Brookline Bancorp Announces Third Quarter Results

Mittwoch, 19.10.2016 23:05 von

PR Newswire

BOSTON, Oct. 19, 2016 /PRNewswire/ -- Brookline Bancorp, Inc. (NASDAQ: BRKL) (the "Company") today announced net income of $13.6 million, or $0.19 per basic and diluted share, for the third quarter of 2016, compared to $12.9 million, or $0.18 per basic and diluted share, for the third 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 and its employees continue to execute on our strategy of high performance for both our customers and our stockholders."

BALANCE SHEET

Total assets at September 30, 2016 increased $83.8 million to $6.4 billion from $6.3 billion at June 30, 2016, and increased $338.0 million from $6.04 billion at December 31, 2015. The increase in total assets of 5.3 percent on an annualized basis during the third quarter of 2016 was driven by increases in loans and leases. At September 30, 2016, total loans and leases were $5.3 billion, representing an increase of $73.3 million from June 30, 2016, and an increase of $336.8 million from December 31, 2015. During the third quarter of 2016, total loans and leases grew 5.6 percent on an annualized basis. Strong loan growth continued in the commercial real estate and commercial loan and lease portfolios, which increased $73.0 million during the third quarter of 2016, or 6.8 percent on an annualized basis.

Investment securities at September 30, 2016 decreased $1.2 million to $601.4 million, representing 9.4 percent of total assets, as compared to $602.6 million, or 9.6 percent of total assets, at June 30, 2016, and decreased approximately $5.6 million from $607.0 million, or 10.0 percent of total assets, at December 31, 2015.

Total deposits at September 30, 2016 increased $79.8 million to $4.6 billion from $4.5 billion at June 30, 2016 and increased $258.9 million from $4.3 billion at December 31, 2015. Core deposits, which consist of demand checking, NOW, savings, and money market accounts, increased $124.7 million from June 30, 2016 and increased $240.7 million from December 31, 2015. The average cost of interest bearing deposits increased slightly to 0.56 percent for the three months ended September 30, 2016 from 0.55 percent for the three months ended June 30, 2016.

Total borrowings at September 30, 2016 remained consistent with June 30, 2016 at $1.0 billion and increased $39.6 million from $983.0 million at December 31, 2015.

The ratio of stockholders' equity to total assets was 10.91 percent at September 30, 2016, as compared to 10.95 percent at June 30, 2016, and 11.05 percent at December 31, 2015, respectively. The ratio of tangible stockholders' equity to tangible assets was 8.82 percent at September 30, 2016 and June 30, 2016, respectively, both as compared to 8.81 percent at December 31, 2015.

NET INTEREST INCOME

Net interest income increased $2.1 million to $52.4 million during the third quarter of 2016 from the quarter ended June 30, 2016, largely as a result of loan growth, a $0.7 million increase in accretion related to acquired loans, and a $0.3 million increase in prepayment fees on loans. The net interest margin increased 4 basis points to 3.48 percent for the three months ended September 30, 2016.

PROVISION FOR CREDIT LOSSES

The Company recorded a provision for credit losses of $2.2 million for the quarter ended September 30, 2016, compared to $2.5 million for the quarter ended June 30, 2016.

Net charge-offs decreased $3.5 million to $0.5 million for the third quarter of 2016 from $4.0 million for the second quarter of 2016. As a result, the ratio of net charge-offs to average loans on an annualized basis decreased to 4 basis points for the third quarter of 2016 from 31 basis points for the second quarter of 2016.

The allowance for loan and lease losses represented 1.10 percent of total loans and leases at September 30, 2016, compared to 1.09 percent at June 30, 2016, and 1.14 percent at 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 1.15 percent at September 30, 2016, compared to 1.13 percent at June 30, 2016, and 1.20 percent at December 31, 2015.

NON-INTEREST INCOME

Non-interest income for the quarter ended September 30, 2016 decreased $0.1 million to $5.3 million from $5.4 million for the quarter ended June 30, 2016, primarily driven by a decrease of $0.4 million in loan level derivative income offset by an increase of $0.1 million in deposit fees and an increase of $0.2 million in gain on sales of loans and leases held-for-sale.

