Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today
announced net income of $26.7 million, or $0.34 per basic and
diluted share, for the fourth quarter of 2020, compared to $18.7
million, or $0.24 per basic and diluted share, for the third
quarter of 2020, and $22.2 million, or $0.28 per basic and diluted
share, for the fourth quarter of 2019.
For the year ended December 31, 2020, the
Company reported net income of $47.6 million, or $0.60 per basic
and diluted share. This compared to $87.7 million, or $1.10 per
basic and diluted share, for the year ended December 31,
2019.
Paul Perrault, President and Chief Executive
Officer, commented on the Company’s performance in 2020, “This past
year was challenging in many respects, and I would like to
recognize our employees for their hard work. Given the challenges
of this past year, I am very pleased with our financial performance
and this quarter’s earnings report. We are cautiously optimistic
and think that we are well positioned as we look forward to what we
hope is a more positive environment in 2021, but remain diligent
and prudent as we continue to navigate our way through these
challenging times.”
On December 27, 2020, President Trump signed the
Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues
Act (the “Economic Aid Act”) which, among other items provides for
a third round of Paycheck Protection Program (“PPP”) loans. The
Company’s banks are participating in the PPP program and as of
January 27, 2021, the Company has not funded any third round PPP
loans. In the first two rounds of PPP funding, the Company funded
2,922 PPP loans totaling $581.7 million as of August 8, 2020 when
the program closed, of which $489.2 million remains outstanding,
net of deferred fees and costs at December 31, 2020.
BALANCE SHEET
Total assets at December 31, 2020 decreased
$57.8 million to $8.94 billion from $9.00 billion at
September 30, 2020, and increased $1.09 billion from $7.86
billion at December 31, 2019. At December 31, 2020, total
loans and leases were $7.27 billion, representing a decrease of
$126.8 million from September 30, 2020, primarily driven by
PPP Forgiveness funds received and decrease of $79.2 million in PPP
originations, and an increase of $531.7 million from
December 31, 2019, primarily driven by PPP loan activity.
Total investment securities at December 31,
2020 decreased $38.0 million to $746.3 million from $784.4 million
at September 30, 2020, and increased $157.0 million from
$589.4 million at December 31, 2019. Total cash and cash
equivalents at December 31, 2020 increased $117.6 million to
$434.9 million from $317.3 million at September 30, 2020, and
increased $357.1 million from $77.8 million at December 31,
2019. As of December 31, 2020, total investment securities and
total cash and cash equivalents represented 13.2 percent of total
assets as compared to 12.2 percent and 8.5 percent as of
September 30, 2020 and December 31, 2019,
respectively.
Total deposits at December 31, 2020
increased $118.2 million to $6.91 billion from $6.79 billion at
September 30, 2020 and increased $1.08 billion from $5.83
billion at December 31, 2019.
Total borrowed funds at December 31, 2020
decreased $184.8 million to $820.2 million from $1.01 billion at
September 30, 2020 and decreased $82.5 million from $902.7
million at December 31, 2019.
The ratio of stockholders’ equity to total
assets was 10.53 percent at December 31, 2020, as compared to
10.39 percent at September 30, 2020, and 12.04 percent at
December 31, 2019. The ratio of tangible stockholders’ equity
to tangible assets (non-GAAP) was 8.86 percent at December 31,
2020, as compared to 8.73 percent at September 30, 2020, and
10.15 percent at December 31, 2019. Tangible book value per
share (non-GAAP) increased $0.19 from $9.77 at September 30,
2020 to $9.96 at December 31, 2020, compared to $9.80 at
December 31, 2019.
NET INTEREST INCOME
Net interest income increased $2.3 million to
$68.2 million during the fourth quarter of 2020 from $65.9 million
for the quarter ended September 30, 2020. The net interest
margin increased 15 basis points to 3.23 percent for the three
months ended December 31, 2020 from 3.08 percent for the three
months ended September 30, 2020.
NON-INTEREST INCOME
Non-interest income for the quarter ended
December 31, 2020 decreased $0.7 million to $4.2 million from
$4.9 million for the quarter ended September 30, 2020. The
decrease was primarily driven by decreases of $0.6 million in gain
on sales of loans and leases and $0.4 million in loan level
derivative income, net, partially offset by increases of $0.2
million in loan fees and $0.1 million in other non-interest
income.
PROVISION FOR CREDIT LOSSES
On January 1, 2020, the Company adopted ASU
2016-13 "Financial Instruments-Credit Losses (Topic 326):
Measurement of Credit Losses on Financial Instruments", commonly
referred to as CECL.
The Company recorded a negative provision for
credit losses of $2.1 million for the quarter ended
December 31, 2020, compared to a provision of $4.5 million for
the quarter ended September 30, 2020. The negative provision
results from, exclusive of PPP loans, a reduction in the quarter of
both outstanding loans and commitments; the charge-off of a
specifically reserved loan; and a modestly improved economic
outlook in the models used for the ACL.
Total net charge-offs for the fourth quarter of
2020 were $4.4 million compared to $5.0 million in the third
quarter of 2020. The ratio of net loan and lease charge-offs to
average loans and leases on an annualized basis decreased to 24
basis points for the fourth quarter of 2020 from 27 basis points
for the third quarter of 2020.
The allowance for loan and lease losses
represented 1.57 percent of total loans and leases at
December 31, 2020, compared to 1.62 percent at
September 30, 2020, and 0.91 percent at December 31,
2019. Excluding PPP loans, the allowance for loan and lease losses
represents 1.69 percent coverage at December 31, 2020 compared
to 1.76 percent at September 30, 2020.
ASSET QUALITY
The ratio of total nonperforming loans and
leases to total loans and leases was 0.53 percent at
December 31, 2020 as compared to 0.51 percent at
September 30, 2020. Nonperforming loans and leases increased
$0.4 million to $38.4 million at December 31, 2020 from $38.0
million at September 30, 2020. The ratio of nonperforming
assets to total assets was 0.50 percent at December 31, 2020
as compared to 0.44 percent at September 30, 2020.
Nonperforming assets increased $5.6 million to $45.0 million at
December 31, 2020 from $39.4 million at September 30,
2020.
From March 1, 2020 through the earlier of
January 1, 2022 or 60 days after the termination date of the
national emergency declared by the President on March 13, 2020
concerning the COVID-19 outbreak (the “national emergency”), a
financial institution may elect to suspend the requirements under
accounting principles generally accepted in the U.S. for loan
modifications related to the COVID-19 pandemic that would otherwise
be categorized as a troubled debt restructured, including
impairment accounting. This troubled debt restructuring relief
applies for the term of the loan modification that occurs during
the applicable period for a loan that was not more than 30 days
past due as of December 31, 2019. Financial institutions are
required to maintain records of the volume of loans involved in
modifications to which troubled debt restructuring relief is
applicable. As of December 31, 2020, approximately 92 percent of
loans granted an initial loan payment deferral have returned to
payment status and 298 credits totaling $90 million or 1.2 percent
of total loans outstanding have been modified.
NON-INTEREST EXPENSE
Non-interest expense for the quarter ended
December 31, 2020 decreased $0.9 million to $40.0 million from
$40.9 million for the quarter ended September 30, 2020. The
decrease was primarily driven by decreases of $1.0 million in
compensation and employee benefits and $0.2 million in other
non-interest expense, partially offset by an increase of $0.3
million in FDIC insurance.
PROVISION FOR INCOME TAXES
The effective tax rate was 22.7 percent and 23.3
percent for the three and twelve months ended December 31,
2020, respectively.
RETURNS ON AVERAGE ASSETS AND AVERAGE
EQUITY
The annualized return on average assets
increased to 1.20 percent during the fourth quarter of 2020
compared to 0.83 percent for the third quarter of 2020; and was
0.55 percent for the year ended December 31, 2020, compared to
1.15 percent for the year ended December 31, 2019.
The annualized return on average tangible
stockholders' equity increased to 13.79 percent during the fourth
quarter of 2020 compared to 9.70 percent for the third quarter of
2020; and was 6.17 percent for the year ended December 31,
2020 compared to 11.67 percent for the year ended December 31,
2019.
DIVIDEND DECLARED
The Company’s Board approved a dividend of
$0.115 per share for the quarter ended December 31, 2020. The
dividend will be paid on February 26, 2021 to stockholders of
record on February 12, 2021.
