806
)
 
788

 
(18
)
 
(2,854
)
 
4,126

 
1,272

Total change in interest expense
1,153

 
5,213

 
6,366

 
3,760

 
21,238

 
24,998

Change in tax-exempt income
(7
)
 
—

 
(7
)
 
(13
)
 
—

 
(13
)
Change in net interest income
$
3,798

 
$
(2,894
)
 
$
904

 
$
10,583

 
$
(5,754
)
 
$
4,829



86

Interest Income

Loans and Leases
 
Three Months Ended September 30,
 
Dollar
Change
 
Percent
Change
 
Nine Months Ended 
 September 30,
 
Dollar
Change
 
Percent
Change
 
2019

2018
 
 
 
2019
 
2018
 
 
 
(Dollars in Thousands)
Interest income—loans and leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate loans
$
41,723

 
$
37,333

 
$
4,390

 
11.8
 %
 
$
123,106

 
$
107,134

 
$
15,972

 
14.9
%
Commercial loans
10,190

 
9,748

 
442

 
4.5
 %
 
29,456

 
27,255

 
2,201

 
8.1
%
Equipment financing
18,520

 
16,221

 
2,299

 
14.2
 %
 
54,795

 
46,823

 
7,972

 
17.0
%
Residential mortgage loans
8,215

 
7,648

 
567

 
7.4
 %
 
24,524

 
21,933

 
2,591

 
11.8
%
Other consumer loans
4,918

 
4,927

 
(9
)
 
(0.2
)%
 
15,155

 
13,333

 
1,822

 
13.7
%
Total interest income—loans and leases
$
83,566

 
$
75,877

 
$
7,689

 
10.1
 %
 
$
247,036

 
$
216,478

 
$
30,557

 
14.1
%
Interest income from loans and leases was $83.6 million for the three months ended September 30, 2019, and represented a yield on total loans of 5.08%. This compares to $75.9 million of interest on loans and a yield of 4.92% for September 30, 2018. The $7.7 million increase in interest income from loans and leases was primarily attributable to $5.3 million in origination volume and $2.4 million in a change in interest rates.
Accretion on acquired loans and leases totaled $0.1 million, or 1 basis point to the Company's net interest margin for the three months ended September 30, 2019, compared to $0.3 million and 2 basis points for the three months ended September 30, 2018.
Interest income from loans and leases was $247.0 million for the nine months ended September 30, 2019, and represented a yield on total loans of 5.10%. This compares to $216.5 million of interest on loans and a yield of 4.77% for September 30, 2018. The $30.5 million increase in interest income from loans and leases was primarily attributable to an increase of $15.5 million due to an increase in origination volume and an increase of $15.0 million due to the changes in interest rates.
Accretion on acquired loans and leases totaled $0.3 million, or 1 basis point to the Company's net interest margin for the nine months ended September 30, 2019, compared to $0.6 million and 1 basis point for the nine months ended September 30, 2018.
Investments
 
Three Months Ended September 30,
 
Dollar
Change
 
Percent
Change
 
Nine Months Ended September 30,
 
Dollar
Change
 
Percent
Change
 
2019
 
2018
 
 
 
2019
 
2018
 
 
 
(Dollars in Thousands)
Interest income—investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt securities
$
2,977

 
$
3,585

 
$
(608
)
 
(17.0
)%
 
$
9,371

 
$
10,471

 
$
(1,100
)
 
(10.5
)%
Marketable and restricted equity securities
876

 
1,029

 
(153
)
 
(14.9
)%
 
2,664

 
2,956

 
(292
)
 
(9.9
)%
Short-term investments
487

 
145

 
342

 
235.9
 %
 
1,105

 
444

 
661

 
148.9
 %
Total interest income—investments
$
4,340

 
$
4,759

 
$
(419
)
 
(8.8
)%
 
$
13,140

 
$
13,871

 
$
(731
)
 
(5.3
)%
Total investment income was $4.3 million for the three months ended September 30, 2019 compared to $4.8 million for the three months ended September 30, 2018. As of September 30, 2019 and 2018, the yield on total investments was 2.5%. The year over year decrease in interest income on investments of $419 thousand, or 8.8%, was primarily driven by a $74 thousand decrease due to rates and a $339 thousand decrease due to volume.
Total investment income was $13.1 million and $13.9 million for the nine months ended September 30, 2019 and September 30, 2018, respectively. For the nine months ended September 30, 2019 and 2018, the yield on total investments was 2.5%. The year-over-year decrease in interest income on investments of $731 thousand, or 5.3%, was primarily driven by a $468 thousand increase due to rates and a $1,176 thousand decrease due to volume.

87

Interest Expense—Deposits and Borrowed Funds
 
Three Months Ended September 30,
 
Dollar
Change
 
Percent
Change
 
Nine Months Ended September 30,
 
Dollar
Change
 
Percent
Change
 
2019
 
2018
 
 
 
2019
 
2018
 
 
 
(Dollars in Thousands)
Interest expense:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NOW accounts
$
129

 
$
72

 
$
57

 
79.2
 %
 
$
321

 
$
195

 
$
126

 
64.6
%
Savings accounts
820

 
472

 
348

 
73.7
 %
 
2,154

 
1,278

 
876

 
68.5
%
Money market accounts
5,413

 
4,367

 
1,046

 
24.0
 %
 
16,259

 
10,455

 
5,804

 
55.5
%
Certificates of deposit
11,938

 
7,005

 
4,933

 
70.4
 %
 
33,226

 
16,306

 
16,920

 
103.8
%
Total interest expense - deposits
18,300

 
11,916

 
6,384

 
53.6
 %
 
51,960

 
28,234

 
23,726

 
84.0
%
Borrowed funds:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Advances from the FHLBB
4,859

 
4,979

 
(120
)
 
(2.4
)%
 
14,294

 
13,423

 
871

 
6.5
%
Subordinated debentures and notes
1,300

 
1,301

 
(1
)
 
