Exhibit 99.1
Boston Private Financial Holdings, Inc. Reports Third Quarter 2011 Results
Third Quarter 2011 Highlights:
| |
| • | Continued profitability: Q3 2011 profitability of $0.14 per diluted share, following Q2 2011 diluted EPS of $0.17 and a per share loss of $0.10 in Q3 2010. Pre-tax, pre-provision earnings rose to $20.7 million in Q3 2011 from $16.6 million in Q2 2011 and $12.4 million in Q3 2010. |
| |
| • | Improved balance sheet profile: Loan growth of 2% on a linked quarter basis. Non-Performing Loans down 8% vs. Q2 2011, and down 49% year-over-year. TCE/TA up 26 basis points vs. Q2 2011, and up 34 basis points year-over-year. |
| |
| • | Stable revenue stream: Revenue down 2% on a linked quarter basis, up 4% year-over-year. Total Fees and Other Income, which was 41% of Total Revenue in Q3 2011, was down 3% on a linked quarter basis, up 15% year-over-year. Net Interest Margin of 3.26%, down 3 basis points linked quarter, and 16 basis points year-over-year. |
| |
| • | Expense control: Operating Expenses (excluding restructuring charges) decreased 5% on a linked quarter basis, and declined 9% year-over-year. |
Boston, MA - October 25, 2011 - Boston Private Financial Holdings, Inc. (NASDAQ: BPFH) (the "Company" or "BPFH") today reported third quarter 2011 GAAP Net Income Attributable to the Common Stockholders of $11.5 million, compared to GAAP Net Income Attributable to the Common Stockholders of $14.3 million in the second quarter of 2011. BPFH reported third quarter diluted earnings per share of $0.14 compared to diluted earnings per share of $0.17 in the second quarter of 2011.
"In the third quarter we continued to see improvement in the overall health of our Company," said CEO and President Clayton G. Deutsch. "These results show continued evidence that our program to return the Company to sustainable and acceptable profitability is unfolding as planned. Since my arrival last August, we asserted a restructuring plan that returned the Company to profitability in the second quarter of 2011, and our third quarter results show ongoing progress. We continue to focus on improving our credit quality, accumulating capital, carefully managing growth while reducing risk and improving the core performance of our Wealth Management and Private Banking businesses."
"In a difficult environment, we witnessed loan growth across our commercial and residential lending businesses, relatively stable Net Interest Income and stable fee-based revenues," said Mr. Deutsch. "We reduced Operating Expenses and closely managed credit which resulted in a year-over-year reduction in the Provision for Loan Losses. We continue to believe that our NIM defense is strong and that our Wealth Management and Private Banking model has the intrinsics to outperform core banking in a prolonged low interest rate environment."
Diversified Revenue Stream Holds Steady
Net Interest Income in the third quarter was $45.1 million, down 2% from $46.0 million in the second quarter 2011 and down 3% from $46.4 million in the third quarter of 2010. Fees and Other Income decreased to $31.4 million, down 3% from $32.3 million in the second quarter of 2011 and up 15% from $27.3 million in the third quarter of 2010.
Total Assets Under Management/Advisory ("AUM") decreased to $18.2 billion in the third quarter, down 10% from $20.2 billion in the second quarter 2011 and down 2% from $18.6 billion in the third quarter of 2010, primarily due to market declines. The Company experienced third quarter 2011 net AUM outflows of $223 million, as compared to $150 million of net outflows in the prior quarter and $2 million of net inflows in the third quarter of 2010.
Operating Expenses Decline
Operating Expenses (excluding restructuring costs of $1.1 million) in the third quarter were $55.4 million, down 5% from $58.2 million (excluding restructuring costs of $4.3 million) on a linked quarter basis. On a year-over-year basis, Operating Expenses were down 9% from $61.0 million.
"I'm heartened by the progress we've made in taking cost out of the Company and improving operating efficiencies overall," said Mr. Deutsch. "However, we will not be satisfied until we meet our previously announced targeted reduction of $25 million in costs. Our Bank post-merger consolidations and conversions will roll through the fourth quarter of 2011, and the first and second quarters of 2012. We are on track with our consolidation plan and associated savings."
Asset Quality Continues to Improve
Provision for Loan Losses in the third quarter was $4.5 million, up from a recovery of ($2.2) million in the second quarter and down 86% from $32.1 million year-over-year.
Non-Performing Loans ("NPLs") declined for the second consecutive quarter. In the third quarter of 2011 NPLs were $73.4 million, down 8% from $79.9 million on a linked quarter basis and down 49% from $143.1 million year-over-year. As a percentage of Total Loans, NPLs were 1.64% in the third quarter of 2011, down 17 basis points from 1.81% in the second quarter of 2011.
Additional credit metrics are listed below on a linked quarter and year-over-year basis:
|
| | | | | | | | | | | |
| (In millions) | September 30,
2011 | | June 30,
2011 | | September 30,
2010 |
| Total Criticized Loans | $ | 355.4 |
| | $ | 339.8 |
| | $ | 397.4 |
|
| Total Loans 30-89 Days Past Due and Accruing | $ | 20.9 |
| | $ | 6.5 |
| | $ | 16.9 |
|
| Total Net Loans Charged-off/ (Recovered) | $ | 4.5 |
| | $ | (0.7 | ) | | $ | 11.1 |
|
| Allowance for Loan Losses/Total Loans | 2.20 | % | | 2.24 | % | | 2.21 | % |
Capital Accumulation Continues
"Our Tangible Common Equity to Tangible Assets ratio increased 26 basis points to 7.14% on a linked quarter basis," said David J. Kaye, Chief Financial Officer. "We remain comfortable with our capital position and will continue to be in capital accumulation mode in the near term."
Additional capital ratios are listed below on a linked quarter and year-over-year basis:
|
| | | | | | | | |
| | September 30,
2011 | | June 30,
2011 | | September 30,
2010 |
| Total Risk-Based Capital * | 15.47 | % | | 15.18 | % | | 14.92 | % |
| Tier I Risk-Based Capital * | 12.54 | % | | 12.12 | % | | 13.58 | % |
| Tier I Leverage Capital * | 8.43 | % | | 8.14 | % | | 9.70 | % |
| TCE/TA | 7.14 | % | | 6.88 | % | | 6.80 | % |
| TCE/Risk Weighted Assets * | 10.39 | % | | 10.22 | % | | 9.61 | % |
*September 30, 2011 data is shown on a pro-forma basis.
"Our third quarter results speak to continued progress with our overall program to deliver acceptable returns," said Mr. Deutsch. "Our third quarter annualized ROE of 8.6%, while a vast improvement, is still short of our declared goal of a consistent 12% ROE for our shareholders. We remain committed to attaining this threshold by 2013," he concluded.
Dividend Payments
Concurrent with the release of the third quarter 2011 earnings, the Board of Directors of the Company declared a cash dividend to stockholders of $0.01 per share. The record date for this dividend is November 16, 2011, and the payment date is November 30, 2011.
