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Brookline Bancorp Announces Third Quarter Net Income of $11.4 Million, EPS of $0.16

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BROOKLINE, Mass.--(BUSINESS WIRE)--

Brookline Bancorp, Inc. (NASDAQ: BRKL) today reported net income of $11.4 million, or $0.16 fully diluted earnings per share (EPS), for the quarter ended September 30, 2012. Net income for the nine months ended September 30, 2012 was $25.3 million, or $0.36 fully diluted EPS, compared to $20.5 million, or $0.35 fully diluted EPS, for the first nine months of 2011.

Paul Perrault, President and Chief Executive Officer of Brookline Bancorp, Inc., stated: “Our core business fundamentals remain strong, with continued growth in loans and deposits in the third quarter. Net interest income has benefited from that growth and I'm happy to report that provisions for loan and lease losses have returned to normal levels. The second phase of our core system conversion was successful and we are looking forward to moving into our new headquarters over the weekend.”

NET INTEREST INCOME

Net interest income for the third quarter 2012 increased $3.6 million to $46.4 million from $42.8 million in the second quarter of 2012 and $27.9 million in the third quarter 2011 as a result of the acquisition of Bancorp Rhode Island. An increase of $3.1 million in interest income on loans and leases accounts for the majority of the $3.6 million increase, with an increase in investment income accounting for another $0.4 million of the increase in net interest income. Interest expense was flat for the third quarter 2012 as compared to the second quarter. Included in interest income on loans and leases is $1.4 million of periodic yield adjustments on acquired loans as required under GAAP. The remaining $1.7 million increase in interest income on loans and leases is largely driven by growth in the lending portfolios. Net interest income for the first nine months of 2012 increased to $132.8 million from $81.7 million in the first nine months of 2011.

Net interest margin for the third quarter 2012 was 4.00 percent, up from 3.81 percent at June 30, 2012. The inclusion of the $1.4 million of yield adjustments in income accounted for 14 basis points of the 19 basis-point increase in net interest margin for the third quarter 2012. The normalized net interest margin of 3.86 percent is up from 3.81 percent at June 30, 2012 largely as a result of Brookline Bancorp's continuing efforts to maintain loan yields in a persistently challenging interest-rate environment.

BALANCE SHEET

Total assets at September 30, 2012 grew to $5.1 billion, an annualized increase of 7.2 percent from the prior quarter and 60.3 percent from September 30, 2011.

The loan and lease portfolio grew to $4.1 billion as of September 30, 2012, up 13.3 percent annualized from the prior quarter and 14.2 percent annualized from December 31, 2011, after adjustment for the $1.1 billion in loans and leases acquired from Bancorp Rhode Island, Inc., on January 1, 2012. The Company continued to benefit from strong growth in its commercial real estate and commercial loan and lease portfolios, which reached $2.8 billion, or 67.4 percent of total loans, at September 30, 2012. The commercial real estate and commercial loan and lease portfolios increased 18.1 percent annualized during the third quarter 2012 and 21.5 percent annualized for the first nine months of 2012, after adjustment for the $0.8 billion in commercial real estate and commercial loans and leases acquired from Bancorp Rhode Island, to $2.8 billion. These increases offset the annualized 4.7 percent decline from June 30, 2012 to September 30, 2012 in the indirect automobile portfolio, a decline that reflected the Company's selectiveness in the interest rates at which it is willing to lend in a highly competitive market.

Deposits of $3.6 billion at September 30, 2012 were up 5.3 percent annualized from June 30, 2012 and 63.7 percent from September 30, 2011. Core deposits, which increased from 70.2 percent to 70.8 percent of deposits quarter-to-quarter, increased 8.7 percent annualized in the third quarter 2012. Demand checking accounts grew at an annualized rate of 32.3 percent during the quarter ended September 30, 2012. Total borrowings increased 17.2 percent on an annualized basis to $0.8 billion at September 30, 2012.

Cash and cash equivalents were $76.3 million as of September 30, 2012 as compared to $217.1 million as of June 30, 2012, a decrease that reflects the redeployment of cash to fund loan growth and security reinvestment efforts to reduce further pre-payment risk. As a result, investment securities available-for-sale of $466.8 million increased 21.4 percent from June 30, 2012 to September 30, 2012, with total investment securities at 10.6 percent of total assets.

