Brookline Bancorp Announces Third Quarter Net Income of $11.4 Million, EPS of $0.16
Brookline Bancorp Announces Third Quarter Net Income of $11.4 Million, EPS
of $0.16
Business Fundamentals Remain Strong
Loan and Deposit Growth Continues
Business Wire
BROOKLINE, Mass. -- October 24, 2012
Brookline Bancorp, Inc. (NASDAQ: BRKL) today reported net income of $11.4
million, or $0.16 fully diluted earnings per share (EPS), for the quarter
ended September 30, 2012. Net income for the nine months ended September 30,
2012 was $25.3 million, or $0.36 fully diluted EPS, compared to $20.5 million,
or $0.35 fully diluted EPS, for the first nine months of 2011.
Paul Perrault, President and Chief Executive Officer of Brookline Bancorp,
Inc., stated: “Our core business fundamentals remain strong, with continued
growth in loans and deposits in the third quarter. Net interest income has
benefited from that growth and I’m happy to report that provisions for loan
and lease losses have returned to normal levels. The second phase of our core
system conversion was successful and we are looking forward to moving into our
new headquarters over the weekend.”
NET INTEREST INCOME
Net interest income for the third quarter 2012 increased $3.6 million to $46.4
million from $42.8 million in the second quarter of 2012 and $27.9 million in
the third quarter 2011 as a result of the acquisition of Bancorp Rhode Island.
An increase of $3.1 million in interest income on loans and leases accounts
for the majority of the $3.6 million increase, with an increase in investment
income accounting for another $0.4 million of the increase in net interest
income. Interest expense was flat for the third quarter 2012 as compared to
the second quarter. Included in interest income on loans and leases is $1.4
million of periodic yield adjustments on acquired loans as required under
GAAP. The remaining $1.7 million increase in interest income on loans and
leases is largely driven by growth in the lending portfolios. Net interest
income for the first nine months of 2012 increased to $132.8 million from
$81.7 million in the first nine months of 2011.
Net interest margin for the third quarter 2012 was 4.00 percent, up from 3.81
percent at June 30, 2012. The inclusion of the $1.4 million of yield
adjustments in income accounted for 14 basis points of the 19 basis-point
increase in net interest margin for the third quarter 2012. The normalized net
interest margin of 3.86 percent is up from 3.81 percent at June 30, 2012
largely as a result of Brookline Bancorp’s continuing efforts to maintain loan
yields in a persistently challenging interest-rate environment.
BALANCE SHEET
Total assets at September 30, 2012 grew to $5.1 billion, an annualized
increase of 7.2 percent from the prior quarter and 60.3 percent from September
30, 2011.
The loan and lease portfolio grew to $4.1 billion as of September 30, 2012, up
13.3 percent annualized from the prior quarter and 14.2 percent annualized
from December 31, 2011, after adjustment for the $1.1 billion in loans and
leases acquired from Bancorp Rhode Island, Inc., on January 1, 2012. The
Company continued to benefit from strong growth in its commercial real estate
and commercial loan and lease portfolios, which reached $2.8 billion, or 67.4
percent of total loans, at September 30, 2012. The commercial real estate and
commercial loan and lease portfolios increased 18.1 percent annualized during
the third quarter 2012 and 21.5 percent annualized for the first nine months
of 2012, after adjustment for the $0.8 billion in commercial real estate and
commercial loans and leases acquired from Bancorp Rhode Island, to $2.8
billion. These increases offset the annualized 4.7 percent decline from June
30, 2012 to September 30, 2012 in the indirect automobile portfolio, a decline
that reflected the Company’s selectiveness in the interest rates at which it
is willing to lend in a highly competitive market.
Deposits of $3.6 billion at September 30, 2012 were up 5.3 percent annualized
from June 30, 2012 and 63.7 percent from September 30, 2011. Core deposits,
which increased from 70.2 percent to 70.8 percent of deposits
quarter-to-quarter, increased 8.7 percent annualized in the third quarter
2012. Demand checking accounts grew at an annualized rate of 32.3 percent
during the quarter ended September 30, 2012. Total borrowings increased 17.2
percent on an annualized basis to $0.8 billion at September 30, 2012.
