Third Quarter Highlights:
- Net Interest Income Growth: Net
Interest Income increased 7% year-over-year and 1% linked quarter
to $49.9 million.
- Deposit and Loan Growth: Average
Total Deposits increased 3% year-over-year to $5.9 billion, and
Average Total Loans increased 4% year-over-year to $5.8
billion.
- Assets Under Management: Total
Assets Under Management/Advisory (“AUM”) was flat year-over-year at
$27.5 billion.
- Provision Credit: The Company
recorded a provision credit of $0.1 million.
Boston Private Financial Holdings, Inc. (NASDAQ: BPFH) (the
“Company” or “BPFH”) today reported third quarter 2016 GAAP Net
Income Attributable to the Company of $19.6 million, compared to
$16.4 million for the second quarter of 2016 and $13.5 million for
the third quarter of 2015. Third quarter 2016 diluted earnings per
share were $0.22, compared to $0.18 in the second quarter of 2016
and $0.16 in the third quarter of 2015.
“We are pleased with the Company’s performance during the third
quarter,” said Clayton G. Deutsch, CEO. “The Company achieved
earnings growth through a combination of increased revenue coupled
with expense discipline, while remaining focused on asset quality
and risk management. Our core Private Banking performance continues
to be strong in 2016. All of our businesses remain committed to
delivering exceptional client experiences, which we believe will
drive attractive long-term performance.”
Core Fees and Income/Assets Under Management
Core Fees and Income increased 1% linked quarter to $37.9
million. Year-over-year, Core Fees and Income are down 4% due
primarily to lower levels of AUM during the previous year offset by
higher Other Banking Fee Income.
AUM increased to $27.5 billion in the third quarter, up 1% from
$27.3 billion in the second quarter of 2016 and flat
year-over-year, reflecting positive market action partly offset by
negative net flows. The Company experienced negative net flows of
$336 million during the third quarter, compared to negative $199
million and negative $751 million in the second quarter of 2016 and
third quarter of 2015, respectively. During the third quarter, net
flows by segment were negative $120 million for Wealth Management
& Trust, negative $111 million for Investment Management, and
negative $105 million for Wealth Advisory.
Net Interest Income
Net Interest Income for the third quarter was $49.9 million, up
1% from $49.2 million for the second quarter of 2016. On a
year-over-year basis, Net Interest Income increased 7% from $46.5
million. The current quarter includes $0.3 million of interest
recovered on previous nonaccrual loans while the second quarter of
2016 and third quarter of 2015 included interest recoveries of $0.6
million and $0.3 million, respectively. Excluding interest
recovered on previous nonaccrual loans, Net Interest Income on an
FTE basis increased 2% linked quarter and 6% year-over-year.
Net Interest Margin was 2.88% for the third quarter, down three
basis points from 2.91% for the second quarter of 2016. Net
Interest Margin was up four basis points from 2.84% for the third
quarter of 2015. Excluding interest recovered on previous
nonaccrual loans, Net Interest Margin was 2.86%, a decrease of 2
basis points linked quarter and an increase of 4 basis points
year-over-year.
Total Operating Expenses
Total Operating Expenses for the third quarter of 2016 were
$61.7 million, down 5% from $64.7 million for the second quarter of
2016. On a year-over-year basis, Total Operating Expenses declined
less than 1% from $61.9 million, primarily due to decreases in
legal and consulting fees, other expenses, and occupancy
expenses.
Provision and Asset Quality
The Company recorded a provision credit of $0.1 million for the
third quarter of 2016, compared to a provision credit of $2.5
million for the second quarter of 2016 and a provision expense of
$2.6 million for the third quarter of 2015. The provision credit in
the third quarter of 2016 was due to net recoveries and a decrease
in loss factors which were partially offset by an increase in
Criticized Loans and loan growth.
Criticized Loans increased 5% linked quarter and decreased 1%
year-over-year to $158.8 million. Nonaccrual Loans (“Nonaccruals”)
decreased 14% to $16.5 million on a linked quarter basis. On a
year-over-year basis, Non-accruals decreased 46% from $30.7
million. As a percentage of Total Loans, Nonaccruals were 28 basis
points at September 30, 2016, down 5 basis points from June 30,
2016, and down 27 basis points from September 30, 2015.
Additional credit metrics are listed below:
(In millions)
September 30, 2016
June 30, 2016 March 31, 2016
December 31, 2015 September 30,
2015 Total Criticized Loans $ 158.8 $ 150.7 $ 166.9 $ 154.1
$ 160.9 Total Loans 30-89 Days Past Due and Accruing (12) $
4.6 $ 7.6 $ 8.3 $ 13.1 $ 7.0
Total Net Loans
(Charged-off)/Recovered
$ 2.1 $ 1.9 $ 1.1 $ 0.9 $ (1.6 )
Allowance for Loan Losses/Total Loans
1.32 % 1.32 % 1.35 % 1.37 % 1.41 %
Capital Ratios
Capital ratios are listed below:
September 30, 2016 June
30, 2016 March 31, 2016
December 31, 2015 September 30,
2015 BPFH Ratios: Total Risk-Based Capital *
14.0 % 14.0 % 14.0 % 13.9 % 13.8 % Tier I Risk-Based Capital * 12.7
% 12.7 % 12.7 % 12.6 % 12.6 % Tier I Leverage Capital * 9.5 % 9.6 %
9.5 % 9.5 % 9.6 % TCE/TA (4) 7.4 % 7.4 % 7.3 % 7.0 % 7.2 %
Tier I Common Equity/Risk Weighted Assets
*
10.0 % 10.0 % 9.9 % 9.8 % 9.7 %
*September 30, 2016 information is
presented based on estimated data.
