Net Income of $18.6 million, EPS of $0.24

Operating Earnings of $20.0 million, EPS of $0.26

Quarterly Dividend Increase of 11.1%

BOSTON, April 25, 2018 (GLOBE NEWSWIRE) -- Brookline Bancorp, Inc. (NASDAQ:BRKL) (the “Company”) today announced net income of $18.6 million, or $0.24 per basic and diluted share, for the first quarter of 2018, compared to $6.8 million, or $0.09 per basic and diluted share, for the fourth quarter of 2017, and $13.4 million, or $0.19 per basic and diluted share, for the first quarter of 2017. Excluding merger charges and securities gains for the first quarter of 2018, the Company had operating earnings of $20.0 million, or $0.26 per basic and diluted share.

“Brookline Bancorp continued to exhibit strong performance in the quarter,” said Paul Perrault, President and Chief Executive Officer of the Company. “The acquisition of First Commons Bank was completed on schedule, thanks to the hard work of both teams. Our positive momentum continues as we go into the second quarter.”

First Commons Bank Acquisition

On March 1, 2018, the Company completed the acquisition of First Commons Bank, N.A., which was merged into Brookline Bank. The acquisition included two locations which will be consolidated into existing Brookline Bank locations in Newton Centre and Wellesley, Massachusetts on June 1, 2018. The transaction included the acquisition of $262.1 million in loans and the assumption of $273.7 million in deposits, each at fair value. Total consideration of $56.0 million consisted of 3,481,477 shares of Brookline Bancorp, Inc. common stock issued to First Commons Bank shareholders, as well as $851 thousand in cash, inclusive of cash in lieu for fractional shares and warrants.

BALANCE SHEET

Total assets at March 31, 2018 increased $467.9 million to $7.25 billion from $6.78 billion at December 31, 2017, and increased $750.4 million from $6.50 billion at March 31, 2017. At March 31, 2018, total loans and leases were $6.11 billion, representing an increase of $383.8 million from December 31, 2017, and an increase of $652.7 million from March 31, 2017. During the first quarter of 2018, total loans and leases increased 26.8 percent on an annualized basis. Excluding the First Commons Bank acquired loans at fair value; loans increased $121.7 million during the quarter or 8.5 percent on an annualized basis.

Investment securities at March 31, 2018 increased $25.9 million to $675.7 million, comprising 9.3 percent of total assets, as compared to $649.9 million, or 9.6 percent of total assets, at December 31, 2017, and increased approximately $46.6 million from $629.1 million, or 9.7 percent of total assets, at March 31, 2017.

Total deposits at March 31, 2018 increased $320.2 million to $5.19 billion from $4.87 billion at December 31, 2017 and increased $539.6 million from $4.65 billion at March 31, 2017. Excluding the First Commons Bank acquired deposits at fair value; deposits increased $46.5 million during the quarter or 3.8 percent on an annualized basis.

Total borrowings at March 31, 2018 increased $78.6 million to $1.10 billion from $1.02 billion at December 31, 2017 and increased $42.6 million from $1.06 billion at March 31, 2017.

The ratio of stockholders’ equity to total assets was 11.94 percent at March 31, 2018, as compared to 11.86 percent at December 31, 2017, and 10.83 percent at March 31, 2017, respectively. The ratio of tangible stockholders’ equity to tangible assets was 9.85 percent at March 31, 2018, as compared to 9.94 percent at December 31, 2017, and 8.79 percent at March 31, 2017. Tangible book value per share increased $0.08 from $8.61 at December 31, 2017 to $8.69 at March 31, 2018.

NET INTEREST INCOME

Net interest income increased $1.8 million to $59.5 million during the first quarter of 2018 from the quarter ended December 31, 2017. The net interest margin increased 7 basis points to 3.66 percent for the three months ended March 31, 2018.

NON-INTEREST INCOME

Non-interest income for the quarter ended March 31, 2018 increased $0.4 million to $6.2 million from $5.8 million for the quarter ended December 31, 2017. The increase was primarily driven by $1.2 million in gain on sales of securities, offset by a decrease of $0.6 million in gain on sales of loans and leases and a decrease of $0.2 million in other non-interest income.

PROVISION FOR CREDIT LOSSES

The Company recorded a provision for credit losses of $0.6 million for the quarter ended March 31, 2018, compared to $1.8 million for the quarter ended December 31, 2017. The decrease in the provision for the quarter was primarily driven by charge-offs on commercial relationships, primarily taxi medallion loans, in the prior quarter.

