OREANDA-NEWS. April 21, 2016.  Brookline Bancorp, Inc. (NASDAQ: BRKL) (the "Company") today announced net income of \\$12.8 million, or \\$0.18 per basic and diluted share, for the first quarter of 2016, compared to \\$11.7 million, or \\$0.17 per basic and diluted share, for the first quarter of 2015.

Paul Perrault, President and Chief Executive Officer of the Company, stated: "I am pleased to report another good quarter in all areas of the Company. Most notably, we experienced solid growth in loans, deposits and revenues while holding expense levels.  Our asset quality remains strong and the Company continues to be well-capitalized. We look forward to the rest of the year with confidence."

BALANCE SHEET

Total assets at March 31, 2016 increased \\$138.7 million to \\$6.2 billion from \\$6.0 billion at December 31, 2015, and increased \\$425.9 million from \\$5.8 billion at March 31, 2015. The increase in total assets of 9.2 percent on an annualized basis during the first quarter of 2016 was primarily driven by increases in loans and leases. At March 31, 2016, total loans and leases were \\$5.1 billion, representing an increase of \\$134.9 million from December 31, 2015, and an increase of \\$495.9 million from March 31, 2015. During the first quarter of 2016, total loans and leases grew 10.8 percent on an annualized basis. Strong loan growth continued in the commercial real estate and commercial loan and lease portfolios, which increased \\$126.3 million during the first quarter of 2016, or 12.5 percent on an annualized basis.

Investment securities at March 31, 2016 increased \\$12.6 million to \\$619.6 million, or 10.0 percent of total assets, as compared to \\$607.0 million, or 10.0 percent of total assets, at December 31, 2015, and increased approximately \\$54.0 million from \\$565.6 million, or 9.8 percent of total assets, at March 31, 2015.

Total deposits at March 31, 2016 increased \\$87.4 million to \\$4.4 billion from \\$4.3 billion at December 31, 2015 and increased \\$278.7 million from \\$4.1 billion at March 31, 2015. Core deposits, which consist of demand checking, NOW, savings, and money market accounts, increased \\$67.2 million from December 31, 2015 and increased \\$222.1 million from March 31, 2015. Core deposits as a percentage of total deposits also increased slightly to 74.8 percent at March 31, 2016 from 74.7 percent at December 31, 2015 and increased from 74.4 percent at March 31, 2015. The average cost of interest bearing deposits increased slightly to 0.54 percent for the three months ended March 31, 2016 from 0.52 percent for the three months ended December 31, 2015.

Total borrowings at March 31, 2016 increased \\$45.3 million to \\$1.0 billion from \\$983.0 million at December 31, 2015 and increased \\$103.4 million from \\$924.9 million at March 31, 2015.

The ratio of stockholders' equity to total assets was 11.01 percent at March 31, 2016, as compared to 11.05 percent at December 31, 2015, and 11.32 percent at March 31, 2015, respectively. The ratio of tangible stockholders' equity to tangible assets was 8.83 percent at March 31, 2016, as compared to 8.81 percent at December 31, 2015, and 8.93 percent at March 31, 2015.

NET INTEREST INCOME

Net interest income decreased \\$0.9 million to \\$49.2 million during the first quarter of 2016 from the previous quarter and the net interest margin decreased 9 basis points to 3.45 percent. The prior quarter included the accelerated recognition of \\$1.0 million related to the prepayment of several acquired loans which contributed to the decline in net interest income for the quarter.

PROVISION FOR LOAN AND LEASE LOSSES

The Company recorded a provision for loan and lease losses of \\$2.3 million for the quarter ended March 31, 2016, compared to \\$1.7 million for the quarter ended December 31, 2015. The increase of \\$0.6 million quarter over quarter was primarily driven by the solid loan growth in the quarter.

Net charge-offs decreased \\$1.0 million to \\$0.4 million for the first quarter of 2016 from \\$1.4 million for the fourth quarter of 2015. The ratio of net charge-offs to average loans on an annualized basis decreased to 3 basis points for the first quarter of 2016 from 11 basis points for the fourth quarter of 2015.

The allowance for loan and lease losses represented 1.14 percent of total loans and leases at March 31, 2016, compared to 1.14 percent at December 31, 2015, and 1.19 percent at March 31, 2015. The allowance for loan and lease losses related to originated loans and leases as a percentage of originated loans and leases was 1.20 percent at March 31, 2016, compared to 1.20 percent at December 31, 2015, and 1.28 percent at March 31, 2015.