NON-INTEREST EXPENSE

Non-interest expense for the quarter ended September 30, 2016 increased $1.1 million to $33.4 million from $32.3 million for the quarter ended June 30, 2016. The Company's efficiency ratio was 57.89 percent at September 30, 2016, compared with 57.97 percent at June 30, 2016.

PROVISION FOR INCOME TAXES

The effective tax rate was 35.4 percent for the three months ended September 30, 2016 and was 35.6 percent for the nine months ended September 30, 2016.

RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

The return on average assets increased during the third quarter of 2016 to 0.86 percent at September 30, 2016 from 0.81 percent at June 30, 2016. The return on average tangible assets increased to 0.88 percent for the third quarter of 2016 from 0.83 percent for the second quarter of 2016. 

The return on average stockholders' equity increased during the third quarter of 2016 to 7.83 percent from 7.38 percent for the second quarter of 2016. The return on average tangible stockholders' equity increased to 9.94 percent for the third quarter of 2016 from 9.40 percent for the second quarter of 2016.

ASSET QUALITY

The ratio of nonperforming loans and leases to total loans and leases was 0.70 percent at September 30, 2016 as compared to 0.63 percent at June 30, 2016. Nonperforming loans and leases increased $4.5 million to $37.6 million at September 30, 2016 from $33.1 million at June 30, 2016. Nonperforming assets at September 30, 2016 increased $4.9 million to $38.7 million, or 0.61 percent of total assets, from $33.8 million, or 0.54 percent of total assets, at June 30, 2016. The increase in nonperforming loans and leases and nonperforming assets was primarily driven by certain taxi medallion loans that were placed on nonaccrual.

DIVIDEND DECLARED

The Company's Board of Directors approved a dividend of $0.09 per share for the quarter ended September 30, 2016. The dividend will be paid on November 18, 2016 to stockholders of record on November 4, 2016.

CONFERENCE CALL

The Company will conduct a conference call/webcast at 1:30 PM Eastern Daylight Time on Thursday, October 20, 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 10093594. 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 $6.4 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


September 30,
2016


June 30,
2016


March 31,
2016


December 31,
2015


September 30,
2015


(Dollars In Thousands Except per Share Data)

Earnings Data:










Net interest income

$           52,350


$          50,257


$        49,203


$           50,078


$           48,587

Provision for credit losses

2,215


2,545


2,378


1,520


1,755

Non-interest income

5,329


5,375


6,469


6,063


4,784

Non-interest expense

33,388


32,250


32,053


32,329


31,270

Income before provision for income taxes

22,076


20,837


21,241


22,292


20,346

Net income attributable to Brookline Bancorp, Inc.

13,617


12,654


12,812


13,327


12,888











Performance Ratios:










Net interest margin (1)

3.48 %


3.44 %


3.45 %


3.54 %


3.54 %

Interest-rate spread (1)

3.32 %


3.25 %


3.26 %


3.42 %


3.41 %

Return on average assets

0.86 %


0.81 %


0.84 %


0.89 %


0.89 %

Return on average tangible assets (non-GAAP)

0.88 %


0.83 %


0.86 %


0.92 %


0.91 %

Return on average stockholders' equity

7.83 %


7.38 %


7.57 %


7.99 %


7.81 %

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

9.94 %


9.40 %


9.69 %


10.28 %


10.11 %

Efficiency ratio (2)

57.89 %


57.97 %


57.57 %


57.59 %


58.59 %











Per Common Share Data:










Net income — Basic

$                0.19


$               0.18


$           0.18


$             0.19


$                      0.18

Net income — Diluted

0.19


0.18


0.18


0.19


0.18

Cash dividends declared

0.090


0.090


0.090


0.090


0.090

Book value per share (end of period)

9.90


9.82


9.69


9.51


9.45

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

7.81


7.73


7.59


7.39


7.33

Stock price (end of period)

12.19


11.03


11.01


11.50


10.14











Balance Sheet:










Total assets

$       6,380,312


$       6,296,502


$ 6,181,030


$   6,042,338


$             5,839,529

Total loans and leases

5,332,300


5,259,038


5,130,445


4,995,540


4,829,152

Total deposits

4,564,906


4,485,154


4,393,456


4,306,018


4,144,577

Brookline Bancorp, Inc. stockholders' equity

696,371


689,656


680,417


667,485


663,468











Asset Quality:










Nonperforming assets

$           38,704


$           33,809


$      32,470


$        20,676


$                 21,025

Nonperforming assets as a percentage of total assets

0.61 %


0.54 %


0.53 %


0.34 %


0.36 %

Allowance for loan and lease losses

$           58,892


$           57,258


$      58,606


$        56,739


$                 56,472

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

1.10 %


1.09 %


1.14 %


1.14 %


1.17 %

Net loan and lease charge-offs

$                520


$             4,018


$           400


$          1,389


$                   1,599

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

0.04 %


0.31 %


0.03 %


0.11 %


0.13 %











Capital Ratios:










Stockholders' equity to total assets

10.91 %


10.95 %


11.01 %


11.05 %


11.36 %

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

8.82 %


8.82 %


8.83 %


8.81 %


9.04 %











(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)


September 30,
2016


June 30,
2016


March 31,
2016


December 31,
2015


September 30,
2015

ASSETS

(In Thousands Except Share Data)

Cash and due from banks

$          32,196


$               22,677


$          31,127


$                      28,753


$          27,299

Short-term investments

32,351


47,265


42,795


46,736


19,745

Total cash and cash equivalents

64,547


69,942


73,922


75,489


47,044

Investment securities available-for-sale

524,295


532,967


536,182


513,201


526,764

Investment securities held-to-maturity

77,094


69,590


83,409


93,757


63,097

Total investment securities

601,389


602,557


619,591


606,958


589,861

Loans and leases held-for-sale

21,109


1,585


3,190


13,383


10,992

Loans and leases:










Commercial real estate loans:










  Commercial real estate mortgage

2,038,477


1,974,289


1,958,057


1,875,592


1,810,550

  Multi-family mortgage

703,743


721,771


682,317


658,480


614,560

  Construction

141,208


144,463


126,024


130,322


138,261

  Total commercial real estate loans

2,883,428


2,840,523


2,766,398


2,664,394


2,563,371

Commercial loans and leases:










  Commercial

652,316


628,281


616,290


592,531


580,711

  Equipment financing

764,647


750,503


721,621


721,890


684,331

  Condominium association

53,903


61,962


60,728


59,875


57,562

  Total commercial loans and leases

1,470,866


1,440,746


1,398,639


1,374,296


1,322,604

Indirect automobile loans

7,607


9,281


11,220


13,678


16,294

Consumer loans:










  Residential mortgage

617,065


624,423


617,501


616,449


606,063

  Home equity

340,954


333,527


318,859


314,553


308,371

  Other consumer

12,380


10,538


17,828


12,170


12,449

  Total consumer loans

970,399


968,488


954,188


943,172


926,883

  Total loans and leases

5,332,300


5,259,038


5,130,445


4,995,540


4,829,152

Allowance for loan and lease losses

(58,892)


(57,258)


(58,606)


(56,739)


(56,472)

Net loans and leases

5,273,408


5,201,780


5,071,839


4,938,801


4,772,680

Restricted equity securities

65,683


64,677


65,438


66,117


75,553

Premises and equipment, net of accumulated depreciation

75,462


76,131


77,128


78,156


77,472

Deferred tax asset

22,894


22,301


24,181


26,817


25,730

Goodwill

137,890


137,890


137,890


137,890


137,890

Identified intangible assets, net of accumulated amortization

8,754


9,377


9,998


10,633


11,357

Other real estate owned and repossessed assets

1,152


751


565


1,343


1,301

Other assets

108,024


109,511


97,288


86,751


89,649

Total assets

$          6,380,312


$          6,296,502


$          6,181,030


$                 6,042,338


$          5,839,529

LIABILITIES AND STOCKHOLDERS' EQUITY










Deposits:










Non-interest-bearing deposits:










  Demand checking accounts

$            889,278


$             852,869


$            793,195


$                    799,117


$             785,210

Interest-bearing deposits:










  NOW accounts

298,629


295,126


286,920


283,972


254,767

  Savings accounts

591,156


557,607


555,843


540,788


500,104

  Money market accounts

1,679,797


1,628,550


1,649,348


1,594,269


1,540,104

  Certificate of deposit accounts

1,106,046


1,151,002


1,108,150


1,087,872


1,064,392

  Total interest-bearing deposits

3,675,628


3,632,285


3,600,261


3,506,901


3,359,367

  Total deposits

4,564,906


4,485,154


4,393,456


4,306,018


4,144,577

Borrowed funds:










Advances from the FHLBB

900,971


904,685


905,953


861,866


848,913

Subordinated debentures and notes

83,043


83,021


82,978


82,936


82,873

Other borrowed funds

38,639


40,733


39,378


38,227


28,434

Total borrowed funds

1,022,653


1,028,439


1,028,309


983,029


960,220

Mortgagors' escrow accounts

8,166


7,419


7,905


7,516


7,996

Accrued expenses and other liabilities

81,670


79,541


64,566


72,289


57,996

Total liabilities

5,677,395


5,600,553


5,494,236


5,368,852


5,170,789

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

616,142


617,738


617,477


616,899


616,252

Retained earnings, partially restricted

129,740


122,469


116,151


109,675


102,684

Accumulated other comprehensive (loss) income

4,896


5,969


3,352


(2,476)


1,191

Treasury stock, at cost;










4,734,512 shares, 4,862,193 shares, 4,861,554 shares, 4,861,554 shares, and 4,861,085  shares, respectively

(54,151)


(56,215)


(56,208)


(56,208)


(56,202)

Unallocated common stock held by the Employee Stock Ownership Plan;










185,787 shares, 194,880 shares, 203,973 shares, 213,066 shares, and 222,645 shares, respectively

(1,013)


(1,062)


(1,112)


(1,162)


(1,214)

Total Brookline Bancorp, Inc. stockholders' equity

696,371


689,656


680,417


667,485


663,468

Noncontrolling interest in subsidiary

6,546


6,293


6,377


6,001


5,272

Total stockholders' equity

702,917


695,949


686,794


673,486


668,740

Total liabilities and stockholders' equity

$          6,380,312


$          6,296,502


$          6,181,030


$                 6,042,338


$               5,839,529

 

 

 

BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Consolidated Statements of Income (Unaudited)


Three Months Ended


September 30,
2016


June 30,
2016


March 31,
2016


December 31,
2015


September 30,
2015


(In Thousands Except Share Data)

Interest and dividend income:










Loans and leases

$                  57,858


$                  55,369


$               54,247


$                  54,814


$                      52,725

Debt securities

2,822


3,075


2,932


2,936


2,866

Marketable and restricted equity securities

804


729


680


668


1,079

Short-term investments

47


63


39


30


17

  Total interest and dividend income

61,531


59,236


57,898


58,448


56,687

Interest expense:










Deposits

5,112


5,018


4,745


4,554


4,326

Borrowed funds

4,069


3,961


3,950


3,816


3,774

  Total interest expense

9,181


8,979


8,695


8,370


8,100

Net interest income

52,350


50,257


49,203


50,078


48,587

Provision for credit losses

2,215


2,545


2,378


1,520


1,755

Net interest income after provision for credit losses

50,135


47,712


46,825


48,558


46,832

Non-interest income:










Deposit fees

2,289


2,216


2,145


2,208


2,261

Loan fees

330


287


330


364


205

Loan level derivative income, net

858


1,210


1,629


1,556


900

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

588


345


905


614


446

Other

1,264


1,317


1,460


1,321


972

  Total non-interest income

5,329


5,375


6,469


6,063


4,784

Non-interest expense:










Compensation and employee benefits

20,369


19,083


18,727


18,788


17,875

Occupancy

3,411


3,391


3,526


3,482


3,535

Equipment and data processing

3,826


3,898


3,714


3,537


3,600

Professional services

997


962


966


951


984

FDIC insurance

956


843


878


883


929

Advertising and marketing

844


853


861


903


878

Amortization of identified intangible assets

623


621


635


724


725

Other

2,362


2,599


2,746


3,061


2,744

  Total non-interest expense

33,388


32,250


32,053


32,329


31,270

Income before provision for income taxes

22,076


20,837


21,241


22,292


20,346

Provision for income taxes

7,804


7,465


7,599


8,237


6,897

Net income before noncontrolling interest in subsidiary

14,272


13,372


13,642


14,055


13,449

Less net income attributable to noncontrolling interest in subsidiary

655


718


830


728


561

Net income attributable to Brookline Bancorp, Inc.

