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| 8-K - 8-K EARNINGS RELEASE Q2 - Blue Hills Bancorp, Inc. | a2015q28-k.htm |
EXHIBIT 99.1
Blue Hills Bancorp, Inc. Reports Second Quarter 2015 Earnings
Share Repurchase Program Announced and Cash Dividend Declared
NORWOOD, Mass.--(BUSINESS WIRE)-Blue Hills Bancorp, Inc. (the “Company” or "Blue Hills Bancorp") (NASDAQ: BHBK), the parent of Blue Hills Bank (the "Bank"), today announced the initiation of a 5% share repurchase program, a $0.02 quarterly cash dividend, and net income of $1,699,000, or $.06 per diluted share, for the second quarter of 2015 compared to net income of $1,306,000, or $.05 per diluted share, for the first quarter of 2015. Net income for the second quarter of 2014 was $761,000, excluding nonrecurring expenses related to the Company's mutual-to-stock conversion and the January 2014 Nantucket Bank acquisition. Net income for the second quarter of 2014 on a GAAP basis was $429,000 (see page 14 for a reconciliation of GAAP to non-GAAP measures). Blue Hills Bancorp was not a publicly traded company in the second quarter of 2014 and earnings per share is not applicable for that period or for the first six months of 2014.
For the six months ended June 30, 2015, net income was $3,005,000, or $.11 per diluted share, versus net income of $1,197,000 for the six months ended June 30, 2014, excluding nonrecurring expenses related to the Company's mutual-to-stock conversion and the January 2014 Nantucket Bank acquisition. Net income for the six months ended June 30, 2014 on a GAAP basis was $31,000.
Commenting on the second quarter results and capital actions, William Parent, President and Chief Executive Officer of Blue Hills Bancorp, said "With loan and customer deposit growth of 27% and 9%, respectively, combined with solid asset quality and cost control, we are quite happy with the progress made during our first year as a public company. Our core net interest margin has grown from a year ago, while our balance sheet has been properly positioned for the coming rising rate environment. We also continue to be highly focused on the issue of effective capital deployment and are pleased to announce today our first share repurchase program and quarterly cash dividend."
BALANCE SHEET
Compared to March 31, 2015, total assets grew $87 million, or 5%, to $1.8 billion at June 30, 2015. Total loans were up $91 million, or 8%, driven primarily by growth in the residential mortgage portfolio, which was up $47 million, or 10%, and in the commercial real estate portfolio, which was up $42 million, or 11%. Other loan categories had only minor changes.
Compared to June 30, 2014, total assets increased $21 million, or 1%. The June 30, 2014 balance sheet was impacted by the closing of the subscription offering related to the Company’s mutual-to-stock conversion. The offering was oversubscribed with the Bank receiving orders in excess of the adjusted maximum of the offering range ($278 million) and this money was held in escrow as of June 30, 2014. Excluding the impact of the funds held in escrow for the stock offering at June 30, 2014, total assets were up approximately $300 million compared to June 30, 2014. Loans accounted for the vast majority of the growth in total assets reflecting a combination of originations and participations. By category, commercial real estate loans were up $113 million, or 34%; residential mortgages were up $102 million, or 25%; commercial business loans were up $31 million, or 26%; and construction loans were up $15 million, or 34%.
Compared to March 31, 2015, deposits grew $53 million, or 4%, to $1.3 billion at June 30, 2015. The increase from the first quarter was mainly driven by increases in money market deposits of $27 million and brokered deposits of $25 million. The growth in money market deposits was due, in part, to promotional rate programs; however, the yield on money market deposits still declined 6 basis points from the first quarter.
Compared to June 30, 2014, deposits grew $123 million, or 11%. By category, there were increases of $101 million in money market deposits, $31 million in NOW & demand, $26 million in brokered deposits, and $17 million in certificates of deposit. These increases were partially offset by a $52 million decline in regular savings. The Milton branch, which was opened in October 2014, contributed $35 million to the growth in total deposits.
Stockholders’ equity was $414 million at June 30, 2015 compared to $415 million at March 31, 2015 and $176 million at June 30, 2014. The slight decline from March 31 is due to a lower level of other comprehensive income, partially offset by an
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increase in retained earnings reflecting net income in the second quarter. The balance in other comprehensive income declined from March 31 due to a drop in the value of debt securities in the available for sale portfolio caused by the rise in interest rates. The increase in stockholders' equity from a year ago reflects the Company's mutual-to-stock conversion that was completed in July 2014. Proceeds from the stock offering were used to fund asset growth and to pay down debt and, as a result, borrowings declined to $130 million at June 30, 2015 from $195 million at June 30, 2014. As part of the conversion, the Company also (1) redeemed $18.7 million of preferred stock that had been issued to the U.S. Treasury as part of the Small Business Lending Fund Program and (2) established an employee stock ownership plan ("ESOP") which acquired 8% of the shares issued in the conversion. The $21.6 million related to the ESOP is shown as a reduction to stockholders' equity on the balance sheet at June 30, 2015. The tangible common equity to tangible assets ratio increased to 21.90% at June 30, 2015 from 7.91% at June 30, 2014 as a result of the additional capital received from the mutual-to-stock conversion. The ratio was 23.04% at March 31, 2015.
NET INTEREST AND DIVIDEND INCOME
Net interest and dividend income on a fully taxable equivalent basis was $11.2 million in the second quarter of 2015, up $459,000, or 4%, from $10.7 million in the first quarter of 2015. Net interest margin on a fully taxable equivalent basis improved to 2.65% in the second quarter from 2.64% in the first quarter. The improvement in net interest income reflects an increase in average loans of $45 million, or 4%, primarily due to a higher level of commercial real estate loans. The growth in net interest income and net interest margin was also helped by a further 5 basis point improvement in the yield on securities reflecting the repositioning of the debt securities portfolio as the Company shifted away from US Treasury bonds and added mortgage backed securities and corporate bonds. Overall duration of the debt securities portfolio remained unchanged at approximately four years. Net interest income and margin in both quarters were impacted by a 3 basis point decline in the cost of interest bearing liabilities and purchase accounting accretion related to the January 2014 Nantucket Bank acquisition. Accretion in the second quarter of 2015 contributed $268,000 to net interest income compared to $220,000 in the first quarter of 2015, and approximately 6 basis points to net interest margin in each quarter. The $3.1 million remaining balance of accretable yield at June 30, 2015 is expected to be recorded to net interest income in future quarters.
Compared to the second quarter of 2014, net interest and dividend income on a tax equivalent basis increased $1.2 million, or 12%, while net interest margin declined 4 basis points. Purchase accounting accretion related to the January 2014 Nantucket Bank acquisition was $779,000 in the second quarter of last year compared to $268,000 in the second quarter of 2015. Excluding Nantucket accretion, net interest income increased $1.7 million, or 19%, while net interest margin improved 11 basis points to 2.59%. The improvement in net interest income reflects a $254 million, or 26%, increase in average loans driven by higher levels of loans in all categories, with the biggest growth seen in the residential mortgage and commercial real estate portfolios. The bulk of the loan growth was funded with an increase in noninterest bearing funds, which benefited both net interest income and margin. Average equity increased $241 million due to the Company's mutual-to-stock conversion while average noninterest bearing deposits increased $17 million, or 15%, to $130 million in the second quarter of 2015. Net interest income and margin also benefited from a 16 basis point improvement in the securities yield reflecting the aforementioned repositioning of the debt securities portfolio. These benefits were partially offset by an increase in the cost of interest bearing liabilities from the second quarter of last year due, in part, to promotional rate programs. The loan yield also declined from the second quarter of last year due to the aforementioned drop in Nantucket accretion as well as competitive pricing pressures.
