Boston Private Financial Holdings, Inc. (NASDAQ: BPFH) (the “Company” or “BPFH”) today reported fourth quarter 2019 Net income attributable to the Company of $21.2 million, compared to $20.0 million for the third quarter of 2019 and $33.3 million for the fourth quarter of 2018. Fourth quarter 2019 Diluted earnings per share were $0.26, compared to $0.24 in the third quarter of 2019 and $0.42 in the fourth quarter of 2018.
"Our fourth quarter results reflect linked quarter net income growth as continued strength in asset quality drove a provision credit," said Anthony DeChellis, CEO of Boston Private. "During the quarter, we increased our client advisor count, while achieving key technology milestones. As we move into 2020 and execute on our growth initiatives, investing in talent and technology will remain the key priorities to achieving our strategic objectives."
Summary Financial Results - Reported | ||||||||||
% Change | ||||||||||
($ in millions, except for per share data) | 4Q19 | 3Q19 | 4Q18 | LQ | Y/Y | |||||
Net income | $21.2 | $20.0 | $33.3 | 6% | (36)% | |||||
Diluted earnings per share | $0.26 | $0.24 | $0.42 | 8% | (38)% | |||||
Non-GAAP Financial Measures: | ||||||||||
Pre-tax, pre-provision income | $24.5 | $25.7 | $42.3 | (5)% | (42)% | |||||
Return on average common equity ("ROACE") | 10.3% | 9.8% | 17.9% | |||||||
Return on average tangible common equity ("ROATCE") | 11.5% | 11.0% | 20.5% | |||||||
The Company's reported financial results decreased year-over-year primarily as a result of a gain on sale related to the divestiture of BOS in the fourth quarter of 2018.
In addition to presenting the Company’s results in conformity with GAAP, the Company uses certain non-GAAP financial measures to provide information for investors to effectively analyze financial trends of ongoing business activities, and to enhance comparability with peers across the financial sector. For additional information on non-GAAP measures, see page 6. A reconciliation of GAAP to non-GAAP results can be found beginning on page 17.
Summary Financial Results - Operating Basis (non-GAAP) | ||||||||||
% Change | ||||||||||
($ in millions, except for per share data) | 4Q191 | 3Q19 | 4Q182 | LQ | Y/Y | |||||
Net income | $20.5 | $20.0 | $19.9 | 2% | 3% | |||||
Diluted earnings per share | $0.25 | $0.24 | $0.27 | 2% | (8)% | |||||
Pre-tax, pre-provision income | $23.4 | $25.7 | $25.8 | (9)% | (9)% | |||||
Return on average common equity | 9.9% | 9.8% | 10.7% | |||||||
Return on average tangible common equity | 11.1% | 11.0% | 12.4% | |||||||
14Q19 results adjusted to exclude the net after-tax impact of $1.1 million gain related to the revaluation of a receivable from the divestiture of BOS and $0.3 million of tax expense 24Q18 results adjusted to exclude the net after-tax impact of $18.1 million gain on sale and $3.2 million tax expense related to the divestiture of BOS and $1.6 million restructuring expense | ||||||||||
Divested Affiliates
The Company completed the sale of Bingham, Osborn & Scarborough LLC ("BOS") during 2018. Financial results from BOS remain consolidated in the Company's financial results through the closing date of December 3, 2018. For presentation purposes, BOS's AUM is excluded from AUM amounts, but is included in the calculation of Core fees and income. The discussion below includes non-GAAP measures that exclude the contributions from BOS in order to enhance comparability of trends in the core business.
Net Interest Income and Margin | ||||||||||
% Change | ||||||||||
($ in millions) | 4Q19 | 3Q19 | 4Q18 | LQ | Y/Y | |||||
Net interest income | $56.1 | $56.2 | $60.0 | —% | (6)% | |||||
Less: Interest recovered on previous nonaccrual loans | — | 0.2 | 1.0 | (87)% | (98)% | |||||
Core net interest income (non-GAAP) | $56.1 | $56.0 | $59.0 | — % | (5)% | |||||
Net interest margin | 2.70% | 2.72% | 2.94% | |||||||
Core net interest margin (non-GAAP) | 2.70% | 2.71% | 2.90% | |||||||
nm = not meaningful | ||||||||||
Net interest income for the fourth quarter of 2019 was $56.1 million, flat linked quarter and a 6% decrease year-over-year. Core net interest income, which excludes interest recovered on previous nonaccrual loans, was flat linked quarter and decreased 5% year-over-year. The linked quarter comparison was positively impacted by lower deposit costs, lower borrowing costs, and lower borrowing volumes, while it was negatively impacted by variable rate loans repricing lower.
The Company’s Core net interest margin, which excludes interest recovered on previous nonaccrual loans, decreased 1 basis point on a linked quarter basis to 2.70% as net interest income was flat and interest-earning assets increased 1%. Client deposit inflows during the fourth quarter enabled the repayment of higher cost borrowings, which contributed to a linked quarter decrease of 13 basis points in the total cost of funds from 1.12% to 0.99%.
Noninterest Income | ||||||||||
% Change | ||||||||||
($ in millions) | 4Q19 | 3Q19 | 4Q18 | LQ | Y/Y | |||||
Wealth management and trust fees | $18.7 | $19.1 | $23.8 | (2)% | (21)% | |||||
Investment management fees | 2.6 | 2.5 | 2.8 | 2% | (10)% | |||||
Private banking fees 3 | 3.5 | 3.6 | 2.1 | (3)% | 68% | |||||
Total core fees and income | $24.8 | $25.2 | $28.7 | (2)% | (14)% | |||||
Total other income | 2.0 | — | 17.2 | nm | (88)% | |||||
Total noninterest income | $26.8 | $25.1 | $45.8 | 7 % | (42)% | |||||
Memo: Excluding BOS and Notable Items | ||||||||||
Wealth management and trust fees (non-GAAP) 4 | $18.7 | $19.1 | $20.0 | (2)% | (6)% | |||||
Investment management fees | 2.6 | 2.5 | 2.8 | 2% | (10)% | |||||
Private banking fees | 3.5 | 3.6 | 2.1 | (3)% | 68% | |||||
Total core fees and income (non-GAAP) 4 | $24.8 | $25.2 | $24.9 | (2)% | — % | |||||
Total other income (non-GAAP) 5 | 0.9 | — | (1.0) | nm | nm | |||||
Total noninterest income (non-GAAP) 4 5 | $25.7 | $25.1 | $23.9 | 2 % | 8 % | |||||
3 Private banking fees includes Other banking fee income and Gain/ (loss) on sale of loans, net 4 Excludes BOS revenue of $3.9 million in 4Q18 5 Excludes $18.1 million gain on sale related to BOS in 4Q18 and $1.1 gain related to revaluation of a receivable from the divestiture of BOS in 4Q19 | ||||||||||
Total core fees and income for the fourth quarter of 2019 was $24.8 million, a 2% decrease linked quarter, primarily driven by lower Wealth management and trust fees. The 14% decline year-over-year was primarily driven by the divestiture of BOS.
Excluding BOS and Notable Items, Total core fees and income (non-GAAP) were flat year-over-year primarily driven by higher Private banking fees associated with higher swap fees and gain on sale of loans, partially offset by lower Wealth management and trust fees associated with negative net flows.
Assets Under Management / Advisory | ||||||||||
% Change | ||||||||||
($ in millions) | 4Q19 | 3Q19 | 4Q18 | LQ | Y/Y | |||||
Wealth Management and Trust | $15,224 | $14,695 | $14,206 | 4% | 7% | |||||
Other 6 | 1,544 | 1,533 | 1,715 | 1% | (10)% | |||||
Total assets under management / advisory | $16,768 | $16,228 | $15,921 | 3 % | 5 % | |||||
6 Includes results from Dalton, Greiner, Hartman, Maher & Co, LLC ("DGHM") | ||||||||||
Total assets under management / advisory were $16.8 billion at the end of the fourth quarter of 2019, a 3% increase linked quarter and 5% increase year-over-year. The linked quarter and year-over-year comparisons were impacted by positive market action partially offset by negative net flows.
Total net flows were negative $209 million during the fourth quarter of 2019, of which $114 million were attributable to the Wealth Management and Trust segment.