(0.1
)%
 
3,913

 
3,879

 
34

 
0.9
%
Other borrowed funds
211

 
108

 
103

 
95.4
 %
 
640

 
273

 
367

 
134.4
%
Total interest expense - borrowed funds
6,370

 
6,388

 
(18
)
 
(0.3
)%
 
18,847

 
17,575

 
1,272

 
7.2
%
Total interest expense
$
24,670

 
$
18,304

 
$
6,366

 
34.8
 %
 
$
70,807

 
$
45,809

 
$
24,998

 
54.6
%
Deposits
For the three months ended September 30, 2019, interest expense on deposits increased $6.4 million, or 53.6%, as compared to the same period in 2018. Interest expense increased $4.4 million due to an increase in interest rates and $2.0 million due to the growth in deposits. Purchase accounting amortization on acquired deposits for the three months ended September 30, 2019 was $66 thousand and no basis points, compared to $245 thousand and 1 basis point for the three months ended September 30, 2018.
Interest expense on deposits increased $23.7 million, or 84.0%, to $52.0 million for the nine months ended September 30, 2019 from $28.2 million for the nine months ended September 30, 2018. The increase in interest expense on deposits was due to a $17.1 million increase due to rate increases and a $6.6 million increase due to growth in deposits. Purchase accounting amortization on acquired deposits for the nine months ended September 30, 2019 was $316 thousand and 1 basis point, compared to $572 thousand and 1 basis point for the nine months ended September 30, 2018.
Borrowed Funds
During the three months ended September 30, 2019, interest paid on borrowed funds remained consistent at $6.4 million year over year. The cost of borrowed funds increased to 2.70% for the three months ended September 30, 2019 from 2.39% for the three months ended September 30, 2018. For the three months ended September 30, 2019, there was purchase accounting accretion of $14.0 thousand and no basis points on acquired borrowed funds compared to accretion of $15 thousand and zero basis points for the three months ended September 30, 2018.
Interest expense on borrowed funds increased by $1.3 million, or 7.2%, to $18.8 million for the nine months ended September 30, 2019 from $17.6 million for the nine months ended September 30, 2018. The cost of borrowed funds increased to 2.68% for the nine months ended September 30, 2019 from 2.13% for the nine months ended September 30, 2018. The increase in interest expense was driven by an increase of $4.1 million due to borrowing rates, partially offset by a decrease of $2.9 million due to volume. For the nine months ended September 30, 2019, there was purchase accounting accretion of $43 thousand and no basis points on acquired borrowed funds compared to accretion of $46 thousand and zero basis points for the nine months ended September 30, 2018.

88

Provision for Credit Losses
The provisions for credit losses are set forth below:
 
Three Months Ended September 30,
 
Dollar
Change
 
Percent
Change
 
Nine Months Ended September 30,
 
Dollar
Change
 
Percent
Change
 
2019

2018
 
 
 
2019
 
2018
 
 
 
(Dollars in Thousands)
Provision for loan and lease losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
$
361

 
$
319

 
$
42

 
13.2
 %
 
$
842

 
$
355

 
$
487

 
(137.2
)%
Commercial
463

 
2,217

 
(1,754
)
 
(79.1
)%
 
4,744

 
4,840

 
(96
)
 
(2.0
)%
Consumer
42

 
44

 
(2
)
 
4.5
 %
 
406

 
(391
)
 
797

 
(203.8
)%
Total provision for loan and 
lease losses
866

 
2,580

 
(1,714
)
 
(66.4
)%
 
5,992

 
4,804

 
1,188

 
24.7
 %
Unfunded credit commitments
5

 
137

 
(132
)
 
(96.4
)%
 
(11
)
 
24

 
(35
)
 
(145.8
)%
Total provision for credit losses
$
871

 
$
2,717

 
$
(1,846
)
 
(67.9
)%
 
$
5,981

 
$
4,828

 
$
1,153

 
23.9
 %
For the three months ended September 30, 2019, the provision for credit losses decreased $1.8 million, or 67.9%, to $0.9 million from $2.7 million for the three months ended September 30, 2018. The decrease in the provision for credit losses for the three months ended September 30, 2019 was primarily driven by the decrease in net charge-offs and changes in historical loss factors, partially offset by the increase in reserves for loan growth during the third quarter of 2019.
For the nine months ended September 30, 2019, the provision for credit losses increased $1.2 million, or 23.9%, to $6.0 million from $4.8 million for the nine months ended September 30, 2018. The increase in the provision for credit losses for the nine months ended September 30, 2019 was primarily driven by an increase in net charge-offs, partially offset by the decrease in reserves due to changes in historical loss factors during the first nine months of 2019.
See management’s discussion of “Financial Condition — Allowance for Loan and Lease Losses” and Note 5, “Allowance for Loan and Lease Losses,” to the unaudited consolidated financial statements for a description of how management determined the allowance for loan and lease losses for each portfolio and class of loans.
Non-Interest Income
The following table sets forth the components of non-interest income:
 
Three Months Ended September 30,
 
Dollar
Change
 
Percent
Change
 
Nine Months Ended September 30,
 
Dollar
Change
 
Percent
Change
 
2019

2018
 
 
 
2019
 
2018
 
 
 
(Dollars in Thousands)
Deposit fees
$
2,710

 
$
2,648

 
$
62

 
2.3
%
 
$
7,913

 
$
7,731

 
$
182

 
2.4
 %
Loan fees
719

 
417

 
302

 
72.4
%
 
1,530

 
1,037

 
493

 
47.5
 %
Loan level derivative income, net
2,251

 
2,192

 
59

 
2.7
%
 
5,768

 
3,629

 
2,139

 
58.9
 %
Gain (loss) on investment securities
(116
)
 
—

 
(116
)

100.0
%
 
375

 
1,162

 
(787
)
 
