Exhibit 99.1
Brookline Bancorp Announces Third Quarter Net Income of $9.4 Million, EPS of $0.14
Steady Profitability - Asset Quality Improves
BOSTON--(BUSINESS WIRE)--October 23, 2013--Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced net income of $9.4 million, or $0.14 per basic share and $0.13 per diluted share, for the third quarter of 2013, compared to $9.5 million, or $0.14 per basic and diluted share, for the second quarter of 2013, and $11.4 million, or $0.16 per basic and diluted share, for the third quarter of 2012.
Paul Perrault, President and Chief Executive Officer of Brookline Bancorp, Inc., stated: “Brookline delivered another solid quarter for our shareholders in what continues to be a challenging environment. We are pleased to report growth in commercial real estate loans, commercial loans and deposits—growth that reflects the hard work of our dedicated bankers in a very competitive marketplace as well as the strength of our commercial banking niche. We are also pleased to report continuing declines in nonperforming assets to 0.32 percent of total assets, a level that is one of the lowest amongst our peers.”
BALANCE SHEET
Total assets increased $85.7 million during the third quarter of 2013 to $5.2 billion at September 30, 2013, and increased $174.8 million from $5.1 billion at September 30, 2012. The growth in total assets during the third quarter of 2013 is primarily driven by loans and leases, which increased $94.5 million to $4.3 billion at September 30, 2013, representing 9 percent growth on an annualized basis. At September 30, 2013, the commercial real estate and commercial loan and lease portfolios totaled $3.1 billion, or 71.7 percent of total loans and leases, as compared to $3.0 billion, or 70.2 percent at June 30, 2013, and $2.8 billion, or 67.4 percent at September 30, 2012. Strong loan growth continued in our commercial real estate portfolio, which increased $61.8 million during the third quarter of 2013, or 12 percent on an annualized basis. This growth offsets the decrease of $38.8 million in the indirect automobile portfolio during the same period.
Cash, cash equivalents, and investment securities were flat quarter-to-quarter and up $32.7 million year-to-year to $576.3 million, or 11.0 percent of total assets at September 30, 2013, as compared to $579.5 million, or 11.3 percent of total assets at June 30, 2013, and $543.6 million, or 10.7 percent of total assets at September 30, 2012.
Deposits of $3.7 billion at September 30, 2013 were up $81.0 million from June 30, 2013 and up $170.0 million from September 30, 2012. This represents an annualized increase of 9 percent from June 30, 2013. Core deposits, which consist of demand checking, NOW, savings, and money market accounts, increased at a 15 percent annualized rate in the third quarter of 2013, raising the core deposit ratio from 73.4 percent at June 30, 2013 to 74.6 percent at September 30, 2013. Total borrowings at September 30, 2013 remained flat as compared to June 30, 2013 and September 30, 2012.
The ratio of stockholders’ equity to total assets was 11.74 percent at September 30, 2013, as compared to 11.87 percent at June 30, 2013. The ratio of tangible stockholders’ equity to tangible assets was 9.03 percent at September 30, 2013, as compared to 9.10% at June 30, 2013.
NET INTEREST INCOME
Net interest income for the third quarter of 2013 decreased $2.0 million to $43.4 million from $45.4 million for the second quarter of 2013, largely as a result of the inclusion of a $1.0 million prepayment penalty received on a commercial loan payoff in the second quarter of 2013. Lending rate pressures account for the remaining decline. Net interest margin decreased from 3.78 percent for the three months ending June 30, 2013 to 3.56 percent for the three months ended September 30, 2013.
NON-INTEREST INCOME
Non-interest income for the third quarter of 2013 increased $0.4 million to $3.5 million as compared to $3.1 million for the second quarter of 2013. The quarter-to-quarter increase is largely a result of a $0.2 million recovery on an investment and a decrease of $0.1 million in losses on investments in affordable housing projects.
Non-interest income for the first nine months of 2013 decreased $2.2 million to $9.9 million from $12.1 million in 2012. Several factors contributed to the year-to-year decrease, including an increase of $1.0 million in losses from investments in affordable housing projects, a reduction of $0.5 million in loan-related gains on sale and fee income, an increase of $0.5 million in deposit-related income from a larger deposit base, and the inclusion of a net gain of $0.8 million on sales of securities in 2012.
NON-INTEREST EXPENSE
Non-interest expense for the third quarter of 2013 decreased $1.3 million to $29.6 million from $30.8 million for the second quarter of 2013. Quarter-to-quarter changes in the components of non-interest expense included the following:
- Compensation and employee benefit expense decreased $1.1 million, or 7 percent, in part as a result of a $0.6 million reduction in Supplemental Executive Retirement Plan expense and a $0.8 million reduction of certain compensation-related expenses.
- Occupancy expense increased $0.4 million, or 16 percent, due in part to an increase in real estate taxes due and the retirement of certain Premises and Equipment.
Non-interest expense for the first nine months of 2013 decreased $0.4 million to $91.1 million from $91.5 million in 2012. Year-to-year changes in the components of non-interest expense included the following:
- Compensation and employee benefit expense increased $5.0 million, or 11 percent, compared to the first nine months of 2012. This year-to-year increase is largely a result of additions to staff to support systems conversions and to further the Company’s infrastructure build which is nearing completion.
- Occupancy expense increased $1.4 million, or 18 percent, primarily due to increased real estate taxes on the Corporate Headquarters and the retirement of certain Premises and Equipment.
- Equipment and data processing expense increased $0.9 million, or 8 percent, primarily due to upgrades in data processing, purchases of equipment, and conversion-related expenses in conjunction with Bank Rhode Island’s core system conversion.
- Professional services expense decreased $6.6 million year-over-year largely as a result of the inclusion of $5.4 million of acquisition-related expense in 2012; and a reduction in the costs for integration expenses, bank charter conversions costs, and infrastructure-related expenses in 2013.
RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY
The return on average assets remained flat during the third quarter of 2013 as compared to the second quarter 2013 and decreased to 0.73 percent for the three months ended September 30, 2013 from 0.90 percent for the same period in 2012. Similarly, the return on average tangible stockholders’ equity remained flat during the third quarter of 2013 as compared to the second quarter 2013, and decreased to 8.27 percent for the three months ended September 30, 2013 from 10.27 percent as compared to the same period in 2012.
ASSET QUALITY
Nonperforming loans and leases decreased $2.1 million from $17.5 million, or 0.34 percent of total assets, at June 30, 2013 to $15.4 million, or 0.29 percent of total assets, at September 30, 2013. The ratio of nonperforming loans and leases to total loans and leases decreased from 0.42 percent at June 30, 2013 to 0.36 percent at September 30, 2013. Nonperforming assets also decreased approximately $2.2 million from $19.0 million, or 0.37 percent of total assets, at June 30, 2013 to $16.7 million, or 0.32 percent of total assets at September 30, 2013.
