Brookline Bancorp (BRKL) 8-K Brookline Bancorp Announces Second Quarter Net Income of $7.5 Million

Exhibit 99.1

Brookline Bancorp Announces Second Quarter Net Income of $7.5 Million

Loan and Deposit Growth Continues

BROOKLINE, Mass.--(BUSINESS WIRE)--July 25, 2012--Brookline Bancorp, Inc. (NASDAQ: BRKL) today reported net income of $7.5 million, or $0.11 fully diluted earnings per share (EPS), for the quarter ended June 30, 2012. Net income for the first half of 2012 was $13.9 million, or $0.20 fully diluted EPS, compared to $14.3 million, or $0.24 fully diluted EPS, for the first half of 2011.

Second quarter 2012 results included a $6.7 million provision for credit losses that reduced net income by approximately $0.06 per fully diluted share. $4.2 million of the provision was booked in connection with two short-term commercial loans made immediately after acquisition by the Company’s subsidiary, Bank Rhode Island. These loans were based, in part, on the issuance of tax credits which, due to the unexpected and abrupt bankruptcy filing of an entity in Rhode Island related to the borrowers, were not issued. The Company has moved aggressively to resolve the problem credits and is evaluating all potential sources of recovery; however, further recovery attempts will be complicated and subject to additional discussions with the relevant parties, including the State of Rhode Island.

Paul Perrault, President and Chief Executive Officer of Brookline Bancorp, Inc. stated: “The Company’s core strategy, the expertise of our banking officers and the strength of our customer service remain unchanged. As a result, we continue to report strong growth in loans and deposits despite the challenging economic environment in which we operate. We view the magnitude of this quarter’s unexpected development as an unusual event which we are working assertively to resolve. Business fundamentals remain strong. We continue to compete effectively against the many banks in our core markets, the first phase of our core systems conversion was a success, overall credit quality remains very strong, and the Company remains well-capitalized even after the provision recorded this quarter.”

BALANCE SHEET

Total assets at June 30, 2012 grew to $5.0 billion, an increase of 7.8 percent from the prior quarter and 59.6 percent from June 30, 2011.

The loan and lease portfolio grew to $4.0 billion as of June 30, 2012, up 7.9 percent from the prior quarter and 9.9 percent from December 31, 2011, after adjustment for the $1.2 billion in loans and leases acquired from Bancorp Rhode Island. The Company continued to benefit from strong growth in its commercial loan and lease portfolios, which reached $2.7 billion, or 66.6 percent of total loans, at June 30, 2012. The commercial portfolios increased 11.7 percent during the second quarter 2012 and 13.9 percent for the first six months of 2012, after adjustment for the $0.8 million in commercial loans and leases acquired from Bancorp Rhode Island.

Deposits of $3.5 billion at June 30, 2012, were up 7.2 percent from March 31, 2012 and 63.1 percent from June 30, 2011. Growth from June 30, 2011 includes the addition of $1.2 billion in deposits from the Bancorp Rhode Island acquisition. Core deposits increased 12.3 percent in the second quarter 2012 and now comprise 70.2 percent of total deposits at June 30, 2012. As a percentage of deposits, core deposits are up from 64.2 percent at December 31, 2011 and 61.9 percent at June 30, 2011, largely as a result of the deposits acquired in the Bancorp Rhode Island acquisition. The loans-to-deposit ratio decreased from 120.8 percent at December 31, 2011 to 114.0 percent at June 30, 2012.

Total cash and investment securities represented 13.3 percent of total assets at June 30, 2012. Securities available for sale of $384.5 million declined 16.7 percent from March 31, 2012 quarter-to-quarter, largely as a result of paydowns on mortgage-related investments.

Stockholders’ equity to total assets was 12.04 percent at June 30, 2012. The tangible common equity ratio was 9.07 percent at June 30, 2012, compared with 9.18 percent at March 31, 2012 and 14.66 percent at June 30, 2011.

NET INTEREST INCOME

Net interest income for the second quarter 2012 increased to $42.8 million from $27.8 million in the second quarter 2011 and decreased slightly as compared to $43.6 million in the first quarter 2012. Net interest income for the first half of 2012 increased to $86.4 million from $53.7 million in the first half of 2011.

