BOSTON--(BUSINESS WIRE)--Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced net income of $10.4 million, or $0.15 per basic share and diluted share, for the first quarter of 2014, compared to $8.8 million, or $0.13 per basic and diluted share, for the first quarter of 2013, and $7.7 million, or $0.11 per basic and diluted share, for the fourth quarter of 2013.
The Company’s 2014 first quarter results included $2.1 million in additional accretion related to a reforecast of certain acquired loans, the sale of a building resulting in a gain of $1.6 million, offset by charges of $1.3 million related to the consolidation of an operations center, discontinuance of two branch locations and CFO recruitment. Excluding these items, net income would have been $0.13 per basic and diluted share.
Paul Perrault, President and Chief Executive Officer of Brookline Bancorp, Inc., stated: "We continue to experience the rewards of the strong foundation that we built in order to be the preferred financial institution in our market area. Our commercial bankers produced strong loan growth in the quarter and prospects remain encouraging for the quarters ahead. Recently, Carl M. Carlson joined Brookline Bancorp, Inc. as its Chief Financial Officer and Treasurer. Carl is an accomplished banker and is settling in well with the management team.”
BALANCE SHEET
Total assets increased $93.7 million during the first quarter of 2014 to $5.4 billion at March 31, 2014, and increased $308.4 million from $5.1 billion at March 31, 2013. The growth in total assets during the first quarter of 2014 was primarily driven by loans and leases, which increased $99.5 million to $4.5 billion at March 31, 2014, representing 9.1 percent growth on an annualized basis. At March 31, 2014, the commercial real estate and commercial loan and lease portfolios totaled $3.3 billion, or 73.6 percent of total loans and leases, as compared to $3.2 billion, or 72.6 percent at December 31, 2013, and $2.9 billion, or 69.3 percent at March 31, 2013. Strong loan growth continued in our total commercial loan and lease portfolio, which increased $45.8 million during the first quarter of 2014, or 19.0 percent on an annualized basis. This growth offsets the decrease of $26.6 million in the indirect automobile loan portfolio during the same period.
Cash, cash equivalents, and investment securities increased $15.1 million quarter-to-quarter and $21.3 million year-to-year to $600.5 million, or 11.1 percent of total assets at March 31, 2014, as compared to $585.4 million, or 11.0 percent of total assets at December 31, 2013, and $579.2 million, or 11.3 percent of total assets at March 31, 2013. Deposits of $3.8 billion at March 31, 2014 were up $12.6 million from December 31, 2013 and up $221.6 million from March 31, 2013. Core deposits, which consist of demand checking, NOW, savings, and money market accounts, increased at a 4.1 percent annualized rate in the first quarter of 2014, raising the core deposit ratio to 76.1 percent at March 31, 2014 from 75.6 percent at December 31, 2013. Total borrowings at March 31, 2014 were $892.0 million, an increase of $79.5 million as compared to December 31, 2013, and $71.6 million as compared to March 31, 2013.
The ratio of stockholders’ equity to total assets was 11.46 percent at March 31, 2014, as compared to 11.53 percent at December 31, 2013. The ratio of tangible stockholders’ equity to tangible assets was 8.87 percent at March 31, 2014, as compared to 8.88 percent at December 31, 2013.
NET INTEREST INCOME
Net interest income for the first quarter of 2014 increased $4.0 million to $47.7 million from $43.7 million for the first quarter of 2013, largely as a result of a $0.6 million increase in interest income from investments, a $1.4 million increase in interest income from commercial real estate loans, a $2.8 million increase in accretion related to acquired loans, deposits and borrowed funds, a $1.7 million decrease in interest income due to the runoff in indirect auto loans and a $1.0 million decrease in interest expense on deposits and borrowings.
Net interest margin increased to 3.82 percent for the three months ended March 31, 2014 from 3.70 percent for the three months ended March 31, 2013.
PROVISION FOR LOAN LOSSES
The Company recorded a provision for loan losses of $2.4 million for the quarter ended March 31, 2014 as total loans grew, compared to $1.8 million a year earlier.
Net charge-offs were $0.7 million in the first quarter of 2014 compared to $0.4 million in the same period a year ago. The ratio of net charge-offs to average loans on an annualized basis was 0.06 percent compared to 0.04 percent a year ago.
The allowance for loan losses represented 1.13 percent of total loans at March 31, 2014 compared to 1.02 percent a year ago. The allowance for loan losses related to originated loans and leases as a percentage of originated loans and leases was 1.33 percent compared to 1.34 percent a year ago.
