Exhibit 99.1
Brookline Bancorp Announces First Quarter Net Income of $8.8 Million, EPS of $0.13
Business Fundamentals Remain Strong
BOSTON--(BUSINESS WIRE)--April 24, 2013--Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced net income of $8.8 million, or $0.13 per basic and diluted share, for the first quarter of 2013, compared to $6.3 million, or $0.09 per basic and diluted share, for the first quarter of 2012, and $11.9 million, or $0.17 per basic and diluted share, for the fourth quarter of 2012. Net earnings from operations were also $8.8 million, or $0.13 per basic and diluted share, for the quarter ended March 31, 2013, compared to $10.3 million, or $0.15 per basic and diluted share, for the quarter ended March 31, 2012, after adjustments for merger-related expenses of $4.0 million (after-tax) associated with the January 1, 2012 acquisition of Bancorp Rhode Island, Inc.
Paul Perrault, President and Chief Executive Officer of Brookline Bancorp, Inc., stated: “We are pleased with the continued growth in our commercial loan portfolios, despite the challenges of operating in a low interest-rate environment and a highly competitive marketplace. We remain focused on maintaining our traditionally strong asset quality.”
BALANCE SHEET
Total assets remained flat at $5.1 billion at March 31, 2013 compared to December 31, 2012, and increased $0.2 billion from $4.9 billion at March 31, 2012. Average total assets also stayed flat at $5.1 billion for the quarter ended March 31, 2013 compared to the quarter ended December 31, 2012, and increased $0.2 billion from $4.9 billion for the quarter ended March 31, 2012.
The loan and lease portfolio totaled $4.2 billion, essentially unchanged as compared to December 31, 2012. Average total loans and leases at March 31, 2013 were $4.2 billion, compared to $4.1 billion at December 31, 2012, and $3.9 billion at March 31, 2012. The portfolio has increased $0.2 billion, or 6.1 percent, as compared to March 31, 2012. Strong loan growth continued in our commercial loan portfolios, which increased 5.5 percent on an annualized basis during the first quarter of 2013. At March 31, 2013, the commercial loan and lease and commercial real estate portfolios totaled $2.9 billion, or 69.3 percent of total loans and leases. The indirect automobile portfolio decreased $31.4 million from December 31, 2012 to March 31, 2013, due to fewer loan originations in the auto lending market.
Deposits of $3.6 billion at March 31, 2013 were up slightly from December 31, 2012, and increased 4.8 percent as compared to March 31, 2012. Core deposits increased at a 3.9 percent annualized rate in the first quarter of 2013, raising the core deposit ratio from 72.0 percent as of December 31, 2012 to 72.6 percent at March 31, 2013. Total borrowings deceased $33.6 million from $854.0 million at December 31, 2012 to $820.4 million at March 31, 2013.
Cash and cash equivalents were $92.1 million as of March 31, 2013 as compared to $117.1 million as of December 31, 2012. The decrease during the first quarter of 2013 reflects the redeployment of cash to support adjustments to the Company’s securities portfolio in order to reinvest idle cash. Accordingly, investment securities available-for-sale of $486.6 million increased 4.4 percent from December 31, 2012 to March 31, 2013 on an annualized basis, with total investment securities at 10.8 percent of total assets.
The ratio of stockholders’ equity to total assets was 12.02 percent at March 31, 2013. The ratio of tangible stockholders’ equity to tangible assets was 9.20 percent at March 31, 2013.
NET INTEREST INCOME
Net interest income for the first quarter of 2013 decreased $0.9 million to $43.7 million from $44.6 million in the fourth quarter of 2012.
The decrease was primarily caused by a $1.2 million decrease in interest income on loans and leases, offset by a decrease of $0.5 million in interest expense. The decrease in interest income on loans and leases was driven by continued interest-rate pressure in the marketplace as well as a decrease of $0.3 million in purchase accounting accretion. Yield adjustments related to purchase accounting on acquired loans totaled $1.1 million, or 10 basis points, in the first quarter of 2013, as compared to $1.4 million, or 13 basis points, in the fourth quarter of 2012. The decrease in yield adjustments is due to the Company’s most recent reforecasting of expected cash flows. The decrease in interest expense was a result of a decrease in FHLBB advances and associated borrowing costs, as well as decrease in the interest rates associated with deposits.
Net interest income for the first quarter of 2013 remained relatively stable as compared to the first quarter of 2012. The net interest margin for the first quarter of 2013 was 3.70 percent, as compared to 3.79 percent for the fourth quarter of 2012 and 3.87 percent for the first quarter of 2012. The decrease was a result of continued rate pressure in the lending market.
NON-INTEREST INCOME
Non-interest income for the first quarter of 2013 decreased $3.2 million to $3.3 million from $6.5 million in the fourth quarter of 2012. The decrease was largely a result of a $1.9 million gain on a sale of equipment leases that was undertaken to manage concentration risk in the equipment financing portfolio during the fourth quarter of 2012. In addition, there was a $0.2 million gain on an investment in an affordable housing project in the fourth quarter of 2012.
Non-interest income for the first quarter of 2013 decreased to $3.3 million from $3.6 million in the first quarter of 2012. The change was a combined result of decreased fees, charges, and other income, as well as a larger loss from investments in affordable housing projects in the first quarter of 2013.
NON-INTEREST EXPENSE AND TAX PROVISION
Non-interest expense for the first quarter of 2013 increased $1.9 million as compared to the fourth quarter of 2012 and decreased $1.7 million as compared to first quarter of 2012. Significant changes in non-interest expense included the following:
- Compensation and employee benefit expense increased $0.6 million, or 3.8 percent as compared to the fourth quarter of 2012, and $1.6 million, or 11.0 percent as compared to the first quarter of 2012. This increase is a result of the addition of loan officers and other individuals in key support areas of the Company.