Net charge-offs for the first quarter of 2018 were $0.5 million compared to $8.5 million in the fourth quarter of 2017. The ratio of net charge-offs to average loans and leases on an annualized basis decreased to 3 basis points for the first quarter of 2018 from 60 basis points for the fourth quarter of 2017.

The allowance for loan and lease losses represented 0.96 percent of total loans and leases at March 31, 2018, compared to 1.02 percent at December 31, 2017, and 1.21 percent at March 31, 2017. The allowance for loan and lease losses related to originated loans and leases represented 1.03 percent of originated loans and leases at March 31, 2018, compared to 1.05 percent at December 31, 2017, and 1.25 percent at March 31, 2017. 

NON-INTEREST EXPENSE

Non-interest expense for the quarter ended March 31, 2018 increased $4.8 million to $39.9 million from $35.2 million for the quarter ended December 31, 2017. The increase was primarily driven by an increase of $1.7 million in compensation and employee benefits, an increase of $0.4 million in occupancy, and an increase of $2.7 million in merger and acquisition expense.

PROVISION FOR INCOME TAXES

The effective tax rate was 22.5 percent and 70.6 percent for the three months ended March 31, 2018 and December 31, 2017, respectively. The effective tax rate for both periods is reflective of the impact of the Tax Cuts and Jobs Act.

RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

The annualized return on average assets increased to 1.08 percent during the first quarter of 2018 from 0.41 percent for the fourth quarter of 2017. The annualized return on average tangible assets increased to 1.10 percent for the first quarter of 2018 from 0.41 percent for the fourth quarter of 2017.

The annualized return on average stockholders' equity increased to 8.98 percent during the first quarter of 2018 from 3.37 percent for the fourth quarter of 2017. The annualized return on average tangible stockholders’ equity increased to 11.01 percent for the first quarter of 2018 from 4.09 percent for the fourth quarter of 2017.

ASSET QUALITY

The ratio of nonperforming loans and leases to total loans and leases was 0.43 percent at March 31, 2018 as compared to 0.48 percent at December 31, 2017. Nonperforming loans and leases decreased $1.0 million to $26.3 million at March 31, 2018 from $27.3 million at December 31, 2017. The ratio of nonperforming assets to total assets was 0.42 percent at March 31, 2018 as compared to 0.47 percent at December 31, 2017. Nonperforming assets decreased $1.4 million to $30.2 million at March 31, 2018 from $31.7 million at December 31, 2017.

DIVIDEND DECLARED

The Company’s Board of Directors approved a dividend of $0.10 per share for the quarter ended March 31, 2018, an increase of 11.1 percent. The dividend will be paid on May 25, 2018 to stockholders of record on May 11, 2018.

CONFERENCE CALL

The Company will conduct a conference call/webcast at 1:30 PM Eastern Daylight Time on Thursday, April 26, 2018 to discuss the results for the quarter, business highlights and outlook. The call can be accessed by dialing 877-504-4120 (United States) or 412-902-6650 (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 the playback is 10119214. The call will be available live and in a recorded version on the Company’s website under “Investor Relations” at www.brooklinebancorp.com.

ABOUT BROOKLINE BANCORP, INC.

Brookline Bancorp, Inc., a bank holding company with $7.2 billion in assets and branch locations in Massachusetts and Rhode Island, is headquartered in Boston, Massachusetts and operates as the holding company for Brookline Bank, Bank Rhode Island, and First Ipswich Bank (the "banks"). The Company provides commercial and retail banking services, 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.firstipswich.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 ("SEC"). 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.

BASIS OF PRESENTATION

The Company's consolidated financial statements have been prepared in conformity with generally accepted accounting principles (“GAAP”) as set forth by the Financial Accounting Standards Board in its Accounting Standards Codification and through the rules and interpretive releases of the SEC under the authority of federal securities laws. Certain amounts previously reported have been reclassified to conform to the current period's presentation.

NON-GAAP FINANCIAL MEASURES

The Company uses certain non-GAAP financial measures, such as operating earnings, the allowance for loan and lease losses related to originated loans and leases as a percentage of originated loans and leases, tangible book value per common share, tangible stockholders’ equity to tangible assets, return on average tangible assets and return on average tangible stockholders' equity. 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 services sector. A detailed reconciliation table of the Company's GAAP to the non-GAAP measures is attached.