Dividend PaymentsConcurrent with
the release of third 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 November 4,
2016, and the payment date is November 18, 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 November 15, 2016, and the payment date is
December 15, 2016.
Non-GAAP Financial MeasuresThe
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 CallManagement will hold
a conference call at 8 a.m. Eastern Time on Friday, October 21,
2016, to discuss the financial results, business highlights and
outlook. To access the call:
Dial In #: (888) 317-6003Elite Entry Number: 2067019
Replay Information:Available from October 21, 2016 at 12 noon
until October 28, 2016Dial In #: (877) 344-7529Conference Number:
10094056
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 total assets 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 StatementsCertain
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)
9/30/16
6/30/16
3/31/16
12/31/15
9/30/15
Assets: Cash and cash equivalents
$ 67,631 $
126,167 $ 113,946 $ 238,694 $ 43,640 Investment securities
available for sale
1,249,578 1,191,523 1,151,529 1,084,510
1,023,255 Investment securities held to maturity
98,881
105,297 111,337 116,352 121,679 Stock in Federal Home Loan Banks
36,084 44,374 34,202 35,181 35,518 Loans held for sale
5,316 4,677 5,383 8,072 7,685 Total loans
5,869,498
5,751,497 5,658,181 5,719,212 5,607,472 Less: Allowance for loan
losses
77,669 75,753 76,427
78,500 79,246 Net loans
5,791,829 5,675,744
5,581,754 5,640,712 5,528,226 Other real estate owned (“OREO”)
1,800 2,042 98 776 776 Premises and equipment, net
32,089 31,752 31,575 31,036 30,841 Goodwill
152,082
152,082 152,082 152,082 152,082 Intangible assets, net
28,267 29,836 31,422 33,007 34,806 Fees receivable
11,185 11,129 11,041 11,258 11,308 Accrued interest
receivable
18,062 18,061 17,590 17,950 17,039 Deferred
income taxes, net
39,319 36,942 43,164 51,699 45,438 Other
assets
149,427 149,975 128,540
121,179 128,235 Total assets
$
7,681,550 $ 7,579,601 $ 7,413,663 $ 7,542,508 $
7,180,528
Liabilities: Deposits
$ 5,812,243 $
5,536,092 $ 5,786,860 $ 6,040,437 $ 5,647,859 Deposits Held For
Sale
105,788 110,558 — — — Securities sold under agreements
to repurchase
77,466 43,304 63,182 58,215 35,698 Federal
funds purchased
125,000 180,000 40,000 — 60,000 Federal Home
Loan Bank borrowings
522,681 678,012 523,952 461,324 461,899
Junior subordinated debentures
106,363 106,363 106,363
106,363 106,363 Other liabilities
134,322
135,289 114,223 111,468 109,695 Total
liabilities
6,883,863 6,789,618
6,634,580 6,777,807 6,421,514
Redeemable
Noncontrolling Interests 16,199 15,843 16,938 18,088
18,257
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
83,195 83,380 83,024 83,411 83,645
Additional paid-in capital
597,209 597,989 599,825 600,670
598,968 Retained earnings
39,415 28,985 21,740 12,886 5,960
Accumulated other comprehensive income/ (loss)
10,134
12,654 6,687 (1,500 ) 1,287 Total
Company’s shareholders’ equity
777,706 770,761
759,029 743,220 737,613 Noncontrolling
interests
3,782 3,379 3,116
3,393 3,144 Total shareholders’ equity
781,488 774,140 762,145 746,613
740,757 Total liabilities, redeemable noncontrolling
interests and shareholders’ equity
$ 7,681,550 $
7,579,601 $ 7,413,663 $ 7,542,508 $ 7,180,528
Boston Private Financial
Holdings, Inc.Selected Financial Data(Unaudited)
Three Months Ended (In thousands, except share and per share
data)
9/30/16
6/30/16
3/31/16
12/31/15
9/30/15
Interest and dividend income: Loans
$ 50,074 $
49,731 $ 50,046 $ 49,463 $ 48,058 Taxable investment securities
1,537 1,507 1,594 1,239 1,094 Non-taxable investment
securities
1,444 1,400 1,390 1,348 1,264 Mortgage-backed
securities
3,079 2,982 3,065 2,863 2,681 Federal funds sold
and other
469 405 507
449 425 Total interest and
dividend income
56,603 56,025
56,602 55,362 53,522
Interest expense: Deposits
4,163 4,075 4,182 4,281
4,007 Federal Home Loan Bank borrowings
1,929 2,139 1,953
1,960 2,051 Junior subordinated debentures
591 584 578 973
979 Repurchase agreements and other short-term borrowings