Non-GAAP Financial Measures
The Company uses certain non-GAAP financial measures, such as the TCE/TA and TCE/RWA ratios, to provide information for investors to effectively analyze financial trends of ongoing business activities, and to enhance comparability with peers across the financial sector. A detailed reconciliation table of the Company's GAAP to the non-GAAP measures is attached.
Conference Call
Management will hold a conference call at 8:00 a.m. Eastern Time on Wednesday, October 26, to discuss the financial results in more detail. To access the call:
Dial In #: (866) 843-0890
International Dial In #: (412) 317-9250
Elite Entry Number: 2046460
Replay Information:
Available from October 26 at 12 noon until November 2
Dial In #: (877) 344-7529
International Dial In #: (412) 317-0088
Conference Number: 10005064
The call will be simultaneously webcast and may be accessed on www.bostonprivate.com.
Boston Private Financial Holdings, Inc.
Boston Private Financial Holdings, Inc. is a national financial services organization with Wealth Management and Private Banking affiliates in Boston, New York, Philadelphia, Los Angeles, San Francisco and Seattle. The Company has a $6 billion Private Banking balance sheet, and manages over $18 billion of client assets.
The Company positions its affiliates to serve the high net worth marketplace with high quality products and services of unique appeal to private clients. The Company also provides strategic oversight and access to resources, both financial and intellectual, to support affiliate management, marketing, compliance and legal activities. (NASDAQ: BPFH)
For more information about BPFH, visit the Company's website at www.bostonprivate.com.
Note to Editors:
Boston Private Financial Holdings, Inc. is not to be confused with Boston Private Bank & Trust Company. Boston Private Bank & Trust Company is a locally operated and wholly-owned subsidiary of BPFH. The information reported in this press release is related to the performance and results of BPFH.
CONTACT:
Jeanne Hess
Assistant Vice President, Investor Relations
Boston Private Financial Holdings, Inc.
(617) 912-3798
jhess@bostonprivate.com
John Hartz
Sloane & Company
857-598-4779
jhartz@sloanepr.com
Statements in this press release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties. These statements include, among others, statements regarding our strategy, evaluations of future interest rate trends and liquidity, prospects for growth in assets, and prospects for overall results over the long term. You should not place undue reliance on our forward-looking statements. You should exercise caution in interpreting and relying on forward-looking statements because they are subject to significant risks, uncertainties and other factors which are, in some cases, beyond the Company's control. Forward-looking statements are based on the current assumptions and beliefs of management and are only expectations of future results. The Company's actual results could differ materially from those projected in the forward-looking statements as a result of, among other factors, changes in assumptions or unanticipated factors adversely affecting the timing, among other matters, of expenses or cost savings relating to or resulting from the consolidation of the Company's banking subsidiaries; adverse conditions in the capital and debt markets and the impact of such conditions on the Company's private banking, investment management and wealth advisory activities; changes in interest rates; competitive pressures from other financial institutions; the effects of a continuing deterioration in general economic conditions on a national basis or in the local markets in which the Company operates, including changes which adversely affect borrowers' ability to service and repay our loans; changes in loan defaults and charge-off rates; changes in the value of securities and other assets, adequacy of loan loss reserves, or decreases in deposit levels necessitating increased borrowing to fund loans and investments; increasing government regulation, such as the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010; the risk that goodwill and intangibles recorded in the Company's financial statements will become impaired; the risk that the Company's deferred tax asset may not be realized; risks related to the identification and implementation of acquisitions; changes in assumptions used in making such forward-looking statements; and the other risks and uncertainties detailed in the Company's Annual Report on Form 10-K and updated by the Company's Quarterly Reports on Form 10-Q; and other filings submitted to the Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.
Boston Private Financial Holdings, Inc.
Selected Financial Data (Unaudited)
|
| | | | | | | | | | | |
| | September 30, 2011 | | June 30, 2011 | | September 30, 2010 |
| | (In thousands, except share and per share data) |
| Assets: | | | | | |
| Cash and cash equivalents | $ | 330,425 |
| | $ | 472,555 |
| | $ | 371,482 |
|
| Investment securities: | | | | | |
| Available for sale | 848,855 |
| | 793,622 |
| | 736,777 |
|
| Held to maturity | — |
| | — |
| | 3,005 |
|
| Total investment securities | 848,855 |
| | 793,622 |
| | 739,782 |
|
| Loans held for sale | 13,275 |
| | 4,625 |
| | 22,290 |
|
| Total loans | 4,487,719 |
| | 4,409,440 |
| | 4,530,274 |
|
| Less: Allowance for loan losses | 98,759 |
| | 98,742 |
| | 100,010 |
|
| Net loans | 4,388,960 |
| | 4,310,698 |
| | 4,430,264 |
|
| Other real estate owned (“OREO”) | 9,161 |
| | 14,485 |
| | 13,069 |
|
| Stock in Federal Home Loan Banks | 44,248 |
| | 44,785 |
| | 46,393 |
|
| Premises and equipment, net | 28,812 |
| | 27,279 |
| | 26,781 |
|
| Goodwill | 115,038 |
| | 115,038 |
| | 108,696 |
|
| Intangible assets, net | 31,736 |
| | 32,913 |
| | 37,457 |
|
| Fees receivable | 7,998 |
| | 8,481 |
| | 7,338 |
|
| Accrued interest receivable | 16,492 |
| | 16,881 |
| | 18,783 |
|
| Income tax receivable and deferred | 77,886 |
| | 83,163 |
| | 81,414 |
|
| Other assets | 110,423 |
| | 112,253 |
| | 127,517 |
|
| Total assets | $ | 6,023,309 |
| | $ | 6,036,778 |
| | $ | 6,031,266 |
|
| Liabilities: | | | | | |
| Deposits | $ | 4,534,076 |
| | $ | 4,551,319 |
| | $ | 4,492,516 |
|
| Securities sold under agreements to repurchase | 108,294 |
| | 122,448 |
| | 108,575 |
|
| Federal Home Loan Bank borrowings | 527,481 |
| | 523,695 |
| | 584,521 |
|
| Junior subordinated debentures | 188,645 |
| | 188,645 |
| | 193,645 |
|
| Other liabilities | 91,274 |
| | 90,491 |
| | 99,526 |
|
| Total liabilities | 5,449,770 |
| | 5,476,598 |
| | 5,478,783 |
|
| Redeemable Noncontrolling Interests | 21,885 |
| | 21,210 |
| | 18,721 |
|
| The Company’s Stockholders’ Equity: | | | | | |
| Preferred stock, $1.00 par value; authorized: 2,000,000 shares; | | | | | |
| Series B, issued and outstanding (contingently convertible): 401 shares at September 30, 2011, June 30, 2011, and September 30, 2010; liquidation value: $100,000 per share | 58,089 |
| | 58,089 |
| | 58,089 |
|
| Common stock, $1.00 par value; authorized: 170,000,000 shares; issued and outstanding: 78,004,135 shares at September 30, 2011; 77,942,074 shares at June 30, 2011; and 76,592,233 shares at September 30, 2010 | 78,004 |
| | 77,942 |
| | 76,592 |
|
| Additional paid-in capital | 655,165 |
| | 654,297 |
| | 652,832 |
|
| Accumulated deficit | (243,079 | ) | | (254,758 | ) | | (259,196 | ) |
| Accumulated other comprehensive income | 3,475 |
| | 3,400 |
| | 5,445 |
|
| Total stockholders’ equity | 551,654 |
| | 538,970 |
| | 533,762 |
|
| Total liabilities, redeemable noncontrolling interests and stockholders’ equity | $ | 6,023,309 |
| | $ | 6,036,778 |
| | $ | 6,031,266 |
|
Boston Private Financial Holdings, Inc.