Net interest margin for the second quarter 2012 was 3.81 percent and 3.85 percent for the six months ended June 30, 2012. The decrease of 6 basis points from the first quarter 2012 reflects management’s ongoing efforts to offset the impact of ongoing price competition with declines in the cost of funds.

NON-INTEREST INCOME

Non-interest income was $4.7 million for the second quarter 2012, up $1.1 million from the first quarter 2012. Fee income increased from $3.7 million in the first quarter 2012 to $4.2 million, or 11.6 percent, in the second quarter 2012. Non-interest income also includes $0.8 million of gains on sales of investment securities in the second quarter 2012 resulting from a partial restructuring of the investment portfolios. Non-interest income was $8.3 million for the first half of 2012, up $5.7 million from the first half of 2011. The growth in the first half of 2012 was primarily driven by $5.6 million of non-interest income attributable to Bancorp Rhode Island.

NON-INTEREST EXPENSE

Non-interest expense of $28.7 million in the second quarter 2012 decreased $3.9 million from the first quarter 2012 and increased $12.8 million from the second quarter 2011. The increase from second quarter 2011 to second quarter 2012 reflects the Company’s acquisition of Bancorp Rhode Island. Compensation expense decreased $0.5 million, or 12.3 percent from first quarter 2012. The $3.9 million decrease in professional services, from $6.5 million in the first quarter 2012 to $2.6 million in the second quarter 2012, reflects the decrease in $5.4 million of merger-related expenses included in the quarter ended March 31, 2012, offset by $1.5 million in professional services associated with infrastructure improvements and charter conversions.

ASSET QUALITY

Non-performing loans and leases totaled $21.1 million, or 0.52 percent of total loans and leases, at June 30, 2012, up from $12.0 million, or 0.30 percent of total loans and leases, at March 31, 2012. Non-performing assets at June 30, 2012 totaled $23.8 million or 0.48 percent of total assets, up from $14.6 million, or 0.30 percent of total assets, at March 31, 2012. These increases in non-performing loans included the two commercial loans discussed previously.

The provision for credit losses was $6.7 million for the second quarter 2012, which included $4.2 million related to the aforementioned problem credit, compared to $3.2 million in the first quarter 2012, and $1.2 million in the second quarter 2011. Net charge-offs for the second quarter 2012 were $3.7 million, or 0.37 percent of average loans and leases on an annualized basis, compared to $0.5 million, or 0.05 percent of average loans and leases, in the first quarter 2012, and $0.4 million, or 0.06 percent of average loans and leases for the second quarter 2011.

The allowance for loan and lease losses was $37.4 million at June 30, 2012, compared to $34.4 million at March 31, 2012 and $30.8 million at June 30, 2011. The allowance for loan and lease losses as a percent of total loans and leases was 0.93 percent at June 30, 2012, compared to 0.87 percent at March 31, 2012 and 1.19 percent at June 30, 2011.

DIVIDEND DECLARED

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

CHARTER CONVERSIONS

On June 29, 2012, two of the Company’s subsidiaries, Brookline Bank and First Ipswich Bank (formerly The First National Bank of Ipswich), converted to state-chartered financial institutions and became members of the Federal Reserve System. As a result, Brookline Bank is now a Massachusetts savings bank and First Ipswich Bank is now a Massachusetts trust company, both of which are now regulated by the Massachusetts Division of Banks and the Board of Governors of the Federal Reserve System.

CONFERENCE CALL

The Company will conduct a conference call/webcast at 11:00 a.m. eastern time on Thursday, July 26, 2012 to discuss the results for the quarter, business highlights and outlook. The call can be accessed by dialing 877-317-6789 (United States) or 412-317-6789 (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 playback is 10016211. The call will also be available live or in a recorded version on the Company’s website www.brooklinebank.com under “Investor Relations.”

ABOUT BROOKLINE BANCORP, INC.

