BOSTON--(BUSINESS WIRE)--Boston Private Financial Holdings, Inc. (NASDAQ: BPFH) (the “Company” or “BPFH”) today reported second quarter 2020 Net loss attributable to the Company of $(3.3) million, compared to Net income attributable to the Company of $0.8 million for the first quarter of 2020 and $19.4 million for the second quarter of 2019. Second quarter 2020 Diluted loss per share were $(0.04), compared to Diluted earnings per share of $0.01 in the first quarter of 2020 and $0.22 in the second quarter of 2019.
"I am proud of the way our employees continue to prioritize the health and financial well-being of our clients as we all navigated the challenging environment during the second quarter," said Anthony DeChellis, CEO of Boston Private. "This quarter's financial reflects continued reserve build related to the uncertain macroeconomic environment as a result of the pandemic. Our pre-tax, pre-provision income increased linked quarter, while our Wealth Management & Trust segment delivered net inflows for the second straight quarter.
"Our board declared a dividend of $0.06 per common share, compared to $0.12 in the prior quarter. This prudent action reflects our Company's conservative approach to liquidity and capital management as we adjust our dividend policy to reflect our current strategy."
Summary Financial Results - Reported |
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% Change |
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($ in millions, except for per share data) |
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2Q20 |
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1Q20 |
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2Q19 |
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LQ |
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Y/Y |
Net income/(loss) |
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$(3.3) |
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$0.8 |
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$19.4 |
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nm |
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nm |
Diluted earnings/(loss) per share |
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$(0.04) |
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$0.01 |
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$0.22 |
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nm |
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nm |
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Non-GAAP Financial Measures: |
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Pre-tax, pre-provision income |
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$20.1 |
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$17.9 |
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$26.2 |
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13% |
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(23)% |
Return on average common equity ("ROACE") |
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(1.6)% |
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0.4% |
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9.8% |
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Return on average tangible common equity ("ROATCE") |
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(1.4)% |
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0.7% |
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11.1% |
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nm = not meaningful |
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The Company's reported financial results decreased linked quarter and year-over-year primarily as a result of the total provision for credit losses of $25.4 million in the second quarter of 2020. Pre-tax, pre-provision income increased 13% linked quarter primarily driven by higher other income and net interest income, partially offset by higher noninterest expense.
Net Interest Income and Margin |
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% Change |
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($ in millions) |
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2Q20 |
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1Q20 |
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2Q19 |
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LQ |
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Y/Y |
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Net interest income |
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$58.9 |
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$57.3 |
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$57.5 |
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3 |
% |
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3 |
% |
Net interest margin |
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2.75% |
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2.76% |
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2.78% |
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Net interest income for the second quarter of 2020 was $58.9 million, a 3% increase linked quarter and a 3% increase year-over-year. The linked quarter increase was primarily driven by lower funding costs, PPP-related income and prepayment penalties, partially offset by lower interest income.
Net interest margin decreased 1 basis point on a linked quarter basis to 2.75%. Total cost of funds declined 33 basis points to 0.50% driven by lower deposit costs, while yields on interest earning assets declined 32 basis points to 3.22%.
Noninterest Income |
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% Change |
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($ in millions) |
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2Q20 |
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1Q20 |
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2Q19 |
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LQ |
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Y/Y |
Wealth management and trust fees |
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$17.3 |
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$18.4 |
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$18.9 |
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(6)% |
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(9)% |
Investment management fees |
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1.8 |
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1.9 |
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2.5 |
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(8)% |
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(28)% |
Private banking fees 1 |
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2.6 |
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2.6 |
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2.9 |
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—% |
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(11)% |
Total core fees and income |
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$21.6 |
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$22.9 |
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$24.3 |
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(5)% |
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(11)% |
Total other income |
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1.0 |
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(1.4) |
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0.1 |
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nm |
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nm |
Total noninterest income |
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$22.7 |
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$21.5 |
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$24.4 |
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5 % |
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(7)% |
1 Private banking fees includes Other banking fee income and Gain/(loss) on sale of loans, net |
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Total core fees and income for the second quarter of 2020 was $21.6 million, a 5% decrease linked quarter. The linked quarter decrease was primarily driven by lower Wealth management and trust fees, which declined as a result of lower equity market values at the end of the first quarter of 2020.
Assets Under Management / Advisory |
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% Change |
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($ in millions) |
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2Q20 |
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1Q20 |
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2Q19 |
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LQ |
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Y/Y |
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Wealth Management and Trust |
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$14,889 |
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$13,497 |
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$14,649 |
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10 |
% |
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2 |
% |
Other 2 |
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1,067 |
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1,016 |
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1,550 |
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5 |
% |
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(31) |
% |
Total assets under management / advisory |
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$15,956 |
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$14,513 |
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$16,199 |
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10 |
% |
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(2) |
% |
2 Includes results from Dalton, Greiner, Hartman, Maher & Co, LLC ("DGHM") |
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Total assets under management / advisory were $16.0 billion at the end of the second quarter of 2020, a 10% increase linked quarter. The linked quarter increase was primarily driven by the impact of favorable market action during the second quarter.
Total net flows were negative $40 million during the second quarter of 2020. The Wealth Management and Trust segment had net inflows of $60 million.
Noninterest Expense |
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% Change |
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($ in millions) |
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2Q20 |
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1Q20 |
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2Q19 |
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LQ |
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Y/Y |
Salaries and employee benefits |
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$33.9 |
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$35.1 |
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$32.7 |
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(3)% |
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4% |
Occupancy and equipment |
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7.6 |
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7.6 |
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7.9 |
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(1)% |
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(4)% |
Information systems |
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7.1 |
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6.7 |
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5.1 |
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6% |
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38% |
Professional services |
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3.4 |
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3.6 |
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3.3 |
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(4)% |
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4% |
Marketing and business development |
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2.3 |
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1.9 |
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1.9 |
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22% |
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20% |
Amortization of intangibles |
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0.7 |
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0.7 |
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0.7 |
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(2)% |
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4% |
FDIC insurance |
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0.8 |
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— |
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0.6 |
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nm |
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31% |
Other |
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5.6 |
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5.2 |
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3.5 |
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7% |
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62% |
Total noninterest expense |
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$61.5 |
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$60.9 |
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$55.7 |
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1 % |
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10 % |
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Memo: Excluding Off-Balance Sheet Provision |
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Provision expense for unfunded loan commitments |
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$2.8 |
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$1.8 |
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— |
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55% |
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nm |
Total noninterest expense (non-GAAP) |
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$58.6 |
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$59.1 |
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$55.7 |
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(1)% |
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5 % |
Total noninterest expense for the second quarter of 2020 was $61.5 million, which includes $2.8 million of provision expense related to unfunded loan commitments recognized in Other expense.
Excluding the provision expense for unfunded loan commitments, total noninterest expense (non-GAAP) for the second quarter of 2020 was $58.6 million, a decrease of 1% linked quarter and an increase of 5% year-over-year. The linked quarter decrease was driven primarily by lower salaries and benefits expense, while the year-over-year increase was driven primarily by higher Information systems expense from technology initiatives placed in service.
Income Tax Expense
The Company's effective tax rate for the second quarter of 2020 was negative as a result of moderate positive income tax expense despite a pre-tax loss.
Loans - QTD Averages & Yields |
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% Change |
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($ in millions) |
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2Q20 |
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1Q20 |
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2Q19 |
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LQ |
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Y/Y |
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Commercial and industrial |
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$1,037 |
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$1,149 |
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$1,092 |
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(10)% |
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(5)% |
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Paycheck Protection Program ("PPP") |
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284 |
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— |
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— |
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nm |
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nm |
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Commercial real estate |
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2,659 |
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2,582 |
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2,507 |
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3% |
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6% |
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Construction and land |
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233 |
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233 |
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203 |
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—% |
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15% |
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Residential |
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2,863 |
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2,851 |
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3,009 |
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—% |
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(5)% |
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Home equity |
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88 |
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86 |
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91 |
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3% |
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(3)% |
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Other consumer |
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124 |
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132 |
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125 |
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(6)% |
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—% |
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Total loans |
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$7,289 |
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$7,034 |
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$7,026 |
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4 % |
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4 % |
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Total loans, excluding PPP (non-GAAP) |
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$7,005 |
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$7,034 |
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$7,026 |
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— % |
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— % |
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Total loan yields |
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3.42 |
% |
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3.75 |
% |
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4.07 |
% |
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(0.33)% |
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(0.65)% |
- Average total loans in the second quarter of 2020 increased 4% year-over-year reflecting the addition of $283.6 million of PPP loans in the second quarter of 2020.
- Average total loans, excluding PPP (non-GAAP) in the second quarter of 2020 were flat linked quarter and year-over-year.
- Linked quarter, Commercial and industrial loans declined 10% primarily driven by the payoff of large loans and lower line usage.
- Linked quarter, Commercial real estate loans increased 3% primarily driven by increased loan balances attributable to the debt service reserve program. Excluding the debt service reserve program, Commercial real estate loans were flat for the quarter.
Deposits - QTD Averages & Costs |
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% Change |
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($ in millions) |
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2Q20 |
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1Q20 |
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2Q19 |
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LQ |
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Y/Y |
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Non-interest bearing deposits |
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2,214 |
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2,046 |
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1,927 |
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8 |
% |
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15 |
% |
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Interest bearing deposits |
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5,036 |
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5,061 |
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4,664 |
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— |
% |
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8 |
% |
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Total deposits |
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$7,250 |
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$7,107 |
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$6,590 |
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2 |
% |
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10 |
% |
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Cost of total deposits |
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0.41 |
% |
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0.72 |
% |
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0.88 |
% |
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(0.31) |
% |
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(0.47) |
% |
Cost of total interest-bearing deposits |
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0.59 |
% |
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1.02 |
% |
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1.25 |
% |
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(0.43) |
% |
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(0.66) |
% |
- Average total deposits in the second quarter of 2020 increased 2% linked quarter and 10% year-over-year.
