BROOKLINE BANCORP, INC. BOSTON, April 20, 2016 /PRNewswire/ -- Brookline Bancorp, Inc. (NASDAQ: BRKL) (the "Company") today announced net income of $12.8 million, or $0.18 per basic and diluted share, for the first quarter of 2016, compared to $11.7 million, or $0.17 per basic and diluted share, for the first quarter of 2015.
Paul Perrault, President and Chief Executive Officer of the Company, stated: "I am pleased to report another good quarter in all areas of the Company. Most notably, we experienced solid growth in loans, deposits and revenues while holding expense levels. Our asset quality remains strong and the Company continues to be well-capitalized. We look forward to the rest of the year with confidence."
BALANCE SHEET
Total assets at March 31, 2016 increased $138.7 million to $6.2 billion from $6.0 billion at December 31, 2015, and increased $425.9 million from $5.8 billion at March 31, 2015. The increase in total assets of 9.2 percent on an annualized basis during the first quarter of 2016 was primarily driven by increases in loans and leases. At March 31, 2016, total loans and leases were $5.1 billion, representing an increase of $134.9 million from December 31, 2015, and an increase of $495.9 million from March 31, 2015. During the first quarter of 2016, total loans and leases grew 10.8 percent on an annualized basis. Strong loan growth continued in the commercial real estate and commercial loan and lease portfolios, which increased $126.3 million during the first quarter of 2016, or 12.5 percent on an annualized basis.
Investment securities at March 31, 2016 increased $12.6 million to $619.6 million, or 10.0 percent of total assets, as compared to $607.0 million, or 10.0 percent of total assets, at December 31, 2015, and increased approximately $54.0 million from $565.6 million, or 9.8 percent of total assets, at March 31, 2015.
Total deposits at March 31, 2016 increased $87.4 million to $4.4 billion from $4.3 billion at December 31, 2015 and increased $278.7 million from $4.1 billion at March 31, 2015. Core deposits, which consist of demand checking, NOW, savings, and money market accounts, increased $67.2 million from December 31, 2015 and increased $222.1 million from March 31, 2015. Core deposits as a percentage of total deposits also increased slightly to 74.8 percent at March 31, 2016 from 74.7 percent at December 31, 2015 and increased from 74.4 percent at March 31, 2015. The average cost of interest bearing deposits increased slightly to 0.54 percent for the three months ended March 31, 2016 from 0.52 percent for the three months ended December 31, 2015.
Total borrowings at March 31, 2016 increased $45.3 million to $1.0 billion from $983.0 million at December 31, 2015 and increased $103.4 million from $924.9 million at March 31, 2015.
The ratio of stockholders' equity to total assets was 11.01 percent at March 31, 2016, as compared to 11.05 percent at December 31, 2015, and 11.32 percent at March 31, 2015, respectively. The ratio of tangible stockholders' equity to tangible assets was 8.83 percent at March 31, 2016, as compared to 8.81 percent at December 31, 2015, and 8.93 percent at March 31, 2015.
NET INTEREST INCOME
Net interest income decreased $0.9 million to $49.2 million during the first quarter of 2016 from the previous quarter and the net interest margin decreased 9 basis points to 3.45 percent. The prior quarter included the accelerated recognition of $1.0 million related to the prepayment of several acquired loans which contributed to the decline in net interest income for the quarter.
PROVISION FOR LOAN AND LEASE LOSSES
The Company recorded a provision for loan and lease losses of $2.3 million for the quarter ended March 31, 2016, compared to $1.7 million for the quarter ended December 31, 2015. The increase of $0.6 million quarter over quarter was primarily driven by the solid loan growth in the quarter.
Net charge-offs decreased $1.0 million to $0.4 million for the first quarter of 2016 from $1.4 million for the fourth quarter of 2015. The ratio of net charge-offs to average loans on an annualized basis decreased to 3 basis points for the first quarter of 2016 from 11 basis points for the fourth quarter of 2015.
The allowance for loan and lease losses represented 1.14 percent of total loans and leases at March 31, 2016, compared to 1.14 percent at December 31, 2015, and 1.19 percent at March 31, 2015. The allowance for loan and lease losses related to originated loans and leases as a percentage of originated loans and leases was 1.20 percent at March 31, 2016, compared to 1.20 percent at December 31, 2015, and 1.28 percent at March 31, 2015.
