Exhibit 99.1
Boston Private Financial Holdings, Inc. Reports Second Quarter 2012 Results
Second Quarter Highlights:
| • | Strong loan growth: Total Loans increased 5% to $5.1 billion in the quarter and increased 15% year-over-year. |
| • | Net Interest Income increases: Net Interest Income increased 4% to $46.6 million in the quarter and increased 1% year-over-year. Net Interest Margin increased 8 basis points on a linked quarter basis to 3.35%. |
| • | Provision decreases: Provision for Loan Losses was $1.7 million in the quarter, down from $4.0 million in the first quarter of 2012. |
| • | Expenses decrease: Operating Expenses declined 1% to $55.3 million in the quarter and declined 9% year-over-year. The Efficiency Ratio was 72%, down from 78% one year ago. |
Boston, MA - July 18, 2012 - Boston Private Financial Holdings, Inc. (NASDAQ: BPFH) (the “Company” or “BPFH”) today reported second quarter 2012 GAAP Net Income Attributable to the Company of $14.2 million, compared to GAAP Net Income Attributable to the Company of $9.5 million in the first quarter of 2012. BPFH reported second quarter diluted earnings per share of $0.17 compared to diluted earnings per share of $0.11 in the first quarter of 2012.
On a year-over-year basis, GAAP Net Income Attributable to the Company decreased from $14.5 million in the second quarter of 2011. Earnings per share were flat on a year-over-year basis.
“While the yield environment remains challenging, our results show continued progress in our efforts to steadily build profitability,” said CEO and President Clayton G. Deutsch. “Our results reflect revenue growth, albeit below target growth rates due to the macro environment. We also continue to benefit from expense management initiatives, and a Provision for Loan Losses which reflects much improved credit quality. Our Return on Equity is now near 10%, and we continue to accumulate Tangible Common Equity.”
“We completed our restructuring program before the end of June, keeping our promise to bring all merger-related conversion and consolidation efforts to a close by the end of the first half of 2012. We are now shifting our attention to driving additional profitability gains across our Wealth Management and Private Banking businesses,” concluded Mr. Deutsch.
Revenue Growth Driven By Increase in Spread-Based Revenues and Fees
Net Interest Income in the second quarter was $46.6 million, up 4% from $44.8 million in the first quarter of 2012. Year-over-year, Net Interest Income increased 1% from $46.0 million. Fees and Other Income for the second quarter increased 2% to $28.0 million. On a year-over-year basis, Fees and Other Income decreased 9% from $30.7 million due primarily to fewer non-core gains in the second quarter of 2012 compared to the second quarter of 2011.
Net Interest Margin was 3.35% in the second quarter, up 8 basis points from 3.27% in the first quarter of 2012. Recovery of nonaccrual interest income and pre-payment penalties had a positive impact on Net Interest Margin in the quarter. On a year-over-year basis, Net Interest Margin increased five basis points from 3.30%.
Total Assets Under Management/Advisory (“AUM”) decreased to $19.1 billion, down 1% from $19.3 billion in the first quarter of 2012. AUM was flat with the second quarter of 2011. The Company experienced second quarter 2012 AUM net inflows of $16 million, as compared to AUM net inflows of $84 million in the first quarter of 2012. AUM net outflows for the second quarter of 2011 were ($147) million.
Operating Expenses Decrease in Q2
Operating Expenses (excluding restructuring costs of $0.6 million) in the second quarter were $54.7 million, down 1% from $55.5 million (excluding restructuring costs of $0.1 million) on a linked quarter basis. On a year-over-year basis, Operating Expenses (excluding restructuring costs of $4.3 million) were down 3% from $56.6 million.
“We are pleased with the decline in Operating Expenses on a year-over-year basis, largely reflecting the successful efforts of our bank restructuring program,” said David J. Kaye, Chief Financial Officer.
Provision Declines in Q2
Provision for Loan Losses in the second quarter was $1.7 million, down from $4.0 million in the first quarter of 2012. On a year-over-year basis, Provision for Loan Losses increased from a credit of ($2.2) million in the second quarter of 2011.
1
Nonaccrual Loans (“Nonaccruals”) decreased 7% to $67.4 million on a linked quarter basis. On a year-over-year basis, Nonaccruals declined 16% from $79.9 million. As a percentage of Total Loans, Nonaccruals were 1.32% in the second quarter of 2012, down 18 basis points from 1.50% in the first quarter of 2012. On a year-over-year basis, Nonaccruals as a percentage of Total Loans declined 49 basis points from 1.81%.
Additional credit metrics are listed below on a linked quarter and year-over-year basis:
| (In millions) | June 30, 2012 | March 31, 2012 | June 30, 2011 | ||||||||
| Total Criticized Loans | $ | 298.6 | $ | 306.2 | $ | 339.8 | |||||
| Total Loans 30-89 Days Past Due and Accruing | $ | 14.2 | $ | 21.4 | $ | 6.5 | |||||
| Total Net Loans (Charged-off)/ Recovered | $ | (0.5 | ) | $ | (2.2 | ) | $ | 0.7 | |||
| Allowance for Loan Losses/ Total Loans | 1.95 | % | 2.02 | % | 2.24 | % | |||||
Regulatory Capital Increases in Q2 Due to Sale of Davidson Trust Company
In the second quarter of 2012, the Company closed on the sale of Davidson Trust Company to Bryn Mawr Bank Corporation. This transaction resulted in a one-time gain of approximately $0.8 million that flowed through discontinued operations in the second quarter of 2012. In addition, there is an estimated $2.2 million in additional consideration to be paid over an 18-month period contingent on future levels of assets under management.
