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Brookline Bancorp Announces First Quarter Results

BOSTON, April 26, 2017 (GLOBE NEWSWIRE) -- Brookline Bancorp, Inc. (NASDAQ:BRKL) (the “Company”) today announced net income of $13.4 million, or $0.19 per basic and diluted share, for the first quarter of 2017, compared to $12.8 million, or $0.18 per basic and diluted share, for the first quarter of 2016.

Paul Perrault, President and Chief Executive Officer of the Company, stated: “Brookline Bancorp has experienced solid growth in the first quarter of 2017. We have continued to grow our loan and deposit balances in an intense and competitive market. Entering the second quarter, we look forward to building upon the foundation of success we have achieved as we continue to grow our franchise.”

BALANCE SHEET

Total assets at March 31, 2017 increased $59.6 million to $6.50 billion from $6.44 billion at December 31, 2016, and increased $316.7 million from $6.18 billion at March 31, 2016. At March 31, 2017, total loans and leases were $5.46 billion, representing an increase of $62.9 million from December 31, 2016, and an increase of $331.3 million from March 31, 2016. During the first quarter of 2017, total loans and leases grew 4.7 percent on an annualized basis. Solid loan growth continued in the commercial real estate and commercial loan and lease portfolios, which increased $57.6 million during the first quarter of 2017, or 5.2 percent on an annualized basis.

Investment securities at March 31, 2017 increased $18.4 million to $629.1 million, comprising 9.7 percent of total assets, as compared to $610.8 million, or 9.5 percent of total assets, at December 31, 2016, and increased approximately $9.5 million from $619.6 million, or 10.0 percent of total assets, at March 31, 2016.

Total deposits at March 31, 2017 increased $40.8 million to $4.65 billion from $4.61 billion at December 31, 2016 and increased $258.4 million from $4.39 billion at March 31, 2016. Core deposits, which consists of demand checking, NOW, savings, and money market accounts, decreased $8.8 million from December 31, 2016 and increased $276.0 million from March 31, 2016. The average cost of interest bearing deposits increased slightly to 56 basis points for the three months ended March 31, 2017 from 55 basis points for the three months ended December 31, 2016.

Total borrowings at March 31, 2017 increased $12.7 million to $1.06 billion from $1.04 billion at December 31, 2016 and increased $28.5 million from $1.03 billion at March 31, 2016.

The ratio of stockholders’ equity to total assets was 10.83 percent at March 31, 2017, as compared to 10.80 percent at December 31, 2016, and 11.01 percent at March 31, 2016, respectively. The ratio of tangible stockholders’ equity to tangible assets was 8.79 percent at March 31, 2017, as compared to 8.73 percent at December 31, 2016, and 8.83 percent at March 31, 2016.

NET INTEREST INCOME

Net interest income increased $1.2 million to $53.1 million during the first quarter of 2017 from the quarter ended December 31, 2016. The net interest margin increased 13 basis points to 353 basis points for the three months ended March 31, 2017.

NON-INTEREST INCOME

Non-interest income for the quarter ended March 31, 2017 increased $10.5 million to $15.9 million from $5.4 million for the quarter ended December 31, 2016.

The Company completed the sale of Community Bank System, Inc. (Ticker CBU) stock which it acquired pursuant to the terms of the merger between CBU and Northeast Retirement Services, Inc. (“NRS”). The Company, through its wholly owned subsidiary, Brookline Securities Corp., owned 9,721 shares of NRS stock, and received $319.04 in cash and 14.876 shares of CBU common stock for each share of NRS stock it held. The Company realized a gain of $11.4 million on the NRS investment.

PROVISION FOR CREDIT LOSSES

The Company recorded a provision for credit losses of $13.4 million for the quarter ended March 31, 2017, compared to $3.2 million for the quarter ended December 31, 2016. The increase in the provision for the quarter was driven primarily by $6.3 million in additional reserves on taxi medallion loans and a specific reserve of $4.2 million related to two commercial credits.

Taxi medallion loans totaled $30.6 million at March 31, 2017 with reserve coverage of $7.6 million or 24.7%.

Net charge-offs for the first quarter of 2017 were $1.0 million compared to $8.3 million in the fourth quarter of 2016. The ratio of net charge-offs to average loans on an annualized basis decreased to 7 basis points for the first quarter of 2017 from 62 basis points for the fourth quarter of 2016.

