Boston Private Financial Holdings, Inc. Reports Third Quarter 2015 GAAP EPS of $0.16
Third Quarter Highlights:
| |
| • | Revenue Growth: Total Revenue increased 9% year-over-year and was down 2% on a linked quarter basis at $85.9 million. Year-over-year, Net Interest Income and Core Fees were up $1.7 million and $5.9 million, respectively. On a linked quarter basis, a $1.4 million increase in Net Interest Income was offset by a $0.9 million decline in Core Fees and a $2.3 million reduction in Other Income. |
| |
| • | Deposit and Loan Growth: Average Total Deposits increased 10% year-over-year to $5.7 billion. On a linked quarter basis, Average Total Deposits increased 7%, while Average Total Loans grew 7% year-over-year and 4% linked quarter. The Average Loan-to-Deposit ratio was 96% at the end of the third quarter, down from 98% in the third quarter of 2014. |
| |
| • | Assets Under Management: Total Assets Under Management/Advisory (“AUM”) increased 11% year-over-year to $27.4 billion, reflecting the acquisition of Banyan Partners, partially offset by negative net flows and market action. On a linked quarter basis, AUM were down 8% due to negative net flows and market action. |
| |
| • | Provision for Loan Loss: The Company recorded a $2.6 million provision expense driven by strong commercial loan growth and net charge-offs of $1.6 million. |
Boston, MA - October 21, 2015 - Boston Private Financial Holdings, Inc. (NASDAQ: BPFH) (the “Company” or “BPFH”) today reported third quarter 2015 GAAP Net Income Attributable to the Company of $13.5 million, compared to $17.6 million for the second quarter of 2015. Third quarter 2015 diluted earnings per share were $0.16, compared to $0.20 in the second quarter of 2015, and $0.22 in the third quarter of 2014.
“Performance was mixed across our business segments in the third quarter,” said Clayton G. Deutsch, CEO. “The Private Bank continued to generate strong growth within our key client segments across all of our regions while AUM was lower linked quarter due to the impact of employee transitions at Boston Private Wealth, sector-based headwinds affecting the Investment Managers and heightened market volatility, which weighed on all segments of our Wealth Management business.”
Core Fees and Income
Core Fees and Income increased 18% year-over-year to $39.4 million. The increase reflects revenue from Banyan Partners, which was acquired in October 2014. On a linked quarter basis, Core Fees and Income decreased 2% reflecting lower levels of Assets Under Management.
Total Assets Under Management decreased to $27.4 billion in the third quarter, down 8% from $29.6 billion in the second quarter of 2015. AUM increased 11% year-over-year. The year-over-year increase includes AUM related to the Banyan Partners acquisition, partially offset by negative market action and net outflows. The Company experienced third quarter 2015 AUM net outflows of $751 million, as compared to second quarter 2015 AUM net outflows of $193 million. AUM net outflows for the third quarter 2014 were $211 million. AUM net outflows for the year to date 2015 were $1.3 billion as compared to net outflows of $194 million for the same period of 2014.
Net Interest Income
Net Interest Income for the third quarter was $46.5 million, up 3% from $45.1 million for the second quarter of 2015. On a year-over-year basis, Net Interest Income increased 4% from $44.8 million. The current quarter includes $0.3 million of interest recovered on previous non-accrual loans while the second quarter of 2015 and the third quarter of 2014 include recoveries of $0.1 million and $0.8 million, respectively. Excluding interest recovered on previous non-accrual loans, Net Interest Income increased 3% linked quarter and 6% year-over-year.
Net Interest Margin was 2.84% for the third quarter, down six basis points from 2.90% for the second quarter of 2015. Net Interest Margin was down nine basis points from 2.93% in the third quarter of 2014. Excluding interest recovered on previous nonaccrual loans, Net Interest Margin was down eight basis points linked quarter and down six basis points year-over-year.
Other Income
Other income was a loss of $37,000 in the third quarter of 2015 compared to $2.3 million in the second quarter of 2015. The linked quarter decrease in other income reflects the impact of mark-to-market adjustments on loan swaps, a lower market value adjustment related to the earnout of the Banyan Partners acquisition, and lower gains on partnership investments.
Total Operating Expenses
Total Operating Expenses for the third quarter of 2015 were $61.9 million, down 1% from $62.4 million for the second quarter of 2015. On a year-over-year basis, Total Operating Expenses increased 15% from $54.0 million, primarily due to the impact of the Banyan Partners acquisition. The third and second quarters of 2015 include Restructuring Expense of $1.5 million and $0.2 million, respectively. Excluding Restructuring Expense, Total Operating Expenses decreased 3% linked quarter and increased 12% year-over-year.
Provision and Asset Quality
The Company recorded a provision expense of $2.6 million for the third quarter of 2015, compared to no provision for the second quarter of 2015. The provision expense was driven by strong commercial loan growth and $1.6 million of net charge-offs.
Criticized Loans decreased 4% on a linked quarter basis and 10% year-over-year. Nonaccrual Loans (“Nonaccruals”) increased 3% to $30.7 million on a linked quarter basis. On a year-over-year basis, Nonaccruals decreased 8% from $33.5 million. As a percentage of Total Loans, Nonaccruals were 55 basis points at September 30, 2015, flat from June 30, 2015, and down 9 basis points from September 30, 2014.
Additional credit metrics are listed below on a linked quarter and year-over-year basis:
|
| | | | | | | | | | | |
| (In millions) | September 30,
2015 | | June 30,
2015 | | September 30,
2014 |
| Total Criticized Loans | $ | 160.9 |
| | $ | 167.3 |
| | $ | 179.5 |
|
Total Loans 30-89 Days Past Due and Accruing (12) | $ | 7.0 |
| | $ | 4.3 |
| | $ | 3.6 |
|
| Total Net Loans (Charged-off)/ Recovered | $ | (1.6 | ) | | $ | 1.0 |
| | $ | 3.3 |
|
| Allowance for Loan Losses/ Total Loans | 1.41 | % | | 1.43 | % | | 1.44 | % |
Capital Ratios
Capital ratios are listed below on a linked quarter and year-over-year basis:
|
| | | | | | | | |
| | September 30,
2015 | | June 30,
2015 | | September 30,
2014 |
| BPFH Ratios: | | | | | |
| Total Risk-Based Capital * | 13.8 | % | | 13.9 | % | | 14.8 | % |
| Tier I Risk-Based Capital * | 12.6 | % | | 12.7 | % | | 13.5 | % |
| Tier I Leverage Capital * | 9.6 | % | | 9.9 | % | | 10.3 | % |
| TCE/TA | 7.2 | % | | 7.2 | % | | 7.6 | % |
| Tier I Common Equity/ Risk Weighted Assets * | 9.7 | % | | 9.8 | % | | 10.1 | % |
*September 30, 2015 information is presented based on estimated data.