- Linked quarter, average total deposits increased primarily driven by a higher average non-interest bearing deposits of commercial clients.
- Year-over-year, average non-interest bearing deposits increased 15% primarily driven by higher commercial client balances.
- Year-over-year, average interest bearing deposits increased 8%, primarily driven by higher commercial client money market balances and wealth sweep deposits, partially offset by lower brokered CD balances.
Provision and Asset Quality |
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($ in millions) |
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2Q20 |
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1Q20 |
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4Q19 |
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3Q19 |
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2Q19 |
Provision and Allowance |
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Provision/(credit) for loan losses |
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$22.6 |
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$17.0 |
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$(3.7) |
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$0.2 |
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$1.4 |
Provision for unfunded loan commitments |
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2.8 |
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1.8 |
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— |
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— |
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— |
Total Provision for credit losses |
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$25.4 |
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$18.8 |
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$(3.7) |
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$0.2 |
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$1.4 |
Allowance for loan losses as a % of Total loans |
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1.22% |
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0.97% |
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1.03% |
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1.07% |
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1.06% |
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Asset Quality |
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Total net loans (charged-off)/ recovered |
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(1.5) |
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(0.3) |
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0.3 |
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0.1 |
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(0.1) |
Total nonaccrual loans |
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25.6 |
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24.3 |
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16.1 |
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17.6 |
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17.2 |
Nonaccrual loans as a % of Total loans |
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0.35% |
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0.35% |
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0.23% |
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0.25% |
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0.24% |
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Special Mention Loans (Criticized Loans) |
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$191.9 |
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$92.6 |
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$52.0 |
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$58.1 |
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$70.7 |
Classified Loans |
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114.2 |
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112.3 |
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74.0 |
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80.8 |
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71.0 |
Total criticized and classified loans |
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$306.1 |
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$204.9 |
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$126.1 |
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$139.0 |
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$141.7 |
Total Provision for credit losses of $25.4 million during the second quarter of 2020 was primarily driven by the deterioration of the macroeconomic outlook as a result of the COVID-19 pandemic and increased weightings of more severe scenarios in the CECL model. The allowance for loan losses as a percentage of total loans excluding PPP loans was 1.28% as of June 30, 2020.
Total criticized and classified loans as of June 30, 2020 was $306.1 million, an increase of $101.2 million, or 49%, linked quarter and $164.4 million, or 116%, year-over-year. The increase in criticized and classified loans during the second quarter of 2020 was primarily driven by the downgrade of commercial real estate loans to the special mention category, which represents loans where the borrower is affected by unfavorable economic conditions or has adverse operating trends but has not yet reached the point of jeopardizing loan repayment.
Capital |
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2Q20 |
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1Q20 |
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4Q19 |
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3Q19 |
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2Q19 |
Tangible common equity/ Tangible assets (non-GAAP) |
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8.3% |
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8.8% |
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8.6% |
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8.6% |
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8.4% |
Tangible book value per share (non-GAAP) |
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$9.25 |
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$9.31 |
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$9.02 |
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$8.90 |
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$8.71 |
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Regulatory Capital Ratios: 3 |
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Tier 1 common equity |
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11.1% |
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11.2% |
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11.4% |
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11.2% |
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11.2% |
Tier 1 risk-based capital |
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12.6% |
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12.7% |
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13.0% |
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12.8% |
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12.7% |
Total risk-based capital |
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13.9% |
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13.8% |
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14.1% |
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13.9% |
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13.9% |
Tier 1 leverage capital |
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9.2% |
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9.7% |
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9.8% |
|
9.7% |
|
9.6% |
3 Current quarter information is presented based on estimated data. |
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The Company's regulatory capital ratios remained generally flat linked quarter. The declines in Tangible common equity/Tangible assets (non-GAAP) and the Tier 1 leverage ratio are primarily driven by asset growth, which was associated with PPP loans.
Dividend Payments
Concurrent with the release of second quarter 2020 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 August 7, 2020, and the payment date is August 21, 2020.
Non-GAAP Financial Measures
The Company uses certain non-GAAP financial measures to provide information for investors to effectively analyze financial trends of ongoing business activities, and to enhance comparability with peers across the financial sector.
These non-GAAP financial measures include: return on average common equity; return on average tangible common equity; pre-tax, pre-provision income; tangible common equity / tangible assets, total noninterest expense excluding intangibles; total noninterest expense excluding provision for off-balance sheet commitments; and the efficiency ratio excluding amortization of intangibles; net income/(loss) attributable to the Company excluding notable items; 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.
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 16 of the attached financial statements.
Conference Call
Management will hold a conference call at 8:00 a.m. Eastern Time on Wednesday, July 29, 2020, to discuss the financial results, business highlights and outlook. To access the call:
Dial In #: (888) 317-6003
Elite Entry Number: 3768361
Replay Information:
Available from July 29, 2020 at 12:00 p.m. Eastern Time until August 5, 2020
Dial In #: (877) 344-7529
Conference Number: 10146449
The call will be simultaneously webcast and may be accessed on www.bostonprivate.com.