STOCK REPURCHASE
On December 4, 2019, the Board of Directors (the
"Board") approved a stock repurchase program (the "Program")
authorizing management to repurchase up to $10.0 million of the
Company’s common stock over a period of twelve months commencing on
January 1, 2020. On March 9, 2020, the Board approved an increase
in the repurchase amount of $10.0 million bringing the total
authorized amount to $20.0 million. Effective March 24, 2020, the
Company suspended the Program. On October 28, 2020, the Board
authorized the resumption of the Program. As of December 31, 2020,
the Company has repurchased 1,715,730 shares at a weighted average
price of $11.66.
On January 27, 2021, the Board of Directors (the
“Board”) of the Company approved a stock repurchase program
authorizing management to repurchase up to $10.0 million of the
Company’s common stock commencing on February 1, 2021 and ending on
December 31, 2021.
CONFERENCE CALL
The Company will conduct a conference
call/webcast at 1:30 PM Eastern Daylight Time on Thursday, January
28, 2021 to discuss the results for the quarter, business
highlights and outlook. A copy of the Earnings Presentation is
available on the Company’s website, www.brooklinebancorp.com. To
listen to the call and view the Company’s Earnings Presentation,
please join the call via
https://services.choruscall.com/links/brkl210128.html. To listen to
the call without access to the slides, please dial 877-504-4120
(United States) or 412-902-6650 (international) and ask for the
Brookline Bancorp, Inc. call. A recording of the call will be
available for one week following the call on the Company’s website
under “Investor Relations” or by dialing 877-344-7529 (United
States) or 412-317-0088 (internationally) and entering the
passcode: 10151088.
ABOUT BROOKLINE BANCORP, INC.
Brookline Bancorp, Inc., a bank holding company
with $8.9 billion in assets and branch locations in Massachusetts
and Rhode Island, is headquartered in Boston, Massachusetts and
operates as the holding company for Brookline Bank and Bank Rhode
Island (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 and www.bankri.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. Statements contained in this press
release that do not describe historical or current facts are
forward-looking statements, including statements regard the
potential effects of COVID-19 on the Company’s business, credit
quality, financial condition, liquidity and results of operations.
Forward-looking statements made with regard to the potential
effects of COVID-19 on the Company’s business, financial condition,
credit quality, liquidity and results of operation may differ,
possibly materially, from what is included in this press release
due to factors and future developments that are uncertain and
beyond the scope of the Company’s control. These included, but are
not limited to, the length and extent of the economic contraction
as a result of the COVID-19 pandemic; continued deterioration in
employment levels, general business and economic conditions on a
national basis and in the local markets in which the Company and
its banking subsidiaries operate; changes in consumer behavior due
to changing political business and economic conditions or
legislative or regulatory initiatives; the possibility that future
credit losses may be higher than currently expected; reputational
risk relating to the Company’s participation in the Paycheck
Protection Program and other pandemic-related legislative and
regulatory initiatives and programs; and turbulence in capital and
debt markets. Forward-looking statements involve risks and
uncertainties which are difficult to predict. 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, 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.
INVESTOR RELATIONS:
Contact: Carl M. Carlson Brookline 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 |
At and for the Twelve Months Ended |
|
December 31, 2020 |
September 30, 2020 |
June 30, 2020 |
March 31, 2020 |
December 31, 2019 |
December 31, 2020 |
December 31, 2019 |
|
(Dollars In Thousands Except per Share Data) |
Earnings Data: |
|
|
|
|
|
|
|
Net interest income |
$ |
68,225 |
|
$ |
65,938 |
|
$ |
64,288 |
|
$ |
61,712 |
|
$ |
63,931 |
|
$ |
260,163 |
|
$ |
253,300 |
|
(Credit) provision for credit losses |
|
(2,103 |
) |
|
4,528 |
|
|
5,347 |
|
|
54,114 |
|
|
3,602 |
|
|
61,886 |
|
|
9,583 |
|
Non-interest income |
|
4,219 |
|
|
4,862 |
|
|
6,235 |
|
|
9,328 |
|
|
7,756 |
|
|
24,644 |
|
|
29,793 |
|
Non-interest expense |
|
40,038 |
|
|
40,947 |
|
|
39,109 |
|
|
40,748 |
|
|
38,815 |
|
|
160,844 |
|
|
157,481 |
|
Income (loss) before provision for income taxes |
|
34,509 |
|
|
25,325 |
|
|
26,067 |
|
|
(23,822 |
) |
|
29,270 |
|
|
62,077 |
|
|
116,029 |
|
Net income (loss) attributable to Brookline Bancorp, Inc. |
|
26,663 |
|
|
18,679 |
|
|
19,571 |
|
|
(17,276 |
) |
|
22,183 |
|
|
47,635 |
|
|
87,717 |
|
|
|
|
|
|
|
|
|
Performance Ratios: |
|
|
|
|
|
|
|
Net interest margin (1) |
|
3.23 |
% |
|
3.08 |
% |
|
3.09 |
% |
|
3.31 |
% |
|
3.43 |
% |
|
3.17 |
% |
|
3.51 |
% |
Interest-rate spread (1) |
|
3.03 |
% |
|
2.85 |
% |
|
2.75 |
% |
|
2.91 |
% |
|
3.05 |
% |
|
2.88 |
% |
|
3.10 |
% |
Return on average assets (annualized) |
|
1.20 |
% |
|
0.83 |
% |
|
0.88 |
% |
|
(0.87 |
)% |
|
1.13 |
% |
|
0.55 |
% |
|
1.15 |
% |
Return on average tangible assets (annualized) (non-GAAP) |
|
1.22 |
% |
|
0.84 |
% |
|
0.90 |
% |
|
(0.89 |
)% |
|
1.15 |
% |
|
0.56 |
% |
|
1.17 |
% |
Return on average stockholders' equity (annualized) |
|
11.38 |
% |
|
7.99 |
% |
|
8.45 |
% |
|
(7.30 |
)% |
|
9.42 |
% |
|
5.09 |
% |
|
9.56 |
% |
Return on average tangible stockholders' equity (annualized)
(non-GAAP) |
|
13.79 |
% |
|
9.70 |
% |
|
10.28 |
% |