Stockholders' equity to total assets was 11.97 percent at September 30, 2012. The tangible stockholders' equity to tangible assets ratio remained relatively constant at 9.08 percent at September 30, 2012 when compared with 9.07 percent at June 30, 2012 and declined from 14.49 percent at September 30, 2011 as a result of the Brookline Bancorp's acquisition of Bancorp Rhode Island.

NON-INTEREST INCOME

Non-interest income was $3.8 million for the third quarter 2012, down $0.9 million from the second quarter 2012, in part, as a result of the Company waiving certain deposit fees during the month of the core system conversion and, in part, as a result of a reduction of late fee income on several large loans that paid off during the quarter. Additionally, gains on sales of investment securities in the third quarter decreased $0.8 million as compared to the second quarter, which included $0.8 million of gains on sales of investment securities in connection with a partial restructuring of the investment portfolios. Non-interest income was $12.1 million for the first nine months of 2012, up $8.5 million from the first nine months of 2011. The growth in the first nine months of 2012 was primarily driven by $7.9 million of non-interest income attributable to Bancorp Rhode Island.

NON-INTEREST EXPENSE AND TAX PROVISION

Non-interest expense of $30.4 million in the third quarter 2012 increased $1.8 million from the second quarter 2012 and $13.4 million from the third quarter 2011. The increase from third quarter 2011 to third quarter 2012 reflects the Company's acquisition of Bancorp Rhode Island. Although compensation expense increased $0.9 million in the third quarter 2012, it remained consistent with compensation expense as reported in the first quarter 2012 despite business and infrastructure growth. This increase in compensation quarter-to-quarter was offset by a decrease of $0.6 million in professional services and a $0.3 million decline in FDIC insurance premiums quarter-to-quarter. Equipment and data processing expense for the quarter ended September 30, 2012 increased $0.4 million, largely as a result of software license termination fees. Other non-interest expense increased $1.3 million on a linked quarter basis reflecting operating expenses related to the Company's continued migration to standardized operating and financial reporting platforms.

The tax provision benefited, in part, from the inclusion of approximately $0.3 million in additional federal tax credits for the refurbishment of the Company's new headquarters.

ASSET QUALITY

Asset quality remains strong. Nonperforming loans and leases increased slightly from $21.1 million at June 30, 2012 to $21.3 million at September 30, 2012. However, due to growth in the loan and lease portfolio, the ratio of nonperforming loans to total loans and leases decreased slightly from 0.52 percent at June 30, 2012 to 0.51 percent at September 30, 2012. Nonperforming assets at September 30, 2012 totaled $23.7 million or 0.47 percent of total assets, down from $23.8 million, or 0.48 percent of total assets, at June 30, 2012.

The provision for loan and lease losses was $3.0 million for the third quarter 2012, down from $6.7 million in the second quarter 2012, and up from $0.9 million in the third quarter 2011. Net charge-offs for the third quarter 2012 were $1.5 million, or 0.15 percent of average loans and leases on an annualized basis, compared to $3.7 million, or 0.37 percent of average loans and leases, in the second quarter 2012, and $0.6 million, or 0.09 percent of average loans and leases, for the third quarter 2011.

The allowance for loan and lease losses was $38.9 million at September 30, 2012, compared to $37.4 million at June 30, 2012 and $31.1 million at September 30, 2011. The allowance for loan and lease losses as a percent of total originated and acquired loans and leases was 0.94 percent at September 30, 2012, compared to 0.93 percent at June 30, 2012 and 1.17 percent at September 30, 2011. The allowance for loan and lease losses as a percent of originated loans and leases was 1.30 percent at September 30, 2012, as compared to 1.33 percent at June 30, 2012.

DIVIDEND DECLARED

The Company's Board of Directors approved a dividend of $0.085 per share. The dividend will be paid on November 23, 2012, to shareholders of record on November 9, 2012.

CONFERENCE CALL

The Company will conduct a conference call/webcast at 1:30 pm eastern time on Thursday, October 25, 2012 to discuss the results for the quarter, business highlights and outlook. The call can be accessed by dialing 877-317-6789 (United States) or 412-317-6789 (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 playback is 10019385. The call will be available live or in a recorded version on the Company's website under “Investor Relations” at www.brooklinebank.com.

