Second Quarter Highlights:
- Net Interest Income Growth: Net
Interest Income increased 9% year-over-year and decreased 1% linked
quarter to $49.2 million.
- Deposit and Loan Growth: Average
Total Deposits increased 6% and Average Total Loans grew 7%
year-over-year. Average Total Deposits and Average Total Loans were
both $5.7 billion for the quarter, reflecting a linked quarter
decrease of 3% and an increase of 2%, respectively.
- Assets Under Management: Total
Assets Under Management/Advisory (“AUM”) decreased 8%
year-over-year to $27.3 billion, reflecting negative net flows
partly offset by positive market action. On a linked quarter basis,
AUM increased 2% due to positive market action partly offset by
negative net flows.
- Provision Credit: The Company
recorded a provision credit of $2.5 million due to net recoveries
of $1.9 million and a decline in Criticized loans, compared to a
provision credit of $3.1 million for the first quarter of
2016.
Boston Private Financial Holdings, Inc. (NASDAQ: BPFH) (the
“Company” or “BPFH”) today reported second quarter 2016 GAAP Net
Income Attributable to the Company of $16.4 million, compared to
$18.0 million for the first quarter of 2016. Second quarter 2016
diluted earnings per share were $0.18, compared to $0.21 in the
first quarter of 2016 and $0.20 in the second quarter of 2015.
"We are pleased with the Company's overall performance amid a
turbulent macro environment," said Clayton G. Deutsch, CEO. "Our
Private Bank continues to deliver steady performance, while our
fee-based businesses demonstrated resiliency confronting market
pressure. We are excited about the geographic balance of new
business as we maintain our focus on improving our client offering
and increasing client introductions to position the Company
favorably for the long-term."
Core Fees and Income
Core Fees and Income were flat linked quarter at $37.6 million.
Year-over-year, Core Fees and Income are down 7% due primarily to
lower levels of AUM offset by higher Other Banking Fee Income.
AUM increased to $27.3 billion in the second quarter, up 2% from
$26.8 billion in the first quarter of 2016, reflecting positive
market action partly offset by negative net flows. AUM decreased 8%
year-over-year due to negative net flows partly offset by positive
market action. The Company experienced negative net flows of $199
million during the second quarter, compared to negative $761
million and negative $193 million in the first quarter of 2016 and
second quarter of 2015, respectively. Net flows attributable to
Boston Private Wealth for the second quarter were negative $39
million compared to negative $422 million in the first quarter of
2016 and negative $243 million in the second quarter of 2015.
Net Interest Income
Net Interest Income for the second quarter was $49.2 million,
down 1% from $49.9 million for the first quarter of 2016. On a
year-over-year basis, Net Interest Income increased 9% from $45.1
million. The current quarter includes $0.6 million of interest
recovered on previous nonaccrual loans while the first quarter of
2016 and second quarter of 2015 includes interest recoveries of
$1.1 million and $0.1 million, respectively. Excluding interest
recovered on previous nonaccrual loans, Net Interest Income on an
FTE basis was flat, while it increased 7% year-over-year.
Net Interest Margin was 2.91% for the second quarter, down five
basis points from 2.96% for the first quarter of 2016. Net Interest
Margin was up one basis point from 2.90% for the second quarter of
2015. Excluding interest recovered on previous nonaccrual loans,
Net Interest Margin was down 2 basis points linked quarter and
year-over-year to 2.88%.
Total Operating Expenses
Total Operating Expenses for the second quarter of 2016 were
$64.7 million, down 3% from $66.7 million for the first quarter of
2016. On a year-over-year basis, Total Operating Expenses increased
4% from $62.4 million, primarily due to higher occupancy and
restructuring expense. Restructuring Expense in the second quarter
of 2016 was $0.9 million while the first quarter of 2016 and the
second quarter of 2015 included Restructuring Expense of $1.1
million and $0.2 million, respectively.
Provision and Asset Quality
The Company recorded a provision credit of $2.5 million for the
second quarter of 2016, compared to a provision credit of $3.1
million for the first quarter of 2016 and no provision for the
second quarter of 2015. The provision credit was driven by net
recoveries of $1.9 million and a decline in Criticized Loans.
Criticized Loans decreased 10% linked quarter and year-over-year
to $150.7 million. Nonaccrual Loans (“Nonaccruals”) decreased 21%
to $19.2 million on a linked quarter basis. On a year-over-year
basis, Nonaccruals decreased 36% from $29.9 million. As a
percentage of Total Loans, Nonaccruals were 33 basis points at June
30, 2016, down 10 basis points from March 31, 2016, and down 21
basis points from June 30, 2015.
Additional credit metrics are listed below:
(In millions)
June 30,
2016 March 31, 2016 December 31,
2015 September 30, 2015 June 30,
2015 Total Criticized Loans $ 150.7 $ 166.9 $ 154.1 $ 160.9
$ 167.3
Total Loans 30-89 Days Past Due and
Accruing (12)
$ 7.6 $ 8.3 $ 13.1 $ 7.0 $ 4.3 Total Net Loans (Charged-off)/
Recovered $ 1.9 $ 1.1 $ 0.9 $ (1.6 ) $ 1.0
Allowance for Loan Losses/ Total Loans
1.32 % 1.35 % 1.37 % 1.41 % 1.43 %
Capital Ratios
Capital ratios are listed below:
June 30, 2016
March 31, 2016 December 31, 2015
September 30, 2015 June 30, 2015
BPFH Ratios: Total Risk-Based Capital * 14.0 % 14.0 % 13.9 %
13.8 % 13.9 % Tier I Risk-Based Capital * 12.7 % 12.7 % 12.6 % 12.6
% 12.7 % Tier I Leverage Capital * 9.6 % 9.5 % 9.5 % 9.6 % 9.9 %
TCE/TA (4) 7.4 % 7.3 % 7.0 % 7.2 % 7.2 %
Tier I Common Equity/ Risk Weighted Assets
*
10.0 % 9.9 % 9.8 % 9.7 % 9.8 %
*June 30, 2016 information is presented
based on estimated data.
