-----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, Jy53t4I9LnAPdUXUKXJWwGxgwkWUN3aK6nra7ZMQYmzsLWifLGQZr0268V7Hq/Q+ Tm6YN8UReM6Ie2wslJ1Tlg== 0001157523-07-010016.txt : 20071019 0001157523-07-010016.hdr.sgml : 20071019 20071019100236 ACCESSION NUMBER: 0001157523-07-010016 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20071018 ITEM INFORMATION: Results of Operations and Financial Condition FILED AS OF DATE: 20071019 DATE AS OF CHANGE: 20071019 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: 071180151 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 a5521838.txt BROOKLINE BANCORP, INC. 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): October 18, 2007 ------------------------- BROOKLINE BANCORP, INC. ------------------------- (Exact name of registrant as specified in its charter) Delaware 0-23695 04-3402944 - ----------------------------- --------------------- ------------------- (State or other jurisdiction (Commission File No.) (I.R.S. Employer of incorporation) 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, Declaration of Dividends On October 18, 2007, Brookline Bancorp, Inc. (the "Company") announced its earnings for the 2007 third quarter and approval by the Board of Directors of a regular quarterly dividend of $0.085 per share payable November 15, 2007 to stockholders of record on October 31, 2007. 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: October 19, 2007 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 October 18, 2007 EX-99.1 2 a5521838ex991.txt EXHIBIT 99.1 Exhibit 99.1 Brookline Bancorp Announces 2007 Third Quarter Earnings and Dividend Declaration BROOKLINE, Mass.--(BUSINESS WIRE)--Oct. 18, 2007--Brookline Bancorp, Inc. (the "Company") (NASDAQ: BRKL) announced today its earnings for the 2007 third quarter and approval by the Board of Directors of a regular quarterly dividend of $0.085 per share payable November 15, 2007 to stockholders of record on October 31, 2007. The Company earned $4,249,000, or $0.07 per share on a basic and diluted basis, for the quarter ended September 30, 2007 compared to $5,109,000, or $0.08 per share on a basic and diluted basis, for the quarter ended September 30, 2006. The decline in net income was attributable primarily to lower dividend income from the Federal Home Loan Bank of Boston ("FHLB"), a higher provision for loan losses and higher expenses for professional services and loan collection costs. As a result of a change in policy regarding the timing of dividend declarations, the FHLB declared cash dividends on its common stock in the 2006 third quarter that were equivalent to two quarters of income. Of the $761,000 of dividend income received in the 2006 third quarter, $378,000 ($220,000 on an after-tax basis) is the amount that would have been recognized in the 2006 second quarter if the FHLB had not changed its policy. Net income for the nine months ended September 30, 2007 was $14,043,000, or $0.24 per share ($0.23 per share on a diluted basis), compared to $15,435,000, or $0.25 per share on a basic and diluted basis. These earnings include the operating results of Eastern Funding LLC ("Eastern") since April 2006, the date the Company acquired a controlling interest in Eastern. The 2006 period included gains on the sale of marketable equity securities of $558,000 ($358,000 on an after-tax basis); no securities were sold in the 2007 period. The decline in net income was also attributable primarily to the same factors depressing third quarter results, exclusive of the FHLB dividend matter. Interest rate spread declined from 2.16% in the 2006 nine month period to 2.13% in the 2007 nine month period and from 2.17% in the 2006 third quarter to 2.14% in the 2007 third quarter, but improved from 2.11% in the 2007 first quarter and 2.13% in the 2007 second quarter. Net interest margin increased from 3.13% in the 2006 nine month period to 3.18% in the 2007 nine month period. The improvement in net interest margin resulted primarily from an increase in higher yielding loans. Net interest margin, however, declined from 3.20% in the 2007 first quarter to 3.18% in the 2007 second quarter and 3.16% in the 2007 third quarter. The decline was due to a reduction in stockholders' equity resulting primarily from repurchases of the Company's common stock. The inverted yield curve, which existed for some time, started to modestly slope upward in the 2007 second