Brookline Bancorp Announces 2012 First Quarter Results

Brookline Bancorp, Inc. (NASDAQ: BRKL) today reported net income of $6.3 million, or $0.09 fully diluted earnings per share (EPS), for the quarter ended March 31, 2012. These results compare to the first quarter 2011 net income of $7.3 million, or $0.12 fully diluted EPS, and the net income for the fourth quarter 2011 of $7.1 million, or $0.12 fully diluted EPS. Net earnings from operations were $10.3 million, or $0.15 per fully diluted share, after adjustment for merger-related expenses of $4.0 million (after-tax) associated with the January 1, 2012 acquisition of Bancorp Rhode Island, Inc. (“Bancorp Rhode Island”).

“Brookline Bancorp again delivered solid operating results, through continued organic loan and deposit growth and strong credit fundamentals” reported Paul A. Perrault, President and CEO of Brookline Bancorp. “We have already begun to capitalize upon the Bank Rhode Island acquisition and, looking forward, we remain enthusiastic about the growth opportunities in our respective marketplaces and our capacity to deliver on an expanded suite of products and services.”

FIRST QUARTER OPERATING RESULTS

Brookline Bancorp posted net operating earnings of $10.3 million, or $0.15 per diluted share in the first quarter of 2012, after adjustment for merger-related expenses of $4.0 million after tax. Total revenues (net interest income and non-interest income) of $47.2 million increased 57.4 percent as compared to the last quarter of 2011, driven by 53.0 percent growth in net interest income and 141.1 percent growth in other fee income. These results reflect increases in average commercial real estate loans, commercial loans and consumer loans of $589.8 million, $299.2 million and $338.4 million, respectively, and average core deposits of $638.6 million over the fourth quarter of 2011. Net interest margin was 4.08 percent, up from the fourth quarter of 2011, as Brookline Bancorp began to benefit from the Bancorp Rhode Island acquisition and continued to improve low-cost deposit balances.

NET INTEREST INCOME

Net interest income for the first quarter 2012 increased to $43.6 million from $25.9 million in the first quarter 2011 and increased compared to $28.5 million in the fourth quarter 2011. Net interest margin for the first quarter 2012 was 4.08 percent, representing an improvement of 34 basis points from the first quarter 2011 and an increase of 30 basis points from the fourth quarter 2011. These increases in net interest income and margin are largely as a result of the Bancorp Rhode Island acquisition and the continued increase in lower-cost transaction accounts as a percentage of total deposits.

NON-INTEREST INCOME

Non-interest income was $3.6 million for the first quarter 2012, up $2.5 million from the first quarter 2011 and $2.1 million from the fourth quarter 2011. The growth was primarily driven by $2.3 million of non-interest income attributable to Bancorp Rhode Island.

NON-INTEREST EXPENSE

Non-interest expense was $32.6 million in the first quarter 2012, up $19.1 million compared to the first quarter 2011 and up $16.1 million from the fourth quarter 2011. The increase for both periods was primarily due to additional expense related to the acquisition of Bancorp Rhode Island. Included in this increase are $5.4 million of pre-tax merger-related expenses.

BALANCE SHEET

Total assets at March 31, 2012 grew to $4.9 billion with the acquisition of Bancorp Rhode Island, representing an increase of 59.5 percent from the first quarter of 2011 and 47.8 percent from December 31, 2011.

The loan and lease portfolio grew to $3.9 billion as of March 31, 2012. This represented increases of $1.4 billion, or 55.9 percent, from March 31, 2011 and $1.2 billion, or 44.6 percent, from December 31, 2011. Growth from March 31, 2011 was driven by organic growth of 10.0 percent, primarily from commercial real estate and commercial loan and lease organic growth of 15.6 percent and 13.2 percent, respectively, and the addition of $1.2 billion in loans and leases from the Bancorp Rhode Island acquisition. The increase in the loan and lease portfolio from December 31, 2011 was also driven by the addition of $1.2 billion of Bancorp Rhode Island loans and leases as well as organic growth in the commercial real estate loan and lease portfolios of 3.5 percent.

