BROOKLINE BANCORP, INC. BOSTON, Oct. 21, 2015 /PRNewswire/ -- Brookline Bancorp, Inc. (NASDAQ: BRKL) (the "Company") today announced net income of $12.9 million, or $0.18 per basic and diluted share, for the third quarter of 2015, compared to $11.9 million, or $0.17 per basic and diluted share, for the second quarter of 2015.
Paul Perrault, President and Chief Executive Officer of the Company, stated: "We are pleased to report another strong quarter to our stockholders. The Company continues to have broad-based loan growth, solid returns and strong asset quality. Brookline Bancorp continues to execute on its strategy of high performance for both customers and stockholders."
BALANCE SHEET
Total assets of $5.8 billion at September 30, 2015 increased $56.6 million from June 30, 2015, and increased $38.6 million from December 31, 2014. The increase in total assets of 3.9 percent on an annualized basis during the third quarter of 2015 was primarily driven by increases in loans and leases, partly offset by decreases in cash and cash equivalents. The Company completed its effort to deploy excess liquidity generated by the sale of indirect automobile loans in March 2015. At September 30, 2015, total loans and leases were $4.8 billion, representing an increase of $99.6 million from June 30, 2015, and an increase of $6.5 million from December 31, 2014. During the third quarter of 2015, total loans and leases grew 8.4 percent on an annualized basis. Strong loan growth continued in the total commercial real estate and commercial loan and lease portfolios, which increased $90.4 million during the third quarter of 2015, or 9.5 percent on an annualized basis.
Cash, cash equivalents, and investment securities at September 30, 2015 decreased $46.0 million to $636.9 million, or 10.9 percent of total assets, as compared to $682.9 million, or 11.8 percent of total assets at June 30, 2015, and increased $22.9 million from $614.0 million, or 10.6 percent of total assets at December 31, 2014. The decrease during the third quarter of 2015 was primarily driven by the funding of loans.
Total deposits of $4.1 billion at September 30, 2015 increased $15.2 million from June 30, 2015 and increased $186.5 million from December 31, 2014. The increase during the third quarter of 2015 was primarily driven by an increase of $21.5 million in certificate of deposit accounts. Core deposits, which consist of demand checking, NOW, savings, and money market accounts, decreased slightly in the third quarter of 2015. The core deposit ratio also decreased slightly to 74.3 percent at September 30, 2015 from 74.7 percent at June 30, 2015 and from 76.1 percent at December 31, 2014. The average cost of deposits remained constant at 0.51 percent at September 30, 2015 and June 30, 2015.
Total borrowings at September 30, 2015 were $960.2 million, an increase of $22.6 million as compared to June 30, 2015. Total borrowings decreased $166.2 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 11.36 percent at September 30, 2015, as compared to 11.30 percent at June 30, 2015 and 11.06% percent at December 31, 2014. The ratio of tangible stockholders' equity to tangible assets was 9.04 percent at September 30, 2015, as compared to 8.94 percent at June 30, 2015 and 8.68% percent at December 31, 2014.
NET INTEREST INCOME
Net interest income increased $1.4 million to $48.6 million during the third quarter of 2015 from the previous quarter. The net interest margin increased 5 basis points to 3.54 percent for the three months ended September 30, 2015. The increase in net interest income is a result of increased interest income from higher loan balances and an increase in dividend income from restricted equity securities.
PROVISION FOR LOAN AND LEASE LOSSES
The Company recorded a provision for loan and lease losses of $1.7 million for the quarter ended September 30, 2015, compared to $1.8 million from the previous quarter.
Net charge-offs increased $1.1 million to $1.6 million for the third quarter of 2015 from $0.5 million for the second quarter of 2015. The ratio of net charge-offs to average loans on an annualized basis increased to 13 basis points for the third quarter of 2015 from 4 basis points for the second quarter of 2015. The charge-offs on two relationships, both of which had specific reserves recorded in a prior period, contributed to the increase in net charge-offs for the third quarter.
The allowance for loan and lease losses represented 1.17 percent of total loans and leases at September 30, 2015, compared to 1.19 percent at June 30, 2015, and 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 1.25 percent at September 30, 2015, compared to 1.27 percent at June 30, 2015 and 1.20 percent at December 31, 2014.
NON-INTEREST INCOME
Non-interest income of $4.8 million for the quarter ended September 30, 2015 remained consistent with the previous quarter.
NON-INTEREST EXPENSE
Non-interest expense for the quarter ended September 30, 2015 increased $0.8 million to $31.3 million from $30.5 million for the previous quarter.
