BROOKLINE BANCORP INC - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - April 24, 2013

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Exhibit 99.1

Brookline Bancorp Announces First Quarter Net Income of $8.8 Million, EPS of $0.13

Business Fundamentals Remain Strong

BOSTON--(BUSINESS WIRE)--April 24, 2013--Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced net income of $8.8 million, or $0.13 per basic and diluted share, for the first quarter of 2013, compared to $6.3 million, or $0.09 per basic and diluted share, for the first quarter of 2012, and $11.9 million, or $0.17 per basic and diluted share, for the fourth quarter of 2012. Net earnings from operations were also $8.8 million, or $0.13 per basic and diluted share, for the quarter ended March 31, 2013, compared to $10.3 million, or $0.15 per basic and diluted share, for the quarter ended March 31, 2012, after adjustments for merger-related expenses of $4.0 million (after-tax) associated with the January 1, 2012 acquisition of Bancorp Rhode Island, Inc.

Paul Perrault, President and Chief Executive Officer of Brookline Bancorp, Inc., stated: “We are pleased with the continued growth in our commercial loan portfolios, despite the challenges of operating in a low interest-rate environment and a highly competitive marketplace. We remain focused on maintaining our traditionally strong asset quality.”

BALANCE SHEET

Total assets remained flat at $5.1 billion at March 31, 2013 compared to December 31, 2012, and increased $0.2 billion from $4.9 billion at March 31, 2012. Average total assets also stayed flat at $5.1 billion for the quarter ended March 31, 2013 compared to the quarter ended December 31, 2012, and increased $0.2 billion from $4.9 billion for the quarter ended March 31, 2012.

The loan and lease portfolio totaled $4.2 billion, essentially unchanged as compared to December 31, 2012. Average total loans and leases at March 31, 2013 were $4.2 billion, compared to $4.1 billion at December 31, 2012, and $3.9 billion at March 31, 2012. The portfolio has increased $0.2 billion, or 6.1 percent, as compared to March 31, 2012. Strong loan growth continued in our commercial loan portfolios, which increased 5.5 percent on an annualized basis during the first quarter of 2013. At March 31, 2013, the commercial loan and lease and commercial real estate portfolios totaled $2.9 billion, or 69.3 percent of total loans and leases. The indirect automobile portfolio decreased $31.4 million from December 31, 2012 to March 31, 2013, due to fewer loan originations in the auto lending market.

Deposits of $3.6 billion at March 31, 2013 were up slightly from December 31, 2012, and increased 4.8 percent as compared to March 31, 2012. Core deposits increased at a 3.9 percent annualized rate in the first quarter of 2013, raising the core deposit ratio from 72.0 percent as of December 31, 2012 to 72.6 percent at March 31, 2013. Total borrowings deceased $33.6 million from $854.0 million at December 31, 2012 to $820.4 million at March 31, 2013.

Cash and cash equivalents were $92.1 million as of March 31, 2013 as compared to $117.1 million as of December 31, 2012. The decrease during the first quarter of 2013 reflects the redeployment of cash to support adjustments to the Company’s securities portfolio in order to reinvest idle cash. Accordingly, investment securities available-for-sale of $486.6 million increased 4.4 percent from December 31, 2012 to March 31, 2013 on an annualized basis, with total investment securities at 10.8 percent of total assets.

The ratio of stockholders’ equity to total assets was 12.02 percent at March 31, 2013. The ratio of tangible stockholders’ equity to tangible assets was 9.20 percent at March 31, 2013.

NET INTEREST INCOME

Net interest income for the first quarter of 2013 decreased $0.9 million to $43.7 million from $44.6 million in the fourth quarter of 2012.

The decrease was primarily caused by a $1.2 million decrease in interest income on loans and leases, offset by a decrease of $0.5 million in interest expense. The decrease in interest income on loans and leases was driven by continued interest-rate pressure in the marketplace as well as a decrease of $0.3 million in purchase accounting accretion. Yield adjustments related to purchase accounting on acquired loans totaled $1.1 million, or 10 basis points, in the first quarter of 2013, as compared to $1.4 million, or 13 basis points, in the fourth quarter of 2012. The decrease in yield adjustments is due to the Company’s most recent reforecasting of expected cash flows. The decrease in interest expense was a result of a decrease in FHLBB advances and associated borrowing costs, as well as decrease in the interest rates associated with deposits.