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 length and extent of the economic contraction as a result of the COVID-19 pandemic; continued deterioration in employment levels, general business and economic conditions on a national basis and in the local markets in which the Company operates; 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 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. |
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Consolidated Balance Sheets |
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Unaudited ($ in thousands, except share and per share data) |
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|
2Q20 |
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1Q20 |
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4Q19 |
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3Q19 |
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2Q19 |
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ASSETS: |
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||||||||||
Cash and cash equivalents |
$ |
179,027 |
|
|
$ |
61,714 |
|
|
$ |
292,479 |
|
|
$ |
78,010 |
|
|
$ |
65,756 |
|
Investment securities available-for-sale |
1,002,970 |
|
|
993,166 |
|
|
978,284 |
|
|
935,538 |
|
|
966,731 |
|
|||||
Investment securities held-to-maturity |
42,495 |
|
|
45,395 |
|
|
48,212 |
|
|
51,379 |
|
|
54,482 |
|
|||||
Equity securities at fair value |
24,492 |
|
|
23,080 |
|
|
18,810 |
|
|
21,780 |
|
|
19,092 |
|
|||||
Stock in Federal Home Loan Bank and Federal Reserve Bank |
42,407 |
|
|
45,273 |
|
|
39,078 |
|
|
47,756 |
|
|
64,453 |
|
|||||
Loans held for sale |
9,786 |
|
|
7,671 |
|
|
7,386 |
|
|
6,658 |
|
|
3,640 |
|
|||||
Loans |
7,332,954 |
|
|
7,043,338 |
|
|
6,976,704 |
|
|
7,067,151 |
|
|
7,080,260 |
|
|||||
Less: Allowance for loan losses |
89,324 |
|
|
68,211 |
|
|
71,982 |
|
|
75,359 |
|
|
75,067 |
|
|||||
Loans, net of allowance for loan losses |
7,243,630 |
|
|
6,975,127 |
|
|
6,904,722 |
|
|
6,991,792 |
|
|
7,005,193 |
|
|||||
Premises and equipment, net |
43,805 |
|
|
43,544 |
|
|
44,527 |
|
|
42,658 |
|
|
40,244 |
|
|||||
Goodwill |
57,607 |
|
|
57,607 |
|
|
57,607 |
|
|
57,607 |
|
|
57,607 |
|
|||||
Intangible assets, net |
8,935 |
|
|
9,637 |
|
|
10,352 |
|
|
10,622 |
|
|
10,884 |
|
|||||
Accrued interest receivable |
24,918 |
|
|
24,054 |
|
|
24,175 |
|
|
24,851 |
|
|
26,411 |
|
|||||
Deferred income taxes, net |
9,116 |
|
|
5,630 |
|
|
11,383 |
|
|
15,704 |
|
|
17,183 |
|
|||||
Right-of-use assets |
94,143 |
|
|
98,896 |
|
|
102,075 |
|
|
107,045 |
|
|
110,880 |
|
|||||
Other assets |
375,575 |
|
|
355,532 |
|
|
291,411 |
|
|
299,544 |
|
|
270,317 |
|
|||||
TOTAL ASSETS |
$ |
9,158,906 |
|
|
$ |
8,746,326 |
|
|
$ |
8,830,501 |
|
|
$ |
8,690,944 |
|
|
$ |
8,712,873 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
LIABILITIES: |
|
|
|
|
|
|
|
|
|
||||||||||
Deposits |
$ |
7,427,397 |
|
|
$ |
6,835,572 |
|
|
$ |
7,241,476 |
|
|
$ |
6,658,242 |
|
|
$ |
6,437,963 |
|
Securities sold under agreements to repurchase |
46,623 |
|
|
45,319 |
|
|
53,398 |
|
|
48,860 |
|
|
62,372 |
|
|||||
Federal funds purchased |
— |
|
|
145,000 |
|
|
— |
|
|
230,000 |
|
|
135,000 |
|
|||||
Federal Home Loan Bank borrowings |
426,313 |
|
|
491,254 |
|
|
350,829 |
|
|
570,904 |
|
|
920,068 |
|
|||||
Junior subordinated debentures |
106,363 |
|
|
106,363 |
|
|
106,363 |
|
|
106,363 |
|
|
106,363 |
|
|||||
Lease liabilities |
108,234 |
|
|
113,574 |
|
|
117,214 |
|
|
122,799 |
|
|
126,740 |
|
|||||
Other liabilities |
218,771 |
|
|
180,452 |
|
|
140,820 |
|
|
143,607 |
|
|
124,370 |
|
|||||
TOTAL LIABILITIES |
8,333,701 |
|
|
7,917,534 |
|
|
8,010,100 |
|
|
7,880,775 |
|
|
7,912,876 |
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
REDEEMABLE NONCONTROLLING INTERESTS (“RNCI”) |
— |
|
|
— |
|
|
1,383 |
|
|
1,481 |
|
|
1,786 |
|
|||||
SHAREHOLDERS' EQUITY: |
|
|
|
|
|
|
|
|
|
||||||||||
Common stock, $1.00 par value; authorized: 170,000,000 shares |
82,058 |
|
|
81,800 |
|
|
83,266 |
|
|
83,242 |
|
|
83,774 |
|
|||||
Additional paid-in capital |
594,463 |
|
|
593,167 |
|
|
600,708 |
|
|
599,877 |
|
|
603,869 |
|
|||||
Retained earnings |
118,647 |
|
|
131,761 |
|
|
127,469 |
|
|
116,210 |
|
|
106,443 |
|
|||||
Accumulated other comprehensive income |
30,037 |
|
|
22,064 |
|
|
7,575 |
|
|
9,359 |
|
|
4,125 |
|
|||||
TOTAL SHAREHOLDERS' EQUITY |
825,205 |
|
|
828,792 |
|
|
819,018 |
|
|
808,688 |
|
|
798,211 |
|
|||||
TOTAL LIABILITIES, RNCI, AND SHAREHOLDERS' EQUITY |
$ |
9,158,906 |
|
|
$ |
8,746,326 |
|
|
$ |
8,830,501 |
|
|
$ |
8,690,944 |
|
|
$ |
8,712,873 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
BOSTON PRIVATE FINANCIAL HOLDINGS, INC. |
|
|
|
|
|
|
|
|
|
||||||||||
Consolidated Income Statements |
|||||||||||||||||||
Unaudited ($ in thousands, except share and per share data) |
|
||||||||||||||||||
|
2Q20 |
|
1Q20 |
|
4Q19 |
|
3Q19 |
|
2Q19 |
||||||||||
REVENUE: |
|
||||||||||||||||||
Interest income |
$ |
68,819 |
|
|
$ |
73,082 |
|
|
$ |
75,291 |
|
|
$ |
77,604 |
|
|
$ |
78,728 |
|
Interest expense |
9,881 |
|
|
15,825 |
|
|
19,166 |
|
|
21,451 |
|
|
21,268 |
|
|||||
Net interest income |
58,938 |
|
|
57,257 |
|
|
56,125 |
|
|
56,153 |
|
|
57,460 |
|
|||||
Provision/(credit) for loan losses 4 |
22,604 |
|
|
16,962 |
|
|
(3,668) |
|
|
167 |
|
|
1,363 |
|
|||||
Net interest income after provision/(credit) for loan losses |
36,334 |
|
|
40,295 |
|
|
59,793 |
|
|
55,986 |
|
|
56,097 |
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Wealth management and trust fees 5 |
17,261 |
|
|
18,371 |
|
|
18,720 |
|
|
19,067 |
|
|
18,912 |
|
|||||
Investment management fees |
1,770 |
|
|
1,925 |
|
|
2,554 |
|
|
2,496 |
|
|
2,455 |
|
|||||
Private banking fee income |
2,395 |
|
|
2,490 |
|
|
2,924 |
|
|
2,658 |
|
|
2,867 |
|
|||||
Gain on sale of loans, net |
204 |
|
|
100 |
|
|
557 |
|
|
934 |
|
|
58 |
|
|||||
Total core fees and income |
21,630 |
|
|
22,886 |
|
|
24,755 |
|
|
25,155 |
|
|
24,292 |
|
|||||
Total other income |
1,032 |
|
|
(1,365) |
|
|
2,038 |
|
|
(29) |
|
|
88 |
|
|||||
TOTAL REVENUE 6 |
81,600 |
|
|
78,778 |
|
|
82,918 |
|
|
81,279 |
|
|
81,840 |
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
NONINTEREST EXPENSE: |
|
|
|
|
|
|
|
|
|
||||||||||
Salaries and employee benefits |
33,937 |
|
|
35,096 |
|
|
34,186 |
|
|
31,684 |
|
|
32,706 |
|
|||||
Occupancy and equipment |
7,560 |
|
|
7,646 |
|
|
7,578 |
|
|
8,260 |
|
|
7,852 |
|
|||||
Information systems |
7,113 |
|
|
6,725 |
|
|
6,476 |
|
|
5,169 |
|
|
5,137 |
|
|||||
Professional services |
3,446 |
|
|
3,601 |
|
|
3,920 |
|
|
4,435 |
|
|
3,313 |
|
|||||
Marketing and business development |
2,313 |
|
|
1,890 |
|
|
2,017 |
|
|
1,403 |
|
|
1,934 |
|
|||||
Amortization of intangibles |
702 |
|
|
715 |
|
|
676 |
|
|
671 |
|
|
672 |
|
|||||
FDIC insurance |
767 |
|
|
— |
|
|
(19) |
|
|
59 |
|
|
585 |
|
|||||
Other 4 |
5,615 |
|
|
5,235 |
|
|
3,623 |
|
|
3,856 |
|
|
3,460 |
|
|||||
TOTAL NONINTEREST EXPENSE |
61,453 |
|
|
60,908 |
|
|
58,457 |
|
|
55,537 |
|
|
55,659 |
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
INCOME/(LOSS) BEFORE INCOME TAXES |
(2,457) |
|
|
908 |
|
|
28,129 |
|
|
25,575 |
|
|
24,818 |
|
|||||
Income tax expense |
841 |
|
|
102 |
|
|
6,788 |
|
|
5,517 |
|
|
5,369 |
|
|||||
Net income/(loss) before attribution to noncontrolling interests |
(3,298) |
|
|
806 |
|
|
21,341 |
|
|
20,058 |
|
|
19,449 |
|
|||||
Less: Net income attributable to noncontrolling interests |
— |
|
|
6 |
|
|
97 |
|
|
96 |
|
|
69 |
|
|||||
NET INCOME/(LOSS) ATTRIBUTABLE TO THE COMPANY |
$ |
(3,298) |
|
|
$ |
800 |
|
|
$ |
21,244 |
|
|
$ |
19,962 |
|
|
$ |
19,380 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjustments, treasury stock method 7 |
— |
|
|
414 |
|
|
98 |
|
|
304 |
|
|
(816) |
|
|||||
NET INCOME/(LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS |
$ |
(3,298) |
|
|
$ |
1,214 |
|
|
$ |
21,342 |
|
|
$ |
20,266 |
|
|
$ |
18,564 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
COMMON SHARE DATA: |
|
|
|
|
|
|
|
|
|
||||||||||
Weighted average basic shares outstanding |
81,929,752 |
|
|
83,005,064 |
|
|
83,238,982 |
|
|
83,631,403 |
|
|
83,565,780 |
|
|||||
Weighted average diluted shares outstanding 8 |
81,929,752 |
|
|
83,318,041 |
|
|
83,637,786 |
|
|
83,956,708 |
|
|
84,048,972 |
|
|||||
Diluted earnings/(loss) per share |
$ |
(0.04) |
|
|
$ |
0.01 |
|
|
$ |
0.26 |
|
|
$ |
0.24 |
|
|
$ |
0.22 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|||||||||||||||||||
4 In the first and second quarter of 2020, there was a $17.0 million and $22.6 million provision expense for loan losses, respectively. Additionally, in the first and second quarter of 2020, there was a $1.8 million and $2.8 million provision expense related to the off-balance sheet commitments included in Other expense, respectively.
5 Wealth management and trust fees consists of revenue from Boston Private Wealth LLC ("BPW"), KLS Professional Advisors Group, LLC ("KLS") through the effective date of its merger with BPW, and the trust operations of Boston Private Bank & Trust Company.
6 Total revenue is the sum of Net interest income, Total core fees and income, and Total other income/(loss).
7 Adjustments to Net income/(loss) attributable to the Company to arrive at Net income/(loss) attributable to common shareholders, treasury stock method, as presented in these tables, include decrease/(increase) in Noncontrolling interests redemption value.
8 For a description of the Company's policies regarding Diluted earnings per share, please refer to Part II. Item 8. “Financial Statements and Supplementary Data - Note 16: Earnings Per Share” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.
