Exhibit 99.1
Brookline Bancorp Announces Fourth Quarter Net Income of $7.7 Million, EPS of $0.11
BOSTON--(BUSINESS WIRE)--January 29, 2014--Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced net income of $7.7 million, or $0.11 per basic share and diluted share, for the fourth quarter of 2013, compared to $9.4 million, or $0.14 per basic and $0.13 per diluted share, for the third quarter of 2013, and $11.9 million, or $0.17 per basic and diluted share, for the fourth quarter of 2012.
For the year ended December 31, 2013, net income totaled $35.4 million, or $0.51 per basic and diluted share, compared to $37.1 million, or $0.53 per basic and diluted share, for 2012. Net earnings from operations were $36.0 million, or $0.52 per basic and $0.51 per diluted share, for the year ended December 31, 2013, compared to $41.1 million, or $0.59 per basic and diluted share, for 2012. The Company’s 2013 fourth quarter results include a charge of $0.9 million, or $0.01 per basic and diluted share, due to compensation-related expenses incurred upon the departure of the Company’s Chief Financial Officer.
Paul Perrault, President and Chief Executive Officer of Brookline Bancorp, Inc., stated: “We are pleased with the solid commercial loan and core deposit growth in 2013. We have experienced uneven results as we conclude our transition to a commercial bank and remain challenged by the historically low interest rate environment. With much of the transition work behind us, our strong balance sheet, expanding branch network, and new business initiatives position us well for 2014.”
BALANCE SHEET
Total assets increased $88.9 million during the fourth quarter of 2013 to $5.3 billion at December 31, 2013, and increased $177.6 million from $5.1 billion at December 31, 2012. The growth in total assets during the fourth quarter of 2013 is primarily driven by loans and leases, which increased $63.0 million to $4.4 billion at December 31, 2013, representing 5.9 percent growth on an annualized basis. At December 31, 2013, the commercial real estate and commercial loan and lease portfolios totaled $3.2 billion, or 72.7 percent of total loans and leases, as compared to $3.1 billion, or 71.7 percent at September 30, 2013, and $2.9 billion, or 68.3 percent at December 31, 2012. Strong loan growth continued in our total commercial loan and lease portfolio, which increased $84.8 million during the fourth quarter of 2013, or 11 percent on an annualized basis. This growth offsets the decrease of $40.4 million in the indirect automobile loan portfolio during the same period.
Cash, cash equivalents, and investment securities increased $9.1 million quarter-to-quarter and were down $13.5 million year-to-year to $585.4 million, or 11.0 percent of total assets at December 31, 2013, as compared to $576.3 million, or 11.0 percent of total assets at September 30, 2013, and $598.9 million, or 11.6 percent of total assets at December 31, 2012.
Deposits of $3.8 billion at December 31, 2013 were up $97.0 million from September 30, 2013 and up $218.7 million from December 31, 2012. The growth from September 30, 2013 represents an annualized increase of 10.4 percent. Core deposits, which consist of demand checking, NOW, savings, and money market accounts, increased at a 16.2 percent annualized rate in the fourth quarter of 2013, raising the core deposit ratio from 74.6 percent at September 30, 2013 to 75.6 percent at December 31, 2013. Total borrowings at December 31, 2013 decreased by $16.3 million as compared to September 30, 2013, and decreased by $41.4 million as compared to December 31, 2012.
The ratio of stockholders’ equity to total assets was 11.53 percent at December 31, 2013, as compared to 11.74 percent at September 30, 2013. The ratio of tangible stockholders’ equity to tangible assets was 8.88 percent at December 31, 2013, as compared to 9.03 percent at September 30, 2013.
NET INTEREST INCOME
Net interest income for the fourth quarter of 2013 increased $0.4 million to $43.8 million from $43.4 million for the third quarter of 2013, largely as a result of a $0.2 million increase in income from loan and leases and debt securities. The net interest income for the year ended December 31, 2013 decreased $1.2 million to $176.2 million from $177.4 million for the year ended December 31, 2012.
Net interest margin decreased slightly from 3.56 percent for the three months ended September 30, 2013 to 3.54 percent for the three months ended December 31, 2013. Similarly, net interest margin decreased to 3.64 percent for the year ended December 31, 2013 from 3.85 percent for the year ended December 31, 2012.
NON-INTEREST INCOME
Non-interest income for the fourth quarter of 2013 increased $0.4 million to $3.9 million from $3.5 million for the third quarter of 2013. The quarter-to-quarter increase is largely a result of a $0.2 million reduction in loan related gains on sale and other fee income, a $0.4 million gain on sales of securities, and a $0.2 million decrease in losses on investments in affordable housing projects.
Non-interest income for the year ended December 31, 2013 decreased $4.8 million to $13.8 million from $18.6 million for the year ended December 31, 2012. Several factors contributed to the year-to-year decrease, including a decrease of $1.2 million in loan-related gains on sale and other fee income, an increase of $1.1 million in losses from investments in affordable housing projects, a decrease of $0.5 million in gains related to the sale of securities, and the inclusion in 2012 of a net gain of $1.9 million on the sale of loans and leases.
NON-INTEREST EXPENSE
Non-interest expense for the fourth quarter of 2013 increased $1.8 million to $31.3 million from $29.6 million for the third quarter of 2013. The quarter-to-quarter increase in non-interest expense includes an increase of $1.1 million in compensation and employee benefit expense, mostly due to certain compensation related expenses incurred as a result of the departure of the Company’s Chief Financial Officer. Additionally, equipment and data processing expense increased $0.4 million due, in part, to system conversion related expenses.
Non-interest expense for the year ended December 31, 2013 increased $2.1 million to $122.5 million from $120.4 million for the year ended December 31, 2012. The year-over-year increase in non-interest expense includes an increase of $6.4 million in compensation and employee benefit expense due, in part, to additional staffing. Additionally, occupancy, equipment and data processing expense increased $4.1 million due, in part, to branch expansion and relocation expenses, system conversion related expenses and increased volume. These increases were offset by a decrease of $6.8 million in professional services expense.
RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY
The return on average assets decreased during the fourth quarter of 2013 from 0.73 percent at September 30, 2013 to 0.58 percent at December 31, 2013. For the year ended December 31, 2013, the return on average assets decreased to 0.68 percent from 0.74 percent for the year ended December 31, 2012.
The return on average tangible stockholders’ equity decreased to 6.61 percent for the fourth quarter of 2013 from 8.27 percent for the third quarter of 2013. The return on average tangible stockholders’ equity decreased to 7.71 percent for the year ended December 31, 2013 from 8.40 percent for the year ended December 31, 2012.
ASSET QUALITY
Nonperforming loans and leases increased $1.1 million to $16.5 million, or 0.31 percent of total assets, at December 31, 2013 from $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 increased to 0.38 percent at December 31, 2013 from 0.36 percent at September 30, 2013. Nonperforming assets also increased $1.4 million to $18.1 million or 0.34 percent of total assets at December 31, 2013, from $16.7 million, or 0.32 percent of total assets, at September 30, 2013.
