Boston Private Financial Holdings, Inc. (NASDAQ: BPFH) (the “Company” or “Boston Private”) today reported first quarter 2021 Net income attributable to the Company of $10.7 million, compared to $25.0 million for the fourth quarter of 2020 and $0.8 million for the first quarter of 2020. First quarter 2021 Diluted earnings per share were $0.13, compared to $0.30 in the fourth quarter of 2021 and $0.01 in the first quarter of 2020.
"I am proud of the dedication and commitment shown by the Boston Private employees who continue to deliver exceptional client service and execute on our strategic objectives, while also preparing for our pending merger with SVB Financial Group," said Anthony DeChellis, CEO of Boston Private. "This quarter's financial results include transaction costs related to the pending merger with SVB Financial Group, a release from our allowance for loan losses, and continued strong deposit growth."
Announced Merger
As previously announced, the Company entered into a definitive merger agreement with SVB Financial Group ("SVB") pursuant to which SVB will acquire Boston Private. The transaction was unanimously approved by both companies' Boards of Directors and is expected to close in mid-2021, subject to the satisfaction of customary closing conditions, including receipt of customary regulatory approvals and approval by the shareholders of Boston Private.
Summary Financial Results | |||||||||||||||
% Change | |||||||||||||||
($ in millions, except for per share data) | 1Q21 | 4Q20 | 1Q20 | LQ | Y/Y | ||||||||||
Net income - GAAP | $10.7 | $25.0 | $0.8 | (57) | % | nm | |||||||||
Diluted earnings per share - GAAP | $0.13 | $0.30 | $0.01 | (57) | % | nm | |||||||||
Non-GAAP Financial Measures: | |||||||||||||||
Pre-tax, pre-provision income | $9.7 | $28.1 | $17.9 | (65) | % | (46) | % | ||||||||
Return on average common equity ("ROACE") | 4.9 | % | 11.5 | % | 0.4 | % | |||||||||
Return on average tangible common equity ("ROATCE") | 5.6 | % | 12.7 | % | 0.7 | % | |||||||||
nm = not meaningful | |||||||||||||||
The Company's financial results in the first quarter of 2021 were impacted by:
- Transaction costs of $10.7 million related to the proposed merger with SVB, or ($0.09) per diluted share on a tax-effected basis
- Gain of $2.4 million related to the revaluation of a receivable from the divestiture of former affiliate, Bingham, Osborn & Scarborough, LLC ("BOS"), or $0.02 per diluted share on a tax-effected basis
- Total provision credit of $9.0 million, including a provision credit for loan losses of $7.0 million and a credit for unfunded loan commitments of $2.0 million, or $0.08 per diluted share on a tax-effected basis
Net Interest Income and Margin | |||||||||||||||
% Change | |||||||||||||||
($ in millions) | 1Q21 | 4Q20 | 1Q20 | LQ | Y/Y | ||||||||||
Net interest income | $59.5 | $59.4 | $57.3 | — | % | 4 | % | ||||||||
Net interest margin | 2.45 | % | 2.52 | % | 2.76 | % | |||||||||
Net interest income for the first quarter of 2021 was $59.5 million, flat linked quarter and a 4% increase year-over-year. The year-over-year increase was primarily driven by $3.6 million of Paycheck Protection Program ("PPP") loan-related income recognized in the first quarter of 2021. The Small Business Administration ("SBA") forgave $75 million of PPP loans in the first quarter of 2021, which drove the accelerated recognition of PPP income.
Net interest margin decreased 7 basis points on a linked quarter basis to 2.45%. The decline was primarily driven by excess cash and investments balances and lower asset yields, partially offset by lower funding costs.
Noninterest Income | |||||||||||||||
% Change | |||||||||||||||
($ in millions) | 1Q21 | 4Q20 | 1Q20 | LQ | Y/Y | ||||||||||
Wealth management and trust fees | $19.1 | $19.0 | $18.4 | 1 | % | 4 | % | ||||||||
Investment management fees | 0.5 | 1.2 | 1.9 | (58) | % | (75) | % | ||||||||
Private banking fees 1 | 3.2 | 5.0 | 2.6 | nm | 22 | % | |||||||||
Total core fees and income | $22.8 | $25.2 | $22.9 | (10) | % | — | % | ||||||||
Total other income | 3.4 | 1.4 | (1.4) | nm | nm | ||||||||||
Total noninterest income | $26.2 | $26.7 | $21.5 | (2) | % | 22 | % | ||||||||
nm = not meaningful | |||||||||||||||
1 Private banking fees includes Other banking fee income and Gain/(loss) on sale of loans, net | |||||||||||||||
Total core fees and income for the first quarter of 2021 were $22.8 million, a 10% decrease linked quarter. The linked quarter decrease was primarily driven by lower swap fee income within Private banking fees and lower Investment management fees in the first quarter of 2021.
Total other income includes a gain of $2.4 million for the first quarter of 2021 related to the revaluation of the BOS receivable.
Assets Under Management/Advisory | |||||||||||||||
% Change | |||||||||||||||
($ in millions) | 1Q21 | 4Q20 | 1Q20 | LQ | Y/Y | ||||||||||
Wealth Management and Trust | $17,002 | $16,574 | $13,497 | 3 | % | 26 | % | ||||||||
Other 2 | 196 | 526 | 1,016 | (63) | % | (81) | % | ||||||||
Total assets under management/advisory | $17,198 | $17,100 | $14,513 | 1 | % | 19 | % | ||||||||
Net flows | |||||||||||||||
Wealth Management and Trust | $(20) | $(128) | $176 | ||||||||||||
Other 2 | (388) | (268) | (26) | ||||||||||||
Total net flows | $(408) | $(396) | $150 | ||||||||||||
2 Includes results from DGHM | |||||||||||||||
Total AUM was $17.2 billion as of March 31, 2021, a 1% increase linked quarter. The linked quarter increase was primarily driven by the impact of higher equity market values, partially offset by net outflows.
Total net flows were negative $408 million during the first quarter of 2021, driven by net flows of negative $388 million at DGHM and negative $20 million in the Wealth Management and Trust segment. New business into the Wealth Management & Trust segment was $231 million for the first quarter of 2021, compared to $297 million for the fourth quarter of 2020.
Noninterest Expense | ||||||||||||
% Change | ||||||||||||
($ in millions) | 1Q21 | 4Q20 | 1Q20 | LQ | Y/Y | |||||||
Salaries and employee benefits | $40.9 | $36.0 | $35.1 | 14 | % | 17 | % | |||||
Occupancy and equipment | 8.2 | 7.7 | 7.6 | 6 | % | 7 | % | |||||
Information systems | 9.7 | 8.6 | 6.7 | 13 | % | 45 | % | |||||
Professional services | 3.3 | 2.7 | 3.6 | 20 | % | (8) | % | |||||
Merger costs | 10.7 | — | — | nm | nm | |||||||
Marketing and business development | 0.6 | 1.2 | 1.9 | (46) | % | (67) | % | |||||
Amortization of intangibles | 0.7 | 0.6 | 0.7 | 18 | % | (7) | % | |||||
FDIC insurance | 1.0 | 0.9 | — | 10 | % | n/a | ||||||
Other | 0.9 | 0.2 | 5.2 | nm | (83) | % | ||||||
Total noninterest expense | $75.9 | $58.0 | $60.9 | 31 | % | 25 | % | |||||
Memo: Excluding Off-Balance Sheet Provision | ||||||||||||
Reserve for unfunded loan commitments | $(2.0) | $(2.4) | $1.8 | (16) | % | nm | ||||||
Total noninterest expense, excluding Reserve for unfunded loan commitments (non-GAAP) | $77.9 | $60.4 | $59.1 | 29 | % | 32 | % | |||||
Total noninterest expense for the first quarter of 2021 was $75.9 million, a 31% increase linked quarter and a 25% increase year-over-year. The increase was primarily driven by $10.7 million of transaction costs within Merger costs expense related to the proposed merger with SVB. The linked quarter increase was also driven by seasonal compensation expense for bonuses and payroll taxes, and both the linked quarter and year-over-year increases were also driven by higher Information systems expense from technology initiatives placed in service.
Income Tax Expense
The Company's effective tax rate for the first quarter of 2021 was 36.3%. The effective tax rate is higher primarily due to the expected non-deductibility of certain transaction costs related to the proposed merger with SVB.
Loans - QTD Averages & Yields | |||||||||||||||
% Change | |||||||||||||||
($ in millions) | 1Q21 | 4Q20 | 1Q20 | LQ | Y/Y | ||||||||||
Commercial and industrial | $1,034 | $1,036 | $1,149 | — | % | (10) | % | ||||||||
Paycheck Protection Program | 327 | 349 | — | (6) | % | nm | |||||||||
Commercial real estate | 2,723 | 2,711 | 2,582 | — | % | 5 | % | ||||||||
Construction and land | 165 | 172 | 233 | (4) | % | (29) | % | ||||||||
Residential | 2,667 | 2,721 | 2,851 | (2) | % | (6) | % | ||||||||
Home equity | 76 | 79 | 86 | (4) | % | (11) | % | ||||||||
| Consumer and other | 122 | 121 | 132 | 1 | % | (8) | % | ||||||||
Total loans | $7,115 | $7,189 | $7,034 | (1) | % | 1 | % | ||||||||
Total loans, excluding PPP (non-GAAP) | $6,789 | $6,840 | $7,034 | (1) | % | (3) | % | ||||||||
Total loan yields | 3.26 | % | 3.31 | % | 3.75 | % | |||||||||
Average total loans, excluding PPP (non-GAAP) in the first quarter of 2021 decreased 1% linked quarter and decreased 3% year-over-year.
- Average Commercial and industrial loans decreased 10% year-over-year driven by lower revolving line usage
- Average Residential mortgage loans decreased 6% year-over-year, driven by the sale of $72 million of loans late in the third quarter of 2020 and slowed originations throughout 2020
- Average Commercial real estate loans increased 5% year-over-year, driven by increased loan balances attributable to the debt service reserve program and the conversion of two loans from construction to permanent financing during the fourth quarter of 2020
- Average PPP loans decreased 6% linked quarter. End-of-period PPP loans increased 12% linked quarter as $130 million of originations late in the quarter were partially offset by the SBA's forgiveness of $75 million of loans early in the first quarter of 2021
Deposits - QTD Averages & Costs | |||||||||||||||
% Change | |||||||||||||||
($ in millions) | 1Q21 | 4Q20 | 1Q20 | LQ | Y/Y | ||||||||||
Noninterest bearing deposits | $2,552 | $2,483 | $2,046 | 3 | % | 25 | % | ||||||||
Interest bearing deposits | 6,277 | 5,868 | 5,061 | 7 | % | 24 | % | ||||||||
Total deposits | $8,829 | $8,351 | $7,107 | 6 | % | 24 | % | ||||||||
Cost of total deposits | 0.22 | % | 0.26 | % | 0.72 | % | |||||||||
Cost of total interest-bearing deposits | 0.30 | % | 0.37 | % | 1.02 | % | |||||||||
Average total deposits in the first quarter of 2021 increased 6% linked quarter and 24% year-over-year to $8.8 billion, driven by a combination of existing and new client balances.
Provision and Asset Quality | |||||||||||||||
($ in millions) | 1Q21 | 4Q20 | 3Q20 | 2Q20 | 1Q20 | ||||||||||
Provision and Allowance | |||||||||||||||
Provision/(credit) for loan losses | $(7.0) | $(3.0) | $(4.6) | $22.6 | $17.0 | ||||||||||
Reserve for unfunded loan commitments | (2.0) | (2.4) | 1.8 | 2.8 | 1.8 | ||||||||||
Total Provision/(credit) for credit losses | $(9.0) | $(5.4) | $(2.8) | $25.4 | $18.8 | ||||||||||
Allowance for loan losses as a % of Total loans | 1.03 | % | 1.14 | % | 1.17 | % | 1.22 | % | 0.97 | % | |||||
Asset Quality | |||||||||||||||
Total net loans (charged-off)/ recovered | $(0.2) | $(0.3) | $(0.2) | $(1.5) | $(0.3) | ||||||||||
Total nonaccrual loans | $25.8 | $23.9 | $41.3 | $25.6 | $24.3 | ||||||||||
Nonaccrual loans as a % of Total loans | 0.36 | % | 0.34 | % | 0.57 | % | 0.35 | % | 0.35 | % | |||||
Special mention loans (criticized loans) | $152.5 | $187.2 | $199.5 | $191.9 | $92.6 | ||||||||||
Classified loans | 161.9 | 130.7 | 123.1 | 114.2 | 112.3 | ||||||||||
Total criticized and classified loans | $314.4 | $318.0 | $322.6 | $306.1 | $204.9 | ||||||||||
The Company recorded a Total provision credit for credit losses of $9.0 million during the first quarter of 2021. The provision release was primarily driven by an improved economic forecast related to the current expected credit losses methodology and a change in the weighting of forecast scenarios used. The Allowance for loan losses as a percentage of Total loans, excluding PPP loans (non-GAAP), was 1.08% in the first quarter of 2021, compared to 1.19% in the fourth quarter of 2020.
Total nonaccrual loans as of March 31, 2021 were $25.8 million, an increase of $1.9 million, or 8%, on a linked quarter basis, primarily driven by one Commercial real estate relationship in New England and one Commercial and industrial relationship in Northern California.
Total criticized and classified loans as of March 31, 2021 were $314.4 million, a decrease of $3.6 million, or 1%, linked quarter. Classified loans increased 24% to $161.9 million in the first quarter of 2021, primarily driven by the downgrade of three Commercial real estate loans in New England and Northern California.
As of March 31, 2021:
- Residential loans on deferral totaled approximately $20 million, or 2.7% of total residential loans, compared to a peak of approximately $220 million, or 7% of total Residential loans, in the second quarter of 2020. This represents a decrease of 91% from the peak in the second quarter of 2020
- Commercial and industrial loans on deferral totaled approximately $6 million, or 0.5% of total Commercial and industrial loans, compared to a peak of approximately $125 million, or 13% of total Commercial and industrial loans, in the second quarter of 2020. This represents a decrease of 95% from the peak in the second quarter of 2020
- Borrowers with loans totaling $1.3 billion that qualified for and accepted the Commercial real estate debt service reserve program remain in the program, representing a total loan balance of approximately $70 million, or 2.7% of total Commercial real estate loans. The twelve month coverage period for debt service reserve balances will elapse in the second quarter of 2021
Capital | |||||||||||||||
1Q21 | 4Q20 | 3Q20 | 2Q20 | 1Q20 | |||||||||||
Tangible common equity/ Tangible assets (non-GAAP) | 7.6 | % | 8.0 | % | 8.3 | % | 8.3 | % | 8.8 | % | |||||
Tangible book value per share (non-GAAP) | $9.61 | $9.73 | $9.48 | $9.25 | $9.31 | ||||||||||
Regulatory Capital Ratios: 3 | |||||||||||||||
Tier 1 common equity | 11.4 | % | 11.5 | % | 11.3 | % | 11.1 | % | 11.2 | % | |||||
Tier 1 risk-based capital | 12.8 | % | 13.0 | % | 12.8 | % | 12.6 | % | 12.7 | % | |||||
Total risk-based capital | 14.0 | % | 14.3 | % | 14.1 | % | 13.9 | % | 13.8 | % | |||||
Tier 1 leverage capital | 8.7 | % | 8.9 | % | 9.2 | % | 9.2 | % | 9.7 | % | |||||
3 Current quarter information is presented based on estimated data. | |||||||||||||||
The Company's tangible book value per share increased 3% year-over-year to $9.61 in the first quarter of 2021.
Dividend Payments
Concurrent with the release of first quarter 2021 earnings, the Board of Directors of the Company declared a cash dividend payable to common shareholders of $0.06 per share. The record date for this dividend is May 7, 2021, and the payment date is May 21, 2021.
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; return on average assets; tangible book value per share; pre-tax, pre-provision income; tangible common equity / tangible assets; the efficiency ratio, excluding amortization of intangibles; net income/(loss) attributable to the Company, excluding notable items; total noninterest expense, excluding reserve for unfunded loan commitments; net income/(loss) attributable to the common shareholders, treasury stock method, excluding notable items; diluted earnings/(loss) per share, excluding notable items; average total loans, excluding PPP; and total loans, excluding PPP.
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 14 of the attached financial statements.
About Boston Private
Boston Private is a leading provider of integrated wealth management, trust and banking services to 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.
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 interest rate trends and future liquidity; expectations as to changes in assets, deposits and results of operations; the impact of the COVID-19 pandemic; future operations; market position and financial position; and prospects, plans and objectives of management. 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, the negative impacts and disruptions of the COVID-19 pandemic and measures taken to contain its spread on our employees, customers, business operations, credit quality, financial position, liquidity and results of operations; the failure to obtain our shareholder’s approval to our proposed merger with SVB; the risk that a condition to closing of the proposed merger may not be satisfied; the risk that a regulatory approval that may be required for the proposed merger is not obtained or is obtained subject to conditions that are not anticipated; the effect of the announcement of the proposed merger on our ability to maintain relationships with our key partners, customers and employees, and on our operating results and business generally; changes in customer behavior; the possibility that future credits losses are higher than currently expected due to changes in economic assumptions, customer behavior or adverse economic developments; turbulence in the capital and debt markets; changes in interest rates; increases in loan defaults and charge-off rates; decreases in the value of securities and other assets; changes in loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and investments; competitive pressures from other financial institutions; operational risks including, but not limited to, cybersecurity incidents, fraud, natural disasters and future pandemics; changes in regulation; reputational risk relating to the Company’s participation in the Paycheck Protection Program and other pandemic-related legislative and regulatory initiatives and programs; risks 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 2020 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 statements are made.
BOSTON PRIVATE FINANCIAL HOLDINGS, INC. | |||||||||||||||||||
Consolidated Balance Sheets | |||||||||||||||||||
Unaudited ($ in thousands, except share and per share data) | |||||||||||||||||||
1Q21 | 4Q20 | 3Q20 | 2Q20 | 1Q20 | |||||||||||||||
ASSETS: | |||||||||||||||||||
Cash and cash equivalents | $ | 1,389,943 | $ | 1,055,588 | $ | 546,263 | $ | 179,027 | $ | 61,714 | |||||||||
Investment securities available-for-sale | 1,339,408 | 1,243,693 | 1,011,327 | 1,002,970 | 993,166 | ||||||||||||||
Investment securities held-to-maturity | 31,943 | 35,223 | 38,600 | 42,495 | 45,395 | ||||||||||||||
Equity securities at fair value | 39,708 | 41,452 | 32,818 | 24,492 | 23,080 | ||||||||||||||
Stock in Federal Home Loan Bank and Federal Reserve Bank | 28,651 | 28,663 | 36,618 | 42,407 | 45,273 | ||||||||||||||
Loans held for sale | 8,434 | 17,421 | 15,074 | 9,786 | 7,671 | ||||||||||||||
Loans | 7,216,325 | 7,104,309 | 7,222,569 | 7,332,954 | 7,043,338 | ||||||||||||||
Less: Allowance for loan losses | 74,010 | 81,238 | 84,551 | 89,324 | 68,211 | ||||||||||||||
Loans, net of Allowance for loan losses | 7,142,315 | 7,023,071 | 7,138,018 | 7,243,630 | 6,975,127 | ||||||||||||||
Premises and equipment, net | 41,637 | 44,087 | 42,907 | 43,805 | 43,544 | ||||||||||||||
Goodwill | 57,607 | 57,607 | 57,607 | 57,607 | 57,607 | ||||||||||||||
Intangible assets, net | 8,389 | 9,056 | 8,898 | 8,935 | 9,637 | ||||||||||||||
Accrued interest receivable | 26,029 | 26,191 | 25,935 | 24,918 | 24,054 | ||||||||||||||
Deferred income taxes, net | 11,353 | 6,774 | 8,250 | 9,116 | 5,630 | ||||||||||||||
Right-of-use assets | 93,224 | 97,859 | 94,879 | 94,143 | 98,896 | ||||||||||||||
Other assets | 319,851 | 362,048 | 374,111 | 375,575 | 355,532 | ||||||||||||||
TOTAL ASSETS | $ | 10,538,492 | $ | 10,048,733 | $ | 9,431,305 | $ | 9,158,906 | $ | 8,746,326 | |||||||||
LIABILITIES: | |||||||||||||||||||
Deposits | $ | 9,147,618 | $ | 8,595,366 | $ | 7,827,719 | $ | 7,427,397 | $ | 6,835,572 | |||||||||
Securities sold under agreements to repurchase | 46,262 | 53,472 | 42,544 | 46,623 | 45,319 | ||||||||||||||
Federal funds purchased | — | — | — | — | 145,000 | ||||||||||||||
Federal Home Loan Bank borrowings | 115,019 | 114,659 | 296,236 | 426,313 | 491,254 | ||||||||||||||
Junior subordinated debentures | 106,363 | 106,363 | 106,363 | 106,363 | 106,363 | ||||||||||||||
Lease liabilities | 107,143 | 112,339 | 108,932 | 108,234 | 113,574 | ||||||||||||||
Other liabilities | 157,664 | 198,526 | 203,342 | 218,771 | 180,452 | ||||||||||||||
TOTAL LIABILITIES | 9,680,069 | 9,180,725 | 8,585,136 | 8,333,701 | 7,917,534 | ||||||||||||||
SHAREHOLDERS' EQUITY: | |||||||||||||||||||
Common stock, $1.00 par value; authorized: 170,000,000 shares | 82,455 | 82,334 | 82,255 | 82,058 | 81,800 | ||||||||||||||
Additional paid-in capital | 600,089 | 597,558 | 597,113 | 594,463 | 593,167 | ||||||||||||||
Retained earnings | 162,137 | 156,431 | 136,394 | 118,647 | 131,761 | ||||||||||||||
