BROOKLINE BANCORP, INC. BOSTON, Oct. 19, 2016 /PRNewswire/ -- Brookline Bancorp, Inc. (NASDAQ: BRKL) (the "Company") today announced net income of $13.6 million, or $0.19 per basic and diluted share, for the third quarter of 2016, compared to $12.9 million, or $0.18 per basic and diluted share, for the third 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 and its employees continue to execute on our strategy of high performance for both our customers and our stockholders."
BALANCE SHEET
Total assets at September 30, 2016 increased $83.8 million to $6.4 billion from $6.3 billion at June 30, 2016, and increased $338.0 million from $6.04 billion at December 31, 2015. The increase in total assets of 5.3 percent on an annualized basis during the third quarter of 2016 was driven by increases in loans and leases. At September 30, 2016, total loans and leases were $5.3 billion, representing an increase of $73.3 million from June 30, 2016, and an increase of $336.8 million from December 31, 2015. During the third quarter of 2016, total loans and leases grew 5.6 percent on an annualized basis. Strong loan growth continued in the commercial real estate and commercial loan and lease portfolios, which increased $73.0 million during the third quarter of 2016, or 6.8 percent on an annualized basis.
Investment securities at September 30, 2016 decreased $1.2 million to $601.4 million, representing 9.4 percent of total assets, as compared to $602.6 million, or 9.6 percent of total assets, at June 30, 2016, and decreased approximately $5.6 million from $607.0 million, or 10.0 percent of total assets, at December 31, 2015.
Total deposits at September 30, 2016 increased $79.8 million to $4.6 billion from $4.5 billion at June 30, 2016 and increased $258.9 million from $4.3 billion at December 31, 2015. Core deposits, which consist of demand checking, NOW, savings, and money market accounts, increased $124.7 million from June 30, 2016 and increased $240.7 million from December 31, 2015. The average cost of interest bearing deposits increased slightly to 0.56 percent for the three months ended September 30, 2016 from 0.55 percent for the three months ended June 30, 2016.
Total borrowings at September 30, 2016 remained consistent with June 30, 2016 at $1.0 billion and increased $39.6 million from $983.0 million at December 31, 2015.
The ratio of stockholders' equity to total assets was 10.91 percent at September 30, 2016, as compared to 10.95 percent at June 30, 2016, and 11.05 percent at December 31, 2015, respectively. The ratio of tangible stockholders' equity to tangible assets was 8.82 percent at September 30, 2016 and June 30, 2016, respectively, both as compared to 8.81 percent at December 31, 2015.
NET INTEREST INCOME
Net interest income increased $2.1 million to $52.4 million during the third quarter of 2016 from the quarter ended June 30, 2016, largely as a result of loan growth, a $0.7 million increase in accretion related to acquired loans, and a $0.3 million increase in prepayment fees on loans. The net interest margin increased 4 basis points to 3.48 percent for the three months ended September 30, 2016.
PROVISION FOR CREDIT LOSSES
The Company recorded a provision for credit losses of $2.2 million for the quarter ended September 30, 2016, compared to $2.5 million for the quarter ended June 30, 2016.
Net charge-offs decreased $3.5 million to $0.5 million for the third quarter of 2016 from $4.0 million for the second quarter of 2016. As a result, the ratio of net charge-offs to average loans on an annualized basis decreased to 4 basis points for the third quarter of 2016 from 31 basis points for the second quarter of 2016.
The allowance for loan and lease losses represented 1.10 percent of total loans and leases at September 30, 2016, compared to 1.09 percent at June 30, 2016, and 1.14 percent at December 31, 2015. The allowance for loan and lease losses related to originated loans and leases as a percentage of originated loans and leases was 1.15 percent at September 30, 2016, compared to 1.13 percent at June 30, 2016, and 1.20 percent at December 31, 2015.
NON-INTEREST INCOME
Non-interest income for the quarter ended September 30, 2016 decreased $0.1 million to $5.3 million from $5.4 million for the quarter ended June 30, 2016, primarily driven by a decrease of $0.4 million in loan level derivative income offset by an increase of $0.1 million in deposit fees 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 September 30, 2016 increased $1.1 million to $33.4 million from $32.3 million for the quarter ended June 30, 2016. The Company's efficiency ratio was 57.89 percent at September 30, 2016, compared with 57.97 percent at June 30, 2016.
PROVISION FOR INCOME TAXES
The effective tax rate was 35.4 percent for the three months ended September 30, 2016 and was 35.6 percent for the nine months ended September 30, 2016.
RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY
The return on average assets increased during the third quarter of 2016 to 0.86 percent at September 30, 2016 from 0.81 percent at June 30, 2016. The return on average tangible assets increased to 0.88 percent for the third quarter of 2016 from 0.83 percent for the second quarter of 2016.
The return on average stockholders' equity increased during the third quarter of 2016 to 7.83 percent from 7.38 percent for the second quarter of 2016. The return on average tangible stockholders' equity increased to 9.94 percent for the third quarter of 2016 from 9.40 percent for the second quarter of 2016.
ASSET QUALITY
The ratio of nonperforming loans and leases to total loans and leases was 0.70 percent at September 30, 2016 as compared to 0.63 percent at June 30, 2016. Nonperforming loans and leases increased $4.5 million to $37.6 million at September 30, 2016 from $33.1 million at June 30, 2016. Nonperforming assets at September 30, 2016 increased $4.9 million to $38.7 million, or 0.61 percent of total assets, from $33.8 million, or 0.54 percent of total assets, at June 30, 2016. The increase in nonperforming loans and leases and nonperforming assets was primarily driven by certain taxi medallion loans that were placed on nonaccrual.
DIVIDEND DECLARED
The Company's Board of Directors approved a dividend of $0.09 per share for the quarter ended September 30, 2016. The dividend will be paid on November 18, 2016 to stockholders of record on November 4, 2016.
CONFERENCE CALL
The Company will conduct a conference call/webcast at 1:30 PM Eastern Daylight Time on Thursday, October 20, 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 10093594. 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 $6.4 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
---------------------------------
September 30, June 30, March 31, December 31, September 30,
2016 2016 2016 2015 2015
---- ---- ---- ---- ----
(Dollars In Thousands Except per Share Data)
Earnings Data:
Net interest income $52,350 $50,257 $49,203 $50,078 $48,587
Provision for credit losses 2,215 2,545 2,378 1,520 1,755
Non-interest income 5,329 5,375 6,469 6,063 4,784
Non-interest expense 33,388 32,250 32,053 32,329 31,270
Income before provision for income taxes 22,076 20,837 21,241 22,292 20,346
Net income attributable to Brookline Bancorp, Inc. 13,617 12,654 12,812 13,327 12,888
Performance Ratios:
Net interest margin (1) 3.48 % 3.44 % 3.45 % 3.54 % 3.54 %
Interest-rate spread (1) 3.32 % 3.25 % 3.26 % 3.42 % 3.41 %
Return on average assets 0.86 % 0.81 % 0.84 % 0.89 % 0.89 %
Return on average tangible assets (non-GAAP) 0.88 % 0.83 % 0.86 % 0.92 % 0.91 %
Return on average stockholders' equity 7.83 % 7.38 % 7.57 % 7.99 % 7.81 %
Return on average tangible stockholders' equity (non-GAAP) 9.94 % 9.40 % 9.69 % 10.28 % 10.11 %
Efficiency ratio (2) 57.89 % 57.97 % 57.57 % 57.59 % 58.59 %
Per Common Share Data:
Net income - Basic $0.19 $0.18 $0.18 $0.19 $0.18
Net income - Diluted 0.19 0.18 0.18 0.19 0.18
Cash dividends declared 0.090 0.090 0.090 0.090 0.090
Book value per share (end of period) 9.90 9.82 9.69 9.51 9.45
Tangible book value per share (end of period) (non-GAAP) 7.81 7.73 7.59 7.39 7.33
Stock price (end of period) 12.19 11.03 11.01 11.50 10.14
Balance Sheet:
Total assets $6,380,312 $6,296,502 $6,181,030 $6,042,338 $5,839,529
Total loans and leases 5,332,300 5,259,038 5,130,445 4,995,540 4,829,152
Total deposits 4,564,906 4,485,154 4,393,456 4,306,018 4,144,577
Brookline Bancorp, Inc. stockholders' equity 696,371 689,656 680,417 667,485 663,468
Asset Quality:
Nonperforming assets $38,704 $33,809 $32,470 $20,676 $21,025
Nonperforming assets as a percentage of total assets 0.61 % 0.54 % 0.53 % 0.34 % 0.36 %
Allowance for loan and lease losses $58,892 $57,258 $58,606 $56,739 $56,472
Allowance for loan and lease losses as a percentage of total loans and leases 1.10 % 1.09 % 1.14 % 1.14 % 1.17 %
Net loan and lease charge-offs $520 $4,018 $400 $1,389 $1,599
Net loan and lease charge-offs as a percentage of average loans and leases (annualized) 0.04 % 0.31 % 0.03 % 0.11 % 0.13 %
Capital Ratios:
Stockholders' equity to total assets 10.91 % 10.95 % 11.01 % 11.05 % 11.36 %
Tangible stockholders' equity to tangible assets (non-GAAP) 8.82 % 8.82 % 8.83 % 8.81 % 9.04 %
(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)
September 30, June 30, March 31, December 31, September 30,
2016 2016 2016 2015 2015
---- ---- ---- ---- ----
ASSETS (In Thousands Except Share Data)
Cash and due from banks $32,196 $22,677 $31,127 $28,753 $27,299
Short-term investments 32,351 47,265 42,795 46,736 19,745
------ ------ ------ ------ ------
Total cash and cash equivalents 64,547 69,942 73,922 75,489 47,044
------ ------ ------ ------ ------
Investment securities available-for-sale 524,295 532,967 536,182 513,201 526,764
Investment securities held-to-maturity 77,094 69,590 83,409 93,757 63,097
------ ------ ------ ------ ------
Total investment securities 601,389 602,557 619,591 606,958 589,861
------- ------- ------- ------- -------
Loans and leases held-for-sale 21,109 1,585 3,190 13,383 10,992
Loans and leases:
Commercial real estate loans:
Commercial real estate mortgage 2,038,477 1,974,289 1,958,057 1,875,592 1,810,550
Multi-family mortgage 703,743 721,771 682,317 658,480 614,560
Construction 141,208 144,463 126,024 130,322 138,261
------- ------- ------- ------- -------
Total commercial real estate loans 2,883,428 2,840,523 2,766,398 2,664,394 2,563,371
--------- --------- --------- --------- ---------
Commercial loans and leases:
Commercial 652,316 628,281 616,290 592,531 580,711
Equipment financing 764,647 750,503 721,621 721,890 684,331
Condominium association 53,903 61,962 60,728 59,875 57,562
------ ------ ------ ------ ------
Total commercial loans and leases 1,470,866 1,440,746 1,398,639 1,374,296 1,322,604
--------- --------- --------- --------- ---------
Indirect automobile loans 7,607 9,281 11,220 13,678 16,294
----- ----- ------ ------ ------
Consumer loans:
Residential mortgage 617,065 624,423 617,501 616,449 606,063
Home equity 340,954 333,527 318,859 314,553 308,371
Other consumer 12,380 10,538 17,828 12,170 12,449
------ ------ ------ ------ ------
Total consumer loans 970,399 968,488 954,188 943,172 926,883
------- ------- ------- ------- -------
Total loans and leases 5,332,300 5,259,038 5,130,445 4,995,540 4,829,152
Allowance for loan and lease losses (58,892) (57,258) (58,606) (56,739) (56,472)
------- ------- ------- ------- -------
Net loans and leases 5,273,408 5,201,780 5,071,839 4,938,801 4,772,680
--------- --------- --------- --------- ---------
Restricted equity securities 65,683 64,677 65,438 66,117 75,553
Premises and equipment, net of accumulated depreciation 75,462 76,131 77,128 78,156 77,472
Deferred tax asset 22,894 22,301 24,181 26,817 25,730
Goodwill 137,890 137,890 137,890 137,890 137,890
Identified intangible assets, net of accumulated amortization 8,754 9,377 9,998 10,633 11,357
Other real estate owned and repossessed assets 1,152 751 565 1,343 1,301
Other assets 108,024 109,511 97,288 86,751 89,649
------- ------- ------ ------ ------
Total assets $6,380,312 $6,296,502 $6,181,030 $6,042,338 $5,839,529
========== ========== ========== ========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest-bearing deposits:
Demand checking accounts $889,278 $852,869 $793,195 $799,117 $785,210
Interest-bearing deposits:
NOW accounts 298,629 295,126 286,920 283,972 254,767
Savings accounts 591,156 557,607 555,843 540,788 500,104
Money market accounts 1,679,797 1,628,550 1,649,348 1,594,269 1,540,104
Certificate of deposit accounts 1,106,046 1,151,002 1,108,150 1,087,872 1,064,392
--------- --------- --------- --------- ---------
Total interest-bearing deposits 3,675,628 3,632,285 3,600,261 3,506,901 3,359,367
--------- --------- --------- --------- ---------
Total deposits 4,564,906 4,485,154 4,393,456 4,306,018 4,144,577
--------- --------- --------- --------- ---------
Borrowed funds:
Advances from the FHLBB 900,971 904,685 905,953 861,866 848,913
Subordinated debentures and notes 83,043 83,021 82,978 82,936 82,873
Other borrowed funds 38,639 40,733 39,378 38,227 28,434
------ ------ ------ ------ ------
Total borrowed funds 1,022,653 1,028,439 1,028,309 983,029 960,220