Net interest income for the first quarter of 2013 remained relatively stable as compared to the first quarter of 2012. The net interest margin for the first quarter of 2013 was 3.70 percent, as compared to 3.79 percent for the fourth quarter of 2012 and 3.87 percent for the first quarter of 2012. The decrease was a result of continued rate pressure in the lending market.

NON-INTEREST INCOME

Non-interest income for the first quarter of 2013 decreased $3.2 million to $3.3 million from $6.5 million in the fourth quarter of 2012. The decrease was largely a result of a $1.9 million gain on a sale of equipment leases that was undertaken to manage concentration risk in the equipment financing portfolio during the fourth quarter of 2012. In addition, there was a $0.2 million gain on an investment in an affordable housing project in the fourth quarter of 2012.

Non-interest income for the first quarter of 2013 decreased to $3.3 million from $3.6 million in the first quarter of 2012. The change was a combined result of decreased fees, charges, and other income, as well as a larger loss from investments in affordable housing projects in the first quarter of 2013.

NON-INTEREST EXPENSE AND TAX PROVISION

Non-interest expense for the first quarter of 2013 increased $1.9 million as compared to the fourth quarter of 2012 and decreased $1.7 million as compared to first quarter of 2012. Significant changes in non-interest expense included the following:

  • Compensation and employee benefit expense increased $0.6 million, or 3.8 percent as compared to the fourth quarter of 2012, and $1.6 million, or 11.0 percent as compared to the first quarter of 2012. This increase is a result of the addition of loan officers and other individuals in key support areas of the Company.
  • The increase in compensation and benefit expenses was offset by a substantial decrease in professional service expenses. While professional service expenses stayed flat in the first quarter of 2013 as compared to the fourth quarter of 2012, it decreased $5.0 million, or 76.7 percent, from the first quarter of 2012 to the first quarter of 2013. The higher expense in the first quarter of 2012 was a result of the acquisition of Bancorp Rhode Island, Inc.
  • Equipment and data processing expense increased $0.7 million, or 21.0 percent, during the first quarter of 2013. This is a result of additional expenses in conjunction with Bank Rhode Island’s core system conversion, which will continue through the end of the second quarter of 2013, as well as additional IT consulting fees. Equipment and data processing expense in the first quarter of 2013 increased minimally as compared to the first quarter of 2012, mainly due to First Ipswich’s system conversion.

The effective tax rate decreased slightly from 36.0 percent at December 31, 2012 to 35.7 percent of income before taxes at March 31, 2013.

ASSET QUALITY

Asset quality remains stable and strong. Nonperforming loans and leases decreased slightly from $22.2 million at December 31, 2012 to $21.7 million at March 31, 2013. The ratio of nonperforming loans to total loans and leases decreased from 0.53 percent at December 31, 2012 to 0.52 percent at March 31, 2013. Nonperforming assets decreased slightly from $23.7 million at December 31, 2012 or 0.46 percent of total assets to $22.9 million or 0.45 percent of total assets at March 31, 2013.

The provision for loan and lease losses decreased from $3.1 million for the fourth quarter of 2012 to $1.8 million for the first quarter of 2013. The decrease in provision was due to a lower rate of charge-offs and a lower rate of loan growth in the first quarter of 2013 as compared to the fourth quarter of 2012. Net charge-offs decreased from $0.8 million, or 0.08 percent of average loans and leases on an annualized basis for the fourth quarter of 2012 to $0.4 million or 0.04 percent of average loans and leases on an annualized basis for the first quarter of 2013.

The allowance for loan and lease losses was $42.5 million at March 31, 2013, compared to $41.2 million at December 31, 2012, and $34.4 million at March 31, 2012, an increase that reflects the loan growth experienced across the Company. The allowance for loan and lease losses as a percent of total loans and leases was 1.02 percent at March 31, 2013, compared to 0.98 percent at December 31, 2012, and 0.87 percent at March 31, 2012. The allowance for loan and lease losses as a percent of originated loans and leases increased slightly from 1.33 percent at December 31, 2012 to 1.34 percent at March 31, 2013.