49 58 10 8
12 Total interest expense
6,732
6,856 6,723 7,222
7,049 Net interest income
49,871 49,169 49,879 48,140
46,473 Provision/ (credit) for loan losses
(138
) (2,535 ) (3,133 ) (1,655 )
2,600 Net interest income after provision/ (credit) for loan
losses
50,009 51,704
53,012 49,795 43,873
Fees and
other income: Investment management fees
10,717 10,627
10,658 10,889 11,360 Wealth advisory fees
12,750 12,551
12,712 12,569 12,515 Wealth management and trust fees
10,826
11,208 10,916 11,782 12,424 Other banking fee income
3,447
2,982 3,233 1,719 2,780 Gain on sale of loans, net
156 197 209 178
364
Total core fees and income
37,896 37,565 37,728
37,137 39,443 Gain/ (loss) on
sale of investments, net
273 245 1 215 5 Gain/ (loss) on
OREO, net
137 — 280 — 35 Other
1,706
(1,015 ) 13 366 (37 )
Total other income
2,116 (770 ) 294
581 3
Operating expense: Salaries and
employee benefits
40,924 40,614 42,560 39,520 37,938
Occupancy and equipment
9,521 9,928 9,587 9,989 9,064
Professional services
2,290 3,015 3,515 3,778 2,848
Marketing and business development
1,623 1,811 2,170 4,001
2,008 Contract services and data processing
1,865 1,737
1,679 1,505 1,600 Amortization of intangibles
1,568 1,586
1,586 1,799 1,655 FDIC insurance
722 1,015 1,020 1,089 916
Restructuring
— 905 1,112 2,000 1,504 Other
3,157 4,120 3,480
3,726 4,396 Total operating expense
61,670 64,731 66,709
67,407 61,929 Income before income
taxes
28,351 23,768 24,325 20,106 21,390 Income tax expense
8,652 7,626 7,438
5,638 8,182 Net income from continuing
operations
19,699 16,142 16,887 14,468 13,208 Net income
from discontinued operations (1)
1,047
1,245 2,065 1,455 1,316
Net income before attribution to noncontrolling interests
20,746 17,387 18,952 15,923 14,524 Less: Net income
attributable to noncontrolling interests
1,110
989 911 921 994
Net income attributable to the Company $
19,636 $ 16,398 $ 18,041 $ 15,002
$ 13,530
Boston
Private Financial Holdings, Inc.Selected Financial
Data(Unaudited) Nine Months Ended (In thousands,
except share and per share data)
9/30/16
9/30/15
Interest and dividend income: Loans
$ 149,851
$ 142,721 Taxable investment securities
4,638 3,164
Non-taxable investment securities
4,234 3,410
Mortgage-backed securities
9,126 8,070 Federal funds sold
and other
1,381 941 Total interest and
dividend income
169,230 158,306
Interest expense: Deposits
12,420 11,721 Federal Home
Loan Bank borrowings
6,021 5,999 Junior subordinated
debentures
1,753 2,902 Repurchase agreements and other
short-term borrowings
117 54 Total
interest expense
20,311 20,676 Net
interest income
148,919 137,630 Provision/ (credit) for loan
losses
(5,806 ) 100 Net interest income
after provision/ (credit) for loan losses
154,725
137,530
Fees and other income: Investment
management fees
32,002 34,805 Wealth advisory fees
38,013 37,868 Wealth management and trust fees
32,950
39,527 Other banking fee income
9,662 6,721 Gain on sale of
loans, net
562 1,029 Total core fees
and income
113,189 119,950 Gain/ (loss)
on sale of investments, net
519 21 Gain/ (loss) on OREO, net
417 124 Other
704 3,356 Total
other income
1,640 3,501
Operating
expense: Salaries and employee benefits
124,098 119,881
Occupancy and equipment
29,036 27,194 Professional services
8,820 9,083 Marketing and business development
5,604
5,062 Contract services and data processing
5,281 4,532
Amortization of intangibles
4,740 4,912 FDIC insurance
2,757 2,890 Restructuring
2,017 1,724 Other
10,757 12,496 Total operating expense
193,110 187,774 Income before income taxes
76,444 73,207 Income tax expense
23,716
24,754 Net income from continuing operations
52,728
48,453 Net income from discontinued operations (1)
4,357 4,956 Net income before attribution to
noncontrolling interests
57,085 53,409 Less: Net income
attributable to noncontrolling interests
3,010
3,486
Net income attributable to the Company $
54,075 $ 49,923
Boston Private Financial Holdings,
Inc.Selected Financial Data(Unaudited) (In
thousands, except share and per share data)
Three Months
Ended PER SHARE DATA:
9/30/16
6/30/16