- The increase in compensation and benefit expenses was offset by a substantial decrease in professional service expenses. While professional service expenses stayed flat in the first quarter of 2013 as compared to the fourth quarter of 2012, it decreased $5.0 million, or 76.7 percent, from the first quarter of 2012 to the first quarter of 2013. The higher expense in the first quarter of 2012 was a result of the acquisition of Bancorp Rhode Island, Inc.
- Equipment and data processing expense increased $0.7 million, or 21.0 percent, during the first quarter of 2013. This is a result of additional expenses in conjunction with Bank Rhode Island’s core system conversion, which will continue through the end of the second quarter of 2013, as well as additional IT consulting fees. Equipment and data processing expense in the first quarter of 2013 increased minimally as compared to the first quarter of 2012, mainly due to First Ipswich’s system conversion.
The effective tax rate decreased slightly from 36.0 percent at December 31, 2012 to 35.7 percent of income before taxes at March 31, 2013.
ASSET QUALITY
Asset quality remains stable and strong. Nonperforming loans and leases decreased slightly from $22.2 million at December 31, 2012 to $21.7 million at March 31, 2013. The ratio of nonperforming loans to total loans and leases decreased from 0.53 percent at December 31, 2012 to 0.52 percent at March 31, 2013. Nonperforming assets decreased slightly from $23.7 million at December 31, 2012 or 0.46 percent of total assets to $22.9 million or 0.45 percent of total assets at March 31, 2013.
The provision for loan and lease losses decreased from $3.1 million for the fourth quarter of 2012 to $1.8 million for the first quarter of 2013. The decrease in provision was due to a lower rate of charge-offs and a lower rate of loan growth in the first quarter of 2013 as compared to the fourth quarter of 2012. Net charge-offs decreased from $0.8 million, or 0.08 percent of average loans and leases on an annualized basis for the fourth quarter of 2012 to $0.4 million or 0.04 percent of average loans and leases on an annualized basis for the first quarter of 2013.
The allowance for loan and lease losses was $42.5 million at March 31, 2013, compared to $41.2 million at December 31, 2012, and $34.4 million at March 31, 2012, an increase that reflects the loan growth experienced across the Company. The allowance for loan and lease losses as a percent of total loans and leases was 1.02 percent at March 31, 2013, compared to 0.98 percent at December 31, 2012, and 0.87 percent at March 31, 2012. The allowance for loan and lease losses as a percent of originated loans and leases increased slightly from 1.33 percent at December 31, 2012 to 1.34 percent at March 31, 2013.
DIVIDEND DECLARED
The Company’s Board of Directors approved, for the 44th consecutive quarter, a dividend of $0.085 per share. The dividend will be paid on May 24, 2013, to shareholders of record on May 10, 2013.
CONFERENCE CALL
The Company will conduct a conference call/webcast at 1:30 PM eastern time on Thursday, April 25, 2013 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 playback is 10027149. The call will be available live or 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 $5.1 billion in assets and 46 branches 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 net earnings from operations, the allowance for loan and lease losses 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) |
| | | | | | | | | | |
| | | | | | | | As of and for the
Three Months Ended March 31, |
| | | | | | | | 2013 | | 2012 |
| | | | | | | | (In Thousands Except |
| | | | | | | | Per Share Data) |
| Earnings Data: | | | | | | | | | | |
| Net interest income | | | | | | | | $ | 43,669 | | | $ | 43,634 | |
| Provision for credit losses | | | 1,855 | | | | 3,247 | |
| Non-interest income | | | | | | | | | 3,327 | | | | 3,595 | |
| Non-interest expense | | | | | | | | | 30,772 | | | | 32,449 | |
| Income before income taxes | | | 14,369 | | | | 11,533 | |
| Net income attributable to Brookline Bancorp, Inc. | | | 8,813 | | | | 6,349 | |
| | | | | | | | | | |
| Performance Ratios: | | | | | | | | | | |
| Net interest margin (1) | | | | | | | | | 3.70 | % | | | 3.87 | % |
| Interest rate spread (1) | | | | | | | | | 3.55 | % | | | 3.68 | % |
