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Brookline Bancorp Announces Fourth Quarter Results
来源: Nasdaq GlobeNewswire / 27 1月 2021 15:15:01 America/Chicago
Net Income of $26.7 million, EPS of $0.34
Announces $0.115 Dividend per Share
Announces $10.0 million Stock Buyback Program
BOSTON, Jan. 27, 2021 (GLOBE NEWSWIRE) -- Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced net income of $26.7 million, or $0.34 per basic and diluted share, for the fourth quarter of 2020, compared to $18.7 million, or $0.24 per basic and diluted share, for the third quarter of 2020, and $22.2 million, or $0.28 per basic and diluted share, for the fourth quarter of 2019.
For the year ended December 31, 2020, the Company reported net income of $47.6 million, or $0.60 per basic and diluted share. This compared to $87.7 million, or $1.10 per basic and diluted share, for the year ended December 31, 2019.
Paul Perrault, President and Chief Executive Officer, commented on the Company’s performance in 2020, “This past year was challenging in many respects, and I would like to recognize our employees for their hard work. Given the challenges of this past year, I am very pleased with our financial performance and this quarter’s earnings report. We are cautiously optimistic and think that we are well positioned as we look forward to what we hope is a more positive environment in 2021, but remain diligent and prudent as we continue to navigate our way through these challenging times.”
On December 27, 2020, President Trump signed the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (the “Economic Aid Act”) which, among other items provides for a third round of Paycheck Protection Program (“PPP”) loans. The Company’s banks are participating in the PPP program and as of January 27, 2021, the Company has not funded any third round PPP loans. In the first two rounds of PPP funding, the Company funded 2,922 PPP loans totaling $581.7 million as of August 8, 2020 when the program closed, of which $489.2 million remains outstanding, net of deferred fees and costs at December 31, 2020.
BALANCE SHEET
Total assets at December 31, 2020 decreased $57.8 million to $8.94 billion from $9.00 billion at September 30, 2020, and increased $1.09 billion from $7.86 billion at December 31, 2019. At December 31, 2020, total loans and leases were $7.27 billion, representing a decrease of $126.8 million from September 30, 2020, primarily driven by PPP Forgiveness funds received and decrease of $79.2 million in PPP originations, and an increase of $531.7 million from December 31, 2019, primarily driven by PPP loan activity.
Total investment securities at December 31, 2020 decreased $38.0 million to $746.3 million from $784.4 million at September 30, 2020, and increased $157.0 million from $589.4 million at December 31, 2019. Total cash and cash equivalents at December 31, 2020 increased $117.6 million to $434.9 million from $317.3 million at September 30, 2020, and increased $357.1 million from $77.8 million at December 31, 2019. As of December 31, 2020, total investment securities and total cash and cash equivalents represented 13.2 percent of total assets as compared to 12.2 percent and 8.5 percent as of September 30, 2020 and December 31, 2019, respectively.
Total deposits at December 31, 2020 increased $118.2 million to $6.91 billion from $6.79 billion at September 30, 2020 and increased $1.08 billion from $5.83 billion at December 31, 2019.
Total borrowed funds at December 31, 2020 decreased $184.8 million to $820.2 million from $1.01 billion at September 30, 2020 and decreased $82.5 million from $902.7 million at December 31, 2019.
The ratio of stockholders’ equity to total assets was 10.53 percent at December 31, 2020, as compared to 10.39 percent at September 30, 2020, and 12.04 percent at December 31, 2019. The ratio of tangible stockholders’ equity to tangible assets (non-GAAP) was 8.86 percent at December 31, 2020, as compared to 8.73 percent at September 30, 2020, and 10.15 percent at December 31, 2019. Tangible book value per share (non-GAAP) increased $0.19 from $9.77 at September 30, 2020 to $9.96 at December 31, 2020, compared to $9.80 at December 31, 2019.
NET INTEREST INCOME
Net interest income increased $2.3 million to $68.2 million during the fourth quarter of 2020 from $65.9 million for the quarter ended September 30, 2020. The net interest margin increased 15 basis points to 3.23 percent for the three months ended December 31, 2020 from 3.08 percent for the three months ended September 30, 2020.
NON-INTEREST INCOME
Non-interest income for the quarter ended December 31, 2020 decreased $0.7 million to $4.2 million from $4.9 million for the quarter ended September 30, 2020. The decrease was primarily driven by decreases of $0.6 million in gain on sales of loans and leases and $0.4 million in loan level derivative income, net, partially offset by increases of $0.2 million in loan fees and $0.1 million in other non-interest income.
PROVISION FOR CREDIT LOSSES
On January 1, 2020, the Company adopted ASU 2016-13 "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", commonly referred to as CECL.
The Company recorded a negative provision for credit losses of $2.1 million for the quarter ended December 31, 2020, compared to a provision of $4.5 million for the quarter ended September 30, 2020. The negative provision results from, exclusive of PPP loans, a reduction in the quarter of both outstanding loans and commitments; the charge-off of a specifically reserved loan; and a modestly improved economic outlook in the models used for the ACL.
Total net charge-offs for the fourth quarter of 2020 were $4.4 million compared to $5.0 million in the third quarter of 2020. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis decreased to 24 basis points for the fourth quarter of 2020 from 27 basis points for the third quarter of 2020.
The allowance for loan and lease losses represented 1.57 percent of total loans and leases at December 31, 2020, compared to 1.62 percent at September 30, 2020, and 0.91 percent at December 31, 2019. Excluding PPP loans, the allowance for loan and lease losses represents 1.69 percent coverage at December 31, 2020 compared to 1.76 percent at September 30, 2020.
