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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Boston Private Financial Holdings Inc | NASDAQ:BPFH | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 14.75 | 7.79 | 14.97 | 0 | 01:00:00 |
First Quarter 2021 Highlights include:
Boston Private Financial Holdings, Inc. (NASDAQ: BPFH) (the “Company” or “Boston Private”) today reported first quarter 2021 Net income attributable to the Company of $10.7 million, compared to $25.0 million for the fourth quarter of 2020 and $0.8 million for the first quarter of 2020. First quarter 2021 Diluted earnings per share were $0.13, compared to $0.30 in the fourth quarter of 2021 and $0.01 in the first quarter of 2020.
"I am proud of the dedication and commitment shown by the Boston Private employees who continue to deliver exceptional client service and execute on our strategic objectives, while also preparing for our pending merger with SVB Financial Group," said Anthony DeChellis, CEO of Boston Private. "This quarter's financial results include transaction costs related to the pending merger with SVB Financial Group, a release from our allowance for loan losses, and continued strong deposit growth."
Announced Merger
As previously announced, the Company entered into a definitive merger agreement with SVB Financial Group ("SVB") pursuant to which SVB will acquire Boston Private. The transaction was unanimously approved by both companies' Boards of Directors and is expected to close in mid-2021, subject to the satisfaction of customary closing conditions, including receipt of customary regulatory approvals and approval by the shareholders of Boston Private.
Summary Financial Results
% Change
($ in millions, except for per share data)
1Q21
4Q20
1Q20
LQ
Y/Y
Net income - GAAP
$10.7
$25.0
$0.8
(57)
%
nm
Diluted earnings per share - GAAP
$0.13
$0.30
$0.01
(57)
%
nm
Non-GAAP Financial Measures:
Pre-tax, pre-provision income
$9.7
$28.1
$17.9
(65)
%
(46)
%
Return on average common equity ("ROACE")
4.9
%
11.5
%
0.4
%
Return on average tangible common equity ("ROATCE")
5.6
%
12.7
%
0.7
%
nm = not meaningful
The Company's financial results in the first quarter of 2021 were impacted by:
Net Interest Income and Margin
% Change
($ in millions)
1Q21
4Q20
1Q20
LQ
Y/Y
Net interest income
$59.5
$59.4
$57.3
—
%
4
%
Net interest margin
2.45
%
2.52
%
2.76
%
Net interest income for the first quarter of 2021 was $59.5 million, flat linked quarter and a 4% increase year-over-year. The year-over-year increase was primarily driven by $3.6 million of Paycheck Protection Program ("PPP") loan-related income recognized in the first quarter of 2021. The Small Business Administration ("SBA") forgave $75 million of PPP loans in the first quarter of 2021, which drove the accelerated recognition of PPP income.
Net interest margin decreased 7 basis points on a linked quarter basis to 2.45%. The decline was primarily driven by excess cash and investments balances and lower asset yields, partially offset by lower funding costs.
Noninterest Income
% Change
($ in millions)
1Q21
4Q20
1Q20
LQ
Y/Y
Wealth management and trust fees
$19.1
$19.0
$18.4
1
%
4
%
Investment management fees
0.5
1.2
1.9
(58)
%
(75)
%
Private banking fees 1
3.2
5.0
2.6
nm
22
%
Total core fees and income
$22.8
$25.2
$22.9
(10)
%
—
%
Total other income
3.4
1.4
(1.4)
nm
nm
Total noninterest income
$26.2
$26.7
$21.5
(2)
%
22
%
nm = not meaningful
1 Private banking fees includes Other banking fee income and Gain/(loss) on sale of loans, net
Total core fees and income for the first quarter of 2021 were $22.8 million, a 10% decrease linked quarter. The linked quarter decrease was primarily driven by lower swap fee income within Private banking fees and lower Investment management fees in the first quarter of 2021.
Total other income includes a gain of $2.4 million for the first quarter of 2021 related to the revaluation of the BOS receivable.
Assets Under Management/Advisory
% Change
($ in millions)
1Q21
4Q20
1Q20
LQ
Y/Y
Wealth Management and Trust
$17,002
$16,574
$13,497
3
%
26
%
Other 2
196
526
1,016
(63)
%
(81)
%
Total assets under management/advisory
$17,198
$17,100
$14,513
1
%
19
%
Net flows
Wealth Management and Trust
$(20)
$(128)
$176
Other 2
(388)
(268)
(26)
Total net flows
$(408)
$(396)
$150
2 Includes results from DGHM
Total AUM was $17.2 billion as of March 31, 2021, a 1% increase linked quarter. The linked quarter increase was primarily driven by the impact of higher equity market values, partially offset by net outflows.
Total net flows were negative $408 million during the first quarter of 2021, driven by net flows of negative $388 million at DGHM and negative $20 million in the Wealth Management and Trust segment. New business into the Wealth Management & Trust segment was $231 million for the first quarter of 2021, compared to $297 million for the fourth quarter of 2020.