The provision for loan and lease losses increased from $2.4 million for the second quarter of 2013 to $2.7 million for the third quarter of 2013, primarily attributable to an increase of $0.6 million for growth in the commercial real estate and commercial loans and leases portfolios, a reduction of $1.2 million in general allowances due to improving asset quality and economic metrics, and an additional allowance of $0.7 million recorded for subsequent deterioration in the acquired loan portfolios.
The allowance for loan and lease losses was $46.4 million at September 30, 2013, compared to $44.3 million at June 30, 2013, and $38.9 million at September 30, 2012. The allowance for loan and lease losses as a percent of total loans and leases was 1.08 percent at September 30, 2013, compared to 1.05 percent at June, 30, 2013, and 0.94 percent at September 30, 2012. The allowance for loan and lease losses related to originated loans and leases as a percent of originated loans and leases decreased slightly from 1.34 percent at June 30, 2013 to 1.31 percent at September 30, 2013.
DIVIDEND DECLARED
The Company’s Board of Directors approved, for the 46th consecutive quarter, a dividend of $0.085 per share. The dividend will be paid on November 22, 2013, to shareholders of record on November 8, 2013.
CONFERENCE CALL
The Company will conduct a conference call/webcast at 1:30 PM eastern time on Thursday, October 24, 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 10035423. 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 $5.2 billion in assets and 47 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 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.
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| BROOKLINE BANCORP, INC. AND SUBSIDIARIES |
| Selected Financial Highlights (Unaudited) |
| | | | | | | | | | |
| | At and for the Three Months
Ended September 30, | | At and for the Nine Months
Ended September 30, | | |
| | | 2013 | | | | 2012 | | | | 2013 | | | | 2012 | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| Earnings Data: | | | | | | | | | | |
| Net interest income | | $ | 43,412 | | | $ | 46,411 | | | $ | 132,444 | | | $ | 132,805 | | | |
| Provision for credit losses | | | 2,748 | | | | 2,862 | | | | 7,042 | | | | 12,787 | | | |
| Non-interest income | | | 3,453 | | | | 3,785 | | | | 9,918 | | | | 12,101 | | | |
| Non-interest expense | | | 29,553 | | | | 30,436 | | | | 91,140 | | | | 91,507 | | | |
| Income before income taxes | | | 14,564 | | | | 16,898 | | | | 44,180 | | | | 40,612 | | | |
| Net income attributable to Brookline Bancorp, Inc. | | | 9,429 | | | | 11,401 | | | | 27,732 | | | | 25,279 | | | |
| | | | | | | | | | |
| Performance Ratios: | | | | | | | | | | |
| Net interest margin (1) | | | 3.56 | % | | | 4.00 | % | | | 3.68 | % | | | 3.88 | % | | |
| Interest-rate spread (1) | | | 3.40 | % | | | 3.83 | % | | | 3.52 | % | | | 3.70 | % | | |
| Return on average assets | | | 0.73 | % | | | 0.90 | % | | | 0.72 | % | | | 0.68 | % | | |
| Return on average stockholders' equity | | | 6.15 | % | | | 7.53 | % | | | 6.01 | % | | | 5.63 | % | | |
| Return on average tangible stockholders' equity | | | 8.27 | % | | | 10.27 | % | | | 8.08 | % | | | 7.79 | % | | |
| Efficiency ratio (non-GAAP) | | | 63.06 | % | | | 60.63 | % | | | 64.02 | % | | | 63.15 | % | | |
| | | | | | | | | | |
| Per Common Share Data: | | | | | | | | | | |
| Net income — Basic | | $ | 0.14 | | | $ | 0.16 | | | $ | 0.40 | | | $ | 0.36 | | | |
| Net income — Diluted | | | 0.13 | | | | 0.16 | | | | 0.40 | | | | 0.36 | | | |
| Cash dividends declared | | | 0.085 | | | | 0.085 | | | | 0.255 | | | | 0.255 | | | |
| Book value per share (end of period) | | | 8.80 | | | | 8.69 | | | | 8.80 | | | | 8.69 | | | |
| Tangible book value per share (end of period) (non-GAAP) | | | 6.57 | | | | 6.38 | | | | 6.57 | | | | 6.38 | | | |
| Stock price (end of period) | | | 9.40 | | | | 8.82 | | | | 9.40 | | | | 8.82 | | | |
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| (1) Calculated on a fully tax-equivalent basis. | | | | | | | | | | |
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| | At and for the Three Months Ended |
| | Sep 30, 2013 | | Jun 30, 2013 | | Mar 31, 2013 | | Dec 31, 2012 | | Sep 30, 2012 |
| | (Dollars in Thousands) |
| Balance Sheet: | | | | | | | | | | |
| Total assets | | $ | 5,236,229 | | | $ | 5,150,480 | | | $ | 5,110,378 | | | $ | 5,147,534 | | | $ | 5,061,444 | |
| Total loans and leases | | | 4,299,477 | | | | 4,205,015 | | | | 4,173,985 | | | | 4,175,712 | | | | 4,144,012 | |
| Total deposits | | | 3,737,978 | | | | 3,656,981 | | | | 3,626,033 | | | | 3,616,259 | | | | 3,568,016 | |
| Brookline Bancorp, Inc. stockholders’ equity | | | 614,811 | | | | 611,284 | | | | 614,039 | | | | 612,097 | | | | 605,962 | |
| | | | | | | | | | |
| Asset Quality: | | | | | | | | | | |
| Nonperforming assets | | $ | 16,738 | | | $ | 18,986 | | | $ | 22,941 | | | $ | 23,737 | | | $ | 23,675 | |
| Nonperforming assets as a percentage of total assets | | | 0.32 | % | | | 0.37 | % | | | 0.45 | % | | | 0.46 | % | | | 0.47 | % |
| Allowance for loan and lease losses | | $ | 46,390 | | | $ | 44,281 | | | $ | 42,532 | | | $ | 41,152 | | | $ | 38,913 | |
