Brookline Bancorp Announces Second Quarter Net Income Of $9.5 Million, EPS Of $0.14

Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced net income of $9.5 million, or $0.14 per basic and diluted share, for the second quarter of 2013, compared to $8.8 million, or $0.13 per basic and diluted share, for the first quarter of 2013, and $7.5 million, or $0.11 per basic and diluted share, for the second quarter of 2012. This increase in earnings per share represents an 8 percent increase from the first quarter 2013 and a 26 percent increase from the second quarter of 2012.

Paul Perrault, President and Chief Executive Officer of Brookline Bancorp, Inc., stated: “We are pleased to report increased earnings for the quarter and the successful completion of our three-phase systems conversions as of May 2013. Our already stellar asset quality continues to improve and our bankers continue to compete effectively in our markets, despite continued competitive pressures.”

BALANCE SHEET

Total assets increased $40.1 million during the second quarter, to $5.2 billion at June 30, 2013, and increased $178.1 million from $5.0 billion at June 30, 2012. Total loans and leases increased $31.0 million during the quarter to $4.2 billion, representing 3 percent growth on an annualized basis. At June 30, 2013, the commercial loan and lease and commercial real estate portfolios totaled $3.0 billion, or 70.2 percent of total loans and leases. Strong loan growth continued in our commercial real estate portfolios of $55.6 million in the quarter or 11 percent on an annualized basis. This growth offset the decrease in the indirect automobile portfolio of $31.2 million from March 31, 2013 to June 30, 2013.

Deposits of $3.7 billion at June 30, 2013 were up $30.9 million from March 31, 2013 and up $135.8 million from June 30, 2012. This represents an annualized increase of 4 percent from June 30, 2012. Core deposits, which consist of demand checking, NOW, savings, and money market accounts, increased at a 7 percent annualized rate in the second quarter of 2013, raising the core deposit ratio from 72.6 percent at March 31, 2013 to 73.4 percent at June 30, 2013. Total borrowings increased $9.6 million from $820.4 million at March 31, 2013 to $830.0 million at June 30, 2013.

Cash, cash equivalents, and investment securities were flat quarter-to-quarter and down $22.6 million year-to-year to $579.5 million, or 11.3 percent of total assets, at June 30, 2013 as compared to $579.2 million, or 11.3 percent of total assets, at March 31, 2013 and $602.1 million, or 12.1 percent of total assets, at June 30, 2012.

The ratio of stockholders’ equity to total assets was 11.87 percent at June 30, 2013. The ratio of tangible stockholders’ equity to tangible assets was 9.10 percent at June 30, 2013.

NET INTEREST INCOME

Net interest income for the second quarter of 2013 increased $1.7 million to $45.4 million from $43.7 million in the first quarter of 2013, and increased $2.6 million from $42.8 million for the quarter ending June 30, 2012.

For the second quarter of 2013, net interest income includes $1.4 million of prepayment penalties on commercial loans, up $0.5 million from first quarter 2013, and $2.4 million of accretion and amortization on acquired loans, deposits, and borrowed funds, up $0.2 million from first quarter 2013. Collectively, these increases contributed 31 basis points to the second quarter 2013 net interest margin which increased from 3.70 percent for the first quarter 2013 to 3.78 percent.

NON-INTEREST INCOME

Non-interest income for the second quarter of 2013 decreased $0.2 million to $3.1 million from $3.3 million in the first quarter of 2013, and decreased $1.6 million from $4.7 million for the second quarter of 2012. The quarter-to-quarter decrease was largely a result of an increased loss from investments in affordable housing projects in the second quarter of 2013.

Non-interest income for the six months of 2013 decreased $1.8 million to $6.5 million from $8.3 million in 2012. Several factors contributed to the year-to-year decrease, including an increased loss from investments in affordable housing projects, a reduction in deposit-related service charges due to systems conversion, and a smaller gain on sales of mortgage loans due to the higher interest-rate environment in the second quarter of 2013. The year-to-year decrease was also a result of a net gain on sales of securities in the second quarter of 2012.

NON-INTEREST EXPENSE AND TAX PROVISION

Non-interest expense for the second quarter of 2013 remained flat as compared to the first quarter of 2013 at $30.8 million, and increased $2.2 million from $28.6 million for the second quarter of 2012. Quarter-to-quarter changes in the components of non-interest expense included the following:
  • Compensation and employee benefit expense increased $0.4 million, or 2 percent, compared to the first quarter of 2013. This quarter-to-quarter increase is largely a result of temporary and permanent additions to staff and one additional pay day in the second quarter.
  • Other expense decreased quarter-to-quarter in part as a result of a reduction in other-real-estate-owned expense of $0.2 million, as well as decreases in insurance and postage expense.