Capital ratios are listed below on a linked quarter and year-over-year basis:
| June 30, 2012 | March 31, 2012 | June 30, 2011 | ||||||
| Total Risk-Based Capital * | 14.3 | % | 14.4 | % | 15.2 | % | ||
| Tier I Risk-Based Capital * | 12.2 | % | 12.0 | % | 12.1 | % | ||
| Tier I Leverage Capital * | 9.3 | % | 8.8 | % | 8.1 | % | ||
| TCE/TA | 7.4 | % | 7.2 | % | 6.9 | % | ||
| TCE/Risk Weighted Assets * | 9.9 | % | 9.8 | % | 10.2 | % | ||
| * | June 30, 2012 data is presented based on estimated data. |
2
Dividend Payments
Concurrent with the release of the second quarter 2012 earnings, the Board of Directors of the Company declared a cash dividend to shareholders of $0.01 per share. The record date for this dividend is August 16, 2012, and the payment date is August 30, 2012.
Non-GAAP Financial Measures
The Company uses certain non-GAAP financial measures, such as the TCE/TA and TCE/Risk Weighted Assets ratios, and Operating Expenses excluding restructuring charges, 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 a.m. Eastern Time on Thursday, July 19, 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: 0616713
Replay Information:
Available from July 19, 2012 at 12 noon until July 27, 2012
Dial In #: (877) 344-7529
International Dial In #: (412) 317-0088
Conference Number: 10016166
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, Los Angeles, San Francisco and Seattle. The Company has a $6 billion Private Banking balance sheet, and manages over $19 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
3
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, 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.
4
Boston Private Financial Holdings, Inc.
Selected Financial Data (Unaudited)
| June 30, 2012 | March 31, 2012 | June 30, 2011 | |||||||||
| (In thousands, except share and per share data) | |||||||||||
| Assets: | |||||||||||
| Cash and cash equivalents | $ | 102,826 | $ | 131,136 | $ | 472,035 | |||||
| Investment securities available for sale | 734,362 | 825,614 | 791,085 | ||||||||
| Loans held for sale | 12,336 | 3,727 | 4,625 | ||||||||
| Total loans | 5,091,128 | 4,849,048 | 4,410,440 | ||||||||
| Less: Allowance for loan losses | 99,054 | 97,902 | 98,742 | ||||||||
| Net loans | 4,992,074 | 4,751,146 | 4,311,698 | ||||||||
| Other real estate owned (“OREO”) | 3,054 | 3,886 | 14,485 | ||||||||
| Stock in Federal Home Loan Banks | 43,089 | 42,639 | 44,785 | ||||||||
| Premises and equipment, net | 28,919 | 29,432 | 27,168 | ||||||||
| Goodwill | 110,180 | 110,180 | 110,180 | ||||||||
| Intangible assets, net | 26,389 | 27,479 | 30,814 | ||||||||
| Fees receivable | 8,363 | 9,042 | 8,481 | ||||||||
| Accrued interest receivable | 16,667 | 16,968 | 16,881 | ||||||||
| Deferred income taxes, net | 64,968 | 66,105 | 77,182 | ||||||||
| Other assets | 121,016 | 120,318 | 118,091 | ||||||||
| Assets of discontinued operations (1) | — | 10,890 | 10,268 | ||||||||
| Total assets | $ | 6,264,243 | $ | 6,148,562 | $ | 6,037,778 | |||||
| Liabilities: | |||||||||||
| Deposits | $ | 4,595,758 | $ | 4,602,451 | $ | 4,551,319 | |||||
| Securities sold under agreements to repurchase | 100,842 | 108,551 | 122,448 | ||||||||
| Federal funds purchased | 85,000 | — | — | ||||||||
| Federal Home Loan Bank borrowings | 616,749 | 582,551 | 523,695 | ||||||||
| Junior subordinated debentures | 174,397 | 178,645 | 188,645 | ||||||||
| Other liabilities | 96,654 | 91,827 | 90,042 | ||||||||
| Liabilities of discontinued operations (1) | — | 1,392 | 1,449 | ||||||||
| Total liabilities | 5,669,400 | 5,565,417 | 5,477,598 | ||||||||
| Redeemable Noncontrolling Interests | 19,221 | 21,604 | 21,210 | ||||||||
| The Company’s Shareholders’ Equity: | |||||||||||
| Preferred stock, $1.00 par value; authorized: 2,000,000 shares; | |||||||||||
| Series B, issued and outstanding (contingently convertible): 401 shares at June 30, 2012, March 31, 2012, and June 30, 2011; 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: 78,822,462 shares at June 30, 2012; 78,151,609 shares at March 31, 2012; and 77,942,074 shares at June 30, 2011 | 78,822 | 78,152 | 77,942 | ||||||||
| Additional paid-in capital | 641,992 | 642,276 | 654,297 | ||||||||
| Accumulated deficit | (206,351 | ) | (220,512 | ) | (254,758 | ) | |||||
| Accumulated other comprehensive income | 3,070 | 3,536 | 3,400 | ||||||||
| Total shareholders’ equity | 575,622 | 561,541 | 538,970 | ||||||||
| Total liabilities, redeemable noncontrolling interests and shareholders’ equity | $ | 6,264,243 | $ | 6,148,562 | $ | 6,037,778 | |||||
5
Boston Private Financial Holdings, Inc.