Brookline Bancorp, Inc., a bank holding company with approximately $5.0 billion in assets and 44 branches throughout Massachusetts and Rhode Island, is headquartered in Brookline, Massachusetts and operates as the holding company for Brookline Bank, Bank Rhode Island, and First Ipswich Bank (formerly 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, 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)
				At or for the Three Months Ended June 30,						At or for the Six Months Ended June 30,
				2012			2011			2012			2011
				(In Thousands Except Per Share Data)
Financial Data:
Net interest income				$	42,759		$	27,798		$	86,392		$	53,738
Provision for credit losses					6,678			839			9,925			1,898
Non-interest income					4,721			1,518			8,315			2,643
Non-interest expense					28,699			15,877			61,290			29,326
Income before income taxes					12,103			12,600			23,492			25,157
Net income attributable to Brookline Bancorp, Inc.					7,529			7,001			13,878			14,267
Selected Statistical Data:
Net interest margin (1)					3.81	%		3.74	%		3.85	%		3.75	%
Interest rate spread (1)					3.63	%		3.47	%		3.67	%		3.47	%
Return on average assets					0.61	%		0.91	%		0.57	%		0.96	%
Return on average stockholders' equity					5.04	%		5.62	%		4.64	%		5.73	%
Common Share Data:
Basic earnings per share				$	0.11		$	0.12		$	0.20		$	0.24
Diluted earnings per share					0.11			0.12			0.20			0.24
Dividends paid per share					0.085			0.085			0.17			0.17
Book value per common share					8.55			8.48			8.55			8.48
Tangible book value per common share					6.23			7.60			6.23			7.60
Market value per common share at end of period					8.85			9.27			8.85			9.27
(1) Calculated on a fully-taxable equivalent basis.
	At or for the Three Months Ended
	Jun 30, 2012			Mar 31, 2012			Dec 31, 2011			Sep 30, 2011			Jun 30, 2011
	(Dollars in Thousands)
Balance Sheet:
Total assets	$	4,972,381		$	4,877,124		$	3,299,013		$	3,157,498		$	3,114,582
Loans and leases, gross		4,013,129			3,935,518			2,720,821			2,662,076			2,588,923
Deposits		3,521,206			3,459,333			2,252,331			2,179,605			2,159,133
Brookline Bancorp, Inc. stockholders’ equity		598,865			597,531			503,602			501,890			501,077
Asset Quality:
Non-performing assets	$	23,831		$	14,648		$	8,796		$	10,486		$	11,774
Non-performing assets / total assets		0.48	%		0.30	%		0.27	%		0.33	%		0.38	%
Allowance for loan and lease losses	$	37,431		$	34,428		$	31,703		$	31,128		$	30,847
Allowance for loan and lease losses / total loans and leases		0.93	%		0.87	%		1.17	%		1.17	%		1.19	%
Net loan and lease charge-offs	$	3,675		$	522		$	267		$	610		$	371
Net loan and lease charge-offs to average loans and leases (annualized)		0.37	%		0.05	%		0.04	%		0.09	%		0.06	%
Capital Ratios:
Stockholders’ equity to total assets		12.04	%		12.25	%		15.27	%		15.90	%		16.09	%
Tangible stockholders’ equity to tangible assets		9.07	%		9.18	%		13.93	%		14.49	%		14.66	%

