Brookline Bancorp (BRKL) Q4 2024 earnings summary

Executive summary

• Reported Q4 2024 net income of $17.5M ($0.20 EPS); operating earnings of $20.7M ($0.23 EPS), excluding $3.4M merger-related charges.

• Announced merger with Berkshire Hills Bancorp to form a $24B institution, expected to close in H2 2025, aiming for economies of scale and cost savings.

• Loans grew by $24M and customer deposits increased by $117M sequentially.

• Board declared a quarterly dividend of $0.135 per share, payable February 28, 2025.

Financial highlights

• Total assets at year-end 2024 were $11.9B, up $228M sequentially and $523M year-over-year.

• Net interest income for Q4 2024 was $85M, up $2M sequentially; net interest margin rose to 3.12% from 3.07%.

• Non-interest income for Q4 2024 was $6.6M, up $0.2M sequentially, but down 19% year-over-year.

• Operating expenses rose to $63.7M, mainly due to $3.4M in merger expenses and higher compensation.

• Provision for credit losses was $4M, down $700K from Q3.

Outlook and guidance

• Net interest margin expected to improve by 4-8 basis points in Q1 and continue rising through 2025.

• Loan portfolio growth projected in low single digits for 2025; deposit growth anticipated at 4%-5%.

• Non-interest income forecasted at $6-$7M per quarter; expenses managed to $247M or less for the year, excluding merger costs.

• Effective tax rate expected at 24.25%.

• Management expects to be well positioned for 2025, citing solid deposit and loan growth and the upcoming merger.