3/31/16
12/31/15
9/30/15
Calculation of Income for EPS: Net income attributable to
the Company
$ 19,636 $ 16,398 $ 18,041 $ 15,002 $
13,530 Adjustments to Net Income Attributable to the Company to
arrive at Net Income Attributable to Common Shareholders, treasury
stock method(2)
(1,006 ) (970 )
(289 ) (1,182 ) 159
Net Income Attributable to the
Common Shareholders, treasury stock method $
18,630 $ 15,428 $ 17,752 $ 13,820
$ 13,689
End of Period Common Shares
Outstanding
83,194,714
83,380,426
83,023,755 83,410,961
83,645,364
Weighted Average Shares Outstanding: Weighted average
basic shares outstanding
81,301,499 81,236,809 81,301,499
81,134,931 81,103,938 Weighted average diluted shares outstanding
(3)
83,562,283 83,519,939 83,279,866 83,579,050 83,438,413
Diluted Total Earnings per Share $ 0.22
$ 0.18 $ 0.21 $ 0.17 $ 0.16 (In
thousands, except share and per share data)
Nine Months
Ended PER SHARE DATA:
9/30/16
9/30/15
Calculation of Income for EPS: Net income attributable to
the Company
$ 54,075 $ 49,923 Adjustments to Net
Income Attributable to the Company to arrive at Net Income
Attributable to Common Shareholders, treasury stock method (2)
(2,265 ) (1,829 )
Net Income
Attributable to the Common Shareholders, treasury stock method
$ 51,810 $ 48,094
Weighted
Average Shares Outstanding: Weighted average basic shares
outstanding
81,280,014 80,801,113 Weighted average diluted
shares outstanding (3)
83,430,480 83,229,029
Diluted Total Earnings per Share $ 0.62 $ 0.58
Boston Private
Financial Holdings, Inc.Selected Financial
Data(Unaudited) (In thousands, except per share data)
FINANCIAL DATA:
9/30/16
6/30/16
3/31/16
12/31/15
9/30/15
Book Value Per Common Share
$ 8.82 $ 8.71 $ 8.60 $
8.38 $ 8.29 Tangible Book Value Per Share (4)
$ 6.65
$ 6.53 $ 6.39 $ 6.16 $ 6.05 Market Price Per Share
$
12.83 $ 11.78 $ 11.45 $ 11.34 $ 11.70
ASSETS UNDER
MANAGEMENT AND ADVISORY: Wealth Management and Trust
$
7,334,000 $ 7,313,000 7,137,000 7,976,000 $ 8,060,000
Investment Managers
10,176,000 10,006,000 9,838,000
9,952,000 9,830,000 Wealth Advisory
10,028,000 9,974,000
9,857,000 9,688,000 9,537,000 Less: Inter-company Relationship
(11,000 ) (17,000 ) (21,000 )
(21,000 ) (21,000 ) Total Assets Under Management and
Advisory
$ 27,527,000 $ 27,276,000
26,811,000 27,595,000 $ 27,406,000
BPFH FINANCIAL RATIOS: Total Equity/ Total
Assets
10.17 % 10.21 % 10.28 % 9.90 % 10.32 %
Tangible Common Equity/ Tangible Assets (4)
7.38 %
7.36 % 7.34 % 6.98 % 7.24 % Tier I Common Equity/ Risk Weighted
Assets (4)
10.02 % 9.95 % 9.92 % 9.80 % 9.73 %
Allowance for Loan Losses/ Total Loans
1.32 % 1.32 %
1.35 % 1.37 % 1.41 % Allowance for Loan Losses/ Nonaccrual Loans
471 % 395 % 314 % 295 % 258 % Return on Average
Assets - Three Months Ended (Annualized)
1.03 % 0.88
% 0.99 % 0.81 % 0.74 % Return on Average Common Equity - Three
Months Ended (Annualized) (5)
10.20 % 8.68 % 9.84 %
8.06 % 7.32 % Return on Average Tangible Common Equity - Three
Months Ended (Annualized) (5)
14.30 % 12.43 % 14.11 %
11.92 % 10.93 % Efficiency Ratio - Three Months Ended (6)
65.04 % 70.41 % 70.87 % 71.59 % 66.18 %
DEPOSIT DETAIL: Demand deposits (noninterest-bearing)
$ 1,770,631 $ 1,636,273 $ 1,609,669 $ 1,689,604 $
1,555,609 NOW
556,096 547,777 565,394 588,337 489,104
Savings
74,866 70,553 76,019 72,336 74,516 Money market
2,879,952 2,771,080 2,959,328 3,105,172 2,938,427
Certificates of deposit
530,698 510,409
576,450 584,988 590,203
Total Deposits
$ 5,812,243 $ 5,536,092
$ 5,786,860 $ 6,040,437 $ 5,647,859
Boston Private Financial Holdings,
Inc.Selected Financial Data(Unaudited) (In
thousands)
Average BalanceThree Months Ended
Interest Income/ExpenseThree Months Ended Average
Yield/RateThree Months Ended AVERAGE BALANCE
SHEET:
9/30/16
6/30/16
9/30/15
9/30/16
6/30/16
9/30/15
9/30/16
6/30/16
9/30/15
AVERAGE ASSETS Interest-Earning Assets: Cash and
Investments: Taxable investment securities
$ 372,852
$ 372,413 $ 340,170
$ 1,537 $ 1,507 $ 1,094
1.65 % 1.62 % 1.29 % Non-taxable investment
securities (8)
271,864 261,678 249,854
2,221 2,153
1,945
