Boston Private Reports Third Quarter 2020 Results
10/21/2020 - 04:15 PM
BOSTON--(BUSINESS WIRE )--Boston Private Financial Holdings, Inc. (NASDAQ: BPFH) (the “Company” or “BPFH”) today reported third quarter 2020 Net income attributable to the Company of $22.7 million , compared to Net loss attributable to the Company of $(3.3) million for the second quarter of 2020 and Net income attributable to the Company of $20.0 million for the third quarter of 2019. Third quarter 2020 Diluted earnings per share were $0.28 , compared to Diluted loss per share of $(0.04) in the second quarter of 2020 and Diluted earnings per share of $0.24 in the third quarter of 2019.
"We are proud of the dedication and commitment shown by the Boston Private employees guiding our clients through this challenging environment," said Anthony DeChellis, CEO of Boston Private. "This quarter's financial results include a provision credit and continued strong new business in our Wealth Management & Trust business. We strengthened our capital and liquidity position to provide flexibility as we navigate the uncertain environment. We remain committed to our strategic objectives and believe that we are well positioned for long-term success."
Summary Financial Results
% Change
($ in millions, except for per share data)
3Q20
2Q20
3Q19
LQ
Y/Y
Net income/(loss) - GAAP
$22.7
$(3.3)
$20.0
nm
14%
Net income/(loss) - Operating
22.0
(3.3)
20.0
nm
10%
Diluted earnings/(loss) per share - GAAP
$0.28
$(0.04)
$0.24
nm
17%
Diluted earnings/(loss) per share - Operating
$0.27
$(0.04)
$0.24
nm
13%
Non-GAAP Financial Measures:
Pre-tax, pre-provision income
$19.9
$20.1
$25.7
(1)%
(23)%
Return on average common equity ("ROACE")
10.7%
(1.6)%
9.8
%
Return on average tangible common equity ("ROATCE")
11.9%
(1.4)%
11.0
%
nm = not meaningful
The Company's financial results improved linked quarter primarily driven by a lower loan loss provision, which changed from a $25.4 million provision expense during the second quarter of 2020 to a $2.8 million provision credit during the third quarter of 2020. The company’s operating results exclude the after-tax effect of a $0.9 million gain related to the revaluation of a receivable from the divestiture of BOS.
Net Interest Income and Margin
% Change
($ in millions)
3Q20
2Q20
3Q19
LQ
Y/Y
Net interest income
$57.8
$58.9
$56.2
(2)%
3%
Net interest margin
2.61%
2.75%
2.72%
Net interest income for the third quarter of 2020 was $57.8 million , a 2% decrease linked quarter and a 3% increase year-over-year. The linked quarter decrease was primarily driven by lower loan volumes, lower interest-earning asset yields, and prepayment penalties in the second quarter of 2020, partially offset by lower funding costs.
Net interest margin decreased 14 basis points on a linked quarter basis to 2.61% . The decline was primarily driven by lower asset yields, prepayment penalties in the second quarter of 2020 and excess cash balances, partially offset by lower funding costs.
Noninterest Income
% Change
($ in millions)
3Q20
2Q20
3Q19
LQ
Y/Y
Wealth management and trust fees
$18.2
$17.3
$19.1
6
%
(4)
%
Investment management fees
1.4
1.8
2.5
(21)
%
(44)
%
Private banking fees 1
2.3
2.6
3.6
(11)
%
(35)
%
Total core fees and income
$22.0
$21.6
$25.2
2
%
(13)
%
Total other income
1.1
1.0
—
5
%
nm
Total noninterest income
$23.0
$22.7
$25.1
2
%
(8)
%
nm = not meaningful
1 Private banking fees includes Other banking fee income and Gain/(loss) on sale of loans, net
Total core fees and income for the third quarter of 2020 was $22.0 million , a 2% increase linked quarter. The linked quarter increase was primarily driven by higher Wealth management and trust fees, partially offset by lower Investment management fees. Total other income for the third quarter of 2020 includes a $0.9 million gain related to the revaluation of a receivable from the divestiture of BOS.
Assets Under Management / Advisory
% Change
($ in millions)
3Q20
2Q20
3Q19
LQ
Y/Y
Wealth Management and Trust
$15,581
$14,889
$14,695
5
%
6
%
Other 3
672
1,067
1,533
(37)
%
(56)
%
Total assets under management / advisory
$16,253
$15,956
$16,228
2
%
—
%
Net flows
Wealth Management and Trust
$(12)
$60
$(100)
Other 3
(395)
(100)
(37)
Total net flows
$(407)
$(40)
$(137)
3 Includes results from DGHM
Total assets under management / advisory were $16.3 billion at the end of the third quarter of 2020, a 2% increase linked quarter. The linked quarter increase was primarily driven by the impact of favorable market action, partially offset by outflows at DGHM.