ASSET QUALITY
The ratio of total nonperforming loans and leases to total loans and leases was 0.53 percent at December 31, 2020 as compared to 0.51 percent at September 30, 2020. Nonperforming loans and leases increased $0.4 million to $38.4 million at December 31, 2020 from $38.0 million at September 30, 2020. The ratio of nonperforming assets to total assets was 0.50 percent at December 31, 2020 as compared to 0.44 percent at September 30, 2020. Nonperforming assets increased $5.6 million to $45.0 million at December 31, 2020 from $39.4 million at September 30, 2020.
From March 1, 2020 through the earlier of January 1, 2022 or 60 days after the termination date of the national emergency declared by the President on March 13, 2020 concerning the COVID-19 outbreak (the “national emergency”), a financial institution may elect to suspend the requirements under accounting principles generally accepted in the U.S. for loan modifications related to the COVID-19 pandemic that would otherwise be categorized as a troubled debt restructured, including impairment accounting. This troubled debt restructuring relief applies for the term of the loan modification that occurs during the applicable period for a loan that was not more than 30 days past due as of December 31, 2019. Financial institutions are required to maintain records of the volume of loans involved in modifications to which troubled debt restructuring relief is applicable. As of December 31, 2020, approximately 92 percent of loans granted an initial loan payment deferral have returned to payment status and 298 credits totaling $90 million or 1.2 percent of total loans outstanding have been modified.
NON-INTEREST EXPENSE
Non-interest expense for the quarter ended December 31, 2020 decreased $0.9 million to $40.0 million from $40.9 million for the quarter ended September 30, 2020. The decrease was primarily driven by decreases of $1.0 million in compensation and employee benefits and $0.2 million in other non-interest expense, partially offset by an increase of $0.3 million in FDIC insurance.
PROVISION FOR INCOME TAXES
The effective tax rate was 22.7 percent and 23.3 percent for the three and twelve months ended December 31, 2020, respectively.
RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY
The annualized return on average assets increased to 1.20 percent during the fourth quarter of 2020 compared to 0.83 percent for the third quarter of 2020; and was 0.55 percent for the year ended December 31, 2020, compared to 1.15 percent for the year ended December 31, 2019.
The annualized return on average tangible stockholders' equity increased to 13.79 percent during the fourth quarter of 2020 compared to 9.70 percent for the third quarter of 2020; and was 6.17 percent for the year ended December 31, 2020 compared to 11.67 percent for the year ended December 31, 2019.
DIVIDEND DECLARED
The Company’s Board approved a dividend of $0.115 per share for the quarter ended December 31, 2020. The dividend will be paid on February 26, 2021 to stockholders of record on February 12, 2021.
STOCK REPURCHASE
On December 4, 2019, the Board of Directors (the "Board") approved a stock repurchase program (the "Program") authorizing management to repurchase up to $10.0 million of the Company’s common stock over a period of twelve months commencing on January 1, 2020. On March 9, 2020, the Board approved an increase in the repurchase amount of $10.0 million bringing the total authorized amount to $20.0 million. Effective March 24, 2020, the Company suspended the Program. On October 28, 2020, the Board authorized the resumption of the Program. As of December 31, 2020, the Company has repurchased 1,715,730 shares at a weighted average price of $11.66.
On January 27, 2021, the Board of Directors (the “Board”) of the Company approved a stock repurchase program authorizing management to repurchase up to $10.0 million of the Company’s common stock commencing on February 1, 2021 and ending on December 31, 2021.
CONFERENCE CALL
The Company will conduct a conference call/webcast at 1:30 PM Eastern Daylight Time on Thursday, January 28, 2021 to discuss the results for the quarter, business highlights and outlook. A copy of the Earnings Presentation is available on the Company’s website, www.brooklinebancorp.com. To listen to the call and view the Company’s Earnings Presentation, please join the call via https://services.choruscall.com/links/brkl210128.html. To listen to the call without access to the slides, please dial 877-504-4120 (United States) or 412-902-6650 (international) and ask for the Brookline Bancorp, Inc. call. A recording of the call will be available for one week following the call on the Company’s website under “Investor Relations” or by dialing 877-344-7529 (United States) or 412-317-0088 (internationally) and entering the passcode: 10151088.
ABOUT BROOKLINE BANCORP, INC.
Brookline Bancorp, Inc., a bank holding company with $8.9 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 and Bank Rhode Island (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 and www.bankri.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. Statements contained in this press release that do not describe historical or current facts are forward-looking statements, including statements regard the potential effects of COVID-19 on the Company’s business, credit quality, financial condition, liquidity and results of operations. Forward-looking statements made with regard to the potential effects of COVID-19 on the Company’s business, financial condition, credit quality, liquidity and results of operation may differ, possibly materially, from what is included in this press release due to factors and future developments that are uncertain and beyond the scope of the Company’s control. These included, but are not limited to, the length and extent of the economic contraction as a result of the COVID-19 pandemic; continued deterioration in employment levels, general business and economic conditions on a national basis and in the local markets in which the Company and its banking subsidiaries operate; changes in consumer behavior due to changing political business and economic conditions or legislative or regulatory initiatives; the possibility that future credit losses may be higher than currently expected; reputational risk relating to the Company’s participation in the Paycheck Protection Program and other pandemic-related legislative and regulatory initiatives and programs; and turbulence in capital and debt markets. Forward-looking statements involve risks and uncertainties which are difficult to predict. 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 operating earnings, operating return on average assets, operating return on average tangible assets, operating return on average stockholders' equity, operating return on average tangible stockholders' equity, tangible book value per common share, tangible stockholders’ equity to tangible assets, return on average tangible assets (annualized) and return on average tangible stockholders' equity (annualized). 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.