Noninterest Expense
% Change
($ in millions)
1Q21
4Q20
1Q20
LQ
Y/Y
Salaries and employee benefits
$40.9
$36.0
$35.1
14
%
17
%
Occupancy and equipment
8.2
7.7
7.6
6
%
7
%
Information systems
9.7
8.6
6.7
13
%
45
%
Professional services
3.3
2.7
3.6
20
%
(8)
%
Merger costs
10.7
—
—
nm
nm
Marketing and business development
0.6
1.2
1.9
(46)
%
(67)
%
Amortization of intangibles
0.7
0.6
0.7
18
%
(7)
%
FDIC insurance
1.0
0.9
—
10
%
n/a
Other
0.9
0.2
5.2
nm
(83)
%
Total noninterest expense
$75.9
$58.0
$60.9
31
%
25
%
Memo: Excluding Off-Balance Sheet Provision
Reserve for unfunded loan commitments
$(2.0)
$(2.4)
$1.8
(16)
%
nm
Total noninterest expense, excluding Reserve for unfunded loan commitments (non-GAAP)
$77.9
$60.4
$59.1
29
%
32
%
Total noninterest expense for the first quarter of 2021 was $75.9 million, a 31% increase linked quarter and a 25% increase year-over-year. The increase was primarily driven by $10.7 million of transaction costs within Merger costs expense related to the proposed merger with SVB. The linked quarter increase was also driven by seasonal compensation expense for bonuses and payroll taxes, and both the linked quarter and year-over-year increases were also driven by higher Information systems expense from technology initiatives placed in service.
Income Tax Expense
The Company's effective tax rate for the first quarter of 2021 was 36.3%. The effective tax rate is higher primarily due to the expected non-deductibility of certain transaction costs related to the proposed merger with SVB.
Loans - QTD Averages & Yields
% Change
($ in millions)
1Q21
4Q20
1Q20
LQ
Y/Y
Commercial and industrial
$1,034
$1,036
$1,149
—
%
(10)
%
Paycheck Protection Program
327
349
—
(6)
%
nm
Commercial real estate
2,723
2,711
2,582
—
%
5
%
Construction and land
165
172
233
(4)
%
(29)
%
Residential
2,667
2,721
2,851
(2)
%
(6)
%
Home equity
76
79
86
(4)
%
(11)
%
Consumer and other
122
121
132
1
%
(8)
%
Total loans
$7,115
$7,189
$7,034
(1)
%
1
%
Total loans, excluding PPP (non-GAAP)
$6,789
$6,840
$7,034
(1)
%
(3)
%
Total loan yields
3.26
%
3.31
%
3.75
%
Average total loans, excluding PPP (non-GAAP) in the first quarter of 2021 decreased 1% linked quarter and decreased 3% year-over-year.
Deposits - QTD Averages & Costs
% Change
($ in millions)
1Q21
4Q20
1Q20
LQ
Y/Y
Noninterest bearing deposits
$2,552
$2,483
$2,046
3
%
25
%
Interest bearing deposits
6,277
5,868
5,061
7
%
24
%
Total deposits
$8,829
$8,351
$7,107
6
%
24
%
Cost of total deposits
0.22
%
0.26
%
0.72
%
Cost of total interest-bearing deposits
0.30
%
0.37
%
1.02
%
Average total deposits in the first quarter of 2021 increased 6% linked quarter and 24% year-over-year to $8.8 billion, driven by a combination of existing and new client balances.
Provision and Asset Quality
($ in millions)
1Q21
4Q20
3Q20
2Q20
1Q20
Provision and Allowance
Provision/(credit) for loan losses
$(7.0)
$(3.0)
$(4.6)
$22.6
$17.0
Reserve for unfunded loan commitments
(2.0)
(2.4)
1.8
2.8
1.8
Total Provision/(credit) for credit losses
$(9.0)
$(5.4)
$(2.8)
$25.4
$18.8
Allowance for loan losses as a % of Total loans
1.03
%
1.14
%
1.17
%
1.22
%
0.97
%
Asset Quality
Total net loans (charged-off)/ recovered
$(0.2)
$(0.3)
$(0.2)
$(1.5)
$(0.3)
Total nonaccrual loans
$25.8
$23.9
$41.3
$25.6
$24.3
Nonaccrual loans as a % of Total loans
0.36
%
0.34
%
0.57
%
0.35
%
0.35
%
Special mention loans (criticized loans)
$152.5
$187.2
$199.5
$191.9
$92.6
Classified loans
161.9
130.7
123.1
114.2
112.3
Total criticized and classified loans
$314.4
$318.0
$322.6
$306.1
$204.9
The Company recorded a Total provision credit for credit losses of $9.0 million during the first quarter of 2021. The provision release was primarily driven by an improved economic forecast related to the current expected credit losses methodology and a change in the weighting of forecast scenarios used. The Allowance for loan losses as a percentage of Total loans, excluding PPP loans (non-GAAP), was 1.08% in the first quarter of 2021, compared to 1.19% in the fourth quarter of 2020.
Total nonaccrual loans as of March 31, 2021 were $25.8 million, an increase of $1.9 million, or 8%, on a linked quarter basis, primarily driven by one Commercial real estate relationship in New England and one Commercial and industrial relationship in Northern California.
Total criticized and classified loans as of March 31, 2021 were $314.4 million, a decrease of $3.6 million, or 1%, linked quarter. Classified loans increased 24% to $161.9 million in the first quarter of 2021, primarily driven by the downgrade of three Commercial real estate loans in New England and Northern California.
As of March 31, 2021:
Capital
1Q21
4Q20
3Q20
2Q20
1Q20
Tangible common equity/ Tangible assets (non-GAAP)
7.6
%
8.0
%
8.3
%
8.3
%
8.8
%
Tangible book value per share (non-GAAP)
$9.61
$9.73
$9.48
$9.25
$9.31
Regulatory Capital Ratios: 3
Tier 1 common equity
11.4
%
11.5
%
11.3
%
11.1
%
11.2
%
Tier 1 risk-based capital
12.8
%
13.0
%
12.8
%
12.6
%
12.7
%
Total risk-based capital
14.0
%
14.3
%
14.1
%
13.9
%
13.8
%
Tier 1 leverage capital
8.7
%
8.9
%
9.2
%
9.2
%
9.7
%
3 Current quarter information is presented based on estimated data.
The Company's tangible book value per share increased 3% year-over-year to $9.61 in the first quarter of 2021.