PROVISION FOR INCOME TAXES
The effective tax rate decreased by 2.3 percentage points, from 36.2 percent for the quarter ended June 30, 2015 to 33.9 percent for the quarter ended September 30, 2015. The effective tax rate was 35.5 percent for the nine months ended September 30, 2015.
RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY
The return on average assets increased during the third quarter of 2015 to 0.89 percent at September 30, 2015 from 0.82 percent for the second quarter of 2015. The return on average tangible assets increased to 0.91 percent for the third quarter of 2015 from 0.85 percent for the second quarter of 2015.
The return on average stockholders' equity increased during the third quarter of 2015 to 7.81 percent from 7.24 percent for the second quarter of 2015. The return on average tangible stockholders' equity increased to 10.11 percent for the third quarter of 2015 from 9.40 percent for the second quarter of 2015.
ASSET QUALITY
Nonperforming loans and leases decreased $3.7 million during the third quarter of 2015 to $19.7 million at September 30, 2015 from the previous quarter. The ratio of nonperforming loans and leases to total loans and leases decreased to 0.41 percent at September 30, 2015 from the previous quarter. Nonperforming assets also decreased $4.8 million during the third quarter of 2015 to $21.0 million, or 0.36 percent of total assets, at September 30, 2015.
DIVIDEND DECLARED
The Company's Board of Directors approved a dividend of $0.09 per share. The dividend will be paid on November 20, 2015 to stockholders of record on November 6, 2015.
CONFERENCE CALL
The Company will conduct a conference call/webcast at 1:30 PM Eastern Standard Time on Thursday, October 22, 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 10073581. 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, 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
---------------------------------
September 30, June 30, March 31, December 31, September 30,
2015 2015 2015 2014 2014
---- ---- ---- ---- ----
(Dollars In Thousands Except Share Data)
Earnings Data:
Net interest income $48,587 $47,172 $48,528 $47,576 $47,324
Provision for credit losses 1,755 1,913 2,263 1,724 2,034
Non-interest income* 4,784 4,867 4,470 4,541 6,189
Non-interest expense 31,270 30,452 31,326 32,455 31,914
Income before provision for income taxes* 20,346 19,674 19,409 17,938 19,565
Net income attributable to Brookline Bancorp, Inc.* 12,888 11,865 11,703 10,875 11,740
Performance Ratios:
Net interest margin (1) 3.54% 3.49% 3.57% 3.49% 3.53%
Interest-rate spread (1) 3.41% 3.32% 3.36% 3.37% 3.43%
Return on average assets* 0.89% 0.82% 0.80% 0.76% 0.83%
Return on average tangible assets (non-GAAP)* 0.91% 0.85% 0.82% 0.78% 0.85%
Return on average stockholders' equity* 7.81% 7.24% 7.22% 6.79% 7.41%
Return on average tangible stockholders' equity (non-GAAP)* 10.11% 9.40% 9.41% 8.90% 9.77%
Efficiency ratio* 58.59% 58.52% 59.11% 62.27% 59.64%
Per Common Share Data:
Net income - Basic* $0.18 $0.17 $0.17 $0.16 $0.17
Net income - Diluted* 0.18 0.17 0.17 0.16 0.17
Cash dividends declared 0.090 0.090 0.085 0.085 0.085
Book value per share (end of period)* 9.45 9.33 9.30 9.16 9.05
Tangible book value per share (end of period) (non-GAAP)* 7.33 7.19 7.15 7.00 6.87
Stock price (end of period) 10.14 11.29 10.05 10.03 8.55
Balance Sheet:
Total assets* $5,839,529 $5,782,934 $5,755,146 $5,800,948 $5,718,944
Total loans and leases 4,829,152 4,729,581 4,634,594 4,822,607 4,736,028
Total deposits 4,144,577 4,129,408 4,114,795 3,958,106 3,889,204
Brookline Bancorp, Inc. stockholders' equity* 663,468 653,516 651,319 641,818 633,379
Asset Quality:
Nonperforming assets $21,025 $25,874 $24,757 $15,170 $19,785
Nonperforming assets as a percentage of total assets* 0.36% 0.45% 0.43% 0.26% 0.35%
Allowance for loan and lease losses $56,472 $56,398 $55,106 $53,659 $52,822
Allowance for loan and lease losses as a percentage of total loans and leases 1.17% 1.19% 1.19% 1.11% 1.12%