Noninterest Expense | ||||||||||
% Change | ||||||||||
($ in millions) | 4Q19 | 3Q19 | 4Q18 | LQ | Y/Y | |||||
Salaries and employee benefits | $34.2 | $31.7 | $36.0 | 8% | (5)% | |||||
Occupancy and equipment | 7.6 | 8.3 | 8.0 | (8)% | (5)% | |||||
Professional services | 3.9 | 4.4 | 4.2 | (12)% | (7)% | |||||
Marketing and business development | 2.0 | 1.4 | 2.3 | 44% | (11)% | |||||
Information systems | 6.5 | 5.2 | 6.3 | 25% | 3% | |||||
Amortization of intangibles | 0.7 | 0.7 | 0.7 | 1% | (1)% | |||||
FDIC insurance | — | 0.1 | 0.7 | nm | nm | |||||
Restructuring | — | — | 2.1 | —% | (100)% | |||||
Other | 3.6 | 3.9 | 3.3 | (6)% | 10% | |||||
Total noninterest expense | $58.5 | $55.5 | $63.6 | 5 % | (8)% | |||||
Memo: Excluding Notable Items and BOS | ||||||||||
Information systems 6 | — | — | (0.4) | nm | (100)% | |||||
Restructuring | — | — | 2.1 | nm | (100)% | |||||
BOS noninterest expense | — | — | 2.8 | nm | (100)% | |||||
Total noninterest expense (non-GAAP) | $58.5 | $55.5 | $59.1 | 5 % | (1)% | |||||
6 $0.4 million of Information systems expense was reclassified to Restructuring expense in conjunction with a formal restructuring plan announced in 4Q18 | ||||||||||
Total noninterest expense increased 5% linked quarter primarily driven by higher salaries and employee benefits expense and Information systems expense related to technology investments placed in service during the fourth quarter of 2019, partially offset by lower occupancy and equipment and professional services.
Excluding Notable Items and BOS, Total noninterest expense (non-GAAP) for the fourth quarter of 2019 was $58.5 million, down 1% year-over-year, primarily driven by an FDIC insurance assessment credit received in the fourth quarter of 2019.
Income Tax Expense
The Company's effective tax rate for the fourth quarter of 2019 was 24.1%. This rate is higher than prior quarters of 2019 primarily as a result of a slight increase in the full year effective tax rate as compared to the estimated annual effective tax rate in prior quarters. The effective tax rate for the full year 2019 was 21.9%.
Loans and Deposits - QTD Averages | ||||||||||
% Change | ||||||||||
($ in millions) | 4Q19 | 3Q19 | 4Q18 | LQ | Y/Y | |||||
Commercial and industrial | $1,142 | $1,102 | $1,027 | 4% | 11% | |||||
Commercial real estate | 2,562 | 2,518 | 2,402 | 2% | 7% | |||||
Construction and land | 217 | 196 | 209 | 11% | 3% | |||||
Residential | 2,935 | 3,016 | 2,907 | (3)% | 1% | |||||
Home equity | 85 | 89 | 94 | (5)% | (10)% | |||||
Other consumer | 132 | 128 | 141 | 3% | (6)% | |||||
Total loans | $7,073 | $7,049 | $6,781 | — % | 4 % | |||||
Non-interest bearing deposits | 2,002 | 1,953 | 2,092 | 2% | (4)% | |||||
Interest bearing deposits | 4,957 | 4,705 | 4,826 | 5% | 3% | |||||
Total deposits | $6,959 | $6,658 | $6,918 | 5 % | 1 % | |||||
Non-interest bearing deposits as a % of Total deposits | 29% | 29% | 30% | |||||||
Average total loans in the fourth quarter of 2019 increased 4% year-over-year, while remaining flat linked quarter. Linked quarter averages were impacted by commercial real estate growth and increased line of credit borrowings (included in Commercial and industrial loans), partially offset by a residential loan sale of $100 million during the fourth quarter.
Average total deposits increased 1% year-over-year, primarily driven by an increase in money market accounts, partially offset by a decline in demand deposit accounts and certificates of deposits. The decline in certificates of deposit was driven by the run-off of brokered certificates of deposits, which declined $135 million year-over-year or 2% of fourth quarter 2018 total deposits.
The cost of total deposits was 0.86%, a decrease of 6 basis points linked quarter.
Provision and Asset Quality | ||||||||||
($ in millions) | 4Q19 | 3Q19 | 2Q19 | 1Q19 | 4Q18 | |||||
Provision/ (credit) for loan loss | $(3.7) | $0.2 | $1.4 | $(1.4) | $0.1 | |||||
Total criticized and classified loans | 126.0 | 139.0 | 141.7 | 141.3 | 146.6 | |||||
Total nonaccrual loans | 16.1 | 17.6 | 17.2 | 12.0 | 14.1 | |||||
Total loans 30-89 days past due and accruing | 25.9 | 4.2 | 2.4 | 17.7 | 22.3 | |||||
Total net loans (charged-off)/ recovered | 0.3 | 0.1 | (0.1) | (0.1) | 1.7 | |||||
Ratios: | ||||||||||
Allowance for loan losses as a % of Total loans | 1.03% | 1.07% | 1.06% | 1.07% | 1.09% | |||||
Nonaccrual loans as a % of Total loans | 0.23% | 0.25% | 0.24% | 0.17% | 0.20% |
The Company recorded a provision credit of $3.7 million for the fourth quarter of 2019, compared to a provision expense of $0.2 million for the third quarter of 2019 and a provision expense of $0.1 million in the fourth quarter of 2018. The provision credit in the fourth quarter of 2019 was primarily driven by a decrease in criticized and classified loans and a decrease in loss factors.
Total criticized and classified loans as of December 31, 2019 was $126.0 million, a decline of 10% linked quarter and 14% year-over-year. Total nonaccrual loans as of December 31, 2019 was $16.1 million, or 23 basis points of Total loans, compared to $17.6 million, or 25 basis points of Total loans, as of September 30, 2019, and $14.1 million, or 20 basis points of Total loans, as of December 31, 2018.
Capital | ||||||||||
($ in millions, except for per share data) | 4Q19 | 3Q19 | 2Q19 | 1Q19 | 4Q18 | |||||
Tangible common equity/ Tangible assets (non-GAAP) | 8.6% | 8.6% | 8.4% | 8.3% | 8.1% | |||||
Tangible book value per share (non-GAAP) | $9.02 | $8.90 | $8.71 | $8.47 | $8.18 | |||||
Regulatory Capital Ratios: 7 | ||||||||||
Tier 1 common equity | 11.4% | 11.2% | 11.2% | 11.4% | 11.4% | |||||
Total risk-based capital | 14.1% | 13.9% | 13.9% | 14.2% | 14.3% | |||||
Tier 1 risk-based capital | 13.0% | 12.8% | 12.7% | 13.0% | 13.0% | |||||
Tier 1 leverage capital | 9.8% | 9.7% | 9.6% | 9.7% | 9.5% | |||||
Common Equity Repurchase Program: | ||||||||||
Total shares of common stock repurchased | — | 678,165 | — | — | 1,505,521 | |||||
Average price paid per share of common stock | — | $10.61 | — | — | $12.02 | |||||
Aggregate repurchases of common equity | — | $7.2 | — | — | $18.1 | |||||
7 Current quarter information is presented based on estimated data. | ||||||||||
The Company did not repurchase any common stock during the fourth quarter of 2019. The current program has $12.8 million remaining available to be repurchased.
Tangible book value per share (non-GAAP) as of December 31, 2019 increased 1% linked quarter and 10% year-over-year to $9.02. The linked quarter increase in Tangible book value per share was primarily driven by increased retained earnings, partially offset by dividends to shareholders.
Dividend Payments
Concurrent with the release of fourth 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 February 7, 2020, and the payment date is February 21, 2020.
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 Thursday, January 23, 2020, to discuss the financial results, business highlights and outlook. To access the call:
Dial In #: (888) 317-6003
Elite Entry Number: 8476896
Replay Information:
Available from January 23, 2020 at 12:00 p.m Eastern Time until January 30, 2020
Dial In #: (877) 344-7529
Conference Number: 10137972
The call will be simultaneously webcast and may be accessed on www.bostonprivate.com.
About Boston Private
Boston Private is a leading provider of integrated wealth management, trust and banking services to high-net-worth individuals, families, businesses and nonprofits.
For more than 30 years, Boston Private has delivered comprehensive advice coupled with deep technical expertise to help clients simplify their lives and achieve their goals. The firm offers the capabilities of a large institution with the superior service of a boutique firm to clients across the United States. The Company has total assets of greater than $8 billion, and manages over $16 billion of client assets.
Boston Private is the corporate brand of Boston Private Financial Holdings, Inc. (NASDAQ: BPFH).