BOSTON PRIVATE FINANCIAL HOLDINGS, INC. |
|
|
|
|
||||
Consolidated Income Statements |
|
|
|
|
||||
Unaudited ($ in thousands, except share and per share data) |
|
|
|
|
||||
|
|
Six months ended June 30, |
||||||
|
|
2020 |
|
2019 |
||||
REVENUE: |
|
|
||||||
Interest income |
|
$ |
141,901 |
|
|
$ |
155,552 |
|
Interest expense |
|
25,706 |
|
|
39,754 |
|
||
Net interest income |
|
116,195 |
|
|
115,798 |
|
||
Provision/(credit) for loan losses 4 |
|
39,566 |
|
|
(63) |
|
||
Net interest income after provision/(credit) for loan losses |
|
76,629 |
|
|
115,861 |
|
||
|
|
|
|
|
||||
Wealth management and trust fees 5 |
|
35,632 |
|
|
37,970 |
|
||
Investment management fees |
|
3,695 |
|
|
5,105 |
|
||
Private banking fee income |
|
4,885 |
|
|
5,366 |
|
||
Gain on sale of loans, net |
|
304 |
|
|
131 |
|
||
Total core fees and income |
|
44,516 |
|
|
48,572 |
|
||
Total other income |
|
(333) |
|
|
1,056 |
|
||
TOTAL REVENUE 6 |
|
160,378 |
|
|
165,426 |
|
||
|
|
|
|
|
||||
NONINTEREST EXPENSE: |
|
|
|
|
||||
Salaries and employee benefits |
|
69,033 |
|
|
68,432 |
|
||
Occupancy and equipment |
|
15,206 |
|
|
16,200 |
|
||
Information systems |
|
13,838 |
|
|
10,997 |
|
||
Professional services |
|
7,047 |
|
|
6,873 |
|
||
Marketing and business development |
|
4,203 |
|
|
3,019 |
|
||
Amortization of intangibles |
|
1,417 |
|
|
1,344 |
|
||
FDIC insurance |
|
767 |
|
|
1,245 |
|
||
Restructuring |
|
— |
|
|
1,646 |
|
||
Other 4 |
|
10,850 |
|
|
6,456 |
|
||
TOTAL NONINTEREST EXPENSE |
|
122,361 |
|
|
116,212 |
|
||
|
|
|
|
|
||||
INCOME/(LOSS) BEFORE INCOME TAXES |
|
(1,549) |
|
|
49,277 |
|
||
Income tax expense |
|
943 |
|
|
10,286 |
|
||
Net income/(loss) before attribution to noncontrolling interests |
|
(2,492) |
|
|
38,991 |
|
||
Less: Net income attributable to noncontrolling interests |
|
6 |
|
|
169 |
|
||
NET INCOME/(LOSS) ATTRIBUTABLE TO THE COMPANY |
|
$ |
(2,498) |
|
|
$ |
38,822 |
|
|
|
|
|
|
||||
Adjustments, treasury stock method 7 |
|
414 |
|
|
741 |
|
||
NET INCOME/(LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS |
|
$ |
(2,084) |
|
|
$ |
39,563 |
|
|
|
|
|
|
||||
COMMON SHARE DATA |
|
|
|
|
||||
Weighted average basic shares outstanding |
|
82,464,438 |
|
|
83,426,213 |
|
||
Weighted average diluted shares outstanding 8 |
|
82,464,438 |
|
|
84,036,050 |
|
||
Diluted earnings/(loss) per share |
|
$ |
(0.03) |
|
|
$ |
0.47 |
|
|
|
|
|
|
||||
4 In the first and second quarter of 2020, there was a $17.0 million and $22.6 million provision expense for loan losses, respectively. Additionally, in the first and second quarter of 2020, there was a $1.8 million and $2.8 million provision expense related to the off-balance sheet commitments included in Other expense, respectively.
5 Wealth management and trust fees consists of revenue from Boston Private Wealth LLC ("BPW"), KLS Professional Advisors Group, LLC ("KLS") through the effective date of its merger with BPW, and the trust operations of Boston Private Bank & Trust Company.
6 Total revenue is the sum of Net interest income, Total core fees and income, and Total other income/(loss).
7 Adjustments to Net income/(loss) attributable to the Company to arrive at Net income/(loss) attributable to common shareholders, treasury stock method, as presented in these tables, include decrease/(increase) in Noncontrolling interests redemption value.
8 For a description of the Company's policies regarding Diluted earnings per share, please refer to Part II. Item 8. “Financial Statements and Supplementary Data - Note 16: Earnings Per Share” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.
BOSTON PRIVATE FINANCIAL HOLDINGS, INC. |
|
|
|
|
|
|
|
|
|
||||||||||
Consolidated Financial Highlights |
|
|
|
|
|
|
|
|
|
||||||||||
Unaudited ($ in thousands, except share and per share data) |
|
|
|
|
|
|
|
|
|
||||||||||
|
2Q20 |
|
1Q20 |
|
4Q19 |
|
3Q19 |
|
2Q19 |
||||||||||
KEY STATISTICS: |
|
|
|
|
|
|
|
|
|
||||||||||
Return on average assets (non-GAAP) 9 |
(0.15) |
% |
|
0.04 |
% |
|
0.96 |
% |
|
0.91 |
% |
|
0.90 |
% |
|||||
ROACE (non-GAAP) 9 |
(1.58) |
% |
|
0.39 |
% |
|
10.29 |
% |
|
9.80 |
% |
|
9.83 |
% |
|||||
ROATCE (non-GAAP) 9 |
(1.43) |
% |
|
0.72 |
% |
|
11.51 |
% |
|
10.99 |
% |
|
11.06 |
% |
|||||
Efficiency ratio (non-GAAP) 9 |
74.4 |
% |
|
76.4 |
% |
|
69.7 |
% |
|
67.5 |
% |
|
67.2 |
% |
|||||
Noninterest income to total revenue |
27.8 |
% |
|
27.3 |
% |
|
32.3 |
% |
|
30.9 |
% |
|
29.8 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest margin |
2.75 |
% |
|
2.76 |
% |
|
2.70 |
% |
|
2.72 |
% |
|
2.78 |
% |
|||||
Average loan to average deposit ratio |
100.5 |
% |
|
99.0 |
% |
|
101.6 |
% |
|
105.9 |
% |
|
106.6 |
% |
|||||
Cost of total deposits |
0.41 |
% |
|
0.72 |
% |
|
0.86 |
% |
|
0.92 |
% |
|
0.88 |
% |
|||||
Cost of interest-bearing deposits |
0.59 |
% |
|
1.02 |
% |
|
1.20 |
% |
|
1.31 |
% |
|
1.25 |
% |
|||||
Cost of total funding |
0.50 |
% |
|
0.83 |
% |
|
0.99 |
% |
|
1.12 |
% |
|
1.11 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan loss / Total loans |
1.22 |
% |
|
0.97 |
% |
|
1.03 |
% |
|
1.07 |
% |
|
1.06 |
% |
|||||
Nonperforming loans / Total loans |
0.35 |
% |
|
0.35 |
% |
|
0.23 |
% |
|
0.25 |
% |
|
0.24 |
% |
|||||
Net (charge-offs)/recoveries / Total loans 9 |
(0.08) |
% |
|
(0.02) |
% |
|
0.02 |
% |
|
0.01 |
% |
|
(0.01) |
% |
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
CAPITAL HIGHLIGHTS: |
|
|
|
|
|
|
|
|
|
||||||||||
Tier 1 common equity 3 |
$ |
731,316 |
|
|
$ |
742,044 |
|
|
$ |
745,926 |
|
|
$ |
732,980 |
|
|
$ |
726,872 |
|
Tier 1 capital 3 |
$ |
831,338 |
|
|
$ |
842,066 |
|
|
$ |
846,337 |
|
|
$ |
833,431 |
|
|
$ |
827,299 |
|
Total capital 3 |
$ |
913,936 |
|
|
$ |
914,572 |
|
|
$ |
919,573 |
|
|
$ |
910,076 |
|
|
$ |
903,675 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Risk-weighted assets ("RWA") 3 |
$ |
6,593,981 |
|
|
$ |
6,627,339 |
|
|
$ |
6,530,804 |
|
|
$ |
6,533,884 |
|
|
$ |
6,491,184 |
|
Average assets for leverage 3 |
$ |
9,009,565 |
|
|
$ |
8,691,254 |
|
|
$ |
8,659,944 |
|
|
$ |
8,588,358 |
|
|
$ |
8,617,803 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Tier 1 common equity ratio 3 |
11.09 |
% |
|
11.20 |
% |
|
11.42 |
% |
|
11.22 |
% |
|
11.20 |
% |
|||||
Tier 1 risk-based capital ratio 3 |
12.61 |
% |
|
12.71 |
% |
|
12.96 |
% |
|
12.76 |
% |
|
12.74 |
% |
|||||
Total risk-based capital ratio 3 |
13.86 |
% |
|
13.80 |
% |
|
14.08 |
% |
|
13.93 |
% |
|
13.92 |
% |
|||||
Tier 1 leverage capital ratio 3 |
9.23 |
% |
|
9.69 |
% |
|
9.77 |
% |
|
9.70 |
% |
|
9.60 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total equity / Total assets |
9.01 |
% |
|
9.48 |
% |
|
9.27 |
% |
|
9.30 |
% |
|
9.16 |
% |
|||||
Tangible common equity / Tangible assets (non-GAAP) |
8.34 |
% |
|
8.77 |
% |
