Brookline Bancorp Announces Second Quarter Results

Net Income of $11.9 million, EPS of $0.17

Jul 22, 2015, 17:00 ET from Brookline Bancorp, Inc.

BOSTON, July 22, 2015 /PRNewswire/ -- Brookline Bancorp, Inc. (NASDAQ: BRKL) (the "Company") today announced net income of $11.9 million, or $0.17 per basic and diluted share, for the second quarter of 2015, compared to $11.7 million, or $0.17 per basic and diluted share, for the first quarter of 2015.

Paul Perrault, President and Chief Executive Officer of the Company, stated: "We have delivered another solid quarter for our shareholders while improving our efficiency ratio, return on assets and stockholder's equity. Although the interest rate environment continues to be volatile, it is because of our strong fundamentals that we experienced strong growth in loans. I am grateful and proud of our employees who work together to live the Brookline Bancorp culture of providing excellent customer service and contributing to the growth of our Company."

BALANCE SHEET

Total assets of $5.8 billion at June 30, 2015 increased $27.8 million from March 31, 2015, and decreased $18.0 million from December 31, 2014. The increase in total assets of 1.9 percent on an annualized basis during the second quarter of 2015 was driven by increases in loan and leases, which were offset by decreases in cash, cash equivalents and investment securities. The excess liquidity generated by the sale of indirect automobile loans in March was deployed during the second quarter. At June 30, 2015, total loans and leases were $4.7 billion, representing an increase of $95.0 million from March 31, 2015, and a decrease of $93.0 million from December 31, 2014. During the second quarter of 2015, total loans and leases grew 8.2 percent on an annualized basis. Strong loan growth continued in the total commercial real estate and commercial loan and lease portfolios, which increased $67.3 million during the second quarter of 2015, or 7.2 percent on an annualized basis.

Cash, cash equivalents, and investment securities at June 30, 2015 decreased $79.9 million to $682.9 million, or 11.8 percent of total assets, as compared to $762.7 million, or 13.3 percent of total assets at March 31, 2015, and increased $68.9 million from $614.0 million, or 10.6 percent of total assets at December 31, 2014. The decrease during the second quarter of 2015 was primarily driven by the funding of loans.

Total deposits of $4.1 billion at June 30, 2015 increased $14.6 million from March 31, 2015 and increased $171.3 million from December 31, 2014. The increase during the second quarter of 2015 was primarily driven by an increase of $53.4 million in demand checking offset by a $38.8 million decrease in savings accounts. Core deposits, which consist of demand checking, NOW, savings, and money market accounts, increased at a 3.0 percent annualized rate in the second quarter of 2015. The core deposit ratio increased slightly to 74.7 percent at June 30, 2015 from 74.4 percent at March 31, 2015 and decreased from 76.1 percent at December 31, 2014. The average cost of deposits decreased to 0.51 percent at June 30, 2015 from 0.52 percent at March 31, 2015.

Total borrowings at June 30, 2015 were $937.6 million, an increase of $12.7 million as compared to March 31, 2015. Total borrowings decreased $188.8 million as compared to December 31, 2014 as proceeds from the sale of indirect automobile loans were used to pay down short term borrowings.

The ratio of stockholders' equity to total assets was 11.30 percent at June 30, 2015, as compared to 11.32 percent at March 31, 2015 and 11.06 percent at December 31, 2014. The ratio of tangible stockholders' equity to tangible assets was 8.94 percent at June 30, 2015, as compared to 8.93 percent at March 31, 2015 and 8.68 percent at December 31, 2014.

NET INTEREST INCOME

Net interest income decreased $1.4 million to $47.2 million during the second quarter of 2015 from the previous quarter. The net interest margin decreased 8 basis points to 3.49 percent for the three months ended June 30, 2015. The decrease in net interest income is largely a result of the sale of indirect automobile loans at the end of the first quarter offset by loan growth in the second quarter.

PROVISION FOR LOAN AND LEASE LOSSES

The Company recorded a provision for loan and lease losses of $1.8 million for the quarter ended June 30, 2015, compared to $2.3 million during the first quarter of 2015. The decrease of $0.5 million quarter over quarter is due to a $1.6 million specific reserve established during the first quarter, partially offset by additional reserves required for loan growth in the second quarter.

Net charge-offs decreased approximately $0.4 million to $0.5 million for the second quarter of 2015 from $0.9 million for the first quarter of 2015. The ratio of net charge-offs to average loans on an annualized basis decreased to 0.04 percent for the second quarter of 2015 from 0.07 percent for the first quarter of 2015.

The allowance for loan and lease losses represented 1.19 percent of total loans and leases at June 30, 2015 and March 31, 2015, compared to 1.11 percent at December 31, 2014. The allowance for loan and lease losses related to originated loans and leases as a percentage of originated loans and leases was 1.27 percent at June 30, 2015, compared to 1.28 percent at March 31, 2015 and 1.20 at December 31, 2014.

NON-INTEREST INCOME

Non-interest income for the quarter ended June 30, 2015 increased $0.4 million to $4.9 million from the previous quarter. Loan level derivative income increased $0.9 million, offset by the decrease of $0.6 million from gain on sale of loans and leases held-for-sale.

