Brookline Bancorp (BRKL) 8-K Brookline Bancorp Announces Second Quarter Results

Exhibit 99.1

Brookline Bancorp Announces Second Quarter Results

Net Income of $10.0 million, EPS of $0.14

BOSTON--(BUSINESS WIRE)--July 30, 2014--Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced net income of $10.0 million, or $0.14 per basic and diluted share, for the second quarter of 2014, compared to $10.4 million, or $0.15 per basic and diluted share, for the first quarter of 2014.

Paul Perrault, President and Chief Executive Officer of Brookline Bancorp, Inc., stated: "Brookline delivered another solid quarter for our shareholders despite a challenging environment and an extremely competitive marketplace. We are pleased with our continued strong loan growth due to the perseverance of our dedicated bankers. Our traditionally strong asset quality continues to improve and remains at levels that are very favorable amongst our peers.”

BALANCE SHEET

Total assets of $5.6 billion at June 30, 2014 increased $168.7 million from March 31, 2014, and increased $262.4 million from December 31, 2013. The growth in total assets was driven by loans. At June 30, 2014, total loan and leases were $4.6 billion, representing an increase of $141.9 million from March 31, 2014, and an increase of $241.4 million from December 31, 2013. During the second quarter of 2014, total loan and leases grew 12.7 percent on an annualized basis. At June 30, 2014, the commercial real estate and commercial loan and lease portfolios totaled $3.4 billion, or 73.7 percent of total loans and leases, as compared to $3.3 billion, or 73.6 percent at March 31, 2014, and $3.2 billion, or 72.6 percent at December 31, 2013. Strong loan growth continued in our total commercial real estate and commercial loan and lease portfolios, which increased $105.6 million during the second quarter of 2014, or 12.9 percent on an annualized basis.

Cash, cash equivalents, and investment securities increased $8.3 million quarter over quarter to $608.8 million, or 10.9 percent of total assets at June 30, 2014, as compared to $600.5 million, or 11.1 percent of total assets at March 31, 2014, and $585.4 million, or 11.0 percent of total assets at December 31, 2013.

Total deposits of $3.9 billion at June 30, 2014 increased $13.5 million from March 31, 2014, and increased $26.1 million from December 31, 2013. Core deposits, which consist of demand checking, NOW, savings, and money market accounts, increased at a 4.2 percent annualized rate in the second quarter of 2014, raising the core deposit ratio to 76.7 percent at June 30, 2014 from 76.1 percent at March 31, 2014. Demand checking accounts increased $34.5 million, or 20.2 percent on an annualized basis, to $716.9 million, compared to March 31, 2014, and increased $9.9 million, or 2.8 percent on an annualized basis, compared to December 31, 2013. Total borrowings at June 30, 2014 were $1.0 billion, an increase of $149.0 million as compared to March 31, 2014, and an increase of $228.4 million as compared to December 31, 2013.

The ratio of stockholders’ equity to total assets was 11.23 percent at June 30, 2014, as compared to 11.46 percent at March 31, 2014 and 11.53 percent at December 31, 2013. The ratio of tangible stockholders’ equity to tangible assets was 8.73 percent at June 30, 2014, as compared to 8.87 percent at March 31, 2014 and 8.88 percent at December 31, 2013.

NET INTEREST INCOME

Net interest income decreased $1.3 million to $46.4 million during the second quarter of 2014 from the linked quarter, largely as a result of a $2.8 million decrease in accretion on the acquired loan and lease portfolio, offset by a $1.5 million increase in interest income from loans and leases due to volume. Net interest margin decreased 21 basis points to 3.61 percent for the three months ended June 30, 2014, primarily due to the decrease in accretion on the acquired loan and lease portfolio.

PROVISION FOR LOAN LOSSES

The Company recorded a provision for loan and lease losses of $2.2 million for the quarter ended June 30, 2014, compared to $2.4 million during the first quarter of 2014. The decrease of $0.2 million quarter over quarter is due to improved credit quality in the originated and acquired loan and lease portfolios.

Net charge-offs remained constant at $0.7 million for the second and first quarter of 2014. The ratio of net charge-offs to average loans on an annualized basis also remained constant at 0.06 percent for the second and first quarter of 2014.