Allowance for loan and lease losses as a percentage of total loans and leases | | | 1.08 | % | | | 1.05 | % | | | 1.02 | % | | | 0.98 | % | | | 0.94 | % |
| Net loan and lease charge-offs | | $ | 621 | | | $ | 639 | | | $ | 419 | | | $ | 826 | | | $ | 1,539 | |
Net loan and lease charge-offs as a percentage of average loans and leases (annualized) | | | 0.06 | % | | | 0.06 | % | | | 0.04 | % | | | 0.08 | % | | | 0.15 | % |
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| Capital Ratios: | | | | | | | | | | |
| Stockholders’ equity to total assets | | | 11.74 | % | | | 11.87 | % | | | 12.02 | % | | | 11.89 | % | | | 11.97 | % |
Tangible stockholders’ equity to tangible assets (non-GAAP) | | | 9.03 | % | | | 9.10 | % | | | 9.20 | % | | | 9.08 | % | | | 9.08 | % |
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| BROOKLINE BANCORP, INC. AND SUBSIDIARIES |
| Consolidated Balance Sheets (Unaudited) |
| | | | | | | | | | |
| | September 30, | | June 30, | | March 31, | | December 31, | | September 30, |
| | | 2013 | | | | 2013 | | | | 2013 | | | | 2012 | | | | 2012 | |
| | (In Thousands Except Share Data) |
| ASSETS | | | | | | | | | | |
| Cash and due from banks | | $ | 37,220 | | | $ | 33,008 | | | $ | 39,330 | | | $ | 78,441 | | | $ | 41,617 | |
| Short-term investments | | | 58,195 | | | | 66,787 | | | | 52,766 | | | | 38,656 | | | | 34,655 | |
| Total cash and cash equivalents | | | 95,415 | | | | 99,795 | | | | 92,096 | | | | 117,097 | | | | 76,272 | |
| Investment securities available-for-sale | | | 480,402 | | | | 479,177 | | | | 486,625 | | | | 481,323 | | | | 466,822 | |
| Investment securities held-to-maturity | | | 500 | | | | 500 | | | | 500 | | | | 500 | | | | 500 | |
| Total investment securities | | | 480,902 | | | | 479,677 | | | | 487,125 | | | | 481,823 | | | | 467,322 | |
| Loans held-for-sale | | | 200 | | | | 4,221 | | | | 839 | | | | 3,233 | | | | 2,303 | |
| Loans and leases: | | | | | | | | | | |
| Commercial real estate loans: | | | | | | | | | | |
| Commercial real estate mortgage | | | 1,400,769 | | | | 1,349,051 | | | | 1,299,496 | | | | 1,301,233 | | | | 1,262,411 | |
| Multi-family mortgage | | | 599,601 | | | | 594,939 | | | | 585,669 | | | | 606,533 | | | | 628,162 | |
| Construction | | | 118,090 | | | | 112,684 | | | | 115,896 | | | | 98,197 | | | | 86,345 | |
| Total commercial real estate loans | | | 2,118,460 | | | | 2,056,674 | | | | 2,001,061 | | | | 2,005,963 | | | | 1,976,918 | |
| Commercial loans and leases: | | | | | | | | | | |
| Commercial | | | 409,376 | | | | 376,507 | | | | 399,781 | | | | 382,277 | | | | 346,744 | |
| Equipment financing | | | 513,345 | | | | 476,724 | | | | 448,701 | | | | 420,991 | | | | 426,597 | |
| Condominium association | | | 43,205 | | | | 41,859 | | | | 43,043 | | | | 44,187 | | | | 43,732 | |
| Total commercial loans and leases | | | 965,926 | | | | 895,090 | | | | 891,525 | | | | 847,455 | | | | 817,073 | |
| Indirect automobile loans | | | 440,949 | | | | 479,782 | | | | 510,954 | | | | 542,344 | | | | 574,279 | |
| Consumer loans: | | | | | | | | | | |
| Residential mortgage | | | 511,835 | | | | 507,099 | | | | 509,155 | | | | 511,109 | | | | 505,553 | |
| Home equity | | | 254,888 | | | | 257,839 | | | | 254,048 | | | | 261,562 | | | | 263,194 | |
| Other consumer | | | 7,419 | | | | 8,531 | | | | 7,242 | | | | 7,279 | | | | 6,995 | |
| Total consumer loans | | | 774,142 | | | | 773,469 | | | | 770,445 | | | | 779,950 | | | | 775,742 | |
| Total loans and leases | | | 4,299,477 | | | | 4,205,015 | | | | 4,173,985 | | | | 4,175,712 | | | | 4,144,012 | |
| Allowance for loan and lease losses | | | (46,390 | ) | | | (44,281 | ) | | | (42,532 | ) | | | (41,152 | ) | | | (38,913 | ) |
| Net loans and leases | | | 4,253,087 | | | | 4,160,734 | | | | 4,131,453 | | | | 4,134,560 | | | | 4,105,099 | |
| Restricted equity securities | | | 66,627 | | | | 66,627 | | | | 66,553 | | | | 68,661 | | | | 68,661 | |
| Premises and equipment, net | | | 79,504 | | | | 76,867 | | | | 74,223 | | | | 70,791 | | | | 66,814 | |
| Building held-for-sale | | | - | | | | - | | | | - | | | | - | | | | 6,046 | |
| Deferred tax asset | | | 34,322 | | | | 32,739 | | | | 29,123 | | | | 27,197 | | | | 27,354 | |
| Goodwill, net | | | 137,890 | | | | 137,890 | | | | 137,890 | | | | 137,890 | | | | 137,890 | |
| Identified intangible assets, net of accumulated amortization | | | 18,015 | | | | 19,168 | | | | 20,345 | | | | 21,510 | | | | 23,307 | |
| Other real estate owned and repossessed assets, net | | | 1,319 | | | | 1,493 | | | | 1,248 | | | | 1,491 | | | | 2,386 | |
| Other assets | | | 68,948 | | | | 71,269 | | | | 69,483 | | | | 83,281 | | | | 77,990 | |
| Total assets | | $ | 5,236,229 | | | $ | 5,150,480 | | | $ | 5,110,378 | | | $ | 5,147,534 | | | $ | 5,061,444 | |
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| LIABILITIES AND EQUITY | | | | | | | | | | |
| Deposits: | | | | | | | | | | |
| Non-interest-bearing deposits: | | | | | | | | | | |
| Demand checking accounts | | $ | 667,181 | | | $ | 644,507 | | | $ | 623,315 | | | $ | 623,274 | | | $ | 590,189 | |
| Interest-bearing deposits: | | | | | | | | | | |
