Brookline Bancorp, Inc. (NASDAQ: BRKL) announced net income of $12.7 million, or $0.18 per basic and diluted share, for the second quarter of 2016, compared to $11.9 million, or $0.17 per basic and diluted share, for the second quarter of 2015.

Paul Perrault, President and Chief Executive Officer of the Company, stated: "We have delivered another solid quarter for our stockholders with strong loan and deposit growth. I am proud of our employees who work together to live the Brookline Bancorp culture of providing excellent customer service and contributing to the growth of our Company."

BALANCE SHEET

Total assets at June 30, 2016 increased $115.5 million to $6.3 billion from $6.2 billion at March 31, 2016, and increased $254.2 million from $6.0 billion at December 31, 2015. The increase in total assets of 7.5 percent on an annualized basis during the second quarter of 2016 was primarily driven by increases in loans and leases. At June 30, 2016, total loans and leases were $5.3 billion, representing an increase of $128.6 million from March 31, 2016, and an increase of $263.5 million from December 31, 2015. During the second quarter of 2016, total loans and leases grew 10.0 percent on an annualized basis. Strong loan growth continued in the commercial real estate and commercial loan and lease portfolios, which increased $116.2 million during the second quarter of 2016, or 11.2 percent on an annualized basis.

Investment securities at June 30, 2016 decreased $17.0 million to $602.6 million, representing 9.6 percent of total assets, as compared to $619.6 million, or 10.0 percent of total assets, at March 31, 2016, and decreased approximately $4.4 million from $607.0 million, or 10.0 percent of total assets, at December 31, 2015.

Total deposits at June 30, 2016 increased $91.7 million to $4.5 billion from $4.4 billion at March 31, 2016 and increased $179.1 million from $4.3 billion at December 31, 2015. Core deposits, which consist of demand checking, NOW, savings, and money market accounts, increased $48.8 million from March 31, 2016 and increased $116.0 million from December 31, 2015. The average cost of interest bearing deposits increased slightly to 0.55 percent for the three months ended June 30, 2016 from 0.54 percent for the three months ended March 31, 2016.

Total borrowings at June 30, 2016 remained consistent at $1.0 billion with March 31, 2016 and increased $45.4 million from $983.0 million at December 31, 2015.

The ratio of stockholders' equity to total assets was 10.95 percent at June 30, 2016, as compared to 11.01 percent at March 31, 2016, and 11.05 percent at December 31, 2015, respectively. The ratio of tangible stockholders' equity to tangible assets was 8.82 percent at June 30, 2016, as compared to 8.83 percent at March 31, 2016, and 8.81 percent at December 31, 2015.

NET INTEREST INCOME

Net interest income increased $1.1 million to $50.3 million during the second quarter of 2016 from the first quarter driven by the growth in interest earning assets as the net interest margin decreased 1 basis point to 3.44 percent.

PROVISION FOR LOAN AND LEASE LOSSES

The Company recorded a provision for loan and lease losses of $2.7 million for the quarter ended June 30, 2016, compared to $2.3 million for the quarter ended March 31, 2016.

Net charge-offs increased $3.6 million to $4.0 million for the second quarter of 2016 from $0.4 million for the first quarter of 2016 due to a $3.4 million charge off of a commercial relationship which had a specific reserve of$3.3 million recorded in a prior period. As a result, the ratio of net charge-offs to average loans on an annualized basis increased to 31 basis points for the second quarter of 2016 from 3 basis points for the first quarter of 2016.

The allowance for loan and lease losses represented 1.09 percent of total loans and leases at June 30, 2016, compared to 1.14 percent at March 31, 2016 and December 31, 2015. The allowance for loan and lease losses related to originated loans and leases as a percentage of originated loans and leases was 1.13 percent at June 30, 2016, compared to 1.20 percent at March 31, 2016 and December 31, 2015.

NON-INTEREST INCOME

Non-interest income for the quarter ended June 30, 2016 decreased $1.1 million to $5.4 million from $6.5 million for the first quarter. The decrease was primarily driven by a decrease of $0.6 million in gain on sales of loans and leases held-for-sale and a decrease of $0.4 million due to lower loan level derivative income.

NON-INTEREST EXPENSE

Non-interest expense for the quarter ended June 30, 2016 increased $0.2 million to $32.3 million from $32.1 million for the quarter ended March 31, 2016. The Company's efficiency ratio was 57.97 percent at June 30, 2016, compared with 57.57 percent at March 31, 2016.

PROVISION FOR INCOME TAXES

The effective tax rate was 35.8 percent for the three months and six months ended June 30, 2016.

RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

The return on average assets decreased during the second quarter of 2016 to 0.81 percent at June 30, 2016 from 0.84 percent at March 31, 2016. The return on average tangible assets decreased to 0.83 percent for the second quarter of 2016 from 0.86 percent for the first quarter of 2016.

The return on average stockholders' equity decreased during the second quarter of 2016 to 7.38 percent from 7.57 percent for the first quarter of 2016. The return on average tangible stockholders' equity decreased to 9.40 percent for the second quarter of 2016 from 9.69 percent for the first quarter of 2016.

ASSET QUALITY

The ratio of nonperforming loans and leases to total loans and leases was 0.61 percent at June 30, 2016 as compared to 0.62 percent at March 31, 2016. Nonperforming loans and leases at June 30, 2016 remained consistent at $31.9 million with March 31, 2016. Nonperforming assets at June 30, 2016 increased $0.2 millionto $32.7 million, or 0.52 percent of total assets, from $32.5 million, or 0.53 percent of total assets, at March 31, 2016.

DIVIDEND DECLARED

The Company's Board of Directors approved a dividend of $0.09 per share for the quarter ended June 30, 2016. The dividend will be paid on August 19, 2016 to stockholders of record on August 5, 2016.

ABOUT BROOKLINE BANCORP, INC.

Brookline Bancorp, Inc., a bank holding company with $6.3 billion in assets and branch locations inMassachusetts 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.