BOSTON--(BUSINESS WIRE)--Boston Private Financial Holdings, Inc. (NASDAQ: BPFH) (the “Company” or “BPFH”) today reported second quarter 2014 GAAP Net Income Attributable to the Company of $21.3 million, compared to $17.0 million for the first quarter of 2014. GAAP Net Income Attributable to the Company was flat on a year-over-year basis relative to the second quarter of 2013. Second quarter diluted earnings per share were $0.25, a $0.05 increase over the first quarter of 2014. Diluted earnings per share increased by $0.14 on a year-over-year basis from $0.11 for the second quarter of 2013. Excluding the impact of significant transactions in the second quarter of 2013, diluted earnings per share was $0.18.
“The second quarter demonstrated continued strength in our Wealth Management businesses and our Private Bank,” said Clayton G. Deutsch, CEO and President. “For the Private Bank, average loan and deposit growth year-over-year was 4% and 8%, respectively. Our Wealth Advisors had another strong quarter, with fees increasing 4% linked quarter and 16% year-over-year. Especially gratifying, given our long-standing focus on target ROE attainment, is seeing second quarter ROE come in at 13.5% and first half of 2014 ROE coming in at 12.2%.”
Core Fees and Income Increased 13% Year-Over-Year
On a year-over-year basis, Core Fees and Income (Investment Management Fees, Wealth Advisory Fees, Private Banking Wealth Management and Trust Fees, Other Banking Fee Income and Gain on Sale of Loans) increased 13% to $34.1 million due to double-digit growth in Wealth Advisory Fees. On a linked quarter basis, Core Fees and Income increased 8% from $31.7 million for the first quarter of 2014, due largely to higher AUM across our Wealth Management business as well as higher gain on sale of loans.
Total Assets Under Management/Advisory (“AUM”) increased to $25.4 billion at the end of the second quarter, up 3% from $24.7 billion at the end of the first quarter of 2014. AUM increased 17% from $21.8 billion at the end of the second quarter of 2013.
Net Interest Income Increased 4% Linked Quarter
Net Interest Income for the second quarter was $46.3 million, up 4% from $44.5 million for the first quarter of 2014. On a year-over-year basis, Net Interest Income increased 5% from $43.9 million. Included in the second quarter of 2014 Net Interest Income was $1.9 million of interest recovered on previous nonaccrual loans. Excluding the interest recovered, Net Interest Income was flat compared to the first quarter of 2014 and up 1% from the second quarter of 2013.
Net Interest Margin was 3.14% at the end of the second quarter, up ten basis points from 3.04% at the end of the first quarter. Net Interest Margin was unchanged from June 30, 2013. Excluding the impact from interest recovered, June 30, 2014 Net Interest Margin was 3.01%, down three basis points from March 31, 2014.
Total Operating Expenses Decreased 1% Linked Quarter, 4% Year-Over-Year
Total Operating Expenses for the second quarter of 2014 were $54.4 million, down 1% from $55.0 million for the first quarter of 2014. First quarter expenses were elevated by seasonal compensation expenses such as increased 401(k) employee contribution matches and FICA. On a year-over-year basis, Total Operating Expenses decreased 4% from $56.7 million. The second quarter of 2013 included $2.4 million of one-time charges related to liability restructuring and tax reserves.
Provision Credit of $5.0M Driven By Net Recoveries
The Company recorded a $5.0 million credit for its Provision for Loan Losses for the second quarter of 2014, compared to a provision credit of $1.2 million for the first quarter. The provision credit was driven by net recoveries of $2.9 million and $1.2 million from the commercial loan sale. The Company recorded a provision credit of $2.0 million for the second quarter of 2013.
Criticized Loans were flat on a linked quarter basis, and decreased 2% year-over-year. Nonaccrual Loans (“Nonaccruals”) decreased 1% to $41.6 million, down from $42.1 million on a linked quarter basis. On a year-over-year basis, Nonaccruals decreased 20% from $52.3 million. As a percentage of Total Loans, Nonaccruals were 82 basis points at June 30, 2014, up 1 basis point from 81 basis points at March 31, 2014, and down 26 basis points from 1.08% at June 30, 2013.
Additional credit metrics are listed below on a linked quarter and year-over-year basis:
| (In millions) |
June 30, 2014 |
March 31, 2014 |
June 30, 2013 |
|||||||||
| Total Criticized Loans | $ | 188.2 | $ | 187.3 | $ | 191.4 | ||||||
|
Total Loans 30-89 Days Past Due and Accruing (13) |
$ | 6.0 | $ | 10.6 | $ | 11.5 | ||||||
| Total Net Loans (Charged-off)/ Recovered | $ | 2.9 | $ | 1.4 | $ | 0.5 | ||||||
| Allowance for Loan Losses/ Total Loans | 1.46 | % | 1.48 | % | 1.67 | % | ||||||
Capital Ratios Increase
The Company built upon its capital position in the second quarter of 2014. David J. Kaye, Chief Financial Officer, stated, “Strong earnings and proactive balance sheet management pushed the Tier 1 Common Equity Ratio up to 10.6%, providing the Company with additional flexibility going forward.”
Capital ratios are listed below on a linked quarter and year-over-year basis:
|
June 30, 2014 |
March 31, 2014 |
June 30, 2013 |
|||||||
| Total Risk-Based Capital * | 15.5 | % | 15.0 | % | 15.6 | % | |||
| Tier I Risk-Based Capital * | 14.3 | % | 13.7 | % | 14.3 | % | |||
| Tier I Leverage Capital * | 10.4 | % | 10.2 | % | 10.4 | % | |||
| TCE/TA | 7.8 | % | 7.1 | % | 7.3 | % | |||
| Tier I Common Equity/ Risk Weighted Assets * | 10.6 | % | 10.1 | % | 9.9 | % | |||
|
*June 30, 2014 data is presented based on estimated data. |
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Dividend Payments
Concurrent with the release of second quarter 2014 earnings, the Board of Directors of the Company declared a cash dividend to common shareholders of $0.08 per share. The record date for this dividend is August 8, 2014, and the payment date is August 22, 2014.
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 August 15, 2014, and the payment date is September 15, 2014.
Non-GAAP Financial Measures
The Company uses certain non-GAAP financial measures, such as tangible book value per share; the TCE/TA ratio; return on average common equity; return on average tangible common equity; pre-tax, pre-provision earnings; and the efficiency ratio (FTE basis), to provide information for investors to effectively analyze financial trends of ongoing business activities, and to enhance comparability with peers across the financial sector. A detailed reconciliation table of the Company's GAAP to the non-GAAP measures is attached.
