BROOKLINE BANCORP, INC. BOSTON, Jan. 27, 2016 /PRNewswire/ -- Brookline Bancorp, Inc. (NASDAQ: BRKL) (the "Company") today announced net income of $13.3 million, or $0.19 per basic and diluted share, for the fourth quarter of 2015, compared to $12.9 million, or $0.18 per basic and diluted share, for the third quarter of 2015.
For the year ended December 31, 2015, the Company reported net income of $49.8 million, or $0.71 per basic and diluted share, compared to $43.3 million, or $0.62 per basic and diluted share, for the year ended December 31, 2014.
Paul Perrault, President and Chief Executive Officer of the Company, stated: "We are pleased to finish 2015 with over 15 percent growth in earnings. During the year we exited the indirect auto business to focus our resources and capital on serving our commercial real estate, commercial and consumer relationships. Excluding the indirect auto business, we grew our loan balances over 10 percent and our demand deposits grew over 7 percent. Our asset quality remains strong and our Company continues to be well-capitalized. I am grateful to all our employees who have demonstrated dedication and commitment to accomplishing these outstanding results. Our Company is solidly positioned to achieve continued success in 2016."
BALANCE SHEET
Total assets at December 31, 2015 increased $202.8 million to $6.0 billion from $5.8 billion at September 30, 2015, and increased $241.4 million from $5.8 billion at December 31, 2014. The increase in total assets of 13.9 percent on an annualized basis during the fourth quarter of 2015 was primarily driven by increases in loans and leases. At December 31, 2015, total loans and leases were $5.0 billion, representing an increase of $166.4 million from September 30, 2015, and an increase of $172.9 million from December 31, 2014. During the fourth quarter of 2015, total loans and leases grew 13.8 percent on an annualized basis. Strong loan growth continued in the total commercial real estate and commercial loan and lease portfolios, which increased $152.7 million during the fourth quarter of 2015, or 15.7 percent on an annualized basis.
Cash, cash equivalents, and investment securities at December 31, 2015 increased $45.5 million to $682.4 million, or 11.3 percent of total assets, as compared to $636.9 million, or 10.9 percent of total assets, at September 30, 2015, and increased approximately $68.4 million from $614.0 million, or 10.6 percent of total assets, at December 31, 2014.
Total deposits at December 31, 2015 increased $161.4 million to $4.3 billion from $4.1 billion at September 30, 2015 and increased $347.9 million from $4.0 billion at December 31, 2014. During the fourth quarter of 2015, balances increased in all deposit account types. Core deposits, which consist of demand checking, NOW, savings, and money market accounts, increased $138.0 million from September 30, 2015 and increased $206.7 million from December 31, 2014. Core deposits as a percentage of total deposits also increased slightly to 74.7 percent at December 31, 2015 from 74.3 percent at September 30, 2015, but decreased from 76.1 percent at December 31, 2014. The average cost of deposits increased slightly to 0.52 percent for the three months ended December 31, 2015 from 0.51 percent for the three months ended September 30, 2015.
Total borrowings at December 31, 2015 increased $22.8 million to $983.0 million from $960.2 million at September 30, 2015 and decreased $143.4 million from $1.1 billion at December 31, 2014 as proceeds from the sale of indirect automobile loans in the first quarter were used to pay down short term borrowings.
The ratio of stockholders' equity to total assets was 11.05 percent at December 31, 2015, as compared to 11.36 percent at September 30, 2015 and 11.06 percent at December 31, 2014. The ratio of tangible stockholders' equity to tangible assets was 8.81 percent at December 31, 2015, as compared to 9.04 percent at September 30, 2015 and 8.68 percent at December 31, 2014.
NET INTEREST INCOME
Net interest income increased $1.5 million to $50.1 million during the fourth quarter of 2015 from the previous quarter. The net interest margin remained constant at 3.54 percent during the fourth quarter of 2015. The increase in net interest income included the accelerated recognition of $1.0 million related to several acquired loans which paid off during the quarter with the remaining increase of $0.5 million primarily driven by increased interest income from higher loan balances, partially offset by increased interest expense from higher deposit balances.
PROVISION FOR LOAN AND LEASE LOSSES
The Company recorded a provision for loan and lease losses of $1.7 million for the quarter ended December 31, 2015, consistent with the previous quarter.
Net charge-offs decreased $0.2 million to $1.4 million for the fourth quarter of 2015 from $1.6 million for the third quarter of 2015. The ratio of net charge-offs to average loans on an annualized basis decreased to 11 basis points for the fourth quarter of 2015 from 13 basis points for the third quarter of 2015.
The allowance for loan and lease losses represented 1.14 percent of total loans and leases at December 31, 2015, compared to 1.17 percent at September 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 1.20 percent at December 31, 2015, compared to 1.25 percent at September 30, 2015 and 1.20 percent at December 31, 2014.
NON-INTEREST INCOME
Non-interest income for the quarter ended December 31, 2015 increased $1.3 million to $6.1 million from $4.8 million for the previous quarter. The increase was primarily driven by an increase of $0.7 million in loan level derivative income, an increase of $0.3 million in loan level derivative mark to market adjustments recorded in other income and an increase of $0.2 million in gain on sales of loans and leases held-for-sale.