(67.7
)%
Gain on sales of loans and leases held-for-sale
550

 
535

 
15

 
2.8
%
 
1,400

 
1,556

 
(156
)
 
(10.0
)%
Other
1,815

 
1,277

 
538

 
42.1
%
 
5,051

 
3,648

 
1,403

 
38.5
 %
Total non-interest income
$
7,929

 
$
7,069

 
$
860

 
12.2
%
 
$
22,037

 
$
18,763

 
$
3,274

 
17.4
 %
For the three months ended September 30, 2019, non-interest income increased $0.9 million, or 12.2%, to $7.9 million as compared to $7.1 million for the same period of 2018. This increase is primarily due to a $0.5 million increase in other income, and a $0.3 million increase in loan fees.
For the nine months ended September 30, 2019, non-interest income increased $3.3 million, or 17.4%, to $22.0 million as compared to $18.8 million for the same period in 2018. This increase is primarily due to a $2.1 million increase in loan level

89

derivative income and a $1.4 million increase in other income, partially offset by a $0.8 million decrease in gain on sales of investment securities.
Loan level derivative income increased $0.1 million, or 2.7%, to $2.3 million for the three months ended September 30, 2019 from $2.2 million for the same period in 2018 and increased $2.1 million, or 58.9%, to $5.8 million for the nine months ended September 30, 2019 from $3.6 million for the same period in 2018, primarily driven by an increase of two and eight loan level derivative transactions completed for the three and nine months ended September 30, 2019, respectively.
Gain (loss) on investment securities decreased $0.1 million, or 100.0%, to a loss of $0.1 million for the three months ended September 30, 2019 from zero for the same period in 2018, primarily driven by equity securities held for trading in the third quarter of 2019, as compared to no equity securities held for trading for the same period in 2018 and decreased $0.8 million, or 67.7%, to $0.4 million for the nine months ended September 30, 2019 from $1.2 million for the same period in 2018, primarily driven by restricted equity securities sold in 2018.
Other income increased $0.5 million, or 42.1%, to $1.8 million for the three months ended September 30, 2019 from $1.3 million for the same period in 2018, and increased $1.4 million, or 38.5% to $5.1 million for the nine months ended September 30, 2019 from $3.6 million for the same period in 2018, primarily driven by an increase in gain on interest rate derivatives, agency commissions insurance and foreign exchange outgoing wire income.
Non-Interest Expense
The following table sets forth the components of non-interest expense:
 
Three Months Ended September 30,
 
Dollar
Change
 
Percent
Change
 
Nine Months Ended September 30,
 
Dollar
Change
 
Percent
Change
 
2019
 
2018
 
 
 
2019
 
2018
 
 
 
(Dollars in Thousands)
Compensation and employee benefits
$
24,871

 
$
22,338

 
$
2,533

 
11.3
 %
 
$
72,567

 
$
67,217

 
$
5,350

 
8.0
 %
Occupancy
3,895

 
3,913

 
(18
)
 
(0.5
)%
 
11,594

 
11,751

 
(157
)
 
(1.3
)%
Equipment and data processing
4,749

 
4,601

 
148

 
3.2
 %
 
14,051

 
13,587

 
464

 
3.4
 %
Professional services
1,083

 
1,075

 
8

 
0.7
 %
 
3,246

 
3,274

 
(28
)
 
(0.9
)%
FDIC insurance
54

 
846

 
(792
)
 
(93.6
)%
 
1,392

 
1,995

 
(603
)
 
(30.2
)%
Advertising and marketing
1,035

 
1,068

 
(33
)
 
(3.1
)%
 
3,216

 
3,243

 
(27
)
 
(0.8
)%
Amortization of identified intangible assets
421

 
537

 
(116
)
 
(21.6
)%
 
1,243

 
1,543

 
(300
)
 
(19.4
)%
Merger and restructuring expense
1,125

 
22

 
1,103

 
5,013.6
 %
 
1,125

 
3,261

 
(2,136
)
 
(65.5
)%
Other
2,958

 
2,910

 
48

 
1.6
 %
 
10,232

 
9,079

 
1,153

 
12.7
 %
Total non-interest expense
$
40,191

 
$
37,310

 
$
2,881

 
7.7
 %
 
$
118,666

 
$
114,950

 
$
3,716

 
3.2
 %
For the three months ended September 30, 2019, non-interest expense increased $2.9 million, or 7.7%, to $40.2 million as compared to $37.3 million for the same period in 2018. The increase is due to a $2.5 million increase in compensation and employee benefits expense, and a $1.1 million increase in merger and restructuring expense, partially offset by a decrease of $0.8 million in FDIC insurance.
For the nine months ended September 30, 2019, non-interest expense increased $3.7 million, or 3.2%, to $118.7 million million as compared to $115.0 million for the same period in 2018. This increase is primarily due to a $5.4 million increase in compensation and employee benefits expense, and a $1.2 million increase in other expense, partially offset by a $2.1 million decrease in merger and restructuring expense and a decrease of $0.6 million in FDIC insurance.
Compensation and employee benefits expense increased $2.5 million, or 11.3%, to $24.9 million for the three months ended September 30, 2019 from $22.3 million for the same period in 2018, and increased $5.4 million, or 8.0%, to $72.6 million for the nine months ended September 30, 2019 from $67.2 million for the same period in 2018, primarily driven by increases in employee headcount and salaries.