INVESTOR RELATIONS:
Contact:
Carl M. Carlson
Brookline Bancorp, Inc.
Chief Financial Officer
(617) 425-5331
ccarlson@brkl.comBROOKLINE BANCORP, INC. AND SUBSIDIARIES Selected Financial Highlights (Unaudited) At and for the Three Months Ended At and for the Twelve Months Ended December 31, 2020 September 30, 2020 June 30, 2020 March 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 (Dollars In Thousands Except per Share Data) Earnings Data: Net interest income $ 68,225 $ 65,938 $ 64,288 $ 61,712 $ 63,931 $ 260,163 $ 253,300 (Credit) provision for credit losses (2,103 ) 4,528 5,347 54,114 3,602 61,886 9,583 Non-interest income 4,219 4,862 6,235 9,328 7,756 24,644 29,793 Non-interest expense 40,038 40,947 39,109 40,748 38,815 160,844 157,481 Income (loss) before provision for income taxes 34,509 25,325 26,067 (23,822 ) 29,270 62,077 116,029 Net income (loss) attributable to Brookline Bancorp, Inc. 26,663 18,679 19,571 (17,276 ) 22,183 47,635 87,717 Performance Ratios: Net interest margin (1) 3.23 % 3.08 % 3.09 % 3.31 % 3.43 % 3.17 % 3.51 % Interest-rate spread (1) 3.03 % 2.85 % 2.75 % 2.91 % 3.05 % 2.88 % 3.10 % Return on average assets (annualized) 1.20 % 0.83 % 0.88 % (0.87 )% 1.13 % 0.55 % 1.15 % Return on average tangible assets (annualized) (non-GAAP) 1.22 % 0.84 % 0.90 % (0.89 )% 1.15 % 0.56 % 1.17 % Return on average stockholders' equity (annualized) 11.38 % 7.99 % 8.45 % (7.30 )% 9.42 % 5.09 % 9.56 % Return on average tangible stockholders' equity (annualized) (non-GAAP) 13.79 % 9.70 % 10.28 % (8.84 )% 11.42 % 6.17 % 11.67 % Efficiency ratio (2) 55.27 % 57.83 % 55.46 % 57.36 % 54.15 % 56.47 % 55.63 % Per Common Share Data: Net income (loss) — Basic $ 0.34 $ 0.24 $ 0.25 $ (0.22 ) $ 0.28 $ 0.60 $ 1.10 Net income (loss) — Diluted 0.34 0.24 0.25 (0.22 ) 0.28 0.60 1.10 Cash dividends declared 0.115 0.115 0.115 0.115 0.115 0.460 0.450 Book value per share (end of period) 12.05 11.84 11.75 11.57 11.87 12.05 11.87 Tangible book value per share (end of period) (non-GAAP) 9.96 9.77 9.67 9.49 9.80 9.96 9.80 Stock price (end of period) 12.04 8.65 10.08 11.28 16.46 12.04 16.46 Balance Sheet: Total assets $ 8,942,424 $ 9,000,192 $ 9,069,667 $ 8,461,591 $ 7,856,853 $ 8,942,424 $ 7,856,853 Total loans and leases 7,269,553 7,396,358 7,407,697 6,822,527 6,737,816 7,269,553 6,737,816 Total deposits 6,910,696 6,792,523 6,440,233 5,889,938 5,830,072 6,910,696 5,830,072 Brookline Bancorp, Inc. stockholders’ equity 941,778 935,558 926,413 912,568 945,606 941,778 945,606 Asset Quality: Nonperforming assets $ 44,963 $ 39,365 $ 42,754 $ 41,122 $ 22,092 $ 44,963 $ 22,092 Nonperforming assets as a percentage of total assets 0.50 % 0.44 % 0.47 % 0.49 % 0.28 % 0.50 % 0.28 % Allowance for loan and lease losses $ 114,379 $ 119,971 $ 119,553 $ 113,181 $ 61,082 $ 114,379 $ 61,082 Allowance for loan and lease losses as a percentage of total loans and leases 1.57 % 1.62 % 1.61 % 1.66 % 0.91 % 1.57 % 0.91 % Net loan and lease charge-offs $ 4,381 $ 4,963 $ 1,383 $ 2,234 $ 1,622 $ 12,961 $ 7,171 Net loan and lease charge-offs as a percentage of average loans and leases (annualized) 0.24 % 0.27 % 0.08 % 0.13 % 0.10 % 0.18 % 0.11 % Capital Ratios: Stockholders’ equity to total assets 10.53 % 10.39 % 10.21 % 10.78 % 12.04 % 10.53 % 12.04 % Tangible stockholders’ equity to tangible assets (non-GAAP) 8.86 % 8.73 % 8.56 % 9.02 % 10.15 % 8.86 % 10.15 % (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) December 31, 2020 September 30, 2020 June 30, 2020 March 31, 2020 December 31, 2019 ASSETS (In Thousands Except Share Data) Cash and due from banks $ 36,069 $ 33,818 $ 38,522 $ 86,996 $ 33,589 Short-term investments 398,848 283,515 216,394 253,772 44,201 Total cash and cash equivalents 434,917 317,333 254,916 340,768 77,790 Investment securities available-for-sale 745,822 783,867 854,505 761,539 498,995 Investment securities held-to-maturity - - - - 86,780 Equity securities held-for-trading 526 525 1,992 2,558 3,581 Total investment securities 746,348 784,392 856,497 764,097 589,356 Loans and leases: Commercial real estate loans 3,823,826 3,835,372 3,837,703 3,762,158 3,669,222 Commercial loans and leases 2,274,899 2,354,613 2,361,463 1,826,866 1,838,748 Consumer loans 1,170,828 1,206,373 1,208,531 1,233,503 1,229,846 Total loans and