BOSTON--(BUSINESS WIRE)--Boston Private Financial Holdings, Inc. (NASDAQ: BPFH) (the “Company” or “BPFH”) today reported third quarter 2017 GAAP Net Income Attributable to the Company of $19.8 million, compared to $23.4 million for the second quarter of 2017 and $19.6 million for the third quarter of 2016. Third quarter 2017 diluted earnings per share were $0.22, compared to $0.27 in the second quarter of 2017, and $0.22 in the third quarter of 2016.
“Our Company demonstrated good underlying business performance during the third quarter,” said Clayton G. Deutsch, CEO. “Our Private Bank delivered strong year-over-year revenue growth driven by double-digit net interest income growth and core Net Interest Margin expansion. Our Wealth Management & Trust segment recorded a fourth consecutive quarter of improvement in net flows and a second consecutive quarter of positive EBITDA, while our Wealth Advisory and Investment Management segments delivered sequential earnings improvement and margins above our targets.”
Core Fees and Income/Assets Under Management
Total Core Fees and Income for the third quarter were $39.1 million, a 5% increase on a linked quarter basis and a 3% increase year-over-year. The increase reflects higher levels of AUM in the Wealth Management & Trust, Investment Management, and Wealth Advisory segments on both a linked quarter basis and year-over-year basis. Private Banking fees increased linked quarter, while decreasing year-over-year due to changes in swap fee income.
AUM was $29.8 billion at the end of the third quarter, an increase of 2% from the previous quarter and 8% year-over-year. AUM increased due to positive market action, partially offset by negative net flows. The Company experienced net flows of negative $109 million during the third quarter, compared to negative $180 million and negative $336 million in the second quarter of 2017 and third quarter of 2016, respectively. During the third quarter, net flows by segment were $114 million for Wealth Management & Trust, negative $152 million for Investment Management, and negative $71 million for Wealth Advisory.
Net Interest Income
Net Interest Income for the third quarter was $56.6 million, a decrease of 1% from $57.1 million for the second quarter of 2017 and an increase of 14% from $49.9 million for the third quarter of 2016. The current quarter includes $0.1 million of interest recovered on previous nonaccrual loans compared to $2.0 million for the second quarter and $0.3 million for the third quarter of 2016. Excluding interest recovered on previous nonaccrual loans, Net Interest Income on an FTE basis increased 2% linked quarter and 14% year-over-year.
Net Interest Margin was 3.02% for the third quarter of 2017, a decrease of 5 basis points from the second quarter of 2017 and an increase of 14 basis points from the third quarter of 2016. Excluding interest recovered on previous nonaccrual loans, Net Interest Margin for the third quarter was 3.02%, an increase of 5 basis points from the second quarter of 2017 and an increase of 16 basis points from the third quarter of 2016.
Total Operating Expense
Total Operating Expense for the third quarter of 2017 was $69.3 million, up 2% linked quarter from $67.8 million and 12% year-over-year primarily due to increased compensation expense and technology initiatives.
Provision and Asset Quality
The Company recorded a provision credit of $0.4 million for the third quarter of 2017, compared to a provision credit of $6.1 million for the second quarter of 2017 and $0.1 million for the third quarter of 2016. The provision credit in the third quarter of 2017 was due to net recoveries and improved loss factors, partially offset by an increase in Criticized Loans and loan growth.
Criticized Loans as of September 30, 2017 were $146.0 million, an increase of 13% linked quarter and a decrease of 8% year-over-year. Nonaccrual Loans (“Nonaccruals”) as of September 30, 2017 were $13.6 million, a decrease of 16% linked quarter and 17% year-over-year. As a percentage of Total Loans, Nonaccruals were 21 basis points as of September 30, 2017, down 5 basis points compared to June 30, 2017, and down 7 basis points from September 30, 2016.
Additional credit metrics are listed below:
(In millions) |
September 30, 2017 |
June 30, 2017 |
March 31, 2017 |
December 31, 2016 |
September 30, 2016 |
||||||||||||||||||||
Total Criticized Loans | $ | 146.0 | $ | 129.5 | $ | 135.1 | $ | 118.5 | $ | 158.8 | |||||||||||||||
Total Loans 30-89 Days Past Due and Accruing (13) | $ | 5.3 | $ | 3.2 | $ | 28.7 | $ | 15.1 | $ | 4.6 | |||||||||||||||
Total Net Loans (Charged-off)/ Recovered | $ | 0.3 | $ | 3.1 | $ | 0.1 | $ | 1.5 | $ | 2.1 | |||||||||||||||
Allowance for Loan Losses/
Total Loans |
1.17 | % | 1.19 | % | 1.25 | % | 1.28 | % | 1.32 | % | |||||||||||||||
Capital Ratios
The Company's capital ratios are listed below:
September 30, 2017 |
June 30, 2017 |
March 31, 2017 |
December 31, 2016 |
September 30, 2016 |
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BPFH Ratios: | ||||||||||||||||||||
Total Risk-Based Capital * | 14.3 | % | 14.1 | % | 13.8 | % | 13.9 | % | 14.0 | % | ||||||||||
Tier I Risk-Based Capital * | 13.0 | % | 12.9 | % | 12.6 | % | 12.6 | % | 12.7 | % | ||||||||||
Tier I Leverage Capital * | 9.4 | % | 9.3 | % | 9.2 | % | 9.4 | % | 9.5 | % | ||||||||||
TCE/TA (4) | 7.4 | % | 7.4 | % | 7.0 | % | 7.1 | % | 7.4 | % | ||||||||||
Tier I Common Equity/
Risk Weighted Assets * |
10.4 | % | 10.3 | % | 10.0 | % | 10.0 | % | 10.0 | % |
*September 30, 2017 information is presented based on estimated data.
Dividend Payments
Concurrent with the
release of third quarter 2017 earnings, the Board of Directors of the
Company declared a cash dividend to common shareholders of $0.11 per
share. The record date for this dividend is November 3, 2017, and the
payment date is November 17, 2017.
The Board of Directors of the Company also declared a cash dividend to holders of the Non-Cumulative Perpetual Preferred Stock, Series D of $17.375 per share, which will result in a dividend of $0.434375 per depositary share. The record date for this dividend is November 15, 2017, and the payment date is December 15, 2017.
Non-GAAP Financial 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 tangible book value per share; the TCE/TA ratio; return on average common equity; return on average tangible common equity; pre-tax, pre-provision income; total operating expense excluding intangibles, goodwill impairment, and restructuring; the efficiency ratio (FTE basis); the efficiency ratio (FTE basis) excluding amortization of intangibles, goodwill impairment, and restructuring; net income attributable to the Company excluding notable items; diluted earnings per share excluding notable items; and net interest income and net interest margin excluding interest recovered on previous nonaccrual loans, also referred to as core net interest margin.
A detailed reconciliation table of the Company's GAAP to non-GAAP measures is attached.
Conference Call
Management will hold a
conference call at 8 a.m. Eastern Time on Thursday, October 19, 2017, to
discuss the financial results, business highlights and outlook. To
access the call:
Dial In #: (888) 317-6003
Elite Entry Number: 5396726
Replay Information:
Available from October 19, 2017 at 12 noon
until October 26, 2017
Dial In #: (877) 344-7529
Conference
Number: 10112880
The call will be simultaneously webcast and may be accessed on www.bostonprivate.com.
Boston Private Financial Holdings, Inc.
Boston
Private Financial Holdings, Inc. is a national financial services
organization that owns Wealth Management, Trust, and Private Banking
affiliates with offices in Boston, New York, Los Angeles, San Francisco,
San Jose, Florida, and Wisconsin. The Company has total assets of
approximately $8 billion, and manages over $29 billion of client assets.
The Company's affiliates serve the high net worth marketplace with high quality products and services of unique appeal to private clients. The Company also provides strategic oversight and access to resources, both financial and intellectual, to support affiliate management, marketing, compliance and legal activities. (NASDAQ: BPFH)
For more information about BPFH, visit the Company's website at www.bostonprivate.com.
Forward-Looking Statements
Certain
statements in this press release that are not historical facts may
constitute forward-looking statements within the meaning of Section 27A
of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, and are intended to be
covered by the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements involve risks
and uncertainties. These statements include, among others, statements
regarding our strategy, evaluations of future interest rate trends and
liquidity, prospects for growth in assets, and prospects for overall
results over the long term. You should not place undue reliance on our
forward-looking statements. You should exercise caution in interpreting
and relying on forward-looking statements because they are subject to
significant risks, uncertainties and other factors which are, in some
cases, beyond the Company's control. Forward-looking statements are
based on the current assumptions and beliefs of management and are only
expectations of future results. The Company's actual results could
differ materially from those projected in the forward-looking statements
as a result of, among other factors, adverse conditions in the capital
and debt markets and the impact of such conditions on the Company's
private banking, investment management, wealth advisory, and trust
activities; changes in interest rates; competitive pressures from other
financial institutions; the effects of weakness in general economic
conditions on a national basis or in the local markets in which the
Company operates; changes in loan defaults and charge-off rates; changes
in the value of securities and other assets, adequacy of loan loss
reserves, or decreases in deposit levels necessitating increased
borrowing to fund loans and investments; operational risks including,
but not limited to, cybersecurity, fraud and natural disasters; changes
in government regulation; the risk that goodwill and intangibles
recorded in the Company's financial statements will become impaired; the
risk that the Company's deferred tax asset may not be realized; risks
related to the identification and implementation of acquisitions,
dispositions and restructurings; changes in assumptions used in making
such forward-looking statements; and the other risks and uncertainties
detailed in the Company's Annual Report on Form 10-K and updated by the
Company's Quarterly Reports on Form 10-Q and other filings submitted to
the Securities and Exchange Commission. Forward-looking statements speak
only as of the date on which they are made. The Company does not
undertake any obligation to update any forward-looking statement to
reflect circumstances or events that occur after the date the
forward-looking statement is made.
