Brookline Bancorp

BRKL · NASDAQ

$27.34+$0.7969 (+3.00%)TodayMarket closed · Oct 20, 6:30 PM ET

No price history for this range.

BRKL analyst rating

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The case for and against

Updated May 23, 2025

Bull case

Brookline Bancorp's stock outlook appears positive due to an anticipated improvement in key financial metrics, with proforma ROTCE expected to rise significantly to 16.5% by 2026, up from 10.2%, and ROA projected to increase to 1.28% from 0.93%. The bank's net interest margin (NIM) is also on an upward trajectory, with a current NIM of 3.07% reflecting a quarter-over-quarter gain, and further expansion is anticipated in the forthcoming quarter. Additionally, the company's asset maturity schedule is favorable, with a reduced amount of maturing loans in the near term, which positions Brookline Bancorp to capitalize on lower interest rates and enhances its overall profitability profile as it approaches peer performance levels.

Bear case

Brookline Bancorp's financial outlook is negatively impacted by expectations of weaker net interest income (NII) and loan growth, projecting a decrease of 3.4% in NII with a net interest margin (NIM) of 3.44% for 2026. Additionally, the bank's shares are trading at historically low price-to-earnings (P/E) multiples of 9x for 2026E and a price-to-tangible book value (P/TBV) ratio of 1.2x, which signifies a significant discount compared to its peers and its historical average. Furthermore, despite anticipated declines in commercial real estate (CRE) concentration, these adjustments are unlikely to restore the stock to favorable relative valuations, indicating potential weaknesses in overall financial performance.

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