BROOKLINE BANCORP, INC. BOSTON, July 20, 2016 /PRNewswire/ -- Brookline Bancorp, Inc. (NASDAQ: BRKL) (the "Company") today announced net income of $12.7 million, or $0.18 per basic and diluted share, for the second quarter of 2016, 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 have delivered another solid quarter for our stockholders with strong loan and deposit growth. I am 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 at June 30, 2016 increased $115.5 million to $6.3 billion from $6.2 billion at March 31, 2016, and increased $254.2 million from $6.0 billion at December 31, 2015. The increase in total assets of 7.5 percent on an annualized basis during the second quarter of 2016 was primarily driven by increases in loans and leases. At June 30, 2016, total loans and leases were $5.3 billion, representing an increase of $128.6 million from March 31, 2016, and an increase of $263.5 million from December 31, 2015. During the second quarter of 2016, total loans and leases grew 10.0 percent on an annualized basis. Strong loan growth continued in the commercial real estate and commercial loan and lease portfolios, which increased $116.2 million during the second quarter of 2016, or 11.2 percent on an annualized basis.
Investment securities at June 30, 2016 decreased $17.0 million to $602.6 million, representing 9.6 percent of total assets, as compared to $619.6 million, or 10.0 percent of total assets, at March 31, 2016, and decreased approximately $4.4 million from $607.0 million, or 10.0 percent of total assets, at December 31, 2015.
Total deposits at June 30, 2016 increased $91.7 million to $4.5 billion from $4.4 billion at March 31, 2016 and increased $179.1 million from $4.3 billion at December 31, 2015. Core deposits, which consist of demand checking, NOW, savings, and money market accounts, increased $48.8 million from March 31, 2016 and increased $116.0 million from December 31, 2015. The average cost of interest bearing deposits increased slightly to 0.55 percent for the three months ended June 30, 2016 from 0.54 percent for the three months ended March 31, 2016.
Total borrowings at June 30, 2016 remained consistent at $1.0 billion with March 31, 2016 and increased $45.4 million from $983.0 million at December 31, 2015.
The ratio of stockholders' equity to total assets was 10.95 percent at June 30, 2016, as compared to 11.01 percent at March 31, 2016, and 11.05 percent at December 31, 2015, respectively. The ratio of tangible stockholders' equity to tangible assets was 8.82 percent at June 30, 2016, as compared to 8.83 percent at March 31, 2016, and 8.81 percent at December 31, 2015.
NET INTEREST INCOME
Net interest income increased $1.1 million to $50.3 million during the second quarter of 2016 from the first quarter driven by the growth in interest earning assets as the net interest margin decreased 1 basis point to 3.44 percent.
PROVISION FOR LOAN AND LEASE LOSSES
The Company recorded a provision for loan and lease losses of $2.7 million for the quarter ended June 30, 2016, compared to $2.3 million for the quarter ended March 31, 2016.
Net charge-offs increased $3.6 million to $4.0 million for the second quarter of 2016 from $0.4 million for the first quarter of 2016 due to a $3.4 million charge off of a commercial relationship which had a specific reserve of $3.3 million recorded in a prior period. As a result, the ratio of net charge-offs to average loans on an annualized basis increased to 31 basis points for the second quarter of 2016 from 3 basis points for the first quarter of 2016.
The allowance for loan and lease losses represented 1.09 percent of total loans and leases at June 30, 2016, compared to 1.14 percent at March 31, 2016 and December 31, 2015. The allowance for loan and lease losses related to originated loans and leases as a percentage of originated loans and leases was 1.13 percent at June 30, 2016, compared to 1.20 percent at March 31, 2016 and December 31, 2015.
NON-INTEREST INCOME
Non-interest income for the quarter ended June 30, 2016 decreased $1.1 million to $5.4 million from $6.5 million for the first quarter. The decrease was primarily driven by a decrease of $0.6 million in gain on sales of loans and leases held-for-sale and a decrease of $0.4 million due to lower loan level derivative income.
NON-INTEREST EXPENSE
Non-interest expense for the quarter ended June 30, 2016 increased $0.2 million to $32.3 million from $32.1 million for the quarter ended March 31, 2016. The Company's efficiency ratio was 57.97 percent at June 30, 2016, compared with 57.57 percent at March 31, 2016.
PROVISION FOR INCOME TAXES
The effective tax rate was 35.8 percent for the three months and six months ended June 30, 2016.
RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY
The return on average assets decreased during the second quarter of 2016 to 0.81 percent at June 30, 2016 from 0.84 percent at March 31, 2016. The return on average tangible assets decreased to 0.83 percent for the second quarter of 2016 from 0.86 percent for the first quarter of 2016.
The return on average stockholders' equity decreased during the second quarter of 2016 to 7.38 percent from 7.57 percent for the first quarter of 2016. The return on average tangible stockholders' equity decreased to 9.40 percent for the second quarter of 2016 from 9.69 percent for the first quarter of 2016.
