Brookline Bancorp Announces 2006 Fourth Quarter and Annual Earnings and Dividend Declarations.BROOKLINE, Mass. -- In final table, center column header (1) In a disk or tape file, a set of data that resides permanently at the beginning. It may be used for identification only (type of file, date of last update, etc.), or it may describe the structural layout of the contents, as is common with many document and database formats. should read At September 30, 2006 (sted At December 30, 2006). The corrected release reads: BROOKLINE BANCORP ANNOUNCES 2006 FOURTH QUARTER AND ANNUAL EARNINGS AND DIVIDEND DECLARATIONS Brookline Bancorp, Inc. (the "Company") (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :BRKL) announced today its earnings for the 2006 fourth quarter and year and approval by its Board of Directors of a regular quarterly dividend of $0.085 per share and an extra dividend of $0.20 per share payable February 16, 2007 to stockholders of record on February 2, 2007. The Company earned $5,377,000, or $0.09 per share on a basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis, for the quarter ended December 31, 2006 compared to $5,536,000, or $0.09 per share on a basic and diluted basis, for the quarter ended December 31, 2005. The 2005 quarter included a gain of $322,000 ($187,000 on an after-tax basis After-tax basis The comparison basis used to analyze the net after-tax returns on a corporate taxable bond and a municipal tax-free bond. ) from the sale of a building and a foreclosed property. In the 2006 quarter, the adverse consequences on operating results of an inverted yield curve Inverted Yield Curve Usually a chart showing long-term debt instruments that have lower yields than short-term debt instruments. It is sometimes referred to as a negative yield curve. environment was softened soft·en v. soft·ened, soft·en·ing, soft·ens v.tr. 1. To make soft or softer. 2. To undermine or reduce the strength, morale, or resistance of. 3. by the additional earnings resulting from the purchase of a controlling interest controlling interest The ownership of a quantity of outstanding corporate stock sufficient to control the actions of the firm. Controlling interest often involves ownership of significantly less than 51% of a firm's outstanding stock because many owners fail in Eastern Funding LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control ("Eastern") on April 13, 2006 and a lower provision for loan losses. Net income for the year ended December 31, 2006 was $20,812,000, or $0.34 per share on a basic and diluted basis, compared to $22,030,000, or $0.37 per share ($0.36 per share on a diluted basis), for the year ended December 31, 2005. Included in net income were after-tax securities gains of $358,000 in 2006 and $547,000 in 2005. Excluding securities gains, the $1,029,000, or 4.8%, decline in net income was attributable to a $1,383,000 ($805,000 on an after-tax basis) reduction in mortgage loan prepayment Prepayment 1. The payment of a debt obligation prior to its due date. 2. The excess payment over a scheduled debt repayment amount. Notes: 1. Examples include deferred expenses such as rent and early loan repayments. 2. fees in 2006 compared to 2005 and the adverse consequences of the inverted yield curve environment. Interest rate spread has been declining steadily from 2.59% in the 2005 first quarter to 2.33% in the 2005 fourth quarter and 2.06% in the 2006 fourth quarter. The trend in net interest margin was similar to that in interest rate spread, although less pronounced in the degree of decline. Net interest margin declined from 3.31% in the 2005 first quarter to 3.19% in the 2005 fourth quarter and 3.12% in the 2006 fourth quarter. Net interest margin was aided in the last three quarters of 2006 by inclusion of the higher yielding Eastern loan portfolio. Improvement in interest rate spread and net interest margin will continue to be difficult to achieve until the slope in the yield curve commences an upward movement. Interest income was 24% higher in the 2006 fourth quarter and year than in the 2005 fourth quarter and year. Net interest income, however, increased only 5% and 3%, respectively, as interest expense rose 53% between the quarterly periods and 60% between the years. The dramatic increase in interest expense resulted from a rising interest rate environment triggered by rate setting actions of the Federal Reserve, increased competition for deposits and a shift in the mix of deposits. Customarily, higher rates are paid on certificates of deposit than on transaction deposit accounts. Certificates of deposit comprised 61% of total retail deposits at December 31, 2006 compared to 55% at December 31, 2005 and 41% at December 31, 2004. As to asset yields, rates earned on mortgage loans generally are higher than the rates earned on most of the Company's other interest-earning assets. Over the past year, mortgage loan pricing has been subjected to increased competitive pressure and, as a result, it has been increasingly difficult to incorporate the rise in funding costs into the pricing of new loan originations The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. . Due in part to this development, the average balance of mortgage loans outstanding was $28 million less in the 2006 fourth quarter than in the 2006 third quarter and $19 million less in the year 2006 than in the year 2005. Offsetting part of the decline in mortgage loan income was interest income from the indirect automobile and Eastern loan portfolios. Indirect automobile loans outstanding grew from $369 million at the end of 2004 to $459 million at the end of 2005 and $540 million at the end of 2006. The average yield earned on that portfolio grew from 4.30% in 2005 to 5.17% in 2006; the average yield in the 2006 fourth quarter rose to 5.58%. Eastern loans outstanding at December 31, 2006 were $127 million and the average yield earned on the Eastern portfolio since the acquisition in April 2006 was 10.83%. Eastern, which specializes in the financing of coin-operated laundry, dry cleaning dry cleaning, process of cleaning fabrics without water. Special solvents and soaps are used so as not to harm fabrics and dyes that will not withstand the effects of ordinary soap and water. Dry cleaning