|
(8.84 |
)% |
|
11.42 |
% |
|
6.17 |
% |
|
11.67 |
% |
Efficiency ratio (2) |
|
55.27 |
% |
|
57.83 |
% |
|
55.46 |
% |
|
57.36 |
% |
|
54.15 |
% |
|
56.47 |
% |
|
55.63 |
% |
|
|
|
|
|
|
|
|
Per
Common Share Data: |
|
|
|
|
|
|
|
Net income (loss) — Basic |
$ |
0.34 |
|
$ |
0.24 |
|
$ |
0.25 |
|
$ |
(0.22 |
) |
$ |
0.28 |
|
$ |
0.60 |
|
$ |
1.10 |
|
Net income (loss) — Diluted |
|
0.34 |
|
|
0.24 |
|
|
0.25 |
|
|
(0.22 |
) |
|
0.28 |
|
|
0.60 |
|
|
1.10 |
|
Cash dividends declared |
|
0.115 |
|
|
0.115 |
|
|
0.115 |
|
|
0.115 |
|
|
0.115 |
|
|
0.460 |
|
|
0.450 |
|
Book value per share (end of period) |
|
12.05 |
|
|
11.84 |
|
|
11.75 |
|
|
11.57 |
|
|
11.87 |
|
|
12.05 |
|
|
11.87 |
|
Tangible book value per share (end of period) (non-GAAP) |
|
9.96 |
|
|
9.77 |
|
|
9.67 |
|
|
9.49 |
|
|
9.80 |
|
|
9.96 |
|
|
9.80 |
|
Stock price (end of period) |
|
12.04 |
|
|
8.65 |
|
|
10.08 |
|
|
11.28 |
|
|
16.46 |
|
|
12.04 |
|
|
16.46 |
|
|
|
|
|
|
|
|
|
Balance Sheet: |
|
|
|
|
|
|
|
Total assets |
$ |
8,942,424 |
|
$ |
9,000,192 |
|
$ |
9,069,667 |
|
$ |
8,461,591 |
|
$ |
7,856,853 |
|
$ |
8,942,424 |
|
$ |
7,856,853 |
|
Total loans and leases |
|
7,269,553 |
|
|
7,396,358 |
|
|
7,407,697 |
|
|
6,822,527 |
|
|
6,737,816 |
|
|
7,269,553 |
|
|
6,737,816 |
|
Total deposits |
|
6,910,696 |
|
|
6,792,523 |
|
|
6,440,233 |
|
|
5,889,938 |
|
|
5,830,072 |
|
|
6,910,696 |
|
|
5,830,072 |
|
Brookline Bancorp, Inc. stockholders’ equity |
|
941,778 |
|
|
935,558 |
|
|
926,413 |
|
|
912,568 |
|
|
945,606 |
|
|
941,778 |
|
|
945,606 |
|
|
|
|
|
|
|
|
|
Asset Quality: |
|
|
|
|
|
|
|
Nonperforming assets |
$ |
44,963 |
|
$ |
39,365 |
|
$ |
42,754 |
|
$ |
41,122 |
|
$ |
22,092 |
|
$ |
44,963 |
|
$ |
22,092 |
|
Nonperforming assets as a percentage of total assets |
|
0.50 |
% |
|
0.44 |
% |
|
0.47 |
% |
|
0.49 |
% |
|
0.28 |
% |
|
0.50 |
% |
|
0.28 |
% |
Allowance for loan and lease losses |
$ |
114,379 |
|
$ |
119,971 |
|
$ |
119,553 |
|
$ |
113,181 |
|
$ |
61,082 |
|
$ |
114,379 |
|
$ |
61,082 |
|
Allowance for loan and lease losses as a percentage of total loans
and leases |
|
1.57 |
% |
|
1.62 |
% |
|
1.61 |
% |
|
1.66 |
% |
|
0.91 |
% |
|
1.57 |
% |
|
0.91 |
% |
Net loan and lease charge-offs |
$ |
4,381 |
|
$ |
4,963 |
|
$ |
1,383 |
|
$ |
2,234 |
|
$ |
1,622 |
|
$ |
12,961 |
|
$ |
7,171 |
|
Net loan and lease charge-offs as a percentage of average loans and
leases (annualized) |
|
0.24 |
% |
|
0.27 |
% |
|
0.08 |
% |
|
0.13 |
% |
|
0.10 |
% |
|
0.18 |
% |
|
0.11 |
% |
|
|
|
|
|
|
|
|
Capital Ratios: |
|
|
|
|
|
|
|
Stockholders’ equity to total assets |
|
10.53 |
% |
|
10.39 |
% |
|
10.21 |
% |
|
10.78 |
% |
|
12.04 |
% |
|
10.53 |
% |
|
12.04 |
% |
Tangible stockholders’ equity to tangible assets (non-GAAP) |
|
8.86 |
% |
|
8.73 |
% |
|
8.56 |
% |
|
9.02 |
% |
|
10.15 |
% |
|
8.86 |
% |
|
10.15 |
% |
|
|
|
|
|
|
|
|
(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) |
|
December 31, 2020 |
September 30, 2020 |
June 30, 2020 |
March 31, 2020 |
December 31, 2019 |
ASSETS |
(In Thousands Except Share Data) |
Cash and due from banks |
$ |
36,069 |
|
$ |
33,818 |
|
$ |
38,522 |
|
$ |
86,996 |
|
$ |
33,589 |
|
Short-term investments |
|
398,848 |
|
|
283,515 |
|
|
216,394 |
|
|
253,772 |
|
|
44,201 |
|
Total cash and cash equivalents |
|
434,917 |
|
|
317,333 |
|
|
254,916 |
|
|
340,768 |
|
|
77,790 |
|
Investment securities
available-for-sale |
|
745,822 |
|
|
783,867 |
|
|
854,505 |
|
|
761,539 |
|
|
498,995 |
|
Investment securities
held-to-maturity |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
86,780 |
|
Equity securities
held-for-trading |
|
526 |
|
|
525 |
|
|
1,992 |
|
|
2,558 |
|
|
3,581 |
|
Total investment securities |
|
746,348 |
|
|
784,392 |
|
|
856,497 |
|
|
764,097 |
|
|
589,356 |
|
Loans and leases: |
|
|
|
|
|
Commercial real estate loans |
|
3,823,826 |
|
|
3,835,372 |
|
|
3,837,703 |
|
|
3,762,158 |
|
|
3,669,222 |
|
Commercial loans and leases |
|
2,274,899 |
|
|
2,354,613 |
|
|
2,361,463 |
|
|
1,826,866 |
|
|
1,838,748 |
|
Consumer loans |
|
1,170,828 |
|
|
1,206,373 |
|
|
1,208,531 |
|
|
1,233,503 |
|
|
1,229,846 |
|
Total loans and leases |
|
7,269,553 |
|
|
7,396,358 |
|
|
7,407,697 |
|
|
6,822,527 |
|
|
6,737,816 |
|
Allowance for loan and lease
losses |
|
(114,379 |
) |
|
(119,971 |
) |
|
(119,553 |
) |
|
(113,181 |
) |
|
(61,082 |
) |
Net loans and leases |
|
7,155,174 |
|
|
7,276,387 |
|
|
7,288,144 |
|
|
6,709,346 |
|
|
6,676,734 |
|
Restricted equity securities |
|
49,786 |
|
|
61,715 |
|
|
71,638 |
|
|
68,472 |
|
|
53,818 |
|
Premises and equipment, net of
accumulated depreciation |
|
71,568 |
|
|
72,441 |
|
|
73,127 |
|
|
73,786 |
|
|
74,350 |
|
Right-of-use asset operating
leases |
|
24,143 |
|
|
23,492 |
|
|
24,343 |
|
|
24,789 |
|
|
24,876 |
|
Deferred tax asset |
|
40,129 |
|
|
42,269 |
|
|
42,683 |
|
|
38,141 |
|
|
25,017 |
|
Goodwill |
|
160,427 |
|
|
160,427 |
|
|
160,427 |
|
|
160,427 |
|
|
160,427 |
|
Identified intangible assets, net
of accumulated amortization |
|
3,152 |
|
|
3,464 |
|
|
3,775 |
|
|
4,087 |
|
|
4,423 |
|
Other real estate owned and
repossessed assets |
|
6,515 |
|
|
1,413 |
|
|
1,454 |
|
|
2,038 |
|
|
2,631 |
|
Other assets |
|
250,265 |
|
|
256,859 |
|
|
292,663 |
|
|
275,640 |
|
|
167,431 |
|
Total assets |
$ |
8,942,424 |
|
$ |
9,000,192 |
|
$ |
9,069,667 |
|
$ |
8,461,591 |
|
$ |
7,856,853 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
Deposits: |
|
|
|
|
|
Demand checking accounts |
$ |
1,592,205 |
|
$ |
1,550,267 |
|
$ |
1,603,037 |
|
$ |
1,175,329 |
|
$ |
1,141,578 |
|
NOW accounts |
|
513,948 |
|
|
459,902 |
|
|
417,622 |
|
|
361,854 |
|
|
371,380 |
|
Savings accounts |
|
701,659 |
|
|
716,630 |
|
|
657,758 |
|
|
653,026 |
|
|
613,467 |
|
Money market accounts |
|
2,018,977 |
|
|
1,878,258 |
