Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced net income of $10.4 million, or $0.15 per basic share and diluted share, for the first quarter of 2014, compared to $8.8 million, or $0.13 per basic and diluted share, for the first quarter of 2013, and $7.7 million, or $0.11 per basic and diluted share, for the fourth quarter of 2013.

The Company’s 2014 first quarter results included $2.1 million in additional accretion related to a reforecast of certain acquired loans, the sale of a building resulting in a gain of $1.6 million, offset by charges of $1.3 million related to the consolidation of an operations center, discontinuance of two branch locations and CFO recruitment. Excluding these items, net income would have been $0.13 per basic and diluted share.

Paul Perrault, President and Chief Executive Officer of Brookline Bancorp, Inc., stated: "We continue to experience the rewards of the strong foundation that we built in order to be the preferred financial institution in our market area. Our commercial bankers produced strong loan growth in the quarter and prospects remain encouraging for the quarters ahead. Recently, Carl M. Carlson joined Brookline Bancorp, Inc. as its Chief Financial Officer and Treasurer. Carl is an accomplished banker and is settling in well with the management team.”

BALANCE SHEET

Total assets increased $93.7 million during the first quarter of 2014 to $5.4 billion at March 31, 2014, and increased $308.4 million from $5.1 billion at March 31, 2013. The growth in total assets during the first quarter of 2014 was primarily driven by loans and leases, which increased $99.5 million to $4.5 billion at March 31, 2014, representing 9.1 percent growth on an annualized basis. At March 31, 2014, the commercial real estate and commercial loan and lease portfolios totaled $3.3 billion, or 73.6 percent of total loans and leases, as compared to $3.2 billion, or 72.6 percent at December 31, 2013, and $2.9 billion, or 69.3 percent at March 31, 2013. Strong loan growth continued in our total commercial loan and lease portfolio, which increased $45.8 million during the first quarter of 2014, or 19.0 percent on an annualized basis. This growth offsets the decrease of $26.6 million in the indirect automobile loan portfolio during the same period.

Cash, cash equivalents, and investment securities increased $15.1 million quarter-to-quarter and $21.3 million year-to-year to $600.5 million, or 11.1 percent of total assets at March 31, 2014, as compared to $585.4 million, or 11.0 percent of total assets at December 31, 2013, and $579.2 million, or 11.3 percent of total assets at March 31, 2013. Deposits of $3.8 billion at March 31, 2014 were up $12.6 million from December 31, 2013 and up $221.6 million from March 31, 2013. Core deposits, which consist of demand checking, NOW, savings, and money market accounts, increased at a 4.1 percent annualized rate in the first quarter of 2014, raising the core deposit ratio to 76.1 percent at March 31, 2014 from 75.6 percent at December 31, 2013. Total borrowings at March 31, 2014 were $892.0 million, an increase of $79.5 million as compared to December 31, 2013, and $71.6 million as compared to March 31, 2013.

The ratio of stockholders’ equity to total assets was 11.46 percent at March 31, 2014, as compared to 11.53 percent at December 31, 2013. The ratio of tangible stockholders’ equity to tangible assets was 8.87 percent at March 31, 2014, as compared to 8.88 percent at December 31, 2013.

NET INTEREST INCOME

Net interest income for the first quarter of 2014 increased $4.0 million to $47.7 million from $43.7 million for the first quarter of 2013, largely as a result of a $0.6 million increase in interest income from investments, a $1.4 million increase in interest income from commercial real estate loans, a $2.8 million increase in accretion related to acquired loans, deposits and borrowed funds, a $1.7 million decrease in interest income due to the runoff in indirect auto loans and a $1.0 million decrease in interest expense on deposits and borrowings.

Net interest margin increased to 3.82 percent for the three months ended March 31, 2014 from 3.70 percent for the three months ended March 31, 2013.

PROVISION FOR LOAN LOSSES

The Company recorded a provision for loan losses of $2.4 million for the quarter ended March 31, 2014 as total loans grew, compared to $1.8 million a year earlier.

