-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, KFav3hCRfoxEZKD8la7mTztxsz2WORzopXPCbFpi/Rgel/UBGcJtbhyyriHckMdo ZcfOwyzN8wMlXeQQp+Ar0g== 0001157523-06-007202.txt : 20060725 0001157523-06-007202.hdr.sgml : 20060725 20060724174025 ACCESSION NUMBER: 0001157523-06-007202 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060720 ITEM INFORMATION: Results of Operations and Financial Condition FILED AS OF DATE: 20060725 DATE AS OF CHANGE: 20060724 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BROOKLINE BANCORP INC CENTRAL INDEX KEY: 0001049782 STANDARD INDUSTRIAL CLASSIFICATION: SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035] IRS NUMBER: 000000000 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-23695 FILM NUMBER: 06977276 BUSINESS ADDRESS: STREET 1: 160 WASHINGTON STREET CITY: BROOKLINE STATE: MA ZIP: 02147 BUSINESS PHONE: 6177303500 MAIL ADDRESS: STREET 1: 160 WASHINGTON ST CITY: BROOKLINE STATE: MA ZIP: 02147 8-K 1 a5192521.txt BROOKLINE SAVINGS BANK 8-K SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ------------ FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): July 20, 2006 ----------------------- BROOKLINE BANCORP, INC. ----------------------- (Exact name of registrant as specified in its charter) Delaware 0-23695 04-3402944 - ----------------------------- ------------- -------------------- (State or other jurisdiction (Commission (I.R.S. Employer of incorporation) File No.) Identification No.) 160 Washington Street, Brookline, Massachusetts 02447-0469 - ----------------------------------------------- ------------ (Address of principal executive offices) (Zip Code) (617) 730-3500 ------------------------------------------------------ (Registrant's telephone number, including area code) Not applicable -------------- (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02. Results of Operations and Financial Condition On July 20, 2006, Brookline Bancorp, Inc. (the "Company") announced its earnings for the 2006 second quarter and approval by its Board of Directors of a regular quarterly dividend of $0.085 per share and an extra dividend of $0.20 per share payable August 15, 2006 to stockholders of record on July 31, 2006. A copy of the press release dated July 20, 2006 is attached as Exhibit 99.1 to this report. See exhibit no. 99.1 attached hereto for the press release relating to this matter. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized. BROOKLINE BANCORP, INC. Date: July 24, 2006 By: /s/ Paul R. Bechet -------------------------- Paul R. Bechet Senior Vice President and Chief Financial Officer EXHIBIT INDEX The following exhibits are furnished as part of this report: Exhibit No. Description ----------- ----------- 99.1 Press release of Brookline Bancorp, Inc. dated July 20, 2006 EX-99.1 2 a5192521ex991.txt BROOKLINE SAVINGS BANK EXHIBIT 99.1 Exhibit 99.1 Brookline Bancorp Announces 2006 Second Quarter Earnings and Dividend Declarations BROOKLINE, Mass.--(BUSINESS WIRE)--July 20, 2006--Brookline Bancorp, Inc. (the "Company") (NASDAQ:BRKL) announced today its earnings for the 2006 second quarter and approval by its Board of Directors of a regular quarterly dividend of $0.085 per share and an extra dividend of $0.20 per share payable August 15, 2006 to stockholders of record on July 31, 2006. The Company earned $4,929,000, or $0.08 per share on a basic and diluted basis, for the quarter ended June 30, 2006 compared to $5,441,000, or $0.09 per share on a basic and diluted basis, for the quarter ended June 30, 2005. There were no after-tax securities gains in the 2006 quarter compared to $166,000 in the 2005 quarter. Excluding securities gains, the $346,000, or 6.6%, decline in net income was attributable primarily to the adverse consequences of the current interest rate environment and a reduction in dividend income resulting from a change in policy by the Federal Home Loan Bank of Boston ("FHLB") regarding the timing of its declaration of dividends. The negative effect of these factors on net income was softened by the additional earnings resulting from