BPFH Boston Private Financial Holdings Inc

First Quarter 2021 Highlights include:

• Net income of $10.7 million, or $0.13 per diluted share
• Return on average common equity (non-GAAP) of 4.9%
• Return on average tangible common equity (non-GAAP) of 5.6%
• Average total deposits of $8.8 billion, a 24% increase year-over-year
• Average total loans of $7.1 billion, a 1% increase year-over-year
• Total assets under management/advisory (“AUM”) of $17.2 billion, a 19% increase year-over-year driven by favorable market action
• Total provision credit of $9.0 million

Boston Private Financial Holdings, Inc. (NASDAQ: BPFH) (the “Company” or “Boston Private”) today reported first quarter 2021 Net income attributable to the Company of $10.7 million, compared to $25.0 million for the fourth quarter of 2020 and $0.8 million for the first quarter of 2020. First quarter 2021 Diluted earnings per share were $0.13, compared to $0.30 in the fourth quarter of 2021 and $0.01 in the first quarter of 2020.

"I am proud of the dedication and commitment shown by the Boston Private employees who continue to deliver exceptional client service and execute on our strategic objectives, while also preparing for our pending merger with SVB Financial Group," said Anthony DeChellis, CEO of Boston Private. "This quarter's financial results include transaction costs related to the pending merger with SVB Financial Group, a release from our allowance for loan losses, and continued strong deposit growth."

Announced Merger

As previously announced, the Company entered into a definitive merger agreement with SVB Financial Group ("SVB") pursuant to which SVB will acquire Boston Private. The transaction was unanimously approved by both companies' Boards of Directors and is expected to close in mid-2021, subject to the satisfaction of customary closing conditions, including receipt of customary regulatory approvals and approval by the shareholders of Boston Private.

Summary Financial Results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% Change

($ in millions, except for per share data)

 

1Q21

 

4Q20

 

1Q20

 

LQ

 

Y/Y

Net income - GAAP

 

$10.7

 

$25.0

 

$0.8

 

(57)

%

 

nm

Diluted earnings per share - GAAP

 

$0.13

 

$0.30

 

$0.01

 

(57)

%

 

nm

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Financial Measures:

 

 

 

 

 

 

 

 

 

 

Pre-tax, pre-provision income

 

$9.7

 

$28.1

 

$17.9

 

(65)

%

 

(46)

%

Return on average common equity ("ROACE")

 

4.9

%

 

11.5

%

 

0.4

%

 

 

 

 

Return on average tangible common equity ("ROATCE")

 

5.6

%

 

12.7

%

 

0.7

%

 

 

 

 

nm = not meaningful

 

 

 

 

 

 

 

 

 

 

The Company's financial results in the first quarter of 2021 were impacted by:

• Transaction costs of $10.7 million related to the proposed merger with SVB, or ($0.09) per diluted share on a tax-effected basis
• Gain of $2.4 million related to the revaluation of a receivable from the divestiture of former affiliate, Bingham, Osborn & Scarborough, LLC ("BOS"), or $0.02 per diluted share on a tax-effected basis
• Total provision credit of $9.0 million, including a provision credit for loan losses of $7.0 million and a credit for unfunded loan commitments of $2.0 million, or $0.08 per diluted share on a tax-effected basis

Net Interest Income and Margin

 

 

 

 

 

 

 

 

 

 

 

 

% Change

($ in millions)

 

1Q21

 

4Q20

 

1Q20

 

LQ

 

Y/Y

Net interest income

 

$59.5

 

$59.4

 

$57.3

 

—

%

 

4

%

Net interest margin

 

2.45

%

 

2.52

%

 

2.76

%

 

 

 

 

 

Net interest income for the first quarter of 2021 was $59.5 million, flat linked quarter and a 4% increase year-over-year. The year-over-year increase was primarily driven by $3.6 million of Paycheck Protection Program ("PPP") loan-related income recognized in the first quarter of 2021. The Small Business Administration ("SBA") forgave $75 million of PPP loans in the first quarter of 2021, which drove the accelerated recognition of PPP income.

Net interest margin decreased 7 basis points on a linked quarter basis to 2.45%. The decline was primarily driven by excess cash and investments balances and lower asset yields, partially offset by lower funding costs.

Noninterest Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% Change

($ in millions)

 

1Q21

 

4Q20

 

1Q20

 

LQ

 

Y/Y

Wealth management and trust fees

 

$19.1

 

$19.0

 

$18.4

 

1

%

 

4

%

Investment management fees

 

0.5

 

1.2

 

1.9

 

(58)

%

 

(75)

%

Private banking fees 1

 

3.2

 

5.0

 

2.6

 

nm

 

22

%

Total core fees and income

 

$22.8

 

$25.2

 

$22.9

 

(10)

%

 

—

%

Total other income

 

3.4

 

1.4

 

(1.4)

 

nm

 

nm

Total noninterest income

 

$26.2

 

$26.7

 

$21.5

 

(2)

%

 

22

%

nm = not meaningful

 

 

 

 

 

 

 

 

 

 

1 Private banking fees includes Other banking fee income and Gain/(loss) on sale of loans, net

Total core fees and income for the first quarter of 2021 were $22.8 million, a 10% decrease linked quarter. The linked quarter decrease was primarily driven by lower swap fee income within Private banking fees and lower Investment management fees in the first quarter of 2021.

Total other income includes a gain of $2.4 million for the first quarter of 2021 related to the revaluation of the BOS receivable.

Assets Under Management/Advisory

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% Change

($ in millions)

 

1Q21

 

4Q20

 

1Q20

 

LQ

 

Y/Y

Wealth Management and Trust

 

$17,002

 

$16,574

 

$13,497

 

3

%

 

26

%

Other 2

 

196

 

526

 

1,016

 

(63)

%

 

(81)

%

Total assets under management/advisory

 

$17,198

 

$17,100

 

$14,513

 

1

%

 

19

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net flows

 

 

 

 

 

 

 

 

 

 

Wealth Management and Trust

 

$(20)

 

$(128)

 

$176

 

 

 

 

Other 2

 

(388)

 

(268)

 

(26)

 

 

 

 

Total net flows

 

$(408)

 

$(396)

 

$150

 

 

 

 

2 Includes results from DGHM

Total AUM was $17.2 billion as of March 31, 2021, a 1% increase linked quarter. The linked quarter increase was primarily driven by the impact of higher equity market values, partially offset by net outflows.

Total net flows were negative $408 million during the first quarter of 2021, driven by net flows of negative $388 million at DGHM and negative $20 million in the Wealth Management and Trust segment. New business into the Wealth Management & Trust segment was $231 million for the first quarter of 2021, compared to $297 million for the fourth quarter of 2020.

