Exhibit 99.1
Brookline Bancorp Announces Third Quarter Results
Net Income of $11.6 million, EPS of $0.17
$10 million Stock Repurchase Program
BOSTON--(BUSINESS WIRE)--October 29, 2014--Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced net income of $11.6 million, or $0.17 per basic and diluted share, for the third quarter of 2014, compared to $10.0 million, or $0.14 per basic and diluted share, for the second quarter of 2014.
During the third quarter of 2014, the Company recorded $1.4 million in other income due to a settlement payment from an insurance carrier in relation to a 2012 litigation. Excluding this item, net income would have been $0.15 per basic and diluted share.
Paul Perrault, President and Chief Executive Officer of Brookline Bancorp, Inc., stated: "Thanks to our driven colleagues and our customer focused culture, I am pleased to announce that Brookline Bancorp delivered another excellent quarter with solid loan and deposit growth, as well as strong earnings and returns to our shareholders. The Company will continue to encounter fierce competition, but I am confident that the Company is poised to finish the year strong.”
BALANCE SHEET
Total assets of $5.7 billion at September 30, 2014 increased $130.5 million from June 30, 2014, and increased $392.9 million from December 31, 2013. The growth in total assets was driven by growth in the loan portfolio. At September 30, 2014, total loans and leases were $4.7 billion, representing an increase of $132.1 million from June 30, 2014, and an increase of $373.6 million from December 31, 2013. During the third quarter of 2014, total loans and leases grew 11.5 percent on an annualized basis. At September 30, 2014, the commercial real estate and commercial loan and lease portfolios totaled $3.5 billion, or 74.4 percent of total loans and leases, as compared to $3.4 billion, or 73.7 percent at June 30, 2014, and $3.2 billion, or 72.6 percent at December 31, 2013. Strong loan growth continued in our total commercial real estate and commercial loan and lease portfolios, which increased $133.0 million during the third quarter of 2014, or 15.7 percent on an annualized basis.
Cash, cash equivalents, and investment securities increased $7.4 million to $616.2 million, or 10.8 percent of total assets at September 30, 2014, as compared to $608.8 million, or 10.9 percent of total assets at June 30, 2014, and increased $30.8 million from $585.4 million, or 11.0 percent of total assets at December 31, 2013.
Total deposits of $3.9 billion at September 30, 2014 increased $28.1 million from June 30, 2014, and increased $54.2 million from December 31, 2013. Core deposits, which consist of demand checking, NOW, savings, and money market accounts, increased at a 2.8 percent annualized rate in the third quarter of 2014. The core deposit ratio remained constant at 76.7 percent at September 30, 2014 and June 30, 2014.
Total borrowings at September 30, 2014 were $1.1 billion, an increase of $91.9 million as compared to June 30, 2014, and an increase of $320.3 million as compared to December 31, 2013. During the three months ended September 30, 2014, the Company issued $75.0 million of 6.0% fixed-to-floating subordinated notes due September 15, 2029.
The ratio of stockholders’ equity to total assets was 11.06 percent at September 30, 2014, as compared to 11.23 percent at June 30, 2014 and 11.53 percent at December 31, 2013. The ratio of tangible stockholders’ equity to tangible assets was 8.63 percent at September 30, 2014, as compared to 8.73 percent at June 30, 2014 and 8.88 percent at December 31, 2013.
NET INTEREST INCOME
Net interest income increased $0.9 million to $47.3 million during the third quarter of 2014 from the linked quarter. The increase of $1.3 million in interest income from loans and leases was driven by an increase of $2.1 million due to volume offset by a decrease of $0.8 million due to lower interest rates. The increase in interest income from loans and leases was offset by a $0.3 million increase in interest expense from borrowed funds, primarily due to additional interest expense on the newly issued subordinated notes. The net interest margin decreased 7 basis points to 3.54 percent for the three months ended September 30, 2014.
PROVISION FOR LOAN LOSSES
The Company recorded a provision for loan and lease losses of $1.9 million for the quarter ended September 30, 2014, compared to $2.2 million during the second quarter of 2014. The decrease of $0.3 million quarter over quarter is due to an improvement in the credit characteristics of the equipment financing portfolio, partially offset by additional reserves required for the deterioration in the acquired portfolio and loan growth during the quarter.
Net charge-offs increased slightly to $0.8 million for the third quarter of 2014 compared to $0.7 million for the second quarter of 2014. The ratio of net charge-offs to average loans on an annualized basis remained constant at 0.07 percent for the third and second quarter of 2014.
The allowance for loan losses represented 1.12 percent of total loans and leases at September 30, 2014 and June 30, 2014. The allowance for loan losses related to originated loans and leases as a percentage of originated loans and leases was 1.26 percent at September 30, 2014, compared to 1.31 percent at June 30, 2014 due to improved credit quality slightly offset by loan volume.
NON-INTEREST INCOME
Non-interest income for the quarter ended September 30, 2014 increased $2.4 million to $5.7 million from the linked quarter. The increase was largely driven by a litigation settlement of $1.4 million, an increase in the loan fees of $0.5 million from back-to-back interest-rate swaps and an increase of $0.5 million in the gain on sales of loans and leases held-for sale.
NON-INTEREST EXPENSE
Non-interest expense for the quarter ended September 30, 2014 increased $0.7 million to $31.9 million from the linked quarter, principally driven by a $0.6 million increase in Supplemental Employee Retirement Plan expense due to a decrease in the discount rate.
RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY
The return on average assets increased during the third quarter of 2014 to 0.82 percent at September 30, 2014 from 0.73 percent for the second quarter of 2014. The return on average tangible assets increased to 0.84 percent for the third quarter of 2014 from 0.75 percent for the second quarter of 2014.
The return on average stockholders' equity increased during the third quarter of 2014 to 7.32 percent from 6.37 percent for the second quarter of 2014. The return on average tangible stockholders’ equity increased to 9.66 percent for the third quarter of 2014 from 8.44 percent for the second quarter of 2014.
ASSET QUALITY
Nonperforming loans and leases increased $0.2 million during the third quarter of 2014 to $17.3 million at September 30, 2014 from the linked quarter. The ratio of nonperforming loans and leases to total loans and leases remained unchanged at 0.37 percent at September 30, 2014 from the linked quarter. Nonperforming assets also increased $1.4 million during the third quarter of 2014 to $19.8 million, or 0.35 percent of total assets, at September 30, 2014 from the linked quarter.
DIVIDEND DECLARED
The Company’s Board of Directors approved a dividend of $0.085 per share. The dividend will be paid on November 28, 2014 to shareholders of record on November 14, 2014.
STOCK REPURCHASE
On October 29, 2014, the Board of Directors of the Company approved a stock repurchase program of up to $10.0 million of total outstanding shares of the Company’s common stock over a period of fourteen months ending on December 31, 2015. The shares may be repurchased from time to time in open market or negotiated transactions at prevailing market prices in accordance with federal securities laws.
CONFERENCE CALL
The Company will conduct a conference call/webcast at 1:30 PM Eastern Standard Time on Thursday, October 30, 2014 to discuss the results for the quarter, business highlights and outlook. The call can be accessed by dialing 877-504-4120 (United States) or 412-902-6650 (internationally). A recorded playback of the call will be available for one week following the call at 877-344-7529 (United States) or 412-317-0088 (internationally). The passcode for the playback is 10053487. The call will be available live and in a recorded version on the Company’s website under “Investor Relations” at www.brooklinebancorp.com.
ABOUT BROOKLINE BANCORP, INC.
Brookline Bancorp, Inc., a bank holding company with approximately $5.7 billion in assets and branch locations in Massachusetts and Rhode Island, is headquartered in Boston, Massachusetts and operates as the holding company for Brookline Bank, Bank Rhode Island, and First Ipswich Bank. The 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 ("SEC"). The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.