DIVIDEND DECLARED

The Company’s Board of Directors approved, for the 44th consecutive quarter, a dividend of $0.085 per share. The dividend will be paid on May 24, 2013, to shareholders of record on May 10, 2013.

CONFERENCE CALL

The Company will conduct a conference call/webcast at 1:30 PM eastern time on Thursday, April 25, 2013 to discuss the results for the quarter, business highlights and outlook. The call can be accessed by dialing 888-317-6016 (United States) or 412-317-6016 (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 10027149. The call will be available live or 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 approximately $5.1 billion in assets and 46 branches throughout 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 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.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. 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 FASB 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 net earnings from operations, the allowance for loan and lease losses as a percentage of originated loans and leases, 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 services 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)
         

As of and for the
Three Months Ended March 31,

2013 2012
(In Thousands Except
Per Share Data)
Earnings Data:
Net interest income $ 43,669 $ 43,634
Provision for credit losses 1,855 3,247
Non-interest income 3,327 3,595
Non-interest expense 30,772 32,449
Income before income taxes 14,369 11,533
Net income attributable to Brookline Bancorp, Inc. 8,813 6,349
 
Performance Ratios:
Net interest margin (1) 3.70 % 3.87 %
Interest rate spread (1) 3.55 % 3.68 %
Return on average assets 0.70 % 0.52 %
Return on average stockholders' equity 5.72 % 4.25 %
 
Per Common Share Data:
Net income — Basic $ 0.13 $ 0.09
Net income — Diluted 0.13 0.09
Cash dividends declared

0.085

0.085

Book value per share (end of period) 8.77 8.58
Tangible book value per share (end of period) (non-GAAP) 6.51 6.21
Stock price (end of period) 9.14 9.37
 
(1) Calculated on a fully tax-equivalent basis.
 
 
At or for the Three Months Ended
Mar 31, 2013 Dec 31, 2012 Sep 30, 2012 Jun 30, 2012 Mar 31, 2012
(Dollars in Thousands)
Balance Sheet:
Total assets $ 5,110,378 $ 5,147,534 $ 5,061,444 $ 4,972,381 $ 4,877,124
Total loans and leases 4,173,985 4,175,712 4,144,012 4,012,544 3,933,296
Total deposits 3,626,033 3,616,259 3,568,016 3,521,206 3,459,333
Brookline Bancorp, Inc. stockholders’ equity 614,039 612,097 605,962 598,865 597,531
 
Asset Quality:
Nonperforming assets $ 22,941 $ 23,737 $ 23,675 $ 23,831 $ 14,648
Nonperforming assets as a percentage of total assets 0.45 % 0.46 % 0.47 % 0.48 % 0.30 %
Allowance for loan and lease losses $ 42,532 $ 41,152 $ 38,913 $ 37,431 $ 34,428
Allowance for loan and lease losses as a percentage
of total loans and leases 1.02 % 0.98 % 0.94 % 0.93 % 0.87 %
Net loan and lease charge-offs $ 419 $ 826 $ 1,539 $ 3,675 $ 522
Net loan and lease charge-offs as a percentage
of average loans and leases (annualized) 0.04 % 0.08 % 0.15 % 0.37 % 0.05 %
 
Capital Ratios:
Stockholders’ equity to total assets 12.02 % 11.89 % 11.97 % 12.04 % 12.25 %
Tangible stockholders’ equity to
tangible assets (non-GAAP) 9.20 % 9.08 % 9.08 % 9.07 % 9.18 %
 
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets (Unaudited)
         