Non-interest expense for the first six months of 2013 increased approximately $0.5 million to $61.6 million from $61.1 million in 2012. Year-to-year changes in the components of non-interest expense included the following:
  • Compensation and employee benefit expense increased $4.1 million, or 14 percent, compared to the first six months of 2012. This year-to-year increase is largely a result of additions to staff to support system conversions and to further the Company's infrastructure build.
  • Equipment and data processing expense increased largely as a result of upgrades in data processing, purchases of equipment, and conversion-related expenses in conjunction with Bank Rhode Island’s core system conversion.
  • Professional services expense decreased $6.0 million year-over-year largely as a result of reduced costs for integration activities, systems conversions, bank charter conversions and a change in the Company’s outsourced internal auditors.
  • Other expenses for the six months ended June 30, 2013 increased $1.3 million year-to-year due in part to increased expenses for repossessed assets, telecommunication, printing, and marketing.

The effective tax rate decreased slightly from 36.1 percent for the second quarter of 2012 to 35.7 percent for the first quarter of 2013 and to 35.3 percent for the second quarter of 2013.

The return on average assets increased from 0.61 percent at June 30, 2012 and 0.70 percent at March 31, 2013 to 0.74 percent at June 30, 2013. The return on average stockholders’ equity increased from 5.04 percent at June 30, 2012 and 5.72 percent at March 31, 2013 to 6.16 percent at June 30, 2013.

ASSET QUALITY

Nonperforming loans and leases decreased $4.2 million from $21.7 million, or 0.42 percent of total assets, at March 31, 2013 to $17.5 million, or 0.34 percent of total assets, at June 30, 2013. The ratio of nonperforming loans and leases to total loans and leases decreased from 0.52 percent at March 31, 2013 to 0.42 percent at June 30, 2013. Nonperforming assets also decreased approximately $4.0 million from $22.9 million, or 0.45 percent of total assets, at March 31, 2013 to $19.0 million, or 0.37 percent of total assets, at June 30, 2013.

The provision for loan and lease losses increased from $1.8 million for the first quarter of 2013 to $2.4 million for the second quarter of 2013. The increase is due to the growth in the commercial real estate portfolios and an additional allowance recorded for subsequent deterioration in the acquired loan portfolios.

The allowance for loan and lease losses was $44.3 million at June 30, 2013, compared to $42.5 million at March 31, 2013, and $37.4 million at June 30, 2012. The increase is due to additions to the allowance for continued loan growth in the commercial real estate portfolios and an additional allowance recorded for subsequent deterioration in the acquired loan portfolios. The allowance for loan and lease losses as a share of total loans and leases was 1.05 percent at June 30, 2013, compared to 1.02 percent at March 31, 2013, and 0.93 percent at June 30, 2012. The allowance for loan and lease losses related to originated loans and leases as a percent of originated loans and leases remained flat at 1.34 percent at March 31, 2013 and June 30, 2013.

DIVIDEND DECLARED

The Company’s Board of Directors approved, for the 45 th consecutive quarter, a dividend of $0.085 per share. The dividend will be paid on August 24, 2013, to shareholders of record on August 10, 2013.

CONFERENCE CALL

The Company will conduct a conference call/webcast at 1:30 PM eastern time on Thursday, July 25, 2013 to discuss the results for the quarter, business highlights and outlook. The call can be accessed by dialing 888-317-6016 (United States) or 412-317-6016 (internationally). A recorded playback of the call will be available for one week following the call at 877-344-7529 (United States) or 412-317-0088 (internationally). The passcode for playback is 10031060. The call will be available live or in a recorded version on the Company’s website under “Investor Relations” at www.brooklinebancorp.com.

ABOUT BROOKLINE BANCORP, INC.

Brookline Bancorp, Inc., a bank holding company with approximately $5.2 billion in assets and 47 branches throughout Massachusetts and Rhode Island, is headquartered in Boston, Massachusetts and operates as the holding company for Brookline Bank, Bank Rhode Island, and First Ipswich Bank. The Company provides commercial and retail banking services and cash management and investment services to customers throughout Central New England. More information about Brookline Bancorp, Inc. and its banks can be found at the following websites: www.brooklinebank.com, www.bankri.com, and www.firstipswich.com.