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets (Unaudited)
	June 30,			March 31,			December 31,			June 30,
	2012			2012			2011			2011
	(In Thousands Except Share Data)
ASSETS
Cash and due from banks	$	118,411		$	88,884		$	56,513		$	23,412
Short-term investments		98,677			44,382			49,783			93,861
Total cash and cash equivalents		217,088			133,266			106,296			117,273
Investment securities available for sale		384,533			461,498			217,431			274,960
Restricted equity securities		61,291			53,554			39,283			39,283
Other securities		500			500			-			-
Total securities		446,324			515,552			256,714			314,243
Loans and leases
Commercial real estate:
Commercial real estate mortgage		1,194,158			1,172,049			748,736			682,220
Multi-family mortgage		612,213			596,285			481,459			454,581
Construction		88,759			77,487			40,798			34,254
Total commercial real estate		1,895,130			1,845,821			1,270,993			1,171,055
Commercial loans and leases:
Commercial		365,283			360,095			150,895			144,546
Equipment financing		368,721			344,812			246,118			215,426
Condominium association		43,596			45,872			46,953			39,711
Total commercial loans		777,600			750,779			443,966			399,683
Indirect automobile		581,063			578,622			573,350			590,974
Consumer loans:
Residential mortgage		493,074			490,812			350,213			348,771
Home equity		260,623			262,591			76,527			73,129
Other consumer		5,639			6,893			5,772			5,311
Total consumer loans		759,336			760,296			432,512			427,211
Allowance for loan and lease losses		(37,431	)		(34,428	)		(31,703	)		(30,847	)
Net loans and leases		3,975,698			3,901,090			2,689,118			2,558,076
Premises and equipment, net		56,248			48,908			38,495			34,727
Building held for sale		6,046			6,046			-			-
Deferred tax asset		25,656			24,647			12,681			12,541
Goodwill		137,890			138,914			45,799			45,966
Identified intangible assets		24,578			25,849			5,214			6,033
Other real estate owned and repossessed assets, net		2,765			2,647			1,266			3,869
Monies in escrow – Bancorp Rhode Island, Inc. acquisition		-			-			112,983			-
Other assets		80,088			80,205			30,447			21,854
Total assets	$	4,972,381		$	4,877,124		$	3,299,013		$	3,114,582
LIABILITIES AND EQUITY
Deposits
Demand checking accounts	$	546,036		$	529,945		$	225,284		$	184,480
NOW accounts		185,234			181,299			110,220			139,382
Savings accounts		503,507			511,736			164,744			164,884
Money market savings accounts		1,236,967			1,174,805			946,411			848,467
Certificate of deposit accounts		1,049,462			1,061,548			805,672			821,920
Total deposits		3,521,206			3,459,333			2,252,331			2,159,133
Overnight and short-term borrowings		733,394			698,671			498,570			421,355
Other borrowed funds		60,707			59,865			8,349			4,789
Mortgagors’ escrow accounts		6,942			7,156			6,513			6,847
Accrued expenses and other liabilities		47,328			50,883			26,248			18,742
Total liabilities		4,369,577			4,275,908			2,792,011			2,610,866
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;   75,414,713 shares, 75,585,504 shares, 64,597,180 shares and   64,447,889 shares issued, respectively		754			754			644			644
Additional paid-in capital		618,184			618,031			525,171			524,841
Retained earnings, partially restricted		42,006			40,398			39,993			36,633
Accumulated other comprehensive income		1,969			2,457			1,963			3,254
Treasury stock, at cost, 5,373,733 shares		(62,107	)		(62,107	)		(62,107	)		(62,107	)
Unallocated common stock held by ESOP – 356,064 shares,    367,137 shares, 378,215 shares and 401,316 shares,    respectively		(1,941	)		(2,002	)		(2,062	)		(2,188	)
Total Brookline Bancorp, Inc. stockholders’ equity		598,865			597,531			503,602			501,077
Noncontrolling interest in subsidiary		3,939			3,685			3,400			2,639
Total equity		602,804			601,216			507,002			503,716
Total liabilities and equity	$	4,972,381		$	4,877,124		$	3,299,013		$	3,114,582

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
	Three Months Ended June 30,					Six Months Ended June 30,
	2012			2011		2012			2011
	(In Thousands Except Share Data)
Interest income:
Loans and leases	$	50,135		$	33,786	$	99,778		$	65,411
Debt securities		1,541			1,754		4,770			3,511
Short-term investments		68			26		95			50
Marketable and restricted equity securities		95			55		187			92
Total interest income		51,839			35,621		104,830			69,064
Interest expense:
Deposits (excluding brokered deposits)		5,463			5,138		10,980			10,033
Borrowed funds and subordinated debt		3,617			2,685		7,458			5,293
Total interest expense		9,080			7,823		18,438			15,326
Net interest income		42,759			27,798		86,392			53,738
Provision for credit losses		6,678			839		9,925			1,898
Net interest income after provision for credit losses		36,081			26,959		76,467			51,840
Non-interest income:
Fees, charges and other income		4,168			1,518		7,901			2,563
Loss from investments in affordable housing projects		(244	)		-		(383	)		-
Gain on sales of securities		797			-		797			80
Total non-interest income		4,721			1,518		8,315			2,643
Non-interest expense:
Compensation and employee benefits		14,238			7,795		28,926			14,606
Occupancy		2,503			1,499		5,179			2,873
Equipment and data processing		3,632			2,290		7,275			4,365
Professional services		2,554			1,458		9,008			2,247
FDIC insurance		671			324		1,301			757
Advertising and marketing		774			517		1,476			910
Amortization of identified intangible assets		1,271			455		2,554			750
Other		3,056			1,539		5,571			2,818
Total non-interest expense		28,699			15,877		61,290			29,326
Income before income taxes		12,103			12,600		23,492			25,157
Provision for income taxes		4,320			5,273		9,075			10,281
Net income		7,783			7,327		14,417			14,876
Less net income attributable to noncontrolling interest in subsidiary		254			326		539			609
Net income attributable to Brookline Bancorp, Inc.	$	7,529		$	7,001	$	13,878		$	14,267
Earnings per common share:
Basic	$	0.11		$	0.12	$	0.20		$	0.24
Diluted		0.11			0.12		0.20			0.24
Weighted average common shares outstanding during the period:
Basic		69,677,656			58,629,265		69,671,130			58,620,467
Diluted		69,715,890			58,630,908		69,706,694			58,624,699
Dividends declared per common share	$	0.085		$	0.085	$	0.17		$	0.17