Selected Financial Data (Unaudited)
|
| | | | | | | | | | | | | | | | | | | |
| | Three Months Ended | | Nine Months Ended |
| | September 30,
2011 | | June 30,
2011 | | September 30,
2010 | | September 30,
2011 | | September 30,
2010 |
| Interest and dividend income: | (In thousands, except share and per share data) |
| Loans | $ | 53,030 |
| | $ | 54,565 |
| | $ | 58,036 |
| | $ | 160,153 |
| | $ | 173,337 |
|
| Taxable investment securities | 1,493 |
| | 1,391 |
| | 1,613 |
| | 4,263 |
| | 4,742 |
|
| Non-taxable investment securities | 891 |
| | 930 |
| | 1,283 |
| | 2,922 |
| | 3,869 |
|
| Mortgage-backed securities | 1,873 |
| | 1,841 |
| | 1,902 |
| | 5,521 |
| | 6,228 |
|
| Federal funds sold and other | 245 |
| | 283 |
| | 223 |
| | 849 |
| | 943 |
|
| Total interest and dividend income | 57,532 |
| | 59,010 |
| | 63,057 |
| | 173,708 |
| | 189,119 |
|
| Interest expense: | | | | | | | | | |
| Deposits | 5,921 |
| | 6,301 |
| | 8,710 |
| | 18,871 |
| | 28,721 |
|
| Federal Home Loan Bank borrowings | 4,203 |
| | 4,261 |
| | 4,870 |
| | 12,856 |
| | 15,358 |
|
| Junior subordinated debentures | 1,851 |
| | 1,905 |
| | 2,511 |
| | 5,648 |
| | 7,505 |
|
| Repurchase agreements and other short-term borrowings | 485 |
| | 519 |
| | 522 |
| | 1,526 |
| | 1,763 |
|
| Total interest expense | 12,460 |
| | 12,986 |
| | 16,613 |
| | 38,901 |
| | 53,347 |
|
| Net interest income | 45,072 |
| | 46,024 |
| | 46,444 |
| | 134,807 |
| | 135,772 |
|
| Provision/ (credit) for loan losses | 4,500 |
| | (2,190 | ) | | 32,050 |
| | 15,660 |
| | 54,627 |
|
| Net interest income/(loss) after provision for loan losses | 40,572 |
| | 48,214 |
| | 14,394 |
| | 119,147 |
| | 81,145 |
|
| Fees and other income: | | | | | | | | | |
| Investment management and trust fees | 16,161 |
| | 16,337 |
| | 14,443 |
| | 48,581 |
| | 44,674 |
|
| Wealth advisory fees | 10,249 |
| | 10,277 |
| | 9,525 |
| | 30,597 |
| | 28,087 |
|
| Other banking fee income | 1,339 |
| | 1,287 |
| | 1,546 |
| | 3,859 |
| | 3,987 |
|
| Gain on repurchase of debt | — |
| | 1,838 |
| | — |
| | 1,838 |
| | — |
|
| Gain on sale of investments, net | 103 |
| | 168 |
| | 1,147 |
| | 689 |
| | 3,566 |
|
| Gain on sale of loans, net | 386 |
| | 1,125 |
| | 713 |
| | 1,897 |
| | 1,670 |
|
| Gain/(loss) on OREO, net | 3,156 |
| | 844 |
| | (626 | ) | | 4,110 |
| | (2,645 | ) |
| Other | (44 | ) | | 437 |
| | 551 |
| | 2,186 |
| | 1,021 |
|
| Total fees and other income | 31,350 |
| | 32,313 |
| | 27,299 |
| | 93,757 |
| | 80,360 |
|
| Operating expense: | | | | | | | | | |
| Salaries and employee benefits | 34,900 |
| | 35,867 |
| | 38,662 |
| | 107,539 |
| | 107,164 |
|
| Occupancy and equipment | 7,627 |
| | 7,431 |
| | 7,036 |
| | 22,401 |
| | 20,519 |
|
| Professional services | 3,667 |
| | 5,314 |
| | 4,857 |
| | 14,164 |
| | 14,025 |
|
| Marketing and business development | 1,510 |
| | 1,896 |
| | 1,677 |
| | 4,869 |
| | 5,229 |
|
| Contract services and data processing | 1,306 |
| | 1,388 |
| | 1,290 |
| | 4,017 |
| | 4,052 |
|
| Amortization of intangibles | 1,177 |
| | 1,450 |
| | 1,299 |
| | 3,839 |
| | 3,968 |
|
| FDIC insurance | 1,356 |
| | 1,294 |
| | 2,137 |
| | 4,887 |
| | 6,490 |
|
| Restructuring expense | 1,116 |
| | 4,304 |
| | — |
| | 7,402 |
| | — |
|
| Other | 3,819 |
| | 3,521 |
| | 4,021 |
| | 11,530 |
| | 12,231 |
|
| Total operating expense | 56,478 |
| | 62,465 |
| | 60,979 |
| | 180,648 |
| | 173,678 |
|
| Income/(loss) before income taxes | 15,444 |
| | 18,062 |
| | (19,286 | ) | | 32,256 |
| | (12,173 | ) |
| Income tax expense/(benefit) | 4,570 |
| | 4,229 |
| | (12,412 | ) | | 8,620 |
| | (11,278 | ) |
| Net income/(loss) from continuing operations | 10,874 |
| | 13,833 |
| | (6,874 | ) | | 23,636 |
| | (895 | ) |
| Net income/(loss) from discontinued operations (1) | 1,567 |
| | 1,516 |
| | 267 |
| | 4,752 |
| | 1,812 |
|
| Net income/(loss) before attribution to noncontrolling interests | 12,441 |
| | 15,349 |
| | (6,607 | ) | | 28,388 |
| | 917 |
|
| Less: Net income/ (loss) attributable to noncontrolling interests | 762 |
| | 804 |
| | 629 |
| | 2,313 |
| | 1,929 |
|
| Net income/(loss) attributable to the Company | $ | 11,679 |
| | $ | 14,545 |
| | $ | (7,236 | ) | | $ | 26,075 |
| | $ | (1,012 | ) |
Boston Private Financial Holdings, Inc.
