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| 8-K - 8-K EARNINGS RELEASE Q3 2016 - Blue Hills Bancorp, Inc. | a2016q38-k.htm |
EXHIBIT 99.1
Blue Hills Bancorp, Inc. Reports Third Quarter Earnings
Announces Completion of Second Stock Repurchase Program
NORWOOD, Mass.--(GLOBE NEWSWIRE)- Blue Hills Bancorp, Inc. (the “Company” or "Blue Hills Bancorp") (NASDAQ: BHBK), the parent of Blue Hills Bank (the "Bank"), today announced net income of $1,630,000, or $0.07 per diluted share, for the third quarter of 2016 compared to net income of $1,358,000, or $0.05 per diluted share, for the second quarter of 2016 and net income of $1,810,000, or $0.07 per diluted share, for the third quarter of 2015. For the nine months ended September 30, 2016, net income was $4,655,000, or $0.19 per diluted share, versus net income of $4,815,000, or $0.18 per diluted share, for the nine months ended September 30, 2015.
As previously disclosed in a current report on Form 8-K as filed with the Securities and Exchange Commission on September 13, 2016, the Company recorded a charge-off of $3.3 million in the third quarter of 2016 related to problem loans to one commercial customer. This charge-off, when combined with the effect of a specific reserve of $558,000 ($366,000 after-tax) established against these loans during the second quarter of 2016, resulted in a pre-tax charge against third quarter income of $2.7 million ($1.8 million after-tax). Excluding these charges, net income for the third quarter of 2016 would have been $3.5 million, or $0.14 per diluted share, while net income for the second quarter would have been $1.7 million, or $0.07 per diluted share. For the nine months ended September 30, 2016, net income would have been $6.9 million, or $0.28 per diluted share.
Commenting on the Company's results, William Parent, President and Chief Executive Officer of Blue Hills Bancorp, said, "The strength in our core businesses is clearly visible in our third quarter results. Our commercial and residential lending units continue to drive net interest income improvement through loan originations and both businesses also contributed to the improvement in fee income seen this quarter. The mortgage business, in particular, had a strong quarter more than doubling the originations in the third quarter of last year. Our deposit business continues to be a valuable source of funding for our lending operations and we are excited by the recent opening of our newest branch in the Seaport District of Boston. Investment spending has been key to transforming the Company into a full service community bank, but at the same time achieving positive operating leverage is very important to us. This is evident when looking at the first nine months of 2016 as pre-tax income before the provision for loan losses (excluding securities gains and bank-owned life insurance death benefit gains) has grown 29% from the comparable period in 2015. As we move forward, we will continue to be vigilant on credit quality and will pursue all legal remedies to recover losses and costs related to the $3.3 million commercial loan charge-off we took in the third quarter. We will also continue to deploy our excess capital through share buybacks and other avenues."
BALANCE SHEET
Compared to June 30, 2016, total assets grew $73 million, or 3%, to $2.3 billion at September 30, 2016. The increase was due to loan growth as total loans increased $74 million, or 4%, to $1.8 billion at September 30, 2016 driven by higher levels of residential mortgage loans and commercial real estate loans, partially offset by declines in other categories. Aside from the increase in loans, there were no other material changes to the balance sheet compared to June 30, 2016.
Compared to September 30, 2015, total assets increased $379 million, or 20%. Loans also drove the growth in total assets in this comparison, increasing $392 million, or 29%. By category, the increase was driven by residential mortgages, which were up $205 million, or 38%, and commercial real estate loans, which were up $163 million, or 33%. All other loan categories had minor changes. Residential mortgage loan originations were $172 million in the third quarter of 2016, up 123% from the third quarter of 2015, as the expanded origination team continued to grow the business and gain market share. In the third quarter of 2016, commercial loans (real estate and non-real estate combined) totaling $82 million (of which 31% related to commercial business loans) were added to the balance sheet compared to $91 million in the third quarter of 2015 (of which 39% related to commercial business loans). The growth in loans was partially offset by a decline in securities available for sale, which were $210 million at September 30, 2016, down 9% from $232 million at September 30, 2015. The decline reflects a lower level of corporate and municipal bonds, as well as a lower level of mutual funds.
Compared to June 30, 2016, deposits grew $81 million, or 5%, to $1.7 billion at September 30, 2016. The increase from the second quarter of 2016 was driven by increases in consumer, commercial and brokered deposits. By category, the growth was mainly reflected in NOW & demand deposits, which were up $39 million and brokered certificates of deposit, which were up $34 million. Compared to September 30, 2015, deposits grew $336 million, or 25%, and included growth in all customer segments (consumer, small business, commercial and municipal). By category, the most significant increase was seen in money market deposits, which were up $177 million. In addition, brokered certificates of deposit increased $85 million and NOW and demand deposits were up $53 million. Borrowings also grew $49 million from a year ago, which helped support the growth in the loan portfolio. A $60 million increase in long-term borrowings was partially offset by an $11 million decline in short-term borrowings.
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Stockholders’ equity was $390 million at September 30, 2016 compared to $392 million at June 30, 2016 and $408 million at September 30, 2015. The decline in stockholders' equity from a year ago mainly reflects share repurchases, as well as the payment of common stock dividends. These declines were partially offset by $7.1 million of earnings over the past four quarters.
During the third quarter of 2016, the Company repurchased 400,900 shares of stock at an average price of $14.32 for a total cost of $5.7 million. This brings total repurchases over the past five quarters to 2,447,140 shares at an average price of $14.15 for a total cost of $34.6 million. At September 30, 2016, the Company had repurchased 92% of the 1,119,000 shares authorized under its second share repurchase program, which was announced in February 2016. The second share repurchase program was completed in October and as previously announced on September 13, 2016, the Board of Directors authorized the Company’s third stock repurchase program pursuant to which the Company may purchase up to 1,345,087 shares of its issued and outstanding shares of common stock, which represents approximately 5% of the Company's issued and outstanding shares. The third repurchase program commenced upon the completion of the second program in October.
NET INTEREST AND DIVIDEND INCOME
Net interest and dividend income was $14.5 million in the third quarter of 2016, up $1.2 million, or 9%, from $13.3 million in the second quarter of 2016. Net interest margin improved to 2.67% in the third quarter of 2016 from 2.56% in the second quarter of 2016.
Net interest and dividend income on a fully taxable equivalent basis was $14.6 million for the third quarter of 2016, up $1.2 million, or 9%, from $13.4 million for the second quarter of 2016. Net interest margin on a fully taxable equivalent basis improved to 2.68% for the third quarter of 2016 from 2.58% for the second quarter of 2016. Included in net interest income and margin is $193,000 of accelerated bond discount accretion in the third quarter of 2016 and $203,000 of accelerated bond premium amortization in the second quarter of 2016. The amounts in both quarters related to the redemption of bonds.
The table shown below provides a reconciliation of reported to adjusted net interest and dividend income and margin for the last five quarters. Commentary which follows the table will focus on changes in adjusted net interest income and margin.