| Return on average assets | | | | | | | | | 0.70 | % | | | 0.52 | % |
| Return on average stockholders' equity | | | 5.72 | % | | | 4.25 | % |
| | | | | | | | | | |
| Per Common Share Data: | | | | | | | | | | |
| Net income — Basic | | | | | | | | $ | 0.13 | | | $ | 0.09 | |
| Net income — Diluted | | | | | | | | | 0.13 | | | | 0.09 | |
| Cash dividends declared | | | 0.085 | | | | 0.085 | |
| Book value per share (end of period) | | | 8.77 | | | | 8.58 | |
| Tangible book value per share (end of period) (non-GAAP) | | | 6.51 | | | | 6.21 | |
| Stock price (end of period) | | | 9.14 | | | | 9.37 | |
| | | | | | | | | | |
| (1) Calculated on a fully tax-equivalent basis. | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | At or for the Three Months Ended |
| | Mar 31, 2013 | | Dec 31, 2012 | | Sep 30, 2012 | | Jun 30, 2012 | | Mar 31, 2012 |
| | (Dollars in Thousands) |
| Balance Sheet: | | | | | | | | | | |
| Total assets | | $ | 5,110,378 | | | $ | 5,147,534 | | | $ | 5,061,444 | | | $ | 4,972,381 | | | $ | 4,877,124 | |
| Total loans and leases | | | 4,173,985 | | | | 4,175,712 | | | | 4,144,012 | | | | 4,012,544 | | | | 3,933,296 | |
| Total deposits | | | 3,626,033 | | | | 3,616,259 | | | | 3,568,016 | | | | 3,521,206 | | | | 3,459,333 | |
| Brookline Bancorp, Inc. stockholders’ equity | | | 614,039 | | | | 612,097 | | | | 605,962 | | | | 598,865 | | | | 597,531 | |
| | | | | | | | | | |
| Asset Quality: | | | | | | | | | | |
| Nonperforming assets | | $ | 22,941 | | | $ | 23,737 | | | $ | 23,675 | | | $ | 23,831 | | | $ | 14,648 | |
| Nonperforming assets as a percentage of total assets | | | 0.45 | % | | | 0.46 | % | | | 0.47 | % | | | 0.48 | % | | | 0.30 | % |
| Allowance for loan and lease losses | | $ | 42,532 | | | $ | 41,152 | | | $ | 38,913 | | | $ | 37,431 | | | $ | 34,428 | |
| Allowance for loan and lease losses as a percentage | | | | | | | | | | |
| of total loans and leases | | | 1.02 | % | | | 0.98 | % | | | 0.94 | % | | | 0.93 | % | | | 0.87 | % |
| Net loan and lease charge-offs | | $ | 419 | | | $ | 826 | | | $ | 1,539 | | | $ | 3,675 | | | $ | 522 | |
| Net loan and lease charge-offs as a percentage | | | | | | | | | | |
| of average loans and leases (annualized) | | | 0.04 | % | | | 0.08 | % | | | 0.15 | % | | | 0.37 | % | | | 0.05 | % |
| | | | | | | | | | |
| Capital Ratios: | | | | | | | | | | |
| Stockholders’ equity to total assets | | | 12.02 | % | | | 11.89 | % | | | 11.97 | % | | | 12.04 | % | | | 12.25 | % |
| Tangible stockholders’ equity to | | | | | | | | | | |
| tangible assets (non-GAAP) | | | 9.20 | % | | | 9.08 | % | | | 9.08 | % | | | 9.07 | % | | | 9.18 | % |
| | | | | | | | | | |
| BROOKLINE BANCORP, INC. AND SUBSIDIARIES |
| Consolidated Balance Sheets (Unaudited) |
| | | | | | | | | | |
| | March 31, | | December 31, | | September 30, | | June 30, | | March 31, |
| | 2013 | | 2012 | | 2012 | | 2012 | | 2012 |
| | (In Thousands Except Share Data) |
| ASSETS | | | | | | | | | | |
| Cash and due from banks | | $ | 39,330 | | | $ | 78,441 | | | $ | 41,617 | | | $ | 118,411 | | | $ | 88,884 | |
| Short-term investments | | | 52,766 | | | | 38,656 | | | | 34,655 | | | | 98,677 | | | | 44,382 | |
| Total cash and cash equivalents | | | 92,096 | | | | 117,097 | | | | 76,272 | | | | 217,088 | | | | 133,266 | |
| Investment securities available-for-sale | | | 486,625 | | | | 481,323 | | | | 466,822 | | | | 384,533 | | | | 461,498 | |
| Investment securities held-to-maturity | | | 500 | | | | 500 | | | | 500 | | | | 500 | | | | 500 | |
| Total investment securities | | | 487,125 | | | | 481,823 | | | | 467,322 | | | | 385,033 | | | | 461,998 | |
| Loans held-for-sale | | | 839 | | | | 3,233 | | | | 2,303 | | | | 585 | | | | 2,222 | |
| Loans and leases: | | | | | | | | | | |
| Commercial real estate loans: | | | | | | | | | | |
| Commercial real estate mortgage | | | 1,299,496 | | | | 1,301,233 | | | | 1,262,411 | | | | 1,221,202 | | | | 1,200,412 | |
| Multi-family mortgage | | | 585,669 | | | | 606,533 | | | | 628,162 | | | | 612,213 | | | | 596,285 | |
| Construction | | | 115,896 | | | | 98,197 | | | | 86,345 | | | | 88,759 | | | | 77,487 | |
| Total commercial real estate loans | | | 2,001,061 | | | | 2,005,963 | | | | 1,976,918 | | | | 1,922,174 | | | | 1,874,184 | |
| Commercial loans and leases: | | | | | | | | | | |
| Commercial | | | 399,781 | | | | 382,277 | | | | 346,744 | | | | 319,867 | | | | 309,338 | |