Total net flows were negative $407 million during the third quarter of 2020, driven by net outflows of $395 million at DGHM. The Wealth Management and Trust segment had net flows of negative $12 million during the third quarter of 2020. Negative flows in the Wealth Management and Trust segment were primarily the result of client assets that transferred from fixed income products into bank deposit products and tax payments made during the quarter. Overall client attrition was low, while new business at Wealth Management & Trust improved linked quarter to $299 million for the third quarter of 2020 compared to $251 million for the second quarter of 2020.
Noninterest Expense
% Change
($ in millions)
3Q20
2Q20
3Q19
LQ
Y/Y
Salaries and employee benefits
$34.7
$33.9
$31.7
2
%
9
%
Occupancy and equipment
8.2
7.6
8.3
8
%
(1)
%
Information systems
7.1
7.1
5.2
—
%
37
%
Professional services
4.0
3.4
4.4
17
%
(9)
%
Marketing and business development
0.9
2.3
1.4
(60)
%
(33)
%
Amortization of intangibles
0.7
0.7
0.7
2
%
6
%
FDIC insurance
1.0
0.8
0.1
nm
nm
Other
4.4
5.6
3.9
(22)
%
14
%
Total noninterest expense
$60.9
$61.5
$55.5
(1)
%
10
%
Memo: Excluding Off-Balance Sheet Provision
Reserve for unfunded loan commitments
$1.8
$2.8
—
(38)
%
nm
Total noninterest expense (non-GAAP)
$59.2
$58.6
$55.5
1
%
7
%
Total noninterest expense for the third quarter of 2020 was $60.9 million , which includes $1.8 million of reserve for unfunded loan commitments recognized in Other expense.
Excluding the reserve for unfunded loan commitments, total noninterest expense (non-GAAP) for the third quarter of 2020 was $59.2 million , an increase of 1% linked quarter and an increase of 7% year-over-year. The linked quarter increase was driven primarily by higher compensation expense, while the year-over-year increase was driven primarily by higher compensation expense and higher Information systems expense from technology initiatives placed in service.
The Company's effective tax rate for the third quarter of 2020 was 7.4% as a result of lower pre-tax income during 2020.
Loans - QTD Averages & Yields
% Change
($ in millions)
3Q20
2Q20
3Q19
LQ
Y/Y
Commercial and industrial
$1,033
$1,037
$1,102
—
%
(6)
%
Paycheck Protection Program ("PPP")
373
284
—
32
%
nm
Commercial real estate
2,653
2,659
2,518
—
%
5
%
Construction and land
218
233
196
(6)
%
11
%
Residential
2,810
2,863
3,016
(2)
%
(7)
%
Home equity
84
88
89
(5)
%
(5)
%
Other consumer
112
124
128
(10)
%
(13)
%
Total loans
$7,283
$7,289
$7,049
—
%
3
%
Total loans, excluding PPP (non-GAAP)
$6,910
$7,005
$7,049
(1)
%
(2)
%
Total loan yields
3.23%
3.42%
3.98%
Average total loans, excluding PPP (non-GAAP) in the third quarter of 2020 decreased 1% linked quarter and year-over-year.
Within Commercial and industrial loans, lower revolving line of credit usage was partially offset by Commercial tax-exempt loan growth of 3%
Nearly all of the PPP loans remain outstanding
The linked quarter decline in Residential loans was driven by the sale of $72 million of Residential loans
Deposits - QTD Averages & Costs
% Change
($ in millions)
3Q20
2Q20
3Q19
LQ
Y/Y
Non-interest bearing deposits
2,321
2,214
1,953
5
%
19
%
Interest bearing deposits
5,378
5,036
4,705
7
%
14
%
Total deposits
$7,700
$7,250
$6,658
6
%
16
%
Cost of total deposits
0.33%
0.41%
0.92%
Cost of total interest-bearing deposits
0.48%
0.59%
1.31%
Average total deposits in the third quarter of 2020 increased 6% linked quarter and 16% year-over-year to $7.7 billion . The linked quarter increase was driven by a combination of existing and new client balances, client asset flows from the Wealth Management & Trust segment into deposit products, and an increase in wealth sweep deposits.
Provision and Asset Quality
($ in millions)
3Q20
2Q20
1Q20
4Q19
3Q19
Provision and Allowance
Provision/(credit) for loan losses
$(4.6)
$22.6
$17.0
$(3.7)
$0.2
Reserve for unfunded loan commitments
1.8
2.8
1.8
—
—
Total Provision for credit losses
$(2.8)
$25.4
$18.8
$(3.7)
$0.2
Allowance for loan losses as a % of Total loans
1.17%
1.22%
0.97%
1.03%
1.07%
Asset Quality
Total net loans (charged-off)/ recovered
(0.2)
(1.5)
(0.3)
0.3
0.1
Total nonaccrual loans
41.3
25.6
24.3
16.1
17.6
Nonaccrual loans as a % of Total loans
0.57%
0.35%
0.35%
0.23%
0.25%
Special mention loans (criticized loans)
$199.5
$191.9
$92.6
$52.0
$58.1
Classified loans
123.1
114.2
112.3
74.0
80.8
Total criticized and classified loans
$322.6
$306.1
$204.9
$126.1
$139.0
The Company recorded a provision credit of $2.8 million during the third quarter of 2020. The provision release was primarily driven by an improved economic forecast related to the current expected credit losses methodology and resulted in lower reserves on residential mortgages and construction and land loans. The allowance for loan losses as a percentage of total loans, excluding PPP loans (non-GAAP), was 1.23% in the third quarter of 2020, compared to 1.28% in the second quarter of 2020.
