FBR Capital Reiterates a 'Market Perform' on Brookline Bancorp (BRKL); Deal Leverages Capital, but at a Cost

FBR Capital reiterates a 'Market Perform' on Brookline Bancorp (NASDAQ: BRKL), PT lowered from $11 to $10.50.

FBR analyst says, "Brookline had a strong 1Q11, particularly in terms of loan and deposit growth, but shares traded off given the price paid for Bancorp Rhode Island (BARI), and associated tangible book value dilution. While BARI provides Brookline with low cost deposits, a commercial business mix, and improved geographic reach, the 25% earnings accretion was not enough to make shares look inexpensive now that the majority of its excess capital is deployed and BRKL is valued increasingly off of earnings. We reiterate our 2011 operating EPS estimate of $0.54 and raise our 2012 estimate to $0.70 (from $0.58) to reflect earnings accretion from the BARI transaction closing in 4Q11."

For more ratings news on Brookline Bancorp click here and for the rating history of Brookline Bancorp click here.

Shares of Brookline Bancorp closed at $9.30 yesterday.

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