3.27 % 3.29 % 3.12 % Mortgage-backed securities
629,748 588,419 526,408
3,079 2,982 2,681
1.96
% 2.03 % 2.04 % Federal funds sold and other
152,892 124,790 213,372
469 405 425
1.20 %
1.29 % 0.78 % Total Cash and Investments
1,427,356 1,347,300 1,329,804
7,306 7,047 6,145
2.05 % 2.09 % 1.85 % Loans (9):
Commercial and Industrial (8)
1,065,787 1,084,821 1,023,717
10,626 10,813 10,424
3.90 % 3.94 % 3.98 %
Commercial Real Estate
1,976,327 1,910,968 1,854,337
19,860 19,559 19,328
3.93 % 4.05 % 4.08 %
Construction and Land
117,183 150,927 165,685
1,263
1,456 1,443
4.22 % 3.82 % 3.41 % Residential
2,300,392 2,256,296 2,208,004
17,812 17,441 17,083
3.10 % 3.09 % 3.09 % Home Equity
122,505
123,687 116,201
1,105 1,073 999
3.59 % 3.49 %
3.41 % Other Consumer
182,315 177,805
170,901
1,154 1,073
983
2.52 % 2.43 % 2.28 %
Total Loans
5,764,509 5,704,504
5,538,845
51,820 51,415
50,260
3.55 % 3.58 % 3.58 %
Total Earning Assets
7,191,865
7,051,804 6,868,649
59,126
58,462 56,405
3.25 % 3.30
% 3.24 % LESS: Allowance for Loan Losses
76,424
77,345 78,263 Cash and due From Banks (Non-Interest Bearing)
39,301 40,253 38,631 Other Assets
445,517
427,013 404,945
TOTAL AVERAGE ASSETS $
7,600,259 $ 7,441,725 $ 7,233,962
AVERAGE LIABILITIES,
RNCI, AND SHAREHOLDERS' EQUITY Interest-Bearing Liabilities:
Interest-Bearing Deposits (9): NOW
$ 551,085 $
554,565 $ 509,265
$ 120 $ 104 $ 81
0.09
% 0.08 % 0.06 % Savings
76,999 75,431 71,776
25 23 22
0.13 % 0.12 % 0.12 % Money Market
2,922,687 2,897,151 2,944,893
2,877 2,836 2,731
0.39 % 0.39 % 0.37 % Certificates of Deposit
560,546 559,271 593,466
1,141 1,112 1,173
0.81
% 0.80 % 0.78 % Total Interest-Bearing
Deposits (13)
4,111,317 4,086,418 4,119,400
4,163
4,075 4,007
0.40 % 0.40 % 0.39 % Junior Subordinated
Debentures
106,363 106,363 106,363
591 584 979
2.17 % 2.17 % 3.60 % FHLB Borrowings and Other
624,528 719,655 526,697
1,978 2,197 2,063
1.24
% 1.21 % 1.53 % Total Interest-Bearing
Liabilities
4,842,208 4,912,436
4,752,460
6,732 6,856
7,049
0.55 % 0.56 % 0.59 %
Noninterest Bearing Demand Deposits (9) (13)
1,824,548
1,628,057 1,623,524 Payables and Other Liabilities
135,901 116,444 102,076 Total
Average Liabilities
6,802,657 6,656,937 6,478,060 Redeemable
Noncontrolling Interests
19,504 19,725 22,020 Average
Shareholders' Equity
778,098 765,063
733,882
TOTAL AVERAGE LIABILITIES, RNCI, AND
SHAREHOLDERS' EQUITY $ 7,600,259 $
7,441,725 $ 7,233,962 Net Interest Income - on a Fully
Taxable Equivalent Basis (FTE)
$ 52,394 $ 51,606 $
49,356 LESS: FTE Adjustment (8)
2,523
2,437 2,883 Net Interest Income (GAAP Basis)
$
49,871 $ 49,169 $ 46,473 Interest Rate Spread
2.70 % 2.74 % 2.65 % Bank only Net Interest Margin
2.92 % 2.95 % 2.91 % Net Interest Margin
2.88
% 2.91 % 2.84 %
Boston Private Financial Holdings,
Inc.Selected Financial Data(Unaudited) (In
thousands)
Average BalanceNine Months
Ended
Interest Income/ExpenseNine
Months Ended
Average Yield/RateNine Months Ended AVERAGE
BALANCE SHEET:
9/30/16
9/30/15
9/30/16
9/30/15
9/30/16
9/30/15
AVERAGE ASSETS Interest-Earning Assets: Cash and
Investments: Taxable investment securities
$ 373,273
$ 334,473
$ 4,638 $ 3,164
1.66 % 1.27 %
Non-taxable investment securities (8)
265,280 240,902
6,512 5,246
3.27 % 2.90 % Mortgage-backed
securities
594,461 527,081
9,126 8,070
2.05
% 2.04 % Federal funds sold and other
160,114
150,611
1,381 941
1.14 %
0.90 % Total Cash and Investments
1,393,128
1,253,067
21,657 17,421
2.07 %
1.86 % Loans (9): Commercial and Industrial (8)
1,072,051
982,228
32,358 32,014
3.97 % 4.30 % Commercial
Real Estate
1,915,839 1,793,923
59,216 56,789
4.06 % 4.17 % Construction and Land
147,548
147,914
4,367 3,772
3.89 % 3.36 % Residential
2,262,262 2,170,086
52,555 50,375
3.10
% 3.10 % Home Equity
121,849 117,394
3,260
3,070
3.57 % 3.50 % Other Consumer
172,578 167,672
3,193 2,903
2.47 % 2.32 % Total Loans
5,692,127
5,379,217
154,949 148,923
3.60
% 3.67 % Total Earning Assets
7,085,255
6,632,284
176,606 166,344
3.30 %
3.33 % LESS: Allowance for Loan Losses
78,008 77,751 Cash
and due From Banks (Non-Interest Bearing)
39,869 39,547
Other Assets
432,005 409,265