For more information, visit 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 Sheets | |||||||||||||||||||
Unaudited ($ in thousands, except share and per share data) | |||||||||||||||||||
4Q19 | 3Q19 | 2Q19 | 1Q19 | 4Q18 | |||||||||||||||
ASSETS: | |||||||||||||||||||
Cash and cash equivalents | $ | 292,479 | $ | 78,010 | $ | 65,756 | $ | 96,211 | $ | 127,259 | |||||||||
Investment securities available-for-sale | 978,284 | 935,538 | 966,731 | 981,951 | 994,065 | ||||||||||||||
Investment securities held-to-maturity | 48,212 | 51,379 | 54,482 | 67,548 | 70,438 | ||||||||||||||
Equity securities at fair value | 18,810 | 21,780 | 19,092 | 7,491 | 14,228 | ||||||||||||||
Stock in Federal Home Loan Bank and Federal Reserve Bank | 39,078 | 47,756 | 64,453 | 47,053 | 49,263 | ||||||||||||||
Loans held for sale | 7,386 | 6,658 | 3,640 | 280 | 2,812 | ||||||||||||||
Loans | 6,976,704 | 7,067,151 | 7,080,260 | 6,926,968 | 6,893,158 | ||||||||||||||
Less: Allowance for loan losses | 71,982 | 75,359 | 75,067 | 73,814 | 75,312 | ||||||||||||||
Loans, net of allowance for loan losses | 6,904,722 | 6,991,792 | 7,005,193 | 6,853,154 | 6,817,846 | ||||||||||||||
Other real estate owned (“OREO”) | — | — | — | — | 401 | ||||||||||||||
Premises and equipment, net | 44,527 | 42,658 | 40,244 | 42,938 | 45,412 | ||||||||||||||
Goodwill | 57,607 | 57,607 | 57,607 | 57,607 | 57,607 | ||||||||||||||
Intangible assets, net | 10,352 | 10,622 | 10,884 | 11,555 | 12,227 | ||||||||||||||
Accrued interest receivable | 24,175 | 24,851 | 26,411 | 25,935 | 24,366 | ||||||||||||||
Deferred income taxes, net | 11,383 | 15,704 | 17,183 | 22,844 | 26,638 | ||||||||||||||
Right-of-use assets | 102,075 | 107,045 | 110,880 | 104,644 | — | ||||||||||||||
Other assets | 291,411 | 299,544 | 270,317 | 252,932 | 252,063 | ||||||||||||||
TOTAL ASSETS | $ | 8,830,501 | $ | 8,690,944 | $ | 8,712,873 | $ | 8,572,143 | $ | 8,494,625 | |||||||||
LIABILITIES: | |||||||||||||||||||
Deposits | $ | 7,241,476 | $ | 6,658,242 | $ | 6,437,963 | $ | 6,779,845 | $ | 6,781,170 | |||||||||
Securities sold under agreements to repurchase | 53,398 | 48,860 | 62,372 | 58,329 | 36,928 | ||||||||||||||
Federal funds purchased | — | 230,000 | 135,000 | — | 250,000 | ||||||||||||||
Federal Home Loan Bank borrowings | 350,829 | 570,904 | 920,068 | 615,070 | 420,144 | ||||||||||||||
Junior subordinated debentures | 106,363 | 106,363 | 106,363 | 106,363 | 106,363 | ||||||||||||||
Lease liabilities | 117,214 | 122,799 | 126,740 | 120,162 | — | ||||||||||||||
Other liabilities | 140,820 | 143,607 | 124,370 | 112,893 | 143,540 | ||||||||||||||
TOTAL LIABILITIES | 8,010,100 | 7,880,775 | 7,912,876 | 7,792,662 | 7,738,145 | ||||||||||||||
REDEEMABLE NONCONTROLLING INTERESTS (“RNCI”) | 1,383 | 1,481 | 1,786 | 662 | 2,526 | ||||||||||||||
SHAREHOLDERS' EQUITY: | |||||||||||||||||||
Common stock, $1.00 par value; authorized: 170,000,000 shares | 83,266 | 83,242 | 83,774 | 83,774 | 83,656 | ||||||||||||||
Additional paid-in capital | 600,708 | 599,877 | 603,869 | 604,288 | 600,196 | ||||||||||||||
Retained earnings | 127,469 | 116,210 | 106,443 | 97,155 | 87,821 | ||||||||||||||
Accumulated other comprehensive income/(loss) | 7,575 | 9,359 | 4,125 | (6,398) | (17,719) | ||||||||||||||
TOTAL SHAREHOLDERS' EQUITY | 819,018 | 808,688 | 798,211 | 778,819 | 753,954 | ||||||||||||||
TOTAL LIABILITIES, RNCI, AND SHAREHOLDERS' EQUITY | $ | 8,830,501 | $ | 8,690,944 | $ | 8,712,873 | $ | 8,572,143 | $ | 8,494,625 | |||||||||
BOSTON PRIVATE FINANCIAL HOLDINGS, INC. | |||||||||||||||||||
Consolidated Income Statements | |||||||||||||||||||
Unaudited ($ in thousands, except share and per share data) | |||||||||||||||||||
4Q19 | 3Q19 | 2Q19 | 1Q19 | 4Q18 | |||||||||||||||
REVENUE: | |||||||||||||||||||
Interest income | $ | 75,291 | $ | 77,604 | $ | 78,728 | $ | 76,824 | $ | 76,892 | |||||||||
Interest expense | 19,166 | 21,451 | 21,268 | 18,486 | 16,895 | ||||||||||||||
Net interest income | 56,125 | 56,153 | 57,460 | 58,338 | 59,997 | ||||||||||||||
Provision/(credit) for loan losses | (3,668) | 167 | 1,363 | (1,426) | 93 | ||||||||||||||
Net interest income after provision/(credit) for loan losses | 59,793 | 55,986 | 56,097 | 59,764 | 59,904 | ||||||||||||||
Wealth management and trust fees 8 | 18,720 | 19,067 | 18,912 | 19,058 | 23,788 | ||||||||||||||
Investment management fees | 2,554 | 2,496 | 2,455 | 2,650 | 2,831 | ||||||||||||||
Private banking fee income | 2,924 | 2,658 | 2,867 | 2,499 | 2,033 | ||||||||||||||
Gain on sale of loans, net | 557 | 934 | 58 | 73 | 39 | ||||||||||||||
Total core fees and income | 24,755 | 25,155 | 24,292 | 24,280 | 28,691 | ||||||||||||||
Total other income | 2,038 | (29) | 88 | 968 | 17,154 | ||||||||||||||
TOTAL REVENUE 9 | 82,918 | 81,279 | 81,840 | 83,586 | 105,842 | ||||||||||||||
NONINTEREST EXPENSE: | |||||||||||||||||||
Salaries and employee benefits | 34,186 | 31,684 | 32,706 | 35,726 | 36,007 | ||||||||||||||
Occupancy and equipment | 7,578 | 8,260 | 7,852 | 8,348 | 7,975 | ||||||||||||||
Information systems | 6,476 | 5,169 | 5,137 | 5,860 | 6,296 | ||||||||||||||
Professional services | 3,920 | 4,435 | 3,313 | 3,560 | 4,229 | ||||||||||||||
Marketing and business development | 2,017 | 1,403 | 1,934 | 1,085 | 2,275 | ||||||||||||||
Amortization of intangibles | 676 | 671 | 672 | 672 | 680 | ||||||||||||||
FDIC insurance | (19) | 59 | 585 | 660 | 739 | ||||||||||||||
Restructuring | — | — | — | 1,646 | 2,065 | ||||||||||||||
Other | 3,623 | 3,856 | 3,460 | 2,996 | 3,291 | ||||||||||||||
TOTAL NONINTEREST EXPENSE | 58,457 | 55,537 | 55,659 | 60,553 | 63,557 | ||||||||||||||
INCOME BEFORE INCOME TAXES | 28,129 | 25,575 | 24,818 | 24,459 | 42,192 | ||||||||||||||
Provision for income taxes | 6,788 | 5,517 | 5,369 | 4,917 | 8,651 | ||||||||||||||
Net income from continuing operations | 21,341 | 20,058 | 19,449 | 19,542 | 33,541 | ||||||||||||||
Net income from discontinued operations 10 | — | — | — | — | 306 | ||||||||||||||
Net income before attribution to noncontrolling interests | 21,341 | 20,058 | 19,449 | 19,542 | 33,847 | ||||||||||||||
Less: Net income attributable to noncontrolling interests | 97 | 96 | 69 | 100 | 545 | ||||||||||||||
NET INCOME ATTRIBUTABLE TO THE COMPANY | $ | 21,244 | $ | 19,962 | $ | 19,380 | $ | 19,442 | $ | 33,302 | |||||||||
Adjustments, treasury stock method 11 | 98 | 304 | (816) | 1,557 | 2,694 | ||||||||||||||
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ | 21,342 | $ | 20,266 | $ | 18,564 | $ | 20,999 | $ | 35,996 | |||||||||
COMMON SHARE DATA: | |||||||||||||||||||
Weighted average basic shares outstanding | 83,238,982 | 83,631,403 | 83,565,780 | 83,285,095 | 83,750,785 | ||||||||||||||