BASIS OF PRESENTATION
The Company's consolidated financial statements have been prepared in conformity with generally accepted accounting principles (“GAAP”) as set forth by the Financial Accounting Standards Board in its Accounting Standards Codification and through the rules and interpretive releases of the SEC under the authority of federal securities laws. Certain amounts previously reported have been reclassified to conform to the current period's presentation.
NON-GAAP FINANCIAL MEASURES
The Company uses certain non-GAAP financial measures, such as the allowance for loan and lease losses related to originated loans and leases as a percentage of originated loans and leases, tangible book value per common share and tangible stockholders’ equity to tangible assets, return on average tangible assets and return on average tangible stockholders' equity. These non-GAAP financial measures provide information for investors to effectively analyze financial trends of ongoing business activities, and to enhance comparability with peers across the financial services sector. A detailed reconciliation table of the Company's GAAP to the non-GAAP measures is attached.
| BROOKLINE BANCORP, INC. AND SUBSIDIARIES |
| Selected Financial Highlights (Unaudited) |
| | | | | | | | | | |
| | At and for the Three Months Ended |
| | September 30, 2014 | | June 30, 2014 | | March 31, 2014 | | December 31, 2013 | | September 30, 2013 |
| | (Dollars In Thousands Except Share Data) |
| Earnings Data: | | | | | | | | | | |
| Net interest income | | $ | 47,324 | | | $ | 46,434 | | | $ | 47,734 | | | $ | 43,774 | | | $ | 43,412 | |
| Provision for credit losses | | | 2,034 | | | | 2,276 | | | | 2,443 | | | | 3,887 | | | | 2,748 | |
| Non-interest income | | | 5,656 | | | | 3,290 | | | | 5,124 | | | | 3,907 | | | | 3,456 | |
| Non-interest expense | | | 31,924 | | | | 31,222 | | | | 33,576 | | | | 31,320 | | | | 29,556 | |
| Income before provision for income taxes | | | 19,022 | | | | 16,226 | | | | 16,839 | | | | 12,474 | | | | 14,564 | |
| Net income attributable to Brookline Bancorp, Inc. | | | 11,581 | | | | 9,976 | | | | 10,422 | | | | 7,654 | | | | 9,429 | |
| | | | | | | | | | |
| Performance Ratios: | | | | | | | | | | |
| Net interest margin (1) | | | 3.54 | % | | | 3.61 | % | | | 3.82 | % | | | 3.54 | % | | | 3.56 | % |
| Interest-rate spread (1) | | | 3.40 | % | | | 3.47 | % | | | 3.67 | % | | | 3.38 | % | | | 3.40 | % |
| Return on average assets | | | 0.82 | % | | | 0.73 | % | | | 0.78 | % | | | 0.58 | % | | | 0.73 | % |
| Return on average tangible assets (non-GAAP) | | | 0.84 | % | | | 0.75 | % | | | 0.80 | % | | | 0.60 | % | | | 0.75 | % |
| Return on average stockholders' equity | | | 7.32 | % | | | 6.37 | % | | | 6.70 | % | | | 4.95 | % | | | 6.15 | % |
| Return on average tangible stockholders' equity (non-GAAP) | | | 9.66 | % | | | 8.44 | % | | | 8.92 | % | | | 6.61 | % | | | 8.27 | % |
| Efficiency ratio | | | 60.26 | % | | | 62.79 | % | | | 63.52 | % | | | 65.69 | % | | | 63.06 | % |
| | | | | | | | | | |
| Per Common Share Data: | | | | | | | | | | |
| Net income — Basic | | $ | 0.17 | | | $ | 0.14 | | | $ | 0.15 | | | $ | 0.11 | | | $ | 0.14 | |
| Net income — Diluted | | | 0.17 | | | | 0.14 | | | | 0.15 | | | | 0.11 | | | | 0.13 | |
| Cash dividends declared | | | 0.085 | | | | 0.085 | | | | 0.085 | | | | 0.085 | | | | 0.085 | |
| Book value per share (end of period) | | | 9.03 | | | | 8.98 | | | | 8.88 | | | | 8.79 | | | | 8.80 | |
| Tangible book value per share (end of period) (non-GAAP) | | | 6.86 | | | | 6.79 | | | | 6.68 | | | | 6.57 | | | | 6.57 | |
| Stock price (end of period) | | | 8.55 | | | | 9.37 | | | | 9.42 | | | | 9.55 | | | | 9.40 | |
| | | | | | | | | | |
| Balance Sheet: | | | | | | | | | | |
| Total assets | | $ | 5,717,965 | | | $ | 5,587,486 | | | $ | 5,418,785 | | | $ | 5,325,106 | | | $ | 5,236,229 | |
| Total loans and leases | | | 4,736,028 | | | | 4,603,913 | | | | 4,461,997 | | | | 4,362,465 | | | | 4,299,477 | |
| Total deposits | | | 3,889,204 | | | | 3,861,147 | | | | 3,847,650 | | | | 3,835,006 | | | | 3,737,978 | |
| Brookline Bancorp, Inc. stockholders’ equity | | | 632,400 | | | | 627,663 | | | | 620,799 | | | | 613,867 | | | | 614,811 | |
| | | | | | | | | | |
| Asset Quality: | | | | | | | | | | |
| Nonperforming assets | | $ | 19,785 | | | $ | 18,407 | | | $ | 19,430 | | | $ | 18,079 | | | $ | 16,738 | |
| Nonperforming assets as a percentage of total assets | | | 0.35 | % | | | 0.33 | % | | | 0.36 | % | | | 0.34 | % | | | 0.32 | % |
| Allowance for loan and lease losses | | $ | 52,822 | | | $ | 51,686 | | | $ | 50,224 | | | $ | 48,473 | | | $ | 46,390 | |
| Allowance for loan and lease losses as a percentage of total loans and leases | | | 1.12 | % | | | 1.12 | % | | | 1.13 | % | | | 1.11 | % | | | 1.08 | % |
| Net loan and lease charge-offs | | $ | 793 | | | $ | 720 | | | $ | 666 | | | $ | 1,676 | | | $ | 621 | |
| Net loan and lease charge-offs as a percentage of average loans and leases (annualized) | | | 0.07 | % | | | 0.06 | % | | | 0.06 | % | | | 0.16 | % | | | 0.06 | % |
| | | | | | | | | | |
| Capital Ratios: | | | | | | | | | | |
| Stockholders’ equity to total assets | | | 11.06 | % | | | 11.23 | % | | | 11.46 | % | | | 11.53 | % | | | 11.74 | % |
| Tangible stockholders’ equity to tangible assets (non-GAAP) | | | 8.63 | % | | | 8.73 | % | | | 8.87 | % | | | 8.88 | % | | | 9.03 | % |
| | | | | | | | | | |
| (1) Calculated on a fully tax-equivalent basis. |
| | | | | | | | | | |
| BROOKLINE BANCORP, INC. AND SUBSIDIARIES |
| Consolidated Balance Sheets (Unaudited) |
| | | | | | | | | | |
| | September 30, 2014 | | June 30, 2014 | | March 31, 2014 | | December 31, 2013 | | September 30, 2013 |
| ASSETS | | (In Thousands Except Share Data) |
| Cash and due from banks | | $ | 37,237 | | | $ | 58,962 | | | $ | 50,000 | | | $ | 37,148 | | | $ | 37,220 | |