90

FDIC insurance expense decreased $0.8 million, or 93.6%, to $54.0 thousand for the three months ended September 30, 2019 from $0.8 million for the same period in 2018, and decreased $0.6 million, or 30.2%, to $1.4 million for the nine months ended September 30, 2019 from $2.0 million for the same period in 2018, primarily driven by FDIC bank assessment credits.
Merger and restructuring expense increased $1.1 million, or 5,013.6%, to $1.1 million for the three months ended September 30, 2019 from $22 thousand for the same period in 2018, and decreased $2.1 million, or 65.5%, to $1.1 million for the nine months ended September 30, 2019 from $3.3 million for the same period in 2018, due to the First Ipswich Bank charter consolidation and the First Commons Bank acquisition in 2018.
Other non-interest expense increased $48.0 thousand, or 1.6%, to $3.0 million for the three months ended September 30, 2019 from $2.9 million for the same period in 2018, and increased $1.2 million, or 12.7%, to $10.2 million for the nine months ended September 30, 2019 from $9.1 million for the same period in 2018, primarily due to increases in loan workout expense, deferred loan expense, and charitable contributions.
Provision for Income Taxes
 
Three Months Ended September 30,
 
Dollar
Change
 
Percent
Change
 
Nine Months Ended September 30,
 
Dollar
Change
 
Percent
Change
 
2019

2018
 
 
 
2019
 
2018
 
 
 
(Dollars in Thousands)
Income before provision for income taxes
$
30,103

 
$
29,374

 
$
729

 
2.5
 %
 
$
86,759

 
$
83,525

 
$
3,234

 
3.9
%
Provision for income taxes
7,507

 
6,140

 
1,367

 
22.3
 %
 
21,182

 
19,134

 
2,048

 
10.7
%
Net income, before non-controlling interest in subsidiary
$
22,596

 
$
23,234

 
$
(638
)
 
(2.7
)%
 
$
65,577

 
$
64,391

 
$
1,186

 
1.8
%
Effective tax rate
24.9
%
 
20.9
%
 
N/A

 
19.1
 %
 
24.4
%
 
22.9
%
 
N/A

 
6.6
%
The Company recorded income tax expense of $7.5 million for the three months ended September 30, 2019, compared to $6.1 million for the three months ended September 30, 2018, representing effective tax rates of 24.9% and 20.9%, respectively.
The Company recorded income tax expense of $21.2 million for the nine months ended September 30, 2019, compared to $19.1 million for the nine months ended September 30, 2018, representing effective tax rates of 24.4% and 22.9%, respectively.
The changes in the Company's effective tax rate for the three and nine months ended September 30, 2019 and 2018 were primarily driven by the changes in discrete items that were recognized during each period.
Liquidity and Capital Resources
Liquidity
Liquidity is defined as the ability to meet current and future financial obligations of a short-term nature. The Company further defines liquidity as the ability to respond to the needs of depositors and borrowers, as well as to earnings enhancement opportunities, in a changing marketplace. Liquidity management is monitored by an Asset/Liability Committee ("ALCO"), consisting of members of management, which is responsible for establishing and monitoring liquidity targets as well as strategies and tactics to meet these targets.
The primary source of funds for the payment of dividends and expenses by the Company is dividends paid to it by the Banks and Brookline Securities Corp. The primary sources of liquidity for the Banks consist of deposit inflows, loan repayments, borrowed funds, and maturing investment securities.
Deposits, which are considered the most stable source of liquidity, totaled $5.7 billion as of September 30, 2019 and represented 85.3% of total funding (the sum of total deposits and total borrowings), compared to deposits of $5.5 billion, or 85.6% of total funding, as of December 31, 2018. Core deposits, which consist of demand checking, NOW, savings and money market accounts, totaled $3.7 billion as of September 30, 2019 and represented 64.9% of total deposits, compared to core deposits of $3.7 billion, or 67.2% of total deposits, as of December 31, 2018. Additionally, the Company had $338.2 million of brokered deposits as of September 30, 2019, which represented 5.9% of total deposits, compared to $350.7 million or 6.4% of total deposits, as of December 31, 2018. The Company offers attractive interest rates based on market conditions to increase deposits balances, while managing cost of funds.
Borrowings are used to diversify the Company's funding mix and to support asset growth. When profitable lending and investment opportunities exist, access to borrowings provides a means to grow the balance sheet. Borrowings totaled $986.4

91

million as of September 30, 2019, representing 14.7% of total funding, compared to $920.5 million, or 14.4% of total funding, as of December 31, 2018.
As members of the FHLBB, the Banks have access to both short- and long-term borrowings. As of September 30, 2019, the Company's total borrowing limit from the FHLBB for advances and repurchase agreements was $2.1 billion, compared to $2.1 billion as of December 31, 2018, based on the level of qualifying collateral available for these borrowings.
As of September 30, 2019, the Banks also have access to funding through certain uncommitted lines of credit of $475.0 million.
The Company had a $12.0 million committed line of credit for contingent liquidity as of September 30, 2019. As of September 30, 2019, the Company did not have any borrowings on this committed line of credit outstanding.
The Company has access to the Federal Reserve Bank's "discount window" to supplement its liquidity. The Company has $115.3 million of borrowing capacity at the Federal Reserve Bank as of September 30, 2019. As of September 30, 2019, the Company did not have any outstanding borrowings with the Federal Reserve Bank.
Additionally, the Banks have access to liquidity through repurchase agreements and brokered deposits.
In general, the Company seeks to maintain a high degree of liquidity and targets cash, cash equivalents and investment securities available-for-sale balances of between 0% and 10% of total assets. As of September 30, 2019, cash, cash equivalents and investment securities available-for-sale totaled $645.9 million, or 8.2% of total assets. This compares to $592.4 million, or 8.0% of total assets as of December 31, 2018.
While management believes that the Company has adequate liquidity to meet its commitments and to fund the Banks' lending and investment activities, the availabilities of these funding sources are subject to broad economic conditions and could be restricted in the future. Such restrictions would impact the Company's immediate liquidity and/or additional liquidity needs.
Off-Balance-Sheet Financial Instruments

The Company is party to off-balance-sheet financial instruments in the normal course of business to meet the financing needs of its customers and to reduce its own exposure to fluctuations in interest rates. These financial instruments include loan commitments, standby and commercial letters of credit and interest-rate swaps. According to GAAP, these financial instruments are not recorded in the financial statements until they are funded or related fees are incurred or received.
 
