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CST: 20/11/2019 17:12:00   

Brookline Bancorp Announces Second Quarter Results Net Income of $20.5 million, EPS of $0.26

119 Days ago

BOSTON, July 24, 2019 (GLOBE NEWSWIRE) -- Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced net income of $20.5 million, or $0.26 per basic and diluted share, for the second quarter of 2019, compared to $22.5 million, or $0.28 per basic and diluted share, for the first quarter of 2019, and $20.8 million, or $0.26 per basic and diluted share, for the second quarter of 2018.

Paul Perrault, President and Chief Executive Officer of the Company commented on the second quarter earnings, "We are pleased to report another strong quarter to our stockholders. The Company continues to have broad-based loan growth, solid returns, and strong asset quality. Brookline Bancorp and its employees continue to execute on our strategy of high performance for both our customers and our stockholders."

BALANCE SHEET

Total assets at June 30, 2019 increased $117.9 million to $7.6 billion from $7.5 billion at March 31, 2019, and increased $351.3 million from $7.3 billion at June 30, 2018, primarily driven by growth in the loan portfolio. At June 30, 2019, total loans and leases were $6.5 billion, representing an increase of $117.1 million from March 31, 2019, and an increase of $334.1 million from June 30, 2018, primarily driven by growth in the commercial real estate portfolio.

In the second quarter the Company continued to redirect cash flows from the investment portfolio to fund loan demand. Investment securities at June 30, 2019 decreased $16.3 million to $590.8 million, comprising 7.74 percent of total assets, as compared to $607.1 million, or 8.07 percent of total assets, at March 31, 2019, and decreased approximately $84.5 million from $675.3 million, or 9.27 percent of total assets, at June 30, 2018.

Total deposits at June 30, 2019 increased $1.9 million from March 31, 2019 to $5.6 billion and increased $424.2 million from $5.2 billion at June 30, 2018 driven primarily by growth in certificates of deposit.

Total borrowed funds at June 30, 2019 increased $64.8 million to $930.8 million from $866.0 million at March 31, 2019 and decreased $180.2 million from $1.1 billion at June 30, 2018.

The ratio of stockholders’ equity to total assets was 12.03 percent at June 30, 2019, as compared to 11.98 percent at March 31, 2019, and 12.04 percent at June 30, 2018. The ratio of tangible stockholders’ equity to tangible assets was 10.08 percent at June 30, 2019, as compared to 9.99 percent at March 31, 2019, and 9.97 percent at June 30, 2018. Tangible book value per share increased $0.23 from $9.22 at March 31, 2019 to $9.45 at June 30, 2019, compared to $8.85 at June 30, 2018.

NET INTEREST INCOME

Net interest income increased $0.1 million to $63.1 million during the second quarter of 2019 from $63.0 million at the quarter ended March 31, 2019. The net interest margin decreased 9 basis points to 3.55 percent for the three months ended June 30, 2019.

NON-INTEREST INCOME

Non-interest income for the quarter ended June 30, 2019 increased $0.9 million to $7.5 million from $6.6 million for the quarter ended March 31, 2019. The increase was primarily driven by increases of $0.2 million in deposit fees, $0.2 million in gain on securities, $0.3 million in gain on sales of loans and leases, and $0.2 million in other non-interest income.

PROVISION FOR CREDIT LOSSES

The Company recorded a provision for credit losses of $3.8 million for the quarter ended June 30, 2019, compared to $1.4 million for the quarter ended March 31, 2019. The higher provision for credit losses is a result of strong loan growth and net higher charge-offs during the quarter.

Total net charge-offs for the second quarter of 2019 were $3.1 million compared to $2.1 million in the first quarter of 2019. The $3.1 million in net charge-offs had previously established specific reserves of $1.0 million versus first quarter net charge-offs of $2.1 million which had previously established reserves of $1.0 million. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis increased to 19 basis points for the second quarter of 2019 from 13 basis points for the first quarter of 2019.

The allowance for loan and lease losses represented 0.90 percent of total loans and leases at June 30, 2019, compared to 0.91 percent at March 31, 2019, and 0.94 percent at June 30, 2018. The allowance for loan and lease losses related to originated loans and leases represented 0.92 percent of originated loans and leases at June 30, 2019, compared to 0.93 percent at March 31, 2019, and 0.98 percent at June 30, 2018.

NON-INTEREST EXPENSE

Non-interest expense for the quarter ended June 30, 2019 increased $0.7 million to $39.6 million from $38.9 million for the quarter ended March 31, 2019. The increase was primarily driven by increases of $0.2 million in compensation and employee benefits expense, $0.2 million in FDIC insurance, and $0.5 million in other non-interest expense, partially offset by a decrease of $0.2 million in occupancy expense.

PROVISION FOR INCOME TAXES

The effective tax rate was 24.9 percent and 24.1 percent for the three and six months ended June 30, 2019 compared to 23.4 percent for the three months ended March 31, 2019.

RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

The annualized return on average assets decreased to 1.08 percent during the second quarter of 2019 from 1.21 percent for the first quarter of 2019. The annualized return on average tangible assets decreased to 1.11 percent for the second quarter of 2019 from 1.24 percent for the first quarter of 2019.