ASSET QUALITY
The ratio of nonperforming loans and leases to total loans and leases was 0.61 percent at June 30, 2016 as compared to 0.62 percent at March 31, 2016. Nonperforming loans and leases at June 30, 2016 remained consistent at $31.9 million with March 31, 2016. Nonperforming assets at June 30, 2016 increased $0.2 million to $32.7 million, or 0.52 percent of total assets, from $32.5 million, or 0.53 percent of total assets, at March 31, 2016.
DIVIDEND DECLARED
The Company's Board of Directors approved a dividend of $0.09 per share for the quarter ended June 30, 2016. The dividend will be paid on August 19, 2016 to stockholders of record on August 5, 2016.
CONFERENCE CALL
The Company will conduct a conference call/webcast at 1:30 PM Eastern Daylight Time on Thursday, July 21, 2016 to discuss the results for the quarter, business highlights and outlook. The call can be accessed by dialing 877-504-4120 (United States) or 412-902-6650 (internationally). A recorded playback of the call will be available for one week following the call at 877-344-7529 (United States) or 412-317-0088 (internationally). The passcode for the playback is 10088672. The call will be available live and in a recorded version on the Company's website under "Investor Relations" at www.brooklinebancorp.com.
ABOUT BROOKLINE BANCORP, INC.
Brookline Bancorp, Inc., a bank holding company with $6.3 billion in assets and branch locations in Massachusetts and Rhode Island, is headquartered in Boston, Massachusetts and operates as the holding company for Brookline Bank, Bank Rhode Island, and First Ipswich Bank (the "banks"). The Company provides commercial and retail banking services, cash management and investment services to customers throughout Central New England. More information about Brookline Bancorp, Inc. and its banks can be found at the following websites: www.brooklinebank.com, www.bankri.com, and www.firstipswich.com.
FORWARD-LOOKING STATEMENTS
Certain statements contained in this press release that are not historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties. The Company's actual results could differ materially from those projected in the forward-looking statements as a result of, among others, the risks outlined in the Company's Annual Report on Form 10-K, as updated by its Quarterly Reports on Form 10-Q and other filings submitted to the Securities and Exchange Commission ("SEC"). The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.
BASIS OF PRESENTATION
The Company's consolidated financial statements have been prepared in conformity with generally accepted accounting principles ("GAAP") as set forth by the Financial Accounting Standards Board in its Accounting Standards Codification and through the rules and interpretive releases of the SEC under the authority of federal securities laws. Certain amounts previously reported have been reclassified to conform to the current period's presentation.
NON-GAAP FINANCIAL MEASURES
The Company uses certain non-GAAP financial measures, such as the allowance for loan and lease losses related to originated loans and leases as a percentage of originated loans and leases, tangible book value per common share, tangible stockholders' equity to tangible assets, return on average tangible assets and return on average tangible stockholders' equity. These non-GAAP financial measures provide information for investors to effectively analyze financial trends of ongoing business activities, and to enhance comparability with peers across the financial services sector. A detailed reconciliation table of the Company's GAAP to the non-GAAP measures is attached.
Contact:
Carl M. Carlson
Brookline Bancorp, Inc.
Chief Financial Officer
(617) 425-5331
ccarlson@brkl.com
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Selected Financial Highlights (Unaudited)
At and for the Three Months Ended
---------------------------------
June 30, March 31, December 31, September 30, June 30,
2016 2016 2015 2015 2015
---- ---- ---- ---- ----
(Dollars In Thousands Except per Share Data)
Earnings Data:
Net interest income $50,257 $49,203 $50,078 $48,587 $47,172
Provision for credit losses 2,545 2,378 1,520 1,755 1,913
Non-interest income 5,375 6,469 6,063 4,784 4,867
Non-interest expense 32,250 32,053 32,329 31,270 30,452
Income before provision for income taxes 20,837 21,241 22,292 20,346 19,674
Net income attributable to Brookline Bancorp, Inc. 12,654 12,812 13,327 12,888 11,865
Performance Ratios:
Net interest margin (1) 3.44 % 3.45 % 3.54 % 3.54 % 3.49 %
Interest-rate spread (1) 3.25 % 3.26 % 3.42 % 3.41 % 3.32 %
Return on average assets 0.81 % 0.84 % 0.89 % 0.89 % 0.82 %
Return on average tangible assets (non-GAAP) 0.83 % 0.86 % 0.92 % 0.91 % 0.85 %
Return on average stockholders' equity 7.38 % 7.57 % 7.99 % 7.81 % 7.24 %
Return on average tangible stockholders' equity (non-GAAP) 9.40 % 9.69 % 10.28 % 10.11 % 9.40 %
Efficiency ratio (2) 57.97 % 57.57 % 57.59 % 58.59 % 58.52 %
Per Common Share Data:
Net income - Basic $0.18 $0.18 $0.19 $0.18 $0.17
Net income - Diluted 0.18 0.18 0.19 0.18 0.17
Cash dividends declared 0.090 0.090 0.090 0.090 0.090
Book value per share (end of period) 9.82 9.69 9.51 9.45 9.33
Tangible book value per share (end of period) (non-GAAP) 7.73 7.59 7.39 7.33 7.19
Stock price (end of period) 11.03 11.01 11.50 10.14 11.29
Balance Sheet:
Total assets $6,296,502 $6,181,030 $6,042,338 $5,839,529 $5,782,934
Total loans and leases 5,259,038 5,130,445 4,995,540 4,829,152 4,729,581
Total deposits 4,485,154 4,393,456 4,306,018 4,144,577 4,129,408
Brookline Bancorp, Inc. stockholders' equity 689,656 680,417 667,485 663,468 653,516
Asset Quality:
Nonperforming assets $32,654 $32,470 $20,676 $21,025 $25,874
Nonperforming assets as a percentage of total assets 0.52 % 0.53 % 0.34 % 0.36 % 0.45 %
Allowance for loan and lease losses $57,258 $58,606 $56,739 $56,472 $56,398
Allowance for loan and lease losses as a percentage of total loans and leases 1.09 % 1.14 % 1.14 % 1.17 % 1.19 %
Net loan and lease charge-offs $4,018 $400 $1,389 $1,599 $501
Net loan and lease charge-offs as a percentage of average loans and leases (annualized) 0.31 % 0.03 % 0.11 % 0.13 % 0.04 %
Capital Ratios:
Stockholders' equity to total assets 10.95 % 11.01 % 11.05 % 11.36 % 11.30 %
Tangible stockholders' equity to tangible assets (non-GAAP) 8.82 % 8.83 % 8.81 % 9.04 % 8.94 %
(1) Calculated on a fully tax-
equivalent basis.