--------- --------- --------- ------- -------
Mortgagors' escrow accounts 8,166 7,419 7,905 7,516 7,996
Accrued expenses and other liabilities 81,670 79,541 64,566 72,289 57,996
------ ------ ------ ------ ------
Total liabilities 5,677,395 5,600,553 5,494,236 5,368,852 5,170,789
--------- --------- --------- --------- ---------
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 616,142 617,738 617,477 616,899 616,252
Retained earnings, partially restricted 129,740 122,469 116,151 109,675 102,684
Accumulated other comprehensive (loss) income 4,896 5,969 3,352 (2,476) 1,191
Treasury stock, at cost;
4,734,512 shares, 4,862,193 shares, 4,861,554 shares, 4,861,554 shares, and 4,861,085 shares, respectively (54,151) (56,215) (56,208) (56,208) (56,202)
Unallocated common stock held by the Employee Stock Ownership Plan;
185,787 shares, 194,880 shares, 203,973 shares, 213,066 shares, and 222,645 shares, respectively (1,013) (1,062) (1,112) (1,162) (1,214)
------ ------ ------ ------ ------
Total Brookline Bancorp, Inc. stockholders' equity 696,371 689,656 680,417 667,485 663,468
------- ------- ------- ------- -------
Noncontrolling interest in subsidiary 6,546 6,293 6,377 6,001 5,272
----- ----- ----- ----- -----
Total stockholders' equity 702,917 695,949 686,794 673,486 668,740
-------
Total liabilities and stockholders' equity $6,380,312 $6,296,502 $6,181,030 $6,042,338 $5,839,529
========== ========== ========== ========== ==========
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
Three Months Ended
------------------
September 30, June 30, March 31, December 31, September 30,
2016 2016 2016 2015 2015
---- ---- ---- ---- ----
(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases $57,858 $55,369 $54,247 $54,814 $52,725
Debt securities 2,822 3,075 2,932 2,936 2,866
Marketable and restricted equity securities 804 729 680 668 1,079
Short-term investments 47 63 39 30 17
--- --- --- --- ---
Total interest and dividend income 61,531 59,236 57,898 58,448 56,687
------ ------ ------ ------ ------
Interest expense:
Deposits 5,112 5,018 4,745 4,554 4,326
Borrowed funds 4,069 3,961 3,950 3,816 3,774
----- ----- ----- ----- -----
Total interest expense 9,181 8,979 8,695 8,370 8,100
----- ----- ----- ----- -----
Net interest income 52,350 50,257 49,203 50,078 48,587
Provision for credit losses 2,215 2,545 2,378 1,520 1,755
----- ----- ----- ----- -----
Net interest income after provision for credit losses 50,135 47,712 46,825 48,558 46,832
------ ------ ------ ------ ------
Non-interest income:
Deposit fees 2,289 2,216 2,145 2,208 2,261
Loan fees 330 287 330 364 205
Loan level derivative income, net 858 1,210 1,629 1,556 900
Gain on sales of loans and leases held-for-sale 588 345 905 614 446
Other 1,264 1,317 1,460 1,321 972
----- ----- ----- ----- ---
Total non-interest income 5,329 5,375 6,469 6,063 4,784
----- ----- ----- ----- -----
Non-interest expense:
Compensation and employee benefits 20,369 19,083 18,727 18,788 17,875
Occupancy 3,411 3,391 3,526 3,482 3,535
Equipment and data processing 3,826 3,898 3,714 3,537 3,600
Professional services 997 962 966 951 984
FDIC insurance 956 843 878 883 929
Advertising and marketing 844 853 861 903 878
Amortization of identified intangible assets 623 621 635 724 725
Other 2,362 2,599 2,746 3,061 2,744
----- ----- ----- ----- -----
Total non-interest expense 33,388 32,250 32,053 32,329 31,270
------ ------ ------ ------ ------
Income before provision for income taxes 22,076 20,837 21,241 22,292 20,346
Provision for income taxes 7,804 7,465 7,599 8,237 6,897
----- ----- ----- ----- -----
Net income before noncontrolling interest in subsidiary 14,272 13,372 13,642 14,055 13,449
Less net income attributable to noncontrolling interest in subsidiary 655 718 830 728 561
--- --- --- --- ---
Net income attributable to Brookline Bancorp, Inc. $13,617 $12,654 $12,812 $13,327 $12,888
======= ======= ======= ======= =======
Earnings per common share:
Basic $0.19 $0.18 $0.18 $0.19 $0.18
Diluted $0.19 $0.18 $0.18 $0.19 $0.18
Weighted average common shares outstanding during the period:
Basic 70,299,722 70,196,950 70,185,356 70,177,382 70,129,056
