Latest news with #BrooklineBancorp
Yahoo
4 days ago
- Business
- Yahoo
Two merging Boston banks to rebrand under new Beacon name
Berkshire Hills Bancorp and Brookline Bancorp have settled on Beacon as the brand for their merged company. The holding company will be styled Beacon Financial, and its subsidiary as Beacon Bank & Trust. The Berkshire and Brookline combination, which the companies have advertised as a merger of equals, is set to close in the third quarter. When the two Boston-based institutions announced the $1.1 billion, all-stock deal in December, they indicated they would choose a new name for the consolidated company. "The Beacon Bank name reflects our desire to be a reliable guide in financial decision-making, helping clients reach their goals with clarity, confidence, and trust," Brookline CEO Paul Perrault said Wednesday in a press release. Perrault will serve as Beacon Financial's CEO. "Our new name honors the legacy of Berkshire and Brookline while looking toward a bright and ambitious future." Berkshire Hills Chairman David Brunelle, who will chair the merged company, said in the press release. "We look forward to our new company delivering the enhanced capabilities that come from the combined institution's scale and operational strength." The merged company is expected to begin operations with $24 billion of assets and a footprint stretching from Massachusetts south into New York's lower Hudson Valley. The Beacon name figures to have particular resonance in Boston, where the Beacon Hill neighborhood has been a landmark since colonial days. Berkshire Chief Communication and Sustainability Officer Gary Levante told American Banker in an email Thursday that the companies considered "multiple" prospective names and reviewed input from stakeholders and focus groups before opting for Beacon. "We wanted a name that conveyed guidance, strength, and the promise of stability, core principles that the legacy institutions upheld for generations and that are essential to the combined organization," Levante said in the email. The only two U.S. banks that currently use the "Beacon" moniker are based in San Francisco and Mount Pleasant, South Carolina, according to the Federal Deposit Insurance Corp.'s website. Both of those institutions have less than $1 billion of assets. Last month, in a conference call with analysts, Brookline's Perrault said he was hopeful the merger with Berkshire Hills could close as early as September. Once it's complete, the companies plan to roll out the Beacon brand gradually. Clients will see it initially on statements, in digital banking channels and inside branches. The full transition is expected to occur in the first quarter of 2026, alongside the systems integration. "The official rollout of the Beacon Bank brand will be in early 2026 as we look to minimize client disruption and align the introduction of the new branding with updates to our signage, website, digital platforms, and client materials," Levante stated. "We also expect to launch a public-facing campaign to introduce Beacon Bank to the broader community as we move closer to the planned systems integration early next year." While bank merger-of-equals transactions frequently result in new brands — such as Truist Financial, which emerged from the merger of BB&T Corp. and SunTrust Banks — institutions involved in many recent mergers of equals opted to retain an existing brand. Burke & Herbert survived after Alexandria, Virginia-based Burke & Herbert Financial merged with Summit Financial Group in Moorefield, West Virginia, in May 2024. Similarly, the Orrstown Financial Services and Orrstown Bank names were kept after Harrisburg, Pennsylvania-based Orrstown merged with Codorus Valley Bancorp in York, Pennsylvania, in July 2024. The $12 billion-asset Berkshire announced second-quarter earnings of $30.4 million on July 24, up 27% year over year. Brookline, with assets of $11.6 billion, reported a quarterly profit of $22 million, up 34% from the second quarter of 2024.