The allowance for loan and lease losses represented 1.21 percent of total loans and leases at March 31, 2017, compared to 0.99 percent at December 31, 2016, and 1.14 percent at March 31, 2016. The allowance for loan and lease losses related to originated loans and leases represented 1.25 percent of originated loans and leases at March 31, 2017, compared to 1.03 percent at December 31, 2016, and 1.20 percent at March 31, 2016.

NON-INTEREST EXPENSE

Non-interest expense for the quarter ended March 31, 2017 increased $1.1 million to $33.8 million from $32.6 million for the quarter ended December 31, 2016. The increase was primarily driven by an increase of $0.1 million in compensation and employee benefits, an increase of $0.1 million in occupancy costs, an increase of $0.2 million in professional services, an increase of $0.2 million in FDIC insurance, and an increase of $0.6 million in other non-interest expense.

PROVISION FOR INCOME TAXES

The effective tax rate was 35.9 percent and 35.1 percent for the three months ended March 31, 2017 and December 31, 2016, respectively.

RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

The return on average assets of 0.83 percent remained unchanged during the first quarter of 2017 from 0.83 percent at December 31, 2016. The return on average tangible assets remained unchanged at 0.85 percent for the first quarter of 2017 from 0.85 percent for the fourth quarter of 2016.

The return on average stockholders' equity decreased during the first quarter of 2017 to 7.58 percent from 7.59 percent for the fourth quarter of 2016. The return on average tangible stockholders’ equity decreased to 9.55 percent for the first quarter of 2017 from 9.60 percent for the fourth quarter of 2016.

ASSET QUALITY

The ratio of nonperforming loans and leases to total loans and leases was 0.83 percent at March 31, 2017 as compared to 0.74 percent at December 31, 2016. Nonperforming loans and leases increased $5.0 million to $45.1 million at March 31, 2017 from $40.1 million at December 31, 2016. Nonperforming assets at March 31, 2017 increased $5.9 million to $47.3 million, or 0.73 percent of total assets, from $41.5 million, or 0.64 percent of total assets, at December 31, 2016.

DIVIDEND DECLARED

The Company’s Board of Directors approved a dividend of $0.09 per share for the quarter ended March 31, 2017. The dividend will be paid on May 26, 2017 to stockholders of record on May 12, 2017.

CONFERENCE CALL

The Company will conduct a conference call/webcast at 1:30 PM Eastern Daylight Time on Thursday, April 27, 2017 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 10105550. The call will be available live and in a recorded version on the Company’s website under “Investor Relations” at www.brooklinebancorp.com.

ABOUT BROOKLINE BANCORP, INC.

Brookline Bancorp, Inc., a bank holding company with $6.5 billion in assets and branch locations in Massachusetts and Rhode Island, is headquartered in Boston, Massachusetts and operates as the holding company for Brookline Bank, Bank Rhode Island, and First Ipswich Bank (the "banks"). The Company provides commercial and retail banking services, cash management and investment services to customers throughout Central New England. More information about Brookline Bancorp, Inc. and its banks can be found at the following websites: www.brooklinebank.com, www.bankri.com, and www.firstipswich.com.

