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| 8-K - BOSTON PRIVATE FINANCIAL HOLDINGS INC | a8kearnings2011q1.htm |
Exhibit 99.1
Boston Private Financial Holdings Reports First Quarter 2011 Results
Boston, MA - April 26, 2011 - Boston Private Financial Holdings, Inc. (NASDAQ: BPFH) (the “Company” or “BPFH”) today reported a first quarter 2011 GAAP Net Loss Attributable to the Common Shareholder of $425 thousand, compared to a $10.3 million net loss in the fourth quarter of 2010. BPFH reported a first quarter 2011 GAAP net loss per share of $0.01 compared to a $0.14 GAAP net loss per share in the fourth quarter of 2010.
“We continued to see encouraging progress in the first quarter from our ongoing efforts to manage credit, work down problem assets, and reduce the risk profile of our loan book,” said CEO and President Clay Deutsch. “Our overall problem loans declined, our key capital ratios strengthened, and we reported a substantially lower loan loss provision of $13.4 million, 60% below each of the prior two quarters.
“While we continued to improve our risk profile, our core business reflected growth in our client-centered Private Banking and Wealth Management businesses. Loan balances were flat as we deliberately decreased the commercial real estate and construction exposure, but residential mortgage and commercial and industrial balances remained strong at an annualized growth rate of 9%. We continued to expand our core client base. We also received stronger contribution from our Wealth Management businesses.
“Finally,” Mr. Deutsch concluded, “we were extremely pleased that we received the necessary regulatory approval of our previously announced bank integration within 60 days of filing our applications, as previously reported. The process of bringing our banks together into a single, high performing Private Bank is well underway, and we are hitting all of our merger integration milestones at or ahead of schedule.”
Key Financials (Note: All comparisons relate only to continuing operations).
• | Revenue for the first quarter was $73.8 million, a decrease of $2.6 million, or 3%, from $76.4 million on a linked quarter basis. Revenues were up 3% from $71.7 million compared to the same period in 2010. |
◦ | Net Interest Income for the first quarter was $43.7 million, a decrease of $1.2 million, or 3%, from $45 million on a linked quarter basis. Net Interest Income was down 1% from $44.3 million compared to the same period in 2010. |
◦ | Fee Income (Investment Management, Wealth Advisory and Other Private Banking Fees) for the first quarter was $27.4 million, an increase of $0.7 million, or 2%, from $26.7 million on linked quarter basis. Fee Income was up 8% from $25.4 million compared to the same period in 2010. |
• | Net Interest Margin for the first quarter was 3.18%, flat on both a linked quarter basis and compared to the same period in 2010. |
• | Operating Expenses for the first quarter were $61.7 million, a decrease of $1.5 million, or 2%, from $63.2 million on a linked quarter basis. Operating Expenses were up 10% from $56 million in the same period in 2010. |
• | Tangible Common Equity/Tangible Assets (“TCE/TA”) at the end of the first quarter was 6.62%, up 28 basis points from 6.34% as of the end of the fourth quarter, and up 30 basis points from 6.32% compared to the same period in 2010. |
• | Total Balance Sheet Assets as of the end of the first quarter were $6.1 billion, a decrease of $171 million, or 3%, from $6.2 billion as of the end of the fourth quarter and down 1% from $6.0 billion as of the end of the same period in 2010. |
• | Provision for Loan Losses for the first quarter was $13.4 million, a decrease of $19.2 million, or 59%, from $32.6 million on a linked quarter basis, and up 75% from $7.6 million for the same period in 2010. |
• | Allowance for Loan Losses as a percentage of Total Loans as of the end of the first quarter was 2.25%, up 5 basis points from 2.20% as of the end of the fourth quarter, and up 57 basis points from 1.68% compared to the same period in 2010. |
“Our first quarter Operating Expenses included $2 million of restructuring charges due to our bank integration,” said David Kaye, Chief Financial Officer. “These charges account for 30% of the $6.5 million we expect to realize for integration costs between now and the first quarter of 2012.”
