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Brookline Bancorp Announces Third Quarter Results
来源: Nasdaq GlobeNewswire / 27 10月 2021 15:05:02 America/Chicago
Net Income of $28.8 million, EPS of $0.37
Quarterly Dividend Increase of 4.2%
BOSTON, Oct. 27, 2021 (GLOBE NEWSWIRE) -- Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced net income of $28.8 million, or $0.37 per basic and diluted share, for the third quarter of 2021, compared to net income of $31.6 million, or $0.40 per basic and diluted share, for the second quarter of 2021, and net income of $18.7 million, or $0.24 per basic and diluted share, for the third quarter of 2020.
Paul Perrault, Chairman and Chief Executive Officer of the Company commented on the third quarter earnings, “I am pleased to report solid earnings for the third quarter of $28.8 million or $0.37 per share as the economy in our markets continues to improve.” Perrault continued, “Our employees have remained focused on providing exceptional customer service to our customers and communities throughout 2021 which has positioned us well as we look forward to the end of the year.”
BALANCE SHEET
Total assets at September 30, 2021 decreased $149.3 million to $8.3 billion from $8.5 billion at June 30, 2021, and decreased $687.5 million from $9.0 billion at September 30, 2020. At September 30, 2021, total loans and leases were $6.9 billion, representing a decrease of $88.6 million from June 30, 2021, and a decrease of $464.7 million from September 30, 2020.
The Company funded a total of 4,700 of SBA Paycheck Protection Program ("PPP") loans in the aggregate amount of $872.1 million. As of September 30, 2021, $160.6 million in PPP loans remain outstanding, net of deferred fees and costs of $5.4 million. Excluding PPP loan activity, the core loan portfolio grew $99.2 million in the third quarter compared to growth of $9.1 million in the second quarter.
Total investment securities at September 30, 2021 increased $37.9 million to $732.0 million from $694.2 million at June 30, 2021, and decreased $52.4 million from $784.4 million at September 30, 2020. Total cash and cash equivalents at September 30, 2021 decreased $81.3 million to $239.1 million from $320.4 million at June 30, 2021, and decreased $78.2 million from $317.3 million at September 30, 2020. As of September 30, 2021, total investment securities and total cash and cash equivalents represented 11.7 percent of total assets as compared to 12.0 percent and 12.2 percent as of June 30, 2021 and September 30, 2020, respectively.
Total deposits at September 30, 2021 decreased $21.7 million to $6.87 billion from $6.89 billion at June 30, 2021, and increased $80.5 million from $6.8 billion at September 30, 2020.
Total borrowed funds at September 30, 2021 decreased $95.5 million to $267.5 million from $363.0 million at June 30, 2021, and decreased $737.5 million from $1.0 billion at September 30, 2020.
The ratio of stockholders’ equity to total assets was 11.77 percent at September 30, 2021, as compared to 11.49 percent at June 30, 2021, and 10.39 percent at September 30, 2020. The ratio of tangible stockholders’ equity to tangible assets (non-GAAP) was 10.01 percent at September 30, 2021, as compared to 9.75 percent at June 30, 2021, and 8.73 percent at September 30, 2020. Tangible book value per share (non-GAAP) increased $0.16 from $10.35 at June 30, 2021 to $10.51 at September 30, 2021, compared to $9.77 at September 30, 2020.
NET INTEREST INCOME
Net interest income decreased $0.4 million to $70.7 million for the third quarter of 2021 from $71.1 million at the quarter ended June 30, 2021. The net interest margin increased 1 basis point to 3.53 percent for the three months ended September 30, 2021 from 3.52 percent for the three months ended June 30, 2021.
NON-INTEREST INCOME
Total non-interest income for the quarter ended September 30, 2021 decreased $0.3 million to $5.6 million from $5.9 million for the quarter ended June 30, 2021. The decrease was primarily driven by a decrease of $0.4 million in deposit fees and a decrease of $0.1 million in loan fees, partially offset by an increase of $0.2 million in loan level derivative income, net.
PROVISION FOR CREDIT LOSSES
The Company recorded a negative provision for credit losses of $3.1 million for the quarter ended September 30, 2021, compared to a negative provision for credit losses of $3.3 million for the quarter ended June 30, 2021. Total net charge-offs for the third quarter of 2021 were $1.3 million compared to $0.6 million in the second quarter of 2021. The increase was primarily driven by an increase in charge-offs on equipment financing and commercial loans for $0.2 million and $0.2 million, respectively, along with a decrease in recoveries on equipment financing and home equity loans for $0.2 million and $0.1 million, respectively. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis increased to 7 basis points for the third quarter of 2021 from 3 basis points for the second quarter of 2021.
