Brookline Bancorp (BRKL) 8-K Brookline Bancorp Announces Strong 2011 Results

Exhibit 99.1

Brookline Bancorp Announces Strong 2011 Results

Exceptional Commercial Loan and Deposit Growth

Combined With Solid Credit Quality

BROOKLINE, Mass.--(BUSINESS WIRE)--January 25, 2012--Brookline Bancorp, Inc. (NASDAQ: BRKL) today reported net income of $7.1 million, or $0.12 fully diluted earnings per share (EPS), for the quarter ended December 31, 2011. These results compare to the fourth quarter 2010 net income of $6.4 million, or $0.11 fully diluted EPS, and the net income for the third quarter 2011 of $6.3 million, or $0.11 fully diluted EPS. Net earnings from operations were $7.6 million, or $0.13 per fully diluted share, after adjustment for additional professional service fees, including merger-related expenses, of $499,000 (after-tax) associated with the January 1, 2012 acquisition of Bancorp Rhode Island, Inc. (“Bancorp Rhode Island”).

For the year ended December 31, 2011, the Company reported net income of $27.6 million, or $0.47 fully diluted EPS, compared to net income of $26.9 million, or $0.46 fully diluted EPS, for the same period in 2010. Year-to-date net earnings from operations were $28.9 million, or $.49 per fully diluted share, after adjustment for the increase in professional service fees, including merger-related expenses, of $1.3 million (after-tax) related to the acquisitions of First Ipswich Bancorp (“First Ipswich”) and Bancorp Rhode Island.

“Brookline Bancorp had an excellent year in 2011 and we are pleased with our financial performance as we continue to grow our loan portfolio and deposit base, while maintaining our solid credit quality” said Paul A. Perrault, President and CEO of Brookline Bancorp. “We are very excited about the benefits that are expected from integrating First Ipswich and Bancorp Rhode Island into the Company. Our further expansion into Central New England should provide many additional service opportunities to further strengthen our position in a very competitive marketplace.”

BALANCE SHEET

Total assets at December 31, 2011 were $3.3 billion, representing an increase of 21.3 percent from year-end 2010 and 4.5 percent from September 30, 2011.

The loan portfolio grew to $2.7 billion as of December 31, 2011. This represented increases of $467.3 million, or 20.7 percent, from year-end 2010 and $58.7 million, or 2.2 percent, from September 30, 2011. Growth from year-end 2010 was driven by organic growth of 11.9 percent among all major loan categories and the addition of $203.1 million in loans from the First Ipswich acquisition. Commercial real estate loans were $1.3 billion at December 31, 2011, up $267.2 million compared to December 31, 2010. Commercial loans were $444.0 million as of December 31, 2011, up 29.0 percent from year-end 2010, primarily due to the increases in Eastern Funding’s portfolio, driven by the purchase of a loan portfolio in the third quarter of 2011, and commercial and industrial loans due to the First Ipswich acquisition. The increase in the loan portfolio from September 30, 2011 was driven by growth in the commercial real estate and commercial portfolios, 3.2 percent and 2.8 percent respectively.

Total deposits were $2.3 billion at December 31, 2011, up 24.4 percent from year-end 2010 and 3.3 percent from September 30, 2011. Growth from year-end 2010 was driven by organic growth of 12.1 percent and the addition of $212.2 million in deposits from the First Ipswich acquisition. Transaction deposits (non-certificate of deposits) trends remain positive with growth of 41.9 percent from year-end 2010 and a 5.5 percent increase from September 30, 2011. The transaction deposit growth from September 30, 2011 was driven primarily by demand deposit and money market accounts. For the three months ended December 31, 2011, the average balance of transaction deposits rose to 63.8 percent of the average balance of total deposits compared to 53.7 percent at year-end 2010 and 62.4 percent from September 30, 2011.

The Company’s reduction in its investment securities portfolio from $304.5 million at December 31, 2010 to $217.4 million at December 31, 2011 is a result of limited investment opportunities in the market.

The Company had monies in escrow of $113.0 million at December 31, 2011 to fund the Bancorp Rhode Island acquisition on January 1, 2012.

