Net Income of $30.1 million, EPS of $0.39
Increases Quarterly Dividend 4%
BOSTON, Oct. 26, 2022 (GLOBE NEWSWIRE) -- Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced net income of $30.1 million, or $0.39 per basic and diluted share, for the third quarter of 2022, compared to net income of $25.2 million, or $0.33 per basic and diluted share, for the second quarter of 2022, and net income of $28.8 million, or $0.37 per basic and diluted share, for the third quarter of 2021.
Paul Perrault, Chairman and Chief Executive Officer of the Company, commented on third quarter performance, “We experienced another near record quarter of earnings in the third quarter led by our experienced team of bankers who continue to generate solid loan growth while maintaining asset quality."
BALANCE SHEET
Total assets at September 30, 2022 increased $181.5 million to $8.7 billion from $8.5 billion at June 30, 2022, and increased $383.1 million from $8.3 billion at September 30, 2021. At September 30, 2022, total loans and leases were $7.4 billion, representing an increase of $129.4 million from June 30, 2022, and an increase of $489.6 million from September 30, 2021. The loan portfolio grew $129.4 million in the third quarter compared to growth of $68.8 million in the second quarter.
Total investment securities at September 30, 2022 decreased $42.1 million to $675.7 million from $717.8 million at June 30, 2022, and decreased $56.3 million from $732.0 million at September 30, 2021. Total cash and cash equivalents at September 30, 2022 increased $22.2 million to $112.5 million from $90.3 million at June 30, 2022, and decreased $126.6 million from $239.1 million at September 30, 2021. As of September 30, 2022, total investment securities and total cash and cash equivalents represented 9.1 percent of total assets as compared to 9.5 percent and 11.7 percent as of June 30, 2022 and September 30, 2021, respectively.
Total deposits at September 30, 2022 decreased $158.9 million to $6.74 billion from $6.89 billion at June 30, 2022, and decreased $137.4 million from $6.87 billion at September 30, 2021.
Total borrowed funds at September 30, 2022 increased $280.6 million to $758.8 million from $478.2 million at June 30, 2022, and increased $491.3 million from $267.5 million at September 30, 2021.
The ratio of stockholders’ equity to total assets was 11.08 percent at September 30, 2022, as compared to 11.38 percent at June 30, 2022, and 11.77 percent at September 30, 2021. The ratio of tangible stockholders’ equity to tangible assets (non-GAAP) was 9.39 percent at September 30, 2022, as compared to 9.65 percent at June 30, 2022, and 10.01 percent at September 30, 2021. Tangible book value per share (non-GAAP) decreased $0.08 from $10.51 at June 30, 2022 to $10.43 at September 30, 2022, compared to $10.51 at September 30, 2021.
NET INTEREST INCOME
Net interest income increased $6.1 million to $78.0 million for the third quarter of 2022 from $71.9 million for the quarter ended June 30, 2022. The net interest margin increased 24 basis points to 3.80 percent for the three months ended September 30, 2022 from 3.56 percent for the three months ended June 30, 2022.
NON-INTEREST INCOME
Total non-interest income for the quarter ended September 30, 2022 decreased $0.1 million to $6.8 million from $6.9 million for the quarter ended June 30, 2022. The decrease was primarily driven by a decrease of $0.3 million in loan level derivative income, net, a decrease of $0.3 million in loan fees, and a decrease of $0.1 million in other non-interest income, partially offset by an increase of $0.6 million in gain on sales of loans and leases.
PROVISION FOR CREDIT LOSSES
The Company recorded a provision for credit losses of $2.8 million for the quarter ended September 30, 2022, compared to $0.2 million for the quarter ended June 30, 2022. Total net recoveries for the third quarter of 2022 were $0.2 million compared to total net charge-offs of $1.2 million in the second quarter of 2022. The decrease of $1.4 million was primarily driven by a decrease in net charge-offs on equipment financing loans of $1.2 million, along with a decrease of $0.2 million on commercial loans. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis decreased to a negative 1 basis point for the third quarter of 2022 from 7 basis points for the second quarter of 2022.
The allowance for loan and lease losses represented 1.27 percent of total loans and leases at September 30, 2022, compared to 1.28 percent at June 30, 2022, and 1.48 percent at September 30, 2021.
ASSET QUALITY
The ratio of nonperforming loans and leases to total loans and leases was 0.24 percent at September 30, 2022, a decrease from 0.28 percent at June 30, 2022. Total nonaccrual loans and leases decreased $3.1 million to $17.7 million at September 30, 2022 from $20.8 million at June 30, 2022. The ratio of nonperforming assets to total assets was 0.21 percent at September 30, 2022, a decrease from 0.25 percent at June 30, 2022. Total nonperforming assets decreased $3.0 million to $18.3 million at September 30, 2022 from $21.3 million at June 30, 2022.
NON-INTEREST EXPENSE
Non-interest expense for the quarter ended September 30, 2022 increased $0.1 million to $45.0 million from $44.9 million for the quarter ended June 30, 2022. The increase was primarily driven by an increase of $0.5 million in merger and acquisition expense, an increase of $0.1 million in equipment and data processing expense, and an increase of $0.1 million in occupancy expense, partially offset by a decrease of $0.5 million in compensation and employee benefits expense and a decrease of $0.1 million in professional services expense.
PROVISION FOR INCOME TAXES
The effective tax rate was 18.7 percent and 22.9 percent for the three and nine months ended September 30, 2022 compared to 25.2 percent for the three months ended June 30, 2022 and 25.0 percent and 25.1 percent for the three and nine months ended September 30, 2021. The effective tax rate for the three and nine months ended September 30, 2022 is reflective of the recognition of energy tax credits related to financing commercial investments in renewable energy platforms.
RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY
The annualized return on average assets increased to 1.40 percent during the third quarter 2022 from 1.18 percent for the second quarter of 2022.
The annualized return on average stockholders' equity increased to 12.29 percent during the third quarter of 2022 from 10.32 percent for the second quarter of 2022. The annualized return on average tangible stockholders’ equity increased to 14.72 percent for the third quarter of 2022 from 12.39 percent for the second quarter of 2022.
DIVIDEND DECLARED
The Company’s Board of Directors approved a dividend of $0.135 per share for the quarter ended September 30, 2022, an increase of half a cent from the prior period. The dividend will be paid on November 25, 2022 to stockholders of record on November 11, 2022.
