BROOKLINE BANCORP, INC. BOSTON, Jan. 28, 2015 /PRNewswire/ -- Brookline Bancorp, Inc. (NASDAQ: BRKL) (the "Company") today announced net income of $10.8 million, or $0.15 per basic and diluted share, for the fourth quarter of 2014, compared to $11.6 million, or $0.17 per basic and diluted share, for the third quarter of 2014. Excluding the $1.4 million in other income from the litigation settlement, net income would have been $0.15 per basic and diluted share, for the third quarter of 2014.
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For the year ended December 31, 2014, the Company reported net income of $42.8 million, or $0.61 per basic and diluted share, compared to $35.4 million, or $0.51 per basic and diluted share, for the year ended December 31, 2013.
Paul Perrault, President and Chief Executive Officer of Brookline Bancorp, Inc., stated: "We are pleased to report over 20 percent growth in earnings for 2014. Our continued loan growth, exceptional asset quality and solid momentum has us well positioned for success in 2015."
BALANCE SHEET
Total assets of $5.8 billion at December 31, 2014 increased $81.9 million from September 30, 2014, and increased $474.8 million from December 31, 2013. The growth in total assets was driven by growth in the loan portfolio. At December 31, 2014, total loans and leases were $4.8 billion, representing an increase of $86.6 million from September 30, 2014, and an increase of $460.1 million from December 31, 2013. During the fourth quarter of 2014, total loans and leases grew 7.3 percent on an annualized basis. Strong loan growth continued in our commercial real estate and commercial loan and lease portfolios, which increased $110.3 million during the fourth quarter of 2014, or 12.5 percent on an annualized basis. At December 31, 2014, the commercial real estate and commercial loan and lease portfolios totaled $3.6 billion, or 75.4 percent of total loans and leases, as compared to $3.5 billion, or 74.4 percent at September 30, 2014, and $3.2 billion, or 72.6 percent at December 31, 2013.
Cash, cash equivalents, and investment securities decreased $2.2 million to $614.0 million, or 10.6 percent of total assets at December 31, 2014, as compared to $616.2 million, or 10.8 percent of total assets at September 30, 2014, and increased $28.6 million from $585.4 million, or 11.0 percent of total assets at December 31, 2013.
Total deposits of $4.0 billion at December 31, 2014 increased $68.9 million from September 30, 2014, and increased $123.1 million from December 31, 2013. Core deposits, which consist of demand checking, NOW, savings, and money market accounts, increased at a 4.0 percent annualized rate in the fourth quarter of 2014. The core deposit ratio decreased slightly to 76.1 percent at December 31, 2014 from 76.7 percent at September 30, 2014, but increased from 75.6 percent at December 31, 2013.
Total borrowings at December 31, 2014 were $1.1 billion, a decrease of $6.5 million as compared to September 30, 2014, and an increase of $313.8 million as compared to December 31, 2013.
The ratio of stockholders' equity to total assets was 11.05 percent at December 31, 2014, as compared to 11.06 percent at September 30, 2014 and 11.53 percent at December 31, 2013. The ratio of tangible stockholders' equity to tangible assets was 8.66 percent at December 31, 2014, as compared to 8.63 percent at September 30, 2014 and 8.88 percent at December 31, 2013.
NET INTEREST INCOME
Net interest income increased $0.3 million to $47.6 million during the fourth quarter of 2014 from the linked quarter. The increase of $0.9 million in interest income from loans and leases was driven by an increase of $1.1 million due to volume offset by a decrease of $0.2 million due to lower interest rates. In addition, interest income from investments increased $0.3 million, primarily driven by higher average balances and yields. The increase in interest income from loans and leases and investments was offset by a $0.9 million increase in interest expense from borrowed funds, primarily due to a full quarter of interest expense on the subordinated notes issued in mid-September. The net interest margin decreased 4 basis points to 3.50 percent for the three months ended December 31, 2014 from the linked quarter.
PROVISION FOR CREDIT LOSSES
Despite a slight increase in nonperforming loans and leases, provision for credit losses decreased $0.3 million to $1.7 million for the quarter ended December 31, 2014, from $2.0 million for the quarter ended September 30, 2014. The decrease was due to favorable trends in the credit characteristics of the commercial real estate, construction and indirect automobile portfolios, offset by additional reserves required for loan growth in the originated portfolios and credit deterioration in the acquired portfolios during the quarter.
Net charge-offs increased slightly to $0.9 million for the fourth quarter of 2014 compared to $0.8 million for the third quarter of 2014. The ratio of net charge-offs to average loans on an annualized basis remained constant at 0.07 percent for the fourth and third quarters of 2014.
The allowance for loan and lease losses represented 1.11 percent of total loans and leases at December 31, 2014, compared to 1.12 percent at September 30, 2014.