(2) Calculated as non-
interest expense as a
percentage of net interest
income plus non-interest
income.
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets (Unaudited)
June 30, March 31, December 31, September 30, June 30,
2016 2016 2015 2015 2015
---- ---- ---- ---- ----
ASSETS (In Thousands Except Share Data)
Cash and due from banks $22,677 $31,127 $28,753 $27,299 $43,363
Short-term investments 47,265 42,795 46,736 19,745 48,513
------ ------ ------ ------ ------
Total cash and cash equivalents 69,942 73,922 75,489 47,044 91,876
------ ------ ------ ------ ------
Investment securities available-for-sale 532,967 536,182 513,201 526,764 530,476
Investment securities held-to-maturity 69,590 83,409 93,757 63,097 60,511
------ ------ ------ ------ ------
Total investment securities 602,557 619,591 606,958 589,861 590,987
------- ------- ------- ------- -------
Loans and leases held-for-sale 1,585 3,190 13,383 10,992 12,482
Loans and leases:
Commercial real estate loans:
Commercial real estate mortgage 1,974,289 1,958,057 1,875,592 1,810,550 1,758,281
Multi-family mortgage 721,771 682,317 658,480 614,560 627,571
Construction 144,463 126,024 130,322 138,261 127,506
------- ------- ------- ------- -------
Total commercial real estate loans 2,840,523 2,766,398 2,664,394 2,563,371 2,513,358
--------- --------- --------- --------- ---------
Commercial loans and leases:
Commercial 628,281 616,290 592,531 580,711 578,548
Equipment financing 750,503 721,621 721,890 684,331 648,447
Condominium association 61,962 60,728 59,875 57,562 55,185
------ ------ ------ ------ ------
Total commercial loans and leases 1,440,746 1,398,639 1,374,296 1,322,604 1,282,180
--------- --------- --------- --------- ---------
Indirect automobile loans 9,281 11,220 13,678 16,294 19,377
----- ------ ------ ------ ------
Consumer loans:
Residential mortgage 624,423 617,501 616,449 606,063 603,073
Home equity 333,527 318,859 314,553 308,371 299,396
Other consumer 10,538 17,828 12,170 12,449 12,197
------ ------ ------ ------ ------
Total consumer loans 968,488 954,188 943,172 926,883 914,666
------- ------- ------- ------- -------
Total loans and leases 5,259,038 5,130,445 4,995,540 4,829,152 4,729,581
Allowance for loan and lease losses (57,258) (58,606) (56,739) (56,472) (56,398)
------- ------- ------- ------- -------
Net loans and leases 5,201,780 5,071,839 4,938,801 4,772,680 4,673,183
--------- --------- --------- --------- ---------
Restricted equity securities 64,677 65,438 66,117 75,553 75,553
Premises and equipment, net of accumulated depreciation 76,131 77,128 78,156 77,472 77,892
Deferred tax asset 22,301 24,181 26,817 25,730 28,466
Goodwill 137,890 137,890 137,890 137,890 137,890
Identified intangible assets, net of accumulated amortization 9,377 9,998 10,633 11,357 12,082
Other real estate owned and repossessed assets 751 565 1,343 1,301 2,412
Other assets 109,511 97,288 86,751 89,649 80,111
------- ------ ------ ------ ------
Total assets $6,296,502 $6,181,030 $6,042,338 $5,839,529 $5,782,934
========== ========== ========== ========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest-bearing deposits:
Demand checking accounts $852,869 $793,195 $799,117 $785,210 $783,331
Interest-bearing deposits:
NOW accounts 295,126 286,920 283,972 254,767 247,172
Savings accounts 557,607 555,843 540,788 500,104 532,184
Money market accounts 1,628,550 1,649,348 1,594,269 1,540,104 1,523,798
Certificate of deposit accounts 1,151,002 1,108,150 1,087,872 1,064,392 1,042,923
--------- --------- --------- --------- ---------
Total interest-bearing deposits 3,632,285 3,600,261 3,506,901 3,359,367 3,346,077
--------- --------- --------- --------- ---------
Total deposits 4,485,154 4,393,456 4,306,018 4,144,577 4,129,408
--------- --------- --------- --------- ---------
Borrowed funds:
Advances from the FHLBB 904,685 905,953 861,866 848,913 823,452
Subordinated debentures and notes 83,021 82,978 82,936 82,873 82,850
Other borrowed funds 40,733 39,378 38,227 28,434 31,346
------ ------ ------ ------ ------
Total borrowed funds 1,028,439 1,028,309 983,029 960,220 937,648
--------- --------- ------- ------- -------
Mortgagors' escrow accounts 7,419 7,905 7,516 7,996 7,494
Accrued expenses and other liabilities 79,541 64,566 72,289 57,996 49,792
------ ------ ------ ------ ------
Total liabilities 5,600,553 5,494,236 5,368,852 5,170,789 5,124,342
--------- --------- --------- --------- ---------
