Net Income of $22.5 million, EPS of
$0.28
Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today
announced net income of $22.5 million, or $0.28 per basic and
diluted share, for the first quarter of 2019, compared to $21.1
million, or $0.26 per basic and diluted share, for the fourth
quarter of 2018, and $18.6 million, or $0.24 per basic and diluted
share, for the first quarter of 2018.
Paul Perrault, President and Chief Executive
Officer of the Company, commented on the first quarter earnings,
“Brookline Bancorp experienced a strong start to 2019, today we
report earnings of $22.5 million for the first quarter of 2019 or
$0.28 per share. We are looking forward to building on this growth
during the rest of the year.”
EASTERN FUNDING, LLC ACQUISITION
On January 4, 2019, Brookline Bank, a subsidiary
of the Company, completed the purchase of the remaining 15.93
percent interest in Eastern Funding, LLC for a total cash
consideration of $35.9 million.
BALANCE SHEET
Total assets at March 31, 2019 increased
$126.3 million to $7.5 billion from $7.4 billion at
December 31, 2018, and increased $271.0 million from $7.2
billion at March 31, 2018 driven by growth in the loan
portfolio. At March 31, 2019, total loans and leases were $6.4
billion, representing an increase of $84.7 million from
December 31, 2018, and an increase of $273.7 million from
March 31, 2018 driven by growth in all major loan
categories.
The Company continued to redirect cash flows
from the investment portfolio to fund loan demand. Investment
securities at March 31, 2019 decreased $14.7 million to $607.1
million, comprising 8.07 percent of total assets, as compared to
$621.8 million, or 8.41 percent of total assets, at
December 31, 2018, and decreased approximately $68.7 million
from $675.7 million, or 9.32 percent of total assets, at
March 31, 2018.
Total deposits at March 31, 2019 increased
$166.6 million to $5.6 billion from $5.5 billion at
December 31, 2018 and increased $429.1 million from $5.2
billion at March 31, 2018 driven primarily by growth in
certificates of deposit.
Total borrowings at March 31, 2019
decreased $54.5 million to $866.0 million from $920.5 million at
December 31, 2018 and decreased $233.4 million from $1.1
billion at March 31, 2018 as deposit growth was used to pay
down borrowings.
The ratio of stockholders’ equity to total
assets was 11.98 percent at March 31, 2019, as compared to
12.18 percent at December 31, 2018, and 11.94 percent at
March 31, 2018. The ratio of tangible stockholders’ equity to
tangible assets was 9.99 percent at March 31, 2019, as
compared to 10.15 percent at December 31, 2018, and 9.85
percent at March 31, 2018. Tangible book value per share
increased $0.01 from $9.21 at December 31, 2018 to $9.22 at
March 31, 2019, compared to $8.69 at March 31, 2018.
NET INTEREST INCOME
Net interest income decreased $0.2 million to
$63.0 million during the first quarter of 2019 from the quarter
ended December 31, 2018 due to the number of days in the
quarter. The net interest margin increased 6 basis points to 3.64
percent for the three months ended March 31, 2019.
NON-INTEREST INCOME
Non-interest income for the quarter ended
March 31, 2019 increased $0.1 million to $6.6 million from
$6.5 million for the quarter ended December 31, 2018. The
increase was primarily driven by a mark to market gain on
investment securities compared to a loss in the prior quarter.
PROVISION FOR CREDIT LOSSES
The Company recorded a provision for credit
losses of $1.4 million for the quarter ended March 31, 2019,
compared to $0.1 million for the quarter ended December 31,
2018.
Total net charge-offs for the first quarter of
2019 were $2.1 million compared to $1.3 million in the fourth
quarter of 2018. Charge-offs were largely related to taxi medallion
loans against previously established specific reserves. The ratio
of net charge-offs to average loans and leases on an annualized
basis increased to 13 basis points for the first quarter of 2019
from 8 basis points for the fourth quarter of 2018.
The allowance for loan and lease losses
represented 0.91 percent of total loans and leases at
March 31, 2019, compared to 0.93 percent at December 31,
2018, and 0.96 percent at March 31, 2018. The allowance for
loan and lease losses related to originated loans and leases
represented 0.93 percent of originated loans and leases at
March 31, 2019, compared to 0.96 percent at December 31,
2018, and 1.03 percent at March 31, 2018.
NON-INTEREST EXPENSE
Non-interest expense for the quarter ended
March 31, 2019 decreased $1.4 million to $38.9 million from
$40.3 million for the quarter ended December 31, 2018. The
decrease was primarily driven by decreases of $0.7 million in
compensation and employee benefits, $0.1 million in professional
services, $0.1 million in FDIC insurance, $0.1 million in
amortization of identified intangible assets, $0.5 million in
merger and acquisition expense and $0.9 million in other
non-interest expense, partially offset by increases of $0.7 million
in occupancy expense and $0.3 million in advertising and marketing
expense.
PROVISION FOR INCOME TAXES
The effective tax rate was 23.4 percent and 24.1
percent for the three months ended March 31, 2019 and
December 31, 2018, respectively.
RETURNS ON AVERAGE ASSETS AND AVERAGE
EQUITY
The annualized return on average assets
increased to 1.21 percent during the first quarter of 2019 from
1.15 percent for the fourth quarter of 2018. The annualized return
on average tangible assets increased to 1.24 percent for the first
quarter of 2019 from 1.17 percent for the fourth quarter of
2018.
The annualized return on average stockholders'
equity increased to 10.14 percent during the first quarter of 2019
from 9.40 percent for the fourth quarter of 2018. The annualized
return on average tangible stockholders’ equity increased to 12.48
percent for the first quarter of 2019 from 11.54 percent for the
fourth quarter of 2018.
ASSET QUALITY
The ratio of nonperforming loans and leases to
total loans and leases was 0.36 percent at March 31, 2019 as
compared to 0.38 percent at December 31, 2018. Nonperforming
loans and leases decreased $1.3 million to $22.8 million at
March 31, 2019 from $24.1 million at December 31, 2018.
The ratio of nonperforming assets to total assets was 0.36 percent
at March 31, 2019 as compared to 0.38 percent at
December 31, 2018. Nonperforming assets decreased $1.4 million
to $26.7 million at March 31, 2019 from $28.1 million at
December 31, 2018.
DIVIDEND DECLARED
The Company’s Board of Directors approved a
dividend of $0.11 per share for the quarter ended March 31,
2019, an increase of half a cent from the prior period. The
dividend will be paid on May 24, 2019 to stockholders of record on
May 10, 2019, representing an increase of 4.8 percent from the
prior quarter and a 10 percent increase from the prior year.
CONFERENCE CALL
The Company will conduct a conference
call/webcast at 1:30 PM Eastern Daylight Time on Thursday, April
25, 2019 to discuss the results for the quarter, business
highlights and outlook. The call can be accessed by dialing
877-504-4120 (United States) or 412-902-6650
(internationally). A recorded playback of the call will be
available for one week following the call at 877-344-7529 (United
States) or 412-317-0088 (internationally). The passcode for the
playback is 10130049. The call will be available live and in a
recorded version on the Company’s website under “Investor
Relations” at www.brooklinebancorp.com.
ABOUT BROOKLINE BANCORP, INC.
Brookline Bancorp, Inc., a bank holding company
with $7.5 billion in assets and branch locations in Massachusetts
and Rhode Island, is headquartered in Boston, Massachusetts and
operates as the holding company for Brookline Bank, Bank Rhode
Island, and First Ipswich Bank (the "banks"). The Company provides
commercial and retail banking services, cash management and
investment services to customers throughout Central New England.
More information about Brookline Bancorp, Inc. and its banks can be
found at the following websites: www.brooklinebank.com,
www.bankri.com, and www.firstipswich.com.
