Condensed Parent Company Financial Statements

12 Months Ended

Dec. 31, 2019

Condensed Financial Information Disclosure [Abstract]

Condensed Parent Company Financial Statements

Condensed Parent Company Balance Sheets as of December 31, 2019 and 2018 and Statements of Income for the years ended December 31, 2019, 2018 and 2017 are as follows. The Statement of Stockholders' Equity is not presented below as the parent company's stockholders' equity is that of the consolidated company.

Balance Sheets



	At December 31,
	2019			2018
	(In Thousands)
ASSETS
Cash and due from banks	$	35,736		$	33,663
Short-term investments	33			33
Total cash and cash equivalents	35,769			33,696
Equity securities held-for-trading	2,569			3,235
ESOP loan to Brookline Bank	752			1,002
Intercompany loan to Brookline Bank	30,000			40,000
Restricted equity securities	252			101
Premises and equipment, net	2,403			4,318
Deferred tax asset	1,742			1,499
Investment in subsidiaries, at equity	924,352			864,798
Goodwill	35,267			35,267
Other assets	12,116			5,400
Total assets	$	1,045,222		$	989,316
LIABILITIES AND STOCKHOLDERS' EQUITY
Borrowed funds	$	83,591		$	83,433
Deferred tax liability	—			—
Accrued expenses and other liabilities	16,025			5,743
Total liabilities	99,616			89,176

Stockholders' equity:
Common stock, $0.01 par value; 200,000,000 shares authorized; 85,177,172 shares issued and 85,177,172 shares issued, respectively	852			852
Additional paid-in capital	736,601			755,629
Retained earnings, partially restricted	265,376			212,838
Accumulated other comprehensive loss	2,283			(9,460		)
Treasury stock, at cost; 5,003,127 shares and 5,020,025 shares, respectively	(59,073		)	(59,120		)
Unallocated common stock held by ESOP; 79,548 shares and 109,950 shares, respectively	(433		)	(599		)
Total stockholders' equity	945,606			900,140
Total liabilities and stockholders' equity	$	1,045,222		$	989,316

Statements of Income



	Year Ended December 31,
	2019			2018			2017
	(In Thousands)
Interest and dividend income:
Dividend income from subsidiaries	$	—		$	—		$	7,317
Marketable and restricted equity securities	147			37			—
ESOP loan to Brookline Bank	77			98			120
Intercompany loan to Brookline Bank	1,183			1,722			532
Total interest and dividend income	1,407			1,857			7,969
Interest expense:
Borrowed funds	5,274			5,223			5,123
Net interest income	(3,867		)	(3,366		)	2,846
Non-interest income:
Gain on securities, net	467			71			—
Other	—			16			—
Total non-interest income	467			87			—
Non-interest expense:
Compensation and employee benefits ⁽¹⁾	(507		)	345			391
Occupancy	1,589			1,586			1,584
Equipment and data processing ⁽¹⁾	(770		)	(798		)	(1,011		)
Directors' fees	461			417			453
Franchise taxes	306			321			180
Insurance	543			534			528
Professional services	548			364			470
Advertising and marketing	31			19			4
Merger and acquisition expense	—			452			411
Other ⁽¹⁾	(1,139		)	(1,140		)	(1,224		)
Total non-interest expense	1,062			2,100			1,786
Loss before income taxes	(4,462		)	(5,379		)	1,060
Credit for income taxes	(969		)	(1,976		)	(1,944		)
Loss before equity in undistributed income of subsidiaries	(3,493		)	(3,403		)	3,004
Equity in undistributed income of subsidiaries	91,210			86,465			47,514
Net income	$	87,717		$	83,062		$	50,518

_______________________________________________________________________________

(1) The Parent Company received a net benefit in 2019, 2018 and 2017 from the intercompany allocation of expense that is eliminated in consolidation.

Statements of Cash Flows



	Year Ended December 31,
	2019			2018			2017
	(In Thousands)
Cash flows from operating activities:
Net income attributable to parent company	$	87,717		$	83,062		$	50,518
Adjustments to reconcile net income to net cash provided from operating activities:
Equity in undistributed income of subsidiaries	(91,210		)	(86,465		)	(47,514		)
Depreciation of premises and equipment	2,824			3,073			2,856
Amortization of debt issuance costs	100			100			100
Equity securities held-for-trading	666			(3,235		)	—
Other operating activities, net	47,296			(31,014		)	(5,885		)
Net cash provided from (used for) operating activities	47,393			(34,479		)	75
Cash flows from investing activities:
Repayment of ESOP loan by Brookline Bank	250			250			250
Pay down (issuance) of intercompany loan to Brookline Bank	10,000			40,000			(80,000		)
Purchase of restricted equity securities	(151		)	(1		)	—
Purchase of premises and equipment	(909		)	(1,359		)	(1,942		)
Net cash provided from (used for) investing activities	9,190			38,890			(81,692		)
Cash flows from financing activities:
Proceeds from issuance of common stock	—			—			81,943
Common stock issued for acquisition	—			55,183			—
Redemption of noncontrolling interest in subsidiary	(18,470		)	—			—
Payment of dividends to owners of noncontrolling interest in subsidiary	(930		)	—			—
Payment of dividends on common stock	(35,110		)	(31,441		)	(27,035		)
Net cash (used for) provided from financing activities	(54,510		)	23,742			54,908
Net increase (decrease) in cash and cash equivalents	2,073			28,153			(26,709		)
Cash and cash equivalents at beginning of year	33,696			5,543			32,252
Cash and cash equivalents at end of year	$	35,769		$	33,696		$	5,543
Supplemental disclosures of cash flow information:
Acquisition of First Commons Bank, N.A.:
Fair value of assets acquired, net of cash and cash equivalents acquired	$	—		$	292,025		$	—
Fair value of liabilities assumed	—			278,988			—