| Equipment financing | | | 448,701 | | | | 420,991 | | | | 426,597 | | | | 387,093 | | | | 367,206 | |
| Condominium association | | | 43,043 | | | | 44,187 | | | | 43,732 | | | | 43,596 | | | | 45,872 | |
| Total commercial loans and leases | | | 891,525 | | | | 847,455 | | | | 817,073 | | | | 750,556 | | | | 722,416 | |
| Indirect automobile loans | | | 510,954 | | | | 542,344 | | | | 574,279 | | | | 581,063 | | | | 578,622 | |
| Consumer loans: | | | | | | | | | | |
| Residential mortgage | | | 509,155 | | | | 511,109 | | | | 505,553 | | | | 492,489 | | | | 488,590 | |
| Home equity | | | 254,048 | | | | 261,562 | | | | 263,194 | | | | 260,623 | | | | 262,591 | |
| Other consumer | | | 7,242 | | | | 7,279 | | | | 6,995 | | | | 5,639 | | | | 6,893 | |
| Total consumer loans | | | 770,445 | | | | 779,950 | | | | 775,742 | | | | 758,751 | | | | 758,074 | |
| Total loans and leases | | | 4,173,985 | | | | 4,175,712 | | | | 4,144,012 | | | | 4,012,544 | | | | 3,933,296 | |
| Allowance for loan and lease losses | | | (42,532 | ) | | | (41,152 | ) | | | (38,913 | ) | | | (37,431 | ) | | | (34,428 | ) |
| Net loans and leases | | | 4,131,453 | | | | 4,134,560 | | | | 4,105,099 | | | | 3,975,113 | | | | 3,898,868 | |
| Restricted equity investments | | | 66,553 | | | | 68,661 | | | | 68,661 | | | | 61,291 | | | | 53,554 | |
| Premises and equipment, net | | | 74,223 | | | | 70,791 | | | | 66,814 | | | | 56,248 | | | | 48,908 | |
| Building held-for-sale | | | - | | | | - | | | | 6,046 | | | | 6,046 | | | | 6,046 | |
| Deferred tax asset | | | 29,123 | | | | 27,197 | | | | 27,354 | | | | 25,656 | | | | 24,647 | |
| Goodwill, net | | | 137,890 | | | | 137,890 | | | | 137,890 | | | | 137,890 | | | | 138,914 | |
| Identified intangible assets, net of accumulated amortization | | | 20,345 | | | | 21,510 | | | | 23,307 | | | | 24,578 | | | | 25,849 | |
| Other real estate owned and repossessed assets, net | | | 1,248 | | | | 1,491 | | | | 2,386 | | | | 2,765 | | | | 2,647 | |
| Other assets | | | 69,483 | | | | 83,281 | | | | 77,990 | | | | 80,088 | | | | 80,205 | |
| Total assets | | $ | 5,110,378 | | | $ | 5,147,534 | | | $ | 5,061,444 | | | $ | 4,972,381 | | | $ | 4,877,124 | |
| | | | | | | | | | |
| LIABILITIES AND EQUITY | | | | | | | | | | |
| Deposits: | | | | | | | | | | |
| Demand checking accounts | | $ | 623,315 | | | $ | 623,274 | | | $ | 590,189 | | | $ | 546,036 | | | $ | 529,945 | |
| NOW accounts | | | 194,313 | | | | 212,858 | | | | 183,478 | | | | 185,234 | | | | 181,299 | |
| Savings accounts | | | 509,967 | | | | 515,367 | | | | 520,614 | | | | 503,507 | | | | 511,736 | |
| Money market accounts | | | 1,303,231 | | | | 1,253,819 | | | | 1,231,206 | | | | 1,236,967 | | | | 1,174,805 | |
| Certificate of deposit accounts | | | 995,207 | | | | 1,010,941 | | | | 1,042,529 | | | | 1,049,462 | | | | 1,061,548 | |
| Total deposits | | | 3,626,033 | | | | 3,616,259 | | | | 3,568,016 | | | | 3,521,206 | | | | 3,459,333 | |
| Borrowed funds: | | | | | | | | | | |
| Advances from the FHLBB | | | 759,675 | | | | 790,865 | | | | 771,110 | | | | 733,394 | | | | 698,671 | |
| Other borrowed funds | | | 60,772 | | | | 63,104 | | | | 57,146 | | | | 60,707 | | | | 59,865 | |
| Total borrowed funds | | | 820,447 | | | | 853,969 | | | | 828,256 | | | | 794,101 | | | | 758,536 | |
| Mortgagors’ escrow accounts | | | 7,823 | | | | 6,946 | | | | 7,066 | | | | 6,942 | | | | 7,156 | |
| Accrued expenses and other liabilities | | | 38,825 | | | | 54,551 | | | | 47,889 | | | | 47,328 | | | | 50,883 | |
| Total liabilities | | | 4,493,128 | | | | 4,531,725 | | | | 4,451,227 | | | | 4,369,577 | | | | 4,275,908 | |
| | | | | | | | | | |
| Equity: | | | | | | | | | | |
| Brookline Bancorp, Inc. stockholders’ equity: | | | | | | | | | | |
| Preferred stock, $0.01 par value; 50,000,000 shares | | | | | | | | | | |
| authorized; none issued | | | - | | | | - | | | | - | | | | - | | | | - | |
| Common stock, $0.01 par value; 200,000,000 shares authorized; | | | | | | | | |
75,744,445 shares, 75,749,825 shares, 75,749,819 shares, | | | | | | | | | | |
| 75,414,713 shares and 75,414,713 shares issued, respectively | | | 754 | | | | 754 | | | | 754 | | | | 754 | | | | 754 | |
| Additional paid-in capital | | | 618,711 | | | | 618,429 | | | | 618,176 | | | | 618,184 | | | | 618,031 | |