Net loan and lease charge-offs $1,599 $501 $854 $874 $793
Net loan and lease charge-offs as a percentage of average loans and leases (annualized) 0.13% 0.04% 0.07% 0.07% 0.07%
Capital Ratios:
Stockholders' equity to total assets* 11.36% 11.30% 11.32% 11.06% 11.08%
Tangible stockholders' equity to tangible assets (non-GAAP)* 9.04% 8.94% 8.93% 8.68% 8.64%
(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)
September 30, June 30, March 31, December 31, September 30,
2015 2015 2015 2014 2014
---- ---- ---- ---- ----
ASSETS (In Thousands Except Share Data)
Cash and due from banks $27,299 $43,363 $35,118 $36,893 $37,237
Short-term investments 19,745 48,513 162,003 25,830 50,901
------ ------ ------- ------ ------
Total cash and cash equivalents 47,044 91,876 197,121 62,723 88,138
------ ------ ------- ------ ------
Investment securities available-for-sale 526,764 530,476 565,115 550,761 527,516
Investment securities held-to-maturity 63,097 60,511 500 500 500
------ ------ --- --- ---
Total investment securities 589,861 590,987 565,615 551,261 528,016
------- ------- ------- ------- -------
Loans and leases held-for-sale 10,992 12,482 787 1,537 464
Loans and leases:
Commercial real estate loans:
Commercial real estate mortgage 1,810,550 1,758,281 1,714,140 1,680,082 1,610,592
Multi-family mortgage 614,560 627,571 652,500 639,706 630,852
Construction 138,261 127,506 134,247 148,013 161,279
------- ------- ------- ------- -------
Total commercial real estate loans 2,563,371 2,513,358 2,500,887 2,467,801 2,402,723
--------- --------- --------- --------- ---------
Commercial loans and leases:
Commercial 580,711 578,548 560,344 514,077 495,712
Equipment financing 684,331 648,447 614,301 601,424 576,541
Condominium association 57,562 55,185 52,707 51,593 49,600
------ ------ ------ ------ ------
Total commercial loans and leases 1,322,604 1,282,180 1,227,352 1,167,094 1,121,853
--------- --------- --------- --------- ---------
Indirect automobile loans 16,294 19,377 23,335 316,987 353,263
------ ------ ------ ------- -------
Consumer loans:
Residential mortgage 606,063 603,073 578,994 571,920 570,128
Home equity 308,371 299,396 292,198 287,058 274,762
Other consumer 12,449 12,197 11,828 11,747 13,299
------ ------ ------ ------ ------
Total consumer loans 926,883 914,666 883,020 870,725 858,189
------- ------- ------- ------- -------
Total loans and leases 4,829,152 4,729,581 4,634,594 4,822,607 4,736,028
Allowance for loan and lease losses (56,472) (56,398) (55,106) (53,659) (52,822)
------- ------- ------- ------- -------
Net loans and leases 4,772,680 4,673,183 4,579,488 4,768,948 4,683,206
--------- --------- --------- --------- ---------
Restricted equity securities 75,553 75,553 74,804 74,804 74,804
Premises and equipment, net of accumulated depreciation 77,472 77,892 79,252 80,619 81,479
Deferred tax asset 25,730 28,466 25,834 27,687 29,168
Goodwill 137,890 137,890 137,890 137,890 137,890
Identified intangible assets, net of accumulated amortization 11,357 12,082 12,806 13,544 14,371
Other real estate owned and repossessed assets 1,301 2,412 2,023 1,456 2,463
Other assets* 89,649 80,111 79,526 80,479 78,945
------ ------ ------ ------ ------
Total assets* $5,839,529 $5,782,934 $5,755,146 $5,800,948 $5,718,944
========== ========== ========== ========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest-bearing deposits:
Demand checking accounts $785,210 $783,331 $729,932 $726,118 $705,604
Interest-bearing deposits:
NOW accounts 254,767 247,172 237,200 235,063 220,766
Savings accounts 500,104 532,184 571,030 531,727 532,790
Money market accounts 1,540,104 1,523,798 1,525,053 1,518,490 1,522,612
Certificate of deposit accounts 1,064,392 1,042,923 1,051,580 946,708 907,432
--------- --------- --------- ------- -------
Total interest-bearing deposits 3,359,367 3,346,077 3,384,863 3,231,988 3,183,600
--------- --------- --------- --------- ---------
Total deposits 4,144,577 4,129,408 4,114,795 3,958,106 3,889,204
--------- --------- --------- --------- ---------
Borrowed funds:
Advances from the FHLBB 848,913 823,452 806,491 1,004,026 1,027,211
Subordinated debentures and notes 82,873 82,850 82,806 82,763 82,763
Other borrowed funds 28,434 31,346 35,628 39,615 22,891
------ ------ ------ ------ ------
Total borrowed funds 960,220 937,648 924,925 1,126,404 1,132,865
------- ------- ------- --------- ---------
Mortgagors' escrow accounts 7,996 7,494 8,414 8,501 8,757
Accrued expenses and other liabilities 57,996 49,792 51,046 61,332 50,430
------ ------ ------ ------ ------
Total liabilities 5,170,789 5,124,342 5,099,180 5,154,343 5,081,256
--------- --------- --------- --------- ---------
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 616,252 618,044 617,845 617,475 616,997
Retained earnings, partially restricted* 102,684 96,128 90,589 84,860 79,959
Accumulated other comprehensive income (loss) 1,191 (1,775) 1,747 (1,622) (4,681)
Treasury stock, at cost;
4,861,085 shares, 5,048,525 shares, 5,042,238 shares, 5,040,571 shares, and 5,035,956 shares, respectively (56,202) (58,372) (58,301) (58,282) (58,228)
Unallocated common stock held by the Employee Stock Ownership Plan;
222,645 shares, 232,224 shares, 241,803 shares, 251,382 shares, and 261,453 shares respectively (1,214) (1,266) (1,318) (1,370) (1,425)
------ ------ ------ ------ ------
Total Brookline Bancorp, Inc. stockholders' equity* 663,468 653,516 651,319 641,818 633,379
------- ------- ------- ------- -------
Noncontrolling interest in subsidiary 5,272 5,076 4,647 4,787 4,309
----- ----- ----- ----- -----
Total stockholders' equity* 668,740 658,592 655,966 646,605 637,688
Total liabilities and stockholders' equity* $5,839,529 $5,782,934 $5,755,146 $5,800,948 $5,718,944
========== ========== ========== ========== ==========
(*) 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
------------------
September 30, June 30, March 31, December 31, September 30,
2015 2015 2015 2014 2014
---- ---- ---- ---- ----
(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases $52,725 $51,684 $53,381 $52,637 $51,769
Debt securities 2,866 2,931 2,683 2,596 2,312
Marketable and restricted equity securities 1,079 491 524 564 520
Short-term investments 17 60 21 29 15
--- --- --- --- ---
Total interest and dividend income 56,687 55,166 56,609 55,826 54,616
------ ------ ------ ------ ------
Interest expense:
Deposits 4,326 4,296 4,304 4,320 4,248
Borrowed funds 3,774 3,698 3,777 3,930 3,044
----- ----- ----- ----- -----
Total interest expense 8,100 7,994 8,081 8,250 7,292
----- ----- ----- ----- -----
Net interest income 48,587 47,172 48,528 47,576 47,324
Provision for credit losses 1,755 1,913 2,263 1,724 2,034
----- ----- ----- ----- -----
Net interest income after provision for credit losses 46,832 45,259 46,265 45,852 45,290
------ ------ ------ ------ ------
Non-interest income:
Deposit fees 2,261 2,195 2,066 2,177 2,352
Loan fees 205 271 342 286 227
Loan level derivative income, net 900 941 - 562 322
Gain/(loss) on sales of securities, net - - - 78 -
Gain on sales of loans and leases held-for-sale 446 279 869 368 564
(Loss)/gain on sale/disposals of premises and equipment, net - - - - (2)
Litigation settlement - - - - 1,412
Other 972 1,181 1,193 1,070 1,314
--- ----- ----- ----- -----
Total non-interest income* 4,784 4,867 4,470 4,541 6,189
----- ----- ----- ----- -----
Non-interest expense:
Compensation and employee benefits 17,875 17,085 17,524 18,216 18,258
Occupancy 3,535 3,437 3,472 3,401 3,334
Equipment and data processing 3,600 3,680 4,020 4,102 4,193
Professional services 984 1,163 1,094 1,159 991
FDIC insurance 929 831 867 782 873
Advertising and marketing 878 823 748 872 745
Amortization of identified intangible assets 725 724 738 827 828
Other 2,744 2,709 2,863 3,096 2,692
----- ----- ----- ----- -----
Total non-interest expense 31,270 30,452 31,326 32,455 31,914
------ ------ ------ ------ ------
Income before provision for income taxes* 20,346 19,674 19,409 17,938 19,565
Provision for income taxes* 6,897 7,115 7,104 6,586 7,163
----- ----- ----- ----- -----
