Investor Relations

Press Release

Boston Private Financial Holdings, Inc. Reports Third Quarter 2017 Results

Company Release - 10/18/2017 4:05 PM ET

Third Quarter Highlights:

  • Total Revenue increased 8% year-over-year driven by a 14% increase in Net Interest Income and a 3% increase in Total Core Fees and Income.
  • Average Total Deposits increased 8% year-over-year to $6.4 billion, and Average Total Loans increased 10% year-over-year to $6.4 billion.
  • Total Assets Under Management/Advisory (“AUM”) increased 8% year-over-year to $29.8 billion.
  • Annualized Return on Average Common Equity for the quarter was 9.9% and annualized Return on Average Tangible Common Equity for the quarter was 13.2%.

BOSTON--(BUSINESS WIRE)-- Boston Private Financial Holdings, Inc. (NASDAQ: BPFH) (the “Company” or “BPFH”) today reported third quarter 2017 GAAP Net Income Attributable to the Company of $19.8 million, compared to $23.4 million for the second quarter of 2017 and $19.6 million for the third quarter of 2016. Third quarter 2017 diluted earnings per share were $0.22, compared to $0.27 in the second quarter of 2017, and $0.22 in the third quarter of 2016.

“Our Company demonstrated good underlying business performance during the third quarter,” said Clayton G. Deutsch, CEO. “Our Private Bank delivered strong year-over-year revenue growth driven by double-digit net interest income growth and core Net Interest Margin expansion. Our Wealth Management & Trust segment recorded a fourth consecutive quarter of improvement in net flows and a second consecutive quarter of positive EBITDA, while our Wealth Advisory and Investment Management segments delivered sequential earnings improvement and margins above our targets.”

Core Fees and Income/Assets Under Management

Total Core Fees and Income for the third quarter were $39.1 million, a 5% increase on a linked quarter basis and a 3% increase year-over-year. The increase reflects higher levels of AUM in the Wealth Management & Trust, Investment Management, and Wealth Advisory segments on both a linked quarter basis and year-over-year basis. Private Banking fees increased linked quarter, while decreasing year-over-year due to changes in swap fee income.

AUM was $29.8 billion at the end of the third quarter, an increase of 2% from the previous quarter and 8% year-over-year. AUM increased due to positive market action, partially offset by negative net flows. The Company experienced net flows of negative $109 million during the third quarter, compared to negative $180 million and negative $336 million in the second quarter of 2017 and third quarter of 2016, respectively. During the third quarter, net flows by segment were $114 million for Wealth Management & Trust, negative $152 million for Investment Management, and negative $71 million for Wealth Advisory.

Net Interest Income

Net Interest Income for the third quarter was $56.6 million, a decrease of 1% from $57.1 million for the second quarter of 2017 and an increase of 14% from $49.9 million for the third quarter of 2016. The current quarter includes $0.1 million of interest recovered on previous nonaccrual loans compared to $2.0 million for the second quarter and $0.3 million for the third quarter of 2016. Excluding interest recovered on previous nonaccrual loans, Net Interest Income on an FTE basis increased 2% linked quarter and 14% year-over-year.

Net Interest Margin was 3.02% for the third quarter of 2017, a decrease of 5 basis points from the second quarter of 2017 and an increase of 14 basis points from the third quarter of 2016. Excluding interest recovered on previous nonaccrual loans, Net Interest Margin for the third quarter was 3.02%, an increase of 5 basis points from the second quarter of 2017 and an increase of 16 basis points from the third quarter of 2016.

Total Operating Expense

Total Operating Expense for the third quarter of 2017 was $69.3 million, up 2% linked quarter from $67.8 million and 12% year-over-year primarily due to increased compensation expense and technology initiatives.

Provision and Asset Quality

The Company recorded a provision credit of $0.4 million for the third quarter of 2017, compared to a provision credit of $6.1 million for the second quarter of 2017 and $0.1 million for the third quarter of 2016. The provision credit in the third quarter of 2017 was due to net recoveries and improved loss factors, partially offset by an increase in Criticized Loans and loan growth.