The annualized return on average stockholders' equity decreased to 8.98 percent during the second quarter of 2019 from 10.14 percent for the first quarter of 2019. The annualized return on average tangible stockholders’ equity decreased to 10.98 percent for the second quarter of 2019 from 12.48 percent for the first quarter of 2019.

ASSET QUALITY

The ratio of nonperforming loans and leases to total loans and leases was 0.33 percent at June 30, 2019 as compared to 0.36 percent at March 31, 2019. Nonperforming loans and leases decreased $1.5 million to $21.3 million at June 30, 2019 from $22.8 million at March 31, 2019. The ratio of nonperforming assets to total assets was 0.30 percent at June 30, 2019 as compared to 0.36 percent at March 31, 2019. Nonperforming assets decreased $3.4 million to $23.3 million at June 30, 2019 from $26.7 million at March 31, 2019.

DIVIDEND DECLARED

The Company’s Board of Directors approved a dividend of $0.11 per share for the quarter ended June 30, 2019. The dividend will be paid on August 23, 2019 to stockholders of record on August 9, 2019.

CONFERENCE CALL

The Company will conduct a conference call/webcast at 1:30 PM Eastern Daylight Time on Thursday, July 25, 2019 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 10132476. 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 $7.6 billion in assets and branch locations in Massachusetts and Rhode Island, is headquartered in Boston, Massachusetts and operates as the holding company for Brookline Bank, Bank Rhode Island, and First Ipswich Bank (the "banks"). The Company provides commercial and retail banking services, cash management and investment services to customers throughout Central New England. More information about Brookline Bancorp, Inc. and its banks can be found at the following websites: www.brooklinebank.com, www.bankri.com, and www.firstipswich.com.

FORWARD-LOOKING STATEMENTS

Certain statements contained in this press release that are not historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties. The Company’s actual results could differ materially from those projected in the forward-looking statements as a result of, among others, the risks outlined in the Company’s Annual Report on Form 10-K, as updated by its Quarterly Reports on Form 10-Q and other filings submitted to the Securities and Exchange Commission ("SEC"). The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.

BASIS OF PRESENTATION

The Company's consolidated financial statements have been prepared in conformity with generally accepted accounting principles (“GAAP”) as set forth by the Financial Accounting Standards Board in its Accounting Standards Codification and through the rules and interpretive releases of the SEC under the authority of federal securities laws. Certain amounts previously reported have been reclassified to conform to the current period's presentation.

NON-GAAP FINANCIAL MEASURES

The Company uses certain non-GAAP financial measures, such as operating earnings, operating return on average assets, operating return on average tangible assets, operating return on average stockholders' equity, operating return on average tangible stockholders' equity, the allowance for loan and lease losses related to originated loans and leases as a percentage of originated loans and leases, tangible book value per common share, tangible stockholders’ equity to tangible assets, return on average tangible assets (annualized) and return on average tangible stockholders' equity (annualized). These non-GAAP financial measures provide information for investors to effectively analyze financial trends of ongoing business activities, and to enhance comparability with peers across the financial services sector. A detailed reconciliation table of the Company's GAAP to the non-GAAP measures is attached.

Contact: Carl M. Carlson
Brookline Bancorp, Inc.
Chief Financial Officer
(617) 425-5331
ccarlson@brkl.com


BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Selected Financial Highlights (Unaudited)
 
  At and for the Three Months Ended
  June 30,
2019
  March 31,
2019
  December 31,
2018
  September 30,
2018
  June 30,
2018
  (Dollars In Thousands Except per Share Data)
Earnings Data:                  
Net interest income $   63,134      $   62,999      $   63,159      $   62,332      $   62,717   
Provision for credit losses    3,757         1,353         123         2,717         1,470   
Non-interest income    7,478         6,630         6,461         7,069         5,526   
Non-interest expense    39,604         38,871         40,282         37,310         37,702   
Income before provision for income taxes    27,251         29,405         29,215         29,374         29,071   
Net income attributable to Brookline Bancorp, Inc.    20,471         22,467         21,138         22,460         20,831   
                   
Performance Ratios:                  
Net interest margin (1)   3.55 %     3.64 %     3.58 %     3.57 %     3.64 %
Interest-rate spread (1)   3.13 %     3.18 %     3.25 %     3.27 %     3.36 %
Return on average assets (annualized)   1.08 %     1.21 %     1.15 %     1.23 %     1.15 %
Return on average tangible assets (annualized) (non-GAAP)   1.11 %     1.24 %     1.17 %     1.26 %     1.17 %
Return on average stockholders' equity (annualized)   8.98 %     10.14 %     9.40 %     10.10 %     9.53 %
Return on average tangible stockholders' equity (annualized) (non-GAAP)   10.98 %     12.48 %     11.54 %     12.44 %     11.80 %
Efficiency ratio (2)   56.09 %     55.83 %     57.86 %     53.76 %     55.25 %
                   