FORWARD-LOOKING STATEMENTS

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

BASIS OF PRESENTATION

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

NON-GAAP FINANCIAL MEASURES

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

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

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Selected Financial Highlights (Unaudited)
At and for the Three Months Ended
March 31,
2017
December 31, 2016 September 30, 2016 June 30,
2016
March 31,
2016
(Dollars In Thousands Except per Share Data)
Earnings Data:
Net interest income$ 53,098 $ 51,854 $ 52,350 $ 50,257 $ 49,203
Provision for credit losses 13,402 3,215 2,215 2,545 2,378
Non-interest income 15,908 5,430 5,329 5,375 6,469
Non-interest expense 33,756 32,607 33,388 32,250 32,053
Income before provision for income taxes 21,848 21,462 22,076 20,837 21,241
Net income attributable to Brookline Bancorp, Inc. 13,445 13,279 13,617 12,654 12,812
Performance Ratios:
Net interest margin (1) 3.53% 3.40% 3.48% 3.44% 3.45%
Interest-rate spread (1) 3.29% 3.24% 3.32% 3.25% 3.26%
Return on average assets (annualized) 0.83% 0.83% 0.86% 0.81% 0.84%
Return on average tangible assets (annualized) (non-GAAP) 0.85% 0.85% 0.88% 0.83% 0.86%
Return on average stockholders' equity (annualized) 7.58% 7.59% 7.83% 7.38% 7.57%
Return on average tangible stockholders' equity (annualized) (non-GAAP) 9.55% 9.60% 9.94% 9.40% 9.69%
Efficiency ratio (2) 48.92% 56.92% 57.89% 57.97% 57.57%
Per Common Share Data:
Net income — Basic$ 0.19 $ 0.19 $ 0.19 $ 0.18 $ 0.18
Net income — Diluted 0.19 0.19 0.19 0.18 0.18
Cash dividends declared 0.09 0.09 0.09 0.09 0.09
Book value per share (end of period) 10.00 9.88 9.90 9.82 9.69
Tangible book value per share (end of period) (non-GAAP) 7.93 7.81 7.81 7.73 7.59
Stock price (end of period) 15.65 16.40 12.19 11.03 11.01
Balance Sheet:
Total assets$ 6,497,721 $ 6,438,129 $ 6,380,312 $ 6,296,502 $ 6,181,030
Total loans and leases 5,461,779 5,398,864 5,332,300 5,259,038 5,130,445
Total deposits 4,651,903 4,611,076 4,564,906 4,485,154 4,393,456
Brookline Bancorp, Inc. stockholders’ equity 703,873 695,544 696,371 689,656 680,417
Asset Quality:
Nonperforming assets$ 47,349 $ 41,476 $ 38,704 $33,809 $ 32,470
Nonperforming assets as a percentage of total assets 0.73% 0.64% 0.61% 0.54% 0.53%
Allowance for loan and lease losses$ 66,133 $ 53,666 $ 58,892 $57,258 $58,606
Allowance for loan and lease losses as a percentage of total loans and leases 1.21% 0.99% 1.10% 1.09% 1.14%
Net loan and lease charge-offs$ 995 $ 8,337 $ 520 $4,018 $400
Net loan and lease charge-offs as a percentage of average loans and leases (annualized) 0.07% 0.62% 0.04% 0.31% 0.03%
Capital Ratios:
Stockholders’ equity to total assets 10.83% 10.80% 10.91% 10.95% 11.01%
Tangible stockholders’ equity to tangible assets (non-GAAP) 8.79% 8.73% 8.82% 8.82% 8.83%
(1) Calculated on a fully tax-equivalent basis.
(2) Calculated as non-interest expense as a percentage of net interest income plus non-interest income.