| Retained earnings, partially restricted | | | 56,211 | | | | 53,358 | | | | 47,451 | | | | 42,006 | | | | 40,398 | |
| Accumulated other comprehensive income | | | 2,233 | | | | 3,483 | | | | 3,569 | | | | 1,969 | | | | 2,457 | |
| Treasury stock, at cost; 5,373,733 shares | | | (62,107 | ) | | | (62,107 | ) | | | (62,107 | ) | | | (62,107 | ) | | | (62,107 | ) |
| Unallocated common stock held by ESOP; 323,355 shares, | | | | | | | | | | |
| 333,918 shares, 344,991 shares, 356,064 shares, | | | | | | | | | | |
| and 367,137 shares, respectively | | | (1,763 | ) | | | (1,820 | ) | | | (1,881 | ) | | | (1,941 | ) | | | (2,002 | ) |
| Total Brookline Bancorp, Inc. stockholders’ equity | | | 614,039 | | | | 612,097 | | | | 605,962 | | | | 598,865 | | | | 597,531 | |
| Noncontrolling interest in subsidiary | | | 3,211 | | | | 3,712 | | | | 4,255 | | | | 3,939 | | | | 3,685 | |
| Total equity | | | 617,250 | | | | 615,809 | | | | 610,217 | | | | 602,804 | | | | 601,216 | |
| Total liabilities and equity | | $ | 5,110,378 | | | $ | 5,147,534 | | | $ | 5,061,444 | | | $ | 4,972,381 | | | $ | 4,877,124 | |
| | | | | | | | | | |
| BROOKLINE BANCORP, INC. AND SUBSIDIARIES |
| Consolidated Statements of Income (Unaudited) |
| | | | | |
| | | Three Months Ended March 31, |
| | | 2013 | | 2012 |
| | | (In Thousands Except Share Data) |
| Interest and dividend income: | | | | | |
| Loans and leases | | | $ | 49,419 | | | $ | 49,643 | |
| Debt securities | | | | 1,852 | | | | 3,229 | |
| Short-term investments | | | | 31 | | | | 27 | |
| Marketable and restricted equity securities | | | | 310 | | | | 92 | |
| Total interest and dividend income | | | | 51,612 | | | | 52,991 | |
| | | | | |
| Interest expense: | | | | | |
| Deposits | | | | 4,834 | | | | 5,517 | |
| Borrowed funds and subordinated debt | | | | 3,109 | | | | 3,840 | |
| Total interest expense | | | | 7,943 | | | | 9,357 | |
| | | | | |
| Net interest income | | | | 43,669 | | | | 43,634 | |
| Provision for credit losses | | | | 1,855 | | | | 3,247 | |
| Net interest income after provision for credit losses | | | | 41,814 | | | | 40,387 | |
| | | | | |
| Non-interest income: | | | | | |
| Fees, charges and other income | | | | 3,639 | | | | 3,733 | |
| Loss from investments in affordable housing projects | | | | (312 | ) | | | (138 | ) |
| Gain on sales of securities, net | | | | - | | | | - | |
| Gain on sales of loans and leases | | | | - | | | | - | |
| Total non-interest income | | | | 3,327 | | | | 3,595 | |
| | | | | |
| Non-interest expense: | | | | | |
| Compensation and employee benefits | | | | 16,298 | | | | 14,688 | |
| Occupancy | | | | 3,083 | | | | 2,676 | |
| Equipment and data processing | | | | 3,861 | | | | 3,645 | |
| Professional services | | | | 1,501 | | | | 6,453 | |
| FDIC insurance | | | | 934 | | | | 920 | |
| Advertising and marketing | | | | 670 | | | | 703 | |
| Amortization of identified intangible assets | | | | 1,165 | | | | 1,283 | |
| Other | | | | 3,260 | | | | 2,081 | |
| Total non-interest expense | | | | 30,772 | | | | 32,449 | |
| | | | | |
| Income before income taxes | | | | 14,369 | | | | 11,533 | |
| Provision for income taxes | | | | 5,129 | | | | 4,899 | |
| Net income | | | | 9,240 | | | | 6,634 | |
| Less net income attributable to noncontrolling | | | | | |
| interest in subsidiary | | | | 427 | | | | 285 | |
| Net income attributable to Brookline Bancorp, Inc. | | | $ | 8,813 | | | $ | 6,349 | |
| | | | | |
| Earnings per common share: | | | | | |
| Basic | | | $ | 0.13 | | | $ | 0.09 | |
| Diluted | | | | 0.13 | | | | 0.09 | |
| | | | | |
| Weighted average common shares outstanding during the period: | | | | | |
| Basic | | | | 69,762,784 | | | | 69,664,619 | |
| Diluted | | | | 69,830,630 | | | | 69,665,873 | |
| | | | | |
| Dividends declared per common share | | | $ | 0.085 | | | $ | 0.085 | |
| | | | | |
| | | | | |
| * Certain amounts previously reported have been reclassified to conform to the current period's presentation. |
| | |
| BROOKLINE BANCORP, INC. AND SUBSIDIARIES |
| Asset Quality Analysis (Unaudited) |
| | | | | | | | | | |
| | At or for the Three Months Ended |
| | Mar 31, 2013 | | Dec 31, 2012 | | Sep 30, 2012 | | Jun 30, 2012 | | Mar 31, 2012 |
| | (Dollars in Thousands) |
| NONPERFORMING ASSETS: | | | | | | | | | | |
| | | | | | | | | | |