Total Loans were flat at $4.5 billion on a linked quarter basis, and were up 2% from $4.4 billion compared to the same period in 2010. Total Deposits increased 1% on both a linked quarter basis and compared to the same period in 2010 at $4.5 billion.
Non-Performing Loans as a percentage of Total Loans was 2.50% as of the end of the first quarter, up from 2.39% as of the end of the fourth quarter of 2010. Net Charge-offs for the first quarter 2011 were $11.5 million, which represented approximately 26 basis points of Total Loans, compared to $34.2 million of Net Charge-offs during the fourth quarter 2010, or 76 basis points of Total Loans. Past Due Loans (30-89 days) as a percentage of Total Loans increased 28 basis points on a linked quarter basis to 83 basis points.
Total Assets Under Management/Advisory (“AUM”) increased 1%, or $623 million, to $20.2 billion in the first quarter. Total AUM was up 10% compared to the same period in 2010. The Company experienced first quarter net AUM inflows of $36 million, as compared to $69 million of net inflows in the prior quarter.
Dividend Payments
Concurrent with the release of the first quarter 2011 earnings, the Board of Directors of the Company declared a cash dividend to shareholders of $0.01 per share. The record date for this dividend is May 16, 2011 and the payment date is May 30, 2011.
Non-GAAP Financial Measures
The Company uses certain non-GAAP financial measures, such as the TCE/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. 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 8:00 a.m. Eastern Time on Wednesday, April 27, 2011 to discuss the financial results in more detail. To access the call:
Dial In #: (866) 843-0890
International Dial In #: (412) 317-9250
Elite Entry Number: 0128082
Replay Information:
Available from Apr. 27 at 10 a.m. to May 5
Dial In #: (877) 344-7529
International Dial In #: (412) 317-0088
Conference Number: 450199
Boston Private Financial Holdings, Inc.
Boston Private Financial Holdings, Inc. (NASDAQ: BPFH) is a national financial services organization comprised of affiliates located in key regions of the U.S. that offer private banking, wealth advisory and investment management services to the high net worth marketplace, selected businesses and institutions. The Company enters demographically attractive markets through selective acquisitions and then expands by way of organic growth. Its business strategy is to empower its affiliates to serve their clients at the local level, while at the same time providing strategic oversight and access to resources, both financial and intellectual, to support management, compliance and risk management, legal, marketing, and operations.
For more information about BPFH, visit the Company's website at www.bostonprivate.com.
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 locally operated and wholly-owned subsidiary of BPFH. The information reported in this press release is related to the performance and results of BPFH.
###
CONTACT:
Jeanne Hess
Assistant Vice President, Investor Relations
Boston Private Financial Holdings, Inc.
(617) 912-3798
jhess@bostonprivate.com
John Hartz
Sloane & Company
857-598-4779
jhartz@sloanepr.com
Statements in this press release that are not historical facts are 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, changes in assumptions or unanticipated factors adversely affecting the timing, among other matters, of expenses or cost savings relating to or resulting from the consolidation of the Company's banking subsidiaries; 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 a continuing deterioration in general economic conditions on a national basis or in the local markets in which the Company operates, including changes which adversely affect borrowers' ability to service and repay our loans; changes in loan defaults and charge-off rates; changes in the value of securities and other assets, adequacy of loan loss reserves, or deposit levels necessitating increased borrowing to fund loans and investments; increasing government regulation, such as the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010; the risk that goodwill and intangibles recorded in the Company's financial statements will become impaired; risks related to the identification and implementation of acquisitions; 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. 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.