Accumulated other comprehensive income | 13,742 | 31,685 | 30,407 | 30,037 | 22,064 | ||||||||||||||
TOTAL SHAREHOLDERS' EQUITY | 858,423 | 868,008 | 846,169 | 825,205 | 828,792 | ||||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 10,538,492 | $ | 10,048,733 | $ | 9,431,305 | $ | 9,158,906 | $ | 8,746,326 | |||||||||
BOSTON PRIVATE FINANCIAL HOLDINGS, INC. | |||||||||||||||||||
Consolidated Income Statements | |||||||||||||||||||
Unaudited ($ in thousands, except share and per share data) | |||||||||||||||||||
1Q21 | 4Q20 | 3Q20 | 2Q20 | 1Q20 | |||||||||||||||
REVENUE: | |||||||||||||||||||
Interest income | $ | 64,893 | $ | 66,351 | $ | 65,453 | $ | 68,819 | $ | 73,082 | |||||||||
Interest expense | 5,416 | 6,944 | 7,629 | 9,881 | 15,825 | ||||||||||||||
Net interest income | 59,477 | 59,407 | 57,824 | 58,938 | 57,257 | ||||||||||||||
Provision/(credit) for loan losses 4 | (7,004) | (2,999) | (4,569) | 22,604 | 16,962 | ||||||||||||||
Net interest income after Provision/(credit) for loan losses | 66,481 | 62,406 | 62,393 | 36,334 | 40,295 | ||||||||||||||
Wealth management and trust fees 5 | 19,136 | 19,016 | 18,240 | 17,261 | 18,371 | ||||||||||||||
Investment management fees | 489 | 1,173 | 1,393 | 1,770 | 1,925 | ||||||||||||||
Private banking fee income | 2,411 | 4,304 | 1,320 | 2,395 | 2,490 | ||||||||||||||
Gain on sale of loans, net | 747 | 718 | 1,006 | 204 | 100 | ||||||||||||||
Total core fees and income | 22,783 | 25,211 | 21,959 | 21,630 | 22,886 | ||||||||||||||
Total other income | 3,387 | 1,445 | 1,086 | 1,032 | (1,365) | ||||||||||||||
TOTAL REVENUE 6 | 85,647 | 86,063 | 80,869 | 81,600 | 78,778 | ||||||||||||||
NONINTEREST EXPENSE: | |||||||||||||||||||
Salaries and employee benefits | 40,904 | 36,022 | 34,671 | 33,937 | 35,096 | ||||||||||||||
Occupancy and equipment | 8,205 | 7,723 | 8,150 | 7,560 | 7,646 | ||||||||||||||
Information systems | 9,719 | 8,633 | 7,096 | 7,113 | 6,725 | ||||||||||||||
Professional services | 3,302 | 2,744 | 4,025 | 3,446 | 3,601 | ||||||||||||||
Merger costs | 10,665 | — | — | — | — | ||||||||||||||
Marketing and business development | 624 | 1,154 | 935 | 2,313 | 1,890 | ||||||||||||||
Amortization of intangibles | 667 | 566 | 714 | 702 | 715 | ||||||||||||||
FDIC insurance | 967 | 876 | 960 | 767 | — | ||||||||||||||
Other 4 | 870 | 249 | 4,386 | 5,615 | 5,235 | ||||||||||||||
TOTAL NONINTEREST EXPENSE | 75,923 | 57,967 | 60,937 | 61,453 | 60,908 | ||||||||||||||
INCOME/(LOSS) BEFORE INCOME TAXES | 16,728 | 31,095 | 24,501 | (2,457) | 908 | ||||||||||||||
Income tax expense | 6,076 | 6,124 | 1,821 | 841 | 102 | ||||||||||||||
Net income/(loss) before attribution to noncontrolling interests | 10,652 | 24,971 | 22,680 | (3,298) | 806 | ||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | — | — | 6 | ||||||||||||||
NET INCOME/(LOSS) ATTRIBUTABLE TO THE COMPANY | $ | 10,652 | $ | 24,971 | $ | 22,680 | $ | (3,298) | $ | 800 | |||||||||
Adjustments, treasury stock method 7 | — | — | — | — | 414 | ||||||||||||||
NET INCOME/(LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ | 10,652 | $ | 24,971 | $ | 22,680 | $ | (3,298) | $ | 1,214 | |||||||||
COMMON SHARE DATA: | |||||||||||||||||||
Weighted average basic shares outstanding | 82,429,162 | 82,292,450 | 82,221,705 | 81,929,752 | 83,005,064 | ||||||||||||||
Weighted average diluted shares outstanding 8 | 83,934,107 | 82,764,339 | 82,362,338 | 81,929,752 | 83,318,041 | ||||||||||||||
Diluted earnings/(loss) per share | $ | 0.13 | $ | 0.30 | $ | 0.28 | $ | (0.04) | $ | 0.01 | |||||||||
4 Total Provision for credit losses includes the Provision/(credit) for loan losses and the Reserve for unfunded loan commitments within Other expense.
| |||||||||||||||||||
BOSTON PRIVATE FINANCIAL HOLDINGS, INC. | |||||||||||||||||||
Consolidated Financial Highlights | |||||||||||||||||||
Unaudited ($ in thousands, except share and per share data) | |||||||||||||||||||
1Q21 | 4Q20 | 3Q20 | 2Q20 | 1Q20 | |||||||||||||||
KEY STATISTICS: | |||||||||||||||||||
Return on average assets (non-GAAP) 9 | 0.42 | % | 1.00 | % | 0.96 | % | (0.15) | % | 0.04 | % | |||||||||
ROACE (non-GAAP) 9 | 4.91 | % | 11.50 | % | 10.68 | % | (1.58) | % | 0.39 | % | |||||||||
ROATCE (non-GAAP) 9 | 5.58 | % | 12.69 | % | 11.88 | % | (1.43) | % | 0.72 | % | |||||||||
Efficiency ratio (non-GAAP) 9 | 87.9 | % | 66.7 | % | 74.5 | % | 74.4 | % | 76.4 | % | |||||||||
Noninterest income to total revenue | 30.6 | % | 31.0 | % | 28.5 | % | 27.8 | % | 27.3 | % | |||||||||
Net interest margin | 2.45 | % | 2.52 | % | 2.61 | % | 2.75 | % | 2.76 | % | |||||||||
Average loan to average deposit ratio | 80.6 | % | 86.1 | % | 94.6 | % | 100.5 | % | 99.0 | % | |||||||||
Cost of total deposits | 0.22 | % | 0.26 | % | 0.33 | % | 0.41 | % | 0.72 | % | |||||||||
Cost of interest-bearing deposits | 0.30 | % | 0.37 | % | 0.48 | % | 0.59 | % | 1.02 | % | |||||||||
Cost of total funding | 0.24 | % | 0.32 | % | 0.37 | % | 0.50 | % | 0.83 | % | |||||||||
Allowance for loan losses / Total loans | 1.03 | % | 1.14 | % | 1.17 | % | 1.22 | % | 0.97 | % | |||||||||
Nonperforming loans / Total loans | 0.36 | % | 0.34 | % | 0.57 | % | 0.35 | % | 0.35 | % | |||||||||
Net (charge-offs)/recoveries / Total loans 9 | (0.01) | % | (0.02) | % | (0.01) | % | (0.08) | % | (0.02) | % | |||||||||
CAPITAL HIGHLIGHTS: | |||||||||||||||||||
Tier 1 common equity 3 | $ | 782,687 | $ | 773,017 | $ | 752,492 | $ | 731,316 | $ | 742,044 | |||||||||
Tier 1 capital 3 | $ | 882,709 | $ | 873,039 | $ | 852,514 | $ | 831,338 | $ | 842,066 | |||||||||
Total capital 3 | $ | 961,191 | $ | 956,919 | $ | 935,887 | $ | 913,936 | $ | 914,572 | |||||||||
Risk-weighted assets 3 | $ | 6,877,450 | $ | 6,706,524 | $ | 6,659,752 | $ | 6,593,957 | $ | 6,627,339 | |||||||||
Average assets for leverage 3 | $ | 10,180,856 | $ | 9,790,852 | $ | 9,237,942 | $ | 9,009,565 | $ | 8,691,254 | |||||||||
Tier 1 common equity ratio 3 | 11.38 | % | 11.53 | % | 11.30 | % | 11.09 | % | 11.20 | % | |||||||||
Tier 1 risk-based capital ratio 3 | 12.83 | % | 13.02 | % | 12.80 | % | 12.61 | % | 12.71 | % | |||||||||
Total risk-based capital ratio 3 | 13.98 | % | 14.27 | % | 14.05 | % | 13.86 | % | 13.80 | % | |||||||||
Tier 1 leverage capital ratio 3 | 8.67 | % | 8.92 | % | 9.23 | % | 9.23 | % | 9.69 | % | |||||||||
