Third Quarter Highlights:
- Total Revenue increased 8%
year-over-year driven by a 14% increase in Net Interest Income and
a 3% increase in Total Core Fees and Income.
- Average Total Deposits increased 8%
year-over-year to $6.4 billion, and Average Total Loans increased
10% year-over-year to $6.4 billion.
- Total Assets Under Management/Advisory
(“AUM”) increased 8% year-over-year to $29.8 billion.
- Annualized Return on Average Common
Equity for the quarter was 9.9% and annualized Return on Average
Tangible Common Equity for the quarter was 13.2%.
Boston Private Financial Holdings, Inc. (NASDAQ: BPFH) (the
“Company” or “BPFH”) today reported third quarter 2017 GAAP Net
Income Attributable to the Company of $19.8 million, compared to
$23.4 million for the second quarter of 2017 and $19.6 million for
the third quarter of 2016. Third quarter 2017 diluted earnings per
share were $0.22, compared to $0.27 in the second quarter of 2017,
and $0.22 in the third quarter of 2016.
“Our Company demonstrated good underlying business performance
during the third quarter,” said Clayton G. Deutsch, CEO. “Our
Private Bank delivered strong year-over-year revenue growth driven
by double-digit net interest income growth and core Net Interest
Margin expansion. Our Wealth Management & Trust segment
recorded a fourth consecutive quarter of improvement in net flows
and a second consecutive quarter of positive EBITDA, while our
Wealth Advisory and Investment Management segments delivered
sequential earnings improvement and margins above our targets.”
Core Fees and Income/Assets Under Management
Total Core Fees and Income for the third quarter were $39.1
million, a 5% increase on a linked quarter basis and a 3% increase
year-over-year. The increase reflects higher levels of AUM in the
Wealth Management & Trust, Investment Management, and Wealth
Advisory segments on both a linked quarter basis and year-over-year
basis. Private Banking fees increased linked quarter, while
decreasing year-over-year due to changes in swap fee income.
AUM was $29.8 billion at the end of the third quarter, an
increase of 2% from the previous quarter and 8% year-over-year. AUM
increased due to positive market action, partially offset by
negative net flows. The Company experienced net flows of negative
$109 million during the third quarter, compared to negative $180
million and negative $336 million in the second quarter of 2017 and
third quarter of 2016, respectively. During the third quarter, net
flows by segment were $114 million for Wealth Management &
Trust, negative $152 million for Investment Management, and
negative $71 million for Wealth Advisory.
Net Interest Income
Net Interest Income for the third quarter was $56.6 million, a
decrease of 1% from $57.1 million for the second quarter of 2017
and an increase of 14% from $49.9 million for the third quarter of
2016. The current quarter includes $0.1 million of interest
recovered on previous nonaccrual loans compared to $2.0 million for
the second quarter and $0.3 million for the third quarter of 2016.
Excluding interest recovered on previous nonaccrual loans, Net
Interest Income on an FTE basis increased 2% linked quarter and 14%
year-over-year.
Net Interest Margin was 3.02% for the third quarter of 2017, a
decrease of 5 basis points from the second quarter of 2017 and an
increase of 14 basis points from the third quarter of 2016.
Excluding interest recovered on previous nonaccrual loans, Net
Interest Margin for the third quarter was 3.02%, an increase of 5
basis points from the second quarter of 2017 and an increase of 16
basis points from the third quarter of 2016.
Total Operating Expense
Total Operating Expense for the third quarter of 2017 was $69.3
million, up 2% linked quarter from $67.8 million and 12%
year-over-year primarily due to increased compensation expense and
technology initiatives.
Provision and Asset Quality
The Company recorded a provision credit of $0.4 million for the
third quarter of 2017, compared to a provision credit of $6.1
million for the second quarter of 2017 and $0.1 million for the
third quarter of 2016. The provision credit in the third quarter of
2017 was due to net recoveries and improved loss factors, partially
offset by an increase in Criticized Loans and loan growth.
Criticized Loans as of September 30, 2017 were $146.0 million,
an increase of 13% linked quarter and a decrease of 8%
year-over-year. Nonaccrual Loans (“Nonaccruals”) as of September
30, 2017 were $13.6 million, a decrease of 16% linked quarter and
17% year-over-year. As a percentage of Total Loans, Nonaccruals
were 21 basis points as of September 30, 2017, down 5 basis points
compared to June 30, 2017, and down 7 basis points from September
30, 2016.
Additional credit metrics are listed below:
(In millions)
September 30, 2017
June 30, 2017 March 31,
2017 December 31, 2016
September 30, 2016 Total Criticized Loans $
146.0 $ 129.5 $ 135.1 $ 118.5 $ 158.8 Total Loans
30-89 Days Past Due and Accruing (13) $ 5.3 $ 3.2 $ 28.7 $ 15.1 $
4.6 Total Net Loans (Charged-off)/ Recovered $ 0.3 $ 3.1 $ 0.1 $
1.5 $ 2.1 Allowance for Loan Losses/
Total Loans
1.17 % 1.19 % 1.25 % 1.28 % 1.32 %
Capital Ratios
The Company's capital ratios are listed below:
September 30, 2017
June 30, 2017 March 31,
2017 December 31, 2016
September 30, 2016 BPFH Ratios:
Total Risk-Based Capital * 14.3 % 14.1 % 13.8 % 13.9 % 14.0
% Tier I Risk-Based Capital * 13.0 % 12.9 % 12.6 % 12.6 % 12.7 %
Tier I Leverage Capital * 9.4 % 9.3 % 9.2 % 9.4 % 9.5 % TCE/TA (4)
7.4 % 7.4 % 7.0 % 7.1 % 7.4 % Tier I Common Equity/
Risk Weighted Assets *
10.4 % 10.3 % 10.0 % 10.0 % 10.0 %
*September 30, 2017 information is presented based on estimated
data.