Selected Financial Data
(In Thousands, except share data)
(Unaudited)
(In thousands, except per share data) | March 31, 2011 | March 31, 2010 | December 31, 2010 | ||||||
FINANCIAL DATA: | |||||||||
Total Balance Sheet Assets | $ | 5,982,309 | $ | 6,034,392 | $ | 6,152,901 | |||
Total Equity | 522,111 | 610,180 | 518,878 | ||||||
Cash and Investment Securities | 1,196,316 | 1,327,776 | 1,338,238 | ||||||
Commercial and Industrial Loans | 668,402 | 583,086 | 658,147 | ||||||
Commercial Real Estate Loans | 1,649,487 | 1,646,993 | 1,698,086 | ||||||
Construction and Land Loans | 126,408 | 295,831 | 150,702 | ||||||
Residential Mortgage Loans | 1,714,530 | 1,541,629 | 1,673,934 | ||||||
Home Equity Loans | 155,217 | 160,257 | 158,430 | ||||||
Other Consumer Loans | 142,855 | 131,183 | 141,048 | ||||||
Total Loans | 4,456,899 | 4,358,979 | 4,480,347 | ||||||
Loans Held for Sale | 2,833 | 9,592 | 9,145 | ||||||
Other Real Estate Owned ("OREO") | 11,497 | 16,238 | 12,925 | ||||||
Deposits | 4,540,190 | 4,478,795 | 4,486,726 | ||||||
Borrowings | 815,737 | 836,240 | 1,027,925 | ||||||
Book Value Per Common Share | $ | 6.03 | $ | 6.54 | $ | 6.04 | |||
Market Price Per Share | $ | 7.07 | $ | 7.37 | $ | 6.55 | |||
ASSETS UNDER MANAGEMENT AND ADVISORY: | |||||||||
Private Banking | $ | 3,670,000 | $ | 3,582,000 | $ | 3,592,000 | |||
Investment Managers | 8,437,000 | 7,329,000 | 8,140,000 | ||||||
Wealth Advisory | 8,085,000 | 7,445,000 | 7,836,000 | ||||||
Less: Inter-company Relationship | (20,000 | ) | (18,000 | ) | (19,000 | ) | |||
Assets Under Management and Advisory | $ | 20,172,000 | $ | 18,338,000 | $ | 19,549,000 | |||
FINANCIAL RATIOS: | |||||||||
Total Equity/Total Assets | 8.73 | % | 10.11 | % | 8.43 | % | |||
Tangible Common Equity/Tangible Assets (2) | 6.62 | % | 6.32 | % | 6.34 | % | |||
Allowance for Loan Losses/Total Loans | 2.25 | % | 1.68 | % | 2.20 | % | |||
Allowance for Loan Losses/Non-Accrual Loans | 90 | % | 86 | % | 93 | % | |||
Boston Private Financial Holdings, Inc.
Selected Financial Data
(In Thousands, except share data)
(Unaudited)
Three Months Ended | ||||||||||
March 31, | March 31, | Dec 31, | ||||||||
OPERATING RESULTS: | 2011 | 2010 | 2010 | |||||||
Net Interest Income | $ | 43,711 | $ | 44,311 | $ | 44,953 | ||||
Investment Management and Trust Fees: | ||||||||||
Private Banking | 5,863 | 5,716 | 5,744 | |||||||
Investment Managers | 10,118 | 9,159 | 9,682 | |||||||
Total Investment Management and Trust Fees | 15,981 | 14,875 | 15,426 | |||||||
Total Wealth Advisory Fees | 10,072 | 9,257 | 9,787 | |||||||
Other Private Banking Fees | 1,335 | 1,271 | 1,513 | |||||||
Total Fees | 27,388 | 25,403 | 26,726 | |||||||
Gain/(Loss) on Sale of Loans, net | 385 | 457 | 3,578 | |||||||
Other Revenue, Gains and (Losses), net (3) | 2,321 | 1,568 | 1,108 | |||||||
Total Fees and Other Income | 30,094 | 27,428 | 31,412 | |||||||
Total Revenue | 73,805 | 71,739 | 76,365 | |||||||
Provision for Loan Losses | 13,350 | 7,615 | 32,551 | |||||||
Salaries and Employee Benefits | 36,772 | 33,849 | 36,084 | |||||||
Occupancy and Equipment | 7,343 | 6,786 | 7,254 | |||||||
Professional Services | 5,184 | 4,844 | 5,470 | |||||||
FDIC Insurance | 2,236 | 2,087 | 2,113 | |||||||
Restructuring | 1,982 | — | — | |||||||
Other Operating Expenses (4) | 8,188 | 8,466 | 12,256 | |||||||
Total Operating Expense | 61,705 | 56,032 | 63,177 | |||||||
Income/(Loss) from Continuing Operations, before Tax | (1,250 | ) | 8,092 | (19,363 | ) | |||||
Income Tax Expense/(Benefit) | (178 | ) | 2,337 | (8,172 | ) | |||||
Discontinued Operations, Net of Tax (1) | 1,670 | 36 | 1,917 | |||||||
Less: Net Income Attributable to the Noncontrolling Interest | 747 | 685 | 684 | |||||||
Net Income/(Loss) Attributable to the Company | $ | (149 | ) | $ | 5,106 | $ | (9,958 | ) | ||
Boston Private Financial Holdings, Inc.
Selected Financial Data
(In Thousands, except share data)
(Unaudited)
Three Months Ended | ||||||||||
March 31, | March 31, | Dec 31, | ||||||||
PER SHARE DATA: | 2011 | 2010 | 2010 | |||||||
Calculation of Income/(Loss) for EPS: | ||||||||||
Net Income/(Loss) from Continuing Operations | $ | (1,072 | ) | $ | 5,755 | $ | (11,191 | ) | ||
Less: Net Income Attributable to Noncontrolling Interests | 747 | 685 | 684 | |||||||
Net Income/(Loss) from Continuing Operations Attributable to the Company | $ | (1,819 | ) | $ | 5,070 | $ | (11,875 | ) | ||
Adjustments to Net Income/(Loss) Attributable to the Company to Arrive at Net Income/(Loss) Attributable to Common Shareholders (5) | (276 | ) | (3,468 | ) | (300 | ) | ||||
Net Income/(Loss) from Continuing Operations Attributable to the Common Shareholders | $ | (2,095 | ) | $ | 1,602 | $ | (12,175 | ) | ||
Net Income/(Loss) from Discontinued Operations | $ | 1,670 | $ | 36 | $ | 1,917 | ||||
Net Income/(Loss) Attributable to the Common Shareholder | $ | (425 | ) | $ | 1,638 | $ | (10,258 | ) | ||
Dividends Paid on Series B Preferred Stock for Diluted EPS | — | 73 | — | |||||||
Calculation of Average Shares Outstanding: | ||||||||||
Weighted Average Basic and Diluted Shares | 74,671 | 67,870 | 74,371 | |||||||
Weighted Average Diluted | 74,671 | 76,474 | 74,371 | |||||||
Earnings/(Loss) per Share - Basic and Diluted | ||||||||||
Earnings/(Loss) per Share from Continuing Operations | $ | (0.03 | ) | $ | 0.02 | $ | (0.16 | ) | ||
Income/(Loss) per Share from Discontinued Operations | $ | 0.02 | $ | — | $ | 0.02 | ||||
Earnings/(Loss) per Share | $ | (0.01 | ) | $ | 0.02 | $ | (0.14 | ) | ||
Boston Private Financial Holdings, Inc.