Dividend Payments
Concurrent with the release of third quarter 2015 earnings, the Board of Directors of the Company declared a cash dividend to common stock shareholders of $0.09 per share. The record date for this dividend is November 6, 2015, and the payment date is November 20, 2015.
The Board of Directors of the Company also declared a cash dividend to holders of the Non-Cumulative Perpetual Preferred Stock, Series D of $17.375 per share, which will result in a dividend of $0.434375 per depositary share. The record date for this dividend is November 16, 2015, and the payment date is December 15, 2015.
Non-GAAP Financial Measures
The Company uses certain non-GAAP financial measures, such as tangible book value per share; the TCE/TA ratio; return on average common equity; return on average tangible common equity; pre-tax, pre-provision earnings; total operating expense excluding restructuring; the efficiency ratio (FTE basis); and Net Interest Income and Net Interest Margin excluding interest recovered on previous non-accrual loans; 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, October 22, 2015, to discuss the financial results, business highlights and outlook. To access the call:
Dial In #: (888) 317-6003
Elite Entry Number: 0566270
Replay Information:
Available from October 22, 2015 at 12 noon until October 29, 2015
Dial In #: (877) 344-7529
Conference Number: 10073575
The call will be simultaneously webcast and may be accessed on www.bostonprivatefinancial.com
Boston Private Financial Holdings, Inc.
Boston Private Financial Holdings, Inc. is a national financial services organization that owns Wealth Management and Private Banking affiliates with offices in Boston, New York, Los Angeles, San Francisco, San Jose, Atlanta, Florida, Wisconsin, and Texas. The Company has a $7 billion Private Banking balance sheet, and manages over $27 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.bostonprivatefinancial.com.
Forward-Looking Statements
Certain statements in this press release that are not historical facts may constitute 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 weakness in general economic conditions on a national basis or in the local markets in which the Company operates; 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; changes in government regulation; 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, dispositions and restructurings; 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. Forward-looking statements speak only as of the date on which they are made. 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 statement is made.
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 wholly-owned subsidiary of BPFH. The information reported in this press release is related to the performance and results of BPFH.
###
CONTACT:
Steven Gaven
Vice President Corporate Finance and Director of Investor Relations
Boston Private Financial Holdings, Inc.
(617) 912-3793
sgaven@bostonprivate.com
Boston Private Financial Holdings, Inc.
Selected Financial Data (Unaudited)
|
| | | | | | | | | | | |
| | September 30, 2015 | | June 30, 2015 | | September 30, 2014 |
| | (In thousands, except share and per share data) |
| Assets: | | | | | |
| Cash and cash equivalents | $ | 43,640 |
| | $ | 63,099 |
| | $ | 308,912 |
|
| Investment securities available for sale | 1,023,255 |
| | 992,007 |
| | 724,638 |
|
| Investment securities held to maturity | 121,679 |
| | 128,258 |
| | 132,467 |
|
| Stock in Federal Home Loan Banks | 35,518 |
| | 35,668 |
| | 32,534 |
|
| Loans held for sale | 7,685 |
| | 19,512 |
| | 4,943 |
|
| Total loans | 5,607,472 |
| | 5,463,250 |
| | 5,213,491 |
|
| Less: Allowance for loan losses | 79,246 |
| | 78,251 |
| | 75,283 |
|
| Net loans | 5,528,226 |
| | 5,384,999 |
| | 5,138,208 |
|
| Other real estate owned (“OREO”) | 776 |
| | 929 |
| | 1,074 |
|
| Premises and equipment, net | 30,841 |
| | 31,337 |
| | 29,473 |
|
| Goodwill | 152,082 |
| | 152,082 |
| | 110,180 |
|
| Intangible assets, net | 34,806 |
| | 36,461 |
| | 17,475 |
|
| Fees receivable | 11,308 |
| | 12,486 |
| | 11,439 |
|
| Accrued interest receivable | 17,039 |
| | 16,383 |
| | 15,018 |
|
| Deferred income taxes, net | 45,438 |
| | 47,388 |
| | 48,443 |
|
| Other assets | 128,235 |
| | 125,330 |
| | 114,281 |
|
| Total assets | $ | 7,180,528 |
| | $ | 7,045,939 |
| | $ | 6,689,085 |
|
| Liabilities: | | | | | |
| Deposits | $ | 5,647,859 |
| | $ | 5,429,028 |
| | $ | 5,334,881 |
|
| Securities sold under agreements to repurchase | 35,698 |
| | 26,660 |
| | 73,422 |
|
| Federal funds purchased | 60,000 |
| | 100,000 |
| | — |
|
| Federal Home Loan Bank borrowings | 461,899 |
| | 541,529 |
| | 371,367 |
|
| Junior subordinated debentures | 106,363 |
| | 106,363 |
| | 106,363 |
|
| Other liabilities | 109,695 |
| | 95,074 |
| | 106,024 |
|
| Total liabilities | 6,421,514 |
| | 6,298,654 |
| | 5,992,057 |
|
| Redeemable Noncontrolling Interests | 18,257 |
| | 19,200 |
| | 21,397 |
|
| Shareholders’ Equity: | | | | | |
| Preferred stock, $1.00 par value; authorized: 2,000,000 shares | 47,753 |
| | 47,753 |
| | 47,753 |
|
| Common stock, $1.00 par value; authorized: 170,000,000 shares; issued and outstanding: 83,645,364 shares at September 30, 2015; 83,539,785 shares at June 30, 2015; 80,464,390 shares at September 30, 2014 | 83,645 |
| | 83,540 |
| | 80,464 |
|
| Additional paid-in capital | 598,968 |
| | 597,424 |
| | 598,036 |
|
| Retained earnings/ (accumulated deficit) | 5,960 |
| | (1,003 | ) | | (49,573 | ) |
| Accumulated other comprehensive income/ (loss) | 1,287 |
| | (2,525 | ) | | (1,312 | ) |
| Total Company’s shareholders’ equity | 737,613 |
| | 725,189 |
| | 675,368 |
|
| Noncontrolling interests | 3,144 |
| | 2,896 |
| | 263 |
|
| Total shareholders’ equity | 740,757 |
| | 728,085 |
| | 675,631 |
|
| Total liabilities, redeemable noncontrolling interests and shareholders’ equity | $ | 7,180,528 |
| | $ | 7,045,939 |
| | $ | 6,689,085 |
|
Boston Private Financial Holdings, Inc.