ABOUT BROOKLINE BANCORP, INC.

Brookline Bancorp, Inc., a bank holding company with approximately $5.1 billion in assets and 44 branches throughout Massachusetts and Rhode Island, is headquartered in Brookline, Massachusetts and operates as the holding company for Brookline Bank, Bank Rhode Island, and First Ipswich Bank. The Company provides commercial and retail banking services, and cash management and investment services to customers throughout Central New England. More information about Brookline Bancorp, Inc. and its banks can be found at the following websites: www.brooklinebank.com, www.bankri.com, and www.fnbi.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. 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 GAAP as set forth by the FASB 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 net earnings from operations, tangible book value per common share and tangible stockholders' equity to tangible assets. 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 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)
 

As of and for the Three Months
Ended September 30,

 

As of and for the Nine Months
Ended September 30,

2012 2011 2012 2011
(In Thousands Except Per Share Data)
 
Earnings Data:
Net interest income $ 46,411 $ 27,948 $ 132,805 $ 81,686
Provision for credit losses 2,862 891 12,787 2,789
Non-interest income 3,785 928 12,101 3,572
Non-interest expense 30,436 17,009 91,507 46,405
Income before income taxes 16,898 10,976 40,612 36,064
Net income attributable to Brookline Bancorp, Inc. 11,401 6,275 25,279 20,543
 
Performance Ratios:
Net interest margin (1) 4.00 % 3.74 % 3.88 % 3.75 %
Interest rate spread (1) 3.83 % 3.48 % 3.70 % 3.48 %
Return on average assets 0.90 % 0.80 % 0.68 % 0.91 %
Return on average stockholders' equity 7.53 % 5.00 % 5.63 % 5.48 %
 
Per Common Share Data:
Net income — Basic $ 0.16 $ 0.11 $ 0.36 $ 0.35
Net income — Diluted 0.16 0.11 0.36 0.35
Cash dividends declared 0.085 0.085 0.255 0.255
Book value per share (end of period) 8.61 8.48 8.61 8.48
Tangible book value per share (end of period) 6.32 7.60 6.32 7.60
Stock price (end of period) 8.82 7.71 8.82 7.71
 
(1) Calculated on a fully tax-equivalent basis.
 
 
At or for the Three Months Ended
Sep 30, 2012   Jun 30, 2012 Mar 31, 2012   Dec 31, 2011 Sep 30, 2011
(Dollars in Thousands)
Balance Sheet:
Total assets $ 5,061,444 $ 4,972,381 $ 4,877,124 $ 3,299,013 $ 3,157,498
Total loans and leases 4,146,315

 

4,013,129 3,935,518

 

2,720,821

 

2,662,076
Total deposits 3,568,016 3,521,206 3,459,333 2,252,331 2,179,605
Brookline Bancorp, Inc. stockholders' equity 605,962 598,865 597,531 503,602 501,890
 
Asset Quality:
Nonperforming assets $ 23,675 $ 23,831 $ 14,648 $ 8,796 $ 10,486
Nonperforming assets as a percentage of total assets 0.47 % 0.48 % 0.30 % 0.27 % 0.33 %
Allowance for loan and lease losses $ 38,913 $ 37,431 $ 34,428 $ 31,703 $ 31,128
Allowance for loan and lease losses as a percentage
of total loans and leases 0.94 % 0.93 % 0.87 % 1.17 % 1.17 %
Net loan and lease charge-offs $ 1,539 $ 3,675 $ 522 $ 267 $ 610
Net loan and lease charge-offs as a percentage
of average loans and leases (annualized) 0.15 % 0.37 % 0.05 % 0.04 % 0.09 %
 
Capital Ratios:
Stockholders' equity to total assets 11.97 % 12.04 % 12.25 % 15.27 % 15.90 %
Tangible stockholders' equity to tangible assets 9.08 % 9.07 % 9.18 % 13.93 % 14.49 %

                   
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets (Unaudited)
 
