Exhibit 99.1
Boston Private Financial Holdings, Inc. Reports Fourth Quarter and Full Year 2012 Results; Announces Dividend Increase and Share Repurchase Program
Fourth Quarter and Full Year Highlights:
• | Earnings increase 36% year-over-year: Full year 2012 GAAP Net Income increased to $53.3 million from $39.1 million in 2011. Full year diluted 2012 EPS increased to $0.61 from $0.46 in 2011. |
• | Steady Net Interest Income: Net Interest Income increased 2% to $183.3 million for the full year of 2012. Full year NIM of 3.22% decreased 3 basis points year-over-year. |
• | Core Fees and Income increase for the fourth straight quarter: Fourth quarter Core Fees and Income increased 13% year-over-year and 5% on a linked quarter basis. AUM increased 2% to $20.4 billion in the quarter, and 13% year-over-year. Fourth quarter AUM net inflows were $298 million, up from $223 million linked quarter, and up from AUM net outflows of ($142) million in the fourth quarter of 2011. |
• | Provision decreases: Provision for Loan Losses was a credit of ($5.0) million in the quarter, compared to a provision credit of ($4.0) million in the third quarter of 2012. |
• | Capital builds: Tangible Common Equity/Tangible Assets ratio increased by 30 basis points to 7.7% on a year-over-year basis, and was flat on a linked quarter basis. |
• | Dividend increase and share repurchase program announced: The Board of Directors approved a cash dividend of $0.05 per share, up from $0.01 per share last quarter, and a share repurchase program of up to 5% of the Company's outstanding shares as of January 16, 2013. |
Boston, MA - January 16, 2013 - Boston Private Financial Holdings, Inc. (NASDAQ: BPFH) (the “Company” or “BPFH”) today reported fourth quarter 2012 GAAP Net Income Attributable to the Company of $13.1 million, compared to $16.5 million in the third quarter of 2012. BPFH reported fourth quarter diluted earnings per share of $0.15 compared to $0.19 in the third quarter of 2012.
For the full year of 2012, BPFH reported GAAP Net Income Attributable to the Company of $53.3 million, compared to $39.1 million for the full year of 2011. BPFH reported diluted earnings per share of $0.61 compared to $0.46 for the full year of 2011.
“The year-over-year increases we saw in loan, deposit, and AUM balances confirm that the power of our Private Banking and Wealth Management model is taking hold,” said Clayton G. Deutsch, CEO and President. “We continue to be pleased with the ongoing improvement in our quality metrics as evidenced by the 24% decline in criticized loans on a year-over-year basis, and the continued strengthening of our capital base. In 2013, we remain committed to growing our fee-based revenues, defending our Net Interest Margin and achieving our 11% ROE target.”
Net Interest Income, Core Fees Increase Year-Over-Year
Net Interest Income in the fourth quarter was $45.5 million, down 2% from $46.4 million in the third quarter of 2012. For the full year of 2012, Net Interest Income was $183.3 million, up 2% from $179.0 million in 2011. Core Fees and Income (Investment Management and Trust Fees, Private Bank Investment Management and Trust Fees, Wealth Advisory Fees, Other Banking Fee Income and Gain on Sale of Loans) for the fourth quarter increased 5% to $29.1 million from $27.6 million in the third quarter of 2012. The increase was driven by fee increases in all three business segments and by a $0.9 million gain on sale of residential mortgage loans that the Company sold during the fourth quarter. For the full year of 2012, Core Fees and Income increased 2% to $109.4 million.
Net Interest Margin was 3.19% in the fourth quarter, up 8 basis points from 3.11% in the third quarter. On a year-over-year basis, Net Interest Margin increased 2 basis points from 3.17%. For the full year of 2012, Net Interest Margin decreased 3 basis points to 3.22%.
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Total Assets Under Management/Advisory (“AUM”) increased to $20.4 billion, up 2% from $20.1 billion in the third quarter of 2012. AUM increased 13% from $18.1 billion in the fourth quarter of 2011. The Company experienced fourth quarter 2012 AUM net inflows of $298 million, as compared to AUM net inflows of $223 million in the third quarter of 2012. AUM net outflows for the fourth quarter of 2011 were ($142) million. AUM net inflows for the full year of 2012 were $621 million, as compared to AUM net outflows of ($492) million in 2011.
Total Expenses Increase in Q4 Due to Non-Cash Benefit Charges and Liabilities Restructuring
Total Expenses (including restructuring costs of $1.6 million) in the fourth quarter of 2012 were $62.7 million, up 8% from $58.2 million (including third quarter restructuring costs of $3.6 million) on a linked quarter basis. For the full year of 2012, Total Expenses (including restructuring costs of $5.9 million) were were $231.9 million, down 1% from Total Expenses (including restructuring costs of $8.1 million) of $233.9 million for the full year of 2011.
“Total Expenses in the quarter were impacted by unusual items totaling $7.6 million, including non-cash benefit charges of $2.0 million, seasonal marketing costs of $1.1 million, liability restructuring costs of $2.0 million, severance costs of $1.6 million and variable compensation costs of $900 thousand,” said David J. Kaye, Chief Financial Officer. “It is important to note that the costs associated with the restructuring of expenses and liabilities will benefit the Company in 2013.”
Q4 Provision Credit Due Primarily to Sale of Pacific Northwest Offices
Provision for Loan Losses in the fourth quarter was a credit of ($5.0) million, compared to a provision credit of ($4.0) million in the third quarter of 2012. The ($5.0) million provision credit was primarily driven by the agreement to sell the Pacific Northwest offices, which the Company announced in December. For the full year of 2012, there was a provision credit of ($3.3) million, as compared to a Provision for Loan Losses of $13.2 million in 2011.
Nonaccrual Loans (“Nonaccruals”) decreased 17% to $60.7 million on a linked quarter basis. On a year-over-year basis, Nonaccruals were down 11%. As a percentage of Total Loans, Nonaccruals were 1.26% in the fourth quarter of 2012, down 22 basis points from 1.48% in the third quarter of 2012. On a year-over-year basis, Nonaccruals as a percentage of Total Loans declined 20 basis points from 1.46%.