NON-INTEREST EXPENSE
Non-interest expense for the quarter ended December 31, 2015 increased $1.1 million to $32.3 million from $31.3 million for the previous quarter. The increase was primarily driven by an increase of $0.9 million in compensation and employee benefits, largely associated with performance based incentives.
PROVISION FOR INCOME TAXES
The effective tax rate was 37.0 percent and 35.9 percent for the three months and twelve months ended December 31, 2015, respectively.
RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY
The return on average assets remained unchanged at 0.89 percent during the fourth quarter of 2015. The return on average tangible assets increased to 0.92 percent for the fourth quarter of 2015 from 0.91 percent for the third quarter of 2015.
The return on average stockholders' equity increased during the fourth quarter of 2015 to 7.99 percent from 7.81 percent for the third quarter of 2015. The return on average tangible stockholders' equity increased to 10.28 percent for the fourth quarter of 2015 from 10.11 percent for the third quarter of 2015.
ASSET QUALITY
Nonperforming loans and leases decreased $0.4 million during the fourth quarter of 2015 to $19.3 million at December 31, 2015 from the previous quarter. The ratio of nonperforming loans and leases to total loans and leases decreased to 0.39 percent at December 31, 2015 from the previous quarter. Nonperforming assets also decreased $0.3 million to $20.7 million, or 0.34 percent of total assets, at December 31, 2015.
DIVIDEND DECLARED
The Company's Board of Directors approved a dividend of $0.09 per share for the quarter ended December 31, 2015. The dividend will be paid on February 26, 2016 to stockholders of record on February 12, 2016.
CONFERENCE CALL
The Company will conduct a conference call/webcast at 1:30 PM Eastern Standard Time on Thursday, January 28, 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 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 $6.0 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.
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Selected Financial Highlights (Unaudited)
At and for the Three Months Ended At and for the Twelve Months Ended
--------------------------------- ----------------------------------
December 31, 2015 September 30, 2015 June 30, 2015 March 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014
----------------- ------------------ ------------- -------------- ----------------- ----------------- -----------------
(Dollars In Thousands Except Per Share Data)
Earnings Data:
Net interest income $50,078 $48,587 $47,172 $48,528 $47,576 $194,365 $189,068
Provision for credit losses 1,520 1,755 1,913 2,263 1,724 7,451 8,477
Non-interest income* 6,063 4,784 4,867 4,470 4,541 20,184 20,180
Non-interest expense 32,329 31,270 30,452 31,326 32,455 125,377 129,160
Income before provision for income taxes* 22,292 20,346 19,674 19,409 17,938 81,721 71,611
Net income attributable to Brookline Bancorp, Inc.* 13,327 12,888 11,865 11,703 10,875 49,782 43,288
Performance Ratios:
Net interest margin (1) 3.54 % 3.54 % 3.49 % 3.57 % 3.49 % 3.54 % 3.61 %
Interest-rate spread (1) 3.42 % 3.41 % 3.32 % 3.36 % 3.37 % 3.37 % 3.48 %
Return on average assets* 0.89 % 0.89 % 0.82 % 0.80 % 0.76 % 0.85 % 0.78 %
Return on average tangible assets (non-GAAP)* 0.92 % 0.91 % 0.85 % 0.82 % 0.78 % 0.87 % 0.80 %
Return on average stockholders' equity* 7.99 % 7.81 % 7.24 % 7.22 % 6.79 % 7.57 % 6.86 %
Return on average tangible stockholders' equity (non-GAAP)* 10.28 % 10.11 % 9.40 % 9.41 % 8.90 % 9.80 % 9.06 %
Efficiency ratio* 57.59 % 58.59 % 58.52 % 59.11 % 62.27 % 58.44 % 61.73 %
Per Common Share Data:
Net income - Basic* $0.19 $0.18 $0.17 $0.17 $0.16 $0.71 $0.62
Net income - Diluted* 0.19 0.18 0.17 0.17 0.16 0.71 0.62
Cash dividends declared 0.090 0.090 0.090 0.085 0.085 0.355 0.340
Book value per share (end of period)* 9.51 9.45 9.33 9.30 9.16 9.51 9.16
Tangible book value per share (end of period) (non-GAAP)* 7.39 7.33 7.19 7.15 7.00 7.39 7.00
Stock price (end of period) 11.50 10.14 11.29 10.05 10.03 11.50 10.03
Balance Sheet:
Total assets* $6,042,338 $5,839,529 $5,782,934 $5,755,146 $5,800,948 $6,042,338 $5,800,948
Total loans and leases 4,995,540 4,829,152 4,729,581 4,634,594 4,822,607 4,995,540 4,822,607
Total deposits 4,306,018 4,144,577 4,129,408 4,114,795 3,958,106 4,306,018 3,958,106
