Boston Private Financial Holdings, Inc. (NASDAQ: BPFH) (the “Company” or “BPFH”) today reported third quarter 2019 Net income attributable to the Company of $20.0 million, compared to $19.4 million for the second quarter of 2019 and $18.0 million for the third quarter of 2018. Third quarter 2019 Diluted earnings per share were $0.24, compared to $0.22 in the second quarter of 2019 and $0.20 in the third quarter of 2018.
"Our team is making strong progress building a platform to support the growth initiatives we shared during our Investor Day," said Anthony DeChellis, CEO of Boston Private. "Our third quarter results reflect disciplined expense management in a challenging net interest income environment, as we position our businesses to be more cohesive and competitive.
"This quarter, we welcomed John Longley as the President of the Western Region and Pat Dwyer as the Head of Strategic Business Development to help drive growth across the company. We also completed the formal integration of Boston Private Wealth and KLS Professional Advisors, a key milestone towards simplifying the BPFH business model and scaling Boston Private's ability to compete at the highest levels of the financial services industry."
Summary Financial Results - Reported | ||||||||||
% Change | ||||||||||
($ in millions, except for per share data) | 3Q19 | 2Q19 | 3Q18 | LQ | Y/Y | |||||
Net income | $20.0 | $19.4 | $18.0 | 3% | 11% | |||||
Diluted earnings per share | $0.24 | $0.22 | $0.20 | 9% | 20% | |||||
Non-GAAP Financial Measures: | ||||||||||
Pre-tax, pre-provision income | $25.7 | $26.2 | $23.4 | (2)% | 10% | |||||
Return on average common equity ("ROACE") | 9.8% | 9.8% | 9.7% | |||||||
Return on average tangible common equity ("ROATCE") | 11.0% | 11.1% | 11.4% | |||||||
The Company's reported financial results increased year-over-year primarily as a result of a $5.8 million restructuring expense during the third quarter of 2018.
In addition to presenting the Company’s results in conformity with GAAP, the Company uses certain non-GAAP financial measures to provide information for investors to effectively analyze financial trends of ongoing business activities, and to enhance comparability with peers across the financial sector. For additional information on non-GAAP measures, see page 6. A reconciliation of GAAP to non-GAAP results can be found beginning on page 17.
Summary Financial Results - Operating Basis (non-GAAP) | ||||||||||
% Change | ||||||||||
($ in millions, except for per share data) | 3Q19 | 2Q19 | 3Q181 | LQ | Y/Y | |||||
Net income | $20.0 | $19.4 | $22.5 | 3% | (11)% | |||||
Diluted earnings per share | $0.24 | $0.22 | $0.25 | 9% | (5)% | |||||
Pre-tax, pre-provision income | $25.7 | $26.2 | $29.2 | (2)% | (12)% | |||||
Return on average common equity | 9.8% | 9.8% | 12.1% | |||||||
Return on average tangible common equity | 11.0% | 11.1% | 14.2% | |||||||
1 3Q18 results adjusted to exclude the impact of $5.8 million restructuring expense, net of $1.2 million tax effect | ||||||||||
Divested Affiliates
The Company completed the sale of Bingham, Osborn & Scarborough LLC ("BOS") during 2018. Financial results from BOS remain consolidated in the Company's financial results through the closing date of December 3, 2018.
For presentation purposes, BOS's AUM is excluded from AUM amounts, but is included in the calculation of Core fees and income. The discussion below includes non-GAAP measures that exclude the contributions from BOS in order to enhance comparability of trends in the core business.
Net Interest Income and Margin | |||||||||||||
% Change | |||||||||||||
($ in millions) | 3Q19 | 2Q19 | 3Q18 | LQ | Y/Y | ||||||||
Net interest income | $56.2 | $57.5 | $59.6 | (2)% | (6)% | ||||||||
Less: Interest recovered on previous nonaccrual loans | 0.2 | — | 1.0 | nm | nm | ||||||||
Core net interest income (non-GAAP) | $56.0 | $57.5 | $58.7 | (3)% | (5)% | ||||||||
Net interest margin | 2.72 | % | 2.78 | % | 2.90 | % | |||||||
Core net interest margin (non-GAAP) | 2.71 | % | 2.78 | % | 2.90 | % | |||||||
nm = not meaningful | |||||||||||||
Net interest income for the third quarter of 2019 was $56.2 million, a decrease of 2% linked quarter and 6% year-over-year. Core net interest income, which excludes interest recovered on previous nonaccrual loans, decreased 3% linked quarter and 5% year-over-year. The linked quarter decrease was primarily driven by the repricing of variable rate loans and lower interest-earning asset volumes, partially offset by lower borrowing volumes.
The Company’s Core net interest margin, which excludes interest recovered on previous nonaccrual loans, decreased 7 basis points on a linked quarter basis to 2.71%, primarily driven by lower interest-earning asset yields and higher deposit costs, partially offset by lower borrowing volumes.
Noninterest Income | |||||||||||
% Change | |||||||||||
($ in millions) | 3Q19 | 2Q19 | 3Q18 | LQ | Y/Y | ||||||
Wealth management and trust fees | $19.1 | $18.9 | $25.5 | 1% | (25)% | ||||||
Investment management fees | 2.5 | 2.5 | 3.2 | 2% | (23)% | ||||||
Private banking fees 2 | 3.6 | 2.9 | 2.8 | 23% | 26% | ||||||
Total core fees and income | $25.2 | $24.3 | $31.6 | 4% | (20)% | ||||||
Total other income | — | 0.1 | 0.7 | (100)% | (100)% | ||||||
Total noninterest income | $25.1 | $24.4 | $32.3 | 3% | (22)% | ||||||
Memo: Excluding BOS | |||||||||||
Wealth management and trust fees (non-GAAP) 3 | $19.1 | $18.9 | $19.6 | 1% | (3)% | ||||||
Investment management fees | 2.5 | 2.5 | 3.2 | 2% | (23)% | ||||||
Private banking fees | 3.6 | 2.9 | 2.8 | 23% | 26% | ||||||
Total core fees and income (non-GAAP) 3 | $25.2 | $24.3 | $25.7 | 4% | (2)% | ||||||
Total other income | — | 0.1 | 0.7 | (100)% | (100)% | ||||||
Total noninterest income (non-GAAP) 3 | $25.1 | $24.4 | $26.4 | 3% | (5)% | ||||||
2 Private banking fees includes Other banking fee income and Gain/ (loss) on sale of loans, net
| |||||||||||
As previously announced, KLS and Boston Private Wealth LLC now operate as a single registered investment advisor ("RIA"). Revenue from the RIA, the legacy affiliates, and the trust operations of Boston Private Bank & Trust Company is included as Wealth management and trust fees during the current period and all prior periods.
Total core fees and income for the third quarter of 2019 was $25.2 million, a 4% increase linked quarter, primarily driven by a gain on sale of loans associated with the sale of approximately $90 million of mortgage loans. The 20% decline year-over-year was primarily driven by the divestiture of BOS.
Excluding BOS, Total core fees and income (non-GAAP) decreased 2% year-over-year, primarily driven by lower Investment Management fees and Wealth management and trust fees as a result of negative net flows.
Assets Under Management / Advisory | ||||||||||
% Change | ||||||||||
($ in millions) | 3Q19 | 2Q19 | 3Q18 | LQ | Y/Y | |||||
Wealth Management and Trust | $14,695 | $14,649 | $15,598 | —% | (6)% | |||||
Other 4 | 1,533 | 1,550 | 2,125 | (1)% | (28)% | |||||
Total assets under management / advisory | $16,228 | $16,199 | $17,723 | —% | (8)% | |||||
4 Includes results from Dalton, Greiner, Hartman, Maher & Co, LLC ("DGHM") | ||||||||||
Total assets under management / advisory were $16.2 billion at the end of the third quarter of 2019, flat linked quarter and a decrease of 8% year-over-year. The linked quarter comparison was impacted by positive market action partially offset by negative net flows, while the year-over-year decrease was primarily driven by negative net flows in excess of positive market action.
Total net flows were negative $137 million during the third quarter of 2019, of which $100 million were attributable to the Wealth Management & Trust segment.
Noninterest Expense | ||||||||||
% Change | ||||||||||
($ in millions) | 3Q19 | 2Q19 | 3Q18 | LQ | Y/Y | |||||
Salaries and employee benefits | $31.7 | $32.7 | $38.9 | (3)% | (19)% | |||||
Occupancy and equipment | 8.3 | 7.9 | 8.2 | 5% | 1% | |||||
Professional services | 4.4 | 3.3 | 2.9 | 34% | 54% | |||||
Marketing and business development | 1.4 | 1.9 | 1.7 | (27)% | (18)% | |||||
Information systems | 5.2 | 5.1 | 6.2 | 1% | (17)% | |||||
Amortization of intangibles | 0.7 | 0.7 | 0.8 | —% | (11)% | |||||
FDIC insurance | 0.1 | 0.6 | 0.7 | (90)% | (91)% | |||||
Restructuring | — | — | 5.8 | —% | (100)% | |||||
Other | 3.9 | 3.5 | 3.4 | 11% | 12% | |||||
Total noninterest expense | $55.5 | $55.7 | $68.6 | —% | (19)% | |||||
Memo: Excluding Notable Items5 and BOS | ||||||||||
Restructuring | — | — | 5.8 | —% | (100)% | |||||
BOS noninterest expense | — | — | 4.0 | —% | (100)% | |||||
Total noninterest expense (non-GAAP) | $55.5 | $55.7 | $58.8 | —% | (6)% | |||||
5 "Notable Items" include a $5.8 million restructuring expense in 3Q18 | ||||||||||
Total noninterest expense was flat linked quarter as lower salaries and employee benefits expense, marketing and business development expense, and an FDIC insurance assessment credit offset higher professional services expense and higher occupancy and equipment expense.