Dividend PaymentsConcurrent with
the release of third quarter 2017 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 November 3,
2017, and the payment date is November 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 November 15, 2017, and the payment date is
December 15, 2017.
Non-GAAP Financial MeasuresThe
Company uses certain non-GAAP financial measures to provide
information for investors to effectively analyze financial trends
of ongoing business activities, and to enhance comparability with
peers across the financial sector.
These non-GAAP financial measures include tangible book value
per share; the TCE/TA ratio; return on average common equity;
return on average tangible common equity; pre-tax, pre-provision
income; 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, also referred to as core net interest margin.
A detailed reconciliation table of the Company's GAAP to
non-GAAP measures is attached.
Conference CallManagement will hold
a conference call at 8 a.m. Eastern Time on Thursday, October 19,
2017, to discuss the financial results, business highlights and
outlook. To access the call:
Dial In #: (888) 317-6003Elite Entry Number: 5396726
Replay Information:Available from October 19, 2017 at 12 noon
until October 26, 2017Dial In #: (877) 344-7529Conference Number:
10112880
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, Trust,
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 $29 billion of client assets.
The Company's affiliates 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, wealth advisory, and trust 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; operational
risks including, but not limited to, cybersecurity, fraud and
natural disasters; 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)
September 30, 2017 June 30, 2017
March 31, 2017 December 31, 2016
September 30, 2016 (In thousands, except share and
per share data) Assets: Cash and cash equivalents
$ 110,440 $ 97,032 $ 165,186 $ 106,557 $ 67,631
Investment securities available-for-sale
1,189,827 1,188,720
1,256,208 1,264,132 1,249,578 Investment securities
held-to-maturity
84,090 99,024 98,424 93,079 98,881 Stock in
Federal Home Loan Bank and Federal Reserve Bank
61,714
45,568 50,133 44,077 36,084 Loans held for sale
1,957 2,870
350 3,464 5,316 Total loans
6,413,201 6,279,928 6,250,217
6,114,354 5,869,498 Less: Allowance for loan losses
74,873
75,009 78,031 78,077 77,669 Net loans
6,338,328 6,204,919 6,172,186 6,036,277 5,791,829 Other real
estate owned (“OREO”)
— — — 1,690 1,800 Premises and
equipment, net
36,546 34,135 32,974 31,827 32,089 Goodwill
142,554 142,554 142,554 142,554 152,082 Intangible assets,
net
22,447 23,873 25,299 26,725 28,267 Fees receivable
12,560 12,639 12,230 13,400 11,185 Accrued interest
receivable
21,823 20,680 20,790 20,479 18,062 Deferred
income taxes, net
46,088 49,827 53,686 55,460 39,319 Other
assets
201,024 185,805 185,100 130,753
149,427 Total assets
$ 8,269,398 $
8,107,646 $ 8,215,120 $ 7,970,474 $ 7,681,550
Liabilities: Deposits
$ 6,262,347 $ 6,381,339
$ 6,246,620 $ 6,085,146 $ 5,812,243 Deposits held for sale
—
— — — 105,788 Securities sold under agreements to repurchase
59,903 29,232 67,249 59,624 77,466 Federal funds purchased
70,000 40,000 — 80,000 125,000 Federal Home Loan Bank
borrowings
812,773 618,989 885,445 734,205 522,681 Junior
subordinated debentures
106,363 106,363 106,363 106,363
106,363 Other liabilities
127,069 115,088
110,310 119,683 134,322 Total liabilities
7,438,455 7,291,011 7,415,987 7,185,021
6,883,863
Redeemable Noncontrolling Interests
(“RNCI”) 15,882 17,216 17,232 16,972 16,199
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
84,082 84,015 84,134 83,732 83,195 Additional paid-in
capital
606,802 602,507 602,748 597,454 597,209 Retained
earnings
76,455 66,807 53,510 47,929 39,415 Accumulated
other comprehensive income/ (loss)
(4,823 ) (6,038 )
(10,237 ) (12,548 ) 10,134 Total Company’s shareholders’ equity
810,269 795,044 777,908 764,320
777,706 Noncontrolling interests
4,792 4,375
3,993 4,161 3,782 Total shareholders’ equity
815,061 799,419 781,901 768,481
781,488 Total liabilities, redeemable noncontrolling interests and
shareholders’ equity
$ 8,269,398 $ 8,107,646
$ 8,215,120 $ 7,970,474 $ 7,681,550
Boston Private Financial Holdings,
Inc.