Selected Financial Data (Unaudited)
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| June 30, 2012 | March 31, 2012 | June 30, 2011 | June 30, 2012 | June 30, 2011 | |||||||||||||||
| Interest and dividend income: | (In thousands, except share and per share data) | ||||||||||||||||||
| Loans | $ | 53,402 | $ | 51,946 | $ | 54,577 | $ | 105,349 | $ | 107,148 | |||||||||
| Taxable investment securities | 1,078 | 1,256 | 1,393 | 2,335 | 2,773 | ||||||||||||||
| Non-taxable investment securities | 752 | 848 | 928 | 1,600 | 2,017 | ||||||||||||||
| Mortgage-backed securities | 1,604 | 1,603 | 1,841 | 3,206 | 3,648 | ||||||||||||||
| Federal funds sold and other | 72 | 149 | 281 | 221 | 600 | ||||||||||||||
| Total interest and dividend income | 56,908 | 55,802 | 59,020 | 112,711 | 116,186 | ||||||||||||||
| Interest expense: | |||||||||||||||||||
| Deposits | 4,435 | 4,903 | 6,301 | 9,338 | 12,951 | ||||||||||||||
| Federal Home Loan Bank borrowings | 3,747 | 3,945 | 4,261 | 7,692 | 8,653 | ||||||||||||||
| Junior subordinated debentures | 1,690 | 1,752 | 1,905 | 3,443 | 3,797 | ||||||||||||||
| Repurchase agreements and other short-term borrowings | 440 | 434 | 519 | 874 | 1,040 | ||||||||||||||
| Total interest expense | 10,312 | 11,034 | 12,986 | 21,347 | 26,441 | ||||||||||||||
| Net interest income | 46,596 | 44,768 | 46,034 | 91,364 | 89,745 | ||||||||||||||
| Provision/ (credit) for loan losses | 1,700 | 4,000 | (2,190 | ) | 5,700 | 11,160 | |||||||||||||
| Net interest income after provision for loan losses | 44,896 | 40,768 | 48,224 | 85,664 | 78,585 | ||||||||||||||
| Fees and other income: | |||||||||||||||||||
| Investment management and trust fees | 15,484 | 15,238 | 16,337 | 30,722 | 32,420 | ||||||||||||||
| Wealth advisory fees | 9,183 | 9,236 | 8,616 | 18,419 | 17,049 | ||||||||||||||
| Other banking fee income | 984 | 1,017 | 1,287 | 2,000 | 2,520 | ||||||||||||||
| Gain on repurchase of debt | 715 | 879 | 1,838 | 1,594 | 1,838 | ||||||||||||||
| Gain on sale of investments, net | 839 | 13 | 167 | 853 | 586 | ||||||||||||||
| Gain on sale of loans, net | 430 | 421 | 1,125 | 851 | 1,511 | ||||||||||||||
| Gain/(loss) on OREO, net | 366 | (41 | ) | 844 | 325 | 954 | |||||||||||||
| Other | 8 | 691 | 438 | 699 | 2,230 | ||||||||||||||
| Total fees and other income | 28,009 | 27,454 | 30,652 | 55,463 | 59,108 | ||||||||||||||
| Operating expense: | |||||||||||||||||||
| Salaries and employee benefits | 34,471 | 36,912 | 34,775 | 71,383 | 70,411 | ||||||||||||||
| Occupancy and equipment | 7,931 | 7,265 | 7,332 | 15,196 | 14,560 | ||||||||||||||
| Professional services | 3,021 | 2,939 | 5,284 | 5,960 | 10,427 | ||||||||||||||
| Marketing and business development | 1,779 | 1,329 | 1,863 | 3,108 | 3,297 | ||||||||||||||
| Contract services and data processing | 1,355 | 1,188 | 1,219 | 2,543 | 2,353 | ||||||||||||||
| Amortization of intangibles | 1,090 | 1,090 | 1,397 | 2,181 | 2,555 | ||||||||||||||
| FDIC insurance | 982 | 849 | 1,294 | 1,831 | 3,530 | ||||||||||||||
| Restructuring expense | 564 | 135 | 4,304 | 699 | 6,286 | ||||||||||||||
| Other | 4,142 | 3,920 | 3,442 | 8,061 | 7,552 | ||||||||||||||
| Total operating expense | 55,335 | 55,627 | 60,910 | 110,962 | 120,971 | ||||||||||||||
| Income/(loss) before income taxes | 17,570 | 12,595 | 17,966 | 30,165 | 16,722 | ||||||||||||||
| Income tax expense/(benefit) | 5,240 | 3,851 | 4,197 | 9,091 | 4,017 | ||||||||||||||
| Net income/(loss) from continuing operations | 12,330 | 8,744 | 13,769 | 21,074 | 12,705 | ||||||||||||||
| Net income/(loss) from discontinued operations (1) | 2,590 | 1,554 | 1,553 | 4,144 | 3,216 | ||||||||||||||
| Net income/(loss) before attribution to noncontrolling interests | 14,920 | 10,298 | 15,322 | 25,218 | 15,921 | ||||||||||||||
| Less: Net income/ (loss) attributable to noncontrolling interests | 759 | 793 | 777 | 1,552 | 1,525 | ||||||||||||||
| Net income/(loss) attributable to the Company | $ | 14,161 | $ | 9,505 | $ | 14,545 | $ | 23,666 | $ | 14,396 | |||||||||
6
Boston Private Financial Holdings, Inc.
Selected Financial Data (Unaudited)
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| PER SHARE DATA: | June 30, 2012 | March 31, 2012 | June 30, 2011 | June 30, 2012 | June 30, 2011 | ||||||||||||||
| (In thousands, except share and per share data) | |||||||||||||||||||
| Calculation of Income/(Loss) for EPS: | |||||||||||||||||||
| Net income/(loss) attributable to the Company | $ | 14,161 | $ | 9,505 | $ | 14,545 | $ | 23,666 | $ | 14,396 | |||||||||
| Adjustments to Net Income/(Loss) Attributable to the Company to Arrive at Net Income/(Loss) Attributable to Common Shareholders (3) | 71 | (178 | ) | (225 | ) | (107 | ) | (518 | ) | ||||||||||
| Net Income/(Loss) Attributable to the Common Shareholders | 14,232 | 9,327 | 14,320 | 23,559 | 13,878 | ||||||||||||||
| LESS: Amount allocated to participating securities | (1,471 | ) | (932 | ) | (1,465 | ) | (2,402 | ) | (1,325 | ) | |||||||||
| Net Income/(Loss) Attributable to the Common Shareholders, after allocation to participating securities | $ | 12,761 | $ | 8,395 | $ | 12,855 | $ | 21,157 | $ | 12,553 | |||||||||
| End of Period Common Shares Outstanding | 78,822,462 | 78,151,609 | 77,942,074 | ||||||||||||||||
| Weighted Average Shares Outstanding: | |||||||||||||||||||
| Weighted average basic shares, including participating securities | 85,099,821 | 84,859,038 | 84,297,014 | 84,980,095 | 83,913,178 | ||||||||||||||
| LESS: Participating securities | (9,295,848 | ) | (9,226,058 | ) | (9,102,327 | ) | (9,261,146 | ) | (8,979,120 | ) | |||||||||
| PLUS: Dilutive potential common shares | 701,119 | 799,871 | 158,492 | 714,158 | 278,591 | ||||||||||||||
| Weighted Average Diluted Shares (2) | 76,505,092 | 76,432,851 | 75,353,179 | 76,433,107 | 75,212,649 | ||||||||||||||
| Diluted Total Earnings/(Loss) per Share | $ | 0.17 | $ | 0.11 | $ | 0.17 | $ | 0.28 | $ | 0.17 | |||||||||
7
Boston Private Financial Holdings, Inc.
Selected Financial Data (Unaudited)
| (In thousands, except per share data) | June 30, 2012 | March 31, 2012 | June 30, 2011 | ||||||||
| FINANCIAL DATA: | |||||||||||
| Book Value Per Common Share | $ | 6.57 | $ | 6.44 | $ | 6.17 | |||||
| Tangible Book Value Per Share (4) | $ | 5.26 | $ | 5.05 | $ | 4.76 | |||||
| Market Price Per Share | $ | 8.93 | $ | 9.91 | $ | 6.58 | |||||
| ASSETS UNDER MANAGEMENT AND ADVISORY: | |||||||||||
| Private Banking | $ | 3,680,000 | $ | 3,696,000 | $ | 3,739,000 | |||||
| Investment Managers | 7,982,000 | 8,047,000 | 8,295,000 | ||||||||
| Wealth Advisory | 7,474,000 | 7,579,000 | 7,175,000 | ||||||||
| Less: Inter-company Relationship | (19,000 | ) | (20,000 | ) | (20,000 | ) | |||||
| Assets Under Management and Advisory of Continuing Operations | $ | 19,117,000 | $ | 19,302,000 | $ | 19,189,000 | |||||
| Assets Under Management and Advisory of Discontinued Operations (1) | — | 1,137,000 | 1,009,000 | ||||||||
| Total Assets Under Management and Advisory | $ | 19,117,000 | $ | 20,439,000 | $ | 20,198,000 | |||||
| FINANCIAL RATIOS: | |||||||||||
| Total Equity/Total Assets | 9.19 | % | 9.13 | % | 8.93 | % | |||||
| Tangible Common Equity/Tangible Assets (4) | 7.39 | % | 7.19 | % | 6.88 | % | |||||
| Tangible Common Equity/Risk Weighted Assets (4) | 9.87 | % | 9.78 | % | 10.22 | % | |||||
| Allowance for Loan Losses/Total Loans | 1.95 | % | 2.02 | % | 2.24 | % | |||||
| Allowance for Loan Losses/Nonaccrual Loans | 147 | % | 135 | % | 124 | % | |||||
| Return on Average Assets - Three Months Ended (Annualized) | 0.92 | % | 0.62 | % | 0.96 | % | |||||
| Return on Average Equity - Three Months Ended (Annualized) | 9.96 | % | 6.74 | % | 10.98 | % | |||||
| Efficiency Ratio - Three Months Ended (Annualized) | 72.42 | % | 75.14 | % | 77.58 | % | |||||
8
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: | June 30, 2012 | March 31, 2012 | June 30, 2011 | June 30, 2012 | March 31, 2012 | June 30, 2011 | June 30, 2012 | March 31, 2012 | June 30, 2011 | |||||||||||||||||
| AVERAGE ASSETS | ||||||||||||||||||||||||||
| Interest-Earning Assets: | ||||||||||||||||||||||||||
| Cash and Investments: | ||||||||||||||||||||||||||
| Taxable investment securities | $ | 337,933 | $ | 376,206 | $ | 365,043 | $ | 1,078 | $ | 1,256 | $ | 1,393 | 1.28 | % | 1.34 | % | 1.53 | % | ||||||||
| Non-taxable investment securities (5) | 186,030 | 194,410 | 187,379 | 1,174 | 1,323 | 1,401 | 2.52 | % | 2.72 | % | 2.99 | % | ||||||||||||||
| Mortgage-backed securities | 245,043 | 251,989 | 228,578 | 1,604 | 1,603 | 1,841 | 2.62 | % | 2.54 | % | 3.22 | % | ||||||||||||||
| Federal funds sold and other | 122,977 | 130,771 | 461,832 | 72 | 149 | 281 | 0.24 | % | 0.46 | % | 0.24 | % | ||||||||||||||
| Total Cash and Investments | 891,983 | 953,376 | 1,242,832 | 3,928 | 4,331 | 4,916 | 1.76 | % | 1.82 | % | 1.58 | % | ||||||||||||||
| Loans: (6) | ||||||||||||||||||||||||||
| Commercial and Construction (5) | 2,691,458 | 2,591,377 | 2,400,681 | 34,470 | 32,693 | 33,819 | 5.15 | % | 5.07 | % | 5.49 | % | ||||||||||||||
| Residential Mortgage | 1,926,628 | 1,857,838 | 1,742,769 | 17,979 | 17,826 | 19,131 | 3.73 | % | 3.84 | % | 4.39 | % | ||||||||||||||
| Home Equity and Other Consumer | 292,353 | 320,160 | 316,268 | 2,336 | 2,760 | 2,983 | 3.23 | % | 3.45 | % | 3.76 | % | ||||||||||||||
| Total Loans | 4,910,439 | 4,769,375 | 4,459,718 | 54,785 | 53,279 | 55,933 | 4.48 | % | 4.48 | % | 4.94 | % | ||||||||||||||
| Total Earning Assets | 5,802,422 | 5,722,751 | 5,702,550 | 58,713 | 57,610 | 60,849 | 4.06 | % | 4.04 | % | 4.21 | % | ||||||||||||||
| LESS: Allowance for Loan Losses | 100,236 | 97,471 | 103,233 | |||||||||||||||||||||||
| Cash and due From Banks (Non-Interest Bearing) | 73,153 | 112,844 | 31,690 | |||||||||||||||||||||||
| Other Assets (7) | 405,190 | 427,083 | 460,181 | |||||||||||||||||||||||
| TOTAL AVERAGE ASSETS | $ | 6,180,529 | $ | 6,165,207 | $ | 6,091,188 | ||||||||||||||||||||
| AVERAGE LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS, AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||
| Interest-Bearing Liabilities: | ||||||||||||||||||||||||||
| Deposits: | ||||||||||||||||||||||||||
| Savings and NOW | $ | 501,759 | $ | 533,075 | $ | 517,271 | $ | 201 | $ | 331 | $ | 358 | 0.16 | % | 0.25 | % | 0.28 | % | ||||||||
| Money Market | 2,067,625 | 1,983,558 | 1,910,004 | 2,147 | 2,136 | 2,787 | 0.42 | % | 0.43 | % | 0.59 | % | ||||||||||||||
| Certificates of Deposit | 837,295 | 898,458 | 1,029,713 | 2,087 | 2,436 | 3,156 | 1.00 | % | 1.09 | % | 1.23 | % | ||||||||||||||
| Total Deposits | 3,406,679 | 3,415,091 | 3,456,988 | 4,435 | 4,903 | 6,301 | 0.52 | % | 0.58 | % | 0.73 | % | ||||||||||||||
| Junior Subordinated Debentures | 177,566 | 180,817 | 192,416 | 1,690 | 1,752 | 1,905 | 3.77 | % | 3.83 | % | 3.96 | % | ||||||||||||||
| FHLB Borrowings and Other | 707,315 | 709,611 | 644,084 | 4,187 | 4,379 | 4,780 | 2.34 | % | 2.44 | % | 2.94 | % | ||||||||||||||
| Total Interest-Bearing Liabilities | 4,291,560 | 4,305,519 | 4,293,488 | 10,312 | 11,034 | 12,986 | 0.96 | % | 1.02 | % | 1.21 | % | ||||||||||||||
| Noninterest Bearing Demand Deposits | 1,190,428 | 1,167,623 | 1,128,330 | |||||||||||||||||||||||
| Payables and Other Liabilities (7) | 109,578 | 106,536 | 118,707 | |||||||||||||||||||||||
| Total Average Liabilities | 5,591,566 | 5,579,678 | 5,540,525 | |||||||||||||||||||||||
| Redeemable Noncontrolling Interests | 20,254 | 21,701 | 20,613 | |||||||||||||||||||||||
| Average Shareholders' Equity | 568,709 | 563,828 | 530,050 | |||||||||||||||||||||||
| TOTAL AVERAGE LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS, AND SHAREHOLDERS' EQUITY | $ | 6,180,529 | $ | 6,165,207 | $ | 6,091,188 | ||||||||||||||||||||
| Net Interest Income - on a Fully Taxable Equivalent Basis (FTE) | $ | 48,401 | $ | 46,576 | $ | 47,863 | ||||||||||||||||||||
| LESS: FTE Adjustment (5) | 1,805 | 1,808 | 1,829 | |||||||||||||||||||||||
| Net Interest Income (GAAP Basis) | $ | 46,596 | $ | 44,768 | $ | 46,034 | ||||||||||||||||||||
| Interest Rate Spread | 3.10 | % | 3.02 | % | 3.00 | % | ||||||||||||||||||||
| Net Interest Margin | 3.35 | % | 3.27 | % | 3.30 | % | ||||||||||||||||||||
9
Boston Private Financial Holdings, Inc.
Selected Financial Data (Unaudited)
| Average Balance | Interest Income/Expense | Average Yield/Rate | ||||||||||||||||
| (In Thousands) | Six Months Ended | Six Months Ended | Six Months Ended | |||||||||||||||
| AVERAGE BALANCE SHEET: | June 30, 2012 | June 30, 2011 | June 30, 2012 | June 30, 2011 | June 30, 2012 | June 30, 2011 | ||||||||||||
| AVERAGE ASSETS | ||||||||||||||||||
| Interest-Earning Assets: | ||||||||||||||||||
| Cash and Investments: | ||||||||||||||||||
| Taxable investment securities | $ | 357,533 | $ | 361,988 | $ | 2,335 | $ | 2,773 | 1.31 | % | 1.52 | % | ||||||
| Non-taxable investment securities (5) | 190,220 | 194,789 | 2,497 | 3,043 | 2.63 | % | 3.12 | % | ||||||||||
| Mortgage-backed securities | 248,516 | 231,887 | 3,206 | 3,648 | 2.58 | % | 3.15 | % | ||||||||||
| Federal funds sold and other | 126,477 | 497,028 | 221 | 600 | 0.35 | % | 0.24 | % | ||||||||||
| Total Cash and Investments | 922,746 | 1,285,692 | 8,259 | 10,064 | 1.79 | % | 1.57 | % | ||||||||||
| Loans: (6) | ||||||||||||||||||
| Commercial and Construction (5) | 2,641,302 | 2,423,320 | 67,164 | 66,134 | 5.11 | % | 5.42 | % | ||||||||||
| Residential Mortgage | 1,892,347 | 1,714,044 | 35,806 | 37,860 | 3.78 | % | 4.42 | % | ||||||||||
| Home Equity and Other Consumer | 306,260 | 306,302 | 5,096 | 5,863 | 3.35 | % | 3.84 | % | ||||||||||
| Total Loans | 4,839,909 | 4,443,666 | 108,066 | 109,857 | 4.48 | % | 4.93 | % | ||||||||||
| Total Earning Assets | 5,762,655 | 5,729,358 | 116,325 | 119,921 | 4.05 | % | 4.17 | % | ||||||||||
| LESS: Allowance for Loan Losses | 98,854 | 101,460 | ||||||||||||||||
| Cash and due From Banks (Non-Interest Bearing) | 88,808 | 32,644 | ||||||||||||||||
| Other Assets (7) | 431,091 | 462,570 | ||||||||||||||||
| TOTAL AVERAGE ASSETS | $ | 6,183,700 | $ | 6,123,112 | ||||||||||||||
| AVERAGE LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS, AND SHAREHOLDERS' EQUITY | ||||||||||||||||||
| Interest-Bearing Liabilities: | ||||||||||||||||||
| Deposits: | ||||||||||||||||||
| Savings and NOW | $ | 517,291 | $ | 529,671 | $ | 532 | $ | 732 | 0.21 | % | 0.28 | % | ||||||
| Money Market | 2,020,871 | 1,873,025 | 4,283 | 5,602 | 0.43 | % | 0.60 | % | ||||||||||
| Certificates of Deposit | 882,885 | 1,056,952 | 4,523 | 6,617 | 1.03 | % | 1.26 | % | ||||||||||
| Total Deposits | 3,421,047 | 3,459,648 | 9,338 | 12,951 | 0.55 | % | 0.75 | % | ||||||||||
| Junior Subordinated Debentures | 179,355 | 192,938 | 3,443 | 3,797 | 3.80 | % | 3.94 | % | ||||||||||
| FHLB Borrowings and Other | 708,463 | 670,910 | 8,566 | 9,693 | 2.39 | % | 2.87 | % | ||||||||||
| Total Interest-Bearing Liabilities | 4,308,865 | 4,323,496 | 21,347 | 26,441 | 0.99 | % | 1.23 | % | ||||||||||
| Noninterest Bearing Demand Deposits | 1,175,414 | 1,135,483 | ||||||||||||||||
| Payables and Other Liabilities (7) | 111,551 | 118,575 | ||||||||||||||||
| Total Average Liabilities | 5,595,830 | 5,577,554 | ||||||||||||||||
| Redeemable Noncontrolling Interests | 20,886 | 20,241 | ||||||||||||||||
| Average Shareholders' Equity | 566,984 | 525,317 | ||||||||||||||||
| TOTAL AVERAGE LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS, AND SHAREHOLDERS' EQUITY | $ | 6,183,700 | $ | 6,123,112 | ||||||||||||||
| Net Interest Income - on a Fully Taxable Equivalent Basis (FTE) | $ | 94,978 | $ | 93,480 | ||||||||||||||
| LESS: FTE Adjustment (5) | 3,614 | 3,735 | ||||||||||||||||
| Net Interest Income (GAAP Basis) | $ | 91,364 | $ | 89,745 | ||||||||||||||
| Interest Rate Spread | 3.06 | % | 2.94 | % | ||||||||||||||
| Net Interest Margin | 3.31 | % | 3.25 | % | ||||||||||||||
10
Boston Private Financial Holdings, Inc.