Federal Home Loan Bank (FHLB) advances for the fourth quarter 2011 were $498.6 million, increases of $123.0 million from year-end 2010 and $60.6 million from September 30, 2011. The increased borrowings were used primarily to fund loan growth and the acquisitions.

NET INTEREST INCOME

Net interest income for the fourth quarter 2011 increased to $28.6 million from $24.6 million in the fourth quarter 2010 and increased compared to $28.0 million in the third quarter 2011. Net interest margin for the fourth quarter 2011 was 3.80 percent, representing an improvement of 2 basis points from the fourth quarter 2010 and an increase of 7 basis points from the third quarter 2011, largely as a result of the continued restructuring of the deposit base into lower-cost transaction accounts. On a year-to-date basis, net interest income was $110.5 million, an increase of $13.9 million, or 14.4 percent, from 2010. Net interest margin for 2011 was 3.77 percent compared to 3.75 percent for 2010.

NON-INTEREST INCOME

Non-interest income was $1.4 million for the fourth quarter 2011, up $583,000 from the fourth quarter 2010 and $498,000 from the third quarter 2011. On a year-to-date basis, non-interest income was $4.8 million, an increase of $2.6 million compared to 2010. This increase is primarily due to a $1.5 million penalty charged to income resulting from prepaying FHLB borrowings and partially offset by $834,000 in gains on the sale of securities that were both recorded in 2010. In addition, the increase was impacted by the First Ipswich acquisition. The change in non-interest income from the third quarter 2011 is due to additional losses from investments in low-income housing projects of $171,000, offset by an increase in related tax benefits of $106,000. The remaining change in other income was an increase of $169,000 primarily as a result of bankruptcy proceeds received on a defaulted bond.

NON-INTEREST EXPENSE

Non-interest expense was $16.5 million in the fourth quarter 2011, up $3.9 million compared to the fourth quarter 2010 and down $559,000 from the third quarter 2011. The change from the third quarter 2011 was primarily due to a write-down of $719,000 incurred in the third quarter of 2011 resulting from a property acquired through foreclosure that was under construction. There were no write-downs recorded in the fourth quarter 2011. Offsetting the write-down expense was an increase in professional service fees.

On a year-to-date basis, non-interest expense was $62.9 million, an increase of $14.7 million over the same period in 2010. The increase in the year-to-date comparison was primarily driven by the acquisition of First Ipswich and the merger-related expenses associated with the acquisition of Bancorp Rhode Island.

ASSET QUALITY

Non-performing assets at December 31, 2011 totaled $8.8 million or 0.27 percent of total assets. This represented a decrease from $10.5 million, or 0.33 percent of total assets, at September 30, 2011.

Net charge-offs were $267,000, or 0.04 percent of average loans, for the fourth quarter 2011. Net charge-offs for the fourth quarter 2010 were $2.0 million, or 0.36 percent of average loans, and were $610,000, or 0.09 percent of average loans, in the third quarter 2011. On a year-to-date basis, net charge-offs were $1.9 million, or 0.08 percent of average loans, a decrease of $3.2 million over the same period in 2010.

The provision for loan losses was $842,000 for the fourth quarter 2011, compared to $1.3 million in the fourth quarter 2010 and $891,000 in the third quarter 2011. On a year-to-date basis, the provision was $3.6 million, a decrease of $165,000 from the same period in 2010.

The allowance for loan losses was $31.7 million at December 31, 2011 compared to $29.7 million at December 31, 2010. The allowance for loan losses as a percent of total loans was 1.17 percent at December 31, 2011 compared to 1.32 percent at December 31, 2010 and the decrease was due to the impact of the First Ipswich acquisition. A non-accretable discount of $4.2 million, $3.5 million of which remains at December 31, 2011, was established as of February 28, 2011 in connection with the accounting for acquired First Ipswich loans at that date.

DIVIDEND DECLARED

The Company’s Board of Directors approved a dividend of $0.085 per share. The dividend will be paid on February 24, 2012, to shareholders of record on February 10, 2012.

ABOUT BROOKLINE BANCORP, INC.

Brookline Bancorp, Inc., a bank holding company with approximately $4.9 billion in assets and 43 branches throughout Massachusetts and Rhode Island, is headquartered in Brookline, Massachusetts and operates as the holding company for Brookline Bank, Bank Rhode Island, and The First National Bank of Ipswich. The Company provides commercial and retail banking services, and 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.fnbi.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. 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.