Selected Financial Data
(Unaudited)
Three Months Ended September 30, 2017
June 30, 2017 March
31, 2017 December 31, 2016
September 30, 2016 Interest and
dividend income: (In thousands, except share and per share
data) Loans
$ 58,096 $ 57,736 $ 53,636 $ 51,499 $
50,074 Taxable investment securities
1,569 1,592 1,670 1,592
1,537 Non-taxable investment securities
1,664 1,655 1,606
1,520 1,444 Mortgage-backed securities
3,267 3,495 3,504
3,290 3,079 Federal funds sold and other
916 831
600 508 469 Total interest and dividend
income
65,512 65,309 61,016 58,409
56,603
Interest expense: Deposits
5,356
4,949 4,531 4,152 4,163 Federal Home Loan Bank borrowings
2,657 2,489 2,111 1,987 1,929 Junior subordinated debentures
761 716 671 674 591 Repurchase agreements and other
short-term borrowings
111 10 61 77
49 Total interest expense
8,885 8,164
7,374 6,890 6,732 Net interest income
56,627 57,145 53,642 51,519 49,871 Provision/ (credit) for
loan losses
(432 ) (6,114 ) (181 ) (1,128 ) (138 )
Net interest income after provision/ (credit) for loan losses
57,059 63,259 53,823 52,647
50,009
Fees and other income: Investment management
fees
11,274 11,081 10,839 12,408 10,717 Wealth advisory fees
13,279 12,961 12,823 12,568 12,750 Wealth management and
trust fees
11,619 11,161 10,826 11,031 10,826 Other banking
fee income
2,726 1,964 1,694 2,387 3,447 Gain on sale of
loans, net
169 59 138 105 156
Total core fees and income
39,067 37,226
36,320 38,499 37,896 Gain/ (loss) on
sale of investments, net
230 237 19 2 273 Gain/ (loss) on
OREO, net
— — (46 ) (110 ) 137 Gain on sale of offices
— — — 2,862 — Other
970 555 213
2,705 1,706 Total other income
1,200
792 186 5,459 2,116
Total
revenue 96,894 95,163 90,148 95,477 89,883
Operating
expense: Salaries and employee benefits
45,168 43,493
45,825 39,669 40,924 Occupancy and equipment
11,283 10,779
10,649 10,039 9,521 Professional services
3,308 3,106 3,314
2,756 2,290 Marketing and business development
2,216 1,971
1,660 2,022 1,623 Contract services and data processing
1,608 1,641 1,580 1,743 1,865 Amortization of intangibles
1,426 1,426 1,426 1,542 1,568 Impairment of goodwill
— — — 9,528 — FDIC insurance
647 879 766 727 722
Restructuring
— — — — — Other
3,690 4,526
3,560 3,817 3,157 Total operating
expense
69,346 67,821 68,780 71,843
61,670 Income before income taxes
27,980
33,456 21,549 24,762 28,351 Income tax expense
8,289
9,963 6,553 7,247 8,652 Net income from
continuing operations
19,691 23,493 14,996 17,515 19,699 Net
income from discontinued operations (1)
1,186 1,063
1,632 1,184 1,047 Net income before
attribution to noncontrolling interests
20,877 24,556 16,628
18,699 20,746 Less: Net income attributable to noncontrolling
interests
1,074 1,150 966 1,147
1,110
Net income attributable to the Company $
19,803 $ 23,406 $ 15,662 $ 17,552
$ 19,636
Boston Private Financial Holdings,
Inc.
Selected Financial Data
(Unaudited)
Nine Months Ended September 30, 2017
September 30, 2016 Interest and
dividend income: (In thousands, except share and per share
data) Loans
$ 169,468 $ 149,851 Taxable
investment securities
4,831 4,638 Non-taxable investment
securities
4,925 4,234 Mortgage-backed securities
10,266 9,126 Federal funds sold and other
2,347
1,381 Total interest and dividend income
191,837 169,230
Interest expense:
Deposits
14,836 12,420 Federal Home Loan Bank borrowings
7,257 6,021 Junior subordinated debentures
2,148
1,753 Repurchase agreements and other short-term borrowings
182 117 Total interest expense
24,423
20,311 Net interest income
167,414 148,919
Provision/ (credit) for loan losses
(6,727 ) (5,806 )
Net interest income after provision/ (credit) for loan losses
174,141 154,725
Fees and other income:
Investment management fees
33,194 32,002 Wealth advisory
fees
39,063 38,013 Wealth management and trust fees
33,606 32,950 Other banking fee income
6,384 9,662
Gain on sale of loans, net
366 562 Total core
fees and income
112,613 113,189 Gain/ (loss)
on sale of investments, net
486 519 Gain/ (loss) on OREO,
net
(46 ) 417 Other
1,738 704
Total other income
2,178 1,640
Total
revenue 282,205 263,748
Operating expense:
Salaries and employee benefits
134,486 124,098 Occupancy and
equipment
32,711 29,036 Professional services
9,728
8,820 Marketing and business development
5,847 5,604
Contract services and data processing
4,829 5,281
Amortization of intangibles
4,278 4,740 FDIC insurance
2,292 2,757 Restructuring
— 2,017 Other
11,776
10,757 Total operating expense
205,947
193,110 Income before income taxes
82,985 76,444
Income tax expense
24,805 23,716 Net income
from continuing operations
58,180 52,728 Net income from
discontinued operations (1)
3,881 4,357 Net
income before attribution to noncontrolling interests
62,061
57,085 Less: Net income attributable to noncontrolling interests
3,190 3,010
Net income attributable to the
Company $ 58,871 $ 54,075
Boston Private Financial Holdings,
Inc.
Selected Financial Data
(Unaudited)
Three Months Ended PER SHARE DATA:
September 30, 2017 June 30,
2017 March 31, 2017
December 31, 2016 September
30, 2016 (In thousands, except share and per share
data) Calculation of Income for EPS: Net income
attributable to the Company
$ 19,803 $ 23,406 $
15,662 $ 17,552 $ 19,636
Adjustments to Net Income Attributable to
the Company to arrive at Net Income Attributable to Common
Shareholders, treasury stock method (2)
(1,146 ) (577 ) (1,166 ) (1,798 ) (1,006 )
Net
Income Attributable to the Common Shareholders, treasury stock
method $ 18,657 $ 22,829 $ 14,496
$ 15,755 $ 18,630
End of Period
Common Shares Outstanding 84,082,250 84,015,141
84,134,104 83,731,769 83,194,714
Weighted Average Shares
Outstanding: Weighted average basic shares outstanding
82,556,225 82,298,493 81,951,179 81,217,391 81,301,499
Weighted average diluted shares outstanding (3)
84,888,311
84,741,680 84,560,918 83,438,137 83,562,283
Diluted Total
Earnings per Share $ 0.22 $ 0.27 $ 0.17 $ 0.19 $
0.22
Nine Months Ended PER SHARE
DATA: September 30, 2017
September 30, 2016 (In thousands, except share
and per share data)
Calculation of Income for EPS: Net income attributable to
the Company
$ 58,871 $ 54,075
Adjustments to Net Income Attributable to
the Company to arrive at Net Income Attributable to Common
Shareholders, treasury stock method (2)
(2,889 ) (2,265 )
Net Income Attributable to the
Common Shareholders, treasury stock method $
55,982 $ 51,810
Weighted Average
Shares Outstanding: Weighted average basic shares outstanding
82,270,849 81,280,014 Weighted average diluted shares
outstanding (3)
84,741,172 83,430,480
Diluted
Total Earnings per Share $ 0.66 $ 0.62
Boston Private Financial Holdings,
Inc.