Weighted average diluted shares outstanding 12 | 83,637,786 | 83,956,708 | 84,048,972 | 84,010,450 | 84,863,779 | ||||||||||||||
Diluted total earnings per share | $ | 0.26 | $ | 0.24 | $ | 0.22 | $ | 0.25 | $ | 0.42 | |||||||||
8 Wealth management and trust fees consists of revenue from Boston Private Wealth LLC ("BPW"), KLS Professional Advisors Group, LLC ("KLS") through the effective date of its merger with BPW, BOS (through the closing date), 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 Statements | ||||||||
Unaudited ($ in thousands, except share and per share data) | ||||||||
Year ended December 31, | ||||||||
2019 | 2018 | |||||||
REVENUE: | ||||||||
Interest income | $ | 308,447 | $ | 292,904 | ||||
Interest expense | 80,371 | 58,338 | ||||||
Net interest income | 228,076 | 234,566 | ||||||
Provision/(credit) for loan losses | (3,564) | (2,198) | ||||||
Net interest income after provision/(credit) for loan losses | 231,640 | 236,764 | ||||||
Wealth management and trust fees 8 | 75,757 | 99,818 | ||||||
Investment management fees 13 | 10,155 | 21,728 | ||||||
Private banking fee income | 10,948 | 9,826 | ||||||
Gain on sale of loans, net | 1,622 | 243 | ||||||
Total core fees and income | 98,482 | 131,615 | ||||||
Total other income | 3,065 | 18,382 | ||||||
TOTAL REVENUE 9 | 329,623 | 384,563 | ||||||
NONINTEREST EXPENSE: | ||||||||
Salaries and employee benefits | 134,302 | 161,468 | ||||||
Occupancy and equipment | 32,038 | 32,116 | ||||||
Information systems | 22,642 | 25,185 | ||||||
Professional services | 15,228 | 13,155 | ||||||
Marketing and business development | 6,439 | 7,648 | ||||||
Amortization of intangibles | 2,691 | 2,929 | ||||||
FDIC insurance 9 | 1,285 | 2,865 | ||||||
Restructuring | 1,646 | 7,828 | ||||||
Other | 13,935 | 14,161 | ||||||
TOTAL NONINTEREST EXPENSE | 230,206 | 267,355 | ||||||
INCOME BEFORE INCOME TAXES | 102,981 | 119,406 | ||||||
Income tax expense | 22,591 | 37,537 | ||||||
Net income from continuing operations | 80,390 | 81,869 | ||||||
Net income from discontinued operations 10 | — | 2,002 | ||||||
Net income before attribution to noncontrolling interests | 80,390 | 83,871 | ||||||
Less: Net income attributable to noncontrolling interests | 362 | 3,487 | ||||||
NET INCOME ATTRIBUTABLE TO THE COMPANY | $ | 80,028 | $ | 80,384 | ||||
Adjustments, treasury stock method 11 | 1,143 | (1,682) | ||||||
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ | 81,171 | $ | 78,702 | ||||
COMMON SHARE DATA | ||||||||
Weighted average basic shares outstanding | 83,430,740 | 83,596,685 | ||||||
Weighted average diluted shares outstanding 12 | 83,920,792 | 85,331,314 | ||||||
Diluted total earnings per share | $ | 0.97 | $ | 0.92 | ||||
8 Wealth management and trust fees consists of revenue from BPW, KLS (through the effective date of its merger with BPW), Anchor Capital Advisors, LLC ("Anchor") and BOS (through the respective closing dates), 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 $50 million of the outstanding Series D preferred stock. 12 For a description of the Company's policies regarding Diluted earnings per share, please refer to Part II. Item 8. “Financial Statements and Supplementary Data - Note 16: Earnings Per Share” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. 13 Investment management fees consists of revenue from DGHM and Anchor (through the closing date). | ||||||||
BOSTON PRIVATE FINANCIAL HOLDINGS, INC. | ||||||||||||||
Consolidated Financial Highlights | ||||||||||||||
Unaudited ($ in thousands, except share and per share data) | ||||||||||||||
4Q19 | 3Q19 | 2Q19 | 1Q19 | 4Q18 | ||||||||||
KEY STATISTICS: | ||||||||||||||
Return on average assets (non-GAAP) 14 | 0.96 % | 0.91% | 0.90% | 0.93 % | 1.56 % | |||||||||
ROACE (non-GAAP) 14 | 10.29 % | 9.80% | 9.83% | 10.29 % | 17.87 % | |||||||||
ROATCE (non-GAAP) 14 | 11.51 % | 10.99% | 11.06% | 11.63 % | 20.46 % | |||||||||
Efficiency ratio (non-GAAP) 14 | 69.7 % | 67.5% | 67.2% | 69.7 % | 57.1 % | |||||||||
Noninterest income to total revenue | 32.3 % | 30.9 % | 29.8 % | 30.2 % | 43.3 % | |||||||||
Net interest margin | 2.70 % | 2.72 % | 2.78 % | 2.90 % | 2.94 % | |||||||||
Average loan to average deposit ratio | 101.6 % | 105.9 % | 106.6 % | 101.6 % | 98.0 % | |||||||||
Cost of total deposits | 0.86 % | 0.92 % | 0.88 % | 0.84 % | 0.77 % | |||||||||
Cost of interest-bearing deposits | 1.20 % | 1.31 % | 1.25 % | 1.19 % | 1.11 % | |||||||||
Cost of total funding | 0.99 % | 1.12 % | 1.11 % | 1.00 % | 0.89 % | |||||||||
Allowance for Loan Loss / Total Loans | 1.03 % | 1.07 % | 1.06 % | 1.07 % | 1.09 % | |||||||||
Nonperforming loans / Total Loans | 0.23 % | 0.25 % | 0.24 % | 0.17 % | 0.20 % | |||||||||
Net (charge-offs)/recoveries / Total loans 14 | 0.02 % | 0.01 % | (0.01) % | — % | 0.10 % | |||||||||
CAPITAL HIGHLIGHTS: | ||||||||||||||
Tier 1 common equity 15 | $ | 745,887 | $ | 732,980 | $ | 726,872 | $ | 717,138 | $ | 702,728 | ||||
Tier 1 capital 15 | $ | 846,298 | $ | 833,431 | $ | 827,299 | $ | 817,600 | $ | 803,311 | ||||
Total capital 15 | $ | 919,534 | $ | 910,076 | $ | 903,675 | $ | 892,764 | $ | 879,927 | ||||
Risk-weighted assets ("RWA") 15 | $ | 6,529,626 | $ | 6,533,884 | $ | 6,491,184 | $ | 6,304,444 | $ | 6,161,677 | ||||
Average assets for leverage 15 | $ | 8,654,576 | $ | 8,588,358 | $ | 8,617,803 | $ | 8,447,143 | $ | 8,416,195 | ||||
Tier 1 common equity ratio 15 | 11.42 % | 11.22 % | 11.20 % | 11.38 % | 11.40 % | |||||||||
Tier 1 risk-based capital ratio 15 | 12.96 % | 12.76 % | 12.74 % | 12.97 % | 13.04 % | |||||||||
Total risk-based capital ratio 15 | 14.08 % | 13.93 % | 13.92 % | 14.16 % | 14.28 % | |||||||||
Tier 1 leverage capital ratio 15 | 9.77 % | 9.70 % | 9.60 % | 9.68 % | 9.54 % | |||||||||
Total equity / Total assets | 9.27 % | 9.30 % | 9.16 % | 9.09 % | 8.88 % | |||||||||
Tangible common equity / Tangible assets (non-GAAP) | 8.57 % | 8.59 % | 8.44 % | 8.35 % | 8.12 % | |||||||||
Market price per share | $ | 12.03 | $ | 11.66 | $ | 12.07 | $ | 10.96 | $ | 10.57 | ||||
End of period shares outstanding | 83,265,674 | 83,241,952 | 83,774,335 | 83,773,650 | 83,655,651 | |||||||||
Book value per common share | $ | 9.84 | $ | 9.71 | $ | 9.53 | $ | 9.30 | $ | 9.01 | ||||
Tangible book value per share (non-GAAP) | $ | 9.02 | $ | 8.90 | $ | 8.71 | $ | 8.47 | $ | 8.18 | ||||
Common Equity Repurchase Program: | ||||||||||||||
Total shares of common stock repurchased | — | 678,165 | — | — | 1,505,521 | |||||||||
Average price paid per share of common stock | $ | — | $ | 10.61 | $ | — | $ | — | $ | 12.02 | ||||
Aggregate repurchases of common equity ($ in millions) | $ | — | $ | 7.2 | $ | — | $ | — | $ | 18.1 | ||||