The provision for loan and lease losses increased to $3.8 million for the fourth quarter of 2013, from $2.7 million for the third quarter of 2013. The fourth quarter provision consisted mainly of a $1.7 million provision due to overall portfolio growth, a $0.9 million provision for charged off loans, and $1.1 million for deterioration and charge offs in the acquired loan portfolios. The provision for loan and lease losses decreased to $10.9 million for the year ended December 31, 2013 from $15.9 million for the year ended December 31, 2012, primarily due to lower charge offs.
The allowance for loan and lease losses was $48.5 million at December 31, 2013, compared to $46.4 million at September 30, 2013, and $41.2 million at December 31, 2012. The allowance for loan and lease losses as a percent of total loans and leases was 1.11 percent at December 31, 2013, compared to 1.08 percent at September, 30, 2013, and 0.99 percent at December 31, 2012. The allowance for loan and lease losses related to originated loans and leases as a percent of originated loans and leases increased slightly to 1.32 percent at December 31, 2013, from 1.31 percent at September 30, 2013.
DIVIDEND DECLARED
The Company’s Board of Directors approved, for the 47th consecutive quarter, a dividend of $0.085 per share. The dividend will be paid on February 28, 2014 to shareholders of record on February 14, 2014.
CONFERENCE CALL
The Company will conduct a conference call/webcast at 1:30 PM Eastern Standard Time on Thursday, January 30, 2014 to discuss the results for the quarter, business highlights and outlook. The call can be accessed by dialing 888-317-6016 (United States) or 412-317-6016 (internationally). A recorded playback of the call will be available for one week following the call at 877-344-7529 (United States) or 412-317-0088 (internationally). The passcode for the playback is 10039039. 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 $5.3 billion in assets and branch locations throughout Massachusetts and Rhode Island, is headquartered in Boston, Massachusetts and operates as the holding company for Brookline Bank, Bank Rhode Island, and First Ipswich Bank. The Company provides commercial and retail banking services and cash management and investment services to customers throughout Central New England. More information about Brookline Bancorp, Inc. and its banks can be found at the following websites: www.brooklinebank.com, www.bankri.com, and www.firstipswich.com.
FORWARD-LOOKING STATEMENTS
Certain statements contained in this press release that are not historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties. The Company’s actual results could differ materially from those projected in the forward-looking statements as a result of, among others, the risks outlined in the Company’s Annual Report on Form 10-K, as updated by its Quarterly Reports on Form 10-Q and other filings submitted to the Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.
BASIS OF PRESENTATION
The Company's consolidated financial statements have been prepared in conformity with generally accepted accounting principles (“GAAP”) as set forth by the FASB in its Accounting Standards Codification and through the rules and interpretive releases of the SEC under the authority of federal securities laws. Certain amounts previously reported have been reclassified to conform to the current period's presentation.
NON-GAAP FINANCIAL MEASURES
The Company uses certain non-GAAP financial measures, such as 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.
| BROOKLINE BANCORP, INC. AND SUBSIDIARIES |
| Selected Financial Highlights (Unaudited) |
| |
| | At or for the Three Months Ended December 31, | | At or for the Year Ended December 31, | | | |
| | 2013 | | 2012 | | 2013 | | 2012 | | | | |
| | (Dollars In Thousands Except Share Data) | | | |
| Earnings Data: | | | | | | | | | | | | |
| Net interest income | | $ | 43,774 | | | $ | 44,564 | | | $ | 176,218 | | | $ | 177,368 | | | | | |
| Provision for credit losses | | | 3,887 | | | | 3,101 | | | | 10,929 | | | | 15,888 | | | | | |
| Non-interest income | | | 3,907 | | | | 6,504 | | | | 13,825 | | | | 18,605 | | | | | |
| Non-interest expense | | | 31,320 | | | | 28,869 | | | | 122,460 | | | | 120,375 | | | | | |
| Income before income taxes | | | 12,474 | | | | 19,098 | | | | 56,654 | | | | 59,710 | | | | | |
| Net income attributable to Brookline Bancorp, Inc. | | | 7,654 | | | | 11,863 | | | | 35,386 | | | | 37,142 | | | | | |
| | | | | | | | | | | | |
| Performance Ratios: | | | | | | | | | | | | |
| Net interest margin (1) | | | 3.54 | % | | | 3.79 | % | | | 3.64 | % | | | 3.85 | % | | | | |
| Interest-rate spread (1) | | | 3.38 | % | | | 3.62 | % | | | 3.49 | % | | | 3.67 | % | | | | |
| Return on average assets | | | 0.58 | % | | | 0.93 | % | | | 0.68 | % | | | 0.74 | % | | | | |
| Return on average stockholders' equity | | | 4.95 | % | | | 7.76 | % | | | 5.74 | % | | | 6.12 | % | | | | |
| Return on average tangible stockholders' equity | | | 6.61 | % | | | 10.53 | % | | | 7.71 | % | | | 8.40 | % | | | | |
| Efficiency ratio (non-GAAP) | | | 65.69 | % | | | 56.53 | % | | | 64.44 | % | | | 61.42 | % | | | | |
| | | | | | | | | | | | |
| Per Common Share Data: | | | | | | | | | | | | |
| Net income — Basic | | $ | 0.11 | | | $ | 0.17 | | | $ | 0.51 | | | $ | 0.53 | | | | | |
| Net income — Diluted | | | 0.11 | | | | 0.17 | | | | 0.51 | | | | 0.53 | | | | | |
| Cash dividends declared | | | 0.085 | | | | 0.085 | | | | 0.340 | | | | 0.340 | | | | | |
