Net interest margin for the third quarter 2012 was 4.00 percent, up from 3.81 percent at June 30, 2012. The inclusion of the $1.4 million of yield adjustments in income accounted for 14 basis points of the 19 basis-point increase in net interest margin for the third quarter 2012. The normalized net interest margin of 3.86 percent is up from 3.81 percent at June 30, 2012 largely as a result of Brookline Bancorp’s continuing efforts to maintain loan yields in a persistently challenging interest-rate environment.BALANCE SHEET Total assets at September 30, 2012 grew to $5.1 billion, an annualized increase of 7.2 percent from the prior quarter and 60.3 percent from September 30, 2011. The loan and lease portfolio grew to $4.1 billion as of September 30, 2012, up 13.3 percent annualized from the prior quarter and 14.2 percent annualized from December 31, 2011, after adjustment for the $1.1 billion in loans and leases acquired from Bancorp Rhode Island, Inc., on January 1, 2012. The Company continued to benefit from strong growth in its commercial real estate and commercial loan and lease portfolios, which reached $2.8 billion, or 67.4 percent of total loans, at September 30, 2012. The commercial real estate and commercial loan and lease portfolios increased 18.1 percent annualized during the third quarter 2012 and 21.5 percent annualized for the first nine months of 2012, after adjustment for the $0.8 billion in commercial real estate and commercial loans and leases acquired from Bancorp Rhode Island, to $2.8 billion. These increases offset the annualized 4.7 percent decline from June 30, 2012 to September 30, 2012 in the indirect automobile portfolio, a decline that reflected the Company’s selectiveness in the interest rates at which it is willing to lend in a highly competitive market. Deposits of $3.6 billion at September 30, 2012 were up 5.3 percent annualized from June 30, 2012 and 63.7 percent from September 30, 2011. Core deposits, which increased from 70.2 percent to 70.8 percent of deposits quarter-to-quarter, increased 8.7 percent annualized in the third quarter 2012. Demand checking accounts grew at an annualized rate of 32.3 percent during the quarter ended September 30, 2012. Total borrowings increased 17.2 percent on an annualized basis to $0.8 billion at September 30, 2012.