The contract amounts reflect the extent of the involvement the Company has in particular classes of these instruments. Such commitments involve, to varying degrees, elements of credit risk and interest-rate risk in excess of the amount recognized in the consolidated balance sheet. The Company’s exposure to credit loss in the event of non-performance by the counterparty is represented by the contractual amount of the instruments. The Company uses the same policies in making commitments and conditional obligations as it does for on-balance-sheet instruments.

92

 
Financial instruments with off-balance-sheet risk at the dates indicated follow:
 
At September 30, 2019
 
At December 31, 2018
 
(In Thousands)
Financial instruments whose contract amounts represent credit risk:
 
 
 
Commitments to originate loans and leases:
 
 
 
Commercial real estate
$
75,280

 
$
76,642

Commercial
77,395

 
75,713

Residential mortgage
63,229

 
16,363

Unadvanced portion of loans and leases
795,285

 
707,997

Unused lines of credit:
 
 
 
Home equity
515,589

 
487,476

Other consumer
35,923

 
50,404

Other commercial
393

 
347

Unused letters of credit:
 
 
 
Financial standby letters of credit
10,521

 
11,491

Performance standby letters of credit
3,696

 
3,075

Commercial and similar letters of credit
4,648

 
4,573

Loan level derivatives:
 
 
 
Receive fixed, pay variable
992,476

 
714,500

Pay fixed, receive variable
992,476

 
714,500

Risk participation-out agreements
177,155

 
100,531

Risk participation-in agreements
56,096

 
35,838

Foreign exchange contracts:
 
 
 
Buys foreign currency, sells U.S. currency
1,315

 
6,573

Sells foreign currency, buys U.S. currency
1,420

 
6,582



93

Capital Resources
As of September 30, 2019, the Company and the Banks are each under the primary regulation of, and must comply with, the capital requirements of the FRB. Under these rules, the Company and the Banks are each required to maintain a minimum common equity Tier 1 capital to risk-weighted assets ratio of 4.5%, a minimum total Tier 1 capital to risk-weighted assets ratio of 6.0%, a minimum total capital to risk-weighted assets ratio of 8% and a minimum leverage ratio of 4%. Additionally, the Company and the Bank are required to establish a capital conservation buffer of common equity Tier 1 capital in an amount above the minimum risk-based capital requirements for “adequately capitalized” institutions equal to 2.5% of total risk weighted assets, or face restrictions on the ability to pay dividends, pay discretionary bonuses, and to engage in share repurchases. As of September 30, 2019, the Company and the Banks exceeded all regulatory capital requirements, and the Banks were each considered “well-capitalized” under prompt corrective action regulations.

The following table presents actual and required capital amounts and capital ratios as of September 30, 2019 for the Company and the Banks.

 
Actual
 
Minimum Required for Capital Adequacy Purposes
 
Minimum Required for Fully Phased in Capital Adequacy Purposes plus Capital Conservation Buffer
 
Minimum Required  to be Considered “Well-Capitalized” Under Prompt Corrective Action Provisions
 
Amount
 
Ratio
 
Amount
 
Ratio
 
Amount
 
Ratio
 
Amount
 
Ratio
 
(Dollars in Thousands)
At September 30, 2019:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Brookline Bancorp, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common equity Tier 1 capital ratio (1)
$
766,645

 
11.26
%
 
$
306,386

 
4.50
%
 
$
476,600

 
7.00
%
 
N/A

 
N/A

Tier 1 leverage capital ratio (2)
776,196

 
10.24
%
 
303,202

 
4.00
%
 
303,202

 
4.00
%
 
N/A

 
N/A

Tier 1 risk-based capital ratio (3)
776,196

 
11.41
%
 
408,166

 
6.00
%
 
578,235

 
8.50
%
 
N/A

 
N/A

Total risk-based capital ratio (4)
911,179

 
13.39
%
 
544,394

 
8.00
%
 
714,517

 
10.50
%
 
N/A

 
N/A

Brookline Bank
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common equity Tier 1 capital ratio (1)
$
511,015

 
11.42
%
 
$
201,363

 
4.50
%
 
$
313,232

 
7.00
%
 
$
290,858

 
6.50
%
Tier 1 leverage capital ratio (2)
511,015

 
10.53
%
 
194,118

 
4.00
%
 
194,118

 
4.00
%
 
242,647

 
5.00
%
Tier 1 risk-based capital ratio (3)
511,015

 
11.42
%
 
268,484

 
6.00
%
 
380,353

 
8.50
%
 
357,979

 
8.00
%
Total risk-based capital ratio (4)
551,310

 
12.32
%
 
357,994

 
8.00
%
 
469,866

 
10.50
%
 
447,492

 
10.00
%
BankRI
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common equity Tier 1 capital ratio (1)
$
228,789

 
11.31
%
 
$
91,030

 
4.50
%
 
$
141,602

 
7.00
%
 
$
131,488

 
6.50
%
Tier 1 leverage capital ratio (2)
228,789

 
9.82
%
 
93,193

 
4.00
%
 
93,193

 
4.00
%
 
116,491

 
5.00
%
Tier 1 risk-based capital ratio (3)
228,789

 
11.31
%
 
121,373

 
6.00
%
 
171,946

 
8.50
%
 
161,831

 
8.00
%
Total risk-based capital ratio (4)
246,964

 
12.20
%
 
161,944

 
8.00
%
 
212,551

 
10.50
%
 
202,430

 
10.00
%
First Ipswich
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common equity Tier 1 capital ratio (1)
$
40,732

 
13.05
%
 
$
14,046

 
4.50
%
 
$
21,849

 
7.00
%
 
$
20,288

 
6.50
%
Tier 1 leverage capital ratio (2)
40,732

 
10.66
%
 
15,284

 
4.00
%
 
15,284

 
4.00
%
 
19,105

 
5.00
%
Tier 1 risk-based capital ratio (3)
40,732

 
13.05
%
 
18,727

 
6.00
%
 
26,530

 
8.50
%
 
24,970

 
8.00
%
Total risk-based capital ratio (4)
43,243

 
13.86
%
 
24,960

 
8.00
%
 
32,760

 
10.50
%
 
31,200

 
10.00
%
_______________________________________________________________________________
(1) Common equity Tier 1 capital ratio is calculated by dividing common equity Tier 1 capital by risk-weighted assets.