Excluding Notable Items and BOS, Total noninterest expense (non-GAAP) for the third quarter of 2019 was $55.5 million, flat linked quarter and down 6% year-over-year. The year-over-year decline was primarily attributable to efficiency initiatives primarily impacting compensation and technology.
Income Tax Expense
The Company's effective tax rate for the third quarter of 2019 was 21.6%.
Loans and Deposits - QTD Averages | ||||||||||
% Change | ||||||||||
($ in millions) | 3Q19 | 2Q19 | 3Q18 | LQ | Y/Y | |||||
Commercial and industrial | $1,102 | $1,092 | $999 | 1% | 10% | |||||
Commercial real estate | 2,518 | 2,507 | 2,475 | —% | 2% | |||||
Construction and land | 196 | 203 | 179 | (3)% | 9% | |||||
Residential | 3,016 | 3,009 | 2,837 | —% | 6% | |||||
Home equity | 89 | 91 | 94 | (3)% | (5)% | |||||
Other consumer | 128 | 125 | 163 | 3% | (22)% | |||||
Total loans | $7,049 | $7,026 | $6,747 | —% | 4% | |||||
Non-interest bearing deposits | 1,953 | 1,927 | 2,064 | 1% | (5)% | |||||
Interest bearing deposits | 4,705 | 4,664 | 4,668 | 1% | 1% | |||||
Total deposits | $6,658 | $6,591 | $6,732 | 1% | (1)% | |||||
Non-interest bearing deposits as a % of Total deposits | 29% | 29% | 31% | |||||||
Average total loans in the third quarter of 2019 increased 4% year-over-year, primarily driven by increases in Residential loans and Commercial and industrial loans. End of period residential loans declined $62 million linked quarter to $3.0 billion following a loan sale of approximately $90 million that was completed in September of 2019.
Average total deposits decreased 1% year-over-year, primarily driven by a decline in demand deposit accounts, partially offset by growth in money market accounts and certificates of deposits.
The cost of total deposits was 0.92%, an increase of 4 basis points linked quarter and 24 basis points year-over-year.
Provision and Asset Quality | ||||||||||
($ in millions) | 3Q19 | 2Q19 | 1Q19 | 4Q18 | 3Q18 | |||||
Provision/ (credit) for loan loss | $0.2 | $1.4 | $(1.4) | $0.1 | $(0.9) | |||||
Total criticized and classified loans | 139.0 | 141.7 | 141.3 | 146.6 | 134.7 | |||||
Total nonaccrual loans | 17.6 | 17.2 | 12.0 | 14.1 | 12.1 | |||||
Total loans 30-89 days past due and accruing | 4.2 | 2.4 | 17.7 | 22.3 | 11.6 | |||||
Total net loans (charged-off)/ recovered | 0.1 | (0.1) | (0.1) | 1.7 | 1.0 | |||||
Ratios: | ||||||||||
Allowance for loan losses as a % of Total loans | 1.07% | 1.06% | 1.07% | 1.09% | 1.09% | |||||
Nonaccrual loans as a % of Total loans | 0.25% | 0.24% | 0.17% | 0.20% | 0.18% |
The Company recorded a provision expense of $0.2 million for the third quarter of 2019, compared to a provision expense of $1.4 million for the second quarter of 2019 and a provision credit of $0.9 million in the third quarter of 2018. The provision expense in the third quarter of 2019 was primarily driven by required reserves for criticized and classified loans, partially offset by lower reserves for pass-rated loans.
Total criticized loans as of September 30, 2019 was $139.0 million, a 2% decline linked quarter and an increase of 3% year-over-year. Total nonaccrual loans as of September 30, 2019 was $17.6 million, or 25 basis points of Total loans, compared to $17.2 million, or 24 basis points of total loans as of June 30, 2019, and $12.1 million, or 18 basis points of Total loans as of September 30, 2018.
Capital | ||||||||||
($ in millions, except for per share data) | 3Q19 | 2Q19 | 1Q19 | 4Q18 | 3Q18 | |||||
Tangible common equity/ Tangible assets (non-GAAP) | 8.6% | 8.4% | 8.3% | 8.1% | 7.8% | |||||
Tangible book value per share (non-GAAP) | $8.90 | $8.71 | $8.47 | $8.18 | $7.67 | |||||
Regulatory Capital Ratios: 6 | ||||||||||
Tier 1 common equity | 11.2% | 11.2% | 11.4% | 11.4% | 11.1% | |||||
Total risk-based capital | 13.9% | 13.9% | 14.2% | 14.3% | 14.1% | |||||
Tier 1 risk-based capital | 12.8% | 12.7% | 13.0% | 13.0% | 12.8% | |||||
Tier 1 leverage capital | 9.7% | 9.6% | 9.7% | 9.5% | 9.2% | |||||
Common Equity Repurchase Program: | ||||||||||
Total shares of common stock repurchased | 678,165 | — | — | 1,505,521 | 137,144 | |||||
Average price paid per share of common stock | $10.61 | — | — | $12.02 | $13.89 | |||||
Aggregate repurchases of common equity ($ in millions) | $7.2 | — | — | $18.1 | $1.9 | |||||
6 Current quarter information is presented based on estimated data. | ||||||||||
During the third quarter of 2019, the Company implemented a $20 million share repurchase program and repurchased 678,165 shares of common stock at an average cost of $10.61 per share. $12.8 million remains available to be repurchased under the current program.
Tangible book value per share as of September 30, 2019 increased 2% linked quarter and 16% year-over-year to $8.90. The linked quarter increase in Tangible book value per share was primarily driven by increased retained earnings and higher accumulated other comprehensive income related to unrealized securities gains, partially offset by common share repurchases.
EPS Calculation
For calculation of income for EPS, third quarter 2019 Net income attributable to the common shareholders was positively impacted by $0.3 million related to the change in value of Redeemable noncontrolling interests (“RNCI”).
Dividend Payments
Concurrent with the release of third quarter 2019 earnings, the Board of Directors of the Company declared a cash dividend payable to common shareholders of $0.12 per share. The record date for this dividend is November 8, 2019, and the payment date is November 22, 2019.
Non-GAAP Financial Measures
The Company uses certain non-GAAP financial measures to provide information for investors to effectively analyze financial trends of ongoing business activities, and to enhance comparability with peers across the financial sector.
These non-GAAP financial measures include: return on average common equity; return on average tangible common equity; pre-tax, pre-provision income; net interest income and net interest margin excluding interest recovered on previous nonaccrual loans, also referred to as core net interest income, and core net interest margin, respectively; tangible common equity / tangible assets, total noninterest expense excluding intangibles and restructuring, if any; the efficiency ratio excluding amortization and intangibles, and restructuring, if any; net income attributable to the Company excluding notable items; net income attributable to the common shareholders, treasury stock method, excluding notable items; diluted earnings per share excluding notable items; operating basis total revenue; operating basis total noninterest expenses
A detailed reconciliation table of the Company’s GAAP to non-GAAP measures is included in the tables of this release and beginning on page 17 of the attached financial statements.
Conference Call
Management will hold a conference call at 8:00 a.m. Eastern Time on Friday, October 25, 2019, to discuss the financial results, business highlights and outlook. To access the call:
Dial In #: (888) 317-6003
Elite Entry Number: 9751347
Replay Information:
Available from October 25, 2019 at 12:00 p.m Eastern Time until November 1, 2019
Dial In #: (877) 344-7529
Conference Number: 10135524
The call will be simultaneously webcast and may be accessed on www.bostonprivate.com.
About Boston Private
Boston Private Financial Holdings, Inc. is a national financial services organization that owns Wealth Management, Trust, and Commercial and Private Banking affiliates with offices in Boston, New York, Los Angeles, San Francisco, San Jose, and Florida. The Company has total assets of greater than $8 billion, and manages over $16 billion of client assets.
The Company’s affiliates 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.
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 business activities; changes in interest rates; competitive pressures from other financial institutions; the effects of weakness in general economic conditions on a national basis or in the local markets in which the Company operates; 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; operational risks including, but not limited to, cybersecurity, fraud and natural disasters; changes in 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 statement is made.
