Net Income of $14.9 million, EPS of $0.20

BOSTON, July 19, 2017 (GLOBE NEWSWIRE) -- Brookline Bancorp, Inc. (NASDAQ:BRKL) (the “Company”) today announced net income of $14.9 million, or $0.20 per basic and diluted share, for the second quarter of 2017, compared to $13.4 million, or $0.19 per basic and diluted share, for the first quarter of 2017, and $12.7 million, or $0.18 per basic and diluted share, for the second quarter of 2016.

“We are pleased to report record quarterly earnings of $14.9 million or $0.20 per share for the second quarter of 2017,” said Paul Perrault, President and Chief Executive Officer of the Company. “During the quarter, we generated steady growth in loans and deposits with a stable net interest margin. We look forward to continued success in the second half of 2017.”

BALANCE SHEET

Total assets at June 30, 2017 increased $160.3 million to $6.66 billion from $6.50 billion at March 31, 2017, and increased $361.6 million from $6.30 billion at June 30, 2016. At June 30, 2017, total loans and leases were $5.54 billion, representing an increase of $75.6 million from March 31, 2017, and an increase of $278.4 million from June 30, 2016. During the second quarter of 2017, total loans and leases increased 5.5 percent on an annualized basis.

Investment securities at June 30, 2017 increased $20.8 million to $649.9 million, comprising 9.8 percent of total assets, as compared to $629.1 million, or 9.7 percent of total assets, at March 31, 2017, and increased approximately $47.4 million from $602.6 million, or 9.6 percent of total assets, at June 30, 2016.

Total deposits at June 30, 2017 increased $57.5 million to $4.71 billion from $4.65 billion at March 31, 2017 and increased $224.3 million from $4.49 billion at June 30, 2016. Core deposits, which consists of demand checking, NOW, savings, and money market accounts, increased $28.6 million from March 31, 2017 and increased $255.7 million from June 30, 2016.

Total borrowings at June 30, 2017 increased $9.9 million to $1.07 billion from $1.06 billion at March 31, 2017 and increased $38.2 million from $1.03 billion at June 30, 2016.

On May 2, 2017 we issued 5,951,250 shares of common stock with net proceeds to the Company of approximately $82 million.

The ratio of stockholders’ equity to total assets was 11.95 percent at June 30, 2017, as compared to 10.83 percent at March 31, 2017, and 10.95 percent at June 30, 2016, respectively. The ratio of tangible stockholders’ equity to tangible assets was 9.99 percent at June 30, 2017, as compared to 8.79 percent at March 31, 2017, and 8.82 percent at June 30, 2016. Tangible book value per share increased $0.59 from $7.93 at March 31, 2017 to $8.52 at June 30, 2017.

NET INTEREST INCOME

Net interest income increased $2.5 million to $55.6 million during the second quarter of 2017 from the quarter ended March 31, 2017. The net interest margin increased 6 basis points to 3.59 percent for the three months ended June 30, 2017.

NON-INTEREST INCOME

Non-interest income for the quarter ended June 30, 2017 decreased $11.4 million to $4.5 million from $15.9 million for the quarter ended March 31, 2017, primarily due to the recognition of the gain of $11.4 million on the NRS investment in the prior quarter.

PROVISION FOR CREDIT LOSSES

The Company recorded a provision for credit losses of $0.9 million for the quarter ended June 30, 2017, compared to $13.4 million for the quarter ended March 31, 2017. The decrease in the provision for the quarter was primarily driven by a decrease of $12.3 million in specific and taxi medallion related reserves.

Net charge-offs for the second quarter of 2017 were $2.4 million compared to $1.0 million in the first quarter of 2017. The ratio of net charge-offs to average loans and leases on an annualized basis increased to 17 basis points for the second quarter of 2017 from 7 basis points for the first quarter of 2017. The increase in net charge offs was due primarily to two commercial relationships.

The allowance for loan and lease losses represented 1.17 percent of total loans and leases at June 30, 2017, compared to 1.21 percent at March 31, 2017, and 1.09 percent at June 30, 2016. The allowance for loan and lease losses related to originated loans and leases represented 1.20 percent of originated loans and leases at June 30, 2017, compared to 1.25 percent at March 31, 2017, and 1.13 percent at June 30, 2016. The decrease to the allowance for loan and lease losses coverage ratio was primarily driven by the charge off of the specific reserve on two commercial relationships during the second quarter of 2017.

NON-INTEREST EXPENSE

Non-interest expense for the quarter ended June 30, 2017 increased $1.0 million to $34.8 million from $33.8 million for the quarter ended March 31, 2017. The increase was primarily driven by an increase of $1.1 million in compensation and employee benefits, an increase of $0.1 million in equipment and data processing, offset by a decrease of $0.3 million in other non-interest expense. The efficiency ratio for the second quarter was 57.93% compared to 48.92% for the first quarter of 2017 and 57.97% for the second quarter of 2016. The efficiency ratio for the first quarter of 2017 was lower due to the gain on the NRS investment in that quarter.