Total equity / Total assets | 8.15 | % | 8.64 | % | 8.97 | % | 9.01 | % | 9.48 | % | |||||||||
Tangible common equity / Tangible assets (non-GAAP) | 7.57 | % | 8.03 | % | 8.33 | % | 8.34 | % | 8.77 | % | |||||||||
End of period market price per share | $ | 13.32 | $ | 8.45 | $ | 5.52 | $ | 6.88 | $ | 7.15 | |||||||||
End of period shares outstanding | 82,455,432 | 82,334,257 | 82,254,594 | 82,058,483 | 81,800,486 | ||||||||||||||
Book value per common share | $ | 10.41 | $ | 10.54 | $ | 10.29 | $ | 10.06 | $ | 10.13 | |||||||||
Tangible book value per share (non-GAAP) | $ | 9.61 | $ | 9.73 | $ | 9.48 | $ | 9.25 | $ | 9.31 | |||||||||
Common Equity Repurchase Program: | |||||||||||||||||||
Total shares of common stock repurchased | — | — | — | — | 1,565,060 | ||||||||||||||
Average price paid per share of common stock | $ | — | $ | — | $ | — | $ | — | $ | 8.18 | |||||||||
Aggregate repurchases of common stock ($ in millions) | $ | — | $ | — | $ | — | $ | — | $ | 12.8 | |||||||||
3 Current quarter information is presented based on estimated data. 9 Annualized. | |||||||||||||||||||
BOSTON PRIVATE FINANCIAL HOLDINGS, INC. | |||||||||||||||||||
Consolidated AUM and Balance Sheet - End of Period Balances | |||||||||||||||||||
Unaudited ($ in thousands) | |||||||||||||||||||
1Q21 | 4Q20 | 3Q20 | 2Q20 | 1Q20 | |||||||||||||||
ASSETS UNDER MANAGEMENT AND ADVISORY ("AUM"): | |||||||||||||||||||
Wealth Management and Trust | $ | 17,002,000 | $ | 16,574,000 | $ | 15,581,000 | $ | 14,889,000 | $ | 13,497,000 | |||||||||
Other 2 | 196,000 | 526,000 | 672,000 | 1,067,000 | 1,016,000 | ||||||||||||||
TOTAL AUM | $ | 17,198,000 | $ | 17,100,000 | $ | 16,253,000 | $ | 15,956,000 | $ | 14,513,000 | |||||||||
AUM Rollforward: | |||||||||||||||||||
Beginning balance | $ | 17,100,000 | $ | 16,253,000 | $ | 15,956,000 | $ | 14,513,000 | $ | 16,768,000 | |||||||||
Net flows | (408,000) | (396,000) | (407,000) | (40,000) | 150,000 | ||||||||||||||
Market returns | 506,000 | 1,243,000 | 704,000 | 1,483,000 | (2,405,000) | ||||||||||||||
Ending balance | $ | 17,198,000 | $ | 17,100,000 | $ | 16,253,000 | $ | 15,956,000 | $ | 14,513,000 | |||||||||
AUM Net Flows: | |||||||||||||||||||
Wealth Management and Trust | $ | (20,000) | $ | (128,000) | $ | (12,000) | $ | 60,000 | $ | 176,000 | |||||||||
Other 2 | (388,000) | (268,000) | (395,000) | (100,000) | (26,000) | ||||||||||||||
TOTAL NET FLOWS | $ | (408,000) | $ | (396,000) | $ | (407,000) | $ | (40,000) | $ | 150,000 | |||||||||
DEPOSITS: | |||||||||||||||||||
Demand deposits (noninterest bearing) | $ | 2,651,733 | $ | 2,481,676 | $ | 2,346,126 | $ | 2,293,864 | $ | 2,020,440 | |||||||||
Savings and NOW | 906,892 | 905,692 | 756,797 | 758,656 | 653,006 | ||||||||||||||
Money market | 5,106,911 | 4,699,882 | 4,187,657 | 3,753,228 | 3,468,701 | ||||||||||||||
Certificates of deposit | 482,082 | 508,116 | 537,139 | 621,649 | 693,425 | ||||||||||||||
TOTAL DEPOSITS | $ | 9,147,618 | $ | 8,595,366 | $ | 7,827,719 | $ | 7,427,397 | $ | 6,835,572 | |||||||||
LOANS: | |||||||||||||||||||
Commercial and industrial | $ | 668,217 | $ | 558,343 | $ | 583,145 | $ | 565,748 | $ | 670,744 | |||||||||
Paycheck Protection Program | 351,170 | 312,356 | 371,496 | 370,034 | — | ||||||||||||||
Commercial tax-exempt | 488,507 | 442,159 | 472,342 | 419,264 | 445,319 | ||||||||||||||
Commercial real estate | 2,697,677 | 2,757,375 | 2,659,890 | 2,676,708 | 2,626,299 | ||||||||||||||
Construction and land | 181,482 | 159,204 | 211,697 | 240,211 | 238,293 | ||||||||||||||
Residential | 2,632,554 | 2,677,464 | 2,729,164 | 2,859,627 | 2,841,926 | ||||||||||||||
Home equity | 71,752 | 77,364 | 81,797 | 84,588 | 89,350 | ||||||||||||||
Consumer and other | 124,966 | 120,044 | 113,038 | 116,774 | 131,407 | ||||||||||||||
TOTAL LOANS | $ | 7,216,325 | $ | 7,104,309 | $ | 7,222,569 | $ | 7,332,954 | $ | 7,043,338 | |||||||||
2 Includes results from Dalton, Greiner, Hartman, Maher & Co, LLC ("DGHM") | |||||||||||||||||||
BOSTON PRIVATE FINANCIAL HOLDINGS, INC. | |||||||||||||||||||
Provision and Asset Quality | |||||||||||||||||||
Unaudited ($ in thousands) | |||||||||||||||||||
1Q21 | 4Q20 | 3Q20 | 2Q20 | 1Q20 | |||||||||||||||
PROVISION: | |||||||||||||||||||
Provision/(credit) for loan losses | $ | (7,004) | $ | (2,999) | $ | (4,569) | $ | 22,604 | $ | 16,962 | |||||||||
Reserve for unfunded loan commitments 4 | (2,016) | (2,386) | 1,750 | 2,829 | 1,827 | ||||||||||||||
TOTAL PROVISION/(CREDIT) FOR CREDIT LOSSES | $ | (9,020) | $ | (5,385) | $ | (2,819) | $ | 25,433 | $ | 18,789 | |||||||||
CHARGE-OFFS: | |||||||||||||||||||
Loan charge-offs | $ | (297) | $ | (511) | $ | (245) | $ | (1,546) | $ | (528) | |||||||||
Loan recoveries | 73 | 197 | 41 | 55 | 180 | ||||||||||||||
NET (CHARGE-OFFS)/RECOVERIES | $ | (224) | $ | (314) | $ | (204) | $ | (1,491) | $ | (348) | |||||||||
Net charge-offs to average loans (annualized) | (0.01) | % | (0.02) | % | (0.01) | % | (0.08) | % | (0.02) | % | |||||||||
Net (Charge-offs)/Recoveries by Loan Type: | |||||||||||||||||||
Commercial and industrial | $ | (258) | $ | (474) | $ | (136) | $ | (337) | $ | (473) | |||||||||
Commercial real estate | — | 160 | — | — | — | ||||||||||||||
Residential | 3 | — | — | — | — | ||||||||||||||
Home equity | — | — | — | (1,157) | 132 | ||||||||||||||
Consumer and other | 31 | — | (68) | 3 | (7) | ||||||||||||||
NET (CHARGE-OFFS)/RECOVERIES | $ | (224) | $ | (314) | $ | (204) | $ | (1,491) | $ | (348) | |||||||||
LOAN QUALITY DATA: | |||||||||||||||||||
Special mention loans | $ | 152,472 | $ | 187,237 | $ | 199,509 | $ | 191,882 | $ | 92,623 | |||||||||
Accruing classified loans 10 | 136,130 | 106,883 | 81,827 | 88,586 | 87,948 | ||||||||||||||
Nonaccrual loans | 25,764 | 23,851 | 41,263 | 25,604 | 24,314 | ||||||||||||||
Total classified | 161,894 | 130,734 | 123,090 | 114,190 | 112,262 | ||||||||||||||
Criticized and classified loans | $ | 314,366 | $ | 317,971 | $ | 322,599 | $ | 306,072 | $ | 204,885 | |||||||||
Loans 30-89 days past due and accruing 11 | $ | 7,249 | $ | 19,862 | $ | 5,635 | $ | 5,535 | $ | 14,852 | |||||||||
4 Total Provision/(credit) for credit losses includes the Provision/(credit) for loan losses and the Reserve for unfunded loan commitments within Other expense.