|
|
1,809,868 |
|
|
1,676,092 |
|
|
1,682,005 |
|
Certificate of deposit accounts |
|
1,389,998 |
|
|
1,492,913 |
|
|
1,601,768 |
|
|
1,669,509 |
|
|
1,671,738 |
|
Brokered deposit accounts |
|
693,909 |
|
|
694,553 |
|
|
350,180 |
|
|
354,128 |
|
|
349,904 |
|
Total deposits |
|
6,910,696 |
|
|
6,792,523 |
|
|
6,440,233 |
|
|
5,889,938 |
|
|
5,830,072 |
|
Borrowed funds: |
|
|
|
|
|
Advances from the FHLBB |
|
648,849 |
|
|
841,169 |
|
|
1,267,570 |
|
|
1,137,431 |
|
|
758,469 |
|
Subordinated debentures and notes |
|
83,746 |
|
|
83,707 |
|
|
83,668 |
|
|
83,630 |
|
|
83,591 |
|
Other borrowed funds |
|
87,652 |
|
|
80,169 |
|
|
55,431 |
|
|
70,743 |
|
|
60,689 |
|
Total borrowed funds |
|
820,247 |
|
|
1,005,045 |
|
|
1,406,669 |
|
|
1,291,804 |
|
|
902,749 |
|
Operating lease liabilities |
|
24,143 |
|
|
23,492 |
|
|
24,343 |
|
|
24,789 |
|
|
24,876 |
|
Mortgagors’ escrow accounts |
|
5,901 |
|
|
6,429 |
|
|
6,467 |
|
|
7,441 |
|
|
7,232 |
|
Reserve for unfunded
credits |
|
13,071 |
|
|
13,964 |
|
|
14,816 |
|
|
17,222 |
|
|
1,880 |
|
Accrued expenses and other
liabilities |
|
226,588 |
|
|
223,181 |
|
|
250,726 |
|
|
317,829 |
|
|
144,438 |
|
Total liabilities |
|
8,000,646 |
|
|
8,064,634 |
|
|
8,143,254 |
|
|
7,549,023 |
|
|
6,911,247 |
|
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 |
|
737,178 |
|
|
736,294 |
|
|
738,155 |
|
|
737,422 |
|
|
736,601 |
|
Retained earnings, partially restricted |
|
264,892 |
|
|
247,336 |
|
|
237,808 |
|
|
227,359 |
|
|
265,376 |
|
Accumulated other comprehensive income |
|
16,490 |
|
|
18,782 |
|
|
19,538 |
|
|
16,947 |
|
|
2,283 |
|
Treasury stock, at cost; |
|
|
|
|
|
6,525,783 shares, 5,629,854 shares, 5,859,708 shares, 5,862,811
shares, and 5,003,127 shares, respectively |
|
(77,343 |
) |
|
(67,376 |
) |
|
(69,572 |
) |
|
(69,617 |
) |
|
(59,073 |
) |
Unallocated common stock held by the Employee Stock Ownership
Plan; |
|
|
|
|
|
51,114 shares, 58,227 shares, 65,334 shares, 72,441 shares, and
79,548 shares, respectively |
|
(291 |
) |
|
(330 |
) |
|
(368 |
) |
|
(395 |
) |
|
(433 |
) |
Total stockholders' equity |
|
941,778 |
|
|
935,558 |
|
|
926,413 |
|
|
912,568 |
|
|
945,606 |
|
Total liabilities and stockholders' equity |
$ |
8,942,424 |
|
$ |
9,000,192 |
|
$ |
9,069,667 |
|
$ |
8,461,591 |
|
$ |
7,856,853 |
|
|
|
|
|
|
|
BROOKLINE
BANCORP, INC. AND SUBSIDIARIES |
Consolidated
Statements of Income (Unaudited) |
|
Three Months Ended |
|
December 31, 2020 |
September 30, 2020 |
June 30, 2020 |
March 31, 2020 |
December 31, 2019 |
|
(In Thousands Except Share Data) |
Interest and
dividend income: |
|
|
|
|
|
Loans and leases |
$ |
76,583 |
|
$ |
76,240 |
$ |
77,416 |
$ |
79,559 |
|
$ |
83,309 |
Debt securities |
|
3,335 |
|
|
3,746 |
|
3,701 |
|
2,976 |
|
|
2,910 |
Marketable and restricted equity securities |
|
490 |
|
|
672 |
|
908 |
|
778 |
|
|
813 |
Short-term investments |
|
59 |
|
|
46 |
|
99 |
|
209 |
|
|
418 |
Total interest and dividend income |
|
80,467 |
|
|
80,704 |
|
82,124 |
|
83,522 |
|
|
87,450 |
Interest
expense: |
|
|
|
|
|
Deposits |
|
8,825 |
|
|
10,583 |
|
12,778 |
|
16,240 |
|
|
17,655 |
Borrowed funds |
|
3,417 |
|
|
4,183 |
|
5,058 |
|
5,570 |
|
|
5,864 |
Total interest expense |
|
12,242 |
|
|
14,766 |
|
17,836 |
|
21,810 |
|
|
23,519 |
Net interest
income |
|
68,225 |
|
|
65,938 |
|
64,288 |
|
61,712 |
|
|
63,931 |
(Credit)
provision for credit losses |
|
(2,103 |
) |
|
4,528 |
|
5,347 |
|
54,114 |
|
|
3,602 |
Net interest income after (credit) provision for credit losses |
|
70,328 |
|
|
61,410 |
|
58,941 |
|
7,598 |
|
|
60,329 |
Non-interest
income: |
|
|
|
|
|
Deposit fees |
|
2,358 |
|
|
2,305 |
|
1,929 |
|
2,458 |
|
|
2,710 |
Loan fees |
|
588 |
|
|
397 |
|
513 |
|
550 |
|
|
567 |
Loan level derivative income, net |
|
145 |
|
|
527 |
|
1,440 |
|
2,156 |
|
|
2,494 |
Gain on investment securities, net |
|
- |
|
|
54 |
|
586 |
|
1,330 |
|
|
133 |
Gain on sales of loans and leases held-for-sale |
|
67 |
|
|
632 |
|
299 |
|
120 |
|
|
309 |
Other |
|
1,061 |
|
|
947 |
|
1,468 |
|
2,714 |
|
|
1,543 |
Total non-interest income |
|
4,219 |
|
|
4,862 |
|
6,235 |
|
9,328 |
|
|
7,756 |
Non-interest
expense: |
|
|
|
|
|
Compensation and employee benefits |
|
25,054 |
|
|
26,092 |
|
24,619 |
|
25,219 |
|
|
23,987 |
Occupancy |
|
3,806 |
|
|
3,802 |
|
3,825 |
|
3,953 |
|
|
4,102 |
Equipment and data processing |
|
4,193 |
|
|
4,293 |
|
4,155 |
|
4,703 |
|
|
4,601 |
Professional services |
|
1,338 |
|
|
1,112 |
|
1,056 |
|
1,651 |
|
|
1,120 |
FDIC insurance |
|
1,630 |
|
|
1,363 |
|
858 |
|
378 |
|
|
53 |
Advertising and marketing |
|
1,010 |
|
|
1,024 |
|
1,017 |
|
1,075 |
|
|
828 |
Amortization of identified intangible assets |
|
312 |
|
|
312 |
|
311 |
|
336 |
|
|
420 |
Other |
|
2,695 |
|
|
2,949 |
|
3,268 |
|
3,433 |
|
|
3,704 |
Total non-interest expense |
|
40,038 |
|
|
40,947 |
|
39,109 |
|
40,748 |
|
|
38,815 |
Income
(loss) before provision for income taxes |
|
34,509 |
|
|
25,325 |
|
26,067 |
|
(23,822 |
) |
|
29,270 |
Provision
(benefit) for income taxes |
|
7,846 |
|
|
6,646 |
|
6,496 |
|
(6,546 |
) |
|
7,087 |
Net income (loss) attributable to Brookline Bancorp, Inc. |
$ |
26,663 |
|
$ |
18,679 |
$ |
19,571 |
$ |
(17,276 |
) |
$ |
22,183 |
Earnings per
common share: |
|
|
|
|
|
Basic |
|
0.34 |
|
|
0.24 |
|
0.25 |
|
(0.22 |
) |
|
0.28 |
Diluted |
|
0.34 |
|
|
0.24 |
|
0.25 |
|
(0.22 |
) |
|
0.28 |
Weighted average common shares outstanding during the period: |
|
|
|
|
Basic |
|
78,533,351 |
|
|
78,948,139 |
|
78,849,282 |
|
79,481,462 |
|
|
79,682,724 |
Diluted |
|
78,680,873 |
|
|
79,055,901 |
|
79,015,274 |
|
79,665,774 |
|
|
79,845,447 |
Dividends
paid per common share |
$ |
0.115 |
|
$ |
0.115 |
$ |
0.115 |
$ |
0.115 |
|
$ |
0.115 |
|
|
|
|
|
|
BROOKLINE
BANCORP, INC. AND SUBSIDIARIES |