NON-INTEREST INCOME
Non-interest income for the quarter ended March 31, 2014 increased $1.8 million to $5.1 million from $3.3 million for the quarter ended March 31, 2013. Several factors contributed to the year-to-year increase, including a net $1.5 million gain on the sale of a building and a $0.3 million increase in gain on sales of loans held-for-sale, offset by a $0.2 million increase on the losses from investment in affordable housing projects, and a $0.1 million decrease in deposit fees.
NON-INTEREST EXPENSE
Non-interest expense for the quarter ended March 31, 2014 increased $2.8 million to $33.6 million from $30.8 million for the quarter ended March 31, 2013. The year-over-year increase in non-interest expense included an increase of $1.7 million in compensation and employee benefit expense driven primarily by additional staffing for certain initiatives including the opening of the Waltham, MA branch of Brookline Bank and to support the growth in Equipment Finance. Additionally, occupancy expense increased $1.3 million due, in part, to the recognition of future lease obligations associated with the consolidation of our operations center and two discontinued branch properties. These increases were offset by a decrease of $0.4 million in other expenses.
RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY
The return on average assets increased during the first quarter of 2014 to 0.78 percent at March 31, 2014 from 0.70 percent for the first quarter of 2013.
The return on average tangible stockholders’ equity increased to 8.92 percent for the first quarter of 2014 from 7.70 percent for the quarter ended March 31, 2013.
ASSET QUALITY
Nonperforming loans and leases increased $1.6 million to $18.1 million at March 31, 2014 from $16.5 million at December 31, 2013. The ratio of nonperforming loans and leases to total loans and leases increased to 0.41 percent at March 31, 2014 from 0.38 percent at December 31, 2013. Nonperforming assets also increased $1.4 million to $19.4 million or 0.36 percent of total assets at March 31, 2014, from $18.1 million, or 0.34 percent of total assets, at December 31, 2013.
DIVIDEND DECLARED
The Company’s Board of Directors approved, for the 48th consecutive quarter, a dividend of $0.085 per share. The dividend will be paid on May 23, 2014 to shareholders of record on May 9, 2014.
CONFERENCE CALL
The Company will conduct a conference call/webcast at 1:30 PM Eastern Time on Thursday, April 24, 2014 to discuss the results for the quarter, business highlights and outlook. The call can be accessed by dialing 888-317-6016 (United States) or 412-317-6016 (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 10042928. 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 $5.4 billion in assets and branch locations throughout 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. 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 FASB in its Accounting Standards Codification and through the rules and interpretive releases of the SEC under the authority of federal securities laws. Certain amounts previously reported have been reclassified to conform to the current period's presentation.
NON-GAAP FINANCIAL MEASURES
The Company uses certain non-GAAP financial measures, such as 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. 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.
BROOKLINE BANCORP, INC. AND SUBSIDIARIES | ||||||||
Selected Financial Highlights (Unaudited) | ||||||||
At and for the Three Months Ended March 31, |
||||||||
2014 | 2013 | |||||||
(Dollars In Thousands Except Share Data) | ||||||||
Earnings Data: | ||||||||
Net interest income | $ | 47,734 | $ | 43,669 | ||||
Provision for credit losses | 2,443 | 1,855 | ||||||
Non-interest income | 5,124 | 3,327 | ||||||
Non-interest expense | 33,576 | 30,772 | ||||||
