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Brookline Bancorp (BRKL)
NASDAQ:BRKL
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Brookline Bancorp (BRKL) AI Stock Analysis

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BRKL

Brookline Bancorp

(NASDAQ:BRKL)

Rating:75Outperform
Price Target:
$12.50
â–²(13.64%Upside)
Brookline Bancorp's overall stock score reflects a strong financial base with good profitability and cash flow, supported by attractive valuation metrics. The technical analysis indicates a stable outlook, while earnings call insights highlight both strengths in operational results and challenges in loan contraction and economic uncertainty. The legal challenges in the merger do not significantly impact the score as they are already considered in the earnings analysis.
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 (BRKL) vs. SPDR S&P 500 ETF (SPY)

Brookline Bancorp Business Overview & Revenue Model

Company DescriptionBrookline Bancorp, Inc. (BRKL) is a publicly traded bank holding company headquartered in Boston, Massachusetts. It operates through its subsidiary banks, such as Brookline Bank, Bank Rhode Island, and First Ipswich Bank, offering a range of financial services. The company primarily serves individuals and small to mid-sized businesses across various sectors, providing services such as personal and commercial banking, residential and commercial lending, and investment services.
How the Company Makes MoneyBrookline 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 Earnings Call Summary

Earnings Call Date:Jul 23, 2025
(Q2-2025)
|
% Change Since: 0.00%|
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with several positive developments such as improved earnings, merger progress, and increased customer deposits. However, challenges such as stress in the Boston office portfolio, declines in certain loan categories, and increased provisions for credit losses were also highlighted.
Q2-2025 Updates
Positive Updates
Earnings Improvement
Earnings in the second quarter improved with a net income of approximately $22 million or $0.25 per share.
Merger Progress with Berkshire Hills
Stockholders approved the merger with Berkshire Hills, and no significant issues have been identified. The merger is on track, with a systems combination set for early February.
Customer Deposits Increase
Customer deposits increased by $59 million during the quarter, contributing to an improved funding position.
Net Interest Margin Growth
Net interest margin increased by 10 basis points to 332 basis points due to higher asset yields and lower funding costs.
Noninterest Expense Reduction
Noninterest expense, excluding merger charges, decreased by $1.3 million from Q1, with lower expenses across nearly every category.
Loan Portfolio Strategy
Deliberate contraction of $61 million in the loan portfolio to reduce exposure to commercial real estate and specialty vehicles while growing commercial and consumer loans.
Negative Updates
Boston Office Portfolio Stress
Stress in the Boston office portfolio led to credit downgrades and additional reserves being set aside.
Commercial Real Estate and Equipment Finance Decline
Commercial real estate and equipment finance loans declined by $95 million and $46 million, respectively.
Provision for Credit Losses
The provision for credit losses was $7 million, which is $1 million higher than Q1, with $5.1 million in net charge-offs.
Merger-Related Expenses
Merger expenses for the quarter were $439,000 and were largely non-tax deductible, contributing to a higher effective tax rate.
Company Guidance
During Brookline Bancorp's Second Quarter 2025 Earnings Call, the company reported earnings of approximately $22 million, or $0.25 per share, and a deliberate $61 million contraction in the loan portfolio, primarily due to reductions in commercial real estate and specialty vehicles. Notably, customer deposits increased by $59 million, and the net interest margin improved by 10 basis points to 332 basis points, contributing to a $2.9 million rise in net interest income, totaling $88.7 million for the quarter. Fee income slightly increased to $6 million, resulting in total revenues of $94.7 million, a 3% rise from Q1 2025 and 10% from 2024. Noninterest expenses, excluding merger charges, decreased to $57.7 million, while merger expenses were $439,000. The provision for credit losses rose to $7 million, with total net charge-offs amounting to $5.1 million. The company maintained its quarterly dividend at $0.135 per share and anticipated modest improvements in net margin and loan portfolio growth for the remainder of 2025.

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
68
Positive
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
72
Positive
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
75
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue652.08M654.50M608.88M373.43M338.52M351.46M
Gross Profit338.57M333.56M333.44M319.49M317.20M222.92M
EBITDA111.76M106.33M109.91M146.47M161.26M68.83M
Net Income73.15M68.72M75.00M109.74M115.44M47.63M
Balance Sheet
Total Assets11.52B11.91B11.38B9.19B8.60B8.94B
Cash, Cash Equivalents and Short-Term Investments1.24B1.44B1.05B1.04B1.05B1.18B
Total Debt1.20B1.56B1.41B1.45B377.83M844.39M
Total Liabilities10.28B10.68B10.18B8.19B7.61B8.00B
Stockholders Equity1.24B1.22B1.20B992.13M995.34M941.78M
Cash Flow
Free Cash Flow101.14M99.97M104.24M113.37M128.42M109.58M
Operating Cash Flow104.13M104.95M116.60M120.76M133.21M112.49M
Investing Cash Flow15.50M-139.60M-665.26M-557.69M131.11M-695.53M
Financing Cash Flow-63.97M445.29M298.74M492.15M-371.51M940.17M

Brookline Bancorp Technical Analysis

Technical Analysis Sentiment
Positive
Last Price11.00
Price Trends
50DMA
10.70
Positive
100DMA
10.58
Positive
200DMA
11.03
Negative
Market Momentum
MACD
0.13
Positive
RSI
53.96
Neutral
STOCH
45.50
Neutral
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 is above the 20-day moving average (MA) of 10.97, above the 50-day MA of 10.70, and below the 200-day MA of 11.03, indicating a neutral trend. The MACD of 0.13 indicates Positive momentum. The RSI at 53.96 is Neutral, neither overbought nor oversold. The STOCH value of 45.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BRKL.

Brookline Bancorp Risk Analysis

Brookline Bancorp disclosed 50 risk factors in its most recent earnings report. Brookline Bancorp reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Brookline Bancorp Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$1.03B11.2311.99%3.30%10.94%17.66%
79
Outperform
$1.02B9.8515.41%1.57%10.80%10.48%
75
Outperform
$980.15M12.496.43%6.14%2.23%2.59%
75
Outperform
$932.93M11.569.65%2.47%10.25%8.73%
72
Outperform
$963.65M18.3010.71%3.39%181.68%28.82%
68
Neutral
$17.10B11.629.70%3.86%11.32%-7.37%
56
Neutral
$933.62M12.5510.45%3.82%37.59%969.87%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BRKL
Brookline Bancorp
11.00
1.07
10.78%
TMP
Tompkins Financial Corporation
65.09
3.89
6.36%
CTBI
Community Bancorp
57.04
7.76
15.75%
FMBH
First Mid-Illinois Bancshares
38.89
0.55
1.43%
AMAL
Amalgamated Bank
33.22
2.44
7.93%
BHRB
Burke & Herbert Bank & Company
64.94
3.08
4.98%

Brookline Bancorp Corporate Events

Business Operations and StrategyFinancial Disclosures
Brookline Bancorp Reports Strong Q2 2025 Earnings
Positive
Jul 23, 2025

Brookline Bancorp reported a net income of $22.0 million for the second quarter of 2025, showing an increase from previous quarters, driven by growth in its C&I portfolio and deposits. Despite a decrease in total loans and leases, the company saw an expansion in its net interest margin and a reduction in nonperforming assets, reflecting solid financial performance and strategic management of its portfolio.

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.

M&A TransactionsShareholder Meetings
Brookline Bancorp Approves Merger with Berkshire Hills
Neutral
May 22, 2025

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.

M&A TransactionsLegal Proceedings
Brookline Bancorp Faces Legal Challenges in Merger
Negative
May 9, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 24, 2025