BOSTON PRIVATE FINANCIAL HOLDINGS, INC. | |||||||||||||||||||
Consolidated Balance Sheet | |||||||||||||||||||
Unaudited ($ in thousands, except share and per share data) | |||||||||||||||||||
3Q19 | 2Q19 | 1Q19 | 4Q18 | 3Q18 | |||||||||||||||
ASSETS: | |||||||||||||||||||
Cash and cash equivalents | $ | 78,010 | $ | 65,756 | $ | 96,211 | $ | 127,259 | $ | 92,634 | |||||||||
Investment securities available-for-sale | 935,538 | 966,731 | 981,951 | 994,065 | 1,056,261 | ||||||||||||||
Investment securities held-to-maturity | 51,379 | 54,482 | 67,548 | 70,438 | 75,468 | ||||||||||||||
Equity securities at fair value | 21,780 | 19,092 | 7,491 | 14,228 | 7,079 | ||||||||||||||
Stock in Federal Home Loan Bank and Federal Reserve Bank | 47,756 | 64,453 | 47,053 | 49,263 | 48,727 | ||||||||||||||
Loans held for sale | 6,658 | 3,640 | 280 | 2,812 | 3,344 | ||||||||||||||
Loans | 7,067,151 | 7,080,260 | 6,926,968 | 6,893,158 | 6,720,420 | ||||||||||||||
Less: Allowance for loan losses | 75,359 | 75,067 | 73,814 | 75,312 | 73,500 | ||||||||||||||
Loans, net of allowance for loan losses | 6,991,792 | 7,005,193 | 6,853,154 | 6,817,846 | 6,646,920 | ||||||||||||||
Other real estate owned (“OREO”) | — | — | — | 401 | 108 | ||||||||||||||
Premises and equipment, net | 42,658 | 40,244 | 42,938 | 45,412 | 47,399 | ||||||||||||||
Goodwill 7 | 57,607 | 57,607 | 57,607 | 57,607 | 75,598 | ||||||||||||||
Intangible assets, net 7 | 10,622 | 10,884 | 11,555 | 12,227 | 13,834 | ||||||||||||||
Accrued interest receivable | 24,851 | 26,411 | 25,935 | 24,366 | 24,641 | ||||||||||||||
Deferred income taxes, net | 15,704 | 17,183 | 22,844 | 26,638 | 27,833 | ||||||||||||||
Right-of-use assets | 107,045 | 110,880 | 104,644 | — | — | ||||||||||||||
Other assets 7 | 299,544 | 270,317 | 252,932 | 252,063 | 255,994 | ||||||||||||||
TOTAL ASSETS | $ | 8,690,944 | $ | 8,712,873 | $ | 8,572,143 | $ | 8,494,625 | $ | 8,375,840 | |||||||||
LIABILITIES: | |||||||||||||||||||
Deposits | $ | 6,658,242 | $ | 6,437,963 | $ | 6,779,845 | $ | 6,781,170 | $ | 6,768,723 | |||||||||
Securities sold under agreements to repurchase | 48,860 | 62,372 | 58,329 | 36,928 | 39,453 | ||||||||||||||
Federal funds purchased | 230,000 | 135,000 | — | 250,000 | 120,000 | ||||||||||||||
Federal Home Loan Bank borrowings | 570,904 | 920,068 | 615,070 | 420,144 | 441,836 | ||||||||||||||
Junior subordinated debentures | 106,363 | 106,363 | 106,363 | 106,363 | 106,363 | ||||||||||||||
Lease liabilities | 122,799 | 126,740 | 120,162 | — | — | ||||||||||||||
Other liabilities 7 | 143,607 | 124,370 | 112,893 | 143,540 | 149,770 | ||||||||||||||
TOTAL LIABILITIES | 7,880,775 | 7,912,876 | 7,792,662 | 7,738,145 | 7,626,145 | ||||||||||||||
REDEEMABLE NONCONTROLLING INTEREST (“RNCI”) | 1,481 | 1,786 | 662 | 2,526 | 11,686 | ||||||||||||||
SHAREHOLDERS' EQUITY: | |||||||||||||||||||
Common stock, $1.00 par value; authorized: 170,000,000 shares | 83,242 | 83,774 | 83,774 | 83,656 | 84,603 | ||||||||||||||
Additional paid-in capital | 599,877 | 603,869 | 604,288 | 600,196 | 614,157 | ||||||||||||||
Retained earnings | 116,210 | 106,443 | 97,155 | 87,821 | 64,618 | ||||||||||||||
Accumulated other comprehensive income/ (loss) | 9,359 | 4,125 | (6,398 | ) | (17,719 | ) | (27,578 | ) | |||||||||||
TOTAL COMPANY'S SHAREHOLDERS' EQUITY | 808,688 | 798,211 | 778,819 | 753,954 | 735,800 | ||||||||||||||
Noncontrolling interests | — | — | — | — | 2,209 | ||||||||||||||
TOTAL SHAREHOLDERS' EQUITY | 808,688 | 798,211 | 778,819 | 753,954 | 738,009 | ||||||||||||||
TOTAL LIABILITIES, RNCI, AND SHAREHOLDERS' EQUITY | $ | 8,690,944 | $ | 8,712,873 | $ | 8,572,143 | $ | 8,494,625 | $ | 8,375,840 | |||||||||
7 On December 3, 2018, the Company completed the sale of its ownership interest in BOS to the management team of BOS for an upfront cash payment and an eight-year revenue sharing agreement with BOS. For regulatory purposes, the goodwill and intangible assets of BOS are included in consolidated calculations through the closing date. | |||||||||||||||||||
BOSTON PRIVATE FINANCIAL HOLDINGS, INC. | |||||||||||||||||||
Consolidated Income Statement | |||||||||||||||||||
Unaudited ($ in thousands, except share and per share data) | |||||||||||||||||||
3Q19 | 2Q19 | 1Q19 | 4Q18 | 3Q18 | |||||||||||||||
REVENUE: | |||||||||||||||||||
Interest income | $ | 77,604 | $ | 78,728 | $ | 76,824 | $ | 76,892 | $ | 76,101 | |||||||||
Interest expense | 21,451 | 21,268 | 18,486 | 16,895 | 16,460 | ||||||||||||||
Net interest income | 56,153 | 57,460 | 58,338 | 59,997 | 59,641 | ||||||||||||||
Provision/ (credit) for loan losses | 167 | 1,363 | (1,426 | ) | 93 | (949 | ) | ||||||||||||
Net interest income after provision/ (credit) for loan losses | 55,986 | 56,097 | 59,764 | 59,904 | 60,590 | ||||||||||||||
Wealth management and trust fees 8 | 19,067 | 18,912 | 19,058 | 23,788 | 25,505 | ||||||||||||||
Investment management fees | 2,496 | 2,455 | 2,650 | 2,831 | 3,245 | ||||||||||||||
Private banking fee income | 2,658 | 2,867 | 2,499 | 2,033 | 2,775 | ||||||||||||||
Gain on sale of loans, net | 934 | 58 | 73 | 39 | 67 | ||||||||||||||
Total core fees and income | 25,155 | 24,292 | 24,280 | 28,691 | 31,592 | ||||||||||||||
Total other income | (29 | ) | 88 | 968 | 17,154 | 722 | |||||||||||||
TOTAL REVENUE 9 | 81,279 | 81,840 | 83,586 | 105,842 | 91,955 | ||||||||||||||
NONINTEREST EXPENSE: | |||||||||||||||||||
Salaries and employee benefits | 31,684 | 32,706 | 35,726 | 36,007 | 38,944 | ||||||||||||||
Occupancy and equipment | 8,260 | 7,852 | 8,348 | 7,975 | 8,164 | ||||||||||||||
Professional services | 4,435 | 3,313 | 3,560 | 4,229 | 2,877 | ||||||||||||||
Marketing and business development | 1,403 | 1,934 | 1,085 | 2,275 | 1,710 | ||||||||||||||
Information systems | 5,169 | 5,137 | 5,860 | 6,296 | 6,233 | ||||||||||||||
Amortization of intangibles | 671 | 672 | 672 | 680 | 750 | ||||||||||||||
FDIC insurance | 59 | 585 | 660 | 739 | 674 | ||||||||||||||
Restructuring | — | — | 1,646 | 2,065 | 5,763 | ||||||||||||||
Other | 3,856 | 3,460 | 2,996 | 3,291 | 3,442 | ||||||||||||||
TOTAL NONINTEREST EXPENSE | 55,537 | 55,659 | 60,553 | 63,557 | 68,557 | ||||||||||||||
INCOME BEFORE INCOME TAXES | 25,575 | 24,818 | 24,459 | 42,192 | 24,347 | ||||||||||||||
Provision for income taxes | 5,517 | 5,369 | 4,917 | 8,651 | 5,461 | ||||||||||||||
Net income from continuing operations | 20,058 | 19,449 | 19,542 | 33,541 | 18,886 | ||||||||||||||
Net income from discontinued operations 10 | — | — | — | 306 | — | ||||||||||||||
Net income before attribution to noncontrolling interests | 20,058 | 19,449 | 19,542 | 33,847 | 18,886 | ||||||||||||||
Less: Net income attributable to noncontrolling interests | 96 | 69 | 100 | 545 | 924 | ||||||||||||||