NON-INTEREST INCOME
Non-interest income for the quarter ended December 31, 2014 decreased $1.6 million to $4.1 million from the linked quarter. The decrease was largely driven by a litigation settlement of $1.4 million recorded during the third quarter.
NON-INTEREST EXPENSE
During the fourth quarter of 2014, the Company suspended the indirect automobile line of business and recognized $0.2 million in severance expense related to the origination staff and $0.1 million in occupancy costs associated with the remaining lease terms. Non-interest expense for the quarter ended December 31, 2014 increased $0.5 million to $32.5 million from the linked quarter. Several factors contributed to the increase. Loan expenses increased $0.2 million due to timing and origination volume in the fourth quarter of 2014. Expenses associated with collections and other real estate owned properties also increased $0.2 million in the same period.
RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY
The return on average assets decreased during the fourth quarter of 2014 to 0.75 percent at December 31, 2014 from 0.82 percent for the third quarter of 2014. The return on average tangible assets decreased to 0.77 percent for the fourth quarter of 2014 from 0.84 percent for the third quarter of 2014.
The return on average stockholders' equity decreased during the fourth quarter of 2014 to 6.74 percent from 7.32 percent for the third quarter of 2014. The return on average tangible stockholders' equity decreased to 8.85 percent for the fourth quarter of 2014 from 9.66 percent for the third quarter of 2014.
ASSET QUALITY
Nonperforming loans and leases increased $1.0 million to $18.3 million at December 31, 2014 from September 30, 2014. In the same period, the ratio of nonperforming loans and leases to total loans and leases increased 1 basis point to 0.38 percent at December 31, 2014. Nonperforming assets decreased slightly to $19.7 million at December 31, 2014 from $19.8 million at September 30, 2014. The ratio of nonperforming assets to total assets also decreased slightly to 0.34 percent at December 31, 2014 from 0.35 at September 30, 2014.
DIVIDEND DECLARED
The Company's Board of Directors approved a dividend of $0.085 per share. The dividend will be paid on February 27, 2015 to shareholders of record on February 13, 2015.
The Company did not repurchase any shares during the quarter ended December 31, 2014 under the $10 million stock repurchase plan approved by the Board of Directors on October 29, 2014.
CONFERENCE CALL
The Company will conduct a conference call/webcast at 1:30 PM Eastern Standard Time on Thursday, January 29, 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 10058427. 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
---------------------------------
December 31, 2014 September 30, 2014 June 30, 2014 March 31, December 31, 2013
2013
---
(Dollars In Thousands Except Share Data)
Earnings Data:
Net interest income $47,576 $47,324 $46,434 $47,734 $43,774
Provision for credit
losses 1,724 2,034 2,276 2,443 3,887
Non-interest income 4,075 5,656 3,290 5,124 3,907
Non-interest expense 32,463 31,924 31,222 33,576 31,320
Income before provision
for income taxes 17,464 19,022 16,226 16,839 12,474
Net income attributable
to Brookline Bancorp,
Inc. 10,786 11,581 9,976 10,422 7,654
Performance Ratios:
Net interest margin (1) 3.50 % 3.54 % 3.61 % 3.82 % 3.54 %
Interest-rate spread
(1) 3.34 % 3.40 % 3.47 % 3.67 % 3.38 %
Return on average
assets 0.75 % 0.82 % 0.73 % 0.78 % 0.58 %
Return on average
tangible assets (non-
GAAP) 0.77 % 0.84 % 0.75 % 0.80 % 0.60 %
Return on average
stockholders' equity 6.74 % 7.32 % 6.37 % 6.70 % 4.95 %
Return on average
tangible stockholders'
equity (non-GAAP) 8.85 % 9.66 % 8.44 % 8.92 % 6.61 %
Efficiency ratio 62.85 % 60.26 % 62.79 % 63.52 % 65.69 %
Per Common Share Data:
Net income - Basic $0.15 $0.17 $0.14 $0.15 $0.11
Net income - Diluted 0.15 0.17 0.14 0.15 0.11
Cash dividends declared 0.085 0.085 0.085 0.085 0.085
Book value per share
(end of period) 9.15 9.03 8.98 8.88 8.79
Tangible book value per
share (end of period)
(non-GAAP) 6.99 6.86 6.79 6.68 6.57
Stock price (end of
period) 10.03 8.55 9.37 9.42 9.55
Balance Sheet:
Total assets $5,799,880 $5,717,965 $5,587,486 $5,418,785 $5,325,106
Total loans and leases 4,822,607 4,736,028 4,603,913 4,461,997 4,362,465
Total deposits 3,958,106 3,889,204 3,861,147 3,847,650 3,835,006
Brookline Bancorp, Inc.