(Unaudited, dollars in thousands) | September 30, 2016 | June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 | ||||||||||
Net Interest Income | |||||||||||||||
Reported net interest and dividend income | $ | 14,495 | $ | 13,316 | $ | 13,201 | $ | 14,572 | $ | 13,205 | |||||
FTE adjustment | 65 | 77 | 87 | 87 | 88 | ||||||||||
Reported net interest and dividend income (FTE) | 14,560 | 13,393 | 13,288 | 14,659 | 13,293 | ||||||||||
Mutual fund dividends | (96 | ) | — | (21 | ) | (2,066 | ) | (1,509 | ) | ||||||
Purchase accounting accretion | (115 | ) | (133 | ) | (127 | ) | (303 | ) | (142 | ) | |||||
Accelerated bond amortization/(accretion) on note redemptions | (193 | ) | 203 | — | — | — | |||||||||
Adjusted net interest and dividend income (FTE) (1) | $ | 14,156 | $ | 13,463 | $ | 13,140 | $ | 12,290 | $ | 11,642 | |||||
Net Interest Margin | |||||||||||||||
Reported net interest margin | 2.67 | % | 2.56 | % | 2.61 | % | 3.03 | % | 2.94 | % | |||||
FTE adjustment | 0.01 | 0.02 | 0.01 | 0.01 | 0.02 | ||||||||||
Reported net interest margin (FTE) | 2.68 | 2.58 | 2.62 | 3.04 | 2.96 | ||||||||||
Mutual fund dividends (2) | 0.03 | 0.05 | 0.06 | (0.36 | ) | (0.27 | ) | ||||||||
Purchase accounting accretion (2) | (0.02 | ) | (0.03 | ) | (0.03 | ) | (0.07 | ) | (0.03 | ) | |||||
Accelerated bond amortization/(accretion) on note redemptions | (0.04 | ) | 0.04 | — | — | — | |||||||||
Adjusted net interest margin (FTE) (1) | 2.65 | % | 2.64 | % | 2.65 | % | 2.61 | % | 2.66 | % | |||||
(1) Management believes that it is a standard practice in the banking industry to present net interest margin and net interest income on a fully taxable equivalent basis (FTE). Therefore, management believes, these measures provide useful information to investors by allowing them to make peer comparisons. | |||||||||||||||
(2) Note: In calculating the net interest margin impact of mutual fund dividends and purchase accounting accretion, average earning assets were adjusted to remove the average balances associated with each item. In quarters where mutual fund dividend income is low, the removal of the dividend and its related average balance has a positive impact on the adjusted net interest margin. Management believes this adjusted net interest margin is useful because of the volatility or non-recurring nature of certain items from quarter to quarter. | |||||||||||||||
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Adjusted net interest and dividend income on a fully tax equivalent basis increased $693,000, or 5%, to $14.2 million in the third quarter of 2016 compared to the second quarter of 2016. The increase was mainly driven by a $91 million, or 6%, increase in average loans due to higher levels of residential mortgages and commercial real estate loans. In addition, the improvement in adjusted net interest income was helped by a one basis point increase in adjusted net interest margin to 2.65% for the third quarter of 2016.
Compared to the third quarter of 2015, adjusted net interest and dividend income on a fully taxable equivalent basis increased $2.5 million, or 22%, while adjusted net interest margin declined by one basis point to 2.65%. As was the case in the comparison with the second quarter of 2016, the growth in adjusted net interest and dividend income was mainly due to a higher level of average loans which were up $410 million, or 31%, from the third quarter of last year driven mainly by increases in residential mortgages, commercial real estate loans, and construction loans.
The Company received mutual fund dividends in the second halves of 2015 and 2014 totaling $3.6 million and $3.5 million, respectively. As previously disclosed, the Company believes that total mutual fund dividends for the second half of 2016 will be meaningfully lower than in either of the past two years. Mutual fund dividends in the third quarter of 2016 were $96,000, compared to $1.5 million in the third quarter of 2015.
NONINTEREST INCOME
Noninterest income was $4.1 million in the third quarter of 2016, up $1.3 million, or 47%, from $2.8 million in the second quarter of 2016. The increase was mainly due to the following factors:
• | Mortgage banking revenue was $1.3 million in the third quarter, up $731,000, or 138%, from $531,000 for the second quarter. This reflects a significant increase in mortgage originations from the second quarter and the revenue improvement was mainly due to a higher level of gains on the sale of loans and the valuation of mortgage derivatives. |
• | Loan level derivative fee income was $770,000 for the third quarter compared to $322,000 for the second 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 $214,000 in the third quarter from $128,000 in the second quarter. As has been the case in most quarters, miscellaneous income is impacted by the portfolio of commercial loan customer back-to-back interest rate swap contracts where customers opt to convert their loans from floating to fixed rate via interest rate swaps. While fee income from these contracts is recorded to loan level derivative fee income, GAAP requires that the Company must mark these contracts to fair value over the life of each swap and these valuation marks are reflected in miscellaneous income. The Company recorded positive credit valuation marks in the third quarter as interest rates increased and negative credit valuation marks in the second quarter as interest rates declined. 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 each contract. The improvement in miscellaneous income related to the interest rate swap contracts was partially offset by the absence of income received in the second quarter on CRA-qualified SBIC investments. |
Compared to the third quarter of 2015, noninterest income increased $2.4 million, or 144%. The increase was primarily due to higher mortgage banking revenue, securities gains, bank-owned life insurance death benefit gains, loan level derivative fee income and miscellaneous income. The latter was impacted by the Company recording positive credit valuation marks on commercial loan customer interest rate swap contracts in the third quarter of 2016 compared to negative marks in the third quarter of 2015.
NONINTEREST EXPENSE
Noninterest expense was $13.2 million in the third quarter of 2016, up $299,000, or 2%, from the second quarter. By category, the more significant increase was in salaries and benefits expense, which grew $458,000 from the second quarter. This was mainly due to a higher level of mortgage-related commissions reflecting an increase in originations as well as the recording of a $359,000 one-time adjustment in the third quarter to appropriately match the deferral and accrual of the mortgage-related commissions. The third quarter also included approximately $200,000 of expenses, the bulk of which is in professional fees, related, primarily, to litigation costs associated with the problem loans to one commercial customer that resulted in a $3.3
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million chargeoff in the third quarter. Several categories of noninterest expense were lower in the third quarter compared to the second quarter with the biggest decline seen in advertising expense, which was down $224,000, or 31%.
Compared to the third quarter of 2015, noninterest expense increased $2.4 million, or 22%. A major factor driving this increase was the recording of $1.2 million of expense in the third quarter of 2016 related to the vesting of stock awards and options under the Equity Incentive Plan. Approximately 80% of the expense related to the Equity Incentive Plan is included in salaries and benefits expense and the remainder is reflected in directors' fees. The comparison with the prior year was also impacted by higher mortgage-related commissions, including the one-time adjustment discussed above, and the costs associated with the problem loans to one commercial customer referred to above. In addition, franchise growth also contributed to the increase in noninterest expense, including the opening of a new branch in Westwood in the fourth quarter of 2015, as well as new loan and mortgage production offices and the onboarding of new asset-based lending and municipal banking businesses.