(2) Tier 1 leverage capital ratio is calculated by dividing Tier 1 capital by average assets.

(3) Tier 1 risk-based capital ratio is calculated by dividing Tier 1 capital by risk-weighted assets.

(4) Total risk-based capital ratio is calculated by dividing total capital by risk-weighted assets.




94


The following table presents actual and required capital amounts and capital ratios as of December 31, 2018 for the Company and the Banks under the regulatory capital rules then in effect.
 
Actual
 
Minimum Required for Capital Adequacy Purposes
 
Minimum Required for Fully Phased in Capital Adequacy Purposes plus Capital Conservation Buffer
 
Minimum Required To
Be Considered
 “Well-Capitalized” Under Prompt Corrective Action Provisions
 
Amount
 
Ratio
 
Amount
 
Ratio
 
Amount
 
Ratio
 
Amount
 
Ratio
 
(Dollars in Thousands)
At December 31, 2018:
 

 
 

 
 

 
 
 
 
 
 

 
 

 
 

Brookline Bancorp, Inc.
 

 
 

 
 

 
 
 
 
 
 

 
 

 
 

Common equity Tier 1 capital ratio (1)
$
745,103

 
11.94
%
 
$
280,818

 
4.50
%
 
$
436,828

 
7.00
%
 
N/A

 
N/A

Tier 1 leverage capital ratio (2)
765,089

 
10.58
%
 
289,259

 
4.00
%
 
289,259

 
4.00
%
 
N/A

 
N/A

Tier 1 risk-based capital ratio (3)
765,089

 
12.26
%
 
374,432

 
6.00
%
 
530,445

 
8.50
%
 
N/A

 
N/A

Total risk-based capital ratio (4)
899,563

 
14.42
%
 
499,064

 
8.00
%
 
655,022

 
10.50
%
 
N/A

 
N/A

Brookline Bank
 

 
 

 
 

 
 

 
 
 
 
 
 

 
 

Common equity Tier 1 capital ratio (1)
$
495,798

 
12.06
%
 
$
184,999

 
4.50
%
 
$
287,777

 
7.00
%
 
$
267,221

 
6.50
%
Tier 1 leverage capital ratio (2)
506,277

 
11.02
%
 
183,767

 
4.00
%
 
183,767

 
4.00
%
 
229,708

 
5.00
%
Tier 1 risk-based capital ratio (3)
506,277

 
12.32
%
 
246,563

 
6.00
%
 
349,298

 
8.50
%
 
328,751

 
8.00
%
Total risk-based capital ratio (4)
545,533

 
13.27
%
 
328,882

 
8.00
%
 
431,658

 
10.50
%
 
411,102

 
10.00
%
BankRI
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common equity Tier 1 capital ratio (1)
$
209,670

 
11.37
%
 
$
82,983

 
4.50
%
 
$
129,084

 
7.00
%
 
$
119,864

 
6.50
%
Tier 1 leverage capital ratio (2)
209,670

 
9.35
%
 
89,698

 
4.00
%
 
89,698

 
4.00
%
 
112,123

 
5.00
%
Tier 1 risk-based capital ratio (3)
209,670

 
11.37
%
 
110,644

 
6.00
%
 
156,745

 
8.50
%
 
147,525

 
8.00
%
Total risk-based capital ratio (4)
227,674

 
12.35
%
 
147,481

 
8.00
%
 
193,569

 
10.50
%
 
184,351

 
10.00
%
First Ipswich
 

 
 

 
 

 
 

 
 
 
 
 
 

 
 

Common equity Tier 1 capital ratio (1)
$
39,655

 
13.91
%
 
$
12,829

 
4.50
%
 
$
19,956

 
7.00
%
 
$
18,530

 
6.50
%
Tier 1 leverage capital ratio (2)
39,655

 
9.59
%
 
16,540

 
4.00
%
 
16,540

 
4.00
%
 
20,675

 
5.00
%
Tier 1 risk-based capital ratio (3)
39,655

 
13.91
%
 
17,105

 
6.00
%
 
24,232

 
8.50
%
 
22,807

 
8.00
%
Total risk-based capital ratio (4)
42,944

 
15.06
%
 
22,812

 
8.00
%
 
29,941

 
10.50
%
 
28,515

 
10.00
%
_______________________________________________________________________________
(1) Common equity Tier 1 capital ratio is calculated by dividing common equity Tier 1 capital by risk-weighted assets.

(2) Tier 1 leverage capital ratio is calculated by dividing Tier 1 capital by average assets.

(3) Tier 1 risk-based capital ratio is calculated by dividing Tier 1 capital by risk-weighted assets.

(4) Total risk-based capital ratio is calculated by dividing total capital by risk-weighted assets.