Selected Financial Data (Unaudited)
|
| | | | | | | | | | | | | | | | | | | |
| | Three Months Ended | | Nine Months Ended |
| PER SHARE DATA: | September 30,
2011 | | June 30,
2011 | | September 30,
2010 | | September 30,
2011 | | September 30,
2010 |
| | (In thousands, except share and per share data) |
| Calculation of Income/(Loss) for EPS: | | | | | | | | | |
| Net Income/(Loss) from Continuing Operations | $ | 10,874 |
| | $ | 13,833 |
| | $ | (6,874 | ) | | 23,636 |
| | (895 | ) |
| Less: Net Income Attributable to Noncontrolling Interests | 762 |
| | 804 |
| | 629 |
| | 2,313 |
| | 1,929 |
|
| Net Income/(Loss) from Continuing Operations Attributable to the Company | $ | 10,112 |
| | $ | 13,029 |
| | $ | (7,503 | ) | | 21,323 |
| | (2,824 | ) |
| Adjustments to Net Income/(Loss) Attributable to the Company to Arrive at Net Income/(Loss) Attributable to Common Stockholders (3) | (265 | ) | | (199 | ) | | 163 |
| | (740 | ) | | (9,466 | ) |
| Net Income/(Loss) from Continuing Operations Attributable to the Common Stockholders | $ | 9,847 |
| | $ | 12,830 |
| | $ | (7,340 | ) | | 20,583 |
| | (12,290 | ) |
| Net Income/(Loss) from Discontinued Operations (1) | $ | 1,567 |
| | $ | 1,516 |
| | $ | 267 |
| | 4,752 |
| | 1,812 |
|
| Net Income/(Loss) Attributable to the Common Stockholders | $ | 11,414 |
| | $ | 14,346 |
| | $ | (7,073 | ) | | 25,335 |
| | (10,478 | ) |
| | | | | | | | | | |
| Dividends Paid on Series B Preferred Stock for Diluted EPS | $ | 73 |
| | $ | 73 |
| | $ | — |
| | $ | 218 |
| | $ | — |
|
| | | | | | | | | | |
| End of Period Common Shares Outstanding | 78,004,135 |
| | 77,942,074 |
| | 76,592,333 |
| | 78,004,135 |
| | 76,592,333 |
|
| | | | | | | | | | |
| Average Shares Outstanding: | | | | | | | | | |
| Weighted Average Basic Shares | 75,378,923 |
| | 75,194,687 |
| | 74,153,623 |
| | 75,083,976 |
| | 70,293,324 |
|
| Weighted Average Diluted Shares (4) | 83,556,408 |
| | 83,264,842 |
| | 74,153,623 |
| | 83,176,060 |
| | 70,293,324 |
|
| | | | | | | | | | |
| Earnings/(Loss) per Share - Basic | | | | | | | | | |
| Earnings/(Loss) per Share from Continuing Operations | $ | 0.13 |
| | $ | 0.17 |
| | $ | (0.10 | ) | | $ | 0.28 |
| | $ | (0.18 | ) |
| Income/(Loss) per Share from Discontinued Operations (1) | $ | 0.02 |
| | $ | 0.02 |
| | $ | — |
| | $ | 0.06 |
| | $ | 0.03 |
|
| Earnings/(Loss) per Share | $ | 0.15 |
| | $ | 0.19 |
| | $ | (0.10 | ) | | $ | 0.34 |
| | $ | (0.15 | ) |
| | | | | | | | | | |
| Earnings/(Loss) per Share - Diluted (6) | | | | | | | | | |
| Earnings/(Loss) per Share from Continuing Operations | $ | 0.12 |
| | $ | 0.15 |
| | $ | (0.10 | ) | | $ | 0.25 |
| | $ | (0.18 | ) |
| Income/(Loss) per Share from Discontinued Operations (1) | $ | 0.02 |
| | $ | 0.02 |
| | $ | — |
| | $ | 0.06 |
| | $ | 0.03 |
|
| Earnings/(Loss) per Share | $ | 0.14 |
| | $ | 0.17 |
| | $ | (0.10 | ) | | $ | 0.31 |
| | $ | (0.15 | ) |
Boston Private Financial Holdings, Inc.
Selected Financial Data (Unaudited)
|
| | | | | | | | | | | |
| (In thousands, except per share data) | September 30,
2011 | | June 30,
2011 | | September 30,
2010 |
| FINANCIAL DATA: |
| Book Value Per Common Share | $ | 6.33 |
| | $ | 6.17 |
| | $ | 6.21 |
|
| Tangible Book Value Per Share (2) | $ | 4.92 |
| | $ | 4.76 |
| | $ | 4.77 |
|
| Market Price Per Share | $ | 5.88 |
| | $ | 6.58 |
| | $ | 6.54 |
|
| | | | | | |
| | | | | | |
| ASSETS UNDER MANAGEMENT AND ADVISORY: | | | | | |
| Private Banking | $ | 3,427,000 |
| | $ | 3,739,000 |
| | $ | 3,561,000 |
|
| Investment Managers | 7,127,000 |
| | 8,295,000 |
| | 7,521,000 |
|
| Wealth Advisory | 7,673,000 |
| | 8,184,000 |
| | 7,553,000 |
|
| Less: Inter-company Relationship | (18,000 | ) | | (20,000 | ) | | (18,000 | ) |
| Assets Under Management and Advisory | $ | 18,209,000 |
| | $ | 20,198,000 |
| | $ | 18,617,000 |
|
| | | | | | |
| FINANCIAL RATIOS: | | | | | |
| Total Equity/Total Assets | 9.16 | % | | 8.93 | % | | 8.85 | % |
| Tangible Common Equity/Tangible Assets (2) | 7.14 | % | | 6.88 | % | | 6.80 | % |
| Tangible Common Equity/Risk Weighted Assets (2) | 10.39 | % | | 10.22 | % | | 9.61 | % |
| Allowance for Loan Losses/Total Loans | 2.20 | % | | 2.24 | % | | 2.21 | % |
| Allowance for Loan Losses/Non-performing Loans | 134 | % | | 124 | % | | 70 | % |
| Return on Average Assets - Three Months Ended | 0.76 | % | | 0.96 | % | | (0.48 | )% |
| Return on Average Equity - Three Months Ended | 8.57 | % | | 10.98 | % | | (5.36 | )% |
| Efficiency Ratio (2) | 72.31 | % | | 77.92 | % | | 80.67 | % |
Boston Private Financial Holdings, Inc.
