Boston Private Financial Holdings, Inc. Reports Fourth Quarter and Year-End 2011 Results
Fourth Quarter and Year-End 2011 Highlights:
Continued profitability: Q4 2011 profitability of $0.15 per diluted share, following Q3 2011 diluted EPS of $0.14. Full year 2011 profitability of $0.46 per diluted share.
Increased loan growth: Total Loans increased 4% to $4.7 billion in the quarter, and also increased 4% for the year. Fourth quarter annualized growth rate of 16% reflects both a stronger pipeline and a reduction in West Coast Commercial Loan paydowns.
Continued asset quality improvement: Non-Performing Loans were down 7% in the quarter and down 35% for the year.
Boston, MA - January 26, 2012 - Boston Private Financial Holdings, Inc. (NASDAQ: BPFH) (the “Company” or “BPFH”) today reported fourth quarter 2011 GAAP Net Income Attributable to the Company of $13.1 million, compared to GAAP Net Income of $11.7 million in the third quarter of 2011. BPFH reported fourth quarter diluted earnings per share of $0.15 compared to diluted earnings per share of $0.14 in the third quarter of 2011.
For the full year of 2011, BPFH reported GAAP Net Income Attributable to the Company of $39.1 million, compared to a GAAP net loss of $11.0 million for the full year of 2010. BPFH reported diluted earnings per share of $0.46, compared to a $0.29 loss per share for 2010.
“Our fourth quarter results show continued progress with our plan to return the Company to sustainable and acceptable profitability,” said CEO and President Clayton G. Deutsch. “We continue to drive improvements in asset quality, and our overall restructuring program remains on track. As we have made headway with our restructuring program, we are increasingly focused on growth. Our recent fourth quarter loan growth trajectory in all of our markets is encouraging. ”
Revenue Down Slightly in Low Rate Environment
Net Interest Income in the fourth quarter was $44.1 million, down 2% from $45.1 million in the third quarter of 2011. For the full year of 2011, Net Interest Income was down 1% to $178.9 million. Fees and Other Income for the quarter decreased slightly to $31.2 million, from $31.4 million in the third quarter of 2011. For the full year of 2011, Fees and Other Income increased 12% to $125.0 million.
Net Interest Margin was 3.17% in the quarter, down eight basis points from the third quarter of 2011. For the full year of 2011, Net Interest Margin was 3.25%, down five basis points from the full year of 2010.
Total Assets Under Management/Advisory (“AUM”) increased to $19.1 billion in the fourth quarter, up 5% from $18.2 billion in the third quarter 2011. For the full year of 2011, AUM was down 2%. The Company experienced fourth quarter 2011 AUM net outflows of $140 million, as compared to $223 million of net outflows in the prior quarter. AUM net outflows for the year were $477 million.
Operating Expenses Increase in Q4
Operating Expenses (excluding restructuring costs of $0.7 million) in the fourth quarter were $58.8 million, up 6% from $55.4 million (excluding restructuring costs of $1.1 million) on a linked quarter basis. For the full year of 2011, Operating Expenses (excluding restructuring costs of $8.1 million) were down 2% to $232.1 million.
The following information was filed by Boston Private Financial Holdings Inc (BPFH) on Thursday, January 26, 2012 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.