NON-GAAP FINANCIAL MEASURES

The Company uses certain non-GAAP financial measures, such as net earnings from operations, which reflects the reduction in certain professional service fees, tangible book value per common share and tangible stockholders’ equity to tangible assets. 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 sector. A detailed reconciliation table of the Company's GAAP to the non-GAAP measures is attached.

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Selected Financial Highlights (unaudited)
(In thousands except share data)
				At or for the Three months ended						Twelve months ended
				December 31,						December 31,
				2011			2010			2011			2010
Financial Data:
Net interest income				$	28,620		$	24,636		$	110,468		$	96,594
Provision for credit losses					842			1,317			3,631			3,796
Non-interest income					1,384			801			4,793			2,186
Non-interest expense					16,520			12,596			62,925			48,187
Income before income taxes					12,642			11,524			48,705			46,797
Net income attributable to Brookline Bancorp, Inc					7,058			6,398			27,600			26,872
Selected Statistical Data:
Net interest margin (1)					3.80	%		3.78	%		3.77	%		3.75	%
Interest rate spread (1)					3.56	%		3.43	%		3.50	%		3.40	%
Return on average assets					0.89	%		0.95	%		0.90	%		1.01	%
Return on average stockholders' equity					5.60	%		5.15	%		5.51	%		5.45	%
Common Share Data:
Basic earnings per share				$	0.12		$	0.11		$	0.47		$	0.46
Diluted earnings per share					0.12			0.11			0.47			0.46
Dividends paid per share					0.085			0.085			0.34			0.34
Book value per common share					8.50			8.39			8.50			8.39
Tangible book value per common share					7.64			7.62			7.64			7.62
Market value per common share at end of year					8.44			10.85			8.44			10.85
(1) Calculated on a fully-taxable equivalent basis.
	At or for the Three Months Ended
	Dec 31, 2011			Sep 30, 2011			Jun 30, 2011			Mar 31, 2011			Dec 31, 2010
Balance Sheet:
Total assets	$	3,299,013		$	3,157,498		$	3,114,582		$	3,057,772		$	2,720,542
Loans, gross		2,720,821			2,662,076			2,588,923			2,524,989			2,253,538
Deposits		2,252,331			2,179,605			2,159,133			2,118,259			1,810,899
Brookline Bancorp, Inc. stockholders’ equity		503,602			501,890			501,077			497,582			495,443
Asset Quality:
Non-performing assets	$	8,796		$	10,486		$	11,774		$	10,787		$	8,166
Non-performing assets / total assets		0.27	%		0.33	%		0.38	%		0.35	%		0.30	%
Allowance for loan and losses to total loans	$	31,703		$	31,128		$	30,847		$	30,048		$	29,695
Allowance to total loan and losses		1.17	%		1.17	%		1.19	%		1.19	%		1.32	%
Net loan charge-offs	$	267		$	610		$	371		$	700		$	1,984
Net loan charge-offs to average loans (annualized)		0.04	%		0.09	%		0.06	%		0.12	%		0.36	%
Non-accretable discount related to First Ipswich		3,476			3,828			4,240			0			0
Capital Ratios:
Stockholders’ equity to total assets		15.27	%		15.90	%		16.09	%		16.27	%		18.21	%
Tangible stockholders’ equity to tangible assets		13.93	%		14.49	%		14.66	%		14.81	%		16.83	%

