- **Q2 Financial Performance**: $22M net income, 10 bps NIM expansion to 332 bps, and 10% YoY revenue growth.
- **Merger Momentum**: Systems go-live February 9, 2025; $90M credit limit post-merger.
- **Credit Challenges**: $7M provision driven by Boston office portfolio stress, but CRE exposure to capital at 363% (target 300%).
- **Rate Sensitivity**: 25 bps cut could flatten Q3 NIM, but $927M wholesale funding repricing provides tailwind.
- **Shareholder Returns**: Dividend maintained; potential early adoption of FASB ASU could reduce tangible book dilution by $0.84/share.

**【CEO Summary Section】**
- **Q2 Earnings**: $22 million ($0.25 per share), driven by intentional balance sheet management ahead of the Berkshire merger.
- **Loan Portfolio**: Decreased by $61 million (down $95M in CRE, $46M in specialty vehicles), offset by growth in commercial ($53M) and consumer ($27M) loans.
- **Deposit Growth**: +$59 million, with net interest margin improving 10 bps to 332 bps.
- **Boston Office Portfolio Stress**: Added $1M reserves for 2 commercial laundry and grocery credits; overall office portfolio outside Boston performing well.
- **Merger Progress**: Shareholder approval secured; systems conversion targeted for February 9, 2025. Anticipate Fed approval by September.

**【CFO Financial Commentary】**
- **Revenue**: $94.7 million (QoQ +3%, YoY +10%), with net interest income up $2.9 million to $88.7 million.
- **Expense Management**: Noninterest expenses (excluding merger charges) down $1.3 million to $57.7 million.
- **Credit Provisions**: $7 million (QoQ +$1M), reflecting $5.1 million net charge-offs.
- **Dividend**: Maintained at $0.135 per quarter.
- **Forward Guidance**: 
  - NIM to increase 4-8 bps in Q3 (no rate cut assumption).
  - Loan growth: low single digits for 2025.
  - Deposit growth: 4-5%.
  - Noninterest income: $5.5-6.5 million/Q.
  - Tax rate: 24.25% (excl. nondeductible merger costs).

**【Q&A Key Highlights】**
- **Merger Credit Limits**: Post-merger, expect to handle loans up to $90 million (double current capacity).
- **FASB ASU Impact**: Day-2 CECL charge of $94.5 million ($71M after tax) to be reversed if FASB issues final rule by Q4. Could accelerate earn-back period from 2.9 years.
- **Rate Cut Sensitivity**: 25 bps cut could flatten NIM initially, but $556M CDs repricing at 410 bps and $371M borrowings at 477 bps provide long-term benefit.
- **Mass Housing Takeout**: 90-day past due loan (100% leased) expected to resolve in Q3.
- **Expense Run Rate**: Current $57.7M level sustainable, may decline slightly in Q3.


Brookline Bancorp, Inc. (BRKL) Q2 2025 Earnings Call Transcript

- **Q1 Performance Strong**: $20M operating earnings vs. $19.1M GAAP net income, driven by $113.8M deposit growth and 10bps margin expansion. 
- **Strategic Portfolio Adjustment**: Intentional $136.6M loan runoff to reduce CRES risk, balanced by 4-5% deposit growth guidance. 
- **Merger Momentum**: Berkshire Hills merger on track for H2 2025 close; system conversion planned for Q1 2026. 
- **Tariff Impact Limited**: No material impact on manufacturing/equipment finance loans, but underwriting now includes tariff risk assessment. 
- **2025 Outlook**: Low single-digit loan growth, $247M expense target, and 4-8bps margin expansion in Q2 (ex-Fed cuts).

**【CEO Summary Section】**
- Q1 operating earnings: $20 million ($0.22 per share) vs. GAAP net income of $19.1 million ($0.21 per share). 
- Intentional $136.6 million loan portfolio contraction (CRES: $135M, Equipment Finance: $32M) to reduce commercial real estate risk. 
- Customer deposits grew $113.8M, net interest margin +10bps to 3.22%. 
- Merger with Berkshire Hills progressing; system conversion planned for Q1 2026. 
- Expect modest loan growth (low single digits) and deposit growth (4-5%) for 2025. 

**【CFO Financial Commentary】**
- Total assets: $11.5B (-$385.5M vs. Q4). 
- CRES portfolio now 375% of risk-based capital (down from 425% at year-end). 
- Noninterest expense (ex-merger): $59M (-$1.3M vs. Q4). 
- Q2 net interest margin guidance: +4-8bps (excludes Fed rate cuts). 
- Full-year noninterest expense target: $247M (ex-merger costs). 
- 2025 merger-related costs: ~$15M. 

**【Q&A Key Takeaways】**
- Tariffs creating uncertainty but no material impact yet on manufacturing/equipment finance loans. 
- 25bps Fed rate cut could benefit margin if yield curve steepens. 
- CRES runoff (~$135M in Q1) unlikely to continue at same pace post-merger. 
- Berkshire Hills merger expected to close in H2 2025; combined dividend policy to mirror current Brookline payout. 
- Equipment finance portfolio now $267M (down $29M in Q1). 
- 95% of loan book has pass rating; $7.6M Q1 charge-offs primarily from single C&I credit. 
- 2025 guidance: 
  - Loan growth: low single digits 
  - Deposit growth: 4-5% 
  - Noninterest income: $5.5-6.5M/Q 
  - Effective tax rate: 24.25%

Brookline Bancorp (BRKL)-24 Apr 25-2025 Q1 Earnings call transcript

- **Q4 Results Strong**: $20.7M net income, 3.12% margin, $116M deposit growth. 
- **Merger Excitement**: $24B combined entity with 90% market overlap; Q2 2025 close target. 
- **Margin Expansion**: 4-8bps Q1, 316-320bps full year; 2025 loan growth ~1-3%. 
- **Credit Discipline**: $5.1M charge-off in one-off industrial loan; CRE runoff on track. 
- **Deposit Competition**: 33% rate cut beta; 4-5% deposit growth target. 
- **Risk Management**: 2.23% general reserve, 2.6% SV book coverage.

