Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today
announced net income of $19.6 million, or $0.25 per basic and
diluted share, for the second quarter of 2020, compared to net loss
of $(17.3) million, or $(0.22) per basic and diluted share, for the
first quarter of 2020, and net income of $20.5 million, or $0.26
per basic and diluted share, for the second quarter of 2019.
Paul Perrault, President and Chief Executive
Officer of the Company noted, “The continued strength of our
Company’s core operations is reflected in this quarter’s
earnings. While we remain vigilant as we look to the future,
the business lines that are fundamental to our success continue to
operate effectively in these challenging times.”
BALANCE SHEET
Total assets at June 30, 2020 increased
$608.1 million to $9.1 billion from $8.5 billion at March 31,
2020, and increased $1.4 billion from $7.6 billion at June 30,
2019. At June 30, 2020, total loans and leases were $7.4
billion, representing an increase of $585.2 million from
March 31, 2020, and an increase of $902.4 million from
June 30, 2019, primarily driven by loans originated under the
Small Business Administration's Paycheck Protection Program
("PPP"). The Company funded $565.8 million of PPP loans in the
second quarter of 2020.
Total investment securities at June 30,
2020 increased $92.4 million to $856.5 million, as compared to
$764.1 million at March 31, 2020, and increased approximately
$265.7 million from $590.8 million at June 30, 2019. Total
cash and cash equivalents at June 30, 2020 decreased $85.9
million to $254.9 million, as compared to $340.8 million at
March 31, 2020, and increased $162.1 million from $92.8
million at June 30, 2019. As of June 30, 2020, total
investment securities and total cash and cash equivalents
represented 12.3 percent of total assets as compared to 13.1
percent and 9.0 percent as of March 31, 2020 and June 30,
2019, respectively.
Total deposits at June 30, 2020 increased
$550.3 million to $6.4 billion from $5.9 billion at March 31,
2020 and increased $817.7 million from $5.6 billion at
June 30, 2019.
Total borrowed funds at June 30, 2020
increased $114.9 million to $1.4 billion from $1.3 billion at
March 31, 2020 and increased $475.9 million from $930.8
million at June 30, 2019.
The ratio of stockholders’ equity to total
assets was 10.21 percent at June 30, 2020, as compared to
10.78 percent at March 31, 2020, and 12.03 percent at
June 30, 2019. The ratio of tangible stockholders’ equity to
tangible assets was 8.56 percent at June 30, 2020, as compared
to 9.02 percent at March 31, 2020, and 10.08 percent at
June 30, 2019. Tangible book value per share increased $0.18
from $9.49 at March 31, 2020 to $9.67 at June 30, 2020,
compared to $9.45 at June 30, 2019.
NET INTEREST INCOME
Net interest income increased $2.6 million to
$64.3 million during the second quarter of 2020 from $61.7 million
at the quarter ended March 31, 2020. The net interest margin
decreased 22 basis points to 3.09 percent for the three months
ended June 30, 2020.
NON-INTEREST INCOME
Total non-interest income for the quarter ended
June 30, 2020 decreased $3.1 million to $6.2 million from $9.3
million for the quarter ended March 31, 2020. The decrease was
primarily driven by decreases of $0.5 million in deposit fees, $0.7
million in loan level derivative income, net, $0.7 million in gain
on investment securities, net and $1.2 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 provision for credit
losses of $5.3 million for the quarter ended June 30,
2020, compared to $54.1 million for the quarter ended
March 31, 2020. Asset quality was consistent during the second
quarter and the increase in provision was primarily driven by the
forecasted economic effect of the COVID-19 pandemic.
Total net charge-offs for the second quarter of
2020 were $1.4 million compared to $2.2 million in the first
quarter of 2020. The ratio of net loan and lease charge-offs to
average loans and leases on an annualized basis decreased to 8
basis points for the second quarter of 2020 from 13 basis points
for the first quarter of 2020.
The allowance for loan and lease losses
represented 1.61 percent of total loans and leases at June 30,
2020, compared to 1.66 percent at March 31, 2020, and 0.90
percent at June 30, 2019. Excluding PPP loans, the allowance
for loan losses and lease losses represents 1.75 percent coverage
at June 30, 2020 compared to 1.66 percent at March 31, 2020.
NON-INTEREST EXPENSE
Non-interest expense for the quarter ended
June 30, 2020 decreased $1.6 million to $39.1 million from
$40.7 million for the quarter ended March 31, 2020. The
decrease was primarily driven by decreases of $0.6 million in
compensation and employee benefits expense, $0.5 million in
equipment and data processing expense, and $0.5 million in
professional services expense.
PROVISION FOR INCOME TAXES
The effective tax rate was 24.9 percent and a
negative 2.2 percent for the three and six months ended
June 30, 2020 compared to 27.5 percent for the three months
ended March 31, 2020 and 24.9 percent and 24.1 percent for the
three and six months ended June 30, 2019.
RETURNS ON AVERAGE ASSETS AND AVERAGE
EQUITY
The annualized return on average assets
increased to 0.88 percent during the second quarter 2020 from a
negative 0.87 percent for the first quarter of 2020.
The annualized return on average stockholders'
equity increased to 8.45 percent during the second quarter of 2020
from a negative 7.30 percent for the first quarter of 2020. The
annualized return on average tangible stockholders’ equity
increased to 10.28 percent for the second quarter of 2020 from a
negative 8.84 percent for the first quarter of 2020.
ASSET QUALITY
The ratio of nonperforming loans and leases to
total loans and leases was 0.56 percent at June 30, 2020, a
decrease from 0.57 percent at March 31, 2020. Nonperforming
loans and leases increased $2.2 million to $41.3 million at
June 30, 2020 from $39.1 million at March 31, 2020. The
ratio of nonperforming assets to total assets was 0.47 percent at
June 30, 2020, a decrease from 0.49 percent at March 31,
2020. Nonperforming assets increased $1.6 million to $42.8 million
at June 30, 2020 from $41.1 million at March 31,
2020.
From March 1, 2020 through the earlier of
December 31, 2020 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 June 30, 2020, the banks have granted 5,366
short-term deferments on loan balances of $1.2 billion, which
represented 16 percent of total loan balances.
DIVIDEND DECLARED
The Company’s Board of Directors approved a
dividend of $0.115 per share for the quarter ended June 30,
2020. The dividend will be paid on August 21, 2020 to stockholders
of record on August 7, 2020.
CONFERENCE CALL
The Company will conduct a conference
call/webcast at 1:30 PM Eastern Daylight Time on Thursday, July 23,
2020 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) or by visiting
https://services.choruscall.com/links/brkl200723.html. 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 10145885. 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 $9.1 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
operates; the possibility that future credit losses may be higher
than currently expected; 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, the allowance for loan and lease
losses related to originated loans and leases as a percentage of
originated loans and leases, tangible book value per common share,
tangible stockholders’ equity to tangible assets, return on average
tangible assets (annualized) and return on average tangible
stockholders' equity (annualized). These non-GAAP financial
measures provide information for investors to effectively analyze
financial trends of ongoing business activities, and to enhance
comparability with peers across the financial services sector. A
detailed reconciliation table of the Company's GAAP to the non-GAAP
measures is attached.