Selected Financial Data
(In Thousands, except share data) (Unaudited)
Average Balance | Interest Income/Expense | Average Yeild/Rate | ||||||||||||||||||||||
Three Months Ended | Three Months Ended | Three Months Ended | ||||||||||||||||||||||
March 31, | March 31, | Dec 31, | March 31, | March 31, | Dec 31, | March 31, | March 31, | Dec 31, | ||||||||||||||||
AVERAGE BALANCE SHEET: | 2011 | 2010 | 2010 | 2011 | 2010 | 2010 | 2011 | 2010 | 2010 | |||||||||||||||
AVERAGE ASSETS | ||||||||||||||||||||||||
Earning Assets | ||||||||||||||||||||||||
Cash and Investments (6) | $ | 1,331,795 | $ | 1,430,142 | $ | 1,303,356 | $ | 5,160 | $ | 6,420 | $ | 5,518 | 1.55 | % | 1.80 | % | 1.69 | % | ||||||
Loans (7) | ||||||||||||||||||||||||
Commercial and Construction (6) | 2,446,178 | 2,592,771 | 2,568,964 | 32,316 | 37,587 | 34,920 | 5.32 | % | 5.76 | % | 5.35 | % | ||||||||||||
Residential Mortgage | 1,685,001 | 1,511,547 | 1,660,775 | 18,729 | 18,886 | 19,183 | 4.45 | % | 5.00 | % | 4.61 | % | ||||||||||||
Home Equity and Other Consumer | 296,259 | 220,852 | 300,273 | 2,867 | 2,459 | 3,064 | 3.90 | % | 4.48 | % | 4.02 | % | ||||||||||||
Total Earning Assets | 5,759,233 | 5,755,312 | 5,833,368 | 59,072 | 65,352 | 62,685 | 4.12 | % | 4.52 | % | 4.25 | % | ||||||||||||
Allowance for Loan Losses | 99,667 | 69,760 | 99,025 | |||||||||||||||||||||
Cash and due From Banks (Non-Interest Bearing) | 33,565 | 12,338 | 32,516 | |||||||||||||||||||||
Other Assets | 454,922 | 503,447 | 441,632 | |||||||||||||||||||||
TOTAL AVERAGE ASSETS | $ | 6,148,053 | $ | 6,201,337 | $ | 6,208,491 | ||||||||||||||||||
AVERAGE LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||||||
Interest-Bearing Liabilities: | ||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Savings and NOW | $ | 542,011 | $ | 517,584 | $ | 608,474 | 375 | $ | 592 | $ | 454 | 0.28 | % | 0.46 | % | 0.30 | % | |||||||
Money Market | 1,858,645 | 1,646,046 | 1,814,159 | 2,814 | 3,921 | 3,718 | 0.61 | % | 0.97 | % | 0.81 | % | ||||||||||||
Certificates of Deposits | 1,084,494 | 1,419,511 | 1,183,250 | 3,461 | 6,116 | 3,877 | 1.29 | % | 1.75 | % | 1.30 | % | ||||||||||||
Total Deposits | 3,485,150 | 3,583,141 | 3,605,883 | 6,650 | 10,629 | 8,049 | 0.77 | % | 1.20 | % | 0.89 | % | ||||||||||||
Junior Subordinated Debentures | 193,645 | 193,645 | 193,645 | 1,892 | 2,490 | 2,523 | 3.91 | % | 5.14 | % | 5.21 | % | ||||||||||||
FHLB Borrowings and Other | 698,034 | 676,331 | 685,208 | 4,913 | 6,140 | 5,293 | 2.82 | % | 3.63 | % | 3.02 | % | ||||||||||||
Total Interest-Bearing Liabilities | 4,376,829 | 4,453,117 | 4,484,736 | 13,455 | 19,259 | 15,865 | 1.24 | % | 1.74 | % | 1.40 | % | ||||||||||||
Non-interest Bearing Demand Deposits | 1,117,347 | 1,010,766 | 1,063,592 | |||||||||||||||||||||
Payables and Other Liabilities | 114,203 | 87,795 | 112,406 | |||||||||||||||||||||
Total Liabilities | 5,608,379 | 5,551,678 | 5,660,734 | |||||||||||||||||||||
Redeemable Non-Controlling Interest | 19,891 | 30,281 | 19,070 | |||||||||||||||||||||
Stockholders' Equity | 519,783 | 619,378 | 528,687 | |||||||||||||||||||||
TOTAL AVERAGE LIABILITIES & STOCKHOLDERS' EQUITY | $ | 6,148,053 | $ | 6,201,337 | $ | 6,208,491 | ||||||||||||||||||
Net Interest Income - on a Fully Taxable Equivalent Basis (FTE) | $ | 45,617 | $ | 46,093 | $ | 46,820 | ||||||||||||||||||
FTE Adjustment (6) | 1,906 | 1,782 | 1,867 | |||||||||||||||||||||
Net Interest Income (GAAP Basis) | $ | 43,711 | $ | 44,311 | $ | 44,953 | ||||||||||||||||||
Interest Rate Spread | 2.88 | % | 2.78 | % | 2.85 | % | ||||||||||||||||||
Net Interest Margin | 3.18 | % | 3.18 | % | 3.18 | % | ||||||||||||||||||
OPERATING RATIOS: | ||||||||||||||||||||||||
Return on Average Equity | (0.11%) | 3.30 | % | (7.53%) | ||||||||||||||||||||
Return on Average Assets | (0.01%) | 0.33 | % | (0.64%) | ||||||||||||||||||||
Boston Private Financial Holdings, Inc.