NON-INTEREST EXPENSE

Non-interest expense for the quarter ended June 30, 2015 decreased approximately $0.9 million to $30.5 million from $31.3 million for the previous quarter. Compensation and employee benefits decreased $0.4 million primarily due to a decrease in payroll taxes and unemployment insurance due to the seasonal nature of the expenses which decrease once threshold limits are reached. Equipment and data processing expense decreased $0.3 million due to the decrease of core processing system expenses resulting from the sale of the indirect automobile loan portfolio.

RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

The return on average assets increased during the second quarter of 2015 to 0.82 percent at June 30, 2015 from 0.80 percent for the first quarter of 2015. The return on average tangible assets increased to 0.85 percent for the second quarter of 2015 from 0.82 percent for the first quarter of 2015. 

The return on average stockholders' equity increased during the second quarter of 2015 to 7.24 percent from 7.22 percent for the first quarter of 2015. The return on average tangible stockholders' equity decreased to 9.40 percent for the second quarter of 2015 from 9.41 percent for the first quarter of 2015.

ASSET QUALITY

Nonperforming loans and leases increased $0.7 million during the second quarter of 2015 to $23.5 million at June 30, 2015 from the previous quarter. The ratio of nonperforming loans and leases to total loans and leases increased slightly to 0.50 percent at June 30, 2015 from the previous quarter. Nonperforming assets also increased $1.1 million during the second quarter of 2015 to $25.9 million, or 0.45 percent of total assets, at June 30, 2015.

DIVIDEND DECLARED

The Company's Board of Directors approved a dividend of $0.09 per share. The dividend will be paid on August 21, 2015 to shareholders of record on August 7, 2015.

CONFERENCE CALL

The Company will conduct a conference call/webcast at 1:30 PM Eastern Standard Time on Thursday, July 23, 2015 to discuss the results for the quarter, business highlights and outlook. The call can be accessed by dialing 877-504-4120 (United States) or 412-902-6650 (internationally). A recorded playback of the call will be available for one week following the call at 877-344-7529 (United States) or 412-317-0088 (internationally). The passcode for the playback is 10068567. The call will be available live and in a recorded version on the Company's website under "Investor Relations" at www.brooklinebancorp.com.

ABOUT BROOKLINE BANCORP, INC.

Brookline Bancorp, Inc., a bank holding company with approximately $5.8 billion in assets and branch locations in Massachusetts and Rhode Island, is headquartered in Boston, Massachusetts and operates as the holding company for Brookline Bank, Bank Rhode Island, and First Ipswich Bank. The Company provides commercial and retail banking services and cash management and investment services to customers throughout Central New England. More information about Brookline Bancorp, Inc. and its banks can be found at the following websites: www.brooklinebank.com, www.bankri.com, and www.firstipswich.com.

FORWARD-LOOKING STATEMENTS

Certain statements contained in this press release that are not historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties. The Company's actual results could differ materially from those projected in the forward-looking statements as a result of, among others, the risks outlined in the Company's Annual Report on Form 10-K, as updated by its Quarterly Reports on Form 10-Q and other filings submitted to the Securities and Exchange Commission ("SEC"). The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.

BASIS OF PRESENTATION

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

NON-GAAP FINANCIAL MEASURES

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

Contact:       

Carl M. Carlson

Brookline Bancorp, Inc.

Chief Financial Officer and Treasurer

(617) 425-5331

ccarlson@brkl.com

 

BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Selected Financial Highlights (Unaudited)

At and for the Three Months Ended

June 30,

2015

March 31,

2015

December 31,

2014

September 30,

2014

June 30,

2014

(Dollars In Thousands Except Share Data)

Earnings Data:

 Net interest income

$        47,172

$           48,528

$                 47,576

$                   47,324

$        46,434

 Provision for credit losses

1,913

2,263

1,724

2,034

2,276

 Non-interest income*

4,867

4,470

4,541

6,189

3,822

 Non-interest expense

30,452

31,326

32,455

31,914

31,215

 Income before provision for income taxes*

19,674

19,409

17,938

19,565

16,765

 Net income attributable to Brookline Bancorp, Inc.*

11,865

11,703

10,875

11,740

10,131

Performance Ratios:

 Net interest margin (1)

3.49 %

3.57 %

3.49 %

3.53 %

3.63 %

 Interest-rate spread (1)

3.32 %

3.36 %

3.37 %

3.43 %

3.47 %

 Return on average assets*

0.82 %

0.80 %

0.76 %

0.83 %

0.74 %

 Return on average tangible assets (non-GAAP)*

0.85 %

0.82 %

0.78 %

0.85 %

0.76 %

 Return on average stockholders' equity*

7.24 %

7.22 %

6.79 %

7.41 %

6.46 %

 Return on average tangible stockholders' equity (non-GAAP)*

9.40 %

9.41 %

8.90 %

9.77 %

8.56 %

 Efficiency ratio*

58.52 %

59.11 %

62.27 %

59.64 %

62.11 %

Per Common Share Data:

 Net income — Basic*

$            0.17

$               0.17

$                     0.16

$                       0.17

$            0.15

 Net income — Diluted*

0.17

0.17

0.16

0.17

0.14

 Cash dividends declared

0.090

0.085

0.085

0.085

0.085

 Book value per share (end of period)*

9.33

9.30

9.16

9.05

8.99

 Tangible book value per share (end of period) (non-GAAP)*

7.19

7.15

7.00

6.87

6.80

 Stock price (end of period)

11.29

10.05

10.03

8.55

9.37

Balance Sheet:

 Total assets*

$   5,782,934

$      5,755,146

$            5,800,948

$              5,718,944

$   5,588,306

 Total loans and leases

4,729,581

4,634,594

4,822,607

4,736,028

4,603,913

 Total deposits

4,129,408

4,114,795

3,958,106

3,889,204

3,861,147

 Brookline Bancorp, Inc. stockholders' equity*

653,516

651,319

641,818

633,379

628,483

Asset Quality:

 Nonperforming assets

$        25,874

$           24,757

$                 15,170

$                   19,785

$        18,407

 Nonperforming assets as a percentage of total assets*

0.45 %

0.43 %

0.26 %

0.35 %

0.33 %

 Allowance for loan and lease losses

$        56,398

$           55,106

$                 53,659

$                   52,822

$        51,686

 Allowance for loan and lease losses as a percentage of total loans and   leases

1.19 %

1.19 %

1.11 %

1.12 %

1.12 %

 Net loan and lease charge-offs

$             501

$                854

$                      874

$                        793

$             720

 Net loan and lease charge-offs as a percentage of average loans and leases  (annualized)

0.04 %

0.07 %

0.07 %

0.07 %

0.06 %

Capital Ratios:

 Stockholders' equity to total assets*

11.30 %

11.32 %

11.06 %

11.08 %

11.25 %

 Tangible stockholders' equity to tangible assets (non-GAAP)*

8.94 %

8.93 %

8.68 %

8.64 %

8.75 %

(1) Calculated on a fully tax-equivalent basis.

(*) Previously reported amounts prior to January 1, 2015 have been restated to reflect a retrospective change in accounting principle for investments in qualified affordable housing projects, in accordance with ASU

2014-01.

 

 

BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Consolidated Balance Sheets (Unaudited)

June 30,

2015

March 31,

2015

December 31,

2014

September 30,

2014

June 30,

2014

ASSETS

(In Thousands Except Share Data)

Cash and due from banks

$                43,363

$                     35,118

$                             36,893

$                                37,237

$                58,962

Short-term investments

48,513

162,003

25,830

50,901

20,771

  Total cash and cash equivalents

91,876

197,121

62,723

88,138

79,733

Investment securities available-for-sale

530,476

565,115

550,761

527,516

528,586

Investment securities held-to-maturity

60,511

500

500

500

500

  Total investment securities

590,987

565,615

551,261

528,016

529,086

Loans and leases held-for-sale

12,482

787

1,537

464

13,890

Loans and leases:

Commercial real estate loans:

  Commercial real estate mortgage

1,758,281

1,714,140

1,680,082

1,610,592

1,545,483

  Multi-family mortgage

627,571

652,500

639,706

630,852

631,371

  Construction

127,506

134,247

148,013

161,279

137,731

   Total commercial real estate loans

2,513,358

2,500,887

2,467,801

2,402,723

2,314,585

Commercial loans and leases:

  Commercial

578,548

560,344

514,077

495,712

478,856

  Equipment financing

648,447

614,301

601,424

576,541

552,489

  Condominium association

55,185

52,707

51,593

49,600

45,608

   Total commercial loans and leases

1,282,180

1,227,352

1,167,094

1,121,853

1,076,953

Indirect automobile loans

19,377

23,335

316,987

353,263

376,314

Consumer loans:

  Residential mortgage

603,073

578,994

571,920

570,128

550,814

  Home equity

299,396

292,198

287,058

274,762

270,203

  Other consumer

12,197

11,828

11,747

13,299

15,044

   Total consumer loans

914,666

883,020

870,725

858,189

836,061

   Total loans and leases

4,729,581

4,634,594

4,822,607

4,736,028

4,603,913

Allowance for loan and lease losses

(56,398)

(55,106)

(53,659)

(52,822)

(51,686)

   Net loans and leases

4,673,183

4,579,488

4,768,948

4,683,206

4,552,227

Restricted equity securities

75,553

74,804

74,804

74,804

71,446

Premises and equipment, net of accumulated depreciation

77,892

79,252

80,619

81,479

82,166

Deferred tax asset

28,466

25,834

27,687

29,168

27,799

Goodwill

137,890

137,890

137,890

137,890

137,890

Identified intangible assets, net of accumulated amortization

12,082

12,806

13,544

14,371

15,199

Other real estate owned and repossessed assets

2,412

2,023

1,456

2,463

1,246

Other assets*

80,111

79,526

80,479

78,945

77,624

    Total assets*

$          5,782,934

$              5,755,146

$                        5,800,948

$                           5,718,944

$           5,588,306

LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits:

