Market Overview

Brookline Bancorp Announces Second Quarter Results

Share:

Net Income of $11.9 million, EPS of $0.17

BOSTON, July 22, 2015 /PRNewswire/ -- Brookline Bancorp, Inc. (NASDAQ: BRKL) (the "Company") today announced net income of $11.9 million, or $0.17 per basic and diluted share, for the second quarter of 2015, compared to $11.7 million, or $0.17 per basic and diluted share, for the first quarter of 2015.

Paul Perrault, President and Chief Executive Officer of the Company, stated: "We have delivered another solid quarter for our shareholders while improving our efficiency ratio, return on assets and stockholder's equity. Although the interest rate environment continues to be volatile, it is because of our strong fundamentals that we experienced strong growth in loans. I am grateful and proud of our employees who work together to live the Brookline Bancorp culture of providing excellent customer service and contributing to the growth of our Company."

BALANCE SHEET

Total assets of $5.8 billion at June 30, 2015 increased $27.8 million from March 31, 2015, and decreased $18.0 million from December 31, 2014. The increase in total assets of 1.9 percent on an annualized basis during the second quarter of 2015 was driven by increases in loan and leases, which were offset by decreases in cash, cash equivalents and investment securities. The excess liquidity generated by the sale of indirect automobile loans in March was deployed during the second quarter. At June 30, 2015, total loans and leases were $4.7 billion, representing an increase of $95.0 million from March 31, 2015, and a decrease of $93.0 million from December 31, 2014. During the second quarter of 2015, total loans and leases grew 8.2 percent on an annualized basis. Strong loan growth continued in the total commercial real estate and commercial loan and lease portfolios, which increased $67.3 million during the second quarter of 2015, or 7.2 percent on an annualized basis.

Cash, cash equivalents, and investment securities at June 30, 2015 decreased $79.9 million to $682.9 million, or 11.8 percent of total assets, as compared to $762.7 million, or 13.3 percent of total assets at March 31, 2015, and increased $68.9 million from $614.0 million, or 10.6 percent of total assets at December 31, 2014. The decrease during the second quarter of 2015 was primarily driven by the funding of loans.

Total deposits of $4.1 billion at June 30, 2015 increased $14.6 million from March 31, 2015 and increased $171.3 million from December 31, 2014. The increase during the second quarter of 2015 was primarily driven by an increase of $53.4 million in demand checking offset by a $38.8 million decrease in savings accounts. Core deposits, which consist of demand checking, NOW, savings, and money market accounts, increased at a 3.0 percent annualized rate in the second quarter of 2015. The core deposit ratio increased slightly to 74.7 percent at June 30, 2015 from 74.4 percent at March 31, 2015 and decreased from 76.1 percent at December 31, 2014. The average cost of deposits decreased to 0.51 percent at June 30, 2015 from 0.52 percent at March 31, 2015.

Total borrowings at June 30, 2015 were $937.6 million, an increase of $12.7 million as compared to March 31, 2015. Total borrowings decreased $188.8 million as compared to December 31, 2014 as proceeds from the sale of indirect automobile loans were used to pay down short term borrowings.

The ratio of stockholders' equity to total assets was 11.30 percent at June 30, 2015, as compared to 11.32 percent at March 31, 2015 and 11.06 percent at December 31, 2014. The ratio of tangible stockholders' equity to tangible assets was 8.94 percent at June 30, 2015, as compared to 8.93 percent at March 31, 2015 and 8.68 percent at December 31, 2014.

NET INTEREST INCOME

Net interest income decreased $1.4 million to $47.2 million during the second quarter of 2015 from the previous quarter. The net interest margin decreased 8 basis points to 3.49 percent for the three months ended June 30, 2015. The decrease in net interest income is largely a result of the sale of indirect automobile loans at the end of the first quarter offset by loan growth in the second quarter.

PROVISION FOR LOAN AND LEASE LOSSES

The Company recorded a provision for loan and lease losses of $1.8 million for the quarter ended June 30, 2015, compared to $2.3 million during the first quarter of 2015. The decrease of $0.5 million quarter over quarter is due to a $1.6 million specific reserve established during the first quarter, partially offset by additional reserves required for loan growth in the second quarter.

Net charge-offs decreased approximately $0.4 million to $0.5 million for the second quarter of 2015 from $0.9 million for the first quarter of 2015. The ratio of net charge-offs to average loans on an annualized basis decreased to 0.04 percent for the second quarter of 2015 from 0.07 percent for the first quarter of 2015.

The allowance for loan and lease losses represented 1.19 percent of total loans and leases at June 30, 2015 and March 31, 2015, compared to 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 1.27 percent at June 30, 2015, compared to 1.28 percent at March 31, 2015 and 1.20 at December 31, 2014.

