Blue Hills Bancorp, Inc. (the “Company” or "Blue Hills Bancorp")
(NASDAQ:BHBK), the parent of Blue Hills Bank (the "Bank"), today
announced net income of $3.9 million, or $0.16 per diluted share,
for the second quarter of 2017 compared to net income of $7.5
million, or $0.31 per diluted share, for the first quarter of 2017
and net income of $1.4 million, or $0.05 per diluted share, for the
second quarter of 2016.
The second quarter of 2017 included a pre-tax gain of $928,000
($595,000 after-tax, or $0.02 per diluted share) from the sale of
the Company's remaining available-for-sale debt securities
portfolio. Excluding this item, net income was $3.3 million, or
$0.14 per diluted share, for the second quarter of 2017. As
first disclosed in a Form 10-Q as filed with the Securities and
Exchange Commission on May 5, 2017, the Company’s Management
Investment Committee approved a change in strategy to liquidate its
externally managed available-for-sale debt securities portfolio
(which largely consisted of corporate debt securities) during the
second quarter as continued rising interest rates would likely
negatively impact the returns of this portfolio over time. This
portfolio had a carrying value of $164.6 million at the end of the
first quarter. The Company intends to ultimately invest
approximately $100.0 million of the proceeds from the sale of these
bonds in its internally managed fixed income securities portfolio,
which is accounted for as held to maturity, and most of this
liquidation and reinvestment had been accomplished by the end of
the second quarter. The remaining proceeds were used to fund
incremental loan growth.
The first quarter of 2017 included a pre-tax gain of $5.9
million ($3.8 million after-tax, or $0.16 per diluted share) from
the Company's investment in Northeast Retirement Services, Inc.,
which was acquired by Community Bank System, Inc., a pre-tax loss
of $1.1 million ($676,000 after-tax, or $0.03 per diluted share)
from the sale of the Company's investments in mutual funds, and the
reversal of a valuation allowance for state taxes of $1.7 million,
or $0.07 per diluted share. Excluding these three items, net
income was $2.7 million, or $0.11 per diluted share, for first
quarter of 2017.
For the six months ended June 30, 2017, net income was $5.9
million, or $0.25 per diluted share, excluding the nonrecurring
items discussed above, compared to net income of $3.0 million, or
$0.12 per diluted share, for the six months ended June 30,
2016. On a GAAP basis, the Company had net income of $11.4
million, or $0.47 per diluted share for the six months ended June
30, 2017 (see page 15 for a reconciliation of GAAP to non-GAAP
measures).
Commenting on the Company's results, William Parent, President
and Chief Executive Officer of Blue Hills Bancorp, said, "The first
half of 2017 was an important period in the continued
transformation of our bank. We took some key steps to
restructure our securities portfolio by selling our portfolio of
mutual fund investments in the first quarter and restructuring of
the remaining portfolio of available-for-sale debt securities in
the second quarter. These actions will reduce volatility in
our quarterly financial statements and, together with the expansion
of our loan portfolio over the past several years, have reduced the
level of investment securities to just 12% of total assets at June
30, 2017. As recently as the end of 2013, investment
securities comprised approximately one-third of the Company's total
assets.
Parent continued, "All of our businesses have performed well in
2017 as earnings per share from core operations more than doubled
in the first half of 2017 from the comparable period in 2016.
Mortgage originations and revenues continued to climb, reflecting
the successful and continued expansion of that business, our
commercial lending teams have generated strong loan growth, and our
retail banking team has done a great job bringing in
deposits. The three branches we have opened since the fourth
quarter of 2014 have a combined deposit total of $229 million at
June 30, 2017 while our division in Nantucket, which was acquired
in early 2014, ended the second quarter with $339 million in
deposits. Revenues, excluding securities gains and nonrecurring
items, grew 31% in the second quarter compared to the year ago
period and, importantly, much of the investment spending that gave
rise to the revenue improvement is behind us. The significant
growth in revenue from the second quarter of last year was
accompanied by a relatively modest 3% increase in noninterest
expense and this has provided us with significant positive
operating leverage while reducing our efficiency ratio to 67% in
the second quarter from 80% a year ago. We just crossed the
three year anniversary of our mutual to stock conversion and are
proud of the progress the Company has made. We look forward
to the future with enthusiasm and to creating value for our
stakeholders."
BALANCE SHEETCompared to March 31, 2017, total
assets grew $17 million, or 1%, to $2.5 billion at June 30,
2017. The increase was driven by loan growth as total loans
increased $79 million, or 4%, to $2.1 billion at June 30,
2017. By category, the increase was mainly driven by
commercial real estate loans, which were up $55 million, or 8%, and
commercial business loans, which were up $17 million, or 8%.
Residential mortgage loans were little changed as growth from new
originations was offset by loan sales. In addition to the
increase in loans, short-term investments were up $14 million, or
73%. These increases were partially offset by an $81 million,
or 22%, decline in the combination of securities available-for-sale
and held to maturity, reflecting the aforementioned sale of the
remaining available-for-sale debt securities portfolio and the
partial reinvestment of those proceeds into securities classified
as held to maturity. At June 30, 2017, 96% of all securities
(and 100% of all debt securities) are classified as held to
maturity.
Compared to June 30, 2016, total assets increased $273 million,
or 12%. Loans also drove the growth in total assets in this
comparison, increasing $381 million, or 23%. By category, the
increase from June 30, 2016 was due to residential mortgage loans,
which were up $219 million, or 32%, commercial real estate loans,
which were up $147 million, or 24%, and commercial business loans,
which were up $49 million, or 28%. Residential mortgage loan
originations were $139 million in the second quarter of 2017
compared to $126 million in the second quarter of 2016 as the
expanded origination team continued to grow the business and gain
market share. In the second quarter of 2017, commercial loans (real
estate and non-real estate combined) totaling $137 million were
added to the balance sheet compared to $109 million in the second
quarter of 2016. The growth in loans was partially offset by
a $107 million, or 27%, decline in the combination of securities
available-for-sale and held to maturity, due to the previously
discussed sales of the mutual fund investment portfolio and the
remaining available-for-sale debt securities portfolio.
Compared to March 31, 2017, deposits grew $109 million, or 6%,
to $2.0 billion at June 30, 2017 mainly reflecting growth in
municipal deposits and brokered certificates of deposit.
Deposits at the Company's newest branch, which was opened in the
fourth quarter of 2016 and is located in the Seaport District of
Boston, grew $12 million during the second quarter to $63 million
at June 30, 2017. The Company's branch in Westwood, which was
opened in the fourth quarter of 2015, surpassed the $100 million
mark in deposits during the second quarter. Borrowings
declined to $130 million at June 30, 2017 from $223 million at
March 31, 2017 due to the sale of the remaining available-for-sale
debt securities portfolio and a shift in wholesale funding to a
higher level of brokered certificates of deposit.
Compared to June 30, 2016, deposits grew $364 million, or 23%,
and included growth in all customer segments (consumer, small
business, commercial and municipal). By category, the most
significant increases were seen in money market deposits, which
were up $168 million, brokered certificates of deposit, which were
up $140 million, and NOW and demand deposits, which were up $62
million. A $130 million decline in short-term borrowings was
partially offset by a $45 million increase in long-term
borrowings. All borrowings at June 30, 2017 are classified as
long-term.
Stockholders’ equity was $397 million at June 30, 2017 and March
31, 2017 compared to $392 million at June 30, 2016. The increase
from a year ago was mainly due to net income over the past four
quarters, which added $17.0 million to stockholders' equity,
partially offset by share repurchases that took place in the second
half of 2016 and dividends, including a special dividend of $0.20
per common share in the second quarter of 2017. There were no
share repurchases in the first half of 2017.
NET INTEREST AND DIVIDEND INCOMENet interest
and dividend income was $16.4 million in the second quarter of
2017, up $527,000, or 3%, from $15.9 million in the first quarter
of 2017 and up $3.1 million, or 23%, from $13.3 million in the
second quarter of 2016. Net interest margin was 2.75% in the
second quarter of 2017, up from 2.70% in the first quarter of 2017
and from 2.56% in the second quarter of 2016.
Net interest and dividend income on a fully taxable equivalent
basis (referred to herein as "Reported net interest and dividend
income (FTE)", a Non-GAAP measure) was $16.5 million in the second
quarter of 2017, up $521,000, or 3%, from $15.9 million in the
first quarter of 2017, and up $3.1 million, or 23%, from $13.4
million in the second quarter of 2016. Net interest margin on
a fully taxable equivalent basis (referred to herein as "Reported
net interest margin (FTE)", a Non-GAAP measure) improved to 2.76%
in the second quarter of 2017 from 2.71% in the first quarter of
2017 and 2.58% in the second quarter of 2016.
