Boston Private Financial Holdings Inc (BPFH) 10-Q Quarterly Report August 2020

•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, MA - July 28, 2020

- 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.

The following information was filed by Boston Private Financial Holdings Inc (BPFH) on Tuesday, July 28, 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.

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Inside Boston Private Financial Holdings Inc's 10-Q Quarterly Report:

Financial - Expense Highlight
The decreases were primarily driven by decreases in depreciation expense on leasehold improvements and rent expense due to lease expirations that were not renewed.

Financial - Expense Highlight
Total operating expense for the six months ended June 30, 2020 increased $6.1 million, or 5%, compared to the same period in 2019, primarily due to increases in Other expense, Information systems expense, Marketing and business development expense, and Salaries and employee benefits expense, partially offset by decreases in Restructuring expense, Occupancy and equipment expense, and FDIC insurance expense.
Financial - Expense Highlight
Key items that affected the Company's results in the second quarter of 2020 compared to the same period of 2019 include: Provision expense for loan losses increased $21.2 million to $22.6 million for the three months ended June 30, 2020, compared to the same period of 2019.
Financial - Earnings Highlight
When credit quality declines and loans are placed on nonaccrual status, NIM can decrease because the same assets are earning less income.
Other - Other Highlight
The Company estimates credit losses on a collective basis for loans sharing similar risk characteristics using a quantitative model combined with an assessment of certain qualitative factors designed to address forecast risk and model risk inherent in the quantitative model output.
Other - Other
Although the Bank's capital currently...Read more
Financial - Expense
Total other liabilities, which consist...Read more
Financial - Expense
The increase in Total operating...Read more
Financial - Shares
The increase in shareholders' equity...Read more
Financial - Expense
During the second quarter of...Read more
Other - Other
The increase in AUM was...Read more
Other - Other
The increases in the average...Read more
Other - Other
We are also focused on...Read more
Other - Other
At June 30, 2020 and...Read more
Financial - Income
Interest income on other consumer...Read more
Revenue - Product
These items were partially offset...Read more
Other - Other
Goodwill and intangible assets, net...Read more
Financial - Dividend
The Bank pays dividends to...Read more
Financial - Shares
For the six months ended...Read more
Financial - Expense
The increase was primarily driven...Read more
Other - Other
The SBA has issued an...Read more
Financial - Expense
Restructuring expense decreased for the...Read more
Revenue - Product
Investment maturities, redemptions, principal payments,...Read more
Financial - Expense
Occupancy and equipment expense decreased...Read more
Other - Other
For instance, when there is...Read more
Revenue - Product
The sale of such loans...Read more
Financial - Expense
Total interest expense for the...Read more
Financial - Expense
For the six months ended...Read more
Other - Other
Lease liabilities decreased $9.0 million,...Read more
Revenue - Product
At June 30, 2020, consolidated...Read more
Financial - Income
Interest income on home equity...Read more
Financial - Expense
The decreases in the average...Read more
Other - Other
Critical Accounting Policies Critical accounting...Read more
Other - Other
Interest paid on non-deposit interest-bearing...Read more
Other - Other
For the six months ended...Read more
Other - Other
The Company utilized cash to...Read more
Financial - Income
The increase in Total other...Read more
Other - Other
Loans that evidence weakness or...Read more
Financial - Income
Net interest income remained relatively...Read more
Other - Other
"Notes to Unaudited Consolidated Financial...Read more
Financial - Income
Loans graded as substandard but...Read more
Financial - Income
The Company believes that its...Read more
Other - Other
In order to qualify for...Read more
Financial - Earnings
Net interest margin ("NIM") was...Read more
Other - Other
Accordingly, there can be no...Read more
Other - Other
As of June 30, 2020,...Read more
Financial - Income
For the six months ended...Read more
Financial - Income
For the six months ended...Read more
Financial - Income
In addition, the Bank collects...Read more
Other - Other
46 Executive Summary The Company...Read more
Other - Other
The effective tax rate for...Read more
Other - Other
In certain instances, although very...Read more
Other - Other
The decreases in the average...Read more
Financial - Income
Interest income on residential mortgage...Read more
Financial - Earnings
The Company recorded Net loss...Read more
Financial - Shares
As of June 30, 2020,...Read more
Other - Other
Due to the relatively low...Read more
Financial - Earnings
Interest rate spread is the...Read more
Other - Other
The provision/(credit) for loan losses...Read more
Financial - Shares
Capital Resources Total shareholders' equity...Read more
Other - Other
Total borrowings (consisting of Securities...Read more
Financial - Shares
A Federal Reserve-supervised institution, such...Read more

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Material Contracts, Statements, Certifications & more

Boston Private Financial Holdings Inc provided additional information to their SEC Filing as exhibits

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32.1: Section 1350 Certification

Exhibit 32.2: Section 1350 Certification

Ticker: BPFH
CIK: 821127
Form Type: 10-Q Quarterly Report
Accession Number: 0000821127-20-000189
Submitted to the SEC: Thu Aug 06 2020 4:02:29 PM EST
Accepted by the SEC: Thu Aug 06 2020
Period: Tuesday, June 30, 2020
Industry: State Commercial Banks