PROVISION FOR INCOME TAXES

The effective tax rate was 35.9 percent for the three months and six months ended June 30, 2017.

RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

The return on average assets of 0.91 percent increased during the second quarter of 2017 from 0.83 percent at March 31, 2017. The return on average tangible assets increased to 0.93 percent for the second quarter of 2017 from 0.85 percent for the first quarter of 2017.

The return on average stockholders' equity increased during the second quarter of 2017 to 7.76 percent from 7.58 percent for the first quarter of 2017. The return on average tangible stockholders’ equity increased to 9.58 percent for the second quarter of 2017 from 9.55 percent for the first quarter of 2017.

ASSET QUALITY

The ratio of nonperforming loans and leases to total loans and leases was 0.76 percent at June 30, 2017 as compared to 0.83 percent at March 31, 2017. Nonperforming loans and leases decreased $2.8 million to $42.3 million at June 30, 2017 from $45.1 million at March 31, 2017. Nonperforming assets at June 30, 2017 decreased $0.2 million to $47.1 million, or 0.71 percent of total assets, from $47.3 million, or 0.73 percent of total assets, at March 31, 2017.

DIVIDEND DECLARED

The Company’s Board of Directors approved a dividend of $0.09 per share for the quarter ended June 30, 2017. The dividend will be paid on August 25, 2017 to stockholders of record on August 11, 2017.

CONFERENCE CALL

The Company will conduct a conference call/webcast at 1:30 PM Eastern Daylight Time on Thursday, July 20, 2017 to discuss the results for the quarter, business highlights and outlook. The call can be accessed by dialing 877-504-4120 (United States) or 412-902-6650 (internationally). A recorded playback of the call will be available for one week following the call at 877-344-7529 (United States) or 412-317-0088 (internationally). The passcode for the playback is 10110050. The call will be available live and in a recorded version on the Company’s website under “Investor Relations” at www.brooklinebancorp.com.

ABOUT BROOKLINE BANCORP, INC.

Brookline Bancorp, Inc., a bank holding company with $6.7 billion in assets and branch locations in Massachusetts and Rhode Island, is headquartered in Boston, Massachusetts and operates as the holding company for Brookline Bank, Bank Rhode Island, and First Ipswich Bank (the "banks"). The Company provides commercial and retail banking services, cash management and investment services to customers throughout Central New England. More information about Brookline Bancorp, Inc. and its banks can be found at the following websites: www.brooklinebank.com, www.bankri.com, and www.firstipswich.com.

FORWARD-LOOKING STATEMENTS

Certain statements contained in this press release that are not historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties. The Company’s actual results could differ materially from those projected in the forward-looking statements as a result of, among others, the risks outlined in the Company’s Annual Report on Form 10-K, as updated by its Quarterly Reports on Form 10-Q and other filings submitted to the Securities and Exchange Commission ("SEC"). The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.

BASIS OF PRESENTATION

The Company's consolidated financial statements have been prepared in conformity with generally accepted accounting principles (“GAAP”) as set forth by the Financial Accounting Standards Board in its Accounting Standards Codification and through the rules and interpretive releases of the SEC under the authority of federal securities laws. Certain amounts previously reported have been reclassified to conform to the current period's presentation.

NON-GAAP FINANCIAL MEASURES

The Company uses certain non-GAAP financial measures, such as the allowance for loan and lease losses related to originated loans and leases as a percentage of originated loans and leases, tangible book value per common share, tangible stockholders’ equity to tangible assets, return on average tangible assets and return on average tangible stockholders' equity. These non-GAAP financial measures provide information for investors to effectively analyze financial trends of ongoing business activities, and to enhance comparability with peers across the financial services sector. A detailed reconciliation table of the Company's GAAP to the non-GAAP measures is attached.

Contact:
Carl M. Carlson
Brookline Bancorp, Inc.
Chief Financial Officer
(617) 425-5331
ccarlson@brkl.com