Income before income taxes | 16,839 | 14,369 | ||||||
Net income attributable to Brookline Bancorp, Inc. | 10,422 | 8,813 | ||||||
Performance Ratios: | ||||||||
Net interest margin (1) | 3.82 | % | 3.70 | % | ||||
Interest-rate spread (1) | 3.67 | % | 3.54 | % | ||||
Return on average assets | 0.78 | % | 0.70 | % | ||||
Return on average stockholders' equity | 6.70 | % | 5.72 | % | ||||
Return on average tangible stockholders' equity (non-GAAP) | 8.92 | % | 7.70 | % | ||||
Efficiency ratio | 63.52 | % | 65.48 | % | ||||
Per Common Share Data: | ||||||||
Net income — Basic | $ | 0.15 | $ | 0.13 | ||||
Net income — Diluted | 0.15 | 0.13 | ||||||
Cash dividends declared | 0.085 | 0.085 | ||||||
Book value per share (end of period) | 8.88 | 8.80 | ||||||
Tangible book value per share (end of period) (non-GAAP) | 6.68 | 6.53 | ||||||
Stock price (end of period) | 9.42 | 9.14 | ||||||
(1) Calculated on a fully tax-equivalent basis. | ||||||||
At and for the Three Months Ended | ||||||||||||||||||||
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||
Balance Sheet: | ||||||||||||||||||||
Total assets | $ | 5,418,785 | $ | 5,325,106 | $ | 5,236,229 | $ | 5,150,480 | $ | 5,110,378 | ||||||||||
Total loans and leases | 4,461,997 | 4,362,465 | 4,299,477 | 4,205,015 | 4,173,985 | |||||||||||||||
Total deposits | 3,847,650 | 3,835,006 | 3,737,978 | 3,656,981 | 3,626,033 | |||||||||||||||
Brookline Bancorp, Inc. stockholders’ equity | 620,799 | 613,867 | 614,811 | 611,284 | 614,039 | |||||||||||||||
Asset Quality: | ||||||||||||||||||||
Nonperforming assets | $ | 19,430 | $ | 18,079 | $ | 16,738 | $ | 18,986 | $ | 22,941 | ||||||||||
Nonperforming assets as a percentage of total assets | 0.36 | % | 0.34 | % | 0.32 | % | 0.37 | % | 0.45 | % | ||||||||||
Allowance for loan and lease losses | $ | 50,224 | $ | 48,473 | $ | 46,390 | $ | 44,281 | $ | 42,532 | ||||||||||
Allowance for loan and lease losses as a percentage of total loans and leases | 1.13 | % | 1.11 | % | 1.08 | % | 1.05 | % | 1.02 | % | ||||||||||
Net loan and lease charge-offs | $ | 666 | $ | 1,676 | $ | 621 | $ | 639 | $ | 419 | ||||||||||
Net loan and lease charge-offs as a percentage of average loans and leases (annualized) | 0.06 | % | 0.16 | % | 0.06 | % | 0.06 | % | 0.04 | % | ||||||||||
Capital Ratios: | ||||||||||||||||||||
Stockholders’ equity to total assets | 11.46 | % | 11.53 | % | 11.74 | % | 11.87 | % | 12.02 | % | ||||||||||
Tangible stockholders’ equity to tangible assets (non-GAAP) | 8.87 | % | 8.88 | % | 9.03 | % | 9.10 | % | 9.20 | % | ||||||||||
BROOKLINE BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||||||
Consolidated Balance Sheets (Unaudited) | |||||||||||||||||||
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
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ASSETS | (In Thousands Except Share Data) | ||||||||||||||||||
Cash and due from banks | $ | 50,000 | $ | 37,148 | $ | 37,220 | 33,008 | $ | 39,330 | ||||||||||
Short-term investments | 22,936 | 55,357 | 58,195 | 66,787 | 52,766 | ||||||||||||||
Total cash and cash equivalents | 72,936 | 92,505 | 95,415 | 99,795 | 92,096 | ||||||||||||||
Investment securities available-for-sale | 527,073 | 492,428 | 480,402 | 479,177 | 486,625 | ||||||||||||||
Investment securities held-to-maturity | 500 | 500 | 500 | 500 | 500 | ||||||||||||||
Total investment securities | 527,573 | 492,928 | 480,902 | 479,677 | 487,125 | ||||||||||||||
Loans and leases held-for-sale | 177 | 13,372 | 200 | 4,221 | 839 | ||||||||||||||
Loans and leases: | |||||||||||||||||||
Commercial real estate loans: | |||||||||||||||||||
Commercial real estate mortgage | 1,505,674 | 1,461,985 | 1,400,769 | 1,349,051 | 1,299,496 | ||||||||||||||
Multi-family mortgage | 632,122 | 627,933 | 599,601 | 594,939 | 585,669 | ||||||||||||||
