Brook­line Ban­corp an­nounces Third Quar­ter net in­come of $11.4 mil­lion

The Pak Banker - - Front Page -

BROOK­LINE

Brook­line Ban­corp Inc to­day re­ported net in­come of $11.4 mil­lion, or $0.16 fully di­luted earn­ings per share (EPS), for the quar­ter ended Septem­ber 30, 2012. Net in­come for the nine months ended Septem­ber 30, 2012 was $25.3 mil­lion, or $0.36 fully di­luted EPS, com­pared to $20.5 mil­lion, or $0.35 fully di­luted EPS, for the first nine months of 2011.

Paul Per­rault, Pres­i­dent and Chief Ex­ec­u­tive Of­fi­cer of Brook­line Ban­corp, Inc., stated: "Our core busi­ness fun­da­men­tals re­main strong, with con­tin­ued growth in loans and de­posits in the third quar­ter. Net in­ter­est in­come has ben­e­fited from that growth and I'm happy to re­port that pro­vi­sions for loan and lease losses have re­turned to nor­mal lev­els. The sec­ond phase of our core sys­tem con­ver­sion was suc­cess­ful and we are look­ing for­ward to mov­ing into our new head­quar­ters over the week­end."

Net in­ter­est in­come for the third quar­ter 2012 in­creased $3.6 mil­lion to $46.4 mil­lion from $42.8 mil­lion in the sec­ond quar­ter of 2012 and $27.9 mil­lion in the third quar­ter 2011 as a re­sult of the ac­qui­si­tion of Ban­corp Rhode Is­land. An in­crease of $3.1 mil­lion in in­ter­est in­come on loans and leases ac­counts for the ma­jor­ity of the $3.6 mil­lion in­crease, with an in­crease in in­vest­ment in­come ac­count­ing for an­other $0.4 mil­lion of the in­crease in net in­ter­est in­come. In­ter­est ex­pense was flat for the third quar­ter 2012 as com­pared to the sec­ond quar­ter. In­cluded in in­ter­est in­come on loans and leases is $1.4 mil­lion of pe­ri­odic yield ad­just­ments on ac­quired loans as re­quired un­der GAAP. The re­main­ing $1.7 mil­lion in­crease in in­ter­est in­come on loans and leases is largely driven by growth in the lend­ing port­fo­lios. Net in­ter­est in­come for the first nine months of 2012 in­creased to $132.8 mil­lion from $81.7 mil­lion in the first nine months of 2011. Net in­ter­est mar­gin for the third quar­ter 2012 was 4.00 per­cent, up from 3.81 per­cent at June 30, 2012. The in­clu­sion of the $1.4 mil­lion of yield ad­just­ments in in­come ac­counted for 14 ba­sis points of the 19 ba­sis-point in­crease in net in­ter­est mar­gin for the third quar­ter 2012. The nor­mal­ized net in­ter­est mar­gin of 3.86 per­cent is up from 3.81 per­cent at June 30, 2012 largely as a re­sult of Brook­line Ban­corp's con­tin­u­ing ef­forts to main­tain loan yields in a per­sis­tently chal­leng­ing in­ter­e­strate en­vi­ron­ment. To­tal as­sets at Septem­ber 30, 2012 grew to $5.1 bil­lion, an an­nu­al­ized in­crease of 7.2 per­cent from the prior quar­ter and 60.3 per­cent from Septem­ber 30, 2011.

The loan and lease port­fo­lio grew to $4.1 bil­lion as of Septem­ber 30, 2012, up 13.3 per­cent an­nu­al­ized from the prior quar­ter and 14.2 per­cent an­nu­al­ized from De­cem­ber 31, 2011, af­ter ad­just­ment for the $1.1 bil­lion in loans and leases ac­quired from Ban­corp Rhode Is­land, Inc., on Jan­uary 1, 2012. The Com­pany con­tin­ued to ben­e­fit from strong growth in its com­mer­cial real es­tate and com- mer­cial loan and lease port­fo­lios, which reached $2.8 bil­lion, or 67.4 per­cent of to­tal loans, at Septem­ber 30, 2012. The com­mer­cial real es­tate and com­mer­cial loan and lease port­fo­lios in­creased 18.1 per­cent an­nu­al­ized dur­ing the third quar­ter 2012 and 21.5 per­cent an­nu­al­ized for the first nine months of 2012, af­ter ad­just­ment for the $0.8 bil­lion in com­mer­cial real es­tate and com­mer­cial loans and leases ac­quired from Ban­corp Rhode Is­land, to $2.8 bil­lion. These in­creases off­set the an­nu­al­ized 4.7 per­cent de­cline from June 30, 2012 to Septem­ber 30, 2012 in the in­di­rect au­to­mo­bile port­fo­lio, a de­cline that re­flected the Com­pany's se­lec­tive­ness in the in­ter­est rates at which it is will­ing to lend in a highly com­pet­i­tive mar­ket.

De­posits of $3.6 bil­lion at Septem­ber 30, 2012 were up 5.3 per­cent an­nu­al­ized from June 30, 2012 and 63.7 per­cent from Septem­ber 30, 2011. Core de­posits, which in­creased from 70.2 per­cent to 70.8 per­cent of de­posits quar­ter-to-quar­ter, in­creased 8.7 per­cent an­nu­al­ized in the third quar­ter 2012. De­mand check­ing ac­counts grew at an an­nu­al­ized rate of 32.3 per­cent dur­ing the quar­ter ended Septem­ber 30, 2012. To­tal bor­row­ings in­creased 17.2 per­cent on an an­nu­al­ized ba­sis to $0.8 bil­lion at Septem­ber 30, 2012. Cash and cash equiv­a­lents were $76.3 mil­lion as of Septem­ber 30, 2012 as com­pared to $217.1 mil­lion as of June 30, 2012, a de­crease that re­flects the re­de­ploy­ment of cash.

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