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 617,738 617,477 616,899 616,252 618,044
Retained earnings, partially restricted 122,469 116,151 109,675 102,684 96,128
Accumulated other comprehensive (loss) income 5,969 3,352 (2,476) 1,191 (1,775)
Treasury stock, at cost;
4,862,193 shares, 4,861,554 shares, 4,861,554 shares, 4,861,085 shares, and 5,048,525 shares, respectively (56,215) (56,208) (56,208) (56,202) (58,372)
Unallocated common stock held by the Employee Stock Ownership Plan;
194,880 shares, 203,973 shares, 213,066 shares, 222,645 shares, and 232,224 shares, respectively (1,062) (1,112) (1,162) (1,214) (1,266)
Total Brookline Bancorp, Inc. stockholders' equity 689,656 680,417 667,485 663,468 653,516
Noncontrolling interest in subsidiary 6,293 6,377 6,001 5,272 5,076
----- -----
Total stockholders' equity 695,949 686,794 673,486 668,740 658,592
------- -------
Total liabilities and stockholders' equity $6,296,502 $6,181,030 $6,042,338 $5,839,529 $5,782,934
========== ========== ========== ========== ==========
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
Three Months Ended
------------------
June 30, March 31, December 31, September 30, June 30,
2016 2016 2015 2015 2015
---- ---- ---- ---- ----
(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases $55,369 $54,247 $54,814 $52,725 $51,684
Debt securities 3,075 2,932 2,936 2,866 2,931
Marketable and restricted equity securities 729 680 668 1,079 491
Short-term investments 63 39 30 17 60
--- --- --- --- ---
Total interest and dividend income 59,236 57,898 58,448 56,687 55,166
------ ------ ------ ------ ------
Interest expense:
Deposits 5,018 4,745 4,554 4,326 4,296
Borrowed funds 3,961 3,950 3,816 3,774 3,698
----- ----- ----- ----- -----
Total interest expense 8,979 8,695 8,370 8,100 7,994
----- ----- ----- ----- -----
Net interest income 50,257 49,203 50,078 48,587 47,172
Provision for credit losses 2,545 2,378 1,520 1,755 1,913
----- ----- ----- ----- -----
Net interest income after provision for credit losses 47,712 46,825 48,558 46,832 45,259
------ ------ ------ ------ ------
Non-interest income:
Deposit fees 2,216 2,145 2,208 2,261 2,195
Loan fees 287 330 364 205 271
Loan level derivative income, net 1,210 1,629 1,556 900 941
Gain on sales of loans and leases held-for-sale 345 905 614 446 279
Other 1,317 1,460 1,321 972 1,181
----- ----- ----- --- -----
Total non-interest income 5,375 6,469 6,063 4,784 4,867
----- ----- ----- ----- -----
Non-interest expense:
Compensation and employee benefits 19,083 18,727 18,788 17,875 17,085
Occupancy 3,391 3,526 3,482 3,535 3,437
Equipment and data processing 3,898 3,714 3,537 3,600 3,680
Professional services 962 966 951 984 1,163
FDIC insurance 843 878 883 929 831
Advertising and marketing 853 861 903 878 823
Amortization of identified intangible assets 621 635 724 725 724
Other 2,599 2,746 3,061 2,744 2,709
----- ----- ----- ----- -----
Total non-interest expense 32,250 32,053 32,329 31,270 30,452
------ ------ ------ ------ ------
Income before provision for income taxes 20,837 21,241 22,292 20,346 19,674
Provision for income taxes 7,465 7,599 8,237 6,897 7,115
----- ----- ----- ----- -----
Net income before noncontrolling interest in subsidiary 13,372 13,642 14,055 13,449 12,559
Less net income attributable to noncontrolling interest in subsidiary 718 830 728 561 694
--- --- --- --- ---
Net income attributable to Brookline Bancorp, Inc. $12,654 $12,812 $13,327 $12,888 $11,865
======= ======= ======= ======= =======
Earnings per common share:
Basic $0.18 $0.18 $0.19 $0.18 $0.17
Diluted $0.18 $0.18 $0.19 $0.18 $0.17
Weighted average common shares outstanding during the period:
Basic 70,196,950 70,185,356 70,177,382 70,129,056 70,049,829
Diluted 70,388,438 70,341,843 70,318,657 70,240,020 70,215,850
Dividends declared per common share $0.090 $0.090 $0.090 $0.090 $0.090
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
Six Months Ended June 30,
-------------------------
2016 2015
---- ----
(In Thousands Except Share
Data)
Interest and dividend income:
Loans
and
leases $109,616 $105,065
Debt
securities 6,007 5,614
Marketable
and
restricted
equity
securities 1,409 1,015
Short-
term
investments 102 81
--- ---
Total
interest
and
dividend
income 117,134 111,775
------- -------
Interest expense:
Deposits 9,763 8,600
Borrowed
funds 7,911 7,475
----- -----
Total
interest
expense 17,674 16,075
------ ------
Net
interest
