Brookline Ban Stock Earnings Reports

Summary of Key Points from Brookline Bancorp's Q1 2025 Earnings Call for Investors

1. Earnings Performance:

• Brookline Bancorp reported operating earnings of $20 million or $0.22 per share. On a GAAP basis, the net income was $19.1 million, resulting in earnings per share of $0.21, after accounting for merger charges of $971,000.

2. Loan Portfolio Changes:

• The loan portfolio contracted by $130.6 million, primarily due to a strategic reduction in commercial real estate exposures.
• The specialty vehicle portfolio continued to run off, following an exit from that segment last year, while there was growth in general commercial and industrial (C&I) loans.

3. Deposits and Margins:

• Customer deposits increased by $113.8 million, with a concurrent improvement in the net interest margin of 10 basis points to 3.22%. This was attributed to lower funding costs, despite a decrease in average interest-earning assets.

4. Outlook on Interest Rates:

• Expectations for net interest margin improvement continue throughout 2025, though the ongoing volatility and uncertainty in market rates are acknowledged. Projected increases of 4 to 8 basis points for Q2 are based on current market conditions.

5. Previous Guidance Acknowledged:

• Loan growth is expected to remain in the low single digits for the year, while deposit growth is anticipated at 4% to 5%. Noninterest income is estimated to range between $5 million and $6.5 million per quarter.

6. Merger with Berkshire Hills Bancorp:

• The merger process is proceeding smoothly, with regulatory applications filed and stockholder meetings scheduled for May 21. The merger is expected to close in February 2026.
• Conversion planning is well underway, with the core banking platform determined.

7. Credit Quality:

• The company reported $7.6 million in net charge-offs and an overall increase in reserve coverage to 129 basis points of total loans, with the majority of charge-offs originating from a single food manufacturing loan impacted by a leverage buyout.

8. Dividend Information:

• The quarterly dividend has been maintained at $0.135 per share, set to be paid on May 23 to stockholders of record on May 9.

9. Forward-Looking Statements:

• Management emphasized the need for adaptability amid economic uncertainties including interest rates and potential tariffs impacting loan markets, all the while projecting cautious optimism regarding new C&I lending.

10. Investor Considerations:

• Investors should monitor ongoing developments surrounding the merger, potential impacts of interest rates on net interest margins, and the evolving economic backdrop that may affect credit quality and loan growth.

This summary provides essential insights for investors into Brookline Bancorp’s financial performance, strategic direction, and market outlook based on the recent earnings call.