NON-INTEREST INCOME

Non-interest income for the quarter ended June 30, 2015 increased $0.4 million to $4.9 million from the previous quarter. Loan level derivative income increased $0.9 million, offset by the decrease of $0.6 million from gain on sale of loans and leases held-for-sale.

NON-INTEREST EXPENSE

Non-interest expense for the quarter ended June 30, 2015 decreased approximately $0.9 million to $30.5 million from $31.3 million for the previous quarter. Compensation and employee benefits decreased $0.4 million primarily due to a decrease in payroll taxes and unemployment insurance due to the seasonal nature of the expenses which decrease once threshold limits are reached. Equipment and data processing expense decreased $0.3 million due to the decrease of core processing system expenses resulting from the sale of the indirect automobile loan portfolio.

RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

The return on average assets increased during the second quarter of 2015 to 0.82 percent at June 30, 2015 from 0.80 percent for the first quarter of 2015. The return on average tangible assets increased to 0.85 percent for the second quarter of 2015 from 0.82 percent for the first quarter of 2015. 

The return on average stockholders' equity increased during the second quarter of 2015 to 7.24 percent from 7.22 percent for the first quarter of 2015. The return on average tangible stockholders' equity decreased to 9.40 percent for the second quarter of 2015 from 9.41 percent for the first quarter of 2015.

ASSET QUALITY

Nonperforming loans and leases increased $0.7 million during the second quarter of 2015 to $23.5 million at June 30, 2015 from the previous quarter. The ratio of nonperforming loans and leases to total loans and leases increased slightly to 0.50 percent at June 30, 2015 from the previous quarter. Nonperforming assets also increased $1.1 million during the second quarter of 2015 to $25.9 million, or 0.45 percent of total assets, at June 30, 2015.

DIVIDEND DECLARED

The Company's Board of Directors approved a dividend of $0.09 per share. The dividend will be paid on August 21, 2015 to shareholders of record on August 7, 2015.

CONFERENCE CALL

The Company will conduct a conference call/webcast at 1:30 PM Eastern Standard Time on Thursday, July 23, 2015 to discuss the results for the quarter, business highlights and outlook. The call can be accessed by dialing 877-504-4120 (United States) or 412-902-6650 (internationally). A recorded playback of the call will be available for one week following the call at 877-344-7529 (United States) or 412-317-0088 (internationally). The passcode for the playback is 10068567. The call will be available live and in a recorded version on the Company's website under "Investor Relations" at www.brooklinebancorp.com.

ABOUT BROOKLINE BANCORP, INC.

Brookline Bancorp, Inc., a bank holding company with approximately $5.8 billion in assets and branch locations in Massachusetts and Rhode Island, is headquartered in Boston, Massachusetts and operates as the holding company for Brookline Bank, Bank Rhode Island, and First Ipswich Bank. The Company provides commercial and retail banking services and cash management and investment services to customers throughout Central New England. More information about Brookline Bancorp, Inc. and its banks can be found at the following websites: www.brooklinebank.com, www.bankri.com, and www.firstipswich.com.

FORWARD-LOOKING STATEMENTS

Certain statements contained in this press release that are not historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties. The Company's actual results could differ materially from those projected in the forward-looking statements as a result of, among others, the risks outlined in the Company's Annual Report on Form 10-K, as updated by its Quarterly Reports on Form 10-Q and other filings submitted to the Securities and Exchange Commission ("SEC"). The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.

BASIS OF PRESENTATION

The Company's consolidated financial statements have been prepared in conformity with generally accepted accounting principles ("GAAP") as set forth by the Financial Accounting Standards Board in its Accounting Standards Codification and through the rules and interpretive releases of the SEC under the authority of federal securities laws. Certain amounts previously reported have been reclassified to conform to the current period's presentation.

NON-GAAP FINANCIAL MEASURES

The Company uses certain non-GAAP financial measures, such as the allowance for loan and lease losses related to originated loans and leases as a percentage of originated loans and leases, tangible book value per common share and tangible stockholders' equity to tangible assets, return on average tangible assets and return on average tangible stockholders' equity. These non-GAAP financial measures provide information for investors to effectively analyze financial trends of ongoing business activities, and to enhance comparability with peers across the financial services sector. A detailed reconciliation table of the Company's GAAP to the non-GAAP measures is attached.

Contact:       

Carl M. Carlson


Brookline Bancorp, Inc.