Criticized Loans as of September 30, 2017 were $146.0 million, an increase of 13% linked quarter and a decrease of 8% year-over-year. Nonaccrual Loans (“Nonaccruals”) as of September 30, 2017 were $13.6 million, a decrease of 16% linked quarter and 17% year-over-year. As a percentage of Total Loans, Nonaccruals were 21 basis points as of September 30, 2017, down 5 basis points compared to June 30, 2017, and down 7 basis points from September 30, 2016.

Additional credit metrics are listed below:

(In millions)     September 30,
2017
    June 30,
2017
    March 31,
2017
    December 31,
2016
    September 30,
2016
Total Criticized Loans $ 146.0 $ 129.5 $ 135.1 $ 118.5     $ 158.8
Total Loans 30-89 Days Past Due and Accruing (13) $ 5.3 $ 3.2 $ 28.7 $ 15.1 $ 4.6
Total Net Loans (Charged-off)/ Recovered $ 0.3 $ 3.1 $ 0.1 $ 1.5 $ 2.1
Allowance for Loan Losses/

Total Loans

1.17 % 1.19 % 1.25 % 1.28 % 1.32 %
 

Capital Ratios

The Company's capital ratios are listed below:

    September 30,
2017
    June 30,
2017
    March 31,
2017
    December 31,
2016
    September 30,
2016
BPFH Ratios:    
Total Risk-Based Capital * 14.3 % 14.1 % 13.8 % 13.9 % 14.0 %
Tier I Risk-Based Capital * 13.0 % 12.9 % 12.6 % 12.6 % 12.7 %
Tier I Leverage Capital * 9.4 % 9.3 % 9.2 % 9.4 % 9.5 %
TCE/TA (4) 7.4 % 7.4 % 7.0 % 7.1 % 7.4 %
Tier I Common Equity/

Risk Weighted Assets *

10.4 % 10.3 % 10.0 % 10.0 % 10.0 %

*September 30, 2017 information is presented based on estimated data.

Dividend Payments
Concurrent with the release of third quarter 2017 earnings, the Board of Directors of the Company declared a cash dividend to common shareholders of $0.11 per share. The record date for this dividend is November 3, 2017, and the payment date is November 17, 2017.

The Board of Directors of the Company also declared a cash dividend to holders of the Non-Cumulative Perpetual Preferred Stock, Series D of $17.375 per share, which will result in a dividend of $0.434375 per depositary share. The record date for this dividend is November 15, 2017, and the payment date is December 15, 2017.

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 tangible book value per share; the TCE/TA ratio; return on average common equity; return on average tangible common equity; pre-tax, pre-provision income; total operating expense excluding intangibles, goodwill impairment, and restructuring; the efficiency ratio (FTE basis); the efficiency ratio (FTE basis) excluding amortization of intangibles, goodwill impairment, and restructuring; net income attributable to the Company excluding notable items; diluted earnings per share excluding notable items; and net interest income and net interest margin excluding interest recovered on previous nonaccrual loans, also referred to as core net interest margin.

A detailed reconciliation table of the Company's GAAP to non-GAAP measures is attached.

Conference Call
Management will hold a conference call at 8 a.m. Eastern Time on Thursday, October 19, 2017, to discuss the financial results, business highlights and outlook. To access the call:

Dial In #: (888) 317-6003
Elite Entry Number: 5396726

Replay Information:
Available from October 19, 2017 at 12 noon until October 26, 2017
Dial In #: (877) 344-7529
Conference Number: 10112880

The call will be simultaneously webcast and may be accessed on www.bostonprivate.com.

Boston Private Financial Holdings, Inc.
Boston Private Financial Holdings, Inc. is a national financial services organization that owns Wealth Management, Trust, and Private Banking affiliates with offices in Boston, New York, Los Angeles, San Francisco, San Jose, Florida, and Wisconsin. The Company has total assets of approximately $8 billion, and manages over $29 billion of client assets.

The Company's affiliates serve the high net worth marketplace with high quality products and services of unique appeal to private clients. The Company also provides strategic oversight and access to resources, both financial and intellectual, to support affiliate management, marketing, compliance and legal activities. (NASDAQ: BPFH)

For more information about BPFH, visit the Company's website at www.bostonprivate.com.

