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| 8-K - BROOKLINE BANCORP, INC. 8-K - BROOKLINE BANCORP INC | a50244437.htm |
Exhibit 99.1
Brookline Bancorp Announces 2012 First Quarter Results
Quarter Highlights
- 1Q12 Operating EPS Increased 15% to $0.15, up from 4Q11 $0.13
- Acquisition of Bancorp Rhode Island Complete
- $4.9 Billion in Assets
- Consistent Operating Results
- Strong Organic Loan and Deposit Growth
- Solid Credit Quality
BROOKLINE, Mass.--(BUSINESS WIRE)--April 18, 2012--Brookline Bancorp, Inc. (NASDAQ: BRKL) today reported net income of $6.3 million, or $0.09 fully diluted earnings per share (EPS), for the quarter ended March 31, 2012. These results compare to the first quarter 2011 net income of $7.3 million, or $0.12 fully diluted EPS, and the net income for the fourth quarter 2011 of $7.1 million, or $0.12 fully diluted EPS. Net earnings from operations were $10.3 million, or $0.15 per fully diluted share, after adjustment for merger-related expenses of $4.0 million (after-tax) associated with the January 1, 2012 acquisition of Bancorp Rhode Island, Inc. (“Bancorp Rhode Island”).
“Brookline Bancorp again delivered solid operating results, through continued organic loan and deposit growth and strong credit fundamentals” reported Paul A. Perrault, President and CEO of Brookline Bancorp. “We have already begun to capitalize upon the Bank Rhode Island acquisition and, looking forward, we remain enthusiastic about the growth opportunities in our respective marketplaces and our capacity to deliver on an expanded suite of products and services.”
FIRST QUARTER OPERATING RESULTS
Brookline Bancorp posted net operating earnings of $10.3 million, or $0.15 per diluted share in the first quarter of 2012, after adjustment for merger-related expenses of $4.0 million after tax. Total revenues (net interest income and non-interest income) of $47.2 million increased 57.4 percent as compared to the last quarter of 2011, driven by 53.0 percent growth in net interest income and 141.1 percent growth in other fee income. These results reflect increases in average commercial real estate loans, commercial loans and consumer loans of $589.8 million, $299.2 million and $338.4 million, respectively, and average core deposits of $638.6 million over the fourth quarter of 2011. Net interest margin was 4.08 percent, up from the fourth quarter of 2011, as Brookline Bancorp began to benefit from the Bancorp Rhode Island acquisition and continued to improve low-cost deposit balances.
NET INTEREST INCOME
Net interest income for the first quarter 2012 increased to $43.6 million from $25.9 million in the first quarter 2011 and increased compared to $28.5 million in the fourth quarter 2011. Net interest margin for the first quarter 2012 was 4.08 percent, representing an improvement of 34 basis points from the first quarter 2011 and an increase of 30 basis points from the fourth quarter 2011. These increases in net interest income and margin are largely as a result of the Bancorp Rhode Island acquisition and the continued increase in lower-cost transaction accounts as a percentage of total deposits.
NON-INTEREST INCOME
Non-interest income was $3.6 million for the first quarter 2012, up $2.5 million from the first quarter 2011 and $2.1 million from the fourth quarter 2011. The growth was primarily driven by $2.3 million of non-interest income attributable to Bancorp Rhode Island.
NON-INTEREST EXPENSE
Non-interest expense was $32.6 million in the first quarter 2012, up $19.1 million compared to the first quarter 2011 and up $16.1 million from the fourth quarter 2011. The increase for both periods was primarily due to additional expense related to the acquisition of Bancorp Rhode Island. Included in this increase are $5.4 million of pre-tax merger-related expenses.
BALANCE SHEET
Total assets at March 31, 2012 grew to $4.9 billion with the acquisition of Bancorp Rhode Island, representing an increase of 59.5 percent from the first quarter of 2011 and 47.8 percent from December 31, 2011.
The loan and lease portfolio grew to $3.9 billion as of March 31, 2012. This represented increases of $1.4 billion, or 55.9 percent, from March 31, 2011 and $1.2 billion, or 44.6 percent, from December 31, 2011. Growth from March 31, 2011 was driven by organic growth of 10.0 percent, primarily from commercial real estate and commercial loan and lease organic growth of 15.6 percent and 13.2 percent, respectively, and the addition of $1.2 billion in loans and leases from the Bancorp Rhode Island acquisition. The increase in the loan and lease portfolio from December 31, 2011 was also driven by the addition of $1.2 billion of Bancorp Rhode Island loans and leases as well as organic growth in the commercial real estate loan and lease portfolios of 3.5 percent.
Total deposits were $3.5 billion at March 31, 2012, up 63.3 percent from March 31, 2011 and 53.6 percent from December 31, 2011. Growth from March 31, 2011 was driven by organic growth of 9.0 percent and the addition of $1.2 billion in deposits from the Bancorp Rhode Island acquisition. Transaction deposit (non-certificate of deposit) trends remained positive with growth of 87.2 percent from March 31, 2011 and a 65.7 percent increase from December 31, 2011. The transaction deposit growth from December 31, 2011 was driven by $877.9 million in transaction deposits acquired from Bancorp Rhode Island as well as organic growth among the demand checking and money market savings accounts. For the three months ended March 31, 2012, the average balance of transaction deposits rose to 63.0 percent of the average balance of total deposits compared to 54.9 percent at March 31, 2011 and 59.7 percent from December 31, 2011.
