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Section 1: 8-K (FORM 8-K)

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________

Form 8-K
_____________________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event Reported): October 24, 2018  

BROOKLINE BANCORP, INC.
(Exact Name of Registrant as Specified in Charter)

Delaware0-2369504-3402944
(State or Other Jurisdiction of Incorporation)(Commission File Number)(I.R.S. Employer Identification Number)

 

131 Clarendon Street, Boston, MA 02116
(Address of Principal Executive Offices) (Zip Code)

(617) 425-4600
(Registrant's telephone number, including area code)

Not applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 [   ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 [   ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 [   ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 [   ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company [   ]

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [   ]

 
 

Item 2.02. Results of Operations and Financial Condition.

On October 24, 2018, the Board of Directors of the Company issued a press release announcing its earnings for the quarter ended September 30, 2018.  Additionally, the Company announced the approval by its Board of Directors of a regular quarterly dividend of $0.105 per share payable on November 23, 2018 to stockholders of record on November 9, 2018.  A copy of that press release is filed herewith as Exhibit 99.1 and is hereby incorporated by reference herein.

Item 9.01. Financial Statements and Exhibits.

99.1            Press release of Brookline Bancorp, Inc. reporting earnings and dividend approval, issued October 24, 2018


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 BROOKLINE BANCORP, INC.
   
  
Date: October 24, 2018By: /s/ Carl M. Carlson        
  Carl M. Carlson
  Chief Financial Officer
  


EXHIBIT INDEX

The following exhibits are furnished as part of this report:

Exhibit No. Description
   
99.1 Press release of Brookline Bancorp, Inc. reporting earnings and dividend approval, issued October 24, 2018


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Section 2: EX-99.1 (PRESS RELEASE)

EdgarFiling

EXHIBIT 99.1

Brookline Bancorp Announces Third Quarter Results; Record Net Income of $22.5 million, EPS of $0.28; Quarterly Dividend Increase of 5.0%

BOSTON, Oct. 24, 2018 (GLOBE NEWSWIRE) -- 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 third quarter of 2018, compared to $20.8 million, or $0.26 per basic and diluted share, for the second quarter of 2018, and $15.4 million, or $0.20 per basic and diluted share, for the third quarter of 2017.

Paul Perrault, President and Chief Executive Officer of the Company, commented on the third quarter earnings, “We are pleased to report earnings of $22.5 million for the third quarter of 2018 representing $0.28 per share. Thanks to our team of exceptional employees, the Company has continued to experience loan growth with solid returns and asset quality, all while maintaining our commitment to outstanding customer service.”

BALANCE SHEET

Total assets at September 30, 2018 increased $34.9 million to $7.32 billion from $7.29 billion at June 30, 2018, and increased $634.3 million from $6.69 billion at September 30, 2017. At September 30, 2018, total loans and leases were $6.23 billion, representing an increase of $56.4 million from June 30, 2018, and an increase of $588.3 million from September 30, 2017.

Investment securities at September 30, 2018 decreased $20.6 million to $654.6 million, comprising 8.94 percent of total assets, as compared to $675.3 million, or 9.27 percent of total assets, at June 30, 2018, and increased approximately $24.0 million from $630.6 million, or 9.43 percent of total assets, at September 30, 2017.

Total deposits at September 30, 2018 increased $35.3 million to $5.23 billion from $5.20 billion at June 30, 2018 and increased $427.9 million from $4.81 billion at September 30, 2017.

Total borrowings at September 30, 2018 decreased $28.0 million to $1.08 billion from $1.11 billion at June 30, 2018 and increased $97.0 million from $985.9 million at September 30, 2017.

The ratio of stockholders’ equity to total assets was 12.16 percent at September 30, 2018, as compared to 12.04 percent at June 30, 2018, and 12.04 percent at September 30, 2017. The ratio of tangible stockholders’ equity to tangible assets was 10.11 percent at September 30, 2018, as compared to 9.97 percent at June 30, 2018, and 10.09 percent at September 30, 2017. Tangible book value per share increased $0.15 from $8.85 at June 30, 2018 to $9.00 at September 30, 2018, compared to $8.63 at September 30, 2017.