NONINTEREST INCOME
Noninterest income was $2.5 million in the second quarter of 2015 compared to $2.2 million in the first quarter.
• | Loan level derivative fee income was $770,000 in the second quarter compared to just $4,000 in the first quarter. Revenue in this category can be volatile since it is a function of the amount of commercial loans that customers opt to convert from floating to fixed rate via interest rate swaps in any given quarter. |
• | Miscellaneous income improved to $393,000 in the second quarter from an expense of $151,000 in the first quarter. The biggest factor behind the change in miscellaneous income relates to the portfolio of commercial loan customer interest rate swap contracts discussed above. While fee income from these contracts is recorded to loan level derivative fee income, GAAP dictates that the Company must mark these contracts to market over the life of each swap and these valuation marks are reflected in miscellaneous income. During the first quarter, the Company recorded negative valuation marks on these contracts as interest rates declined while in the second quarter the Company recorded positive valuation marks as interest rates increased. While these interest rate marks create quarterly volatility in operating results, barring unforeseen credit related circumstances there is no net impact to earnings over the life of |
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each contract. Miscellaneous income was also impacted by a higher level of income received on CRA-qualified investments in the second quarter.
• | Also contributing to the improvement in noninterest income from the first quarter was a seasonal increase in interchange & ATM fees. |
• | Partially offsetting the improvements discussed above was a decline in securities gains which fell to $267,000 in the second quarter from $1.3 million in the first quarter. The high level of securities gains in the first quarter was due, in part, to a repositioning of the debt securities portfolio. |
Compared to the second quarter of 2014, noninterest income increased $167,000, or 7%, due mainly to a $713,000 increase in loan level derivative fee income and a $366,000 increase in miscellaneous income. The growth in miscellaneous income was mainly due to the factors discussed above related to valuation marks on customer interest rate swap contracts and a higher level of income received on CRA-qualified investments. The improvements were partially offset by a $924,000 decline in securities gains.
NONINTEREST EXPENSE
Noninterest expense was $10.7 million in the second quarter of 2015, up $34,000 from the first quarter as a $152,000 increase in salaries and benefits expense was partially offset by a net decline in other account categories. Snow removal costs declined $116,000 reflecting the abnormally high level of expense incurred in the first quarter related to the severe winter weather experienced throughout our service area.
Noninterest expense was $10.7 million in the second quarter of 2014 and included $330,000 of expenses related to the Company's mutual-to-stock conversion and $173,000 related to one-time costs associated with the January 2014 Nantucket Bank acquisition. Excluding these items, noninterest expense in the second quarter of 2015 was $501,000 higher than the second quarter of 2014. The second quarter of 2015 included $259,000 of expense related to the ESOP that was implemented in the second half of 2014 in connection with the mutual-to-stock conversion. In addition, salaries expense increased from last year reflecting merit and promotional increases, as well as expenses related to the Milton, Massachusetts branch and a loan production office in Plymouth, Massachusetts, both of which were opened subsequent to the second quarter of 2014.
ASSET QUALITY
The provision for loan losses was $544,000 in the second quarter of 2015 compared to $279,000 in the first quarter of 2015 and $959,000 in the second quarter of 2014. The provisions in all quarters reflect management’s assessment of the growth and risks inherent in the loan portfolio. Provisions in each of the three quarters were significantly higher than net chargeoffs. The Company had net loan chargeoffs of $5,000 in the second quarter of 2015, $14,000 in the first quarter of 2015 and $13,000 in the second quarter of 2014.
The allowance for loan losses as a percentage of total loans was 1.08% at June 30, 2015 compared to 1.12% at March 31, 2015 and 1.13% at June 30, 2014. The allowance for loan losses as a percentage of nonperforming loans was 279% at June 30, 2015 compared to 278% at March 31, 2015 and 251% at June 30, 2014.
Nonperforming assets were $4.9 million at June 30, 2015 compared to $4.8 million at March 31, 2015 and $4.5 million at June 30, 2014. Nonperforming assets as a percentage of total assets were 0.27% at June 30, 2015 and March 31, 2015 compared to 0.25% at June 30, 2014.
SHARE REPURCHASE PROGRAM AND DIVIDEND
The Board of Directors has authorized a stock repurchase program pursuant to which the Company intends to purchase up to 1,423,340 shares of its issued and outstanding shares of common stock, which represents approximately 5% of the Company's issued and outstanding shares. The repurchase program is expected to commence immediately. The timing of the purchases will depend on certain factors, including but not limited to, market conditions and prices, available funds and alternative uses of capital. The stock repurchase program may be carried out through open-market purchases, block trades, negotiated private transactions and pursuant to a trading plan that will be adopted in accordance with Rule 10b5-1 under the Securities Exchange Act of 1934. Any repurchased shares will be held by the Company as authorized but unissued shares. The repurchase program may be suspended, terminated or modified at any time for any reason, including market conditions, the cost of repurchasing
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shares, the availability of alternative investment opportunities, liquidity, and other factors deemed appropriate. The repurchase program does not obligate the Company to purchase any particular number of shares.
The Board of Directors has also declared a regular quarterly cash dividend of $0.02 per share. The dividend is payable on August 20 ,2015 to stockholders of record as of August 6, 2015.
ABOUT BLUE HILLS BANCORP
Blue Hills Bancorp, Inc., with corporate headquarters in Norwood MA, had assets of $1.8 billion at June 30, 2015 and operates 10 branch offices in Brookline, Dedham, Hyde Park, Milton, Nantucket, Norwood and West Roxbury, Massachusetts. Blue Hills Bank is a full service, community bank with its main office in Hyde Park, Massachusetts. The three branches in Nantucket, Massachusetts operate under the name, Nantucket Bank, a division of Blue Hills Bank. The Bank provides consumer and commercial deposit and loan products to Eastern Massachusetts through a growing branch network and eCommerce channels. The Bank offers commercial and industrial and commercial real estate loans in addition to cash management services and commercial deposit accounts. The Bank also serves consumers through a full suite of consumer banking products including checking accounts, mortgage loans, equity lines of credit and traditional savings and certificate of deposit accounts. The Bank has invested substantially in online technology including online account opening and funding, online mortgage applications, online banking, mobile banking, bill pay and mobile deposits. Blue Hills Bank has been serving area residents for over 140 years. For more information about Blue Hills Bank, visit the Blue Hills web site at www.bluehillsbank.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release, as well as other written communications made from time to time by the Company and its subsidiaries and oral communications made from time to time by authorized officers of the Company, may contain statements relating to the future results of the Company (including certain projections and business trends) that are considered "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 (the PSLRA). Such forward-looking statements may be identified by the use of such words as "believe," "expect," "anticipate," "should," "planned," "estimated," "intend" and "potential." For these statements, the Company claims the protection of the safe harbor for forward-looking statements contained in the PSLRA.
