Brookline Bancorp Inc. (BRKL, Financial) filed Quarterly Report for the period ended 2012-03-31.
Brookline Bc has a market cap of $633.3 million; its shares were traded at around $9.06 with a P/E ratio of 17.7 and P/S ratio of 4.4. The dividend yield of Brookline Bc stocks is 3.8%. Brookline Bc had an annual average earning growth of 3.1% over the past 10 years. GuruFocus rated Brookline Bc the business predictability rank of 2-star.
The investment portfolio provides the Company a source of short-term liquidity and acts as a counterbalance to loan and deposit flows. During the first three months of 2012, the Company did not purchase any securities available-for-sale compared to $25.6 million during the same period in 2011. Maturities, calls and principal repayments totaled $67.8 million for the three months ended March 31, 2012 compared to $25.8 million for the same period in 2011. Additionally, in the first three months of 2012, the Company did not sell any securities available-for-sale compared to sales of $0.1 million and gains of $0.1 million for the same period in 2011.
During the first quarter 2012 net interest income increased by $15.1 million, or 53.0%, and the net interest margin increased by 9 basis points (bps) as compared to the fourth quarter of 2011. This is primarily due to the acquisition of BankRI in the first quarter of 2012, which accounted for $13.6 million of the increase, and a corresponding increase in the average balance of interest-earning assets and interest-bearing liabilities. The average balance of interest-earning assets in the first quarter of 2012 increased by $1.5 billion from the fourth quarter of 2011 while the average balance of interest-bearing liabilities increased by $1.3 billion in the same period. Additionally, cost of interest-bearing liabilities declined 18 bps while the yield of interest-earning assets declined only 5 bps for the first quarter of 2012 as compared to the fourth quarter 2011.
Compared to the first quarter of 2011, net interest income increased $17.7 million in the first quarter of 2012, $13.6 million of which related to the acquisition of BankRI, and the net interest margin increased by 10 bps on a linked-quarter basis. The increase in net interest margin was driven by numerous factors: an increase in average interest-earning assets of $1.8 billion in the first quarter of 2012, the continued decline in the Companys loan-to-deposit ratio, an increase in the mix of deposits to total borrowings and of core deposits to total deposits, a $0.4 million loan prepayment fee received in the first quarter of 2012 and recorded as interest income in accordance with GAAP, and $1.1 million in discount accretion associated with loans acquired in the BankRI acquisition. As a result, the cost of interest-bearing liabilities decreased in the first quarter of 2012 as compared to the first quarter of 2011 by 38 bps from 1.40% to 1.02% quarter-over-quarter while the yield from interest-earning assets declined by only 18 bps.
Non-interest income was up $2.5 million compared to the first quarter of 2011. The increase is primarily due to the acquisition of BankRI, which accounts for $1.4 million of the increase and the inclusion of First Ipswich for the full quarter in 2012. The increase was slightly offset by an increase in losses from tax-beneficial investments in affordable housing projects and lower gains on sales of securities in the first quarter of 2012.
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Brookline Bc has a market cap of $633.3 million; its shares were traded at around $9.06 with a P/E ratio of 17.7 and P/S ratio of 4.4. The dividend yield of Brookline Bc stocks is 3.8%. Brookline Bc had an annual average earning growth of 3.1% over the past 10 years. GuruFocus rated Brookline Bc the business predictability rank of 2-star.
Highlight of Business Operations:
As the interest-rate swaps associated with this program do not meet hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. As of March 31, 2012, the Company had 10 interest-rate swaps with an aggregate notional amount of $33.8 million related to this program. During the three months ended March 31, 2012, the Company recognized net gains of $24,000 related to changes in the fair value of these swaps.The investment portfolio provides the Company a source of short-term liquidity and acts as a counterbalance to loan and deposit flows. During the first three months of 2012, the Company did not purchase any securities available-for-sale compared to $25.6 million during the same period in 2011. Maturities, calls and principal repayments totaled $67.8 million for the three months ended March 31, 2012 compared to $25.8 million for the same period in 2011. Additionally, in the first three months of 2012, the Company did not sell any securities available-for-sale compared to sales of $0.1 million and gains of $0.1 million for the same period in 2011.
During the first quarter 2012 net interest income increased by $15.1 million, or 53.0%, and the net interest margin increased by 9 basis points (bps) as compared to the fourth quarter of 2011. This is primarily due to the acquisition of BankRI in the first quarter of 2012, which accounted for $13.6 million of the increase, and a corresponding increase in the average balance of interest-earning assets and interest-bearing liabilities. The average balance of interest-earning assets in the first quarter of 2012 increased by $1.5 billion from the fourth quarter of 2011 while the average balance of interest-bearing liabilities increased by $1.3 billion in the same period. Additionally, cost of interest-bearing liabilities declined 18 bps while the yield of interest-earning assets declined only 5 bps for the first quarter of 2012 as compared to the fourth quarter 2011.
Compared to the first quarter of 2011, net interest income increased $17.7 million in the first quarter of 2012, $13.6 million of which related to the acquisition of BankRI, and the net interest margin increased by 10 bps on a linked-quarter basis. The increase in net interest margin was driven by numerous factors: an increase in average interest-earning assets of $1.8 billion in the first quarter of 2012, the continued decline in the Companys loan-to-deposit ratio, an increase in the mix of deposits to total borrowings and of core deposits to total deposits, a $0.4 million loan prepayment fee received in the first quarter of 2012 and recorded as interest income in accordance with GAAP, and $1.1 million in discount accretion associated with loans acquired in the BankRI acquisition. As a result, the cost of interest-bearing liabilities decreased in the first quarter of 2012 as compared to the first quarter of 2011 by 38 bps from 1.40% to 1.02% quarter-over-quarter while the yield from interest-earning assets declined by only 18 bps.
Non-interest income was up $2.5 million compared to the first quarter of 2011. The increase is primarily due to the acquisition of BankRI, which accounts for $1.4 million of the increase and the inclusion of First Ipswich for the full quarter in 2012. The increase was slightly offset by an increase in losses from tax-beneficial investments in affordable housing projects and lower gains on sales of securities in the first quarter of 2012.
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