Dividend Payments
Concurrent with the release of second quarter 2016 earnings, the
Board of Directors of the Company declared a cash dividend to
common shareholders of $0.10 per share. The record date for this
dividend is August 5, 2016, and the payment date is August 19,
2016.
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 August 15, 2016, and the payment date is September
15, 2016.
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 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, July 21, 2016, to discuss the financial results, business
highlights and outlook. To access the call:
Dial In #: (888) 317-6003
Elite Entry Number: 8680929
Replay Information:Available from July 21, 2016 at 12 noon until
July 28, 2016Dial In #: (877) 344-7529Conference Number:
10089337
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, Wisconsin, Texas and the
Washington D.C. area. The Company has a Private Banking balance
sheet of greater than $7 billion, and manages approximately $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.
Boston Private Financial
Holdings, Inc. Selected Financial Data
(Unaudited) (In
thousands, except share and per share data)
6/30/2016
3/31/2016 12/31/2015
9/30/2015 6/30/2015 Assets: Cash
and cash equivalents
$ 126,167 $ 113,946 $ 238,694 $
43,640 $ 63,099 Investment securities available for sale
1,191,523 1,151,529 1,084,510 1,023,255 992,007 Investment
securities held to maturity
105,297 111,337 116,352 121,679
128,258 Stock in Federal Home Loan Banks
44,374 34,202
35,181 35,518 35,668 Loans held for sale
4,677 5,383 8,072
7,685 19,512 Total loans
5,751,497 5,658,181 5,719,212
5,607,472 5,463,250 Less: Allowance for loan losses
75,753 76,427 78,500 79,246
78,251 Net loans
5,675,744 5,581,754 5,640,712
5,528,226 5,384,999 Other real estate owned (“OREO”)
2,042
98 776 776 929 Premises and equipment, net
31,752 31,575
31,036 30,841 31,337 Goodwill
152,082 152,082 152,082
152,082 152,082 Intangible assets, net
29,836 31,422 33,007
34,806 36,461 Fees receivable
11,129 11,041 11,258 11,308
12,486 Accrued interest receivable
18,061 17,590 17,950
17,039 16,383 Deferred income taxes, net
36,942 43,164
51,699 45,438 47,388 Other assets
149,975
128,540 121,179 128,235 125,330
Total assets
$ 7,579,601 $ 7,413,663 $ 7,542,508
$ 7,180,528 $ 7,045,939
Liabilities: Deposits
$ 5,536,092 $ 5,786,860 $ 6,040,437 $ 5,647,859 $
5,429,028 Deposits Held For Sale
110,558 — — — — Securities
sold under agreements to repurchase
43,304 63,182 58,215
35,698 26,660 Federal funds purchased
180,000 40,000 —
60,000 100,000 Federal Home Loan Bank borrowings
678,012
523,952 461,324 461,899 541,529 Junior subordinated debentures
106,363 106,363 106,363 106,363 106,363 Other liabilities
135,289 114,223 111,468
109,695 95,074 Total liabilities
6,789,618 6,634,580 6,777,807
6,421,514 6,298,654
Redeemable Noncontrolling
Interests 15,843 16,938 18,088 18,257 19,200
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
83,380 83,024 83,411 83,645 83,540 Additional paid-in
capital
597,989 599,825 600,670 598,968 597,424 Retained
earnings/ (accumulated deficit)
28,985 21,740 12,886 5,960
(1,003 ) Accumulated other comprehensive income/ (loss)
12,654 6,687 (1,500 ) 1,287
(2,525 ) Total Company’s shareholders’ equity
770,761
759,029 743,220 737,613 725,189
Noncontrolling interests
3,379 3,116
3,393 3,144 2,896 Total
shareholders’ equity
774,140 762,145
746,613 740,757 728,085 Total
liabilities, redeemable noncontrolling interests and shareholders’
equity
$ 7,579,601 $ 7,413,663 $ 7,542,508 $
7,180,528 $ 7,045,939
Boston Private Financial Holdings, Inc. Selected
Financial Data (Unaudited) Three Months Ended (In
thousands, except share and per share data)
6/30/2016
3/31/2016 12/31/2015
9/30/2015 6/30/2015
Interest and dividend income: Loans
$ 49,731 $
50,046 $ 49,463 $ 48,058 $ 46,663 Taxable investment securities
1,507 1,594 1,239 1,094 1,075 Non-taxable investment
securities
1,400 1,390 1,348 1,264 1,125 Mortgage-backed
securities
2,982 3,065 2,863 2,681 2,775 Federal funds sold
and other
405 507 449
425 282 Total interest and dividend
income
56,025 56,602
55,362 53,522 51,920