Yahoo
23-07-2025
- Business
- Yahoo
Here's Why Aristotle Small Cap Equity Strategy Sold Berkshire Hills Bancorp (BHLB)
Aristotle Capital Boston, LLC, an investment advisor, released its 'Small Cap Equity Strategy' second quarter 2025 investor letter. A copy of the letter can be downloaded here. The second quarter started with a risk-off environment from the previous quarter, but later regained momentum driven by broad-based elements. In the second quarter, the strategy delivered a return of 3.25% net of fees (3.41% gross of fees) underperforming the 8.50% total return of the Russell 2000 Index. For more information on the fund's best picks in 2025, please check its top five holdings. In its second quarter 2025 investor letter, Aristotle Capital Small Cap Equity Strategy highlighted stocks such as Berkshire Hills Bancorp, Inc. (NYSE:BHLB). Berkshire Hills Bancorp, Inc. (NYSE:BHLB) is a bank holding company for Berkshire Bank. The one-month return of Berkshire Hills Bancorp, Inc. (NYSE:BHLB) was 7.26%, and its shares lost 3.33% of their value over the last 52 weeks. On July 22, 2025, Berkshire Hills Bancorp, Inc. (NYSE:BHLB) stock closed at $26.43 per share, with a market capitalization of $1.224 billion. Aristotle Capital Small Cap Equity Strategy stated the following regarding Berkshire Hills Bancorp, Inc. (NYSE:BHLB) in its second quarter 2025 investor letter: "Berkshire Hills Bancorp, Inc. (NYSE:BHLB), is a regional bank primarily serving the NY and New England area. The company announced a merger of equals with Brookline Bancorp. After re-underwriting the combined organization, we chose to exit our position as we were not comfortable with the new management team, nor with the significantly increased loan to deposit ratio." Close up of a smart-phone displaying a bank's online banking platform. Berkshire Hills Bancorp, Inc. (NYSE:BHLB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held Berkshire Hills Bancorp, Inc. (NYSE:BHLB) at the end of the first quarter, which was 28 in the previous quarter. While we acknowledge the potential of Berkshire Hills Bancorp, Inc. (NYSE:BHLB) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
22-07-2025
- Business
- Yahoo
Brookline Bancorp (BRKL) Reports Q2: Everything You Need To Know Ahead Of Earnings
Regional banking company Brookline Bancorp (NASDAQ:BRKL) will be reporting earnings this Wednesday afternoon. Here's what you need to know. Brookline Bancorp missed analysts' revenue expectations by 2.4% last quarter, reporting revenues of $91.49 million, up 4.1% year on year. It was a softer quarter for the company, with a miss of analysts' net interest income estimates and a slight miss of analysts' EPS estimates. Is Brookline Bancorp a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Brookline Bancorp's revenue to grow 10.5% year on year to $95.43 million, a reversal from the 5.6% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.25 per share. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Brookline Bancorp has missed Wall Street's revenue estimates six times over the last two years. Looking at Brookline Bancorp's peers in the regional banks segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Texas Capital Bank delivered year-on-year revenue growth of 15.2%, beating analysts' expectations by 2.7%, and Nicolet Bankshares reported revenues up 12.7%, topping estimates by 4.4%. Texas Capital Bank traded up 4.8% following the results while Nicolet Bankshares was also up 7.8%. Read our full analysis of Texas Capital Bank's results here and Nicolet Bankshares's results here. There has been positive sentiment among investors in the regional banks segment, with share prices up 7.8% on average over the last month. Brookline Bancorp is up 7.2% during the same time and is heading into earnings with an average analyst price target of $14.25 (compared to the current share price of $11.05). When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we've found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Sign in to access your portfolio
Yahoo
25-06-2025
- Business
- Yahoo
BHLB Q1 Deep Dive: Margin Expansion and Merger Integration Dominate Outlook
Regional bank holding company Berkshire Hills Bancorp (NYSE:BHLB) reported revenue ahead of Wall Street's expectations in Q1 CY2025, with sales up 4.7% year on year to $110.4 million. Its non-GAAP profit of $0.60 per share was 14.3% above analysts' consensus estimates. Is now the time to buy BHLB? Find out in our full research report (it's free). Revenue: $110.4 million vs analyst estimates of $108.8 million (4.7% year-on-year growth, 1.5% beat) Adjusted EPS: $0.60 vs analyst estimates of $0.53 (14.3% beat) Market Capitalization: $1.13 billion Berkshire Hills Bancorp delivered a quarter that met positive market expectations, with management attributing results to a combination of net interest income growth, disciplined credit management, and ongoing cost reductions. CEO Nitin Mhatre emphasized, 'Our rigorous expense optimization initiatives continue to drive expenses lower,' pointing to broad-based reductions across operating lines. The bank's improved asset quality, highlighted by nonperforming loans at their lowest level in two decades, also played a role. Management noted that the digital deposit initiative gained momentum, helping to diversify funding sources while the sale of nonstrategic loan portfolios further reduced risk exposure. Looking ahead, Berkshire Hills Bancorp's guidance is shaped by the pending merger with Brookline Bancorp and an uncertain economic environment, particularly around tariffs and policy volatility. Management is focused on maintaining expense discipline, digital deposit growth, and employee retention, while actively monitoring potential impacts from macroeconomic headwinds. CEO Nitin Mhatre cautioned, 'It's still very early, and the fluidity of the news from Washington makes it difficult to predict the potential outcomes at this point,' but reiterated the company's readiness to adapt strategy as needed. Integration planning for the merger is on track, with regulatory and shareholder approvals targeted in the