The Company cautions you that a number of important factors could cause actual results to differ materially from those currently anticipated in any forward-looking statement. Such factors include, but are not limited to: our ability to implement successfully our new business strategy, which includes significant asset and liability growth; changes that could adversely affect the business in which the Company and the Bank are engaged; prevailing economic and geopolitical conditions; changes in interest rates, loan demand, real estate values and competition; changes in accounting principles, policies, and guidelines; changes in any applicable law, rule, regulation or practice with respect to tax or legal issues; and other economic, competitive, governmental, regulatory and technological factors affecting the Company's operations, pricing, products and services. For additional information on some of the risks and important factors that could affect the Company’s future results and financial condition, see “Risk Factors” in the Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission. The forward-looking statements are made as of the date of this release, and, except as may be required by applicable law or regulation, the Company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements.
Media and Investor Contact:
William Parent, 617-360-6520
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Blue Hills Bancorp, Inc.
Consolidated Balance Sheets
(Dollars in thousands) | % Change | ||||||||||||
June 30, 2015 | March 31, 2015 | June 30, 2014 | June 30, 2015 vs. March 31, 2015 | June 30, 2015 vs. June 30, 2014 | |||||||||
Assets | |||||||||||||
Cash and due from banks | $ | 10,162 | $ | 10,045 | $ | 15,308 | 1.2 | % | (33.6 | )% | |||
Short term investments | 43,240 | 26,966 | 281,618 | 60.4 | % | (84.6 | )% | ||||||
Total cash and cash equivalents | 53,402 | 37,011 | 296,926 | 44.3 | % | (82.0 | )% | ||||||
Securities available for sale, at fair value | 431,827 | 429,551 | 417,581 | 0.5 | % | 3.4 | % | ||||||
Federal Home Loan Bank stock, at cost | 11,702 | 11,702 | 11,702 | — | % | — | % | ||||||
Loans held for sale | 1,833 | 17,681 | 22,398 | (89.6 | )% | (91.8 | )% | ||||||
Loans: | |||||||||||||
1-4 family residential | 510,406 | 463,334 | 408,528 | 10.2 | % | 24.9 | % | ||||||
Home equity | 65,735 | 63,276 | 62,508 | 3.9 | % | 5.2 | % | ||||||
Commercial real estate | 448,125 | 405,670 | 334,647 | 10.5 | % | 33.9 | % | ||||||
Construction | 60,553 | 59,513 | 45,192 | 1.7 | % | 34.0 | % | ||||||
Total real estate loans | 1,084,819 | 991,793 | 850,875 | 9.4 | % | 27.5 | % | ||||||
Commercial business | 151,012 | 154,367 | 120,313 | (2.2 | )% | 25.5 | % | ||||||
Consumer | 33,995 | 32,845 | 30,457 | 3.5 | % | 11.6 | % | ||||||
Total loans | 1,269,826 | 1,179,005 | 1,001,645 | 7.7 | % | 26.8 | % | ||||||
Allowance for loan losses | (13,777 | ) | (13,238 | ) | (11,292 | ) | 4.1 | % | 22.0 | % | |||
Loans, net | 1,256,049 | 1,165,767 | 990,353 | 7.7 | % | 26.8 | % | ||||||
Premises and equipment, net | 18,969 | 18,869 | 18,209 | 0.5 | % | 4.2 | % | ||||||
Accrued interest receivable | 4,878 | 4,793 | 4,127 | 1.8 | % | 18.2 | % | ||||||
Goodwill and core deposit intangible | 12,541 | 12,955 | 14,361 | (3.2 | )% | (12.7 | )% | ||||||
Net deferred tax asset | 7,015 | 5,172 | 1,020 | 35.6 | % | 587.7 | % | ||||||
Bank-owned life insurance | 31,100 | 30,848 | 30,326 | 0.8 | % | 2.6 | % | ||||||
Other assets | 15,251 | 23,535 | 16,102 | (35.2 | )% | (5.3 | )% | ||||||
Total assets | $ | 1,844,567 | $ | 1,757,884 | $ | 1,823,105 | 4.9 | % | 1.2 | % | |||
Liabilities and Stockholders' Equity | |||||||||||||
NOW and demand | $ | 268,126 | $ | 256,746 | $ | 237,586 | 4.4 | % | 12.9 | % | |||
Regular savings | 291,628 | 301,932 | 343,697 | (3.4 | )% | (15.1 | )% | ||||||
Money market | 296,539 | 269,164 | 195,264 | 10.2 | % | 51.9 | % | ||||||
Certificates of deposit | 310,365 | 310,672 | 293,516 | (0.1 | )% | 5.7 | % | ||||||
Brokered money market | 23,759 | 23,991 | — | (1.0 | )% | 100.0 | % | ||||||
Brokered certificates of deposit | 83,705 | 58,705 | 81,205 | 42.6 | % | 3.1 | % | ||||||
Total deposits | 1,274,122 | 1,221,210 | 1,151,268 | 4.3 | % | 10.7 | % | ||||||
Stock subscriptions | — | — | 283,958 | — | — | ||||||||
Short-term borrowings | 95,000 | 70,000 | 160,000 | 35.7 | % | (40.6 | )% | ||||||
Long-term debt | 35,000 | 35,000 | 35,000 | — | % | — | % | ||||||
Other liabilities | 26,704 | 16,730 | 16,724 | 59.6 | % | 59.7 | % | ||||||
Total liabilities | 1,430,826 | 1,342,940 | 1,646,950 | 6.5 | % | (13.1 | )% | ||||||
Preferred stock | — | — | 18,724 | — | % | (100.0 | )% | ||||||
Common stock | 285 | 285 | — | — | % | 100.0 | % | ||||||
Additional paid-in capital | 281,164 | 281,094 | — | — | % | 100.0 | % | ||||||
Unearned compensation- ESOP | (21,635 | ) | (21,825 | ) | — | 0.9 | % | (100.0 | )% | ||||
Retained earnings | 152,728 | 151,029 | 149,959 | 1.1 | % | 1.8 | % | ||||||
Accumulated other comprehensive income | 1,199 | 4,361 | 7,472 | (72.5 | )% | (84.0 | )% | ||||||
Total stockholders' equity | 413,741 | 414,944 | 176,155 | (0.3 | )% | 134.9 | % | ||||||
Total liabilities and stockholders' equity | $ | 1,844,567 | $ | 1,757,884 | $ | 1,823,105 | 4.9 | % | 1.2 | % | |||