NET INTEREST INCOME

Net interest income decreased $0.4 million to $62.3 million during the third quarter of 2018 from the quarter ended June 30, 2018. The net interest margin decreased 7 basis points to 3.57 percent for the three months ended September 30, 2018.

NON-INTEREST INCOME

Non-interest income for the quarter ended September 30, 2018 increased $1.6 million to $7.1 million from $5.5 million for the quarter ended June 30, 2018. The increase was primarily driven by an increase of $1.6 million in loan level derivative income.

PROVISION FOR CREDIT LOSSES

The Company recorded a provision for credit losses of $2.7 million for the quarter ended September 30, 2018, compared to $1.5 million for the quarter ended June 30, 2018. The increase in the provision for the quarter was driven by specific reserves primarily related to taxi medallion loans. 

At the end of the quarter, the carrying value of taxi medallion loans was $14.5 million with reserves of $2.9 million. For collateral valuation purposes, taxi medallions are currently estimated at $35,000 for Boston and $20,000 for Cambridge. The Company has no taxi medallion exposure outside Massachusetts.

Total net charge-offs for the third quarter of 2018 were $0.6 million compared to $2.3 million in the second quarter of 2018, which was primarily driven by charge-offs in the taxi medallion portfolio. The ratio of net charge-offs to average loans and leases on an annualized basis decreased to 4 basis points for the third quarter of 2018 from 15 basis points for the second quarter of 2018.

The allowance for loan and lease losses represented 0.96 percent of total loans and leases at September 30, 2018, compared to 0.94 percent at June 30, 2018, and 1.16 percent at September 30, 2017. The allowance for loan and lease losses related to originated loans and leases represented 1.00 percent of originated loans and leases at September 30, 2018, compared to 0.98 percent at June 30, 2018, and 1.20 percent at September 30, 2017.

NON-INTEREST EXPENSE

Non-interest expense for the quarter ended September 30, 2018 decreased $0.4 million to $37.3 million from $37.7 million for the quarter ended June 30, 2018. The decrease was primarily driven by decreases of $0.2 million in compensation and employee benefits, $0.3 million in merger and acquisition expense and $0.4 million in other non-interest expense, partially offset by increases of $0.2 million in equipment and data processing and $0.3 million in FDIC insurance.

PROVISION FOR INCOME TAXES

The effective tax rate was 20.9 percent and 22.9 percent for the three and nine months ended September 30, 2018, respectively. During the quarter, several discrete items were recognized, the most significant benefit related to a recent IRS ruling regarding section 162(m). The total of these favorable tax adjustments represents approximately $0.9 million or $0.01 per share. The Company expects the effective tax rate to be approximately 24 percent for the fourth quarter. 

RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

The annualized return on average assets increased to 1.23 percent during the third quarter of 2018 from 1.15 percent for the second quarter of 2018. The annualized return on average tangible assets increased to 1.26 percent for the third quarter of 2018 from 1.17 percent for the second quarter of 2018.

The annualized return on average stockholders' equity increased to 10.10 percent during the third quarter of 2018 from 9.53 percent for the second quarter of 2018. The annualized return on average tangible stockholders’ equity increased to 12.44 percent for the third quarter of 2018 from 11.80 percent for the second quarter of 2018.

ASSET QUALITY

The ratio of nonperforming loans and leases to total loans and leases was 0.41 percent at September 30, 2018 as compared to 0.42 percent at June 30, 2018. Nonperforming loans and leases remained consistent at $25.8 million for September 30, 2018 and June 30, 2018, respectively. The ratio of nonperforming assets to total assets remained consistent at 0.41 percent for September 30, 2018 and June 30, 2018, respectively. Nonperforming assets decreased $0.4 million to $29.7 million at September 30, 2018 from $30.1 million at June 30, 2018.

DIVIDEND DECLARED

The Company’s Board of Directors approved a dividend of $0.105 per share for the quarter ended September 30, 2018, representing an increase of 5.0 percent. The dividend will be paid on November 23, 2018 to stockholders of record on November 9, 2018. This is the second increase in the quarterly common dividend this year and represents a year over year increase in the quarterly dividend of 16.7 percent.

CONFERENCE CALL

The Company will conduct a conference call/webcast at 1:30 PM Eastern Daylight Time on Thursday, October 25, 2018 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 10124269. 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 $7.3 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 and return on average tangible stockholders' equity. 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. Carlson

                        Brookline Bancorp, Inc.