| NOW accounts | | | 204,164 | | | | 196,778 | | | | 194,313 | | | | 212,858 | | | | 183,478 | |
| Savings accounts | | | 512,393 | | | | 503,170 | | | | 509,967 | | | | 515,367 | | | | 520,614 | |
| Money market accounts | | | 1,403,881 | | | | 1,340,024 | | | | 1,303,231 | | | | 1,253,819 | | | | 1,231,206 | |
| Certificate of deposit accounts | | | 950,359 | | | | 972,502 | | | | 995,207 | | | | 1,010,941 | | | | 1,042,529 | |
| Total interest-bearing deposits | | | 3,070,797 | | | | 3,012,474 | | | | 3,002,718 | | | | 2,992,985 | | | | 2,977,827 | |
| Total deposits | | | 3,737,978 | | | | 3,656,981 | | | | 3,626,033 | | | | 3,616,259 | | | | 3,568,016 | |
| Borrowed funds: | | | | | | | | | | |
| Advances from the FHLBB | | | 784,740 | | | | 785,565 | | | | 759,675 | | | | 790,865 | | | | 771,110 | |
| Other borrowed funds | | | 44,062 | | | | 44,501 | | | | 60,772 | | | | 63,104 | | | | 57,146 | |
| Total borrowed funds | | | 828,802 | | | | 830,066 | | | | 820,447 | | | | 853,969 | | | | 828,256 | |
| Mortgagors’ escrow accounts | | | 8,008 | | | | 7,465 | | | | 7,823 | | | | 6,946 | | | | 7,066 | |
| Accrued expenses and other liabilities | | | 42,820 | | | | 41,097 | | | | 38,825 | | | | 54,551 | | | | 47,889 | |
| Total liabilities | | | 4,617,608 | | | | 4,535,609 | | | | 4,493,128 | | | | 4,531,725 | | | | 4,451,227 | |
| | | | | | | | | | |
| Equity: | | | | | | | | | | |
| Brookline Bancorp, Inc. stockholders’ equity: | | | | | | | | | | |
| Common stock, $0.01 par value; 200,000,000 shares authorized; | | | | | | | | | | |
| 75,744,445 shares, 75,744,445 shares, 75,744,445 shares, | | | | | | | | | | |
| 75,749,825 shares, and 75,749,819 shares issued, respectively | | | 754 | | | | 754 | | | | 754 | | | | 754 | | | | 754 | |
| Additional paid-in capital | | | 616,971 | | | | 619,036 | | | | 618,711 | | | | 618,429 | | | | 618,176 | |
| Retained earnings, partially restricted | | | 63,210 | | | | 59,747 | | | | 56,211 | | | | 53,358 | | | | 47,451 | |
| Accumulated other comprehensive (loss) income | | | (4,900 | ) | | | (4,441 | ) | | | 2,233 | | | | 3,483 | | | | 3,569 | |
| Treasury stock, at cost; | | | | | | | | | | |
| 5,154,327 shares, 5,373,733 shares, 5,373,733 shares, | | | | | | | | | | |
| 5,373,733 shares, and 5,373,733 shares, respectively | | | (59,576 | ) | | | (62,107 | ) | | | (62,107 | ) | | | (62,107 | ) | | | (62,107 | ) |
| Unallocated common stock held by ESOP; | | | | | | | | | | |
| 302,229 shares, 312,792 shares, 323,355 shares, | | | | | | | | | | |
| 333,918 shares, and 344,991 shares, respectively | | | (1,648 | ) | | | (1,705 | ) | | | (1,763 | ) | | | (1,820 | ) | | | (1,881 | ) |
| Total Brookline Bancorp, Inc. stockholders’ equity | | | 614,811 | | | | 611,284 | | | | 614,039 | | | | 612,097 | | | | 605,962 | |
| Noncontrolling interest in subsidiary | | | 3,810 | | | | 3,587 | | | | 3,211 | | | | 3,712 | | | | 4,255 | |
| Total equity | | | 618,621 | | | | 614,871 | | | | 617,250 | | | | 615,809 | | | | 610,217 | |
| Total liabilities and equity | | $ | 5,236,229 | | | $ | 5,150,480 | | | $ | 5,110,378 | | | $ | 5,147,534 | | | $ | 5,061,444 | |
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| BROOKLINE BANCORP, INC. AND SUBSIDIARIES |
| Consolidated Statements of Income (Unaudited) |
| | | | | | | | |
| | Three Months Ended September 30, | | Nine Months Ended September 30, |
| | | 2013 | | | | 2012 | | | | 2013 | | | | 2012 | |
| | (In Thousands Except Share Data) |
| Interest and dividend income: | | | | | | | | |
| Loans and leases | | $ | 48,462 | | | $ | 53,271 | | | $ | 148,525 | | | $ | 153,049 | |
| Debt securities | | | 2,041 | | | | 1,949 | | | | 5,827 | | | | 6,719 | |
| Short-term investments | | | 22 | | | | 71 | | | | 72 | | | | 166 | |
| Marketable and restricted equity securities | | | 298 | | | | 103 | | | | 911 | | | | 291 | |
| Total interest and dividend income | | | 50,823 | | | | 55,394 | | | | 155,335 | | | | 160,225 | |
| | | | | | | | |
| Interest expense: | | | | | | | | |
| Deposits | | | 4,637 | | | | 5,375 | | | | 14,214 | | | | 16,355 | |
| Borrowed funds and subordinated debt | | | 2,774 | | | | 3,608 | | | | 8,677 | | | | 11,065 | |
| Total interest expense | | | 7,411 | | | | 8,983 | | | | 22,891 | | | | 27,420 | |
| | | | | | | | |
| Net interest income | | | 43,412 | | | | 46,411 | | | | 132,444 | | | | 132,805 | |
| Provision for credit losses | | | 2,748 | | | | 2,862 | | | | 7,042 | | | | 12,787 | |
| Net interest income after provision for credit losses | | | 40,664 | | | | 43,549 | | | | 125,402 | | | | 120,018 | |
| | | | | | | | |
| Non-interest income: | | | | | | | | |
| Fees, charges and other income | | | 4,011 | | | | 3,858 | | | | 11,412 | | | | 11,759 | |
| Loss from investments in affordable housing projects | | | (558 | ) | | | (73 | ) | | | (1,494 | ) | | | (455 | ) |
| Gain on sales of securities, net | | | - | | | | - | | | | - | | | | 797 | |
| Total non-interest income | | | 3,453 | | | | 3,785 | | | | 9,918 | | | | 12,101 | |
| | | | | | | | |
| Non-interest expense: | | | | | | | | |
| Compensation and employee benefits | | | 15,591 | | | | 14,664 | | | | 48,586 | | | | 43,590 | |
| Occupancy | | | 3,312 | | | | 2,673 | | | | 9,260 | | | | 7,852 | |