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Asset Quality Analysis (Unaudited)
	Three Months Ended
	Jun 30, 2012			Mar 31, 2012			Dec 31, 2011			Sep 30, 2011			Jun 30, 2011
	(Dollars in Thousands)
NON-PERFORMING ASSETS:
Non-accrual loans:
Commercial real estate mortgage	$	2,120		$	-		$	-		$	-		$	-
Multi-family mortgage		3,129			2,635			1,380			1,373			1,376
Construction		-			-			-			-			-
Total commercial real estate		5,249			2,635			1,380			1,373			1,376
Commercial		6,896			2,146			-			-			-
Equipment financing		2,375			1,226			1,925			1,892			1,757
Condominium association		11			13			15			17			-
Total commercial loans		9,282			3,385			1,940			1,909			1,757
Indirect automobile		91			26			111			59			117
Home equity		784			299			98			98			98
Residential mortgage		3,088			2,999			1,327			1,330			1,381
Other consumer		5			10			10			11			9
Total consumer loans		3,877			3,308			1,435			1,439			1,488
Acquired loans		2,567			2,647			2,664			2,757			3,167
Total non-accrual loans		21,066			12,001			7,530			7,537			7,905
Repossessed vehicles		487			403			389			558			461
Repossessed equipment		196			37			32			129			192
Other real estate owned		2,082			2,207			845			2,262			3,216
Total non-performing assets	$	23,831		$	14,648		$	8,796		$	10,486		$	11,774
Restructured loans on accrual	$	6,443		$	6,692		$	5,205		$	3,456		$	4,905
Non-performing loans and leases as a percentage of total loans and leases		0.52	%		0.30	%		0.28	%		0.28	%		0.31	%
Non-performing assets as a percentage of total assets		0.48	%		0.30	%		0.27	%		0.33	%		0.38	%
PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:
Balance at beginning of period	$	34,428		$	31,703		$	31,128		$	30,847		$	30,048
Provision for credit losses		6,678			3,247			842			891			1,170
Charge-offs		(3,970	)		(788	)		(533	)		(792	)		(606	)
Recoveries		295			266			266			182			235
Net charge-offs		(3,675	)		(522	)		(267	)		(610	)		(371	)
Balance at end of period	$	37,431		$	34,428		$	31,703		$	31,128		$	30,847
Allowance for loan and lease losses as a percent of total loans and leases		0.93	%		0.87	%		1.17	%		1.17	%		1.19	%
NET CHARGE-OFFS:
Commercial real estate	$	(40	)	$	(40	)	$	-		$	30		$	-
Commercial		3,293			263			(18	)		132			79
Auto		225			292			278			448			292
Consumer		197			7			7			-			-
Total net charge-offs	$	3,675		$	522		$	267		$	610		$	371
Net charge-offs to average loans and leases (annualized)		0.37	%		0.05	%		0.04	%		0.09	%		0.06	%