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets (Unaudited)
March 31, 2017 December 31, 2016 September 30, 2016 June 30,
2016
March 31, 2016
ASSETS(In Thousands Except Share Data)
Cash and due from banks$ 33,565 $ 36,055 $ 32,196 $ 22,677 $ 31,127
Short-term investments 29,178 31,602 32,351 47,265 42,795
Total cash and cash equivalents 62,743 67,657 64,547 69,942 73,922
Investment securities available-for-sale 528,433 523,634 524,295 532,967 536,182
Investment securities held-to-maturity 100,691 87,120 77,094 69,590 83,409
Total investment securities 629,124 610,754 601,389 602,557 619,591
Loans and leases held-for-sale 1,152 13,078 21,109 1,585 3,190
Loans and leases:
Commercial real estate loans:
Commercial real estate mortgage 2,066,599 2,050,382 2,038,477 1,974,289 1,958,057
Multi-family mortgage 733,822 731,186 703,743 721,771 682,317
Construction 150,734 136,999 141,208 144,463 126,024
Total commercial real estate loans 2,951,155 2,918,567 2,883,428 2,840,523 2,766,398
Commercial loans and leases:
Commercial 644,240 635,426 652,316 628,281 616,290
Equipment financing 815,753 799,860 764,647 750,503 721,621
Condominium association 60,396 60,122 53,903 61,962 60,728
Total commercial loans and leases 1,520,389 1,495,408 1,470,866 1,440,746 1,398,639
Consumer loans:
Residential mortgage 631,863 624,349 617,065 624,423 617,501
Home equity 343,386 342,241 340,954 333,527 318,859
Other consumer 14,986 18,299 19,987 19,819 29,048
Total consumer loans 990,235 984,889 978,006 977,769 965,408
Total loans and leases 5,461,779 5,398,864 5,332,300 5,259,038 5,130,445
Allowance for loan and lease losses (66,133) (53,666) (58,892) (57,258) (58,606)
Net loans and leases 5,395,646 5,345,198 5,273,408 5,201,780 5,071,839
Restricted equity securities 68,065 64,511 65,683 64,677 65,438
Premises and equipment, net of accumulated depreciation 76,973 76,176 75,462 76,131 77,128
Deferred tax asset 29,859 25,247 22,894 22,301 24,181
Goodwill 137,890 137,890 137,890 137,890 137,890
Identified intangible assets, net of accumulated amortization 7,601 8,133 8,754 9,377 9,998
Other real estate owned and repossessed assets 2,286 1,399 1,152 751 565
Other assets 86,382 88,086 108,024 109,511 97,288
Total assets$6,497,721 $6,438,129 $6,380,312 $6,296,502 $ 6,181,030
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest-bearing deposits:
Demand checking accounts$ 898,161 $ 900,474 $ 889,278 $ 852,869 $ 793,195
Interest-bearing deposits:
NOW accounts 321,392 323,160 298,629 295,126 286,920
Savings accounts 575,808 613,061 591,156 557,607 555,843
Money market accounts 1,765,895 1,733,359 1,679,797 1,628,550 1,649,348
Certificate of deposit accounts 1,090,647 1,041,022 1,106,046 1,151,002 1,108,150
Total interest-bearing deposits 3,753,742 3,710,602 3,675,628 3,632,285 3,600,261
Total deposits 4,651,903 4,611,076 4,564,906 4,485,154 4,393,456
Borrowed funds:
Advances from the FHLBB 930,001 910,774 900,971 904,685 905,953
Subordinated debentures and notes 83,147 83,105 83,043 83,021 82,978
Other borrowed funds 43,637 50,207 38,639 40,733 39,378
Total borrowed funds 1,056,785 1,044,086 1,022,653 1,028,439 1,028,309
Mortgagors’ escrow accounts 8,032 7,645 8,166 7,419 7,905
Accrued expenses and other liabilities 69,752 72,573 81,670 79,541 64,566
Total liabilities 5,786,472 5,735,380 5,677,395 5,600,553 5,494,236
Stockholders' equity:
Brookline Bancorp, Inc. stockholders’ equity:
Common stock, $0.01 par value; 200,000,000 shares authorized; 75,744,445 shares issued 757 757 757 757 757
Additional paid-in capital 617,364 616,734 616,142 617,738 617,477
Retained earnings, partially restricted 143,766 136,671 129,740 122,469 116,151
Accumulated other comprehensive (loss) income (3,261) (3,818) 4,896 5,969 3,352
Treasury stock, at cost;
4,707,096 shares, 4,707,096 shares, 4,734,512 shares, 4,862,193 shares, and 4,861,554 shares, respectively (53,837) (53,837) (54,151) (56,215) (56,208)
Unallocated common stock held by the Employee Stock Ownership Plan;
168,099 shares, 176,688 shares, 185,787 shares, 194,880 shares, and 203,973 shares, respectively (916) (963) (1,013) (1,062) (1,112)
Total Brookline Bancorp, Inc. stockholders’ equity 703,873 695,544 696,371 689,656 680,417
Noncontrolling interest in subsidiary 7,376 7,205 6,546 6,293 6,377
Total stockholders' equity 711,249 702,749 702,917 695,949 686,794
Total liabilities and stockholders' equity$ 6,497,721 $6,438,129 $6,380,312 $6,296,502 $6,181,030