95


Item 3. Quantitative and Qualitative Disclosures about Market Risk
Market Risk
Market risk is the risk that the market value or estimated fair value of the Company's assets, liabilities, and derivative financial instruments will decline as a result of changes in interest rates or financial market volatility, or that the Company's net income will be significantly reduced by interest-rate changes.
Interest-Rate Risk
The principal market risk facing the Company is interest-rate risk, which can occur in a variety of forms, including repricing risk, yield-curve risk, basis risk, and prepayment risk. Repricing risk occurs when the change in the average yield of either interest-earning assets or interest-bearing liabilities is more sensitive than the other to changes in market interest rates. Such a change in sensitivity could reflect a number of possible mismatches in the repricing opportunities of the Company's assets and liabilities. Yield-curve risk reflects the possibility that changes in the shape of the yield curve could have different effects on the Company's assets and liabilities. Basis risk occurs when different parts of the balance sheet are subject to varying base rates reflecting the possibility that the spread from those base rates will deviate. Prepayment risk is associated with financial instruments with an option to prepay before the stated maturity, often a disadvantage to person selling the option; this risk is most often associated with the prepayment of loans, callable investments, and callable borrowings.
Asset/Liability Management
Market risk and interest-rate risk management is governed by the Company's Asset/Liability Committee ("ALCO"). The ALCO establishes exposure limits that define the Company's tolerance for interest-rate risk. The ALCO and the Company's Treasury Group measure and manage the composition of the balance sheet over a range of possible changes in interest rates while remaining responsive to market demand for loan and deposit products. The ALCO monitors current exposures versus limits and reports those results to the Board of Directors. The policy limits and guidelines serve as benchmarks for measuring interest-rate risk and for providing a framework for evaluation and interest-rate risk-management decision-making. The Company measures its interest-rate risk by using an asset/liability simulation model. The model considers several factors to determine the Company's potential exposure to interest-rate risk, including measurement of repricing gaps, duration, convexity, value-at-risk, market value of portfolio equity under assumed changes in the level of interest rates, the shape of yield curves, and general market volatility.
Management controls the Company's interest-rate exposure using several strategies, which include adjusting the maturities of securities in the Company's investment portfolio, limiting or expanding the terms of loans originated, limiting fixed-rate deposits with terms of more than five years, and adjusting maturities of FHLBB advances. The Company limits this risk by restricting the types of MBSs it invests in to those with limited average life changes under certain interest-rate-shock scenarios, or securities with embedded prepayment penalties. The Company also places limits on holdings of fixed-rate mortgage loans with maturities greater than five years. The Company may also use derivative instruments, principally interest-rate swaps, to manage its interest-rate risk; however, the Company had no derivative fair value hedges or derivative cash flows hedges as of September 30, 2019 or December 31, 2018. See Note 8, “Derivatives and Hedging Activities,” to the unaudited consolidated financial statements.
Measuring Interest-Rate Risk
As noted above, interest-rate risk can be measured by analyzing the extent to which the repricing of assets and liabilities are mismatched to create an interest-rate sensitivity gap. An asset or liability is said to be interest-rate sensitive within a specific period if it will mature or reprice within that period. The interest-rate sensitivity gap is defined as the difference between the amount of interest-earning assets maturing or repricing within a specific time period and the amount of interest-bearing liabilities maturing or repricing within that same time period. A gap is considered positive when the amount of interest-rate-sensitive assets exceeds the amount of interest-rate-sensitive liabilities. A gap is considered negative when the amount of interest-rate-sensitive liabilities exceeds the amount of interest-rate-sensitive assets. During a period of falling interest rates, therefore, a positive gap would tend to adversely affect net interest income. Conversely, during a period of rising interest rates, a positive gap position would tend to result in an increase in net interest income.
The Company's interest-rate risk position is measured using both income simulation and interest-rate sensitivity "gap" analysis. Income simulation is the primary tool for measuring the interest-rate risk inherent in the Company's balance sheet at a given point in time by showing the effect on net interest income, over a twelve-month period, of a variety of interest-rate shocks. These simulations take into account repricing, maturity, and prepayment characteristics of individual products. The ALCO reviews simulation results to determine whether exposure resulting from changes in market interest rates remains within

96

established tolerance levels over a twelve-month horizon, and develops appropriate strategies to manage this exposure. The Company's interest-rate risk analysis remains modestly asset-sensitive as of September 30, 2019.
The assumptions used in the Company’s interest-rate sensitivity simulation discussed above are inherently uncertain and, as a result, the simulations cannot precisely measure net interest income or precisely predict the impact of changes in interest rates.
As of September 30, 2019, net interest income simulation indicated that the Company's exposure to changing interest rates was within tolerance. The ALCO reviews the methodology utilized for calculating interest-rate risk exposure and may periodically adopt modifications to this methodology. The following table presents the estimated impact of interest-rate changes on the Company's estimated net interest income over the twelve-month periods indicated:
 
Estimated Exposure to Net Interest Income
over Twelve-Month Horizon Beginning
 
September 30, 2019
 
December 31, 2018
Change in Interest Rate Levels
Dollar
Change
 
Percent
Change
 
Dollar
Change
 
Percent
Change
 
(Dollars in Thousands)
Up 300 basis points shock
$
30,191

 
11.9
 %
 
$
20,134

 
8.0
 %
Up 200 basis points ramp
12,312

 
4.9
 %
 
9,353

 
3.7
 %
Up 100 basis points ramp
6,178

 
2.4
 %
 
4,982

 
2.0
 %
Down 100 basis points ramp
(10,891
)
 
(4.3
)%
 
(9,894
)
 
(3.9
)%

The estimated impact of a 300 basis point increase in market interest rates on the Company's estimated net interest income over a twelve-month horizon was a positive 11.9% as of September 30, 2019, compared to a positive 8.0% as of December 31, 2018. The slight increase in asset sensitivity was due to a change in the funding mix, as core deposits replaced wholesale borrowings.

The Company also uses interest-rate sensitivity “gap” analysis to provide a more general overview of its interest-rate risk profile. The interest-rate sensitivity gap is defined as the difference between interest-earning assets and interest-bearing
liabilities maturing or repricing within a given time period. At September 30, 2019, the Company’s one-year cumulative gap was a negative $4.7 million, or 0.06% of total interest-earning assets, compared with a positive $12.4 million, or 0.18% of total interest-earning assets, at December 31, 2018.
 
The assumptions used in the Company's interest-rate sensitivity simulation discussed above are inherently uncertain and, as a result, the simulations cannot precisely measure net interest income or precisely predict the impact of changes in interest rates. For additional discussion on interest-rate risk see Item 7A, “Quantitative and Qualitative Disclosures about Market Risk” of the Company’s 2018 Annual Report on Form 10-K.