Total deposits were $3.5 billion at March 31, 2012, up 63.3 percent from March 31, 2011 and 53.6 percent from December 31, 2011. Growth from March 31, 2011 was driven by organic growth of 9.0 percent and the addition of $1.2 billion in deposits from the Bancorp Rhode Island acquisition. Transaction deposit (non-certificate of deposit) trends remained positive with growth of 87.2 percent from March 31, 2011 and a 65.7 percent increase from December 31, 2011. The transaction deposit growth from December 31, 2011 was driven by $877.9 million in transaction deposits acquired from Bancorp Rhode Island as well as organic growth among the demand checking and money market savings accounts. For the three months ended March 31, 2012, the average balance of transaction deposits rose to 63.0 percent of the average balance of total deposits compared to 54.9 percent at March 31, 2011 and 59.7 percent from December 31, 2011.

The carrying value of Federal Home Loan Bank (FHLB) advances for the first quarter 2012 were $698.7 million, up $306.3 million from the first quarter 2011 and $200.1 million from December 31, 2011, largely as a result of the Bancorp Rhode Island acquisition.

Brookline Bancorp recorded goodwill of $93.1 million, $28.4 million in loan discounts, core deposit intangibles of $19.4 million, deferred tax assets of $9.3 million, borrowing-related discounts of $16.3 million, and net discounts on various other assets and liabilities of $3.8 million in conjunction with its acquisition of Bancorp Rhode Island.

ASSET QUALITY

Non-performing assets at March 31, 2012 totaled $14.6 million or 0.30 percent of total assets. This represented an increase from $8.8 million, or 0.27 percent of total assets, at December 31, 2011.

Net charge-offs were $522,000, or 0.05 percent of average loans and leases, for the first quarter 2012 compared to net charge-offs for the first quarter 2011 of $706,000, or 0.12 percent of average loans and leases, and $267,000, or 0.04 percent of average loans and leases, in the fourth quarter 2011.

The provision for credit losses was $3.2 million for the first quarter 2012, compared to $1.1 million in the first quarter 2011 and $0.8 million in the fourth quarter 2011. The change in the provision for credit losses was primarily due to provisions on newly originated loans and leases at Bancorp Rhode Island.

The allowance for loan and lease losses was $34.4 million at March 31, 2012 compared to $31.7 million at December 31, 2011 and $30.0 million at March 31, 2011. The allowance for loan and lease losses as a percent of total loans and leases was 0.87 percent at March 31, 2012, compared to 1.17 percent at December 31, 2011 and 1.19 percent at March 31, 2011. The decrease in the allowance for loan and lease losses as a percentage of total loans and leases is due to the loans and leases acquired in the Bancorp Rhode Island acquisition being recorded at fair value on the date of acquisition.

DIVIDEND DECLARED

The Company’s Board of Directors approved a dividend of $0.085 per share. The dividend will be paid on May 25, 2012, to shareholders of record on May 11, 2012.

CONFERENCE CALL

The Company will conduct a conference call/webcast at 2:30pm eastern time on Thursday, April 19 th, 2012 to discuss the results for the quarter, business highlights and outlook. Participants should dial-in to the call ten minutes prior to commencement. The call can be accessed by dialing 877-317-6789 (United States) or 412-317-6789 (internationally). A recorded playback of the call will be available for one week following the call at 877-344-7529 (United States) or 412-317-0088 (internationally). The passcode for playback is 10012838. The call will also be available live or in a recorded version on the Company’s website www.brooklinebank.com under “Investor Relations.”

ABOUT BROOKLINE BANCORP, INC.

Brookline Bancorp, Inc., a bank holding company with approximately $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 excludes items such as merger-related expenses (after tax) from net income, tangible book value per common share and tangible stockholders’ equity to tangible assets. These non-GAAP financial measures provide information for investors to effectively analyze financial trends of ongoing business activities, and to enhance comparability with peers across the financial sector. A detailed reconciliation table of the Company's GAAP to the non-GAAP measures is attached.
 