NET INCOME ATTRIBUTABLE TO THE COMPANY | $ | 19,962 | $ | 19,380 | $ | 19,442 | $ | 33,302 | $ | 17,962 | |||||||||
Adjustments, treasury stock method 11 | 304 | (816 | ) | 1,557 | 2,694 | (829 | ) | ||||||||||||
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ | 20,266 | $ | 18,564 | $ | 20,999 | $ | 35,996 | $ | 17,133 | |||||||||
COMMON SHARE DATA: | |||||||||||||||||||
Weighted average basic shares outstanding | 83,631,403 | 83,565,780 | 83,285,095 | 83,750,785 | 84,017,284 | ||||||||||||||
Weighted average diluted shares outstanding 12 | 83,956,708 | 84,048,972 | 84,010,450 | 84,863,779 | 85,498,568 | ||||||||||||||
Diluted total earnings per share | $ | 0.24 | $ | 0.22 | $ | 0.25 | $ | 0.42 | $ | 0.20 | |||||||||
8 Wealth management and trust fees consists of revenue from Boston Private Wealth LLC, KLS Professional Advisors, BOS, and the trust operations of Boston Private Bank & Trust Company 9 Total revenue is the sum of Net interest income, Total core fees and income, and Total other income. 10 Net income from discontinued operations consists of contingent payments, net of expenses, related to a divested affiliate, Westfield Capital Management Company, LLC. The Company received its final contingent payment in the first quarter of 2018 related to this affiliate and a tax benefit related to deferred taxes in the fourth quarter of 2018 11 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 decrease/ (increase) in Noncontrolling interests redemption value. 12 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, 2018. | |||||||||||||||||||
BOSTON PRIVATE FINANCIAL HOLDINGS, INC. | ||||||||
Consolidated Income Statement | ||||||||
Unaudited ($ in thousands, except share and per share data) | ||||||||
Nine months ended September 30, | ||||||||
2019 | 2018 | |||||||
REVENUE: | ||||||||
Interest income | $ | 233,156 | $ | 216,012 | ||||
Interest expense | 61,205 | 41,443 | ||||||
Net interest income | 171,951 | 174,569 | ||||||
Provision/ (credit) for loan losses | 104 | (2,291 | ) | |||||
Net interest income after provision/ (credit) for loan losses | 171,847 | 176,860 | ||||||
Wealth management and trust fees 8 | 57,037 | 76,030 | ||||||
Investment management fees | 7,601 | 18,897 | ||||||
Private banking fee income | 8,024 | 7,793 | ||||||
Gain on sale of loans, net | 1,065 | 204 | ||||||
Total core fees and income | 73,727 | 102,924 | ||||||
Total other income | 1,027 | 1,228 | ||||||
TOTAL REVENUE 9 | 246,705 | 278,721 | ||||||
NONINTEREST EXPENSE: | ||||||||
Salaries and employee benefits | 100,116 | 125,461 | ||||||
Occupancy and equipment | 24,460 | 24,141 | ||||||
Professional services | 11,308 | 8,926 | ||||||
Marketing and business development | 4,422 | 5,373 | ||||||
Information systems | 16,166 | 18,889 | ||||||
Amortization of intangibles | 2,015 | 2,249 | ||||||
FDIC insurance | 1,304 | 2,126 | ||||||
Restructuring | 1,646 | 5,763 | ||||||
Other | 10,312 | 10,870 | ||||||
TOTAL NONINTEREST EXPENSE | 171,749 | 203,798 | ||||||
INCOME BEFORE INCOME TAXES | 74,852 | 77,214 | ||||||
Income tax expense | 15,803 | 28,886 | ||||||
Net income from continuing operations | 59,049 | 48,328 | ||||||
Net income from discontinued operations 10 | — | 1,696 | ||||||
Net income before attribution to noncontrolling interests | 59,049 | 50,024 | ||||||
Less: Net income attributable to noncontrolling interests | 265 | 2,942 | ||||||
NET INCOME ATTRIBUTABLE TO THE COMPANY | $ | 58,784 | $ | 47,082 | ||||
Adjustments, treasury stock method 11 | 1,045 | (4,376 | ) | |||||
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ | 59,829 | $ | 42,706 | ||||
COMMON SHARE DATA | ||||||||
Weighted average basic shares outstanding | 83,495,361 | 83,544,754 | ||||||
Weighted average diluted shares outstanding 12 | 84,003,281 | 85,254,295 | ||||||
Diluted total earnings per share | $ | 0.71 | $ | 0.50 | ||||
8 Wealth management and trust fees consists of revenue from Boston Private Wealth LLC, KLS Professional Advisors, BOS, and the trust operations of Boston Private Bank & Trust Company 9 Total revenue is the sum of Net interest income, Total core fees and income, and Total other income. 10 Net income from discontinued operations consists of contingent payments, net of expenses, related to a divested affiliate, Westfield Capital Management Company, LLC. The Company received its final contingent payment in the first quarter of 2018 related to this affiliate and a tax benefit related to deferred taxes in the fourth quarter of 2018 11 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 decrease/ (increase) in Noncontrolling interests redemption value and dividends paid on preferred stock, if any, including deemed dividends on redemption of the 6.95% non-cumulative perpetual preferred stock, Series D (“the Series D preferred stock”), if any. On June 15, 2018, the Company redeemed all $50 million of the outstanding Series D preferred stock. 12 For a description of the Company's policies regarding Diluted earnings per share, please refer to Part II. Item 8. “Financial Statements and Supplementary Data - Note 16: Earnings Per Share” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. | ||||||||
BOSTON PRIVATE FINANCIAL HOLDINGS, INC. | |||||||||||||||||||
Consolidated Financial Highlights | |||||||||||||||||||
Unaudited ($ in thousands, except share and per share data) | |||||||||||||||||||
3Q19 | 2Q19 | 1Q19 | 4Q18 | 3Q18 | |||||||||||||||
KEY STATISTICS: | |||||||||||||||||||
Return on average assets (non-GAAP) 13 | 0.91 | % | 0.90 | % | 0.93 | % | 1.56 | % | 0.84 | % | |||||||||
ROACE (non-GAAP) 13 | 9.80 | % | 9.83 | % | 10.29 | % | 17.87 | % | 9.67 | % | |||||||||
ROATCE (non-GAAP) 13 | 10.99 | % | 11.06 | % | 11.63 | % | 20.46 | % | 11.37 | % | |||||||||
Efficiency ratio (non-GAAP) 13 | 67.5 | % | 67.2 | % | 69.7 | % | 57.1 | % | 67.0 | % | |||||||||
Noninterest income to total revenue | 30.9 | % | 29.8 | % | 30.2 | % | 43.3 | % | 35.1 | % | |||||||||
Net interest margin | 2.72 | % | 2.78 | % | 2.90 | % | 2.94 | % | 2.90 | % | |||||||||
Average loan to average deposit ratio | 105.9 | % | 106.6 | % | 101.6 | % | 98.0 | % | 100.2 | % | |||||||||
Cost of total deposits | 0.92 | % | 0.88 | % | 0.84 | % | 0.77 | % | 0.68 | % | |||||||||
Cost of interest-bearing deposits | 1.31 | % | 1.25 | % | 1.19 | % | 1.11 | % | 0.98 | % | |||||||||
Cost of total funding | 1.12 | % | 1.11 | % | 1.00 | % | 0.89 | % | 0.86 | % | |||||||||
Allowance for Loan Loss / Total Loans | 1.07 | % | 1.06 | % | 1.07 | % | 1.09 | % | 1.09 | % | |||||||||
Nonperforming loans / Total Loans | 0.25 | % | 0.24 | % | 0.17 | % | 0.20 | % | 0.18 | % | |||||||||
Net (charge-offs) / recoveries / Total loans 13 | 0.01 | % | (0.01 | )% | — | % | 0.10 | % | 0.06 | % | |||||||||