March 31, December 31, September 30, June 30, March 31,
2013 2012 2012 2012 2012
(In Thousands Except Share Data)
ASSETS
Cash and due from banks $ 39,330 $ 78,441 $ 41,617 $ 118,411 $ 88,884
Short-term investments   52,766     38,656     34,655     98,677     44,382  
Total cash and cash equivalents   92,096     117,097     76,272     217,088     133,266  
Investment securities available-for-sale 486,625 481,323 466,822 384,533 461,498
Investment securities held-to-maturity   500     500     500     500     500  
Total investment securities   487,125     481,823     467,322     385,033     461,998  
Loans held-for-sale 839 3,233 2,303 585 2,222
Loans and leases:
Commercial real estate loans:
Commercial real estate mortgage 1,299,496 1,301,233 1,262,411 1,221,202 1,200,412
Multi-family mortgage 585,669 606,533 628,162 612,213 596,285
Construction   115,896     98,197     86,345     88,759     77,487  
Total commercial real estate loans   2,001,061     2,005,963     1,976,918     1,922,174     1,874,184  
Commercial loans and leases:
Commercial 399,781 382,277 346,744 319,867 309,338
Equipment financing 448,701 420,991 426,597 387,093 367,206
Condominium association   43,043     44,187     43,732     43,596     45,872  
Total commercial loans and leases   891,525     847,455     817,073     750,556     722,416  
Indirect automobile loans   510,954     542,344     574,279     581,063     578,622  
Consumer loans:
Residential mortgage 509,155 511,109 505,553 492,489 488,590
Home equity 254,048 261,562 263,194 260,623 262,591
Other consumer   7,242     7,279     6,995     5,639     6,893  
Total consumer loans   770,445     779,950     775,742     758,751     758,074  
Total loans and leases 4,173,985 4,175,712 4,144,012 4,012,544 3,933,296
Allowance for loan and lease losses   (42,532 )   (41,152 )   (38,913 )   (37,431 )   (34,428 )
Net loans and leases   4,131,453     4,134,560     4,105,099     3,975,113     3,898,868  
Restricted equity investments 66,553 68,661 68,661 61,291 53,554
Premises and equipment, net 74,223

 

70,791

 

66,814 56,248 48,908
Building held-for-sale - - 6,046 6,046 6,046
Deferred tax asset 29,123 27,197 27,354 25,656 24,647
Goodwill, net 137,890

 

137,890

 

137,890 137,890 138,914
Identified intangible assets, net of accumulated amortization 20,345 21,510 23,307 24,578 25,849
Other real estate owned and repossessed assets, net 1,248 1,491 2,386 2,765 2,647
Other assets   69,483     83,281     77,990     80,088     80,205  
Total assets $ 5,110,378   $ 5,147,534   $ 5,061,444   $ 4,972,381   $ 4,877,124  
 
LIABILITIES AND EQUITY
Deposits:
Demand checking accounts $ 623,315 $ 623,274 $ 590,189 $ 546,036 $ 529,945
NOW accounts 194,313 212,858 183,478 185,234 181,299
Savings accounts 509,967 515,367 520,614 503,507 511,736
Money market accounts 1,303,231 1,253,819 1,231,206 1,236,967 1,174,805
Certificate of deposit accounts   995,207     1,010,941     1,042,529     1,049,462     1,061,548  
Total deposits   3,626,033     3,616,259     3,568,016     3,521,206     3,459,333  
Borrowed funds:
Advances from the FHLBB 759,675 790,865 771,110 733,394 698,671
Other borrowed funds   60,772     63,104     57,146     60,707     59,865  
Total borrowed funds   820,447     853,969     828,256     794,101     758,536  
Mortgagors’ escrow accounts 7,823 6,946 7,066 6,942 7,156
Accrued expenses and other liabilities   38,825     54,551     47,889     47,328     50,883  
Total liabilities   4,493,128     4,531,725     4,451,227     4,369,577     4,275,908  
 
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;

75,744,445 shares, 75,749,825 shares, 75,749,819 shares,

75,414,713 shares and 75,414,713 shares issued, respectively 754 754 754 754 754
Additional paid-in capital 618,711 618,429 618,176 618,184 618,031
Retained earnings, partially restricted 56,211 53,358 47,451 42,006 40,398
Accumulated other comprehensive income 2,233 3,483 3,569 1,969 2,457
Treasury stock, at cost; 5,373,733 shares (62,107 ) (62,107 ) (62,107 ) (62,107 ) (62,107 )
Unallocated common stock held by ESOP; 323,355 shares,
333,918 shares, 344,991 shares, 356,064 shares,
and 367,137 shares, respectively   (1,763 )   (1,820 )   (1,881 )   (1,941 )   (2,002 )
Total Brookline Bancorp, Inc. stockholders’ equity   614,039     612,097     605,962     598,865     597,531  
Noncontrolling interest in subsidiary   3,211     3,712     4,255     3,939     3,685  
Total equity   617,250     615,809     610,217     602,804     601,216  
Total liabilities and equity $ 5,110,378   $ 5,147,534   $ 5,061,444   $ 4,972,381   $ 4,877,124  
 
