Boston Private Financial Holdings, Inc. Reports Fourth Quarter and Full Year 2016 Results; Raises Dividend to $0.11 Per Share
Fourth Quarter and Full Year Highlights:
| |
| • | Net Interest Income Growth: Net Interest Income for the fourth quarter increased 7% year-over-year and 3% linked quarter to $51.5 million. Net Interest Income for the full year of 2016 was $200.4 million, an 8% increase compared to 2015. |
| |
| • | Deposit and Loan Growth: Average Total Deposits increased 2% year-over-year to $6.0 billion, and Average Total Loans increased 6% year-over-year to $6.0 billion. |
| |
| • | Assets Under Management: Total Assets Under Management/Advisory (“AUM”) of $27.6 billion were flat year-over-year and linked quarter. |
| |
| • | Dividend Increase: The Board of Directors approved a quarterly cash dividend of $0.11 per share of common stock, an increase from $0.10 per share in the prior quarter. |
| |
| • | Notable Items: During the fourth quarter, the Company recorded a net after-tax charge of $4.3 million or $0.05 of diluted earnings per share related to goodwill impairment charges and gain on sale of offices. |
Boston, MA - January 18, 2017 - Boston Private Financial Holdings, Inc. (NASDAQ: BPFH) (the “Company” or “BPFH”) today reported fourth quarter 2016 GAAP Net Income Attributable to the Company of $17.6 million, compared to $19.6 million for the third quarter of 2016 and $15.0 million for the fourth quarter of 2015. Fourth quarter 2016 diluted earnings per share were $0.19, compared to $0.22 in the third quarter of 2016, and $0.17 in the fourth quarter of 2015. Excluding Notable Items and the related tax impact, adjusted Net Income Attributable to the Company for the fourth quarter of 2016 was $21.9 million, and adjusted diluted earnings per share were $0.24.
For the full year of 2016, BPFH reported GAAP Net Income Attributable to the Company of $71.6 million or $0.81 of diluted earnings per share, compared to $64.9 million or $0.74 of diluted earnings per share for the full year of 2015.
“2016 was a year of progress for the Company,” said Clayton G. Deutsch, CEO. "The overall Company delivered 10% annual profit growth despite the impact of a goodwill impairment charge, and returned record levels of capital to shareholders through dividends and share repurchases."
“Our Private Bank contributed pristine asset quality and reliable earnings growth throughout a challenging yield environment, while Wealth Management & Trust demonstrated ongoing progress towards stability. Our Investment Managers and Wealth Advisors continue to contribute high returns to Company-wide financial performance. As we enter 2017, we are focused on perfecting our client service offering, improving profitability in all of our businesses, and positioning for long term growth.”
Notable Items Impacting Fourth Quarter Results
During the fourth quarter, the Company recorded two Notable Items that resulted in a net after-tax charge of $4.3 million. The Notable Items include a pre-tax, non-cash charge of $9.5 million for goodwill impairment related to the Wealth Management & Trust segment, and a pre-tax net gain on sale of $2.9 million related to the divestiture of two Southern California offices. The office divestiture, which closed during the fourth quarter, included $104 million of deposits. The tax effect was calculated by applying the federal statutory rate of of 35%.
Core Fees and Income/Assets Under Management
Core Fees and Income for the fourth quarter were $38.5 million, a 2% increase linked quarter and a 4% increase year-over-year. For the full year 2016, Core Fees and Income decreased 3% to $151.7 million due to lower AUM in the Wealth Management & Trust segment, partially offset by higher Other Banking Fee Income.
AUM was $27.6 billion at the end of the fourth quarter, flat from the previous quarter and year-over-year. The Company experienced net flows of negative $176 million during the fourth quarter, compared to negative $336 million and negative $543 million in the third quarter of 2016 and fourth quarter of 2015, respectively. During the fourth quarter, net flows by segment were negative $82 million for Wealth Management & Trust, negative $23 million for Investment Management, and negative $71 million for Wealth Advisory.
Net Interest Income
Net Interest Income for the fourth quarter was $51.5 million, an increase of 3% from $49.9 million for the third quarter of 2016 and an increase of 7% from $48.1 million for the fourth quarter of 2015. The current quarter includes $0.4 million of interest recovered on previous nonaccrual loans compared to $0.3 million for both the third quarter of 2016 and fourth quarter of 2015. Excluding interest recovered on previous nonaccrual loans, Net Interest Income on an FTE basis increased 4% linked quarter and 6% year-over-year.
Net Interest Margin was 2.88% for the fourth quarter of 2016, unchanged from both the third quarter of 2016 and the fourth quarter of 2015. Excluding interest recovered on previous nonaccrual loans, Net Interest Margin was 2.86%, also unchanged from the third quarter of 2016 and the fourth quarter of 2015.
Total Operating Expenses
Total Operating Expenses for the fourth quarter of 2016 were $71.8 million, up 16% from $61.7 million for the third quarter of 2016, primarily due to the goodwill impairment. Excluding the goodwill impairment, Total Operating Expenses for the fourth quarter were $62.3 million, a 1% increase from the previous quarter.
On a year-over-year basis, Total Operating Expenses increased 7% from $67.4 million. Excluding the fourth quarter 2016 goodwill impairment and a fourth quarter 2015 restructuring charge of $2.0 million, Total Operating Expenses declined 5% year-over-year.
Provision and Asset Quality
The Company recorded a provision credit of $1.1 million for the fourth quarter of 2016, compared to a provision credit of $0.1 million for the third quarter of 2016 and $1.7 million for the fourth quarter of 2015. The provision credit in the fourth quarter of 2016 was due to net recoveries and a decrease in Criticized and Classified loans, partially offset by an increase in loan volume.
Criticized Loans decreased 25% linked quarter and 23% year-over-year to $118.5 million. Nonaccrual Loans (“Nonaccruals”) increased 5% to $17.3 million on a linked quarter basis. On a year-over-year basis, Nonaccruals decreased 35% from $26.6 million. As a percentage of Total Loans, Nonaccruals were 28 basis points at December 31, 2016, flat compared to September 30, 2016, and down 18 basis points from December 31, 2015.
Additional credit metrics are listed below:
|
| | | | | | | | | | | | | | | | | | | |
| (In millions) | December 31,
2016 | | September 30,
2016 | | June 30,
2016 | | March 31,
2016 | | December 31,
2015 |
| Total Criticized Loans | $ | 118.5 |
| | $ | 158.8 |
| | $ | 150.7 |
| | $ | 166.9 |
| | $ | 154.1 |
|
Total Loans 30-89 Days Past Due and Accruing (13) | $ | 15.1 |
| | $ | 4.6 |
| | $ | 7.6 |
| | $ | 8.3 |
| | $ | 13.1 |
|
| Total Net Loans (Charged-off)/ Recovered | $ | 1.5 |
| | $ | 2.1 |
| | $ | 1.9 |
| | $ | 1.1 |
| | $ | 0.9 |
|
Allowance for Loan Losses/ Total Loans | 1.28 | % | | 1.32 | % | | 1.32 | % | | 1.35 | % | | 1.37 | % |
Capital Ratios
Capital ratios are listed below:
|
| | | | | | | | | | | | | | |
| | December 31,
2016 | | September 30,
2016 | | June 30,
2016 | | March 31,
2016 | | December 31,
2015 |
| BPFH Ratios: | | | | | | | | | |
| Total Risk-Based Capital * | 13.9 | % | | 14.0 | % | | 14.0 | % | | 14.0 | % | | 13.9 | % |
| Tier I Risk-Based Capital * | 12.7 | % | | 12.7 | % | | 12.7 | % | | 12.7 | % | | 12.6 | % |
| Tier I Leverage Capital * | 9.4 | % | | 9.5 | % | | 9.6 | % | | 9.5 | % | | 9.5 | % |
TCE/TA (4) | 7.1 | % | | 7.4 | % | | 7.4 | % | | 7.3 | % | | 7.0 | % |
Tier I Common Equity/ Risk Weighted Assets * | 10.0 | % | | 10.0 | % | | 10.0 | % | | 9.9 | % | | 9.8 | % |
*December 31, 2016 information is presented based on estimated data.
Dividend Payments
Concurrent with the release of fourth quarter 2016 earnings, the Board of Directors of the Company declared a cash dividend to common shareholders of $0.11 per share. The record date for this dividend is February 3, 2017, and the payment date is February 17, 2017.
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 February 15, 2017, and the payment date is March 15, 2017.
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 intangibles, goodwill impairment, and restructuring; the efficiency ratio (FTE basis); the efficiency ratio (FTE basis) excluding amortization of intangibles, goodwill impairment, and restructuring; net income attributable to the Company excluding notable items; diluted earnings per share excluding notable items; and Net Interest Income and Net Interest Margin excluding interest recovered on previous nonaccrual 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, January 19, 2017, to discuss the financial results, business highlights and outlook. To access the call:
Dial In #: (888) 317-6003
Elite Entry Number: 6886722
Replay Information:
Available from January 19, 2017 at 12 noon until January 26, 2017
Dial In #: (877) 344-7529
Conference Number: 10098672
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 that owns Wealth Management and Private Banking affiliates with offices in Boston, New York, Los Angeles, San Francisco, San Jose, Florida, and Wisconsin. The Company has total assets of approximately $8 billion, 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.bostonprivate.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:
Adam Bromley
Vice President Corporate Finance and Director of Investor Relations
Boston Private Financial Holdings, Inc.
(617) 912-4386
abromley@bostonprivate.com
Boston Private Financial Holdings, Inc.
Selected Financial Data (Unaudited)
|
| | | | | | | | | | | | | | | | | | | |
| | December 31,
2016 | | September 30,
2016 | | June 30,
2016 | | March 31,
2016 | | December 31,
2015 |
| | (In thousands, except share and per share data) |
| Assets: | | | | | | | | | |
| Cash and cash equivalents | $ | 106,557 |
| | $ | 67,631 |
| | $ | 126,167 |
| | $ | 113,946 |
| | $ | 238,694 |
|
| Investment securities available-for-sale | 1,264,132 |
| | 1,249,578 |
| | 1,191,523 |
| | 1,151,529 |
| | 1,084,510 |
|
| Investment securities held-to-maturity | 93,079 |
| | 98,881 |
| | 105,297 |
| | 111,337 |
| | 116,352 |
|
| Stock in Federal Home Loan Banks | 44,077 |
| | 36,084 |
| | 44,374 |
| | 34,202 |
| | 35,181 |
|
| Loans held for sale | 3,464 |
| | 5,316 |
| | 4,677 |
| | 5,383 |
| | 8,072 |
|
| Total loans | 6,114,354 |
| | 5,869,498 |
| | 5,751,497 |
| | 5,658,181 |
| | 5,719,212 |
|
| Less: Allowance for loan losses | 78,077 |
| | 77,669 |
| | 75,753 |
| | 76,427 |
| | 78,500 |
|
| Net loans | 6,036,277 |
| | 5,791,829 |
| | 5,675,744 |
| | 5,581,754 |
| | 5,640,712 |
|
| Other real estate owned (“OREO”) | 1,690 |
| | 1,800 |
| | 2,042 |
| | 98 |
| | 776 |
|
| Premises and equipment, net | 31,827 |
| | 32,089 |
| | 31,752 |
| | 31,575 |
| | 31,036 |
|
| Goodwill | 142,554 |
| | 152,082 |
| | 152,082 |
| | 152,082 |
| | 152,082 |
|
| Intangible assets, net | 26,725 |
| | 28,267 |
| | 29,836 |
| | 31,422 |
| | 33,007 |
|
| Fees receivable | 13,400 |
| | 11,185 |
| | 11,129 |
| | 11,041 |
| | 11,258 |
|
| Accrued interest receivable | 20,479 |
| | 18,062 |
| | 18,061 |
| | 17,590 |
| | 17,950 |
|
| Deferred income taxes, net | 55,460 |
| | 39,319 |
| | 36,942 |
| | 43,164 |
| | 51,699 |
|
| Other assets | 130,753 |
| | 149,427 |
| | 149,975 |
| | 128,540 |
| | 121,179 |
|
| Total assets | $ | 7,970,474 |
| | $ | 7,681,550 |
| | $ | 7,579,601 |
| | $ | 7,413,663 |
| | $ | 7,542,508 |
|
| Liabilities: | | | | | | | | | |
| Deposits | $ | 6,085,146 |
| | $ | 5,812,243 |
| | $ | 5,536,092 |
| | $ | 5,786,860 |
| | $ | 6,040,437 |
|
| Deposits held for sale | — |
| | 105,788 |
| | 110,558 |
| | — |
| | — |
|
| Securities sold under agreements to repurchase | 59,624 |
| | 77,466 |
| | 43,304 |
| | 63,182 |
| | 58,215 |
|
| Federal funds purchased | 80,000 |
| | 125,000 |
| | 180,000 |
| | 40,000 |
| | — |
|
| Federal Home Loan Bank borrowings | 734,205 |
| | 522,681 |
| | 678,012 |
| | 523,953 |
| | 461,324 |
|
| Junior subordinated debentures | 106,363 |
| | 106,363 |
| | 106,363 |
| | 106,363 |
| | 106,363 |
|
| Other liabilities | 119,683 |
| | 134,322 |
| | 135,289 |
| | 114,222 |
| | 111,468 |
|
| Total liabilities | 7,185,021 |
| | 6,883,863 |
| | 6,789,618 |
| | 6,634,580 |
| | 6,777,807 |
|
| Redeemable Noncontrolling Interests (“RNCI”) | 16,972 |
| | 16,199 |
| | 15,843 |
| | 16,938 |
| | 18,088 |
|
| Shareholders’ Equity: | | | | | | | | | |
| Preferred stock, $1.00 par value; authorized: 2,000,000 shares | 47,753 |
| | 47,753 |
| | 47,753 |
| | 47,753 |
| | 47,753 |
|
| Common stock, $1.00 par value; authorized: 170,000,000 shares | 83,732 |
| | 83,195 |
| | 83,380 |
| | 83,024 |
| | 83,411 |
|
| Additional paid-in capital | 597,454 |
| | 597,209 |
| | 597,989 |
| | 599,825 |
| | 600,670 |
|
| Retained earnings | 47,929 |
| | 39,415 |
| | 28,985 |
| | 21,740 |
| | 12,886 |
|
| Accumulated other comprehensive income/ (loss) | (12,548 | ) | | 10,134 |
| | 12,654 |
| | 6,687 |
| | (1,500 | ) |
| Total Company’s shareholders’ equity | 764,320 |
| | 777,706 |
| | 770,761 |
| | 759,029 |
| | 743,220 |
|
| Noncontrolling interests | 4,161 |
| | 3,782 |
| | 3,379 |
| | 3,116 |
| | 3,393 |
|
| Total shareholders’ equity | 768,481 |
| | 781,488 |
| | 774,140 |
| | 762,145 |
| | 746,613 |
|
| Total liabilities, redeemable noncontrolling interests and shareholders’ equity | $ | 7,970,474 |
| | $ | 7,681,550 |
| | $ | 7,579,601 |
| | $ | 7,413,663 |
| | $ | 7,542,508 |
|
Boston Private Financial Holdings, Inc.
Selected Financial Data (Unaudited)
|
| | | | | | | | | | | | | | | | | | | |
| | Three Months Ended |
| | December 31,
2016 | | September 30,
2016 | | June 30,
2016 | | March 31,
2016 | | December 31,
2015 |
| Interest and dividend income: | (In thousands, except share and per share data) |
| Loans | $ | 51,499 |
| | $ | 50,074 |
| | $ | 49,731 |
| | $ | 50,046 |
| | $ | 49,463 |
|
| Taxable investment securities | 1,592 |
| | 1,537 |
| | 1,507 |
| | 1,594 |
| | 1,239 |
|
| Non-taxable investment securities | 1,520 |
| | 1,444 |
| | 1,400 |
| | 1,390 |
| | 1,348 |
|
| Mortgage-backed securities | 3,290 |
| | 3,079 |
| | 2,982 |
| | 3,065 |
| | 2,863 |
|
| Federal funds sold and other | 508 |
| | 469 |
| | 405 |
| | 507 |
| | 449 |
|
| Total interest and dividend income | 58,409 |
| | 56,603 |
| | 56,025 |
| | 56,602 |
| | 55,362 |
|
| Interest expense: | | | | | | | | | |
| Deposits | 4,152 |
| | 4,163 |
| | 4,075 |
| | 4,182 |
| | 4,281 |
|
| Federal Home Loan Bank borrowings | 1,987 |
| | 1,929 |
| | 2,139 |
| | 1,953 |
| | 1,960 |
|
| Junior subordinated debentures | 674 |
| | 591 |
| | 584 |
| | 578 |
| | 973 |
|
| Repurchase agreements and other short-term borrowings | 77 |
| | 49 |
| | 58 |
| | 10 |
| | 8 |
|
| Total interest expense | 6,890 |
| | 6,732 |
| | 6,856 |
| | 6,723 |
| | 7,222 |
|
| Net interest income | 51,519 |
| | 49,871 |
| | 49,169 |
| | 49,879 |
| | 48,140 |
|
| Provision/ (credit) for loan losses | (1,128 | ) | | (138 | ) | | (2,535 | ) | | (3,133 | ) | | (1,655 | ) |
| Net interest income after provision/ (credit) for loan losses | 52,647 |
| | 50,009 |
| | 51,704 |
| | 53,012 |
| | 49,795 |
|
| Fees and other income: | | | | | | | | | |
| Investment management fees | 12,408 |
| | 10,717 |
| | 10,627 |
| | 10,658 |
| | 10,889 |
|
| Wealth advisory fees | 12,568 |
| | 12,750 |
| | 12,551 |
| | 12,712 |
| | 12,569 |
|
| Wealth management and trust fees | 11,031 |
| | 10,826 |
| | 11,208 |
| | 10,916 |
| | 11,782 |
|
| Other banking fee income | 2,387 |
| | 3,447 |
| | 2,982 |
| | 3,233 |
| | 1,719 |
|
| Gain on sale of loans, net | 105 |
| | 156 |
| | 197 |
| | 209 |
| | 178 |
|
| Total core fees and income | 38,499 |
| | 37,896 |
| | 37,565 |
| | 37,728 |
| | 37,137 |
|
| Gain/ (loss) on sale of investments, net | 2 |
| | 273 |
| | 245 |
| | 1 |
| | 215 |
|
| Gain/ (loss) on OREO, net | (110 | ) | | 137 |
| | — |
| | 280 |
| | — |
|
| Gain on sale of offices | 2,862 |
| | — |
| | — |
| | — |
| | — |
|
| Other | 2,705 |
| | 1,706 |
| | (1,015 | ) | | 13 |
| | 366 |
|
| Total other income | 5,459 |
| | 2,116 |
| | (770 | ) | | 294 |
| | 581 |
|
| Operating expense: | | | | | | | | | |
| Salaries and employee benefits | 39,669 |
| | 40,924 |