Additional credit metrics are listed below on a linked quarter and year-over-year basis:
(In millions) | December 31, 2012 | September 30, 2012 | December 31, 2011 | ||||||||
Total Criticized Loans | $ | 235.0 | $ | 275.5 | $ | 309.3 | |||||
Total Loans 30-89 Days Past Due and Accruing (10) | $ | 46.4 | $ | 9.5 | $ | 27.0 | |||||
Total Net Loans (Charged-off)/ Recovered | $ | (2.1 | ) | $ | (3.9 | ) | $ | (0.1 | ) | ||
Allowance for Loan Losses/ Total Loans | 1.75 | % | 1.83 | % | 2.07 | % | |||||
Capital Ratios Strengthen in Q4, Dividend Increase and Share Repurchase Program Announced
Most regulatory risk-based capital ratios and tangible common equity ratios increased on a linked quarter basis and year-over-year. The Board of Directors today announced a dividend increase to $0.05 per share, up from $0.01 per share last quarter.
“We believe now is the time to begin returning capital to our shareholders given our outlook and confidence in our continued risk management, capital build and earnings power,” said Mr. Deutsch. “Increasing our dividend is a prudent decision which will allow us to reward shareholders while adequately funding our strategy. We will continuously evolve our dividend level while assessing other shareholder friendly transactions. We are committed to managing our capital in a hyper-efficient manner.”
In addition, on January 16, 2013, the Board of Directors also approved a share repurchase program of up to 5% of the Company's outstanding shares. Under the program, shares may be repurchased from time to time in the open market for a two-year period.
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Capital ratios are listed below on a linked quarter and year-over-year basis:
December 31, 2012 | September 30, 2012 | December 31, 2011 | ||||||
Total Risk-Based Capital * | 14.7 | % | 14.7 | % | 15.2 | % | ||
Tier I Risk-Based Capital * | 13.4 | % | 13.1 | % | 12.7 | % | ||
Tier I Leverage Capital * | 9.9 | % | 9.2 | % | 9.0 | % | ||
TCE/TA | 7.7 | % | 7.7 | % | 7.4 | % | ||
TCE/Risk Weighted Assets * | 10.5 | % | 10.4 | % | 10.3 | % | ||
* | December 31, 2012 data is presented based on estimated data. |
Dividend Payments
Concurrent with the release of the fourth quarter 2012 earnings, the Board of Directors of the Company declared a cash dividend to shareholders of $0.05 per share. The record date for this dividend is February 14, 2013, and the payment date is February 28, 2013.
Non-GAAP Financial Measures
The Company uses certain non-GAAP financial measures, such as the TCE/TA and TCE/Risk Weighted Assets ratios, and Operating Expenses excluding restructuring charges, 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 Thursday, January 17, 2013, to discuss the financial results, business highlights and outlook. To access the call:
Dial In #: (888) 317-6003
International Dial In #: (412) 317-6061
Elite Entry Number: 5890660
Replay Information:
Available from January 17 at 12 noon until January 24
Dial In #: (877) 344-7529
International Dial In #: (412) 317-0088
Conference Number: 10023251
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 with Wealth Management and Private Banking affiliates in Boston, New York, Los Angeles, San Francisco and Seattle. The Company has a $6 billion Private Banking balance sheet, and manages over $20 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.
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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, 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 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.
###
CONTACT:
Jeanne Hess
Vice President, Investor Relations
Boston Private Financial Holdings, Inc.
(617) 912-3798
jhess@bostonprivate.com
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Boston Private Financial Holdings, Inc.
Selected Financial Data (Unaudited)
December 31, 2012 | September 30, 2012 | December 31, 2011 | |||||||||
(In thousands, except share and per share data) | |||||||||||
Assets: | |||||||||||
Cash and cash equivalents | $ | 308,744 | $ | 83,585 | $ | 203,354 | |||||
Investment securities available for sale | 699,300 | 755,125 | 844,496 | ||||||||
Loans held for sale (1) | 308,390 | 135,169 | 12,069 | ||||||||
Total loans | 4,814,136 | 4,967,607 | 4,651,228 | ||||||||
Less: Allowance for loan losses | 84,057 | 91,129 | 96,114 | ||||||||
Net loans | 4,730,079 | 4,876,478 | 4,555,114 | ||||||||
Other real estate owned (“OREO”) | 3,616 | 3,186 | 5,103 | ||||||||
Stock in Federal Home Loan Banks | 41,981 | 42,886 | 43,714 | ||||||||
Premises and equipment, net | 27,081 | 28,390 | 29,224 | ||||||||
Goodwill | 110,180 | 110,180 | 110,180 | ||||||||
Intangible assets, net | 24,874 | 25,306 | 28,569 | ||||||||
Fees receivable | 8,836 | 9,460 | 8,147 | ||||||||
Accrued interest receivable | 14,723 | 16,731 | 16,875 | ||||||||
Deferred income taxes, net | 63,840 | 62,964 | 66,782 | ||||||||
Other assets | 123,361 | 123,324 | 115,069 | ||||||||
Assets of discontinued operations (2) | — | — | 10,676 | ||||||||
Total assets | $ | 6,465,005 | $ | 6,272,784 | $ | 6,049,372 | |||||
Liabilities: | |||||||||||
Deposits | $ | 4,885,059 | $ | 4,662,794 | $ | 4,530,411 | |||||
Deposits held for sale (1) | 194,084 | — | — | ||||||||
Securities sold under agreements to repurchase | 116,319 | 106,713 | 130,791 | ||||||||
Federal funds purchased | — | 85,000 | — | ||||||||
Federal Home Loan Bank borrowings | 408,121 | 552,946 | 521,827 | ||||||||
Junior subordinated debentures | 143,647 | 158,647 | 182,053 | ||||||||
Other liabilities | 95,386 | 91,407 | 94,811 | ||||||||
Liabilities of discontinued operations (2) | — | — | 1,663 | ||||||||
Total liabilities | 5,842,616 | 5,657,507 | 5,461,556 | ||||||||
Redeemable Noncontrolling Interests | 19,287 | 19,675 | 21,691 | ||||||||
The Company’s Shareholders’ Equity: | |||||||||||
Preferred stock, $1.00 par value; authorized: 2,000,000 shares; | |||||||||||
Series B, issued and outstanding (contingently convertible): 401 shares at December 31, 2012, September 30, 2012, and December 31, 2011; liquidation value: $100,000 per share | 58,089 | 58,089 | 58,089 | ||||||||
Common stock, $1.00 par value; authorized: 170,000,000 shares; issued and outstanding: 78,743,518 shares at December 31, 2012; 78,929,750 shares at September 30, 2012; and 78,023,317 shares at December 31, 2011 | 78,744 | 78,930 | 78,023 | ||||||||
Additional paid-in capital | 640,891 | 644,801 | 656,436 | ||||||||
Accumulated deficit | (176,746 | ) | (189,838 | ) | (230,017 | ) | |||||
Accumulated other comprehensive income | 2,124 | 3,620 | 3,594 | ||||||||
Total shareholders’ equity | 603,102 | 595,602 | 566,125 | ||||||||
Total liabilities, redeemable noncontrolling interests and shareholders’ equity | $ | 6,465,005 | $ | 6,272,784 | $ | 6,049,372 | |||||
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Boston Private Financial Holdings, Inc.