Selected Financial Data (Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Average Balance | | Interest Income/Expense | | Average Yield/Rate |
| (In Thousands) | Three Months Ended | | Three Months Ended | | Three Months Ended |
| AVERAGE BALANCE SHEET: | Sep 30,
2011 | Jun 30,
2011 | Sep 30,
2010 | | Sep 30,
2011 | Jun 30,
2011 | Sep 30,
2010 | | Sep 30,
2011 | Jun 30,
2011 | Sep 30,
2010 |
| AVERAGE ASSETS | | | | | | | | | | | |
| Earning Assets: | | | | | | | | | | | |
| Cash and Investments: | | | | | | | | | | | |
| Taxable investment securities | $ | 396,415 |
| $ | 367,567 |
| $ | 314,636 |
| | $ | 1,493 |
| $ | 1,391 |
| $ | 1,613 |
| | 1.51 | % | 1.51 | % | 2.05 | % |
| Non-taxable investment securities (5) | 190,772 |
| 187,379 |
| 198,369 |
| | 1,386 |
| 1,403 |
| 1,951 |
| | 2.91 | % | 2.99 | % | 3.93 | % |
| Mortgage-backed securities | 236,105 |
| 228,578 |
| 219,651 |
| | 1,873 |
| 1,841 |
| 1,902 |
| | 3.17 | % | 3.22 | % | 3.46 | % |
| Federal funds sold and other | 400,785 |
| 462,350 |
| 351,850 |
| | 245 |
| 283 |
| 223 |
| | 0.24 | % | 0.25 | % | 0.25 | % |
| Total Cash and Investments | 1,224,077 |
| 1,245,874 |
| 1,084,506 |
| | 4,997 |
| 4,918 |
| 5,689 |
| | 1.63 | % | 1.58 | % | 2.10 | % |
| Loans: (6) | | | | | | | | | | | |
| Commercial and Construction (5) | 2,346,169 |
| 2,400,681 |
| 2,587,847 |
| | 32,204 |
| 33,819 |
| 36,481 |
| | 5.39 | % | 5.49 | % | 5.56 | % |
| Residential Mortgage | 1,794,929 |
| 1,742,769 |
| 1,637,831 |
| | 19,022 |
| 19,131 |
| 19,621 |
| | 4.24 | % | 4.39 | % | 4.79 | % |
| Home Equity and Other Consumer | 318,003 |
| 316,268 |
| 295,395 |
| | 2,993 |
| 2,971 |
| 3,116 |
| | 3.71 | % | 3.75 | % | 4.16 | % |
| Total Loans | 4,459,101 |
| 4,459,718 |
| 4,521,073 |
| | 54,219 |
| 55,921 |
| 59,218 |
| | 4.81 | % | 4.94 | % | 5.19 | % |
| Total Earning Assets | 5,683,178 |
| 5,705,592 |
| 5,605,579 |
| | 59,216 |
| 60,839 |
| 64,907 |
| | 4.12 | % | 4.20 | % | 4.59 | % |
| Less: Allowance for Loan Losses | 99,387 |
| 103,233 |
| 81,543 |
| | | | | | | | |
| Cash and due From Banks (Non-Interest Bearing) | 53,582 |
| 31,690 |
| 27,983 |
| | | | | | | | |
| Other Assets | 543,271 |
| 456,139 |
| 443,124 |
| | | | | | | | |
| TOTAL AVERAGE ASSETS | $ | 6,180,644 |
| $ | 6,090,188 |
| $ | 5,995,143 |
| | | | | | | | |
| AVERAGE LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | | | | | | |
| Interest-Bearing Liabilities: | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | |
| Savings and NOW | $ | 539,489 |
| $ | 517,271 |
| $ | 559,413 |
| | $ | 357 |
| $ | 358 |
| $ | 467 |
| | 0.26 | % | 0.28 | % | 0.33 | % |
| Money Market | 1,857,755 |
| 1,910,004 |
| 1,698,381 |
| | 2,506 |
| 2,787 |
| 3,821 |
| | 0.54 | % | 0.59 | % | 0.89 | % |
| Certificates of Deposit | 1,006,639 |
| 1,029,713 |
| 1,277,670 |
| | 3,058 |
| 3,156 |
| 4,422 |
| | 1.21 | % | 1.23 | % | 1.37 | % |
| Total Deposits | 3,403,883 |
| 3,456,988 |
| 3,535,464 |
| | 5,921 |
| 6,301 |
| 8,710 |
| | 0.69 | % | 0.73 | % | 0.98 | % |
| Junior Subordinated Debentures | 188,645 |
| 192,416 |
| 193,645 |
| | 1,851 |
| 1,905 |
| 2,511 |
| | 3.92 | % | 3.96 | % | 5.19 | % |
| FHLB Borrowings and Other | 657,122 |
| 644,084 |
| 614,459 |
| | 4,688 |
| 4,780 |
| 5,392 |
| | 2.79 | % | 2.94 | % | 3.43 | % |
| Total Interest-Bearing Liabilities | 4,249,650 |
| 4,293,488 |
| 4,343,568 |
| | 12,460 |
| 12,986 |
| 16,613 |
| | 1.16 | % | 1.21 | % | 1.51 | % |
| Non-interest Bearing Demand Deposits | 1,139,457 |
| 1,128,330 |
| 986,892 |
| | | | | | | | |
| Payables and Other Liabilities | 224,717 |
| 117,707 |
| 104,806 |
| | | | | | | | |
| Total Liabilities | 5,613,824 |
| 5,539,525 |
| 5,435,266 |
| | | | | | | | |
| Redeemable Noncontrolling Interests | 21,516 |
| 20,613 |
| 19,542 |
| | | | | | | | |
| Stockholders' Equity | 545,304 |
| 530,050 |
| 540,335 |
| | | | | | | | |
| TOTAL AVERAGE LIABILITIES & STOCKHOLDERS' EQUITY | $ | 6,180,644 |
| $ | 6,090,188 |
| $ | 5,995,143 |
| | | | | | | | |
| Net Interest Income - on a Fully Taxable Equivalent Basis (FTE) | | | | | $ | 46,756 |
| $ | 47,853 |
| $ | 48,294 |
| | | | |
| FTE Adjustment (5) | | | | | 1,684 |
| 1,829 |
| 1,850 |
| | | | |
| Net Interest Income (GAAP Basis) | | | | | $ | 45,072 |
| $ | 46,024 |
| $ | 46,444 |
| | | | |
| Interest Rate Spread | | | | | | | | | 2.96 | % | 2.99 | % | 3.08 | % |
| Net Interest Margin | | | | | | | | | 3.26 | % | 3.29 | % | 3.42 | % |
Boston Private Financial Holdings, Inc.