Cash and cash equivalents were $76.3 million as of September 30, 2012 as
compared to $217.1 million as of June 30, 2012, a decrease that reflects the
redeployment of cash to fund loan growth and security reinvestment efforts to
reduce further pre-payment risk. As a result, investment securities
available-for-sale of $466.8 million increased 21.4 percent from June 30, 2012
to September 30, 2012, with total investment securities at 10.6 percent of
total assets.
Stockholders’ equity to total assets was 11.97 percent at September 30, 2012.
The tangible stockholders' equity to tangible assets ratio remained relatively
constant at 9.08 percent at September 30, 2012 when compared with 9.07 percent
at June 30, 2012 and declined from 14.49 percent at September 30, 2011 as a
result of the Brookline Bancorp’s acquisition of Bancorp Rhode Island.
NON-INTEREST INCOME
Non-interest income was $3.8 million for the third quarter 2012, down $0.9
million from the second quarter 2012, in part, as a result of the Company
waiving certain deposit fees during the month of the core system conversion
and, in part, as a result of a reduction of late fee income on several large
loans that paid off during the quarter. Additionally, gains on sales of
investment securities in the third quarter decreased $0.8 million as compared
to the second quarter, which included $0.8 million of gains on sales of
investment securities in connection with a partial restructuring of the
investment portfolios. Non-interest income was $12.1 million for the first
nine months of 2012, up $8.5 million from the first nine months of 2011. The
growth in the first nine months of 2012 was primarily driven by $7.9 million
of non-interest income attributable to Bancorp Rhode Island.
NON-INTEREST EXPENSE AND TAX PROVISION
Non-interest expense of $30.4 million in the third quarter 2012 increased $1.8
million from the second quarter 2012 and $13.4 million from the third quarter
2011. The increase from third quarter 2011 to third quarter 2012 reflects the
Company’s acquisition of Bancorp Rhode Island. Although compensation expense
increased $0.9 million in the third quarter 2012, it remained consistent with
compensation expense as reported in the first quarter 2012 despite business
and infrastructure growth. This increase in compensation quarter-to-quarter
was offset by a decrease of $0.6 million in professional services and a $0.3
million decline in FDIC insurance premiums quarter-to-quarter. Equipment and
data processing expense for the quarter ended September 30, 2012 increased
$0.4 million, largely as a result of software license termination fees. Other
non-interest expense increased $1.3 million on a linked quarter basis
reflecting operating expenses related to the Company’s continued migration to
standardized operating and financial reporting platforms.
The tax provision benefited, in part, from the inclusion of approximately $0.3
million in additional federal tax credits for the refurbishment of the
Company’s new headquarters.
ASSET QUALITY
Asset quality remains strong. Nonperforming loans and leases increased
slightly from $21.1 million at June 30, 2012 to $21.3 million at September 30,
2012. However, due to growth in the loan and lease portfolio, the ratio of
nonperforming loans to total loans and leases decreased slightly from 0.52
percent at June 30, 2012 to 0.51 percent at September 30, 2012. Nonperforming
assets at September 30, 2012 totaled $23.7 million or 0.47 percent of total
assets, down from $23.8 million, or 0.48 percent of total assets, at June 30,
2012.
The provision for loan and lease losses was $3.0 million for the third quarter
2012, down from $6.7 million in the second quarter 2012, and up from $0.9
million in the third quarter 2011. Net charge-offs for the third quarter 2012
were $1.5 million, or 0.15 percent of average loans and leases on an
annualized basis, compared to $3.7 million, or 0.37 percent of average loans
and leases, in the second quarter 2012, and $0.6 million, or 0.09 percent of
average loans and leases, for the third quarter 2011.
The allowance for loan and lease losses was $38.9 million at September 30,
2012, compared to $37.4 million at June 30, 2012 and $31.1 million at
September 30, 2011. The allowance for loan and lease losses as a percent of
total originated and acquired loans and leases was 0.94 percent at September
30, 2012, compared to 0.93 percent at June 30, 2012 and 1.17 percent at
September 30, 2011. The allowance for loan and lease losses as a percent of
originated loans and leases was 1.30 percent at September 30, 2012, as
compared to 1.33 percent at June 30, 2012.
DIVIDEND DECLARED
The Company’s Board of Directors approved a dividend of $0.085 per share. The
dividend will be paid on November 23, 2012, to shareholders of record on
November 9, 2012.
CONFERENCE CALL
The Company will conduct a conference call/webcast at 1:30 pm eastern time on
Thursday, October 25, 2012 to discuss the results for the quarter, business
highlights and outlook. The call can be accessed by dialing 877-317-6789
(United States) or 412-317-6789 (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
10019385. The call will be available live or in a recorded version on the
Company’s website under “Investor Relations” at www.brooklinebank.com.
ABOUT BROOKLINE BANCORP, INC.
Brookline Bancorp, Inc., a bank holding company with approximately $5.1
billion in assets and 44 branches throughout Massachusetts and Rhode Island,
is headquartered in Brookline, 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.fnbi.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 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, 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 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)
As of and for the Three Months
Ended September 30, As of and for the Nine Months
Ended September 30,
2012 2011 2012 2011
(In Thousands Except Per Share Data)
Earnings Data:
Net interest $ 46,411 $ 27,948 $ 132,805 $ 81,686
income
Provision for 2,862 891 12,787 2,789
credit losses
Non-interest 3,785 928 12,101 3,572
income
Non-interest 30,436 17,009 91,507 46,405
expense
Income before 16,898 10,976 40,612 36,064
income taxes
Net income
attributable 11,401 6,275 25,279 20,543
to Brookline
Bancorp, Inc.
Performance
Ratios:
Net interest 4.00 % 3.74 % 3.88 % 3.75 %
margin (1)
Interest rate 3.83 % 3.48 % 3.70 % 3.48 %
spread (1)
Return on 0.90 % 0.80 % 0.68 % 0.91 %
average assets
Return on
average 7.53 % 5.00 % 5.63 % 5.48 %
stockholders'
equity
Per Common
Share Data:
Net income — $ 0.16 $ 0.11 $ 0.36 $ 0.35
Basic
Net income — 0.16 0.11 0.36 0.35
Diluted
Cash dividends 0.085 0.085 0.255 0.255
declared
Book value per
share (end of 8.61 8.48 8.61 8.48
period)
Tangible book
value per 6.32 7.60 6.32 7.60
share (end of
period)
Stock price
(end of 8.82 7.71 8.82 7.71
period)
(1) Calculated
on a fully
tax-equivalent
basis.
At or for the Three Months Ended
Sep 30, 2012 Jun 30, 2012 Mar 31, 2012 Dec 31, 2011 Sep 30, 2011
(Dollars in Thousands)
Balance Sheet:
Total assets $ 5,061,444 $ 4,972,381 $ 4,877,124 $ 3,299,013 $ 3,157,498
Total loans 4,146,315 4,013,129 3,935,518 2,720,821 2,662,076
and leases
Total deposits 3,568,016 3,521,206 3,459,333 2,252,331 2,179,605
Brookline
Bancorp, Inc. 605,962 598,865 597,531 503,602 501,890
stockholders’
equity
Asset Quality:
Nonperforming $ 23,675 $ 23,831 $ 14,648 $ 8,796 $ 10,486
assets
Nonperforming
assets as a 0.47 % 0.48 % 0.30 % 0.27 % 0.33 %
percentage of
total assets
Allowance for
loan and lease $ 38,913 $ 37,431 $ 34,428 $ 31,703 $ 31,128
losses
Allowance for
loan and lease
losses as a
percentage
of total loans 0.94 % 0.93 % 0.87 % 1.17 % 1.17 %
and leases
Net loan and
lease $ 1,539 $ 3,675 $ 522 $ 267 $ 610
charge-offs
Net loan and
lease
charge-offs as
a percentage
of average
loans and 0.15 % 0.37 % 0.05 % 0.04 % 0.09 %
leases
(annualized)
Capital
Ratios:
Stockholders’
equity to 11.97 % 12.04 % 12.25 % 15.27 % 15.90 %
total assets
Tangible
stockholders’
equity to 9.08 % 9.07 % 9.18 % 13.93 % 14.49 %
tangible
assets
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets (Unaudited)
September 30, June 30, March 31, December 31, September 30,
2012 2012 2012 2011 2011
(In Thousands Except Share Data)
ASSETS
Cash and due from $ 41,617 $ 118,411 $ 88,884 $ 56,513 $ 22,919
banks
Short-term 34,655 98,677 44,382 49,783 82,962
investments
Total cash and 76,272 217,088 133,266 106,296 105,881
cash equivalents
Investment
securities 466,822 384,533 461,498 217,431 253,510
available-for-sale
Restricted equity 68,661 61,291 53,554 39,283 39,283
securities
Other securities 500 500 500 - -
Total securities 535,983 446,324 515,552 256,714 292,793
Loans and leases:
Commercial real
estate loans:
Commercial real 1,262,411 1,221,202 1,200,412 748,736 716,338
estate mortgage
Multi-family 628,162 612,213 596,285 481,459 481,066
mortgage
Construction 86,345 88,759 77,487 40,798 34,158
Total commercial 1,976,918 1,922,174 1,874,184 1,270,993 1,231,562
real estate
Commercial loans
and leases:
Commercial 346,744 319,867 309,338 150,895 156,402
Equipment 426,597 387,093 367,206 246,118 232,483
financing
Condominium 43,732 43,596 45,872 46,953 43,862
association
Total commercial 817,073 750,556 722,416 443,966 432,747
loans and leases
Indirect 574,279 581,063 578,622 573,350 571,705
automobile
Consumer loans:
Residential 507,856 493,074 490,812 350,213 346,983
mortgage
Home equity 263,194 260,623 262,591 76,527 73,831
Other consumer 6,995 5,639 6,893 5,772 5,248
Total consumer 778,045 759,336 760,296 432,512 426,062
loans
Total loans and 4,146,315 4,013,129 3,935,518 2,720,821 2,662,076
leases
Allowance for loan (38,913 ) (37,431 ) (34,428 ) (31,703 ) (31,128 )
and lease losses
Net loans and 4,107,402 3,975,698 3,901,090 2,689,118 2,630,948
leases
Premises and 66,814 56,248 48,908 38,495 35,859
equipment, net
Building 6,046 6,046 6,046 - -
held-for-sale
Deferred tax asset 27,354 25,656 24,647 12,681 11,840
Goodwill, net 137,890 137,890 138,914 45,799 46,203
Identified
intangible assets, 23,307 24,578 25,849 5,214 5,591
net of accumulated
amortization
Other real estate
owned and 2,386 2,765 2,647 1,266 2,949
repossessed
assets, net
Monies in escrow –
Bancorp Rhode - - - 112,983 -
Island, Inc.
acquisition
Other assets 77,990 80,088 80,205 30,447 25,434
Total assets $ 5,061,444 $ 4,972,381 $ 4,877,124 $ 3,299,013 $ 3,157,498
LIABILITIES AND
EQUITY
Deposits:
Demand checking $ 590,189 $ 546,036 $ 529,945 $ 225,284 $ 214,219
accounts
NOW accounts 183,478 185,234 181,299 110,220 116,206
Savings accounts 520,614 503,507 511,736 164,744 165,356
Money market 1,231,206 1,236,967 1,174,805 946,411 875,877
accounts
Certificate of 1,042,529 1,049,462 1,061,548 805,672 807,947
deposit accounts
Total deposits 3,568,016 3,521,206 3,459,333 2,252,331 2,179,605
Borrowed funds:
Advances from the 771,110 733,394 698,671 498,570 437,974
FHLBB
Other borrowed 57,146 60,707 59,865 8,349 6,947
funds
Total borrowed 828,256 794,101 758,536 506,919 444,921
funds
Mortgagors’ escrow 7,066 6,942 7,156 6,513 6,943
accounts
Accrued expenses
and other 47,889 47,328 50,883 26,248 21,042
liabilities
Total liabilities 4,451,227 4,369,577 4,275,908 2,792,011 2,652,511
Equity:
Brookline Bancorp,
Inc. stockholders’
equity:
Preferred stock,
$0.01 par value;
50,000,000 shares
authorized; none - - - - -
issued
Common stock,
$0.01 par value;
200,000,000 shares
authorized;
75,749,819 shares,
75,414,713 shares,
75,585,504 shares,
64,597,180 shares
and 64,580,180 754 754 754 644 644
shares issued,
respectively
Additional paid-in 618,176 618,184 618,031 525,171 525,012
capital
Retained earnings,