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Blue Hills Bancorp, Inc
Consolidated Balance Sheet Trend
(Dollars in thousands) | June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | June 30, 2014 | ||||||||||
Assets | |||||||||||||||
Cash and due from banks | $ | 10,162 | $ | 10,045 | $ | 15,345 | $ | 14,632 | $ | 15,308 | |||||
Short term investments | 43,240 | 26,966 | 44,801 | 39,229 | 281,618 | ||||||||||
Total cash and cash equivalents | 53,402 | 37,011 | 60,146 | 53,861 | 296,926 | ||||||||||
Securities available for sale, at fair value | 431,827 | 429,551 | 416,447 | 417,164 | 417,581 | ||||||||||
Federal Home Loan Bank stock, at cost | 11,702 | 11,702 | 11,702 | 11,702 | 11,702 | ||||||||||
Loans held for sale | 1,833 | 17,681 | 14,591 | 2,465 | 22,398 | ||||||||||
Loans: | |||||||||||||||
1-4 family residential | 510,406 | 463,334 | 461,719 | 466,963 | 408,528 | ||||||||||
Home equity | 65,735 | 63,276 | 61,508 | 62,958 | 62,508 | ||||||||||
Commercial real estate | 448,125 | 405,670 | 385,228 | 368,069 | 334,647 | ||||||||||
Construction | 60,553 | 59,513 | 53,258 | 56,939 | 45,192 | ||||||||||
Total real estate loans | 1,084,819 | 991,793 | 961,713 | 954,929 | 850,875 | ||||||||||
Commercial business | 151,012 | 154,367 | 151,521 | 138,357 | 120,313 | ||||||||||
Consumer | 33,995 | 32,845 | 32,653 | 32,210 | 30,457 | ||||||||||
Total loans | 1,269,826 | 1,179,005 | 1,145,887 | 1,125,496 | 1,001,645 | ||||||||||
Allowance for loan losses | (13,777 | ) | (13,238 | ) | (12,973 | ) | (12,721 | ) | (11,292 | ) | |||||
Loans, net | 1,256,049 | 1,165,767 | 1,132,914 | 1,112,775 | 990,353 | ||||||||||
Premises and equipment, net | 18,969 | 18,869 | 18,788 | 18,616 | 18,209 | ||||||||||
Accrued interest receivable | 4,878 | 4,793 | 4,433 | 4,367 | 4,127 | ||||||||||
Goodwill and core deposit intangible | 12,541 | 12,955 | 13,392 | 13,854 | 14,361 | ||||||||||
Net deferred tax asset | 7,015 | 5,172 | 6,233 | 4,456 | 1,020 | ||||||||||
Bank-owned life insurance | 31,100 | 30,848 | 30,595 | 30,576 | 30,326 | ||||||||||
Other assets | 15,251 | 23,535 | 18,907 | 16,775 | 16,102 | ||||||||||
Total assets | $ | 1,844,567 | $ | 1,757,884 | $ | 1,728,148 | $ | 1,686,611 | $ | 1,823,105 | |||||
Liabilities and Stockholders' Equity | |||||||||||||||
NOW and demand | $ | 268,126 | $ | 256,746 | $ | 245,117 | $ | 252,439 | $ | 237,586 | |||||
Regular savings | 291,628 | 301,932 | 303,834 | 318,557 | 343,697 | ||||||||||
Money market | 296,539 | 269,164 | 280,139 | 233,392 | 195,264 | ||||||||||
Certificates of deposit | 310,365 | 310,672 | 301,755 | 289,384 | 293,516 | ||||||||||
Brokered money market | 23,759 | 23,991 | 23,166 | — | — | ||||||||||
Brokered certificates of deposit | 83,705 | 58,705 | 58,705 | 58,705 | 81,205 | ||||||||||
Total deposits | 1,274,122 | 1,221,210 | 1,212,716 | 1,152,477 | 1,151,268 | ||||||||||
Stock subscriptions | — | — | — | 283,958 | |||||||||||
Short-term borrowings | 95,000 | 70,000 | 40,000 | 75,000 | 160,000 | ||||||||||
Long-term debt | 35,000 | 35,000 | 35,000 | 35,000 | 35,000 | ||||||||||
Other liabilities | 26,704 | 16,730 | 28,826 | 14,068 | 16,724 | ||||||||||
Total liabilities | 1,430,826 | 1,342,940 | 1,316,542 | 1,276,545 | 1,646,950 | ||||||||||
Preferred stock | — | — | — | — | 18,724 | ||||||||||
Common stock | 285 | 285 | 285 | 285 | — | ||||||||||
Additional paid-in capital | 281,164 | 281,094 | 281,035 | 280,926 | — | ||||||||||
Unearned compensation- ESOP | (21,635 | ) | (21,825 | ) | (22,014 | ) | (22,393 | ) | — | ||||||
Retained earnings | 152,728 | 151,029 | 149,723 | 146,979 | 149,959 | ||||||||||
Accumulated other comprehensive income | 1,199 | 4,361 | 2,577 | 4,269 | 7,472 | ||||||||||
Total stockholders' equity | 413,741 | 414,944 | 411,606 | 410,066 | 176,155 | ||||||||||
Total liabilities and stockholders' equity | $ | 1,844,567 | $ | 1,757,884 | $ | 1,728,148 | $ | 1,686,611 | $ | 1,823,105 | |||||
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Blue Hills Bancorp, Inc.
Consolidated Statement of Net Income-Quarters
(Dollars in thousands, except share data) | Quarters Ended | % Change | |||||||||||
June 30, 2015 | March 31, 2015 | June 30, 2014 | June 30, 2015 vs. March 31, 2015 | June 30, 2015 vs. June 30, 2014 | |||||||||
Interest and fees on loans | $ | 10,759 | $ | 10,427 | $ | 9,399 | 3.2 | % | 14.5 | % | |||
Interest on securities | 2,237 | 2,136 | 2,003 | 4.7 | % | 11.7 | % | ||||||
Dividends | 112 | 100 | 119 | 12.0 | % | (5.9 | )% | ||||||
Other | 22 | 19 | 30 | 15.8 | % | (26.7 | )% | ||||||
Total interest and dividend income | 13,130 | 12,682 | 11,551 | 3.5 | % | 13.7 | % | ||||||
Interest on deposits | 1,745 | 1,763 | 1,348 | (1.0 | )% | 29.5 | % | ||||||
Interest on borrowings | 270 | 254 | 326 | 6.3 | % | (17.2 | )% | ||||||
Total interest expense | 2,015 | 2,017 | 1,674 | (0.1 | )% | 20.4 | % | ||||||
Net interest and dividend income | 11,115 | 10,665 | 9,877 | 4.2 | % | 12.5 | % | ||||||
Provision for loan losses | 544 | 279 | 959 | 95.0 | % | (43.3 | )% | ||||||
Net interest and dividend income, after provision for loan losses | 10,571 | 10,386 | 8,918 | 1.8 | % | 18.5 | % | ||||||
Deposit account fees | 335 | 333 | 343 | 0.6 | % | (2.3 | )% | ||||||
Interchange and ATM fees | 377 | 326 | 371 | 15.6 | % | 1.6 | % | ||||||