Net charge-offs were $0.7 million in the first quarter of 2014 compared to $0.4 million in the same period a year ago. The ratio of net charge-offs to average loans on an annualized basis was 0.06 percent compared to 0.04 percent a year ago.

The allowance for loan losses represented 1.13 percent of total loans at March 31, 2014 compared to 1.02 percent a year ago. The allowance for loan losses related to originated loans and leases as a percentage of originated loans and leases was 1.33 percent compared to 1.34 percent a year ago.

NON-INTEREST INCOME

Non-interest income for the quarter ended March 31, 2014 increased $1.8 million to $5.1 million from $3.3 million for the quarter ended March 31, 2013. Several factors contributed to the year-to-year increase, including a net $1.5 million gain on the sale of a building and a $0.3 million increase in gain on sales of loans held-for-sale, offset by a $0.2 million increase on the losses from investment in affordable housing projects, and a $0.1 million decrease in deposit fees.

NON-INTEREST EXPENSE

Non-interest expense for the quarter ended March 31, 2014 increased $2.8 million to $33.6 million from $30.8 million for the quarter ended March 31, 2013. The year-over-year increase in non-interest expense included an increase of $1.7 million in compensation and employee benefit expense driven primarily by additional staffing for certain initiatives including the opening of the Waltham, MA branch of Brookline Bank and to support the growth in Equipment Finance. Additionally, occupancy expense increased $1.3 million due, in part, to the recognition of future lease obligations associated with the consolidation of our operations center and two discontinued branch properties. These increases were offset by a decrease of $0.4 million in other expenses.

RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

The return on average assets increased during the first quarter of 2014 to 0.78 percent at March 31, 2014 from 0.70 percent for the first quarter of 2013.

The return on average tangible stockholders’ equity increased to 8.92 percent for the first quarter of 2014 from 7.70 percent for the quarter ended March 31, 2013.

ASSET QUALITY

Nonperforming loans and leases increased $1.6 million to $18.1 million at March 31, 2014 from $16.5 million at December 31, 2013. The ratio of nonperforming loans and leases to total loans and leases increased to 0.41 percent at March 31, 2014 from 0.38 percent at December 31, 2013. Nonperforming assets also increased $1.4 million to $19.4 million or 0.36 percent of total assets at March 31, 2014, from $18.1 million, or 0.34 percent of total assets, at December 31, 2013.

DIVIDEND DECLARED

The Company’s Board of Directors approved, for the 48th consecutive quarter, a dividend of $0.085 per share. The dividend will be paid on May 23, 2014 to shareholders of record on May 9, 2014.

CONFERENCE CALL

The Company will conduct a conference call/webcast at 1:30 PM Eastern Time on Thursday, April 24, 2014 to discuss the results for the quarter, business highlights and outlook. The call can be accessed by dialing 888-317-6016 (United States) or 412-317-6016 (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 10042928. 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 $5.4 billion in assets and branch locations throughout 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. 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 FASB 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. 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.

 
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Selected Financial Highlights (Unaudited)
   
At and for the Three Months Ended
March 31,
2014   2013  
(Dollars In Thousands Except Share Data)
Earnings Data:
Net interest income $ 47,734 $ 43,669
Provision for credit losses 2,443 1,855
Non-interest income 5,124 3,327
Non-interest expense 33,576 30,772
Income before income taxes 16,839 14,369
Net income attributable to Brookline Bancorp, Inc. 10,422 8,813
 
Performance Ratios:
Net interest margin (1) 3.82 % 3.70 %
Interest-rate spread (1) 3.67 % 3.54 %
Return on average assets 0.78 % 0.70 %
Return on average stockholders' equity 6.70 % 5.72 %
Return on average tangible stockholders' equity (non-GAAP) 8.92 % 7.70 %
Efficiency ratio 63.52 % 65.48 %
 
Per Common Share Data:
Net income — Basic $ 0.15 $ 0.13
Net income — Diluted 0.15 0.13
Cash dividends declared 0.085 0.085
Book value per share (end of period) 8.88 8.80
Tangible book value per share (end of period) (non-GAAP) 6.68 6.53
Stock price (end of period) 9.42 9.14
 
(1) Calculated on a fully tax-equivalent basis.
 