Net income before noncontrolling interest in subsidiary* 13,449 12,559 12,305 11,352 12,402
Less net income attributable to noncontrolling interest in subsidiary 561 694 602 477 662
--- --- --- --- ---
Net income attributable to Brookline Bancorp, Inc.* $12,888 $11,865 $11,703 $10,875 $11,740
======= ======= ======= ======= =======
Earnings per common share:*
Basic $0.18 $0.17 $0.17 $0.16 $0.17
Diluted $0.18 $0.17 $0.17 $0.16 $0.17
Weighted average common shares outstanding during the period:
Basic 70,129,056 70,049,829 70,036,090 70,024,495 69,989,909
Diluted 70,240,020 70,215,850 70,164,105 70,130,243 70,088,987
Dividends declared per common share $0.090 $0.090 $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)
Nine Months Ended September 30,
-------------------------------
2015 2014
---- ----
(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases $157,790 $154,144
Debt securities 8,480 6,931
Marketable and
restricted equity
securities 2,094 1,508
Short-term investments 98 73
--- ---
Total interest and
dividend income 168,462 162,656
------- -------
Interest expense:
Deposits 12,926 12,740
Borrowed funds 11,249 8,424
------ -----
Total interest expense 24,175 21,164
------ ------
Net interest income 144,287 141,492
Provision for credit
losses 5,931 6,753
----- -----
Net interest income
after provision for
credit losses 138,356 134,739
------- -------
Non-interest income:
Deposit Fees 6,522 6,515
Loan Fees 818 724
Loan level derivative
income, net 1,841 384
Loss on sales of
securities, net - (13)
Gain on sales of loans
and leases held-for-
sale 1,594 1,283
Gain on sale/
disposals of premises
and equipment, net - 1,502
Other 3,346 5,244
Total non-interest
income* 14,121 15,639
------ ------
Non-interest expense:
Compensation and
employee benefits 52,484 53,585
Occupancy 10,444 10,893
Equipment and data
processing 11,300 12,918
Professional services 3,241 4,198
FDIC insurance 2,627 2,580
Advertising and
marketing 2,449 2,186
Amortization of
identified intangible
assets 2,187 2,516
Other 8,316 7,829
----- -----
Total non-interest
expense 93,048 96,705
------ ------
Income before
provision for income
taxes* 59,429 53,673
Provision for income
taxes* 21,116 19,700
------ ------
Net income before
noncontrolling
interest in
subsidiary* 38,313 33,973
Less net income
attributable to
noncontrolling
interest in
subsidiary 1,857 1,560
----- -----
Net income
attributable to
Brookline Bancorp,
Inc.* $36,456 $32,413
======= =======
Earnings per common share:
Basic $0.52 $0.46
Diluted $0.52 $0.46
Weighted average common shares outstanding during the period:
Basic 70,071,999 69,918,248
Diluted 70,207,983 70,029,383
Dividends declared per
common share $0.265 $0.255
(*) 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
---------------------------------
September 30, June 30, March 31, December 31, September 30,
2015 2015 2015 2014 2014
---- ---- ---- ---- ----
(Dollars in Thousands)
NONPERFORMING ASSETS:
Loans and leases accounted for on a nonaccrual basis:
Commercial real estate mortgage $3,155 $3,174 $3,250 $1,009 $3,174
Multi-family mortgage 309 309 - - 299
Total commercial real estate loans 3,464 3,483 3,250 1,009 3,473
----- ----- ----- ----- -----
Commercial 8,326 12,316 12,039 5,196 6,071
Equipment financing 2,896 2,639 2,321 3,223 2,756
Total commercial loans and leases 11,222 14,955 14,360 8,419 8,827
------ ------ ------ ----- -----
Indirect automobile loans 629 417 468 645 474
Residential mortgage 2,539 2,421 2,632 1,682 2,636
Home equity 1,818 2,144 1,979 1,918 1,865
Other consumer 52 42 45 41 47
--- --- --- --- ---
Total consumer loans 4,409 4,607 4,656 3,641 4,548
----- ----- ----- ----- -----
Total nonaccrual loans and leases 19,724 23,462 22,734 13,714 17,322
------ ------ ------ ------ ------
Other real estate owned 1,149 1,676 1,043 953 1,536
Other repossessed assets 152 736 980 503 927
--- --- --- --- ---
Total nonperforming assets $21,025 $25,874 $24,757 $15,170 $19,785
======= ======= ======= ======= =======