Conference Call
Management will hold a conference call at 8 a.m. Eastern Time on Wednesday, July 16, to discuss the financial results, business highlights and outlook. To access the call:
Dial In #: (888) 317-6003
Elite Entry Number: 2512612
Replay Information:
Available from July 16 at 12 noon until July 23
Dial
In #: (877) 344-7529
Conference Number: 10048703
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 and Private Banking affiliates in Boston, New York, Los Angeles and the San Francisco Bay Area. The Company has a $6 billion Private Banking balance sheet, and manages over $25 billion of client assets.
The Company positions its affiliates to 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 and wealth advisory activities; changes in interest rates; competitive pressures from other financial institutions; the effects of continued 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; increasing 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 statements are 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.
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Boston Private Financial Holdings, Inc. |
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| Selected Financial Data | ||||||||||||
| (Unaudited) | ||||||||||||
| (In thousands, except share and per share data) | 6/30/14 | 3/31/14 | 6/30/13 | |||||||||
| Assets: | ||||||||||||
| Cash and cash equivalents | $ | 139,181 | $ | 398,687 | $ | 67,654 | ||||||
| Investment securities available for sale | 683,590 | 700,531 | 724,153 | |||||||||
| Investment securities held to maturity | 138,380 | 127,938 | — | |||||||||
| Stock in Federal Home Loan Banks | 35,276 | 37,450 | 40,622 | |||||||||
|
Loans held for sale |
2,841 | 2,297 | 12,414 | |||||||||
| Total loans | 5,106,051 | 5,162,470 | 4,838,713 | |||||||||
| Less: Allowance for loan losses | 74,547 | 76,605 | 80,800 | |||||||||
| Net loans | 5,031,504 | 5,085,865 | 4,757,913 | |||||||||
| Other real estate owned (“OREO”) | 921 | 921 | 776 | |||||||||
| Premises and equipment, net | 28,410 | 29,045 | 29,093 | |||||||||
| Goodwill | 110,180 | 110,180 | 110,180 | |||||||||
| Intangible assets, net | 18,506 | 19,551 | 22,712 | |||||||||
| Fees receivable | 11,957 | 11,039 | 9,950 | |||||||||
| Accrued interest receivable | 14,337 | 15,057 | 14,831 | |||||||||
| Deferred income taxes, net | 50,516 | 53,716 | 60,019 | |||||||||
| Other assets | 123,224 | 113,143 | 116,613 | |||||||||
| Total assets | $ | 6,388,823 | $ | 6,705,420 | $ | 5,966,930 | ||||||
| Liabilities: | ||||||||||||
|
Deposits |
$ | 4,951,852 | $ | 5,341,644 | $ | 4,576,383 | ||||||
| Securities sold under agreements to repurchase | 137,334 | 93,550 | 26,700 | |||||||||
| Federal funds purchased | — | 15,000 | 65,000 | |||||||||
| Federal Home Loan Bank borrowings | 416,579 | 394,458 | 448,706 | |||||||||
| Junior subordinated debentures | 106,363 | 106,363 | 133,168 | |||||||||
| Other liabilities | 93,149 | 87,652 | 90,035 | |||||||||
| Total liabilities | 5,705,277 | 6,038,667 | 5,339,992 | |||||||||
| Redeemable Noncontrolling Interests | 20,895 | 20,774 | 17,661 | |||||||||
| Shareholders’ Equity: | ||||||||||||
| Preferred stock, $1.00 par value; authorized: 2,000,000 shares | 47,753 | 47,753 | 47,754 | |||||||||
| Common stock, $1.00 par value; authorized: 170,000,000 shares; issued and outstanding: 80,394,009 shares at June 30, 2014; 80,001,139 shares at March 31, 2014; 79,734,389 shares at June 30, 2013 | 80,394 | 80,001 | 79,734 | |||||||||
| Additional paid-in capital | 603,652 | 610,590 | 626,950 | |||||||||
| Accumulated deficit | (67,838 | ) | (89,170 | ) | (142,215 | ) | ||||||
| Accumulated other comprehensive income/ (loss) | (1,542 | ) | (3,305 | ) | (3,081 | ) | ||||||
| Total Company’s shareholders’ equity | 662,419 | 645,869 | 609,142 | |||||||||
| Noncontrolling interests | 232 | 110 | 135 | |||||||||
| Total shareholders’ equity | 662,651 | 645,979 | 609,277 | |||||||||
| Total liabilities, redeemable noncontrolling interests and shareholders’ equity | $ | 6,388,823 | $ | 6,705,420 | $ | 5,966,930 | ||||||
| Boston Private Financial Holdings, Inc. | ||||||||||||||||||||
| Selected Financial Data | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| (In thousands, except share and per share data) | 6/30/14 | 3/31/14 | 6/30/13 | 6/30/14 | 6/30/13 | |||||||||||||||
| Interest and dividend income: | ||||||||||||||||||||
| Loans | $ | 49,396 | $ | 47,214 | $ | 48,339 | $ | 96,610 | $ | 97,689 | ||||||||||
| Taxable investment securities | 730 | 636 | 489 | 1,366 | 1,000 | |||||||||||||||
| Non-taxable investment securities | 914 | 904 | 778 | 1,818 | 1,617 | |||||||||||||||
| Mortgage-backed securities | 1,689 | 1,936 | 1,340 | 3,625 | 2,742 | |||||||||||||||
| Federal funds sold and other | 253 | 346 | 179 | 599 | 358 | |||||||||||||||
| Total interest and dividend income | 52,982 | 51,036 | 51,125 | 104,018 | 103,406 | |||||||||||||||
| Interest expense: | ||||||||||||||||||||
| Deposits | 3,375 | 3,216 | 3,120 | 6,591 | 6,906 | |||||||||||||||
| Federal Home Loan Bank borrowings | 2,359 | 2,326 | 2,818 | 4,685 | 5,649 | |||||||||||||||
| Junior subordinated debentures | 965 | 955 | 1,156 | 1,920 | 2,310 | |||||||||||||||
| Repurchase agreements and other short-term borrowings | 15 | 17 | 132 | 32 | 366 | |||||||||||||||