The allowance for loan and lease losses represented 1.48 percent of total loans and leases at September 30, 2021, compared to 1.52 percent at June 30, 2021, and 1.62 percent at September 30, 2020. Excluding PPP loans, the allowance for loan and lease losses represented 1.51 percent of total loans and leases at September 30, 2021 compared to 1.60 percent at June 30, 2021, and 1.76 percent at September 30, 2020.
ASSET QUALITY
The ratio of nonperforming loans and leases to total loans and leases was 0.52 percent at September 30, 2021, an increase from 0.49 percent at June 30, 2021. Total nonaccrual loans and leases increased $1.7 million to $35.9 million at September 30, 2021 from $34.2 million at June 30, 2021. The ratio of nonperforming assets to total assets was 0.44 percent at September 30, 2021, an increase from 0.41 percent at June 30, 2021. Total nonperforming assets increased $1.9 million to $36.5 million at September 30, 2021 from $34.6 million at June 30, 2021.
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, 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 September 30, 2021, approximately 94 percent of loans granted an initial loan payment deferral have returned to payment status and 77 credits totaling $55.7 million, or 0.8 percent of total loans outstanding, are operating under modified terms.
NON-INTEREST EXPENSE
Non-interest expense for the quarter ended September 30, 2021 increased $2.9 million to $40.9 million from $38.0 million for the quarter ended June 30, 2021. The increase was primarily driven by an increase of $2.0 million in compensation and employee benefits expense due to a bonus compensation adjustment and higher retirement plan expense in the third quarter, and an increase of $1.5 million in other non-interest expense due to a $2.1 million gain on sale of other real estate owned in the second quarter, partially offset by a decrease of $0.3 million in occupancy expense, a decrease of $0.1 million in equipment and data processing expense, and a decrease of $0.2 million in professional services expense.
PROVISION FOR INCOME TAXES
The effective tax rate was 25.0 percent and 25.1 percent for the three and nine months ended September 30, 2021 compared to 25.4 percent for the three months ended June 30, 2021 and 26.2 percent and 23.9 percent for the three and nine months ended September 30, 2020.
RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY
The annualized return on average assets decreased to 1.38 percent during the third quarter 2021 from 1.48 percent for the second quarter of 2021.
The annualized return on average stockholders' equity decreased to 11.79 percent during the third quarter of 2021 from 13.21 percent for the second quarter of 2021. The annualized return on average tangible stockholders’ equity decreased to 14.15 percent for the third quarter of 2021 from 15.92 percent for the second quarter of 2021.
DIVIDEND DECLARED
The Company’s Board of Directors approved a dividend of $0.125 per share for the quarter ended September 30, 2021, representing an increase of 4.2 percent from the prior quarter. The dividend will be paid on November 26, 2021 to stockholders of record on November 12, 2021.
STOCK REPURCHASE
As previously disclosed, on January 27, 2021, the Company's Board of Directors 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. As of September 30, 2021, the Company completed the program.
CONFERENCE CALL
The Company will conduct a conference call/webcast at 1:30 PM Eastern Daylight Time on Thursday, October 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/brkl211028.html. To listen to the call without access to the slides, interested parties may dial 844-200-6205 (United States) or 929-526-1599 (internationally) and ask for the Brookline Bancorp, Inc. conference call (Access Code 996258). A recorded playback of the call will be available for one week following the call on the Company’s website under “Investor Relations” or by dialing 866-813-9403 (United States) or 1-929-458-6194 (internationally) and entering the passcode: 495902.
ABOUT BROOKLINE BANCORP, INC.