Economic Value of Equity ("EVE") at Risk Simulation is conducted in tandem with net interest income simulations to ascertain a longer term view of the Company’s interest-rate risk position by capturing longer-term repricing risk and options risk embedded in the balance sheet. It measures the sensitivity of the economic value of equity to changes in interest rates. The EVE at Risk Simulation values only the current balance sheet and does not incorporate growth assumptions. As with the net interest income simulation, this simulation captures product characteristics such as loan resets, repricing terms, maturity dates, and rate caps and floors. Key assumptions include loan prepayment speeds, deposit pricing elasticity, and non-maturity deposit attrition rates. These assumptions can have significant impacts on valuation results as the assumptions remain in effect for the entire life of each asset and liability. The Company conducts non-maturity deposit behavior studies on a periodic basis to support deposit assumptions used in the valuation process. All key assumptions are subject to a periodic review.

EVE at Risk is calculated by estimating the net present value of all future cash flows from existing assets and liabilities using current interest rates as well as parallel shocks to the current interest-rate environment. The following table sets forth the estimated percentage change in the Company’s EVE at Risk, assuming various shifts in interest rates. Given the interest rate environment as of September 30, 2019, simulations for interest rate declines of more than 100 basis points were not deemed to be meaningful.

97

 
 
Estimated Percent Change in Economic Value of Equity
Parallel Shock in Interest Rate Levels
 
At September 30, 2019

At December 31, 2018
Up 300 basis points
 
8.8
 %
 
2.5
 %
Up 200 basis points
 
7.2
 %
 
2.5
 %
Up 100 basis points
 
4.3
 %
 
2.1
 %
Down 100 basis points
 
(8.4
)%
 
(7.0
)%

The Company's EVE sensitivity increased from December 31, 2018 to September 30, 2019 due to the shortened duration of the loan and investment portfolios as well as the lengthening of the deposit base.

Item 4. Controls and Procedures
 
Controls and Procedures
 
Under the supervision and with the participation of the Company’s Management, including the Company’s Chief Executive Officer (Principal Executive Officer) and Chief Financial Officer (Principal Financial Officer), the Company has evaluated the effectiveness of its disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this report. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer considered that, as of the end of the period covered by this report, the Company’s disclosure controls and procedures were effective to ensure that information required to be disclosed in the reports that the Company files or submits under the Exchange Act is (i) recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms and (ii) accumulated and communicated to the Company’s Management, including its Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.
 
There has been no change in the Company's internal control over financial reporting identified in connection with the quarterly evaluation that occurred during the Company's last fiscal quarter that has materially and detrimentally affected, or is reasonably likely to materially and detrimentally affect, the Company's internal controls over financial reporting.
 
The Company’s Management is responsible for establishing and maintaining adequate internal control over financial reporting as such term is defined in Exchange Act Rule 13a -15(f). The Company’s internal control system was designed to provide reasonable assurance to its Management and the Board of Directors regarding the preparation and fair presentation of published financial statements. All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. The Company’s Management assessed the effectiveness of its internal control over financial reporting as of the end of the period covered by this report.
 
Management’s Report on Internal Control Over Financial Reporting as of December 31, 2018 and the related Report of Independent Registered Public Accounting Firm thereon appear on pages F-1 and F-2 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.

98

PART II — OTHER INFORMATION
Item 1. Legal Proceedings
 
There are no material pending legal proceedings other than those that arise in the normal course of business. In the opinion of Management, after consulting with legal counsel, the consolidated financial position and results of operations of the Company are not expected to be affected materially by the outcome of such proceedings. 

Item 1A.    Risk Factors

There have been no material changes to the risk factors disclosed in Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

a)        Not applicable.
 
b)        Not applicable.
 
c)         None.

Item 3. Defaults Upon Senior Securities

a)        None.
 
b)        None.

Item 4.    Mine Safety Disclosures

Not applicable.

Item 5.    Other Information

None.

Item 6. Exhibits
 
Exhibits
Exhibit 31.1*
 
Certification of Chief Executive Officer
 
 
 
Exhibit 31.2*
 
Certification of Chief Financial Officer
 
 
 
Exhibit 32.1**
 
Section 1350 Certification of Chief Executive Officer
 
 
 
Exhibit 32.2**
 
Section 1350 Certification of Chief Financial Officer
 
 
 
101.INS
 
XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH
 
XBRL Taxonomy Extension Schema Document
101.CAL
 
XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF
 
XBRL Taxonomy Extension Definition Linkbase Document
101.LAB
 
XBRL Taxonomy Extension Label Linkbase Document
101.PRE
 
XBRL Taxonomy Extension Presentation Linkbase Document
_______________________________________________________________________________
* Filed herewith
** Furnished herewith

99

SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 
BROOKLINE BANCORP, INC.
 
 
 
 
 
 
 
 
Date: November 6, 2019
By:
/s/ Paul A. Perrault
 
 
Paul A. Perrault
 
 
 
President and Chief Executive Officer
 
 
 
(Principal Executive Officer)
 
 
 
 
 
Date: November 6, 2019
By:
/s/ Carl M. Carlson
 
 
Carl M. Carlson
 
 
 
Chief Financial Officer
 
 
 
(Principal Financial Officer)
 




100

What is the market capitalization of a company?

The market capitalization sometimes referred as Marketcap, is the value of a publicly listed company.
In most cases it can be easily calculated by multiplying the share price with the amount of outstanding shares.

DISCLAIMER

CompaniesMarketCap is not associated in any way with CoinMarketCap.com
Stock prices are delayed, the delay can range from a few minutes to several hours.
Company logos are from the CompaniesLogo.com logo database and belong to their respective copyright holders. Companies Marketcap displays them for editorial purposes only.

Contact

For inquiries or if you want to report a problem write to hello@8marketcap.com

Links

- Privacy policy

- Terms and conditions

© 2025 CompaniesMarketcap.com