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands)
	December 31,			September 30,			December 31,
	2011			2011			2010
ASSETS
Cash and due from banks	$	56,513		$	22,919		$	18,451
Short-term investments		49,783			82,962			47,457
Securities available for sale		217,431			253,510			304,540
Restricted equity securities		39,283			39,283			36,335
Loans
Commercial real estate:
Commercial real estate mortgage		748,736			718,440			564,584
Multi-family mortgage		481,459			479,607			421,013
Construction		40,798			34,091			18,205
Total commercial real estate		1,270,993			1,232,138			1,003,802
Commercial loans:
Commercial		150,895			155,329			96,788
Eastern Funding		246,118			232,483			205,018
Condominium association		46,953			43,885			42,422
Total commercial loans		443,966			431,697			344,228
Indirect automobile		573,350			571,705			553,689
Consumer loans:
Residential mortgage		350,213			347,309			288,108
Home equity		76,527			73,696			58,745
Other consumer		5,772			5,531			4,966
Total consumer loans		432,512			426,536			351,819
Allowance for loan losses		(31,703	)		(31,128	)		(29,695	)
Net loans		2,689,118			2,630,948			2,223,843
Accrued interest receivable		9,349			9,255			8,596
Bank premises and equipment, net		38,495			35,859			11,126
Deferred tax asset		12,681			11,840			10,206
Prepaid income taxes		799			2,498			78
Goodwill		45,799			46,203			43,241
Monies in escrow-Bancorp Rhode Island, Inc. acquisition		112,983			-			-
Identified intangible assets, net of accumulated amortization
of $12,651, $12,274 and $11,081, respectively		5,214			5,591			1,871
Prepaid expenses and other assets		21,565			16,630			14,798
Total assets	$	3,299,013		$	3,157,498		$	2,720,542
LIABILITIES AND EQUITY
Deposits
Demand checking accounts	$	225,284		$	214,219		$	109,108
NOW accounts		110,220			116,206			120,599
Savings accounts		164,744			165,356			114,258
Money market savings accounts		946,411			875,877			675,328
Certificate of deposit accounts		805,672			807,947			791,606
Total deposits		2,252,331			2,179,605			1,810,899
Borrowed funds		498,570			437,974			375,569
Overnight and short-term borrowings		8,349			6,947			13,000
Mortgagors’ escrow accounts		6,513			6,943			5,843
Accrued expenses and other liabilities		26,248			21,042			17,283
Total liabilities		2,792,011			2,652,511			2,222,594
Equity:
Brookline Bancorp, Inc. stockholders’ equity:
Preferred stock, $0.01 par value; 50,000,000 shares		-			-			-
authorized; none issued
Common stock, $0.01 par value; 200,000,000 shares authorized;
64,597,180 shares, 64,580,180 shares and 64,445,389
shares issued, respectively		644			644			644
Additional paid-in capital		525,171			525,012			524,515
Retained earnings, partially restricted		39,993			37,926			32,357
Accumulated other comprehensive income		1,963			2,540			2,348
Treasury stock, at cost - 5,373,733 shares		(62,107	)		(62,107	)		(62,107	)
Unallocated common stock held by ESOP – 378,215 shares,
389,763 shares and 424,422 shares, respectively		(2,062	)		(2,125	)		(2,314	)
Total Brookline Bancorp, Inc. stockholders’ equity		503,602			501,890			495,443
Noncontrolling interest in subsidiary		3,400			3,097			2,505
Total equity		507,002			504,987			497,948
Total liabilities and equity	$	3,299,013		$	3,157,498		$	2,720,542

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(In thousands except share data)
	Three months ended					Twelve months ended
	December 31,					December 31,
	2011			2010		2011			2010
Interest income:
Loans	$	34,606		$	30,469	$	134,207		$	123,416
Debt securities		1,299			1,791		6,297			7,601
Short-term investments		28			24		105			100
Equity securities		55			4		195			44
Total interest income		35,988			32,288		140,804			131,161
Interest expense:
Deposits (excluding brokered deposits)		4,754			5,065		19,757			21,420
Borrowed funds		2,614			2,587		10,579			13,147
Total interest expense		7,368			7,652		30,336			34,567
Net interest income		28,620			24,636		110,468			96,594
Provision for credit losses		842			1,317		3,631			3,796
Net interest income after provision for credit losses		27,778			23,319		106,837			92,798
Non-interest income:
Fees, charges and other income		1,555			801		5,384			2,869
Loss from investments in low income housing		(171	)		-		(671	)		-
Penalty from prepayment of borrowed funds		-			-		-			(1,468	)
Gain on sales of securities		-			-		80			834
Loss on impairment of securities		-			-		-			(49	)
Total non-interest income		1,384			801		4,793			2,186
Non-interest expense:
Compensation and employee benefits		8,092			5,927		30,789			22,935
Occupancy		1,628			1,214		6,138			4,588
Equipment and data processing		2,417			1,933		9,144			7,518
Professional services		1,722			1,119		5,375			3,718
FDIC insurance		510			428		1,746			1,674
Advertising and marketing		265			325		1,376			1,224
Amortization of identified intangible assets		377			306		1,570			1,224
Write-down of other real estate owned		-			-		719			-
Other		1,509			1,344		6,068			5,306
Total non-interest expense		16,520			12,596		62,925			48,187
Income before income taxes		12,642			11,524		48,705			46,797
Provision for income taxes		5,281			4,918		19,886			19,156
Net income		7,361			6,606		28,819			27,641
Less net income attributable to noncontrolling interest in subsidiary		303			208		1,219			769
Net income attributable to Brookline Bancorp, Inc.	$	7,058		$	6,398	$	27,600		$	26,872
Earnings per common share:
Basic	$	0.12		$	0.11	$	0.47		$	0.46
Diluted		0.12			0.11		0.47			0.46
Weighted average common shares outstanding during the year:
Basic		58,652,370			58,598,363		58,633,627			58,578,599
Diluted		58,652,760			58,604,285		58,636,431			58,583,185

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Asset Quality Analysis (unaudited)
(In thousands)
	Three Months Ended
	Dec 31, 2011			Sep 30, 2011			Jun 30, 2011			Mar 31, 2011			Dec 31, 2010
NON-PERFORMING ASSETS:
Non-accrual loans:
Commercial real estate mortgage	$	-		$	-		$	-		$	-		$	-
Multi-family mortgage		1,380			1,373			1,376			964			964
Construction		-			-			-			2,475			2,475
Total commercial real estate		1,380			1,373			1,376			3,439			3,439
Commercial		-			-			-			-			-
Eastern Funding		1,925			1,892			1,757			1,390			2,478
Condominium association		15			17			-			-			-
Total commercial loans		1,940			1,909			1,757			1,390			2,478
Indirect automobile		111			59			117			83			158
Home equity		98			98			98			25			25
Residential mortgage		1,327			1,330			1,381			1,342			1,363
Other consumer		10			11			9			9			-
Total consumer loans		1,435			1,439			1,488			1,376			1,388
Acquired loans		2,664			2,757			3,167			3,235			-
Total non-accrual loans		7,530			7,537			7,905			9,523			7,463
Repossessed vehicles		389			558			461			528			524
Repossessed equipment		32			129			192			309			179
Other real estate owned		845			2,262			3,216			427			-
Total non-performing assets	$	8,796		$	10,486		$	11,774		$	10,787		$	8,166
Restructured loans on accrual	$	5,205		$	3,456		$	4,905		$	5,138		$	4,946
Non-accrual loans as a percent of total loans		0.28	%		0.28	%		0.31	%		0.38	%		0.33	%
Non-performing assets as a percent of total assets		0.27	%		0.33	%		0.38	%		0.35	%		0.30	%
PROVISION AND ALLOWANCE FOR LOAN LOSSES:
Balance at beginning of period	$	31,128		$	30,847		$	30,048		$	29,695		$	30,362
Provision for credit losses		842			891			1,170			1,053			1,317
Charged-offs		(533	)		(792	)		(606	)		(960	)		(2,245	)
Recoveries		266			182			235			260			261
Net charge-offs		(267	)		(610	)		(371	)		(700	)		(1,984	)
Balance at end of period	$	31,703		$	31,128		$	30,847		$	30,048		$	29,695
Allowance for loan losses as a percent of total loans		1.17	%		1.17	%		1.19	%		1.19	%		1.32	%
NET CHARGE-OFFS:
Commercial real estate	$	-		$	30		$	-		$	-		$	799
Commercial		(18	)		132			79			250			316
Auto		278			448			292			451			750
Consumer		7			-			-			(1	)		119
Total net charge-offs	$	267		$	610		$	371		$	700		$	1,984
Net charge-offs to average loans (annualized)		0.04	%		0.09	%		0.06	%		0.12	%		0.36	%