NON-INTEREST INCOME

Non-interest income for the quarter ended March 31, 2016 increased \\$0.4 million to \\$6.5 million from \\$6.1 million for the previous quarter. The increase was primarily driven by an increase of \\$0.3 million in gain on sales of loans and leases held-for-sale and an increase of \\$0.1 million due to loan level derivative mark to market adjustments recorded in other income.

NON-INTEREST EXPENSE

Non-interest expense for the quarter ended March 31, 2016 decreased \\$0.3 million to \\$32.1 million from \\$32.3 million for the quarter ended December 31, 2015. The Company's efficiency ratio improved to 57.57% at March 31, 2016, compared with 59.11% at March 31, 2015.

PROVISION FOR INCOME TAXES

The effective tax rate was 35.8 percent and 36.6 percent for the three months ended March 31, 2016 and March 31, 2015, respectively. The decrease in the effective tax rate was primarily driven by investments in municipal bonds and changes in state tax laws.

RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

The return on average assets increased during the first quarter of 2016 to 0.84 percent at March 31, 2016 from 0.80 percent at March 31, 2015. The return on average tangible assets increased to 0.86 percent for the first quarter of 2016 from 0.82 percent for the first quarter of 2015. 

The return on average stockholders' equity increased during the first quarter of 2016 to 7.57 percent from 7.22 percent for the first quarter of 2015. The return on average tangible stockholders' equity increased to 9.69 percent for the first quarter of 2016 from 9.41 percent for the first quarter of 2015.

ASSET QUALITY

The ratio of nonperforming loans and leases to total loans and leases was 0.62 percent at March 31, 2016 as nonperforming loans and leases increased \\$12.6 million to \\$31.9 million at December 31, 2015, a majority of which related to the restructure of taxi medallion loans during the quarter. Nonperforming assets increased \\$11.8 million to \\$32.5 million or 0.53 percent of total assets at March 31, 2016.

DIVIDEND DECLARED

The Company's Board of Directors approved a dividend of \\$0.09 per share for the quarter ended March 31, 2016. The dividend will be paid on May 20, 2016 to stockholders of record on May 6, 2016.

CONFERENCE CALL

The Company will conduct a conference call/webcast at 1:30 PM Eastern Standard Time on Thursday, April 21, 2016 to discuss the results for the quarter, business highlights and outlook. The call can be accessed by dialing 877-504-4120 (United States) or 412-902-6650 (internationally). A recorded playback of the call will be available for one week following the call at 877-344-7529 (United States) or 412-317-0088 (internationally). The passcode for the playback is 10083828. The call will be available live and in a recorded version on the Company's website under "Investor Relations" at www.brooklinebancorp.com.

ABOUT BROOKLINE BANCORP, INC.

Brookline Bancorp, Inc., a bank holding company with \\$6.2 billion in assets and branch locations in Massachusetts and Rhode Island, is headquartered in Boston, Massachusetts and operates as the holding company for Brookline Bank, Bank Rhode Island, and First Ipswich Bank (the "banks"). The Company provides commercial and retail banking services, cash management and investment services to customers throughout Central New England. More information about Brookline Bancorp, Inc. and its banks can be found at the following websites: www.brooklinebank.com, www.bankri.com, and www.firstipswich.com.

FORWARD-LOOKING STATEMENTS

Certain statements contained in this press release that are not historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties. The Company's actual results could differ materially from those projected in the forward-looking statements as a result of, among others, the risks outlined in the Company's Annual Report on Form 10-K, as updated by its Quarterly Reports on Form 10-Q and other filings submitted to the Securities and Exchange Commission ("SEC"). The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.

BASIS OF PRESENTATION

The Company's consolidated financial statements have been prepared in conformity with generally accepted accounting principles ("GAAP") as set forth by the Financial Accounting Standards Board in its Accounting Standards Codification and through the rules and interpretive releases of the SEC under the authority of federal securities laws. Certain amounts previously reported have been reclassified to conform to the current period's presentation.

NON-GAAP FINANCIAL MEASURES

The Company uses certain non-GAAP financial measures, such as the allowance for loan and lease losses related to originated loans and leases as a percentage of originated loans and leases, tangible book value per common share, tangible stockholders' equity to tangible assets, return on average tangible assets and return on average tangible stockholders' equity. These non-GAAP financial measures provide information for investors to effectively analyze financial trends of ongoing business activities, and to enhance comparability with peers across the financial services sector. A detailed reconciliation table of the Company's GAAP to the non-GAAP measures is attached.

Contact:           
Carl M. Carlson
Brookline Bancorp, Inc.
Chief Financial Officer
(617) 425-5331
ccarlson@brkl.com

BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Selected Financial Highlights (Unaudited)

At and for the Three Months Ended

March 31, 2016

December 31, 2015

September 30, 2015

June 30, 2015

March 31, 2015

(Dollars In Thousands Except per Share Data)

Earnings Data:








Net interest income

\\$           49,203

\\$                 50,078

\\$                   48,587

\\$        47,172

\\$           48,528

Provision for credit losses

2,378

1,520

1,755

1,913

2,263

Non-interest income

6,469

6,063

4,784

4,867

4,470

Non-interest expense

32,053

32,329

31,270

30,452

31,326

Income before provision for income taxes

21,241

22,292

20,346

19,674

19,409

Net income attributable to Brookline Bancorp, Inc.

12,812

13,327

12,888

11,865

11,703








Performance Ratios:








Net interest margin (1)

3.45 %

3.54 %

3.54 %

3.49 %

3.57 %

Interest-rate spread (1)

3.26 %

3.42 %

3.41 %

3.32 %

3.37 %

Return on average assets

0.84 %

0.89 %

0.89 %

0.82 %

0.80 %

Return on average tangible assets (non-GAAP)

0.86 %

0.92 %

0.91 %

0.85 %

0.82 %

Return on average stockholders' equity

7.57 %

7.99 %

7.81 %

7.24 %

7.22 %

Return on average tangible stockholders' equity (non-GAAP)

9.69 %

10.28 %

10.11 %

9.40 %

9.41 %

Efficiency ratio (2)

57.57 %

57.59 %

58.59 %

58.52 %

59.11 %








Per Common Share Data:








Net income — Basic

\\$               0.18

\\$                     0.19

\\$                       0.18

\\$            0.17

\\$               0.17

Net income — Diluted

0.18

0.19

0.18

0.17

0.17

Cash dividends declared

0.090

0.090

0.090

0.090

0.085

Book value per share (end of period)

9.69

9.51

9.45

9.33

9.30

Tangible book value per share (end of period) (non-GAAP)

7.59

7.39

7.33

7.19

7.15

Stock price (end of period)

11.01

11.50

10.14

11.29

10.05








Balance Sheet:








Total assets

\\$      6,181,030

\\$            6,042,338

\\$              5,839,529

\\$   5,782,934

\\$      5,755,146

Total loans and leases

5,130,445

4,995,540

4,829,152

4,729,581

4,634,594

Total deposits

4,393,456

4,306,018

4,144,577

4,129,408

4,114,795

Brookline Bancorp, Inc. stockholders' equity

680,417

667,485

663,468

653,516

651,319








Asset Quality:








Nonperforming assets

\\$           32,470

\\$                 20,676

\\$                   21,025

\\$        25,874

\\$           24,757

Nonperforming assets as a percentage of total assets

0.53 %

0.34 %

0.36 %

0.45 %

0.43 %

Allowance for loan and lease losses

\\$    58,606

\\$                 56,739

\\$                   56,472

\\$        56,398

\\$           55,106

Allowance for loan and lease losses as a percentage of total loans and leases

1.14 %

1.14 %

1.17 %

1.19 %

1.19 %

Net loan and lease charge-offs

\\$                400

\\$                   1,389

\\$                     1,599

\\$             501

\\$                854

Net loan and lease charge-offs as a percentage of average loans and leases (annualized)

0.03 %

0.11 %

0.13 %

0.04 %

0.07 %








Capital Ratios:








Stockholders' equity to total assets

11.01 %

11.05 %

11.36 %

11.30 %

11.32 %

Tangible stockholders' equity to tangible assets (non-GAAP)

8.83 %

8.81 %

9.04 %

8.94 %

8.93 %








(1) Calculated on a fully tax-equivalent basis.






(2) Calculated as non-interest expense as a percentage of net interest income plus non-interest income.








BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Consolidated Balance Sheets (Unaudited)

March 31, 2016

December 31, 2015

September 30, 2015

June 30, 2015

March 31, 2015

ASSETS

(In Thousands Except Share Data)

Cash and due from banks

\\$           31,127

\\$            28,753

\\$          27,299

\\$          43,363

\\$          35,118

Short-term investments

42,795

46,736

19,745

48,513

162,003

Total cash and cash equivalents

73,922

75,489

47,044

91,876

197,121

Investment securities available-for-sale

536,182

513,201

526,764

530,476

565,115

Investment securities held-to-maturity

83,409

93,757

63,097

60,511

500

Total investment securities

619,591

606,958

589,861

590,987

565,615

Loans and leases held-for-sale

3,190

13,383

10,992

12,482

787

Loans and leases:








Commercial real estate loans:








Commercial real estate mortgage

1,958,057

1,875,592

1,810,550

1,758,281

1,714,140

Multi-family mortgage

682,317

658,480

614,560

627,571

652,500

Construction

126,024

130,322

138,261

127,506

134,247

Total commercial real estate loans

2,766,398

2,664,394

2,563,371

2,513,358

2,500,887

Commercial loans and leases:








Commercial

616,290

592,531

580,711

578,548

560,344

Equipment financing

721,621

721,890

684,331

648,447

614,301

Condominium association

60,728

59,875

57,562

55,185

52,707

Total commercial loans and leases

1,398,639

1,374,296

1,322,604

1,282,180

1,227,352

Indirect automobile loans

11,220

13,678

16,294

19,377

23,335

Consumer loans:








Residential mortgage

617,501

616,449

606,063

603,073

578,994

Home equity

318,859

314,553

308,371

299,396

292,198

Other consumer

17,828

12,170

12,449

12,197

11,828

Total consumer loans

954,188

943,172

926,883

914,666

883,020

Total loans and leases

5,130,445

4,995,540

4,829,152

4,729,581

4,634,594

Allowance for loan and lease losses

(58,606)

(56,739)

(56,472)

(56,398)

(55,106)

Net loans and leases

5,071,839

4,938,801

4,772,680

4,673,183

4,579,488

Restricted equity securities

65,438

66,117

75,553

75,553

74,804

Premises and equipment, net of accumulated depreciation

77,128

78,156

77,472

77,892

79,252

Deferred tax asset

24,181

26,817

25,730

28,466

25,834

Goodwill

137,890

137,890

137,890

137,890

137,890

Identified intangible assets, net of accumulated amortization

9,998

10,633

11,357

12,082

12,806

Other real estate owned and repossessed assets

565

1,343

1,301

2,412

2,023

Other assets

97,288

86,751

89,649

80,111

79,526

Total assets

\\$     6,181,030

\\$         6,042,338

\\$    5,839,529

\\$    5,782,934

\\$   5,755,146

LIABILITIES AND STOCKHOLDERS' EQUITY








Deposits:








Non-interest-bearing deposits:








Demand checking accounts

\\$        793,195

\\$            799,117

\\$         785,210

\\$         783,331

\\$     729,932

Interest-bearing deposits:








NOW accounts

286,920

283,972

254,767

247,172

237,200

Savings accounts

555,843

540,788

500,104

532,184

571,030

Money market accounts

1,649,348

1,594,269

1,540,104

1,523,798

1,525,053

Certificate of deposit accounts

1,108,150

1,087,872

1,064,392

1,042,923

1,051,580

Total interest-bearing deposits

3,600,261

3,506,901

3,359,367

3,346,077

3,384,863

Total deposits

4,393,456

4,306,018

4,144,577

4,129,408

4,114,795

Borrowed funds:








Advances from the FHLBB

905,953

861,866

848,913

823,452

806,491

Subordinated debentures and notes

82,978

82,936

82,873

82,850

82,806

Other borrowed funds

39,378

38,227

28,434

31,346

35,628

Total borrowed funds

1,028,309

983,029

960,220

937,648

924,925

Mortgagors' escrow accounts

7,905

7,516

7,996

7,494

8,414

Accrued expenses and other liabilities

64,566

72,289

57,996

49,792

51,046

Total liabilities

5,494,236

5,368,852

5,170,789

5,124,342

5,099,180

Stockholders' equity:








Brookline Bancorp, Inc. stockholders' equity:








Common stock, \\$0.01 par value; 200,000,000 shares authorized; 75,744,445 shares issued

757

757

757

757

757

Additional paid-in capital

617,477

616,899

616,252

618,044

617,845

Retained earnings, partially restricted

116,151

109,675

102,684

96,128

90,589

Accumulated other comprehensive (loss) income

3,352

(2,476)

1,191

(1,775)

1,747

Treasury stock, at cost;








4,861,554 shares, 4,861,554 shares, 4,861,085 shares, 5,048,525 shares, and 5,042,238 shares, respectively

(56,208)

(56,208)

(56,202)

(58,372)

(58,301)

Unallocated common stock held by the Employee Stock Ownership Plan;








203,973 shares, 213,066 shares, 222,645 shares, 232,224 shares, and 241,803 shares, respectively

(1,112)

(1,162)

(1,214)

(1,266)

(1,318)

Total Brookline Bancorp, Inc. stockholders' equity

680,417

667,485

663,468

653,516

651,319

Noncontrolling interest in subsidiary

6,377

6,001

5,272

5,076

4,647

Total stockholders' equity

686,794

673,486

668,740

658,592

655,966

Total liabilities and stockholders' equity

\\$     6,181,030

\\$        6,042,338

\\$    5,839,529

\\$    5,782,934

\\$   5,755,146








BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Consolidated Statements of Income (Unaudited)

Three Months Ended

March 31, 2016

December 31, 2015

September 30, 2015

June 30, 2015

March 31, 2015

(In Thousands Except Share Data)

Interest and dividend income:








Loans and leases

\\$           54,247

\\$                 54,814

\\$                   52,725

\\$        51,684

\\$           53,381

Debt securities

2,932

2,936

2,866

2,931

2,683

Marketable and restricted equity securities

680

668

1,079

491

524

Short-term investments

39

30

17

60

21

Total interest and dividend income

57,898

58,448

56,687

55,166

56,609

Interest expense:








Deposits

4,745

4,554

4,326

4,296

4,304

Borrowed funds

3,950

3,816

3,774

3,698

3,777

Total interest expense

8,695

8,370

8,100

7,994

8,081

Net interest income

49,203

50,078

48,587

47,172

48,528

Provision for credit losses

2,378

1,520

1,755

1,913

2,263

Net interest income after provision for credit losses

46,825

48,558

46,832

45,259

46,265

Non-interest income:








Deposit fees

2,145

2,208

2,261

2,195

2,066

Loan fees

330

364

205

271

342

Loan level derivative income, net

1,629

1,556

900

941

—

Gain on sales of loans and leases held-for-sale

905

614

446

279

869

Other

1,460

1,321

972

1,181

1,193

Total non-interest income

6,469

6,063

4,784

4,867

4,470

Non-interest expense:








Compensation and employee benefits

18,727

18,788

17,875

17,085

17,524

Occupancy

3,526

3,482

3,535

3,437

3,472

Equipment and data processing

3,714

3,537

3,600

3,680

4,020

Professional services

966

951

984

1,163

1,094

FDIC insurance

878

883

929

831

867

Advertising and marketing

861

903

878

823

748

Amortization of identified intangible assets

635

724

725

724

738

Other

2,746

3,061

2,744

2,709

2,863

Total non-interest expense

32,053

32,329

31,270

30,452

31,326

Income before provision for income taxes

21,241

22,292

20,346

19,674

19,409

Provision for income taxes

7,599

8,237

6,897

7,115

7,104

Net income before noncontrolling interest in subsidiary

13,642

14,055

13,449

12,559

12,305

Less net income attributable to noncontrolling interest in subsidiary

830

728

561

694

602

Net income attributable to Brookline Bancorp, Inc.