Construction | 136,679 | 113,705 | 118,090 | 112,684 | 115,896 | ||||||||||||||
Total commercial real estate loans | 2,274,475 | 2,203,623 | 2,118,460 | 2,056,674 | 2,001,061 | ||||||||||||||
Commercial loans and leases: | |||||||||||||||||||
Commercial | 437,957 | 407,792 | 409,376 | 376,507 | 399,781 | ||||||||||||||
Equipment financing | 529,670 | 513,024 | 513,345 | 476,724 | 448,701 | ||||||||||||||
Condominium association | 43,810 | 44,794 | 43,205 | 41,859 | 43,043 | ||||||||||||||
Total commercial loans and leases | 1,011,437 | 965,610 | 965,926 | 895,090 | 891,525 | ||||||||||||||
Indirect automobile loans | 373,965 | 400,531 | 440,949 | 479,782 | 510,954 | ||||||||||||||
Consumer loans: | |||||||||||||||||||
Residential mortgage | 530,347 | 528,185 | 511,835 | 507,099 | 509,155 | ||||||||||||||
Home equity | 261,836 | 257,461 | 254,888 | 257,839 | 254,048 | ||||||||||||||
Other consumer | 9,937 | 7,055 | 7,419 | 8,531 | 7,242 | ||||||||||||||
Total consumer loans | 802,120 | 792,701 | 774,142 | 773,469 | 770,445 | ||||||||||||||
Total loans and leases | 4,461,997 | 4,362,465 | 4,299,477 | 4,205,015 | 4,173,985 | ||||||||||||||
Allowance for loan and lease losses | (50,224 | ) | (48,473 | ) | (46,390 | ) | (44,281 | ) | (42,532 | ) | |||||||||
Net loans and leases | 4,411,773 | 4,313,992 | 4,253,087 | 4,160,734 | 4,131,453 | ||||||||||||||
Restricted equity securities | 66,559 | 66,559 | 66,627 | 66,627 | 66,553 | ||||||||||||||
Premises and equipment, net of accumulated depreciation | 81,396 | 80,505 | 79,504 | 76,867 | 74,223 | ||||||||||||||
Deferred tax asset | 29,319 | 31,710 | 34,322 | 32,739 | 29,123 | ||||||||||||||
Goodwill | 137,890 | 137,890 | 137,890 | 137,890 | 137,890 | ||||||||||||||
Identified intangible assets, net of accumulated amortization | 16,026 | 16,887 | 18,015 | 19,168 | 20,345 | ||||||||||||||
Other real estate owned and repossessed assets | 1,290 | 1,578 | 1,319 | 1,493 | 1,248 | ||||||||||||||
Other assets | 73,846 | 77,180 | 68,948 | 71,269 | 69,483 | ||||||||||||||
Total assets | $ | 5,418,785 | $ | 5,325,106 | $ | 5,236,229 | 5,150,480 | $ | 5,110,378 | ||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||||||
Deposits: | |||||||||||||||||||
Non-interest-bearing deposits: | |||||||||||||||||||
Demand checking accounts | $ | 682,383 | $ | 707,023 | $ | 667,181 | 644,507 | $ | 623,315 | ||||||||||
Interest-bearing deposits: | |||||||||||||||||||
NOW accounts | 212,877 | 210,602 | 204,164 | 196,778 | 194,313 | ||||||||||||||
Savings accounts | 517,327 | 494,734 | 512,393 | 503,170 | 509,967 | ||||||||||||||
Money market accounts | 1,517,290 | 1,487,979 | 1,403,881 | 1,340,024 | 1,303,231 | ||||||||||||||
Certificate of deposit accounts | 917,773 | 934,668 | 950,359 | 972,502 | 995,207 | ||||||||||||||
Total interest-bearing deposits | 3,165,267 | 3,127,983 | 3,070,797 | 3,012,474 | 3,002,718 | ||||||||||||||
Total deposits | 3,847,650 | 3,835,006 | 3,737,978 | 3,656,981 | 3,626,033 | ||||||||||||||
Borrowed funds: | |||||||||||||||||||
Advances from the FHLBB | 855,915 | 768,773 | 784,740 | 785,565 | 759,675 | ||||||||||||||
Other borrowed funds | 36,101 | 43,782 | 44,062 | 44,501 | 60,772 | ||||||||||||||
Total borrowed funds | 892,016 | 812,555 | 828,802 | 830,066 | 820,447 | ||||||||||||||
Mortgagors’ escrow accounts | 8,696 | 7,889 | 8,008 | 7,465 | 7,823 | ||||||||||||||
Accrued expenses and other liabilities | 45,703 | 51,485 | 42,820 | 41,097 | 38,825 | ||||||||||||||
Total liabilities | 4,794,065 | 4,706,935 | 4,617,608 | 4,535,609 | 4,493,128 | ||||||||||||||
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 | 617,978 | 617,538 | 616,968 | 619,033 | 618,708 | ||||||||||||||
Retained earnings, partially restricted | 69,361 | 64,903 | 63,210 | 59,747 | 56,211 | ||||||||||||||