Contact:           Carl M. Carlson

                        Brookline Bancorp, Inc.

                        Chief Financial Officer

                        (617) 425-5331

                        ccarlson@brkl.com

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Selected Financial Highlights (Unaudited)
	At and for the Three Months Ended
	March 31, 2018				December 31, 2017				September 30, 2017				June 30, 2017				March 31, 2017
	(Dollars In Thousands Except per Share Data)
Earnings Data:
Net interest income	$	59,491			$	57,657			$	56,843			$	55,583			$	53,098
Provision for credit losses		641				1,802				2,911				873				13,402
Non-interest income		6,168				5,815				5,973				4,477				15,908
Non-interest expense		39,938				35,152				35,408				34,795				33,756
Income before provision for income taxes		25,080				26,518				24,497				24,392				21,848
Net income attributable to Brookline Bancorp, Inc.		18,633				6,827				15,366				14,880				13,445
Performance Ratios:
Net interest margin (1)		3.66	%			3.59	%			3.57	%			3.59	%			3.53	%
Interest-rate spread (1)		3.38	%			3.42	%			3.41	%			3.39	%			3.29	%
Return on average assets (annualized)		1.08	%			0.41	%			0.92	%			0.91	%			0.83	%
Return on average tangible assets (annualized) (non-GAAP)		1.10	%			0.41	%			0.94	%			0.93	%			0.85	%
Return on average stockholders' equity (annualized)		8.98	%			3.37	%			7.64	%			7.76	%			7.58	%
Return on average tangible stockholders' equity (annualized) (non-GAAP)		11.01	%			4.09	%			9.31	%			9.58	%			9.55	%
Efficiency ratio (2)		60.83	%			55.38	%			56.37	%			57.93	%			48.92	%
Per Common Share Data:
Net income — Basic	$	0.24			$	0.09			$	0.20			$	0.20			$	0.19
Net income — Diluted		0.24				0.09				0.20				0.20				0.19
Cash dividends declared		0.09				0.09				0.09				0.09				0.09
Book value per share (end of period)		10.80				10.49				10.52				10.42				10.00
Tangible book value per share (end of period) (non-GAAP)		8.69				8.61				8.63				8.52				7.93
Stock price (end of period)		16.20				15.70				15.50				14.60				15.65
Balance Sheet:
Total assets	$	7,248,114			$	6,780,249			$	6,686,284			$	6,658,067			$	6,497,721
Total loans and leases		6,114,461				5,730,679				5,639,440				5,537,406				5,461,779
Total deposits		5,191,520				4,871,343				4,805,683				4,709,419				4,651,903
Brookline Bancorp, Inc. stockholders’ equity		865,777				803,830				804,762				795,618				703,873
Asset Quality:
Nonperforming assets	$	30,242			$	31,691			$	44,371			$	47,140			$	47,349
Nonperforming assets as a percentage of total assets		0.42	%			0.47	%			0.66	%			0.71	%			0.73	%
Allowance for loan and lease losses	$	58,714			$	58,592			$	65,413			$	64,521			$	66,133
Allowance for loan and lease losses as a percentage of total loans and leases		0.96	%			1.02	%			1.16	%			1.17	%			1.21	%
Net loan and lease charge-offs	$	505			$	8,507			$	1,954			$	2,402			$	995
Net loan and lease charge-offs as a percentage of average loans and leases (annualized)		0.03	%			0.60	%			0.14	%			0.17	%			0.07	%
Capital Ratios:
Stockholders’ equity to total assets		11.94	%			11.86	%			12.04	%			11.95	%			10.83	%
Tangible stockholders’ equity to tangible assets (non-GAAP)		9.85	%			9.94	%			10.09	%			9.99	%			8.79	%
(1) Calculated on a fully tax-equivalent basis.
(2) Calculated as non-interest expense as a percentage of net interest income plus non-interest income.