Dividend Payments
Concurrent with the release of first quarter 2021 earnings, the Board of Directors of the Company declared a cash dividend payable to common shareholders of $0.06 per share. The record date for this dividend is May 7, 2021, and the payment date is May 21, 2021.
Non-GAAP Financial Measures
The Company uses certain non-GAAP financial measures to provide information for investors to effectively analyze financial trends of ongoing business activities, and to enhance comparability with peers across the financial sector.
These non-GAAP financial measures include: return on average common equity; return on average tangible common equity; return on average assets; tangible book value per share; pre-tax, pre-provision income; tangible common equity / tangible assets; the efficiency ratio, excluding amortization of intangibles; net income/(loss) attributable to the Company, excluding notable items; total noninterest expense, excluding reserve for unfunded loan commitments; net income/(loss) attributable to the common shareholders, treasury stock method, excluding notable items; diluted earnings/(loss) per share, excluding notable items; average total loans, excluding PPP; and total loans, excluding PPP.
A detailed reconciliation table of the Company’s GAAP to non-GAAP measures is included in the tables of this release and beginning on page 14 of the attached financial statements.
About Boston Private
Boston Private is a leading provider of integrated wealth management, trust and banking services to individuals, families, businesses and nonprofits.
For more than 30 years, Boston Private has delivered comprehensive advice coupled with deep technical expertise to help clients simplify their lives and achieve their goals. The firm offers the capabilities of a large institution with the superior service of a boutique firm to clients across the United States.
Boston Private is the corporate brand of Boston Private Financial Holdings, Inc. (NASDAQ: BPFH).
For more information, visit www.bostonprivate.com.
Forward-Looking Statements
Certain statements in this press release that are not historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties. These statements include, among others, statements regarding our strategy; evaluations of interest rate trends and future liquidity; expectations as to changes in assets, deposits and results of operations; the impact of the COVID-19 pandemic; future operations; market position and financial position; and prospects, plans and objectives of management. You should not place undue reliance on our forward-looking statements. You should exercise caution in interpreting and relying on forward-looking statements because they are subject to significant risks, uncertainties and other factors which are, in some cases, beyond the Company’s control.
Forward-looking statements are based on the current assumptions and beliefs of management and are only expectations of future results. The Company’s actual results could differ materially from those projected in the forward-looking statements as a result of, among other factors, the negative impacts and disruptions of the COVID-19 pandemic and measures taken to contain its spread on our employees, customers, business operations, credit quality, financial position, liquidity and results of operations; the failure to obtain our shareholder’s approval to our proposed merger with SVB; the risk that a condition to closing of the proposed merger may not be satisfied; the risk that a regulatory approval that may be required for the proposed merger is not obtained or is obtained subject to conditions that are not anticipated; the effect of the announcement of the proposed merger on our ability to maintain relationships with our key partners, customers and employees, and on our operating results and business generally; changes in customer behavior; the possibility that future credits losses are higher than currently expected due to changes in economic assumptions, customer behavior or adverse economic developments; turbulence in the capital and debt markets; changes in interest rates; increases in loan defaults and charge-off rates; decreases in the value of securities and other assets; changes in loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and investments; competitive pressures from other financial institutions; operational risks including, but not limited to, cybersecurity incidents, fraud, natural disasters and future pandemics; changes in regulation; reputational risk relating to the Company’s participation in the Paycheck Protection Program and other pandemic-related legislative and regulatory initiatives and programs; risks that goodwill and intangibles recorded in the Company’s financial statements will become impaired; the risk that the Company’s deferred tax asset may not be realized; risks related to the identification and implementation of acquisitions, dispositions and restructurings; changes in assumptions used in making such forward-looking statements; and the other risks and uncertainties detailed in the Company’s 2020 Annual Report on Form 10-K and updated by the Company’s Quarterly Reports on Form 10-Q and other filings submitted to the Securities and Exchange Commission. Forward-looking statements speak only as of the date on which they are made. The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.
BOSTON PRIVATE FINANCIAL HOLDINGS, INC.
Consolidated Balance Sheets
Unaudited ($ in thousands, except share and per share data)
1Q21
4Q20
3Q20
2Q20
1Q20
ASSETS:
Cash and cash equivalents
$
1,389,943
$
1,055,588
$
546,263
$
179,027
$
61,714
Investment securities available-for-sale
1,339,408
1,243,693
1,011,327
1,002,970
993,166
Investment securities held-to-maturity
31,943
35,223
38,600
42,495
45,395
Equity securities at fair value
39,708
41,452
32,818
24,492
23,080
Stock in Federal Home Loan Bank and Federal Reserve Bank
28,651
28,663
36,618
42,407
45,273
Loans held for sale
8,434
17,421
15,074
9,786
7,671
Loans
7,216,325
7,104,309
7,222,569
7,332,954
7,043,338
Less: Allowance for loan losses
74,010
81,238
84,551
89,324
68,211
Loans, net of Allowance for loan losses
7,142,315
7,023,071
7,138,018
7,243,630
6,975,127
Premises and equipment, net
41,637
44,087
42,907
43,805
43,544
Goodwill
57,607
57,607
57,607
57,607
57,607
Intangible assets, net
8,389
9,056
8,898
8,935
9,637
Accrued interest receivable
26,029
26,191
25,935
24,918
24,054
Deferred income taxes, net
11,353
6,774
8,250
9,116
5,630
Right-of-use assets
93,224
97,859
94,879
94,143
98,896
Other assets
319,851
362,048
374,111
375,575
355,532
TOTAL ASSETS
$
10,538,492
$
10,048,733
$
9,431,305
$
9,158,906
$
8,746,326
LIABILITIES:
Deposits
$
9,147,618
$
8,595,366
$
7,827,719
$
7,427,397
$
6,835,572
Securities sold under agreements to repurchase
46,262
53,472
42,544
46,623
45,319
Federal funds purchased
—
—
—
—
145,000
Federal Home Loan Bank borrowings
115,019
114,659
296,236
426,313
491,254
Junior subordinated debentures
106,363
106,363
106,363
106,363
106,363
Lease liabilities
107,143
112,339
108,932
108,234
113,574
Other liabilities
157,664
198,526
203,342
218,771
180,452
TOTAL LIABILITIES
9,680,069
9,180,725
8,585,136
8,333,701
7,917,534
SHAREHOLDERS' EQUITY:
Common stock, $1.00 par value; authorized: 170,000,000 shares
82,455
82,334
82,255
82,058
81,800
Additional paid-in capital
600,089
597,558
597,113
594,463
593,167
Retained earnings
162,137
156,431
136,394
118,647
131,761
Accumulated other comprehensive income
13,742
31,685
30,407
30,037
22,064
TOTAL SHAREHOLDERS' EQUITY
858,423
868,008
846,169
825,205
828,792
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$
10,538,492
$
10,048,733
$
9,431,305
$
9,158,906
$
8,746,326
BOSTON PRIVATE FINANCIAL HOLDINGS, INC.