The allowance for loan losses represented 1.12 percent of total loans and leases at June 30, 2014, compared to 1.13 percent at March 31, 2014. The allowance for loan losses related to originated loans and leases as a percentage of originated loans and leases was 1.31 percent at June 30, 2014, compared to 1.33 percent at March 31, 2014.

NON-INTEREST INCOME

Non-interest income for the quarter ended June 30, 2014 decreased $1.8 million to $3.3 million from the linked quarter. The decrease was largely driven by a decrease in the net gain on sale/disposals of premises and equipment of $1.5 million and a $0.5 million decrease in the gain on sales of loans and leases held-for sale.

NON-INTEREST EXPENSE

Non-interest expense for the quarter ended June 30, 2014 decreased $2.4 million to $31.2 million from the linked quarter. This decrease was largely a result of a $1.3 million decrease in occupancy expense, a $0.7 million decrease in compensation and employee benefits expense and a $0.2 million decrease in professional services expense.

RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

The return on average assets decreased during the second quarter of 2014 to 0.73 percent at June 30, 2014 from 0.78 percent for the first quarter of 2014. The return on average tangible assets decreased to 0.75 percent for the second quarter of 2014 from 0.80 percent for the first quarter of 2014.

The return on average stockholders' equity decreased during the second quarter of 2014 to 6.37 percent from 6.70 percent for the first quarter of 2014. The return on average tangible stockholders’ equity decreased to 8.44 percent for the second quarter of 2014 from 8.92 percent for the first quarter of 2014.

ASSET QUALITY

Nonperforming loans and leases decreased $1.0 million during the second quarter of 2014 to $17.2 million at June 30, 2014 from the linked quarter. The ratio of nonperforming loans and leases to total loans and leases decreased 4 basis points to 0.37 percent at June 30, 2014 from the linked quarter. Nonperforming assets also decreased $1.0 million during the second quarter of 2014 to $18.4 million, or 0.33 percent of total assets, at June 30, 2014 from the linked quarter.

DIVIDEND DECLARED

The Company’s Board of Directors approved, for the 49th consecutive quarter, a dividend of $0.085 per share. The dividend will be paid on August 29, 2014 to shareholders of record on August 15, 2014.

CONFERENCE CALL

The Company will conduct a conference call/webcast at 1:30 PM Eastern Standard Time on Thursday, July 31, 2014 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 10049054. 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 approximately $5.6 billion in assets and branch locations throughout 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 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.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 and 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.

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Selected Financial Highlights (Unaudited)
	At and for the Three Months Ended
	June 30, 2014			March 31, 2014			December 31, 2013			September 30, 2013			June 30, 2013
	(Dollars In Thousands Except Share Data)
Earnings Data:
Net interest income	$	46,434		$	47,734		$	43,774		$	43,412		$	45,363
Provision for credit losses		2,276			2,443			3,887			2,748			2,439
Non-interest income		3,290			5,124			3,907			3,453			3,139
Non-interest expense		31,222			33,576			31,320			29,553			30,816
Income before provision for income taxes		16,226			16,839			12,474			14,564			15,247
Net income attributable to Brookline Bancorp, Inc.		9,976			10,422			7,654			9,429			9,490
Performance Ratios:
Net interest margin (1)		3.61	%		3.82	%		3.54	%		3.56	%		3.78	%
Interest-rate spread (1)		3.47	%		3.67	%		3.38	%		3.40	%		3.62	%
Return on average assets		0.73	%		0.78	%		0.58	%		0.73	%		0.74	%
Return on average tangible assets (non-GAAP)		0.75	%		0.80	%		0.60	%		0.75	%		0.76	%
Return on average stockholders' equity		6.37	%		6.70	%		4.95	%		6.15	%		6.16	%
Return on average tangible stockholders' equity (non-GAAP)		8.44	%		8.92	%		6.61	%		8.27	%		8.28	%
Efficiency ratio		62.79	%		63.52	%		65.69	%		63.06	%		63.53	%
Per Common Share Data:
Net income — Basic	$	0.14		$	0.15		$	0.11		$	0.14		$	0.14
Net income — Diluted		0.14			0.15			0.11			0.13			0.14
Cash dividends declared		0.085			0.085			0.085			0.085			0.085
Book value per share (end of period)		8.98			8.88			8.79			8.80			8.76
Tangible book value per share (end of period) (non-GAAP)		6.79			6.68			6.57			6.57			6.51
Stock price (end of period)		9.37			9.42			9.55			9.40			8.68
Balance Sheet:
Total assets	$	5,587,486		$	5,418,785		$	5,325,106		$	5,236,229		$	5,150,480
Total loans and leases		4,603,913			4,461,997			4,362,465			4,299,477			4,205,015
Total deposits		3,861,147			3,847,650			3,835,006			3,737,978			3,656,981
Brookline Bancorp, Inc. stockholders’ equity		627,663			620,799			613,867			614,811			611,284
Asset Quality:
Nonperforming assets	$	18,407		$	19,430		$	18,079		$	16,738		$	18,986
Nonperforming assets as a percentage of total assets		0.33	%		0.36	%		0.34	%		0.32	%		0.37	%
Allowance for loan and lease losses	$	51,686		$	50,224		$	48,473		$	46,390		$	44,281
Allowance for loan and lease losses as a percentage of total loans and leases		1.12	%		1.13	%		1.11	%		1.08	%		1.05	%
Net loan and lease charge-offs	$	720		$	666		$	1,676		$	621		$	639
Net loan and lease charge-offs as a percentage of average loans and leases		0.06	%		0.06	%		0.16	%		0.06	%		0.06	%
Capital Ratios:
Stockholders’ equity to total assets		11.23	%		11.46	%		11.53	%		11.74	%		11.87	%
Tangible stockholders’ equity to tangible assets (non-GAAP)		8.73	%		8.87	%		8.88	%		9.03	%		9.10	%
(1) Calculated on a fully tax-equivalent basis.