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets (Unaudited)
	March 31, 2018				December 31, 2017				September 30, 2017				June 30, 2017				March 31, 2017
ASSETS	(In Thousands Except Share Data)
Cash and due from banks	$	34,713			$	25,622			$	35,392			$	40,599			$	33,565
Short-term investments		49,743				35,383				27,971				72,996				29,178
Total cash and cash equivalents		84,456				61,005				63,363				113,595				62,743
Investment securities available-for-sale		558,357				540,124				522,910				540,976				528,433
Investment securities held-to-maturity		117,352				109,730				107,738				108,963				100,691
Total investment securities		675,709				649,854				630,648				649,939				629,124
Loans and leases held-for-sale		756				2,628				2,973				593				1,152
Loans and leases:
Commercial real estate loans:
Commercial real estate mortgage		2,284,488				2,174,969				2,119,440				2,062,646				2,066,599
Multi-family mortgage		793,006				760,670				743,912				720,484				733,822
Construction		169,440				140,138				165,657				153,057				150,734
Total commercial real estate loans		3,246,934				3,075,777				3,029,009				2,936,187				2,951,155
Commercial loans and leases:
Commercial		761,540				705,004				689,010				691,070				644,240
Equipment financing		892,341				866,488				842,516				839,932				815,753
Condominium association		52,739				52,619				53,770				58,130				60,396
Total commercial loans and leases		1,706,620				1,624,111				1,585,296				1,589,132				1,520,389
Consumer loans:
Residential mortgage		766,687				660,065				652,415				646,679				631,863
Home equity		364,928				355,954				356,982				351,124				343,386
Other consumer		29,292				14,772				15,738				14,284				14,986
Total consumer loans		1,160,907				1,030,791				1,025,135				1,012,087				990,235
Total loans and leases		6,114,461				5,730,679				5,639,440				5,537,406				5,461,779
Allowance for loan and lease losses		(58,714	)			(58,592	)			(65,413	)			(64,521	)			(66,133	)
Net loans and leases		6,055,747				5,672,087				5,574,027				5,472,885				5,395,646
Restricted equity securities		66,164				59,369				62,135				66,988				68,065
Premises and equipment, net of accumulated depreciation		80,268				80,283				81,159				81,052				76,973
Deferred tax asset		19,198				15,061				28,093				26,982				29,859
Goodwill		160,896				137,890				137,890				137,890				137,890
Identified intangible assets, net of accumulated amortization		7,697				6,044				6,563				7,082				7,601
Other real estate owned and repossessed assets		3,963				4,419				4,398				4,873				2,286
Other assets		93,260				91,609				95,035				96,188				86,382
Total assets	$	7,248,114			$	6,780,249			$	6,686,284			$	6,658,067			$	6,497,721
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest-bearing deposits:
Demand checking accounts	$	987,153			$	942,583			$	905,472			$	920,035			$	898,161
Interest-bearing deposits:
NOW accounts		342,374				350,568				318,284				321,982				321,392
Savings accounts		637,920				646,359				665,558				584,408				575,808
Money market accounts		1,862,351				1,724,363				1,749,040				1,763,443				1,765,895
Certificate of deposit accounts		1,361,722				1,207,470				1,167,329				1,119,551				1,090,647
Total interest-bearing deposits		4,204,367				3,928,760				3,900,211				3,789,384				3,753,742
Total deposits		5,191,520				4,871,343				4,805,683				4,709,419				4,651,903
Borrowed funds:
Advances from the FHLBB		982,533				889,909				872,579				930,028				930,001
Subordinated debentures and notes		83,311				83,271				83,229				83,188				83,147
Other borrowed funds		33,585				47,639				30,087				53,427				43,637
Total borrowed funds		1,099,429				1,020,819				985,895				1,066,643				1,056,785
Mortgagors’ escrow accounts		8,395				7,686				8,151				7,714				8,032
Accrued expenses and other liabilities		74,024				67,818				74,019				71,232				69,752
Total liabilities		6,373,368				5,967,666				5,873,748				5,855,008				5,786,472
Stockholders' equity:
Brookline Bancorp, Inc. stockholders’ equity:
Common stock, $0.01 par value; 200,000,000 shares authorized; 85,177,172 shares issued, 81,695,695 shares issued, 81,695,695 shares issued, 81,695,695 shares issued, and 75,744,445 shares issued, respectively		852				817				817				817				757
Additional paid-in capital		755,843				699,976				700,624				699,923				617,364
Retained earnings, partially restricted		172,934				161,217				160,225				151,759				143,766
Accumulated other comprehensive (loss) income		(11,666	)			(5,950	)			(1,893	)			(2,175	)			(3,261	)
Treasury stock, at cost;
4,401,333 shares, 4,440,665 shares, 4,572,954 shares, 4,717,775 shares, and 4,707,096 shares, respectively		(51,454	)			(51,454	)			(54,188	)			(53,837	)			(53,837	)
Unallocated common stock held by the Employee Stock Ownership Plan;
134,238 shares, 142,332 shares, 150,921 shares, 159,510 shares, and 168,099 shares, respectively		(732	)			(776	)			(823	)			(869	)			(916	)
Total Brookline Bancorp, Inc. stockholders’ equity		865,777				803,830				804,762				795,618				703,873
Noncontrolling interest in subsidiary		8,969				8,753				7,774				7,441				7,376
Total stockholders' equity		874,746				812,583				812,536				803,059				711,249
Total liabilities and stockholders' equity	$	7,248,114			$	6,780,249			$	6,686,284			$	6,658,067			$	6,497,721