Interest
expense: Deposits
4,075 4,182 4,281 4,007 3,822 Federal
Home Loan Bank borrowings
2,139
1,953 1,960 2,051 2,017 Junior subordinated debentures
584
578 973 979 967 Repurchase agreements and other short-term
borrowings
58
10 8 12 29
Total interest expense
6,856 6,723
7,222 7,049 6,835 Net
interest income
49,169 49,879 48,140 46,473 45,085
Provision/ (credit) for loan losses
(2,535 )
(3,133 ) (1,655 ) 2,600 — Net
interest income after provision/ (credit) for loan losses
51,704 53,012 49,795
43,873 45,085
Fees and other income:
Investment management fees
10,627 10,658 10,889 11,360
11,731 Wealth advisory fees
12,551 12,712 12,569 12,515
12,678 Wealth management and trust fees
11,208 10,916 11,782
12,424 13,545 Other banking fee income
2,982 3,233 1,719
2,780 2,031 Gain on sale of loans, net
197
209 178 364 362
Total core fees and income
37,565
37,728 37,137 39,443
40,347 Gain/ (loss) on sale of investments, net
245 1 215 5
8 Gain/ (loss) on OREO, net
— 280 — 35 — Other
(1,015 ) 13 366
(37 ) 2,305 Total other income
(770 )
294 581 3 2,313
Operating expense: Salaries and employee benefits
40,614 42,560 39,520 37,938 39,816 Occupancy and equipment
9,928 9,587 9,989 9,064 9,095 Professional services
3,015 3,515 3,778 2,848 3,214 Marketing and business
development
1,811 2,170 4,001 2,008 1,706 Contract services
and data processing
1,737 1,679 1,505 1,600 1,495
Amortization of intangibles
1,586 1,586 1,799 1,655 1,655
FDIC insurance
1,015 1,020 1,089 916 963 Restructuring
905 1,112 2,000 1,504 220 Other
4,120
3,480 3,726 4,396
4,254 Total operating expense
64,731
66,709 67,407 61,929
62,418 Income before income taxes
23,768 24,325 20,106
21,390 25,327 Income tax expense
7,626
7,438 5,638 8,182 8,000
Net income from continuing operations
16,142 16,887 14,468
13,208 17,327 Net income from discontinued operations (1)
1,245 2,065 1,455
1,316 1,546 Net income before attribution to
noncontrolling interests
17,387 18,952 15,923 14,524 18,873
Less: Net income attributable to noncontrolling interests
989 911 921 994
1,263
Net income attributable to the Company
$ 16,398 $ 18,041 $ 15,002 $
13,530 $ 17,610
Boston Private
Financial Holdings, Inc. Selected Financial Data
(Unaudited) Six Months Ended (In thousands, except
share and per share data)
6/30/2016
6/30/2015 Interest and dividend income: Loans
$ 99,777 $ 94,663 Taxable investment securities
3,101 2,070 Non-taxable investment securities
2,790
2,146 Mortgage-backed securities
6,047 5,389 Federal funds
sold and other
912 516 Total
interest and dividend income
112,627
104,784
Interest expense: Deposits
8,257 7,714
Federal Home Loan Bank borrowings
4,092
3,948 Junior subordinated debentures
1,162 1,923 Repurchase
agreements and other short-term borrowings
68
42 Total interest expense
13,579
13,627 Net interest income
99,048
91,157 Provision/ (credit) for loan losses
(5,668
) (2,500 ) Net interest income after provision/
(credit) for loan losses
104,716 93,657
Fees and other income: Investment management fees
21,285 23,445 Wealth advisory fees
25,263 25,353
Wealth management and trust fees
22,124 27,103 Other banking
fee income
6,215 3,941 Gain on sale of loans, net
406 665 Total core fees and income
75,293 80,507 Gain/ (loss) on
sale of investments, net
246 16 Gain/ (loss) on OREO, net
280 89 Other
(1,002 ) 3,393
Total other income
(476 ) 3,498
Operating expense: Salaries and employee benefits
83,174 81,943 Occupancy and equipment
19,515 18,130
Professional services
6,530 6,235 Marketing and business
development
3,981 3,054 Contract services and data
processing
3,416 2,932 Amortization of intangibles
3,172 3,257 FDIC insurance
2,035 1,974 Restructuring
2,017 220 Other
7,600 8,100
Total operating expense
131,440
125,845 Income before income taxes
48,093 51,817
Income tax expense
15,064 16,572
Net income from continuing operations
33,029 35,245 Net
income from discontinued operations (1)
3,310
3,640 Net income before attribution to noncontrolling
interests
36,339 38,885 Less: Net income attributable to
noncontrolling interests
1,900 2,492
Net income attributable to the Company $
34,439 $ 36,393
Boston Private Financial Holdings, Inc.