Forward-Looking Statements
Certain statements in this press release that are not historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties. These statements include, among others, statements regarding our strategy, evaluations of future interest rate trends and liquidity, prospects for growth in assets, and prospects for overall results over the long term. You should not place undue reliance on our forward-looking statements. You should exercise caution in interpreting and relying on forward-looking statements because they are subject to significant risks, uncertainties and other factors which are, in some cases, beyond the Company's control. Forward-looking statements are based on the current assumptions and beliefs of management and are only expectations of future results. The Company's actual results could differ materially from those projected in the forward-looking statements as a result of, among other factors, adverse conditions in the capital and debt markets and the impact of such conditions on the Company's private banking, investment management, wealth advisory, and trust 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.

Note to Editors:
Boston Private Financial Holdings, Inc. is not to be confused with Boston Private Bank & Trust Company. Boston Private Bank & Trust Company is a wholly-owned subsidiary of BPFH. The information reported in this press release is related to the performance and results of BPFH.

                   

Boston Private Financial Holdings, Inc.

Selected Financial Data (Unaudited)

 
September 30,
2017
June 30,
2017
March 31,
2017
December 31,
2016
September 30,
2016
(In thousands, except share and per share data)
Assets:
Cash and cash equivalents $ 110,440 $ 97,032 $ 165,186 $ 106,557 $ 67,631
Investment securities available-for-sale 1,189,827 1,188,720 1,256,208 1,264,132 1,249,578
Investment securities held-to-maturity 84,090 99,024 98,424 93,079 98,881
Stock in Federal Home Loan Bank and Federal Reserve Bank 61,714 45,568 50,133 44,077 36,084
Loans held for sale 1,957 2,870 350 3,464 5,316
Total loans 6,413,201 6,279,928 6,250,217 6,114,354 5,869,498
Less: Allowance for loan losses 74,873   75,009   78,031   78,077   77,669
Net loans 6,338,328 6,204,919 6,172,186 6,036,277 5,791,829
Other real estate owned (“OREO”) 1,690 1,800
Premises and equipment, net 36,546 34,135 32,974 31,827 32,089
Goodwill 142,554 142,554 142,554 142,554 152,082
Intangible assets, net 22,447 23,873 25,299 26,725 28,267
Fees receivable 12,560 12,639 12,230 13,400 11,185
Accrued interest receivable 21,823 20,680 20,790 20,479 18,062
Deferred income taxes, net 46,088 49,827 53,686 55,460 39,319
Other assets 201,024   185,805   185,100   130,753   149,427
Total assets $ 8,269,398   $ 8,107,646   $ 8,215,120   $ 7,970,474   $ 7,681,550
Liabilities:
Deposits $ 6,262,347 $ 6,381,339 $ 6,246,620 $ 6,085,146 $ 5,812,243
Deposits held for sale 105,788
Securities sold under agreements to repurchase 59,903 29,232 67,249 59,624 77,466
Federal funds purchased 70,000 40,000 80,000 125,000
Federal Home Loan Bank borrowings 812,773 618,989 885,445 734,205 522,681
Junior subordinated debentures 106,363 106,363 106,363 106,363 106,363
Other liabilities 127,069   115,088   110,310   119,683   134,322
Total liabilities 7,438,455   7,291,011   7,415,987   7,185,021   6,883,863
Redeemable Noncontrolling Interests (“RNCI”) 15,882 17,216 17,232 16,972 16,199
Shareholders’ Equity:
Preferred stock, $1.00 par value; authorized: 2,000,000 shares 47,753 47,753 47,753 47,753 47,753
Common stock, $1.00 par value; authorized: 170,000,000 shares 84,082 84,015 84,134 83,732 83,195
Additional paid-in capital 606,802 602,507 602,748 597,454 597,209
Retained earnings 76,455 66,807 53,510 47,929 39,415
Accumulated other comprehensive income/ (loss) (4,823 ) (6,038 ) (10,237 ) (12,548 ) 10,134
Total Company’s shareholders’ equity 810,269   795,044   777,908   764,320   777,706
Noncontrolling interests 4,792   4,375   3,993   4,161   3,782
Total shareholders’ equity 815,061   799,419   781,901   768,481   781,488
Total liabilities, redeemable noncontrolling interests and shareholders’ equity $ 8,269,398   $ 8,107,646   $ 8,215,120   $ 7,970,474   $ 7,681,550
 
   

Boston Private Financial Holdings, Inc.