Selected Financial Data (Unaudited)
|
| | | | | | | | | | | | | | | | | | |
| | Average Balance | | Interest Income/Expense | | Average Yield/Rate |
| (In Thousands) | Nine Months Ended | | Nine Months Ended | | Nine Months Ended |
| AVERAGE BALANCE SHEET: | Sep 30,
2011 | Sep 30,
2010 | | Sep 30,
2011 | Sep 30,
2010 | | Sep 30,
2011 | Sep 30,
2010 |
| AVERAGE ASSETS | | | | | | | | |
| Earning Assets: | | | | | | | | |
| Cash and Investments: | | | | | | | | |
| Taxable investment securities | $ | 375,172 |
| $ | 293,883 |
| | $ | 4,263 |
| $ | 4,742 |
| | 1.51 | % | 2.15 | % |
| Non-taxable investment securities (5) | 193,435 |
| 189,991 |
| | 4,443 |
| 5,928 |
| | 3.06 | % | 4.16 | % |
| Mortgage-backed securities | 233,309 |
| 240,176 |
| | 5,521 |
| 6,228 |
| | 3.16 | % | 3.46 | % |
| Federal funds sold and other | 474,173 |
| 515,648 |
| | 849 |
| 943 |
| | 0.24 | % | 0.24 | % |
| Total Cash and Investments | 1,276,089 |
| 1,239,698 |
| | 15,076 |
| 17,841 |
| | 1.58 | % | 1.92 | % |
| Loans: (6) | | | | | | | | |
| Commercial and Construction (5) | 2,379,006 |
| 2,569,262 |
| | 98,338 |
| 109,482 |
| | 5.47 | % | 5.59 | % |
| Residential Mortgage | 1,741,302 |
| 1,572,909 |
| | 56,882 |
| 57,758 |
| | 4.36 | % | 4.90 | % |
| Home Equity and Other Consumer | 328,641 |
| 278,313 |
| | 8,831 |
| 9,418 |
| | 3.57 | % | 5.01 | % |
| Total Loans | 4,448,949 |
| 4,420,484 |
| | 164,051 |
| 176,658 |
| | 4.89 | % | 5.30 | % |
| Total Earning Assets | 5,725,038 |
| 5,660,182 |
| | 179,127 |
| 194,499 |
| | 4.15 | % | 4.56 | % |
| Less: Allowance for Loan Losses | 100,761 |
| 75,446 |
| | | | | | |
| Cash and due From Banks (Non-Interest Bearing) | 39,696 |
| 29,658 |
| | | | | | |
| Other Assets | 476,103 |
| 500,203 |
| | | | | | |
| TOTAL AVERAGE ASSETS | $ | 6,140,076 |
| $ | 6,114,597 |
| | | | | | |
| AVERAGE LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | | | |
| Interest-Bearing Liabilities: | | | | | | | | |
| Deposits: | | | | | | | | |
| Savings and NOW | $ | 532,340 |
| $ | 537,323 |
| | $ | 1,090 |
| $ | 1,575 |
| | 0.27 | % | 0.39 | % |
| Money Market | 1,867,430 |
| 1,666,649 |
| | 8,107 |
| 11,504 |
| | 0.58 | % | 0.92 | % |
| Certificates of Deposit | 1,039,997 |
| 1,361,830 |
| | 9,674 |
| 15,642 |
| | 1.24 | % | 1.54 | % |
| Total Deposits | 3,439,767 |
| 3,565,802 |
| | 18,871 |
| 28,721 |
| | 0.73 | % | 1.08 | % |
| Junior Subordinated Debentures | 191,639 |
| 193,645 |
| | 5,648 |
| 7,505 |
| | 3.93 | % | 5.17 | % |
| FHLB Borrowings and Other | 666,263 |
| 635,764 |
| | 14,382 |
| 17,121 |
| | 2.85 | % | 3.55 | % |
| Total Interest-Bearing Liabilities | 4,297,669 |
| 4,395,211 |
| | 38,901 |
| 53,347 |
| | 1.20 | % | 1.62 | % |
| Non-interest Bearing Demand Deposits | 1,136,918 |
| 1,011,493 |
| | | | | | |
| Payables and Other Liabilities | 152,885 |
| 100,739 |
| | | | | | |
| Total Liabilities | 5,587,472 |
| 5,507,443 |
| | | | | | |
| Redeemable Noncontrolling Interests | 20,657 |
| 20,508 |
| | | | | | |
| Stockholders' Equity | 531,947 |
| 586,646 |
| | | | | | |
| TOTAL AVERAGE LIABILITIES & STOCKHOLDERS' EQUITY | $ | 6,140,076 |
| $ | 6,114,597 |
| | | | | | |
| Net Interest Income - on a Fully Taxable Equivalent Basis (FTE) | | | | $ | 140,226 |
| $ | 141,152 |
| | | |
| FTE Adjustment (5) | | | | 5,419 |
| 5,380 |
| | | |
| Net Interest Income (GAAP Basis) | | | | $ | 134,807 |
| $ | 135,772 |
| | | |
| Interest Rate Spread | | | | | | | 2.95 | % | 2.94 | % |
| Net Interest Margin | | | | | | | 3.25 | % | 3.31 | % |
Boston Private Financial Holdings, Inc.
Selected Financial Data (Unaudited)
|
| | | | | | | | | | | |
| (In Thousands) | September 30,
2011 | | June 30,
2011 | | September 30,
2010 |
| LOAN DATA (7): | | |
| Commercial and Industrial Loans: | | | | | |
| New England | $ | 502,382 |
| | $ | 480,452 |
| | $ | 435,695 |
|
| San Francisco Bay | 57,918 |
| | 60,065 |
| | 76,136 |
|
| Southern California | 42,770 |
| | 45,001 |
| | 49,025 |
|
| Pacific Northwest | 38,223 |
| | 34,326 |
| | 42,855 |
|
| Eliminations and other, net | — |
| | (116 | ) | | (213 | ) |
| Total Commercial and Industrial Loans | $ | 641,293 |
| | $ | 619,728 |
| | $ | 603,498 |
|
| Commercial Real Estate Loans: | | | | | |
| New England | $ | 627,413 |
| | $ | 625,328 |
| | $ | 647,182 |
|
| San Francisco Bay | 662,436 |
| | 670,469 |
| | 859,858 |
|
| Southern California | 194,998 |
| | 170,496 |
| | 184,358 |
|
| Pacific Northwest | 109,983 |
| | 102,295 |
| | 91,482 |
|
| Total Commercial Real Estate Loans | $ | 1,594,830 |
| | $ | 1,568,588 |
| | $ | 1,782,880 |
|
| Construction and Land Loans: | | | | | |
| New England | $ | 90,751 |
| | $ | 78,149 |
| | $ | 97,585 |
|
| San Francisco Bay | 41,157 |
| | 42,286 |
| | 97,791 |
|
| Southern California | 5,530 |
| | 3,215 |
| | 1,869 |
|
| Pacific Northwest | 7,279 |
| | 6,920 |
| | 13,670 |
|
| Total Construction and Land Loans | $ | 144,717 |
| | $ | 130,570 |
| | $ | 210,915 |
|
| Residential Mortgage Loans: | | | | | |
| New England | $ | 1,237,389 |
| | $ | 1,217,654 |
| | $ | 1,154,671 |
|
| San Francisco Bay | 322,783 |
| | 321,110 |
| | 277,321 |
|
| Southern California | 177,647 |
| | 177,320 |
| | 159,321 |
|
| Pacific Northwest | 53,056 |
| | 51,587 |
| | 43,645 |
|