the purchase of a controlling interest in Eastern Funding LLC ("Eastern"). Net income for the six months ended June 30, 2006 was $10,326,000, or $0.17 per share on a basic and diluted basis, compared to $10,973,000, or $0.18 per share on a basic and diluted basis, for the six months ended June 30, 2005. Included in the 2006 and 2005 six month periods were after-tax securities gains of $358,000 and $547,000, respectively. Excluding securities gains, the $458,000, or 4.4%, decline in net income was attributable primarily to the same factors mentioned above regarding the quarterly operating results. On April 13, 2006, the Company through its wholly-owned subsidiary, Brookline Bank, completed a merger agreement increasing its ownership interest in Eastern from 28.3% to 86.7% through a cash payment of approximately $16.3 million, including transaction costs. Goodwill of $6.7 million and amortizable intangible assets of $1.1 million were recognized as part of the acquisition. Eastern specializes primarily in the financing of coin-operated laundry, dry cleaning and grocery store equipment in the greater metropolitan New York area and selected other locations in the Northeast. Since its founding by Michael J. Fanger in 1997, Eastern has originated over $300 million of high yielding loans and experienced an excellent credit history. The fair value of the loans acquired was $106.8 million and the total of loans outstanding at June 30, 2006 was $117.6 million. Mr. Fanger continues to serve as the chief executive officer of Eastern and he, along with a family member and two senior officers of Eastern, own the 13% minority interest position. After consideration of foregone income on the cash paid to make the acquisition, Eastern contributed approximately $300,000 to the after-tax earnings of the Company in the 2006 second quarter. Interest rate spread has been declining steadily from 2.52% in the 2005 second quarter to 2.17% in the 2006 first quarter and 2.14% in the 2006 second quarter. These declines resulted from a more rapid increase in the average rates paid on deposits and borrowed funds than the increase in the average rates earned on assets. While interest income was 26% higher in the 2006 second quarter than in the 2005 second quarter, interest expense rose 68% between the two quarterly periods. This significant increase in expense resulted primarily from the rate setting actions of the Federal Reserve, increased competition for deposits and a shift in the mix of deposits. Customarily, higher rates are paid on certificates of deposit than on transaction accounts. Certificates of deposit comprised 58% of total retail deposits at June 30, 2006 compared to 55% at December 31, 2005 and 48% at June 30, 2005. As to asset yields, rates earned on mortgage loans typically are higher than the rates earned on the Company's other interest-earning assets. It should be noted, however, that mortgage loan pricing has been subjected to increased competitive pressure and, as a result, it has become increasingly difficult to incorporate the rise in funding costs into the pricing of new mortgage loan originations. Due in part to this development, the average balance of mortgage loans outstanding was $15.5 million lower in the 2006 second quarter than in the 2005 second quarter and $15.4 million lower than in the 2006 first quarter. Commencing in June 2004 and extending through the end of June 2006, the Board of Governors of the Federal Reserve System approved 17 rate increases of 0.25% each in the federal funds rate for overnight borrowings between banks. As a result of these rate setting actions and trends in the economy, a flat yield curve evolved. This has caused the Company's net interest income to shrink. Improvement in net interest income will continue to be difficult to achieve until an upward slope in the yield curve starts to develop. The trend in net interest margin has been similar to that in interest rate spread, although it has started to stabilize as is evident from continuation in the 2006 second quarter of the same 