                        Chief Financial Officer

                        (617) 425-5331

                        ccarlson@brkl.com

 
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Selected Financial Highlights (Unaudited)
 
 At and for the Three Months Ended
 September 30,
2018
 June 30,
2018
 March 31,
2018
 December 31,
2017
 September 30,
2017
 (Dollars In Thousands Except per Share Data)
Earnings Data:         
Net interest income$  62,332   $  62,717   $  59,491   $  57,657   $  56,843  
Provision for credit losses  2,717     1,470     641     1,802     2,911  
Non-interest income  7,069     5,526     6,168     5,815     5,973  
Non-interest expense  37,310     37,702     39,938     35,152     35,408  
Income before provision for income taxes  29,374     29,071     25,080     26,518     24,497  
Net income attributable to Brookline Bancorp, Inc.  22,460     20,831     18,633     6,827     15,366  
          
Performance Ratios:         
Net interest margin (1) 3.57%  3.64%  3.66%  3.59%  3.57%
Interest-rate spread (1) 3.27%  3.36%  3.38%  3.42%  3.41%
Return on average assets (annualized) 1.23%  1.15%  1.08%  0.41%  0.92%
Return on average tangible assets (annualized) (non-GAAP) 1.26%  1.17%  1.10%  0.41%  0.94%
Return on average stockholders' equity (annualized) 10.10%  9.53%  8.98%  3.37%  7.64%
Return on average tangible stockholders' equity (annualized) (non-GAAP) 12.44%  11.80%  11.01%  4.09%  9.31%
Efficiency ratio (2) 53.76%  55.25%  60.83%  55.38%  56.37%
          
Per Common Share Data:         
Net income — Basic$  0.28   $  0.26   $  0.24   $  0.09   $  0.20  
Net income — Diluted  0.28     0.26     0.24     0.09     0.20  
Cash dividends declared  0.10     0.10     0.09     0.09     0.09  
Book value per share (end of period)  11.08     10.94     10.80     10.49     10.52  
Tangible book value per share (end of period) (non-GAAP)  9.00     8.85     8.69     8.61     8.63  
Stock price (end of period)  16.70     18.60     16.20     15.70     15.50  
 
Balance Sheet:         
Total assets$  7,320,596   $  7,285,710   $  7,248,114   $  6,780,249   $  6,686,284  
Total loans and leases  6,227,707     6,171,274     6,114,461     5,730,679     5,639,440  
Total deposits  5,233,611     5,198,280     5,191,520     4,871,343     4,805,683  
Brookline Bancorp, Inc. stockholders’ equity  890,368     877,283     865,777     803,830     804,762  
          
Asset Quality:         
Nonperforming assets$  29,718   $  30,145   $  30,242   $  31,691   $  44,371  
Nonperforming assets as a percentage of total assets 0.41%  0.41%  0.42%  0.47%  0.66%
Allowance for loan and lease losses$  59,997   $  57,981   $  58,714   $  58,592   $  65,413  
Allowance for loan and lease losses as a percentage of total loans and leases 0.96%  0.94%  0.96%  1.02%  1.16%
Net loan and lease charge-offs$  564   $  2,330   $  505   $  8,507   $  1,954  
Net loan and lease charge-offs as a percentage of average loans and leases (annualized) 0.04%  0.15%  0.03%  0.60%  0.14%
          
Capital Ratios:         
Stockholders’ equity to total assets 12.16%  12.04%  11.94%  11.86%  12.04%
Tangible stockholders’ equity to tangible assets (non-GAAP) 10.11%  9.97%  9.85%  9.94%  10.09%
          