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Selected Financial Highlights (Unaudited)
	At and for the Three Months Ended
	June 30, 2017				March 31, 2017				December 31, 2016				September 30, 2016				June 30, 2016
	(Dollars In Thousands Except per Share Data)
Earnings Data:
Net interest income	$	55,583			$	53,098			$	51,854			$	52,350			$	50,257
Provision for credit losses		873				13,402				3,215				2,215				2,545
Non-interest income		4,477				15,908				5,430				5,329				5,375
Non-interest expense		34,795				33,756				32,607				33,388				32,250
Income before provision for income taxes		24,392				21,848				21,462				22,076				20,837
Net income attributable to Brookline Bancorp, Inc.		14,880				13,445				13,279				13,617				12,654
Performance Ratios:
Net interest margin (1)		3.59	%			3.53	%			3.40	%			3.48	%			3.44	%
Interest-rate spread (1)		3.39	%			3.29	%			3.24	%			3.32	%			3.25	%
Return on average assets (annualized)		0.91	%			0.83	%			0.83	%			0.86	%			0.81	%
Return on average tangible assets (annualized) (non-GAAP)		0.93	%			0.85	%			0.85	%			0.88	%			0.83	%
Return on average stockholders' equity (annualized)		7.76	%			7.58	%			7.59	%			7.83	%			7.38	%
Return on average tangible stockholders' equity (annualized) (non-GAAP)		9.58	%			9.55	%			9.60	%			9.94	%			9.40	%
Efficiency ratio (2)		57.93	%			48.92	%			56.92	%			57.89	%			57.97	%
Per Common Share Data:
Net income — Basic	$	0.20			$	0.19			$	0.19			$	0.19			$	0.18
Net income — Diluted		0.20				0.19				0.19				0.19				0.18
Cash dividends declared		0.09				0.09				0.09				0.09				0.09
Book value per share (end of period)		10.42				10.00				9.88				9.90				9.82
Tangible book value per share (end of period) (non-GAAP)		8.52				7.93				7.81				7.81				7.73
Stock price (end of period)		14.60				15.65				16.40				12.19				11.03
Balance Sheet:
Total assets	$	6,658,067			$	6,497,721			$	6,438,129			$	6,380,312			$	6,296,502
Total loans and leases		5,537,406				5,461,779				5,398,864				5,332,300				5,259,038
Total deposits		4,709,419				4,651,903				4,611,076				4,564,906				4,485,154
Brookline Bancorp, Inc. stockholders’ equity		795,618				703,873				695,544				696,371				689,656
Asset Quality:
Nonperforming assets	$	47,140			$	47,349			$	41,476			$	38,704			$	33,809
Nonperforming assets as a percentage of total assets		0.71	%			0.73	%			0.64	%			0.61	%			0.54	%
Allowance for loan and lease losses	$	64,521			$	66,133			$	53,666			$	58,892			$	57,258
Allowance for loan and lease losses as a percentage of total loans and leases		1.17	%			1.21	%			0.99	%			1.10	%			1.09	%
Net loan and lease charge-offs	$	2,402			$	995			$	8,337			$	520			$	4,018
Net loan and lease charge-offs as a percentage of average loans and leases (annualized)		0.17	%			0.07	%			0.62	%			0.04	%			0.31	%
Capital Ratios:
Stockholders’ equity to total assets		11.95	%			10.83	%			10.80	%			10.91	%			10.95	%
Tangible stockholders’ equity to tangible assets (non-GAAP)		9.99	%			8.79	%			8.73	%			8.82	%			8.82	%
(1) Calculated on a fully tax-equivalent basis.
(2) Calculated as non-interest expense as a percentage of net interest income plus non-interest income.

 