| | 40,614 |
| | 42,560 |
| | 39,520 |
|
| Occupancy and equipment | 10,039 |
| | 9,521 |
| | 9,928 |
| | 9,587 |
| | 9,989 |
|
| Professional services | 2,756 |
| | 2,290 |
| | 3,015 |
| | 3,515 |
| | 3,778 |
|
| Marketing and business development | 2,022 |
| | 1,623 |
| | 1,811 |
| | 2,170 |
| | 4,001 |
|
| Contract services and data processing | 1,743 |
| | 1,865 |
| | 1,737 |
| | 1,679 |
| | 1,505 |
|
| Amortization of intangibles | 1,542 |
| | 1,568 |
| | 1,586 |
| | 1,586 |
| | 1,799 |
|
| Impairment of goodwill | 9,528 |
| | — |
| | — |
| | — |
| | — |
|
| FDIC insurance | 727 |
| | 722 |
| | 1,015 |
| | 1,020 |
| | 1,089 |
|
| Restructuring | — |
| | — |
| | 905 |
| | 1,112 |
| | 2,000 |
|
| Other | 3,817 |
| | 3,157 |
| | 4,120 |
| | 3,480 |
| | 3,726 |
|
| Total operating expense | 71,843 |
| | 61,670 |
| | 64,731 |
| | 66,709 |
| | 67,407 |
|
| Income before income taxes | 24,762 |
| | 28,351 |
| | 23,768 |
| | 24,325 |
| | 20,106 |
|
| Income tax expense | 7,247 |
| | 8,652 |
| | 7,626 |
| | 7,438 |
| | 5,638 |
|
| Net income from continuing operations | 17,515 |
| | 19,699 |
| | 16,142 |
| | 16,887 |
| | 14,468 |
|
| Net income from discontinued operations (1) | 1,184 |
| | 1,047 |
| | 1,245 |
| | 2,065 |
| | 1,455 |
|
| Net income before attribution to noncontrolling interests | 18,699 |
| | 20,746 |
| | 17,387 |
| | 18,952 |
| | 15,923 |
|
| Less: Net income attributable to noncontrolling interests | 1,147 |
| | 1,110 |
| | 989 |
| | 911 |
| | 921 |
|
| Net income attributable to the Company | $ | 17,552 |
| | $ | 19,636 |
| | $ | 16,398 |
| | $ | 18,041 |
| | $ | 15,002 |
|
Boston Private Financial Holdings, Inc.
Selected Financial Data (Unaudited)
|
| | | | | | | |
| | Year Ended |
| | December 31,
2016 | | December 31,
2015 |
| Interest and dividend income: | (In thousands, except share and per share data) |
| Loans | $ | 201,349 |
| | $ | 192,184 |
|
| Taxable investment securities | 6,230 |
| | 4,403 |
|
| Non-taxable investment securities | 5,754 |
| | 4,758 |
|
| Mortgage-backed securities | 12,416 |
| | 10,933 |
|
| Federal funds sold and other | 1,890 |
| | 1,390 |
|
| Total interest and dividend income | 227,639 |
| | 213,668 |
|
| Interest expense: | | | |
| Deposits | 16,571 |
| | 16,002 |
|
| Federal Home Loan Bank borrowings | 8,008 |
| | 7,959 |
|
| Junior subordinated debentures | 2,427 |
| | 3,875 |
|
| Repurchase agreements and other short-term borrowings | 195 |
| | 62 |
|
| Total interest expense | 27,201 |
| | 27,898 |
|
| Net interest income | 200,438 |
| | 185,770 |
|
| Provision/ (credit) for loan losses | (6,935 | ) | | (1,555 | ) |
| Net interest income after provision/ (credit) for loan losses | 207,373 |
| | 187,325 |
|
| Fees and other income: | | | |
| Investment management fees | 44,410 |
| | 45,694 |
|
| Wealth advisory fees | 50,581 |
| | 50,437 |
|
| Wealth management and trust fees | 43,980 |
| | 51,309 |
|
| Other banking fee income | 12,050 |
| | 8,440 |
|
| Gain on sale of loans, net | 667 |
| | 1,207 |
|
| Total core fees and income | 151,688 |
| | 157,087 |
|
| Gain/ (loss) on sale of investments, net | 521 |
| | 236 |
|
| Gain/ (loss) on OREO, net | 306 |
| | 124 |
|
| Gain on sale of offices | 2,862 |
| | — |
|
| Other | 3,410 |
| | 3,722 |
|
| Total other income | 7,099 |
| | 4,082 |
|
| Operating expense: | | | |
| Salaries and employee benefits | 163,767 |
| | 159,401 |
|
| Occupancy and equipment | 39,075 |
| | 37,183 |
|
| Professional services | 11,576 |
| | 12,861 |
|
| Marketing and business development | 7,626 |
| | 9,063 |
|
| Contract services and data processing | 7,024 |
| | 6,037 |
|
| Amortization of intangibles | 6,282 |
| | 6,711 |
|
| Impairment of goodwill | 9,528 |
| | — |
|
| FDIC insurance | 3,484 |
| | 3,979 |
|
| Restructuring | 2,017 |
| | 3,724 |
|
| Other | 14,574 |
| | 16,222 |
|
| Total operating expense | 264,953 |
| | 255,181 |
|
| Income before income taxes | 101,207 |
| | 93,313 |
|
| Income tax expense | 30,963 |
| | 30,392 |
|
| Net income from continuing operations | 70,244 |
| | 62,921 |
|
| Net income from discontinued operations (1) | 5,541 |
| | 6,411 |
|
| Net income before attribution to noncontrolling interests | 75,785 |
| | 69,332 |
|
| Less: Net income attributable to noncontrolling interests | 4,157 |
| | 4,407 |
|
| Net income attributable to the Company | $ | 71,628 |
| | $ | 64,925 |
|
Boston Private Financial Holdings, Inc.
Selected Financial Data (Unaudited)
|
| | | | | | | | | | | | | | | | | | | |
| | Three Months Ended |
| PER SHARE DATA: | December 31,
2016 | | September 30,
2016 | | June 30,
2016 | | March 31,
2016 | | December 31,
2015 |
| | (In thousands, except share and per share data) |
| Calculation of Income for EPS: | | | | | | | | | |
| Net income attributable to the Company | $ | 17,552 |
| | $ | 19,636 |
| | $ | 16,398 |
| | $ | 18,041 |
| | $ | 15,002 |
|
| Adjustments to Net Income Attributable to the Company to arrive at Net Income Attributable to Common Shareholders, treasury stock method (2) | (1,798 | ) | | (1,006 | ) | | (970 | ) | | (289 | ) | | (1,182 | ) |
| Net Income Attributable to the Common Shareholders, treasury stock method | $ | 15,755 |
| | $ | 18,630 |
| | $ | 15,428 |
| | $ | 17,752 |
| | $ | 13,820 |
|
| | | | | | | | | | |
| End of Period Common Shares Outstanding | 83,731,769 |
| | 83,194,714 |
| | 83,380,426 |
| | 83,023,755 |
| | 83,410,961 |
|
| | | | | | | | | | |
| Weighted Average Shares Outstanding: | | | | | | | | | |
| Weighted average basic shares outstanding | 81,217,391 |
| | 81,301,499 |
| | 81,236,809 |
| | 81,301,499 |
| | 81,134,931 |
|
| Weighted average diluted shares outstanding (3) | 83,438,137 |
| | 83,562,283 |
| | 83,519,939 |
| | 83,279,866 |
| | 83,579,050 |
|
| | | | | | | | | | |
| Diluted Total Earnings per Share | $ | 0.19 |
| | $ | 0.22 |
| | $ | 0.18 |
| | $ | 0.21 |
| | $ | 0.17 |
|
|
| | | | | | | |
| | Year Ended |
| PER SHARE DATA: | December 31,
2016 | | December 31,
2015 |
| | (In thousands, except share and per share data) |
| Calculation of Income for EPS: | | | |
| Net income attributable to the Company | $ | 71,628 |
| | $ | 64,925 |
|
| Adjustments to Net Income Attributable to the Company to arrive at Net Income Attributable to Common Shareholders, treasury stock method (2) | (4,063 | ) | | (3,011 | ) |
| Net Income Attributable to the Common Shareholders, treasury stock method | $ | 67,565 |
| | $ | 61,914 |
|
| | | | |
| Weighted Average Shares Outstanding: | | | |
| Weighted average basic shares outstanding | 81,264,273 |
| | 80,885,253 |
|
| Weighted average diluted shares outstanding (3) | 83,209,126 |
| | 83,225,153 |
|
| | | | |
| Diluted Total Earnings per Share | $ | 0.81 |
| | $ | 0.74 |
|
| | | | |
Boston Private Financial Holdings, Inc.