PCSB ACQUISITION
On May 23, 2022, the Company and PCSB Financial Corporation (“PCSB”), the holding company of PCSB Bank, entered into an Agreement and Plan of Merger (the “Merger Agreement”). Pursuant to the Merger Agreement, PCSB will merge with and into the Company, with the Company as the surviving corporation (the “Merger”). Following the Merger, PCSB Bank will operate as a separate bank subsidiary of the Company. Pursuant to the terms of the Merger Agreement, at the effective time of the Merger, each stockholder of PCSB will receive, for each share of PCSB common stock, at the holder’s election, either $22.00 in cash consideration or 1.3284 shares of Company common stock for each share of PCSB common stock, subject to allocation procedures to ensure that 60% of the outstanding shares of PCSB common stock will be converted into Company common stock. The consummation of the Merger is subject to customary closing conditions, including the receipt of regulatory approvals. The Merger is currently expected to be completed in the fourth quarter of 2022.
CONFERENCE CALL
The Company will conduct a conference call/webcast at 1:30 PM Eastern Time on Thursday, October 27, 2022 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://events.q4inc.com/attendee/723147970. 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 454700). 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 929-458-6194 (internationally) and entering the passcode: 941200.
ABOUT BROOKLINE BANCORP, INC.
Brookline Bancorp, Inc., a bank holding company with $8.7 billion in assets and branch locations in Massachusetts and Rhode Island, is headquartered in Boston, Massachusetts and operates as the holding company for Brookline Bank 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 regarding the Company’s business, credit quality, financial condition, liquidity and results of operations. Forward-looking statements 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; the Company and PCSB’s ability to achieve the synergies and value creation contemplated by the proposed acquisition; the Company and PCSB’s ability to successfully integrate operations in the proposed acquisition; the effect of the announcement of the proposed acquisition on the ability of PCSB to maintain relationships with its key partners, customers and employees, and on its operating business generally, changes in consumer behavior due to changing political business and economic conditions (including inflation); changes in information technology, cybersecurity incidents, fraud, natural disasters, war, terrorism, civil unrest, the ongoing COVID-19 pandemic, and future pandemics; the possibility that future credit losses are higher than currently expected due to changes in economic assumptions or adverse economic developments; interest rate changes or volatility, as well as changes in the balance and mix of loans and deposits; changes in loan demand and collectability; and ongoing 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 earnings per common share, 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. 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, 2022 | June 30, 2022 | March 31, 2022 | December 31, 2021 | September 30, 2021 | |||||||||||
| (Dollars In Thousands Except per Share Data) | |||||||||||||||
| Earnings Data: | |||||||||||||||
| Net interest income | $ | 78,026 | $ | 71,867 | $ | 69,848 | $ | 71,461 | $ | 70,697 | |||||
| Provision (credit) for credit losses | 2,835 | 227 | (160 | ) | 751 | (3,110 | ) | ||||||||
| Non-interest income | 6,834 | 6,928 | 5,529 | 10,699 | 5,586 | ||||||||||
| Non-interest expense | 44,959 | 44,871 | 42,487 | 42,909 | 40,922 | ||||||||||
| Income before provision for income taxes | 37,066 | 33,697 | 33,050 | 38,500 | 38,471 | ||||||||||
| Net income | 30,149 | 25,195 | 24,705 | 28,545 | 28,839 | ||||||||||
| Performance Ratios: | |||||||||||||||
| Net interest margin (1) | 3.80 | % | 3.56 | % | 3.49 | % | 3.52 | % | 3.53 | % | |||||
| Interest-rate spread (1) | 3.58 | % | 3.41 | % | 3.31 | % | 3.42 | % | 3.39 | % | |||||
| Return on average assets (annualized) | 1.40 | % | 1.18 | % | 1.16 | % | 1.35 | % | 1.38 | % | |||||
| Return on average tangible assets (annualized) (non-GAAP) | 1.43 | % | 1.21 | % | 1.18 | % | 1.38 | % | 1.41 | % | |||||
| Return on average stockholders' equity (annualized) | 12.29 | % | 10.32 | % | 9.91 | % | 11.56 | % | 11.79 | % | |||||
| Return on average tangible stockholders' equity (annualized) (non-GAAP) | 14.72 | % | 12.39 | % | 11.84 | % | 13.84 | % | 14.15 | % | |||||
| Efficiency ratio (2) | 52.98 | % | 56.95 | % | 56.37 | % | 52.23 | % | 53.64 | % | |||||
| Per Common Share Data: | |||||||||||||||
| Net income — Basic | $ | 0.39 | $ | 0.33 | $ | 0.32 | $ | 0.37 | $ | 0.37 | |||||
| Net income — Diluted | 0.39 | 0.33 | 0.32 | 0.37 | 0.37 | ||||||||||
| Cash dividends declared | 0.135 | 0.130 | 0.130 | 0.125 | 0.125 | ||||||||||
| Book value per share (end of period) | 12.54 | 12.63 | 12.65 | 12.82 | 12.61 | ||||||||||