| Total interest expense | 6,714 | 6,514 | 7,226 | 13,228 | 15,231 | |||||||||||||||
| Net interest income | 46,268 | 44,522 | 43,899 | 90,790 | 88,175 | |||||||||||||||
| Provision/ (credit) for loan losses | (5,000 | ) | (1,200 | ) | (2,000 | ) | (6,200 | ) | (2,000 | ) | ||||||||||
| Net interest income after provision for loan losses | 51,268 | 45,722 | 45,899 | 96,990 | 90,175 | |||||||||||||||
| Fees and other income: | ||||||||||||||||||||
| Investment management fees | 11,754 | 11,461 | 10,848 | 23,215 | 20,934 | |||||||||||||||
| Wealth advisory fees | 11,979 | 11,473 | 10,317 | 23,452 | 20,385 | |||||||||||||||
| Private banking wealth management and trust fees | 7,043 | 6,961 | 6,490 | 14,004 | 13,272 | |||||||||||||||
| Other banking fee income | 1,677 | 1,680 | 1,706 | 3,357 | 3,504 | |||||||||||||||
| Gain on sale of loans, net | 1,694 | 89 | 746 | 1,783 | 1,933 | |||||||||||||||
| Total core fees and income | 34,147 | 31,664 | 30,107 | 65,811 | 60,028 | |||||||||||||||
| Gain on repurchase of debt | — | — | 46 | — | 620 | |||||||||||||||
| Gain on sale of investments, net | — | 1 | 18 | 1 | 28 | |||||||||||||||
| Gain/(loss) on OREO, net | 19 | 819 | (47 | ) | 838 | (13 | ) | |||||||||||||
| Gain on sale of Pacific Northwest offices (1) | — | — | 10,574 | — | 10,574 | |||||||||||||||
| Other | 208 | 249 | 286 | 457 | 508 | |||||||||||||||
| Total other income | 227 | 1,069 | 10,877 | 1,296 | 11,717 | |||||||||||||||
| Operating expense: | ||||||||||||||||||||
| Salaries and employee benefits | 34,338 | 36,574 | 34,054 | 70,912 | 71,503 | |||||||||||||||
| Occupancy and equipment | 7,349 | 7,797 | 7,597 | 15,146 | 15,104 | |||||||||||||||
| Professional services | 3,526 | 2,843 | 2,585 | 6,369 | 5,246 | |||||||||||||||
| Marketing and business development | 2,730 | 1,426 | 2,726 | 4,156 | 4,162 | |||||||||||||||
| Contract services and data processing | 1,447 | 1,438 | 1,484 | 2,885 | 3,052 | |||||||||||||||
| Amortization of intangibles | 1,045 | 1,053 | 1,101 | 2,098 | 2,219 | |||||||||||||||
| FDIC insurance | 854 | 896 | 954 | 1,750 | 1,994 | |||||||||||||||
| Other | 3,113 | 2,941 | 6,165 | 6,054 | 9,972 | |||||||||||||||
| Total operating expense | 54,402 | 54,968 | 56,666 | 109,370 | 113,252 | |||||||||||||||
| Income before income taxes | 31,240 | 23,487 | 30,217 | 54,727 | 48,668 | |||||||||||||||
| Income tax expense | 10,333 | 7,138 | 10,701 | 17,471 | 16,741 | |||||||||||||||
| Net income from continuing operations | 20,907 | 16,349 | 19,516 | 37,256 | 31,927 | |||||||||||||||
| Net income from discontinued operations (2) | 1,450 | 1,928 | 2,781 | 3,378 | 4,503 | |||||||||||||||
| Net income before attribution to noncontrolling interests | 22,357 | 18,277 | 22,297 | 40,634 | 36,430 | |||||||||||||||
| Less: Net income attributable to noncontrolling interests | 1,025 | 1,236 | 969 | 2,261 | 1,899 | |||||||||||||||
| Net income attributable to the Company | $ | 21,332 | $ | 17,041 | $ | 21,328 | $ | 38,373 | $ | 34,531 | ||||||||||
| Boston Private Financial Holdings, Inc. | ||||||||||||||||||||
| Selected Financial Data | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| (In thousands, except share and per share data) | Three Months Ended | Six Months Ended | ||||||||||||||||||
| PER SHARE DATA: | 6/30/14 | 3/31/14 | 6/30/13 | 6/30/14 | 6/30/13 | |||||||||||||||
| Calculation of Income for EPS: | ||||||||||||||||||||
| Net income attributable to the Company | $ | 21,332 | $ | 17,041 | $ | 21,328 | $ | 38,373 | $ | 34,531 | ||||||||||
| Adjustments to Net Income Attributable to the Company to Arrive at Net Income Attributable to Common Shareholders (3) | (1,195 | ) | (1,061 | ) | (12,468 | ) | (2,256 | ) | (12,925 | ) | ||||||||||
| Net Income Attributable to the Common Shareholders | 20,137 | 15,980 | 8,860 | 36,117 | 21,606 | |||||||||||||||
| LESS: Amount allocated to participating securities | (132 | ) | (117 | ) | (199 | ) | (255 | ) | (998 | ) | ||||||||||
| Net Income Attributable to the Common Shareholders, after allocation to participating securities | $ | 20,005 | $ | 15,863 | $ | 8,661 | $ | 35,862 | $ | 20,608 | ||||||||||
| End of Period Common Shares Outstanding | 80,394,009 | 80,001,139 | 79,734,389 | |||||||||||||||||
| Weighted Average Shares Outstanding: | ||||||||||||||||||||
| Weighted average basic shares, including participating securities | 79,195,082 | 79,107,968 | 80,472,013 | 79,151,765 | 83,039,376 | |||||||||||||||
| LESS: Participating securities | (756,446 | ) | (962,783 | ) | (3,221,015 | ) | (859,044 | ) | (6,003,378 | ) | ||||||||||
| PLUS: Dilutive potential common shares | 1,859,789 | 1,865,705 | 1,127,880 | 1,866,121 | 1,069,292 | |||||||||||||||
| Weighted Average Diluted Shares (4) | 80,298,425 | 80,010,890 | 78,378,878 | 80,158,842 | 78,105,290 | |||||||||||||||
| Diluted Total Earnings per Share | $ | 0.25 | $ | 0.20 | $ | 0.11 | $ | 0.45 | $ | 0.26 | ||||||||||
| Boston Private Financial Holdings, Inc. | ||||||||||||
| Selected Financial Data | ||||||||||||
| (Unaudited) | ||||||||||||
| (In thousands, except per share data) | ||||||||||||
| FINANCIAL DATA: | 6/30/14 | 3/31/14 | 6/30/13 | |||||||||
| Book Value Per Common Share | $ | 7.65 | $ | 7.48 | $ | 7.04 | ||||||
| Tangible Book Value Per Share (5) | $ | 6.05 | $ | 5.86 | $ | 5.38 | ||||||