partially 47,451 42,006 40,398 39,993 37,926
restricted
Accumulated other
comprehensive 3,569 1,969 2,457 1,963 2,540
income
Treasury stock, at
cost; 5,373,733 (62,107 ) (62,107 ) (62,107 ) (62,107 ) (62,107 )
shares
Unallocated common
stock held by
ESOP; 344,991
shares,
356,064 shares,
367,137 shares,
378,215 shares
and 401,316
shares, (1,881 ) (1,941 ) (2,002 ) (2,062 ) (2,125 )
respectively
Total Brookline
Bancorp, Inc. 605,962 598,865 597,531 503,602 501,890
stockholders’
equity
Noncontrolling
interest in 4,255 3,939 3,685 3,400 3,097
subsidiary
Total equity 610,217 602,804 601,216 507,002 504,987
Total liabilities $ 5,061,444 $ 4,972,381 $ 4,877,124 $ 3,299,013 $ 3,157,498
and equity
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
Three Months Ended Sept. 30, Nine Months Ended Sept. 30,
2012 2011 2012 2011
(In Thousands Except Share Data)
Interest and
dividend
income:
Loans and $ 53,271 $ 34,028 $ 153,049 $ 99,438
leases
Debt 1,949 1,487 6,719 4,998
securities
Short-term 71 27 166 77
investments
Marketable and
restricted 103 48 291 141
equity
securities
Total interest
and dividend 55,394 35,590 160,225 104,654
income
Interest
expense:
Deposits 5,375 4,971 16,355 15,003
Borrowed funds
and 3,608 2,671 11,065 7,965
subordinated
debt
Total interest 8,983 7,642 27,420 22,968
expense
Net interest 46,411 27,948 132,805 81,686
income
Provision for 2,862 891 12,787 2,789
credit losses
Net interest
income after 43,549 27,057 120,018 78,897
provision for
credit losses
Non-interest
income:
Fees, charges
and other 3,858 1,428 11,759 3,992
income
Loss from
investments in
affordable (73 ) (500 ) (455 ) (500 )
housing
projects
Gain on sales
of securities, - - 797 80
net
Total
non-interest 3,785 928 12,101 3,572
income
Non-interest
expense:
Compensation
and employee 14,664 8,091 43,125 22,295
benefits
Occupancy 2,673 1,637 7,852 4,510
Equipment and
data 4,072 2,362 11,288 6,727
processing
Professional 1,932 1,406 10,939 4,055
services
FDIC insurance 973 478 3,123 1,236
Advertising 689 482 2,166 1,392
and marketing
Amortization
of identified 1,271 443 3,886 1,193
intangible
assets
Other 4,162 2,110 9,128 4,786
Total
non-interest 30,436 17,009 91,507 46,194
expense
Income before 16,898 10,976 40,612 36,275
income taxes
Provision for 5,176 4,394 14,473 14,816
income taxes
Net income 11,722 6,582 26,139 21,459
Less net
income
attributable
to
noncontrolling
interest in 321 307 860 916
subsidiary
Net income
attributable $ 11,401 $ 6,275 $ 25,279 $ 20,543
to Brookline
Bancorp, Inc.
Earnings per
common share:
Basic $ 0.16 $ 0.11 $ 0.36 $ 0.35
Diluted 0.16 0.11 0.36 0.35
Weighted
average common
shares
outstanding
during the
period:
Basic 69,716,283 58,640,775 69,682,741 58,627,311
Diluted 69,754,473 58,640,973 69,718,072 58,630,124
Dividends
declared per $ 0.085 $ 0.085 $ 0.255 $ 0.255
common share
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Asset Quality Analysis (Unaudited)
At or for the Three Months Ended
Sep 30, Jun 30, Mar 31, Dec 31, Sep 30,
2012 2012 2012 2011 2011
(Dollars in Thousands)
NONPERFORMING
ASSETS:
Nonaccrual
loans and
leases:
Commercial
real estate $ 2,078 $ 2,120 $ - $ - $ -
mortgage
Multi-family 2,758 3,129 2,634 1,380 1,373
mortgage
Construction - - - - -
Total
commercial 4,836 5,249 2,634 1,380 1,373
real estate
loans
Commercial 5,432 6,896 2,146 - -
Equipment 3,040 2,375 1,226 1,925 1,892
financing
Condominium 9 11 13 15 17
