(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification Number) |
BOSTON PRIVATE FINANCIAL HOLDINGS, INC. | ||||||||
By: | /S/ STEVEN M. GAVEN | |||||||
Name: | Steven M. Gaven | |||||||
Title: | Executive Vice President, Chief Financial Officer | |||||||
Date: January 21, 2021 |
Announced Merger |
Summary Financial Results | ||||||||||||||||||||||||||||||||
% Change | ||||||||||||||||||||||||||||||||
($ in millions, except for per share data) | 4Q20 | 3Q20 | 4Q19 | LQ | Y/Y | |||||||||||||||||||||||||||
Net income - GAAP | $25.0 | $22.7 | $21.2 | 10 | % | 18 | % | |||||||||||||||||||||||||
Net income - Operating (Non-GAAP) | 25.0 | 22.0 | 20.5 | 13 | % | 22 | % | |||||||||||||||||||||||||
Diluted earnings per share - GAAP | $0.30 | $0.28 | $0.26 | 7 | % | 15 | % | |||||||||||||||||||||||||
Diluted earnings per share - Operating (Non-GAAP) | $0.30 | $0.27 | $0.25 | 11 | % | 20 | % | |||||||||||||||||||||||||
Non-GAAP Financial Measures: | ||||||||||||||||||||||||||||||||
Pre-tax, pre-provision income | $28.1 | $19.9 | $24.5 | 41 | % | 15 | % | |||||||||||||||||||||||||
Return on average common equity ("ROACE") | 11.5 | % | 10.7 | % | 10.3 | % | ||||||||||||||||||||||||||
Return on average tangible common equity ("ROATCE") | 12.7 | % | 11.9 | % | 11.5 | % | ||||||||||||||||||||||||||
Net Interest Income and Margin | ||||||||||||||||||||||||||||||||
% Change | ||||||||||||||||||||||||||||||||
($ in millions) | 4Q20 | 3Q20 | 4Q19 | LQ | Y/Y | |||||||||||||||||||||||||||
Net interest income | $59.4 | $57.8 | $56.1 | 3 | % | 6 | % | |||||||||||||||||||||||||
Net interest margin | 2.52 | % | 2.61 | % | 2.70 | % | ||||||||||||||||||||||||||
Noninterest Income | ||||||||||||||||||||||||||||||||
% Change | ||||||||||||||||||||||||||||||||
($ in millions) | 4Q20 | 3Q20 | 4Q19 | LQ | Y/Y | |||||||||||||||||||||||||||
Wealth management and trust fees | $19.0 | $18.2 | $18.7 | 4 | % | 2 | % | |||||||||||||||||||||||||
Investment management fees | 1.2 | 1.4 | 2.6 | (16) | % | (54) | % | |||||||||||||||||||||||||
Private banking fees 1 | 5.0 | 2.3 | 3.5 | nm | 44 | % | ||||||||||||||||||||||||||
Total core fees and income | $25.2 | $22.0 | $24.8 | 15 | % | 2 | % | |||||||||||||||||||||||||
Total other income | 1.4 | 1.1 | 2.0 | 33 | % | (29) | % | |||||||||||||||||||||||||
Total noninterest income | $26.7 | $23.0 | $26.8 | 16 | % | (1) | % | |||||||||||||||||||||||||
nm = not meaningful | ||||||||||||||||||||||||||||||||
1 Private banking fees includes Other banking fee income and Gain/(loss) on sale of loans, net |
Assets Under Management/Advisory | ||||||||||||||||||||||||||||||||
% Change | ||||||||||||||||||||||||||||||||
($ in millions) | 4Q20 | 3Q20 | 4Q19 | LQ | Y/Y | |||||||||||||||||||||||||||
Wealth Management and Trust | $16,574 | $15,581 | $15,224 | 6 | % | 9 | % | |||||||||||||||||||||||||
Other 2 | 526 | 672 | 1,544 | (22) | % | (66) | % | |||||||||||||||||||||||||
Total assets under management/advisory | $17,100 | $16,253 | $16,768 | 5 | % | 2 | % | |||||||||||||||||||||||||
Net flows | ||||||||||||||||||||||||||||||||
Wealth Management and Trust | $(128) | $(12) | $(114) | |||||||||||||||||||||||||||||
Other 2 | (268) | (395) | (95) | |||||||||||||||||||||||||||||
Total net flows | $(396) | $(407) | $(209) | |||||||||||||||||||||||||||||
2 Includes results from DGHM |
Noninterest Expense | ||||||||||||||||||||||||||||||||
% Change | ||||||||||||||||||||||||||||||||
($ in millions) | 4Q20 | 3Q20 | 4Q19 | LQ | Y/Y | |||||||||||||||||||||||||||
Salaries and employee benefits | $36.0 | $34.7 | $34.2 | 4 | % | 5 | % | |||||||||||||||||||||||||
Occupancy and equipment | 7.7 | 8.2 | 7.6 | (5) | % | 2 | % | |||||||||||||||||||||||||
Information systems | 8.6 | 7.1 | 6.5 | 22 | % | 33 | % | |||||||||||||||||||||||||
Professional services | 2.7 | 4.0 | 3.9 | (32) | % | (30) | % | |||||||||||||||||||||||||
Marketing and business development | 1.2 | 0.9 | 2.0 | 23 | % | (43) | % | |||||||||||||||||||||||||
Amortization of intangibles | 0.6 | 0.7 | 0.7 | (21) | % | (16) | % | |||||||||||||||||||||||||
FDIC insurance | 0.9 | 1.0 | — | (9) | % | nm | ||||||||||||||||||||||||||
Other | 0.2 | 4.4 | 3.6 | (94) | % | (93) | % | |||||||||||||||||||||||||
Total noninterest expense | $58.0 | $60.9 | $58.5 | (5) | % | (1) | % | |||||||||||||||||||||||||
Memo: Excluding Off-Balance Sheet Provision | ||||||||||||||||||||||||||||||||
Reserve for unfunded loan commitments | $(2.4) | $1.8 | — | nm | nm | |||||||||||||||||||||||||||
Total noninterest expense, excluding Reserve for unfunded loan commitments (non-GAAP) | $60.4 | $59.2 | $58.5 | 2 | % | 3 | % | |||||||||||||||||||||||||
Income Tax Expense | ||||||||||||||||||||||||||||||||
Loans - QTD Averages & Yields | ||||||||||||||||||||||||||||||||
% Change | ||||||||||||||||||||||||||||||||
($ in millions) | 4Q20 | 3Q20 | 4Q19 | LQ | Y/Y | |||||||||||||||||||||||||||
Commercial and industrial | $1,036 | $1,033 | $1,142 | — | % | (9) | % | |||||||||||||||||||||||||
Paycheck Protection Program ("PPP") | 349 | 373 | — | (6) | % | nm | ||||||||||||||||||||||||||
Commercial real estate | 2,711 | 2,653 | 2,562 | 2 | % | 6 | % | |||||||||||||||||||||||||
Construction and land | 172 | 218 | 217 | (21) | % | (21) | % | |||||||||||||||||||||||||
Residential | 2,721 | 2,810 | 2,935 | (3) | % | (7) | % | |||||||||||||||||||||||||
Home equity | 79 | 84 | 85 | (6) | % | (6) | % | |||||||||||||||||||||||||
Other consumer | 121 | 112 | 132 | 8 | % | (8) | % | |||||||||||||||||||||||||
Total loans | $7,189 | $7,283 | $7,073 | (1) | % | 2 | % | |||||||||||||||||||||||||
Total loans, excluding PPP (non-GAAP) | $6,840 | $6,910 | $7,073 | (1) | % | (3) | % | |||||||||||||||||||||||||
Total loan yields | 3.31 | % | 3.23 | % | 3.83 | % | ||||||||||||||||||||||||||
Deposits - QTD Averages & Costs | ||||||||||||||||||||||||||||||||
% Change | ||||||||||||||||||||||||||||||||
($ in millions) | 4Q20 | 3Q20 | 4Q19 | LQ | Y/Y | |||||||||||||||||||||||||||
Non-interest bearing deposits | $2,483 | $2,321 | $2,002 | 7 | % | 24 | % | |||||||||||||||||||||||||
Interest bearing deposits | 5,868 | 5,378 | 4,957 | 9 | % | 18 | % | |||||||||||||||||||||||||
Total deposits | $8,351 | $7,700 | $6,959 | 8 | % | 20 | % | |||||||||||||||||||||||||
Cost of total deposits | 0.26 | % | 0.33 | % | 0.86 | % | ||||||||||||||||||||||||||