NON-INTEREST INCOME
Non-interest income for the quarter ended March 31, 2016 increased $0.4 million to $6.5 million from $6.1 million for the previous quarter. The increase was primarily driven by an increase of $0.3 million in gain on sales of loans and leases held-for-sale and an increase of $0.1 million due to loan level derivative mark to market adjustments recorded in other income.
NON-INTEREST EXPENSE
Non-interest expense for the quarter ended March 31, 2016 decreased $0.3 million to $32.1 million from $32.3 million for the quarter ended December 31, 2015. The Company's efficiency ratio improved to 57.57% at March 31, 2016, compared with 59.11% at March 31, 2015.
PROVISION FOR INCOME TAXES
The effective tax rate was 35.8 percent and 36.6 percent for the three months ended March 31, 2016 and March 31, 2015, respectively. The decrease in the effective tax rate was primarily driven by investments in municipal bonds and changes in state tax laws.
RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY
The return on average assets increased during the first quarter of 2016 to 0.84 percent at March 31, 2016 from 0.80 percent at March 31, 2015. The return on average tangible assets increased to 0.86 percent for the first quarter of 2016 from 0.82 percent for the first quarter of 2015.
The return on average stockholders' equity increased during the first quarter of 2016 to 7.57 percent from 7.22 percent for the first quarter of 2015. The return on average tangible stockholders' equity increased to 9.69 percent for the first quarter of 2016 from 9.41 percent for the first quarter of 2015.
ASSET QUALITY
The ratio of nonperforming loans and leases to total loans and leases was 0.62 percent at March 31, 2016 as nonperforming loans and leases increased $12.6 million to $31.9 million at December 31, 2015, a majority of which related to the restructure of taxi medallion loans during the quarter. Nonperforming assets increased $11.8 million to $32.5 million or 0.53 percent of total assets at March 31, 2016.
DIVIDEND DECLARED
The Company's Board of Directors approved a dividend of $0.09 per share for the quarter ended March 31, 2016. The dividend will be paid on May 20, 2016 to stockholders of record on May 6, 2016.
CONFERENCE CALL
The Company will conduct a conference call/webcast at 1:30 PM Eastern Standard Time on Thursday, April 21, 2016 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 10083828. 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 $6.2 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 "banks"). The Company provides commercial and retail banking services, 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
(617) 425-5331
ccarlson@brkl.com
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Selected Financial Highlights (Unaudited)
At and for the Three Months Ended
---------------------------------
March 31, 2016 December 31, 2015 September 30, 2015 June 30, 2015 March 31, 2015
-------------- ----------------- ------------------ ------------- --------------
(Dollars In Thousands Except per Share Data)
Earnings Data:
Net interest income $49,203 $50,078 $48,587 $47,172 $48,528
Provision for credit
losses 2,378 1,520 1,755 1,913 2,263
Non-interest income 6,469 6,063 4,784 4,867 4,470
Non-interest expense 32,053 32,329 31,270 30,452 31,326
Income before provision
for income taxes 21,241 22,292 20,346 19,674 19,409
Net income attributable
to Brookline Bancorp,
Inc. 12,812 13,327 12,888 11,865 11,703
Performance Ratios:
Net interest margin (1) 3.45 % 3.54 % 3.54 % 3.49 % 3.57 %
Interest-rate spread (1) 3.26 % 3.42 % 3.41 % 3.32 % 3.37 %
Return on average assets 0.84 % 0.89 % 0.89 % 0.82 % 0.80 %
Return on average
tangible assets (non-
GAAP) 0.86 % 0.92 % 0.91 % 0.85 % 0.82 %
Return on average
stockholders' equity 7.57 % 7.99 % 7.81 % 7.24 % 7.22 %
Return on average
tangible stockholders'
equity (non-GAAP) 9.69 % 10.28 % 10.11 % 9.40 % 9.41 %
Efficiency ratio (2) 57.57 % 57.59 % 58.59 % 58.52 % 59.11 %
Per Common Share Data:
Net income - Basic $0.18 $0.19 $0.18 $0.17 $0.17
Net income - Diluted 0.18 0.19 0.18 0.17 0.17
Cash dividends declared 0.090 0.090 0.090 0.090 0.085
Book value per share (end
of period) 9.69 9.51 9.45 9.33 9.30
Tangible book value per
share (end of period)
(non-GAAP) 7.59 7.39 7.33 7.19 7.15
Stock price (end of
period) 11.01 11.50 10.14 11.29 10.05
Balance Sheet:
Total assets $6,181,030 $6,042,338 $5,839,529 $5,782,934 $5,755,146
Total loans and leases 5,130,445 4,995,540 4,829,152 4,729,581 4,634,594
Total deposits 4,393,456 4,306,018 4,144,577 4,129,408 4,114,795
Brookline Bancorp, Inc.