| Equipment and data processing | | | 4,061 | | | | 4,136 | | | | 12,423 | | | | 11,548 | |
| Professional services | | | 1,329 | | | | 1,932 | | | | 4,343 | | | | 10,939 | |
| FDIC insurance | | | 508 | | | | 973 | | | | 2,378 | | | | 3,123 | |
| Advertising and marketing | | | 758 | | | | 689 | | | | 2,196 | | | | 2,166 | |
| Amortization of identified intangible assets | | | 1,154 | | | | 1,271 | | | | 3,496 | | | | 3,825 | |
| Other | | | 2,840 | | | | 4,098 | | | | 8,458 | | | | 8,464 | |
| Total non-interest expense | | | 29,553 | | | | 30,436 | | | | 91,140 | | | | 91,507 | |
| | | | | | | | |
| Income before income taxes | | | 14,564 | | | | 16,898 | | | | 44,180 | | | | 40,612 | |
| Provision for income taxes | | | 4,645 | | | | 5,176 | | | | 15,156 | | | | 14,473 | |
| Net income before noncontrolling interest in subsidiary | | | 9,919 | | | | 11,722 | | | | 29,024 | | | | 26,139 | |
Less net income attributable to noncontrolling interest in subsidiary | | | 490 | | | | 321 | | | | 1,292 | | | | 860 | |
| Net income attributable to Brookline Bancorp, Inc. | | $ | 9,429 | | | $ | 11,401 | | | $ | 27,732 | | | $ | 25,279 | |
| | | | | | | | |
| Earnings per common share: | | | | | | | | |
| Basic | | $ | 0.14 | | | $ | 0.16 | | | $ | 0.40 | | | $ | 0.36 | |
| Diluted | | $ | 0.13 | | | | 0.16 | | | | 0.40 | | | | 0.36 | |
| | | | | | | | |
| Weighted average common shares outstanding during the period: | | | | | | | | |
| Basic | | | 69,830,953 | | | | 69,716,283 | | | | 69,789,737 | | | | 69,682,741 | |
| Diluted | | | 69,913,765 | | | | 69,754,473 | | | | 69,860,722 | | | | 69,718,072 | |
| | | | | | | | |
| Dividends declared per common share | | $ | 0.085 | | | $ | 0.085 | | | $ | 0.255 | | | $ | 0.255 | |
| | | | | | | | |
| | | | | | | | |
| * 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 and for the Three Months Ended |
| | Sep 30, 2013 | | Jun 30, 2013 | | Mar 31, 2013 | | Dec 31, 2012 | | Sep 30, 2012 |
| | (Dollars in Thousands) |
| NONPERFORMING ASSETS: | | | | | | | | | | |
| | | | | | | | | | |
| Loans and leases accounted for on a nonaccrual basis: | | | | | | | | | | |
| Commercial real estate mortgage | | $ | 1,137 | | | $ | 2,682 | | | $ | 3,970 | | | $ | 4,014 | | | $ | 3,610 | |
| Multi-family mortgage | | | 664 | | | | 1,593 | | | | 4,132 | | | | 4,233 | | | | 5,157 | |
| Construction | | | - | | | | - | | | | - | | | | - | | | | - | |
| Total commercial real estate loans | | | 1,801 | | | | 4,275 | | | | 8,102 | | | | 8,247 | | | | 8,767 | |
| | | | | | | | | | |
| Commercial | | | 4,747 | | | | 4,680 | | | | 5,035 | | | | 5,454 | | | | 5,432 | |
| Equipment financing | | | 4,116 | | | | 4,014 | | | | 3,595 | | | | 3,873 | | | | 3,040 | |
| Condominium association | | | 3 | | | | 4 | | | | 6 | | | | 8 | | | | 9 | |
| Total commercial loans and leases | | | 8,866 | | | | 8,698 | | | | 8,636 | | | | 9,335 | | | | 8,481 | |
| | | | | | | | | | |
| Indirect automobile loans | | | 195 | | | | 156 | | | | 62 | | | | 99 | | | | 80 | |
| | | | | | | | | | |
| Residential mortgage | | | 2,738 | | | | 2,786 | | | | 3,724 | | | | 3,804 | | | | 2,924 | |
| Home equity | | | 1,801 | | | | 1,557 | | | | 1,150 | | | | 716 | | | | 988 | |
| Other consumer | | | 18 | | | | 21 | | | | 19 | | | | 45 | | | | 49 | |
| Total consumer loans | | | 4,557 | | | | 4,364 | | | | 4,893 | | | | 4,565 | | | | 3,961 | |
| | | | | | | | | | |
| Total nonaccrual loans and leases | | | 15,419 | | | | 17,493 | | | | 21,693 | | | | 22,246 | | | | 21,289 | |
| | | | | | | | | | |
| Other real estate owned | | | 726 | | | | 1,002 | | | | 943 | | | | 903 | | | | 1,690 | |
| Other repossessed assets | | | 593 | | | | 491 | | | | 305 | | | | 588 | | | | 696 | |
| | | | | | | | | | |
| Total nonperforming assets | | $ | 16,738 | | | $ | 18,986 | | | $ | 22,941 | | | $ | 23,737 | | | $ | 23,675 | |
| | | | | | | | | | |
| | | | | | | | | | |
| Troubled debt restructurings on accrual | | | 12,158 | | | | 9,631 | | | | 9,816 | | | | 10,414 | | | | 9,232 | |
| Troubled debt restructurings on nonaccrual | | | 5,905 | | | | 6,919 | | | | 7,514 | | | | 6,786 | | | | 3,821 | |
| Total troubled debt restructurings | | $ | 18,063 | | | $ | 16,550 | | | $ | 17,330 | | | $ | 17,200 | | | $ | 13,053 | |
| | | | | | | | | | |
| | | | | | | | | | |
| Nonperforming loans and leases as a percentage of total loans and leases | | | 0.36 | % | | | 0.42 | % | | | 0.52 | % | | | 0.53 | % | | | 0.51 | % |
| Nonperforming assets as a percentage of total assets | | | 0.32 | % | | | 0.37 | % | | | 0.45 | % | | | 0.46 | % | | | 0.47 | % |
| | | | | | | | | | |
| | | | | | | | | | |
| PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES: | | | | | | | | | | |
| | | | | | | | | | |
| Allowance for loan and lease losses at beginning of period | | $ | 44,281 | | | $ | 42,532 | | | $ | 41,152 | | | $ | 38,913 | | | $ | 37,431 | |
| Charge-offs | | | (903 | ) | | | (1,028 | ) | | | (661 | ) | | | (1,527 | ) | | | (1,807 | ) |
| Recoveries | | | 282 | | | | 389 | | | | 242 | | | | 701 | | | | 268 | |
| Net charge-offs | | | (621 | ) | | | (639 | ) | | | (419 | ) | | | (826 | ) | | | (1,539 | ) |
| Provision for loan and lease losses | | | 2,730 | | | | 2,388 | | | | 1,799 | | | | 3,065 | | | | 3,021 | |