CAPITAL HIGHLIGHTS: | |||||||||||||||||||
Tier 1 common equity 14 | $ | 732,980 | $ | 726,872 | $ | 717,138 | $ | 702,728 | $ | 674,641 | |||||||||
Tier 1 capital 14 | $ | 833,431 | $ | 827,299 | $ | 817,600 | $ | 803,311 | $ | 776,328 | |||||||||
Total capital 14 | $ | 910,076 | $ | 903,675 | $ | 892,764 | $ | 879,927 | $ | 851,399 | |||||||||
Risk-weighted assets ("RWA") 14 | $ | 6,533,882 | $ | 6,491,184 | $ | 6,304,444 | $ | 6,161,677 | $ | 6,057,002 | |||||||||
Average assets for leverage 14 | $ | 8,588,358 | $ | 8,617,803 | $ | 8,447,143 | $ | 8,416,195 | $ | 8,436,411 | |||||||||
TIer 1 common equity ratio 14 | 11.22 | % | 11.20 | % | 11.38 | % | 11.40 | % | 11.14 | % | |||||||||
Tier 1 ratio 14 | 12.76 | % | 12.74 | % | 12.97 | % | 13.04 | % | 12.82 | % | |||||||||
Total capital ratio 14 | 13.93 | % | 13.92 | % | 14.16 | % | 14.28 | % | 14.06 | % | |||||||||
Leverage ratio 14 | 9.70 | % | 9.60 | % | 9.68 | % | 9.54 | % | 9.20 | % | |||||||||
Total equity / Total assets | 9.30 | % | 9.16 | % | 9.09 | % | 8.88 | % | 8.81 | % | |||||||||
Tangible common equity / Tangible assets (non-GAAP) | 8.59 | % | 8.44 | % | 8.35 | % | 8.12 | % | 7.83 | % | |||||||||
Market price per share | $ | 11.66 | $ | 12.07 | $ | 10.96 | $ | 10.57 | $ | 13.65 | |||||||||
End of period shares outstanding | 83,241,952 | 83,774,335 | 83,773,650 | 83,655,651 | 84,602,519 | ||||||||||||||
Book value per common share | $ | 9.71 | $ | 9.53 | $ | 9.30 | $ | 9.01 | $ | 8.72 | |||||||||
Tangible book value per share (non-GAAP) | $ | 8.90 | $ | 8.71 | $ | 8.47 | $ | 8.18 | $ | 7.67 | |||||||||
Common Equity Repurchase Program: | |||||||||||||||||||
Total shares of common stock repurchased | 678,165 | — | — | 1,505,521 | 137,144 | ||||||||||||||
Average price paid per share of common stock | $ | 10.61 | $ | — | $ | — | $ | 12.02 | $ | 13.89 | |||||||||
Aggregate repurchases of common equity ($ in millions) | $ | 7.2 | $ | — | $ | — | $ | 18.1 | $ | 1.9 | |||||||||
13 Annualized 14 Current quarter capital highlights are presented based on estimated data. | |||||||||||||||||||
BOSTON PRIVATE FINANCIAL HOLDINGS, INC. | |||||||||||||||||||
Consolidated AUM and Balance Sheet - End of Period Balances | |||||||||||||||||||
Unaudited ($ in thousands) | |||||||||||||||||||
3Q19 | 2Q19 | 1Q19 | 4Q18 | 3Q18 | |||||||||||||||
ASSETS UNDER MANAGEMENT AND ADVISORY ("AUM"): | |||||||||||||||||||
Wealth Management and Trust | $ | 14,695,000 | $ | 14,649,000 | $ | 14,564,000 | $ | 14,206,000 | $ | 15,598,000 | |||||||||
Other | 1,533,000 | 1,550,000 | 1,558,000 | 1,715,000 | 2,125,000 | ||||||||||||||
Total AUM, excluding BOS 15 | 16,228,000 | 16,199,000 | 16,122,000 | 15,921,000 | 17,723,000 | ||||||||||||||
AUM at BOS | — | — | — | — | 4,714,000 | ||||||||||||||
Less: Inter-company relationship | — | — | — | — | (7,000 | ) | |||||||||||||
Total AUM | $ | 16,228,000 | $ | 16,199,000 | $ | 16,122,000 | $ | 15,921,000 | $ | 22,430,000 | |||||||||
AUM Reconciliation: | |||||||||||||||||||
Beginning balance | $ | 16,199,000 | $ | 16,122,000 | $ | 15,921,000 | $ | 17,723,000 | $ | 16,861,000 | |||||||||
Net flows | (137,000 | ) | (269,000 | ) | (963,000 | ) | (143,000 | ) | 260,000 | ||||||||||
Market | 166,000 | 346,000 | 1,164,000 | (1,659,000 | ) | 602,000 | |||||||||||||
Ending balance | $ | 16,228,000 | $ | 16,199,000 | $ | 16,122,000 | $ | 15,921,000 | $ | 17,723,000 | |||||||||
AUM Net Flows: | |||||||||||||||||||
Wealth Management & Trust | $ | (100,000 | ) | $ | (233,000 | ) | $ | (580,000 | ) | $ | (137,000 | ) | $ | 215,000 | |||||
Other | (37,000 | ) | (36,000 | ) | (383,000 | ) | (6,000 | ) | 45,000 | ||||||||||
Total Net flows | $ | (137,000 | ) | $ | (269,000 | ) | $ | (963,000 | ) | $ | (143,000 | ) | $ | 260,000 | |||||
DEPOSITS: | |||||||||||||||||||
Demand deposits (non-interest bearing) | $ | 1,947,363 | $ | 1,854,091 | $ | 2,016,838 | $ | 1,951,274 | $ | 2,001,275 | |||||||||
NOW | 598,048 | 563,130 | 605,852 | 626,685 | 568,148 | ||||||||||||||
Savings | 68,059 | 68,036 | 68,102 | 73,834 | 72,967 | ||||||||||||||
Money market | 3,366,623 | 3,228,608 | 3,302,244 | 3,338,892 | 3,363,062 | ||||||||||||||
Certificates of deposit | 678,149 | 724,098 | 786,809 | 790,485 | 763,271 | ||||||||||||||
TOTAL DEPOSITS | $ | 6,658,242 | $ | 6,437,963 | $ | 6,779,845 | $ | 6,781,170 | $ | 6,768,723 | |||||||||
LOANS: | |||||||||||||||||||
Commercial and Industrial | $ | 695,029 | $ | 656,186 | $ | 615,370 | $ | 623,037 | $ | 583,214 | |||||||||
Commercial tax exempt | 448,488 | 450,307 | 449,492 | 451,671 | 438,807 | ||||||||||||||
Commercial real estate | 2,533,346 | 2,530,556 | 2,439,048 | 2,395,692 | 2,399,080 | ||||||||||||||
Construction and land | 209,741 | 200,378 | 210,618 | 240,306 | 197,524 | ||||||||||||||
Residential | 2,964,042 | 3,025,758 | 2,993,132 | 2,948,973 | 2,862,879 | ||||||||||||||
Home Equity | 84,432 | 89,930 | 88,620 | 90,421 | 93,390 | ||||||||||||||
Consumer | 132,073 | 127,145 | 130,688 | 143,058 | 145,526 | ||||||||||||||
TOTAL LOANS | $ | 7,067,151 | $ | 7,080,260 | $ | 6,926,968 | $ | 6,893,158 | $ | 6,720,420 | |||||||||
15 Assets under management and advisory have been reduced to exclude those assets managed or advised by BOS for periods when BOS was owned by the Company | |||||||||||||||||||
BOSTON PRIVATE FINANCIAL HOLDINGS, INC. | |||||||||||||||||||
Asset Quality | |||||||||||||||||||
Unaudited ($ in thousands) | |||||||||||||||||||
3Q19 | 2Q19 | 1Q19 | 4Q18 | 3Q18 | |||||||||||||||
CHARGE-OFFS: | |||||||||||||||||||
Loan charge-offs | $ | (185 | ) | $ | (195 | ) | $ | (564 | ) | $ | (370 | ) | $ | — | |||||
Loan recoveries | 310 | 85 | 492 | 2,089 | 985 | ||||||||||||||
NET (CHARGE-OFFS) / RECOVERIES | $ | 125 | $ | (110 | ) | $ | (72 | ) | $ | 1,719 | $ | 985 | |||||||
Net charge-offs to average loans (annualized) | 0.01 | % | (0.01 | )% | — | % | 0.10 | % | 0.06 | % | |||||||||
Net Charge-offs by Loan Type: | |||||||||||||||||||
Commercial and industrial | $ | 95 | $ | (155 | ) | $ | 188 | $ | (77 | ) | $ | 153 | |||||||
Commercial real estate | 27 | 30 | 189 | 1,394 | 820 | ||||||||||||||
Construction and land | — | — | — | — | — | ||||||||||||||
Residential | — | — | 100 | 402 | — | ||||||||||||||
Home Equity | 6 | — | (562 | ) | — | — | |||||||||||||
Consumer | (3 | ) | 15 | 13 | — | 12 | |||||||||||||
NET (CHARGE-OFFS) / RECOVERIES | $ | 125 | $ | (110 | ) | $ | (72 | ) | $ | 1,719 | $ | 985 | |||||||
NONPERFORMING LOAN DATA: | |||||||||||||||||||
Special mention loans | $ | 58,133 | $ | 70,677 | $ | 86,787 | $ | 78,528 | $ | 67,406 | |||||||||
Accruing classified loans 16 | 63,278 | 53,883 | 42,521 | 54,095 | 55,380 | ||||||||||||||
Nonaccrual loans | 17,565 | 17,155 | 12,019 | 14,057 | 12,097 | ||||||||||||||