income 99,460 95,700
Provision
for
credit
losses 4,923 4,176
----- -----
Net
interest
income
after
provision
for
credit
losses 94,537 91,524
------ ------
Non-interest income:
Deposit
Fees 4,361 4,261
Loan
Fees 593 613
Loan
level
derivative
income,
net 2,839 941
Gain
on
sales
of
loans
and
leases
held-
for-
sale 1,250 1,148
Other 2,777 2,374
-----
Total
non-
interest
income 11,820 9,337
------ -----
Non-interest expense:
Compensation
and
employee
benefits 37,810 34,609
Occupancy 6,917 6,909
Equipment
and
data
processing 7,588 7,700
Professional
services 1,928 2,257
FDIC
insurance 1,721 1,698
Advertising
and
marketing 1,714 1,571
Amortization
of
identified
intangible
assets 1,256 1,462
Other 5,345 5,572
----- -----
Total
non-
interest
expense 64,279 61,778
------ ------
Income
before
provision
for
income
taxes 42,078 39,083
Provision
for
income
taxes 15,064 14,219
------ ------
Net
income
before
noncontrolling
interest
in
subsidiary 27,014 24,864
Less
net
income
attributable
to
noncontrolling
interest
in
subsidiary 1,548 1,296
----- -----
Net
income
attributable
to
Brookline
Bancorp,
Inc. $25,466 $23,568
======= =======
Earnings per common share:
Basic $0.36 $0.34
Diluted $0.36 $0.34
Weighted average common shares
outstanding during the period:
Basic 70,191,935 70,042,997
Diluted 70,365,923 70,190,015
Dividends
declared
per
common
share $0.180 $0.175
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Asset Quality Analysis (Unaudited)
At and for the Three Months Ended
---------------------------------
June 30, 2016 March 31, 2016 December 31, 2015 September 30, 2015 June 30, 2015
------------- -------------- ----------------- ------------------ -------------
(Dollars in Thousands)
NONPERFORMING ASSETS:
Loans and leases accounted for on a nonaccrual basis:
Commercial real estate mortgage $2,408 $5,440 $5,482 $3,155 $3,174
Multi-family mortgage 291 1,446 291 309 309
Total commercial real estate loans 2,699 6,886 5,773 3,464 3,483
----- ----- ----- ----- -----
Commercial 17,944 15,050 6,264 8,326 12,316
Equipment financing 6,947 5,391 2,610 2,896 2,639
----- ----- ----- ----- -----
Total commercial loans and leases 24,891 20,441 8,874 11,222 14,955
------ ------ ----- ------ ------
Indirect automobile loans 248 308 675 629 417
Residential mortgage 2,048 2,132 2,225 2,539 2,421
Home equity 1,976 2,104 1,757 1,818 2,144
Other consumer 41 34 29 52 42
--- --- --- --- ---
Total consumer loans 4,065 4,270 4,011 4,409 4,607
----- ----- ----- ----- -----
Total nonaccrual loans and leases 31,903 31,905 19,333 19,724 23,462
------ ------ ------ ------ ------
Other real estate owned 407 408 729 1,149 1,676
Other repossessed assets 344 157 614 152 736
--- --- --- --- ---
Total nonperforming assets $32,654 $32,470 $20,676 $21,025 $25,874
======= ======= ======= ======= =======
Loans and leases past due greater than 90 days and still accruing $4,151 $3,512 $8,690 $8,792 $10,220
====== ====== ====== ====== =======
Troubled debt restructurings on accrual 16,848 16,697 17,953 17,746 14,205
Troubled debt restructurings on nonaccrual 14,466 14,614 4,965 5,960 5,981
------ ------ ----- ----- -----
Total troubled debt restructurings $31,314 $31,311 $22,918 $23,706 $20,186
======= ======= ======= ======= =======
Nonperforming loans and leases as a percentage of total loans and leases 0.61 % 0.62 % 0.39 % 0.41 % 0.50 %
Nonperforming assets as a percentage of total assets 0.52 % 0.53 % 0.34 % 0.36 % 0.45 %
PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:
Allowance for loan and lease losses at beginning of period $58,606 $56,739 $56,472 $56,398 $55,106
Charge-offs (4,324) (875) (1,929) (1,931) (1,029)
Recoveries 306 475 540 332 528
--- --- --- --- ---
Net charge-offs (4,018) (400) (1,389) (1,599) (501)
Provision for loan and lease losses 2,670 2,267 1,656 1,673 1,793
----- ----- ----- ----- -----
Allowance for loan and lease losses at end of period $57,258 $58,606 $56,739 $56,472 $56,398
======= ======= ======= ======= =======
Allowance for loan and lease losses as a percentage of total loans and leases 1.09 % 1.14 % 1.14 % 1.17 % 1.19 %
Allowance for loan and lease losses related to originated loans and leases as a percentage of originated loans
and leases (non-GAAP) 1.13 % 1.20 % 1.20 % 1.25 % 1.27 %
NET CHARGE-OFFS:
Commercial real estate loans $1,153 $331 $ - $ - $162
Commercial loans and leases 2,316 64 1,302 1,276 151
Indirect automobile loans (15) 13 3 117 (13)