quarter. Meaningful improvement in interest rate spread and net interest margin, however, will continue to be difficult until the yield curve becomes more upward in slope. Interest income was 11% higher in the first nine months of 2007 than in the first nine months of 2006. Net interest income, however, increased only 3% as interest expense rose 21%. The Company's mix of deposits continued to shift from lower rate transaction deposit accounts to higher rate certificates of deposit. Certificates of deposit comprised 64% of total retail deposits at September 30, 2007 compared to 61% at December 31, 2006. The average rate earned on mortgage loans, the Company's largest asset category, declined from 6.44% in the 2006 third quarter to 6.34% in the 2007 third quarter. Over the past year, it was increasingly difficult to incorporate rising funding costs into the pricing of mortgage loan originations. Some financial institutions and other entities active in mortgage lending sought to enhance yields by originating higher risk mortgage loans. The Company refrained from such originations and, at September 30, 2007, its loan portfolio did not include any subprime mortgage loans. The decision to maintain high underwriting standards and aggressive loan pricing by competitors resulted in less loan originations and a decline of $56 million in the average balance of mortgage loans outstanding in the first nine months of 2006 compared to the first nine months of 2007. Mortgage loans, net of unadvanced funds, amounted to $1.02 billion at September 30, 2007. Offsetting a decline in mortgage loan income was interest income derived from indirect automobile ("auto") loans, Eastern loans and commercial loans. The average balance of auto loans outstanding increased $77 million in the 2007 nine month period compared to the 2006 nine month period and $22 million in the 2007 third quarter compared to the 2007 second quarter. Auto loans amounted to $606 million at September 30, 2007. Of greater importance was the increase in the yield on auto loans in those respective periods from 5.01% to 6.09% and from 6.14% to 6.31%. The average balance of Eastern loans outstanding increased from $129 million in the 2007 second quarter to $140 million in the 2007 third quarter. The yields on those loans were 10.70% and 10.57%, respectively. The average balance of commercial loans grew $6.8 million in the 2007 third quarter to $76 million and the average yield on those loans was 7.14%. The provision for loan losses, which is comprised of amounts relating to the auto loan portfolio, the Eastern loan portfolio and the remainder of the Company's loan portfolio, was $1,503,000 in the 2007 third quarter compared to $813,000 in the 2006 third quarter and $3,860,000 in the 2007 nine month period compared to $2,420,000 in the 2006 nine month period. The amounts provided for auto loan losses in the 2007 and 2006 third quarters were $1,389,000 and $850,000, respectively, and $3,012,000 and $2,355,000, respectively, in the 2007 and 2006 nine month periods. The increases resulted from higher loan balances and a rise in charge-offs. Net charge-offs were $1,232,000 in the 2007 third quarter (resulting in an annualized rate of net charge-offs of 0.80% based on the average balance of loans outstanding) and $2,527,000 in the 2007 nine month period (0.57% annualized rate of net charge-offs). Net charge-offs in the 2006 nine month period were $1,381,000 (0.36% annualized rate of net charge-offs). Loans delinquent 30 days or more were $7,437,000, or 1.23% of loans outstanding at September 30, 2007, compared to $7,092,000 (1.31%) at December 31, 2006. The rise in net charge-offs is due primarily to economic pressures affecting the ability of consumers to service their debt and larger per unit losses upon auto repossession due to weaker demand and slowing retail auto business activity. The provisions for loan losses related to the Eastern portfolio in the 2007 and 2006 third quarters were $114,000 and $238,000, respectively, $823,000 in the 2007 nine month period and $415,000 in the six month period ended September 30, 2006. Net charge-offs declined from $391,000 in the 2007 first quarter to $288,000 in the 2007 second quarter and $63,000 in the 2007 third quarter, which was aided by recoveries of $179,000 in that quarter. The resulting annualized rate of net charge-offs for the 2007 nine month period was 0.75% of average loans