Brookline Bancorp, Inc. stockholders' equity* 667,485 663,468 653,516 651,319 641,818 667,485 641,818
Asset Quality:
Nonperforming assets $20,676 $21,025 $25,874 $24,757 $15,170 $20,676 $15,170
Nonperforming assets as a percentage of total assets* 0.34 % 0.36 % 0.45 % 0.43 % 0.26 % 0.34 % 0.26 %
Allowance for loan and lease losses $56,739 $56,472 $56,398 $55,106 $53,659 $56,739 $53,659
Allowance for loan and lease losses as a percentage of total loans and leases 1.14 % 1.17 % 1.19 % 1.19 % 1.11 % 1.14 % 1.11 %
Net loan and lease charge-offs $1,389 $1,599 $501 $854 $874 $4,343 $3,053
Net loan and lease charge-offs as a percentage of average loans and leases
(annualized) 0.11 % 0.13 % 0.04 % 0.07 % 0.07 % 0.09 % 0.07 %
Capital Ratios:
Stockholders' equity to total assets* 11.05 % 11.36 % 11.30 % 11.32 % 11.06 % 11.05 % 11.06 %
Tangible stockholders' equity to tangible assets (non-GAAP)* 8.81 % 9.04 % 8.94 % 8.93 % 8.68 % 8.81 % 8.68 %
(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)
December 31, 2015 September 30, 2015 June 30, 2015 March 31, 2015 December 31, 2014
----------------- ------------------ ------------- -------------- -----------------
ASSETS (In Thousands Except Share Data)
Cash and due from banks $28,753 $27,299 $43,363 $35,118 $36,893
Short-term investments 46,736 19,745 48,513 162,003 25,830
------ ------ ------ ------- ------
Total cash and cash equivalents 75,489 47,044 91,876 197,121 62,723
------ ------ ------ ------- ------
Investment securities available-for-sale 513,201 526,764 530,476 565,115 550,761
Investment securities held-to-maturity 93,757 63,097 60,511 500 500
------ ------ ------ --- ---
Total investment securities 606,958 589,861 590,987 565,615 551,261
------- ------- ------- ------- -------
Loans and leases held-for-sale 13,383 10,992 12,482 787 1,537
Loans and leases:
Commercial real estate loans:
Commercial real estate mortgage 1,875,592 1,810,550 1,758,281 1,714,140 1,680,082
Multi-family mortgage 658,480 614,560 627,571 652,500 639,706
Construction 130,322 138,261 127,506 134,247 148,013
------- ------- ------- ------- -------
Total commercial real estate loans 2,664,394 2,563,371 2,513,358 2,500,887 2,467,801
--------- --------- --------- --------- ---------
Commercial loans and leases:
Commercial 592,531 580,711 578,548 560,344 514,077
Equipment financing 721,890 684,331 648,447 614,301 601,424
Condominium association 59,875 57,562 55,185 52,707 51,593
------ ------ ------ ------ ------
Total commercial loans and leases 1,374,296 1,322,604 1,282,180 1,227,352 1,167,094
--------- --------- --------- --------- ---------
Indirect automobile loans 13,678 16,294 19,377 23,335 316,987
------ ------ ------ ------ -------
Consumer loans:
Residential mortgage 616,449 606,063 603,073 578,994 571,920
Home equity 314,553 308,371 299,396 292,198 287,058
Other consumer 12,170 12,449 12,197 11,828 11,747
------ ------ ------ ------ ------
Total consumer loans 943,172 926,883 914,666 883,020 870,725
------- ------- ------- ------- -------
Total loans and leases 4,995,540 4,829,152 4,729,581 4,634,594 4,822,607
Allowance for loan and lease losses (56,739) (56,472) (56,398) (55,106) (53,659)
------- ------- ------- ------- -------
Net loans and leases 4,938,801 4,772,680 4,673,183 4,579,488 4,768,948
--------- --------- --------- --------- ---------
Restricted equity securities 66,117 75,553 75,553 74,804 74,804
Premises and equipment, net of accumulated depreciation 78,156 77,472 77,892 79,252 80,619
Deferred tax asset 26,817 25,730 28,466 25,834 27,687
Goodwill 137,890 137,890 137,890 137,890 137,890
Identified intangible assets, net of accumulated amortization 10,633 11,357 12,082 12,806 13,544
Other real estate owned and repossessed assets 1,343 1,301 2,412 2,023 1,456
Other assets* 86,751 89,649 80,111 79,526 80,479
------ ------ ------ ------ ------
Total assets* $6,042,338 $5,839,529 $5,782,934 $5,755,146 $5,800,948
========== ========== ========== ========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest-bearing deposits:
Demand checking accounts $799,117 $785,210 $783,331 $729,932 $726,118
Interest-bearing deposits:
NOW accounts 283,972 254,767 247,172 237,200 235,063
Savings accounts 540,788 500,104 532,184 571,030 531,727
Money market accounts 1,594,269 1,540,104 1,523,798 1,525,053 1,518,490
Certificate of deposit accounts 1,087,872 1,064,392 1,042,923 1,051,580 946,708
--------- --------- --------- --------- -------