FORWARD-LOOKING STATEMENTS

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

BASIS OF PRESENTATION

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

NON-GAAP FINANCIAL MEASURES

The Company uses certain non-GAAP financial measures, such as net earnings from operations, the allowance for loan and lease losses related to originated loans and leases as a percentage of originated loans and leases, tangible book value per common share and tangible stockholders’ equity to tangible assets. These non-GAAP financial measures provide information for investors to effectively analyze financial trends of ongoing business activities, and to enhance comparability with peers across the financial services sector. A detailed reconciliation table of the Company's GAAP to the non-GAAP measures is attached.
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Selected Financial Highlights (Unaudited)
                   

At and for the Three MonthsEnded June 30,
 

At and for the Six MonthsEnded June 30,
2013 2012 2013 2012
(In Thousands Except Per Share Data)
 
Earnings Data:
Net interest income $ 45,363 $ 42,759 $ 89,030 $ 86,392
Provision for credit losses 2,439 6,678 4,294 9,925
Non-interest income 3,138 4,721 6,466 8,315
Non-interest expense 30,815 28,621 61,585 61,069
Income before income taxes 15,247 12,181 29,617 23,713
Net income attributable to Brookline Bancorp, Inc. 9,490 7,529 18,304 13,878
 
Performance Ratios:
Net interest margin (1) 3.78 % 3.81 % 3.74 % 3.85 %
Interest-rate spread (1) 3.62 % 3.63 % 3.58 % 3.67 %
Return on average assets 0.74 % 0.61 % 0.72 % 0.57 %
Return on average stockholders' equity 6.16 % 5.04 % 5.93 % 4.64 %
Return on average tangible stockholders' equity 8.28 % 6.66 % 7.98 % 6.41 %

Efficiency ratio
63.53 % 60.28 % 64.49 % 64.48 %
 
Per Common Share Data:
Net income — Basic $ 0.14 $ 0.11 $ 0.26 $ 0.20
Net income — Diluted 0.14 0.11 0.26 0.20
Cash dividends declared 0.085 0.085

0.17

0.17
Book value per share (end of period) 8.73 8.59 8.73 8.59
Tangible book value per share (end of period) (non-GAAP) 6.48 6.26 6.48 6.26
Stock price (end of period) 8.68 8.85 8.68 8.85
 
(1) Calculated on a fully tax-equivalent basis.
 
 

At and for the Three Months Ended
Jun 30, 2013 Mar 31, 2013 Dec 31, 2012 Sep 30, 2012 Jun 30, 2012
(Dollars in Thousands)
Balance Sheet:
Total assets $ 5,150,480 $ 5,110,378 $ 5,147,534 $ 5,061,444 $ 4,972,381
Total loans and leases 4,205,015 4,173,985 4,175,712 4,144,012 4,012,544
Total deposits 3,656,981 3,626,033 3,616,259 3,568,016 3,521,206
Brookline Bancorp, Inc. stockholders’ equity 611,284 614,039 612,097 605,962 598,865
 
Asset Quality:
Nonperforming assets $ 18,986 $ 22,941 $ 23,737 $ 23,675 $ 23,831
Nonperforming assets as a percentage of total assets 0.37 % 0.45 % 0.46 % 0.47 % 0.48 %
Allowance for loan and lease losses $ 44,281 $ 42,532 $ 41,152 $ 38,913 $ 37,431
Allowance for loan and lease losses as a percentage
of total loans and leases 1.05 % 1.02 % 0.98 % 0.94 % 0.93 %
Net loan and lease charge-offs $ 639 $ 419 $ 826 $ 1,539 $ 3,675
Net loan and lease charge-offs as a percentage
of average loans and leases (annualized) 0.06 % 0.04 % 0.08 % 0.15 % 0.37 %
 
Capital Ratios:
Stockholders’ equity to total assets 11.87 % 12.02 % 11.89 % 11.97 % 12.04 %
Tangible stockholders’ equity to
tangible assets (non-GAAP) 9.10 % 9.20 % 9.08 % 9.08 % 9.07 %
 

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets (Unaudited)
               
