Investor Relations

Press Release

Boston Private Financial Holdings, Inc. Reports Second Quarter 2019 Results

Company Release - 7/24/2019 4:15 PM ET

Second Quarter 2019 Highlights include:

  • GAAP Net income was $19.4 million, or $0.22 per diluted share
  • Return on average common equity was 9.8%
  • Return on average tangible common equity was 11.1%
  • Average total loans were $7.0 billion, a 5% increase year-over-year
  • Average total deposits were $6.6 billion, a 4% increase year-over-year
  • Total assets under management/advisory (“AUM”) were $16.2 billion, a decrease of 4% year-over-year
  • Total net flows were negative $269 million, of which $127 million were attributable to the Wealth Management & Trust segment and $142 million were attributable to Affiliate Partners

BOSTON--(BUSINESS WIRE)-- Boston Private Financial Holdings, Inc. (NASDAQ: BPFH) (the “Company” or “BPFH”) today reported second quarter 2019 GAAP Net income attributable to the Company of $19.4 million, compared to $19.4 million for the first quarter of 2019 and $6.4 million for the second quarter of 2018. Second quarter 2019 GAAP Diluted earnings per share were $0.22, compared to $0.25 in the first quarter of 2019 and $0.03 in the second quarter of 2018.

 

Summary Financial Results - Reported

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% Change

($ in millions, except for per share data)

 

2Q19

 

1Q19

 

2Q18

 

LQ

 

Y/Y

Net income

 

$19.4

 

$19.4

 

$6.4

 

%

 

nm

Diluted earnings per share

 

$0.22

 

$0.25

 

$0.03

 

(12

)%

 

nm

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Financial Measures:

 

 

 

 

 

 

 

 

 

 

Pre-tax, pre-provision income

 

$26.2

 

$23.0

 

$25.3

 

14

%

 

4

%

Return on average common equity (“ROACE”)

 

9.8%

 

10.3%

 

3.0%

 

 

 

 

Return on average tangible common equity (“ROATCE”)

 

11.1%

 

11.6%

 

3.9%

 

 

 

 

nm = not meaningful

 

 

 

 

 

 

 

 

 

 

The Company's reported financial results increased year-over-year primarily as a result of a $12.7 million income tax expense related to the divestiture of Anchor Capital Advisors LLC in the second 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 financial measures, see page 7. A full reconciliation of GAAP to non-GAAP results can be found in the footnotes beginning on page 17.

 

Summary Financial Results - Operating Basis (non-GAAP)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% Change

($ in millions, except for per share data)

 

2Q19

 

1Q191

 

2Q182

 

LQ

 

Y/Y

Net income

 

$19.4

 

$20.7

 

$19.5

 

(7

)%

 

(1

)%

Diluted earnings per share

 

$0.22

 

$0.27

 

$0.21

 

(17

)%

 

4

%

 

 

 

 

 

 

 

 

 

 

 

Pre-tax, pre-provision income

 

$26.2

 

$24.7

 

$25.7

 

6

%

 

2

%

Return on average common equity

 

9.8%

 

11.0%

 

10.1%

 

 

 

 

Return on average tangible common equity

 

11.1%

 

12.4%

 

12.2%

 

 

 

 

1 1Q19 results adjusted to exclude the net after-tax impact of $1.6 million restructuring expense
2 2Q18 results adjusted to exclude $12.7 million income tax expense related to the divestiture of Anchor and net after-tax impact of $0.4 million information services expense related to efficiency initiatives

"During the first half of 2019, we have been focused on beginning the process of implementing our strategic vision for growth," said Anthony DeChellis, CEO of Boston Private. "Our second quarter results reflect improvement in pre-tax, pre-provision profitability measures as we exercise expense discipline and realize the benefits from efficiency initiatives. Looking ahead, we will continue to improve our efficiency as we transition our company to achieve the growth objectives we discussed during our Investor Day."

Divested Affiliates

The Company completed the sale of Anchor Capital Advisors LLC ("Anchor") and Bingham, Osborn & Scarborough LLC ("BOS") (together, "the Divested Affiliates") during 2018. Financial results from the Divested Affiliates remain consolidated in the Company's financial results through the closing dates of the divestitures. The Anchor divestiture closing date was April 13, 2018, and the BOS divestiture closing date was December 3, 2018.

For presentation purposes, the Divested Affiliates' AUM are excluded from AUM amounts, but are included in the calculation of Core fees and income. The discussion below includes non-GAAP measures that exclude the contributions from these affiliates in order to enhance comparability of trends in the core business.

Net Interest Income and Margin

 

 

 

 

 

 

 

 

 

 

 

 

% Change

($ in millions)

 

2Q19

 

1Q19

 

2Q18

 

LQ

 

Y/Y

Net interest income

 

$57.5

 

 

$58.3

 

 

$57.5

 

 

(2

)%

 

%

Less: Interest recovered on previous nonaccrual loans

 

 

 

0.3

 

 

 

 

nm

 

nm

Core net interest income (non-GAAP)

 

$57.5

 

 

$58.1

 

 

$57.5

 

 

(1

)%

 

%

 

 

 

 

 

 

 

 

 

 

 

Net interest margin

 

2.78

%

 

2.90

%

 

2.85

%

 

 

 

 

Core net interest margin (non-GAAP)

 

2.78

%

 

2.89

%

 

2.85

%