Selected Financial Data (Unaudited)
|
| | | | | | | | | | | | | | | | | | | |
| | Three Months Ended | | Nine Months Ended |
| | September 30,
2015 | | June 30,
2015 | | September 30,
2014 | | September 30,
2015 | | September 30,
2014 |
| Interest and dividend income: | (In thousands, except share and per share data) |
| Loans | $ | 48,058 |
| | $ | 46,663 |
| | $ | 47,931 |
| | $ | 142,721 |
| | $ | 144,541 |
|
| Taxable investment securities | 1,094 |
| | 1,075 |
| | 876 |
| | 3,164 |
| | 2,242 |
|
| Non-taxable investment securities | 1,264 |
| | 1,125 |
| | 942 |
| | 3,410 |
| | 2,760 |
|
| Mortgage-backed securities | 2,681 |
| | 2,775 |
| | 1,605 |
| | 8,070 |
| | 5,230 |
|
| Federal funds sold and other | 425 |
| | 282 |
| | 379 |
| | 941 |
| | 978 |
|
| Total interest and dividend income | 53,522 |
| | 51,920 |
| | 51,733 |
| | 158,306 |
| | 155,751 |
|
| Interest expense: | | | | | | | | | |
| Deposits | 4,007 |
| | 3,822 |
| | 3,603 |
| | 11,721 |
| | 10,194 |
|
| Federal Home Loan Bank borrowings | 2,051 |
| | 2,017 |
| | 2,354 |
| | 5,999 |
| | 7,039 |
|
| Junior subordinated debentures | 979 |
| | 967 |
| | 976 |
| | 2,902 |
| | 2,896 |
|
| Repurchase agreements and other short-term borrowings | 12 |
| | 29 |
| | 17 |
| | 54 |
| | 49 |
|
| Total interest expense | 7,049 |
| | 6,835 |
| | 6,950 |
| | 20,676 |
| | 20,178 |
|
| Net interest income | 46,473 |
| | 45,085 |
| | 44,783 |
| | 137,630 |
| | 135,573 |
|
| Provision/ (credit) for loan losses | 2,600 |
| | — |
| | (2,600 | ) | | 100 |
| | (8,800 | ) |
| Net interest income after provision/ (credit) for loan losses | 43,873 |
| | 45,085 |
| | 47,383 |
| | 137,530 |
| | 144,373 |
|
| Fees and other income: | | | | | | | | | |
| Investment management fees | 11,360 |
| | 11,731 |
| | 12,011 |
| | 34,805 |
| | 35,226 |
|
| Wealth advisory fees | 12,515 |
| | 12,678 |
| | 12,278 |
| | 37,868 |
| | 35,730 |
|
| Wealth management and trust fees | 12,424 |
| | 13,545 |
| | 7,251 |
| | 39,527 |
| | 21,255 |
|
| Other banking fee income | 2,780 |
| | 2,031 |
| | 1,835 |
| | 6,721 |
| | 5,192 |
|
| Gain on sale of loans, net | 364 |
| | 362 |
| | 183 |
| | 1,029 |
| | 1,966 |
|
| Total core fees and income | 39,443 |
| | 40,347 |
| | 33,558 |
| | 119,950 |
| | 99,369 |
|
| Gain/ (loss) on sale of investments, net | 5 |
| | 8 |
| | 8 |
| | 21 |
| | 9 |
|
| Gain/ (loss) on OREO, net | 35 |
| | — |
| | 150 |
| | 124 |
| | 988 |
|
| Other | (37 | ) | | 2,305 |
| | 53 |
| | 3,356 |
| | 510 |
|
| Total other income | 3 |
| | 2,313 |
| | 211 |
| | 3,501 |
| | 1,507 |
|
| Operating expense: | | | | | | | | | |
| Salaries and employee benefits | 37,938 |
| | 39,816 |
| | 35,855 |
| | 119,881 |
| | 106,767 |
|
| Occupancy and equipment | 9,064 |
| | 9,095 |
| | 7,346 |
| | 27,194 |
| | 22,492 |
|
| Professional services | 2,848 |
| | 3,214 |
| | 2,796 |
| | 9,083 |
| | 9,165 |
|
| Marketing and business development | 2,008 |
| | 1,706 |
| | 1,408 |
| | 5,062 |
| | 5,564 |
|
| Contract services and data processing | 1,600 |
| | 1,495 |
| | 1,404 |
| | 4,532 |
| | 4,289 |
|
| Amortization of intangibles | 1,655 |
| | 1,655 |
| | 1,031 |
| | 4,912 |
| | 3,129 |
|
| FDIC insurance | 916 |
| | 963 |
| | 857 |
| | 2,890 |
| | 2,607 |
|
| Restructuring | 1,504 |
| | 220 |
| | — |
| | 1,724 |
| | — |
|
| Other | 4,396 |
| | 4,254 |
| | 3,302 |
| | 12,496 |
| | 9,356 |
|
| Total operating expense | 61,929 |
| | 62,418 |
| | 53,999 |
| | 187,774 |
| | 163,369 |
|
| Income before income taxes | 21,390 |
| | 25,327 |
| | 27,153 |
| | 73,207 |
| | 81,880 |
|
| Income tax expense | 8,182 |
| | 8,000 |
| | 8,993 |
| | 24,754 |
| | 26,464 |
|
| Net income from continuing operations | 13,208 |
| | 17,327 |
| | 18,160 |
| | 48,453 |
| | 55,416 |
|
| Net income from discontinued operations (1) | 1,316 |
| | 1,546 |
| | 1,272 |
| | 4,956 |
| | 4,650 |
|
| Net income before attribution to noncontrolling interests | 14,524 |
| | 18,873 |
| | 19,432 |
| | 53,409 |
| | 60,066 |
|
| Less: Net income attributable to noncontrolling interests | 994 |
| | 1,263 |
| | 1,167 |
| | 3,486 |
| | 3,428 |
|
| Net income attributable to the Company | $ | 13,530 |
| | $ | 17,610 |
| | $ | 18,265 |
| | $ | 49,923 |
| | $ | 56,638 |
|
Boston Private Financial Holdings, Inc.
Selected Financial Data (Unaudited)
|
| | | | | | | | | | | | | | | | | | | |
| | Three Months Ended | | Nine Months Ended |
| PER SHARE DATA: | September 30,
2015 | | June 30,
2015 | | September 30,
2014 | | September 30,
2015 | | September 30,
2014 |
| | (In thousands, except share and per share data) |
| Calculation of Income for EPS: | | | | | | | | | |
| Net income attributable to the Company | $ | 13,530 |
| | $ | 17,610 |
| | $ | 18,265 |
| | $ | 49,923 |
| | $ | 56,638 |
|
| Adjustments to Net Income Attributable to the Company to Arrive at Net Income Attributable to Common Shareholders (2) | 154 |
| | (1,064 | ) | | (796 | ) | | (1,915 | ) | | (3,052 | ) |
| Net Income Attributable to the Common Shareholders | 13,684 |
| | 16,546 |
| | 17,469 |
| | 48,008 |
| | 53,586 |
|
| LESS: Amount allocated to participating securities | (8 | ) | | (33 | ) | | (75 | ) | | (91 | ) | | (328 | ) |
| Net Income Attributable to the Common Shareholders, after allocation to participating securities | $ | 13,676 |
| | $ | 16,513 |
| | $ | 17,394 |
| | $ | 47,917 |
| | $ | 53,258 |
|
| | | | | | | | | | |
| End of Period Common Shares Outstanding | 83,645,364 |
| | 83,539,785 |
| | 80,464,390 |
| | | | |
| | | | | | | | | | |
| Weighted Average Shares Outstanding: | | | | | | | | | |
| Weighted average basic shares, including participating securities | 81,204,808 |
| | 81,074,380 |
| | 79,222,590 |
| | 81,088,511 |
| | 79,175,634 |
|
| LESS: Participating securities | (100,870 | ) | | (295,818 | ) | | (535,528 | ) | | (287,398 | ) | | (750,021 | ) |
| PLUS: Dilutive potential common shares | 2,265,257 |
| | 2,259,919 |
| | 1,923,896 |
| | 2,216,808 |
| | 1,899,015 |
|
| Weighted Average Diluted Shares (3) | 83,369,195 |
| | 83,038,481 |
| | 80,610,958 |
| | 83,017,921 |
| | 80,324,628 |
|
| | | | | | | | | | |
| Diluted Total Earnings per Share | $ | 0.16 |
| | $ | 0.20 |
| | $ | 0.22 |
| | $ | 0.58 |
| | $ | 0.66 |
|
Boston Private Financial Holdings, Inc.