stockholders' equity 640,750 632,400 627,663 620,799 613,867
Asset Quality:
Nonperforming assets $19,748 $19,785 $18,407 $19,430 $18,079
Nonperforming assets as
a percentage of total
assets 0.34 % 0.33 % 0.36 % 0.34 % 0.32 %
Allowance for loan and
lease losses $53,659 $52,822 $51,686 $50,224 $48,473
Allowance for loan and
lease losses as a
percentage of total
loans and leases 1.11 % 1.12 % 1.13 % 1.11 % 1.08 %
Net loan and lease
charge-offs $874 $793 $720 $666 $1,676
Net loan and lease
charge-offs as a
percentage of average
loans and leases
(annualized) 0.07 % 0.07 % 0.06 % 0.06 % 0.16 %
Capital Ratios:
Stockholders' equity to
total assets 11.05 % 11.06 % 11.23 % 11.46 % 11.53 %
Tangible stockholders'
equity to tangible
assets (non-GAAP) 8.66 % 8.63 % 8.73 % 8.87 % 8.88 %
(1) Calculated on a fully tax-equivalent basis.
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets (Unaudited)
December 31, 2014 September 30, 2014 June 30, March 31, 2013 December 31, 2013
2014
----
ASSETS (In Thousands Except Share Data)
Cash and due from banks $36,893 $37,237 $58,962 $50,000 $37,148
Short-term investments 25,830 50,901 20,771 22,936 55,357
------ ------ ------ ------ ------
Total cash and cash equivalents 62,723 88,138 79,733 72,936 92,505
------ ------ ------ ------ ------
Investment securities available-
for-sale 550,761 527,516 528,586 527,073 492,428
Investment securities held-to-
maturity 500 500 500 500 500
--- --- --- --- ---
Total investment securities 551,261 528,016 529,086 527,573 492,928
------- ------- ------- ------- -------
Loans and leases held-for-sale 1,537 464 13,890 177 13,372
Loans and leases:
Commercial real estate loans:
Commercial real estate mortgage 1,680,082 1,610,592 1,545,483 1,505,674 1,461,985
Multi-family mortgage 639,706 630,852 631,371 632,122 627,933
Construction 148,013 161,279 137,731 136,679 113,705
------- ------- ------- ------- -------
Total commercial real estate
loans 2,467,801 2,402,723 2,314,585 2,274,475 2,203,623
--------- --------- --------- --------- ---------
Commercial loans and leases:
Commercial 514,077 495,712 478,856 437,957 407,792
Equipment financing 601,424 576,541 552,489 529,670 513,024
Condominium association 51,593 49,600 45,608 43,810 44,794
------ ------ ------ ------ ------
Total commercial loans and
leases 1,167,094 1,121,853 1,076,953 1,011,437 965,610
--------- --------- --------- --------- -------
Indirect automobile loans 316,987 353,263 376,314 373,965 400,531
------- ------- ------- ------- -------
Consumer loans:
Residential mortgage 571,920 570,128 550,814 530,347 528,185
Home equity 287,058 274,762 270,203 261,836 257,461
Other consumer 11,747 13,299 15,044 9,937 7,055
------ ------ ------ ----- -----
Total consumer loans 870,725 858,189 836,061 802,120 792,701
------- ------- ------- ------- -------
Total loans and leases 4,822,607 4,736,028 4,603,913 4,461,997 4,362,465
Allowance for loan and lease
losses (53,659) (52,822) (51,686) (50,224) (48,473)
------- ------- ------- ------- -------
Net loans and leases 4,768,948 4,683,206 4,552,227 4,411,773 4,313,992
--------- --------- --------- --------- ---------
Restricted equity securities 74,804 74,804 71,446 66,559 66,559
Premises and equipment, net of
accumulated depreciation 80,619 81,479 82,166 81,396 80,505
Deferred tax asset 27,687 29,168 27,799 29,319 31,710
Goodwill 137,890 137,890 137,890 137,890 137,890
Identified intangible assets,
net of accumulated amortization 13,544 14,371 15,199 16,026 16,887
Other real estate owned and
repossessed assets 1,456 2,463 1,246 1,290 1,578
Other assets 79,411 77,966 76,804 73,846 77,180
------ ------ ------ ------ ------
Total assets $5,799,880 $5,717,965 $5,587,486 $5,418,785 $5,325,106
========== ========== ========== ========== ==========
LIABILITIES AND STOCKHOLDERS'
EQUITY
Deposits:
Non-interest-bearing deposits:
Demand checking accounts $726,118 $705,604 $716,883 $682,383 $707,023
Interest-bearing deposits:
NOW accounts 235,063 220,766 209,682 212,877 210,602
Savings accounts 531,727 532,790 518,343 517,327 494,734
Money market accounts 1,518,490 1,522,612 1,516,023 1,517,290 1,487,979