September 30, June 30, March 31, December 31, September 30,
2012 2012 2012 2011 2011
(In Thousands Except Share Data)
ASSETS
Cash and due from banks $ 41,617 $ 118,411 $ 88,884 $ 56,513 $ 22,919
Short-term investments   34,655     98,677     44,382     49,783     82,962  
Total cash and cash equivalents   76,272     217,088     133,266     106,296     105,881  
Investment securities available-for-sale 466,822 384,533 461,498 217,431 253,510
Restricted equity securities 68,661 61,291 53,554 39,283 39,283
Other securities   500     500     500     -     -  
Total securities   535,983     446,324     515,552     256,714     292,793  
Loans and leases:
Commercial real estate loans:
Commercial real estate mortgage 1,262,411

1,221,202

1,200,412

748,736 716,338
Multi-family mortgage 628,162 612,213 596,285 481,459 481,066
Construction   86,345     88,759     77,487     40,798     34,158  
Total commercial real estate   1,976,918    

1,922,174

   

1,874,184

    1,270,993     1,231,562  
Commercial loans and leases:
Commercial 346,744

319,867

309,338

150,895 156,402
Equipment financing 426,597 387,093 367,206 246,118 232,483
Condominium association   43,732     43,596     45,872     46,953     43,862  
Total commercial loans and leases   817,073    

750,556

   

722,416

    443,966     432,747  
Indirect automobile   574,279     581,063     578,622     573,350     571,705  
Consumer loans:
Residential mortgage 507,856 493,074 490,812 350,213 346,983
Home equity 263,194 260,623 262,591 76,527 73,831
Other consumer   6,995     5,639     6,893     5,772     5,248  
Total consumer loans   778,045     759,336     760,296     432,512     426,062  
Total loans and leases 4,146,315 4,013,129 3,935,518 2,720,821 2,662,076
Allowance for loan and lease losses   (38,913 )   (37,431 )   (34,428 )   (31,703 )   (31,128 )
Net loans and leases   4,107,402     3,975,698     3,901,090     2,689,118     2,630,948  
Premises and equipment, net 66,814

 

56,248 48,908 38,495 35,859
Building held-for-sale 6,046 6,046 6,046 - -
Deferred tax asset 27,354 25,656 24,647 12,681 11,840
Goodwill, net 137,890

 

137,890 138,914 45,799 46,203
Identified intangible assets, net of accumulated amortization 23,307 24,578 25,849 5,214 5,591
Other real estate owned and repossessed assets, net 2,386 2,765 2,647 1,266 2,949
Monies in escrow – Bancorp Rhode Island, Inc. acquisition - - - 112,983 -
Other assets   77,990     80,088     80,205     30,447     25,434  
Total assets $ 5,061,444   $ 4,972,381   $ 4,877,124   $ 3,299,013   $ 3,157,498  
 
LIABILITIES AND EQUITY
Deposits:
Demand checking accounts $ 590,189 $ 546,036 $ 529,945 $ 225,284 $ 214,219
NOW accounts 183,478 185,234 181,299 110,220 116,206
Savings accounts 520,614 503,507 511,736 164,744 165,356
Money market accounts 1,231,206 1,236,967 1,174,805 946,411 875,877
Certificate of deposit accounts   1,042,529     1,049,462     1,061,548     805,672     807,947  
Total deposits   3,568,016     3,521,206     3,459,333     2,252,331     2,179,605  
Borrowed funds:
Advances from the FHLBB 771,110 733,394 698,671 498,570 437,974
Other borrowed funds   57,146     60,707     59,865     8,349     6,947  
Total borrowed funds   828,256     794,101     758,536     506,919     444,921  
Mortgagors' escrow accounts 7,066 6,942 7,156 6,513 6,943
Accrued expenses and other liabilities   47,889     47,328     50,883     26,248     21,042  
Total liabilities   4,451,227     4,369,577     4,275,908     2,792,011     2,652,511  
 