Accumulated other comprehensive (loss) income | (5,936 | ) | (7,915 | ) | (4,900 | ) | (4,441 | ) | 2,233 | ||||||||||
Treasury stock, at cost; | |||||||||||||||||||
5,171,985 shares, 5,171,985 shares, 5,154,327 shares, 5,373,733 shares, and 5,373,733 shares, respectively | (59,826 | ) | (59,826 | ) | (59,576 | ) | (62,107 | ) | (62,107 | ) | |||||||||
Unallocated common stock held by ESOP; | |||||||||||||||||||
281,595 shares, 291,666 shares, 302,229 shares, 312,792 shares, and 323,355 shares, respectively | (1,535 | ) | (1,590 | ) | (1,648 | ) | (1,705 | ) | (1,763 | ) | |||||||||
Total Brookline Bancorp, Inc. stockholders’ equity | 620,799 | 613,867 | 614,811 | 611,284 | 614,039 | ||||||||||||||
Noncontrolling interest in subsidiary | 3,921 | 4,304 | 3,810 | 3,587 | 3,211 | ||||||||||||||
Total stockholders' equity | 624,720 | 618,171 | 618,621 | 614,871 | 617,250 | ||||||||||||||
Total liabilities and stockholders' equity | $ | 5,418,785 | $ | 5,325,106 | $ | 5,236,229 | 5,150,480 | $ | 5,110,378 | ||||||||||
BROOKLINE BANCORP, INC. AND SUBSIDIARIES | ||||||||
Consolidated Statements of Income (Unaudited) | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
(In Thousands Except Share Data) |
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Interest and dividend income: | ||||||||
Loans and leases | $ | 51,942 | $ | 49,419 | ||||
Debt securities | 2,259 | 1,852 | ||||||
Marketable and restricted equity securities | 449 | 310 | ||||||
Short-term investments | 44 | 31 | ||||||
Total interest and dividend income | 54,694 | 51,612 | ||||||
Interest expense: | ||||||||
Deposits | 4,291 | 4,834 | ||||||
Borrowed funds | 2,669 | 3,109 | ||||||
Total interest expense | 6,960 | 7,943 | ||||||
Net interest income | 47,734 | 43,669 | ||||||
Provision for credit losses | 2,443 | 1,855 | ||||||
Net interest income after provision for credit losses | 45,291 | 41,814 | ||||||
Non-interest income: | ||||||||
Deposit Fees | 1,959 | 2,066 | ||||||
Loan Fees | 436 | 421 | ||||||
Loss from investments in affordable housing projects | (504 | ) | (312 | ) | ||||
Gain on sales of loans and leases held-for-sale | 602 | 298 | ||||||
Gain on sales/disposals of fixed assets, net | 1,510 | — | ||||||
Other | 1,121 | 854 | ||||||
Total non-interest income | 5,124 | 3,327 | ||||||
Non-interest expense: | ||||||||
Compensation and employee benefits | 18,032 | 16,298 | ||||||
Occupancy | 4,405 | 3,083 | ||||||
Equipment and data processing | 4,377 | 4,100 | ||||||
Professional services | 1,727 | 1,501 | ||||||
FDIC insurance | 860 | 934 | ||||||
Advertising and marketing | 665 | 670 | ||||||
Amortization of identified intangible assets | 861 | 1,165 | ||||||
Other | 2,649 | 3,021 | ||||||
Total non-interest expense | 33,576 | 30,772 | ||||||
Income before provision for income taxes | 16,839 | 14,369 | ||||||
Provision for income taxes | 5,995 | 5,129 | ||||||
Net income before noncontrolling interest in subsidiary | 10,844 | 9,240 | ||||||
Less net income attributable to noncontrolling interest in subsidiary | 422 | 427 | ||||||
Net income attributable to Brookline Bancorp, Inc. | $ | 10,422 | $ | 8,813 | ||||
Earnings per common share: | ||||||||
Basic | $ | 0.15 | $ | 0.13 | ||||
Diluted | $ | 0.15 | $ | 0.13 | ||||
Weighted average common shares outstanding during the period: | ||||||||
Basic | 69,875,473 | 69,762,784 | ||||||
Diluted | 69,983,999 | 69,830,630 | ||||||
Dividends declared per common share | $ | 0.085 | $ | 0.085 | ||||
BROOKLINE BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||
Asset Quality Analysis (Unaudited) | ||||||||||||||||||||
At and for the Three Months Ended | ||||||||||||||||||||
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
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(Dollars in Thousands) | ||||||||||||||||||||
NONPERFORMING ASSETS: | ||||||||||||||||||||