Certificate of deposit accounts 946,708 907,432 900,216 917,773 934,668
------- ------- ------- ------- -------
Total interest-bearing deposits 3,231,988 3,183,600 3,144,264 3,165,267 3,127,983
--------- --------- --------- --------- ---------
Total deposits 3,958,106 3,889,204 3,861,147 3,847,650 3,835,006
--------- --------- --------- --------- ---------
Borrowed funds:
Advances from the FHLBB 1,004,026 1,027,211 1,005,644 855,915 768,773
Subordinated debentures and
notes 82,763 82,763 9,201 9,182 9,163
Other borrowed funds 39,615 22,891 26,159 26,919 34,619
------ ------ ------ ------ ------
Total borrowed funds 1,126,404 1,132,865 1,041,004 892,016 812,555
--------- --------- --------- ------- -------
Mortgagors' escrow accounts 8,501 8,757 8,359 8,696 7,889
Accrued expenses and other
liabilities 61,332 50,430 45,411 45,703 51,485
------ ------ ------ ------ ------
Total liabilities 5,154,343 5,081,256 4,955,921 4,794,065 4,706,935
--------- --------- --------- --------- ---------
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 617,475 616,997 617,709 617,978 617,538
Retained earnings, partially
restricted 83,792 78,980 73,373 69,361 64,903
Accumulated other comprehensive
loss (1,622) (4,681) (3,209) (5,936) (7,915)
Treasury stock, at cost;
5,040,571 shares, 5,035,956
shares, 5,144,807 shares,
5,171,985 shares, and 5,171,985
shares, respectively (58,282) (58,228) (59,487) (59,826) (59,826)
Unallocated common stock held by
ESOP;
251,382 shares, 261,453 shares,
271,524 shares, 281,595 shares,
and 291,666 shares,
respectively (1,370) (1,425) (1,480) (1,535) (1,590)
------ ------ ------ ------ ------
Total Brookline Bancorp, Inc.
stockholders' equity 640,750 632,400 627,663 620,799 613,867
------- ------- ------- ------- -------
Noncontrolling interest in
subsidiary 4,787 4,309 3,902 3,921 4,304
----- ----- ----- ----- -----
Total stockholders' equity 645,537 636,709 631,565 624,720 618,171
Total liabilities and
stockholders' equity $5,799,880 $5,717,965 $5,587,486 $5,418,785 $5,325,106
========== ========== ========== ========== ==========
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
Three Months Ended
------------------
December 31, 2014 September 30, 2014 June 30, 2014 March 31, 2014 December 31, 2013
----------------- ------------------ ------------- -------------- -----------------
(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases $52,637 $51,769 $50,433 $51,942 $48,573
Debt securities 2,596 2,312 2,360 2,259 2,136
Marketable and
restricted equity
securities 564 520 539 449 301
Short-term
investments 29 15 14 44 39
--- --- --- --- ---
Total interest and
dividend income 55,826 54,616 53,346 54,694 51,049
------ ------ ------ ------ ------
Interest expense:
Deposits 4,320 4,248 4,201 4,291 4,559
Borrowed funds 3,930 3,044 2,711 2,669 2,716
----- ----- ----- ----- -----
Total interest
expense 8,250 7,292 6,912 6,960 7,275
----- ----- ----- ----- -----
Net interest income 47,576 47,324 46,434 47,734 43,774
Provision for credit
losses 1,724 2,034 2,276 2,443 3,887
----- ----- ----- ----- -----
Net interest income
after provision for
credit losses 45,852 45,290 44,158 45,291 39,887
------ ------ ------ ------ ------
Non-interest income:
Deposit fees 2,177 2,352 2,204 1,959 2,188
Loan fees 841 601 192 436 474
Loss from
investments in
affordable housing
projects (474) (543) (539) (504) (318)
Gain on sales of
loans and leases
held-for-sale 323 538 54 602 11
Other 1,130 1,298 1,398 1,121 1,155
Gain/(loss) on
sales of
securities, net 78 - (13) - 397
(Loss)/gain on
sale/disposals of
premises and
equipment, net - (2) (6) 1,510 -
Litigation
settlement - 1,412 - - -
--- ----- --- --- ---
Total non-interest
income 4,075 5,656 3,290 5,124 3,907
----- ----- ----- ----- -----
Non-interest expense:
Compensation and
employee benefits 18,216 18,258 17,295 18,032 16,675
Occupancy 3,401 3,334 3,154 4,405 3,356
Equipment and data
processing 4,102 4,193 4,348 4,377 4,476
Professional
services 1,167 1,001 1,487 1,727 1,352
FDIC insurance 782 873 847 860 724
Advertising and
marketing 872 745 776 665 807
Amortization of
identified
intangible assets 827 828 827 861 1,127
Other 3,096 2,692 2,488 2,649 2,803