| Market Price Per Share | $ | 13.44 | $ | 13.53 | $ | 10.64 | ||||||
| ASSETS UNDER MANAGEMENT AND ADVISORY: | ||||||||||||
| Private Banking | $ | 4,716,000 | $ | 4,612,000 | $ | 4,126,000 | ||||||
| Investment Managers | 10,917,000 | 10,505,000 | 9,149,000 | |||||||||
| Wealth Advisory | 9,760,000 | 9,641,000 | 8,516,000 | |||||||||
| Less: Inter-company Relationship | (23,000 | ) | (22,000 | ) | (20,000 | ) | ||||||
| Total Assets Under Management and Advisory | $ | 25,370,000 | $ | 24,736,000 | $ | 21,771,000 | ||||||
| FINANCIAL RATIOS: | ||||||||||||
| Total Equity/Total Assets | 10.37 | % | 9.63 | % | 10.21 | % | ||||||
| Tangible Common Equity/Tangible Assets (5) | 7.77 | % | 7.12 | % | 7.35 | % | ||||||
| Tier I Common Equity/ Risk Weighted Assets (5) | 10.63 | % | 10.11 | % | 9.95 | % | ||||||
| Allowance for Loan Losses/Total Loans | 1.46 | % | 1.48 | % | 1.67 | % | ||||||
| Allowance for Loan Losses/Nonaccrual Loans | 179 | % | 182 | % | 155 | % | ||||||
| Return on Average Assets - Three Months Ended (Annualized) | 1.32 | % | 1.06 | % | 1.39 | % | ||||||
| Return on Average Common Equity - Three Months Ended (Annualized) (6) | 13.50 | % | 10.91 | % | 14.59 | % | ||||||
| Return on Average Tangible Common Equity - Three Months Ended (Annualized) (6) | 17.15 | % | 13.99 | % | 19.05 | % | ||||||
| Efficiency Ratio - Three Months Ended (7) | 64.39 | % | 67.88 | % | 63.94 | % | ||||||
| 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: | 6/30/14 | 3/31/14 | 6/30/13 | 6/30/14 | 3/31/14 | 6/30/13 | 6/30/14 | 3/31/14 | 6/30/13 | ||||||||||||||||||
| AVERAGE ASSETS | |||||||||||||||||||||||||||
| Interest-Earning Assets: | |||||||||||||||||||||||||||
| Cash and Investments: | |||||||||||||||||||||||||||
| Taxable investment securities | $ | 262,253 | $ | 254,407 | $ | 208,717 | $ | 730 | $ | 636 | $ | 489 | 1.12 | % | 1.00 | % | 0.94 | % | |||||||||
| Non-taxable investment securities (8) | 224,634 | 224,054 | 204,219 | 1,406 | 1,391 | 1,197 | 2.50 | % | 2.48 | % | 2.34 | % | |||||||||||||||
| Mortgage-backed securities | 332,928 | 341,082 | 294,976 | 1,689 | 1,936 | 1,340 | 2.03 | % | 2.27 | % | 1.82 | % | |||||||||||||||
| Federal funds sold and other | 187,722 | 204,157 | 152,037 | 253 | 346 | 179 | 0.62 | % | 0.68 | % | 0.46 | % | |||||||||||||||
| Total Cash and Investments | 1,007,537 | 1,023,700 | 859,949 | 4,078 | 4,309 | 3,205 | 1.64 | % | 1.68 | % | 1.49 | % | |||||||||||||||
| Loans: (9) | |||||||||||||||||||||||||||
| Commercial and Construction (8) | 2,856,603 | 2,833,475 | 2,702,401 | 33,397 | 30,921 | 31,854 | 4.62 | % | 4.37 | % | 4.66 | % | |||||||||||||||
| Residential | 2,039,146 | 2,035,232 | 1,963,701 | 15,984 | 16,169 | 16,097 | 3.14 | % | 3.18 | % | 3.28 | % | |||||||||||||||
| Home Equity and Other Consumer | 242,988 | 245,596 | 271,063 | 1,744 | 1,805 | 1,984 | 2.88 | % | 2.98 | % | 2.94 | % | |||||||||||||||
| Total Loans | 5,138,737 | 5,114,303 | 4,937,165 | 51,125 | 48,895 | 49,935 | 3.95 | % | 3.83 | % | 4.02 | % | |||||||||||||||
| Total Earning Assets | 6,146,274 | 6,138,003 | 5,797,114 | 55,203 | 53,204 | 53,140 | 3.57 | % | 3.47 | % | 3.64 | % | |||||||||||||||
| LESS: Allowance for Loan Losses | 79,071 | 77,228 | 83,711 | ||||||||||||||||||||||||
| Cash and due From Banks (Non-Interest Bearing) | 32,016 | 41,559 | 43,143 | ||||||||||||||||||||||||
| Other Assets | 366,833 | 347,721 | 380,462 | ||||||||||||||||||||||||
| TOTAL AVERAGE ASSETS | $ | 6,466,052 | $ | 6,450,055 | $ | 6,137,008 | |||||||||||||||||||||
| AVERAGE LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS, AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||||||||
| Interest-Bearing Liabilities: | |||||||||||||||||||||||||||
| Interest-Bearing Deposits: (10) | |||||||||||||||||||||||||||
| Savings and NOW | $ | 601,104 | $ | 545,973 | $ | 523,229 | $ | 111 | $ | 98 | $ | 107 | 0.07 | % | 0.07 | % | 0.08 | % | |||||||||
| Money Market | 2,509,400 | 2,490,836 | 2,272,302 | 1,994 | 1,845 | 1,627 | 0.32 | % | 0.30 | % | 0.29 | % | |||||||||||||||
| Certificates of Deposit | 615,325 | 624,547 | 669,996 | 1,270 | 1,273 | 1,386 | 0.83 | % | 0.83 | % | 0.85 | % | |||||||||||||||
| Total Interest-Bearing Deposits | 3,725,829 | 3,661,356 | 3,465,527 | 3,375 | 3,216 | 3,120 | 0.36 | % | 0.36 | % | 0.37 | % | |||||||||||||||
| Junior Subordinated Debentures | 106,363 | 106,363 | 133,605 | 965 | 955 | 1,156 | 3.59 | % | 3.59 | % | 3.42 | % | |||||||||||||||
| FHLB Borrowings and Other | 527,418 | 506,864 | 584,030 | 2,374 | 2,343 | 2,950 | 1.78 | % | 1.85 | % | 2.00 | % | |||||||||||||||
| Total Interest-Bearing Liabilities | 4,359,610 | 4,274,583 | 4,183,162 | 6,714 | 6,514 | 7,226 | 0.61 | % | 0.61 | % | 0.69 | % | |||||||||||||||
| Noninterest Bearing Demand Deposits | 1,334,791 | 1,422,928 | 1,212,127 | ||||||||||||||||||||||||
| Other Liabilities | 93,539 | 91,863 | 116,744 | ||||||||||||||||||||||||
| Total Average Liabilities | 5,787,940 | 5,789,374 | 5,512,033 | ||||||||||||||||||||||||
| Redeemable Noncontrolling Interests | 23,850 | 20,132 | 15,966 | ||||||||||||||||||||||||
| Average Shareholders' Equity | 654,262 | 640,549 | 609,009 | ||||||||||||||||||||||||
| TOTAL AVERAGE LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS, AND SHAREHOLDERS' EQUITY | $ | 6,466,052 | $ | 6,450,055 | $ | 6,137,008 | |||||||||||||||||||||