Note to Editors:
Boston Private
Financial Holdings, Inc. is not to be confused with Boston Private Bank
& Trust Company. Boston Private Bank & Trust Company is a wholly-owned
subsidiary of BPFH. The information reported in this press release is
related to the performance and results of BPFH.
Boston Private Financial Holdings, Inc. Selected Financial Data (Unaudited) |
||||||||||||||||||||||||
September 30, 2017 |
June 30, 2017 |
March 31, 2017 |
December 31, 2016 |
September 30, 2016 |
||||||||||||||||||||
(In thousands, except share and per share data) | ||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 110,440 | $ | 97,032 | $ | 165,186 | $ | 106,557 | $ | 67,631 | ||||||||||||||
Investment securities available-for-sale | 1,189,827 | 1,188,720 | 1,256,208 | 1,264,132 | 1,249,578 | |||||||||||||||||||
Investment securities held-to-maturity | 84,090 | 99,024 | 98,424 | 93,079 | 98,881 | |||||||||||||||||||
Stock in Federal Home Loan Bank and Federal Reserve Bank | 61,714 | 45,568 | 50,133 | 44,077 | 36,084 | |||||||||||||||||||
Loans held for sale | 1,957 | 2,870 | 350 | 3,464 | 5,316 | |||||||||||||||||||
Total loans | 6,413,201 | 6,279,928 | 6,250,217 | 6,114,354 | 5,869,498 | |||||||||||||||||||
Less: Allowance for loan losses | 74,873 | 75,009 | 78,031 | 78,077 | 77,669 | |||||||||||||||||||
Net loans | 6,338,328 | 6,204,919 | 6,172,186 | 6,036,277 | 5,791,829 | |||||||||||||||||||
Other real estate owned (“OREO”) | — | — | — | 1,690 | 1,800 | |||||||||||||||||||
Premises and equipment, net | 36,546 | 34,135 | 32,974 | 31,827 | 32,089 | |||||||||||||||||||
Goodwill | 142,554 | 142,554 | 142,554 | 142,554 | 152,082 | |||||||||||||||||||
Intangible assets, net | 22,447 | 23,873 | 25,299 | 26,725 | 28,267 | |||||||||||||||||||
Fees receivable | 12,560 | 12,639 | 12,230 | 13,400 | 11,185 | |||||||||||||||||||
Accrued interest receivable | 21,823 | 20,680 | 20,790 | 20,479 | 18,062 | |||||||||||||||||||
Deferred income taxes, net | 46,088 | 49,827 | 53,686 | 55,460 | 39,319 | |||||||||||||||||||
Other assets | 201,024 | 185,805 | 185,100 | 130,753 | 149,427 | |||||||||||||||||||
Total assets | $ | 8,269,398 | $ | 8,107,646 | $ | 8,215,120 | $ | 7,970,474 | $ | 7,681,550 | ||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Deposits | $ | 6,262,347 | $ | 6,381,339 | $ | 6,246,620 | $ | 6,085,146 | $ | 5,812,243 | ||||||||||||||
Deposits held for sale | — | — | — | — | 105,788 | |||||||||||||||||||
Securities sold under agreements to repurchase | 59,903 | 29,232 | 67,249 | 59,624 | 77,466 | |||||||||||||||||||
Federal funds purchased | 70,000 | 40,000 | — | 80,000 | 125,000 | |||||||||||||||||||
Federal Home Loan Bank borrowings | 812,773 | 618,989 | 885,445 | 734,205 | 522,681 | |||||||||||||||||||
Junior subordinated debentures | 106,363 | 106,363 | 106,363 | 106,363 | 106,363 | |||||||||||||||||||
Other liabilities | 127,069 | 115,088 | 110,310 | 119,683 | 134,322 | |||||||||||||||||||
Total liabilities | 7,438,455 | 7,291,011 | 7,415,987 | 7,185,021 | 6,883,863 | |||||||||||||||||||
Redeemable Noncontrolling Interests (“RNCI”) | 15,882 | 17,216 | 17,232 | 16,972 | 16,199 | |||||||||||||||||||
Shareholders’ Equity: | ||||||||||||||||||||||||
Preferred stock, $1.00 par value; authorized: 2,000,000 shares | 47,753 | 47,753 | 47,753 | 47,753 | 47,753 | |||||||||||||||||||
Common stock, $1.00 par value; authorized: 170,000,000 shares | 84,082 | 84,015 | 84,134 | 83,732 | 83,195 | |||||||||||||||||||
Additional paid-in capital | 606,802 | 602,507 | 602,748 | 597,454 | 597,209 | |||||||||||||||||||
Retained earnings | 76,455 | 66,807 | 53,510 | 47,929 | 39,415 | |||||||||||||||||||
Accumulated other comprehensive income/ (loss) | (4,823 | ) | (6,038 | ) | (10,237 | ) | (12,548 | ) | 10,134 | |||||||||||||||
Total Company’s shareholders’ equity | 810,269 | 795,044 | 777,908 | 764,320 | 777,706 | |||||||||||||||||||
Noncontrolling interests | 4,792 | 4,375 | 3,993 | 4,161 | 3,782 | |||||||||||||||||||
Total shareholders’ equity | 815,061 | 799,419 | 781,901 | 768,481 | 781,488 | |||||||||||||||||||
Total liabilities, redeemable noncontrolling interests and shareholders’ equity | $ | 8,269,398 | $ | 8,107,646 | $ | 8,215,120 | $ | 7,970,474 | $ | 7,681,550 | ||||||||||||||
Boston Private Financial Holdings, Inc. Selected Financial Data (Unaudited) |
|||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
September 30, 2017 |
June 30, 2017 |
March 31, 2017 |
December 31, 2016 |
September 30, 2016 |
|||||||||||||||||||||
Interest and dividend income: | (In thousands, except share and per share data) | ||||||||||||||||||||||||
Loans | $ | 58,096 | $ | 57,736 | $ | 53,636 | $ | 51,499 | $ | 50,074 | |||||||||||||||
Taxable investment securities | 1,569 | 1,592 | 1,670 | 1,592 | 1,537 | ||||||||||||||||||||
Non-taxable investment securities | 1,664 | 1,655 | 1,606 | 1,520 | 1,444 | ||||||||||||||||||||
Mortgage-backed securities | 3,267 | 3,495 | 3,504 | 3,290 | 3,079 | ||||||||||||||||||||
Federal funds sold and other | 916 | 831 | 600 | 508 | 469 | ||||||||||||||||||||
Total interest and dividend income | 65,512 | 65,309 | 61,016 | 58,409 | 56,603 | ||||||||||||||||||||
Interest expense: | |||||||||||||||||||||||||
Deposits | 5,356 | 4,949 | 4,531 | 4,152 | 4,163 | ||||||||||||||||||||
Federal Home Loan Bank borrowings | 2,657 | 2,489 | 2,111 | 1,987 | 1,929 | ||||||||||||||||||||
Junior subordinated debentures | 761 | 716 | 671 | 674 | 591 | ||||||||||||||||||||
Repurchase agreements and other short-term borrowings | 111 | 10 | 61 | 77 | 49 | ||||||||||||||||||||
Total interest expense | 8,885 | 8,164 | 7,374 | 6,890 | 6,732 | ||||||||||||||||||||
Net interest income | 56,627 | 57,145 | 53,642 | 51,519 | 49,871 | ||||||||||||||||||||
Provision/ (credit) for loan losses | (432 | ) | (6,114 | ) | (181 | ) | (1,128 | ) | (138 | ) | |||||||||||||||
Net interest income after provision/ (credit) for loan losses | 57,059 | 63,259 | 53,823 | 52,647 | 50,009 | ||||||||||||||||||||
Fees and other income: | |||||||||||||||||||||||||
Investment management fees | 11,274 | 11,081 | 10,839 | 12,408 | 10,717 | ||||||||||||||||||||
Wealth advisory fees | 13,279 | 12,961 | 12,823 | 12,568 | 12,750 | ||||||||||||||||||||
Wealth management and trust fees | 11,619 | 11,161 | 10,826 | 11,031 | 10,826 | ||||||||||||||||||||
Other banking fee income | 2,726 | 1,964 | 1,694 | 2,387 | 3,447 | ||||||||||||||||||||
Gain on sale of loans, net | 169 | 59 | 138 | 105 | 156 | ||||||||||||||||||||
Total core fees and income | 39,067 | 37,226 | 36,320 | 38,499 | 37,896 | ||||||||||||||||||||
Gain/ (loss) on sale of investments, net | 230 | 237 | 19 | 2 | 273 | ||||||||||||||||||||
Gain/ (loss) on OREO, net | — | — | (46 | ) | (110 | ) | 137 | ||||||||||||||||||
Gain on sale of offices | — | — | — | 2,862 | — | ||||||||||||||||||||
Other | 970 | 555 | 213 | 2,705 | 1,706 | ||||||||||||||||||||
Total other income | 1,200 | 792 | 186 | 5,459 | 2,116 | ||||||||||||||||||||
Total revenue | 96,894 | 95,163 | 90,148 | 95,477 | 89,883 | ||||||||||||||||||||
Operating expense: | |||||||||||||||||||||||||
Salaries and employee benefits | 45,168 | 43,493 | 45,825 | 39,669 | 40,924 | ||||||||||||||||||||
Occupancy and equipment | 11,283 | 10,779 | 10,649 | 10,039 | 9,521 | ||||||||||||||||||||
Professional services | 3,308 | 3,106 | 3,314 | 2,756 | 2,290 | ||||||||||||||||||||
Marketing and business development | 2,216 | 1,971 | 1,660 | 2,022 | 1,623 | ||||||||||||||||||||
Contract services and data processing | 1,608 | 1,641 | 1,580 | 1,743 | 1,865 | ||||||||||||||||||||
Amortization of intangibles | 1,426 | 1,426 | 1,426 | 1,542 | 1,568 | ||||||||||||||||||||