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets (Unaudited)
	June 30, 2017				March 31, 2017				December 31, 2016				September 30, 2016				June 30, 2016
ASSETS	(In Thousands Except Share Data)
Cash and due from banks	$	40,599			$	33,565			$	36,055			$	32,196			$	22,677
Short-term investments		72,996				29,178				31,602				32,351				47,265
Total cash and cash equivalents		113,595				62,743				67,657				64,547				69,942
Investment securities available-for-sale		540,976				528,433				523,634				524,295				532,967
Investment securities held-to-maturity		108,963				100,691				87,120				77,094				69,590
Total investment securities		649,939				629,124				610,754				601,389				602,557
Loans and leases held-for-sale		593				1,152				13,078				21,109				1,585
Loans and leases:
Commercial real estate loans:
Commercial real estate mortgage		2,062,646				2,066,599				2,050,382				2,038,477				1,974,289
Multi-family mortgage		720,484				733,822				731,186				703,743				721,771
Construction		153,057				150,734				136,999				141,208				144,463
Total commercial real estate loans		2,936,187				2,951,155				2,918,567				2,883,428				2,840,523
Commercial loans and leases:
Commercial		691,070				644,240				635,426				652,316				628,281
Equipment financing		839,932				815,753				799,860				764,647				750,503
Condominium association		58,130				60,396				60,122				53,903				61,962
Total commercial loans and leases		1,589,132				1,520,389				1,495,408				1,470,866				1,440,746
Consumer loans:
Residential mortgage		646,679				631,863				624,349				617,065				624,423
Home equity		351,124				343,386				342,241				340,954				333,527
Other consumer		14,284				14,986				18,299				19,987				19,819
Total consumer loans		1,012,087				990,235				984,889				978,006				977,769
Total loans and leases		5,537,406				5,461,779				5,398,864				5,332,300				5,259,038
Allowance for loan and lease losses		(64,521	)			(66,133	)			(53,666	)			(58,892	)			(57,258	)
Net loans and leases		5,472,885				5,395,646				5,345,198				5,273,408				5,201,780
Restricted equity securities		66,988				68,065				64,511				65,683				64,677
Premises and equipment, net of accumulated depreciation		81,052				76,973				76,176				75,462				76,131
Deferred tax asset		26,982				29,859				25,247				22,894				22,301
Goodwill		137,890				137,890				137,890				137,890				137,890
Identified intangible assets, net of accumulated amortization		7,082				7,601				8,133				8,754				9,377
Other real estate owned and repossessed assets		4,873				2,286				1,399				1,152				751
Other assets		96,188				86,382				88,086				108,024				109,511
Total assets	$	6,658,067			$	6,497,721			$	6,438,129			$	6,380,312			$	6,296,502
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest-bearing deposits:
Demand checking accounts	$	920,035			$	898,161			$	900,474			$	889,278			$	852,869
Interest-bearing deposits:
NOW accounts		321,982				321,392				323,160				298,629				295,126
Savings accounts		584,408				575,808				613,061				591,156				557,607
Money market accounts		1,763,443				1,765,895				1,733,359				1,679,797				1,628,550
Certificate of deposit accounts		1,119,551				1,090,647				1,041,022				1,106,046				1,151,002
Total interest-bearing deposits		3,789,384				3,753,742				3,710,602				3,675,628				3,632,285
Total deposits		4,709,419				4,651,903				4,611,076				4,564,906				4,485,154
Borrowed funds:
Advances from the FHLBB		930,028				930,001				910,774				900,971				904,685
Subordinated debentures and notes		83,188				83,147				83,105				83,043				83,021
Other borrowed funds		53,427				43,637				50,207				38,639				40,733
Total borrowed funds		1,066,643				1,056,785				1,044,086				1,022,653				1,028,439
Mortgagors’ escrow accounts		7,714				8,032				7,645				8,166				7,419
Accrued expenses and other liabilities		71,232				69,752				72,573				81,670				79,541
Total liabilities		5,855,008				5,786,472				5,735,380				5,677,395				5,600,553
Stockholders' equity:
Brookline Bancorp, Inc. stockholders’ equity:
Common stock, $0.01 par value; 200,000,000 shares authorized; 81,695,695 shares issued		817				757				757				757				757
Additional paid-in capital		699,923				617,364				616,734				616,142				617,738
Retained earnings, partially restricted		151,759				143,766				136,671				129,740				122,469
Accumulated other comprehensive (loss) income		(2,175	)			(3,261	)			(3,818	)			4,896				5,969
Treasury stock, at cost;
4,717,775 shares, 4,707,096 shares, 4,707,096 shares, 4,734,512 shares, and 4,862,193 shares, respectively		(53,837	)			(53,837	)			(53,837	)			(54,151	)			(56,215	)
Unallocated common stock held by the Employee Stock Ownership Plan;
159,510 shares, 168,099 shares, 176,688 shares, 185,787 shares, and 194,880 shares, respectively		(869	)			(916	)			(963	)			(1,013	)			(1,062	)
Total Brookline Bancorp, Inc. stockholders’ equity		795,618				703,873				695,544				696,371				689,656
Noncontrolling interest in subsidiary		7,441				7,376				7,205				6,546				6,293
Total stockholders' equity		803,059				711,249				702,749				702,917				695,949
Total liabilities and stockholders' equity	$	6,658,067			$	6,497,721			$	6,438,129			$	6,380,312			$	6,296,502

 