Mortgage banking | 83 | 101 | 75 | (17.8 | )% | 10.7 | % | ||||||
Loan level derivative fee income | 770 | 4 | 57 | 19,150.0 | % | 1,250.9 | % | ||||||
Realized securities gains and impairment losses, net | 267 | 1,318 | 1,191 | (79.7 | )% | (77.6 | )% | ||||||
Bank-owned life insurance income | 252 | 253 | 246 | (0.4 | )% | 2.4 | % | ||||||
Miscellaneous | 393 | (151 | ) | 27 | NM | 1,355.6 | % | ||||||
Total noninterest income | 2,477 | 2,184 | 2,310 | 13.4 | % | 7.2 | % | ||||||
Salaries and employee benefits | 5,641 | 5,489 | 5,212 | 2.8 | % | 8.2 | % | ||||||
Occupancy and equipment | 1,464 | 1,498 | 1,298 | (2.3 | )% | 12.8 | % | ||||||
Data processing | 843 | 819 | 701 | 2.9 | % | 20.3 | % | ||||||
Professional fees | 667 | 632 | 1,123 | 5.5 | % | (40.6 | )% | ||||||
Advertising | 562 | 500 | 658 | 12.4 | % | (14.6 | )% | ||||||
FDIC deposit insurance | 253 | 292 | 196 | (13.4 | )% | 29.1 | % | ||||||
Directors' fees | 93 | 124 | 156 | (25.0 | )% | (40.4 | )% | ||||||
Amortization of core deposit intangible | 414 | 437 | 509 | (5.3 | )% | (18.7 | )% | ||||||
Other general and administrative | 723 | 835 | 809 | (13.4 | )% | (10.6 | )% | ||||||
Total noninterest expense | 10,660 | 10,626 | 10,662 | 0.3 | % | — | % | ||||||
Income before income taxes | 2,388 | 1,944 | 566 | 22.8 | % | 321.9 | % | ||||||
Provision for income taxes | 689 | 638 | 137 | 8.0 | % | 402.9 | % | ||||||
Net income | $ | 1,699 | $ | 1,306 | $ | 429 | 30.1 | % | 296.0 | % | |||
Earnings per common share: | |||||||||||||
Basic | $ | 0.06 | $ | 0.05 | n/a | n/a | n/a | ||||||
Diluted | $ | 0.06 | $ | 0.05 | n/a | n/a | n/a | ||||||
Weighted average shares outstanding: | |||||||||||||
Basic | 26,293,560 | 26,274,738 | n/a | n/a | n/a | ||||||||
Diluted | 26,293,560 | 26,274,738 | n/a | n/a | n/a | ||||||||
7
Blue Hills Bancorp, Inc.
Consolidated Statements of Net Income-Year to Date
(Dollars in thousands, except share data) | Year to Date | |||||||
June 30, 2015 | June 30, 2014 | % Change | ||||||
Interest and fees on loans | $ | 21,186 | $ | 17,450 | 21.4 | % | ||
Interest on securities | 4,373 | 3,940 | 11.0 | % | ||||
Dividends | 212 | 284 | (25.4 | )% | ||||
Other | 41 | 46 | (10.9 | )% | ||||
Total interest and dividend income | 25,812 | 21,720 | 18.8 | % | ||||
Interest on deposits | 3,508 | 2,699 | 30.0 | % | ||||
Interest on borrowings | 524 | 630 | (16.8 | )% | ||||
Total interest expense | 4,032 | 3,329 | 21.1 | % | ||||
Net interest and dividend income | 21,780 | 18,391 | 18.4 | % | ||||
Provision for loan losses | 823 | 1,673 | (50.8 | )% | ||||
Net interest and dividend income, after provision for loan losses | 20,957 | 16,718 | 25.4 | % | ||||
Deposit account fees | 668 | 633 | 5.5 | % | ||||
Interchange and ATM fees | 703 | 657 | 7.0 | % | ||||
Mortgage banking | 184 | 143 | 28.7 | % | ||||
Loan level derivative fee income | 774 | 207 | 273.9 | % | ||||
Realized securities gains and impairment losses, net | 1,585 | 1,732 | (8.5 | )% | ||||
Gains on trading assets, net | — | 25 | (100.0 | )% | ||||
Bank-owned life insurance income | 505 | 495 | 2.0 | % | ||||
Miscellaneous | 242 | 47 | 414.9 | % | ||||
Total noninterest income | 4,661 | 3,939 | 18.3 | % | ||||
Salaries and employee benefits | 11,130 | 10,341 | 7.6 | % | ||||
Occupancy and equipment | 2,962 | 2,899 | 2.2 | % | ||||
Data processing | 1,662 | 1,306 | 27.3 | % | ||||
Professional fees | 1,299 | 2,282 | (43.1 | )% | ||||
Advertising | 1,062 | 959 | 10.7 | % | ||||
FDIC deposit insurance | 545 | 375 | 45.3 | % | ||||
Directors' fees | 217 | 306 | (29.1 | )% | ||||
Amortization of core deposit intangible | 851 | 862 | (1.3 | )% | ||||
Other general and administrative | 1,558 | 1,588 | (1.9 | )% | ||||
Total noninterest expense | 21,286 | 20,918 | 1.8 | % | ||||
Income (loss) before income taxes | 4,332 | (261 | ) | NM | ||||
Provision (benefit) for income taxes | 1,327 | (292 | ) | NM | ||||
Net income | $ | 3,005 | $ | 31 | 9,593.5 | % | ||
Earnings per common share: | ||||||||
Basic | $ | 0.11 | n/a | |||||
Diluted | $ | 0.11 | n/a | |||||
Weighted average shares outstanding: | ||||||||
Basic | 26,284,201 | n/a | ||||||
Diluted | 26,284,201 | n/a | ||||||
8
Blue Hills Bancorp Inc. | |||||||||||||||
Consolidated Statements of Operations - Trend | |||||||||||||||
Quarters Ended | |||||||||||||||
(Dollars in thousands, except share data) | June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||
2015 | 2015 | 2014 | 2014 | 2014 | |||||||||||
Interest and fees on loans | $ | 10,759 | $ | 10,427 | $ | 10,207 | $ | 9,725 | $ | 9,399 | |||||
Interest on securities | 2,237 | 2,136 | 2,027 | 1,892 | 2,003 | ||||||||||
Dividends | 112 | 100 | 2,221 | 1,388 | 119 | ||||||||||
Other | 22 | 19 | 30 | 65 | 30 | ||||||||||
Total interest and dividend income | 13,130 | 12,682 | 14,485 | 13,070 | 11,551 | ||||||||||
Interest on deposits | 1,745 | 1,763 | 1,675 | 1,376 | 1,348 | ||||||||||
Interest on borrowings | 270 | 254 | 243 | 275 | 326 | ||||||||||
Total interest expense | 2,015 | 2,017 | 1,918 | 1,651 | 1,674 | ||||||||||
Net interest and dividend income | 11,115 | 10,665 | 12,567 | 11,419 | 9,877 | ||||||||||
Provision for loan losses | 544 | 279 | 270 | 1,438 | 959 | ||||||||||
Net interest and dividend income, after provision for loan losses | 10,571 | 10,386 | 12,297 | 9,981 | 8,918 | ||||||||||