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Average Yields / Costs
	Three Months Ended
	June 30, 2012							March 31, 2012							June 30, 2011
	Average Balance			Interest (1)		Average Yield/Cost		Average Balance			Interest (1)		Average Yield/Cost		Average Balance			Interest (1)		Average Yield/Cost
Assets
Interest-earning assets:
Short-term investments	$	71,675		$	68	0.38	%	$	50,810		$	27	0.21	%	$	71,395		$	26	0.15	%
Debt securities (2)		430,206			1,548	1.44	%		517,843			3,237	2.50	%		313,687			1,762	2.25	%
Equity securities (2)		54,583			110	0.81	%		55,943			108	0.78	%		40,015			64	0.64	%
Commercial real estate loans (3)		1,859,292			23,607	5.10	%		1,829,833			23,468	5.17	%		1,159,065			15,337	5.31	%
Commercial loans(3)		412,476			4,713	4.58	%		393,861			4,588	4.67	%		181,555			2,174	4.80	%
Equipment financing (3)		348,426			7,428	8.53	%		341,736			6,756	7.91	%		214,529			4,414	8.23	%
Indirect automobile loans (3)		580,678			6,033	4.18	%		574,926			6,247	4.37	%		587,351			7,277	4.97	%
Residential mortgage loans (3)		489,688			5,445	4.45	%		491,012			5,544	4.52	%		343,088			3,852	4.49	%
Other consumer loans (3)		266,572			3,003	4.53	%		273,561			3,040	4.47	%		78,759			789	4.02	%
Total interest-earning assets		4,513,596			51,955	4.62	%		4,529,525			53,015	4.70	%		2,989,444			35,695	4.79	%
Allowance for loan losses		(35,962	)						(32,999	)						(30,074	)
Non-interest earning assets		427,299							364,369							134,125
Total assets	$	4,904,933						$	4,860,895						$	3,093,495
Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Deposits:
NOW accounts		189,118			57	0.12	%		179,086		$	53	0.12	%		137,732			60	0.18	%
Savings accounts		505,601			443	0.35	%		511,147			498	0.39	%		165,214			266	0.65	%
Money market savings accounts		1,204,754			2,260	0.75	%		1,143,545			2,152	0.76	%		822,691			1,972	0.96	%
Certificates of deposit		1,056,021			2,702	1.03	%		1,078,276			2,813	1.05	%		830,260			2,840	1.37	%
Total deposits (4)		2,955,494			5,462	0.74	%		2,912,054			5,516	0.76	%		1,955,897			5,138	1.05	%
Federal Home Loan Bank advances		694,746			3,424	1.98	%		723,831			3,671	2.04	%		421,908			2,623	2.49	%
Other borrowings		60,550			193	1.28	%		58,766			170	1.16	%		10,243			62	2.44	%
Total interest-bearing liabilities		3,710,790			9,079	0.98	%		3,694,651			9,357	1.02	%		2,388,048			7,823	1.31	%
Non-interest-bearing demand checking accounts (4)		542,100							509,522							175,994
Other liabilities		50,327							55,182							27,371
Total liabilities		4,303,217							4,259,355							2,591,413
Brookline Bancorp, Inc. stockholders’ equity		597,908							597,978							498,276
Noncontrolling interest in subsidiary		3,808							3,562							3,806
Total liabilities and equity	$	4,904,933						$	4,860,895						$	3,093,495
Net interest income (tax equivalent basis) / interest rate spread (5)					42,876	3.63	%					43,658	3.68	%					27,872	3.47	%
Less adjustment of tax exempt income					117							24							74
Net interest income					42,759						$	43,634							27,798
Net interest margin (6)						3.81	%						3.87	%						3.74	%