Chief Financial Officer and Treasurer


(617) 425-5331


ccarlson@brkl.com

 


BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Selected Financial Highlights (Unaudited)



At and for the Three Months Ended


June 30,

2015


March 31,

2015


December 31,

2014


September 30,

2014


June 30,

2014


(Dollars In Thousands Except Share Data)

Earnings Data:










 Net interest income

$        47,172


$           48,528


$                 47,576


$                   47,324


$        46,434

 Provision for credit losses

1,913


2,263


1,724


2,034


2,276

 Non-interest income*

4,867


4,470


4,541


6,189


3,822

 Non-interest expense

30,452


31,326


32,455


31,914


31,215

 Income before provision for income taxes*

19,674


19,409


17,938


19,565


16,765

 Net income attributable to Brookline Bancorp, Inc.*

11,865


11,703


10,875


11,740


10,131











Performance Ratios:










 Net interest margin (1)

3.49 %


3.57 %


3.49 %


3.53 %


3.63 %

 Interest-rate spread (1)

3.32 %


3.36 %


3.37 %


3.43 %


3.47 %

 Return on average assets*

0.82 %


0.80 %


0.76 %


0.83 %


0.74 %

 Return on average tangible assets (non-GAAP)*

0.85 %


0.82 %


0.78 %


0.85 %


0.76 %

 Return on average stockholders' equity*

7.24 %


7.22 %


6.79 %


7.41 %


6.46 %

 Return on average tangible stockholders' equity (non-GAAP)*

9.40 %


9.41 %


8.90 %


9.77 %


8.56 %

 Efficiency ratio*

58.52 %


59.11 %


62.27 %


59.64 %


62.11 %











Per Common Share Data:










 Net income — Basic*

$            0.17


$               0.17


$                     0.16


$                       0.17


$            0.15

 Net income — Diluted*

0.17


0.17


0.16


0.17


0.14

 Cash dividends declared

0.090


0.085


0.085


0.085


0.085

 Book value per share (end of period)*

9.33


9.30


9.16


9.05


8.99

 Tangible book value per share (end of period) (non-GAAP)*

7.19


7.15


7.00


6.87


6.80

 Stock price (end of period)

11.29


10.05


10.03


8.55


9.37











Balance Sheet:










 Total assets*

$   5,782,934


$      5,755,146


$            5,800,948


$              5,718,944


$   5,588,306

 Total loans and leases

4,729,581


4,634,594


4,822,607


4,736,028


4,603,913

 Total deposits

4,129,408


4,114,795


3,958,106


3,889,204


3,861,147

 Brookline Bancorp, Inc. stockholders' equity*

653,516


651,319


641,818


633,379


628,483











Asset Quality:










 Nonperforming assets

$        25,874


$           24,757


$                 15,170


$                   19,785


$        18,407

 Nonperforming assets as a percentage of total assets*

0.45 %


0.43 %


0.26 %


0.35 %


0.33 %

 Allowance for loan and lease losses

$        56,398


$           55,106


$                 53,659


$                   52,822


$        51,686

 Allowance for loan and lease losses as a percentage of total loans and 
 leases

1.19 %


1.19 %


1.11 %


1.12 %


1.12 %

 Net loan and lease charge-offs

$             501


$                854


$                      874


$                        793


$             720

 Net loan and lease charge-offs as a percentage of average loans and leases
 
(annualized)

0.04 %


0.07 %


0.07 %


0.07 %


0.06 %











Capital Ratios:










 Stockholders' equity to total assets*

11.30 %


11.32 %


11.06 %


11.08 %


11.25 %

 Tangible stockholders' equity to tangible assets (non-GAAP)*

8.94 %


8.93 %


8.68 %


8.64 %


8.75 %











(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)


June 30,

2015


March 31,

2015


December 31,

2014


September 30,

2014


June 30,

2014

ASSETS

(In Thousands Except Share Data)

Cash and due from banks

$                43,363


$                     35,118


$                             36,893


$                                37,237


$                58,962

Short-term investments

48,513


162,003


25,830


50,901


20,771

  Total cash and cash equivalents

91,876


197,121


62,723


88,138


79,733

Investment securities available-for-sale

530,476


565,115


550,761


527,516


528,586

Investment securities held-to-maturity

60,511


500


500


500


500

  Total investment securities

590,987


565,615


551,261


528,016


529,086

Loans and leases held-for-sale

12,482


787


1,537


464


13,890

Loans and leases:










Commercial real estate loans:










  Commercial real estate mortgage

1,758,281


1,714,140


1,680,082


1,610,592


1,545,483

  Multi-family mortgage

627,571


652,500


639,706


630,852


631,371

  Construction

127,506


134,247


148,013


161,279


137,731

   Total commercial real estate loans

2,513,358


2,500,887


2,467,801


2,402,723


2,314,585

Commercial loans and leases:










  Commercial

578,548


560,344


514,077


495,712


478,856

  Equipment financing

648,447


614,301


601,424


576,541


552,489

  Condominium association

55,185


52,707


51,593


49,600


45,608

   Total commercial loans and leases

1,282,180


1,227,352


1,167,094


1,121,853


1,076,953

Indirect automobile loans

19,377


23,335


316,987


353,263


376,314

Consumer loans:










  Residential mortgage

603,073


578,994


571,920


570,128


550,814

  Home equity

299,396


292,198


287,058


274,762


270,203

  Other consumer

12,197


11,828


11,747


13,299


15,044

   Total consumer loans

914,666


883,020


870,725


858,189


836,061

   Total loans and leases

4,729,581


4,634,594


4,822,607


4,736,028


4,603,913

Allowance for loan and lease losses

(56,398)


(55,106)


(53,659)


(52,822)


(51,686)

   Net loans and leases

4,673,183


4,579,488


4,768,948


4,683,206


4,552,227

Restricted equity securities

75,553


74,804


74,804


74,804


71,446

Premises and equipment, net of accumulated depreciation

77,892


79,252


80,619


81,479


82,166

Deferred tax asset

28,466


25,834


27,687


29,168


27,799

Goodwill

137,890


137,890


137,890


137,890


137,890

Identified intangible assets, net of accumulated amortization

12,082


12,806


13,544


14,371


15,199

Other real estate owned and repossessed assets

2,412


2,023


1,456


2,463


1,246

Other assets*

80,111


79,526


80,479


78,945


77,624

    Total assets*

$          5,782,934


$              5,755,146


$                        5,800,948


$                           5,718,944


$           5,588,306

LIABILITIES AND STOCKHOLDERS' EQUITY










Deposits:










Non-interest-bearing deposits:










      Demand checking accounts

$              783,331


$                 729,932


$                            726,118


$                              705,604


$              716,883

Interest-bearing deposits:










      NOW accounts

247,172


237,200


235,063


220,766


209,682

      Savings accounts

532,184


571,030


531,727


532,790


518,343

      Money market accounts

1,523,798


1,525,053


1,518,490


1,522,612


1,516,023

      Certificate of deposit accounts

1,042,923


1,051,580


946,708


907,432


900,216

      Total interest-bearing deposits

3,346,077


3,384,863


3,231,988


3,183,600


3,144,264

        Total deposits

4,129,408


4,114,795


3,958,106


3,889,204


3,861,147

Borrowed funds:










      Advances from the FHLBB

823,452


806,491


1,004,026


1,027,211


1,005,644

      Subordinated debentures and notes

82,850


82,806


82,763


82,763


9,201

Other borrowed funds

31,346


35,628


39,615


22,891


26,159

                Total borrowed funds

937,648


924,925


1,126,404


1,132,865


1,041,004

Mortgagors' escrow accounts

7,494


8,414


8,501


8,757


8,359

Accrued expenses and other liabilities

49,792


51,046


61,332


50,430


45,411

                  Total liabilities

5,124,342


5,099,180


5,154,343


5,081,256


4,955,921

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

618,044


617,845


617,475


616,997


617,709

   Retained earnings, partially restricted*

96,128


90,589


84,860


79,959


74,193

   Accumulated other comprehensive income (loss)

(1,775)


1,747


(1,622)


(4,681)


(3,209)

Treasury stock, at cost;










      5,048,525 shares, 5,042,238 shares, 5,040,571 shares, 5,035,956  shares, and 5,144,807 shares, respectively

(58,372)


(58,301)


(58,282)


(58,228)


(59,487)

Unallocated common stock held by the Employee Stock Ownership Plan;










232,224 shares, 241,803 shares, 251,382 shares, 261,453 shares, and 271,524 shares, respectively

(1,266)


(1,318)


(1,370)


(1,425)


(1,480)

              Total Brookline Bancorp, Inc. stockholders' equity*

653,516


651,319


641,818


633,379


628,483

 Noncontrolling interest in subsidiary

5,076


4,647


4,787


4,309


3,902

     Total stockholders' equity*

658,592


655,966


646,605


637,688


632,385

     Total liabilities and stockholders' equity*

$          5,782,934


$              5,755,146


$                       5,800,948


$                          5,718,944


$          5,588,306


(*) 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


June 30,

2015


March 31,

2015


December 31,

2014


September 30,

2014


June 30,

2014


(In Thousands Except Share Data)

Interest and dividend income:










   Loans and leases

$        51,684


$           53,381


$                 52,637


$                   51,769


$        50,433

   Debt securities

2,931


2,683


2,596


2,312


2,360

   Marketable and restricted equity securities

491


524


564


520


539

   Short-term investments

60


21


29


15


14

       Total interest and dividend income

55,166


56,609


55,826


54,616


53,346

Interest expense:










   Deposits

4,296


4,304


4,320


4,248


4,201

   Borrowed funds

3,698


3,777


3,930


3,044


2,711

       Total interest expense

7,994


8,081


8,250


7,292


6,912

Net interest income

47,172


48,528


47,576


47,324


46,434

Provision for credit losses

1,913


2,263


1,724


2,034


2,276

     Net interest income after provision for credit losses

45,259


46,265


45,852


45,290


44,158

Non-interest income:










   Deposit fees

2,195


2,066


2,177


2,352


2,204

   Loan fees

271


342


331


253


126

   Loan level derivative income, net

941



562


322


62

   Gain/(loss) on sales of securities, net



78



(13)

   Gain on sales of loans and leases held-for-sale

279


869


323


538


54

   (Loss)/gain on sale/disposals of premises and equipment, net




(2)


(6)

   Litigation settlement




1,412


   Other

1,181


1,193


1,070


1,314


1,395

       Total non-interest income*

4,867


4,470


4,541


6,189


3,822

Non-interest expense:










   Compensation and employee benefits

17,085


17,524


18,216


18,258


17,295

   Occupancy

3,437


3,472


3,401


3,334


3,154

   Equipment and data processing

3,680


4,020


4,102


4,193


4,348

   Professional services

1,163


1,094


1,159


991


1,480

   FDIC insurance

831


867


782


873


847

   Advertising and marketing

823


748


872


745


776

   Amortization of identified intangible assets

724


738


827


828


827

   Other

2,709


2,863


3,096


2,692


2,488

     Total non-interest expense

30,452


31,326


32,455


31,914


31,215

 Income before provision for income taxes*

19,674


19,409


17,938


19,565


16,765

Provision for income taxes*

7,115


7,104


6,586


7,163


6,158

    Net income before noncontrolling interest in subsidiary*

12,559


12,305


11,352


12,402


10,607

Less net income attributable to noncontrolling interest in subsidiary

694


602


477


662


$             476

    Net income attributable to Brookline Bancorp, Inc.*

$        11,865


$           11,703


$10,875


$11,740


10,131

Earnings per common share:*










    Basic

$            0.17


$               0.17


$                     0.16


$                       0.17


$            0.15

    Diluted

$            0.17


$               0.17


$                     0.16


$                       0.17


$            0.14

Weighted average common shares outstanding during the period:










    Basic

70,049,829


70,036,090


70,024,495


69,989,909


69,866,576

    Diluted

70,215,850


70,164,105


70,130,243


70,088,987


70,012,377

Dividends declared per common share

$            0.09


$             0.085


$                   0.085


$                     0.085


$          0.085


(*) Previously reported amounts prior to January 1, 2015 have been restated to reflect a retrospective change in accounting principle for investments in qualified affordable housing projects, in accordance with ASU 2014-01.


 

 

BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Consolidated Statements of Income (Unaudited)




Six Months Ended June 30,


2015


2014


(In Thousands Except Share Data)

Interest and dividend income:




Loans and leases

$      105,065


$      102,375

Debt securities

5,614


4,619

Marketable and restricted equity securities

1,015


988

Short-term investments

81


58

   Total interest and dividend income

111,775


108,040

Interest expense:




Deposits

8,600


8,492

Borrowed funds

7,475


5,380

   Total interest expense

16,075


13,872

Net interest income

95,700


94,168

Provision for credit losses

4,176


4,719

   Net interest income after provision for credit losses

91,524


89,449

Non-interest income:




Deposit Fees

4,261


4,163

Loan Fees

613


560

Loan level derivative income, net

941


62

Loss on sales of securities, net


(13)

Gain on sales of loans and leases held-for-sale

1,148


656

Gain on sale/disposals of premises and equipment, net


1,504

Other

2,374


2,518

     Total non-interest income*

9,337


9,450

Non-interest expense:




  Compensation and employee benefits

34,609


35,327

  Occupancy

6,909


7,559

  Equipment and data processing

7,700


8,725

  Professional services

2,257


3,207

  FDIC insurance

1,698


1,707

  Advertising and marketing

1,571


1,441

  Amortization of identified intangible assets

1,462


1,688

  Other

5,572


5,137

       Total non-interest expense

61,778


64,791

 Income before provision for income taxes*

39,083


34,108

Provision for income taxes*

14,219


12,537

     Net income before noncontrolling interest in subsidiary*

24,864


21,571

Less net income attributable to noncontrolling interest in subsidiary

1,296


898

   Net income attributable to Brookline Bancorp, Inc.*

$        23,568


$        20,673

Earnings per common share:




   Basic

$            0.34


$            0.30

   Diluted

$            0.34


$            0.29

Weighted average common shares outstanding during the period:




   Basic

70,042,997


69,881,055

    Diluted

70,190,015


69,998,219

Dividends declared per common share

$          0.175


$          0.170


(*) 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


June 30,
2015


March 31,
2015


December 31,
2014


September 30,
2014


June 30,
2014


(Dollars in Thousands)

NONPERFORMING ASSETS:










Loans and leases accounted for on a nonaccrual basis:










Commercial real estate mortgage

$          3,174


$             3,250


$                   1,009


$                     3,174


$          3,011

Multi-family mortgage

309




299


Construction





    Total commercial real estate loans

3,483


3,250


1,009


3,473


3,011











Commercial

12,316


12,039


5,196


6,071


6,383

Equipment financing

2,639


2,321


3,223


2,756


3,251

Condominium association





    Total commercial loans and leases

14,955


14,360


8,419


8,827


9,634











Indirect automobile loans

417


468


645


474


325











Residential mortgage

2,421


2,632


1,682


2,636


2,384

Home equity

2,144


1,979


1,918


1,865


1,771

Other consumer

42


45


41


47


36

    Total consumer loans

4,607


4,656


3,641


4,548


4,191











    Total nonaccrual loans and leases

23,462


22,734


13,714


17,322


17,161











Other real estate owned

1,676


1,043


953


1,536


675

Other repossessed assets

736


980


503


927


571

    Total nonperforming assets

$        25,874


$           24,757


$                 15,170


$                   19,785


$        18,407











Loans and leases past due greater than 90 days and still accruing

$        10,220


$             8,061


$                   6,008


$                     3,919


$          6,653











Troubled debt restructurings on accrual

14,205


14,184


14,815


15,174


12,396

Troubled debt restructurings on nonaccrual

5,981


6,126


5,625


5,609


5,992

    Total troubled debt restructurings

$        20,186


$           20,310


$                 20,440


$                   20,783


$        18,388











Nonperforming loans and leases as a percentage of total loans and leases

0.50 %


0.49 %


0.28 %


0.37 %


0.37 %

Nonperforming assets as a percentage of total assets*

0.45 %


0.43 %


0.26 %


0.35 %


0.33 %











PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:










Allowance for loan and lease losses at beginning of period

$        55,106


$           53,659


$                 52,822


$                   51,686


$        50,224

Charge-offs

(1,029)


(1,665)


(1,068)


(1,136)


(1,196)

Recoveries

528


811


194


343


476

    Net charge-offs

(501)


(854)


(874)


(793)


(720)

Provision for loan and lease losses

1,793


2,301


1,711


1,929


2,182

    Allowance for loan and lease losses at end of period

$        56,398


$           55,106


$                 53,659


$                   52,822


$        51,686











Allowance for loan and lease losses as a percentage of total loans and leases

1.19 %


1.19 %


1.11 %


1.12 %


1.12 %

Allowance for loan and lease losses related to originated loans and leases as a

percentage of originated loans and leases

1.27 %


1.28 %


1.20 %


1.26 %


1.31 %











NET CHARGE-OFFS:










Commercial real estate loans

$             162


$                388


$                        62


$                          64


$                —

Commercial loans and leases

151


238


480


348


578

Indirect automobile loans

(13)


239


281


208


55

Consumer loans

201


(11)


51


173


87

    Total net charge-offs

$             501


$                854


$                      874


$                        793


$             720











Net loan and lease charge-offs as a percentage of average loans and leases (annualized)

0.04 %


0.07 %


0.07 %


0.07 %


0.06 %


(*) 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


June 30, 2015


March 31, 2015


June 30, 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)

$      591,120


$   2,941


1.99 %


$      554,611


$   2,683


1.94 %


$      526,471


$   2,360


1.79 %

  Marketable and restricted equity

  securities (2)

76,332


493


2.59 %


75,783


521


2.75 %


69,483


543


3.13 %

  Short-term investments

85,737


60


0.28 %


49,841


21


0.17 %


36,850


14


0.16 %

    Total investments

753,189


3,494


1.86 %


680,235


3,225


1.90 %


632,804


2,917


1.84 %

Loans and Leases:


















  Commercial real estate loans (3)

2,505,925


26,391


4.21 %


2,475,950


26,245


4.24 %


2,288,018


25,395


4.42 %

  Commercial loans (3)

639,609


6,394


3.96 %


610,695


6,506


4.26 %


504,572


5,246


4.12 %

  Equipment financing (3)

627,032


10,793


6.89 %


611,309


10,544


6.90 %


541,029


9,155


6.77 %

  Indirect automobile loans (3)

21,171


218


4.13 %


282,494


2,142


3.08 %


374,489


3,032


3.25 %

  Residential mortgage loans (3)

589,171


5,260


3.57 %


576,858


5,307


3.68 %


532,310


4,918


3.70 %

  Other consumer loans (3)

308,932


2,838


3.68 %


299,119


2,828


3.83 %


277,802


2,833


4.09 %

    Total loans and leases

4,691,840


51,894


4.42 %


4,856,425


53,572


4.41 %


4,518,220


50,579


4.46 %

      Total interest-earning assets

5,445,029


55,388


4.07 %


5,536,660


56,797


4.10 %


5,151,024


53,496


4.15 %

Allowance for loan and lease losses

(55,427)






(54,319)






(50,809)