3.11% rate experienced in the 2006 first quarter. The second quarter rate was aided by the inclusion of the high yielding Eastern loan portfolio. The Company is hopeful that the average yield on its assets will improve as a result of the Eastern acquisition and the hiring of two experienced commercial loan officers who will be responsible for growing the Company's commercial loan portfolio. Lending to commercial enterprises can be rewarding not only because the loans are typically priced at attractive rates and on a variable rate basis, but also because of the deposits that accompany the lending relationships. Meaningful improvements in the Company's earnings as a result of these initiatives will take some time to occur. The provision for loan losses declined from $957,000 in the 2005 quarter to $859,000 in the 2006 quarter and from $1,611,000 in the 2005 six month period to $1,607,000 in the 2006 six month period. Of these amounts, $623,000, $757,000, $1,327,000 and $1,505,000, respectively, related to the indirect automobile loan portfolio which grew from $369 million at the end of 2004 to $459 million at the end of 2005 and $520 million at June 30, 2006. Net charge-offs in that portfolio in the six month periods ended June 30, 2006 and 2005 were $899,000 and $556,000, respectively, or 0.36% and 0.28%, respectively, of average indirect automobile loans outstanding during those periods. Indirect automobile loans delinquent more than 30 days were $5.6 million, or 1.07% of the portfolio, at June 30, 2006 compared to $5.5 million, or 1.21% of the portfolio, at December 31, 2005. The provision for loan losses for the 2006 second quarter included $177,000 related to the Eastern loan portfolio. Loans delinquent more than 30 days were $1.0 million, or 0.85%, of the Eastern portfolio at June 30, 2006. In the 2006 six month period, $75,000 was credited to income due primarily to the reduction of mortgage loans outstanding and payments made on loans acquired in connection with the acquisition of Mystic Financial, Inc. ("Mystic") in January 2005. The 2005 six month provision included $284,000 due primarily to the assignment of higher risk ratings to certain loans acquired in the Mystic transaction. The Company's non-performing assets remained modest at $1.2 million, or 0.05% of total assets, at June 30, 2006. The allowance for loan losses was $24.8 million at that date, or 1.38% of total loans. In the 2006 second quarter, the FHLB changed the timing of its declaration of dividends on its common stock. As a result, no dividend was declared by the FHLB in the second quarter and, accordingly, no income was recognized by the Company in that period. It is expected that the FHLB will declare dividends in the 2006 third quarter that are equivalent to two quarterly periods, provided no events occur that would cause the FHLB to decide not to declare such dividends. The amount of dividends recognized by the Company in the first quarter of 2006 and 2005 was $307,000 and $217,000, respectively, and $237,000 in the 2005 second quarter. The lower amounts of non-interest income in the 2006 periods compared to the 2005 periods were due primarily to a decline in mortgage loan prepayment fees from $1,145,000 in the 2005 six month period to $124,000 in the 2006 six month period. Offsetting much of this decline was the fact that no merger/conversion expenses were incurred in the 2006 period compared to $893,000 of such expenses in the 2005 period. Excluding merger/conversion expenses, the increase in non-interest expenses in the 2006 periods compared to the 2005 periods was due primarily to the inclusion of Eastern's expenses commencing in the 2006 second quarter, the expenses related to a new branch that opened in April 2006 and the hiring of new loan officers. The extra dividend of $0.20 per share to be paid on August 15, 2006 is the seventh time since August 2003 that the Board of Directors has approved such a payment. The aggregate amount paid, over $83 million or $1.40 per share, represents a return of capital to stockholders rather