Selected Financial Data (Unaudited)
|
| | | | | | | | | | | | | | | | | | | |
| (In thousands, except per share data) | December 31,
2016 | | September 30,
2016 | | June 30,
2016 | | March 31,
2016 | | December 31,
2015 |
| FINANCIAL DATA: |
| Book Value Per Common Share | $ | 8.61 |
| | $ | 8.82 |
| | $ | 8.71 |
| | $ | 8.60 |
| | $ | 8.38 |
|
| Tangible Book Value Per Share (4) | $ | 6.59 |
| | $ | 6.65 |
| | $ | 6.53 |
| | $ | 6.39 |
| | $ | 6.16 |
|
| Market Price Per Share | $ | 16.55 |
| | $ | 12.83 |
| | $ | 11.78 |
| | $ | 11.45 |
| | $ | 11.34 |
|
| | | | | | | | | | |
| ASSETS UNDER MANAGEMENT AND ADVISORY: | | | | | | | | | |
| Wealth Management and Trust | $ | 7,008,000 |
| | $ | 7,334,000 |
| | $ | 7,313,000 |
| | $ | 7,137,000 |
| | $ | 7,976,000 |
|
| Investment Managers | 10,571,000 |
| | 10,176,000 |
| | 10,006,000 |
| | 9,838,000 |
| | 9,952,000 |
|
| Wealth Advisory | 9,989,000 |
| | 10,028,000 |
| | 9,974,000 |
| | 9,857,000 |
| | 9,688,000 |
|
| Less: Inter-company Relationship | (11,000 | ) | | (11,000 | ) | | (17,000 | ) | | (21,000 | ) | | (21,000 | ) |
| Total Assets Under Management and Advisory | $ | 27,557,000 |
| | $ | 27,527,000 |
| | $ | 27,276,000 |
| | $ | 26,811,000 |
| | $ | 27,595,000 |
|
| | | | | | | | | | |
| FINANCIAL RATIOS: | | | | | | | | | |
| Total Equity/ Total Assets | 9.64 | % | | 10.17 | % | | 10.21 | % | | 10.28 | % | | 9.90 | % |
| Tangible Common Equity/ Tangible Assets (4) | 7.07 | % | | 7.38 | % | | 7.36 | % | | 7.34 | % | | 6.98 | % |
| Tier I Common Equity/ Risk Weighted Assets (4) | 10.00 | % | | 10.02 | % | | 9.95 | % | | 9.92 | % | | 9.80 | % |
| Allowance for Loan Losses/ Total Loans | 1.28 | % | | 1.32 | % | | 1.32 | % | | 1.35 | % | | 1.37 | % |
| Allowance for Loan Losses/ Nonaccrual Loans | 451 | % | | 471 | % | | 395 | % | | 314 | % | | 295 | % |
| Return on Average Assets - Three Months Ended (Annualized) | 0.89 | % | | 1.03 | % | | 0.88 | % | | 0.99 | % | | 0.81 | % |
| Return on Average Common Equity - Three Months Ended (Annualized) (5) | 9.07 | % | | 10.20 | % | | 8.68 | % | | 9.84 | % | | 8.06 | % |
| Return on Average Tangible Common Equity - Three Months Ended (Annualized) (5) | 12.75 | % | | 14.30 | % | | 12.43 | % | | 14.11 | % | | 11.92 | % |
| Efficiency Ratio - Three Months Ended (6) | 61.87 | % | | 65.04 | % | | 70.41 | % | | 70.87 | % | | 71.59 | % |
| | | | | | | | | | |
| DEPOSIT DETAIL: | | | | | | | | | |
| Demand deposits (noninterest-bearing) | $ | 1,753,648 |
| | $ | 1,770,631 |
| | $ | 1,636,273 |
| | $ | 1,609,669 |
| | $ | 1,689,604 |
|
| NOW | 578,657 |
| | 556,096 |
| | 547,777 |
| | 565,394 |
| | 588,337 |
|
| Savings | 74,162 |
| | 74,866 |
| | 70,553 |
| | 76,019 |
| | 72,336 |
|
| Money market | 3,102,048 |
| | 2,879,952 |
| | 2,771,080 |
| | 2,959,328 |
| | 3,105,172 |
|
| Certificates of deposit | 576,631 |
| | 530,698 |
| | 510,409 |
| | 576,450 |
| | 584,988 |
|
| Total Deposits | $ | 6,085,146 |
| | $ | 5,812,243 |
| | $ | 5,536,092 |
| | $ | 5,786,860 |
| | $ | 6,040,437 |
|
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: | 12/31/16 | 09/30/16 | 12/31/15 | | 12/31/16 | 09/30/16 | 12/31/15 | | 12/31/16 | 09/30/16 | 12/31/15 |
| AVERAGE ASSETS | | | | | | | | | | | |
| Interest-Earning Assets: | | | | | | | | | | | |
| Cash and Investments: | | | | | | | | | | | |
| Taxable investment securities | $ | 375,913 |
| $ | 372,852 |
| $ | 368,573 |
| | $ | 1,592 |
| $ | 1,537 |
| $ | 1,239 |
| | 1.69 | % | 1.65 | % | 1.35 | % |
| Non-taxable investment securities (9) | 285,330 |
| 271,864 |
| 258,755 |
| | 2,338 |
| 2,221 |
| 2,074 |
| | 3.28 | % | 3.27 | % | 3.21 | % |
| Mortgage-backed securities | 679,644 |
| 629,748 |
| 526,987 |
| | 3,290 |
| 3,079 |
| 2,863 |
| | 1.94 | % | 1.96 | % | 2.17 | % |
| Federal funds sold and other | 130,740 |
| 152,892 |
| 220,618 |
| | 508 |
| 469 |
| 449 |
| | 1.53 | % | 1.20 | % | 0.80 | % |
| Total Cash and Investments | 1,471,627 |
| 1,427,356 |
| 1,374,933 |
| | 7,728 |
| 7,306 |
| 6,625 |
| | 2.10 | % | 2.05 | % | 1.92 | % |
| Loans (10): | | | | | | | | | | | |
| Commercial and Industrial (9) | 1,110,268 |
| 1,065,787 |
| 1,053,290 |
| | 10,892 |
| 10,626 |
| 10,865 |
| | 3.84 | % | 3.90 | % | 4.04 | % |
| Commercial Real Estate (9) | 2,109,601 |
| 1,976,327 |
| 1,897,943 |
| | 21,153 |
| 19,860 |
| 19,981 |
| | 3.92 | % | 3.93 | % | 4.12 | % |
| Construction and Land | 96,242 |
| 117,183 |
| 182,648 |
| | 1,018 |
| 1,263 |
| 1,634 |
| | 4.14 | % | 4.22 | % | 3.50 | % |
| Residential | 2,350,644 |
| 2,300,392 |
| 2,224,614 |
| | 17,999 |
| 17,812 |
| 17,272 |
| | 3.06 | % | 3.10 | % | 3.11 | % |
| Home Equity | 117,985 |
| 122,505 |
| 117,892 |
| | 1,050 |
| 1,105 |
| 1,015 |
| | 3.54 | % | 3.59 | % | 3.41 | % |
| Other Consumer | 188,908 |
| 182,315 |
| 166,184 |
| | 1,323 |
| 1,154 |
| 967 |
| | 2.79 | % | 2.52 | % | 2.31 | % |
| Total Loans | 5,973,648 |
| 5,764,509 |
| 5,642,571 |
| | 53,435 |
| 51,820 |
| 51,734 |
| | 3.53 | % | 3.55 | % | 3.62 | % |
| Total Earning Assets | 7,445,275 |
| 7,191,865 |
| 7,017,504 |
| | 61,163 |
| 59,126 |
| 58,359 |
| | 3.25 | % | 3.25 | % | 3.28 | % |
| LESS: Allowance for Loan Losses | 79,440 |
| 76,424 |
| 79,389 |
| | | | | | | | |
| Cash and due From Banks (Non-Interest Bearing) | 39,133 |
| 39,301 |
| 39,453 |
| | | | | | | | |
| Other Assets | 427,545 |
| 445,517 |
| 411,642 |
| | | | | | | | |
| TOTAL AVERAGE ASSETS | $ | 7,832,513 |
| $ | 7,600,259 |
| $ | 7,389,210 |
| | | | | | | | |
| AVERAGE LIABILITIES, RNCI, AND SHAREHOLDERS' EQUITY | | | | | | | | | | | |
| Interest-Bearing Liabilities: | | | | | | | | | | | |
| Interest-Bearing Deposits (10): | | | | | | | | | | | |
| NOW | $ | 567,538 |
| $ | 551,085 |
| $ | 512,973 |
| | $ | 126 |
| $ | 120 |
| $ | 82 |
| | 0.09 | % | 0.09 | % | 0.06 | % |
| Savings | 76,033 |
| 76,999 |
| 73,380 |
| | 18 |
| 25 |
| 23 |
| | 0.09 | % | 0.13 | % | 0.12 | % |
| Money Market | 2,969,292 |
| 2,922,687 |