Non-interest-bearing deposits:

      Demand checking accounts

$              783,331

$                 729,932

$                            726,118

$                              705,604

$              716,883

Interest-bearing deposits:

      NOW accounts

247,172

237,200

235,063

220,766

209,682

      Savings accounts

532,184

571,030

531,727

532,790

518,343

      Money market accounts

1,523,798

1,525,053

1,518,490

1,522,612

1,516,023

      Certificate of deposit accounts

1,042,923

1,051,580

946,708

907,432

900,216

      Total interest-bearing deposits

3,346,077

3,384,863

3,231,988

3,183,600

3,144,264

        Total deposits

4,129,408

4,114,795

3,958,106

3,889,204

3,861,147

Borrowed funds:

      Advances from the FHLBB

823,452

806,491

1,004,026

1,027,211

1,005,644

      Subordinated debentures and notes

82,850

82,806

82,763

82,763

9,201

Other borrowed funds

31,346

35,628

39,615

22,891

26,159

                Total borrowed funds

937,648

924,925

1,126,404

1,132,865

1,041,004

Mortgagors' escrow accounts

7,494

8,414

8,501

8,757

8,359

Accrued expenses and other liabilities

49,792

51,046

61,332

50,430

45,411

                  Total liabilities

5,124,342

5,099,180

5,154,343

5,081,256

4,955,921

Stockholders' equity:

 Brookline Bancorp, Inc. stockholders' equity:

       Common stock, $0.01 par value; 200,000,000 shares authorized; 75,744,445 shares issued

757

757

757

757

757

   Additional paid-in capital

618,044

617,845

617,475

616,997

617,709

   Retained earnings, partially restricted*

96,128

90,589

84,860

79,959

74,193

   Accumulated other comprehensive income (loss)

(1,775)

1,747

(1,622)

(4,681)

(3,209)

Treasury stock, at cost;

      5,048,525 shares, 5,042,238 shares, 5,040,571 shares, 5,035,956  shares, and 5,144,807 shares, respectively

(58,372)

(58,301)

(58,282)

(58,228)

(59,487)

Unallocated common stock held by the Employee Stock Ownership Plan;

232,224 shares, 241,803 shares, 251,382 shares, 261,453 shares, and 271,524 shares, respectively

(1,266)

(1,318)

(1,370)

(1,425)

(1,480)

              Total Brookline Bancorp, Inc. stockholders' equity*

653,516

651,319

641,818

633,379

628,483

 Noncontrolling interest in subsidiary

5,076

4,647

4,787

4,309

3,902

     Total stockholders' equity*

658,592

655,966

646,605

637,688

632,385

     Total liabilities and stockholders' equity*

$          5,782,934

$              5,755,146

$                       5,800,948

$                          5,718,944

$          5,588,306

(*) Previously reported amounts prior to January 1, 2015 have been restated to reflect a retrospective change in accounting principle for investments in qualified affordable housing projects, in accordance with ASU 2014-01.

 

 

BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Consolidated Statements of Income (Unaudited)

Three Months Ended

June 30,

2015

March 31,

2015

December 31,

2014

September 30,

2014

June 30,

2014

(In Thousands Except Share Data)

Interest and dividend income:

   Loans and leases

$        51,684

$           53,381

$                 52,637

$                   51,769

$        50,433

   Debt securities

2,931

2,683

2,596

2,312

2,360

   Marketable and restricted equity securities

491

524

564

520

539

   Short-term investments

60

21

29

15

14

       Total interest and dividend income

55,166

56,609

55,826

54,616

53,346

Interest expense:

   Deposits

4,296

4,304

4,320

4,248

4,201

   Borrowed funds

3,698

3,777

3,930

3,044

2,711

       Total interest expense

7,994

8,081

8,250

7,292

6,912

Net interest income

47,172

48,528

47,576

47,324

46,434

Provision for credit losses

1,913

2,263

1,724

2,034

2,276

     Net interest income after provision for credit losses

45,259

46,265

45,852

45,290

44,158

Non-interest income:

   Deposit fees

2,195

2,066

2,177

2,352

2,204

   Loan fees

271

342

331

253

126

   Loan level derivative income, net

941

562

322

62

   Gain/(loss) on sales of securities, net

78

(13)

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

279

869

323

538

54

   (Loss)/gain on sale/disposals of premises and equipment, net

(2)

(6)

   Litigation settlement

1,412

   Other

1,181

1,193

1,070

1,314

1,395

       Total non-interest income*

4,867

4,470

4,541

6,189

3,822

Non-interest expense:

   Compensation and employee benefits

17,085

17,524

18,216

18,258

17,295

   Occupancy

3,437

3,472

3,401

3,334

3,154

   Equipment and data processing

3,680

4,020

4,102

4,193

4,348

   Professional services

1,163

1,094

1,159

991

1,480

   FDIC insurance

831

867

782

873

847

   Advertising and marketing

823

748

872

745

776

   Amortization of identified intangible assets

724

738

827

828

827

   Other

2,709

2,863

3,096

2,692

2,488

     Total non-interest expense

30,452

31,326

32,455

31,914

31,215

 Income before provision for income taxes*

19,674

19,409

17,938

19,565

16,765

Provision for income taxes*

7,115

7,104

6,586

7,163

6,158

    Net income before noncontrolling interest in subsidiary*

12,559

12,305

11,352

12,402

10,607

Less net income attributable to noncontrolling interest in subsidiary

694

602

477

662

$             476

    Net income attributable to Brookline Bancorp, Inc.*

$        11,865

$           11,703

$10,875

$11,740

10,131

Earnings per common share:*

    Basic

$            0.17

$               0.17

$                     0.16

$                       0.17

$            0.15

    Diluted

$            0.17

$               0.17

$                     0.16

$                       0.17

$            0.14

Weighted average common shares outstanding during the period:

    Basic

70,049,829

70,036,090

70,024,495

69,989,909

69,866,576

    Diluted

70,215,850

70,164,105

70,130,243

70,088,987

70,012,377

Dividends declared per common share

$            0.09

$             0.085

$                   0.085

$                     0.085

$          0.085

(*) Previously reported amounts prior to January 1, 2015 have been restated to reflect a retrospective change in accounting principle for investments in qualified affordable housing projects, in accordance with ASU 2014-01.

 

 

BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Consolidated Statements of Income (Unaudited)

Six Months Ended June 30,

2015

2014

(In Thousands Except Share Data)

Interest and dividend income:

Loans and leases

$      105,065

$      102,375

Debt securities

5,614

4,619

Marketable and restricted equity securities

1,015

988

Short-term investments

81

58

   Total interest and dividend income

111,775

108,040

Interest expense:

Deposits

8,600

8,492

Borrowed funds

7,475

5,380

   Total interest expense

16,075

13,872

Net interest income

95,700

94,168

Provision for credit losses

4,176

4,719

   Net interest income after provision for credit losses

91,524

89,449

Non-interest income:

Deposit Fees

4,261

4,163

Loan Fees

613

560

Loan level derivative income, net

941

62

Loss on sales of securities, net

(13)

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

1,148

656

Gain on sale/disposals of premises and equipment, net

1,504

Other

2,374

2,518

     Total non-interest income*

9,337

9,450

Non-interest expense:

  Compensation and employee benefits

34,609

35,327

  Occupancy

6,909

7,559

  Equipment and data processing

7,700

8,725

  Professional services

2,257

3,207

  FDIC insurance

1,698

1,707

  Advertising and marketing

1,571

1,441

  Amortization of identified intangible assets

1,462

1,688

  Other

5,572

5,137

       Total non-interest expense

61,778

64,791

 Income before provision for income taxes*

39,083

34,108

Provision for income taxes*

14,219

12,537

     Net income before noncontrolling interest in subsidiary*

24,864

21,571

Less net income attributable to noncontrolling interest in subsidiary

1,296

898

   Net income attributable to Brookline Bancorp, Inc.*

$        23,568

$        20,673

Earnings per common share:

   Basic

$            0.34

$            0.30

   Diluted

$            0.34

$            0.29

Weighted average common shares outstanding during the period:

   Basic

70,042,997

69,881,055

    Diluted

70,190,015

69,998,219

Dividends declared per common share

$          0.175

$          0.170

(*) Previously reported amounts prior to January 1, 2015 have been restated to reflect a retrospective change in accounting principle for investments in qualified affordable housing projects, in accordance with ASU 2014-01.

 

 

BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Asset Quality Analysis (Unaudited)

At and for the Three Months Ended

June 30, 2015

March 31, 2015

December 31, 2014

September 30, 2014

June 30, 2014

(Dollars in Thousands)

NONPERFORMING ASSETS:

Loans and leases accounted for on a nonaccrual basis:

Commercial real estate mortgage

$          3,174

$             3,250

$                   1,009

$                     3,174

$          3,011

Multi-family mortgage

309

299

Construction

    Total commercial real estate loans

3,483

3,250

1,009

3,473

3,011

Commercial

12,316

12,039

5,196

6,071

6,383

Equipment financing

2,639

2,321

3,223

2,756

3,251

Condominium association

    Total commercial loans and leases

14,955

14,360

8,419

8,827

9,634

Indirect automobile loans

417

468

645

474

325

Residential mortgage

2,421

2,632

1,682

2,636

2,384

Home equity

2,144

1,979

1,918

1,865

1,771

Other consumer

42

45

41

47

36

    Total consumer loans

4,607

4,656

3,641

4,548

4,191

    Total nonaccrual loans and leases

23,462

22,734

13,714

17,322

17,161

Other real estate owned

1,676

1,043

953

1,536

675

Other repossessed assets

736

980

503

927

571

    Total nonperforming assets

$        25,874

$           24,757

$                 15,170

$                   19,785

$        18,407

Loans and leases past due greater than 90 days and still accruing

$        10,220

$             8,061

$                   6,008

$                     3,919

$          6,653

Troubled debt restructurings on accrual

14,205

14,184

14,815

15,174

12,396

Troubled debt restructurings on nonaccrual

5,981

6,126

5,625

5,609

5,992

    Total troubled debt restructurings

$        20,186

$           20,310

$                 20,440

$                   20,783

$        18,388

Nonperforming loans and leases as a percentage of total loans and leases

0.50 %

0.49 %

0.28 %

0.37 %

0.37 %

Nonperforming assets as a percentage of total assets*

0.45 %

0.43 %

0.26 %

0.35 %

0.33 %

PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:

Allowance for loan and lease losses at beginning of period

$        55,106

$           53,659

$                 52,822

$                   51,686

$        50,224

Charge-offs

(1,029)

(1,665)

(1,068)

(1,136)

(1,196)

Recoveries

528

811

194

343

476

    Net charge-offs

(501)

(854)

(874)

(793)

(720)

Provision for loan and lease losses

1,793

2,301

1,711

1,929

2,182

    Allowance for loan and lease losses at end of period

$        56,398

$           55,106

$                 53,659

$                   52,822

$        51,686

Allowance for loan and lease losses as a percentage of total loans and leases

1.19 %

1.19 %

1.11 %

1.12 %

1.12 %

Allowance for loan and lease losses related to originated loans and leases as a

percentage of originated loans and leases

1.27 %

1.28 %

1.20 %

1.26 %

1.31 %

NET CHARGE-OFFS:

Commercial real estate loans

$             162

$                388

$                        62

$                          64

$                —

Commercial loans and leases

151

238

480

348

578

Indirect automobile loans

(13)

239

281

208

55

Consumer loans

201

(11)

51

173

87

    Total net charge-offs

$             501

$                854

$                      874

$                        793

$             720

Net loan and lease charge-offs as a percentage of average loans and leases (annualized)

0.04 %

0.07 %

0.07 %

0.07 %

0.06 %

(*) Previously reported amounts prior to January 1, 2015 have been restated to reflect a retrospective change in accounting principle for investments in qualified affordable housing projects, in accordance with ASU 2014-01.

 

 

BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Average Yields / Costs (Unaudited)

Three Months Ended

June 30, 2015

March 31, 2015

June 30, 2014

Average Balance

Interest (1)

Average Yield/ Cost

Average Balance

Interest (1)

Average Yield/ Cost

Average Balance

Interest (1)

Average Yield/ Cost

(Dollars in Thousands)

Assets:

Interest-earning assets:

Investments:

  Debt securities (2)

$      591,120

$   2,941

1.99 %

$      554,611

$   2,683

1.94 %

$      526,471

$   2,360

1.79 %

  Marketable and restricted equity

  securities (2)

76,332

493

2.59 %

75,783

521

2.75 %

69,483

543

3.13 %

  Short-term investments

85,737

60

0.28 %

49,841

21

0.17 %

36,850

14

0.16 %

    Total investments

753,189

3,494

1.86 %

680,235

3,225

1.90 %

632,804

2,917

1.84 %

Loans and Leases:

  Commercial real estate loans (3)

2,505,925

26,391

4.21 %

2,475,950

26,245

4.24 %

2,288,018

25,395

4.42 %

  Commercial loans (3)

639,609

6,394

3.96 %

610,695

6,506

4.26 %

504,572

5,246

4.12 %

  Equipment financing (3)

627,032

10,793

6.89 %

611,309

10,544

6.90 %

541,029

9,155

6.77 %

  Indirect automobile loans (3)

21,171

218

4.13 %

282,494

2,142

3.08 %

374,489

3,032

3.25 %

  Residential mortgage loans (3)

589,171

5,260

3.57 %

576,858

5,307

3.68 %

532,310

4,918

3.70 %

  Other consumer loans (3)

308,932

2,838

3.68 %

299,119

2,828

3.83 %

277,802

2,833

4.09 %

    Total loans and leases

4,691,840

51,894

4.42 %

4,856,425

53,572

4.41 %

4,518,220

50,579

4.46 %

      Total interest-earning assets

5,445,029

55,388

4.07 %

5,536,660

56,797

4.10 %

5,151,024

53,496

4.15 %

Allowance for loan and lease losses

(55,427)

(54,319)

(50,809)

Non-interest-earning assets*

373,018

369,773

359,789

    Total assets*

$   5,762,620

$   5,852,114

$   5,460,004

Liabilities and Stockholders' Equity:

Interest-bearing liabilities:

Deposits:

  NOW accounts

$      248,786

$        45

0.07 %

$      237,718

$        44

0.08 %

$      217,082

$        42

0.08 %

  Savings accounts

554,618

263

0.19 %

541,595

273

0.20 %

523,773

303

0.23 %

  Money market accounts

1,544,877

1,693

0.44 %

1,536,751

1,816

0.48 %

1,528,959

1,936

0.51 %

  Certificates of deposit

1,049,297

2,295

0.88 %

1,033,511

2,171

0.85 %

901,272

1,920

0.85 %

    Total interest-bearing deposits

3,397,578

4,296

0.51 %

3,349,575

4,304

0.52 %

3,171,086

4,201

0.53 %

Borrowings

  Advances from the FHLBB

782,434

2,415

1.22 %

941,314

2,504

1.06 %

892,770

2,602

1.15 %

  Subordinated debentures and notes

82,827

1,250

6.03 %

82,784

1,248

6.03 %

9,189

99

4.31 %

Other borrowed funds

34,546

33

0.39 %

37,806

25

0.27 %

25,938

10

0.15 %

    Total borrowings

899,807

3,698

1.63 %

1,061,904

3,777

1.42 %

927,897

2,711

1.16 %

Total interest-bearing liabilities

4,297,385

7,994

0.75 %

4,411,479

8,081

0.74 %

4,098,983

6,912

0.68 %

  Non-interest-bearing liabilities:

  Demand checking accounts

750,827

728,099

690,549

Other non-interest-bearing liabilities

54,352

59,226

39,219

        Total liabilities

5,102,564

5,198,804

4,828,751

Brookline Bancorp, Inc. stockholders' equity*

655,223

648,683

627,114

Noncontrolling interest in subsidiary

4,833

4,627

4,139

      Total liabilities and equity*

$   5,762,620

$   5,852,114

$   5,460,004

Net interest income (tax-equivalent basis)

/Interest-rate spread (4)

47,394

3.32 %

48,716

3.36 %

46,584

3.47 %

Less adjustment of tax-exempt income

222

188

150

Net interest income

$   47,172

$   48,528

$   46,434

Net interest margin (5)

3.49 %

3.57 %

3.63 %

(1) Tax-exempt income on debt securities, equity securities and revenue bonds included in commercial real estate loans is included on a tax-equivalent basis.

(2) Average balances include unrealized gains (losses) on investment securities. Dividend payments may not be consistent and average yield on equity securities may vary from month to month.

(3) Loans on nonaccrual status are included in the average balances.

(4) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.

(5) Net interest margin represents net interest income (tax-equivalent basis) divided by average interest-earning assets.

(*) Previously reported amounts prior to January 1, 2015 have been restated to reflect a retrospective change in accounting principle for investments in qualified affordable housing projects, in accordance with ASU 2014-01.

 

 

BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Average Yields / Costs (Unaudited)

Six Months Ended

June 30, 2015

June 30, 2014

Average Balance

Interest (1)

Average Yield/ Cost

Average Balance

Interest (1)

Average Yield/ Cost

(Dollars in Thousands)

Assets:

Interest-earning assets:

Investments:

  Debt securities (2)

$      572,966

$     5,625

1.96 %

$      514,134

$     4,626

1.80 %

  Marketable and restricted equity securities (2)

76,059

1,015

2.67 %

68,692

992

2.89 %

  Short-term investments

67,888

81

0.24 %

41,317

58

0.28 %

    Total investments

716,913

6,721

1.87 %

624,143

5,676

1.82 %

Loans and Leases:

  Commercial real estate loans (3)

2,491,020

52,636

4.23 %

2,258,422

51,097

4.53 %

  Commercial loans (3)

625,231

12,901

4.11 %

489,732

9,939

4.04 %

  Equipment financing (3)

619,214

21,337

6.89 %

532,570

20,192

7.58 %

  Indirect automobile loans (3)

151,110

2,360

3.15 %

379,633

6,296

3.34 %

  Residential mortgage loans (3)

583,049

10,568

3.62 %

532,451

9,727

3.65 %

  Other consumer loans (3)

304,052

5,666

3.76 %

272,532

5,412

4.00 %

    Total loans and leases

4,773,676

105,468

4.42 %

4,465,340

102,663

4.60 %

      Total interest-earning assets

5,490,589

112,189

4.09 %

5,089,483

108,339

4.26 %

Allowance for loan and lease losses

(54,876)

(49,953)

Non-interest-earning assets*

371,408

364,175

  Total assets*

$   5,807,121

$   5,403,705

Liabilities and Stockholders' Equity:

Interest-bearing liabilities:

Deposits:

  NOW accounts

$      243,283

$          88

0.07 %

$      215,826

$          83

0.08 %

  Savings accounts

548,143

536

0.20 %

516,206

606

0.24 %

  Money market accounts

1,540,837

3,509

0.46 %

1,517,537

3,895

0.52 %

  Certificates of deposit

1,041,447

4,467

0.86 %

914,166

3,908

0.86 %

    Total interest-bearing deposits

3,373,710

8,600

0.51 %

3,163,735

8,492

0.54 %

Borrowings

  Advances from the FHLBB

861,435

4,919

1.14 %

848,495

5,133

1.20 %

  Subordinated debentures and notes

82,806

2,498

6.03 %

9,180

198

4.31 %

Other borrowed funds

36,167

58

0.32 %

27,593

49

0.36 %

    Total borrowings

980,408

7,475

1.52 %

885,268

5,380

1.21 %

                 Total interest-bearing liabilities

4,354,118

16,075

0.74 %

4,049,003

13,872

0.69 %

Non-interest-bearing liabilities:

   Demand checking accounts

739,526

682,599

Other non-interest-bearing liabilities

56,775

43,141

         Total liabilities

5,150,419

4,774,743

Brookline Bancorp, Inc. stockholders' equity*

651,971

624,769

Noncontrolling interest in subsidiary

4,731

4,193

          Total liabilities and equity*

$   5,807,121

$   5,403,705

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

96,114

3.35 %

94,467

3.57 %

Less adjustment of tax-exempt income

414

299

Net interest income

$   95,700

$   94,168

Net interest margin (5)

3.53 %

3.74 %

(1) Tax-exempt income on debt securities, equity securities and revenue bonds included in commercial real estate loans is included on a tax-equivalent basis.

