STRENGTH THAT MAKES A DIFFERENCE

Transcription

1 STRENGTH THAT MAKES A DIFFERENCE

2 DEAR STOCKHOLDERS: I am pleased to present to you Brookline Bancorp, Inc. s. We have completed another year of steady growth in our key businesses by staying true to our principles and core strategies. As a fully integrated multi-bank holding company consisting of three banks and several specialized lending subsidiaries, we closed out 2013 with assets of $5.3 billion, excellent credit quality and a remarkably strong balance sheet. Sustainable and prudent lending is at the heart of our business. In 2013 we saw steady loan growth of 5% over Our loan portfolio mix is more advantageous as well, with an increased share of assets falling within commercial lines of business particularly in our commercial real estate banking groups. To help manage our margins, we have strategically reallocated capital from lower-margin businesses to those with healthier spreads ones with greater ability to re-price should we experience rising rates. The overall strength we have continued to see in lending is something I believe can be sustained in the coming year and beyond. Despite this increased loan volume, we take pride in having maintained our disciplined underwriting heritage. The allowance for loan and lease losses remained strong, increasing to 1.11% at the close of Charge-offs were significantly lower than in previous years and remain at low levels. While the banking industry has enjoyed lower loan losses in general, strong credit performance is a long-standing characteristic of Brookline Bancorp. Strong deposit growth continued as well in 2013, with an increase of over 11% in core deposits. Our mix of core to total deposits ended the year at 76%, helping us improve our funding base which is so important to our net interest margin. As I look ahead, I see the business environment for banks, large and small, continuing to be a challenging one as it has been for over seven years now. Margin pressures and the ever increasing regulatory environment have been difficult. In the face of these challenges, we have done and will continue to do what we do best: lend and invest in the regions and industry segments that we know best, and build high-value, lasting relationships with our customers. As you will see in the following pages, this practice has not only kept our franchise and balance sheet strong, it has benefited the markets we serve in ways that go far beyond financial transactions. Sincerely yours, Paul A. Perrault Chief Executive Officer

3 Brookline Bancorp, Inc. DOING WHAT WE DO BEST At Brookline Bancorp, we have continued to leverage our strengths during years that have proven challenging to the banking industry. This steadfast practice has enabled us to build upon a strong foundation of lending and investing in our region. It has also allowed us to go beyond immediate bottom-line results and consider the larger impact our banking relationship has on a customer, a business or even an entire community. The effect can be far reaching and even that much more rewarding. The following vignettes demonstrate how, by consistently and successfully doing what we do best, a greater good follows. 1

4 Brookline Bancorp, Inc. FINANCIAL HIGHLIGHTS in thousands, except per share amounts FOR OR AT DECEMBER Loans and leases, gross $ 4,375,837 $ 4,178,945 Allowance for loan and lease losses 48,473 41,152 Non-performing assets 18,108 23,737 Deposits 3,835,006 3,616,259 Stockholders equity 613, ,097 Total assets 5,325,106 5,147,534 Net interest income 176, ,368 Provision for credit losses 10,929 15,888 Net income 35,386 37,142 Net operating income 35,981 41,114 PER SHARE DATA Diluted earnings $ 0.51 $ 0.53 Diluted operating earnings Dividends paid Book value PERFORMANCE RATIOS Return on average assets 0.68% 0.74% Return on average tangible stockholders equity 7.71% 8.40% Net interest margin (1) 3.64% 3.85% Stockholders equity to total assets 11.53% 11.89% Non-performing assets to total assets 0.34% 0.46% Allowance for loan and lease losses to total loans and leases 1.11% 0.99% (1) Calculated on a fully taxable equivalent basis.

5 Brookline Bancorp, Inc. NET INCOME (millions of dollars) $45 $40 $35 $37.1 $35.4 $30 $25 $20 $15 $10 $5 $19.2 $26.9 $27.6 $ NET INTEREST MARGIN 4.5% 4.0% 3.74% 3.76% 3.85% 3.64% 3.5% 3.38% 3.0% 2.5% 2.0% NON-PERFORMING ASSETS TO TOTAL ASSETS 1.0% 0.8% 0.6% 0.46% 0.4% 0.29% 0.31% 0.27% 0.34% 0.2% 0% For more detailed information go to brooklinebancorp.com. The information presented herein is derived from the Company s Annual Report on Form 10-K filed with the SEC.