 
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Selected Financial Highlights (Unaudited)
       

At or for the Three MonthsEnded March 31,
  2012     2011  
(In Thousands Except

Per Share Data)
 
Financial Data:
Net interest income $ 43,634 $ 25,940
Provision for credit losses 3,247 1,059
Non-interest income 3,595 1,126
Non-interest expense 32,592 13,449
Income before income taxes 11,390 12,558
Net income attributable to Brookline Bancorp, Inc. 6,349 7,267
 
Selected Statistical Data:
Net interest margin (1) 4.08 % 3.74 %
Interest rate spread (1) 3.88 % 3.45 %
Return on average assets 0.53 % 1.02 %
Return on average stockholders' equity 4.04 % 5.85 %
 
Common Share Data:
Basic earnings per share $ 0.09 $ 0.12
Diluted earnings per share 0.09 0.12
Dividends paid per share 0.085 0.085
Book value per common share 8.51 8.42
Tangible book value per common share 6.16 7.54
Market value per common share at end of period 9.37 10.53

(1) Calculated on a fully-taxable equivalent basis.
      At or for the Three Months Ended
Mar 31, 2012   Dec 31, 2011   Sep 30, 2011     Jun 30, 2011     Mar 31, 2011
(Dollars in Thousands)
Balance Sheet:    
Total assets $ 4,877,124 $ 3,299,013 $ 3,157,498 $ 3,114,582 $ 3,057,772
Loans and leases, gross 3,935,518 2,720,821 2,662,076 2,588,923 2,524,990
Deposits 3,459,333 2,252,331 2,179,605 2,159,133 2,118,259
Brookline Bancorp, Inc. stockholders’ equity 597,531 503,602 501,890 501,077 497,582
 
Asset Quality:
Non-performing assets $ 14,648 $ 8,796 $ 10,486 $ 11,774 $ 10,787
Non-performing assets / total assets 0.30% 0.27% 0.33% 0.38% 0.35%
Allowance for loan and lease losses $ 34,428 $ 31,703 $ 31,128 $ 30,847 $ 30,048
Allowance for loan and lease losses / total loans and leases 0.87% 1.17% 1.17% 1.19% 1.19%
Net loan charge-offs $ 522 $ 267 $ 610 $ 371 $ 706
Net loan and lease charge-offs to average loans and leases (annualized) 0.05% 0.04% 0.09% 0.06% 0.12%
 
Capital Ratios:
Stockholders’ equity to total assets 12.25% 15.27% 15.90% 16.09% 16.27%
Tangible stockholders’ equity to tangible assets 9.18% 13.93% 14.49% 14.66% 14.81%
 
 

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

March 31,
December 31, March 31,
  2012     2011     2011  
(In Thousands Except Share Data)
ASSETS
Cash and due from banks $ 88,884 $ 56,513 $ 23,241
Short-term investments   44,382     49,783     73,165  
Total cash and cash equivalents   133,266     106,296     96,406  
Investment securities available for sale 461,998 217,431 319,108
Restricted equity securities   53,554     39,283     39,101  
Total securities   515,552     256,714     358,209  
Loans and leases
Commercial real estate:
Commercial real estate mortgage 1,172,051 748,736 665,333
Multi-family mortgage 596,285 481,459 445,540
Construction   77,487     40,798     27,288  
Total commercial real estate   1,845,823     1,270,993     1,138,161  
Commercial loans:
Commercial 360,095 150,895 138,844
Equipment financing 344,812 246,118 213,726
Condominium association   45,872     46,953     38,318  
Total commercial loans   750,779     443,966     390,888  
Indirect automobile   578,622     573,350     576,108  
Consumer loans:
Residential mortgage 490,810 350,213 343,105
Home equity 262,591 76,527 70,931
Other consumer   6,893     5,772     5,797  
Total consumer loans   760,294     432,512     419,833  
Allowance for loan and lease losses   (34,428 )   (31,703 )   (30,048 )
Net loans and leases   3,901,090     2,689,118     2,494,942  
Premises and equipment, net 54,954 38,495 20,063
Deferred tax asset 24,647 12,681 13,552
Goodwill 138,914 45,799 46,854
Identified intangible assets 25,849 5,214 5,569
Other real estate owned and repossessed assets, net 2,647 1,266 1,264
Monies in escrow – Bancorp Rhode Island, Inc. acquisition - 112,983 -
Other assets   80,205     30,447     20,913  
Total assets $ 4,877,124   $ 3,299,013   $ 3,057,772  
 