| Short-term investments | | | 50,901 | | | | 20,771 | | | | 22,936 | | | | 55,357 | | | | 58,195 | |
| Total cash and cash equivalents | | | 88,138 | | | | 79,733 | | | | 72,936 | | | | 92,505 | | | | 95,415 | |
| Investment securities available-for-sale | | | 527,516 | | | | 528,586 | | | | 527,073 | | | | 492,428 | | | | 480,402 | |
| Investment securities held-to-maturity | | | 500 | | | | 500 | | | | 500 | | | | 500 | | | | 500 | |
| Total investment securities | | | 528,016 | | | | 529,086 | | | | 527,573 | | | | 492,928 | | | | 480,902 | |
| Loans and leases held-for-sale | | | 464 | | | | 13,890 | | | | 177 | | | | 13,372 | | | | 200 | |
| Loans and leases: | | | | | | | | | | |
| Commercial real estate loans: | | | | | | | | | | |
| Commercial real estate mortgage | | | 1,610,592 | | | | 1,545,483 | | | | 1,505,674 | | | | 1,461,985 | | | | 1,400,769 | |
| Multi-family mortgage | | | 630,852 | | | | 631,371 | | | | 632,122 | | | | 627,933 | | | | 599,601 | |
| Construction | | | 161,279 | | | | 137,731 | | | | 136,679 | | | | 113,705 | | | | 118,090 | |
| Total commercial real estate loans | | | 2,402,723 | | | | 2,314,585 | | | | 2,274,475 | | | | 2,203,623 | | | | 2,118,460 | |
| Commercial loans and leases: | | | | | | | | | | |
| Commercial | | | 495,712 | | | | 478,856 | | | | 437,957 | | | | 407,792 | | | | 409,376 | |
| Equipment financing | | | 576,541 | | | | 552,489 | | | | 529,670 | | | | 513,024 | | | | 513,345 | |
| Condominium association | | | 49,600 | | | | 45,608 | | | | 43,810 | | | | 44,794 | | | | 43,205 | |
| Total commercial loans and leases | | | 1,121,853 | | | | 1,076,953 | | | | 1,011,437 | | | | 965,610 | | | | 965,926 | |
| Indirect automobile loans | | | 353,263 | | | | 376,314 | | | | 373,965 | | | | 400,531 | | | | 440,949 | |
| Consumer loans: | | | | | | | | | | |
| Residential mortgage | | | 570,128 | | | | 550,814 | | | | 530,347 | | | | 528,185 | | | | 511,835 | |
| Home equity | | | 274,762 | | | | 270,203 | | | | 261,836 | | | | 257,461 | | | | 254,888 | |
| Other consumer | | | 13,299 | | | | 15,044 | | | | 9,937 | | | | 7,055 | | | | 7,419 | |
| Total consumer loans | | | 858,189 | | | | 836,061 | | | | 802,120 | | | | 792,701 | | | | 774,142 | |
| Total loans and leases | | | 4,736,028 | | | | 4,603,913 | | | | 4,461,997 | | | | 4,362,465 | | | | 4,299,477 | |
| Allowance for loan and lease losses | | | (52,822 | ) | | | (51,686 | ) | | | (50,224 | ) | | | (48,473 | ) | | | (46,390 | ) |
| Net loans and leases | | | 4,683,206 | | | | 4,552,227 | | | | 4,411,773 | | | | 4,313,992 | | | | 4,253,087 | |
| Restricted equity securities | | | 74,804 | | | | 71,446 | | | | 66,559 | | | | 66,559 | | | | 66,627 | |
| Premises and equipment, net of accumulated depreciation | | | 81,479 | | | | 82,166 | | | | 81,396 | | | | 80,505 | | | | 79,504 | |
| Deferred tax asset | | | 29,168 | | | | 27,799 | | | | 29,319 | | | | 31,710 | | | | 34,322 | |
| Goodwill | | | 137,890 | | | | 137,890 | | | | 137,890 | | | | 137,890 | | | | 137,890 | |
| Identified intangible assets, net of accumulated amortization | | | 14,371 | | | | 15,199 | | | | 16,026 | | | | 16,887 | | | | 18,015 | |
| Other real estate owned and repossessed assets | | | 2,463 | | | | 1,246 | | | | 1,290 | | | | 1,578 | | | | 1,319 | |
| Other assets | | | 77,966 | | | | 76,804 | | | | 73,846 | | | | 77,180 | | | | 68,948 | |
| Total assets | | $ | 5,717,965 | | | $ | 5,587,486 | | | $ | 5,418,785 | | | $ | 5,325,106 | | | $ | 5,236,229 | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | | | | | |
| Deposits: | | | | | | | | | | |
| Non-interest-bearing deposits: | | | | | | | | | | |
| Demand checking accounts | | $ | 705,604 | | | $ | 716,883 | | | $ | 682,383 | | | $ | 707,023 | | | $ | 667,181 | |
| Interest-bearing deposits: | | | | | | | | | | |
| NOW accounts | | | 220,766 | | | | 209,682 | | | | 212,877 | | | | 210,602 | | | | 204,164 | |
| Savings accounts | | | 532,790 | | | | 518,343 | | | | 517,327 | | | | 494,734 | | | | 512,393 | |
| Money market accounts | | | 1,522,612 | | | | 1,516,023 | | | | 1,517,290 | | | | 1,487,979 | | | | 1,403,881 | |
| Certificate of deposit accounts | | | 907,432 | | | | 900,216 | | | | 917,773 | | | | 934,668 | | | | 950,359 | |
| Total interest-bearing deposits | | | 3,183,600 | | | | 3,144,264 | | | | 3,165,267 | | | | 3,127,983 | | | | 3,070,797 | |
| Total deposits | | | 3,889,204 | | | | 3,861,147 | | | | 3,847,650 | | | | 3,835,006 | | | | 3,737,978 | |
| Borrowed funds: | | | | | | | | | | |
| Advances from the FHLBB | | | 1,027,211 | | | | 1,005,644 | | | | 855,915 | | | | 768,773 | | | | 784,740 | |
| Subordinated debentures and notes | | | 82,763 | | | | 9,201 | | | | 9,182 | | | | 9,163 | | | | 9,143 | |
| Other borrowed funds | | | 22,891 | | | | 26,159 | | | | 26,919 | | | | 34,619 | | | | 34,919 | |
| Total borrowed funds | | | 1,132,865 | | | | 1,041,004 | | | | 892,016 | | | | 812,555 | | | | 828,802 | |
| Mortgagors’ escrow accounts | | | 8,757 | | | | 8,359 | | | | 8,696 | | | | 7,889 | | | | 8,008 | |
| Accrued expenses and other liabilities | | | 50,430 | | | | 45,411 | | | | 45,703 | | | | 51,485 | | | | 42,820 | |
| Total liabilities | | | 5,081,256 | | | | 4,955,921 | | | | 4,794,065 | | | | 4,706,935 | | | | 4,617,608 | |
| Stockholders' equity: | | | | | | | | | | |
| Brookline Bancorp, Inc. stockholders’ equity: | | | | | | | | | | |
| Common stock, $0.01 par value; 200,000,000 shares authorized; 75,744,445 shares issued | | | 757 | | | | 757 | | | | 757 | | | | 757 | | | | 757 | |
| Additional paid-in capital | | | 616,997 | | | | 617,709 | | | | 617,978 | | | | 617,538 | | | | 616,968 | |
| Retained earnings, partially restricted | | | 78,980 | | | | 73,373 | | | | 69,361 | | | | 64,903 | | | | 63,210 | |
| Accumulated other comprehensive (loss) income | | | (4,681 | ) | | | (3,209 | ) | | | (5,936 | ) | | | (7,915 | ) | | | (4,900 | ) |