Equity:
Brookline Bancorp, Inc. stockholders' equity:
Preferred stock, $0.01 par value; 50,000,000 shares
authorized; none issued - - - - -
Common stock, $0.01 par value; 200,000,000 shares authorized;
75,749,819 shares, 75,414,713 shares, 75,585,504 shares,
64,597,180 shares and 64,580,180 shares issued, respectively 754 754 754 644 644
Additional paid-in capital 618,176 618,184 618,031 525,171 525,012
Retained earnings, partially restricted 47,451 42,006 40,398 39,993 37,926
Accumulated other comprehensive income 3,569 1,969 2,457 1,963 2,540
Treasury stock, at cost; 5,373,733 shares (62,107 ) (62,107 ) (62,107 ) (62,107 ) (62,107 )
Unallocated common stock held by ESOP; 344,991 shares,
356,064 shares, 367,137 shares, 378,215 shares
and 401,316 shares, respectively   (1,881 )   (1,941 )   (2,002 )   (2,062 )   (2,125 )
Total Brookline Bancorp, Inc. stockholders' equity   605,962     598,865     597,531     503,602     501,890  
Noncontrolling interest in subsidiary   4,255     3,939     3,685     3,400     3,097  
Total equity   610,217     602,804     601,216     507,002     504,987  
Total liabilities and equity $ 5,061,444   $ 4,972,381   $ 4,877,124   $ 3,299,013   $ 3,157,498  

                   
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
 
Three Months Ended Sept. 30, Nine Months Ended Sept. 30,
2012 2011 2012 2011
(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases $ 53,271 $ 34,028 $ 153,049 $ 99,438
Debt securities 1,949 1,487 6,719 4,998
Short-term investments 71 27 166 77
Marketable and restricted equity securities   103     48     291     141  
Total interest and dividend income   55,394     35,590     160,225     104,654  
 
Interest expense:
Deposits 5,375 4,971 16,355 15,003
Borrowed funds and subordinated debt   3,608     2,671     11,065     7,965  
Total interest expense   8,983     7,642     27,420     22,968  
 
Net interest income 46,411 27,948 132,805 81,686
Provision for credit losses   2,862     891     12,787     2,789  
Net interest income after provision for credit losses   43,549     27,057     120,018     78,897  
 
Non-interest income:
Fees, charges and other income 3,858 1,428 11,759 3,992
Loss from investments in affordable housing projects (73 ) (500 ) (455 ) (500 )
Gain on sales of securities, net   -     -     797     80  
Total non-interest income   3,785     928     12,101     3,572  
 
Non-interest expense:
Compensation and employee benefits 14,664 8,091 43,125 22,295
Occupancy 2,673 1,637 7,852 4,510
Equipment and data processing 4,072 2,362 11,288 6,727
Professional services 1,932 1,406 10,939 4,055
FDIC insurance 973 478 3,123 1,236
Advertising and marketing 689 482 2,166 1,392
Amortization of identified intangible assets 1,271 443 3,886 1,193
Other   4,162     2,110     9,128    

4,786

 
Total non-interest expense   30,436     17,009     91,507    

46,194

 
 
Income before income taxes 16,898 10,976 40,612

36,275

Provision for income taxes   5,176     4,394     14,473    

14,816

 
Net income 11,722 6,582 26,139 21,459
Less net income attributable to noncontrolling
interest in subsidiary   321     307     860     916  
Net income attributable to Brookline Bancorp, Inc. $ 11,401   $ 6,275   $ 25,279   $ 20,543  
 
Earnings per common share:
Basic $ 0.16 $ 0.11 $ 0.36 $ 0.35
Diluted 0.16 0.11 0.36 0.35
 
Weighted average common shares outstanding during the period:
Basic 69,716,283 58,640,775 69,682,741 58,627,311
Diluted 69,754,473 58,640,973 69,718,072 58,630,124
 
Dividends declared per common share $ 0.085 $ 0.085 $ 0.255 $ 0.255

                   
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Asset Quality Analysis (Unaudited)
 
At or for the Three Months Ended
Sep 30, 2012   Jun 30, 2012   Mar 31, 2012   Dec 31, 2011   Sep 30, 2011
(Dollars in Thousands)
NONPERFORMING ASSETS:
 
Nonaccrual loans and leases:
Commercial real estate mortgage $ 2,078 $ 2,120 $ - $ - $ -
Multi-family mortgage 2,758 3,129 2,634 1,380 1,373
Construction   -     -     -     -     -  
Total commercial real estate loans 4,836 5,249 2,634 1,380 1,373
 
