-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, EWr2qEQDinny66Tk+RvtYBWMGBanYC8hIChnXkUYMk7bEkTrfWyAR0wPsbUlafuZ ADlTIXMQEL4HqR3+4CWJ9w== 0000912057-02-027857.txt : 20020719 0000912057-02-027857.hdr.sgml : 20020719 20020718191734 ACCESSION NUMBER: 0000912057-02-027857 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20020715 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20020719 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BOSTON PRIVATE FINANCIAL HOLDINGS INC CENTRAL INDEX KEY: 0000821127 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 042976299 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-17089 FILM NUMBER: 02706083 BUSINESS ADDRESS: STREET 1: 10 POST OFFICE SQ CITY: BOSTON STATE: MA ZIP: 02109 BUSINESS PHONE: 6175561900 MAIL ADDRESS: STREET 1: 10 POST OFFICE SQUARE CITY: BOSTON STATE: MA ZIP: 02109 FORMER COMPANY: FORMER CONFORMED NAME: BOSTON PRIVATE BANCORP INC DATE OF NAME CHANGE: 19920703 8-K 1 a2084518z8-k.txt FORM 8-K SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ------------------------------- FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ---------------------------------- DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): JULY 15, 2002 ------------- BOSTON PRIVATE FINANCIAL HOLDINGS, INC. ------------------------------------------------------------------------------ (Exact name of registrant as specified in charter) MASSACHUSETTS 0-17089 04-2976299 - -------------------------------------------------------------------------------------------------------- (STATE OR OTHER JURISDICTION (COMMISSION FILE NUMBER) (IRS EMPLOYER OF INCORPORATION) IDENTIFICATION NO.)
TEN POST OFFICE SQUARE, BOSTON, MASSACHUSETTS 02109 - ------------------------------------------------------------------------------- (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE) (617) 912-1900 ---------------------------------------------------- (REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE) ITEM 5. OTHER EVENTS. The information in Exhibit 99.1 is incorporated herein by reference. ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS. (c) EXHIBITS. EXHIBIT NO. DESCRIPTION - ----------- ----------- 99.1 Press Release issued by Boston Private Financial Holdings, Inc., dated July 15, 2002 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. BOSTON PRIVATE FINANCIAL HOLDINGS, INC. Date: July 15, 2002 /s/ WALTER M. PRESSEY --------------------------------------- Walter M. Pressey President and Chief Financial Officer EXHIBIT INDEX EXHIBIT NO. DESCRIPTION - ----------- ----------- 99.1 Press Release issued by Boston Private Financial Holdings, Inc., dated July 15, 2002 EX-99.1 3 a2084518zex-99_1.txt EXHIBIT 99.1 Exhibit 99.1 FOR IMMEDIATE RELEASE Contact: Walter M. Pressey President and CFO Boston Private Financial Holdings (617) 912-1921 www.bostonprivate.com --------------------- Peter A. Morrissey, Jr. Morrissey & Company (617) 523-4141 ================================================================================ BOSTON PRIVATE REPORTS QUARTERLY EARNINGS FINANCIAL PERFORMANCE VALIDATES BUSINESS MODEL ================================================================================ BOSTON, MA, JULY 15, 2002 - Boston Private Financial Holdings, Inc. (NASDAQ: BPFH) today announced strong earnings for the second quarter of 2002. BPFH's financial performance reflects its continued growth and the positive impact of this national wealth management company's strategic diversification strategy. The Company also announced its eleventh consecutive cash dividend to shareholders. FINANCIAL RESULTS For the three months ended June 30, 2002, Boston Private is reporting earnings per share of $0.27 on a fully diluted basis, compared to $0.22 for the comparable period last year, a 23% increase. For the first six months of 2002, the Company has earned $0.52 per share compared to $0.45 a year ago. First-half net income in 2002 was $12 million on revenues of $57 million. Assets under management at June 30th were $6.5 billion, down slightly from the March 31st level of $6.8 billion, but essentially flat compared to December 31, 2001. The Company's consolidated private banking balance sheet grew during the period ending June 30, 2002, to $1.7 billion, up $122 million from March 31st. Timothy L. Vaill, Chairman and Chief Executive Officer, said, "In light of the considerable uncertainties faced in the economy and the financial markets in the first half of 2002, we are pleased with our earnings performance this quarter and for the year to date. Diversification of our product lines, our investment styles and our geographic markets is at the core of our business plan and this diversification, as in years past, has contributed to our growth achievements during this period. With undulating stock markets impacting 1 asset management values, private banking revenues and financial planning fees have made a significant contribution to our results. But I am pleased that we have held our own in the asset management business due primarily to new business growth and our reputation for exceptional client service," he continued. "Our determined focus on our business plan is steadfast and ongoing," Mr. Vaill concluded. Financial planning fees for the first half were up 32% over 2001, to $3 million, reflecting continued success of the family office services offered by RINET Company, Boston Private's Boston-based financial planning firm. In addition, private banking total deposits and loan volumes increased during the second quarter resulting in record levels on June 30th of $1.3 billion and $1.2 billion, respectively. Both Boston Private Bank, based in New England, and Borel Private Bank, based in Northern California, reduced their cost of funds resulting in an increased consolidated net interest margin of 4.30%, compared to 4.17% at this point one year ago. According to Walter M. Pressey, Boston Private's President and Chief Financial Officer, "Our business model, which calls for balanced diversification, has been the basis of our seven year growth in revenues and profits. In the second quarter, the strength of our financial planning and private banking businesses more than offset reduced growth in fee income resulting from lower equity markets," according to Mr. Pressey. "In addition," he added, "the performance of our loan portfolio has been excellent and our non-performing loan ratio continues to be below national averages." The Company reported that the ratio of non-performing loans to total loans was 7 basis points on June 30, 2002, an improvement compared to 13 basis points reported March 31, 2002 and 11 basis points on June 30, 2001. The return on average equity increased in the second quarter to 16.85% compared to the first quarter level of 16.16%. Stockholders' equity totaled $153 million at June 30, 2002, and the ratio of stockholders' equity to total assets held steady from year-end at 9.0%. The Company commented specifically on other strategic growth and synergies within the Boston Private enterprise. "Thus far 2002 has been an excellent year for many of our operating companies as demonstrated by their individual growth rates," said Mr. Pressey. "In particular, both RINET Company and Boston Private Bank have outpaced their 15% growth targets. New business in both companies has been exceptionally strong." Mr. Pressey continued, "There have also been some excellent developments within our network both regionally and nationally. For example, our Northern California region is launching a managed trust product whereby the investments will be the responsibility of Sand Hill Advisors while Borel Private Bank will be the fiduciary. In addition, Borel will be opening a private banking office in Palo Alto this fall to expand its reach on the Peninsula and to leverage the relationship with Sand Hill Advisors. Nationally, Boston Private Bank will be providing residential mortgage processing for Borel, and is supporting the California bank's successful venture capital marketing and deposit sales efforts. Finally, within New England, Boston Private Bank is now providing private banking services for clients of all other regional affiliates. Thus we think that the opportunities for our companies to work together are broad and dynamic." 2 DIVIDEND PAYMENTS CONTINUE Concurrent with the release of the second quarter 2002 earnings, the Board of Directors of Boston Private Financial Holdings also announced the declaration of a cash dividend to shareholders of $0.04 per share. The dividend record date is August 1, 2002, and the payment date is August 15, 2002. CONFERENCE CALL Management also announced that it would hold a quarterly conference call to review the Company's financial performance, business and prospects on Tuesday, July 16th at 1:00 PM. Interested parties may join the call by dialing 1-800-451-7724. The password required is "Boston". The call will be simultaneously web cast and may be accessed on the Internet by linking through, WWW.BOSTONPRIVATE.COM, WWW.PRNEWSWIRE.COM , or Yahoo! Finance. GENERAL CORPORATE INFORMATION BOSTON PRIVATE FINANCIAL HOLDINGS offers a full range of financial planning, investment management, and private banking services to its domestic and international clientele through its six operating companies in two geographical regions of the United States. Established in 1987 and headquartered in Boston, MA, Boston Private manages approximately $6.5 billion in assets under management and has private banking assets of approximately $1.7 billion. It is a member of the Standard & Poor's 600 Index and is included on the NASDAQ Financial-100 Index. The ticker symbol is BPFH. The following is a brief profile of Boston Private's operations by region: NEW ENGLAND REGION BOSTON PRIVATE BANK & TRUST COMPANY specializes in providing private banking and investment services to individuals, their families and businesses. It has an investment management emphasis on mid to large cap equity and actively managed fixed income portfolios. It also offers commercial and residential lending services. Boston Private Bank & Trust Company also offers a First Time Homebuyer Program and "soft second" mortgage financing. Under its Accessible Banking Program, the Bank is an active provider of real estate financing for affordable housing, economic development and small businesses. WESTFIELD CAPITAL MANAGEMENT, whose clients consist of high net worth individuals, corporate pension funds, endowments and foundations, specializes in separately managed growth equity portfolios. Westfield also acts as the investment manager of seven limited partnerships. Its investment services include a particular focus on identifying and managing small and mid cap equity positions as well as balanced growth accounts. RINET COMPANY provides fee-only financial planning, tax planning and investment management services to high net worth individuals and their families. Its capabilities include tax planning and preparation, asset allocation, estate planning, charitable planning, 3 planning for employment benefits, including 401(k) plans, alternative investment analysis and mutual fund investing. BOSTON PRIVATE VALUE INVESTORS manages equity and fixed income accounts for high net worth clients and selected institutions primarily in New England and the Northeast. The firm is a large cap value-style investor with its headquarters in Concord, NH and an office at 10 Post Office Square in Boston, MA. NORTHERN CALIFORNIA REGION BOREL PRIVATE BANK & TRUST COMPANY serves the financial needs of individuals, their families and their businesses in Northern California. Borel conducts a commercial banking business, which includes accepting demand, savings and time deposits and making commercial, real estate and consumer loans. Borel offers various savings plans as well as other customary banking services and facilities. Additionally, Borel offers trust services and provides a variety of other fiduciary services including management, advisory and administrative services to individuals. SAND HILL ADVISORS manages equity and fixed income accounts for high net worth clients and selected institutions primarily in California. In addition to separately managed relationships, Sand Hill manages a no-load mutual fund and uses its expertise to plan and execute diversification programs for concentrated stock positions. THIS NEWS RELEASE CONTAINS FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995, INCLUDING ,AS WELL AS STATEMENTS REGARDING STRATEGIC GROWTH AND SYNERGIES, GROWTH RATES, STRENGTH OF THE COMPANY'S BUSINESSES, DEVELOPMENTS IN THE COMPANY NETWORKS, OPENING OF NEW OFFICES, WITHOUT LIMITATION, SUCH STATEMENTS AS MAY BE IDENTIFIED BY WORDS SUCH AS "BELIEVES," "WILL," "EXPECTS," "DEVELOPMENTS," "STRATEGIC," "LAUNCHING," "OPPORTUNITIES," "ANTICIPATES," "ESTIMATES," "INTENDS," "PLANS," "TARGETS" AND SIMILAR EXPRESSIONS. THESE STATEMENTS ARE BASED UPON THE CURRENT BELIEFS AND EXPECTATIONS OF BOSTON PRIVATE'S MANAGEMENT AND ARE SUBJECT TO SIGNIFICANT RISKS AND UNCERTAINTIES. ACTUAL RESULTS MAY DIFFER FROM THOSE SET FORTH IN THE FORWARD-LOOKING STATEMENTS. THE FOLLOWING FACTORS, AMONG OTHERS, COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THE ANTICIPATED RESULTS OR OTHER EXPECTATIONS EXPRESSED IN SUCH FORWARD-LOOKING STATEMENTS: (1) THE EXPECTED BENEFITS TO BOSTON PRIVATE'S WEALTH MANAGEMENT INITIATIVES, STRATEGIC GROWTH AND SYNERGIES MAY NOT BE REALIZED OR MAY BE REALIZED MORE SLOWLY THAN EXPECTED;( 2) ENACTMENT OF ADVERSE GOVERNMENT REGULATION; (3) COMPETITIVE PRESSURES AMONG DEPOSITORY AND OTHER FINANCIAL INSTITUTIONS MAY INCREASE SIGNIFICANTLY AND HAVE AN EFFECT ON PRICING, SPENDING, THIRD-PARTY RELATIONSHIPS AND REVENUES; (4) THE STRENGTH OF THE UNITED STATES ECONOMY IN GENERAL AND SPECIFICALLY THE STRENGTH OF THE NEW ENGLAND, CALIFORNIA AND OTHER ECONOMIES IN WHICH BOSTON PRIVATE OPERATES OR WILL BE OPERATING MAY BE DIFFERENT THAN EXPECTED RESULTING IN, AMONG OTHER THINGS, A DETERIORATION IN OVERALL CREDIT QUALITY AND BORROWERS' ABILITY TO SERVICE AND REPAY LOANS, OR A REDUCED DEMAND FOR CREDIT, INCLUDING THE RESULTANT EFFECT ON THE COMBINED COMPANY'S LOAN PORTFOLIO, LEVELS OF CHARGE-OFFS AND NON-PERFORMING LOANS AND ALLOWANCE FOR LOAN LOSSES, AND REDUCED DEMAND FOR WEALTH MANAGEMENT SERVICES; AND (5) CHANGES IN THE INTEREST RATE ENVIRONMENT MAY REDUCE INTEREST MARGINS AND ADVERSELY IMPACT NET INTEREST INCOME; (6) ADVERSE CONDITIONS IN THE STOCK MARKET, THE PUBLIC DEBT MARKET AND OTHER CAPITAL MARKETS AND THE IMPACT OF SUCH CONDITIONS ON BOSTON PRIVATE'S ASSET MANAGEMENT ACTIVITIES AND FEES FROM SUCH ACTIVITIES; AND (7) CHANGES IN ASSUMPTIONS USED IN MAKING SUCH FORWARD-LOOKING STATEMENTS. ADDITIONAL FACTORS THAT COULD CAUSE BOSTON PRIVATE'S RESULTS TO DIFFER MATERIALLY FROM THOSE DESCRIBED IN THE FORWARD-LOOKING STATEMENTS CAN BE FOUND IN BOSTON PRIVATE'S OTHER PRESS RELEASES AND ANNUAL REPORTS ON FORM 10-K, QUARTERLY REPORTS ON FORM 10-Q, CURRENT REPORTS ON FORM 8-K AND OTHER FILINGS SUBMITTED TO THE SECURITIES 4 AND EXCHANGE COMMISSION. ALL SUBSEQUENT WRITTEN AND ORAL FORWARD-LOOKING STATEMENTS ATTRIBUTABLE TO BOSTON PRIVATE OR ANY PERSON ACTING ON THEIR BEHALF ARE EXPRESSLY QUALIFIED IN THEIR ENTIRETY BY THE CAUTIONARY STATEMENTS REFERENCED ABOVE. BOSTON PRIVATE 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. 5 BOSTON PRIVATE HOLDINGS, INC. SELECTED FINANCIAL DATA (UNAUDITED)
(Dollars In Thousands, Except Per Share Data) JUNE 30, JUNE 30, DECEMBER 31, 2002 2001 % CHANGE 2001 % CHANGE -------- -------- -------- ------------ -------- FINANCIAL DATA: Total Balance Sheet Assets $1,699,603 $1,479,611 14.9% $1,509,479 12.6% Stockholders' Equity 153,479 139,032 10.4% 139,631 9.9% Investment Securities 270,355 355,197 (23.9%) 291,191 (7.2%) Commercial Loans 595,333 498,240 19.5% 538,144 10.6% Residential Mortgage Loans 565,481 413,341 36.8% 487,267 16.1% Home Equity and Other Loans 81,572 76,858 6.1% 79,678 2.4% Total Loans 1,242,386 988,439 25.7% 1,105,089 12.4% Allowance for Loan Losses 15,732 12,862 22.3% 14,521 8.3% Nonperforming Loans 866 1,086 (20.3%) 904 (4.2%) Other Real Estate Owned - - NA - NA Nonperforming Assets 866 1,086 (20.3%) 904 (4.2%) Deposits 1,326,689 1,148,931 15.5% 1,145,329 15.8% Borrowings 188,361 161,280 16.8% 190,978 (1.4%) Book Value Per Share $6.85 $6.28 9.1% 56.28 9.2% Market Price Per Share $24.74 $22.40 10.4% 522.07 12.1% ASSETS UNDER MANAGEMENT: Westfield Capital Management $2,861,000 $2,893,000 (1.1%) $2,751,000 4.0% Boston Private Bank & Trust 1,506,000 1,524,000 (1.2%) 1,518,000 (0.8%) Sand Hill Advisors - Regular Accounts 494,000 570,000 (13.3%) 550,000 (10.2%) Sand Hill Advisors - Concentrated Stock Portfolios 38,000 214,000 (82.2%) 129,000 (70.5%) Boston Private Value Investors 522,000 515,000 1.4% 493,000 5.9% RINET Company 587,000 511,000 14.9% 568,000 3.3% Borel Bank & Trust Company 496,000 501,000 (1.0%) 520,000 (4.6%) Total Assets Under Management $6,504,000 $6,728,000 (3.3%) $6,529,000 (0.4%) FINANCIAL RATIOS: Stockholders' Equity/Total Assets 9.03% 9.40% (3.9%) 9.25% (2.4%) Nonperforming Loans/Total Loans 0.07% 0.11% (36.4%) 0.08% (12.5%) Allowance for Loan Losses/Total Loans 1.27% 1.30% (2.3%) 1.31% (3.1%) Nonperforming Assets/Total Assets 0.05% 0.07% (28.6%) 0.06% (16.7%)
THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30, JUNE 30, JUNE 30, JUNE 30, 2002 2001 % CHANGE 2002 2001 % CHANGE ------------------- -------- -------------------- --------- OPERATING RESULTS: Net Interest Income $ 15,903 $ 13,208 20.4% $ 31,102 $ 26,197 18.7% --------- -------- ------ -------- -------- ------ Investment Management Fees - Westfield Capital Management 4,874 4,761 2.4% 9,756 9,061 7.7% Investment Management Fees - Boston Private Bank & Trust 2,331 2,257 3.3% 4,663 4,723 (1.3%) Investment Management Fees - Sand Hill Advisors 1,104 1,138 (3.0%) 2,237 2,402 (6.9%) Investment Management Fees - Boston Private Value Investors 950 966 (1.7%) 1,889 1,997 (5.4%) Investment Management Fees - Borel Bank & Trust Company 606 536 13.1% 1,214 1,117 8.7% --------- -------- ------ -------- -------- ------ Total Investment Management Fees 9,865 9,658 2.1% 19,759 19,300 2.4% Financial Planning Fees 1,571 1,146 37.1% 3,046 2,306 32.1% Equity in Earnings of Partnerships -- (26) (100.0%) (18) (112) (83.9%) Gain on Sale of Loans 610 151 304.0% 881 335 163.0% Gain on Sale of Investments 147 670 (78.1%) 563 1,160 (51.5%) Cash Administration Fees 193 489 (60.5%) 414 573 (27.7%) Other Fees 722 609 18.6% 1,518 1,100 38.0% --------- -------- ------ -------- -------- ------ Total Fees 13,108 12,697 3.2% 26,163 24,662 6.1% --------- -------- ------ -------- -------- ------ Total Revenue 29,011 25,905 12.0% 57,265 50,859 12.6% Loan Loss Provision 555 690 (19.6%) 1,235 1,330 (7.1%) Salaries and Benefits 12,793 10,955 16.8% 25,603 22,091 15.9% Occupancy and Equipment 2,785 1,939 43.6% 5,209 3,723 39.9% Professional Services 898 1,064 (15.6%) 1,627 2,018 (19.4%) Marketing and Business Development 956 1,179 (18.9%) 1,825 1,814 0.6% Contract Services and Processing 400 594 (32.7%) 866 958 (9.6%) Amortization of Goodwill and Intangibles 5 345 (98.6%) 9 689 (98.7%) Other 1,263 1,335 (5.4%) 3,057 2,664 14.8% --------- -------- ------ -------- -------- ------ Operating Expense 19,100 17,411 9.7% 38,196 33,957 12.5% Merger Expense -- 12 (100.0%) -- 139 (100.0%) --------- -------- ------ -------- -------- ------ Income before Taxes 9,356 7,792 20.1% 17,834 15,433 15.6% Income Tax Expense 3,072 2,625 17.0% 5,767 5,145 12.1% --------- -------- ------ -------- -------- ------ Net Income $ 6,284 $ 5,167 21.6% $ 12,067 $ 10,288 17.3% --------- -------- ------ -------- -------- ------
BOSTON PRIVATE HOLDINGS, INC. SELECTED FINANCIAL DATA (UNAUDITED)
THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30, JUNE 30, JUNE 30, JUNE 30, 2002 2001 % CHANGE 2002 2001 % CHANGE ---------- ---------- -------- ---------- ---------- -------- Basic Earnings Per Share $0.28 $0.23 21.7% $0.54 $0.47 15.7% Diluted Earnings Per Share $0.27 $0.22 22.7% $0.52 $0.45 16.1% Average Common Shares Outstanding 22,376,940 22,099,531 1.3% 22,342,268 22,052,045 1.3% ========== ========== ==== ========== ========== ==== Average Diluted Shares Outstanding 23,516,722 23,045,479 2.0% 23,426,970 22,968,915 2.0% ========== ========== ==== ========== ========== ==== OPERATING RATIOS: Return on Average Equity 16.85% 15.07% 11.8% 16.49% 15.19% 8.6% Return on Average Assets 1.56% 1.47% 6.1% 1.53% 1.49% 2.7% Net Interest Margin 4.30% 4.17% 3.1% 4.31% 4.21% 2.4% Total Fees and Other Income/Total Revenue 45.18% 49.01% (7.8%) 45.69% 48.49% (5.8%) Efficiency Ratio 65.84% 67.26% (2.1%) 66.70% 67.04% (0.5%)
THREE MONTHS ENDED THREE MONTHS ENDED JUNE 30, JUNE 30, JUNE 30, JUNE 30, 2002 2001 % CHANGE 2002 2001 % CHANGE -------------------------- --------- -------------------------- --------- AVERAGE BALANCE SHEET: Interest Bearing Cash $116 $10,758 (98.9%) $126 $7,886 (98.4%) Federal Funds Sold 29,028 52,319 (44.5%) 28,260 81,418 (65.3%) Money Market Investments 45,489 85,073 (46.5%) 53,451 60,921 (12.3%) U.S. Treasuries and Agencies 114,771 98,402 16.6% 111,307 100,913 10.3% Municipal Securities 101,349 104,378 (2.9%) 100,490 102,344 (1.8%) Corporate Bonds 17,551 11,723 49.7% 20,789 11,875 75.1% Mortgage-Backed Securities 1,858 2,927 (36.5%) 1,997 3,049 (34.5%) FHLB Stock 7,154 5,484 30.5% 7,049 5,297 33.1% Commercial Loans 570,175 478,235 19.2% 551,324 468,344 17.7% Residential Loans 544,806 389,346 39.9% 523,597 371,184 41.1% Home Equity and Other Consumer Loans 76,401 72,783 5.0% 77,555 72,030 7.7% ---------- ---------- ----- ---------- ---------- ----- Total Earning Assets 1,508,698 1,311,428 15.0% 1,475,945 1,285,261 14.8% Allowance for Loan Losses (15,439) (12,446) 24.0% (15,117) (12,099) 24.9% Other Assets 116,522 105,466 10.5% 114,371 105,829 8.1% ---------- ---------- ----- ---------- ---------- ----- TOTAL ASSETS $1,609,781 $1,404,448 14.6% $1,575,199 $1,378,991 14.2% ========== ========== ===== ========== ========== ===== LIABILITIES AND STOCKHOLDERS' EQUITY: Savings Accounts $24,668 $18,319 34.7% $23,656 $17,456 35.5% NOW Accounts 135,913 135,118 0.6% 133,486 123,015 8.5% Money Market Accounts 628,744 492,755 27.6% 615,903 499,381 23.3% Certificates of Deposit 252,471 257,114 (1.8%) 249,916 251,293 (0.5%) ---------- ---------- ----- ---------- ---------- ----- Total Interest-Bearing Deposits 1,041,796 903,306 15.3% 1,022,961 891,145 14.8% Federal Funds Purchased 1,089 -- 100.0% 1,782 -- 100.0% Repurchase Agreements 48,814 48,631 0.4% 51,927 43,945 18.2% FHLB Borrowings 127,043 109,011 16.5% 123,398 103,519 19.2% ---------- ---------- ----- ---------- ---------- ----- Total Interest-Bearing Liabilities 1,218,742 1,060,948 14.9% 1,200,068 1,038,609 15.5% Noninterest-Bearing Deposits 221,352 183,941 20.3% 206,756 183,119 12.9% Other Liabilities 20,540 22,434 (8.4%) 22,030 21,772 1.2% ---------- ---------- ----- ---------- ---------- ----- Total Liabilities 1,460,634 1,267,323 15.3% 1,428,854 1,243,500 14.9% Stockholders' Equity 149,147 137,125 8.8% 146,345 135,491 8.0% ---------- ---------- ----- ---------- ---------- ----- TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $1,609,781 $1,404,448 14.6% $1,575,199 $1,378,991 14.2% ========== ========== ===== ========== ========== =====
BOSTON PRIVATE HOLDINGS, INC. SELECTED FINANCIAL DATA (UNAUDITED)
JUNE 30, MARCH 31, 2002 2002 % CHANGE ---------- ----------- ------------ FINANCIAL DATA: Total Balance Sheet Assets $1,699,603 $1,577,323 7.8% Stockholders' Equity 153,479 144,756 6.0% Investment Securities 270,355 270,177 0.1% Commercial Loans 595,333 562,039 5.9% Residential Mortgage Loans 565,481 514,550 9.9% Home Equity and Other Loans 81,572 79,343 2.8% Total Loans 1,242,386 1,155,932 7.5% Allowance for Loan Losses 15,732 15,201 3.5% Nonperforming Loans 866 1,458 (40.6%) Other Real Estate Owned -- -- NA Nonperforming Assets 866 1,458 (40.6%) Deposits 1,326,689 1,224,060 8.4% Borrowings 188,361 181,695 3.7% Book Value Per Share $6.85 $6.48 5.8% Market Price Per Share $24.74 $26.75 (7.5%) ASSETS UNDER MANAGEMENT: Westfield Capital Management $2,861,000 $2,930,000 (2.4%) Boston Private Bank & Trust 1,506,000 1,575,000 (4.4%) Sand Hill Advisors - Regular Accounts 494,000 543,000 (9.0%) Sand Hill Advisors - Concentrated Stock Portfolios 38,000 102,000 (62.7%) Boston Private Value Investors 522,000 499,000 4.6% RINET Company 587,000 580,000 1.2% Borel Bank & Trust Company 496,000 521,000 (4.8%) Total Assets Under Management $6,504,000 $6,750,000 (3.6%) FINANCIAL RATIOS: Stockholders' Equity/Total Assets 9.03% 9.18% (1.6%) Nonperforming Loans/Total Loans 0.07% 0.13% (46.2%) Allowance for Loan Losses/Total Loans 1.27% 1.32% (3.8%) Nonperforming Assets/Total Assets 0.05% 0.09% (44.4%)
THREE MONTHS ENDED JUNE 30, MARCH 31, 2002 2001 % CHANGE ---------- ---------- ------- OPERATING RESULTS: Net Interest Income $15,903 $15,198 4.6% ---------- ---------- ------- Investment Management Fees - Westfield Capital Management 4,874 4,883 (0.2%) Investment Management Fees - Boston Private Bank & Trust 2,331 2,332 (0.0%) Investment Management Fees - Sand Hill Advisors 1,104 1,134 (2.6%) Investment Management Fees - Boston Private Value Investors 950 938 1.3% Investment Management Fees - Borel Bank & Trust Company 606 608 (0.3%) ---------- ---------- ------- Total Investment Management Fees 9,865 9,895 (0.3%) Financial Planning Fees 1,571 1,475 6.5% Equity in Earnings of Partnerships -- (18) (100.0%) Gain on Sale of Loans 610 271 125.1% Gain on Sale of Investments 147 415 (64.6%) Cash Administration Fees 193 221 (12.7%) Other Fees 722 796 (9.3%) ---------- ---------- ------- Total Fees 13,108 13,055 0.4% ---------- ---------- ------- Total Revenue 29,011 28,253 2.7% Loan Loss Provision 555 680 (18.4%) Salaries and Benefits 12,793 12,811 (0.1%) Occupancy and Equipment 2,785 2,424 14.9% Professional Services 898 823 9.1% Marketing and Business Development 956 868 10.1% Contract Services and Processing 400 465 (14.0%) Amortization of Goodwill and Intangibles 5 5 0.0% Other 1,263 1,700 (25.7%) ---------- ---------- ------- Operating Expense 19,100 19,096 0.0% Merger Expense -- -- 0.0% ---------- ---------- ------- Income before Taxes 9,356 8,477 10.4% Income Tax Expense 3,072 2,695 14.0% ---------- ---------- ------- Net Income $6,284 $5,782 8.7% ---------- ---------- ------- PER SHARE DATA: Basic Earnings Per Share $0.28 $0.26 7.7% Diluted Earnings Per Share $0.27 $0.25 8.0% Average Common Shares Outstanding 22,376,940 22,307,596 0.3% ========== ========== ======= Average Diluted Shares Outstanding 23,516,722 23,332,355 0.8% ========== ========== ======= OPERATING RATIOS: Return on Average Equity 16.85% 16.16% 4.3% Return on Average Assets 1.56% 1.50% 4.0% Net Interest Margin 4.30% 4.31% (0.2%) Total Fees and Other Income/Total Revenue 45.18% 46.21% (2.2%) Efficiency Ratio 65.84% 67.59% (2.6%)
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