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
	Three Months Ended
	March 31, 2018			December 31, 2017			September 30, 2017			June 30, 2017			March 31, 2017
	(In Thousands Except Share Data)
Interest and dividend income:
Loans and leases	$	67,272		$	64,272		$	63,054		$	61,138		$	58,558
Debt securities		3,323			3,214			3,154			3,156			3,000
Marketable and restricted equity securities		924			751			788			797			726
Short-term investments		120			100			180			95			67
Total interest and dividend income		71,639			68,337			67,176			65,186			62,351
Interest expense:
Deposits		7,099			6,681			5,984			5,543			5,080
Borrowed funds		5,049			3,999			4,349			4,060			4,173
Total interest expense		12,148			10,680			10,333			9,603			9,253
Net interest income		59,491			57,657			56,843			55,583			53,098
Provision for credit losses		641			1,802			2,911			873			13,402
Net interest income after provision for credit losses		58,850			55,855			53,932			54,710			39,696
Non-interest income:
Deposit fees		2,463			2,542			2,547			2,552			2,409
Loan fees		290			338			282			229			261
Loan level derivative income, net		866			755			844			186			402
Gain on sales of investment securities, net		1,162			—			—			—			11,393
Gain on sales of loans and leases held-for-sale		299			935			1,049			307			353
Other		1,088			1,245			1,251			1,203			1,090
Total non-interest income		6,168			5,815			5,973			4,477			15,908
Non-interest expense:
Compensation and employee benefits		22,314			20,652			21,067			20,910			19,784
Occupancy		3,959			3,594			3,650			3,657			3,645
Equipment and data processing		4,618			4,417			4,210			4,164			4,063
Professional services		1,144			1,200			973			1,036			1,106
FDIC insurance		635			678			842			951			855
Advertising and marketing		1,057			856			839			857			817
Amortization of identified intangible assets		467			519			519			519			532
Merger and acquisition expense		2,905			206			205			—			—
Other		2,839			3,030			3,103			2,701			2,954
Total non-interest expense		39,938			35,152			35,408			34,795			33,756
Income before provision for income taxes		25,080			26,518			24,497			24,392			21,848
Provision for income taxes - operating		5,652			9,747			8,330			8,759			7,835
Impact of revaluation of DTA		—			8,965			—			—			—
Total provision for income taxes		5,652			18,712			8,330			8,759			7,835
Net income before noncontrolling interest in subsidiary		19,428			7,806			16,167			15,633			14,013
Less net income attributable to noncontrolling interest in subsidiary		795			979			801			753			568
Net income attributable to Brookline Bancorp, Inc.	$	18,633		$	6,827		$	15,366		$	14,880		$	13,445
Earnings per common share:
Basic	$	0.24		$	0.09		$	0.20		$	0.20		$	0.19
Diluted	$	0.24		$	0.09		$	0.20		$	0.20		$	0.19
Weighted average common shares outstanding during the period:
Basic		77,879,593			76,583,712			76,452,539			74,325,013			70,386,766
Diluted		78,167,800			76,868,307			76,961,948			74,810,088			70,844,096
Dividends declared per common share	$	0.09		$	0.09		$	0.09		$	0.09		$	0.09