ASSET QUALITY
The provision for loan losses, which in all quarters reflects management’s assessment of risks inherent in the loan portfolio, was $2.9 million in the third quarter of 2016 compared to $1.1 million in the second quarter of 2016 and $1.3 million in the third quarter of 2015. The increase in the provision from the second quarter was mainly due to the previously discussed loans charged off to one commercial customer. During the third quarter of 2016, a provision of $2.7 million was recorded on these loans compared to a provision of $558,000 in the second quarter of 2016. Loan growth and loan mix impact the level of provision needed each quarter and a decline in loan growth to 4% in the third quarter from 6% in the second quarter coupled with a change in loan mix resulted in a lower provision, excluding the provision related to the charge-off.
The allowance for loan losses as a percentage of total loans was 1.01% at September 30, 2016 compared to 1.07% at June 30, 2016 and 1.10% at September 30, 2015. The Company had net loan charge-offs of $3.2 million in the third quarter of 2016 ($3.3 million related to the previously discussed problem loans to one commercial customer) compared to net charge-offs of $19,000 in the second quarter of 2016 and net charge-offs of $13,000 in the third quarter of 2015.
Nonperforming assets declined to $7.8 million at September 30, 2016 from $15.0 million at June 30, 2016. Nonperforming assets were $5.0 million at September 30, 2015. The $7.1 million decline in nonperforming assets from the end of the second quarter of this year reflects the aforementioned $3.3 million charge-off related to problem loans to one commercial customer. Loans to this customer on nonaccrual at September 30, 2016 totaled $771,000. In addition, loans to another borrower totaling $4.2 million, which were originally placed on nonaccrual in the fourth quarter of 2015, were removed from nonaccrual in the third quarter of 2016 as the credit situation improved and the loans have been performing in accordance with the terms. Nonperforming assets as a percentage of total assets were 0.34% at September 30, 2016, 0.67% at June 30, 2016 and 0.26% at September 30, 2015.
ABOUT BLUE HILLS BANCORP
Blue Hills Bancorp, Inc., with corporate headquarters in Norwood MA, had assets of $2.3 billion at September 30, 2016 and operates 12 branch offices in Boston, Brookline, Dedham, Hyde Park, Milton, Nantucket, Norwood, West Roxbury, and Westwood, Massachusetts. Blue Hills Bank is a full service, community bank with its main office in Hyde Park, Massachusetts. The Bank's 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 business 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
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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 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
(Unaudited, dollars in thousands) | % Change | ||||||||||||
September 30, 2016 | June 30, 2016 | September 30, 2015 | September 30, 2016 vs. June 30, 2016 | September 30, 2016 vs. September 30, 2015 | |||||||||
Assets | |||||||||||||
Cash and due from banks | $ | 15,490 | $ | 13,710 | $ | 9,447 | 13.0 | % | 64.0 | % | |||
Short term investments | 21,512 | 29,485 | 11,533 | (27.0 | )% | 86.5 | % | ||||||
Total cash and cash equivalents | 37,002 | 43,195 | 20,980 | (14.3 | )% | 76.4 | % | ||||||
Securities available for sale, at fair value | 210,273 | 204,973 | 231,697 | 2.6 | % | (9.2 | )% | ||||||
Securities held to maturity, at amortized cost | 197,863 | 196,454 | 197,632 | 0.7 | % | 0.1 | % | ||||||
Federal Home Loan Bank stock, at cost | 13,505 | 12,833 | 11,702 | 5.2 | % | 15.4 | % | ||||||
Loans held for sale | 2,134 | 6,097 | 21,423 | (65.0 | )% | (90.0 | )% | ||||||
Loans: | |||||||||||||
1-4 family residential | 746,366 | 675,952 | 541,382 | 10.4 | % | 37.9 | % | ||||||
Home equity | 80,604 | 81,649 | 73,494 | (1.3 | )% | 9.7 | % | ||||||
Commercial real estate | 660,458 | 608,669 | 497,217 | 8.5 | % | 32.8 | % | ||||||
Construction | 71,281 | 107,049 | 54,283 | (33.4 | )% | 31.3 | % | ||||||
Total real estate loans | 1,558,709 | 1,473,319 | 1,166,376 | 5.8 | % | 33.6 | % | ||||||
Commercial business | 169,076 | 178,112 | 163,971 | (5.1 | )% | 3.1 | % | ||||||
Consumer | 31,435 | 33,707 | 36,855 | (6.7 | )% | (14.7 | )% | ||||||
Total loans | 1,759,220 | 1,685,138 | 1,367,202 | 4.4 | % | 28.7 | % | ||||||
Allowance for loan losses | (17,730 | ) | (18,079 | ) | (15,082 | ) | (1.9 | )% | 17.6 | % | |||
Loans, net | 1,741,490 | 1,667,059 | 1,352,120 | 4.5 | % | 28.8 | % | ||||||
Premises and equipment, net | 21,362 | 20,136 | 19,485 | 6.1 | % | 9.6 | % | ||||||
Accrued interest receivable | 5,388 | 5,640 | 5,174 | (4.5 | )% | 4.1 | % | ||||||
Goodwill and core deposit intangible | 10,831 | 11,125 | 12,151 | (2.6 | )% | (10.9 | )% | ||||||
Net deferred tax asset | 8,780 | 8,958 | 8,368 | (2.0 | )% | 4.9 | % | ||||||
Bank-owned life insurance | 31,743 | 31,558 | 31,358 | 0.6 | % | 1.2 | % | ||||||
Other assets | 33,295 | 32,733 | 22,348 | 1.7 | % | 49.0 | % | ||||||
Total assets | $ | 2,313,666 | $ | 2,240,761 | $ | 1,934,438 | 3.3 | % | 19.6 | % | |||
Liabilities and Stockholders' Equity | |||||||||||||
Deposits: | |||||||||||||
NOW and demand | $ | 337,225 | $ | 298,178 | $ | 284,720 | 13.1 | % | 18.4 | % | |||
Regular savings | 270,067 | 274,866 | 288,597 | (1.7 | )% | (6.4 | )% | ||||||
Money market | 518,360 | 506,251 | 341,588 | 2.4 | % | 51.8 | % | ||||||
Certificates of deposit | 339,064 | 339,415 | 310,424 | (0.1 | )% | 9.2 | % | ||||||
Brokered money market | 46,235 | 45,231 | 33,924 | 2.2 | % | 36.3 | % | ||||||
Brokered certificates of deposit | 170,506 | 136,965 | 85,705 | 24.5 | % | 98.9 | % | ||||||
Total deposits | 1,681,457 | 1,600,906 | 1,344,958 | 5.0 | % | 25.0 | % | ||||||
Short-term borrowings | 103,700 | 130,000 | 115,000 | (20.2 | )% | (9.8 | )% | ||||||
Long-term debt | 105,000 | 85,000 | 45,000 | 23.5 | % | 133.3 | % | ||||||
Other liabilities | 33,820 | 32,903 | 21,868 | 2.8 | % | 54.7 | % | ||||||
Total liabilities | 1,923,977 | 1,848,809 | 1,526,826 | 4.1 | % | 26.0 | % | ||||||
Common stock | 261 | 265 | 282 | (1.5 | )% | (7.4 | )% | ||||||
Additional paid-in capital | 251,341 | 255,781 | 276,730 | (1.7 | )% | (9.2 | )% | ||||||
Unearned compensation- ESOP | (20,686 | ) | (20,876 | ) | (21,445 | ) | (0.9 | )% | (3.5 | )% | |||
Retained earnings | 158,620 | 157,714 | 153,969 | 0.6 | % | 3.0 | % | ||||||
Accumulated other comprehensive income (loss) | 153 | (932 | ) | (1,924 | ) | (116.4 | )% | (108.0 | )% | ||||
Total stockholders' equity | 389,689 | 391,952 | 407,612 | (0.6 | )% | (4.4 | )% | ||||||
Total liabilities and stockholders' equity | $ | 2,313,666 | $ | 2,240,761 | $ | 1,934,438 | 3.3 | % | 19.6 | % | |||
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Blue Hills Bancorp, Inc.