June 30, March 31, December 31, September 30, June 30,
2013 2013 2012 2012 2012
(In Thousands Except Share Data)
ASSETS
Cash and due from banks $ 33,008 $ 39,330 $ 78,441 $ 41,617 $ 118,411
Short-term investments   66,787     52,766     38,656     34,655     98,677  
Total cash and cash equivalents   99,795     92,096     117,097     76,272     217,088  
Investment securities available-for-sale 479,177 486,625 481,323 466,822 384,533
Investment securities held-to-maturity   500     500     500     500     500  
Total investment securities   479,677     487,125     481,823     467,322     385,033  
Loans held-for-sale 4,221 839 3,233 2,303 585
Loans and leases:
Commercial real estate loans:
Commercial real estate mortgage 1,349,051 1,299,496 1,301,233 1,262,411 1,221,202
Multi-family mortgage 594,939 585,669 606,533 628,162 612,213
Construction   112,684     115,896     98,197     86,345     88,759  
Total commercial real estate loans   2,056,674     2,001,061     2,005,963     1,976,918     1,922,174  
Commercial loans and leases:
Commercial 376,507 399,781 382,277 346,744 319,867
Equipment financing 476,724 448,701 420,991 426,597 387,093
Condominium association   41,859     43,043     44,187     43,732     43,596  
Total commercial loans and leases   895,090     891,525     847,455     817,073     750,556  
Indirect automobile loans   479,782     510,954     542,344     574,279     581,063  
Consumer loans:
Residential mortgage 507,099 509,155 511,109 505,553 492,489
Home equity 257,839 254,048 261,562 263,194 260,623
Other consumer   8,531     7,242     7,279     6,995     5,639  
Total consumer loans   773,469     770,445     779,950     775,742     758,751  

Total loans and leases
4,205,015 4,173,985 4,175,712 4,144,012 4,012,544
Allowance for loan and lease losses   (44,281 )   (42,532 )   (41,152 )   (38,913 )   (37,431 )
Net loans and leases   4,160,734     4,131,453     4,134,560     4,105,099     3,975,113  
Restricted equity investments 66,627 66,553 68,661 68,661 61,291
Premises and equipment, net 76,867 74,223 # 70,791 # 66,814 56,248
Building held-for-sale - - - 6,046 6,046
Deferred tax asset 32,739 29,123 27,197 27,354 25,656
Goodwill, net 137,890 137,890 # 137,890 # 137,890 137,890
Identified intangible assets, net of accumulated amortization 19,168 20,345 21,510 23,307 24,578
Other real estate owned and repossessed assets, net 1,493 1,248 1,491 2,386 2,765
Other assets   71,269     69,483     83,281     77,990     80,088  
Total assets $ 5,150,480   $ 5,110,378   $ 5,147,534   $ 5,061,444   $ 4,972,381  
 
LIABILITIES AND EQUITY
Deposits:
Demand checking accounts $ 644,507 $ 623,315 $ 623,274 $ 590,189 $ 546,036
NOW accounts 196,778 194,313 212,858 183,478 185,234
Savings accounts 503,170 509,967 515,367 520,614 503,507
Money market accounts 1,340,024 1,303,231 1,253,819 1,231,206 1,236,967
Certificate of deposit accounts   972,502     995,207     1,010,941     1,042,529     1,049,462  
Total deposits   3,656,981     3,626,033     3,616,259     3,568,016     3,521,206  
Borrowed funds:
Advances from the FHLBB 785,565 759,675 790,865 771,110 733,394
Other borrowed funds   44,501     60,772     63,104     57,146     60,707  
Total borrowed funds   830,066     820,447     853,969     828,256     794,101  
Mortgagors’ escrow accounts 7,465 7,823 6,946 7,066 6,942
Accrued expenses and other liabilities   41,097     38,825     54,551     47,889     47,328  
Total liabilities   4,535,609     4,493,128     4,531,725     4,451,227     4,369,577  
 
Equity:
Brookline Bancorp, Inc. stockholders’ equity:
Common stock, $0.01 par value; 200,000,000 shares authorized;
75,744,445 shares, 75,744,445 shares, 75,749,825 shares,
75,749,819 shares and 75,414,713 shares issued, respectively 754 754 754 754 754
Additional paid-in capital 619,036 618,711 618,429 618,176 618,184
Retained earnings, partially restricted 59,747 56,211 53,358 47,451 42,006
Accumulated other comprehensive income (4,441 ) 2,233 3,483 3,569 1,969
Treasury stock, at cost; 5,373,733 shares (62,107 ) (62,107 ) (62,107 ) (62,107 ) (62,107 )
Unallocated common stock held by ESOP; 312,792 shares,
323,355 shares, 333,918 shares, 344,991 shares,
and 356,064 shares, respectively   (1,705 )   (1,763 )   (1,820 )   (1,881 )   (1,941 )
Total Brookline Bancorp, Inc. stockholders’ equity   611,284     614,039     612,097     605,962     598,865  
Noncontrolling interest in subsidiary   3,587     3,211     3,712     4,255     3,939  
Total equity   614,871     617,250     615,809     610,217     602,804  
Total liabilities and equity $ 5,150,480   $ 5,110,378   $ 5,147,534   $ 5,061,444   $ 4,972,381  
 

