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CST: 17/11/2019 15:05:21   

Brookline Bancorp Announces Third Quarter Results

24 Days ago

Net Income of $22.6 million, EPS of $0.28

Quarterly Dividend Increase of 4.5%

BOSTON, Oct. 23, 2019 (GLOBE NEWSWIRE) -- Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced net income of $22.6 million, or $0.28 per basic and diluted share, for the third quarter of 2019, compared to $20.5 million, or $0.26 per basic and diluted share, for the second quarter of 2019, and $22.5 million, or $0.28 per basic and diluted share, for the third quarter of 2018.

Paul Perrault, President and Chief Executive Officer of the Company commented on the third quarter earnings, "We continued to produce strong results in the third quarter, including favorable loan and deposit growth. With this growth we have maintained our commitment to achieving solid returns for our stockholders. Our Board has again voted to increase our dividend, from $0.110 to $0.115. We look forward to a productive fourth quarter.”

FIRST IPSWICH BANK CHARTER CONSOLIDATION

On October 23, 2019, Brookline Bank and First Ipswich Bank, both wholly-owned subsidiaries of the Company, entered into a merger agreement pursuant to which First Ipswich Bank will merge with and into Brookline Bank with Brookline Bank as the surviving institution. We anticipate closing the transaction in the first quarter of 2020. There are no branch closings as part of this charter consolidation.

BALANCE SHEET

Total assets at September 30, 2019 increased $241.5 million to $7.9 billion from $7.6 billion at June 30, 2019, and increased $557.8 million from $7.3 billion at September 30, 2018, primarily driven by growth in the loan portfolio. At September 30, 2019, total loans and leases were $6.6 billion, representing an increase of $141.5 million from June 30, 2019, and an increase of $419.1 million from September 30, 2018, primarily driven by growth in the commercial real estate portfolio.

Investment securities at September 30, 2019 decreased $23.7 million to $567.1 million, as compared to $590.8 million at June 30, 2019, and decreased approximately $87.6 million from $654.6 million at September 30, 2018. As of September 30, 2019, securities, cash and cash equivalents represented 9.5 percent of total assets as compared to 9.0 percent and 9.7 percent as of June 30, 2019 and September 30, 2018, respectively.

Total deposits at September 30, 2019 increased $106.8 million from $5.6 billion at June 30, 2019 to $5.7 billion and increased $495.7 million from $5.2 billion at September 30, 2018 driven primarily by growth in demand deposits.

Total borrowed funds at September 30, 2019 increased $55.6 million to $986.4 million from $930.8 million at June 30, 2019 and decreased $96.5 million from $1.1 billion at September 30, 2018.

The ratio of stockholders’ equity to total assets was 11.83 percent at September 30, 2019, as compared to 12.03 percent at June 30, 2019, and 12.16 percent at September 30, 2018. The ratio of tangible stockholders’ equity to tangible assets was 9.94 percent at September 30, 2019, as compared to 10.08 percent at June 30, 2019, and 10.11 percent at September 30, 2018. Tangible book value per share increased $0.18 from $9.45 at June 30, 2019 to $9.63 at September 30, 2019, compared to $9.00 at September 30, 2018.

NET INTEREST INCOME

Net interest income increased $0.1 million to $63.2 million during the third quarter of 2019 from $63.1 million at the quarter ended June 30, 2019. The net interest margin decreased 10 basis points to 3.45 percent for the three months ended September 30, 2019.

NON-INTEREST INCOME

Non-interest income for the quarter ended September 30, 2019 increased $0.4 million to $7.9 million from $7.5 million for the quarter ended June 30, 2019. The increase was primarily driven by increases of $0.3 million in loan fees, $0.5 million in loan level derivative income and $0.1 million in other non-interest income, partially offset by a decrease of $0.5 million in gain on securities.

PROVISION FOR CREDIT LOSSES

The Company recorded a provision for credit losses of $0.9 million for the quarter ended September 30, 2019, compared to $3.8 million for the quarter ended June 30, 2019. The improved, lower provision in the third quarter results from a reduction in classified assets, recoveries and lower charge-offs.

Total net charge-offs for the third quarter of 2019 were $0.4 million compared to $3.1 million in the second quarter of 2019. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis decreased to 2 basis points for the third quarter of 2019 from 19 basis points for the second quarter of 2019.

The allowance for loan and lease losses represented 0.89 percent of total loans and leases at September 30, 2019, compared to 0.90 percent at June 30, 2019, and 0.96 percent at September 30, 2018. The allowance for loan and lease losses related to originated loans and leases represented 0.90 percent of originated loans and leases at September 30, 2019, compared to 0.92 percent at June 30, 2019, and 1.00 percent at September 30, 2018.

NON-INTEREST EXPENSE

Non-interest expense for the quarter ended September 30, 2019 increased $0.6 million to $40.2 million from $39.6 million for the quarter ended June 30, 2019. The increase was primarily driven by increases of $0.9 million in compensation and employee benefits expense, $0.1 million in occupancy, $0.1 million in equipment and data processing, and $1.1 million in merger and restructuring expense related to the First Ipswich Bank Charter consolidation referenced above, partially offset by decreases of $0.7 million in FDIC insurance and $0.9 million in other non-interest expense.

PROVISION FOR INCOME TAXES

The effective tax rate was 24.9 percent and 24.4 percent for the three and nine months ended September 30, 2019, respectively, compared to 20.9 percent and 22.9 for the three and nine months ended September 30, 2018, respectively.

RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

The annualized return on average assets increased to 1.17 percent during the third quarter of 2019 from 1.08 percent for the second quarter of 2019. The annualized return on average tangible assets increased to 1.19 percent for the third quarter of 2019 from 1.11 percent for the second quarter of 2019.

The annualized return on average stockholders' equity increased to 9.74 percent during the third quarter of 2019 from 8.98 percent for the second quarter of 2019. The annualized return on average tangible stockholders’ equity increased to 11.85 percent for the third quarter of 2019 from 10.98 percent for the second quarter of 2019.

ASSET QUALITY

The ratio of nonperforming loans and leases to total loans and leases was 0.33 percent at September 30, 2019, unchanged from 0.33 percent at June 30, 2019. Nonperforming loans and leases increased $0.3 million to $21.6 million at September 30, 2019 from $21.3 million at June 30, 2019. The ratio of nonperforming assets to total assets was 0.30 percent at September 30, 2019, unchanged from 0.30 percent at June 30, 2019. Nonperforming assets increased $0.5 million to $23.8 million at September 30, 2019 from $23.3 million at June 30, 2019.

DIVIDEND DECLARED

The Company’s Board of Directors approved a dividend of $0.115 per share for the quarter ended September 30, 2019, an increase of half a cent from the prior period. The dividend will be paid on November 22, 2019 to stockholders of record on November 8, 2019, representing an increase of 4.5 percent from the prior quarter and a 9.5 percent increase from the prior year.

CONFERENCE CALL

The Company will conduct a conference call/webcast at 1:30 PM Eastern Daylight Time on Thursday, October 24, 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 10134880. 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 $7.9 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
  September 30,
2019
  June 30,
2019
  March 31,
2019
  December 31,
2018
  September 30,
2018
   
  (Dollars In Thousands Except per Share Data)
Earnings Data:                  
Net interest income $ 63,236     $ 63,134     $ 62,999     $ 63,159     $ 62,332  
Provision for credit losses   871       3,757       1,353       123       2,717  
Non-interest income   7,929       7,478       6,630       6,461       7,069  
Non-interest expense   40,191       39,604       38,871       40,282       37,310  
Income before provision for income taxes   30,103       27,251       29,405       29,215       29,374  
Net income attributable to Brookline Bancorp, Inc.   22,596       20,471       22,467       21,138       22,460  
                   
Performance Ratios:                  
Net interest margin (1)   3.45 %     3.55 %     3.64 %     3.58 %     3.57 %
Interest-rate spread (1)   3.06 %     3.13 %     3.18 %     3.25 %     3.27 %
Return on average assets (annualized)   1.17 %     1.08 %     1.21 %     1.15 %     1.23 %
Return on average tangible assets (annualized) (non-GAAP)   1.19 %     1.11 %     1.24 %     1.17 %     1.26 %
Return on average stockholders' equity (annualized)   9.74 %     8.98 %     10.14 %     9.40 %     10.10 %
Return on average tangible stockholders' equity (annualized) (non-GAAP)   11.85 %     10.98 %     12.48 %     11.54 %     12.44 %
Efficiency ratio (2)   56.48 %     56.09 %     55.83 %     57.86 %     53.76 %
                   
Per Common Share Data:                  
Net income — Basic $ 0.28     $ 0.26     $ 0.28     $ 0.26     $ 0.28  
Net income — Diluted   0.28       0.26       0.28       0.26       0.28  
Cash dividends declared   0.115       0.110       0.110       0.105       0.105  
Book value per share (end of period)   11.70       11.53       11.30       11.30       11.08  
Tangible book value per share (end of period) (non-GAAP)   9.63       9.45       9.22       9.21       9.00  
Stock price (end of period)   14.73       15.38       14.40       13.82       16.70  
                   
Balance Sheet:                  
Total assets $ 7,878,436     $ 7,636,980     $ 7,519,130     $ 7,392,805     $ 7,320,596  
Total loans and leases   6,646,821       6,505,329       6,388,197       6,303,516       6,227,707  
Total deposits   5,729,339       5,622,493       5,620,633       5,454,044       5,233,611  
Brookline Bancorp, Inc. stockholders’ equity   932,311       918,468       900,572       900,140       890,368  
                   