Brookline Bancorp, Inc., a bank holding company with $8.3 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 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. We may also make forward-looking statements in other documents we file with the Securities and Exchange Commission ("SEC"), in our annual reports to shareholders, in press releases and other written materials, and in oral statements made by our officers, directors or employees. You can identify forward looking statements by the use of the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “assume,” “outlook,” “will,” “should,” and other expressions that predict or indicate future events and trends and which do not relate to historical matters, including statements regard the potential effects of the COVID-19 pandemic 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 the COVID-19 pandemic 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, general business and economic conditions on a national basis and in the local markets in which the Company operates; 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 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, the allowance for loan and lease losses as a percentage of total loans and leases less PPP loans, 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. Co-President and 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 September 30,
2021June 30,
2021March 31,
2021December 31,
2020September 30,
2020(Dollars In Thousands Except per Share Data) Earnings Data: Net interest income $ 70,697 $ 71,106 $ 69,109 $ 68,225 $ 65,938 (Credit) provision for credit losses (3,110 ) (3,331 ) (2,147 ) (2,103 ) 4,528 Non-interest income 5,586 5,910 4,794 4,219 4,862 Non-interest expense 40,922 37,966 40,811 40,038 40,947 Income before provision for income taxes 38,471 42,381 35,239 34,509 25,325 Net income 28,839 31,602 26,454 26,663 18,679 Performance Ratios: Net interest margin (1) 3.53 % 3.52 % 3.39 % 3.23 % 3.08 % Interest-rate spread (1) 3.39 % 3.34 % 3.15 % 3.03 % 2.85 % Return on average assets (annualized) 1.38 % 1.48 % 1.21 % 1.20 % 0.83 % Return on average tangible assets (annualized) (non-GAAP) 1.41 % 1.51 % 1.24 % 1.22 % 0.84 % Return on average stockholders' equity (annualized) 11.79 % 13.21 % 11.18 % 11.38 % 7.99 % Return on average tangible stockholders' equity (annualized) (non-GAAP) 14.15 % 15.92 % 13.51 % 13.79 % 9.70 % Efficiency ratio (2) 53.64 % 49.30 % 55.22 % 55.27 % 57.83 % Per Common Share Data: Net income — Basic $ 0.37 $ 0.40 $ 0.34 $ 0.34 $ 0.24 Net income — Diluted 0.37 0.40 0.34 0.34 0.24 Cash dividends declared 0.125 0.120 0.120 0.115 0.115 Book value per share (end of period) 12.61 12.44 12.10 12.05 11.84 Tangible book value per share (end of period) (non-GAAP) 10.51 10.35 10.01 9.96 9.77 Stock price (end of period) 15.26 14.95 15.00 12.04 8.65 Balance Sheet: Total assets $ 8,312,649 $ 8,461,964 $ 8,559,810 $ 8,942,424 $ 9,000,192 Total loans and leases 6,931,694 7,020,275 7,267,552 7,269,553 7,396,358 Total deposits 6,873,010 6,894,701 6,866,786 6,910,696 6,792,523 Total stockholders’ equity 978,452 972,252 945,399 941,778 935,558 Asset Quality: Nonperforming assets $ 36,461 $ 34,588 $ 37,403 $ 44,963 $ 39,365 Nonperforming assets as a percentage of total assets 0.44 % 0.41 % 0.44 % 0.50 % 0.44 % Allowance for loan and lease losses $ 102,515 $ 106,474 $ 109,837 $ 114,379 $ 119,971 Allowance for loan and lease losses as a percentage of total loans and leases 1.48 % 1.52 % 1.51 % 1.57 % 1.62 % Net loan and lease charge-offs $ 1,255 $ 595 $ 1,760 $ 4,381 $ 4,963 Net loan and lease charge-offs as a percentage of average loans and leases (annualized) 0.07 % 0.03 % 0.10 % 0.24 % 0.27 % Capital Ratios: Stockholders’ equity to total assets 11.77 % 11.49 % 11.04 % 10.53 % 10.39 % Tangible stockholders’ equity to tangible assets (non-GAAP) 10.01 % 9.75 % 9.31 % 8.86 % 8.73 % (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) September 30,
2021June 30,
2021March 31,
2021December 30,
2020September 30,