(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)
 September 30,
2018
 June 30,
2018
 March 31,
2018
 December 31,
2017
 September 30,
2017
ASSETS(In Thousands Except Share Data)
Cash and due from banks$30,762  $32,724  $34,713  $25,622  $35,392 
Short-term investments 23,114   22,754   49,743   35,383   27,971 
Total cash and cash equivalents 53,876   55,478   84,456   61,005   63,363 
Investment securities available-for-sale 534,788   558,602   558,357   540,124   522,910 
Investment securities held-to-maturity 115,684   116,670   117,352   109,730   107,738 
Investment securities trading 4,169             
Total investment securities 654,641   675,272   675,709   649,854   630,648 
Loans and leases held-for-sale 937   1,034   756   2,628   2,973 
Loans and leases:         
Commercial real estate loans:         
Commercial real estate mortgage 2,287,979   2,269,520   2,284,488   2,174,969   2,119,440 
Multi-family mortgage 828,849   816,311   793,006   760,670   743,912 
Construction 164,217   178,335   169,440   140,138   165,657 
Total commercial real estate loans 3,281,045   3,264,166   3,246,934   3,075,777   3,029,009 
Commercial loans and leases:         
Commercial 771,200   761,964   761,540   705,004   689,010 
Equipment financing 954,579   920,643   892,341   866,488   842,516 
Condominium association 52,205   53,537   52,739   52,619   53,770 
Total commercial loans and leases 1,777,984   1,736,144   1,706,620   1,624,111   1,585,296 
Consumer loans:         
Residential mortgage 759,167   754,818   766,687   660,065   652,415 
Home equity 380,303   382,597   364,928   355,954   356,982 
Other consumer 29,208   33,549   29,292   14,772   15,738 
Total consumer loans 1,168,678   1,170,964   1,160,907   1,030,791   1,025,135 
Total loans and leases 6,227,707   6,171,274   6,114,461   5,730,679   5,639,440 
Allowance for loan and lease losses (59,997)  (57,981)  (58,714)  (58,592)  (65,413)
Net loans and leases 6,167,710   6,113,293   6,055,747   5,672,087   5,574,027 
Restricted equity securities 63,963   68,343   66,164   59,369   62,135 
Premises and equipment, net of accumulated depreciation 77,886   79,194   80,268   80,283   81,159 
Deferred tax asset 22,249   20,826   19,198   15,061   28,093 
Goodwill 160,427   160,427   160,896   137,890   137,890 
Identified intangible assets, net of accumulated amortization 6,623   7,160   7,697   6,044   6,563 
Other real estate owned and repossessed assets 3,934   4,352   3,963   4,419   4,398 
Other assets 108,350   100,331   93,260   91,609   95,035 
Total assets$7,320,596  $7,285,710  $7,248,114  $6,780,249  $6,686,284 
LIABILITIES AND STOCKHOLDERS' EQUITY         
Deposits:         
Non-interest-bearing deposits:         
Demand checking accounts$1,017,234  $1,002,954  $987,153  $942,583  $905,472 
Interest-bearing deposits:         
NOW accounts 322,587   346,936   342,374   350,568   318,284 
Savings accounts 612,210   603,079   637,920   646,359   665,558 
Money market accounts 1,623,220   1,704,652   1,862,351   1,724,363   1,749,040 
Certificate of deposit accounts 1,658,360   1,540,659   1,361,722   1,207,470   1,167,329 
Total interest-bearing deposits 4,216,377   4,195,326   4,204,367   3,928,760   3,900,211 
Total deposits 5,233,611   5,198,280   5,191,520   4,871,343   4,805,683 
Borrowed funds:         
Advances from the FHLBB 959,446   991,091   982,533   889,909   872,579 
Subordinated debentures and notes 83,392   83,352   83,311   83,271   83,229 
Other borrowed funds 40,048   36,480   33,585   47,639   30,087 
Total borrowed funds 1,082,886   1,110,923   1,099,429   1,020,819   985,895 
Mortgagors’ escrow accounts 8,227   8,122   8,395   7,686   8,151 
Accrued expenses and other liabilities 96,047   82,017   74,024   67,818   74,019 
Total liabilities 6,420,771   6,399,342   6,373,368   5,967,666   5,873,748 
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, 81,695,695 shares issued, and 81,695,695 shares issued, respectively 852   852   852   817   817 
Additional paid-in capital 757,061   756,254   755,843   699,976   700,624 
Retained earnings, partially restricted 200,151   185,734   172,934   161,217   160,225 
Accumulated other comprehensive (loss) income (15,599)  (13,415)  (11,666)  (5,950)  (1,893)
Treasury stock, at cost;         
4,291,317 shares, 4,409,501 shares, 4,401,333 shares, 4,440,665 shares, and 4,572,954 shares, respectively (51,454)  (51,454)  (51,454)  (51,454)  (54,188)
Unallocated common stock held by the Employee Stock Ownership Plan;         
118,050 shares, 126,144 shares, 134,238 shares, 142,332 shares, and 150,921 shares, respectively (643)  (688)  (732)  (776)  (823)
Total Brookline Bancorp, Inc. stockholders’ equity 890,368   877,283   865,777   803,830   804,762 
Noncontrolling interest in subsidiary 9,457   9,085   8,969   8,753   7,774 
Total stockholders' equity 899,825   886,368   874,746   812,583   812,536 
Total liabilities and stockholders' equity$7,320,596  $7,285,710  $7,248,114  $6,780,249  $6,686,284 
          