stockholders' equity 680,417 667,485 663,468 653,516 651,319
Asset Quality:
Nonperforming assets $32,470 $20,676 $21,025 $25,874 $24,757
Nonperforming assets as a
percentage of total
assets 0.53 % 0.34 % 0.36 % 0.45 % 0.43 %
Allowance for loan and
lease losses $58,606 $56,739 $56,472 $56,398 $55,106
Allowance for loan and
lease losses as a
percentage of total
loans and leases 1.14 % 1.14 % 1.17 % 1.19 % 1.19 %
Net loan and lease
charge-offs $400 $1,389 $1,599 $501 $854
Net loan and lease
charge-offs as a
percentage of average
loans and leases
(annualized) 0.03 % 0.11 % 0.13 % 0.04 % 0.07 %
Capital Ratios:
Stockholders' equity to
total assets 11.01 % 11.05 % 11.36 % 11.30 % 11.32 %
Tangible stockholders'
equity to tangible
assets (non-GAAP) 8.83 % 8.81 % 9.04 % 8.94 % 8.93 %
(1) Calculated on a fully tax-equivalent basis.
(2) Calculated as non-interest expense as a percentage of net interest income plus non-interest income.
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets (Unaudited)
March 31, 2016 December 31, 2015 September 30, 2015 June 30, 2015 March 31, 2015
-------------- ----------------- ------------------ ------------- --------------
ASSETS (In Thousands Except Share Data)
Cash and due from banks $31,127 $28,753 $27,299 $43,363 $35,118
Short-term investments 42,795 46,736 19,745 48,513 162,003
------ ------ ------ ------ -------
Total cash and cash equivalents 73,922 75,489 47,044 91,876 197,121
------ ------ ------ ------ -------
Investment securities available-
for-sale 536,182 513,201 526,764 530,476 565,115
Investment securities held-to-
maturity 83,409 93,757 63,097 60,511 500
------ ------ ------ ------ ---
Total investment securities 619,591 606,958 589,861 590,987 565,615
------- ------- ------- ------- -------
Loans and leases held-for-sale 3,190 13,383 10,992 12,482 787
Loans and leases:
Commercial real estate loans:
Commercial real estate mortgage 1,958,057 1,875,592 1,810,550 1,758,281 1,714,140
Multi-family mortgage 682,317 658,480 614,560 627,571 652,500
Construction 126,024 130,322 138,261 127,506 134,247
------- ------- ------- ------- -------
Total commercial real estate
loans 2,766,398 2,664,394 2,563,371 2,513,358 2,500,887
--------- --------- --------- --------- ---------
Commercial loans and leases:
Commercial 616,290 592,531 580,711 578,548 560,344
Equipment financing 721,621 721,890 684,331 648,447 614,301
Condominium association 60,728 59,875 57,562 55,185 52,707
------ ------ ------ ------ ------
Total commercial loans and leases 1,398,639 1,374,296 1,322,604 1,282,180 1,227,352
--------- --------- --------- --------- ---------
Indirect automobile loans 11,220 13,678 16,294 19,377 23,335
------ ------ ------ ------ ------
Consumer loans:
Residential mortgage 617,501 616,449 606,063 603,073 578,994
Home equity 318,859 314,553 308,371 299,396 292,198
Other consumer 17,828 12,170 12,449 12,197 11,828
------ ------ ------ ------ ------
Total consumer loans 954,188 943,172 926,883 914,666 883,020
------- ------- ------- ------- -------