FORWARD-LOOKING STATEMENTS
Certain statements contained in this press
release that are not historical facts may constitute
forward-looking statements within the meaning of Section 27A
of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended, and are intended
to be covered by the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements involve risks and uncertainties. The Company’s actual
results could differ materially from those projected in the
forward-looking statements as a result of, among others, the risks
outlined in the Company’s Annual Report on Form 10-K, as updated by
its Quarterly Reports on Form 10-Q and other filings submitted to
the Securities and Exchange Commission ("SEC"). The Company does
not undertake any obligation to update any forward-looking
statement to reflect circumstances or events that occur after the
date the forward-looking statements are made.
BASIS OF PRESENTATION
The Company's consolidated financial statements
have been prepared in conformity with generally accepted accounting
principles (“GAAP”) as set forth by the Financial Accounting
Standards Board in its Accounting Standards Codification and
through the rules and interpretive releases of the SEC under the
authority of federal securities laws. Certain amounts previously
reported have been reclassified to conform to the current period's
presentation.
NON-GAAP FINANCIAL MEASURES
The Company uses certain non-GAAP financial
measures, such as operating earnings, operating return on average
assets, operating return on average tangible assets, operating
return on average stockholders' equity, operating return on average
tangible stockholders' equity, the allowance for loan and lease
losses related to originated loans and leases as a percentage of
originated loans and leases, tangible book value per common share,
tangible stockholders’ equity to tangible assets, return on average
tangible assets (annualized) and return on average tangible
stockholders' equity (annualized). These non-GAAP financial
measures provide information for investors to effectively analyze
financial trends of ongoing business activities, and to enhance
comparability with peers across the financial services sector. A
detailed reconciliation table of the Company's GAAP to the non-GAAP
measures is attached.
Contact:
Carl M. CarlsonBrookline Bancorp, Inc.Chief Financial
Officer(617) 425-5331ccarlson@brkl.com
BROOKLINE BANCORP, INC. AND
SUBSIDIARIES |
Selected Financial Highlights
(Unaudited) |
|
|
At and for the Three Months
Ended |
|
March 31, 2019 |
|
December 31,
2018 |
|
September 30,
2018 |
|
June 30, 2018 |
|
March 31, 2018 |
|
|
|
(Dollars In Thousands Except per Share Data) |
Earnings
Data: |
|
|
|
|
|
|
|
|
|
Net interest income |
$ |
62,999 |
|
|
$ |
63,159 |
|
|
$ |
62,332 |
|
|
$ |
62,717 |
|
|
$ |
59,491 |
|
Provision
for credit losses |
|
1,353 |
|
|
|
123 |
|
|
|
2,717 |
|
|
|
1,470 |
|
|
|
641 |
|
Non-interest income |
|
6,630 |
|
|
|
6,461 |
|
|
|
7,069 |
|
|
|
5,526 |
|
|
|
6,168 |
|
Non-interest expense |
|
38,871 |
|
|
|
40,282 |
|
|
|
37,310 |
|
|
|
37,702 |
|
|
|
39,938 |
|
Income
before provision for income taxes |
|
29,405 |
|
|
|
29,215 |
|
|
|
29,374 |
|
|
|
29,071 |
|
|
|
25,080 |
|
Net
income attributable to Brookline Bancorp, Inc. |
|
22,467 |
|
|
|
21,138 |
|
|
|
22,460 |
|
|
|
20,831 |
|
|
|
18,633 |
|
|
|
|
|
|
|
|
|
|
|
Performance
Ratios: |
|
|
|
|
|
|
|
|
|
Net
interest margin (1) |
|
3.64 |
% |
|
|
3.58 |
% |
|
|
3.57 |
% |
|
|
3.64 |
% |
|
|
3.66 |
% |
Interest-rate spread (1) |
|
3.18 |
% |
|
|
3.25 |
% |
|
|
3.27 |
% |
|
|
3.36 |
% |
|
|
3.38 |
% |
Return on
average assets (annualized) |
|
1.21 |
% |
|
|
1.15 |
% |
|
|
1.23 |
% |
|
|
1.15 |
% |
|
|
1.08 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
average tangible assets (annualized) (non-GAAP) |
|
1.24 |
% |
|
|
1.17 |
% |
|
|
1.26 |
% |
|
|
1.17 |
% |
|
|
1.10 |
% |
Return on
average stockholders' equity (annualized) |
|
10.14 |
% |
|
|
9.40 |
% |
|
|
10.10 |
% |
|
|
9.53 |
% |
|
|
8.98 |
% |
Return on
average tangible stockholders' equity (annualized) (non-GAAP) |
|
12.48 |
% |
|
|
11.54 |
% |
|
|
12.44 |
% |
|
|
11.80 |
% |
|
|
11.01 |
% |
Efficiency ratio (2) |
|
55.83 |
% |
|
|
57.86 |
% |
|
|
53.76 |
% |
|
|
55.25 |
% |
|
|
60.83 |
% |
|
|
|
|
|
|
|
|
|
|
Per Common
Share Data: |
|
|
|
|
|
|
|
|
|
Net
income — Basic |
$ |
0.28 |
|
|
$ |
0.26 |
|
|
$ |
0.28 |
|
|
$ |
0.26 |
|
|
$ |
0.24 |
|
Net
income — Diluted |
|
0.28 |
|
|
|
0.26 |
|
|
|
0.28 |
|
|
|
0.26 |
|
|
|
0.24 |
|
Cash
dividends declared |
|
0.110 |
|
|
|
0.105 |
|
|
|
0.105 |
|
|
|
0.100 |
|
|
|
0.100 |
|
Book
value per share (end of period) |
|
11.30 |
|
|
|
11.30 |
|
|
|
11.08 |
|
|
|
10.94 |
|
|
|
10.80 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible
book value per share (end of period) (non-GAAP) |
|
9.22 |
|
|
|
9.21 |
|
|
|
9.00 |
|
|
|
8.85 |
|
|
|
8.69 |
|
Stock
price (end of period) |
|
14.40 |
|
|
|
13.82 |
|
|
|
16.70 |
|
|
|
18.60 |
|
|
|
16.20 |
|
|
Balance
Sheet: |
|
|
|
|
|
|
|
|
|
Total
assets |
$ |
7,519,130 |
|
|
$ |
7,392,805 |
|
|
$ |
7,320,596 |
|
|
$ |
7,285,710 |
|
|
$ |
7,248,114 |
|
Total
loans and leases |
|
6,388,197 |
|
|
|