Total Classified | 80,843 | 71,038 | 54,540 | 68,152 | 67,477 | ||||||||||||||
Criticized and Classified Loans | $ | 138,976 | $ | 141,715 | $ | 141,327 | $ | 146,680 | $ | 134,883 | |||||||||
Loans 30-89 days past due and accruing 17 | $ | 4,179 | $ | 2,434 | $ | 17,715 | $ | 22,299 | $ | 11,607 | |||||||||
16 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. 17 In addition to loans 30-89 days past due and accruing, at June 30, 2019, the Company had one loan totaling $0.9 million that was more than 90 days past due but still on accrual status. This loan originated in the New England region. The Company had no loans outstanding more than 90 days past due but still on accrual status in comparative periods. | |||||||||||||||||||
BOSTON PRIVATE FINANCIAL HOLDINGS, INC. | ||||||||||||||||||||||||||
Average Balances, Yields, and Rates | ||||||||||||||||||||||||||
Unaudited ($ in thousands) | ||||||||||||||||||||||||||
Average Balance | Interest Income/Expense | Average Yield/Rate | ||||||||||||||||||||||||
3Q19 | 2Q19 | 3Q18 | 3Q19 | 2Q19 | 3Q18 | 3Q19 | 2Q19 | 3Q18 | ||||||||||||||||||
INTEREST-EARNING ASSETS | ||||||||||||||||||||||||||
Cash and investments: | ||||||||||||||||||||||||||
Taxable investment securities | $ | 198,655 | $ | 227,029 | $ | 324,583 | $ | 938 | $ | 1,121 | $ | 1,510 | 1.95 | % | 1.98 | % | 1.86 | % | ||||||||
Non-taxable investment securities | 305,108 | 304,309 | 297,710 | 1,924 | 1,901 | 1,779 | 2.52 | % | 2.50 | % | 2.39 | % | ||||||||||||||
Mortgage-backed securities | 492,514 | 508,033 | 552,820 | 2,622 | 2,706 | 2,941 | 2.13 | % | 2.13 | % | 2.13 | % | ||||||||||||||
Short-term investments and other | 101,958 | 130,363 | 204,814 | 1,084 | 1,057 | 1,617 | 4.06 | % | 3.23 | % | 3.11 | % | ||||||||||||||
Total cash and investments | 1,098,235 | 1,169,734 | 1,379,927 | 6,568 | 6,785 | 7,847 | 2.39 | % | 2.32 | % | 2.27 | % | ||||||||||||||
Loans: 18 | ||||||||||||||||||||||||||
Commercial and industrial | 1,101,672 | 1,091,903 | 998,817 | 11,523 | 11,170 | 9,894 | 4.09 | % | 4.05 | % | 3.88 | % | ||||||||||||||
Commercial real estate | 2,518,048 | 2,506,637 | 2,475,143 | 29,118 | 29,953 | 29,482 | 4.52 | % | 4.73 | % | 4.66 | % | ||||||||||||||
Construction and land | 195,843 | 202,609 | 179,248 | 2,410 | 2,559 | 2,193 | 4.82 | % | 5.00 | % | 4.79 | % | ||||||||||||||
Residential | 3,016,265 | 3,008,753 | 2,836,593 | 25,567 | 25,735 | 23,907 | 3.39 | % | 3.42 | % | 3.37 | % | ||||||||||||||
Home equity | 89,068 | 91,384 | 94,050 | 1,121 | 1,146 | 1,089 | 4.99 | % | 5.03 | % | 4.59 | % | ||||||||||||||
Other consumer | 127,987 | 124,778 | 163,224 | 1,297 | 1,380 | 1,689 | 4.02 | % | 4.43 | % | 4.11 | % | ||||||||||||||
Total loans | 7,048,883 | 7,026,064 | 6,747,075 | 71,036 | 71,943 | 68,254 | 3.98 | % | 4.07 | % | 3.99 | % | ||||||||||||||
Total earning assets | 8,147,118 | 8,195,798 | 8,127,002 | 77,604 | 78,728 | 76,101 | 3.76 | % | 3.82 | % | 3.70 | % | ||||||||||||||
LESS: Allowance for loan losses | 75,199 | 73,856 | 73,861 | |||||||||||||||||||||||
Cash and due from banks | 49,065 | 45,705 | 46,056 | |||||||||||||||||||||||
Other assets | 544,368 | 511,859 | 392,757 | |||||||||||||||||||||||
TOTAL AVERAGE ASSETS | $ | 8,665,352 | $ | 8,679,506 | $ | 8,491,954 | ||||||||||||||||||||
INTEREST-BEARING LIABILITIES | ||||||||||||||||||||||||||
Interest-bearing deposits: 19 | ||||||||||||||||||||||||||
Savings and NOW | $ | 615,730 | $ | 684,507 | $ | 693,419 | $ | 275 | $ | 276 | $ | 301 | 0.18 | % | 0.16 | % | 0.17 | % | ||||||||
Money market | 3,378,006 | 3,226,569 | 3,244,628 | 11,523 | 10,476 | 8,110 | 1.35 | % | 1.30 | % | 0.99 | % | ||||||||||||||
Certificates of deposit | 711,299 | 752,500 | 730,117 | 3,689 | 3,763 | 3,076 | 2.06 | % | 2.01 | % | 1.67 | % | ||||||||||||||
Total interest-bearing deposits 19 | 4,705,035 | 4,663,576 | 4,668,164 | 15,487 | 14,515 | 11,487 | 1.31 | % | 1.25 | % | 0.98 | % | ||||||||||||||
Junior subordinated debentures | 106,363 | 106,363 | 106,363 | 1,022 | 1,080 | 1,028 | 3.76 | % | 4.02 | % | 3.78 | % | ||||||||||||||
FHLB borrowings and other | 833,535 | 952,645 | 768,015 | 4,942 | 5,673 | 3,945 | 2.32 | % | 2.36 | % | 2.01 | % | ||||||||||||||
Total interest-bearing liabilities 19 | 5,644,933 | 5,722,584 | 5,542,542 | 21,451 | 21,268 | 16,460 | 1.50 | % | 1.48 | % | 1.17 | % | ||||||||||||||
Non-interest bearing demand deposits 19 | 1,953,214 | 1,926,591 | 2,063,642 | |||||||||||||||||||||||
Other liabilities | 258,371 | 238,544 | 135,508 | |||||||||||||||||||||||
Total average liabilities | 7,856,518 | 7,887,719 | 7,741,692 | |||||||||||||||||||||||
Redeemable noncontrolling interests | 944 | 943 | 13,074 | |||||||||||||||||||||||
Average shareholders’ equity | 807,890 | 790,844 | 737,188 | |||||||||||||||||||||||
TOTAL AVERAGE LIABILITIES, RNCI, AND SHAREHOLDERS’ EQUITY | $ | 8,665,352 | $ | 8,679,506 | $ | 8,491,954 | ||||||||||||||||||||
Net interest income | $ | 56,153 | $ | 57,460 | $ | 59,641 | ||||||||||||||||||||
Interest rate spread | 2.26 | % | 2.34 | % | 2.53 | % | ||||||||||||||||||||
Net interest margin | 2.72 | % | 2.78 | % | 2.90 | % | ||||||||||||||||||||
Average total deposits 19 | $ | 6,658,249 | $ | 6,590,167 | $ | 6,731,806 | 0.92 | % | 0.88 | % | 0.68 | % | ||||||||||||||
Average total deposits and borrowings 19 | $ | 7,598,147 | $ | 7,649,175 | $ | 7,606,184 | 1.12 | % | 1.11 | % | 0.86 | % | ||||||||||||||
18 Average loans includes Loans held for sale and Nonaccrual loans 19 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 | ||||||||||||||||
Nine Months Ended | Nine Months Ended | Nine Months Ended | ||||||||||||||||
INTEREST-EARNING ASSETS | 9/30/19 | 9/30/18 | 9/30/19 | 9/30/18 | 9/30/19 | 9/30/18 | ||||||||||||
Cash and investments: | ||||||||||||||||||
Taxable investment securities | $ | 223,072 | $ | 328,054 | $ | 3,244 | $ | 4,521 | 1.94 | % | 1.84 | % | ||||||
Non-taxable investment securities | 305,422 | 297,509 | 5,726 | 5,261 | 2.50 | % | 2.36 | % | ||||||||||
Mortgage-backed securities | 507,338 | 570,578 | 8,225 | 9,168 | 2.16 | % | 2.14 | % | ||||||||||
Short-term investments and other | 104,225 | 174,736 | 3,049 | 3,831 | 3.78 | % | 2.91 | % | ||||||||||
Total cash and investments | 1,140,057 | 1,370,877 | 20,244 | 22,781 | 2.36 | % | 2.21 | % | ||||||||||
Loans: 18 | ||||||||||||||||||
Commercial and industrial | 1,088,027 | 969,063 | 33,673 | 27,554 | 4.08 | % | 3.75 | % | ||||||||||
Commercial real estate | 2,474,804 | 2,464,788 | 87,222 | 83,020 | 4.65 | % | 4.44 | % | ||||||||||
Construction and land | 203,211 | 171,825 | 7,610 | 6,142 | 4.94 | % | 4.71 | % | ||||||||||
Residential | 2,999,480 | 2,771,875 | 76,847 | 68,263 | 3.42 | % | 3.28 | % | ||||||||||