**【CEO Opening Remarks】**
- Q4 2024 net income: $20.7 million (GAAP: $17.5 million after merger charges). Operating EPS: $0.23 (GAAP: $0.20). 
- Loans +$24M, deposits +$116M, net interest margin +5bps to 3.12%. 
- Announced merger with Berkshire Hills to create $24B institution with 90%+ market overlap. 
- Expect margin improvements as rates normalize; 2025 loan growth ~low single digits.

**【CFO Financial Breakdown】**
- Assets +$228M (securities +$176M, loans +$24M). Loan yield 607bps vs. 617bps Q3. 
- Deposits +$117M (time/money market dominant). Funding cost 346bps (-21bps QoQ). 
- Noninterest income $6.5M (+$0.2M). Expenses +$2.4M due to incentives. 
- 2025 guidance: margin 316-320bps (Q1), deposits +4-5%, expenses <$247M. 
- $0.135 quarterly dividend maintained (4.5% yield).

**【Q&A Key Takeaways】**
- **Merger Timeline**: Regulator approvals expected Q2 2025; using year-end 2024 data for filings. 
- **Credit Quality**: $5.1M charge-off in industrial laundry loan (fully reserved). CRE runoff ~$2.2M/week. 
- **Deposit Strategy**: Aggressively repricing to match peers; 33% beta on rate cuts. 
- **Margin Volatility**: 4-8bps Q1 expansion; 2025 growth dependent on Fed policy. 
- **Specialty Vehicles**: $296M book shrinking as planned; 2.6% reserve coverage. 
- **Tax Rate**: 24.25% ex-merger costs. 
- **CRE Concentration**: Pro forma merger ratio <300%; no immediate actions beyond planned runoff.

Brookline Bancorp (BRKL)-30 Jan 25-2024 Q4 Earnings call transcript

Brookline Bancorp (BRKL)-24 Oct 24-2024 Q3 Earnings call transcript

Brookline Bancorp (BRKL)-25 Jul 24-2024 Q2 Earnings call transcript

Brookline Bancorp (BRKL)-25 Apr 24-2024 Q1 Earnings call transcript

Brookline Bancorp (BRKL)-25 Jan 24-2023 Q4 Earnings call transcript

Brookline Bancorp (BRKL)-26 Oct 23-2023 Q3 Earnings call transcript

Brookline Bancorp (BRKL)-27 Jul 23-2023 Q2 Earnings call transcript

Brookline Bancorp (BRKL)-27 Apr 23-2023 Q1 Earnings call transcript

Brookline Bancorp (BRKL)-26 Jan 23-2022 Q4 Earnings call transcript

Brookline Bancorp (BRKL)-28 Oct 22-2022 Q3 Earnings call transcript

Brookline Bancorp (BRKL)-30 Jul 22-2022 Q2 Earnings call transcript

Brookline Bancorp (BRKL)-29 Apr 22-2022 Q1 Earnings call transcript

Brookline Bancorp (BRKL)-27 Jan 22-2021 Q4 Earnings call transcript

Brookline Bancorp (BRKL)-29 Oct 21-2021 Q3 Earnings call transcript

Brookline Bancorp (BRKL)-1 Aug 21-2021 Q2 Earnings call transcript

Brookline Bancorp (BRKL)-30 Apr 21-2021 Q1 Earnings call transcript

Brookline Bancorp (BRKL)-28 Jan 21-2020 Q4 Earnings call transcript

Brookline Bancorp (BRKL)-31 Oct 20-2020 Q3 Earnings call transcript

Brookline Bancorp (BRKL)-23 Jul 20-2020 Q2 Earnings call transcript

Brookline Bancorp (BRKL)-2 May 20-2020 Q1 Earnings call transcript

Brookline Bancorp (BRKL)-30 Jan 20-2019 Q4 Earnings call transcript

Brookline Bancorp (BRKL)-25 Oct 19-2019 Q3 Earnings call transcript

Brookline Bancorp (BRKL)-28 Jul 19-2019 Q2 Earnings call transcript

Brookline Bancorp (BRKL)-26 Apr 19-2019 Q1 Earnings call transcript

Brookline Bancorp (BRKL)-31 Jan 19-2018 Q4 Earnings call transcript

Brookline Bancorp (BRKL)-25 Oct 18-2018 Q3 Earnings call transcript

Brookline Bancorp (BRKL)-26 Jul 18-2018 Q2 Earnings call transcript

Brookline Bancorp (BRKL)-29 Apr 18-2018 Q1 Earnings call transcript

Brookline Bancorp (BRKL)-1 Feb 18-2017 Q4 Earnings call transcript

Brookline Bancorp (BRKL)-19 Oct 17-2017 Q3 Earnings call transcript

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