6,303,516 |
|
|
|
6,227,707 |
|
|
|
6,171,274 |
|
|
|
6,114,461 |
|
Total
deposits |
|
5,620,633 |
|
|
|
5,454,044 |
|
|
|
5,233,611 |
|
|
|
5,198,280 |
|
|
|
5,191,520 |
|
Brookline
Bancorp, Inc. stockholders’ equity |
|
900,572 |
|
|
|
900,140 |
|
|
|
890,368 |
|
|
|
877,283 |
|
|
|
865,777 |
|
|
|
|
|
|
|
|
|
|
|
Asset
Quality: |
|
|
|
|
|
|
|
|
|
Nonperforming assets |
$ |
26,721 |
|
|
$ |
28,116 |
|
|
$ |
29,718 |
|
|
$ |
30,145 |
|
|
$ |
30,242 |
|
Nonperforming assets as a percentage of total assets |
|
0.36 |
% |
|
|
0.38 |
% |
|
|
0.41 |
% |
|
|
0.41 |
% |
|
|
0.42 |
% |
Allowance
for loan and lease losses |
$ |
58,041 |
|
|
$ |
58,692 |
|
|
$ |
59,997 |
|
|
$ |
57,981 |
|
|
$ |
58,714 |
|
Allowance
for loan and lease losses as a percentage of total loans and
leases |
|
0.91 |
% |
|
|
0.93 |
% |
|
|
0.96 |
% |
|
|
0.94 |
% |
|
|
0.96 |
% |
Net loan
and lease charge-offs |
$ |
2,101 |
|
|
$ |
1,252 |
|
|
$ |
564 |
|
|
$ |
2,330 |
|
|
$ |
505 |
|
Net loan
and lease charge-offs as a percentage of average loans and leases
(annualized) |
|
0.13 |
% |
|
|
0.08 |
% |
|
|
0.04 |
% |
|
|
0.15 |
% |
|
|
0.03 |
% |
|
|
|
|
|
|
|
|
|
|
Capital
Ratios: |
|
|
|
|
|
|
|
|
|
Stockholders’ equity to total assets |
|
11.98 |
% |
|
|
12.18 |
% |
|
|
12.16 |
% |
|
|
12.04 |
% |
|
|
11.94 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible
stockholders’ equity to tangible assets (non-GAAP) |
|
9.99 |
% |
|
|
10.15 |
% |
|
|
10.11 |
% |
|
|
9.97 |
% |
|
|
9.85 |
% |
|
|
|
|
|
|
|
|
|
|
(1)
Calculated on a fully tax-equivalent basis. |
|
|
|
|
|
|
|
|
|
(2)
Calculated as non-interest expense as a percentage of net interest
income plus non-interest income. |
|
|
|
|
|
|
|
|
|
|
BROOKLINE BANCORP, INC. AND
SUBSIDIARIES |
Consolidated Balance Sheets
(Unaudited) |
|
|
March 31,2019 |
|
December 31,2018 |
|
September 30,2018 |
|
June 30, 2018 |
|
March 31,2018 |
|
|
|
|
ASSETS |
(In Thousands Except Share Data) |
Cash and due from
banks |
$ |
51,276 |
|
|
$ |
47,542 |
|
|
$ |
30,762 |
|
|
$ |
32,724 |
|
|
$ |
34,713 |
|
Short-term
investments |
|
61,063 |
|
|
|
42,042 |
|
|
|
23,114 |
|
|
|
22,754 |
|
|
|
49,743 |
|
Total
cash and cash equivalents |
|
112,339 |
|
|
|
89,584 |
|
|
|
53,876 |
|
|
|
55,478 |
|
|
|
84,456 |
|
Investment securities
available-for-sale |
|
489,020 |
|
|
|
502,793 |
|
|
|
534,788 |
|
|
|
558,602 |
|
|
|
558,357 |
|
Investment securities
held-to-maturity |
|
113,694 |
|
|
|
114,776 |
|
|
|
115,684 |
|
|
|
116,670 |
|
|
|
117,352 |
|
Equity securities
held-for-trading |
|
4,341 |
|
|
|
4,207 |
|
|
|
4,169 |
|
|
|
— |
|
|
|
— |
|
Total
investment securities |
|
607,055 |
|
|
|
621,776 |
|
|
|
654,641 |
|
|
|
675,272 |
|
|
|
675,709 |
|
Loans and leases
held-for-sale |
|
869 |
|
|
|
3,247 |
|
|
|
937 |
|
|
|
1,034 |
|
|
|
756 |
|
Loans and leases: |
|
|
|
|
|
|
|
|
|
Commercial real estate loans: |
|
|
|
|
|
|
|
|
|
Commercial real estate mortgage |
|
2,355,507 |
|
|
|
2,330,725 |
|
|
|
2,287,979 |
|
|
|
2,269,520 |
|
|
|
2,284,488 |
|
Multi-family mortgage |
|
855,703 |
|
|
|
847,711 |
|
|
|
828,849 |
|
|
|
816,311 |
|
|
|
793,006 |
|
Construction |
|
199,258 |
|
|
|
173,300 |
|
|
|
164,217 |
|
|
|
178,335 |
|
|
|
169,440 |
|
Total
commercial real estate loans |
|
3,410,468 |
|
|
|
3,351,736 |
|
|
|
3,281,045 |
|
|
|
3,264,166 |
|
|
|
3,246,934 |
|
Commercial loans and leases: |
|
|
|
|
|
|
|
|
|
Commercial |
|
741,577 |
|
|
|
736,418 |
|
|
|
771,200 |
|
|
|
761,964 |
|
|
|
761,540 |
|
Equipment
financing |
|
995,863 |
|
|
|
982,089 |
|
|
|
954,579 |
|
|
|
920,643 |
|
|
|
892,341 |
|
Condominium association |
|
49,142 |
|
|
|
50,451 |
|
|
|
52,205 |
|
|
|
53,537 |
|
|
|
52,739 |
|
Total
commercial loans and leases |
|
1,786,582 |
|
|
|
1,768,958 |
|
|
|
1,777,984 |
|
|
|
1,736,144 |
|
|
|
1,706,620 |
|
Consumer
loans: |
|
|
|
|
|
|
|
|
|
Residential mortgage |
|
775,578 |
|
|
|
782,968 |
|
|
|
759,167 |
|
|
|
754,818 |
|
|
|
766,687 |
|
Home
equity |
|
376,126 |
|
|
|
376,484 |
|
|
|
380,303 |
|
|
|
382,597 |
|
|
|
364,928 |
|
Other
consumer |
|
39,443 |
|
|
|
23,370 |
|
|
|
29,208 |
|
|
|
33,549 |
|
|
|
29,292 |
|
Total
consumer loans |
|
1,191,147 |
|
|
|
1,182,822 |
|
|
|
1,168,678 |
|
|
|
1,170,964 |
|
|
|
1,160,907 |
|
Total
loans and leases |
|
6,388,197 |
|
|
|
6,303,516 |
|
|
|
6,227,707 |
|
|
|
6,171,274 |
|
|
|
6,114,461 |
|
Allowance for loan and
lease losses |
|
(58,041 |
) |
|
|
(58,692 |
) |
|
|
(59,997 |
) |
|
|
(57,981 |
) |
|
|
(58,714 |
) |
Net loans
and leases |
|
6,330,156 |
|
|
|
6,244,824 |
|
|
|
6,167,710 |
|
|
|
6,113,293 |
|
|
|
6,055,747 |
|
Restricted equity
securities |
|
54,192 |
|
|
|
61,751 |
|
|
|
63,963 |
|
|
|
68,343 |
|
|
|
66,164 |
|
Premises and equipment,
net of accumulated depreciation |
|
75,520 |
|
|
|
76,382 |
|
|
|
77,886 |
|
|
|
79,194 |
|
|
|
80,268 |
|
Right-of-use asset
operating leases |
|
26,205 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Deferred tax asset |
|
27,084 |
|
|
|
21,495 |
|
|
|
22,249 |
|
|
|
20,826 |
|
|
|
19,198 |
|
Goodwill |
|
160,427 |
|
|
|
160,427 |
|
|
|
160,427 |
|
|
|
160,427 |
|
|
|
160,896 |
|
Identified intangible
assets, net of accumulated amortization |
|
5,684 |
|
|
|
6,086 |
|
|
|
6,623 |
|
|