Commercial 5,432 6,896 2,146 - -
Equipment financing 3,040 2,375 1,226 1,925 1,892
Condominium association   9     11     13     15     17  
Total commercial loans and leases 8,481 9,282 3,385 1,940 1,909
 
Indirect automobile loans 80 91 27 111 59
 
Residential mortgage 2,298 3,088 2,999 1,327 1,330
Home equity 988 784 299 98 98
Other consumer   49     5     10     10     11  
Total consumer loans 3,335 3,877 3,308 1,435 1,439
 
Acquired from First Ipswich Bank   4,557     2,567     2,647     2,664     2,757  
Total nonaccrual loans and leases 21,289 21,066 12,001 7,530 7,537
 
Other real estate owned 1,690 2,082 2,207 845 2,262
Other repossessed assets   696     683     440     421     687  
 
Total nonperforming assets $ 23,675   $ 23,831   $ 14,648   $ 8,796   $ 10,486  
 
Restructured loans and leases not included in nonperforming assets $ 6,588   $ 6,443   $ 6,692   $ 5,205   $ 3,456  
 
 
 
Nonperforming loans and leases as a percentage of total loans and leases 0.51 % 0.52 % 0.30 % 0.28 % 0.28 %
Nonperforming assets as a percentage of total assets 0.47 % 0.48 % 0.30 % 0.27 % 0.33 %
 
 
PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:
 
Allowance for loan and lease losses at beginning of period $ 37,431 $ 34,428 $ 31,703 $ 31,128 $ 30,847
Charge-offs (1,807 ) (3,970 ) (788 ) (533 ) (792 )
Recoveries   268     295     266     266     182  
Net charge-offs (1,539 ) (3,675 ) (522 ) (267 ) (610 )
Provision for loan and lease losses   3,021     6,678     3,247     842     891  
Allowance for loan and lease losses at end of period $ 38,913   $ 37,431   $ 34,428   $ 31,703   $ 31,128  
 
 
Allowance for loan and lease losses as a percentage of total loans and leases 0.94 % 0.93 % 0.87 % 1.17 % 1.17 %
 
 
NET CHARGE-OFFS:
 
Commercial real estate loans $ (38 ) $ (40 ) $ (40 ) $ - $ 30
Commercial loans and leases 1,179

3,292

263 (18 ) 132
Indirect automobile loans 301 225 292 278 448
Consumer loans   97    

198

    7     7     -  
Total net charge-offs $ 1,539   $ 3,675   $ 522   $ 267   $ 610  
 
Net loan and lease charge-offs as a percentage of
average loans and leases (annualized) 0.15 % 0.37 % 0.05 % 0.04 % 0.09 %

                                   
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Average Yields / Costs (Unaudited)
 
Three Months Ended
September 30, 2012 June 30, 2012 September 30, 2011

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:
Short-term investments $ 103,614 $ 71 0.27 % $ 71,675 $ 68 0.38 % $ 88,459 $ 27 0.12 %
Investment securities available-for-sale (2) 418,513 1,967 1.88 % 430,206 1,548 1.44 % 262,085 1,494 2.28 %
Restricted equity securities (2) 56,047 98 0.70 % 54,583 110 0.81 % 40,137 56 0.56 %
Commercial real estate loans (3) 1,944,222 23,648 4.89 %

1,915,314

24,391

4.95

% 1,192,771 15,570 5.24 %
Commercial loans (3) 378,822 6,869 7.23 %

337,330

3,687

5.60

% 191,256 2,330 4.85 %
Equipment financing (3) 406,423 7,816 7.69 % 367,550 7,670 8.08 % 223,089 4,578 8.21 %
Indirect automobile loans (3) 577,119 5,852 4.03 % 580,678 6,033 4.18 % 581,778 6,996 4.77 %
Residential mortgage loans (3) 506,701 5,686 4.49 % 489,688 5,445 4.45 % 346,564 3,815 4.40 %
Other consumer loans (3)   269,915     3,544 5.22 %   266,572     3,003 4.53 %   77,869     793 4.05 %
Total interest-earning assets 4,661,376   55,551 4.77 % 4,513,596  

