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]

Financial Performance - Net income for Q4 2024 was $17.5 million, or $0.20 per share, down from $22.9 million, or $0.26 per share, in Q4 2023[2] - Operating earnings for Q4 2024 were $20.7 million, or $0.23 per share, compared to $20.1 million, or $0.23 per share, in Q3 2024[2] - Net income for the three months ended September 30, 2024, was $17,536 thousand, down from $20,142 thousand in the previous quarter[30] - Basic earnings per common share for the twelve months ended December 31, 2024, was $0.77, down from $0.85 in 2023, a decrease of 9.4%[44] - Net income for the twelve months ended December 31, 2024, was $68,715,000, down from $74,999,000 in 2023, reflecting a decrease of 8.4%[44] Asset and Liability Management - Total assets increased by $228.6 million to $11.9 billion from Q3 2024, and by $523.1 million from $11.4 billion at the end of Q4 2023[5] - Total loans and leases reached $9.8 billion, an increase of $137.7 million from Q4 2023[5] - Total deposits increased by $169.4 million to $8.9 billion from Q3 2024, and by $353.5 million from $8.5 billion at the end of Q4 2023[7] - Total assets as of September 30, 2024, were $11,905,326 thousand, an increase from $11,676,721 thousand at the end of the previous quarter[33] - Total liabilities increased to $10,348,045, up from $10,235,301, reflecting a growth of 1.1% year-over-year[51] Income and Expense Analysis - Net interest income rose to $85.0 million in Q4 2024, up from $83.0 million in Q3 2024, with a net interest margin of 3.12%[10] - Non-interest income for Q4 2024 was $6.6 million, an increase of $0.2 million from Q3 2024[12] - Total non-interest income decreased to $25,615,000 in 2024 from $31,934,000 in 2023, a decline of 19.6%[44] - Total non-interest expense increased to $241,865,000 in 2024 from $239,524,000 in 2023, a slight increase of 1.0%[44] - Non-interest expense increased to $63,719 thousand for the three months ended September 30, 2024, from $57,948 thousand in the previous quarter[30] Credit Quality and Provisions - The provision for credit losses decreased to $4.1 million in Q4 2024 from $4.8 million in Q3 2024[13] - Provision for credit losses on loans was $22,003,000 in 2024, significantly lower than $37,868,000 in 2023, indicating improved asset quality[44] - Nonperforming loans and leases as a percentage of total loans and leases decreased to 0.73% from 0.71%, indicating improved asset quality[47] - The allowance for loan and lease losses was $125,083 thousand, which is 1.28% of total loans and leases, consistent with the previous quarter's ratio of 1.31%[34] - Net charge-offs totaled $7,252 million, an increase from $3,808 million in the previous quarter, indicating higher credit losses[47] Tax and Regulatory Matters - The effective tax rate for Q4 2024 was 26.4%, compared to 24.7% in Q3 2024[18] - The effective tax rate for the twelve months ended December 31, 2024, was 24.5%, compared to 20.1% in 2023, representing an increase of 22%[60] Mergers and Acquisitions - The proposed merger with Berkshire Hills Bancorp is expected to close by the end of the second half of 2025, with Brookline stockholders owning approximately 45% of the combined company[23] - The company reported merger and acquisition expenses of $4,201 for the twelve months ended December 31, 2024, compared to $7,411 in 2023, indicating a decrease of 43%[60] Shareholder Metrics - Return on average assets (annualized) was 0.61% for the three months ended September 30, 2024, compared to 0.70% in the previous quarter[33] - Return on average stockholders' equity (annualized) was 5.69% for the three months ended September 30, 2024, down from 6.63% in the previous quarter[33] - Total stockholders' equity increased to $1,221,939 million from $1,198,644 million, reflecting a growth of approximately 1.9%[65] - Return on average tangible stockholders' equity was 7.21% for the three months ended December 31, 2024, compared to 10.12% in the previous quarter[62] Growth Metrics - Total interest and dividend income for the twelve months ended December 31, 2024, was $628,521,000, an increase from $577,287,000 in 2023, representing an 8.9% growth[43] - Total loans and leases for the twelve months ended December 31, 2024, amounted to $587,929,000, up from $533,739,000 in 2023, an increase of 10.1%[43] - Total commercial loans and leases increased to $52,957 million, up from $46,185 million, representing a growth of 14.5% year-over-year[47]

Core Points - Brookline Bancorp, Inc. will report its fourth quarter 2024 earnings on January 29, 2025, with a conference call scheduled for January 30, 2025 [1] - The company has $11.9 billion in assets and operates branches in Massachusetts, Rhode Island, and New York [2] Company Overview - Brookline Bancorp, Inc. is a multi-bank holding company that includes Brookline Bank, Bank Rhode Island, and PCSB Bank [2] - The company offers a variety of banking services, including commercial, business, and retail banking, as well as cash management products and online banking services [2] - Additional services include consumer and residential loans, equipment financing through Eastern Funding, and wealth management through Clarendon Private [2]

Group 1: TPG RE Finance Trust (TRTX) - TPG RE Finance Trust is a commercial real estate finance company focusing on originating, acquiring, and managing commercial mortgage loans and related debt instruments [1] - The Zacks Consensus Estimate for its current year earnings has increased by 1.8% over the last 60 days [1] Group 2: Washington Trust Bancorp (WASH) - Washington Trust Bancorp is a registered bank holding company engaged in banking and financial services [2] - The company has a dividend yield of 10.6%, significantly higher than the industry average of 0.0% [2] - The Zacks Consensus Estimate for its current year earnings has increased nearly 4.6% over the last 60 days [2] Group 3: Brookline Bancorp (BRKL) - Brookline Bancorp is a bank holding company providing commercial, business, and retail banking services [3] - The company has a dividend yield of 6.4%, compared to the industry average of 2.4% [3] - The Zacks Consensus Estimate for its current year earnings has increased nearly 6.5% over the last 60 days [3] Group 4: General Dividend Information - The average dividend yield for the companies mentioned is significantly higher than their respective industry averages [2][3][4]

Core Insights - Three stocks are highlighted with a buy rank and strong income characteristics for investors to consider on December 6 Group 1: Brookline Bancorp, Inc. (BRKL) - Brookline Bancorp has seen a 6.5% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - The company has a dividend yield of 4.2%, which is higher than the industry average of 2.9% [2] Group 2: SB Financial Group, Inc. (SBFG) - SB Financial Group has experienced a 4% increase in the Zacks Consensus Estimate for its current year earnings in the past 60 days [2] - The company offers a dividend yield of 2.7%, surpassing the industry average of 2.4% [3] Group 3: Peoples Financial Services Corp. (PFIS) - Peoples Financial Services has seen a 6.8% increase in the Zacks Consensus Estimate for its next year earnings over the last 60 days [3] - The company has a dividend yield of 4.5%, compared to the industry average of 2.4% [4]

Group 1 - Brookline Bancorp, Inc. (BRKL) has seen a 6.5% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Brookline Bancorp, Inc. offers a dividend yield of 4.2%, which is higher than the industry average of 3.0% [2] - Mach Natural Resources LP (MNR) has experienced a 4.3% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Mach Natural Resources LP (MNR) has a dividend yield of 15.5%, significantly above the industry average of 0.0% [3]

Core Viewpoint - Brookline Bancorp (BRKL) has experienced a 5.4% decline in shares over the past week, but the formation of a hammer chart pattern suggests potential support and a possible trend reversal in the future [1] Group 1: Technical Indicators - The hammer chart pattern indicates a potential bottoming out, with reduced selling pressure and a possible shift in control from bears to bulls [2] - The hammer pattern forms when there is a small candle body with a long lower wick, signaling that buying interest has emerged after a new low during a downtrend [2] Group 2: Fundamental Indicators - There has been a positive trend in earnings estimate revisions for BRKL, with a 6.5% increase in the consensus EPS estimate over the last 30 days, indicating strong agreement among analysts about improved earnings potential [3] - BRKL holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks, which typically outperform the market [3] - The Zacks Rank serves as a timing indicator, suggesting that the company's prospects are beginning to improve, reinforcing the bullish case for BRKL [3]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Brookline Bancorp (BRKL) - Brookline Bancorp currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 1 (Strong Buy), suggesting it is expected to outperform the market [3] Performance Metrics - Over the past week, BRKL shares increased by 3.78%, while the Zacks Financial - Savings and Loan industry rose by 0.53% [5] - In a longer timeframe, BRKL's monthly price change is 26.88%, significantly outperforming the industry's 9.44% [5] - Over the last quarter, BRKL shares have risen by 31.02%, and by 42.24% over the past year, compared to the S&P 500's increases of 13.52% and 37.4%, respectively [6] Trading Volume - The average 20-day trading volume for BRKL is 569,307 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, three earnings estimates for BRKL have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $0.77 to $0.82 [9] - For the next fiscal year, three estimates have also moved upwards without any downward revisions [9] Conclusion - Given the strong performance metrics and positive earnings outlook, BRKL is positioned as a promising investment opportunity with a Momentum Score of A [9]