Selected Financial Data (Unaudited)
Three Months Ended | Twelve Months Ended | ||||||||||||||||||
December 31, 2012 | September 30, 2012 | December 31, 2011 | December 31, 2012 | December 31, 2011 | |||||||||||||||
Interest and dividend income: | (In thousands, except share and per share data) | ||||||||||||||||||
Loans | $ | 51,398 | $ | 52,533 | $ | 51,857 | $ | 209,280 | $ | 212,047 | |||||||||
Taxable investment securities | 650 | 890 | 1,332 | 3,875 | 5,561 | ||||||||||||||
Non-taxable investment securities | 846 | 782 | 846 | 3,228 | 3,768 | ||||||||||||||
Mortgage-backed securities | 1,443 | 1,537 | 1,775 | 6,186 | 7,297 | ||||||||||||||
Federal funds sold and other | 208 | 290 | 226 | 719 | 1,069 | ||||||||||||||
Total interest and dividend income | 54,545 | 56,032 | 56,036 | 223,288 | 229,742 | ||||||||||||||
Interest expense: | |||||||||||||||||||
Deposits | 4,096 | 4,206 | 5,608 | 17,640 | 24,479 | ||||||||||||||
Federal Home Loan Bank borrowings | 3,295 | 3,501 | 4,059 | 14,488 | 16,915 | ||||||||||||||
Junior subordinated debentures | 1,308 | 1,507 | 1,786 | 6,258 | 7,434 | ||||||||||||||
Repurchase agreements and other short-term borrowings | 300 | 452 | 434 | 1,626 | 1,960 | ||||||||||||||
Total interest expense | 8,999 | 9,666 | 11,887 | 40,012 | 50,788 | ||||||||||||||
Net interest income | 45,546 | 46,366 | 44,149 | 183,276 | 178,954 | ||||||||||||||
Provision/ (credit) for loan losses | (5,000 | ) | (4,000 | ) | (2,500 | ) | (3,300 | ) | 13,160 | ||||||||||
Net interest income after provision for loan losses | 50,546 | 50,366 | 46,649 | 186,576 | 165,794 | ||||||||||||||
Fees and other income: | |||||||||||||||||||
Investment management and trust fees - Investment Managers | 10,094 | 10,017 | 9,085 | 39,163 | 39,803 | ||||||||||||||
Investment management and trust fees - Bank | 6,086 | 5,889 | 5,689 | 23,645 | 23,553 | ||||||||||||||
Wealth advisory fees | 9,745 | 9,495 | 8,881 | 37,659 | 34,553 | ||||||||||||||
Other banking fee income | 1,455 | 1,547 | 1,537 | 5,664 | 6,503 | ||||||||||||||
Gain on sale of loans, net | 1,726 | 648 | 593 | 3,225 | 2,489 | ||||||||||||||
Total core fees and income | 29,106 | 27,596 | 25,785 | 109,356 | 106,901 | ||||||||||||||
Gain on repurchase of debt | 874 | 976 | 2,392 | 3,444 | 4,230 | ||||||||||||||
Gain/(loss) on sale of investments, net | (7 | ) | 25 | 109 | 871 | 798 | |||||||||||||
Gain/(loss) on OREO, net | 624 | (104 | ) | 1,261 | 845 | 5,372 | |||||||||||||
Other | (302 | ) | 111 | 62 | (154 | ) | 1,140 | ||||||||||||
Total other income | 1,189 | 1,008 | 3,824 | 5,006 | 11,540 | ||||||||||||||
Operating expense: | |||||||||||||||||||
Salaries and employee benefits | 37,781 | 34,688 | 38,665 | 143,852 | 142,872 | ||||||||||||||
Occupancy and equipment | 7,516 | 8,078 | 7,570 | 30,790 | 29,649 | ||||||||||||||
Professional services | 3,698 | 3,455 | 2,748 | 13,113 | 16,810 | ||||||||||||||
Marketing and business development | 2,968 | 1,346 | 2,032 | 7,422 | 6,802 | ||||||||||||||
Contract services and data processing | 1,391 | 1,446 | 1,141 | 5,380 | 4,644 | ||||||||||||||
Amortization of intangibles | 1,106 | 1,082 | 1,121 | 4,369 | 4,800 | ||||||||||||||
FDIC insurance | 1,003 | 1,138 | 1,253 | 3,972 | 6,139 | ||||||||||||||
Restructuring expense | 1,631 | 3,581 | 653 | 5,911 | 8,055 | ||||||||||||||
Other | 5,644 | 3,336 | 2,783 | 17,041 | 14,083 | ||||||||||||||
Total operating expense | 62,738 | 58,150 | 57,966 | 231,850 | 233,854 | ||||||||||||||
Income/(loss) before income taxes | 18,103 | 20,820 | 18,292 | 69,088 | 50,381 | ||||||||||||||
Income tax expense/(benefit) | 6,115 | 5,124 | 5,722 | 20,330 | 14,280 | ||||||||||||||
Net income/(loss) from continuing operations | 11,988 | 15,696 | 12,570 | 48,758 | 36,101 | ||||||||||||||
Net income/(loss) from discontinued operations (2) | 1,819 | 1,672 | 1,374 | 7,635 | 6,184 | ||||||||||||||
Net income/(loss) before attribution to noncontrolling interests | 13,807 | 17,368 | 13,944 | 56,393 | 42,285 | ||||||||||||||
Less: Net income/ (loss) attributable to noncontrolling interests | 715 | 855 | 882 | 3,122 | 3,148 | ||||||||||||||
Net income/(loss) attributable to the Company | $ | 13,092 | $ | 16,513 | $ | 13,062 | $ | 53,271 | $ | 39,137 | |||||||||
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Boston Private Financial Holdings, Inc.