Consumer loans 564 (8) 84 206 201
--- --- --- --- ---
Total net charge-offs $4,018 $400 $1,389 $1,599 $501
====== ==== ====== ====== ====
Net loan and lease charge-offs as a percentage of average 0.31 % 0.03 % 0.11 % 0.13 % 0.04 %
loans and leases (annualized)
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Average Yields / Costs (Unaudited)
Three Months Ended
------------------
June 30, 2016 March 31, 2016 June 30, 2015
------------- -------------- -------------
Average Balance Interest (1) Average Yield/ Cost Average Balance Interest (1) Average Yield/ Cost Average Balance Interest (1) Average Yield/ Cost
--------------- ----------- ------------------- --------------- ----------- ------------------- --------------- ----------- -------------------
(Dollars in Thousands)
Assets:
Interest-earning assets:
Investments:
Debt securities (2) $605,383 $3,157 2.09 % $604,034 $3,011 1.99 % $591,120 $2,941 1.99 %
Marketable and restricted equity securities (2) 66,422 732 4.41 % 66,887 679 4.07 % 76,332 493 2.59 %
Short-term investments 60,570 63 0.42 % 41,861 39 0.38 % 85,737 60 0.28 %
------ --- ------ --- ------ ---
Total investments 732,375 3,952 2.16 % 712,782 3,729 2.09 % 753,189 3,494 1.86 %
------- ----- ------- ----- ------- -----
Loans and Leases:
Commercial real estate loans (3) 2,784,627 28,278 4.06 % 2,698,098 27,266 4.04 % 2,505,925 26,391 4.21 %
Commercial loans (3) 689,696 6,649 3.82 % 670,671 6,651 3.93 % 639,609 6,394 3.96 %
Equipment financing (3) 730,193 11,751 6.44 % 726,928 11,750 6.47 % 627,032 10,793 6.89 %
Indirect automobile loans (3) 10,255 109 4.27 % 12,493 153 4.93 % 21,171 218 4.13 %
Residential mortgage loans (3) 626,249 5,633 3.60 % 625,351 5,559 3.56 % 589,171 5,260 3.57 %
Other consumer loans (3) 340,796 3,200 3.76 % 330,078 3,117 3.78 % 308,932 2,838 3.68 %
------- ----- ------- ----- ------- -----
Total loans and leases 5,181,816 55,620 4.29 % 5,063,619 54,496 4.30 % 4,691,840 51,894 4.42 %
--------- ------ --------- ------ --------- ------
Total interest-earning assets 5,914,191 59,572 4.03 % 5,776,401 58,225 4.03 % 5,445,029 55,388 4.07 %
--------- ------ --------- ------ --------- ------
Allowance for loan and lease losses (58,789) (57,125) (55,427)
Non-interest-earning assets 382,061 373,582 373,018
------- ------- -------
Total assets $6,237,463 $6,092,858 $5,762,620
========== ========== ==========
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts $294,484 53 0.07 % $279,414 51 0.07 % $248,786 45 0.07 %
Savings accounts 554,474 336 0.24 % 564,681 344 0.25 % 554,618 263 0.19 %
Money market accounts 1,655,843 1,867 0.45 % 1,629,054 1,775 0.44 % 1,544,877 1,693 0.44 %
Certificates of deposit 1,132,272 2,762 0.98 % 1,077,639 2,575 0.96 % 1,049,297 2,295 0.88 %
--------- ----- --------- ----- --------- -----
Total interest-bearing deposits 3,637,073 5,018 0.55 % 3,550,788 4,745 0.54 % 3,397,578 4,296 0.51 %
--------- ----- --------- ----- --------- -----
Borrowings
Advances from the FHLBB 879,499 2,678 1.20 % 863,960 2,669 1.22 % 782,434 2,415 1.22 %
Subordinated debentures and notes 82,997 1,258 6.06 % 82,955 1,256 6.06 % 82,827 1,250 6.03 %
Other borrowed funds 41,305 25 0.24 % 39,624 25 0.26 % 34,546 33 0.39 %
------ --- ------ --- ------ ---
Total borrowings 1,003,801 3,961 1.56 % 986,539 3,950 1.58 % 899,807 3,698 1.63 %
--------- ----- ------- ----- ------- -----
Total interest-bearing liabilities 4,640,874 8,979 0.78 % 4,537,327 8,695 0.77 % 4,297,385 7,994 0.75 %
--------- ----- --------- ----- --------- -----
Non-interest-bearing liabilities:
Demand checking accounts 825,880 798,869 750,827
Other non-interest-bearing liabilities 78,497 73,700 54,352
------ ------ ------
Total liabilities 5,545,251 5,409,896 5,102,564
Brookline Bancorp, Inc. stockholders' equity 685,996 677,101 655,223
Noncontrolling interest in subsidiary 6,216 5,861 4,833
----- ----- -----
Total liabilities and equity $6,237,463 $6,092,858 $5,762,620
========== ========== ==========
Net interest income (tax-equivalent basis) /Interest-rate spread (4) 50,593 3.25 % 49,530 3.26 % 47,394 3.32 %
===== ===== =====
Less adjustment of tax-exempt income 336 327 222
--- --- ---
Net interest income $50,257 $49,203 $47,172
======= ======= =======
Net interest margin (5) 3.44 % 3.45 % 3.49 %
===== ===== =====
(1) Tax-exempt income on
debt securities, equity
securities and revenue bonds
included in commercial real
estate loans is included on
a tax-equivalent basis.