LIABILITIES AND EQUITY
Deposits
Demand checking accounts $ 529,945 $ 225,284 $ 171,547
NOW accounts 181,299 110,220 143,899
Savings accounts 511,736 164,744 163,642
Money market savings accounts 1,174,805 946,411 801,917
Certificate of deposit accounts   1,061,548     805,672     837,254  
Total deposits   3,459,333     2,252,331     2,118,259  
Overnight and short-term borrowings 47,602 8,349 2,861
Other borrowed funds 710,934 498,570 405,333
Mortgagors’ escrow accounts 7,156 6,513 6,393
Accrued expenses and other liabilities   50,883     26,248     24,556  
Total liabilities   4,275,908     2,792,011     2,557,402  
 
Equity:
Brookline Bancorp, Inc. stockholders’ equity:

Preferred stock, $0.01 par value; 50,000,000 shares authorized; none issued
- - -

Common stock, $0.01 par value; 200,000,000 shares authorized; 75,585,504 shares, 64,597,180 shares and 64,445,389 shares issued, respectively
754 644 644
Additional paid-in capital 618,140 525,171 524,671
Retained earnings, partially restricted 40,398 39,993 34,618
Accumulated other comprehensive income 2,348 1,963 2,007
Treasury stock, at cost, 5,373,733 shares (62,107 ) (62,107 ) (62,107 )

Unallocated common stock held by ESOP – 367,137 shares, 378,215 shares and 412,869 shares, respectively
(2,002 ) (2,062 ) (2,251 )
Total Brookline Bancorp, Inc. stockholders’ equity 597,531 503,602 497,582
Noncontrolling interest in subsidiary   3,685     3,400     2,788  
Total equity   601,216     507,002     500,370  
Total liabilities and equity $ 4,877,124   $ 3,299,013   $ 3,057,772  
 
 

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
       
Three Months Ended March 31,
  2012     2011
(In Thousands Except Share Data)
Interest income:
Loans and leases $ 49,643 $ 31,625
Debt securities 3,229 1,757
Short-term investments 27 24
Marketable and restricted equity securities   92     37
Total interest income   52,991     33,443
 
Interest expense:
Deposits (excluding brokered deposits) 5,517 4,895
Borrowed funds and subordinated debt   3,840     2,608
Total interest expense   9,357     7,503
 
Net interest income 43,634 25,940
Provision for credit losses   3,247     1,059
Net interest income after provision for credit losses   40,387     24,881
 
Non-interest income:
Fees, charges and other income 3,733 1,046
Loss from investments in affordable housing projects (138 ) -
Gain on sales of securities   -     80
Total non-interest income   3,595     1,126
 
Non-interest expense:
Compensation and employee benefits 14,688 6,811
Occupancy 2,676 1,374
Equipment and data processing 3,584 2,075
Professional services 6,453 789
FDIC insurance 630 434
Advertising and marketing 703 393
Amortization of identified intangible assets 1,344 296
Other   2,514     1,277
Total non-interest expense   32,592     13,449
 
Income before income taxes 11,390 12,558
Provision for income taxes   4,756     5,008
Net income 6,634 7,550
 