Cost of total interest-bearing deposits | 0.37 | % | 0.48 | % | 1.20 | % | ||||||||||||||||||||||||||
Provision and Asset Quality | ||||||||||||||||||||||||||||||||
($ in millions) | 4Q20 | 3Q20 | 2Q20 | 1Q20 | 4Q19 | |||||||||||||||||||||||||||
Provision and Allowance | ||||||||||||||||||||||||||||||||
Provision/(credit) for loan losses | $(3.0) | $(4.6) | $22.6 | $17.0 | $(3.7) | |||||||||||||||||||||||||||
Reserve for unfunded loan commitments | (2.4) | 1.8 | 2.8 | 1.8 | — | |||||||||||||||||||||||||||
Total Provision/(credit) for credit losses | $(5.4) | $(2.8) | $25.4 | $18.8 | $(3.7) | |||||||||||||||||||||||||||
Allowance for loan losses as a % of Total loans | 1.14 | % | 1.17 | % | 1.22 | % | 0.97 | % | 1.03 | % | ||||||||||||||||||||||
Asset Quality | ||||||||||||||||||||||||||||||||
Total net loans (charged-off)/ recovered | $(0.3) | $(0.2) | $(1.5) | $(0.3) | $0.3 | |||||||||||||||||||||||||||
Total nonaccrual loans | $23.9 | $41.3 | $25.6 | $24.3 | $16.1 | |||||||||||||||||||||||||||
Nonaccrual loans as a % of Total loans | 0.34 | % | 0.57 | % | 0.35 | % | 0.35 | % | 0.23 | % | ||||||||||||||||||||||
Special mention loans (criticized loans) | $187.2 | $199.5 | $191.9 | $92.6 | $52.0 | |||||||||||||||||||||||||||
Classified loans | 130.7 | 123.1 | 114.2 | 112.3 | 74.0 | |||||||||||||||||||||||||||
Total criticized and classified loans | $318.0 | $322.6 | $306.1 | $204.9 | $126.1 | |||||||||||||||||||||||||||
Capital | ||||||||||||||||||||||||||||||||
4Q20 | 3Q20 | 2Q20 | 1Q20 | 4Q19 | ||||||||||||||||||||||||||||
Tangible common equity/ Tangible assets (non-GAAP) | 8.0 | % | 8.3 | % | 8.3 | % | 8.8 | % | 8.6 | % | ||||||||||||||||||||||
Tangible book value per share (non-GAAP) | $9.73 | $9.48 | $9.25 | $9.31 | $9.02 | |||||||||||||||||||||||||||
Regulatory Capital Ratios: 3 | ||||||||||||||||||||||||||||||||
Tier 1 common equity | 11.5 | % | 11.3 | % | 11.1 | % | 11.2 | % | 11.4 | % | ||||||||||||||||||||||
Tier 1 risk-based capital | 13.0 | % | 12.8 | % | 12.6 | % | 12.7 | % | 13.0 | % | ||||||||||||||||||||||
Total risk-based capital | 14.3 | % | 14.1 | % | 13.9 | % | 13.8 | % | 14.1 | % | ||||||||||||||||||||||
Tier 1 leverage capital | 8.9 | % | 9.2 | % | 9.2 | % | 9.7 | % | 9.8 | % | ||||||||||||||||||||||
3 Current quarter information is presented based on estimated data. |
Dividend Payments |
Non-GAAP Financial Measures |
About Boston Private |
Forward-Looking Statements |
BOSTON PRIVATE FINANCIAL HOLDINGS, INC. | |||||||||||||||||||||||||||||
Consolidated Balance Sheets | |||||||||||||||||||||||||||||
Unaudited ($ in thousands, except share and per share data) | |||||||||||||||||||||||||||||
4Q20 | 3Q20 | 2Q20 | 1Q20 | 4Q19 | |||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 1,055,588 | $ | 546,263 | $ | 179,027 | $ | 61,714 | $ | 292,479 | |||||||||||||||||||
Investment securities available-for-sale | 1,243,693 | 1,011,327 | 1,002,970 | 993,166 | 978,284 | ||||||||||||||||||||||||
Investment securities held-to-maturity | 35,223 | 38,600 | 42,495 | 45,395 | 48,212 | ||||||||||||||||||||||||
Equity securities at fair value | 41,452 | 32,818 | 24,492 | 23,080 | 18,810 | ||||||||||||||||||||||||
Stock in Federal Home Loan Bank and Federal Reserve Bank | 28,663 | 36,618 | 42,407 | 45,273 | 39,078 | ||||||||||||||||||||||||
Loans held for sale | 17,421 | 15,074 | 9,786 | 7,671 | 7,386 | ||||||||||||||||||||||||
Loans | 7,104,309 | 7,222,569 | 7,332,954 | 7,043,338 | 6,976,704 | ||||||||||||||||||||||||
Less: Allowance for loan losses | 81,238 | 84,551 | 89,324 | 68,211 | 71,982 | ||||||||||||||||||||||||
Loans, net of Allowance for loan losses | 7,023,071 | 7,138,018 | 7,243,630 | 6,975,127 | 6,904,722 | ||||||||||||||||||||||||
Premises and equipment, net | 44,087 | 42,907 | 43,805 | 43,544 | 44,527 | ||||||||||||||||||||||||
Goodwill | 57,607 | 57,607 | 57,607 | 57,607 | 57,607 | ||||||||||||||||||||||||
Intangible assets, net | 9,056 | 8,898 | 8,935 | 9,637 | 10,352 | ||||||||||||||||||||||||
Accrued interest receivable | 26,191 | 25,935 | 24,918 | 24,054 | 24,175 | ||||||||||||||||||||||||
Deferred income taxes, net | 6,774 | 8,250 | 9,116 | 5,630 | 11,383 | ||||||||||||||||||||||||
Right-of-use assets | 97,859 | 94,879 | 94,143 | 98,896 | 102,075 | ||||||||||||||||||||||||
Other assets | 362,048 | 374,111 | 375,575 | 355,532 | 291,411 | ||||||||||||||||||||||||
TOTAL ASSETS | $ | 10,048,733 | $ | 9,431,305 | $ | 9,158,906 | $ | 8,746,326 | $ | 8,830,501 | |||||||||||||||||||
LIABILITIES: | |||||||||||||||||||||||||||||
Deposits | $ | 8,595,366 | $ | 7,827,719 | $ | 7,427,397 | $ | 6,835,572 | $ | 7,241,476 | |||||||||||||||||||
Securities sold under agreements to repurchase | 53,472 | 42,544 | 46,623 | 45,319 | 53,398 | ||||||||||||||||||||||||
Federal funds purchased | — | — | — | 145,000 | — | ||||||||||||||||||||||||
Federal Home Loan Bank borrowings | 114,659 | 296,236 | 426,313 | 491,254 | 350,829 | ||||||||||||||||||||||||
Junior subordinated debentures | 106,363 | 106,363 | 106,363 | 106,363 | 106,363 | ||||||||||||||||||||||||
Lease liabilities | 112,339 | 108,932 | 108,234 | 113,574 | 117,214 | ||||||||||||||||||||||||
Other liabilities | 198,526 | 203,342 | 218,771 | 180,452 | 140,820 | ||||||||||||||||||||||||
TOTAL LIABILITIES | 9,180,725 | 8,585,136 | 8,333,701 | 7,917,534 | 8,010,100 | ||||||||||||||||||||||||
REDEEMABLE NONCONTROLLING INTERESTS (“RNCI”) | — | — | — | — | 1,383 | ||||||||||||||||||||||||
SHAREHOLDERS' EQUITY: | |||||||||||||||||||||||||||||
Common stock, $1.00 par value; authorized: 170,000,000 shares | 82,334 | 82,255 | 82,058 | 81,800 | 83,266 | ||||||||||||||||||||||||
Additional paid-in capital | 597,558 | 597,113 | 594,463 | 593,167 | 600,708 | ||||||||||||||||||||||||
Retained earnings | 156,431 | 136,394 | 118,647 | 131,761 | 127,469 | ||||||||||||||||||||||||
Accumulated other comprehensive income | 31,685 | 30,407 | 30,037 | 22,064 | 7,575 | ||||||||||||||||||||||||
TOTAL SHAREHOLDERS' EQUITY | 868,008 | 846,169 | 825,205 | 828,792 | 819,018 | ||||||||||||||||||||||||
TOTAL LIABILITIES, RNCI, AND SHAREHOLDERS' EQUITY | $ | 10,048,733 | $ | 9,431,305 | $ | 9,158,906 | $ | 8,746,326 | $ | 8,830,501 | |||||||||||||||||||
BOSTON PRIVATE FINANCIAL HOLDINGS, INC. | |||||||||||||||||||||||||||||