(2) Average balances include
unrealized gains (losses) on
investment securities.
Dividend payments may not be
consistent and average yield
on equity securities may
vary from month to month.
(3) Loans on nonaccrual
status are included in the
average balances.
(4) Interest rate spread
represents the difference
between the yield on
interest-earning assets and
the cost of interest-
bearing liabilities.
(5) Net interest margin
represents net interest
income (tax-equivalent
basis) divided by average
interest-earning assets.
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Average Yields / Costs (Unaudited)
Six Months Ended
----------------
June 30, 2016 June 30, 2015
------------- -------------
Average Balance Interest (1) Average Yield/ Cost Average Balance Interest (1) Average Yield/ Cost
--------------- ----------- ------------------- --------------- ----------- -------------------
(Dollars in Thousands)
Assets:
Interest-earning assets:
Investments:
Debt securities (2) $604,709 $6,168 2.04 % $572,966 $5,625 1.96 %
Marketable and restricted equity securities (2) 66,654 1,411 4.24 % 76,059 1,015 2.67 %
Short-term investments 51,214 102 0.40 % 67,888 81 0.24 %
------ --- ------ ---
Total investments 722,577 7,681 2.13 % 716,913 6,721 1.87 %
------- ----- ------- -----
Loans and Leases:
Commercial real estate loans (3) 2,741,363 55,544 4.05 % 2,491,020 52,636 4.23 %
Commercial loans (3) 680,183 13,300 3.87 % 625,231 12,901 4.11 %
Equipment financing (3) 728,560 23,501 6.45 % 619,214 21,337 6.89 %
Indirect automobile loans (3) 11,374 262 4.63 % 151,110 2,360 3.15 %
Residential mortgage loans (3) 625,800 11,192 3.58 % 583,049 10,568 3.62 %
Other consumer loans (3) 335,436 6,317 3.77 % 304,052 5,666 3.76 %
------- ----- ------- -----
Total loans and leases 5,122,716 110,116 4.30 % 4,773,676 105,468 4.42 %
--------- ------- --------- -------
Total interest-earning assets 5,845,293 117,797 4.03 % 5,490,589 112,189 4.09 %
--------- ------- --------- -------
Allowance for loan and lease losses (57,957) (54,876)
Non-interest-earning assets 377,822 371,408
------- -------
Total assets $6,165,158 $5,807,121
========== ==========
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts $286,949 104 0.07 % $243,283 88 0.07 %
Savings accounts 559,577 680 0.24 % 548,143 536 0.20 %
Money market accounts 1,642,448 3,642 0.45 % 1,540,837 3,509 0.46 %
Certificates of deposit 1,104,956 5,337 0.97 % 1,041,447 4,467 0.86 %
--------- ----- --------- -----
Total interest-bearing deposits 3,593,930 9,763 0.55 % 3,373,710 8,600 0.51 %
--------- ----- --------- -----
Borrowings
Advances from the FHLBB 871,729 5,347 1.21 % 861,435 4,919 1.14 %
Subordinated debentures and notes 82,976 2,514 6.06 % 82,806 2,498 6.03 %
Other borrowed funds 40,464 50 0.25 % 36,167 58 0.32 %
------ --- ------ ---
Total borrowings 995,169 7,911 1.57 % 980,408 7,475 1.52 %
------- ----- ------- -----
Total interest-bearing liabilities 4,589,099 17,674 0.77 % 4,354,118 16,075 0.74 %
--------- ------ --------- ------
Non-interest-bearing liabilities:
Demand checking accounts 812,374 739,526
Other non-interest-bearing liabilities 76,099 56,775
------ ------
Total liabilities 5,477,572 5,150,419
Brookline Bancorp, Inc. stockholders' equity 681,548 651,971
Noncontrolling interest in subsidiary 6,038 4,731
----- -----
Total liabilities and equity $6,165,158 $5,807,121
========== ==========
Net interest income (tax-equivalent basis) /Interest-rate spread
(4) 100,123 3.26 % 96,114 3.35 %
===== =====
Less adjustment of tax-exempt income 663 414
--- ---
Net interest income $99,460 $95,700
======= =======
Net interest margin (5) 3.44 % 3.53 %
===== =====
(1) Tax-exempt income on
debt securities, equity
securities and revenue bonds
included in commercial real
estate loans is included on
a tax-equivalent basis.