Selected Financial Data (Unaudited)

 
Three Months Ended
September 30,
2017
    June 30,
2017
    March 31,
2017
    December 31,
2016
    September 30,
2016
Interest and dividend income: (In thousands, except share and per share data)
Loans $ 58,096 $ 57,736 $ 53,636 $ 51,499 $ 50,074
Taxable investment securities 1,569 1,592 1,670 1,592 1,537
Non-taxable investment securities 1,664 1,655 1,606 1,520 1,444
Mortgage-backed securities 3,267 3,495 3,504 3,290 3,079
Federal funds sold and other 916   831   600   508   469  
Total interest and dividend income 65,512   65,309   61,016   58,409   56,603  
Interest expense:
Deposits 5,356 4,949 4,531 4,152 4,163
Federal Home Loan Bank borrowings 2,657 2,489 2,111 1,987 1,929
Junior subordinated debentures 761 716 671 674 591
Repurchase agreements and other short-term borrowings 111   10   61   77   49  
Total interest expense 8,885   8,164   7,374   6,890   6,732  
Net interest income 56,627 57,145 53,642 51,519 49,871
Provision/ (credit) for loan losses (432 ) (6,114 ) (181 ) (1,128 ) (138 )
Net interest income after provision/ (credit) for loan losses 57,059   63,259   53,823   52,647   50,009  
Fees and other income:
Investment management fees 11,274 11,081 10,839 12,408 10,717
Wealth advisory fees 13,279 12,961 12,823 12,568 12,750
Wealth management and trust fees 11,619 11,161 10,826 11,031 10,826
Other banking fee income 2,726 1,964 1,694 2,387 3,447
Gain on sale of loans, net 169   59   138   105   156  
Total core fees and income 39,067   37,226   36,320   38,499   37,896  
Gain/ (loss) on sale of investments, net 230 237 19 2 273
Gain/ (loss) on OREO, net (46 ) (110 ) 137
Gain on sale of offices 2,862
Other 970   555   213   2,705   1,706  
Total other income 1,200   792   186   5,459   2,116  
Total revenue 96,894 95,163 90,148 95,477 89,883
Operating expense:
Salaries and employee benefits 45,168 43,493 45,825 39,669 40,924
Occupancy and equipment 11,283 10,779 10,649 10,039 9,521
Professional services 3,308 3,106 3,314 2,756 2,290
Marketing and business development 2,216 1,971 1,660 2,022 1,623
Contract services and data processing 1,608 1,641 1,580 1,743 1,865
Amortization of intangibles 1,426 1,426 1,426 1,542 1,568
Impairment of goodwill 9,528
FDIC insurance 647 879 766 727 722
Restructuring
Other 3,690   4,526   3,560   3,817   3,157  
Total operating expense 69,346   67,821   68,780   71,843   61,670  
Income before income taxes 27,980 33,456 21,549 24,762 28,351
Income tax expense 8,289   9,963   6,553   7,247   8,652  
Net income from continuing operations 19,691 23,493 14,996 17,515 19,699
Net income from discontinued operations (1) 1,186   1,063   1,632   1,184   1,047  
Net income before attribution to noncontrolling interests 20,877 24,556 16,628 18,699 20,746
Less: Net income attributable to noncontrolling interests 1,074   1,150   966   1,147   1,110  
Net income attributable to the Company $ 19,803   $ 23,406   $ 15,662   $ 17,552   $ 19,636  
 
   

Boston Private Financial Holdings, Inc.

Selected Financial Data (Unaudited)