$                  13,617


$                  12,654


$               12,812


$                  13,327


$                      12,888

Earnings per common share:










Basic

$                      0.19


$                      0.18


$                   0.18


$                      0.19


$                          0.18

Diluted

$                      0.19


$                      0.18


$                   0.18


$                      0.19


$                          0.18

Weighted average common shares outstanding during the period:










Basic

70,299,722


70,196,950


70,185,356


70,177,382


70,129,056

Diluted

70,450,760


70,388,438


70,341,843


70,318,657


70,240,020

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)




Nine Months Ended September 30,


2016


2015


(In Thousands Except Share Data)

Interest and dividend income:




Loans and leases

$                    167,474


$                   157,790

Debt securities

8,829


8,480

Marketable and restricted equity securities

2,213


2,094

Short-term investments

149


98

  Total interest and dividend income

178,665


168,462

Interest expense:




Deposits

14,875


12,926

Borrowed funds

11,980


11,249

  Total interest expense

26,855


24,175

Net interest income

151,810


144,287

Provision for credit losses

7,138


5,931

Net interest income after provision for credit losses

144,672


138,356

Non-interest income:




Deposit Fees

6,650


6,522

Loan Fees

977


818

Loan level derivative income, net

3,697


1,841

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

1,986


1,594

Other

3,893


3,346

  Total non-interest income

17,203


14,121

Non-interest expense:




Compensation and employee benefits

58,179


52,484

Occupancy

10,328


10,444

Equipment and data processing

11,468


11,300

Professional services

2,925


3,241

FDIC insurance

2,677


2,627

Advertising and marketing

2,558


2,449

Amortization of identified intangible assets

1,879


2,187

Other

7,707


8,316

  Total non-interest expense

97,721


93,048

Income before provision for income taxes

64,154


59,429

Provision for income taxes

22,868


21,116

Net income before noncontrolling interest in subsidiary

41,286


38,313

Less net income attributable to noncontrolling interest in subsidiary

2,203


1,857

Net income attributable to Brookline Bancorp, Inc.

$                      39,083


$                     36,456

Earnings per common share:




Basic

$                          0.56


$                         0.52

Diluted

$                          0.56


$                         0.52

Weighted average common shares outstanding during the period:




Basic

70,228,127


70,071,999

Diluted

70,394,465


70,207,983

Dividends declared per common share

$                        0.270


$                       0.265

 

 

BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Asset Quality Analysis (Unaudited)


At and for the Three Months Ended


September 30,
2016


June 30,
2016


March 31,
2016


December 31,
2015


September 30,
2015


(Dollars in Thousands)

NONPERFORMING ASSETS:










Loans and leases accounted for on a nonaccrual basis:










Commercial real estate mortgage

$                      1,688


$                     2,408


$              5,440


$                                 5,482


$                          3,155

Multi-family mortgage

1,418


1,446


1,446


291


309

  Total commercial real estate loans

3,106


3,854


6,886


5,773


3,464











Commercial

24,051


17,944


15,050


6,264


8,326

Equipment financing

6,652


6,947


5,391


2,610


2,896

  Total commercial loans and leases

30,703


24,891


20,441


8,874


11,222











Indirect automobile loans

179


248


308


675


629











Residential mortgage

1,749


2,048


2,132


2,225


2,539

Home equity

1,780


1,976


2,104


1,757


1,818

Other consumer

35


41


34


29


52

  Total consumer loans

3,564


4,065


4,270


4,011


4,409











  Total nonaccrual loans and leases

37,552


33,058


31,905


19,333


19,724











Other real estate owned

367


407


408


729


1,149

Other repossessed assets

785


344


157


614


152

Total nonperforming assets

$                    38,704


$                   33,809


$            32,470


$                               20,676


$                        21,025











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

$                      8,275


$                     4,151


$              3,512


$                                 8,690


$                          8,792











Troubled debt restructurings on accrual

16,303


15,693


16,697


17,953


17,746

Troubled debt restructurings on nonaccrual

15,715


15,621


14,614


4,965


5,960

  Total troubled debt restructurings

$                    32,018


$                   31,314


$            31,311


$                               22,918


$                        23,706











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

0.70 %


0.63 %


0.62 %


0.39 %


0.41 %

Nonperforming assets as a percentage of total assets

0.61 %


0.54 %


0.53 %


0.34 %


0.36 %











PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:










Allowance for loan and lease losses at beginning of period

$                    57,258


$                   58,606


$            56,739


$                               56,472


$                        56,398

Charge-offs

(839)


(4,324)


(875)


(1,929)


(1,931)

Recoveries

319


306


475


540


332

  Net charge-offs

(520)


(4,018)


(400)


(1,389)


(1,599)

Provision for loan and lease losses

2,154


2,670


2,267


1,656


1,673

  Allowance for loan and lease losses at end of period

$                    58,892


$                   57,258


$            58,606


$                               56,739


$                        56,472











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

1.10 %


1.09 %


1.14 %


1.14 %


1.17 %

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

1.15 %


1.13 %


1.20 %


1.20 %


1.25 %











NET CHARGE-OFFS:










Commercial real estate loans

$                           50


$                     1,153


$                 331


$                                       —


$                                —

Commercial loans and leases

375


2,316


64


1,302


1,276

Indirect automobile loans

7


(15)


13


3


117

Consumer loans

88


564


(8)


84


206

  Total net charge-offs

$                         520


$                     4,018


$                 400


$                                 1,389


$                          1,599











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

0.04 %


0.31 %


0.03 %


0.11 %


0.13 %

 

 

BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Average Yields / Costs (Unaudited)


Three Months Ended


September 30, 2016


June 30, 2016


September 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)

$                604,394


$                 2,910


1.93 %


$          605,383


$                  3,157


2.09 %


$              587,804


$              2,904


1.98 %

Marketable and restricted equity securities (2)

66,981


836


4.99 %


66,422


732


4.41 %


76,530


1,111


5.81 %

Short-term investments

36,273


47


0.51 %


60,570


63


0.42 %


36,163


17


0.19 %

Total investments

707,648


3,793


2.14 %


732,375


3,952


2.16 %


700,497


4,032


2.30 %

Loans and Leases:


















Commercial real estate loans (3)

2,872,733


29,470


4.10 %


2,784,627


28,278


4.06 %


2,531,729


26,739


4.22 %

Commercial loans (3)

717,265


7,130


3.90 %


689,696


6,649


3.82 %


636,756


6,570


4.05 %

Equipment financing (3)

759,622


12,189


6.42 %


730,193


11,751


6.44 %


664,010


11,300


6.81 %

Indirect automobile loans (3)

8,466


103


4.83 %


10,255


109


4.27 %


17,872


182


4.05 %

Residential mortgage loans (3)

620,741


5,513


3.55 %


626,249


5,633


3.60 %


613,678


5,437


3.54 %

Other consumer loans (3)

348,050


3,707


4.22 %


340,796


3,200


3.76 %


315,402


2,707


3.40 %

Total loans and leases

5,326,877


58,112


4.36 %


5,181,816


55,620


4.29 %


4,779,447


52,935


4.43 %

Total interest-earning assets

6,034,525


61,905


4.10 %


5,914,191


59,572


4.03 %


5,479,944


56,967


4.16 %

Allowance for loan and lease losses

(58,032)






(58,789)






(56,833)





Non-interest-earning assets

383,604






382,061






367,358





Total assets

$             6,360,097






$       6,237,463






$           5,790,469























Liabilities and Stockholders' Equity:


















Interest-bearing liabilities:


















Deposits:


