Asset Quality:                  
Nonperforming assets $ 23,760     $ 23,267     $ 26,721     $ 28,116     $ 29,718  
Nonperforming assets as a percentage of total assets   0.30 %     0.30 %     0.36 %     0.38 %     0.41 %
Allowance for loan and lease losses $ 59,135     $ 58,635     $ 58,041     $ 58,692     $ 59,997  
Allowance for loan and lease losses as a percentage of total loans and leases   0.89 %     0.90 %     0.91 %     0.93 %     0.96 %
Net loan and lease charge-offs $ 366     $ 3,082     $ 2,101     $ 1,252     $ 564  
Net loan and lease charge-offs as a percentage of average loans and leases (annualized)   0.02 %     0.19 %     0.13 %     0.08 %     0.04 %
                   
Capital Ratios:                  
Stockholders’ equity to total assets   11.83 %     12.03 %     11.98 %     12.18 %     12.16 %
Tangible stockholders’ equity to tangible assets (non-GAAP)   9.94 %     10.08 %     9.99 %     10.15 %     10.11 %
                   
(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)
  September 30, 2019   June 30, 2019   March 31, 2019   December 31, 2018   September 30,
2018
   
ASSETS (In Thousands Except Share Data)
Cash and due from banks $ 93,841     $ 46,532     $ 51,276     $ 47,542     $ 30,762  
Short-term investments   84,689       46,264       61,063       42,042       23,114  
Total cash and cash equivalents   178,530       92,796       112,339       89,584       53,876  
Investment securities available-for-sale   467,339       482,497       489,020       502,793       534,788  
Investment securities held-to-maturity   95,163       103,572       113,694       114,776       115,684  
Equity securities held-for-trading   4,581       4,698       4,341       4,207       4,169  
Total investment securities   567,083       590,767       607,055       621,776       654,641  
Loans and leases held-for-sale         1,575       869       3,247       937  
Loans and leases:                  
Commercial real estate loans:                  
Commercial real estate mortgage   2,441,091       2,421,104       2,355,507       2,330,725       2,287,979  
Multi-family mortgage   919,234       877,330       855,703       847,711       828,849  
Construction   229,126       195,120       199,258       173,300       164,217  
Total commercial real estate loans   3,589,451       3,493,554       3,410,468       3,351,736       3,281,045  
Commercial loans and leases:                  
Commercial   766,883       763,145       741,577       736,418       771,200  
Equipment financing   1,029,280       1,015,205       995,863       982,089       954,579  
Condominium association   54,225       47,986       49,142       50,451       52,205  
Total commercial loans and leases   1,850,388       1,826,336       1,786,582       1,768,958       1,777,984  
Consumer loans:                  
Residential mortgage   792,733       769,983       775,578       782,968       759,167  
Home equity   375,257       374,746       376,126       376,484       380,303  
Other consumer   38,992       40,710       39,443       23,370       29,208  
Total consumer loans   1,206,982       1,185,439       1,191,147       1,182,822       1,168,678  
Total loans and leases`   6,646,821       6,505,329       6,388,197       6,303,516       6,227,707  
Allowance for loan and lease losses   (59,135 )     (58,635 )     (58,041 )     (58,692 )     (59,997 )
Net loans and leases   6,587,686       6,446,694       6,330,156       6,244,824       6,167,710  
Restricted equity securities   57,896       55,270       54,192       61,751       63,963  
Premises and equipment, net of accumulated depreciation   75,229       75,373       75,520       76,382       77,886  
Right-of-use asset operating leases   26,216       25,928       26,205              
Deferred tax asset   25,204       25,629       27,084       21,495       22,249  
Goodwill   160,427       160,427       160,427       160,427       160,427  
Identified intangible assets, net of accumulated amortization   4,843       5,264       5,684       6,086       6,623  
Other real estate owned and repossessed assets   2,132       1,966       3,912       4,019       3,934  
Other assets   193,190       155,291       115,687       103,214       108,350  
Total assets $ 7,878,436     $ 7,636,980     $ 7,519,130     $ 7,392,805     $ 7,320,596  
LIABILITIES AND STOCKHOLDERS' EQUITY                  
Deposits:                  
Non-interest-bearing deposits:                  
Demand checking accounts $ 1,106,684     $ 1,042,854     $ 1,011,031     $ 1,033,551     $ 1,017,234  
Interest-bearing deposits:                  
NOW accounts   340,321       340,082       369,896       336,317       322,587  
Savings accounts   604,481       585,322       625,770       619,961       612,210  
Money market accounts   1,666,231       1,669,782       1,706,708       1,675,050       1,623,220  
Certificate of deposit accounts   2,011,622       1,984,453       1,907,228       1,789,165       1,658,360  
Total interest-bearing deposits   4,622,655       4,579,639       4,609,602       4,420,493       4,216,377  
Total deposits   5,729,339       5,622,493       5,620,633       5,454,044       5,233,611  
Borrowed funds:                  
Advances from the FHLBB   854,481       791,559       730,018       784,375       959,446  
Subordinated debentures and notes   83,551       83,512       83,472       83,433       83,392  
Other borrowed funds   48,373       55,693       52,515       52,734       40,048  
Total borrowed funds   986,405       930,764       866,005       920,542       1,082,886  
Operating lease liabilities   26,216       25,928       26,205              
Mortgagors’ escrow accounts   7,072       6,823       7,517       7,426       8,227  
Accrued expenses and other liabilities   197,093       132,504       98,198       100,174       96,047  
Total liabilities   6,946,125       6,718,512       6,618,558       6,482,186       6,420,771  
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   735,928       737,584       736,872       755,629       753,941  
Retained earnings, partially restricted   252,435       238,625       226,929       212,838       200,151  
Accumulated other comprehensive loss   2,775       1,141       (4,393 )     (9,460 )     (15,599 )
Treasury stock, at cost;                  
5,003,127 shares, 5,025,764 shares, 5,020,025 shares, 5,020,025 shares, and 4,291,317 shares, respectively   (59,176 )     (59,199 )     (59,121 )     (59,120 )     (48,334 )
Unallocated common stock held by the Employee Stock Ownership Plan;                  
92,337 shares, 98,208 shares, 104,079 shares,109,950 shares, and 118,050 shares, respectively   (503 )     (535 )     (567 )     (599 )     (643 )
Total Brookline Bancorp, Inc. stockholders’ equity   932,311       918,468       900,572       900,140       890,368  
Noncontrolling interest in subsidiary                     10,479       9,457  
Total stockholders' equity   932,311       918,468       900,572       910,619       899,825  
Total liabilities and stockholders' equity $ 7,878,436     $ 7,636,980     $ 7,519,130     $ 7,392,805     $ 7,320,596  
                   


BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
  Three Months Ended
  September 30, 2019   June 30, 2019   March 31, 2019   December 31, 2018   September 30, 2018
   
  (In Thousands Except Share Data)
Interest and dividend income:                  
Loans and leases $ 83,566     $ 82,798   $ 80,672   $ 78,791     $ 75,877  
Debt securities   2,977       3,158     3,236     3,489       3,585  
Marketable and restricted equity securities   876       877     911     1,008       1,029  
Short-term investments   487       351     267     256       145  
Total interest and dividend income   87,906       87,184     85,086     83,544       80,636  
Interest expense:                  
Deposits   18,300       17,712     15,948     13,744       11,916  
Borrowed funds   6,370       6,338     6,139     6,641       6,388  
Total interest expense   24,670       24,050     22,087     20,385       18,304  
Net interest income   63,236       63,134     62,999     63,159       62,332  
Provision for credit losses   871       3,757     1,353     123       2,717  
Net interest income after provision for credit losses   62,365       59,377     61,646     63,036       59,615  
Non-interest income:                  
Deposit fees   2,710       2,680     2,523     2,669       2,648  
Loan fees   719       398     413     390       417  
Loan level derivative income, net   2,251       1,772     1,745     1,811       2,192  
Gain (loss) on investment securities, net   (116 )     357     134     (692 )     (243 )
Gain on sales of loans and leases held-for-sale   550       561     289     327       535  
Other   1,815       1,710     1,526     1,956       1,520  
Total non-interest income   7,929       7,478     6,630     6,461       7,069  
Non-interest expense:                  
Compensation and employee benefits   24,871       23,953     23,743     24,413       22,338  
Occupancy   3,895       3,752     3,947     3,240       3,913  
Equipment and data processing   4,749       4,641     4,661     4,626       4,601  
Professional services   1,083       1,087     1,076     1,130       1,075  
FDIC insurance   54       745     593     727       846  
Advertising and marketing   1,035       1,112     1,069     773       1,068  
Amortization of identified intangible assets   421       420     402     537       537  
Merger and restructuring expense   1,125               526       22  
Other   2,958       3,894     3,380     4,310       2,910  
Total non-interest expense   40,191       39,604     38,871     40,282       37,310  
Income before provision for income taxes   30,103       27,251     29,405     29,215       29,374  
Provision for income taxes   7,507       6,780     6,895     7,055       6,140  
Net income before noncontrolling interest in subsidiary   22,596       20,471     22,510     22,160       23,234  
Less net income attributable to noncontrolling interest in subsidiary             43     1,022       774  
Net income attributable to Brookline Bancorp, Inc. $ 22,596     $ 20,471   $ 22,467   $ 21,138     $ 22,460  
Earnings per common share:                  
Basic $ 0.28     $ 0.26   $ 0.28   $ 0.26     $ 0.28  
Diluted $ 0.28     $ 0.26   $ 0.28   $ 0.26     $ 0.28  
Weighted average common shares outstanding during the period:                
Basic   79,700,403       79,669,922     79,658,583     80,258,456       80,315,050  
Diluted   79,883,510       79,886,292     79,843,578     80,407,525       80,515,467  
Dividends paid per common share $ 0.110     $ 0.110   $ 0.105   $ 0.105     $ 0.100  
                   


BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
   
  Nine Months Ended September 30,
    2019     2018
   
  (In Thousands Except Share Data)
Interest and dividend income:      
Loans and leases $ 247,036   $ 216,478
Debt securities   9,371     10,471
Marketable and restricted equity securities   2,664     2,956
Short-term investments   1,105     444
Total interest and dividend income   260,176     230,349
Interest expense:      
Deposits   51,960     28,234
Borrowed funds   18,847     17,575
Total interest expense   70,807     45,809
Net interest income   189,369     184,540
Provision for credit losses   5,981     4,828
Net interest income after provision for credit losses   183,388     179,712
Non-interest income:      
Deposit Fees   7,913     7,731
Loan Fees   1,530     1,037
Loan level derivative income, net   5,768     3,629
Gain on investment securities, net   375     1,162
Gain on sales of loans and leases held-for-sale   1,400     1,556
Other   5,051     3,648
Total non-interest income   22,037     18,763
Non-interest expense:      
Compensation and employee benefits   72,567     67,217
Occupancy   11,594     11,751
Equipment and data processing   14,051     13,587
Professional services   3,246     3,274
FDIC insurance   1,392     1,995
Advertising and marketing   3,216     3,243
Amortization of identified intangible assets   1,243     1,543
Merger and restructuring expense   1,125     3,261
Other   10,232     9,079
Total non-interest expense   118,666     114,950
Income before provision for income taxes   86,759     83,525
Provision for income taxes   21,182     19,134
Net income before noncontrolling interest in subsidiary   65,577     64,391
Less net income attributable to noncontrolling interest in subsidiary   43     2,467
Net income attributable to Brookline Bancorp, Inc. $ 65,534   $ 61,924
Earnings per common share:      
Basic $ 0.82   $ 0.78
Diluted $ 0.82   $ 0.78
Weighted average common shares outstanding during the period:    
Basic   79,676,456     79,471,238
Diluted   79,867,683     79,740,992
Dividends paid per common share $ 0.325   $ 0.290
       


BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Asset Quality Analysis (Unaudited)
  At and for the Three Months Ended
  September 30, 2019   June 30, 2019   March 31,
2019
  December 31, 2018   September 30, 2018
   
  (Dollars in Thousands)
NONPERFORMING ASSETS:                  
Loans and leases accounted for on a nonaccrual basis:                  
Commercial real estate mortgage $ 2,910     $ 2,273     $ 2,889     $ 3,928     $ 3,369  
Multi-family mortgage   87       94       101       330       357  
Construction               396       396       640  
Total commercial real estate loans   2,997       2,367       3,386       4,654       4,366  
                   
Commercial   3,139       6,349       5,728       6,621       7,862  
Equipment financing   12,817       9,931       10,253       9,500       9,659  
Condominium association   163       170       224       265       295  
Total commercial loans and leases   16,119       16,450       16,205       16,386       17,816  
                   
Residential mortgage   1,605       1,642       2,188       2,132       2,538  
Home equity   904       835       1,022       908       1,053  
Other consumer   3       7       8       17       11  
Total consumer loans   2,512       2,484       3,218       3,057       3,602  
                   
Total nonaccrual loans and leases   21,628       21,301       22,809       24,097       25,784  
                   
Other real estate owned   201       957       3,054       3,054       3,136  
Other repossessed assets   1,931       1,009       858       965       798  
Total nonperforming assets $ 23,760     $ 23,267     $ 26,721     $ 28,116     $ 29,718  
                   
Loans and leases past due greater than 90 days and still accruing $ 11,885     $ 11,612     $ 16,800     $ 13,482     $ 14,954  
                   
Troubled debt restructurings on accrual   22,233       27,761       28,543       12,257       12,657  
Troubled debt restructurings on nonaccrual   5,763       8,431       7,597       8,684       8,779  
Total troubled debt restructurings $ 27,996     $ 36,192     $ 36,140     $ 20,941     $ 21,436  
                   
Nonperforming loans and leases as a percentage of total loans and leases   0.33 %     0.33 %     0.36 %     0.38 %     0.41 %
Nonperforming assets as a percentage of total assets   0.30 %     0.30 %     0.36 %     0.38 %     0.41 %
                   
PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:            
Allowance for loan and lease losses at beginning of period $ 58,635     $ 58,041     $ 58,692     $ 59,997     $ 57,981  
Charge-offs   (1,190 )     (3,412 )     (2,542 )     (1,604 )     (1,227 )
Recoveries   824       330       441       352       663  
Net charge-offs   (366 )     (3,082 )     (2,101 )     (1,252 )     (564 )
Provision for loan and lease losses   866       3,676       1,450       (53 )     2,580  
Allowance for loan and lease losses at end of period $ 59,135     $ 58,635     $ 58,041     $ 58,692     $ 59,997  
                   