Selected Financial Data (Unaudited) (In thousands,
except share and per share data)
Three Months Ended PER
SHARE DATA: 6/30/2016
3/31/2016 12/31/2015
9/30/2015 6/30/2015 Calculation of
Income for EPS: Net income attributable to the Company
$
16,398 $ 18,041 $ 15,002 $ 13,530 $ 17,610
Adjustments to Net Income Attributable to
the Company to arrive at Net Income Attributable to Common
Shareholders, treasury stock method (2)
(970 ) (289 ) (1,182 )
159 (1,026 )
Net Income Attributable to the Common
Shareholders, treasury stock method
$ 15,428 $ 17,752 $ 13,820 $
13,689 $ 16,584
End of Period Common Shares
Outstanding
83,380,426
83,023,755
83,410,961 83,645,364
83,539,785
Weighted Average Shares Outstanding: Weighted average
basic shares outstanding
81,236,809 81,301,499 81,134,931
81,103,938 80,778,562 Weighted average diluted shares outstanding
(3)
83,519,939 83,279,866 83,579,050 83,438,413 83,260,383
Diluted Total Earnings per Share $ 0.18
$ 0.21 $ 0.17 $ 0.16 $ 0.20 (In
thousands, except share and per share data)
Six Months Ended
PER SHARE DATA: June 30,
2016
June 30,
2015
Calculation of Income for EPS: Net income attributable to
the Company
$ 34,439 $ 36,393
Adjustments to Net Income Attributable to
the Company to arrive at Net Income Attributable to Common
Shareholders, treasury stock method (2)
(1,259 ) (1,989 )
Net Income Attributable to the Common
Shareholders, treasury stock method
$ 33,180 $ 34,404
Weighted
Average Shares Outstanding: Weighted average basic shares
outstanding
81,269,154 80,647,191 Weighted average diluted
shares outstanding (3)
83,391,057 83,111,228
Diluted Total Earnings per Share $ 0.40 $ 0.41
Boston Private
Financial Holdings, Inc. Selected Financial Data
(Unaudited) (In thousands, except per share data)
FINANCIAL DATA: 6/30/2016
3/31/2016 12/31/2015
9/30/2015 6/30/2015
Book Value Per Common Share
$ 8.71 $ 8.60 $ 8.38 $ 8.29 $ 8.14 Tangible Book
Value Per Share (4)
$ 6.53 $ 6.39 $ 6.16 $ 6.05 $
5.89 Market Price Per Share
$ 11.78 $ 11.45 $ 11.34 $
11.70 $ 13.41
ASSETS UNDER MANAGEMENT AND ADVISORY:
Wealth Management and Trust
$ 7,313,000 $ 7,137,000
7,976,000 8,060,000 $ 9,028,000 Investment Managers
10,006,000 9,838,000 9,952,000 9,830,000 10,695,000 Wealth
Advisory
9,974,000 9,857,000 9,688,000 9,537,000 9,941,000
Less: Inter-company Relationship
(17,000 )
(21,000 ) (21,000 ) (21,000 ) (22,000 )
Total Assets Under Management and Advisory
$
27,276,000 $ 26,811,000 27,595,000
27,406,000 $ 29,642,000
BPFH
FINANCIAL RATIOS: Total Equity/ Total Assets
10.21
% 10.28 % 9.90 % 10.32 % 10.33 % Tangible Common Equity/
Tangible Assets (4)
7.36 % 7.34 % 6.98 % 7.24 % 7.17
% Tier I Common Equity/ Risk Weighted Assets (4)
9.95
% 9.92 % 9.80 % 9.73 % 9.77 % Allowance for Loan Losses/
Total Loans
1.32 % 1.35 % 1.37 % 1.41 % 1.43 %
Allowance for Loan Losses/ Nonaccrual Loans
395 % 314
% 295 % 258 % 262 % Return on Average Assets - Three Months Ended
(Annualized)
0.88 % 0.99 % 0.81 % 0.74 % 1.02 %
Return on Average Common Equity - Three Months Ended (Annualized)
(5)
8.68 % 9.84 % 8.06 % 7.32 % 9.91 % Return on
Average Tangible Common Equity - Three Months Ended (Annualized)
(5)
12.43 % 14.11 % 11.92 % 10.93 % 14.63 %
Efficiency Ratio - Three Months Ended (6)
70.41 %
70.87 % 71.59 % 66.18 % 66.99 %
DEPOSIT DETAIL:
Demand deposits (noninterest-bearing)
$ 1,636,273 $
1,609,669 $ 1,689,604 $ 1,555,609 $ 1,486,251 NOW
547,777
565,394 588,337 489,104 509,625 Savings
70,553 76,019 72,336
74,516 71,626 Money market
2,771,080 2,959,328 3,105,172
2,938,427 2,772,572 Certificates of deposit
510,409
576,450 584,988 590,203
588,954 Total Deposits
$
5,536,092 $ 5,786,860 $ 6,040,437 $
5,647,859 $ 5,429,028
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: 06/30/16
03/31/16 06/30/15
06/30/16 03/31/16
06/30/15 06/30/16 03/31/16
06/30/15 AVERAGE ASSETS Interest-Earning Assets: Cash
and Investments: Taxable investment securities
$
372,413 $ 392,579 $ 342,259
$ 1,507 $ 1,594 $
1,075
1.62 % 1.63 % 1.26 % Non-taxable investment securities
(8)
261,678 262,227 242,387
2,153 2,138 1,731
3.29
% 3.26 % 2.86 % Mortgage-backed securities
588,419
564,826 538,688
2,982 3,065 2,775
2.03 % 2.17 % 2.06
% Federal funds sold and other
124,790
185,253 90,616