| Treasury stock, at cost; | | | | | | | | | | |
| 5,035,956 shares, 5,144,807 shares, 5,171,985 shares, 5,171,985 shares, and 5,154,327 shares, respectively | | | (58,228 | ) | | | (59,487 | ) | | | (59,826 | ) | | | (59,826 | ) | | | (59,576 | ) |
| Unallocated common stock held by ESOP; | | | | | | | | | | |
| 261,453 shares, 271,524 shares, 281,595 shares, 291,666 shares, and 302,229 shares, respectively | | | (1,425 | ) | | | (1,480 | ) | | | (1,535 | ) | | | (1,590 | ) | | | (1,648 | ) |
| Total Brookline Bancorp, Inc. stockholders’ equity | | | 632,400 | | | | 627,663 | | | | 620,799 | | | | 613,867 | | | | 614,811 | |
| Noncontrolling interest in subsidiary | | | 4,309 | | | | 3,902 | | | | 3,921 | | | | 4,304 | | | | 3,810 | |
| Total stockholders' equity | | | 636,709 | | | | 631,565 | | | | 624,720 | | | | 618,171 | | | | 618,621 | |
| Total liabilities and stockholders' equity | | $ | 5,717,965 | | | $ | 5,587,486 | | | $ | 5,418,785 | | | $ | 5,325,106 | | | $ | 5,236,229 | |
| | | | | | | | | | |
| BROOKLINE BANCORP, INC. AND SUBSIDIARIES |
| Consolidated Statements of Income (Unaudited) |
| |
| | Three Months Ended |
| | September 30, 2014 | | June 30, 2014 | | March 31, 2014 | | December 31, 2013 | | September 30, 2013 |
| | (In Thousands Except Share Data) |
| Interest and dividend income: | | | | | | | | | | |
| Loans and leases | | $ | 51,769 | | | $ | 50,433 | | | $ | 51,942 | | | $ | 48,573 | | | $ | 48,462 | |
| Debt securities | | | 2,312 | | | | 2,360 | | | | 2,259 | | | | 2,136 | | | | 2,041 | |
| Marketable and restricted equity securities | | | 520 | | | | 539 | | | | 449 | | | | 301 | | | | 298 | |
| Short-term investments | | | 15 | | | | 14 | | | | 44 | | | | 39 | | | | 22 | |
| Total interest and dividend income | | | 54,616 | | | | 53,346 | | | | 54,694 | | | | 51,049 | | | | 50,823 | |
| Interest expense: | | | | | | | | | | |
| Deposits | | | 4,248 | | | | 4,201 | | | | 4,291 | | | | 4,559 | | | | 4,637 | |
| Borrowed funds | | | 3,044 | | | | 2,711 | | | | 2,669 | | | | 2,716 | | | | 2,774 | |
| Total interest expense | | | 7,292 | | | | 6,912 | | | | 6,960 | | | | 7,275 | | | | 7,411 | |
| Net interest income | | | 47,324 | | | | 46,434 | | | | 47,734 | | | | 43,774 | | | | 43,412 | |
| Provision for credit losses | | | 2,034 | | | | 2,276 | | | | 2,443 | | | | 3,887 | | | | 2,748 | |
| Net interest income after provision for credit losses | | | 45,290 | | | | 44,158 | | | | 45,291 | | | | 39,887 | | | | 40,664 | |
| Non-interest income: | | | | | | | | | | |
| Deposit fees | | | 2,352 | | | | 2,204 | | | | 1,959 | | | | 2,188 | | | | 1,989 | |
| Loan fees | | | 601 | | | | 124 | | | | 436 | | | | 474 | | | | 296 | |
| Loss from investments in affordable housing projects | | | (543 | ) | | | (539 | ) | | | (504 | ) | | | (318 | ) | | | (558 | ) |
| Gain on sales of loans and leases held-for-sale | | | 538 | | | | 54 | | | | 602 | | | | 11 | | | | 116 | |
| Other | | | 1,298 | | | | 1,466 | | | | 1,121 | | | | 1,155 | | | | 1,592 | |
| (Loss)/gain on sales of securities, net | | | — | | | | (13 | ) | | | — | | | | 397 | | | | — | |
| (Loss)/gain on sale/disposals of premises and equipment, net | | | (2 | ) | | | (6 | ) | | | 1,510 | | | | — | | | | 21 | |
| Litigation settlement | | | 1,412 | | | | — | | | | — | | | | — | | | | — | |
| Total non-interest income | | | 5,656 | | | | 3,290 | | | | 5,124 | | | | 3,907 | | | | 3,456 | |
| Non-interest expense: | | | | | | | | | | |
| Compensation and employee benefits | | | 18,258 | | | | 17,295 | | | | 18,032 | | | | 16,675 | | | | 15,589 | |
| Occupancy | | | 3,334 | | | | 3,154 | | | | 4,405 | | | | 3,356 | | | | 3,312 | |
| Equipment and data processing | | | 4,193 | | | | 4,348 | | | | 4,377 | | | | 4,476 | | | | 4,061 | |
| Professional services | | | 1,001 | | | | 1,487 | | | | 1,727 | | | | 1,352 | | | | 1,329 | |
| FDIC insurance | | | 873 | | | | 847 | | | | 860 | | | | 724 | | | | 508 | |
| Advertising and marketing | | | 745 | | | | 776 | | | | 665 | | | | 807 | | | | 758 | |
| Amortization of identified intangible assets | | | 828 | | | | 827 | | | | 861 | | | | 1,127 | | | | 1,154 | |
| Other | | | 2,692 | | | | 2,488 | | | | 2,649 | | | | 2,803 | | | | 2,845 | |
| Total non-interest expense | | | 31,924 | | | | 31,222 | | | | 33,576 | | | | 31,320 | | | | 29,556 | |
| Income before provision for income taxes | | | 19,022 | | | | 16,226 | | | | 16,839 | | | | 12,474 | | | | 14,564 | |
| Provision for income taxes | | | 6,779 | | | | 5,774 | | | | 5,995 | | | | 4,325 | | | | 4,645 | |
| Net income before noncontrolling interest in subsidiary | | | 12,243 | | | | 10,452 | | | | 10,844 | | | | 8,149 | | | | 9,919 | |
| Less net income attributable to noncontrolling interest in subsidiary | | | 662 | | | | 476 | | | | 422 | | | | 495 | | | | 490 | |
| Net income attributable to Brookline Bancorp, Inc. | | $ | 11,581 | | | $ | 9,976 | | | $ | 10,422 | | | $ | 7,654 | | | $ | 9,429 | |
| Earnings per common share: | | | | | | | | | | |
| Basic | | $ | 0.17 | | | $ | 0.14 | | | $ | 0.15 | | | $ | 0.11 | | | $ | 0.14 | |
| Diluted | | $ | 0.17 | | | $ | 0.14 | | | $ | 0.15 | | | $ | 0.11 | | | $ | 0.13 | |
| Weighted average common shares outstanding during the period: | | | | | | | | | | |
| Basic | | | 69,989,909 | | | | 69,886,576 | | | | 69,875,473 | | | | 69,862,175 | | | | 69,830,953 | |
| Diluted | | | 70,088,987 | | | | 70,012,377 | | | | 69,983,999 | | | | 69,951,683 | | | | 69,913,765 | |
| Dividends declared per common share | | $ | 0.085 | | | $ | 0.085 | | | $ | 0.085 | | | $ | 0.085 | | | $ | 0.085 | |
| | | | | | | | | | |
| BROOKLINE BANCORP, INC. AND SUBSIDIARIES |
| Consolidated Statements of Income (Unaudited) |
| | | | |
| | Nine Months Ended September 30, |
| | 2014 | | 2013 |
| | (In Thousands Except Share Data) |
| Interest and dividend income: | | | | |
| Loans and leases | | $ | 154,144 | | | $ | 148,525 | |