Per Common Share Data:                  
Net income — Basic $   0.26      $   0.28      $   0.26      $   0.28      $   0.26   
Net income — Diluted    0.26         0.28         0.26         0.28         0.26   
Cash dividends declared    0.110         0.110         0.105         0.105         0.100   
Book value per share (end of period)    11.53         11.30         11.30         11.08         10.94   
Tangible book value per share (end of period) (non-GAAP)    9.45         9.22         9.21         9.00         8.85   
Stock price (end of period)    15.38         14.40         13.82         16.70         18.60   
 
Balance Sheet:                  
Total assets $   7,636,980      $   7,519,130      $   7,392,805      $   7,320,596      $   7,285,710   
Total loans and leases    6,505,329         6,388,197         6,303,516         6,227,707         6,171,274   
Total deposits    5,622,493         5,620,633         5,454,044         5,233,611         5,198,280   
Brookline Bancorp, Inc. stockholders’ equity    918,468         900,572         900,140         890,368         877,283   
                   
Asset Quality:                  
Nonperforming assets $   23,267      $   26,721      $   28,116      $   29,718      $   30,145   
Nonperforming assets as a percentage of total assets   0.30 %     0.36 %     0.38 %     0.41 %     0.41 %
Allowance for loan and lease losses $   58,635      $   58,041      $   58,692      $   59,997      $   57,981   
Allowance for loan and lease losses as a percentage of total loans and leases   0.90 %     0.91 %     0.93 %     0.96 %     0.94 %
Net loan and lease charge-offs $   3,082      $   2,101      $   1,252      $   564      $   2,330   
Net loan and lease charge-offs as a percentage of average loans and leases (annualized)   0.19 %     0.13 %     0.08 %     0.04 %     0.15 %
                   
Capital Ratios:                  
Stockholders’ equity to total assets   12.03 %     11.98 %     12.18 %     12.16 %     12.04 %
Tangible stockholders’ equity to tangible assets (non-GAAP)   10.08 %     9.99 %     10.15 %     10.11 %     9.97 %
                   
(1) Calculated on a fully tax-equivalent basis.                  
(2) Calculated as non-interest expense as a percentage of net interest income plus non-interest income.                  
 

 

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets (Unaudited)
  June 30, 2019   March 31, 2019   December 31, 2018   September 30, 2018   June 30, 2018
ASSETS (In Thousands Except Share Data)
Cash and due from banks $   46,532      $   51,276      $   47,542      $   30,762      $   32,724   
Short-term investments    46,264         61,063         42,042         23,114         22,754   
Total cash and cash equivalents    92,796         112,339         89,584         53,876         55,478   
Investment securities available-for-sale    482,497         489,020         502,793         534,788         558,602   
Investment securities held-to-maturity    103,572         113,694         114,776         115,684         116,670   
Equity securities held-for-trading    4,698         4,341         4,207         4,169         —  
Total investment securities    590,767         607,055         621,776         654,641         675,272   
Loans and leases held-for-sale    1,575         869         3,247         937         1,034   
Loans and leases:                  
Commercial real estate loans:                  
Commercial real estate mortgage    2,421,104         2,355,507         2,330,725         2,287,979         2,269,520   
Multi-family mortgage    877,330         855,703         847,711         828,849         816,311   
Construction    195,120         199,258         173,300         164,217         178,335   
Total commercial real estate loans    3,493,554         3,410,468         3,351,736         3,281,045         3,264,166   
Commercial loans and leases:                  
Commercial    763,145         741,577         736,418         771,200         761,964   
Equipment financing    1,015,205         995,863         982,089         954,579         920,643   
Condominium association    47,986         49,142         50,451         52,205         53,537   
Total commercial loans and leases    1,826,336         1,786,582         1,768,958         1,777,984         1,736,144   
Consumer loans:                  
Residential mortgage    769,983         775,578         782,968         759,167         754,818   
Home equity    374,746         376,126         376,484         380,303         382,597   
Other consumer    40,710         39,443         23,370         29,208         33,549   
Total consumer loans    1,185,439         1,191,147         1,182,822         1,168,678         1,170,964   
Total loans and leases    6,505,329         6,388,197         6,303,516         6,227,707         6,171,274   
Allowance for loan and lease losses    (58,635 )      (58,041 )      (58,692 )      (59,997 )      (57,981 )
Net loans and leases    6,446,694         6,330,156         6,244,824         6,167,710         6,113,293   
Restricted equity securities    55,270         54,192         61,751         63,963         68,343   
Premises and equipment, net of accumulated depreciation    75,373         75,520         76,382         77,886         79,194   
Right-of-use asset operating leases    25,928         26,205         —        —        —  
Deferred tax asset    25,629         27,084         21,495         22,249         20,826   
Goodwill    160,427         160,427         160,427         160,427         160,427   
Identified intangible assets, net of accumulated amortization    5,264         5,684         6,086         6,623         7,160   
Other real estate owned and repossessed assets    1,966         3,912         4,019         3,934         4,352   
Other assets    155,291         115,687         103,214         108,350         100,331   
Total assets $   7,636,980      $   7,519,130      $   7,392,805      $   7,320,596      $   7,285,710   
LIABILITIES AND STOCKHOLDERS' EQUITY                  
Deposits:                  
Non-interest-bearing deposits:                  
Demand checking accounts $   1,042,854      $   1,011,031      $   1,033,551      $   1,017,234      $   1,002,954   
Interest-bearing deposits:                  
NOW accounts    340,082         369,896         336,317         322,587         346,936   
Savings accounts    585,322         625,770         619,961         612,210         603,079   
Money market accounts    1,669,782         1,706,708         1,675,050         1,623,220         1,704,652   
Certificate of deposit accounts    1,984,453         1,907,228         1,789,165         1,658,360         1,540,659   
Total interest-bearing deposits    4,579,639         4,609,602         4,420,493         4,216,377         4,195,326   
Total deposits    5,622,493         5,620,633         5,454,044         5,233,611         5,198,280   
Borrowed funds:                  
Advances from the FHLBB    791,559         730,018         784,375         959,446         991,091   
Subordinated debentures and notes    83,512         83,472         83,433         83,392         83,352   
Other borrowed funds    55,693         52,515         52,734         40,048         36,480   
Total borrowed funds    930,764         866,005         920,542         1,082,886         1,110,923   
Operating lease liabilities    25,928         26,205         —        —        —  
Mortgagors’ escrow accounts    6,823         7,517         7,426         8,227         8,122   
Accrued expenses and other liabilities    132,504         98,198         100,174         96,047         82,017   
Total liabilities    6,718,512         6,618,558         6,482,186         6,420,771         6,399,342   
Stockholders' equity:                  
Brookline Bancorp, Inc. stockholders’ equity:                  
Common stock, $0.01 par value; 200,000,000 shares authorized; 85,177,172 shares issued, 85,177,172 shares issued, 85,177,172 shares issued, 85,177,172 shares issued, and 85,177,172 shares issued, respectively    852         852         852         852         852   
Additional paid-in capital    737,584         736,872         755,629         753,941         756,254   
Retained earnings, partially restricted    238,625         226,929         212,838         200,151         185,734   
Accumulated other comprehensive loss    1,141         (4,393 )      (9,460 )      (15,599 )      (13,415 )
Treasury stock, at cost;                  
5,025,764 shares, 5,020,025 shares, 5,020,025 shares, 4,291,317 shares, and 4,409,501 shares, respectively    (59,199 )      (59,121 )      (59,120 )      (48,334 )      (51,454 )
Unallocated common stock held by the Employee Stock Ownership Plan;                  
98,208 shares, 104,079 shares, 109,950 shares,118,050 shares, and 126,144 shares, respectively    (535 )      (567 )      (599 )      (643 )      (688 )
Total Brookline Bancorp, Inc. stockholders’ equity    918,468         900,572         900,140         890,368         877,283   
Noncontrolling interest in subsidiary    —        —        10,479         9,457         9,085   
Total stockholders' equity    918,468         900,572         910,619         899,825         886,368   
Total liabilities and stockholders' equity $   7,636,980      $   7,519,130      $   7,392,805      $   7,320,596      $   7,285,710   