Consolidated Income Statements
Unaudited ($ in thousands, except share and per share data)
1Q21
4Q20
3Q20
2Q20
1Q20
REVENUE:
Interest income
$
64,893
$
66,351
$
65,453
$
68,819
$
73,082
Interest expense
5,416
6,944
7,629
9,881
15,825
Net interest income
59,477
59,407
57,824
58,938
57,257
Provision/(credit) for loan losses 4
(7,004)
(2,999)
(4,569)
22,604
16,962
Net interest income after Provision/(credit) for loan losses
66,481
62,406
62,393
36,334
40,295
Wealth management and trust fees 5
19,136
19,016
18,240
17,261
18,371
Investment management fees
489
1,173
1,393
1,770
1,925
Private banking fee income
2,411
4,304
1,320
2,395
2,490
Gain on sale of loans, net
747
718
1,006
204
100
Total core fees and income
22,783
25,211
21,959
21,630
22,886
Total other income
3,387
1,445
1,086
1,032
(1,365)
TOTAL REVENUE 6
85,647
86,063
80,869
81,600
78,778
NONINTEREST EXPENSE:
Salaries and employee benefits
40,904
36,022
34,671
33,937
35,096
Occupancy and equipment
8,205
7,723
8,150
7,560
7,646
Information systems
9,719
8,633
7,096
7,113
6,725
Professional services
3,302
2,744
4,025
3,446
3,601
Merger costs
10,665
—
—
—
—
Marketing and business development
624
1,154
935
2,313
1,890
Amortization of intangibles
667
566
714
702
715
FDIC insurance
967
876
960
767
—
Other 4
870
249
4,386
5,615
5,235
TOTAL NONINTEREST EXPENSE
75,923
57,967
60,937
61,453
60,908
INCOME/(LOSS) BEFORE INCOME TAXES
16,728
31,095
24,501
(2,457)
908
Income tax expense
6,076
6,124
1,821
841
102
Net income/(loss) before attribution to noncontrolling interests
10,652
24,971
22,680
(3,298)
806
Less: Net income attributable to noncontrolling interests
—
—
—
—
6
NET INCOME/(LOSS) ATTRIBUTABLE TO THE COMPANY
$
10,652
$
24,971
$
22,680
$
(3,298)
$
800
Adjustments, treasury stock method 7
—
—
—
—
414
NET INCOME/(LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS
$
10,652
$
24,971
$
22,680
$
(3,298)
$
1,214
COMMON SHARE DATA:
Weighted average basic shares outstanding
82,429,162
82,292,450
82,221,705
81,929,752
83,005,064
Weighted average diluted shares outstanding 8
83,934,107
82,764,339
82,362,338
81,929,752
83,318,041
Diluted earnings/(loss) per share
$
0.13
$
0.30
$
0.28
$
(0.04)
$
0.01
4 Total Provision for credit losses includes the Provision/(credit) for loan losses and the Reserve for unfunded loan commitments within Other expense. 5 Wealth management and trust fees consists of revenue from Boston Private Wealth LLC ("BPW") and the trust operations of Boston Private Bank & Trust Company. 6 Total revenue is the sum of Net interest income, Total core fees and income, and Total other income. 7 Adjustments to Net income/(loss) attributable to the Company to arrive at Net income/(loss) attributable to common shareholders, treasury stock method, as presented in these tables, include decreases/(increases) in Noncontrolling interests redemption value, if any. 8 For a description of the Company's policies regarding Diluted earnings per share, please refer to Part II. Item 8. “Financial Statements and Supplementary Data - Note 16: Earnings Per Share” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.
BOSTON PRIVATE FINANCIAL HOLDINGS, INC.