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
	Three Months Ended
	June 30, 2017				March 31, 2017				December 31, 2016			September 30, 2016			June 30, 2016
	(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases	$	61,138			$	58,558			$	57,247		$	57,858		$	55,369
Debt securities		3,156				3,000				2,881			2,822			3,075
Marketable and restricted equity securities		797				726				762			804			729
Short-term investments		95				67				93			47			63
Total interest and dividend income		65,186				62,351				60,983			61,531			59,236
Interest expense:
Deposits		5,543				5,080				5,195			5,112			5,018
Borrowed funds		4,060				4,173				3,934			4,069			3,961
Total interest expense		9,603				9,253				9,129			9,181			8,979
Net interest income		55,583				53,098				51,854			52,350			50,257
Provision for credit losses		873				13,402				3,215			2,215			2,545
Net interest income after provision for credit losses		54,710				39,696				48,639			50,135			47,712
Non-interest income:
Deposit fees		2,552				2,252				2,263			2,289			2,216
Loan fees		229				261				322			330			287
Loan level derivative income, net		186				402				265			858			1,210
Gain on sales of investment securities, net		—				11,393				—			—			—
Gain on sales of loans and leases held-for-sale		307				353				1,270			588			345
Loss on sale/disposals of premises and equipment, net		(18	)			(26	)			—			—			—
Other		1,221				1,273				1,310			1,264			1,317
Total non-interest income		4,477				15,908				5,430			5,329			5,375
Non-interest expense:
Compensation and employee benefits		20,910				19,784				19,657			20,369			19,083
Occupancy		3,657				3,645				3,520			3,411			3,391
Equipment and data processing		4,164				4,063				4,028			3,826			3,898
Professional services		1,036				1,106				927			997			962
FDIC insurance		951				855				655			956			843
Advertising and marketing		857				817				823			844			853
Amortization of identified intangible assets		519				532				621			623			621
Other		2,701				2,954				2,376			2,362			2,599
Total non-interest expense		34,795				33,756				32,607			33,388			32,250
Income before provision for income taxes		24,392				21,848				21,462			22,076			20,837
Provision for income taxes		8,759				7,835				7,524			7,804			7,465
Net income before noncontrolling interest in subsidiary		15,633				14,013				13,938			14,272			13,372
Less net income attributable to noncontrolling interest in subsidiary		753				568				659			655			718
Net income attributable to Brookline Bancorp, Inc.	$	14,880			$	13,445			$	13,279		$	13,617		$	12,654
Earnings per common share:
Basic	$	0.20			$	0.19			$	0.19		$	0.19		$	0.18
Diluted	$	0.20			$	0.19			$	0.19		$	0.19		$	0.18
Weighted average common shares outstanding during the period:
Basic		74,325,013				70,386,766				70,362,702			70,299,722			70,196,950
Diluted		74,810,088				70,844,096				70,592,204			70,450,760			70,388,438
Dividends declared per common share	$	0.09			$	0.09			$	0.09		$	0.09		$	0.09

 

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
	Six Months Ended June 30,
	2017				2016
	(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases	$	119,696			$	109,616
Debt securities		6,156				6,007
Marketable and restricted equity securities		1,523				1,409
Short-term investments		162				102
Total interest and dividend income		127,537				117,134
Interest expense:
Deposits		10,623				9,763
Borrowed funds		8,233				7,911
Total interest expense		18,856				17,674
Net interest income		108,681				99,460
Provision for credit losses		14,275				4,923
Net interest income after provision for credit losses		94,406				94,537
Non-interest income:
Deposit Fees		4,961				4,361
Loan Fees		490				593
Loan level derivative income, net		588				2,839
Gain on sales of investment securities, net		11,393				—
Gain on sales of loans and leases held-for-sale		660				1,250
Loss on sale/disposals of premises and equipment, net		(44	)			—
Other		2,337				2,777
Total non-interest income		20,385				11,820
Non-interest expense:
Compensation and employee benefits		40,694				37,810
Occupancy		7,302				6,917
Equipment and data processing		8,227				7,588
Professional services		2,142				1,928
FDIC insurance		1,806				1,721
Advertising and marketing		1,674				1,714
Amortization of identified intangible assets		1,051				1,256
Other		5,655				5,345
Total non-interest expense		68,551				64,279
Income before provision for income taxes		46,240				42,078
Provision for income taxes		16,594				15,064
Net income before noncontrolling interest in subsidiary		29,646				27,014
Less net income attributable to noncontrolling interest in subsidiary		1,321				1,548
Net income attributable to Brookline Bancorp, Inc.	$	28,325			$	25,466
Earnings per common share:
Basic	$	0.39			$	0.36
Diluted	$	0.39			$	0.36
Weighted average common shares outstanding during the period:
Basic		72,366,769				70,191,935
Diluted		72,837,971				70,365,923
Dividends declared per common share	$	0.18			$	0.18