leases 7,269,553 7,396,358 7,407,697 6,822,527 6,737,816 Allowance for loan and lease losses (114,379 ) (119,971 ) (119,553 ) (113,181 ) (61,082 ) Net loans and leases 7,155,174 7,276,387 7,288,144 6,709,346 6,676,734 Restricted equity securities 49,786 61,715 71,638 68,472 53,818 Premises and equipment, net of accumulated depreciation 71,568 72,441 73,127 73,786 74,350 Right-of-use asset operating leases 24,143 23,492 24,343 24,789 24,876 Deferred tax asset 40,129 42,269 42,683 38,141 25,017 Goodwill 160,427 160,427 160,427 160,427 160,427 Identified intangible assets, net of accumulated amortization 3,152 3,464 3,775 4,087 4,423 Other real estate owned and repossessed assets 6,515 1,413 1,454 2,038 2,631 Other assets 250,265 256,859 292,663 275,640 167,431 Total assets $ 8,942,424 $ 9,000,192 $ 9,069,667 $ 8,461,591 $ 7,856,853 LIABILITIES AND STOCKHOLDERS' EQUITY Deposits: Demand checking accounts $ 1,592,205 $ 1,550,267 $ 1,603,037 $ 1,175,329 $ 1,141,578 NOW accounts 513,948 459,902 417,622 361,854 371,380 Savings accounts 701,659 716,630 657,758 653,026 613,467 Money market accounts 2,018,977 1,878,258 1,809,868 1,676,092 1,682,005 Certificate of deposit accounts 1,389,998 1,492,913 1,601,768 1,669,509 1,671,738 Brokered deposit accounts 693,909 694,553 350,180 354,128 349,904 Total deposits 6,910,696 6,792,523 6,440,233 5,889,938 5,830,072 Borrowed funds: Advances from the FHLBB 648,849 841,169 1,267,570 1,137,431 758,469 Subordinated debentures and notes 83,746 83,707 83,668 83,630 83,591 Other borrowed funds 87,652 80,169 55,431 70,743 60,689 Total borrowed funds 820,247 1,005,045 1,406,669 1,291,804 902,749 Operating lease liabilities 24,143 23,492 24,343 24,789 24,876 Mortgagors’ escrow accounts 5,901 6,429 6,467 7,441 7,232 Reserve for unfunded credits 13,071 13,964 14,816 17,222 1,880 Accrued expenses and other liabilities 226,588 223,181 250,726 317,829 144,438 Total liabilities 8,000,646 8,064,634 8,143,254 7,549,023 6,911,247 Stockholders' equity: Brookline Bancorp, Inc. stockholders’ equity Common stock, $0.01 par value; 200,000,000 shares authorized; 85,177,172 shares issued, 85,177,172 shares issued, 85,177,172 shares issued, 85,177,172 shares issued, and 85,177,172 shares issued, respectively 852 852 852 852 852 Additional paid-in capital 737,178 736,294 738,155 737,422 736,601 Retained earnings, partially restricted 264,892 247,336 237,808 227,359 265,376 Accumulated other comprehensive income 16,490 18,782 19,538 16,947 2,283 Treasury stock, at cost; 6,525,783 shares, 5,629,854 shares, 5,859,708 shares, 5,862,811 shares, and 5,003,127 shares, respectively (77,343 ) (67,376 ) (69,572 ) (69,617 ) (59,073 ) Unallocated common stock held by the Employee Stock Ownership Plan; 51,114 shares, 58,227 shares, 65,334 shares, 72,441 shares, and 79,548 shares, respectively (291 ) (330 ) (368 ) (395 ) (433 ) Total stockholders' equity 941,778 935,558 926,413 912,568 945,606 Total liabilities and stockholders' equity $ 8,942,424 $ 9,000,192 $ 9,069,667 $ 8,461,591 $ 7,856,853 BROOKLINE BANCORP, INC. AND SUBSIDIARIES Consolidated Statements of Income (Unaudited) Three Months Ended December 31, 2020 September 30, 2020 June 30, 2020 March 31, 2020 December 31, 2019 (In Thousands Except Share Data) Interest and dividend income: Loans and leases $ 76,583 $ 76,240 $ 77,416 $ 79,559 $ 83,309 Debt securities 3,335 3,746 3,701 2,976 2,910 Marketable and restricted equity securities 490 672 908 778 813 Short-term investments 59 46 99 209 418 Total interest and dividend income 80,467 80,704 82,124 83,522 87,450 Interest expense: Deposits 8,825 10,583 12,778 16,240 17,655 Borrowed funds 3,417 4,183 5,058 5,570 5,864 Total interest expense 12,242 14,766 17,836 21,810 23,519 Net interest income 68,225 65,938 64,288 61,712 63,931 (Credit) provision for credit losses (2,103 ) 4,528 5,347 54,114 3,602 Net interest income after (credit) provision for credit losses 70,328 61,410 58,941 7,598 60,329 Non-interest income: Deposit fees 2,358 2,305 1,929 2,458 2,710 Loan fees 588 397 513 550 567 Loan level derivative income, net 145 527 1,440 2,156 2,494 Gain on investment securities, net - 54 586 1,330 133 Gain on sales of loans and leases held-for-sale 67 632 299 120 309 Other 1,061 947 1,468 2,714 1,543 Total