INVESTOR RELATIONS:
Contact: |
|
Carl M. CarlsonBrookline Bancorp, Inc.Chief Financial Officer(617)
425-5331ccarlson@brkl.com |
|
|
|
BROOKLINE
BANCORP, INC. AND SUBSIDIARIES |
Selected
Financial Highlights (Unaudited) |
|
|
At and for the Three Months Ended |
|
June 30, 2020 |
|
March 31, 2020 |
|
December 31, 2019 |
|
September 30, 2019 |
|
June 30, 2019 |
|
(Dollars In
Thousands Except per Share Data) |
Earnings Data: |
|
|
|
|
|
|
|
|
|
Net interest income |
$ |
64,288 |
|
|
$ |
61,712 |
|
|
$ |
63,931 |
|
|
$ |
63,236 |
|
|
$ |
63,134 |
|
Provision for credit losses |
|
5,347 |
|
|
|
54,114 |
|
|
|
3,602 |
|
|
|
871 |
|
|
|
3,757 |
|
Non-interest income |
|
6,235 |
|
|
|
9,328 |
|
|
|
7,756 |
|
|
|
7,929 |
|
|
|
7,478 |
|
Non-interest expense |
|
39,109 |
|
|
|
40,748 |
|
|
|
38,815 |
|
|
|
40,191 |
|
|
|
39,604 |
|
Income (loss) before provision for income taxes |
|
26,067 |
|
|
|
(23,822 |
) |
|
|
29,270 |
|
|
|
30,103 |
|
|
|
27,251 |
|
Net income (loss) attributable to Brookline Bancorp, Inc. |
|
19,571 |
|
|
|
(17,276 |
) |
|
|
22,183 |
|
|
|
22,596 |
|
|
|
20,471 |
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios: |
|
|
|
|
|
|
|
|
|
Net interest margin (1) |
|
3.09 |
% |
|
|
3.31 |
% |
|
|
3.43 |
% |
|
|
3.45 |
% |
|
|
3.55 |
% |
Interest-rate spread (1) |
|
2.75 |
% |
|
|
2.91 |
% |
|
|
3.05 |
% |
|
|
3.06 |
% |
|
|
3.13 |
% |
Return on average assets (annualized) |
|
0.88 |
% |
|
|
(0.87 |
)% |
|
|
1.13 |
% |
|
|
1.17 |
% |
|
|
1.08 |
% |
Return on average tangible assets (annualized) (non-GAAP) |
|
0.90 |
% |
|
|
(0.89 |
)% |
|
|
1.15 |
% |
|
|
1.19 |
% |
|
|
1.11 |
% |
Return on average stockholders' equity (annualized) |
|
8.45 |
% |
|
|
(7.30 |
)% |
|
|
9.42 |
% |
|
|
9.74 |
% |
|
|
8.98 |
% |
Return on average tangible stockholders' equity (annualized)
(non-GAAP) |
|
10.28 |
% |
|
|
(8.84 |
)% |
|
|
11.42 |
% |
|
|
11.85 |
% |
|
|
10.98 |
% |
Efficiency ratio (2) |
|
55.46 |
% |
|
|
57.36 |
% |
|
|
54.15 |
% |
|
|
56.48 |
% |
|
|
56.09 |
% |
|
|
|
|
|
|
|
|
|
|
Per
Common Share Data: |
|
|
|
|
|
|
|
|
|
Net income (loss) — Basic |
$ |
0.25 |
|
|
$ |
(0.22 |
) |
|
$ |
0.28 |
|
|
$ |
0.28 |
|
|
$ |
0.26 |
|
Net income (loss) — Diluted |
|
0.25 |
|
|
|
(0.22 |
) |
|
|
0.28 |
|
|
|
0.28 |
|
|
|
0.26 |
|
Cash dividends declared |
|
0.115 |
|
|
|
0.115 |
|
|
|
0.115 |
|
|
|
0.115 |
|
|
|
0.110 |
|
Book value per share (end of period) |
|
11.75 |
|
|
|
11.57 |
|
|
|
11.87 |
|
|
|
11.70 |
|
|
|
11.53 |
|
Tangible book value per share (end of period) (non-GAAP) |
|
9.67 |
|
|
|
9.49 |
|
|
|
9.80 |
|
|
|
9.63 |
|
|
|
9.45 |
|
Stock price (end of period) |
|
10.08 |
|
|
|
11.28 |
|
|
|
16.46 |
|
|
|
14.73 |
|
|
|
15.38 |
|
Balance Sheet: |
|
|
|
|
|
|
|
|
|
Total assets |
$ |
9,069,667 |
|
|
$ |
8,461,591 |
|
|
$ |
7,856,853 |
|
|
$ |
7,878,436 |
|
|
$ |
7,636,980 |
|
Total loans and leases |
|
7,407,697 |
|
|
|
6,822,527 |
|
|
|
6,737,816 |
|
|
|
6,646,821 |
|
|
|
6,505,329 |
|
Total deposits |
|
6,440,233 |
|
|
|
5,889,938 |
|
|
|
5,830,072 |
|
|
|
5,729,339 |
|
|
|
5,622,493 |
|
Brookline Bancorp, Inc. stockholders’ equity |
|
926,413 |
|
|
|
912,568 |
|
|
|
945,606 |
|
|
|
932,311 |
|
|
|
918,468 |
|
|
|
|
|
|
|
|
|
|
|
Asset Quality: |
|
|
|
|
|
|
|
|
|
Nonperforming assets |
$ |
42,754 |
|
|
$ |
41,122 |
|
|
$ |
22,092 |
|
|
$ |
23,760 |
|
|
$ |
23,267 |
|
Nonperforming assets as a percentage of total assets |
|
0.47 |
% |
|
|
0.49 |
% |
|
|
0.28 |
% |
|
|
0.30 |
% |
|
|
0.30 |
% |
Allowance for loan and lease losses |
$ |
119,553 |
|
|
$ |
113,181 |
|
|
$ |
61,082 |
|
|
$ |
59,135 |
|
|
$ |
58,635 |
|
Allowance for loan and lease losses as a percentage of total loans
and leases |
|
1.61 |
% |
|
|
1.66 |
% |
|
|
0.91 |
% |
|
|
0.89 |
% |
|
|
0.90 |
% |
Net loan and lease charge-offs |
$ |
1,383 |
|
|
$ |
2,234 |
|
|
$ |
1,622 |
|
|
$ |
366 |
|
|
$ |
3,082 |
|
Net loan and lease charge-offs as a percentage of average loans and
leases (annualized) |
|
0.08 |
% |
|
|
0.13 |
% |
|
|
0.10 |
% |
|
|
0.02 |
% |
|
|
0.19 |
% |
|
|
|
|
|
|
|
|
|
|
Capital Ratios: |
|
|
|
|
|
|
|
|
|
Stockholders’ equity to total assets |
|
10.21 |
% |
|
|
10.78 |
% |
|
|
12.04 |
% |
|
|
11.83 |
% |
|
|
12.03 |
% |
Tangible stockholders’ equity to tangible assets (non-GAAP) |
|
8.56 |
% |
|
|
9.02 |
% |
|
|
10.15 |
% |
|
|
9.94 |
% |
|
|
10.08 |
% |
|
|
|
|
|
|
|
|
|
|
(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) |
|
June 30, 2020 |
|
March 31, 2020 |
|
December 31, 2019 |
|
September 30, 2019 |
|
June 30, 2019 |
ASSETS |
(In Thousands Except
Share Data) |
Cash and due from banks |
$ |
38,522 |
|
|
$ |
86,996 |
|
|
$ |
33,589 |
|
|
$ |
93,841 |
|
|
$ |
46,532 |
|
Short-term
investments |
|
216,394 |
|
|
|
253,772 |
|
|
|
44,201 |
|
|
|
84,689 |
|
|
|
46,264 |
|
Total cash and cash equivalents |
|
254,916 |
|
|
|
340,768 |
|
|
|
77,790 |
|
|
|
178,530 |
|
|
|
92,796 |
|
Investment
securities available-for-sale |
|
854,505 |
|
|
|
761,539 |
|
|
|
498,995 |
|
|
|
467,339 |
|
|
|
482,497 |
|
Investment
securities held-to-maturity |
|
— |
|
|
|
— |
|
|
|
86,780 |
|
|
|
95,163 |
|
|
|
103,572 |
|
Equity
securities held-for-trading |
|
1,992 |
|
|
|
2,558 |
|
|
|
3,581 |
|
|
|
4,581 |
|
|
|
4,698 |
|