Selected Financial Data
(Unaudited)
(In thousands, except per share data)
September 30,
2017 June 30, 2017 March 31,
2017 December 31, 2016 September 30,
2016 FINANCIAL DATA: Book Value Per Common Share
$ 9.13 $ 8.95 $ 8.73 $ 8.61 $ 8.82 Tangible Book
Value Per Share (4)
$ 7.16 $ 6.97 $ 6.73 $ 6.59 $
6.65 Market Price Per Share
$ 16.55 $ 15.35 $ 16.40 $
16.55 $ 12.83
ASSETS UNDER MANAGEMENT AND ADVISORY:
Wealth Management and Trust
$ 7,703,000 $ 7,429,000 $
7,260,000 $ 7,008,000 $ 7,334,000 Investment Managers
11,083,000 10,901,000 10,907,000 10,571,000 10,176,000
Wealth Advisory
10,992,000 10,744,000 10,579,000 9,989,000
10,028,000 Less: Inter-company Relationship
(11,000 )
(11,000 ) (11,000 ) (11,000 ) (11,000 ) Total Assets Under
Management and Advisory
$ 29,767,000 $
29,063,000 $ 28,735,000 $ 27,557,000 $
27,527,000
FINANCIAL RATIOS: Total Equity/
Total Assets
9.86 % 9.86 % 9.52 % 9.64 % 10.17 %
Tangible Common Equity/ Tangible Assets (4)
7.43 %
7.37 % 7.04 % 7.07 % 7.38 % Tier I Common Equity/ Risk Weighted
Assets (4)
10.42 % 10.28 % 9.97 % 10.00 % 10.02 %
Allowance for Loan Losses/ Total Loans
1.17 % 1.19 %
1.25 % 1.28 % 1.32 % Allowance for Loan Losses/ Nonaccrual Loans
550 % 464 % 373 % 451 % 471 % Return on Average
Assets - Three Months Ended (Annualized)
0.96 % 1.15
% 0.79 % 0.89 % 1.03 % Return on Average Common Equity - Three
Months Ended (Annualized) (5)
9.87 % 12.12 % 8.26 %
9.07 % 10.20 % Return on Average Tangible Common Equity - Three
Months Ended (Annualized) (5)
13.24 % 16.27 % 11.43 %
12.75 % 14.30 % Efficiency Ratio - Three Months Ended (6)
68.06 % 67.69 % 72.45 % 61.87 % 65.04 %
DEPOSIT DETAIL: Demand deposits (noninterest-bearing)
$ 1,850,833 $ 1,935,622 $ 1,772,854 $ 1,753,648 $
1,770,631 NOW
636,013 631,973 620,280 578,657 557,482
Savings
74,333 69,892 74,293 74,162 73,480 Money market
3,009,779 3,055,642 3,176,472 3,102,048 2,879,952
Certificates of deposit
691,389 688,210
602,721 576,631 530,698 Total Deposits
$ 6,262,347 $ 6,381,339 $ 6,246,620
$ 6,085,146 $ 5,812,243
Boston Private Financial Holdings,
Inc.
Selected Financial Data
(Unaudited)
Average Balance Interest Income/Expense
Average Yield/Rate (In thousands)
Three Months Ended
Three Months Ended Three Months Ended AVERAGE
BALANCE SHEET: 09/30/17 06/30/17
09/30/16 09/30/17
06/30/17 09/30/16 09/30/17
06/30/17 09/30/16
AVERAGE ASSETS
Interest-Earning Assets:
Cash and Investments: Taxable investment securities
$
353,374 $ 363,166 $ 372,852
$ 1,569 $ 1,592 $
1,537
1.77 % 1.75 % 1.65 % Non-taxable investment
securities (9)
295,727 294,836 271,864
2,559 2,546
2,221
3.46 % 3.45 % 3.27 % Mortgage-backed securities
631,052 653,201 629,748
3,267 3,495 3,079
2.07
% 2.14 % 1.96 % Federal funds sold and other
146,285
199,230 152,892
916 831
469
2.47 % 1.66 % 1.20 % Total Cash and
Investments
1,426,438 1,510,433 1,427,356
8,311 8,464 7,306
2.33
% 2.24 % 2.05 % Loans (10): Commercial and Industrial (9)
994,388 987,144 1,065,787
10,001 9,773 10,626
3.94 % 3.92 % 3.90 % Commercial Real Estate (9)
2,381,583 2,358,409 1,976,327
25,579 26,433 19,860
4.20 % 4.43 % 3.93 % Construction and Land
113,562 119,366 117,183
1,415 1,377 1,263
4.88
% 4.56 % 4.22 % Residential
2,567,044 2,489,072
2,300,392
20,423 19,574 17,812
3.18 % 3.15 %
3.10 % Home Equity
106,744 109,942 122,505
1,128
1,085 1,105
4.19 % 3.96 % 3.59 % Other Consumer
187,184 195,384 182,315
1,554
1,526 1,154
3.29 % 3.13 % 2.52 %
Total Loans
6,350,505 6,259,317 5,764,509
60,100 59,768 51,820
3.73
% 3.79 % 3.55 % Total Earning Assets
7,776,943
7,769,750 7,191,865
68,411 68,232
59,126
3.48 % 3.49 % 3.25 % LESS:
Allowance for Loan Losses
75,166 80,614 76,424 Cash and due
From Banks (Non-Interest Bearing)
42,031 42,166 39,301 Other
Assets
455,820 450,703 445,517
TOTAL
AVERAGE ASSETS $ 8,199,628 $ 8,182,005
$ 7,600,259
AVERAGE LIABILITIES, RNCI, AND
SHAREHOLDERS' EQUITY Interest-Bearing Liabilities:
Interest-Bearing Deposits (10): NOW
$ 630,282 $
640,378 $ 551,085
$ 189 $ 172 $ 120
0.12
% 0.11 % 0.09 % Savings
71,900 71,505 76,999
16 15 25
0.09 % 0.08 % 0.13 % Money Market
3,065,059 3,173,768 2,922,687
3,436 3,244 2,877
0.44 % 0.41 % 0.39 % Certificates of Deposit
671,992 665,668 560,546
1,715
1,518 1,141
1.01 % 0.91 % 0.81 %
Total Interest-Bearing Deposits (14)
4,439,233 4,551,319
4,111,317
5,356 4,949 4,163
0.48 % 0.44 % 0.40
% Junior Subordinated Debentures
106,363 106,363 106,363
761 716 591
2.80 % 2.67 % 2.17 % FHLB
Borrowings and Other
736,035 703,149 624,528
2,768 2,499 1,978
1.47
% 1.41 % 1.24 % Total Interest-Bearing Liabilities
5,281,631 5,360,831 4,842,208
8,885 8,164 6,732
0.66 %
0.61 % 0.55 % Non-interest Bearing Demand
Deposits (10) (14)
1,966,479 1,899,916 1,824,548 Payables and Other Liabilities
121,288 106,657 135,901 Total Average
Liabilities
7,369,398 7,367,404 6,802,657 Redeemable
Noncontrolling Interests
21,634 21,075 19,504 Average
Shareholders' Equity
808,596 793,526 778,098
TOTAL AVERAGE LIABILITIES, RNCI, AND SHAREHOLDERS'
EQUITY $ 8,199,628 $ 8,182,005 $
7,600,259 Net Interest Income - on a Fully Taxable
Equivalent Basis (FTE)
$ 59,526 $ 60,068 $ 52,394
LESS: FTE Adjustment (9)
2,899 2,923 2,523
Net Interest Income (GAAP Basis)
$ 56,627
$ 57,145 $ 49,871 Interest Rate Spread
2.82 % 2.88 % 2.70 % Bank only Net Interest Margin
3.07 % 3.12 % 2.92 % Net Interest Margin
3.02
% 3.07 % 2.88 %
Boston Private Financial Holdings,
Inc.
Selected Financial Data
(Unaudited)
Average Balance Interest Income/Expense
Average Yield/Rate (In thousands)
Nine Months Ended
Nine Months Ended Nine Months Ended AVERAGE
BALANCE SHEET: 09/30/17 09/30/16
09/30/17 09/30/16 09/30/17
09/30/16 AVERAGE ASSETS
Interest-Earning Assets: Cash and
Investments: Taxable investment securities
$ 369,929
$ 373,273
$ 4,831 $ 4,638
1.74 % 1.66 %
Non-taxable investment securities (9)
295,195 265,280
7,576 6,512
3.42 % 3.27 % Mortgage-backed
securities
652,159 594,461
10,266 9,126
2.10
% 2.05 % Federal funds sold and other
169,114
160,114
2,347 1,381
1.55
% 1.14 % Total Cash and Investments
1,486,397
1,393,128
25,020 21,657
2.21
% 2.07 % Loans (10): Commercial and Industrial (9)
988,449 1,072,051
29,077 32,358
3.88 %
3.97 % Commercial Real Estate (9)
2,354,996 1,915,839
75,556 59,216
4.23 % 4.06 % Construction and
Land
115,629 147,548
4,036 4,367
4.60 %
3.89 % Residential
2,494,151 2,262,262
58,988 52,555
3.15 % 3.10 % Home Equity
111,423 121,849
3,302 3,260
3.96 % 3.57 % Other Consumer
191,550 172,578
4,500 3,193
3.14 % 2.47 % Total Loans
6,256,198
5,692,127
175,459 154,949
3.71 % 3.60 % Total Earning Assets
7,742,595
7,085,255
200,479 176,606
3.43 % 3.30 % LESS: Allowance for Loan Losses
77,957 78,008 Cash and due From Banks (Non-Interest Bearing)
42,006 39,869 Other Assets
436,373 432,005
TOTAL AVERAGE ASSETS $ 8,143,017
$ 7,479,121
AVERAGE LIABILITIES, RNCI, AND SHAREHOLDERS'
EQUITY Interest-Bearing Liabilities: Interest-Bearing Deposits
(10):
NOW
$ 616,054 $ 549,429
$ 472 $ 311
0.10 % 0.08 % Savings
72,831 75,958
49
71
0.09 % 0.13 % Money Market
3,149,545
2,958,051
9,801 8,615
0.42 % 0.39 %
Certificates of Deposit
642,820 566,022
4,514 3,423
0.94 % 0.81 % Total
Interest-Bearing Deposits (14)
4,481,250 4,149,460
14,836 12,420
0.44 % 0.40 % Junior
Subordinated Debentures
106,363 106,363
2,148 1,753
2.66 % 2.17 % FHLB Borrowings and Other
722,087 623,030
7,439 6,138
1.36 % 1.29 % Total Interest-Bearing
Liabilities
5,309,700 4,878,853
24,423
20,311
0.61 % 0.55 % Non-interest
Bearing DemandDeposits (10) (14)
1,903,709 1,691,872
Payables and Other Liabilities
115,622 121,601
Total Average Liabilities
7,329,031 6,692,326 Redeemable
Noncontrolling Interests
21,341 20,225 Average Shareholders'
Equity
792,645 766,570
TOTAL AVERAGE
LIABILITIES, RNCI, AND SHAREHOLDERS' EQUITY $
8,143,017 $ 7,479,121 Net Interest Income - on
a Fully Taxable Equivalent Basis (FTE)
$ 176,056 $
156,295 LESS: FTE Adjustment (9)
8,642 7,376
Net Interest Income (GAAP Basis)
$ 167,414 $
148,919 Interest Rate Spread
2.82 % 2.75 %
Bank only Net Interest Margin
3.06 % 2.96 % Net
Interest Margin
3.01 % 2.92 %
Boston Private Financial Holdings,
Inc.