The table shown below provides a reconciliation of reported to
adjusted net interest and dividend income and margin for the last
five quarters (referred to herein as "Adjusted net interest and
dividend income (FTE)" and "Adjusted net interest margin (FTE)",
which are Non-GAAP measures). Commentary which follows the
table will focus on changes in Adjusted net interest and dividend
income and Adjusted net interest margin.
| (Unaudited, dollars in
thousands) |
June 30, 2017 |
March 31, 2017 |
December 31, 2016 |
September 30, 2016 |
June 30, 2016 |
| Net Interest
and Dividend Income |
|
|
|
|
|
| Reported net interest
and dividend income |
$ |
16,408 |
|
$ |
15,881 |
|
$ |
15,950 |
|
$ |
14,495 |
|
$ |
13,316 |
|
| FTE adjustment |
60 |
|
66 |
|
78 |
|
65 |
|
77 |
|
| Reported net interest
and dividend income (FTE) |
16,468 |
|
15,947 |
|
16,028 |
|
14,560 |
|
13,393 |
|
| Mutual fund dividends
(2) |
— |
|
— |
|
(844 |
) |
(96 |
) |
— |
|
| Purchase accounting
accretion (2) |
(181 |
) |
(107 |
) |
(137 |
) |
(115 |
) |
(133 |
) |
| Accelerated bond
amortization/(accretion) on note redemptions |
— |
|
— |
|
— |
|
(193 |
) |
203 |
|
| Adjusted net interest
and dividend income (FTE) (1) |
$ |
16,287 |
|
$ |
15,840 |
|
$ |
15,047 |
|
$ |
14,156 |
|
$ |
13,463 |
|
| |
|
|
|
|
|
| Net Interest
Margin |
|
|
|
|
|
| Reported net interest
margin |
2.75 |
% |
2.70 |
% |
2.81 |
% |
2.67 |
% |
2.56 |
% |
| FTE adjustment |
0.01 |
|
0.01 |
|
0.01 |
|
0.01 |
|
0.02 |
|
| Reported net interest
margin (FTE) |
2.76 |
|
2.71 |
|
2.82 |
|
2.68 |
|
2.58 |
|
| Mutual fund dividends
(2) |
— |
|
0.03 |
|
(0.10 |
) |
0.03 |
|
0.05 |
|
| Purchase accounting
accretion (2) |
(0.03 |
) |
(0.02 |
) |
(0.03 |
) |
(0.02 |
) |
(0.03 |
) |
| Accelerated bond
amortization/(accretion) on note redemptions |
— |
|
— |
|
— |
|
(0.04 |
) |
0.04 |
|
| Adjusted net interest
margin (FTE) (1) |
2.73 |
% |
2.72 |
% |
2.69 |
% |
2.65 |
% |
2.64 |
% |
| |
|
|
|
|
|
| (1)
Management believes that it is a standard practice in the banking
industry to present net interest margin and net interest income on
a fully taxable equivalent basis (FTE), using a federal statutory
tax rate of 35% (a statutory tax rate of 34% was used prior to the
fourth quarter of 2016). Therefore, management believes, these
measures provide useful information to investors by allowing them
to make peer comparisons. |
| (2) Note:
In calculating the net interest margin impact of mutual fund
dividends and purchase accounting accretion, average earning assets
were adjusted to remove the average balances associated with each
item. In quarters where mutual fund dividend income is low, the
removal of the dividend and its related average balance has a
positive impact on the adjusted net interest margin.
Management believes this adjusted net interest margin is useful
because of the volatility or non-recurring nature of certain items
from quarter to quarter. The Company sold its investments in mutual
funds during the first quarter of 2017. |
|
|
Adjusted net interest and dividend income on a fully tax
equivalent basis increased $447,000, or 3%, to $16.3 million in the
second quarter of 2017 from $15.8 million in the first quarter of
2017 and was up $2.8 million, or 21%, from $13.5 million in the
second quarter of 2016. Adjusted net interest margin improved
to 2.73% in the second quarter of 2017 from 2.72% in the first
quarter of 2017 and 2.64% in the second quarter of 2016.
Adjusted net interest income and net interest margin benefited in
both comparisons from higher floating rate loan yields related to
the interest rate increases announced by the Federal Reserve Bank
in June 2017, March 2017, and December 2016. The Company
maintains an asset sensitive interest rate risk position. In
addition, adjusted net interest income was helped by loan growth as
average loans increased $88 million, or 4%, from the first quarter
of this year and $411 million, or 25%, from the second quarter of
last year. In both comparisons, average loan growth was
driven by higher levels of commercial real estate loans,
residential mortgages and commercial business loans.
Partially offsetting the improvement from loan growth was a decline
in average securities which were down $88 million, or 22%, from the
first quarter and $110 million, or 26%, from last year's second
quarter. These declines reflected the sales of the mutual
fund investment portfolio and the remaining portfolio of
available-for-sale debt securities.
NONINTEREST INCOMENoninterest income was $4.5
million in the second quarter of 2017, down from $6.8 million in
the first quarter of 2017. The second quarter includes a
$928,000 gain on the sale of the Company's remaining
available-for-sale debt securities portfolio while the first
quarter included a gain of $5.9 million from the Company's
investment in Northeast Retirement Services, Inc., which was
acquired by Community Bank System, Inc., and a $1.1 million loss
from the sale of the Company's investments in mutual funds.
Excluding these items, noninterest income was $3.6 million in the
second quarter of 2017, up $1.7 million, or 86%, from the first
quarter of 2017. The improvement is due to a $1.2 million
increase in loan level derivative income related to the portfolio
of commercial loan customer interest rate swap contracts. The
amount of revenue in the loan level derivative income category can
be volatile since it is a function of the amount of commercial
loans that customers opt to convert from floating to fixed rate via
interest rate swaps in any given quarter. Also contributing
to the increase was a $479,000 improvement in mortgage banking
income reflecting a higher level of loan sale gains.
Compared to the second quarter of 2016, noninterest income
increased $1.7 million, or 60%. As noted previously, the second
quarter of 2017 includes a $928,000 gain on the sale of the
Company's remaining available-for-sale debt securities portfolio,
however, the second quarter of 2016 also includes $664,000 of
securities gains. Excluding securities gains, the improvement
was driven by the same factors that caused the increase in the
linked quarter comparison. Loan level derivative income was
up $1.0 million and mortgage banking income grew $688,000.
NONINTEREST EXPENSENoninterest expense was
$13.4 million in the second and first quarters of 2017 compared to
$12.9 million in the second quarter of 2016. The $431,000, or
3%, increase from the second quarter of last year is mainly due to
franchise growth and this can mainly be seen in the salaries and
benefits as well as the occupancy and equipment expense
categories. The new Seaport branch, as well as the opening of
new loan and mortgage production offices, contributed to the growth
in both salaries and benefits expense and occupancy and equipment
expense.
ASSET QUALITYThe provision for loan losses,
which in all quarters reflects management’s assessment of risks
inherent in the loan portfolio, was $1.1 million in the second
quarter of 2017 compared to $57,000 in the first quarter of 2017
and $1.1 million in the second quarter of 2016. Loan growth
and loan mix impact the level of provision needed each quarter and
the increase in the provision from the first quarter reflected both
factors. Loan growth was higher in the second quarter than in
the first quarter and there was a change in loan mix during the
second quarter with commercial real estate loans becoming a higher
percentage of the total loan portfolio and residential mortgages
becoming a lower percentage.
The allowance for loan losses as a percentage of total loans was
0.97% at June 30, 2017 compared to 0.95% at March 31, 2017 and
1.07% June 30, 2016. The decline in the allowance for loan losses
as a percentage of total loans from a year ago was impacted by the
general improvement in historical loss rates from national FDIC
data, as well as the planned migration of loss rates to those more
reflective of the Company's own loan loss experience. The
Company had net loan chargeoffs of $76,000 in the second quarter of
2017 compared to net loan recoveries of $68,000 in the first
quarter of 2017 and net loan chargeoffs of $19,000 in the second
quarter of 2016.
Nonperforming assets were $12.8 million at June 30, 2017
compared to $13.1 million at March 31, 2017 and $15.0 million at
June 30, 2016. The decline from a year ago was mainly due to
the chargeoff of one commercial credit in the third quarter of last
year. Nonperforming assets as a percentage of total assets
was 0.51% at June 30, 2017 compared to 0.53% at March 31, 2017 and
0.67% at June 30, 2016.
ABOUT BLUE HILLS BANCORPBlue Hills Bancorp,
Inc., with corporate headquarters in Norwood, MA, had assets of
$2.5 billion at June 30, 2017 and operates 11 branch offices in
Boston, Dedham, Hyde Park, Milton, Nantucket, Norwood, West
Roxbury, and Westwood, Massachusetts. Blue Hills Bank is a full
service, community bank with its main office in Hyde Park,
Massachusetts. The Bank's three branches in Nantucket,
Massachusetts operate under the name, Nantucket Bank, a division of
Blue Hills Bank. The Bank provides consumer, commercial and
municipal deposit and loan products in Eastern Massachusetts
through its branch network, loan production offices and eCommerce
channels. The Bank offers commercial business and commercial real
estate loans in addition to cash management services and commercial
deposit accounts. The Bank also serves consumers through a full
suite of consumer banking products including checking accounts,
mortgage loans, equity lines of credit and traditional savings and
certificate of deposit accounts. The Bank has invested
substantially in online technology including online account opening
and funding, online mortgage applications, online banking, mobile
banking, bill pay and mobile deposits. Blue Hills Bank has been
serving area residents for over 140 years. For more information
about Blue Hills Bank, visit www.bluehillsbank.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTSThis press release, as well as other written
communications made from time to time by the Company and its
subsidiaries and oral communications made from time to time by
authorized officers of the Company, may contain statements relating
to the future results of the Company (including certain projections
and business trends) that are considered "forward-looking
statements" as defined in the Private Securities Litigation Reform
Act of 1995 (the PSLRA). Such forward-looking statements may be
identified by the use of such words as "believe," "expect,"
"anticipate," "should," "planned," "estimated," "intend" and
"potential." For these statements, the Company claims the
protection of the safe harbor for forward-looking statements
contained in the PSLRA.