Consolidated Financial Highlights
Unaudited ($ in thousands, except share and per share data)
1Q21
4Q20
3Q20
2Q20
1Q20
KEY STATISTICS:
Return on average assets (non-GAAP) 9
0.42
%
1.00
%
0.96
%
(0.15)
%
0.04
%
ROACE (non-GAAP) 9
4.91
%
11.50
%
10.68
%
(1.58)
%
0.39
%
ROATCE (non-GAAP) 9
5.58
%
12.69
%
11.88
%
(1.43)
%
0.72
%
Efficiency ratio (non-GAAP) 9
87.9
%
66.7
%
74.5
%
74.4
%
76.4
%
Noninterest income to total revenue
30.6
%
31.0
%
28.5
%
27.8
%
27.3
%
Net interest margin
2.45
%
2.52
%
2.61
%
2.75
%
2.76
%
Average loan to average deposit ratio
80.6
%
86.1
%
94.6
%
100.5
%
99.0
%
Cost of total deposits
0.22
%
0.26
%
0.33
%
0.41
%
0.72
%
Cost of interest-bearing deposits
0.30
%
0.37
%
0.48
%
0.59
%
1.02
%
Cost of total funding
0.24
%
0.32
%
0.37
%
0.50
%
0.83
%
Allowance for loan losses / Total loans
1.03
%
1.14
%
1.17
%
1.22
%
0.97
%
Nonperforming loans / Total loans
0.36
%
0.34
%
0.57
%
0.35
%
0.35
%
Net (charge-offs)/recoveries / Total loans 9
(0.01)
%
(0.02)
%
(0.01)
%
(0.08)
%
(0.02)
%
CAPITAL HIGHLIGHTS:
Tier 1 common equity 3
$
782,687
$
773,017
$
752,492
$
731,316
$
742,044
Tier 1 capital 3
$
882,709
$
873,039
$
852,514
$
831,338
$
842,066
Total capital 3
$
961,191
$
956,919
$
935,887
$
913,936
$
914,572
Risk-weighted assets 3
$
6,877,450
$
6,706,524
$
6,659,752
$
6,593,957
$
6,627,339
Average assets for leverage 3
$
10,180,856
$
9,790,852
$
9,237,942
$
9,009,565
$
8,691,254
Tier 1 common equity ratio 3
11.38
%
11.53
%
11.30
%
11.09
%
11.20
%
Tier 1 risk-based capital ratio 3
12.83
%
13.02
%
12.80
%
12.61
%
12.71
%
Total risk-based capital ratio 3
13.98
%
14.27
%
14.05
%
13.86
%
13.80
%
Tier 1 leverage capital ratio 3
8.67
%
8.92
%
9.23
%
9.23
%
9.69
%
Total equity / Total assets
8.15
%
8.64
%
8.97
%
9.01
%
9.48
%
Tangible common equity / Tangible assets (non-GAAP)
7.57
%
8.03
%
8.33
%
8.34
%
8.77
%
End of period market price per share
$
13.32
$
8.45
$
5.52
$
6.88
$
7.15
End of period shares outstanding
82,455,432
82,334,257
82,254,594
82,058,483
81,800,486
Book value per common share
$
10.41
$
10.54
$
10.29
$
10.06
$
10.13
Tangible book value per share (non-GAAP)
$
9.61
$
9.73
$
9.48
$
9.25
$
9.31
Common Equity Repurchase Program:
Total shares of common stock repurchased
—
—
—
—
1,565,060
Average price paid per share of common stock
$
—
$
—
$
—
$
—
$
8.18
Aggregate repurchases of common stock ($ in millions)
$
—
$
—
$
—
$
—
$
12.8
3 Current quarter information is presented based on estimated data.
9 Annualized.
BOSTON PRIVATE FINANCIAL HOLDINGS, INC.
Consolidated AUM and Balance Sheet - End of Period Balances
Unaudited ($ in thousands)
1Q21
4Q20
3Q20
2Q20
1Q20
ASSETS UNDER MANAGEMENT AND ADVISORY ("AUM"):
Wealth Management and Trust
$
17,002,000
$
16,574,000
$
15,581,000
$
14,889,000
$
13,497,000
Other 2
196,000
526,000
672,000
1,067,000
1,016,000
TOTAL AUM
$
17,198,000
$
17,100,000
$
16,253,000
$
15,956,000
$
14,513,000
AUM Rollforward:
Beginning balance
$
17,100,000
$
16,253,000
$
15,956,000
$
14,513,000
$
16,768,000
Net flows
(408,000)
(396,000)
(407,000)
(40,000)
150,000
Market returns
506,000
1,243,000
704,000
1,483,000
(2,405,000)
Ending balance
$
17,198,000
$
17,100,000
$
16,253,000
$
15,956,000
$
14,513,000
AUM Net Flows:
Wealth Management and Trust
$
(20,000)
$
(128,000)
$
(12,000)
$
60,000
$
176,000
Other 2
(388,000)
(268,000)
(395,000)
(100,000)
(26,000)
TOTAL NET FLOWS
$
(408,000)
$
(396,000)
$
(407,000)
$
(40,000)
$
150,000
DEPOSITS:
Demand deposits (noninterest bearing)
$
2,651,733
$
2,481,676
$
2,346,126
$
2,293,864
$
2,020,440
Savings and NOW
906,892
905,692
756,797
758,656
653,006
Money market
5,106,911
4,699,882
4,187,657
3,753,228
3,468,701
Certificates of deposit
482,082
508,116
537,139
621,649
693,425
TOTAL DEPOSITS
$
9,147,618
$
8,595,366
$
7,827,719
$
7,427,397
$
6,835,572
LOANS:
Commercial and industrial
$
668,217
$
558,343
$
583,145
$
565,748
$
670,744
Paycheck Protection Program
351,170
312,356
371,496
370,034
—
Commercial tax-exempt
488,507
442,159
472,342
419,264
445,319
Commercial real estate
2,697,677
2,757,375
2,659,890
2,676,708
2,626,299
Construction and land
181,482
159,204
211,697
240,211
238,293
Residential
2,632,554
2,677,464
2,729,164
2,859,627
2,841,926
Home equity
71,752
77,364
81,797
84,588
89,350
Consumer and other
124,966
120,044
113,038
116,774
131,407
TOTAL LOANS
$
7,216,325
$
7,104,309
$
7,222,569
$
7,332,954
$
7,043,338
2 Includes results from Dalton, Greiner, Hartman, Maher & Co, LLC ("DGHM")
BOSTON PRIVATE FINANCIAL HOLDINGS, INC.