Loans and leases past due greater than 90 days and still accruing $8,792 $10,220 $8,061 $6,008 $3,919
====== ======= ====== ====== ======
Troubled debt restructurings on accrual 17,746 14,205 14,184 14,815 15,174
Troubled debt restructurings on nonaccrual 5,960 5,981 6,126 5,625 5,609
----- ----- ----- ----- -----
Total troubled debt restructurings $23,706 $20,186 $20,310 $20,440 $20,783
======= ======= ======= ======= =======
Nonperforming loans and leases as a percentage of total loans and leases 0.41% 0.50% 0.49% 0.28% 0.37%
Nonperforming assets as a percentage of total assets* 0.36% 0.45% 0.43% 0.26% 0.35%
PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:
Allowance for loan and lease losses at beginning of period $56,398 $55,106 $53,659 $52,822 $51,686
Charge-offs (1,931) (1,029) (1,665) (1,068) (1,136)
Recoveries 332 528 811 194 343
--- --- --- --- ---
Net charge-offs (1,599) (501) (854) (874) (793)
Provision for loan and lease losses 1,673 1,793 2,301 1,711 1,929
----- ----- ----- ----- -----
Allowance for loan and lease losses at end of period $56,472 $56,398 $55,106 $53,659 $52,822
======= ======= ======= ======= =======
Allowance for loan and lease losses as a percentage of total loans and leases 1.17% 1.19% 1.19% 1.11% 1.12%
Allowance for loan and lease losses related to originated loans and leases as a percentage of originated loans and leases
(non-GAAP) 1.25% 1.27% 1.28% 1.20% 1.26%
NET CHARGE-OFFS:
Commercial real estate loans $ - $162 $388 $62 $64
Commercial loans and leases 1,276 151 238 480 348
Indirect automobile loans 117 (13) 239 281 208
Consumer loans 206 201 (11) 51 173
--- --- --- --- ---
Total net charge-offs $1,599 $501 $854 $874 $793
====== ==== ==== ==== ====
Net loan and lease charge-offs as a percentage of average loans and leases (annualized) 0.13% 0.04% 0.07% 0.07% 0.07%
(*) 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
------------------
September 30, 2015 June 30, 2015 September 30, 2014
------------------ ------------- ------------------
Average Interest (1) Average Average Interest (1) Average Average Interest (1) Average
Yield/ Yield/ Yield/
Cost Cost Cost
Balance Balance Balance
------- ------- -------
(Dollars in Thousands)
Assets:
Interest-earning assets:
Investments:
Debt securities (2) $587,804 $2,904 1.98% $591,120 $2,941 1.99% $522,911 $2,312 1.77%
Marketable and restricted equity securities (2) 76,530 1,111 5.81% 76,332 493 2.59% 74,977 521 2.78%
Short-term investments 36,163 17 0.19% 85,737 60 0.28% 42,421 15 0.14%
------ --- ------ --- ------ ---
Total investments 700,497 4,032 2.30% 753,189 3,494 1.86% 640,309 2,848 1.78%
------- ----- ------- ----- ------- -----
Loans and Leases:
Commercial real estate loans (3) 2,531,729 26,739 4.22% 2,505,925 26,391 4.21% 2,357,921 25,984 4.37%
Commercial loans (3) 636,756 6,570 4.05% 639,609 6,394 3.96% 544,440 5,458 3.94%
Equipment financing (3) 664,010 11,300 6.81% 627,032 10,793 6.89% 563,918 9,664 6.84%
Indirect automobile loans (3) 17,872 182 4.05% 21,171 218 4.13% 371,123 2,929 3.13%
Residential mortgage loans (3) 613,678 5,437 3.54% 589,171 5,260 3.57% 570,505 5,087 3.54%
Other consumer loans (3) 315,402 2,707 3.40% 308,932 2,838 3.68% 284,206 2,818 3.93%
------- ----- ------- ----- ------- -----
Total loans and leases 4,779,447 52,935 4.43% 4,691,840 51,894 4.42% 4,692,113 51,940 4.43%
--------- ------ --------- ------ --------- ------
Total interest-earning assets 5,479,944 56,967 4.16% 5,445,029 55,388 4.07% 5,332,422 54,788 4.11%
--------- ------ --------- ------ --------- ------
Allowance for loan and lease losses (56,833) (55,427) (52,423)
Non-interest-earning assets* 367,358 373,018 374,793
------- ------- -------
Total assets* $5,790,469 $5,762,620 $5,654,792
========== ========== ==========
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts $246,163 44 0.07% $248,786 45 0.07% $219,811 43 0.08%
Savings accounts 516,877 257 0.20% 554,618 263 0.19% 513,912 299 0.23%
Money market accounts 1,550,477 1,664 0.43% 1,544,877 1,693 0.44% 1,534,552 1,957 0.51%