|
8.57 |
% |
|
8.59 |
% |
|
8.44 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
End of period market price per share |
$ |
6.88 |
|
|
$ |
7.15 |
|
|
$ |
12.03 |
|
|
$ |
11.66 |
|
|
$ |
12.07 |
|
End of period shares outstanding |
82,058,483 |
|
81,800,486 |
|
83,265,674 |
|
83,241,952 |
|
83,774,335 |
||||||||||
Book value per common share |
$ |
10.06 |
|
|
$ |
10.13 |
|
|
$ |
9.84 |
|
|
$ |
9.71 |
|
|
$ |
9.53 |
|
Tangible book value per share (non-GAAP) |
$ |
9.25 |
|
|
$ |
9.31 |
|
|
$ |
9.02 |
|
|
$ |
8.90 |
|
|
$ |
8.71 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Common Equity Repurchase Program: |
|
|
|
|
|
|
|
|
|
||||||||||
Total shares of common stock repurchased |
— |
|
|
1,565,060 |
|
|
— |
|
|
678,165 |
|
|
— |
|
|||||
Average price paid per share of common stock |
$ |
— |
|
|
$ |
8.18 |
|
|
$ |
— |
|
|
$ |
10.61 |
|
|
$ |
— |
|
Aggregate repurchases of common stock ($ in millions) |
$ |
— |
|
|
$ |
12.8 |
|
|
$ |
— |
|
|
$ |
7.2 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
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) |
|
|
|
|
|
|
|
|
|
||||||||||
|
2Q20 |
|
1Q20 |
|
4Q19 |
|
3Q19 |
|
2Q19 |
||||||||||
ASSETS UNDER MANAGEMENT AND ADVISORY ("AUM"): |
|
|
|
|
|
|
|
|
|||||||||||
Wealth Management and Trust |
$ |
14,889,000 |
|
|
$ |
13,497,000 |
|
|
$ |
15,224,000 |
|
|
$ |
14,695,000 |
|
|
$ |
14,649,000 |
|
Other 2 |
1,067,000 |
|
|
1,016,000 |
|
|
1,544,000 |
|
|
1,533,000 |
|
|
1,550,000 |
|
|||||
TOTAL AUM |
$ |
15,956,000 |
|
|
$ |
14,513,000 |
|
|
$ |
16,768,000 |
|
|
$ |
16,228,000 |
|
|
$ |
16,199,000 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
AUM Rollforward: |
|
|
|
|
|
|
|
|
|
||||||||||
Beginning balance |
$ |
14,513,000 |
|
|
$ |
16,768,000 |
|
|
$ |
16,228,000 |
|
|
$ |
16,199,000 |
|
|
$ |
16,122,000 |
|
Net flows |
(40,000) |
|
|
150,000 |
|
|
(209,000) |
|
|
(137,000) |
|
|
(269,000) |
|
|||||
Market |
1,483,000 |
|
|
(2,405,000) |
|
|
749,000 |
|
|
166,000 |
|
|
346,000 |
|
|||||
Ending balance |
$ |
15,956,000 |
|
|
$ |
14,513,000 |
|
|
$ |
16,768,000 |
|
|
$ |
16,228,000 |
|
|
$ |
16,199,000 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
AUM Net Flows: |
|
|
|
|
|
|
|
|
|
||||||||||
Wealth Management and Trust |
$ |
60,000 |
|
|
$ |
176,000 |
|
|
$ |
(114,000) |
|
|
$ |
(100,000) |
|
|
$ |
(233,000) |
|
Other 2 |
(100,000) |
|
|
(26,000) |
|
|
(95,000) |
|
|
(37,000) |
|
|
(36,000) |
|
|||||
TOTAL NET FLOWS |
$ |
(40,000) |
|
|
$ |
150,000 |
|
|
$ |
(209,000) |
|
|
$ |
(137,000) |
|
|
$ |
(269,000) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
DEPOSITS: |
|
|
|
|
|
|
|
|
|
||||||||||
Demand deposits (non-interest bearing) |
$ |
2,293,864 |
|
|
$ |
2,020,440 |
|
|
$ |
1,971,013 |
|
|
$ |
1,947,363 |
|
|
$ |
1,854,091 |
|
Savings and NOW |
758,656 |
|
|
653,006 |
|
|
646,199 |
|
|
666,107 |
|
|
631,166 |
|
|||||
Money market |
3,753,228 |
|
|
3,468,701 |
|
|
3,969,330 |
|
|
3,366,623 |
|
|
3,228,608 |
|
|||||
Certificates of deposit |
621,649 |
|
|
693,425 |
|
|
654,934 |
|
|
678,149 |
|
|
724,098 |
|
|||||
TOTAL DEPOSITS |
$ |
7,427,397 |
|
|
$ |
6,835,572 |
|
|
$ |
7,241,476 |
|
|
$ |
6,658,242 |
|
|
$ |
6,437,963 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
LOANS: |
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial |
$ |
565,748 |
|
|
$ |
670,744 |
|
|
$ |
694,034 |
|
|
$ |
695,029 |
|
|
$ |
656,186 |
|
Paycheck Protection Program |
370,034 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|||||
Commercial tax exempt |
419,264 |
|
|
445,319 |
|
|
447,927 |
|
|
448,488 |
|
|
450,307 |
|
|||||
Commercial real estate |
2,676,708 |
|
|
2,626,299 |
|
|
2,551,274 |
|
|
2,533,346 |
|
|
2,530,556 |
|
|||||
Construction and land |
240,211 |
|
|
238,293 |
|
|
225,983 |
|
|
209,741 |
|
|
200,378 |
|
|||||
Residential |
2,859,627 |
|
|
2,841,926 |
|
|
2,839,155 |
|
|
2,964,042 |
|
|
3,025,758 |
|
|||||
Home equity |
84,588 |
|
|
89,350 |
|
|
83,657 |
|
|
84,432 |
|
|
89,930 |
|
|||||
Consumer |
116,774 |
|
|
131,407 |
|
|
134,674 |
|
|
132,073 |
|
|
127,145 |
|
|||||
TOTAL LOANS |
$ |
7,332,954 |
|
|
$ |
7,043,338 |
|
|
$ |
6,976,704 |
|
|
$ |
7,067,151 |
|
|
$ |
7,080,260 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
2 Includes results from Dalton, Greiner, Hartman, Maher & Co, LLC ("DGHM")
BOSTON PRIVATE FINANCIAL HOLDINGS, INC. |
|
|
|
|
|
|
|
|
|
||||||||||
Asset Quality |
|
|
|
|
|
|
|
|
|
||||||||||
Unaudited ($ in thousands) |
|
|
|
|
|
|
|
|
|
||||||||||
|
2Q20 |
|
1Q20 |
|
4Q19 |
|
3Q19 |
|
2Q19 |
||||||||||
CHARGE-OFFS: |
|
|
|
|
|
|
|
|
|
||||||||||
Loan charge-offs |
$ |
(1,546) |
|
|
$ |
(528) |
|
|
$ |
(285) |
|
|
$ |
(185) |
|
|
$ |
(195) |
|
Loan recoveries |
55 |
|
|
180 |
|
|
576 |
|
|
310 |
|
|
85 |
|
|||||
NET (CHARGE-OFFS)/RECOVERIES |
$ |
(1,491) |
|
|
$ |
(348) |
|
|
$ |
291 |
|
|
$ |
125 |
|
|
$ |
(110) |
|
Net charge-offs to average loans (annualized) |
(0.08) |
% |
|
(0.02) |
% |
|
0.02 |
% |
|
0.01 |
% |
|
(0.01) |
% |
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Net (Charge-offs)/Recoveries by Loan Type: |
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial |
$ |
(337) |
|
|
$ |
(473) |
|
|
$ |
118 |
|
|
$ |
95 |
|
|
$ |
(155) |
|
Commercial real estate |
— |
|
|
— |
|
|
183 |
|
|
27 |
|
|
30 |
|
|||||
Home equity |
(1,157) |
|
|
132 |
|
|
4 |
|
|
6 |
|
|
— |
|
|||||
Consumer |
3 |
|
|
(7) |
|
|
(14) |
|
|
(3) |
|
|
15 |
|
|||||
NET (CHARGE-OFFS)/RECOVERIES |
$ |
(1,491) |
|
|
$ |
(348) |
|
|
$ |
291 |
|
|
$ |
125 |
|
|
$ |
(110) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
LOAN QUALITY DATA: |
|
|
|
|
|
|
|
|
|
||||||||||
Special mention loans |
$ |
191,882 |
|
|
$ |
92,623 |
|
|
$ |
52,026 |
|
|
$ |
58,133 |
|
|
$ |
70,677 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Accruing classified loans 10 |
88,586 |
|
|
87,948 |
|
|
57,922 |
|
|
63,278 |
|
|
53,883 |
|
|||||
Nonaccrual loans |
25,604 |
|
|
24,314 |
|
|
16,103 |
|
|
17,565 |
|
|
17,155 |
|
|||||
Total classified |
114,190 |
|
|
112,262 |
|
|
74,025 |
|
|
80,843 |
|
|
71,038 |
|
|||||
Criticized and classified loans |
$ |
306,072 |
|
|
$ |
204,885 |
|
|
$ |
126,051 |
|
|
$ |
138,976 |
|
|
$ |
141,715 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans 30-89 days past due and accruing 11 |
$ |
5,535 |
|
|
$ |
14,852 |
|
|
$ |
25,945 |
|
|
$ |
4,179 |
|
|
$ |
2,434 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
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 and at June 30, 2019, the Company had one loan totaling less than $0.1 million and one loan totaling $0.9 million that was more than 90 days past due but still on accrual status, respectively. Both loans originated in the New England region. The Company had no other loans outstanding more than 90 days past due but still on accrual status in comparative periods.