| Book value per share (end of period) | | | 8.79 | | | | 8.78 | | | | 8.79 | | | | 8.78 | | | | | |
| Tangible book value per share (end of period) (non-GAAP) | | | 6.57 | | | | 6.49 | | | | 6.57 | | | | 6.49 | | | | | |
| Stock price (end of period) | | | 9.55 | | | | 8.50 | | | | 9.55 | | | | 8.50 | | | | | |
| | | | | | | | | | | | |
| (1) Calculated on a fully tax-equivalent basis. | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | At or for the Three Months Ended |
| | Dec 31, 2013 | | Sep 30, 2013 | | Jun 30, 2013 | | Mar 31, 2013 | | Dec 31, 2012 |
| | (Dollars in Thousands) |
| Balance Sheet: | | | | | | | | | | | | |
| Total assets | | $ | 5,325,106 | | | $ | 5,236,229 | | | $ | 5,150,480 | | | $ | 5,110,378 | | | $ | 5,147,534 | |
| Total loans and leases | | | 4,362,465 | | | | 4,299,477 | | | | 4,205,015 | | | | 4,173,985 | | | | 4,175,712 | |
| Total deposits | | | 3,835,006 | | | | 3,737,978 | | | | 3,656,981 | | | | 3,626,033 | | | | 3,616,259 | |
| Brookline Bancorp, Inc. stockholders’ equity | | | 613,867 | | | | 614,811 | | | | 611,284 | | | | 614,039 | | | | 612,097 | |
| | | | | | | | | | | | |
| Asset Quality: | | | | | | | | | | | | |
| Nonperforming assets | | $ | 18,108 | | | $ | 16,738 | | | $ | 18,986 | | | $ | 22,941 | | | $ | 23,737 | |
| Nonperforming assets as a percentage of total assets | | | 0.34 | % | | | 0.32 | % | | | 0.37 | % | | | 0.45 | % | | | 0.46 | % |
| Allowance for loan and lease losses | | $ | 48,473 | | | $ | 46,390 | | | $ | 44,281 | | | $ | 42,532 | | | $ | 41,152 | |
Allowance for loan and lease losses as a percentage of total loans and leases | | | 1.11 | % | | | 1.08 | % | | | 1.05 | % | | | 1.02 | % | | | 0.99 | % |
| Net loan and lease charge-offs | | $ | 1,676 | | | $ | 621 | | | $ | 639 | | | $ | 419 | | | $ | 826 | |
Net loan and lease charge-offs as a percentage of average loans and leases (annualized) | | | 0.16 | % | | | 0.06 | % | | | 0.06 | % | | | 0.04 | % | | | 0.08 | % |
| | | | | | | | | | | | |
| Capital Ratios: | | | | | | | | | | | | |
| Stockholders’ equity to total assets | | | 11.53 | % | | | 11.74 | % | | | 11.87 | % | | | 12.02 | % | | | 11.89 | % |
Tangible stockholders’ equity to tangible assets (non-GAAP) | | | 8.88 | % | | | 9.03 | % | | | 9.10 | % | | | 9.20 | % | | | 9.08 | % |
| BROOKLINE BANCORP, INC. AND SUBSIDIARIES |
| Consolidated Balance Sheets (Unaudited) |
| | | | | | | | | | | | | | |
| | December 31,
2013 | | September 30,
2013 | | June 30,
2013 | | March 31,
2013 | | December 31,
2012 |
| | | (In Thousands Except Share Data) |
| ASSETS | | | | | | | | | | | | | | |
| Cash and due from banks | | | $ | 37,148 | | | | $ | 37,220 | | | | $ | 33,008 | | | $ | | 39,330 | | | | $ | 78,441 | |
| Short-term investments | | | | 55,357 | | | | | 58,195 | | | | | 66,787 | | | | | 52,766 | | | | | 38,656 | |
| Total cash and cash equivalents | | | | 92,505 | | | | | 95,415 | | | | | 99,795 | | | | | 92,096 | | | | | 117,097 | |
| Investment securities available-for-sale | | | | 492,428 | | | | | 480,402 | | | | | 479,177 | | | | | 486,625 | | | | | 481,323 | |
| Investment securities held-to-maturity | | | | 500 | | | | | 500 | | | | | 500 | | | | | 500 | | | | | 500 | |
| Total investment securities | | | | 492,928 | | | | | 480,902 | | | | | 479,677 | | | | | 487,125 | | | | | 481,823 | |
| Loans held-for-sale | | | | 13,372 | | | | | 200 | | | | | 4,221 | | | | | 839 | | | | | 3,233 | |
| Loans and leases: | | | | | | | | | | | | | | |
| Commercial real estate loans: | | | | | | | | | | | | | | |
| Commercial real estate mortgage | | | | 1,461,985 | | | | | 1,400,769 | | | | | 1,349,051 | | | | | 1,299,496 | | | | | 1,301,233 | |
| Multi-family mortgage | | | | 627,933 | | | | | 599,601 | | | | | 594,939 | | | | | 585,669 | | | | | 606,533 | |
| Construction | | | | 113,705 | | | | | 118,090 | | | | | 112,684 | | | | | 115,896 | | | | | 98,197 | |
| Total commercial real estate loans | | | | 2,203,623 | | | | | 2,118,460 | | | | | 2,056,674 | | | | | 2,001,061 | | | | | 2,005,963 | |
| Commercial loans and leases: | | | | | | | | | | | | | | |
| Commercial | | | | 407,792 | | | | | 409,376 | | | | | 376,507 | | | | | 399,781 | | | | | 382,277 | |
| Equipment financing | | | | 513,024 | | | | | 513,345 | | | | | 476,724 | | | | | 448,701 | | | | | 420,991 | |
| Condominium association | | | | 44,794 | | | | | 43,205 | | | | | 41,859 | | | | | 43,043 | | | | | 44,187 | |
| Total commercial loans and leases | | | | 965,610 | | | | | 965,926 | | | | | 895,090 | | | | | 891,525 | | | | | 847,455 | |
| Indirect automobile loans | | | | 400,531 | | | | | 440,949 | | | | | 479,782 | | | | | 510,954 | | | | | 542,344 | |
| Consumer loans: | | | | | | | | | | | | | | |
| Residential mortgage | | | | 528,185 | | | | | 511,835 | | | | | 507,099 | | | | | 509,155 | | | | | 511,109 | |
| Home equity | | | | 257,461 | | | | | 254,888 | | | | | 257,839 | | | | | 254,048 | | | | | 261,562 | |
| Other consumer | | | | 7,055 | | | | | 7,419 | | | | | 8,531 | | | | | 7,242 | | | | | 7,279 | |
| Total consumer loans | | | | 792,701 | | | | | 774,142 | | | | | 773,469 | | | | | 770,445 | | | | | 779,950 | |
| Total loans and leases | | | | 4,362,465 | | | | | 4,299,477 | | | | | 4,205,015 | | | | | 4,173,985 | | | | | 4,175,712 | |
| Allowance for loan and lease losses | | | | (48,473 | ) | | | | (46,390 | ) | | | | (44,281 | ) | | | | (42,532 | ) | | | | (41,152 | ) |
| Net loans and leases | | | | 4,313,992 | | | | | 4,253,087 | | | | | 4,160,734 | | | | | 4,131,453 | | | | | 4,134,560 | |
| Restricted equity securities | | | | 66,559 | | | | | 66,627 | | | | | 66,627 | | | | | 66,553 | | | | | 68,661 | |