 
At and for the Three Months Ended

March 31,
2014

  

December 31,
2013

  

September 30,
2013

  

June 30,
2013

  

March 31,
2013

(Dollars in Thousands)
Balance Sheet:
Total assets $ 5,418,785 $ 5,325,106 $ 5,236,229 $ 5,150,480 $ 5,110,378
Total loans and leases 4,461,997 4,362,465 4,299,477 4,205,015 4,173,985
Total deposits 3,847,650 3,835,006 3,737,978 3,656,981 3,626,033
Brookline Bancorp, Inc. stockholders’ equity 620,799 613,867 614,811 611,284 614,039
 
Asset Quality:
Nonperforming assets $ 19,430 $ 18,079 $ 16,738 $ 18,986 $ 22,941
Nonperforming assets as a percentage of total assets 0.36 % 0.34 % 0.32 % 0.37 % 0.45 %
Allowance for loan and lease losses $ 50,224 $ 48,473 $ 46,390 $ 44,281 $ 42,532
Allowance for loan and lease losses as a percentage of total loans and leases 1.13 % 1.11 % 1.08 % 1.05 % 1.02 %
Net loan and lease charge-offs $ 666 $ 1,676 $ 621 $ 639 $ 419
Net loan and lease charge-offs as a percentage of average loans and leases (annualized) 0.06 % 0.16 % 0.06 % 0.06 % 0.04 %
 
Capital Ratios:
Stockholders’ equity to total assets 11.46 % 11.53 % 11.74 % 11.87 % 12.02 %
Tangible stockholders’ equity to tangible assets (non-GAAP) 8.87 % 8.88 % 9.03 % 9.10 % 9.20 %
 

 
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets (Unaudited)
 
 

March 31,
2014

  

December 31,
2013

  

September 30,
2013

  

June 30,
2013

  