405 507
282
1.29 % 1.08 % 1.23 % Total
Cash and Investments
1,347,300
1,404,885 1,213,950
7,047
7,304 5,863
2.09 % 2.08 % 1.93 %
Loans (9): Commercial and Industrial (8)
1,084,821 1,065,614
988,536
10,813 10,920 10,438
3.94 % 4.05 % 4.18 %
Commercial Real Estate
1,910,968 1,859,557 1,740,606
19,559 19,797 18,323
4.05 % 4.21 % 4.16 %
Construction and Land
150,927 174,867 145,405
1,456
1,648 1,252
3.82 % 3.73 % 3.41 % Residential
2,256,296 2,229,680 2,160,987
17,441 17,302 16,637
3.09 % 3.10 % 3.08 % Home Equity
123,687 119,349
120,303
1,073 1,082 1,058
3.49 % 3.65 % 3.53 % Other
Consumer
177,805 157,508
169,726
1,073 965 980
2.43 % 2.47 % 2.32 % Total Loans
5,704,504 5,606,575 5,325,563
51,415 51,714 48,688
3.58 % 3.66 % 3.63 % Total Earning Assets
7,051,804 7,011,460
6,539,513
58,462 59,018
54,551
3.30 % 3.35 % 3.32 % LESS: Allowance
for Loan Losses
77,345 80,273 77,938 Cash and due From Banks
(Non-Interest Bearing)
40,253 39,943 41,596 Other Assets
427,013 420,909 410,296
TOTAL AVERAGE ASSETS $ 7,441,725 $
7,392,039 $ 6,913,467
AVERAGE LIABILITIES, RNCI, AND
SHAREHOLDERS' EQUITY Interest-Bearing Liabilities:
Interest-Bearing Deposits (9): NOW
$ 554,565 $
542,617 $ 517,281
$ 104 $ 87 $ 77
0.08 % 0.06
% 0.06 % Savings
75,431 75,433 71,842
23 23 10
0.12 % 0.12 % 0.06 % Money Market
2,897,151 3,055,242
2,754,817
2,836 2,902 2,551
0.39 % 0.38 % 0.37 %
Certificates of Deposit
559,271 578,310
597,617
1,112 1,170
1,184
0.80 % 0.81 % 0.79 % Total
Interest-Bearing Deposits (13)
4,086,418 4,251,602 3,941,557
4,075 4,182 3,822
0.40 % 0.40 % 0.39 % Junior
Subordinated Debentures
106,363 106,363 106,363
584
578 967
2.17 % 2.15 % 3.60 % FHLB Borrowings and Other
719,655 524,892 576,403
2,197 1,963 2,046
1.21
% 1.48 % 1.40 % Total Interest-Bearing
Liabilities
4,912,436 4,882,857
4,624,323
6,856 6,723
6,835
0.56 % 0.55 % 0.59 % Noninterest
Bearing Demand Deposits (9) (13)
1,628,057 1,621,666
1,443,228 Payables and Other Liabilities
116,444
110,959 97,641 Total Average
Liabilities
6,656,937 6,615,482 6,165,192 Redeemable
Noncontrolling Interests
19,725 21,157 22,760 Average
Shareholders' Equity
765,063 755,400
725,515
TOTAL AVERAGE LIABILITIES, RNCI, AND
SHAREHOLDERS' EQUITY $ 7,441,725 $
7,392,039 $ 6,913,467 Net Interest Income - on a Fully
Taxable Equivalent Basis (FTE)
$ 51,606 $ 52,295 $
47,716 LESS: FTE Adjustment (8)
2,437
2,416 2,631 Net Interest Income (GAAP Basis)
$
49,169 $ 49,879 $ 45,085 Interest Rate Spread
2.74 % 2.80 % 2.73 % Bank only Net Interest Margin
2.95
% 3.01 % 2.97 % Net Interest Margin
2.91 % 2.96 % 2.90 %
Boston Private
Financial Holdings, Inc. Selected Financial Data
(Unaudited) Average Balance Interest
Income/Expense Average Yield/Rate (In thousands)
Six
Months Ended Six Months Ended Six Months
Ended AVERAGE BALANCE SHEET: 6/30/2016
6/30/2015 6/30/2016
6/30/2015 6/30/2016 6/30/2015
AVERAGE ASSETS Interest-Earning Assets: Cash and
Investments: Taxable investment securities
$ 373,486
$ 331,565
$ 3,101 $ 2,070
1.66 % 1.25 %
Non-taxable investment securities (8)
261,952 236,352
4,291 3,301
3.28 % 2.79 % Mortgage-backed securities
576,623 527,423
6,047 5,389
2.10 % 2.04 %
Federal funds sold and other
163,965
118,749
912 516
0.80 %
0.93 % Total Cash and Investments
1,376,026
1,214,089
14,351 11,276
2.05
% 1.87 % Loans (9): Commercial and Industrial (8)
1,075,217 961,139
21,732 21,590
4.00 % 3.64 %
Commercial Real Estate
1,885,263 1,763,216
39,356
37,461
4.13 % 4.23 % Construction and Land
162,897
138,882
3,104 2,328
3.77 % 3.33 % Residential
2,242,988 2,150,813
34,743 33,292
3.10 % 3.10
% Home Equity
121,518 118,001
2,155 2,071
3.57
% 3.54 % Other Consumer
167,657
166,030
2,039 1,921
2.45 %
2.33 % Total Loans
5,655,540
5,298,081
103,129 98,663
3.62 %
3.71 % Total Earning Assets
7,031,566
6,512,170
117,480 109,939
3.31 % 3.37 % LESS: Allowance for Loan Losses
78,809 77,491 Cash and due From Banks (Non-Interest Bearing)
40,136 39,894 Other Assets
424,402
411,724
TOTAL AVERAGE ASSETS $
7,417,295 $ 6,886,297
AVERAGE LIABILITIES, RNCI,
AND SHAREHOLDERS' EQUITY Interest-Bearing Liabilities:
Interest-Bearing Deposits (9): NOW
$ 548,591 $
522,414
$ 191 $ 154
0.07 % 0.06 % Savings
75,432 71,966
47 37
0.12 % 0.10 % Money Market
2,976,057 2,783,569