| Premises and equipment, net | | | | 80,505 | | | | | 79,504 | | | | | 76,867 | | | | | 74,223 | | | | | 70,791 | |
| Deferred tax asset | | | | 31,710 | | | | | 34,322 | | | | | 32,739 | | | | | 29,123 | | | | | 27,197 | |
| Goodwill, net | | | | 137,890 | | | | | 137,890 | | | | | 137,890 | | | | | 137,890 | | | | | 137,890 | |
| Identified intangible assets, net of accumulated amortization | | | | 16,887 | | | | | 18,015 | | | | | 19,168 | | | | | 20,345 | | | | | 21,510 | |
| Other real estate owned and repossessed assets, net | | | | 1,578 | | | | | 1,319 | | | | | 1,493 | | | | | 1,248 | | | | | 1,491 | |
| Other assets | | | | 77,180 | | | | | 68,948 | �� | | | | 71,269 | | | | | 69,483 | | | | | 83,281 | |
| Total assets | | | $ | 5,325,106 | | | | $ | 5,236,229 | | | | $ | 5,150,480 | | | $ | | 5,110,378 | | | | $ | 5,147,534 | |
| | | | | | | | | | | | | | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | | | |
| Non-interest-bearing deposits: | | | | | | | | | | | | | | |
| Demand checking accounts | | | $ | 707,023 | | | | $ | 667,181 | | | | $ | 644,507 | | | $ | | 623,315 | | | | $ | 623,274 | |
| Interest-bearing deposits: | | | | | | | | | | | | | | |
| NOW accounts | | | | 210,602 | | | | | 204,164 | | | | | 196,778 | | | | | 194,313 | | | | | 212,858 | |
| Savings accounts | | | | 494,734 | | | | | 512,393 | | | | | 503,170 | | | | | 509,967 | | | | | 515,367 | |
| Money market accounts | | | | 1,487,979 | | | | | 1,403,881 | | | | | 1,340,024 | | | | | 1,303,231 | | | | | 1,253,819 | |
| Certificate of deposit accounts | | | | 934,668 | | | | | 950,359 | | | | | 972,502 | | | | | 995,207 | | | | | 1,010,941 | |
Total interest-bearing deposits | | | | 3,127,983 | | | | | 3,070,797 | | | | | 3,012,474 | | | | | 3,002,718 | | | | | 2,992,985 | |
| Total deposits | | | | 3,835,006 | | | | | 3,737,978 | | | | | 3,656,981 | | | | | 3,626,033 | | | | | 3,616,259 | |
| Borrowed funds: | | | | | | | | | | | | | | |
| Advances from the FHLBB | | | | 768,773 | | | | | 784,740 | | | | | 785,565 | | | | | 759,675 | | | | | 790,865 | |
| Other borrowed funds | | | | 43,782 | | | | | 44,062 | | | | | 44,501 | | | | | 60,772 | | | | | 63,104 | |
| Total borrowed funds | | | | 812,555 | | | | | 828,802 | | | | | 830,066 | | | | | 820,447 | | | | | 853,969 | |
| Mortgagors’ escrow accounts | | | | 7,889 | | | | | 8,008 | | | | | 7,465 | | | | | 7,823 | | | | | 6,946 | |
| Accrued expenses and other liabilities | | | | 51,485 | | | | | 42,820 | | | | | 41,097 | | | | | 38,825 | | | | | 54,551 | |
| Total liabilities | | | | 4,706,935 | | | | | 4,617,608 | | | | | 4,535,609 | | | | | 4,493,128 | | | | | 4,531,725 | |
| | | | | | | | | | | | | | |
| Stockholders' 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, 75,744,445 shares, and 75,749,825 shares issued, respectively | | | | | | | | | | | | | | |
| | | 757 | | | | | 757 | | | | | 757 | | | | | 757 | | | | | 757 | |
| Additional paid-in capital | | | | 617,539 | | | | | 616,968 | | | | | 619,033 | | | | | 618,708 | | | | | 618,426 | |
| Retained earnings, partially restricted | | | | 64,903 | | | | | 63,210 | | | | | 59,747 | | | | | 56,211 | | | | | 53,358 | |
| Accumulated other comprehensive (loss) income | | | | (7,916 | ) | | | | (4,900 | ) | | | | (4,441 | ) | | | | 2,233 | | | | | 3,483 | |
| Treasury stock, at cost; | | | | | | | | | | | | | | |
| 5,171,985 shares, 5,154,327 shares, 5,373,733 shares, 5,373,733 shares, and 5,373,733 shares, respectively | | | | | | | | | | | | | | |
| | | (59,826 | ) | | | | (59,576 | ) | | | | (62,107 | ) | | | | (62,107 | ) | | | | (62,107 | ) |
| Unallocated common stock held by ESOP; | | | | | | | | | | | | | | |
| 291,666 shares, 302,229 shares, 312,792 shares, 323,355 shares, and 333,918 shares, respectively | | | | | | | | | | | | | | |
| | | (1,590 | ) | | | | (1,648 | ) | | | | (1,705 | ) | | | | (1,763 | ) | | | | (1,820 | ) |
| Total Brookline Bancorp, Inc. stockholders’ equity | | | | 613,867 | | | | | 614,811 | | | | | 611,284 | | | | | 614,039 | | | | | 612,097 | |
| Noncontrolling interest in subsidiary | | | | 4,304 | | | | | 3,810 | | | | | 3,587 | | | | | 3,211 | | | | | 3,712 | |
| Total stockholders' equity | | | | 618,171 | | | | | 618,621 | | | | | 614,871 | | | | | 617,250 | | | | | 615,809 | |
| Total liabilities and stockholders' equity | | | $ | 5,325,106 | | | | $ | 5,236,229 | | | | $ | 5,150,480 | | | $ | | 5,110,378 | | | | $ | 5,147,534 | |
| BROOKLINE BANCORP, INC. AND SUBSIDIARIES |
| Consolidated Statements of Income (Unaudited) |
| | | | | | | | |
| | Three Months Ended December 31, | | Year Ended December 31, |
| | 2013 | | 2012 | | 2013 | | 2012 |
| | (In Thousands Except Share Data) |
| Interest and dividend income: | | | | | | | | |
| Loans and leases | | $ | 48,573 | | | $ | 50,662 | | | $ | 197,098 | | | $ | 203,711 | |
| Debt securities | | | 2,136 | | | | 1,832 | | | | 7,963 | | | | 8,551 | |
| Short-term investments | | | 39 | | | | 42 | | | | 111 | | | | 208 | |
| Marketable and restricted equity securities | | | 301 | | | | 440 | | | | 1,212 | | | | 730 | |
| Total interest and dividend income | | | 51,049 | | | | 52,976 | | | | 206,384 | | | | 213,200 | |
| | | | | | | | |
| Interest expense: | | | | | | | | |
| Deposits | | | 4,559 | | | | 5,077 | | | | 18,773 | | | | 21,432 | |
| Borrowed funds | | | 2,716 | | | | 3,335 | | | | 11,393 | | | | 14,400 | |
| Total interest expense | | | 7,275 | | | | 8,412 | | | | 30,166 | | | | 35,832 | |
| | | | | | | | |
| Net interest income | | | 43,774 | | | | 44,564 | | | | 176,218 | | | | 177,368 | |
| Provision for credit losses | | | 3,887 | | | | 3,101 | | | | 10,929 | | | | 15,888 | |
| Net interest income after provision for credit losses | | | 39,887 | | | | 41,463 | | | | 165,289 | | | | 161,480 | |
| | | | | | | | |
| Non-interest income: | | | | | | | | |
| Fees, charges and other income | | | 3,828 | | | | 4,716 | | | | 15,240 | | | | 16,475 | |
| Loss from investments in affordable housing projects | | | (318 | ) | | | (239 | ) | | | (1,812 | ) | | | (694 | ) |
| Gain (loss) on sales of securities, net | | | 397 | | | | 129 | | | | 397 | | | | 926 | |
| Gain on sales of loans and leases | | | - | | | | 1,898 | | | | - | | | | 1,898 | |
| Total non-interest income | | | 3,907 | | | | 6,504 | | | | 13,825 | | | | 18,605 | |
| | | | | | | | |
| Non-interest expense: | | | | | | | | |
| Compensation and employee benefits | | | 16,675 | | | | 15,705 | | | | 65,261 | | | | 58,830 | |
| Occupancy | | | 3,356 | | | | 2,759 | | | | 12,616 | | | | 10,611 | |
| Equipment and data processing | | | 4,476 | | | | 3,283 | | | | 16,899 | | | | 14,830 | |
| Professional services | | | 1,352 | | | | 1,536 | | | | 5,695 | | | | 12,475 | |
| FDIC insurance | | | 724 | | | | 1,089 | | | | 3,102 | | | | 4,212 | |
| Advertising and marketing | | | 807 | | | | 818 | | | | 3,003 | | | | 2,984 | |
| Amortization of identified intangible assets | | | 1,127 | | | | 1,797 | | | | 4,623 | | | | 5,622 | |
| Other | | | 2,803 | | | | 1,882 | | | | 11,261 | | | | 10,811 | |
| Total non-interest expense | | | 31,320 | | | | 28,869 | | | | 122,460 | | | | 120,375 | |
| | | | | | | | |
| Income before income taxes | | | 12,474 | | | | 19,098 | | | | 56,654 | | | | 59,710 | |
| Provision for income taxes | | | 4,325 | | | | 6,868 | | | | 19,481 | | | | 21,341 | |
| Net income before noncontrolling interest in subsidiary | | | 8,149 | | | | 12,230 | | | | 37,173 | | | | 38,369 | |
Less net income attributable to noncontrolling interest in subsidiary | | | | | | | | |
| | 495 | | | | 367 | | | | 1,787 | | | | 1,227 | |
| Net income attributable to Brookline Bancorp, Inc. | | $ | 7,654 | | | $ | 11,863 | | | $ | 35,386 | | | $ | 37,142 | |
| | | | | | | | |
| Earnings per common share: | | | | | | | | |
| Basic | | $ | 0.11 | | | $ | 0.17 | | | $ | 0.51 | | | $ | 0.53 | |
| Diluted | | $ | 0.11 | | | $ | 0.17 | | | | 0.51 | | | | 0.53 | |
| | | | | | | | |
| Weighted average common shares outstanding during the period: | | | | | | |
| Basic | | | 69,862,175 | | | | 69,742,225 | | | | 69,808,164 | | | | 69,702,417 | |
| Diluted | | | 69,951,683 | | | | 69,799,324 | | | | 69,883,924 | | | | 69,746,256 | |
| | | | | | | | |
| Dividends declared per common share | | $ | 0.085 | | | $ | 0.085 | | | $ | 0.340 | | | $ | 0.340 | |
| BROOKLINE BANCORP, INC. AND SUBSIDIARIES |
| Asset Quality Analysis (Unaudited) |
| | | | | | | | | | |
| | At or for the Three Months Ended |
| | Dec 31, 2013 | | Sep 30, 2013 | | Jun 30, 2013 | | Mar 31, 2013 | | Dec 31, 2012 |
| | (Dollars in Thousands) |
| NONPERFORMING ASSETS: | | | | | | | | | | |
| | | | | | | | | | |
| Loans and leases accounted for on a nonaccrual basis: | | | | | | | | | | |
| Commercial real estate mortgage | | $ | 1,098 | | | $ | 1,137 | | | $ | 2,682 | | | $ | 3,970 | | | $ | 4,014 | |
| Multi-family mortgage | | | - | | | | 664 | | | | 1,593 | | | | 4,132 | | | | 4,233 | |
| Construction | | | - | | | | - | | | | - | | | | - | | | | - | |
| Total commercial real estate loans | | | 1,098 | | | | 1,801 | | | | 4,275 | | | | 8,102 | | | | 8,247 | |
| | | | | | | | | | |
| Commercial | | | 6,147 | | | | 4,747 | | | | 4,680 | | | | 5,035 | | | | 5,454 | |
| Equipment financing | | | 4,145 | | | | 4,116 | | | | 4,014 | | | | 3,595 | | | | 3,873 | |
| Condominium association | | | 1 | | | | 3 | | | | 4 | | | | 6 | | | | 8 | |
| Total commercial loans and leases | | | 10,293 | | | | 8,866 | | | | 8,698 | | | | 8,636 | | | | 9,335 | |
| | | | | | | | | | |
| Indirect automobile loans | | | 259 | | | | 195 | | | | 156 | | | | 62 | | | | 99 | |
| | | | | | | | | | |
| Residential mortgage | | | 2,875 | | | | 2,738 | | | | 2,786 | | | | 3,724 | | | | 3,804 | |
| Home equity | | | 1,987 | | | | 1,801 | | | | 1,557 | | | | 1,150 | | | | 716 | |
| Other consumer | | | 18 | | | | 18 | | | | 21 | | | | 19 | | | | 45 | |
| Total consumer loans | | | 4,880 | | | | 4,557 | | | | 4,364 | | | | 4,893 | | | | 4,565 | |
| | | | | | | | | | |
| Total nonaccrual loans and leases | - | | 16,530 | | - | | 15,419 | | - | | 17,493 | | - | | 21,693 | | - | | 22,246 | |
| | | | | | | | | | |
| Other real estate owned | | | 578 | | | | 726 | | | | 1,002 | | | | 943 | | | | 903 | |
| Other repossessed assets | | | 1,000 | | | | 593 | | | | 491 | | | | 305 | | | | 588 | |
| | | | | | | | | | |
| Total nonperforming assets | | $ | 18,108 | | | $ | 16,738 | | | $ | 18,986 | | | $ | 22,941 | | | $ | 23,737 | |
| | | | | | | | | | |
| | | | | | | | | | |
| Troubled debt restructurings on accrual | | | 12,759 | | | | 12,158 | | | | 9,631 | | | | 9,816 | | | | 10,414 | |
| Troubled debt restructurings on nonaccrual | | | 5,589 | | | | 5,905 | | | | 6,919 | | | | 7,514 | | | | 6,786 | |
| Total troubled debt restructurings | | $ | 18,348 | | | $ | 18,063 | | | $ | 16,550 | | | $ | 17,330 | | | $ | 17,200 | |
| | | | | | | | | | |
| | | | | | | | | | |
| Nonperforming loans and leases as a percentage of total loans and leases | | | 0.38 | % | | | 0.36 | % | | | 0.42 | % | | | 0.52 | % | | | 0.53 | % |
| Nonperforming assets as a percentage of total assets | | | 0.34 | % | | | 0.32 | % | | | 0.37 | % | | | 0.45 | % | | | 0.46 | % |