Consolidated Income Statements | |||||||||||||||||||||||||||||
Unaudited ($ in thousands, except share and per share data) | |||||||||||||||||||||||||||||
4Q20 | 3Q20 | 2Q20 | 1Q20 | 4Q19 | |||||||||||||||||||||||||
REVENUE: | |||||||||||||||||||||||||||||
Interest income | $ | 66,351 | $ | 65,453 | $ | 68,819 | $ | 73,082 | $ | 75,291 | |||||||||||||||||||
Interest expense | 6,944 | 7,629 | 9,881 | 15,825 | 19,166 | ||||||||||||||||||||||||
Net interest income | 59,407 | 57,824 | 58,938 | 57,257 | 56,125 | ||||||||||||||||||||||||
Provision/(credit) for loan losses 4 | (2,999) | (4,569) | 22,604 | 16,962 | (3,668) | ||||||||||||||||||||||||
Net interest income after Provision/(credit) for loan losses | 62,406 | 62,393 | 36,334 | 40,295 | 59,793 | ||||||||||||||||||||||||
Wealth management and trust fees 5 | 19,016 | 18,240 | 17,261 | 18,371 | 18,720 | ||||||||||||||||||||||||
Investment management fees | 1,173 | 1,393 | 1,770 | 1,925 | 2,554 | ||||||||||||||||||||||||
Private banking fee income | 4,304 | 1,320 | 2,395 | 2,490 | 2,924 | ||||||||||||||||||||||||
Gain on sale of loans, net | 718 | 1,006 | 204 | 100 | 557 | ||||||||||||||||||||||||
Total core fees and income | 25,211 | 21,959 | 21,630 | 22,886 | 24,755 | ||||||||||||||||||||||||
Total other income | 1,445 | 1,086 | 1,032 | (1,365) | 2,038 | ||||||||||||||||||||||||
TOTAL REVENUE 6 | 86,063 | 80,869 | 81,600 | 78,778 | 82,918 | ||||||||||||||||||||||||
NONINTEREST EXPENSE: | |||||||||||||||||||||||||||||
Salaries and employee benefits | 36,022 | 34,671 | 33,937 | 35,096 | 34,186 | ||||||||||||||||||||||||
Occupancy and equipment | 7,723 | 8,150 | 7,560 | 7,646 | 7,578 | ||||||||||||||||||||||||
Information systems | 8,633 | 7,096 | 7,113 | 6,725 | 6,476 | ||||||||||||||||||||||||
Professional services | 2,744 | 4,025 | 3,446 | 3,601 | 3,920 | ||||||||||||||||||||||||
Marketing and business development | 1,154 | 935 | 2,313 | 1,890 | 2,017 | ||||||||||||||||||||||||
Amortization of intangibles | 566 | 714 | 702 | 715 | 676 | ||||||||||||||||||||||||
FDIC insurance | 876 | 960 | 767 | — | (19) | ||||||||||||||||||||||||
Other 4 | 249 | 4,386 | 5,615 | 5,235 | 3,623 | ||||||||||||||||||||||||
TOTAL NONINTEREST EXPENSE | 57,967 | 60,937 | 61,453 | 60,908 | 58,457 | ||||||||||||||||||||||||
INCOME/(LOSS) BEFORE INCOME TAXES | 31,095 | 24,501 | (2,457) | 908 | 28,129 | ||||||||||||||||||||||||
Income tax expense | 6,124 | 1,821 | 841 | 102 | 6,788 | ||||||||||||||||||||||||
Net income/(loss) before attribution to noncontrolling interests | 24,971 | 22,680 | (3,298) | 806 | 21,341 | ||||||||||||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | — | 6 | 97 | ||||||||||||||||||||||||
NET INCOME/(LOSS) ATTRIBUTABLE TO THE COMPANY | $ | 24,971 | $ | 22,680 | $ | (3,298) | $ | 800 | $ | 21,244 | |||||||||||||||||||
Adjustments, treasury stock method 7 | — | — | — | 414 | 98 | ||||||||||||||||||||||||
NET INCOME/(LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ | 24,971 | $ | 22,680 | $ | (3,298) | $ | 1,214 | $ | 21,342 | |||||||||||||||||||
COMMON SHARE DATA: | |||||||||||||||||||||||||||||
Weighted average basic shares outstanding | 82,292,450 | 82,221,705 | 81,929,752 | 83,005,064 | 83,238,982 | ||||||||||||||||||||||||
Weighted average diluted shares outstanding 8 | 82,764,339 | 82,362,338 | 81,929,752 | 83,318,041 | 83,637,786 | ||||||||||||||||||||||||
Diluted earnings/(loss) per share | $ | 0.30 | $ | 0.28 | $ | (0.04) | $ | 0.01 | $ | 0.26 | |||||||||||||||||||
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"), KLS Professional Advisors Group, LLC ("KLS"), 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, 2019. |
BOSTON PRIVATE FINANCIAL HOLDINGS, INC. | ||||||||||||||
Consolidated Income Statements | ||||||||||||||
Unaudited ($ in thousands, except share and per share data) | ||||||||||||||
Year ended December 31, | ||||||||||||||
2020 | 2019 | |||||||||||||
REVENUE: | ||||||||||||||
Interest income | $ | 273,705 | $ | 308,447 | ||||||||||
Interest expense | 40,279 | 80,371 | ||||||||||||
Net interest income | 233,426 | 228,076 | ||||||||||||
Provision/(credit) for loan losses 4 | 31,998 | (3,564) | ||||||||||||
Net interest income after Provision/(credit) for loan losses | 201,428 | 231,640 | ||||||||||||
Wealth management and trust fees 5 | 72,888 | 75,757 | ||||||||||||
Investment management fees | 6,261 | 10,155 | ||||||||||||
Private banking fee income | 10,509 | 10,948 | ||||||||||||
Gain on sale of loans, net | 2,028 | 1,622 | ||||||||||||
Total core fees and income | 91,686 | 98,482 | ||||||||||||
Total other income | 2,198 | 3,065 | ||||||||||||
TOTAL REVENUE 6 | 327,310 | 329,623 | ||||||||||||
NONINTEREST EXPENSE: | ||||||||||||||
Salaries and employee benefits | 139,726 | 134,302 | ||||||||||||
Occupancy and equipment | 31,079 | 32,038 | ||||||||||||
Information systems | 29,567 | 22,642 | ||||||||||||
Professional services | 13,816 | 15,228 | ||||||||||||
Marketing and business development | 6,292 | 6,439 | ||||||||||||
Amortization of intangibles | 2,697 | 2,691 | ||||||||||||
FDIC insurance | 2,603 | 1,285 | ||||||||||||
Restructuring | — | 1,646 | ||||||||||||
Other 4 | 15,485 | 13,935 | ||||||||||||
TOTAL NONINTEREST EXPENSE | 241,265 | 230,206 | ||||||||||||
INCOME BEFORE INCOME TAXES | 54,047 | 102,981 | ||||||||||||
Income tax expense | 8,888 | 22,591 | ||||||||||||
Net income before attribution to noncontrolling interests | 45,159 | 80,390 | ||||||||||||
Less: Net income attributable to noncontrolling interests | 6 | 362 | ||||||||||||
NET INCOME ATTRIBUTABLE TO THE COMPANY | $ | 45,153 | $ | 80,028 | ||||||||||
Adjustments, treasury stock method 7 | 414 | 1,143 | ||||||||||||
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ | 45,567 | $ | 81,171 | ||||||||||
COMMON SHARE DATA | ||||||||||||||
Weighted average basic shares outstanding | 82,359,528 | 83,430,740 | ||||||||||||
Weighted average diluted shares outstanding 8 | 82,757,785 | 83,920,792 | ||||||||||||
Diluted earnings per share | $ | 0.55 | $ | 0.97 | ||||||||||
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"), KLS Professional Advisors Group, LLC ("KLS") through the effective date of its merger with BPW, and the trust operations of Boston Private Bank & Trust Company. 6 Total revenue is the sum of Net interest income, Total core fees and income, and Total other income. 7 Adjustments to Net income attributable to the Company to arrive at Net income 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, 2019. |