| 3,063,533 |
| | 2,807 |
| 2,877 |
| 2,995 |
| | 0.38 | % | 0.39 | % | 0.39 | % |
| Certificates of Deposit | 563,045 |
| 560,546 |
| 593,286 |
| | 1,201 |
| 1,141 |
| 1,181 |
| | 0.85 | % | 0.81 | % | 0.79 | % |
| Total Interest-Bearing Deposits (14) | 4,175,908 |
| 4,111,317 |
| 4,243,172 |
| | 4,152 |
| 4,163 |
| 4,281 |
| | 0.40 | % | 0.40 | % | 0.40 | % |
| Junior Subordinated Debentures | 106,363 |
| 106,363 |
| 106,363 |
| | 674 |
| 591 |
| 973 |
| | 2.48 | % | 2.17 | % | 3.58 | % |
| FHLB Borrowings and Other | 742,247 |
| 624,528 |
| 491,115 |
| | 2,064 |
| 1,978 |
| 1,968 |
| | 1.09 | % | 1.24 | % | 1.57 | % |
| Total Interest-Bearing Liabilities | 5,024,518 |
| 4,842,208 |
| 4,840,650 |
| | 6,890 |
| 6,732 |
| 7,222 |
| | 0.54 | % | 0.55 | % | 0.59 | % |
Noninterest Bearing Demand Deposits (10) (14) | 1,870,130 |
| 1,824,548 |
| 1,673,122 |
| | | | | | | | |
| Payables and Other Liabilities | 140,006 |
| 135,901 |
| 110,951 |
| | | | | | | | |
| Total Average Liabilities | 7,034,654 |
| 6,802,657 |
| 6,624,723 |
| | | | | | | | |
| Redeemable Noncontrolling Interests | 20,393 |
| 19,504 |
| 21,337 |
| | | | | | | | |
| Average Shareholders' Equity | 777,466 |
| 778,098 |
| 743,150 |
| | | | | | | | |
| TOTAL AVERAGE LIABILITIES, RNCI, AND SHAREHOLDERS' EQUITY | $ | 7,832,513 |
| $ | 7,600,259 |
| $ | 7,389,210 |
| | | | | | | | |
| Net Interest Income - on a Fully Taxable Equivalent Basis (FTE) | | | | | $ | 54,273 |
| $ | 52,394 |
| $ | 51,137 |
| | | | |
| LESS: FTE Adjustment (9) | | | | | 2,754 |
| 2,523 |
| 2,997 |
| | | | |
| Net Interest Income (GAAP Basis) | | | | | $ | 51,519 |
| $ | 49,871 |
| $ | 48,140 |
| | | | |
| Interest Rate Spread | | | | | | | | | 2.71 | % | 2.70 | % | 2.69 | % |
| Bank only Net Interest Margin | | | | | | | | | 2.91 | % | 2.92 | % | 2.94 | % |
| Net Interest Margin | | | | | | | | | 2.88 | % | 2.88 | % | 2.88 | % |
Boston Private Financial Holdings, Inc.
Selected Financial Data (Unaudited)
|
| | | | | | | | | | | | | | | | | | |
| | Average Balance | | Interest Income/Expense | | Average Yield/Rate |
| (In thousands) | Year Ended | | Year Ended | | Year Ended |
| AVERAGE BALANCE SHEET: | 12/31/16 | 12/31/15 | | 12/31/16 | 12/31/15 | | 12/31/16 | 12/31/15 |
| AVERAGE ASSETS | | | | | | | | |
| Interest-Earning Assets: | | | | | | | | |
| Cash and Investments: | | | | | | | | |
| Taxable investment securities | $ | 373,937 |
| $ | 343,130 |
| | $ | 6,230 |
| $ | 4,403 |
| | 1.67 | % | 1.28 | % |
| Non-taxable investment securities (9) | 270,320 |
| 245,402 |
| | 8,850 |
| 7,320 |
| | 3.27 | % | 2.98 | % |
| Mortgage-backed securities | 615,873 |
| 527,057 |
| | 12,416 |
| 10,933 |
| | 2.02 | % | 2.07 | % |
| Federal funds sold and other | 152,616 |
| 167,847 |
| | 1,890 |
| 1,390 |
| | 1.24 | % | 0.83 | % |
| Total Cash and Investments | 1,412,746 |
| 1,283,436 |
| | 29,386 |
| 24,046 |
| | 2.08 | % | 1.87 | % |
| Loans (10): | | | | | | | | |
| Commercial and Industrial (9) | 1,081,658 |
| 1,000,139 |
| | 43,250 |
| 42,879 |
| | 4.00 | % | 4.29 | % |
| Commercial Real Estate (9) | 1,964,544 |
| 1,820,142 |
| | 80,369 |
| 76,770 |
| | 4.09 | % | 4.22 | % |
| Construction and Land | 134,651 |
| 156,669 |
| | 5,385 |
| 5,404 |
| | 4.00 | % | 3.45 | % |
| Residential | 2,284,478 |
| 2,183,830 |
| | 70,553 |
| 67,648 |
| | 3.09 | % | 3.10 | % |
| Home Equity | 120,878 |
| 117,520 |
| | 4,310 |
| 4,084 |
| | 3.57 | % | 3.48 | % |
| Other Consumer | 176,683 |
| 167,297 |
| | 4,516 |
| 3,872 |
| | 2.56 | % | 2.31 | % |
| Total Loans | 5,762,892 |
| 5,445,597 |
| | 208,383 |
| 200,657 |
| | 3.62 | % | 3.68 | % |
| Total Earning Assets | 7,175,638 |
| 6,729,033 |
| | 237,769 |
| 224,703 |
| | 3.31 | % | 3.34 | % |
| LESS: Allowance for Loan Losses | 78,368 |
| 78,164 |
| | | | | | |
| Cash and due From Banks (Non-Interest Bearing) | 39,669 |
| 39,513 |
| | | | | | |
| Other Assets | 430,972 |
| 410,375 |
| | | | | | |
| TOTAL AVERAGE ASSETS | $ | 7,567,911 |
| $ | 7,100,757 |
| | | | | | |
| AVERAGE LIABILITIES, RNCI, AND SHAREHOLDERS' EQUITY | | | | | | | | |
| Interest-Bearing Liabilities: | | | | | | | | |
| Interest-Bearing Deposits (10): | | | | | | | | |
| NOW | $ | 553,981 |
| $ | 516,720 |
| | $ | 437 |
| $ | 318 |
| | 0.08 | % | 0.06 | % |
| Savings | 75,977 |
| 72,275 |
| | 89 |
| 81 |
| | 0.12 | % | 0.11 | % |
| Money Market | 2,960,702 |
| 2,894,615 |
| | 11,422 |
| 10,871 |
| | 0.39 | % | 0.38 | % |
| Certificates of Deposit | 565,274 |
| 597,153 |
| | 4,623 |
| 4,732 |
| | 0.82 | % | 0.79 | % |
| Total Interest-Bearing Deposits (14) | 4,155,934 |
| 4,080,763 |
| | 16,571 |
| 16,002 |
| | 0.40 | % | 0.39 | % |
| Junior Subordinated Debentures | 106,363 |
| 106,363 |
| | 2,427 |
| 3,875 |
| | 2.28 | % | 3.64 | % |
| FHLB Borrowings and Other | 652,998 |
| 516,237 |
| | 8,203 |
| 8,021 |
| | 1.26 | % | 1.55 | % |
| Total Interest-Bearing Liabilities | 4,915,295 |
| 4,703,363 |
| | 27,201 |
| 27,898 |
| | 0.55 | % | 0.59 | % |
Noninterest Bearing Demand
Deposits (10) (14) | 1,736,637 |
| 1,542,254 |
| | | | | | |
| Payables and Other Liabilities | 126,039 |
| 103,669 |
| | | | | | |
| Total Average Liabilities | 6,777,971 |
| 6,349,286 |
| | | | | | |
| Redeemable Noncontrolling Interests | 20,323 |
| 21,982 |
| | | | | | |
| Average Shareholders' Equity | 769,617 |
| 729,489 |
| | | | | | |
| TOTAL AVERAGE LIABILITIES, RNCI, AND SHAREHOLDERS' EQUITY | $ | 7,567,911 |
| $ | 7,100,757 |
| | | | | | |
| Net Interest Income - on a Fully Taxable Equivalent Basis (FTE) | | | | $ | 210,568 |
| $ | 196,805 |
| | | |
| LESS: FTE Adjustment (9) | | | | 10,130 |
| 11,035 |
| | | |
| Net Interest Income (GAAP Basis) | | | | $ | 200,438 |
| $ | 185,770 |
| | | |
| Interest Rate Spread | | | | | | | 2.76 | % | 2.75 | % |
| Bank only Net Interest Margin | | | | | | | 2.95 | % | 2.99 | % |
| Net Interest Margin | | | | | | | 2.93 | % | 2.92 | % |
Boston Private Financial Holdings, Inc.