Selected Financial Data (Unaudited)
Three Months Ended | Twelve Months Ended | ||||||||||||||||||
PER SHARE DATA: | December 31, 2012 | September 30, 2012 | December 31, 2011 | December 31, 2012 | December 31, 2011 | ||||||||||||||
(In thousands, except share and per share data) | |||||||||||||||||||
Calculation of Income/(Loss) for EPS: | |||||||||||||||||||
Net income/(loss) attributable to the Company | $ | 13,092 | $ | 16,513 | $ | 13,062 | $ | 53,271 | $ | 39,137 | |||||||||
Adjustments to Net Income/(Loss) Attributable to the Company to Arrive at Net Income/(Loss) Attributable to Common Shareholders (3) | (239 | ) | (435 | ) | (86 | ) | (781 | ) | (888 | ) | |||||||||
Net Income/(Loss) Attributable to the Common Shareholders | 12,853 | 16,078 | 12,976 | 52,490 | 38,249 | ||||||||||||||
LESS: Amount allocated to participating securities | (1,281 | ) | (1,632 | ) | (1,333 | ) | (5,320 | ) | (3,813 | ) | |||||||||
Net Income/(Loss) Attributable to the Common Shareholders, after allocation to participating securities | $ | 11,572 | $ | 14,446 | $ | 11,643 | $ | 47,170 | $ | 34,436 | |||||||||
End of Period Common Shares Outstanding | 78,743,518 | 78,929,750 | 78,023,317 | ||||||||||||||||
Weighted Average Shares Outstanding: | |||||||||||||||||||
Weighted average basic shares, including participating securities | 85,386,014 | 85,392,074 | 84,658,931 | 85,186,796 | 84,288,834 | ||||||||||||||
LESS: Participating securities | (9,047,609 | ) | (9,101,692 | ) | (9,235,208 | ) | (9,166,805 | ) | (9,119,223 | ) | |||||||||
PLUS: Dilutive potential common shares | 1,066,155 | 1,077,229 | 869,517 | 953,525 | 311,417 | ||||||||||||||
Weighted Average Diluted Shares (4) | 77,404,560 | 77,367,611 | 76,293,240 | 76,973,516 | 75,481,028 | ||||||||||||||
Diluted Total Earnings/(Loss) per Share | $ | 0.15 | $ | 0.19 | $ | 0.15 | $ | 0.61 | $ | 0.46 | |||||||||
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Boston Private Financial Holdings, Inc.
Selected Financial Data (Unaudited)
(In thousands, except per share data) | December 31, 2012 | September 30, 2012 | December 31, 2011 | ||||||||
FINANCIAL DATA: | |||||||||||
Book Value Per Common Share | $ | 6.92 | $ | 6.81 | $ | 6.51 | |||||
Tangible Book Value Per Share (5) | $ | 5.64 | $ | 5.49 | $ | 5.10 | |||||
Market Price Per Share | $ | 9.01 | $ | 9.59 | $ | 7.94 | |||||
ASSETS UNDER MANAGEMENT AND ADVISORY: | |||||||||||
Private Banking | $ | 3,941,000 | $ | 3,784,000 | $ | 3,571,000 | |||||
Investment Managers | 8,444,000 | 8,553,000 | 7,594,000 | ||||||||
Wealth Advisory | 8,052,000 | 7,797,000 | 6,994,000 | ||||||||
Less: Inter-company Relationship | (20,000 | ) | (20,000 | ) | (19,000 | ) | |||||
Assets Under Management and Advisory of Continuing Operations | 20,417,000 | 20,114,000 | 18,140,000 | ||||||||
Assets Under Management and Advisory of Discontinued Operations (2) | — | — | 985,000 | ||||||||
Total Assets Under Management and Advisory | $ | 20,417,000 | $ | 20,114,000 | $ | 19,125,000 | |||||
FINANCIAL RATIOS: | |||||||||||
Total Equity/Total Assets | 9.33 | % | 9.50 | % | 9.36 | % | |||||
Tangible Common Equity/Tangible Assets (5) | 7.67 | % | 7.70 | % | 7.37 | % | |||||
Tangible Common Equity/Risk Weighted Assets (5) | 10.55 | % | 10.39 | % | 10.27 | % | |||||
Allowance for Loan Losses/Total Loans | 1.75 | % | 1.83 | % | 2.07 | % | |||||
Allowance for Loan Losses/Nonaccrual Loans | 138 | % | 124 | % | 141 | % | |||||
Return on Average Assets - Three Months Ended (Annualized) | 0.82 | % | 1.00 | % | 0.85 | % | |||||
Return on Average Equity - Three Months Ended (Annualized) | 8.72 | % | 11.30 | % | 9.37 | % | |||||
Efficiency Ratio - Three Months Ended (Annualized) | 80.12 | % | 75.25 | % | 76.78 | % | |||||
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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: | 12/31/2012 | 09/30/2012 | 12/31/2011 | 12/31/2012 | 09/30/2012 | 12/31/2011 | 12/31/2012 | 09/30/2012 | 12/31/2011 | |||||||||||||||||
AVERAGE ASSETS | ||||||||||||||||||||||||||
Interest-Earning Assets: | ||||||||||||||||||||||||||
