Brookline Bancorp (BRKL) Financials

Brookline Bancorp (NASDAQ:BRKL) has shown consistent growth and solid financial health over the past four years based on the analysis of its quarterly financial statements up to Q1 2025.

Income Statement Highlights:

• Net Interest Income increased steadily from around $78 million in Q2 2022 to $85.8 million in Q1 2025, indicating strong core banking revenue growth.
• Non-interest income has grown, with income from service charges and capital gains showing positive contributions each quarter, adding stability to Brookline’s revenue streams.
• Net Income attributable to common shareholders increased significantly from approximately $7.6 million in Q1 2023 to $19.1 million in Q1 2025, more than doubling in two years.
• Earnings per share (diluted) rose from $0.09 in Q1 2023 to $0.21 in Q1 2025, reflecting improved profitability on a per-share basis despite a modest increase in share count.
• Provision for credit losses showed fluctuations, with a notable peak of $25.5 million in Q1 2023 but generally trending lower to around $6 million in Q1 2025, signaling some volatility in loan credit risk.
• Total non-interest expense remains elevated with some upward trend, driven by salaries, occupancy, and restructuring charges, which could pressure margins if not managed effectively.

Cash Flow Statement Highlights:

• Consistent positive net cash from operating activities, around $8 million in Q1 2025, indicates Brookline’s business operations generate sufficient cash flow.
• Investing activities show variability; Q1 2025 reflects large inflows from sale/maturity of investments partly offset by purchase of investments, suggesting active portfolio management.
• Net cash from financing activities in Q1 2025 is significantly negative (-$367 million), largely due to debt repayments exceeding new debt issuances, implying net debt reduction but potential liquidity impact.
• Cash interest paid and income taxes paid show some quarterly swings but generally align with operational scale and tax liabilities.

Balance Sheet Highlights:

• Total assets grew modestly to approximately $11.5 billion by Q1 2025, driven mainly by loan growth, which increased net of allowances to nearly $9.5 billion.
• The allowance for loan and lease losses remained well controlled relative to loan balances, consistent with improved credit loss provisions.
• Strong equity base of about $1.24 billion with a steady increase over time supports financial stability and regulatory compliance.
• Long-term debt levels fluctuated but remain substantial around $1 billion, highlighting ongoing leverage but manageable given equity growth.

Summary:

Brookline Bancorp demonstrates solid growth in earnings and net interest income, complemented by stable non-interest income. The company’s asset base and equity have increased steadily, supporting its expanded loan portfolio. Credit quality appears to be improving with declining credit loss provisions. However, ongoing elevated expenses and sizeable fluctuations in financing cash flows suggest the need for careful expense and capital management going forward. Overall, Brookline shows positive momentum in profitability and balance sheet strength, which bode well for shareholders.