Noninterest Expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% Change

($ in millions)

 

1Q21

 

4Q20

 

1Q20

 

LQ

 

Y/Y

Salaries and employee benefits

 

$40.9

 

$36.0

 

$35.1

 

14

%

 

17

%

Occupancy and equipment

 

8.2

 

7.7

 

7.6

 

6

%

 

7

%

Information systems

 

9.7

 

8.6

 

6.7

 

13

%

 

45

%

Professional services

 

3.3

 

2.7

 

3.6

 

20

%

 

(8)

%

Merger costs

 

10.7

 

—

 

—

 

nm

 

nm

Marketing and business development

 

0.6

 

1.2

 

1.9

 

(46)

%

 

(67)

%

Amortization of intangibles

 

0.7

 

0.6

 

0.7

 

18

%

 

(7)

%

FDIC insurance

 

1.0

 

0.9

 

—

 

10

%

 

n/a

Other

 

0.9

 

0.2

 

5.2

 

nm

 

(83)

%

Total noninterest expense

 

$75.9

 

$58.0

 

$60.9

 

31

%

 

25

%

 

 

 

 

 

 

 

 

 

 

 

Memo: Excluding Off-Balance Sheet Provision

 

 

 

 

 

 

 

 

 

 

Reserve for unfunded loan commitments

 

$(2.0)

 

$(2.4)

 

$1.8

 

(16)

%

 

nm

Total noninterest expense, excluding Reserve for unfunded loan commitments (non-GAAP)

 

$77.9

 

$60.4

 

$59.1

 

29

%

 

32

%

Total noninterest expense for the first quarter of 2021 was $75.9 million, a 31% increase linked quarter and a 25% increase year-over-year. The increase was primarily driven by $10.7 million of transaction costs within Merger costs expense related to the proposed merger with SVB. The linked quarter increase was also driven by seasonal compensation expense for bonuses and payroll taxes, and both the linked quarter and year-over-year increases were also driven by higher Information systems expense from technology initiatives placed in service.

Income Tax Expense

The Company's effective tax rate for the first quarter of 2021 was 36.3%. The effective tax rate is higher primarily due to the expected non-deductibility of certain transaction costs related to the proposed merger with SVB.

Loans - QTD Averages & Yields

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% Change

($ in millions)

 

1Q21

 

4Q20

 

1Q20

 

LQ

 

Y/Y

Commercial and industrial

 

$1,034

 

$1,036

 

$1,149

 

—

%

 

(10)

%

Paycheck Protection Program

 

327

 

349

 

—

 

(6)

%

 

nm

Commercial real estate

 

2,723

 

2,711

 

2,582

 

—

%

 

5

%

Construction and land

 

165

 

172

 

233

 

(4)

%

 

(29)

%

Residential

 

2,667

 

2,721

 

2,851

 

(2)

%

 

(6)

%

Home equity

 

76

 

79

 

86

 

(4)

%

 

(11)

%

Consumer and other

 

122

 

121

 

132

 

1

%

 

(8)

%

Total loans

 

$7,115

 

$7,189

 

$7,034

 

(1)

%

 

1

%

Total loans, excluding PPP (non-GAAP)

 

$6,789

 

$6,840

 

$7,034

 

(1)

%

 

(3)

%

 

 

 

 

 

 

 

 

 

 

 

Total loan yields

 

3.26

%

 

3.31

%

 

3.75

%

 

 

 

 

 

Average total loans, excluding PPP (non-GAAP) in the first quarter of 2021 decreased 1% linked quarter and decreased 3% year-over-year.

• Average Commercial and industrial loans decreased 10% year-over-year driven by lower revolving line usage
• Average Residential mortgage loans decreased 6% year-over-year, driven by the sale of $72 million of loans late in the third quarter of 2020 and slowed originations throughout 2020
• Average Commercial real estate loans increased 5% year-over-year, driven by increased loan balances attributable to the debt service reserve program and the conversion of two loans from construction to permanent financing during the fourth quarter of 2020
• Average PPP loans decreased 6% linked quarter. End-of-period PPP loans increased 12% linked quarter as $130 million of originations late in the quarter were partially offset by the SBA's forgiveness of $75 million of loans early in the first quarter of 2021

Deposits - QTD Averages & Costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% Change

($ in millions)

 

1Q21

 

4Q20

 

1Q20

 

LQ

 

Y/Y

Noninterest bearing deposits

 

$2,552

 

$2,483

 

$2,046

 

3

%

 

25

%

Interest bearing deposits

 

6,277

 

5,868

 

5,061

 

7

%

 

24

%

Total deposits

 

$8,829

 

$8,351

 

$7,107

 

6

%

 

24

%

 

 

 

 

 

 

 

 

 

 

 

Cost of total deposits

 

0.22

%

 

0.26

%

 

0.72

%

 

 

 

 

Cost of total interest-bearing deposits

 

0.30

%

 

0.37

%

 

1.02

%

 

 

 

 

Average total deposits in the first quarter of 2021 increased 6% linked quarter and 24% year-over-year to $8.8 billion, driven by a combination of existing and new client balances.

Provision and Asset Quality

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in millions)

 

1Q21

 

4Q20

 

3Q20

 

2Q20

 

1Q20

Provision and Allowance

 

 

 

 

 

 

 

 

 

 

Provision/(credit) for loan losses

 

$(7.0)

 

$(3.0)

 

$(4.6)

 

$22.6

 

$17.0

Reserve for unfunded loan commitments

 

(2.0)

 

(2.4)

 

1.8

 

2.8

 

1.8

Total Provision/(credit) for credit losses

 

$(9.0)

 

$(5.4)

 

$(2.8)

 

$25.4

 

$18.8

Allowance for loan losses as a % of Total loans

 

1.03

%

 

1.14

%

 

1.17

%

 

1.22

%

 

0.97

%

 

 

 

 

 

 

 

 

 

 

 

Asset Quality

 

 

 

 

 

 

 

 

 

 

Total net loans (charged-off)/ recovered

 

$(0.2)

 

$(0.3)

 

$(0.2)

 

$(1.5)

 

$(0.3)

Total nonaccrual loans

 

$25.8

 

$23.9

 

$41.3

 

$25.6

 

$24.3

Nonaccrual loans as a % of Total loans

 

0.36

%

 

0.34

%

 

0.57

%

 

0.35

%

 

0.35

%

 

 

 

 

 

 

 

 

 

 

 

Special mention loans (criticized loans)

 

$152.5

 

$187.2

 

$199.5

 

$191.9

 

$92.6

Classified loans

 

161.9

 

130.7

 

123.1

 

114.2

 

112.3

Total criticized and classified loans

 

$314.4

 

$318.0

 

$322.6

 

$306.1

 

$204.9

The Company recorded a Total provision credit for credit losses of $9.0 million during the first quarter of 2021. The provision release was primarily driven by an improved economic forecast related to the current expected credit losses methodology and a change in the weighting of forecast scenarios used. The Allowance for loan losses as a percentage of Total loans, excluding PPP loans (non-GAAP), was 1.08% in the first quarter of 2021, compared to 1.19% in the fourth quarter of 2020.

Total nonaccrual loans as of March 31, 2021 were $25.8 million, an increase of $1.9 million, or 8%, on a linked quarter basis, primarily driven by one Commercial real estate relationship in New England and one Commercial and industrial relationship in Northern California.

Total criticized and classified loans as of March 31, 2021 were $314.4 million, a decrease of $3.6 million, or 1%, linked quarter. Classified loans increased 24% to $161.9 million in the first quarter of 2021, primarily driven by the downgrade of three Commercial real estate loans in New England and Northern California.

