Brookline Bancorp (BRKL) AI Stock Analysis

• Market Cap: $973.91M
• Dividend Yield: 4.94%
• Average Volume (3M): 524.50K
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.95
• Revenue Growth: 4.33%
• EPS Growth: -11.14%
• Country: US
• Employees: 951
• Sector: Financial
• Sector Strength: 81
• Industry: Banks - Regional
• EPS (TTM): 0.21
• Shares Outstanding: 89,104,610
• 10 Day Avg. Volume: 671,873
• 30 Day Avg. Volume: 524,504
• PEG Ratio: 1.88
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.84
• Enterprise Value/Market Cap: 1.78
• Enterprise Value/Revenue: 0.67
• Enterprise Value/Gross Profit: 5.13
• Enterprise Value/Ebitda: 3.92
• 1Y Price Target: $13.25
• Price Target Upside: 18.83% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 71 Outperform
• Price Target: $11.50 ▲(3.14%Upside)

Brookline Bancorp's strong financial performance and attractive valuation are key strengths, supported by stable profitability and a high dividend yield. The company's technical analysis and earnings call reveal mixed signals, with moderate market momentum and some operational challenges. Legal issues related to the merger present potential risks that could impact future growth and stability.

Positive Factors

Earnings

The merger of BHLB and BRKL is expected to positively impact long-term earnings.

Market Presence

The merger will create a strong regional bank presence in New England/NY markets with $24B in assets.

Profitability

The BRKL-BHLB combination significantly enhances profitability and makes for a more attractive combined franchise.

Negative Factors

Execution Risks

The rating for BRKL is lowered to Market Perform due to anticipated execution risks similar to other recent mergers.

Stock Performance

The shares are likely to remain range-bound for the next few quarters due to the merger announcement.

Brookline Bancorp Business Overview & Revenue Model

Company Description

Brookline Bancorp, Inc. operates as a bank holding company for the Brookline Bank that provide commercial, business, and retail banking services to corporate, municipal, and retail customers in the United States. Its deposit products include demand checking, NOW, money market, and savings accounts. The company's loan portfolio primarily comprises first mortgage loans secured by commercial, multi-family, and residential real estate properties; loans to business entities comprising commercial lines of credit; loans to condominium associations; loans and leases used to finance equipment for small businesses; financing for construction and development projects; and home equity and other consumer loans. It also provides term loans, letters of credit, foreign exchange, cash management, investment advisory, and online and mobile banking services, as well as invests in debt and equity securities. As of December 31, 2021, the company operated 50 full-service banking offices in greater Boston, Massachusetts, and greater Providence, Rhode Island. Brookline Bancorp, Inc. was founded in 1871 and is headquartered in Boston, Massachusetts.

How the Company Makes Money

Brookline Bancorp generates revenue primarily through the interest income earned on loans and investment securities. The company offers a variety of loan products, including commercial real estate loans, residential mortgage loans, and commercial and industrial loans. Additionally, the bank earns non-interest income through service charges, fees for various banking services, and commissions from investment advisory and wealth management services. By maintaining a diversified portfolio of loans and securities, and leveraging its localized banking services, Brookline Bancorp effectively manages its revenue streams. The company's financial performance is also supported by its strategic partnerships and community banking model, which enhance its customer base and market presence.

Brookline Bancorp Financial Statement Overview

Summary

Brookline Bancorp exhibits strong profitability and cash flow generation, with stable margins and efficient cash conversion. However, slowing revenue growth and potential liquidity constraints pose challenges. The balance sheet is sound with manageable leverage, despite a slight contraction in assets.

Income Statement

Brookline Bancorp exhibits moderate profitability with a stable gross profit margin of around 52% and a consistent net profit margin near 11%. The revenue growth rate is slowing, with a slight decline from 2024 to TTM. The EBIT and EBITDA margins are stable, reflecting efficient operations. However, the declining revenue and mixed profit trends indicate potential challenges in sustaining growth.

Balance Sheet

The company's balance sheet is relatively strong, with a debt-to-equity ratio of around 0.97 in TTM, indicating manageable leverage. The equity ratio is approximately 10.8%, showing a stable capital structure. Return on equity is healthy, reflecting effective use of equity. However, total assets have decreased slightly, suggesting potential constraints on growth.