| | | | | | | | | | |
| | | | | | | | | | |
| PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES: | | | | | | | | | |
| | | | | | | | | | |
| Allowance for loan and lease losses at beginning of period | | $ | 46,390 | | | $ | 44,281 | | | $ | 42,532 | | | $ | 41,152 | | | $ | 38,913 | |
| Charge-offs | | | (2,193 | ) | | | (903 | ) | | | (1,028 | ) | | | (661 | ) | | | (1,527 | ) |
| Recoveries | | | 517 | | | | 282 | | | | 389 | | | | 242 | | | | 701 | |
| Net charge-offs | | | (1,676 | ) | | | (621 | ) | | | (639 | ) | | | (419 | ) | | | (826 | ) |
| Provision for loan and lease losses | | | 3,759 | | | | 2,730 | | | | 2,388 | | | | 1,799 | | | | 3,065 | |
| Allowance for loan and lease losses at end of period | | $ | 48,473 | | | $ | 46,390 | | | $ | 44,281 | | | $ | 42,532 | | | $ | 41,152 | |
| | | | | | | | | | |
| Allowance for loan and lease losses as a percentage of total loans and leases | | | | | | | | | | |
| | 1.11 | % | | | 1.08 | % | | | 1.05 | % | | | 1.02 | % | | | 0.99 | % |
| Allowance for loan and lease losses related to originated loans and leases as a percentage of originated loans and leases | | | | | | | | | | |
| | 1.32 | % | | | 1.31 | % | | | 1.34 | % | | | 1.34 | % | | | 1.32 | % |
| | | | | | | | | | |
| NET CHARGE-OFFS: | | | | | | | | | | |
| | | | | | | | | | |
| Commercial real estate loans | | $ | (9 | ) | | $ | 7 | | | $ | 81 | | | $ | (4 | ) | | $ | - | |
| Commercial loans and leases | | | 803 | | | | 157 | | | | 295 | | | | 166 | | | | 196 | |
| Indirect automobile loans | | | 419 | | | | 396 | | | | 170 | | | | 231 | | | | 366 | |
| Consumer loans | | | 463 | | | | 61 | | | | 93 | | | | 26 | | | | 264 | |
| Total net charge-offs | | $ | 1,676 | | | $ | 621 | | | $ | 639 | | | $ | 419 | | | $ | 826 | |
| | | | | | | | | | |
| Net loan and lease charge-offs as a percentage of average loans and leases (annualized) | | | | | | | | | | |
| | 0.16 | % | | | 0.06 | % | | | 0.06 | % | | | 0.04 | % | | | 0.08 | % |
| BROOKLINE BANCORP, INC. AND SUBSIDIARIES |
| Average Yields / Costs (Unaudited) |
| |
| | At or for the Three Months Ended |
| | December 31, 2013 | | | September 30, 2013 | | | December 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 | | $ | 72,304 | | | | $ | 39 | | 0.21 | % | | | $ | 69,272 | | | | $ | 22 | | | 0.13 | % | | | $ | 70,040 | | | | $ | 42 | | | 0.24 | % |
| Debt securities (2) | | | 474,968 | | | | | 2,141 | | 1.80 | % | | | | 475,506 | | | | | 2,047 | | | 1.72 | % | | | | 456,690 | | | | | 1,854 | | | 1.62 | % |
| Marketable and restricted equity securities (2) | | | 66,990 | | | | | 350 | | 2.08 | % | | | | 66,995 | | | | | 346 | | | 2.06 | % | | | | 68,660 | | | | | 508 | | | 2.95 | % |
| Total investments | | | 614,262 | | | | | 2,530 | | 1.65 | % | | | | 611,773 | | | | | 2,415 | | | 1.58 | % | | | | 595,390 | | | | | 2,404 | | | 1.61 | % |
| Commercial real estate loans (3) | | | 2,165,330 | | | | | 24,816 | | 4.54 | % | | | | 2,088,450 | | | | | 24,021 | | | 4.56 | % | | | | 1,967,921 | | | | | 23,798 | | | 4.86 | % |
| Commercial loans (3) | | | 461,656 | | | | | 4,783 | | 4.07 | % | | | | 442,052 | | | | | 4,493 | | | 3.99 | % | | | | 395,991 | | | | | 5,042 | | | 5.08 | % |
| Equipment financing (3) | | | 494,173 | | | | | 7,897 | | 6.36 | % | | | | 489,127 | | | | | 8,343 | | | 6.79 | % | | | | 428,867 | | | | | 8,285 | | | 7.73 | % |
| Indirect automobile loans (3) | | | 420,456 | | | | | 3,743 | | 3.53 | % | | | | 460,927 | | | | | 4,172 | | | 3.59 | % | | | | 560,118 | | | | | 5,510 | | | 3.91 | % |
| Residential mortgage loans (3) | | | 516,155 | | | | | 4,794 | | 3.70 | % | | | | 507,616 | | | | | 4,866 | | | 3.81 | % | | | | 507,955 | | | | | 5,323 | | | 4.19 | % |
| Other consumer loans (3) | | | 264,528 | | | | | 2,738 | | 4.10 | % | | | | 262,442 | | | | | 2,762 | | | 4.17 | % | | | | 269,019 | | | | | 2,713 | | | 4.01 | % |
| Total loans and leases | | | 4,322,298 | | | | | 48,771 | | 4.47 | % | | | | 4,250,614 | | | | | 48,657 | | | 4.54 | % | | | | 4,129,871 | | | | | 50,671 | | | 4.91 | % |
| Total interest-earning assets | | | 4,936,560 | | | | | 51,301 | | 4.12 | % | | | | 4,862,387 | | | | | 51,072 | | | 4.16 | % | | | | 4,725,261 | | | | | 53,075 | | | 4.50 | % |
| Allowance for loan and lease losses | | | (46,566 | ) | | | | | | | | | (44,959 | ) | | | | | | | | | | (39,435 | ) | | | | | | |
| Non-interest-earning assets | | | 397,488 | | | | | | | | | | 382,155 | | | | | | | | | | | 398,980 | | | | | | | |
| Total assets | | $ | 5,287,482 | | | | | | | | | $ | 5,199,583 | | | | | | | | | | $ | 5,084,806 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Liabilities and Stockholders' Equity: | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing deposits: | | | | | | | | | | | | | | | | | | | | | | | | | |
| NOW accounts | | $ | 207,768 | | | | $ | 45 | | 0.09 | % | | | $ | 198,643 | | | | $ | 42 | | | 0.08 | % | | | $ | 184,849 | | | | $ | 48 | | | 0.10 | % |
| Savings accounts | | | 502,802 | | | | | 312 | | 0.25 | % | | | | 512,205 | | | | | 315 | | | 0.24 | % | | | | 518,452 | | | | | 374 | | | 0.29 | % |
| Money market accounts | | | 1,471,402 | | | | | 2,086 | | 0.56 | % | | | | 1,377,495 | | | | | 2,040 | | | 0.59 | % | | | | 1,246,514 | | | | | 2,115 | | | 0.68 | % |
| Certificates of deposit | | | 942,595 | | | | | 2,116 | | 0.89 | % | | | | 957,494 | | | | | 2,240 | | | 0.93 | % | | | | 1,028,884 | | | | | 2,540 | | | 0.98 | % |
| Total interest-bearing deposits | | | 3,124,567 | | | | | 4,559 | | 0.58 | % | | | | 3,045,837 | | | | | 4,637 | | | 0.60 | % | | | | 2,978,699 | | | | | 5,077 | | | 0.68 | % |