| Tangible book value per share (end of period) (non-GAAP) | 10.43 | 10.51 | 10.56 | 10.73 | 10.51 | ||||||||||
| Stock price (end of period) | 11.65 | 13.31 | 15.82 | 16.19 | 15.26 | ||||||||||
| Balance Sheet: | |||||||||||||||
| Total assets | $ | 8,695,708 | $ | 8,514,230 | $ | 8,633,736 | $ | 8,602,622 | $ | 8,312,649 | |||||
| Total loans and leases | 7,421,304 | 7,291,912 | 7,223,130 | 7,154,457 | 6,931,694 | ||||||||||
| Total deposits | 6,735,605 | 6,894,457 | 7,094,378 | 7,049,906 | 6,873,010 | ||||||||||
| Total stockholders’ equity | 963,618 | 968,496 | 981,935 | 995,342 | 978,452 | ||||||||||
| Asset Quality: | |||||||||||||||
| Nonperforming assets | $ | 18,312 | $ | 21,259 | $ | 26,506 | $ | 33,177 | $ | 36,461 | |||||
| Nonperforming assets as a percentage of total assets | 0.21 | % | 0.25 | % | 0.31 | % | 0.39 | % | 0.44 | % | |||||
| Allowance for loan and lease losses | $ | 94,169 | $ | 93,188 | $ | 95,463 | $ | 99,084 | $ | 102,515 | |||||
| Allowance for loan and lease losses as a percentage of total loans and leases | 1.27 | % | 1.28 | % | 1.32 | % | 1.38 | % | 1.48 | % | |||||
| Net loan and lease (recoveries) charge-offs | $ | (179 | ) | $ | 1,242 | $ | 1,947 | $ | 2,124 | $ | 1,255 | ||||
| Net loan and lease charge-offs as a percentage of average loans and leases (annualized) | (0.01 | )% | 0.07 | % | 0.11 | % | 0.12 | % | 0.07 | % | |||||
| Capital Ratios: | |||||||||||||||
| Stockholders’ equity to total assets | 11.08 | % | 11.38 | % | 11.37 | % | 11.57 | % | 11.77 | % | |||||
| Tangible stockholders’ equity to tangible assets (non-GAAP) | 9.39 | % | 9.65 | % | 9.67 | % | 9.87 | % | 10.01 | % | |||||
| (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, 2022 | June 30, 2022 | March 31, 2022 | December 31, 2021 | September 30, 2021 | |||||||||||
| ASSETS | (In Thousands Except Share Data) | ||||||||||||||
| Cash and due from banks | $ | 65,638 | $ | 50,429 | $ | 89,032 | $ | 66,265 | $ | 28,865 | |||||
| Short-term investments | 46,873 | 39,900 | 204,239 | 261,472 | 210,279 | ||||||||||
| Total cash and cash equivalents | 112,511 | 90,329 | 293,271 | 327,737 | 239,144 | ||||||||||
| Investment securities available-for-sale | 675,692 | 717,818 | 730,562 | 720,866 | 732,020 | ||||||||||
| Total investment securities | 675,692 | 717,818 | 730,562 | 720,866 | 732,020 | ||||||||||
| Loans and leases: | |||||||||||||||
| Commercial real estate loans | 4,269,512 | 4,225,754 | 4,235,325 | 4,103,040 | 3,909,011 | ||||||||||
| Commercial loans and leases | 1,933,645 | 1,860,182 | 1,800,383 | 1,887,136 | 1,869,686 | ||||||||||
| Consumer loans | 1,218,147 | 1,205,976 | 1,187,422 | 1,164,281 | 1,152,997 | ||||||||||
| Total loans and leases | 7,421,304 | 7,291,912 | 7,223,130 | 7,154,457 | 6,931,694 | ||||||||||
| Allowance for loan and lease losses | (94,169 | ) | (93,188 | ) | (95,463 | ) | (99,084 | ) | (102,515 | ) | |||||
| Net loans and leases | 7,327,135 | 7,198,724 | 7,127,667 | 7,055,373 | 6,829,179 | ||||||||||
| Restricted equity securities | 44,760 | 35,406 | 29,066 | 28,981 | 28,098 | ||||||||||
| Premises and equipment, net of accumulated depreciation | 69,912 | 69,557 | 69,365 | 70,359 | 70,811 | ||||||||||
| Right-of-use asset operating leases | 18,614 | 18,226 | 19,571 | 20,508 | 21,879 | ||||||||||
| Deferred tax asset | 56,894 | 50,736 | 46,886 | 38,987 | 39,643 | ||||||||||
| Goodwill | 160,427 | 160,427 | 160,427 | 160,427 | 160,427 | ||||||||||
| Identified intangible assets, net of accumulated amortization | 1,902 | 2,022 | 2,142 | 2,276 | 2,484 | ||||||||||
| Other real estate owned and repossessed assets | 591 | 507 | 990 | 718 | 601 | ||||||||||
| Other assets | 227,270 | 170,478 | 153,789 | 176,390 | 188,363 | ||||||||||
| Total assets | $ | 8,695,708 | $ | 8,514,230 | $ | 8,633,736 | $ | 8,602,622 | $ | 8,312,649 | |||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||
| Deposits: | |||||||||||||||
| Demand checking accounts | $ | 1,848,562 | $ | 1,845,365 | $ | 1,903,331 | $ | 1,888,462 | $ | 1,816,116 | |||||
| NOW accounts | 597,870 | 628,791 | 627,904 | 604,097 | 513,032 | ||||||||||
| Savings accounts | 824,789 | 894,926 | 967,183 | 915,804 | 823,095 | ||||||||||
| Money market accounts | 2,405,680 | 2,402,992 | 2,432,377 | 2,358,306 | 2,393,362 | ||||||||||
| Certificate of deposit accounts | 924,771 | 1,006,786 | 1,048,036 | 1,117,695 | 1,141,861 | ||||||||||
| Brokered deposit accounts | 133,933 | 115,597 | 115,547 | 165,542 | 185,544 | ||||||||||
| Total deposits | 6,735,605 | 6,894,457 | 7,094,378 | 7,049,906 | 6,873,010 | ||||||||||
| Borrowed funds: | |||||||||||||||
| Advances from the FHLBB | 557,895 | 307,967 | 201,236 | 147,907 | 113,977 | ||||||||||
| Subordinated debentures and notes | 84,008 | 83,970 | 83,934 | 83,897 | 83,859 | ||||||||||
| Other borrowed funds | 116,865 | 86,263 | 107,727 | 125,517 | 69,703 | ||||||||||
| Total borrowed funds | 758,768 | 478,200 | 392,897 | 357,321 | 267,539 | ||||||||||