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
Three Months Ended
March 31, 2017 December 31, 2016 September 30, 2016 June 30,
2016
March 31, 2016
(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases$ 58,558 $ 57,247 $ 57,858 $ 55,369 $ 54,247
Debt securities 3,000 2,881 2,822 3,075 2,932
Marketable and restricted equity securities 726 762 804 729 680
Short-term investments 67 93 47 63 39
Total interest and dividend income 62,351 60,983 61,531 59,236 57,898
Interest expense:
Deposits 5,080 5,195 5,112 5,018 4,745
Borrowed funds 4,173 3,934 4,069 3,961 3,950
Total interest expense 9,253 9,129 9,181 8,979 8,695
Net interest income 53,098 51,854 52,350 50,257 49,203
Provision for credit losses 13,402 3,215 2,215 2,545 2,378
Net interest income after provision for credit losses 39,696 48,639 50,135 47,712 46,825
Non-interest income:
Deposit fees 2,252 2,263 2,289 2,216 2,145
Loan fees 261 322 330 287 330
Loan level derivative income, net 402 265 858 1,210 1,629
Gain on sales of investment securities, net 11,393
Gain on sales of loans and leases held-for-sale 353 1,270 588 345 905
Loss on sale/disposals of premises and equipment, net (26)
Other 1,273 1,310 1,264 1,317 1,460
Total non-interest income 15,908 5,430 5,329 5,375 6,469
Non-interest expense:
Compensation and employee benefits 19,784 19,657 20,369 19,083 18,727
Occupancy 3,645 3,520 3,411 3,391 3,526
Equipment and data processing 4,063 4,028 3,826 3,898 3,714
Professional services 1,106 927 997 962 966
FDIC insurance 855 655 956 843 878
Advertising and marketing 817 823 844 853 861
Amortization of identified intangible assets 532 621 623 621 635
Other 2,954 2,376 2,362 2,599 2,746
Total non-interest expense 33,756 32,607 33,388 32,250 32,053
Income before provision for income taxes 21,848 21,462 22,076 20,837 21,241
Provision for income taxes 7,835 7,524 7,804 7,465 7,599
Net income before noncontrolling interest in subsidiary 14,013 13,938 14,272 13,372 13,642
Less net income attributable to noncontrolling interest in subsidiary 568 659 655 718 830
Net income attributable to Brookline Bancorp, Inc.$ 13,445 $ 13,279 $ 13,617 $ 12,654 $ 12,812
Earnings per common share:
Basic$ 0.19 $ 0.19 $ 0.19 $ 0.18 $ 0.18
Diluted$ 0.19 $ 0.19 $ 0.19 $ 0.18 $ 0.18
Weighted average common shares outstanding during the period:
Basic 70,386,766 70,362,702 70,299,722 70,196,950 70,186,921
Diluted 70,844,096 70,592,204 70,450,760 70,388,438 70,343,408
Dividends declared per common share$ 0.09 $ 0.09 $ 0.09 $ 0.09 $ 0.09

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Asset Quality Analysis (Unaudited)
At and for the Three Months Ended
March 31, 2017 December 31, 2016 September 30, 2016 June 30,
2016
March 31, 2016
(Dollars in Thousands)
NONPERFORMING ASSETS:
Loans and leases accounted for on a nonaccrual basis:
Commercial real estate mortgage$ 5,671 $ 5,340 $ 1,688 $ 2,408 $ 5,440
Multi-family mortgage 1,095 1,404 1,418 1,446 1,446
Total commercial real estate loans 6,766 6,744 3,106 3,854 6,886
Commercial 27,442 22,974 24,051 17,944 15,050
Equipment financing 6,445 6,758 6,652 6,947 5,391
Total commercial loans and leases 33,887 29,732 30,703 24,891 20,441
Residential mortgage 3,001 2,501 1,749 2,048 2,132
Home equity 1,333 951 1,780 1,976 2,104
Other consumer 76 149 214 289 342
Total consumer loans 4,410 3,601 3,743 4,313 4,578
Total nonaccrual loans and leases 45,063 40,077 37,552 33,058 31,905
Other real estate owned 618 618 367 407 408
Other repossessed assets 1,668 781 785 344 157
Total nonperforming assets$ 47,349 $ 41,476 $ 38,704 $33,809 $ 32,470
Loans and leases past due greater than 90 days and still accruing$ 6,515 $ 7,077 $ 8,275 $ 4,151 $ 3,512
Troubled debt restructurings on accrual 13,662 13,883 16,303 15,693 16,697
Troubled debt restructurings on nonaccrual 11,756 11,919 15,715 15,621 14,614
Total troubled debt restructurings$25,418 $25,802 $32,018 $31,314 $31,311
Nonperforming loans and leases as a percentage of total loans and leases 0.83% 0.74% 0.70% 0.63% 0.62%
Nonperforming assets as a percentage of total assets 0.73% 0.64% 0.61% 0.54% 0.53%
PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:
Allowance for loan and lease losses at beginning of period$ 53,666 $ 58,892 $ 57,258 $58,606 $56,739
Charge-offs (1,382) (8,629) (839) (4,324) (875)
Recoveries 387 292 319 306 475
Net charge-offs (995) (8,337) (520) (4,018) (400)
Provision for loan and lease losses 13,462 3,111 2,154 2,670 2,267
Allowance for loan and lease losses at end of period$ 66,133 $53,666 $58,892 $57,258 $58,606
Allowance for loan and lease losses as a percentage of total loans and leases 1.21% 0.99% 1.10% 1.09% 1.14%
Allowance for loan and lease losses related to originated loans and leases as a percentage of originated loans and leases (non-GAAP) 1.25% 1.03% 1.15% 1.13% 1.20%
NET CHARGE-OFFS:
Commercial real estate loans$ (116) $ 635 $ 50 $ 1,153 $ 331
Commercial loans and leases 1,065 7,119 375 2,316 64
Consumer loans 46 583 95 549 5
Total net charge-offs$ 995 $ 8,337 $ 520 $ 4,018 $ 400
Net loan and lease charge-offs as a percentage of average loans and leases (annualized) 0.07% 0.62% 0.04% 0.31% 0.03%

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Average Yields / Costs (Unaudited)
Three Months Ended
March 31, 2017 December 31, 2016 March 31, 2016
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)$ 613,520 $ 3,110 2.03% $ 606,569 $ 2,977 1.96% $ 604,034 $ 3,011 1.99%
Marketable and restricted equity securities (2) 69,508 718 4.13% 66,660 770 4.62% 66,887 679 4.07%
Short-term investments 32,127 67 0.84% 78,053 93 0.48% 41,861 39 0.38%
Total investments 715,155 3,895 2.18% 751,282 3,840 2.04% 712,782 3,729 2.09%
Loans and Leases:
Commercial real estate loans (3) 2,930,345 29,467 4.02% 2,888,967 28,896 3.91% 2,698,098 27,266 4.04%
Commercial loans (3) 699,687 7,113 4.07% 702,273 7,079 3.95% 670,671 6,651 3.93%
Equipment financing (3) 806,139 13,114 6.51% 777,324 12,527 6.45% 726,928 11,750 6.47%
Indirect automobile loans (3) 4.93%
Residential mortgage loans (3) 634,885 5,609 3.53% 627,650 5,512 3.51% 625,351 5,559 3.56%
Other consumer loans (3) 360,791 3,495 3.93% 364,117 3,475 3.78% 342,571 3,270 3.83%
Total loans and leases 5,431,847 58,798 4.33% 5,360,331 57,489 4.29% 5,063,619 54,496 4.30%
Total interest-earning assets 6,147,002 62,693 4.08% 6,111,613 61,329 4.01% 5,776,401 58,225 4.03%
Allowance for loan and lease losses (54,314) (58,337) (57,125)
Non-interest-earning assets 368,495 372,707 373,582
Total assets$ 6,461,183 $ 6,425,983 $6,092,858
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts$ 320,671 55 0.07% $ 307,450 53 0.07% $ 279,414 51 0.07%
Savings accounts 614,085 310 0.20% 628,096 324 0.21% 564,681 344 0.25%
Money market accounts 1,744,534 2,009 0.47% 1,717,989 2,002 0.46% 1,629,054 1,775 0.44%
Certificates of deposit 1,021,949 2,706 1.07% 1,085,763 2,816 1.03% 1,077,639 2,575 0.96%
Total interest-bearing deposits 3,701,239 5,080 0.56% 3,739,298 5,195 0.55% 3,550,788 4,745 0.54%
Borrowings
Advances from the FHLBB 929,822 2,857 1.23% 853,572 2,635 1.21% 863,960 2,669 1.22%
Subordinated debentures and notes 83,124 1,260 6.07% 83,079 1,265 6.09% 82,955 1,256 6.06%
Other borrowed funds 60,634 56 0.38% 46,991 34 0.28% 39,624 25 0.26%
Total borrowings 1,073,580 4,173 1.55% 983,642 3,934 1.56% 986,539 3,950 1.58%
Total interest-bearing liabilities 4,774,819 9,253 0.79% 4,722,940 9,129 0.77% 4,537,327 8,695 0.77%
Non-interest-bearing liabilities:
Demand checking accounts 898,481 910,835 798,869
Other non-interest-bearing liabilities 71,812 85,670 73,700
Total liabilities 5,745,112 5,719,445 5,409,896
Brookline Bancorp, Inc. stockholders’ equity 709,095 699,749 677,101
Noncontrolling interest in subsidiary 6,976 6,789 5,861
Total liabilities and equity$ 6,461,183 $ 6,425,983 $ 6,092,858
Net interest income (tax-equivalent basis) /Interest-rate spread (4) 53,440 3.29% 52,200 3.24% 49,530 3.26%
Less adjustment of tax-exempt income 342 346 327
Net interest income $ 53,098 $ 51,854 $49,203
Net interest margin (5) 3.53% 3.40% 3.45%
(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 on an actual/actual basis.