Selected Financial Data
(In Thousands, except share data) (Unaudited)
LOAN DATA AND CREDIT QUALITY (8): | March 31, | March, 31 | Dec 31, | ||||||
2011 | 2010 | 2010 | |||||||
Commercial and Industrial Loans: | |||||||||
New England | $ | 513,875 | $ | 409,851 | $ | 500,745 | |||
Northern California | 60,884 | 81,366 | 61,613 | ||||||
Southern California | 54,284 | 50,193 | 53,447 | ||||||
Pacific Northwest | 39,508 | 42,092 | 42,522 | ||||||
Eliminations and other, net | (149 | ) | (416 | ) | (180 | ) | |||
Total Commercial and Industrial Loans | $ | 668,402 | $ | 583,086 | $ | 658,147 | |||
Commercial Real Estate Loans | |||||||||
New England | $ | 644,092 | $ | 552,401 | $ | 624,924 | |||
Northern California | 728,040 | 857,126 | 797,460 | ||||||
Southern California | 179,996 | 176,749 | 181,479 | ||||||
Pacific Northwest | 97,359 | 60,717 | 94,223 | ||||||
Total Commercial Real Estate Loans | $ | 1,649,487 | $ | 1,646,993 | $ | 1,698,086 | |||
Construction and Land Loans: | |||||||||
New England | $ | 71,623 | $ | 112,099 | $ | 80,021 | |||
Northern California | 40,245 | 150,884 | 55,284 | ||||||
Southern California | 2,441 | 7,177 | 1,840 | ||||||
Pacific Northwest | 12,099 | 25,671 | 13,557 | ||||||
Total Construction and Land Loans | $ | 126,408 | $ | 295,831 | $ | 150,702 | |||
Residential Mortgage Loans: | |||||||||
New England | $ | 1,196,954 | $ | 1,126,290 | $ | 1,181,399 | |||
Northern California | 305,567 | 228,143 | 293,622 | ||||||
Southern California | 161,469 | 142,247 | 153,102 | ||||||
Pacific Northwest | 50,540 | 44,949 | 45,811 | ||||||
Total Residential Mortgage Loans | $ | 1,714,530 | $ | 1,541,629 | $ | 1,673,934 | |||
Home Equity Loans: | |||||||||
New England | $ | 91,573 | $ | 96,227 | $ | 95,195 | |||
Northern California | 54,182 | 53,796 | 52,854 | ||||||
Southern California | 4,308 | 5,832 | 4,412 | ||||||
Pacific Northwest | 5,154 | 4,402 | 5,969 | ||||||
Total Home Equity Loans | $ | 155,217 | $ | 160,257 | $ | 158,430 | |||
Other Consumer Loans: | |||||||||
New England | $ | 110,242 | $ | 86,378 | $ | 104,259 | |||
Northern California | 17,274 | 27,239 | 20,317 | ||||||
Southern California | 12,259 | 12,969 | 13,242 | ||||||
Pacific Northwest | 1,069 | 1,357 | 1,130 | ||||||
Eliminations and other, net | 2,011 | 3,240 | 2,100 | ||||||
Total Other Consumer Loans | $ | 142,855 | $ | 131,183 | $ | 141,048 | |||
Total Loans | |||||||||
New England | $ | 2,628,359 | $ | 2,383,246 | $ | 2,586,543 | |||
Northern California | 1,206,192 | 1,398,554 | 1,281,150 | ||||||
Southern California | 414,757 | 395,167 | 407,522 | ||||||
Pacific Northwest | 205,729 | 179,188 | 203,212 | ||||||
Eliminations and other, net | 1,862 | 2,824 | 1,920 | ||||||
Total Loans | $ | 4,456,899 | $ | 4,358,979 | $ | 4,480,347 | |||
Boston Private Financial Holdings, Inc.