Impairment of goodwill | — | — | — | 9,528 | — | ||||||||||||||||||||
FDIC insurance | 647 | 879 | 766 | 727 | 722 | ||||||||||||||||||||
Restructuring | — | — | — | — | — | ||||||||||||||||||||
Other | 3,690 | 4,526 | 3,560 | 3,817 | 3,157 | ||||||||||||||||||||
Total operating expense | 69,346 | 67,821 | 68,780 | 71,843 | 61,670 | ||||||||||||||||||||
Income before income taxes | 27,980 | 33,456 | 21,549 | 24,762 | 28,351 | ||||||||||||||||||||
Income tax expense | 8,289 | 9,963 | 6,553 | 7,247 | 8,652 | ||||||||||||||||||||
Net income from continuing operations | 19,691 | 23,493 | 14,996 | 17,515 | 19,699 | ||||||||||||||||||||
Net income from discontinued operations (1) | 1,186 | 1,063 | 1,632 | 1,184 | 1,047 | ||||||||||||||||||||
Net income before attribution to noncontrolling interests | 20,877 | 24,556 | 16,628 | 18,699 | 20,746 | ||||||||||||||||||||
Less: Net income attributable to noncontrolling interests | 1,074 | 1,150 | 966 | 1,147 | 1,110 | ||||||||||||||||||||
Net income attributable to the Company | $ | 19,803 | $ | 23,406 | $ | 15,662 | $ | 17,552 | $ | 19,636 | |||||||||||||||
Boston Private Financial Holdings, Inc. Selected Financial Data (Unaudited) |
||||||||||
Nine Months Ended | ||||||||||
September 30, 2017 |
September 30, 2016 |
|||||||||
Interest and dividend income: | (In thousands, except share and per share data) | |||||||||
Loans | $ | 169,468 | $ | 149,851 | ||||||
Taxable investment securities | 4,831 | 4,638 | ||||||||
Non-taxable investment securities | 4,925 | 4,234 | ||||||||
Mortgage-backed securities | 10,266 | 9,126 | ||||||||
Federal funds sold and other | 2,347 | 1,381 | ||||||||
Total interest and dividend income | 191,837 | 169,230 | ||||||||
Interest expense: | ||||||||||
Deposits | 14,836 | 12,420 | ||||||||
Federal Home Loan Bank borrowings | 7,257 | 6,021 | ||||||||
Junior subordinated debentures | 2,148 | 1,753 | ||||||||
Repurchase agreements and other short-term borrowings | 182 | 117 | ||||||||
Total interest expense | 24,423 | 20,311 | ||||||||
Net interest income | 167,414 | 148,919 | ||||||||
Provision/ (credit) for loan losses | (6,727 | ) | (5,806 | ) | ||||||
Net interest income after provision/ (credit) for loan losses | 174,141 | 154,725 | ||||||||
Fees and other income: | ||||||||||
Investment management fees | 33,194 | 32,002 | ||||||||
Wealth advisory fees | 39,063 | 38,013 | ||||||||
Wealth management and trust fees | 33,606 | 32,950 | ||||||||
Other banking fee income | 6,384 | 9,662 | ||||||||
Gain on sale of loans, net | 366 | 562 | ||||||||
Total core fees and income | 112,613 | 113,189 | ||||||||
Gain/ (loss) on sale of investments, net | 486 | 519 | ||||||||
Gain/ (loss) on OREO, net | (46 | ) | 417 | |||||||
Other | 1,738 | 704 | ||||||||
Total other income | 2,178 | 1,640 | ||||||||
Total revenue | 282,205 | 263,748 | ||||||||
Operating expense: | ||||||||||
Salaries and employee benefits | 134,486 | 124,098 | ||||||||
Occupancy and equipment | 32,711 | 29,036 | ||||||||
Professional services | 9,728 | 8,820 | ||||||||
Marketing and business development | 5,847 | 5,604 | ||||||||
Contract services and data processing | 4,829 | 5,281 | ||||||||
Amortization of intangibles | 4,278 | 4,740 | ||||||||
FDIC insurance | 2,292 | 2,757 | ||||||||
Restructuring | — | 2,017 | ||||||||
Other | 11,776 | 10,757 | ||||||||
Total operating expense | 205,947 | 193,110 | ||||||||
Income before income taxes | 82,985 | 76,444 | ||||||||
Income tax expense | 24,805 | 23,716 | ||||||||
Net income from continuing operations | 58,180 | 52,728 | ||||||||
Net income from discontinued operations (1) | 3,881 | 4,357 | ||||||||
Net income before attribution to noncontrolling interests | 62,061 | 57,085 | ||||||||
Less: Net income attributable to noncontrolling interests | 3,190 | 3,010 | ||||||||
Net income attributable to the Company | $ | 58,871 | $ | 54,075 | ||||||
Boston Private Financial Holdings, Inc. Selected Financial Data (Unaudited) |
|||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
PER SHARE DATA: |
September 30, 2017 |
June 30, 2017 |
March 31, 2017 |
December 31, 2016 |
September 30, 2016 |
||||||||||||||||||||
(In thousands, except share and per share data) | |||||||||||||||||||||||||
Calculation of Income for EPS: | |||||||||||||||||||||||||
Net income attributable to the Company | $ | 19,803 | $ | 23,406 | $ | 15,662 | $ | 17,552 | $ | 19,636 | |||||||||||||||
Adjustments to Net Income Attributable to the Company to arrive at Net Income Attributable to Common Shareholders, treasury stock method (2) |
(1,146 | ) | (577 | ) | (1,166 | ) | (1,798 | ) | (1,006 | ) | |||||||||||||||
Net Income Attributable to the Common Shareholders, treasury stock method | $ | 18,657 | $ | 22,829 | $ | 14,496 | $ | 15,755 | $ | 18,630 | |||||||||||||||
End of Period Common Shares Outstanding | 84,082,250 | 84,015,141 | 84,134,104 | 83,731,769 | 83,194,714 | ||||||||||||||||||||
Weighted Average Shares Outstanding: | |||||||||||||||||||||||||
Weighted average basic shares outstanding | 82,556,225 | 82,298,493 | 81,951,179 | 81,217,391 | 81,301,499 | ||||||||||||||||||||
Weighted average diluted shares outstanding (3) | 84,888,311 | 84,741,680 | 84,560,918 | 83,438,137 | 83,562,283 | ||||||||||||||||||||
Diluted Total Earnings per Share | $ | 0.22 | $ | 0.27 | $ | 0.17 | $ | 0.19 | $ | 0.22 | |||||||||||||||
Nine Months Ended | ||||||||||
PER SHARE DATA: |
September 30, 2017 |
September 30, 2016 |
||||||||
(In thousands, except share
and per share data) |
||||||||||
Calculation of Income for EPS: | ||||||||||
Net income attributable to the Company | $ | 58,871 | $ | 54,075 | ||||||
Adjustments to Net Income Attributable to the Company to arrive at Net Income Attributable to Common Shareholders, treasury stock method (2) |
(2,889 | ) | (2,265 | ) | ||||||
Net Income Attributable to the Common Shareholders, treasury stock method | $ | 55,982 | $ | 51,810 | ||||||
Weighted Average Shares Outstanding: | ||||||||||
Weighted average basic shares outstanding | 82,270,849 | 81,280,014 | ||||||||
Weighted average diluted shares outstanding (3) | 84,741,172 | 83,430,480 | ||||||||
Diluted Total Earnings per Share | $ | 0.66 | $ | 0.62 | ||||||
Boston Private Financial Holdings, Inc. Selected Financial Data (Unaudited) |
|||||||||||||||||||||||||
(In thousands, except per share data) |
September 30, 2017 |
June 30, 2017 |
March 31, 2017 |
December 31, 2016 |
September 30, 2016 |
||||||||||||||||||||
FINANCIAL DATA: | |||||||||||||||||||||||||
Book Value Per Common Share | $ | 9.13 | $ | 8.95 | $ | 8.73 | $ | 8.61 | $ | 8.82 | |||||||||||||||
Tangible Book Value Per Share (4) | $ | 7.16 | $ | 6.97 | $ | 6.73 | $ | 6.59 | $ | 6.65 | |||||||||||||||
Market Price Per Share | $ | 16.55 | $ | 15.35 | $ | 16.40 | $ | 16.55 | $ | 12.83 | |||||||||||||||
ASSETS UNDER MANAGEMENT AND ADVISORY: | |||||||||||||||||||||||||
Wealth Management and Trust | $ | 7,703,000 | $ | 7,429,000 | $ | 7,260,000 | $ | 7,008,000 | $ | 7,334,000 | |||||||||||||||
Investment Managers | 11,083,000 | 10,901,000 | 10,907,000 | 10,571,000 | 10,176,000 | ||||||||||||||||||||
Wealth Advisory | 10,992,000 | 10,744,000 | 10,579,000 | 9,989,000 | 10,028,000 | ||||||||||||||||||||
Less: Inter-company Relationship | (11,000 | ) | (11,000 | ) | (11,000 | ) | (11,000 | ) | (11,000 | ) | |||||||||||||||
Total Assets Under Management and Advisory | $ | 29,767,000 | $ | 29,063,000 | $ | 28,735,000 | $ | 27,557,000 | $ | 27,527,000 | |||||||||||||||
FINANCIAL RATIOS: | |||||||||||||||||||||||||
Total Equity/ Total Assets | 9.86 | % | 9.86 | % | 9.52 | % | 9.64 | % | 10.17 | % | |||||||||||||||
Tangible Common Equity/ Tangible Assets (4) | 7.43 | % | 7.37 | % | 7.04 | % | 7.07 | % | 7.38 | % | |||||||||||||||