BOSTON PRIVATE FINANCIAL HOLDINGS, INC. |
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Average Balances, Yields, and Rates |
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Unaudited ($ in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Average Balance |
|
Interest Income/Expense |
|
Average Yield/Rate |
|||||||||||||||||||||
|
2Q20 |
1Q20 |
2Q19 |
|
2Q20 |
1Q20 |
2Q19 |
|
2Q20 |
1Q20 |
2Q19 |
|||||||||||||||
INTEREST-EARNING ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Cash and investments: |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Taxable investment securities |
$ |
198,337 |
|
$ |
201,174 |
|
$ |
227,029 |
|
|
$ |
859 |
|
$ |
868 |
|
$ |
1,121 |
|
|
1.73 |
% |
1.73 |
% |
1.98 |
% |
Non-taxable investment securities |
316,513 |
|
315,681 |
|
304,309 |
|
|
2,005 |
|
1,998 |
|
1,901 |
|
|
2.53 |
% |
2.53 |
% |
2.50 |
% |
||||||
Mortgage-backed securities |
505,669 |
|
520,629 |
|
508,033 |
|
|
2,566 |
|
2,787 |
|
2,706 |
|
|
2.03 |
% |
2.14 |
% |
2.13 |
% |
||||||
Short-term investments and other |
186,895 |
|
147,482 |
|
130,363 |
|
|
582 |
|
1,071 |
|
1,057 |
|
|
1.23 |
% |
2.89 |
% |
3.23 |
% |
||||||
Total cash and investments |
1,207,414 |
|
1,184,966 |
|
1,169,734 |
|
|
6,012 |
|
6,724 |
|
6,785 |
|
|
1.99 |
% |
2.27 |
% |
2.32 |
% |
||||||
Loans: 12 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commercial and industrial |
1,037,285 |
|
1,148,986 |
|
1,091,903 |
|
|
9,708 |
|
10,724 |
|
11,170 |
|
|
3.70 |
% |
3.69 |
% |
4.05 |
% |
||||||
Paycheck Protection Program |
283,619 |
|
— |
|
— |
|
|
1,573 |
|
— |
|
— |
|
|
2.19 |
% |
— |
% |
— |
% |
||||||
Commercial real estate |
2,659,074 |
|
2,582,305 |
|
2,506,637 |
|
|
24,602 |
|
27,482 |
|
29,953 |
|
|
3.66 |
% |
4.21 |
% |
4.73 |
% |
||||||
Construction and land |
233,305 |
|
233,324 |
|
202,609 |
|
|
2,251 |
|
2,572 |
|
2,559 |
|
|
3.82 |
% |
4.36 |
% |
5.00 |
% |
||||||
Residential |
2,862,708 |
|
2,850,833 |
|
3,008,753 |
|
|
23,079 |
|
23,468 |
|
25,735 |
|
|
3.22 |
% |
3.29 |
% |
3.42 |
% |
||||||
Home equity |
88,307 |
|
86,048 |
|
91,384 |
|
|
650 |
|
952 |
|
1,146 |
|
|
2.96 |
% |
4.45 |
% |
5.03 |
% |
||||||
Other consumer |
124,346 |
|
132,237 |
|
124,778 |
|
|
944 |
|
1,160 |
|
1,380 |
|
|
3.05 |
% |
3.53 |
% |
4.43 |
% |
||||||
Total loans |
7,288,644 |
|
7,033,733 |
|
7,026,064 |
|
|
62,807 |
|
66,358 |
|
71,943 |
|
|
3.42 |
% |
3.75 |
% |
4.07 |
% |
||||||
Total earning assets |
8,496,058 |
|
8,218,699 |
|
8,195,798 |
|
|
68,819 |
|
73,082 |
|
78,728 |
|
|
3.22 |
% |
3.54 |
% |
3.82 |
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
LESS: Allowance for loan losses |
68,473 |
|
51,730 |
|
73,856 |
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and due from banks |
39,959 |
|
49,571 |
|
45,705 |
|
|
|
|
|
|
|
|
|
||||||||||||
Other assets |
641,657 |
|
562,851 |
|
511,859 |
|
|
|
|
|
|
|
|
|
||||||||||||
TOTAL AVERAGE ASSETS |
$ |
9,109,201 |
|
$ |
8,779,391 |
|
$ |
8,679,506 |
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
INTEREST-BEARING LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing deposits: 13 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Savings and NOW |
$ |
680,758 |
|
$ |
638,926 |
|
$ |
684,507 |
|
|
$ |
187 |
|
$ |
232 |
|
$ |
276 |
|
|
0.11 |
% |
0.15 |
% |
0.16 |
% |
Money market |
3,684,147 |
|
3,753,045 |
|
3,226,569 |
|
|
4,848 |
|
9,657 |
|
10,476 |
|
|
0.53 |
% |
1.03 |
% |
1.30 |
% |
||||||
Certificates of deposit |
671,470 |
|
668,818 |
|
752,500 |
|
|
2,300 |
|
2,907 |
|
3,763 |
|
|
1.38 |
% |
1.75 |
% |
2.01 |
% |
||||||
Total interest-bearing deposits 13 |
5,036,375 |
|
5,060,789 |
|
4,663,576 |
|
|
7,335 |
|
12,796 |
|
14,515 |
|
|
0.59 |
% |
1.02 |
% |
1.25 |
% |
||||||
Junior subordinated debentures |
106,363 |
|
106,363 |
|
106,363 |
|
|
764 |
|
917 |
|
1,080 |
|
|
2.84 |
% |
3.41 |
% |
4.02 |
% |
||||||
FHLB borrowings and other |
610,856 |
|
455,813 |
|
952,645 |
|
|
1,782 |
|
2,112 |
|
5,673 |
|
|
1.15 |
% |
1.83 |
% |
2.36 |
% |
||||||
Total interest-bearing liabilities 13 |
5,753,594 |
|
5,622,965 |
|
5,722,584 |
|
|
9,881 |
|
15,825 |
|
21,268 |
|
|
0.69 |
% |
1.13 |
% |
1.48 |
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Non-interest bearing demand deposits 13 |
2,213,829 |
|
2,046,102 |
|
1,926,591 |
|
|
|
|
|
|
|
|
|
||||||||||||
Payables and other liabilities |
306,896 |
|
270,371 |
|
238,544 |
|
|
|
|
|
|
|
|
|
||||||||||||
Total average liabilities |
8,274,319 |
|
7,939,438 |
|
7,887,719 |
|
|
|
|
|
|
|
|
|
||||||||||||
Redeemable noncontrolling interests |
— |
|
1,018 |
|
943 |
|
|
|
|
|
|
|
|
|
||||||||||||
Average shareholders’ equity |
834,882 |
|
838,935 |
|
790,844 |
|
|
|
|
|
|
|
|
|
||||||||||||
TOTAL AVERAGE LIABILITIES, RNCI, AND SHAREHOLDERS’ EQUITY |
$ |
9,109,201 |
|
$ |
8,779,391 |
|
$ |
8,679,506 |
|
|
|
|
|
|
|
|
|
|||||||||
Net interest income |
|
|
|
|
$ |
58,938 |
|
$ |
57,257 |
|
$ |
57,460 |
|
|
|
|
|
|||||||||
Interest rate spread |
|
|
|
|
|
|
|
|
2.53 |
% |
2.41 |
% |
2.34 |
% |
||||||||||||
Net interest margin |
|
|
|
|
|
|
|
|
2.75 |
% |
2.76 |
% |
2.78 |
% |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Average total deposits 13 |
$ |
7,250,204 |
|
$ |
7,106,891 |
|
$ |
6,590,167 |
|
|
|
|
|
|
0.41 |
% |
0.72 |
% |
0.88 |
% |
||||||
Average total deposits and borrowings 13 |
$ |
7,967,423 |
|
$ |
7,669,067 |
|
$ |
7,649,175 |
|
|
|
|
|
|
0.50 |
% |
0.83 |
% |
1.11 |
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
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 non-interest bearing demand deposits. Average total deposits and borrowings is the sum of Average total interest-bearing liabilities and Average non-interest bearing demand deposits.
BOSTON PRIVATE FINANCIAL HOLDINGS, INC. |
|
|
|
|
|
|
||||||||||||
Average Balances, Yields, and Rates |
|
|
|
|
|
|
||||||||||||
Unaudited ($ in thousands) |
|
|
|
|
|
|
|
|
||||||||||
|
Average Balance |
|
Interest Income/Expense |
|
Average Yield/Rate |
|||||||||||||
|
Six Months Ended |
|
Six Months Ended |
|
Six Months Ended |
|||||||||||||
INTEREST-EARNING ASSETS |
6/30/20 |
6/30/19 |
|
6/30/20 |
6/30/19 |
|
6/30/20 |
6/30/19 |
||||||||||
Cash and investments: |
|
|
|
|
|
|
|
|
||||||||||
Taxable investment securities |
$ |
199,755 |
|
$ |
235,218 |
|
|
$ |
1,727 |
|
$ |
2,306 |
|
|
1.73 |
% |
1.92 |
% |
Non-taxable investment securities |
316,097 |
|
305,581 |
|
|
4,003 |
|
3,802 |
|
|
2.53 |
% |
2.49 |
% |
||||
Mortgage-backed securities |
513,149 |
|
514,872 |
|
|
5,353 |
|
5,603 |
|
|
2.09 |
% |
2.18 |
% |
||||
Short-term investments and other |
167,188 |
|
105,610 |
|
|
1,653 |
|
1,965 |
|
|
1.96 |
% |
3.61 |
% |
||||
Total cash and investments |
1,196,189 |
|
1,161,281 |
|
|
12,736 |
|
13,676 |
|
|
2.13 |
% |
2.34 |
% |
||||
Loans: 12 |
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial |
1,091,648 |
|
1,081,092 |
|
|
20,432 |
|
22,150 |
|
|
3.69 |
% |
4.08 |
% |
||||