Selected Financial Data
(In Thousands, except share data) (Unaudited)
March 31, | March 31, | Dec 31, | |||||||
2011 | 2010 | 2010 | |||||||
Allowance for Loan Losses: | |||||||||
New England | $ | 33,864 | $ | 28,125 | $ | 32,938 | |||
Northern California | 45,628 | 23,986 | 46,117 | ||||||
Southern California | 14,311 | 12,504 | 12,375 | ||||||
Pacific Northwest | 6,479 | 8,647 | 6,973 | ||||||
Total Allowance for Loan Losses | $ | 100,282 | $ | 73,262 | $ | 98,403 | |||
Special Mention Loans: | |||||||||
New England | $ | 56,737 | $ | 38,463 | $ | 70,114 | |||
Northern California | 36,779 | 32,700 | 74,991 | ||||||
Southern California | 14,778 | 12,696 | 22,691 | ||||||
Pacific Northwest | 15,369 | 19,360 | 19,819 | ||||||
Total Special Mention Loans | $ | 123,663 | $ | 103,219 | $ | 187,615 | |||
Accruing Classified Loans (9): | |||||||||
New England | $ | 25,422 | $ | 20,845 | $ | 19,745 | |||
Northern California | 71,358 | 14,234 | 62,518 | ||||||
Southern California | 20,045 | 14,145 | 6,802 | ||||||
Pacific Northwest | 8,921 | 13,537 | 8,373 | ||||||
Total Accruing Classified Loans | $ | 125,746 | $ | 62,761 | $ | 97,438 | |||
Non-accrual Loans: | |||||||||
New England | $ | 23,314 | $ | 10,174 | $ | 25,172 | |||
Northern California | 66,694 | 41,570 | 60,373 | ||||||
Southern California (10) | 10,818 | 19,356 | 10,663 | ||||||
Pacific Northwest | 10,410 | 16,979 | 10,783 | ||||||
Total Non-accrual Loans | $ | 111,236 | $ | 88,079 | $ | 106,991 | |||
Other Real Estate Owned: | |||||||||
New England | $ | 1,400 | $ | 1,050 | $ | — | |||
Northern California | 7,301 | 8,482 | 10,207 | ||||||
Southern California | 1,128 | 3,454 | 1,128 | ||||||
Pacific Northwest | 1,668 | 3,252 | 1,590 | ||||||
Total Other Real Estate Owned | $ | 11,497 | $ | 16,238 | $ | 12,925 | |||
Loans 30-89 Days Past Due and Accruing: | |||||||||
New England | $ | 9,890 | $ | 14,939 | $ | 12,844 | |||
Northern California | 26,043 | — | 11,219 | ||||||
Southern California | 1,206 | 4,645 | 682 | ||||||
Pacific Northwest | — | 7 | — | ||||||
Total Loans 30-89 Days Past Due and Accruing | $ | 37,139 | $ | 19,591 | $ | 24,745 | |||
Loans Charged-off/(Recovered), Net for the Three Months Ended: | |||||||||
New England | $ | 1,274 | $ | 1,038 | $ | 510 | |||
Northern California | 11,289 | 1,789 | 33,957 | ||||||
Southern California | (1,086 | ) | (855 | ) | (118 | ) | |||
Pacific Northwest | (6 | ) | 825 | (191 | ) | ||||
Total Net Loans Charged-off | $ | 11,471 | $ | 2,797 | $ | 34,158 | |||
Boston Private Financial Holdings, Inc.