Consolidated
Statements of Income (Unaudited) |
|
|
|
Twelve Months Ended December 31, |
|
|
2020 |
|
2019 |
|
(In Thousands Except Share Data) |
Interest and
dividend income: |
|
|
Loans and leases |
$ |
309,798 |
$ |
330,345 |
Debt securities |
|
13,758 |
|
12,281 |
Marketable and restricted equity securities |
|
2,848 |
|
3,477 |
Short-term investments |
|
413 |
|
1,523 |
Total interest and dividend income |
|
326,817 |
|
347,626 |
Interest
expense: |
|
|
Deposits |
|
48,426 |
|
69,615 |
Borrowed funds |
|
18,228 |
|
24,711 |
Total interest expense |
|
66,654 |
|
94,326 |
Net interest
income |
|
260,163 |
|
253,300 |
Provision
for credit losses |
|
61,886 |
|
9,583 |
Net interest income after provision for credit losses |
|
198,277 |
|
243,717 |
Non-interest
income: |
|
|
Deposit fees |
|
9,050 |
|
10,623 |
Loan fees |
|
2,048 |
|
2,097 |
Loan level derivative income, net |
|
4,268 |
|
8,262 |
Gain on investment securities, net |
|
1,970 |
|
508 |
Gain on sales of loans and leases held-for-sale |
|
1,118 |
|
1,709 |
Other |
|
6,190 |
|
6,594 |
Total non-interest income |
|
24,644 |
|
29,793 |
Non-interest
expense: |
|
|
Compensation and employee benefits |
|
100,985 |
|
96,554 |
Occupancy |
|
15,386 |
|
15,696 |
Equipment and data processing |
|
17,345 |
|
18,652 |
Professional services |
|
5,157 |
|
4,366 |
FDIC insurance |
|
4,229 |
|
1,445 |
Advertising and marketing |
|
4,126 |
|
4,044 |
Amortization of identified intangible assets |
|
1,271 |
|
1,663 |
Merger and restructuring expense |
|
- |
|
1,125 |
Other |
|
12,345 |
|
13,936 |
Total non-interest expense |
|
160,844 |
|
157,481 |
Income
before provision for income taxes |
|
62,077 |
|
116,029 |
Provision
for income taxes |
|
14,442 |
|
28,269 |
Net income before noncontrolling interest in subsidiary |
|
47,635 |
|
87,760 |
Less net
income attributable to noncontrolling interest in subsidiary |
|
- |
|
43 |
Net income attributable to Brookline Bancorp, Inc. |
$ |
47,635 |
$ |
87,717 |
Earnings per
common share: |
|
|
Basic |
$ |
0.60 |
$ |
1.10 |
Diluted |
$ |
0.60 |
$ |
1.10 |
Weighted average common shares outstanding during the period: |
|
Basic |
|
78,951,892 |
|
79,679,781 |
Diluted |
|
79,103,289 |
|
79,856,921 |
Dividends
paid per common share |
$ |
0.460 |
$ |
0.440 |
|
|
|
BROOKLINE
BANCORP, INC. AND SUBSIDIARIES |
Asset
Quality Analysis (Unaudited) |
|
At and for the Three Months Ended |
|
December 31, 2020 |
September 30, 2020 |
June 30, 2020 |
March 31, 2020 |
December 31, 2019 |
|
(Dollars in Thousands) |
NONPERFORMING ASSETS: |
|
|
|
|
|
Loans and
leases accounted for on a nonaccrual basis: |
|
|
|
|
|
Commercial real estate mortgage |
$ |
3,300 |
|
$ |
10,841 |
|
$ |
10,139 |
|
$ |
10,937 |
|
$ |
2,845 |
|
Multi-family mortgage |
|
- |
|
|
- |
|
|
- |
|
|
85 |
|
|
84 |
|
Construction |
|
3,853 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Total commercial real estate loans |
|
7,153 |
|
|
10,841 |
|
|
10,139 |
|
|
11,022 |
|
|
2,929 |
|
|
|
|
|
|
|
Commercial |
|
7,702 |
|
|
7,751 |
|
|
12,427 |
|
|
12,991 |
|
|
4,909 |
|
Equipment financing |
|
16,757 |
|
|
13,372 |
|
|
13,100 |
|
|
10,356 |
|
|
9,822 |
|
Condominium association |
|
112 |
|
|
117 |
|
|
190 |
|
|
203 |
|
|
151 |
|
Total commercial loans and leases |
|
24,571 |
|
|
21,240 |
|
|
25,717 |
|
|
23,550 |
|
|
14,882 |
|
|
|
|
|
|
|
Residential mortgage |
|
5,587 |
|
|
4,634 |
|
|
4,157 |
|
|
3,446 |
|
|
753 |
|
Home equity |
|
1,136 |
|
|
1,235 |
|
|
1,278 |
|
|
1,059 |
|
|
896 |
|
Other consumer |
|
1 |
|
|
2 |
|
|
9 |
|
|
7 |
|
|
1 |
|
Total consumer loans |
|
6,724 |
|
|
5,871 |
|
|
5,444 |
|
|
4,512 |
|
|
1,650 |
|
|
|
|
|
|
|
Total nonaccrual loans and leases |
|
38,448 |
|
|
37,952 |
|
|
41,300 |
|
|
39,084 |
|
|
19,461 |
|
|
|
|
|
|
|
Other real
estate owned |
|
5,415 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Other
repossessed assets |
|
1,100 |
|
|
1,413 |
|
|
1,454 |
|
|
2,038 |
|
|
2,631 |
|
Total nonperforming assets |
$ |
44,963 |
|
$ |
39,365 |
|
$ |
42,754 |
|
$ |
41,122 |
|
$ |
22,092 |
|
|
|
|
|
|
|
Loans and
leases past due greater than 90 days and still accruing |
$ |
11,975 |
|
$ |
1,180 |
|
$ |
1,974 |
|
$ |
1,045 |
|
$ |
10,109 |
|
|
|
|
|
|
|
Troubled
debt restructurings on accrual |
|
11,483 |
|
|
11,309 |
|
|
10,172 |
|
|
16,480 |
|
|
17,076 |
|
Troubled
debt restructurings on nonaccrual |
|
7,476 |
|
|
5,742 |
|
|
5,972 |
|
|
5,819 |
|
|
6,104 |
|
Total troubled debt restructurings |
$ |
18,959 |
|
$ |
17,051 |
|
$ |
16,144 |
|
$ |
22,299 |
|
$ |
23,180 |
|
|
|
|
|
|
|
Nonperforming loans and leases as a percentage of total loans and
leases |
|
0.53 |
% |
|
0.51 |
% |
|
0.56 |
% |
|
0.57 |
% |
|
0.29 |
% |
Nonperforming assets as a percentage of total assets |
|
0.50 |
% |
|
0.44 |
% |
|
0.47 |
% |
|
0.49 |
% |
|
0.28 |
% |
|
|
|
|
|
|
PROVISION AND ALLOWANCE FOR LOAN AND LEASE
LOSSES: |
|
|
|
Allowance
for loan and lease losses at beginning of period |
$ |
119,971 |
|
$ |
119,553 |
|
$ |
113,181 |
|
$ |
61,082 |
|
$ |
59,135 |
|
CECL adjustment to retained earnings |
|
- |
|
|
- |
|
|
- |
|
|
6,632 |
|
|
- |
|
Charge-offs |
|
(4,810 |
) |
|
(5,511 |
) |
|
(1,803 |
) |
|
(2,539 |
) |
|
(1,894 |
) |
Recoveries |
|
429 |
|
|
548 |
|
|
420 |
|
|
305 |
|
|
272 |
|
Net charge-offs |
|
(4,381 |
) |
|
(4,963 |
) |
|
(1,383 |
) |
|
(2,234 |
) |
|
(1,622 |
) |
(Credit) provision for loan and lease losses excluding unfunded
commitments * |
|
(1,211 |
) |
|
5,381 |
|
|
7,755 |
|
|
47,701 |
|
|
3,569 |
|
Allowance for loan and lease losses at end of period |
$ |
114,379 |
|
$ |
119,971 |
|
$ |
119,553 |
|
$ |
113,181 |
|
$ |
61,082 |
|
|
|
|
|
|
|
Allowance
for loan and lease losses as a percentage of total loans and
leases |
|
1.57 |
% |
|
1.62 |
% |
|
1.61 |
% |
|
1.66 |
% |
|
0.91 |