Selected Financial Data (Unaudited)
|
| | | | | | | | | | | | | | | | | | | |
| (In thousands) | December 31,
2016 | | September 30,
2016 | | June 30,
2016 | | March 31,
2016 | | December 31,
2015 |
| LOAN DATA (11): | | | | |
| Other Commercial and Industrial Loans: | | | | | | | | | |
| New England | $ | 493,451 |
| | $ | 461,201 |
| | $ | 428,515 |
| | $ | 457,520 |
| | $ | 500,389 |
|
| San Francisco Bay Area | 50,578 |
| | 59,936 |
| | 64,762 |
| | 66,629 |
| | 70,702 |
|
| Southern California | 67,341 |
| | 67,583 |
| | 66,379 |
| | 68,640 |
| | 61,928 |
|
| Total Other Commercial and Industrial Loans | $ | 611,370 |
| | $ | 588,720 |
| | $ | 559,656 |
| | $ | 592,789 |
| | $ | 633,019 |
|
| Commercial Tax Exempt Loans: | | | | | | | | | |
| New England | $ | 317,691 |
| | $ | 263,418 |
| | $ | 260,739 |
| | $ | 268,270 |
| | $ | 267,595 |
|
| San Francisco Bay Area | 69,064 |
| | 69,366 |
| | 51,462 |
| | 51,756 |
| | 52,052 |
|
| Southern California | 11,849 |
| | 11,918 |
| | 11,986 |
| | 12,053 |
| | 12,120 |
|
| Total Commercial Tax Exempt Loans | $ | 398,604 |
| | $ | 344,702 |
| | $ | 324,187 |
| | $ | 332,079 |
| | $ | 331,767 |
|
| Total Commercial and Industrial Loans | $ | 1,009,974 |
| | 933,422 |
| | 883,843 |
| | 924,868 |
| | 964,786 |
|
| Commercial Real Estate Loans: | | | | | | | | | |
| New England | $ | 1,012,284 |
| | $ | 987,758 |
| | $ | 923,035 |
| | $ | 940,149 |
| | $ | 925,402 |
|
| San Francisco Bay Area | 637,042 |
| | 611,224 |
| | 633,735 |
| | 611,461 |
| | 622,123 |
|
| Southern California | 652,918 |
| | 621,336 |
| | 579,616 |
| | 519,012 |
| | 513,378 |
|
| Total Commercial Real Estate Loans | $ | 2,302,244 |
| | $ | 2,220,318 |
| | $ | 2,136,386 |
| | $ | 2,070,622 |
| | $ | 2,060,903 |
|
| Construction and Land Loans: | | | | | | | | | |
| New England | $ | 47,434 |
| | $ | 56,268 |
| | $ | 90,408 |
| | $ | 106,258 |
| | $ | 106,048 |
|
| San Francisco Bay Area | 29,629 |
| | 26,400 |
| | 36,808 |
| | 35,281 |
| | 52,876 |
|
| Southern California | 27,776 |
| | 16,028 |
| | 15,333 |
| | 25,135 |
| | 24,510 |
|
| Total Construction and Land Loans | $ | 104,839 |
| | $ | 98,696 |
| | $ | 142,549 |
| | $ | 166,674 |
| | $ | 183,434 |
|
| Residential Loans: | | | | | | | | | |
| New England | $ | 1,456,592 |
| | $ | 1,409,385 |
| | $ | 1,385,102 |
| | $ | 1,361,547 |
| | $ | 1,368,192 |
|
| San Francisco Bay Area | 473,102 |
| | 476,986 |
| | 470,694 |
| | 463,645 |
| | 462,327 |
|
| Southern California | 450,167 |
| | 429,719 |
| | 424,320 |
| | 391,683 |
| | 399,021 |
|
| Total Residential Loans | $ | 2,379,861 |
| | $ | 2,316,090 |
| | $ | 2,280,116 |
| | $ | 2,216,875 |
| | $ | 2,229,540 |
|
| Home Equity Loans: | | | | | | | | | |
| New England | $ | 87,280 |
| | $ | 90,592 |
| | $ | 91,728 |
| | $ | 84,693 |
| | $ | 83,712 |
|
| San Francisco Bay Area | 25,129 |
| | 23,826 |
| | 26,714 |
| | 26,134 |
| | 28,966 |
|
| Southern California | 6,408 |
| | 6,851 |
| | 7,044 |
| | 7,980 |
| | 7,150 |
|
| Total Home Equity Loans | $ | 118,817 |
| | $ | 121,269 |
| | $ | 125,486 |
| | $ | 118,807 |
| | $ | 119,828 |
|
| Other Consumer Loans: | | | | | | | | | |
| New England | $ | 186,680 |
| | $ | 167,140 |
| | $ | 166,998 |
| | $ | 145,450 |
| | $ | 152,984 |
|
| San Francisco Bay Area | 7,517 |
| | 6,764 |
| | 8,299 |
| | 8,347 |
| | 4,530 |
|
| Southern California | 4,422 |
| | 5,799 |
| | 7,820 |
| | 6,538 |
| | 3,207 |
|
| Total Other Consumer Loans | $ | 198,619 |
| | $ | 179,703 |
| | $ | 183,117 |
| | $ | 160,335 |
| | $ | 160,721 |
|
| Total Loans: | | | | | | | | | |
| New England | $ | 3,601,412 |
| | $ | 3,435,762 |
| | $ | 3,346,525 |
| | $ | 3,363,887 |
| | $ | 3,404,322 |
|
| San Francisco Bay Area | 1,292,061 |
| | 1,274,502 |
| | 1,292,474 |
| | 1,263,253 |
| | 1,293,576 |
|
| Southern California | 1,220,881 |
| | 1,159,234 |
| | 1,112,498 |
| | 1,031,041 |
| | 1,021,314 |
|
| Total Loans | $ | 6,114,354 |
| | $ | 5,869,498 |
| | $ | 5,751,497 |
| | $ | 5,658,181 |
| | $ | 5,719,212 |
|
Boston Private Financial Holdings, Inc.
Selected Financial Data (Unaudited)
|
| | | | | | | | | | | | | | | | | | | |
| (In thousands) | December 31,
2016 | | September 30,
2016 | | June 30,
2016 | | March 31,
2016 | | December 31,
2015 |
| CREDIT QUALITY (11): | | | | |
| Special Mention Loans: | | | | | | | | | |
| New England | $ | 14,750 |
| | $ | 25,248 |
| | $ | 27,903 |
| | $ | 38,927 |
| | $ | 40,121 |
|
| San Francisco Bay Area | 21,901 |
| | 22,786 |
| | 24,381 |
| | 23,288 |
| | 15,764 |
|
| Southern California | 884 |
| | 6,278 |
| | 15,044 |
| | 24,710 |
| | 13,326 |
|
| Total Special Mention Loans | $ | 37,535 |
| | $ | 54,312 |
| | $ | 67,328 |
| | $ | 86,925 |
| | $ | 69,211 |
|
| Accruing Substandard Loans (12): | | | | | | | | | |
| New England | $ | 10,972 |
| | $ | 19,748 |
| | $ | 17,447 |
| | $ | 19,157 |
| | $ | 22,026 |
|
| San Francisco Bay Area | 15,890 |
| | 19,157 |
| | 19,750 |
| | 20,235 |
| | 19,990 |
|
| Southern California | 36,809 |
| | 49,148 |
| | 27,027 |
| | 16,299 |
| | 16,398 |
|
| Total Accruing Substandard Loans | $ | 63,671 |
| | $ | 88,053 |
| | $ | 64,224 |
| | $ | 55,691 |
| | $ | 58,414 |
|
| Nonaccruing Loans: | | | | | | | | | |
| New England | $ | 10,081 |
| | $ | 11,020 |
| | $ | 13,028 |
| | $ | 17,988 |
| | $ | 19,572 |
|
| San Francisco Bay Area | 2,989 |
| | 3,543 |
| | 4,196 |
| | 4,369 |
| | 4,977 |
|
| Southern California | 4,245 |
| | 1,928 |
| | 1,964 |
| | 1,999 |
| | 2,022 |
|
| Total Nonaccruing Loans | $ | 17,315 |
| | $ | 16,491 |
| | $ | 19,188 |
| | $ | 24,356 |
| | $ | 26,571 |
|
| Other Real Estate Owned: | | | | | | | | | |
| New England | $ | 1,690 |
| | $ | 1,800 |
| | $ | 2,042 |
| | $ | 98 |
| | $ | 191 |
|
| San Francisco Bay Area | — |
| | — |
| | — |
| | — |
| | 585 |
|
| Southern California | — |
| | — |
| | — |
| | — |
| | — |
|
| Total Other Real Estate Owned | $ | 1,690 |
| | $ | 1,800 |
| | $ | 2,042 |
| | $ | 98 |
| | $ | 776 |
|
| Loans 30-89 Days Past Due and Accruing (13): | | | | | | | | | |
| New England | $ | 10,311 |
| | $ | 2,735 |
| | $ | 5,213 |
| | $ | 4,723 |
| | $ | 7,118 |
|
| San Francisco Bay Area | 591 |
| | 1,018 |
| | 70 |
| | 986 |
| | 2,806 |
|
| Southern California | 4,235 |
| | 836 |
| | 2,343 |
| | 2,598 |
| | 3,170 |
|
| Total Loans 30-89 Days Past Due and Accruing | $ | 15,137 |
| | $ | 4,589 |
| | $ | 7,626 |
| | $ | 8,307 |
| | $ | 13,094 |
|
| Loans (Charged-off)/ Recovered, Net for the Three Months Ended: | | | | | | | | | |
| New England | $ | 1,120 |
| | $ | 1,704 |
| | $ | 1,276 |
| | $ | (2,146 | ) | | $ | 120 |
|
| San Francisco Bay Area | 384 |
| | 318 |
| | 537 |
| | 3,454 |
| | 703 |
|
| Southern California | 33 |
| | 32 |
| | 48 |
| | (248 | ) | | 86 |
|
| Total Net Loans (Charged-off)/ Recovered | $ | 1,537 |
| | $ | 2,054 |
| | $ | 1,861 |
| | $ | 1,060 |
| | $ | 909 |
|
| Loans (Charged-off)/ Recovered, Net for the Twelve Months Ended: | | | | | | | | | |