Diluted 70,450,760 70,388,438 70,341,843 70,318,657 70,240,020
Dividends declared per common share $0.090 $0.090 $0.090 $0.090 $0.090
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
Nine Months Ended September 30,
-------------------------------
2016 2015
---- ----
(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases $167,474 $157,790
Debt securities 8,829 8,480
Marketable and restricted equity securities 2,213 2,094
Short-term investments 149 98
--- ---
Total interest and dividend income 178,665 168,462
------- -------
Interest expense:
Deposits 14,875 12,926
Borrowed funds 11,980 11,249
------ ------
Total interest expense 26,855 24,175
------ ------
Net interest income 151,810 144,287
Provision for credit losses 7,138 5,931
----- -----
Net interest income after provision for credit losses 144,672 138,356
------- -------
Non-interest income:
Deposit Fees 6,650 6,522
Loan Fees 977 818
Loan level derivative income, net 3,697 1,841
Gain on sales of loans and leases held-for-sale 1,986 1,594
Other 3,893 3,346
-----
Total non-interest income 17,203 14,121
------ ------
Non-interest expense:
Compensation and employee benefits 58,179 52,484
Occupancy 10,328 10,444
Equipment and data processing 11,468 11,300
Professional services 2,925 3,241
FDIC insurance 2,677 2,627
Advertising and marketing 2,558 2,449
Amortization of identified intangible assets 1,879 2,187
Other 7,707 8,316
----- -----
Total non-interest expense 97,721 93,048
------ ------
Income before provision for income taxes 64,154 59,429
Provision for income taxes 22,868 21,116
------ ------
Net income before noncontrolling interest in subsidiary 41,286 38,313
Less net income attributable to noncontrolling interest in subsidiary 2,203 1,857
----- -----
Net income attributable to Brookline Bancorp, Inc. $39,083 $36,456
======= =======
Earnings per common share:
Basic $0.56 $0.52
Diluted $0.56 $0.52
Weighted average common shares outstanding during the period:
Basic 70,228,127 70,071,999
Diluted 70,394,465 70,207,983
Dividends declared per common share $0.270 $0.265
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,
2016 2016 2016 2015 2015
---- ---- ---- ---- ----
(Dollars in Thousands)
NONPERFORMING ASSETS:
Loans and leases accounted for on a nonaccrual basis:
Commercial real estate mortgage $1,688 $2,408 $5,440 $5,482 $3,155
Multi-family mortgage 1,418 1,446 1,446 291 309
Total commercial real estate loans 3,106 3,854 6,886 5,773 3,464
----- ----- ----- ----- -----
Commercial 24,051 17,944 15,050 6,264 8,326
Equipment financing 6,652 6,947 5,391 2,610 2,896
----- ----- ----- ----- -----
Total commercial loans and leases 30,703 24,891 20,441 8,874 11,222
------ ------ ------ ----- ------
Indirect automobile loans 179 248 308 675 629
Residential mortgage 1,749 2,048 2,132 2,225 2,539
Home equity 1,780 1,976 2,104 1,757 1,818
Other consumer 35 41 34 29 52
--- --- --- --- ---
Total consumer loans 3,564 4,065 4,270 4,011 4,409
----- ----- ----- ----- -----
Total nonaccrual loans and leases 37,552 33,058 31,905 19,333 19,724
------ ------ ------ ------ ------
Other real estate owned 367 407 408 729 1,149
Other repossessed assets 785 344 157 614 152
--- --- --- --- ---
Total nonperforming assets $38,704 $33,809 $32,470 $20,676 $21,025
======= ======= ======= ======= =======
Loans and leases past due greater than 90 days and still accruing $8,275 $4,151 $3,512 $8,690 $8,792
====== ====== ====== ====== ======
Troubled debt restructurings on accrual 16,303 15,693 16,697 17,953 17,746
Troubled debt restructurings on nonaccrual 15,715 15,621 14,614 4,965 5,960
------ ------ ------ ----- -----
Total troubled debt restructurings $32,018 $31,314 $31,311 $22,918 $23,706
======= ======= ======= ======= =======
Nonperforming loans and leases as a percentage of total loans and leases 0.70 % 0.63 % 0.62 % 0.39 % 0.41 %
Nonperforming assets as a percentage of total assets 0.61 % 0.54 % 0.53 % 0.34 % 0.36 %
PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:
Allowance for loan and lease losses at beginning of period $57,258 $58,606 $56,739 $56,472 $56,398
Charge-offs (839) (4,324) (875) (1,929) (1,931)
Recoveries 319 306 475 540 332