The Company cautions you that a number of important factors
could cause actual results to differ materially from those
currently anticipated in any forward-looking statement. Such
factors include, but are not limited to: our ability to implement
successfully our business strategy, which includes significant
asset and liability growth; changes that could adversely affect the
business in which the Company and the Bank are engaged; prevailing
economic and geopolitical conditions; changes in interest rates,
loan demand, real estate values and competition; changes in
accounting principles, policies, and guidelines; changes in any
applicable law, rule, regulation or practice with respect to tax or
legal issues; and other economic, competitive, governmental,
regulatory and technological factors affecting the Company's
operations, pricing, products and services. For additional
information on some of the risks and important factors that could
affect the Company’s future results and financial condition, see
“Risk Factors” in the Company’s Annual Report on Form 10-K as filed
with the Securities and Exchange Commission. The forward-looking
statements are made as of the date of this release, and, except as
may be required by applicable law or regulation, the Company
assumes no obligation to update the forward-looking statements or
to update the reasons why actual results could differ from those
projected in the forward-looking statements.
| Blue Hills Bancorp,
Inc.Consolidated Balance Sheets |
|
|
| (Unaudited, dollars in
thousands) |
|
|
|
% Change |
| |
June 30, 2017 |
March 31, 2017 |
June 30, 2016 |
June 30, 2017 vs. March 31,
2017 |
June 30, 2017 vs. June 30, 2016 |
|
Assets |
|
|
|
|
|
| Cash and
due from banks |
$ |
17,292 |
|
$ |
15,594 |
|
$ |
13,710 |
|
10.9 |
% |
26.1 |
% |
| Short
term investments |
33,819 |
|
19,555 |
|
29,485 |
|
72.9 |
% |
14.7 |
% |
| Total
cash and cash equivalents |
51,111 |
|
35,149 |
|
43,195 |
|
45.4 |
% |
18.3 |
% |
|
Securities available-for-sale, at fair value |
10,437 |
|
173,834 |
|
204,973 |
|
(94.0 |
)% |
(94.9 |
)% |
|
Securities held-to-maturity, at amortized cost |
283,672 |
|
201,684 |
|
196,454 |
|
40.7 |
% |
44.4 |
% |
| Federal
Home Loan Bank stock, at cost |
11,943 |
|
14,828 |
|
12,833 |
|
(19.5 |
)% |
(6.9 |
)% |
| Loans
held for sale |
6,789 |
|
1,675 |
|
6,097 |
|
305.3 |
% |
11.3 |
% |
|
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 1-4
family residential |
895,015 |
|
896,951 |
|
675,952 |
|
(0.2 |
)% |
32.4 |
% |
| Home
equity |
84,615 |
|
80,427 |
|
81,649 |
|
5.2 |
% |
3.6 |
% |
|
Commercial real estate |
756,093 |
|
701,463 |
|
608,669 |
|
7.8 |
% |
24.2 |
% |
|
Construction |
78,062 |
|
70,855 |
|
107,049 |
|
10.2 |
% |
(27.1 |
)% |
|
Total real estate loans |
1,813,785 |
|
1,749,696 |
|
1,473,319 |
|
3.7 |
% |
23.1 |
% |
|
Commercial business |
227,262 |
|
210,328 |
|
178,112 |
|
8.1 |
% |
27.6 |
% |
|
Consumer |
25,047 |
|
27,325 |
|
33,707 |
|
(8.3 |
)% |
(25.7 |
)% |
| Total
loans |
2,066,094 |
|
1,987,349 |
|
1,685,138 |
|
4.0 |
% |
22.6 |
% |
| Allowance
for loan losses |
(19,917 |
) |
(18,875 |
) |
(18,079 |
) |
5.5 |
% |
10.2 |
% |
| Loans,
net |
2,046,177 |
|
1,968,474 |
|
1,667,059 |
|
3.9 |
% |
22.7 |
% |
| Premises
and equipment, net |
22,004 |
|
21,858 |
|
20,136 |
|
0.7 |
% |
9.3 |
% |
| Accrued
interest receivable |
5,362 |
|
5,994 |
|
5,640 |
|
(10.5 |
)% |
(4.9 |
)% |
| Goodwill
and core deposit intangible |
10,091 |
|
10,313 |
|
11,125 |
|
(2.2 |
)% |
(9.3 |
)% |
| Net
deferred tax asset |
8,184 |
|
8,751 |
|
8,958 |
|
(6.5 |
)% |
(8.6 |
)% |
|
Bank-owned life insurance |
32,533 |
|
32,271 |
|
31,558 |
|
0.8 |
% |
3.1 |
% |
| Other
assets |
25,606 |
|
21,779 |
|
32,733 |
|
17.6 |
% |
(21.8 |
)% |
| Total
assets |
$ |
2,513,909 |
|
$ |
2,496,610 |
|
$ |
2,240,761 |
|
0.7 |
% |
12.2 |
% |
| Liabilities and
Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| NOW and
demand |
$ |
359,877 |
|
$ |
342,118 |
|
$ |
298,178 |
|
5.2 |
% |
20.7 |
% |
| Regular
savings |
246,484 |
|
265,116 |
|
274,866 |
|
(7.0 |
)% |
(10.3 |
)% |
| Money
market |
674,593 |
|
622,852 |
|
506,251 |
|
8.3 |
% |
33.3 |
% |
|
Certificates of deposit |
362,261 |
|
348,042 |
|
339,415 |
|
4.1 |
% |
6.7 |
% |
| Brokered
money market |
44,728 |
|
50,129 |
|
45,231 |
|
(10.8 |
)% |
(1.1 |
)% |
| Brokered
certificates of deposit |
277,320 |
|
228,465 |
|
136,965 |
|
21.4 |
% |
102.5 |
% |
|
Total deposits |
1,965,263 |
|
1,856,722 |
|
1,600,906 |
|
5.8 |
% |
22.8 |
% |
|
Short-term borrowings |
— |
|
118,000 |
|
130,000 |
|
NM |
|
NM |
|
| Long-term
debt |
130,000 |
|
105,000 |
|
85,000 |
|
23.8 |
% |
52.9 |
% |
| Other
liabilities |
21,328 |
|
19,944 |
|
32,903 |
|
6.9 |
% |
(35.2 |
)% |
| Total
liabilities |
2,116,591 |
|
2,099,666 |
|
1,848,809 |
|
0.8 |
% |
14.5 |
% |
| Common
stock |
259 |
|
259 |
|
265 |
|
— |
% |
(2.3 |
)% |
|
Additional paid-in capital |
252,504 |
|
250,976 |
|
255,781 |
|
0.6 |
% |
(1.3 |
)% |
| Unearned
compensation- ESOP |
(20,117 |
) |
(20,306 |
) |
(20,876 |
) |
(0.9 |
)% |
(3.6 |
)% |
| Retained
earnings |
166,033 |
|
168,160 |
|
157,714 |
|
(1.3 |
)% |
5.3 |
% |
|
Accumulated other comprehensive loss |
(1,361 |
) |
(2,145 |
) |
(932 |
) |
(36.6 |
)% |
46.0 |
% |
| Total
stockholders' equity |
397,318 |
|
396,944 |
|
391,952 |
|
0.1 |
% |
1.4 |
% |
| Total
liabilities and stockholders' equity |
$ |
2,513,909 |
|
$ |
2,496,610 |
|
$ |
2,240,761 |
|
0.7 |
% |
12.2 |
% |
| |
| Blue Hills Bancorp,
Inc.Consolidated Balance Sheet Trend |
|
|
| (Unaudited, dollars in
thousands) |
June 30, 2017 |
March 31, 2017 |
December 31, 2016 |
September 30, 2016 |
June 30, 2016 |
|
Assets |
|
|
|
|
|
| Cash and
due from banks |
$ |
17,292 |
|
$ |
15,594 |
|
$ |
14,752 |
|
$ |
15,490 |
|
$ |
13,710 |
|
| Short
term investments |
33,819 |
|
19,555 |
|
15,744 |
|
21,512 |
|
29,485 |
|
| Total
cash and cash equivalents |
51,111 |
|
35,149 |
|
30,496 |
|
37,002 |
|
43,195 |
|
|
Securities available-for-sale, at fair value |
10,437 |
|
173,834 |
|
204,836 |
|
210,273 |
|
204,973 |
|
|
Securities held-to-maturity, at amortized cost |
283,672 |
|
201,684 |
|