association
Total
commercial 8,481 9,282 3,385 1,940 1,909
loans and
leases
Indirect
automobile 80 91 27 111 59
loans
Residential 2,298 3,088 2,999 1,327 1,330
mortgage
Home equity 988 784 299 98 98
Other 49 5 10 10 11
consumer
Total
consumer 3,335 3,877 3,308 1,435 1,439
loans
Acquired from
First Ipswich 4,557 2,567 2,647 2,664 2,757
Bank
Total
nonaccrual 21,289 21,066 12,001 7,530 7,537
loans and
leases
Other real 1,690 2,082 2,207 845 2,262
estate owned
Other
repossessed 696 683 440 421 687
assets
Total
nonperforming $ 23,675 $ 23,831 $ 14,648 $ 8,796 $ 10,486
assets
Restructured
loans and
leases not $ 6,588 $ 6,443 $ 6,692 $ 5,205 $ 3,456
included in
nonperforming
assets
Nonperforming
loans and
leases as a 0.51 % 0.52 % 0.30 % 0.28 % 0.28 %
percentage of
total loans
and leases
Nonperforming
assets as a 0.47 % 0.48 % 0.30 % 0.27 % 0.33 %
percentage of
total assets
PROVISION AND
ALLOWANCE FOR
LOAN AND
LEASE LOSSES:
Allowance for
loan and
lease losses $ 37,431 $ 34,428 $ 31,703 $ 31,128 $ 30,847
at beginning
of period
Charge-offs (1,807 ) (3,970 ) (788 ) (533 ) (792 )
Recoveries 268 295 266 266 182
Net (1,539 ) (3,675 ) (522 ) (267 ) (610 )
charge-offs
Provision for
loan and 3,021 6,678 3,247 842 891
lease losses
Allowance for
loan and
lease losses $ 38,913 $ 37,431 $ 34,428 $ 31,703 $ 31,128
at end of
period
Allowance for
loan and
lease losses
as a 0.94 % 0.93 % 0.87 % 1.17 % 1.17 %
percentage of
total loans
and leases
NET
CHARGE-OFFS:
Commercial
real estate $ (38 ) $ (40 ) $ (40 ) $ - $ 30
loans
Commercial
loans and 1,179 3,292 263 (18 ) 132
leases
Indirect
automobile 301 225 292 278 448
loans
Consumer 97 198 7 7 -
loans
Total net $ 1,539 $ 3,675 $ 522 $ 267 $ 610
charge-offs
Net loan and
lease
charge-offs
as a
percentage of
average loans
and leases 0.15 % 0.37 % 0.05 % 0.04 % 0.09 %
(annualized)
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Average Yields / Costs (Unaudited)
Three Months Ended
September 30, 2012 June 30, 2012 September 30, 2011
Average Average Average
Average Interest Yield/ Average Interest Yield/ Average Interest
Balance (1) Cost Balance (1) Cost Balance (1) Yield/
Cost
(Dollars in Thousands)
Assets:
Interest-earning
assets:
Short-term $ 103,614 $ 71 0.27 % $ 71,675 $ 68 0.38 % $ 88,459 $ 27 0.12 %
investments
Investment
securities 418,513 1,967 1.88 % 430,206 1,548 1.44 % 262,085 1,494 2.28 %
available-for-sale
(2)
Restricted equity 56,047 98 0.70 % 54,583 110 0.81 % 40,137 56 0.56 %
securities (2)
Commercial real 1,944,222 23,648 4.89 % 1,915,314 24,391 4.95 % 1,192,771 15,570 5.24 %
estate loans (3)
Commercial loans (3) 378,822 6,869 7.23 % 337,330 3,687 5.60 % 191,256 2,330 4.85 %
Equipment financing 406,423 7,816 7.69 % 367,550 7,670 8.08 % 223,089 4,578 8.21 %
(3)
Indirect automobile 577,119 5,852 4.03 % 580,678 6,033 4.18 % 581,778 6,996 4.77 %
loans (3)
Residential mortgage 506,701 5,686 4.49 % 489,688 5,445 4.45 % 346,564 3,815 4.40 %
loans (3)
Other consumer loans 269,915 3,544 5.22 % 266,572 3,003 4.53 % 77,869 793 4.05 %
(3)
Total
interest-earning 4,661,376 55,551 4.77 % 4,513,596 51,955 4.62 % 3,004,008 35,659 4.75 %
assets
Allowance for loan (40,510 ) (35,962 ) (31,152 )
and lease losses
Non-interest-earning 424,892 427,299 149,467
assets
Total assets $ 5,045,758 $ 4,904,933 $ 3,122,323
Liabilities and
Stockholders'
Equity:
Interest-bearing
liabilities:
Deposits:
NOW accounts $ 181,891 $ 51 0.11 % $ 189,118 $ 57 0.12 % $ 135,303 $ 59 0.17 %
