In its first-quarter financial report, the bank announced a tangible book value per share of $11.03. The bank also reported net charge-offs at a rate of 0.31%, indicating stable asset quality amid a challenging economic backdrop.
The bank's strategy of deliberately reducing its exposure to commercial real estate loans resulted in a contraction of its loan portfolios. This move aligns with its broader objective to bolster its presence in the more diverse and potentially lucrative commercial and industrial (C&I) markets.
Despite these adjustments and the prevailing economic uncertainties, the bank's performance has been robust, with a solid showing from its banking team. The bank's efforts to grow deposits have also been successful, contributing positively to its financial health.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for Brookline Bancorp Inc (BRKL, Financial) is $14.63 with a high estimate of $16.00 and a low estimate of $13.00. The average target implies an upside of 43.38% from the current price of $10.20. More detailed estimate data can be found on the Brookline Bancorp Inc (BRKL) Forecast page.
Based on the consensus recommendation from 4 brokerage firms, Brookline Bancorp Inc's (BRKL, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Brookline Bancorp Inc (BRKL, Financial) in one year is $16.34, suggesting a upside of 60.2% from the current price of $10.2. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Brookline Bancorp Inc (BRKL) Summary page.
Key Business Developments
Release Date: January 30, 2025
- Net Income: $20.7 million on a core operating basis; $17.5 million on a GAAP basis including merger charges.
- Earnings Per Share (EPS): $0.23 on a core operating basis; $0.20 on a GAAP basis.
- Loan Growth: $24 million increase in loans.
- Customer Deposits: Increased by $116 million.
- Net Interest Margin: Improved by 5 basis points to 312 basis points.
- Total Assets Growth: $228 million increase from September.
- Net Interest Income: $85 million, an increase of $2 million from Q3.
- Noninterest Income: $6.5 million, up from $6.3 million in the prior quarter.
- Operating Expenses: $60.3 million for the quarter.
- Provision for Credit Losses: $4 million, a decrease of $700,000 from Q3.
- Dividend: Quarterly dividend maintained at $0.135 per share.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Brookline Bancorp Inc (BRKL, Financial) reported a slight improvement in core operating performance with net income of $20.7 million and operating earnings per share of $0.23.
- Customer deposits increased by $116 million, contributing to a 5 basis point increase in net interest margin.
- The planned merger with Berkshire Hills Bancorp is expected to create a $24 billion financial institution with complementary market footprints and significant economies of scale.
- Total assets grew by $228 million from September, driven by growth in securities and cash equivalents.
- The company maintained its quarterly dividend at $0.135 per share, yielding approximately 4.5% annually.
Negative Points
- Net income on a GAAP basis was lower at $17.5 million due to merger charges of $3.4 million.
- The weighted average coupon on the core loan portfolio declined by 11 basis points during the quarter.
- Operating expenses increased to $60.3 million, driven by additional incentive and commission-related expenses.
- The provision for credit losses was $4 million, although this was a decrease from the previous quarter.
- A $5.1 million charge-off was recorded in the equipment finance sector, specifically related to an industrial laundry loan.