201,027 |
|
197,863 |
|
196,454 |
|
| Federal
Home Loan Bank stock, at cost |
11,943 |
|
14,828 |
|
13,352 |
|
13,505 |
|
12,833 |
|
| Loans
held for sale |
6,789 |
|
1,675 |
|
2,761 |
|
2,134 |
|
6,097 |
|
|
Loans: |
|
|
|
|
|
| 1-4
family residential |
895,015 |
|
896,951 |
|
854,478 |
|
746,366 |
|
675,952 |
|
| Home
equity |
84,615 |
|
80,427 |
|
79,132 |
|
80,604 |
|
81,649 |
|
|
Commercial real estate |
756,093 |
|
701,463 |
|
686,522 |
|
660,458 |
|
608,669 |
|
|
Construction |
78,062 |
|
70,855 |
|
75,950 |
|
71,281 |
|
107,049 |
|
|
Total real estate loans |
1,813,785 |
|
1,749,696 |
|
1,696,082 |
|
1,558,709 |
|
1,473,319 |
|
|
Commercial business |
227,262 |
|
210,328 |
|
205,832 |
|
169,076 |
|
178,112 |
|
|
Consumer |
25,047 |
|
27,325 |
|
29,707 |
|
31,435 |
|
33,707 |
|
| Total
loans |
2,066,094 |
|
1,987,349 |
|
1,931,621 |
|
1,759,220 |
|
1,685,138 |
|
| Allowance
for loan losses |
(19,917 |
) |
(18,875 |
) |
(18,750 |
) |
(17,730 |
) |
(18,079 |
) |
| Loans,
net |
2,046,177 |
|
1,968,474 |
|
1,912,871 |
|
1,741,490 |
|
1,667,059 |
|
| Premises
and equipment, net |
22,004 |
|
21,858 |
|
22,034 |
|
21,362 |
|
20,136 |
|
| Accrued
interest receivable |
5,362 |
|
5,994 |
|
6,057 |
|
5,388 |
|
5,640 |
|
| Goodwill
and core deposit intangible |
10,091 |
|
10,313 |
|
10,560 |
|
10,831 |
|
11,125 |
|
| Net
deferred tax asset |
8,184 |
|
8,751 |
|
10,146 |
|
8,780 |
|
8,958 |
|
|
Bank-owned life insurance |
32,533 |
|
32,271 |
|
32,015 |
|
31,743 |
|
31,558 |
|
| Other
assets |
25,606 |
|
21,779 |
|
23,537 |
|
33,295 |
|
32,733 |
|
| Total
assets |
$ |
2,513,909 |
|
$ |
2,496,610 |
|
$ |
2,469,692 |
|
$ |
2,313,666 |
|
$ |
2,240,761 |
|
| Liabilities and
Stockholders' Equity |
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
| NOW and
demand |
$ |
359,877 |
|
$ |
342,118 |
|
$ |
331,508 |
|
$ |
337,225 |
|
$ |
298,178 |
|
| Regular
savings |
246,484 |
|
265,116 |
|
262,984 |
|
270,067 |
|
274,866 |
|
| Money
market |
674,593 |
|
622,852 |
|
573,204 |
|
518,360 |
|
506,251 |
|
|
Certificates of deposit |
362,261 |
|
348,042 |
|
340,114 |
|
339,064 |
|
339,415 |
|
| Brokered
money market |
44,728 |
|
50,129 |
|
53,357 |
|
46,235 |
|
45,231 |
|
| Brokered
certificates of deposit |
277,320 |
|
228,465 |
|
247,520 |
|
170,506 |
|
136,965 |
|
|
Total deposits |
1,965,263 |
|
1,856,722 |
|
1,808,687 |
|
1,681,457 |
|
1,600,906 |
|
|
Short-term borrowings |
— |
|
118,000 |
|
146,000 |
|
103,700 |
|
130,000 |
|
| Long-term
debt |
130,000 |
|
105,000 |
|
105,000 |
|
105,000 |
|
85,000 |
|
| Other
liabilities |
21,328 |
|
19,944 |
|
23,098 |
|
33,820 |
|
32,903 |
|
| Total
liabilities |
2,116,591 |
|
2,099,666 |
|
2,082,785 |
|
1,923,977 |
|
1,848,809 |
|
| Common
stock |
259 |
|
259 |
|
259 |
|
261 |
|
265 |
|
|
Additional paid-in capital |
252,504 |
|
250,976 |
|
249,317 |
|
251,341 |
|
255,781 |
|
| Unearned
compensation- ESOP |
(20,117 |
) |
(20,306 |
) |
(20,496 |
) |
(20,686 |
) |
(20,876 |
) |
| Retained
earnings |
166,033 |
|
168,160 |
|
161,896 |
|
158,620 |
|
157,714 |
|
|
Accumulated other comprehensive income (loss) |
(1,361 |
) |
(2,145 |
) |
(4,069 |
) |
153 |
|
(932 |
) |
| Total
stockholders' equity |
397,318 |
|
396,944 |
|
386,907 |
|
389,689 |
|
391,952 |
|
| Total
liabilities and stockholders' equity |
$ |
2,513,909 |
|
$ |
2,496,610 |
|
$ |
2,469,692 |
|
$ |
2,313,666 |
|
$ |
2,240,761 |
|
| |
| Blue Hills Bancorp,
Inc.Consolidated Statements of Net Income -
Quarters |
|
|
| (Unaudited, dollars in
thousands, except share data) |
Quarters Ended |
% Change |
| |
June 30, 2017 |
March 31, 2017 |
June 30, 2016 |
June 30, 2017 vs. March 31,
2017 |
June 30, 2017 vs. June 30, 2016 |
| Interest
and fees on loans |
$ |
18,715 |
|
$ |
17,382 |
|
$ |
14,138 |
|
7.7 |
% |
32.4 |
% |
| Interest
on securities |
1,572 |
|
2,210 |
|
2,037 |
|
(28.9 |
)% |
(22.8 |
)% |
|
Dividends |
193 |
|
157 |
|
155 |
|
22.9 |
% |
24.5 |
% |
|
Other |
94 |
|
32 |
|
26 |
|
193.8 |
% |
261.5 |
% |
| Total
interest and dividend income |
20,574 |
|
19,781 |
|
16,356 |
|
4.0 |
% |
25.8 |
% |
| Interest
on deposits |
3,523 |
|
3,254 |
|
2,484 |
|
8.3 |
% |
41.8 |
% |
| Interest
on borrowings |
643 |
|
646 |
|
556 |
|
(0.5 |
)% |
15.6 |
% |
| Total
interest expense |
4,166 |
|
3,900 |
|
3,040 |
|
6.8 |
% |
37.0 |
% |
| Net
interest and dividend income |
16,408 |
|
15,881 |
|
13,316 |
|
3.3 |
% |
23.2 |
% |
| Provision
for loan losses |
1,118 |
|
57 |
|
1,113 |
|
1,861.4 |
% |
0.4 |
% |
| Net
interest and dividend income, after provision for loan losses |
15,290 |
|
15,824 |
|
12,203 |
|
(3.4 |
)% |
25.3 |
% |
| Deposit
account fees |
341 |
|
320 |
|
307 |
|
6.6 |
% |
11.1 |
% |
|
Interchange and ATM fees |
388 |
|
348 |
|
393 |
|
11.5 |
% |
(1.3 |
)% |
| Mortgage
banking |
1,219 |
|
740 |
|
531 |
|
64.7 |
% |
129.6 |
% |
| Loan
level derivative fee income |
1,367 |
|
164 |
|
322 |
|
733.5 |
% |
324.5 |
% |
| Realized
securities gains (losses), net |
928 |
|
(1,022 |
) |
664 |
|
190.8 |
% |
39.8 |
% |
| Gain on
exchange of investment in Northeast Retirement Services |
— |
|
5,947 |
|
— |
|
NM |
|
NM |
|
|
Bank-owned life insurance income |
261 |
|
257 |
|
257 |
|
1.6 |
% |
1.6 |
% |
|
Bank-owned life insurance death benefit gains |
— |
|
— |
|
209 |
|
NM |
|
NM |
|
|
Miscellaneous |
6 |
|
62 |
|
128 |
|
(90.3 |
)% |
(95.3 |
)% |
| Total
noninterest income |
4,510 |
|
6,816 |
|
2,811 |
|
(33.8 |
)% |
60.4 |
% |
| Salaries
and employee benefits |
7,664 |
|
7,563 |
|
7,138 |
|
1.3 |
% |
7.4 |
% |
| Occupancy
and equipment |
2,030 |
|
2,115 |
|
1,653 |
|
(4.0 |
)% |
22.8 |
% |
| Data
processing |
1,022 |
|
1,044 |
|
803 |
|
(2.1 |
)% |
27.3 |
% |
|
Professional fees |
526 |
|
869 |
|
678 |
|
(39.5 |
)% |
(22.4 |
)% |
|
Advertising |
489 |
|
367 |
|
719 |
|
33.2 |
% |
(32.0 |
)% |
| FDIC
deposit insurance |
223 |
|
212 |
|
352 |
|
5.2 |
% |
(36.6 |
)% |
|
Directors' fees |
428 |
|
374 |
|
399 |
|
14.4 |
% |
7.3 |
% |
|
Amortization of core deposit intangible |
222 |
|
247 |
|
318 |
|
(10.1 |
)% |
(30.2 |
)% |
| Other
general and administrative |
762 |
|
609 |
|
875 |
|
25.1 |
% |
(12.9 |
)% |
| Total
noninterest expense |