Selected Financial Data
(Unaudited)
(In thousands)
September 30, 2017 June
30, 2017 March 31, 2017 December
31, 2016 September 30, 2016 LOAN DATA
(11): Other Commercial and Industrial Loans: New England
$ 503,322 $ 429,598 $ 458,687 $ 493,451 $ 461,201 San
Francisco Bay Area
50,686 49,163 55,289 50,578 59,936
Southern California
64,248 62,995 66,378
67,341 67,583 Total Other Commercial and Industrial
Loans
$ 618,256 $ 541,756 $ 580,354
$ 611,370 $ 588,720 Commercial Tax Exempt Loans: New
England
$ 320,172 $ 312,783 $ 318,137 $ 317,691 $
263,418 San Francisco Bay Area
99,540 91,666 79,517 69,064
69,366 Southern California
11,638 11,708
11,778 11,849 11,918 Total Commercial Tax Exempt
Loans
$ 431,350 $ 416,157 $ 409,432
$ 398,604 $ 344,702 Total Commercial and Industrial
Loans
$ 1,049,606 957,913 989,786
1,009,974 933,422 Commercial Real Estate Loans: New
England
$ 988,788 $ 993,426 $ 1,017,565 $ 1,012,284 $
987,758 San Francisco Bay Area
698,148 688,751 686,019
637,042 611,224 Southern California
676,223 674,168
665,043 652,918 621,336 Total Commercial Real
Estate Loans
$ 2,363,159 $ 2,356,345 $
2,368,627 $ 2,302,244 $ 2,220,318 Construction and
Land Loans: New England
$ 61,635 $ 74,919 $ 58,737 $
47,434 $ 56,268 San Francisco Bay Area
20,893 22,177 28,148
29,629 26,400 Southern California
35,763 33,808
30,122 27,776 16,028 Total Construction and
Land Loans
$ 118,291 $ 130,904 $
117,007 $ 104,839 $ 98,696 Residential Loans: New
England
$ 1,558,587 $ 1,540,393 $ 1,508,138 $
1,456,592 $ 1,409,385 San Francisco Bay Area
510,956 488,854
474,294 473,102 476,986 Southern California
531,245
495,978 481,184 450,167 429,719 Total
Residential Loans
$ 2,600,788 $ 2,525,225
$ 2,463,616 $ 2,379,861 $ 2,316,090 Home
Equity Loans: New England
$ 72,149 $ 71,953 $ 80,904
$ 87,280 $ 90,592 San Francisco Bay Area
26,052 28,400
26,006 25,129 23,826 Southern California
9,026 8,196
7,626 6,408 6,851 Total Home Equity Loans
$ 107,227 $ 108,549 $ 114,536 $
118,817 $ 121,269 Other Consumer Loans: New England
$
150,309 $ 175,644 $ 175,096 $ 186,680 $ 167,140 San
Francisco Bay Area
15,302 17,909 17,163 7,517 6,764 Southern
California
8,519 7,439 4,386 4,422
5,799 Total Other Consumer Loans
$ 174,130
$ 200,992 $ 196,645 $ 198,619 $ 179,703
Total Loans: New England
$ 3,654,962 $ 3,598,716 $
3,617,264 $ 3,601,412 $ 3,435,762 San Francisco Bay Area
1,421,577 1,386,920 1,366,436 1,292,061 1,274,502 Southern
California
1,336,662 1,294,292 1,266,517
1,220,881 1,159,234 Total Loans
$
6,413,201 $ 6,279,928 $ 6,250,217 $
6,114,354 $ 5,869,498
Boston Private Financial Holdings,
Inc.