Cash and Investments: | ||||||||||||||||||||||||||
Taxable investment securities | $ | 202,970 | $ | 271,990 | $ | 398,668 | $ | 650 | $ | 890 | $ | 1,332 | 1.28 | % | 1.31 | % | 1.33 | % | ||||||||
Non-taxable investment securities (6) | 202,971 | 188,183 | 191,206 | 1,320 | 1,221 | 1,321 | 2.60 | % | 2.60 | % | 2.76 | % | ||||||||||||||
Mortgage-backed securities | 309,359 | 257,680 | 245,423 | 1,443 | 1,537 | 1,775 | 1.87 | % | 2.38 | % | 2.89 | % | ||||||||||||||
Federal funds sold and other | 221,457 | 440,586 | 378,292 | 208 | 290 | 226 | 0.37 | % | 0.26 | % | 0.24 | % | ||||||||||||||
Total Cash and Investments | 936,757 | 1,158,439 | 1,213,589 | 3,621 | 3,938 | 4,654 | 1.54 | % | 1.36 | % | 1.53 | % | ||||||||||||||
Loans: (7) | ||||||||||||||||||||||||||
Commercial and Construction (6) | 2,773,478 | 2,768,279 | 2,417,467 | 33,660 | 33,932 | 32,103 | 4.83 | % | 4.88 | % | 5.26 | % | ||||||||||||||
Residential | 2,024,279 | 2,038,277 | 1,810,530 | 17,626 | 18,230 | 18,189 | 3.48 | % | 3.58 | % | 4.02 | % | ||||||||||||||
Home Equity and Other Consumer | 269,954 | 280,366 | 318,035 | 2,104 | 2,236 | 2,829 | 3.10 | % | 3.17 | % | 3.48 | % | ||||||||||||||
Total Loans | 5,067,711 | 5,086,922 | 4,546,032 | 53,390 | 54,398 | 53,121 | 4.20 | % | 4.26 | % | 4.64 | % | ||||||||||||||
Total Earning Assets | 6,004,468 | 6,245,361 | 5,759,621 | 57,011 | 58,336 | 57,775 | 3.78 | % | 3.72 | % | 3.98 | % | ||||||||||||||
LESS: Allowance for Loan Losses | 90,931 | 99,778 | 99,520 | |||||||||||||||||||||||
Cash and due From Banks (Non-Interest Bearing) | 46,916 | 42,688 | 41,968 | |||||||||||||||||||||||
Other Assets (8) | 395,646 | 412,559 | 420,468 | |||||||||||||||||||||||
TOTAL AVERAGE ASSETS | $ | 6,356,099 | $ | 6,600,830 | $ | 6,122,537 | ||||||||||||||||||||
AVERAGE LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS, AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||
Interest-Bearing Liabilities: | ||||||||||||||||||||||||||
Deposits (9): | ||||||||||||||||||||||||||
Savings and NOW | $ | 494,960 | $ | 458,499 | $ | 492,959 | $ | 168 | $ | 127 | $ | 285 | 0.13 | % | 0.11 | % | 0.23 | % | ||||||||
Money Market | 2,377,447 | 2,260,748 | 1,971,631 | 2,287 | 2,206 | 2,418 | 0.38 | % | 0.39 | % | 0.49 | % | ||||||||||||||
Certificates of Deposit | 712,358 | 805,540 | 985,530 | 1,641 | 1,873 | 2,905 | 0.92 | % | 0.92 | % | 1.17 | % | ||||||||||||||
Total Deposits | 3,584,765 | 3,524,787 | 3,450,120 | 4,096 | 4,206 | 5,608 | 0.45 | % | 0.47 | % | 0.64 | % | ||||||||||||||
Junior Subordinated Debentures | 150,089 | 168,288 | 186,496 | 1,308 | 1,507 | 1,786 | 3.41 | % | 3.50 | % | 3.83 | % | ||||||||||||||
FHLB Borrowings and Other | 599,248 | 637,471 | 638,690 | 3,595 | 3,953 | 4,493 | 2.35 | % | 2.43 | % | 2.75 | % | ||||||||||||||
Total Interest-Bearing Liabilities | 4,334,102 | 4,330,546 | 4,275,306 | 8,999 | 9,666 | 11,887 | 0.82 | % | 0.88 | % | 1.10 | % | ||||||||||||||
Noninterest Bearing Demand Deposits | 1,304,276 | 1,561,135 | 1,157,151 | |||||||||||||||||||||||
Other Liabilities (8) | 98,279 | 105,914 | 110,193 | |||||||||||||||||||||||
Total Average Liabilities | 5,736,657 | 5,997,595 | 5,542,650 | |||||||||||||||||||||||
Redeemable Noncontrolling Interests | 18,780 | 18,496 | 22,314 | |||||||||||||||||||||||
Average Shareholders' Equity | 600,662 | 584,739 | 557,573 | |||||||||||||||||||||||
TOTAL AVERAGE LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS, AND SHAREHOLDERS' EQUITY | $ | 6,356,099 | $ | 6,600,830 | $ | 6,122,537 | ||||||||||||||||||||
Net Interest Income - on a Fully Taxable Equivalent Basis (FTE) | $ | 48,012 | $ | 48,670 | $ | 45,888 | ||||||||||||||||||||
LESS: FTE Adjustment (6) | 2,466 | 2,304 | 1,739 | |||||||||||||||||||||||
Net Interest Income (GAAP Basis) | $ | 45,546 | $ | 46,366 | $ | 44,149 | ||||||||||||||||||||
Interest Rate Spread | 2.96 | % | 2.84 | % | 2.88 | % | ||||||||||||||||||||
Net Interest Margin | 3.19 | % | 3.11 | % | 3.17 | % | ||||||||||||||||||||
9
Boston Private Financial Holdings, Inc.