Loans and leases accounted for on a nonaccrual basis: | ||||||||||||||||||||
Commercial real estate mortgage | $ | 1,814 | $ | 1,098 | $ | 1,137 | $ | 2,682 | $ | 3,970 | ||||||||||
Multi-family mortgage | — | — | 664 | 1,593 | 4,132 | |||||||||||||||
Construction | — | — | — | — | — | |||||||||||||||
Total commercial real estate loans | 1,814 | 1,098 | 1,801 | 4,275 | 8,102 | |||||||||||||||
Commercial | 6,350 | 6,148 | 4,747 | 4,680 | 5,035 | |||||||||||||||
Equipment financing | 4,633 | 4,115 | 4,116 | 4,014 | 3,595 | |||||||||||||||
Condominium association | — | 1 | 3 | 4 | 6 | |||||||||||||||
Total commercial loans and leases | 10,983 | 10,264 | 8,866 | 8,698 | 8,636 | |||||||||||||||
Indirect automobile loans | 378 | 259 | 195 | 156 | 62 | |||||||||||||||
Residential mortgage | 3,138 | 2,875 | 2,738 | 2,786 | 3,724 | |||||||||||||||
Home equity | 1,799 | 1,987 | 1,801 | 1,557 | 1,150 | |||||||||||||||
Other consumer | 28 | 18 | 18 | 21 | 19 | |||||||||||||||
Total consumer loans | 4,965 | 4,880 | 4,557 | 4,364 | 4,893 | |||||||||||||||
Total nonaccrual loans and leases | 18,140 | 16,501 | 15,419 | 17,493 | 21,693 | |||||||||||||||
Other real estate owned | 855 | 577 | 726 | 1,002 | 943 | |||||||||||||||
Other repossessed assets | 435 | 1,001 | 593 | 491 | 305 | |||||||||||||||
Total nonperforming assets | $ | 19,430 | $ | 18,079 | $ | 16,738 | $ | 18,986 | $ | 22,941 | ||||||||||
Troubled debt restructurings on accrual | 11,532 | 12,759 | 12,158 | 9,631 | 9,816 | |||||||||||||||
Troubled debt restructurings on nonaccrual | 6,764 | 5,589 | 5,905 | 6,919 | 7,514 | |||||||||||||||
Total troubled debt restructurings | $ | 18,296 | $ | 18,348 | $ | 18,063 | $ | 16,550 | $ | 17,330 | ||||||||||
Nonperforming loans and leases as a percentage of total loans and leases | 0.41 | % | 0.38 | % | 0.36 | % | 0.42 | % | 0.52 | % | ||||||||||
Nonperforming assets as a percentage of total assets | 0.36 | % | 0.34 | % | 0.32 | % | 0.37 | % | 0.45 | % | ||||||||||
PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES: | ||||||||||||||||||||
Allowance for loan and lease losses at beginning of period | $ | 48,473 | $ | 46,390 | $ | 44,281 | $ | 42,532 | $ | 41,152 | ||||||||||
Charge-offs | (1,050 | ) | (2,193 | ) | (903 | ) | (1,028 | ) | (661 | ) | ||||||||||
Recoveries | 384 | 517 | 282 | 389 | 242 | |||||||||||||||
Net charge-offs | (666 | ) | (1,676 | ) | (621 | ) | (639 | ) | (419 | ) | ||||||||||
Provision for loan and lease losses | 2,417 | 3,759 | 2,730 | 2,388 | 1,799 | |||||||||||||||
Allowance for loan and lease losses at end of period | $ | 50,224 | $ | 48,473 | $ | 46,390 | $ | 44,281 | $ | 42,532 | ||||||||||
Allowance for loan and lease losses as a percentage of total loans and leases | 1.13 | % | 1.11 | % | 1.08 | % | 1.05 | % | 1.02 | % | ||||||||||
Allowance for loan and lease losses related to originated loans and leases as a percentage of originated loans and leases | 1.33 | % | 1.32 | % | 1.31 | % | 1.34 | % | 1.34 | % | ||||||||||
NET CHARGE-OFFS: | ||||||||||||||||||||
Commercial real estate loans | $ | — | $ | (9 | ) | $ | 7 | $ | 81 | $ | (4 | ) | ||||||||
Commercial loans and leases | 300 | 803 | 157 | 295 | 166 | |||||||||||||||
Indirect automobile loans | 185 | 419 | 396 | 170 | 231 | |||||||||||||||
Consumer loans | 181 | 463 | 61 | 93 | 26 | |||||||||||||||
Total net charge-offs | $ | 666 | $ | 1,676 | $ | 621 | $ | 639 | $ | 419 | ||||||||||
Net loan and lease charge-offs as a percentage of average loans and leases (annualized) | 0.06 | % | 0.16 | % | 0.06 | % | 0.06 | % | 0.04 | % | ||||||||||
BROOKLINE BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||
Average Yields / Costs (Unaudited) | |||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||
March 31, 2014 | December 31, 2013 | March 31, 2013 | |||||||||||||||||||||||||||||||
Average |
Interest (1) |
