BPFH Boston Private Financial Holdings Inc

Third Quarter 2019 Highlights include:

• Net income was $20.0 million, or $0.24 per diluted share
• Return on average common equity (non-GAAP) was 9.8%
• Return on average tangible common equity (non-GAAP) was 11.0%
• Average total loans were $7.0 billion, a 4% increase year-over-year
• Average total deposits were $6.7 billion, a 1% decrease year-over-year
• Total assets under management/advisory (“AUM”) were $16.2 billion, a decrease of 8% year-over-year
• Total net flows were negative $137 million, of which negative $100 million were attributable to the Wealth Management & Trust segment
• Completed the integration of wholly-owned affiliates Boston Private Wealth LLC and KLS Professional Advisors Group, LLC ("KLS")

Boston Private Financial Holdings, Inc. (NASDAQ: BPFH) (the “Company” or “BPFH”) today reported third quarter 2019 Net income attributable to the Company of $20.0 million, compared to $19.4 million for the second quarter of 2019 and $18.0 million for the third quarter of 2018. Third quarter 2019 Diluted earnings per share were $0.24, compared to $0.22 in the second quarter of 2019 and $0.20 in the third quarter of 2018.

"Our team is making strong progress building a platform to support the growth initiatives we shared during our Investor Day," said Anthony DeChellis, CEO of Boston Private. "Our third quarter results reflect disciplined expense management in a challenging net interest income environment, as we position our businesses to be more cohesive and competitive.

"This quarter, we welcomed John Longley as the President of the Western Region and Pat Dwyer as the Head of Strategic Business Development to help drive growth across the company. We also completed the formal integration of Boston Private Wealth and KLS Professional Advisors, a key milestone towards simplifying the BPFH business model and scaling Boston Private's ability to compete at the highest levels of the financial services industry."

Summary Financial Results - Reported

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% Change

($ in millions, except for per share data)

 

3Q19

 

2Q19

 

3Q18

 

LQ

 

Y/Y

Net income

 

$20.0

 

$19.4

 

$18.0

 

3%

 

11%

Diluted earnings per share

 

$0.24

 

$0.22

 

$0.20

 

9%

 

20%

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Financial Measures:

 

 

 

 

 

 

 

 

 

 

Pre-tax, pre-provision income

 

$25.7

 

$26.2

 

$23.4

 

(2)%

 

10%

Return on average common equity ("ROACE")

 

9.8%

 

9.8%

 

9.7%

 

 

 

 

Return on average tangible common equity ("ROATCE")

 

11.0%

 

11.1%

 

11.4%

 

 

 

 

The Company's reported financial results increased year-over-year primarily as a result of a $5.8 million restructuring expense during the third quarter of 2018.

In addition to presenting the Company’s results in conformity with GAAP, the 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. For additional information on non-GAAP measures, see page 6. A reconciliation of GAAP to non-GAAP results can be found beginning on page 17.

Summary Financial Results - Operating Basis (non-GAAP)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% Change

($ in millions, except for per share data)

 

3Q19

 

2Q19

 

3Q181

 

LQ

 

Y/Y

Net income

 

$20.0

 

$19.4

 

$22.5

 

3%

 

(11)%

Diluted earnings per share

 

$0.24

 

$0.22

 

$0.25

 

9%

 

(5)%

 

 

 

 

 

 

 

 

 

 

 

Pre-tax, pre-provision income

 

$25.7

 

$26.2

 

$29.2

 

(2)%

 

(12)%

Return on average common equity

 

9.8%

 

9.8%

 

12.1%

 

 

 

 

Return on average tangible common equity

 

11.0%

 

11.1%

 

14.2%

 

 

 

 

1 3Q18 results adjusted to exclude the impact of $5.8 million restructuring expense, net of $1.2 million tax effect

Divested Affiliates

The Company completed the sale of Bingham, Osborn & Scarborough LLC ("BOS") during 2018. Financial results from BOS remain consolidated in the Company's financial results through the closing date of December 3, 2018.

For presentation purposes, BOS's AUM is excluded from AUM amounts, but is included in the calculation of Core fees and income. The discussion below includes non-GAAP measures that exclude the contributions from BOS in order to enhance comparability of trends in the core business.

Net Interest Income and Margin

 

 

 

 

 

 

 

 

 

 

 

 

% Change

($ in millions)

 

3Q19

 

2Q19

 

3Q18

 

LQ

 

Y/Y

Net interest income

 

$56.2

 

$57.5

 

$59.6

 

(2)%

 

(6)%

Less: Interest recovered on previous nonaccrual loans

 

0.2

 

—

 

1.0

 

nm

 

nm

Core net interest income (non-GAAP)

 

$56.0

 

$57.5

 

$58.7

 

(3)%

 

(5)%

 

 

 

 

 

 

 

 

 

 

 

Net interest margin

 

2.72

%

 

2.78

%

 

2.90

%

 

 

 

 

Core net interest margin (non-GAAP)

 

2.71

%

 

2.78

%

 

2.90

%

 

 

 

 

nm = not meaningful

 

 

 

 

 

 

 

 

 

 

Net interest income for the third quarter of 2019 was $56.2 million, a decrease of 2% linked quarter and 6% year-over-year. Core net interest income, which excludes interest recovered on previous nonaccrual loans, decreased 3% linked quarter and 5% year-over-year. The linked quarter decrease was primarily driven by the repricing of variable rate loans and lower interest-earning asset volumes, partially offset by lower borrowing volumes.

The Company’s Core net interest margin, which excludes interest recovered on previous nonaccrual loans, decreased 7 basis points on a linked quarter basis to 2.71%, primarily driven by lower interest-earning asset yields and higher deposit costs, partially offset by lower borrowing volumes.

Noninterest Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% Change

($ in millions)

 

3Q19

 

2Q19

 

3Q18

 

LQ

 

Y/Y

Wealth management and trust fees

 

$19.1

 

$18.9

 

$25.5

 

1%

 

(25)%

Investment management fees

 

2.5

 

2.5

 

3.2

 

2%

 

(23)%

Private banking fees 2

 

3.6

 

2.9

 

2.8

 

23%

 

26%

Total core fees and income

 

$25.2

 

$24.3

 

$31.6

 

4%

 

(20)%

Total other income

 

—

 

0.1

 

0.7

 

(100)%

 

(100)%

Total noninterest income

 

$25.1

 

$24.4

 

$32.3

 

3%

 

(22)%

 

 

 

 

 

 

 

 

 

 

 

Memo: Excluding BOS

 

 

 

 

Wealth management and trust fees (non-GAAP) 3

 

$19.1

 

$18.9

 

$19.6

 

1%

 

(3)%

Investment management fees

 

2.5

 

2.5

 

3.2

 

2%

 

(23)%

Private banking fees

 

3.6

 

2.9

 

2.8

 

23%

 

26%

Total core fees and income (non-GAAP) 3

 

$25.2

 

$24.3

 

$25.7

 

4%

 

(2)%

Total other income

 

—

 

0.1

 

0.7

 

(100)%

 

(100)%

Total noninterest income (non-GAAP) 3

 

$25.1

 

$24.4

 

$26.4

 

3%

 

(5)%

2 Private banking fees includes Other banking fee income and Gain/ (loss) on sale of loans, net 3 Excludes BOS revenue of $5.9 million in 3Q18

As previously announced, KLS and Boston Private Wealth LLC now operate as a single registered investment advisor ("RIA"). Revenue from the RIA, the legacy affiliates, and the trust operations of Boston Private Bank & Trust Company is included as Wealth management and trust fees during the current period and all prior periods.

Total core fees and income for the third quarter of 2019 was $25.2 million, a 4% increase linked quarter, primarily driven by a gain on sale of loans associated with the sale of approximately $90 million of mortgage loans. The 20% decline year-over-year was primarily driven by the divestiture of BOS.

Excluding BOS, Total core fees and income (non-GAAP) decreased 2% year-over-year, primarily driven by lower Investment Management fees and Wealth management and trust fees as a result of negative net flows.

Assets Under Management / Advisory

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% Change

($ in millions)

 

3Q19

 

2Q19

 

3Q18

 

LQ

 

Y/Y

Wealth Management and Trust

 

$14,695

 

$14,649

 

$15,598

 

—%

 

(6)%

Other 4

 

1,533

 

1,550

 

2,125

 

(1)%

 

(28)%

Total assets under management / advisory

 

$16,228

 

$16,199

 

$17,723

 

—%

 

(8)%

4 Includes results from Dalton, Greiner, Hartman, Maher & Co, LLC ("DGHM")

Total assets under management / advisory were $16.2 billion at the end of the third quarter of 2019, flat linked quarter and a decrease of 8% year-over-year. The linked quarter comparison was impacted by positive market action partially offset by negative net flows, while the year-over-year decrease was primarily driven by negative net flows in excess of positive market action.

Total net flows were negative $137 million during the third quarter of 2019, of which $100 million were attributable to the Wealth Management & Trust segment.