Paycheck Protection Program |
143,297 |
|
— |
|
|
1,573 |
|
— |
|
|
2.23 |
% |
— |
% |
||||
Commercial real estate |
2,620,689 |
|
2,452,824 |
|
|
52,084 |
|
58,104 |
|
|
3.93 |
% |
4.71 |
% |
||||
Construction and land |
233,315 |
|
206,956 |
|
|
4,823 |
|
5,200 |
|
|
4.09 |
% |
5.00 |
% |
||||
Residential |
2,856,771 |
|
2,990,948 |
|
|
46,547 |
|
51,280 |
|
|
3.26 |
% |
3.43 |
% |
||||
Home equity |
87,178 |
|
91,017 |
|
|
1,602 |
|
2,267 |
|
|
3.69 |
% |
5.02 |
% |
||||
Other consumer |
128,292 |
|
129,332 |
|
|
2,104 |
|
2,875 |
|
|
3.29 |
% |
4.48 |
% |
||||
Total loans |
7,161,190 |
|
6,952,169 |
|
|
129,165 |
|
141,876 |
|
|
3.58 |
% |
4.07 |
% |
||||
Total earning assets |
8,357,379 |
|
8,113,450 |
|
|
141,901 |
|
155,552 |
|
|
3.38 |
% |
3.82 |
% |
||||
|
|
|
|
|
|
|
|
|
||||||||||
LESS: Allowance for loan losses |
60,102 |
|
74,692 |
|
|
|
|
|
|
|
||||||||
Cash and due from banks |
44,831 |
|
46,010 |
|
|
|
|
|
|
|
||||||||
Other assets |
602,319 |
|
502,068 |
|
|
|
|
|
|
|
||||||||
TOTAL AVERAGE ASSETS |
$ |
8,944,427 |
|
$ |
8,586,836 |
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||||||||||
INTEREST-BEARING LIABILITIES |
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing deposits: 13 |
|
|
|
|
|
|
|
|
||||||||||
Savings and NOW |
$ |
659,842 |
|
$ |
679,716 |
|
|
$ |
419 |
|
$ |
572 |
|
|
0.13 |
% |
0.17 |
% |
Money market |
3,717,664 |
|
3,283,891 |
|
|
14,505 |
|
20,549 |
|
|
0.78 |
% |
1.26 |
% |
||||
Certificates of deposit |
670,144 |
|
764,094 |
|
|
5,207 |
|
7,452 |
|
|
1.56 |
% |
1.97 |
% |
||||
Total interest-bearing deposits 13 |
5,047,650 |
|
4,727,701 |
|
|
20,131 |
|
28,573 |
|
|
0.80 |
% |
1.22 |
% |
||||
Junior subordinated debentures |
106,363 |
|
106,363 |
|
|
1,681 |
|
2,201 |
|
|
3.17 |
% |
4.17 |
% |
||||
FHLB borrowings and other |
533,334 |
|
785,245 |
|
|
3,894 |
|
8,980 |
|
|
1.44 |
% |
2.27 |
% |
||||
Total interest-bearing liabilities 13 |
5,687,347 |
|
5,619,309 |
|
|
25,706 |
|
39,754 |
|
|
0.90 |
% |
1.42 |
% |
||||
|
|
|
|
|
|
|
|
|
||||||||||
Non-interest bearing demand deposits 13 |
2,129,758 |
|
1,950,088 |
|
|
|
|
|
|
|
||||||||
Payables and other liabilities |
288,846 |
|
236,894 |
|
|
|
|
|
|
|
||||||||
Total average liabilities |
8,105,951 |
|
7,806,291 |
|
|
|
|
|
|
|
||||||||
Redeemable noncontrolling interests |
573 |
|
1,619 |
|
|
|
|
|
|
|
||||||||
Average shareholders’ equity |
837,903 |
|
778,926 |
|
|
|
|
|
|
|
||||||||
TOTAL AVERAGE LIABILITIES, RNCI, AND SHAREHOLDERS’ EQUITY |
$ |
8,944,427 |
|
$ |
8,586,836 |
|
|
|
|
|
|
|
||||||
Net interest income |
|
|
|
$ |
116,195 |
|
$ |
115,798 |
|
|
|
|
||||||
Interest rate spread |
|
|
|
|
|
|
2.48 |
% |
2.40 |
% |
||||||||
Net interest margin |
|
|
|
|
|
|
2.76 |
% |
2.84 |
% |
||||||||
|
|
|
|
|
|
|
|
|
||||||||||
Average total deposits 13 |
$ |
7,177,408 |
|
$ |
6,677,789 |
|
|
|
|
|
0.56 |
% |
0.86 |
% |
||||
Average total deposits and borrowings 13 |
$ |
7,817,105 |
|
$ |
7,569,397 |
|
|
|
|
|
0.66 |
% |
1.06 |
% |
||||
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 non-interest bearing demand deposits. Average total deposits and borrowings is the sum of Average total interest-bearing liabilities and Average non-interest bearing demand deposits.
BOSTON PRIVATE FINANCIAL HOLDINGS, INC. |
|
|
|
|
|
|
|
|
|||||||||||
Regional Loan Data |
|
|
|
|
|
|
|
|
|||||||||||
Unaudited ($ in thousands) |
|
|
|
|
|
|
|
|
|||||||||||
|
2Q20 |
|
1Q20 |
|
4Q19 |
|
3Q19 |
|
2Q19 |
||||||||||
New England |
$ |
3,781,603 |
|
|
$ |
3,724,959 |
|
|
$ |
3,776,747 |
|
|
$ |
3,868,690 |
|
|
$ |
3,957,221 |
|
Northern California |
1,741,255 |
|
|
1,618,668 |
|
|
1,532,786 |
|
|
1,559,569 |
|
|
1,538,441 |
|
|||||
Southern California |
1,810,096 |
|
|
1,699,711 |
|
|
1,667,171 |
|
|
1,638,892 |
|
|
1,584,598 |
|
|||||
Total loans |
$ |
7,332,954 |
|
|
$ |
7,043,338 |
|
|
$ |
6,976,704 |
|
|
$ |
7,067,151 |
|
|
$ |
7,080,260 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans (charged-off)/recovered, net: |
|
|
|
|
|
|
|
|
|
||||||||||
New England |
$ |
7 |
|
|
$ |
15 |
|
|
$ |
414 |
|
|
$ |
275 |
|
|
$ |
31 |
|
Northern California |
3 |
|
|
122 |
|
|
(10) |
|
|
6 |
|
|
20 |
|
|||||
Southern California |
(1,501) |
|
|
(485) |
|
|
(113) |
|
|
(156) |
|
|
(161) |
|
|||||
Total net loans (charged-off)/recovered |
$ |
(1,491) |
|
|
$ |
(348) |
|
|
$ |
291 |
|
|
$ |
125 |
|
|
$ |
(110) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Special mention loans: |
|
|
|
|
|
|
|
|
|
||||||||||
New England |
$ |
83,026 |
|
|
$ |
61,741 |
|
|
$ |
21,691 |
|
|
$ |
19,828 |
|
|
$ |
35,235 |
|
Northern California |
75,609 |
|
|
5,947 |
|
|
5,227 |
|
|
4,821 |
|
|
10,360 |
|
|||||
Southern California |
33,247 |
|
|
24,935 |
|
|
25,108 |
|
|
33,484 |
|
|
25,082 |
|
|||||
Total special mention loans |
$ |
191,882 |
|
|
$ |
92,623 |
|
|
$ |
52,026 |
|
|
$ |
58,133 |
|
|
$ |
70,677 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Accruing classified loans: |
|
|
|
|
|
|
|
|
|
||||||||||
New England |
$ |
53,124 |
|
|
$ |
50,483 |
|
|
$ |
20,428 |
|
|
$ |
21,830 |
|
|
$ |
13,012 |
|
Northern California |
21,712 |
|
|
24,843 |
|
|
24,946 |
|
|
23,938 |
|
|
25,957 |
|
|||||
Southern California |
13,750 |
|
|
12,622 |
|
|
12,548 |
|
|
17,510 |
|
|
14,914 |
|
|||||
Total accruing classified loans |
$ |
88,586 |
|
|
$ |
87,948 |
|
|
$ |
57,922 |
|
|
$ |
63,278 |
|
|
$ |
53,883 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonaccruing loans: |
|
|
|
|
|
|
|
|
|
||||||||||
New England |
$ |
11,630 |
|
|
$ |
11,965 |
|
|
$ |
9,764 |
|
|
$ |
8,999 |
|
|
$ |
8,837 |
|
Northern California |
9,459 |
|
|
6,575 |
|
|
319 |
|
|
2,395 |
|
|
2,644 |
|
|||||
Southern California |
4,515 |
|
|
5,774 |
|
|
6,020 |
|
|
6,171 |
|
|
5,674 |
|
|||||
Total nonaccruing loans |
$ |
25,604 |
|
|
$ |
24,314 |
|
|
$ |
16,103 |
|
|
$ |
17,565 |
|
|
$ |
17,155 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
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) |
|
|
|
|
|
|
|
|
|||||||||||
|
2Q20 |
|
1Q20 |
|
4Q19 |
|
3Q19 |
|
2Q19 |
||||||||||
ROACE AND ROATCE: |
|
|
|
|
|
|
|
|
|
||||||||||
Net income/(loss) attributable to the Company (GAAP) (A) |
$ |
(3,298) |
|
|
$ |
800 |
|
|
$ |
21,244 |
|
|
$ |
19,962 |
|
|
$ |
19,380 |
|
ADD: Amortization of intangibles, net of tax |
555 |
|
|
565 |
|
|
534 |
|
|
530 |
|
|
531 |
|
|||||
Tangible common net income/(loss) (non-GAAP) (B) |
$ |
(2,743) |
|
|
$ |
1,365 |
|
|
$ |
21,778 |
|
|
$ |
20,492 |
|
|
$ |
19,911 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total average shareholders’ equity (C) |
$ |
834,882 |
|
|
$ |
838,935 |
|
|
$ |
818,816 |
|
|
$ |
807,890 |
|
|
$ |
790,844 |
|
LESS: Average goodwill and intangibles, net |
(66,877) |
|
|
(67,586) |
|
|
(68,031) |
|
|
(68,359) |
|
|
(68,889) |
|
|||||
Average tangible common equity (non-GAAP) (D) |
$ |
768,005 |
|
|
$ |
771,349 |
|
|
$ |
750,785 |
|
|
$ |
739,531 |
|
|
$ |
721,955 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
