Brookline Bancorp, Inc. (NASDAQ:BRKL) Q1 2018 Earnings Conference Call - Preliminary Transcript
Apr 26, 2018 • 01:30 pm ET
Good afternoon, and welcome to the Brookline Bancorp, Inc.'s First Quarter 2018 Earnings Release Call. (Operator Instructions). Please note, this event is being recorded. I would now like to turn the conference over to Marissa Frerk. Please go ahead. Thank you, Brandon. Good afternoon, everyone, and welcome to Brookline Bancorp, Inc.'s First Quarter 2018 Earnings Conference Call. Yesterday, we issued our earnings release, which is available on the Investor Relations page of our website, brooklinebancorp.com, and has been filed with the SEC. This afternoon's call will be hosted by Brookline Bancorp's executive team, Paul Perrault and Carl Carlson.
Before we begin, please note, this call may contain forward-looking statements with respect to the financial condition, results of operations and business of Brookline Bancorp. Actual results may differ from these forward-looking statements. Factors that may cause actual results to differ include those identified in our Annual Report on Form 10-K, our most recently filed 10-Q and our earnings press release. Brookline Bancorp cautions you against unduly relying upon any forward-looking statements and disclaims any intent to update publicly any forward-looking statement, whether in response to new information, future events or otherwise. Any references made during this presentation to non-GAAP measures are only made to assist you in understanding Brookline Bancorp's results and performance trends, and should not be relied on as financial measures of actual results or future predictions. For a comparison and reconciliation to GAAP earnings, please see our earnings release.
And now I'm pleased to introduce Brookline Bancorp's President and CEO, Paul Perrault.
Paul A. Perrault
Thanks, Marissa. Good afternoon, all. I'm accompanied today by our Chief Financial Officer, Carl Carlson, who will walk you through our quarterly financial results following my comments.
I'm proud to say that we had a very productive first quarter. We closed the acquisition of First Commons Bank on March 1. At that time, First Commons was merged into our lead subsidiary, Brookline Bank, adding $260 million in loans and $270 million of deposits.
We are pleased to report another quarter of record earnings due to strong organic loan and deposit growth; margin expansion; improved asset quality; and, of course, the lower tax rate. Yesterday, our Board of Directors approved an 11.1% increase in our quarterly dividend. We reported earnings of $18.6 million or $0.24 per share for the first quarter of 2018. Excluding the impact of securities gains and merger charges, net income would have been $20 million or $0.26 per share. Loan balances grew $384 million in the quarter, as I mentioned, $262 million attributable to the First Commons acquisition and $122 million organically.
Deposits grew by $320 million, $274 million from the First Commons acquisition and $46 million organically. We have a great group of dedicated employees serving our customers, making Brookline Bancorp one of the region's leading commercial banking enterprises.
I will now turn you over to Carl, who will review the company's first quarter results in more detail.
Carl M. Carlson
Thank you, Paul. As Paul mentioned, our loans grew organically $122 million or 8.5% on