| Net Interest Income - on a Fully Taxable Equivalent Basis (FTE) | $ | 48,489 | $ | 46,690 | $ | 45,914 | |||||||||||||||||||||
| LESS: FTE Adjustment (8) | 2,221 | 2,168 | 2,015 | ||||||||||||||||||||||||
| Net Interest Income (GAAP Basis) | $ | 46,268 | $ | 44,522 | $ | 43,899 | |||||||||||||||||||||
| Interest Rate Spread | 2.96 | % | 2.86 | % | 2.95 | % | |||||||||||||||||||||
| Bank only Net Interest Margin | 3.21 | % | 3.11 | % | 3.23 | % | |||||||||||||||||||||
| Net Interest Margin | 3.14 | % | 3.04 | % | 3.14 | % | |||||||||||||||||||||
| Boston Private Financial Holdings, Inc. | ||||||||||||||||||
| Selected Financial Data | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| Average Balance | Interest Income/Expense | Average Yield/Rate | ||||||||||||||||
| (In Thousands) | Six Months Ended | Six Months Ended | Six Months Ended | |||||||||||||||
| AVERAGE BALANCE SHEET: | 6/30/14 | 6/30/13 | 6/30/14 | 6/30/13 | 6/30/14 | 6/30/13 | ||||||||||||
| AVERAGE ASSETS | ||||||||||||||||||
| Interest-Earning Assets: | ||||||||||||||||||
| Cash and Investments: | ||||||||||||||||||
| Taxable investment securities | $ | 258,470 | $ | 203,873 | $ | 1,366 | $ | 1,000 | 1.06 | % | 0.99 | % | ||||||
| Non-taxable investment securities (8) | 224,346 | 204,734 | 2,797 | 2,487 | 2.49 | % | 2.43 | % | ||||||||||
| Mortgage-backed securities | 336,982 | 306,268 | 3,625 | 2,742 | 2.15 | % | 1.79 | % | ||||||||||
| Federal funds sold and other | 195,632 | 159,976 | 599 | 358 | 0.62 | % | 0.44 | % | ||||||||||
| Total Cash and Investments | 1,015,430 | 874,851 | 8,387 | 6,587 | 1.66 | % | 1.51 | % | ||||||||||
| Loans: (9) | ||||||||||||||||||
| Commercial and Construction (8) | 2,845,103 | 2,753,758 | 64,317 | 63,844 | 4.50 | % | 4.61 | % | ||||||||||
| Residential | 2,037,200 | 1,983,662 | 32,153 | 33,025 | 3.16 | % | 3.33 | % | ||||||||||
| Home Equity and Other Consumer | 244,285 | 269,635 | 3,548 | 3,971 | 2.93 | % | 2.97 | % | ||||||||||
| Total Loans | 5,126,588 | 5,007,055 | 100,018 | 100,840 | 3.89 | % | 4.02 | % | ||||||||||
| Total Earning Assets | 6,142,018 | 5,881,906 | 108,405 | 107,427 | 3.52 | % | 3.64 | % | ||||||||||
| LESS: Allowance for Loan Losses | 78,155 | 84,019 | ||||||||||||||||
| Cash and due From Banks (Non-Interest Bearing) | 36,835 | 42,579 | ||||||||||||||||
| Other Assets | 367,856 | 385,142 | ||||||||||||||||
| TOTAL AVERAGE ASSETS | $ | 6,468,554 | $ | 6,225,608 | ||||||||||||||
| AVERAGE LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS, AND SHAREHOLDERS' EQUITY | ||||||||||||||||||
| Interest-Bearing Liabilities: | ||||||||||||||||||
| Interest-Bearing Deposits: (10) | ||||||||||||||||||
| Savings and NOW | $ | 573,691 | $ | 549,873 | $ | 209 | $ | 239 | 0.07 | % | 0.09 | % | ||||||
| Money Market | 2,499,981 | 2,329,515 | 3,839 | 3,713 | 0.31 | % | 0.32 | % | ||||||||||
| Certificates of Deposit | 619,884 | 674,367 | 2,543 | 2,954 | 0.83 | % | 0.91 | % | ||||||||||
| Total Interest-Bearing Deposits | 3,693,556 | 3,553,755 | 6,591 | 6,906 | 0.36 | % | 0.40 | % | ||||||||||
| Junior Subordinated Debentures | 106,363 | 135,311 | 1,920 | 2,310 | 3.59 | % | 3.39 | % | ||||||||||
| FHLB Borrowings and Other | 517,198 | 560,878 | 4,716 | 6,015 | 1.81 | % | 2.13 | % | ||||||||||
| Total Interest-Bearing Liabilities | 4,317,117 | 4,249,944 | 13,227 | 15,231 | 0.61 | % | 0.72 | % | ||||||||||
| Noninterest Bearing Demand Deposits | 1,380,285 | 1,238,320 | ||||||||||||||||
| Other Liabilities | 100,221 | 112,333 | ||||||||||||||||
| Total Average Liabilities | 5,797,623 | 5,600,597 | ||||||||||||||||
| Redeemable Noncontrolling Interests | 23,285 | 16,697 | ||||||||||||||||
| Average Shareholders' Equity | 647,646 | 608,314 | ||||||||||||||||
| TOTAL AVERAGE LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS, AND SHAREHOLDERS' EQUITY | $ | 6,468,554 | $ | 6,225,608 | ||||||||||||||
| Net Interest Income - on a Fully Taxable Equivalent Basis (FTE) | $ | 95,178 | $ | 92,196 | ||||||||||||||
| LESS: FTE Adjustment (8) | 4,389 | 4,021 | ||||||||||||||||
| Net Interest Income (GAAP Basis) | $ | 90,789 | $ | 88,175 | ||||||||||||||
| Interest Rate Spread | 2.91 | % | 2.92 | % | ||||||||||||||
| Bank only Net Interest Margin | 3.16 | % | 3.21 | % | ||||||||||||||
| Net Interest Margin | 3.09 | % | 3.12 | % | ||||||||||||||
| Boston Private Financial Holdings, Inc. | |||||||||
| Selected Financial Data | |||||||||
| (Unaudited) | |||||||||
| (In Thousands) | |||||||||
| LOAN DATA (11): | 6/30/14 | 3/31/14 | 6/30/13 | ||||||
| Commercial and Industrial Loans: | |||||||||
| New England | $ | 715,814 | $ | 704,056 | $ | 670,377 | |||
| San Francisco Bay | 119,554 | 108,365 | 72,511 | ||||||
| Southern California | 47,095 | 39,780 | 53,745 | ||||||
| Total Commercial and Industrial Loans | $ | 882,463 | $ | 852,201 | $ | 796,633 | |||
| Commercial Real Estate Loans: | |||||||||
| New England | $ | 717,166 | $ | 730,709 | $ | 622,529 | |||
| San Francisco Bay | 626,744 | 644,108 | 622,743 | ||||||
| Southern California | 436,991 | 483,817 | 433,396 | ||||||
| Total Commercial Real Estate Loans | $ | 1,780,901 | $ | 1,858,634 | $ | 1,678,668 | |||
| Construction and Land Loans: | |||||||||
| New England | $ | 81,453 | $ | 94,966 | $ | 104,451 | |||