Tier I Common Equity/ Risk Weighted Assets (4) | 10.42 | % | 10.28 | % | 9.97 | % | 10.00 | % | 10.02 | % | |||||||||||||||
Allowance for Loan Losses/ Total Loans | 1.17 | % | 1.19 | % | 1.25 | % | 1.28 | % | 1.32 | % | |||||||||||||||
Allowance for Loan Losses/ Nonaccrual Loans | 550 | % | 464 | % | 373 | % | 451 | % | 471 | % | |||||||||||||||
Return on Average Assets - Three Months Ended (Annualized) | 0.96 | % | 1.15 | % | 0.79 | % | 0.89 | % | 1.03 | % | |||||||||||||||
Return on Average Common Equity - Three Months Ended (Annualized) (5) | 9.87 | % | 12.12 | % | 8.26 | % | 9.07 | % | 10.20 | % | |||||||||||||||
Return on Average Tangible Common Equity - Three Months Ended (Annualized) (5) | 13.24 | % | 16.27 | % | 11.43 | % | 12.75 | % | 14.30 | % | |||||||||||||||
Efficiency Ratio - Three Months Ended (6) | 68.06 | % | 67.69 | % | 72.45 | % | 61.87 | % | 65.04 | % | |||||||||||||||
DEPOSIT DETAIL: | |||||||||||||||||||||||||
Demand deposits (noninterest-bearing) | $ | 1,850,833 | $ | 1,935,622 | $ | 1,772,854 | $ | 1,753,648 | $ | 1,770,631 | |||||||||||||||
NOW | 636,013 | 631,973 | 620,280 | 578,657 | 557,482 | ||||||||||||||||||||
Savings | 74,333 | 69,892 | 74,293 | 74,162 | 73,480 | ||||||||||||||||||||
Money market | 3,009,779 | 3,055,642 | 3,176,472 | 3,102,048 | 2,879,952 | ||||||||||||||||||||
Certificates of deposit | 691,389 | 688,210 | 602,721 | 576,631 | 530,698 | ||||||||||||||||||||
Total Deposits | $ | 6,262,347 | $ | 6,381,339 | $ | 6,246,620 | $ | 6,085,146 | $ | 5,812,243 | |||||||||||||||
Boston Private Financial Holdings, Inc. Selected Financial Data (Unaudited) |
||||||||||||||||||||||||||||||||||||||||||
Average Balance | Interest Income/Expense | Average Yield/Rate | ||||||||||||||||||||||||||||||||||||||||
(In thousands) | Three Months Ended | Three Months Ended | Three Months Ended | |||||||||||||||||||||||||||||||||||||||
AVERAGE BALANCE SHEET: | 09/30/17 | 06/30/17 | 09/30/16 | 09/30/17 | 06/30/17 | 09/30/16 | 09/30/17 | 06/30/17 | 09/30/16 | |||||||||||||||||||||||||||||||||
AVERAGE ASSETS | ||||||||||||||||||||||||||||||||||||||||||
Interest-Earning Assets: | ||||||||||||||||||||||||||||||||||||||||||
Cash and Investments: | ||||||||||||||||||||||||||||||||||||||||||
Taxable investment securities | $ | 353,374 | $ | 363,166 | $ | 372,852 | $ | 1,569 | $ | 1,592 | $ | 1,537 | 1.77 | % | 1.75 | % | 1.65 | % | ||||||||||||||||||||||||
Non-taxable investment securities (9) | 295,727 | 294,836 | 271,864 | 2,559 | 2,546 | 2,221 | 3.46 | % | 3.45 | % | 3.27 | % | ||||||||||||||||||||||||||||||
Mortgage-backed securities | 631,052 | 653,201 | 629,748 | 3,267 | 3,495 | 3,079 | 2.07 | % | 2.14 | % | 1.96 | % | ||||||||||||||||||||||||||||||
Federal funds sold and other | 146,285 | 199,230 | 152,892 | 916 | 831 | 469 | 2.47 | % | 1.66 | % | 1.20 | % | ||||||||||||||||||||||||||||||
Total Cash and Investments | 1,426,438 | 1,510,433 | 1,427,356 | 8,311 | 8,464 | 7,306 | 2.33 | % | 2.24 | % | 2.05 | % | ||||||||||||||||||||||||||||||
Loans (10): | ||||||||||||||||||||||||||||||||||||||||||
Commercial and Industrial (9) | 994,388 | 987,144 | 1,065,787 | 10,001 | 9,773 | 10,626 | 3.94 | % | 3.92 | % | 3.90 | % | ||||||||||||||||||||||||||||||
Commercial Real Estate (9) | 2,381,583 | 2,358,409 | 1,976,327 | 25,579 | 26,433 | 19,860 | 4.20 | % | 4.43 | % | 3.93 | % | ||||||||||||||||||||||||||||||
Construction and Land | 113,562 | 119,366 | 117,183 | 1,415 | 1,377 | 1,263 | 4.88 | % | 4.56 | % | 4.22 | % | ||||||||||||||||||||||||||||||
Residential | 2,567,044 | 2,489,072 | 2,300,392 | 20,423 | 19,574 | 17,812 | 3.18 | % | 3.15 | % | 3.10 | % | ||||||||||||||||||||||||||||||
Home Equity | 106,744 | 109,942 | 122,505 | 1,128 | 1,085 | 1,105 | 4.19 | % | 3.96 | % | 3.59 | % | ||||||||||||||||||||||||||||||
Other Consumer | 187,184 | 195,384 | 182,315 | 1,554 | 1,526 | 1,154 | 3.29 | % | 3.13 | % | 2.52 | % | ||||||||||||||||||||||||||||||
Total Loans | 6,350,505 | 6,259,317 | 5,764,509 | 60,100 | 59,768 | 51,820 | 3.73 | % | 3.79 | % | 3.55 | % | ||||||||||||||||||||||||||||||
Total Earning Assets | 7,776,943 | 7,769,750 | 7,191,865 | 68,411 | 68,232 | 59,126 | 3.48 | % | 3.49 | % | 3.25 | % | ||||||||||||||||||||||||||||||
LESS: Allowance for Loan Losses | 75,166 | 80,614 | 76,424 | |||||||||||||||||||||||||||||||||||||||
Cash and due From Banks (Non-Interest Bearing) | 42,031 | 42,166 | 39,301 | |||||||||||||||||||||||||||||||||||||||
Other Assets | 455,820 | 450,703 | 445,517 | |||||||||||||||||||||||||||||||||||||||
TOTAL AVERAGE ASSETS | $ | 8,199,628 | $ | 8,182,005 | $ | 7,600,259 | ||||||||||||||||||||||||||||||||||||
AVERAGE LIABILITIES, RNCI, AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||||||||||||||||||
Interest-Bearing Liabilities: | ||||||||||||||||||||||||||||||||||||||||||
Interest-Bearing Deposits (10): | ||||||||||||||||||||||||||||||||||||||||||
NOW | $ | 630,282 | $ | 640,378 | $ | 551,085 | $ | 189 | $ | 172 | $ | 120 | 0.12 | % | 0.11 | % | 0.09 | % | ||||||||||||||||||||||||
Savings | 71,900 | 71,505 | 76,999 | 16 | 15 | 25 | 0.09 | % | 0.08 | % | 0.13 | % | ||||||||||||||||||||||||||||||
Money Market | 3,065,059 | 3,173,768 | 2,922,687 | 3,436 | 3,244 | 2,877 | 0.44 | % | 0.41 | % | 0.39 | % | ||||||||||||||||||||||||||||||
Certificates of Deposit | 671,992 | 665,668 | 560,546 | 1,715 | 1,518 | 1,141 | 1.01 | % | 0.91 | % | 0.81 | % | ||||||||||||||||||||||||||||||
Total Interest-Bearing Deposits (14) | 4,439,233 | 4,551,319 | 4,111,317 | 5,356 | 4,949 | 4,163 | 0.48 | % | 0.44 | % | 0.40 | % | ||||||||||||||||||||||||||||||
Junior Subordinated Debentures | 106,363 | 106,363 | 106,363 | 761 | 716 | 591 | 2.80 | % | 2.67 | % | 2.17 | % | ||||||||||||||||||||||||||||||
FHLB Borrowings and Other | 736,035 | 703,149 | 624,528 | 2,768 | 2,499 | 1,978 | 1.47 | % | 1.41 | % | 1.24 | % | ||||||||||||||||||||||||||||||
Total Interest-Bearing Liabilities | 5,281,631 | 5,360,831 | 4,842,208 | 8,885 | 8,164 | 6,732 | 0.66 | % | 0.61 | % | 0.55 | % | ||||||||||||||||||||||||||||||
Non-interest Bearing Demand
Deposits (10) (14) |
1,966,479 | 1,899,916 | 1,824,548 | |||||||||||||||||||||||||||||||||||||||
Payables and Other Liabilities | 121,288 | 106,657 | 135,901 | |||||||||||||||||||||||||||||||||||||||
Total Average Liabilities | 7,369,398 | 7,367,404 | 6,802,657 | |||||||||||||||||||||||||||||||||||||||
Redeemable Noncontrolling Interests | 21,634 | 21,075 | 19,504 | |||||||||||||||||||||||||||||||||||||||
Average Shareholders' Equity | 808,596 | 793,526 | 778,098 | |||||||||||||||||||||||||||||||||||||||
TOTAL AVERAGE LIABILITIES, RNCI, AND SHAREHOLDERS' EQUITY | $ | 8,199,628 | $ | 8,182,005 | $ | 7,600,259 | ||||||||||||||||||||||||||||||||||||
Net Interest Income - on a Fully Taxable Equivalent Basis (FTE) | $ | 59,526 | $ | 60,068 | $ | 52,394 | ||||||||||||||||||||||||||||||||||||
LESS: FTE Adjustment (9) | 2,899 | 2,923 | 2,523 | |||||||||||||||||||||||||||||||||||||||
Net Interest Income (GAAP Basis) | $ | 56,627 | $ | 57,145 | $ | 49,871 | ||||||||||||||||||||||||||||||||||||
Interest Rate Spread | 2.82 | % | 2.88 | % | 2.70 | % | ||||||||||||||||||||||||||||||||||||
Bank only Net Interest Margin | 3.07 | % | 3.12 | % | 2.92 | % | ||||||||||||||||||||||||||||||||||||
Net Interest Margin | 3.02 | % | 3.07 | % | 2.88 | % |
Boston Private Financial Holdings, Inc. Selected Financial Data (Unaudited) |
||||||||||||||||||||||||||||
Average Balance | Interest Income/Expense | Average Yield/Rate | ||||||||||||||||||||||||||
(In thousands) | Nine Months Ended | Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||||