| New England | $ | 1,954 |
| | | | | | | | $ | (502 | ) |
| San Francisco Bay Area | 4,693 |
| | | | | | | | 4,217 |
|
| Southern California | (135 | ) | | | | | | | | 502 |
|
| Total Net Loans (Charged-off)/ Recovered | $ | 6,512 |
| | | | | | | | $ | 4,217 |
|
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 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 and dividends paid on preferred stock. |
| |
| (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 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, 2015 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) | December 31,
2016 | | September 30,
2016 | | June 30,
2016 | | March 31,
2016 | | December 31,
2015 |
| Total Balance Sheet Assets | $ | 7,970,474 |
| | $ | 7,681,550 |
| | $ | 7,579,601 |
| | $ | 7,413,663 |
| | $ | 7,542,508 |
|
| LESS: Goodwill and Intangible Assets, net | (169,279 | ) | | (180,349 | ) | | (181,918 | ) | | (183,504 | ) | | (185,089 | ) |
| Tangible Assets (non-GAAP) | $ | 7,801,195 |
| | $ | 7,501,201 |
| | $ | 7,397,683 |
| | $ | 7,230,159 |
| | $ | 7,357,419 |
|
| Total Shareholders' Equity | $ | 768,481 |
| | $ | 781,488 |
| | $ | 774,140 |
| | $ | 762,145 |
| | $ | 746,613 |
|
| LESS: Series D Preferred Stock (non-convertible) | (47,753 | ) | | (47,753 | ) | | (47,753 | ) | | (47,753 | ) | | (47,753 | ) |
| LESS: Goodwill and Intangible Assets, net | (169,279 | ) | | (180,349 | ) | | (181,918 | ) | | (183,504 | ) | | (185,089 | ) |
| Total adjusting items | (217,032 | ) | | (228,102 | ) | | (229,671 | ) | | (231,257 | ) | | (232,842 | ) |
| Tangible Common Equity (non-GAAP) | $ | 551,449 |
| | $ | 553,386 |
| | $ | 544,469 |
| | $ | 530,888 |
| | $ | 513,771 |
|
| Total Equity/Total Assets | 9.64 | % | | 10.17 | % | | 10.21 | % | | 10.28 | % | | 9.90 | % |
| Tangible Common Equity/Tangible Assets (non-GAAP) | 7.07 | % | | 7.38 | % | | 7.36 | % | | 7.34 | % | | 6.98 | % |
| | | | | | | | | | |
| Total Risk Weighted Assets * | $ | 5,714,598 |
| | $ | 5,534,711 |
| | $ | 5,464,529 |
| | $ | 5,412,514 |
| | $ | 5,449,239 |
|
| Tier I Common Equity * | $ | 571,665 |
| | $ | 554,368 |
| | $ | 543,801 |
| | $ | 536,925 |
| | $ | 534,241 |
|
| Tier I Common Equity/ Risk Weighted Assets | 10.00 | % | | 10.02 | % | | 9.95 | % | | 9.92 | % | | 9.80 | % |
| | | | | | | | | | |
| End of Period Shares Outstanding | 83,731,769 |
| | 83,194,714 |
| | 83,380,426 |
| | 83,023,755 |
| | 83,410,961 |
|
| | | | | | | | | | |
| Book Value Per Common Share | $ | 8.61 |
| | $ | 8.82 |
| | $ | 8.71 |
| | $ | 8.60 |
| | $ | 8.38 |
|
| Tangible Book Value Per Share (non-GAAP) | $ | 6.59 |
| | $ | 6.65 |
| | $ | 6.53 |
| | $ | 6.39 |
| | $ | 6.16 |
|
* Risk Weighted Assets and Tier I Common Equity for December 31, 2016 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 |
| (In thousands) | December 31,
2016 | | September 30,
2016 | | June 30,
2016 | | March 31,
2016 | | December 31,
2015 |
| Total average shareholders' equity | $ | 777,466 |
| | $ | 778,098 |
| | $ | 765,063 |
| | $ | 755,400 |
| | $ | 743,150 |
|
| LESS: Average Series D preferred stock (non-convertible) | (47,753 | ) | | (47,753 | ) | | (47,753 | ) | | (47,753 | ) | | (47,753 | ) |
| Average common equity (non-GAAP) | 729,713 |
| | 730,345 |
| | 717,310 |
| | 707,647 |
| | 695,397 |
|
| LESS: Average goodwill and intangible assets, net | (179,535 | ) | | (181,191 | ) | | (182,787 | ) | | (184,415 | ) | | (185,983 | ) |
| Average Tangible Common Equity (non-GAAP) | $ | 550,178 |
| | $ | 549,154 |
| | $ | 534,523 |
| | $ | 523,232 |
| | $ | 509,414 |
|
| |
|
| |
| | | | | |
|
| Net income attributable to the Company | $ | 17,552 |
| | $ | 19,636 |
| | $ | 16,398 |
| | $ | 18,041 |
| | $ | 15,002 |
|
| LESS: Dividends on Series D preferred stock | (869 | ) | | (868 | ) | | (869 | ) | | (869 | ) | | (869 | ) |
| Common net income (non-GAAP) | 16,683 |
| | 18,768 |
| | 15,529 |
| | 17,172 |
| | 14,133 |
|
| ADD: Amortization of intangibles, net of tax (35%) | 1,002 |
| | 1,019 |
| | 1,031 |
| | 1,031 |
| | 1,169 |
|
| Tangible common net income (non-GAAP) | $ | 17,685 |
| | $ | 19,787 |
| | $ | 16,560 |
| | $ | 18,203 |
| | $ | 15,302 |
|
| | | | | | | | | | |
| Return on Average Equity - (Annualized) | 8.96 | % | | 10.01 | % | | 8.60 | % | | 9.69 | % | | 8.01 | % |
| Return on Average Common Equity - (Annualized) (non-GAAP) | 9.07 | % | | 10.20 | % | | 8.68 | % | | 9.84 | % | | 8.06 | % |
| Return on Average Tangible Common Equity - (Annualized) (non-GAAP) | 12.75 | % | | 14.30 | % | | 12.43 | % | | 14.11 | % | | 11.92 | % |
|
| | | | | | | |
| | Year Ended |
| (In thousands) | December 31,
2016 | | December 31,
2015 |
| Total average shareholders' equity | $ | 769,617 |
| | $ | 729,489 |
|
| LESS: Average Series D preferred stock (non-convertible) | (47,753 | ) | | (47,753 | ) |
| Average common equity (non-GAAP) | 721,864 |
| | 681,736 |
|
| LESS: Average goodwill and intangible assets, net | (181,976 | ) | | (188,533 | ) |
| Average Tangible Common Equity (non-GAAP) | $ | 539,888 |
| | $ | 493,203 |
|
| | | | |
| Net income attributable to the Company | $ | 71,628 |
| | $ | 64,925 |
|
| LESS: Dividends on Series D preferred stock | (3,475 | ) | | (3,475 | ) |
| Common net income (non-GAAP) | 68,153 |
| | 61,450 |
|
| ADD: Amortization of intangibles, net of tax (35%) | 4,083 |
| | 4,362 |
|
| Tangible common net income (non-GAAP) | $ | 72,236 |
| | $ | 65,812 |
|
| | | | |
| Return on Average Equity - (Annualized) | 9.31 | % | | 8.90 | % |
| Return on Average Common Equity - (Annualized) (non-GAAP) | 9.44 | % | | 9.01 | % |
| Return on Average Tangible Common Equity - (Annualized) (non-GAAP) | 13.38 | % | | 13.34 | % |
| | | | |
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 amortization of intangibles, goodwill impairment, and 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 amortization of intangibles, goodwill impairment, and restructuring; and from GAAP efficiency ratio to Non-GAAP efficiency ratio (FTE basis), excluding amortization of intangibles, goodwill impairment, and restructuring, are presented below:
|
| | | | | | | | | | | | | | | | | | | |
| | Three Months Ended |
| (In thousands) | December 31,
2016 | | September 30,
2016 | | June 30,
2016 | | March 31,
2016 | | December 31,
2015 |
| Income before income taxes (GAAP) | $ | 24,762 |
| | $ | 28,351 |
| | $ | 23,768 |
| | $ | 24,325 |
| | $ | 20,106 |
|
| ADD BACK: Provision/ (credit) for loan losses | (1,128 | ) | | (138 | ) | | (2,535 | ) | | (3,133 | ) | | (1,655 | ) |
| Pre-tax, pre-provision earnings (non-GAAP) | $ | 23,634 |
| | $ | 28,213 |
| | $ | 21,233 |
| | $ | 21,192 |
| | $ | 18,451 |
|
| | | | | | | | | | |
| Total operating expense (GAAP) | $ | 71,843 |
| | $ | 61,670 |
| | $ | 64,731 |
| | $ | 66,709 |
| | $ | 67,407 |
|
| Less: Amortization of intangibles | 1,542 |
| | 1,568 |
| | 1,586 |
| | 1,586 |
| | 1,799 |
|
| Less: Goodwill impairment | 9,528 |
| | — |
| | — |
| | — |
| | — |
|