The carrying value of Federal Home Loan Bank (FHLB) advances for the first quarter 2012 were $698.7 million, up $306.3 million from the first quarter 2011 and $200.1 million from December 31, 2011, largely as a result of the Bancorp Rhode Island acquisition.
Brookline Bancorp recorded goodwill of $93.1 million, $28.4 million in loan discounts, core deposit intangibles of $19.4 million, deferred tax assets of $9.3 million, borrowing-related discounts of $16.3 million, and net discounts on various other assets and liabilities of $3.8 million in conjunction with its acquisition of Bancorp Rhode Island.
ASSET QUALITY
Non-performing assets at March 31, 2012 totaled $14.6 million or 0.30 percent of total assets. This represented an increase from $8.8 million, or 0.27 percent of total assets, at December 31, 2011.
Net charge-offs were $522,000, or 0.05 percent of average loans and leases, for the first quarter 2012 compared to net charge-offs for the first quarter 2011 of $706,000, or 0.12 percent of average loans and leases, and $267,000, or 0.04 percent of average loans and leases, in the fourth quarter 2011.
The provision for credit losses was $3.2 million for the first quarter 2012, compared to $1.1 million in the first quarter 2011 and $0.8 million in the fourth quarter 2011. The change in the provision for credit losses was primarily due to provisions on newly originated loans and leases at Bancorp Rhode Island.
The allowance for loan and lease losses was $34.4 million at March 31, 2012 compared to $31.7 million at December 31, 2011 and $30.0 million at March 31, 2011. The allowance for loan and lease losses as a percent of total loans and leases was 0.87 percent at March 31, 2012, compared to 1.17 percent at December 31, 2011 and 1.19 percent at March 31, 2011. The decrease in the allowance for loan and lease losses as a percentage of total loans and leases is due to the loans and leases acquired in the Bancorp Rhode Island acquisition being recorded at fair value on the date of acquisition.
DIVIDEND DECLARED
The Company’s Board of Directors approved a dividend of $0.085 per share. The dividend will be paid on May 25, 2012, to shareholders of record on May 11, 2012.
CONFERENCE CALL
The Company will conduct a conference call/webcast at 2:30pm eastern time on Thursday, April 19th, 2012 to discuss the results for the quarter, business highlights and outlook. Participants should dial-in to the call ten minutes prior to commencement. The call can be accessed by dialing 877-317-6789 (United States) or 412-317-6789 (internationally). A recorded playback of the call will be available for one week following the call at 877-344-7529 (United States) or 412-317-0088 (internationally). The passcode for playback is 10012838. The call will also be available live or in a recorded version on the Company’s website www.brooklinebank.com under “Investor Relations.”
ABOUT BROOKLINE BANCORP, INC.
Brookline Bancorp, Inc., a bank holding company with approximately $4.9 billion in assets and 43 branches throughout Massachusetts and Rhode Island, is headquartered in Brookline, Massachusetts and operates as the holding company for Brookline Bank, Bank Rhode Island, and The First National Bank of Ipswich. The Company provides commercial and retail banking services, and cash management and investment services to customers throughout Central New England. More information about Brookline Bancorp, Inc. and its banks can be found at the following websites: www.brooklinebank.com, www.bankri.com, and www.fnbi.com.
FORWARD-LOOKING STATEMENTS
Certain statements contained in this press release that are not historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties. The Company’s actual results could differ materially from those projected in the forward-looking statements as a result of, among others, the risks outlined in the Company’s Annual Report on Form 10-K, as updated by its Quarterly Reports on Form 10-Q and other filings submitted to the Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.
NON-GAAP FINANCIAL MEASURES
The Company uses certain non-GAAP financial measures, such as net earnings from operations, which excludes items such as merger-related expenses (after tax) from net income, tangible book value per common share and tangible stockholders’ equity to tangible assets. These non-GAAP financial measures provide information for investors to effectively analyze financial trends of ongoing business activities, and to enhance comparability with peers across the financial sector. A detailed reconciliation table of the Company's GAAP to the non-GAAP measures is attached.
