Brookline Bancorp Announces Strong 2011 Results

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

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

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

BALANCE SHEET

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

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

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

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

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

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

NET INTEREST INCOME

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

NON-INTEREST INCOME

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

NON-INTEREST EXPENSE

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

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

ASSET QUALITY

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

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

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

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

DIVIDEND DECLARED

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

ABOUT BROOKLINE BANCORP, INC.

Brookline Bancorp, Inc., a bank holding company with approximately $4.9 billion in assets and 43 branches throughout Massachusetts and Rhode Island, is headquartered in Brookline, Massachusetts and operates as the holding company for Brookline Bank, Bank Rhode Island, and The First National Bank of Ipswich. The Company provides commercial and retail banking services, and cash management and investment services to customers throughout Central New England. More information about Brookline Bancorp, Inc. and its banks can be found at the following websites: www.brooklinebank.com, www.bankri.com, and www.fnbi.com.

FORWARD-LOOKING STATEMENTS

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

NON-GAAP FINANCIAL MEASURES

The Company uses certain non-GAAP financial measures, such as net earnings from operations, which reflects the reduction in certain professional service fees, tangible book value per common share and tangible stockholders’ equity to tangible assets. These non-GAAP financial measures provide information for investors to effectively analyze financial trends of ongoing business activities, and to enhance comparability with peers across the financial sector. A detailed reconciliation table of the Company's GAAP to the non-GAAP measures is attached.

 
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Selected Financial Highlights (unaudited)
(In thousands except share data)
         
 
At or for the Three months ended Twelve months ended
December 31, December 31,
2011 2010 2011 2010
 
 
Financial Data:
Net interest income $ 28,620 $ 24,636 $ 110,468 $ 96,594
Provision for credit losses 842 1,317 3,631 3,796
Non-interest income 1,384 801 4,793 2,186
Non-interest expense 16,520 12,596 62,925 48,187
Income before income taxes 12,642 11,524 48,705 46,797
Net income attributable to Brookline Bancorp, Inc 7,058 6,398 27,600 26,872
 
Selected Statistical Data:
Net interest margin (1) 3.80 % 3.78 % 3.77 % 3.75 %
Interest rate spread (1) 3.56 % 3.43 % 3.50 % 3.40 %
Return on average assets 0.89 % 0.95 % 0.90 % 1.01 %
Return on average stockholders' equity 5.60 % 5.15 % 5.51 % 5.45 %
 
Common Share Data:
Basic earnings per share $ 0.12 $ 0.11 $ 0.47 $ 0.46
Diluted earnings per share 0.12 0.11 0.47 0.46
Dividends paid per share 0.085 0.085 0.34 0.34
Book value per common share 8.50 8.39 8.50 8.39
Tangible book value per common share 7.64 7.62 7.64 7.62
Market value per common share at end of year 8.44 10.85 8.44 10.85
 
(1) Calculated on a fully-taxable equivalent basis.
 
 
At or for the Three Months Ended

Dec 31, 2011

Sep 30, 2011

Jun 30, 2011

Mar 31, 2011

Dec 31, 2010
Balance Sheet:
Total assets $ 3,299,013 $ 3,157,498 $ 3,114,582 $ 3,057,772 $ 2,720,542
Loans, gross 2,720,821 2,662,076 2,588,923 2,524,989 2,253,538
Deposits 2,252,331 2,179,605 2,159,133 2,118,259 1,810,899
Brookline Bancorp, Inc. stockholders’ equity 503,602 501,890 501,077 497,582 495,443
 
Asset Quality:
Non-performing assets $ 8,796 $ 10,486 $ 11,774 $ 10,787 $ 8,166
Non-performing assets / total assets 0.27 % 0.33 % 0.38 % 0.35 % 0.30 %
Allowance for loan and losses to total loans $ 31,703 $ 31,128 $ 30,847 $ 30,048 $ 29,695
Allowance to total loan and losses 1.17 % 1.17 % 1.19 % 1.19 % 1.32 %
Net loan charge-offs $ 267 $ 610 $ 371 $ 700 $ 1,984
Net loan charge-offs to average loans (annualized) 0.04 % 0.09 % 0.06 % 0.12 % 0.36 %
Non-accretable discount related to First Ipswich 3,476 3,828 4,240 0 0
 
Capital Ratios:
Stockholders’ equity to total assets 15.27 % 15.90 % 16.09 % 16.27 % 18.21 %
Tangible stockholders’ equity to tangible assets 13.93 % 14.49 % 14.66 % 14.81 % 16.83 %

 
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands)
     