Total investment securities |
|
856,497 |
|
|
|
764,097 |
|
|
|
589,356 |
|
|
|
567,083 |
|
|
|
590,767 |
|
Loans and
leases held-for-sale |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,575 |
|
Loans and
leases: |
|
|
|
|
|
|
|
|
|
Commercial real estate loans |
|
3,837,703 |
|
|
|
3,762,158 |
|
|
|
3,669,222 |
|
|
|
3,589,451 |
|
|
|
3,493,554 |
|
Commercial loans and leases |
|
2,361,463 |
|
|
|
1,826,866 |
|
|
|
1,838,748 |
|
|
|
1,850,388 |
|
|
|
1,826,336 |
|
Consumer loans |
|
1,208,531 |
|
|
|
1,233,503 |
|
|
|
1,229,846 |
|
|
|
1,206,982 |
|
|
|
1,185,439 |
|
Total loans and leases |
|
7,407,697 |
|
|
|
6,822,527 |
|
|
|
6,737,816 |
|
|
|
6,646,821 |
|
|
|
6,505,329 |
|
Allowance
for loan and lease losses |
|
(119,553 |
) |
|
|
(113,181 |
) |
|
|
(61,082 |
) |
|
|
(59,135 |
) |
|
|
(58,635 |
) |
Net loans and leases |
|
7,288,144 |
|
|
|
6,709,346 |
|
|
|
6,676,734 |
|
|
|
6,587,686 |
|
|
|
6,446,694 |
|
Restricted
equity securities |
|
71,638 |
|
|
|
68,472 |
|
|
|
53,818 |
|
|
|
57,896 |
|
|
|
55,270 |
|
Premises and
equipment, net of accumulated depreciation |
|
73,127 |
|
|
|
73,786 |
|
|
|
74,350 |
|
|
|
75,229 |
|
|
|
75,373 |
|
Right-of-use
asset operating leases |
|
24,343 |
|
|
|
24,789 |
|
|
|
24,876 |
|
|
|
26,216 |
|
|
|
25,928 |
|
Deferred tax
asset |
|
42,683 |
|
|
|
38,141 |
|
|
|
25,017 |
|
|
|
25,204 |
|
|
|
25,629 |
|
Goodwill |
|
160,427 |
|
|
|
160,427 |
|
|
|
160,427 |
|
|
|
160,427 |
|
|
|
160,427 |
|
Identified
intangible assets, net of accumulated amortization |
|
3,775 |
|
|
|
4,087 |
|
|
|
4,423 |
|
|
|
4,843 |
|
|
|
5,264 |
|
Other real
estate owned and repossessed assets |
|
1,454 |
|
|
|
2,038 |
|
|
|
2,631 |
|
|
|
2,132 |
|
|
|
1,966 |
|
Other
assets |
|
292,663 |
|
|
|
275,640 |
|
|
|
167,431 |
|
|
|
193,190 |
|
|
|
155,291 |
|
Total assets |
$ |
9,069,667 |
|
|
$ |
8,461,591 |
|
|
$ |
7,856,853 |
|
|
$ |
7,878,436 |
|
|
$ |
7,636,980 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
Demand checking accounts |
$ |
1,603,037 |
|
|
$ |
1,175,329 |
|
|
$ |
1,141,578 |
|
|
$ |
1,106,684 |
|
|
$ |
1,042,854 |
|
NOW accounts |
|
417,622 |
|
|
|
361,854 |
|
|
|
371,380 |
|
|
|
340,321 |
|
|
|
340,082 |
|
Savings accounts |
|
657,758 |
|
|
|
653,026 |
|
|
|
613,467 |
|
|
|
604,481 |
|
|
|
585,322 |
|
Money market accounts |
|
1,809,868 |
|
|
|
1,676,092 |
|
|
|
1,682,005 |
|
|
|
1,666,231 |
|
|
|
1,669,782 |
|
Certificate of deposit accounts |
|
1,951,948 |
|
|
|
2,023,637 |
|
|
|
2,021,642 |
|
|
|
2,011,622 |
|
|
|
1,984,453 |
|
Total deposits |
|
6,440,233 |
|
|
|
5,889,938 |
|
|
|
5,830,072 |
|
|
|
5,729,339 |
|
|
|
5,622,493 |
|
Borrowed
funds: |
|
|
|
|
|
|
|
|
|
Advances from the FHLBB |
|
1,267,570 |
|
|
|
1,137,431 |
|
|
|
758,469 |
|
|
|
854,481 |
|
|
|
791,559 |
|
Subordinated debentures and notes |
|
83,668 |
|
|
|
83,630 |
|
|
|
83,591 |
|
|
|
83,551 |
|
|
|
83,512 |
|
Other borrowed funds |
|
55,431 |
|
|
|
70,743 |
|
|
|
60,689 |
|
|
|
48,373 |
|
|
|
55,693 |
|
Total borrowed funds |
|
1,406,669 |
|
|
|
1,291,804 |
|
|
|
902,749 |
|
|
|
986,405 |
|
|
|
930,764 |
|
Operating
lease liabilities |
|
24,343 |
|
|
|
24,789 |
|
|
|
24,876 |
|
|
|
26,216 |
|
|
|
25,928 |
|
Mortgagors’
escrow accounts |
|
6,467 |
|
|
|
7,441 |
|
|
|
7,232 |
|
|
|
7,072 |
|
|
|
6,823 |
|
Reserve for
unfunded credits |
|
14,816 |
|
|
|
17,222 |
|
|
|
1,880 |
|
|
|
1,847 |
|
|
|
1,841 |
|
Accrued
expenses and other liabilities |
|
250,726 |
|
|
|
317,829 |
|
|
|
144,438 |
|
|
|
195,246 |
|
|
|
130,663 |
|
Total liabilities |
|
8,143,254 |
|
|
|
7,549,023 |
|
|
|
6,911,247 |
|
|
|
6,946,125 |
|
|
|
6,718,512 |
|
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 |
|
738,155 |
|
|
|
737,422 |
|
|
|
736,601 |
|
|
|
735,928 |
|
|
|
737,584 |
|
Retained earnings, partially restricted |
|
237,808 |
|
|
|
227,359 |
|
|
|
265,376 |
|
|
|
252,435 |
|
|
|
238,625 |
|
Accumulated other comprehensive income (loss) |
|
19,538 |
|
|
|
16,947 |
|
|
|
2,283 |
|
|
|
2,775 |
|
|
|
1,141 |
|
Treasury stock, at cost; |
|
|
|
|
|
|
|
|
|
5,859,708, 5,862,811, 5,003,127, 5,003,127, and 5,025,764 shares,
respectively |
|
(69,572 |
) |
|
|
(69,617 |
) |
|
|
(59,073 |
) |
|
|
(59,176 |
) |
|
|
(59,199 |
) |
Unallocated common stock held by the Employee Stock Ownership
Plan; |
|
|
|
|
|
|
|
|
|
65,334, 72,441 79,548, 92,337, and 98,208 shares, respectively |
|
(368 |
) |
|
|
(395 |
) |
|
|
(433 |
) |
|
|
(503 |
) |
|
|
(535 |
) |
Total stockholders' equity |
|
926,413 |
|
|
|
912,568 |
|
|
|
945,606 |
|
|
|
932,311 |
|
|
|
918,468 |
|
Total liabilities and stockholders' equity |
$ |
9,069,667 |
|
|
$ |
8,461,591 |
|
|
$ |
7,856,853 |
|
|
$ |
7,878,436 |
|
|
$ |
7,636,980 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BROOKLINE
BANCORP, INC. AND SUBSIDIARIES |
Consolidated
Statements of Income (Unaudited) |
|
Three Months Ended |
|
June 30, 2020 |
|
March 31, 2020 |
|
December 31, 2019 |
|
September 30, 2019 |
|
June 30, 2019 |
|
(In Thousands Except
Share Data) |
Interest and
dividend income: |
|
|
|
|
|
|
|
|
|
Loans and leases |
$ |
77,416 |
|
$ |
79,559 |
|
|
$ |
83,309 |
|
$ |
83,566 |
|
|
$ |
82,798 |
Debt securities |
|
3,701 |
|
|
2,976 |
|
|
|
2,910 |
|
|
2,977 |
|
|
|
3,158 |