outstanding. Loans delinquent 30 days or more increased from $1,436,000 (1.13% of total loans) at December 31, 2006 to $2,002,000 (1.45%) at June 30, 2007 and $3,414,000 (2.44%) at September 30, 2007. Loans on non-accrual at those respective dates were $657,000 (0.52% of total loans), $2,254,000 (1.63%) and $2,169,000 (1.55%). The total allowance for loan losses related to Eastern's loans was $2,377,000, or 1.80% of loans outstanding at September 30, 2007 (excluding seasoned loans purchased at the end of the 2007 second quarter). Despite a much lower rate of charge-off experience, the allowance is maintained at 1.80% in recognition of the higher risk exposure associated with Eastern's loans. The higher risk exposure is the reason why the rates charged on the loans are significantly above those on other segments of the Company's loan portfolio. Regarding the remainder of the Company's loan portfolio, which is comprised primarily of mortgage loans and commercial loans, the provisions for loan losses in the 2007 third quarter and nine month period were none and $25,000, respectively. In the 2006 third quarter and nine month period, credits to the provision for loan losses of $275,000 and $350,000, respectively, were taken to income as a result of reductions in loans outstanding caused by payoffs. No mortgage loans or commercial loans were charged off in 2007 or 2006. Loans delinquent 30 days or more at September 30, 2007 were insignificant at $956,000. Excluding securities gains, the increases in non-interest income in the 2007 third quarter and nine month periods compared to the same periods for 2006 were due primarily to higher deposit service and loan fees, including fees from prepayment of loans. Non-interest expenses were $763,000, or 7.9%, higher in the 2007 third quarter than in the 2006 third quarter due primarily to higher expenses related to auto loan growth, higher marketing expenses for promotion of deposit programs, higher legal fees and higher costs for loan collections and auto repossessions. The $3,116,000, or 11.4%, increase in non-interest expenses for the 2007 nine month period compared to the 2006 nine month period was due primarily to the inclusion of Eastern for only six months in 2006, higher professional fees for legal and audit services, and higher costs for loan collections and auto repossessions. During the 2007 third quarter, the Company repurchased 457,300 shares of its common stock at a total cost of $4,831,000, or $10.56 per share including transaction costs. In the 2007 nine month period, the Company repurchased 2, 517,300 shares of its common stock at a total cost of $29,671,000, or $11.79 per share including transaction costs. The foregone interest income resulting from the stock repurchases was approximately $357,000 in the 2007 third quarter and $527,000 in the 2007 nine month period. As of September 30, 2007, the Company remained authorized by the Board of Directors to repurchase an additional 3,755,232 shares. 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. 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) September December September 30, 31, 30, 2007 2006 2006 ----------- ----------- ----------- ASSETS Cash and due from banks $ 15,665 $ 18,237 $ 16,483 Short-term investments 130,254 134,417 97,454 Securities available for sale 265,424 335,246 367,373 Securities held to maturity (market value of $203, $242 and $754, respectively) 195 233 745 Restricted equity securities 26,563 28,567 28,567 Loans 1,892,087 1,792,062 1,800,408 Allowance for loan losses (23,461) (23,024) (25,066) ---------- ---------- ---------- Net loans 1,868,626 1,769,038 1,775,342 ---------- ---------- ---------- Accrued interest receivable 9,897 10,310 10,697 Bank premises and equipment, net 9,267 9,335 9,681 Deferred tax asset 10,936 11,036 11,581 Prepaid income taxes 1,089 1,801 1,690 Goodwill 42,545 42,545 42,489 Identified intangible assets, net of accumulated amortization of $6,115, $4,604 and $4,035, respectively 6,837 8,348 8,917 Other assets 4,608 3,927 4,453 ---------- ---------- ---------- Total assets $2,391,906 $2,373,040 $2,375,472 ========== ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY - ---------------------------------- Retail deposits $1,244,642 $1,210,206 $1,187,700 Brokered deposits 67,991 78,060 78,096 Borrowed funds 512,019 463,806 489,537 Subordinated debt 7,024 12,092 12,123 Mortgagors' escrow accounts 