DB:BB3

Stock Analysis Report

Brookline Bancorp

Executive Summary

Brookline Bancorp, Inc. operates as the holding company for Brookline Bank, Bank Rhode Island, First Ipswich Bank, and Brookline Securities Corp that provide commercial, business, and retail banking services to corporate, municipal, and retail customers in the United States.


Snowflake Analysis

Flawless balance sheet with proven track record.


Similar Companies

Share Price & News

How has Brookline Bancorp's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BB3 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.1%

BB3

-0.3%

DE Banks

-0.9%

DE Market


1 Year Return

0.3%

BB3

0.9%

DE Banks

12.8%

DE Market

Return vs Industry: BB3 matched the German Banks industry which returned 0.9% over the past year.

Return vs Market: BB3 underperformed the German Market which returned 12.8% over the past year.


Shareholder returns

BB3IndustryMarket
7 Day-2.1%-0.3%-0.9%
30 Day-1.4%17.1%-0.4%
90 Day-0.7%19.3%2.3%
1 Year3.3%0.3%4.2%0.9%16.3%12.8%
3 Year1.2%-6.4%-2.5%-7.4%15.8%5.7%
5 Year88.8%64.1%-3.9%-27.8%19.7%3.3%

Price Volatility Vs. Market

How volatile is Brookline Bancorp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Brookline Bancorp undervalued compared to its fair value and its price relative to the market?

15.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BB3 (€14.2) is trading below our estimate of fair value (€16.7)

Significantly Below Fair Value: BB3 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: BB3 is good value based on its PE Ratio (14x) compared to the Banks industry average (17.7x).

PE vs Market: BB3 is good value based on its PE Ratio (14x) compared to the German market (20.8x).


Price to Earnings Growth Ratio

PEG Ratio: BB3 is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: BB3 is overvalued based on its PB Ratio (1.3x) compared to the DE Banks industry average (0.9x).


Next Steps

Future Growth

How is Brookline Bancorp forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

7.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BB3's forecast earnings growth (7.4% per year) is above the savings rate (-0.4%).

Earnings vs Market: BB3's earnings (7.4% per year) are forecast to grow slower than the German market (13% per year).

High Growth Earnings: BB3's earnings are forecast to grow, but not significantly.

Revenue vs Market: BB3's revenue (4.1% per year) is forecast to grow slower than the German market (5.2% per year).

High Growth Revenue: BB3's revenue (4.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BB3's Return on Equity is forecast to be low in 3 years time (9.8%).


Next Steps

Past Performance

How has Brookline Bancorp performed over the past 5 years?

15.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BB3 has high quality earnings.

Growing Profit Margin: BB3's current net profit margins (32.1%) are higher than last year (31%).


Past Earnings Growth Analysis

Earnings Trend: BB3's earnings have grown by 15.1% per year over the past 5 years.

Accelerating Growth: BB3's earnings growth over the past year (5.6%) is below its 5-year average (15.1% per year).

Earnings vs Industry: BB3 earnings growth over the past year (5.6%) exceeded the Banks industry -7%.


Return on Equity

High ROE: BB3's Return on Equity (9.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Brookline Bancorp's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: BB3 has a low level of unsold assets or inventory.

Debt Coverage by Assets: BB3's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: BB3's level of assets compared to its equity is low.

Allowance for Bad Loans: BB3 has a sufficient allowance for bad loans.

Low Risk Liabilities: BB3's liabilities are made up of primarily low risk sources of funding.

Loan Level: BB3 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: BB3's loans are broadly funded by customer deposits.

Level of Bad Loans: BB3 has an appropriate level of bad loans (0.29%)


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Dividend

What is Brookline Bancorp's current dividend yield, its reliability and sustainability?

2.98%

Current Dividend Yield


Dividend Yield vs Market

company3.0%marketbottom25%1.3%markettop25%3.6%industryaverage2.7%forecastin3Years3.0%

Current dividend yield vs market & industry

Notable Dividend: BB3's dividend (2.98%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: BB3's dividend (2.98%) is low compared to the top 25% of dividend payers in the German market (3.63%).


Stability and Growth of Payments

Stable Dividend: BB3's dividend payments have been volatile in the past 10 years.