% |
|
|
|
|
|
|
NET
CHARGE-OFFS: |
|
|
|
|
|
Commercial
real estate loans |
$ |
3,444 |
|
$ |
70 |
|
$ |
(94 |
) |
$ |
- |
|
$ |
- |
|
Commercial
loans and leases |
|
1,011 |
|
|
4,917 |
|
|
1,498 |
|
|
2,280 |
|
|
1,589 |
|
Consumer
loans |
|
(74 |
) |
|
(24 |
) |
|
(21 |
) |
|
(46 |
) |
|
33 |
|
Total net charge-offs |
$ |
4,381 |
|
$ |
4,963 |
|
$ |
1,383 |
|
$ |
2,234 |
|
$ |
1,622 |
|
|
|
|
|
|
|
Net loan and
lease charge-offs as a percentage of average loans and leases
(annualized) |
|
0.24 |
% |
|
0.27 |
% |
|
0.08 |
% |
|
0.13 |
% |
|
0.10 |
% |
|
|
|
|
|
|
*provision for loan
and lease losses does not include (credit) provision of $(0.9)
million, $(0.9) million, $2.4 million and $6.4 million for credit
losses on unfunded commitments during the three months ended
December 31, 2020, September 30, 2020, June 30, 2020 and March 31,
2020, respectively. |
|
|
|
|
|
|
BROOKLINE
BANCORP, INC. AND SUBSIDIARIES |
Average
Yields / Costs (Unaudited) |
|
Three Months Ended |
|
December 31, 2020 |
September 30, 2020 |
December 31, 2019 |
|
Average Balance |
Interest (1) |
Average Yield/ Cost |
Average Balance |
Interest (1) |
Average Yield/ Cost |
Average Balance |
Interest (1) |
Average Yield/ Cost |
|
(Dollars in Thousands) |
Assets: |
|
|
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
Investments: |
|
|
|
|
|
|
|
|
|
Debt securities (2) |
$ |
770,414 |
$ |
3,334 |
1.73 |
% |
$ |
851,608 |
$ |
3,746 |
1.76 |
% |
$ |
567,037 |
$ |
2,957 |
2.09 |
% |
Marketable and restricted equity securities (2) |
|
51,469 |
|
491 |
3.81 |
% |
|
66,154 |
|
670 |
4.06 |
% |
|
59,763 |
|
823 |
5.51 |
% |
Short-term investments |
|
223,665 |
|
59 |
0.10 |
% |
|
192,446 |
|
46 |
0.10 |
% |
|
93,997 |
|
418 |
1.78 |
% |
Total investments |
|
1,045,548 |
|
3,884 |
1.49 |
% |
|
1,110,208 |
|
4,462 |
1.61 |
% |
|
720,797 |
|
4,198 |
2.33 |
% |
Loans and Leases: |
|
|
|
|
|
|
|
|
|
Commercial real estate loans (3) |
|
3,833,172 |
|
35,526 |
3.63 |
% |
|
3,831,826 |
|
35,615 |
3.64 |
% |
|
3,605,169 |
|
40,976 |
4.45 |
% |
Commercial loans (3) |
|
1,260,883 |
|
11,936 |
3.71 |
% |
|
1,281,202 |
|
10,677 |
3.27 |
% |
|
826,116 |
|
10,066 |
4.78 |
% |
Equipment financing (3) |
|
1,086,855 |
|
18,626 |
6.86 |
% |
|
1,089,058 |
|
19,018 |
6.99 |
% |
|
1,037,431 |
|
19,271 |
7.43 |
% |
Residential mortgage loans (3) |
|
803,884 |
|
7,530 |
3.75 |
% |
|
814,559 |
|
7,860 |
3.86 |
% |
|
804,672 |
|
8,402 |
4.18 |
% |
Other consumer loans (3) |
|
385,818 |
|
3,020 |
3.10 |
% |
|
395,990 |
|
3,127 |
3.13 |
% |
|
417,950 |
|
4,680 |
4.43 |
% |
Total loans and leases |
|
7,370,612 |
|
76,638 |
4.16 |
% |
|
7,412,635 |
|
76,297 |
4.12 |
% |
|
6,691,338 |
|
83,395 |
4.99 |
% |
Total interest-earning assets |
|
8,416,160 |
|
80,522 |
3.83 |
% |
|
8,522,843 |
|
80,759 |
3.79 |
% |
|
7,412,135 |
|
87,593 |
4.73 |
% |
Non-interest-earning assets |
|
458,307 |
|
|
|
495,829 |
|
|
|
448,458 |
|
|
Total assets |
$ |
8,874,467 |
|
|
$ |
9,018,672 |
|
|
$ |
7,860,593 |
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
NOW accounts |
$ |
451,014 |
|
126 |
0.11 |
% |
$ |
427,009 |
|
128 |
0.12 |
% |
$ |
344,036 |
|
115 |
0.13 |
% |
Savings accounts |
|
701,378 |
|
245 |
0.14 |
% |
|
688,223 |
|
258 |
0.15 |
% |
|
604,276 |
|
746 |
0.49 |
% |
Money market accounts |
|
1,947,686 |
|
1,546 |
0.32 |
% |
|
1,855,803 |
|
1,658 |
0.36 |
% |
|
1,685,885 |
|
4,947 |
1.16 |
% |
Certificates of deposit |
|
1,452,867 |
|
5,718 |
1.57 |
% |
|
1,536,969 |
|
7,022 |
1.82 |
% |
|
1,681,844 |
|
9,725 |
2.29 |
% |
Brokered deposit accounts |
|
746,281 |
|
1,190 |
0.63 |
% |
|
562,112 |
|
1,517 |
1.07 |
% |
|
344,909 |
|
2,122 |
2.44 |
% |
Total interest-bearing deposits |
|
5,299,226 |
|
8,825 |
0.66 |
% |
|
5,070,116 |
|
10,583 |
0.83 |
% |
|
4,660,950 |
|
17,655 |
1.50 |
% |
Borrowings: |
|
|
|
|
|
|
|
|
|
Advances from the FHLBB |
|
619,844 |
|
2,118 |
1.34 |
% |
|
944,865 |
|
2,876 |
1.19 |
% |
|
753,460 |
|
4,407 |
2.29 |
% |
Subordinated debentures and notes |
|
83,725 |
|
1,245 |
5.95 |
% |
|
83,687 |
|
1,246 |
5.96 |
% |
|
83,570 |
|
1,293 |
6.19 |
% |
Other borrowed funds |
|
81,320 |
|
54 |
0.26 |
% |
|
118,969 |
|
61 |
0.21 |
% |
|
64,543 |
|
164 |
1.01 |
% |
Total borrowings |
|
784,889 |
|
3,417 |
1.70 |
% |
|
1,147,521 |
|
4,183 |
1.43 |
% |
|
901,573 |
|
5,864 |
2.55 |
% |
Total interest-bearing liabilities |
|
6,084,115 |
|
12,242 |
0.80 |
% |
|
6,217,637 |
|
14,766 |
0.94 |
% |
|
5,562,523 |
|
23,519 |
1.68 |
% |
Non-interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
Demand checking accounts |
|
1,587,618 |
|
|
|
1,569,411 |
|
|
|
1,142,600 |
|
|
Other non-interest-bearing liabilities |
|
265,440 |
|
|
|
296,992 |
|
|
|
213,579 |
|
|
Total liabilities |
|
7,937,173 |
|
|
|
8,084,040 |
|
|
|
6,918,702 |
|
|
Stockholders’ equity |
|
937,294 |
|
|
|
934,632 |
|
|
|
941,891 |
|
|
Total liabilities and equity |
$ |
8,874,467 |
|
|
$ |
9,018,672 |
|
|
$ |
7,860,593 |
|
|
Net interest
income (tax-equivalent basis) /Interest-rate spread (4) |
|
|
68,280 |
3.03 |
% |
|
|
65,993 |
2.85 |
% |
|
|
64,074 |
3.05 |
% |
Less
adjustment of tax-exempt income |
|
|
55 |
|
|
|
55 |
|
|
|
143 |
|
Net interest
income |
|
$ |
68,225 |
|
|
$ |
65,938 |
|
|
$ |
63,931 |
|
Net interest
margin (5) |
|
|
3.23 |
% |
|
|
3.08 |
% |
|
|
3.43 |
% |
|
|
|
|
|
|
|
|
|
|
(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. |
|
|
|
|
|
|
|
|
|
|
BROOKLINE
BANCORP, INC. AND SUBSIDIARIES |
Average
Yields / Costs (Unaudited) |
|
Twelve Months Ended |
|
December 31, 2020 |
December 31, 2019 |
|
Average Balance |
Interest (1) |
Average Yield/ Cost |
Average Balance |
Interest (1) |
Average Yield/ Cost |
|
(Dollars in Thousands) |
Assets: |
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
Investments: |
|
|
|
|
|
|