| Operating lease liabilities | 18,614 | 18,226 | 19,571 | 20,508 | 21,879 | ||||||||||
| Mortgagors’ escrow accounts | 5,785 | 5,771 | 5,780 | 6,296 | 6,455 | ||||||||||
| Reserve for unfunded credits | 19,555 | 17,511 | 16,305 | 14,794 | 12,736 | ||||||||||
| Accrued expenses and other liabilities | 193,763 | 131,569 | 122,870 | 158,455 | 152,578 | ||||||||||
| Total liabilities | 7,732,090 | 7,545,734 | 7,651,801 | 7,607,280 | 7,334,197 | ||||||||||
| 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 | 735,119 | 738,544 | 737,658 | 736,826 | 735,990 | ||||||||||
| Retained earnings, partially restricted | 392,779 | 372,677 | 357,576 | 342,639 | 323,862 | ||||||||||
| Accumulated other comprehensive income | (70,227 | ) | (44,977 | ) | (29,322 | ) | (110 | ) | 2,615 | ||||||
| Treasury stock, at cost; | |||||||||||||||
| 7,730,945, 7,995,888, 7,037,464, 7,037,464, and 7,034,754 shares, respectively | (94,866 | ) | (98,525 | ) | (84,718 | ) | (84,718 | ) | (84,684 | ) | |||||
| Unallocated common stock held by the Employee Stock Ownership Plan; | |||||||||||||||
| 4,833, 11,442, 18,051, 24,660, and 31,278 shares, respectively | (39 | ) | (75 | ) | (111 | ) | (147 | ) | (183 | ) | |||||
| Total stockholders' equity | 963,618 | 968,496 | 981,935 | 995,342 | 978,452 | ||||||||||
| Total liabilities and stockholders' equity | $ | 8,695,708 | $ | 8,514,230 | $ | 8,633,736 | $ | 8,602,622 | $ | 8,312,649 | |||||
| BROOKLINE BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||
| Consolidated Statements of Income (Unaudited) | |||||||||||||||
| Three Months Ended | |||||||||||||||
| September 30, 2022 | June 30, 2022 | March 31, 2022 | December 31, 2021 | September 30, 2021 | |||||||||||
| (In Thousands Except Share Data) | |||||||||||||||
| Interest and dividend income: | |||||||||||||||
| Loans and leases | $ | 84,375 | $ | 74,287 | $ | 71,721 | $ | 73,560 | $ | 74,332 | |||||
| Debt securities | 3,337 | 3,249 | 2,996 | 2,972 | 2,967 | ||||||||||
| Marketable and restricted equity securities | 467 | 337 | 328 | 325 | 313 | ||||||||||
| Short-term investments | 464 | 156 | 66 | 88 | 83 | ||||||||||
| Total interest and dividend income | 88,643 | 78,029 | 75,111 | 76,945 | 77,695 | ||||||||||
| Interest expense: | |||||||||||||||
| Deposits | 7,354 | 4,282 | 3,771 | 4,055 | 4,571 | ||||||||||
| Borrowed funds | 3,263 | 1,880 | 1,492 | 1,429 | 2,427 | ||||||||||
| Total interest expense | 10,617 | 6,162 | 5,263 | 5,484 | 6,998 | ||||||||||
| Net interest income | 78,026 | 71,867 | 69,848 | 71,461 | 70,697 | ||||||||||
| Provision (credit) for credit losses | 2,835 | 227 | (160 | ) | 751 | (3,110 | ) | ||||||||
| Net interest income after provision for credit losses | 75,191 | 71,640 | 70,008 | 70,710 | 73,807 | ||||||||||
| Non-interest income: | |||||||||||||||
| Deposit fees | 2,759 | 2,744 | 2,500 | 2,653 | 2,629 | ||||||||||
| Loan fees | 349 | 666 | 747 | 448 | 487 | ||||||||||
| Loan level derivative income, net | 1,275 | 1,615 | 686 | 3,981 | 218 | ||||||||||
| Loss on investment securities, net | — | — | — | (32 | ) | — | |||||||||
| Gain on sales of loans and leases held-for-sale | 889 | 291 | 344 | 1,933 | 557 | ||||||||||
| Other | 1,562 | 1,612 | 1,252 | 1,716 | 1,695 | ||||||||||
| Total non-interest income | 6,834 | 6,928 | 5,529 | 10,699 | 5,586 | ||||||||||
| Non-interest expense: | |||||||||||||||
| Compensation and employee benefits | 28,306 | 28,772 | 26,884 | 28,598 | 27,206 | ||||||||||
| Occupancy | 3,906 | 3,807 | 4,284 | 3,558 | 3,567 | ||||||||||
| Equipment and data processing | 5,066 | 4,931 | 5,078 | 4,576 | 4,556 | ||||||||||
| Professional services | 1,069 | 1,219 | 1,226 | 1,151 | 1,072 | ||||||||||
| FDIC insurance | 709 | 739 | 728 | 617 | 662 | ||||||||||
| Advertising and marketing | 1,337 | 1,319 | 1,272 | 880 | 1,077 | ||||||||||
| Amortization of identified intangible assets | 120 | 120 | 134 | 208 | 208 | ||||||||||
| Merger and acquisition expense | 1,073 | 535 | — | — | — | ||||||||||
| Other | 3,373 | 3,429 | 2,881 | 3,321 | 2,574 | ||||||||||
| Total non-interest expense | 44,959 | 44,871 | 42,487 | 42,909 | 40,922 | ||||||||||
| Income before provision for income taxes | 37,066 | 33,697 | 33,050 | 38,500 | 38,471 | ||||||||||
| Provision for income taxes | 6,917 | 8,502 | 8,345 | 9,955 | 9,632 | ||||||||||
| Net income | $ | 30,149 | $ | 25,195 | $ | 24,705 | $ | 28,545 | $ | 28,839 | |||||
| Earnings per common share: | |||||||||||||||
| Basic | $ | 0.39 | $ | 0.33 | $ | 0.32 | $ | 0.37 | $ | 0.37 | |||||
| Diluted | $ | 0.39 | $ | 0.33 | $ | 0.32 | $ | 0.37 | $ | 0.37 | |||||
| Weighted average common shares outstanding during the period: | |||||||||||||||
| Basic | 76,779,038 | 77,091,013 | 77,617,227 | 77,610,608 | 78,000,261 | ||||||||||
| Diluted | 77,007,971 | 77,419,288 | 77,926,822 | 77,864,097 | 78,240,633 | ||||||||||
| Dividends paid per common share | $ | 0.130 | $ | 0.130 | $ | 0.125 | $ | 0.125 | $ | 0.120 | |||||
