Brookline Bancorp Announces Second Quarter Results

BOSTON, July 20, 2016 /PRNewswire/ — Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced net income of $12.7 million, or $0.18 per basic and diluted share, for the second quarter of 2016, compared to $11.9 million, or $0.17 per basic and diluted share, for the second quarter of 2015.

Paul Perrault, President and Chief Executive Officer of the Company, stated: “We have delivered another solid quarter for our stockholders with strong loan and deposit growth. I am proud of our employees who work together to live the Brookline Bancorp culture of providing excellent customer service and contributing to the growth of our Company.”

BALANCE SHEET

Total assets at June 30, 2016 increased $115.5 million to $6.3 billion from $6.2 billion at March 31, 2016, and increased $254.2 million from $6.0 billion at December 31, 2015. The increase in total assets of 7.5 percent on an annualized basis during the second quarter of 2016 was primarily driven by increases in loans and leases. At June 30, 2016, total loans and leases were $5.3 billion, representing an increase of $128.6 million from March 31, 2016, and an increase of $263.5 million from December 31, 2015. During the second quarter of 2016, total loans and leases grew 10.0 percent on an annualized basis. Strong loan growth continued in the commercial real estate and commercial loan and lease portfolios, which increased $116.2 million during the second quarter of 2016, or 11.2 percent on an annualized basis.

Investment securities at June 30, 2016 decreased $17.0 million to $602.6 million, representing 9.6 percent of total assets, as compared to $619.6 million, or 10.0 percent of total assets, at March 31, 2016, and decreased approximately $4.4 million from $607.0 million, or 10.0 percent of total assets, at December 31, 2015.

Total deposits at June 30, 2016 increased $91.7 million to $4.5 billion from $4.4 billion at March 31, 2016 and increased $179.1 million from $4.3 billion at December 31, 2015. Core deposits, which consist of demand checking, NOW, savings, and money market accounts, increased $48.8 million from March 31, 2016 and increased $116.0 million from December 31, 2015. The average cost of interest bearing deposits increased slightly to 0.55 percent for the three months ended June 30, 2016 from 0.54 percent for the three months ended March 31, 2016.

Total borrowings at June 30, 2016 remained consistent at $1.0 billion with March 31, 2016 and increased $45.4 million from $983.0 million at December 31, 2015.

The ratio of stockholders’ equity to total assets was 10.95 percent at June 30, 2016, as compared to 11.01 percent at March 31, 2016, and 11.05 percent at December 31, 2015, respectively. The ratio of tangible stockholders’ equity to tangible assets was 8.82 percent at June 30, 2016, as compared to 8.83 percent at March 31, 2016, and 8.81 percent at December 31, 2015.

NET INTEREST INCOME

Net interest income increased $1.1 million to $50.3 million during the second quarter of 2016 from the first quarter driven by the growth in interest earning assets as the net interest margin decreased 1 basis point to 3.44 percent.

PROVISION FOR LOAN AND LEASE LOSSES

The Company recorded a provision for loan and lease losses of $2.7 million for the quarter ended June 30, 2016, compared to $2.3 million for the quarter ended March 31, 2016.

Net charge-offs increased $3.6 million to $4.0 million for the second quarter of 2016 from $0.4 million for the first quarter of 2016 due to a $3.4 million charge off of a commercial relationship which had a specific reserve of $3.3 million recorded in a prior period. As a result, the ratio of net charge-offs to average loans on an annualized basis increased to 31 basis points for the second quarter of 2016 from 3 basis points for the first quarter of 2016.

The allowance for loan and lease losses represented 1.09 percent of total loans and leases at June 30, 2016, compared to 1.14 percent at March 31, 2016 and December 31, 2015. The allowance for loan and lease losses related to originated loans and leases as a percentage of originated loans and leases was 1.13 percent at June 30, 2016, compared to 1.20 percent at March 31, 2016 and December 31, 2015.

NON-INTEREST INCOME

Non-interest income for the quarter ended June 30, 2016 decreased $1.1 million to $5.4 million from $6.5 million for the first quarter. The decrease was primarily driven by a decrease of $0.6 million in gain on sales of loans and leases held-for-sale and a decrease of $0.4 million due to lower loan level derivative income.

NON-INTEREST EXPENSE

Non-interest expense for the quarter ended June 30, 2016 increased $0.2 million to $32.3 million from $32.1 million for the quarter ended March 31, 2016. The Company’s efficiency ratio was 57.97 percent at June 30, 2016, compared with 57.57 percent at March 31, 2016.

PROVISION FOR INCOME TAXES

The effective tax rate was 35.8 percent for the three months and six months ended June 30, 2016.

RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

The return on average assets decreased during the second quarter of 2016 to 0.81 percent at June 30, 2016 from 0.84 percent at March 31, 2016. The return on average tangible assets decreased to 0.83 percent for the second quarter of 2016 from 0.86 percent for the first quarter of 2016. 

The return on average stockholders’ equity decreased during the second quarter of 2016 to 7.38 percent from 7.57 percent for the first quarter of 2016. The return on average tangible stockholders’ equity decreased to 9.40 percent for the second quarter of 2016 from 9.69 percent for the first quarter of 2016.

ASSET QUALITY

The ratio of nonperforming loans and leases to total loans and leases was 0.61 percent at June 30, 2016 as compared to 0.62 percent at March 31, 2016. Nonperforming loans and leases at June 30, 2016 remained consistent at $31.9 million with March 31, 2016. Nonperforming assets at June 30, 2016 increased $0.2 million to $32.7 million, or 0.52 percent of total assets, from $32.5 million, or 0.53 percent of total assets, at March 31, 2016.

DIVIDEND DECLARED

The Company’s Board of Directors approved a dividend of $0.09 per share for the quarter ended June 30, 2016. The dividend will be paid on August 19, 2016 to stockholders of record on August 5, 2016.

CONFERENCE CALL

The Company will conduct a conference call/webcast at 1:30 PM Eastern Daylight Time on Thursday, July 21, 2016 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 10088672. 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 $6.3 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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SOURCE Brookline Bancorp, Inc.

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