BOSTON PRIVATE FINANCIAL HOLDINGS, INC. | |||||||||||||||||||||||||||||
Consolidated Financial Highlights | |||||||||||||||||||||||||||||
Unaudited ($ in thousands, except share and per share data) | |||||||||||||||||||||||||||||
4Q20 | 3Q20 | 2Q20 | 1Q20 | 4Q19 | |||||||||||||||||||||||||
KEY STATISTICS: | |||||||||||||||||||||||||||||
Return on average assets (non-GAAP) 9 | 1.00 | % | 0.96 | % | (0.15) | % | 0.04 | % | 0.96 | % | |||||||||||||||||||
ROACE (non-GAAP) 9 | 11.50 | % | 10.68 | % | (1.58) | % | 0.39 | % | 10.29 | % | |||||||||||||||||||
ROATCE (non-GAAP) 9 | 12.69 | % | 11.88 | % | (1.43) | % | 0.72 | % | 11.51 | % | |||||||||||||||||||
Efficiency ratio (non-GAAP) 9 | 66.7 | % | 74.5 | % | 74.4 | % | 76.4 | % | 69.7 | % | |||||||||||||||||||
Noninterest income to total revenue | 31.0 | % | 28.5 | % | 27.8 | % | 27.3 | % | 32.3 | % | |||||||||||||||||||
Net interest margin | 2.52 | % | 2.61 | % | 2.75 | % | 2.76 | % | 2.70 | % | |||||||||||||||||||
Average loan to average deposit ratio | 86.1 | % | 94.6 | % | 100.5 | % | 99.0 | % | 101.6 | % | |||||||||||||||||||
Cost of total deposits | 0.26 | % | 0.33 | % | 0.41 | % | 0.72 | % | 0.86 | % | |||||||||||||||||||
Cost of interest-bearing deposits | 0.37 | % | 0.48 | % | 0.59 | % | 1.02 | % | 1.20 | % | |||||||||||||||||||
Cost of total funding | 0.32 | % | 0.37 | % | 0.50 | % | 0.83 | % | 0.99 | % | |||||||||||||||||||
Allowance for loan losses / Total loans | 1.14 | % | 1.17 | % | 1.22 | % | 0.97 | % | 1.03 | % | |||||||||||||||||||
Nonperforming loans / Total loans | 0.34 | % | 0.57 | % | 0.35 | % | 0.35 | % | 0.23 | % | |||||||||||||||||||
Net (charge-offs)/recoveries / Total loans 9 | (0.02) | % | (0.01) | % | (0.08) | % | (0.02) | % | 0.02 | % | |||||||||||||||||||
CAPITAL HIGHLIGHTS: | |||||||||||||||||||||||||||||
Tier 1 common equity 3 | $ | 773,017 | $ | 752,492 | $ | 731,316 | $ | 742,044 | $ | 745,926 | |||||||||||||||||||
Tier 1 capital 3 | $ | 873,039 | $ | 852,514 | $ | 831,338 | $ | 842,066 | $ | 846,337 | |||||||||||||||||||
Total capital 3 | $ | 956,789 | $ | 935,887 | $ | 913,936 | $ | 914,572 | $ | 919,573 | |||||||||||||||||||
Risk-weighted assets 3 | $ | 6,696,025 | $ | 6,659,752 | $ | 6,593,957 | $ | 6,627,339 | $ | 6,530,804 | |||||||||||||||||||
Average assets for leverage 3 | $ | 9,796,299 | $ | 9,237,942 | $ | 9,009,565 | $ | 8,691,254 | $ | 8,659,944 | |||||||||||||||||||
Tier 1 common equity ratio 3 | 11.54 | % | 11.30 | % | 11.09 | % | 11.20 | % | 11.42 | % | |||||||||||||||||||
Tier 1 risk-based capital ratio 3 | 13.04 | % | 12.80 | % | 12.61 | % | 12.71 | % | 12.96 | % | |||||||||||||||||||
Total risk-based capital ratio 3 | 14.29 | % | 14.05 | % | 13.86 | % | 13.80 | % | 14.08 | % | |||||||||||||||||||
Tier 1 leverage capital ratio 3 | 8.91 | % | 9.23 | % | 9.23 | % | 9.69 | % | 9.77 | % | |||||||||||||||||||
Total equity / Total assets | 8.64 | % | 8.97 | % | 9.01 | % | 9.48 | % | 9.27 | % | |||||||||||||||||||
Tangible common equity / Tangible assets (non-GAAP) | 8.03 | % | 8.33 | % | 8.34 | % | 8.77 | % | 8.57 | % | |||||||||||||||||||
End of period market price per share | $ | 8.45 | $ | 5.52 | $ | 6.88 | $ | 7.15 | $ | 12.03 | |||||||||||||||||||
End of period shares outstanding | 82,334,257 | 82,254,594 | 82,058,483 | 81,800,486 | 83,265,674 | ||||||||||||||||||||||||
Book value per common share | $ | 10.54 | $ | 10.29 | $ | 10.06 | $ | 10.13 | $ | 9.84 | |||||||||||||||||||
Tangible book value per share (non-GAAP) | $ | 9.73 | $ | 9.48 | $ | 9.25 | $ | 9.31 | $ | 9.02 | |||||||||||||||||||
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) | |||||||||||||||||||||||||||||
4Q20 | 3Q20 | 2Q20 | 1Q20 | 4Q19 | |||||||||||||||||||||||||
ASSETS UNDER MANAGEMENT AND ADVISORY ("AUM"): | |||||||||||||||||||||||||||||
Wealth Management and Trust | $ | 16,574,000 | $ | 15,581,000 | $ | 14,889,000 | $ | 13,497,000 | $ | 15,224,000 | |||||||||||||||||||
Other 2 | 526,000 | 672,000 | 1,067,000 | 1,016,000 | 1,544,000 | ||||||||||||||||||||||||
TOTAL AUM | $ | 17,100,000 | $ | 16,253,000 | $ | 15,956,000 | $ | 14,513,000 | $ | 16,768,000 | |||||||||||||||||||
AUM Rollforward: | |||||||||||||||||||||||||||||
Beginning balance | $ | 16,253,000 | $ | 15,956,000 | $ | 14,513,000 | $ | 16,768,000 | $ | 16,228,000 | |||||||||||||||||||
Net flows | (396,000) | (407,000) | (40,000) | 150,000 | (209,000) | ||||||||||||||||||||||||
Market returns | 1,243,000 | 704,000 | 1,483,000 | (2,405,000) | 749,000 | ||||||||||||||||||||||||
Ending balance | $ | 17,100,000 | $ | 16,253,000 | $ | 15,956,000 | $ | 14,513,000 | $ | 16,768,000 | |||||||||||||||||||
AUM Net Flows: | |||||||||||||||||||||||||||||
Wealth Management and Trust | $ | (128,000) | $ | (12,000) | $ | 60,000 | $ | 176,000 | $ | (114,000) | |||||||||||||||||||
Other 2 | (268,000) | (395,000) | (100,000) | (26,000) | (95,000) | ||||||||||||||||||||||||
TOTAL NET FLOWS | $ | (396,000) | $ | (407,000) | $ | (40,000) | $ | 150,000 | $ | (209,000) | |||||||||||||||||||
DEPOSITS: | |||||||||||||||||||||||||||||
Demand deposits (non-interest bearing) | $ | 2,481,676 | $ | 2,346,126 | $ | 2,293,864 | $ | 2,020,440 | $ | 1,971,013 | |||||||||||||||||||
Savings and NOW | 905,692 | 756,797 | 758,656 | 653,006 | 646,199 | ||||||||||||||||||||||||
Money market | 4,699,882 | 4,187,657 | 3,753,228 | 3,468,701 | 3,969,330 | ||||||||||||||||||||||||
Certificates of deposit | 508,116 | 537,139 | 621,649 | 693,425 | 654,934 | ||||||||||||||||||||||||
TOTAL DEPOSITS | $ | 8,595,366 | $ | 7,827,719 | $ | 7,427,397 | $ | 6,835,572 | $ | 7,241,476 | |||||||||||||||||||
LOANS: | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 558,343 | $ | 583,145 | $ | 565,748 | $ | 670,744 | $ | 694,034 | |||||||||||||||||||
Paycheck Protection Program | 312,356 | 371,496 | 370,034 | — | — | ||||||||||||||||||||||||
Commercial tax-exempt | 442,159 | 472,342 | 419,264 | 445,319 | 447,927 | ||||||||||||||||||||||||
Commercial real estate | 2,757,375 | 2,659,890 | 2,676,708 | 2,626,299 | 2,551,274 | ||||||||||||||||||||||||
Construction and land | 159,204 | 211,697 | 240,211 | 238,293 | 225,983 | ||||||||||||||||||||||||