Selected Financial Data
(In Thousands, except share data)
(Unaudited)
(1) In 2009, the Company completed the sale of its affiliates Boston Private Value Investors, Sand Hill Advisors, RINET, Gibraltar, and Westfield Capital Management. Accordingly, prior period and current financial information related to the divested companies are included with discontinued operations.
(2) The Company uses certain non-GAAP financial measures, such as the Tangible Common Equity to Tangible Assets 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.
A reconciliation from the Company's GAAP Total Equity to Total Assets ratio to the Non-GAAP Tangible Common Equity to Tangible Assets ratio is 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: the equity from the TARP funding, Goodwill and Intangible Assets, net and includes the difference between Redemption Value and value per ARB 51 for Redeemable Non-controlling Interests.
March 31, | March 31, | Dec 31, | |||||||
2011 | 2010 | 2011 | |||||||
Total Balance Sheet Assets | $ | 5,982,309 | $ | 6,034,392 | $ | 6,152,901 | |||
LESS: Goodwill and Intangible Assets, net | (149,388 | ) | (148,788 | ) | (151,212 | ) | |||
Tangible Assets (non-GAAP) | 5,832,921 | 5,885,604 | 6,001,689 | ||||||
Total Equity | 522,111 | 610,180 | 518,878 | ||||||
LESS: Goodwill and Intangible Assets, net | (149,388 | ) | (148,788 | ) | (151,212 | ) | |||
TARP Funding | — | (104,000 | ) | — | |||||
ADD: Difference between Redemption Value of Non-controlling Interests and value under ARB 51 | 13,259 | 14,490 | 12,578 | ||||||
Total adjusting items | (136,129 | ) | (238,298 | ) | (138,634 | ) | |||
Tangible Common Equity (non-GAAP) | 385,982 | 371,882 | 380,244 | ||||||
Total Equity/Total Assets | 8.73 | % | 10.11 | % | 8.43 | % | |||
Tangible Common Equity/Tangible Assets (non-GAAP) | 6.62 | % | 6.32 | % | 6.34 | % | |||
(3) Other Revenue, Gains and (Losses), net, as presented in these tables include Gain on Sale of Investments, net; Gain on Sale of Oreo, net; and Other Miscellaneous Revenue.
(4) Other Operating Expenses, as presented in these tables, include expenses related to Marketing and Business Development, Contract Services and Processing, Impairment Expense and Amortization of Intangibles.
Boston Private Financial Holdings, Inc.
Selected Financial Data (1)
(In Thousands, except share data)
(Unaudited)
(5) Adjustments to Net Income Attributable to the Company to arrive at Net Income/(Loss) Attributable to the Common Shareholders, as presented in these tables, include decrease/ (increase) in Noncontrolling Interests Redemption Value; Dividends on Preferred Securities; Accretion of Discount on Series C Preferred Stock; and Accretion of Series B Preferred Stock Beneficial Conversion Feature.
(6) Interest Income on Non-taxable Investments and Loans are presented on an FTE basis using the federal statutory rate.
(7) Includes Loans Held for Sale and Non-accrual Loans.
(8) The concentration of the Private Banking loan data and credit quality is based on the location of the lender. Net loans from the Holding 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”.
(9) Accruing classified loans include loans that are classified as substandard but are still accruing interest income. The Banks 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 nonperforming at some time in the future.
(10) Includes the non-strategic loans held for sale of $3.1 million, $1.5 million, at March 31, 2010, Dec 31, 2010, respectively. There were no non-strategic loans held for sale at March 31, 2011.