AVERAGE BALANCE SHEET: | 09/30/17 | 09/30/16 | 09/30/17 | 09/30/16 | 09/30/17 | 09/30/16 | ||||||||||||||||||||||
AVERAGE ASSETS | ||||||||||||||||||||||||||||
Interest-Earning Assets: | ||||||||||||||||||||||||||||
Cash and Investments: | ||||||||||||||||||||||||||||
Taxable investment securities | $ | 369,929 | $ | 373,273 | $ | 4,831 | $ | 4,638 | 1.74 | % | 1.66 | % | ||||||||||||||||
Non-taxable investment securities (9) | 295,195 | 265,280 | 7,576 | 6,512 | 3.42 | % | 3.27 | % | ||||||||||||||||||||
Mortgage-backed securities | 652,159 | 594,461 | 10,266 | 9,126 | 2.10 | % | 2.05 | % | ||||||||||||||||||||
Federal funds sold and other | 169,114 | 160,114 | 2,347 | 1,381 | 1.55 | % | 1.14 | % | ||||||||||||||||||||
Total Cash and Investments | 1,486,397 | 1,393,128 | 25,020 | 21,657 | 2.21 | % | 2.07 | % | ||||||||||||||||||||
Loans (10): | ||||||||||||||||||||||||||||
Commercial and Industrial (9) | 988,449 | 1,072,051 | 29,077 | 32,358 | 3.88 | % | 3.97 | % | ||||||||||||||||||||
Commercial Real Estate (9) | 2,354,996 | 1,915,839 | 75,556 | 59,216 | 4.23 | % | 4.06 | % | ||||||||||||||||||||
Construction and Land | 115,629 | 147,548 | 4,036 | 4,367 | 4.60 | % | 3.89 | % | ||||||||||||||||||||
Residential | 2,494,151 | 2,262,262 | 58,988 | 52,555 | 3.15 | % | 3.10 | % | ||||||||||||||||||||
Home Equity | 111,423 | 121,849 | 3,302 | 3,260 | 3.96 | % | 3.57 | % | ||||||||||||||||||||
Other Consumer | 191,550 | 172,578 | 4,500 | 3,193 | 3.14 | % | 2.47 | % | ||||||||||||||||||||
Total Loans | 6,256,198 | 5,692,127 | 175,459 | 154,949 | 3.71 | % | 3.60 | % | ||||||||||||||||||||
Total Earning Assets | 7,742,595 | 7,085,255 | 200,479 | 176,606 | 3.43 | % | 3.30 | % | ||||||||||||||||||||
LESS: Allowance for Loan Losses | 77,957 | 78,008 | ||||||||||||||||||||||||||
Cash and due From Banks (Non-Interest Bearing) | 42,006 | 39,869 | ||||||||||||||||||||||||||
Other Assets | 436,373 | 432,005 | ||||||||||||||||||||||||||
TOTAL AVERAGE ASSETS | $ | 8,143,017 | $ | 7,479,121 | ||||||||||||||||||||||||
AVERAGE LIABILITIES, RNCI, AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||||
Interest-Bearing Liabilities: | ||||||||||||||||||||||||||||
Interest-Bearing Deposits (10): | ||||||||||||||||||||||||||||
NOW |
$ | 616,054 | $ | 549,429 | $ | 472 | $ | 311 | 0.10 | % | 0.08 | % | ||||||||||||||||
Savings | 72,831 | 75,958 | 49 | 71 | 0.09 | % | 0.13 | % | ||||||||||||||||||||
Money Market | 3,149,545 | 2,958,051 | 9,801 | 8,615 | 0.42 | % | 0.39 | % | ||||||||||||||||||||
Certificates of Deposit | 642,820 | 566,022 | 4,514 | 3,423 | 0.94 | % | 0.81 | % | ||||||||||||||||||||
Total Interest-Bearing Deposits (14) | 4,481,250 | 4,149,460 | 14,836 | 12,420 | 0.44 | % | 0.40 | % | ||||||||||||||||||||
Junior Subordinated Debentures | 106,363 | 106,363 | 2,148 | 1,753 | 2.66 | % | 2.17 | % | ||||||||||||||||||||
FHLB Borrowings and Other | 722,087 | 623,030 | 7,439 | 6,138 | 1.36 | % | 1.29 | % | ||||||||||||||||||||
Total Interest-Bearing Liabilities | 5,309,700 | 4,878,853 | 24,423 | 20,311 | 0.61 | % | 0.55 | % | ||||||||||||||||||||
Non-interest Bearing Demand Deposits (10) (14) |
1,903,709 | 1,691,872 | ||||||||||||||||||||||||||
Payables and Other Liabilities | 115,622 | 121,601 | ||||||||||||||||||||||||||
Total Average Liabilities | 7,329,031 | 6,692,326 | ||||||||||||||||||||||||||
Redeemable Noncontrolling Interests | 21,341 | 20,225 | ||||||||||||||||||||||||||
Average Shareholders' Equity | 792,645 | 766,570 | ||||||||||||||||||||||||||
TOTAL AVERAGE LIABILITIES, RNCI, AND SHAREHOLDERS' EQUITY | $ | 8,143,017 | $ | 7,479,121 | ||||||||||||||||||||||||
Net Interest Income - on a Fully Taxable Equivalent Basis (FTE) | $ | 176,056 | $ | 156,295 | ||||||||||||||||||||||||
LESS: FTE Adjustment (9) | 8,642 | 7,376 | ||||||||||||||||||||||||||
Net Interest Income (GAAP Basis) | $ | 167,414 | $ | 148,919 | ||||||||||||||||||||||||
Interest Rate Spread | 2.82 | % | 2.75 | % | ||||||||||||||||||||||||
Bank only Net Interest Margin | 3.06 | % | 2.96 | % | ||||||||||||||||||||||||
Net Interest Margin | 3.01 | % | 2.92 | % | ||||||||||||||||||||||||
Boston Private Financial Holdings, Inc. Selected Financial Data (Unaudited) |
||||||||||||||||||||||||
(In thousands) |
September 30, 2017 |
June 30, 2017 |
March 31, 2017 |
December 31, 2016 |
September 30, 2016 |
|||||||||||||||||||
LOAN DATA (11): | ||||||||||||||||||||||||
Other Commercial and Industrial Loans: | ||||||||||||||||||||||||
New England | $ | 503,322 | $ | 429,598 | $ | 458,687 | $ | 493,451 | $ | 461,201 | ||||||||||||||
San Francisco Bay Area | 50,686 | 49,163 | 55,289 | 50,578 | 59,936 | |||||||||||||||||||
Southern California | 64,248 | 62,995 | 66,378 | 67,341 | 67,583 | |||||||||||||||||||
Total Other Commercial and Industrial Loans | $ | 618,256 | $ | 541,756 | $ | 580,354 | $ | 611,370 | $ | 588,720 | ||||||||||||||
Commercial Tax Exempt Loans: | ||||||||||||||||||||||||
New England | $ | 320,172 | $ | 312,783 | $ | 318,137 | $ | 317,691 | $ | 263,418 | ||||||||||||||
San Francisco Bay Area | 99,540 | 91,666 | 79,517 | 69,064 | 69,366 | |||||||||||||||||||
Southern California | 11,638 | 11,708 | 11,778 | 11,849 | 11,918 | |||||||||||||||||||
Total Commercial Tax Exempt Loans | $ | 431,350 | $ | 416,157 | $ | 409,432 | $ | 398,604 | $ | 344,702 | ||||||||||||||
Total Commercial and Industrial Loans | $ | 1,049,606 | 957,913 | 989,786 | 1,009,974 | 933,422 | ||||||||||||||||||
Commercial Real Estate Loans: | ||||||||||||||||||||||||
New England | $ | 988,788 | $ | 993,426 | $ | 1,017,565 | $ | 1,012,284 | $ | 987,758 | ||||||||||||||
San Francisco Bay Area | 698,148 | 688,751 | 686,019 | 637,042 | 611,224 | |||||||||||||||||||
Southern California | 676,223 | 674,168 | 665,043 | 652,918 | 621,336 | |||||||||||||||||||
Total Commercial Real Estate Loans | $ | 2,363,159 | $ | 2,356,345 | $ | 2,368,627 | $ | 2,302,244 | $ | 2,220,318 | ||||||||||||||
Construction and Land Loans: | ||||||||||||||||||||||||
New England | $ | 61,635 | $ | 74,919 | $ | 58,737 | $ | 47,434 | $ | 56,268 | ||||||||||||||
San Francisco Bay Area | 20,893 | 22,177 | 28,148 | 29,629 | 26,400 | |||||||||||||||||||
Southern California | 35,763 | 33,808 | 30,122 | 27,776 | 16,028 | |||||||||||||||||||
Total Construction and Land Loans | $ | 118,291 | $ | 130,904 | $ | 117,007 | $ | 104,839 | $ | 98,696 | ||||||||||||||
Residential Loans: | ||||||||||||||||||||||||
New England | $ | 1,558,587 | $ | 1,540,393 | $ | 1,508,138 | $ | 1,456,592 | $ | 1,409,385 | ||||||||||||||
San Francisco Bay Area | 510,956 | 488,854 | 474,294 | 473,102 | 476,986 | |||||||||||||||||||
Southern California | 531,245 | 495,978 | 481,184 | 450,167 | 429,719 | |||||||||||||||||||
Total Residential Loans | $ | 2,600,788 | $ | 2,525,225 | $ | 2,463,616 | $ | 2,379,861 | $ | 2,316,090 | ||||||||||||||
Home Equity Loans: | ||||||||||||||||||||||||
New England | $ | 72,149 | $ | 71,953 | $ | 80,904 | $ | 87,280 | $ | 90,592 | ||||||||||||||
San Francisco Bay Area | 26,052 | 28,400 | 26,006 | 25,129 | 23,826 | |||||||||||||||||||
Southern California | 9,026 | 8,196 | 7,626 | 6,408 | 6,851 | |||||||||||||||||||
Total Home Equity Loans | $ | 107,227 | $ | 108,549 | $ | 114,536 | $ | 118,817 | $ | 121,269 | ||||||||||||||
Other Consumer Loans: | ||||||||||||||||||||||||
New England | $ | 150,309 | $ | 175,644 | $ | 175,096 | $ | 186,680 | $ | 167,140 | ||||||||||||||
San Francisco Bay Area | 15,302 | 17,909 | 17,163 | 7,517 | 6,764 | |||||||||||||||||||
Southern California | 8,519 | 7,439 | 4,386 | 4,422 | 5,799 | |||||||||||||||||||
Total Other Consumer Loans | $ | 174,130 | $ | 200,992 | $ | 196,645 | $ | 198,619 | $ | 179,703 | ||||||||||||||
Total Loans: | ||||||||||||||||||||||||