TOTAL AVERAGE
ASSETS $ 7,479,121 $ 7,003,345
AVERAGE
LIABILITIES, RNCI, AND SHAREHOLDERS' EQUITY Interest-Bearing
Liabilities: Interest-Bearing Deposits (9): NOW
$
549,429 $ 517,983
$ 311 $ 236
0.08
% 0.06 % Savings
75,958 71,902
71 58
0.13 % 0.11 % Money Market
2,958,051 2,837,614
8,615 7,877
0.39 % 0.37 % Certificates of
Deposit
566,022 598,456
3,423
3,550
0.81 % 0.79 % Total Interest-Bearing
Deposits (13)
4,149,460 4,025,955
12,420 11,721
0.40 % 0.39 % Junior Subordinated Debentures
106,363 106,363
1,753 2,902
2.17 % 3.60
% FHLB Borrowings and Other
623,030 524,704
6,138 6,053
1.29 % 1.52 % Total
Interest-Bearing Liabilities
4,878,853
4,657,022
20,311 20,676
0.55 %
0.59 % Noninterest Bearing Demand Deposits (9) (13)
1,691,872 1,498,105 Payables and Other Liabilities
121,601 101,222 Total Average Liabilities
6,692,326 6,256,349 Redeemable Noncontrolling Interests
20,225 22,157 Average Shareholders' Equity
766,570 724,839
TOTAL AVERAGE LIABILITIES, RNCI,
AND SHAREHOLDERS' EQUITY $ 7,479,121 $ 7,003,345
Net Interest Income - on a Fully Taxable Equivalent Basis (FTE)
$ 156,295 $ 145,668 LESS: FTE Adjustment (8)
7,376 8,038 Net Interest Income (GAAP Basis)
$
148,919 $ 137,630 Interest Rate Spread
2.75 %
2.74 % Bank only Net Interest Margin
2.96 % 2.98 %
Net Interest Margin
2.92 % 2.91 %
Boston Private Financial
Holdings, Inc.Selected Financial Data(Unaudited)
(In thousands)
LOAN DATA (10):
9/30/16
6/30/16
3/31/16
12/31/15
9/30/15
Commercial and Industrial Loans: New England
$
856,372 $ 814,839 $ 849,615 $ 894,277 $ 827,301 San
Francisco Bay Area
129,302 116,224 118,385 122,754 125,093
Southern California
113,496 111,854
101,971 94,524 84,428 Total Commercial and Industrial
Loans
$ 1,099,170 $ 1,042,917 $ 1,069,971 $ 1,111,555
$ 1,036,822 Commercial Real Estate Loans: New England
$
856,005 $ 797,450 $ 816,324 $ 799,109 $ 766,253 San
Francisco Bay Area
611,224 633,735 611,461 622,123 625,145
Southern California
587,341 546,127
497,734 492,902 512,250 Total Commercial Real Estate
Loans
$ 2,054,570 $ 1,977,312 $ 1,925,519 $ 1,914,134
$ 1,903,648 Construction and Land Loans: New England
$
56,268 $ 90,408 $ 106,258 $ 106,048 $ 111,280 San Francisco
Bay Area
26,400 36,808 35,281 52,876 35,627 Southern
California
16,028 15,333 25,135
24,510 23,504 Total Construction and Land Loans
$
98,696 $ 142,549 $ 166,674 $ 183,434 $ 170,411 Residential
Loans: New England
$ 1,409,385 $ 1,385,102 $
1,361,547 $ 1,368,192 $ 1,356,057 San Francisco Bay Area
476,986 470,694 463,645 462,327 462,630 Southern California
429,719 424,320 391,683 399,021
393,199 Total Residential Loans
$ 2,316,090 $
2,280,116 $ 2,216,875 $ 2,229,540 $ 2,211,886 Home Equity Loans:
New England
$ 90,592 $ 91,728 $ 84,693 $ 83,712 $
81,796 San Francisco Bay Area
23,826 26,714 26,134 28,966
27,076 Southern California
6,851 7,044
7,980 7,150 5,915 Total Home Equity Loans
$
121,269 $ 125,486 $ 118,807 $ 119,828 $ 114,787 Other
Consumer Loans: New England
$ 167,140 $ 166,998 $
145,450 $ 152,984 $ 161,186 San Francisco Bay Area
6,764
8,299 8,347 4,530 5,782 Southern California
5,799
7,820 6,538 3,207 2,950 Total Other
Consumer Loans
$ 179,703 $ 183,117 $ 160,335 $
160,721 $ 169,918 Total Loans: New England
$
3,435,762 $ 3,346,525 $ 3,363,887 $ 3,404,322 $ 3,303,873
San Francisco Bay Area
1,274,502 1,292,474 1,263,253
1,293,576 1,281,353 Southern California
1,159,234
1,112,498 1,031,041 1,021,314 1,022,246
Total Loans
$ 5,869,498 $ 5,751,497 $ 5,658,181 $
5,719,212 $ 5,607,472
Boston Private Financial Holdings, Inc.Selected
Financial Data(Unaudited) (In thousands)
CREDIT
QUALITY (10):
9/30/16
6/30/16
3/31/16
12/31/15
9/30/15
Special Mention Loans: New England
$ 25,248 $ 27,903
$ 38,927 $ 40,121 $ 46,924 San Francisco Bay Area
22,786
24,381 23,288 15,764 11,087 Southern California
6,278
15,044 24,710 13,326
12,718 Total Special Mention Loans
$ 54,312
$ 67,328 $ 86,925 $ 69,211 $ 70,729 Accruing
Substandard Loans (11): New England
$ 19,748 $ 17,447
$ 19,157 $ 22,026 $ 16,996 San Francisco Bay Area
19,157
19,750 20,235 19,990 20,108 Southern California