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Asset Quality Analysis (Unaudited)
	At and for the Three Months Ended
	June 30, 2017				March 31, 2017				December 31, 2016				September 30, 2016				June 30, 2016
	(Dollars in Thousands)
NONPERFORMING ASSETS:
Loans and leases accounted for on a nonaccrual basis:
Commercial real estate mortgage	$	2,766			$	5,671			$	5,340			$	1,688			$	2,408
Multi-family mortgage		1,075				1,095				1,404				1,418				1,446
Total commercial real estate loans		3,841				6,766				6,744				3,106				3,854
Commercial		23,886				27,442				22,974				24,051				17,944
Equipment financing		9,702				6,445				6,758				6,652				6,947
Total commercial loans and leases		33,588				33,887				29,732				30,703				24,891
Residential mortgage		3,429				3,001				2,501				1,749				2,048
Home equity		1,366				1,333				951				1,780				1,976
Other consumer		43				76				149				214				289
Total consumer loans		4,838				4,410				3,601				3,743				4,313
Total nonaccrual loans and leases		42,267				45,063				40,077				37,552				33,058
Other real estate owned		3,384				618				618				367				407
Other repossessed assets		1,489				1,668				781				785				344
Total nonperforming assets	$	47,140			$	47,349			$	41,476			$	38,704			$	33,809
Loans and leases past due greater than 90 days and still accruing	$	2,706			$	6,515			$	7,077			$	8,275			$	4,151
Troubled debt restructurings on accrual		14,732				13,662				13,883				16,303				15,693
Troubled debt restructurings on nonaccrual		16,146				11,756				11,919				15,715				15,621
Total troubled debt restructurings	$	30,878			$	25,418			$	25,802			$	32,018			$	31,314
Nonperforming loans and leases as a percentage of total loans and leases		0.76	%			0.83	%			0.74	%			0.70	%			0.63	%
Nonperforming assets as a percentage of total assets		0.71	%			0.73	%			0.64	%			0.61	%			0.54	%
PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:
Allowance for loan and lease losses at beginning of period	$	66,133			$	53,666			$	58,892			$	57,258			$	58,606
Charge-offs		(3,365	)			(1,382	)			(8,629	)			(839	)			(4,324	)
Recoveries		963				387				292				319				306
Net charge-offs		(2,402	)			(995	)			(8,337	)			(520	)			(4,018	)
Provision for loan and lease losses		790				13,462				3,111				2,154				2,670
Allowance for loan and lease losses at end of period	$	64,521			$	66,133			$	53,666			$	58,892			$	57,258
Allowance for loan and lease losses as a percentage of total loans and leases		1.17	%			1.21	%			0.99	%			1.10	%			1.09	%
Allowance for loan and lease losses related to originated loans and leases as a percentage of originated loans and leases (non-GAAP)		1.20	%			1.25	%			1.03	%			1.15	%			1.13	%
NET CHARGE-OFFS:
Commercial real estate loans	$	(131	)		$	(116	)		$	635			$	50			$	1,153
Commercial loans and leases		2,546				1,065				7,119				375				2,316
Consumer loans		(13	)			46				583				95				549
Total net charge-offs	$	2,402			$	995			$	8,337			$	520			$	4,018
Net loan and lease charge-offs as a percentage of average loans and leases (annualized)		0.17	%			0.07	%			0.62	%			0.04	%			0.31	%

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Average Yields / Costs (Unaudited)
	Three Months Ended
	June 30, 2017										March 31, 2017										June 30, 2016
	Average Balance				Interest (1)			Average Yield/ Cost			Average Balance				Interest (1)			Average Yield/ Cost			Average Balance				Interest (1)			Average Yield/ Cost
	(Dollars in Thousands)
Assets:
Interest-earning assets:
Investments:
Debt securities (2)	$	638,798			$	3,267		2.05	%		$	613,520			$	3,110		2.03	%		$	605,383			$	3,157		2.09	%
Marketable and restricted equity securities (2)		68,629				799		4.66	%			69,508				718		4.13	%			66,422				732		4.41	%
Short-term investments		43,739				95		0.87	%			32,127				67		0.84	%			60,570				63		0.42	%
Total investments		751,166				4,161		2.22	%			715,155				3,895		2.18	%			732,375				3,952		2.16	%
Loans and Leases:
Commercial real estate loans (3)		2,942,927				30,368		4.08	%			2,930,345				29,467		4.02	%			2,784,627				28,278		4.06	%
Commercial loans (3)		728,014				7,665		4.17	%			699,687				7,113		4.07	%			689,696				6,649		3.82	%
Equipment financing (3)		826,877				13,810		6.68	%			806,139				13,114		6.51	%			730,193				11,751		6.44	%
Residential mortgage loans (3)		639,449				5,859		3.67	%			634,885				5,609		3.53	%			626,249				5,633		3.60	%
Other consumer loans (3)		362,404				3,677		4.07	%			360,791				3,495		3.93	%			351,051				3,309		3.78	%
Total loans and leases		5,499,671				61,379		4.46	%			5,431,847				58,798		4.33	%			5,181,816				55,620		4.29	%
Total interest-earning assets		6,250,837				65,540		4.19	%			6,147,002				62,693		4.08	%			5,914,191				59,572		4.03	%
Allowance for loan and lease losses		(66,853	)									(54,314	)									(58,789	)
Non-interest-earning assets		372,681										368,495										382,061
Total assets	$	6,556,665									$	6,461,183									$	6,237,463
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts	$	316,486				54		0.07	%		$	320,671				55		0.07	%		$	294,484				53		0.07	%
Savings accounts		592,150				300		0.20	%			614,085				310		0.20	%			554,474				336		0.24	%
Money market accounts		1,767,973				2,131		0.48	%			1,744,534				2,009		0.47	%			1,655,843				1,867		0.45	%
Certificates of deposit		1,101,094				3,058		1.11	%			1,021,949				2,706		1.07	%			1,132,272				2,762		0.98	%
Total interest-bearing deposits		3,777,703				5,543		0.59	%			3,701,239				5,080		0.56	%			3,637,073				5,018		0.55	%
Borrowings
Advances from the FHLBB		896,565				2,755		1.22	%			929,822				2,857		1.23	%			879,499				2,678		1.20	%
Subordinated debentures and notes		83,165				1,271		6.11	%			83,124				1,260		6.07	%			82,997				1,258		6.06	%
Other borrowed funds		47,466				34		0.29	%			60,634				56		0.38	%			41,305				25		0.24	%
Total borrowings		1,027,196				4,060		1.56	%			1,073,580				4,173		1.55	%			1,003,801				3,961		1.56	%
Total interest-bearing liabilities		4,804,899				9,603		0.80	%			4,774,819				9,253		0.79	%			4,640,874				8,979		0.78	%
Non-interest-bearing liabilities:
Demand checking accounts		900,302										898,481										825,880
Other non-interest-bearing liabilities		77,682										71,812										78,497
Total liabilities		5,782,883										5,745,112										5,545,251
Brookline Bancorp, Inc. stockholders’ equity		766,529										709,095										685,996
Noncontrolling interest in subsidiary		7,253										6,976										6,216
Total liabilities and equity	$	6,556,665									$	6,461,183									$	6,237,463
Net interest income (tax-equivalent basis) /Interest-rate spread (4)						55,937		3.39	%							53,440		3.29	%							50,593		3.25	%
Less adjustment of tax-exempt income						354										342										336
Net interest income					$	55,583									$	53,098									$	50,257
Net interest margin (5)								3.59	%									3.53	%									3.44	%
(1) Tax-exempt income on debt securities, equity securities and revenue bonds included in commercial real estate loans is included on a tax-equivalent basis.
(2) Average balances include unrealized gains (losses) on investment securities. Dividend payments may not be consistent and average yield on equity securities may vary from month to month.
(3) Loans on nonaccrual status are included in the average balances.
(4) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
(5) Net interest margin represents net interest income (tax-equivalent basis) divided by average interest-earning assets on an actual/actual basis.

