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Boston Private Financial Holdings Reports Fourth Quarter Results
Fourth quarter 2008 GAAP net loss was $24.9 million, or ($0.47) per diluted share, impacted primarily by non-cash impairment charges and increased provisions for loan losses. Non-GAAP cash earnings per share (as defined below) were $0.04 in the fourth quarter.
Reduced risk exposure concentrated in Southern California by nearly 90% through sale or resolution of non-strategic loans from an original value of approximately $278 million (at March 31, 2008) to a now-current carrying value of $30 million.
Provided a $22.8 million (pre-tax) loan loss provision during the fourth quarter, boosting the allowance for loan losses to $89.3 million and building a solid reserve to non-accrual loan ratio of 134% (excluding loans held for sale which have been marked to fair value).
Bolstered capital through a private/public offering in July 2008 and participated in the U.S. Treasurys Troubled Asset Relief Program Capital Purchase Program (TARP-CPP) in November. Improved tangible common equity capital (TCE) to tangible assets (TA) ratio by 182 basis points during the year to 5.03%. Further, estimated Tier 1 Risk-Based Capital (RBC) and Total RBC ratios were increased to 14.9% and 16.2% respectively over the year, ahead of industry median levels and well in excess of regulatory capital minimums.
Franchise growth during the year included $1 billion in net AUM inflows from fee-based businesses and an increase in private banking deposits by 12% year-over-year. Overall, AUM declined $9.3 billion for the year, primarily due to market depreciation.
Boston, MA January 28, 2009 Boston Private Financial Holdings, Inc. (NASDAQ: BPFH) today reported a fourth quarter 2008 GAAP net loss of $24.9 million, or ($0.47) per diluted share, an improvement compared to a GAAP net loss of $31.2 million, or ($0.84) per diluted share reported in the fourth quarter 2007.
The $24.9 million GAAP net loss for the fourth quarter of 2008 included $25.0 million of non-cash, after-tax charges associated with goodwill and intangible impairments, $14.4 million of after-tax provisions for loan losses primarily due to declining credit quality in the Pacific Northwest and Florida, and a $2.6 million (after-tax) net loss on the disposition of non-strategic loans held for sale.
For the year, the Company reported a GAAP net loss of $388.8 million, or ($8.87) per diluted share, compared to GAAP earnings of $4.2 million, or $0.17 per diluted share, for the year in 2007. Included in the 2008 loss is $258.1 million in non-cash, after-tax charges associated with goodwill and intangible impairments, $133.2 million in after-tax provisions for loan losses, and a $66.0 million non-cash expense for re-equitizing affiliate partner Westfield Capital Management.
While 2008 was a very disappointing year for the Company, we saw some positive results and have made solid headway in our efforts to strengthen and improve our core business, said Timothy L. Vaill, Chairman and CEO. We are seeing continued strong credit performance in New England and Northern California, which represent 66% of our loan portfolio. Our decision to raise capital and sell the non-strategic assets in Southern California places us in a stronger position to face the continuing market challenges. The addition of TARP-CPP capital will enable us to continue to increase lending to our core small business and affluent clients, and contributed to our ability to originate new loans in the
The following information was filed by Boston Private Financial Holdings Inc (BPFH) on Thursday, January 29, 2009 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.
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