Less net income attributable to noncontrolling interest in subsidiary   285     283
Net income attributable to Brookline Bancorp, Inc. $ 6,349   $ 7,267
 
Earnings per common share:
Basic $ 0.09 $ 0.12
Diluted 0.09 0.12
 
Weighted average common shares outstanding during the period:
Basic 69,664,619 58,611,488
Diluted 69,665,873 58,618,309
 
Dividends declared per common share $ 0.085 $ 0.085
 
 

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Asset Quality Analysis (Unaudited)
             
Three Months Ended
Mar 31, 2012 Dec 31, 2011 Sep 30, 2011 Jun 30, 2011 Mar 31, 2011
(Dollars in Thousands)
NON-PERFORMING ASSETS:
 
Non-accrual loans:
Commercial real estate mortgage $ - $ - $ - $ - $ -
Multi-family mortgage 2,635 1,380 1,373 1,376 964
Construction   -     -     -     -     2,475  
Total commercial real estate 2,635 1,380 1,373 1,376 3,439
 
Commercial 2,146 - - - -
Equipment financing 1,226 1,925 1,892 1,757 1,390
Condominium association   13     15     17     -     -  
Total commercial loans 3,385 1,940 1,909 1,757 1,390
 
Indirect automobile 26 111 59 117 83
 
Home equity 299 98 98 98 25
Residential mortgage 2,999 1,327 1,330 1,381 1,342
Other consumer   10     10     11     9     9  
Total consumer loans 3,308 1,435 1,439 1,488 1,376
 
Acquired loans   2,647     2,664     2,757     3,167     3,235  

Total non-accrual loans
  12,001     7,530     7,537     7,905     9,523  
 
Repossessed vehicles 403 389 558 461 528
Repossessed equipment 37 32 129 192 309
Other real estate owned 2,207 845 2,262 3,216 427
         
Total non-performing assets $ 14,648   $ 8,796   $ 10,486   $ 11,774   $ 10,787  
 
Restructured loans on accrual $ 6,692   $ 5,205   $ 3,456   $ 4,905   $ 5,138  
 
 
 
Non-accrual loans as a percent of total loans 0.30 % 0.28 % 0.28 % 0.31 % 0.38 %
Non-performing assets as a percent of total assets 0.30 % 0.27 % 0.33 % 0.38 % 0.35 %
 
 
PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:
 
Balance at beginning of period $ 31,703 $ 31,128 $ 30,847 $ 30,048 $ 29,695
Provision for credit losses 3,247 842 891 1,170 1,059
Charge-offs (788 ) (533 ) (792 ) (606 ) (966 )
Recoveries   266     266     182     235     260  
Net charge-offs   (522 )   (267 )   (610 )   (371 )   (706 )
Balance at end of period $ 34,428   $ 31,703   $ 31,128   $ 30,847   $ 30,048  
 
 
Allowance for loan and lease losses as a percent of total loans and leases 0.87 % 1.17 % 1.17 % 1.19 % 1.19 %

 

 

 
 
NET CHARGE-OFFS:
 
Commercial real estate $ (40 ) $ - $ 30 $ - $ -
Commercial 263 (18 ) 132 79 250
Auto 292 278 448 292 457
Consumer   7     7     -     -     (1 )
Total net charge-offs $ 522   $ 267   $ 610   $ 371   $ 706  
 
 
Net charge-offs to average loans and leases (annualized) 0.05 % 0.04 % 0.09 % 0.06 % 0.12 %
 
 

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Average Yields / Costs
                   
 
Three Months Ended
March 31, 2012 March 31, 2011
Average Average Average Average
balance Interest (1) yield/cost balance Interest (1) yield/cost
(Dollars in Thousands)