Noninterest Expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% Change

($ in millions)

 

3Q19

 

2Q19

 

3Q18

 

LQ

 

Y/Y

Salaries and employee benefits

 

$31.7

 

$32.7

 

$38.9

 

(3)%

 

(19)%

Occupancy and equipment

 

8.3

 

7.9

 

8.2

 

5%

 

1%

Professional services

 

4.4

 

3.3

 

2.9

 

34%

 

54%

Marketing and business development

 

1.4

 

1.9

 

1.7

 

(27)%

 

(18)%

Information systems

 

5.2

 

5.1

 

6.2

 

1%

 

(17)%

Amortization of intangibles

 

0.7

 

0.7

 

0.8

 

—%

 

(11)%

FDIC insurance

 

0.1

 

0.6

 

0.7

 

(90)%

 

(91)%

Restructuring

 

—

 

—

 

5.8

 

—%

 

(100)%

Other

 

3.9

 

3.5

 

3.4

 

11%

 

12%

Total noninterest expense

 

$55.5

 

$55.7

 

$68.6

 

—%

 

(19)%

 

 

 

 

 

 

 

 

 

 

 

Memo: Excluding Notable Items5 and BOS

 

 

 

 

 

 

 

 

 

 

Restructuring

 

—

 

—

 

5.8

 

—%

 

(100)%

BOS noninterest expense

 

—

 

—

 

4.0

 

—%

 

(100)%

Total noninterest expense (non-GAAP)

 

$55.5

 

$55.7

 

$58.8

 

—%

 

(6)%

5 "Notable Items" include a $5.8 million restructuring expense in 3Q18

Total noninterest expense was flat linked quarter as lower salaries and employee benefits expense, marketing and business development expense, and an FDIC insurance assessment credit offset higher professional services expense and higher occupancy and equipment expense.

Excluding Notable Items and BOS, Total noninterest expense (non-GAAP) for the third quarter of 2019 was $55.5 million, flat linked quarter and down 6% year-over-year. The year-over-year decline was primarily attributable to efficiency initiatives primarily impacting compensation and technology.

Income Tax Expense

The Company's effective tax rate for the third quarter of 2019 was 21.6%.

Loans and Deposits - QTD Averages

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% Change

($ in millions)

 

3Q19

 

2Q19

 

3Q18

 

LQ

 

Y/Y

Commercial and industrial

 

$1,102

 

$1,092

 

$999

 

1%

 

10%

Commercial real estate

 

2,518

 

2,507

 

2,475

 

—%

 

2%

Construction and land

 

196

 

203

 

179

 

(3)%

 

9%

Residential

 

3,016

 

3,009

 

2,837

 

—%

 

6%

Home equity

 

89

 

91

 

94

 

(3)%

 

(5)%

Other consumer

 

128

 

125

 

163

 

3%

 

(22)%

Total loans

 

$7,049

 

$7,026

 

$6,747

 

—%

 

4%

 

 

 

 

 

 

 

 

 

 

 

Non-interest bearing deposits

 

1,953

 

1,927

 

2,064

 

1%

 

(5)%

Interest bearing deposits

 

4,705

 

4,664

 

4,668

 

1%

 

1%

Total deposits

 

$6,658

 

$6,591

 

$6,732

 

1%

 

(1)%

 

 

 

 

 

 

 

 

 

 

 

Non-interest bearing deposits as a % of Total deposits

 

29%

 

29%

 

31%

 

 

 

 

 

Average total loans in the third quarter of 2019 increased 4% year-over-year, primarily driven by increases in Residential loans and Commercial and industrial loans. End of period residential loans declined $62 million linked quarter to $3.0 billion following a loan sale of approximately $90 million that was completed in September of 2019.

Average total deposits decreased 1% year-over-year, primarily driven by a decline in demand deposit accounts, partially offset by growth in money market accounts and certificates of deposits.

The cost of total deposits was 0.92%, an increase of 4 basis points linked quarter and 24 basis points year-over-year.

Provision and Asset Quality

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in millions)

 

3Q19

 

2Q19

 

1Q19

 

4Q18

 

3Q18

Provision/ (credit) for loan loss

 

$0.2

 

$1.4

 

$(1.4)

 

$0.1

 

$(0.9)

Total criticized and classified loans

 

139.0

 

141.7

 

141.3

 

146.6

 

134.7

Total nonaccrual loans

 

17.6

 

17.2

 

12.0

 

14.1

 

12.1

Total loans 30-89 days past due and accruing

 

4.2

 

2.4

 

17.7

 

22.3

 

11.6

Total net loans (charged-off)/ recovered

 

0.1

 

(0.1)

 

(0.1)

 

1.7

 

1.0

 

 

 

 

 

 

 

 

 

 

 

Ratios:

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses as a % of Total loans

 

1.07%

 

1.06%

 

1.07%

 

1.09%

 

1.09%

Nonaccrual loans as a % of Total loans

 

0.25%

 

0.24%

 

0.17%

 

0.20%

 

0.18%

The Company recorded a provision expense of $0.2 million for the third quarter of 2019, compared to a provision expense of $1.4 million for the second quarter of 2019 and a provision credit of $0.9 million in the third quarter of 2018. The provision expense in the third quarter of 2019 was primarily driven by required reserves for criticized and classified loans, partially offset by lower reserves for pass-rated loans.

Total criticized loans as of September 30, 2019 was $139.0 million, a 2% decline linked quarter and an increase of 3% year-over-year. Total nonaccrual loans as of September 30, 2019 was $17.6 million, or 25 basis points of Total loans, compared to $17.2 million, or 24 basis points of total loans as of June 30, 2019, and $12.1 million, or 18 basis points of Total loans as of September 30, 2018.

Capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in millions, except for per share data)

 

3Q19

 

2Q19

 

1Q19

 

4Q18

 

3Q18

Tangible common equity/ Tangible assets (non-GAAP)

 

8.6%

 

8.4%

 

8.3%

 

8.1%

 

7.8%

Tangible book value per share (non-GAAP)

 

$8.90

 

$8.71

 

$8.47

 

$8.18

 

$7.67

 

 

 

 

 

 

 

 

 

 

 

Regulatory Capital Ratios: 6

 

 

 

 

 

 

 

 

 

 

Tier 1 common equity

 

11.2%

 

11.2%

 

11.4%

 

11.4%

 

11.1%

Total risk-based capital

 

13.9%

 

13.9%

 

14.2%

 

14.3%

 

14.1%

Tier 1 risk-based capital

 

12.8%

 

12.7%

 

13.0%

 

13.0%

 

12.8%

Tier 1 leverage capital

 

9.7%

 

9.6%

 

9.7%

 

9.5%

 

9.2%

 

 

 

 

 

 

 

 

 

 

 

Common Equity Repurchase Program:

 

 

 

 

 

 

 

 

 

 

Total shares of common stock repurchased

 

678,165

 

—

 

—

 

1,505,521

 

137,144

Average price paid per share of common stock

 

$10.61

 

—

 

—

 

$12.02

 

$13.89

Aggregate repurchases of common equity ($ in millions)

 

$7.2

 

—

 

—

 

$18.1

 

$1.9

6 Current quarter information is presented based on estimated data.

During the third quarter of 2019, the Company implemented a $20 million share repurchase program and repurchased 678,165 shares of common stock at an average cost of $10.61 per share. $12.8 million remains available to be repurchased under the current program.

Tangible book value per share as of September 30, 2019 increased 2% linked quarter and 16% year-over-year to $8.90. The linked quarter increase in Tangible book value per share was primarily driven by increased retained earnings and higher accumulated other comprehensive income related to unrealized securities gains, partially offset by common share repurchases.

EPS Calculation

For calculation of income for EPS, third quarter 2019 Net income attributable to the common shareholders was positively impacted by $0.3 million related to the change in value of Redeemable noncontrolling interests (“RNCI”).

Dividend Payments

Concurrent with the release of third quarter 2019 earnings, the Board of Directors of the Company declared a cash dividend payable to common shareholders of $0.12 per share. The record date for this dividend is November 8, 2019, and the payment date is November 22, 2019.

Non-GAAP Financial Measures

The 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: return on average common equity; return on average tangible common equity; pre-tax, pre-provision income; net interest income and net interest margin excluding interest recovered on previous nonaccrual loans, also referred to as core net interest income, and core net interest margin, respectively; tangible common equity / tangible assets, total noninterest expense excluding intangibles and restructuring, if any; the efficiency ratio excluding amortization and intangibles, and restructuring, if any; net income attributable to the Company excluding notable items; net income attributable to the common shareholders, treasury stock method, excluding notable items; diluted earnings per share excluding notable items; operating basis total revenue; operating basis total noninterest expenses

A detailed reconciliation table of the Company’s GAAP to non-GAAP measures is included in the tables of this release and beginning on page 17 of the attached financial statements.

Conference Call

Management will hold a conference call at 8:00 a.m. Eastern Time on Friday, October 25, 2019, to discuss the financial results, business highlights and outlook. To access the call:

Dial In #: (888) 317-6003

Elite Entry Number: 9751347

Replay Information:

Available from October 25, 2019 at 12:00 p.m Eastern Time until November 1, 2019

Dial In #: (877) 344-7529

Conference Number: 10135524

The call will be simultaneously webcast and may be accessed on www.bostonprivate.com.

About Boston Private

Boston Private Financial Holdings, Inc. is a national financial services organization that owns Wealth Management, Trust, and Commercial and Private Banking affiliates with offices in Boston, New York, Los Angeles, San Francisco, San Jose, and Florida. The Company has total assets of greater than $8 billion, and manages over $16 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 Statements

Certain statements in this press release that are not historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties. These statements include, among others, statements regarding our strategy, evaluations of future interest rate trends and liquidity, prospects for growth in assets, and prospects for overall results over the long term. You should not place undue reliance on our forward-looking statements. You should exercise caution in interpreting and relying on forward-looking statements because they are subject to significant risks, uncertainties and other factors which are, in some cases, beyond the Company’s control. Forward-looking statements are based on the current assumptions and beliefs of management and are only expectations of future results. The Company’s actual results could differ materially from those projected in the forward-looking statements as a result of, among other factors, adverse conditions in the capital and debt markets and the impact of such conditions on the Company’s business 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.

BOSTON PRIVATE FINANCIAL HOLDINGS, INC.

Consolidated Balance Sheet

Unaudited ($ in thousands, except share and per share data)

 

 

 

 

 

 

 

 

 

 

3Q19

 

2Q19

 

1Q19

 

4Q18

 

3Q18

ASSETS:

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

78,010

 

 

$

65,756

 

 

$

96,211

 

 

$

127,259

 

 

$

92,634

 

Investment securities available-for-sale

935,538

 

 

966,731

 

 

981,951

 

 

994,065

 

 

1,056,261

 

Investment securities held-to-maturity

51,379

 

 

54,482

 

 

67,548

 

 

70,438

 

 

75,468

 

Equity securities at fair value

21,780

 

 

19,092

 

 

7,491

 

 

14,228

 

 

7,079

 

Stock in Federal Home Loan Bank and Federal Reserve Bank

47,756

 

 

64,453

 

 

47,053

 

 

49,263

 

 

48,727

 

Loans held for sale

6,658

 

 

3,640

 

 

280

 

 

2,812

 

 

3,344

 

Loans

7,067,151

 

 

7,080,260

 

 

6,926,968

 

 

6,893,158

 

 

6,720,420

 

Less: Allowance for loan losses

75,359

 

 

75,067

 

 

73,814

 

 

75,312

 

 

73,500

 

Loans, net of allowance for loan losses

6,991,792

 

 

7,005,193

 

 

6,853,154

 

 

6,817,846

 

 

6,646,920

 

Other real estate owned (“OREO”)

—

 

 

—

 

 

—

 

 

401

 

 

108

 

Premises and equipment, net

42,658

 

 

40,244

 

 

42,938

 

 

45,412

 

 

47,399

 

Goodwill 7

57,607

 

 

57,607

 

 

57,607

 

 

57,607

 

 

75,598

 

Intangible assets, net 7

10,622

 

 

10,884

 

 

11,555

 

 

12,227

 

 

13,834

 

Accrued interest receivable

24,851

 

 

26,411

 

 

25,935

 

 

24,366

 

 

24,641

 

Deferred income taxes, net

15,704

 

 

17,183

 

 

22,844

 

 

26,638

 

 

27,833

 

Right-of-use assets

107,045

 

 

110,880

 

 

104,644

 

 

—

 

 

—

 

Other assets 7

299,544

 

 

270,317

 

 

252,932

 

 

252,063

 

 

255,994

 

TOTAL ASSETS

$

8,690,944

 

 

$

8,712,873

 

 

$

8,572,143

 

 

$

8,494,625

 

 

$

8,375,840

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES:

 

 

 

 

 

 

 

 

 

Deposits

$

6,658,242

 

 

$

6,437,963

 

 

$

6,779,845

 

 

$

6,781,170

 

 

$

6,768,723

 

Securities sold under agreements to repurchase

48,860

 

 

62,372

 

 

58,329

 

 

36,928

 

 

39,453

 

Federal funds purchased

230,000

 

 

135,000

 

 

—

 

 

250,000

 

 

120,000

 

Federal Home Loan Bank borrowings

570,904

 

 

920,068

 

 

615,070

 

 

420,144

 

 

441,836

 

Junior subordinated debentures

106,363

 

 

106,363

 

 

106,363

 

 

106,363

 

 

106,363

 

Lease liabilities

122,799

 

 

126,740

 

 

120,162

 

 

—

 

 

—

 

Other liabilities 7

143,607

 

 

124,370

 

 

112,893

 

 

143,540

 

 

149,770

 

TOTAL LIABILITIES

7,880,775

 

 

7,912,876

 

 

7,792,662

 

 

7,738,145

 

 

7,626,145

 

 

 

 

 

 

 

 

 

 

 

REDEEMABLE NONCONTROLLING INTEREST (“RNCI”)

1,481

 

 

1,786

 

 

662

 

 

2,526

 

 

11,686

 

SHAREHOLDERS' EQUITY:

 

 

 

 

 

 

 

 

 

Common stock, $1.00 par value; authorized: 170,000,000 shares

83,242

 

 

83,774

 

 

83,774

 

 

83,656

 

 

84,603

 

Additional paid-in capital

599,877

 

 

603,869

 

 

604,288

 

 

600,196

 

 

614,157

 

Retained earnings

116,210

 

 

106,443

 

 

97,155

 

 

87,821

 

 

64,618

 

Accumulated other comprehensive income/ (loss)

9,359

 

 

4,125

 

 

(6,398

)

 

(17,719

)

 

(27,578

)

TOTAL COMPANY'S SHAREHOLDERS' EQUITY

808,688

 

 

798,211

 

 

778,819

 

 

753,954

 

 

735,800

 

Noncontrolling interests

—

 

 

—

 

 

—

 

 

—

 

 

2,209

 

TOTAL SHAREHOLDERS' EQUITY

808,688

 

 

798,211

 

 

778,819

 

 

753,954

 

 

738,009

 

TOTAL LIABILITIES, RNCI, AND SHAREHOLDERS' EQUITY

$

8,690,944

 

 

$

8,712,873

 

 

$

8,572,143

 

 

$

8,494,625

 

 

$

8,375,840

 

 

 

 

 

 

 

 

 

 

 

7 On December 3, 2018, the Company completed the sale of its ownership interest in BOS to the management team of BOS for an upfront cash payment and an eight-year revenue sharing agreement with BOS. For regulatory purposes, the goodwill and intangible assets of BOS are included in consolidated calculations through the closing date.

BOSTON PRIVATE FINANCIAL HOLDINGS, INC.

Consolidated Income Statement

Unaudited ($ in thousands, except share and per share data)

 

 

3Q19

 

2Q19

 

1Q19

 

4Q18

 

3Q18

REVENUE:

 

Interest income

$

77,604

 

 

$

78,728

 

 

$

76,824

 

 

$

76,892

 

 

$

76,101

 

Interest expense

21,451

 

 

21,268

 

 

18,486

 

 

16,895

 

 

16,460

 

Net interest income

56,153

 

 

57,460

 

 

58,338

 

 

59,997

 

 

59,641

 

Provision/ (credit) for loan losses

167

 

 

1,363

 

 

(1,426

)

 

93

 

 

(949

)

Net interest income after provision/ (credit) for loan losses

55,986

 

 

56,097

 

 

59,764

 

 

59,904

 

 

60,590

 

 

 

 

 

 

 

 

 

 

 

Wealth management and trust fees 8

19,067

 

 

18,912

 

 

19,058

 

 

23,788

 

 

25,505

 

Investment management fees

2,496

 

 

2,455

 

 

2,650

 

 

2,831

 

 

3,245

 

Private banking fee income

2,658

 

 

2,867

 

 

2,499

 

 

2,033

 

 

2,775

 

Gain on sale of loans, net

934

 

 

58

 

 

73

 

 

39

 

 

67

 

Total core fees and income

25,155

 

 

24,292

 

 

24,280

 

 

28,691

 

 

31,592

 

Total other income

(29

)

 

88

 

 

968

 

 

17,154

 

 

722

 

TOTAL REVENUE 9

81,279

 

 

81,840

 

 

83,586

 

 

105,842

 

 

91,955

 

 

 

 

 

 

 

 

 

 

 

NONINTEREST EXPENSE:

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

31,684

 

 

32,706

 

 

35,726

 

 

36,007

 

 

38,944

 

Occupancy and equipment

8,260

 

 

7,852

 

 

8,348

 

 

7,975

 

 

8,164

 

Professional services

4,435

 

 

3,313

 

 

3,560

 

 

4,229

 

 

2,877

 

Marketing and business development

1,403

 

 

1,934

 

 

1,085

 

 

2,275

 

 

1,710

 

Information systems

5,169

 

 

5,137

 

 

5,860

 

 

6,296

 

 

6,233

 

Amortization of intangibles

671

 

 

672

 

 

672

 

 

680

 

 

750

 

FDIC insurance

59

 

 

585

 

 

660

 

 

739

 

 

674

 

Restructuring

—

 

 

—

 

 

1,646

 

 

2,065

 

 

5,763

 

Other

3,856

 

 

3,460

 

 

2,996

 

 

3,291

 

 

3,442

 

TOTAL NONINTEREST EXPENSE

55,537

 

 

55,659

 

 

60,553

 

 

63,557

 

 

68,557

 

 

 

 

 

 

 

 

 

 

 

INCOME BEFORE INCOME TAXES

25,575

 

 

24,818

 

 

24,459

 

 

42,192

 

 

24,347

 

Provision for income taxes

5,517

 

 

5,369

 

 

4,917

 

 

8,651

 

 

5,461

 

Net income from continuing operations

20,058

 

 

19,449

 

 

19,542

 

 

33,541

 

 

18,886

 

Net income from discontinued operations 10

—

 

 

—

 

 

—

 

 

306

 

 

—

 

Net income before attribution to noncontrolling interests

20,058

 

 

19,449

 

 

19,542

 

 

33,847

 

 

18,886

 

Less: Net income attributable to noncontrolling interests

96

 

 

69

 

 

100

 

 

545

 

 

924

 

NET INCOME ATTRIBUTABLE TO THE COMPANY

$

19,962

 

 

$

19,380

 

 

$

19,442

 

 

$

33,302

 

 

$

17,962

 

 

 

 

 

 

 

 

 

 

 

Adjustments, treasury stock method 11

304

 

 

(816

)

 

1,557

 

 

2,694

 

 

(829

)

NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS

$

20,266

 

 

$

18,564

 

 

$

20,999

 

 

$

35,996

 

 

$

17,133

 

 

 

 

 

 

 

 

 

 

 

COMMON SHARE DATA:

 

 

 

 

 

 

 

 

 

Weighted average basic shares outstanding

83,631,403

 

 

83,565,780

 

 

83,285,095

 

 

83,750,785

 

 

84,017,284

 

Weighted average diluted shares outstanding 12

83,956,708

 

 

84,048,972

 

 

84,010,450

 

 

84,863,779

 

 

85,498,568

 

Diluted total earnings per share

$

0.24

 

 

$

0.22

 

 

$

0.25

 

 

$

0.42

 

 

$

0.20

 

 

 

 

 

 

 

 

 

 

 

8 Wealth management and trust fees consists of revenue from Boston Private Wealth LLC, KLS Professional Advisors, BOS, and the trust operations of Boston Private Bank & Trust Company

 

9 Total revenue is the sum of Net interest income, Total core fees and income, and Total other income.

 

10 Net income from discontinued operations consists of contingent payments, net of expenses, related to a divested affiliate, Westfield Capital Management Company, LLC. The Company received its final contingent payment in the first quarter of 2018 related to this affiliate and a tax benefit related to deferred taxes in the fourth quarter of 2018

 

11 Adjustments to Net income attributable to the Company to arrive at Net income attributable to common shareholders, treasury stock method, as presented in these tables, include decrease/ (increase) in Noncontrolling interests redemption value.

 

12 For a description of the Company's policies regarding Diluted earnings per share, please refer to 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, 2018.

BOSTON PRIVATE FINANCIAL HOLDINGS, INC.

Consolidated Income Statement

Unaudited ($ in thousands, except share and per share data)

 

 

 

 

 

 

Nine months ended September 30,

 

 

2019

 

2018

REVENUE:

 

 

Interest income

 

$

233,156

 

 

$

216,012

 

Interest expense

 

61,205

 

 

41,443

 

Net interest income

 

171,951

 

 

174,569

 

Provision/ (credit) for loan losses

 

104

 

 

(2,291

)

Net interest income after provision/ (credit) for loan losses

 

171,847

 

 

176,860

 

 

 

 

 

 

Wealth management and trust fees 8

 

57,037

 

 

76,030

 

Investment management fees

 

7,601

 

 

18,897

 

Private banking fee income

 

8,024

 

 

7,793

 

Gain on sale of loans, net

 

1,065

 

 

204

 

Total core fees and income

 

73,727

 

 

102,924

 

Total other income

 

1,027

 

 

1,228

 

TOTAL REVENUE 9

 

246,705

 

 

278,721

 

 

 

 

 

 

NONINTEREST EXPENSE:

 

 

 

 

Salaries and employee benefits

 

100,116

 

 

125,461

 

Occupancy and equipment

 

24,460

 

 

24,141

 

Professional services

 

11,308

 

 

8,926

 

Marketing and business development

 

4,422

 

 

5,373

 

Information systems

 

16,166

 

 

18,889

 

Amortization of intangibles

 

2,015

 

 

2,249

 

FDIC insurance

 

1,304

 

 

2,126

 

Restructuring

 

1,646

 

 

5,763

 

Other

 

10,312

 

 

10,870

 

TOTAL NONINTEREST EXPENSE

 

171,749

 

 

203,798

 

 

 

 

 

 

INCOME BEFORE INCOME TAXES

 

74,852

 

 

77,214

 

Income tax expense

 

15,803

 

 

28,886

 

Net income from continuing operations

 

59,049

 

 

48,328

 

Net income from discontinued operations 10

 

—

 

 

1,696

 

Net income before attribution to noncontrolling interests

 

59,049

 

 

50,024

 

Less: Net income attributable to noncontrolling interests

 

265

 

 

2,942

 

NET INCOME ATTRIBUTABLE TO THE COMPANY

 

$

58,784

 

 

$

47,082

 

 

 

 

 

 

Adjustments, treasury stock method 11

 

1,045

 

 

(4,376

)

NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS

 

$

59,829

 

 

$

42,706

 

 

 

 

 

 

COMMON SHARE DATA

 

 

 

 

Weighted average basic shares outstanding

 

83,495,361

 

 

83,544,754

 

Weighted average diluted shares outstanding 12

 

84,003,281

 

 

85,254,295

 

Diluted total earnings per share

 

$

0.71

 

 

$

0.50

 

 

 

 

 

 

8 Wealth management and trust fees consists of revenue from Boston Private Wealth LLC, KLS Professional Advisors, BOS, and the trust operations of Boston Private Bank & Trust Company

 

9 Total revenue is the sum of Net interest income, Total core fees and income, and Total other income.

 

10 Net income from discontinued operations consists of contingent payments, net of expenses, related to a divested affiliate, Westfield Capital Management Company, LLC. The Company received its final contingent payment in the first quarter of 2018 related to this affiliate and a tax benefit related to deferred taxes in the fourth quarter of 2018

 

11 Adjustments to Net income attributable to the Company to arrive at Net income attributable to common shareholders, treasury stock method, as presented in these tables, include decrease/ (increase) in Noncontrolling interests redemption value and dividends paid on preferred stock, if any, including deemed dividends on redemption of the 6.95% non-cumulative perpetual preferred stock, Series D (“the Series D preferred stock”), if any. On June 15, 2018, the Company redeemed all $50 million of the outstanding Series D preferred stock.

 

12 For a description of the Company's policies regarding Diluted earnings per share, please refer to 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, 2018.

BOSTON PRIVATE FINANCIAL HOLDINGS, INC.

Consolidated Financial Highlights

Unaudited ($ in thousands, except share and per share data)

 

 

 

 

 

 

 

 

 

 

3Q19

 

2Q19

 

1Q19

 

4Q18

 

3Q18

KEY STATISTICS:

 

 

 

 

 

 

 

 

 

Return on average assets (non-GAAP) 13

0.91

%

 

0.90

%

 

0.93

%

 

1.56

%

 

0.84

%

ROACE (non-GAAP) 13

9.80

%

 

9.83

%

 

10.29

%

 

17.87

%

 

9.67

%

ROATCE (non-GAAP) 13

10.99

%

 

11.06

%

 

11.63

%

 

20.46

%

 

11.37

%

Efficiency ratio (non-GAAP) 13

67.5

%

 

67.2

%

 

69.7

%

 

57.1

%

 

67.0

%

Noninterest income to total revenue

30.9

%

 

29.8

%

 

30.2

%

 

43.3

%

 

35.1

%

 

 

 

 

 

 

 

 

 

 

Net interest margin

2.72

%

 

2.78

%

 

2.90

%

 

2.94

%

 

2.90

%

Average loan to average deposit ratio

105.9

%

 

106.6

%

 

101.6

%

 

98.0

%

 

100.2

%

Cost of total deposits

0.92

%

 

0.88

%

 

0.84

%

 

0.77

%

 

0.68

%

Cost of interest-bearing deposits

1.31

%

 

1.25

%

 

1.19

%

 

1.11

%

 

0.98

%

Cost of total funding

1.12

%

 

1.11

%

 

1.00

%

 

0.89

%

 

0.86

%

 

 

 

 

 

 

 

 

 

 

Allowance for Loan Loss / Total Loans

1.07

%

 

1.06

%

 

1.07

%

 

1.09

%

 

1.09

%

Nonperforming loans / Total Loans

0.25

%

 

0.24

%

 

0.17

%

 

0.20

%

 

0.18

%

Net (charge-offs) / recoveries / Total loans 13

0.01

%

 

(0.01

)%

 

—

%

 

0.10

%

 

0.06

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CAPITAL HIGHLIGHTS:

 

 

 

 

 

 

 

 

 

Tier 1 common equity 14

$

732,980

 

 

$

726,872

 

 

$

717,138

 

 

$

702,728

 

 

$

674,641

 

Tier 1 capital 14

$

833,431

 

 

$

827,299

 

 

$

817,600

 

 

$

803,311

 

 

$

776,328

 

Total capital 14

$

910,076

 

 

$

903,675

 

 

$

892,764

 

 

$

879,927

 

 

$

851,399

 

 

 

 

 

 

 

 

 

 

 

Risk-weighted assets ("RWA") 14

$

6,533,882

 

 

$

6,491,184

 

 

$

6,304,444

 

 

$

6,161,677

 

 

$

6,057,002

 

Average assets for leverage 14

$

8,588,358

 

 

$

8,617,803

 

 

$

8,447,143

 

 

$

8,416,195

 

 

$

8,436,411

 

 

 

 

 

 

 

 

 

 

 

TIer 1 common equity ratio 14

11.22

%

 

11.20

%

 

11.38

%

 

11.40

%

 

11.14

%

Tier 1 ratio 14

12.76

%

 

12.74

%

 

12.97

%

 

13.04

%

 

12.82

%

Total capital ratio 14

13.93

%

 

13.92

%

 

14.16

%

 

14.28

%

 

14.06

%

Leverage ratio 14

9.70

%

 

9.60

%

 

9.68

%

 

9.54

%

 

9.20

%

 

 

 

 

 

 

 

 

 

 

Total equity / Total assets

9.30

%

 

9.16

%

 

9.09

%

 

8.88

%

 

8.81

%

Tangible common equity / Tangible assets (non-GAAP)

8.59

%

 

8.44

%

 

8.35

%

 

8.12

%

 

7.83

%

 

 

 

 

 

 

 

 

 

 

Market price per share

$

11.66

 

 

$

12.07

 

 

$

10.96

 

 

$

10.57

 

 

$

13.65

 

End of period shares outstanding

83,241,952

 

83,774,335

 

83,773,650

 

83,655,651

 

84,602,519

Book value per common share

$

9.71

 

 

$

9.53

 

 

$

9.30

 

 

$

9.01

 

 

$

8.72

 

Tangible book value per share (non-GAAP)

$

8.90

 

 

$

8.71

 

 

$

8.47

 

 

$

8.18

 

 

$

7.67

 

 

 

 

 

 

 

 

 

 

 

Common Equity Repurchase Program:

 

 

 

 

 

 

 

 

 

Total shares of common stock repurchased

678,165

 

 

—

 

 

—

 

 

1,505,521

 

137,144

Average price paid per share of common stock

$

10.61

 

 

$

—

 

 

$

—

 

 

$

12.02

 

 

$

13.89

 

Aggregate repurchases of common equity ($ in millions)

$

7.2

 

 

$

—

 

 

$

—

 

 

$

18.1

 

 

$

1.9

 

 

 

 

 

 

 

 

 

 

 

13 Annualized

14 Current quarter capital highlights are presented based on estimated data.

BOSTON PRIVATE FINANCIAL HOLDINGS, INC.

Consolidated AUM and Balance Sheet - End of Period Balances

Unaudited ($ in thousands)

 

 

 

 

 

 

 

 

 

 

3Q19

 

2Q19

 

1Q19

 

4Q18

 

3Q18

 

 

 

 

 

 

 

 

 

 

ASSETS UNDER MANAGEMENT AND ADVISORY ("AUM"):

 

 

 

 

 

 

 

 

Wealth Management and Trust

$

14,695,000

 

 

$

14,649,000

 

 

$

14,564,000

 

 

$

14,206,000

 

 

$

15,598,000

 

Other

1,533,000

 

 

1,550,000

 

 

1,558,000

 

 

1,715,000

 

 

2,125,000

 

Total AUM, excluding BOS 15

16,228,000

 

 

16,199,000

 

 

16,122,000

 

 

15,921,000

 

 

17,723,000

 

AUM at BOS

—

 

 

—

 

 

—

 

 

—

 

 

4,714,000

 

Less: Inter-company relationship

—

 

 

—

 

 

—

 

 

—

 

 

(7,000

)

Total AUM

$

16,228,000

 

 

$

16,199,000

 

 

$

16,122,000

 

 

$

15,921,000

 

 

$

22,430,000

 

 

 

 

 

 

 

 

 

 

 

AUM Reconciliation:

 

 

 

 

 

 

 

 

 

Beginning balance

$

16,199,000

 

 

$

16,122,000

 

 

$

15,921,000

 

 

$

17,723,000

 

 

$

16,861,000

 

Net flows

(137,000

)

 

(269,000

)

 

(963,000

)

 

(143,000

)

 

260,000

 

Market

166,000

 

 

346,000

 

 

1,164,000

 

 

(1,659,000

)

 

602,000

 

Ending balance

$

16,228,000

 

 

$

16,199,000

 

 

$

16,122,000

 

 

$

15,921,000

 

 

$

17,723,000

 

 

 

 

 

 

 

 

 

 

 

AUM Net Flows:

 

 

 

 

 

 

 

 

 

Wealth Management & Trust

$

(100,000

)

 

$

(233,000

)

 

$

(580,000

)

 

$

(137,000

)

 

$

215,000

 

Other

(37,000

)

 

(36,000

)

 

(383,000

)

 

(6,000

)

 

45,000

 

Total Net flows

$

(137,000

)

 

$

(269,000

)

 

$

(963,000

)

 

$

(143,000

)

 

$

260,000

 

 

 

 

 

 

 

 

 

 

 

DEPOSITS:

 

 

 

 

 

 

 

 

 

Demand deposits (non-interest bearing)

$

1,947,363

 

 

$

1,854,091

 

 

$

2,016,838

 

 

$

1,951,274

 

 

$

2,001,275

 

NOW

598,048

 

 

563,130

 

 

605,852

 

 

626,685

 

 

568,148

 

Savings

68,059

 

 

68,036

 

 

68,102

 

 

73,834

 

 

72,967

 

Money market

3,366,623

 

 

3,228,608

 

 

3,302,244

 

 

3,338,892

 

 

3,363,062

 

Certificates of deposit

678,149

 

 

724,098

 

 

786,809

 

 

790,485

 

 

763,271

 

TOTAL DEPOSITS

$

6,658,242

 

 

$

6,437,963

 

 

$

6,779,845

 

 

$

6,781,170

 

 

$

6,768,723

 

 

 

 

 

 

 

 

 

 

 

LOANS:

 

 

 

 

 

 

 

 

 

Commercial and Industrial

$

695,029

 

 

$

656,186

 

 

$

615,370

 

 

$

623,037

 

 

$

583,214

 

Commercial tax exempt

448,488

 

 

450,307

 

 

449,492

 

 

451,671

 

 

438,807

 

Commercial real estate

2,533,346

 

 

2,530,556

 

 

2,439,048

 

 

2,395,692

 

 

2,399,080

 

Construction and land

209,741

 

 

200,378

 

 

210,618

 

 

240,306

 

 

197,524

 

Residential

2,964,042

 

 

3,025,758

 

 

2,993,132

 

 

2,948,973

 

 

2,862,879

 

Home Equity

84,432

 

 

89,930

 

 

88,620

 

 

90,421

 

 

93,390

 

Consumer

132,073

 

 

127,145

 

 

130,688

 

 

143,058

 

 

145,526

 

TOTAL LOANS

$

7,067,151

 

 

$

7,080,260

 

 

$

6,926,968

 

 

$

6,893,158

 

 

$

6,720,420

 

 

 

 

 

 

 

 

 

 

 

15 Assets under management and advisory have been reduced to exclude those assets managed or advised by BOS for periods when BOS was owned by the Company

BOSTON PRIVATE FINANCIAL HOLDINGS, INC.

Asset Quality

Unaudited ($ in thousands)

 

 

 

 

 

 

 

 

 

 

3Q19

 

2Q19

 

1Q19

 

4Q18

 

3Q18

CHARGE-OFFS:

 

 

 

 

 

 

 

 

 

Loan charge-offs

$

(185

)

 

$

(195

)

 

$

(564

)

 

$

(370

)

 

$

—

 

Loan recoveries

310

 

 

85

 

 

492

 

 

2,089

 

 

985

 

NET (CHARGE-OFFS) / RECOVERIES

$

125

 

 

$

(110

)

 

$

(72

)

 

$

1,719

 

 

$

985

 

Net charge-offs to average loans (annualized)

0.01

%

 

(0.01

)%

 

—

%

 

0.10

%

 

0.06

%

 

 

 

 

 

 

 

 

 

 

Net Charge-offs by Loan Type:

 

 

 

 

 

 

 

 

 

Commercial and industrial

$

95

 

 

$

(155

)

 

$

188

 

 

$

(77

)

 

$

153

 

Commercial real estate

27

 

 

30

 

 

189

 

 

1,394

 

 

820

 

Construction and land

—

 

 

—

 

 

—

 

 

—

 

 

—

 

Residential

—

 

 

—

 

 

100

 

 

402

 

 

—

 

Home Equity

6

 

 

—

 

 

(562

)

 

—

 

 

—

 

Consumer

(3

)

 

15

 

 

13

 

 

—

 

 

12

 

NET (CHARGE-OFFS) / RECOVERIES

$

125

 

 

$

(110

)

 

$

(72

)

 

$

1,719

 

 

$

985

 

 

 

 

 

 

 

 

 

 

 

NONPERFORMING LOAN DATA:

 

 

 

 

 

 

 

 

 

Special mention loans

$

58,133

 

 

$

70,677

 

 

$

86,787

 

 

$

78,528

 

 

$

67,406

 

 

 

 

 

 

 

 

 

 

 

Accruing classified loans 16

63,278

 

 

53,883

 

 

42,521

 

 

54,095

 

 

55,380

 

Nonaccrual loans

17,565

 

 

17,155

 

 

12,019

 

 

14,057

 

 

12,097

 

Total Classified

80,843

 

 

71,038

 

 

54,540

 

 

68,152

 

 

67,477

 

Criticized and Classified Loans

$

138,976

 

 

$

141,715

 

 

$

141,327

 

 

$

146,680

 

 

$

134,883

 

 

 

 

 

 

 

 

 

 

 

Loans 30-89 days past due and accruing 17

$

4,179

 

 

$

2,434

 

 

$

17,715

 

 

$

22,299

 

 

$

11,607

 

 

 

 

 

 

 

 

 

 

 

16 Accruing classified 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.

 

17 In addition to loans 30-89 days past due and accruing, at June 30, 2019, the Company had one loan totaling $0.9 million that was more than 90 days past due but still on accrual status. This loan originated in the New England region. The Company had no loans outstanding more than 90 days past due but still on accrual status in comparative periods.

BOSTON PRIVATE FINANCIAL HOLDINGS, INC.

 

 

 

 

 

 

 

 

 

Average Balances, Yields, and Rates

 

 

 

 

 

 

 

 

 

Unaudited ($ in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Average Balance

 

Interest Income/Expense

 

Average Yield/Rate

 

3Q19

2Q19

3Q18

 

3Q19

2Q19

3Q18

 

3Q19

2Q19

3Q18

INTEREST-EARNING ASSETS

 

 

 

 

 

 

 

 

 

 

 

Cash and investments:

 

 

 

 

 

 

 

 

 

 

 

Taxable investment securities

$

198,655

 

$

227,029

 

$

324,583

 

 

$

938

 

$

1,121

 

$

1,510

 

 

1.95

%

1.98

%

1.86

%

Non-taxable investment securities

305,108

 

304,309

 

297,710

 

 

1,924

 

1,901

 

1,779

 

 

2.52

%

2.50

%

2.39

%

Mortgage-backed securities

492,514

 

508,033

 

552,820

 

 

2,622

 

2,706

 

2,941

 

 

2.13

%

2.13

%

2.13

%

Short-term investments and other

101,958

 

130,363

 

204,814

 

 

1,084

 

1,057

 

1,617

 

 

4.06

%

3.23

%

3.11

%

Total cash and investments

1,098,235

 

1,169,734

 

1,379,927

 

 

6,568

 

6,785

 

7,847

 

 

2.39

%

2.32

%

2.27

%

Loans: 18

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

1,101,672

 

1,091,903

 

998,817

 

 

11,523

 

11,170

 

9,894

 

 

4.09

%

4.05

%

3.88

%

Commercial real estate

2,518,048

 

2,506,637

 

2,475,143

 

 

29,118

 

29,953

 

29,482

 

 

4.52

%

4.73

%

4.66

%

Construction and land

195,843

 

202,609

 

179,248

 

 

2,410

 

2,559

 

2,193

 

 

4.82

%

5.00

%

4.79

%

Residential

3,016,265

 

3,008,753

 

2,836,593

 

 

25,567

 

25,735

 

23,907

 

 

3.39

%

3.42

%

3.37

%

Home equity

89,068

 

91,384

 

94,050

 

 

1,121

 

1,146

 

1,089

 

 

4.99

%

5.03

%

4.59

%

Other consumer

127,987

 

124,778

 

163,224

 

 

1,297

 

1,380

 

1,689

 

 

4.02

%

4.43

%

4.11

%

Total loans

7,048,883

 

7,026,064

 

6,747,075

 

 

71,036

 

71,943

 

68,254

 

 

3.98

%

4.07

%

3.99

%

Total earning assets

8,147,118

 

8,195,798

 

8,127,002

 

 

77,604

 

78,728

 

76,101

 

 

3.76

%

3.82

%

3.70

%

 

 

 

 

 

 

 

 

 

 

 

 

LESS: Allowance for loan losses

75,199

 

73,856

 

73,861

 

 

 

 

 

 

 

 

 

Cash and due from banks

49,065

 

45,705

 

46,056

 

 

 

 

 

 

 

 

 

Other assets

544,368

 

511,859

 

392,757

 

 

 

 

 

 

 

 

 

TOTAL AVERAGE ASSETS

$

8,665,352

 

$

8,679,506

 

$

8,491,954

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INTEREST-BEARING LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits: 19

 

 

 

 

 

 

 

 

 

 

 

Savings and NOW

$

615,730

 

$

684,507

 

$

693,419

 

 

$

275

 

$

276

 

$

301

 

 

0.18

%

0.16

%

0.17

%

Money market

3,378,006

 

3,226,569

 

3,244,628

 

 

11,523

 

10,476

 

8,110

 

 

1.35

%

1.30

%

0.99

%

Certificates of deposit

711,299

 

752,500

 

730,117

 

 

3,689

 

3,763

 

3,076

 

 

2.06

%

2.01

%

1.67

%

Total interest-bearing deposits 19

4,705,035

 

4,663,576

 

4,668,164

 

 

15,487

 

14,515

 

11,487

 

 

1.31

%

1.25

%

0.98

%

Junior subordinated debentures

106,363

 

106,363

 

106,363

 

 

1,022

 

1,080

 

1,028

 

 

3.76

%

4.02

%

3.78

%

FHLB borrowings and other

833,535

 

952,645

 

768,015

 

 

4,942

 

5,673

 

3,945

 

 

2.32

%

2.36

%

2.01

%

Total interest-bearing liabilities 19

5,644,933

 

5,722,584

 

5,542,542

 

 

21,451

 

21,268

 

16,460

 

 

1.50

%

1.48

%

1.17

%

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest bearing demand deposits 19

1,953,214

 

1,926,591

 

2,063,642

 

 

 

 

 

 

 

 

 

Other liabilities

258,371

 

238,544

 

135,508

 

 

 

 

 

 

 

 

 

Total average liabilities

7,856,518

 

7,887,719

 

7,741,692

 

 

 

 

 

 

 

 

 

Redeemable noncontrolling interests

944

 

943

 

13,074

 

 

 

 

 

 

 

 

 

Average shareholders’ equity

807,890

 

790,844

 

737,188

 

 

 

 

 

 

 

 

 

TOTAL AVERAGE LIABILITIES, RNCI, AND SHAREHOLDERS’ EQUITY

$

8,665,352

 

$

8,679,506

 

$

8,491,954

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

 

$

56,153

 

$

57,460

 

$

59,641

 

 

 

 

 

Interest rate spread

 

 

 

 

 

 

 

 

2.26

%

2.34

%

2.53

%

Net interest margin

 

 

 

 

 

 

 

 

2.72

%

2.78

%

2.90

%

 

 

 

 

 

 

 

 

 

 

 

 

Average total deposits 19

$

6,658,249

 

$

6,590,167

 

$

6,731,806

 

 

 

 

 

 

0.92

%

0.88

%

0.68

%

Average total deposits and borrowings 19

$

7,598,147

 

$

7,649,175

 

$

7,606,184

 

 

 

 

 

 

1.12

%

1.11

%

0.86

%

18 Average loans includes Loans held for sale and Nonaccrual loans

 

19 Average total deposits is the sum of Average total interest-bearing deposits and Average non-interest bearing demand deposits. Average total deposits and borrowings is the sum of Average total interest-bearing liabilities and Average non-interest bearing demand deposits.

BOSTON PRIVATE FINANCIAL HOLDINGS, INC.

Average Balances, Yields, and Rates

Unaudited ($ in thousands)

 

 

 

 

 

 

 

 

 

Average Balance

 

Interest Income/Expense

 

Average Yield/Rate

 

Nine Months Ended

 

Nine Months Ended

 

Nine Months Ended

INTEREST-EARNING ASSETS

9/30/19

9/30/18

 

9/30/19

9/30/18

 

9/30/19

9/30/18

Cash and investments:

 

 

 

 

 

 

 

 

Taxable investment securities

$

223,072

 

$

328,054

 

 

$

3,244

 

$

4,521

 

 

1.94

%

1.84

%

Non-taxable investment securities

305,422

 

297,509

 

 

5,726

 

5,261

 

 

2.50

%

2.36

%

Mortgage-backed securities

507,338

 

570,578

 

 

8,225

 

9,168

 

 

2.16

%

2.14

%

Short-term investments and other

104,225

 

174,736

 

 

3,049

 

3,831

 

 

3.78

%

2.91

%

Total cash and investments

1,140,057

 

1,370,877

 

 

20,244

 

22,781

 

 

2.36

%

2.21

%

Loans: 18

 

 

 

 

 

 

 

 

Commercial and industrial

1,088,027

 

969,063

 

 

33,673

 

27,554

 

 

4.08

%

3.75

%

Commercial real estate

2,474,804

 

2,464,788

 

 

87,222

 

83,020

 

 

4.65

%

4.44

%

Construction and land

203,211

 

171,825

 

 

7,610

 

6,142

 

 

4.94

%

4.71

%

Residential

2,999,480

 

2,771,875

 

 

76,847

 

68,263

 

 

3.42

%

3.28

%

Home equity

90,361

 

95,217

 

 

3,388

 

3,172

 

 

5.01

%

4.45

%

Other consumer

128,879

 

176,086

 

 

4,172

 

5,080

 

 

4.33

%

3.86

%

Total loans

6,984,762

 

6,648,854

 

 

212,912

 

193,231

 

 

4.04

%

3.85

%

Total earning assets

8,124,819

 

8,019,731

 

 

233,156

 

216,012

 

 

3.80

%

3.57

%

 

 

 

 

 

 

 

 

 

LESS: Allowance for loan losses

74,863

 

73,894

 

 

 

 

 

 

 

Cash and due from banks (non-interest bearing)

46,906

 

47,859

 

 

 

 

 

 

 

Other assets

516,642

 

404,375

 

 

 

 

 

 

 

TOTAL AVERAGE ASSETS

$

8,613,504

 

$

8,398,071

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INTEREST-BEARING LIABILITIES

 

 

 

 

 