Average |
Average |
Interest (1) |
Average |
Average |
Interest (1) |
Average |
|||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||||||||||||
Investments: | |||||||||||||||||||||||||||||||||
Debt securities (2) | 502,598 | 2,263 | 1.80 | % | 474,968 | 2,141 | 1.80 | % | 471,509 | 1,861 | 1.58 | % | |||||||||||||||||||||
Marketable and restricted equity securities (2) | 66,954 | 497 | 2.99 | % | 66,990 | 350 | 2.08 | % | 68,550 | 357 | 2.10 | % | |||||||||||||||||||||
Short-term investments | $ | 45,834 | $ | 44 | 0.39 | % | $ | 72,304 | $ | 39 | 0.21 | % | $ | 57,695 | $ | 29 | 0.20 | % | |||||||||||||||
Total investments | 615,386 | 2,804 | 1.83 | % | 614,262 | 2,530 | 1.65 | % | 597,754 | 2,247 | 1.48 | % | |||||||||||||||||||||
Loans and Leases: | |||||||||||||||||||||||||||||||||
Commercial real estate loans (3) | 2,228,495 | 25,702 | 4.61 | % | 2,165,330 | 24,816 | 4.54 | % | 1,988,501 | 24,315 | 4.89 | % | |||||||||||||||||||||
Commercial loans (3) | 476,455 | 4,693 | 3.94 | % | 461,656 | 4,783 | 4.07 | % | 426,573 | 4,569 | 4.28 | % | |||||||||||||||||||||
Equipment financing (3) | 522,288 | 11,037 | 8.50 | % | 494,173 | 7,897 | 6.36 | % | 436,983 | 8,001 | 7.38 | % | |||||||||||||||||||||
Indirect automobile loans (3) | 384,833 | 3,264 | 3.44 | % | 420,456 | 3,743 | 3.53 | % | 526,923 | 4,916 | 3.78 | % | |||||||||||||||||||||
Residential mortgage loans (3) | 532,593 | 4,809 | 3.65 | % | 516,155 | 4,794 | 3.70 | % | 508,303 | 5,165 | 4.10 | % | |||||||||||||||||||||
Other consumer loans (3) | 267,204 | 2,579 | 3.91 | % | 264,528 | 2,738 | 4.10 | % | 265,047 | 2,616 | 4.00 | % | |||||||||||||||||||||
Total loans and leases | 4,411,868 | 52,084 | 4.74 | % | 4,322,298 | 48,771 | 4.47 | % | 4,152,330 | 49,582 | 4.80 | % | |||||||||||||||||||||
Total interest-earning assets | 5,027,254 | 54,888 | 4.38 | % | 4,936,560 | 51,301 | 4.12 | % | 4,750,084 | 51,829 | 4.38 | % | |||||||||||||||||||||
Allowance for loan and lease losses | (49,087 | ) | (46,566 | ) | (41,487 | ) | |||||||||||||||||||||||||||
Non-interest-earning assets | 383,550 | 397,488 | 362,566 | ||||||||||||||||||||||||||||||
Total assets | $ | 5,361,717 | $ | 5,287,482 | $ | 5,071,163 | |||||||||||||||||||||||||||
Liabilities and Stockholders' Equity: | |||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||||||||||||
NOW accounts | $ | 206,226 | $ | 41 | 0.08 | % | $ | 207,768 | $ | 45 | 0.09 | % | $ | 190,320 | $ | 51 | 0.11 | % | |||||||||||||||
Savings accounts | 508,555 | 303 | 0.24 | % | 502,802 | 312 | 0.25 | % | 514,383 | 337 | 0.27 | % | |||||||||||||||||||||
Money market accounts | 1,505,992 | 1,959 | 0.53 | % | 1,471,402 | 2,086 | 0.56 | % | 1,294,593 | 2,061 | 0.65 | % | |||||||||||||||||||||
Certificates of deposit | 927,199 | 1,988 | 0.87 | % | 942,595 | 2,116 | 0.89 | % | 1,002,602 | 2,385 | 0.96 | % | |||||||||||||||||||||
Total interest-bearing deposits | 3,147,972 | 4,291 | 0.55 | % | 3,124,567 | 4,559 | 0.58 | % | 3,001,898 | 4,834 | 0.65 | % | |||||||||||||||||||||
Borrowings | |||||||||||||||||||||||||||||||||
Advances from the FHLBB | 803,729 | 2,531 | 1.28 | % | 752,854 | 2,583 | 1.36 | % | 753,270 | 2,955 | 1.59 | % | |||||||||||||||||||||
Other borrowed funds | 38,438 | 138 | 1.45 | % | 40,729 | 133 | 1.29 | % | 63,065 | 154 | 0.99 | % | |||||||||||||||||||||
Total borrowings | 842,167 | 2,669 | 1.29 | % | 793,583 | 2,716 | 1.36 | % | 816,335 | 3,109 | 1.54 | % | |||||||||||||||||||||
Total interest-bearing liabilities | 3,990,139 | 6,960 | 0.71 | % | 3,918,150 | 7,275 | 0.74 | % | 3,818,233 | 7,943 | 0.84 | % | |||||||||||||||||||||
Non-interest-bearing liabilities: | |||||||||||||||||||||||||||||||||
Demand checking accounts | 698,462 | 701,163 | 607,878 | ||||||||||||||||||||||||||||||
Other non-interest-bearing liabilities | 47,103 | 45,804 | 24,575 | ||||||||||||||||||||||||||||||