Non-interest-earning assets*

373,018






369,773






359,789





    Total assets*

$   5,762,620






$   5,852,114






$   5,460,004























Liabilities and Stockholders' Equity:


















Interest-bearing liabilities:


















Deposits:


















  NOW accounts

$      248,786


$        45


0.07 %


$      237,718


$        44


0.08 %


$      217,082


$        42


0.08 %

  Savings accounts

554,618


263


0.19 %


541,595


273


0.20 %


523,773


303


0.23 %

  Money market accounts

1,544,877


1,693


0.44 %


1,536,751


1,816


0.48 %


1,528,959


1,936


0.51 %

  Certificates of deposit

1,049,297


2,295


0.88 %


1,033,511


2,171


0.85 %


901,272


1,920


0.85 %

    Total interest-bearing deposits

3,397,578


4,296


0.51 %


3,349,575


4,304


0.52 %


3,171,086


4,201


0.53 %

Borrowings


















  Advances from the FHLBB

782,434


2,415


1.22 %


941,314


2,504


1.06 %


892,770


2,602


1.15 %

  Subordinated debentures and notes

82,827


1,250


6.03 %


82,784


1,248


6.03 %


9,189


99


4.31 %

Other borrowed funds

34,546


33


0.39 %


37,806


25


0.27 %


25,938


10


0.15 %

    Total borrowings

899,807


3,698


1.63 %


1,061,904


3,777


1.42 %


927,897


2,711


1.16 %

Total interest-bearing liabilities

4,297,385


7,994


0.75 %


4,411,479


8,081


0.74 %


4,098,983


6,912


0.68 %

  Non-interest-bearing liabilities:


















  Demand checking accounts

750,827






728,099






690,549





Other non-interest-bearing liabilities

54,352






59,226






39,219





        Total liabilities

5,102,564






5,198,804






4,828,751





Brookline Bancorp, Inc. stockholders' equity*

655,223






648,683






627,114





Noncontrolling interest in subsidiary

4,833






4,627






4,139





      Total liabilities and equity*

$   5,762,620






$   5,852,114






$   5,460,004





Net interest income (tax-equivalent basis)

/Interest-rate spread (4)



47,394


3.32 %




48,716


3.36 %




46,584


3.47 %

Less adjustment of tax-exempt income



222






188






150



Net interest income



$   47,172






$   48,528






$   46,434



Net interest margin (5)





3.49 %






3.57 %






3.63 %


(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)




Six Months Ended


June 30, 2015


June 30, 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)

$      572,966


$     5,625


1.96 %


$      514,134


$     4,626


1.80 %

  Marketable and restricted equity securities (2)

76,059


1,015


2.67 %


68,692


992


2.89 %

  Short-term investments

67,888


81


0.24 %


41,317


58


0.28 %

    Total investments

716,913


6,721


1.87 %


624,143


5,676


1.82 %

Loans and Leases:












  Commercial real estate loans (3)

2,491,020


52,636


4.23 %


2,258,422


51,097


4.53 %

  Commercial loans (3)

625,231


12,901


4.11 %


489,732


9,939


4.04 %

  Equipment financing (3)

619,214


21,337


6.89 %


532,570


20,192


7.58 %

  Indirect automobile loans (3)

151,110


2,360


3.15 %


379,633


6,296


3.34 %

  Residential mortgage loans (3)

583,049


10,568


3.62 %


532,451


9,727


3.65 %

  Other consumer loans (3)

304,052


5,666


3.76 %


272,532


5,412


4.00 %

    Total loans and leases

4,773,676


105,468


4.42 %


4,465,340


102,663


4.60 %

      Total interest-earning assets

5,490,589


112,189


4.09 %


5,089,483


108,339


4.26 %

Allowance for loan and lease losses

(54,876)






(49,953)





Non-interest-earning assets*

371,408






364,175





  Total assets*

$   5,807,121






$   5,403,705

















Liabilities and Stockholders' Equity:












Interest-bearing liabilities:












Deposits:












  NOW accounts

$      243,283


$          88


0.07 %


$      215,826


$          83


0.08 %

  Savings accounts

548,143


536


0.20 %


516,206


606


0.24 %

  Money market accounts

1,540,837


3,509


0.46 %


1,517,537


3,895


0.52 %

  Certificates of deposit

1,041,447


4,467


0.86 %


914,166


3,908


0.86 %

    Total interest-bearing deposits

3,373,710


8,600


0.51 %


3,163,735


8,492


0.54 %

Borrowings












  Advances from the FHLBB

861,435


4,919


1.14 %


848,495


5,133


1.20 %

  Subordinated debentures and notes

82,806


2,498


6.03 %


9,180


198


4.31 %

Other borrowed funds

36,167


58


0.32 %


27,593


49


0.36 %

    Total borrowings

980,408


7,475


1.52 %


885,268


5,380


1.21 %

                 Total interest-bearing liabilities

4,354,118


16,075


0.74 %


4,049,003


13,872


0.69 %

Non-interest-bearing liabilities:












   Demand checking accounts

739,526






682,599





Other non-interest-bearing liabilities

56,775






43,141





         Total liabilities

5,150,419






4,774,743





Brookline Bancorp, Inc. stockholders' equity*

651,971






624,769





Noncontrolling interest in subsidiary

4,731






4,193





          Total liabilities and equity*

$   5,807,121






$   5,403,705





Net interest income (tax-equivalent basis) /Interest-rate spread (4)



96,114


3.35 %




94,467


3.57 %

Less adjustment of tax-exempt income



414






299



Net interest income



$   95,700






$   94,168



Net interest margin (5)





3.53 %






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 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


June 30, 2015


March 31,
2015


December 31, 2014


September 30,
2014


June 30, 2014


(Dollars in Thousands)











Net income, as reported*

$        11,865


$           11,703


$                 10,875


$                   11,740


$        10,131











Average total assets*

$   5,762,620


$      5,852,114


$            5,757,715


$              5,654,792


$   5,460,004

Less: Average goodwill and average identified

intangible assets, net

150,385


151,125


151,932


152,755


153,577

Average tangible assets*

$   5,612,235


$      5,700,989


$            5,605,783


$              5,502,037


$   5,306,427











Return on average tangible assets

(annualized)*

0.85 %


0.82 %


0.78 %


0.85 %


0.76 %











Average total stockholders' equity*

$      655,223


$         648,683


$               640,706


$                 633,406


$      627,114

Less: Average goodwill and average identified

intangible assets, net

150,385


151,125


151,932


152,755


153,577

Average tangible stockholders' equity*

$      504,838


$         497,558


$               488,774


$                 480,651


$      473,537











Return on average tangible stockholders'

equity (annualized)*

9.40 %


9.41 %


8.90 %


9.77 %


8.56 %











Brookline Bancorp, Inc. stockholders' equity*

$      653,516


$         651,319


$               641,818


$                 633,379


$      628,483

Less:










  Goodwill

137,890


137,890


137,890


137,890


137,890

  Identified intangible assets, net

12,082


12,806


13,544


14,371


15,199

Tangible stockholders' equity*

$      503,544


$         500,623


$               490,384


$                 481,118


$      475,394











Total assets*

$   5,782,934


$      5,755,146


$            5,800,948


$              5,718,944


$   5,588,306

Less:










  Goodwill

137,890


137,890


137,890


137,890


137,890

  Identified intangible assets, net

12,082


12,806


13,544


14,371


15,199

Tangible assets*

$   5,632,962


$      5,604,450


$            5,649,514


$              5,566,683


$   5,435,217











Tangible stockholders' equity to tangible

assets*

8.94 %


8.93 %


8.68 %


8.64 %


8.75 %











Tangible stockholders' equity*

$      503,544


$         500,623


$               490,384


$                 481,118


$      475,394











Number of common shares issued

75,744,445


75,744,445


75,744,445


75,744,445


75,744,445

  Less:










    Treasury shares

5,048,525


5,042,238


5,040,571


5,035,956


5,144,807

    Unallocated ESOP shares

232,224


241,803


251,382


261,453


271,524

    Unvested restricted shares

406,566


418,035


419,702


427,952


434,459

Number of common shares outstanding

70,057,130


70,042,369


70,032,790


70,019,084


69,893,655











Tangible book value per common share*

$            7.19


$               7.15


$                     7.00


$                       6.87


$            6.80











Allowance for loan and lease losses

$        56,398


$           55,106


$                 53,659


$                   52,822


$        51,686

  Less:










    Allowance for acquired loans and leases losses

2,655


2,911


2,848


1,933


1,247

      Allowance for originated loan and lease losses

$        53,743


$           52,195


$                 50,811


$                   50,889


$        50,439











Total loans and leases

$   4,729,581


$      4,634,594


$            4,822,607


$              4,736,028


$   4,603,913

  Less:










    Total acquired loans and leases

509,028


561,103


590,654


709,404


747,106

      Total originated loans and leases

$   4,220,553


$      4,073,491


$            4,231,953


$              4,026,624


$   3,856,807











Allowance for loan and lease losses related to

originated loans and leases as a percentage

of originated loans and leases

1.27 %


1.28 %


1.20 %


1.26 %


1.31 %


(*) Previously reported amounts January 1, 2015 have been restated to reflect a retrospective change in accounting principle for investments in qualified affordable housing projects, in accordance with ASU 2014-01.


 

Brookline Bancorp, Inc

 

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To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/brookline-bancorp-announces-second-quarter-results-300117389.html

SOURCE Brookline Bancorp, Inc.

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