Total loans and leases 5,130,445 4,995,540 4,829,152 4,729,581 4,634,594
Allowance for loan and lease
losses (58,606) (56,739) (56,472) (56,398) (55,106)
------- ------- ------- ------- -------
Net loans and leases 5,071,839 4,938,801 4,772,680 4,673,183 4,579,488
--------- --------- --------- --------- ---------
Restricted equity securities 65,438 66,117 75,553 75,553 74,804
Premises and equipment, net of
accumulated depreciation 77,128 78,156 77,472 77,892 79,252
Deferred tax asset 24,181 26,817 25,730 28,466 25,834
Goodwill 137,890 137,890 137,890 137,890 137,890
Identified intangible assets, net
of accumulated amortization 9,998 10,633 11,357 12,082 12,806
Other real estate owned and
repossessed assets 565 1,343 1,301 2,412 2,023
Other assets 97,288 86,751 89,649 80,111 79,526
------ ------ ------ ------ ------
Total assets $6,181,030 $6,042,338 $5,839,529 $5,782,934 $5,755,146
========== ========== ========== ========== ==========
LIABILITIES AND STOCKHOLDERS'
EQUITY
Deposits:
Non-interest-bearing deposits:
Demand checking accounts $793,195 $799,117 $785,210 $783,331 $729,932
Interest-bearing deposits:
NOW accounts 286,920 283,972 254,767 247,172 237,200
Savings accounts 555,843 540,788 500,104 532,184 571,030
Money market accounts 1,649,348 1,594,269 1,540,104 1,523,798 1,525,053
Certificate of deposit accounts 1,108,150 1,087,872 1,064,392 1,042,923 1,051,580
--------- --------- --------- --------- ---------
Total interest-bearing deposits 3,600,261 3,506,901 3,359,367 3,346,077 3,384,863
--------- --------- --------- --------- ---------
Total deposits 4,393,456 4,306,018 4,144,577 4,129,408 4,114,795
--------- --------- --------- --------- ---------
Borrowed funds:
Advances from the FHLBB 905,953 861,866 848,913 823,452 806,491
Subordinated debentures and notes 82,978 82,936 82,873 82,850 82,806
Other borrowed funds 39,378 38,227 28,434 31,346 35,628
------ ------ ------ ------ ------
Total borrowed funds 1,028,309 983,029 960,220 937,648 924,925
--------- ------- ------- ------- -------
Mortgagors' escrow accounts 7,905 7,516 7,996 7,494 8,414
Accrued expenses and other
liabilities 64,566 72,289 57,996 49,792 51,046
------ ------ ------ ------ ------
Total liabilities 5,494,236 5,368,852 5,170,789 5,124,342 5,099,180
--------- --------- --------- --------- ---------
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 617,477 616,899 616,252 618,044 617,845
Retained earnings, partially
restricted 116,151 109,675 102,684 96,128 90,589
Accumulated other comprehensive
(loss) income 3,352 (2,476) 1,191 (1,775) 1,747
Treasury stock, at cost;
4,861,554 shares, 4,861,554
shares, 4,861,085 shares,
5,048,525 shares, and 5,042,238
shares, respectively (56,208) (56,208) (56,202) (58,372) (58,301)
Unallocated common stock held by
the Employee Stock Ownership
Plan;
203,973 shares, 213,066 shares,
222,645 shares, 232,224 shares,
and 241,803 shares, respectively (1,112) (1,162) (1,214) (1,266) (1,318)
------ ------ ------ ------ ------
Total Brookline Bancorp, Inc.