|
7,160 |
|
|
|
7,697 |
|
Other real estate owned
and repossessed assets |
|
3,912 |
|
|
|
4,019 |
|
|
|
3,934 |
|
|
|
4,352 |
|
|
|
3,963 |
|
Other assets |
|
115,687 |
|
|
|
103,214 |
|
|
|
108,350 |
|
|
|
100,331 |
|
|
|
93,260 |
|
Total
assets |
$ |
7,519,130 |
|
|
$ |
7,392,805 |
|
|
$ |
7,320,596 |
|
|
$ |
7,285,710 |
|
|
$ |
7,248,114 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
Non-interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
Demand
checking accounts |
$ |
1,011,031 |
|
|
$ |
1,033,551 |
|
|
$ |
1,017,234 |
|
|
$ |
1,002,954 |
|
|
$ |
987,153 |
|
Interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
NOW
accounts |
|
369,896 |
|
|
|
336,317 |
|
|
|
322,587 |
|
|
|
346,936 |
|
|
|
342,374 |
|
Savings
accounts |
|
625,770 |
|
|
|
619,961 |
|
|
|
612,210 |
|
|
|
603,079 |
|
|
|
637,920 |
|
Money
market accounts |
|
1,706,708 |
|
|
|
1,675,050 |
|
|
|
1,623,220 |
|
|
|
1,704,652 |
|
|
|
1,862,351 |
|
Certificate of deposit accounts |
|
1,907,228 |
|
|
|
1,789,165 |
|
|
|
1,658,360 |
|
|
|
1,540,659 |
|
|
|
1,361,722 |
|
Total
interest-bearing deposits |
|
4,609,602 |
|
|
|
4,420,493 |
|
|
|
4,216,377 |
|
|
|
4,195,326 |
|
|
|
4,204,367 |
|
Total
deposits |
|
5,620,633 |
|
|
|
5,454,044 |
|
|
|
5,233,611 |
|
|
|
5,198,280 |
|
|
|
5,191,520 |
|
Borrowed funds: |
|
|
|
|
|
|
|
|
|
Advances
from the FHLBB |
|
730,018 |
|
|
|
784,375 |
|
|
|
959,446 |
|
|
|
991,091 |
|
|
|
982,533 |
|
Subordinated debentures and notes |
|
83,472 |
|
|
|
83,433 |
|
|
|
83,392 |
|
|
|
83,352 |
|
|
|
83,311 |
|
Other
borrowed funds |
|
52,515 |
|
|
|
52,734 |
|
|
|
40,048 |
|
|
|
36,480 |
|
|
|
33,585 |
|
Total
borrowed funds |
|
866,005 |
|
|
|
920,542 |
|
|
|
1,082,886 |
|
|
|
1,110,923 |
|
|
|
1,099,429 |
|
Operating lease
liabilities |
|
26,205 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Mortgagors’ escrow
accounts |
|
7,517 |
|
|
|
7,426 |
|
|
|
8,227 |
|
|
|
8,122 |
|
|
|
8,395 |
|
Accrued expenses and
other liabilities |
|
98,198 |
|
|
|
100,174 |
|
|
|
96,047 |
|
|
|
82,017 |
|
|
|
74,024 |
|
Total
liabilities |
|
6,618,558 |
|
|
|
6,482,186 |
|
|
|
6,420,771 |
|
|
|
6,399,342 |
|
|
|
6,373,368 |
|
Stockholders'
equity: |
|
|
|
|
|
|
|
|
|
Brookline
Bancorp, Inc. stockholders’ equity: |
|
|
|
|
|
|
|
|
|
Common
stock, $0.01 par value; 200,000,000 shares authorized; 85,177,172
shares issued, 85,177,172 shares issued, 85,177,172 shares issued,
85,177,172 shares issued, and 85,177,172 shares issued,
respectively |
|
852 |
|
|
|
852 |
|
|
|
852 |
|
|
|
852 |
|
|
|
852 |
|
Additional paid-in capital |
|
736,872 |
|
|
|
755,629 |
|
|
|
753,941 |
|
|
|
756,254 |
|
|
|
755,843 |
|
Retained
earnings, partially restricted |
|
226,929 |
|
|
|
212,838 |
|
|
|
200,151 |
|
|
|
185,734 |
|
|
|
172,934 |
|
Accumulated other comprehensive loss |
|
(4,393 |
) |
|
|
(9,460 |
) |
|
|
(15,599 |
) |
|
|
(13,415 |
) |
|
|
(11,666 |
) |
Treasury
stock, at cost; |
|
|
|
|
|
|
|
|
|
5,020,025
shares, 5,020,025 shares, 4,291,317 shares, 4,409,501 shares, and
4,401,333 shares, respectively |
|
(59,121 |
) |
|
|
(59,120 |
) |
|
|
(48,334 |
) |
|
|
(51,454 |
) |
|
|
(51,454 |
) |
Unallocated common stock held by the Employee Stock Ownership
Plan; |
|
|
|
|
|
|
|
|
|
104,079
shares, 109,950 shares, 118,050 shares,126,144 shares, and 134,238
shares, respectively |
|
(567 |
) |
|
|
(599 |
) |
|
|
(643 |
) |
|
|
(688 |
) |
|
|
(732 |
) |
Total
Brookline Bancorp, Inc. stockholders’ equity |
|
900,572 |
|
|
|
900,140 |
|
|
|
890,368 |
|
|
|
877,283 |
|
|
|
865,777 |
|
Noncontrolling interest
in subsidiary |
|
— |
|
|
|
10,479 |
|
|
|
9,457 |
|
|
|
9,085 |
|
|
|
8,969 |
|
Total
stockholders' equity |
|
900,572 |
|
|
|
910,619 |
|
|
|
899,825 |
|
|
|
886,368 |
|
|
|
874,746 |
|
Total
liabilities and stockholders' equity |
$ |
7,519,130 |
|
|
$ |
7,392,805 |
|
|
$ |
7,320,596 |
|
|
$ |
7,285,710 |
|
|
$ |
7,248,114 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BROOKLINE BANCORP, INC. AND SUBSIDIARIES |
Consolidated Statements of Income
(Unaudited) |
|
|
Three Months Ended |
|
March 31,2019 |
|
December 31,2018 |
|
September
30,2018 |
|
June 30,2018 |
|
March 31,2018 |
|
|
|
|
|
(In Thousands Except Share Data) |
Interest and dividend
income: |
|
|
|
|
|
|
|
|
|
Loans and leases |
$ |
80,672 |
|
$ |
78,791 |
|
|
$ |
75,877 |
|
|
$ |
73,329 |
|
$ |
67,272 |
Debt
securities |
|
3,236 |
|
|
3,489 |
|
|
|
3,585 |
|
|
|
3,563 |
|
|
3,323 |
Marketable and restricted equity securities |
|
911 |
|
|
1,008 |
|
|
|
1,029 |
|
|
|
1,003 |
|
|
924 |
Short-term investments |
|
267 |
|
|
256 |
|
|
|
145 |
|
|
|
179 |
|
|
120 |
Total
interest and dividend income |
|
85,086 |
|
|
83,544 |
|
|
|
80,636 |
|
|
|
78,074 |
|
|
71,639 |
Interest expense: |
|
|
|
|
|
|
|
|
|
Deposits |
|
15,948 |
|
|
13,744 |
|
|
|
11,916 |
|
|
|
9,219 |
|
|
7,099 |
Borrowed
funds |
|
6,139 |
|
|
6,641 |
|
|
|
6,388 |
|
|
|
6,138 |
|
|
5,049 |
Total
interest expense |
|
22,087 |
|
|
20,385 |
|
|
|
18,304 |
|
|
|
15,357 |
|
|
12,148 |
Net interest
income |
|
62,999 |
|
|
63,159 |
|
|
|
62,332 |
|
|
|
62,717 |
|
|
59,491 |
Provision for credit
losses |
|
1,353 |
|
|
123 |
|
|
|
2,717 |
|
|
|
1,470 |
|
|
641 |
Net