13,366 |
|
13,400 |
|
12,935 |
|
(0.3 |
)% |
3.3 |
% |
| Income
before income taxes |
6,434 |
|
9,240 |
|
2,079 |
|
(30.4 |
)% |
209.5 |
% |
| Provision
for income taxes |
2,566 |
|
1,753 |
|
721 |
|
46.4 |
% |
255.9 |
% |
| Net
income |
$ |
3,868 |
|
$ |
7,487 |
|
$ |
1,358 |
|
(48.3 |
)% |
184.8 |
% |
|
|
|
|
|
|
|
| Earnings
per common share: |
|
|
|
|
|
|
Basic |
$ |
0.16 |
|
$ |
0.31 |
|
$ |
0.06 |
|
|
|
|
Diluted |
$ |
0.16 |
|
$ |
0.31 |
|
$ |
0.05 |
|
|
|
| Weighted
average shares outstanding: |
|
|
|
|
|
|
Basic |
23,952,443 |
23,911,419 |
24,575,211 |
|
|
|
Diluted |
24,346,553 |
24,275,665 |
24,699,794 |
|
|
| |
| Blue Hills Bancorp,
Inc.Consolidated Statements of Net Income-Year to
Date |
| |
| (Unaudited, dollars in
thousands, except share data) |
Year to Date |
| |
June 30, 2017 |
June 30, 2016 |
% Change |
| Interest
and fees on loans |
$ |
36,097 |
|
$ |
27,741 |
|
30.1 |
% |
| Interest
on securities |
3,782 |
|
4,332 |
|
(12.7 |
)% |
|
Dividends |
350 |
|
294 |
|
19.0 |
% |
|
Other |
126 |
|
52 |
|
142.3 |
% |
| Total
interest and dividend income |
40,355 |
|
32,419 |
|
24.5 |
% |
| Interest
on deposits |
6,777 |
|
4,776 |
|
41.9 |
% |
| Interest
on borrowings |
1,289 |
|
1,126 |
|
14.5 |
% |
| Total
interest expense |
8,066 |
|
5,902 |
|
36.7 |
% |
| Net
interest and dividend income |
32,289 |
|
26,517 |
|
21.8 |
% |
| Provision
for loan losses |
1,175 |
|
1,086 |
|
8.2 |
% |
| Net
interest and dividend income, after provision for loan losses |
31,114 |
|
25,431 |
|
22.3 |
% |
| Deposit
account fees |
661 |
|
624 |
|
5.9 |
% |
|
Interchange and ATM fees |
736 |
|
740 |
|
(0.5 |
)% |
| Mortgage
banking |
1,959 |
|
775 |
|
152.8 |
% |
| Loan
level derivative fee income |
1,531 |
|
961 |
|
59.3 |
% |
| Realized
securities gains (losses), net |
(94 |
) |
420 |
|
(122.4 |
)% |
| Gain on
exchange of cost basis investment |
5,947 |
|
— |
|
NM |
|
|
Bank-owned life insurance income |
518 |
|
514 |
|
0.8 |
% |
|
Bank-owned life insurance death benefit gains |
— |
|
209 |
|
NM |
|
|
Miscellaneous |
68 |
|
(55 |
) |
(223.6 |
)% |
| Total
noninterest income |
11,326 |
|
4,188 |
|
170.4 |
% |
| Salaries
and employee benefits |
15,227 |
|
14,023 |
|
8.6 |
% |
| Occupancy
and equipment |
4,145 |
|
3,272 |
|
26.7 |
% |
| Data
processing |
2,066 |
|
1,564 |
|
32.1 |
% |
|
Professional fees |
1,395 |
|
1,159 |
|
20.4 |
% |
|
Advertising |
856 |
|
1,251 |
|
(31.6 |
)% |
| FDIC
deposit insurance |
435 |
|
698 |
|
(37.7 |
)% |
|
Directors' fees |
802 |
|
737 |
|
8.8 |
% |
|
Amortization of core deposit intangible |
469 |
|
660 |
|
(28.9 |
)% |
| Other
general and administrative |
1,371 |
|
1,639 |
|
(16.4 |
)% |
| Total
noninterest expense |
26,766 |
|
25,003 |
|
7.1 |
% |
| Income
before income taxes |
15,674 |
|
4,616 |
|
239.6 |
% |
| Provision
for income taxes |
4,319 |
|
1,591 |
|
171.5 |
% |
| Net
income |
$ |
11,355 |
|
$ |
3,025 |
|
275.4 |
% |
|
|
|
|
|
| Earnings
per common share: |
|
|
|
|
Basic |
$ |
0.47 |
|
$ |
0.12 |
|
|
|
Diluted |
$ |
0.47 |
|
$ |
0.12 |
|
|
| Weighted
average shares outstanding: |
|
|
|
|
Basic |
23,932,044 |
24,817,260 |
|
|
Diluted |
24,311,222 |
24,912,729 |
|
| |
| Blue Hills Bancorp Inc. |
| Consolidated Statements of Net Income -
Trend |
|
|
Quarters Ended |
| (Unaudited, dollars in
thousands, except share data) |
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
| |
2017 |
2017 |
2016 |
2016 |
2016 |
| Interest
and fees on loans |
$ |
18,715 |
|
$ |
17,382 |
|
$ |
16,099 |
|
$ |
15,113 |
|
$ |
14,138 |
|
| Interest
on securities |
1,572 |
|
2,210 |
|
2,325 |
|
2,238 |
|
2,037 |
|
|
Dividends |
193 |
|
157 |
|
990 |
|
312 |
|
155 |
|
|
Other |
94 |
|
32 |
|
20 |
|
22 |
|
26 |
|
| Total
interest and dividend income |
20,574 |
|
19,781 |
|
19,434 |
|
17,685 |
|
16,356 |
|
| Interest
on deposits |
3,523 |
|
3,254 |
|
2,980 |
|
2,732 |
|
2,484 |
|
| Interest
on borrowings |
643 |
|
646 |
|
504 |
|
458 |
|
556 |
|
| Total
interest expense |
4,166 |
|
3,900 |
|
3,484 |
|
3,190 |
|
3,040 |
|
| Net
interest and dividend income |
16,408 |
|
15,881 |
|
15,950 |
|
14,495 |
|
13,316 |
|
| Provision
for loan losses |
1,118 |
|
57 |
|
927 |
|
2,872 |
|
1,113 |
|
| Net
interest and dividend income, after provision (credit) for loan
losses |
15,290 |
|
15,824 |
|
15,023 |
|
11,623 |
|
12,203 |
|
| Deposit
account fees |
341 |
|
320 |
|
356 |
|
347 |
|
307 |
|
|
Interchange and ATM fees |
388 |
|
348 |
|
388 |
|
418 |
|
393 |
|
| Mortgage
banking |
1,219 |
|
740 |
|
436 |
|
1,262 |
|
531 |
|
| Loan
level derivative fee income |
1,367 |
|
164 |
|
640 |
|
770 |
|
322 |
|
| Realized
securities gains (losses), net |
928 |
|
(1,022 |
) |
298 |
|
562 |
|
664 |
|
| Gain on
exchange of investment in Northeast Retirement Services |
— |
|
5,947 |
|
— |
|
— |
|
— |
|
|
Bank-owned life insurance income |
261 |
|
257 |
|
272 |
|
262 |
|
257 |
|
|
Bank-owned life insurance death benefit gains |
— |
|
— |
|
— |
|
297 |
|
209 |
|
|
Miscellaneous |
6 |
|
62 |
|
1,417 |
|
214 |
|
128 |
|
| Total
noninterest income |
4,510 |
|
6,816 |
|
3,807 |
|
4,132 |
|
2,811 |
|
| Salaries
and employee benefits |
7,664 |
|
7,563 |
|
7,234 |
|
7,596 |
|
7,138 |
|
| Occupancy
and equipment |
2,030 |
|
2,115 |
|
2,291 |
|
1,807 |
|
1,653 |
|
| Data
processing |
1,022 |
|
1,044 |
|
988 |
|
908 |
|
803 |
|
|
Professional fees |
526 |
|
869 |
|
736 |
|
743 |
|
678 |
|
|
Advertising |
489 |
|
367 |
|
677 |
|
495 |
|
719 |
|
| FDIC
deposit insurance |
223 |
|
212 |
|
157 |
|
270 |
|
352 |
|
|
Directors' fees |
428 |
|
374 |
|
377 |
|
344 |
|
399 |
|
|
Amortization of core deposit intangible |
222 |
|
247 |
|
271 |
|
294 |
|
318 |
|
| Other
general and administrative |
762 |
|
609 |
|
778 |
|
777 |
|
875 |
|
| Total
noninterest expense |
13,366 |
|
13,400 |
|
13,509 |
|
13,234 |
|
12,935 |
|
| Income
before income taxes |
6,434 |
|
9,240 |
|
5,321 |
|
2,521 |
|
2,079 |
|
| Provision
for income taxes |
2,566 |
|
1,753 |
|
1,323 |
|
891 |
|
721 |
|
| Net
income |
$ |
3,868 |
|
$ |
7,487 |
|
$ |
3,998 |
|
$ |
1,630 |
|
$ |
1,358 |
|
|
|
|
|
|
|
|
| Earnings
per common share: |
|
|
|
|
|
|
Basic |
$ |
0.16 |
|
$ |
0.31 |
|