 

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
  Three Months Ended
  June 30, 2019   March 31, 2019   December 31, 2018   September 30, 2018   June 30, 2018
  (In Thousands Except Share Data)
Interest and dividend income:                  
Loans and leases $   82,798    $   80,672    $   78,791      $   75,877      $   73,329 
Debt securities    3,158       3,236       3,489         3,585         3,563 
Marketable and restricted equity securities    877       911       1,008         1,029         1,003 
Short-term investments    351       267       256         145         179 
Total interest and dividend income    87,184       85,086       83,544         80,636         78,074 
Interest expense:                  
Deposits    17,712       15,948       13,744         11,916         9,219 
Borrowed funds    6,338       6,139       6,641         6,388         6,138 
Total interest expense    24,050       22,087       20,385         18,304         15,357 
Net interest income    63,134       62,999       63,159         62,332         62,717 
Provision for credit losses    3,757       1,353       123         2,717         1,470 
Net interest income after provision for credit losses    59,377       61,646       63,036         59,615         61,247 
Non-interest income:                  
Deposit fees    2,680       2,523       2,669         2,648         2,620 
Loan fees    398       413       390         417         330 
Loan level derivative income, net    1,772       1,745       1,811         2,192         571 
Gain (loss) on investment securities, net    357       134       (692 )      (243 )      —
Gain on sales of loans and leases held-for-sale    561       289       327         535         722 
Other    1,710       1,526       1,956         1,520         1,283 
Total non-interest income    7,478       6,630       6,461         7,069         5,526 
Non-interest expense:                  
Compensation and employee benefits    23,953       23,743       24,413         22,338         22,565 
Occupancy    3,752       3,947       3,240         3,913         3,879 
Equipment and data processing    4,641       4,661       4,626         4,601         4,368 
Professional services    1,087       1,076       1,130         1,075         1,055 
FDIC insurance    745       593       727         846         514 
Advertising and marketing    1,112       1,069       773         1,068         1,118 
Amortization of identified intangible assets    420       402       537         537         539 
Merger and acquisition expense    —      —      526         22         334 
Other    3,894       3,380       4,310         2,910         3,330 
Total non-interest expense    39,604       38,871       40,282         37,310         37,702 
Income before provision for income taxes    27,251       29,405       29,215         29,374         29,071 
Provision for income taxes    6,780       6,895       7,055         6,140         7,342 
Net income before noncontrolling interest in subsidiary    20,471       22,510       22,160         23,234         21,729 
Less net income attributable to noncontrolling interest in subsidiary    —      43       1,022         774         898 
Net income attributable to Brookline Bancorp, Inc. $   20,471    $   22,467    $   21,138      $   22,460      $   20,831 
Earnings per common share:                  
Basic $   0.26    $   0.28    $   0.26      $   0.28      $   0.26 
Diluted $   0.26    $   0.28    $   0.26      $   0.28      $   0.26 
Weighted average common shares outstanding during the period:                
Basic    79,669,922       79,658,583       80,258,456         80,315,050         80,184,977 
Diluted    79,886,292       79,843,578       80,407,525         80,515,467         80,505,614 
Dividends paid per common share $   0.110    $   0.105    $   0.105      $   0.100      $   0.100 
 