March 31,
2013

ASSETS (In Thousands Except Share Data)
Cash and due from banks $ 50,000 $ 37,148 $ 37,220 33,008 $ 39,330
Short-term investments 22,936   55,357   58,195   66,787   52,766  
Total cash and cash equivalents 72,936   92,505   95,415   99,795   92,096  
Investment securities available-for-sale 527,073 492,428 480,402 479,177 486,625
Investment securities held-to-maturity 500   500   500   500   500  
Total investment securities 527,573   492,928   480,902   479,677   487,125  
Loans and leases held-for-sale 177 13,372 200 4,221 839
Loans and leases:
Commercial real estate loans:
Commercial real estate mortgage 1,505,674 1,461,985 1,400,769 1,349,051 1,299,496
Multi-family mortgage 632,122 627,933 599,601 594,939 585,669
Construction 136,679   113,705   118,090   112,684   115,896  
Total commercial real estate loans 2,274,475   2,203,623   2,118,460   2,056,674   2,001,061  
Commercial loans and leases:
Commercial 437,957 407,792 409,376 376,507 399,781
Equipment financing 529,670 513,024 513,345 476,724 448,701
Condominium association 43,810   44,794   43,205   41,859   43,043  
Total commercial loans and leases 1,011,437   965,610   965,926   895,090   891,525  
Indirect automobile loans 373,965   400,531   440,949   479,782   510,954  
Consumer loans:
Residential mortgage 530,347 528,185 511,835 507,099 509,155
Home equity 261,836 257,461 254,888 257,839 254,048
Other consumer 9,937   7,055   7,419   8,531   7,242  
Total consumer loans 802,120   792,701   774,142   773,469   770,445  
Total loans and leases 4,461,997 4,362,465 4,299,477 4,205,015 4,173,985
Allowance for loan and lease losses (50,224 ) (48,473 ) (46,390 ) (44,281 ) (42,532 )
Net loans and leases 4,411,773   4,313,992   4,253,087   4,160,734   4,131,453  
Restricted equity securities 66,559 66,559 66,627 66,627 66,553
Premises and equipment, net of accumulated depreciation 81,396 80,505 79,504 76,867 74,223
Deferred tax asset 29,319 31,710 34,322 32,739 29,123
Goodwill 137,890 137,890 137,890 137,890 137,890
Identified intangible assets, net of accumulated amortization 16,026 16,887 18,015 19,168 20,345
Other real estate owned and repossessed assets 1,290 1,578 1,319 1,493 1,248
Other assets 73,846   77,180   68,948   71,269   69,483  
Total assets $ 5,418,785   $ 5,325,106   $ 5,236,229   5,150,480   $ 5,110,378  
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest-bearing deposits:
Demand checking accounts $ 682,383 $ 707,023 $ 667,181 644,507 $ 623,315
Interest-bearing deposits:
NOW accounts 212,877 210,602 204,164 196,778 194,313
Savings accounts 517,327 494,734 512,393 503,170 509,967
Money market accounts 1,517,290 1,487,979 1,403,881 1,340,024 1,303,231
Certificate of deposit accounts 917,773   934,668   950,359   972,502   995,207  
Total interest-bearing deposits 3,165,267   3,127,983   3,070,797   3,012,474   3,002,718  
Total deposits 3,847,650   3,835,006   3,737,978   3,656,981   3,626,033  
Borrowed funds:
Advances from the FHLBB 855,915 768,773 784,740 785,565 759,675
Other borrowed funds 36,101   43,782   44,062   44,501   60,772  
Total borrowed funds 892,016   812,555   828,802   830,066   820,447  
Mortgagors’ escrow accounts 8,696 7,889 8,008 7,465 7,823
Accrued expenses and other liabilities 45,703   51,485   42,820   41,097   38,825  
Total liabilities 4,794,065   4,706,935   4,617,608   4,535,609   4,493,128  
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 617,978 617,538 616,968 619,033 618,708
Retained earnings, partially restricted 69,361 64,903 63,210 59,747 56,211
Accumulated other comprehensive (loss) income (5,936 ) (7,915 ) (4,900 ) (4,441 ) 2,233
Treasury stock, at cost;
5,171,985 shares, 5,171,985 shares, 5,154,327 shares, 5,373,733 shares, and 5,373,733 shares, respectively (59,826 ) (59,826 ) (59,576 ) (62,107 ) (62,107 )
Unallocated common stock held by ESOP;
281,595 shares, 291,666 shares, 302,229 shares, 312,792 shares, and 323,355 shares, respectively (1,535 ) (1,590 ) (1,648 ) (1,705 ) (1,763 )
Total Brookline Bancorp, Inc. stockholders’ equity 620,799   613,867   614,811   611,284   614,039  
Noncontrolling interest in subsidiary 3,921   4,304   3,810   3,587   3,211  
Total stockholders' equity 624,720   618,171   618,621   614,871   617,250  
Total liabilities and stockholders' equity $ 5,418,785   $ 5,325,106   $ 5,236,229   5,150,480   $ 5,110,378  
 

 
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
 
  Three Months Ended March 31,
2014     2013  

(In Thousands Except Share Data)