\\$           12,812

\\$                 13,327

\\$                   12,888

\\$        11,865

\\$           11,703

Earnings per common share:








Basic

\\$               0.18

\\$                     0.19

\\$                       0.18

\\$            0.17

\\$               0.17

Diluted

\\$               0.18

\\$                     0.19

\\$                       0.18

\\$            0.17

\\$               0.17

Weighted average common shares outstanding during the period:







Basic

70,185,356

70,177,382

70,129,056

70,049,829

70,036,090

Diluted

70,341,843

70,318,657

70,240,020

70,215,850

70,164,105

Dividends declared per common share

\\$             0.090

\\$                   0.090

\\$                     0.090

\\$          0.090

\\$             0.085








BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Asset Quality Analysis (Unaudited)

At and for the Three Months Ended

March 31, 2016

December 31, 2015

September 30, 2015

June 30, 2015

March 31, 2015

(Dollars in Thousands)

NONPERFORMING ASSETS:








Loans and leases accounted for on a nonaccrual basis:








Commercial real estate mortgage

\\$             5,440

\\$                   5,482

\\$                     3,155

\\$          3,174

\\$             3,250

Multi-family mortgage

1,446

291

309

309

—

Total commercial real estate loans

6,886

5,773

3,464

3,483

3,250








Commercial

15,050

6,264

8,326

12,316

12,039

Equipment financing

5,391

2,610

2,896

2,639

2,321

Total commercial loans and leases

20,441

8,874

11,222

14,955

14,360








Indirect automobile loans

308

675

629

417

468








Residential mortgage

2,132

2,225

2,539

2,421

2,632

Home equity

2,104

1,757

1,818

2,144

1,979

Other consumer

34

29

52

42

45

Total consumer loans

4,270

4,011

4,409

4,607

4,656








Total nonaccrual loans and leases

31,905

19,333

19,724

23,462

22,734








Other real estate owned

408

729

1,149

1,676

1,043

Other repossessed assets

157

614

152

736

980

Total nonperforming assets

\\$           32,470

\\$                 20,676

\\$                   21,025

\\$        25,874

\\$           24,757








Loans and leases past due greater than 90 days and still accruing

\\$             3,512

\\$                   8,690

\\$                     8,792

\\$        10,220

\\$             8,061








Troubled debt restructurings on accrual

16,697

17,953

17,746

14,205

14,184

Troubled debt restructurings on nonaccrual

14,614

4,965

5,960

5,981

6,126

Total troubled debt restructurings

\\$           31,311

\\$                 22,918

\\$                   23,706

\\$        20,186

\\$           20,310








Nonperforming loans and leases as a percentage of total loans and leases

0.62 %

0.39 %

0.41 %

0.50 %

0.49 %

Nonperforming assets as a percentage of total assets

0.53 %

0.34 %

0.36 %

0.45 %

0.43 %








PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:





Allowance for loan and lease losses at beginning of period

\\$           56,739

\\$                 56,472

\\$                   56,398

\\$        55,106

\\$           53,659

Charge-offs

(875)

(1,929)

(1,931)

(1,029)

(1,665)

Recoveries

475

540

332

528

811

Net charge-offs

(400)

(1,389)

(1,599)

(501)

(854)

Provision for loan and lease losses

2,267

1,656

1,673

1,793

2,301

Allowance for loan and lease losses at end of period

\\$           58,606

\\$                 56,739

\\$                   56,472

\\$        56,398

\\$           55,106








Allowance for loan and lease losses as a percentage of total loans and leases

1.14 %

1.14 %

1.17 %

1.19 %

1.19 %

Allowance for loan and lease losses related to originated loans and leases as a percentage of originated loans and leases (non-GAAP)

1.20 %

1.20 %

1.25 %

1.27 %

1.28 %








NET CHARGE-OFFS:








Commercial real estate loans

\\$                331

\\$                          —

\\$                           —

\\$             162

\\$                388

Commercial loans and leases

64

1,302

1,276

151

238

Indirect automobile loans

13

3

117

(13)

239

Consumer loans

(8)

84

206

201

(11)

Total net charge-offs

\\$                400

\\$                   1,389

\\$                     1,599

\\$             501

\\$                854








Net loan and lease charge-offs as a percentage of average loans and leases (annualized)

0.03 %

0.11 %

0.13 %

0.04 %

0.07 %








BROOKLINE BANCORP, INC. AND SUBSIDIARIES

Average Yields / Costs (Unaudited)

Three Months Ended

March 31, 2016

December 31, 2015

March 31, 2015

Average
Balance

Interest (1)

Average
Yield/
Cost

Average
Balance

Interest (1)

Average Yield/
Cost

Average
Balance

Interest (1)

Average Yield/
Cost

(Dollars in Thousands)

Assets:
















Interest-earning assets:
















Investments:
















Debt securities (2)