| BROOKLINE BANCORP, INC. AND SUBSIDIARIES | ||||||||||
| Selected Financial Highlights (Unaudited) | ||||||||||
|
At or for the Three Months |
||||||||||
| 2012 | 2011 | |||||||||
|
(In Thousands Except
Per Share Data) |
||||||||||
| Financial Data: | ||||||||||
| Net interest income | $ | 43,634 | $ | 25,940 | ||||||
| Provision for credit losses | 3,247 | 1,059 | ||||||||
| Non-interest income | 3,595 | 1,126 | ||||||||
| Non-interest expense | 32,592 | 13,449 | ||||||||
| Income before income taxes | 11,390 | 12,558 | ||||||||
| Net income attributable to Brookline Bancorp, Inc. | 6,349 | 7,267 | ||||||||
| Selected Statistical Data: | ||||||||||
| Net interest margin (1) | 4.08 | % | 3.74 | % | ||||||
| Interest rate spread (1) | 3.88 | % | 3.45 | % | ||||||
| Return on average assets | 0.53 | % | 1.02 | % | ||||||
| Return on average stockholders' equity | 4.04 | % | 5.85 | % | ||||||
| Common Share Data: | ||||||||||
| Basic earnings per share | $ | 0.09 | $ | 0.12 | ||||||
| Diluted earnings per share | 0.09 | 0.12 | ||||||||
| Dividends paid per share | 0.085 | 0.085 | ||||||||
| Book value per common share | 8.51 | 8.42 | ||||||||
| Tangible book value per common share | 6.16 | 7.54 | ||||||||
| Market value per common share at end of period | 9.37 | 10.53 | ||||||||
(1) Calculated on a fully-taxable equivalent basis.
| At or for the Three Months Ended | ||||||||||||||||
| Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||||||||
| (Dollars in Thousands) | ||||||||||||||||
| Balance Sheet: | ||||||||||||||||
| Total assets | $ 4,877,124 | $ 3,299,013 | $ 3,157,498 | $ 3,114,582 | $ 3,057,772 | |||||||||||
| Loans and leases, gross | 3,935,518 | 2,720,821 | 2,662,076 | 2,588,923 | 2,524,990 | |||||||||||
| Deposits | 3,459,333 | 2,252,331 | 2,179,605 | 2,159,133 | 2,118,259 | |||||||||||
| Brookline Bancorp, Inc. stockholders’ equity | 597,531 | 503,602 | 501,890 | 501,077 | 497,582 | |||||||||||
| Asset Quality: | ||||||||||||||||
| Non-performing assets | $ 14,648 | $ 8,796 | $ 10,486 | $ 11,774 | $ 10,787 | |||||||||||
| Non-performing assets / total assets | 0.30% | 0.27% | 0.33% | 0.38% | 0.35% | |||||||||||
| Allowance for loan and lease losses | $ 34,428 | $ 31,703 | $ 31,128 | $ 30,847 | $ 30,048 | |||||||||||
| Allowance for loan and lease losses / total loans and leases | 0.87% | 1.17% | 1.17% | 1.19% | 1.19% | |||||||||||
| Net loan charge-offs | $ 522 | $ 267 | $ 610 | $ 371 | $ 706 | |||||||||||
| Net loan and lease charge-offs to average loans and leases (annualized) | 0.05% | 0.04% | 0.09% | 0.06% | 0.12% | |||||||||||
| Capital Ratios: | ||||||||||||||||
| Stockholders’ equity to total assets | 12.25% | 15.27% | 15.90% | 16.09% | 16.27% | |||||||||||
| Tangible stockholders’ equity to tangible assets | 9.18% | 13.93% | 14.49% | 14.66% | 14.81% | |||||||||||
| BROOKLINE BANCORP, INC. AND SUBSIDIARIES | ||||||||||||
| Consolidated Balance Sheets (Unaudited) | ||||||||||||
|
March 31, |
December 31, | March 31, | ||||||||||
| 2012 | 2011 | 2011 | ||||||||||
| (In Thousands Except Share Data) | ||||||||||||
| ASSETS | ||||||||||||
| Cash and due from banks | $ | 88,884 | $ | 56,513 | $ | 23,241 | ||||||
| Short-term investments | 44,382 | 49,783 | 73,165 | |||||||||
| Total cash and cash equivalents | 133,266 | 106,296 | 96,406 | |||||||||
| Investment securities available for sale | 461,998 | 217,431 | 319,108 | |||||||||
| Restricted equity securities | 53,554 | 39,283 | 39,101 | |||||||||
| Total securities | 515,552 | 256,714 | 358,209 | |||||||||
| Loans and leases | ||||||||||||
| Commercial real estate: | ||||||||||||
| Commercial real estate mortgage | 1,172,051 | 748,736 | 665,333 | |||||||||
| Multi-family mortgage | 596,285 | 481,459 | 445,540 | |||||||||
| Construction | 77,487 | 40,798 | 27,288 | |||||||||
| Total commercial real estate | 1,845,823 | 1,270,993 | 1,138,161 | |||||||||
| Commercial loans: | ||||||||||||
| Commercial | 360,095 | 150,895 | 138,844 | |||||||||
| Equipment financing | 344,812 | 246,118 | 213,726 | |||||||||
| Condominium association | 45,872 | 46,953 | 38,318 | |||||||||
| Total commercial loans | 750,779 | 443,966 | 390,888 | |||||||||
| Indirect automobile | 578,622 | 573,350 | 576,108 | |||||||||