Deposit account fees | 335 | 333 | 342 | 337 | 343 | ||||||||||
Interchange and ATM fees | 377 | 326 | 351 | 390 | 371 | ||||||||||
Mortgage banking | 83 | 101 | 300 | 341 | 75 | ||||||||||
Loan level derivative fee income | 770 | 4 | 157 | 296 | 57 | ||||||||||
Realized securities gains and impairment losses, net | 267 | 1,318 | 434 | 349 | 1,191 | ||||||||||
Bank-owned life insurance income | 252 | 253 | 261 | 250 | 246 | ||||||||||
Bank-owned life insurance death benefit gains | — | — | 182 | — | — | ||||||||||
Pension curtailment gain | — | — | — | 1,304 | — | ||||||||||
Miscellaneous | 393 | (151 | ) | 267 | 107 | 27 | |||||||||
Total noninterest income | 2,477 | 2,184 | 2,294 | 3,374 | 2,310 | ||||||||||
Salaries and employee benefits | 5,641 | 5,489 | 5,543 | 5,424 | 5,212 | ||||||||||
Occupancy and equipment | 1,464 | 1,498 | 1,256 | 1,150 | 1,298 | ||||||||||
Data processing | 843 | 819 | 878 | 805 | 701 | ||||||||||
Professional fees | 667 | 632 | 575 | 694 | 1,123 | ||||||||||
Advertising | 562 | 500 | 653 | 815 | 658 | ||||||||||
FDIC deposit insurance | 253 | 292 | 532 | 360 | 196 | ||||||||||
Directors' fees | 93 | 124 | 30 | 150 | 156 | ||||||||||
Amortization of core deposit intangible | 414 | 437 | 461 | 485 | 509 | ||||||||||
Charitable Foundation contribution | — | — | — | 7,000 | — | ||||||||||
Other general and administrative | 723 | 835 | 814 | 865 | 809 | ||||||||||
Total noninterest expense | 10,660 | 10,626 | 10,742 | 17,748 | 10,662 | ||||||||||
Income (loss) before income taxes | 2,388 | 1,944 | 3,849 | (4,393 | ) | 566 | |||||||||
Provision (benefit) for income taxes | 689 | 638 | 1,104 | (1,435 | ) | 137 | |||||||||
Net income (loss) | $ | 1,699 | $ | 1,306 | $ | 2,745 | $ | (2,958 | ) | $ | 429 | ||||
Earnings per common share: | |||||||||||||||
Basic | $ | 0.06 | $ | 0.05 | $ | 0.10 | n/a | n/a | |||||||
Diluted | $ | 0.06 | $ | 0.05 | $ | 0.10 | n/a | n/a | |||||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 26,293,560 | 26,274,738 | 26,243,957 | n/a | n/a | ||||||||||
Diluted | 26,293,560 | 26,274,738 | 26,243,957 | n/a | n/a | ||||||||||
9
Blue Hills Bancorp Inc. | ||||||||||||||||||||||||||
Average Balances/Yields | ||||||||||||||||||||||||||
(Dollars in thousands) | Quarters Ended | |||||||||||||||||||||||||
June 30, 2015 | March 31, 2015 | June 30, 2014 | ||||||||||||||||||||||||
Average balance | Interest | Yield/Cost | Average balance | Interest | Yield/Cost | Average balance | Interest | Yield/Cost | ||||||||||||||||||
Interest-earning assets | ||||||||||||||||||||||||||
Total loans (1) | $ | 1,223,681 | $ | 10,812 | 3.54 | % | $ | 1,178,716 | $ | 10,470 | 3.60 | % | $ | 969,417 | $ | 9,454 | 3.91 | % | ||||||||
Securities (1) | 429,348 | 2,332 | 2.18 | 422,092 | 2,221 | 2.13 | 422,335 | 2,128 | 2.02 | |||||||||||||||||
Other interest earning assets and FHLB stock | 42,832 | 73 | 0.68 | 50,603 | 70 | 0.56 | 94,149 | 71 | 0.30 | |||||||||||||||||
Total interest-earning assets | 1,695,861 | 13,217 | 3.13 | % | 1,651,411 | 12,761 | 3.13 | % | 1,485,901 | 11,653 | 3.15 | % | ||||||||||||||
Non-interest-earning assets | 92,390 | 97,427 | 90,026 | |||||||||||||||||||||||
Total assets | $ | 1,788,251 | $ | 1,748,838 | $ | 1,575,927 | ||||||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||||||||||
NOW | $ | 123,904 | $ | 14 | 0.05 | % | $ | 122,226 | $ | 14 | 0.05 | % | $ | 121,263 | $ | 19 | 0.06 | % | ||||||||
Regular savings | 298,850 | 292 | 0.39 | 301,135 | 319 | 0.43 | 345,837 | 329 | 0.38 | |||||||||||||||||
Money market | 297,903 | 471 | 0.63 | 297,359 | 508 | 0.69 | 191,972 | 251 | 0.52 | |||||||||||||||||
Certificates of deposit | 371,150 | 968 | 1.05 | 353,480 | 922 | 1.06 | 359,668 | 749 | 0.84 | |||||||||||||||||
Total interest-bearing deposits | 1,091,807 | 1,745 | 0.64 | 1,074,200 | 1,763 | 0.67 | 1,018,740 | 1,348 | 0.53 | |||||||||||||||||
Borrowings | 134,362 | 270 | 0.81 | 108,556 | 254 | 0.95 | 206,077 | 326 | 0.63 | |||||||||||||||||
Total interest-bearing liabilities | 1,226,169 | 2,015 | 0.66 | % | 1,182,756 | 2,017 | 0.69 | % | 1,224,817 | 1,674 | 0.55 | % | ||||||||||||||
Non-interest-bearing deposits | 130,276 | 125,915 | 112,849 | |||||||||||||||||||||||
Other non-interest-bearing liabilities | 16,091 | 25,681 | 63,496 | |||||||||||||||||||||||
Total liabilities | 1,372,536 | 1,334,352 | 1,401,162 | |||||||||||||||||||||||
Stockholders' equity | 415,715 | 414,486 | 174,765 | |||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 1,788,251 | $ | 1,748,838 | $ | 1,575,927 | ||||||||||||||||||||
Net interest and dividend income (FTE) | 11,202 | 10,744 | 9,979 | |||||||||||||||||||||||
Less: FTE adjustment | (87 | ) | (79 | ) | (102 | ) | ||||||||||||||||||||
Net interest and dividend income (GAAP) | $ | 11,115 | $ | 10,665 | $ | 9,877 | ||||||||||||||||||||
Net interest rate spread (FTE) | 2.47 | % | 2.44 | % | 2.60 | % | ||||||||||||||||||||
Net interest margin (FTE) | 2.65 | % | 2.64 | % | 2.69 | % | ||||||||||||||||||||
Total deposit cost | 0.57 | % | 0.60 | % | 0.48 | % | ||||||||||||||||||||
(1) Beginning this quarter, interest income on tax-exempt securities and loans has been adjusted to a fully taxable-equivalent (FTE) basis using a federal tax rate of 34%. Prior periods have been restated to reflect this change.