--- --- --- --- ---
Net charge-offs (520) (4,018) (400) (1,389) (1,599)
Provision for loan and lease losses 2,154 2,670 2,267 1,656 1,673
----- ----- ----- ----- -----
Allowance for loan and lease losses at end of period $58,892 $57,258 $58,606 $56,739 $56,472
======= ======= ======= ======= =======
Allowance for loan and lease losses as a percentage of total loans and leases 1.10 % 1.09 % 1.14 % 1.14 % 1.17 %
Allowance for loan and lease losses related to originated loans and leases as
a percentage of originated loans and leases (non-GAAP) 1.15 % 1.13 % 1.20 % 1.20 % 1.25 %
NET CHARGE-OFFS:
Commercial real estate loans $50 $1,153 $331 $ - $ -
Commercial loans and leases 375 2,316 64 1,302 1,276
Indirect automobile loans 7 (15) 13 3 117
Consumer loans 88 564 (8) 84 206
--- --- --- --- ---
Total net charge-offs $520 $4,018 $400 $1,389 $1,599
==== ====== ==== ====== ======
Net loan and lease charge-offs as a percentage of average loans and leases
(annualized) 0.04 % 0.31 % 0.03 % 0.11 % 0.13 %
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Average Yields / Costs (Unaudited)
Three Months Ended
------------------
September 30, 2016 June 30, 2016 September 30, 2015
------------------ ------------- ------------------
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) $604,394 $2,910 1.93 % $605,383 $3,157 2.09 % $587,804 $2,904 1.98 %
Marketable and restricted equity securities (2) 66,981 836 4.99 % 66,422 732 4.41 % 76,530 1,111 5.81 %
Short-term investments 36,273 47 0.51 % 60,570 63 0.42 % 36,163 17 0.19 %
------ --- ------ --- ------ ---
Total investments 707,648 3,793 2.14 % 732,375 3,952 2.16 % 700,497 4,032 2.30 %
------- ----- ------- ----- ------- -----
Loans and Leases:
Commercial real estate loans (3) 2,872,733 29,470 4.10 % 2,784,627 28,278 4.06 % 2,531,729 26,739 4.22 %
Commercial loans (3) 717,265 7,130 3.90 % 689,696 6,649 3.82 % 636,756 6,570 4.05 %
Equipment financing (3) 759,622 12,189 6.42 % 730,193 11,751 6.44 % 664,010 11,300 6.81 %
Indirect automobile loans (3) 8,466 103 4.83 % 10,255 109 4.27 % 17,872 182 4.05 %
Residential mortgage loans (3) 620,741 5,513 3.55 % 626,249 5,633 3.60 % 613,678 5,437 3.54 %
Other consumer loans (3) 348,050 3,707 4.22 % 340,796 3,200 3.76 % 315,402 2,707 3.40 %
------- ----- ------- ----- ------- -----
Total loans and leases 5,326,877 58,112 4.36 % 5,181,816 55,620 4.29 % 4,779,447 52,935 4.43 %
--------- ------ --------- ------ --------- ------
Total interest-earning assets 6,034,525 61,905 4.10 % 5,914,191 59,572 4.03 % 5,479,944 56,967 4.16 %
--------- ------ --------- ------ --------- ------
Allowance for loan and lease losses (58,032) (58,789) (56,833)
Non-interest-earning assets 383,604 382,061 367,358
------- ------- -------
Total assets $6,360,097 $6,237,463 $5,790,469
========== ========== ==========
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts $295,762 52 0.07 % $294,484 53 0.07 % $246,163 44 0.07 %
Savings accounts 566,192 318 0.22 % 554,474 336 0.24 % 516,877 257 0.20 %
Money market accounts 1,678,937 1,905 0.45 % 1,655,843 1,867 0.45 % 1,550,477 1,664 0.43 %
Certificates of deposit 1,112,831 2,837 1.01 % 1,132,272 2,762 0.98 % 1,043,418 2,361 0.90 %
--------- ----- --------- ----- --------- -----
Total interest-bearing deposits 3,653,722 5,112 0.56 % 3,637,073 5,018 0.55 % 3,356,935 4,326 0.51 %
--------- ----- --------- ----- --------- -----
Borrowings
Advances from the FHLBB 921,396 2,778 1.18 % 879,499 2,678 1.20 % 801,379 2,495 1.22 %
Subordinated debentures and notes 83,036 1,259 6.07 % 82,997 1,258 6.06 % 82,866 1,251 6.04 %
Other borrowed funds 46,417 32 0.27 % 41,305 25 0.24 % 32,134 28 0.34 %
------ --- ------ --- ------ ---
Total borrowings 1,050,849 4,069 1.52 % 1,003,801 3,961 1.56 % 916,379 3,774 1.61 %
--------- ----- --------- ----- ------- -----
Total interest-bearing liabilities 4,704,571 9,181 0.78 % 4,640,874 8,979 0.78 % 4,273,314 8,100 0.75 %
--------- ----- --------- ----- --------- -----
Non-interest-bearing liabilities:
Demand checking accounts 863,854 825,880 793,785
Other non-interest-bearing liabilities 90,025 78,497 58,414
------ ------ ------
Total liabilities 5,658,450 5,545,251 5,125,513