Provision and Asset Quality
Unaudited ($ in thousands)
1Q21
4Q20
3Q20
2Q20
1Q20
PROVISION:
Provision/(credit) for loan losses
$
(7,004)
$
(2,999)
$
(4,569)
$
22,604
$
16,962
Reserve for unfunded loan commitments 4
(2,016)
(2,386)
1,750
2,829
1,827
TOTAL PROVISION/(CREDIT) FOR CREDIT LOSSES
$
(9,020)
$
(5,385)
$
(2,819)
$
25,433
$
18,789
CHARGE-OFFS:
Loan charge-offs
$
(297)
$
(511)
$
(245)
$
(1,546)
$
(528)
Loan recoveries
73
197
41
55
180
NET (CHARGE-OFFS)/RECOVERIES
$
(224)
$
(314)
$
(204)
$
(1,491)
$
(348)
Net charge-offs to average loans (annualized)
(0.01)
%
(0.02)
%
(0.01)
%
(0.08)
%
(0.02)
%
Net (Charge-offs)/Recoveries by Loan Type:
Commercial and industrial
$
(258)
$
(474)
$
(136)
$
(337)
$
(473)
Commercial real estate
—
160
—
—
—
Residential
3
—
—
—
—
Home equity
—
—
—
(1,157)
132
Consumer and other
31
—
(68)
3
(7)
NET (CHARGE-OFFS)/RECOVERIES
$
(224)
$
(314)
$
(204)
$
(1,491)
$
(348)
LOAN QUALITY DATA:
Special mention loans
$
152,472
$
187,237
$
199,509
$
191,882
$
92,623
Accruing classified loans 10
136,130
106,883
81,827
88,586
87,948
Nonaccrual loans
25,764
23,851
41,263
25,604
24,314
Total classified
161,894
130,734
123,090
114,190
112,262
Criticized and classified loans
$
314,366
$
317,971
$
322,599
$
306,072
$
204,885
Loans 30-89 days past due and accruing 11
$
7,249
$
19,862
$
5,635
$
5,535
$
14,852
4 Total Provision/(credit) for credit losses includes the Provision/(credit) for loan losses and the Reserve for unfunded loan commitments within Other expense. 10 Accruing classified loans include loans that are classified as substandard but are still accruing interest income. Boston Private Bank & Trust Company may classify a loan as substandard where known information about possible credit problems of the related borrowers causes management to have doubts as to the ability of such borrowers to comply with the present repayment terms and which may result in disclosure of such loans as nonaccrual at some time in the future. 11 At June 30, 2020, the Company had one loan totaling less than $0.1 million that was more than 90 days past due but still on accrual status. This loan originated in the New England region. The Company had no other loans outstanding more than 90 days past due but still on accrual status in comparative periods.
BOSTON PRIVATE FINANCIAL HOLDINGS, INC.
Average Balances, Yields, and Rates
Unaudited ($ in thousands)
Average Balance
Interest Income/Expense
Average Yield/Rate
1Q21
4Q20
1Q20
1Q21
4Q20
1Q20
1Q21
4Q20
1Q20
INTEREST-EARNING ASSETS
Cash and investments:
Taxable investment securities
$
203,856
$
209,143
$
201,174
$
782
$
849
$
868
1.54
%
1.62
%
1.73
%
Non-taxable investment securities
322,057
318,291
315,681
2,045
1,973
1,998
2.54
%
2.48
%
2.53
%
Mortgage-backed securities
810,754
598,616
520,629
3,437
2,585
2,787
1.70
%
1.73
%
2.14
%
Short-term investments and other
1,238,677
976,344
147,482
593
687
1,071
0.19
%
0.28
%
2.89
%
Total cash and investments
2,575,344
2,102,394
1,184,966
6,857
6,094
6,724
1.07
%
1.16
%
2.27
%
Loans: 12
Commercial and industrial
1,034,369
1,035,783
1,148,986
8,352
8,504
10,724
3.23
%
3.21
%
3.69
%
Paycheck Protection Program
326,695
348,827
—
3,629
3,798
—
4.44
%
4.26
%
—
%
Commercial real estate
2,723,249
2,711,396
2,582,305
23,187
24,096
27,482
3.41
%
3.48
%
4.21
%
Construction and land
165,350
171,873
233,324
1,605
1,642
2,572
3.88
%
3.74
%
4.36
%
Residential
2,667,440
2,720,733
2,850,833
20,226
21,041
23,468
3.03
%
3.09
%
3.29
%
Home equity
76,336
79,485
86,048
551
676
952
2.93
%
3.38
%
4.45
%
Consumer and other121,900
121,139
132,237
486
500
1,160
1.62
%
1.64
%
3.53
%
Total loans
7,115,339
7,189,236
7,033,733
58,036
60,257
66,358
3.26
%
3.31
%
3.75
%
Total earning assets
9,690,683
9,291,630
8,218,699
64,893
66,351
73,082
2.68
%
2.82
%
3.54
%
LESS: Allowance for loan losses
81,125
84,679
51,730
Cash and due from banks
38,897
38,732
49,571
Other assets
631,970
651,008
562,851
TOTAL AVERAGE ASSETS
$
10,280,425
$
9,896,691
$
8,779,391
INTEREST-BEARING LIABILITIES
Interest-bearing deposits: 13
Savings and NOW
$
877,100
$
793,923
$
638,926
$
180
$
200
$
232
0.08
%
0.10
%
0.15
%
Money market
4,911,146
4,551,046
3,753,045
3,831
4,255
9,657
0.32
%
0.37
%
1.03
%
Certificates of deposit
489,037
522,567
668,818
680
981
2,907
0.56
%
0.75
%
1.75
%
Total interest-bearing deposits 13
6,277,283
5,867,536
5,060,789
4,691
5,436
12,796
0.30
%
0.37
%
1.02
%
Junior subordinated debentures
106,363
106,363
106,363
481
481
917
1.81
%
1.77
%
3.41
%
FHLB borrowings and other
180,234
267,865
455,813
244
1,027
2,112
0.54
%
1.50
%
1.83
%
Total interest-bearing liabilities 13
6,563,880
6,241,764
5,622,965
5,416
6,944
15,825
0.33
%
0.44
%
1.13
%
Noninterest bearing demand deposits 13
2,551,651
2,482,969
2,046,102
Payables and other liabilities