| Consumer loans: | ||||||||||||
| Residential mortgage | 490,810 | 350,213 | 343,105 | |||||||||
| Home equity | 262,591 | 76,527 | 70,931 | |||||||||
| Other consumer | 6,893 | 5,772 | 5,797 | |||||||||
| Total consumer loans | 760,294 | 432,512 | 419,833 | |||||||||
| Allowance for loan and lease losses | (34,428 | ) | (31,703 | ) | (30,048 | ) | ||||||
| Net loans and leases | 3,901,090 | 2,689,118 | 2,494,942 | |||||||||
| Premises and equipment, net | 54,954 | 38,495 | 20,063 | |||||||||
| Deferred tax asset | 24,647 | 12,681 | 13,552 | |||||||||
| Goodwill | 138,914 | 45,799 | 46,854 | |||||||||
| Identified intangible assets | 25,849 | 5,214 | 5,569 | |||||||||
| Other real estate owned and repossessed assets, net | 2,647 | 1,266 | 1,264 | |||||||||
| Monies in escrow – Bancorp Rhode Island, Inc. acquisition | - | 112,983 | - | |||||||||
| Other assets | 80,205 | 30,447 | 20,913 | |||||||||
| Total assets | $ | 4,877,124 | $ | 3,299,013 | $ | 3,057,772 | ||||||
| LIABILITIES AND EQUITY | ||||||||||||
| Deposits | ||||||||||||
| Demand checking accounts | $ | 529,945 | $ | 225,284 | $ | 171,547 | ||||||
| NOW accounts | 181,299 | 110,220 | 143,899 | |||||||||
| Savings accounts | 511,736 | 164,744 | 163,642 | |||||||||
| Money market savings accounts | 1,174,805 | 946,411 | 801,917 | |||||||||
| Certificate of deposit accounts | 1,061,548 | 805,672 | 837,254 | |||||||||
| Total deposits | 3,459,333 | 2,252,331 | 2,118,259 | |||||||||
| Overnight and short-term borrowings | 47,602 | 8,349 | 2,861 | |||||||||
| Other borrowed funds | 710,934 | 498,570 | 405,333 | |||||||||
| Mortgagors’ escrow accounts | 7,156 | 6,513 | 6,393 | |||||||||
| Accrued expenses and other liabilities | 50,883 | 26,248 | 24,556 | |||||||||
| Total liabilities | 4,275,908 | 2,792,011 | 2,557,402 | |||||||||
| Equity: | ||||||||||||
| Brookline Bancorp, Inc. stockholders’ equity: | ||||||||||||
|
Preferred stock, $0.01 par value; 50,000,000 shares authorized; none issued |
- | - | - | |||||||||
|
Common stock, $0.01 par value; 200,000,000 shares authorized; 75,585,504 shares, 64,597,180 shares and 64,445,389 shares issued, respectively |
754 | 644 | 644 | |||||||||
| Additional paid-in capital | 618,140 | 525,171 | 524,671 | |||||||||
| Retained earnings, partially restricted | 40,398 | 39,993 | 34,618 | |||||||||
| Accumulated other comprehensive income | 2,348 | 1,963 | 2,007 | |||||||||
| Treasury stock, at cost, 5,373,733 shares | (62,107 | ) | (62,107 | ) | (62,107 | ) | ||||||
|
Unallocated common stock held by ESOP – 367,137 shares, 378,215 shares and 412,869 shares, respectively |
(2,002 | ) | (2,062 | ) | (2,251 | ) | ||||||
| Total Brookline Bancorp, Inc. stockholders’ equity | 597,531 | 503,602 | 497,582 | |||||||||
| Noncontrolling interest in subsidiary | 3,685 | 3,400 | 2,788 | |||||||||
| Total equity | 601,216 | 507,002 | 500,370 | |||||||||
| Total liabilities and equity | $ | 4,877,124 | $ | 3,299,013 | $ | 3,057,772 | ||||||
| BROOKLINE BANCORP, INC. AND SUBSIDIARIES | |||||||||
| Consolidated Statements of Income (Unaudited) | |||||||||
| Three Months Ended March 31, | |||||||||
| 2012 | 2011 | ||||||||
| (In Thousands Except Share Data) | |||||||||
| Interest income: | |||||||||
| Loans and leases | $ | 49,643 | $ | 31,625 | |||||
| Debt securities | 3,229 | 1,757 | |||||||
| Short-term investments | 27 | 24 | |||||||
| Marketable and restricted equity securities | 92 | 37 | |||||||
| Total interest income | 52,991 | 33,443 | |||||||
| Interest expense: | |||||||||
| Deposits (excluding brokered deposits) | 5,517 | 4,895 | |||||||
| Borrowed funds and subordinated debt | 3,840 | 2,608 | |||||||
| Total interest expense | 9,357 | 7,503 | |||||||
| Net interest income | 43,634 | 25,940 | |||||||
| Provision for credit losses | 3,247 | 1,059 | |||||||
| Net interest income after provision for credit losses | 40,387 | 24,881 | |||||||
| Non-interest income: | |||||||||
| Fees, charges and other income | 3,733 | 1,046 | |||||||
| Loss from investments in affordable housing projects | (138 | ) | - | ||||||
| Gain on sales of securities | - | 80 | |||||||
| Total non-interest income | 3,595 | 1,126 | |||||||
| Non-interest expense: | |||||||||
| Compensation and employee benefits | 14,688 | 6,811 | |||||||