Selected Financial Data (Unaudited)
|
| | | | | | | | | | | |
| (In thousands, except per share data) | September 30,
2015 | | June 30,
2015 | | September 30,
2014 |
| FINANCIAL DATA: |
| Book Value Per Common Share | $ | 8.29 |
| | $ | 8.14 |
| | $ | 7.80 |
|
| Tangible Book Value Per Share (4) | $ | 6.05 |
| | $ | 5.89 |
| | $ | 6.22 |
|
| Market Price Per Share | $ | 11.70 |
| | $ | 13.41 |
| | $ | 12.39 |
|
| | | | | | |
| ASSETS UNDER MANAGEMENT AND ADVISORY: | | | | | |
| Wealth Management and Trust | $ | 8,060,000 |
| | $ | 9,028,000 |
| | $ | 4,701,000 |
|
| Investment Managers | 9,830,000 |
| | 10,695,000 |
| | 10,376,000 |
|
| Wealth Advisory | 9,537,000 |
| | 9,941,000 |
| | 9,731,000 |
|
| Less: Inter-company Relationship | (21,000 | ) | | (22,000 | ) | | (22,000 | ) |
| Total Assets Under Management and Advisory | $ | 27,406,000 |
| | $ | 29,642,000 |
| | $ | 24,786,000 |
|
| | | | | | |
| FINANCIAL RATIOS: | | | | | |
| Total Equity/ Total Assets | 10.32 | % | | 10.33 | % | | 10.10 | % |
| Tangible Common Equity/ Tangible Assets (4) | 7.24 | % | | 7.17 | % | | 7.62 | % |
| Tier I Common Equity/ Risk Weighted Assets (4) | 9.73 | % | | 9.77 | % | | 10.11 | % |
| Allowance for Loan Losses/ Total Loans | 1.41 | % | | 1.43 | % | | 1.44 | % |
| Allowance for Loan Losses/ Nonaccrual Loans | 258 | % | | 262 | % | | 224 | % |
| Return on Average Assets - Three Months Ended (Annualized) | 0.75 | % | | 1.02 | % | | 1.10 | % |
| Return on Average Common Equity - Three Months Ended (Annualized) (5) | 7.32 | % | | 9.91 | % | | 11.10 | % |
| Return on Average Tangible Common Equity - Three Months Ended (Annualized) (5) | 10.93 | % | | 14.63 | % | | 14.53 | % |
| Efficiency Ratio - Three Months Ended (6) | 66.18 | % | | 66.99 | % | | 65.47 | % |
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: | 09/30/15 | 06/30/15 | 09/30/14 | | 09/30/15 | 06/30/15 | 09/30/14 | | 09/30/15 | 06/30/15 | 09/30/14 |
| AVERAGE ASSETS | | | | | | | | | | | |
| Interest-Earning Assets: | | | | | | | | | | | |
| Cash and Investments: | | | | | | | | | | | |
| Taxable investment securities | $ | 340,170 |
| $ | 342,259 |
| $ | 295,395 |
| | $ | 1,094 |
| $ | 1,075 |
| $ | 876 |
| | 1.29 | % | 1.26 | % | 1.19 | % |
| Non-taxable investment securities (8) | 249,854 |
| 242,387 |
| 223,499 |
| | 1,945 |
| 1,731 |
| 1,449 |
| | 3.12 | % | 2.86 | % | 2.59 | % |
| Mortgage-backed securities | 526,408 |
| 538,688 |
| 325,913 |
| | 2,681 |
| 2,775 |
| 1,605 |
| | 2.04 | % | 2.06 | % | 1.97 | % |
| Federal funds sold and other | 213,372 |
| 90,616 |
| 359,899 |
| | 425 |
| 282 |
| 379 |
| | 0.78 | % | 1.23 | % | 0.42 | % |
| Total Cash and Investments | 1,329,804 |
| 1,213,950 |
| 1,204,706 |
| | 6,145 |
| 5,863 |
| 4,309 |
| | 1.85 | % | 1.93 | % | 1.43 | % |
| Loans (9): | | | | | | | | | | | |
| Commercial and Construction (8) | 3,043,739 |
| 2,874,547 |
| 2,841,869 |
| | 31,195 |
| 30,013 |
| 31,657 |
| | 4.01 | % | 4.13 | % | 4.36 | % |
| Residential | 2,208,004 |
| 2,160,987 |
| 2,071,326 |
| | 17,083 |
| 16,637 |
| 16,384 |
| | 3.09 | % | 3.08 | % | 3.16 | % |
| Home Equity and Other Consumer | 287,102 |
| 290,029 |
| 244,690 |
| | 1,982 |
| 2,038 |
| 1,733 |
| | 2.74 | % | 2.82 | % | 2.81 | % |
| Total Loans | 5,538,845 |
| 5,325,563 |
| 5,157,885 |
| | 50,260 |
| 48,688 |
| 49,774 |
| | 3.58 | % | 3.63 | % | 3.81 | % |
| Total Earning Assets | 6,868,649 |
| 6,539,513 |
| 6,362,591 |
| | 56,405 |
| 54,551 |
| 54,083 |
| | 3.24 | % | 3.32 | % | 3.36 | % |
| LESS: Allowance for Loan Losses | 78,263 |
| 77,938 |
| 76,099 |
| | | | | | | | |
| Cash and due From Banks (Non-Interest Bearing) | 38,631 |
| 41,596 |
| 42,080 |
| | | | | | | | |
| Other Assets | 404,945 |
| 410,296 |
| 341,953 |
| | | | | | | | |
| TOTAL AVERAGE ASSETS | $ | 7,233,962 |
| $ | 6,913,467 |
| $ | 6,670,525 |
| | | | | | | | |
| AVERAGE LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS, AND SHAREHOLDERS' EQUITY | | | | | | | | | | | |
| Interest-Bearing Liabilities: | | | | | | | | | | | |
| Interest-Bearing Deposits: | | | | | | | | | | | |
| Savings and NOW | $ | 581,041 |
| $ | 589,123 |
| $ | 583,547 |
| | $ | 103 |
| $ | 87 |
| $ | 110 |
| | 0.07 | % | 0.06 | % | 0.07 | % |
| Money Market | 2,944,893 |
| 2,754,817 |
| 2,640,762 |
| | 2,731 |
| 2,551 |
| 2,273 |
| | 0.37 | % | 0.37 | % | 0.34 | % |
| Certificates of Deposit | 593,466 |
| 597,617 |
| 607,940 |
| | 1,173 |
| 1,184 |
| 1,220 |
| | 0.78 | % | 0.79 | % | 0.80 | % |
| Total Interest-Bearing Deposits | 4,119,400 |
| 3,941,557 |
| 3,832,249 |
| | 4,007 |
| 3,822 |
| 3,603 |
| | 0.39 | % | 0.39 | % | 0.37 | % |
| Junior Subordinated Debentures | 106,363 |
| 106,363 |
| 106,363 |
| | 979 |
| 967 |
| 976 |
| | 3.60 | % | 3.60 | % | 3.59 | % |
| FHLB Borrowings and Other | 526,697 |
| 576,403 |
| 534,062 |
| | 2,063 |
| 2,046 |
| 2,371 |