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Average Yields / Costs
(In thousands)
	Three months ended
	December 31, 2011								September 30, 2011
	Average						Average		Average						Average
	balance			Interest (1)			yield/cost		balance			Interest (1)			yield/cost
Assets
Interest-earning assets:
Short-term investments	$	73,791			$	28	0.15	%	$	83,708			$	28	0.13	%
Debt securities (2)		231,661				1,307	2.26			262,511				1,495	2.28
Equity securities (2)		40,137				64	0.63			40,137				58	0.56
Commercial real estate loans (3)		1,240,062				16,295	5.26			1,200,838				15,570	5.19
Commercial loans (3)		436,291				7,149	6.54			414,346				6,950	6.70
Indirect automobile loans (3)		573,102				6,722	4.65			580,886				6,996	4.78
Consumer loans (3)		426,167				4,496	4.21			424,800				4,608	4.34
Total interest-earning assets		3,021,211				36,061	4.76	%		3,007,226				35,705	4.74	%
Allowance for loan losses		(31,230	)							(31,137	)
Non-interest earning assets		195,477								151,940
Total assets	$	3,185,458							$	3,128,029
Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Deposits:
NOW accounts	$	111,798				50	0.18	%	$	132,780				59	0.18	%
Savings accounts		165,619				208	0.50			166,117				250	0.60
Money market savings accounts		917,712				1,960	0.85			859,060				1,971	0.91
Certificates of deposit		806,158				2,536	1.25			812,896				2,690	1.31
Total deposits (4)		2,001,287				4,754	0.94			1,970,853				4,970	1.00
Federal Home Loan Bank advances		420,874				2,602	2.42			429,114				2,661	2.43
Other borrowings		6,206				12	0.74			5,605				11	0.77
Total interest-bearing liabilities		2,428,367				7,368	1.21	%		2,405,572				7,642	1.26	%
Non-interest-bearing demand		223,359								191,832
checking accounts (4)
Other liabilities		25,956								25,466
Total liabilities		2,677,682								2,622,870
Brookline Bancorp, Inc. stockholders’ equity		504,511								502,345
Noncontrolling interest in subsidiary		3,265								2,814
Total liabilities and equity	$	3,185,458							$	3,128,029
Net interest income (tax equivalent basis)/interest rate spread (5)						28,693	3.56	%						28,063	3.48	%
Less adjustment of tax exempt income						73								73
Net interest income					$	28,620							$	27,990
Net interest margin (6)							3.80	%							3.73	%
(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 securities available for sale. Equity securities include marketable equity securities and restricted equity securities. Dividend payments may not be consistent and average yield on equity securities may vary from month to month.
(3) Loans on non-accrual status are included in the average balances.
(4) Including non-interest-bearing checking accounts, the average interest rate on total deposits was 0.85% and 0.91% in the three months ended December 31, 2011 and September 30, 2011, respectively.
(5) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
(6) Net interest margin represents net interest income (tax equivalent basis) divided by average interest-earning assets.