Allowance for loan and lease losses as a percentage of total loans and leases   0.89 %     0.90 %     0.91 %     0.93 %     0.96 %
Allowance for loan and lease losses related to originated loans and leases as a percentage of originated loans and leases (non-GAAP)   0.90 %     0.92 %     0.93 %     0.96 %     1.00 %
                   
NET CHARGE-OFFS:                  
Commercial real estate loans $     $     $     $     $  
Commercial loans and leases   403       3,107       2,124       883       579  
Consumer loans   (37 )     (25 )     (23 )     369       (15 )
Total net charge-offs $ 366     $ 3,082     $ 2,101     $ 1,252     $ 564  
                   
Net loan and lease charge-offs as a percentage of average loans and leases (annualized)   0.02 %     0.19 %     0.13 %     0.08 %     0.04 %
                   


BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Average Yields / Costs (Unaudited)
  Three Months Ended
  September 30, 2019   June 30, 2019   September 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) $ 573,389     $ 3,027   2.11 %   $ 593,404     $ 3,210   2.16 %   $ 663,125     $ 3,638   2.20 %
Marketable and restricted equity securities (2)   59,638       885   5.94 %     59,224       888   5.99 %     67,607       1,029   6.09 %
Short-term investments   70,707       487   2.76 %     44,634       351   3.14 %     31,061       145   1.87 %
Total investments   703,734       4,399   2.50 %     697,262       4,449   2.55 %     761,793       4,812   2.53 %
Loans and Leases:                                  
Commercial real estate loans (3)   3,539,485       41,724   4.61 %     3,447,136       41,363   4.75 %     3,260,634       37,332   4.48 %
Commercial loans (3)   838,092       10,291   4.81 %     811,890       9,879   4.82 %     819,383       9,862   4.72 %
Equipment financing (3)   1,019,179       18,519   7.27 %     1,005,376       18,291   7.28 %     933,007       16,220   6.95 %
Residential mortgage loans (3)   776,482       8,215   4.23 %     774,533       8,186   4.23 %     756,421       7,648   4.04 %
Other consumer loans (3)   415,082       4,917   4.69 %     417,600       5,187   4.97 %     412,248       4,928   4.73 %
Total loans and leases   6,588,320       83,666   5.08 %     6,456,535       82,906   5.14 %     6,181,693       75,990   4.92 %
   Total interest-earning assets   7,292,054       88,065   4.83 %     7,153,797       87,355   4.88 %     6,943,486       80,802   4.65 %
Allowance for loan and lease losses   (59,386 )             (58,137 )             (58,576 )        
Non-interest-earning assets   513,824               475,736               417,503          
Total assets $ 7,746,492             $ 7,571,396             $ 7,302,413          
                                   
Liabilities and Stockholders' Equity:                                  
Interest-bearing liabilities:                                  
Deposits:                                  
NOW accounts $ 335,091       129   0.15 %   $ 343,745       50   0.06 %   $ 344,760       72   0.08 %
Savings accounts   600,609       820   0.54 %     602,333       737   0.49 %     599,514       472   0.31 %
Money market accounts   1,683,548       5,413   1.28 %     1,683,735       5,571   1.33 %     1,668,402       4,367   1.04 %
Certificates of deposit   2,000,941       11,938   2.37 %     1,950,704       11,354   2.33 %     1,612,551       7,005   1.72 %
Total interest-bearing deposits   4,620,189       18,300   1.57 %     4,580,517       17,712   1.55 %     4,225,227       11,916   1.12 %
Borrowings                                  
Advances from the FHLBB   759,738       4,859   2.50 %     761,651       4,825   2.51 %     907,306       4,979   2.15 %
Subordinated debentures and notes   83,530       1,300   6.22 %     83,490       1,305   6.25 %     83,370       1,301   6.24 %
Other borrowed funds   79,620       211   1.05 %     84,600       208   0.99 %     56,918       108   0.75 %
Total borrowings   922,888       6,370   2.70 %     929,741       6,338   2.70 %     1,047,594       6,388   2.39 %
   Total interest-bearing liabilities   5,543,077       24,670   1.77 %     5,510,258       24,050   1.75 %     5,272,821       18,304   1.38 %
Non-interest-bearing liabilities:                                  
Demand checking accounts   1,096,788               1,015,524               1,023,610          
Other non-interest-bearing liabilities   178,564               133,790               107,449          
Total liabilities   6,818,429               6,659,572               6,403,880          
Brookline Bancorp, Inc. stockholders’ equity   928,063               911,824               889,259          
Noncontrolling interest in subsidiary                               9,274          
Total liabilities and equity $ 7,746,492             $ 7,571,396             $ 7,302,413          
Net interest income (tax-equivalent basis) /Interest-rate spread (4)       63,395   3.06 %         63,305   3.13 %         62,498   3.27 %
Less adjustment of tax-exempt income       159             171             166    
Net interest income     $ 63,236           $ 63,134           $ 62,332    
Net interest margin (5)         3.45 %           3.55 %           3.57 %
                                   