Residential | 2,677,464 | 2,729,164 | 2,859,627 | 2,841,926 | 2,839,155 | ||||||||||||||||||||||||
Home equity | 77,364 | 81,797 | 84,588 | 89,350 | 83,657 | ||||||||||||||||||||||||
Consumer | 120,044 | 113,038 | 116,774 | 131,407 | 134,674 | ||||||||||||||||||||||||
TOTAL LOANS | $ | 7,104,309 | $ | 7,222,569 | $ | 7,332,954 | $ | 7,043,338 | $ | 6,976,704 | |||||||||||||||||||
2 Includes results from Dalton, Greiner, Hartman, Maher & Co, LLC ("DGHM") |
BOSTON PRIVATE FINANCIAL HOLDINGS, INC. | |||||||||||||||||||||||||||||
Provision and Asset Quality | |||||||||||||||||||||||||||||
Unaudited ($ in thousands) | |||||||||||||||||||||||||||||
4Q20 | 3Q20 | 2Q20 | 1Q20 | 4Q19 | |||||||||||||||||||||||||
PROVISION: | |||||||||||||||||||||||||||||
Provision/(credit) for loan losses | $ | (2,999) | $ | (4,569) | $ | 22,604 | $ | 16,962 | $ | (3,668) | |||||||||||||||||||
Reserve for unfunded loan commitments 4 | (2,386) | 1,750 | 2,829 | 1,827 | (23) | ||||||||||||||||||||||||
Total Provision/(credit) for credit losses | $ | (5,385) | $ | (2,819) | $ | 25,433 | $ | 18,789 | $ | (3,691) | |||||||||||||||||||
CHARGE-OFFS: | |||||||||||||||||||||||||||||
Loan charge-offs | $ | (511) | $ | (245) | $ | (1,546) | $ | (528) | $ | (285) | |||||||||||||||||||
Loan recoveries | 197 | 41 | 55 | 180 | 576 | ||||||||||||||||||||||||
NET (CHARGE-OFFS)/RECOVERIES | $ | (314) | $ | (204) | $ | (1,491) | $ | (348) | $ | 291 | |||||||||||||||||||
Net charge-offs to average loans (annualized) | (0.02) | % | (0.01) | % | (0.08) | % | (0.02) | % | 0.02 | % | |||||||||||||||||||
Net (Charge-offs)/Recoveries by Loan Type: | |||||||||||||||||||||||||||||
Commercial and industrial | $ | (474) | $ | (136) | $ | (337) | $ | (473) | $ | 118 | |||||||||||||||||||
Commercial real estate | 160 | — | — | — | 183 | ||||||||||||||||||||||||
Home equity | — | — | (1,157) | 132 | 4 | ||||||||||||||||||||||||
Consumer | — | (68) | 3 | (7) | (14) | ||||||||||||||||||||||||
NET (CHARGE-OFFS)/RECOVERIES | $ | (314) | $ | (204) | $ | (1,491) | $ | (348) | $ | 291 | |||||||||||||||||||
LOAN QUALITY DATA: | |||||||||||||||||||||||||||||
Special mention loans | $ | 187,237 | $ | 199,509 | $ | 191,882 | $ | 92,623 | $ | 52,026 | |||||||||||||||||||
Accruing classified loans 10 | 106,883 | 81,827 | 88,586 | 87,948 | 57,922 | ||||||||||||||||||||||||
Nonaccrual loans | 23,851 | 41,263 | 25,604 | 24,314 | 16,103 | ||||||||||||||||||||||||
Total classified | 130,734 | 123,090 | 114,190 | 112,262 | 74,025 | ||||||||||||||||||||||||
Criticized and classified loans | $ | 317,971 | $ | 322,599 | $ | 306,072 | $ | 204,885 | $ | 126,051 | |||||||||||||||||||
Loans 30-89 days past due and accruing 11 | $ | 19,862 | $ | 5,635 | $ | 5,535 | $ | 14,852 | $ | 25,945 | |||||||||||||||||||
4 Total Provision 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 | |||||||||||||||||||||||||||||||||
4Q20 | 3Q20 | 4Q19 | 4Q20 | 3Q20 | 4Q19 | 4Q20 | 3Q20 | 4Q19 | |||||||||||||||||||||||||||
INTEREST-EARNING ASSETS | |||||||||||||||||||||||||||||||||||
Cash and investments: | |||||||||||||||||||||||||||||||||||
Taxable investment securities | $ | 209,143 | $ | 201,515 | $ | 201,535 | $ | 849 | $ | 853 | $ | 869 | 1.62 | % | 1.69 | % | 1.72 | % | |||||||||||||||||
Non-taxable investment securities | 318,291 | 313,130 | 311,705 | 1,973 | 1,974 | 1,976 | 2.48 | % | 2.52 | % | 2.54 | % | |||||||||||||||||||||||
Mortgage-backed securities | 598,616 | 515,813 | 489,927 | 2,585 | 2,354 | 2,568 | 1.73 | % | 1.83 | % | 2.10 | % | |||||||||||||||||||||||
Short-term investments and other | 976,344 | 432,117 | 130,519 | 687 | 654 | 1,210 | 0.28 | % | 0.59 | % | 3.65 | % | |||||||||||||||||||||||
Total cash and investments | 2,102,394 | 1,462,575 | 1,133,686 | 6,094 | 5,835 | 6,623 | 1.16 | % | 1.59 | % | 2.33 | % | |||||||||||||||||||||||
Loans: 12 | |||||||||||||||||||||||||||||||||||
Commercial and industrial | 1,035,783 | 1,032,816 | 1,142,015 | 8,504 | 8,314 | 11,276 | 3.21 | % | 3.15 | % | 3.86 | % | |||||||||||||||||||||||
Paycheck Protection Program | 348,827 | 373,047 | — | 3,798 | 2,390 | — | 4.26 | % | 2.51 | % | — | % | |||||||||||||||||||||||
Commercial real estate | 2,711,396 | 2,652,770 | 2,562,380 | 24,096 | 23,546 | 28,285 | 3.48 | % | 3.47 | % | 4.32 | % | |||||||||||||||||||||||
Construction and land | 171,873 | 218,211 | 216,754 | 1,642 | 2,109 | 2,588 | 3.74 | % | 3.78 | % | 4.67 | % | |||||||||||||||||||||||
Residential | 2,720,733 | 2,809,871 | 2,934,786 | 21,041 | 22,089 | 24,275 | 3.09 | % | 3.14 | % | 3.31 | % | |||||||||||||||||||||||
Home equity | 79,485 | 84,226 | 84,632 | 676 | 623 | 965 | 3.38 | % | 2.94 | % | 4.53 | % | |||||||||||||||||||||||
Other consumer | 121,139 | 111,657 | 132,143 | 500 | 547 | 1,279 | 1.64 | % | 1.95 | % | 3.84 | % | |||||||||||||||||||||||
Total loans | 7,189,236 | 7,282,598 | 7,072,710 | 60,257 | 59,618 | 68,668 | 3.31 | % | 3.23 | % | 3.83 | % | |||||||||||||||||||||||
Total earning assets | 9,291,630 | 8,745,173 | 8,206,396 | 66,351 | 65,453 | 75,291 | 2.82 | % | 2.96 | % | 3.62 | % | |||||||||||||||||||||||
LESS: Allowance for loan losses | 84,679 | 89,370 | 75,283 | ||||||||||||||||||||||||||||||||
Cash and due from banks | 38,732 | 34,761 | 48,287 | ||||||||||||||||||||||||||||||||
Other assets | 651,008 | 655,999 | 559,350 | ||||||||||||||||||||||||||||||||
TOTAL AVERAGE ASSETS | $ | 9,896,691 | $ | 9,346,563 | $ | 8,738,750 | |||||||||||||||||||||||||||||
INTEREST-BEARING LIABILITIES | |||||||||||||||||||||||||||||||||||
Interest-bearing deposits: 13 | |||||||||||||||||||||||||||||||||||
Savings and NOW | $ | 793,923 | $ | 722,742 | $ | 644,502 | $ | 200 | $ | 197 | $ | 252 | 0.10 | % | 0.11 | % | 0.16 | % | |||||||||||||||||
Money market | 4,551,046 | 4,070,026 | 3,632,258 | 4,255 | 4,790 | 11,449 | 0.37 | % | 0.47 | % | 1.25 | % | |||||||||||||||||||||||
Certificates of deposit | 522,567 | 585,729 | 680,466 | 981 | 1,447 | 3,322 | 0.75 | % | 0.98 | % | 1.94 | % | |||||||||||||||||||||||
Total interest-bearing deposits 13 | 5,867,536 | 5,378,497 | 4,957,226 | 5,436 | 6,434 | 15,023 | 0.37 | % | 0.48 | % | 1.20 | % | |||||||||||||||||||||||
Junior subordinated debentures | 106,363 | 106,363 | 106,363 | 481 | 508 | 966 | 1.77 | % | 1.87 | % | 3.56 | % | |||||||||||||||||||||||