| |||||||||||||||||||
BOSTON PRIVATE FINANCIAL HOLDINGS, INC. | ||||||||||||||||||||||||||
Average Balances, Yields, and Rates | ||||||||||||||||||||||||||
Unaudited ($ in thousands) | ||||||||||||||||||||||||||
Average Balance | Interest Income/Expense | Average Yield/Rate | ||||||||||||||||||||||||
1Q21 | 4Q20 | 1Q20 | 1Q21 | 4Q20 | 1Q20 | 1Q21 | 4Q20 | 1Q20 | ||||||||||||||||||
INTEREST-EARNING ASSETS | ||||||||||||||||||||||||||
Cash and investments: | ||||||||||||||||||||||||||
Taxable investment securities | $ | 203,856 | $ | 209,143 | $ | 201,174 | $ | 782 | $ | 849 | $ | 868 | 1.54 | % | 1.62 | % | 1.73 | % | ||||||||
Non-taxable investment securities | 322,057 | 318,291 | 315,681 | 2,045 | 1,973 | 1,998 | 2.54 | % | 2.48 | % | 2.53 | % | ||||||||||||||
Mortgage-backed securities | 810,754 | 598,616 | 520,629 | 3,437 | 2,585 | 2,787 | 1.70 | % | 1.73 | % | 2.14 | % | ||||||||||||||
Short-term investments and other | 1,238,677 | 976,344 | 147,482 | 593 | 687 | 1,071 | 0.19 | % | 0.28 | % | 2.89 | % | ||||||||||||||
Total cash and investments | 2,575,344 | 2,102,394 | 1,184,966 | 6,857 | 6,094 | 6,724 | 1.07 | % | 1.16 | % | 2.27 | % | ||||||||||||||
Loans: 12 | ||||||||||||||||||||||||||
Commercial and industrial | 1,034,369 | 1,035,783 | 1,148,986 | 8,352 | 8,504 | 10,724 | 3.23 | % | 3.21 | % | 3.69 | % | ||||||||||||||
Paycheck Protection Program | 326,695 | 348,827 | — | 3,629 | 3,798 | — | 4.44 | % | 4.26 | % | — | % | ||||||||||||||
Commercial real estate | 2,723,249 | 2,711,396 | 2,582,305 | 23,187 | 24,096 | 27,482 | 3.41 | % | 3.48 | % | 4.21 | % | ||||||||||||||
Construction and land | 165,350 | 171,873 | 233,324 | 1,605 | 1,642 | 2,572 | 3.88 | % | 3.74 | % | 4.36 | % | ||||||||||||||
Residential | 2,667,440 | 2,720,733 | 2,850,833 | 20,226 | 21,041 | 23,468 | 3.03 | % | 3.09 | % | 3.29 | % | ||||||||||||||
Home equity | 76,336 | 79,485 | 86,048 | 551 | 676 | 952 | 2.93 | % | 3.38 | % | 4.45 | % | ||||||||||||||
| Consumer and other | 121,900 | 121,139 | 132,237 | 486 | 500 | 1,160 | 1.62 | % | 1.64 | % | 3.53 | % | ||||||||||||||
Total loans | 7,115,339 | 7,189,236 | 7,033,733 | 58,036 | 60,257 | 66,358 | 3.26 | % | 3.31 | % | 3.75 | % | ||||||||||||||
Total earning assets | 9,690,683 | 9,291,630 | 8,218,699 | 64,893 | 66,351 | 73,082 | 2.68 | % | 2.82 | % | 3.54 | % | ||||||||||||||
LESS: Allowance for loan losses | 81,125 | 84,679 | 51,730 | |||||||||||||||||||||||
Cash and due from banks | 38,897 | 38,732 | 49,571 | |||||||||||||||||||||||
Other assets | 631,970 | 651,008 | 562,851 | |||||||||||||||||||||||
TOTAL AVERAGE ASSETS | $ | 10,280,425 | $ | 9,896,691 | $ | 8,779,391 | ||||||||||||||||||||
INTEREST-BEARING LIABILITIES | ||||||||||||||||||||||||||
Interest-bearing deposits: 13 | ||||||||||||||||||||||||||
Savings and NOW | $ | 877,100 | $ | 793,923 | $ | 638,926 | $ | 180 | $ | 200 | $ | 232 | 0.08 | % | 0.10 | % | 0.15 | % | ||||||||
Money market | 4,911,146 | 4,551,046 | 3,753,045 | 3,831 | 4,255 | 9,657 | 0.32 | % | 0.37 | % | 1.03 | % | ||||||||||||||
Certificates of deposit | 489,037 | 522,567 | 668,818 | 680 | 981 | 2,907 | 0.56 | % | 0.75 | % | 1.75 | % | ||||||||||||||
Total interest-bearing deposits 13 | 6,277,283 | 5,867,536 | 5,060,789 | 4,691 | 5,436 | 12,796 | 0.30 | % | 0.37 | % | 1.02 | % | ||||||||||||||
Junior subordinated debentures | 106,363 | 106,363 | 106,363 | 481 | 481 | 917 | 1.81 | % | 1.77 | % | 3.41 | % | ||||||||||||||
FHLB borrowings and other | 180,234 | 267,865 | 455,813 | 244 | 1,027 | 2,112 | 0.54 | % | 1.50 | % | 1.83 | % | ||||||||||||||
Total interest-bearing liabilities 13 | 6,563,880 | 6,241,764 | 5,622,965 | 5,416 | 6,944 | 15,825 | 0.33 | % | 0.44 | % | 1.13 | % | ||||||||||||||
Noninterest bearing demand deposits 13 | 2,551,651 | 2,482,969 | 2,046,102 | |||||||||||||||||||||||
Payables and other liabilities | 285,453 | 310,820 | 270,371 | |||||||||||||||||||||||
Total average liabilities | 9,400,984 | 9,035,553 | 7,939,438 | |||||||||||||||||||||||
Redeemable noncontrolling interests | — | — | 1,018 | |||||||||||||||||||||||
Average shareholders’ equity | 879,441 | 861,138 | 838,935 | |||||||||||||||||||||||
TOTAL AVERAGE LIABILITIES, RNCI, AND SHAREHOLDERS’ EQUITY | $ | 10,280,425 | $ | 9,896,691 | $ | 8,779,391 | ||||||||||||||||||||
Net interest income | $ | 59,477 | $ | 59,407 | $ | 57,257 | ||||||||||||||||||||
Interest rate spread | 2.35 | % | 2.38 | % | 2.41 | % | ||||||||||||||||||||
Net interest margin | 2.45 | % | 2.52 | % | 2.76 | % | ||||||||||||||||||||
Average total deposits 13 | $ | 8,828,934 | $ | 8,350,505 | $ | 7,106,891 | 0.22 | % | 0.26 | % | 0.72 | % | ||||||||||||||
Average total deposits and borrowings 13 | $ | 9,115,531 | $ | 8,724,733 | $ | 7,669,067 | 0.24 | % | 0.32 | % | 0.83 | % | ||||||||||||||
12 Average loans includes Loans held for sale and Nonaccrual loans
| ||||||||||||||||||||||||||