| Total Residential Mortgage Loans | $ | 1,790,875 |
| | $ | 1,767,671 |
| | $ | 1,634,958 |
|
| Home Equity Loans: | | | | | |
| New England | $ | 90,082 |
| | $ | 91,041 |
| | $ | 102,321 |
|
| San Francisco Bay | 49,475 |
| | 52,132 |
| | 51,761 |
|
| Southern California | 5,756 |
| | 4,910 |
| | 5,085 |
|
| Pacific Northwest | 5,343 |
| | 5,445 |
| | 5,176 |
|
| Total Home Equity Loans | $ | 150,656 |
| | $ | 153,528 |
| | $ | 164,343 |
|
| Other Consumer Loans: | | | | | |
| New England | $ | 137,692 |
| | $ | 140,006 |
| | $ | 99,248 |
|
| San Francisco Bay | 12,427 |
| | 14,330 |
| | 20,391 |
|
| Southern California | 11,970 |
| | 12,199 |
| | 10,444 |
|
| Pacific Northwest | 1,688 |
| | 1,180 |
| | 1,391 |
|
| Eliminations and other, net | 1,571 |
| | 1,640 |
| | 2,206 |
|
| Total Other Consumer Loans | $ | 165,348 |
| | $ | 169,355 |
| | $ | 133,680 |
|
| Total Loans | | | | | |
| New England | $ | 2,685,709 |
| | $ | 2,632,630 |
| | $ | 2,536,702 |
|
| San Francisco Bay | 1,146,196 |
| | 1,160,392 |
| | 1,383,258 |
|
| Southern California | 438,671 |
| | 413,141 |
| | 410,102 |
|
| Pacific Northwest | 215,572 |
| | 201,753 |
| | 198,219 |
|
| Eliminations and other, net | 1,571 |
| | 1,524 |
| | 1,993 |
|
| Total Loans | $ | 4,487,719 |
| | $ | 4,409,440 |
| | $ | 4,530,274 |
|
Boston Private Financial Holdings, Inc.
Selected Financial Data (Unaudited)
|
| | | | | | | | | | | |
| (In Thousands) | September 30,
2011 | | June 30,
2011 | | September 30,
2010 |
| CREDIT QUALITY (7): | |
| Special Mention Loans: | | | | | |
| New England | $ | 60,383 |
| | $ | 55,051 |
| | $ | 54,375 |
|
| San Francisco Bay | 71,640 |
| | 68,262 |
| | 66,493 |
|
| Southern California | 32,189 |
| | 16,158 |
| | 7,872 |
|
| Pacific Northwest | 13,901 |
| | 17,029 |
| | 21,325 |
|
| Total Special Mention Loans | $ | 178,113 |
| | $ | 156,500 |
| | $ | 150,065 |
|
| Accruing Classified Loans (8): | | | | | |
| New England | $ | 21,328 |
| | $ | 17,213 |
| | $ | 19,228 |
|
| San Francisco Bay | 55,426 |
| | 57,420 |
| | 66,061 |
|
| Southern California | 23,815 |
| | 25,145 |
| | 11,467 |
|
| Pacific Northwest | 3,310 |
| | 3,697 |
| | 9,308 |
|
| Total Accruing Classified Loans | $ | 103,879 |
| | $ | 103,475 |
| | $ | 106,064 |
|
| Non-performing Loans: | | | | | |
| New England | $ | 33,413 |
| | $ | 29,095 |
| | $ | 20,872 |
|
| San Francisco Bay | 27,449 |
| | 31,753 |
| | 99,573 |
|
| Southern California (9) | 10,186 |
| | 13,226 |
| | 12,585 |
|
| Pacific Northwest | 2,397 |
| | 5,868 |
| | 10,060 |
|
| Total Non-performing Loans | $ | 73,445 |
| | $ | 79,942 |
| | $ | 143,090 |
|
| Other Real Estate Owned: | | | | | |
| New England | $ | 1,301 |
| | $ | 1,498 |
| | $ | 892 |
|
| San Francisco Bay | 5,847 |
| | 10,974 |
| | 4,283 |
|
| Southern California | 345 |
| | 345 |
| | 4,141 |
|
| Pacific Northwest | 1,668 |
| | 1,668 |
| | 3,753 |
|
| Total Other Real Estate Owned | $ | 9,161 |
| | $ | 14,485 |
| | $ | 13,069 |
|
| Loans 30-89 Days Past Due and Accruing: | | | | | |
| New England | $ | 348 |
| | $ | 3,060 |
| | $ | 5,515 |
|
| San Francisco Bay | 16,649 |
| | 2,304 |
| | 8,270 |
|
| Southern California | 3,947 |
| | 1,137 |
| | 2,860 |
|
| Pacific Northwest | — |
| | — |
| | 226 |
|
| Total Loans 30-89 Days Past Due and Accruing | $ | 20,944 |
| | $ | 6,501 |
| | $ | 16,871 |
|
| Loans Charged-off/ (Recovered), Net for the Three Months Ended: | | | | | |
| New England | $ | 752 |
| | $ | 127 |
| | $ | 393 |
|
| San Francisco Bay | 3,266 |
| | 2,036 |
| | 11,896 |
|
| Southern California | 179 |
| | (3,552 | ) | | (1,224 | ) |
| Pacific Northwest | 286 |
| | 739 |
| | 48 |
|
| Total Net Loans Charged-off/ (Recovered) | $ | 4,483 |
| | $ | (650 | ) | | $ | 11,113 |
|
| Loans Charged-off/ (Recovered), Net for the Nine Months Ended: | | | | | |
| New England | $ | 2,153 |
| | | | $ | 3,215 |
|
| San Francisco Bay | 16,591 |
| | | | 20,901 |
|
| Southern California | (4,460 | ) | | | | (1,635 | ) |
| Pacific Northwest | 1,019 |
| | | | 580 |
|
| Total Net Loans Charged-off/ (Recovered) | $ | 15,303 |
| | | | $ | 23,061 |
|
Boston Private Financial Holdings, Inc.
Selected Financial Data
(Unaudited)
| |
| (1) | In 2009, the Company completed the sale of its affiliates Boston Private Value Investors, Sand Hill Advisors, RINET, Gibraltar, and Westfield Capital Management. Accordingly, prior period and current financial information related to the divested companies are included with discontinued operations. |
| |
| (2) | The Company uses certain non-GAAP financial measures, such as: Tangible Book Value; the Tangible Common Equity ("TCE") to Tangible Assets ("TA") ratio; the TCE to Risk Weighted Assets ratio; pre-tax, pre-provision earnings; and operating expenses excluding restructuring costs to provide information for investors to effectively analyze financial trends of ongoing business activities, and to enhance comparability with peers across the financial sector. |
Reconciliations from the Company's GAAP Total Equity to Total Assets ratio to the Non-GAAP TCE to TA ratio, and the Non-GAAP TCE to Risk Weighted Assets ratio, and from GAAP Book Value to Non-GAAP Tangible Book Value are presented below:
The Company calculates Tangible Assets by adjusting Total Assets to exclude Goodwill and Intangible Assets.