FHLB borrowings and other | 267,865 | 388,412 | 591,682 | 1,027 | 687 | 3,177 | 1.50 | % | 0.69 | % | 2.10 | % | |||||||||||||||||||||||
Total interest-bearing liabilities 13 | 6,241,764 | 5,873,272 | 5,655,271 | 6,944 | 7,629 | 19,166 | 0.44 | % | 0.52 | % | 1.34 | % | |||||||||||||||||||||||
Non-interest bearing demand deposits 13 | 2,482,969 | 2,321,223 | 2,001,714 | ||||||||||||||||||||||||||||||||
Payables and other liabilities | 310,820 | 309,462 | 261,503 | ||||||||||||||||||||||||||||||||
Total average liabilities | 9,035,553 | 8,503,957 | 7,918,488 | ||||||||||||||||||||||||||||||||
Redeemable noncontrolling interests | — | — | 1,446 | ||||||||||||||||||||||||||||||||
Average shareholders’ equity | 861,138 | 842,606 | 818,816 | ||||||||||||||||||||||||||||||||
TOTAL AVERAGE LIABILITIES, RNCI, AND SHAREHOLDERS’ EQUITY | $ | 9,896,691 | $ | 9,346,563 | $ | 8,738,750 | |||||||||||||||||||||||||||||
Net interest income | $ | 59,407 | $ | 57,824 | $ | 56,125 | |||||||||||||||||||||||||||||
Interest rate spread | 2.38 | % | 2.44 | % | 2.28 | % | |||||||||||||||||||||||||||||
Net interest margin | 2.52 | % | 2.61 | % | 2.70 | % | |||||||||||||||||||||||||||||
Average total deposits 13 | $ | 8,350,505 | $ | 7,699,720 | $ | 6,958,940 | 0.26 | % | 0.33 | % | 0.86 | % | |||||||||||||||||||||||
Average total deposits and borrowings 13 | $ | 8,724,733 | $ | 8,194,495 | $ | 7,656,985 | 0.32 | % | 0.37 | % | 0.99 | % | |||||||||||||||||||||||
12 Average loans includes Loans held for sale and Nonaccrual loans 13 Average total deposits is the sum of Average total interest-bearing deposits and Average non-interest bearing demand deposits. Average total deposits and borrowings is the sum of Average total interest-bearing liabilities and Average non-interest bearing demand deposits. |
BOSTON PRIVATE FINANCIAL HOLDINGS, INC. | ||||||||||||||||||||||||||
Average Balances, Yields, and Rates | ||||||||||||||||||||||||||
Unaudited ($ in thousands) | ||||||||||||||||||||||||||
Average Balance | Interest Income/Expense | Average Yield/Rate | ||||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | ||||||||||||||||||||||||
INTEREST-EARNING ASSETS | 12/31/20 | 12/31/19 | 12/31/20 | 12/31/19 | 12/31/20 | 12/31/19 | ||||||||||||||||||||
Cash and investments: | ||||||||||||||||||||||||||
Taxable investment securities | $ | 202,557 | $ | 217,653 | $ | 3,429 | $ | 4,113 | 1.69 | % | 1.89 | % | ||||||||||||||
Non-taxable investment securities | 315,903 | 307,005 | 7,950 | 7,702 | 2.52 | % | 2.51 | % | ||||||||||||||||||
Mortgage-backed securities | 535,302 | 502,949 | 10,292 | 10,793 | 1.92 | % | 2.15 | % | ||||||||||||||||||
Short-term investments and other | 437,177 | 110,877 | 2,994 | 4,259 | 0.69 | % | 3.84 | % | ||||||||||||||||||
Total cash and investments | 1,490,939 | 1,138,484 | 24,665 | 26,867 | 1.65 | % | 2.36 | % | ||||||||||||||||||
Loans: 12 | ||||||||||||||||||||||||||
Commercial and industrial | 1,064,512 | 1,101,635 | 37,250 | 44,949 | 3.50 | % | 4.08 | % | ||||||||||||||||||
Paycheck Protection Program | 251,016 | — | 7,761 | — | 3.11 | % | — | % | ||||||||||||||||||
Commercial real estate | 2,651,554 | 2,496,878 | 99,726 | 115,507 | 3.76 | % | 4.63 | % | ||||||||||||||||||
Construction and land | 214,074 | 206,624 | 8,574 | 10,198 | 4.00 | % | 4.94 | % | ||||||||||||||||||
Residential | 2,810,786 | 2,983,173 | 89,677 | 101,122 | 3.19 | % | 3.39 | % | ||||||||||||||||||
Home equity | 84,502 | 88,917 | 2,901 | 4,353 | 3.43 | % | 4.90 | % | ||||||||||||||||||
Other consumer | 122,312 | 129,701 | 3,151 | 5,451 | 2.58 | % | 4.20 | % | ||||||||||||||||||
Total loans | 7,198,756 | 7,006,928 | 249,040 | 281,580 | 3.46 | % | 4.02 | % | ||||||||||||||||||
Total earning assets | 8,689,695 | 8,145,412 | 273,705 | 308,447 | 3.15 | % | 3.79 | % | ||||||||||||||||||
LESS: Allowance for loan losses | 73,636 | 74,969 | ||||||||||||||||||||||||
Cash and due from banks | 40,800 | 47,286 | ||||||||||||||||||||||||
Other assets | 628,049 | 527,269 | ||||||||||||||||||||||||
TOTAL AVERAGE ASSETS | $ | 9,284,908 | $ | 8,644,998 | ||||||||||||||||||||||
INTEREST-BEARING LIABILITIES | ||||||||||||||||||||||||||
Interest-bearing deposits: 13 | ||||||||||||||||||||||||||
Savings and NOW | $ | 709,357 | $ | 654,712 | $ | 816 | $ | 1,099 | 0.12 | % | 0.17 | % | ||||||||||||||
Money market | 4,014,481 | 3,395,842 | 23,550 | 43,521 | 0.59 | % | 1.28 | % | ||||||||||||||||||
Certificates of deposit | 611,829 | 730,693 | 7,635 | 14,463 | 1.25 | % | 1.98 | % | ||||||||||||||||||
Total interest-bearing deposits 13 | 5,335,667 | 4,781,247 | 32,001 | 59,083 | 0.60 | % | 1.24 | % | ||||||||||||||||||
Junior subordinated debentures | 106,363 | 106,363 | 2,670 | 4,189 | 2.50 | % | 3.94 | % | ||||||||||||||||||
FHLB borrowings and other | 430,176 | 748,628 | 5,608 | 17,099 | 1.30 | % | 2.28 | % | ||||||||||||||||||
Total interest-bearing liabilities 13 | 5,872,206 | 5,636,238 | 40,279 | 80,371 | 0.69 | % | 1.43 | % | ||||||||||||||||||
Non-interest bearing demand deposits 13 | 2,266,801 | 1,962,951 | ||||||||||||||||||||||||
Payables and other liabilities | 299,301 | 247,163 | ||||||||||||||||||||||||
Total average liabilities | 8,438,308 | 7,846,352 | ||||||||||||||||||||||||
Redeemable noncontrolling interests | 308 | 1,593 | ||||||||||||||||||||||||
Average shareholders’ equity | 846,292 | 797,053 | ||||||||||||||||||||||||
TOTAL AVERAGE LIABILITIES, RNCI, AND SHAREHOLDERS’ EQUITY | $ | 9,284,908 | $ | 8,644,998 | ||||||||||||||||||||||
Net interest income | $ | 233,426 | $ | 228,076 | ||||||||||||||||||||||
Interest rate spread | 2.46 | % | 2.36 | % | ||||||||||||||||||||||
Net interest margin | 2.69 | % | 2.80 | % | ||||||||||||||||||||||
Average total deposits 13 | $ | 7,602,468 | $ | 6,744,198 | 0.42 | % | 0.88 | % | ||||||||||||||||||
Average total deposits and borrowings 13 | $ | 8,139,007 | $ | 7,599,189 | 0.49 | % | 1.06 | % | ||||||||||||||||||
12 Average loans includes Loans held for sale and Nonaccrual loans 13 Average total deposits is the sum of Average total interest-bearing deposits and Average non-interest bearing demand deposits. Average total deposits and borrowings is the sum of Average total interest-bearing liabilities and Average non-interest bearing demand deposits. |