| | 1.53 | % | 1.40 | % | 1.74 | % |
| Total Interest-Bearing Liabilities | 4,752,460 |
| 4,624,323 |
| 4,472,674 |
| | 7,049 |
| 6,835 |
| 6,950 |
| | 0.59 | % | 0.59 | % | 0.61 | % |
| Noninterest Bearing Demand Deposits | 1,623,524 |
| 1,443,228 |
| 1,404,875 |
| | | | | | | | |
| Payables and Other Liabilities | 102,076 |
| 97,641 |
| 100,106 |
| | | | | | | | |
| Total Average Liabilities | 6,478,060 |
| 6,165,192 |
| 5,977,655 |
| | | | | | | | |
| Redeemable Noncontrolling Interests | 22,020 |
| 22,760 |
| 23,584 |
| | | | | | | | |
| Average Shareholders' Equity | 733,882 |
| 725,515 |
| 669,286 |
| | | | | | | | |
| TOTAL AVERAGE LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS, AND SHAREHOLDERS' EQUITY | $ | 7,233,962 |
| $ | 6,913,467 |
| $ | 6,670,525 |
| | | | | | | | |
| Net Interest Income - on a Fully Taxable Equivalent Basis (FTE) | | | | | $ | 49,356 |
| $ | 47,716 |
| $ | 47,133 |
| | | | |
| LESS: FTE Adjustment (8) | | | | | 2,883 |
| 2,631 |
| 2,350 |
| | | | |
| Net Interest Income (GAAP Basis) | | | | | $ | 46,473 |
| $ | 45,085 |
| $ | 44,783 |
| | | | |
| Interest Rate Spread | | | | | | | | | 2.65 | % | 2.73 | % | 2.75 | % |
| Bank only Net Interest Margin | | | | | | | | | 2.91 | % | 2.97 | % | 3.00 | % |
| Net Interest Margin | | | | | | | | | 2.84 | % | 2.90 | % | 2.93 | % |
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: | 09/30/15 | 09/30/14 | | 09/30/15 | 09/30/14 | | 09/30/15 | 09/30/14 |
| AVERAGE ASSETS | | | | | | | | |
| Interest-Earning Assets: | | | | | | | | |
| Cash and Investments: | | | | | | | | |
| Taxable investment securities | $ | 334,473 |
| $ | 270,914 |
| | $ | 3,164 |
| $ | 2,242 |
| | 1.27 | % | 1.10 | % |
| Non-taxable investment securities (8) | 240,902 |
| 224,061 |
| | 5,246 |
| 4,246 |
| | 2.90 | % | 2.53 | % |
| Mortgage-backed securities | 527,081 |
| 333,252 |
| | 8,070 |
| 5,230 |
| | 2.04 | % | 2.09 | % |
| Federal funds sold and other | 150,611 |
| 250,942 |
| | 941 |
| 978 |
| | 0.90 | % | 0.52 | % |
| Total Cash and Investments | 1,253,067 |
| 1,079,169 |
| | 17,421 |
| 12,696 |
| | 1.86 | % | 1.57 | % |
| Loans (9): | | | | | | | | |
| Commercial and Construction (8) | 2,924,065 |
| 2,844,013 |
| | 92,575 |
| 95,975 |
| | 4.17 | % | 4.45 | % |
| Residential | 2,170,086 |
| 2,048,700 |
| | 50,375 |
| 48,537 |
| | 3.10 | % | 3.16 | % |
| Home Equity and Other Consumer | 285,066 |
| 244,421 |
| | 5,973 |
| 5,281 |
| | 2.80 | % | 2.89 | % |
| Total Loans | 5,379,217 |
| 5,137,134 |
| | 148,923 |
| 149,793 |
| | 3.67 | % | 3.86 | % |
| Total Earning Assets | 6,632,284 |
| 6,216,303 |
| | 166,344 |
| 162,489 |
| | 3.33 | % | 3.46 | % |
| LESS: Allowance for Loan Losses | 77,751 |
| 77,462 |
| | | | | | |
| Cash and due From Banks (Non-Interest Bearing) | 39,547 |
| 38,628 |
| | | | | | |
| Other Assets | 409,265 |
| 357,896 |
| | | | | | |
| TOTAL AVERAGE ASSETS | $ | 7,003,345 |
| $ | 6,535,365 |
| | | | | | |
| AVERAGE LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS, AND SHAREHOLDERS' EQUITY | | | | | | | | |
| Interest-Bearing Liabilities: | | | | | | | | |
| Interest-Bearing Deposits: | | | | | | | | |
| Savings and NOW | $ | 589,885 |
| $ | 577,012 |
| | $ | 294 |
| $ | 319 |
| | 0.07 | % | 0.07 | % |
| Money Market | 2,837,614 |
| 2,547,039 |
| | 7,877 |
| 6,112 |
| | 0.37 | % | 0.32 | % |
| Certificates of Deposit | 598,456 |
| 615,903 |
| | 3,550 |
| 3,763 |
| | 0.79 | % | 0.82 | % |
| Total Interest-Bearing Deposits | 4,025,955 |
| 3,739,954 |
| | 11,721 |
| 10,194 |
| | 0.39 | % | 0.36 | % |
| Junior Subordinated Debentures | 106,363 |
| 106,363 |
| | 2,902 |
| 2,896 |
| | 3.60 | % | 3.59 | % |
| FHLB Borrowings and Other | 524,704 |
| 522,881 |
| | 6,053 |
| 7,088 |
| | 1.52 | % | 1.79 | % |
| Total Interest-Bearing Liabilities | 4,657,022 |
| 4,369,198 |
| | 20,676 |
| 20,178 |
| | 0.59 | % | 0.61 | % |
| Noninterest Bearing Demand Deposits | 1,498,105 |
| 1,385,966 |
| | | | | | |
| Payables and Other Liabilities | 101,222 |
| 104,556 |
| | | | | | |
| Total Average Liabilities | 6,256,349 |
| 5,859,720 |
| | | | | | |
| Redeemable Noncontrolling Interests | 22,157 |
| 20,795 |
| | | | | | |
| Average Shareholders' Equity | 724,839 |
| 654,850 |
| | | | | | |
| TOTAL AVERAGE LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS, AND SHAREHOLDERS' EQUITY | $ | 7,003,345 |
| $ | 6,535,365 |
| | | | | | |
| Net Interest Income - on a Fully Taxable Equivalent Basis (FTE) | | | | $ | 145,668 |
| $ | 142,311 |
| | | |
| LESS: FTE Adjustment (8) | | | | 8,038 |
| 6,738 |
| | | |
| Net Interest Income (GAAP Basis) | | | | $ | 137,630 |
| $ | 135,573 |
| | | |
| Interest Rate Spread | | | | | | | 2.74 | % | 2.85 | % |
| Bank only Net Interest Margin | | | | | | | 2.98 | % | 3.10 | % |
| Net Interest Margin | | | | | | | 2.91 | % | 3.03 | % |
Boston Private Financial Holdings, Inc.