Certificates of deposit 1,043,418 2,361 0.90% 1,049,297 2,295 0.88% 900,751 1,949 0.86%
--------- ----- --------- ----- ------- -----
Total interest-bearing deposits 3,356,935 4,326 0.51% 3,397,578 4,296 0.51% 3,169,026 4,248 0.53%
--------- ----- --------- ----- --------- -----
Borrowings
Advances from the FHLBB 801,379 2,495 1.22% 782,434 2,415 1.22% 1,036,190 2,740 1.03%
Subordinated debentures and notes 82,866 1,251 6.04% 82,827 1,250 6.03% 21,257 292 5.49%
Other borrowed funds 32,134 28 0.34% 34,546 33 0.39% 25,385 12 0.18%
------ --- ------ --- ------ ---
Total borrowings 916,379 3,774 1.61% 899,807 3,698 1.63% 1,082,832 3,044 1.10%
------- ----- ------- ----- --------- -----
Total interest-bearing liabilities 4,273,314 8,100 0.75% 4,297,385 7,994 0.75% 4,251,858 7,292 0.68%
--------- ----- --------- ----- --------- -----
Non-interest-bearing liabilities:
Demand checking accounts 793,785 750,827 717,239
Other non-interest-bearing liabilities 58,414 54,352 48,236
------ ------ ------
Total liabilities 5,125,513 5,102,564 5,017,333
Brookline Bancorp, Inc. stockholders' equity* 659,761 655,223 633,406
Noncontrolling interest in subsidiary 5,195 4,833 4,053
----- ----- -----
Total liabilities and equity* $5,790,469 $5,762,620 $5,654,792
========== ========== ==========
Net interest income (tax-equivalent basis) /Interest-rate spread (4) 48,867 3.41% 47,394 3.32% 47,496 3.43%
==== ==== ====
Less adjustment of tax-exempt income 280 222 172
--- --- ---
Net interest income $48,587 $47,172 $47,324
======= ======= =======
Net interest margin (5) 3.54% 3.49% 3.53%
==== ==== ====
(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)
Nine Months Ended
-----------------
September 30, 2015 September 30, 2014
------------------ ------------------
Average Interest (1) Average Average Interest (1) Average
Yield/ Yield/
Cost Cost
Balance Balance
------- -------
(Dollars in Thousands)
Assets:
Interest-earning assets:
Investments:
Debt securities (2) $577,967 $8,529 1.97% $517,091 $6,935 1.79%
Marketable and restricted equity securities (2) 76,218 2,126 3.72% 70,809 1,515 2.85%
Short-term investments 57,197 98 0.23% 41,689 73 0.23%
------ --- ------ ---
Total investments 711,382 10,753 2.02% 629,589 8,523 1.80%
------- ------ ------- -----
Loans and Leases:
Commercial real estate loans (3) 2,504,739 79,375 4.23% 2,291,952 77,081 4.46%
Commercial loans (3) 629,115 19,471 4.09% 507,612 15,397 4.01%
Equipment financing (3) 634,310 32,637 6.86% 543,691 29,856 7.33%
Indirect automobile loans (3) 106,210 2,542 3.20% 376,765 9,225 3.27%
Residential mortgage loans (3) 593,371 16,005 3.60% 545,275 14,814 3.63%
Other consumer loans (3) 307,878 8,373 3.63% 276,466 8,230 3.98%
------- ----- ------- -----
Total loans and leases 4,775,623 158,403 4.42% 4,541,761 154,603 4.54%
--------- ------- --------- -------
Total interest-earning assets 5,487,005 169,156 4.11% 5,171,350 163,126 4.21%
--------- ------- --------- -------
Allowance for loan and lease losses (55,536) (50,785)
Non-interest-earning assets* 370,038 367,824
------- -------
Total assets* $5,801,507 $5,488,389
========== ==========
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts $244,253 132 0.07% $217,168 126 0.08%
Savings accounts 537,606 793 0.20% 515,433 905 0.23%
Money market accounts 1,544,085 5,173 0.45% 1,523,269 5,852 0.51%
Certificates of deposit 1,042,111 6,828 0.88% 909,647 5,857 0.86%
--------- ----- ------- -----
Total interest-bearing deposits 3,368,055 12,926 0.51% 3,165,517 12,740 0.54%
--------- ------ --------- ------
Borrowings
Advances from the FHLBB 841,196 7,414 1.16% 911,748 7,873 1.14%
Subordinated debentures and notes 82,826 3,749 6.03% 13,249 490 4.93%
Other borrowed funds 34,808 86 0.33% 26,849 61 0.30%
------ --- ------ ---
Total borrowings 958,830 11,249 1.55% 951,846 8,424 1.17%
------- ------ ------- -----
Total interest-bearing liabilities 4,326,885 24,175 0.75% 4,117,363 21,164 0.69%
--------- ------ --------- ------
Non-interest-bearing liabilities:
Demand checking accounts 757,811 694,272