Selected Financial Data (Unaudited)
| (In Thousands) | June 30, 2012 | March 31, 2012 | June 30, 2011 | ||||||||
| LOAN DATA (8): | |||||||||||
| Commercial and Industrial Loans: | |||||||||||
| New England | $ | 666,145 | $ | 572,091 | $ | 480,452 | |||||
| San Francisco Bay | 66,586 | 74,100 | 60,065 | ||||||||
| Southern California | 38,625 | 39,508 | 45,001 | ||||||||
| Pacific Northwest | 47,014 | 41,462 | 34,326 | ||||||||
| Eliminations and other, net | — | — | (116 | ) | |||||||
| Total Commercial and Industrial Loans | $ | 818,370 | $ | 727,161 | $ | 619,728 | |||||
| Commercial Real Estate Loans: | |||||||||||
| New England | $ | 663,038 | $ | 667,014 | $ | 625,328 | |||||
| San Francisco Bay | 679,358 | 691,644 | 670,469 | ||||||||
| Southern California | 335,924 | 282,407 | 170,496 | ||||||||
| Pacific Northwest | 145,253 | 136,105 | 102,295 | ||||||||
| Total Commercial Real Estate Loans | $ | 1,823,573 | $ | 1,777,170 | $ | 1,568,588 | |||||
| Construction and Land Loans: | |||||||||||
| New England | $ | 108,874 | $ | 99,387 | $ | 78,149 | |||||
| San Francisco Bay | 44,628 | 40,390 | 42,286 | ||||||||
| Southern California | 7,492 | 5,899 | 3,215 | ||||||||
| Pacific Northwest | 3,128 | 3,979 | 6,920 | ||||||||
| Total Construction and Land Loans | $ | 164,122 | $ | 149,655 | $ | 130,570 | |||||
| Residential Mortgage Loans: | |||||||||||
| New England | $ | 1,247,117 | $ | 1,246,700 | $ | 1,217,654 | |||||
| San Francisco Bay | 392,340 | 335,753 | 321,110 | ||||||||
| Southern California | 281,113 | 231,284 | 177,320 | ||||||||
| Pacific Northwest | 71,117 | 65,411 | 51,587 | ||||||||
| Total Residential Mortgage Loans | $ | 1,991,687 | $ | 1,879,148 | $ | 1,767,671 | |||||
| Home Equity Loans: | |||||||||||
| New England | $ | 84,790 | $ | 85,388 | $ | 91,041 | |||||
| San Francisco Bay | 41,557 | 43,064 | 52,132 | ||||||||
| Southern California | 7,484 | 6,500 | 4,910 | ||||||||
| Pacific Northwest | 2,727 | 4,006 | 5,445 | ||||||||
| Total Home Equity Loans | $ | 136,558 | $ | 138,958 | $ | 153,528 | |||||
| Other Consumer Loans: | |||||||||||
| New England | $ | 135,221 | $ | 152,190 | $ | 140,006 | |||||
| San Francisco Bay | 11,992 | 11,787 | 14,330 | ||||||||
| Southern California | 7,570 | 9,376 | 12,199 | ||||||||
| Pacific Northwest | 1,338 | 1,472 | 1,180 | ||||||||
| Eliminations and other, net | 697 | 2,131 | 2,640 | ||||||||
| Total Other Consumer Loans | $ | 156,818 | $ | 176,956 | $ | 170,355 | |||||
| Total Loans | |||||||||||
| New England | $ | 2,905,185 | $ | 2,822,770 | $ | 2,632,630 | |||||
| San Francisco Bay | 1,236,461 | 1,196,738 | 1,160,392 | ||||||||
| Southern California | 678,208 | 574,974 | 413,141 | ||||||||
| Pacific Northwest | 270,577 | 252,435 | 201,753 | ||||||||
| Eliminations and other, net | 697 | 2,131 | 2,524 | ||||||||
| Total Loans | $ | 5,091,128 | $ | 4,849,048 | $ | 4,410,440 | |||||
11
Boston Private Financial Holdings, Inc.
Selected Financial Data (Unaudited)
| (In Thousands) | June 30, 2012 | March 31, 2012 | June 30, 2011 | ||||||||
| CREDIT QUALITY (8): | |||||||||||
| Special Mention Loans: | |||||||||||
| New England | $ | 35,308 | $ | 53,929 | $ | 55,051 | |||||
| San Francisco Bay | 31,508 | 40,655 | 68,262 | ||||||||
| Southern California | 20,544 | 24,784 | 16,158 | ||||||||
| Pacific Northwest | 5,573 | 8,925 | 17,029 | ||||||||
| Total Special Mention Loans | $ | 92,933 | $ | 128,293 | $ | 156,500 | |||||
| Accruing Classified Loans (9): | |||||||||||
| New England | $ | 50,343 | $ | 25,002 | $ | 17,213 | |||||
| San Francisco Bay | 62,736 | 57,629 | 57,420 | ||||||||
| Southern California | 20,098 | 19,374 | 25,145 | ||||||||
| Pacific Northwest | 5,084 | 3,317 | 3,697 | ||||||||
| Total Accruing Classified Loans | $ | 138,261 | $ | 105,322 | $ | 103,475 | |||||
| Nonaccruing Loans: | |||||||||||
| New England | $ | 29,733 | $ | 34,629 | $ | 29,095 | |||||
| San Francisco Bay | 28,350 | 28,721 | 31,753 | ||||||||
| Southern California | 7,273 | 7,572 | 13,226 | ||||||||
| Pacific Northwest | 2,001 | 1,744 | 5,868 | ||||||||
| Total Nonaccruing Loans | $ | 67,357 | $ | 72,666 | $ | 79,942 | |||||
| Other Real Estate Owned: | |||||||||||
| New England | $ | 191 | $ | 98 | $ | 1,498 | |||||
| San Francisco Bay | 2,383 | 2,194 | 10,974 | ||||||||
| Southern California | — | 1,114 | 345 | ||||||||
| Pacific Northwest | 480 | 480 | 1,668 | ||||||||
| Total Other Real Estate Owned | $ | 3,054 | $ | 3,886 | $ | 14,485 | |||||
| Loans 30-89 Days Past Due and Accruing: | |||||||||||
| New England (10) | $ | 3,272 | $ | 5,304 | $ | 3,060 | |||||
| San Francisco Bay | 7,270 | 10,824 | 2,304 | ||||||||
| Southern California | 3,058 | 5,130 | 1,137 | ||||||||
| Pacific Northwest | 565 | 99 | — | ||||||||
| Total Loans 30-89 Days Past Due and Accruing | $ | 14,165 | $ | 21,357 | $ | 6,501 | |||||
| Loans (Charged-off)/ Recovered, Net for the Three Months Ended: | |||||||||||
| New England | $ | (576 | ) | $ | (341 | ) | $ | (127 | ) | ||
| San Francisco Bay | 117 | (1,980 | ) | (2,036 | ) | ||||||
| Southern California | (38 | ) | (72 | ) | 3,552 | ||||||
| Pacific Northwest | (51 | ) | 181 | (739 | ) | ||||||
| Total Net Loans (Charged-off)/ Recovered | $ | (548 | ) | $ | (2,212 | ) | $ | 650 | |||
| Loans (Charged-off)/ Recovered, Net for the Six Months Ended: | |||||||||||
| New England | $ | (917 | ) | $ | (1,401 | ) | |||||
| San Francisco Bay | (1,863 | ) | (13,325 | ) | |||||||
| Southern California | (110 | ) | 4,638 | ||||||||
| Pacific Northwest | 130 | (733 | ) | ||||||||
| Total Net Loans (Charged-off)/ Recovered | $ | (2,760 | ) | $ | (10,821 | ) | |||||
12
Boston Private Financial Holdings, Inc.