Debt securities (2) |
$ |
750,689 |
$ |
13,823 |
1.84 |
% |
$ |
585,360 |
$ |
12,483 |
2.13 |
% |
Marketable and restricted equity securities (2) |
|
61,873 |
|
2,862 |
4.63 |
% |
|
59,751 |
|
3,516 |
5.88 |
% |
Short-term investments |
|
186,617 |
|
413 |
0.22 |
% |
|
71,090 |
|
1,523 |
2.14 |
% |
Total investments |
|
999,179 |
|
17,098 |
1.71 |
% |
|
716,201 |
|
17,522 |
2.45 |
% |
Loans and Leases: |
|
|
|
|
|
|
Commercial real estate loans (3) |
|
3,781,201 |
|
148,438 |
3.86 |
% |
|
3,492,848 |
|
164,082 |
4.63 |
% |
Commercial loans (3) |
|
1,140,699 |
|
41,391 |
3.57 |
% |
|
817,347 |
|
39,839 |
4.81 |
% |
Equipment financing (3) |
|
1,074,561 |
|
75,563 |
7.03 |
% |
|
1,012,698 |
|
74,066 |
7.31 |
% |
Residential mortgage loans (3) |
|
810,855 |
|
31,392 |
3.87 |
% |
|
783,556 |
|
32,926 |
4.20 |
% |
Other consumer loans (3) |
|
402,672 |
|
13,255 |
3.28 |
% |
|
414,730 |
|
19,835 |
4.78 |
% |
Total loans and leases |
|
7,209,988 |
|
310,039 |
4.30 |
% |
|
6,521,179 |
|
330,748 |
5.07 |
% |
Total interest-earning assets |
|
8,209,167 |
|
327,137 |
3.99 |
% |
|
7,237,380 |
|
348,270 |
4.81 |
% |
Non-interest-earning assets |
|
474,402 |
|
|
|
417,254 |
|
|
Total assets |
$ |
8,683,569 |
|
|
$ |
7,654,634 |
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity: |
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
NOW accounts |
$ |
408,374 |
|
484 |
0.12 |
% |
$ |
339,275 |
|
436 |
0.13 |
% |
Savings accounts |
|
670,217 |
|
1,503 |
0.22 |
% |
|
608,022 |
|
2,900 |
0.48 |
% |
Money market accounts |
|
1,817,085 |
|
9,519 |
0.52 |
% |
|
1,682,676 |
|
21,206 |
1.26 |
% |
Certificates of deposit |
|
1,577,104 |
|
30,355 |
1.92 |
% |
|
1,611,389 |
|
36,326 |
2.25 |
% |
Brokered deposit accounts |
|
512,803 |
|
6,565 |
1.28 |
% |
|
344,961 |
|
8,747 |
2.54 |
% |
Total interest-bearing deposits |
|
4,985,583 |
|
48,426 |
0.97 |
% |
|
4,586,323 |
|
69,615 |
1.52 |
% |
Borrowings: |
|
|
|
|
|
|
Advances from the FHLBB |
|
859,389 |
|
12,842 |
1.47 |
% |
|
757,598 |
|
18,701 |
2.43 |
% |
Subordinated debentures and notes |
|
83,667 |
|
5,038 |
6.02 |
% |
|
83,511 |
|
5,206 |
6.23 |
% |
Other borrowed funds |
|
90,587 |
|
348 |
0.38 |
% |
|
79,276 |
|
804 |
1.01 |
% |
Total borrowings |
|
1,033,643 |
|
18,228 |
1.73 |
% |
|
920,385 |
|
24,711 |
2.65 |
% |
Total interest-bearing liabilities |
|
6,019,226 |
|
66,654 |
1.11 |
% |
|
5,506,708 |
|
94,326 |
1.71 |
% |
Non-interest-bearing liabilities: |
|
|
|
|
|
|
Demand checking accounts |
|
1,451,556 |
|
|
|
1,070,859 |
|
|
Other non-interest-bearing liabilities |
|
276,712 |
|
|
|
159,690 |
|
|
Total liabilities |
|
7,747,494 |
|
|
|
6,737,257 |
|
|
Brookline
Bancorp, Inc. stockholders’ equity |
|
936,075 |
|
|
|
917,286 |
|
|
Noncontrolling interest in subsidiary |
|
- |
|
|
|
91 |
|
|
Total liabilities and equity |
$ |
8,683,569 |
|
|
$ |
7,654,634 |
|
|
Net interest
income (tax-equivalent basis) /Interest-rate spread (4) |
|
|
260,483 |
2.88 |
% |
|
|
253,944 |
3.10 |
% |
Less
adjustment of tax-exempt income |
|
|
320 |
|
|
|
644 |
|
Net interest
income |
|
$ |
260,163 |
|
|
$ |
253,300 |
|
Net interest
margin (5) |
|
|
3.17 |
% |
|
|
3.51 |
% |
|
|
|
|
|
|
|
(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. |
|
|
|
|
|
|
|
BROOKLINE
BANCORP, INC. AND SUBSIDIARIES |
Non-GAAP
Financial Information (Unaudited) |
|
|
|
At and for the Three Months Ended December
31, |
At and for the Twelve Months Ended December
31, |
|
|
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Reconciliation Table - Non-GAAP Financial
Information |
|
(Dollars in Thousands Except Share Data) |
|
|
|
|
|
|
|
Net income attributable to Brookline Bancorp, Inc. |
|
|
$ |
26,663 |
|
$ |
22,183 |
|
$ |
47,635 |
|
$ |
87,717 |
|
Less: |
|
|
|
|
|
|
|
Security gains (after-tax) |
|
- |
|
|
101 |
|
|
1,511 |
|
|
384 |
|
Add: |
|
|
|
|
|
|
|
Merger and restructuring-related expenses (after-tax) |
|
|
- |
|
|
- |
|
|
- |
|
|
851 |
|
Operating earnings |
|
|
|
$ |
26,663 |
|
$ |
22,082 |
|
$ |
46,124 |
|
$ |
88,184 |
|
|
|
|
|
|
|
|
|
Operating earnings per common share: |
|
|
|
|
|
|
Basic |
|
|
|
$ |
0.34 |
|
$ |
0.28 |
|
$ |
0.58 |
|
$ |
1.11 |
|
Diluted |
|
|
|
|
0.34 |
|
|
0.28 |
|
|
0.58 |
|
|
1.10 |
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding during the period: |
|
|
|
|
|
Basic |
|
|
|
|
78,533,351 |
|
|
79,682,724 |
|
|
78,951,892 |
|
|
79,679,781 |
|
Diluted |
|
|
|
|
78,680,873 |
|
|
79,845,447 |
|
|
79,103,289 |
|
|
79,856,921 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets * |
|
|
|
1.20 |
% |
|
1.13 |
% |
|
0.55 |
% |
|
1.15 |
% |
Less: |
|
|
|
|
|
|
|
Security gains (after-tax) * |
|
|
|
- |
% |
|
0.01 |
% |
|
0.02 |
% |
|
0.01 |
% |
Add: |
|
|
|
|
|
|
|
Merger and restructuring-related expenses (after-tax) * |
|
|
- |
% |
|
- |
% |
|
- |
% |
|
0.01 |
% |
Operating return on average assets * |
|
|
|
1.20 |
% |
|
1.12 |
% |
|
0.53 |
% |
|
1.15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average tangible assets * |
|
|
|
1.22 |
% |
|
1.15 |
% |
|
0.56 |
% |
|
1.17 |
% |
Less: |
|
|
|
|
|
|
|
Security gains (after-tax) * |
|
|
|
- |
% |
|
0.01 |
% |
|
0.02 |
% |
|
0.01 |
% |
Add: |
|
|
|
|
|
|
|
Merger and restructuring-related expenses (after-tax) * |
|
|
- |
% |
|
- |
% |
|
- |
% |
|
0.01 |
% |
Operating return on average tangible assets * |
|
|
|
1.22 |
% |
|
1.14 |
% |
|
0.54 |
% |
|
1.17 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average stockholders' equity * |
|
|
|
11.38 |
% |
|
9.42 |
% |
|
5.09 |
% |
|
9.56 |
% |
Less: |
|
|
|
|
|
|
|
Security gains (after-tax) * |
|
|
|
- |
% |
|
0.04 |
% |
|
0.16 |
% |
|
0.04 |
% |
Add: |
|
|
|
|
|
|
|
Merger and restructuring-related expenses (after-tax) * |
|
|
- |
% |
|
- |
% |
|
- |
% |
|
0.09 |
% |
Operating return on average stockholders' equity