 
Nine Months Ended
September 30,
2017
    September 30,
2016
Interest and dividend income: (In thousands, except share and per share data)
Loans $ 169,468 $ 149,851
Taxable investment securities 4,831 4,638
Non-taxable investment securities 4,925 4,234
Mortgage-backed securities 10,266 9,126
Federal funds sold and other 2,347   1,381  
Total interest and dividend income 191,837   169,230  
Interest expense:
Deposits 14,836 12,420
Federal Home Loan Bank borrowings 7,257 6,021
Junior subordinated debentures 2,148 1,753
Repurchase agreements and other short-term borrowings 182   117  
Total interest expense 24,423   20,311  
Net interest income 167,414 148,919
Provision/ (credit) for loan losses (6,727 ) (5,806 )
Net interest income after provision/ (credit) for loan losses 174,141   154,725  
Fees and other income:
Investment management fees 33,194 32,002
Wealth advisory fees 39,063 38,013
Wealth management and trust fees 33,606 32,950
Other banking fee income 6,384 9,662
Gain on sale of loans, net 366   562  
Total core fees and income 112,613   113,189  
Gain/ (loss) on sale of investments, net 486 519
Gain/ (loss) on OREO, net (46 ) 417
Other 1,738   704  
Total other income 2,178   1,640  
Total revenue 282,205 263,748
Operating expense:
Salaries and employee benefits 134,486 124,098
Occupancy and equipment 32,711 29,036
Professional services 9,728 8,820
Marketing and business development 5,847 5,604
Contract services and data processing 4,829 5,281
Amortization of intangibles 4,278 4,740
FDIC insurance 2,292 2,757
Restructuring 2,017
Other 11,776   10,757  
Total operating expense 205,947   193,110  
Income before income taxes 82,985 76,444
Income tax expense 24,805   23,716  
Net income from continuing operations 58,180 52,728
Net income from discontinued operations (1) 3,881   4,357  
Net income before attribution to noncontrolling interests 62,061 57,085
Less: Net income attributable to noncontrolling interests 3,190   3,010  
Net income attributable to the Company $ 58,871   $ 54,075  
 
   

Boston Private Financial Holdings, Inc.

Selected Financial Data (Unaudited)

 
Three Months Ended
PER SHARE DATA: September 30,
2017
    June 30,
2017
    March 31,
2017
    December 31,
2016
    September 30,
2016
(In thousands, except share and per share data)
Calculation of Income for EPS:
Net income attributable to the Company $ 19,803 $ 23,406 $ 15,662 $ 17,552 $ 19,636

Adjustments to Net Income Attributable to the Company to arrive at Net Income Attributable to Common Shareholders, treasury stock method (2)

(1,146 ) (577 ) (1,166 ) (1,798 ) (1,006 )
Net Income Attributable to the Common Shareholders, treasury stock method $ 18,657   $ 22,829   $ 14,496   $ 15,755   $ 18,630  
 
End of Period Common Shares Outstanding 84,082,250 84,015,141 84,134,104 83,731,769 83,194,714
 
Weighted Average Shares Outstanding:
Weighted average basic shares outstanding 82,556,225 82,298,493 81,951,179 81,217,391 81,301,499
Weighted average diluted shares outstanding (3) 84,888,311 84,741,680 84,560,918 83,438,137 83,562,283
 
Diluted Total Earnings per Share $ 0.22 $ 0.27 $ 0.17 $ 0.19 $ 0.22
 
   
Nine Months Ended
PER SHARE DATA: September 30,
2017
    September 30,
2016
(In thousands, except share

and per share data)

Calculation of Income for EPS:
Net income attributable to the Company $ 58,871 $ 54,075

Adjustments to Net Income Attributable to the Company to arrive at Net Income Attributable to Common Shareholders, treasury stock method (2)

(2,889 ) (2,265 )
Net Income Attributable to the Common Shareholders, treasury stock method $ 55,982   $ 51,810  
 
Weighted Average Shares Outstanding:
Weighted average basic shares outstanding 82,270,849 81,280,014
Weighted average diluted shares outstanding (3) 84,741,172 83,430,480
 
Diluted Total Earnings per Share $ 0.66 $ 0.62
 
                   

Boston Private Financial Holdings, Inc.

Selected Financial Data (Unaudited)

 
(In thousands, except per share data) September 30,
2017
June 30,
2017
March 31,
2017
December 31,
2016
September 30,
2016
FINANCIAL DATA:
Book Value Per Common Share $ 9.13 $ 8.95 $ 8.73 $ 8.61 $ 8.82
Tangible Book Value Per Share (4) $ 7.16 $ 6.97 $ 6.73 $ 6.59 $ 6.65
Market Price Per Share $ 16.55 $ 15.35 $ 16.40 $ 16.55 $ 12.83
 