| BROOKLINE BANCORP, INC. AND SUBSIDIARIES | ||||||
| Consolidated Statements of Income (Unaudited) | ||||||
| Nine Months Ended September 30, | ||||||
| 2022 | 2021 | |||||
| (In Thousands Except Share Data) | ||||||
| Interest and dividend income: | ||||||
| Loans and leases | $ | 230,383 | $ | 224,367 | ||
| Debt securities | 9,582 | 9,206 | ||||
| Marketable and restricted equity securities | 1,132 | 847 | ||||
| Short-term investments | 686 | 164 | ||||
| Total interest and dividend income | 241,783 | 234,584 | ||||
| Interest expense: | ||||||
| Deposits | 15,407 | 16,658 | ||||
| Borrowed funds | 6,635 | 7,014 | ||||
| Total interest expense | 22,042 | 23,672 | ||||
| Net interest income | 219,741 | 210,912 | ||||
| Provision (credit) for credit losses | 2,902 | (8,588 | ) | |||
| Net interest income after provision for credit losses | 216,839 | 219,500 | ||||
| Non-interest income: | ||||||
| Deposit Fees | 8,003 | 7,925 | ||||
| Loan Fees | 1,762 | 1,647 | ||||
| Loan level derivative income, net | 3,576 | 699 | ||||
| Loss on investment securities, net | — | (6 | ) | |||
| Gain on sales of loans and leases held-for-sale | 1,524 | 1,804 | ||||
| Other | 4,426 | 4,221 | ||||
| Total non-interest income | 19,291 | 16,290 | ||||
| Non-interest expense: | ||||||
| Compensation and employee benefits | 83,962 | 78,188 | ||||
| Occupancy | 11,997 | 11,403 | ||||
| Equipment and data processing | 15,075 | 13,746 | ||||
| Professional services | 3,514 | 3,543 | ||||
| FDIC insurance | 2,176 | 2,363 | ||||
| Advertising and marketing | 3,928 | 3,287 | ||||
| Amortization of identified intangible assets | 374 | 668 | ||||
| Merger and acquisition expense | 1,608 | — | ||||
| Other | 9,683 | 6,501 | ||||
| Total non-interest expense | 132,317 | 119,699 | ||||
| Income before provision for income taxes | 103,813 | 116,091 | ||||
| Provision for income taxes | 23,764 | 29,196 | ||||
| Net income | $ | 80,049 | $ | 86,895 | ||
| Earnings per common share: | ||||||
| Basic | $ | 1.04 | $ | 1.11 | ||
| Diluted | $ | 1.04 | $ | 1.11 | ||
| Weighted average common shares outstanding during the period: | ||||||
| Basic | 77,159,356 | 78,097,600 | ||||
| Diluted | 77,448,290 | 78,371,190 | ||||
| Dividends paid per common share | $ | 0.385 | $ | 0.355 | ||
| BROOKLINE BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||
| Asset Quality Analysis (Unaudited) | |||||||||||||||
| At and for the Three Months Ended | |||||||||||||||
| September 30, 2022 | June 30, 2022 | March 31, 2022 | December 31, 2021 | September 30, 2021 | |||||||||||
| (Dollars in Thousands) | |||||||||||||||
| NONPERFORMING ASSETS: | |||||||||||||||
| Loans and leases accounted for on a nonaccrual basis: | |||||||||||||||
| Commercial real estate mortgage | $ | 3,136 | $ | 6,470 | $ | 8,313 | $ | 10,848 | $ | 10,963 | |||||
| Total commercial real estate loans | 3,136 | 6,470 | 8,313 | 10,848 | 10,963 | ||||||||||
| Commercial | 618 | 892 | 1,366 | 2,318 | 2,539 | ||||||||||
| Equipment financing | 10,544 | 10,183 | 11,685 | 15,014 | 17,655 | ||||||||||
| Condominium association | 64 | 71 | 77 | 84 | 91 | ||||||||||
| Total commercial loans and leases | 11,226 | 11,146 | 13,128 | 17,416 | 20,285 | ||||||||||
| Residential mortgage | 2,741 | 2,412 | 3,394 | 3,909 | 4,150 | ||||||||||
| Home equity | 616 | 721 | 680 | 285 | 461 | ||||||||||
| Other consumer | 2 | 3 | 1 | 1 | 1 | ||||||||||
| Total consumer loans | 3,359 | 3,136 | 4,075 | 4,195 | 4,612 | ||||||||||
| Total nonaccrual loans and leases | 17,721 | 20,752 | 25,516 | 32,459 | 35,860 | ||||||||||
| Other repossessed assets | 591 | 507 | 990 | 718 | 601 | ||||||||||
| Total nonperforming assets | $ | 18,312 | $ | 21,259 | $ | 26,506 | $ | 33,177 | $ | 36,461 | |||||
| Loans and leases past due greater than 90 days and still accruing | $ | 9,583 | $ | 266 | $ | 4 | $ | 1 | $ | 838 | |||||
| Troubled debt restructurings on accrual | 9,728 | 11,524 | 10,858 | 12,580 | 13,526 | ||||||||||
| Troubled debt restructurings on nonaccrual | 4,449 | 5,097 | 5,189 | 6,709 | 6,655 | ||||||||||
| Total troubled debt restructurings | $ | 14,177 | $ | 16,621 | $ | 16,047 | $ | 19,289 | $ | 20,181 | |||||
| Nonperforming loans and leases as a percentage of total loans and leases | 0.24 | % | 0.28 | % | 0.35 | % | 0.45 | % | 0.52 | % | |||||
| Nonperforming assets as a percentage of total assets | 0.21 | % | 0.25 | % | 0.31 | % | 0.39 | % | 0.44 | % | |||||
| PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES: | |||||||||||||||
| Allowance for loan and lease losses at beginning of period | $ | 93,188 | $ | 95,463 | $ | 99,084 | $ | 102,515 | $ | 106,474 | |||||
| Charge-offs | (598 | ) | (1,533 | ) | (2,344 | ) | (2,562 | ) | (1,600 | ) | |||||
| Recoveries | 777 | 291 | 397 | 438 | 345 | ||||||||||
| Net recoveries (charge-offs) | 179 | (1,242 | ) | (1,947 | ) | (2,124 | ) | (1,255 | ) | ||||||
| Provision (credit) for loan and lease losses excluding unfunded commitments * | 802 | (1,033 | ) | (1,674 | ) | (1,307 | ) | (2,704 | ) | ||||||