NOW accounts

$                295,762


52


0.07 %


$          294,484


53


0.07 %


$              246,163


44


0.07 %

Savings accounts

566,192


318


0.22 %


554,474


336


0.24 %


516,877


257


0.20 %

Money market accounts

1,678,937


1,905


0.45 %


1,655,843


1,867


0.45 %


1,550,477


1,664


0.43 %

Certificates of deposit

1,112,831


2,837


1.01 %


1,132,272


2,762


0.98 %


1,043,418


2,361


0.90 %

Total interest-bearing deposits

3,653,722


5,112


0.56 %


3,637,073


5,018


0.55 %


3,356,935


4,326


0.51 %

Borrowings


















Advances from the FHLBB

921,396


2,778


1.18 %


879,499


2,678


1.20 %


801,379


2,495


1.22 %

Subordinated debentures and notes

83,036


1,259


6.07 %


82,997


1,258


6.06 %


82,866


1,251


6.04 %

Other borrowed funds

46,417


32


0.27 %


41,305


25


0.24 %


32,134


28


0.34 %

Total borrowings

1,050,849


4,069


1.52 %


1,003,801


3,961


1.56 %


916,379


3,774


1.61 %

Total interest-bearing liabilities

4,704,571


9,181


0.78 %


4,640,874


8,979


0.78 %


4,273,314


8,100


0.75 %

Non-interest-bearing liabilities:


















Demand checking accounts

863,854






825,880






793,785





Other non-interest-bearing liabilities

90,025






78,497






58,414





Total liabilities

5,658,450






5,545,251






5,125,513





Brookline Bancorp, Inc. stockholders' equity

695,205






685,996






659,761





Noncontrolling interest in subsidiary

6,442






6,216






5,195





Total liabilities and equity

$             6,360,097






$       6,237,463






$           5,790,469





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



52,724


3.32 %




50,593


3.25 %




48,867


3.41 %

Less adjustment of tax-exempt income



374






336






280



Net interest income



$               52,350






$                50,257






$            48,587



Net interest margin (5)





3.48 %






3.44 %






3.54 %



















(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)


Nine Months Ended


September 30, 2016


September 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)

$                          604,603


$                 9,078


2.00 %


$                577,967


$                  8,529


1.97 %

Marketable and restricted equity securities (2)

66,764


2,247


4.49 %


76,218


2,126


3.72 %

Short-term investments

46,198


149


0.43 %


57,197


98


0.23 %

Total investments

717,565


11,474


2.13 %


711,382


10,753


2.02 %

Loans and Leases:












Commercial real estate loans (3)

2,785,472


85,014


4.07 %


2,504,739


79,375


4.23 %

Commercial loans (3)

692,634


20,430


3.88 %


629,115


19,471


4.09 %

Equipment financing (3)

738,990


35,690


6.44 %


634,310


32,637


6.86 %

Indirect automobile loans (3)

10,398


365


4.68 %


106,210


2,542


3.20 %

Residential mortgage loans (3)

624,102


16,705


3.57 %


593,371


16,005


3.60 %

Other consumer loans (3)

339,672


10,024


3.93 %


307,878


8,373


3.63 %

Total loans and leases

5,191,268


168,228


4.32 %


4,775,623


158,403


4.42 %

Total interest-earning assets

5,908,833


179,702


4.05 %


5,487,005


169,156


4.11 %

Allowance for loan and lease losses

(57,982)






(55,536)





Non-interest-earning assets

379,761






370,038





Total assets

$                       6,230,612






$             5,801,507

















Liabilities and Stockholders' Equity:












Interest-bearing liabilities:












Deposits:












NOW accounts

$                          289,908


156


0.07 %


$                244,253


132


0.07 %

Savings accounts

561,798


998


0.24 %


537,606


793


0.20 %

Money market accounts

1,654,700


5,547


0.45 %


1,544,085


5,173


0.45 %

Certificates of deposit

1,107,600


8,174


0.99 %


1,042,111


6,828


0.88 %

Total interest-bearing deposits

3,614,006


14,875


0.55 %


3,368,055


12,926


0.51 %

Borrowings












Advances from the FHLBB

888,406


8,125


1.20 %


841,196


7,414


1.16 %

Subordinated debentures and notes

82,996


3,773


6.06 %


82,826


3,749


6.03 %

Other borrowed funds

42,463


82


0.26 %


34,808


86


0.33 %

Total borrowings

1,013,865


11,980


1.55 %


958,830


11,249


1.55 %

Total interest-bearing liabilities

4,627,871


26,855


0.78 %


4,326,885


24,175


0.75 %

Non-interest-bearing liabilities:












Demand checking accounts

829,659






757,811





Other non-interest-bearing liabilities

80,774






57,328





Total liabilities

5,538,304






5,142,024





Brookline Bancorp, Inc. stockholders' equity

686,134






654,596





Noncontrolling interest in subsidiary

6,174






4,887





Total liabilities and equity

$                       6,230,612






$             5,801,507





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



152,847


3.27 %




144,981


3.36 %

Less adjustment of tax-exempt income



1,037






694



Net interest income



$             151,810






$              144,287



Net interest margin (5)





3.46 %






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


September 30, 2016


June 30, 2016


March 31, 2016


December 31, 2015


September 30, 2015


(Dollars in Thousands)











Net income, as reported

$                               13,617


$                           12,654


$                        12,812


$                    13,327


$                                   12,888











Average total assets

$                          6,360,097


$                      6,237,463


$                   6,092,858


$               5,957,191


$                              5,790,469

Less: Average goodwill and average identified intangible assets, net

146,997


147,619


148,248


148,930


149,669

Average tangible assets

$                          6,213,100


$                      6,089,844


$                   5,944,610


$               5,808,261


$                              5,640,800











Return on average tangible assets (annualized)

0.88 %


0.83 %


0.86 %


0.92 %


0.91 %











Average total stockholders' equity

$                             695,205


$                         685,996


$                      677,101


$                  667,471


$                                 659,761

Less: Average goodwill and average identified intangible assets, net

146,997


147,619


148,248


148,930


149,669

Average tangible stockholders' equity

$                             548,208


$                         538,377


$                      528,853


$                  518,541


$                                 510,092











Return on average tangible stockholders' equity (annualized)

9.94 %


9.40 %


9.69 %


10.28 %


10.11 %











Brookline Bancorp, Inc. stockholders' equity

$                             696,371


$                         689,656


$                      680,417


$                  667,485


$                                 663,468

Less:










Goodwill

137,890


137,890


137,890


137,890


137,890

Identified intangible assets, net

8,754


9,377


9,998


10,633


11,357

Tangible stockholders' equity

$                             549,727


$                         542,389


$                      532,529


$                  518,962


$                                 514,221











Total assets

$                          6,380,312


$                      6,296,502


$                   6,181,030


$               6,042,338


$                              5,839,529

Less:










Goodwill

137,890


137,890


137,890


137,890


137,890

Identified intangible assets, net

8,754


9,377


9,998


10,633


11,357

Tangible assets

$                          6,233,668


$                      6,149,235


$                   6,033,142


$               5,893,815


$                              5,690,282











Tangible stockholders' equity to tangible assets

8.82 %


8.82 %


8.83 %


8.81 %


9.04 %











Tangible stockholders' equity

$                             549,727


$                         542,389


$                      532,529


$                  518,962


$                                 514,221











Number of common shares issued

75,744,445


75,744,445


75,744,445


75,744,445


75,744,445

Less:










Treasury shares

4,734,512


4,862,193


4,861,554


4,861,554


4,861,085

Unallocated ESOP shares

185,787


194,880


203,973


213,066


222,645

Unvested restricted shares

476,938


484,066


486,035


486,035


486,999

Number of common shares outstanding

70,347,208


70,203,306


70,192,883


70,183,790


70,173,716











Tangible book value per common share

$                                   7.81


$                               7.73


$                            7.59


$                        7.39


$                                       7.33











Allowance for loan and lease losses

$                               58,892


$                           57,258


$                        58,606


$                    56,739


$                                   56,472

Less:










Allowance for acquired loans and leases losses

1,640


2,178


1,938


1,752


2,048

Allowance for originated loan and lease losses

$                               57,252


$                           55,080


$                        56,668


$                    54,987


$                                   54,424











Total loans and leases

$                          5,332,300


$                      5,259,038


$                   5,130,445


$               4,995,540


$                              4,829,152

Less:










Total acquired loans and leases

346,377


371,986


395,782


422,652


457,922

Total originated loans and leases

$                          4,985,923


$                      4,887,052


$                   4,734,663


$               4,572,888


$                              4,371,230











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

1.15 %


1.13 %


1.20 %


1.20 %


1.25 %

 

Brookline Bancorp, Inc.

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SOURCE Brookline Bancorp, Inc.