Other non-interest-bearing liabilities 57,328 44,858
------ ------
Total liabilities 5,142,024 4,856,493
Brookline Bancorp, Inc. stockholders' equity* 654,596 627,750
Noncontrolling interest in subsidiary 4,887 4,146
----- -----
Total liabilities and equity* $5,801,507 $5,488,389
========== ==========
Net interest income (tax-equivalent basis) /Interest-rate spread (4) 144,981 3.36% 141,962 3.52%
==== ====
Less adjustment of tax-exempt income 694 470
--- ---
Net interest income $144,287 $141,492
======== ========
Net interest margin (5) 3.53% 3.67%
==== ====
(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
---------------------------------
September 30, June 30, March 31, December 31, September 30,
2015 2015 2015 2014 2014
---- ---- ---- ---- ----
(Dollars in Thousands)
Net income, as reported* $12,888 $11,865 $11,703 $10,875 $11,740
======= ======= ======= ======= =======
Average total assets* $5,790,469 $5,762,620 $5,852,114 $5,757,715 $5,654,792
Less: Average goodwill and average identified intangible assets, net 149,669 150,385 151,125 151,932 152,755
Average tangible assets* $5,640,800 $5,612,235 $5,700,989 $5,605,783 $5,502,037
========== ========== ========== ========== ==========
Return on average tangible assets (annualized)* 0.91% 0.85% 0.82% 0.78% 0.85%
Average total stockholders' equity* $659,761 $655,223 $648,683 $640,706 $633,406
Less: Average goodwill and average identified intangible assets, net 149,669 150,385 151,125 151,932 152,755
Average tangible stockholders' equity* $510,092 $504,838 $497,558 $488,774 $480,651
======== ======== ======== ======== ========
Return on average tangible stockholders' equity (annualized)* 10.11% 9.40% 9.41% 8.90% 9.77%
Brookline Bancorp, Inc. stockholders' equity* $663,468 $653,516 $651,319 $641,818 $633,379
Less:
Goodwill 137,890 137,890 137,890 137,890 137,890
Identified intangible assets, net 11,357 12,082 12,806 13,544 14,371
------ ------ ------ ------ ------
Tangible stockholders' equity* $514,221 $503,544 $500,623 $490,384 $481,118
======== ======== ======== ======== ========
Total assets* $5,839,529 $5,782,934 $5,755,146 $5,800,948 $5,718,944
Less:
Goodwill 137,890 137,890 137,890 137,890 137,890
Identified intangible assets, net 11,357 12,082 12,806 13,544 14,371
------ ------ ------ ------ ------
Tangible assets* $5,690,282 $5,632,962 $5,604,450 $5,649,514 $5,566,683
========== ========== ========== ========== ==========
Tangible stockholders' equity to tangible assets* 9.04% 8.94% 8.93% 8.68% 8.64%
Tangible stockholders' equity* $514,221 $503,544 $500,623 $490,384 $481,118
======== ======== ======== ======== ========
Number of common shares issued 75,744,445 75,744,445 75,744,445 75,744,445 75,744,445
Less:
Treasury shares 4,861,085 5,048,525 5,042,238 5,040,571 5,035,956
Unallocated ESOP shares 222,645 232,224 241,803 251,382 261,453
Unvested restricted shares 486,999 406,566 418,035 419,702 427,952
------- ------- ------- ------- -------
Number of common shares outstanding 70,173,716 70,057,130 70,042,369 70,032,790 70,019,084
========== ========== ========== ========== ==========
Tangible book value per common share* $7.33 $7.19 $7.15 $7.00 $6.87
Allowance for loan and lease losses $56,472 $56,398 $55,106 $53,659 $52,822
Less:
Allowance for acquired loans and leases losses 2,048 2,655 2,911 2,848 1,933
----- ----- ----- ----- -----
Allowance for originated loan and lease losses $54,424 $53,743 $52,195 $50,811 $50,889
======= ======= ======= ======= =======
Total loans and leases $4,829,152 $4,729,581 $4,634,594 $4,822,607 $4,736,028
Less:
Total acquired loans and leases 457,922 509,028 561,103 590,654 709,404
------- ------- ------- ------- -------
Total originated loans and leases $4,371,230 $4,220,553 $4,073,491 $4,231,953 $4,026,624
========== ========== ========== ========== ==========
Allowance for loan and lease losses related to originated loans and leases as a percentage of originated loans and leases 1.25% 1.27% 1.28% 1.20% 1.26%
(*) 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.