stockholders' equity 680,417 667,485 663,468 653,516 651,319
------- ------- ------- ------- -------
Noncontrolling interest in
subsidiary 6,377 6,001 5,272 5,076 4,647
----- ----- ----- ----- -----
Total stockholders' equity 686,794 673,486 668,740 658,592 655,966
-------
Total liabilities and
stockholders' equity $6,181,030 $6,042,338 $5,839,529 $5,782,934 $5,755,146
========== ========== ========== ========== ==========
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
Three Months Ended
------------------
March 31, 2016 December 31, 2015 September 30, 2015 June 30, 2015 March 31, 2015
-------------- ----------------- ------------------ ------------- --------------
(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases $54,247 $54,814 $52,725 $51,684 $53,381
Debt securities 2,932 2,936 2,866 2,931 2,683
Marketable and
restricted equity
securities 680 668 1,079 491 524
Short-term investments 39 30 17 60 21
--- --- --- --- ---
Total interest and
dividend income 57,898 58,448 56,687 55,166 56,609
------ ------ ------ ------ ------
Interest expense:
Deposits 4,745 4,554 4,326 4,296 4,304
Borrowed funds 3,950 3,816 3,774 3,698 3,777
----- ----- ----- ----- -----
Total interest expense 8,695 8,370 8,100 7,994 8,081
----- ----- ----- ----- -----
Net interest income 49,203 50,078 48,587 47,172 48,528
Provision for credit
losses 2,378 1,520 1,755 1,913 2,263
----- ----- ----- ----- -----
Net interest income
after provision for
credit losses 46,825 48,558 46,832 45,259 46,265
------ ------ ------ ------ ------
Non-interest income:
Deposit fees 2,145 2,208 2,261 2,195 2,066
Loan fees 330 364 205 271 342
Loan level derivative
income, net 1,629 1,556 900 941 -
Gain on sales of loans
and leases held-for-
sale 905 614 446 279 869
Other 1,460 1,321 972 1,181 1,193
----- ----- --- ----- -----
Total non-interest
income 6,469 6,063 4,784 4,867 4,470
----- ----- ----- ----- -----
Non-interest expense:
Compensation and
employee benefits 18,727 18,788 17,875 17,085 17,524
Occupancy 3,526 3,482 3,535 3,437 3,472
Equipment and data
processing 3,714 3,537 3,600 3,680 4,020
Professional services 966 951 984 1,163 1,094
FDIC insurance 878 883 929 831 867
Advertising and
marketing 861 903 878 823 748
Amortization of
identified intangible
assets 635 724 725 724 738
Other 2,746 3,061 2,744 2,709 2,863
----- ----- ----- ----- -----
Total non-interest
expense 32,053 32,329 31,270 30,452 31,326
------ ------ ------ ------ ------
Income before provision
for income taxes 21,241 22,292 20,346 19,674 19,409
Provision for income
taxes 7,599 8,237 6,897 7,115 7,104
----- ----- ----- ----- -----
Net income before
noncontrolling
interest in subsidiary 13,642 14,055 13,449 12,559 12,305
Less net income
attributable to
noncontrolling
interest in subsidiary 830 728 561 694 602
--- --- --- --- ---
Net income attributable
to Brookline Bancorp,
Inc. $12,812 $13,327 $12,888 $11,865 $11,703
======= ======= ======= ======= =======
Earnings per common share:
Basic $0.18 $0.19 $0.18 $0.17 $0.17
Diluted $0.18 $0.19 $0.18 $0.17 $0.17
Weighted average common shares outstanding during the period:
Basic 70,185,356 70,177,382 70,129,056 70,049,829 70,036,090
Diluted 70,341,843 70,318,657 70,240,020 70,215,850 70,164,105
Dividends declared per
common share $0.090 $0.090 $0.090 $0.090 $0.085
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Asset Quality Analysis (Unaudited)
At and for the Three Months Ended
---------------------------------
March 31, 2016 December 31, 2015 September 30, 2015 June 30, 2015 March 31, 2015