Consolidated Balance Sheet Trend
(Unaudited, dollars in thousands) | September 30, 2016 | June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 | ||||||||||
Assets | |||||||||||||||
Cash and due from banks | $ | 15,490 | $ | 13,710 | $ | 13,852 | $ | 10,932 | $ | 9,447 | |||||
Short term investments | 21,512 | 29,485 | 18,157 | 22,366 | 11,533 | ||||||||||
Total cash and cash equivalents | 37,002 | 43,195 | 32,009 | 33,298 | 20,980 | ||||||||||
Securities available for sale, at fair value | 210,273 | 204,973 | 237,669 | 231,690 | 231,697 | ||||||||||
Securities held to maturity, at amortized cost | 197,863 | 196,454 | 196,578 | 200,141 | 197,632 | ||||||||||
Federal Home Loan Bank stock, at cost | 13,505 | 12,833 | 16,137 | 13,567 | 11,702 | ||||||||||
Loans held for sale | 2,134 | 6,097 | 3,926 | 12,877 | 21,423 | ||||||||||
Loans: | |||||||||||||||
1-4 family residential | 746,366 | 675,952 | 621,801 | 602,138 | 541,382 | ||||||||||
Home equity | 80,604 | 81,649 | 80,571 | 77,633 | 73,494 | ||||||||||
Commercial real estate | 660,458 | 608,669 | 586,151 | 559,609 | 497,217 | ||||||||||
Construction | 71,281 | 107,049 | 92,481 | 79,386 | 54,283 | ||||||||||
Total real estate loans | 1,558,709 | 1,473,319 | 1,381,004 | 1,318,766 | 1,166,376 | ||||||||||
Commercial business | 169,076 | 178,112 | 168,976 | 182,536 | 163,971 | ||||||||||
Consumer | 31,435 | 33,707 | 36,977 | 39,075 | 36,855 | ||||||||||
Total loans | 1,759,220 | 1,685,138 | 1,586,957 | 1,540,377 | 1,367,202 | ||||||||||
Allowance for loan losses | (17,730 | ) | (18,079 | ) | (16,985 | ) | (17,102 | ) | (15,082 | ) | |||||
Loans, net | 1,741,490 | 1,667,059 | 1,569,972 | 1,523,275 | 1,352,120 | ||||||||||
Premises and equipment, net | 21,362 | 20,136 | 20,099 | 20,015 | 19,485 | ||||||||||
Accrued interest receivable | 5,388 | 5,640 | 5,588 | 5,344 | 5,174 | ||||||||||
Goodwill and core deposit intangible | 10,831 | 11,125 | 11,443 | 11,785 | 12,151 | ||||||||||
Net deferred tax asset | 8,780 | 8,958 | 8,774 | 10,665 | 8,368 | ||||||||||
Bank-owned life insurance | 31,743 | 31,558 | 31,883 | 31,626 | 31,358 | ||||||||||
Other assets | 33,295 | 32,733 | 28,150 | 20,060 | 22,348 | ||||||||||
Total assets | $ | 2,313,666 | $ | 2,240,761 | $ | 2,162,228 | $ | 2,114,343 | $ | 1,934,438 | |||||
Liabilities and Stockholders' Equity | |||||||||||||||
Deposits: | |||||||||||||||
NOW and demand | $ | 337,225 | $ | 298,178 | $ | 285,391 | $ | 288,143 | $ | 284,720 | |||||
Regular savings | 270,067 | 274,866 | 283,586 | 287,344 | 288,597 | ||||||||||
Money market | 518,360 | 506,251 | 408,591 | 368,050 | 341,588 | ||||||||||
Certificates of deposit | 339,064 | 339,415 | 329,012 | 311,978 | 310,424 | ||||||||||
Brokered money market | 46,235 | 45,231 | 46,673 | 41,807 | 33,924 | ||||||||||
Brokered certificates of deposit | 170,506 | 136,965 | 131,352 | 136,527 | 85,705 | ||||||||||
Total deposits | 1,681,457 | 1,600,906 | 1,484,605 | 1,433,849 | 1,344,958 | ||||||||||
Short-term borrowings | 103,700 | 130,000 | 170,000 | 205,000 | 115,000 | ||||||||||
Long-term debt | 105,000 | 85,000 | 85,000 | 55,000 | 45,000 | ||||||||||
Other liabilities | 33,820 | 32,903 | 29,067 | 21,665 | 21,868 | ||||||||||
Total liabilities | 1,923,977 | 1,848,809 | 1,768,672 | 1,715,514 | 1,526,826 | ||||||||||
Common stock | 261 | 265 | 269 | 276 | 282 | ||||||||||
Additional paid-in capital | 251,341 | 255,781 | 260,041 | 269,078 | 276,730 | ||||||||||
Unearned compensation- ESOP | (20,686 | ) | (20,876 | ) | (21,065 | ) | (21,255 | ) | (21,445 | ) | |||||
Retained earnings | 158,620 | 157,714 | 157,090 | 155,918 | 153,969 | ||||||||||
Accumulated other comprehensive income (loss) | 153 | (932 | ) | (2,779 | ) | (5,188 | ) | (1,924 | ) | ||||||
Total stockholders' equity | 389,689 | 391,952 | 393,556 | 398,829 | 407,612 | ||||||||||
Total liabilities and stockholders' equity | $ | 2,313,666 | $ | 2,240,761 | $ | 2,162,228 | $ | 2,114,343 | $ | 1,934,438 | |||||
7
Blue Hills Bancorp, Inc.