interest income after provision for credit losses |
|
61,646 |
|
|
63,036 |
|
|
|
59,615 |
|
|
|
61,247 |
|
|
58,850 |
Non-interest
income: |
|
|
|
|
|
|
|
|
|
Deposit
fees |
|
2,523 |
|
|
2,669 |
|
|
|
2,648 |
|
|
|
2,620 |
|
|
2,463 |
Loan
fees |
|
413 |
|
|
390 |
|
|
|
417 |
|
|
|
330 |
|
|
290 |
Loan
level derivative income, net |
|
1,745 |
|
|
1,811 |
|
|
|
2,192 |
|
|
|
571 |
|
|
866 |
Gain
(loss) on investment securities, net |
|
134 |
|
|
(692 |
) |
|
|
(243 |
) |
|
|
— |
|
|
1,162 |
Gain on
sales of loans and leases held-for-sale |
|
289 |
|
|
327 |
|
|
|
535 |
|
|
|
722 |
|
|
299 |
Other |
|
1,526 |
|
|
1,956 |
|
|
|
1,520 |
|
|
|
1,283 |
|
|
1,088 |
Total
non-interest income |
|
6,630 |
|
|
6,461 |
|
|
|
7,069 |
|
|
|
5,526 |
|
|
6,168 |
Non-interest
expense: |
|
|
|
|
|
|
|
|
|
Compensation and employee benefits |
|
23,743 |
|
|
24,413 |
|
|
|
22,338 |
|
|
|
22,565 |
|
|
22,314 |
Occupancy |
|
3,947 |
|
|
3,240 |
|
|
|
3,913 |
|
|
|
3,879 |
|
|
3,959 |
Equipment
and data processing |
|
4,661 |
|
|
4,626 |
|
|
|
4,601 |
|
|
|
4,368 |
|
|
4,618 |
Professional services |
|
1,076 |
|
|
1,130 |
|
|
|
1,075 |
|
|
|
1,055 |
|
|
1,144 |
FDIC
insurance |
|
593 |
|
|
727 |
|
|
|
846 |
|
|
|
514 |
|
|
635 |
Advertising and marketing |
|
1,069 |
|
|
773 |
|
|
|
1,068 |
|
|
|
1,118 |
|
|
1,057 |
Amortization of identified intangible assets |
|
402 |
|
|
537 |
|
|
|
537 |
|
|
|
539 |
|
|
467 |
Merger
and acquisition expense |
|
— |
|
|
526 |
|
|
|
22 |
|
|
|
334 |
|
|
2,905 |
Other |
|
3,380 |
|
|
4,310 |
|
|
|
2,910 |
|
|
|
3,330 |
|
|
2,839 |
Total
non-interest expense |
|
38,871 |
|
|
40,282 |
|
|
|
37,310 |
|
|
|
37,702 |
|
|
39,938 |
Income before provision
for income taxes |
|
29,405 |
|
|
29,215 |
|
|
|
29,374 |
|
|
|
29,071 |
|
|
25,080 |
Provision for income
taxes |
|
6,895 |
|
|
7,055 |
|
|
|
6,140 |
|
|
|
7,342 |
|
|
5,652 |
Net
income before noncontrolling interest in subsidiary |
|
22,510 |
|
|
22,160 |
|
|
|
23,234 |
|
|
|
21,729 |
|
|
19,428 |
Less net income
attributable to noncontrolling interest in subsidiary |
|
43 |
|
|
1,022 |
|
|
|
774 |
|
|
|
898 |
|
|
795 |
Net
income attributable to Brookline Bancorp, Inc. |
$ |
22,467 |
|
$ |
21,138 |
|
|
$ |
22,460 |
|
|
$ |
20,831 |
|
$ |
18,633 |
Earnings per common
share: |
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.28 |
|
$ |
0.26 |
|
|
$ |
0.28 |
|
|
$ |
0.26 |
|
$ |
0.24 |
Diluted |
$ |
0.28 |
|
$ |
0.26 |
|
|
$ |
0.28 |
|
|
$ |
0.26 |
|
$ |
0.24 |
Weighted
average common shares outstanding during the period: |
|
|
|
|
|
|
|
|
Basic |
|
79,658,583 |
|
|
80,258,456 |
|
|
|
80,315,050 |
|
|
|
80,184,977 |
|
|
77,879,593 |
Diluted |
|
79,843,578 |
|
|
80,407,525 |
|
|
|
80,515,467 |
|
|
|
80,505,614 |
|
|
78,167,800 |
Dividends paid per
common share |
$ |
0.105 |
|
$ |
0.105 |
|
|
$ |
0.100 |
|
|
$ |
0.100 |
|
$ |
0.090 |
|
|
|
|
|
|
|
|
|
|
BROOKLINE BANCORP, INC. AND SUBSIDIARIES |
Asset Quality Analysis (Unaudited) |
|
|
At and for the Three Months
Ended |
|
March 31,2019 |
|
December 31,2018 |
|
September
30,2018 |
|
June 30,2018 |
|
March 31,2018 |
|
|
|
(Dollars in Thousands) |
NONPERFORMING
ASSETS: |
|
|
|
|
|
|
|
|
|
Loans and leases
accounted for on a nonaccrual basis: |
|
|
|
|
|
|
|
|
|
Commercial real estate
mortgage |
$ |
2,889 |
|
|
$ |
3,928 |
|
|
$ |
3,369 |
|
|
$ |
3,774 |
|
|
$ |
4,080 |
|
Multi-family mortgage |
|
101 |
|
|
|
330 |
|
|
|
357 |
|
|
|
568 |
|
|
|
588 |
|
Construction |
|
396 |
|
|
|
396 |
|
|
|
640 |
|
|
|
640 |
|
|
|
860 |
|
Total
commercial real estate loans |
|
3,386 |
|
|
|
4,654 |
|
|
|
4,366 |
|
|
|
4,982 |
|
|
|
5,528 |
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
5,728 |
|
|
|
6,621 |
|
|
|
7,862 |
|
|
|
9,487 |
|
|
|
11,150 |
|
Equipment
financing |
|
10,253 |
|
|
|
9,500 |
|
|
|
9,659 |
|
|
|
8,825 |
|
|
|
6,661 |
|
Condominium association |
|
224 |
|
|
|
265 |
|
|
|
295 |
|
|
|
— |
|
|
|
— |
|
Total
commercial loans and leases |
|
16,205 |
|
|
|
16,386 |
|
|
|
17,816 |
|
|
|
18,312 |
|
|
|
17,811 |
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
|
2,188 |
|
|
|
2,132 |
|
|
|
2,538 |
|
|
|
1,571 |
|
|
|
1,962 |
|
Home
equity |
|
1,022 |
|
|
|
908 |
|
|
|
1,053 |
|
|
|
923 |
|
|
|
925 |
|
Other
consumer |
|
8 |
|
|
|
17 |
|
|
|
11 |
|
|
|
5 |
|
|
|
53 |
|
Total
consumer loans |
|
3,218 |
|
|
|
3,057 |
|
|
|
3,602 |
|
|
|
2,499 |
|
|
|
2,940 |
|
|
|
|
|
|
|
|
|
|
|
Total
nonaccrual loans and leases |
|
22,809 |
|
|
|
24,097 |
|
|
|
25,784 |
|
|
|
25,793 |
|
|
|
26,279 |
|
|
|
|
|
|
|
|
|
|
|
Other real estate
owned |
|
3,054 |
|
|
|
3,054 |
|
|
|
3,136 |
|
|
|
3,436 |
|
|
|
3,235 |
|
Other repossessed
assets |
|
858 |
|
|
|
965 |
|
|
|
798 |
|
|
|
916 |
|
|
|
728 |
|
Total
nonperforming assets |
$ |
26,721 |
|
|
$ |
28,116 |
|
|
$ |
29,718 |
|
|
$ |
30,145 |
|
|
$ |
30,242 |
|
|
|
|
|
|
|
|
|
|
|
Loans and leases past
due greater than 90 days and still accruing |
$ |
16,800 |
|
|
$ |
13,482 |
|
|
$ |
14,954 |
|
|
$ |
12,340 |
|
|
$ |
5,240 |
|
|
|
|
|
|
|
|
|
|
|
Troubled debt
restructurings on accrual |
|
28,543 |
|
|
|
12,257 |
|
|
|
12,657 |
|
|
|
12,911 |
|
|
|
14,294 |
|
Troubled debt
restructurings on nonaccrual |
|
7,597 |
|
|
|
8,684 |
|
|
|
8,779 |
|
|
|
9,391 |
|
|
|