14 Annualized. 15 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) | |||||||||||||||||||
4Q19 | 3Q19 | 2Q19 | 1Q19 | 4Q18 | |||||||||||||||
ASSETS UNDER MANAGEMENT AND ADVISORY ("AUM"): | |||||||||||||||||||
Wealth Management and Trust | $ | 15,224,000 | $ | 14,695,000 | $ | 14,649,000 | $ | 14,564,000 | $ | 14,206,000 | |||||||||
Other | 1,544,000 | 1,533,000 | 1,550,000 | 1,558,000 | 1,715,000 | ||||||||||||||
Total AUM | 16,768,000 | 16,228,000 | 16,199,000 | 16,122,000 | 15,921,000 | ||||||||||||||
AUM Rollforward: | |||||||||||||||||||
Beginning balance 16 | $ | 16,228,000 | $ | 16,199,000 | $ | 16,122,000 | $ | 15,921,000 | $ | 17,723,000 | |||||||||
Net flows | (209,000) | (137,000) | (269,000) | (963,000) | (143,000) | ||||||||||||||
Market | 749,000 | 166,000 | 346,000 | 1,164,000 | (1,659,000) | ||||||||||||||
Ending balance | $ | 16,768,000 | $ | 16,228,000 | $ | 16,199,000 | $ | 16,122,000 | $ | 15,921,000 | |||||||||
AUM Net Flows: | |||||||||||||||||||
Wealth Management and Trust | $ | (114,000) | $ | (100,000) | $ | (233,000) | $ | (580,000) | $ | (137,000) | |||||||||
Other | (95,000) | (37,000) | (36,000) | (383,000) | (6,000) | ||||||||||||||
Total Net flows | $ | (209,000) | $ | (137,000) | $ | (269,000) | $ | (963,000) | $ | (143,000) | |||||||||
DEPOSITS: | |||||||||||||||||||
Demand deposits (non-interest bearing) | $ | 1,971,013 | $ | 1,947,363 | $ | 1,854,091 | $ | 2,016,838 | $ | 1,951,274 | |||||||||
Savings and NOW | 646,199 | 666,107 | 631,166 | 673,954 | 700,519 | ||||||||||||||
Money market | 3,969,330 | 3,366,623 | 3,228,608 | 3,302,244 | 3,338,892 | ||||||||||||||
Certificates of deposit | 654,934 | 678,149 | 724,098 | 786,809 | 790,485 | ||||||||||||||
TOTAL DEPOSITS | $ | 7,241,476 | $ | 6,658,242 | $ | 6,437,963 | $ | 6,779,845 | $ | 6,781,170 | |||||||||
LOANS: | |||||||||||||||||||
Commercial and industrial | $ | 694,034 | $ | 695,029 | $ | 656,186 | $ | 615,370 | $ | 623,037 | |||||||||
Commercial tax exempt | 447,927 | 448,488 | 450,307 | 449,492 | 451,671 | ||||||||||||||
Commercial real estate | 2,551,274 | 2,533,346 | 2,530,556 | 2,439,048 | 2,395,692 | ||||||||||||||
Construction and land | 225,983 | 209,741 | 200,378 | 210,618 | 240,306 | ||||||||||||||
Residential | 2,839,155 | 2,964,042 | 3,025,758 | 2,993,132 | 2,948,973 | ||||||||||||||
Home equity | 83,657 | 84,432 | 89,930 | 88,620 | 90,421 | ||||||||||||||
Consumer | 134,674 | 132,073 | 127,145 | 130,688 | 143,058 | ||||||||||||||
TOTAL LOANS | $ | 6,976,704 | $ | 7,067,151 | $ | 7,080,260 | $ | 6,926,968 | $ | 6,893,158 | |||||||||
16 AUM have been reduced to exclude those assets managed or advised by BOS for period when BOS was owned by the Company | |||||||||||||||||||
BOSTON PRIVATE FINANCIAL HOLDINGS, INC. | ||||||||||||||
Asset Quality | ||||||||||||||
Unaudited ($ in thousands) | ||||||||||||||
4Q19 | 3Q19 | 2Q19 | 1Q19 | 4Q18 | ||||||||||
CHARGE-OFFS: | ||||||||||||||
Loan charge-offs | $ | (285) | $ | (185) | $ | (195) | $ | (564) | $ | (370) | ||||
Loan recoveries | 576 | 310 | 85 | 492 | 2,089 | |||||||||
NET (CHARGE-OFFS)/RECOVERIES | $ | 291 | $ | 125 | $ | (110) | $ | (72) | $ | 1,719 | ||||
Net charge-offs to average loans (annualized) | 0.02 % | 0.01% | (0.01)% | —% | 0.10% | |||||||||
Net (Charge-offs)/Recoveries by Loan Type: | ||||||||||||||
Commercial and industrial | $ | 118 | $ | 95 | $ | (155) | $ | 188 | $ | (77) | ||||
Commercial real estate | 183 | 27 | 30 | 189 | 1,394 | |||||||||
Construction and land | — | — | — | — | — | |||||||||
Residential | — | — | — | 100 | 402 | |||||||||
Home equity | 4 | 6 | — | (562) | — | |||||||||
Consumer | (14) | (3) | 15 | 13 | — | |||||||||
NET (CHARGE-OFFS)/ RECOVERIES | $ | 291 | $ | 125 | $ | (110) | $ | (72) | $ | 1,719 | ||||
LOAN QUALITY DATA: | ||||||||||||||
Special mention loans | $ | 52,026 | $ | 58,133 | $ | 70,677 | $ | 86,787 | $ | 78,528 | ||||
Accruing classified loans 17 | 57,922 | 63,278 | 53,883 | 42,521 | 54,095 | |||||||||
Nonaccrual loans | 16,103 | 17,565 | 17,155 | 12,019 | 14,057 | |||||||||
Total classified | 74,025 | 80,843 | 71,038 | 54,540 | 68,152 | |||||||||
Criticized and classified loans | $ | 126,051 | $ | 138,976 | $ | 141,715 | $ | 141,327 | $ | 146,680 | ||||
Loans 30-89 days past due and accruing 18 | $ | 25,945 | $ | 4,179 | $ | 2,434 | $ | 17,715 | $ | 22,299 | ||||
17 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. 18 At June 30, 2019, the Company had one loan totaling $0.9 million that was more than 90 days past due but still on accrual status. This loan originated in the New England region. The Company had no other loans outstanding more than 90 days past due but still on accrual status in comparative periods. | ||||||||||||||
BOSTON PRIVATE FINANCIAL HOLDINGS, INC. | ||||||||||||||||||||||||||
Average Balances, Yields, and Rates | ||||||||||||||||||||||||||
Unaudited ($ in thousands) | ||||||||||||||||||||||||||
Average Balance | Interest Income/Expense | Average Yield/Rate | ||||||||||||||||||||||||
4Q19 | 3Q19 | 4Q18 | 4Q19 | 3Q19 | 4Q18 | 4Q19 | 3Q19 | 4Q18 | ||||||||||||||||||
INTEREST-EARNING ASSETS | ||||||||||||||||||||||||||
Cash and investments: | ||||||||||||||||||||||||||
Taxable investment securities | $ | 201,535 | $ | 198,655 | $ | 317,230 | $ | 869 | $ | 938 | $ | 1,486 | 1.72 | % | 1.95 | % | 1.87 | % | ||||||||
Non-taxable investment securities | 311,705 | 305,108 | 301,242 | 1,976 | 1,924 | 1,833 | 2.54 | % | 2.52 | % | 2.43 | % | ||||||||||||||
Mortgage-backed securities | 489,927 | 492,514 | 536,264 | 2,568 | 2,622 | 2,923 | 2.10 | % | 2.13 | % | 2.18 | % | ||||||||||||||
Short-term investments and other | 130,519 | 101,958 | 134,182 | 1,210 | 1,084 | 1,356 | 3.65 | % | 4.06 | % | 3.98 | % | ||||||||||||||
Total cash and investments | 1,133,686 | 1,098,235 | 1,288,918 | 6,623 | 6,568 | 7,598 | 2.33 | % | 2.39 | % | 2.35 | % | ||||||||||||||
Loans: 19 | ||||||||||||||||||||||||||
Commercial and industrial | 1,142,015 | 1,101,672 | 1,027,128 | 11,276 | 11,523 | 10,431 | 3.86 | % | 4.09 | % | 3.97 | % | ||||||||||||||
Commercial real estate | 2,562,380 | 2,518,048 | 2,402,304 | 28,285 | 29,118 | 29,017 | 4.32 | % | 4.52 | % | 4.73 | % | ||||||||||||||
Construction and land | 216,754 | 195,843 | 209,475 | 2,588 | 2,410 | 2,589 | 4.67 | % | 4.82 | % | 4.83 | % | ||||||||||||||
Residential | 2,934,786 | 3,016,265 | 2,907,446 | 24,275 | 25,567 | 24,629 | 3.31 | % | 3.39 | % | 3.39 | % | ||||||||||||||
Home equity | 84,632 | 89,068 | 93,656 | 965 | 1,121 | 1,148 | 4.53 | % | 4.99 | % | 4.86 | % | ||||||||||||||
Other consumer | 132,143 | 127,987 | 140,591 | 1,279 | 1,297 | 1,480 | 3.84 | % | 4.02 | % | 4.18 | % | ||||||||||||||