Total liabilities | 4,735,704 | 4,665,117 | 4,450,686 | ||||||||||||||||||||||||||||||
Brookline Bancorp, Inc. stockholders’ equity | 621,764 | 618,385 | 616,627 | ||||||||||||||||||||||||||||||
Noncontrolling interest in subsidiary | 4,249 | 3,980 | 3,850 | ||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 5,361,717 | $ | 5,287,482 | $ | 5,071,163 | |||||||||||||||||||||||||||
Net interest income (tax-equivalent basis) /Interest-rate spread (4) | 47,928 | 3.67 | % | 44,026 | 3.38 | % | 43,886 | 3.54 | % | ||||||||||||||||||||||||
Less adjustment of tax-exempt income | 194 | 252 | 217 | ||||||||||||||||||||||||||||||
Net interest income | $ | 47,734 | $ | 43,774 | $ | 43,669 | |||||||||||||||||||||||||||
Net interest margin (5) | 3.82 | % | 3.54 | % | 3.70 | % | |||||||||||||||||||||||||||
(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) | ||||||||||||||||||||
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||
Brookline Bancorp, Inc. stockholders’ equity | $ | 620,799 | $ | 613,867 | $ | 614,811 | $ | 611,284 | $ | 614,039 | ||||||||||
Less: | ||||||||||||||||||||
Goodwill | 137,890 | 137,890 | 137,890 | 137,890 | 137,890 | |||||||||||||||
Identified intangible assets | 16,026 | 16,887 | 18,015 | 19,168 | 20,345 | |||||||||||||||
Tangible stockholders' equity | $ | 466,883 | $ | 459,090 | $ | 458,906 | $ | 454,226 | $ | 455,804 | ||||||||||
Total assets | $ | 5,418,785 | $ | 5,325,106 | $ | 5,236,229 | $ | 5,150,480 | $ | 5,110,378 | ||||||||||
Less: | ||||||||||||||||||||
Goodwill | 137,890 | 137,890 | 137,890 | 137,890 | 137,890 | |||||||||||||||
Identified intangible assets | 16,026 | 16,887 | 18,015 | 19,168 | 20,345 | |||||||||||||||
Tangible assets | $ | 5,264,869 | $ | 5,170,329 | $ | 5,080,324 | $ | 4,993,422 | $ | 4,952,143 | ||||||||||
Tangible stockholders’ equity to tangible assets | 8.87 | % | 8.88 | % | 9.03 | % | 9.10 | % | 9.20 | % | ||||||||||
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||
Tangible stockholders' equity | $ | 466,883 | $ | 459,090 | $ | 458,906 | $ | 454,226 | $ | 455,804 | ||||||||||
Number of common shares issued | 75,744,445 | 75,744,445 | 75,744,445 | 75,744,445 | 75,744,445 | |||||||||||||||
Less: | ||||||||||||||||||||
Treasury shares | 5,171,985 | 5,171,985 | 5,154,327 | 5,373,733 | 5,373,733 | |||||||||||||||
Unallocated ESOP shares | 281,595 | 291,666 | 302,229 | 312,792 | 323,355 | |||||||||||||||
Unvested restricted stocks | 408,651 | 409,068 | 429,818 | 276,011 | 277,510 | |||||||||||||||
Number of common shares outstanding | 69,882,214 | 69,871,726 | 69,858,071 | 69,781,909 | 69,769,847 | |||||||||||||||
Tangible book value per common share | $ | 6.68 | $ | 6.57 | $ | 6.57 | $ | 6.51 | $ | 6.53 | ||||||||||
March 31, 2014 | December 31, 2013 | September 30, 2013 | June 30, 2013 | March 31, 2013 | ||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||
Allowance for loan and lease losses | $ | 50,224 | $ | 48,473 | $ | 46,390 | $ | 44,281 | $ | 42,532 | ||||||||||
Less: | ||||||||||||||||||||
Allowance for acquired loans and leases losses | 1,404 | 1,632 | 1,278 | 620 | — | |||||||||||||||
Allowance for originated loan and lease losses | $ | 48,820 | $ | 46,841 | $ | 45,112 | $ | 43,661 | $ | 42,532 | ||||||||||
Total loans and leases | $ | 4,461,997 | $ | 4,362,465 | $ | 4,299,477 | $ | 4,205,015 | $ | 4,173,985 | ||||||||||
Less: | ||||||||||||||||||||
Total acquired loans and leases | 779,747 | 815,412 | 865,708 | 938,815 | 997,988 | |||||||||||||||
Total originated loans and leases | $ | 3,682,250 | $ | 3,547,053 | $ | 3,433,769 | $ | 3,266,200 | $ | 3,175,997 | ||||||||||
Allowance for loan and lease losses related to originated loans and leases as a percentage of originated loans and leases | 1.33 | % | 1.32 | % | 1.31 | % | 1.34 | % | 1.34 | % |