New England | $ | 3,654,962 | $ | 3,598,716 | $ | 3,617,264 | $ | 3,601,412 | $ | 3,435,762 | ||||||||||||||
San Francisco Bay Area | 1,421,577 | 1,386,920 | 1,366,436 | 1,292,061 | 1,274,502 | |||||||||||||||||||
Southern California | 1,336,662 | 1,294,292 | 1,266,517 | 1,220,881 | 1,159,234 | |||||||||||||||||||
Total Loans | $ | 6,413,201 | $ | 6,279,928 | $ | 6,250,217 | $ | 6,114,354 | $ | 5,869,498 | ||||||||||||||
Boston Private Financial Holdings, Inc. Selected Financial Data (Unaudited) |
|||||||||||||||||||||||||
(In thousands) |
September 30, 2017 |
June 30, 2017 |
March 31, 2017 |
December 31, 2016 |
September 30, 2016 |
||||||||||||||||||||
CREDIT QUALITY (11): | |||||||||||||||||||||||||
Special Mention Loans: | |||||||||||||||||||||||||
New England | $ | 37,569 | $ | 34,538 | $ | 21,596 | $ | 14,750 | $ | 25,248 | |||||||||||||||
San Francisco Bay Area | 23,898 | 23,399 | 23,850 | 21,901 | 22,786 | ||||||||||||||||||||
Southern California | 17,207 | 4,327 | 4,350 | 884 | 6,278 | ||||||||||||||||||||
Total Special Mention Loans | $ | 78,674 | $ | 62,264 | $ | 49,796 | $ | 37,535 | $ | 54,312 | |||||||||||||||
Accruing Substandard Loans (12): | |||||||||||||||||||||||||
New England | $ | 8,196 | $ | 10,185 | $ | 12,157 | $ | 10,972 | $ | 19,748 | |||||||||||||||
San Francisco Bay Area | 11,622 | 6,574 | 15,824 | 15,890 | 19,157 | ||||||||||||||||||||
Southern California | 33,923 | 34,339 | 36,398 | 36,809 | 49,148 | ||||||||||||||||||||
Total Accruing Substandard Loans | $ | 53,741 | $ | 51,098 | $ | 64,379 | $ | 63,671 | $ | 88,053 | |||||||||||||||
Nonaccruing Loans: | |||||||||||||||||||||||||
New England | $ | 7,380 | $ | 9,880 | $ | 14,407 | $ | 10,081 | $ | 11,020 | |||||||||||||||
San Francisco Bay Area | 1,494 | 1,857 | 2,312 | 2,989 | 3,543 | ||||||||||||||||||||
Southern California | 4,749 | 4,439 | 4,226 | 4,245 | 1,928 | ||||||||||||||||||||
Total Nonaccruing Loans | $ | 13,623 | $ | 16,176 | $ | 20,945 | $ | 17,315 | $ | 16,491 | |||||||||||||||
Other Real Estate Owned: | |||||||||||||||||||||||||
New England | $ | — | $ | — | $ | — | $ | 1,690 | $ | 1,800 | |||||||||||||||
San Francisco Bay Area | — | — | — | — | — | ||||||||||||||||||||
Southern California | — | — | — | — | — | ||||||||||||||||||||
Total Other Real Estate Owned | $ | — | $ | — | $ | — | $ | 1,690 | $ | 1,800 | |||||||||||||||
Loans 30-89 Days Past Due and Accruing (13): | |||||||||||||||||||||||||
New England | $ | 4,664 | $ | 3,182 | $ | 9,843 | $ | 10,311 | $ | 2,735 | |||||||||||||||
San Francisco Bay Area | 430 | 12 | 10,111 | 591 | 1,018 | ||||||||||||||||||||
Southern California | 198 | — | 8,771 | 4,235 | 836 | ||||||||||||||||||||
Total Loans 30-89 Days Past Due and Accruing | $ | 5,292 | $ | 3,194 | $ | 28,725 | $ | 15,137 | $ | 4,589 | |||||||||||||||
Loans (Charged-off)/ Recovered, Net for the Three Months Ended: | |||||||||||||||||||||||||
New England | $ | 73 | $ | 667 | $ | 79 | $ | 1,120 | $ | 1,704 | |||||||||||||||
San Francisco Bay Area | 206 | 2,856 | 35 | 384 | 318 | ||||||||||||||||||||
Southern California | 17 | (431 | ) | 21 | 33 | 32 | |||||||||||||||||||
Total Net Loans (Charged-off)/ Recovered | $ | 296 | $ | 3,092 | $ | 135 | $ | 1,537 | $ | 2,054 | |||||||||||||||
Loans (Charged-off)/ Recovered, Net for the Nine Months Ended: | |||||||||||||||||||||||||
New England | $ | 819 | $ | 834 | |||||||||||||||||||||
San Francisco Bay Area | 3,097 | 4,309 | |||||||||||||||||||||||
Southern California | (393 | ) | (168 | ) | |||||||||||||||||||||
Total Net Loans (Charged-off)/ Recovered | $ | 3,523 | $ | 4,975 | |||||||||||||||||||||
Boston Private Financial Holdings, Inc. Selected Financial Data (Unaudited) |
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FOOTNOTES: |
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(1) |
Net income from discontinued operations consists of contingent payments or expenses related to our divested affiliates, including Westfield Capital Management Company, LLC. |
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(2) |
Adjustments to net income attributable to the Company to arrive at net income attributable to the common shareholders, as presented in these tables, include decrease/ (increase) in noncontrolling interests redemption value and dividends paid on preferred stock. |
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(3) |
When the Company has positive net income from continuing operations attributable to the common shareholders, the Company adds additional shares to basic weighted average shares outstanding to arrive at diluted weighted average shares outstanding for the diluted earnings per share calculation. These additional shares reflect the assumed exercise, conversion, or contingent issuance of dilutive securities. If the additional shares would result in anti-dilution they would be excluded from the diluted earnings per share calculation. The potential dilutive shares relate to: unexercised stock options, unvested restricted stock, and unexercised stock warrants. See Part II. Item 8. “Financial Statements and Supplementary Data - Note 16: Earnings Per Share” in the Company's Annual Report on Form 10-K for the year ended December 31, 2016 for additional information. |
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(4) |
The Company uses certain non-GAAP financial measures, such as: Tangible Book Value Per Share and the Tangible Common Equity (“TCE”) to Tangible Assets (“TA”) ratio to provide information for investors to effectively analyze financial trends of ongoing business activities, and to enhance comparability with peers across the financial sector. |
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Reconciliations from the Company's GAAP Total Equity to Total Assets ratio to the Non-GAAP TCE to TA ratio, and from GAAP Book Value to Non-GAAP Tangible Book Value are presented below: |
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The Company calculates Tangible Assets by adjusting Total Assets to exclude Goodwill and Intangible Assets. |
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The Company calculates Tangible Common Equity by adjusting Total Equity to exclude non-convertible Series D Preferred stock and exclude Goodwill and Intangible Assets, net. |
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(In thousands, except share and per share data) |
September 30, 2017 |
June 30, 2017 |
March 31, 2017 |
December 31, 2016 |
September 30, 2016 |
||||||||||||||||||||||
Total Balance Sheet Assets | $ | 8,269,398 | $ | 8,107,646 | $ | 8,215,120 | $ | 7,970,474 | $ | 7,681,550 | |||||||||||||||||
LESS: Goodwill and Intangible Assets, net | (165,001 | ) | (166,427 | ) | (167,853 | ) | (169,279 | ) | (180,349 | ) | |||||||||||||||||
Tangible Assets (non-GAAP) | $ | 8,104,397 | $ | 7,941,219 | $ | 8,047,267 | $ | 7,801,195 | $ | 7,501,201 | |||||||||||||||||
Total Shareholders' Equity | $ | 815,061 | $ | 799,419 | $ | 781,901 | $ | 768,481 | $ | 781,488 | |||||||||||||||||
LESS: Series D Preferred Stock (non-convertible) | (47,753 | ) | (47,753 | ) | (47,753 | ) | (47,753 | ) | (47,753 | ) | |||||||||||||||||
LESS: Goodwill and Intangible Assets, net | (165,001 | ) | (166,427 | ) | (167,853 | ) | (169,279 | ) | (180,349 | ) | |||||||||||||||||
Total adjusting items | (212,754 | ) | (214,180 | ) | (215,606 | ) | (217,032 | ) | (228,102 | ) | |||||||||||||||||
Tangible Common Equity (non-GAAP) | $ | 602,307 | $ | 585,239 | $ | 566,295 | $ | 551,449 | $ | 553,386 | |||||||||||||||||
Total Equity/Total Assets | 9.86 | % | 9.86 | % | 9.52 | % | 9.64 | % | 10.17 | % | |||||||||||||||||