began in France about the middle of the 19th cent. and grocery store equipment in the greater metropolitan New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of area and selected other locations in the Northeast, is 86.7% owned by the Company. The provision for loan losses was $129,000 in the 2006 fourth quarter compared to $840,000 in the 2005 fourth quarter and $2,549,000 in the year 2006 compared to $2,483,000 in the year 2005. The provision for loan losses is comprised of amounts relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the indirect automobile loan portfolio, the Eastern loan portfolio and the remainder of the Company's loan portfolio. The provision for loan losses related to the indirect automobile loan portfolio was $744,000 and $840,000, respectively, in the 2006 and 2005 quarters and $3,098,000 and $2,859,000, respectively, in 2006 and 2005. These amounts exceeded net charge-offs which amounted to $1,839,000 (0.35% of average loan balances outstanding) in the year 2006 and $1,358,000 (0.32%) in the year 2005. Loans delinquent delinquent 1) adj. not paid in full amount or on time. 2) n. short for an underage violator of the law as in juvenile delinquent. DELINQUENT, civil law. He who has been guilty of some crime, offence or failure of duty. 30 days or more were $7.1 million, or 1.31% of loans outstanding at the end of 2006 compared to $5.9 million, or 1.28% of loans outstanding at the end of 2005. The allowance for loan losses related to indirect automobile loans increased from $2.9 million (0.64% of the portfolio) at December 31, 2005 to $4.2 million (0.77% of the portfolio) at December 31, 2006. The provision for loan losses related to the Eastern portfolio was $435,000 in the 2006 fourth quarter and $851,000 since the acquisition. Net charge-offs in those periods were $442,000 and $515,000, respectively. Loans delinquent 30 days and over were $1.4 million, or 1.13% of loans outstanding at December 31, 2006. Regarding the remainder of the Company's loan portfolio, a credit to the provision for loan losses of $1,050,000 was taken to income in the 2006 fourth quarter and credits of $1,400,000 and $375,000 were taken to income in the years 2006 and 2005, respectively. (There was no provision or credit to loan losses in the 2005 fourth quarter). The credits resulted from reduction in outstanding loans through pay down (including loans classified as higher credit risk loans) and a reduction in the reserve factor applied to the multi-family mortgage loan portfolio from 1.25% to 1.00%. That change, which was made after consideration of a number of factors including loss experience, pay down of the portfolio and current market conditions, resulted in an $828,000 reduction in the allocated portion of the allowance for loan losses at December 31, 2006. At December 31, 2006, the Company transferred $1,286,000 out of the allowance for loan losses to other liabilities other liabilities Small and relatively insignificant liabilities. For financial reporting purposes, firms often combine small liabilities into this single category rather than listing each liability separately. to conform with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting . The transfer had no effect on earnings. The amount represents the allowance for estimated losses on unfunded loan commitments Unfunded loan commitments are those commitments made by a Financial institution that are contractual obligations for future funding. They should not be confused with Letters of credit which require certain trigger events before funding is needed. . The decline in non-interest income from $5,297,000 in the year 2005 to $3,850,000 in the year 2006 was due primarily to the decrease in gains from the sales of assets mentioned earlier, less fees from prepayment of mortgage loans, as well as lower earnings from Eastern before the Company's increase in ownership. Non-interest expenses in the year 2005 included $894,000 of merger/conversion expenses related to the acquisition of Mystic Mystic, rivers, United States Mystic. 1 River, c.10 mi (16 km) long, rising in SE Conn. and flowing S past Old Mystic and Mystic villages to the Long Island Sound. Mystic Seaport, a maritime museum, is at its mouth. 2 River, c. Financial, Inc. Excluding those expenses, the increases in non-interest expenses in the 2006 quarterly and yearly periods compared to the 2005 quarterly and yearly periods were due primarily to the inclusion of Eastern's expenses since the date of acquisition, the expenses related to the opening of a new branch in April 2006, the hiring of new loan officers, and higher processing and servicing costs resulting from growth of the indirect automobile loan portfolio. The extra dividend of $0.20 per share to be paid on February 16, 2007 is the eighth time since August 2003 that the Board of Directors has approved such a payment. The aggregate amount paid, over $96 million or $1.60 per share, represents a return of capital to stockholders (subject to taxation) rather than a distribution of earnings. The payout pay·out n. 1. The act or an instance of paying out. 2. A percentage of corporate earnings that is paid as dividends to shareholders. of semi-annual extra dividends has been an effective means of reducing the Company's excess capital in a measured way and treating all stockholders equally. While it is the intent of the Board of Directors to continue to return capital to stockholders through payment of an extra dividend semi-annually, the magnitude of any future payment will be considered in light of changing opportunities to deploy capital effectively, including the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of Company common stock and expansion of the Company's business through acquisitions. The above text contains statements about future events that constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Projections about future events are subject to risks and uncertainties that could cause actual results to differ. Factors that could cause such differences include, but are not limited to, general economic conditions, changes in interest rates, regulatory considerations and competition. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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