| San Francisco Bay | 58,042 | 62,879 | 34,073 | ||||||
| Southern California | 10,927 | 16,871 | 11,721 | ||||||
| Total Construction and Land Loans | $ | 150,422 | $ | 174,716 | $ | 150,245 | |||
| Residential Loans: | |||||||||
| New England | $ | 1,231,902 | $ | 1,227,114 | $ | 1,172,993 | |||
| San Francisco Bay | 452,864 | 456,372 | 452,344 | ||||||
| Southern California | 354,306 | 352,369 | 313,031 | ||||||
| Total Residential Loans | $ | 2,039,072 | $ | 2,035,855 | $ | 1,938,368 | |||
| Home Equity Loans: | |||||||||
| New England | $ | 81,465 | $ | 77,470 | $ | 81,588 | |||
| San Francisco Bay | 27,804 | 28,159 | 32,705 | ||||||
| Southern California | 3,235 | 3,334 | 6,301 | ||||||
| Total Home Equity Loans | $ | 112,504 | $ | 108,963 | $ | 120,594 | |||
| Other Consumer Loans: | |||||||||
| New England | $ | 128,698 | $ | 119,500 | $ | 139,533 | |||
| San Francisco Bay | 6,917 | 7,311 | 8,024 | ||||||
| Southern California | 5,074 | 5,246 | 6,463 | ||||||
| Eliminations and other, net | — | 44 | 185 | ||||||
| Total Other Consumer Loans | $ | 140,689 | $ | 132,101 | $ | 154,205 | |||
| Total Loans | |||||||||
| New England | $ | 2,956,498 | $ | 2,953,815 | $ | 2,791,471 | |||
| San Francisco Bay | 1,291,925 | 1,307,194 | 1,222,400 | ||||||
| Southern California | 857,628 | 901,417 | 824,657 | ||||||
| Eliminations and other, net | — | 44 | 185 | ||||||
| Total Loans | $ | 5,106,051 | $ | 5,162,470 | $ | 4,838,713 | |||
| Boston Private Financial Holdings, Inc. | |||||||||||
| Selected Financial Data | |||||||||||
| (Unaudited) | |||||||||||
| (In Thousands) | |||||||||||
| CREDIT QUALITY (11): | 6/30/14 | 3/31/14 | 6/30/13 | ||||||||
| Special Mention Loans: | |||||||||||
| New England | $ | 55,882 | $ | 41,920 | $ | 28,644 | |||||
| San Francisco Bay | 24,264 | 25,055 | 21,617 | ||||||||
| Southern California | 26,455 | 36,452 | 19,077 | ||||||||
| Total Special Mention Loans | $ | 106,601 | $ | 103,427 | $ | 69,338 | |||||
| Accruing Substandard Loans (12): | |||||||||||
| New England | $ | 12,849 | $ | 12,319 | $ | 17,657 | |||||
| San Francisco Bay | 25,838 | 26,294 | 43,460 | ||||||||
| Southern California | 1,306 | 3,507 | 8,656 | ||||||||
| Total Accruing Substandard Loans | $ | 39,993 | $ | 42,120 | $ | 69,773 | |||||
| Nonaccruing Loans: | |||||||||||
| New England | $ | 19,818 | $ | 21,569 | $ | 25,361 | |||||
| San Francisco Bay | 16,487 | 12,541 | 19,379 | ||||||||
| Southern California | 5,315 | 7,944 | 7,549 | ||||||||
| Total Nonaccruing Loans | $ | 41,620 | $ | 42,054 | $ | 52,289 | |||||
| Other Real Estate Owned: | |||||||||||
| New England | $ | 336 | $ | 336 | $ | 191 | |||||
| San Francisco Bay | 585 | 585 | 585 | ||||||||
| Southern California | — | — | — | ||||||||
| Total Other Real Estate Owned | $ | 921 | $ | 921 | $ | 776 | |||||
| Loans 30-89 Days Past Due and Accruing (13): | |||||||||||
| New England | $ | 3,547 | $ | 4,472 | $ | 7,433 | |||||
| San Francisco Bay | 487 | 2,577 | 3,504 | ||||||||
| Southern California | 1,950 | 3,528 | 605 | ||||||||
| Total Loans 30-89 Days Past Due and Accruing | $ | 5,984 | $ | 10,577 | $ | 11,542 | |||||
| Loans (Charged-off)/ Recovered, Net for the Three Months Ended: | |||||||||||
| New England | $ | (622 | ) | $ | 540 | $ | (864 | ) | |||
| San Francisco Bay | 1,959 | 640 | 175 | ||||||||
| Southern California | 1,605 | 254 | 1,203 | ||||||||
| Total Net Loans (Charged-off)/ Recovered | $ | 2,942 | $ | 1,434 | $ | 514 | |||||
| Loans (Charged-off)/ Recovered, Net for the Six Months Ended: | |||||||||||
| New England | $ | (82 | ) | $ | (2,100 | ) | |||||
| San Francisco Bay | 2,599 | (1,333 | ) | ||||||||
| Southern California | 1,859 | 2,176 | |||||||||
| Total Net Loans (Charged-off)/ Recovered | $ | 4,376 | $ | (1,257 | ) | ||||||
| Boston Private Financial Holdings, Inc. | ||||||||||||||||||||||||||
| Selected Financial Data | ||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||
| FOOTNOTES: | ||||||||||||||||||||||||||
| (1) | On December 17, 2012, Boston Private Bank & Trust Company announced that it had entered into an agreement to sell its three offices in the Pacific Northwest region. The sale closed on May 10, 2013, at which time the Company recorded a gain on sale of $10.6 million. | |||||||||||||||||||||||||
| (2) | Net income from discontinued operations consists of contingent payments or expenses related to our divested affiliates, including Davidson Trust Company; Boston Private Value Investors, Inc.; Sand Hill Advisors, LLC; RINET Company, LLC; Gibraltar Private Bank & Trust Company; and Westfield Capital Management Company, LLC. | |||||||||||||||||||||||||
| (3) | 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, dividends paid on preferred stock, and dividends on participating securities. | |||||||||||||||||||||||||
| (4) |
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 non-participating 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, 2013 for additional information. |
|||||||||||||||||||||||||
| (5) | The Company uses certain non-GAAP financial measures, such as: Tangible Book Value Per Share and the Tangible Common Equity ("TCE") to Tangible Assets ("TA") ratio to provide information for investors to effectively analyze financial trends of ongoing business activities, and to enhance comparability with peers across the financial sector. | |||||||||||||||||||||||||