51,955

4.62 % 3,004,008   35,659 4.75 %
Allowance for loan and lease losses (40,510 ) (35,962 ) (31,152 )
Non-interest-earning assets   424,892     427,299     149,467  
Total assets $ 5,045,758   $ 4,904,933   $ 3,122,323  
 
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts $ 181,891 $ 51 0.11 % $ 189,118 $ 57 0.12 % $ 135,303 $ 59 0.17 %
Savings accounts 517,068 410 0.32 % 505,601 443 0.35 % 165,697 250 0.60 %
Money market accounts 1,239,230 2,246 0.72 % 1,204,754 2,260 0.75 % 858,451 1,971 0.91 %
Certificates of deposit   1,049,390     2,668 1.01 %   1,056,021     2,703 1.03 %   813,246     2,691 1.31 %
Total interest-bearing deposits (4) 2,987,579 5,375 0.72 % 2,955,494 5,463 0.74 % 1,972,697 4,971 1.00 %
Advances from the FHLBB 757,017 3,408 1.79 % 694,746 3,424 1.98 % 425,177 2,661 2.48 %
Other borrowed funds   57,753     200 1.38 %   60,550     193 1.28 %   5,718     11 0.74 %
Total interest-bearing liabilities 3,802,349   8,983 0.94 % 3,710,790   9,080 0.98 % 2,403,592   7,643 1.26 %
Non-interest-bearing demand
checking accounts (4) 572,305 542,100 188,501
Other liabilities   59,429     50,327     25,164  
Total liabilities 4,434,083 4,303,217 2,617,257
Brookline Bancorp, Inc. stockholders' equity 605,988 597,908 502,252
Noncontrolling interest in subsidiary   5,687     3,808     2,814  
Total liabilities and equity $ 5,045,758   $ 4,904,933   $ 3,122,323  
Net interest income (tax-equivalent basis) /
Interest rate spread (5) 46,568 3.83 % 42,875 3.63 % 28,016 3.48 %
Less adjustment of tax-exempt income   157   116   70
Net interest income $ 46,411 $ 42,759 $ 27,946
Net interest margin (6) 4.00 % 3.81 % 3.74 %
 
 

 

 

(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 securities available-for-sale. Equity securities include marketable equity securities and restricted equity 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) Including non-interest-bearing checking accounts, the average interest rate on total deposits was 0.60%, 0.63% and 0.91% in the three months ended September 30, 2012, June 30, 2012, and September 30, 2011, respectively.

(5) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.

(6) 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, 2012 September 30, 2011

Average
Balance

Interest (1)

Average
Yield/Cost

Average
Balance

Interest (1)

Average
Yield/Cost

(Dollars in Thousands)
Assets:
Interest-earning assets:
Short-term investments $ 98,781 $ 166 0.23 % $ 72,702 $ 77 0.14 %
Investment securities available-for-sale (2) 447,344 6,753 2.01 % 294,017 5,020 2.28 %
Restricted equity securities (2) 54,893 317 0.77 % 39,361 161 0.54 %
Commercial real estate loans (3) 1,889,996 70,723 5.01 % 1,136,722 44,922 5.29 %
Commercial loans (3) 360,453 16,170 5.99 % 174,887 6,308 4.82 %
Equipment financing (3) 384,453 22,000 7.63 % 215,786 13,366 8.26 %
Indirect automobile loans (3) 577,857 18,132 4.19 % 576,488 21,591 5.01 %
Residential mortgage loans (3) 498,929 16,675 4.46 % 332,467 11,205 4.49 %
Other consumer loans (3)   269,473     9,587 4.75 %   74,886     2,222 3.97 %
Total interest-earning assets 4,582,179   160,523 4.68 % 2,917,316   104,872 4.80 %
Allowance for loan and lease losses (34,914 ) (30,340 )
Non-interest earning assets   405,524     133,079  
Total assets $ 4,952,789   $ 3,020,055  
 