Selected Financial Data (Unaudited)
Average Balance | Interest Income/Expense | Average Yield/Rate | ||||||||||||||||
(In Thousands) | Twelve Months Ended | Twelve Months Ended | Twelve Months Ended | |||||||||||||||
AVERAGE BALANCE SHEET: | December 31, 2012 | December 31, 2011 | December 31, 2012 | December 31, 2011 | December 31, 2012 | December 31, 2011 | ||||||||||||
AVERAGE ASSETS | ||||||||||||||||||
Interest-Earning Assets: | ||||||||||||||||||
Cash and Investments: | ||||||||||||||||||
Taxable investment securities | $ | 297,646 | $ | 377,812 | $ | 3,875 | $ | 5,561 | 1.30 | % | 1.47 | % | ||||||
Non-taxable investment securities (6) | 192,913 | 191,513 | 5,038 | 5,764 | 2.61 | % | 3.01 | % | ||||||||||
Mortgage-backed securities | 266,114 | 236,435 | 6,186 | 7,297 | 2.32 | % | 3.09 | % | ||||||||||
Federal funds sold and other | 239,371 | 446,953 | 719 | 1,069 | 0.30 | % | 0.24 | % | ||||||||||
Total Cash and Investments | 996,044 | 1,252,713 | 15,818 | 19,691 | 1.59 | % | 1.57 | % | ||||||||||
Loans: (7) | ||||||||||||||||||
Commercial and Construction (6) | 2,706,444 | 2,399,402 | 134,755 | 130,441 | 4.98 | % | 5.44 | % | ||||||||||
Residential | 1,962,192 | 1,761,736 | 71,664 | 75,071 | 3.65 | % | 4.26 | % | ||||||||||
Home Equity and Other Consumer | 290,680 | 312,507 | 9,435 | 11,697 | 3.25 | % | 3.74 | % | ||||||||||
Total Loans | 4,959,316 | 4,473,645 | 215,854 | 217,209 | 4.35 | % | 4.86 | % | ||||||||||
Total Earning Assets | 5,955,360 | 5,726,358 | 231,672 | 236,900 | 3.89 | % | 4.14 | % | ||||||||||
LESS: Allowance for Loan Losses | 97,094 | 100,483 | ||||||||||||||||
Cash and due From Banks (Non-Interest Bearing) | 56,022 | 58,349 | ||||||||||||||||
Other Assets (8) | 424,278 | 417,893 | ||||||||||||||||
TOTAL AVERAGE ASSETS | $ | 6,338,566 | $ | 6,102,117 | ||||||||||||||
AVERAGE LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS, AND SHAREHOLDERS' EQUITY | ||||||||||||||||||
Interest-Bearing Liabilities: | ||||||||||||||||||
Deposits (9): | ||||||||||||||||||
Savings and NOW | $ | 500,084 | $ | 517,659 | $ | 827 | $ | 1,375 | 0.17 | % | 0.27 | % | ||||||
Money Market | 2,189,344 | 1,898,999 | 8,777 | 10,524 | 0.40 | % | 0.55 | % | ||||||||||
Certificates of Deposit | 810,590 | 1,027,347 | 8,036 | 12,580 | 0.99 | % | 1.22 | % | ||||||||||
Total Deposits | 3,500,018 | 3,444,005 | 17,640 | 24,479 | 0.50 | % | 0.71 | % | ||||||||||
Junior Subordinated Debentures | 167,786 | 190,473 | 6,258 | 7,434 | 3.73 | % | 3.90 | % | ||||||||||
FHLB Borrowings and Other | 663,165 | 656,772 | 16,114 | 18,875 | 2.43 | % | 2.87 | % | ||||||||||
Total Interest-Bearing Liabilities | 4,330,969 | 4,291,250 | 40,012 | 50,788 | 0.92 | % | 1.18 | % | ||||||||||
Noninterest Bearing Demand Deposits | 1,304,514 | 1,141,563 | ||||||||||||||||
Other Liabilities (8) | 103,271 | 109,970 | ||||||||||||||||
Total Average Liabilities | 5,738,754 | 5,542,783 | ||||||||||||||||
Redeemable Noncontrolling Interests | 19,822 | 21,018 | ||||||||||||||||
Average Shareholders' Equity | 579,990 | 538,316 | ||||||||||||||||
TOTAL AVERAGE LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS, AND SHAREHOLDERS' EQUITY | $ | 6,338,566 | $ | 6,102,117 | ||||||||||||||
Net Interest Income - on a Fully Taxable Equivalent Basis (FTE) | $ | 191,660 | $ | 186,112 | ||||||||||||||
LESS: FTE Adjustment (6) | 8,384 | 7,158 | ||||||||||||||||
Net Interest Income (GAAP Basis) | $ | 183,276 | $ | 178,954 | ||||||||||||||
Interest Rate Spread | 2.97 | % | 2.96 | % | ||||||||||||||
Net Interest Margin | 3.22 | % | 3.25 | % | ||||||||||||||
10
Boston Private Financial Holdings, Inc.
Selected Financial Data (Unaudited)
(In Thousands) | December 31, 2012 | September 30, 2012 | December 31, 2011 | ||||||||
LOAN DATA (10): | |||||||||||
Commercial and Industrial Loans: | |||||||||||
New England | $ | 691,863 | $ | 642,141 | $ | 531,632 | |||||
San Francisco Bay | 61,191 | 65,034 | 72,850 | ||||||||
Southern California | 53,272 | 31,181 | 38,539 | ||||||||
Pacific Northwest | — | 47,979 | 35,027 | ||||||||
Total Commercial and Industrial Loans | $ | 806,326 | $ | 786,335 | $ | 678,048 | |||||
Commercial Real Estate Loans: | |||||||||||
New England | $ | 663,442 | $ | 645,222 | $ | 643,263 | |||||
San Francisco Bay | 647,659 | 663,753 | 679,995 | ||||||||
Southern California | 380,249 | 354,097 | 233,416 | ||||||||
Pacific Northwest | — | 141,739 | 121,600 | ||||||||
Total Commercial Real Estate Loans | $ | 1,691,350 | $ | 1,804,811 | $ | 1,678,274 | |||||
Construction and Land Loans: | |||||||||||
New England | $ | 93,489 | $ | 116,783 | $ | 106,385 | |||||
San Francisco Bay | 33,655 | 36,747 | 36,339 | ||||||||
Southern California | 10,426 | 8,590 | 5,622 | ||||||||
Pacific Northwest | — | 2,771 | 5,363 | ||||||||
Total Construction and Land Loans | $ | 137,570 | $ | 164,891 | $ | 153,709 | |||||
Residential Loans: | |||||||||||
New England | $ | 1,173,741 | $ | 1,168,492 | $ | 1,247,975 | |||||
San Francisco Bay | 431,550 | 391,782 | 322,352 | ||||||||
Southern California | 300,798 | 306,001 | 192,708 | ||||||||
Pacific Northwest | — | 74,942 | 60,368 | ||||||||
Total Residential Loans | $ | 1,906,089 | $ | 1,941,217 | $ | 1,823,403 | |||||
Home Equity Loans: | |||||||||||
New England | $ | 79,947 | $ | 81,473 | $ | 85,118 | |||||
San Francisco Bay | 36,730 | 37,122 | 48,182 | ||||||||
Southern California | 6,874 | 7,280 | 6,265 | ||||||||
Pacific Northwest | — | 2,377 | 4,133 | ||||||||
Total Home Equity Loans | $ | 123,551 | $ | 128,252 | $ | 143,698 | |||||
Other Consumer Loans: | |||||||||||
New England | $ | 131,999 | $ | 116,951 | $ | 147,356 | |||||
San Francisco Bay | 9,581 | 11,551 | 12,526 | ||||||||
Southern California | 7,148 | 8,964 | 10,123 | ||||||||
Pacific Northwest | — | 1,678 | 1,622 | ||||||||
Eliminations and other, net | 522 | 2,957 | 2,469 | ||||||||
Total Other Consumer Loans | $ | 149,250 | $ | 142,101 | $ | 174,096 | |||||
Total Loans | |||||||||||
New England | $ | 2,834,481 | $ | 2,771,062 | $ | 2,761,729 | |||||
San Francisco Bay | 1,220,366 | 1,205,989 | 1,172,244 | ||||||||
Southern California | 758,767 | 716,113 | 486,673 | ||||||||
Pacific Northwest | — | 271,486 | 228,113 | ||||||||
Eliminations and other, net | 522 | 2,957 | 2,469 | ||||||||
Total Loans | $ | 4,814,136 | $ | 4,967,607 | $ | 4,651,228 | |||||
11
Boston Private Financial Holdings, Inc.
