- **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

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

BRKL(Delisted)

BRKL fundamentals

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