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
     
Three Months Ended March 31,
2013 2012
(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases $ 49,419 $ 49,643
Debt securities 1,852 3,229
Short-term investments 31 27
Marketable and restricted equity securities   310     92  
Total interest and dividend income   51,612     52,991  
 
Interest expense:
Deposits 4,834 5,517
Borrowed funds and subordinated debt   3,109     3,840  
Total interest expense   7,943     9,357  
 
Net interest income 43,669 43,634
Provision for credit losses   1,855     3,247  
Net interest income after provision for credit losses   41,814     40,387  
 
Non-interest income:
Fees, charges and other income 3,639 3,733
Loss from investments in affordable housing projects (312 ) (138 )
Gain on sales of securities, net - -
Gain on sales of loans and leases   -     -  
Total non-interest income   3,327     3,595  
 
Non-interest expense:
Compensation and employee benefits 16,298 14,688
Occupancy 3,083 2,676
Equipment and data processing 3,861 3,645
Professional services 1,501 6,453
FDIC insurance 934 920
Advertising and marketing 670 703
Amortization of identified intangible assets 1,165 1,283
Other   3,260     2,081  
Total non-interest expense   30,772     32,449  
 
Income before income taxes 14,369 11,533
Provision for income taxes   5,129     4,899  
Net income 9,240 6,634
Less net income attributable to noncontrolling
interest in subsidiary   427     285  
Net income attributable to Brookline Bancorp, Inc. $ 8,813   $ 6,349  
 
Earnings per common share:
Basic $ 0.13 $ 0.09
Diluted 0.13 0.09
 
Weighted average common shares outstanding during the period:
Basic 69,762,784 69,664,619
Diluted 69,830,630 69,665,873
 
Dividends declared per common share $ 0.085 $ 0.085
 
 
* Certain amounts previously reported have been reclassified to conform to the current period's presentation.
 
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Asset Quality Analysis (Unaudited)
         
At or for the Three Months Ended
Mar 31, 2013 Dec 31, 2012 Sep 30, 2012 Jun 30, 2012 Mar 31, 2012
(Dollars in Thousands)
NONPERFORMING ASSETS:
 
Loans and leases accounted for on a nonaccrual basis:
Commercial real estate mortgage $ 3,970 $ 4,014 $ 3,610 $ 3,674 $ 1,593
Multi-family mortgage 4,132 4,233 5,157 3,129 2,634
Construction   -     -     -     344     352  
Total commercial real estate loans 8,102 8,247 8,767 7,147 4,579
 
Commercial 5,035 5,454 5,432 6,896 2,146
Equipment financing 3,595 3,873 3,040 2,375 1,226
Condominium association   6     8     9     11     13  
Total commercial loans and leases 8,636 9,335 8,481 9,282 3,385
 
Indirect automobile loans 62 99 80 91 27
 
Residential mortgage 3,724 3,804 2,924 3,710 3,651
Home equity 1,150 716 988 831 346
Other consumer   19     45     49     5     13  
Total consumer loans 4,893 4,565 3,961 4,546 4,010
 
Total nonaccrual loans and leases 21,693 22,246 21,289 21,066 12,001
 
Other real estate owned 943 903 1,690 2,082 2,207
Other repossessed assets   305     588     696     683     440  
 
Total nonperforming assets $ 22,941   $ 23,737   $ 23,675   $ 23,831   $ 14,648  
 
Troubled debt restructurings on accrual $ 5,126   $ 7,191   $ 6,588   $ 6,443   $ 6,692  
 
Nonperforming loans and leases as a percentage of total loans and leases 0.52 % 0.53 % 0.51 % 0.52 % 0.30 %
Nonperforming assets as a percentage of total assets 0.45 % 0.46 % 0.47 % 0.48 % 0.30 %
 