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Average Yields / Costs (Unaudited)
	Six Months Ended
	June 30, 2017										June 30, 2016
	Average Balance				Interest (1)			Average Yield/ Cost			Average Balance				Interest (1)			Average Yield/ Cost
	(Dollars in Thousands)
Assets:
Interest-earning assets:
Investments:
Debt securities (2)	$	626,229			$	6,377		2.04	%		$	604,709			$	6,168		2.04	%
Marketable and restricted equity securities (2)		69,066				1,517		4.39	%			66,654				1,411		4.24	%
Short-term investments		37,965				162		0.86	%			51,214				102		0.40	%
Total investments		733,260				8,056		2.20	%			722,577				7,681		2.13	%
Loans and Leases:
Commercial real estate loans (3)		2,936,671				59,835		4.05	%			2,741,363				55,544		4.05	%
Commercial loans (3)		715,377				14,778		4.11	%			680,183				13,300		3.87	%
Equipment financing (3)		816,565				26,924		6.59	%			728,560				23,501		6.45	%
Residential mortgage loans (3)		637,179				11,468		3.60	%			625,800				11,192		3.58	%
Other consumer loans (3)		361,602				7,172		4.00	%			346,810				6,579		3.80	%
Total loans and leases		5,467,394				120,177		4.40	%			5,122,716				110,116		4.30	%
Total interest-earning assets		6,200,654				128,233		4.14	%			5,845,293				117,797		4.03	%
Allowance for loan and lease losses		(60,618	)									(57,957	)
Non-interest-earning assets		369,152										377,822
Total assets	$	6,509,188									$	6,165,158
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts	$	318,567				109		0.07	%		$	286,949				104		0.07	%
Savings accounts		603,057				610		0.20	%			559,577				680		0.24	%
Money market accounts		1,756,318				4,140		0.48	%			1,642,448				3,642		0.45	%
Certificates of deposit		1,061,740				5,764		1.09	%			1,104,956				5,337		0.97	%
Total interest-bearing deposits		3,739,682				10,623		0.57	%			3,593,930				9,763		0.55	%
Borrowings
Advances from the FHLBB		913,102				5,612		1.22	%			871,729				5,347		1.21	%
Subordinated debentures and notes		83,145				2,531		6.09	%			82,976				2,514		6.06	%
Other borrowed funds		54,014				90		0.34	%			40,464				50		0.25	%
Total borrowings		1,050,261				8,233		1.56	%			995,169				7,911		1.57	%
Total interest-bearing liabilities		4,789,943				18,856		0.79	%			4,589,099				17,674		0.77	%
Non-interest-bearing liabilities:
Demand checking accounts		899,396										812,374
Other non-interest-bearing liabilities		74,763										76,099
Total liabilities		5,764,102										5,477,572
Brookline Bancorp, Inc. stockholders’ equity		737,971										681,548
Noncontrolling interest in subsidiary		7,115										6,038
Total liabilities and equity	$	6,509,188									$	6,165,158
Net interest income (tax-equivalent basis) /Interest-rate spread (4)						109,377		3.35	%							100,123		3.26	%
Less adjustment of tax-exempt income						696										663
Net interest income					$	108,681									$	99,460
Net interest margin (5)								3.56	%									3.44	%
(1) Tax-exempt income on debt securities, equity securities and revenue bonds included in commercial real estate loans is included on a tax-equivalent basis.
(2) Average balances include unrealized gains (losses) on investment securities. Dividend payments may not be consistent and average yield on equity securities may vary from month to month.
(3) Loans on nonaccrual status are included in the average balances.
(4) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
(5) Net interest margin represents net interest income (tax-equivalent basis) divided by average interest-earning assets on an actual/actual basis.