non-interest income 4,219 4,862 6,235 9,328 7,756 Non-interest expense: Compensation and employee benefits 25,054 26,092 24,619 25,219 23,987 Occupancy 3,806 3,802 3,825 3,953 4,102 Equipment and data processing 4,193 4,293 4,155 4,703 4,601 Professional services 1,338 1,112 1,056 1,651 1,120 FDIC insurance 1,630 1,363 858 378 53 Advertising and marketing 1,010 1,024 1,017 1,075 828 Amortization of identified intangible assets 312 312 311 336 420 Other 2,695 2,949 3,268 3,433 3,704 Total non-interest expense 40,038 40,947 39,109 40,748 38,815 Income (loss) before provision for income taxes 34,509 25,325 26,067 (23,822 ) 29,270 Provision (benefit) for income taxes 7,846 6,646 6,496 (6,546 ) 7,087 Net income (loss) attributable to Brookline Bancorp, Inc. $ 26,663 $ 18,679 $ 19,571 $ (17,276 ) $ 22,183 Earnings per common share: Basic 0.34 0.24 0.25 (0.22 ) 0.28 Diluted 0.34 0.24 0.25 (0.22 ) 0.28 Weighted average common shares outstanding during the period: Basic 78,533,351 78,948,139 78,849,282 79,481,462 79,682,724 Diluted 78,680,873 79,055,901 79,015,274 79,665,774 79,845,447 Dividends paid per common share $ 0.115 $ 0.115 $ 0.115 $ 0.115 $ 0.115 BROOKLINE BANCORP, INC. AND SUBSIDIARIES Consolidated Statements of Income (Unaudited) Twelve Months Ended December 31, 2020 2019 (In Thousands Except Share Data) Interest and dividend income: Loans and leases $ 309,798 $ 330,345 Debt securities 13,758 12,281 Marketable and restricted equity securities 2,848 3,477 Short-term investments 413 1,523 Total interest and dividend income 326,817 347,626 Interest expense: Deposits 48,426 69,615 Borrowed funds 18,228 24,711 Total interest expense 66,654 94,326 Net interest income 260,163 253,300 Provision for credit losses 61,886 9,583 Net interest income after provision for credit losses 198,277 243,717 Non-interest income: Deposit fees 9,050 10,623 Loan fees 2,048 2,097 Loan level derivative income, net 4,268 8,262 Gain on investment securities, net 1,970 508 Gain on sales of loans and leases held-for-sale 1,118 1,709 Other 6,190 6,594 Total non-interest income 24,644 29,793 Non-interest expense: Compensation and employee benefits 100,985 96,554 Occupancy 15,386 15,696 Equipment and data processing 17,345 18,652 Professional services 5,157 4,366 FDIC insurance 4,229 1,445 Advertising and marketing 4,126 4,044 Amortization of identified intangible assets 1,271 1,663 Merger and restructuring expense - 1,125 Other 12,345 13,936 Total non-interest expense 160,844 157,481 Income before provision for income taxes 62,077 116,029 Provision for income taxes 14,442 28,269 Net income before noncontrolling interest in subsidiary 47,635 87,760 Less net income attributable to noncontrolling interest in subsidiary - 43 Net income attributable to Brookline Bancorp, Inc. $ 47,635 $ 87,717 Earnings per common share: Basic $ 0.60 $ 1.10 Diluted $ 0.60 $ 1.10 Weighted average common shares outstanding during the period: Basic 78,951,892 79,679,781 Diluted 79,103,289 79,856,921 Dividends paid per common share $ 0.460 $ 0.440 BROOKLINE BANCORP, INC. AND SUBSIDIARIES Asset Quality Analysis (Unaudited) At and for the Three Months Ended December 31, 2020 September 30, 2020 June 30, 2020 March 31, 2020 December 31, 2019 (Dollars in Thousands) NONPERFORMING ASSETS: Loans and leases accounted for on a nonaccrual basis: Commercial real estate mortgage $ 3,300 $ 10,841 $ 10,139 $ 10,937 $ 2,845 Multi-family mortgage - - - 85 84 Construction 3,853 - - - - Total commercial real estate loans 7,153 10,841 10,139 11,022 2,929 Commercial 7,702 7,751 12,427 12,991 4,909 Equipment financing 16,757 13,372 13,100 10,356 9,822 Condominium association 112 117 190 203 151 Total commercial loans and leases 24,571 21,240 25,717 23,550 14,882 Residential mortgage 5,587 4,634 4,157 3,446 753 Home equity 1,136 1,235 1,278 1,059 896 Other consumer 1 2 9 7 1 Total consumer loans 6,724 5,871 5,444 4,512 1,650 Total nonaccrual loans and leases 38,448 37,952 41,300 39,084 19,461 Other real estate owned 5,415 - - - - Other repossessed assets 1,100 1,413 1,454 2,038 2,631 Total nonperforming assets $ 44,963 $ 39,365 $ 42,754 $ 41,122 $ 22,092 Loans and leases past due greater than 90 days and still accruing $ 11,975 $ 1,180 $ 1,974 $ 1,045 $ 10,109 Troubled debt restructurings