10
Blue Hills Bancorp Inc. | |||||||||||||||||
Average Balances/Yields | |||||||||||||||||
(Dollars in thousands) | Year to Date | ||||||||||||||||
June 30, 2015 | June 30, 2014 | ||||||||||||||||
Average balance | Interest | Yield/ Cost | Average balance | Interest | Yield/ Cost | ||||||||||||
Interest-earning assets | |||||||||||||||||
Total loans (1) | $ | 1,201,323 | $ | 21,282 | 3.57 | % | $ | 925,331 | $ | 17,560 | 3.83 | % | |||||
Securities (1) | 425,740 | 4,553 | 2.16 | 432,652 | 4,241 | 1.98 | |||||||||||
Other interest earning assets and FHLB stock | 46,696 | 143 | 0.62 | 70,295 | 123 | 0.35 | |||||||||||
Total interest-earning assets | 1,673,759 | 25,978 | 3.13 | % | 1,428,278 | 21,924 | 3.10 | % | |||||||||
Non-interest-earning assets | 94,894 | 83,328 | |||||||||||||||
Total assets | $ | 1,768,653 | $ | 1,511,606 | |||||||||||||
Interest-bearing liabilities | |||||||||||||||||
NOW | $ | 123,070 | $ | 28 | 0.05 | % | $ | 118,113 | $ | 40 | 0.07 | % | |||||
Regular savings | 299,986 | 611 | 0.41 | 348,094 | 684 | 0.40 | |||||||||||
Money market | 297,633 | 979 | 0.66 | 181,187 | 460 | 0.51 | |||||||||||
Certificates of deposit | 362,364 | 1,890 | 1.05 | 357,577 | 1,515 | 0.85 | |||||||||||
Total interest-bearing deposits | 1,083,053 | 3,508 | 0.65 | 1,004,971 | 2,699 | 0.54 | |||||||||||
Borrowings | 121,530 | 524 | 0.87 | 185,818 | 630 | 0.68 | |||||||||||
Total interest-bearing liabilities | 1,204,583 | 4,032 | 0.67 | % | 1,190,789 | 3,329 | 0.56 | % | |||||||||
Non-interest-bearing deposits | 128,108 | 104,567 | |||||||||||||||
Other non-interest-bearing liabilities | 20,858 | 42,143 | |||||||||||||||
Total liabilities | 1,353,549 | 1,337,499 | |||||||||||||||
Stockholders' equity | 415,104 | 174,107 | |||||||||||||||
Total liabilities and stockholders' equity | $ | 1,768,653 | $ | 1,511,606 | |||||||||||||
Net interest and dividend income (FTE) | 21,946 | 18,595 | |||||||||||||||
Less: FTE adjustment | (166 | ) | (204 | ) | |||||||||||||
Net interest and dividend income (GAAP) | $ | 21,780 | $ | 18,391 | |||||||||||||
Net interest rate spread (FTE) | 2.46 | % | 2.54 | % | |||||||||||||
Net interest margin (FTE) | 2.64 | % | 2.63 | % | |||||||||||||
Total deposit cost | 0.58 | % | 0.49 | % | |||||||||||||
(1) Beginning this quarter, interest income on tax-exempt securities and loans has been adjusted to a fully taxable-equivalent (FTE) basis using a federal tax rate of 34%. Prior periods have been restated to reflect this change.
11
Blue Hills Bancorp, Inc. | |||||||||||||||
Average Balances - Trend | |||||||||||||||
Quarters Ended | |||||||||||||||
(Dollars in thousands) | June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||
2015 | 2015 | 2014 | 2014 | 2014 | |||||||||||
Interest-earning assets | |||||||||||||||
Total loans | $ | 1,223,681 | $ | 1,178,716 | $ | 1,148,744 | $ | 1,085,951 | $ | 969,417 | |||||
Securities | 429,348 | 422,092 | 416,867 | 414,864 | 422,335 | ||||||||||
Other interest earning assets and FHLB stock | 42,832 | 50,603 | 59,028 | 113,163 | 94,149 | ||||||||||
Total interest-earning assets | 1,695,861 | 1,651,411 | 1,624,639 | 1,613,978 | 1,485,901 | ||||||||||
Non-interest-earning assets | 92,390 | 97,427 | 92,241 | 91,717 | 90,026 | ||||||||||
Total assets | $ | 1,788,251 | $ | 1,748,838 | $ | 1,716,880 | $ | 1,705,695 | $ | 1,575,927 | |||||
Interest-bearing liabilities | |||||||||||||||
NOW | $ | 123,904 | $ | 122,226 | $ | 136,210 | $ | 124,846 | $ | 121,263 | |||||
Regular savings | 298,850 | 301,135 | 310,591 | 336,151 | 345,837 | ||||||||||
Money market | 297,903 | 297,359 | 279,622 | 197,500 | 191,972 | ||||||||||
Certificates of deposit | 371,150 | 353,480 | 356,255 | 346,807 | 359,668 | ||||||||||
Total interest-bearing deposits | 1,091,807 | 1,074,200 | 1,082,678 | 1,005,304 | 1,018,740 | ||||||||||
Borrowings | 134,362 | 108,556 | 83,054 | 145,848 | 206,077 | ||||||||||
Total interest-bearing liabilities | 1,226,169 | 1,182,756 | 1,165,732 | 1,151,152 | 1,224,817 | ||||||||||
Non-interest-bearing deposits | 130,276 | 125,915 | 122,263 | 117,393 | 112,849 | ||||||||||
Other non-interest-bearing liabilities | 16,091 | 25,681 | 16,876 | 78,377 | 63,496 | ||||||||||
Total liabilities | 1,372,536 | 1,334,352 | 1,304,871 | 1,346,922 | 1,401,162 | ||||||||||
Stockholders' equity | 415,715 | 414,486 | 412,009 | 358,773 | 174,765 | ||||||||||
Total liabilities and stockholders' equity | $ | 1,788,251 | $ | 1,748,838 | $ | 1,716,880 | $ | 1,705,695 | $ | 1,575,927 | |||||
12
Blue Hills Bancorp, Inc. | |||||
Yield Trend | |||||
Quarters Ended | |||||
June 30, | March 31, | December 31, | September 30, | June 30, | |
2015 | 2015 | 2014 | 2014 | 2014 | |
Interest-earning assets | |||||
Total loans (1) | 3.54% | 3.60% | 3.54% | 3.57% | 3.91% |
Securities (1) | 2.18% | 2.13% | 4.05% | 3.14% | 2.02% |
Other interest earning assets and FHLB stock | 0.68% | 0.56% | 0.49% | 0.38% | 0.30% |
Total interest-earning assets | 3.13% | 3.13% | 3.56% | 3.24% | 3.15% |
Interest-bearing liabilities | |||||
NOW | 0.05% | 0.05% | 0.09% | 0.06% | 0.06% |
Regular savings | 0.39% | 0.43% | 0.44% | 0.42% | 0.38% |
Money market | 0.63% | 0.69% | 0.67% | 0.54% | 0.52% |
Certificates of deposit | 1.05% | 1.06% | 0.93% | 0.83% | 0.84% |
Total interest-bearing deposits | 0.64% | 0.67% | 0.61% | 0.54% | 0.53% |
Borrowings | 0.81% | 0.95% | 1.16% | 0.75% | 0.63% |
Total interest-bearing liabilities | 0.66% | 0.69% | 0.65% | 0.57% | 0.55% |
Net interest rate spread (FTE) | 2.47% | 2.44% | 2.91% | 2.67% | 2.60% |
Net interest margin (FTE) | 2.65% | 2.64% | 3.09% | 2.83% | 2.69% |
Total deposit cost | 0.57% | 0.60% | 0.55% | 0.49% | 0.48% |
(1) Beginning this quarter, interest income on tax-exempt securities and loans has been adjusted to a fully taxable-equivalent (FTE) basis using a federal tax rate of 34%. Prior periods have been restated to reflect this change.