(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)
  Nine Months Ended
  September 30, 2019   September 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) $ 591,535     $ 9,526   2.15 %   $ 658,993     $ 10,632   2.15 %
Marketable and restricted equity securities (2)   59,747       2,693   6.01 %     67,056       2,956   5.88 %
Short-term investments   49,833       1,105   2.96 %     34,295       444   1.73 %
Total investments   701,115       13,324   2.53 %     760,344       14,032   2.46 %
Loans and Leases:                      
Commercial real estate loans (3)   3,454,996       123,106   4.70 %     3,209,798       107,133   4.40 %
Commercial loans (3)   814,392       29,773   4.82 %     809,849       27,609   4.50 %
Equipment financing (3)   1,004,363       54,795   7.27 %     905,345       46,823   6.90 %
Residential mortgage loans (3)   776,440       24,524   4.21 %     740,507       21,933   3.95 %
Other consumer loans (3)   413,645       15,155   4.89 %     400,304       13,333   4.45 %
Total loans and leases   6,463,836       247,353   5.10 %     6,065,803       216,831   4.77 %
   Total interest-earning assets   7,164,951       260,677   4.85 %     6,826,147       230,863   4.51 %
Allowance for loan and lease losses   (58,759 )             (58,935 )        
Non-interest-earning assets   479,046               401,999          
Total assets $ 7,585,238             $ 7,169,211          
                       
Liabilities and Stockholders' Equity:                      
Interest-bearing liabilities:                      
Deposits:                      
NOW accounts $ 337,671       321   0.13 %   $ 342,418       195   0.08 %
Savings accounts   609,284       2,154   0.47 %     619,317       1,278   0.28 %
Money market accounts   1,681,594       16,259   1.29 %     1,735,710       10,455   0.81 %
Certificates of deposit   1,932,625       33,226   2.30 %     1,428,799       16,306   1.53 %
Total interest-bearing deposits   4,561,174       51,960   1.52 %     4,126,244       28,234   0.91 %
Borrowings                      
Advances from the FHLBB   758,992       14,294   2.48 %     960,399       13,423   1.84 %
Subordinated debentures and notes   83,491       3,913   6.25 %     83,330       3,879   6.21 %
Other borrowed funds   84,477       640   1.01 %     46,643       273   0.78 %
Total borrowings   926,960       18,847   2.68 %     1,090,372       17,575   2.13 %
   Total interest-bearing liabilities   5,488,134       70,807   1.72 %     5,216,616       45,809   1.17 %
Non-interest-bearing liabilities:                      
Demand checking accounts   1,046,683               986,763          
Other non-interest-bearing liabilities   141,305               92,280          
Total liabilities   6,676,122               6,295,659          
Brookline Bancorp, Inc. stockholders’ equity   908,994               864,675          
Noncontrolling interest in subsidiary   122               8,877          
Total liabilities and equity $ 7,585,238             $ 7,169,211          
Net interest income (tax-equivalent basis) /Interest-rate spread (4)       189,870   3.13 %         185,054   3.34 %
Less adjustment of tax-exempt income       501             514    
Net interest income     $ 189,369           $ 184,540    
Net interest margin (5)         3.54 %           3.62 %
                       
(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 
 September 30,
  At and for the Nine Months Ended 
 September 30,
        2019       2018       2019       2018  
     
Reconciliation Table - Non-GAAP Financial Information   (Dollars in Thousands Except Share Data)
                 
Net income attributable to Brookline Bancorp, Inc.   $ 22,596     $ 22,460     $ 65,534     $ 61,924  
Less:                  
Security gains (after-tax)     (87 )           284       883  
Add:                  
Merger and restructuring-related expenses (after-tax)     845       17       851       2,478  
Operating earnings     $ 23,528     $ 22,477     $ 66,101     $ 63,519  
                   
Operating earnings per common share:                  
Basic     $ 0.30     $ 0.28     $ 0.83     $ 0.80  
Diluted       0.29       0.28       0.83       0.80  
                   
Weighted average common shares outstanding during the period:                
Basic       79,700,403       80,315,050       79,676,456       79,471,238  
Diluted       79,883,510       80,515,467       79,867,683       79,740,992  
                   
                   
Return on average assets *     1.17 %     1.23 %     1.15 %     1.15 %
Less:                  
Security gains (after-tax) *     %     %     %     0.02 %
Add:                  
Merger and restructuring-related expenses (after-tax) *     0.04 %     %     0.01 %     0.05 %
Operating return on average assets *     1.21 %     1.23 %     1.16 %     1.18 %
                   
                   
Return on average tangible assets *     1.19 %     1.26 %     1.18 %     1.18 %
Less:                  
Security gains (after-tax) *     %     %     0.01 %     0.02 %
Add:                  
Merger and restructuring-related expenses (after-tax) *     0.05 %     %     0.02 %     0.05 %
Operating return on average tangible assets *     1.24 %     1.26 %     1.19 %     1.21 %
                   