\\$    604,034

\\$   3,011

1.99 %

\\$    601,590

\\$   2,992

1.99 %

\\$    555,558

\\$   2,683

1.93 %

Marketable and restricted equity securities (2)

66,887

679

4.07 %

66,659

667

4.01 %

74,836

566

3.03 %

Short-term investments

41,861

39

0.38 %

54,514

30

0.22 %

49,841

21

0.17 %

Total investments

712,782

3,729

2.09 %

722,763

3,689

2.04 %

680,235

3,270

1.92 %

Loans and Leases:
















Commercial real estate loans (3)

2,698,098

27,266

4.04 %

2,603,238

27,072

4.16 %

2,475,950

26,245

4.24 %

Commercial loans (3)

670,671

6,651

3.93 %

656,760

7,119

4.25 %

610,695

6,506

4.26 %

Equipment financing (3)

726,928

11,750

6.47 %

698,049

11,831

6.78 %

611,309

10,544

6.90 %

Indirect automobile loans (3)

12,493

153

4.93 %

14,991

144

3.81 %

282,494

2,142

3.08 %

Residential mortgage loans (3)

625,351

5,559

3.56 %

619,959

5,450

3.52 %

576,858

5,307

3.68 %

Other consumer loans (3)

330,078

3,117

3.78 %

323,659

3,419

4.19 %

299,119

2,828

3.83 %

Total loans and leases

5,063,619

54,496

4.30 %

4,916,656

55,035

4.48 %

4,856,425

53,572

4.41 %

Total interest-earning assets

5,776,401

58,225

4.03 %

5,639,419

58,724

4.17 %

5,536,660

56,842

4.11 %

Allowance for loan and lease losses

(57,125)




(57,182)




(54,319)



Non-interest-earning assets

373,582




374,954




369,773



Total assets

\\$ 6,092,858




\\$ 5,957,191




\\$ 5,852,114





















Liabilities and Stockholders' Equity:
















Interest-bearing liabilities:
















Deposits:
















NOW accounts

\\$    279,414

51

0.07 %

\\$    263,893

47

0.07 %

\\$    237,718

44

0.07 %

Savings accounts

564,681

344

0.25 %

517,333

301

0.23 %

541,595

273

0.20 %

Money market accounts

1,629,054

1,775

0.44 %

1,608,959

1,762

0.43 %

1,536,751

1,816

0.48 %

Certificates of deposit

1,077,639

2,575

0.96 %

1,054,872

2,444

0.92 %

1,033,511

2,171

0.85 %

Total interest-bearing deposits

3,550,788

4,745

0.54 %

3,445,057

4,554

0.52 %

3,349,575

4,304

0.52 %

Borrowings
















Advances from the FHLBB

863,960

2,669

1.22 %

836,939

2,536

1.19 %

941,314

2,504

1.06 %

Subordinated debentures and notes

82,955

1,256

6.06 %

82,906

1,252

6.04 %

82,784

1,248

6.03 %

Other borrowed funds

39,624

25

0.26 %

33,459

28

0.33 %

37,806

25

0.26 %

Total borrowings

986,539

3,950

1.58 %

953,304

3,816

1.57 %

1,061,904

3,777

1.42 %

Total interest-bearing liabilities

4,537,327

8,695

0.77 %

4,398,361

8,370

0.75 %

4,411,479

8,081

0.74 %

Non-interest-bearing liabilities:
















Demand checking accounts

798,869




806,348




728,099



Other non-interest-bearing liabilities

73,700




79,492




59,226



Total liabilities

5,409,896




5,284,201




5,198,804



Brookline Bancorp, Inc. stockholders' equity

677,101




667,471




648,683



Noncontrolling interest in subsidiary

5,861




5,519




4,627



Total liabilities and equity

\\$ 6,092,858




\\$ 5,957,191




\\$ 5,852,114



Net interest income (tax-equivalent basis) /Interest-rate spread (4)

49,530

3.26 %


50,354

3.42 %


48,761

3.37 %

Less adjustment of tax-exempt income

327




276




233

Net interest income

\\$ 49,203




\\$ 50,078




\\$ 48,528

Net interest margin (5)



3.45 %




3.54 %




3.57 %
















(1) Tax-exempt income on debt securities, equity securities and revenue bonds included in commercial real estate loans is included on a tax-equivalent basis.