Total loans | 7,072,710 | 7,048,883 | 6,780,600 | 68,668 | 71,036 | 69,294 | 3.83 | % | 3.98 | % | 4.03 | % | ||||||||||||||
Total earning assets | 8,206,396 | 8,147,118 | 8,069,518 | 75,291 | 77,604 | 76,892 | 3.62 | % | 3.76 | % | 3.76 | % | ||||||||||||||
LESS: Allowance for loan losses | 75,283 | 75,199 | 75,006 | |||||||||||||||||||||||
Cash and due from banks | 48,287 | 49,065 | 53,633 | |||||||||||||||||||||||
Other assets | 559,350 | 544,368 | 397,153 | |||||||||||||||||||||||
TOTAL AVERAGE ASSETS | $ | 8,738,750 | $ | 8,665,352 | $ | 8,445,298 | ||||||||||||||||||||
INTEREST-BEARING LIABILITIES | ||||||||||||||||||||||||||
Interest-bearing deposits: 20 | ||||||||||||||||||||||||||
Savings and NOW | $ | 644,502 | $ | 615,730 | $ | 649,937 | $ | 252 | $ | 275 | $ | 377 | 0.16 | % | 0.18 | % | 0.23 | % | ||||||||
Money market | 3,632,258 | 3,378,006 | 3,392,039 | 11,449 | 11,523 | 9,502 | 1.25 | % | 1.35 | % | 1.11 | % | ||||||||||||||
Certificates of deposit | 680,466 | 711,299 | 784,184 | 3,322 | 3,689 | 3,591 | 1.94 | % | 2.06 | % | 1.82 | % | ||||||||||||||
Total interest-bearing deposits 20 | 4,957,226 | 4,705,035 | 4,826,160 | 15,023 | 15,487 | 13,470 | 1.20 | % | 1.31 | % | 1.11 | % | ||||||||||||||
Junior subordinated debentures | 106,363 | 106,363 | 106,363 | 966 | 1,022 | 1,043 | 3.56 | % | 3.76 | % | 3.84 | % | ||||||||||||||
FHLB borrowings and other | 591,682 | 833,535 | 515,734 | 3,177 | 4,942 | 2,382 | 2.10 | % | 2.32 | % | 1.81 | % | ||||||||||||||
Total interest-bearing liabilities 20 | 5,655,271 | 5,644,933 | 5,448,257 | 19,166 | 21,451 | 16,895 | 1.34 | % | 1.50 | % | 1.23 | % | ||||||||||||||
Non-interest bearing demand deposits 20 | 2,001,714 | 1,953,214 | 2,092,070 | |||||||||||||||||||||||
Payables and other liabilities | 261,503 | 258,371 | 154,612 | |||||||||||||||||||||||
Total average liabilities | 7,918,488 | 7,856,518 | 7,694,939 | |||||||||||||||||||||||
Redeemable noncontrolling interests | 1,446 | 944 | 11,046 | |||||||||||||||||||||||
Average shareholders’ equity | 818,816 | 807,890 | 739,313 | |||||||||||||||||||||||
TOTAL AVERAGE LIABILITIES, RNCI, AND SHAREHOLDERS’ EQUITY | $ | 8,738,750 | $ | 8,665,352 | $ | 8,445,298 | ||||||||||||||||||||
Net interest income | $ | 56,125 | $ | 56,153 | $ | 59,997 | ||||||||||||||||||||
Interest rate spread | 2.28 | % | 2.26 | % | 2.53 | % | ||||||||||||||||||||
Net interest margin | 2.70 | % | 2.72 | % | 2.94 | % | ||||||||||||||||||||
Average total deposits 20 | $ | 6,958,940 | $ | 6,658,249 | $ | 6,918,230 | 0.86 | % | 0.92 | % | 0.77 | % | ||||||||||||||
Average total deposits and borrowings 20 | $ | 7,656,985 | $ | 7,598,147 | $ | 7,540,327 | 0.99 | % | 1.12 | % | 0.89 | % | ||||||||||||||
19 Average loans includes Loans held for sale and Nonaccrual loans 20 Average total deposits is the sum of Average total interest-bearing deposits and Average non-interest bearing demand deposits. Average total deposits and borrowings is the sum of Average total interest-bearing liabilities and Average non-interest bearing demand deposits. | ||||||||||||||||||||||||||
BOSTON PRIVATE FINANCIAL HOLDINGS, INC. | ||||||||||||||||||
Average Balances, Yields, and Rates | ||||||||||||||||||
Unaudited ($ in thousands) | ||||||||||||||||||
Average Balance | Interest Income/Expense | Average Yield/Rate | ||||||||||||||||
Year Ended | Year Ended | Year Ended | ||||||||||||||||
INTEREST-EARNING ASSETS | 12/31/19 | 12/31/18 | 12/31/19 | 12/31/18 | 12/31/19 | 12/31/18 | ||||||||||||
Cash and investments: | ||||||||||||||||||
Taxable investment securities | $ | 217,653 | $ | 325,159 | $ | 4,113 | $ | 6,007 | 1.89 | % | 1.85 | % | ||||||
Non-taxable investment securities | 307,005 | 298,450 | 7,702 | 7,094 | 2.51 | % | 2.38 | % | ||||||||||
Mortgage-backed securities | 502,949 | 561,929 | 10,793 | 12,091 | 2.15 | % | 2.15 | % | ||||||||||
Short-term investments and other | 110,877 | 164,712 | 4,259 | 5,187 | 3.84 | % | 3.15 | % | ||||||||||
Total cash and investments | 1,138,484 | 1,350,250 | 26,867 | 30,379 | 2.36 | % | 2.25 | % | ||||||||||
Loans: 19 | ||||||||||||||||||
Commercial and industrial | 1,101,635 | 983,699 | 44,949 | 37,985 | 4.08 | % | 3.86 | % | ||||||||||
Commercial real estate | 2,496,878 | 2,449,039 | 115,507 | 112,037 | 4.63 | % | 4.57 | % | ||||||||||
Construction and land | 206,624 | 181,315 | 10,198 | 8,731 | 4.94 | % | 4.82 | % | ||||||||||
Residential | 2,983,173 | 2,806,046 | 101,122 | 92,892 | 3.39 | % | 3.31 | % | ||||||||||
Home equity | 88,917 | 94,823 | 4,353 | 4,320 | 4.90 | % | 4.56 | % | ||||||||||
Other consumer | 129,701 | 167,139 | 5,451 | 6,560 | 4.20 | % | 3.92 | % | ||||||||||
Total loans | 7,006,928 | 6,682,061 | 281,580 | 262,525 | 4.02 | % | 3.93 | % | ||||||||||
Total earning assets | 8,145,412 | 8,032,311 | 308,447 | 292,904 | 3.79 | % | 3.65 | % | ||||||||||
LESS: Allowance for loan losses | 74,969 | 74,174 | ||||||||||||||||
Cash and due from banks | 47,286 | 49,282 | ||||||||||||||||
Other assets | 527,269 | 402,821 | ||||||||||||||||
TOTAL AVERAGE ASSETS | $ | 8,644,998 | $ | 8,410,240 | ||||||||||||||
INTEREST-BEARING LIABILITIES | ||||||||||||||||||
Interest-bearing deposits: 20 | ||||||||||||||||||
Savings and NOW | $ | 654,712 | $ | 694,674 | $ | 1,099 | $ | 1,197 | 0.17 | % | 0.17 | % | ||||||
Money market | 3,395,842 | 3,202,616 | 43,521 | 27,469 | 1.28 | % | 0.86 | % | ||||||||||
Certificates of deposit | 730,693 | 714,827 | 14,463 | 11,180 | 1.98 | % | 1.56 | % | ||||||||||
Total interest-bearing deposits 20 | 4,781,247 | 4,612,117 | 59,083 | 39,846 | 1.24 | % | 0.86 | % | ||||||||||
Junior subordinated debentures | 106,363 | 106,363 | 4,189 | 3,925 | 3.94 | % | 3.69 | % | ||||||||||
FHLB borrowings and other | 748,628 | 795,050 | 17,099 | 14,567 | 2.28 | % | 1.83 | % | ||||||||||
Total interest-bearing liabilities 20 | 5,636,238 | 5,513,530 | 80,371 | 58,338 | 1.43 | % | 1.06 | % | ||||||||||
Non-interest bearing demand deposits 20 | 1,962,951 | 1,984,660 | ||||||||||||||||
Payables and other liabilities | 247,163 | 137,323 | ||||||||||||||||
Total average liabilities | 7,846,352 | 7,635,513 | ||||||||||||||||
Redeemable noncontrolling interests | 1,593 | 14,859 | ||||||||||||||||
Average shareholders’ equity | 797,053 | 759,868 | ||||||||||||||||
TOTAL AVERAGE LIABILITIES, RNCI, AND SHAREHOLDERS’ EQUITY | $ | 8,644,998 | $ | 8,410,240 | ||||||||||||||
Net interest income | $ | 228,076 | $ | 234,566 | ||||||||||||||
Interest rate spread | 2.36 | % | 2.59 | % | ||||||||||||||
Net interest margin | 2.80 | % | 2.92 | % | ||||||||||||||
Average total deposits 20 | $ | 6,744,198 | $ | 6,596,777 | 0.88 | % | 0.60 | % | ||||||||||
Average total deposits and borrowings 20 | $ | 7,599,189 | $ | 7,498,190 | 1.06 | % | 0.78 | % | ||||||||||
