Market Overview

Brookline Bancorp Announces Third Quarter Results

Share:

Net Income Up 8.6% to $12.9 million, EPS of $0.18

BOSTON, Oct. 21, 2015 /PRNewswire/ -- Brookline Bancorp, Inc. (NASDAQ: BRKL) (the "Company") today announced net income of $12.9 million, or $0.18 per basic and diluted share, for the third quarter of 2015, compared to $11.9 million, or $0.17 per basic and diluted share, for the second 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 continues to execute on its strategy of high performance for both customers and stockholders."

BALANCE SHEET

Total assets of $5.8 billion at September 30, 2015 increased $56.6 million from June 30, 2015, and increased $38.6 million from December 31, 2014. The increase in total assets of 3.9 percent on an annualized basis during the third quarter of 2015 was primarily driven by increases in loans and leases, partly offset by decreases in cash and cash equivalents. The Company completed its effort to deploy excess liquidity generated by the sale of indirect automobile loans in March 2015. At September 30, 2015, total loans and leases were $4.8 billion, representing an increase of $99.6 million from June 30, 2015, and an increase of $6.5 million from December 31, 2014. During the third quarter of 2015, total loans and leases grew 8.4 percent on an annualized basis. Strong loan growth continued in the total commercial real estate and commercial loan and lease portfolios, which increased $90.4 million during the third quarter of 2015, or 9.5 percent on an annualized basis.

Cash, cash equivalents, and investment securities at September 30, 2015 decreased $46.0 million to $636.9 million, or 10.9 percent of total assets, as compared to $682.9 million, or 11.8 percent of total assets at June 30, 2015, and increased $22.9 million from $614.0 million, or 10.6 percent of total assets at December 31, 2014. The decrease during the third quarter of 2015 was primarily driven by the funding of loans.

Total deposits of $4.1 billion at September 30, 2015 increased $15.2 million from June 30, 2015 and increased $186.5 million from December 31, 2014. The increase during the third quarter of 2015 was primarily driven by an increase of $21.5 million in certificate of deposit accounts. Core deposits, which consist of demand checking, NOW, savings, and money market accounts, decreased slightly in the third quarter of 2015. The core deposit ratio also decreased slightly to 74.3 percent at September 30, 2015 from 74.7 percent at June 30, 2015 and from 76.1 percent at December 31, 2014. The average cost of deposits remained constant at 0.51 percent at September 30, 2015 and June 30, 2015.

Total borrowings at September 30, 2015 were $960.2 million, an increase of $22.6 million as compared to June 30, 2015. Total borrowings decreased $166.2 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 11.36 percent at September 30, 2015, as compared to 11.30 percent at June 30, 2015 and 11.06% percent at December 31, 2014. The ratio of tangible stockholders' equity to tangible assets was 9.04 percent at September 30, 2015, as compared to 8.94 percent at June 30, 2015 and 8.68% percent at December 31, 2014.

NET INTEREST INCOME

Net interest income increased $1.4 million to $48.6 million during the third quarter of 2015 from the previous quarter. The net interest margin increased 5 basis points to 3.54 percent for the three months ended September 30, 2015. The increase in net interest income is a result of increased interest income from higher loan balances and an increase in dividend income from restricted equity securities.

PROVISION FOR LOAN AND LEASE LOSSES

The Company recorded a provision for loan and lease losses of $1.7 million for the quarter ended September 30, 2015, compared to $1.8 million from the previous quarter.

Net charge-offs increased $1.1 million to $1.6 million for the third quarter of 2015 from $0.5 million for the second quarter of 2015. The ratio of net charge-offs to average loans on an annualized basis increased to 13 basis points for the third quarter of 2015 from 4 basis points for the second quarter of 2015. The charge-offs on two relationships, both of which had specific reserves recorded in a prior period, contributed to the increase in net charge-offs for the third quarter.

The allowance for loan and lease losses represented 1.17 percent of total loans and leases at September 30, 2015, compared to 1.19 percent at June 30, 2015, and 1.11 percent at December 31, 2014. The allowance for loan and lease losses related to originated loans and leases as a percentage of originated loans and leases was 1.25 percent at September 30, 2015, compared to 1.27 percent at June 30, 2015 and 1.20 percent at December 31, 2014.