 
PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:
 
Allowance for loan and lease losses at beginning of period $ 41,152 $ 38,913 $ 37,431 $ 34,428 $ 31,703
Charge-offs (661 ) (1,527 ) (1,807 ) (3,970 ) (788 )
Recoveries   242     701     268     295     266  
Net charge-offs (419 ) (826 ) (1,539 ) (3,675 ) (522 )
Provision for loan and lease losses   1,799     3,065     3,021     6,678     3,247  
Allowance for loan and lease losses at end of period $ 42,532   $ 41,152   $ 38,913   $ 37,431   $ 34,428  
 
Allowance for loan and lease losses as a percentage of
total loans and leases 1.02 % 0.98 % 0.94 % 0.93 % 0.87 %
Allowance for loan and lease losses as a percentage of
originated loans and leases 1.34 % 1.33 % 1.31 % 1.33 % 1.29 %
 
NET CHARGE-OFFS:
 
Commercial real estate loans $ (4 ) $ - $ (38 ) $ (40 ) $ (40 )
Commercial loans and leases 166 196 1,179 3,292 263
Indirect automobile loans 231 366 301 225 292
Consumer loans   26     264     97     198     7  
Total net charge-offs $ 419   $ 826   $ 1,539   $ 3,675   $ 522  
 
Net loan and lease charge-offs as a percentage of
average loans and leases (annualized) 0.04 % 0.08 % 0.15 % 0.37 % 0.05 %
 
** Historic data to be re-allocated to respective loan portfolios in the final press release
 
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Average Yields / Costs (Unaudited)
                 
Three Months Ended
March 31, 2013 December 31, 2012 March 31, 2012
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:
Short-term investments $ 57,695 $ 29 0.20 % $ 70,040 $ 42 0.24 % $ 50,810 $ 27 0.21 %
Investment securities available-for-sale (2) 471,509 1,862 1.58 % 456,690 1,854 1.62 % 517,843 3,237 2.50 %
Restricted equity securities (2) 68,550 355 2.08 % 68,660 508 2.95 % 55,943 108 0.78 %
Commercial real estate loans (3) 1,988,501 24,315 4.89 % 1,967,921 23,798 4.86 % 1,829,833 23,468 5.17 %
Commercial loans (3) 426,573 4,569 4.28 % 395,991 5,042 5.08 % 393,861 4,588 4.67 %
Equipment financing (3) 436,983 8,001 7.38 % 428,867 8,285 7.73 % 341,736 6,756 7.91 %
Indirect automobile loans (3) 526,923 4,916 3.78 % 560,118 5,510 3.91 % 574,926 6,247 4.37 %
Residential mortgage loans (3) 508,303 5,165 4.10 % 507,955 5,323 4.19 % 491,012 5,544 4.52 %
Other consumer loans (3)   265,047     2,616 4.00 %   269,019     2,713 4.01 %   273,561     3,040 4.47 %
Total interest-earning assets 4,750,084   51,828 4.38 % 4,725,261   53,075 4.50 % 4,529,525   53,015 4.70 %
Allowance for loan and lease losses (41,487 ) (39,435 ) (32,999 )
Non-interest-earning assets   362,566     398,980     364,369  
Total assets $ 5,071,163   $ 5,084,806   $ 4,860,895  
 