than a distribution of earnings. The payout of semi-annual extra dividends has been an effective means to reduce the Company's excess capital in a measured way and to treat all stockholders equally. While it is the intent of the Board of Directors to continue to return capital to stockholders through payment of an extra dividend semi-annually, the magnitude of any future payment will be considered in light of changing opportunities to deploy capital effectively, including the repurchase of Company common stock and expansion of the Company's business through acquisitions. The above text contains statements about future events that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Projections about future events are subject to risks and uncertainties that could cause actual results to differ materially. Factors that could cause such differences include, but are not limited to, general economic conditions, changes in interest rates, regulatory considerations and competition. BROOKLINE BANCORP, INC. AND SUBSIDIARIES Consolidated Balance Sheets (In thousands except share data) June 30, December 31, June 30, 2006 2005 2005 ----------- ----------- ----------- ASSETS - --------------------------------- Cash and due from banks $ 17,528 $ 15,507 $ 17,558 Short-term investments 107,950 102,888 163,762 Securities available for sale 358,029 374,906 339,189 Securities held to maturity (market value of $359, $423 and $875, respectively) 354 410 857 Restricted equity securities 28,567 23,081 23,081 Loans 1,803,791 1,636,755 1,608,295 Allowance for loan losses (24,838) (22,248) (22,175) ---------- ----------- ----------- Net loans 1,778,953 1,614,507 1,586,120 ---------- ----------- ----------- Other investment - 4,662 4,527 Accrued interest receivable 9,931 9,189 8,315 Bank premises and equipment, net 9,920 10,010 11,507 Other real estate owned - - 1,400 Deferred income tax asset 11,679 11,347 8,623 Prepaid income taxes 2,610 - 2,986 Goodwill 42,316 35,615 35,597 Identified intangible assets 9,486 9,471 10,656 Other assets 4,042 3,111 1,968 ----------- ----------- ----------- Total assets $2,381,365 $2,214,704 $2,216,146 =========== =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY - --------------------------------- Retail deposits $1,171,967 $1,168,307 $1,145,995 Brokered deposits 68,096 - - Borrowed funds 512,127 411,507 427,277 Subordinated debt 12,155 12,218 12,280 Mortgagors' escrow accounts 5,693 5,377 5,121 Income taxes payable - 630 - Accrued expenses and other liabilities 18,778 14,215 12,351 ----------- ----------- ----------- Total liabilities 1,788,816 1,612,254 1,603,024 ----------- ----------- ----------- Minority interest in subsidiary 1,257 - - ----------- ----------- ----------- 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; 62,989,384 shares issued 630 630 630 Additional paid-in capital 506,293 512,338 511,918 Retained earnings, partially restricted 108,645 121,042 132,497 Accumulated other comprehensive loss (2,549) (1,577) (287) Treasury stock, at cost - 1,405,611 shares issued (18,144) (18,144) (18,144) Unearned compensation - recognition and retention plans - (8,103) (9,591) Unallocated common stock held by ESOP - 657,123 shares, 685,161 shares and 715,489 shares issued, respectively (3,583) (3,736) (3,901) ----------- ----------- ----------- Total stockholders' equity 591,292 602,450 613,122 ----------- ----------- ----------- ----------- ----------- ----------- Total liabilities and stockholders' equity $2,381,365 $2,214,704 $2,216,146 =========== =========== =========== BROOKLINE BANCORP, INC. AND SUBSIDIARIES Consolidated Statements of Income (In thousands except share data) Three months ended Six months ended June 30, June 30, ----------------------- ----------------------- 2006 2005 2006 2005 ----------- ----------- ----------- ----------- Interest income: Loans $28,151 $22,356 $52,202 $44,079 Debt securities 3,640 2,644 7,259 4,911 Marketable equity securities 30 76 63 150 Restricted equity securities 2 239 311 458 Short-term investments 1,326 1,009 2,438 1,855 ----------- ----------- ----------- ----------- Total interest income 33,149 26,324 62,273 51,453 ----------- ----------- ----------- ----------- Interest expense: Retail deposits 8,385 5,354 15,831 9,912 Brokered deposits 637 - 637 - Borrowed funds 6,213 3,672 11,057 7,053 Subordinated debt 225 168 431 304 ----------- ----------- ----------- ----------- Total interest expense 15,460 9,194 27,956 17,269 ----------- ----------- ----------- ----------- Net interest income 17,689 17,130 34,317 34,184 Provision for loan losses 859 957 1,607 1,611 ----------- ----------- ----------- ----------- Net interest income after provision for loan losses 16,830 16,173 32,710 32,573 ----------- ----------- ----------- ----------- Non-interest income: Fees and charges 961 1,206 1,535 2,053 Gains on securities, net - 259 558 853 Other income (loss) (51) 113 17 290 ----------- ----------- ----------- ----------- Total non-interest income 910 1,578 2,110 3,196 ----------- ----------- ----------- ----------- Non-interest expense: Compensation and employee benefits 5,089 3,979 9,435 8,291 Occupancy 766 685 1,559 1,390 Equipment and data processing 1,522 1,596 2,940 3,186 Advertising and marketing 269 251 455 455 Merger/conversion - 511 - 893 Amortization of identified intangibles 569 593 1,096 1,185 Other 1,231 954 2,216 1,894 ----------- ----------- ----------- ----------- Total non-interest expense 9,446 8,569 17,701 17,294 ----------- ----------- ----------- ----------- Income before income taxes and minority interest 8,294 9,182 17,119 18,475 Provision for income taxes 3,298 3,741 6,726 7,502 ----------- ----------- ----------- ----------- Net income before minority interest 4,996 5,441 10,393 10,973 Minority interest in earnings of subsidiary 67 - 67 - ----------- ----------- ----------- ----------- Net income $ 4,929 $ 5,441 $10,326 $10,973 =========== =========== =========== =========== Earnings per common share: Basic $ 0.08 $ 0.09 $ 0.17 $ 0.18 Diluted 0.08 0.09 0.17 0.18 Weighted average common shares outstanding during the period: Basic 60,363,461 60,086,614 60,336,646 59,984,623 Diluted 61,082,113 60,866,872 61,066,784 60,771,324 BROOKLINE BANCORP, INC. AND SUBSIDIARIES Average Yields / Costs Three months ended June 30, ---------------------------- 2006 ---------------------------- Average Average Interest yield/ balance (1) cost ----------- -------- ------- (Dollars in thousands) Assets - ----------------------------------------- Interest-earning assets: Short-term investments $ 109,539 $ 1,326 4.86 % Debt securities (2) 355,854 3,728 4.19 Equity securities (2) (3) 30,604 44 0.57 Mortgage loans (4) 1,088,971 17,426 6.40 Commercial loans - Eastern Funding (4) 111,875 3,022 10.80 Other commercial loans (4) 67,465 1,140 6.76 Indirect automobile loans (4) 517,906 6,509 5.04 Other consumer loans (4) 2,981 54 7.25 ---------- -------- Total interest-earning assets 2,285,195 33,249 5.82 % -------- ------ Allowance for loan losses (24,624) Non-interest earning assets 106,097 ----------- Total assets $2,366,668 =========== Liabilities and Stockholders' Equity - ----------------------------------------- Interest-bearing liabilities: Deposits: NOW accounts $ 91,160 56 0.25 % Savings accounts 118,965 486 1.64 Money market savings accounts 218,833 1,301 2.38 Retail certificates of deposit 668,202 6,542 3.93 ----------- -------- Total retail deposits 1,097,160 8,385 3.07 Brokered certificates of deposit 47,639 637 5.36 ----------- -------- Total deposits 1,144,799 9,022 3.16 Borrowed funds 529,105 6,213 4.65 Subordinated debt 12,176 225 7.28 ----------- -------- Total interest bearing liabilities 1,686,080 15,460 3.68 % -------- ------ Non-interest-bearing demand checking accounts 62,735 Other liabilities 23,817 ----------- Total liabilities 1,772,632 Stockholders' equity 594,036 ----------- Total liabilities and stockholders' equity $2,366,668 =========== Net interest income (tax equivalent basis)/interest rate spread (5) 17,789 2.14 % ====== Less adjustment of tax exempt income 100 -------- Net interest income $17,689 ======== Net interest margin (6) 3.11 % ====== Three months ended June 30, ----------------------------- 2005 ----------------------------- Average Average Interest yield/ balance (1) cost ------------ -------- ------- (Dollars in thousands) Assets - ----------------------------------------- Interest-earning assets: Short-term investments $ 142,570 $ 1,009 2.84 % Debt securities (2) 339,102 2,671 3.15 Equity securities (2) (3) 31,513 343 4.36 Mortgage loans (4) 1,104,434 16,857 6.11 Commercial loans - Eastern Funding (4) - - - Other commercial loans (4) 75,013 1,104 5.89 Indirect automobile loans (4) 415,010 4,341 4.20 Other consumer loans (4) 3,044 54 7.10 ---------- -------- Total interest-earning assets 2,110,686 26,379 4.99 % -------- ----- Allowance for loan losses (21,526) Non-interest earning assets 101,438 ----------- Total assets $2,190,598 =========== Liabilities and Stockholders' Equity - ----------------------------------------- Interest-bearing liabilities: Deposits: NOW accounts $ 101,296 42 0.17 % Savings accounts 159,875 554 1.39 Money market savings accounts 274,155 1,043 1.53 Retail certificates of deposit 531,164 3,715 2.81 ----------- -------- Total retail deposits 1,066,490 5,354 2.01 Brokered certificates of deposit - - - ----------- -------- Total deposits 1,066,490 5,354 2.01 Borrowed funds 413,234 3,672 3.52 Subordinated debt 12,299 168 5.40 ----------- -------- Total interest bearing liabilities 1,492,023 9,194 2.47 % -------- ----- Non-interest-bearing demand checking accounts 69,188 Other liabilities 14,770 ----------- Total liabilities 1,575,981 Stockholders' equity 614,617 ----------- Total liabilities and stockholders' equity $2,190,598 =========== Net interest income (tax equivalent basis)/interest rate spread (5) 17,185 2.52 % ===== Less adjustment of tax exempt income 55 -------- Net interest income $17,130 ======== Net interest margin (6) 3.26 % ===== (1) Tax exempt income on equity securities and municipal bonds 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 (preferred and common stocks) and restricted equity securities. (3) The Federal Home Loan Bank ("FHLB") changed the timing of its declaration of dividends on its common stock. As a result, no dividend was declared by the FHLB in the second quarter of 2006 and, accordingly, no income was recognized by the Company in that period. It is expected that the FHLB will declare dividends in the third quarter that are equivalent to two quarterly periods, provided no events occur that would cause the FHLB to decide not to declare such dividends. The amount of dividends and income recognized by the Company in the first quarter of 2006 and 2005 was $307,000 and $237,000, respectively, and $217,000 in the second quarter of 2005. (4) Loans on non-accrual status are included in average balances. (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 Selected Financial Ratios and Other Data Three months Six months ended ended June 30, June 30, ----------------- --------------- 2006 2005 2006 2005 -------- -------- ------- ------- Performance Ratios (annualized): Return on average assets 0.83 % 0.99 % 0.90 % 1.01 % Return on average stockholders= equity 3.32 % 3.54 % 3.47 % 3.56 % Interest rate spread 2.14 % 2.52 % 2.15 % 2.55 % Net interest margin 3.11 % 3.26 % 3.10 % 3.28 % Dividends paid per share during period $0.085 $0.085 $0.37 $0.37 At At At June December June 30, 31, 30, 2006 2005 2005 --------- -------- --------- (dollars in thousands except per share data) Capital Ratio: Stockholders= equity to total assets 24.83 % 27.20 % 27.67 % Asset Quality: Non-performing loans $ 341 $ 480 $ 227 Non-performing assets 1,156 973 1,916 Allowance for loan losses 24,838 22,248 22,175 Allowance for loan losses as a percent of total loans 1.38 % 1.36 % 1.38 % Non-performing assets as a percent of total assets 0.05 % 0.04 % 0.09 % Per Share Data: Book value per share $ 9.60 $ 9.78 $ 9.95 Tangible book value per share 8.76 9.05 9.20 Market value per share 13.77 14.17 16.26 CONTACT: Brookline Bancorp, Inc. Paul R. Bechet, 617-278-6405 -----END PRIVACY-ENHANCED MESSAGE-----