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Brookline Bancorp (BRKL)
NASDAQ:BRKL
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Brookline Bancorp
(NASDAQ:BRKL)
Rating:76Outperform
Price Target:―
Positive Factors
Earnings
The merger of BHLB and BRKL is expected to positively impact long-term earnings.
Strategic Positioning
The combination of profitability and a strong capital base should afford management greater strategic flexibility to deploy capital via organic growth, dividends, buybacks, and acquisitions.
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)
Market Cap
$932.03M
Dividend Yield5.11%
Average Volume (3M)492.04K
Price to Earnings (P/E)12.8
Beta (1Y)0.91
Revenue Growth4.33%
EPS Growth-11.14%
CountryUS
Employees951
SectorFinancial
Sector Strength81
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.21
Shares Outstanding89,104,610
10 Day Avg. Volume541,334
30 Day Avg. Volume492,041
Financial Highlights & Ratios
PEG Ratio1.98
Price to Book (P/B)0.76
Price to Sales (P/S)0.00
P/FCF Ratio22.77
Enterprise Value/Market Cap2.31
Enterprise Value/Revenue1.36
Enterprise Value/Gross Profit5.05
Enterprise Value/Ebitda6.72
Forecast
1Y Price Target
$13.25Price Target Upside26.67% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Brookline Bancorp Business Overview & Revenue Model
Company DescriptionBrookline 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 MoneyBrookline Bancorp generates revenue primarily through interest income from loans and leases, which is the difference between the interest earned on loans and the interest paid on deposits. The company also earns non-interest income from fees and service charges associated with its financial products and services, such as account maintenance fees, transaction fees, and fees for investment advisory services. Additionally, Brookline Bancorp benefits from strategic partnerships and acquisitions that expand its market presence and customer base, further enhancing its revenue streams. The company's well-diversified portfolio allows it to mitigate risks and maintain a stable income flow.
Brookline Bancorp Financial Statement Overview
Summary
Brookline Bancorp shows strong financial health with revenue growth and solid operational margins. The balance sheet is stable, with an improved debt position and strong equity base, but the decline in operating cash flow indicates challenges in cash generation that need attention.Income Statement
Brookline Bancorp has demonstrated consistent revenue growth over the past years, with a notable increase in total revenue from $333 million in 2023 to $628 million in 2024. The gross profit margin remains stable, indicating effective cost management. However, the net profit margin saw a slight decline due to increased expenses, with net income decreasing from $75 million in 2023 to $68 million in 2024. The EBIT margin remains strong, highlighting operational efficiency.82
Very Positive
Balance Sheet
The balance sheet shows a healthy equity position, with stockholders' equity increasing to $1.2 billion in 2024. The debt-to-equity ratio has improved significantly due to the elimination of total debt in 2024, reflecting strong financial stability. The equity ratio is favorable, indicating a solid financial foundation. However, the return on equity has decreased slightly, suggesting room for improvement in utilizing equity effectively.78
Positive
Cash Flow
Operating cash flow has decreased from $117 million in 2023 to $58 million in 2024, which could indicate challenges in cash generation from operations. However, the company maintains a strong free cash flow position. The free cash flow to net income ratio is robust, but the decline in operating cash flow suggests the need for enhanced cash management strategies.75
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 628.52M | 333.44M | 328.12M | 309.36M | 284.81M | Gross Profit |
| 628.52M | 333.44M | 328.12M | 309.36M | 284.81M | EBIT |
| 623.28M | 135.39M | 191.39M | 154.59M | 62.08M | EBITDA |
| 0.00 | 109.91M | 146.47M | 161.26M | 68.83M | Net Income Common Stockholders |
| 68.72M | 75.00M | 109.74M | 115.44M | 47.63M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 543.67M | 133.03M | 1.04B | 1.05B | 1.18B | Total Assets |
| 11.91B | 11.38B | 9.22B | 8.60B | 8.94B | Total Debt |
| 1.56B | 1.41B | 1.45B | 377.83M | 844.39M | Net Debt |
| 1.02B | 1.28B | 1.26B | 311.56M | 409.47M | Total Liabilities |
| 10.68B | 10.18B | 8.23B | 377.83M | 844.39M | Stockholders Equity |
| 1.22B | 1.20B | 992.13M | 995.34M | 941.78M |
| Cash Flow | Free Cash Flow | |||
| 99.97M | 104.24M | 113.37M | 128.42M | 109.58M | Operating Cash Flow |
| 104.95M | 116.60M | 120.76M | 133.21M | 112.49M | Investing Cash Flow |
| -139.60M | -665.26M | -557.69M | 131.11M | -695.53M | Financing Cash Flow |
| 445.29M | 298.74M | 492.15M | -371.51M | 940.17M |
Brookline Bancorp Technical Analysis
Negative
10.46
Price Trends
10.43
Positive
11.02
Negative
10.81
Negative
Market Momentum
0.13
Positive
46.38
Neutral
33.97
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BRKL, the sentiment is Negative. The current price of 10.46 is below the 20-day moving average (MA) of 10.64, above the 50-day MA of 10.43, and below the 200-day MA of 10.81, indicating a neutral trend. The MACD of 0.13 indicates Positive momentum. The RSI at 46.38 is Neutral, neither overbought nor oversold. The STOCH value of 33.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 3 New Risks
1.