 

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
   
  Six Months Ended June 30,
    2019     2018
  (In Thousands Except Share Data)
Interest and dividend income:      
Loans and leases $   163,470    $   140,601 
Debt securities    6,394       6,886 
Marketable and restricted equity securities    1,788       1,927 
Short-term investments    618       299 
Total interest and dividend income    172,270       149,713 
Interest expense:      
Deposits    33,660       16,318 
Borrowed funds    12,477       11,187 
Total interest expense    46,137       27,505 
Net interest income    126,133      122,208
Provision for credit losses    5,110      2,111
Net interest income after provision for credit losses    121,023      120,097
Non-interest income:      
Deposit Fees    5,203       5,083 
Loan Fees    811       620 
Loan level derivative income, net    3,517       1,437 
Gain on investment securities, net    491       1,162 
Gain on sales of loans and leases held-for-sale    850       1,021 
Other    3,236       2,371 
Total non-interest income    14,108       11,694 
Non-interest expense:      
Compensation and employee benefits    47,696       44,879 
Occupancy    7,699       7,838 
Equipment and data processing    9,302       8,986 
Professional services    2,163       2,199 
FDIC insurance    1,338       1,149 
Advertising and marketing    2,181       2,175 
Amortization of identified intangible assets    822       1,006 
Merger and acquisition expense    —      3,239 
Other    7,274       6,169 
Total non-interest expense    78,475       77,640 
Income before provision for income taxes    56,656       54,151 
Provision for income taxes    13,675       12,994 
Net income before noncontrolling interest in subsidiary    42,981       41,157 
Less net income attributable to noncontrolling interest in subsidiary    43       1,693 
Net income attributable to Brookline Bancorp, Inc. $   42,938    $   39,464 
Earnings per common share:      
Basic $   0.54    $   0.50 
Diluted $   0.54    $   0.50 
Weighted average common shares outstanding during the period:    
Basic    79,664,284       79,038,041 
Diluted    79,859,572       79,342,463 
Dividends paid per common share $   0.215    $   0.190 
 

 

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Asset Quality Analysis (Unaudited)
  At and for the Three Months Ended
  June 30, 2019   March 31, 2019   December 31, 2018   September 30, 2018   June 30, 2018
  (Dollars in Thousands)
NONPERFORMING ASSETS:                  
Loans and leases accounted for on a nonaccrual basis:                  
Commercial real estate mortgage $   2,273      $   2,889      $   3,928      $   3,369      $   3,774   
Multi-family mortgage    94         101         330         357         568   
Construction    —        396         396         640         640   
Total commercial real estate loans    2,367         3,386         4,654         4,366         4,982   
                   
Commercial    6,349         5,728         6,621         7,862         9,487   
Equipment financing    9,931         10,253         9,500         9,659         8,825   
Condominium association    170         224         265         295         —  
Total commercial loans and leases    16,450         16,205         16,386         17,816         18,312   
                   
Residential mortgage    1,642         2,188         2,132         2,538         1,571   
Home equity    835         1,022         908         1,053         923   
Other consumer    7         8         17         11         5   
Total consumer loans    2,484         3,218         3,057         3,602         2,499   
                   
Total nonaccrual loans and leases    21,301         22,809         24,097         25,784         25,793   
                   
Other real estate owned    957         3,054         3,054         3,136         3,436   
Other repossessed assets    1,009         858         965         798         916   
Total nonperforming assets $   23,267      $   26,721      $   28,116      $   29,718      $   30,145   
                   
Loans and leases past due greater than 90 days and still accruing $   11,612      $   16,800      $   13,482      $   14,954      $   12,340   
                   
Troubled debt restructurings on accrual    27,761         28,543         12,257         12,657         12,911   
Troubled debt restructurings on nonaccrual    8,431         7,597         8,684         8,779         9,391   
Total troubled debt restructurings $   36,192      $   36,140      $   20,941      $   21,436      $   22,302   
                   
Nonperforming loans and leases as a percentage of total loans and leases   0.33 %     0.36 %     0.38 %     0.41 %     0.42 %
Nonperforming assets as a percentage of total assets   0.30 %     0.36 %     0.38 %     0.41 %     0.41 %
                   
PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:            
Allowance for loan and lease losses at beginning of period $   58,041      $   58,692      $   59,997      $   57,981      $   58,714   
Charge-offs    (3,412 )      (2,542 )      (1,604 )      (1,227 )      (3,605 )
Recoveries    330         441         352         663         1,275   
Net charge-offs    (3,082 )      (2,101 )      (1,252 )      (564 )      (2,330 )
Provision for loan and lease losses    3,676         1,450         (53 )      2,580         1,597   
Allowance for loan and lease losses at end of period $   58,635      $   58,041      $   58,692      $   59,997      $   57,981   
                   
Allowance for loan and lease losses as a percentage of total loans and leases   0.90 %     0.91 %     0.93 %     0.96 %     0.94 %
Allowance for loan and lease losses related to originated loans and leases as a percentage of originated loans and leases (non-GAAP)   0.92 %     0.93 %     0.96 %     1.00 %     0.98 %
                   
NET CHARGE-OFFS:                  
Commercial real estate loans $   —     $   —     $   —     $   —     $   100   
Commercial loans and leases    3,107         2,124         883         579         2,304   
Consumer loans    (25 )      (23 )      369         (15 )      (74 )
Total net charge-offs $   3,082      $   2,101      $   1,252      $   564      $   2,330   
                   
Net loan and lease charge-offs as a percentage of average
loans and leases (annualized)
  0.19 %     0.13 %     0.08 %     0.04 %     0.15 %
                   
 

 

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Average Yields / Costs (Unaudited)
  Three Months Ended
  June 30, 2019   March 31, 2019   June 30, 2018
  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) $   593,404      $   3,210    2.16 %   $   608,194      $   3,289    2.16 %   $   666,182      $   3,617    2.17 %
Marketable and restricted equity securities (2)    59,224         888    5.99 %      60,389         920    6.10 %      69,395         1,004    5.78 %
Short-term investments    44,634         351    3.14 %      33,034         267    3.23 %      41,155         179    1.74 %
Total investments    697,262         4,449    2.55 %      701,617         4,476    2.55 %      776,732         4,800    2.47 %
Loans and Leases:                                  
Commercial real estate loans (3)    3,447,136         41,363    4.75 %      3,376,576         40,019    4.74 %      3,250,488         36,372    4.43 %
Commercial loans (3)    811,890         9,879    4.82 %      792,695         9,603    4.85 %      823,860         9,323    4.48 %
Equipment financing (3)    1,005,376         18,291    7.28 %      988,193         17,985    7.28 %      907,089         15,739    6.94 %
Residential mortgage loans (3)    774,533         8,186    4.23 %      778,325         8,123    4.17 %      759,866         7,552    3.98 %
Other consumer loans (3)    417,600         5,187    4.97 %      408,177         5,051    5.01 %      406,144         4,464    4.40 %
Total loans and leases    6,456,535         82,906    5.14 %      6,343,966         80,781    5.09 %      6,147,447         73,450    4.78 %
Total interest-earning assets    7,153,797         87,355    4.88 %      7,045,583         85,257    4.84 %      6,924,179         78,250    4.52 %
Allowance for loan and lease losses    (58,137 )              (58,749 )              (59,247 )        
Non-interest-earning assets    475,736                 447,204                 408,861           
Total assets $   7,571,396              $   7,434,038              $   7,273,793           
                                   
Liabilities and Stockholders' Equity:                                  
Interest-bearing liabilities:                                  
Deposits:                                  
NOW accounts $   343,745         50    0.06 %   $   334,167         142    0.17 %   $   346,410         65    0.07 %
Savings accounts    602,333         737    0.49 %      626,414         597    0.39 %      609,758         405    0.27 %
Money market accounts    1,683,735         5,571    1.33 %      1,676,199         5,275    1.28 %      1,767,509         3,530    0.80 %
Certificates of deposit    1,950,704         11,354    2.33 %      1,844,511         9,934    2.18 %      1,422,782         5,219    1.47 %
Total interest-bearing deposits    4,580,517         17,712    1.55 %      4,481,291         15,948    1.44 %      4,146,459         9,219    0.89 %
Borrowings                                  
Advances from the FHLBB    761,651         4,825    2.51 %      755,542         4,610    2.44 %      1,018,130         4,696    1.82 %
Subordinated debentures and notes    83,490         1,305    6.25 %      83,451         1,308    6.27 %      83,330         1,296    6.22 %
Other borrowed funds    84,600         208    0.99 %      88,600         221    1.01 %      46,635         146    1.26 %
Total borrowings    929,741         6,338    2.70 %      927,593         6,139    2.65 %      1,148,095         6,138    2.11 %
Total interest-bearing liabilities    5,510,258         24,050    1.75 %      5,408,884         22,087    1.66 %      5,294,554         15,357    1.16 %
Non-interest-bearing liabilities:                                  
Demand checking accounts    1,015,524                 1,026,970                 1,003,985           
Other non-interest-bearing liabilities    133,790                 111,174                 91,889           
Total liabilities    6,659,572                 6,547,028                 6,390,428           
Brookline Bancorp, Inc.
stockholders’ equity
   911,824                 886,639                 874,513           
Noncontrolling interest in
subsidiary
   —                371                 8,852           
Total liabilities and equity $   7,571,396              $   7,434,038              $   7,273,793           
Net interest income (tax-equivalent basis) /Interest-rate spread (4)        63,305    3.13 %          63,170    3.18 %          62,893    3.36 %
Less adjustment of tax-exempt income        171               171               176     
Net interest income     $   63,134            $   62,999            $   62,717     
Net interest margin (5)         3.55 %           3.64 %           3.64 %
                                   
(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 on an actual/actual basis.
 