----- ----- ----- ----- -----
Total non-interest
expense 32,463 31,924 31,222 33,576 31,320
------ ------ ------ ------ ------
Income before
provision for
income taxes 17,464 19,022 16,226 16,839 12,474
Provision for income
taxes 6,201 6,779 5,774 5,995 4,325
----- ----- ----- ----- -----
Net income before
noncontrolling
interest in
subsidiary 11,263 12,243 10,452 10,844 8,149
Less net income
attributable to
noncontrolling
interest in
subsidiary 477 662 476 422 495
--- --- --- --- ---
Net income
attributable to
Brookline Bancorp,
Inc. $10,786 $11,581 $9,976 $10,422 $7,654
======= ======= ====== ======= ======
Earnings per common share:
Basic $0.15 $0.17 $0.14 $0.15 $0.11
Diluted $0.15 $0.17 $0.14 $0.15 $0.11
Weighted average common shares outstanding during the period:
Basic 70,024,495 69,989,909 69,886,576 69,875,473 69,862,175
Diluted 70,130,243 70,088,987 70,012,377 69,983,999 69,951,683
Dividends declared
per common share $0.085 $0.085 $0.085 $0.085 $0.085
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
Twelve Months Ended December
31,
----------------------------
2014 2013
---- ----
(In Thousands Except Share
Data)
Interest and dividend income:
Loans
and
leases $206,781 $197,098
Debt
securities 9,527 7,963
Marketable
and
restricted
equity
securities 2,072 1,212
Short-
term
investments 102 111
--- ---
Total
interest
and
dividend
income 218,482 206,384
------- -------
Interest expense:
Deposits 17,060 18,773
Borrowed
funds 12,354 11,393
------ ------
Total
interest
expense 29,414 30,166
------ ------
Net
interest
income 189,068 176,218
Provision
for
credit
losses 8,477 10,929
----- ------
Net
interest
income
after
provision
for
credit
losses 180,591 165,289
------- -------
Non-interest income:
Deposit
Fees 8,692 8,172
Loan
Fees 2,070 1,601
Loss
from
investments
in
affordable
housing
projects (2,060) (1,812)
Gain
on
sales
of
loans
and
leases
held-
for-
sale 1,517 608
Other 4,947 4,863
Gain
on
sales
of
securities,
net 65 397
Gain
on
sale/
disposals
of
premises
and
equipment,
net 1,502 -
Litigation
settlement 1,412 -
----- ---
Total
non-
interest
income 18,145 13,829
------ ------
Non-interest expense:
Compensation
and
employee
benefits 71,801 65,261
Occupancy 14,294 12,616
Equipment
and
data
processing 17,020 16,899
Professional
services 5,382 5,695
FDIC
insurance 3,362 3,102
Advertising
and
marketing 3,058 3,003
Amortization
of
identified
intangible
assets 3,343 4,623
Other 10,925 11,265
------ ------
Total
non-
interest
expense 129,185 122,464
------- -------
Income
before
provision
for
income
taxes 69,551 56,654
Provision
for
income
taxes 24,749 19,481
------ ------
Net
income
before
noncontrolling
interest
in
subsidiary 44,913 37,173
Less
net
income
attributable
to
noncontrolling
interest
in
subsidiary 2,037 1,787
----- -----
Net
income
attributable
to
Brookline
Bancorp,
Inc. $42,765 $35,386
======= =======
Earnings per common share:
Basic $0.61 $0.51
Diluted $0.61 $0.51
Weighted average common shares
outstanding during the period:
Basic 69,945,028 69,808,164
Diluted 70,054,815 69,883,924
Dividends
declared
per
common
share $0.340 $0.340
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Asset Quality Analysis (Unaudited)
At and for the Three Months Ended
---------------------------------
December 31, 2014 September 30, 2014 June 30, 2014 March 31, 2014 December 31, 2013
----------------- ------------------ ------------- -------------- -----------------
(Dollars in Thousands)
NONPERFORMING ASSETS:
Loans and leases accounted for on a nonaccrual basis:
Commercial real estate
mortgage $3,894 $3,174 $3,011 $1,814 $1,098
Multi-family mortgage 299 299 - - -
Construction - - - - -
Total commercial real estate
loans 4,193 3,473 3,011 1,814 1,098
Commercial 6,132 6,071 6,383 6,350 6,148
Equipment financing 3,223 2,756 3,251 4,633 4,115
Condominium association - - - - 1
--- --- --- --- ---
Total commercial loans and
leases 9,355 8,827 9,634 10,983 10,264
Indirect automobile loans 645 474 325 378 259
Residential mortgage 1,937 2,636 2,384 3,138 2,875
Home equity 2,121 1,865 1,771 1,799 1,987
Other consumer 41 47 36 28 18
--- --- --- --- ---
Total consumer loans 4,099 4,548 4,191 4,965 4,880