| Occupancy | 2,676 | 1,374 | |||||||
| Equipment and data processing | 3,584 | 2,075 | |||||||
| Professional services | 6,453 | 789 | |||||||
| FDIC insurance | 630 | 434 | |||||||
| Advertising and marketing | 703 | 393 | |||||||
| Amortization of identified intangible assets | 1,344 | 296 | |||||||
| Other | 2,514 | 1,277 | |||||||
| Total non-interest expense | 32,592 | 13,449 | |||||||
| Income before income taxes | 11,390 | 12,558 | |||||||
| Provision for income taxes | 4,756 | 5,008 | |||||||
| Net income | 6,634 | 7,550 | |||||||
| Less net income attributable to noncontrolling interest in subsidiary | 285 | 283 | |||||||
| Net income attributable to Brookline Bancorp, Inc. | $ | 6,349 | $ | 7,267 | |||||
| Earnings per common share: | |||||||||
| Basic | $ | 0.09 | $ | 0.12 | |||||
| Diluted | 0.09 | 0.12 | |||||||
| Weighted average common shares outstanding during the period: | |||||||||
| Basic | 69,664,619 | 58,611,488 | |||||||
| Diluted | 69,665,873 | 58,618,309 | |||||||
| Dividends declared per common share | $ | 0.085 | $ | 0.085 | |||||
| BROOKLINE BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||
| Asset Quality Analysis (Unaudited) | ||||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||
| Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||||||||||||||||||
| (Dollars in Thousands) | ||||||||||||||||||||||||||
| NON-PERFORMING ASSETS: | ||||||||||||||||||||||||||
| Non-accrual loans: | ||||||||||||||||||||||||||
| Commercial real estate mortgage | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
| Multi-family mortgage | 2,635 | 1,380 | 1,373 | 1,376 | 964 | |||||||||||||||||||||
| Construction | - | - | - | - | 2,475 | |||||||||||||||||||||
| Total commercial real estate | 2,635 | 1,380 | 1,373 | 1,376 | 3,439 | |||||||||||||||||||||
| Commercial | 2,146 | - | - | - | - | |||||||||||||||||||||
| Equipment financing | 1,226 | 1,925 | 1,892 | 1,757 | 1,390 | |||||||||||||||||||||
| Condominium association | 13 | 15 | 17 | - | - | |||||||||||||||||||||
| Total commercial loans | 3,385 | 1,940 | 1,909 | 1,757 | 1,390 | |||||||||||||||||||||
| Indirect automobile | 26 | 111 | 59 | 117 | 83 | |||||||||||||||||||||
| Home equity | 299 | 98 | 98 | 98 | 25 | |||||||||||||||||||||
| Residential mortgage | 2,999 | 1,327 | 1,330 | 1,381 | 1,342 | |||||||||||||||||||||
| Other consumer | 10 | 10 | 11 | 9 | 9 | |||||||||||||||||||||
| Total consumer loans | 3,308 | 1,435 | 1,439 | 1,488 | 1,376 | |||||||||||||||||||||
| Acquired loans | 2,647 | 2,664 | 2,757 | 3,167 | 3,235 | |||||||||||||||||||||
|
Total non-accrual loans |
12,001 | 7,530 | 7,537 | 7,905 | 9,523 | |||||||||||||||||||||
| Repossessed vehicles | 403 | 389 | 558 | 461 | 528 | |||||||||||||||||||||
| Repossessed equipment | 37 | 32 | 129 | 192 | 309 | |||||||||||||||||||||
| Other real estate owned | 2,207 | 845 | 2,262 | 3,216 | 427 | |||||||||||||||||||||
| Total non-performing assets | $ | 14,648 | $ | 8,796 | $ | 10,486 | $ | 11,774 | $ | 10,787 | ||||||||||||||||
| Restructured loans on accrual | $ | 6,692 | $ | 5,205 | $ | 3,456 | $ | 4,905 | $ | 5,138 | ||||||||||||||||
| Non-accrual loans as a percent of total loans | 0.30 | % | 0.28 | % | 0.28 | % | 0.31 | % | 0.38 | % | ||||||||||||||||
| Non-performing assets as a percent of total assets | 0.30 | % | 0.27 | % | 0.33 | % | 0.38 | % | 0.35 | % | ||||||||||||||||
| PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES: | ||||||||||||||||||||||||||
| Balance at beginning of period | $ | 31,703 | $ | 31,128 | $ | 30,847 | $ | 30,048 | $ | 29,695 | ||||||||||||||||
| Provision for credit losses | 3,247 | 842 | 891 | 1,170 | 1,059 | |||||||||||||||||||||
| Charge-offs | (788 | ) | (533 | ) | (792 | ) | (606 | ) | (966 | ) | ||||||||||||||||
| Recoveries | 266 | 266 | 182 | 235 | 260 | |||||||||||||||||||||
| Net charge-offs | (522 | ) | (267 | ) | (610 | ) | (371 | ) | (706 | ) | ||||||||||||||||
| Balance at end of period | $ | 34,428 | $ | 31,703 | $ | 31,128 | $ | 30,847 | $ | 30,048 | ||||||||||||||||
| Allowance for loan and lease losses as a percent of total loans and leases | 0.87 | % | 1.17 | % | 1.17 | % | 1.19 | % | 1.19 | % | ||||||||||||||||
|
|
|
|
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| NET CHARGE-OFFS: | ||||||||||||||||||||||||||
| Commercial real estate | $ | (40 | ) | $ | - | $ | 30 | $ | - | $ | - | |||||||||||||||
| Commercial | 263 | (18 | ) | 132 | 79 | 250 | ||||||||||||||||||||
| Auto | 292 | 278 | 448 | 292 | 457 | |||||||||||||||||||||
| Consumer | 7 | 7 | - | - | (1 | ) | ||||||||||||||||||||
| Total net charge-offs | $ | 522 | $ | 267 | $ | 610 | $ | 371 | $ | 706 | ||||||||||||||||
| Net charge-offs to average loans and leases (annualized) | 0.05 | % | 0.04 | % | 0.09 | % | 0.06 | % | 0.12 | % | ||||||||||||||||
| BROOKLINE BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||
| Average Yields / Costs | ||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||
| March 31, 2012 | March 31, 2011 | |||||||||||||||||||||||
| Average | Average | Average | Average | |||||||||||||||||||||
| balance | Interest (1) | yield/cost | balance | Interest (1) | yield/cost | |||||||||||||||||||
| (Dollars in Thousands) | ||||||||||||||||||||||||
|
Assets |
||||||||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||||
| Short-term investments | $ | 50,810 | $ | 27 | 0.21 | % | $ | 55,183 | $ | 24 | 0.18 | % | ||||||||||||
| Debt securities (2) | 517,843 | 3,237 | 2.50 | 306,773 | 1,763 | 2.30 | ||||||||||||||||||
| Equity securities (2) | 55,943 | 108 | 0.78 | 37,907 | 41 | 0.43 | ||||||||||||||||||
| Commercial real estate loans (3) | 1,829,834 | 23,468 | 5.67 | 1,056,836 | 14,065 | 5.23 | ||||||||||||||||||
| Commercial and industrial loans (3) | 393,669 | 6,384 | 5.29 | 151,300 | 1,779 | 4.77 | ||||||||||||||||||
| Equipment financing loans (3) | 341,801 | 4,960 | 5.80 | 209,590 | 4,390 | 8.49 | ||||||||||||||||||
| Indirect automobile loans (3) | 574,926 | 6,247 | 4.37 | 560,097 | 7,209 | 5.22 | ||||||||||||||||||
| Residential mortgage loans (3) | 491,012 | 5,544 | 4.52 | 294,899 | 3,308 | 4.55 | ||||||||||||||||||
| Other consumer loans (3) | 273,561 | 3,040 | 6.29 | 80,366 | 874 | 4.41 | ||||||||||||||||||
| Total interest-earning assets | 4,529,398 | 53,015 | 4.91 | % | 2,752,951 | 33,453 | 4.85 | % | ||||||||||||||||
| Allowance for loan losses | (38,294 | ) | (29,779 | ) | ||||||||||||||||||||
| Non-interest earning assets | 370,481 | 118,056 | ||||||||||||||||||||||
| Total assets | $ | 4,861,586 | $ | 2,841,228 | ||||||||||||||||||||
|
Liabilities and Stockholders' Equity |
||||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||
| Deposits: | ||||||||||||||||||||||||
| NOW accounts | $ | 179,086 | $ | 53 | 0.12 | % | $ | 122,998 | 47 | 0.15 | % | |||||||||||||
| Savings accounts | 511,147 | 498 | 0.39 | 133,340 | 218 | 0.66 | ||||||||||||||||||
| Money market savings accounts | 1,143,545 | 2,152 | 0.76 | 721,808 | 1,724 | 0.97 | ||||||||||||||||||
| Certificates of deposit | 1,078,276 | 2,813 | 1.05 | 804,196 | 2,906 | 1.47 | ||||||||||||||||||
| Total deposits (4) | 2,912,054 | 5,517 | 0.76 | 1,782,342 | 4,895 | 1.11 | ||||||||||||||||||
| Federal Home Loan Bank advances | 705,135 | 3,671 | 2.09 | 389,302 | 2,568 | 2.64 | ||||||||||||||||||
| Other borrowings | 58,765 | 169 | 1.16 | 8,667 | 40 | 1.85 | ||||||||||||||||||
| Total interest-bearing liabilities | 3,675,955 | 9,357 | 1.02 | % | 2,180,311 | 7,503 | 1.40 | % | ||||||||||||||||
|
Non-interest-bearing demand checking accounts (4) |
509,522 | 135,410 | ||||||||||||||||||||||
| Other liabilities | 40,676 | 25,753 | ||||||||||||||||||||||
| Total liabilities | 4,226,153 | 2,341,474 | ||||||||||||||||||||||
| Brookline Bancorp, Inc. stockholders’ equity | 631,871 | 497,112 | ||||||||||||||||||||||
| Noncontrolling interest in subsidiary | 3,562 | 2,642 | ||||||||||||||||||||||
| Total liabilities and equity | $ | 4,861,586 | $ | 2,841,228 | ||||||||||||||||||||
| Net interest income (tax equivalent basis)/interest rate spread (5) | 43,657 | 3.88 | % | 25,950 | 3.45 | % | ||||||||||||||||||
| Less adjustment of tax exempt income | 24 | 10 | ||||||||||||||||||||||
| Net interest income | $ | 43,634 | $ | 25,940 | ||||||||||||||||||||
| Net interest margin (6) | 4.08 | % | 3.74 | % | ||||||||||||||||||||
(1) Tax exempt income on debt securities, equity securities and revenue bonds included in commercial real estate loans is included on a tax equivalent basis.