Savings accounts 517,068 410 0.32 % 505,601 443 0.35 % 165,697 250 0.60 %
Money market 1,239,230 2,246 0.72 % 1,204,754 2,260 0.75 % 858,451 1,971 0.91 %
accounts
Certificates of 1,049,390 2,668 1.01 % 1,056,021 2,703 1.03 % 813,246 2,691 1.31 %
deposit
Total
interest-bearing 2,987,579 5,375 0.72 % 2,955,494 5,463 0.74 % 1,972,697 4,971 1.00 %
deposits (4)
Advances from the 757,017 3,408 1.79 % 694,746 3,424 1.98 % 425,177 2,661 2.48 %
FHLBB
Other borrowed funds 57,753 200 1.38 % 60,550 193 1.28 % 5,718 11 0.74 %
Total
interest-bearing 3,802,349 8,983 0.94 % 3,710,790 9,080 0.98 % 2,403,592 7,643 1.26 %
liabilities
Non-interest-bearing
demand
checking accounts 572,305 542,100 188,501
(4)
Other liabilities 59,429 50,327 25,164
Total liabilities 4,434,083 4,303,217 2,617,257
Brookline Bancorp,
Inc. stockholders’ 605,988 597,908 502,252
equity
Noncontrolling
interest in 5,687 3,808 2,814
subsidiary
Total liabilities $ 5,045,758 $ 4,904,933 $ 3,122,323
and equity
Net interest income
(tax-equivalent
basis) /
Interest rate spread 46,568 3.83 % 42,875 3.63 % 28,016 3.48 %
(5)
Less adjustment of 157 116 70
tax-exempt income
Net interest income $ 46,411 $ 42,759 $ 27,946
Net interest margin 4.00 % 3.81 % 3.74 %
(6)
(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. Equity securities include marketable equity securities and
restricted equity 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) Including non-interest-bearing checking accounts, the average interest
rate on total deposits was 0.60%, 0.63% and 0.91% in the three months ended
September 30, 2012, June 30, 2012, and September 30, 2011, respectively.
(5) Interest rate spread represents the difference between the yield on
interest-earning assets and the cost of interest-bearing liabilities.
(6) Net interest margin represents net interest income (tax-equivalent basis)
divided by average interest-earning assets.
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Average Yields / Costs (Unaudited)
Nine Months Ended
September 30, 2012 September 30, 2011
Average Interest Average Average Interest Average
Balance (1) Yield/Cost Balance (1) Yield/Cost
(Dollars in Thousands)
Assets:
Interest-earning
assets:
Short-term $ 98,781 $ 166 0.23 % $ 72,702 $ 77 0.14 %
investments
Investment
securities 447,344 6,753 2.01 % 294,017 5,020 2.28 %
available-for-sale
(2)
Restricted equity 54,893 317 0.77 % 39,361 161 0.54 %
securities (2)
Commercial real 1,889,996 70,723 5.01 % 1,136,722 44,922 5.29 %
estate loans (3)
Commercial loans (3) 360,453 16,170 5.99 % 174,887 6,308 4.82 %
Equipment financing 384,453 22,000 7.63 % 215,786 13,366 8.26 %
(3)
Indirect automobile 577,857 18,132 4.19 % 576,488 21,591 5.01 %
loans (3)
Residential mortgage 498,929 16,675 4.46 % 332,467 11,205 4.49 %
loans (3)
Other consumer loans 269,473 9,587 4.75 % 74,886 2,222 3.97 %
(3)
Total
interest-earning 4,582,179 160,523 4.68 % 2,917,316 104,872 4.80 %
assets
Allowance for loan (34,914 ) (30,340 )
and lease losses
Non-interest earning 405,524 133,079
assets
Total assets $ 4,952,789 $ 3,020,055
Liabilities and
Stockholders'
Equity:
Interest-bearing
liabilities:
Deposits:
NOW accounts $ 182,441 $ 162 0.12 % $ 132,056 $ 166 0.17 %
Savings accounts 517,168 1,351 0.35 % 154,869 734 0.63 %
Money market 1,188,551 6,658 0.75 % 801,484 5,667 0.95 %
accounts
Certificates of 1,064,431 8,184 1.03 % 815,934 8,436 1.38 %