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest-bearing deposits:
NOW accounts $ 190,320 $ 51 0.11 % $ 184,849 $ 48 0.10 % $ 179,086 $ 53 0.12 %
Savings accounts 514,383 337 0.27 % 518,452 374 0.29 % 511,147 498 0.39 %
Money market accounts 1,294,593 2,061 0.65 % 1,246,514 2,115 0.68 % 1,143,545 2,152 0.76 %
Certificates of deposit   1,002,602     2,385 0.96 %   1,028,884     2,540 0.98 %   1,078,276     2,813 1.05 %
Total interest-bearing deposits (4) 3,001,898 4,834 0.65 % 2,978,699 5,077 0.68 % 2,912,054 5,516 0.76 %
Advances from the FHLBB 753,270 2,955 1.59 % 757,842 3,207 1.68 % 723,831 3,671 2.04 %
Other borrowed funds   63,065     154 0.99 %   62,299     128 0.82 %   58,766     170 1.16 %
Total interest-bearing liabilities 3,818,233   7,943 0.84 % 3,798,840   8,412 0.88 % 3,694,651   9,357 1.02 %
Non-interest-bearing liabilities:
Demand checking accounts (4) 607,878 612,267 509,522
Other non-interest-bearing liabilities   24,575     58,496     55,182  
Total liabilities 4,450,686 4,469,603 4,259,355
Brookline Bancorp, Inc. stockholders’ equity 616,627 611,181 597,978
Noncontrolling interest in subsidiary   3,850     4,022     3,562  
Total liabilities and equity $ 5,071,163   $ 5,084,806   $ 4,860,895  
Net interest income (tax-equivalent basis) /
Interest rate spread (5) 43,885 3.55 % 44,663 3.62 % 43,658 3.68 %
Less adjustment of tax-exempt income   216   99   24
Net interest income $ 43,669 $ 44,564 $ 43,634
Net interest margin (6) 3.70 % 3.79 % 3.87 %
 
(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 nonaccrual status are included in the average balances.
 

(4) Including non-interest-bearing checking accounts, the average interest rate on total deposits was 0.54%, 0.56% and 0.65% in the three months ended March 31, 2013, December 31, 2012, and March 31, 2012, 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 (Unaudited)
         
Three Months Ended March 31,
2013 2012
Reconciliation Table - Non-GAAP Financial Information (Dollars in Thousands
Except Share Data)
 
Net income attributable to Brookline Bancorp, Inc. $ 8,813 $ 6,349
Add:
Acquisition-related expenses (after-tax)   -     3,972  
Net earnings from operations $ 8,813   $ 10,321  
 
Operating earnings per common share:
Basic $ 0.13 $ 0.15
Diluted 0.13 0.15
 
Weighted average common shares outstanding during the period:
Basic 69,762,784 69,664,619
Diluted 69,830,630 69,665,873
 
 
 
 
Mar 31, 2013 Dec 31, 2012 Sep 30, 2012 Jun 30, 2012 Mar 31, 2012
(Dollars in Thousands)
 
Brookline Bancorp, Inc. stockholders’ equity $ 614,039 $ 612,097 $ 605,962 598,865 $ 597,531
Less:
Goodwill 137,890 137,890 137,890 137,890 138,914
Identified intangible assets   20,345     21,510     23,307     24,578     25,849  
Tangible stockholders' equity $ 455,804   $ 452,697   $ 444,765   $ 436,397   $ 432,768  
 
Total assets 5,110,378 5,147,534 5,061,444 4,972,381 4,877,124
Less:
Goodwill 137,890 137,890 137,890 137,890 138,914
Identified intangible assets   20,345     21,510     23,307     24,578     25,849  
Tangible assets $ 4,952,143   $ 4,988,134   $ 4,900,247   $ 4,809,913   $ 4,712,361  

 

 

Tangible stockholders’ equity to tangible assets 9.20 % 9.08 % 9.08 % 9.07 % 9.18 %
 
 
 
Mar 31, 2013 Dec 31, 2012 Sep 30, 2012 Jun 30, 2012 Mar 31, 2012
(Dollars in Thousands Except Per Share Data)
 
Tangible stockholders' equity $ 455,804   $ 452,697   $ 444,765   $ 436,397   $ 432,768  
 
Number of common shares issued

75,744,445

75,749,825 75,749,819 75,414,713 75,414,713
Less:
Treasury shares 5,373,733 5,373,733 5,373,733 5,373,733 5,373,733
Unallocated ESOP shares   323,355     333,918     344,991     356,064     367,137  
Number of common shares outstanding  

70,047,357

    70,042,174     70,031,095     69,684,916     69,673,843  
 
Tangible book value per common share $ 6.51 $ 6.46 $ 6.35 $ 6.26 $ 6.21

CONTACT:
Brookline Bancorp, Inc.
Julie A. Gerschick, 617-425-5331
Chief Financial Officer and Treasurer
jgerschick@brkl.com

BROOKLINE BANCORP INC Reports