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Non-GAAP Financial Information (Unaudited)
	At and for the Three Months Ended
	June 30, 2017				March 31, 2017				December 31, 2016				September 30, 2016				June 30, 2016
	(Dollars in Thousands)
Net income, as reported	$	14,880			$	13,445			$	13,279			$	13,617			$	12,654
Average total assets	$	6,556,665			$	6,461,183			$	6,425,983			$	6,360,097			$	6,237,463
Less: Average goodwill and average identified intangible assets, net		145,269				145,778				146,382				146,997				147,619
Average tangible assets	$	6,411,396			$	6,315,405			$	6,279,601			$	6,213,100			$	6,089,844
Return on average tangible assets (annualized)		0.93	%			0.85	%			0.85	%			0.88	%			0.83	%
Average total stockholders’ equity	$	766,529			$	709,095			$	699,749			$	695,205			$	685,996
Less: Average goodwill and average identified intangible assets, net		145,269				145,778				146,382				146,997				147,619
Average tangible stockholders’ equity	$	621,260			$	563,317			$	553,367			$	548,208			$	538,377
Return on average tangible stockholders’ equity (annualized)		9.58	%			9.55	%			9.60	%			9.94	%			9.40	%
Brookline Bancorp, Inc. stockholders’ equity	$	795,618			$	703,873			$	695,544			$	696,371			$	689,656
Less:
Goodwill		137,890				137,890				137,890				137,890				137,890
Identified intangible assets, net		7,082				7,601				8,133				8,754				9,377
Tangible stockholders' equity	$	650,646			$	558,382			$	549,521			$	549,727			$	542,389
Total assets	$	6,658,067			$	6,497,721			$	6,438,129			$	6,380,312			$	6,296,502
Less:
Goodwill		137,890				137,890				137,890				137,890				137,890
Identified intangible assets, net		7,082				7,601				8,133				8,754				9,377
Tangible assets	$	6,513,095			$	6,352,230			$	6,292,106			$	6,233,668			$	6,149,235
Tangible stockholders’ equity to tangible assets		9.99	%			8.79	%			8.73	%			8.82	%			8.82	%
Tangible stockholders' equity	$	650,646			$	558,382			$	549,521			$	549,727			$	542,389
Number of common shares issued		81,695,695				75,744,445				75,744,445				75,744,445				75,744,445
Less:
Treasury shares		4,717,775				4,707,096				4,707,096				4,734,512				4,862,193
Unallocated ESOP shares		159,510				168,099				176,688				185,787				194,880
Unvested restricted shares		457,966				476,854				476,854				476,938				484,066
Number of common shares outstanding		76,360,444				70,392,396				70,383,807				70,347,208				70,203,306
Tangible book value per common share	$	8.52			$	7.93			$	7.81			$	7.81			$	7.73
Allowance for loan and lease losses	$	64,521			$	66,133			$	53,666			$	58,892			$	57,258
Less:
Allowance for acquired loans and leases losses		1,188				1,304				1,253				1,640				2,178
Allowance for originated loan and lease losses	$	63,333			$	64,829			$	52,413			$	57,252			$	55,080
Total loans and leases	$	5,537,406			$	5,461,779			$	5,398,864			$	5,332,300			$	5,259,038
Less:
Total acquired loans and leases		271,157				295,055				315,304				346,377				371,986
Total originated loans and leases	$	5,266,249			$	5,166,724			$	5,083,560			$	4,985,923			$	4,887,052
Allowance for loan and lease losses related to originated loans and leases as a percentage of originated loans and leases		1.20	%			1.25	%			1.03	%			1.15	%			1.13	%

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.