| Allowance for loan and lease losses at end of period | | $ | 46,390 | | | $ | 44,281 | | | $ | 42,532 | | | $ | 41,152 | | | $ | 38,913 | |
| | | | | | | | | | |
Allowance for loan and lease losses as a percentage of total loans and leases | | | 1.08 | % | | | 1.05 | % | | | 1.02 | % | | | 0.98 | % | | | 0.94 | % |
Allowance for loan and lease losses related to originated loans and leases as a percentage of originated loans and leases | | | 1.31 | % | | | 1.34 | % | | | 1.34 | % | | | 1.33 | % | | | 1.31 | % |
| | | | | | | | | | |
| NET CHARGE-OFFS: | | | | | | | | | | |
| | | | | | | | | | |
| Commercial real estate loans | | $ | 7 | | | $ | 81 | | | $ | (4 | ) | | $ | - | | | $ | (38 | ) |
| Commercial loans and leases | | | 157 | | | | 295 | | | | 166 | | | | 196 | | | | 1,179 | |
| Indirect automobile loans | | | 396 | | | | 170 | | | | 231 | | | | 366 | | | | 301 | |
| Consumer loans | | | 61 | | | | 93 | | | | 26 | | | | 264 | | | | 97 | |
| Total net charge-offs | | $ | 621 | | | $ | 639 | | | $ | 419 | | | $ | 826 | | | $ | 1,539 | |
| | | | | | | | | | |
Net loan and lease charge-offs as a percentage of average loans and leases (annualized) | | | 0.06 | % | | | 0.06 | % | | | 0.04 | % | | | 0.08 | % | | | 0.15 | % |
| | | | | | | | | | | | | | | | | | | | |
| |
| BROOKLINE BANCORP, INC. AND SUBSIDIARIES |
| Average Yields / Costs (Unaudited) |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | Three Months Ended |
| | September 30, 2013 | | June 30, 2013 | | September 30, 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 | | $ | 69,272 | | | $ | 22 | | 0.13 | % | | $ | 52,541 | | | $ | 19 | | 0.14 | % | | $ | 103,614 | | | $ | 71 | | 0.27 | % |
| Debt securities (2) | | | 475,506 | | | | 2,047 | | 1.72 | % | | | 487,271 | | | | 1,940 | | 1.59 | % | | | 412,439 | | | | 1,955 | | 1.90 | % |
| Marketable and restricted equity securities (2) | | | 66,995 | | | | 346 | | 2.06 | % | | | 66,988 | | | | 350 | | 2.10 | % | | | 62,121 | | | | 110 | | 0.72 | % |
| Total investments | | | 611,773 | | | | 2,415 | | 1.58 | % | | | 606,800 | | | | 2,309 | | 1.52 | % | | | 578,174 | | | | 2,136 | | 1.48 | % |
| Commercial real estate loans (3) | | | 2,088,450 | | | | 24,021 | | 4.56 | % | | | 2,034,920 | | | | 23,863 | | 4.67 | % | | | 1,944,222 | | | | 23,648 | | 4.89 | % |
| Commercial loans (3) | | | 442,052 | | | | 4,493 | | 3.99 | % | | | 420,194 | | | | 6,531 | | 6.16 | % | | | 378,822 | | | | 6,869 | | 7.23 | % |
| Equipment financing (3) | | | 489,127 | | | | 8,343 | | 6.79 | % | | | 467,156 | | | | 8,279 | | 7.10 | % | | | 406,423 | | | | 7,816 | | 7.69 | % |
| Indirect automobile loans (3) | | | 460,927 | | | | 4,172 | | 3.59 | % | | | 494,571 | | | | 4,523 | | 3.67 | % | | | 577,119 | | | | 5,852 | | 4.03 | % |
| Residential mortgage loans (3) | | | 507,616 | | | | 4,866 | | 3.81 | % | | | 512,975 | | | | 5,101 | | 3.98 | % | | | 506,701 | | | | 5,686 | | 4.49 | % |
| Other consumer loans (3) | | | 262,442 | | | | 2,762 | | 4.17 | % | | | 264,183 | | | | 2,508 | | 3.81 | % | | | 269,915 | | | | 3,544 | | 5.22 | % |
| Total loans and leases | | | 4,250,614 | | | | 48,657 | | 4.54 | % | | | 4,193,999 | | | | 50,805 | | 4.83 | % | | | 4,083,202 | | | | 53,415 | | 5.24 | % |
| Total interest-earning assets | | | 4,862,387 | | | | 51,072 | | 4.16 | % | | | 4,800,799 | | | | 53,114 | | 4.41 | % | | | 4,661,376 | | | | 55,551 | | 4.77 | % |
| Allowance for loan and lease losses | | | (44,959 | ) | | | | | | | (42,954 | ) | | | | | | | (40,510 | ) | | | | |
| Non-interest-earning assets | | | 382,155 | | | | | | | | 380,299 | | | | | | | | 424,892 | | | | | |
| Total assets | | $ | 5,199,583 | | | | | | | $ | 5,138,144 | | | | | | | $ | 5,045,758 | | | | | |
| | | | | | | | | | | | | | | | | | |
| Liabilities and Stockholders' Equity: | | | | | | | | | | | | | | | | | | |
| Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | |
| Interest-bearing deposits: | | | | | | | | | | | | | | | | | | |
| NOW accounts | | $ | 198,643 | | | $ | 42 | | 0.08 | % | | $ | 195,269 | | | $ | 41 | | 0.09 | % | | $ | 181,891 | | | $ | 51 | | 0.11 | % |
| Savings accounts | | | 512,205 | | | | 315 | | 0.24 | % | | | 508,451 | | | | 316 | | 0.25 | % | | | 517,068 | | | | 410 | | 0.32 | % |
| Money market accounts | | | 1,377,495 | | | | 2,040 | | 0.59 | % | | | 1,335,300 | | | | 2,036 | | 0.61 | % | | | 1,239,230 | | | | 2,246 | | 0.72 | % |
| Certificates of deposit | | | 957,494 | | | | 2,240 | | 0.93 | % | | | 982,257 | | | | 2,350 | | 0.96 | % | | | 1,049,390 | | | | 2,668 | | 1.01 | % |
| Total interest-bearing deposits | | | 3,045,837 | | | | 4,637 | | 0.60 | % | | | 3,021,277 | | | | 4,743 | | 0.63 | % | | | 2,987,579 | | | | 5,375 | | 0.72 | % |
| Advances from the FHLBB | | | 772,067 | | | | 2,666 | | 1.37 | % | | | 760,237 | | | | 2,682 | | 1.41 | % | | | 757,017 | | | | 3,408 | | 1.79 | % |
| Other borrowed funds | | | 44,326 | | | | 108 | | 0.96 | % | | | 48,655 | | | | 112 | | 0.93 | % | | | 57,753 | | | | 200 | | 1.38 | % |
| Total interest-bearing liabilities | | | 3,862,230 | | | | 7,411 | | 0.76 | % | | | 3,830,169 | | | | 7,537 | | 0.79 | % | | | 3,802,349 | | | | 8,983 | | 0.94 | % |