Brookline Bancorp, Inc. stockholders' equity 695,205 685,996 659,761
Noncontrolling interest in subsidiary 6,442 6,216 5,195
----- ----- -----
Total liabilities and equity $6,360,097 $6,237,463 $5,790,469
========== ========== ==========
Net interest income (tax-equivalent basis) /Interest-rate spread (4) 52,724 3.32 % 50,593 3.25 % 48,867 3.41 %
===== ===== =====
Less adjustment of tax-exempt income 374 336 280
--- --- ---
Net interest income $52,350 $50,257 $48,587
======= ======= =======
Net interest margin (5) 3.48 % 3.44 % 3.54 %
===== ===== =====
(1) Tax-exempt income on debt securities, equity securities and revenue bonds included in commercial real estate loans is included on a tax-equivalent basis.
(2) Average balances include unrealized gains (losses) on investment securities. Dividend payments may not be consistent and average yield on equity securities may vary from month to month.
(3) Loans on nonaccrual status are included in the average balances.
(4) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
(5) Net interest margin represents net interest income (tax-equivalent basis) divided by average interest-earning assets.
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Average Yields / Costs (Unaudited)
Nine Months Ended
-----------------
September 30, 2016 September 30, 2015
------------------ ------------------
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) $604,603 $9,078 2.00 % $577,967 $8,529 1.97 %
Marketable and restricted equity securities (2) 66,764 2,247 4.49 % 76,218 2,126 3.72 %
Short-term investments 46,198 149 0.43 % 57,197 98 0.23 %
------ --- ------ ---
Total investments 717,565 11,474 2.13 % 711,382 10,753 2.02 %
------- ------ ------- ------
Loans and Leases:
Commercial real estate loans (3) 2,785,472 85,014 4.07 % 2,504,739 79,375 4.23 %
Commercial loans (3) 692,634 20,430 3.88 % 629,115 19,471 4.09 %
Equipment financing (3) 738,990 35,690 6.44 % 634,310 32,637 6.86 %
Indirect automobile loans (3) 10,398 365 4.68 % 106,210 2,542 3.20 %
Residential mortgage loans (3) 624,102 16,705 3.57 % 593,371 16,005 3.60 %
Other consumer loans (3) 339,672 10,024 3.93 % 307,878 8,373 3.63 %
------- ------ ------- -----
Total loans and leases 5,191,268 168,228 4.32 % 4,775,623 158,403 4.42 %
--------- ------- --------- -------
Total interest-earning assets 5,908,833 179,702 4.05 % 5,487,005 169,156 4.11 %
--------- ------- --------- -------
Allowance for loan and lease losses (57,982) (55,536)
Non-interest-earning assets 379,761 370,038
------- -------
Total assets $6,230,612 $5,801,507
========== ==========
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts $289,908 156 0.07 % $244,253 132 0.07 %
Savings accounts 561,798 998 0.24 % 537,606 793 0.20 %
Money market accounts 1,654,700 5,547 0.45 % 1,544,085 5,173 0.45 %
Certificates of deposit 1,107,600 8,174 0.99 % 1,042,111 6,828 0.88 %
--------- ----- --------- -----
Total interest-bearing deposits 3,614,006 14,875 0.55 % 3,368,055 12,926 0.51 %
--------- ------ --------- ------
Borrowings
Advances from the FHLBB 888,406 8,125 1.20 % 841,196 7,414 1.16 %
Subordinated debentures and notes 82,996 3,773 6.06 % 82,826 3,749 6.03 %
Other borrowed funds 42,463 82 0.26 % 34,808 86 0.33 %
------ --- ------ ---
Total borrowings 1,013,865 11,980 1.55 % 958,830 11,249 1.55 %
--------- ------ ------- ------
Total interest-bearing liabilities 4,627,871 26,855 0.78 % 4,326,885 24,175 0.75 %
--------- ------ --------- ------
Non-interest-bearing liabilities:
Demand checking accounts 829,659 757,811
Other non-interest-bearing liabilities 80,774 57,328
------ ------
Total liabilities 5,538,304 5,142,024
Brookline Bancorp, Inc. stockholders' equity 686,134 654,596
Noncontrolling interest in subsidiary 6,174 4,887
----- -----
Total liabilities and equity $6,230,612 $5,801,507
========== ==========
Net interest income (tax-equivalent basis) /Interest-rate spread (4) 152,847 3.27 % 144,981 3.36 %
===== =====
Less adjustment of tax-exempt income 1,037 694
----- ---
Net interest income $151,810 $144,287
======== ========
Net interest margin (5) 3.46 % 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.
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Non-GAAP Financial Information (Unaudited)
At and for the Three Months Ended
---------------------------------
September 30, 2016 June 30, 2016 March 31, 2016 December 31, 2015 September 30, 2015
------------------ ------------- -------------- ----------------- ------------------
(Dollars in Thousands)
Net income, as reported $13,617 $12,654 $12,812 $13,327 $12,888
======= ======= ======= ======= =======
Average total assets $6,360,097 $6,237,463 $6,092,858 $5,957,191 $5,790,469
Less: Average goodwill and average identified intangible assets, net 146,997 147,619 148,248 148,930 149,669
Average tangible assets $6,213,100 $6,089,844 $5,944,610 $5,808,261 $5,640,800
========== ========== ========== ========== ==========
Return on average tangible assets (annualized) 0.88 % 0.83 % 0.86 % 0.92 % 0.91 %
Average total stockholders' equity $695,205 $685,996 $677,101 $667,471 $659,761
Less: Average goodwill and average identified intangible assets, net 146,997 147,619 148,248 148,930 149,669
Average tangible stockholders' equity $548,208 $538,377 $528,853 $518,541 $510,092
======== ======== ======== ======== ========
Return on average tangible stockholders' equity (annualized) 9.94 % 9.40 % 9.69 % 10.28 % 10.11 %
Brookline Bancorp, Inc. stockholders' equity $696,371 $689,656 $680,417 $667,485 $663,468
Less:
Goodwill 137,890 137,890 137,890 137,890 137,890
Identified intangible assets, net 8,754 9,377 9,998 10,633 11,357
----- ----- ----- ------ ------
Tangible stockholders' equity $549,727 $542,389 $532,529 $518,962 $514,221
======== ======== ======== ======== ========
Total assets $6,380,312 $6,296,502 $6,181,030 $6,042,338 $5,839,529
Less:
Goodwill 137,890 137,890 137,890 137,890 137,890
Identified intangible assets, net 8,754 9,377 9,998 10,633 11,357
----- ----- ----- ------ ------
Tangible assets $6,233,668 $6,149,235 $6,033,142 $5,893,815 $5,690,282
========== ========== ========== ========== ==========
Tangible stockholders' equity to tangible assets 8.82 % 8.82 % 8.83 % 8.81 % 9.04 %
Tangible stockholders' equity $549,727 $542,389 $532,529 $518,962 $514,221
======== ======== ======== ======== ========
Number of common shares issued 75,744,445 75,744,445 75,744,445 75,744,445 75,744,445
Less:
Treasury shares 4,734,512 4,862,193 4,861,554 4,861,554 4,861,085
Unallocated ESOP shares 185,787 194,880 203,973 213,066 222,645
Unvested restricted shares 476,938 484,066 486,035 486,035 486,999
------- ------- ------- ------- -------
Number of common shares outstanding 70,347,208 70,203,306 70,192,883 70,183,790 70,173,716
========== ========== ========== ========== ==========
Tangible book value per common share $7.81 $7.73 $7.59 $7.39 $7.33
Allowance for loan and lease losses $58,892 $57,258 $58,606 $56,739 $56,472
Less:
Allowance for acquired loans and leases losses 1,640 2,178 1,938 1,752 2,048
----- ----- ----- ----- -----
Allowance for originated loan and lease losses $57,252 $55,080 $56,668 $54,987 $54,424
======= ======= ======= ======= =======
Total loans and leases $5,332,300 $5,259,038 $5,130,445 $4,995,540 $4,829,152
Less:
Total acquired loans and leases 346,377 371,986 395,782 422,652 457,922
------- ------- ------- ------- -------
Total originated loans and leases $4,985,923 $4,887,052 $4,734,663 $4,572,888 $4,371,230
========== ========== ========== ========== ==========
Allowance for loan and lease losses related to originated loans and leases as a
percentage of originated loans and leases 1.15 % 1.13 % 1.20 % 1.20 % 1.25 %
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SOURCE Brookline Bancorp, Inc.
