Boston Private Financial Holdings, Inc. Reports Second Quarter 2017 Results
Second Quarter Highlights:
Profitability Improvement: Net Income Attributable to the Company increased 43% year-over-year and 49% linked quarter to $23.4 million, while Return on Average Common Equity increased to 12.12% from 8.26% in the previous quarter.
Net Interest Income Growth: Net Interest Income increased 16% year-over-year and 7% linked quarter to $57.1 million, while the Net Interest Margin expanded to 3.07% from 2.94% in the previous quarter.
Deposit and Loan Growth: Average Total Deposits increased 13% year-over-year to $6.5 billion, and Average Total Loans increased 10% year-over-year to $6.3 billion.
Assets Under Management: Total Assets Under Management/Advisory (“AUM”) increased 7% year-over-year to $29.1 billion.
Provision Credit: The Company recorded a provision credit of $6.1 million during the second quarter.
Boston, MA - July 26, 2017 - Boston Private Financial Holdings, Inc. (NASDAQ: BPFH) (the “Company” or “BPFH”) today reported second quarter 2017 GAAP Net Income Attributable to the Company of $23.4 million, compared to $15.7 million for the first quarter of 2017 and $16.4 million for the second quarter of 2016. Second quarter 2017 diluted earnings per share were $0.27, compared to $0.17 in the first quarter of 2017, and $0.18 in the second quarter of 2016.
"Our Company delivered strong earnings during the second quarter," said Clayton G. Deutsch, CEO. "The Private Bank showed robust Net Interest Income growth as our balance sheet positioning, overall loan growth, and core deposit strength drove expansion of Net Interest Margin and Pre-Tax Pre-Provision Income, with recoveries also assisting earnings. At the same time, our Wealth Advisory and Investment Management segments demonstrated operating leverage translating into revenue growth and improved profitability."
"We are pleased with the AUM development, revenue build, and improving financial performance of our Boston Private Wealth business. We remain focused on increasing shareholder value by positioning all of our businesses for long-term success and attractive returns while maintaining strong credit quality and a favorable risk profile," he concluded.
Core Fees and Income/Assets Under Management
Core Fees and Income for the second quarter were $37.2 million, a 3% increase on a linked quarter basis and a 1% decline year-over-year. Core Fees and Income increased linked quarter with contributions from all business segments, while the year-over-year decrease was primarily due to lower swap fee income.
AUM was $29.1 billion at the end of the second quarter, an increase of 1% from the previous quarter and 7% year-over-year. The Company experienced net flows of negative $180 million during the second quarter, compared to $267 million and negative $199 million in the first quarter of 2017 and second quarter of 2016, respectively. During the second quarter, net flows by segment were $63 million for Wealth Management & Trust, negative $176 million for Investment Management, and negative $67 million for Wealth Advisory.
The following information was filed by Boston Private Financial Holdings Inc (BPFH) on Wednesday, July 26, 2017 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-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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Ticker: BPFH CIK: 821127 Form Type:10-Q Quarterly Report Accession Number: 0000821127-17-000062 Submitted to the SEC: Wed Aug 02 2017 4:16:05 PM EST Accepted by the SEC: Wed Aug 02 2017 Period: Friday, June 30, 2017 Industry: State Commercial Banks