Assets
Interest-earning assets:
Short-term investments $ 50,810 $ 27 0.21 % $ 55,183 $ 24 0.18 %
Debt securities (2) 517,843 3,237 2.50 306,773 1,763 2.30
Equity securities (2) 55,943 108 0.78 37,907 41 0.43
Commercial real estate loans (3) 1,829,834 23,468 5.67 1,056,836 14,065 5.23
Commercial and industrial loans (3) 393,669 6,384 5.29 151,300 1,779 4.77
Equipment financing loans (3) 341,801 4,960 5.80 209,590 4,390 8.49
Indirect automobile loans (3) 574,926 6,247 4.37 560,097 7,209 5.22
Residential mortgage loans (3) 491,012 5,544 4.52 294,899 3,308 4.55
Other consumer loans (3) 273,561     3,040 6.29 80,366   874 4.41
Total interest-earning assets 4,529,398   53,015 4.91 % 2,752,951 33,453 4.85 %
Allowance for loan losses (38,294 ) (29,779 )
Non-interest earning assets   370,481     118,056  
Total assets $ 4,861,586   $ 2,841,228  
 

Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Deposits:
NOW accounts $ 179,086 $ 53 0.12 % $ 122,998 47 0.15 %
Savings accounts 511,147 498 0.39 133,340 218 0.66
Money market savings accounts 1,143,545 2,152 0.76 721,808 1,724 0.97
Certificates of deposit   1,078,276     2,813 1.05   804,196   2,906 1.47
Total deposits (4) 2,912,054 5,517 0.76 1,782,342 4,895 1.11
Federal Home Loan Bank advances 705,135 3,671 2.09 389,302 2,568 2.64
Other borrowings   58,765     169 1.16   8,667   40 1.85
Total interest-bearing liabilities 3,675,955   9,357 1.02 % 2,180,311 7,503 1.40 %

Non-interest-bearing demand checking accounts (4)
509,522 135,410
Other liabilities   40,676     25,753  
Total liabilities 4,226,153 2,341,474
Brookline Bancorp, Inc. stockholders’ equity 631,871 497,112
Noncontrolling interest in subsidiary   3,562     2,642  
Total liabilities and equity $ 4,861,586   $ 2,841,228  
Net interest income (tax equivalent basis)/interest rate spread (5) 43,657 3.88 % 25,950 3.45 %
Less adjustment of tax exempt income   24   10
Net interest income $ 43,634 $ 25,940
Net interest margin (6) 4.08 % 3.74 %

(1) Tax exempt income on debt securities, equity securities and revenue bonds included in commercial real estate loans is included on a tax equivalent basis.

(2) Average balances include unrealized gains (losses) on securities available for sale. Equity securities include marketable equity securities and restricted equity securities. Dividend payments may not be consistent and average yield on equity securities may vary from month to month.

(3) Loans on non-accrual status are included in the average balances.

(4) Including non-interest-bearing checking accounts, the average interest rate on total deposits was 0.89% and 1.02% in the three months ended March 31, 2012 and March 31, 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
                   
 
Three Months Ended
March 31, 2012 December 31, 2011
Average Average Average Average
balance

Interest (1)
yield/cost balance

Interest (1)
yield/cost
(Dollars in Thousands)

Assets
Interest-earning assets:
Short-term investments $ 50,810 $ 27 0.21 % $ 73,791 $ 28 0.15 %
Debt securities (2) 517,843 3,237 2.50 231,661 1,307 2.26
Equity securities (2) 55,943 108 0.78 40,137 64 0.63
Commercial real estate loans (3) 1,829,834 23,468 5.67 1,240,063 16,296 5.26
Commercial and industrial loans (3) 393,669 6,384 5.29 198,000 2,389 4.81
Equipment financing (3) 341,801 4,960 5.80 238,290 4,652 7.81
Indirect automobile loans (3) 574,926 6,247 4.37 573,102 6,722 4.65
Residential mortgage loans (3) 491,012 5,544 4.52 346,244 3,696 4.27
Other consumer loans (3) 273,561     3,040 6.29 79,924   800 3.98
Total interest-earning assets 4,529,398   53,015 4.91 % 3,021,211 35,954 4.75 %
Allowance for loan losses (38,294 ) (31,230 )
Non-interest earning assets   370,481     195,477  
Total assets $ 4,861,586   $ 3,185,458  
 

Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Deposits:
NOW accounts $ 179,086 $ 53 0.12 % $ 111,798 50 0.18 %
Savings accounts 511,147 498 0.39 165,619 208 0.50
Money market savings accounts 1,143,545 2,152 0.76 917,712 1,960 0.85
Certificates of deposit   1,078,276     2,813 1.05   806,158   2,536 1.25
Total deposits (4) 2,912,054 5,517 0.76 2,001,287 4,754 0.94
Federal Home Loan Bank advances 705,135 3,671 2.09 420,874 2,602 2.45
Other borrowings   58,765     169 1.16   6,206   12 0.75
Total interest-bearing liabilities 3,675,955   9,357 1.02 % 2,428,367 7,367 1.20 %

Non-interest-bearing demand checking accounts (4)
509,522 223,359
Other liabilities   40,676     25,955  
Total liabilities 4,226,153 2,677,682
Brookline Bancorp, Inc. stockholders’ equity 631,871 504,511
Noncontrolling interest in subsidiary   3,562     3,265  
Total liabilities and equity $ 4,861,586   $ 3,185,458  
Net interest income (tax equivalent basis)/interest rate spread (5) 43,657 3.88 % 28,586 3.55 %
Less adjustment of tax exempt income   24   73
Net interest income $ 43,634 $ 28,514
Net interest margin (6) 4.08 % 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 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 0.89% and 0.86% in the three months ended March 31, 2012 and December 31, 2011, respectively.

(5) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.

(6) Net interest margin represents net interest income (tax equivalent basis) divided by average interest-earning assets.
BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Non-GAAP Financial Information
         
Three Months Ended March 31,
  2012   2011
Reconciliation Table - Non-GAAP Financial Information (In Thousands Except Per Share Data)
 
Net income attributable to Brookline Bancorp, Inc. $ 6,349 $ 7,267
Add:
Merger related expenses (after-tax)   3,972   -
Net earnings from operations $ 10,321 $ 7,267
 
Earnings per common share:
Basic $ 0.15 $ 0.12
Diluted $ 0.15 $ 0.12
 
Weighted average common shares outstanding during the period:
Basic 69,664,619 58,611,488
Diluted 69,665,873 58,618,309
 
 
Brookline Bancorp, Inc. stockholders’ equity $ 597,531 $ 497,582
Less:
Goodwill 138,914 46,854
Indentified intangible assets   25,849   5,569
Tangible stockholder's equity $ 432,768 $ 445,159
 
Common stock issued 75,585,504 64,445,389
Less:
Treasury shares   5,373,733   5,373,733
Number of shares outstanding at end of year   70,211,771   59,071,656
 
Tangible book value per common share

$

6.16

$

7.54
 
      At or for the Three Months Ended
Mar 31, 2012   Dec 31, 2011     Sep 30, 2011     Jun 30, 2011     Mar 31, 2011
(Dollars in Thousands)
 
Brookline Bancorp, Inc. stockholders’ equity $ 597,531 $ 503,602 $ 501,890 $ 501,077 $ 497,582
Less:
Goodwill 138,914 45,799 46,203 45,966 46,854
Indentified intangible assets   25,849     5,214     5,591     6,034     5,569  
Tangible stockholder's equity   432,768     452,589     450,096     449,077     445,159  
 
Total assets 4,877,124 3,299,013 3,157,498 3,114,582 3,057,772
Less:
Goodwill 138,914 45,799 46,203 45,966 46,854
Indentified intangible assets   25,849     5,214     5,591     6,034     5,569  
Tangible assets $ 4,712,361   $ 3,248,000   $ 3,105,704   $ 3,062,582   $ 3,005,349  
 
Tangible stockholders’ equity to tangible assets 9.18 % 13.93 % 14.49 % 14.66 % 14.81 %

Copyright Business Wire 2010

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