Brookline Bancorp, Inc. (BRKL) | Investment Case

1. Company Snapshot

1.a. 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.

Show Full description

1.b. Last Insights on BRKL

Brookline Bancorp's recent performance was driven by strong Q2 2025 earnings, with net income of $22.0 million, or $0.25 per share. The company's operating earnings after tax (non-GAAP) were $22.4 million, or $0.25 per share. A merger of equals with Berkshire Hills Bancorp to form Beacon Financial Corporation received regulatory approvals, expected to close on September 1, 2025. The combined entity will be listed on the NYSE under ticker symbol BBT. A quarterly dividend of $0.135 was also announced.

1.c. Company Highlights

Last Price	10.95
Change Percentage	-0.64%
Open	10.95
Previous Close	10.95
Market Cap ( Millions)	976
Volume	5639248
Year High	13.15
Year Low	9.28
M A 50	10.74
M A 200	11.2

FCF Yield	6.67%
Dividend Yield	6.63%
ROE	6.37%
Debt / Equity	95.57%
Net Debt / EBIDTA	593.72%
Price To Book	0.78
Price Earnings Ratio	12.38
Price To FCF	15.0
Price To sales	1.5
EV / EBITDA	14.31

2. Brookline Bancorp's Q2 Earnings: A Mixed Bag

Brookline Bancorp reported earnings of $22 million or $0.25 per share in Q2 2025, with net interest income reaching $88.7 million, up $2.9 million from Q1. The net interest margin improved 10 basis points to 332 basis points. The loan portfolio contracted by $61 million, driven by reductions in commercial real estate and specialty vehicles, while commercial and consumer loans grew. Customer deposits increased $59 million. The actual EPS came in line with estimates at $0.25.

Publication Date: Jul -27

                                    📋 Highlights
                                    Net Earnings:
                                                Brookline Bancorp reported $22 million in Q2 2025 earnings, or $0.25 per share.
Loan Portfolio Changes:
                                                The loan portfolio contracted by $61 million, with reductions in commercial real estate and specialty vehicles.
Deposit Growth:
                                                Customer deposits increased by $59 million, and the net interest margin improved by 10 basis points to 332 basis points.
Asset Quality:
                                                The company sold two commercial real estate loans, recognizing a $3.5 million charge, and added reserves for stressed Boston office credits.
Merger Progress:
                                                The merger with Berkshire Hills is on track, with a planned systems conversion in February and expected closing in September.

                                

Loan Portfolio and Credit Quality

The loan portfolio contraction was driven by reductions in commercial real estate and specialty vehicles, while commercial and consumer loans grew. The company sold 2 commercial real estate loans, recognizing a $3.5 million charge, and added reserves for stressed Boston office credits. The provision for credit losses was $7 million, with total net charge-offs of $5.1 million. Carl M. Carlson mentioned that there's a loan considered 90-day past due due to its maturity date, but it's accruing and being taken out by Mass Housing, indicating a manageable credit risk.

Merger Progress and Expenses

The merger with Berkshire Hills is progressing, with a planned systems conversion in February. Noninterest expense, excluding merger charges, was $57.7 million, down $1.3 million from Q1. Carl M. Carlson stated that the current run rate for expenses is good and doesn't see anything changing significantly, maybe a slight decrease. Guidance includes an effective tax rate of 24.25% and noninterest income of $5.5-$6.5 million.

Valuation and Outlook

With a Price-to-Tangible Book Value (P/TBV) ratio not directly available but a 'P/B Ratio' of 0.77, Brookline Bancorp appears reasonably valued. The Dividend Yield stands at 4.99%, which is attractive for income investors. Analysts estimate next year's revenue growth at 72.7%, driven in part by the merger. The current 'P/E Ratio' is 12.23, which is moderate. Given the guidance for Q3, including a net interest margin up 4-8 basis points and low single-digit loan growth, the company is poised for steady performance.

Guidance and Future Prospects

Guidance for Q3 includes a net interest margin up 4-8 basis points, low single-digit loan growth, and 4-5% deposit growth. The merger is expected to close potentially in September, with a tangible book value dilution of 20% expected to be offset by the upcoming FASB rule change regarding Day 2 CECL. With a 'ROE (%)' of 6.37%, Brookline Bancorp is generating reasonable returns for shareholders.