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets (Unaudited)
	June 30, 2014			March 31, 2014			December 31, 2013			September 30, 2013			June 30, 2013
ASSETS	(In Thousands Except Share Data)
Cash and due from banks	$	58,962		$	50,000		$	37,148		$	37,220		$	33,008
Short-term investments		20,771			22,936			55,357			58,195			66,787
Total cash and cash equivalents		79,733			72,936			92,505			95,415			99,795
Investment securities available-for-sale		528,586			527,073			492,428			480,402			479,177
Investment securities held-to-maturity		500			500			500			500			500
Total investment securities		529,086			527,573			492,928			480,902			479,677
Loans and leases held-for-sale		13,890			177			13,372			200			4,221
Loans and leases:
Commercial real estate loans:
Commercial real estate mortgage		1,545,483			1,505,674			1,461,985			1,400,769			1,349,051
Multi-family mortgage		631,371			632,122			627,933			599,601			594,939
Construction		137,731			136,679			113,705			118,090			112,684
Total commercial real estate loans		2,314,585			2,274,475			2,203,623			2,118,460			2,056,674
Commercial loans and leases:
Commercial		478,856			437,957			407,792			409,376			376,507
Equipment financing		552,489			529,670			513,024			513,345			476,724
Condominium association		45,608			43,810			44,794			43,205			41,859
Total commercial loans and leases		1,076,953			1,011,437			965,610			965,926			895,090
Indirect automobile loans		376,314			373,965			400,531			440,949			479,782
Consumer loans:
Residential mortgage		550,814			530,347			528,185			511,835			507,099
Home equity		270,203			261,836			257,461			254,888			257,839
Other consumer		15,044			9,937			7,055			7,419			8,531
Total consumer loans		836,061			802,120			792,701			774,142			773,469
Total loans and leases		4,603,913			4,461,997			4,362,465			4,299,477			4,205,015
Allowance for loan and lease losses		(51,686	)		(50,224	)		(48,473	)		(46,390	)		(44,281	)
Net loans and leases		4,552,227			4,411,773			4,313,992			4,253,087			4,160,734
Restricted equity securities		71,446			66,559			66,559			66,627			66,627
Premises and equipment, net of accumulated depreciation		82,166			81,396			80,505			79,504			76,867
Deferred tax asset		27,799			29,319			31,710			34,322			32,739
Goodwill		137,890			137,890			137,890			137,890			137,890
Identified intangible assets, net of accumulated amortization		15,199			16,026			16,887			18,015			19,168
Other real estate owned and repossessed assets		1,246			1,290			1,578			1,319			1,493
Other assets		76,804			73,846			77,180			68,948			71,269
Total assets	$	5,587,486		$	5,418,785		$	5,325,106		$	5,236,229		$	5,150,480
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest-bearing deposits:
Demand checking accounts	$	716,883		$	682,383		$	707,023		$	667,181		$	644,507
Interest-bearing deposits:
NOW accounts		209,682			212,877			210,602			204,164			196,778
Savings accounts		518,343			517,327			494,734			512,393			503,170
Money market accounts		1,516,023			1,517,290			1,487,979			1,403,881			1,340,024
Certificate of deposit accounts		900,216			917,773			934,668			950,359			972,502
Total interest-bearing deposits		3,144,264			3,165,267			3,127,983			3,070,797			3,012,474
Total deposits		3,861,147			3,847,650			3,835,006			3,737,978			3,656,981
Borrowed funds:
Advances from the FHLBB		1,005,644			855,915			768,773			784,740			785,565
Other borrowed funds		35,360			36,101			43,782			44,062			44,501
Total borrowed funds		1,041,004			892,016			812,555			828,802			830,066
Mortgagors’ escrow accounts		8,359			8,696			7,889			8,008			7,465
Accrued expenses and other liabilities		45,411			45,703			51,485			42,820			41,097
Total liabilities		4,955,921			4,794,065			4,706,935			4,617,608			4,535,609
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		617,709			617,978			617,538			616,968			619,033
Retained earnings, partially restricted		73,373			69,361			64,903			63,210			59,747
Accumulated other comprehensive (loss) income		(3,209	)		(5,936	)		(7,915	)		(4,900	)		(4,441	)
Treasury stock, at cost;
5,144,807 shares, 5,171,985 shares, 5,171,985 shares, 5,154,327 shares, and 5,373,733 shares, respectively		(59,487	)		(59,826	)		(59,826	)		(59,576	)		(62,107	)
Unallocated common stock held by ESOP;
271,524 shares, 281,595 shares, 291,666 shares, 302,229 shares, and 312,792 shares, respectively		(1,480	)		(1,535	)		(1,590	)		(1,648	)		(1,705	)
Total Brookline Bancorp, Inc. stockholders’ equity		627,663			620,799			613,867			614,811			611,284
Noncontrolling interest in subsidiary		3,902			3,921			4,304			3,810			3,587
Total stockholders' equity		631,565			624,720			618,171			618,621			614,871
Total liabilities and stockholders' equity	$	5,587,486		$	5,418,785		$	5,325,106		$	5,236,229		$	5,150,480

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
	Three Months Ended
	June 30, 2014			March 31, 2014			December 31, 2013			September 30, 2013			June 30, 2013
	(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases	$	50,433		$	51,942		$	48,573		$	48,462		$	50,644
Debt securities		2,360			2,259			2,136			2,041			1,934
Marketable and restricted equity securities		539			449			301			298			303
Short-term investments		14			44			39			22			19
Total interest and dividend income		53,346			54,694			51,049			50,823			52,900
Interest expense:
Deposits		4,201			4,291			4,559			4,637			4,743
Borrowed funds		2,711			2,669			2,716			2,774			2,794
Total interest expense		6,912			6,960			7,275			7,411			7,537
Net interest income		46,434			47,734			43,774			43,412			45,363
Provision for credit losses		2,276			2,443			3,887			2,748			2,439
Net interest income after provision for credit losses		44,158			45,291			39,887			40,664			42,924
Non-interest income:
Deposit fees		2,204			1,959			2,188			1,989			1,929
Loan fees		124			436			474			296			386
Loss from investments in affordable housing projects		(539	)		(504	)		(318	)		(558	)		(624	)
(Loss)/gain on sales of securities, net		(13	)		—			397			—			—
Gain on sales of loans and leases held-for-sale		54			602			11			115			183
(Loss)/gain on sale/disposals of premises and equipment, net		(6	)		1,510			—			21			(21	)
Other		1,466			1,121			1,155			1,590			1,286
Total non-interest income		3,290			5,124			3,907			3,453			3,139
Non-interest expense:
Compensation and employee benefits		17,295			18,032			16,675			15,591			16,697
Occupancy		3,154			4,405			3,356			3,312			2,865
Equipment and data processing		4,348			4,377			4,476			4,061			4,262
Professional services		1,487			1,727			1,352			1,329			1,513
FDIC insurance		847			860			724			508			936
Advertising and marketing		776			665			807			758			768
Amortization of identified intangible assets		827			861			1,127			1,154			1,177
Other		2,488			2,649			2,803			2,840			2,598
Total non-interest expense		31,222			33,576			31,320			29,553			30,816
Income before provision for income taxes		16,226			16,839			12,474			14,564			15,247
Provision for income taxes		5,774			5,995			4,325			4,645			5,382
Net income before noncontrolling interest in subsidiary		10,452			10,844			8,149			9,919			9,865
Less net income attributable to noncontrolling interest in subsidiary		476			422			495			490			375
Net income attributable to Brookline Bancorp, Inc.	$	9,976		$	10,422		$	7,654		$	9,429		$	9,490
Earnings per common share:
Basic	$	0.14		$	0.15		$	0.11		$	0.14		$	0.14
Diluted	$	0.14		$	0.15		$	0.11		$	0.13		$	0.14
Weighted average common shares outstanding during the period:
Basic		69,886,576			69,875,473			69,862,175			69,830,953			69,774,703
Diluted		70,012,377			69,983,999			69,951,683			69,913,765			69,833,541
Dividends declared per common share	$	0.085		$	0.085		$	0.085		$	0.085		$	0.085