BOSTON PRIVATE FINANCIAL HOLDINGS, INC. | |||||||||||||||||||
Regional Loan Data 14 | |||||||||||||||||||
Unaudited ($ in thousands) | |||||||||||||||||||
1Q21 | 4Q20 | 3Q20 | 2Q20 | 1Q20 | |||||||||||||||
New England | $ | 3,735,757 | $ | 3,593,925 | $ | 3,669,746 | $ | 3,781,603 | $ | 3,724,959 | |||||||||
Northern California | 1,759,812 | 1,776,682 | 1,763,556 | 1,741,255 | 1,618,668 | ||||||||||||||
Southern California | 1,720,756 | 1,733,702 | 1,789,267 | 1,810,096 | 1,699,711 | ||||||||||||||
Total loans | $ | 7,216,325 | $ | 7,104,309 | $ | 7,222,569 | $ | 7,332,954 | $ | 7,043,338 | |||||||||
Loans (charged-off)/recovered, net: | |||||||||||||||||||
New England | $ | 20 | $ | 162 | $ | (111) | $ | 7 | $ | 15 | |||||||||
Northern California | 9 | (147) | — | 3 | 122 | ||||||||||||||
Southern California | (253) | (329) | (93) | (1,501) | (485) | ||||||||||||||
Total net loans (charged-off)/recovered | $ | (224) | $ | (314) | $ | (204) | $ | (1,491) | $ | (348) | |||||||||
Special mention loans: | |||||||||||||||||||
New England | $ | 72,359 | $ | 94,235 | $ | 103,060 | $ | 83,026 | $ | 61,741 | |||||||||
Northern California | 57,751 | 64,361 | 63,192 | 75,609 | 5,947 | ||||||||||||||
Southern California | 22,362 | 28,641 | 33,257 | 33,247 | 24,935 | ||||||||||||||
Total special mention loans | $ | 152,472 | $ | 187,237 | $ | 199,509 | $ | 191,882 | $ | 92,623 | |||||||||
Accruing classified loans: | |||||||||||||||||||
New England | $ | 106,375 | $ | 89,582 | $ | 74,682 | $ | 53,124 | $ | 50,483 | |||||||||
Northern California | 13,147 | 340 | 4,589 | 21,712 | 24,843 | ||||||||||||||
Southern California | 16,608 | 16,961 | 2,556 | 13,750 | 12,622 | ||||||||||||||
Total accruing classified loans | $ | 136,130 | $ | 106,883 | $ | 81,827 | $ | 88,586 | $ | 87,948 | |||||||||
Nonaccruing loans: | |||||||||||||||||||
New England | $ | 14,197 | $ | 12,643 | $ | 11,807 | $ | 11,630 | $ | 11,965 | |||||||||
Northern California | 6,791 | 6,331 | 25,133 | 9,459 | 6,575 | ||||||||||||||
Southern California | 4,776 | 4,877 | 4,323 | 4,515 | 5,774 | ||||||||||||||
Total nonaccruing loans | $ | 25,764 | $ | 23,851 | $ | 41,263 | $ | 25,604 | $ | 24,314 | |||||||||
14 The concentration of the Private Banking loan data and credit quality is primarily based on the location of the lenders' regional offices. | |||||||||||||||||||
BOSTON PRIVATE FINANCIAL HOLDINGS, INC. | |||||||||||||||||||
Reconciliations of Non-GAAP Financial Measures | |||||||||||||||||||
Unaudited ($ in thousands, except share and per share data) | |||||||||||||||||||
1Q21 | 4Q20 | 3Q20 | 2Q20 | 1Q20 | |||||||||||||||
ROACE AND ROATCE: | |||||||||||||||||||
Net income/(loss) attributable to the Company (GAAP) (A) | $ | 10,652 | $ | 24,971 | $ | 22,680 | $ | (3,298) | $ | 800 | |||||||||
ADD: Amortization of intangibles, net of tax | 527 | 447 | 564 | 555 | 565 | ||||||||||||||
Tangible common net income/(loss) (non-GAAP) (B) | $ | 11,179 | $ | 25,418 | $ | 23,244 | $ | (2,743) | $ | 1,365 | |||||||||
Total average shareholders’ equity (C) | $ | 879,441 | $ | 861,138 | $ | 842,606 | $ | 834,882 | $ | 838,935 | |||||||||
LESS: Average goodwill and intangibles, net | (66,351) | (66,253) | (66,246) | (66,877) | (67,586) | ||||||||||||||
Average tangible common equity (non-GAAP) (D) | $ | 813,090 | $ | 794,885 | $ | 776,360 | $ | 768,005 | $ | 771,349 | |||||||||
ROACE (annualized) (A/C) | 4.91 % | 11.50% | 10.68% | (1.58)% | 0.39% | ||||||||||||||
ROATCE (annualized) (B/D) | 5.58 % | 12.69% | 11.88% | (1.43)% | 0.72% | ||||||||||||||
PRE-TAX, PRE-PROVISION INCOME: | |||||||||||||||||||
Income/(loss) before income taxes (GAAP) | $ | 16,728 | $ | 31,095 | $ | 24,501 | $ | (2,457) | $ | 908 | |||||||||
ADD BACK: Provision/(credit) for loan losses | (7,004) | (2,999) | (4,569) | 22,604 | 16,962 | ||||||||||||||
Pre-tax, pre-provision income (non-GAAP) | $ | 9,724 | $ | 28,096 | $ | 19,932 | $ | 20,147 | $ | 17,870 | |||||||||
TANGIBLE COMMON EQUITY: | |||||||||||||||||||
Total shareholders’ equity (GAAP) | $ | 858,423 | $ | 868,008 | $ | 846,169 | $ | 825,205 | $ | 828,792 | |||||||||
LESS: Goodwill and intangibles, net | (65,996) | (66,663) | (66,505) | (66,542) | (67,244) | ||||||||||||||
Tangible common equity (non-GAAP) (A) | $ | 792,427 | $ | 801,345 | $ | 779,664 | $ | 758,663 | $ | 761,548 | |||||||||
Total assets (GAAP) | $ | 10,538,492 | $ | 10,048,733 | $ | 9,431,305 | $ | 9,158,906 | $ | 8,746,326 | |||||||||
LESS: Goodwill and intangibles, net | (65,996) | (66,663) | (66,505) | (66,542) | (67,244) | ||||||||||||||
Tangible assets (non-GAAP) (B) | $ | 10,472,496 | $ | 9,982,070 | $ | 9,364,800 | $ | 9,092,364 | $ | 8,679,082 | |||||||||
End of period shares outstanding (C) | 82,455,432 | 82,334,257 | 82,254,594 | 82,058,483 | 81,800,486 | ||||||||||||||
Tangible common equity/ Tangible assets (non-GAAP) (A/B) | 7.57 % | 8.03% | 8.33% | 8.34% | 8.77% | ||||||||||||||
Tangible book value per share (non-GAAP) (A/C) | $9.61 | $9.73 | $9.48 | $9.25 | $9.31 | ||||||||||||||
AVERAGE LOANS: | |||||||||||||||||||
Total loans | $ | 7,115,339 | $ | 7,189,236 | $ | 7,282,598 | $ | 7,288,644 | $ | 7,033,733 | |||||||||
LESS: PPP | (326,695) | (348,827) | (373,047) | (283,619) | — | ||||||||||||||
Total loans, excluding PPP (non-GAAP) | $ | 6,788,644 | $ | 6,840,409 | $ | 6,909,551 | $ | 7,005,025 | $ | 7,033,733 | |||||||||
Total loan yields, excluding PPP (non-GAAP) | 3.21 % | 3.26% | 3.27% | 3.47% | 3.75% | ||||||||||||||
BOSTON PRIVATE FINANCIAL HOLDINGS, INC. | |||||||||||||||||||
Reconciliations of Non-GAAP Financial Measures | |||||||||||||||||||
Unaudited ($ in thousands, except share and per share data) | |||||||||||||||||||
1Q21 | 4Q20 | 3Q20 | 2Q20 | 1Q20 | |||||||||||||||
RETURN ON AVERAGE ASSETS: | |||||||||||||||||||
Net income/(loss) attributable to the Company (GAAP) (A) | $ | 10,652 | $ | 24,971 | $ | 22,680 | $ | (3,298) | $ | 800 | |||||||||
Average assets (non-GAAP) (B) | 10,280,425 | 9,896,691 | 9,346,563 | 9,109,201 | 8,779,391 | ||||||||||||||
Return on average assets (annualized) (non-GAAP) (A/B) | 0.42 % | 1.00% | 0.96% | (0.15)% | 0.04% | ||||||||||||||
EFFICIENCY RATIO: | |||||||||||||||||||
Total noninterest expense (GAAP) (A) | $ | 75,923 | $ | 57,967 | $ | 60,937 | $ | 61,453 | $ | 60,908 | |||||||||
LESS: Amortization of intangibles | 667 | 566 | 714 | 702 | 715 | ||||||||||||||
Total noninterest expense, excluding Amortization of intangibles (non-GAAP) (B) | $ | 75,256 | $ | 57,401 | $ | 60,223 | $ | 60,751 | $ | 60,193 | |||||||||
Net interest income (GAAP) | $ | 59,477 | $ | 59,407 | $ | 57,824 | $ | 58,938 | $ | 57,257 | |||||||||
Total core fees and income (GAAP) | 22,783 | 25,211 | 21,959 | 21,630 | 22,886 | ||||||||||||||
Total other income (GAAP) | 3,387 | 1,445 | 1,086 | 1,032 | (1,365) | ||||||||||||||
Total revenue (GAAP) (C) | $ | 85,647 | $ | 86,063 | $ | 80,869 | $ | 81,600 | $ | 78,778 | |||||||||
Efficiency ratio (GAAP) (A/C) | 88.6 % | 67.4% | 75.4% | 75.3% | 77.3% | ||||||||||||||
Efficiency ratio, excluding Amortization of intangibles (non-GAAP) (B/C) | 87.9 % | 66.7% | 74.5% | 74.4% | 76.4% | ||||||||||||||
NET INCOME/(LOSS) ATTRIBUTABLE TO THE COMPANY: | |||||||||||||||||||
Net income/(loss) attributable to the Company (GAAP) | $ | 10,652 | $ | 24,971 | $ | 22,680 | $ | (3,298) | $ | 800 | |||||||||
LESS: Gain on fair value of contingent considerations receivable 15 | — | — | 891 | — | — | ||||||||||||||
Tax effect at statutory rate | — | — | 258 | — | — | ||||||||||||||
Net income/(loss) attributable to the Company (non-GAAP) | $ | 10,652 | $ | 24,971 | $ | 22,047 | $ | (3,298) | $ | 800 | |||||||||
NET INCOME/(LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS: | |||||||||||||||||||
Net income/(loss) attributable to common shareholders (GAAP) | $ | 10,652 | $ | 24,971 | $ | 22,680 | $ | (3,298) | $ | 1,214 | |||||||||
LESS: Gain on fair value of contingent considerations receivable 15 | — | — | 891 | — | — | ||||||||||||||
Tax effect at statutory rate | — | — | 258 | — | — | ||||||||||||||
Net income/(loss) attributable to the common shareholders, treasury stock method, excluding notable items (non-GAAP) | $ | 10,652 | $ | 24,971 | $ | 22,047 | $ | (3,298) | $ | 1,214 | |||||||||
Weighted average diluted shares outstanding | 83,934,107 | 82,764,339 | 82,362,338 | 81,929,752 | 83,318,041 | ||||||||||||||
Diluted earnings/(loss) per share (GAAP) | $ | 0.13 | $ | 0.30 | $ | 0.28 | $ | (0.04) | $ | 0.01 | |||||||||
Diluted earnings/(loss) per share, excluding notable items (non-GAAP) | $ | 0.13 | $ | 0.30 | $ | 0.27 | $ | (0.04) | $ | 0.01 | |||||||||
Average common equity (non-GAAP) | $ | 879,441 | $ | 861,138 | $ | 842,606 | $ | 834,882 | $ | 838,935 | |||||||||
Average tangible common equity (non-GAAP) | $ | 813,090 | $ | 794,885 | $ | 776,360 | $ | 768,005 | $ | 771,349 | |||||||||
ROACE, excluding notable items (non-GAAP) | 4.91 % | 11.50% | 10.38% | (1.58)% | 0.39% | ||||||||||||||
ROATCE, excluding notable items (non-GAAP) | 5.58 % | 12.69% | 11.55% | (1.43)% | 0.72% | ||||||||||||||
Pre-tax, pre-provision income (non-GAAP) | $ | 9,724 | $ | 28,096 | $ | 19,932 | $ | 20,147 | $ | 17,870 | |||||||||
LESS: Gain on fair value of contingent considerations receivable 15 | — | — | 891 | — | — | ||||||||||||||
Pre-tax, pre-provision income, excluding notable items (non-GAAP) | $ | 9,724 | $ | 28,096 | $ | 19,041 | $ | 20,147 | $ | 17,870 | |||||||||
15 In the third quarter of 2020, there was a gain of $0.9 million related to the revaluation of a receivable from the divestiture of a former affiliate, Bingham, Osborn & Scarborough, LLC ("BOS"). | |||||||||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20210422006045/en/
Contacts:
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abromley@bostonprivate.com