Selected Financial Data
(Unaudited)
(In thousands)
September 30, 2017 June
30, 2017 March 31, 2017 December
31, 2016 September 30, 2016 CREDIT
QUALITY (11): Special Mention Loans: New England
$
37,569 $ 34,538 $ 21,596 $ 14,750 $ 25,248 San Francisco Bay
Area
23,898 23,399 23,850 21,901 22,786 Southern California
17,207 4,327 4,350 884 6,278
Total Special Mention Loans
$ 78,674 $
62,264 $ 49,796 $ 37,535 $ 54,312
Accruing Substandard Loans (12): New England
$ 8,196
$ 10,185 $ 12,157 $ 10,972 $ 19,748 San Francisco Bay Area
11,622 6,574 15,824 15,890 19,157 Southern California
33,923 34,339 36,398 36,809
49,148 Total Accruing Substandard Loans
$
53,741 $ 51,098 $ 64,379 $ 63,671
$ 88,053 Nonaccruing Loans: New England
$
7,380 $ 9,880 $ 14,407 $ 10,081 $ 11,020 San Francisco Bay
Area
1,494 1,857 2,312 2,989 3,543 Southern California
4,749 4,439 4,226 4,245 1,928
Total Nonaccruing Loans
$ 13,623 $
16,176 $ 20,945 $ 17,315 $ 16,491 Other
Real Estate Owned: New England
$ — $ — $ — $ 1,690 $
1,800 San Francisco Bay Area
— — — — — Southern California
— — — — — Total Other
Real Estate Owned
$ — $ — $ — $
1,690 $ 1,800 Loans 30-89 Days Past Due and Accruing
(13): New England
$ 4,664 $ 3,182 $ 9,843 $ 10,311 $
2,735 San Francisco Bay Area
430 12 10,111 591 1,018
Southern California
198 — 8,771 4,235
836 Total Loans 30-89 Days Past Due and Accruing
$ 5,292 $ 3,194 $ 28,725 $
15,137 $ 4,589 Loans (Charged-off)/ Recovered, Net
for the Three Months Ended: New England
$ 73 $ 667 $
79 $ 1,120 $ 1,704 San Francisco Bay Area
206 2,856 35 384
318 Southern California
17 (431 ) 21 33
32 Total Net Loans (Charged-off)/ Recovered
$
296 $ 3,092 $ 135 $ 1,537 $
2,054 Loans (Charged-off)/ Recovered, Net for the Nine
Months Ended: New England
$ 819 $ 834 San Francisco
Bay Area
3,097 4,309 Southern California
(393
) (168 ) Total Net Loans (Charged-off)/ Recovered
$
3,523 $ 4,975
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, 2016 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 share and per share data)
September
30, 2017 June 30, 2017 March 31,
2017 December 31, 2016 September 30,
2016 Total Balance Sheet Assets
$ 8,269,398 $
8,107,646 $ 8,215,120 $ 7,970,474 $ 7,681,550 LESS: Goodwill and
Intangible Assets, net
(165,001 ) (166,427 ) (167,853
) (169,279 ) (180,349 ) Tangible Assets (non-GAAP)
$
8,104,397 $ 7,941,219 $ 8,047,267 $ 7,801,195 $ 7,501,201
Total Shareholders' Equity
$ 815,061 $ 799,419 $
781,901 $ 768,481 $ 781,488 LESS: Series D Preferred Stock
(non-convertible)
(47,753 ) (47,753 ) (47,753 )
(47,753 ) (47,753 ) LESS: Goodwill and Intangible Assets, net
(165,001 ) (166,427 ) (167,853 ) (169,279 ) (180,349
) Total adjusting items
(212,754 ) (214,180 )
(215,606 ) (217,032 ) (228,102 ) Tangible Common Equity (non-GAAP)
$ 602,307 $ 585,239 $ 566,295 $
551,449 $ 553,386 Total Equity/Total Assets
9.86 % 9.86 % 9.52 % 9.64 % 10.17 % Tangible Common
Equity/Tangible Assets (non-GAAP)
7.43 % 7.37 % 7.04
% 7.07 % 7.38 % Total Risk Weighted Assets *
$
5,831,558 $ 5,765,471 $ 5,806,853 $ 5,716,037 $ 5,534,711
Tier I Common Equity *
$ 607,822 $ 592,845 $ 578,941
$ 571,663 $ 554,368 Tier I Common Equity/ Risk Weighted Assets
10.42 % 10.28 % 9.97 % 10.00 % 10.02 % End of
Period Shares Outstanding
84,082,250 84,015,141 84,134,104
83,731,769 83,194,714 Book Value Per Common Share
$
9.13 $ 8.95 $ 8.73 $ 8.61 $ 8.82 Tangible Book Value Per
Share (non-GAAP)
$ 7.16 $ 6.97 $ 6.73 $ 6.59 $ 6.65
* Risk Weighted Assets and Tier I Common
Equity for September 30, 2017 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)
September
30, 2017 June 30, 2017
March 31, 2017
December 31, 2016 September 30,
2016 Total average shareholders' equity
$
808,596 $ 793,526 $ 774,251 $ 777,466 $ 778,098 LESS:
Average Series D preferred stock (non-convertible)
(47,753
) (47,753 ) (47,753 ) (47,753 ) (47,753 ) Average common
equity (non-GAAP)
760,843 745,773 726,498
729,713 730,345 LESS: Average goodwill and
intangible assets, net
(165,766 ) (167,204 ) (168,681
) (179,535 ) (181,191 ) Average Tangible Common Equity (non-GAAP)
$ 595,077 $ 578,569 $ 557,817 $
550,178 $ 549,154 Net income attributable to
the Company
$ 19,803 $ 23,406 $ 15,662 $ 17,552 $
19,636 LESS: Dividends on Series D preferred stock
(868
) (869 ) (869 ) (869 ) (868 ) Common net income (non-GAAP)
18,935 22,537 14,793 16,683 18,768 ADD: Amortization of
intangibles, net of tax (35%)
927 927 927
1,002 1,019 Tangible common net income
(non-GAAP)
$ 19,862 $ 23,464 $ 15,720
$ 17,685 $ 19,787 Return on Average
Equity - (Annualized)
9.72 % 11.83 % 8.20 % 8.96 %
10.01 % Return on Average Common Equity - (Annualized) (non-GAAP)
9.87 % 12.12 % 8.26 % 9.07 % 10.20 % Return on
Average Tangible Common Equity - (Annualized) (non-GAAP)
13.24 % 16.27 % 11.43 % 12.75 % 14.30 %
Nine Months Ended (In thousands)
September 30,
2017 September 30, 2016 Total
average shareholders' equity
$ 792,645 $ 766,570
LESS: Average Series D preferred stock (non-convertible)
(47,753 ) (47,753 ) Average common equity (non-GAAP)
744,892 718,817 LESS: Average goodwill and
intangible assets, net
(167,209 ) (182,794 ) Average
Tangible Common Equity (non-GAAP)
$ 577,683 $
536,023 Net income attributable to the Company
$ 58,871 $ 54,075 LESS: Dividends on Series D
preferred stock
(2,606 ) (2,606 ) Common net income
(non-GAAP)
56,265 51,469 ADD: Amortization of intangibles,
net of tax (35%)
2,781 3,081 Tangible common
net income (non-GAAP)
$ 59,046 $ 54,550
Return on Average Equity - (Annualized)
9.93 %
9.43 % Return on Average Common Equity - (Annualized) (non-GAAP)
10.10 % 9.57 % Return on Average Tangible Common
Equity - (Annualized) (non-GAAP)
13.67 % 13.61 %
Boston Private Financial Holdings,
Inc.