As of March 31, 2021:

• Residential loans on deferral totaled approximately $20 million, or 2.7% of total residential loans, compared to a peak of approximately $220 million, or 7% of total Residential loans, in the second quarter of 2020. This represents a decrease of 91% from the peak in the second quarter of 2020
• Commercial and industrial loans on deferral totaled approximately $6 million, or 0.5% of total Commercial and industrial loans, compared to a peak of approximately $125 million, or 13% of total Commercial and industrial loans, in the second quarter of 2020. This represents a decrease of 95% from the peak in the second quarter of 2020
• Borrowers with loans totaling $1.3 billion that qualified for and accepted the Commercial real estate debt service reserve program remain in the program, representing a total loan balance of approximately $70 million, or 2.7% of total Commercial real estate loans. The twelve month coverage period for debt service reserve balances will elapse in the second quarter of 2021

Capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1Q21

 

4Q20

 

3Q20

 

2Q20

 

1Q20

Tangible common equity/ Tangible assets (non-GAAP)

 

7.6

%

 

8.0

%

 

8.3

%

 

8.3

%

 

8.8

%

Tangible book value per share (non-GAAP)

 

$9.61

 

$9.73

 

$9.48

 

$9.25

 

$9.31

 

 

 

 

 

 

 

 

 

 

 

Regulatory Capital Ratios: 3

 

 

 

 

 

 

 

 

 

 

Tier 1 common equity

 

11.4

%

 

11.5

%

 

11.3

%

 

11.1

%

 

11.2

%

Tier 1 risk-based capital

 

12.8

%

 

13.0

%

 

12.8

%

 

12.6

%

 

12.7

%

Total risk-based capital

 

14.0

%

 

14.3

%

 

14.1

%

 

13.9

%

 

13.8

%

Tier 1 leverage capital

 

8.7

%

 

8.9

%

 

9.2

%

 

9.2

%

 

9.7

%

3 Current quarter information is presented based on estimated data.

The Company's tangible book value per share increased 3% year-over-year to $9.61 in the first quarter of 2021.

Dividend Payments

Concurrent with the release of first quarter 2021 earnings, the Board of Directors of the Company declared a cash dividend payable to common shareholders of $0.06 per share. The record date for this dividend is May 7, 2021, and the payment date is May 21, 2021.

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; return on average assets; tangible book value per share; pre-tax, pre-provision income; tangible common equity / tangible assets; the efficiency ratio, excluding amortization of intangibles; net income/(loss) attributable to the Company, excluding notable items; total noninterest expense, excluding reserve for unfunded loan commitments; net income/(loss) attributable to the common shareholders, treasury stock method, excluding notable items; diluted earnings/(loss) per share, excluding notable items; average total loans, excluding PPP; and total loans, excluding PPP.

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 14 of the attached financial statements.

About Boston Private

Boston Private is a leading provider of integrated wealth management, trust and banking services to individuals, families, businesses and nonprofits.

For more than 30 years, Boston Private has delivered comprehensive advice coupled with deep technical expertise to help clients simplify their lives and achieve their goals. The firm offers the capabilities of a large institution with the superior service of a boutique firm to clients across the United States.

Boston Private is the corporate brand of Boston Private Financial Holdings, Inc. (NASDAQ: BPFH).

For more information, visit 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 interest rate trends and future liquidity; expectations as to changes in assets, deposits and results of operations; the impact of the COVID-19 pandemic; future operations; market position and financial position; and prospects, plans and objectives of management. 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, the negative impacts and disruptions of the COVID-19 pandemic and measures taken to contain its spread on our employees, customers, business operations, credit quality, financial position, liquidity and results of operations; the failure to obtain our shareholder’s approval to our proposed merger with SVB; the risk that a condition to closing of the proposed merger may not be satisfied; the risk that a regulatory approval that may be required for the proposed merger is not obtained or is obtained subject to conditions that are not anticipated; the effect of the announcement of the proposed merger on our ability to maintain relationships with our key partners, customers and employees, and on our operating results and business generally; changes in customer behavior; the possibility that future credits losses are higher than currently expected due to changes in economic assumptions, customer behavior or adverse economic developments; turbulence in the capital and debt markets; changes in interest rates; increases in loan defaults and charge-off rates; decreases in the value of securities and other assets; changes in loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and investments; competitive pressures from other financial institutions; operational risks including, but not limited to, cybersecurity incidents, fraud, natural disasters and future pandemics; changes in regulation; reputational risk relating to the Company’s participation in the Paycheck Protection Program and other pandemic-related legislative and regulatory initiatives and programs; risks 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 2020 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 statements are made.

 

BOSTON PRIVATE FINANCIAL HOLDINGS, INC.

 

 

 

 

Consolidated Balance Sheets

 

 

 

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

 

 

 

 

 

 

 

 

 

 

1Q21

 

4Q20

 

3Q20

 

2Q20

 

1Q20

ASSETS:

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

1,389,943

 

 

$

1,055,588

 

 

$

546,263

 

 

$

179,027

 

 

$

61,714

 

Investment securities available-for-sale

1,339,408

 

 

1,243,693

 

 

1,011,327

 

 

1,002,970

 

 

993,166

 

Investment securities held-to-maturity

31,943

 

 

35,223

 

 

38,600

 

 

42,495

 

 

45,395

 

Equity securities at fair value

39,708

 

 

41,452

 

 

32,818

 

 

24,492

 

 

23,080

 

Stock in Federal Home Loan Bank and Federal Reserve Bank

28,651

 

 

28,663

 

 

36,618

 

 

42,407

 

 

45,273

 

Loans held for sale

8,434

 

 

17,421

 

 

15,074

 

 

9,786

 

 

7,671

 

Loans

7,216,325

 

 

7,104,309

 

 

7,222,569

 

 

7,332,954

 

 

7,043,338

 

Less: Allowance for loan losses

74,010

 

 

81,238

 

 

84,551

 

 

89,324

 

 

68,211

 

Loans, net of Allowance for loan losses

7,142,315

 

 

7,023,071

 

 

7,138,018

 

 

7,243,630

 

 

6,975,127

 

Premises and equipment, net

41,637

 

 

44,087

 

 

42,907

 

 

43,805

 

 

43,544

 

Goodwill

57,607

 

 

57,607

 

 

57,607

 

 

57,607

 

 

57,607

 

Intangible assets, net

8,389

 

 

9,056

 

 

8,898

 

 

8,935

 

 

9,637

 

Accrued interest receivable

26,029

 

 

26,191

 

 

25,935

 

 

24,918

 

 

24,054

 

Deferred income taxes, net

11,353

 

 

6,774

 

 

8,250

 

 

9,116

 

 

5,630

 

Right-of-use assets

93,224

 

 

97,859

 

 

94,879

 

 

94,143

 

 

98,896

 

Other assets

319,851

 

 

362,048

 

 

374,111

 

 

375,575

 

 

355,532

 

TOTAL ASSETS

$

10,538,492

 

 

$

10,048,733

 

 

$

9,431,305

 

 

$

9,158,906

 

 

$

8,746,326

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES:

 

 

 

 

 

 

 

 

 

Deposits

$

9,147,618

 

 

$

8,595,366

 

 

$

7,827,719

 

 

$

7,427,397

 

 

$

6,835,572

 

Securities sold under agreements to repurchase

46,262

 

 

53,472

 

 

42,544

 

 

46,623

 

 

45,319

 

Federal funds purchased

—

 

 

—

 

 

—

 

 

—

 

 

145,000

 

Federal Home Loan Bank borrowings

115,019

 

 

114,659

 

 

296,236

 

 

426,313

 

 

491,254

 

Junior subordinated debentures

106,363

 

 

106,363

 

 

106,363

 

 

106,363

 

 

106,363

 

Lease liabilities

107,143

 

 

112,339

 

 

108,932

 

 

108,234

 

 

113,574

 

Other liabilities

157,664

 

 

198,526

 

 

203,342

 

 

218,771

 

 

180,452

 

TOTAL LIABILITIES

9,680,069

 

 

9,180,725

 

 

8,585,136

 

 

8,333,701

 

 

7,917,534

 

 

 

 

 

 

 

 

 

 

 

SHAREHOLDERS' EQUITY:

 

 

 

 

 

 

 

 

 

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

82,455

 

 

82,334

 

 

82,255

 

 

82,058

 

 

81,800

 

Additional paid-in capital

600,089

 

 

597,558

 

 

597,113

 

 

594,463

 

 

593,167

 

Retained earnings

162,137

 

 

156,431

 

 

136,394

 

 

118,647

 

 

131,761

 

Accumulated other comprehensive income

13,742

 

 

31,685

 

 

30,407

 

 

30,037

 

 

22,064

 

TOTAL SHAREHOLDERS' EQUITY

858,423

 

 

868,008

 

 

846,169

 

 

825,205

 

 

828,792

 

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

10,538,492

 

 

$

10,048,733

 

 

$

9,431,305

 

 

$

9,158,906

 

 

$

8,746,326

 

 

 

 

 

 

 

 

 

 

 

   

BOSTON PRIVATE FINANCIAL HOLDINGS, INC.