Current holders of the our common stock will have a significantly reduced ownership and voting interest in the combined company after the Merger and will therefore have less voting influence over the combined company. Q4, 2024
2.
Because the market price of Berkshire's common stock may fluctuate, our stockholders cannot be certain of the precise value of the merger consideration they may receive in our proposed Merger with Berkshire. Q4, 2024
3.
liquidity and competitive position will be negatively affected. Q4, 2024
Brookline Bancorp Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $851.97M | 8.79 | 20.78% | ― | -1.46% | ― | |
76 Outperform | $932.03M | 12.78 | 6.01% | 5.11% | 4.33% | -11.14% | |
73 Outperform | $1.14B | 16.83 | 10.82% | 1.43% | 18.79% | -11.25% | |
73 Outperform | $917.89M | 13.01 | 6.21% | 3.14% | 2.27% | -2.41% | |
72 Outperform | $1.02B | 11.38 | 5.51% | 4.72% | 1.38% | -10.46% | |
68 Neutral | $1.30B | 11.59 | 9.38% | 3.30% | 3.01% | 4.55% | |
64 Neutral | $12.66B | 9.79 | 7.67% | 17015.07% | 12.23% | -6.06% |
* Financial Sector Average
Performance Comparison
BRKL
Brookline Bancorp
10.46
2.15
25.87%
OCFC
Oceanfirst Financial
16.79
2.47
17.25%
TCBK
Trico Bancshares
39.65
3.10
8.48%
WRLD
World Acceptance
142.79
17.14
13.64%
CNOB
ConnectOne Bancorp
22.64
3.00
15.27%
BFC
Bank First National
114.52
36.96
47.65%
Brookline Bancorp Earnings Call Summary
Earnings Call Date:Apr 23, 2025
(Q1-2025)
| % Change Since: 3.87%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Neutral
The earnings call demonstrated solid operating results with improvements in customer deposits, net interest margin, and progress on the merger with Berkshire Hills Bancorp. However, there were notable challenges, including a contraction in the loan portfolio, a decrease in total assets, and increased provisions for credit losses amid economic uncertainty.Q1-2025 Updates
Positive Updates
Increase in Customer Deposits
Customer deposits increased by $113.8 million, reflecting a positive trend in customer retention and growth.
Net Interest Margin Improvement
The net interest margin improved by 10 basis points to 3.22%, driven by lower funding costs.
Merger Progress with Berkshire Hills Bancorp
The planned merger with Berkshire Hills Bancorp is moving along nicely with regulatory applications filed and stockholder meetings scheduled.
Operating Earnings
Solid core operating earnings for the first quarter were reported at $20 million or $0.22 per share.
Stockholders' Equity Increase
Stockholders' equity rose by $18 million due to retained earnings and lower mark-to-market on the available-for-sale portfolio.
Negative Updates
Loan Portfolio Contraction
The loan portfolio contracted by $130.6 million due to intentional reductions in commercial real estate exposures.
Decrease in Total Assets
Total assets decreased by $385.5 million from the end of the year due to a deliberate decrease in cash equivalents and loan portfolio components.
Increase in Provision for Credit Losses
Provision for credit losses was $6 million, an increase of $2 million from Q4, with $7.6 million in net charge-offs.
Economic Uncertainty
Increased economic uncertainty is affecting market rates and financial planning, impacting net interest margin projections.
Company Guidance
During the Brookline Bancorp Inc. First Quarter 2025 Earnings Conference Call, the company provided detailed guidance on its financial performance and strategic priorities. Operating earnings for the first quarter were reported at $20 million, translating to $0.22 per share, while net income, including merger charges of $971,000, was $19.1 million, or $0.21 per share. The company experienced a planned contraction in its loan portfolio by $130.6 million, primarily in commercial real estate, and an increase in customer deposits by $113.8 million. The net interest margin improved by 10 basis points to 3.22%, with net interest income reaching $85.8 million, an increase of $800,000 from the previous quarter. Noninterest expenses, excluding merger charges, were $59 million, a decrease from the previous quarter due to lower compensation and marketing costs. The company anticipates a modest growth in its loan portfolio for the remainder of 2025, with deposit growth expected at 4% to 5%. Additionally, Brookline Bancorp is progressing with its merger with Berkshire Hills Bancorp, aiming for completion in February, with regulatory applications already filed and stockholder meetings scheduled. The effective tax rate excluding merger costs is expected to be around 24.25%.Brookline Bancorp Corporate Events
DividendsBusiness Operations and StrategyFinancial Disclosures
Brookline Bancorp Reports Increased Q1 2025 Net Income
Positive
Apr 23, 2025
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.
Spark’s Take on BRKL Stock
According to Spark, TipRanks’ AI Analyst, BRKL is a Neutral.
Brookline Bancorp’s overall stock score reflects strong financial health and reasonable valuation, although technical indicators suggest caution due to bearish trends. The earnings call provided positive insights about future growth through strategic mergers, but highlighted operating challenges. The stock’s attractive dividend yield supports its appeal, but technical weaknesses and cash flow concerns weigh on its overall attractiveness.
To see Spark’s full report on BRKL stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.