* |
|
|
11.38 |
% |
|
9.38 |
% |
|
4.93 |
% |
|
9.61 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average tangible stockholders' equity * |
|
|
13.79 |
% |
|
11.42 |
% |
|
6.17 |
% |
|
11.67 |
% |
Less: |
|
|
|
|
|
|
|
Security gains (after-tax) * |
|
|
|
- |
% |
|
0.05 |
% |
|
0.20 |
% |
|
0.05 |
% |
Add: |
|
|
|
|
|
|
|
Merger and restructuring-related expenses (after-tax) * |
|
|
- |
% |
|
- |
% |
|
- |
% |
|
0.11 |
% |
Operating return on average tangible stockholders' equity
* |
|
|
13.79 |
% |
|
11.37 |
% |
|
5.97 |
% |
|
11.73 |
% |
|
|
|
|
|
|
|
|
* Ratios at and for the three months ended are annualized. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BROOKLINE
BANCORP, INC. AND SUBSIDIARIES |
Non-GAAP
Financial Information (Unaudited) |
|
At and for the Three Months Ended |
At and for the Twelve Months Ended |
|
December 31, 2020 |
September 30, 2020 |
June 30, 2020 |
March 31, 2020 |
December 31, 2019 |
December 31, 2020 |
December 31, 2019 |
|
(Dollars in Thousands) |
|
|
|
|
|
|
|
|
Net income (loss), as reported |
$ |
26,663 |
|
$ |
18,679 |
|
$ |
19,571 |
|
$ |
(17,276 |
) |
$ |
22,183 |
|
$ |
47,635 |
|
$ |
87,717 |
|
|
|
|
|
|
|
|
|
Average
total assets |
$ |
8,874,467 |
|
$ |
9,018,672 |
|
$ |
8,869,540 |
|
$ |
7,965,826 |
|
$ |
7,860,593 |
|
$ |
8,683,569 |
|
$ |
7,654,634 |
|
Less:
Average goodwill and average identified intangible assets, net |
|
163,758 |
|
|
164,072 |
|
|
164,385 |
|
|
164,701 |
|
|
165,071 |
|
|
164,227 |
|
|
165,697 |
|
Average
tangible assets |
$ |
8,710,709 |
|
$ |
8,854,600 |
|
$ |
8,705,155 |
|
$ |
7,801,125 |
|
$ |
7,695,522 |
|
$ |
8,519,342 |
|
$ |
7,488,937 |
|
|
|
|
|
|
|
|
|
Return on average tangible assets
(annualized) |
|
1.22 |
% |
|
0.84 |
% |
|
0.90 |
% |
|
(0.89 |
)% |
|
1.15 |
% |
|
0.56 |
% |
|
1.17 |
% |
|
|
|
|
|
|
|
|
Average
total stockholders’ equity |
$ |
937,294 |
|
$ |
934,632 |
|
$ |
926,239 |
|
$ |
946,138 |
|
$ |
941,891 |
|
$ |
936,075 |
|
$ |
917,286 |
|
Less:
Average goodwill and average identified intangible assets, net |
|
163,758 |
|
|
164,072 |
|
|
164,385 |
|
|
164,701 |
|
|
165,071 |
|
|
164,227 |
|
|
165,697 |
|
Average
tangible stockholders’ equity |
$ |
773,536 |
|
$ |
770,560 |
|
$ |
761,854 |
|
$ |
781,437 |
|
$ |
776,820 |
|
$ |
771,848 |
|
$ |
751,589 |
|
|
|
|
|
|
|
|
|
Return on average tangible stockholders’ equity
(annualized) |
|
13.79 |
% |
|
9.70 |
% |
|
10.28 |
% |
|
(8.84 |
)% |
|
11.42 |
% |
|
6.17 |
% |
|
11.67 |
% |
|
|
|
|
|
|
|
|
Brookline
Bancorp, Inc. stockholders’ equity |
$ |
941,778 |
|
$ |
935,558 |
|
$ |
926,413 |
|
$ |
912,568 |
|
$ |
945,606 |
|
$ |
941,778 |
|
$ |
945,606 |
|
Less: |
|
|
|
|
|
|
|
Goodwill |
|
160,427 |
|
|
160,427 |
|
|
160,427 |
|
|
160,427 |
|
|
160,427 |
|
|
160,427 |
|
|
160,427 |
|
Identified intangible assets, net |
|
3,152 |
|
|
3,464 |
|
|
3,775 |
|
|
4,087 |
|
|
4,423 |
|
|
3,152 |
|
|
4,423 |
|
Tangible
stockholders' equity |
$ |
778,199 |
|
$ |
771,667 |
|
$ |
762,211 |
|
$ |
748,054 |
|
$ |
780,756 |
|
$ |
778,199 |
|
$ |
780,756 |
|
|
|
|
|
|
|
|
|
Total
assets |
$ |
8,942,424 |
|
$ |
9,000,192 |
|
$ |
9,069,667 |
|
$ |
8,461,591 |
|
$ |
7,856,853 |
|
$ |
8,942,424 |
|
$ |
7,856,853 |
|
Less: |
|
|
|
|
|
|
|
Goodwill |
|
160,427 |
|
|
160,427 |
|
|
160,427 |
|
|
160,427 |
|
|
160,427 |
|
|
160,427 |
|
|
160,427 |
|
Identified intangible assets, net |
|
3,152 |
|
|
3,464 |
|
|
3,775 |
|
|
4,087 |
|
|
4,423 |
|
|
3,152 |
|
|
4,423 |
|
Tangible
assets |
$ |
8,778,845 |
|
$ |
8,836,301 |
|
$ |
8,905,465 |
|
$ |
8,297,077 |
|
$ |
7,692,003 |
|
$ |
8,778,845 |
|
$ |
7,692,003 |
|
|
|
|
|
|
|
|
|
Tangible stockholders’ equity to tangible
assets |
|
8.86 |
% |
|
8.73 |
% |
|
8.56 |
% |
|
9.02 |
% |
|
10.15 |
% |
|
8.86 |
% |
|
10.15 |
% |
|
|
|
|
|
|
|
|
Tangible
stockholders' equity |
$ |
778,199 |
|
$ |
771,667 |
|
$ |
762,211 |
|
$ |
748,054 |
|
$ |
780,756 |
|
$ |
778,199 |
|
$ |
780,756 |
|
|
|
|
|
|
|
|
|
Number of
common shares issued |
|
85,177,172 |
|
|
85,177,172 |
|
|
85,177,172 |
|
|
85,177,172 |
|
|
85,177,172 |
|
|
85,177,172 |
|
|
85,177,172 |
|
Less: |
|
|
|
|
|
|
|
Treasury shares |
|
6,525,783 |
|
|
5,629,854 |
|
|
5,859,708 |
|
|
5,862,811 |
|
|
5,003,127 |
|
|
6,525,783 |
|
|
5,003,127 |
|
Unallocated ESOP shares |
|
51,114 |
|
|
58,227 |
|
|
65,334 |
|
|
72,441 |
|
|
79,548 |
|
|
51,114 |
|
|
79,548 |
|
Unvested restricted shares |
|
458,800 |
|
|
487,318 |
|
|
398,188 |
|
|
395,085 |
|
|
406,450 |
|
|
458,800 |
|
|
406,450 |
|
Number of
common shares outstanding |
|
78,141,475 |
|
|
79,001,773 |
|
|
78,853,942 |
|
|
78,846,835 |
|
|
79,688,047 |
|
|
78,141,475 |
|
|
79,688,047 |
|
|
|
|
|
|
|
|
|
Tangible book value per common share |
$ |
9.96 |
|
$ |
9.77 |
|
$ |
9.67 |
|
$ |
9.49 |
|
$ |
9.80 |
|
$ |
9.96 |
|
$ |
9.80 |
|
|
|
|
|
|
|
|
|
Allowance
for loan and lease losses |
$ |
114,379 |
|
$ |
119,971 |
|
$ |
119,553 |
|
$ |
113,181 |
|
$ |
61,082 |
|
$ |
114,379 |
|
$ |
61,082 |
|
|
|
|
|
|
|
|
|
Total loans
and leases |
$ |
7,269,553 |
|
$ |
7,396,358 |
|
$ |
7,407,697 |
|
$ |
6,822,527 |
|
$ |
6,737,816 |
|
$ |
7,269,553 |
|
$ |
6,737,816 |
|
Less: |
|
|
|
|
|
|
|
Total PPP loans |
|
489,216 |
|
|
568,383 |
|
|
565,768 |
|
|
- |
|
|
- |
|
|
489,216 |
|
|
- |
|
Total loans and leases excluding PPP loans |
$ |
6,780,337 |
|
$ |
6,827,975 |
|
$ |
6,841,929 |
|
$ |
6,822,527 |
|
$ |
6,737,816 |
|
$ |
6,780,337 |
|
$ |
6,737,816 |
|
|
|
|
|
|
|
|
|
Allowance for loan and lease losses as a percentage of
total loans and leases less PPP loans |
|
1.69 |
% |
|
1.76 |
% |
|
1.75 |
% |
|
1.66 |
% |
|
0.91 |
% |
|
1.69 |
% |
|
0.91 |
% |
|
|
|
|
|
|
|
|
PDF
available: http://ml.globenewswire.com/Resource/Download/e76ed2c8-cf10-4556-a6fa-1c6f41314184
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