2020ASSETS (In Thousands Except Share Data) Cash and due from banks $ 28,865 $ 36,079 $ 41,284 $ 36,069 $ 33,818 Short-term investments 210,279 284,370 89,643 398,848 283,515 Total cash and cash equivalents 239,144 320,449 130,927 434,917 317,333 Investment securities available-for-sale 732,020 694,151 729,901 745,822 783,867 Equity securities held-for-trading - - 518 526 525 Total investment securities 732,020 694,151 730,419 746,348 784,392 Loans and leases: Commercial real estate loans 3,909,011 3,815,581 3,790,341 3,823,826 3,835,372 Commercial loans and leases 1,869,686 2,038,851 2,324,202 2,274,899 2,354,613 Consumer loans 1,152,997 1,165,843 1,153,009 1,170,828 1,206,373 Total loans and leases 6,931,694 7,020,275 7,267,552 7,269,553 7,396,358 Allowance for loan and lease losses (102,515 ) (106,474 ) (109,837 ) (114,379 ) (119,971 ) Net loans and leases 6,829,179 6,913,801 7,157,715 7,155,174 7,276,387 Restricted equity securities 28,098 31,627 40,400 49,786 61,715 Premises and equipment, net of accumulated depreciation 70,811 71,240 72,524 71,568 72,441 Right-of-use asset operating leases 21,879 22,682 23,180 24,143 23,492 Deferred tax asset 39,643 41,324 42,857 40,129 42,269 Goodwill 160,427 160,427 160,427 160,427 160,427 Identified intangible assets, net of accumulated amortization 2,484 2,692 2,920 3,152 3,464 Other real estate owned and repossessed assets 601 372 6,383 6,515 1,413 Other assets 188,363 203,199 192,058 250,265 256,859 Total assets $ 8,312,649 $ 8,461,964 $ 8,559,810 $ 8,942,424 $ 9,000,192 LIABILITIES AND STOCKHOLDERS' EQUITY Deposits: Demand checking accounts $ 1,816,116 $ 1,926,713 $ 1,724,170 $ 1,592,205 $ 1,550,267 NOW accounts 513,032 495,598 481,988 513,948 459,902 Savings accounts 823,095 782,482 724,504 701,659 716,630 Money market accounts 2,393,362 2,250,651 2,192,468 2,018,977 1,878,258 Certificate of deposit accounts 1,141,861 1,178,131 1,273,105 1,389,998 1,492,913 Brokered deposit accounts 185,544 261,126 470,551 693,909 694,553 Total deposits 6,873,010 6,894,701 6,866,786 6,910,696 6,792,523 Borrowed funds: Advances from the FHLBB 113,977 204,154 378,646 648,849 841,169 Subordinated debentures and notes 83,859 83,821 83,783 83,746 83,707 Other borrowed funds 69,703 75,039 83,574 87,652 80,169 Total borrowed funds 267,539 363,014 546,003 820,247 1,005,045 Operating lease liabilities 21,879 22,682 23,180 24,143 23,492 Mortgagors’ escrow accounts 6,455 6,231 6,483 5,901 6,429 Reserve for unfunded credits 12,736 13,142 13,705 13,071 13,964 Accrued expenses and other liabilities 152,578 189,942 158,254 226,588 223,181 Total liabilities 7,334,197 7,489,712 7,614,411 8,000,646 8,064,634 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 735,990 738,557 737,882 737,178 736,294 Retained earnings, partially restricted 323,862 304,466 282,301 264,892 247,336 Accumulated other comprehensive income 2,615 6,089 2,082 16,490 18,782 Treasury stock, at cost; 7,034,754, 6,536,478, 6,534,602, 6,525,783, and 5,629,854 shares, respectively (84,684 ) (77,493 ) (77,463 ) (77,343 ) (67,376 ) Unallocated common stock held by the Employee Stock Ownership Plan; 31,278, 37,890, 44,502, 51,114, and 58,227 shares, respectively (183 ) (219 ) (255 ) (291 ) (330 ) Total stockholders' equity 978,452 972,252 945,399 941,778 935,558 Total liabilities and stockholders' equity $ 8,312,649 $ 8,461,964 $ 8,559,810 $ 8,942,424 $ 9,000,192 BROOKLINE BANCORP, INC. AND SUBSIDIARIES Consolidated Statements of Income (Unaudited) Three Months Ended September 30,
2021June 30,
2021March 31,
2021December 30,
2020September 30,
2020(In Thousands Except Share Data) Interest and dividend income: Loans and leases $ 74,332 $ 75,026 $ 75,009 $ 76,583 $ 76,240 Debt securities 2,967 3,121 3,118 3,335 3,746 Marketable and restricted equity securities 313 233 301 490 672 Short-term investments 83 42 39 59 46 Total interest and dividend income 77,695 78,422 78,467 80,467 80,704 Interest expense: Deposits 4,571 5,380 6,707 8,825 10,583 Borrowed funds 2,427 1,936 2,651 3,417 4,183 Total interest expense 6,998 7,316 9,358 12,242 14,766 Net interest income 70,697 71,106 69,109 68,225 65,938 (Credit) provision for credit losses (3,110 ) (3,331 ) (2,147 ) (2,103 ) 4,528 Net interest income after provision for credit losses 73,807 74,437 71,256 70,328 61,410 Non-interest income: Deposit fees 2,629 3,015 2,281 2,358 2,305 Loan fees 487 607 599 588 397 Loan level derivative income, net 218 7 474 145 527 Gain (loss) on investment securities, net - 1 (7 ) - 54 Gain on sales of loans and leases held-for-sale 557 538 709 67 632 Other 1,695 1,742 738 1,061 947 Total non-interest income 5,586 5,910 4,794 4,219 4,862 Non-interest expense: Compensation and employee benefits 27,206 25,161 25,821 25,054 26,092 Occupancy 3,567 3,832 4,004 3,806 3,802 Equipment and data processing 4,556 4,697 4,493 4,193 4,293 Professional services 1,072 1,245 1,226 1,338 1,112 FDIC insurance 662 657 1,044 1,630 1,363 Advertising and marketing 1,077 1,110 1,100 1,010 1,024 Amortization of identified intangible assets 208 228 232 312 312 Other 2,574 1,036 2,891 2,695 2,949 Total non-interest expense 40,922 37,966 40,811 40,038 40,947 Income before provision for income taxes 38,471 42,381 35,239 34,509 25,325 Provision for income taxes 9,632 10,779 8,785 7,846 6,646 Net income $ 28,839 $ 31,602 $ 26,454 $ 26,663 $ 18,679 Earnings per common share: Basic $ 0.37 $ 0.40 $ 0.34 $ 0.34 $ 0.24 Diluted $ 0.37 $ 0.40 $ 0.34 $ 0.34 $ 0.24 Weighted average common shares outstanding during the period: Basic 78,000,261 78,150,364 78,143,752 78,533,351 78,948,139 Diluted 78,240,633 78,470,451 78,404,063 78,680,873 79,055,901 Dividends paid per common share $ 0.120 $ 0.120 $ 0.115 $ 0.115 $ 0.115 BROOKLINE BANCORP, INC. AND SUBSIDIARIES Consolidated Statements of Income (Unaudited) Nine Months Ended September 30, 2021 2020 (In Thousands Except Share Data) Interest and dividend income: Loans and leases $ 224,367 $ 233,215 Debt securities 9,206 10,423 Marketable and restricted equity securities 847 2,358 Short-term investments 164 354 Total interest and dividend income 234,584 246,350 Interest expense: Deposits 16,658 39,601 Borrowed funds 7,014 14,811 Total interest expense 23,672 54,412 Net interest income 210,912 191,938 (Credit) provision for credit losses (8,588 ) 63,989 Net interest income after provision for credit losses 219,500 127,949 Non-interest income: Deposit Fees 7,925 6,692 Loan Fees 1,647 1,460 Loan level derivative income, net 699 4,123 (Loss) gain on investment securities, net (6 ) 1,970 Gain on sales of loans and leases held-for-sale 1,804 1,051 Other 4,221 5,129 Total non-interest income 16,290 20,425 Non-interest expense: Compensation and employee benefits 78,188 75,931 Occupancy 11,403 11,580 Equipment and data processing 13,746 13,152 Professional services 3,543 3,819 FDIC insurance 2,363 2,599 Advertising and marketing 3,287 3,116 Amortization of identified intangible assets 668 959 Other 6,501 9,650 Total non-interest expense 119,699 120,806 Income before provision for income taxes 116,091 27,568 Provision for income taxes 29,196 6,596 Net income $ 86,895 $ 20,972 Earnings per common share: Basic $ 1.11 $ 0.27 Diluted $ 1.11 $ 0.27 Weighted average common shares outstanding during the period: Basic 78,097,600 79,092,424 Diluted 78,371,190 79,245,113 Dividends paid per common share $ 0.355 $ 0.345 BROOKLINE BANCORP, INC. AND SUBSIDIARIES Asset Quality Analysis (Unaudited) At and for the Three Months Ended September 30,
2021June 30,
2021March 31,
2021December 31,
2020September 30,
2020(Dollars in Thousands) NONPERFORMING ASSETS: Loans and leases accounted for on a nonaccrual basis: Commercial real estate mortgage $ 10,963 $ 11,657 $ 3,611 $ 3,300 $ 10,841 Multi-family mortgage - - - - - Construction - - 3,853 3,853 - Total commercial real estate loans 10,963 11,657 7,464 7,153 10,841 Commercial 2,539 3,207 3,161 7,702 7,751 Equipment financing 17,655 14,872 15,772 16,757 13,372 Condominium association 91 97 106 112 117 Total commercial loans and leases 20,285 18,176 19,039 24,571 21,240 Residential mortgage 4,150 3,638 3,722 5,587 4,634 Home equity 461 744 793 1,136 1,235 Other consumer 1 1 2 1 2 Total consumer loans 4,612 4,383 4,517 6,724 5,871 Total nonaccrual loans and leases 35,860 34,216 31,020 38,448 37,952 Other real estate owned - - 5,328 5,415 - Other repossessed assets 601 372 1,055 1,100 1,413 Total nonperforming assets $ 36,461 $ 34,588 $ 37,403 $ 44,963 $ 39,365 Loans and leases past due greater than 90 days and still accruing $ 838 $ 3,154 $ 1,179 $ 11,975 $ 1,180 Troubled debt restructurings on accrual 13,526 14,387 16,770 11,483 11,309 Troubled debt restructurings on nonaccrual 6,655 6,410 6,293 7,476 5,742 Total troubled debt restructurings $ 20,181 $ 20,797 $ 23,063 $ 18,959 $ 17,051 Nonperforming loans and leases as a percentage of total loans and leases 0.52 % 0.49 % 0.43 % 0.53 % 0.51 % Nonperforming assets as a percentage of total assets 0.44 % 0.41 % 0.44 % 0.50 % 0.44 % PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES: Allowance for loan and lease losses at beginning of period $ 106,474 $ 109,837 $ 114,379 $ 119,971 $ 119,553 CECL adjustment to retained earnings - - - - - Charge-offs (1,600 ) (1,221 ) (2,143 ) (4,810 ) (5,511 ) Recoveries 345 626 383 429 548 Net charge-offs (1,255 ) (595 ) (1,760 ) (4,381 ) (4,963 ) (Credit) provision for loan and lease losses excluding unfunded commitments * (2,704 ) (2,768 ) (2,782 ) (1,211 ) 5,381 Allowance for loan and lease losses at end of period $ 102,515 $ 106,474 $ 109,837 $ 114,379 $ 119,971 Allowance for loan and lease losses as a percentage of total loans and leases 1.48 % 1.52 % 1.51 % 1.57 % 1.62 % NET CHARGE-OFFS: Commercial real estate loans $ (1 ) $ 17 $ - $ 3,444 $ 70 Commercial loans and leases 1,276 695 1,809 1,011 4,917 Consumer loans (20 ) (117 ) (49 ) (74 ) (24 ) Total net charge-offs $ 1,255 $ 595 $ 1,760 $ 4,381 $ 4,963 Net loan and lease charge-offs as a percentage of average loans and leases (annualized) 0.07 % 0.03 % 0.10 % 0.24 % 0.27 % *Provision for loan and lease losses does not include (credit) provision of $(0.4) million, $(0.6) million, $0.6 million, $(0.9) million and $(0.9) million for credit losses on unfunded commitments during the three months ended September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020 and September 30, 2020, respectively. BROOKLINE BANCORP, INC. AND SUBSIDIARIES Average Yields / Costs (Unaudited) Three Months Ended September 30, 2021 June 30, 2021 September 30, 2020 Average
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Cost(Dollars in Thousands) Assets: Interest-earning assets: Investments: Debt securities (2) $ 713,593 $ 2,967 1.66 % $ 721,029 $ 3,121 1.73 % $ 851,608 $ 3,746 1.76 % Marketable and restricted equity securities (2) 28,877 313 4.33 % 34,989 233 2.67 % 66,154 670 4.06 % Short-term investments 220,110 83 0.15 % 234,317 42 0.07 % 192,446 46 0.10 % Total investments 962,580 3,363 1.40 % 990,335 3,396 1.37 % 1,110,208 4,462 1.61 % Loans and Leases: Commercial real estate loans (3) 3,851,677 35,124 3.57 % 3,780,920 34,320 3.59 % 3,831,826 35,615 3.64 % Commercial loans (3) 901,862 11,715 5.09 % 1,115,910 13,040 4.62 % 1,281,202 10,677 3.27 % Equipment financing (3) 1,079,059 17,725 6.57 % 1,074,469 17,963 6.69 % 1,089,058 19,018 6.99 % Residential mortgage loans (3) 788,874 6,989 3.54 % 788,296 6,927 3.51 % 814,559 7,860 3.86 % Other consumer loans (3) 364,914 2,830 3.07 % 368,845 2,833 3.08 % 395,990 3,127 3.13 % Total loans and leases 6,986,386 74,383 4.26 % 7,128,440 75,083 4.21 % 7,412,635 76,297 4.12 % Total interest-earning assets 7,948,966 77,746 3.91 % 8,118,775 78,479 3.87 % 8,522,843 80,759 3.79 % Non-interest-earning assets 411,669 421,453 495,829 Total assets $ 8,360,635 $ 8,540,228 $ 9,018,672 Liabilities and Stockholders' Equity: Interest-bearing liabilities: Deposits: NOW accounts $ 502,093 116 0.09 % $ 499,883 146 0.12 % $ 427,009 128 0.12 % Savings accounts 785,657 248 0.12 % 774,406 248 0.13 % 688,223 258 0.15 % Money market accounts 2,387,080 