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Brookline Bancorp , Inc. (NASDAQ:BRKL), a federally chartered savings institution with a market capitalization of $935.6 million, announced the approval of a significant merger proposal during a special meeting of its stockholders. The meeting, held virtually on May 21, 2025, saw shareholders vote in favor of a merger agreement with Berkshire Hills (NYSE:BHLB) Bancorp, Inc., which was initially dated December 16, 2024. According to InvestingPro analysis, BRKL currently trades at $10.46 per share and appears undervalued based on its Fair Value assessment.
The approved proposal entails the merger of Commerce Acquisition Sub, Inc. into Brookline Bancorp, with Brookline surviving the merger. Subsequently, Brookline will merge into Berkshire, with Berkshire emerging as the surviving entity. Known collectively as the Mergers, this strategic move is aimed at consolidating the companies’ operations. The merger comes at a time when Brookline demonstrates strong fundamentals, maintaining dividend payments for 28 consecutive years and offering a notable 5.11% dividend yield.
Despite the approval of the merger, the non-binding advisory proposal related to executive compensation in connection with the Mergers did not receive the same level of support and was not approved. However, the rejection of this proposal does not affect the completion of the Mergers.
The special meeting turnout was substantial, with stockholders holding 65,314,597 shares present, either in person or by proxy, satisfying the quorum requirement. The final vote for the merger proposal was overwhelmingly positive, with 64,082,857 votes for, 820,402 against, and 411,338 abstaining. No broker non-votes were recorded. The advisory vote on executive compensation saw 25,069,153 votes for, 40,131,555 against, and 113,889 abstentions.
The completion of the merger is a significant step for Brookline Bancorp, which operates under the organization name 02 Finance, and is based in Boston, Massachusetts. The company’s common stock is traded on the Nasdaq Global Select Market under the symbol BRKL. Trading at a P/E ratio of 12.84, InvestingPro analysis reveals multiple positive indicators, including expected net income growth and sustained profitability. For detailed merger analysis and comprehensive financial metrics, investors can access the full Pro Research Report, available exclusively to InvestingPro subscribers.
This news is based on a press release statement from the SEC filing.
In other recent news, Brookline Bancorp reported its Q1 2025 earnings, revealing a slight miss on both earnings per share (EPS) and revenue forecasts. The company reported an EPS of $0.21, falling short of the anticipated $0.23, and revenue came in at $91.49 million, just below the forecast of $92.71 million. Despite these minor misses, Brookline Bancorp is moving forward with its strategic merger with Berkshire Hills Bancorp, expected to be completed in the second half of 2025. The company’s net interest margin improved by 10 basis points to 3.22%, indicating better profitability. Customer deposits increased, reflecting strong consumer trust. Analysts from firms like Piper Sandler have shown interest in the company’s strategic initiatives, including its cautious approach to credit administration and hiring practices. CEO Paul Perl and CFO Karl Carlson emphasized the company’s focus on prudent management and strategic growth during the earnings call. Brookline Bancorp is also preparing for a core banking platform conversion slated for February 2026, which is part of its ongoing strategic initiatives.
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