Interest and dividend income:
Loans and leases $ 51,942 $ 49,419
Debt securities 2,259 1,852
Marketable and restricted equity securities 449 310
Short-term investments 44   31  
Total interest and dividend income 54,694   51,612  
Interest expense:
Deposits 4,291 4,834
Borrowed funds 2,669   3,109  
Total interest expense 6,960   7,943  
Net interest income 47,734 43,669
Provision for credit losses 2,443   1,855  
Net interest income after provision for credit losses 45,291   41,814  
Non-interest income:
Deposit Fees 1,959 2,066
Loan Fees 436 421
Loss from investments in affordable housing projects (504 ) (312 )
Gain on sales of loans and leases held-for-sale 602 298
Gain on sales/disposals of fixed assets, net 1,510 —
Other 1,121   854  
Total non-interest income 5,124   3,327  
Non-interest expense:
Compensation and employee benefits 18,032 16,298
Occupancy 4,405 3,083
Equipment and data processing 4,377 4,100
Professional services 1,727 1,501
FDIC insurance 860 934
Advertising and marketing 665 670
Amortization of identified intangible assets 861 1,165
Other 2,649   3,021  
Total non-interest expense 33,576   30,772  
Income before provision for income taxes 16,839 14,369
Provision for income taxes 5,995   5,129  
Net income before noncontrolling interest in subsidiary 10,844 9,240
Less net income attributable to noncontrolling interest in subsidiary 422   427  
Net income attributable to Brookline Bancorp, Inc. $ 10,422   $ 8,813  
Earnings per common share:
Basic $ 0.15 $ 0.13
Diluted $ 0.15 $ 0.13
Weighted average common shares outstanding during the period:
Basic 69,875,473 69,762,784
Diluted 69,983,999 69,830,630
Dividends declared per common share $ 0.085 $ 0.085
 

 
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Asset Quality Analysis (Unaudited)
 
At and for the Three Months Ended

March 31,
2014

  

December 31,
2013

  

September 30,
2013

  

June 30,
2013

  

March 31,
2013

(Dollars in Thousands)
NONPERFORMING ASSETS:
Loans and leases accounted for on a nonaccrual basis:
Commercial real estate mortgage $ 1,814 $ 1,098 $ 1,137 $ 2,682 $ 3,970
Multi-family mortgage — — 664 1,593 4,132
Construction —   —   —   —   —  
Total commercial real estate loans 1,814 1,098 1,801 4,275 8,102
 
Commercial 6,350 6,148 4,747 4,680 5,035
Equipment financing 4,633 4,115 4,116 4,014 3,595
Condominium association —   1   3   4   6  
Total commercial loans and leases 10,983 10,264 8,866 8,698 8,636
 
Indirect automobile loans 378 259 195 156 62
 
Residential mortgage 3,138 2,875 2,738 2,786 3,724
Home equity 1,799 1,987 1,801 1,557 1,150
Other consumer 28   18   18   21   19  
Total consumer loans 4,965 4,880 4,557 4,364 4,893
 
Total nonaccrual loans and leases 18,140 16,501 15,419 17,493 21,693
 
Other real estate owned 855 577 726 1,002 943
Other repossessed assets 435   1,001   593   491   305  
Total nonperforming assets $ 19,430   $ 18,079   $ 16,738   $ 18,986   $ 22,941  
 
Troubled debt restructurings on accrual 11,532 12,759 12,158 9,631 9,816
Troubled debt restructurings on nonaccrual 6,764   5,589   5,905   6,919   7,514  
Total troubled debt restructurings $ 18,296   $ 18,348   $ 18,063   $ 16,550   $ 17,330  
 
Nonperforming loans and leases as a percentage of total loans and leases 0.41 % 0.38 % 0.36 % 0.42 % 0.52 %
Nonperforming assets as a percentage of total assets 0.36 % 0.34 % 0.32 % 0.37 % 0.45 %
 
PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:
Allowance for loan and lease losses at beginning of period $ 48,473 $ 46,390 $ 44,281 $ 42,532 $ 41,152
Charge-offs (1,050 ) (2,193 ) (903 ) (1,028 ) (661 )
Recoveries 384   517   282   389   242  
Net charge-offs (666 ) (1,676 ) (621 ) (639 ) (419 )
Provision for loan and lease losses 2,417   3,759   2,730   2,388   1,799  
Allowance for loan and lease losses at end of period $ 50,224   $ 48,473   $ 46,390   $ 44,281   $ 42,532  
 