 

 

 

Interest-bearing deposits: 19

 

 

 

 

 

 

 

 

Savings and NOW

$

658,154

 

$

709,751

 

 

$

847

 

$

820

 

 

0.17

%

0.15

%

Money market

3,317,117

 

3,139,107

 

 

32,072

 

17,967

 

 

1.29

%

0.77

%

Certificates of deposit

746,453

 

691,670

 

 

11,141

 

7,589

 

 

2.00

%

1.47

%

Total interest-bearing deposits 19

4,721,724

 

4,540,528

 

 

44,060

 

26,376

 

 

1.25

%

0.78

%

Junior subordinated debentures

106,363

 

106,363

 

 

3,223

 

2,882

 

 

4.05

%

3.62

%

FHLB borrowings and other

801,519

 

889,178

 

 

13,922

 

12,185

 

 

2.29

%

1.81

%

Total interest-bearing liabilities 19

5,629,606

 

5,536,069

 

 

61,205

 

41,443

 

 

1.45

%

1.00

%

 

 

 

 

 

 

 

 

 

Non-interest bearing demand deposits 19

1,949,948

 

1,948,573

 

 

 

 

 

 

 

Payables and other liabilities

243,370

 

130,410

 

 

 

 

 

 

 

Total average liabilities

7,822,924

 

7,615,052

 

 

 

 

 

 

 

Redeemable noncontrolling interests

1,642

 

16,294

 

 

 

 

 

 

 

Average shareholders’ equity

788,938

 

766,725

 

 

 

 

 

 

 

TOTAL AVERAGE LIABILITIES, RNCI, AND SHAREHOLDERS’ EQUITY

$

8,613,504

 

$

8,398,071

 

 

 

 

 

 

 

Net interest income

 

 

 

$

171,951

 

$

174,569

 

 

 

 

Interest rate spread

 

 

 

 

 

 

2.35

%

2.57

%

Net interest margin

 

 

 

 

 

 

2.80

%

2.88

%

 

 

 

 

 

 

 

 

 

Average total deposits 19

$

6,671,672

 

$

6,489,101

 

 

 

 

 

0.88

%

0.54

%

Average total deposits and borrowings 19

$

7,579,554

 

$

7,484,642

 

 

 

 

 

1.08

%

0.74

%

18 Average loans includes Loans held for sale and Nonaccrual loans

 

19 Average total deposits is the sum of Average total interest-bearing deposits and Average non-interest bearing demand deposits. Average total deposits and borrowings is the sum of Average total interest-bearing liabilities and Average non-interest bearing demand deposits.

BOSTON PRIVATE FINANCIAL HOLDINGS, INC.

 

 

 

 

 

 

 

 

Regional Loan Data

 

 

 

 

 

 

 

 

Unaudited ($ in thousands)

 

 

 

 

 

 

 

 

 

3Q19

 

2Q19

 

1Q19

 

4Q18

 

3Q18

LOANS: 20

 

 

 

 

 

 

 

 

 

New England

$

3,868,690

 

 

$

3,957,221

 

 

$

3,901,644

 

 

$

3,890,607

 

 

$

3,783,032

 

San Francisco Bay Area

1,559,569

 

 

1,538,441

 

 

1,499,626

 

 

1,488,017

 

 

1,491,528

 

Southern California

1,638,892

 

 

1,584,598

 

 

1,525,698

 

 

1,514,534

 

 

1,445,860

 

Total loans

$

7,067,151

 

 

$

7,080,260

 

 

$

6,926,968

 

 

$

6,893,158

 

 

$

6,720,420

 

 

 

 

 

 

 

 

 

 

 

Loans (charged-off) / recovered, net:

 

 

 

 

 

 

 

 

 

New England

$

275

 

 

$

31

 

 

$

222

 

 

$

(100

)

 

$

232

 

San Francisco Bay Area

6

 

 

20

 

 

18

 

 

1,804

 

 

706

 

Southern California

(156

)

 

(161

)

 

(312

)

 

15

 

 

47

 

Total net loans (charged-off) / recovered

$

125

 

 

$

(110

)

 

$

(72

)

 

$

1,719

 

 

$

985

 

 

 

 

 

 

 

 

 

 

 

Special mention loans:

 

 

 

 

 

 

 

 

 

New England

$

19,828

 

 

$

35,235

 

 

$

34,675

 

 

$

31,147

 

 

$

20,382

 

San Francisco Bay Area

4,821

 

 

10,360

 

 

23,486

 

 

18,585

 

 

18,359

 

Southern California

33,484

 

 

25,082

 

 

28,626

 

 

28,796

 

 

28,665

 

Total special mention loans

$

58,133

 

 

$

70,677

 

 

$

86,787

 

 

$

78,528

 

 

$

67,406

 

 

 

 

 

 

 

 

 

 

 

Accruing classified loans:

 

 

 

 

 

 

 

 

 

New England

$

21,830

 

 

$

13,012

 

 

$

15,830

 

 

$

10,392

 

 

$

10,083

 

San Francisco Bay Area

23,938

 

 

25,957

 

 

20,801

 

 

24,584

 

 

24,252

 

Southern California

17,510

 

 

14,914

 

 

5,890

 

 

19,119

 

 

21,045

 

Total accruing classified loans

$

63,278

 

 

$

53,883

 

 

$

42,521

 

 

$

54,095

 

 

$

55,380

 

 

 

 

 

 

 

 

 

 

 

Nonaccruing loans:

 

 

 

 

 

 

 

 

 

New England

$

8,999

 

 

$

8,837

 

 

$

6,161

 

 

$

6,728

 

 

$

5,131

 

San Francisco Bay Area

2,395

 

 

2,644

 

 

2,480

 

 

2,488

 

 

1,169

 

Southern California

6,171

 

 

5,674

 

 

3,378

 

 

4,841

 

 

5,797

 

Total nonaccruing loans

$

17,565

 

 

$

17,155

 

 

$

12,019

 

 

$

14,057

 

 

$

12,097

 

 

 

 

 

 

 

 

 

 

 

20 The concentration of the Private Banking loan data and credit quality is primarily based on the location of the lenders' regional offices.

BOSTON PRIVATE FINANCIAL HOLDINGS, INC.

Reconciliations of Non-GAAP Financial Measures

Unaudited ($ in thousands)

 

 

 

 

 

 

 

 

 

 

3Q19

 

2Q19

 

1Q19

 

4Q18

 

3Q18

 

 

 

 

 

 

 

 

 

 

ROACE AND ROATCE:

 

 

 

 

 

 

 

 

 

Net income attributable to the Company (GAAP) (A)

$

19,962

 

 

$

19,380

 

 

$

19,442

 

 

$

33,302

 

 

$

17,962

 

ADD: Amortization of intangibles, net of tax

530

 

 

531

 

 

531

 

 

537

 

 

593

 

Tangible common net income (non-GAAP) (B)

$

20,492

 

 

$

19,911

 

 

$

19,973

 

 

$

33,839

 

 

$

18,555

 

 

 

 

 

 

 

 

 

 

 

Total average shareholders’ equity (C)

$

807,890

 

 

$

790,844

 

 

$

766,283

 

 

$

739,313

 

 

$

737,188

 

LESS: Average goodwill and intangible assets, net

(68,359

)

 

(68,889

)

 

(69,498

)

 

(83,153

)

 

(89,830

)

Average tangible common equity (non-GAAP) (D)

$

739,531

 

 

$

721,955

 

 

$

696,785

 

 

$

656,160

 

 

$

647,358

 

 

 

 

 

 

 

 

 

 

 

ROACE (annualized) (A / C)

9.80

%

 

9.83

%

 

10.29

%

 

17.87

%

 

9.67

%

ROATCE (annualized) (B / D)

10.99

%

 

11.06

%

 

11.63

%

 

20.46

%

 

11.37

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PRE-TAX, PRE-PROVISION INCOME:

 

 

 

 

 

 

 

 

 

Income before income taxes (GAAP)

$

25,575

 

 

$

24,818

 

 

$

24,459

 

 

$

42,192

 

 

$

24,347

 

ADD BACK: Provision/ (credit) for loan losses

167

 

 

1,363

 

 

(1,426

)

 

93

 

 

(949

)

Pre-tax, pre-provision income (non-GAAP)

$

25,742

 

 

$

26,181

 

 

$

23,033

 

 

$

42,285

 

 

$

23,398

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CORE NET INTEREST INCOME AND MARGIN:

 

 

 

 

 

 

 

 

 

Net interest income (GAAP)

$

56,153

 

 

$

57,460

 

 

$

58,338

 

 

$

59,997

 

 

$

59,641

 

LESS: Interest recovered on previous nonaccrual loans

180

 

 

—

 

 

258

 

 

986

 

 

986

 

Net interest income, excluding interest recovered while loans on nonaccrual status ("Core net interest income") (non-GAAP)

$

55,973

 

 

$

57,460

 

 

$

58,080

 

 

$

59,011

 

 

$

58,655

 

Net interest margin, excluding interest recovered while loans on nonaccrual status ("Core net interest margin") (non-GAAP)

2.71

%

 

2.78

%

 

2.89

%

 

2.90

%

 

2.90

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TANGIBLE COMMON EQUITY:

 

 

 

 

 

 

 

 

 

Total Shareholders’ Equity (GAAP)

$

808,688

 

 

$

798,211

 

 

$

778,819

 

 