| Less: Restructuring | — |
| | — |
| | 905 |
| | 1,112 |
| | 2,000 |
|
| Total operating expense (excluding amortization of intangibles, goodwill impairment, and restructuring) (non-GAAP) | $ | 60,773 |
| | $ | 60,102 |
| | $ | 62,240 |
| | $ | 64,011 |
| | $ | 63,608 |
|
| | | | | | | | | | |
| Net interest income | $ | 51,519 |
| | $ | 49,871 |
| | $ | 49,169 |
| | $ | 49,879 |
| | $ | 48,140 |
|
| Total core fees and income | 38,499 |
| | 37,896 |
| | 37,565 |
| | 37,728 |
| | 37,137 |
|
| Total other income | 5,459 |
| | 2,116 |
| | (770 | ) | | 294 |
| | 581 |
|
| FTE income | 2,754 |
| | 2,523 |
| | 2,437 |
| | 2,416 |
| �� | 2,997 |
|
| Total revenue (FTE basis) | $ | 98,231 |
| | $ | 92,406 |
| | $ | 88,401 |
| | $ | 90,317 |
| | $ | 88,855 |
|
| Efficiency Ratio (GAAP) | 75.25 | % | | 68.61 | % | | 75.30 | % | | 75.89 | % | | 78.51 | % |
| Efficiency Ratio, FTE Basis excluding amortization of intangibles, goodwill impairment, and restructuring (non-GAAP) | 61.87 | % | | 65.04 | % | | 70.41 | % | | 70.87 | % | | 71.59 | % |
|
| | | | | | | |
| | Year Ended |
| (In thousands) | December 31,
2016 | | December 31,
2015 |
| Income before income taxes (GAAP) | $ | 101,207 |
| | $ | 93,313 |
|
| ADD BACK: Provision/ (credit) for loan losses | (6,935 | ) | | (1,555 | ) |
| Pre-tax, pre-provision earnings (non-GAAP) | $ | 94,272 |
| | $ | 91,758 |
|
| | | | |
| Total operating expense (GAAP) | $ | 264,953 |
| | $ | 255,181 |
|
| Less: Amortization of intangibles | 6,282 |
| | 6,711 |
|
| Less: Goodwill impairment | 9,528 |
| | — |
|
| Less: Restructuring | 2,017 |
| | 3,724 |
|
| Total operating expense (excluding amortization of intangibles, goodwill impairment, and restructuring) (non-GAAP) | $ | 247,126 |
| | $ | 244,746 |
|
| | | | |
| Net interest income | $ | 200,438 |
| | $ | 185,770 |
|
| Total core fees and income | 151,688 |
| | 157,087 |
|
| Total other income | 7,099 |
| | 4,082 |
|
| FTE income | 10,130 |
| | 11,035 |
|
| Total revenue (FTE basis) | $ | 369,355 |
| | $ | 357,974 |
|
| Efficiency Ratio (GAAP) | 73.76 | % | | 73.55 | % |
| Efficiency Ratio, FTE Basis excluding amortization of intangibles, goodwill impairment, and restructuring (non-GAAP) | 66.91 | % | | 68.37 | % |
| |
| (7) | The Company uses certain non-GAAP financial measures, such as: net income attributable to the Company excluding notable items and diluted earnings per share excluding notable items 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 income attributable to the Company to non-GAAP net income attributable to the Company excluding notable items and from GAAP diluted earnings per share to non-GAAP diluted earnings per share excluding notable items are presented below:
|
| | | | | | | | | | | | | | | | | | | |
| | Three Months Ended |
| (In thousands, except share and per share data) | December 31,
2016 | | September 30,
2016 | | June 30,
2016 | | March 31,
2016 | | December 31,
2015 |
| Net income attributable to the Company (GAAP) | $ | 17,552 |
| | $ | 19,636 |
| | $ | 16,398 |
| | $ | 18,041 |
| | $ | 15,002 |
|
| LESS: Gain on sale of offices | 2,862 |
| | — |
| | — |
| | — |
| | — |
|
| ADD BACK: Impairment of goodwill | 9,528 |
| | — |
| | — |
| | — |
| | — |
|
| Tax effect at 35% statutory rate | (2,333 | ) | | — |
| | — |
| | — |
| | — |
|
Net income attributable to the Company excluding notable items (non-GAAP) | $ | 21,885 |
| | $ | 19,636 |
| | $ | 16,398 |
| | $ | 18,041 |
| | $ | 15,002 |
|
| | | | | | | | | | |
| Net Income Attributable to the Common Shareholders, treasury stock method (GAAP) | $ | 15,755 |
| | $ | 18,630 |
| | $ | 15,428 |
| | $ | 17,752 |
| | $ | 13,820 |
|
| LESS: Gain on sale of offices | 2,862 |
| | — |
| | — |
| | — |
| | — |
|
| ADD BACK: Impairment of goodwill | 9,528 |
| | — |
| | — |
| | — |
| | — |
|
| Tax effect at 35% statutory rate | (2,333 | ) | | — |
| | — |
| | — |
| | — |
|
| Net Income Attributable to the Common Shareholders, treasury stock method, excluding notable items (non-GAAP) | $ | 20,088 |
| | $ | 18,630 |
| | $ | 15,428 |
| | $ | 17,752 |
| | $ | 13,820 |
|
| | | | | | | | | | |
| Weighted average diluted shares outstanding (3) | 83,438,137 |
| | 83,562,283 |
| | 83,519,939 |
| | 83,279,866 |
| | 83,579,050 |
|
| | | | | | | | | | |
| Diluted Total Earnings per Share (GAAP) | $ | 0.19 |
| | $ | 0.22 |
| | $ | 0.18 |
| | $ | 0.21 |
| | $ | 0.17 |
|
| Diluted Total Earnings per Share, excluding notable items (non-GAAP) | $ | 0.24 |
| | $ | 0.22 |
| | $ | 0.18 |
| | $ | 0.21 |
| | $ | 0.17 |
|
| |
| (8) | The Company uses certain non-GAAP financial measures, such as: net interest income excluding interest recovered on previous nonaccrual loans and net interest margin excluding interest recovered on previous nonaccrual 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 nonaccrual loans; and from GAAP net interest margin to non-GAAP net interest margin excluding interest recovered on previous nonaccrual loans, are presented below:
|
| | | | | | | | | | | | | | | | | | | |
| | Three Months Ended |
| (In thousands) | December 31,
2016 | | September 30,
2016 | | June 30,
2016 | | March 31,
2016 | | December 31,
2015 |
| Net interest income (GAAP basis) | $ | 51,519 |
| | $ | 49,871 |
| | $ | 49,169 |
| | $ | 49,879 |
| | $ | 48,140 |
|
| ADD: FTE income | 2,754 |
| | 2,523 |
| | 2,437 |
| | 2,416 |
| | 2,997 |
|
| Net interest income, FTE basis | 54,273 |
| | 52,394 |
| | 51,606 |
| | 52,295 |
| | 51,137 |
|
| LESS: Interest recovered on previously nonaccrual loans | 365 |
| | 343 |
| | 565 |
| | 1,089 |
| | 255 |
|
| Net interest income, FTE basis, excluding interest recovered on previously nonaccrual loans (non-GAAP) | 53,908 |
| | 52,051 |
| | 51,041 |
| | 51,206 |
| | 50,882 |
|
| | | |
|
| | | | | |
|
|
| Net Interest Margin (FTE basis) | 2.88 | % | | 2.88 | % | | 2.91 | % | | 2.96 | % | | 2.88 | % |
| Net Interest Margin, FTE basis, excluding interest recovered on previously nonaccrual loans (non-GAAP) | 2.86 | % | | 2.86 | % | | 2.88 | % | | 2.90 | % | | 2.86 | % |
| |
| (9) | 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. |
| |
| (10) | Average Loans includes Loans Held for Sale and Nonaccrual Loans. Average Deposits includes Deposits Held for Sale, if any. |
| |
| (11) | The concentration of the Private Banking loan data and credit quality is primarily based on the location of the lender's regional offices. |
| |
| (12) | 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.
| |
| (13) | In addition to loans 30-89 days past due and accruing, at June 30, 2016, 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 San Francisco Bay Area region. At December 31, 2016, September 30, 2016, March 31, 2016, and December 31, 2015, the Company had no loans outstanding more than 90 days past due but still on accrual status. |
| |
| (14) | Average Total Deposits is the sum of Average Total Interest-Bearing Deposits and Average Noninterest Bearing Demand Deposits. |