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Asset Quality Analysis (Unaudited)
	At and for the Three Months Ended
	March 31, 2018				December 31, 2017				September 30, 2017				June 30, 2017				March 31, 2017
	(Dollars in Thousands)
NONPERFORMING ASSETS:
Loans and leases accounted for on a nonaccrual basis:
Commercial real estate mortgage	$	4,080			$	3,313			$	3,051			$	2,766			$	5,671
Multi-family mortgage		588				608				792				1,075				1,095
Construction		860				860				860				—				—
Total commercial real estate loans		5,528				4,781				4,703				3,841				6,766
Commercial		11,150				11,619				22,367				23,886				27,442
Equipment financing		6,661				8,106				9,858				9,702				6,445
Total commercial loans and leases		17,811				19,725				32,225				33,588				33,887
Residential mortgage		1,962				1,979				1,969				3,429				3,001
Home equity		925				744				1,047				1,366				1,333
Other consumer		53				43				29				43				76
Total consumer loans		2,940				2,766				3,045				4,838				4,410
Total nonaccrual loans and leases		26,279				27,272				39,973				42,267				45,063
Other real estate owned		3,235				3,235				3,235				3,384				618
Other repossessed assets		728				1,184				1,163				1,489				1,668
Total nonperforming assets	$	30,242			$	31,691			$	44,371			$	47,140			$	47,349
Loans and leases past due greater than 90 days and still accruing	$	5,240			$	3,020			$	2,523			$	2,706			$	6,515
Troubled debt restructurings on accrual		14,294				16,241				14,024				14,732				13,662
Troubled debt restructurings on nonaccrual		8,610				9,770				15,290				16,146				11,756
Total troubled debt restructurings	$	22,904			$	26,011			$	29,314			$	30,878			$	25,418
Nonperforming loans and leases as a percentage of total loans and leases		0.43	%			0.48	%			0.71	%			0.76	%			0.83	%
Nonperforming assets as a percentage of total assets		0.42	%			0.47	%			0.66	%			0.71	%			0.73	%
PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:
Allowance for loan and lease losses at beginning of period	$	58,592			$	65,413			$	64,521			$	66,133			$	53,666
Charge-offs		(792	)			(8,921	)			(2,143	)			(3,365	)			(1,382	)
Recoveries		287				414				189				963				387
Net charge-offs		(505	)			(8,507	)			(1,954	)			(2,402	)			(995	)
Provision for loan and lease losses		627				1,686				2,846				790				13,462
Allowance for loan and lease losses at end of period	$	58,714			$	58,592			$	65,413			$	64,521			$	66,133
Allowance for loan and lease losses as a percentage of total loans and leases		0.96	%			1.02	%			1.16	%			1.17	%			1.21	%
Allowance for loan and lease losses related to originated loans and leases as a percentage of originated loans and leases (non-GAAP)		1.03	%			1.05	%			1.20	%			1.20	%			1.25	%
NET CHARGE-OFFS:
Commercial real estate loans	$	3			$	200			$	65			$	(131	)		$	(116	)
Commercial loans and leases		532				8,290				1,856				2,546				1,065
Consumer loans		(30	)			17				33				(13	)			46
Total net charge-offs	$	505			$	8,507			$	1,954			$	2,402			$	995
Net loan and lease charge-offs as a percentage of average loans and leases (annualized)		0.03	%			0.60	%			0.14	%			0.17	%			0.07	%