19 Average loans includes Loans held for sale and Nonaccrual loans 20 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) | |||||||||||||||||||
4Q19 | 3Q19 | 2Q19 | 1Q19 | 4Q18 | |||||||||||||||
New England | $ | 3,776,747 | $ | 3,868,690 | $ | 3,957,221 | $ | 3,901,644 | $ | 3,890,607 | |||||||||
Northern California | 1,532,786 | 1,559,569 | 1,538,441 | 1,499,626 | 1,488,017 | ||||||||||||||
Southern California | 1,667,171 | 1,638,892 | 1,584,598 | 1,525,698 | 1,514,534 | ||||||||||||||
Total loans | $ | 6,976,704 | $ | 7,067,151 | $ | 7,080,260 | $ | 6,926,968 | $ | 6,893,158 | |||||||||
Loans (charged-off)/recovered, net: | |||||||||||||||||||
New England | $ | 414 | $ | 275 | $ | 31 | $ | 222 | $ | (100) | |||||||||
Northern California | (10) | 6 | 20 | 18 | 1,804 | ||||||||||||||
Southern California | (113) | (156) | (161) | (312) | 15 | ||||||||||||||
Total net loans (charged-off)/recovered | $ | 291 | $ | 125 | $ | (110) | $ | (72) | $ | 1,719 | |||||||||
Special mention loans: | |||||||||||||||||||
New England | $ | 21,691 | $ | 19,828 | $ | 35,235 | $ | 34,675 | $ | 31,147 | |||||||||
Northern California | 5,227 | 4,821 | 10,360 | 23,486 | 18,585 | ||||||||||||||
Southern California | 25,108 | 33,484 | 25,082 | 28,626 | 28,796 | ||||||||||||||
Total special mention loans | $ | 52,026 | $ | 58,133 | $ | 70,677 | $ | 86,787 | $ | 78,528 | |||||||||
Accruing classified loans: | |||||||||||||||||||
New England | $ | 20,428 | $ | 21,830 | $ | 13,012 | $ | 15,830 | $ | 10,392 | |||||||||
Northern California | 24,946 | 23,938 | 25,957 | 20,801 | 24,584 | ||||||||||||||
Southern California | 12,548 | 17,510 | 14,914 | 5,890 | 19,119 | ||||||||||||||
Total accruing classified loans | $ | 57,922 | $ | 63,278 | $ | 53,883 | $ | 42,521 | $ | 54,095 | |||||||||
Nonaccruing loans: | |||||||||||||||||||
New England | $ | 9,764 | $ | 8,999 | $ | 8,837 | $ | 6,161 | $ | 6,728 | |||||||||
Northern California | 319 | 2,395 | 2,644 | 2,480 | 2,488 | ||||||||||||||
Southern California | 6,020 | 6,171 | 5,674 | 3,378 | 4,841 | ||||||||||||||
Total nonaccruing loans | $ | 16,103 | $ | 17,565 | $ | 17,155 | $ | 12,019 | $ | 14,057 | |||||||||
21 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) | |||||||||||||||||||
4Q19 | 3Q19 | 2Q19 | 1Q19 | 4Q18 | |||||||||||||||
ROACE AND ROATCE: | |||||||||||||||||||
Net income attributable to the Company (GAAP) (A) | $ | 21,244 | $ | 19,962 | $ | 19,380 | $ | 19,442 | $ | 33,302 | |||||||||
ADD: Amortization of intangibles, net of tax | 534 | 530 | 531 | 531 | 537 | ||||||||||||||
Tangible common net income (non-GAAP) (B) | $ | 21,778 | $ | 20,492 | $ | 19,911 | $ | 19,973 | $ | 33,839 | |||||||||
Total average shareholders’ equity (C) | $ | 818,816 | $ | 807,890 | $ | 790,844 | $ | 766,283 | $ | 739,313 | |||||||||
LESS: Average goodwill and intangibles, net 22 | (68,031) | (68,359) | (68,889) | (69,498) | (83,153) | ||||||||||||||
Average tangible common equity (non-GAAP) (D) | $ | 750,785 | $ | 739,531 | $ | 721,955 | $ | 696,785 | $ | 656,160 | |||||||||
ROACE (annualized) (A/C) | 10.29 | % | 9.80 | % | 9.83 | % | 10.29 | % | 17.87 | % | |||||||||
ROATCE (annualized) (B/D) | 11.51 | % | 10.99 | % | 11.06 | % | 11.63 | % | 20.46 | % | |||||||||
PRE-TAX, PRE-PROVISION INCOME: | |||||||||||||||||||
Income before income taxes (GAAP) | $ | 28,129 | $ | 25,575 | $ | 24,818 | $ | 24,459 | $ | 42,192 | |||||||||
ADD BACK: Provision/ (credit) for loan losses | (3,668) | 167 | 1,363 | (1,426) | 93 | ||||||||||||||
Pre-tax, pre-provision income (non-GAAP) | $ | 24,461 | $ | 25,742 | $ | 26,181 | $ | 23,033 | $ | 42,285 | |||||||||
CORE NET INTEREST INCOME AND MARGIN: | |||||||||||||||||||
Net interest income (GAAP) | $ | 56,125 | $ | 56,153 | $ | 57,460 | $ | 58,338 | $ | 59,997 | |||||||||
LESS: Interest recovered on previous nonaccrual loans | 24 | 180 | — | 258 | 986 | ||||||||||||||
Net interest income, excluding interest recovered while loans on nonaccrual status ("Core net interest income") (non-GAAP) | $ | 56,101 | $ | 55,973 | $ | 57,460 | $ | 58,080 | $ | 59,011 | |||||||||
Net interest margin, excluding interest recovered while loans on nonaccrual status ("Core net interest margin") (non-GAAP) | 2.70 | % | 2.71 | % | 2.78 | % | 2.89 | % | 2.90 | % | |||||||||
TANGIBLE COMMON EQUITY: | |||||||||||||||||||
Total Shareholders’ Equity (GAAP) | $ | 819,018 | $ | 808,688 | $ | 798,211 | $ | 778,819 | $ | 753,954 | |||||||||
LESS: Goodwill and intangibles, net | (67,959) | (68,229) | (68,491) | (69,162) | (69,834) | ||||||||||||||
Tangible common equity (non-GAAP) (A) | $ | 751,059 | $ | 740,459 | $ | 729,720 | $ | 709,657 | $ | 684,120 | |||||||||
Total Assets (GAAP) | $ | 8,830,501 | $ | 8,690,944 | $ | 8,712,873 | $ | 8,572,143 | $ | 8,494,625 | |||||||||
LESS: Goodwill and intangibles, net | (67,959) | (68,229) | (68,491) | (69,162) | (69,834) | ||||||||||||||
Tangible assets (non-GAAP) (B) | $ | 8,762,542 | $ | 8,622,715 | $ | 8,644,382 | $ | 8,502,981 | $ | 8,424,791 | |||||||||
End of Period Shares Outstanding (C) | 83,265,674 | 83,241,952 | 83,774,335 | 83,773,650 | 83,655,651 | ||||||||||||||
Tangible common equity/ Tangible assets (non-GAAP) (A/B) | 8.57 | % | 8.59 | % | 8.44 | % | 8.35 | % | 8.12 | % | |||||||||
Tangible Book Value Per Share (non-GAAP) (A/C) | $9.02 | $8.90 | $8.71 | $8.47 | $8.18 | ||||||||||||||
22 Average goodwill and intangibles, net includes the balances of BOS through the closing date in 2018. | |||||||||||||||||||
BOSTON PRIVATE FINANCIAL HOLDINGS, INC. | |||||||||||||||||||
Reconciliations of Non-GAAP Financial Measures | |||||||||||||||||||
Unaudited ($ in thousands) | |||||||||||||||||||
4Q19 | 3Q19 | 2Q19 | 1Q19 | 4Q18 | |||||||||||||||
RETURN ON AVERAGE ASSETS: | |||||||||||||||||||
Net income (GAAP) (A) | $ | 21,244 | $ | 19,962 | $ | 19,380 | $ | 19,442 | $ | 33,302 | |||||||||
Average Assets (non-GAAP) (B) | 8,738,750 | 8,665,352 | 8,679,506 | 8,493,725 | 8,445,298 | ||||||||||||||
Return on average assets (annualized) (non-GAAP) (A/B) | 0.96 | % | 0.91 | % | 0.90 | % | 0.93 | % | 1.56 | % | |||||||||
EFFICIENCY RATIO: | |||||||||||||||||||
Total noninterest expense (GAAP) (A) | $ | 58,457 | $ | 55,537 | $ | 55,659 | $ | 60,553 | $ | 63,557 | |||||||||
Less: Amortization of intangibles | 676 | 671 | 672 | 672 | 680 | ||||||||||||||
Less: Restructuring | — | — | — | 1,646 | 2,065 | ||||||||||||||
Total noninterest expense (non-GAAP) (B) | $ | 57,781 | $ | 54,866 | $ | 54,987 | $ | 58,235 | $ | 60,812 | |||||||||
Net interest income (GAAP) | $ | 56,125 | $ | 56,153 | $ | 57,460 | $ | 58,338 | $ | 59,997 | |||||||||
Total core fees and income (GAAP) | 24,755 | 25,155 | 24,292 | 24,280 | 28,691 | ||||||||||||||