3. NewsRoom

Elanco Animal Health Set to Join S&P MidCap 400; Sarepta Therapeutics to Join S&P SmallCap 600

Aug -26

Source: prnewswire.com

Berkshire Hills Bancorp and Brookline Bancorp Receive Regulatory Approvals for Merger of Equals to form Beacon Financial Corporation

Aug -25

Source: prnewswire.com

Berkshire Hills Bancorp and Brookline Bancorp to be Combined as Beacon Financial Corporation and Beacon Bank Upon the Closing of their Merger of Equals

Aug -06

Source: prnewswire.com

Berkshire Hills Bancorp and Brookline Bancorp to be Combined as Beacon Financial Corporation and Beacon Bank Upon the Closing of their Merger of Equals

Aug -06

Source: globenewswire.com

Brookline Bancorp, Inc. (BRKL) Q2 2025 Earnings Call Transcript

Jul -24

Source: seekingalpha.com

Brookline Bancorp (BRKL) Q2 Earnings Match Estimates

Jul -23

Source: zacks.com

Brookline Bancorp Announces Second Quarter Results

Jul -23

Source: globenewswire.com

Brookline Bancorp, Inc. Announces Second Quarter 2025 Earnings Release Date and Conference Call

Jul -07

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.00%)

6. Segments

Banking and Related Activities

Expected Growth: 5.0%

Brookline Bancorp's 5.0% growth in Banking and Related Activities is driven by strategic loan portfolio expansion, increased deposit gathering efforts, and improved operating efficiency. Additionally, the bank's focus on commercial and industrial lending, as well as its expansion into new markets, have contributed to its growth momentum.

7. Detailed Products

Commercial Banking

Provides financial solutions to businesses, including cash management, commercial lending, and treasury management services.

Consumer Banking

Offers personal banking services, including checking and savings accounts, credit cards, and personal loans.

Residential Mortgage Lending

Provides mortgage lending services to individuals and families, including purchase and refinance loans.

Commercial Real Estate Lending

Offers commercial real estate loans to businesses and investors, including construction, acquisition, and refinancing loans.

Cash Management

Provides cash management services to businesses, including online banking, wire transfers, and account reconciliation.

Wealth Management

Offers investment and wealth management services to individuals and businesses, including financial planning and investment advice.

8. Brookline Bancorp, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Brookline Bancorp, Inc. is medium due to the presence of alternative financial institutions and online banking platforms.

Bargaining Power Of Customers

The bargaining power of customers is low due to the lack of concentration of customers and the presence of multiple banking options.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the presence of multiple suppliers and the lack of concentration of suppliers.

Threat Of New Entrants

The threat of new entrants is high due to the ease of entry into the banking industry and the presence of fintech companies.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of multiple banks and financial institutions competing for market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	53.60%
Debt Cost	5.50%
Equity Weight	46.40%
Equity Cost	7.85%
WACC	6.59%
Leverage	115.53%

11. Quality Control: Brookline Bancorp, Inc. passed 2 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

MVB Financial

A-Score: 6.3/10

Value: 6.3

Growth: 4.9

Quality: 6.6

Yield: 5.0

Momentum: 8.0

Volatility: 7.0

1-Year Total Return ->

South Plains Financial

A-Score: 6.3/10

Value: 6.6

Growth: 5.9

Quality: 6.6

Yield: 4.0

Momentum: 7.0

Volatility: 7.7

1-Year Total Return ->

Civista Bancshares

A-Score: 6.1/10

Value: 5.7

Growth: 5.7

Quality: 5.8

Yield: 6.0

Momentum: 7.0

Volatility: 6.3

1-Year Total Return ->

United Bancorp

A-Score: 6.0/10

Value: 4.4

Growth: 4.9

Quality: 4.5

Yield: 10.0

Momentum: 6.5

Volatility: 6.0

1-Year Total Return ->

Old Second Bancorp

A-Score: 6.0/10

Value: 5.8

Growth: 7.6

Quality: 5.9

Yield: 2.0

Momentum: 7.0

Volatility: 7.7

1-Year Total Return ->

Brookline Bancorp

A-Score: 5.7/10

Value: 6.1

Growth: 4.2

Quality: 4.4

Yield: 9.0

Momentum: 10.0

Volatility: 0.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-1.72%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.59%

Brookline Bancorp, Inc. - US11373M1071

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on BRKL

1.c. Company Highlights

Higher Yield

Average Quality

Stable Momentum

Earnings Miss

Revenues Beats

Average Yield

Weak Momentum

Earnings Beats

Fairly Valued

Average Growth

Revenues Miss

Medium Volatility

Lower Quality

More Volatile

Strong Momentum

2. Brookline Bancorp's Q2 Earnings: A Mixed Bag

Loan Portfolio and Credit Quality

Merger Progress and Expenses

Valuation and Outlook

Guidance and Future Prospects

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.00%)

6. Segments

Banking and Related Activities

Expected Growth: 5.0%

7. Detailed Products

Commercial Banking

Consumer Banking

Residential Mortgage Lending

Commercial Real Estate Lending

Cash Management

Wealth Management

8. Brookline Bancorp, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Brookline Bancorp, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

10.95$

Current Price

10.95$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA