BOSTON PRIVATE FINANCIAL HOLDINGS, INC. (PARENT COMPANY ONLY)

12 Months Ended

Dec. 31, 2020

Condensed Balance Sheets


	December 31, 2020		December 31, 2019
	(In thousands)
Assets:
Cash and cash equivalents	$	70,269	$	51,324
Investment in wholly-owned and majority-owned subsidiaries	887,847		857,062


Investment in partnerships and trusts	6,340		6,340

Other assets	23,036		27,453
Total assets	$	987,492	$	942,179
Liabilities:
Junior subordinated debentures	$	106,363	$	106,363
Deferred income taxes	3,665		2,895
Other liabilities	9,456		12,520
Total liabilities	119,484		121,778
Redeemable Noncontrolling Interests (1)	—		1,383
Total Shareholders’ Equity	868,008		819,018
Total liabilities, redeemable noncontrolling interests and shareholders’ equity	$	987,492	$	942,179

___________________

(1)Includes noncontrolling interests, if any, and the maximum redemption value of Redeemable noncontrolling interests.

Condensed Statements of Operations


	Year ended December 31,
	2020		2019		2018
	(In thousands)
Income:
Interest income	$	31	$	62	$	107

Dividends from subsidiaries	57,095		54,606		45,448


Gain on sale of affiliate	—		—		18,142
Other	900		1,557		59
Total revenue	58,026		56,225		63,756
Operating Expense:
Salaries and employee benefits	1,447		2,106		2,121
Professional services	29		1,241		1,381
Interest expense	2,670		4,189		3,925

Other	2,378		2,185		1,406
Total operating expense	6,524		9,721		8,833
Income before income taxes	51,502		46,504		54,923
Income tax expense/(benefit)	(896)		(2,639)		14,628
Net income from discontinued operations	—		—		2,002
Income before equity in undistributed earnings of subsidiaries	52,398		49,143		42,297
Equity/(loss) in undistributed earnings of subsidiaries	(7,245)		30,885		38,087
Net income attributable to the Company	$	45,153	$	80,028	$	80,384

Condensed Statements of Cash Flows


	Year ended December 31,
	2020		2019		2018
	(In thousands)
Cash flows from operating activities:
Net income attributable to the Company	$	45,153	$	80,028	$	80,384
Net income from discontinued operations	—		—		2,002
Net income from continuing operations	45,153		80,028		78,382
Adjustments to reconcile Net income from continuing operations to Net cash provided by operating activities:
Equity in earnings of subsidiaries:	(49,850)		(85,480)		(83,232)


	Year ended December 31,
	2020		2019		2018
	(In thousands)
Dividends from subsidiaries:	57,095		54,606		45,448




Depreciation and amortization	34		201		(186)
Gain on sale of affiliate	—		—		(18,142)
Net decrease/(increase) in other operating activities	920		(8,108)		13,181
Net cash provided by operating activities of continuing operations	53,352		41,247		35,451
Net cash provided by operating activities of discontinued operations	—		—		2,002
Net cash provided by operating activities	53,352		41,247		37,453
Cash flows from investing activities:
Contingent consideration from divestitures	4,835		4,507		1,233


Capital investments in subsidiaries	(73)		(78)		(96)
Cash received from divestitures	—		—		52,981



Net cash provided by investing activities	4,762		4,429		54,118
Cash flows from financing activities:


Redemption of Series D preferred stock	—		—		(50,000)
Equity sales in minority-owned subsidiaries	—		—		1,021
Repurchase of common stock	(12,807)		(7,193)		(20,000)
Dividends paid to common shareholders	(29,683)		(40,380)		(40,685)
Dividends paid to preferred shareholders	—		—		(1,738)

Proceeds from stock option exercises	56		562		1,661
Proceeds from issuance of common stock, net	2,243		2,413		434
Other equity adjustments	1,022		(842)		2,463


Net cash (used in) financing activities	(39,169)		(45,440)		(106,844)
Net (decrease)/increase in Cash and cash equivalents	18,945		236		(15,273)
Cash and cash equivalents at beginning of year	51,324		51,088		66,361
Cash and cash equivalents at end of year	$	70,269	$	51,324	$	51,088