Consolidated Statements of Net Income - Quarters
(Unaudited, dollars in thousands, except share data) | Quarters Ended | % Change | |||||||||||
September 30, 2016 | June 30, 2016 | September 30, 2015 | September 30, 2016 vs. June 30, 2016 | September 30, 2016 vs. September 30, 2015 | |||||||||
Interest and fees on loans | $ | 15,113 | $ | 14,138 | $ | 11,509 | 6.9 | % | 31.3 | % | |||
Interest on securities | 2,238 | 2,037 | 2,227 | 9.9 | % | 0.5 | % | ||||||
Dividends | 312 | 155 | 1,673 | 101.3 | % | (81.4 | )% | ||||||
Other | 22 | 26 | 9 | (15.4 | )% | 144.4 | % | ||||||
Total interest and dividend income | 17,685 | 16,356 | 15,418 | 8.1 | % | 14.7 | % | ||||||
Interest on deposits | 2,732 | 2,484 | 1,926 | 10.0 | % | 41.8 | % | ||||||
Interest on borrowings | 458 | 556 | 287 | (17.6 | )% | 59.6 | % | ||||||
Total interest expense | 3,190 | 3,040 | 2,213 | 4.9 | % | 44.1 | % | ||||||
Net interest and dividend income | 14,495 | 13,316 | 13,205 | 8.9 | % | 9.8 | % | ||||||
Provision for loan losses | 2,872 | 1,113 | 1,318 | 158.0 | % | 117.9 | % | ||||||
Net interest and dividend income, after provision for loan losses | 11,623 | 12,203 | 11,887 | (4.8 | )% | (2.2 | )% | ||||||
Deposit account fees | 347 | 307 | 319 | 13.0 | % | 8.8 | % | ||||||
Interchange and ATM fees | 418 | 393 | 430 | 6.4 | % | (2.8 | )% | ||||||
Mortgage banking | 1,262 | 531 | 52 | 137.7 | % | 2,326.9 | % | ||||||
Loan level derivative fee income | 770 | 322 | 513 | 139.1 | % | 50.1 | % | ||||||
Realized securities gains, net | 562 | 664 | 238 | (15.4 | )% | 136.1 | % | ||||||
Bank-owned life insurance income | 262 | 257 | 258 | 1.9 | % | 1.6 | % | ||||||
Bank-owned life insurance death benefit gains | 297 | 209 | — | 42.1 | % | NM | |||||||
Miscellaneous | 214 | 128 | (116 | ) | 67.2 | % | (284.5 | )% | |||||
Total noninterest income | 4,132 | 2,811 | 1,694 | 47.0 | % | 143.9 | % | ||||||
Salaries and employee benefits | 7,596 | 7,138 | 5,591 | 6.4 | % | 35.9 | % | ||||||
Occupancy and equipment | 1,807 | 1,653 | 1,617 | 9.3 | % | 11.8 | % | ||||||
Data processing | 908 | 803 | 939 | 13.1 | % | (3.3 | )% | ||||||
Professional fees | 743 | 678 | 610 | 9.6 | % | 21.8 | % | ||||||
Advertising | 495 | 719 | 620 | (31.2 | )% | (20.2 | )% | ||||||
FDIC deposit insurance | 270 | 352 | 262 | (23.3 | )% | 3.1 | % | ||||||
Directors' fees | 344 | 399 | 112 | (13.8 | )% | 207.1 | % | ||||||
Amortization of core deposit intangible | 294 | 318 | 390 | (7.5 | )% | (24.6 | )% | ||||||
Other general and administrative | 777 | 875 | 707 | (11.2 | )% | 9.9 | % | ||||||
Total noninterest expense | 13,234 | 12,935 | 10,848 | 2.3 | % | 22.0 | % | ||||||
Income before income taxes | 2,521 | 2,079 | 2,733 | 21.3 | % | (7.8 | )% | ||||||
Provision for income taxes | 891 | 721 | 923 | 23.6 | % | (3.5 | )% | ||||||
Net income | $ | 1,630 | $ | 1,358 | $ | 1,810 | 20.0 | % | (9.9 | )% | |||
Earnings per common share: | |||||||||||||
Basic | $ | 0.07 | $ | 0.06 | $ | 0.07 | |||||||
Diluted | $ | 0.07 | $ | 0.05 | $ | 0.07 | |||||||
Weighted average shares outstanding: | |||||||||||||
Basic | 24,129,512 | 24,575,211 | 26,183,381 | ||||||||||
Diluted | 24,307,540 | 24,699,794 | 26,183,381 | ||||||||||
8
Blue Hills Bancorp, Inc.
Consolidated Statements of Net Income-Year to Date
(Unaudited, dollars in thousands, except share data) | Year to Date | |||||||
September 30, 2016 | September 30, 2015 | % Change | ||||||
Interest and fees on loans | $ | 42,854 | $ | 32,695 | 31.1 | % | ||
Interest on securities | 6,570 | 6,600 | (0.5 | )% | ||||
Dividends | 606 | 1,885 | (67.9 | )% | ||||
Other | 74 | 50 | 48.0 | % | ||||
Total interest and dividend income | 50,104 | 41,230 | 21.5 | % | ||||
Interest on deposits | 7,508 | 5,434 | 38.2 | % | ||||
Interest on borrowings | 1,584 | 811 | 95.3 | % | ||||
Total interest expense | 9,092 | 6,245 | 45.6 | % | ||||
Net interest and dividend income | 41,012 | 34,985 | 17.2 | % | ||||
Provision for loan losses | 3,958 | 2,141 | 84.9 | % | ||||
Net interest and dividend income, after provision for loan losses | 37,054 | 32,844 | 12.8 | % | ||||
Deposit account fees | 971 | 987 | (1.6 | )% | ||||
Interchange and ATM fees | 1,158 | 1,133 | 2.2 | % | ||||
Mortgage banking | 2,037 | 236 | 763.1 | % | ||||
Loan level derivative fee income | 1,731 | 1,287 | 34.5 | % | ||||
Realized securities gains, net | 982 | 1,823 | (46.1 | )% | ||||
Bank-owned life insurance income | 776 | 763 | 1.7 | % | ||||
Bank-owned life insurance death benefit gains | 506 | — | NM | |||||
Miscellaneous | 159 | 126 | 26.2 | % | ||||
Total noninterest income | 8,320 | 6,355 | 30.9 | % | ||||
Salaries and employee benefits | 21,619 | 16,721 | 29.3 | % | ||||
Occupancy and equipment | 5,079 | 4,579 | 10.9 | % | ||||
Data processing | 2,472 | 2,601 | (5.0 | )% | ||||
Professional fees | 1,902 | 1,909 | (0.4 | )% | ||||
Advertising | 1,746 | 1,682 | 3.8 | % | ||||
FDIC deposit insurance | 968 | 807 | 20.0 | % | ||||
Directors' fees | 1,081 | 329 | 228.6 | % | ||||
Amortization of core deposit intangible | 954 | 1,241 | (23.1 | )% | ||||
Other general and administrative | 2,416 | 2,265 | 6.7 | % | ||||
Total noninterest expense | 38,237 | 32,134 | 19.0 | % | ||||
Income before income taxes | 7,137 | 7,065 | 1.0 | % | ||||
Provision for income taxes | 2,482 | 2,250 | 10.3 | % | ||||
Net income | $ | 4,655 | $ | 4,815 | (3.3 | )% | ||
Earnings per common share: | ||||||||
Basic | $ | 0.19 | $ | 0.18 | ||||
Diluted | $ | 0.19 | $ | 0.18 | ||||
Weighted average shares outstanding: | ||||||||
Basic | 24,585,570 | 26,250,065 | ||||||
Diluted | 24,708,559 | 26,250,065 | ||||||
9
Blue Hills Bancorp Inc. | |||||||||||||||
Consolidated Statements of Net Income - Trend | |||||||||||||||
Quarters Ended | |||||||||||||||
(Unaudited, dollars in thousands, except share data) | September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||
2016 | 2016 | 2016 | 2015 | 2015 | |||||||||||
Interest and fees on loans | $ | 15,113 | $ | 14,138 | $ | 13,603 | $ | 12,647 | $ | 11,509 | |||||