on accrual 11,483 11,309 10,172 16,480 17,076 Troubled debt restructurings on nonaccrual 7,476 5,742 5,972 5,819 6,104 Total troubled debt restructurings $ 18,959 $ 17,051 $ 16,144 $ 22,299 $ 23,180 Nonperforming loans and leases as a percentage of total loans and leases 0.53 % 0.51 % 0.56 % 0.57 % 0.29 % Nonperforming assets as a percentage of total assets 0.50 % 0.44 % 0.47 % 0.49 % 0.28 % PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES: Allowance for loan and lease losses at beginning of period $ 119,971 $ 119,553 $ 113,181 $ 61,082 $ 59,135 CECL adjustment to retained earnings - - - 6,632 - Charge-offs (4,810 ) (5,511 ) (1,803 ) (2,539 ) (1,894 ) Recoveries 429 548 420 305 272 Net charge-offs (4,381 ) (4,963 ) (1,383 ) (2,234 ) (1,622 ) (Credit) provision for loan and lease losses excluding unfunded commitments * (1,211 ) 5,381 7,755 47,701 3,569 Allowance for loan and lease losses at end of period $ 114,379 $ 119,971 $ 119,553 $ 113,181 $ 61,082 Allowance for loan and lease losses as a percentage of total loans and leases 1.57 % 1.62 % 1.61 % 1.66 % 0.91 % NET CHARGE-OFFS: Commercial real estate loans $ 3,444 $ 70 $ (94 ) $ - $ - Commercial loans and leases 1,011 4,917 1,498 2,280 1,589 Consumer loans (74 ) (24 ) (21 ) (46 ) 33 Total net charge-offs $ 4,381 $ 4,963 $ 1,383 $ 2,234 $ 1,622 Net loan and lease charge-offs as a percentage of average loans and leases (annualized) 0.24 % 0.27 % 0.08 % 0.13 % 0.10 % *provision for loan and lease losses does not include (credit) provision of $(0.9) million, $(0.9) million, $2.4 million and $6.4 million for credit losses on unfunded commitments during the three months ended December 31, 2020, September 30, 2020, June 30, 2020 and March 31, 2020, respectively. BROOKLINE BANCORP, INC. AND SUBSIDIARIES Average Yields / Costs (Unaudited) Three Months Ended December 31, 2020 September 30, 2020 December 31, 2019
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Cost(Dollars in Thousands) Assets: Interest-earning assets: Investments: Debt securities (2) $ 770,414 $ 3,334 1.73 % $ 851,608 $ 3,746 1.76 % $ 567,037 $ 2,957 2.09 % Marketable and restricted equity securities (2) 51,469 491 3.81 % 66,154 670 4.06 % 59,763 823 5.51 % Short-term investments 223,665 59 0.10 % 192,446 46 0.10 % 93,997 418 1.78 % Total investments 1,045,548 3,884 1.49 % 1,110,208 4,462 1.61 % 720,797 4,198 2.33 % Loans and Leases: Commercial real estate loans (3) 3,833,172 35,526 3.63 % 3,831,826 35,615 3.64 % 3,605,169 40,976 4.45 % Commercial loans (3) 1,260,883 11,936 3.71 % 1,281,202 10,677 3.27 % 826,116 10,066 4.78 % Equipment financing (3) 1,086,855 18,626 6.86 % 1,089,058 19,018 6.99 % 1,037,431 19,271 7.43 % Residential mortgage loans (3) 803,884 7,530 3.75 % 814,559 7,860 3.86 % 804,672 8,402 4.18 % Other consumer loans (3) 385,818 3,020 3.10 % 395,990 3,127 3.13 % 417,950 4,680 4.43 % Total loans and leases 7,370,612 76,638 4.16 % 7,412,635 76,297 4.12 % 6,691,338 83,395 4.99 % Total interest-earning assets 8,416,160 80,522 3.83 % 8,522,843 80,759 3.79 % 7,412,135 87,593 4.73 % Non-interest-earning assets 458,307 495,829 448,458 Total assets $ 8,874,467 $ 9,018,672 $ 7,860,593 Liabilities and Stockholders' Equity: Interest-bearing liabilities: Deposits: NOW accounts $ 451,014 126 0.11 % $ 427,009 128 0.12 % $ 344,036 115 0.13 % Savings accounts 701,378 245 0.14 % 688,223 258 0.15 % 604,276 746 0.49 % Money market accounts 1,947,686 1,546 0.32 % 1,855,803 1,658 0.36 % 1,685,885 4,947 1.16 % Certificates of deposit 1,452,867 5,718 1.57 % 1,536,969 7,022 1.82 % 1,681,844 9,725 2.29 % Brokered deposit accounts 746,281 1,190 0.63 % 562,112 1,517 1.07 % 344,909 2,122 2.44 % Total interest-bearing deposits 5,299,226 8,825 0.66 % 5,070,116 10,583 0.83 % 4,660,950 17,655 1.50 % Borrowings: Advances from the FHLBB 619,844 2,118 1.34 % 944,865 2,876 1.19 % 753,460 4,407 2.29 % Subordinated debentures and notes 83,725 1,245 5.95 % 83,687 1,246 5.96 % 83,570 1,293 6.19 % Other borrowed funds 81,320 54 0.26 % 118,969 61 0.21 % 64,543 164 1.01 % Total borrowings 784,889 3,417 1.70 % 1,147,521 4,183 1.43 % 901,573 5,864 2.55 % Total interest-bearing liabilities 6,084,115 12,242 0.80 % 6,217,637 14,766 0.94 % 5,562,523 23,519 1.68 % Non-interest-bearing liabilities: Demand checking