(2) Average balances include unrealized gains (losses) on securities available for sale. Equity securities include marketable equity securities and restricted equity securities. Dividend payments may not be consistent and average yield on equity securities may vary from month to month.
(3) Loans on non-accrual status are included in the average balances.
(4) Including non-interest-bearing checking accounts, the average interest rate on total deposits was 0.89% and 1.02% in the three months ended March 31, 2012 and March 31, 2011, respectively.
(5) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
(6) Net interest margin represents net interest income (tax equivalent basis) divided by average interest-earning assets.
| BROOKLINE BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||
| Average Yields / Costs | ||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||
| March 31, 2012 | December 31, 2011 | |||||||||||||||||||||||
| Average | Average | Average | Average | |||||||||||||||||||||
| balance |
Interest (1) |
yield/cost | balance |
Interest (1) |
yield/cost | |||||||||||||||||||
| (Dollars in Thousands) | ||||||||||||||||||||||||
|
Assets |
||||||||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||||
| Short-term investments | $ | 50,810 | $ | 27 | 0.21 | % | $ | 73,791 | $ | 28 | 0.15 | % | ||||||||||||
| Debt securities (2) | 517,843 | 3,237 | 2.50 | 231,661 | 1,307 | 2.26 | ||||||||||||||||||
| Equity securities (2) | 55,943 | 108 | 0.78 | 40,137 | 64 | 0.63 | ||||||||||||||||||
| Commercial real estate loans (3) | 1,829,834 | 23,468 | 5.67 | 1,240,063 | 16,296 | 5.26 | ||||||||||||||||||
| Commercial and industrial loans (3) | 393,669 | 6,384 | 5.29 | 198,000 | 2,389 | 4.81 | ||||||||||||||||||
| Equipment financing (3) | 341,801 | 4,960 | 5.80 | 238,290 | 4,652 | 7.81 | ||||||||||||||||||
| Indirect automobile loans (3) | 574,926 | 6,247 | 4.37 | 573,102 | 6,722 | 4.65 | ||||||||||||||||||
| Residential mortgage loans (3) | 491,012 | 5,544 | 4.52 | 346,244 | 3,696 | 4.27 | ||||||||||||||||||
| Other consumer loans (3) | 273,561 | 3,040 | 6.29 | 79,924 | 800 | 3.98 | ||||||||||||||||||
| Total interest-earning assets | 4,529,398 | 53,015 | 4.91 | % | 3,021,211 | 35,954 | 4.75 | % | ||||||||||||||||
| Allowance for loan losses | (38,294 | ) | (31,230 | ) | ||||||||||||||||||||
| Non-interest earning assets | 370,481 | 195,477 | ||||||||||||||||||||||
| Total assets | $ | 4,861,586 | $ | 3,185,458 | ||||||||||||||||||||
|
Liabilities and Stockholders' Equity |
||||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||
| Deposits: | ||||||||||||||||||||||||
| NOW accounts | $ | 179,086 | $ | 53 | 0.12 | % | $ | 111,798 | 50 | 0.18 | % | |||||||||||||
| Savings accounts | 511,147 | 498 | 0.39 | 165,619 | 208 | 0.50 | ||||||||||||||||||
| Money market savings accounts | 1,143,545 | 2,152 | 0.76 | 917,712 | 1,960 | 0.85 | ||||||||||||||||||
| Certificates of deposit | 1,078,276 | 2,813 | 1.05 | 806,158 | 2,536 | 1.25 | ||||||||||||||||||
| Total deposits (4) | 2,912,054 | 5,517 | 0.76 | 2,001,287 | 4,754 | 0.94 | ||||||||||||||||||
| Federal Home Loan Bank advances | 705,135 | 3,671 | 2.09 | 420,874 | 2,602 | 2.45 | ||||||||||||||||||
| Other borrowings | 58,765 | 169 | 1.16 | 6,206 | 12 | 0.75 | ||||||||||||||||||
| Total interest-bearing liabilities | 3,675,955 | 9,357 | 1.02 | % | 2,428,367 | 7,367 | 1.20 | % | ||||||||||||||||
|
Non-interest-bearing demand checking accounts (4) |
509,522 | 223,359 | ||||||||||||||||||||||
| Other liabilities | 40,676 | 25,955 | ||||||||||||||||||||||
| Total liabilities | 4,226,153 | 2,677,682 | ||||||||||||||||||||||
| Brookline Bancorp, Inc. stockholders’ equity | 631,871 | 504,511 | ||||||||||||||||||||||
| Noncontrolling interest in subsidiary | 3,562 | 3,265 | ||||||||||||||||||||||
| Total liabilities and equity | $ | 4,861,586 | $ | 3,185,458 | ||||||||||||||||||||
| Net interest income (tax equivalent basis)/interest rate spread (5) | 43,657 | 3.88 | % | 28,586 | 3.55 | % | ||||||||||||||||||
| Less adjustment of tax exempt income | 24 | 73 | ||||||||||||||||||||||
| Net interest income | $ | 43,634 | $ | 28,514 | ||||||||||||||||||||
| Net interest margin (6) | 4.08 | % | 3.78 | % | ||||||||||||||||||||
(1) Tax exempt income on debt securities, equity securities and revenue bonds included in commercial real estate loans is included on a tax equivalent basis.