Total interest-bearing deposits 3,506,901 3,359,367 3,346,077 3,384,863 3,231,988
--------- --------- --------- --------- ---------
Total deposits 4,306,018 4,144,577 4,129,408 4,114,795 3,958,106
--------- --------- --------- --------- ---------
Borrowed funds:
Advances from the FHLBB 861,866 848,913 823,452 806,491 1,004,026
Subordinated debentures and notes 82,936 82,873 82,850 82,806 82,763
Other borrowed funds 38,227 28,434 31,346 35,628 39,615
------ ------ ------ ------ ------
Total borrowed funds 983,029 960,220 937,648 924,925 1,126,404
------- ------- ------- ------- ---------
Mortgagors' escrow accounts 7,516 7,996 7,494 8,414 8,501
Accrued expenses and other liabilities 72,289 57,996 49,792 51,046 61,332
------ ------ ------ ------ ------
Total liabilities 5,368,852 5,170,789 5,124,342 5,099,180 5,154,343
--------- --------- --------- --------- ---------
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 616,899 616,252 618,044 617,845 617,475
Retained earnings, partially restricted* 109,675 102,684 96,128 90,589 84,860
Accumulated other comprehensive income (loss) (2,476) 1,191 (1,775) 1,747 (1,622)
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 (56,208) (56,202) (58,372) (58,301) (58,282)
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 (1,162) (1,214) (1,266) (1,318) (1,370)
------ ------ ------ ------ ------
Total Brookline Bancorp, Inc. stockholders' equity* 667,485 663,468 653,516 651,319 641,818
------- ------- ------- ------- -------
Noncontrolling interest in subsidiary 6,001 5,272 5,076 4,647 4,787
----- ----- ----- ----- -----
Total stockholders' equity* 673,486 668,740 658,592 655,966 646,605
Total liabilities and stockholders' equity* $6,042,338 $5,839,529 $5,782,934 $5,755,146 $5,800,948
========== ========== ========== ========== ==========
(*) 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
------------------
December 31, 2015 September 30, 2015 June 30, 2015 March 31, 2015 December 31, 2014
----------------- ------------------ ------------- -------------- -----------------
(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases $54,814 $52,725 $51,684 $53,381 $52,637
Debt securities 2,936 2,866 2,931 2,683 2,596
Marketable and restricted equity securities 668 1,079 491 524 564
Short-term investments 30 17 60 21 29
--- --- --- --- ---
Total interest and dividend income 58,448 56,687 55,166 56,609 55,826
------ ------ ------ ------ ------
Interest expense:
Deposits 4,554 4,326 4,296 4,304 4,320
Borrowed funds 3,816 3,774 3,698 3,777 3,930
----- ----- ----- ----- -----
Total interest expense 8,370 8,100 7,994 8,081 8,250
----- ----- ----- ----- -----
Net interest income 50,078 48,587 47,172 48,528 47,576
Provision for credit losses 1,520 1,755 1,913 2,263 1,724
----- ----- ----- ----- -----
Net interest income after provision for credit losses 48,558 46,832 45,259 46,265 45,852
------ ------ ------ ------ ------
Non-interest income:
Deposit fees 2,208 2,261 2,195 2,066 2,177
Loan fees 364 205 271 342 286
Loan level derivative income, net 1,556 900 941 - 562
Gain/(loss) on sales of securities, net - - - - 78
Gain on sales of loans and leases held-for-sale 614 446 279 869 368
(Loss)/gain on sale/disposals of premises and equipment, net - - - - -
Litigation settlement - - - - -
Other 1,321 972 1,181 1,193 1,070
----- --- ----- ----- -----
Total non-interest income* 6,063 4,784 4,867 4,470 4,541
----- ----- ----- ----- -----
Non-interest expense:
Compensation and employee benefits 18,788 17,875 17,085 17,524 18,216
Occupancy 3,482 3,535 3,437 3,472 3,401
Equipment and data processing 3,537 3,600 3,680 4,020 4,102
Professional services 951 984 1,163 1,094 1,159
FDIC insurance 883 929 831 867 782
Advertising and marketing 903 878 823 748 872
Amortization of identified intangible assets 724 725 724 738 827
Other 3,061 2,744 2,709 2,863 3,096
----- ----- ----- ----- -----
Total non-interest expense 32,329 31,270 30,452 31,326 32,455
------ ------ ------ ------ ------
Income before provision for income taxes* 22,292 20,346 19,674 19,409 17,938
Provision for income taxes* 8,237 6,897 7,115 7,104 6,586
----- ----- ----- ----- -----
Net income before noncontrolling interest in subsidiary* 14,055 13,449 12,559 12,305 11,352
Less net income attributable to noncontrolling interest in subsidiary 728 561 694 602 477
--- --- --- --- ---
Net income attributable to Brookline Bancorp, Inc.* $13,327 $12,888 $11,865 $11,703 $10,875