| Loans and leases accounted for on a nonaccrual basis: | | | | | | | | | | |
| Commercial real estate mortgage | | $ | 3,970 | | | $ | 4,014 | | | $ | 3,610 | | | $ | 3,674 | | | $ | 1,593 | |
| Multi-family mortgage | | | 4,132 | | | | 4,233 | | | | 5,157 | | | | 3,129 | | | | 2,634 | |
| Construction | | | - | | | | - | | | | - | | | | 344 | | | | 352 | |
| Total commercial real estate loans | | | 8,102 | | | | 8,247 | | | | 8,767 | | | | 7,147 | | | | 4,579 | |
| | | | | | | | | | |
| Commercial | | | 5,035 | | | | 5,454 | | | | 5,432 | | | | 6,896 | | | | 2,146 | |
| Equipment financing | | | 3,595 | | | | 3,873 | | | | 3,040 | | | | 2,375 | | | | 1,226 | |
| Condominium association | | | 6 | | | | 8 | | | | 9 | | | | 11 | | | | 13 | |
| Total commercial loans and leases | | | 8,636 | | | | 9,335 | | | | 8,481 | | | | 9,282 | | | | 3,385 | |
| | | | | | | | | | |
| Indirect automobile loans | | | 62 | | | | 99 | | | | 80 | | | | 91 | | | | 27 | |
| | | | | | | | | | |
| Residential mortgage | | | 3,724 | | | | 3,804 | | | | 2,924 | | | | 3,710 | | | | 3,651 | |
| Home equity | | | 1,150 | | | | 716 | | | | 988 | | | | 831 | | | | 346 | |
| Other consumer | | | 19 | | | | 45 | | | | 49 | | | | 5 | | | | 13 | |
| Total consumer loans | | | 4,893 | | | | 4,565 | | | | 3,961 | | | | 4,546 | | | | 4,010 | |
| | | | | | | | | | |
| Total nonaccrual loans and leases | | | 21,693 | | | | 22,246 | | | | 21,289 | | | | 21,066 | | | | 12,001 | |
| | | | | | | | | | |
| Other real estate owned | | | 943 | | | | 903 | | | | 1,690 | | | | 2,082 | | | | 2,207 | |
| Other repossessed assets | | | 305 | | | | 588 | | | | 696 | | | | 683 | | | | 440 | |
| | | | | | | | | | |
| Total nonperforming assets | | $ | 22,941 | | | $ | 23,737 | | | $ | 23,675 | | | $ | 23,831 | | | $ | 14,648 | |
| | | | | | | | | | |
| Troubled debt restructurings on accrual | | $ | 5,126 | | | $ | 7,191 | | | $ | 6,588 | | | $ | 6,443 | | | $ | 6,692 | |
| | | | | | | | | | |
| Nonperforming loans and leases as a percentage of total loans and leases | | | 0.52 | % | | | 0.53 | % | | | 0.51 | % | | | 0.52 | % | | | 0.30 | % |
| Nonperforming assets as a percentage of total assets | | | 0.45 | % | | | 0.46 | % | | | 0.47 | % | | | 0.48 | % | | | 0.30 | % |
| | | | | | | | | | |
| | | | | | | | | | |
| PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES: | | |
| | | | | | | | | | |
| Allowance for loan and lease losses at beginning of period | | $ | 41,152 | | | $ | 38,913 | | | $ | 37,431 | | | $ | 34,428 | | | $ | 31,703 | |
| Charge-offs | | | (661 | ) | | | (1,527 | ) | | | (1,807 | ) | | | (3,970 | ) | | | (788 | ) |
| Recoveries | | | 242 | | | | 701 | | | | 268 | | | | 295 | | | | 266 | |
| Net charge-offs | | | (419 | ) | | | (826 | ) | | | (1,539 | ) | | | (3,675 | ) | | | (522 | ) |
| Provision for loan and lease losses | | | 1,799 | | | | 3,065 | | | | 3,021 | | | | 6,678 | | | | 3,247 | |
| Allowance for loan and lease losses at end of period | | $ | 42,532 | | | $ | 41,152 | | | $ | 38,913 | | | $ | 37,431 | | | $ | 34,428 | |
| | | | | | | | | | |
| Allowance for loan and lease losses as a percentage of | | | | | | | | | | |
| total loans and leases | | | 1.02 | % | | | 0.98 | % | | | 0.94 | % | | | 0.93 | % | | | 0.87 | % |
| Allowance for loan and lease losses as a percentage of | | | | | | | | | | |
| originated loans and leases | | | 1.34 | % | | | 1.33 | % | | | 1.31 | % | | | 1.33 | % | | | 1.29 | % |
| | | | | | | | | | |
| NET CHARGE-OFFS: | | | | | | | | | | |
| | | | | | | | | | |
| Commercial real estate loans | | $ | (4 | ) | | $ | - | | | $ | (38 | ) | | $ | (40 | ) | | $ | (40 | ) |
| Commercial loans and leases | | | 166 | | | | 196 | | | | 1,179 | | | | 3,292 | | | | 263 | |
| Indirect automobile loans | | | 231 | | | | 366 | | | | 301 | | | | 225 | | | | 292 | |
| Consumer loans | | | 26 | | | | 264 | | | | 97 | | | | 198 | | | | 7 | |
| Total net charge-offs | | $ | 419 | | | $ | 826 | | | $ | 1,539 | | | $ | 3,675 | | | $ | 522 | |
| | | | | | | | | | |
| Net loan and lease charge-offs as a percentage of | | | | | | | | | | |
| average loans and leases (annualized) | | | 0.04 | % | | | 0.08 | % | | | 0.15 | % | | | 0.37 | % | | | 0.05 | % |
| | | | | | | | | | |
| ** Historic data to be re-allocated to respective loan portfolios in the final press release |
| | | | | | | | | | |
| BROOKLINE BANCORP, INC. AND SUBSIDIARIES |