Tangible Common Equity/Tangible Assets (non-GAAP) | 7.43 | % | 7.37 | % | 7.04 | % | 7.07 | % | 7.38 | % | |||||||||||||||||
Total Risk Weighted Assets * | $ | 5,831,558 | $ | 5,765,471 | $ | 5,806,853 | $ | 5,716,037 | $ | 5,534,711 | |||||||||||||||||
Tier I Common Equity * | $ | 607,822 | $ | 592,845 | $ | 578,941 | $ | 571,663 | $ | 554,368 | |||||||||||||||||
Tier I Common Equity/ Risk Weighted Assets | 10.42 | % | 10.28 | % | 9.97 | % | 10.00 | % | 10.02 | % | |||||||||||||||||
End of Period Shares Outstanding | 84,082,250 | 84,015,141 | 84,134,104 | 83,731,769 | 83,194,714 | ||||||||||||||||||||||
Book Value Per Common Share | $ | 9.13 | $ | 8.95 | $ | 8.73 | $ | 8.61 | $ | 8.82 | |||||||||||||||||
Tangible Book Value Per Share (non-GAAP) | $ | 7.16 | $ | 6.97 | $ | 6.73 | $ | 6.59 | $ | 6.65 | |||||||||||||||||
|
* Risk Weighted Assets and Tier I Common Equity for September 30, 2017 are presented based on estimated data. |
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Boston Private Financial Holdings, Inc. Selected Financial Data (Unaudited) |
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(5) |
The Company uses certain non-GAAP financial measures, such as: Return on Average Common Equity and Return on Average Tangible Common Equity to provide information for investors to effectively analyze financial trends of ongoing business activities, and to enhance comparability with peers across the financial sector. |
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Reconciliations from the Company's GAAP Return on Average Equity ratio to the Non-GAAP Return on Average Common Equity ratio, and the Non-GAAP Return on Average Tangible Common Equity ratio are presented below: |
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The Company annualizes income data based on the number of days in the period presented and a 365 day year. The Company calculates Average Common Equity by adjusting Average Equity to exclude Average Preferred Equity. The Company calculates Average Tangible Common Equity by adjusting Average Equity to exclude Average Goodwill and Intangible Assets, net and Average Preferred Equity. |
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Three Months Ended | |||||||||||||||||||||||||||
(In thousands) |
September 30, 2017 |
June 30, 2017 |
March 31, 2017 |
December 31, 2016 |
September 30, 2016 |
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Total average shareholders' equity | $ | 808,596 | $ | 793,526 | $ | 774,251 | $ | 777,466 | $ | 778,098 | |||||||||||||||||
LESS: Average Series D preferred stock (non-convertible) | (47,753 | ) | (47,753 | ) | (47,753 | ) | (47,753 | ) | (47,753 | ) | |||||||||||||||||
Average common equity (non-GAAP) | 760,843 | 745,773 | 726,498 | 729,713 | 730,345 | ||||||||||||||||||||||
LESS: Average goodwill and intangible assets, net | (165,766 | ) | (167,204 | ) | (168,681 | ) | (179,535 | ) | (181,191 | ) | |||||||||||||||||
Average Tangible Common Equity (non-GAAP) | $ | 595,077 | $ | 578,569 | $ | 557,817 | $ | 550,178 | $ | 549,154 | |||||||||||||||||
Net income attributable to the Company | $ | 19,803 | $ | 23,406 | $ | 15,662 | $ | 17,552 | $ | 19,636 | |||||||||||||||||
LESS: Dividends on Series D preferred stock | (868 | ) | (869 | ) | (869 | ) | (869 | ) | (868 | ) | |||||||||||||||||
Common net income (non-GAAP) | 18,935 | 22,537 | 14,793 | 16,683 | 18,768 | ||||||||||||||||||||||
ADD: Amortization of intangibles, net of tax (35%) | 927 | 927 | 927 | 1,002 | 1,019 | ||||||||||||||||||||||
Tangible common net income (non-GAAP) | $ | 19,862 | $ | 23,464 | $ | 15,720 | $ | 17,685 | $ | 19,787 | |||||||||||||||||
Return on Average Equity - (Annualized) | 9.72 | % | 11.83 | % | 8.20 | % | 8.96 | % | 10.01 | % | |||||||||||||||||
Return on Average Common Equity - (Annualized) (non-GAAP) | 9.87 | % | 12.12 | % | 8.26 | % | 9.07 | % | 10.20 | % | |||||||||||||||||
Return on Average Tangible Common Equity - (Annualized) (non-GAAP) | 13.24 | % | 16.27 | % | 11.43 | % | 12.75 | % | 14.30 | % | |||||||||||||||||
Nine Months Ended | ||||||||||
(In thousands) |
September 30, 2017 |
September 30, 2016 |
||||||||
Total average shareholders' equity | $ | 792,645 | $ | 766,570 | ||||||
LESS: Average Series D preferred stock (non-convertible) | (47,753 | ) | (47,753 | ) | ||||||
Average common equity (non-GAAP) | 744,892 | 718,817 | ||||||||
LESS: Average goodwill and intangible assets, net | (167,209 | ) | (182,794 | ) | ||||||
Average Tangible Common Equity (non-GAAP) | $ | 577,683 | $ | 536,023 | ||||||
Net income attributable to the Company | $ | 58,871 | $ | 54,075 | ||||||
LESS: Dividends on Series D preferred stock | (2,606 | ) | (2,606 | ) | ||||||
Common net income (non-GAAP) | 56,265 | 51,469 | ||||||||
ADD: Amortization of intangibles, net of tax (35%) | 2,781 | 3,081 | ||||||||
Tangible common net income (non-GAAP) | $ | 59,046 | $ | 54,550 | ||||||
Return on Average Equity - (Annualized) | 9.93 | % | 9.43 | % | ||||||
Return on Average Common Equity - (Annualized) (non-GAAP) | 10.10 | % | 9.57 | % | ||||||
Return on Average Tangible Common Equity - (Annualized) (non-GAAP) | 13.67 | % | 13.61 | % | ||||||
Boston Private Financial Holdings, Inc. Selected Financial Data (Unaudited) |
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(6) |
The Company uses certain non-GAAP financial measures, such as: pre-tax, pre-provision income, total operating expenses excluding amortization of intangibles, goodwill impairment, and restructuring expense, and the efficiency ratio to provide information for investors to effectively analyze financial trends of ongoing business activities, and to enhance comparability with peers across the financial sector. |
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Reconciliations from the Company's GAAP income from continuing operations before income taxes to non-GAAP pre-tax, pre-provision income; from GAAP total operating expense to non-GAAP total operating expense excluding amortization of intangibles, goodwill impairment, and restructuring; and from GAAP efficiency ratio to Non-GAAP efficiency ratio (FTE basis), excluding amortization of intangibles, goodwill impairment, and restructuring, are presented below: |
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Three Months Ended | |||||||||||||||||||||||||||
(In thousands) |
September 30, 2017 |
June 30, 2017 |
March 31, 2017 |
December 31, 2016 |
September 30, 2016 |
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Income before income taxes (GAAP) | $ | 27,980 | $ | 33,456 | $ | 21,549 | $ | 24,762 | $ | 28,351 | |||||||||||||||||
ADD BACK: Provision/ (credit) for loan losses | (432 | ) | (6,114 | ) | (181 | ) | (1,128 | ) | (138 | ) | |||||||||||||||||
Pre-tax, pre-provision income (non-GAAP) | $ | 27,548 | $ | 27,342 | $ | 21,368 | $ | 23,634 | $ | 28,213 | |||||||||||||||||
Total operating expense (GAAP) | $ | 69,346 | $ | 67,821 | $ | 68,780 | $ | 71,843 | $ | 61,670 | |||||||||||||||||
Less: Amortization of intangibles | 1,426 | 1,426 | 1,426 | 1,542 | 1,568 | ||||||||||||||||||||||
Less: Goodwill impairment | — | — | — | 9,528 | — | ||||||||||||||||||||||
Total operating expense (excluding amortization of intangibles, goodwill impairment, and restructuring) (non-GAAP) | $ | 67,920 | $ | 66,395 | $ | 67,354 | $ | 60,773 | $ | 60,102 | |||||||||||||||||
Net interest income | $ | 56,627 | $ | 57,145 | $ | 53,642 | $ | 51,519 | $ | 49,871 | |||||||||||||||||
Total core fees and income | 39,067 | 37,226 | 36,320 | 38,499 | 37,896 | ||||||||||||||||||||||
Total other income | 1,200 | 792 | 186 | 5,459 | 2,116 | ||||||||||||||||||||||
FTE income | 2,899 | 2,923 | 2,820 | 2,754 | 2,523 | ||||||||||||||||||||||