======= ======= ======= ======= =======
Earnings per common share:*
Basic $0.19 $0.18 $0.17 $0.17 $0.16
Diluted $0.19 $0.18 $0.17 $0.17 $0.16
Weighted average common shares outstanding during the period:
Basic 70,177,382 70,129,056 70,049,829 70,036,090 70,024,495
Diluted 70,318,657 70,240,020 70,215,850 70,164,105 70,130,243
Dividends declared per common share $0.090 $0.090 $0.090 $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)
Twelve Months Ended
December 31,
--------------------
2015 2014
---- ----
(In Thousands Except Share
Data)
Interest and dividend income:
Loans and leases $212,604 $206,781
Debt securities 11,416 9,527
Marketable and restricted equity
securities 2,762 2,072
Short-term investments 128 102
--- ---
Total interest and dividend income 226,910 218,482
------- -------
Interest expense:
Deposits 17,480 17,060
Borrowed funds 15,065 12,354
------ ------
Total interest expense 32,545 29,414
------ ------
Net interest income 194,365 189,068
Provision for credit losses 7,451 8,477
----- -----
Net interest income after provision
for credit losses 186,914 180,591
------- -------
Non-interest income:
Deposit Fees 8,730 8,692
Loan Fees 1,186 1,010
Loan level derivative income, net 3,397 946
Loss on sales of investment securities, net 65
-
Gain on sales of loans and leases
held-for-sale 2,208 1,651
Gain on sale/disposals of premises and equipment, net 1,502
-
Other 4,663 6,314
Total non-interest income* 20,184 20,180
------ ------
Non-interest expense:
Compensation and employee benefits 71,272 71,801
Occupancy 13,926 14,294
Equipment and data processing 14,837 17,020
Professional services 4,192 5,357
FDIC insurance 3,510 3,362
Advertising and marketing 3,352 3,058
Amortization of identified
intangible assets 2,911 3,343
Other 11,377 10,925
------ ------
Total non-interest expense 125,377 129,160
------- -------
Income before provision for income
taxes* 81,721 71,611
Provision for income taxes* 29,353 26,286
------ ------
Net income before noncontrolling
interest in subsidiary* 52,368 45,325
Less net income attributable to
noncontrolling interest in
subsidiary 2,586 2,037
----- -----
Net income attributable to
Brookline Bancorp, Inc.* $49,782 $43,288
======= =======
Earnings per common share:
Basic $0.71 $0.62
Diluted $0.71 $0.62
Weighted average common shares outstanding during the period:
Basic 70,098,561 69,945,028
Diluted 70,235,868 70,054,815
Dividends declared per common share $0.355 $0.340
(*) 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
---------------------------------
December 31, September 30, June 30, March 31, December 31,
2015 2015 2015 2015 2014
---- ---- ---- ---- ----
(Dollars in Thousands)
NONPERFORMING ASSETS:
Loans and leases accounted for on a nonaccrual basis:
Commercial real estate mortgage $5,482 $3,155 $3,174 $3,250 $1,009
Multi-family mortgage 291 309 309 - -
Total commercial real estate loans 5,773 3,464 3,483 3,250 1,009
----- ----- ----- ----- -----
Commercial 6,264 8,326 12,316 12,039 5,196
Equipment financing 2,610 2,896 2,639 2,321 3,223
Total commercial loans and leases 8,874 11,222 14,955 14,360 8,419
----- ------ ------ ------ -----
Indirect automobile loans 675 629 417 468 645
Residential mortgage 2,225 2,539 2,421 2,632 1,682
Home equity 1,757 1,818 2,144 1,979 1,918
Other consumer 29 52 42 45 41
--- --- --- --- ---
Total consumer loans 4,011 4,409 4,607 4,656 3,641
----- ----- ----- ----- -----
Total nonaccrual loans and leases 19,333 19,724 23,462 22,734 13,714
------ ------ ------ ------ ------
Other real estate owned 729 1,149 1,676 1,043 953
Other repossessed assets 614 152 736 980 503
--- --- --- --- ---
Total nonperforming assets $20,676 $21,025 $25,874 $24,757 $15,170
======= ======= ======= ======= =======
Loans and leases past due greater than 90 days and still accruing $8,690 $8,792 $10,220 $8,061 $6,008
====== ====== ======= ====== ======
Troubled debt restructurings on accrual 17,953 17,746 14,205 14,184 14,815
Troubled debt restructurings on nonaccrual 4,965 5,960 5,981 6,126 5,625
----- ----- ----- ----- -----
Total troubled debt restructurings $22,918 $23,706 $20,186 $20,310 $20,440
======= ======= ======= ======= =======
Nonperforming loans and leases as a percentage of total loans and leases 0.39 % 0.41 % 0.50 % 0.49 % 0.28 %
Nonperforming assets as a percentage of total assets* 0.34 % 0.36 % 0.45 % 0.43 % 0.26 %
PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:
Allowance for loan and lease losses at beginning of period $56,472 $56,398 $55,106 $53,659 $52,822
Charge-offs (1,929) (1,931) (1,029) (1,665) (1,068)
Recoveries 540 332 528 811 194
--- --- --- --- ---
Net charge-offs (1,389) (1,599) (501) (854) (874)
Provision for loan and lease losses 1,656 1,673 1,793 2,301 1,711
----- ----- ----- ----- -----
Allowance for loan and lease losses at end of period $56,739 $56,472 $56,398 $55,106 $53,659
======= ======= ======= ======= =======
Allowance for loan and lease losses as a percentage of total loans and leases 1.14 % 1.17 % 1.19 % 1.19 % 1.11 %
Allowance for loan and lease losses related to originated loans and leases as a percentage of originated
loans and leases (non-GAAP) 1.20 % 1.25 % 1.27 % 1.28 % 1.20 %
NET CHARGE-OFFS:
Commercial real estate loans $ - $ - $162 $388 $62
Commercial loans and leases 1,302 1,276 151 238 480
Indirect automobile loans 3 117 (13) 239 281
Consumer loans 84 206 201 (11) 51
--- --- --- --- ---
Total net charge-offs $1,389 $1,599 $501 $854 $874
====== ====== ==== ==== ====
Net loan and lease charge-offs as a percentage of average loans and leases (annualized) 0.11 % 0.13 % 0.04 % 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
------------------
December 31, 2015 September 30, 2015 December 31, 2014
----------------- ------------------ -----------------
Average Balance Interest (1) Average Yield/ Cost Average Balance Interest (1) Average Yield/ Cost Average Balance Interest (1) Average Yield/ Cost
--------------- ----------- ------------------- --------------- ----------- ------------------- --------------- ----------- -------------------
(Dollars in Thousands)
Assets:
Interest-earning assets:
Investments:
Debt securities (2) $601,590 $2,992 1.99 % $587,804 $2,904 1.98 % $524,341 $2,596 1.98 %
Marketable and restricted equity securities (2) 66,659 667 4.01 % 76,530 1,111 5.81 % 76,133 596 3.13 %
Short-term investments 54,514 30 0.22 % 36,163 17 0.19 % 57,047 29 0.20 %
------ --- ------ --- ------ ---
Total investments 722,763 3,689 2.04 % 700,497 4,032 2.30 % 657,521 3,221 1.96 %
------- ----- ------- ----- ------- -----
Loans and Leases:
Commercial real estate loans (3) 2,603,238 27,072 4.16 % 2,531,729 26,739 4.22 % 2,422,804 26,243 4.33 %
Commercial loans (3) 656,760 7,119 4.25 % 636,756 6,570 4.05 % 562,180 5,944 4.14 %
Equipment financing (3) 698,049 11,831 6.78 % 664,010 11,300 6.81 % 588,886 9,951 6.76 %
Indirect automobile loans (3) 14,991 144 3.81 % 17,872 182 4.05 % 334,919 2,587 3.06 %
Residential mortgage loans (3) 619,959 5,450 3.52 % 613,678 5,437 3.54 % 569,896 5,143 3.61 %
Other consumer loans (3) 323,659 3,419 4.19 % 315,402 2,707 3.40 % 293,117 2,959 4.01 %
------- ----- ------- ----- ------- -----
Total loans and leases 4,916,656 55,035 4.48 % 4,779,447 52,935 4.43 % 4,771,802 52,827 4.43 %
--------- ------ --------- ------ --------- ------
Total interest-earning assets 5,639,419 58,724 4.17 % 5,479,944 56,967 4.16 % 5,429,323 56,048 4.13 %
--------- ------ --------- ------ --------- ------
Allowance for loan and lease losses (57,182) (56,833) (53,542)
Non-interest-earning assets* 374,954 367,358 381,934
------- ------- -------
Total assets* $5,957,191 $5,790,469 $5,757,715
========== ========== ==========
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts $263,893 47 0.07 % $246,163 44 0.07 % $229,897 45 0.08 %
Savings accounts 517,333 301 0.23 % 516,877 257 0.20 % 528,557 292 0.22 %
Money market accounts 1,608,959 1,762 0.43 % 1,550,477 1,664 0.43 % 1,537,740 1,994 0.51 %
Certificates of deposit 1,054,872 2,444 0.92 % 1,043,418 2,361 0.88 % 915,294 1,989 0.86 %
--------- ----- --------- ----- ------- -----
Total interest-bearing deposits 3,445,057 4,554 0.52 % 3,356,935 4,326 0.51 % 3,211,488 4,320 0.53 %
--------- ----- --------- ----- --------- -----
Borrowings
Advances from the FHLBB 836,939 2,536 1.19 % 801,379 2,495 1.22 % 1,005,585 2,662 1.04 %
Subordinated debentures and notes 82,906 1,252 6.04 % 82,866 1,251 6.04 % 82,743 1,250 6.04 %
Other borrowed funds 33,459 28 0.33 % 32,134 28 0.34 % 33,667 18 0.21 %
------ --- ------ --- ------ ---
Total borrowings 953,304 3,816 1.57 % 916,379 3,774 1.61 % 1,121,995 3,930 1.37 %
------- ----- ------- ----- --------- -----
Total interest-bearing liabilities 4,398,361 8,370 0.75 % 4,273,314 8,100 0.75 % 4,333,483 8,250 0.76 %
--------- ----- --------- ----- --------- -----
Non-interest-bearing liabilities:
Demand checking accounts 806,348 793,785 720,231
Other non-interest-bearing liabilities 79,492 58,414 58,831
------ ------ ------
Total liabilities 5,284,201 5,125,513 5,112,545
Brookline Bancorp, Inc. stockholders' equity* 667,471 659,761 640,706
Noncontrolling interest in subsidiary 5,519 5,195 4,464
----- ----- -----
Total liabilities and equity* $5,957,191 $5,790,469 $5,757,715
========== ========== ==========
Net interest income (tax-equivalent basis) /Interest-rate spread (4) 50,354 3.42 % 48,867 3.41 % 47,798 3.37 %
===== ===== =====
Less adjustment of tax-exempt income 276 280 222
--- --- ---
Net interest income $50,078 $48,587 $47,576
======= ======= =======
Net interest margin (5) 3.54 % 3.54 % 3.49 %
===== ===== =====
(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)
Twelve Months Ended
-------------------
December 31, 2015 December 31, 2014
----------------- -----------------
Average Balance Interest (1) Average Yield/ Cost Average Balance Interest (1) Average Yield/ Cost
--------------- ----------- ------------------- --------------- ----------- -------------------
(Dollars in Thousands)
Assets:
Interest-earning assets:
Investments:
Debt securities (2) $583,921 $11,521 1.97 % $518,920 $9,531 1.84 %
Marketable and restricted equity securities (2) 73,808 2,793 3.78 % 72,151 2,112 2.93 %
Short-term investments 56,520 128 0.23 % 45,560 102 0.22 %
------ --- ------ ---
Total investments 714,249 14,442 2.02 % 636,631 11,745 1.84 %
------- ------ ------- ------
Loans and Leases:
Commercial real estate loans (3) 2,529,566 106,447 4.21 % 2,324,934 103,324 4.42 %
Commercial loans (3) 636,084 26,590 4.13 % 522,208 21,341 4.04 %
Equipment financing (3) 650,376 44,468 6.84 % 554,240 39,807 7.18 %
Indirect automobile loans (3) 83,218 2,686 3.23 % 366,217 11,812 3.23 %
Residential mortgage loans (3) 600,072 21,455 3.58 % 551,481 19,957 3.62 %
Other consumer loans (3) 311,855 11,792 3.78 % 280,663 11,189 3.98 %
------- ------ ------- ------
Total loans and leases 4,811,171 213,438 4.44 % 4,599,743 207,430 4.51 %
--------- ------- --------- -------
Total interest-earning assets 5,525,420 227,880 4.12 % 5,236,374 219,175 4.19 %
--------- ------- --------- -------
Allowance for loan and lease losses (55,950) (51,480)
Non-interest-earning assets* 371,279 371,330
------- -------
Total assets* $5,840,749 $5,556,224
========== ==========
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts $249,204 179 0.07 % $220,377 171 0.08 %
Savings accounts 532,496 1,094 0.21 % 518,741 1,197 0.23 %
Money market accounts 1,560,437 6,935 0.44 % 1,526,915 7,846 0.51 %
Certificates of deposit 1,045,328 9,272 0.89 % 911,072 7,846 0.86 %
--------- ----- ------- -----
Total interest-bearing deposits 3,387,465 17,480 0.52 % 3,177,105 17,060 0.54 %
--------- ------ --------- ------
Borrowings
Advances from the FHLBB 840,123 9,950 1.17 % 935,400 10,535 1.11 %
Subordinated debentures and notes 82,846 5,001 6.04 % 30,766 1,740 5.66 %
Other borrowed funds 34,468 114 0.33 % 28,568 79 0.28 %
------ --- ------ ---
Total borrowings 957,437 15,065 1.55 % 994,734 12,354 1.22 %
------- ------ ------- ------
Total interest-bearing liabilities 4,344,902 32,545 0.75 % 4,171,839 29,414 0.71 %
--------- ------ --------- ------
Non-interest-bearing liabilities:
Demand checking accounts 770,045 700,815
Other non-interest-bearing liabilities 62,914 48,378
------ ------
Total liabilities 5,177,861 4,921,032
Brookline Bancorp, Inc. stockholders' equity* 657,841 630,966
Noncontrolling interest in subsidiary 5,047 4,226
----- -----
Total liabilities and equity* $5,840,749 $5,556,224
========== ==========
Net interest income (tax-equivalent basis) /Interest-rate spread (4) 195,335 3.37 % 189,761 3.48 %
===== =====
Less adjustment of tax-exempt income 970 693
--- ---
Net interest income $194,365 $189,068
======== ========
Net interest margin (5) 3.54 % 3.61 %
===== =====
(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 At and for the Twelve Months Ended
--------------------------------- ----------------------------------
December 31, 2015 September 30, 2015 June 30, 2015 March 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014
----------------- ------------------ ------------- -------------- ----------------- ----------------- -----------------
(Dollars in Thousands)
Net income, as reported* $13,327 $12,888 $11,865 $11,703 $10,875 $49,782 $43,288