BOSTON PRIVATE FINANCIAL HOLDINGS, INC. | |||||||||||||||||||||||||||||
Regional Loan Data 14 | |||||||||||||||||||||||||||||
Unaudited ($ in thousands) | |||||||||||||||||||||||||||||
4Q20 | 3Q20 | 2Q20 | 1Q20 | 4Q19 | |||||||||||||||||||||||||
New England | $ | 3,593,925 | $ | 3,669,746 | $ | 3,781,603 | $ | 3,724,959 | $ | 3,776,747 | |||||||||||||||||||
Northern California | 1,776,682 | 1,763,556 | 1,741,255 | 1,618,668 | 1,532,786 | ||||||||||||||||||||||||
Southern California | 1,733,702 | 1,789,267 | 1,810,096 | 1,699,711 | 1,667,171 | ||||||||||||||||||||||||
Total loans | $ | 7,104,309 | $ | 7,222,569 | $ | 7,332,954 | $ | 7,043,338 | $ | 6,976,704 | |||||||||||||||||||
Loans (charged-off)/recovered, net: | |||||||||||||||||||||||||||||
New England | $ | 162 | $ | (111) | $ | 7 | $ | 15 | $ | 414 | |||||||||||||||||||
Northern California | (147) | — | 3 | 122 | (10) | ||||||||||||||||||||||||
Southern California | (329) | (93) | (1,501) | (485) | (113) | ||||||||||||||||||||||||
Total net loans (charged-off)/recovered | $ | (314) | $ | (204) | $ | (1,491) | $ | (348) | $ | 291 | |||||||||||||||||||
Special mention loans: | |||||||||||||||||||||||||||||
New England | $ | 94,235 | $ | 103,060 | $ | 83,026 | $ | 61,741 | $ | 21,691 | |||||||||||||||||||
Northern California | 64,361 | 63,192 | 75,609 | 5,947 | 5,227 | ||||||||||||||||||||||||
Southern California | 28,641 | 33,257 | 33,247 | 24,935 | 25,108 | ||||||||||||||||||||||||
Total special mention loans | $ | 187,237 | $ | 199,509 | $ | 191,882 | $ | 92,623 | $ | 52,026 | |||||||||||||||||||
Accruing classified loans: | |||||||||||||||||||||||||||||
New England | $ | 89,582 | $ | 74,682 | $ | 53,124 | $ | 50,483 | $ | 20,428 | |||||||||||||||||||
Northern California | 340 | 4,589 | 21,712 | 24,843 | 24,946 | ||||||||||||||||||||||||
Southern California | 16,961 | 2,556 | 13,750 | 12,622 | 12,548 | ||||||||||||||||||||||||
Total accruing classified loans | $ | 106,883 | $ | 81,827 | $ | 88,586 | $ | 87,948 | $ | 57,922 | |||||||||||||||||||
Nonaccruing loans: | |||||||||||||||||||||||||||||
New England | $ | 12,643 | $ | 11,807 | $ | 11,630 | $ | 11,965 | $ | 9,764 | |||||||||||||||||||
Northern California | 6,331 | 25,133 | 9,459 | 6,575 | 319 | ||||||||||||||||||||||||
Southern California | 4,877 | 4,323 | 4,515 | 5,774 | 6,020 | ||||||||||||||||||||||||
Total nonaccruing loans | $ | 23,851 | $ | 41,263 | $ | 25,604 | $ | 24,314 | $ | 16,103 | |||||||||||||||||||
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) | |||||||||||||||||||||||||||||
4Q20 | 3Q20 | 2Q20 | 1Q20 | 4Q19 | |||||||||||||||||||||||||
ROACE AND ROATCE: | |||||||||||||||||||||||||||||
Net income/(loss) attributable to the Company (GAAP) (A) | $ | 24,971 | $ | 22,680 | $ | (3,298) | $ | 800 | $ | 21,244 | |||||||||||||||||||
ADD: Amortization of intangibles, net of tax | 447 | 564 | 555 | 565 | 534 | ||||||||||||||||||||||||
Tangible common net income/(loss) (non-GAAP) (B) | $ | 25,418 | $ | 23,244 | $ | (2,743) | $ | 1,365 | $ | 21,778 | |||||||||||||||||||
Total average shareholders’ equity (C) | $ | 861,138 | $ | 842,606 | $ | 834,882 | $ | 838,935 | $ | 818,816 | |||||||||||||||||||
LESS: Average goodwill and intangibles, net | (66,253) | (66,246) | (66,877) | (67,586) | (68,031) | ||||||||||||||||||||||||
Average tangible common equity (non-GAAP) (D) | $ | 794,885 | $ | 776,360 | $ | 768,005 | $ | 771,349 | $ | 750,785 | |||||||||||||||||||
ROACE (annualized) (A/C) | 11.50 | % | 10.68 | % | (1.58) | % | 0.39 | % | 10.29 | % | |||||||||||||||||||
ROATCE (annualized) (B/D) | 12.69 | % | 11.88 | % | (1.43) | % | 0.72 | % | 11.51 | % | |||||||||||||||||||
PRE-TAX, PRE-PROVISION INCOME: | |||||||||||||||||||||||||||||
Income/(loss) before income taxes (GAAP) | $ | 31,095 | $ | 24,501 | $ | (2,457) | $ | 908 | $ | 28,129 | |||||||||||||||||||
ADD BACK: Provision/(credit) for loan losses | (2,999) | (4,569) | 22,604 | 16,962 | (3,668) | ||||||||||||||||||||||||
Pre-tax, pre-provision income (non-GAAP) | $ | 28,096 | $ | 19,932 | $ | 20,147 | $ | 17,870 | $ | 24,461 | |||||||||||||||||||
TANGIBLE COMMON EQUITY: | |||||||||||||||||||||||||||||
Total shareholders’ equity (GAAP) | $ | 868,008 | $ | 846,169 | $ | 825,205 | $ | 828,792 | $ | 819,018 | |||||||||||||||||||
LESS: Goodwill and intangibles, net | (66,663) | (66,505) | (66,542) | (67,244) | (67,959) | ||||||||||||||||||||||||
Tangible common equity (non-GAAP) (A) | $ | 801,345 | $ | 779,664 | $ | 758,663 | $ | 761,548 | $ | 751,059 | |||||||||||||||||||
Total assets (GAAP) | $ | 10,048,733 | $ | 9,431,305 | $ | 9,158,906 | $ | 8,746,326 | $ | 8,830,501 | |||||||||||||||||||
LESS: Goodwill and intangibles, net | (66,663) | (66,505) | (66,542) | (67,244) | (67,959) | ||||||||||||||||||||||||
Tangible assets (non-GAAP) (B) | $ | 9,982,070 | $ | 9,364,800 | $ | 9,092,364 | $ | 8,679,082 | $ | 8,762,542 | |||||||||||||||||||
End of period shares outstanding (C) | 82,334,257 | 82,254,594 | 82,058,483 | 81,800,486 | 83,265,674 | ||||||||||||||||||||||||
Tangible common equity/ Tangible assets (non-GAAP) (A/B) | 8.03 | % | 8.33 | % | 8.34 | % | 8.77 | % | 8.57 | % | |||||||||||||||||||
Tangible book value per share (non-GAAP) (A/C) | $9.73 | $9.48 | $9.25 | $9.31 | $9.02 | ||||||||||||||||||||||||
AVERAGE LOANS: | |||||||||||||||||||||||||||||
Total loans | $ | 7,189,236 | $ | 7,282,598 | $ | 7,288,644 | $ | 7,033,733 | $ | 7,072,710 | |||||||||||||||||||
LESS: PPP | (348,827) | (373,047) | (283,619) | — | — | ||||||||||||||||||||||||
Total loans, excluding PPP (non-GAAP) | $ | 6,840,409 | $ | 6,909,551 | $ | 7,005,025 | $ | 7,033,733 | $ | 7,072,710 | |||||||||||||||||||
Total loan yields, excluding PPP (non-GAAP) | 3.26 | % | 3.27 | % | 3.47 | % | 3.75 | % | 3.83 | % | |||||||||||||||||||
BOSTON PRIVATE FINANCIAL HOLDINGS, INC. | |||||||||||||||||||||||||||||
Reconciliations of Non-GAAP Financial Measures | |||||||||||||||||||||||||||||
Unaudited ($ in thousands, except share and per share data) | |||||||||||||||||||||||||||||
4Q20 | 3Q20 | 2Q20 | 1Q20 | 4Q19 | |||||||||||||||||||||||||
RETURN ON AVERAGE ASSETS: | |||||||||||||||||||||||||||||
Net income/(loss) attributable to the Company (GAAP) (A) | $ | 24,971 | $ | 22,680 | $ | (3,298) | $ | 800 | $ | 21,244 | |||||||||||||||||||