 

 

 

 

 

 

 

 

 

Consolidated Income Statements

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

 

 

1Q21

 

4Q20

 

3Q20

 

2Q20

 

1Q20

REVENUE:

 

Interest income

$

64,893

 

 

$

66,351

 

 

$

65,453

 

 

$

68,819

 

 

$

73,082

 

Interest expense

5,416

 

 

6,944

 

 

7,629

 

 

9,881

 

 

15,825

 

Net interest income

59,477

 

 

59,407

 

 

57,824

 

 

58,938

 

 

57,257

 

Provision/(credit) for loan losses 4

(7,004)

 

 

(2,999)

 

 

(4,569)

 

 

22,604

 

 

16,962

 

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

66,481

 

 

62,406

 

 

62,393

 

 

36,334

 

 

40,295

 

 

 

 

 

 

 

 

 

 

 

Wealth management and trust fees 5

19,136

 

 

19,016

 

 

18,240

 

 

17,261

 

 

18,371

 

Investment management fees

489

 

 

1,173

 

 

1,393

 

 

1,770

 

 

1,925

 

Private banking fee income

2,411

 

 

4,304

 

 

1,320

 

 

2,395

 

 

2,490

 

Gain on sale of loans, net

747

 

 

718

 

 

1,006

 

 

204

 

 

100

 

Total core fees and income

22,783

 

 

25,211

 

 

21,959

 

 

21,630

 

 

22,886

 

Total other income

3,387

 

 

1,445

 

 

1,086

 

 

1,032

 

 

(1,365)

 

TOTAL REVENUE 6

85,647

 

 

86,063

 

 

80,869

 

 

81,600

 

 

78,778

 

 

 

 

 

 

 

 

 

 

 

NONINTEREST EXPENSE:

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

40,904

 

 

36,022

 

 

34,671

 

 

33,937

 

 

35,096

 

Occupancy and equipment

8,205

 

 

7,723

 

 

8,150

 

 

7,560

 

 

7,646

 

Information systems

9,719

 

 

8,633

 

 

7,096

 

 

7,113

 

 

6,725

 

Professional services

3,302

 

 

2,744

 

 

4,025

 

 

3,446

 

 

3,601

 

Merger costs

10,665

 

 

—

 

 

—

 

 

—

 

 

—

 

Marketing and business development

624

 

 

1,154

 

 

935

 

 

2,313

 

 

1,890

 

Amortization of intangibles

667

 

 

566

 

 

714

 

 

702

 

 

715

 

FDIC insurance

967

 

 

876

 

 

960

 

 

767

 

 

—

 

Other 4

870

 

 

249

 

 

4,386

 

 

5,615

 

 

5,235

 

TOTAL NONINTEREST EXPENSE

75,923

 

 

57,967

 

 

60,937

 

 

61,453

 

 

60,908

 

 

 

 

 

 

 

 

 

 

 

INCOME/(LOSS) BEFORE INCOME TAXES

16,728

 

 

31,095

 

 

24,501

 

 

(2,457)

 

 

908

 

Income tax expense

6,076

 

 

6,124

 

 

1,821

 

 

841

 

 

102

 

Net income/(loss) before attribution to noncontrolling interests

10,652

 

 

24,971

 

 

22,680

 

 

(3,298)

 

 

806

 

Less: Net income attributable to noncontrolling interests

—

 

 

—

 

 

—

 

 

—

 

 

6

 

NET INCOME/(LOSS) ATTRIBUTABLE TO THE COMPANY

$

10,652

 

 

$

24,971

 

 

$

22,680

 

 

$

(3,298)

 

 

$

800

 

 

 

 

 

 

 

 

 

 

 

Adjustments, treasury stock method 7

—

 

 

—

 

 

—

 

 

—

 

 

414

 

NET INCOME/(LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS

$

10,652

 

 

$

24,971

 

 

$

22,680

 

 

$

(3,298)

 

 

$

1,214

 

 

 

 

 

 

 

 

 

 

 

COMMON SHARE DATA:

 

 

 

 

 

 

 

 

 

Weighted average basic shares outstanding

82,429,162

 

 

82,292,450

 

 

82,221,705

 

 

81,929,752

 

 

83,005,064

 

Weighted average diluted shares outstanding 8

83,934,107

 

 

82,764,339

 

 

82,362,338

 

 

81,929,752

 

 

83,318,041

 

Diluted earnings/(loss) per share

$

0.13

 

 

$

0.30

 

 

$

0.28

 

 

$

(0.04)

 

 

$

0.01

 

 

 

 

 

 

 

 

 

 

 

4 Total Provision for credit losses includes the Provision/(credit) for loan losses and the Reserve for unfunded loan commitments within Other expense. 5 Wealth management and trust fees consists of revenue from Boston Private Wealth LLC ("BPW") and the trust operations of Boston Private Bank & Trust Company.  6 Total revenue is the sum of Net interest income, Total core fees and income, and Total other income. 7 Adjustments to Net income/(loss) attributable to the Company to arrive at Net income/(loss) attributable to common shareholders, treasury stock method, as presented in these tables, include decreases/(increases) in Noncontrolling interests redemption value, if any. 8 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, 2020.

   

BOSTON PRIVATE FINANCIAL HOLDINGS, INC.

 

 

 

 

 

 

 

 

 

Consolidated Financial Highlights

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

1Q21

 

4Q20

 

3Q20

 

2Q20

 

1Q20

KEY STATISTICS:

 

 

 

 

 

 

 

 

 

Return on average assets (non-GAAP) 9

0.42

%

 

1.00

%

 

0.96

%

 

(0.15)

%

 

0.04

%

ROACE (non-GAAP) 9

4.91

%

 

11.50

%

 

10.68

%

 

(1.58)

%

 

0.39

%

ROATCE (non-GAAP) 9

5.58

%

 

12.69

%

 

11.88

%

 

(1.43)

%

 

0.72

%

Efficiency ratio (non-GAAP) 9

87.9

%

 

66.7

%

 

74.5

%

 

74.4

%

 

76.4

%

Noninterest income to total revenue

30.6

%

 

31.0

%

 

28.5

%

 

27.8

%

 

27.3

%

 

 

 

 

 

 

 

 

 

 

Net interest margin

2.45

%

 

2.52

%

 

2.61

%

 

2.75

%

 

2.76

%

Average loan to average deposit ratio

80.6

%

 

86.1

%

 

94.6

%

 

100.5

%

 

99.0

%

Cost of total deposits

0.22

%

 

0.26

%

 