                   
Return on average stockholders' equity *     9.74 %     10.10 %     9.61 %     9.55 %
Less:                  
Security gains (after-tax) *     (0.04 )%     %     0.04 %     0.14 %
Add:                  
Merger and restructuring-related expenses (after-tax) *     0.36 %     0.01 %     0.13 %     0.38 %
Operating return on average stockholders' equity *     10.14 %     10.11 %     9.70 %     9.79 %
                   
                   
Return on average tangible stockholders' equity *     11.85 %     12.44 %     11.76 %     11.76 %
Less:                  
Security gains (after-tax) *     (0.05 )%     %     0.05 %     0.17 %
Add:                  
Merger and restructuring-related expenses (after-tax) *     0.44 %     0.01 %     0.15 %     0.47 %
Operating return on average tangible stockholders' equity *     12.34 %     12.45 %     11.86 %     12.06 %
                   
* Ratios at and for the three and nine months ended are annualized.                
                   
                   
  At and for the Three Months Ended
  September 30,
2019
  June 30,
2019
  March 31,
2019
  December 31,
2018
  September 30,
2018
   
  (Dollars in Thousands)
                   
Net income, as reported $ 22,596     $ 20,471     $ 22,467     $ 21,138     $ 22,460  
                   
Average total assets $ 7,746,492     $ 7,571,396     $ 7,434,038     $ 7,382,931     $ 7,302,413  
Less: Average goodwill and average identified intangible assets, net   165,493       165,914       166,327       166,777       167,313  
Average tangible assets $ 7,580,999     $ 7,405,482     $ 7,267,711     $ 7,216,154     $ 7,135,100  
                   
Return on average tangible assets (annualized)   1.19 %     1.11 %     1.24 %     1.17 %     1.26 %
                   
Average total stockholders’ equity $ 928,063     $ 911,824     $ 886,639     $ 899,244     $ 889,259  
Less: Average goodwill and average identified intangible assets, net   165,493       165,914       166,327       166,777       167,313  
Average tangible stockholders’ equity $ 762,570     $ 745,910     $ 720,312     $ 732,467     $ 721,946  
                   
Return on average tangible stockholders’ equity (annualized)   11.85 %     10.98 %     12.48 %     11.54 %     12.44 %
                   
Brookline Bancorp, Inc. stockholders’ equity $ 932,311     $ 918,468     $ 900,572     $ 900,140     $ 890,368  
Less:                  
Goodwill   160,427       160,427       160,427       160,427       160,427  
Identified intangible assets, net   4,843       5,264       5,684       6,086       6,623  
Tangible stockholders' equity $ 767,041     $ 752,777     $ 734,461     $ 733,627     $ 723,318  
                   
Total assets $ 7,878,436     $ 7,636,980     $ 7,519,130     $ 7,392,805     $ 7,320,596  
Less:                  
Goodwill   160,427       160,427       160,427       160,427       160,427  
Identified intangible assets, net   4,843       5,264       5,684       6,086       6,623  
Tangible assets $ 7,713,166     $ 7,471,289     $ 7,353,019     $ 7,226,292     $ 7,153,546  
                   
Tangible stockholders’ equity to tangible assets   9.94 %     10.08 %     9.99 %     10.15 %     10.11 %
                   
Tangible stockholders' equity $ 767,041     $ 752,777     $ 734,461     $ 733,627     $ 723,318  
                   
Number of common shares issued   85,177,172       85,177,172       85,177,172       85,177,172       85,177,172  
Less:                  
Treasury shares   5,003,127       5,025,764       5,020,025       5,020,025       4,291,317  
Unallocated ESOP shares   92,337       98,208       104,079       109,950       118,050  
Unvested restricted shares   407,784       377,122       390,636       393,636       398,094  
Number of common shares outstanding   79,673,924       79,676,078       79,662,432       79,653,561       80,369,711  
                   
Tangible book value per common share $ 9.63     $ 9.45     $ 9.22     $ 9.21     $ 9.00  
                   
Allowance for loan and lease losses $ 59,135     $ 58,635     $ 58,041     $ 58,692     $ 59,997  
Less:                  
Allowance for acquired loans and leases losses   1,955       1,857       1,795       1,814       1,817  
Allowance for originated loan and lease losses $ 57,180     $ 56,778     $ 56,246     $ 56,878     $ 58,180  
                   
Total loans and leases $ 6,646,821     $ 6,505,329     $ 6,388,197     $ 6,303,516     $ 6,227,707  
Less:                  
Total acquired loans and leases   310,745       337,420       370,177       394,407       426,865  
Total originated loans and leases $ 6,336,076     $ 6,167,909     $ 6,018,020     $ 5,909,109     $ 5,800,842  
                   
Allowance for loan and lease losses related to originated loans and leases as a percentage of originated loans and leases   0.90 %     0.92 %     0.93 %     0.96 %     1.00 %
                   

 

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