5,737 5,146
0.39 % 0.37 %
Certificates of Deposit
568,791 600,992
2,282 2,377
0.81 % 0.80 %
Total Interest-Bearing Deposits (13)
4,168,871 3,978,941
8,257 7,714
0.40 % 0.39 % Junior Subordinated
Debentures
106,363 106,363
1,162 1,923
2.16 %
3.60 % FHLB Borrowings and Other
622,273
523,691
4,160 3,990
1.32
% 1.52 % Total Interest-Bearing Liabilities
4,897,507 4,608,995
13,579
13,627
0.55 % 0.59 % Noninterest
Bearing Demand Deposits (9) (13)
1,624,928 1,434,460
Payables and Other Liabilities
113,747
100,529 Total Average Liabilities
6,636,182 6,143,984
Redeemable Noncontrolling Interests
20,497 22,205 Average
Shareholders' Equity
760,616 720,108
TOTAL AVERAGE LIABILITIES, RNCI, AND SHAREHOLDERS' EQUITY
$ 7,417,295 $ 6,886,297 Net Interest Income -
on a Fully Taxable Equivalent Basis (FTE)
$ 103,901 $
96,312 LESS: FTE Adjustment (8)
4,853
5,155 Net Interest Income (GAAP Basis)
$ 99,048
$ 91,157 Interest Rate Spread
2.76 % 2.78 % Bank only
Net Interest Margin
2.98 % 3.02 % Net Interest Margin
2.93 % 2.95 %
Boston Private Financial Holdings, Inc. Selected
Financial Data (Unaudited) (In thousands)
LOAN DATA
(10): 6/30/2016 3/31/2016
12/31/2015 9/30/2015 6/30/2015
Commercial and Industrial Loans: New England
$
814,839 $ 849,615 $ 894,277 $ 827,301 $ 793,897 San
Francisco Bay Area
116,224 118,385 122,754 125,093 121,477
Southern California
111,854 101,971
94,524 84,428 87,038 Total Commercial and Industrial
Loans
$ 1,042,917 $ 1,069,971 $ 1,111,555 $ 1,036,822
$ 1,002,412 Commercial Real Estate Loans: New England
$
797,450 $ 816,324 $ 799,109 $ 766,253 $ 728,820 San
Francisco Bay Area
633,735 611,461 622,123 625,145 629,258
Southern California
546,127 497,734
492,902 512,250 469,337 Total Commercial Real Estate
Loans
$ 1,977,312 $ 1,925,519 $ 1,914,134 $ 1,903,648
$ 1,827,415 Construction and Land Loans: New England
$
90,408 $ 106,258 $ 106,048 $ 111,280 $ 102,068 San Francisco
Bay Area
36,808 35,281 52,876 35,627 45,221 Southern
California
15,333 25,135 24,510
23,504 13,637 Total Construction and Land Loans
$
142,549 $ 166,674 $ 183,434 $ 170,411 $ 160,926 Residential
Loans: New England
$ 1,385,102 $ 1,361,547 $
1,368,192 $ 1,356,057 $ 1,316,705 San Francisco Bay Area
470,694 463,645 462,327 462,630 466,155 Southern California
424,320 391,683 399,021 393,199
392,648 Total Residential Loans
$ 2,280,116 $
2,216,875 $ 2,229,540 $ 2,211,886 $ 2,175,508 Home Equity Loans:
New England
$ 91,728 $ 84,693 $ 83,712 $ 81,796 $
85,057 San Francisco Bay Area
26,714 26,134 28,966 27,076
30,013 Southern California
7,044 7,980
7,150 5,915 5,395 Total Home Equity Loans
$
125,486 $ 118,807 $ 119,828 $ 114,787 $ 120,465 Other
Consumer Loans: New England
$ 166,998 $ 145,450 $
152,984 $ 161,186 $ 164,522 San Francisco Bay Area
8,299
8,347 4,530 5,782 6,793 Southern California
7,820
6,538 3,207 2,950 5,209 Total Other
Consumer Loans
$ 183,117 $ 160,335 $ 160,721 $
169,918 $ 176,524 Total Loans: New England
$
3,346,525 $ 3,363,887 $ 3,404,322 $ 3,303,873 $ 3,191,069
San Francisco Bay Area
1,292,474 1,263,253 1,293,576
1,281,353 1,298,917 Southern California
1,112,498
1,031,041 1,021,314 1,022,246 973,264
Total Loans
$ 5,751,497 $ 5,658,181 $ 5,719,212 $
5,607,472 $ 5,463,250
Boston Private Financial Holdings, Inc. Selected
Financial Data (Unaudited) (In thousands)
CREDIT
QUALITY (10): 6/30/2016
3/31/2016 12/31/2015
9/30/2015 6/30/2015 Special Mention
Loans: New England
$ 27,903 $ 38,927 $ 40,121 $
46,924 $ 53,626 San Francisco Bay Area
24,381 23,288 15,764
11,087 17,150 Southern California
15,044
24,710 13,326 12,718
5,659 Total Special Mention Loans
$ 67,328 $
86,925 $ 69,211 $ 70,729 $ 76,435 Accruing
Substandard Loans (11): New England
$ 17,447 $ 19,157
$ 22,026 $ 16,996 $ 16,666 San Francisco Bay Area
19,750
20,235 19,990 20,108 20,396 Southern California
27,027 16,299 16,398
22,405 24,554 Total Accruing Substandard Loans
$ 64,224 $ 55,691 $ 58,414 $ 59,509
$ 61,616 Nonaccruing Loans: New England
$
13,028 $ 17,988 $ 19,572 $ 22,815 $ 17,943 San Francisco Bay
Area
4,196 4,369 4,977 5,096 9,163 Southern California
1,964 1,999 2,022
2,816 2,785 Total Nonaccruing Loans
$
19,188 $ 24,356 $ 26,571 $ 30,727 $
29,891 Other Real Estate Owned: New England
$ 2,042 $