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
               
Three Months Ended June 30, Six Months Ended June 30,
2013 2012 2013 2012
(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases $ 50,644 $ 50,135 $ 100,063 $ 99,778
Debt securities 1,934 1,541 3,786 4,770
Short-term investments 19 68 50 95
Marketable and restricted equity securities   303     95     612     187  
Total interest and dividend income   52,900     51,839     104,511     104,830  
 
Interest expense:
Deposits 4,743 5,463 9,578 10,980
Borrowed funds and subordinated debt   2,794     3,617     5,903     7,458  
Total interest expense   7,537     9,080     15,481     18,438  
 
Net interest income 45,363 42,759 89,030 86,392
Provision for credit losses   2,439     6,678     4,294     9,925  
Net interest income after provision for credit losses   42,924     36,081     84,736     76,467  
 
Non-interest income:
Fees, charges and other income 3,762 4,168 7,402 7,901
Loss from investments in affordable housing projects (624 ) (244 ) (936 ) (383 )
Gain on sales of securities, net   -     797     -     797  
Total non-interest income   3,138     4,721     6,466     8,315  
 
Non-interest expense:
Compensation and employee benefits 16,697 14,238 32,993 28,926
Occupancy 2,865 2,503 5,948 5,179
Equipment and data processing 4,150 3,632 8,163 7,275
Professional services 1,513 2,554 3,014 9,008
FDIC insurance 936 1,230 1,870 2,150
Advertising and marketing 768 774 1,438 1,476
Amortization of identified intangible assets 1,177 1,271 2,343 2,554
Other   2,709     2,419     5,816     4,501  
Total non-interest expense   30,815     28,621     61,585     61,069  
 
Income before income taxes 15,247 12,181 29,617 23,713
Provision for income taxes   5,382     4,398     10,511     9,296  
Net income 9,865 7,783 19,106 14,417
Less net income attributable to noncontrolling
interest in subsidiary   375     254     802     539  
Net income attributable to Brookline Bancorp, Inc. $ 9,490   $ 7,529   $ 18,304   $ 13,878  
 
Earnings per common share:
Basic $ 0.14 $ 0.11 $ 0.26 $ 0.20
Diluted 0.14 0.11 0.26 0.20
 
Weighted average common shares outstanding during the period:
Basic 69,774,703 69,677,656 69,768,777 69,671,130
Diluted 69,833,541 69,715,890 69,823,615 69,706,694
 
Dividends declared per common share $ 0.085 $ 0.085 $

0.17
$

0.17
 
 
* Certain amounts previously reported have been reclassified to conform to the current period's presentation.
 

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Asset Quality Analysis (Unaudited)
                   

At and for the Three Months Ended
Jun 30, 2013 Mar 31, 2013 Dec 31, 2012 Sep 30, 2012 Jun 30, 2012

 

(Dollars in Thousands)
NONPERFORMING ASSETS:
 
Loans and leases accounted for on a nonaccrual basis:
Commercial real estate mortgage $ 2,682 $ 3,970 $ 4,014 $ 3,610 $ 3,674
Multi-family mortgage 1,593 4,132 4,233 5,157 3,129
Construction   -     -     -     -     344  
Total commercial real estate loans 4,275 8,102 8,247 8,767 7,147
 
Commercial 4,680 5,035 5,454 5,432 6,896
Equipment financing 4,014 3,595 3,873 3,040 2,375
Condominium association   4     6     8     9     11  
Total commercial loans and leases 8,698 8,636 9,335 8,481 9,282
 
Indirect automobile loans 156 62 99 80 91
 
Residential mortgage 2,786 3,724 3,804 2,924 3,710
Home equity 1,557 1,150 716 988 831
Other consumer   21     19     45     49     5  
Total consumer loans 4,364 4,893 4,565 3,961 4,546
 
Total nonaccrual loans and leases 17,493 21,693 22,246 21,289 21,066
 
Other real estate owned 1,002 943 903 1,690 2,082
Other repossessed assets   491     305     588     696     683  
 
Total nonperforming assets $ 18,986   $ 22,941   $ 23,737   $ 23,675   $ 23,831  
 
 
Troubled debt restructurings on accrual 9,631 9,816 10,414 9,232 9,504
Troubled debt restructurings on nonaccrual   6,919     7,514     6,786     3,821     1,835  
Total troubled debt restructurings $ 16,550   $ 17,330   $ 17,200   $ 13,053   $ 11,339  
 