(2) Average balances include unrealized gains (losses) on investment securities. Dividend payments may not be consistent and average yield on equity securities may vary from month to month.

(3) Loans on nonaccrual status are included in the average balances.

(4) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.

(5) Net interest margin represents net interest income (tax-equivalent basis) divided by average interest-earning assets.


Non-GAAP Financial Information (Unaudited)









At and for the Three Months Ended

March 31, 2016

December 31, 2015

September 30, 2015

June 30, 2015

March 31, 2015

(Dollars in Thousands)








Net income, as reported

\\$           12,812

\\$                 13,327

\\$                   12,888

\\$        11,865

\\$           11,703








Average total assets

\\$      6,092,858

\\$            5,957,191

\\$              5,790,469

\\$   5,762,620

\\$      5,852,114

Less: Average goodwill and average identified intangible assets, net

148,248

148,930

149,669

150,385

151,125

Average tangible assets

\\$      5,944,610

\\$            5,808,261

\\$              5,640,800

\\$   5,612,235

\\$      5,700,989








Return on average tangible assets (annualized)

0.86 %

0.92 %

0.91 %

0.85 %

0.82 %








Average total stockholders' equity

\\$         677,101

\\$               667,471

\\$                 659,761

\\$      655,223

\\$         648,683

Less: Average goodwill and average identified intangible assets, net

148,248

148,930

149,669

150,385

151,125

Average tangible stockholders' equity

\\$         528,853

\\$               518,541

\\$                 510,092

\\$      504,838

\\$         497,558








Return on average tangible stockholders' equity (annualized)

9.69 %

10.28 %

10.11 %

9.40 %

9.41 %








Brookline Bancorp, Inc. stockholders' equity

\\$         680,417

\\$               667,485

\\$                 663,468

\\$      653,516

\\$         651,319

Less:








Goodwill

137,890

137,890

137,890

137,890

137,890

Identified intangible assets, net

9,998

10,633

11,357

12,082

12,806

Tangible stockholders' equity

\\$         532,529

\\$               518,962

\\$                 514,221

\\$      503,544

\\$         500,623








Total assets

\\$      6,181,030

\\$            6,042,338

\\$              5,839,529

\\$   5,782,934

\\$      5,755,146

Less:








Goodwill

137,890

137,890

137,890

137,890

137,890

Identified intangible assets, net

9,998

10,633

11,357

12,082

12,806

Tangible assets

\\$      6,033,142

\\$            5,893,815

\\$              5,690,282

\\$   5,632,962

\\$      5,604,450








Tangible stockholders' equity to tangible assets

8.83 %

8.81 %

9.04 %

8.94 %

8.93 %








Tangible stockholders' equity

\\$         532,529

\\$               518,962

\\$                 514,221

\\$      503,544

\\$         500,623








Number of common shares issued

75,744,445

75,744,445

75,744,445

75,744,445

75,744,445

Less:








Treasury shares

4,861,554

4,861,554

4,861,085

5,048,525

5,042,238

Unallocated ESOP shares

203,973

213,066

222,645

232,224

241,803

Unvested restricted shares

486,035

486,035

486,999

406,566

418,035

Number of common shares outstanding

70,192,883

70,183,790

70,173,716

70,057,130

70,042,369








Tangible book value per common share

\\$               7.59

\\$                     7.39

\\$                       7.33

\\$            7.19

\\$               7.15








Allowance for loan and lease losses

\\$           58,606

\\$                 56,739

\\$                   56,472

\\$        56,398

\\$           55,106

Less:








Allowance for acquired loans and leases losses

1,938

1,752

2,048

2,655

2,911

Allowance for originated loan and lease losses

\\$           56,668

\\$                 54,987

\\$                   54,424

\\$        53,743

\\$           52,195








Total loans and leases

\\$      5,130,445

\\$            4,995,540

\\$              4,829,152

\\$   4,729,581

\\$      4,634,594

Less:








Total acquired loans and leases

395,782

422,652

457,922

509,028

561,103

Total originated loans and leases

\\$      4,734,663

\\$            4,572,888

\\$              4,371,230

\\$   4,220,553

\\$      4,073,491








Allowance for loan and lease losses related to originated loans and leases as a percentage of originated loans and leases

1.20 %

1.20 %

1.25 %

1.27 %

1.28 %