Allowance for loan and lease losses as a percentage of total loans and leases 1.13 % 1.11 % 1.08 % 1.05 % 1.02 %
Allowance for loan and lease losses related to originated loans and leases as a percentage of originated loans and leases 1.33 % 1.32 % 1.31 % 1.34 % 1.34 %
 
NET CHARGE-OFFS:
Commercial real estate loans $ — $ (9 ) $ 7 $ 81 $ (4 )
Commercial loans and leases 300 803 157 295 166
Indirect automobile loans 185 419 396 170 231
Consumer loans 181   463   61   93   26  
Total net charge-offs $ 666   $ 1,676   $ 621   $ 639   $ 419  
 
Net loan and lease charge-offs as a percentage of average loans and leases (annualized) 0.06 % 0.16 % 0.06 % 0.06 % 0.04 %
 

 
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Average Yields / Costs (Unaudited)
 
Three Months Ended
March 31, 2014   December 31, 2013   March 31, 2013

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) 502,598 2,263 1.80 % 474,968 2,141 1.80 % 471,509 1,861 1.58 %
Marketable and restricted equity securities (2) 66,954 497 2.99 % 66,990 350 2.08 % 68,550 357 2.10 %
Short-term investments $ 45,834   $ 44   0.39 % $ 72,304   $ 39   0.21 % $ 57,695   $ 29   0.20 %
Total investments 615,386   2,804   1.83 % 614,262   2,530   1.65 % 597,754   2,247   1.48 %
Loans and Leases:
Commercial real estate loans (3) 2,228,495 25,702 4.61 % 2,165,330 24,816 4.54 % 1,988,501 24,315 4.89 %
Commercial loans (3) 476,455 4,693 3.94 % 461,656 4,783 4.07 % 426,573 4,569 4.28 %
Equipment financing (3) 522,288 11,037 8.50 % 494,173 7,897 6.36 % 436,983 8,001 7.38 %
Indirect automobile loans (3) 384,833 3,264 3.44 % 420,456 3,743 3.53 % 526,923 4,916 3.78 %
Residential mortgage loans (3) 532,593 4,809 3.65 % 516,155 4,794 3.70 % 508,303 5,165 4.10 %
Other consumer loans (3) 267,204   2,579   3.91 % 264,528   2,738   4.10 % 265,047   2,616   4.00 %
Total loans and leases 4,411,868   52,084   4.74 % 4,322,298   48,771   4.47 % 4,152,330   49,582   4.80 %
Total interest-earning assets 5,027,254   54,888   4.38 % 4,936,560   51,301   4.12 % 4,750,084   51,829   4.38 %
Allowance for loan and lease losses (49,087 ) (46,566 ) (41,487 )
Non-interest-earning assets 383,550   397,488   362,566  
Total assets $ 5,361,717   $ 5,287,482   $ 5,071,163  
 
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts $ 206,226 $ 41 0.08 % $ 207,768 $ 45 0.09 % $ 190,320 $ 51 0.11 %
Savings accounts 508,555 303 0.24 % 502,802 312 0.25 % 514,383 337 0.27 %
Money market accounts 1,505,992 1,959 0.53 % 1,471,402 2,086 0.56 % 1,294,593 2,061 0.65 %
Certificates of deposit 927,199   1,988   0.87 % 942,595   2,116   0.89 % 1,002,602   2,385   0.96 %
Total interest-bearing deposits 3,147,972   4,291   0.55 % 3,124,567   4,559   0.58 % 3,001,898   4,834   0.65 %
Borrowings
Advances from the FHLBB 803,729 2,531 1.28 % 752,854 2,583 1.36 % 753,270 2,955 1.59 %
Other borrowed funds 38,438   138   1.45 % 40,729   133   1.29 % 63,065   154   0.99 %
Total borrowings 842,167   2,669   1.29 % 793,583   2,716   1.36 % 816,335   3,109   1.54 %
Total interest-bearing liabilities 3,990,139   6,960   0.71 % 3,918,150   7,275   0.74 % 3,818,233   7,943   0.84 %
Non-interest-bearing liabilities:
Demand checking accounts 698,462 701,163 607,878
Other non-interest-bearing liabilities 47,103   45,804   24,575  
Total liabilities 4,735,704 4,665,117 4,450,686
Brookline Bancorp, Inc. stockholders’ equity 621,764 618,385 616,627
Noncontrolling interest in subsidiary 4,249   3,980   3,850  
Total liabilities and equity $ 5,361,717   $ 5,287,482   $ 5,071,163  
Net interest income (tax-equivalent basis) /Interest-rate spread (4) 47,928 3.67 % 44,026 3.38 % 43,886 3.54 %
Less adjustment of tax-exempt income 194   252   217  
Net interest income $ 47,734   $ 43,774   $ 43,669  
Net interest margin (5) 3.82 % 3.54 % 3.70 %
 