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Average Yields / Costs
(In thousands)
	Twelve months ended
	December 31, 2011								December 31, 2010
	Average						Average		Average						Average
	balance			Interest (1)			yield/cost		balance			Interest (1)			yield/cost
Assets
Interest-earning assets:
Short-term investments	$	71,404			$	105	0.15	%	$	60,007			$	100	0.17	%
Debt securities (2)		278,300				6,327	2.27			300,862				7,624	2.53
Equity securities (2)		39,557				224	0.57			37,395				60	0.16
Commercial real estate loans (3)		1,162,769				61,211	5.26			940,464				50,734	5.39
Commercial loans (3)		402,171				26,985	6.70			310,760				21,732	6.99
Indirect automobile loans (3)		575,635				28,313	4.92			553,929				32,825	5.93
Consumer loans (3)		412,096				17,923	4.35			373,207				18,124	4.86
Total interest-earning assets		2,941,932				141,088	4.79	%		2,576,624				131,199	5.09	%
Allowance for loan losses		(30,564	)							(30,617	)
Non-interest earning assets		150,379								109,736
Total assets	$	3,061,747							$	2,655,743
Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Deposits:
NOW accounts	$	126,950				216	0.17	%	$	107,713				152	0.14	%
Savings accounts		157,578				942	0.60			103,752				814	0.78
Money market savings accounts		830,780				7,626	0.92			610,253				6,546	1.07
Certificates of deposit		813,470				10,973	1.35			792,451				13,908	1.76
Total deposits (4)		1,928,778				19,757	1.02			1,614,169				21,420	1.33
Federal Home Loan Bank advances		414,432				10,454	2.49			423,526				13,143	3.10
Other borrowings		7,696				125	1.60			1,751				4	0.25
Total interest-bearing liabilities		2,350,906				30,336	1.29	%		2,039,446				34,567	1.69	%
Non-interest-bearing demand		181,078								97,504
checking accounts (4)
Other liabilities		26,091								23,215
Total liabilities		2,558,075								2,160,165
Brookline Bancorp, Inc. stockholders’ equity		500,855								493,373
Noncontrolling interest in subsidiary		2,817								2,205
Total liabilities and equity	$	3,061,747							$	2,655,743
Net interest income (tax equivalent basis)/interest rate spread (5)						110,752	3.50	%						96,632	3.40	%
Less adjustment of tax exempt income						284								39
Net interest income					$	110,468							$	96,593
Net interest margin (6)							3.77	%							3.75	%
(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 securities available for sale. Equity securities include marketable equity securities and restricted equity securities. Dividend payments may not be consistent and average yield on equity securities may vary from month to month.
(3) Loans on non-accrual status are included in the average balances.
(4) Including non-interest-bearing checking accounts, the average interest rate on total deposits was 0.94% and 1.25% in the twelve months ended December 31, 2011 and 2010, respectively.
(5) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
(6) Net interest margin represents net interest income (tax equivalent basis) divided by average interest-earning assets.

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Non-GAAP Financial Information
(In thousands except share data)
			At or for the Three months ended						Twelve months ended
			December 31,						December 31,
Reconciliation Table - Non-GAAP Financial Information			2011			2010			2011			2010
Net income attributable to Brookline Bancorp, Inc.				7,058			6,398			27,600			26,872
Add:
Professional service fees (after-tax)				499			-			1,302			-
Net earnings from operations				7,557			6,398			28,902			26,872
Earnings per common share:
Basic			$	0.13		$	0.11		$	0.49		$	0.46
Diluted			$	0.13		$	0.11		$	0.49		$	0.46
Weighted average common shares outstanding during the year:
Basic				58,652,370			58,598,363			58,633,627			58,578,599
Diluted				58,652,760			58,604,285			58,636,431			58,583,185
Brookline Bancorp, Inc. stockholders’ equity				503,602			495,443			503,602			495,443
Less:
Goodwill				45,799			43,241			45,799			43,241
Identified intangible assets				5,214			1,871			5,214			1,871
Tangible stockholder's equity				452,589			450,331			452,589			450,331
Common stock issued				64,597,180			64,445,389			64,597,180			64,445,389
Less:
Treasury shares				5,373,733			5,373,733			5,373,733			5,373,733
Number of shares outstanding at end of year				59,223,447			59,071,656			59,223,447			59,071,656
Tangible book value per common share				7.64			7.62			7.64			7.62
	At or for the Three Months Ended
	Dec 31, 2011		Sep 30, 2011			Jun 30, 2011			Mar 31, 2011			Dec 31, 2010
Brookline Bancorp, Inc. stockholders’ equity	503,602			501,890			501,077			497,582			495,443
Less:
Goodwill	45,799			46,203			45,966			46,854			43,241
Identified intangible assets	5,214			5,591			6,034			5,569			1,871
Tangible stockholder's equity	452,589			450,096			449,077			445,159			450,331
Total assets	3,299,013			3,157,498			3,114,582			3,057,772			2,720,542
Less:
Goodwill	45,799			46,203			45,966			46,854			43,241
Identified intangible assets	5,214			5,591			6,034			5,569			1,871
Tangible assets	3,248,000			3,105,704			3,062,582			3,005,349			2,675,430
Tangible stockholders’ equity to tangible assets	13.93	%		14.49	%		14.66	%		14.81	%		16.83	%

CONTACT:
Brookline Bancorp, Inc.
Julie A. Gerschick, 617-278-6406
Chief Financial Officer & Treasurer
jgerschick@brkl.com