1,616 0.27 % 2,247,997 1,497 0.27 % 1,855,803 1,658 0.36 % Certificates of deposit 1,160,113 2,430 0.83 % 1,226,668 3,102 1.01 % 1,536,969 7,022 1.82 % Brokered deposit accounts 216,112 161 0.30 % 418,166 387 0.37 % 562,112 1,517 1.07 % Total interest-bearing deposits 5,051,055 4,571 0.36 % 5,167,120 5,380 0.42 % 5,070,116 10,583 0.83 % Borrowings Advances from the FHLBB 119,043 1,152 3.79 % 250,102 663 1.05 % 944,865 2,876 1.19 % Subordinated debentures and notes 83,840 1,242 5.92 % 83,802 1,242 5.93 % 83,687 1,246 5.96 % Other borrowed funds 76,380 33 0.17 % 74,285 31 0.17 % 118,969 61 0.21 % Total borrowings 279,263 2,427 3.40 % 408,189 1,936 1.88 % 1,147,521 4,183 1.43 % Total interest-bearing liabilities 5,330,318 6,998 0.52 % 5,575,309 7,316 0.53 % 6,217,637 14,766 0.94 % Non-interest-bearing liabilities: Demand checking accounts 1,827,501 1,785,023 1,569,411 Other non-interest-bearing liabilities 224,445 222,689 296,992 Total liabilities 7,382,264 7,583,021 8,084,040 Stockholders’ equity 978,371 957,207 934,632 Total liabilities and equity $ 8,360,635 $ 8,540,228 $ 9,018,672 Net interest income (tax-equivalent basis) /Interest-rate spread (4) 70,748 3.39 % 71,163 3.34 % 65,993 2.85 % Less adjustment of tax-exempt income 51 57 55 Net interest income $ 70,697 $ 71,106 $ 65,938 Net interest margin (5) 3.53 % 3.52 % 3.08 % (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) Nine Months Ended September 30, 2021 September 30, 2020 Average
BalanceInterest
(1)Average
Yield/
CostAverage
BalanceInterest
(1)Average
Yield/
Cost(Dollars in Thousands) Assets: Interest-earning assets: Investments: Debt securities (2) $ 729,623 $ 9,206 1.68 % $ 744,065 $ 10,489 1.88 % Marketable and restricted equity securities (2) 36,451 847 3.10 % 65,367 2,371 4.84 % Short-term investments 215,496 164 0.10 % 174,177 354 0.27 % Total investments 981,570 10,217 1.39 % 983,609 13,214 1.79 % Loans and Leases: Commercial real estate loans (3) 3,806,405 103,689 3.59 % 3,763,750 112,912 3.94 % Commercial loans (3) 1,087,924 37,501 4.55 % 1,100,346 29,455 3.52 % Equipment financing (3) 1,077,522 53,731 6.65 % 1,070,433 56,937 7.09 % Residential mortgage loans (3) 786,015 21,148 3.59 % 813,196 23,862 3.91 % Other consumer loans (3) 369,744 8,458 3.05 % 408,332 10,235 3.33 % Total loans and leases 7,127,610 224,527 4.20 % 7,156,057 233,401 4.35 % Total interest-earning assets 8,109,180 234,744 3.86 % 8,139,666 246,615 4.04 % Non-interest-earning assets 427,880 479,809 Total assets $ 8,537,060 $ 8,619,475 Liabilities and Stockholders' Equity: Interest-bearing liabilities: Deposits: NOW accounts $ 493,378 392 0.11 % $ 394,057 358 0.12 % Savings accounts 757,864 731 0.13 % 659,754 1,258 0.25 % Money market accounts 2,240,968 4,599 0.27 % 1,773,234 7,973 0.60 % Certificates of deposit 1,237,682 9,686 1.05 % 1,618,818 24,637 2.03 % Brokered deposit accounts 413,588 1,250 0.40 % 434,409 5,375 1.65 % Total interest-bearing deposits 5,143,480 16,658 0.43 % 4,880,272 39,601 1.08 % Borrowings Advances from the FHLBB 284,540 3,185 1.48 % 939,821 10,724 1.50 % Subordinated debentures and notes 83,802 3,726 5.93 % 83,648 3,793 6.05 % Other borrowed funds 80,960 103 0.17 % 93,698 294 0.42 % Total borrowings 449,302 7,014 2.06 % 1,117,167 14,811 1.74 % Total interest-bearing liabilities 5,592,782 23,672 0.57 % 5,997,439 54,412 1.21 % Non-interest-bearing liabilities: Demand checking accounts 1,752,640 1,405,871 Other non-interest-bearing liabilities 230,834 280,499 Total liabilities 7,576,256 7,683,809 Stockholders’ equity 960,804 935,666 Total liabilities and equity $ 8,537,060 $ 8,619,475 Net interest income (tax-equivalent basis) /Interest-rate spread (4) 211,072 3.29 % 192,203 2.83 % Less adjustment of tax-exempt income 160 265 Net interest income $ 210,912 $ 191,938 Net interest margin (5) 3.48 % 3.15 % (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 September 30,At and for the Nine Months