Marketable and restricted equity securities |
|
908 |
|
|
778 |
|
|
|
813 |
|
|
876 |
|
|
|
877 |
Short-term investments |
|
99 |
|
|
209 |
|
|
|
418 |
|
|
487 |
|
|
|
351 |
Total interest and dividend income |
|
82,124 |
|
|
83,522 |
|
|
|
87,450 |
|
|
87,906 |
|
|
|
87,184 |
Interest
expense: |
|
|
|
|
|
|
|
|
|
Deposits |
|
12,778 |
|
|
16,240 |
|
|
|
17,655 |
|
|
18,300 |
|
|
|
17,712 |
Borrowed funds |
|
5,058 |
|
|
5,570 |
|
|
|
5,864 |
|
|
6,370 |
|
|
|
6,338 |
Total interest expense |
|
17,836 |
|
|
21,810 |
|
|
|
23,519 |
|
|
24,670 |
|
|
|
24,050 |
Net interest
income |
|
64,288 |
|
|
61,712 |
|
|
|
63,931 |
|
|
63,236 |
|
|
|
63,134 |
Provision
for credit losses |
|
5,347 |
|
|
54,114 |
|
|
|
3,602 |
|
|
871 |
|
|
|
3,757 |
Net interest income after provision for credit losses |
|
58,941 |
|
|
7,598 |
|
|
|
60,329 |
|
|
62,365 |
|
|
|
59,377 |
Non-interest
income: |
|
|
|
|
|
|
|
|
|
Deposit fees |
|
1,929 |
|
|
2,458 |
|
|
|
2,710 |
|
|
2,710 |
|
|
|
2,680 |
Loan fees |
|
513 |
|
|
550 |
|
|
|
567 |
|
|
719 |
|
|
|
398 |
Loan level derivative income, net |
|
1,440 |
|
|
2,156 |
|
|
|
2,494 |
|
|
2,251 |
|
|
|
1,772 |
Gain (loss) on investment securities, net |
|
586 |
|
|
1,330 |
|
|
|
133 |
|
|
(116 |
) |
|
|
357 |
Gain on sales of loans and leases held-for-sale |
|
299 |
|
|
120 |
|
|
|
309 |
|
|
550 |
|
|
|
561 |
Other |
|
1,468 |
|
|
2,714 |
|
|
|
1,543 |
|
|
1,815 |
|
|
|
1,710 |
Total non-interest income |
|
6,235 |
|
|
9,328 |
|
|
|
7,756 |
|
|
7,929 |
|
|
|
7,478 |
Non-interest
expense: |
|
|
|
|
|
|
|
|
|
Compensation and employee benefits |
|
24,619 |
|
|
25,219 |
|
|
|
23,987 |
|
|
24,871 |
|
|
|
23,953 |
Occupancy |
|
3,825 |
|
|
3,953 |
|
|
|
4,102 |
|
|
3,895 |
|
|
|
3,752 |
Equipment and data processing |
|
4,155 |
|
|
4,703 |
|
|
|
4,601 |
|
|
4,749 |
|
|
|
4,641 |
Professional services |
|
1,056 |
|
|
1,651 |
|
|
|
1,120 |
|
|
1,083 |
|
|
|
1,087 |
FDIC insurance |
|
858 |
|
|
378 |
|
|
|
53 |
|
|
54 |
|
|
|
745 |
Advertising and marketing |
|
1,017 |
|
|
1,075 |
|
|
|
828 |
|
|
1,035 |
|
|
|
1,112 |
Amortization of identified intangible assets |
|
311 |
|
|
336 |
|
|
|
420 |
|
|
421 |
|
|
|
420 |
Merger and restructuring expense |
|
— |
|
|
— |
|
|
|
— |
|
|
1,125 |
|
|
|
— |
Other |
|
3,268 |
|
|
3,433 |
|
|
|
3,704 |
|
|
2,958 |
|
|
|
3,894 |
Total non-interest expense |
|
39,109 |
|
|
40,748 |
|
|
|
38,815 |
|
|
40,191 |
|
|
|
39,604 |
Income
(loss) before provision for income taxes |
|
26,067 |
|
|
(23,822 |
) |
|
|
29,270 |
|
|
30,103 |
|
|
|
27,251 |
Provision
(benefit) for income taxes |
|
6,496 |
|
|
(6,546 |
) |
|
|
7,087 |
|
|
7,507 |
|
|
|
6,780 |
Net income (loss) attributable to Brookline Bancorp, Inc. |
$ |
19,571 |
|
$ |
(17,276 |
) |
|
$ |
22,183 |
|
$ |
22,596 |
|
|
$ |
20,471 |
Earnings per
common share: |
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.25 |
|
$ |
(0.22 |
) |
|
$ |
0.28 |
|
$ |
0.28 |
|
|
$ |
0.26 |
Diluted |
$ |
0.25 |
|
$ |
(0.22 |
) |
|
$ |
0.28 |
|
$ |
0.28 |
|
|
$ |
0.26 |
Weighted average common shares outstanding during the period: |
|
|
|
|
|
|
|
|
Basic |
|
78,849,282 |
|
|
79,481,462 |
|
|
|
79,682,724 |
|
|
79,700,403 |
|
|
|
79,669,922 |
Diluted |
|
79,015,274 |
|
|
79,665,774 |
|
|
|
79,845,447 |
|
|
79,883,510 |
|
|
|
79,886,292 |
Dividends
paid per common share |
$ |
0.115 |
|
$ |
0.115 |
|
|
$ |
0.115 |
|
$ |
0.110 |
|
|
$ |
0.110 |
|
|
|
|
|
|
|
|
|
|
BROOKLINE
BANCORP, INC. AND SUBSIDIARIES |
Consolidated
Statements of Income (Unaudited) |
|
|
|
Six Months Ended June 30, |
|
2020 |
|
2019 |
|
(In Thousands Except
Share Data) |
Interest and
dividend income: |
|
|
|
Loans and leases |
$ |
156,975 |
|
|
$ |
163,470 |
Debt securities |
|
6,677 |
|
|
|
6,394 |
Marketable and restricted equity securities |
|
1,686 |
|
|
|
1,788 |
Short-term investments |
|
308 |
|
|
|
618 |
Total interest and dividend income |
|
165,646 |
|
|
|
172,270 |
Interest
expense: |
|
|
|
Deposits |
|
29,018 |
|
|
|
33,660 |
Borrowed funds |
|
10,628 |
|
|
|
12,477 |
Total interest expense |
|
39,646 |
|
|
|
46,137 |
Net interest
income |
|
126,000 |
|
|
|
126,133 |
Provision
for credit losses |
|
59,461 |
|
|
|
5,110 |
Net interest income after provision for credit losses |
|
66,539 |
|
|
|
121,023 |
Non-interest
income: |
|
|
|
Deposit Fees |
|
4,387 |
|
|
|
5,203 |
Loan Fees |
|
1,063 |
|
|
|
811 |
Loan level derivative income, net |
|
3,596 |
|
|
|
3,517 |
Gain on investment securities, net |
|
1,916 |
|
|
|
491 |
Gain on sales of loans and leases held-for-sale |
|
419 |
|
|
|
850 |
Other |
|
4,182 |
|
|
|
3,236 |
Total non-interest income |
|
15,563 |
|
|
|
14,108 |
Non-interest
expense: |
|
|
|
Compensation and employee benefits |
|
49,838 |
|
|
|
47,696 |
Occupancy |
|
7,778 |
|
|
|
7,699 |
Equipment and data processing |
|
8,858 |
|
|
|
9,302 |
Professional services |
|
2,707 |
|
|
|
2,163 |
FDIC insurance |
|
1,236 |
|
|
|
1,338 |
Advertising and marketing |
|
2,092 |
|
|
|
2,181 |
Amortization of identified intangible assets |
|
647 |
|
|
|
822 |
Other |
|
6,701 |
|
|
|
7,274 |
Total non-interest expense |
|
79,857 |
|
|
|
78,475 |
Income
before provision for income taxes |
|
2,245 |
|
|
|
56,656 |
(Benefit)
provision for income taxes |
|
(50 |
) |
|
|
13,675 |