| Debt securities | | | 6,931 | | | | 5,827 | |
| Marketable and restricted equity securities | | | 1,508 | | | | 911 | |
| Short-term investments | | | 73 | | | | 72 | |
| Total interest and dividend income | | | 162,656 | | | | 155,335 | |
| Interest expense: | | | | |
| Deposits | | | 12,740 | | | | 14,214 | |
| Borrowed funds | | | 8,424 | | | | 8,677 | |
| Total interest expense | | | 21,164 | | | | 22,891 | |
| Net interest income | | | 141,492 | | | | 132,444 | |
| Provision for credit losses | | | 6,753 | | | | 7,042 | |
| Net interest income after provision for credit losses | | | 134,739 | | | | 125,402 | |
| Non-interest income: | | | | |
| Deposit Fees | | | 6,515 | | | | 5,984 | |
| Loan Fees | | | 1,229 | | | | 1,127 | |
| Loss from investments in affordable housing projects | | | (1,586 | ) | | | (1,494 | ) |
| Gain on sales of loans and leases held-for-sale | | | 1,194 | | | | 597 | |
| Other | | | 3,817 | | | | 3,708 | |
| Loss on sales of securities, net | | | (13 | ) | | | — | |
| Gain on sale/disposals of premises and equipment, net | | | 1,502 | | | | — | |
| Litigation settlement | | | 1,412 | | | | — | |
| Total non-interest income | | | 14,070 | | | | 9,922 | |
| Non-interest expense: | | | | |
| Compensation and employee benefits | | | 53,585 | | | | 48,586 | |
| Occupancy | | | 10,893 | | | | 9,260 | |
| Equipment and data processing | | | 12,918 | | | | 12,423 | |
| Professional services | | | 4,215 | | | | 4,343 | |
| FDIC insurance | | | 2,580 | | | | 2,378 | |
| Advertising and marketing | | | 2,186 | | | | 2,196 | |
| Amortization of identified intangible assets | | | 2,516 | | | | 3,496 | |
| Other | | | 7,829 | | | | 8,462 | |
| Total non-interest expense | | | 96,722 | | | | 91,144 | |
| Income before provision for income taxes | | | 52,087 | | | | 44,180 | |
| Provision for income taxes | | | 18,548 | | | | 15,156 | |
| Net income before noncontrolling interest in subsidiary | | | 33,539 | | | | 29,024 | |
| Less net income attributable to noncontrolling interest in subsidiary | | | 1,560 | | | | 1,292 | |
| Net income attributable to Brookline Bancorp, Inc. | | $ | 31,979 | | | $ | 27,732 | |
| Earnings per common share: | | | | |
| Basic | | $ | 0.46 | | | $ | 0.40 | |
| Diluted | | $ | 0.46 | | | $ | 0.40 | |
| Weighted average common shares outstanding during the period: | | | | |
| Basic | | | 69,918,248 | | | | 69,789,737 | |
| Diluted | | | 70,029,383 | | | | 69,860,722 | |
| Dividends declared per common share | | $ | 0.255 | | | $ | 0.255 | |
| | | | |
| BROOKLINE BANCORP, INC. AND SUBSIDIARIES |
| Asset Quality Analysis (Unaudited) |
| | | | | | | | | | |
| | At and for the Three Months Ended |
| | September 30,
2014 | | June 30,
2014 | | March 31,
2014 | | December 31,
2013 | | September 30,
2013 |
| | (Dollars in Thousands) |
| NONPERFORMING ASSETS: | | | | | | | | | | |
| Loans and leases accounted for on a nonaccrual basis: | | | | | | | | | | |
| Commercial real estate mortgage | | $ | 3,174 | | | $ | 3,011 | | | $ | 1,814 | | | $ | 1,098 | | | $ | 1,137 | |
| Multi-family mortgage | | | 299 | | | | — | | | | — | | | | — | | | | 664 | |
| Construction | | | — | | | | — | | | | — | | | | — | | | | — | |
| Total commercial real estate loans | | | 3,473 | | | | 3,011 | | | | 1,814 | | | | 1,098 | | | | 1,801 | |
| | | | | | | | | | |
| Commercial | | | 6,071 | | | | 6,383 | | | | 6,350 | | | | 6,148 | | | | 4,747 | |
| Equipment financing | | | 2,756 | | | | 3,251 | | | | 4,633 | | | | 4,115 | | | | 4,116 | |
| Condominium association | | | — | | | | — | | | | — | | | | 1 | | | | 3 | |
| Total commercial loans and leases | | | 8,827 | | | | 9,634 | | | | 10,983 | | | | 10,264 | | | | 8,866 | |
| | | | | | | | | | |
| Indirect automobile loans | | | 474 | | | | 325 | | | | 378 | | | | 259 | | | | 195 | |
| | | | | | | | | | |
| Residential mortgage | | | 2,636 | | | | 2,384 | | | | 3,138 | | | | 2,875 | | | | 2,738 | |
| Home equity | | | 1,865 | | | | 1,771 | | | | 1,799 | | | | 1,987 | | | | 1,801 | |
| Other consumer | | | 47 | | | | 36 | | | | 28 | | | | 18 | | | | 18 | |
| Total consumer loans | | | 4,548 | | | | 4,191 | | | | 4,965 | | | | 4,880 | | | | 4,557 | |
| | | | | | | | | | |
| Total nonaccrual loans and leases | | | 17,322 | | | | 17,161 | | | | 18,140 | | | | 16,501 | | | | 15,419 | |
| | | | | | | | | | |
| Other real estate owned | | | 1,536 | | | | 675 | | | | 855 | | | | 577 | | | | 726 | |
| Other repossessed assets | | | 927 | | | | 571 | | | | 435 | | | | 1,001 | | | | 593 | |
| Total nonperforming assets | | $ | 19,785 | | | $ | 18,407 | | | $ | 19,430 | | | $ | 18,079 | | | $ | 16,738 | |
| | | | | | | | | | |
| Loans and leases past due greater than 90 days and still accruing | | $ | 3,919 | | | $ | 6,653 | | | $ | 7,774 | | | $ | 10,913 | | | $ | 13,548 | |
| | | | | | | | | | |
| Troubled debt restructurings on accrual | | | 15,174 | | | | 12,396 | | | | 11,532 | | | | 12,759 | | | | 12,158 | |
| Troubled debt restructurings on nonaccrual | | | 5,609 | | | | 5,992 | | | | 6,764 | | | | 5,589 | | | | 5,905 | |
| Total troubled debt restructurings | | $ | 20,783 | | | $ | 18,388 | | | $ | 18,296 | | | $ | 18,348 | | | $ | 18,063 | |
| | | | | | | | | | |
| Nonperforming loans and leases as a percentage of total loans and leases | | | 0.37 | % | | | 0.37 | % | | | 0.41 | % | | | 0.38 | % | | | 0.36 | % |
| Nonperforming assets as a percentage of total assets | | | 0.35 | % | | | 0.33 | % | | | 0.36 | % | | | 0.34 | % | | | 0.32 | % |
| | | | | | | | | | |
| PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES: | | | | | | | | | | |
| Allowance for loan and lease losses at beginning of period | | $ | 51,686 | | | $ | 50,224 | | | $ | 48,473 | | | $ | 46,390 | | | $ | 44,281 | |
| Charge-offs | | | (1,136 | ) | | | (1,196 | ) | | | (1,050 | ) | | | (2,193 | ) | | | (903 | ) |
| Recoveries | | | 343 | | | | 476 | | | | 384 | | | | 517 | | | | 282 | |