| Advances from the FHLBB | | | 752,854 | | | | | 2,583 | | 1.36 | % | | | | 772,067 | | | | | 2,666 | | | 1.37 | % | | | | 757,842 | | | | | 3,207 | | | 1.68 | % |
| Other borrowed funds | | | 40,729 | | | | | 133 | | 1.29 | % | | | | 44,326 | | | | | 108 | | | 0.96 | % | | | | 62,299 | | | | | 128 | | | 0.82 | % |
| Total interest-bearing liabilities | | | 3,918,150 | | | | | 7,275 | | 0.74 | % | | | | 3,862,230 | | | | | 7,411 | | | 0.76 | % | | | | 3,798,840 | | | | | 8,412 | | | 0.88 | % |
| Non-interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
| Demand checking accounts | | | 701,163 | | | | | | | | | | 675,907 | | | | | | | | | | | 612,267 | | | | | | | |
| Other non-interest-bearing liabilities | | | 45,804 | | | | | | | | | | 44,832 | | | | | | | | | | | 58,496 | | | | | | | |
| Total liabilities | | | 4,665,117 | | | | | | | | | | 4,582,969 | | | | | | | | | | | 4,469,603 | | | | | | | |
| Brookline Bancorp, Inc. stockholders’ equity | | | 618,385 | | | | | | | | | | 612,866 | | | | | | | | | | | 611,181 | | | | | | | |
| Noncontrolling interest in subsidiary | | | 3,980 | | | | | | | | | | 3,748 | | | | | | | | | | | 4,022 | | | | | | | |
| Total liabilities and equity | | $ | 5,287,482 | | | | | | | | | $ | 5,199,583 | | | | | | | | | | $ | 5,084,806 | | | | | | | |
| Net interest income (tax-equivalent basis) / | | | | | | | | | | | | | | | | | | | | | | | |
| Interest-rate spread (4) | | | | | | 44,026 | | 3.38 | % | | | | | | | 43,661 | | | 3.40 | % | | | | | | | 44,663 | | | 3.62 | % |
| Less adjustment of tax-exempt income | | | | 252 | | | | | | | | | 249 | | | | | | | | | | 99 | | | |
| Net interest income | | | | | $ | 43,774 | | | | | | | | $ | 43,412 | | | | | | | | | $ | 44,564 | | | |
| Net interest margin (5) | | | | | | | 3.54 | % | | | | | | | | | 3.56 | % | | | | | | | | | 3.79 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| (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) |
| |
| At or for the Year Ended |
| December 31, 2013 | | | December 31, 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 | $ | 62,258 | | | | $ | 111 | | | 0.18 | % | | | $ | 95,173 | | | | $ | 209 | | | 0.22 | % |
| Debt securities (2) | | 477,318 | | | | | 7,983 | | | 1.67 | % | | | | 449,694 | | | | | 8,606 | | | 1.91 | % |
| Marketable and restricted equity securities (2) | | 67,375 | | | | | 1,405 | | | 2.09 | % | | | | 58,354 | | | | | 824 | | | 1.41 | % |
| Total investments | | 606,951 | | | | | 9,499 | | | 1.57 | % | | | | 603,221 | | | | | 9,639 | | | 1.61 | % |
| Commercial real estate loans (3) | | 2,091,860 | | | | | 98,245 | | | 4.67 | % | | | | 1,910,320 | | | | | 94,521 | | | 4.97 | % |
| Commercial loans (3) | | 435,184 | | | | | 20,580 | | | 4.68 | % | | | | 370,366 | | | | | 19,471 | | | 5.26 | % |
| Equipment financing (3) | | 452,601 | | | | | 31,076 | | | 6.87 | % | | | | 394,845 | | | | | 32,027 | | | 8.11 | % |
| Indirect automobile loans (3) | | 475,387 | | | | | 17,355 | | | 3.65 | % | | | | 573,398 | | | | | 23,641 | | | 4.12 | % |
| Residential mortgage loans (3) | | 511,348 | | | | | 19,926 | | | 3.90 | % | | | | 501,660 | | | | | 21,998 | | | 4.39 | % |
| Other consumer loans (3) | | 263,955 | | | | | 10,624 | | | 4.02 | % | | | | 269,725 | | | | | 12,299 | | | 4.56 | % |
| Total loans and leases | | 4,230,335 | | | | | 197,806 | | | 4.66 | % | | | | 4,020,314 | | | | | 203,957 | | | 5.08 | % |
| Total interest-earning assets | | 4,837,286 | | | | | 207,305 | | | 4.27 | % | | | | 4,623,535 | | | | | 213,596 | | | 4.63 | % |
| Allowance for loan and lease losses | | (44,008 | ) | | | | | | | | | | (38,073 | ) | | | | | | |
| Non-interest-earning assets | | 380,724 | | | | | | | | | | | 407,330 | | | | | | | |
| Total assets | $ | 5,174,002 | | | | | | | | | | $ | 4,992,792 | | | | | | | |
| | | | | | | | | | | | | | | | |
| Liabilities and Stockholders' Equity: | | | | | | | | | | | | | | | | |
| Interest-bearing liabilities: | | | | | | | | | | | | | | | | |
| Interest-bearing deposits: | | | | | | | | | | | | | | | | |
| NOW accounts | $ | 198,050 | | | | $ | 173 | | | 0.09 | % | | | $ | 183,046 | | | | $ | 209 | | | 0.11 | % |
| Savings accounts | | 509,436 | | | | | 1,288 | | | 0.25 | % | | | | 517,485 | | | | | 1,726 | | | 0.33 | % |
| Money market accounts | | 1,370,195 | | | | | 8,220 | | | 0.60 | % | | | | 1,203,113 | | | | | 8,773 | | | 0.73 | % |
| Certificates of deposit | | 971,044 | | | | | 9,092 | | | 0.94 | % | | | | 1,055,510 | | | | | 10,724 | | | 1.02 | % |
| Total interest-bearing deposits | | 3,048,725 | | | | | 18,773 | | | 0.62 | % | | | | 2,959,154 | | | | | 21,432 | | | 0.72 | % |
| Advances from the FHLBB | | 759,640 | | | | | 10,886 | | | 1.43 | % | | | | 732,457 | | | | | 13,710 | | | 1.87 | % |
| Other borrowed funds | | 48,367 | | | | | 507 | | | 1.05 | % | | | | 60,497 | | | | | 690 | | | 1.14 | % |
| Total interest-bearing liabilities | | 3,856,732 | | | | | 30,166 | | | 0.78 | % | | | | 3,752,108 | | | | | 35,832 | | | 0.95 | % |
| Non-interest-bearing liabilities: | | | | | | | | | | | | | | | | |
| Demand checking accounts | | 656,724 | | | | | | | | | | | 562,238 | | | | | | | |
| Other non-interest-bearing liabilities | | 40,574 | | | | | | | | | | | 68,055 | | | | | | | |
| Total liabilities | | 4,554,030 | | | | | | | | | | | 4,382,401 | | | | | | | |
| Brookline Bancorp, Inc. stockholders’ equity | | 616,243 | | | | | | | | | | | 606,661 | | | | | | | |
| Noncontrolling interest in subsidiary | | 3,729 | | | | | | | | | | | 3,730 | | | | | | | |