Selected Financial Data (Unaudited)
|
| | | | | | | | | | | |
| (In thousands) | September 30,
2015 | | June 30,
2015 | | September 30,
2014 |
| LOAN DATA (10): | | |
| Commercial and Industrial Loans: | | | | | |
| New England | $ | 827,301 |
| | $ | 793,897 |
| | $ | 758,728 |
|
| San Francisco Bay | 125,093 |
| | 121,477 |
| | 124,993 |
|
| Southern California | 84,428 |
| | 87,038 |
| | 47,107 |
|
| Total Commercial and Industrial Loans | $ | 1,036,822 |
| | $ | 1,002,412 |
| | $ | 930,828 |
|
| Commercial Real Estate Loans: | | | | | |
| New England | $ | 766,253 |
| | $ | 728,820 |
| | $ | 712,464 |
|
| San Francisco Bay | 625,145 |
| | 629,258 |
| | 628,149 |
|
| Southern California | 512,250 |
| | 469,337 |
| | 467,428 |
|
| Total Commercial Real Estate Loans | $ | 1,903,648 |
| | $ | 1,827,415 |
| | $ | 1,808,041 |
|
| Construction and Land Loans: | | | | | |
| New England | $ | 111,280 |
| | $ | 102,068 |
| | $ | 82,492 |
|
| San Francisco Bay | 35,627 |
| | 45,221 |
| | 35,668 |
|
| Southern California | 23,504 |
| | 13,637 |
| | 12,385 |
|
| Total Construction and Land Loans | $ | 170,411 |
| | $ | 160,926 |
| | $ | 130,545 |
|
| Residential Loans: | | | | | |
| New England | $ | 1,356,057 |
| | $ | 1,316,705 |
| | $ | 1,273,544 |
|
| San Francisco Bay | 462,630 |
| | 466,155 |
| | 456,355 |
|
| Southern California | 393,199 |
| | 392,648 |
| | 367,628 |
|
| Total Residential Loans | $ | 2,211,886 |
| | $ | 2,175,508 |
| | $ | 2,097,527 |
|
| Home Equity Loans: | | | | | |
| New England | $ | 81,796 |
| | $ | 85,057 |
| | $ | 76,142 |
|
| San Francisco Bay | 27,076 |
| | 30,013 |
| | 30,060 |
|
| Southern California | 5,915 |
| | 5,395 |
| | 3,025 |
|
| Total Home Equity Loans | $ | 114,787 |
| | $ | 120,465 |
| | $ | 109,227 |
|
| Other Consumer Loans: | | | | | |
| New England | $ | 161,186 |
| | $ | 164,522 |
| | $ | 124,449 |
|
| San Francisco Bay | 5,782 |
| | 6,793 |
| | 6,738 |
|
| Southern California | 2,950 |
| | 5,209 |
| | 6,136 |
|
| Total Other Consumer Loans | $ | 169,918 |
| | $ | 176,524 |
| | $ | 137,323 |
|
| Total Loans: | | | | | |
| New England | $ | 3,303,873 |
| | $ | 3,191,069 |
| | $ | 3,027,819 |
|
| San Francisco Bay | 1,281,353 |
| | 1,298,917 |
| | 1,281,963 |
|
| Southern California | 1,022,246 |
| | 973,264 |
| | 903,709 |
|
| Total Loans | $ | 5,607,472 |
| | $ | 5,463,250 |
| | $ | 5,213,491 |
|
Boston Private Financial Holdings, Inc.
Selected Financial Data (Unaudited)
|
| | | | | | | | | | | |
| (In thousands) | September 30,
2015 | | June 30,
2015 | | September 30,
2014 |
| CREDIT QUALITY (10): | | |
| Special Mention Loans: | | | | | |
| New England | $ | 46,924 |
| | $ | 53,626 |
| | $ | 45,788 |
|
| San Francisco Bay | 11,087 |
| | 17,150 |
| | 24,623 |
|
| Southern California | 12,718 |
| | 5,659 |
| | 32,614 |
|
| Total Special Mention Loans | $ | 70,729 |
| | $ | 76,435 |
| | $ | 103,025 |
|
| Accruing Substandard Loans (11): | | | | | |
| New England | $ | 16,996 |
| | $ | 16,666 |
| | $ | 13,589 |
|
| San Francisco Bay | 20,108 |
| | 20,396 |
| | 24,267 |
|
| Southern California | 22,405 |
| | 24,554 |
| | 5,331 |
|
| Total Accruing Substandard Loans | $ | 59,509 |
| | $ | 61,616 |
| | $ | 43,187 |
|
| Nonaccruing Loans: | | | | | |
| New England | $ | 22,815 |
| | $ | 17,943 |
| | $ | 16,205 |
|
| San Francisco Bay | 5,096 |
| | 9,163 |
| | 15,133 |
|
| Southern California | 2,816 |
| | 2,785 |
| | 2,203 |
|
| Total Nonaccruing Loans | $ | 30,727 |
| | $ | 29,891 |
| | $ | 33,541 |
|
| Other Real Estate Owned: | | | | | |
| New England | $ | 191 |
| | $ | 344 |
| | $ | 489 |
|
| San Francisco Bay | 585 |
| | 585 |
| | 585 |
|
| Southern California | — |
| | — |
| | — |
|
| Total Other Real Estate Owned | $ | 776 |
| | $ | 929 |
| | $ | 1,074 |
|
| Loans 30-89 Days Past Due and Accruing (12): | | | | | |
| New England | $ | 6,733 |
| | $ | 3,873 |
| | $ | 1,825 |
|
| San Francisco Bay | 14 |
| | 110 |
| | 653 |
|
| Southern California | 227 |
| | 356 |
| | 1,145 |
|
| Total Loans 30-89 Days Past Due and Accruing | $ | 6,974 |
| | $ | 4,339 |
| | $ | 3,623 |
|
| Loans (Charged-off)/ Recovered, Net for the Three Months Ended: | | | | | |
| New England | $ | (1,618 | ) | | $ | 106 |
| | $ | 912 |
|
| San Francisco Bay | (57 | ) | | 833 |
| | 465 |
|
| Southern California | 70 |
| | 49 |
| | 1,959 |
|
| Total Net Loans (Charged-off)/ Recovered | $ | (1,605 | ) | | $ | 988 |
| | $ | 3,336 |
|
| Loans (Charged-off)/ Recovered, Net for the Nine Months Ended: | | | | | |
| New England | $ | (622 | ) | | | | $ | 830 |
|
| San Francisco Bay | 3,514 |
| | | | 3,064 |
|
| Southern California | 416 |
| | | | 3,818 |
|
| Total Net Loans (Charged-off)/ Recovered | $ | 3,308 |
| | | | $ | 7,712 |
|
Boston Private Financial Holdings, Inc.