Cash Flow

Cash flow analysis reveals a robust free cash flow growth rate of 1.1% from 2024 to TTM. The operating cash flow to net income ratio is strong, indicating efficient cash conversion. The free cash flow to net income also demonstrates solid cash generation capabilities. While investing cash flow has improved, financing activities have seen significant fluctuations, suggesting variable external financing needs.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	652.08M	654.50M	608.88M	373.43M	338.52M	351.46M
Gross Profit	338.57M	333.56M	333.44M	319.49M	317.20M	222.92M
EBITDA	111.76M	106.33M	109.91M	146.47M	161.26M	68.83M
Net Income	73.15M	68.72M	75.00M	109.74M	115.44M	47.63M
Balance Sheet
Total Assets	11.52B	11.91B	11.38B	9.19B	8.60B	8.94B
Cash, Cash Equivalents and Short-Term Investments	1.24B	1.44B	1.05B	1.04B	1.05B	1.18B
Total Debt	1.20B	1.56B	1.41B	1.45B	377.83M	844.39M
Total Liabilities	10.28B	10.68B	10.18B	8.19B	7.61B	8.00B
Stockholders Equity	1.24B	1.22B	1.20B	992.13M	995.34M	941.78M
Cash Flow
Free Cash Flow	101.14M	99.97M	104.24M	113.37M	128.42M	109.58M
Operating Cash Flow	104.13M	104.95M	116.60M	120.76M	133.21M	112.49M
Investing Cash Flow	15.50M	-139.60M	-665.26M	-557.69M	131.11M	-695.53M
Financing Cash Flow	-63.97M	445.29M	298.74M	492.15M	-371.51M	940.17M

Brookline Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.15
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BRKL, the sentiment is Positive. The current price of 11.15 is above the 20-day moving average (MA) of 10.37, above the 50-day MA of 10.44, and above the 200-day MA of 10.92, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.81 is Neutral, neither overbought nor oversold. The STOCH value of 89.24 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BRKL.

Brookline Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BFC	76 Outperform	$1.22B	18.07	10.82%	1.46%	18.79%	-11.25%
CNOB	73 Outperform	$1.24B	13.47	6.21%	2.91%	2.27%	-2.50%
OCFC	71 Outperform	$1.06B	11.92	5.51%	4.39%	1.38%	-10.46%
BRKL	71 Outperform	$973.91M	13.36	6.01%	4.94%	4.33%	-11.14%
TCBK	70 Outperform	$1.37B	12.22	9.38%	3.11%	3.01%	4.55%
WRLD	69 Neutral	$919.44M	10.59	20.78%	―	-1.46%	25.24%
Sector *	58 Neutral	$12.53B	5.19	-2.71%	5.24%	5.88%	-56.03%

Brookline Bancorp Corporate Events

Brookline Bancorp Approves Merger with Berkshire Hills

On May 21, 2025, Brookline Bancorp, Inc. held a virtual special meeting of its stockholders to vote on several proposals related to a merger agreement with Berkshire Hills Bancorp, Inc. The proposal to adopt the merger agreement, which involves Brookline merging with Commerce Acquisition Sub, Inc. and subsequently with Berkshire, was approved. However, a non-binding advisory proposal regarding executive compensation in connection with the mergers was not approved. The approval of this compensation proposal was not necessary for the completion of the mergers.

The most recent analyst rating on (BRKL) stock is a Buy with a $10.00 price target. To see the full list of analyst forecasts on Brookline Bancorp stock, see the BRKL Stock Forecast page.

Brookline Bancorp Faces Legal Challenges in Merger

On December 16, 2024, Brookline Bancorp, Inc. and Berkshire Hills Bancorp, Inc. entered into a merger agreement, with Brookline merging into Berkshire. The merger, which aims to create a strong entity in the northeast markets, has faced legal challenges. Shareholders have filed demand letters and lawsuits alleging omissions in the joint proxy statement/prospectus, seeking to block the merger. Despite these challenges, both companies have issued supplemental disclosures to address the claims and continue to deny any wrongdoing.

Brookline Bancorp Reports Increased Q1 2025 Net Income

Brookline Bancorp, Inc. reported a net income of $19.1 million for the first quarter of 2025, showing an increase from the previous quarter and the same quarter in 2024. Despite economic challenges, the company intentionally reduced its commercial real estate exposure while growing deposits and focusing on commercial and industrial markets. Total assets decreased, primarily due to reductions in cash, cash equivalents, and loans, while deposits saw an increase driven by customer deposits. The company also declared a quarterly dividend of $0.135 per share.