5,429 5,114 5,580 Accrued expenses and other liabilities 21,997 19,494 20,223 ---------- ---------- ---------- Total liabilities 1,859,102 1,788,772 1,793,259 ---------- ---------- ---------- Minority interest in subsidiary 1,321 1,375 1,331 ---------- ---------- ---------- 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; 63,256,281 shares, 62,989,384 shares and 62,989,384 shares issued, respectively 633 630 630 Additional paid-in capital 511,758 508,248 507,056 Retained earnings, partially restricted 70,109 96,229 95,938 Accumulated other comprehensive income (loss) 7 (640) (1,091) Treasury stock, at cost - 3,922,911 shares, 1,405,611 shares and 1,405,611 shares, respectively (47,815) (18,144) (18,144) Unallocated common stock held by ESOP - 588,500 shares, 629,081 shares and 643,104 shares, respectively (3,209) (3,430) (3,507) ---------- ---------- ---------- Total stockholders' equity 531,483 582,893 580,882 ---------- ---------- ---------- Total liabilities and stockholders' equity $2,391,906 $2,373,040 $2,375,472 ========== ========== ========== BROOKLINE BANCORP, INC. AND SUBSIDIARIES Consolidated Statements of Income (In thousands except share data) Three months ended Nine months ended September 30, September 30, --------------------- --------------------- 2007 2006 2007 2006 ---------- ---------- ---------- ---------- Interest income: Loans $31,258 $29,154 $ 91,181 $81,356 Debt securities 3,342 3,774 10,682 11,033 Marketable equity securities 15 30 50 93 Restricted equity securities 469 763 1,353 1,074 Short-term investments 1,759 1,436 5,242 3,874 ---------- ---------- ---------- ---------- Total interest income 36,843 35,157 108,508 97,430 ---------- ---------- ---------- ---------- Interest expense: Retail deposits 11,476 9,523 33,332 25,354 Brokered deposits 1,019 968 3,092 1,605 Borrowed funds 6,211 6,256 17,371 17,313 Subordinated debt 140 236 531 667 ---------- ------ ---------- ---------- Total interest expense 18,846 16,983 54,326 44,939 ---------- ------ ---------- ---------- Net interest income 17,997 18,174 54,182 52,491 Provision for loan losses 1,503 813 3,860 2,420 ---------- ------ ---------- ---------- Net interest income after provision for loan losses 16,494 17,361 50,322 50,071 ---------- ------ ---------- ---------- Non-interest income: Fees and charges 926 829 3,217 2,362 Gains on securities, net - - - 558 Other income 1 8 40 28 ---------- ---------- ---------- ---------- Total non-interest income 927 837 3,257 2,948 ---------- ---------- ---------- ---------- Non-interest expense: Compensation and employee benefits 5,227 5,027 15,712 14,462 Occupancy 854 837 2,545 2,396 Equipment and data processing 1,700 1,538 4,872 4,478 Professional services 462 365 1,477 1,007 Advertising and marketing 406 294 813 749 Amortization of identified intangibles 503 569 1,510 1,665 Other 1,243 1,002 3,521 2,577 ---------- ---------- ---------- ---------- Total non-interest expense 10,395 9,632 30,450 27,334 ---------- ---------- ---------- ---------- Income before income taxes and minority interest 7,026 8,566 23,129 25,685 Provision for income taxes 2,711 3,383 8,932 10,109 ---------- ---------- ---------- ---------- Net income before minority interest 4,315 5,183 14,197 15,576 Minority interest in earnings of subsidiary 66 74 154 141 ---------- ---------- ---------- ---------- Net income $ 4,249 $ 5,109 $ 14,043 $15,435 ========== ========== ========== ========== Earnings per common share: Basic $ 0.07 $ 0.08 $ 0.24 $ 0.25 Diluted 0.07 0.08 0.23 0.25 Weighted average common shares outstanding during the period: Basic 58,541,627 60,387,098 59,597,169 60,353,648 Diluted 59,020,681 61,060,561 60,171,865 61,064,942 BROOKLINE BANCORP, INC. AND SUBSIDIARIES Average Yields / Costs Three months ended September 30, ----------------------------------------------------- 2007 2006 ----------------------------------------------------- Average Average Average Interest yield/ Average Interest yield/ balance (1) cost balance (1) cost ---------- -------- ------------------------- ------- (Dollars in thousands) Assets - ---------------- Interest-earning assets: Short-term investments $ 134,882 1,759 5.17% $ 108,992 $ 1,436 5.23% Debt securities (2) 269,968 3,428 5.08 349,759 3,865 4.42 Equity securities (2) (4) 27,704 490 7.02 31,215 805 10.23 Mortgage loans (3) 1,029,843 16,316 6.34 1,075,151 17,305 6.44 Commercial loans - Eastern Funding (3) 140,105 