 

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
 Three Months Ended
 September 30, 2018 June 30, 2018 March 31, 2018 December 31, 2017 September 30, 2017
 (In Thousands Except Share Data)
Interest and dividend income:         
Loans and leases$75,877 $73,329 $67,272 $64,272 $63,054
Debt securities 3,585  3,563  3,323  3,214  3,154
Marketable and restricted equity securities 1,029  1,003  924  751  788
Short-term investments 145  179  120  100  180
Total interest and dividend income 80,636  78,074  71,639  68,337  67,176
Interest expense:         
Deposits 11,916  9,219  7,099  6,681  5,984
Borrowed funds 6,388  6,138  5,049  3,999  4,349
Total interest expense 18,304  15,357  12,148  10,680  10,333
Net interest income 62,332  62,717  59,491  57,657  56,843
Provision for credit losses 2,717  1,470  641  1,802  2,911
Net interest income after provision for credit losses 59,615  61,247  58,850  55,855  53,932
Non-interest income:         
Deposit fees 2,648  2,620  2,463  2,542  2,547
Loan fees 417  330  290  338  282
Loan level derivative income, net 2,192  571  866  755  844
(Loss)/gain on sales of investment securities, net     1,162    
Gain on sales of loans and leases held-for-sale 535  722  299  935  1,049
Other 1,277  1,283  1,088  1,245  1,251
Total non-interest income 7,069  5,526  6,168  5,815  5,973
Non-interest expense:         
Compensation and employee benefits 22,338  22,565  22,314  20,652  21,067
Occupancy 3,913  3,879  3,959  3,594  3,650
Equipment and data processing 4,601  4,368  4,618  4,417  4,210
Professional services 1,075  1,055  1,144  1,200  973
FDIC insurance 846  514  635  678  842
Advertising and marketing 1,068  1,118  1,057  856  839
Amortization of identified intangible assets 537  539  467  519  519
Merger and acquisition expense 22  334  2,905  206  205
Other 2,910  3,330  2,839  3,030  3,103
Total non-interest expense 37,310  37,702  39,938  35,152  35,408
Income before provision for income taxes 29,374  29,071  25,080  26,518  24,497
Provision for income taxes - operating 6,140  7,342  5,652  9,747  8,330
Impact of revaluation of DTA       8,965  
Total provision for income taxes 6,140  7,342  5,652  18,712  8,330
Net income before noncontrolling interest in subsidiary 23,234  21,729  19,428  7,806  16,167
Less net income attributable to noncontrolling interest in subsidiary 774  898  795  979  801
Net income attributable to Brookline Bancorp, Inc.$22,460 $20,831 $18,633 $6,827 $15,366
Earnings per common share:         
Basic$0.28 $0.26 $0.24 $0.09 $0.20
Diluted$0.28 $0.26 $0.24 $0.09 $0.20
Weighted average common shares outstanding during the period:        
Basic 80,315,050  80,184,977  77,879,593  76,583,712  76,452,539
Diluted 80,515,467  80,505,614  78,167,800  76,868,307  76,961,948
Dividends declared per common share$0.10 $0.10 $0.09 $0.09 $0.09
          
 

 