6 EBENEZER STANWOOD HOUSE IPSWICH, MASSACHUSETTS On North Main Street in Ipswich rests the Ebenezer Stanwood House. Built circa 1650, the Stanwood House is part of the town s Meeting House Green Historic District and listed in the Massachusetts Inventory of Historic Places. Uninhabited and neglected for over a decade, the Stanwood House is now the focus of two developers who plan on transforming the building s historic charm into housing with a future. 2

7 Brookline Bancorp, Inc. LENDING FOR THE FUTURE. PRESERVING A COMMUNITY S PAST. Historic roots mean something in Ipswich. The town is recognized as having more First Period houses still standing than any other community in America. With that in mind, David and Jeff Clarke of Clarke Associates, LLC are renovating the Stanwood House to create updated condominium-style housing while saving many of the First Period architectural aspects of the home. First Ipswich Bank connected with these two aspiring builders in 2006 and we ve been helping them ever since with construction loans and other banking services to build and restore our communities through projects like the Stanwood House. 3

8 JCHE SHILLMAN HOUSE FRAMINGHAM, MASSACHUSETTS Jewish Community Housing for the Elderly (JCHE) a non-profit, non-sectarian organization founded in 1965 provides affordable, safe housing for nearly 1,500 older adults. The Morton and Etta Shillman House, located in Framingham, opened in Like each of JCHE s four communities, it offers a dynamic and supportive environment that fosters independence, growth, connection and purpose. 4

9 Brookline Bancorp, Inc. INVESTING TO HELP SENIORS LIVE AFFORDABLY. In a long-standing and broad relationship with Brookline Bank, Jewish Community Housing for the Elderly (JCHE) has utilized a variety of our services as they have expanded over the years. When the time came to fund the construction of a significant new facility, JCHE looked to us. In conjunction with the Massachusetts Housing Investment Corporation (MHIC), Brookline Bank invested in Shillman House, receiving low-income housing tax credits in return. Working together, Brookline Bank has played a vital role in helping JCHE extend affordable, caring services to more seniors in more communities. 5

10 DANIELE, INC. MAPLEVILLE, RHODE ISLAND More than three decades ago, the Dukcevich family brought their business from Northern Italy to America. Today in Rhode Island, they continue to make some of the finest charcuterie in the world using the same European tradition of dry-curing their gourmet Italian food products. Locally run, Daniele, Inc. s Del Duca branded products are now enjoyed the world over. 6

11 Brookline Bancorp, Inc. SUPPORTING FAMILY-RUN BUSINESSES BY FUELING THEIR GROWTH. The story of Daniele, Inc. is one steeped in family history, perseverance and success. It s the story of the founders son who moved to Rhode Island to grow the family business. The company did grow, expanding their offerings and distribution while building two plants employing nearly 300 people. With construction and equipment loans, Bank Rhode Island is helping the family s third generation expand yet again with a new 300,000-square-foot, state-of-the-art extension due to be completed in the fall of Our commitment to growing companies benefits our clients, our communities, and in the case of Daniele, Inc., dinner tables everywhere. 7

12 Brookline Bancorp, Inc. BROOKLINE BANCORP, INC. BOARD OF DIRECTORS David C. Chapin John J. Doyle, Jr. Margaret Boles Fitzgerald John A. Hackett John L. Hall, II Thomas J. Hollister Bogdan Nowak Charles H. Peck Paul A. Perrault Merrill W. Sherman Joseph J. Slotnik Chairman of the Board Rosamond B. Vaule Peter O. Wilde BROOKLINE BANCORP, INC. EXECUTIVE OFFICERS James M. Cosman Chief Operations Officer Sarah P. Merritt Chief of Human Resources Michael W. McCurdy General Counsel, Chief Risk Officer and Secretary Paul A. Perrault President and Chief Executive Officer M. Robert Rose Chief Credit Officer BANK RHODE ISLAND Mark J. Meiklejohn President and Chief Executive Officer BROOKLINE BANK Paul A. Perrault Chairman, President and Chief Executive Officer FIRST IPSWICH BANK Russell G. Cole President and Chief Executive Officer 8

13 STOCKHOLDER INFORMATION Brookline Bancorp, Inc. is the parent corporation of Bank Rhode Island, Brookline Bank and First Ipswich Bank. Brookline Bancorp, Inc. common stock trades on the NASDAQ stock market under the symbol BRKL. NOTICE OF STOCKHOLDERS MEETING The Annual Meeting of the Stockholders of Brookline Bancorp, Inc. will be held at 11:00 a.m. on May 7, 2014, at The Charles Hotel, One Bennett Street, Cambridge, MA TRANSFER AGENT Contact our stock transfer agent directly for assistance in changing your address, elimination of duplicate mailings, transferring stock, replacing lost, stolen or destroyed stock certificates, dividend reinvestment or dividend checks: American Stock Transfer & Trust Company th Avenue Brooklyn, NY (800) , (718) amstock.com FORM 10-K AND OTHER REPORTS Our Annual Report to the Securities and Exchange Commission (Form 10-K) and quarterly reports (Form 10-Q) may be obtained from: Brookline Bancorp, Inc. Corporate Finance 131 Clarendon Street PO Box Boston, MA or on the Company s website at brooklinebancorp.com COMMON STOCK INFORMATION Market prices for the Company s common stock and dividends paid per quarter during 2013 and 2012 follow. Dividend Paid Per 2013 High Low Share First Quarter $ 9.39 $ 8.66 $ Second Quarter Third Quarter Fourth Quarter Dividend Paid Per 2012 High Low Share First Quarter $ 9.78 $ 8.37 $ Second Quarter Third Quarter Fourth Quarter

14 Brookline Bancorp, Inc. 131 Clarendon Street PO Box Boston, Massachusetts (617) brooklinebancorp.com