Gain on sale of affiliate (GAAP) | — | — | — | — | 18,142 | ||||||||||||||
Total other income (GAAP) | 2,038 | (29) | 88 | 968 | (988) | ||||||||||||||
Total revenue (GAAP) (C) | $ | 82,918 | $ | 81,279 | $ | 81,840 | $ | 83,586 | $ | 105,842 | |||||||||
Efficiency ratio (GAAP) (A/C) | 70.5 | % | 68.3 | % | 68.0 | % | 72.4 | % | 60.0 | % | |||||||||
Efficiency ratio, excluding amortization of intangibles and restructuring, if any (non-GAAP) (B/C) | 69.7 | % | 67.5 | % | 67.2 | % | 69.7 | % | 57.1 | % | |||||||||
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 | 2,038 | (29) | 88 | 877 | (392) | ||||||||||||||
Total other income (GAAP) | $ | 2,038 | $ | (29) | $ | 88 | $ | 968 | $ | 17,154 | |||||||||
BOSTON PRIVATE FINANCIAL HOLDINGS, INC. | |||||||||||||||||||
Reconciliations of Non-GAAP measures: Operating Adjustments | |||||||||||||||||||
Unaudited ($ in thousands, except share and per share data) | |||||||||||||||||||
4Q19 | 3Q19 | 2Q19 | 1Q19 | 4Q18 | |||||||||||||||
NET INCOME ATTRIBUTABLE TO THE COMPANY: | |||||||||||||||||||
Net Income Attributable to the Company (GAAP) | $ | 21,244 | $ | 19,962 | $ | 19,380 | $ | 19,442 | $ | 33,302 | |||||||||
LESS: Gain on fair value of contingent considerations receivable 23 | 1,109 | — | — | — | — | ||||||||||||||
LESS: Gain on sale of affiliate | — | — | — | — | 18,142 | ||||||||||||||
ADD: Information services 24 | — | — | — | — | (441) | ||||||||||||||
ADD: Restructuring | — | — | — | 1,646 | 2,065 | ||||||||||||||
ADD: Tax adjustments 25 | — | — | — | — | 3,502 | ||||||||||||||
Tax effect at statutory rate | 322 | — | — | (346) | (341) | ||||||||||||||
Net Income Attributable to the Company (non-GAAP) | $ | 20,457 | $ | 19,962 | $ | 19,380 | $ | 20,742 | $ | 19,945 | |||||||||
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS: | |||||||||||||||||||
Net Income Attributable to Common Shareholders (GAAP) | $ | 21,342 | $ | 20,266 | $ | 18,564 | $ | 20,999 | $ | 35,996 | |||||||||
LESS: Gain on fair value of contingent considerations receivable 23 | 1,109 | — | — | — | — | ||||||||||||||
LESS: Gain on sale of affiliate | — | — | — | — | 18,142 | ||||||||||||||
ADD: Information services 24 | — | — | — | — | (441) | ||||||||||||||
ADD: Restructuring | — | — | — | 1,646 | 2,065 | ||||||||||||||
ADD: Tax adjustments 25 | — | — | — | — | 3,502 | ||||||||||||||
Tax effect at statutory rate | 322 | — | — | (346) | (341) | ||||||||||||||
Net income attributable to the common shareholders, treasury stock method, excluding notable items (non-GAAP) | $ | 20,555 | $ | 20,266 | $ | 18,564 | $ | 22,299 | $ | 22,639 | |||||||||
Weighted average diluted shares outstanding | 83,637,786 | 83,956,708 | 84,048,972 | 84,010,450 | 84,863,779 | ||||||||||||||
Diluted total earnings per share (GAAP) | $ | 0.26 | $ | 0.24 | $ | 0.22 | $ | 0.25 | $ | 0.42 | |||||||||
Diluted total earnings per share, excluding notable items (non-GAAP) | $ | 0.25 | $ | 0.24 | $ | 0.22 | $ | 0.27 | $ | 0.27 | |||||||||
Average common equity (non-GAAP) | $ | 818,816 | $ | 807,890 | $ | 790,844 | $ | 766,283 | $ | 739,313 | |||||||||
Average tangible common equity (non-GAAP) | $ | 750,785 | $ | 739,531 | $ | 721,955 | $ | 696,785 | $ | 656,160 | |||||||||
Return on average common equity, excluding notable items (non-GAAP) | 9.91 | % | 9.80 | % | 9.83 | % | 10.98 | % | 10.70 | % | |||||||||
Return on average tangible common equity, excluding notable items (non-GAAP) | 11.09 | % | 10.99 | % | 11.06 | % | 12.38 | % | 12.38 | % | |||||||||
Pre-tax, pre-provision income (non-GAAP) | $ | 24,461 | $ | 25,742 | $ | 26,181 | $ | 23,033 | $ | 42,285 | |||||||||
LESS: Gain on fair value of contingent considerations receivable 23 | 1,109 | — | — | — | — | ||||||||||||||
LESS: Gain on sale of affiliate | — | — | — | — | 18,142 | ||||||||||||||
ADD: Information services 24 | — | — | — | — | (441) | ||||||||||||||
ADD: Restructuring | — | — | — | 1,646 | 2,065 | ||||||||||||||
Pre-tax, pre-provision income, excluding notable items (non-GAAP) | $ | 23,352 | $ | 25,742 | $ | 26,181 | $ | 24,679 | $ | 25,767 | |||||||||
23 In the fourth quarter of 2019, there was a $1.1 million gain related to the revaluation of the fair value of the estimated future cash flows related to the BOS contingent consideration receivable. 24 In the fourth quarter of 2018, $0.4 million of Information services expense was reclassified to Restructuring expense in conjunction with the announcement of the Company's formal restructuring plan. 25 Additional tax expense in the fourth quarter of 2018 relates to the completion of the sale of BOS. | |||||||||||||||||||
BOSTON PRIVATE FINANCIAL HOLDINGS, INC. | |||||||||||||||||||||||
Reconciliations of Non-GAAP measures: Operating Adjustments | |||||||||||||||||||||||
Unaudited ($ in thousands, except share and per share data) | |||||||||||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||||||||||
December 31, 2019 | December 31, 2019 | ||||||||||||||||||||||
GAAP or
| Notable
| Operating
| GAAP or
| Notable
| Operating
| ||||||||||||||||||
Total revenue | $ | 82,918 | $ | (1,109 | ) | $ | 81,809 | $ | 329,623 | $ | (1,109 | ) | $ | 328,514 | |||||||||
Total operating expense | 58,457 | — | 58,457 | 230,206 | (1,646 | ) | 228,560 | ||||||||||||||||
Pre-tax, pre-provision income | 24,461 | (1,109 | ) | 23,352 | 99,417 | 537 | 99,954 | ||||||||||||||||
Income before income taxes | 28,129 | (1,109 | ) | 27,020 | 102,981 | 537 | 103,518 | ||||||||||||||||
Income tax (expense)/benefit | 6,788 | (322 | ) | 6,466 | 22,591 | 24 | 22,615 | ||||||||||||||||
Net income attributable to the Company | $ | 21,244 | $ | (787 | ) | $ | 20,457 | $ | 80,028 | $ | 513 | $ | 80,541 | ||||||||||
Net income attributable to the Common Shareholders | $ | 21,342 | $ | (787 | ) | $ | 20,555 | $ | 81,171 | $ | 513 | $ | 81,684 | ||||||||||
Weighted average diluted shares outstanding | 83,637,786 | 83,637,786 | 83,637,786 | 83,920,792 | 83,920,792 | 83,920,792 | |||||||||||||||||
Diluted total earnings per share | $ | 0.26 | $ | (0.01 | ) | $ | 0.25 | $ | 0.97 | $ | — | $ | 0.97 | ||||||||||
Average common equity | 818,816 | 818,816 | 797,053 | 797,053 | |||||||||||||||||||
Return on average common equity | 10.29 | % | 9.91 | % | 10.04 | % | 10.10 | % | |||||||||||||||
Average tangible common equity | 750,785 | 750,785 | 728,370 | 728,370 | |||||||||||||||||||
Return on average tangible common equity | 11.51 | % | 11.09 | % | 11.28 | % | 11.35 | % | |||||||||||||||
Effective tax rate on continuing operations | 24.1 | % | 23.9 | % | 21.9 | % | 21.8 | % | |||||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20200122005756/en/
Contacts:
(617) 912-4386
abromley@bostonprivate.com