| Average Yields / Costs (Unaudited) |
| | | | | | | | | | | | | | | | | | |
| | Three Months Ended |
| | March 31, 2013 | | December 31, 2012 | | March 31, 2012 |
| | 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: | | | | | | | | | | | | | | | | | | |
| Short-term investments | | $ | 57,695 | | | $ | 29 | | 0.20 | % | | $ | 70,040 | | | $ | 42 | | 0.24 | % | | $ | 50,810 | | | $ | 27 | | 0.21 | % |
| Investment securities available-for-sale (2) | | | 471,509 | | | | 1,862 | | 1.58 | % | | | 456,690 | | | | 1,854 | | 1.62 | % | | | 517,843 | | | | 3,237 | | 2.50 | % |
| Restricted equity securities (2) | | | 68,550 | | | | 355 | | 2.08 | % | | | 68,660 | | | | 508 | | 2.95 | % | | | 55,943 | | | | 108 | | 0.78 | % |
| Commercial real estate loans (3) | | | 1,988,501 | | | | 24,315 | | 4.89 | % | | | 1,967,921 | | | | 23,798 | | 4.86 | % | | | 1,829,833 | | | | 23,468 | | 5.17 | % |
| Commercial loans (3) | | | 426,573 | | | | 4,569 | | 4.28 | % | | | 395,991 | | | | 5,042 | | 5.08 | % | | | 393,861 | | | | 4,588 | | 4.67 | % |
| Equipment financing (3) | | | 436,983 | | | | 8,001 | | 7.38 | % | | | 428,867 | | | | 8,285 | | 7.73 | % | | | 341,736 | | | | 6,756 | | 7.91 | % |
| Indirect automobile loans (3) | | | 526,923 | | | | 4,916 | | 3.78 | % | | | 560,118 | | | | 5,510 | | 3.91 | % | | | 574,926 | | | | 6,247 | | 4.37 | % |
| Residential mortgage loans (3) | | | 508,303 | | | | 5,165 | | 4.10 | % | | | 507,955 | | | | 5,323 | | 4.19 | % | | | 491,012 | | | | 5,544 | | 4.52 | % |
| Other consumer loans (3) | | | 265,047 | | | | 2,616 | | 4.00 | % | | | 269,019 | | | | 2,713 | | 4.01 | % | | | 273,561 | | | | 3,040 | | 4.47 | % |
| Total interest-earning assets | | | 4,750,084 | | | | 51,828 | | 4.38 | % | | | 4,725,261 | | | | 53,075 | | 4.50 | % | | | 4,529,525 | | | | 53,015 | | 4.70 | % |
| Allowance for loan and lease losses | | | (41,487 | ) | | | | | | | (39,435 | ) | | | | | | | (32,999 | ) | | | | |
| Non-interest-earning assets | | | 362,566 | | | | | | | | 398,980 | | | | | | | | 364,369 | | | | | |
| Total assets | | $ | 5,071,163 | | | | | | | $ | 5,084,806 | | | | | | | $ | 4,860,895 | | | | | |
| | | | | | | | | | | | | | | | | | |
| Liabilities and Stockholders' Equity: | | | | | | | | | | | | | | | | | | |
| Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | |
| Interest-bearing deposits: | | | | | | | | | | | | | | | | | | |
| NOW accounts | | $ | 190,320 | | | $ | 51 | | 0.11 | % | | $ | 184,849 | | | $ | 48 | | 0.10 | % | | $ | 179,086 | | | $ | 53 | | 0.12 | % |
| Savings accounts | | | 514,383 | | | | 337 | | 0.27 | % | | | 518,452 | | | | 374 | | 0.29 | % | | | 511,147 | | | | 498 | | 0.39 | % |
| Money market accounts | | | 1,294,593 | | | | 2,061 | | 0.65 | % | | | 1,246,514 | | | | 2,115 | | 0.68 | % | | | 1,143,545 | | | | 2,152 | | 0.76 | % |
| Certificates of deposit | | | 1,002,602 | | | | 2,385 | | 0.96 | % | | | 1,028,884 | | | | 2,540 | | 0.98 | % | | | 1,078,276 | | | | 2,813 | | 1.05 | % |
| Total interest-bearing deposits (4) | | | 3,001,898 | | | | 4,834 | | 0.65 | % | | | 2,978,699 | | | | 5,077 | | 0.68 | % | | | 2,912,054 | | | | 5,516 | | 0.76 | % |
| Advances from the FHLBB | | | 753,270 | | | | 2,955 | | 1.59 | % | | | 757,842 | | | | 3,207 | | 1.68 | % | | | 723,831 | | | | 3,671 | | 2.04 | % |
| Other borrowed funds | | | 63,065 | | | | 154 | | 0.99 | % | | | 62,299 | | | | 128 | | 0.82 | % | | | 58,766 | | | | 170 | | 1.16 | % |
| Total interest-bearing liabilities | | | 3,818,233 | | | | 7,943 | | 0.84 | % | | | 3,798,840 | | | | 8,412 | | 0.88 | % | | | 3,694,651 | | | | 9,357 | | 1.02 | % |
| Non-interest-bearing liabilities: | | | | | | | | | | | | | | | | | | |
| Demand checking accounts (4) | | | 607,878 | | | | | | | | 612,267 | | | | | | | | 509,522 | | | | | |
| Other non-interest-bearing liabilities | | | 24,575 | | | | | | | | 58,496 | | | | | | | | 55,182 | | | | | |
| Total liabilities | | | 4,450,686 | | | | | | | | 4,469,603 | | | | | | | | 4,259,355 | | | | | |
| Brookline Bancorp, Inc. stockholders’ equity | | | 616,627 | | | | | | | | 611,181 | | | | | | | | 597,978 | | | | | |
| Noncontrolling interest in subsidiary | | | 3,850 | | | | | | | | 4,022 | | | | | | | | 3,562 | | | | | |
| Total liabilities and equity | | $ | 5,071,163 | | | | | | | $ | 5,084,806 | | | | | | | $ | 4,860,895 | | | | | |
