Boston Private Financial Holdings, Inc. Reports Fourth Quarter and Year End 2015 Results; Raises Dividend to $0.10 Per Share
Fourth Quarter and Full Year Highlights:
Deposit and Loan Growth: Average Total Deposits increased 8% year-over-year to $5.9 billion. On a linked quarter basis, Average Total Deposits increased 3%, while Average Total Loans grew 8% year-over-year and 2% linked quarter. The Average Loan-to-Deposit ratio was 95% at the end of the fourth quarter, flat year-over-year.
Net Interest Income Growth: Net Interest Income increased 9% year-over-year and increased 4% linked quarter to $48.1 million.
Assets Under Management: Total Assets Under Management/Advisory (“AUM”) decreased 8% year-over-year to $27.6 billion, reflecting negative net flows and negative market action. On a linked quarter basis, AUM increased 1% due to positive market action partially offset by negative net flows.
Provision Credit: The Company recorded a provision credit of $1.7 million due to net recoveries of $0.9 million and a reduction in criticized and classified loans, offset by loan growth. Compared to a provision expense of $2.6 million for the third quarter of 2015.
Dividend Increase: The Board of Directors today approved a quarterly cash dividend of $0.10 per share, up from $0.09 per share. This marks the fifth quarterly cash dividend increase in the past three years.
Boston, MA - January 27, 2016 - Boston Private Financial Holdings, Inc. (NASDAQ: BPFH) (the “Company” or “BPFH”) today reported fourth quarter 2015 GAAP Net Income Attributable to the Company of $15.0 million, compared to $13.5 million for the third quarter of 2015. Fourth quarter 2015 diluted earnings per share were $0.17, compared to $0.16 in the third quarter of 2015 and $0.13 in the fourth quarter of 2014.
For the full year of 2015, BPFH reported GAAP Net Income Attributable to the Company of $64.9 million, compared to $68.8 for the full year of 2014. BPFH reported diluted earnings per share of $0.74 compared to $0.79 for the full years of 2015 and 2014, respectively.
“2015 was an uneven performance year for Boston Private,” said Clayton G. Deutsch, CEO. “The Private Bank continued to build franchise value and expand its client base across its footprint. However, our Wealth Management businesses came under pressure from sector-based headwinds and client withdrawals. Nevertheless, all of our wealth management businesses took steps to strengthen their positions. Despite near-term challenges, we enter 2016 confident that we have the right team and client offering in place to execute on our goal of being the premier Wealth Management and Private Banking company in our select markets nationally.”
Core Fees and Income
Core Fees and Income decreased 6% year-over-year and linked quarter to $37.1 million reflecting lower levels of AUM and lower Other Banking Fee Income. For the full year 2015, Core Fees and Income increased 13% to $157.1 million, largely due to the acquisition of Banyan Partners, which was completed on October 2, 2014.
AUM increased to $27.6 billion in the fourth quarter, up 1% from $27.4 billion in the third quarter of 2015, reflecting positive market action offset by negative net flows. AUM decreased 8% year-over-year due to negative net flows and negative market action. The Company experienced fourth quarter 2015 AUM net outflows of $543 million, as compared to net outflows of $751 million and $156 million in the third quarter of 2015 and fourth quarter of 2014, respectively. AUM net outflows for 2015 were $1.9 billion as compared to net outflows of $348 million in 2014.
The following information was filed by Boston Private Financial Holdings Inc (BPFH) on Wednesday, January 27, 2016 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.
View differences made from one year to another to evaluate Boston Private Financial Holdings Inc's financial trajectory
Compare this 10-K Annual Report to its predecessor by reading our highlights to see what text and tables were removed, and by Boston Private Financial Holdings Inc.
Ticker: BPFH CIK: 821127 Form Type:10-K Annual Report Accession Number: 0000821127-16-000158 Submitted to the SEC: Fri Feb 26 2016 4:24:49 PM EST Accepted by the SEC: Fri Feb 26 2016 Period: Thursday, December 31, 2015 Industry: State Commercial Banks