Total revenue (FTE basis) | $ | 99,793 | $ | 98,086 | $ | 92,968 | $ | 98,231 | $ | 92,406 | |||||||||||||||||
Efficiency Ratio (GAAP) | 71.57 | % | 71.27 | % | 76.30 | % | 75.25 | % | 68.61 | % | |||||||||||||||||
Efficiency Ratio, FTE Basis excluding amortization of intangibles, goodwill impairment, and restructuring (non-GAAP) | 68.06 | % | 67.69 | % | 72.45 | % | 61.87 | % | 65.04 | % | |||||||||||||||||
Nine Months Ended | ||||||||||
(In thousands) |
September 30, 2017 |
September 30, 2016 |
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Income before income taxes (GAAP) | $ | 82,985 | $ | 76,444 | ||||||
ADD BACK: Provision/ (credit) for loan losses | (6,727 | ) | (5,806 | ) | ||||||
Pre-tax, pre-provision income (non-GAAP) | $ | 76,258 | $ | 70,638 | ||||||
Total operating expense (GAAP) | $ | 205,947 | $ | 193,110 | ||||||
Less: Amortization of intangibles | 4,278 | 4,740 | ||||||||
Less: Restructuring | — | 2,017 | ||||||||
Total operating expense (excluding amortization of intangibles, goodwill impairment, and restructuring) (non-GAAP) | $ | 201,669 | $ | 186,353 | ||||||
Net interest income | $ | 167,414 | $ | 148,919 | ||||||
Total core fees and income | 112,613 | 113,189 | ||||||||
Total other income | 2,178 | 1,640 | ||||||||
FTE income | 8,642 | 7,376 | ||||||||
Total revenue (FTE basis) | $ | 290,847 | $ | 271,124 | ||||||
Efficiency Ratio (GAAP) | 72.98 | % | 73.22 | % | ||||||
Efficiency Ratio, FTE Basis excluding amortization of intangibles, goodwill impairment, and restructuring (non-GAAP) | 69.34 | % | 68.73 | % | ||||||
(7) |
The Company uses certain non-GAAP financial measures, such as: net income attributable to the Company excluding notable items and diluted earnings per share excluding notable items to provide information for investors to effectively analyze financial trends of ongoing business activities, and to enhance comparability with peers across the financial sector. |
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Reconciliations from the Company's GAAP net income attributable to the Company to non-GAAP net income attributable to the Company excluding notable items and from GAAP diluted earnings per share to non-GAAP diluted earnings per share excluding notable items are presented below: |
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Three Months Ended | ||||||||||||||||||||||||||
(In thousands, except share and per share data) |
September 30, 2017 |
June 30, 2017 |
March 31, 2017 |
December 31, 2016 |
September 30, 2016 |
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Net income attributable to the Company (GAAP) | $ | 19,803 | $ | 23,406 | $ | 15,662 | $ | 17,552 | $ | 19,636 | ||||||||||||||||
LESS: Gain on sale of offices | — | — | — | 2,862 | — | |||||||||||||||||||||
ADD BACK: Impairment of goodwill | — | — | — | 9,528 | — | |||||||||||||||||||||
Tax effect at 35% statutory rate | — | — | — | (2,333 | ) | — | ||||||||||||||||||||
Net income attributable to the Company
excluding notable items (non-GAAP) |
$ | 19,803 | $ | 23,406 | $ | 15,662 | $ | 21,885 | $ | 19,636 | ||||||||||||||||
Net Income Attributable to the Common Shareholders, treasury stock method (GAAP) | $ | 18,657 | $ | 22,829 | $ | 14,496 | $ | 15,755 | $ | 18,630 | ||||||||||||||||
LESS: Gain on sale of offices | — | — | — | 2,862 | — | |||||||||||||||||||||
ADD BACK: Impairment of goodwill | — | — | — | 9,528 | — | |||||||||||||||||||||
Tax effect at 35% statutory rate | — | — | — | (2,333 | ) | — | ||||||||||||||||||||
Net Income Attributable to the Common Shareholders, treasury stock method, excluding notable items (non-GAAP) | $ | 18,657 | $ | 22,829 | $ | 14,496 | $ | 20,088 | $ | 18,630 | ||||||||||||||||
Weighted average diluted shares outstanding (3) | 84,888,311 | 84,741,680 | 84,560,918 | 83,438,137 | 83,562,283 | |||||||||||||||||||||
Diluted Total Earnings per Share (GAAP) | $ | 0.22 | $ | 0.27 | $ | 0.17 | $ | 0.19 | $ | 0.22 | ||||||||||||||||
Diluted Total Earnings per Share, excluding notable items (non-GAAP) | $ | 0.22 | $ | 0.27 | $ | 0.17 | $ | 0.24 | $ | 0.22 | ||||||||||||||||
(8) |
The Company uses certain non-GAAP financial measures, such as: net interest income excluding interest recovered on previous nonaccrual loans and net interest margin excluding interest recovered on previous nonaccrual loans, also referred to as core net interest margin, to provide information for investors to effectively analyze financial trends of ongoing business activities, and to enhance comparability with peers across the financial sector. |
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Reconciliations from the Company's GAAP net interest income to non-GAAP net interest income excluding interest recovered on previous nonaccrual loans; and from GAAP net interest margin to non-GAAP net interest margin excluding interest recovered on previous nonaccrual loans, are presented below: |
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Three Months Ended | |||||||||||||||||||||||||||
(In thousands) |
September 30, 2017 |
June 30, 2017 |
March 31, 2017 |
December 31, 2016 |
September 30, 2016 |
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Net interest income (GAAP basis) | $ | 56,627 | $ | 57,145 | $ | 53,642 | $ | 51,519 | $ | 49,871 | |||||||||||||||||
ADD: FTE income | 2,899 | 2,923 | 2,820 | 2,754 | 2,523 | ||||||||||||||||||||||
Net interest income, FTE basis | 59,526 | 60,068 | 56,462 | 54,273 | 52,394 | ||||||||||||||||||||||
LESS: Interest recovered on previously nonaccrual loans | 133 | 1,971 | 299 | 365 | 343 | ||||||||||||||||||||||
Net interest income, FTE basis, excluding interest recovered on previously nonaccrual loans (non-GAAP) | 59,393 | 58,097 | 56,163 | 53,908 | 52,051 | ||||||||||||||||||||||
Net Interest Margin (FTE basis) | 3.02 | % | 3.07 | % | 2.94 | % | 2.88 | % | 2.88 | % | |||||||||||||||||
Net Interest Margin, FTE basis, excluding interest recovered on previously nonaccrual loans (non-GAAP) - also referred to as core Net Interest Margin | 3.02 | % | 2.97 | % | 2.92 | % | 2.86 | % | 2.86 | % | |||||||||||||||||
(9) |
Interest income on Non-taxable Investments and Loans are presented on an FTE basis using the federal statutory rate of 35% for each period presented. |
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(10) |
Average Loans includes Loans Held for Sale and Nonaccrual Loans. Average Deposits includes Deposits Held for Sale, if any. |
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(11) |
The concentration of the Private Banking loan data and credit quality is primarily based on the location of the lender's regional offices. |
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(12) |
Accruing substandard loans include loans that are classified as substandard but are still accruing interest income. Boston Private Bank & Trust Company may classify a loan as substandard where known information about possible credit problems of the related borrowers causes management to have doubts as to the ability of such borrowers to comply with the present repayment terms and which may result in disclosure of such loans as nonaccrual at some time in the future. |
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(13) |
At September 30, 2017 June 30, 2017, March 31, 2017, December 31, 2016, and September 30, 2016, the Company had no loans outstanding more than 90 days past due but still on accrual status. |
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(14) |
Average Total Deposits is the sum of Average Total Interest-Bearing Deposits and Average Noninterest Bearing Demand Deposits. |
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