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Non-GAAP Financial Information (Unaudited)
At and for the Three Months Ended
March 31, 2017 December 31, 2016 September 30, 2016 June 30,
2016
March 31, 2016
(Dollars in Thousands)
Net income, as reported$ 13,445 $ 13,279 $ 13,617 $ 12,654 $ 12,812
Average total assets$ 6,461,183 $ 6,425,983 $ 6,360,097 $ 6,237,463 $ 6,092,858
Less: Average goodwill and average identified intangible assets, net 145,778 146,382 146,997 147,619 148,248
Average tangible assets$ 6,315,405 $ 6,279,601 $ 6,213,100 $ 6,089,844 $ 5,944,610
Return on average tangible assets (annualized) 0.85 % 0.85 % 0.88 % 0.83 % 0.86 %
Average total stockholders’ equity$709,095 $ 699,749 $ 695,205 $ 685,996 $ 677,101
Less: Average goodwill and average identified intangible assets, net 145,778 146,382 146,997 147,619 148,248
Average tangible stockholders’ equity$563,317 $ 553,367 $ 548,208 $ 538,377 $ 528,853
Return on average tangible stockholders’ equity (annualized) 9.55 % 9.60 % 9.94 % 9.40 % 9.69 %
Brookline Bancorp, Inc. stockholders’ equity$703,873 $ 695,544 $ 696,371 $ 689,656 $ 680,417
Less:
Goodwill 137,890 137,890 137,890 137,890 137,890
Identified intangible assets, net 7,601 8,133 8,754 9,377 9,998
Tangible stockholders' equity$ 558,382 $549,521 $ 549,727 $ 542,389 $ 532,529
Total assets$ 6,497,721 $ 6,438,129 $ 6,380,312 $ 6,296,502 $ 6,181,030
Less:
Goodwill 137,890 137,890 137,890 137,890 137,890
Identified intangible assets, net 7,601 8,133 8,754 9,377 9,998
Tangible assets$ 6,352,230 $ 6,292,106 $ 6,233,668 $ 6,149,235 $ 6,033,142
Tangible stockholders’ equity to tangible assets 8.79 % 8.73 % 8.82 % 8.82 % 8.83 %
Tangible stockholders' equity$ 558,382 $ 549,521 $ 549,727 $ 542,389 $ 532,529
Number of common shares issued 75,744,445 75,744,445 75,744,445 75,744,445 75,744,445
Less:
Treasury shares 4,707,096 4,707,096 4,734,512 4,862,193 4,861,554
Unallocated ESOP shares 168,099 176,688 185,787 194,880 203,973
Unvested restricted shares 476,854 476,854 476,938 484,066 486,035
Number of common shares outstanding 70,392,396 70,383,807 70,347,208 70,203,306 70,192,883
Tangible book value per common share$7.93 $ 7.81 $ 7.81 $ 7.73 $ 7.59
Allowance for loan and lease losses$ 66,133 $ 53,666 $ 58,892 $ 57,258 $ 58,606
Less:
Allowance for acquired loans and leases losses 1,304 1,253 1,640 2,178 1,938
Allowance for originated loan and lease losses$64,829 $ 52,413 $ 57,252 $ 55,080 $ 56,668
Total loans and leases$ 5,461,779 $ 5,398,864 $ 5,332,300 $ 5,259,038 $ 5,130,445
Less:
Total acquired loans and leases 295,055 315,304 346,377 371,986 395,782
Total originated loans and leases$5,166,724 $ 5,083,560 $ 4,985,923 $ 4,887,052 $ 4,734,663
Allowance for loan and lease losses related to originated loans and leases as a percentage of originated loans and leases 1.25 % 1.03 % 1.15 % 1.13 % 1.20 %


Source:Brookline Bancorp, Inc.