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
   
  Nine Months Ended September 30,
  20182017
  (In Thousands Except Share Data)
Interest and dividend income:    
Loans and leases $216,478 $182,750
Debt securities  10,471  9,310
Marketable and restricted equity securities  2,956  2,311
Short-term investments  444  342
Total interest and dividend income  230,349  194,713
Interest expense:    
Deposits  28,234  16,607
Borrowed funds  17,575  12,582
Total interest expense  45,809  29,189
Net interest income  184,540  165,524
Provision for credit losses  4,828  17,186
Net interest income after provision for credit losses  179,712  148,338
Non-interest income:    
Deposit Fees  7,731  7,508
Loan Fees  1,037  772
Loan level derivative income, net  3,629  1,432
Gain on sales of investment securities, net  1,162  11,393
Gain on sales of loans and leases held-for-sale  1,556  1,709
Other  3,648  3,544
Total non-interest income  18,763  26,358
Non-interest expense:    
Compensation and employee benefits  67,217  61,761
Occupancy  11,751  10,952
Equipment and data processing  13,587  12,437
Professional services  3,274  3,115
FDIC insurance  1,995  2,648
Advertising and marketing  3,243  2,513
Amortization of identified intangible assets  1,543  1,570
Merger and acquisition expense  3,261  205
Other  9,079  8,758
Total non-interest expense  114,950  103,959
Income before provision for income taxes  83,525  70,737
Provision for income taxes  19,134  24,924
Net income before noncontrolling interest in subsidiary  64,391  45,813
Less net income attributable to noncontrolling interest in subsidiary  2,467  2,122
Net income attributable to Brookline Bancorp, Inc. $61,924 $43,691
Earnings per common share:    
Basic $0.78 $0.59
Diluted $0.78 $0.59
Weighted average common shares outstanding during the period:  
Basic  79,471,238  73,743,658
Diluted  79,740,992  74,226,316
Dividends declared per common share $0.29 $0.27
 

 

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Asset Quality Analysis (Unaudited)
 At and for the Three Months Ended
 September 30, 2018 June 30, 2018 March 31, 2018 December 31, 2017 September 30, 2017
 (Dollars in Thousands)
NONPERFORMING ASSETS:         
Loans and leases accounted for on a nonaccrual basis:         
Commercial real estate mortgage$3,369  $3,774  $4,080  $3,313  $3,051 
Multi-family mortgage 357   568   588   608   792 
Construction 640   640   860   860   860 
Total commercial real estate loans 4,366   4,982   5,528   4,781   4,703 
          
Commercial 7,862   9,487   11,150   11,619   22,367 
Equipment financing 9,659   8,825   6,661   8,106   9,858 
Condominium association 295             
Total commercial loans and leases 17,816   18,312   17,811   19,725   32,225 
          
Residential mortgage 2,538   1,571   1,962   1,979   1,969 
Home equity 1,053   923   925   744   1,047 
Other consumer 11   5   53   43   29 
Total consumer loans 3,602   2,499   2,940   2,766   3,045 
          
Total nonaccrual loans and leases 25,784   25,793   26,279   27,272   39,973 
          
Other real estate owned 3,136   3,436   3,235   3,235   3,235 
Other repossessed assets 798   916   728   1,184   1,163 
Total nonperforming assets$29,718  $30,145  $30,242  $31,691  $44,371 
          
Loans and leases past due greater than 90 days and still accruing$14,954  $12,340  $5,240  $3,020  $2,523 
          
Troubled debt restructurings on accrual 12,657   12,911   14,294   16,241   14,024 
Troubled debt restructurings on nonaccrual 8,779   9,391   8,610   9,770   15,290 
Total troubled debt restructurings$21,436  $22,302  $22,904  $26,011  $29,314 
          
Nonperforming loans and leases as a percentage of total loans and leases 0.41%  0.42%  0.43%  0.48%  0.71%
Nonperforming assets as a percentage of total assets 0.41%  0.41%  0.42%  0.47%  0.66%
          
PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:      
Allowance for loan and lease losses at beginning of period$57,981  $58,714  $58,592  $65,413  $64,521 
Charge-offs (1,227)  (3,605)  (792)  (8,921)  (2,143)
Recoveries 663   1,275   287   414   189 
Net charge-offs (564)  (2,330)  (505)  (8,507)  (1,954)
Provision for loan and lease losses 2,580   1,597   627   1,686   2,846 
Allowance for loan and lease losses at end of period$59,997  $57,981  $58,714  $58,592  $65,413 
          