Selected Financial Data
(Unaudited)
(6)
The Company uses certain non-GAAP
financial measures, such as: pre-tax, pre-provision income, 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 income; 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)
September
30, 2017 June 30, 2017
March 31, 2017
December 31, 2016 September 30,
2016 Income before income taxes (GAAP)
$
27,980 $ 33,456 $ 21,549 $ 24,762 $ 28,351 ADD BACK:
Provision/ (credit) for loan losses
(432 ) (6,114 )
(181 ) (1,128 ) (138 ) Pre-tax, pre-provision income (non-GAAP)
$ 27,548 $ 27,342 $ 21,368 $ 23,634 $ 28,213
Total operating expense (GAAP)
$ 69,346 $ 67,821 $
68,780 $ 71,843 $ 61,670 Less: Amortization of intangibles
1,426 1,426 1,426 1,542 1,568 Less: Goodwill impairment
— — — 9,528 — Total
operating expense (excluding amortization of intangibles, goodwill
impairment, and restructuring) (non-GAAP)
$ 67,920 $
66,395 $ 67,354 $ 60,773 $ 60,102 Net interest income
$ 56,627 $ 57,145 $ 53,642 $ 51,519 $ 49,871 Total
core fees and income
39,067 37,226 36,320 38,499 37,896
Total other income
1,200 792 186 5,459 2,116 FTE income
2,899 2,923 2,820 2,754 2,523
Total revenue (FTE basis)
$ 99,793 $ 98,086 $
92,968 $ 98,231 $ 92,406 Efficiency Ratio (GAAP)
71.57
% 71.27 % 76.30 % 75.25 % 68.61 % Efficiency Ratio, FTE
Basis excluding amortization of intangibles, goodwill impairment,
and restructuring (non-GAAP)
68.06 % 67.69 % 72.45 %
61.87 % 65.04 %
Nine Months Ended (In
thousands)
September 30, 2017
September 30, 2016 Income before income taxes (GAAP)
$ 82,985 $ 76,444 ADD BACK: Provision/ (credit) for
loan losses
(6,727 ) (5,806 ) Pre-tax, pre-provision
income (non-GAAP)
$ 76,258 $ 70,638 Total
operating expense (GAAP)
$ 205,947 $ 193,110 Less:
Amortization of intangibles
4,278 4,740 Less: Restructuring
— 2,017 Total operating expense (excluding
amortization of intangibles, goodwill impairment, and
restructuring) (non-GAAP)
$ 201,669 $ 186,353
Net interest income
$ 167,414 $ 148,919 Total core
fees and income
112,613 113,189 Total other income
2,178 1,640 FTE income
8,642 7,376
Total revenue (FTE basis)
$ 290,847 $ 271,124
Efficiency Ratio (GAAP)
72.98 % 73.22 % Efficiency
Ratio, FTE Basis excluding amortization of intangibles, goodwill
impairment, and restructuring (non-GAAP)
69.34 %
68.73 %
(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)
September 30, 2017
June 30, 2017 March 31,
2017 December 31, 2016
September 30, 2016 Net income attributable to
the Company (GAAP)
$ 19,803 $ 23,406 $ 15,662 $
17,552 $ 19,636 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)
$ 19,803 $ 23,406 $ 15,662 $ 21,885 $ 19,636
Net Income Attributable to the Common Shareholders, treasury stock
method (GAAP)
$ 18,657 $ 22,829 $ 14,496 $ 15,755 $
18,630 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)
$ 18,657 $
22,829 $ 14,496 $ 20,088 $ 18,630 Weighted average diluted
shares outstanding (3)
84,888,311 84,741,680 84,560,918
83,438,137 83,562,283 Diluted Total Earnings per Share
(GAAP)
$ 0.22 $ 0.27 $ 0.17 $ 0.19 $ 0.22 Diluted
Total Earnings per Share, excluding notable items (non-GAAP)
$ 0.22 $ 0.27 $ 0.17 $ 0.24 $ 0.22
(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, also
referred to as core net interest margin, 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)
September
30, 2017 June 30, 2017
March 31, 2017
December 31, 2016 September 30,
2016 Net interest income (GAAP basis)
$ 56,627
$ 57,145 $ 53,642 $ 51,519 $ 49,871 ADD: FTE income
2,899
2,923 2,820 2,754 2,523 Net
interest income, FTE basis
59,526 60,068 56,462 54,273
52,394 LESS: Interest recovered on previously nonaccrual loans
133 1,971 299 365 343 Net
interest income, FTE basis, excluding interest recovered on
previously nonaccrual loans (non-GAAP)
59,393 58,097
56,163 53,908 52,051 Net
Interest Margin (FTE basis)
3.02 % 3.07 % 2.94 % 2.88
% 2.88 % Net Interest Margin, FTE basis, excluding interest
recovered on previously nonaccrual loans (non-GAAP) - also referred
to as core Net Interest Margin
3.02 % 2.97 % 2.92 %
2.86 % 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)
At September 30, 2017 June 30, 2017, March
31, 2017, December 31, 2016, and September 30, 2016, 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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20171018006473/en/
Boston Private Financial Holdings, Inc.Adam Bromley(617)
912-4386abromley@bostonprivate.com
Boston Private Financial (NASDAQ:BPFH)
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