| Reconciliations from the Company's GAAP Total Equity to Total Assets ratio to the Non-GAAP TCE to TA ratio, and from GAAP Book Value to Non-GAAP Tangible Book Value are presented below: | ||||||||||||||||||||||||||
| The Company calculates Tangible Assets by adjusting Total Assets to exclude Goodwill and Intangible Assets. | ||||||||||||||||||||||||||
| The Company calculates Tangible Common Equity by adjusting Total Equity to exclude non-convertible Series D Preferred stock and exclude Goodwill and Intangible Assets, net. | ||||||||||||||||||||||||||
| (In thousands, except per share data) | 6/30/14 | 3/31/14 | 6/30/13 | |||||||||||||||||||||||
| Total Balance Sheet Assets | $ | 6,388,823 | $ | 6,705,420 | $ | 5,966,930 | ||||||||||||||||||||
| LESS: Goodwill and Intangible Assets, net | (128,686 | ) | (129,731 | ) | (132,892 | ) | ||||||||||||||||||||
| Tangible Assets (non-GAAP) | $ | 6,260,137 | $ | 6,575,689 | $ | 5,834,038 | ||||||||||||||||||||
| Total Shareholders' Equity | $ | 662,651 | $ | 645,979 | $ | 609,277 | ||||||||||||||||||||
| LESS: Series D Preferred Stock (non-convertible) | (47,753 | ) | (47,753 | ) | (47,754 | ) | ||||||||||||||||||||
| LESS: Goodwill and Intangible Assets, net | (128,686 | ) | (129,731 | ) | (132,892 | ) | ||||||||||||||||||||
| Total adjusting items | (176,439 | ) | (177,484 | ) | (180,646 | ) | ||||||||||||||||||||
| Tangible Common Equity (non-GAAP) | $ | 486,212 | $ | 468,495 | $ | 428,631 | ||||||||||||||||||||
| Total Equity/Total Assets | 10.37 | % | 9.63 | % | 10.21 | % | ||||||||||||||||||||
| Tangible Common Equity/Tangible Assets (non-GAAP) | 7.77 | % | 7.12 | % | 7.35 | % | ||||||||||||||||||||
| Total Risk Weighted Assets * | $ | 4,629,247 | $ | 4,707,604 | $ | 4,379,436 | ||||||||||||||||||||
| Tier I Common Equity * | $ | 491,982 | $ | 475,930 | $ | 435,630 | ||||||||||||||||||||
| Tier I Common Equity/ Risk Weighted Assets | 10.63 | % | 10.11 | % | 9.95 | % | ||||||||||||||||||||
| End of Period Shares Outstanding | 80,394 | 80,001 | 79,734 | |||||||||||||||||||||||
| Book Value Per Common Share | $ | 7.65 | $ | 7.48 | $ | 7.04 | ||||||||||||||||||||
| Tangible Book Value Per Share (non-GAAP) | $ | 6.05 | $ | 5.86 | $ | 5.38 | ||||||||||||||||||||
| * Risk Weighted Assets and Tier I Common Equity for June 30, 2014 are presented based on estimated data. | ||||||||||||||||||||||||||
| (6) | The Company uses certain non-GAAP financial measures, such as: Return on Average Common Equity and Return on Average Tangible Common Equity to provide information for investors to effectively analyze financial trends of ongoing business activities, and to enhance comparability with peers across the financial sector. | |||||||||||||||||||||||||
| Reconciliations from the Company's GAAP Return on Average Equity ratio to the Non-GAAP Return on Average Common Equity ratio, and the Non-GAAP Return on Average Tangible Common Equity ratio are presented below: | ||||||||||||||||||||||||||
| The Company 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. | ||||||||||||||||||||||||||
| (In thousands, except per share data) | 6/30/14 | 3/31/14 | 6/30/13 | |||||||||||||||||||||||
| Total average shareholders' equity | $ | 654,262 | $ | 640,549 | $ | 609,009 | ||||||||||||||||||||
| LESS: Average Series D preferred stock (non-convertible) | (47,753 | ) | (47,753 | ) | (39,501 | ) | ||||||||||||||||||||
| Average common equity (non-GAAP) | 606,509 | 592,796 | 569,508 | |||||||||||||||||||||||
| LESS: Average goodwill and intangible assets, net | (129,216 | ) | (130,272 | ) | (133,451 | ) | ||||||||||||||||||||
| Total adjusting items | (129,216 | ) | (130,272 | ) | (133,451 | ) | ||||||||||||||||||||
| Average Tangible Common Equity (non-GAAP) | $ | 477,293 | $ | 462,524 | $ | 436,057 | ||||||||||||||||||||
| Net income attributable to the Company | $ | 21,332 | $ | 17,041 | $ | 21,328 | ||||||||||||||||||||
| Less: Dividends on Series D preferred stock | (869 | ) | (869 | ) | (560 | ) | ||||||||||||||||||||
| Net income, after dividends on Series D preferred stock (non-GAAP) | $ | 20,463 | $ | 16,172 | $ | 20,768 | ||||||||||||||||||||
| Return on Average Equity - Three Months Ended (Annualized) | 13.04 | % | 10.64 | % | 14.01 | % | ||||||||||||||||||||
| Return on Average Common Equity - Three Months Ended (Annualized) (non-GAAP) | 13.50 | % | 10.91 | % | 14.59 | % | ||||||||||||||||||||
| Return on Average Tangible Common Equity - Three Months Ended (Annualized) (non-GAAP) | 17.15 | % | 13.99 | % | 19.05 | % | ||||||||||||||||||||
| (7) | The Company uses certain non-GAAP financial measures, such as: pre-tax, pre-provision earnings and the efficiency ratio to provide information for investors to effectively analyze financial trends of ongoing business activities, and to enhance comparability with peers across the financial sector. | |||||||||||||||||||||||||
|
Reconciliations from the Company's GAAP income from continuing operations before income taxes to non-GAAP pre-tax, pre-provision earnings; from GAAP net income attributable to the Company to Non-GAAP net income attributable to the Company, excluding the sale of the Pacific Northwest offices; from GAAP diluted total EPS to Non-GAAP diluted total EPS, excluding the effect of significant transactions; and from GAAP efficiency ratio to Non-GAAP efficiency ratio (FTE basis) are presented below: |