(2) Average balances include
unrealized gains (losses) on
investment securities.
Dividend payments may not be
consistent and average yield
on equity securities may
vary from month to month.
(3) Loans on nonaccrual
status are included in the
average balances.
(4) Interest rate spread
represents the difference
between the yield on
interest-earning assets and
the cost of interest-
bearing liabilities.
(5) Net interest margin
represents net interest
income (tax-equivalent
basis) divided by average
interest-earning assets.
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Non-GAAP Financial Information (Unaudited)
At and for the Three Months Ended
---------------------------------
June 30, 2016 March 31, 2016 December 31, 2015 September 30, 2015 June 30, 2015
------------- -------------- ----------------- ------------------ -------------
(Dollars in Thousands)
Net income, as reported $12,654 $12,812 $13,327 $12,888 $11,865
======= ======= ======= ======= =======
Average total assets $6,237,463 $6,092,858 $5,957,191 $5,790,469 $5,762,620
Less: Average goodwill and average identified intangible assets, net 147,619 148,248 148,930 149,669 150,385
Average tangible assets $6,089,844 $5,944,610 $5,808,261 $5,640,800 $5,612,235
========== ========== ========== ========== ==========
Return on average tangible assets (annualized) 0.83 % 0.86 % 0.92 % 0.91 % 0.85 %
Average total stockholders' equity $685,996 $677,101 $667,471 $659,761 $655,223
Less: Average goodwill and average identified intangible assets, net 147,619 148,248 148,930 149,669 150,385
Average tangible stockholders' equity $538,377 $528,853 $518,541 $510,092 $504,838
======== ======== ======== ======== ========
Return on average tangible stockholders' equity (annualized) 9.40 % 9.69 % 10.28 % 10.11 % 9.40 %
Brookline Bancorp, Inc. stockholders' equity $689,656 $680,417 $667,485 $663,468 $653,516
Less:
Goodwill 137,890 137,890 137,890 137,890 137,890
Identified intangible assets, net 9,377 9,998 10,633 11,357 12,082
----- ----- ------ ------ ------
Tangible stockholders' equity $542,389 $532,529 $518,962 $514,221 $503,544
======== ======== ======== ======== ========
Total assets $6,296,502 $6,181,030 $6,042,338 $5,839,529 $5,782,934
Less:
Goodwill 137,890 137,890 137,890 137,890 137,890
Identified intangible assets, net 9,377 9,998 10,633 11,357 12,082
----- ----- ------ ------ ------
Tangible assets $6,149,235 $6,033,142 $5,893,815 $5,690,282 $5,632,962
========== ========== ========== ========== ==========
Tangible stockholders' equity to tangible assets 8.82 % 8.83 % 8.81 % 9.04 % 8.94 %
Tangible stockholders' equity $542,389 $532,529 $518,962 $514,221 $503,544
======== ======== ======== ======== ========
Number of common shares issued 75,744,445 75,744,445 75,744,445 75,744,445 75,744,445
Less:
Treasury shares 4,862,193 4,861,554 4,861,554 4,861,085 5,048,525
Unallocated ESOP shares 194,880 203,973 213,066 222,645 232,224
Unvested restricted shares 484,066 486,035 486,035 486,999 406,566
------- ------- ------- ------- -------
Number of common shares outstanding 70,203,306 70,192,883 70,183,790 70,173,716 70,057,130
========== ========== ========== ========== ==========
Tangible book value per common share $7.73 $7.59 $7.39 $7.33 $7.19
Allowance for loan and lease losses $57,258 $58,606 $56,739 $56,472 $56,398
Less:
Allowance for acquired loans and leases losses 2,178 1,938 1,752 2,048 2,655
----- ----- ----- ----- -----
Allowance for originated loan and lease losses $55,080 $56,668 $54,987 $54,424 $53,743
======= ======= ======= ======= =======
Total loans and leases $5,259,038 $5,130,445 $4,995,540 $4,829,152 $4,729,581
Less:
Total acquired loans and leases 371,986 395,782 422,652 457,922 509,028
------- ------- ------- ------- -------
Total originated loans and leases $4,887,052 $4,734,663 $4,572,888 $4,371,230 $4,220,553
========== ========== ========== ========== ==========
Allowance for loan and lease 1.13 % 1.20 % 1.20 % 1.25 % 1.27 %
losses related to originated
loans and leases as a percentage of originated
loans and leases
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SOURCE Brookline Bancorp, Inc.
