Brookline Bancorp Reports Q1 2025 Earnings Amid Merger Plans

Categories: Rhode Island Business NewsRhode Island News

A bustling office environment highlighting teamwork in finance.

News Summary

Brookline Bancorp Inc. has reported a net income of $19.1 million for Q1 2025, a 30.2% increase year-over-year, though it fell short of Wall Street earnings expectations. The company’s total quarterly revenue reached $159.4 million, and it is currently navigating a major merger with Berkshire Hills Bancorp valued at $1.1 billion. The merger is set to create a combined entity with $24 billion in assets, aiming to enhance operational efficiency across five states. The company’s shares have seen a 14% decline in 2025 but are still up 7% compared to the previous year.

Boston, Massachusetts – Brookline Bancorp Inc. has announced a net income of $19.1 million for the first quarter of 2025, marking a significant 30.2% increase compared to the same period last year. Despite this growth, the financial results fell short of Wall Street expectations, with earnings per share (EPS) reported at 21 cents, below the average estimate of 23 cents per share.

The company’s total quarterly revenue reached $159.4 million, while adjusted revenue, excluding certain costs such as those related to mergers and acquisitions, amounted to $91.5 million. Brookline Bancorp’s market performance has seen declines, with shares down about 14% since the beginning of 2025, although they have experienced a 7% increase over the past year and are currently trading at $10.20.

Brookline Bancorp is the parent organization of Bank Rhode Island, Brookline Bank, and PCSB Bank, and has reported total assets of $11.9 billion. The company is expected to provide a more detailed report of its first quarter 2025 earnings on April 23, 2025, followed by a conference call scheduled for April 24, 2025, at 1:30 PM Eastern Time.

In addition to its quarterly performance, Brookline Bancorp is currently in the process of merging with Berkshire Hills Bancorp Inc. in a deal valued at $1.1 billion. Following the successful completion of this merger, Brookline shareholders will receive 0.42 shares of Berkshire for each outstanding share they hold in Brookline. This merger is anticipated to close in the second half of 2025 and is projected to create a combined entity with $24 billion in assets, operating across five states.

Leadership of the post-merger company will see Brookline’s CEO, Paul Perrault, take on the roles of president and CEO of the newly formed bank. Governance of the new organization will feature a board consisting of eight directors from each organization, with Brookline’s chair leading the group. The merged company will be organized into six distinct regions to enhance operational efficiency and local decision-making.

The announcement of the new bank’s name and ticker symbol, along with further details regarding its governance structure, is expected prior to the merger’s completion. This transition aims to leverage the strengths of both banking institutions to better serve a broader customer base across multiple states.

Brookline Bancorp’s solid quarterly results, despite missing analyst forecasts, indicate a resilient financial position, which may serve as a foundation for future growth, particularly as the company prepares for its significant merger with Berkshire Hills Bancorp.