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Regulatory Capital Requirements
 12 Months Ended
Dec. 31, 2019
Banking and Thrift [Abstract]  
Regulatory Capital Requirements Regulatory Capital Requirements
The Company's primary source of cash is dividends from the Banks and Brookline Securities Corp. The Banks are subject to certain restrictions on the amount of dividends that they may declare without prior regulatory approval. In addition, the dividends declared cannot be in excess of the amount which would cause the Banks to fall below the minimum required for capital adequacy purposes.
The Company is a bank holding company within the meaning of the Bank Holding Company Act of 1956, as amended (the "BHCA") and as such, must comply with the capital requirements of the FRB at the consolidated level. As member banks of the FRB, Brookline Bank and BankRI are also required to comply with the regulatory capital requirement of the FRB.
The FRB has promulgated regulations imposing minimum capital requirements for bank holding companies and state member banks as well as prompt corrective action regulations for state member banks that implement the system of prompt corrective action established by Section 38 of the Federal Deposit Insurance Act, as amended (the "FDIA"). Under the prompt corrective action regulations in effect as of December 31, 2019, a bank is "well-capitalized" if it has: (1) a total risk-based capital ratio of 10.0% or greater; (2) a Tier 1 risk-based capital ratio of 8.0% or greater; (3) a common equity Tier 1 capital ratio of 6.5% or greater; (4) a Tier 1 leverage ratio of 5.0% or greater; and (5) is not subject to any written agreement, order, capital directive or prompt corrective action directive to meet and maintain a specific capital level for any capital measure.
Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company's financial statements. Under capital adequacy guidelines, the Company and each of the Banks must meet specific capital guidelines that involve quantitative measures of the Company's and the Banks' assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. In addition, the prompt corrective action rules applicable to state member banks establish a framework of supervisory actions for state member banks that are not at least adequately capitalized. The Company's and the Banks' capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Prompt corrective action provisions are not applicable to bank holding companies. Bank holding companies are not subject to prompt corrective action requirements. However, a bank holding company is considered "well capitalized" for purpose of the FRB's Regulation Y (which can affect eligibility for expedited application processes to make acquisitions and
engage in new activities) if the bank holding company maintains on a consolidated basis a total risk-based capital ratio of 10.0% or greater and a Tier 1 risk-based capital ratio of 6.0% or greater and is not subject to any written agreement under capital directive or prompt correction action directive issued by the FRB to meet and maintain a specific capital level for any capital measure.
Beginning January 1, 2019, the Company and the Banks will have to maintain a capital conservation buffer composed of Common Equity Tier 1 capital equal to 2.5% of risk-weighted assets above the amounts required to be adequately capitalized in order to avoid limitations on capital distributions, including dividend payments and certain discretionary bonus payments to executive officers. Capital ratios required to be considered well-capitalized exceed the ratios required under the capital conservation buffer requirement at December 31, 2019.
As of December 31, 2019, the Company and the Banks are each under the primary regulation of, and must comply with, the capital requirements of the FRB. As of December 31, 2019, the Company and the Banks exceeded all regulatory capital requirements and were considered “well-capitalized” under prompt corrective action regulations, as amended to reflect the changes under Basel III Capital Rules. The following table presents actual and required capital ratios as of December 31, 2019 for the Company and the Banks under the Basel III Capital Rules based on the phase-in provision of the Basel III Capital Rules and the minimum required capital levels as of January 1, 2019 when the Basel III Capital Rules have been fully phased in.
 
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, 2019:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Brookline Bancorp, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common equity Tier 1 capital ratio (1)
$
780,962

 
11.44
%
 
$
307,197

 
4.50
%
 
$
477,861


7.00
%
 
N/A

 
N/A

Tier 1 leverage capital ratio (2)
790,527

 
10.28
%
 
307,598

 
4.00
%
 
307,598


4.00
%
 
N/A

 
N/A

Tier 1 risk-based capital ratio (3)
790,527

 
11.58
%
 
409,599

 
6.00
%
 
580,266


8.50
%
 
N/A

 
N/A

Total risk-based capital ratio (4)
927,515

 
13.59
%
 
545,999

 
8.00
%
 
716,623


10.50
%
 
N/A

 
N/A

Brookline Bank
 
 
 
 
 
 
 
 



 
 
 
 
Common equity Tier 1 capital ratio (1)
$
513,311

 
11.44
%
 
$
201,914

 
4.50
%
 
$
314,089


7.00
%
 
$
291,654

 
6.50
%
Tier 1 leverage capital ratio (2)
513,311

 
10.42
%
 
197,048

 
4.00
%
 
197,048


4.00
%
 
246,310

 
5.00
%
Tier 1 risk-based capital ratio (3)
513,311

 
11.44
%
 
269,219

 
6.00
%
 
381,394


8.50
%
 
358,959

 
8.00
%
Total risk-based capital ratio (4)
555,474

 
12.38
%
 
358,949

 
8.00
%
 
471,121


10.50
%
 
448,687

 
10.00
%
BankRI
 
 
 
 
 
 
 
 



 
 
 
 
Common equity Tier 1 capital ratio (1)
$
240,362

 
11.75
%
 
$
92,054

 
4.50
%
 
$
143,194


7.00
%
 
$
132,966

 
6.50
%
Tier 1 leverage capital ratio (2)
240,362

 
9.97
%
 
96,434

 
4.00
%
 
96,434


4.00
%
 
120,543

 
5.00
%
Tier 1 risk-based capital ratio (3)
240,362

 
11.75
%
 
122,738

 
6.00
%
 
173,879


8.50
%
 
163,651

 
8.00
%
Total risk-based capital ratio (4)
258,719

 
12.65
%
 
163,617

 
8.00
%
 
214,747


10.50
%
 
204,521

 
10.00
%
First Ipswich
 
 
 
 
 
 
 
 



 
 
 
 
Common equity Tier 1 capital ratio (1)
$
41,320

 
13.45
%
 
$
13,825

 
4.50
%
 
$
21,505


7.00
%
 
$
19,969

 
6.50
%
Tier 1 leverage capital ratio (2)
41,320

 
8.80
%
 
18,782

 
4.00
%
 
18,782


4.00
%
 
23,477

 
5.00
%
Tier 1 risk-based capital ratio (3)
41,320

 
13.45
%
 
18,433

 
6.00
%
 
26,113


8.50
%
 
24,577

 
8.00
%
Total risk-based capital ratio (4)
43,762

 
14.24
%
 
24,585

 
8.00
%
 
32,268


10.50
%
 
30,732

 
10.00
%
_______________________________________________________________________________
(1) Common equity Tier 1 capital ratio is calculated by dividing common equity Tier 1 capital by risk-weighted assets. The ratio was established as part of the implementation of Basel III, effective January 1, 2015.

(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.

The following table presents actual and required 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. The ratio was established as part of the implementation of Basel III, effective January 1, 2015.

(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.