$ |
0.17 |
|
$ |
0.07 |
|
$ |
0.06 |
|
|
Diluted |
$ |
0.16 |
|
$ |
0.31 |
|
$ |
0.17 |
|
$ |
0.07 |
|
$ |
0.05 |
|
| Weighted
average shares outstanding: |
|
|
|
|
|
|
Basic |
23,952,443 |
23,911,419 |
23,919,483 |
24,129,512 |
24,575,211 |
|
Diluted |
24,346,553 |
24,275,665 |
24,032,613 |
24,307,540 |
24,699,794 |
| |
| Blue Hills Bancorp Inc. |
| Average Balances/Yields |
|
(Unaudited, dollars in thousands) |
Quarters Ended |
| |
June 30, 2017 |
|
March 31, 2017 |
|
June 30, 2016 |
| |
Average balance |
Interest |
Yield/Cost |
|
Average balance |
Interest |
Yield/Cost |
|
Average balance |
Interest |
Yield/Cost |
| |
|
|
|
|
|
|
|
|
|
|
|
| Interest-earning
assets |
|
|
|
|
|
|
|
|
|
|
|
| Total
loans (1) |
$ |
2,046,288 |
|
$ |
18,770 |
|
3.68 |
% |
|
$ |
1,958,647 |
|
$ |
17,436 |
|
3.61 |
% |
|
$ |
1,635,256 |
|
$ |
14,191 |
|
3.49 |
% |
|
Securities (1) |
309,909 |
|
1,621 |
|
2.10 |
|
|
398,201 |
|
2,240 |
|
2.28 |
|
|
419,685 |
|
2,080 |
|
1.99 |
|
| Other
interest earning assets and FHLB stock |
36,768 |
|
243 |
|
2.65 |
|
|
31,842 |
|
171 |
|
2.18 |
|
|
36,584 |
|
162 |
|
1.78 |
|
| Total
interest-earning assets |
2,392,965 |
|
20,634 |
|
3.46 |
% |
|
2,388,690 |
|
19,847 |
|
3.37 |
% |
|
2,091,525 |
|
16,433 |
|
3.16 |
% |
| Non-interest-earning
assets |
102,750 |
|
|
|
|
93,397 |
|
|
|
|
100,104 |
|
|
|
| Total
assets |
$ |
2,495,715 |
|
|
|
|
$ |
2,482,087 |
|
|
|
|
$ |
2,191,629 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing
liabilities |
|
|
|
|
|
|
|
|
|
|
|
| NOW |
$ |
150,711 |
|
$ |
17 |
|
0.05 |
% |
|
$ |
145,396 |
|
$ |
16 |
|
0.04 |
% |
|
$ |
139,100 |
|
$ |
16 |
|
0.05 |
% |
| Regular
savings |
255,255 |
|
208 |
|
0.33 |
|
|
262,578 |
|
218 |
|
0.34 |
|
|
276,451 |
|
233 |
|
0.34 |
|
| Money
market |
688,600 |
|
1,669 |
|
0.97 |
|
|
653,165 |
|
1,519 |
|
0.94 |
|
|
479,564 |
|
983 |
|
0.82 |
|
|
Certificates of deposit |
573,997 |
|
1,629 |
|
1.14 |
|
|
567,642 |
|
1,501 |
|
1.07 |
|
|
458,328 |
|
1,252 |
|
1.10 |
|
| Total
interest-bearing deposits |
1,668,563 |
|
3,523 |
|
0.85 |
|
|
1,628,781 |
|
3,254 |
|
0.81 |
|
|
1,353,443 |
|
2,484 |
|
0.74 |
|
|
Borrowings |
204,786 |
|
643 |
|
1.26 |
|
|
256,500 |
|
646 |
|
1.02 |
|
|
271,242 |
|
556 |
|
0.82 |
|
| Total
interest-bearing liabilities |
1,873,349 |
|
4,166 |
|
0.89 |
% |
|
1,885,281 |
|
3,900 |
|
0.84 |
% |
|
1,624,685 |
|
3,040 |
|
0.75 |
% |
| Non-interest-bearing
deposits |
189,180 |
|
|
|
|
183,520 |
|
|
|
|
145,171 |
|
|
|
| Other
non-interest-bearing liabilities |
33,664 |
|
|
|
|
21,035 |
|
|
|
|
27,513 |
|
|
|
| Total
liabilities |
2,096,193 |
|
|
|
|
2,089,836 |
|
|
|
|
1,797,369 |
|
|
|
| Stockholders'
equity |
399,522 |
|
|
|
|
392,251 |
|
|
|
|
394,260 |
|
|
|
| Total
liabilities and stockholders' equity |
$ |
2,495,715 |
|
|
|
|
$ |
2,482,087 |
|
|
|
|
$ |
2,191,629 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Net interest and
dividend income (FTE) |
|
16,468 |
|
|
|
|
15,947 |
|
|
|
|
13,393 |
|
|
| Less: FTE
adjustment |
|
(60 |
) |
|
|
|
(66 |
) |
|
|
|
(77 |
) |
|
| Net interest and
dividend income (GAAP) |
|
$ |
16,408 |
|
|
|
|
$ |
15,881 |
|
|
|
|
$ |
13,316 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Net interest rate
spread (FTE) |
|
|
2.57 |
% |
|
|
|
2.53 |
% |
|
|
|
2.41 |
% |
| Net interest margin
(FTE) |
|
|
2.76 |
% |
|
|
|
2.71 |
% |
|
|
|
2.58 |
% |
| Total deposit cost |
|
|
0.76 |
% |
|
|
|
0.73 |
% |
|
|
|
0.67 |
% |
|
|
| (1)
Interest income on tax-exempt securities and loans was adjusted to
a fully taxable-equivalent (FTE) basis using a federal statutory
tax rate of 35%. A statutory tax rate of 34% was used prior to the
fourth quarter of 2016. |
| |
| Blue Hills Bancorp Inc. |
| Average Balances/Yields |
|
(Unaudited, dollars in thousands) |
Year to Date |
| |
June 30, 2017 |
|
June 30, 2016 |
| |
Average balance |
Interest |
Yield/Cost |
|
Average balance |
Interest |
Yield/Cost |
| Interest-earning
assets |
|
|
|
|
|
|
|
| Total
loans (1) |
$ |
2,002,710 |
|
$ |
36,206 |
|
3.65 |
% |
|
$ |
1,602,248 |
|
$ |
27,847 |
|
3.50 |
% |
|
Securities (1) |
352,212 |
|
3,861 |
|
2.21 |
|
|
424,850 |
|
4,448 |
|
2.11 |
|
| Other
interest earning assets and FHLB stock |
34,318 |
|
414 |
|
2.43 |
|
|
36,654 |
|
288 |
|
1.58 |
|
| Total
interest-earning assets |
2,389,240 |
|
40,481 |
|
3.42 |
% |
|
2,063,752 |
|
32,583 |
|
3.17 |
% |
| Non-interest-earning
assets |
99,698 |
|
|
|
|
100,319 |
|
|
|
| Total
assets |
$ |
2,488,938 |
|
|
|
|
$ |
2,164,071 |
|
|
|
| |
|
|
|
|
|
|
|
| Interest-bearing
liabilities |
|
|
|
|
|
|
|
| NOW |
$ |
148,068 |
|
$ |
33 |
|
0.04 |
% |
|
$ |
137,234 |
|
$ |
32 |
|
0.05 |
% |
| Regular
savings |
258,896 |
|
426 |
|
0.33 |
|
|
281,492 |
|
484 |
|
0.35 |
|
| Money
market |
670,980 |
|
3,188 |
|
0.96 |
|
|
455,276 |
|
1,829 |
|
0.81 |
|
|
Certificates of deposit |
570,837 |
|
3,130 |
|
1.11 |
|
|
446,951 |
|
2,431 |
|
1.09 |
|
| Total
interest-bearing deposits |
1,648,781 |
|
6,777 |
|
0.83 |
|
|
1,320,953 |
|
4,776 |
|
0.73 |
|
|
Borrowings |
230,500 |
|
1,289 |
|
1.13 |
|
|
274,549 |
|
1,126 |
|
0.82 |
|
| Total
interest-bearing liabilities |
1,879,281 |
|
8,066 |
|
0.87 |
% |
|
1,595,502 |
|
5,902 |
|
0.74 |
% |
| Non-interest-bearing
deposits |
186,366 |
|
|
|
|
146,566 |
|
|
|
| Other
non-interest-bearing liabilities |
27,385 |
|
|
|
|
26,993 |
|
|
|
| Total
liabilities |
2,093,032 |
|
|
|
|
1,769,061 |
|
|
|
| Stockholders'
equity |
395,906 |
|
|
|
|
395,010 |
|
|
|
| Total
liabilities and stockholders' equity |
$ |
2,488,938 |
|
|
|
|
$ |
2,164,071 |
|
|
|
| |
|
|
|
|
|
|
|
| Net interest and
dividend income (FTE) |
|
32,415 |
|
|
|
|
26,681 |
|
|
| Less: FTE
adjustment |
|
(126 |
) |
|
|
|
(164 |
) |
|
| Net interest and
dividend income (GAAP) |
|
$ |
32,289 |
|
|
|
|
$ |
26,517 |
|
|
| |
|
|
|
|
|
|
|
| Net interest rate
spread (FTE) |
|
|
2.55 |
% |
|
|
|
2.43 |
% |
| Net interest margin
(FTE) |
|
|
2.74 |
% |
|
|
|
2.60 |
% |
| Total deposit cost |
|
|
0.74 |
% |
|
|
|
0.65 |
% |
|
|
| (1)
Interest income on tax-exempt securities and loans was adjusted to
a fully taxable-equivalent (FTE) basis using a federal statutory