Net income before noncontrolling interest in subsidiary |
|
2,295 |
|
|
|
42,981 |
Less net
income attributable to noncontrolling interest in subsidiary |
|
— |
|
|
|
43 |
Net income attributable to Brookline Bancorp, Inc. |
$ |
2,295 |
|
|
$ |
42,938 |
Earnings per
common share: |
|
|
|
Basic |
$ |
0.03 |
|
|
$ |
0.54 |
Diluted |
$ |
0.03 |
|
|
$ |
0.54 |
Weighted average common shares outstanding during the period: |
|
|
Basic |
|
79,165,372 |
|
|
|
79,664,284 |
Diluted |
|
79,340,524 |
|
|
|
79,859,572 |
Dividends
paid per common share |
$ |
0.230 |
|
|
$ |
0.215 |
|
|
|
|
BROOKLINE
BANCORP, INC. AND SUBSIDIARIES |
Asset
Quality Analysis (Unaudited) |
|
At and for the Three Months Ended |
|
June 30, 2020 |
|
March 31, 2020 |
|
December 31, 2019 |
|
September 30, 2019 |
|
June 30, 2019 |
|
(Dollars in
Thousands) |
NONPERFORMING ASSETS: |
|
|
|
|
|
|
|
|
|
Loans and
leases accounted for on a nonaccrual basis: |
|
|
|
|
|
|
|
|
|
Commercial real estate mortgage |
$ |
10,139 |
|
|
$ |
10,937 |
|
|
$ |
2,845 |
|
|
$ |
2,910 |
|
|
$ |
2,273 |
|
Multi-family mortgage |
|
— |
|
|
|
85 |
|
|
|
84 |
|
|
|
87 |
|
|
|
94 |
|
Total commercial real estate loans |
|
10,139 |
|
|
|
11,022 |
|
|
|
2,929 |
|
|
|
2,997 |
|
|
|
2,367 |
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
12,427 |
|
|
|
12,991 |
|
|
|
4,909 |
|
|
|
3,139 |
|
|
|
6,349 |
|
Equipment financing |
|
13,100 |
|
|
|
10,356 |
|
|
|
9,822 |
|
|
|
12,817 |
|
|
|
9,931 |
|
Condominium association |
|
190 |
|
|
|
203 |
|
|
|
151 |
|
|
|
163 |
|
|
|
170 |
|
Total commercial loans and leases |
|
25,717 |
|
|
|
23,550 |
|
|
|
14,882 |
|
|
|
16,119 |
|
|
|
16,450 |
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
|
4,157 |
|
|
|
3,446 |
|
|
|
753 |
|
|
|
1,605 |
|
|
|
1,642 |
|
Home equity |
|
1,278 |
|
|
|
1,059 |
|
|
|
896 |
|
|
|
904 |
|
|
|
835 |
|
Other consumer |
|
9 |
|
|
|
7 |
|
|
|
1 |
|
|
|
3 |
|
|
|
7 |
|
Total consumer loans |
|
5,444 |
|
|
|
4,512 |
|
|
|
1,650 |
|
|
|
2,512 |
|
|
|
2,484 |
|
|
|
|
|
|
|
|
|
|
|
Total nonaccrual loans and leases |
|
41,300 |
|
|
|
39,084 |
|
|
|
19,461 |
|
|
|
21,628 |
|
|
|
21,301 |
|
|
|
|
|
|
|
|
|
|
|
Other real
estate owned |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
201 |
|
|
|
957 |
|
Other
repossessed assets |
|
1,454 |
|
|
|
2,038 |
|
|
|
2,631 |
|
|
|
1,931 |
|
|
|
1,009 |
|
Total nonperforming assets |
$ |
42,754 |
|
|
$ |
41,122 |
|
|
$ |
22,092 |
|
|
$ |
23,760 |
|
|
$ |
23,267 |
|
|
|
|
|
|
|
|
|
|
|
Loans and
leases past due greater than 90 days and still accruing |
$ |
1,974 |
|
|
$ |
1,045 |
|
|
$ |
10,109 |
|
|
$ |
11,885 |
|
|
$ |
11,612 |
|
|
|
|
|
|
|
|
|
|
|
Troubled
debt restructurings on accrual |
|
10,172 |
|
|
|
16,480 |
|
|
|
17,076 |
|
|
|
22,233 |
|
|
|
27,761 |
|
Troubled
debt restructurings on nonaccrual |
|
5,972 |
|
|
|
5,819 |
|
|
|
6,104 |
|
|
|
5,763 |
|
|
|
8,431 |
|
Total troubled debt restructurings |
$ |
16,144 |
|
|
$ |
22,299 |
|
|
$ |
23,180 |
|
|
$ |
27,996 |
|
|
$ |
36,192 |
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans and leases as a percentage of total loans and
leases |
|
0.56 |
% |
|
|
0.57 |
% |
|
|
0.29 |
% |
|
|
0.33 |
% |
|
|
0.33 |
% |
Nonperforming assets as a percentage of total assets |
|
0.47 |
% |
|
|
0.49 |
% |
|
|
0.28 |
% |
|
|
0.30 |
% |
|
|
0.30 |
% |
|
|
|
|
|
|
|
|
|
|
PROVISION AND ALLOWANCE FOR LOAN AND LEASE
LOSSES: |
|
|
|
|
|
|
Allowance
for loan and lease losses at beginning of period |
$ |
113,181 |
|
|
$ |
61,082 |
|
|
$ |
59,135 |
|
|
$ |
58,635 |
|
|
$ |
58,041 |
|
CECL adjustment to retained earnings |
|
— |
|
|
|
6,632 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Charge-offs |
|
(1,803 |
) |
|
|
(2,539 |
) |
|
|
(1,894 |
) |
|
|
(1,190 |
) |
|
|
(3,412 |
) |
Recoveries |
|
420 |
|
|
|
305 |
|
|
|
272 |
|
|
|
824 |
|
|
|
330 |
|
Net charge-offs |
|
(1,383 |
) |
|
|
(2,234 |
) |
|
|
(1,622 |
) |
|
|
(366 |
) |
|
|
(3,082 |
) |
Provision for loan and lease losses excluding unfunded commitments
* |
|
7,755 |
|
|
|
47,701 |
|
|
|
3,569 |
|
|
|
866 |
|
|
|
3,676 |
|
Allowance for loan and lease losses at end of period |
$ |
119,553 |
|
|
$ |
113,181 |
|
|
$ |
61,082 |
|
|
$ |
59,135 |
|
|
$ |
58,635 |
|
|
|
|
|
|
|
|
|
|
|
Allowance
for loan and lease losses as a percentage of total loans and
leases |
|
1.61 |
% |
|
|
1.66 |
% |
|
|
0.91 |
% |
|
|
0.89 |
% |
|
|
0.90 |
% |
|
|
|
|
|
|
|
|
|
|
NET
CHARGE-OFFS: |
|
|
|
|
|
|
|
|
|
Commercial
real estate loans |
$ |
(94 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Commercial
loans and leases |
|
1,498 |
|
|
|
2,280 |
|
|
|
1,589 |
|
|
|
403 |
|
|
|
3,107 |
|
Consumer
loans |
|
(21 |
) |
|
|
(46 |
) |
|
|
33 |
|
|
|
(37 |
) |
|
|
(25 |
) |
Total net charge-offs |
$ |
1,383 |
|
|
$ |
2,234 |
|
|
$ |
1,622 |
|
|
$ |
366 |
|
|
$ |
3,082 |
|
|
|
|
|
|
|
|
|
|
|
Net loan and
lease charge-offs as a percentage of average loans and leases
(annualized) |
|
0.08 |
% |
|
|
0.13 |
% |
|
|
0.10 |
% |
|
|
0.02 |
% |
|
|
0.19 |
% |
|
|
|
|
|
|
|
|
|
|
*provision for loan and lease losses does not include provision
of $2.4 million and $6.4 million for credit losses on unfunded
commitments during the three months ended June 30, 2020 and March
31, 2020, respectively.