ASSETS UNDER MANAGEMENT AND ADVISORY:
Wealth Management and Trust $ 7,703,000 $ 7,429,000 $ 7,260,000 $ 7,008,000 $ 7,334,000
Investment Managers 11,083,000 10,901,000 10,907,000 10,571,000 10,176,000
Wealth Advisory 10,992,000 10,744,000 10,579,000 9,989,000 10,028,000
Less: Inter-company Relationship (11,000 ) (11,000 ) (11,000 ) (11,000 ) (11,000 )
Total Assets Under Management and Advisory $ 29,767,000   $ 29,063,000   $ 28,735,000   $ 27,557,000   $ 27,527,000  
 
FINANCIAL RATIOS:
Total Equity/ Total Assets 9.86 % 9.86 % 9.52 % 9.64 % 10.17 %
Tangible Common Equity/ Tangible Assets (4) 7.43 % 7.37 % 7.04 % 7.07 % 7.38 %
Tier I Common Equity/ Risk Weighted Assets (4) 10.42 % 10.28 % 9.97 % 10.00 % 10.02 %
Allowance for Loan Losses/ Total Loans 1.17 % 1.19 % 1.25 % 1.28 % 1.32 %
Allowance for Loan Losses/ Nonaccrual Loans 550 % 464 % 373 % 451 % 471 %
Return on Average Assets - Three Months Ended (Annualized) 0.96 % 1.15 % 0.79 % 0.89 % 1.03 %
Return on Average Common Equity - Three Months Ended (Annualized) (5) 9.87 % 12.12 % 8.26 % 9.07 % 10.20 %
Return on Average Tangible Common Equity - Three Months Ended (Annualized) (5) 13.24 % 16.27 % 11.43 % 12.75 % 14.30 %
Efficiency Ratio - Three Months Ended (6) 68.06 % 67.69 % 72.45 % 61.87 % 65.04 %
 
DEPOSIT DETAIL:
Demand deposits (noninterest-bearing) $ 1,850,833 $ 1,935,622 $ 1,772,854 $ 1,753,648 $ 1,770,631
NOW 636,013 631,973 620,280 578,657 557,482
Savings 74,333 69,892 74,293 74,162 73,480
Money market 3,009,779 3,055,642 3,176,472 3,102,048 2,879,952
Certificates of deposit 691,389   688,210   602,721   576,631   530,698  
Total Deposits $ 6,262,347   $ 6,381,339   $ 6,246,620   $ 6,085,146   $ 5,812,243  
 
           

Boston Private Financial Holdings, Inc.

Selected Financial Data (Unaudited)