| Net charge-offs | | | (793 | ) | | | (720 | ) | | | (666 | ) | | | (1,676 | ) | | | (621 | ) |
| Provision for loan and lease losses | | | 1,929 | | | | 2,182 | | | | 2,417 | | | | 3,759 | | | | 2,730 | |
| Allowance for loan and lease losses at end of period | | $ | 52,822 | | | $ | 51,686 | | | $ | 50,224 | | | $ | 48,473 | | | $ | 46,390 | |
| | | | | | | | | | |
| Allowance for loan and lease losses as a percentage of total loans and leases | | | 1.12 | % | | | 1.12 | % | | | 1.13 | % | | | 1.11 | % | | | 1.08 | % |
| Allowance for loan and lease losses related to originated loans and leases as a percentage of originated loans and leases | | | 1.26 | % | | | 1.31 | % | | | 1.33 | % | | | 1.32 | % | | | 1.31 | % |
| | | | | | | | | | |
| NET CHARGE-OFFS: | | | | | | | | | | |
| Commercial real estate loans | | $ | 64 | | | $ | — | | | $ | — | | | $ | (9 | ) | | $ | 7 | |
| Commercial loans and leases | | | 348 | | | | 578 | | | | 300 | | | | 803 | | | | 157 | |
| Indirect automobile loans | | | 208 | | | | 55 | | | | 185 | | | | 419 | | | | 396 | |
| Consumer loans | | | 173 | | | | 87 | | | | 181 | | | | 463 | | | | 61 | |
| Total net charge-offs | | $ | 793 | | | $ | 720 | | | $ | 666 | | | $ | 1,676 | | | $ | 621 | |
| | | | | | | | | | |
| Net loan and lease charge-offs as a percentage of average loans and leases (annualized) | | | 0.07 | % | | | 0.06 | % | | | 0.06 | % | | | 0.16 | % | | | 0.06 | % |
| | | | | | | | | | | | | | | | | | | | |
| BROOKLINE BANCORP, INC. AND SUBSIDIARIES |
| Average Yields / Costs (Unaudited) |
| | | | | | | | | | | | | | | | | | |
| | Three Months Ended |
| | September 30, 2014 | | June 30, 2014 | | September 30, 2013 |
| | Average Balance | | Interest (1) | | Average
Yield/ Cost | | Average Balance | | Interest (1) | | Average
Yield/ Cost | | Average Balance | | Interest (1) | | Average
Yield/ Cost |
| | (Dollars in Thousands) |
| Assets: | | | | | | | | | | | | | | | | | | |
| Interest-earning assets: | | | | | | | | | | | | | | | | | | |
| Investments: | | | | | | | | | | | | | | | | | | |
| Debt securities (2) | | $ | 523,853 | | | $ | 2,312 | | 1.77 | % | | $ | 527,411 | | | $ | 2,360 | | 1.79 | % | | $ | 475,506 | | | $ | 2,047 | | 1.72 | % |
| Marketable and restricted equity securities (2) | | | 74,035 | | | | 567 | | 3.05 | % | | | 68,543 | | | | 602 | | 3.52 | % | | | 66,995 | | | | 346 | | 2.06 | % |
| Short-term investments | | | 42,421 | | | | 15 | | 0.14 | % | | | 36,850 | | | | 14 | | 0.16 | % | | | 69,272 | | | | 22 | | 0.13 | % |
| Total investments | | | 640,309 | | | | 2,894 | | 1.81 | % | | | 632,804 | | | | 2,976 | | 1.88 | % | | | 611,773 | | | | 2,415 | | 1.58 | % |
| Loans and Leases: | | | | | | | | | | | | | | | | | | |
| Commercial real estate loans (3) | | | 2,357,921 | | | | 25,984 | | 4.37 | % | | | 2,288,018 | | | | 25,395 | | 4.42 | % | | | 2,088,450 | | | | 24,021 | | 4.56 | % |
| Commercial loans (3) | | | 544,440 | | | | 5,458 | | 3.94 | % | | | 504,572 | | | | 5,246 | | 4.12 | % | | | 442,052 | | | | 4,493 | | 3.99 | % |
| Equipment financing (3) | | | 563,918 | | | | 9,664 | | 6.84 | % | | | 541,029 | | | | 9,155 | | 6.77 | % | | | 489,127 | | | | 8,343 | | 6.79 | % |
| Indirect automobile loans (3) | | | 371,123 | | | | 2,929 | | 3.13 | % | | | 374,489 | | | | 3,032 | | 3.25 | % | | | 460,927 | | | | 4,172 | | 3.59 | % |
| Residential mortgage loans (3) | | | 570,505 | | | | 5,087 | | 3.54 | % | | | 532,310 | | | | 4,918 | | 3.70 | % | | | 507,616 | | | | 4,866 | | 3.81 | % |
| Other consumer loans (3) | | | 284,206 | | | | 2,818 | | 3.93 | % | | | 277,802 | | | | 2,833 | | 4.09 | % | | | 262,442 | | | | 2,762 | | 4.17 | % |
| Total loans and leases | | | 4,692,113 | | | | 51,940 | | 4.39 | % | | | 4,518,220 | | | | 50,579 | | 4.46 | % | | | 4,250,614 | | | | 48,657 | | 4.54 | % |
| Total interest-earning assets | | | 5,332,422 | | | | 54,834 | | 4.08 | % | | | 5,151,024 | | | | 53,555 | | 4.15 | % | | | 4,862,387 | | | | 51,072 | | 4.16 | % |
| Allowance for loan and lease losses | | | (52,423 | ) | | | | | | | (50,809 | ) | | | | | | | (44,959 | ) | | | | |
| Non-interest-earning assets | | | 373,893 | | | | | | | | 373,235 | | | | | | | | 382,155 | | | | | |
| Total assets | | $ | 5,653,892 | | | | | | | $ | 5,473,450 | | | | | | | $ | 5,199,583 | | | | | |
| | | | | | | | | | | | | | | | | | |
| Liabilities and Stockholders' Equity: | | | | | | | | | | | | | | | | | | |
| Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | | | | | | | |
| NOW accounts | | $ | 211,940 | | | $ | 43 | | 0.08 | % | | $ | 208,859 | | | $ | 42 | | 0.08 | % | | $ | 198,643 | | | $ | 42 | | 0.08 | % |
| Savings accounts | | | 513,912 | | | | 299 | | 0.23 | % | | | 523,773 | | | | 303 | | 0.23 | % | | | 512,205 | | | | 315 | | 0.24 | % |
| Money market accounts | | | 1,534,552 | | | | 1,957 | | 0.51 | % | | | 1,528,959 | | | | 1,936 | | 0.51 | % | | | 1,377,495 | | | | 2,040 | | 0.59 | % |
| Certificates of deposit | | | 900,751 | | | | 1,949 | | 0.86 | % | | | 901,272 | | | | 1,920 | | 0.85 | % | | | 957,494 | | | | 2,240 | | 0.93 | % |
| Total interest-bearing deposits | | | 3,161,155 | | | | 4,248 | | 0.53 | % | | | 3,162,863 | | | | 4,201 | | 0.53 | % | | | 3,045,837 | | | | 4,637 | | 0.60 | % |
| Borrowings | | | | | | | | | | | | | | | | | | |
| Advances from the FHLBB | | | 1,036,190 | | | | 2,740 | | 1.05 | % | | | 892,770 | | | | 2,602 | | 1.17 | % | | | 772,067 | | | | 2,666 | | 1.37 | % |
| Subordinated debentures and notes | | | 21,257 | | | | 292 | | 5.45 | % | | | 9,189 | | | | 99 | | 4.32 | % | | | 9,130 | | | | 82 | | 3.60 | % |
| Other borrowed funds | | | 25,385 | | | | 12 | | 0.18 | % | | | 25,938 | | | | 10 | | 0.16 | % | | | 35,196 | | | | 26 | | 0.28 | % |
| Total borrowings | | | 1,082,832 | | | | 3,044 | | 1.12 | % | | | 927,897 | | | | 2,711 | | 1.17 | % | | | 816,393 | | | | 2,774 | | 1.35 | % |