49,148 27,027 16,299
16,398 22,405 Total Accruing Substandard Loans
$ 88,053 $ 64,224 $ 55,691 $ 58,414 $
59,509 Nonaccruing Loans: New England
$ 11,020
$ 13,028 $ 17,988 $ 19,572 $ 22,815 San Francisco Bay Area
3,543 4,196 4,369 4,977 5,096 Southern California
1,928 1,964 1,999 2,022
2,816 Total Nonaccruing Loans
$ 16,491
$ 19,188 $ 24,356 $ 26,571 $ 30,727 Other Real
Estate Owned: New England
$ 1,800 $ 2,042 $ 98 $ 191
$ 191 San Francisco Bay Area
— — — 585 585 Southern
California
— — — —
— Total Other Real Estate Owned
$ 1,800
$ 2,042 $ 98 $ 776 $ 776 Loans 30-89 Days Past
Due and Accruing (12): New England
$ 2,735 $ 5,213 $
4,723 $ 7,118 $ 6,733 San Francisco Bay Area
1,018 70 986
2,806 14 Southern California
836 2,343
2,598 3,170 227 Total Loans
30-89 Days Past Due and Accruing
$ 4,589 $
7,626 $ 8,307 $ 13,094 $ 6,974 Loans (Charged-off)/
Recovered, Net for the Three Months Ended: New England
$
1,704 $ 1,276 $ (2,146 ) $ 120 $ (1,618 ) San Francisco Bay
Area
318 537 3,454 703 (57 ) Southern California
32 48 (248 ) 86 70
Total Net Loans (Charged-off)/ Recovered
$ 2,054
$ 1,861 $ 1,060 $ 909 $ (1,605 ) Loans (Charged-off)/
Recovered, Net for the Nine Months Ended: New England
$
834 $ (622 ) San Francisco Bay Area
4,309 3,514
Southern California
(168 ) 416
Total Net Loans (Charged-off)/ Recovered
$ 4,975
$ 3,308
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)
9/30/16
6/30/16
3/31/16
12/31/15
9/30/15
Total Balance Sheet Assets
$ 7,681,550 $ 7,579,601 $
7,413,663 $ 7,542,508 $ 7,180,528 LESS: Goodwill and Intangible
Assets, net
(180,349 ) (181,918 )
(183,504 ) (185,089 ) (186,888 ) Tangible
Assets (non-GAAP)
$ 7,501,201 $ 7,397,683 $ 7,230,159
$ 7,357,419 $ 6,993,640 Total Shareholders' Equity
$
781,488 $ 774,140 $ 762,145 $ 746,613 $ 740,757 LESS: Series
D Preferred Stock (non-convertible)
(47,753 ) (47,753
) (47,753 ) (47,753 ) (47,753 ) LESS: Goodwill and Intangible
Assets, net
(180,349 ) (181,918 )
(183,504 ) (185,089 ) (186,888 ) Total
adjusting items
(228,102 ) (229,671 )
(231,257 ) (232,842 ) (234,641 ) Tangible
Common Equity (non-GAAP)
$ 553,386 $ 544,469
$ 530,888 $ 513,771 $ 506,116 Total
Equity/Total Assets
10.17 % 10.21 % 10.28 % 9.90 %
10.32 % Tangible Common Equity/Tangible Assets (non-GAAP)
7.38 % 7.36 % 7.34 % 6.98 % 7.24 % Total Risk
Weighted Assets *
$ 5,535,061 $ 5,464,529 $ 5,412,514
$ 5,449,239 $ 5,397,148 Tier I Common Equity *
$
554,369 $ 543,801 $ 536,925 $ 534,241 $ 525,004 Tier I
Common Equity/ Risk Weighted Assets
10.02 % 9.95 %
9.92 % 9.80 % 9.73 % End of Period Shares Outstanding
83,194,714 83,380,426 83,023,755 83,410,961 83,645,364
Book Value Per Common Share
$ 8.82 $ 8.71 $
8.60 $ 8.38 $ 8.29 Tangible Book Value Per Share (non-GAAP)
$ 6.65 $ 6.53 $ 6.39 $ 6.16 $ 6.05 * Risk Weighted
Assets and Tier I Common Equity for September 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)
9/30/16
6/30/16
3/31/16
12/31/15
9/30/15
Total average shareholders' equity
$ 778,098 $
765,063 $ 755,400 $ 743,150 $ 733,882 LESS: Average Series D
preferred stock (non-convertible)
(47,753 )
(47,753 ) (47,753 ) (47,753 ) (47,753 )
Average common equity (non-GAAP)
730,345
717,310 707,647 695,397
686,129 LESS: Average goodwill and intangible assets,
net
(181,191 ) (182,787 )
(184,415 ) (185,983 ) (187,728 ) Average Tangible
Common Equity (non-GAAP)
$ 549,154 $ 534,523
$ 523,232 $ 509,414 $ 498,401
Net income attributable to the Company
$ 19,636 $
16,398 $ 18,041 $ 15,002 $ 13,530 LESS: Dividends on Series D
preferred stock
(868 ) (869 )
(869 ) (869 ) (869 ) Common net income (non-GAAP)
18,768 15,529 17,172 14,133 12,661 ADD: Amortization of
intangibles, net of tax (35%)
1,020
1,031 1,031 1,169 1,076
Tangible common net income (non-GAAP)
$ 19,788
$ 16,560 $ 18,203 $ 15,302 $ 13,737
Return on Average Equity - (Annualized)
10.01
% 8.60 % 9.69 % 8.01 % 7.31 % Return on Average Common
Equity - (Annualized) (non-GAAP)
10.20 % 8.68 % 9.84
% 8.06 % 7.32 % Return on Average Tangible Common Equity -
(Annualized) (non-GAAP)
14.30 % 12.43 % 14.11 % 11.92
% 10.93 %
Nine months ended (In thousands)