285,453
310,820
270,371
Total average liabilities
9,400,984
9,035,553
7,939,438
Redeemable noncontrolling interests
—
—
1,018
Average shareholders’ equity
879,441
861,138
838,935
TOTAL AVERAGE LIABILITIES, RNCI, AND SHAREHOLDERS’ EQUITY
$
10,280,425
$
9,896,691
$
8,779,391
Net interest income
$
59,477
$
59,407
$
57,257
Interest rate spread
2.35
%
2.38
%
2.41
%
Net interest margin
2.45
%
2.52
%
2.76
%
Average total deposits 13
$
8,828,934
$
8,350,505
$
7,106,891
0.22
%
0.26
%
0.72
%
Average total deposits and borrowings 13
$
9,115,531
$
8,724,733
$
7,669,067
0.24
%
0.32
%
0.83
%
12 Average loans includes Loans held for sale and Nonaccrual loans 13 Average total deposits is the sum of Average total interest-bearing deposits and Average noninterest bearing demand deposits. Average total deposits and borrowings is the sum of Average total interest-bearing liabilities and Average non-interest bearing demand deposits.
BOSTON PRIVATE FINANCIAL HOLDINGS, INC.
Regional Loan Data 14
Unaudited ($ in thousands)
1Q21
4Q20
3Q20
2Q20
1Q20
New England
$
3,735,757
$
3,593,925
$
3,669,746
$
3,781,603
$
3,724,959
Northern California
1,759,812
1,776,682
1,763,556
1,741,255
1,618,668
Southern California
1,720,756
1,733,702
1,789,267
1,810,096
1,699,711
Total loans
$
7,216,325
$
7,104,309
$
7,222,569
$
7,332,954
$
7,043,338
Loans (charged-off)/recovered, net:
New England
$
20
$
162
$
(111)
$
7
$
15
Northern California
9
(147)
—
3
122
Southern California
(253)
(329)
(93)
(1,501)
(485)
Total net loans (charged-off)/recovered
$
(224)
$
(314)
$
(204)
$
(1,491)
$
(348)
Special mention loans:
New England
$
72,359
$
94,235
$
103,060
$
83,026
$
61,741
Northern California
57,751
64,361
63,192
75,609
5,947
Southern California
22,362
28,641
33,257
33,247
24,935
Total special mention loans
$
152,472
$
187,237
$
199,509
$
191,882
$
92,623
Accruing classified loans:
New England
$
106,375
$
89,582
$
74,682
$
53,124
$
50,483
Northern California
13,147
340
4,589
21,712
24,843
Southern California
16,608
16,961
2,556
13,750
12,622
Total accruing classified loans
$
136,130
$
106,883
$
81,827
$
88,586
$
87,948
Nonaccruing loans:
New England
$
14,197
$
12,643
$
11,807
$
11,630
$
11,965
Northern California
6,791
6,331
25,133
9,459
6,575
Southern California
4,776
4,877
4,323
4,515
5,774
Total nonaccruing loans
$
25,764
$
23,851
$
41,263
$
25,604
$
24,314
14 The concentration of the Private Banking loan data and credit quality is primarily based on the location of the lenders' regional offices.
BOSTON PRIVATE FINANCIAL HOLDINGS, INC.
Reconciliations of Non-GAAP Financial Measures
Unaudited ($ in thousands, except share and per share data)
1Q21
4Q20
3Q20
2Q20
1Q20
ROACE AND ROATCE:
Net income/(loss) attributable to the Company (GAAP) (A)
$
10,652
$
24,971
$
22,680
$
(3,298)
$
800
ADD: Amortization of intangibles, net of tax
527
447
564
555
565
Tangible common net income/(loss) (non-GAAP) (B)
$
11,179
$
25,418
$
23,244
$
(2,743)
$
1,365
Total average shareholders’ equity (C)
$
879,441
$
861,138
$
842,606
$
834,882
$
838,935
LESS: Average goodwill and intangibles, net
(66,351)
(66,253)
(66,246)
(66,877)
(67,586)
Average tangible common equity (non-GAAP) (D)
$
813,090
$
794,885
$
776,360
$
768,005
$
771,349
ROACE (annualized) (A/C)
4.91 %
11.50%
10.68%
(1.58)%
0.39%
ROATCE (annualized) (B/D)
5.58 %
12.69%
11.88%
(1.43)%
0.72%
PRE-TAX, PRE-PROVISION INCOME:
Income/(loss) before income taxes (GAAP)
$
16,728
$
31,095
$
24,501
$
(2,457)
$
908
ADD BACK: Provision/(credit) for loan losses
(7,004)
(2,999)
(4,569)
22,604
16,962
Pre-tax, pre-provision income (non-GAAP)
$
9,724
$
28,096
$
19,932
$
20,147
$
17,870
TANGIBLE COMMON EQUITY:
Total shareholders’ equity (GAAP)
$
858,423
$
868,008
$
846,169
$
825,205
$
828,792
LESS: Goodwill and intangibles, net
(65,996)
(66,663)
(66,505)
(66,542)
(67,244)
Tangible common equity (non-GAAP) (A)
$
792,427
$
801,345
$
779,664
$
758,663
$
761,548
Total assets (GAAP)
$
10,538,492
$
10,048,733
$
9,431,305
$
9,158,906
$
8,746,326
LESS: Goodwill and intangibles, net
(65,996)
(66,663)
(66,505)
(66,542)
(67,244)
Tangible assets (non-GAAP) (B)
$
10,472,496
$
9,982,070
$
9,364,800
$
9,092,364
$
8,679,082
End of period shares outstanding (C)
82,455,432
82,334,257
82,254,594
82,058,483
81,800,486
Tangible common equity/ Tangible assets (non-GAAP) (A/B)
7.57 %
8.03%
8.33%
8.34%
8.77%
Tangible book value per share (non-GAAP) (A/C)
$9.61
$9.73
$9.48
$9.25
$9.31
AVERAGE LOANS:
Total loans
$
7,115,339
$
7,189,236
$
7,282,598
$
7,288,644
$
7,033,733
LESS: PPP
(326,695)
(348,827)
(373,047)
(283,619)
—
Total loans, excluding PPP (non-GAAP)
$
6,788,644
$
6,840,409
$
6,909,551
$
7,005,025
$
7,033,733
Total loan yields, excluding PPP (non-GAAP)
3.21 %
3.26%
3.27%
3.47%
3.75%
BOSTON PRIVATE FINANCIAL HOLDINGS, INC.