8,610 |
|
Total
troubled debt restructurings |
$ |
36,140 |
|
|
$ |
20,941 |
|
|
$ |
21,436 |
|
|
$ |
22,302 |
|
|
$ |
22,904 |
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans and
leases as a percentage of total loans and leases |
|
0.36 |
% |
|
|
0.38 |
% |
|
|
0.41 |
% |
|
|
0.42 |
% |
|
|
0.43 |
% |
Nonperforming assets as
a percentage of total assets |
|
0.36 |
% |
|
|
0.38 |
% |
|
|
0.41 |
% |
|
|
0.41 |
% |
|
|
0.42 |
% |
|
|
|
|
|
|
|
|
|
|
PROVISION AND ALLOWANCE FOR LOAN AND LEASE
LOSSES: |
|
|
|
|
|
|
Allowance for loan and
lease losses at beginning of period |
$ |
58,692 |
|
|
$ |
59,997 |
|
|
$ |
57,981 |
|
|
$ |
58,714 |
|
|
$ |
58,592 |
|
Charge-offs |
|
(2,542 |
) |
|
|
(1,604 |
) |
|
|
(1,227 |
) |
|
|
(3,605 |
) |
|
|
(792 |
) |
Recoveries |
|
441 |
|
|
|
352 |
|
|
|
663 |
|
|
|
1,275 |
|
|
|
287 |
|
Net
charge-offs |
|
(2,101 |
) |
|
|
(1,252 |
) |
|
|
(564 |
) |
|
|
(2,330 |
) |
|
|
(505 |
) |
Provision
for loan and lease losses |
|
1,450 |
|
|
|
(53 |
) |
|
|
2,580 |
|
|
|
1,597 |
|
|
|
627 |
|
Allowance
for loan and lease losses at end of period |
$ |
58,041 |
|
|
$ |
58,692 |
|
|
$ |
59,997 |
|
|
$ |
57,981 |
|
|
$ |
58,714 |
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan and
lease losses as a percentage of total loans and leases |
|
0.91 |
% |
|
|
0.93 |
% |
|
|
0.96 |
% |
|
|
0.94 |
% |
|
|
0.96 |
% |
Allowance for loan and
lease losses related to originated loans and leases as a percentage
of originated loans and leases (non-GAAP) |
|
0.93 |
% |
|
|
0.96 |
% |
|
|
1.00 |
% |
|
|
0.98 |
% |
|
|
1.03 |
% |
|
|
|
|
|
|
|
|
|
|
NET
CHARGE-OFFS: |
|
|
|
|
|
|
|
|
|
Commercial real estate
loans |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
100 |
|
|
$ |
3 |
|
Commercial loans and
leases |
|
2,124 |
|
|
|
883 |
|
|
|
579 |
|
|
|
2,304 |
|
|
|
532 |
|
Consumer loans |
|
(23 |
) |
|
|
369 |
|
|
|
(15 |
) |
|
|
(74 |
) |
|
|
(30 |
) |
Total net
charge-offs |
$ |
2,101 |
|
|
$ |
1,252 |
|
|
$ |
564 |
|
|
$ |
2,330 |
|
|
$ |
505 |
|
|
|
|
|
|
|
|
|
|
|
Net loan and lease
charge-offs as a percentage of average loans and leases
(annualized) |
|
0.13 |
% |
|
|
0.08 |
% |
|
|
0.04 |
% |
|
|
0.15 |
% |
|
|
0.03 |
% |
|
|
|
|
|
|
|
|
|
|
BROOKLINE BANCORP, INC. AND SUBSIDIARIES |
Average Yields / Costs (Unaudited) |
|
|
Three Months Ended |
|
March 31, 2019 |
|
December 31, 2018 |
|
March 31, 2018 |
|
Average Balance |
|
Interest (1) |
|
AverageYield/Cost |
|
Average Balance |
|
Interest (1) |
|
AverageYield/Cost |
|
Average Balance |
|
Interest (1) |
|
AverageYield/Cost |
|
|
|
(Dollars in Thousands) |
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt securities (2) |
$ |
608,194 |
|
|
$ |
3,289 |
|
2.16 |
% |
|
$ |
637,803 |
|
|
$ |
3,542 |
|
2.22 |
% |
|
$ |
647,501 |
|
|
$ |
3,377 |
|
2.09 |
% |
Marketable and restricted equity securities (2) |
|
60,389 |
|
|
|
920 |
|
6.10 |
% |
|
|
69,374 |
|
|
|
1,017 |
|
5.87 |
% |
|
|
64,127 |
|
|
|
923 |
|
5.76 |
% |
Short-term investments |
|
33,034 |
|
|
|
267 |
|
3.23 |
% |
|
|
50,728 |
|
|
|
256 |
|
2.02 |
% |
|
|
30,664 |
|
|
|
120 |
|
1.57 |
% |
Total
investments |
|
701,617 |
|
|
|
4,476 |
|
2.55 |
% |
|
|
757,905 |
|
|
|
4,815 |
|
2.54 |
% |
|
|
742,292 |
|
|
|
4,420 |
|
2.38 |
% |
Loans and
Leases: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate loans (3) |
|
3,376,576 |
|
|
|
40,019 |
|
4.74 |
% |
|
|
3,310,185 |
|
|
|
39,014 |
|
4.61 |
% |
|
|
3,116,690 |
|
|
|
33,429 |
|
4.29 |
% |
Commercial loans (3) |
|
792,695 |
|
|
|
9,603 |
|
4.85 |
% |
|
|
825,582 |
|
|
|
10,007 |
|
4.75 |
% |
|
|
785,936 |
|
|
|
8,424 |
|
4.29 |
% |
Equipment
financing (3) |
|
988,193 |
|
|
|
17,985 |
|
7.28 |
% |
|
|
959,706 |
|
|
|
17,145 |
|
7.15 |
% |
|
|
875,304 |
|
|
|
14,864 |
|
6.79 |
% |
Residential mortgage loans (3) |
|
778,325 |
|
|
|
8,123 |
|
4.17 |
% |
|
|
763,775 |
|
|
|
7,840 |
|
4.11 |
% |
|
|
704,666 |
|
|
|
6,733 |
|
3.82 |
% |
Other
consumer loans (3) |
|
408,177 |
|
|
|
5,051 |
|
5.01 |
% |
|
|
404,747 |
|
|
|
4,883 |
|
4.78 |
% |
|
|
382,194 |
|
|
|
3,941 |
|
4.18 |
% |
Total
loans and leases |
|
6,343,966 |
|
|
|
80,781 |
|
5.09 |
% |
|
|
6,263,995 |
|
|
|
78,889 |
|
5.04 |
% |
|
|
5,864,790 |
|
|
|
67,391 |
|
4.60 |
% |
Total
interest-earning assets |
|
7,045,583 |
|
|
|
85,257 |
|
4.84 |
% |
|
|
7,021,900 |
|
|
|
83,704 |
|
4.77 |
% |
|
|
6,607,082 |
|
|
|
71,811 |
|
4.35 |
% |
Allowance for loan and
lease losses |
|
(58,749 |
) |
|
|
|
|
|
|
(59,806 |
) |
|
|
|
|
|
|
(58,986 |
) |
|
|
|
|
Non-interest-earning
assets |
|
447,204 |
|
|
|
|
|
|
|
420,837 |
|
|
|
|
|
|
|
379,213 |
|
|
|
|
|
Total
assets |
$ |
7,434,038 |
|
|
|
|
|
|
$ |
7,382,931 |
|
|
|
|
|
|
$ |
6,927,309 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW
accounts |
$ |
334,167 |
|
|
|
142 |
|
0.17 |
% |
|
$ |
333,592 |
|
|
|
88 |
|
0.10 |
% |
|
$ |
335,990 |
|
|
|
58 |
|
0.07 |
% |
Savings
accounts |
|
626,414 |
|
|
|
597 |
|
0.39 |
% |
|
|
616,766 |
|
|
|
526 |
|
0.34 |
% |
|
|
649,224 |
|
|
|
401 |
|
0.25 |
% |
Money
market accounts |
|
1,676,199 |
|
|
|
5,275 |
|
1.28 |
% |
|
|
1,647,346 |
|
|
|
4,914 |
|
1.18 |
% |
|
|
1,772,362 |
|
|
|
2,558 |
|
0.59 |
% |
Certificates of deposit |
|
1,844,511 |
|
|
|
9,934 |
|