Interest on securities | 2,238 | 2,037 | 2,295 | 2,228 | 2,227 | ||||||||||
Dividends | 312 | 155 | 139 | 2,183 | 1,673 | ||||||||||
Other | 22 | 26 | 26 | 13 | 9 | ||||||||||
Total interest and dividend income | 17,685 | 16,356 | 16,063 | 17,071 | 15,418 | ||||||||||
Interest on deposits | 2,732 | 2,484 | 2,292 | 2,093 | 1,926 | ||||||||||
Interest on borrowings | 458 | 556 | 570 | 406 | 287 | ||||||||||
Total interest expense | 3,190 | 3,040 | 2,862 | 2,499 | 2,213 | ||||||||||
Net interest and dividend income | 14,495 | 13,316 | 13,201 | 14,572 | 13,205 | ||||||||||
Provision (credit) for loan losses | 2,872 | 1,113 | (27 | ) | 1,949 | 1,318 | |||||||||
Net interest and dividend income, after provision (credit) for loan losses | 11,623 | 12,203 | 13,228 | 12,623 | 11,887 | ||||||||||
Deposit account fees | 347 | 307 | 317 | 327 | 319 | ||||||||||
Interchange and ATM fees | 418 | 393 | 347 | 378 | 430 | ||||||||||
Mortgage banking | 1,262 | 531 | 244 | 46 | 52 | ||||||||||
Loan level derivative fee income | 770 | 322 | 639 | 833 | 513 | ||||||||||
Realized securities gains (losses), net | 562 | 664 | (244 | ) | 145 | 238 | |||||||||
Bank-owned life insurance income | 262 | 257 | 257 | 268 | 258 | ||||||||||
Bank-owned life insurance death benefit gains | 297 | 209 | — | — | — | ||||||||||
Miscellaneous | 214 | 128 | (183 | ) | 327 | (116 | ) | ||||||||
Total noninterest income | 4,132 | 2,811 | 1,377 | 2,324 | 1,694 | ||||||||||
Salaries and employee benefits | 7,596 | 7,138 | 6,885 | 5,849 | 5,591 | ||||||||||
Occupancy and equipment | 1,807 | 1,653 | 1,619 | 1,688 | 1,617 | ||||||||||
Data processing | 908 | 803 | 761 | 909 | 939 | ||||||||||
Professional fees | 743 | 678 | 481 | 780 | 610 | ||||||||||
Advertising | 495 | 719 | 532 | 776 | 620 | ||||||||||
FDIC deposit insurance | 270 | 352 | 346 | 192 | 262 | ||||||||||
Directors' fees | 344 | 399 | 338 | 315 | 112 | ||||||||||
Amortization of core deposit intangible | 294 | 318 | 342 | 366 | 390 | ||||||||||
Other general and administrative | 777 | 875 | 764 | 1,073 | 707 | ||||||||||
Total noninterest expense | 13,234 | 12,935 | 12,068 | 11,948 | 10,848 | ||||||||||
Income before income taxes | 2,521 | 2,079 | 2,537 | 2,999 | 2,733 | ||||||||||
Provision for income taxes | 891 | 721 | 870 | 587 | 923 | ||||||||||
Net income | $ | 1,630 | $ | 1,358 | $ | 1,667 | $ | 2,412 | $ | 1,810 | |||||
Earnings per common share: | |||||||||||||||
Basic | $ | 0.07 | $ | 0.06 | $ | 0.07 | $ | 0.09 | $ | 0.07 | |||||
Diluted | $ | 0.07 | $ | 0.05 | $ | 0.07 | $ | 0.09 | $ | 0.07 | |||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 24,129,512 | 24,575,211 | 25,066,086 | 25,500,755 | 26,183,381 | ||||||||||
Diluted | 24,307,540 | 24,699,794 | 25,132,441 | 25,554,961 | 26,183,381 | ||||||||||
10
Blue Hills Bancorp Inc. | ||||||||||||||||||||||||||
Average Balances/Yields | ||||||||||||||||||||||||||
(Unaudited, dollars in thousands) | Quarters Ended | |||||||||||||||||||||||||
September 30, 2016 | June 30, 2016 | September 30, 2015 | ||||||||||||||||||||||||
Average balance | Interest | Yield/Cost | Average balance | Interest | Yield/Cost | Average balance | Interest | Yield/Cost | ||||||||||||||||||
Interest-earning assets | ||||||||||||||||||||||||||
Total loans (1) | $ | 1,726,088 | $ | 15,166 | 3.50 | % | $ | 1,635,256 | $ | 14,191 | 3.49 | % | $ | 1,316,514 | $ | 11,562 | 3.48 | % | ||||||||
Securities (1) | 403,038 | 2,414 | 2.38 | 419,685 | 2,080 | 1.99 | 429,667 | 3,838 | 3.54 | |||||||||||||||||
Other interest earning assets and FHLB stock | 31,236 | 170 | 2.17 | 36,584 | 162 | 1.78 | 34,061 | 106 | 1.23 | |||||||||||||||||
Total interest-earning assets | 2,160,362 | 17,750 | 3.27 | % | 2,091,525 | 16,433 | 3.16 | % | 1,780,242 | 15,506 | 3.46 | % | ||||||||||||||
Non-interest-earning assets | 106,589 | 100,104 | 89,085 | |||||||||||||||||||||||
Total assets | $ | 2,266,951 | $ | 2,191,629 | $ | 1,869,327 | ||||||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||||||||||
NOW | $ | 140,273 | $ | 17 | 0.05 | % | $ | 139,100 | $ | 16 | 0.05 | % | $ | 128,298 | $ | 15 | 0.05 | % | ||||||||
Regular savings | 272,950 | 229 | 0.33 | 276,451 | 233 | 0.34 | 289,236 | 269 | 0.37 | |||||||||||||||||
Money market | 560,098 | 1,173 | 0.83 | 479,564 | 983 | 0.82 | 348,658 | 606 | 0.69 | |||||||||||||||||
Certificates of deposit | 471,040 | 1,313 | 1.11 | 458,328 | 1,252 | 1.10 | 392,170 | 1,036 | 1.05 | |||||||||||||||||
Total interest-bearing deposits | 1,444,361 | 2,732 | 0.75 | 1,353,443 | 2,484 | 0.74 | 1,158,362 | 1,926 | 0.66 | |||||||||||||||||
Borrowings | 224,660 | 458 | 0.81 | 271,242 | 556 | 0.82 | 135,554 | 287 | 0.84 | |||||||||||||||||
Total interest-bearing liabilities | 1,669,021 | 3,190 | 0.76 | % | 1,624,685 | 3,040 | 0.75 | % | 1,293,916 | 2,213 | 0.68 | % | ||||||||||||||
Non-interest-bearing deposits | 171,317 | 145,171 | 142,328 | |||||||||||||||||||||||
Other non-interest-bearing liabilities | 33,936 | 27,513 | 20,368 | |||||||||||||||||||||||
Total liabilities | 1,874,274 | 1,797,369 | 1,456,612 | |||||||||||||||||||||||
Stockholders' equity | 392,677 | 394,260 | 412,715 | |||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 2,266,951 | $ | 2,191,629 | $ | 1,869,327 | ||||||||||||||||||||
Net interest and dividend income (FTE) | 14,560 | 13,393 | 13,293 | |||||||||||||||||||||||
Less: FTE adjustment | (65 | ) | (77 | ) | (88 | ) | ||||||||||||||||||||
Net interest and dividend income (GAAP) | $ | 14,495 | $ | 13,316 | $ | 13,205 | ||||||||||||||||||||
Net interest rate spread (FTE) | 2.51 | % | 2.41 | % | 2.78 | % | ||||||||||||||||||||
Net interest margin (FTE) | 2.68 | % | 2.58 | % | 2.96 | % | ||||||||||||||||||||
Total deposit cost | 0.67 | % | 0.67 | % | 0.59 | % | ||||||||||||||||||||
(1) Interest income on tax-exempt securities and loans was adjusted to a fully taxable-equivalent (FTE) basis using a federal statutory tax rate of 34%.