 

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Average Yields / Costs (Unaudited)
  Six Months Ended
  June 30, 2019   June 30, 2018
  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) $   600,758      $   6,499    2.16 %   $   656,893      $   6,994    2.13 %
Marketable and restricted equity securities (2)    59,803         1,808    6.05 %      66,774         1,927    5.77 %
Short-term investments    38,866         618    3.18 %      35,938         299    1.67 %
Total investments    699,427         8,925    2.55 %      759,605         9,220    2.43 %
Loans and Leases:                      
Commercial real estate loans (3)    3,412,051         81,382    4.74 %      3,183,959         69,801    4.36 %
Commercial loans (3)    802,346         19,482    4.83 %      805,002         17,747    4.39 %
Equipment financing (3)    996,832         36,276    7.28 %      891,284         30,603    6.87 %
Residential mortgage loans (3)    776,419         16,309    4.20 %      732,418         14,285    3.90 %
Other consumer loans (3)    412,914         10,238    4.99 %      394,235         8,405    4.29 %
Total loans and leases    6,400,562         163,687    5.11 %      6,006,898         140,841    4.69 %
Total interest-earning assets    7,099,989         172,612    4.86 %      6,766,503         150,061    4.44 %
Allowance for loan and lease losses    (58,441 )              (59,117 )        
Non-interest-earning assets    461,548                 394,124           
Total assets $   7,503,096              $   7,101,510           
                       
Liabilities and Stockholders' Equity:                      
Interest-bearing liabilities:                      
Deposits:                      
NOW accounts $   338,983         192    0.11 %   $   341,228         123    0.07 %
Savings accounts    614,307         1,334    0.44 %      629,382         806    0.26 %
Money market accounts    1,679,988         10,846    1.30 %      1,769,923         6,088    0.69 %
Certificates of deposit    1,897,901         21,288    2.26 %      1,335,401         9,301    1.40 %
Total interest-bearing deposits    4,531,179         33,660    1.50 %      4,075,934         16,318    0.81 %
Borrowings                      
Advances from the FHLBB    758,613         9,435    2.47 %      987,385         8,444    1.70 %
Subordinated debentures and notes    83,471         2,613    6.26 %      83,310         2,578    6.19 %
Other borrowed funds    86,589         429    1.00 %      41,420         165    0.80 %
Total borrowings    928,673         12,477    2.67 %      1,112,115         11,187    2.00 %
Total interest-bearing liabilities    5,459,852         46,137    1.70 %      5,188,049         27,505    1.07 %
Non-interest-bearing liabilities:                      
Demand checking accounts    1,021,215                 968,035           
Other non-interest-bearing liabilities    122,544                 84,570           
Total liabilities    6,603,611                 6,240,654           
Brookline Bancorp, Inc. stockholders’ equity    899,301                 852,180           
Noncontrolling interest in subsidiary    184                 8,676           
Total liabilities and equity $   7,503,096              $   7,101,510           
Net interest income (tax-equivalent basis) /Interest-rate spread (4)        126,475    3.16 %          122,556    3.37 %
Less adjustment of tax-exempt income        342               348     
Net interest income     $   126,133            $   122,208     
Net interest margin (5)         3.59 %           3.65 %
                       
(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 on an actual/actual basis.
 

 

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Non-GAAP Financial Information (Unaudited)
      At and for the Three Months Ended 
June 30,
  At and for the Six Months Ended  
June 30,
        2019       2018       2019       2018  
Reconciliation Table - Non-GAAP Financial Information   (Dollars in Thousands Except Share Data)
             
Net income attributable to Brookline Bancorp, Inc.   $   20,471      $   20,831      $   42,938      $   39,464   
Less:                  
Security gains (after-tax)      268         —        373         883   
Add:                  
Merger and acquisition-related expenses (after-tax)      —        254         —        2,462   
Operating earnings   $   20,203      $   21,085      $   42,565      $   41,043   
               
Operating earnings per common share:              
Basic     $   0.25      $   0.26      $   0.53      $   0.52   
Diluted        0.25         0.26         0.53         0.52   
               
Weighted average common shares outstanding during the period:            
Basic        79,669,922         80,184,977         79,664,284         79,038,041   
Diluted        79,886,292         80,505,614         79,859,572         79,342,463   
                   
                   
Return on average assets *     1.08 %     1.15 %     1.14 %     1.11 %
Less:                  
Security gains (after-tax) *     0.01 %     %     0.01 %     0.02 %
Add:                  
Merger and acquisition-related expenses (after-tax) *     %     0.01 %     %     0.07 %
Operating return on average assets *     1.07 %     1.16 %     1.13 %     1.16 %
                   