| Total interest-bearing liabilities | | | 4,243,987 | | | | 7,292 | | 0.68 | % | | | 4,090,760 | | | | 6,912 | | 0.68 | % | | | 3,862,230 | | | | 7,411 | | 0.76 | % |
| Non-interest-bearing liabilities: | | | | | | | | | | | | | | | | | | |
| Demand checking accounts | | | 725,110 | | | | | | | | 712,961 | | | | | | | | 675,907 | | | | | |
| Other non-interest-bearing liabilities | | | 48,236 | | | | | | | | 39,219 | | | | | | | | 44,832 | | | | | |
| Total liabilities | | | 5,017,333 | | | | | | | | 4,842,940 | | | | | | | | 4,582,969 | | | | | |
| Brookline Bancorp, Inc. stockholders’ equity | | | 632,506 | | | | | | | | 626,371 | | | | | | | | 612,866 | | | | | |
| Noncontrolling interest in subsidiary | | | 4,053 | | | | | | | | 4,139 | | | | | | | | 3,748 | | | | | |
| Total liabilities and equity | | $ | 5,653,892 | | | | | | | $ | 5,473,450 | | | | | | | $ | 5,199,583 | | | | | |
| Net interest income (tax-equivalent basis) /Interest-rate spread (4) | | | | | 47,542 | | 3.40 | % | | | | | 46,643 | | 3.47 | % | | | | | 43,661 | | 3.40 | % |
| Less adjustment of tax-exempt income | | | | | 218 | | | | | | | 209 | | | | | | | 249 | | |
| Net interest income | | | | $ | 47,324 | | | | | | $ | 46,434 | | | | | | $ | 43,412 | | |
| Net interest margin (5) | | | | | | 3.54 | % | | | | | | 3.61 | % | | | | | | 3.56 | % |
| (1) Tax-exempt income on debt securities, equity securities and revenue bonds included in commercial real estate loans is included on a tax-equivalent basis. |
| (2) Average balances include unrealized gains (losses) on investment securities. Dividend payments may not be consistent and average yield on equity securities may vary from month to month. |
| (3) Loans on nonaccrual status are included in the average balances. |
| (4) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities. |
| (5) Net interest margin represents net interest income (tax-equivalent basis) divided by average interest-earning assets. |
| |
| BROOKLINE BANCORP, INC. AND SUBSIDIARIES |
| Average Yields / Costs (Unaudited) |
| | | | | | | | | | | | |
| | Nine Months Ended |
| | September 30, 2014 | | September 30, 2013 |
| | Average Balance | | Interest (1) | | Average
Yield/ Cost | | Average Balance | | Interest (1) | | Average
Yield/ Cost |
| | (Dollars in Thousands) |
| Assets: | | | | | | | | | | | | |
| Interest-earning assets: | | | | | | | | | | | | |
| Investments: | | | | | | | | | | | | |
| Debt securities (2) | | $ | 518,031 | | | $ | 6,935 | | 1.79 | % | | $ | 478,110 | | | $ | 5,841 | | 1.63 | % |
| Marketable and restricted equity securities (2) | | | 69,869 | | | | 1,666 | | 3.18 | % | | | 67,506 | | | | 1,056 | | 2.09 | % |
| Short-term investments | | | 41,689 | | | | 73 | | 0.24 | % | | | 58,872 | | | | 72 | | 0.16 | % |
| Total investments | | | 629,589 | | | | 8,674 | | 1.84 | % | | | 604,488 | | | | 6,969 | | 1.54 | % |
| Loans and Leases: | | | | | | | | | | | | |
| Commercial real estate loans (3) | | | 2,291,952 | | | | 77,081 | | 4.46 | % | | | 2,041,834 | | | | 72,190 | | 4.69 | % |
| Commercial loans (3) | | | 507,612 | | | | 15,397 | | 4.01 | % | | | 424,904 | | | | 15,796 | | 4.91 | % |
| Equipment financing (3) | | | 543,691 | | | | 29,856 | | 7.33 | % | | | 465,217 | | | | 24,418 | | 7.01 | % |
| Indirect automobile loans (3) | | | 376,765 | | | | 9,225 | | 3.27 | % | | | 493,898 | | | | 13,611 | | 3.68 | % |
| Residential mortgage loans (3) | | | 545,275 | | | | 14,814 | | 3.63 | % | | | 509,728 | | | | 15,132 | | 3.97 | % |
| Other consumer loans (3) | | | 276,466 | | | | 8,230 | | 3.98 | % | | | 263,762 | | | | 7,886 | | 4.00 | % |
| Total loans and leases | | | 4,541,761 | | | | 154,603 | | 4.53 | % | | | 4,199,343 | | | | 149,033 | | 4.72 | % |
| Total interest-earning assets | | | 5,171,350 | | | | 163,277 | | 4.20 | % | | | 4,803,831 | | | | 156,002 | | 4.32 | % |
| Allowance for loan and lease losses | | | (50,785 | ) | | | | | | | (43,146 | ) | | | | |
| Non-interest-earning assets | | | 366,994 | | | | | | | | 375,074 | | | | | |
| Total assets | | $ | 5,487,559 | | | | | | | $ | 5,135,759 | | | | | |
| | | | | | | | | | | | |
| Liabilities and Stockholders' Equity: | | | | | | | | | | | | |
| Interest-bearing liabilities: | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | |
| NOW accounts | | $ | 209,029 | | | $ | 126 | | 0.08 | % | | $ | 194,775 | | | $ | 128 | | 0.09 | % |
| Savings accounts | | | 515,433 | | | | 905 | | 0.23 | % | | | 511,672 | | | | 975 | | 0.25 | % |
| Money market accounts | | | 1,523,269 | | | | 5,852 | | 0.51 | % | | | 1,336,093 | | | | 6,136 | | 0.61 | % |
| Certificates of deposit | | | 909,647 | | | | 5,857 | | 0.86 | % | | | 980,628 | | | | 6,975 | | 0.95 | % |
| Total interest-bearing deposits | | | 3,157,378 | | | | 12,740 | | 0.54 | % | | | 3,023,168 | | | | 14,214 | | 0.63 | % |
| Borrowings | | | | | | | | | | | | |
| Advances from the FHLBB | | | 911,748 | | | | 7,873 | | 1.15 | % | | | 761,927 | | | | 8,303 | | 1.46 | % |
| Subordinated debentures and notes | | | 13,249 | | | | 490 | | 4.94 | % | | | 9,682 | | | | 337 | | 4.64 | % |
| Other borrowed funds | | | 26,849 | | | | 61 | | 0.30 | % | | | 41,259 | | | | 37 | | 0.12 | % |
| Total borrowings | | | 951,846 | | | | 8,424 | | 1.18 | % | | | 812,868 | | | | 8,677 | | 1.43 | % |
| Total interest-bearing liabilities | | | 4,109,224 | | | | 21,164 | | 0.69 | % | | | 3,836,036 | | | | 22,891 | | 0.80 | % |
| Non-interest-bearing liabilities: | | | | | | | | | | | | |
| Demand checking accounts | | | 702,411 | | | | | | | | 641,749 | | | | | |
| Other non-interest-bearing liabilities | | | 44,858 | | | | | | | | 38,811 | | | | | |
| Total liabilities | | | 4,856,493 | | | | | | | | 4,516,596 | | | | | |
| Brookline Bancorp, Inc. stockholders’ equity | | | 626,920 | | | | | | | | 615,519 | | | | | |
| Noncontrolling interest in subsidiary | | | 4,146 | | | | | | | | 3,644 | | | | | |