Selected Financial Data
(Unaudited)
FOOTNOTES:
| |
| (1) | Net income from discontinued operations consists of contingent payments or expenses related to our divested affiliates, including Davidson Trust Company; Boston Private Value Investors, Inc.; Sand Hill Advisors, LLC; RINET Company, LLC; Gibraltar Private Bank & Trust Company; and Westfield Capital Management Company, LLC. |
| |
| (2) | Adjustments to net income attributable to the Company to arrive at net income attributable to the common shareholders, as presented in these tables, include decrease/ (increase) in noncontrolling interests redemption value, dividends paid on preferred stock, and dividends on participating securities. |
| |
| (3) | 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. These additional shares 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 earnings per share calculation. The potential dilutive shares relate to: unexercised stock options, unvested non-participating restricted stock, and unexercised stock warrants. See Part II. Item 8. “Financial Statements and Supplementary Data - Note 16: Earnings Per Share” in the Company's Annual Report on Form 10-K for the year ended December 31, 2014 for additional information. |
| |
| (4) | The Company uses certain non-GAAP financial measures, such as: Tangible Book Value Per Share and the Tangible Common Equity (“TCE”) to Tangible Assets (“TA”) ratio 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 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 non-convertible Series D Preferred stock and exclude Goodwill and Intangible Assets, net.
|
| | | | | | | | | | | |
| (In thousands, except per share data) | September 30,
2015 | | June 30,
2015 | | September 30,
2014 |
| Total Balance Sheet Assets | $ | 7,180,528 |
| | $ | 7,045,939 |
| | $ | 6,689,085 |
|
| LESS: Goodwill and Intangible Assets, net | (186,888 | ) | | (188,543 | ) | | (127,655 | ) |
| Tangible Assets (non-GAAP) | $ | 6,993,640 |
| | $ | 6,857,396 |
| | $ | 6,561,430 |
|
| Total Shareholders' Equity | $ | 740,757 |
| | $ | 728,085 |
| | $ | 675,631 |
|
| LESS: Series D Preferred Stock (non-convertible) | (47,753 | ) | | (47,753 | ) | | (47,753 | ) |
| LESS: Goodwill and Intangible Assets, net | (186,888 | ) | | (188,543 | ) | | (127,655 | ) |
| Total adjusting items | (234,641 | ) | | (236,296 | ) | | (175,408 | ) |
| Tangible Common Equity (non-GAAP) | $ | 506,116 |
| | $ | 491,789 |
| | $ | 500,223 |
|
| Total Equity/Total Assets | 10.32 | % | | 10.33 | % | | 10.10 | % |
| Tangible Common Equity/Tangible Assets (non-GAAP) | 7.24 | % | | 7.17 | % | | 7.62 | % |
| | | | | | |
| Total Risk Weighted Assets * | $ | 5,396,783 |
| | $ | 5,278,908 |
| | $ | 5,000,790 |
|
| Tier I Common Equity * | $ | 525,004 |
| | $ | 515,546 |
| | $ | 505,474 |
|
| Tier I Common Equity/ Risk Weighted Assets | 9.73 | % | | 9.77 | % | | 10.11 | % |
| | | | | | |
| End of Period Shares Outstanding | 83,645 |
| | 83,540 |
| | 80,464 |
|
| | | | | | |
| Book Value Per Common Share | $ | 8.29 |
| | $ | 8.14 |
| | $ | 7.80 |
|
| Tangible Book Value Per Share (non-GAAP) | $ | 6.05 |
| | $ | 5.89 |
| | $ | 6.22 |
|
* Risk Weighted Assets and Tier I Common Equity for September 30, 2015 are presented based on estimated data.
Boston Private Financial Holdings, Inc.
Selected Financial Data
(Unaudited)
| |
| (5) | The Company uses certain non-GAAP financial measures, such as: Return on Average Common Equity and Return on Average Tangible Common Equity 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 Return on Average Equity ratio to the Non-GAAP Return on Average Common Equity ratio, and the Non-GAAP Return on Average Tangible Common Equity ratio are presented below:
The Company annualizes income data based on the number of days in the period presented and a 365 day year. The Company calculates Average Common Equity by adjusting Average Equity to exclude Average Preferred Equity. The Company calculates Average Tangible Common Equity by adjusting Average Equity to exclude Average Goodwill and Intangible Assets, net and Average Preferred Equity.
|
| | | | | | | | | | | | | | | | | | | |
| | Three Months Ended | | Nine Months Ended |
| (In thousands) | September 30,
2015 | | June 30,
2015 | | September 30,
2014 | | September 30,
2015 | | September 30,
2014 |
| Total average shareholders' equity | $ | 733,882 |
| | $ | 725,515 |
| | $ | 669,286 |
| | $ | 724,839 |
| | $ | 654,850 |
|
| LESS: Average Series D preferred stock (non-convertible) | (47,753 | ) | | (47,753 | ) | | (47,753 | ) | | (47,753 | ) | | (47,753 | ) |
| Average common equity (non-GAAP) | 686,129 |
| | 677,762 |
| | 621,533 |
| | 677,086 |
| | 607,097 |
|
| LESS: Average goodwill and intangible assets, net | (187,728 | ) | | (189,420 | ) | | (128,178 | ) | | (189,391 | ) | | (129,217 | ) |
| Total adjusting items | (187,728 | ) | | (189,420 | ) | | (128,178 | ) | | (189,391 | ) | | (129,217 | ) |
| Average Tangible Common Equity (non-GAAP) | $ | 498,401 |
| | $ | 488,342 |
| | $ | 493,355 |
| | $ | 487,695 |
| | $ | 477,880 |
|
| |
|
| |
| |
| | | | |
| Net income attributable to the Company | $ | 13,530 |
| | $ | 17,610 |
| | $ | 18,265 |
| | $ | 49,923 |
| | $ | 56,638 |
|
| LESS: Dividends on Series D preferred stock | (869 | ) | | (869 | ) | | (869 | ) | | (2,606 | ) | | (2,606 | ) |
| Common net income (non-GAAP) | 12,661 |
| | 16,741 |
| | 17,396 |
| | 47,317 |
| | 54,032 |
|
| ADD: Amortization of intangibles, net of tax (35%) | 1,076 |
| | 1,076 |
| | 670 |
| | 3,193 |
| | 2,034 |
|
| Tangible common net income (non-GAAP) | $ | 13,737 |
| | $ | 17,817 |
| | $ | 18,066 |
| | $ | 50,510 |
| | $ | 56,066 |
|
| | | | | | | | | | |
| Return on Average Equity - (Annualized) | 7.31 | % | | 9.74 | % | | 10.83 | % | | 9.21 | % | | 11.56 | % |
| Return on Average Common Equity - (Annualized) (non-GAAP) | 7.32 | % | | 9.91 | % | | 11.10 | % | | 9.34 | % | | 11.90 | % |
| Return on Average Tangible Common Equity - (Annualized) (non-GAAP) | 10.93 | % | | 14.63 | % | | 14.53 | % | | 13.85 | % | | 15.69 | % |
Boston Private Financial Holdings, Inc.
