Boston Private Reports First Quarter 2020 Results
First Quarter 2020 Highlights include:
•Net income of $0.8 million, or $0.01 per diluted share
•Return on average common equity (non-GAAP) of 0.4%
•Return on average tangible common equity (non-GAAP) of 0.7%
•Average total deposits of $7.1 billion, a 5% increase year-over-year
•Average total loans of $7.0 billion, a 2% increase year-over-year
•Total assets under management/advisory (“AUM”) of $14.5 billion, a 10% decrease year-over-year
•Total net flows of $150 million, $176 million of which was attributable to the Wealth Management and Trust segment
•On January 1, 2020, the Company adopted the Current Expected Credit Loss ("CECL") accounting standard
•Provision for credit losses of $18.8 million ($0.16 per share after tax impact), which includes $17.0 million of provision for loan loss expense and $1.8 million of Other expense for unfunded loan commitments, reflecting the impact of the COVID-19 pandemic
•$12.8 million of shares repurchased, completing the remaining availability under the existing program
Boston, MA - April 29, 2020 - Boston Private Financial Holdings, Inc. (NASDAQ: BPFH) (the “Company” or “BPFH”) today reported first quarter 2020 Net income attributable to the Company of $0.8 million, compared to $21.2 million for the fourth quarter of 2019 and $19.4 million for the first quarter of 2019. First quarter 2020 Diluted earnings per share were $0.01, compared to $0.26 in the fourth quarter of 2019 and $0.25 in the first quarter of 2019.
“I am extremely proud of the commitment and dedication shown by the Boston Private employees throughout the COVID-19 pandemic,” said Anthony DeChellis, CEO of Boston Private. “Many of our employees have worked around the clock in difficult circumstances to deliver much needed capital and advice to our clients as we navigate this crisis together.
“This quarter’s results reflect the implementation of CECL and a reserve build related to the uncertain outlook of the pandemic’s impact on our economy. Before the reserve build, our Company demonstrated net interest income growth and expense discipline, while generating positive net flows in our Wealth Management & Trust business.”
|Summary Financial Results - Reported|
|($ in millions, except for per share data)||1Q20||4Q19||1Q19||LQ||Y/Y|
|Diluted earnings per share||$0.01||$0.26||$0.25||(96)||%||(96)||%|
|Non-GAAP Financial Measures:|
|Pre-tax, pre-provision income||$17.9||$24.5||$23.0||(27)||%||(22)||%|
|Return on average common equity ("ROACE")||0.4 ||%||10.3 ||%||10.3 ||%|
|Return on average tangible common equity ("ROATCE")||0.7 ||%||11.5 ||%||11.6 ||%|
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 $18.8 million in the first quarter of 2020. $1.8 million of the provision for credit loss expense related to unfunded commitments was recognized as noninterest expense, which negatively impacted first quarter 2020 Pre-tax, pre-provision income.
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 measures, see page 5. A reconciliation of GAAP to non-GAAP results can be found beginning on page 15.
The following information was filed by Boston Private Financial Holdings Inc (BPFH) on Wednesday, April 29, 2020 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.