 
Average Balance Interest Income/Expense Average Yield/Rate
(In thousands) Three Months Ended Three Months Ended Three Months Ended
AVERAGE BALANCE SHEET: 09/30/17     06/30/17     09/30/16 09/30/17     06/30/17     09/30/16 09/30/17     06/30/17     09/30/16
AVERAGE ASSETS                        
Interest-Earning Assets:
Cash and Investments:
Taxable investment securities $ 353,374 $ 363,166 $ 372,852 $ 1,569 $ 1,592 $ 1,537 1.77 % 1.75 % 1.65 %
Non-taxable investment securities (9) 295,727 294,836 271,864 2,559 2,546 2,221 3.46 % 3.45 % 3.27 %
Mortgage-backed securities 631,052 653,201 629,748 3,267 3,495 3,079 2.07 % 2.14 % 1.96 %
Federal funds sold and other 146,285   199,230   152,892   916   831   469   2.47 % 1.66 % 1.20 %
Total Cash and Investments 1,426,438   1,510,433   1,427,356   8,311   8,464   7,306   2.33 % 2.24 % 2.05 %
Loans (10):
Commercial and Industrial (9) 994,388 987,144 1,065,787 10,001 9,773 10,626 3.94 % 3.92 % 3.90 %
Commercial Real Estate (9) 2,381,583 2,358,409 1,976,327 25,579 26,433 19,860 4.20 % 4.43 % 3.93 %
Construction and Land 113,562 119,366 117,183 1,415 1,377 1,263 4.88 % 4.56 % 4.22 %
Residential 2,567,044 2,489,072 2,300,392 20,423 19,574 17,812 3.18 % 3.15 % 3.10 %
Home Equity 106,744 109,942 122,505 1,128 1,085 1,105 4.19 % 3.96 % 3.59 %
Other Consumer 187,184   195,384   182,315   1,554   1,526   1,154   3.29 % 3.13 % 2.52 %
Total Loans 6,350,505   6,259,317   5,764,509   60,100   59,768   51,820   3.73 % 3.79 % 3.55 %
Total Earning Assets 7,776,943   7,769,750   7,191,865   68,411   68,232   59,126   3.48 % 3.49 % 3.25 %
LESS: Allowance for Loan Losses 75,166 80,614 76,424
Cash and due From Banks (Non-Interest Bearing) 42,031 42,166 39,301
Other Assets 455,820   450,703   445,517  
TOTAL AVERAGE ASSETS $ 8,199,628   $ 8,182,005   $ 7,600,259  
AVERAGE LIABILITIES, RNCI, AND SHAREHOLDERS' EQUITY
Interest-Bearing Liabilities:
Interest-Bearing Deposits (10):
NOW $ 630,282 $ 640,378 $ 551,085 $ 189 $ 172 $ 120 0.12 % 0.11 % 0.09 %
Savings 71,900 71,505 76,999 16 15 25 0.09 % 0.08 % 0.13 %
Money Market 3,065,059 3,173,768 2,922,687 3,436 3,244 2,877 0.44 % 0.41 % 0.39 %
Certificates of Deposit 671,992   665,668   560,546   1,715   1,518   1,141   1.01 % 0.91 % 0.81 %
Total Interest-Bearing Deposits (14) 4,439,233 4,551,319 4,111,317 5,356 4,949 4,163 0.48 % 0.44 % 0.40 %
Junior Subordinated Debentures 106,363 106,363 106,363 761 716 591 2.80 % 2.67 % 2.17 %
FHLB Borrowings and Other 736,035   703,149   624,528   2,768   2,499   1,978   1.47 % 1.41 % 1.24 %
Total Interest-Bearing Liabilities 5,281,631   5,360,831   4,842,208   8,885   8,164   6,732   0.66 % 0.61 % 0.55 %
Non-interest Bearing Demand

Deposits (10) (14)

1,966,479 1,899,916 1,824,548
Payables and Other Liabilities 121,288   106,657   135,901  
Total Average Liabilities 7,369,398 7,367,404 6,802,657
Redeemable Noncontrolling Interests 21,634 21,075 19,504
Average Shareholders' Equity 808,596   793,526   778,098  
TOTAL AVERAGE LIABILITIES, RNCI, AND SHAREHOLDERS' EQUITY $ 8,199,628   $ 8,182,005   $ 7,600,259  
Net Interest Income - on a Fully Taxable Equivalent Basis (FTE) $ 59,526 $ 60,068 $ 52,394
LESS: FTE Adjustment (9) 2,899   2,923   2,523  
Net Interest Income (GAAP Basis) $ 56,627   $ 57,145   $ 49,871  
Interest Rate Spread 2.82 % 2.88 % 2.70 %
Bank only Net Interest Margin 3.07 % 3.12 % 2.92 %
Net Interest Margin 3.02 % 3.07 % 2.88 %
           

Boston Private Financial Holdings, Inc.

Selected Financial Data (Unaudited)

 
Average Balance Interest Income/Expense Average Yield/Rate
(In thousands) Nine Months Ended Nine Months Ended Nine Months Ended
AVERAGE BALANCE SHEET: 09/30/17     09/30/16 09/30/17     09/30/16 09/30/17     09/30/16
AVERAGE ASSETS            
Interest-Earning Assets:
Cash and Investments:
Taxable investment securities $ 369,929 $ 373,273 $ 4,831 $ 4,638 1.74 % 1.66 %
Non-taxable investment securities (9) 295,195 265,280 7,576 6,512 3.42 % 3.27 %
Mortgage-backed securities 652,159 594,461 10,266 9,126 2.10 % 2.05 %
Federal funds sold and other 169,114   160,114   2,347   1,381   1.55 % 1.14 %
Total Cash and Investments 1,486,397   1,393,128   25,020   21,657   2.21 % 2.07 %
Loans (10):
Commercial and Industrial (9) 988,449 1,072,051 29,077 32,358 3.88 % 3.97 %
Commercial Real Estate (9)