-------------- ----------------- ------------------ ------------- --------------
(Dollars in Thousands)
NONPERFORMING ASSETS:
Loans and leases accounted for on a nonaccrual basis:
Commercial real estate
mortgage $5,440 $5,482 $3,155 $3,174 $3,250
Multi-family mortgage 1,446 291 309 309 -
Total commercial real estate
loans 6,886 5,773 3,464 3,483 3,250
----- ----- ----- ----- -----
Commercial 15,050 6,264 8,326 12,316 12,039
Equipment financing 5,391 2,610 2,896 2,639 2,321
Total commercial loans and
leases 20,441 8,874 11,222 14,955 14,360
------ ----- ------ ------ ------
Indirect automobile loans 308 675 629 417 468
Residential mortgage 2,132 2,225 2,539 2,421 2,632
Home equity 2,104 1,757 1,818 2,144 1,979
Other consumer 34 29 52 42 45
--- --- --- --- ---
Total consumer loans 4,270 4,011 4,409 4,607 4,656
----- ----- ----- ----- -----
Total nonaccrual loans and
leases 31,905 19,333 19,724 23,462 22,734
------ ------ ------ ------ ------
Other real estate owned 408 729 1,149 1,676 1,043
Other repossessed assets 157 614 152 736 980
--- --- --- --- ---
Total nonperforming assets $32,470 $20,676 $21,025 $25,874 $24,757
======= ======= ======= ======= =======
Loans and leases past due
greater than 90 days and
still accruing $3,512 $8,690 $8,792 $10,220 $8,061
====== ====== ====== ======= ======
Troubled debt restructurings
on accrual 16,697 17,953 17,746 14,205 14,184
Troubled debt restructurings
on nonaccrual 14,614 4,965 5,960 5,981 6,126
------ ----- ----- ----- -----
Total troubled debt
restructurings $31,311 $22,918 $23,706 $20,186 $20,310
======= ======= ======= ======= =======
Nonperforming loans and
leases as a percentage of
total loans and leases 0.62 % 0.39 % 0.41 % 0.50 % 0.49 %
Nonperforming assets as a
percentage of total assets 0.53 % 0.34 % 0.36 % 0.45 % 0.43 %
PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:
Allowance for loan and lease
losses at beginning of
period $56,739 $56,472 $56,398 $55,106 $53,659
Charge-offs (875) (1,929) (1,931) (1,029) (1,665)
Recoveries 475 540 332 528 811
--- --- --- --- ---
Net charge-offs (400) (1,389) (1,599) (501) (854)
Provision for loan and lease
losses 2,267 1,656 1,673 1,793 2,301
----- ----- ----- ----- -----
Allowance for loan and lease
losses at end of period $58,606 $56,739 $56,472 $56,398 $55,106
======= ======= ======= ======= =======
Allowance for loan and lease
losses as a percentage of
total loans and leases 1.14 % 1.14 % 1.17 % 1.19 % 1.19 %
Allowance for loan and lease
losses related to originated
loans and leases as a
percentage of originated
loans and leases (non-GAAP) 1.20 % 1.20 % 1.25 % 1.27 % 1.28 %
NET CHARGE-OFFS:
Commercial real estate loans $331 $ - $ - $162 $388
Commercial loans and leases 64 1,302 1,276 151 238
Indirect automobile loans 13 3 117 (13) 239
Consumer loans (8) 84 206 201 (11)
--- --- --- --- ---
Total net charge-offs $400 $1,389 $1,599 $501 $854
==== ====== ====== ==== ====
Net loan and lease charge-
offs as a percentage of
average loans and leases
(annualized) 0.03 % 0.11 % 0.13 % 0.04 % 0.07 %
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Average Yields / Costs (Unaudited)
Three Months Ended
------------------
March 31, 2016 December 31, 2015 March 31, 2015
-------------- ----------------- --------------
Average Interest (1) Average Average Interest (1) Average Yield/ Average Interest (1) Average Yield/
Balance Yield/ Balance Cost Balance Cost
Cost
---
(Dollars in Thousands)
Assets:
Interest-earning assets:
Investments:
Debt securities (2) $604,034 $3,011 1.99 % $601,590 $2,992 1.99 % $555,558 $2,683 1.93 %
Marketable and restricted
equity securities (2) 66,887 679 4.07 % 66,659 667 4.01 % 74,836 566 3.03 %
Short-term investments 41,861 39 0.38 % 54,514 30 0.22 % 49,841 21 0.17 %
------ --- ------ --- ------ ---
Total investments 712,782 3,729 2.09 % 722,763 3,689 2.04 % 680,235 3,270 1.92 %
------- ----- ------- ----- ------- -----
Loans and Leases:
Commercial real estate loans
(3) 2,698,098 27,266 4.04 % 2,603,238 27,072 4.16 % 2,475,950 26,245 4.24 %
Commercial loans (3) 670,671 6,651 3.93 % 656,760 7,119 4.25 % 610,695 6,506 4.26 %
Equipment financing (3) 726,928 11,750 6.47 % 698,049 11,831 6.78 % 611,309 10,544 6.90 %
Indirect automobile loans
(3) 12,493 153 4.93 % 14,991 144 3.81 % 282,494 2,142 3.08 %
Residential mortgage loans
(3) 625,351 5,559 3.56 % 619,959 5,450 3.52 % 576,858 5,307 3.68 %
Other consumer loans (3) 330,078 3,117 3.78 % 323,659 3,419 4.19 % 299,119 2,828 3.83 %
------- ----- ------- ----- ------- -----
Total loans and leases 5,063,619 54,496 4.30 % 4,916,656 55,035 4.48 % 4,856,425 53,572 4.41 %
--------- ------ --------- ------ --------- ------
Total interest-earning
assets 5,776,401 58,225 4.03 % 5,639,419 58,724 4.17 % 5,536,660 56,842 4.11 %
--------- ------ --------- ------ --------- ------
Allowance for loan and lease
losses (57,125) (57,182) (54,319)
Non-interest-earning assets 373,582 374,954 369,773
------- ------- -------
Total assets $6,092,858 $5,957,191 $5,852,114
========== ========== ==========
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts $279,414 51 0.07 % $263,893 47 0.07 % $237,718 44 0.07 %
Savings accounts 564,681 344 0.25 % 517,333 301 0.23 % 541,595 273 0.20 %
Money market accounts 1,629,054 1,775 0.44 % 1,608,959 1,762 0.43 % 1,536,751 1,816 0.48 %
Certificates of deposit 1,077,639 2,575 0.96 % 1,054,872 2,444 0.92 % 1,033,511 2,171 0.85 %
--------- ----- --------- ----- --------- -----
Total interest-bearing
deposits 3,550,788 4,745 0.54 % 3,445,057 4,554 0.52 % 3,349,575 4,304 0.52 %
--------- ----- --------- ----- --------- -----
Borrowings
Advances from the FHLBB 863,960 2,669 1.22 % 836,939 2,536 1.19 % 941,314 2,504 1.06 %
Subordinated debentures and
notes 82,955 1,256 6.06 % 82,906 1,252 6.04 % 82,784 1,248 6.03 %
Other borrowed funds 39,624 25 0.26 % 33,459 28 0.33 % 37,806 25 0.26 %
------ --- ------ --- ------ ---
Total borrowings 986,539 3,950 1.58 % 953,304 3,816 1.57 % 1,061,904 3,777 1.42 %
------- ----- ------- ----- --------- -----
Total interest-bearing
liabilities 4,537,327 8,695 0.77 % 4,398,361 8,370 0.75 % 4,411,479 8,081 0.74 %
--------- ----- --------- ----- --------- -----
Non-interest-bearing liabilities:
Demand checking accounts 798,869 806,348 728,099
Other non-interest-bearing
liabilities 73,700 79,492 59,226
------ ------ ------
Total liabilities 5,409,896 5,284,201 5,198,804
Brookline Bancorp, Inc.
stockholders' equity 677,101 667,471 648,683
Noncontrolling interest in
subsidiary 5,861 5,519 4,627
----- ----- -----
Total liabilities and equity $6,092,858 $5,957,191 $5,852,114
========== ========== ==========
Net interest income (tax-equivalent basis) /Interest-rate
spread (4) 49,530 3.26 % 50,354 3.42 % 48,761 3.37 %
===== ===== =====
Less adjustment of tax-exempt income 327 276 233
--- --- ---
Net interest income $49,203 $50,078 $48,528
======= ======= =======
Net interest margin (5) 3.45 % 3.54 % 3.57 %
===== ===== =====
(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.