| Total liabilities and equity | $ | 5,174,002 | | | | | | | | | | $ | 4,992,792 | | | | | | | |
| Net interest income (tax-equivalent basis) / | | | | | | | | | | | | | | | |
| Interest-rate spread (4) | | | | | 177,139 | | | 3.49 | % | | | | | | | 177,764 | | | 3.67 | % |
| Less adjustment of tax-exempt income | | | | | 921 | | | | | | | | | | 396 | | | |
| Net interest income | | | | $ | 176,218 | | | | | | | | | $ | 177,368 | | | |
| Net interest margin (5) | | | | | | | 3.64 | % | | | | | | | | | 3.85 | % |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| (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) |
| | | | | | | | | | |
| | | | At or for the Three Months Ended December 31, | | At or for the Year Ended December 31, |
| | | | 2013 | | 2012 | | 2013 | | 2012 |
| Reconciliation Table - Non-GAAP Financial Information | | | | (Dollars in Thousands Except Share Data) |
| | | | | | | | | | |
| Net income attributable to Brookline Bancorp, Inc. | | | | $ | 7,654 | | | $ | 11,863 | | | $ | 35,386 | | | $ | 37,142 | |
| Add: | | | | | | | | | | |
| Compensation-related expenses (after-tax) | | | | | 595 | | | | - | | | | 595 | | | | - | |
| Acquisition-related expenses (after-tax) | | | | | - | | | | - | | | | - | | | | 3,972 | |
| Net earnings from operations | | | | $ | 8,249 | | | $ | 11,863 | | | $ | 35,981 | | | $ | 41,114 | |
| | | | | | | | | | |
| Operating earnings per common share: | | | | | | | | | | |
| Basic | | | | $ | 0.12 | | | $ | 0.17 | | | $ | 0.52 | | | $ | 0.59 | |
| Diluted | | | | | 0.12 | | | | 0.17 | | | | 0.51 | | | | 0.59 | |
| | | | | | | | | | |
| Weighted average common shares outstanding during the period: | | | | | | | | | | |
| Basic | | | | | 69,862,175 | | | | 69,742,225 | | | | 69,808,164 | | | | 69,702,417 | |
| Diluted | | | | | 69,951,683 | | | | 69,799,324 | | | | 69,883,924 | | | | 69,746,256 | |
| | | | | | | | | | |
| | | | | | | | | | |
| | Dec 31, 2013 | | Sep 30, 2013 | | Jun 30, 2013 | | Mar 31, 2013 | | Dec 31, 2012 |
| | (Dollars in Thousands) |
| | | | | | | | | | |
| Brookline Bancorp, Inc. stockholders’ equity | | $ | 613,867 | | | $ | 614,811 | | | $ | 611,284 | | | $ | 614,039 | | | $ | 612,097 | |
| Less: | | | | | | | | | | |
| Goodwill | | | 137,890 | | | | 137,890 | | | | 137,890 | | | | 137,890 | | | | 137,890 | |
| Identified intangible assets | | | 16,887 | | | | 18,015 | | | | 19,168 | | | | 20,345 | | | | 21,510 | |
| Tangible stockholders' equity | | $ | 459,090 | | | $ | 458,906 | | | $ | 454,226 | | | $ | 455,804 | | | $ | 452,697 | |
| | | | | | | | | | |
| Total assets | | $ | 5,325,106 | | | $ | 5,236,229 | | | $ | 5,150,480 | | | $ | 5,110,378 | | | $ | 5,147,534 | |
| Less: | | | | | | | | | | |
| Goodwill | | | 137,890 | | | | 137,890 | | | | 137,890 | | | | 137,890 | | | | 137,890 | |
| Identified intangible assets | | | 16,887 | | | | 18,015 | | | | 19,168 | | | | 20,345 | | | | 21,510 | |
| Tangible assets | | $ | 5,170,329 | | | $ | 5,080,324 | | | $ | 4,993,422 | | | $ | 4,952,143 | | | $ | 4,988,134 | |
| | | | | | | | | | |
Tangible stockholders’ equity to tangible assets | | | 8.88 | % | | | 9.03 | % | | | 9.10 | % | | | 9.20 | % | | | 9.08 | % |
| | | | | | | | | | |
| | | | | | | | | | |
| | Dec 31, 2013 | | Sep 30, 2013 | | Jun 30, 2013 | | Mar 31, 2013 | | Dec 31, 2012 |
| | (Dollars in Thousands) |
| | | | | | | | | | |
| Tangible stockholders' equity | | $ | 459,090 | | | $ | 458,906 | | | $ | 454,226 | | | $ | 455,804 | | | $ | 452,697 | |
| | | | | | | | | | |
| Number of common shares issued | | | 75,744,445 | | | | 75,744,445 | | | | 75,744,445 | | | | 75,744,445 | | | | 75,749,825 | |
| Less: | | | | | | | | | | |
| Treasury shares | | | 5,171,985 | | | | 5,154,327 | | | | 5,373,733 | | | | 5,373,733 | | | | 5,373,733 | |
| Unallocated ESOP shares | | | 291,666 | | | | 302,229 | | | | 312,792 | | | | 323,355 | | | | 333,918 | |
| Unvested restricted stocks | | | 431,068 | | | | 429,818 | | | | 276,011 | | | | 277,510 | | | | 295,055 | |
| Number of common shares outstanding | | | 69,849,726 | | | | 69,858,071 | | | | 69,781,909 | | | | 69,769,847 | | | | 69,747,119 | |
| | | | | | | | | | |
| Tangible book value per common share | | $ | 6.57 | | | $ | 6.57 | | | $ | 6.51 | | | $ | 6.53 | | | $ | 6.49 | |
| | | | | | | | | | |
| | Dec 31, 2013 | | Sep 30, 2013 | | Jun 30, 2013 | | Mar 31, 2013 | | Dec 31, 2012 |
| | (Dollars in Thousands) |
| | | | | | | | | | |
| Allowance for loan and lease losses | | $ | 48,473 | | | $ | 46,390 | | | $ | 44,281 | | | $ | 42,532 | | | $ | 41,152 | |
| Less: | | | | | | | | | | |
| Allowance for acquired loans and leases losses | | | 1,632 | | | | 1,278 | | | | 620 | | | | - | | | |
| Allowance for originated loan and lease losses | | $ | 46,841 | | | $ | 45,112 | | | $ | 43,661 | | | $ | 42,532 | | | $ | 41,152 | |
| | | | | | | | | | |
| Total loans and leases | | $ | 4,362,465 | | | $ | 4,299,477 | | | $ | 4,205,015 | | | $ | 4,173,985 | | | $ | 4,175,712 | |
| Less: | | | | | | | | | | |
| Total acquired loans and leases | | | 815,412 | | | | 865,708 | | | | 938,815 | | | | 997,988 | | | | 1,059,610 | |
| Total originated loans and leases | | $ | 3,547,053 | | | $ | 3,433,769 | | | $ | 3,266,200 | | | $ | 3,175,997 | | | $ | 3,116,102 | |
| | | | | | | | | | |
| Allowance for loan and lease losses related to | | | | | | | | | | |
| originated loans and leases as a percentage of originated loans and leases | | | | | | | | | | |
| | 1.32 | % | | | 1.31 | % | | | 1.34 | % | | | 1.34 | % | | | 1.32 | % |
CONTACT:
Brookline Bancorp, Inc.
Thomas J. Meshako, 617-927-4889
Principal Financial Officer
tmeshako@brkl.com