13
Blue Hills Bancorp Inc. | |||||||||||||||
Reconciliation of GAAP to Non-GAAP Net Income (Loss) | |||||||||||||||
Quarters Ended | |||||||||||||||
(Dollars in thousands) | June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||
2015 | 2015 | 2014 | 2014 | 2014 | |||||||||||
Net income (loss)-GAAP basis | $ | 1,699 | $ | 1,306 | $ | 2,745 | $ | (2,958 | ) | $ | 429 | ||||
Noninterest income adjustments: | |||||||||||||||
Less Bank-owned life insurance death benefit gains | — | — | (182 | ) | — | — | |||||||||
Less pension curtailment gain | — | — | — | (1,304 | ) | — | |||||||||
Noninterest expense adjustments: | |||||||||||||||
Add Nantucket Bank acquisition expenses | — | — | — | 2 | 173 | ||||||||||
Add expenses related to mutual to stock conversion | — | — | — | 51 | 330 | ||||||||||
Add Charitable Foundation contribution | — | — | — | 7,000 | — | ||||||||||
Income tax effects of adjustments | — | — | — | (1,955 | ) | (171 | ) | ||||||||
Net income-Non-GAAP basis | $ | 1,699 | $ | 1,306 | $ | 2,563 | $ | 836 | $ | 761 | |||||
Year to Date | ||||||
June 30, 2015 | June 30, 2014 | |||||
Net income- GAAP basis | $ | 3,005 | $ | 31 | ||
Noninterest income adjustments: | ||||||
Less Bank-owned life insurance death benefit gains | — | — | ||||
Less pension curtailment gain | — | — | ||||
Noninterest expense adjustments: | ||||||
Add Nantucket Bank acquisition expenses | — | 948 | ||||
Add expenses related to mutual to stock conversion | — | 818 | ||||
Add Charitable Foundation contribution | — | — | ||||
Income tax effects of adjustments | — | (600 | ) | |||
Net income Non-GAAP basis | $ | 3,005 | $ | 1,197 | ||
The Company’s management believes that the presentation of net income on a non-GAAP basis excluding nonrecurring items provides useful information for evaluating the Company’s operating results and any related trends that may be affecting the Company’s business. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP.
14
Blue Hills Bancorp, Inc. | |||||||||||||
Selected Financial Highlights | |||||||||||||
Quarters Ended | |||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||
2015 | 2015 | 2014 | 2014 | 2014 | |||||||||
Performance Ratios (annualized) | |||||||||||||
Basic and diluted EPS | |||||||||||||
GAAP | $ | 0.06 | $ | 0.05 | $ | 0.10 | n/a | n/a | |||||
Non-GAAP(1) | $ | 0.06 | $ | 0.05 | $ | 0.10 | n/a | n/a | |||||
Return (loss) on average assets (ROAA): | |||||||||||||
GAAP | 0.38 | % | 0.30 | % | 0.63 | % | (0.69 | )% | 0.11 | % | |||
Non-GAAP(1) | 0.38 | % | 0.30 | % | 0.59 | % | 0.19 | % | 0.19 | % | |||
Return (loss) on average equity (ROAE): | |||||||||||||
GAAP | 1.64 | % | 1.28 | % | 2.64 | % | (3.27 | )% | 0.98 | % | |||
Non-GAAP(1) | 1.64 | % | 1.28 | % | 2.47 | % | 0.92 | % | 1.75 | % | |||
Return (loss) on average tangible common equity (ROATCE): | |||||||||||||
GAAP | 1.70 | % | 1.32 | % | 2.73 | % | (3.53 | )% | 1.21 | % | |||
Non-GAAP(1) | 1.70 | % | 1.32 | % | 2.55 | % | 1.00 | % | 2.14 | % | |||
Efficiency Ratio: | |||||||||||||
GAAP | 78 | % | 83 | % | 72 | % | 120 | % | 87 | % | |||
Non-GAAP(1) | 78 | % | 83 | % | 73 | % | 79 | % | 83 | % | |||
Year to Date | |||||
June 30, 2015 | June 30, 2014 | ||||
Performance Ratios (annualized) | |||||
Basic and diluted EPS | |||||
GAAP | $ | 0.11 | n/a | ||
Non-GAAP(1) | $ | 0.11 | n/a | ||
Return on average assets (ROAA): | |||||
GAAP | 0.34 | % | — | % | |
Non-GAAP(1) | 0.34 | % | 0.16 | % | |
Return on average equity (ROAE): | |||||
GAAP | 1.46 | % | 0.04 | % | |
Non-GAAP(1) | 1.46 | % | 1.39 | % | |
Return on average tangible common equity (ROATCE): | |||||
GAAP | 1.51 | % | 0.04 | % | |
Non-GAAP(1) | 1.51 | % | 1.69 | % | |
Efficiency Ratio: | |||||
GAAP | 81 | % | 94 | % | |
Non-GAAP(1) | 81 | % | 86 | % | |
(1) See page 14 for a reconciliation of Non-GAAP financial measures.
15
Blue Hills Bancorp, Inc. | ||||||||||||||||
Selected Financial Highlights | ||||||||||||||||
(Dollars in thousands, except share data) | At or for the Quarters Ended | At or for the Six Months Ended | ||||||||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||
2015 | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Asset Quality | ||||||||||||||||
Nonperforming Assets | $ | 4,938 | $ | 4,766 | $ | 4,502 | $ | 4,938 | $ | 4,502 | ||||||
Nonperforming Assets/Total Assets | 0.27 | % | 0.27 | % | 0.25 | % | 0.27 | % | 0.25 | % | ||||||
Allowance for Loan Losses/Total Loans | 1.08 | % | 1.12 | % | 1.13 | % | 1.08 | % | 1.13 | % | ||||||
Net Charge-offs | $ | 5 | $ | 14 | $ | 13 | $ | 19 | $ | 52 | ||||||
Annualized Net Charge-offs/Average Loans | — | % | — | % | 0.01 | % | — | % | 0.01 | % | ||||||
Allowance for Loan Losses/ Nonperforming Loans | 279 | % | 278 | % | 251 | % | 279 | % | 251 | % | ||||||
Capital/Other | ||||||||||||||||
Common shares outstanding | 28,466,813 | 28,466,813 | n/a | |||||||||||||
Book value per share | $ | 14.53 | $ | 14.58 | n/a | |||||||||||
Tangible book value per share | $ | 14.09 | $ | 14.12 | n/a | |||||||||||
Tangible Common Equity/Tangible Assets | 21.90 | % | 23.04 | % | 7.91 | % | ||||||||||
Full-time Equivalent Employees | 203 | 197 | 209 | |||||||||||||
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