Selected Financial Data (Unaudited)
(In Thousands) | December 31, 2012 | September 30, 2012 | December 31, 2011 | ||||||||
CREDIT QUALITY (10): | |||||||||||
Special Mention Loans: | |||||||||||
New England | $ | 40,389 | $ | 33,174 | $ | 36,680 | |||||
San Francisco Bay | 24,566 | 26,443 | 59,065 | ||||||||
Southern California | 19,784 | 26,967 | 36,048 | ||||||||
Pacific Northwest | — | 7,838 | 11,328 | ||||||||
Total Special Mention Loans | $ | 84,739 | $ | 94,422 | $ | 143,121 | |||||
Accruing Substandard Loans (11): | |||||||||||
New England | $ | 28,201 | $ | 39,707 | $ | 23,133 | |||||
San Francisco Bay | 49,204 | 49,754 | 57,199 | ||||||||
Southern California | 12,724 | 13,588 | 15,723 | ||||||||
Pacific Northwest | — | 4,757 | 2,186 | ||||||||
Total Accruing Substandard Loans | $ | 90,129 | $ | 107,806 | $ | 98,241 | |||||
Nonaccruing Loans: | |||||||||||
New England | $ | 29,203 | $ | 36,919 | $ | 33,411 | |||||
San Francisco Bay | 24,932 | 28,710 | 25,598 | ||||||||
Southern California | 6,610 | 6,817 | 7,323 | ||||||||
Pacific Northwest | — | 948 | 1,777 | ||||||||
Total Nonaccruing Loans | $ | 60,745 | $ | 73,394 | $ | 68,109 | |||||
Other Real Estate Owned: | |||||||||||
New England | $ | 1,744 | $ | 191 | $ | 98 | |||||
San Francisco Bay | 1,395 | 2,383 | 2,194 | ||||||||
Southern California | — | — | 1,143 | ||||||||
Pacific Northwest | 477 | 612 | 1,668 | ||||||||
Total Other Real Estate Owned | $ | 3,616 | $ | 3,186 | $ | 5,103 | |||||
Loans 30-89 Days Past Due and Accruing (12): | |||||||||||
New England | $ | 20,751 | $ | 4,832 | $ | 9,834 | |||||
San Francisco Bay | 11,771 | 3,751 | 11,446 | ||||||||
Southern California | 13,854 | 917 | 5,677 | ||||||||
Pacific Northwest | — | — | — | ||||||||
Total Loans 30-89 Days Past Due and Accruing | $ | 46,376 | $ | 9,500 | $ | 26,957 | |||||
Loans (Charged-off)/ Recovered, Net for the Three Months Ended: | |||||||||||
New England | $ | (1,148 | ) | $ | (3,528 | ) | $ | (1,379 | ) | ||
San Francisco Bay | (1,094 | ) | 189 | 1,612 | |||||||
Southern California | 168 | 231 | (393 | ) | |||||||
Pacific Northwest | 2 | (817 | ) | 15 | |||||||
Total Net Loans (Charged-off)/ Recovered | $ | (2,072 | ) | $ | (3,925 | ) | $ | (145 | ) | ||
Loans (Charged-off)/ Recovered, Net for the Twelve Months Ended: | |||||||||||
New England | $ | (5,593 | ) | $ | (3,532 | ) | |||||
San Francisco Bay | (2,768 | ) | (14,979 | ) | |||||||
Southern California | 289 | 4,066 | |||||||||
Pacific Northwest | (685 | ) | (1,004 | ) | |||||||
Total Net Loans (Charged-off)/ Recovered | $ | (8,757 | ) | $ | (15,449 | ) | |||||
12
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. Accordingly, the assets and liabilities to be sold as part of this transaction have been classified as held for sale at December 31, 2012. Within loans held for sale on the consolidated balance sheet, $276.7 million of the balance at December 31, 2012 relate to the Pacific Northwest transaction. All of the deposits held for sale at December 31, 2012 relate to the Pacific Northwest transaction. All other assets and liabilities that will be included in the Pacific Northwest transaction have been classified as other assets held for sale or other liabilities held for sale and are included within other assets or other liabilities on the consolidated balance sheet at December 31, 2012. |
(2) | In the second quarter of 2012, the Company completed the sale of its affiliate Davidson Trust Company. In 2009, the Company completed the sale of its affiliates Boston Private Value Investors, Inc.; Sand Hill Advisors, LLC; RINET Company, LLC; Gibraltar Private Bank & Trust Company; and Westfield Capital Management Company, LLC. Accordingly, prior period and current financial information related to the divested companies are included with discontinued operations. |
(3) | Adjustments to Net Income/(Loss) 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 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 to 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 Earning Per Share calculation. The potential dilutive shares relate to: unexercised stock options, unvested non-participating restricted stock, unexercised stock warrants, and unconverted Convertible Trust Preferred securities. The amount of shares that were anti-dilutive for the three and twelve months ended December 31, 2012 was 0.3 million in both periods. The amount of shares that were anti-dilutive for the three and twelve months ended December 31, 2011 were 1.5 million in both periods. The amount of shares that were anti-dilutive for the three months ended September 30, 2012 was 0.8 million. See Part II. Item 8. "Financial Statements and Supplementary Data - Note 1: Basis of Presentation and Summary of Significant Accounting Policies" in the Company's Annual Report on Form 10-K for the year ended December 31, 2011 for additional information. |
(5) | The Company uses certain non-GAAP financial measures, such as: Tangible Book Value; the Tangible Common Equity ("TCE") to Tangible Assets ("TA") ratio; the TCE to Risk Weighted Assets ratio; pre-tax, pre-provision earnings; and operating expenses excluding restructuring costs 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 the Non-GAAP TCE to Risk Weighted Assets 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 Goodwill and Intangible Assets, net and includes the difference between Redemption Value and value per ASC 810, Consolidation ("ASC 810"), for Redeemable Noncontrolling Interests.