coming quarters. Management identified disciplined expense control, deposit growth from digital channels, and balance sheet de-risking as core contributors to the quarter's performance and future positioning. Expense discipline delivers leverage: The ongoing focus on cost optimization led to a 4% decline in operating expenses from the prior quarter and an 11% improvement in positive operating leverage year-over-year. Management cited this as key to margin expansion and earnings resilience. Digital deposit initiative gains traction: The bank's recently launched digital deposit platform delivered $75 million in new deposits, with about 20% of new client relationships now sourced through digital channels. Management views these channels as critical for future growth and competitive positioning. Balance sheet de-risking completed: The sale of the remaining Upstart loan book and reduction of nonstrategic runoff portfolios by 76% year-over-year lowered risk exposure and improved asset quality. The company now holds loss reserves at about 500% of total nonperforming loans. Asset quality at historic strength: Net charge-offs remained below long-term averages, and nonperforming loans as a percentage of total loans reached their lowest level in nearly twenty years. Management credits a collaborative risk culture for this improvement. Merger integration moves forward: Work on the merger of equals with Brookline Bancorp is proceeding on or ahead of schedule. Regulatory applications have been filed, and shareholder approval is targeted for the next quarter, with management expecting meaningful profitability improvements from the combined entity. Berkshire Hills Bancorp's outlook centers on merger execution, navigating economic uncertainty, and extending digital initiatives to drive efficiency and growth. Merger with Brookline Bancorp: The pending combination is expected to improve scale and profitability, with management highlighting estimated 23% accretion to consensus earnings in 2026. Integration efforts are focused on retention of key employees and maintaining operational stability through the transition period. Expense management focus: The company plans to sustain expense discipline, aiming to keep operating costs stable despite inflationary pressures and integration costs. CFO Brett Brbovic indicated that the current expense run rate should remain consistent as merger planning continues. Economic and policy headwinds: Management remains cautious around the broader economic environment, noting that client behavior is mixed, with some commercial customers increasing inventories and others holding back. Tariffs and policy changes could impact loan demand and deposit flows, prompting close monitoring and readiness to adapt strategy. In the upcoming quarters, the StockStory team will be monitoring (1) progress on the Brookline Bancorp merger, especially regulatory and shareholder approvals; (2) continued growth in digital deposit channels and the impact on funding mix; and (3) the company's ability to preserve asset quality and expense discipline amid economic and policy fluctuations. Successful integration and adaptation to external headwinds will be key signposts. Berkshire Hills Bancorp currently trades at $24.62, up from $24.29 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
Yahoo
17-06-2025
- Business
- Yahoo
Brookline Bancorp (BRKL): Buy, Sell, or Hold Post Q1 Earnings?
Over the last six months, Brookline Bancorp's shares have sunk to $10.69, producing a disappointing 11.8% loss while the S&P 500 was flat. This was partly due to its softer quarterly results and might have investors contemplating their next move. Is now the time to buy Brookline Bancorp, or should you be careful about including it in your portfolio? Get the full breakdown from our expert analysts, it's free. Even with the cheaper entry price, we don't have much confidence in Brookline Bancorp. Here are three reasons why there are better opportunities than BRKL and a stock we'd rather own. While banks generate revenue from multiple sources, investors view net interest income as the cornerstone - its predictable, recurring characteristics stand in sharp contrast to the volatility of non-interest income. Brookline Bancorp's net interest income has grown at a 5.7% annualized rate over the last four years, worse than the broader bank industry. Its growth was driven by an increase in its outstanding loans as its net interest margin, which represents how much a bank earns in relation to its outstanding loan book, was flat throughout that period. Net interest margin represents how much a bank earns in relation to its outstanding loans. It's one of the most important metrics to track because it shows how a bank's loans are performing and whether it has the ability to command higher premiums for its services. Over the past two years, Brookline Bancorp's net interest margin averaged 3.1%. Its margin also contracted by 47.7 basis points (100 basis points = 1 percentage point) over that period. This decline was a headwind for its net interest income. While prevailing rates are a major determinant of net interest margin changes over time, the decline could mean Brookline Bancorp either faced competition for loans and deposits or experienced a negative mix shift in its balance sheet composition. Although long-term earnings trends give us the big picture, we like to analyze EPS over a shorter period to see if we are missing a change in the business. Sadly for Brookline Bancorp, its EPS declined by 20.9% annually over the last two years while its revenue grew by 1%. This tells us the company became less profitable on a per-share basis as it expanded. Brookline Bancorp isn't a terrible business, but it doesn't pass our bar. Following the recent decline, the stock trades at 0.5× forward P/B (or $10.69 per share). While this valuation is fair, the upside isn't great compared to the potential downside. We're fairly confident there are better investments elsewhere. Let us point you toward one of our top digital advertising picks. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