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
	Six Months Ended June 30,
	2014			2013
	(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases	$	102,375		$	100,063
Debt securities		4,619			3,786
Marketable and restricted equity securities		988			612
Short-term investments		58			50
Total interest and dividend income		108,040			104,511
Interest expense:
Deposits		8,492			9,578
Borrowed funds		5,380			5,903
Total interest expense		13,872			15,481
Net interest income		94,168			89,030
Provision for credit losses		4,719			4,294
Net interest income after provision for credit losses		89,449			84,736
Non-interest income:
Deposit Fees		4,163			3,995
Loan Fees		560			807
Loss from investments in affordable housing projects		(1,043	)		(936	)
Loss on sales of securities, net		(13	)		—
Gain on sales of loans and leases held-for-sale		656			481
Gain/(loss) on sale/disposals of premises and equipment, net		1,504			(21	)
Other		2,587			2,140
Total non-interest income		8,414			6,466
Non-interest expense:
Compensation and employee benefits		35,327			32,994
Occupancy		7,559			5,948
Equipment and data processing		8,725			8,362
Professional services		3,214			3,014
FDIC insurance		1,707			1,870
Advertising and marketing		1,441			1,438
Amortization of identified intangible assets		1,688			2,342
Other		5,137			5,617
Total non-interest expense		64,798			61,585
Income before provision for income taxes		33,065			29,617
Provision for income taxes		11,769			10,511
Net income before noncontrolling interest in subsidiary		21,296			19,106
Less net income attributable to noncontrolling interest in subsidiary		898			802
Net income attributable to Brookline Bancorp, Inc.	$	20,398		$	18,304
Earnings per common share:
Basic	$	0.29		$	0.26
Diluted	$	0.29		$	0.26
Weighted average common shares outstanding during the period:
Basic		69,881,055			69,768,777
Diluted		69,998,219			69,823,615
Dividends declared per common share	$	0.170		$	0.170