13
Boston Private Financial Holdings, Inc.
Selected Financial Data
(Unaudited)
(In thousands, except per share data) | December 31, 2012 | September 30, 2012 | December 31, 2011 | ||||||||
Total Balance Sheet Assets | $ | 6,465,005 | $ | 6,272,784 | $ | 6,049,372 | |||||
LESS: Goodwill and Intangible Assets, net * | (135,054 | ) | (135,486 | ) | (145,600 | ) | |||||
Tangible Assets (non-GAAP) | $ | 6,329,951 | $ | 6,137,298 | $ | 5,903,772 | |||||
Total Equity | $ | 603,102 | $ | 595,602 | $ | 566,125 | |||||
LESS: Goodwill and Intangible Assets, net | (135,054 | ) | (135,486 | ) | (145,600 | ) | |||||
ADD: Difference between Redemption Value of Non-controlling Interests and value under ASC 810 | 17,201 | 12,744 | 14,381 | ||||||||
Total adjusting items | (117,853 | ) | (122,742 | ) | (131,219 | ) | |||||
Tangible Common Equity (non-GAAP) | $ | 485,249 | $ | 472,860 | $ | 434,906 | |||||
Total Equity/Total Assets | 9.33 | % | 9.50 | % | 9.36 | % | |||||
Tangible Common Equity/Tangible Assets (non-GAAP) | 7.67 | % | 7.70 | % | 7.37 | % | |||||
Total Risk Weighted Assets ** | $ | 4,601,499 | $ | 4,551,665 | $ | 4,234,280 | |||||
Tangible Common Equity/Total Risk Weighted Assets (non-GAAP) | 10.55 | % | 10.39 | % | 10.27 | % | |||||
End of Period Shares Outstanding | 78,744 | 78,930 | 78,023 | ||||||||
EOP Carlyle Common Convertible Shares | 7,261 | 7,261 | 7,261 | ||||||||
Common Equivalent Shares | 86,005 | 86,191 | 85,284 | ||||||||
Book Value Per Common Share | $ | 6.92 | $ | 6.81 | $ | 6.51 | |||||
Tangible Book Value Per Share (non-GAAP) | $ | 5.64 | $ | 5.49 | $ | 5.10 | |||||
* For the TCE to TA ratio, Goodwill and Intangible Assets, net includes Goodwill and Intangible Assets of discontinued operations for December 31, 2011, which are included on the consolidated balance sheet with Assets of Discontinued Operations.
** Risk Weighted Assets for December 31, 2012 is presented based on estimated data.
Reconciliations from the Company's GAAP income from continuing operations before income taxes to Non-GAAP pre-tax, pre-provision earnings and from GAAP operating expenses to Non-GAAP operating expenses excluding restructuring costs are presented below:
Three Months Ended | Twelve Months Ended | ||||||||||||||||||
(In Thousands) | December 31, 2012 | September 30, 2012 | December 31, 2011 | December 31, 2012 | December 31, 2011 | ||||||||||||||
Income/(loss) before income taxes (GAAP) | $ | 18,103 | $ | 20,820 | $ | 18,292 | $ | 69,088 | $ | 50,381 | |||||||||
ADD BACK: Provision/ (credit) for loan losses | (5,000 | ) | (4,000 | ) | (2,500 | ) | (3,300 | ) | 13,160 | ||||||||||
Pre-tax, pre-provision earnings (Non-GAAP) | $ | 13,103 | $ | 16,820 | $ | 15,792 | $ | 65,788 | $ | 63,541 | |||||||||
Total operating expense (GAAP) | $ | 62,738 | $ | 58,150 | $ | 57,966 | $ | 231,850 | $ | 233,854 | |||||||||
LESS: Restructuring expense | 1,631 | 3,581 | 653 | 5,911 | 8,055 | ||||||||||||||
Total operating expenses (excluding restructuring costs) (Non-GAAP) | $ | 61,107 | $ | 54,569 | $ | 57,313 | $ | 225,939 | $ | 225,799 | |||||||||
(6) | 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. |
(7) | Includes Loans Held for Sale and Nonaccrual Loans. |
(8) | Assets and liabilities of discontinued operations are included in other assets and other liabilities in the average balance sheet presentation. |
(9) | Includes Deposits Held for Sale. |
14
Boston Private Financial Holdings, Inc.
Selected Financial Data
(Unaudited)
(10) | 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 not expected to be included the sale of that region's offices have been included with New England at December 31, 2012, as those remaining loans will be managed out of the New England offices after the sale. 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”. |
(11) | Accruing substandard loans include loans that are classified as substandard but are still accruing interest income. The Bank 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. |
(12) | In addition to loans 30-89 days past due and accruing, at December 31, 2012, the Company had three loans totaling $3.6 million that were more than 90 days past due but still on accrual status. These loans originated in the New England region. At September 30, 2012, the Company had three loans totaling $2.7 million that were more than 90 days past due but still on accrual status. These loans originated in the New England and San Francisco regions. At December 31, 2011, there were two loans totaling less than $0.1 million that were more than 90 days past due but still on accrual status. |
15