| Non-interest-bearing liabilities: | | | | | | | | | | | | | | | | | | |
| Demand checking accounts | | | 675,907 | | | | | | | | 640,725 | | | | | | | | 572,305 | | | | | |
| Other non-interest-bearing liabilities | | | 44,832 | | | | | | | | 47,589 | | | | | | | | 59,429 | | | | | |
| Total liabilities | | | 4,582,969 | | | | | | | | 4,518,483 | | | | | | | | 4,434,083 | | | | | |
| Brookline Bancorp, Inc. stockholders’ equity | | | 612,866 | | | | | | | | 616,327 | | | | | | | | 605,988 | | | | | |
| Noncontrolling interest in subsidiary | | | 3,748 | | | | | | | | 3,334 | | | | | | | | 5,687 | | | | | |
| Total liabilities and equity | | $ | 5,199,583 | | | | | | | $ | 5,138,144 | | | | | | | $ | 5,045,758 | | | | | |
| Net interest income (tax-equivalent basis) / | | | | | | | | | | | | | | | | | | |
| Interest-rate spread (4) | | | | | 43,661 | | 3.40 | % | | | | | 45,577 | | 3.62 | % | | | | | 46,568 | | 3.83 | % |
| Less adjustment of tax-exempt income | | | | | 249 | | | | | | | 214 | | | | | | | 157 | | |
| Net interest income | | | | $ | 43,412 | | | | | | $ | 45,363 | | | | | | $ | 46,411 | | |
| Net interest margin (5) | | | | | | 3.56 | % | | | | | | 3.78 | % | | | | | | 4.00 | % |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
|
(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. 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, 2013 | | September 30, 2012 |
| | Average
Balance | | Interest (1) | | Average
Yield/Cost | | Average
Balance | | Interest (1) | | Average Yield/Cost |
| | (Dollars in Thousands) |
| Assets: | | | | | | | | | | | | |
| Interest-earning assets: | | | | | | | | | | | | |
| Short-term investments | | $ | 58,872 | | | $ | 72 | | 0.16 | % | | $ | 98,781 | | | $ | 166 | | 0.23 | % |
| Debt securities (2) | | | 478,110 | | | | 5,841 | | 1.63 | % | | | 445,012 | | | | 6,741 | | 2.02 | % |
| Marketable and restricted equity securities (2) | | | 67,506 | | | | 1,056 | | 2.09 | % | | | 57,225 | | | | 329 | | 0.77 | % |
| Total investments | | | 604,488 | | | | 6,969 | | 1.54 | % | | | 601,018 | | | | 7,236 | | 1.61 | % |
| Commercial real estate loans (3) | | | 2,041,834 | | | | 72,190 | | 4.69 | % | | | 1,889,996 | | | | 70,723 | | 5.01 | % |
| Commercial loans (3) | | | 424,904 | | | | 15,796 | | 4.91 | % | | | 360,453 | | | | 16,170 | | 5.99 | % |
| Equipment financing (3) | | | 465,217 | | | | 24,418 | | 7.01 | % | | | 384,453 | | | | 22,000 | | 7.63 | % |
| Indirect automobile loans (3) | | | 493,898 | | | | 13,611 | | 3.68 | % | | | 577,857 | | | | 18,132 | | 4.19 | % |
| Residential mortgage loans (3) | | | 509,728 | | | | 15,132 | | 3.97 | % | | | 498,929 | | | | 16,675 | | 4.46 | % |
| Other consumer loans (3) | | | 263,762 | | | | 7,886 | | 4.00 | % | | | 269,473 | | | | 9,587 | | 4.75 | % |
| Total loans and leases | | | 4,199,343 | | | | 149,033 | | 4.72 | % | | | 3,981,161 | | | | 153,287 | | 5.15 | % |
| Total interest-earning assets | | | 4,803,831 | | | | 156,002 | | 4.32 | % | | | 4,582,179 | | | | 160,523 | | 4.68 | % |
| Allowance for loan and lease losses | | | (43,146 | ) | | | | | | | (34,914 | ) | | | | |
| Non-interest-earning assets | | | 375,074 | | | | | | | | 405,524 | | | | | |
| Total assets | | $ | 5,135,759 | | | | | | | $ | 4,952,789 | | | | | |
| | | | | | | | | | | | |
| Liabilities and Stockholders' Equity: | | | | | | | | | | | | |
| Interest-bearing liabilities: | | | | | | | | | | | | |
| Interest-bearing deposits: | | | | | | | | | | | | |
| NOW accounts | | $ | 194,775 | | | $ | 128 | | 0.09 | % | | $ | 182,441 | | | $ | 162 | | 0.12 | % |
| Savings accounts | | | 511,672 | | | | 975 | | 0.25 | % | | | 517,168 | | | | 1,351 | | 0.35 | % |
| Money market accounts | | | 1,336,093 | | | | 6,136 | | 0.61 | % | | | 1,188,551 | | | | 6,658 | | 0.75 | % |
| Certificates of deposit | | | 980,628 | | | | 6,975 | | 0.95 | % | | | 1,064,431 | | | | 8,184 | | 1.03 | % |
| Total interest-bearing deposits | | | 3,023,168 | | | | 14,214 | | 0.63 | % | | | 2,952,591 | | | | 16,355 | | 0.74 | % |
| Advances from the FHLBB | | | 761,927 | | | | 8,303 | | 1.46 | % | | | 723,934 | | | | 10,502 | | 1.94 | % |
| Other borrowed funds | | | 50,941 | | | | 374 | | 0.98 | % | | | 59,344 | | | | 563 | | 1.27 | % |
| Total interest-bearing liabilities | | | 3,836,036 | | | | 22,891 | | 0.80 | % | | | 3,735,869 | | | | 27,420 | | 0.98 | % |
| Non-interest-bearing liabilities: | | | | | | | | | | | | |
| Demand checking accounts | | | 641,749 | | | | | | | | 545,109 | | | | | |
| Other non-interest-bearing liabilities | | | 38,811 | | | | | | | | 67,793 | | | | | |
| Total liabilities | | | 4,516,596 | | | | | | | | 4,348,771 | | | | | |
| Brookline Bancorp, Inc. stockholders’ equity | | | 615,519 | | | | | | | | 598,292 | | | | | |
| Noncontrolling interest in subsidiary | | | 3,644 | | | | | | | | 5,726 | | | | | |
| Total liabilities and equity | | $ | 5,135,759 | | | | | | | $ | 4,952,789 | | | | | |
| Net interest income (tax-equivalent basis) / | | | | | | | | | | | | |
| Interest-rate spread (4) | | | | | 133,111 | | 3.52 | % | | | | | 133,103 | | 3.70 | % |
| Less adjustment of tax-exempt income | | | | | 667 | | | | | | | 298 | | |
| Net interest income | | | | $ | 132,444 | | | | | | $ | 132,805 | | |