                   
Return on average tangible assets *     1.11 %     1.17 %     1.17 %     1.14 %
Less:                  
Security gains (after-tax) *     0.02 %     %     0.01 %     0.03 %
Add:                  
Merger and acquisition-related expenses (after-tax) *     %     0.02 %     %     0.07 %
Operating return on average tangible assets *     1.09 %     1.19 %     1.16 %     1.18 %
                   
                   
Return on average stockholders' equity *     8.98 %     9.53 %     9.55 %     9.26 %
Less:                  
Security gains (after-tax) *     0.12 %     %     0.08 %     0.21 %
Add:                  
Merger and acquisition-related expenses (after-tax) *     %     0.11 %     %     0.58 %
Operating return on average stockholders' equity *     8.86 %     9.64 %     9.47 %     9.63 %
                   
                   
Return on average tangible stockholders' equity *     10.98 %     11.80 %     11.71 %     11.41 %
Less:                  
Security gains (after-tax) *     0.15 %     %     0.10 %     0.26 %
Add:                  
Merger and acquisition-related expenses (after-tax) *     %     0.14 %     %     0.71 %
Operating return on average tangible stockholders' equity *     10.83 %     11.94 %     11.61 %     11.86 %
                 
* Ratios at and for the three and six months ended are annualized.              
                   
                   
                   
  At and for the Three Months Ended
  June 30,
2019
  March 31,
2019
  December 31,
2018
  September 30,
2018
  June 30,
2018
  (Dollars in Thousands)
                   
Net income, as reported $   20,471      $   22,467      $   21,138      $   22,460      $   20,831   
                   
Average total assets $   7,571,396      $   7,434,038      $   7,382,931      $   7,302,413      $   7,273,793   
Less: Average goodwill and average identified intangible assets, net    165,914        166,327        166,777        167,313        168,185  
Average tangible assets $   7,405,482      $   7,267,711      $   7,216,154      $   7,135,100      $   7,105,608   
                   
Return on average tangible assets (annualized)   1.11 %     1.24 %     1.17 %     1.26 %     1.17 %
                   
Average total stockholders’ equity $   911,824      $   886,639      $   899,244      $   889,259      $   874,513   
Less: Average goodwill and average identified intangible assets, net    165,914        166,327        166,777        167,313        168,185  
Average tangible stockholders’ equity $   745,910      $   720,312      $   732,467      $   721,946      $   706,328   
                   
Return on average tangible stockholders’ equity (annualized)   10.98 %     12.48 %     11.54 %     12.44 %     11.80 %
                   
Brookline Bancorp, Inc. stockholders’ equity $   918,468      $   900,572      $   900,140      $   890,368      $   877,283   
Less:                  
Goodwill    160,427         160,427         160,427         160,427         160,427   
Identified intangible assets, net    5,264         5,684         6,086         6,623         7,160   
Tangible stockholders' equity $   752,777      $   734,461      $   733,627      $   723,318      $   709,696   
                   
Total assets $   7,636,980      $   7,519,130      $   7,392,805      $   7,320,596      $   7,285,710   
Less:                  
Goodwill    160,427         160,427         160,427         160,427         160,427   
Identified intangible assets, net    5,264         5,684         6,086         6,623         7,160   
Tangible assets $   7,471,289      $   7,353,019      $   7,226,292      $   7,153,546      $   7,118,123   
                   
Tangible stockholders’ equity to tangible assets   10.08 %     9.99 %     10.15 %     10.11 %     9.97 %
                   
Tangible stockholders' equity $   752,777      $   734,461      $   733,627      $   723,318      $   709,696   
                   
Number of common shares issued    85,177,172         85,177,172         85,177,172         85,177,172         85,177,172   
Less:                  
Treasury shares    5,025,764         5,020,025         5,020,025         4,291,317         4,409,501   
Unallocated ESOP shares    98,208         104,079         109,950         118,050         126,144   
Unvested restricted shares    377,122         390,636         393,636         398,094         455,283   
Number of common shares outstanding    79,676,078         79,662,432         79,653,561         80,369,711         80,186,244   
                   
Tangible book value per common share $     9.45       $     9.22       $     9.21       $     9.00       $     8.85    
                   
Allowance for loan and lease losses $   58,635      $   58,041      $   58,692      $   59,997      $   57,981   
Less:                  
Allowance for acquired loans and leases losses    1,857         1,795         1,814         1,817         1,961  
Allowance for originated loan and lease losses $   56,778      $   56,246      $   56,878      $   58,180      $   56,020   
                   
Total loans and leases $   6,505,329      $   6,388,197      $   6,303,516      $   6,227,707      $   6,171,274   
Less:                  
Total acquired loans and leases    337,420         370,177         394,407         426,865         460,142   
Total originated loans and leases $   6,167,909      $   6,018,020      $   5,909,109      $   5,800,842      $   5,711,132   
                   
Allowance for loan and lease losses related to originated loans and leases as a percentage of originated loans and leases   0.92 %     0.93 %     0.96 %     1.00 %     0.98 %
                   
                   
                   

 

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