======= ======= ======= ======= ======= ======= =======
Average total assets* $5,957,191 $5,790,469 $5,762,620 $5,852,114 $5,757,715 $5,840,749 $5,556,224
Less: Average goodwill and average identified intangible assets, net 148,930 149,669 150,385 151,125 151,932 150,020 153,170
Average tangible assets* $5,808,261 $5,640,800 $5,612,235 $5,700,989 $5,605,783 $5,690,729 $5,403,054
========== ========== ========== ========== ========== ========== ==========
Return on average tangible assets 0.92 % 0.91 % 0.85 % 0.82 % 0.78 % 0.87 % 0.80 %
(annualized)*
Average total stockholders' equity* $667,471 $659,761 $655,223 $648,683 $640,706 $657,841 $630,966
Less: Average goodwill and average identified intangible assets, net 148,930 149,669 150,385 151,125 151,932 150,020 153,170
Average tangible stockholders' equity* $518,541 $510,092 $504,838 $497,558 $488,774 $507,821 $477,796
======== ======== ======== ======== ======== ======== ========
Return on average tangible stockholders' equity (annualized)* 10.28 % 10.11 % 9.40 % 9.41 % 8.90 % 9.80 % 9.06 %
Brookline Bancorp, Inc. stockholders' equity* $667,485 $663,468 $653,516 $651,319 $641,818 $667,485 $641,818
Less:
Goodwill 137,890 137,890 137,890 137,890 137,890 137,890 137,890
Identified intangible assets, net 10,633 11,357 12,082 12,806 13,544 10,633 13,544
------ ------ ------ ------ ------ ------ ------
Tangible stockholders' equity* $518,962 $514,221 $503,544 $500,623 $490,384 $518,962 $490,384
======== ======== ======== ======== ======== ======== ========
Total assets* $6,042,338 $5,839,529 $5,782,934 $5,755,146 $5,800,948 $6,042,338 $5,800,948
Less:
Goodwill 137,890 137,890 137,890 137,890 137,890 137,890 137,890
Identified intangible assets, net 10,633 11,357 12,082 12,806 13,544 10,633 13,544
------ ------ ------ ------ ------ ------ ------
Tangible assets* $5,893,815 $5,690,282 $5,632,962 $5,604,450 $5,649,514 $5,893,815 $5,649,514
========== ========== ========== ========== ========== ========== ==========
Tangible stockholders' equity to tangible assets* 8.81 % 9.04 % 8.94 % 8.93 % 8.68 % 8.81 % 8.68 %
Tangible stockholders' equity* $518,962 $514,221 $503,544 $500,623 $490,384 $518,962 $490,384
======== ======== ======== ======== ======== ======== ========
Number of common shares issued 75,744,445 75,744,445 75,744,445 75,744,445 75,744,445 75,744,445 75,744,445
Less:
Treasury shares 4,861,554 4,861,085 5,048,525 5,042,238 5,040,571 4,861,554 5,040,571
Unallocated ESOP shares 213,066 222,645 232,224 241,803 251,382 213,066 251,382
Unvested restricted shares 486,035 486,999 406,566 418,035 419,702 486,035 419,702
------- ------- ------- ------- ------- ------- -------
Number of common shares outstanding 70,183,790 70,173,716 70,057,130 70,042,369 70,032,790 70,183,790 70,032,790
========== ========== ========== ========== ========== ========== ==========
Tangible book value per common share* $7.39 $7.33 $7.19 $7.15 $7.00 $7.39 $7.00
Allowance for loan and lease losses $56,739 $56,472 $56,398 $55,106 $53,659 $56,739 $53,659
Less:
Allowance for acquired loans and leases losses 1,752 2,048 2,655 2,911 2,848 1,752 2,848
----- ----- ----- ----- ----- ----- -----
Allowance for originated loan and lease losses $54,987 $54,424 $53,743 $52,195 $50,811 $54,987 $50,811
======= ======= ======= ======= ======= ======= =======
Total loans and leases $4,995,540 $4,829,152 $4,729,581 $4,634,594 $4,822,607 $4,995,540 $4,822,607
Less:
Total acquired loans and leases 422,652 457,922 509,028 561,103 590,654 422,652 590,654
------- ------- ------- ------- ------- ------- -------
Total originated loans and leases $4,572,888 $4,371,230 $4,220,553 $4,073,491 $4,231,953 $4,572,888 $4,231,953
========== ========== ========== ========== ========== ========== ==========
Allowance for loan and lease losses related to originated loans and
leases as a percentageof originated loans and leases 1.20 % 1.25 % 1.27 % 1.28 % 1.20 % 1.20 % 1.20 %
(*) Previously reported amounts January 1, 2015have been restated to reflect a retrospective change in accounting principle for investments in qualified affordable housing projects, in accordance with ASU 2014-01.
https://photos.prnewswire.com/prnvar/20150126/171362LOGO
Contact:
Carl M. Carlson
Brookline Bancorp, Inc.
Chief Financial Officer
(617) 425-5331
ccarlson@brkl.com
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SOURCE Brookline Bancorp, Inc.