NON-INTEREST INCOME

Non-interest income of $4.8 million for the quarter ended September 30, 2015 remained consistent with the previous quarter.

NON-INTEREST EXPENSE

Non-interest expense for the quarter ended September 30, 2015 increased $0.8 million to $31.3 million from $30.5 million for the previous quarter.

PROVISION FOR INCOME TAXES

The effective tax rate decreased by 2.3 percentage points, from 36.2 percent for the quarter ended June 30, 2015 to 33.9 percent for the quarter ended September 30, 2015. The effective tax rate was 35.5 percent for the nine months ended September 30, 2015.

RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

The return on average assets increased during the third quarter of 2015 to 0.89 percent at September 30, 2015 from 0.82 percent for the second quarter of 2015. The return on average tangible assets increased to 0.91 percent for the third quarter of 2015 from 0.85 percent for the second quarter of 2015. 

The return on average stockholders' equity increased during the third quarter of 2015 to 7.81 percent from 7.24 percent for the second quarter of 2015. The return on average tangible stockholders' equity increased to 10.11 percent for the third quarter of 2015 from 9.40 percent for the second quarter of 2015.

ASSET QUALITY

Nonperforming loans and leases decreased $3.7 million during the third quarter of 2015 to $19.7 million at September 30, 2015 from the previous quarter. The ratio of nonperforming loans and leases to total loans and leases decreased to 0.41 percent at September 30, 2015 from the previous quarter. Nonperforming assets also decreased $4.8 million during the third quarter of 2015 to $21.0 million, or 0.36 percent of total assets, at September 30, 2015.

DIVIDEND DECLARED

The Company's Board of Directors approved a dividend of $0.09 per share. The dividend will be paid on November 20, 2015 to stockholders of record on November 6, 2015.

CONFERENCE CALL

The Company will conduct a conference call/webcast at 1:30 PM Eastern Standard Time on Thursday, October 22, 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 10073581. The call will be available live and in a recorded version on the Company's website under "Investor Relations" at www.brooklinebancorp.com.

ABOUT BROOKLINE BANCORP, INC.

Brookline Bancorp, Inc., a bank holding company with 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, 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


September 30,
2015


June 30,
2015


March 31,
2015


December 31,
2014


September 30,
2014


(Dollars In Thousands Except Share Data)

Earnings Data:










Net interest income

$

48,587



$

47,172



$

48,528



$

47,576



$

47,324


Provision for credit losses

1,755



1,913



2,263



1,724



2,034


Non-interest income*

4,784



4,867



4,470



4,541



6,189


Non-interest expense

31,270



30,452



31,326



32,455



31,914


Income before provision for income taxes*

20,346



19,674



19,409



17,938



19,565


Net income attributable to Brookline Bancorp, Inc.*

12,888



11,865



11,703



10,875



11,740












Performance Ratios:










Net interest margin (1)

3.54

%


3.49

%


3.57

%


3.49

%


3.53

%

Interest-rate spread (1)

3.41

%


3.32

%


3.36

%


3.37

%


3.43

%

Return on average assets*

0.89

%


0.82

%


0.80

%


0.76

%


0.83

%

Return on average tangible assets (non-GAAP)*

0.91

%


0.85

%


0.82

%


0.78

%


0.85

%

Return on average stockholders' equity*

7.81

%


7.24

%


7.22

%


6.79

%


7.41

%

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

10.11

%


9.40

%


9.41

%


8.90

%


9.77

%

Efficiency ratio*

58.59

%


58.52

%


59.11

%


62.27

%


59.64

%











Per Common Share Data:










Net income — Basic*

$

0.18



$

0.17



$

0.17



$

0.16



$

0.17


Net income — Diluted*

0.18



0.17



0.17



0.16



0.17


Cash dividends declared

0.090



0.090



0.085



0.085



0.085


Book value per share (end of period)*

9.45



9.33



9.30



9.16



9.05


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

7.33



7.19



7.15



7.00



6.87


Stock price (end of period)

10.14



11.29



10.05



10.03



8.55












Balance Sheet:










Total assets*

$

5,839,529



$

5,782,934



$

5,755,146



$

5,800,948



$

5,718,944


Total loans and leases

4,829,152



4,729,581



4,634,594



4,822,607



4,736,028


Total deposits

4,144,577



4,129,408



4,114,795



3,958,106



3,889,204


Brookline Bancorp, Inc. stockholders' equity*

663,468



653,516



651,319



641,818



633,379












Asset Quality:










Nonperforming assets

$

21,025



$

25,874



$

24,757



$

15,170



$

19,785


Nonperforming assets as a percentage of total assets*

0.36

%


0.45

%


0.43

%


0.26

%


0.35

%

Allowance for loan and lease losses

$

56,472



$

56,398



$

55,106



$

53,659



$

52,822


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

1.17

%


1.19

%


1.19

%


1.11

%


1.12

%

Net loan and lease charge-offs

$

1,599



$

501



$

854



$

874



$

793


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

0.13

%


0.04

%


0.07

%


0.07

%


0.07

%











Capital Ratios:










Stockholders' equity to total assets*

11.36

%


11.30

%


11.32

%


11.06

%


11.08

%

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

9.04

%


8.94

%


8.93

%


8.68

%


8.64

%











(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)


September 30,
2015


June 30,
2015


March 31,
2015


December 31,
2014


September 30,
2014

ASSETS

(In Thousands Except Share Data)

Cash and due from banks

$

27,299



$

43,363



$

35,118



$

36,893



$

37,237


Short-term investments

19,745



48,513



162,003



25,830



50,901


Total cash and cash equivalents

47,044



91,876



197,121



62,723



88,138


Investment securities available-for-sale

526,764



530,476



565,115



550,761



527,516


Investment securities held-to-maturity

63,097



60,511



500



500



500


Total investment securities

589,861



590,987



565,615



551,261



528,016


Loans and leases held-for-sale

10,992



12,482



787



1,537



464


Loans and leases:










Commercial real estate loans:










Commercial real estate mortgage

1,810,550



1,758,281



1,714,140



1,680,082



1,610,592


Multi-family mortgage

614,560



627,571



652,500



639,706



630,852


Construction

138,261



127,506



134,247



148,013



161,279


Total commercial real estate loans

2,563,371



2,513,358



2,500,887



2,467,801



2,402,723


Commercial loans and leases:










Commercial

580,711



578,548



560,344



514,077



495,712


Equipment financing

684,331



648,447



614,301



601,424



576,541


Condominium association

57,562



55,185



52,707



51,593



49,600


Total commercial loans and leases

1,322,604



1,282,180



1,227,352



1,167,094



1,121,853


Indirect automobile loans

16,294



19,377



23,335



316,987



353,263


Consumer loans:










Residential mortgage

606,063



603,073



578,994



571,920



570,128


Home equity

308,371



299,396



292,198



287,058



274,762


Other consumer

12,449



12,197



11,828



11,747



13,299


Total consumer loans

926,883



914,666



883,020



870,725



858,189


Total loans and leases

4,829,152



4,729,581



4,634,594



4,822,607



4,736,028


Allowance for loan and lease losses

(56,472)



(56,398)



(55,106)



(53,659)



(52,822)


Net loans and leases

4,772,680



4,673,183



4,579,488



4,768,948



4,683,206


Restricted equity securities

75,553



75,553



74,804



74,804



74,804


Premises and equipment, net of accumulated depreciation

77,472



77,892



79,252



80,619



81,479


Deferred tax asset

25,730



28,466



25,834



27,687



29,168


Goodwill

137,890



137,890



137,890



137,890



137,890


Identified intangible assets, net of accumulated amortization

11,357



12,082



12,806



13,544



14,371


Other real estate owned and repossessed assets

1,301



2,412



2,023



1,456



2,463


Other assets*

89,649



80,111



79,526



80,479



78,945


Total assets*

$

5,839,529



$

5,782,934



$

5,755,146



$

5,800,948



$

5,718,944


LIABILITIES AND STOCKHOLDERS' EQUITY










Deposits:










Non-interest-bearing deposits:










Demand checking accounts

$

785,210



$

783,331



$

729,932



$

726,118



$

705,604


Interest-bearing deposits:










NOW accounts

254,767



247,172



237,200



235,063



220,766


Savings accounts

500,104



532,184



571,030



531,727



532,790


Money market accounts

1,540,104



1,523,798



1,525,053



1,518,490



1,522,612


Certificate of deposit accounts

1,064,392



1,042,923



1,051,580



946,708



907,432


Total interest-bearing deposits

3,359,367



3,346,077



3,384,863



3,231,988



3,183,600


Total deposits

4,144,577



4,129,408



4,114,795



3,958,106



3,889,204


Borrowed funds:










Advances from the FHLBB

848,913



823,452



806,491



1,004,026



1,027,211


Subordinated debentures and notes

82,873



82,850



82,806



82,763



82,763


Other borrowed funds

28,434



31,346



35,628



39,615



22,891


Total borrowed funds

960,220



937,648



924,925



1,126,404



1,132,865


Mortgagors' escrow accounts

7,996



7,494



8,414



8,501



8,757


Accrued expenses and other liabilities

57,996



49,792



51,046



61,332



50,430


Total liabilities

5,170,789



5,124,342



5,099,180



5,154,343



5,081,256


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

616,252



618,044



617,845



617,475



616,997


Retained earnings, partially restricted*

102,684



96,128



90,589



84,860



79,959


Accumulated other comprehensive income (loss)

1,191



(1,775)



1,747



(1,622)



(4,681)


Treasury stock, at cost;










4,861,085 shares, 5,048,525 shares, 5,042,238 shares, 5,040,571 shares, and 5,035,956  shares, respectively

(56,202)



(58,372)



(58,301)



(58,282)



(58,228)


Unallocated common stock held by the Employee Stock Ownership Plan;










222,645 shares, 232,224 shares, 241,803 shares, 251,382 shares, and 261,453 shares respectively

(1,214)



(1,266)



(1,318)



(1,370)



(1,425)


Total Brookline Bancorp, Inc. stockholders' equity*

663,468



653,516



651,319



641,818



633,379


Noncontrolling interest in subsidiary

5,272



5,076



4,647



4,787



4,309


Total stockholders' equity*

668,740



658,592



655,966



646,605



637,688


Total liabilities and stockholders' equity*

$

5,839,529



$

5,782,934



$

5,755,146



$

5,800,948



$

5,718,944












(*) 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


September 30,
2015


June 30,
2015


March 31,
2015


December 31,
2014


September 30,
2014


(In Thousands Except Share Data)

Interest and dividend income:










Loans and leases

$

52,725



$

51,684



$

53,381



$

52,637



$

51,769


Debt securities

2,866



2,931



2,683



2,596



2,312


Marketable and restricted equity securities

1,079



491



524



564



520


Short-term investments

17



60



21



29



15


Total interest and dividend income

56,687



55,166



56,609



55,826



54,616


Interest expense:










Deposits

4,326



4,296



4,304



4,320



4,248


Borrowed funds

3,774



3,698



3,777



3,930



3,044


Total interest expense

8,100



7,994



8,081



8,250



7,292


Net interest income

48,587



47,172



48,528



47,576



47,324


Provision for credit losses

1,755



1,913



2,263



1,724



2,034


Net interest income after provision for credit losses

46,832



45,259



46,265



45,852



45,290


Non-interest income:










Deposit fees

2,261



2,195



2,066



2,177



2,352


Loan fees

205



271



342



286



227


Loan level derivative income, net

900



941





562



322


Gain/(loss) on sales of securities, net







78




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

446



279



869



368



564


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









(2)


Litigation settlement









1,412


Other

972



1,181



1,193



1,070



1,314


Total non-interest income*

4,784



4,867



4,470



4,541



6,189


Non-interest expense:










Compensation and employee benefits

17,875



17,085



17,524



18,216



18,258


Occupancy

3,535



3,437



3,472



3,401



3,334


Equipment and data processing

3,600



3,680



4,020



4,102



4,193


Professional services

984



1,163



1,094



1,159



991


FDIC insurance

929



831



867



782



873


Advertising and marketing

878



823



748



872



745


Amortization of identified intangible assets

725



724



738



827



828


Other

2,744



2,709



2,863



3,096



2,692


Total non-interest expense

31,270



30,452



31,326



32,455



31,914


Income before provision for income taxes*

20,346



19,674



19,409



17,938



19,565


Provision for income taxes*

6,897



7,115



7,104



6,586



7,163


Net income before noncontrolling interest in subsidiary*

13,449



12,559



12,305



11,352



12,402


Less net income attributable to noncontrolling interest in subsidiary

561



694



602



477



662


Net income attributable to Brookline Bancorp, Inc.*

$

12,888



$

11,865



$

11,703



$

10,875



$

11,740


Earnings per common share:*










Basic

$

0.18



$

0.17



$

0.17



$

0.16



$

0.17


Diluted

$

0.18



$

0.17



$

0.17



$

0.16



$

0.17


Weighted average common shares outstanding during the period:












Basic

70,129,056



70,049,829



70,036,090



70,024,495



69,989,909


Diluted

70,240,020



70,215,850



70,164,105



70,130,243



70,088,987


Dividends declared per common share

$

0.090



$

0.090



$

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)




Nine Months Ended September 30,


2015


2014


(In Thousands Except Share Data)

Interest and dividend income:




Loans and leases

$

157,790



$

154,144


Debt securities

8,480



6,931


Marketable and restricted equity securities

2,094



1,508


Short-term investments

98



73


Total interest and dividend income

168,462



162,656


Interest expense:




Deposits

12,926



12,740


Borrowed funds

11,249



8,424


Total interest expense

24,175



21,164


Net interest income

144,287



141,492


Provision for credit losses

5,931



6,753


Net interest income after provision for credit losses

138,356



134,739


Non-interest income:




Deposit Fees

6,522



6,515


Loan Fees

818



724


Loan level derivative income, net

1,841



384


Loss on sales of securities, net



(13)


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

1,594



1,283


Gain on sale/disposals of premises and equipment, net



1,502


Other

3,346



5,244


Total non-interest income*

14,121



15,639


Non-interest expense:




Compensation and employee benefits

52,484



53,585


Occupancy

10,444



10,893


Equipment and data processing

11,300



12,918


Professional services

3,241



4,198


FDIC insurance

2,627



2,580


Advertising and marketing

2,449



2,186


Amortization of identified intangible assets

2,187



2,516


Other

8,316



7,829


Total non-interest expense

93,048



96,705


Income before provision for income taxes*

59,429



53,673


Provision for income taxes*

21,116



19,700


Net income before noncontrolling interest in subsidiary*

38,313



33,973


Less net income attributable to noncontrolling interest in subsidiary

1,857



1,560


Net income attributable to Brookline Bancorp, Inc.*

$

36,456



$

32,413


Earnings per common share:




Basic

$

0.52



$

0.46


Diluted

$

0.52



$

0.46


Weighted average common shares outstanding during the period:



Basic

70,071,999



69,918,248


Diluted

70,207,983



70,029,383


Dividends declared per common share

$

0.265



$

0.255


(*) 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


September 30,
2015


June 30,
2015


March 31,
2015


December 31,
2014


September 30,
2014


(Dollars in Thousands)

NONPERFORMING ASSETS:










Loans and leases accounted for on a nonaccrual basis:










Commercial real estate mortgage

$

3,155



$

3,174



$

3,250



$

1,009



$

3,174


Multi-family mortgage

309



309







299


Total commercial real estate loans

3,464



3,483



3,250



1,009



3,473












Commercial

8,326



12,316



12,039



5,196



6,071


Equipment financing

2,896



2,639



2,321



3,223



2,756


Total commercial loans and leases

11,222



14,955



14,360



8,419



8,827












Indirect automobile loans

629



417



468



645



474












Residential mortgage

2,539



2,421



2,632



1,682



2,636


Home equity

1,818



2,144



1,979



1,918



1,865


Other consumer

52



42



45



41



47


Total consumer loans

4,409



4,607



4,656



3,641



4,548












Total nonaccrual loans and leases

19,724



23,462



22,734



13,714



17,322












Other real estate owned

1,149



1,676



1,043



953



1,536


Other repossessed assets

152



736



980



503



927


Total nonperforming assets

$

21,025



$

25,874



$

24,757



$

15,170



$

19,785












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

$

8,792



$

10,220



$

8,061



$

6,008



$

3,919












Troubled debt restructurings on accrual

17,746



14,205



14,184



14,815



15,174


Troubled debt restructurings on nonaccrual

5,960



5,981



6,126



5,625



5,609


Total troubled debt restructurings

$

23,706



$

20,186



$

20,310



$

20,440



$

20,783












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

0.41

%


0.50

%


0.49

%


0.28

%


0.37

%

Nonperforming assets as a percentage of total assets*

0.36

%


0.45

%


0.43

%


0.26

%


0.35

%











PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:














Allowance for loan and lease losses at beginning of period

$

56,398



$

55,106



$

53,659



$

52,822



$

51,686


Charge-offs

(1,931)



(1,029)



(1,665)



(1,068)



(1,136)


Recoveries

332



528



811



194



343


Net charge-offs

(1,599)



(501)



(854)



(874)



(793)


Provision for loan and lease losses

1,673



1,793



2,301



1,711



1,929


Allowance for loan and lease losses at end of period

$

56,472



$

56,398



$

55,106



$

53,659



$

52,822












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

1.17

%


1.19

%


1.19

%


1.11

%


1.12

%

Allowance for loan and lease losses related to originated loans and leases as a percentage of originated loans and leases (non-GAAP)

1.25

%


1.27

%


1.28

%


1.20

%


1.26

%











NET CHARGE-OFFS:










Commercial real estate loans

$



$

162



$

388



$

62



$

64


Commercial loans and leases

1,276



151



238



480



348


Indirect automobile loans

117



(13)



239



281



208


Consumer loans

206



201



(11)



51



173


Total net charge-offs

$

1,599



$

501



$

854



$

874



$

793












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

0.13

%


0.04

%


0.07

%


0.07

%


0.07

%

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

 

 

BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Average Yields / Costs (Unaudited)


 Three Months Ended


September 30, 2015


June 30, 2015


September 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)

$

587,804



$

2,904



1.98

%


$

591,120



$

2,941



1.99

%


$

522,911



$

2,312



1.77

%

Marketable and restricted equity securities (2)

76,530



1,111



5.81

%


76,332



493



2.59

%


74,977



521



2.78

%

Short-term investments

36,163



17



0.19

%


85,737



60



0.28

%


42,421



15



0.14

%

Total investments

700,497



4,032



2.30

%


753,189



3,494



1.86

%


640,309



2,848



1.78

%

Loans and Leases:


















Commercial real estate loans (3)

2,531,729



26,739



4.22

%


2,505,925



26,391



4.21

%


2,357,921



25,984



4.37

%

Commercial loans (3)

636,756



6,570



4.05

%


639,609



6,394



3.96

%


544,440



5,458



3.94

%

Equipment financing (3)

664,010



11,300



6.81

%


627,032



10,793



6.89

%


563,918



9,664



6.84

%

Indirect automobile loans (3)

17,872



182



4.05

%


21,171



218



4.13

%


371,123



2,929



3.13

%

Residential mortgage loans (3)

613,678



5,437



3.54

%


589,171



5,260



3.57

%


570,505



5,087



3.54

%

Other consumer loans (3)

315,402



2,707



3.40

%


308,932



2,838



3.68

%


284,206



2,818



3.93

%

Total loans and leases

4,779,447



52,935



4.43

%


4,691,840



51,894



4.42

%


4,692,113



51,940



4.43

%

Total interest-earning assets

5,479,944



56,967



4.16

%


5,445,029



55,388



4.07

%


5,332,422



54,788



4.11

%

Allowance for loan and lease losses

(56,833)







(55,427)







(52,423)






Non-interest-earning assets*

367,358







373,018







374,793






Total assets*

$

5,790,469







$

5,762,620







$

5,654,792
























Liabilities and Stockholders' Equity:


















Interest-bearing liabilities:


















Deposits:


