2.18 |
% |
|
|
1,701,254 |
|
|
|
8,216 |
|
1.92 |
% |
|
|
1,247,049 |
|
|
|
4,082 |
|
1.33 |
% |
Total
interest-bearing deposits |
|
4,481,291 |
|
|
|
15,948 |
|
1.44 |
% |
|
|
4,298,958 |
|
|
|
13,744 |
|
1.27 |
% |
|
|
4,004,625 |
|
|
|
7,099 |
|
0.72 |
% |
Borrowings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advances
from the FHLBB |
|
755,542 |
|
|
|
4,610 |
|
2.44 |
% |
|
|
903,342 |
|
|
|
5,227 |
|
2.26 |
% |
|
|
956,298 |
|
|
|
3,748 |
|
1.57 |
% |
Subordinated debentures and notes |
|
83,451 |
|
|
|
1,308 |
|
6.27 |
% |
|
|
83,410 |
|
|
|
1,302 |
|
6.24 |
% |
|
|
83,289 |
|
|
|
1,282 |
|
6.16 |
% |
Other
borrowed funds |
|
88,600 |
|
|
|
221 |
|
1.01 |
% |
|
|
50,829 |
|
|
|
112 |
|
0.87 |
% |
|
|
36,147 |
|
|
|
19 |
|
0.21 |
% |
Total
borrowings |
|
927,593 |
|
|
|
6,139 |
|
2.65 |
% |
|
|
1,037,581 |
|
|
|
6,641 |
|
2.50 |
% |
|
|
1,075,734 |
|
|
|
5,049 |
|
1.88 |
% |
Total
interest-bearing liabilities |
|
5,408,884 |
|
|
|
22,087 |
|
1.66 |
% |
|
|
5,336,539 |
|
|
|
20,385 |
|
1.52 |
% |
|
|
5,080,359 |
|
|
|
12,148 |
|
0.97 |
% |
Non-interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
checking accounts |
|
1,026,970 |
|
|
|
|
|
|
|
1,028,086 |
|
|
|
|
|
|
|
931,685 |
|
|
|
|
|
Other
non-interest-bearing liabilities |
|
111,174 |
|
|
|
|
|
|
|
109,261 |
|
|
|
|
|
|
|
77,169 |
|
|
|
|
|
Total
liabilities |
|
6,547,028 |
|
|
|
|
|
|
|
6,473,886 |
|
|
|
|
|
|
|
6,089,213 |
|
|
|
|
|
Brookline Bancorp, Inc.
stockholders’ equity |
|
886,639 |
|
|
|
|
|
|
|
899,244 |
|
|
|
|
|
|
|
829,598 |
|
|
|
|
|
Noncontrolling interest
in subsidiary |
|
371 |
|
|
|
|
|
|
|
9,801 |
|
|
|
|
|
|
|
8,498 |
|
|
|
|
|
Total
liabilities and equity |
$ |
7,434,038 |
|
|
|
|
|
|
$ |
7,382,931 |
|
|
|
|
|
|
$ |
6,927,309 |
|
|
|
|
|
Net interest income
(tax-equivalent basis) /Interest-rate spread (4) |
|
|
|
63,170 |
|
3.18 |
% |
|
|
|
|
63,319 |
|
3.25 |
% |
|
|
|
|
59,663 |
|
3.38 |
% |
Less adjustment of
tax-exempt income |
|
|
|
171 |
|
|
|
|
|
|
160 |
|
|
|
|
|
|
172 |
|
|
Net interest
income |
|
|
$ |
62,999 |
|
|
|
|
|
$ |
63,159 |
|
|
|
|
|
$ |
59,491 |
|
|
Net interest margin
(5) |
|
|
|
|
3.64 |
% |
|
|
|
|
|
3.58 |
% |
|
|
|
|
|
3.66 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Tax-exempt income on debt securities, equity securities and revenue
bonds included in commercial real estate loans is included on a
tax-equivalent basis. |
(2)
Average balances include unrealized gains (losses) on investment
securities. Dividend payments may not be consistent and average
yield on equity securities may vary from month to month. |
(3) Loans
on nonaccrual status are included in the average balances. |
(4)
Interest rate spread represents the difference between the yield on
interest-earning assets and the cost of interest-bearing
liabilities. |
(5) Net
interest margin represents net interest income (tax-equivalent
basis) divided by average interest-earning assets on an
actual/actual basis. |
|
BROOKLINE BANCORP, INC. AND SUBSIDIARIES |
Non-GAAP Financial Information
(Unaudited) |
|
|
|
|
|
At and for the Three Months
Ended March 31, |
|
|
|
|
|
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
Reconciliation Table - Non-GAAP Financial
Information |
|
|
|
(Dollars in Thousands Except Share Data) |
|
|
|
|
|
|
|
Net income
attributable to Brookline Bancorp, Inc. |
|
|
|
|
|
$ |
22,467 |
|
|
$ |
18,633 |
|
Less: |
|
|
|
|
|
|
|
|
|
Security gains (after-tax) |
|
|
|
|
|
|
103 |
|
|
|
883 |
|
Add: |
|
|
|
|
|
|
|
|
|
Merger and
acquisition-related expenses (after-tax) |
|
|
|
|
|
|
— |
|
|
|
2,208 |
|
Operating earnings |
|
|
|
|
|
$ |
22,364 |
|
|
$ |
19,958 |
|
|
|
|
|
|
|
|
|
Operating earnings per
common share: |
|
|
|
|
|
|
|
Basic |
|
|
|
|
|
|
$ |
0.28 |
|
|
$ |
0.26 |
|
Diluted |
|
|
|
|
|
|
|
0.28 |
|
|
|
0.26 |
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding during the period: |
|
|
|
|
|
|
Basic |
|
|
|
|
|
|
|
79,658,583 |
|
|
|
77,879,593 |
|
Diluted |
|
|
|
|
|
|
|
79,843,578 |
|
|
|
78,167,800 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets * |
|
|
|
|
|
|
1.21 |
% |
|
|
1.08 |
% |
Less: |
|
|
|
|
|
|
|
|
|
Security gains
(after-tax) * |
|
|
|
|
|
|
0.01 |
% |
|
|
0.05 |
% |
Add: |
|
|
|
|
|
|
|
|
|
Merger and acquisition-related expenses (after-tax) * |
|
|
|
|
|
|
— |
% |
|
|
0.12 |
% |
Operating return on average
assets * |
|
|
|
|
|
|
1.20 |
% |
|
|
1.15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible assets * |
|
|
|
|
|
|
1.24 |
% |
|
|
1.10 |
% |
Less: |
|
|
|
|
|
|
|
|
|
Security gains
(after-tax) * |
|
|
|
|
|
|
0.01 |
% |
|
|
0.05 |
% |
Add: |
|
|
|
|
|
|
|
|
|
Merger and acquisition-related expenses (after-tax) * |
|
|
|
|
|
|
— |
% |
|
|
0.13 |
% |
Operating return on average
tangible assets * |
|
|
|
|
|
|
1.23 |
% |
|
|
1.18 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
stockholders' equity * |
|
|
|
|
|
|
10.14 |
% |
|
|
8.98 |
% |
Less: |
|
|
|
|
|
|
|
|
|
Security gains
(after-tax) * |
|
|
|
|
|
|
0.05 |
% |
|
|
0.43 |
% |
Add: |
|
|
|
|
|
|
|
|
|
Merger and acquisition-related expenses (after-tax) * |
|
|
|
|
|
|
— |
% |
|
|
1.07 |
% |
Operating return on average
stockholders' equity * |
|
|
|
|
|
|
10.09 |
% |