accounts 1,587,618 1,569,411 1,142,600 Other non-interest-bearing liabilities 265,440 296,992 213,579 Total liabilities 7,937,173 8,084,040 6,918,702 Stockholders’ equity 937,294 934,632 941,891 Total liabilities and equity $ 8,874,467 $ 9,018,672 $ 7,860,593 Net interest income (tax-equivalent basis) /Interest-rate spread (4) 68,280 3.03 % 65,993 2.85 % 64,074 3.05 % Less adjustment of tax-exempt income 55 55 143 Net interest income $ 68,225 $ 65,938 $ 63,931 Net interest margin (5) 3.23 % 3.08 % 3.43 % (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. BROOKLINE BANCORP, INC. AND SUBSIDIARIES Average Yields / Costs (Unaudited) Twelve Months Ended December 31, 2020 December 31, 2019
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Cost(Dollars in Thousands) Assets: Interest-earning assets: Investments: Debt securities (2) $ 750,689 $ 13,823 1.84 % $ 585,360 $ 12,483 2.13 % Marketable and restricted equity securities (2) 61,873 2,862 4.63 % 59,751 3,516 5.88 % Short-term investments 186,617 413 0.22 % 71,090 1,523 2.14 % Total investments 999,179 17,098 1.71 % 716,201 17,522 2.45 % Loans and Leases: Commercial real estate loans (3) 3,781,201 148,438 3.86 % 3,492,848 164,082 4.63 % Commercial loans (3) 1,140,699 41,391 3.57 % 817,347 39,839 4.81 % Equipment financing (3) 1,074,561 75,563 7.03 % 1,012,698 74,066 7.31 % Residential mortgage loans (3) 810,855 31,392 3.87 % 783,556 32,926 4.20 % Other consumer loans (3) 402,672 13,255 3.28 % 414,730 19,835 4.78 % Total loans and leases 7,209,988 310,039 4.30 % 6,521,179 330,748 5.07 % Total interest-earning assets 8,209,167 327,137 3.99 % 7,237,380 348,270 4.81 % Non-interest-earning assets 474,402 417,254 Total assets $ 8,683,569 $ 7,654,634 Liabilities and Stockholders' Equity: Interest-bearing liabilities: Deposits: NOW accounts $ 408,374 484 0.12 % $ 339,275 436 0.13 % Savings accounts 670,217 1,503 0.22 % 608,022 2,900 0.48 % Money market accounts 1,817,085 9,519 0.52 % 1,682,676 21,206 1.26 % Certificates of deposit 1,577,104 30,355 1.92 % 1,611,389 36,326 2.25 % Brokered deposit accounts 512,803 6,565 1.28 % 344,961 8,747 2.54 % Total interest-bearing deposits 4,985,583 48,426 0.97 % 4,586,323 69,615 1.52 % Borrowings: Advances from the FHLBB 859,389 12,842 1.47 % 757,598 18,701 2.43 % Subordinated debentures and notes 83,667 5,038 6.02 % 83,511 5,206 6.23 % Other borrowed funds 90,587 348 0.38 % 79,276 804 1.01 % Total borrowings 1,033,643 18,228 1.73 % 920,385 24,711 2.65 % Total interest-bearing liabilities 6,019,226 66,654 1.11 % 5,506,708 94,326 1.71 % Non-interest-bearing liabilities: Demand checking accounts 1,451,556 1,070,859 Other non-interest-bearing liabilities 276,712 159,690 Total liabilities 7,747,494 6,737,257 Brookline Bancorp, Inc. stockholders’ equity 936,075 917,286 Noncontrolling interest in subsidiary - 91 Total liabilities and equity $ 8,683,569 $ 7,654,634 Net interest income (tax-equivalent basis) /Interest-rate spread (4) 260,483 2.88 % 253,944 3.10 % Less adjustment of tax-exempt income 320 644 Net interest income $ 260,163 $ 253,300 Net interest margin (5) 3.17 % 3.51 % (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. BROOKLINE BANCORP, INC. AND SUBSIDIARIES Non-GAAP Financial Information (Unaudited) At and for the Three Months Ended
December 31,At and for the Twelve Months Ended
December 31,2020 2019 2020 2019 Reconciliation Table - Non-GAAP Financial Information (Dollars in Thousands Except Share Data) Net income attributable to Brookline Bancorp, Inc. $ 26,663 $ 22,183 $ 47,635 $ 87,717 Less: Security gains (after-tax) - 101 1,511 384 Add: Merger and restructuring-related expenses (after-tax) - - - 851 Operating earnings $ 26,663 $ 22,082 $ 46,124 $ 88,184 Operating earnings per common share: Basic $ 0.34 $ 0.28 $ 0.58 $ 1.11 Diluted 0.34 0.28 0.58 1.10 Weighted average common shares outstanding during the period: Basic 78,533,351 79,682,724 78,951,892 79,679,781 Diluted 78,680,873 79,845,447 79,103,289 79,856,921 Return on average assets * 1.20 % 1.13 % 0.55 % 1.15 % Less: Security gains (after-tax) * - % 0.01 % 0.02 % 0.01 % Add: Merger and restructuring-related expenses (after-tax) * - % - % - % 0.01 % Operating return on average assets * 1.20 % 1.12 % 0.53 % 1.15 % Return on average tangible assets * 1.22 % 1.15 % 0.56 % 1.17 % Less: Security gains (after-tax) * - % 0.01 % 0.02 % 0.01 % Add: Merger and restructuring-related expenses (after-tax) * - % - % - % 0.01 % Operating return on average tangible assets * 1.22 % 1.14 % 0.54 % 1.17 % Return on average stockholders' equity * 11.38 % 9.42 % 5.09 % 9.56 % Less: Security gains (after-tax) * - % 0.04 % 0.16 % 0.04 % Add: Merger and restructuring-related expenses (after-tax) * - % - % - % 0.09 % Operating return on average stockholders' equity * 11.38 % 9.38 % 4.93 % 9.61 % Return on average tangible stockholders' equity * 13.79 % 11.42 % 6.17 % 11.67 % Less: Security gains (after-tax) * - % 0.05 % 0.20 % 0.05 % Add: Merger and restructuring-related expenses (after-tax) * - % - % - % 0.11 % Operating return on average tangible stockholders' equity * 13.79 % 11.37 % 5.97 % 11.73 % * Ratios at and for the three months ended are annualized. BROOKLINE BANCORP, INC. AND SUBSIDIARIES Non-GAAP Financial Information (Unaudited) At and for the Three Months Ended At and for the Twelve Months Ended December 31,
2020September 30,
2020June 30,
2020March 31,
2020December 31,
2019December 31,
2020December 31,
2019(Dollars in Thousands) Net income (loss), as reported $ 26,663 $ 18,679 $ 19,571 $ (17,276 ) $ 22,183 $ 47,635 $ 87,717 Average total assets $ 8,874,467 $ 9,018,672 $ 8,869,540 $ 7,965,826 $ 7,860,593 $ 8,683,569 $ 7,654,634 Less: Average goodwill and average identified intangible assets, net 163,758 164,072 164,385 164,701 165,071 164,227 165,697 Average tangible assets $ 8,710,709 $ 8,854,600 $ 8,705,155 $ 7,801,125 $ 7,695,522 $ 8,519,342 $ 7,488,937 Return on average tangible assets (annualized) 1.22 % 0.84 % 0.90 % (0.89 )% 1.15 % 0.56 % 1.17 % Average total stockholders’ equity $ 937,294 $ 934,632 $ 926,239 $ 946,138 $ 941,891 $ 936,075 $ 917,286 Less: Average goodwill and average identified intangible assets, net 163,758 164,072 164,385 164,701 165,071 164,227 165,697 Average tangible stockholders’ equity $ 773,536 $ 770,560 $ 761,854 $ 781,437 $ 776,820 $ 771,848 $ 751,589 Return on average tangible stockholders’ equity (annualized) 13.79 % 9.70 % 10.28 % (8.84 )% 11.42 % 6.17 % 11.67 % Brookline Bancorp, Inc. stockholders’ equity $ 941,778 $ 935,558 $ 926,413 $ 912,568 $ 945,606 $ 941,778 $ 945,606 Less: Goodwill 160,427 160,427 160,427 160,427 160,427 160,427 160,427 Identified intangible assets, net 3,152 3,464 3,775 4,087 4,423 3,152 4,423 Tangible stockholders' equity $ 778,199 $ 771,667 $ 762,211 $ 748,054 $ 780,756 $ 778,199 $ 780,756 Total assets $ 8,942,424 $ 9,000,192 $ 9,069,667 $ 8,461,591 $ 7,856,853 $ 8,942,424 $ 7,856,853 Less: Goodwill 160,427 160,427 160,427 160,427 160,427 160,427 160,427 Identified intangible assets, net 3,152 3,464 3,775 4,087 4,423 3,152 4,423 Tangible assets $ 8,778,845 $ 8,836,301 $ 8,905,465 $ 8,297,077 $ 7,692,003 $ 8,778,845 $ 7,692,003 Tangible stockholders’ equity to tangible assets 8.86 % 8.73 % 8.56 % 9.02 % 10.15 % 8.86 % 10.15 % Tangible stockholders' equity $ 778,199 $ 771,667 $ 762,211 $ 748,054 $ 780,756 $ 778,199 $ 780,756 Number of common shares issued 85,177,172 85,177,172 85,177,172 85,177,172 85,177,172 85,177,172 85,177,172 Less: Treasury shares 6,525,783 5,629,854 5,859,708 5,862,811 5,003,127 6,525,783 5,003,127 Unallocated ESOP shares 51,114 58,227 65,334 72,441 79,548 51,114 79,548 Unvested restricted shares 458,800 487,318 398,188 395,085 406,450 458,800 406,450 Number of common shares outstanding 78,141,475 79,001,773 78,853,942 78,846,835 79,688,047 78,141,475 79,688,047 Tangible book value per common share $ 9.96 $ 9.77 $ 9.67 $ 9.49 $ 9.80 $ 9.96 $ 9.80 Allowance for loan and lease losses $ 114,379 $ 119,971 $ 119,553 $ 113,181 $ 61,082 $ 114,379 $ 61,082 Total loans and leases $ 7,269,553 $ 7,396,358 $ 7,407,697 $ 6,822,527 $ 6,737,816 $ 7,269,553 $ 6,737,816 Less: Total PPP loans 489,216 568,383 565,768 - - 489,216 - Total loans and leases excluding PPP loans $ 6,780,337 $ 6,827,975 $ 6,841,929 $ 6,822,527 $ 6,737,816 $ 6,780,337 $ 6,737,816 Allowance for loan and lease losses as a percentage of total loans and leases less PPP loans 1.69 % 1.76 % 1.75 % 1.66 % 0.91 % 1.69 % 0.91 % PDF available: http://ml.globenewswire.com/Resource/Download/e76ed2c8-cf10-4556-a6fa-1c6f41314184