(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.

 
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Non-GAAP Financial Information (Unaudited)
 
 

March 31,
2014

  

December 31,
2013

  

September 30,
2013

  

June 30,
2013

  

March 31,
2013

(Dollars in Thousands)
Brookline Bancorp, Inc. stockholders’ equity $ 620,799 $ 613,867 $ 614,811 $ 611,284 $ 614,039
Less:
Goodwill 137,890 137,890 137,890 137,890 137,890
Identified intangible assets 16,026   16,887   18,015   19,168   20,345  
Tangible stockholders' equity $ 466,883   $ 459,090   $ 458,906   $ 454,226   $ 455,804  
 
Total assets $ 5,418,785 $ 5,325,106 $ 5,236,229 $ 5,150,480 $ 5,110,378
Less:
Goodwill 137,890 137,890 137,890 137,890 137,890
Identified intangible assets 16,026   16,887   18,015   19,168   20,345  
Tangible assets $ 5,264,869   $ 5,170,329   $ 5,080,324   $ 4,993,422   $ 4,952,143  
 
Tangible stockholders’ equity to tangible assets 8.87 % 8.88 % 9.03 % 9.10 % 9.20 %
 

March 31,
2014

December 31,
2013

September 30,
2013

June 30,
2013

March 31,
2013

(Dollars in Thousands)
Tangible stockholders' equity $ 466,883   $ 459,090   $ 458,906   $ 454,226   $ 455,804  
 
Number of common shares issued 75,744,445 75,744,445 75,744,445 75,744,445 75,744,445
Less:
Treasury shares 5,171,985 5,171,985 5,154,327 5,373,733 5,373,733
Unallocated ESOP shares 281,595 291,666 302,229 312,792 323,355
Unvested restricted stocks 408,651   409,068   429,818   276,011   277,510  
Number of common shares outstanding 69,882,214   69,871,726   69,858,071   69,781,909   69,769,847  
 
Tangible book value per common share $ 6.68 $ 6.57 $ 6.57 $ 6.51 $ 6.53
 
March 31, 2014 December 31, 2013 September 30, 2013 June 30, 2013 March 31, 2013
(Dollars in Thousands)
Allowance for loan and lease losses $ 50,224 $ 48,473 $ 46,390 $ 44,281 $ 42,532
Less:
Allowance for acquired loans and leases losses 1,404   1,632   1,278   620   —  
Allowance for originated loan and lease losses $ 48,820   $ 46,841   $ 45,112   $ 43,661   $ 42,532  
 
Total loans and leases $ 4,461,997 $ 4,362,465 $ 4,299,477 $ 4,205,015 $ 4,173,985
Less:
Total acquired loans and leases 779,747   815,412   865,708   938,815   997,988  
Total originated loans and leases $ 3,682,250   $ 3,547,053   $ 3,433,769   $ 3,266,200   $ 3,175,997  
 
Allowance for loan and lease losses related to originated loans and leases as a percentage of originated loans and leases 1.33 % 1.32 % 1.31 % 1.34 % 1.34 %