3,703 10.57 122,349 3,338 10.82 Other commercial loans (3) 76,076 1,358 7.14 67,866 1,190 7.01 Indirect automobile loans (3) 616,968 9,815 6.31 541,343 7,263 5.32 Other consumer loans (3) 3,450 66 7.65 3,058 58 7.59 --------- -------- --------- ------- Total interest- earning assets 2,298,996 36,935 6.41% 2,299,733 35,260 6.11% -------- ----- ------- ----- Allowance for loan losses (23,310) (25,000) Non-interest earning assets 99,626 104,092 ---------- ---------- Total assets $2,375,312 $2,378,825 ========== ========== Liabilities and Stockholders' Equity - ---------------- Interest-bearing liabilities: Deposits: NOW accounts $ 81,869 63 0.31% $ 86,869 54 0.25% Savings accounts 90,684 360 1.57 111,492 478 1.70 Money market savings accounts 224,967 1,628 2.87 221,066 1,458 2.62 Retail certificates of deposit 767,063 9,425 4.87 694,076 7,533 4.31 ---------- -------- ---------- ------- Total retail deposits 1,164,583 11,476 3.91 1,113,503 9,523 3.39 Brokered certificates of deposit 74,996 1,019 5.39 71,574 968 5.37 ---------- -------- ---------- ------- Total deposits 1,239,579 12,495 4.00 1,185,077 10,491 3.51 Borrowed funds 502,870 6,211 4.83 512,691 6,256 4.77 Subordinated debt 7,034 140 7.79 12,144 236 7.60 ---------- -------- ---------- ------- Total interest bearing liabilities 1,749,483 18,846 4.27% 1,709,912 16,983 3.94% -------- ----- ------- ----- Non-interest- bearing demand checking accounts 63,405 59,864 Other liabilities 25,470 24,088 ---------- ---------- Total liabilities 1,838,358 1,793,864 Stockholders' equity 536,954 584,961 ---------- ---------- Total liabilities and stockholders' equity $2,375,312 $2,378,825 ========== ========== Net interest income (tax equivalent basis)/interest rate spread (5) 18,089 2.14% 18,277 2.17% ===== ===== Less adjustment of tax exempt income 92 103 -------- ------- Net interest income $ 17,997 $18,174 ======== ======= Net interest margin (6) 3.16% 3.11% ===== ===== (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) Loans on non-accrual status are included in average balances. (4) 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 dividend income was recognized by the Company in that period. In the third quarter of 2006, the FHLB declared dividends that were equivalent to two quarterly periods. The amount of dividend income recognized by the Company in the third quarter of 2006 was $761. The yield on average interest-earning assets in the three months ended September 30, 2006 was 0.06% higher than it otherwise would have been if the equivalent of an extra quarterly dividend had not been received during that three month period. (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 Nine months ended ended September 30, September 30, --------------- --------------- 2007 2006 2007 2006 ------- ------- ------- ------- Performance Ratios (annualized): Return on average assets 0.72% 0.86% 0.79% 0.89% Return on average stockholders' equity 3.17% 3.49% 3.36% 3.48% Interest rate spread 2.14% 2.17% 2.13% 2.16% Net interest margin 3.16% 3.15% 3.18% 3.13% Dividends paid per share during period $0.285 $0.285 $0.655 $0.655 At At At September December September 30, 31, 30, 2007 2006 2006 ----------- ---------- --------- (dollars in thousands except per share data) Capital Ratio: Stockholders' equity to total assets 22.22% 24.56% 24.45% Tangible stockholders' equity to total assets 20.58% 22.91% 22.78% Asset Quality: Non-accrual loans $ 3,373 (A) $ 900 $ 1,063 Non-performing assets 4,820 (A) 1,959 2,299 Allowance for loan losses 23,461 (B) 23,024 (B) 25,066 Allowance for loan losses as a percent of total loans 1.24% (B) 1.28% (B) 1.39% Non-performing assets as a percent of total assets 0.20% 0.08% 0.10% (A) Non-accrual loans and non-performing assets at June 30, 2007 amounted to $2,986 and $4,224, respectively. (B) Net of transfers to allowance for unfunded loan commitments of $1,445 at September 30, 2007 and $1,286 at December 31, 2006, which are included in other liabilities at those dates. If the transfers had not been made, the allowance for loan losses as a percent of total loans would have been 1.32% at September 30, 2007 and 1.36% at December 31, 2006. Per Share Data: Book value per share $ 8.93 $ 9.47 $ 9.43 Tangible book value per share 8.10 8.64 8.60 Market value per share 11.59 13.17 13.75 CONTACT: Brookline Bancorp, Inc. Paul Bechet, 617-278-6405 Chief Financial Officer -----END PRIVACY-ENHANCED MESSAGE-----