Total nonaccrual loans and
leases 18,292 17,322 17,161 18,140 16,501
Other real estate owned 953 1,536 675 855 577
Other repossessed assets 503 927 571 435 1,001
--- --- --- --- -----
Total nonperforming assets $19,748 $19,785 $18,407 $19,430 $18,079
======= ======= ======= ======= =======
Loans and leases past due
greater than 90 days and
still accruing $7,353 $3,919 $6,653 $7,774 $10,913
====== ====== ====== ====== =======
Troubled debt restructurings
on accrual 18,067 15,174 12,396 11,532 12,759
Troubled debt restructurings
on nonaccrual 6,487 5,609 5,992 6,764 5,589
----- ----- ----- ----- -----
Total troubled debt
restructurings $24,554 $20,783 $18,388 $18,296 $18,348
======= ======= ======= ======= =======
Nonperforming loans and
leases as a percentage of
total loans and leases 0.38 % 0.37 % 0.37 % 0.41 % 0.38 %
Nonperforming assets as a
percentage of total assets 0.34 % 0.35 % 0.33 % 0.36 % 0.34 %
PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:
Allowance for loan and lease
losses at beginning of
period $52,822 $51,686 $50,224 $48,473 $46,390
Charge-offs (1,068) (1,136) (1,196) (1,050) (2,193)
Recoveries 194 343 476 384 517
--- --- --- --- ---
Net charge-offs (874) (793) (720) (666) (1,676)
Provision for loan and lease
losses 1,711 1,929 2,182 2,417 3,759
----- ----- ----- ----- -----
Allowance for loan and lease
losses at end of period $53,659 $52,822 $51,686 $50,224 $48,473
======= ======= ======= ======= =======
Allowance for loan and lease
losses as a percentage of
total loans and leases 1.11 % 1.12 % 1.12 % 1.13 % 1.11 %
Allowance for loan and lease
losses related to originated
loans and leases as a
percentage of originated
loans and leases 1.20 % 1.26 % 1.31 % 1.33 % 1.32 %
NET CHARGE-OFFS:
Commercial real estate loans $62 $64 $ - $ - $(9)
Commercial loans and leases 480 348 578 300 803
Indirect automobile loans 281 208 55 185 419
Consumer loans 51 173 87 181 463
--- --- --- --- ---
Total net charge-offs $874 $793 $720 $666 $1,676
==== ==== ==== ==== ======
Net loan and lease charge-
offs as a percentage of
average loans and leases
(annualized) 0.07 % 0.07 % 0.06 % 0.06 % 0.16 %
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Average Yields / Costs (Unaudited)
Three Months Ended
------------------
December 31, 2014 September 30, 2014 December 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) $525,286 $2,596 1.98 % $523,853 $2,312 1.77 % $474,968 $2,141 1.80 %
Marketable and
restricted equity
securities (2) 75,188 641 3.40 % 74,035 567 3.05 % 66,990 350 2.08 %
Short-term investments 57,047 29 0.20 % 42,421 15 0.14 % 72,304 39 0.21 %
------ --- ------ --- ------ ---
Total investments 657,521 3,266 1.99 % 640,309 2,894 1.81 % 614,262 2,530 1.65 %
------- ----- ------- ----- ------- -----
Loans and Leases:
Commercial real estate
loans (3) 2,422,804 26,243 4.30 % 2,357,921 25,984 4.37 % 2,165,330 24,816 4.54 %
Commercial loans (3) 562,180 5,944 4.12 % 544,440 5,458 3.94 % 461,656 4,783 4.07 %
Equipment financing (3) 588,886 9,951 6.75 % 563,918 9,664 6.84 % 494,173 7,897 6.36 %
Indirect automobile
loans (3) 334,919 2,587 3.06 % 371,123 2,929 3.13 % 420,456 3,743 3.53 %
Residential mortgage
loans (3) 569,896 5,143 3.58 % 570,505 5,087 3.54 % 516,155 4,794 3.70 %
Other consumer loans
(3) 293,117 2,959 4.00 % 284,206 2,818 3.93 % 264,528 2,738 4.10 %
------- ----- ------- ----- ------- -----
Total loans and leases 4,771,802 52,827 4.39 % 4,692,113 51,940 4.39 % 4,322,298 48,771 4.47 %
--------- ------ --------- ------ --------- ------
Total interest-earning
assets 5,429,323 56,093 4.10 % 5,332,422 54,834 4.08 % 4,936,560 51,301 4.12 %
--------- ------ --------- ------ --------- ------
Allowance for loan and
lease losses (53,542) (52,423) (46,566)
Non-interest-earning
assets 380,910 373,893 397,488
------- ------- -------
Total assets $5,756,691 $5,653,892 $5,287,482
========== ========== ==========
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts $222,410 $45 0.08 % $211,940 $43 0.08 % $207,768 $45 0.09 %
Savings accounts 528,557 292 0.22 % 513,912 299 0.23 % 502,802 312 0.25 %
Money market accounts 1,537,740 1,994 0.51 % 1,534,552 1,957 0.51 % 1,471,402 2,086 0.56 %