||||||||||||||||||||||||||
| Three Months Ended | Six months ended | |||||||||||||||||||||||||
| (In thousands, except per share data) | 6/30/14 | 3/31/14 | 6/30/13 | 6/30/14 | 6/30/13 | |||||||||||||||||||||
| Income before income taxes (GAAP) | $ | 31,240 | $ | 23,487 | $ | 30,217 | $ | 54,727 | $ | 48,668 | ||||||||||||||||
| ADD BACK: Provision/ (credit) for loan losses | (5,000 | ) | (1,200 | ) | (2,000 | ) | (6,200 | ) | (2,000 | ) | ||||||||||||||||
| Pre-tax, pre-provision earnings (non-GAAP) | $ | 26,240 | $ | 22,287 | $ | 28,217 | $ | 48,527 | $ | 46,668 | ||||||||||||||||
| Net income attributable to the Company (GAAP) | $ | 21,332 | $ | 17,041 | $ | 21,328 | $ | 38,373 | $ | 34,531 | ||||||||||||||||
| LESS: Gain on sale of Pacific Northwest offices, net of tax |
— |
— |
6,267 |
— |
6,267 |
|||||||||||||||||||||
| Net income attributable to the Company, excluding the effect of significant transactions (Non-GAAP) | $ |
21,332 |
$ |
17,041 |
$ |
15,061 |
$ |
38,373 |
$ |
28,264 |
||||||||||||||||
|
Net income attributable to the Common Shareholders, after allocation to participating securities (GAAP) |
$ |
20,005 |
$ |
15,863 |
$ |
8,661 |
$ |
35,862 |
$ |
20,608 |
||||||||||||||||
| ADD BACK: Deemed dividend due to repurchase of Series B Preferred |
— |
— |
11,738 |
— |
11,738 |
|||||||||||||||||||||
| LESS: Gain on sale of Pacific Northwest offices, net of tax |
— |
— |
(6,267 |
) |
— |
|
(6,267 |
) |
||||||||||||||||||
|
Net income attributable to the Common Shareholders, after allocation to participating securities, excluding the effect of significant transactions (Non-GAAP) |
$ |
20,005 |
$ |
15,863 |
$ |
14,132 |
$ |
35,862 |
$ |
26,079 |
||||||||||||||||
|
Diluted Total Earnings Per Share (GAAP) |
$ |
0.25 |
$ |
0.20 |
$ |
0.11 |
$ |
0.45 |
$ |
0.26 |
||||||||||||||||
| Diluted Total Earnings Per Share, excluding the effect of significant transactions (Non-GAAP) | $ |
0.25 |
$ |
0.20 |
$ |
0.18 |
$ |
0.45 |
$ |
0.33 |
||||||||||||||||
| Total operating expense (GAAP) | $ |
54,402 |
$ |
54,968 |
$ |
56,666 |
$ |
109,370 |
$ |
113,252 |
||||||||||||||||
| Less: Amortization of intangibles |
1,045 |
1,053 |
1,101 |
2,098 |
2,219 |
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| Total operating expense (excluding amortization of intangibles) (non-GAAP) | $ | 53,357 | $ | 53,915 | $ | 55,565 | $ | 107,272 | $ | 111,033 | ||||||||||||||||
| Net interest income | $ | 46,268 | $ | 44,522 | $ | 43,899 | $ | 90,790 | $ | 88,175 | ||||||||||||||||
| Total core fees and income | 34,147 | 31,664 | 30,107 | 65,811 | 60,028 | |||||||||||||||||||||
| Total other income | 227 | 1,069 | 10,877 | 1,296 | 11,717 | |||||||||||||||||||||
| FTE income | 2,221 | 2,168 | 2,015 | 4,389 | 4,021 | |||||||||||||||||||||
| Total revenue (FTE basis) | $ | 82,863 | $ | 79,423 | $ | 86,898 | $ | 162,286 | $ | 163,941 | ||||||||||||||||
| Efficiency Ratio, before deduction of intangible amortization (GAAP) | 67.46 | % | 71.15 | % | 66.76 | % | 69.27 | % | 70.82 | % | ||||||||||||||||
| Efficiency Ratio, FTE Basis (non-GAAP) | 64.39 | % | 67.88 | % | 63.94 | % | 66.10 | % | 67.73 | % | ||||||||||||||||
| (8) | 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. | |||||||||||||||||||||||||
| (9) | Includes Loans Held for Sale and Nonaccrual Loans. | |||||||||||||||||||||||||
| (10) | Includes Deposits Held for Sale. | |||||||||||||||||||||||||
| (11) | The concentration of the Private Banking loan data and credit quality is primarily based on the location of the lender's regional offices. Loans in the Pacific Northwest region that were not included the sale of that region's offices are included with the offices from which they are being managed after the sale. Net loans from the Company to certain principals of the Company's affiliate partners, loans at the Company's non-banking segments, and inter-company loan eliminations are identified as “Eliminations and other, net”. | |||||||||||||||||||||||||
|
(12) |
Accruing substandard loans include loans that are classified as substandard but are still accruing interest income. Boston Private Bank & Trust Company may classify a loan as substandard where known information about possible credit problems of the related borrowers causes management to have doubts as to the ability of such borrowers to comply with the present repayment terms and which may result in disclosure of such loans as nonaccrual at some time in the future. | |||||||||||||||||||||||||
|
(13) |
In addition to loans 30-89 days past due and accruing, at June 30, 2014, the Company had two loans totaling $0.1 million that were more than 90 days past due but still on accrual status. These loans originated in the New England region. At March 31, 2014, the Company had three loans totaling $0.6 million that were more than 90 days past due but still on accrual status. These loans originated in the New England region. At June 30, 2013, the Company had one loan totaling $0.1 million that was more than 90 days past due but still on accrual status. This loan originated in the New England region. |
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