| Allowance for loan and lease losses at end of period | $ | 94,169 | $ | 93,188 | $ | 95,463 | $ | 99,084 | $ | 102,515 | |||||
| Allowance for loan and lease losses as a percentage of total loans and leases | 1.27 | % | 1.28 | % | 1.32 | % | 1.38 | % | 1.48 | % | |||||
| NET (RECOVERIES) CHARGE-OFFS: | |||||||||||||||
| Commercial real estate loans | $ | (6 | ) | $ | (6 | ) | $ | 31 | $ | — | $ | (1 | ) | ||
| Commercial loans and leases | (179 | ) | 1,254 | 1,948 | 2,143 | 1,276 | |||||||||
| Consumer loans | 6 | (6 | ) | (32 | ) | (19 | ) | (20 | ) | ||||||
| Total net (recoveries) charge-offs | $ | (179 | ) | $ | 1,242 | $ | 1,947 | $ | 2,124 | $ | 1,255 | ||||
| Net loan and lease charge-offs as a percentage of average loans and leases (annualized) | (0.01 | )% | 0.07 | % | 0.11 | % | 0.12 | % | 0.07 | % | |||||
| *Provision for loan and lease losses does not include provision (credit) of $2.0 million, $1.2 million, $1.5 million, $2.1 million and $(0.4) million for credit losses on unfunded commitments during the three months ended September 30, 2022, June 30, 2022, March 31, 2022, December 31, 2021 and September 30, 2021, respectively. | |||||||||||||||
| BROOKLINE BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||
| Average Yields / Costs (Unaudited) | ||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||
| September 30, 2022 | June 30, 2022 | September 30, 2021 | ||||||||||||||||||||||
| Average Balance | Interest (1) | Average Yield/ Cost | Average Balance | Interest (1) | Average Yield/ Cost | Average Balance | Interest (1) | Average Yield/ Cost | ||||||||||||||||
| (Dollars in Thousands) | ||||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||||
| Investments: | ||||||||||||||||||||||||
| Debt securities (2) | $ | 714,226 | $ | 3,337 | 1.87 | % | $ | 726,374 | $ | 3,249 | 1.79 | % | $ | 713,593 | $ | 2,967 | 1.66 | % | ||||||
| Marketable and restricted equity securities (2) | 36,525 | 467 | 5.12 | % | 30,461 | 337 | 4.42 | % | 28,877 | 313 | 4.33 | % | ||||||||||||
| Short-term investments | 66,257 | 464 | 2.80 | % | 99,905 | 156 | 0.62 | % | 220,110 | 83 | 0.15 | % | ||||||||||||
| Total investments | 817,008 | 4,268 | 2.09 | % | 856,740 | 3,742 | 1.75 | % | 962,580 | 3,363 | 1.40 | % | ||||||||||||
| Loans and Leases: | ||||||||||||||||||||||||
| Commercial real estate loans (3) | 4,239,155 | 44,729 | 4.13 | % | 4,220,257 | 38,967 | 3.65 | % | 3,851,677 | 35,124 | 3.57 | % | ||||||||||||
| Commercial loans (3) | 731,095 | 8,492 | 4.55 | % | 695,365 | 7,074 | 4.03 | % | 901,862 | 11,715 | 5.09 | % | ||||||||||||
| Equipment financing (3) | 1,157,829 | 19,042 | 6.58 | % | 1,129,606 | 17,897 | 6.34 | % | 1,079,059 | 17,725 | 6.57 | % | ||||||||||||
| Residential mortgage loans (3) | 826,969 | 7,560 | 3.66 | % | 818,826 | 7,123 | 3.48 | % | 788,874 | 6,989 | 3.54 | % | ||||||||||||
| Other consumer loans (3) | 379,999 | 4,605 | 4.80 | % | 376,225 | 3,274 | 3.48 | % | 364,914 | 2,830 | 3.07 | % | ||||||||||||
| Total loans and leases | 7,335,047 | 84,428 | 4.60 | % | 7,240,279 | 74,335 | 4.11 | % | 6,986,386 | 74,383 | 4.26 | % | ||||||||||||
| Total interest-earning assets | 8,152,055 | 88,696 | 4.35 | % | 8,097,019 | 78,077 | 3.86 | % | 7,948,966 | 77,746 | 3.91 | % | ||||||||||||
| Non-interest-earning assets | 434,365 | 418,311 | 411,669 | |||||||||||||||||||||
| Total assets | $ | 8,586,420 | $ | 8,515,330 | $ | 8,360,635 | ||||||||||||||||||
| Liabilities and Stockholders' Equity: | ||||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||
| Deposits: | ||||||||||||||||||||||||
| NOW accounts | $ | 607,210 | 579 | 0.38 | % | $ | 612,439 | 216 | 0.14 | % | $ | 502,093 | 116 | 0.09 | % | |||||||||
| Savings accounts | 881,988 | 664 | 0.30 | % | 930,957 | 211 | 0.09 | % | 785,657 | 248 | 0.12 | % | ||||||||||||
| Money market accounts | 2,423,920 | 4,038 | 0.66 | % | 2,429,043 | 2,073 | 0.34 | % | 2,387,080 | 1,616 | 0.27 | % | ||||||||||||
| Certificates of deposit | 964,112 | 1,803 | 0.74 | % | 1,018,471 | 1,694 | 0.67 | % | 1,160,113 | 2,430 | 0.83 | % | ||||||||||||
| Brokered deposit accounts | 117,058 | 270 | 0.92 | % | 115,535 | 88 | 0.30 | % | 216,112 | 161 | 0.30 | % | ||||||||||||
| Total interest-bearing deposits | 4,994,288 | 7,354 | 0.58 | % | 5,106,445 | 4,282 | 0.34 | % | 5,051,055 | 4,571 | 0.36 | % | ||||||||||||
| Borrowings | ||||||||||||||||||||||||
| Advances from the FHLBB | 331,840 | 1,700 | 2.00 | % | 183,047 | 489 | 1.06 | % | 119,043 | 1,152 | 3.79 | % | ||||||||||||
| Subordinated debentures and notes | 83,989 | 1,295 | 6.17 | % | 83,952 | 1,262 | 6.02 | % | 83,840 | 1,242 | 5.92 | % | ||||||||||||
| Other borrowed funds | 89,019 | 268 | 1.20 | % | 106,363 | 129 | 0.48 | % | 76,380 | 33 | 0.17 | % | ||||||||||||
| Total borrowings | 504,848 | 3,263 | 2.53 | % | 373,362 | 1,880 | 1.99 | % | 279,263 | 2,427 | 3.40 | % | ||||||||||||
| Total interest-bearing liabilities | 5,499,136 | 10,617 | 0.77 | % | 5,479,807 | 6,162 | 0.45 | % | 5,330,318 | 6,998 | 0.52 | % | ||||||||||||
| Non-interest-bearing liabilities: | ||||||||||||||||||||||||
| Demand checking accounts | 1,908,459 | 1,886,284 | 1,827,501 | |||||||||||||||||||||
| Other non-interest-bearing liabilities | 197,446 | 173,072 | 224,445 | |||||||||||||||||||||
| Total liabilities | 7,605,041 | 7,539,163 | 7,382,264 | |||||||||||||||||||||
| Stockholders’ equity | 981,379 | 976,167 | 978,371 | |||||||||||||||||||||
| Total liabilities and equity | $ | 8,586,420 | $ | 8,515,330 | $ | 8,360,635 | ||||||||||||||||||
| Net interest income (tax-equivalent basis) /Interest-rate spread (4) | 78,079 | 3.58 | % | 71,915 | 3.41 | % | 70,748 | 3.39 | % | |||||||||||||||
| Less adjustment of tax-exempt income | 53 | 48 | 51 | |||||||||||||||||||||
| Net interest income | $ | 78,026 | $ | 71,867 | $ | 70,697 | ||||||||||||||||||
| Net interest margin (5) | 3.80 | % | 3.56 | % | 3.53 | % | ||||||||||||||||||
| (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, 2022 | September 30, 2021 | |||||||||||||||
| Average Balance | Interest (1) | Average Yield/ Cost | Average Balance | Interest (1) | Average Yield/ Cost | |||||||||||
| (Dollars in Thousands) | ||||||||||||||||
| Assets: | ||||||||||||||||
| Interest-earning assets: | ||||||||||||||||
| Investments: | ||||||||||||||||
| Debt securities (2) | $ | 720,266 | $ | 9,582 | 1.77 | % | $ | 729,623 | $ | 9,206 | 1.68 | % | ||||
| Marketable and restricted equity securities (2) | 31,663 | 1,132 | 4.77 | % | 36,451 | 847 | 3.10 | % | ||||||||
| Short-term investments | 119,083 | 686 | 0.77 | % | 215,496 | 164 | 0.10 | % | ||||||||
| Total investments | 871,012 | 11,400 | 1.75 | % | 981,570 | 10,217 | 1.39 | % | ||||||||
| Loans and Leases: | ||||||||||||||||
| Commercial real estate loans (3) | 4,204,260 | 119,723 | 3.76 | % | 3,806,405 | 103,689 | 3.59 | % | ||||||||
| Commercial loans (3) | 727,333 | 23,564 | 4.28 | % | 1,087,924 | 37,501 | 4.55 | % | ||||||||
| Equipment financing (3) | 1,131,069 | 54,951 | 6.48 | % | 1,077,522 | 53,731 | 6.65 | % | ||||||||
| Residential mortgage loans (3) | 816,992 | 21,675 | 3.54 | % | 786,015 | 21,148 | 3.59 | % | ||||||||
| Other consumer loans (3) | 374,302 | 10,629 | 3.79 | % | 369,744 | 8,458 | 3.05 | % | ||||||||
| Total loans and leases | 7,253,956 | 230,542 | 4.24 | % | 7,127,610 | 224,527 | 4.20 | % | ||||||||
| Total interest-earning assets | 8,124,968 | 241,942 | 3.97 | % | 8,109,180 | 234,744 | 3.86 | % | ||||||||
| Non-interest-earning assets | 419,501 | 427,880 | ||||||||||||||
| Total assets | $ | 8,544,469 | $ | 8,537,060 | ||||||||||||
| Liabilities and Stockholders' Equity: | ||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||
| Deposits: | ||||||||||||||||
| NOW accounts | $ | 603,243 | 898 | 0.20 | % | $ | 493,378 | 392 | 0.11 | % | ||||||
| Savings accounts | 915,185 | 1,073 | 0.16 | % | 757,864 | 731 | 0.13 | % | ||||||||
| Money market accounts | 2,423,207 | 7,681 | 0.42 | % | 2,240,968 | 4,599 | 0.27 | % | ||||||||
| Certificates of deposit | 1,024,303 | 5,345 | 0.70 | % | 1,237,682 | 9,686 | 1.05 | % | ||||||||
| Brokered deposit accounts | 121,724 | 410 | 0.45 | % | 413,588 | 1,250 | 0.40 | % | ||||||||
| Total interest-bearing deposits | 5,087,662 | 15,407 | 0.40 | % | 5,143,480 | 16,658 | 0.43 | % | ||||||||
| Borrowings | ||||||||||||||||
| Advances from the FHLBB | 207,090 | 2,376 | 1.51 | % | 284,540 | 3,185 | 1.48 | % | ||||||||
| Subordinated debentures and notes | 83,952 | 3,801 | 6.04 | % | 83,802 | 3,726 | 5.93 | % | ||||||||
| Other borrowed funds | 108,337 | 458 | 0.57 | % | 80,960 | 103 | 0.17 | % | ||||||||
| Total borrowings | 399,379 | 6,635 | 2.19 | % | 449,302 | 7,014 | 2.06 | % | ||||||||
| Total interest-bearing liabilities | 5,487,041 | 22,042 | 0.54 | % | 5,592,782 | 23,672 | 0.57 | % | ||||||||
| Non-interest-bearing liabilities: | ||||||||||||||||
| Demand checking accounts | 1,891,698 | 1,752,640 | ||||||||||||||
| Other non-interest-bearing liabilities | 180,842 | 230,834 | ||||||||||||||
| Total liabilities | 7,559,581 | 7,576,256 | ||||||||||||||
| Stockholders’ equity | 984,888 | 960,804 | ||||||||||||||
| Total liabilities and equity | $ | 8,544,469 | $ | 8,537,060 | ||||||||||||
| Net interest income (tax-equivalent basis) /Interest-rate spread (4) | 219,900 | 3.43 | % | 211,072 | 3.29 | % | ||||||||||
| Less adjustment of tax-exempt income | 159 | 160 | ||||||||||||||
| Net interest income | $ | 219,741 | $ | 210,912 | ||||||||||||
| Net interest margin (5) | 3.62 | % | 3.48 | % | ||||||||||||
| (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, | ||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Reconciliation Table - Non-GAAP Financial Information | (Dollars in Thousands Except Share Data) | ||||||||||||||
| Net income | $ | 30,149 | $ | 28,839 | $ | 80,049 | $ | 86,895 | |||||||
| Less: | |||||||||||||||
| Security gains (losses) (after-tax) | — | — | — | (4 | ) | ||||||||||
| Add: | |||||||||||||||
| Merger and acquisition expenses (after-tax) | 872 | — | 1,240 | — | |||||||||||
| Operating earnings | $ | 31,021 | $ | 28,839 | $ | 81,289 | $ | 86,899 | |||||||
| Operating earnings per common share: | |||||||||||||||
| Basic | $ | 0.40 | $ | 0.37 | $ | 1.05 | $ | 1.11 | |||||||
| Diluted | 0.40 | 0.37 | 1.05 | 1.11 | |||||||||||
| Weighted average common shares outstanding during the period: | |||||||||||||||
| Basic | 76,779,038 | 78,000,261 | 77,159,356 | 78,097,600 | |||||||||||
| Diluted | 77,007,971 | 78,240,633 | 77,448,290 | 78,371,190 | |||||||||||
| Return on average assets * | 1.40 | % | 1.38 | % | 1.25 | % | 1.36 | % | |||||||
| Add: | |||||||||||||||
| Merger and acquisition expenses (after-tax) * | 0.04 | % | — | % | 0.02 | % | — | % | |||||||
| Operating return on average assets * | 1.44 | % | 1.38 | % | 1.27 | % | 1.36 | % | |||||||
| Return on average tangible assets * | 1.43 | % | 1.41 | % | 1.27 | % | 1.38 | % | |||||||
| Add: | |||||||||||||||
| Merger and acquisition expenses (after-tax) * | 0.04 | % | — | % | 0.02 | % | — | % | |||||||
| Operating return on average tangible assets * | 1.47 | % | 1.41 | % | 1.29 | % | 1.38 | % | |||||||
| Return on average stockholders' equity * | 12.29 | % | 11.79 | % | 10.84 | % | 12.06 | % | |||||||
| Add: | |||||||||||||||
| Merger and acquisition expenses (after-tax) * | 0.36 | % | — | % | 0.17 | % | — | % | |||||||
| Operating return on average stockholders' equity * | 12.65 | % | 11.79 | % | 11.01 | % | 12.06 | % | |||||||
| Return on average tangible stockholders' equity * | 14.72 | % | 14.15 | % | 12.98 | % | 14.53 | % | |||||||
| Add: | |||||||||||||||
| Merger and acquisition expenses (after-tax) * | 0.43 | % | — | % | 0.20 | % | — | % | |||||||
| Operating return on average tangible stockholders' equity * | 15.15 | % | 14.15 | % | 13.18 | % | 14.53 | % | |||||||
| * Ratios at and for the three and nine months ended are annualized. | |||||||||||||||
| At and for the Three Months Ended | |||||||||||||||
| September 30, 2022 | June 30, 2022 | March 31, 2022 | December 31, 2021 | September 30, 2021 | |||||||||||
| (Dollars in Thousands) | |||||||||||||||
| Net income, as reported | $ | 30,149 | $ | 25,195 | $ | 24,705 | $ | 28,545 | $ | 28,839 | |||||
| Average total assets | $ | 8,586,420 | $ | 8,515,330 | $ | 8,531,043 | $ | 8,462,231 | $ | 8,360,635 | |||||
| Less: Average goodwill and average identified intangible assets, net | 162,387 | 162,507 | 162,632 | 162,804 | 163,011 | ||||||||||
| Average tangible assets | $ | 8,424,033 | $ | 8,352,823 | $ | 8,368,411 | $ | 8,299,427 | $ | 8,197,624 | |||||
| Return on average tangible assets (annualized) | 1.43 | % | 1.21 | % | 1.18 | % | 1.38 | % | 1.41 | % | |||||
| Average total stockholders’ equity | $ | 981,379 | $ | 976,167 | $ | 997,293 | $ | 987,522 | $ | 978,371 | |||||
| Less: Average goodwill and average identified intangible assets, net | 162,387 | 162,507 | 162,632 | 162,804 | 163,011 | ||||||||||
| Average tangible stockholders’ equity | $ | 818,992 | $ | 813,660 | $ | 834,661 | $ | 824,718 | $ | 815,360 | |||||
| Return on average tangible stockholders’ equity (annualized) | 14.72 | % | 12.39 | % | 11.84 | % | 13.84 | % | 14.15 | % | |||||
| Total stockholders’ equity | $ | 963,618 | $ | 968,496 | $ | 981,935 | $ | 995,342 | $ | 978,452 | |||||
| Less: | |||||||||||||||
| Goodwill | 160,427 | 160,427 | 160,427 | 160,427 | 160,427 | ||||||||||
| Identified intangible assets, net | 1,902 | 2,022 | 2,142 | 2,276 | 2,484 | ||||||||||
| Tangible stockholders' equity | $ | 801,289 | $ | 806,047 | $ | 819,366 | $ | 832,639 | $ | 815,541 | |||||
| Total assets | $ | 8,695,708 | $ | 8,514,230 | $ | 8,633,736 | $ | 8,602,622 | $ | 8,312,649 | |||||
| Less: | |||||||||||||||
| Goodwill | 160,427 | 160,427 | 160,427 | 160,427 | 160,427 | ||||||||||
| Identified intangible assets, net | 1,902 | 2,022 | 2,142 | 2,276 | 2,484 | ||||||||||
| Tangible assets | $ | 8,533,379 | $ | 8,351,781 | $ | 8,471,167 | $ | 8,439,919 | $ | 8,149,738 | |||||
| Tangible stockholders’ equity to tangible assets | 9.39 | % | 9.65 | % | 9.67 | % | 9.87 | % | 10.01 | % | |||||
| Tangible stockholders' equity | $ | 801,289 | $ | 806,047 | $ | 819,366 | $ | 832,639 | $ | 815,541 | |||||
| Number of common shares issued | 85,177,172 | 85,177,172 | 85,177,172 | 85,177,172 | 85,177,172 | ||||||||||
| Less: | |||||||||||||||
| Treasury shares | 7,730,945 | 7,995,888 | 7,037,464 | 7,037,464 | 7,034,754 | ||||||||||
| Unallocated ESOP shares | 4,833 | 11,442 | 18,051 | 24,660 | 31,278 | ||||||||||
| Unvested restricted shares | 601,995 | 497,297 | 500,098 | 500,098 | 502,808 | ||||||||||
| Number of common shares outstanding | 76,839,399 | 76,672,545 | 77,621,559 | 77,614,950 | 77,608,332 | ||||||||||
| Tangible book value per common share | $ | 10.43 | $ | 10.51 | $ | 10.56 | $ | 10.73 | $ | 10.51 | |||||
A PDF accompanying this announcement is available at http://ml.globenewswire.com/Resource/Download/031ad902-91b3-4942-a0b8-d7d843d566b8