11
Blue Hills Bancorp Inc. | |||||||||||||||||
Average Balances/Yields | |||||||||||||||||
(Unaudited, dollars in thousands) | Year to Date | ||||||||||||||||
September 30, 2016 | September 30, 2015 | ||||||||||||||||
Average balance | Interest | Yield/Cost | Average balance | Interest | Yield/Cost | ||||||||||||
Interest-earning assets | |||||||||||||||||
Total loans (1) | $ | 1,643,829 | $ | 43,013 | 3.50 | % | $ | 1,240,142 | $ | 32,844 | 3.54 | % | |||||
Securities (1) | 417,526 | 6,862 | 2.20 | 427,064 | 8,391 | 2.63 | |||||||||||
Other interest earning assets and FHLB stock | 34,835 | 458 | 1.76 | 42,438 | 249 | 0.78 | |||||||||||
Total interest-earning assets | 2,096,190 | 50,333 | 3.21 | % | 1,709,644 | 41,484 | 3.24 | % | |||||||||
Non-interest-earning assets | 102,425 | 92,937 | |||||||||||||||
Total assets | $ | 2,198,615 | $ | 1,802,581 | |||||||||||||
Interest-bearing liabilities | |||||||||||||||||
NOW | $ | 138,254 | $ | 49 | 0.05 | % | $ | 124,832 | $ | 43 | 0.05 | % | |||||
Regular savings | 278,624 | 713 | 0.34 | 296,364 | 880 | 0.40 | |||||||||||
Money market | 490,472 | 3,002 | 0.82 | 314,828 | 1,585 | 0.67 | |||||||||||
Certificates of deposit | 455,039 | 3,744 | 1.10 | 372,408 | 2,926 | 1.05 | |||||||||||
Total interest-bearing deposits | 1,362,389 | 7,508 | 0.74 | 1,108,432 | 5,434 | 0.66 | |||||||||||
Borrowings | 257,798 | 1,584 | 0.82 | 126,256 | 811 | 0.86 | |||||||||||
Total interest-bearing liabilities | 1,620,187 | 9,092 | 0.75 | % | 1,234,688 | 6,245 | 0.68 | % | |||||||||
Non-interest-bearing deposits | 154,877 | 132,900 | |||||||||||||||
Other non-interest-bearing liabilities | 29,324 | 20,694 | |||||||||||||||
Total liabilities | 1,804,388 | 1,388,282 | |||||||||||||||
Stockholders' equity | 394,227 | 414,299 | |||||||||||||||
Total liabilities and stockholders' equity | $ | 2,198,615 | $ | 1,802,581 | |||||||||||||
Net interest and dividend income (FTE) | 41,241 | 35,239 | |||||||||||||||
Less: FTE adjustment | (229 | ) | (254 | ) | |||||||||||||
Net interest and dividend income (GAAP) | $ | 41,012 | $ | 34,985 | |||||||||||||
Net interest rate spread (FTE) | 2.46 | % | 2.56 | % | |||||||||||||
Net interest margin (FTE) | 2.63 | % | 2.76 | % | |||||||||||||
Total deposit cost | 0.66 | % | 0.59 | % | |||||||||||||
(1) Interest income on tax-exempt securities and loans was adjusted to a fully taxable-equivalent (FTE) basis using a federal statutory tax rate of 34%.
12
Blue Hills Bancorp, Inc. | |||||||||||||||
Average Balances - Trend | |||||||||||||||
(Unaudited, dollars in thousands) | Quarters Ended | ||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||
2016 | 2016 | 2016 | 2015 | 2015 | |||||||||||
Interest-earning assets | |||||||||||||||
Total loans | $ | 1,726,088 | $ | 1,635,256 | $ | 1,569,240 | $ | 1,449,494 | $ | 1,316,514 | |||||
Securities | 403,038 | 419,685 | 430,015 | 427,752 | 429,667 | ||||||||||
Other interest earning assets and FHLB stock | 31,236 | 36,584 | 36,723 | 33,222 | 34,061 | ||||||||||
Total interest-earning assets | 2,160,362 | 2,091,525 | 2,035,978 | 1,910,468 | 1,780,242 | ||||||||||
Non-interest-earning assets | 106,589 | 100,104 | 100,534 | 91,732 | 89,085 | ||||||||||
Total assets | $ | 2,266,951 | $ | 2,191,629 | $ | 2,136,512 | $ | 2,002,200 | $ | 1,869,327 | |||||
Interest-bearing liabilities | |||||||||||||||
NOW | $ | 140,273 | $ | 139,100 | $ | 135,367 | $ | 134,162 | $ | 128,298 | |||||
Regular savings | 272,950 | 276,451 | 286,533 | 287,003 | 289,236 | ||||||||||
Money market | 560,098 | 479,564 | 430,989 | 397,998 | 348,658 | ||||||||||
Certificates of deposit | 471,040 | 458,328 | 435,574 | 396,552 | 392,170 | ||||||||||
Total interest-bearing deposits | 1,444,361 | 1,353,443 | 1,288,463 | 1,215,715 | 1,158,362 | ||||||||||
Borrowings | 224,660 | 271,242 | 277,857 | 207,446 | 135,554 | ||||||||||
Total interest-bearing liabilities | 1,669,021 | 1,624,685 | 1,566,320 | 1,423,161 | 1,293,916 | ||||||||||
Non-interest-bearing deposits | 171,317 | 145,171 | 147,961 | 154,872 | 142,328 | ||||||||||
Other non-interest-bearing liabilities | 33,936 | 27,513 | 26,471 | 21,878 | 20,368 | ||||||||||
Total liabilities | 1,874,274 | 1,797,369 | 1,740,752 | 1,599,911 | 1,456,612 | ||||||||||
Stockholders' equity | 392,677 | 394,260 | 395,760 | 402,289 | 412,715 | ||||||||||
Total liabilities and stockholders' equity | $ | 2,266,951 | $ | 2,191,629 | $ | 2,136,512 | $ | 2,002,200 | $ | 1,869,327 | |||||
13
Blue Hills Bancorp, Inc. | |||||
Yield Trend | |||||
(Unaudited, dollars in thousands) | Quarters Ended | ||||
September 30, | June 30, | March 31, | December 31, | September 30, | |
2016 | 2016 | 2016 | 2015 | 2015 | |
Interest-earning assets | |||||
Total loans (1) | 3.50% | 3.49% | 3.50% | 3.48% | 3.48% |
Securities (1) | 2.38% | 1.99% | 2.21% | 4.03% | 3.54% |
Other interest earning assets and FHLB stock | 2.17% | 1.78% | 1.38% | 1.33% | 1.23% |
Total interest-earning assets | 3.27% | 3.16% | 3.19% | 3.56% | 3.46% |
Interest-bearing liabilities | |||||
NOW | 0.05% | 0.05% | 0.05% | 0.06% | 0.05% |
Regular savings | 0.33% | 0.34% | 0.35% | 0.36% | 0.37% |