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Asset Quality Analysis (Unaudited)
	At and for the Three Months Ended
	June 30, 2014			March 31, 2014			December 31, 2013			September 30, 2013			June 30, 2013
	(Dollars in Thousands)
NONPERFORMING ASSETS:
Loans and leases accounted for on a nonaccrual basis:
Commercial real estate mortgage	$	3,011		$	1,814		$	1,098		$	1,137		$	2,682
Multi-family mortgage		—			—			—			664			1,593
Construction		—			—			—			—			—
Total commercial real estate loans		3,011			1,814			1,098			1,801			4,275
Commercial		6,383			6,350			6,148			4,747			4,680
Equipment financing		3,251			4,633			4,115			4,116			4,014
Condominium association		—			—			1			3			4
Total commercial loans and leases		9,634			10,983			10,264			8,866			8,698
Indirect automobile loans		325			378			259			195			156
Residential mortgage		2,384			3,138			2,875			2,738			2,786
Home equity		1,771			1,799			1,987			1,801			1,557
Other consumer		36			28			18			18			21
Total consumer loans		4,191			4,965			4,880			4,557			4,364
Total nonaccrual loans and leases		17,161			18,140			16,501			15,419			17,493
Other real estate owned		675			855			577			726			1,002
Other repossessed assets		571			435			1,001			593			491
Total nonperforming assets	$	18,407		$	19,430		$	18,079		$	16,738		$	18,986
Loans and leases past due greater than 90 days and still accruing	$	6,653		$	7,774		$	10,913		$	13,548		$	9,640
Troubled debt restructurings on accrual		12,396			11,532			12,759			12,158			9,631
Troubled debt restructurings on nonaccrual		5,992			6,764			5,589			5,905			6,919
Total troubled debt restructurings	$	18,388		$	18,296		$	18,348		$	18,063		$	16,550
Nonperforming loans and leases as a percentage of total loans and leases		0.37	%		0.41	%		0.38	%		0.36	%		0.42	%
Nonperforming assets as a percentage of total assets		0.33	%		0.36	%		0.34	%		0.32	%		0.37	%
PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:
Allowance for loan and lease losses at beginning of period	$	50,224		$	48,473		$	46,390		$	44,281		$	42,532
Charge-offs		(1,196	)		(1,050	)		(2,193	)		(903	)		(1,028	)
Recoveries		476			384			517			282			389
Net charge-offs		(720	)		(666	)		(1,676	)		(621	)		(639	)
Provision for loan and lease losses		2,182			2,417			3,759			2,730			2,388
Allowance for loan and lease losses at end of period	$	51,686		$	50,224		$	48,473		$	46,390		$	44,281
Allowance for loan and lease losses as a percentage of total loans and leases		1.12	%		1.13	%		1.11	%		1.08	%		1.05	%
Allowance for loan and lease losses related to originated loans and leases as a percentage of originated loans and leases		1.31	%		1.33	%		1.32	%		1.31	%		1.34	%
NET CHARGE-OFFS:
Commercial real estate loans	$	—		$	—		$	(9	)	$	7		$	81
Commercial loans and leases		578			300			803			157			295
Indirect automobile loans		55			185			419			396			170
Consumer loans		87			181			463			61			93
Total net charge-offs	$	720		$	666		$	1,676		$	621		$	639
Net loan and lease charge-offs as a percentage of average loans and leases (annualized)		0.06	%		0.06	%		0.16	%		0.06	%		0.06	%

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Average Yields / Costs (Unaudited)
	Three Months Ended
	June 30, 2014			March 31, 2014			June 30, 2013
	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)	$ 527,411	$ 2,360	1.79 %	$ 502,598	$ 2,263	1.80 %	$ 487,271	$ 1,940	1.59 %
Marketable and restricted equity securities (2)	68,543	602	3.52 %	66,954	497	2.99 %	66,988	350	2.10 %
Short-term investments	36,850	14	0.16 %	45,834	44	0.39 %	52,541	19	0.14 %
Total investments	632,804	2,976	1.88 %	615,386	2,804	1.83 %	606,800	2,309	1.52 %
Loans and Leases:
Commercial real estate loans (3)	2,288,018	25,395	4.42 %	2,228,495	25,702	4.61 %	2,034,920	23,863	4.67 %
Commercial loans (3)	504,572	5,246	4.12 %	476,455	4,693	3.94 %	420,194	6,531	6.16 %
Equipment financing (3)	541,029	9,155	6.77 %	522,288	11,037	8.50 %	467,156	8,279	7.10 %
Indirect automobile loans (3)	374,489	3,032	3.25 %	384,833	3,264	3.44 %	494,571	4,523	3.67 %
Residential mortgage loans (3)	532,310	4,918	3.70 %	532,593	4,809	3.65 %	512,975	5,101	3.98 %
Other consumer loans (3)	277,802	2,833	4.09 %	267,204	2,579	3.91 %	264,183	2,508	3.81 %
Total loans and leases	4,518,220	50,579	4.46 %	4,411,868	52,084	4.74 %	4,193,999	50,805	4.83 %
Total interest-earning assets	5,151,024	53,555	4.15 %	5,027,254	54,888	4.38 %	4,800,799	53,114	4.41 %
Allowance for loan and lease losses	(50,809)			(49,087)			(42,954)
Non-interest-earning assets	373,235			383,550			380,299
Total assets	$ 5,473,450			$ 5,361,717			$ 5,138,144
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts	$ 208,859	$ 42	0.08 %	$ 206,226	$ 41	0.08 %	$ 195,269	$ 41	0.09 %
Savings accounts	523,773	303	0.23 %	508,555	303	0.24 %	508,451	316	0.25 %
Money market accounts	1,528,959	1,936	0.51 %	1,505,992	1,959	0.53 %	1,335,300	2,036	0.61 %
Certificates of deposit	901,272	1,920	0.85 %	927,199	1,988	0.87 %	982,257	2,350	0.96 %
Total interest-bearing deposits	3,162,863	4,201	0.53 %	3,147,972	4,291	0.55 %	3,021,277	4,743	0.63 %
Borrowings
Advances from the FHLBB	892,770	2,602	1.17 %	803,729	2,531	1.28 %	760,237	2,682	1.41 %
Other borrowed funds	35,127	109	1.25 %	38,438	138	1.45 %	48,655	112	0.93 %
Total borrowings	927,897	2,711	1.17 %	842,167	2,669	1.29 %	808,892	2,794	1.39 %
Total interest-bearing liabilities	4,090,760	6,912	0.68 %	3,990,139	6,960	0.71 %	3,830,169	7,537	0.79 %
Non-interest-bearing liabilities:
Demand checking accounts	712,961			698,462			640,725
Other non-interest-bearing liabilities	39,219			47,103			47,589
Total liabilities	4,842,940			4,735,704			4,518,483
Brookline Bancorp, Inc. stockholders’ equity	626,371			621,764			616,327
Noncontrolling interest in subsidiary	4,139			4,249			3,334
Total liabilities and equity	$ 5,473,450			$ 5,361,717			$ 5,138,144
Net interest income (tax-equivalent basis) /Interest-rate spread (4)		46,643	3.47 %		47,928	3.67 %		45,577	3.62 %
Less adjustment of tax-exempt income		209			194			214
Net interest income		$ 46,434			$ 47,734			$ 45,363
Net interest margin (5)			3.61 %			3.82 %			3.78 %