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Average Yields / Costs (Unaudited)
	Three Months Ended
	March 31, 2018										December 31, 2017										March 31, 2017
	Average Balance				Interest (1)			Average Yield/ Cost			Average Balance				Interest (1)			Average Yield/ Cost			Average Balance				Interest (1)			Average Yield/ Cost
	(Dollars in Thousands)
Assets:
Interest-earning assets:
Investments:
Debt securities (2)	$	647,501			$	3,377		2.09	%		$	644,958			$	3,323		2.06	%		$	613,520			$	3,110		2.03	%
Marketable and restricted equity securities (2)		64,127				923		5.76	%			59,720				759		5.08	%			69,508				718		4.13	%
Short-term investments		30,664				120		1.57	%			34,689				100		1.15	%			32,127				67		0.84	%
Total investments		742,292				4,420		2.38	%			739,367				4,182		2.26	%			715,155				3,895		2.18	%
Loans and Leases:
Commercial real estate loans (3)		3,116,690				33,429		4.29	%			3,026,124				31,866		4.12	%			2,930,345				29,467		4.02	%
Commercial loans (3)		785,936				8,424		4.29	%			762,493				8,132		4.18	%			699,687				7,113		4.07	%
Equipment financing (3)		875,304				14,864		6.79	%			846,734				14,292		6.75	%			806,139				13,114		6.51	%
Residential mortgage loans (3)		704,666				6,733		3.82	%			659,226				6,082		3.69	%			634,885				5,609		3.53	%
Other consumer loans (3)		382,194				3,941		4.18	%			373,559				4,141		4.40	%			360,791				3,495		3.93	%
Total loans and leases		5,864,790				67,391		4.60	%			5,668,136				64,513		4.55	%			5,431,847				58,798		4.33	%
Total interest-earning assets		6,607,082				71,811		4.35	%			6,407,503				68,695		4.29	%			6,147,002				62,693		4.08	%
Allowance for loan and lease losses		(58,986	)									(65,434	)									(54,314	)
Non-interest-earning assets		379,213										383,661										368,495
Total assets	$	6,927,309									$	6,725,730									$	6,461,183
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Deposits:
NOW accounts	$	335,990				58		0.07	%		$	331,724				61		0.07	%		$	320,671				55		0.07	%
Savings accounts		649,224				401		0.25	%			671,035				381		0.23	%			614,085				310		0.20	%
Money market accounts		1,772,362				2,558		0.59	%			1,766,045				2,456		0.55	%			1,744,534				2,009		0.47	%
Certificates of deposit		1,247,049				4,082		1.33	%			1,202,656				3,783		1.25	%			1,021,949				2,706		1.07	%
Total interest-bearing deposits		4,004,625				7,099		0.72	%			3,971,460				6,681		0.67	%			3,701,239				5,080		0.56	%
Borrowings
Advances from the FHLBB		956,298				3,748		1.57	%			798,572				2,690		1.32	%			929,822				2,857		1.23	%
Subordinated debentures and notes		83,289				1,282		6.16	%			83,248				1,276		6.13	%			83,124				1,260		6.07	%
Other borrowed funds		36,147				19		0.21	%			34,499				33		0.37	%			60,634				56		0.38	%
Total borrowings		1,075,734				5,049		1.88	%			916,319				3,999		1.71	%			1,073,580				4,173		1.55	%
Total interest-bearing liabilities		5,080,359				12,148		0.97	%			4,887,779				10,680		0.87	%			4,774,819				9,253		0.79	%
Non-interest-bearing liabilities:
Demand checking accounts		931,685										933,690										898,481
Other non-interest-bearing liabilities		77,169										85,018										71,812
Total liabilities		6,089,213										5,906,487										5,745,112
Brookline Bancorp, Inc. stockholders’ equity		829,598										811,219										709,095
Noncontrolling interest in subsidiary		8,498										8,024										6,976
Total liabilities and equity	$	6,927,309									$	6,725,730									$	6,461,183
Net interest income (tax-equivalent basis) /Interest-rate spread (4)						59,663		3.38	%							58,015		3.42	%							53,440		3.29	%
Less adjustment of tax-exempt income						172										358										342
Net interest income					$	59,491									$	57,657									$	53,098
Net interest margin (5)								3.66	%									3.59	%									3.53	%
(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 investment securities. Dividend payments may not be consistent and average yield on equity securities may vary from month to month.
(3) Loans on nonaccrual status are included in the average balances.
(4) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
(5) Net interest margin represents net interest income (tax-equivalent basis) divided by average interest-earning assets on an actual/actual basis.