deposit
Total
interest-bearing 2,952,591 16,355 0.74 % 1,904,343 15,003 1.05 %
deposits (4)
Advances from the 723,934 10,502 1.94 % 412,260 7,854 2.55 %
FHLBB
Other borrowed funds 59,344 563 1.27 % 8,199 111 1.82 %
Total
interest-bearing 3,735,869 27,420 0.98 % 2,324,802 22,968 1.32 %
liabilities
Non-interest-bearing
demand
checking accounts 545,109 166,829
(4)
Other liabilities 67,793 26,136
Total liabilities 4,348,771 2,517,767
Brookline Bancorp,
Inc. stockholders’ 598,292 499,620
equity
Noncontrolling
interest in 5,726 2,668
subsidiary
Total liabilities $ 4,952,789 $ 3,020,055
and equity
Net interest income
(tax equivalent
basis) /
Interest rate spread 133,103 3.70 % 81,904 3.48 %
(5)
Less adjustment of 298 218
tax-exempt income
Net interest income $ 132,805 $ 81,686
Net interest margin 3.88 % 3.75 %
(6)
(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. Equity securities include marketable equity securities and
restricted equity 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) Including non-interest-bearing checking accounts, the average interest
rate on total deposits was 0.62% and 0.97% in the nine months ended September
30, 2012 and 2011, respectively.
(5) Interest rate spread represents the difference between the yield on
interest-earning assets and the cost of interest-bearing liabilities.
(6) 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 September 30, Nine Months Ended September 30,
2012 2011 2012 2011
Reconciliation
Table -
Non-GAAP (Dollars in Thousands Except Share Data)
Financial
Information
Net income
attributable $ 11,401 $ 6,275 $ 25,279 $ 20,543
to Brookline
Bancorp, Inc.
Add:
Merger-related
expenses - 487 3,972 1,411
(after-tax)
Net earnings
from $ 11,401 $ 6,762 $ 29,251 $ 21,954
operations
Earnings per
common share:
Basic $ 0.16 $ 0.12 $ 0.42 $ 0.37
Diluted 0.16 0.12 0.42 0.37
Weighted
average common
shares
outstanding
during the
period:
Basic 69,716,283 58,640,775 69,682,741 58,627,311
Diluted 69,754,473 58,640,973 69,718,072 58,630,124
Sep 30, 2012 Jun 30, 2012 Mar 31, 2012 Dec 31, 2012 Sep 30, 2011
(Dollars in Thousands)
Brookline
Bancorp, Inc. $ 605,962 $ 598,865 $ 597,531 503,602 $ 501,890
stockholders’
equity
Less:
Goodwill 137,890 137,890 138,914 45,799 46,203
Identified
intangible 23,307 24,578 25,849 5,214 5,591
assets
Tangible
stockholders' $ 444,765 $ 436,397 $ 432,768 $ 452,589 $ 450,096
equity
Total assets 5,061,444 4,972,381 4,877,124 3,299,013 3,157,498
Less:
Goodwill 137,890 137,890 138,914 45,799 46,203
Identified
intangible 23,307 24,578 25,849 5,214 5,591
assets
Tangible $ 4,900,247 $ 4,809,913 $ 4,712,361 $ 3,248,000 $ 3,105,704
assets
Tangible
stockholders’
equity to 9.08 % 9.07 % 9.18 % 13.93 % 14.49 %
tangible
assets
Sep 30, 2012 Jun 30, 2012 Mar 31, 2012 Dec 31, 2011 Sep 30, 2011
(Dollars in Thousands Except Per Share Data)
Tangible
stockholders' $ 444,765 $ 436,397 $ 432,768 $ 452,589 $ 450,096
equity
Common shares 75,749,819 75,414,713 75,585,504 64,597,180 64,580,180
issued
Less:
Treasury 5,373,733 5,373,733 5,373,733 5,373,733 5,373,733
shares
Number of
common shares 70,376,086 70,040,980 70,211,771 59,223,447 59,206,447
outstanding
Tangible book
value per $ 6.32 $ 6.23 $ 6.16 $ 7.64 $ 7.60
common share
Contact:
Brookline Bancorp, Inc.
Julie A. Gerschick, 617-278-6406
Chief Financial Officer and Treasurer
jgerschick@brkl.com
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