Money market | 0.83% | 0.82% | 0.79% | 0.73% | 0.69% |
Certificates of deposit | 1.11% | 1.10% | 1.09% | 1.08% | 1.05% |
Total interest-bearing deposits | 0.75% | 0.74% | 0.72% | 0.68% | 0.66% |
Borrowings | 0.81% | 0.82% | 0.83% | 0.78% | 0.84% |
Total interest-bearing liabilities | 0.76% | 0.75% | 0.73% | 0.70% | 0.68% |
Net interest rate spread (FTE) | 2.51% | 2.41% | 2.46% | 2.86% | 2.78% |
Net interest margin (FTE) | 2.68% | 2.58% | 2.62% | 3.04% | 2.96% |
Total deposit cost | 0.67% | 0.67% | 0.64% | 0.61% | 0.59% |
(1) Interest income on tax-exempt securities and loans was adjusted to a fully taxable-equivalent (FTE) basis using a federal statutory tax rate of 34%.
Blue Hills Bancorp, Inc. | |||||||||||||||
Selected Financial Highlights | |||||||||||||||
(Unaudited, dollars in thousands, except share data) | Quarters Ended | ||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||
2016 | 2016 | 2016 | 2015 | 2015 | |||||||||||
Performance Ratios (annualized) | |||||||||||||||
Basic EPS | $ | 0.07 | $ | 0.06 | $ | 0.07 | $ | 0.09 | $ | 0.07 | |||||
Diluted EPS | $ | 0.07 | $ | 0.05 | $ | 0.07 | $ | 0.09 | $ | 0.07 | |||||
Return on average assets (ROAA) | 0.29 | % | 0.25 | % | 0.31 | % | 0.48 | % | 0.38 | % | |||||
Return on average equity (ROAE) | 1.65 | % | 1.39 | % | 1.69 | % | 2.38 | % | 1.74 | % | |||||
Return on average tangible common equity (ROATCE) (1) (2) | 1.70 | % | 1.43 | % | 1.75 | % | 2.45 | % | 1.79 | % | |||||
Efficiency Ratio | 71 | % | 72 | % | 83 | % | 70 | % | 73 | % | |||||
(1) Average tangible common equity equals average total equity less goodwill and intangibles.
(2) ROATCE, average tangible common equity, tangible common equity, and tangible assets are non-GAAP measures and may not be comparable to similar non-GAAP measures used by other companies. Management believes that these non-GAAP measures are meaningful because it is standard practice for companies in the banking industry to disclose these measures. Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons.
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Blue Hills Bancorp, Inc. | ||||||
Selected Financial Highlights | ||||||
(Unaudited, dollars in thousands, except share data) | Year to Date | |||||
September 30, 2016 | September 30, 2015 | |||||
Performance Ratios (annualized) | ||||||
Basic and diluted EPS | $ | 0.19 | $ | 0.18 | ||
Return on average assets (ROAA) | 0.28 | % | 0.36 | % | ||
Return on average equity (ROAE) | 1.58 | % | 1.55 | % | ||
Return on average tangible common equity (ROATCE) (1) (2) | 1.62 | % | 1.60 | % | ||
Efficiency Ratio | 78 | % | 78 | % | ||
(1) Average tangible common equity equals average total equity less average goodwill and intangibles.
(2) ROATCE, average tangible common equity, tangible common equity, and tangible assets are non-GAAP measures and may not be comparable to similar non-GAAP measures used by other companies. Management believes that these non-GAAP measures are meaningful because it is standard practice for companies in the banking industry to disclose these measures. Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons.
Blue Hills Bancorp, Inc. | ||||||||||||||||
Selected Financial Highlights | ||||||||||||||||
(Unaudited, dollars in thousands, except share data) | At or for the Quarters Ended | At or for the Nine Months Ended | ||||||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||
2016 | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Asset Quality | ||||||||||||||||
Nonperforming Assets | $ | 7,849 | $ | 14,983 | $ | 4,999 | $ | 7,849 | $ | 4,999 | ||||||
Nonperforming Assets/Total Assets | 0.34 | % | 0.67 | % | 0.26 | % | 0.34 | % | 0.26 | % | ||||||
Allowance for Loan Losses/Total Loans | 1.01 | % | 1.07 | % | 1.10 | % | 1.01 | % | 1.10 | % | ||||||
Net Charge-offs | $ | 3,221 | $ | 19 | $ | 13 | $ | 3,330 | $ | 32 | ||||||
Annualized Net Charge-offs/Average Loans | 0.74 | % | — | % | — | % | 0.41 | % | — | % | ||||||
Allowance for Loan Losses/ Nonperforming Loans | 226 | % | 121 | % | 302 | % | 226 | % | 302 | % | ||||||
Capital/Other | ||||||||||||||||
Common shares outstanding | 26,966,942 | 27,397,842 | 28,150,313 | |||||||||||||
Book value per share | $ | 14.45 | $ | 14.31 | $ | 14.48 | ||||||||||
Tangible book value per share | $ | 14.05 | $ | 13.90 | $ | 14.05 | ||||||||||
Tangible Common Equity/Tangible Assets (2) (3) | 16.45 | % | 17.08 | % | 20.57 | % | ||||||||||
Full-time Equivalent Employees | 223 | 231 | 204 | |||||||||||||
(2) ROATCE, average tangible common equity, tangible common equity, and tangible assets are non-GAAP measures and may not be comparable to similar non-GAAP measures used by other companies. Management believes that these non-GAAP measures are meaningful because it is standard practice for companies in the banking industry to disclose these measures. Therefore, management believes these measures provide useful information to investors by allowing them to make peer comparisons.
(3) Tangible common equity equals total equity less goodwill and intangibles, Tangible assets equals total assets less goodwill and intangibles.
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