Non-GAAP Financial Information (Unaudited)
At and for the Three Months Ended
---------------------------------
March 31, 2016 December 31, 2015 September 30, 2015 June 30, 2015 March 31, 2015
-------------- ----------------- ------------------ ------------- --------------
(Dollars in Thousands)
Net income, as reported $12,812 $13,327 $12,888 $11,865 $11,703
======= ======= ======= ======= =======
Average total assets $6,092,858 $5,957,191 $5,790,469 $5,762,620 $5,852,114
Less: Average goodwill and
average identified
intangible assets, net 148,248 148,930 149,669 150,385 151,125
Average tangible assets $5,944,610 $5,808,261 $5,640,800 $5,612,235 $5,700,989
========== ========== ========== ========== ==========
Return on average tangible
assets (annualized) 0.86 % 0.92 % 0.91 % 0.85 % 0.82 %
Average total
stockholders' equity $677,101 $667,471 $659,761 $655,223 $648,683
Less: Average goodwill and
average identified
intangible assets, net 148,248 148,930 149,669 150,385 151,125
Average tangible
stockholders' equity $528,853 $518,541 $510,092 $504,838 $497,558
======== ======== ======== ======== ========
Return on average tangible
stockholders' equity
(annualized) 9.69 % 10.28 % 10.11 % 9.40 % 9.41 %
Brookline Bancorp, Inc.
stockholders' equity $680,417 $667,485 $663,468 $653,516 $651,319
Less:
Goodwill 137,890 137,890 137,890 137,890 137,890
Identified intangible
assets, net 9,998 10,633 11,357 12,082 12,806
----- ------ ------ ------ ------
Tangible stockholders'
equity $532,529 $518,962 $514,221 $503,544 $500,623
======== ======== ======== ======== ========
Total assets $6,181,030 $6,042,338 $5,839,529 $5,782,934 $5,755,146
Less:
Goodwill 137,890 137,890 137,890 137,890 137,890
Identified intangible
assets, net 9,998 10,633 11,357 12,082 12,806
----- ------ ------ ------ ------
Tangible assets $6,033,142 $5,893,815 $5,690,282 $5,632,962 $5,604,450
========== ========== ========== ========== ==========
Tangible stockholders'
equity to tangible assets 8.83 % 8.81 % 9.04 % 8.94 % 8.93 %
Tangible stockholders'
equity $532,529 $518,962 $514,221 $503,544 $500,623
======== ======== ======== ======== ========
Number of common shares
issued 75,744,445 75,744,445 75,744,445 75,744,445 75,744,445
Less:
Treasury shares 4,861,554 4,861,554 4,861,085 5,048,525 5,042,238
Unallocated ESOP shares 203,973 213,066 222,645 232,224 241,803
Unvested restricted shares 486,035 486,035 486,999 406,566 418,035
------- ------- ------- ------- -------
Number of common shares
outstanding 70,192,883 70,183,790 70,173,716 70,057,130 70,042,369
========== ========== ========== ========== ==========
Tangible book value per
common share $7.59 $7.39 $7.33 $7.19 $7.15
Allowance for loan and
lease losses $58,606 $56,739 $56,472 $56,398 $55,106
Less:
Allowance for acquired
loans and leases losses 1,938 1,752 2,048 2,655 2,911
----- ----- ----- ----- -----
Allowance for originated
loan and lease losses $56,668 $54,987 $54,424 $53,743 $52,195
======= ======= ======= ======= =======
Total loans and leases $5,130,445 $4,995,540 $4,829,152 $4,729,581 $4,634,594
Less:
Total acquired loans and
leases 395,782 422,652 457,922 509,028 561,103
------- ------- ------- ------- -------
Total originated loans and
leases $4,734,663 $4,572,888 $4,371,230 $4,220,553 $4,073,491
========== ========== ========== ========== ==========
Allowance for loan and
lease losses related to
originated loans and
leases as a percentage of
originated loans and
leases 1.20 % 1.20 % 1.25 % 1.27 % 1.28 %
http://photos.prnewswire.com/prnvar/20150126/171362LOGO
Logo - http://photos.prnewswire.com/prnh/20150126/171362LOGO
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/brookline-bancorp-announces-first-quarter-results-300254926.html
SOURCE Brookline Bancorp, Inc.