Selected Financial Data
(Unaudited)
| |
| (6) | The Company uses certain non-GAAP financial measures, such as: pre-tax, pre-provision earnings, total operating expenses excluding restructuring expense, and the efficiency ratio 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 income from continuing operations before income taxes to non-GAAP pre-tax, pre-provision earnings; from GAAP total operating expense to non-GAAP total operating expense excluding restructuring; and from GAAP efficiency ratio to Non-GAAP efficiency ratio (FTE basis), excluding restructuring, are presented below:
|
| | | | | | | | | | | | | | | | | | | |
| | Three Months Ended | | Nine Months Ended |
| (In thousands) | September 30,
2015 | | June 30,
2015 | | September 30,
2014 | | September 30,
2015 | | September 30,
2014 |
| Income before income taxes (GAAP) | $ | 21,390 |
| | $ | 25,327 |
| | $ | 27,153 |
| | $ | 73,207 |
| | $ | 81,880 |
|
| ADD BACK: Provision/ (credit) for loan losses | 2,600 |
| | — |
| | (2,600 | ) | | 100 |
| | (8,800 | ) |
| Pre-tax, pre-provision earnings (non-GAAP) | $ | 23,990 |
| | $ | 25,327 |
| | $ | 24,553 |
| | $ | 73,307 |
| | $ | 73,080 |
|
| | | | | | | | | | |
| Total operating expense (GAAP) | $ | 61,929 |
| | $ | 62,418 |
| | $ | 53,999 |
| | $ | 187,774 |
| | $ | 163,369 |
|
| Less: Amortization of intangibles | 1,655 |
| | 1,655 |
| | 1,031 |
| | 4,912 |
| | 3,129 |
|
| Less: Restructuring | 1,504 |
| | 220 |
| | — |
| | 1,724 |
| | — |
|
| Total operating expense (excluding amortization of intangibles and restructuring) (non-GAAP) | $ | 58,770 |
| | $ | 60,543 |
| | $ | 52,968 |
| | $ | 181,138 |
| | $ | 160,240 |
|
| Total operating expense (excluding restructuring) (non-GAAP) | 60,425 |
| | 62,198 |
| | 53,999 |
| | 186,050 |
| | 163,369 |
|
| | | | | | | | | | |
| Net interest income | $ | 46,473 |
| | $ | 45,085 |
| | $ | 44,783 |
| | $ | 137,630 |
| | $ | 135,573 |
|
| Total core fees and income | 39,443 |
| | 40,347 |
| | 33,558 |
| | 119,950 |
| | 99,369 |
|
| Total other income | 3 |
| | 2,313 |
| | 211 |
| | 3,501 |
| | 1,507 |
|
| FTE income | 2,883 |
| | 2,631 |
| | 2,350 |
| | 8,038 |
| | 6,738 |
|
| Total revenue (FTE basis) | $ | 88,802 |
| | $ | 90,376 |
| | $ | 80,902 |
| | $ | 269,119 |
| | $ | 243,187 |
|
| Efficiency Ratio, before deduction of intangible amortization (GAAP) | 72.08 | % | | 71.14 | % | | 68.74 | % | | 71.92 | % | | 69.09 | % |
| Efficiency Ratio, FTE Basis excluding restructuring (non-GAAP) | 66.18 | % | | 66.99 | % | | 65.47 | % | | 67.31 | % | | 65.89 | % |
| |
| (7) | The Company uses certain non-GAAP financial measures, such as: net interest income excluding interest recovered on previous non-accrual loans and net interest margin excluding interest recovered on previous non-accrual loans 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 net interest income to non-GAAP net interest income excluding interest recovered on previous non-accrual loans; and from GAAP net interest margin to non-GAAP net interest margin excluding interest recovered on previous non-accrual loans, are presented below:
|
| | | | | | | | | | | |
| | Three Months Ended |
| (In thousands) | September 30,
2015 | | June 30,
2015 | | September 30,
2014 |
| Net interest income (GAAP basis) | $ | 46,473 |
| | $ | 45,085 |
| | $ | 44,783 |
|
| ADD: FTE income | 2,883 |
| | 2,631 |
| | 2,350 |
|
| Net interest income, FTE basis | 49,356 |
| | 47,716 |
| | 47,133 |
|
| LESS: Interest recovered on previously non-accrual loans | 298 |
| | 69 |
| | 789 |
|
| Net interest income, FTE basis, excluding interest recovered on previously non-accrual loans (non-GAAP) | 49,058 |
| | 47,647 |
| | 46,344 |
|
| | | |
|
| |
|
|
| Net Interest Margin (FTE basis) | 2.84 | % | | 2.90 | % | | 2.93 | % |
| Net Interest Margin, FTE basis, excluding interest recovered on previously non-accrual loans (non-GAAP) | 2.82 | % | | 2.90 | % | | 2.88 | % |
| |
| (8) | 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. |
| |
| (9) | Includes Loans Held for Sale and Nonaccrual Loans. |
| |
| (10) | The concentration of the Private Banking loan data and credit quality is primarily based on the location of the lender's regional offices. |
| |
| (11) | Accruing substandard loans include loans that are classified as substandard but are still accruing interest income. Boston Private Bank & Trust Company 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. |
| |
| (12) | In addition to loans 30-89 days past due and accruing, at September 30, 2015 the Company had one loan totaling $0.1 million that was more than 90 days past due but still on accrual status. This loan originated in the New England region. At June 30, 2015 the Company had no loans that were more than 90 days past due but still on accrual status. At September 30, 2014, the Company had two loans totaling $0.5 million that were more than 90 days past due but still on accrual status. These loans originated in the New England region. |