 
Nonperforming loans and leases as a percentage of total loans and leases 0.42 % 0.52 % 0.53 % 0.51 % 0.52 %
Nonperforming assets as a percentage of total assets 0.37 % 0.45 % 0.46 % 0.47 % 0.48 %
 
 
PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:
 
Allowance for loan and lease losses at beginning of period $ 42,532 $ 41,152 $ 38,913 $ 37,431 $ 34,428
Charge-offs (1,028 ) (661 ) (1,527 ) (1,807 ) (3,970 )
Recoveries   389     242     701     268     295  
Net charge-offs (639 ) (419 ) (826 ) (1,539 ) (3,675 )
Provision for loan and lease losses   2,388     1,799     3,065     3,021     6,678  
Allowance for loan and lease losses at end of period $ 44,281   $ 42,532   $ 41,152   $ 38,913   $ 37,431  
 
Allowance for loan and lease losses as a percentage of
total loans and leases 1.05 % 1.02 % 0.98 % 0.94 % 0.93 %
Allowance for loan and lease losses related to originated
loans and leases as a percentage of originated loans and leases 1.34 % 1.34 %

1.33
%

1.31
% 1.33 %
 
NET CHARGE-OFFS:
 
Commercial real estate loans $ 81 $ (4 ) $ - $ (38 ) $ (40 )
Commercial loans and leases 295 166 196 1,179 3,292
Indirect automobile loans 170 231 366 301 225
Consumer loans   93     26     264     97     198  
Total net charge-offs $ 639   $ 419   $ 826   $ 1,539   $ 3,675  
 
Net loan and lease charge-offs as a percentage of
average loans and leases (annualized) 0.06 % 0.04 % 0.08 % 0.15 % 0.37 %
 

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Average Yields / Costs (Unaudited)
                                   
Three Months Ended
June 30, 2013 March 31, 2013 June 30, 2012

AverageBalance
Interest (1)

AverageYield/Cost

AverageBalance
Interest (1)

AverageYield/Cost

AverageBalance
Interest (1)

AverageYield/Cost

(Dollars in Thousands)
Assets:
Interest-earning assets:
Short-term investments $ 52,541 $ 19 0.14 % $ 57,695 $ 29 0.20 % $ 71,675 $ 68 0.38 %
Debt securities (2) 487,271 1,940 1.59 % 471,509 1,861 1.58 % 430,206 1,548 1.44 %
Marketable and restricted equity securities (2) 66,988 350 2.10 % 68,550 357 2.10 % 54,583 110 0.81 %
Commercial real estate loans (3) 2,034,920 23,863 4.67 % 1,988,501 24,315 4.89 % 1,859,292 23,607 5.10 %
Commercial loans (3) 420,194 6,531 6.16 % 426,573 4,569 4.28 % 412,476 4,713 4.58 %
Equipment financing (3) 467,156 8,279 7.10 % 436,983 8,001 7.38 % 348,426 7,428 8.53 %
Indirect automobile loans (3) 494,571 4,523 3.67 % 526,923 4,916 3.78 % 580,678 6,033 4.18 %
Residential mortgage loans (3) 512,975 5,101 3.98 % 508,303 5,165 4.10 % 489,688 5,445 4.45 %
Other consumer loans (3)   264,183     2,508 3.81 %   265,047     2,616 4.00 %   266,572     3,003 4.53 %
Total interest-earning assets 4,800,799   53,114 4.41 % 4,750,084   51,829 4.38 % 4,513,596   51,955 4.62 %
Allowance for loan and lease losses (42,954 ) (41,487 ) (35,962 )
Non-interest-earning assets   380,299     362,566     427,299  
Total assets $ 5,138,144   $ 5,071,163   $ 4,904,933  
 
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW accounts $ 195,269 $ 41 0.09 % $ 190,320 $ 51 0.11 % $ 189,118 $ 57 0.12 %
Savings accounts 508,451 316 0.25 % 514,383 337 0.27 % 505,601 443 0.35 %
Money market accounts 1,335,300 2,036 0.61 % 1,294,593 2,061 0.65 % 1,204,754 2,260 0.75 %
Certificates of deposit   982,257     2,350 0.96 %   1,002,602     2,385 0.96 %   1,056,021     2,703 1.03 %
Total interest-bearing deposits 3,021,277 4,743 0.63 % 3,001,898 4,834 0.65 % 2,955,494 5,463 0.74 %
Advances from the FHLBB 760,237 2,682 1.41 % 753,270 2,955 1.59 % 694,746 3,424 1.98 %
Other borrowed funds   48,655     112 0.93 %   63,065     154 0.99 %   60,550     193 1.28 %
Total interest-bearing liabilities 3,830,169   7,537 0.79 % 3,818,233   7,943 0.84 % 3,710,790   9,080 0.98 %
Non-interest-bearing liabilities:
Demand checking accounts 640,725 607,878 542,100
Other non-interest-bearing liabilities   47,589     24,575     50,327  
Total liabilities 4,518,483 4,450,686 4,303,217
Brookline Bancorp, Inc. stockholders’ equity 616,327 616,627 597,908
Noncontrolling interest in subsidiary   3,334     3,850     3,808  
Total liabilities and equity $ 5,138,144   $ 5,071,163   $ 4,904,933  
Net interest income (tax-equivalent basis) /
Interest-rate spread (4) 45,577 3.62 % 43,886 3.54 % 42,875 3.63 %
Less adjustment of tax-exempt income   214   217   116
Net interest income $ 45,363 $ 43,669 $ 42,759
Net interest margin (5) 3.78 % 3.70 % 3.81 %
 

(1) Tax-exempt income on debt securities, equity securities and revenue bonds included in commercial real estate loans is included on a tax-equivalent basis.

(2) Average balances include unrealized gains (losses) on securities available-for-sale. Dividend payments may not be consistent and average yield on equity securities may vary from month to month.

(3) Loans on nonaccrual status are included in the average balances.

(4) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.

(5) Net interest margin represents net interest income (tax-equivalent basis) divided by average interest-earning assets.
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Average Yields / Costs (Unaudited)
                       
Six Months Ended
June 30, 2013 June 30, 2012

AverageBalance
Interest (1)

AverageYield/Cost

AverageBalance
Interest (1)

AverageYield/Cost
(Dollars in Thousands)
Assets:
Interest-earning assets:
Short-term investments $ 53,586 $ 50 0.19 % $ 64,780 $ 95 0.29 %
Debt securities (2) 479,433 3,799 1.58 % 460,483 4,785 2.08 %
Marketable and restricted equity securities (2) 67,764 705 2.09 % 55,263 219 0.79 %
Commercial real estate loans (3) 2,018,117 48,159 4.76 % 1,844,566 46,845 5.10 %
Commercial loans (3) 415,633 11,242 5.39 % 405,639 9,326 4.61 %
Equipment financing (3) 453,642 16,138 7.15 % 342,558 14,465 8.45 %
Indirect automobile loans (3) 510,657 9,439 3.73 % 577,802 12,280 4.27 %
Residential mortgage loans (3) 510,801 10,266 4.04 % 490,467 10,989 4.48 %
Other consumer loans (3)   264,433     5,124 3.91 %   270,065     6,043 4.50 %
Total interest-earning assets 4,774,066   104,922 4.40 % 4,511,623   105,047 4.67 %
Allowance for loan and lease losses (42,225 ) (34,515 )
Non-interest-earning assets   371,475     406,052  
Total assets $ 5,103,316   $ 4,883,160  
 
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW accounts $ 192,808 $ 86 0.09 % $ 184,102 $ 110 0.12 %
Savings accounts 511,401 660 0.26 % 508,374 942 0.37 %
Money market accounts 1,315,056 4,097 0.63 % 1,174,149 4,412 0.76 %
Certificates of deposit   992,380     4,735 0.96 %   1,067,148     5,516 1.04 %
Total interest-bearing deposits 3,011,645 9,578 0.64 % 2,933,773 10,980 0.75 %
Advances from the FHLBB 756,773 5,637 1.50 % 709,373 7,095 2.01 %
Other borrowed funds   54,303     266 0.99 %   59,574     363 1.22 %
Total interest-bearing liabilities 3,822,721   15,481 0.82 % 3,702,720   18,438 1.00 %
Non-interest-bearing liabilities:
Demand checking accounts 624,386 525,811
Other non-interest-bearing liabilities   35,750     52,754  
Total liabilities 4,482,857 4,281,285
Brookline Bancorp, Inc. stockholders’ equity 616,868 598,277
Noncontrolling interest in subsidiary   3,591     3,598  
Total liabilities and equity $ 5,103,316   $ 4,883,160  
Net interest income (tax-equivalent basis) /
Interest-rate spread (4) 89,441 3.58 % 86,609 3.67 %
Less adjustment of tax-exempt income   411   217
Net interest income $ 89,030 $ 86,392
Net interest margin (5) 3.74 % 3.85 %
 

(1) Tax-exempt income on debt securities, equity securities and revenue bonds included in commercial real estate loans is included on a tax-equivalent basis.

(2) Average balances include unrealized gains (losses) on securities available-for-sale. Dividend payments may not be consistent and average yield on equity securities may vary from month to month.

(3) Loans on nonaccrual status are included in the average balances.

(4) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.

(5) Net interest margin represents net interest income (tax-equivalent basis) divided by average interest-earning assets.
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Non-GAAP Financial Information (Unaudited)
                   
Three Months Ended June 30, Six Months Ended June 30,
2013 2012 2013 2012
Reconciliation Table - Non-GAAP Financial Information (Dollars in Thousands Except Share Data)
 
Net income attributable to Brookline Bancorp, Inc. $ 9,490 $ 7,529 $ 18,304 $ 13,878
Add:
Acquisition-related expenses (after-tax)   -     -     -     3,972  
 
Net earnings from operations $ 9,490   $ 7,529   $ 18,304   $ 17,850  
 
Operating earnings per common share:
Basic $ 0.14 $ 0.11 $ 0.26 $ 0.26
Diluted 0.14 0.11 0.26 0.26
 
Weighted average common shares outstanding during the period:
Basic 69,774,703 69,677,656 69,768,777 69,671,130
Diluted 69,833,541 69,715,890 69,823,615 69,706,694
 
 
Jun 30, 2013 Mar 31, 2013 Dec 31, 2012 Sep 30, 2012   Jun 30, 2012
(Dollars in Thousands)
 
Brookline Bancorp, Inc. stockholders’ equity $ 611,284 $ 614,039 $ 612,097 $ 605,962

$
598,865
Less:
Goodwill 137,890 137,890 137,890 137,890 137,890
Identified intangible assets   19,168     20,345     21,510     23,307     24,578  
Tangible stockholders' equity $ 454,226   $ 455,804   $ 452,697   $ 444,765   $ 436,397  
 
Total assets

$
5,150,480

$
5,110,378

$
5,147,534

$
5,061,444

$
4,972,381
Less:
Goodwill 137,890 137,890 137,890 137,890 137,890
Identified intangible assets   19,168     20,345     21,510     23,307     24,578  
Tangible assets $ 4,993,422   $ 4,952,143   $ 4,988,134   $ 4,900,247   $ 4,809,913  

 

 
Tangible stockholders’ equity to tangible assets 9.10 % 9.20 % 9.08 % 9.08 % 9.07 %
 
 
Jun 30, 2013 Mar 31, 2013 Dec 31, 2012 Sep 30, 2012 Jun 30, 2012
(Dollars in Thousands Except Per Share Data)
 
Tangible stockholders' equity $ 454,226   $ 455,804   $ 452,697   $ 444,765   $ 436,397  
 
Number of common shares issued 75,744,445 75,744,445 75,749,825 75,749,819 75,414,713
Less:
Treasury shares 5,373,733 5,373,733 5,373,733 5,373,733 5,373,733
Unallocated ESOP shares   312,792     323,355     333,918     344,991     356,064  
Number of common shares outstanding   70,057,920     70,047,357     70,042,174     70,031,095     69,684,916  
 
Tangible book value per common share $ 6.48 $ 6.51 $ 6.46 $ 6.35 $ 6.26
 
 
Jun 30, 2013 Mar 31, 2013 Dec 31, 2012 Sep 30, 2012 Jun 30, 2012
(Dollars in Thousands)
 
Allowance for loan and lease losses $ 44,281 $ 42,532 $ 41,152 $ 38,913 $ 37,431
Less:
Allowance for acquired loans and leases losses  

620
    -     -     -     -  
Allowance for originated loan and lease losses $

43,661
  $ 42,532   $ 41,152   $ 38,913   $ 37,431  
 
Total loans and leases $ 4,205,015 $ 4,173,985 $ 4,175,712 $ 4,144,012 $ 4,012,544
Less:
Total acquired loans and leases   938,815     997,988     1,059,610     1,149,585     1,187,844  
Total originated loans and leases $ 3,266,200   $ 3,175,997   $ 3,116,102   $ 2,994,427   $ 2,824,700  
 
Allowance for loan and lease losses related to
originated loans and leases as a percentage
of originated loans and leases 1.34 % 1.34 %

1.33
%

1.31
% 1.33 %
 

Copyright Business Wire 2010

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