Ended September 30,2021 2020 2021 2020 Reconciliation Table - Non-GAAP Financial Information (Dollars in Thousands Except Share Data) Net income $ 28,839 $ 18,679 $ 86,895 $ 20,972 Less: Security gains (losses) (after-tax) - 40 (4 ) 1,499 Operating earnings $ 28,839 $ 18,639 $ 86,899 $ 19,473 Operating earnings per common share: Basic $ 0.37 $ 0.24 $ 1.11 $ 0.25 Diluted 0.37 0.24 1.11 0.25 Weighted average common shares outstanding during the period: Basic 78,000,261 78,948,139 78,097,600 79,092,424 Diluted 78,240,633 79,055,901 78,371,190 79,245,113 Return on average assets * 1.38 % 0.83 % 1.36 % 0.32 % Less: Security gains (losses) (after-tax) * - % - % - % 0.02 % Operating return on average assets * 1.38 % 0.83 % 1.36 % 0.30 % Return on average tangible assets * 1.41 % 0.84 % 1.38 % 0.33 % Less: Security gains (losses) (after-tax) * - % - % - % 0.02 % Operating return on average tangible assets * 1.41 % 0.84 % 1.38 % 0.31 % Return on average stockholders' equity * 11.79 % 7.99 % 12.06 % 2.99 % Less: Security gains (losses) (after-tax) * - % 0.01 % - % 0.22 % Operating return on average stockholders' equity * 11.79 % 7.98 % 12.06 % 2.77 % Return on average tangible stockholders' equity * 14.15 % 9.70 % 14.53 % 3.63 % Less: Security gains (losses) (after-tax) * - % 0.02 % - % 0.26 % Operating return on average tangible stockholders' equity * 14.15 % 9.68 % 14.53 % 3.37 % * Ratios at and for the three and nine months ended are annualized. At and for the Three Months Ended September 30,
2021June 30,
2021March 31,
2021December 30,
2020September 30,
2020(Dollars in Thousands) Net income, as reported $ 28,839 $ 31,602 $ 26,454 $ 26,663 $ 18,679 Average total assets $ 8,360,635 $ 8,540,228 $ 8,714,158 $ 8,874,467 $ 9,018,672 Less: Average goodwill and average identified intangible assets, net 163,011 163,224 163,457 163,758 164,072 Average tangible assets $ 8,197,624 $ 8,377,004 $ 8,550,701 $ 8,710,709 $ 8,854,600 Return on average tangible assets (annualized) 1.41 % 1.51 % 1.24 % 1.22 % 0.84 % Average total stockholders’ equity $ 978,371 $ 957,207 $ 946,482 $ 937,294 $ 934,632 Less: Average goodwill and average identified intangible assets, net 163,011 163,224 163,457 163,758 164,072 Average tangible stockholders’ equity $ 815,360 $ 793,983 $ 783,025 $ 773,536 $ 770,560 Return on average tangible stockholders’ equity (annualized) 14.15 % 15.92 % 13.51 % 13.79 % 9.70 % Total stockholders’ equity $ 978,452 $ 972,252 $ 945,399 $ 941,778 $ 935,558 Less: Goodwill 160,427 160,427 160,427 160,427 160,427 Identified intangible assets, net 2,484 2,692 2,920 3,152 3,464 Tangible stockholders' equity $ 815,541 $ 809,133 $ 782,052 $ 778,199 $ 771,667 Total assets $ 8,312,649 $ 8,461,964 $ 8,559,810 $ 8,942,424 $ 9,000,192 Less: Goodwill 160,427 160,427 160,427 160,427 160,427 Identified intangible assets, net 2,484 2,692 2,920 3,152 3,464 Tangible assets $ 8,149,738 $ 8,298,845 $ 8,396,463 $ 8,778,845 $ 8,836,301 Tangible stockholders’ equity to tangible assets 10.01 % 9.75 % 9.31 % 8.86 % 8.73 % Tangible stockholders' equity $ 815,541 $ 809,133 $ 782,052 $ 778,199 $ 771,667 Number of common shares issued 85,177,172 85,177,172 85,177,172 85,177,172 85,177,172 Less: Treasury shares 7,034,754 6,536,478 6,534,602 6,525,783 5,629,854 Unallocated ESOP shares 31,278 37,890 44,502 51,114 58,227 Unvested restricted shares 502,808 448,105 449,981 458,800 487,318 Number of common shares outstanding 77,608,332 78,154,699 78,148,087 78,141,475 79,001,773 Tangible book value per common share $ 10.51 $ 10.35 $ 10.01 $ 9.96 $ 9.77 Allowance for loan and lease losses $ 102,515 $ 106,474 $ 109,837 $ 114,379 $ 119,971 Total loans and leases $ 6,931,694 $ 7,020,275 $ 7,267,552 $ 7,269,553 $ 7,396,358 Less: Total PPP loans 160,586 348,411 604,790 489,216 568,383 Total loans and leases excluding PPP loans $ 6,771,108 $ 6,671,864 $ 6,662,762 $ 6,780,337 $ 6,827,975 Allowance for loan and lease losses as a percentage of total loans and leases less PPP loans 1.51 % 1.60 % 1.65 % 1.69 % 1.76 % PDF available: http://ml.globenewswire.com/Resource/Download/cfa60d81-3363-4926-9d8f-9fb6fbb27f19