Reconciliations of Non-GAAP Financial Measures
Unaudited ($ in thousands, except share and per share data)
1Q21
4Q20
3Q20
2Q20
1Q20
RETURN ON AVERAGE ASSETS:
Net income/(loss) attributable to the Company (GAAP) (A)
$
10,652
$
24,971
$
22,680
$
(3,298)
$
800
Average assets (non-GAAP) (B)
10,280,425
9,896,691
9,346,563
9,109,201
8,779,391
Return on average assets (annualized) (non-GAAP) (A/B)
0.42 %
1.00%
0.96%
(0.15)%
0.04%
EFFICIENCY RATIO:
Total noninterest expense (GAAP) (A)
$
75,923
$
57,967
$
60,937
$
61,453
$
60,908
LESS: Amortization of intangibles
667
566
714
702
715
Total noninterest expense, excluding Amortization of intangibles (non-GAAP) (B)
$
75,256
$
57,401
$
60,223
$
60,751
$
60,193
Net interest income (GAAP)
$
59,477
$
59,407
$
57,824
$
58,938
$
57,257
Total core fees and income (GAAP)
22,783
25,211
21,959
21,630
22,886
Total other income (GAAP)
3,387
1,445
1,086
1,032
(1,365)
Total revenue (GAAP) (C)
$
85,647
$
86,063
$
80,869
$
81,600
$
78,778
Efficiency ratio (GAAP) (A/C)
88.6 %
67.4%
75.4%
75.3%
77.3%
Efficiency ratio, excluding Amortization of intangibles (non-GAAP) (B/C)
87.9 %
66.7%
74.5%
74.4%
76.4%
NET INCOME/(LOSS) ATTRIBUTABLE TO THE COMPANY:
Net income/(loss) attributable to the Company (GAAP)
$
10,652
$
24,971
$
22,680
$
(3,298)
$
800
LESS: Gain on fair value of contingent considerations receivable 15
—
—
891
—
—
Tax effect at statutory rate
—
—
258
—
—
Net income/(loss) attributable to the Company (non-GAAP)
$
10,652
$
24,971
$
22,047
$
(3,298)
$
800
NET INCOME/(LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS:
Net income/(loss) attributable to common shareholders (GAAP)
$
10,652
$
24,971
$
22,680
$
(3,298)
$
1,214
LESS: Gain on fair value of contingent considerations receivable 15
—
—
891
—
—
Tax effect at statutory rate
—
—
258
—
—
Net income/(loss) attributable to the common shareholders, treasury stock method, excluding notable items (non-GAAP)
$
10,652
$
24,971
$
22,047
$
(3,298)
$
1,214
Weighted average diluted shares outstanding
83,934,107
82,764,339
82,362,338
81,929,752
83,318,041
Diluted earnings/(loss) per share (GAAP)
$
0.13
$
0.30
$
0.28
$
(0.04)
$
0.01
Diluted earnings/(loss) per share, excluding notable items (non-GAAP)
$
0.13
$
0.30
$
0.27
$
(0.04)
$
0.01
Average common equity (non-GAAP)
$
879,441
$
861,138
$
842,606
$
834,882
$
838,935
Average tangible common equity (non-GAAP)
$
813,090
$
794,885
$
776,360
$
768,005
$
771,349
ROACE, excluding notable items (non-GAAP)
4.91 %
11.50%
10.38%
(1.58)%
0.39%
ROATCE, excluding notable items (non-GAAP)
5.58 %
12.69%
11.55%
(1.43)%
0.72%
Pre-tax, pre-provision income (non-GAAP)
$
9,724
$
28,096
$
19,932
$
20,147
$
17,870
LESS: Gain on fair value of contingent considerations receivable 15
—
—
891
—
—
Pre-tax, pre-provision income, excluding notable items (non-GAAP)
$
9,724
$
28,096
$
19,041
$
20,147
$
17,870
15 In the third quarter of 2020, there was a gain of $0.9 million related to the revaluation of a receivable from the divestiture of a former affiliate, Bingham, Osborn & Scarborough, LLC ("BOS").
View source version on businesswire.com: https://www.businesswire.com/news/home/20210422006045/en/
Adam Bromley (617) 912-4386 abromley@bostonprivate.com
1 Year Boston Private Financial Chart |
1 Month Boston Private Financial Chart |
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