(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.

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Average Yields / Costs (Unaudited)
	Six Months Ended
	June 30, 2014							June 30, 2013
	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)	$	515,073		$	4,623	1.80	%	$	479,433		$	3,799	1.58	%
Marketable and restricted equity securities (2)		67,753			1,099	3.26	%		67,764			705	2.09	%
Short-term investments		41,317			58	0.28	%		53,586			50	0.19	%
Total investments		624,143			5,780	1.85	%		600,783			4,554	1.52	%
Loans and Leases:
Commercial real estate loans (3)		2,258,422			51,097	4.51	%		2,018,117			48,159	4.76	%
Commercial loans (3)		489,732			9,939	4.04	%		415,633			11,242	5.39	%
Equipment financing (3)		532,570			20,192	7.60	%		453,642			16,138	7.15	%
Indirect automobile loans (3)		379,633			6,296	3.34	%		510,657			9,439	3.73	%
Residential mortgage loans (3)		532,451			9,727	3.68	%		510,801			10,266	4.04	%
Other consumer loans (3)		272,532			5,412	4.00	%		264,433			5,124	3.91	%
Total loans and leases		4,465,340			102,663	4.60	%		4,173,283			100,368	4.81	%
Total interest-earning assets		5,089,483			108,443	4.26	%		4,774,066			104,922	4.40	%
Allowance for loan and lease losses		(49,953	)						(42,225	)
Non-interest-earning assets		378,363							371,475
Total assets	$	5,417,893						$	5,103,316
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts	$	207,550		$	83	0.08	%	$	192,808		$	86	0.09	%
Savings accounts		516,206			606	0.24	%		511,401			660	0.26	%
Money market accounts		1,517,537			3,895	0.52	%		1,315,056			4,097	0.63	%
Certificates of deposit		914,166			3,908	0.86	%		992,380			4,735	0.96	%
Total interest-bearing deposits		3,155,459			8,492	0.54	%		3,011,645			9,578	0.64	%
Borrowings
Advances from the FHLBB		848,495			5,133	1.22	%		756,773			5,637	1.50	%
Other borrowed funds		36,773			247	1.36	%		54,303			266	0.99	%
Total borrowings		885,268			5,380	1.23	%		811,076			5,903	1.47	%
Total interest-bearing liabilities		4,040,727			13,872	0.69	%		3,822,721			15,481	0.82	%
Non-interest-bearing liabilities:
Demand checking accounts		705,752							624,386
Other non-interest-bearing liabilities		43,141							35,750
Total liabilities		4,789,620							4,482,857
Brookline Bancorp, Inc. stockholders’ equity		624,080							616,868
Noncontrolling interest in subsidiary		4,193							3,591
Total liabilities and equity	$	5,417,893						$	5,103,316
Net interest income (tax-equivalent basis) /Interest-rate spread (4)					94,571	3.57	%					89,441	3.58	%
Less adjustment of tax-exempt income					403							411
Net interest income				$	94,168						$	89,030
Net interest margin (5)						3.71	%						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 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.