Growing Dividend: BB3's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (40.9%), BB3's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BB3's dividends in 3 years are forecast to be well covered by earnings (36.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.4yrs

Average management tenure


CEO

Paul Perrault (67yo)

10.8yrs

Tenure

US$2,164,595

Compensation

Mr. Paul A. Perrault has been the Chief Executive Officer and President of Brookline BanCorp, Inc. since April 16, 2009 and March 16, 2009 respectively. From 2009 through 2016, Mr. Perrault served as Chief ...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD2.16M) is above average for companies of similar size in the German market ($USD1.52M).

Compensation vs Earnings: Paul's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Paul Perrault
President10.8yrsUS$2.16m0.53% $6.0m
Carl Carlson
Chief Financial Officer5.8yrsUS$804.16k0.097% $1.1m
M. Rose
Chief Credit Officer10.5yrsUS$683.64k0.082% $927.7k
Darryl Fess
President & CEO of Brookline Bank3.4yrsUS$687.25k0.047% $535.7k
Mark Meiklejohn
President0yrsUS$673.22k0.065% $738.0k
James Cosman
Chief Operations Officer8.4yrsUS$584.57k0.049% $554.3k
Michael McCurdy
Chief Risk Officer0yrsUS$514.94k0.027% $300.1k
Sandra Jenkins
Chief Human Resources Officer4.6yrsno data0.032% $362.2k
William MacKenzie
Senior Vice President of Commercial Lending14yrsno datano data
Michael Fanger
CEO of Eastern Funding LLC0yrsUS$538.47kno data

8.4yrs

Average Tenure

57yo

Average Age

Experienced Management: BB3's management team is seasoned and experienced (8.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Paul Perrault
President10.8yrsUS$2.16m0.53% $6.0m
Mark Meiklejohn
President0yrsUS$673.22k0.065% $738.0k
Michael Fanger
CEO of Eastern Funding LLC0yrsUS$538.47kno data
James McCarthy
Chairman3.3yrsno data0.015% $170.4k
Charles Peck
Director25.1yrsUS$110.20k0.30% $3.4m
Peter Wilde
Independent Director27.1yrsUS$120.20k0.21% $2.4m
Joseph Slotnik
Chairman of the Board8.8yrsUS$130.20k0.23% $2.6m
John Hall
Independent Director37.1yrsUS$110.20k0.26% $3.0m
Thomas Hollister
Independent Director10.8yrsUS$120.20k0.039% $442.9k
Bogdan Nowak
Independent Director8.1yrsUS$115.20k0.12% $1.4m

10.8yrs

Average Tenure

65.5yo

Average Age

Experienced Board: BB3's board of directors are seasoned and experienced ( 10.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Brookline Bancorp, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Brookline Bancorp, Inc.
  • Ticker: BB3
  • Exchange: DB
  • Founded: 1871
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$1.229b
  • Listing Market Cap: US$1.131b
  • Shares outstanding: 79.69m
  • Website: https://www.brooklinebancorp.com

Number of Employees


Location

  • Brookline Bancorp, Inc.
  • 131 Clarendon Street
  • Boston
  • Massachusetts
  • 2116
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BRKLNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMar 1998
BB3DB (Deutsche Boerse AG)YesCommon StockDEEURMar 1998

Biography

Brookline Bancorp, Inc. operates as the holding company for Brookline Bank, Bank Rhode Island, First Ipswich Bank, and Brookline Securities Corp that provide commercial, business, and retail banking services to corporate, municipal, and retail customers in the United States. Its deposit products include non-interest-bearing demand checking accounts, NOW accounts, savings accounts, and money market accounts, as well as commercial, municipal, and retail deposits. The company’s loan portfolio primarily comprises first mortgage loans secured by commercial, multi-family, and residential real estate properties; loans to business entities comprising commercial lines of credit; loans to condominium associations; financing for construction and development projects; home equity and other consumer loans; and commercial loans and leases to small and midsized businesses. It also provides term loans, letters of credit, cash management, investment advisory, and online and mobile banking services, as well as invests in debt and equity securities. As of December 31, 2018, the company operated 51 full-service banking offices in greater Boston, the north shore of Massachusetts, and Rhode Island. Brookline Bancorp, Inc. was founded in 1871 and is headquartered in Boston, Massachusetts. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 23:11
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.