ROACE (annualized) (A/C) |
(1.58) |
% |
|
0.39 |
% |
|
10.29 |
% |
|
9.80 |
% |
|
9.83 |
% |
|||||
ROATCE (annualized) (B/D) |
(1.43) |
% |
|
0.72 |
% |
|
11.51 |
% |
|
10.99 |
% |
|
11.06 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
PRE-TAX, PRE-PROVISION INCOME: |
|
|
|
|
|
|
|
|
|
||||||||||
Income/(loss) before income taxes (GAAP) |
$ |
(2,457) |
|
|
$ |
908 |
|
|
$ |
28,129 |
|
|
$ |
25,575 |
|
|
$ |
24,818 |
|
ADD BACK: Provision/(credit) for loan losses |
22,604 |
|
|
16,962 |
|
|
(3,668) |
|
|
167 |
|
|
1,363 |
|
|||||
Pre-tax, pre-provision income (non-GAAP) |
$ |
20,147 |
|
|
$ |
17,870 |
|
|
$ |
24,461 |
|
|
$ |
25,742 |
|
|
$ |
26,181 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
TANGIBLE COMMON EQUITY: |
|
|
|
|
|
|
|
|
|
||||||||||
Total shareholders’ equity (GAAP) |
$ |
825,205 |
|
|
$ |
828,792 |
|
|
$ |
819,018 |
|
|
$ |
808,688 |
|
|
$ |
798,211 |
|
LESS: Goodwill and intangibles, net |
(66,542) |
|
|
(67,244) |
|
|
(67,959) |
|
|
(68,229) |
|
|
(68,491) |
|
|||||
Tangible common equity (non-GAAP) (A) |
$ |
758,663 |
|
|
$ |
761,548 |
|
|
$ |
751,059 |
|
|
$ |
740,459 |
|
|
$ |
729,720 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets (GAAP) |
$ |
9,158,906 |
|
|
$ |
8,746,326 |
|
|
$ |
8,830,501 |
|
|
$ |
8,690,944 |
|
|
$ |
8,712,873 |
|
LESS: Goodwill and intangibles, net |
(66,542) |
|
|
(67,244) |
|
|
(67,959) |
|
|
(68,229) |
|
|
(68,491) |
|
|||||
Tangible assets (non-GAAP) (B) |
$ |
9,092,364 |
|
|
$ |
8,679,082 |
|
|
$ |
8,762,542 |
|
|
$ |
8,622,715 |
|
|
$ |
8,644,382 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
End of period shares outstanding (C) |
82,058,483 |
|
81,800,486 |
|
83,265,674 |
|
83,241,952 |
|
83,774,335 |
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Tangible common equity/ Tangible assets (non-GAAP) (A/B) |
8.34 |
% |
|
8.77 |
% |
|
8.57 |
% |
|
8.59 |
% |
|
8.44 |
% |
|||||
Tangible book value per share (non-GAAP) (A/C) |
$9.25 |
|
$9.31 |
|
$9.02 |
|
$8.90 |
|
$8.71 |
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
BOSTON PRIVATE FINANCIAL HOLDINGS, INC. |
|
|
|
|
|
|
|
|
|||||||||||
Reconciliations of Non-GAAP Financial Measures |
|
|
|
|
|
|
|
|
|
||||||||||
Unaudited ($ in thousands, except share and per share data) |
|
|
|
|
|
|
|
|
|||||||||||
|
2Q20 |
|
1Q20 |
|
4Q19 |
|
3Q19 |
|
2Q19 |
||||||||||
RETURN ON AVERAGE ASSETS: |
|
|
|
|
|
|
|
|
|
||||||||||
Net income/(loss) (GAAP) (A) |
$ |
(3,298) |
|
|
$ |
800 |
|
|
$ |
21,244 |
|
|
$ |
19,962 |
|
|
$ |
19,380 |
|
Average assets (non-GAAP) (B) |
9,109,201 |
|
|
8,779,391 |
|
|
8,738,750 |
|
|
8,665,352 |
|
|
8,679,506 |
|
|||||
Return on average assets (annualized) (non-GAAP) (A/B) |
(0.15) |
% |
|
0.04 |
% |
|
0.96 |
% |
|
0.91 |
% |
|
0.90 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
EFFICIENCY RATIO: |
|
|
|
|
|
|
|
|
|
||||||||||
Total noninterest expense (GAAP) (A) |
$ |
61,453 |
|
|
$ |
60,908 |
|
|
$ |
58,457 |
|
|
$ |
55,537 |
|
|
$ |
55,659 |
|
LESS: Amortization of intangibles |
702 |
|
|
715 |
|
|
676 |
|
|
671 |
|
|
672 |
|
|||||
Total noninterest expense (non-GAAP) (B) |
$ |
60,751 |
|
|
$ |
60,193 |
|
|
$ |
57,781 |
|
|
$ |
54,866 |
|
|
$ |
54,987 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income (GAAP) |
$ |
58,938 |
|
|
$ |
57,257 |
|
|
$ |
56,125 |
|
|
$ |
56,153 |
|
|
$ |
57,460 |
|
Total core fees and income (GAAP) |
21,630 |
|
|
22,886 |
|
|
24,755 |
|
|
25,155 |
|
|
24,292 |
|
|||||
Total other income/(loss) (GAAP) |
1,032 |
|
|
(1,365) |
|
|
2,038 |
|
|
(29) |
|
|
88 |
|
|||||
Total revenue (GAAP) (C) |
$ |
81,600 |
|
|
$ |
78,778 |
|
|
$ |
82,918 |
|
|
$ |
81,279 |
|
|
$ |
81,840 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Efficiency ratio (GAAP) (A/C) |
75.3 |
% |
|
77.3 |
% |
|
70.5 |
% |
|
68.3 |
% |
|
68.0 |
% |
|||||
Efficiency ratio, excluding amortization of intangibles (non-GAAP) (B/C) |
74.4 |
% |
|
76.4 |
% |
|
69.7 |
% |
|
67.5 |
% |
|
67.2 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
NET INCOME/(LOSS) ATTRIBUTABLE TO THE COMPANY: |
|
|
|
|
|
|
|
|
|
||||||||||
Net income/(loss) attributable to the Company (GAAP) |
$ |
(3,298) |
|
|
$ |
800 |
|
|
$ |
21,244 |
|
|
$ |
19,962 |
|
|
$ |
19,380 |
|
LESS: Gain on fair value of contingent considerations receivable 15 |
— |
|
|
— |
|
|
1,109 |
|
|
— |
|
|
— |
|
|||||
Tax effect at statutory rate |
— |
|
|
— |
|
|
322 |
|
|
— |
|
|
— |
|
|||||
Net income/(loss) attributable to the Company (non-GAAP) |
$ |
(3,298) |
|
|
$ |
800 |
|
|
$ |
20,457 |
|
|
$ |
19,962 |
|
|
$ |
19,380 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NET INCOME/(LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS: |
|
|
|
|
|
|
|
|
|
||||||||||
Net income/(loss) attributable to common shareholders (GAAP) |
$ |
(3,298) |
|
|
$ |
1,214 |
|
|
$ |
21,342 |
|
|
$ |
20,266 |
|
|
$ |
18,564 |
|
LESS: Gain on fair value of contingent considerations receivable 15 |
— |
|
|
— |
|
|
1,109 |
|
|
— |
|
|
— |
|
|||||
Tax effect at statutory rate |
— |
|
|
— |
|
|
322 |
|
|
— |
|
|
— |
|
|||||
Net income/(loss) attributable to the common shareholders, treasury stock method, excluding notable items (non-GAAP) |
$ |
(3,298) |
|
|
$ |
1,214 |
|
|
$ |
20,555 |
|
|
$ |
20,266 |
|
|
$ |
18,564 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted average diluted shares outstanding |
81,929,752 |
|
|
83,318,041 |
|
|
83,637,786 |
|
|
83,956,708 |
|
|
84,048,972 |
|
|||||
Diluted earnings/(loss) per share (GAAP) |
$ |
(0.04) |
|
|
$ |
0.01 |
|
|
$ |
0.26 |
|
|
$ |
0.24 |
|
|
$ |
0.22 |
|
Diluted earnings/(loss) per share, excluding notable items (non-GAAP) |
$ |
(0.04) |
|
|
$ |
0.01 |
|
|
$ |
0.25 |
|
|
$ |
0.24 |
|
|
$ |
0.22 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Average common equity (non-GAAP) |
$ |
834,882 |
|
|
$ |
838,935 |
|
|
$ |
818,816 |
|
|
$ |
807,890 |
|
|
$ |
790,844 |
|
Average tangible common equity (non-GAAP) |
$ |
768,005 |
|
|
$ |
771,349 |
|
|
$ |
750,785 |
|
|
$ |
739,531 |
|
|
$ |
721,955 |
|
ROACE, excluding notable items (non-GAAP) |
(1.58) |
% |
|
0.39 |
% |
|
9.91 |
% |
|
9.80 |
% |
|
9.83 |
% |
|||||
ROATCE, excluding notable items (non-GAAP) |
(1.43) |
% |
|
0.72 |
% |
|
11.09 |
% |
|
10.99 |
% |
|
11.06 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Pre-tax, pre-provision income (non-GAAP) |
$ |
20,147 |
|
|
$ |
17,870 |
|
|
$ |
24,461 |
|
|
$ |
25,742 |
|
|
$ |
26,181 |
|
LESS: Gain on fair value of contingent considerations receivable 15 |
— |
|
|
— |
|
|
1,109 |
|
|
— |
|
|
— |
|
|||||
Pre-tax, pre-provision income, excluding notable items (non-GAAP) |
$ |
20,147 |
|
|
$ |
17,870 |
|
|
$ |
23,352 |
|
|
$ |
25,742 |
|
|
$ |
26,181 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
15 In the fourth quarter of 2019, there was a $1.1 million gain related to the revaluation of a receivable from the divestiture of former affiliate, Bingham, Osborn & Scarborough, LLC ("BOS").