Average assets (non-GAAP) (B) | 9,896,691 | 9,346,563 | 9,109,201 | 8,779,391 | 8,738,750 | ||||||||||||||||||||||||
Return on average assets (annualized) (non-GAAP) (A/B) | 1.00 | % | 0.96 | % | (0.15) | % | 0.04 | % | 0.96 | % | |||||||||||||||||||
EFFICIENCY RATIO: | |||||||||||||||||||||||||||||
Total noninterest expense (GAAP) (A) | $ | 57,967 | $ | 60,937 | $ | 61,453 | $ | 60,908 | $ | 58,457 | |||||||||||||||||||
LESS: Amortization of intangibles | 566 | 714 | 702 | 715 | 676 | ||||||||||||||||||||||||
Total noninterest expense, excluding Amortization of intangibles (non-GAAP) (B) | $ | 57,401 | $ | 60,223 | $ | 60,751 | $ | 60,193 | $ | 57,781 | |||||||||||||||||||
Net interest income (GAAP) | $ | 59,407 | $ | 57,824 | $ | 58,938 | $ | 57,257 | $ | 56,125 | |||||||||||||||||||
Total core fees and income (GAAP) | 25,211 | 21,959 | 21,630 | 22,886 | 24,755 | ||||||||||||||||||||||||
Total other income (GAAP) | 1,445 | 1,086 | 1,032 | (1,365) | 2,038 | ||||||||||||||||||||||||
Total revenue (GAAP) (C) | $ | 86,063 | $ | 80,869 | $ | 81,600 | $ | 78,778 | $ | 82,918 | |||||||||||||||||||
Efficiency ratio (GAAP) (A/C) | 67.4 | % | 75.4 | % | 75.3 | % | 77.3 | % | 70.5 | % | |||||||||||||||||||
Efficiency ratio, excluding Amortization of intangibles (non-GAAP) (B/C) | 66.7 | % | 74.5 | % | 74.4 | % | 76.4 | % | 69.7 | % | |||||||||||||||||||
NET INCOME/(LOSS) ATTRIBUTABLE TO THE COMPANY: | |||||||||||||||||||||||||||||
Net income/(loss) attributable to the Company (GAAP) | $ | 24,971 | $ | 22,680 | $ | (3,298) | $ | 800 | $ | 21,244 | |||||||||||||||||||
LESS: Gain on fair value of contingent considerations receivable 15 | — | 891 | — | — | 1,109 | ||||||||||||||||||||||||
Tax effect at statutory rate | — | 258 | — | — | 322 | ||||||||||||||||||||||||
Net income/(loss) attributable to the Company (non-GAAP) | $ | 24,971 | $ | 22,047 | $ | (3,298) | $ | 800 | $ | 20,457 | |||||||||||||||||||
NET INCOME/(LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS: | |||||||||||||||||||||||||||||
Net income/(loss) attributable to common shareholders (GAAP) | $ | 24,971 | $ | 22,680 | $ | (3,298) | $ | 1,214 | $ | 21,342 | |||||||||||||||||||
LESS: Gain on fair value of contingent considerations receivable 15 | — | 891 | — | — | 1,109 | ||||||||||||||||||||||||
Tax effect at statutory rate | — | 258 | — | — | 322 | ||||||||||||||||||||||||
Net income/(loss) attributable to the common shareholders, treasury stock method, excluding notable items (non-GAAP) | $ | 24,971 | $ | 22,047 | $ | (3,298) | $ | 1,214 | $ | 20,555 | |||||||||||||||||||
Weighted average diluted shares outstanding | 82,764,339 | 82,362,338 | 81,929,752 | 83,318,041 | 83,637,786 | ||||||||||||||||||||||||
Diluted earnings/(loss) per share (GAAP) | $ | 0.30 | $ | 0.28 | $ | (0.04) | $ | 0.01 | $ | 0.26 | |||||||||||||||||||
Diluted earnings/(loss) per share, excluding notable items (non-GAAP) | $ | 0.30 | $ | 0.27 | $ | (0.04) | $ | 0.01 | $ | 0.25 | |||||||||||||||||||
Average common equity (non-GAAP) | $ | 861,138 | $ | 842,606 | $ | 834,882 | $ | 838,935 | $ | 818,816 | |||||||||||||||||||
Average tangible common equity (non-GAAP) | $ | 794,885 | $ | 776,360 | $ | 768,005 | $ | 771,349 | $ | 750,785 | |||||||||||||||||||
ROACE, excluding notable items (non-GAAP) | 11.50 | % | 10.38 | % | (1.58) | % | 0.39 | % | 9.91 | % | |||||||||||||||||||
ROATCE, excluding notable items (non-GAAP) | 12.69 | % | 11.55 | % | (1.43) | % | 0.72 | % | 11.09 | % | |||||||||||||||||||
Pre-tax, pre-provision income (non-GAAP) | $ | 28,096 | $ | 19,932 | $ | 20,147 | $ | 17,870 | $ | 24,461 | |||||||||||||||||||
LESS: Gain on fair value of contingent considerations receivable 15 | — | 891 | — | — | 1,109 | ||||||||||||||||||||||||
Pre-tax, pre-provision income, excluding notable items (non-GAAP) | $ | 28,096 | $ | 19,041 | $ | 20,147 | $ | 17,870 | $ | 23,352 | |||||||||||||||||||
15 In the third quarter of 2020 and fourth quarter of 2019, there was a gain of $0.9 million and $1.1 million, respectively, related to the revaluation of a receivable from the divestiture of former affiliate, Bingham, Osborn & Scarborough, LLC ("BOS"). |
BOSTON PRIVATE FINANCIAL HOLDINGS, INC. | |||||||||||||||||||||||||||||||||||
Reconciliations of Non-GAAP measures: Operating Adjustments | |||||||||||||||||||||||||||||||||||
Unaudited ($ in thousands, except share and per share data) | |||||||||||||||||||||||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||||||||||||||||||||||
December 31, 2020 | December 31, 2020 | ||||||||||||||||||||||||||||||||||
GAAP or Reported Value | Notable Items | Operating Basis (Non-GAAP) | GAAP or Reported Value | Notable Items | Operating Basis (Non-GAAP) | ||||||||||||||||||||||||||||||
Total revenue | $ | 86,063 | $ | — | $ | 86,063 | $ | 327,310 | $ | (891) | $ | 326,419 | |||||||||||||||||||||||
Total noninterest expense | 57,967 | — | 57,967 | 241,265 | — | 241,265 | |||||||||||||||||||||||||||||
Pre-tax, pre-provision income | 28,096 | — | 28,096 | 86,045 | (891) | 85,154 | |||||||||||||||||||||||||||||
Income before income taxes | 31,095 | — | 31,095 | 54,047 | (891) | 53,156 | |||||||||||||||||||||||||||||
Income tax (expense)/benefit | 6,124 | — | 6,124 | 8,888 | (258) | 8,630 | |||||||||||||||||||||||||||||
Net income attributable to the Company | $ | 24,971 | $ | — | $ | 24,971 | $ | 45,153 | $ | (633) | $ | 44,520 | |||||||||||||||||||||||
Net income attributable to common shareholders | $ | 24,971 | $ | — | $ | 24,971 | $ | 45,567 | $ | (633) | $ | 44,934 | |||||||||||||||||||||||
Weighted average diluted shares outstanding | 82,764,339 | 82,764,339 | 82,764,339 | 82,757,785 | 82,757,785 | 82,757,785 | |||||||||||||||||||||||||||||
Diluted earnings per share | $ | 0.30 | $ | — | $ | 0.30 | $ | 0.55 | $ | (0.01) | $ | 0.54 | |||||||||||||||||||||||
Average common equity | 861,138 | 861,138 | 846,292 | 846,292 | |||||||||||||||||||||||||||||||
ROACE | 11.50 | % | 11.50 | % | 5.34 | % | 5.26 | % | |||||||||||||||||||||||||||
Average tangible common equity | 794,885 | 794,885 | 779,555 | 779,555 | |||||||||||||||||||||||||||||||
ROATCE | 12.69 | % | 12.69 | % | 6.07 | % | 5.98 | % | |||||||||||||||||||||||||||
Effective tax rate | 19.7 | % | 19.7 | % | 16.4 | % | 16.2 | % | |||||||||||||||||||||||||||
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