(2) Average balances include unrealized gains (losses) on investment securities. Dividend payments may not be consistent and average yield on equity securities may vary from month to month.

(3) Loans on nonaccrual status are included in the average balances.

(4) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.

(5) Net interest margin represents net interest income (tax-equivalent basis) divided by average interest-earning assets.

(*) Previously reported amounts prior to January 1, 2015 have been restated to reflect a retrospective change in accounting principle for investments in qualified affordable housing projects, in accordance with ASU 2014-01.

 

 

BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Non-GAAP Financial Information (Unaudited)

At and for the Three Months Ended

June 30, 2015

March 31, 2015

December 31, 2014

September 30, 2014

June 30, 2014

(Dollars in Thousands)

Net income, as reported*

$        11,865

$           11,703

$                 10,875

$                   11,740

$        10,131

Average total assets*

$   5,762,620

$      5,852,114

$            5,757,715

$              5,654,792

$   5,460,004

Less: Average goodwill and average identified

intangible assets, net

150,385

151,125

151,932

152,755

153,577

Average tangible assets*

$   5,612,235

$      5,700,989

$            5,605,783

$              5,502,037

$   5,306,427

Return on average tangible assets

(annualized)*

0.85 %

0.82 %

0.78 %

0.85 %

0.76 %

Average total stockholders' equity*

$      655,223

$         648,683

$               640,706

$                 633,406

$      627,114

Less: Average goodwill and average identified

intangible assets, net

150,385

151,125

151,932

152,755

153,577

Average tangible stockholders' equity*

$      504,838

$         497,558

$               488,774

$                 480,651

$      473,537

Return on average tangible stockholders'

equity (annualized)*

9.40 %

9.41 %

8.90 %

9.77 %

8.56 %

Brookline Bancorp, Inc. stockholders' equity*

$      653,516

$         651,319

$               641,818

$                 633,379

$      628,483

Less:

  Goodwill

137,890

137,890

137,890

137,890

137,890

  Identified intangible assets, net

12,082

12,806

13,544

14,371

15,199

Tangible stockholders' equity*

$      503,544

$         500,623

$               490,384

$                 481,118

$      475,394

Total assets*

$   5,782,934

$      5,755,146

$            5,800,948

$              5,718,944

$   5,588,306

Less:

  Goodwill

137,890

137,890

137,890

137,890

137,890

  Identified intangible assets, net

12,082

12,806

13,544

14,371

15,199

Tangible assets*

$   5,632,962

$      5,604,450

$            5,649,514

$              5,566,683

$   5,435,217

Tangible stockholders' equity to tangible

assets*

8.94 %

8.93 %

8.68 %

8.64 %

8.75 %

Tangible stockholders' equity*

$      503,544

$         500,623

$               490,384

$                 481,118

$      475,394

Number of common shares issued

75,744,445

75,744,445

75,744,445

75,744,445

75,744,445

  Less:

    Treasury shares

5,048,525

5,042,238

5,040,571

5,035,956

5,144,807

    Unallocated ESOP shares

232,224

241,803

251,382

261,453

271,524

    Unvested restricted shares

406,566

418,035

419,702

427,952

434,459

Number of common shares outstanding

70,057,130

70,042,369

70,032,790

70,019,084

69,893,655

Tangible book value per common share*

$            7.19

$               7.15

$                     7.00

$                       6.87

$            6.80

Allowance for loan and lease losses

$        56,398

$           55,106

$                 53,659

$                   52,822

$        51,686

  Less:

    Allowance for acquired loans and leases losses

2,655

2,911

2,848

1,933

1,247

      Allowance for originated loan and lease losses

$        53,743

$           52,195

$                 50,811

$                   50,889

$        50,439

Total loans and leases

$   4,729,581

$      4,634,594

$            4,822,607

$              4,736,028

$   4,603,913

  Less:

    Total acquired loans and leases

509,028

561,103

590,654

709,404

747,106

      Total originated loans and leases

$   4,220,553

$      4,073,491

$            4,231,953

$              4,026,624

$   3,856,807

Allowance for loan and lease losses related to

originated loans and leases as a percentage

of originated loans and leases

1.27 %

1.28 %

1.20 %

1.26 %

1.31 %

(*) Previously reported amounts January 1, 2015 have been restated to reflect a retrospective change in accounting principle for investments in qualified affordable housing projects, in accordance with ASU 2014-01.

 

 

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SOURCE Brookline Bancorp, Inc.



RELATED LINKS

http://www.brooklinebank.com