(2) Average balances include unrealized gains (losses) on securities available for sale. Equity securities include marketable equity securities and restricted equity securities. Dividend payments may not be consistent and average yield on equity securities may vary from month to month.
(3) Loans on non-accrual status are included in the average balances.
(4) Including non-interest-bearing checking accounts, the average interest rate on total deposits was 0.89% and 0.86% in the three months ended March 31, 2012 and December 31, 2011, respectively.
(5) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
(6) Net interest margin represents net interest income (tax equivalent basis) divided by average interest-earning assets.
| BROOKLINE BANCORP, INC. AND SUBSIDIARIES | |||||||||
| Non-GAAP Financial Information | |||||||||
| Three Months Ended March 31, | |||||||||
| 2012 | 2011 | ||||||||
| Reconciliation Table - Non-GAAP Financial Information | (In Thousands Except Per Share Data) | ||||||||
| Net income attributable to Brookline Bancorp, Inc. | $ | 6,349 | $ | 7,267 | |||||
| Add: | |||||||||
| Merger related expenses (after-tax) | 3,972 | - | |||||||
| Net earnings from operations | $ | 10,321 | $ | 7,267 | |||||
| Earnings per common share: | |||||||||
| Basic | $ | 0.15 | $ | 0.12 | |||||
| Diluted | $ | 0.15 | $ | 0.12 | |||||
| Weighted average common shares outstanding during the period: | |||||||||
| Basic | 69,664,619 | 58,611,488 | |||||||
| Diluted | 69,665,873 | 58,618,309 | |||||||
| Brookline Bancorp, Inc. stockholders’ equity | $ | 597,531 | $ | 497,582 | |||||
| Less: | |||||||||
| Goodwill | 138,914 | 46,854 | |||||||
| Indentified intangible assets | 25,849 | 5,569 | |||||||
| Tangible stockholder's equity | $ | 432,768 | $ | 445,159 | |||||
| Common stock issued | 75,585,504 | 64,445,389 | |||||||
| Less: | |||||||||
| Treasury shares | 5,373,733 | 5,373,733 | |||||||
| Number of shares outstanding at end of year | 70,211,771 | 59,071,656 | |||||||
| Tangible book value per common share |
$ |
6.16 |
$ |
7.54 |
|||||
| At or for the Three Months Ended | ||||||||||||||||||||||||||
| Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||||||||||||||||||
| (Dollars in Thousands) | ||||||||||||||||||||||||||
| Brookline Bancorp, Inc. stockholders’ equity | $ | 597,531 | $ | 503,602 | $ | 501,890 | $ | 501,077 | $ | 497,582 | ||||||||||||||||
| Less: | ||||||||||||||||||||||||||
| Goodwill | 138,914 | 45,799 | 46,203 | 45,966 | 46,854 | |||||||||||||||||||||
| Indentified intangible assets | 25,849 | 5,214 | 5,591 | 6,034 | 5,569 | |||||||||||||||||||||
| Tangible stockholder's equity | 432,768 | 452,589 | 450,096 | 449,077 | 445,159 | |||||||||||||||||||||
| Total assets | 4,877,124 | 3,299,013 | 3,157,498 | 3,114,582 | 3,057,772 | |||||||||||||||||||||
| Less: | ||||||||||||||||||||||||||
| Goodwill | 138,914 | 45,799 | 46,203 | 45,966 | 46,854 | |||||||||||||||||||||
| Indentified intangible assets | 25,849 | 5,214 | 5,591 | 6,034 | 5,569 | |||||||||||||||||||||
| Tangible assets | $ | 4,712,361 | $ | 3,248,000 | $ | 3,105,704 | $ | 3,062,582 | $ | 3,005,349 | ||||||||||||||||
| Tangible stockholders’ equity to tangible assets | 9.18 | % | 13.93 | % | 14.49 | % | 14.66 | % | 14.81 | % | ||||||||||||||||
CONTACT:
Brookline Bancorp, Inc.
Julie A. Gerschick, 617-278-6406
Chief
Financial Officer and Treasurer
jgerschick@brkl.com