Brookline Bancorp, Inc. (NASDAQ:BRKL) Q1 2025 Earnings Conference Call April 24, 2025 1:30 AM ET Company Participants Dario Hernandez - Attorney Paul Perrault - Chairman & Chief Executive Officer Carl Carlson - Co-President & Chief Financial Officer Conference Call Participants Mark Fitzgibbon - Piper Sandler Steve Moss - Raymond James Laurie Hunsicker - Seaport Christopher O'Connell - KBW Operator Good afternoon, and welcome to Brookline Bancorp Inc. First Quarter 2025 Earnings Conference Call. All partici ...

April 24, 2025 Certain statements contained in this presentation that are not historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We may also make forward-looking statements in other documents we file with the Securities and Exchange Commissi ...

Core Insights - Brookline Bancorp (BRKL) reported revenue of $91.49 million for the quarter ended March 2025, reflecting a year-over-year increase of 4.1% [1] - Earnings per share (EPS) for the quarter was $0.22, up from $0.16 in the same quarter last year, but below the consensus estimate of $0.23, resulting in an EPS surprise of -4.35% [1] - The reported revenue was also below the Zacks Consensus Estimate of $94.92 million, leading to a revenue surprise of -3.61% [1] Financial Metrics - Efficiency Ratio stood at 65.6%, slightly better than the average estimate of 65.8% based on three analysts [4] - Net Interest Margin was reported at 3.2%, matching the average estimate from three analysts [4] - Average Balance of Total Interest-Earning Assets was $10.88 billion, below the average estimate of $11.11 billion from two analysts [4] - Total Non-Interest Income was $5.66 million, lower than the average estimate of $6.56 million from three analysts [4] - Net Interest Income was $85.83 million, compared to the average estimate of $87.47 million from three analysts [4] - Gain on sales of loans and leases was $0.02 million, significantly below the average estimate of $0.43 million from two analysts [4] - Loan fees were reported at $0.39 million, under the average estimate of $0.60 million from two analysts [4] - Deposit fees were $2.36 million, slightly above the average estimate of $2.31 million from two analysts [4] - Loan level derivative income, net, was $0.07 million, compared to the average estimate of $0.40 million from two analysts [4] Stock Performance - Brookline's shares have returned -9.4% over the past month, compared to a -6.6% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Brookline Bancorp (BRKL) came out with quarterly earnings of $0.22 per share, missing the Zacks Consensus Estimate of $0.23 per share. This compares to earnings of $0.16 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -4.35%. A quarter ago, it was expected that this bank holding company would post earnings of $0.24 per share when it actually produced earnings of $0.23, delivering a surprise of -4.17%.Over the last four quarter ...

Net Income of $19.1 million, EPS of $0.21 Operating Earnings of $20.0 million, Operating EPS of $0.22 Quarterly Dividend of $0.135 EXHIBIT 99.1 Brookline Bancorp Announces First Quarter Results BOSTON, April 23, 2025 (GLOBE NEWSWIRE) -- Brookline Bancorp, Inc. (NASDAQ: BRKL) (the "Company") today announced net income of $19.1 million, or $0.21 per basic and diluted share, for the first quarter of 2025, compared to net income of $17.5 million, or $0.20 per basic and diluted share, for the fourth quarter of 2 ...

Net Income of $19.1 million, EPS of $0.21 Operating Earnings of $20.0 million, Operating EPS of $0.22 Quarterly Dividend of $0.135 BOSTON, April 23, 2025 (GLOBE NEWSWIRE) -- Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced net income of $19.1 million, or $0.21 per basic and diluted share, for the first quarter of 2025, compared to net income of $17.5 million, or $0.20 per basic and diluted share, for the fourth quarter of 2024, and $14.7 million, or $0.16 per basic and diluted share, f ...

BOSTON, April 07, 2025 (GLOBE NEWSWIRE) -- Brookline Bancorp, Inc. (NASDAQ: BRKL) announced today that it will report first quarter 2025 earnings at the close of business on Wednesday, April 23, 2025. Management will host a conference call to review this information at 1:30 PM Eastern Time on Thursday, April 24, 2025. Interested parties may listen to the call and view a copy of the Company’s Earnings Presentation by joining the call via https://events.q4inc.com/attendee/955891780. To listen to the call with ...

Financial Performance - The Company anticipates a decrease in earnings per share to $0.77 for 2024 from $0.85 for 2023[31]. - Total assets increased to $11,473,424 thousand in 2024, up from $11,214,371 thousand in 2023, representing a growth of 2.31%[312]. - The Company reported a net income of $74.999 million for 2023, a decrease of 31.7% from $109.744 million in 2022[367]. - Non-interest income fell by $6.3 million, or 19.8%, to $25.6 million in 2024, driven by declines in loan level derivative income, gain on sales of investment securities, and gain on sales of loans and leases[333]. - The efficiency ratio rose to 68.09% in 2024 from 64.45% in 2023, attributed to lower net interest income and non-interest income, alongside higher non-interest expenses[338]. Capital and Regulatory Compliance - The minimum common equity Tier 1 capital ratio requirement is 4.5%, with a minimum total capital requirement of 8.0%[64]. - The Company is considered "well capitalized" under the FRB's rules applicable to bank holding companies[67]. - The FRB may prohibit bank holding companies from paying dividends if deemed unsafe or unsound, requiring net income to fund dividends[71]. - The aggregate amount of covered transactions with affiliates cannot exceed 10% of the capital stock and surplus of the insured depository institution[73]. - The Company has made a one-time, permanent election to exclude accumulated other comprehensive income from capital[63]. Interest Income and Expenses - Total interest income from investments decreased by $2.96 million, or 6.8%, to $40.6 million in 2024 compared to $43.5 million in 2023[325]. - Interest income from loans and leases increased by $54.2 million to $587.9 million in 2024, representing a yield of 6.07%, compared to $533.7 million and a yield of 5.72% in 2023[323]. - Total interest expense increased by $61.4 million, or 25.8%, to $298.9 million in 2024 from $237.6 million in 2023, driven by higher interest rates and increased volume[326]. - Interest paid on deposits rose by $57.3 million, or 32.6%, in 2024 compared to 2023, primarily due to a $41.9 million increase from higher interest rates[327]. - The yield on interest-earning assets increased to 5.83% for the year ended December 31, 2024, up from 5.50% in 2023, attributed to higher yields on loans and leases[319]. Asset Quality and Loan Performance - The quality of the Company's assets influences earnings, with timely provisions for loan and lease losses necessary based on estimated probable losses[310]. - The allowance for loan and lease losses was $121,628 thousand in 2024, slightly up from $120,613 thousand in 2023[312]. - The provision for credit losses decreased by $16.6 million to $21.6 million in 2024 from $38.2 million in 2023, primarily due to the absence of a day one provision from the PCSB acquisition[331]. - Commercial real estate loans amounted to $5,760,432 thousand, with an interest income of $327,221 thousand, reflecting a yield of 5.59%[312]. - Total loans and leases increased to $9,701,511 thousand, with a net interest income of $589,192 thousand, yielding 6.07%[312]. Employment and Operations - The Company had 951 full-time employees and 49 part-time employees as of December 31, 2024[38]. - The Company operated 63 full-service banking offices in Greater Boston, Massachusetts, Rhode Island, and New York as of December 31, 2024[32]. - The five largest banks in Massachusetts have an aggregate market share of approximately 69%[32]. - The three largest banks in Rhode Island have an aggregate deposit market share of approximately 69%[32]. - The three largest banks in New York have an aggregate deposit market share of approximately 52%[32]. Interest Rate Risk Management - Interest-rate risk management is governed by the ALCO, which establishes exposure limits and monitors the balance sheet's composition[385]. - As of December 31, 2024, the Company's interest-rate risk position was measured to be modestly asset-sensitive, indicating a potential increase in net interest income during rising interest rates[388]. - The estimated economic value of equity (EVE) at risk shows a decrease in sensitivity, with a 300 basis points increase resulting in a change of (5.5)% as of December 31, 2024, compared to (6.3)% in 2023[394]. - The cumulative one-year negative gap position increased from $521.4 million or 4.89% of total interest-earning assets as of December 31, 2023, primarily due to an increase in borrowed funds and non-maturity deposits[400]. - The weighted average rate for total interest-earning assets was 5.61% as of December 31, 2024, compared to 5.07% for interest-bearing liabilities, resulting in a net interest margin of 2.41%[397].

Core Viewpoint - Brookline Bancorp (BRKL) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on rising earnings estimates, which are a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system highlights the strong correlation between changes in earnings estimates and near-term stock price movements, making it a valuable tool for investors [2][3]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to price movements based on their buying or selling activities [3]. Business Improvement Indicators - The upgrade reflects an improvement in Brookline's underlying business, with rising earnings estimates expected to drive the stock price higher [4]. - Brookline is projected to earn $1.36 per share for the fiscal year ending December 2025, representing a year-over-year increase of 67.9% [7]. Zacks Rank System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [6]. - The upgrade places Brookline in the top 5% of Zacks-covered stocks, indicating its strong potential for market-beating returns in the near term [9]. Recent Trends in Earnings Estimates - Over the past three months, the Zacks Consensus Estimate for Brookline has increased by 25.2%, reflecting analysts' growing confidence in the company's earnings potential [7].

Core Viewpoint - Brookline Bancorp reported quarterly earnings of $0.23 per share, missing the Zacks Consensus Estimate of $0.24 per share, and showing a decline from $0.26 per share a year ago, indicating an earnings surprise of -4.17% [1] Financial Performance - The company posted revenues of $91.58 million for the quarter ended December 2024, which was 0.72% below the Zacks Consensus Estimate, and remained unchanged compared to the previous year [2] - Over the last four quarters, Brookline has surpassed consensus EPS estimates two times and topped consensus revenue estimates only once [2] Stock Performance - Brookline shares have increased by approximately 2.4% since the beginning of the year, while the S&P 500 has gained 3.2% [3] - The stock's immediate price movement will largely depend on management's commentary during the earnings call [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.24 on revenues of $94.7 million, and for the current fiscal year, it is $1.09 on revenues of $397.38 million [7] - The estimate revisions trend for Brookline is currently favorable, resulting in a Zacks Rank 2 (Buy) for the stock, suggesting it is expected to outperform the market in the near future [6] Industry Context - The Financial - Savings and Loan industry, to which Brookline belongs, is currently ranked in the top 12% of over 250 Zacks industries, indicating a positive outlook for stocks within this sector [8]