Brookline Bancorp, Inc. (BRKL) (the “Company”) today announced net income of $13.4 million, or $0.19 per basic and diluted share, for the first quarter of 2017, compared to $12.8 million, or $0.18 per basic and diluted share, for the first quarter of 2016.
Paul Perrault, President and Chief Executive Officer of the Company, stated: “Brookline Bancorp has experienced solid growth in the first quarter of 2017. We have continued to grow our loan and deposit balances in an intense and competitive market. Entering the second quarter, we look forward to building upon the foundation of success we have achieved as we continue to grow our franchise.”
BALANCE SHEET
Total assets at March 31, 2017 increased $59.6 million to $6.50 billion from $6.44 billion at December 31, 2016, and increased $316.7 million from $6.18 billion at March 31, 2016. At March 31, 2017, total loans and leases were $5.46 billion, representing an increase of $62.9 million from December 31, 2016, and an increase of $331.3 million from March 31, 2016. During the first quarter of 2017, total loans and leases grew 4.7 percent on an annualized basis. Solid loan growth continued in the commercial real estate and commercial loan and lease portfolios, which increased $57.6 million during the first quarter of 2017, or 5.2 percent on an annualized basis.
Investment securities at March 31, 2017 increased $18.4 million to $629.1 million, comprising 9.7 percent of total assets, as compared to $610.8 million, or 9.5 percent of total assets, at December 31, 2016, and increased approximately $9.5 million from $619.6 million, or 10.0 percent of total assets, at March 31, 2016.
Total deposits at March 31, 2017 increased $40.8 million to $4.65 billion from $4.61 billion at December 31, 2016 and increased $258.4 million from $4.39 billion at March 31, 2016. Core deposits, which consists of demand checking, NOW, savings, and money market accounts, decreased $8.8 million from December 31, 2016 and increased $276.0 million from March 31, 2016. The average cost of interest bearing deposits increased slightly to 56 basis points for the three months ended March 31, 2017 from 55 basis points for the three months ended December 31, 2016.
Total borrowings at March 31, 2017 increased $12.7 million to $1.06 billion from $1.04 billion at December 31, 2016 and increased $28.5 million from $1.03 billion at March 31, 2016.
The ratio of stockholders’ equity to total assets was 10.83 percent at March 31, 2017, as compared to 10.80 percent at December 31, 2016, and 11.01 percent at March 31, 2016, respectively. The ratio of tangible stockholders’ equity to tangible assets was 8.79 percent at March 31, 2017, as compared to 8.73 percent at December 31, 2016, and 8.83 percent at March 31, 2016.
NET INTEREST INCOME
Net interest income increased $1.2 million to $53.1 million during the first quarter of 2017 from the quarter ended December 31, 2016. The net interest margin increased 13 basis points to 353 basis points for the three months ended March 31, 2017.
NON-INTEREST INCOME
Non-interest income for the quarter ended March 31, 2017 increased $10.5 million to $15.9 million from $5.4 million for the quarter ended December 31, 2016.
The Company completed the sale of Community Bank System, Inc. (Ticker CBU) stock which it acquired pursuant to the terms of the merger between CBU and Northeast Retirement Services, Inc. (“NRS”). The Company, through its wholly owned subsidiary, Brookline Securities Corp., owned 9,721 shares of NRS stock, and received $319.04 in cash and 14.876 shares of CBU common stock for each share of NRS stock it held. The Company realized a gain of $11.4 million on the NRS investment.
PROVISION FOR CREDIT LOSSES
The Company recorded a provision for credit losses of $13.4 million for the quarter ended March 31, 2017, compared to $3.2 million for the quarter ended December 31, 2016. The increase in the provision for the quarter was driven primarily by $6.3 million in additional reserves on taxi medallion loans and a specific reserve of $4.2 million related to two commercial credits.
About Brookline Bancorp, Inc.
Brookline Bancorp, Inc. operates as a multi-bank holding company for Brookline Bank and its subsidiaries; Bank Rhode Island and its subsidiaries; First Ipswich Bank and its subsidiaries, and Brookline Securities Corp. As a commercially-focused financial institution with approximately 50 banking offices in greater Boston, the north shore of Massachusetts and Rhode Island, the Company offers commercial, business and retail banking services, including cash management products, online banking services, consumer and residential loans and investment services in central New England. The Company’s activities include acceptance of commercial; municipal and retail deposits; origination of mortgage loans on commercial and residential real estate located principally in Massachusetts and Rhode Island; origination of commercial loans and leases to small- and mid-sized businesses; investment in debt and equity securities, and the offering of cash management and investment advisory services.
