Investor Relations

Press Release

Boston Private Reports Second Quarter 2020 Results

Company Release - 7/28/2020 4:15 PM ET

Second Quarter 2020 Highlights include:

  • Net loss of $(3.3) million, or $(0.04) per diluted share
  • Return on average common equity (non-GAAP) of (1.6)%
  • Return on average tangible common equity (non-GAAP) of (1.4)%
  • Average total deposits of $7.3 billion, a 10% increase year-over-year
  • Average total loans of $7.3 billion, a 4% increase year-over-year
  • Total assets under management/advisory (“AUM”) of $16.0 billion, a 2% decrease year-over-year
  • Total net flows of negative $40 million, with net inflows of $60 million in the Wealth Management and Trust segment
  • Total provision for credit losses of $25.4 million reflecting the deterioration of the macroeconomic outlook as a result of the COVID-19 pandemic
  • Funded $380 million of loans from the Small Business Administration's Paycheck Protection Program ("PPP"), resulting in $284 million of average loan balances during the quarter
  • Board of Directors declared a cash dividend of $0.06 per common share

 

BOSTON--(BUSINESS WIRE)-- Boston Private Financial Holdings, Inc. (NASDAQ: BPFH) (the “Company” or “BPFH”) today reported second quarter 2020 Net loss attributable to the Company of $(3.3) million, compared to Net income attributable to the Company of $0.8 million for the first quarter of 2020 and $19.4 million for the second quarter of 2019. Second quarter 2020 Diluted loss per share were $(0.04), compared to Diluted earnings per share of $0.01 in the first quarter of 2020 and $0.22 in the second quarter of 2019.

"I am proud of the way our employees continue to prioritize the health and financial well-being of our clients as we all navigated the challenging environment during the second quarter," said Anthony DeChellis, CEO of Boston Private. "This quarter's financial reflects continued reserve build related to the uncertain macroeconomic environment as a result of the pandemic. Our pre-tax, pre-provision income increased linked quarter, while our Wealth Management & Trust segment delivered net inflows for the second straight quarter.

"Our board declared a dividend of $0.06 per common share, compared to $0.12 in the prior quarter. This prudent action reflects our Company's conservative approach to liquidity and capital management as we adjust our dividend policy to reflect our current strategy."

Summary Financial Results - Reported

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% Change

($ in millions, except for per share data)

 

2Q20

 

1Q20

 

2Q19

 

LQ

 

Y/Y

Net income/(loss)

 

$(3.3)

 

$0.8

 

$19.4

 

nm

 

nm

Diluted earnings/(loss) per share

 

$(0.04)

 

$0.01

 

$0.22

 

nm

 

nm

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Financial Measures:

 

 

 

 

 

 

 

 

 

 

Pre-tax, pre-provision income

 

$20.1

 

$17.9

 

$26.2

 

13%

 

(23)%

Return on average common equity ("ROACE")

 

(1.6)%

 

0.4%

 

9.8%

 

 

 

 

Return on average tangible common equity ("ROATCE")

 

(1.4)%

 

0.7%

 

11.1%

 

 

 

 

nm = not meaningful

 

 

 

 

 

 

 

 

 

 

The Company's reported financial results decreased linked quarter and year-over-year primarily as a result of the total provision for credit losses of $25.4 million in the second quarter of 2020. Pre-tax, pre-provision income increased 13% linked quarter primarily driven by higher other income and net interest income, partially offset by higher noninterest expense.

Net Interest Income and Margin

 

 

 

 

 

 

 

 

 

 

 

 

% Change

($ in millions)

 

2Q20

 

1Q20

 

2Q19

 

LQ

 

Y/Y

Net interest income

 

$58.9

 

$57.3

 

$57.5

 

3

%

 

3

%