BROOKLINE BANCORP, INC. AND SUBSIDIARIES |
Average Yields / Costs (Unaudited) |
|
Three Months Ended |
|
June 30, 2020 |
|
March 31, 2020 |
|
June 30, 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) |
$ |
773,523 |
|
$ |
3,719 |
|
1.92 |
% |
|
$ |
605,885 |
|
$ |
3,024 |
|
2.00 |
% |
|
$ |
593,404 |
|
$ |
3,210 |
|
2.16 |
% |
Marketable and restricted equity securities (2) |
|
71,058 |
|
|
915 |
|
5.15 |
% |
|
|
58,881 |
|
|
786 |
|
5.33 |
% |
|
|
59,224 |
|
|
888 |
|
5.99 |
% |
Short-term investments |
|
245,577 |
|
|
99 |
|
0.16 |
% |
|
|
84,309 |
|
|
209 |
|
0.99 |
% |
|
|
44,634 |
|
|
351 |
|
3.14 |
% |
Total investments |
|
1,090,158 |
|
|
4,733 |
|
1.74 |
% |
|
|
749,075 |
|
|
4,019 |
|
2.15 |
% |
|
|
697,262 |
|
|
4,449 |
|
2.55 |
% |
Loans and Leases: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate loans (3) |
|
3,761,667 |
|
|
36,829 |
|
3.87 |
% |
|
|
3,697,011 |
|
|
40,468 |
|
4.33 |
% |
|
|
3,447,136 |
|
|
41,363 |
|
4.75 |
% |
Commercial loans (3) |
|
1,234,537 |
|
|
10,450 |
|
3.35 |
% |
|
|
783,309 |
|
|
8,328 |
|
4.21 |
% |
|
|
811,890 |
|
|
9,879 |
|
4.82 |
% |
Equipment financing (3) |
|
1,069,192 |
|
|
18,973 |
|
7.10 |
% |
|
|
1,052,846 |
|
|
18,946 |
|
7.20 |
% |
|
|
1,005,376 |
|
|
18,291 |
|
7.28 |
% |
Residential mortgage loans (3) |
|
814,431 |
|
|
8,068 |
|
3.96 |
% |
|
|
810,583 |
|
|
7,934 |
|
3.92 |
% |
|
|
774,533 |
|
|
8,186 |
|
4.23 |
% |
Other consumer loans (3) |
|
411,326 |
|
|
3,153 |
|
3.07 |
% |
|
|
417,815 |
|
|
3,955 |
|
3.79 |
% |
|
|
417,600 |
|
|
5,187 |
|
4.97 |
% |
Total loans and leases |
|
7,291,153 |
|
|
77,473 |
|
4.25 |
% |
|
|
6,761,564 |
|
|
79,631 |
|
4.71 |
% |
|
|
6,456,535 |
|
|
82,906 |
|
5.14 |
% |
Total interest-earning assets |
|
8,381,311 |
|
|
82,206 |
|
3.92 |
% |
|
|
7,510,639 |
|
|
83,650 |
|
4.46 |
% |
|
|
7,153,797 |
|
|
87,355 |
|
4.88 |
% |
Non-interest-earning assets |
|
488,229 |
|
|
|
|
|
|
455,187 |
|
|
|
|
|
|
417,599 |
|
|
|
|
Total assets |
$ |
8,869,540 |
|
|
|
|
|
$ |
7,965,826 |
|
|
|
|
|
$ |
7,571,396 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW accounts |
$ |
395,158 |
|
|
114 |
|
0.12 |
% |
|
$ |
359,641 |
|
|
116 |
|
0.13 |
% |
|
$ |
343,745 |
|
|
50 |
|
0.06 |
% |
Savings accounts |
|
663,782 |
|
|
357 |
|
0.22 |
% |
|
|
626,945 |
|
|
643 |
|
0.41 |
% |
|
|
602,333 |
|
|
737 |
|
0.49 |
% |
Money market accounts |
|
1,784,343 |
|
|
2,074 |
|
0.47 |
% |
|
|
1,678,649 |
|
|
4,241 |
|
1.02 |
% |
|
|
1,683,735 |
|
|
5,571 |
|
1.33 |
% |
Certificates of deposit |
|
2,019,195 |
|
|
10,233 |
|
2.04 |
% |
|
|
2,040,903 |
|
|
11,240 |
|
2.22 |
% |
|
|
1,950,704 |
|
|
11,354 |
|
2.33 |
% |
Total interest-bearing deposits |
|
4,862,478 |
|
|
12,778 |
|
1.06 |
% |
|
|
4,706,138 |
|
|
16,240 |
|
1.39 |
% |
|
|
4,580,517 |
|
|
17,712 |
|
1.55 |
% |
Borrowings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advances from the FHLBB |
|
1,102,079 |
|
|
3,751 |
|
1.35 |
% |
|
|
772,462 |
|
|
4,097 |
|
2.10 |
% |
|
|
761,651 |
|
|
4,825 |
|
2.51 |
% |
Subordinated debentures and notes |
|
83,647 |
|
|
1,263 |
|
6.04 |
% |
|
|
83,609 |
|
|
1,284 |
|
6.14 |
% |
|
|
83,490 |
|
|
1,305 |
|
6.25 |
% |
Other borrowed funds |
|
70,795 |
|
|
44 |
|
0.25 |
% |
|
|
91,052 |
|
|
189 |
|
0.84 |
% |
|
|
84,600 |
|
|
208 |
|
0.99 |
% |
Total borrowings |
|
1,256,521 |
|
|
5,058 |
|
1.59 |
% |
|
|
947,123 |
|
|
5,570 |
|
2.33 |
% |
|
|
929,741 |
|
|
6,338 |
|
2.70 |
% |
Total interest-bearing liabilities |
|
6,118,999 |
|
|
17,836 |
|
1.17 |
% |
|
|
5,653,261 |
|
|
21,810 |
|
1.55 |
% |
|
|
5,510,258 |
|
|
24,050 |
|
1.75 |
% |
Non-interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand checking accounts |
|
1,512,089 |
|
|
|
|
|
|
1,134,314 |
|
|
|
|
|
|
1,015,524 |
|
|
|
|
Other non-interest-bearing liabilities |
|
312,213 |
|
|
|
|
|
|
232,113 |
|
|
|
|
|
|
133,790 |
|
|
|
|
Total liabilities |
|
7,943,301 |
|
|
|
|
|
|
7,019,688 |
|
|
|
|
|
|
6,659,572 |
|
|
|
|
Stockholders’ equity |
|
926,239 |
|
|
|
|
|
|
946,138 |
|
|
|
|
|
|
911,824 |
|
|
|
|
Noncontrolling interest in subsidiary |
|
— |
|
|
|
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
|
Total liabilities and equity |
$ |
8,869,540 |
|
|
|
|
|
$ |
7,965,826 |
|
|
|
|
|
$ |
7,571,396 |
|
|
|
|
Net interest income (tax-equivalent basis) /Interest-rate spread
(4) |
|
|
|
64,370 |
|
2.75 |
% |
|
|
|
|
61,840 |
|
2.91 |
% |
|
|
|
|
63,305 |
|
3.13 |
% |
Less adjustment of tax-exempt income |
|
|
|
82 |
|
|
|
|
|
|
128 |
|
|
|
|
|
|
171 |
|
|
Net interest income |
|
|
$ |
64,288 |
|
|
|
|
|
$ |
61,712 |
|
|
|
|
|
$ |
63,134 |
|
|
Net interest margin (5) |
|
|
|
|
3.09 |
% |
|
|
|
|
|
3.31 |
% |
|
|
|
|
|
3.55 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Tax-exempt income on debt securities, equity securities and
revenue bonds included in commercial real estate loans is included
on a tax-equivalent basis. |
(2) Average balances include unrealized gains (losses) on
investment securities. Dividend payments may not be consistent and
average yield on equity securities may vary from month to
month. |
(3) Loans on nonaccrual status are included in the average
balances. |
(4) Interest rate spread represents the difference between the
yield on interest-earning assets and the cost of interest-bearing
liabilities. |
(5) Net interest margin represents net interest income
(tax-equivalent basis) divided by average interest-earning assets
on an actual/actual basis. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BROOKLINE BANCORP, INC. AND SUBSIDIARIES |
Average Yields / Costs (Unaudited) |
|
Six Months Ended |
|
June 30, 2020 |
|