BROOKLINE BANCORP, INC. AND SUBSIDIARIES
Non-GAAP Financial Information (Unaudited)
													At and for the Three Months Ended March 31,
													2018				2017
Reconciliation Table - Non-GAAP Financial Information													(Dollars in Thousands Except Share Data)
Net income attributable to Brookline Bancorp, Inc.													$	18,633			$	13,445
Less:
Security gains (after-tax of 24.0% for 2018 and 35.9% for 2017) **														883				7,303
Add:
Merger and acquisition-related expenses (after-tax of 24.0% for 2018 and 35.9% for 2017) **														2,208				—
Operating earnings													$	19,958			$	6,142
Operating earnings per common share:
Basic													$	0.26			$	0.09
Diluted														0.26				0.09
Weighted average common shares outstanding during the period:
Basic														77,879,593				70,386,766
Diluted														78,167,800				70,844,096
Return on average assets *														1.08	%			0.83	%
Less:
Security gains (after-tax) *														0.05	%			0.45	%
Add:
Merger and acquisition-related expenses (after-tax) *														0.12	%			—	%
Operating return on average assets *														1.15	%			0.38	%
Return on average tangible assets *														1.10	%			0.85	%
Less:
Security gains (after-tax) *														0.05	%			0.46	%
Add:
Merger and acquisition-related expenses (after-tax) *														0.13	%			—	%
Operating return on average tangible assets *														1.18	%			0.39	%
Return on average stockholders' equity *														8.98	%			7.58	%
Less:
Security gains (after-tax) *														0.43	%			4.12	%
Add:
Merger and acquisition-related expenses (after-tax) *														1.07	%			—	%
Operating return on average stockholders' equity *														9.62	%			3.46	%
Return on average tangible stockholders' equity *														11.01	%			9.55	%
Less:
Security gains (after-tax) *														0.52	%			5.19	%
Add:
Merger and acquisition-related expenses (after-tax) *														1.30	%			—	%
Operating return on average tangible stockholders' equity *														11.79	%			4.36	%
* Ratios at and for the three months ended are annualized.
** Based on current expected effective tax rate of 24% for the remainder of 2018.
	At and for the Three Months Ended
	March 31, 2018				December 31, 2017				September 30, 2017				June 30, 2017				March 31, 2017
	(Dollars in Thousands)
Net income, as reported	$	18,633			$	6,827			$	15,366			$	14,880			$	13,445
Average total assets	$	6,927,309			$	6,725,730			$	6,681,042			$	6,556,665			$	6,461,183
Less: Average goodwill and average identified intangible assets, net		152,377				144,226				144,747				145,269				145,778
Average tangible assets	$	6,774,932			$	6,581,504			$	6,536,295			$	6,411,396			$	6,315,405
Return on average tangible assets (annualized)		1.10	%			0.41	%			0.94	%			0.93	%			0.85	%
Average total stockholders’ equity	$	829,598			$	811,219			$	804,666			$	766,529			$	709,095
Less: Average goodwill and average identified intangible assets, net		152,377				144,226				144,747				145,269				145,778
Average tangible stockholders’ equity	$	677,221			$	666,993			$	659,919			$	621,260			$	563,317
Return on average tangible stockholders’ equity (annualized)		11.01	%			4.09	%			9.31	%			9.58	%			9.55	%
Brookline Bancorp, Inc. stockholders’ equity	$	865,777			$	803,830			$	804,762			$	795,618			$	703,873
Less:
Goodwill		160,896				137,890				137,890				137,890				137,890
Identified intangible assets, net		7,697				6,044				6,563				7,082				7,601
Tangible stockholders' equity	$	697,184			$	659,896			$	660,309			$	650,646			$	558,382
Total assets	$	7,248,114			$	6,780,249			$	6,686,284			$	6,658,067			$	6,497,721
Less:
Goodwill		160,896				137,890				137,890				137,890				137,890
Identified intangible assets, net		7,697				6,044				6,563				7,082				7,601
Tangible assets	$	7,079,521			$	6,636,315			$	6,541,831			$	6,513,095			$	6,352,230
Tangible stockholders’ equity to tangible assets		9.85	%			9.94	%			10.09	%			9.99	%			8.79	%
Tangible stockholders' equity	$	697,184			$	659,896			$	660,309			$	650,646			$	558,382
Number of common shares issued		85,177,172				81,695,695				81,695,695				81,695,695				75,744,445
Less:
Treasury shares		4,401,333				4,440,665				4,572,954				4,717,775				4,707,096
Unallocated ESOP shares		134,238				142,332				150,921				159,510				168,099
Unvested restricted shares		455,283				455,283				471,702				457,966				476,854
Number of common shares outstanding		80,186,318				76,657,415				76,500,118				76,360,444				70,392,396
Tangible book value per common share	$	8.69			$	8.61			$	8.63			$	8.52			$	7.93
Allowance for loan and lease losses	$	58,714			$	58,592			$	65,413			$	64,521			$	66,133
Less:
Allowance for acquired loans and leases losses		910				1,040				1,003				1,188				1,304
Allowance for originated loan and lease losses	$	57,804			$	57,552			$	64,410			$	63,333			$	64,829
Total loans and leases	$	6,114,461			$	5,730,679			$	5,639,440			$	5,537,406			$	5,461,779
Less:
Total acquired loans and leases		482,237				240,057				260,196				271,157				295,055
Total originated loans and leases	$	5,632,224			$	5,490,622			$	5,379,244			$	5,266,249			$	5,166,724
Allowance for loan and lease losses related to originated loans and leases as a percentage of originated loans and leases		1.03	%			1.05	%			1.20	%			1.20	%			1.25	%

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