tax rate of 35%. A statutory tax rate of 34% was used for
2016. |
| |
| Blue Hills Bancorp, Inc. |
| Average Balances - Trend |
|
(Unaudited, dollars in thousands) |
Quarters Ended |
| |
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
| |
2017 |
2017 |
2016 |
2016 |
2016 |
| Interest-earning
assets |
|
|
|
|
|
| Total
loans |
$ |
2,046,288 |
|
$ |
1,958,647 |
|
$ |
1,823,046 |
|
$ |
1,726,088 |
|
$ |
1,635,256 |
|
|
Securities |
309,909 |
|
398,201 |
|
408,351 |
|
403,038 |
|
419,685 |
|
| Other
interest earning assets and FHLB stock |
36,768 |
|
31,842 |
|
29,235 |
|
31,236 |
|
36,584 |
|
| Total
interest-earning assets |
2,392,965 |
|
2,388,690 |
|
2,260,632 |
|
2,160,362 |
|
2,091,525 |
|
| Non-interest-earning
assets |
102,750 |
|
93,397 |
|
104,188 |
|
106,589 |
|
100,104 |
|
| Total
assets |
$ |
2,495,715 |
|
$ |
2,482,087 |
|
$ |
2,364,820 |
|
$ |
2,266,951 |
|
$ |
2,191,629 |
|
| |
|
|
|
|
|
| Interest-bearing
liabilities |
|
|
|
|
|
| NOW |
$ |
150,711 |
|
$ |
145,396 |
|
$ |
144,520 |
|
$ |
140,273 |
|
$ |
139,100 |
|
| Regular
savings |
255,255 |
|
262,578 |
|
265,589 |
|
272,950 |
|
276,451 |
|
| Money
market |
688,600 |
|
653,165 |
|
597,891 |
|
560,098 |
|
479,564 |
|
|
Certificates of deposit |
573,997 |
|
567,642 |
|
526,433 |
|
471,040 |
|
458,328 |
|
| Total
interest-bearing deposits |
1,668,563 |
|
1,628,781 |
|
1,534,433 |
|
1,444,361 |
|
1,353,443 |
|
|
Borrowings |
204,786 |
|
256,500 |
|
223,693 |
|
224,660 |
|
271,242 |
|
| Total
interest-bearing liabilities |
1,873,349 |
|
1,885,281 |
|
1,758,126 |
|
1,669,021 |
|
1,624,685 |
|
| Non-interest-bearing
deposits |
189,180 |
|
183,520 |
|
188,797 |
|
171,317 |
|
145,171 |
|
| Other
non-interest-bearing liabilities |
33,664 |
|
21,035 |
|
29,861 |
|
33,936 |
|
27,513 |
|
| Total
liabilities |
2,096,193 |
|
2,089,836 |
|
1,976,784 |
|
1,874,274 |
|
1,797,369 |
|
| Stockholders'
equity |
399,522 |
|
392,251 |
|
388,036 |
|
392,677 |
|
394,260 |
|
| Total
liabilities and stockholders' equity |
$ |
2,495,715 |
|
$ |
2,482,087 |
|
$ |
2,364,820 |
|
$ |
2,266,951 |
|
$ |
2,191,629 |
|
| |
| Blue Hills Bancorp, Inc. |
| Yield Trend |
|
(Unaudited, dollars in thousands) |
Quarters Ended |
| |
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
| |
2017 |
2017 |
2016 |
2016 |
2016 |
|
Interest-earning assets |
|
|
|
|
|
| Total
loans (1) |
3.68 |
% |
3.61 |
% |
3.53 |
% |
3.50 |
% |
3.49 |
% |
|
Securities (1) |
2.10 |
% |
2.28 |
% |
3.12 |
% |
2.38 |
% |
1.99 |
% |
| Other
interest earning assets and FHLB stock |
2.65 |
% |
2.18 |
% |
1.97 |
% |
2.17 |
% |
1.78 |
% |
| Total
interest-earning assets |
3.46 |
% |
3.37 |
% |
3.43 |
% |
3.27 |
% |
3.16 |
% |
| |
|
|
|
|
|
|
Interest-bearing liabilities |
|
|
|
|
|
| NOW |
0.05 |
% |
0.04 |
% |
0.05 |
% |
0.05 |
% |
0.05 |
% |
| Regular
savings |
0.33 |
% |
0.34 |
% |
0.34 |
% |
0.33 |
% |
0.34 |
% |
| Money
market |
0.97 |
% |
0.94 |
% |
0.88 |
% |
0.83 |
% |
0.82 |
% |
|
Certificates of deposit |
1.14 |
% |
1.07 |
% |
1.07 |
% |
1.11 |
% |
1.10 |
% |
| Total
interest-bearing deposits |
0.85 |
% |
0.81 |
% |
0.77 |
% |
0.75 |
% |
0.74 |
% |
|
Borrowings |
1.26 |
% |
1.02 |
% |
0.90 |
% |
0.81 |
% |
0.82 |
% |
|
Total interest-bearing liabilities |
0.89 |
% |
0.84 |
% |
0.79 |
% |
0.76 |
% |
0.75 |
% |
|
|
|
|
|
|
|
| Net
interest rate spread (FTE) (1) |
2.57 |
% |
2.53 |
% |
2.64 |
% |
2.51 |
% |
2.41 |
% |
| Net
interest margin (FTE) (1) |
2.76 |
% |
2.71 |
% |
2.82 |
% |
2.68 |
% |
2.58 |
% |
| Total
deposit cost |
0.76 |
% |
0.73 |
% |
0.69 |
% |
0.67 |
% |
0.67 |
% |
| |
| (1)
Interest income on tax-exempt securities and loans was adjusted to
a fully taxable-equivalent (FTE) basis using a federal statutory
tax rate of 35%. A statutory tax rate of 34% was used prior to the
fourth quarter of 2016. |
| |
| Blue Hills Bancorp Inc. |
| Reconciliation of GAAP to Non-GAAP Net
Income |
|
(Unaudited, dollars in thousands, except share data) |
Quarter Ended |
| |
June 30, 2017 |
| |
Income Before Income Taxes |
|
Provision for Income Taxes |
|
Net Income |
|
Earnings per Common Share (diluted) |
| GAAP basis |
$ |
6,434 |
|
|
$ |
2,566 |
|
|
$ |
3,868 |
|
|
$ |
0.16 |
|
| Less gain
on sale of remaining available-for-sale debt securities
portfolio |
(928 |
) |
|
(333 |
) |
|
(595 |
) |
|
(0.02 |
) |
| Non-GAAP basis |
$ |
5,506 |
|
|
$ |
2,233 |
|
|
$ |
3,273 |
|
|
$ |
0.14 |
|
| |
|
|
|
|
|
|
|
| |
Quarter Ended |
| |
March 31, 2017 |
| |
Income Before Income Taxes |
|
Provision for Income Taxes |
|
Net Income |
|
Earnings per Common Share (diluted) |
| GAAP basis |
$ |
9,240 |
|
|
$ |
1,753 |
|
|
$ |
7,487 |
|
|
$ |
0.31 |
|
| Less gain
on exchange of investment in Northeast Retirement Services |
(5,947 |
) |
|
(2,133 |
) |
|
(3,814 |
) |
|
(0.16 |
) |
| Add
realized loss on sale of mutual funds |
1,054 |
|
|
378 |
|
|
676 |
|
|
0.03 |
|
| Add
reversal of state tax valuation allowance |
— |
|
|
1,697 |
|
|
(1,697 |
) |
|
(0.07 |
) |
| Non-GAAP basis |
$ |
4,347 |
|
|
$ |
1,695 |
|
|
$ |
2,652 |
|
|
$ |
0.11 |
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
Year to Date |
| |
June 30, 2017 |
| |
Income Before Income Taxes |
|
Provision for Income Taxes |
|
Net Income |
|
Earnings per Common Share (diluted) |
| GAAP basis |
$ |
15,674 |
|
|
$ |
4,319 |
|
|
$ |
11,355 |
|
|
$ |
0.47 |
|
| Less gain
on exchange of investment in Northeast Retirement Services |
(5,947 |
) |
|
(2,133 |
) |
|
(3,814 |
) |
|
(0.16 |
) |
| Less gain
on sale of remaining available-for-sale debt securities
portfolio |
(928 |
) |
|
(333 |
) |
|
(595 |
) |
|
(0.02 |
) |
| Add
realized loss on sale of mutual funds |
1,054 |
|
|
378 |
|
|
676 |
|
|
0.03 |
|
| Add
reversal of state tax valuation allowance |
— |
|
|
1,697 |
|
|
(1,697 |
) |
|
(0.07 |
) |
| Non-GAAP basis |
$ |
9,853 |
|
|
$ |
3,928 |
|
|
$ |
5,925 |
|
|
$ |
0.25 |
|
| |
|
|
|
|
|
|
|
| The
Company's management believes that the presentation of net income
on a non-GAAP basis, excluding nonrecurring items, provides useful
information for evaluating the Company's operating results and any
related trends that may be affecting the Company's business. These