June 30, 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) |
$ |
689,704 |
|
$ |
6,743 |
|
1.96 |
% |
|
$ |
600,758 |
|
$ |
6,499 |
|
2.16 |
% |
Marketable and restricted equity securities (2) |
|
64,968 |
|
|
1,701 |
|
5.24 |
% |
|
|
59,803 |
|
|
1,808 |
|
6.05 |
% |
Short-term investments |
|
164,943 |
|
|
308 |
|
0.37 |
% |
|
|
38,866 |
|
|
618 |
|
3.18 |
% |
Total investments |
|
919,615 |
|
|
8,752 |
|
1.90 |
% |
|
|
699,427 |
|
|
8,925 |
|
2.55 |
% |
Loans and Leases: |
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate loans (3) |
|
3,729,339 |
|
|
77,297 |
|
4.10 |
% |
|
|
3,412,051 |
|
|
81,382 |
|
4.74 |
% |
Commercial loans (3) |
|
1,008,923 |
|
|
18,778 |
|
3.68 |
% |
|
|
802,346 |
|
|
19,482 |
|
4.83 |
% |
Equipment financing (3) |
|
1,061,019 |
|
|
37,919 |
|
7.15 |
% |
|
|
996,832 |
|
|
36,276 |
|
7.28 |
% |
Residential mortgage loans (3) |
|
812,507 |
|
|
16,002 |
|
3.94 |
% |
|
|
776,419 |
|
|
16,309 |
|
4.20 |
% |
Other consumer loans (3) |
|
414,570 |
|
|
7,108 |
|
3.43 |
% |
|
|
412,914 |
|
|
10,238 |
|
4.99 |
% |
Total loans and leases |
|
7,026,358 |
|
|
157,104 |
|
4.47 |
% |
|
|
6,400,562 |
|
|
163,687 |
|
5.11 |
% |
Total interest-earning assets |
|
7,945,973 |
|
|
165,856 |
|
4.17 |
% |
|
|
7,099,989 |
|
|
172,612 |
|
4.86 |
% |
Non-interest-earning assets |
|
471,710 |
|
|
|
|
|
|
403,107 |
|
|
|
|
Total assets |
$ |
8,417,683 |
|
|
|
|
|
$ |
7,503,096 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
NOW accounts |
$ |
377,399 |
|
|
230 |
|
0.12 |
% |
|
$ |
338,983 |
|
|
192 |
|
0.11 |
% |
Savings accounts |
|
645,363 |
|
|
1,000 |
|
0.31 |
% |
|
|
614,307 |
|
|
1,334 |
|
0.44 |
% |
Money market accounts |
|
1,731,496 |
|
|
6,315 |
|
0.73 |
% |
|
|
1,679,988 |
|
|
10,846 |
|
1.30 |
% |
Certificates of deposit |
|
2,030,049 |
|
|
21,473 |
|
2.13 |
% |
|
|
1,897,901 |
|
|
21,288 |
|
2.26 |
% |
Total interest-bearing deposits |
|
4,784,307 |
|
|
29,018 |
|
1.22 |
% |
|
|
4,531,179 |
|
|
33,660 |
|
1.50 |
% |
Borrowings |
|
|
|
|
|
|
|
|
|
|
|
Advances from the FHLBB |
|
937,271 |
|
|
7,848 |
|
1.66 |
% |
|
|
758,613 |
|
|
9,435 |
|
2.47 |
% |
Subordinated debentures and notes |
|
83,628 |
|
|
2,547 |
|
6.09 |
% |
|
|
83,471 |
|
|
2,613 |
|
6.26 |
% |
Other borrowed funds |
|
80,924 |
|
|
233 |
|
0.58 |
% |
|
|
86,589 |
|
|
429 |
|
1.00 |
% |
Total borrowings |
|
1,101,823 |
|
|
10,628 |
|
1.91 |
% |
|
|
928,673 |
|
|
12,477 |
|
2.67 |
% |
Total interest-bearing liabilities |
|
5,886,130 |
|
|
39,646 |
|
1.35 |
% |
|
|
5,459,852 |
|
|
46,137 |
|
1.70 |
% |
Non-interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Demand checking accounts |
|
1,323,202 |
|
|
|
|
|
|
1,021,215 |
|
|
|
|
Other non-interest-bearing liabilities |
|
272,162 |
|
|
|
|
|
|
122,544 |
|
|
|
|
Total liabilities |
|
7,481,494 |
|
|
|
|
|
|
6,603,611 |
|
|
|
|
Brookline Bancorp, Inc. stockholders’ equity |
|
936,189 |
|
|
|
|
|
|
899,301 |
|
|
|
|
Noncontrolling interest in subsidiary |
|
— |
|
|
|
|
|
|
184 |
|
|
|
|
Total liabilities and equity |
$ |
8,417,683 |
|
|
|
|
|
$ |
7,503,096 |
|
|
|
|
Net interest income (tax-equivalent basis) /Interest-rate spread
(4) |
|
|
|
126,210 |
|
2.82 |
% |
|
|
|
|
126,475 |
|
3.16 |
% |
Less adjustment of tax-exempt income |
|
|
|
210 |
|
|
|
|
|
|
342 |
|
|
Net interest income |
|
|
$ |
126,000 |
|
|
|
|
|
$ |
126,133 |
|
|
Net interest margin (5) |
|
|
|
|
3.19 |
% |
|
|
|
|
|
3.59 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
(1) Tax-exempt income on debt securities, equity securities and
revenue bonds included in commercial real estate loans is included
on a tax-equivalent basis. |
(2) Average balances include unrealized gains (losses) on
investment securities. Dividend payments may not be consistent and
average yield on equity securities may vary from month to
month. |
(3) Loans on nonaccrual status are included in the average
balances. |
(4) Interest rate spread represents the difference between the
yield on interest-earning assets and the cost of interest-bearing
liabilities. |
(5) Net interest margin represents net interest income
(tax-equivalent basis) divided by average interest-earning assets
on an actual/actual basis. |
|
|
|
|
|
|
|
|
|
|
|
|
BROOKLINE
BANCORP, INC. AND SUBSIDIARIES |
Non-GAAP
Financial Information (Unaudited) |
|
|
|
At and for the Three Months Ended June 30, |
|
At and for the Six Months Ended June 30, |
|
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
Reconciliation Table - Non-GAAP Financial
Information |
|
(Dollars in
Thousands Except Share Data) |
|
|
|
|
|
|
|
|
|
Net income attributable to Brookline Bancorp, Inc. |
|
$ |
19,571 |
|
|
$ |
20,471 |
|
|
$ |
2,295 |
|
|
$ |
42,938 |
|
Less: |
|
|
|
|
|
|
|
|
|
Security gains (after-tax) |
|
|
440 |
|
|
|
268 |
|
|
|
1,958 |
|
|
|
373 |
|
Operating earnings |
|
|
$ |
19,131 |
|
|
$ |
20,203 |
|
|
$ |
337 |
|
|
$ |
42,565 |
|
|
|
|
|
|
|
|
|
|
|
Operating
earnings per common share: |
|
|
|
|
|
|
|
|
|
Basic |
|
|
$ |
0.24 |
|
|
$ |
0.25 |
|
|
$ |
— |
|
|
$ |
0.53 |
|
Diluted |
|
|
|
0.24 |
|
|
|
0.25 |
|
|
|
— |
|
|
|
0.53 |
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding during the period: |
|
|
|
|
|
|
|
|
Basic |
|
|
|
78,849,282 |
|
|
|
79,669,922 |
|
|
|
79,165,372 |
|
|
|
79,664,284 |
|
Diluted |
|
|
|
79,015,274 |
|
|
|
79,886,292 |
|
|
|
79,340,524 |
|
|
|
79,859,572 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets * |
|
|
0.88 |
% |
|
|
1.08 |
% |
|
|
0.05 |
% |
|
|
1.14 |
% |
Less: |
|
|
|
|
|
|
|
|
|
Security gains (after-tax) * |
|
|
0.02 |
% |
|
|
0.01 |
% |
|
|
0.04 |
% |
|
|
0.01 |
% |
Operating return on average assets * |
|
|
0.86 |
% |
|
|