| Total liabilities and equity | | $ | 5,487,559 | | | | | | | $ | 5,135,759 | | | | | |
| Net interest income (tax-equivalent basis) /Interest-rate spread (4) | | | | | 142,113 | | 3.51 | % | | | | | 133,111 | | 3.52 | % |
| Less adjustment of tax-exempt income | | | | | 621 | | | | | | | 667 | | |
| Net interest income | | | | $ | 141,492 | | | | | | $ | 132,444 | | |
| Net interest margin (5) | | | | | | 3.65 | % | | | | | | 3.68 | % |
| (1) Tax-exempt income on debt securities, equity securities and revenue bonds included in commercial real estate loans is included on a tax-equivalent basis. |
| (2) Average balances include unrealized gains (losses) on investment securities. Dividend payments may not be consistent and average yield on equity securities may vary from month to month. |
| (3) Loans on nonaccrual status are included in the average balances. |
| (4) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities. |
| (5) Net interest margin represents net interest income (tax-equivalent basis) divided by average interest-earning assets. |
| |
| BROOKLINE BANCORP, INC. AND SUBSIDIARIES |
| Non-GAAP Financial Information (Unaudited) |
| | | | | | | | |
| | At and for the Three Months Ended |
| | September 30,
2014 | | June 30,
2014 | | March 31,
2014 | | December 31,
2013 | | September 30,
2013 |
| | (Dollars in Thousands) |
| | | | | | | | | | |
| Net income, as reported | | $ | 11,581 | | | $ | 9,976 | | | $ | 10,422 | | | $ | 7,654 | | | $ | 9,429 | |
| | | | | | | | | | |
| Average total assets | | $ | 5,653,892 | | | $ | 5,473,450 | | | $ | 5,361,717 | | | $ | 5,287,482 | | | $ | 5,199,583 | |
| Less: Average goodwill and average identified intangible assets, net | | | 152,755 | | | | 153,577 | | | | 154,447 | | | | 155,439 | | | | 156,607 | |
| Average tangible assets | | $ | 5,501,137 | | | $ | 5,319,873 | | | $ | 5,207,270 | | | $ | 5,132,043 | | | $ | 5,042,976 | |
| | | | | | | | | | |
| Return on average tangible assets (annualized) | | | 0.84 | % | | | 0.75 | % | | | 0.80 | % | | | 0.60 | % | | | 0.75 | % |
| | | | | | | | | | |
| Average total stockholders’ equity | | $ | 632,506 | | | $ | 626,371 | | | $ | 621,764 | | | $ | 618,385 | | | $ | 612,866 | |
| Less: Average goodwill and average identified intangible assets, net | | | 152,755 | | | | 153,577 | | | | 154,447 | | | | 155,439 | | | | 156,607 | |
| Average tangible stockholders’ equity | | $ | 479,751 | | | $ | 472,794 | | | $ | 467,317 | | | $ | 462,946 | | | $ | 456,259 | |
| | | | | | | | | | |
| Return on average tangible stockholders’ equity (annualized) | | | 9.66 | % | | | 8.44 | % | | | 8.92 | % | | | 6.61 | % | | | 8.27 | % |
| | | | | | | | | | |
| Brookline Bancorp, Inc. stockholders’ equity | | $ | 632,400 | | | $ | 627,663 | | | $ | 620,799 | | | $ | 613,867 | | | $ | 614,811 | |
| Less: | | | | | | | | | | |
| Goodwill | | | 137,890 | | | | 137,890 | | | | 137,890 | | | | 137,890 | | | | 137,890 | |
| Identified intangible assets, net | | | 14,371 | | | | 15,199 | | | | 16,026 | | | | 16,887 | | | | 18,015 | |
| Tangible stockholders' equity | | $ | 480,139 | | | $ | 474,574 | | | $ | 466,883 | | | $ | 459,090 | | | $ | 458,906 | |
| | | | | | | | | | |
| Total assets | | $ | 5,717,965 | | | $ | 5,587,486 | | | $ | 5,418,785 | | | $ | 5,325,106 | | | $ | 5,236,229 | |
| Less: | | | | | | | | | | |
| Goodwill | | | 137,890 | | | | 137,890 | | | | 137,890 | | | | 137,890 | | | | 137,890 | |
| Identified intangible assets, net | | | 14,371 | | | | 15,199 | | | | 16,026 | | | | 16,887 | | | | 18,015 | |
| Tangible assets | | $ | 5,565,704 | | | $ | 5,434,397 | | | $ | 5,264,869 | | | $ | 5,170,329 | | | $ | 5,080,324 | |
| | | | | | | | | | |
| Tangible stockholders’ equity to tangible assets | | | 8.63 | % | | | 8.73 | % | | | 8.87 | % | | | 8.88 | % | | | 9.03 | % |
| | | | | | | | | | |
| Tangible stockholders' equity | | $ | 480,139 | | | $ | 474,574 | | | $ | 466,883 | | | $ | 459,090 | | | $ | 458,906 | |
| | | | | | | | | | |
| Number of common shares issued | | | 75,744,445 | | | | 75,744,445 | | | | 75,744,445 | | | | 75,744,445 | | | | 75,744,445 | |
| Less: | | | | | | | | | | |
| Treasury shares | | | 5,035,956 | | | | 5,144,807 | | | | 5,171,985 | | | | 5,171,985 | | | | 5,154,327 | |
| Unallocated ESOP shares | | | 261,453 | | | | 271,524 | | | | 281,595 | | | | 291,666 | | | | 302,229 | |
| Unvested restricted shares | | | 427,952 | | | | 434,459 | | | | 408,651 | | | | 409,068 | | | | 429,818 | |
| Number of common shares outstanding | | | 70,019,084 | | | | 69,893,655 | | | | 69,882,214 | | | | 69,871,726 | | | | 69,858,071 | |
| | | | | | | | | | |
| Tangible book value per common share | | $ | 6.86 | | | $ | 6.79 | | | $ | 6.68 | | | $ | 6.57 | | | $ | 6.57 | |
| | | | | | | | | | |
| Allowance for loan and lease losses | | $ | 52,822 | | | $ | 51,686 | | | $ | 50,224 | | | $ | 48,473 | | | $ | 46,390 | |
| Less: | | | | | | | | | | |
| Allowance for acquired loans and leases losses | | | 1,933 | | | | 1,247 | | | | 1,403 | | | | 1,629 | | | | 1,278 | |
| Allowance for originated loan and lease losses | | $ | 50,889 | | | $ | 50,439 | | | $ | 48,821 | | | $ | 46,844 | | | $ | 45,112 | |
| | | | | | | | | | |
| Total loans and leases | | $ | 4,736,028 | | | $ | 4,603,913 | | | $ | 4,461,997 | | | $ | 4,362,465 | | | $ | 4,299,477 | |
| Less: | | | | | | | | | | |
| Total acquired loans and leases | | | 709,404 | | | | 747,106 | | | | 779,747 | | | | 815,412 | | | | 865,708 | |
| Total originated loans and leases | | $ | 4,026,624 | | | $ | 3,856,807 | | | $ | 3,682,250 | | | $ | 3,547,053 | | | $ | 3,433,769 | |
| | | | | | | | | | |
| Allowance for loan and lease losses related to originated loans and leases as a percentage of originated loans and leases | | | 1.26 | % | | | 1.31 | % | | | 1.33 | % | | | 1.32 | % | | | 1.31 | % |
CONTACT:
Brookline Bancorp, Inc.
Carl M. Carlson, 617-425-5331
Chief Financial Officer and Treasurer
ccarlson@brkl.com