98 $ 191 $ 191 $ 344 San Francisco Bay Area
— — 585 585 585
Southern California
— — —
— — Total Other Real Estate Owned
$
2,042 $ 98 $ 776 $ 776 $ 929 Loans
30-89 Days Past Due and Accruing (12): New England
$
5,213 $ 4,723 $ 7,118 $ 6,733 $ 3,873 San Francisco Bay Area
70 986 2,806 14 110 Southern California
2,343
2,598 3,170 227
356 Total Loans 30-89 Days Past Due and Accruing
$
7,626 $ 8,307 $ 13,094 $ 6,974 $ 4,339
Loans (Charged-off)/ Recovered, Net for the Three Months Ended: New
England
$
1,276
$ (2,146 ) $ 120 $ (1,618 ) $ 106 San Francisco Bay Area
537
3,454 703 (57 ) 833 Southern California
48
(248 ) 86 70 49 Total Net Loans
(Charged-off)/ Recovered
$
1,861
$ 1,060 $ 909 $ (1,605 ) $ 988 Loans (Charged-off)/
Recovered, Net for the Six Months Ended: New England
$
(870
) $ 996 San Francisco Bay Area
3,991 3,571 Southern
California
(200 ) 346 Total Net Loans
(Charged-off)/ Recovered
$
2,921
$ 4,913
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)
6/30/2016
3/31/2016 12/31/2015
9/30/2015 6/30/2015 Total
Balance Sheet Assets
$ 7,579,601 $ 7,413,663 $
7,542,508 $ 7,180,528 $ 7,045,939 LESS: Goodwill and Intangible
Assets, net
(181,918 ) (183,504 )
(185,089 ) (186,888 ) (188,543 ) Tangible
Assets (non-GAAP)
$ 7,397,683 $ 7,230,159 $ 7,357,419
$ 6,993,640 $ 6,857,396 Total Shareholders' Equity
$
774,140 $ 762,145 $ 746,613 $ 740,757 $ 728,085 LESS: Series
D Preferred Stock (non-convertible)
(47,753 ) (47,753
) (47,753 ) (47,753 ) (47,753 ) LESS: Goodwill and Intangible
Assets, net
(181,918 ) (183,504 )
(185,089 ) (186,888 ) (188,543 ) Total
adjusting items
(229,671 ) (231,257 )
(232,842 ) (234,641 ) (236,296 ) Tangible
Common Equity (non-GAAP)
$ 544,469 $ 530,888
$ 513,771 $ 506,116 $ 491,789 Total
Equity/Total Assets
10.21 % 10.28 % 9.90 % 10.32 %
10.33 % Tangible Common Equity/Tangible Assets (non-GAAP)
7.36 % 7.34 % 6.98 % 7.24 % 7.17 % Total Risk
Weighted Assets *
$ 5,464,531 $ 5,412,514 $ 5,449,239
$ 5,397,148 $ 5,278,052 Tier I Common Equity *
$
543,802 $ 536,925 $ 534,241 $ 525,004 $ 515,546 Tier I
Common Equity/ Risk Weighted Assets
9.95 % 9.92 %
9.80 % 9.73 % 9.77 % End of Period Shares Outstanding
83,380,426 83,023,755 83,410,961 83,645,364 83,539,785
Book Value Per Common Share
$ 8.71 $ 8.60 $
8.38 $ 8.29 $ 8.14 Tangible Book Value Per Share (non-GAAP)
$ 6.53 $ 6.39 $ 6.16 $ 6.05 $ 5.89 * Risk Weighted
Assets and Tier I Common Equity for June 30, 2016 are presented
based on estimated data. (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)
6/30/2016
3/31/2016 12/31/2015
9/30/2015 6/30/2015
Total average shareholders' equity
$ 765,063 $
755,400 $ 743,150 $ 733,882 $ 725,515 LESS: Average Series D
preferred stock (non-convertible)
(47,753 )
(47,753 ) (47,753 ) (47,753 ) (47,753 )
Average common equity (non-GAAP)
717,310
707,647 695,397 686,129
677,762 LESS: Average goodwill and intangible assets,
net
(182,787 ) (184,415 )
(185,983 ) (187,728 ) (189,420 ) Average Tangible
Common Equity (non-GAAP)
$ 534,523 $ 523,232
$ 509,414 $ 498,401 $ 488,342
Net income attributable to the Company
$ 16,398 $
18,041 $ 15,002 $ 13,530 $ 17,610 LESS: Dividends on Series D
preferred stock
(869 ) (869 )
(869 ) (869 ) (869 ) Common net income (non-GAAP)
15,529 17,172 14,133 12,661 16,741 ADD: Amortization of
intangibles, net of tax (35%)
1,031
1,031 1,169 1,076 1,076
Tangible common net income (non-GAAP)
$ 16,560
$ 18,203 $ 15,302 $ 13,737 $ 17,817
Return on Average Equity - (Annualized)
8.60
% 9.69 % 8.01 % 7.31 % 9.74 % Return on Average Common
Equity - (Annualized) (non-GAAP)
8.68 % 9.84 % 8.06 %
7.32 % 9.91 % Return on Average Tangible Common Equity -
(Annualized) (non-GAAP)
12.43 % 14.11 % 11.92 % 10.93
% 14.63 %
Six months ended (In thousands)
6/30/2016 6/30/2015 Total
average shareholders' equity $ 760,616 $ 720,108 LESS: Average
Series D preferred stock (non-convertible) (47,753 )
(47,753 ) Average common equity (non-GAAP) 712,863
672,355 LESS: Average goodwill and intangible assets,
net (183,601 ) (190,233 ) Average Tangible Common
Equity (non-GAAP) $ 529,262 $ 482,122 Net
income attributable to the Company $ 34,439 $ 36,393 LESS:
Dividends on Series D preferred stock (1,738 ) (1,738
) Common net income (non-GAAP) 32,701 34,655 ADD: Amortization of