Home equity | 90,361 | 95,217 | 3,388 | 3,172 | 5.01 | % | 4.45 | % | ||||||||||
Other consumer | 128,879 | 176,086 | 4,172 | 5,080 | 4.33 | % | 3.86 | % | ||||||||||
Total loans | 6,984,762 | 6,648,854 | 212,912 | 193,231 | 4.04 | % | 3.85 | % | ||||||||||
Total earning assets | 8,124,819 | 8,019,731 | 233,156 | 216,012 | 3.80 | % | 3.57 | % | ||||||||||
LESS: Allowance for loan losses | 74,863 | 73,894 | ||||||||||||||||
Cash and due from banks (non-interest bearing) | 46,906 | 47,859 | ||||||||||||||||
Other assets | 516,642 | 404,375 | ||||||||||||||||
TOTAL AVERAGE ASSETS | $ | 8,613,504 | $ | 8,398,071 | ||||||||||||||
INTEREST-BEARING LIABILITIES | ||||||||||||||||||
Interest-bearing deposits: 19 | ||||||||||||||||||
Savings and NOW | $ | 658,154 | $ | 709,751 | $ | 847 | $ | 820 | 0.17 | % | 0.15 | % | ||||||
Money market | 3,317,117 | 3,139,107 | 32,072 | 17,967 | 1.29 | % | 0.77 | % | ||||||||||
Certificates of deposit | 746,453 | 691,670 | 11,141 | 7,589 | 2.00 | % | 1.47 | % | ||||||||||
Total interest-bearing deposits 19 | 4,721,724 | 4,540,528 | 44,060 | 26,376 | 1.25 | % | 0.78 | % | ||||||||||
Junior subordinated debentures | 106,363 | 106,363 | 3,223 | 2,882 | 4.05 | % | 3.62 | % | ||||||||||
FHLB borrowings and other | 801,519 | 889,178 | 13,922 | 12,185 | 2.29 | % | 1.81 | % | ||||||||||
Total interest-bearing liabilities 19 | 5,629,606 | 5,536,069 | 61,205 | 41,443 | 1.45 | % | 1.00 | % | ||||||||||
Non-interest bearing demand deposits 19 | 1,949,948 | 1,948,573 | ||||||||||||||||
Payables and other liabilities | 243,370 | 130,410 | ||||||||||||||||
Total average liabilities | 7,822,924 | 7,615,052 | ||||||||||||||||
Redeemable noncontrolling interests | 1,642 | 16,294 | ||||||||||||||||
Average shareholders’ equity | 788,938 | 766,725 | ||||||||||||||||
TOTAL AVERAGE LIABILITIES, RNCI, AND SHAREHOLDERS’ EQUITY | $ | 8,613,504 | $ | 8,398,071 | ||||||||||||||
Net interest income | $ | 171,951 | $ | 174,569 | ||||||||||||||
Interest rate spread | 2.35 | % | 2.57 | % | ||||||||||||||
Net interest margin | 2.80 | % | 2.88 | % | ||||||||||||||
Average total deposits 19 | $ | 6,671,672 | $ | 6,489,101 | 0.88 | % | 0.54 | % | ||||||||||
Average total deposits and borrowings 19 | $ | 7,579,554 | $ | 7,484,642 | 1.08 | % | 0.74 | % | ||||||||||
18 Average loans includes Loans held for sale and Nonaccrual loans 19 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 | |||||||||||||||||||
Unaudited ($ in thousands) | |||||||||||||||||||
3Q19 | 2Q19 | 1Q19 | 4Q18 | 3Q18 | |||||||||||||||
LOANS: 20 | |||||||||||||||||||
New England | $ | 3,868,690 | $ | 3,957,221 | $ | 3,901,644 | $ | 3,890,607 | $ | 3,783,032 | |||||||||
San Francisco Bay Area | 1,559,569 | 1,538,441 | 1,499,626 | 1,488,017 | 1,491,528 | ||||||||||||||
Southern California | 1,638,892 | 1,584,598 | 1,525,698 | 1,514,534 | 1,445,860 | ||||||||||||||
Total loans | $ | 7,067,151 | $ | 7,080,260 | $ | 6,926,968 | $ | 6,893,158 | $ | 6,720,420 | |||||||||
Loans (charged-off) / recovered, net: | |||||||||||||||||||
New England | $ | 275 | $ | 31 | $ | 222 | $ | (100 | ) | $ | 232 | ||||||||
San Francisco Bay Area | 6 | 20 | 18 | 1,804 | 706 | ||||||||||||||
Southern California | (156 | ) | (161 | ) | (312 | ) | 15 | 47 | |||||||||||
Total net loans (charged-off) / recovered | $ | 125 | $ | (110 | ) | $ | (72 | ) | $ | 1,719 | $ | 985 | |||||||
Special mention loans: | |||||||||||||||||||
New England | $ | 19,828 | $ | 35,235 | $ | 34,675 | $ | 31,147 | $ | 20,382 | |||||||||
San Francisco Bay Area | 4,821 | 10,360 | 23,486 | 18,585 | 18,359 | ||||||||||||||
Southern California | 33,484 | 25,082 | 28,626 | 28,796 | 28,665 | ||||||||||||||
Total special mention loans | $ | 58,133 | $ | 70,677 | $ | 86,787 | $ | 78,528 | $ | 67,406 | |||||||||
Accruing classified loans: | |||||||||||||||||||
New England | $ | 21,830 | $ | 13,012 | $ | 15,830 | $ | 10,392 | $ | 10,083 | |||||||||
San Francisco Bay Area | 23,938 | 25,957 | 20,801 | 24,584 | 24,252 | ||||||||||||||
Southern California | 17,510 | 14,914 | 5,890 | 19,119 | 21,045 | ||||||||||||||
Total accruing classified loans | $ | 63,278 | $ | 53,883 | $ | 42,521 | $ | 54,095 | $ | 55,380 | |||||||||
Nonaccruing loans: | |||||||||||||||||||
New England | $ | 8,999 | $ | 8,837 | $ | 6,161 | $ | 6,728 | $ | 5,131 | |||||||||
San Francisco Bay Area | 2,395 | 2,644 | 2,480 | 2,488 | 1,169 | ||||||||||||||
Southern California | 6,171 | 5,674 | 3,378 | 4,841 | 5,797 | ||||||||||||||
Total nonaccruing loans | $ | 17,565 | $ | 17,155 | $ | 12,019 | $ | 14,057 | $ | 12,097 | |||||||||
20 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) | |||||||||||||||||||
3Q19 | 2Q19 | 1Q19 | 4Q18 | 3Q18 | |||||||||||||||
ROACE AND ROATCE: | |||||||||||||||||||
Net income attributable to the Company (GAAP) (A) | $ | 19,962 | $ | 19,380 | $ | 19,442 | $ | 33,302 | $ | 17,962 | |||||||||
ADD: Amortization of intangibles, net of tax | 530 | 531 | 531 | 537 | 593 | ||||||||||||||
Tangible common net income (non-GAAP) (B) | $ | 20,492 | $ | 19,911 | $ | 19,973 | $ | 33,839 | $ | 18,555 | |||||||||
Total average shareholders’ equity (C) | $ | 807,890 | $ | 790,844 | $ | 766,283 | $ | 739,313 | $ | 737,188 | |||||||||
LESS: Average goodwill and intangible assets, net | (68,359 | ) | (68,889 | ) | (69,498 | ) | (83,153 | ) | (89,830 | ) | |||||||||
Average tangible common equity (non-GAAP) (D) | $ | 739,531 | $ | 721,955 | $ | 696,785 | $ | 656,160 | $ | 647,358 | |||||||||
ROACE (annualized) (A / C) | 9.80 | % | 9.83 | % | 10.29 | % | 17.87 | % | 9.67 | % | |||||||||
ROATCE (annualized) (B / D) | 10.99 | % | 11.06 | % | 11.63 | % | 20.46 | % | 11.37 | % | |||||||||
PRE-TAX, PRE-PROVISION INCOME: | |||||||||||||||||||
Income before income taxes (GAAP) | $ | 25,575 | $ | 24,818 | $ | 24,459 | $ | 42,192 | $ | 24,347 | |||||||||
ADD BACK: Provision/ (credit) for loan losses | 167 | 1,363 | (1,426 | ) | 93 | (949 | ) | ||||||||||||
Pre-tax, pre-provision income (non-GAAP) | $ | 25,742 | $ | 26,181 | $ | 23,033 | $ | 42,285 | $ | 23,398 | |||||||||
CORE NET INTEREST INCOME AND MARGIN: | |||||||||||||||||||
Net interest income (GAAP) | $ | 56,153 | $ | 57,460 | $ | 58,338 | $ | 59,997 | $ | 59,641 | |||||||||
LESS: Interest recovered on previous nonaccrual loans | 180 | — | 258 | 986 | 986 | ||||||||||||||
Net interest income, excluding interest recovered while loans on nonaccrual status ("Core net interest income") (non-GAAP) | $ | 55,973 | $ | 57,460 | $ | 58,080 | $ | 59,011 | $ | 58,655 | |||||||||
Net interest margin, excluding interest recovered while loans on nonaccrual status ("Core net interest margin") (non-GAAP) | 2.71 | % | 2.78 | % | 2.89 | % | 2.90 | % | 2.90 | % | |||||||||
TANGIBLE COMMON EQUITY: | |||||||||||||||||||
Total Shareholders’ Equity (GAAP) | $ | 808,688 | $ | 798,211 | $ | 778,819 | $ | 753,954 | $ | 738,009 | |||||||||
LESS: Goodwill and intangible assets, net | (68,229 | ) | (68,491 | ) | (69,162 | ) | (69,834 | ) | (89,432 | ) | |||||||||
Tangible common equity (non-GAAP) (A) | $ | 740,459 | $ | 729,720 | $ | 709,657 | $ | 684,120 | $ | 648,577 | |||||||||
Total Assets (GAAP) | $ | 8,690,944 | $ | 8,712,873 | $ | 8,572,143 | $ | 8,494,625 | $ | 8,375,840 | |||||||||
LESS: Goodwill and intangible assets, net | (68,229 | ) | (68,491 | ) | (69,162 | ) | (69,834 | ) | (89,432 | ) | |||||||||
Tangible assets (non-GAAP) (B) | $ | 8,622,715 | $ | 8,644,382 | $ | 8,502,981 | $ | 8,424,791 | $ | 8,286,408 | |||||||||
End of Period Shares Outstanding (C) | 83,241,952 | 83,774,335 | 83,773,650 | 83,655,651 | 84,602,519 | ||||||||||||||
Tangible common equity/ Tangible assets (non-GAAP) (A / B) | 8.59 | % | 8.44 | % | 8.35 | % | 8.12 | % | 7.83 | % | |||||||||
Tangible Book Value Per Share (non-GAAP) (A / C) | $ | 8.90 | $ | 8.71 | $ | 8.47 | $ | 8.18 | $ | 7.67 | |||||||||
BOSTON PRIVATE FINANCIAL HOLDINGS, INC. | |||||||||||||||||||
Reconciliations of Non-GAAP Financial Measures | |||||||||||||||||||
Unaudited ($ in thousands) | |||||||||||||||||||
3Q19 | 2Q19 | 1Q19 | 4Q18 | 3Q18 | |||||||||||||||
RETURN ON AVERAGE ASSETS: | |||||||||||||||||||
Net income (GAAP) (A) | $ | 19,962 | $ | 19,380 | $ | 19,442 | $ | 33,302 | $ | 17,962 | |||||||||
Average Assets (non-GAAP) (B) | 8,665,352 | 8,679,506 | 8,493,725 | 8,445,298 | 8,491,954 | ||||||||||||||
Return on average assets (non-GAAP) (A / B) | 0.91 | % | 0.90 | % | 0.93 | % | 1.56 | % | 0.84 | % | |||||||||
EFFICIENCY RATIO: | |||||||||||||||||||
Total noninterest expense (GAAP) (A) | $ | 55,537 | $ | 55,659 | $ | 60,553 | $ | 63,557 | $ | 68,557 | |||||||||
Less: Amortization of intangibles | 671 | 672 | 672 | 680 | 750 | ||||||||||||||
Less: Restructuring | — | — | 1,646 | 2,065 | 5,763 | ||||||||||||||
Total noninterest expense (non-GAAP) (B) | $ | 54,866 | $ | 54,987 | $ | 58,235 | $ | 60,812 | $ | 62,044 | |||||||||
Net interest income (GAAP) | $ | 56,153 | $ | 57,460 | $ | 58,338 | $ | 59,997 | $ | 59,641 | |||||||||
Total core fees and income (GAAP) | 25,155 | 24,292 | 24,280 | 28,691 | 31,592 | ||||||||||||||
Gain on sale of affiliate (GAAP) | — | — | — | 18,142 | — | ||||||||||||||
Total other income (GAAP) | (29 | ) | 88 | 968 | (988 | ) | 722 | ||||||||||||
Total revenue (C) | $ | 81,279 | $ | 81,840 | $ | 83,586 | $ | 105,842 | $ | 91,955 | |||||||||
Efficiency ratio (GAAP) (A / C) | 68.3 | % | 68.0 | % | 72.4 | % | 60.0 | % | 74.6 | % | |||||||||
Efficiency ratio, excluding amortization of intangibles and restructuring, if any (non-GAAP) (B / C) | 67.5 | % | 67.2 | % | 69.7 | % | 57.1 | % | 67.0 | % | |||||||||
OTHER INCOME: (GAAP) | |||||||||||||||||||
Gain/ (loss) on sale of investments, net | $ | — | $ | — | $ | — | $ | (596 | ) | $ | — | ||||||||
Gain/ (loss) on OREO, net | — | — | 91 | — | — | ||||||||||||||
Gain on sale of affiliate | — | — | — | 18,142 | — | ||||||||||||||
Other | (29 | ) | 88 | 877 | (392 | ) | 722 | ||||||||||||
Total other income (GAAP) | $ | (29 | ) | $ | 88 | $ | 968 | $ | 17,154 | $ | 722 | ||||||||
BOSTON PRIVATE FINANCIAL HOLDINGS, INC. | |||||||||||||||||||
Reconciliations of Non-GAAP measures: Operating Adjustments | |||||||||||||||||||
Unaudited ($ in thousands, except share and per share data) | |||||||||||||||||||
3Q19 | 2Q19 | 1Q19 | 4Q18 | 3Q18 | |||||||||||||||
NET INCOME ATTRIBUTABLE TO THE COMPANY: | |||||||||||||||||||
NET INCOME ATTRIBUTABLE TO THE COMPANY (GAAP) | $ | 19,962 | $ | 19,380 | $ | 19,442 | $ | 33,302 | $ | 17,962 | |||||||||
LESS: Gain on sale of affiliate | — | — | — | 18,142 | — | ||||||||||||||
ADD: Information services 21 | — | — | — | (441 | ) | — | |||||||||||||
ADD: Restructuring | — | — | 1,646 | 2,065 | 5,763 | ||||||||||||||
ADD: Tax adjustments 22 | — | — | — | 3,502 | — | ||||||||||||||
Tax effect at statutory rate | — | — | (346 | ) | (341 | ) | (1,210 | ) | |||||||||||
NET INCOME ATTRIBUTABLE TO THE COMPANY (NON-GAAP) | $ | 19,962 | $ | 19,380 | $ | 20,742 | $ | 19,945 | $ | 22,515 | |||||||||
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS: | |||||||||||||||||||
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS (GAAP) | $ | 20,266 | $ | 18,564 | $ | 20,999 | $ | 35,996 | $ | 17,133 | |||||||||
LESS: Gain on sale of affiliate | — | — | — | 18,142 | — | ||||||||||||||
ADD: Information services 21 | — | — | — | (441 | ) | — | |||||||||||||
ADD: Restructuring | — | — | 1,646 | 2,065 | 5,763 | ||||||||||||||
ADD: Tax adjustments 22 | — | — | — | 3,502 | — | ||||||||||||||
Tax effect at statutory rate | — | — | (346 | ) | (341 | ) | (1,210 | ) | |||||||||||
Net income attributable to the common shareholders, treasury stock method, excluding notable items (non-GAAP) | $ | 20,266 | $ | 18,564 | $ | 22,299 | $ | 22,639 | $ | 21,686 | |||||||||
Weighted average diluted shares outstanding | 83,956,708 | 84,048,972 | 84,010,450 | 84,863,779 | 85,498,568 | ||||||||||||||
Diluted total earnings per share (GAAP) | $ | 0.24 | $ | 0.22 | $ | 0.25 | $ | 0.42 | $ | 0.20 | |||||||||
Diluted total earnings per share, excluding notable items (non-GAAP) | $ | 0.24 | $ | 0.22 | $ | 0.27 | $ | 0.27 | $ | 0.25 | |||||||||
Average common equity (non-GAAP) | $ | 807,890 | $ | 790,844 | $ | 766,283 | $ | 739,313 | $ | 737,188 | |||||||||
Average tangible common equity (non-GAAP) | $ | 739,531 | $ | 721,955 | $ | 696,785 | $ | 656,160 | $ | 647,358 | |||||||||
Return on average common equity, excluding notable items (non-GAAP) | 9.80 | % | 9.83 | % | 10.98 | % | 10.70 | % | 12.12 | % | |||||||||
Return on average tangible common equity, excluding notable items (non-GAAP) | 10.99 | % | 11.06 | % | 12.38 | % | 12.38 | % | 14.16 | % | |||||||||
Pre-tax, pre-provision income (non-GAAP) | $ | 25,742 | $ | 26,181 | $ | 23,033 | $ | 42,285 | $ | 23,398 | |||||||||
LESS: Gain on sale of affiliate | — | — | — | 18,142 | — | ||||||||||||||
ADD: Information services 21 | — | — | — | (441 | ) | — | |||||||||||||
ADD: Restructuring | — | — | 1,646 | 2,065 | 5,763 | ||||||||||||||
Pre-tax, pre-provision income, excluding notable items (non-GAAP) | $ | 25,742 | $ | 26,181 | $ | 24,679 | $ | 25,767 | $ | 29,161 | |||||||||
21 In the fourth quarter of 2018, $0.4 million of Information services expense was reclassified to Restructuring expense in conjunction with the announcement of the Company's formal restructuring plan. 22 Additional tax expense in the fourth quarter of 2018 relates to the completion of the sale of BOS. | |||||||||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20191024005951/en/
Contacts:
(617) 912-4386
abromley@bostonprivate.com