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts $ 182,441 $ 162 0.12 % $ 132,056 $ 166 0.17 %
Savings accounts 517,168 1,351 0.35 % 154,869 734 0.63 %
Money market accounts 1,188,551 6,658 0.75 % 801,484 5,667 0.95 %
Certificates of deposit   1,064,431     8,184 1.03 %   815,934     8,436 1.38 %
Total interest-bearing deposits (4) 2,952,591 16,355 0.74 % 1,904,343 15,003 1.05 %
Advances from the FHLBB 723,934 10,502 1.94 % 412,260 7,854 2.55 %
Other borrowed funds   59,344     563 1.27 %   8,199     111 1.82 %
Total interest-bearing liabilities 3,735,869   27,420 0.98 % 2,324,802   22,968 1.32 %
Non-interest-bearing demand
checking accounts (4) 545,109 166,829
Other liabilities   67,793     26,136  
Total liabilities 4,348,771 2,517,767
Brookline Bancorp, Inc. stockholders' equity 598,292 499,620
Noncontrolling interest in subsidiary   5,726     2,668  
Total liabilities and equity $ 4,952,789   $ 3,020,055  
Net interest income (tax equivalent basis) /
Interest rate spread (5) 133,103 3.70 % 81,904 3.48 %
Less adjustment of tax-exempt income   298   218
Net interest income $ 132,805 $ 81,686
Net interest margin (6) 3.88 % 3.75 %
 
 

 

 

(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 securities available for sale. Equity securities include marketable equity securities and restricted equity 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) Including non-interest-bearing checking accounts, the average interest rate on total deposits was 0.62% and 0.97% in the nine months ended September 30, 2012 and 2011, respectively.

(5) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.

(6) 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)
 
Three Months Ended September 30,   Nine Months Ended September 30,
2012 2011 2012 2011
Reconciliation Table - Non-GAAP Financial Information (Dollars in Thousands Except Share Data)
 
Net income attributable to Brookline Bancorp, Inc. $ 11,401 $ 6,275 $ 25,279 $ 20,543
Add:
Merger-related expenses (after-tax)   -     487     3,972     1,411  
Net earnings from operations $ 11,401   $ 6,762   $ 29,251   $ 21,954  
 
Earnings per common share:
Basic $ 0.16 $ 0.12 $ 0.42 $ 0.37
Diluted 0.16 0.12 0.42 0.37
 
Weighted average common shares outstanding during the period:
Basic 69,716,283 58,640,775 69,682,741 58,627,311
Diluted 69,754,473 58,640,973 69,718,072 58,630,124
 
 
 
 
Sep 30, 2012 Jun 30, 2012 Mar 31, 2012 Dec 31, 2012 Sep 30, 2011
(Dollars in Thousands)
 
Brookline Bancorp, Inc. stockholders' equity $ 605,962 $ 598,865 $ 597,531 503,602 $ 501,890
Less:
Goodwill 137,890 137,890 138,914 45,799 46,203
Identified intangible assets   23,307     24,578     25,849     5,214     5,591  
Tangible stockholders' equity $ 444,765   $ 436,397   $ 432,768   $ 452,589   $ 450,096  
 
Total assets 5,061,444 4,972,381 4,877,124 3,299,013 3,157,498
Less:
Goodwill 137,890 137,890 138,914 45,799 46,203
Identified intangible assets   23,307     24,578     25,849     5,214     5,591  
Tangible assets $ 4,900,247   $ 4,809,913   $ 4,712,361   $ 3,248,000   $ 3,105,704  

 

 

Tangible stockholders' equity to tangible assets 9.08 % 9.07 % 9.18 % 13.93 % 14.49 %
 
 
 
Sep 30, 2012 Jun 30, 2012 Mar 31, 2012 Dec 31, 2011 Sep 30, 2011
(Dollars in Thousands Except Per Share Data)
 
Tangible stockholders' equity $ 444,765   $ 436,397   $ 432,768   $ 452,589   $ 450,096  
 
Common shares issued 75,749,819 75,414,713 75,585,504 64,597,180 64,580,180
Less:
Treasury shares   5,373,733     5,373,733     5,373,733     5,373,733     5,373,733  
Number of common shares outstanding   70,376,086     70,040,980     70,211,771     59,223,447     59,206,447  
 
Tangible book value per common share $ 6.32 $ 6.23 $ 6.16 $ 7.64 $ 7.60

Brookline Bancorp, Inc.
Julie A. Gerschick, 617-278-6406
Chief Financial Officer and Treasurer
jgerschick@brkl.com


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