1.07 |
% |
|
|
0.01 |
% |
|
|
1.13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average tangible assets * |
|
|
0.90 |
% |
|
|
1.11 |
% |
|
|
0.06 |
% |
|
|
1.17 |
% |
Less: |
|
|
|
|
|
|
|
|
|
Security gains (after-tax) * |
|
|
0.02 |
% |
|
|
0.02 |
% |
|
|
0.05 |
% |
|
|
0.01 |
% |
Operating return on average tangible assets * |
|
|
0.88 |
% |
|
|
1.09 |
% |
|
|
0.01 |
% |
|
|
1.16 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average stockholders' equity * |
|
|
8.45 |
% |
|
|
8.98 |
% |
|
|
0.49 |
% |
|
|
9.55 |
% |
Less: |
|
|
|
|
|
|
|
|
|
Security gains (after-tax) * |
|
|
0.19 |
% |
|
|
0.12 |
% |
|
|
0.42 |
% |
|
|
0.08 |
% |
Operating return on average stockholders' equity
* |
|
|
8.26 |
% |
|
|
8.86 |
% |
|
|
0.07 |
% |
|
|
9.47 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average tangible stockholders' equity * |
|
|
10.28 |
% |
|
|
10.98 |
% |
|
|
0.59 |
% |
|
|
11.71 |
% |
Less: |
|
|
|
|
|
|
|
|
|
Security gains (after-tax) * |
|
|
0.24 |
% |
|
|
0.15 |
% |
|
|
0.50 |
% |
|
|
0.10 |
% |
Operating return on average tangible stockholders' equity
* |
|
|
10.04 |
% |
|
|
10.83 |
% |
|
|
0.09 |
% |
|
|
11.61 |
% |
|
|
|
|
|
|
|
|
|
|
* Ratios at and for the three and six months ended are
annualized. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At and for the Three Months Ended |
|
June 30, 2020 |
|
March 31, 2020 |
|
December 31, 2019 |
|
September 30, 2019 |
|
June 30, 2019 |
|
(Dollars in
Thousands) |
|
|
|
|
|
|
|
|
|
|
Net income (loss), as reported |
$ |
19,571 |
|
|
$ |
(17,276 |
) |
|
$ |
22,183 |
|
|
$ |
22,596 |
|
|
$ |
20,471 |
|
|
|
|
|
|
|
|
|
|
|
Average
total assets |
$ |
8,869,540 |
|
|
$ |
7,965,826 |
|
|
$ |
7,860,593 |
|
|
$ |
7,746,492 |
|
|
$ |
7,571,396 |
|
Less:
Average goodwill and average identified intangible assets, net |
|
164,385 |
|
|
|
164,701 |
|
|
|
165,071 |
|
|
|
165,493 |
|
|
|
165,914 |
|
Average
tangible assets |
$ |
8,705,155 |
|
|
$ |
7,801,125 |
|
|
$ |
7,695,522 |
|
|
$ |
7,580,999 |
|
|
$ |
7,405,482 |
|
|
|
|
|
|
|
|
|
|
|
Return on average tangible assets
(annualized) |
|
0.90 |
% |
|
|
(0.89 |
)% |
|
|
1.15 |
% |
|
|
1.19 |
% |
|
|
1.11 |
% |
|
|
|
|
|
|
|
|
|
|
Average
total stockholders’ equity |
$ |
926,239 |
|
|
$ |
946,138 |
|
|
$ |
941,891 |
|
|
$ |
928,063 |
|
|
$ |
911,824 |
|
Less:
Average goodwill and average identified intangible assets, net |
|
164,385 |
|
|
|
164,701 |
|
|
|
165,071 |
|
|
|
165,493 |
|
|
|
165,914 |
|
Average
tangible stockholders’ equity |
$ |
761,854 |
|
|
$ |
781,437 |
|
|
$ |
776,820 |
|
|
$ |
762,570 |
|
|
$ |
745,910 |
|
|
|
|
|
|
|
|
|
|
|
Return on average tangible stockholders’ equity
(annualized) |
|
10.28 |
% |
|
|
(8.84 |
)% |
|
|
11.42 |
% |
|
|
11.85 |
% |
|
|
10.98 |
% |
|
|
|
|
|
|
|
|
|
|
Brookline
Bancorp, Inc. stockholders’ equity |
$ |
926,413 |
|
|
$ |
912,568 |
|
|
$ |
945,606 |
|
|
$ |
932,311 |
|
|
$ |
918,468 |
|
Less: |
|
|
|
|
|
|
|
|
|
Goodwill |
|
160,427 |
|
|
|
160,427 |
|
|
|
160,427 |
|
|
|
160,427 |
|
|
|
160,427 |
|
Identified intangible assets, net |
|
3,775 |
|
|
|
4,087 |
|
|
|
4,423 |
|
|
|
4,843 |
|
|
|
5,264 |
|
Tangible
stockholders' equity |
$ |
762,211 |
|
|
$ |
748,054 |
|
|
$ |
780,756 |
|
|
$ |
767,041 |
|
|
$ |
752,777 |
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
$ |
9,069,667 |
|
|
$ |
8,461,591 |
|
|
$ |
7,856,853 |
|
|
$ |
7,878,436 |
|
|
$ |
7,636,980 |
|
Less: |
|
|
|
|
|
|
|
|
|
Goodwill |
|
160,427 |
|
|
|
160,427 |
|
|
|
160,427 |
|
|
|
160,427 |
|
|
|
160,427 |
|
Identified intangible assets, net |
|
3,775 |
|
|
|
4,087 |
|
|
|
4,423 |
|
|
|
4,843 |
|
|
|
5,264 |
|
Tangible
assets |
$ |
8,905,465 |
|
|
$ |
8,297,077 |
|
|
$ |
7,692,003 |
|
|
$ |
7,713,166 |
|
|
$ |
7,471,289 |
|
|
|
|
|
|
|
|
|
|
|
Tangible stockholders’ equity to tangible
assets |
|
8.56 |
% |
|
|
9.02 |
% |
|
|
10.15 |
% |
|
|
9.94 |
% |
|
|
10.08 |
% |
|
|
|
|
|
|
|
|
|
|
Tangible
stockholders' equity |
$ |
762,211 |
|
|
$ |
748,054 |
|
|
$ |
780,756 |
|
|
$ |
767,041 |
|
|
$ |
752,777 |
|
|
|
|
|
|
|
|
|
|
|
Number of
common shares issued |
|
85,177,172 |
|
|
|
85,177,172 |
|
|
|
85,177,172 |
|
|
|
85,177,172 |
|
|
|
85,177,172 |
|
Less: |
|
|
|
|
|
|
|
|
|
Treasury shares |
|
5,859,708 |
|
|
|
5,862,811 |
|
|
|
5,003,127 |
|
|
|
5,003,127 |
|
|
|
5,025,764 |
|
Unallocated ESOP shares |
|
65,334 |
|
|
|
72,441 |
|
|
|
79,548 |
|
|
|
92,337 |
|
|
|
98,208 |
|
Unvested restricted shares |
|
398,188 |
|
|
|
395,085 |
|
|
|
406,450 |
|
|
|
407,784 |
|
|
|
377,122 |
|
Number of
common shares outstanding |
|
78,853,942 |
|
|
|
78,846,835 |
|
|
|
79,688,047 |
|
|
|
79,673,924 |
|
|
|
79,676,078 |
|
|
|
|
|
|
|
|
|
|
|
Tangible book value per common share |
$ |
9.67 |
|
|
$ |
9.49 |
|
|
$ |
9.80 |
|
|
$ |
9.63 |
|
|
$ |
9.45 |
|
|
|
|
|
|
|
|
|
|
|
Allowance
for loan and lease losses |
$ |
119,553 |
|
|
$ |
113,181 |
|
|
$ |
61,082 |
|
|
$ |
59,135 |
|
|
$ |
58,635 |
|
|
|
|
|
|
|
|
|
|
|
Total loans
and leases |
$ |
7,407,697 |
|
|
$ |
6,822,527 |
|
|
$ |
6,737,816 |
|
|
$ |
6,646,821 |
|
|
$ |
6,505,329 |
|
Less: |
|
|
|
|
|
|
|
|
|
Total PPP loans |
|
565,768 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total loans and leases excluding PPP loans |
$ |
6,841,929 |
|
|
$ |
6,822,527 |
|
|
$ |
6,737,816 |
|
|
$ |
6,646,821 |
|
|
$ |
6,505,329 |
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan and lease losses as a percentage of
total loans and leases less PPP loans |
|
1.75 |
% |
|
|
1.66 |
% |
|
|
0.91 |
% |
|
|
0.89 |
% |
|
|
0.90 |
% |
|
|
|
|
|
|
|
|
|
|
Brookline Bancorp (NASDAQ:BRKL)
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