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

Common stock, $0.01 par value; 200,000,000 shares authorized;
64,597,180 shares, 64,580,180 shares and 64,445,389
shares issued, respectively 644 644 644
Additional paid-in capital 525,171 525,012 524,515
Retained earnings, partially restricted 39,993 37,926 32,357
Accumulated other comprehensive income 1,963 2,540 2,348
Treasury stock, at cost - 5,373,733 shares (62,107 ) (62,107 ) (62,107 )
Unallocated common stock held by ESOP – 378,215 shares,
389,763 shares and 424,422 shares, respectively   (2,062 )   (2,125 )   (2,314 )
Total Brookline Bancorp, Inc. stockholders’ equity 503,602 501,890 495,443
Noncontrolling interest in subsidiary   3,400     3,097     2,505  
Total equity   507,002     504,987     497,948  
Total liabilities and equity $ 3,299,013   $ 3,157,498   $ 2,720,542  

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

 
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Asset Quality Analysis (unaudited)
(In thousands)
         
Three Months Ended

Dec 31, 2011

Sep 30, 2011

Jun 30, 2011

Mar 31, 2011

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

 
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Average Yields / Costs
(In thousands)
             
 
Three months ended
December 31, 2011 September 30, 2011
Average Average Average Average
balance Interest (1) yield/cost balance Interest (1) yield/cost
 

Assets
Interest-earning assets:
Short-term investments $ 73,791 $ 28 0.15 % $ 83,708 $ 28 0.13 %
Debt securities (2) 231,661 1,307 2.26 262,511 1,495 2.28
Equity securities (2) 40,137 64 0.63 40,137 58 0.56
Commercial real estate loans (3) 1,240,062 16,295 5.26 1,200,838 15,570 5.19
Commercial loans (3) 436,291 7,149 6.54 414,346 6,950 6.70
Indirect automobile loans (3) 573,102 6,722 4.65 580,886 6,996 4.78
Consumer loans (3) 426,167     4,496 4.21 424,800   4,608 4.34
Total interest-earning assets 3,021,211   36,061 4.76 % 3,007,226 35,705 4.74 %
Allowance for loan losses (31,230 ) (31,137 )
Non-interest earning assets   195,477     151,940  
Total assets $ 3,185,458   $ 3,128,029  
 

Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Deposits:
NOW accounts $ 111,798 50 0.18 % $ 132,780 59 0.18 %
Savings accounts 165,619 208 0.50 166,117 250 0.60
Money market savings accounts 917,712 1,960 0.85 859,060 1,971 0.91
Certificates of deposit   806,158     2,536 1.25   812,896   2,690 1.31
Total deposits (4) 2,001,287 4,754 0.94 1,970,853 4,970 1.00
Federal Home Loan Bank advances 420,874 2,602 2.42 429,114 2,661 2.43
Other borrowings   6,206     12 0.74   5,605   11 0.77
Total interest-bearing liabilities 2,428,367   7,368 1.21 % 2,405,572 7,642 1.26 %
Non-interest-bearing demand 223,359 191,832
checking accounts (4)
Other liabilities   25,956     25,466  
Total liabilities 2,677,682 2,622,870
Brookline Bancorp, Inc. stockholders’ equity 504,511 502,345
Noncontrolling interest in subsidiary   3,265     2,814  
Total liabilities and equity $ 3,185,458   $ 3,128,029  
Net interest income (tax equivalent basis)/interest rate spread (5) 28,693 3.56 % 28,063 3.48 %
Less adjustment of tax exempt income   73   73
Net interest income $ 28,620 $ 27,990
Net interest margin (6) 3.80 % 3.73 %
 
 
(1) Tax exempt income on debt securities, equity securities and revenue bonds included in commercial real estate loans is included on a tax equivalent basis.
(2) Average balances include unrealized gains (losses) on securities available for sale. Equity securities include marketable equity securities and restricted equity securities. Dividend payments may not be consistent and average yield on equity securities may vary from month to month.
(3) Loans on non-accrual status are included in the average balances.
(4) Including non-interest-bearing checking accounts, the average interest rate on total deposits was 0.85% and 0.91% in the three months ended December 31, 2011 and September 30, 2011, respectively.
(5) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
(6) Net interest margin represents net interest income (tax equivalent basis) divided by average interest-earning assets.

 
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Average Yields / Costs
(In thousands)
             
 
Twelve months ended
December 31, 2011 December 31, 2010
Average Average Average Average
balance Interest (1) yield/cost balance Interest (1)   yield/cost
 

Assets
Interest-earning assets:
Short-term investments $ 71,404 $ 105 0.15 % $ 60,007 $ 100 0.17 %
Debt securities (2) 278,300 6,327 2.27 300,862 7,624 2.53
Equity securities (2) 39,557 224 0.57 37,395 60 0.16
Commercial real estate loans (3) 1,162,769 61,211 5.26 940,464 50,734 5.39
Commercial loans (3) 402,171 26,985 6.70 310,760 21,732 6.99
Indirect automobile loans (3) 575,635 28,313 4.92 553,929 32,825 5.93
Consumer loans (3) 412,096     17,923 4.35 373,207   18,124 4.86
Total interest-earning assets 2,941,932   141,088 4.79 % 2,576,624 131,199 5.09 %
Allowance for loan losses (30,564 ) (30,617 )
Non-interest earning assets   150,379     109,736  
Total assets $ 3,061,747   $ 2,655,743  
 

Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Deposits:
NOW accounts $ 126,950 216 0.17 % $ 107,713 152 0.14 %
Savings accounts 157,578 942 0.60 103,752 814 0.78
Money market savings accounts 830,780 7,626 0.92 610,253 6,546 1.07
Certificates of deposit   813,470     10,973 1.35 792,451   13,908 1.76
Total deposits (4) 1,928,778 19,757 1.02 1,614,169 21,420 1.33
Federal Home Loan Bank advances 414,432 10,454 2.49 423,526 13,143 3.10
Other borrowings   7,696     125 1.60 1,751   4 0.25
Total interest-bearing liabilities 2,350,906   30,336 1.29 % 2,039,446 34,567 1.69 %
Non-interest-bearing demand 181,078 97,504
checking accounts (4)
Other liabilities   26,091   23,215  
Total liabilities 2,558,075 2,160,165
Brookline Bancorp, Inc. stockholders’ equity 500,855 493,373
Noncontrolling interest in subsidiary   2,817     2,205  
Total liabilities and equity $ 3,061,747   $ 2,655,743  
Net interest income (tax equivalent basis)/interest rate spread (5) 110,752 3.50 % 96,632 3.40 %
Less adjustment of tax exempt income   284   39
Net interest income $ 110,468 $ 96,593
Net interest margin (6) 3.77 % 3.75 %
 
 
(1) Tax exempt income on debt securities, equity securities and revenue bonds included in commercial real estate loans is included on a tax equivalent basis.
(2) Average balances include unrealized gains (losses) on securities available for sale. Equity securities include marketable equity securities and restricted equity securities. Dividend payments may not be consistent and average yield on equity securities may vary from month to month.
(3) Loans on non-accrual status are included in the average balances.
(4) Including non-interest-bearing checking accounts, the average interest rate on total deposits was 0.94% and 1.25% in the twelve months ended December 31, 2011 and 2010, respectively.
(5) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
(6) Net interest margin represents net interest income (tax equivalent basis) divided by average interest-earning assets.

 
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Non-GAAP Financial Information
(In thousands except share data)
         
 
At or for the Three months ended Twelve months ended
December 31, December 31,
Reconciliation Table - Non-GAAP Financial Information 2011 2010 2011 2010
 
 
 
Net income attributable to Brookline Bancorp, Inc. 7,058 6,398 27,600 26,872
Add:
Professional service fees (after-tax)   499     -     1,302     -  
Net earnings from operations   7,557     6,398     28,902     26,872  
 
Earnings per common share:
Basic $ 0.13 $ 0.11 $ 0.49 $ 0.46
Diluted $ 0.13 $ 0.11 $ 0.49 $ 0.46
 
Weighted average common shares outstanding during the year:
Basic 58,652,370 58,598,363 58,633,627 58,578,599
Diluted 58,652,760 58,604,285 58,636,431 58,583,185
 
 
 
Brookline Bancorp, Inc. stockholders’ equity 503,602 495,443 503,602 495,443
Less:
Goodwill 45,799 43,241 45,799 43,241

Identified intangible assets
  5,214     1,871     5,214     1,871  
Tangible stockholder's equity   452,589     450,331     452,589     450,331  
 
Common stock issued 64,597,180 64,445,389 64,597,180 64,445,389
Less:
Treasury shares   5,373,733     5,373,733     5,373,733     5,373,733  
Number of shares outstanding at end of year   59,223,447     59,071,656     59,223,447     59,071,656  
 
Tangible book value per common share 7.64 7.62 7.64 7.62
 
 
 
At or for the Three Months Ended
Dec 31, 2011 Sep 30, 2011 Jun 30, 2011 Mar 31, 2011 Dec 31, 2010
 
Brookline Bancorp, Inc. stockholders’ equity 503,602 501,890 501,077 497,582 495,443
Less:
Goodwill 45,799 46,203 45,966 46,854 43,241

Identified intangible assets
5,214     5,591     6,034     5,569     1,871  
Tangible stockholder's equity 452,589     450,096     449,077     445,159     450,331  
 
Total assets 3,299,013 3,157,498 3,114,582 3,057,772 2,720,542
Less:
Goodwill 45,799 46,203 45,966 46,854 43,241

Identified intangible assets
5,214     5,591     6,034     5,569     1,871  
Tangible assets 3,248,000     3,105,704     3,062,582     3,005,349     2,675,430  
 
 
Tangible stockholders’ equity to tangible assets 13.93 % 14.49 % 14.66 % 14.81 % 16.83 %

Copyright Business Wire 2010

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