Allowance for loan and lease losses as a percentage of total loans and leases 0.96%  0.94%  0.96%  1.02%  1.16%
Allowance for loan and lease losses related to originated loans and leases as a percentage of originated loans and leases (non-GAAP) 1.00%  0.98%  1.03%  1.05%  1.20%
          
NET CHARGE-OFFS:         
Commercial real estate loans$  $100  $3  $200  $65 
Commercial loans and leases 579   2,304   532   8,290   1,856 
Consumer loans (15)  (74)  (30)  17   33 
Total net charge-offs$564  $2,330  $505  $8,507  $1,954 
          
Net loan and lease charge-offs as a percentage of average loans and leases (annualized) 0.04%  0.15%  0.03%  0.60%  0.14%
          
 

 

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Average Yields / Costs (Unaudited)
 Three Months Ended
 September 30, 2018 June 30, 2018 September 30, 2017
 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)$663,125  $3,638 2.20% $666,182  $3,617 2.17% $642,018  $3,264 2.03%
Marketable and restricted equity securities (2) 67,607   1,029 6.09%  69,395   1,004 5.78%  66,212   789 4.76%
Short-term investments 31,061   145 1.87%  41,155   179 1.74%  52,674   180 1.36%
Total investments 761,793   4,812 2.53%  776,732   4,800 2.47%  760,904   4,233 2.23%
Loans and Leases:                 
Commercial real estate loans (3) 3,260,634   37,332 4.48%  3,250,488   36,372 4.43%  2,974,185   31,299 4.12%
Commercial loans (3) 819,383   9,862 4.72%  823,860   9,323 4.48%  760,115   7,959 4.10%
Equipment financing (3) 933,007   16,220 6.95%  907,089   15,739 6.94%  846,027   13,983 6.61%
Residential mortgage loans (3) 756,421   7,648 4.04%  759,866   7,552 3.98%  649,831   6,043 3.72%
Other consumer loans (3) 412,248   4,928 4.73%  406,144   4,464 4.40%  369,925   4,015 4.30%
Total loans and leases 6,181,693   75,990 4.92%  6,147,447   73,450 4.78%  5,600,083   63,299 4.52%
Total interest-earning assets 6,943,486   80,802 4.65%  6,924,179   78,250 4.52%  6,360,987   67,532 4.25%
Allowance for loan and lease losses (58,576)      (59,247)      (65,140)    
Non-interest-earning assets 417,503       408,861       385,195     
Total assets$7,302,413      $7,273,793      $6,681,042     
                  
Liabilities and Stockholders' Equity:                 
Interest-bearing liabilities:                 
Deposits:                 
NOW accounts$344,760   72 0.08% $346,410   65 0.07% $321,731   55 0.07%
Savings accounts 599,514   472 0.31%  609,758   405 0.27%  605,303   306 0.20%
Money market accounts 1,668,402   4,367 1.04%  1,767,509   3,530 0.80%  1,765,610   2,267 0.51%
Certificates of deposit 1,612,551   7,005 1.72%  1,422,782   5,219 1.47%  1,139,699   3,356 1.17%
Total interest-bearing deposits 4,225,227   11,916 1.12%  4,146,459   9,219 0.89%  3,832,343   5,984 0.62%
Borrowings                 
Advances from the FHLBB 907,306   4,979 2.15%  1,018,130   4,696 1.82%  913,206   3,028 1.30%
Subordinated debentures and notes 83,370   1,301 6.24%  83,330   1,296 6.22%  83,204   1,274 6.13%
Other borrowed funds 56,918   108 0.75%  46,635   146 1.26%  41,368   47 0.45%
Total borrowings 1,047,594   6,388 2.39%  1,148,095   6,138 2.11%  1,037,778   4,349 1.64%
Total interest-bearing liabilities 5,272,821   18,304 1.38%  5,294,554   15,357 1.16%  4,870,121   10,333 0.84%
Non-interest-bearing liabilities:                 
Demand checking accounts 1,023,610       1,003,985       918,054     
Other non-interest-bearing liabilities 107,449       91,889       80,616     
Total liabilities 6,403,880       6,390,428       5,868,791     
Brookline Bancorp, Inc. stockholders’ equity 889,259       874,513       804,666     
Noncontrolling interest in subsidiary 9,274       8,852       7,585     
Total liabilities and equity$7,302,413      $7,273,793      $6,681,042