0.33

%

 

0.41

%

 

0.72

%

Cost of interest-bearing deposits

0.30

%

 

0.37

%

 

0.48

%

 

0.59

%

 

1.02

%

Cost of total funding

0.24

%

 

0.32

%

 

0.37

%

 

0.50

%

 

0.83

%

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses / Total loans

1.03

%

 

1.14

%

 

1.17

%

 

1.22

%

 

0.97

%

Nonperforming loans / Total loans

0.36

%

 

0.34

%

 

0.57

%

 

0.35

%

 

0.35

%

Net (charge-offs)/recoveries / Total loans 9

(0.01)

%

 

(0.02)

%

 

(0.01)

%

 

(0.08)

%

 

(0.02)

%

 

 

 

 

 

 

 

 

 

 

CAPITAL HIGHLIGHTS:

 

 

 

 

 

 

 

 

 

Tier 1 common equity 3

$

782,687

 

$

773,017

 

$

752,492

 

$

731,316

 

$

742,044

Tier 1 capital 3

$

882,709

 

$

873,039

 

$

852,514

 

$

831,338

 

$

842,066

Total capital 3

$

961,191

 

$

956,919

 

$

935,887

 

$

913,936

 

$

914,572

 

 

 

 

 

 

 

 

 

 

Risk-weighted assets 3

$

6,877,450

 

$

6,706,524

 

$

6,659,752

 

$

6,593,957

 

$

6,627,339

Average assets for leverage 3

$

10,180,856

 

$

9,790,852

 

$

9,237,942

 

$

9,009,565

 

$

8,691,254

 

 

 

 

 

 

 

 

 

 

Tier 1 common equity ratio 3

11.38

%

 

11.53

%

 

11.30

%

 

11.09

%

 

11.20

%

Tier 1 risk-based capital ratio 3

12.83

%

 

13.02

%

 

12.80

%

 

12.61

%

 

12.71

%

Total risk-based capital ratio 3

13.98

%

 

14.27

%

 

14.05

%

 

13.86

%

 

13.80

%

Tier 1 leverage capital ratio 3

8.67

%

 

8.92

%

 

9.23

%

 

9.23

%

 

9.69

%

 

 

 

 

 

 

 

 

 

 

Total equity / Total assets

8.15

%

 

8.64

%

 

8.97

%

 

9.01

%

 

9.48

%

Tangible common equity / Tangible assets (non-GAAP)

7.57

%

 

8.03

%

 

8.33

%

 

8.34

%

 

8.77

%

 

 

 

 

 

 

 

 

 

 

End of period market price per share

$

13.32

 

 

$

8.45

 

 

$

5.52

 

 

$

6.88

 

 

$

7.15

 

End of period shares outstanding

82,455,432

 

82,334,257

 

82,254,594

 

82,058,483

 

81,800,486

Book value per common share

$

10.41

 

 

$

10.54

 

 

$

10.29

 

 

$

10.06

 

 

$

10.13

 

Tangible book value per share (non-GAAP)

$

9.61

 

 

$

9.73

 

 

$

9.48

 

 

$

9.25

 

 

$

9.31

 

 

 

 

 

 

 

 

 

 

 

Common Equity Repurchase Program:

 

 

 

 

 

 

 

 

 

Total shares of common stock repurchased

—

 

 

—

 

 

—

 

 

—

 

 

1,565,060

 

Average price paid per share of common stock

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

8.18

 

Aggregate repurchases of common stock ($ in millions)

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

12.8

 

 

 

 

 

 

 

 

 

 

 

3 Current quarter information is presented based on estimated data.

9 Annualized.

 

BOSTON PRIVATE FINANCIAL HOLDINGS, INC.

 

 

 

 

 

 

Consolidated AUM and Balance Sheet - End of Period Balances

 

 

 

 

 

 

Unaudited ($ in thousands)

 

 

 

 

 

 

 

 

 

 

1Q21

 

4Q20

 

3Q20

 

2Q20

 

1Q20

ASSETS UNDER MANAGEMENT AND ADVISORY ("AUM"):

 

 

 

 

 

 

 

 

Wealth Management and Trust

$

17,002,000

 

 

$

16,574,000

 

 

$

15,581,000

 

 

$

14,889,000

 

 

$

13,497,000

 

Other 2

196,000

 

 

526,000

 

 

672,000

 

 

1,067,000

 

 

1,016,000

 

TOTAL AUM

$

17,198,000

 

 

$

17,100,000

 

 

$

16,253,000

 

 

$

15,956,000

 

 

$

14,513,000

 

 

 

 

 

 

 

 

 

 

 

AUM Rollforward:

 

 

 

 

 

 

 

 

 

Beginning balance

$

17,100,000

 

 

$

16,253,000

 

 

$

15,956,000

 

 

$

14,513,000

 

 

$

16,768,000

 

Net flows

(408,000)

 

 

(396,000)

 

 

(407,000)

 

 

(40,000)

 

 

150,000

 

Market returns

506,000

 

 

1,243,000

 

 

704,000

 

 

1,483,000

 

 

(2,405,000)

 

Ending balance

$

17,198,000

 

 

$

17,100,000

 

 

$

16,253,000

 

 

$

15,956,000

 

 

$

14,513,000

 

 

 

 

 

 

 

 

 

 

 

AUM Net Flows:

 

 

 

 

 

 

 

 

 

Wealth Management and Trust

$

(20,000)

 

 

$

(128,000)

 

 

$

(12,000)

 

 

$

60,000

 

 

$

176,000

 

Other 2

(388,000)

 

 

(268,000)

 

 

(395,000)

 

 

(100,000)

 

 

(26,000)

 

TOTAL NET FLOWS

$

(408,000)

 

 

$

(396,000)

 

 

$

(407,000)

 

 

$

(40,000)

 

 

$

150,000

 

 

 

 

 

 

 

 

 

 

 

DEPOSITS:

 

 

 

 

 

 

 

 

 

Demand deposits (noninterest bearing)

$

2,651,733

 

 

$

2,481,676

 

 

$

2,346,126

 

 

$

2,293,864

 

 

$

2,020,440

 

Savings and NOW

906,892

 

 

905,692

 

 

756,797

 

 

758,656

 

 

653,006

 

Money market

5,106,911

 

 

4,699,882

 

 

4,187,657

 

 

3,753,228

 

 

3,468,701

 

Certificates of deposit

482,082

 

 

508,116

 

 

537,139

 

 

621,649

 

 

693,425

 

TOTAL DEPOSITS

$

9,147,618

 

 

$

8,595,366

 

 

$

7,827,719

 

 

$

7,427,397

 

 

$

6,835,572

 

 

 

 

 

 

 

 

 

 

 

LOANS:

 

 

 

 

 

 

 

 

 

Commercial and industrial

$

668,217

 

 

$

558,343

 

 

$

583,145

 

 

$

565,748

 

 

$

670,744

 

Paycheck Protection Program

351,170

 

 

312,356

 

 

371,496

 

 

370,034

 

 

—

 

Commercial tax-exempt

488,507

 

 

442,159

 

 

472,342

 

 

419,264

 

 

445,319

 

Commercial real estate

2,697,677

 

 

2,757,375

 

 

2,659,890

 

 

2,676,708

 

 

2,626,299

 

Construction and land

181,482

 

 

159,204

 

 

211,697

 

 

240,211

 

 

238,293

 

Residential

2,632,554

 

 

2,677,464

 

 

2,729,164

 

 

2,859,627

 

 

2,841,926

 

Home equity

71,752

 

 

77,364

 

 

81,797

 

 

84,588

 

 

89,350

 

Consumer and other

124,966

 

 

120,044

 

 

113,038

 

 

116,774

 

 

131,407

 

TOTAL LOANS

$

7,216,325

 

 

$

7,104,309

 

 

$

7,222,569

 

 

$

7,332,954

 

 

$

7,043,338

 

 

 

 

 

 

 

 

 

 

 

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

   

BOSTON PRIVATE FINANCIAL HOLDINGS, INC.

Provision and Asset Quality

 

 

 

 

 

 

 

 

 

Unaudited ($ in thousands)

 

 

 

 

 

 

 

 

 

 

1Q21

 

4Q20

 

3Q20

 

2Q20

 

1Q20

PROVISION:

 

 

 

 

 

 

 

 

 

Provision/(credit) for loan losses

$

(7,004)

 

 

$

(2,999)

 

 

$

(4,569)

 

 

$

22,604

 

 

$

16,962

 

Reserve for unfunded loan commitments 4

(2,016)

 

 

(2,386)

 

 

1,750

 

 

2,829

 

 

1,827

 

TOTAL PROVISION/(CREDIT) FOR CREDIT LOSSES

$

(9,020)

 

 

$

(5,385)

 

 

$

(2,819)

 

 

$

25,433

 

 

$

18,789

 

 

 

 

 

 

 

 

 

 

 

CHARGE-OFFS:

 

 

 

 

 

 

 

 

 

Loan charge-offs

$

(297)

 

 

$

(511)

 

 

$

(245)

 

 

$

(1,546)

 

 

$

(528)

 

Loan recoveries

73

 

 

197

 

 

41

 

 

55

 

 

180

 

NET (CHARGE-OFFS)/RECOVERIES

$

(224)

 

 

$

(314)

 

 

$

(204)

 

 

$

(1,491)

 

 

$

(348)

 

Net charge-offs to average loans (annualized)

(0.01)

%

 

(0.02)

%

 

(0.01)

%

 

(0.08)

%

 

(0.02)

%

 

 

 

 

 

 

 

 

 

 

Net (Charge-offs)/Recoveries by Loan Type:

 

 

 

 

 

 

 

 

 

Commercial and industrial

$

(258)

 

 

$

(474)

 

 

$

(136)

 

 

$

(337)

 

 

$

(473)

 

Commercial real estate

—

 

 

160

 

 

—

 

 

—

 

 

—

 

Residential

3

 

 

—

 

 

—

 

 

—

 

 

—

 

Home equity

—

 

 

—

 

 

—

 

 

(1,157)

 

 

132

 

Consumer and other

31

 

 

—

 

 

(68)

 

 

3

 

 

(7)

 

NET (CHARGE-OFFS)/RECOVERIES

$

(224)

 

 

$

(314)

 

 

$

(204)

 

 

$

(1,491)

 

 

$

(348)

 

 

 

 

 

 

 

 

 

 

 

LOAN QUALITY DATA:

 

 

 

 

 

 

 

 

 

Special mention loans

$

152,472

 

 

$

187,237

 

 

$

199,509

 

 

$

191,882

 

 

$

92,623

 

 

 

 

 

 

 

 

 

 

 

Accruing classified loans 10

136,130

 

 

106,883

 

 

81,827

 

 

88,586

 

 

87,948

 

Nonaccrual loans

25,764

 

 

23,851

 

 

41,263

 

 

25,604

 

 

24,314

 

Total classified

161,894

 

 

130,734

 

 

123,090

 

 

114,190

 

 

112,262

 

Criticized and classified loans

$

314,366

 

 

$

317,971

 

 

$

322,599

 

 

$

306,072

 

 

$

204,885

 

 

 

 

 

 

 

 

 

 

 

Loans 30-89 days past due and accruing 11

$

7,249

 

 

$

19,862

 

 

$

5,635

 

 

$

5,535

 

 

$

14,852

 

 

 

 

 

 

 

 

 

 

 

4 Total Provision/(credit) for credit losses includes the Provision/(credit) for loan losses and the Reserve for unfunded loan commitments within Other expense. 10 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. 11 At June 30, 2020, the Company had one loan totaling less than $0.1 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 other 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

 

1Q21

4Q20

1Q20

 

1Q21

4Q20

1Q20

 

1Q21

4Q20

1Q20

INTEREST-EARNING ASSETS

 

 

 

 

 

 

 

 

 

 

 

Cash and investments:

 

 

 

 

 

 

 

 

 

 

 

Taxable investment securities

$

203,856

 

$

209,143

 

$

201,174

 

 

$

782

 

$

849

 

$

868

 

 

1.54

%

1.62

%

1.73

%

Non-taxable investment securities

322,057

 

318,291

 

315,681

 

 

2,045

 

1,973

 

1,998

 

 

2.54

%

2.48

%

2.53

%

Mortgage-backed securities

810,754

 

598,616

 

520,629

 

 

3,437

 

2,585

 

2,787

 

 

1.70

%

1.73

%

2.14

%

Short-term investments and other

1,238,677

 

976,344

 

147,482

 

 

593

 

687

 

1,071

 

 

0.19

%

0.28

%

2.89

%

Total cash and investments

2,575,344

 

2,102,394

 

1,184,966

 

 

6,857

 

6,094

 

6,724

 

 

1.07

%

1.16

%

2.27

%

Loans: 12

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

1,034,369

 

1,035,783

 

1,148,986

 

 

8,352

 

8,504

 

10,724

 

 

3.23

%

3.21

%

3.69

%

Paycheck Protection Program

326,695

 

348,827

 

—

 

 

3,629

 

3,798

 

—

 

 

4.44

%

4.26

%

—

%

Commercial real estate

2,723,249

 

2,711,396

 

2,582,305

 

 

23,187

 

24,096

 

27,482

 

 

3.41

%

3.48

%

4.21

%

Construction and land

165,350

 

171,873

 

233,324

 

 

1,605

 

1,642

 

2,572

 

 

3.88

%

3.74

%

4.36

%

Residential

2,667,440

 

2,720,733

 

2,850,833

 

 

20,226

 

21,041

 

23,468

 

 

3.03

%

3.09

%

3.29

%

Home equity

76,336

 

79,485

 

86,048

 

 

551

 

676

 

952

 

 

2.93

%

3.38

%

4.45

%

Consumer and other

121,900

 

121,139

 

132,237

 

 

486

 

500

 

1,160

 

 

1.62

%

1.64

%

3.53

%

Total loans

7,115,339

 

7,189,236

 

7,033,733

 

 

58,036

 

60,257

 

66,358

 

 

3.26

%

3.31

%

3.75

%

Total earning assets

9,690,683

 

9,291,630

 

8,218,699

 

 

64,893

 

66,351

 

73,082

 

 

2.68

%

2.82

%

3.54

%

 

 

 

 

 

 

 

 

 

 

 

 

LESS: Allowance for loan losses

81,125

 

84,679

 

51,730

 

 

 

 

 

 

 

 

 

Cash and due from banks

38,897

 

38,732

 

49,571

 

 

 

 

 

 

 

 

 

Other assets

631,970

 

651,008

 

562,851

 

 

 

 

 

 

 

 

 

TOTAL AVERAGE ASSETS

$

10,280,425

 

$

9,896,691

 

$

8,779,391

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INTEREST-BEARING LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits: 13

 

 

 

 

 

 

 

 

 

 

 

Savings and NOW

$

877,100

 

$

793,923

 

$

638,926

 

 

$

180

 

$

200

 

$

232

 

 

0.08

%

0.10

%

0.15

%

Money market

4,911,146

 

4,551,046

 

3,753,045

 

 

3,831

 

4,255

 

9,657

 

 

0.32

%

0.37

%

1.03

%

Certificates of deposit

489,037

 

522,567

 

668,818

 

 

680

 

981

 

2,907

 

 

0.56

%

0.75

%

1.75

%

Total interest-bearing deposits 13

6,277,283

 

5,867,536

 

5,060,789

 

 

4,691

 

5,436

 

12,796

 

 

0.30

%

0.37

%

1.02

%

Junior subordinated debentures

106,363

 

106,363

 

106,363

 

 

481

 

481

 

917

 

 

1.81

%

1.77

%

3.41

%

FHLB borrowings and other

180,234

 

267,865

 

455,813

 

 

244

 

1,027

 

2,112

 

 

0.54

%

1.50

%

1.83

%

Total interest-bearing liabilities 13

6,563,880

 

6,241,764

 

5,622,965

 

 

5,416

 

6,944

 

15,825

 

 

0.33

%

0.44

%

1.13

%

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest bearing demand deposits 13

2,551,651

 

2,482,969

 

2,046,102

 

 

 

 

 

 

 

 

 

Payables and other liabilities

285,453

 

310,820

 

270,371

 

 

 

 

 

 

 

 

 

Total average liabilities

9,400,984

 

9,035,553

 

7,939,438

 

 

 

 

 

 

 

 

 

Redeemable noncontrolling interests

—

 

—

 

1,018

 

 

 

 

 

 

 

 

 

Average shareholders’ equity

879,441

 

861,138

 

838,935

 

 

 

 

 

 

 

 

 

TOTAL AVERAGE LIABILITIES, RNCI, AND SHAREHOLDERS’ EQUITY

$

10,280,425

 

$

9,896,691

 

$

8,779,391

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

 

$

59,477

 

$

59,407

 

$

57,257

 

 

 

 

 

Interest rate spread

 

 

 

 

 

 

 

 

2.35

%

2.38

%

2.41

%

Net interest margin

 

 

 

 

 

 

 

 

2.45

%

2.52

%

2.76

%

 

 

 

 

 

 

 

 

 

 

 

 

Average total deposits 13

$

8,828,934

 

$

8,350,505

 

$

7,106,891

 

 

 

 

 

 

0.22

%

0.26

%

0.72

%

Average total deposits and borrowings 13

$

9,115,531

 

$

8,724,733

 

$

7,669,067

 

 

 

 

 

 

0.24

%

0.32

%

0.83

%

 

 

 

 

 

 

 

 

 

 

 

 

12 Average loans includes Loans held for sale and Nonaccrual loans 13 Average total deposits is the sum of Average total interest-bearing deposits and Average noninterest 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 14

 

 

 

 

 

 

 

 

Unaudited ($ in thousands)

 

 

 

 

 

 

 

 

 

1Q21

 

4Q20

 

3Q20

 

2Q20

 

1Q20

New England

$

3,735,757

 

 

$

3,593,925

 

 

$

3,669,746

 

 

$

3,781,603

 

 

$

3,724,959

 

Northern California

1,759,812

 

 

1,776,682

 

 

1,763,556

 

 

1,741,255

 

 

1,618,668

 

Southern California

1,720,756

 

 

1,733,702

 

 

1,789,267

 

 

1,810,096

 

 

1,699,711

 

Total loans

$

7,216,325

 

 

$

7,104,309

 

 

$

7,222,569

 

 

$

7,332,954

 

 

$

7,043,338

 

 

 

 

 

 

 

 

 

 

 

Loans (charged-off)/recovered, net:

 

 

 

 

 

 

 

 

 

New England

$

20

 

 

$

162

 

 

$

(111)

 

 

$

7

 

 

$

15

 

Northern California

9

 

 

(147)

 

 

—

 

 

3

 

 

122

 

Southern California

(253)

 

 

(329)

 

 

(93)

 

 

(1,501)

 

 

(485)

 

Total net loans (charged-off)/recovered

$

(224)

 

 

$

(314)

 

 

$

(204)

 

 

$

(1,491)

 

 

$

(348)

 

 

 

 

 

 

 

 

 

 

 

Special mention loans:

 

 

 

 

 

 

 

 

 

New England

$

72,359

 

 

$

94,235

 

 

$

103,060

 

 

$

83,026

 

 

$

61,741

 

Northern California

57,751

 

 

64,361

 

 

63,192

 

 

75,609

 

 

5,947

 

Southern California

22,362

 

 

28,641

 

 

33,257

 

 

33,247

 

 

24,935

 

Total special mention loans

$

152,472

 

 

$

187,237

 

 

$

199,509

 

 

$

191,882

 

 

$

92,623

 

 

 

 

 

 

 

 

 

 

 

Accruing classified loans:

 

 

 

 

 

 

 

 

 

New England

$

106,375

 

 

$

89,582

 

 

$

74,682

 

 

$

53,124

 

 

$

50,483

 

Northern California

13,147

 

 

340

 

 

4,589

 

 

21,712

 

 

24,843

 

Southern California

16,608

 

 

16,961

 

 

2,556

 

 

13,750

 

 

12,622

 

Total accruing classified loans

$

136,130

 

 

$

106,883

 

 

$

81,827

 

 

$

88,586

 

 

$

87,948

 

 

 

 

 

 

 

 

 

 

 

Nonaccruing loans:

 

 

 

 

 

 

 

 

 

New England

$

14,197

 

 

$

12,643

 

 

$

11,807

 

 

$

11,630

 

 

$

11,965

 

Northern California

6,791

 

 

6,331

 

 

25,133

 

 

9,459

 

 

6,575

 

Southern California

4,776

 

 

4,877

 

 

4,323

 

 

4,515

 

 

5,774

 

Total nonaccruing loans

$

25,764

 

 

$

23,851

 

 

$

41,263

 

 

$

25,604

 

 

$

24,314

 

 

 

 

 

 

 

 

 

 

 

14 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, except share and per share data)

 

 

 

 

 

 

 

 

 

1Q21

 

4Q20

 

3Q20

 

2Q20

 

1Q20

ROACE AND ROATCE:

 

 

 

 

 

 

 

 

 

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

$

10,652

 

$

24,971

 

$

22,680

 

$

(3,298)

 

$

800

ADD: Amortization of intangibles, net of tax

527

 

447

 

564

 

555

 

565

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

$

11,179

 

$

25,418

 

$

23,244

 

$

(2,743)

 

$

1,365

 

 

 

 

 

 

 

 

 

 

Total average shareholders’ equity (C)

$

879,441

 

$

861,138

 

$

842,606

 

$

834,882

 

$

838,935

LESS: Average goodwill and intangibles, net

(66,351)

 

(66,253)

 

(66,246)

 

(66,877)

 

(67,586)

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

$

813,090

 

$

794,885

 

$

776,360

 

$

768,005

 

$

771,349

 

 

 

 

 

 

 

 

 

 

ROACE (annualized) (A/C)

4.91 %

 

11.50%

 

10.68%

 

(1.58)%

 

0.39%

ROATCE (annualized) (B/D)

5.58 %

 

12.69%

 

11.88%

 

(1.43)%

 

0.72%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PRE-TAX, PRE-PROVISION INCOME:

 

 

 

 

 

 

 

 

 

Income/(loss) before income taxes (GAAP)

$

16,728

 

$

31,095

 

$

24,501

 

$

(2,457)

 

$

908

ADD BACK: Provision/(credit) for loan losses

(7,004)

 

(2,999)

 

(4,569)

 

22,604

 

16,962

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

$

9,724

 

$

28,096

 

$

19,932

 

$

20,147

 

$

17,870

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TANGIBLE COMMON EQUITY:

 

 

 

 

 

 

 

 

 

Total shareholders’ equity (GAAP)

$

858,423

 

$

868,008

 

$

846,169

 

$

825,205

 

$

828,792

LESS: Goodwill and intangibles, net

(65,996)

 

(66,663)

 

(66,505)

 

(66,542)

 

(67,244)

Tangible common equity (non-GAAP) (A)

$

792,427

 

$

801,345

 

$

779,664

 

$

758,663

 

$

761,548

 

 

 

 

 

 

 

 

 

 

Total assets (GAAP)

$

10,538,492

 

$

10,048,733

 

$

9,431,305

 

$

9,158,906

 

$

8,746,326

LESS: Goodwill and intangibles, net

(65,996)

 

(66,663)

 

(66,505)

 

(66,542)

 

(67,244)

Tangible assets (non-GAAP) (B)

$

10,472,496

 

$

9,982,070

 

$

9,364,800

 

$

9,092,364

 

$

8,679,082

 

 

 

 

 

 

 

 

 

 

End of period shares outstanding (C)

82,455,432

 

82,334,257

 

82,254,594

 

82,058,483

 

81,800,486

 

 

 

 

 

 

 

 

 

 

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

7.57 %

 

8.03%

 

8.33%

 

8.34%

 

8.77%

Tangible book value per share (non-GAAP) (A/C)

$9.61

 

$9.73

 

$9.48

 

$9.25

 

$9.31

 

 

 

 

 

 

 

 

 

 

AVERAGE LOANS:

 

 

 

 

 

 

 

 

 

Total loans

$

7,115,339

 

$

7,189,236

 

$

7,282,598

 

$

7,288,644

 

$

7,033,733

LESS: PPP

(326,695)

 

(348,827)

 

(373,047)

 

(283,619)

 

—

Total loans, excluding PPP (non-GAAP)

$

6,788,644

 

$

6,840,409

 

$

6,909,551

 

$

7,005,025

 

$

7,033,733

 

 

 

 

 

 

 

 

 

 

Total loan yields, excluding PPP (non-GAAP)

3.21 %

 

3.26%

 

3.27%

 

3.47%

 

3.75%

 

 

 

 

 

 

 

 

 

 

 

 

BOSTON PRIVATE FINANCIAL HOLDINGS, INC.

 

 

 

 

 

 

 

 

Reconciliations of Non-GAAP Financial Measures

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

1Q21

 

4Q20

 

3Q20

 

2Q20

 

1Q20

RETURN ON AVERAGE ASSETS:

 

 

 

 

 

 

 

 

 

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

$

10,652

 

$

24,971

 

$

22,680

 

$

(3,298)

 

$

800

Average assets (non-GAAP) (B)

10,280,425

 

9,896,691

 

9,346,563

 

9,109,201

 

8,779,391

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

0.42 %

 

1.00%

 

0.96%

 

(0.15)%

 

0.04%

 

 

 

 

 

 

 

 

 

 

EFFICIENCY RATIO:

 

 

 

 

 

 

 

 

 

Total noninterest expense (GAAP) (A)

$

75,923

 

$

57,967

 

$

60,937

 

$

61,453

 

$

60,908

LESS: Amortization of intangibles

667

 

566

 

714

 

702

 

715

Total noninterest expense, excluding Amortization of intangibles (non-GAAP) (B)

$

75,256

 

$

57,401

 

$

60,223

 

$

60,751

 

$

60,193

 

 

 

 

 

 

 

 

 

 

Net interest income (GAAP)

$

59,477

 

$

59,407

 

$

57,824

 

$

58,938

 

$

57,257

Total core fees and income (GAAP)

22,783

 

25,211

 

21,959

 

21,630

 

22,886

Total other income (GAAP)

3,387

 

1,445

 

1,086

 

1,032

 

(1,365)

Total revenue (GAAP) (C)

$

85,647

 

$

86,063

 

$

80,869

 

$

81,600

 

$

78,778

 

 

 

 

 

 

 

 

 

 

Efficiency ratio (GAAP) (A/C)

88.6 %

 

67.4%

 

75.4%

 

75.3%

 

77.3%

Efficiency ratio, excluding Amortization of intangibles (non-GAAP) (B/C)

87.9 %

 

66.7%

 

74.5%

 

74.4%

 

76.4%

 

 

 

 

 

 

 

 

 

 

NET INCOME/(LOSS) ATTRIBUTABLE TO THE COMPANY:

 

 

 

 

 

 

 

 

 

Net income/(loss) attributable to the Company (GAAP)

$

10,652

 

$

24,971

 

$

22,680

 

$

(3,298)

 

$

800

LESS: Gain on fair value of contingent considerations receivable 15

—

 

—

 

891

 

—

 

—

Tax effect at statutory rate

—

 

—

 

258

 

—

 

—

Net income/(loss) attributable to the Company (non-GAAP)

$

10,652

 

$

24,971

 

$

22,047

 

$

(3,298)

 

$

800

 

 

 

 

 

 

 

 

 

 

NET INCOME/(LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS:

Net income/(loss) attributable to common shareholders (GAAP)

$

10,652

 

$

24,971

 

$

22,680

 

$

(3,298)

 

$

1,214

LESS: Gain on fair value of contingent considerations receivable 15

—

 

—

 

891

 

—

 

—

Tax effect at statutory rate

—

 

—

 

258

 

—

 

—

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

$

10,652

 

$

24,971

 

$

22,047

 

$

(3,298)

 

$

1,214

 

 

 

 

 

 

 

 

 

 

Weighted average diluted shares outstanding

83,934,107

 

82,764,339

 

82,362,338

 

81,929,752

 

83,318,041

Diluted earnings/(loss) per share (GAAP)

$

0.13

 

$

0.30

 

$

0.28

 

$

(0.04)

 

$

0.01

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

$

0.13

 

$

0.30

 

$

0.27

 

$

(0.04)

 

$

0.01

 

 

 

 

 

 

 

 

 

 

Average common equity (non-GAAP)

$

879,441

 

$

861,138

 

$

842,606

 

$

834,882

 

$

838,935

Average tangible common equity (non-GAAP)

$

813,090

 

$

794,885

 

$

776,360

 

$

768,005

 

$

771,349

ROACE, excluding notable items (non-GAAP)

4.91 %

 

11.50%

 

10.38%

 

(1.58)%

 

0.39%

ROATCE, excluding notable items (non-GAAP)

5.58 %

 

12.69%

 

11.55%

 

(1.43)%

 

0.72%

 

 

 

 

 

 

 

 

 

 

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

$

9,724

 

$

28,096

 

$

19,932

 

$

20,147

 

$

17,870

LESS: Gain on fair value of contingent considerations receivable 15

—

 

—

 

891

 

—

 

—

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

$

9,724

 

$

28,096

 

$

19,041

 

$

20,147

 

$

17,870

 

 

 

 

 

 

 

 

 

 

15 In the third quarter of 2020, there was a gain of $0.9 million related to the revaluation of a receivable from the divestiture of a former affiliate, Bingham, Osborn & Scarborough, LLC ("BOS").

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20210422006045/en/

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