Certificates of deposit 915,294 1,989 0.86 % 900,751 1,949 0.86 % 942,595 2,116 0.89 %
------- ----- ------- ----- ------- -----
Total interest-bearing
deposits 3,204,001 4,320 0.54 % 3,161,155 4,248 0.53 % 3,124,567 4,559 0.58 %
--------- ----- --------- ----- --------- -----
Borrowings
Advances from the FHLBB 1,005,585 2,662 1.05 % 1,036,190 2,740 1.05 % 752,854 2,583 1.36 %
Subordinated debentures
and notes 82,743 1,250 6.00 % 21,257 292 5.45 % 9,150 102 4.44 %
Other borrowed funds 33,667 18 0.21 % 25,385 12 0.18 % 31,579 31 0.40 %
------ --- ------ --- ------ ---
Total borrowings 1,121,995 3,930 1.39 % 1,082,832 3,044 1.12 % 793,583 2,716 1.36 %
--------- ----- --------- ----- ------- -----
Total interest-bearing
liabilities 4,325,996 8,250 0.76 % 4,243,987 7,292 0.68 % 3,918,150 7,275 0.74 %
--------- ----- --------- ----- --------- -----
Non-interest-bearing liabilities:
Demand checking
accounts 727,718 725,110 701,163
Other non-interest-
bearing liabilities 58,831 48,236 45,804
------ ------ ------
Total liabilities 5,112,545 5,017,333 4,665,117
Brookline Bancorp, Inc.
stockholders' equity 639,682 632,506 618,385
Noncontrolling interest
in subsidiary 4,464 4,053 3,980
----- ----- -----
Total liabilities and
equity $5,756,691 $5,653,892 $5,287,482
========== ========== ==========
Net interest income (tax-equivalent basis) /Interest-rate
spread (4) 47,843 3.34 % 47,542 3.40 % 44,026 3.38 %
===== ===== =====
Less adjustment of tax-exempt income 267 218 252
--- --- ---
Net interest income $47,576 $47,324 $43,774
======= ======= =======
Net interest margin (5) 3.50 % 3.54 % 3.54 %
===== ===== =====
(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
Average Yields / Costs (Unaudited)
Twelve Months Ended
-------------------
December 31, 2014 December 31, 2013
----------------- -----------------
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) $519,861 $9,531 1.83 % $477,318 $7,983 1.67 %
Marketable and
restricted equity
securities (2) 71,210 2,307 3.24 % 67,375 1,405 2.09 %
Short-term investments 45,560 102 0.22 % 62,258 111 0.18 %
------ --- ------ ---
Total investments 636,631 11,940 1.88 % 606,951 9,499 1.57 %
------- ------ ------- -----
Loans and Leases:
Commercial real estate
loans (3) 2,324,934 103,324 4.42 % 2,091,860 98,245 4.67 %
Commercial loans (3) 522,208 21,341 4.04 % 435,184 20,580 4.68 %
Equipment financing (3) 554,240 39,807 7.18 % 452,601 31,076 6.87 %
Indirect automobile
loans (3) 366,217 11,812 3.23 % 475,387 17,355 3.65 %
Residential mortgage
loans (3) 551,481 19,957 3.62 % 511,348 19,926 3.90 %
Other consumer loans
(3) 280,663 11,189 3.98 % 263,955 10,624 4.02 %
------- ------ ------- ------
Total loans and leases 4,599,743 207,430 4.49 % 4,230,335 197,806 4.66 %
--------- ------- --------- -------
Total interest-earning
assets 5,236,374 219,370 4.17 % 4,837,286 207,305 4.27 %
--------- ------- --------- -------
Allowance for loan and
lease losses (51,480) (44,008)
Non-interest-earning
assets 370,500 380,724
------- -------
Total assets $5,555,394 $5,174,002
========== ==========
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts $212,402 $171 0.08 % $198,050 $173 0.09 %
Savings accounts 518,741 1,197 0.23 % 509,436 1,288 0.25 %
Money market accounts 1,526,915 7,846 0.51 % 1,370,195 8,220 0.60 %
Certificates of deposit 911,072 7,846 0.86 % 971,044 9,092 0.94 %
------- ----- ------- -----
Total interest-bearing
deposits 3,169,130 17,060 0.54 % 3,048,725 18,773 0.62 %
--------- ------ --------- ------
Borrowings
Advances from the FHLBB 935,400 10,535 1.13 % 759,640 10,886 1.43 %
Subordinated debentures
and notes 30,766 1,740 5.66 % 9,548 439 4.60 %
Other borrowed funds 28,568 79 0.28 % 38,819 68 0.18 %
------ --- ------ ---
Total borrowings 994,734 12,354 1.24 % 808,007 11,393 1.41 %
------- ------ ------- ------
Total interest-bearing
liabilities 4,163,864 29,414 0.71 % 3,856,732 30,166 0.78 %
--------- ------ --------- ------
Non-interest-bearing liabilities:
Demand checking
accounts 708,790 656,724
Other non-interest-
bearing liabilities 48,378 40,574
------ ------
Total liabilities 4,921,032 4,554,030
Brookline Bancorp, Inc.
