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5 Banks Stocks Showing 'Real' Earnings Growth

1. Brookline Bancorp
Shares of Brookline Bancorp (BRKL) of Brookline, Mass., closed at $8.48 Friday, returning 3% year-to-date, following 19% decline during 2011.

The shares trade for 1.3 times tangible book value, and for 13 times the consensus 2013 EPS estimate of 67 cents.

With a quarterly payout of 8.5 cents, the shares have a dividend yield of 4.01%.

Brookline Bancorp had $5.1 billion in total assets as of Sept. 30. The company's pre-provision net revenue grew by 58% year-over-year to $19.8 million in the third quarter, as its net interest income increase by 68% to $46.4 million, mainly because of the acquisition of Bancorp of Rhode Island in January. The net interest margin widened to 4.00% in the third quarter, from 3.68% a year earlier.

The company's noninterest income increased to $3.8 million in the third quarter from $928 million a year earlier. Noninterest expense nearly doubled, to $30.4 million.

Brookline reported third-quarter earnings of $11.4 million, or 16 cents a share, increasing from $6.3 million, or 11 cents a share, a year earlier. The third-quarter ROA was 0.90% and the return on average equity was 7.53%.

KBW analyst Damon DelMonte rates Brookline Bancorp "Market Perform," with a $9.00 price target, and said on Oct. 24 after the earnings announcement that "BRKL posted a solid quarter as the bank's bottom line benefited mainly from liquidity deployment into loans and securities and a lower tax rate from federal tax credits, both of which were somewhat offset by higher expenses across the board."

DelMonte added that the company's core net interest margin "expansion was closer to 5bps as the reported NIM benefited from 14bps, or $1.4mm, of yield adjustments on the bank's acquired loan portfolio" from the Bancorp of Rhode Island acquisition.

DelMonte estimates that Brookline Bancorp will earn 65 cents a share during 2013.

BRKL Chart BRKL data by YCharts

Interested in more on Brookline Bancorp? See TheStreet Ratings' report card for this stock.

-- Written by Philip van Doorn in Jupiter, Fla.

>Contact by Email.

Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.
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