| Net interest margin (5) | | | | | | 3.68 | % | | | | | | 3.88 | % |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
|
|
|
|
| |
(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. 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) |
| | | | | | | | | | |
| | | | Three Months Ended September 30, | | Nine Months Ended September 30, |
| | | | | 2013 | | | | 2012 | | | | 2013 | | | | 2012 | |
| Reconciliation Table - Non-GAAP Financial Information | | | | (Dollars in Thousands Except Share Data) |
| | | | | | | | | | |
| Net income attributable to Brookline Bancorp, Inc. | | | | $ | 9,429 | | | $ | 11,401 | | | $ | 27,732 | | | $ | 25,279 | |
| Add: | | | | | | | | | | |
| Acquisition-related expenses (after-tax) | | | | | - | | | | - | | | | - | | | | 3,972 | |
| Net earnings from operations | | | | $ | 9,429 | | | $ | 11,401 | | | $ | 27,732 | | | $ | 29,251 | |
| | | | | | | | | | |
| Operating earnings per common share: | | | | | | | | | | |
| Basic | | | | $ | 0.14 | | | $ | 0.16 | | | $ | 0.40 | | | $ | 0.42 | |
| Diluted | | | | | 0.13 | | | | 0.16 | | | | 0.40 | | | | 0.42 | |
| | | | | | | | | | |
| Weighted average common shares outstanding during the period: | | | | | | | | | | |
| Basic | | | | | 69,830,953 | | | | 69,716,283 | | | | 69,789,737 | | | | 69,682,741 | |
| Diluted | | | | | 69,913,765 | | | | 69,754,473 | | | | 69,860,722 | | | | 69,718,072 | |
| | | | | | | | | | |
| | | | | | | | | | |
| | Sep 30, 2013 | | Jun 30, 2013 | | Mar 31, 2013 | | Dec 31, 2012 | | Sep 30, 2012 |
| | (Dollars in Thousands) |
| | | | | | | | | | |
| Brookline Bancorp, Inc. stockholders’ equity | | $ | 614,811 | | | $ | 611,284 | | | $ | 614,039 | | | $ | 612,097 | | | $ | 605,962 | |
| Less: | | | | | | | | | | |
| Goodwill | | | 137,890 | | | | 137,890 | | | | 137,890 | | | | 137,890 | | | | 137,890 | |
| Identified intangible assets | | | 18,015 | | | | 19,168 | | | | 20,345 | | | | 21,510 | | | | 23,307 | |
| Tangible stockholders' equity | | $ | 458,906 | | | $ | 454,226 | | | $ | 455,804 | | | $ | 452,697 | | | $ | 444,765 | |
| | | | | | | | | | |
| Total assets | | $ | 5,236,229 | | | $ | 5,150,480 | | | $ | 5,110,378 | | | $ | 5,147,534 | | | $ | 5,061,444 | |
| Less: | | | | | | | | | | |
| Goodwill | | | 137,890 | | | | 137,890 | | | | 137,890 | | | | 137,890 | | | | 137,890 | |
| Identified intangible assets | | | 18,015 | | | | 19,168 | | | | 20,345 | | | | 21,510 | | | | 23,307 | |
| Tangible assets | | $ | 5,080,324 | | | $ | 4,993,422 | | | $ | 4,952,143 | | | $ | 4,988,134 | | | $ | 4,900,247 | |
| | | | | | | | | | |
| Tangible stockholders’ equity to tangible assets | | | 9.03 | % | | | 9.10 | % | | | 9.20 | % | | | 9.08 | % | | | 9.08 | % |
| | | | | | | | | | |
| | | | | | | | | | |
| | Sep 30, 2013 | | Jun 30, 2013 | | Mar 31, 2013 | | Dec 31, 2012 | | Sep 30, 2012 |
| | (Dollars in Thousands) |
| | | | | | | | | | |
| Tangible stockholders' equity | | $ | 458,906 | | | $ | 454,226 | | | $ | 455,804 | | | $ | 452,697 | | | $ | 444,765 | |
| | | | | | | | | | |
| Number of common shares issued | | | 75,744,445 | | | | 75,744,445 | | | | 75,744,445 | | | | 75,749,825 | | | | 75,749,819 | |
| Less: | | | | | | | | | | |
| Treasury shares | | | 5,154,327 | | | | 5,373,733 | | | | 5,373,733 | | | | 5,373,733 | | | | 5,373,733 | |
| Unallocated ESOP shares | | | 302,229 | | | | 312,792 | | | | 323,355 | | | | 333,918 | | | | 344,991 | |
| Unvested restricted stocks | | | 429,818 | | | | 276,011 | | | | 277,510 | | | | 295,055 | | | | 295,055 | |
| Number of common shares outstanding | | | 69,858,071 | | | | 69,781,909 | | | | 69,769,847 | | | | 69,747,119 | | | | 69,736,040 | |
| | | | | | | | | | |
| Tangible book value per common share | | $ | 6.57 | | | $ | 6.51 | | | $ | 6.53 | | | $ | 6.49 | | | $ | 6.38 | |
| | | | | | | | | | |
| | | | | | | | | | |
| | Sep 30, 2013 | | Jun 30, 2013 | | Mar 31, 2013 | | Dec 31, 2012 | | Sep 30, 2012 |
| | (Dollars in Thousands) |
| | | | | | | | | | |
| Allowance for loan and lease losses | | $ | 46,390 | | | $ | 44,281 | | | $ | 42,532 | | | $ | 41,152 | | | $ | 38,913 | |
| Less: | | | | | | | | | | |
| Allowance for acquired loans and leases losses | | | 1,278 | | | | 620 | | | | - | | | | - | | | | - | |
| Allowance for originated loan and lease losses | | $ | 45,112 | | | $ | 43,661 | | | $ | 42,532 | | | $ | 41,152 | | | $ | 38,913 | |
| | | | | | | | | | |
| Total loans and leases | | $ | 4,299,477 | | | $ | 4,205,015 | | | $ | 4,173,985 | | | $ | 4,175,712 | | | $ | 4,144,012 | |
| Less: | | | | | | | | | | |
| Total acquired loans and leases | | | 865,708 | | | | 938,815 | | | | 997,988 | | | | 1,059,610 | | | | 1,149,585 | |
| Total originated loans and leases | | $ | 3,433,769 | | | $ | 3,266,200 | | | $ | 3,175,997 | | | $ | 3,116,102 | | | $ | 2,994,427 | |
| | | | | | | | | | |
| Allowance for loan and lease losses related to | | | | | | | | | | |
| originated loans and leases as a percentage | | | | | | | | | | |
| of originated loans and leases | | | 1.31 | % | | | 1.34 | % | | | 1.34 | % | | | 1.33 | % | | | 1.31 | % |
CONTACT:
Brookline Bancorp, Inc.
Julie A. Gerschick, 617-425-5331
Chief Financial Officer and Treasurer
jgerschick@brkl.com