| Net interest income (tax-equivalent basis) / | | | | | | | | | | | | | | | | | | |
| Interest rate spread (5) | | | | | 43,885 | | 3.55 | % | | | | | 44,663 | | 3.62 | % | | | | | 43,658 | | 3.68 | % |
| Less adjustment of tax-exempt income | | | | | 216 | | | | | | | 99 | | | | | | | 24 | | |
| Net interest income | | | | $ | 43,669 | | | | | | $ | 44,564 | | | | | | $ | 43,634 | | |
| Net interest margin (6) | | | | | | 3.70 | % | | | | | | 3.79 | % | | | | | | 3.87 | % |
| | | | | | | | | | | | | | | | | | |
| (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 securities available-for-sale. Equity securities include marketable equity securities and restricted equity 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) Including non-interest-bearing checking accounts, the average interest rate on total deposits was 0.54%, 0.56% and 0.65% in the three months ended March 31, 2013, December 31, 2012, and March 31, 2012, respectively. |
|
| (5) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities. |
| |
| (6) 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) |
| | | | | | | | | | |
| | | | | | Three Months Ended March 31, |
| | | | | | | | 2013 | | 2012 |
| Reconciliation Table - Non-GAAP Financial Information | | (Dollars in Thousands |
| | | | | | Except Share Data) |
| | | | | | | | | | |
| Net income attributable to Brookline Bancorp, Inc. | | $ | 8,813 | | | $ | 6,349 | |
| Add: | | | | | | | | | | |
| Acquisition-related expenses (after-tax) | | | - | | | | 3,972 | |
| Net earnings from operations | | $ | 8,813 | | | $ | 10,321 | |
| | | | | | | | | | |
| Operating earnings per common share: | | | | |
| Basic | | | | | | | | $ | 0.13 | | | $ | 0.15 | |
| Diluted | | | | | | | | | 0.13 | | | | 0.15 | |
| | | | | | | | | | |
| Weighted average common shares outstanding during the period: | | | | |
| Basic | | | | | | | | | 69,762,784 | | | | 69,664,619 | |
| Diluted | | | | | | | | | 69,830,630 | | | | 69,665,873 | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | Mar 31, 2013 | | Dec 31, 2012 | | Sep 30, 2012 | | Jun 30, 2012 | | Mar 31, 2012 |
| | (Dollars in Thousands) |
| | | | | | | | | | |
| Brookline Bancorp, Inc. stockholders’ equity | | $ | 614,039 | | | $ | 612,097 | | | $ | 605,962 | | | | 598,865 | | | $ | 597,531 | |
| Less: | | | | | | | | | | |
| Goodwill | | | 137,890 | | | | 137,890 | | | | 137,890 | | | | 137,890 | | | | 138,914 | |
| Identified intangible assets | | | 20,345 | | | | 21,510 | | | | 23,307 | | | | 24,578 | | | | 25,849 | |
| Tangible stockholders' equity | | $ | 455,804 | | | $ | 452,697 | | | $ | 444,765 | | | $ | 436,397 | | | $ | 432,768 | |
| | | | | | | | | | |
| Total assets | | | 5,110,378 | | | | 5,147,534 | | | | 5,061,444 | | | | 4,972,381 | | | | 4,877,124 | |
| Less: | | | | | | | | | | |
| Goodwill | | | 137,890 | | | | 137,890 | | | | 137,890 | | | | 137,890 | | | | 138,914 | |
| Identified intangible assets | | | 20,345 | | | | 21,510 | | | | 23,307 | | | | 24,578 | | | | 25,849 | |
| Tangible assets | | $ | 4,952,143 | | | $ | 4,988,134 | | | $ | 4,900,247 | | | $ | 4,809,913 | | | $ | 4,712,361 | |
| | | | | | | | | | |
| Tangible stockholders’ equity to tangible assets | | | 9.20 | % | | | 9.08 | % | | | 9.08 | % | | | 9.07 | % | | | 9.18 | % |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | Mar 31, 2013 | | Dec 31, 2012 | | Sep 30, 2012 | | Jun 30, 2012 | | Mar 31, 2012 |
| | (Dollars in Thousands Except Per Share Data) |
| | | | | | | | | | |
| Tangible stockholders' equity | | $ | 455,804 | | | $ | 452,697 | | | $ | 444,765 | | | $ | 436,397 | | | $ | 432,768 | |
| | | | | | | | | | |
| Number of common shares issued | | | 75,744,445 | | | | 75,749,825 | | | | 75,749,819 | | | | 75,414,713 | | | | 75,414,713 | |
| Less: | | | | | | | | | | |
| Treasury shares | | | 5,373,733 | | | | 5,373,733 | | | | 5,373,733 | | | | 5,373,733 | | | | 5,373,733 | |
| Unallocated ESOP shares | | | 323,355 | | | | 333,918 | | | | 344,991 | | | | 356,064 | | | | 367,137 | |
| Number of common shares outstanding | | | 70,047,357 | | | | 70,042,174 | | | | 70,031,095 | | | | 69,684,916 | | | | 69,673,843 | |
| | | | | | | | | | |
| Tangible book value per common share | | $ | 6.51 | | | $ | 6.46 | | | $ | 6.35 | | | $ | 6.26 | | | $ | 6.21 | |
CONTACT:
Brookline Bancorp, Inc.
Julie A. Gerschick, 617-425-5331
Chief Financial Officer and Treasurer
jgerschick@brkl.com