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Non-GAAP Financial Information (Unaudited)
	June 30, 2014			March 31, 2014			December 31, 2013			September 30, 2013			June 30, 2013
	(Dollars in Thousands)
Net income, as reported	$	9,976		$	10,422		$	7,654		$	9,429		$	9,490
Average total assets	$	5,473,450		$	5,361,717		$	5,287,482		$	5,199,583		$	5,138,144
Less: Average goodwill and average identified intangible assets, net		153,577			154,447			155,439			156,607			157,799
Average tangible assets	$	5,319,873		$	5,207,270		$	5,132,043		$	5,042,976		$	4,980,345
Return on average tangible assets (annualized)		0.75	%		0.80	%		0.60	%		0.75	%		0.76	%
Average total stockholders’ equity	$	626,371		$	621,764		$	618,385		$	612,866		$	616,327
Less: Average goodwill and average identified intangible assets, net		153,577			154,447			155,439			156,607			157,799
Average tangible stockholders’ equity	$	472,794		$	467,317		$	462,946		$	456,259		$	458,528
Return on average tangible stockholders’ equity (annualized)		8.44	%		8.92	%		6.61	%		8.27	%		8.28	%
Brookline Bancorp, Inc. stockholders’ equity	$	627,663		$	620,799		$	613,867		$	614,811		$	611,284
Less:
Goodwill		137,890			137,890			137,890			137,890			137,890
Identified intangible assets, net		15,199			16,026			16,887			18,015			19,168
Tangible stockholders' equity	$	474,574		$	466,883		$	459,090		$	458,906		$	454,226
Total assets	$	5,587,486		$	5,418,785		$	5,325,106		$	5,236,229		$	5,150,480
Less:
Goodwill		137,890			137,890			137,890			137,890			137,890
Identified intangible assets, net		15,199			16,026			16,887			18,015			19,168
Tangible assets	$	5,434,397		$	5,264,869		$	5,170,329		$	5,080,324		$	4,993,422
Tangible stockholders’ equity to tangible assets		8.73	%		8.87	%		8.88	%		9.03	%		9.10	%
Tangible stockholders' equity	$	474,574		$	466,883		$	459,090		$	458,906		$	454,226
Number of common shares issued		75,744,445			75,744,445			75,744,445			75,744,445			75,744,445
Less:
Treasury shares		5,144,807			5,171,985			5,171,985			5,154,327			5,373,733
Unallocated ESOP shares		271,524			281,595			291,666			302,229			312,792
Unvested restricted shares		434,459			408,651			409,068			429,818			276,011
Number of common shares outstanding		69,893,655			69,882,214			69,871,726			69,858,071			69,781,909
Tangible book value per common share	$	6.79		$	6.68		$	6.57		$	6.57		$	6.51
Allowance for loan and lease losses	$	51,686		$	50,224		$	48,473		$	46,390		$	44,281
Less:
Allowance for acquired loans and leases losses		1,246			1,404			1,632			1,278			620
Allowance for originated loan and lease losses	$	50,440		$	48,820		$	46,841		$	45,112		$	43,661
Total loans and leases	$	4,603,913		$	4,461,997		$	4,362,465		$	4,299,477		$	4,205,015
Less:
Total acquired loans and leases		747,108			779,747			815,412			865,708			938,815
Total originated loans and leases	$	3,856,805		$	3,682,250		$	3,547,053		$	3,433,769		$	3,266,200
Allowance for loan and lease losses related to originated loans and leases as a percentage of originated loans and leases		1.31	%		1.33	%		1.32	%		1.31	%		1.34	%

CONTACT:
Brookline Bancorp, Inc.
Carl M. Carlson, 617-425-5331
Chief Financial Officer and Treasurer
ccarlson@brkl.com