The Company calculates Tangible Common Equity by adjusting Total Equity to exclude Goodwill and Intangible Assets, net and includes the difference between Redemption Value and value per ARB 51 for Redeemable Non-controlling Interests.
|
| | | | | | | | | | | |
| (In Thousands) | September 30,
2011 | | June 30,
2011 | | September 30,
2010 |
| Total Balance Sheet Assets | $ | 6,023,309 |
| | $ | 6,036,778 |
| | $ | 6,031,266 |
|
| LESS: Goodwill and Intangible Assets, net | (146,774 | ) | | (147,951 | ) | | (146,153 | ) |
| Tangible Assets (non-GAAP) | 5,876,535 |
| | 5,888,827 |
| | 5,885,113 |
|
| Total Equity | 551,654 |
| | 538,970 |
| | 533,762 |
|
| LESS: Goodwill and Intangible Assets, net | (146,774 | ) | | (147,951 | ) | | (146,153 | ) |
| ADD: Difference between Redemption Value of Non-controlling Interests and value under ARB 51 | 14,641 |
| | 14,170 |
| | 12,608 |
|
| Total adjusting items | (132,133 | ) | | (133,781 | ) | | (133,545 | ) |
| Tangible Common Equity (non-GAAP) | 419,521 |
| | 405,189 |
| | 400,217 |
|
| Total Equity/Total Assets | 9.16 | % | | 8.93 | % | | 8.85 | % |
| Tangible Common Equity/Tangible Assets (non-GAAP) | 7.14 | % | | 6.88 | % | | 6.80 | % |
| | | | | | |
| Total Risk Weighted Assets * | 4,037,336 |
| | 3,965,672 |
| | 4,165,485 |
|
| Tangible Common Equity/Total Risk Weighted Assets (non-GAAP) | 10.39 | % | | 10.22 | % | | 9.61 | % |
| | | | | | |
| End of Period Shares Outstanding | 78,004 |
| | 77,942 |
| | 76,592 |
|
| EOP Carlyle Common Convertible Shares | 7,261 |
| | 7,261 |
| | 7,261 |
|
| Common Equivalent Shares | 85,265 |
| | 85,203 |
| | 83,853 |
|
| | | | | | |
| Book Value Per Common Share | $ | 6.33 |
| | $ | 6.17 |
| | $ | 6.21 |
|
| Tangible Book Value Per Share | $ | 4.92 |
| | $ | 4.76 |
| | $ | 4.77 |
|
* Risk Weighted Assets for September 30, 2011 is shown on a pro-forma basis
Boston Private Financial Holdings, Inc.
Selected Financial Data
(Unaudited)
Reconciliations from the Company's GAAP net income attributable to the Company to Non-GAAP pre-tax, pre-provision earnings and from GAAP operating expenses to Non-GAAP operating expenses excluding restructuring costs are presented below:
|
| | | | | | | | | | | |
| (In Thousands) | September 30,
2011 | | June 30,
2011 | | September 30,
2010 |
| Net income/(loss) attributable to the Company (GAAP) | $ | 11,679 |
| | $ | 14,545 |
| | $ | (7,236 | ) |
| ADD BACK: Provision/ (credit) for loan losses | 4,500 |
| | (2,190 | ) | | 32,050 |
|
| ADD BACK: Income tax expense/(benefit) | 4,570 |
| | 4,229 |
| | (12,412 | ) |
| Pre-tax, pre-provision earnings (Non-GAAP) | $ | 20,749 |
| | $ | 16,584 |
| | $ | 12,402 |
|
| | | | | | |
| Total operating expense (GAAP) | $ | 56,478 |
| | $ | 62,465 |
| | $ | 60,979 |
|
| LESS: Restructuring expense | 1,116 |
| | 4,304 |
| | — |
|
| Total operating expenses (excluding restructuring costs) (Non-GAAP) | $ | 55,362 |
| | $ | 58,161 |
| | $ | 60,979 |
|
| |
| (3) | Adjustments to Net Income/(Loss) Attributable to the Company to arrive at Net Income/(Loss) Attributable to the Common Stockholders, as presented in these tables, include decrease/ (increase) in Noncontrolling Interests Redemption Value; Dividends on Preferred Securities; and Accretion of Discount on Series C Preferred Stock. |
| |
| (4) | When the Company has positive Net Income from Continuing Operations Attributable to the Common Stockholders, the Company adds additional shares to Basic Weighted Average Shares Outstanding to arrive at Diluted Weighted Average Shares Outstanding for the Diluted Earnings Per Share calculation to reflect the assumed exercise, conversion, or contingent issuance of dilutive securities. If the additional shares would result in anti-dilution they would be excluded from the Diluted Earning Per Share calculation. The potential dilutive shares relate to: unexercised stock options, unvested restricted stock, unexercised stock warrants, contingently issuable shares, unconverted Convertible Preferred stock, and unconverted Convertible Trust Preferred securities. The amount of shares that were anti-dilutive for the three and nine months ended September 30, 2011 were 1.7 million for both periods. The amount of shares that were anti-dilutive for the three and nine months ended September 30, 2010 were 10.5 million, and 10.7 million respectively. The amount of shares that were anti-dilutive for the three months ended June 30, 2011 were 1.7 million. See Part II. Item 8. "Financial Statements and Supplementary Data - Note 1: Basis of Presentation and Summary of Significant Accounting Policies"in the Company's Annual Report on Form 10-K, as amended, for the year ended December 31, 2010 for additional information. |
| |
| (5) | Interest Income on Non-taxable Investments and Loans are presented on an FTE basis using the federal statutory rate. |
| |
| (6) | Includes Loans Held for Sale and Non-accrual Loans. |
| |
| (7) | The concentration of the Private Banking loan data and credit quality is based on the location of the lender. Net loans from the Holding Company to certain principals of the Company's affiliate partners, loans at the Company's non-banking segments, and inter-company loan eliminations are identified as “Eliminations and other, net”. |
| |
| (8) | Accruing classified loans include loans that are classified as substandard but are still accruing interest income. The Bank may classify a loan as substandard where known information about possible credit problems of the related borrowers causes management to have doubts as to the ability of such borrowers to comply with the present repayment terms and which may result in disclosure of such loans as nonperforming at some time in the future. |
| |
| (9) | Includes the non-strategic loans held for sale of $2.9 million at September 30, 2010. There were no non-strategic loans held for sale at September 30, 2011 or June 30, 2011. |