(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 0.63%, 0.89% and 0.97% in the three months ended June 30, 2012, March 31, 2012, and June 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
	Six Months Ended
	June 30, 2012							June 30, 2011
	Average Balance			Interest (1)		Average Yield/Cost		Average Balance			Interest (1)		Average Yield/Cost
Assets
Interest-earning assets:
Short-term investments	$	64,780		$	95	0.29	%	$	64,693		$	50	0.16	%
Debt securities (2)		460,483			4,785	2.08	%		310,249			3,525	2.26	%
Equity securities (2)		55,263			219	0.79	%		38,968			105	0.48	%
Commercial real estate loans (3)		1,844,566			46,845	5.10	%		1,108,233			29,351	5.29	%
Commercial loans (3)		405,639			9,326	4.61	%		166,567			3,979	4.80	%
Equipment financing (3)		342,558			14,465	8.45	%		212,073			8,788	8.29	%
Indirect automobile loans (3)		577,802			12,280	4.27	%		573,799			14,595	5.13	%
Residential mortgage loans (3)		490,467			10,989	4.48	%		325,302			7,389	4.54	%
Other consumer loans (3)		270,065			6,043	4.50	%		73,370			1,427	3.92	%
Total interest-earning assets		4,511,623			105,047	4.67	%		2,873,254			69,209	4.82	%
Allowance for loan losses		(34,515	)						(29,927	)
Non-interest earning assets		406,052							124,749
Total assets	$	4,883,160						$	2,968,076
Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Deposits:
NOW accounts		184,102			110	0.12	%	$	130,405		$	107	0.17	%
Savings accounts		508,374			942	0.37	%		149,365			484	0.65	%
Money market savings accounts		1,174,149			4,412	0.76	%		772,528			3,696	0.96	%
Certificates of deposit		1,067,148			5,515	1.04	%		817,300			5,746	1.42	%
Total deposits (4)		2,933,773			10,979	0.75	%		1,869,598			10,033	1.08	%
Federal Home Loan Bank advances		709,373			7,095	2.01	%		405,695			5,193	2.58	%
Other borrowings		59,574			362	1.22	%		9,460			101	2.15	%
Total interest-bearing liabilities		3,702,720			18,436	1.00	%		2,284,753			15,327	1.35	%
Non-interest-bearing demand checking accounts (4)		525,811							155,814
Other liabilities		52,754							26,631
Total liabilities		4,281,285							2,467,198
Brookline Bancorp, Inc. stockholders’ equity		598,277							498,283
Noncontrolling interest in subsidiary		3,598							2,595
Total liabilities and equity	$	4,883,160						$	2,968,076
Net interest income (tax equivalent basis) / interest rate spread (5)					86,611	3.67	%					53,882	3.47	%
Less adjustment of tax exempt income					219							144
Net interest income				$	86,392						$	53,738
Net interest margin (6)						3.85	%						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 0.64% and 1.00% in the six months ended June 30, 2012 and 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
Non-GAAP Financial Information
				Three Months Ended June 30,						Six Months Ended June 30,
				2012			2011			2012			2011
Reconciliation Table - Non-GAAP Financial Information				(In Thousands Except Per Share Data)
Net income attributable to Brookline Bancorp, Inc.				$	7,529		$	7,001		$	13,878		$	14,267
Add:
Merger related expenses (after-tax)					-			774			3,972			924
Net earnings from operations				$	7,529		$	7,775		$	17,850		$	15,191
Earnings per common share:
Basic				$	0.11		$	0.13		$	0.26		$	0.26
Diluted					0.11			0.13			0.26			0.26
Weighted average common shares outstanding during the period:
Basic					69,677,656			58,629,265			69,671,130			58,620,467
Diluted					69,715,890			58,630,908			69,706,694			58,624,699
	Jun 30, 2012			Mar 31, 2012			Dec 31, 2011			Sep 30, 2011			Jun 30, 2011
	(Dollars in Thousands)
Brookline Bancorp, Inc. stockholders’ equity	$	598,865		$	597,531		$	503,602			501,890		$	501,077
Less:
Goodwill		137,890			138,914			45,799			46,203			45,966
Identified intangible assets		24,578			25,849			5,214			5,591			6,033
Tangible stockholders' equity	$	436,397		$	432,768		$	452,589		$	450,096		$	449,078
Total assets		4,972,381			4,877,124			3,299,013			3,157,498			3,114,582
Less:
Goodwill		137,890			138,914			45,799			46,203			45,966
Identified intangible assets		24,578			25,849			5,214			5,591			6,033
Tangible assets	$	4,809,913		$	4,712,361		$	3,248,000		$	3,105,704		$	3,062,583
Tangible stockholders’ equity to tangible assets		9.07	%		9.18	%		13.93	%		14.49	%		14.66	%
	Jun 30, 2012			Mar 31, 2012			Dec 31, 2011			Sep 30, 2011			Jun 30, 2011
	(Dollars in Thousands Except Per Share Data)
Tangible stockholders' equity	$	436,397		$	432,768		$	452,589		$	450,096		$	449,078
Common shares issued		75,414,713			75,585,504			64,597,180			64,580,180			64,447,889
Less:
Treasury shares		5,373,733			5,373,733			5,373,733			5,373,733			5,373,733
Number of common shares outstanding		70,040,980			70,211,771			59,223,447			59,206,447			59,074,156
Tangible book value per common share	$	6.23		$	6.16		$	7.64		$	7.60		$	7.60

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