NOW accounts

$

246,163



44



0.07

%


$

248,786



45



0.07

%


$

219,811



43



0.08

%

Savings accounts

516,877



257



0.20

%


554,618



263



0.19

%


513,912



299



0.23

%

Money market accounts

1,550,477



1,664



0.43

%


1,544,877



1,693



0.44

%


1,534,552



1,957



0.51

%

Certificates of deposit

1,043,418



2,361



0.90

%


1,049,297



2,295



0.88

%


900,751



1,949



0.86

%

Total interest-bearing deposits

3,356,935



4,326



0.51

%


3,397,578



4,296



0.51

%


3,169,026



4,248



0.53

%

Borrowings


















Advances from the FHLBB

801,379



2,495



1.22

%


782,434



2,415



1.22

%


1,036,190



2,740



1.03

%

Subordinated debentures and notes

82,866



1,251



6.04

%


82,827



1,250



6.03

%


21,257



292



5.49

%

Other borrowed funds

32,134



28



0.34

%


34,546



33



0.39

%


25,385



12



0.18

%

Total borrowings

916,379



3,774



1.61

%


899,807



3,698



1.63

%


1,082,832



3,044



1.10

%

Total interest-bearing liabilities

4,273,314



8,100



0.75

%


4,297,385



7,994



0.75

%


4,251,858



7,292



0.68

%

Non-interest-bearing liabilities:


















Demand checking accounts

793,785







750,827







717,239






Other non-interest-bearing liabilities

58,414







54,352







48,236






Total liabilities

5,125,513







5,102,564







5,017,333






Brookline Bancorp, Inc. stockholders' equity*

659,761







655,223







633,406






Noncontrolling interest in subsidiary

5,195







4,833







4,053






Total liabilities and equity*

$

5,790,469







$

5,762,620







$

5,654,792






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



48,867



3.41

%




47,394



3.32

%




47,496



3.43

%

Less adjustment of tax-exempt income



280







222







172




Net interest income



$

48,587







$

47,172







$

47,324




Net interest margin (5)





3.54

%






3.49

%






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.

(*) 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)


Nine Months Ended


September 30, 2015


September 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)

$

577,967



$

8,529



1.97

%


$

517,091



$

6,935



1.79

%

Marketable and restricted equity securities (2)

76,218



2,126



3.72

%


70,809



1,515



2.85

%

Short-term investments

57,197



98



0.23

%


41,689



73



0.23

%

Total investments

711,382



10,753



2.02

%


629,589



8,523



1.80

%

Loans and Leases:












Commercial real estate loans (3)

2,504,739



79,375



4.23

%


2,291,952



77,081



4.46

%

Commercial loans (3)

629,115



19,471



4.09

%


507,612



15,397



4.01

%

Equipment financing (3)

634,310



32,637



6.86

%


543,691



29,856



7.33

%

Indirect automobile loans (3)

106,210



2,542



3.20

%


376,765



9,225



3.27

%

Residential mortgage loans (3)

593,371



16,005



3.60

%


545,275



14,814



3.63

%

Other consumer loans (3)

307,878



8,373



3.63

%


276,466



8,230



3.98

%

Total loans and leases

4,775,623



158,403



4.42

%


4,541,761



154,603



4.54

%

Total interest-earning assets

5,487,005



169,156



4.11

%


5,171,350



163,126



4.21

%

Allowance for loan and lease losses

(55,536)







(50,785)






Non-interest-earning assets*

370,038







367,824






Total assets*

$

5,801,507







$

5,488,389


















Liabilities and Stockholders' Equity:












Interest-bearing liabilities:












Deposits:












NOW accounts

$

244,253



132



0.07

%


$

217,168



126



0.08

%

Savings accounts

537,606



793



0.20

%


515,433



905



0.23

%

Money market accounts

1,544,085



5,173



0.45

%


1,523,269



5,852



0.51

%

Certificates of deposit

1,042,111



6,828



0.88

%


909,647



5,857



0.86

%

Total interest-bearing deposits

3,368,055



12,926



0.51

%


3,165,517



12,740



0.54

%

Borrowings












Advances from the FHLBB

841,196



7,414



1.16

%


911,748



7,873



1.14

%

Subordinated debentures and notes

82,826



3,749



6.03

%


13,249



490



4.93

%

Other borrowed funds

34,808



86



0.33

%


26,849



61



0.30

%

Total borrowings

958,830



11,249



1.55

%


951,846



8,424



1.17

%

Total interest-bearing liabilities

4,326,885



24,175



0.75

%


4,117,363



21,164



0.69

%

Non-interest-bearing liabilities:












Demand checking accounts

757,811







694,272






Other non-interest-bearing liabilities

57,328







44,858






Total liabilities

5,142,024







4,856,493






Brookline Bancorp, Inc. stockholders' equity*

654,596







627,750






Noncontrolling interest in subsidiary

4,887







4,146






Total liabilities and equity*

$

5,801,507







$

5,488,389






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



144,981



3.36

%




141,962



3.52

%

Less adjustment of tax-exempt income



694







470




Net interest income



$

144,287







$

141,492




Net interest margin (5)





3.53

%






3.67

%













(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


September 30,
2015


June 30,
2015


March 31,
2015


December 31,
2014


September 30,
2014


(Dollars in Thousands)











Net income, as reported*

$

12,888



$

11,865



$

11,703



$

10,875



$

11,740












Average total assets*

$

5,790,469



$

5,762,620



$

5,852,114



$

5,757,715



$

5,654,792


Less: Average goodwill and average identified intangible assets, net

149,669



150,385



151,125



151,932



152,755


Average tangible assets*

$

5,640,800



$

5,612,235



$

5,700,989



$

5,605,783



$

5,502,037












Return on average tangible assets (annualized)*

0.91

%


0.85

%


0.82

%


0.78

%


0.85

%











Average total stockholders' equity*

$

659,761



$

655,223



$

648,683



$

640,706



$

633,406


Less: Average goodwill and average identified intangible assets, net

149,669



150,385



151,125



151,932



152,755


Average tangible stockholders' equity*

$

510,092



$

504,838



$

497,558



$

488,774



$

480,651












Return on average tangible stockholders' equity (annualized)*

10.11

%


9.40

%


9.41

%


8.90

%


9.77

%











Brookline Bancorp, Inc. stockholders' equity*

$

663,468



$

653,516



$

651,319



$

641,818



$

633,379


Less:










Goodwill

137,890



137,890



137,890



137,890



137,890


Identified intangible assets, net

11,357



12,082



12,806



13,544



14,371


Tangible stockholders' equity*

$

514,221



$

503,544



$

500,623



$

490,384



$

481,118












Total assets*

$

5,839,529



$

5,782,934



$

5,755,146



$

5,800,948



$

5,718,944


Less:










Goodwill

137,890



137,890



137,890



137,890



137,890


Identified intangible assets, net

11,357



12,082



12,806



13,544



14,371


Tangible assets*

$

5,690,282



$

5,632,962



$

5,604,450



$

5,649,514



$

5,566,683












Tangible stockholders' equity to tangible assets*

9.04

%


8.94

%


8.93

%


8.68

%


8.64

%











Tangible stockholders' equity*

$

514,221



$

503,544



$

500,623



$

490,384



$

481,118












Number of common shares issued

75,744,445



75,744,445



75,744,445



75,744,445



75,744,445


Less:










Treasury shares

4,861,085



5,048,525



5,042,238



5,040,571



5,035,956


Unallocated ESOP shares

222,645



232,224



241,803



251,382



261,453


Unvested restricted shares

486,999



406,566



418,035



419,702



427,952


Number of common shares outstanding

70,173,716



70,057,130



70,042,369



70,032,790



70,019,084












Tangible book value per common share*

$

7.33



$

7.19



$

7.15



$

7.00



$

6.87












Allowance for loan and lease losses

$

56,472



$

56,398



$

55,106



$

53,659



$

52,822


Less:










Allowance for acquired loans and leases losses

2,048



2,655



2,911



2,848



1,933


Allowance for originated loan and lease losses

$

54,424



$

53,743



$

52,195



$

50,811



$

50,889












Total loans and leases

$

4,829,152



$

4,729,581



$

4,634,594



$

4,822,607



$

4,736,028


Less:










Total acquired loans and leases

457,922



509,028



561,103



590,654



709,404


Total originated loans and leases

$

4,371,230



$

4,220,553



$

4,073,491



$

4,231,953



$

4,026,624












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

1.25

%


1.27

%


1.28

%


1.20

%


1.26

%

(*) 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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SOURCE Brookline Bancorp, Inc.

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