stockholders' equity 630,136 616,243
Noncontrolling interest
in subsidiary 4,226 3,729
----- -----
Total liabilities and
equity $5,555,394 $5,174,002
========== ==========
Net interest income (tax-equivalent basis) /Interest-rate
spread (4) 189,956 3.46 % 177,139 3.49 %
===== =====
Less adjustment of tax-exempt income 888 921
--- ---
Net interest income $189,068 $176,218
======== ========
Net interest margin (5) 3.61 % 3.64 %
===== =====
(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)
At and for the Three Months Ended
---------------------------------
December 31, September 30, June 30, 2014 March 31, 2013 December 31,
2014 2014 2013
---- ---- ----
(Dollars in Thousands)
Net income, as reported $10,786 $11,581 $9,976 $10,422 $7,654
======= ======= ====== ======= ======
Average total assets $5,756,691 $5,653,892 $5,473,450 $5,361,717 $5,287,482
Less: Average goodwill
and average identified
intangible assets, net 151,932 152,755 153,577 154,447 155,439
Average tangible assets $5,604,759 $5,501,137 $5,319,873 $5,207,270 $5,132,043
========== ========== ========== ========== ==========
Return on average
tangible assets
(annualized) 0.77 % 0.84 % 0.75 % 0.80 % 0.60 %
Average total
stockholders' equity $639,682 $632,506 $626,371 $621,764 $618,385
Less: Average goodwill
and average identified
intangible assets, net 151,932 152,755 153,577 154,447 155,439
Average tangible
stockholders' equity $487,750 $479,751 $472,794 $467,317 $462,946
======== ======== ======== ======== ========
Return on average
tangible stockholders'
equity (annualized) 8.85 % 9.66 % 8.44 % 8.92 % 6.61 %
Brookline Bancorp, Inc.
stockholders' equity $640,750 $632,400 $627,663 $620,799 $613,867
Less:
Goodwill 137,890 137,890 137,890 137,890 137,890
Identified intangible
assets, net 13,544 14,371 15,199 16,026 16,887
------ ------ ------ ------ ------
Tangible stockholders'
equity $489,316 $480,139 $474,574 $466,883 $459,090
======== ======== ======== ======== ========
Total assets $5,799,880 $5,717,965 $5,587,486 $5,418,785 $5,325,106
Less:
Goodwill 137,890 137,890 137,890 137,890 137,890
Identified intangible
assets, net 13,544 14,371 15,199 16,026 16,887
------ ------ ------ ------ ------
Tangible assets $5,648,446 $5,565,704 $5,434,397 $5,264,869 $5,170,329
========== ========== ========== ========== ==========
Tangible stockholders'
equity to tangible
assets 8.66 % 8.63 % 8.73 % 8.87 % 8.88 %
Tangible stockholders'
equity $489,316 $480,139 $474,574 $466,883 $459,090
======== ======== ======== ======== ========
Number of common shares
issued 75,744,445 75,744,445 75,744,445 75,744,445 75,744,445
Less:
Treasury shares 5,040,571 5,035,956 5,144,807 5,171,985 5,171,985
Unallocated ESOP shares 251,382 261,453 271,524 281,595 291,666
Unvested restricted
shares 419,702 427,952 434,459 408,651 409,068
------- ------- ------- ------- -------
Number of common shares
outstanding 70,032,790 70,019,084 69,893,655 69,882,214 69,871,726
========== ========== ========== ========== ==========
Tangible book value per
common share $6.99 $6.86 $6.79 $6.68 $6.57
Allowance for loan and
lease losses $53,659 $52,822 $51,686 $50,224 $48,473
Less:
Allowance for acquired
loans and leases
losses 2,876 1,933 1,247 1,403 1,629
----- ----- ----- ----- -----
Allowance for
originated loan and
lease losses $50,783 $50,889 $50,439 $48,821 $46,844
======= ======= ======= ======= =======
Total loans and leases $4,822,607 $4,736,028 $4,603,913 $4,461,997 $4,362,465
Less:
Total acquired loans
and leases 586,540 709,404 747,106 779,747 815,412
------- ------- ------- ------- -------
Total originated loans
and leases $4,236,067 $4,026,624 $3,856,807 $3,682,250 $3,547,053
========== ========== ========== ========== ==========
Allowance for loan and
lease losses related
to originated loans
and leases as a
percentage of
originated loans and
leases 1.20 % 1.26 % 1.31 % 1.33 % 1.32 %
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SOURCE Brookline Bancorp, Inc.