|
|
9.62 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible stockholders' equity * |
|
|
|
|
|
|
12.48 |
% |
|
|
11.01 |
% |
Less: |
|
|
|
|
|
|
|
|
|
Security gains
(after-tax) * |
|
|
|
|
|
|
0.06 |
% |
|
|
0.52 |
% |
Add: |
|
|
|
|
|
|
|
|
|
Merger and acquisition-related expenses (after-tax) * |
|
|
|
|
|
|
— |
% |
|
|
1.30 |
% |
Operating return on average
tangible stockholders' equity * |
|
|
|
|
|
|
12.42 |
% |
|
|
11.79 |
% |
|
|
|
|
|
|
|
|
|
* Ratios at and for
the three and nine months ended are annualized. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At and for the Three Months
Ended |
|
March 31, 2019 |
|
December 31,
2018 |
|
September 30,
2018 |
|
June 30, 2018 |
|
March 31, 2018 |
|
|
|
(Dollars in Thousands) |
|
|
|
|
|
|
|
|
|
|
Net income, as
reported |
$ |
22,467 |
|
|
$ |
21,138 |
|
|
$ |
22,460 |
|
|
$ |
20,831 |
|
|
$ |
18,633 |
|
|
|
|
|
|
|
|
|
|
|
Average total assets |
$ |
7,434,038 |
|
|
$ |
7,382,931 |
|
|
$ |
7,302,413 |
|
|
$ |
7,273,793 |
|
|
$ |
6,927,309 |
|
Less: Average goodwill and average
identified intangible assets, net |
|
166,327 |
|
|
|
166,777 |
|
|
|
167,313 |
|
|
|
168,185 |
|
|
|
152,377 |
|
Average tangible assets |
$ |
7,267,711 |
|
|
$ |
7,216,154 |
|
|
$ |
7,135,100 |
|
|
$ |
7,105,608 |
|
|
$ |
6,774,932 |
|
|
|
|
|
|
|
|
|
|
|
Return on average tangible assets
(annualized) |
|
1.24 |
% |
|
|
1.17 |
% |
|
|
1.26 |
% |
|
|
1.17 |
% |
|
|
1.10 |
% |
|
|
|
|
|
|
|
|
|
|
Average total stockholders’
equity |
$ |
886,639 |
|
|
$ |
899,244 |
|
|
$ |
889,259 |
|
|
$ |
874,513 |
|
|
$ |
829,598 |
|
Less: Average goodwill and average
identified intangible assets, net |
|
166,327 |
|
|
|
166,777 |
|
|
|
167,313 |
|
|
|
168,185 |
|
|
|
152,377 |
|
Average tangible stockholders’
equity |
$ |
720,312 |
|
|
$ |
732,467 |
|
|
$ |
721,946 |
|
|
$ |
706,328 |
|
|
$ |
677,221 |
|
|
|
|
|
|
|
|
|
|
|
Return on average tangible stockholders’
equity (annualized) |
|
12.48 |
% |
|
|
11.54 |
% |
|
|
12.44 |
% |
|
|
11.80 |
% |
|
|
11.01 |
% |
|
|
|
|
|
|
|
|
|
|
Brookline Bancorp, Inc.
stockholders’ equity |
$ |
900,572 |
|
|
$ |
900,140 |
|
|
$ |
890,368 |
|
|
$ |
877,283 |
|
|
$ |
865,777 |
|
Less: |
|
|
|
|
|
|
|
|
|
Goodwill |
|
160,427 |
|
|
|
160,427 |
|
|
|
160,427 |
|
|
|
160,427 |
|
|
|
160,896 |
|
Identified
intangible assets, net |
|
5,684 |
|
|
|
6,086 |
|
|
|
6,623 |
|
|
|
7,160 |
|
|
|
7,697 |
|
Tangible stockholders'
equity |
$ |
734,461 |
|
|
$ |
733,627 |
|
|
$ |
723,318 |
|
|
$ |
709,696 |
|
|
$ |
697,184 |
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
7,519,130 |
|
|
$ |
7,392,805 |
|
|
$ |
7,320,596 |
|
|
$ |
7,285,710 |
|
|
$ |
7,248,114 |
|
Less: |
|
|
|
|
|
|
|
|
|
Goodwill |
|
160,427 |
|
|
|
160,427 |
|
|
|
160,427 |
|
|
|
160,427 |
|
|
|
160,896 |
|
Identified
intangible assets, net |
|
5,684 |
|
|
|
6,086 |
|
|
|
6,623 |
|
|
|
7,160 |
|
|
|
7,697 |
|
Tangible assets |
$ |
7,353,019 |
|
|
$ |
7,226,292 |
|
|
$ |
7,153,546 |
|
|
$ |
7,118,123 |
|
|
$ |
7,079,521 |
|
|
|
|
|
|
|
|
|
|
|
Tangible stockholders’ equity to tangible
assets |
|
9.99 |
% |
|
|
10.15 |
% |
|
|
10.11 |
% |
|
|
9.97 |
% |
|
|
9.85 |
% |
|
|
|
|
|
|
|
|
|
|
Tangible stockholders' equity |
$ |
734,461 |
|
|
$ |
733,627 |
|
|
$ |
723,318 |
|
|
$ |
709,696 |
|
|
$ |
697,184 |
|
|
|
|
|
|
|
|
|
|
|
Number of common shares
issued |
|
85,177,172 |
|
|
|
85,177,172 |
|
|
|
85,177,172 |
|
|
|
85,177,172 |
|
|
|
85,177,172 |
|
Less: |
|
|
|
|
|
|
|
|
|
Treasury shares |
|
5,020,025 |
|
|
|
5,020,025 |
|
|
|
4,291,317 |
|
|
|
4,409,501 |
|
|
|
4,401,333 |
|
Unallocated ESOP shares |
|
104,079 |
|
|
|
109,950 |
|
|
|
118,050 |
|
|
|
126,144 |
|
|
|
134,238 |
|
Unvested restricted shares |
|
390,636 |
|
|
|
393,636 |
|
|
|
398,094 |
|
|
|
455,283 |
|
|
|
455,283 |
|
Number of common shares
outstanding |
|
79,662,432 |
|
|
|
79,653,561 |
|
|
|
80,369,711 |
|
|
|
80,186,244 |
|
|
|
80,186,318 |
|
|
|
|
|
|
|
|
|
|
|
Tangible book value per common
share |
$ |
9.22 |
|
|
$ |
9.21 |
|
|
$ |
9.00 |
|
|
$ |
8.85 |
|
|
$ |
8.69 |
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan and lease
losses |
$ |
58,041 |
|
|
$ |
58,692 |
|
|
$ |
59,997 |
|
|
$ |
57,981 |
|
|
$ |
58,714 |
|
Less: |
|
|
|
|
|
|
|
|
|
Allowance for acquired loans and
leases losses |
|
1,795 |
|
|
|
1,814 |
|
|
|
1,817 |
|
|
|
1,961 |
|
|
|
910 |
|
Allowance for originated loan and
lease losses |
$ |
56,246 |
|
|
$ |
56,878 |
|
|
$ |
58,180 |
|
|
$ |
56,020 |
|
|
$ |
57,804 |
|
|
|
|
|
|
|
|
|
|
|
Total loans and leases |
$ |
6,388,197 |
|
|
$ |
6,303,516 |
|
|
$ |
6,227,707 |
|
|
$ |
6,171,274 |
|
|
$ |
6,114,461 |
|
Less: |
|
|
|
|
|
|
|
|
|
Total acquired loans and
leases |
|
370,177 |
|
|
|
394,407 |
|
|
|
426,865 |
|
|
|
460,142 |
|
|
|
482,237 |
|
Total
originated loans and leases |
$ |
6,018,020 |
|
|
$ |
5,909,109 |
|
|
$ |
5,800,842 |
|
|
$ |
5,711,132 |
|
|
$ |
5,632,224 |
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan and lease losses related to originated
loans and leases as a percentage of originated
loans and leases |
|
0.93 |
% |
|
|
0.96 |
% |
|
|
1.00 |
% |
|
|
0.98 |
% |
|
|
1.03 |
% |
|
|
|
|
|
|
|
|
|
|
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