Selected Financial Data
(Unaudited)
FOOTNOTES:
| (1) | In the second quarter of 2012, the Company completed the sale of its affiliate Davidson Trust Company. 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) | When the Company has positive Net Income from Continuing Operations Attributable to the Common Shareholders, 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 non-participating restricted stock, unexercised stock warrants, and unconverted Convertible Trust Preferred securities. The amount of shares that were anti-dilutive for the three and six months ended June 30, 2012 was 1.3 million in both periods. The amount of shares that were anti-dilutive for the three and six months ended June 30, 2011 were 1.7 million in both periods. The amount of shares that were anti-dilutive for the three months ended March 31, 2012 was 1.4 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 for the year ended December 31, 2011 for additional information. |
| (3) | Adjustments to Net Income/(Loss) Attributable to the Company to arrive at Net Income/(Loss) Attributable to the Common Shareholders, as presented in these tables, include decrease/ (increase) in Noncontrolling Interests Redemption Value and Dividends on Participating Securities. |
| (4) | 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, except per share data) | June 30, 2012 | March 31, 2012 | June 30, 2011 | ||||||||
| Total Balance Sheet Assets | $ | 6,264,243 | $ | 6,148,562 | $ | 6,037,778 | |||||
| LESS: Goodwill and Intangible Assets, net * | (136,569 | ) | (144,456 | ) | (147,952 | ) | |||||
| Tangible Assets (non-GAAP) | 6,127,674 | 6,004,106 | 5,889,826 | ||||||||
| Total Equity | 575,622 | 561,541 | 538,970 | ||||||||
| LESS: Goodwill and Intangible Assets, net | (136,569 | ) | (144,456 | ) | (147,952 | ) | |||||
| ADD: Difference between Redemption Value of Non-controlling Interests and value under ARB 51 | 13,937 | 14,319 | 14,170 | ||||||||
| Total adjusting items | (122,632 | ) | (130,137 | ) | (133,782 | ) | |||||
| Tangible Common Equity (non-GAAP) | 452,990 | 431,404 | 405,188 | ||||||||
| Total Equity/Total Assets | 9.19 | % | 9.13 | % | 8.93 | % | |||||
| Tangible Common Equity/Tangible Assets (non-GAAP) | 7.39 | % | 7.19 | % | 6.88 | % | |||||
| Total Risk Weighted Assets ** | 4,589,718 | 4,410,389 | 3,965,672 | ||||||||
| Tangible Common Equity/Total Risk Weighted Assets (non-GAAP) | 9.87 | % | 9.78 | % | 10.22 | % | |||||
| End of Period Shares Outstanding | 78,822 | 78,152 | 77,942 | ||||||||
| EOP Carlyle Common Convertible Shares | 7,261 | 7,261 | 7,261 | ||||||||
| Common Equivalent Shares | 86,084 | 85,413 | 85,203 | ||||||||
| Book Value Per Common Share | $ | 6.57 | $ | 6.44 | $ | 6.17 | |||||
| Tangible Book Value Per Share (non-GAAP) | $ | 5.26 | $ | 5.05 | $ | 4.76 | |||||
* For the TCE to TA ratio, Goodwill and Intangible Assets, net includes Goodwill and Intangible Assets of discontinued operations for March 31, 2012 and June 30, 2011, which are included on the consolidated balance sheet with Assets of Discontinued Operations.
** Risk Weighted Assets for June 30, 2012 is presented based on estimated data.
13
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) | June 30, 2012 | March 31, 2012 | June 30, 2011 | ||||||||
| Net income/(loss) attributable to the Company (GAAP) | $ | 14,161 | $ | 9,505 | $ | 14,545 | |||||
| ADD BACK: Provision/ (credit) for loan losses | 1,700 | 4,000 | (2,190 | ) | |||||||
| ADD BACK: Income tax expense/(benefit) | 5,240 | 3,851 | 4,197 | ||||||||
| Pre-tax, pre-provision earnings (Non-GAAP) | $ | 21,101 | $ | 17,356 | $ | 16,552 | |||||
| Total operating expense (GAAP) | $ | 55,335 | $ | 55,627 | $ | 60,910 | |||||
| LESS: Restructuring expense | 564 | 135 | 4,304 | ||||||||
| Total operating expenses (excluding restructuring costs) (Non-GAAP) | $ | 54,771 | $ | 55,492 | $ | 56,606 | |||||
| (5) | Interest Income on Non-taxable Investments and Loans are presented on an FTE basis using the federal statutory rate of 35% for each period presented. |
| (6) | Includes Loans Held for Sale and Nonaccrual Loans. |
| (7) | Assets and liabilities of discontinued operations are included in other assets and other liabilities in the average balance sheet presentation. |
| (8) | The concentration of the Private Banking loan data and credit quality is based on the location of the lender's regional offices. 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”. |
| (9) | 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 nonaccrual at some time in the future. |
| (10) | In addition to loans 30-89 days past due and accruing, at June 30, 2012 and March 31, 2012, the Company had two loans totaling less than $0.1 million that were more than 90 days past due but still on accrual status. These loans originated in the New England region. There were no loans more than 90 days past due and still on accrual status at June 30, 2011. |
14