intangibles, net of tax (35%) 2,062 2,117
Tangible common net income (non-GAAP) $ 34,763 $
36,772 Return on Average Equity - (Annualized) 9.13 %
10.19 % Return on Average Common Equity - (Annualized) (non-GAAP)
9.25 % 10.39 % Return on Average Tangible Common Equity -
(Annualized) (non-GAAP) 13.25 % 15.38 % (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 (In thousands)
6/30/2016 3/31/2016
12/31/2015 9/30/2015
6/30/2015 Income before income taxes (GAAP)
$
23,768 $ 24,325 $ 20,106 $ 21,390 $ 25,327 ADD BACK:
Provision/ (credit) for loan losses
(2,535 )
(3,133 ) (1,655 ) 2,600 —
Pre-tax, pre-provision earnings (non-GAAP)
$ 21,233 $
21,192 $ 18,451 $ 23,990 $ 25,327 Total operating expense
(GAAP)
$ 64,731 $ 66,709 $ 67,407 $ 61,929 $ 62,418
Less: Amortization of intangibles
1,586 1,586 1,799 1,655
1,655 Less: Restructuring
905 1,112
2,000 1,504 220
Total operating expense (excluding amortization of intangibles and
restructuring) (non-GAAP)
$ 62,240 $ 64,011 $ 63,608
$ 58,770 $ 60,543 Total operating expense (excluding restructuring)
(non-GAAP)
63,826 65,597 65,407 60,425 62,198 Net
interest income
$ 49,169 $ 49,879 $ 48,140 $ 46,473 $
45,085 Total core fees and income
37,565 37,728 37,137
39,443 40,347 Total other income
(770 ) 294 581 3
2,313 FTE income
2,437 2,416
2,997 2,883 2,631 Total
revenue (FTE basis)
$ 88,401 $ 90,317 $ 88,855 $
88,802 $ 90,376 Efficiency Ratio, before deduction of intangible
amortization (GAAP)
75.30 % 75.89 % 78.51 % 72.08 %
71.14 % Efficiency Ratio, FTE Basis excluding restructuring
(non-GAAP)
70.41 % 70.87 % 71.59 % 66.18 % 66.99 %
Six months ended (In thousands)
6/30/2016 6/30/2015 Income
before income taxes (GAAP)
$ 48,093 $ 51,817 ADD
BACK: Provision/ (credit) for loan losses
(5,668
) (2,500 ) Pre-tax, pre-provision earnings (non-GAAP)
$ 42,425 $ 49,317 Total operating expense
(GAAP)
$ 131,440 $ 125,845 Less: Amortization of
intangibles
3,172 3,257 Less: Restructuring
2,017 220 Total operating expense
(excluding amortization of intangibles and restructuring)
(non-GAAP)
$ 126,251 $ 122,368 Total operating
expense (excluding restructuring) (non-GAAP)
129,423 125,625
Net interest income
$ 99,048 $ 91,157 Total
core fees and income
75,293 80,507 Total other income
(476 ) 3,498 FTE income
4,853
5,155 Total revenue (FTE basis)
$
178,718 $ 180,317 Efficiency Ratio, before deduction of
intangible amortization (GAAP)
75.60 % 71.84 %
Efficiency Ratio, FTE Basis excluding restructuring (non-GAAP)
70.64 % 67.86 % (7) 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)
6/30/2016 3/31/2016
12/31/2015 9/30/2015
6/30/2015 Net interest income (GAAP basis)
$
49,169 $ 49,879 $ 48,140 $ 46,473 $ 45,085 ADD: FTE income
2,437 2,416 2,997
2,883 2,631 Net interest income, FTE
basis
51,606 52,295 51,137 49,356 47,716 LESS: Interest
recovered on previously nonaccrual loans
565
1,089 255 298 69
Net interest income, FTE basis, excluding interest recovered
on previously nonaccrual loans (non-GAAP)
51,041
51,206 50,882 49,058
47,647 Net Interest Margin (FTE basis)
2.91 % 2.96 % 2.88 % 2.84 % 2.90 % Net Interest
Margin, FTE basis, excluding interest recovered on previously
nonaccrual loans (non-GAAP)
2.88 % 2.90 % 2.86 % 2.82
% 2.90 % (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) Average Loans
includes Loans Held for Sale and Nonaccrual Loans. Average Deposits
includes Deposits Held for Sale. (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 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 March 31, 2016, December 31, 2015, and June 30, 2015,
the Company had no loans outstanding more than 90 days past due but
still on accrual status. 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. (13) Average Total Deposits is the sum of Average
Total Interest-Bearing Deposits and Average Noninterest Bearing
Demand Deposits.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160720006028/en/
Adam BromleyVice President Corporate Finance and Director of
Investor RelationsBoston Private Financial Holdings, Inc.(617)
912-4386abromley@bostonprivate.com
Boston Private Financial (NASDAQ:BPFH)
Historical Stock Chart
From Mar 2024 to Apr 2024
Boston Private Financial (NASDAQ:BPFH)
Historical Stock Chart
From Apr 2023 to Apr 2024