$

753,954

 

 

$

738,009

 

LESS: Goodwill and intangible assets, net

(68,229

)

 

(68,491

)

 

(69,162

)

 

(69,834

)

 

(89,432

)

Tangible common equity (non-GAAP) (A)

$

740,459

 

 

$

729,720

 

 

$

709,657

 

 

$

684,120

 

 

$

648,577

 

 

 

 

 

 

 

 

 

 

 

Total Assets (GAAP)

$

8,690,944

 

 

$

8,712,873

 

 

$

8,572,143

 

 

$

8,494,625

 

 

$

8,375,840

 

LESS: Goodwill and intangible assets, net

(68,229

)

 

(68,491

)

 

(69,162

)

 

(69,834

)

 

(89,432

)

Tangible assets (non-GAAP) (B)

$

8,622,715

 

 

$

8,644,382

 

 

$

8,502,981

 

 

$

8,424,791

 

 

$

8,286,408

 

 

 

 

 

 

 

 

 

 

 

End of Period Shares Outstanding (C)

83,241,952

 

83,774,335

 

83,773,650

 

83,655,651

 

84,602,519

 

 

 

 

 

 

 

 

 

 

Tangible common equity/ Tangible assets (non-GAAP) (A / B)

8.59

%

 

8.44

%

 

8.35

%

 

8.12

%

 

7.83

%

Tangible Book Value Per Share (non-GAAP) (A / C)

$

8.90

 

 

$

8.71

 

 

$

8.47

 

 

$

8.18

 

 

$

7.67

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BOSTON PRIVATE FINANCIAL HOLDINGS, INC.

Reconciliations of Non-GAAP Financial Measures

Unaudited ($ in thousands)

 

 

 

 

 

 

 

 

 

 

3Q19

 

2Q19

 

1Q19

 

4Q18

 

3Q18

RETURN ON AVERAGE ASSETS:

 

 

 

 

 

 

 

 

 

Net income (GAAP) (A)

$

19,962

 

 

$

19,380

 

 

$

19,442

 

 

$

33,302

 

 

$

17,962

 

Average Assets (non-GAAP) (B)

8,665,352

 

 

8,679,506

 

 

8,493,725

 

 

8,445,298

 

 

8,491,954

 

Return on average assets (non-GAAP) (A / B)

0.91

%

 

0.90

%

 

0.93

%

 

1.56

%

 

0.84

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EFFICIENCY RATIO:

 

 

 

 

 

 

 

 

 

Total noninterest expense (GAAP) (A)

$

55,537

 

 

$

55,659

 

 

$

60,553

 

 

$

63,557

 

 

$

68,557

 

Less: Amortization of intangibles

671

 

 

672

 

 

672

 

 

680

 

 

750

 

Less: Restructuring

—

 

 

—

 

 

1,646

 

 

2,065

 

 

5,763

 

Total noninterest expense (non-GAAP) (B)

$

54,866

 

 

$

54,987

 

 

$

58,235

 

 

$

60,812

 

 

$

62,044

 

 

 

 

 

 

 

 

 

 

 

Net interest income (GAAP)

$

56,153

 

 

$

57,460

 

 

$

58,338

 

 

$

59,997

 

 

$

59,641

 

Total core fees and income (GAAP)

25,155

 

 

24,292

 

 

24,280

 

 

28,691

 

 

31,592

 

Gain on sale of affiliate (GAAP)

—

 

 

—

 

 

—

 

 

18,142

 

 

—

 

Total other income (GAAP)

(29

)

 

88

 

 

968

 

 

(988

)

 

722

 

Total revenue (C)

$

81,279

 

 

$

81,840

 

 

$

83,586

 

 

$

105,842

 

 

$

91,955

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio (GAAP) (A / C)

68.3

%

 

68.0

%

 

72.4

%

 

60.0

%

 

74.6

%

Efficiency ratio, excluding amortization of intangibles and restructuring, if any (non-GAAP) (B / C)

67.5

%

 

67.2

%

 

69.7

%

 

57.1

%

 

67.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER INCOME: (GAAP)

 

 

 

 

 

 

 

 

 

Gain/ (loss) on sale of investments, net

$

—

 

 

$

—

 

 

$

—

 

 

$

(596

)

 

$

—

 

Gain/ (loss) on OREO, net

—

 

 

—

 

 

91

 

 

—

 

 

—

 

Gain on sale of affiliate

—

 

 

—

 

 

—

 

 

18,142

 

 

—

 

Other

(29

)

 

88

 

 

877

 

 

(392

)

 

722

 

Total other income (GAAP)

$

(29

)

 

$

88

 

 

$

968

 

 

$

17,154

 

 

$

722

 

BOSTON PRIVATE FINANCIAL HOLDINGS, INC.

 

 

 

 

 

 

 

 

Reconciliations of Non-GAAP measures: Operating Adjustments

Unaudited ($ in thousands, except share and per share data)

 

 

 

 

 

 

 

 

 

3Q19

 

2Q19

 

1Q19

 

4Q18

 

3Q18

NET INCOME ATTRIBUTABLE TO THE COMPANY:

 

 

 

 

 

 

 

 

 

NET INCOME ATTRIBUTABLE TO THE COMPANY (GAAP)

$

19,962

 

 

$

19,380

 

 

$

19,442

 

 

$

33,302

 

 

$

17,962

 

LESS: Gain on sale of affiliate

—

 

 

—

 

 

—

 

 

18,142

 

 

—

 

ADD: Information services 21

—

 

 

—

 

 

—

 

 

(441

)

 

—

 

ADD: Restructuring

—

 

 

—

 

 

1,646

 

 

2,065

 

 

5,763

 

ADD: Tax adjustments 22

—

 

 

—

 

 

—

 

 

3,502

 

 

—

 

Tax effect at statutory rate

—

 

 

—

 

 

(346

)

 

(341

)

 

(1,210

)

NET INCOME ATTRIBUTABLE TO THE COMPANY (NON-GAAP)

$

19,962

 

 

$

19,380

 

 

$

20,742

 

 

$

19,945

 

 

$

22,515

 

 

 

 

 

 

 

 

 

 

 

NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS:

 

 

 

 

 

 

 

 

 

NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS (GAAP)

$

20,266

 

 

$

18,564

 

 

$

20,999

 

 

$

35,996

 

 

$

17,133

 

LESS: Gain on sale of affiliate

—

 

 

—

 

 

—

 

 

18,142

 

 

—

 

ADD: Information services 21

—

 

 

—

 

 

—

 

 

(441

)

 

—

 

ADD: Restructuring

—

 

 

—

 

 

1,646

 

 

2,065

 

 

5,763

 

ADD: Tax adjustments 22

—

 

 

—

 

 

—

 

 

3,502

 

 

—

 

Tax effect at statutory rate

—

 

 

—

 

 

(346

)

 

(341

)

 

(1,210

)

Net income attributable to the common shareholders, treasury stock method, excluding notable items (non-GAAP)

$

20,266

 

 

$

18,564

 

 

$

22,299

 

 

$

22,639

 

 

$

21,686

 

 

 

 

 

 

 

 

 

 

 

Weighted average diluted shares outstanding

83,956,708

 

 

84,048,972

 

 

84,010,450

 

 

84,863,779

 

 

85,498,568

 

Diluted total earnings per share (GAAP)

$

0.24

 

 

$

0.22

 

 

$

0.25

 

 

$

0.42

 

 

$

0.20

 

Diluted total earnings per share, excluding notable items (non-GAAP)

$

0.24

 

 

$

0.22

 

 

$

0.27

 

 

$

0.27

 

 

$

0.25

 

 

 

 

 

 

 

 

 

 

 

Average common equity (non-GAAP)

$

807,890

 

 

$

790,844

 

 

$

766,283

 

 

$

739,313

 

 

$

737,188

 

Average tangible common equity (non-GAAP)

$

739,531

 

 

$

721,955

 

 

$

696,785

 

 

$

656,160

 

 

$

647,358

 

Return on average common equity, excluding notable items (non-GAAP)

9.80

%

 

9.83

%

 

10.98

%

 

10.70

%

 

12.12

%

Return on average tangible common equity, excluding notable items (non-GAAP)

10.99

%

 

11.06

%

 

12.38

%

 

12.38

%

 

14.16

%

 

 

 

 

 

 

 

 

 

 

Pre-tax, pre-provision income (non-GAAP)

$

25,742

 

 

$

26,181

 

 

$

23,033

 

 

$

42,285

 

 

$

23,398

 

LESS: Gain on sale of affiliate

—

 

 

—

 

 

—

 

 

18,142

 

 

—

 

ADD: Information services 21

—

 

 

—

 

 

—

 

 

(441

)

 

—

 

ADD: Restructuring

—

 

 

—

 

 

1,646

 

 

2,065

 

 

5,763

 

Pre-tax, pre-provision income, excluding notable items (non-GAAP)

$

25,742

 

 

$

26,181

 

 

$

24,679

 

 

$

25,767

 

 

$

29,161

 

 

 

 

 

 

 

 

 

 

 

21 In the fourth quarter of 2018, $0.4 million of Information services expense was reclassified to Restructuring expense in conjunction with the announcement of the Company's formal restructuring plan.

 

22 Additional tax expense in the fourth quarter of 2018 relates to the completion of the sale of BOS.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20191024005951/en/

Adam Bromley (617) 912-4386 abromley@bostonprivate.com