disclosures should not be viewed as a substitute for operating
results determined in accordance with GAAP. |
| |
| Blue Hills Bancorp, Inc. |
| Selected Financial Highlights |
|
(Unaudited, dollars in thousands, except share data) |
Quarters Ended |
| |
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
| |
2017 |
2017 |
2016 |
2016 |
2016 |
| Performance
Ratios (annualized) |
|
|
|
|
|
| |
|
|
|
|
|
| Diluted EPS |
|
|
|
|
|
| GAAP |
$ |
0.16 |
|
$ |
0.31 |
|
$ |
0.17 |
|
$ |
0.07 |
|
$ |
0.06 |
|
|
Non-GAAP |
|
0.14 |
|
|
0.11 |
|
|
n/a |
|
|
n/a |
|
|
n/a |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return on average
assets (ROAA) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP |
|
0.62 |
% |
|
1.22 |
% |
|
0.67 |
% |
|
0.29 |
% |
|
0.25 |
% |
|
Non-GAAP |
|
0.53 |
% |
|
0.43 |
% |
|
n/a |
|
|
n/a |
|
|
n/a |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return on average
equity (ROAE) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP |
|
3.88 |
% |
|
7.74 |
% |
|
4.10 |
% |
|
1.65 |
% |
|
1.39 |
% |
|
Non-GAAP |
|
3.29 |
% |
|
2.74 |
% |
|
n/a |
|
|
n/a |
|
|
n/a |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return on average
tangible common equity (ROATCE) (1) (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP |
|
3.99 |
% |
|
7.95 |
% |
|
4.22 |
% |
|
1.70 |
% |
|
1.43 |
% |
|
Non-GAAP |
|
3.37 |
% |
|
2.82 |
% |
|
n/a |
|
|
n/a |
|
|
n/a |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Efficiency ratio (2)
(3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP |
|
64 |
% |
|
59 |
% |
|
68 |
% |
|
71 |
% |
|
80 |
% |
|
Non-GAAP |
|
67 |
% |
|
75 |
% |
|
n/a |
|
|
n/a |
|
|
n/a |
|
| (1) Average tangible
common equity equals average total equity less goodwill and
intangibles. |
| |
| (2)Efficiency ratio
equals noninterest expense divided by net interest and dividend
income and noninterest income |
| |
| (3) ROATCE and the
efficiency ratio are non-GAAP measures and may not be comparable to
similar non-GAAP measures used by other companies. Management
believes that these non-GAAP measures are meaningful because it is
standard practice for companies in the banking industry to disclose
these measures. Therefore, management believes these measures
provide useful information to investors by allowing them to make
peer comparisons. |
| |
| See page 15 for
Non-GAAP financial measures. |
| |
| Blue Hills Bancorp, Inc. |
| Selected Financial Highlights |
|
(Unaudited, dollars in thousands, except share data) |
Year to Date |
| |
June 30, 2017 |
June 30, 2016 |
| Performance
Ratios (annualized) |
|
|
| |
|
|
| Diluted EPS |
|
|
| GAAP |
$ |
0.47 |
|
$ |
0.12 |
|
|
Non-GAAP |
|
0.25 |
|
|
n/a |
|
| |
|
|
|
|
|
|
| Return on average
assets (ROAA) |
|
|
|
|
|
|
| GAAP |
|
0.92 |
% |
|
0.39 |
% |
|
Non-GAAP |
|
0.48 |
% |
|
n/a |
|
| |
|
|
|
|
|
|
| Return on average
equity (ROAE) |
|
|
|
|
|
|
| GAAP |
|
5.78 |
% |
|
2.20 |
% |
|
Non-GAAP |
|
3.02 |
% |
|
n/a |
|
| |
|
|
|
|
|
|
| Return on average
tangible common equity (ROATCE) (1) (3) |
|
|
|
|
|
|
| GAAP |
|
5.94 |
% |
|
2.27 |
% |
|
Non-GAAP |
|
3.10 |
% |
|
n/a |
|
| |
|
|
|
|
|
|
| Efficiency ratio (2)
(3) |
|
61 |
% |
|
75 |
% |
| GAAP |
|
71 |
% |
|
n/a |
|
|
Non-GAAP |
|
|
| (1) Average tangible
common equity equals average total equity less goodwill and
intangibles. |
| |
| (2)Efficiency ratio
equals noninterest expense divided by net interest and dividend
income and noninterest income. |
| |
| (3) ROATCE and the
efficiency ratio are non-GAAP measures and may not be comparable to
similar non-GAAP measures used by other companies. Management
believes that these non-GAAP measures are meaningful because it is
standard practice for companies in the banking industry to disclose
these measures. Therefore, management believes these measures
provide useful information to investors by allowing them to make
peer comparisons. |
| |
| See page 15 for
Non-GAAP financial measures. |
| |
| Blue Hills Bancorp, Inc. |
| Selected Financial Highlights |
|
(Unaudited, dollars in thousands, except share data) |
At or for the Quarters Ended |
|
At or for the Six Months Ended |
| |
June 30, |
March 31, |
June 30, |
|
June 30, |
June 30, |
| |
2017 |
2017 |
2016 |
|
2017 |
2016 |
| Asset
Quality |
|
|
|
|
|
|
| Non-performing
Assets |
$ |
12,779 |
|
$ |
13,109 |
|
$ |
14,983 |
|
|
$ |
12,779 |
|
$ |
14,983 |
|
| Non-performing Assets/
Total Assets |
0.51 |
% |
0.53 |
% |
0.67 |
% |
|
0.51 |
% |
0.67 |
% |
| Allowance for Loan
Losses/ Total Loans |
0.97 |
% |
0.95 |
% |
1.07 |
% |
|
0.97 |
% |
1.07 |
% |
| Net Charge-offs
(Recoveries) |
$ |
76 |
|
$ |
(68 |
) |
$ |
19 |
|
|
$ |
8 |
|
$ |
109 |
|
| Annualized Net
Charge-offs (Recoveries)/ Average Loans |
0.01 |
% |
(0.01 |
)% |
— |
% |
|
— |
% |
0.01 |
% |
| Allowance for Loan
Losses/ Nonperforming Loans |
156 |
% |
144 |
% |
121 |
% |
|
156 |
% |
121 |
% |
| |
|
|
|
|
|
|
|
Capital/Other |
|
|
|
|
|
|
| Common shares
outstanding |
26,860,988 |
|
26,858,328 |
|
27,397,842 |
|
|
|
|
| Book value per
share |
$ |
14.79 |
|
$ |
14.78 |
|
$ |
14.31 |
|
|
|
|
| Tangible book value per
share |
$ |
14.42 |
|
$ |
14.40 |
|
$ |
13.90 |
|
|
|
|
| Tangible Common
Equity/Tangible Assets (1) (2) |
15.47 |
% |
15.55 |
% |
17.08 |
% |
|
|
|
| Full-time Equivalent
Employees |
230 |
|
227 |
|
231 |
|
|
|
|
|
|
| (1)
Tangible common equity equals total equity less goodwill and
intangibles, Tangible assets equals total assets less goodwill and
intangibles. |
|
|
|
(2)Tangible common equity/tangible assets is a non-GAAP measure and
may not be comparable to similar non-GAAP measures used by other
companies. Management believes that this non-GAAP measure is
meaningful because it is standard practice for companies in the
banking industry to disclose this measure. Therefore, management
believes this measure provides useful information to investors by
allowing them to make peer comparisons. |
Media and Investor Contact:
William Parent, 617-360-6520
Blue Hills Bancorp, Inc. (NASDAQ:BHBK)
Historical Stock Chart
From Aug 2024 to Sep 2024
Blue Hills Bancorp, Inc. (NASDAQ:BHBK)
Historical Stock Chart
From Sep 2023 to Sep 2024