9/30/16
9/30/15
Total average shareholders' equity $ 766,570 $ 724,839 LESS:
Average Series D preferred stock (non-convertible) (47,753 )
(47,753 ) Average common equity (non-GAAP) 718,817
677,086 LESS: Average goodwill and intangible
assets, net (182,794 ) (189,391 ) Average Tangible
Common Equity (non-GAAP) $ 536,023 $ 487,695
Net income attributable to the Company $ 54,075 $ 49,923 LESS:
Dividends on Series D preferred stock (2,606 ) (2,606
) Common net income (non-GAAP) 51,469 47,317 ADD: Amortization of
intangibles, net of tax (35%) 3,081 3,193
Tangible common net income (non-GAAP) $ 54,550 $
50,510 Return on Average Equity - (Annualized) 9.43 %
9.21 % Return on Average Common Equity - (Annualized) (non-GAAP)
9.57 % 9.34 % Return on Average Tangible Common Equity -
(Annualized) (non-GAAP) 13.61 % 13.85 % (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)
9/30/16
6/30/16
3/31/16
12/31/15
9/30/15
Income before income taxes (GAAP)
$ 28,351 $ 23,768 $
24,325 $ 20,106 $ 21,390 ADD BACK: Provision/ (credit) for loan
losses
(138 ) (2,535 ) (3,133 )
(1,655 ) 2,600 Pre-tax, pre-provision earnings
(non-GAAP)
$ 28,213 $ 21,233 $ 21,192 $ 18,451 $
23,990 Total operating expense (GAAP)
$ 61,670
$ 64,731 $ 66,709 $ 67,407 $ 61,929 Less: Amortization of
intangibles
1,568 1,586 1,586 1,799 1,655 Less:
Restructuring
— 905 1,112
2,000 1,504 Total operating
expense (excluding amortization of intangibles and restructuring)
(non-GAAP)
$ 60,102 $ 62,240 $ 64,011 $ 63,608 $
58,770 Total operating expense (excluding restructuring) (non-GAAP)
61,670 63,826 65,597 65,407 60,425 Net interest
income
$ 49,871 $ 49,169 $ 49,879 $ 48,140 $ 46,473
Total core fees and income
37,896 37,565 37,728 37,137
39,443 Total other income
2,116 (770 ) 294 581 3 FTE income
2,523 2,437 2,416
2,997 2,883 Total revenue (FTE basis)
$ 92,406 $ 88,401 $ 90,317 $ 88,855 $ 88,802
Efficiency Ratio, before deduction of intangible amortization
(GAAP)
68.61 % 75.30 % 75.89 % 78.51 % 72.08 %
Efficiency Ratio, FTE Basis excluding restructuring (non-GAAP)
65.04 % 70.41 % 70.87 % 71.59 % 66.18 %
Nine months ended (In thousands)
9/30/16
9/30/15
Income before income taxes (GAAP)
$ 76,444 $ 73,207
ADD BACK: Provision/ (credit) for loan losses
(5,806
) 100 Pre-tax, pre-provision earnings
(non-GAAP)
$ 70,638 $ 73,307 Total operating
expense (GAAP)
$ 193,110 $ 187,774 Less: Amortization
of intangibles
4,740 4,912 Less: Restructuring
2,017 1,724 Total operating expense
(excluding amortization of intangibles and restructuring)
(non-GAAP)
$ 186,353 $ 181,138 Total operating
expense (excluding restructuring) (non-GAAP)
191,093 186,050
Net interest income
$ 148,919 $ 137,630 Total
core fees and income
113,189 119,950 Total other income
1,640 3,501 FTE income
7,376
8,038 Total revenue (FTE basis)
$ 271,124 $
269,119 Efficiency Ratio, before deduction of intangible
amortization (GAAP)
73.22 % 71.92 % Efficiency Ratio,
FTE Basis excluding restructuring (non-GAAP)
68.73 %
67.31 % (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)
9/30/16
6/30/16
3/31/16
12/31/15
9/30/15
Net interest income (GAAP basis)
$ 49,871 $ 49,169 $
49,879 $ 48,140 $ 46,473 ADD: FTE income
2,523
2,437 2,416 2,997
2,883 Net interest income, FTE basis
52,394 51,606
52,295 51,137 49,356 LESS: Interest recovered on previously
nonaccrual loans
343 565
1,089 255 298 Net interest
income, FTE basis, excluding interest recovered on previously
nonaccrual loans (non-GAAP)
52,051
51,041 51,206 50,882
49,058 Net Interest Margin (FTE basis)
2.88
% 2.91 % 2.96 % 2.88 % 2.84 % Net Interest Margin, FTE
basis, excluding interest recovered on previously nonaccrual loans
(non-GAAP)
2.86 % 2.88 % 2.90 % 2.86 % 2.82 %
(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 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. 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/20161020006400/en/
Adam BromleyVice President, Corporate Finance and Director of
Investor RelationsBoston Private Financial Holdings, Inc.(617)
912-4386abromley@bostonprivate.com
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