Total nonaccrual loans as of September 30, 2020 was $41.3 million , an increase of $15.7 million , or 61% , linked quarter primarily driven by the downgrade of a commercial & industrial relationship in Northern California.
Total criticized and classified loans as of September 30, 2020 was $322.6 million , an increase of $16.5 million , or 5% , linked quarter primarily driven by the downgrade of $71 million of loans, partially offset by $54 million of payoffs, paydowns and upgrades. Of the $71 million in downgrades in the third quarter of 2020, $62 million were Commercial real estate loans across 16 relationships, primarily with hospitality and retail clients.
As of September 30, 2020:
Residential loans on deferral totaled approximately $100 million , or 3.6% of total residential loans, compared to a peak of approximately $220 million in the second quarter of 2020
Commercial & industrial loans on deferral totaled approximately $50 million , or 4.7% of total Commercial & industrial loans, compared to a peak of approximately $125 million in the second quarter of 2020
The majority of Commercial real estate clients that qualified for and accepted the debt service reserve program remain in the program, representing a total loan balance of approximately $78 million
Capital
3Q20
2Q20
1Q20
4Q19
3Q19
Tangible common equity/ Tangible assets (non-GAAP)
8.3%
8.3%
8.8%
8.6%
8.6%
Tangible book value per share (non-GAAP)
$9.48
$9.25
$9.31
$9.02
$8.90
Regulatory Capital Ratios: 3
Tier 1 common equity
11.3%
11.1%
11.2%
11.4%
11.2%
Tier 1 risk-based capital
12.8%
12.6%
12.7%
13.0%
12.8%
Total risk-based capital
14.1%
13.9%
13.8%
14.1%
13.9%
Tier 1 leverage capital
9.2%
9.2%
9.7%
9.8%
9.7%
3 Current quarter information is presented based on estimated data.
The Company's tangible book value per share increased to $9.48 in the third quarter of 2020, a 7% increase year-over-year. Risk-weighted regulatory capital ratios increased slightly linked quarter.
Concurrent with the release of third quarter 2020 earnings, the Board of Directors of the Company declared a cash dividend payable to common shareholders of $0.06 per share. The record date for this dividend is November 6, 2020, and the payment date is November 20, 2020.
Non-GAAP Financial Measures
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.
These non-GAAP financial measures include: return on average common equity; return on average tangible common equity; pre-tax, pre-provision income; tangible common equity / tangible assets; the efficiency ratio excluding amortization of intangibles; net income/(loss) attributable to the Company excluding notable items; net income/(loss) attributable to the common shareholders, treasury stock method, excluding notable items; diluted earnings/(loss) per share excluding notable items; and average total loans, excluding PPP.
A detailed reconciliation table of the Company’s GAAP to non-GAAP measures is included in the tables of this release and beginning on page 16 of the attached financial statements.
Management will hold a conference call at 8:00 a.m. Eastern Time on Thursday, October 22, 2020, to discuss the financial results, business highlights and outlook. To access the call:
Dial In #: (888) 317-6003
Elite Entry Number: 0457772
Replay Information:
Available from October 22, 2020 at 12 noon Eastern Time until October 29, 2020
Dial In #: (877) 344-7529
Conference Number: 10149141
The call will be simultaneously webcast and may be accessed on www.bostonprivate.com .
Boston Private is a leading provider of integrated wealth management, trust and banking services to individuals, families, businesses and nonprofits.
For more than 30 years, Boston Private has delivered comprehensive advice coupled with deep technical expertise to help clients simplify their lives and achieve their goals. The firm offers the capabilities of a large institution with the superior service of a boutique firm to clients across the United States.
Boston Private is the corporate brand of Boston Private Financial Holdings, Inc. (NASDAQ: BPFH).
For more information, visit www.bostonprivate.com .
Forward-Looking Statements
Certain statements in this press release that are not historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties. These statements include, among others, statements regarding our strategy; evaluations of interest rate trends and future liquidity; expectations as to changes in assets, deposits and results of operations; the impact of the COVID-19 pandemic; future operations; market position and financial position; and prospects, plans and objectives of management. You should not place undue reliance on our forward-looking statements. You should exercise caution in interpreting and relying on forward-looking statements because they are subject to significant risks, uncertainties and other factors which are, in some cases, beyond the Company’s control. Forward-looking statements are based on the current assumptions and beliefs of management and are only expectations of future results. The Company’s actual results could differ materially from those projected in the forward-looking statements as a result of, among other factors, the negative impacts and disruptions of the COVID-19 pandemic and measures taken to contain its spread on our employees, customers, business operations, credit quality, financial position, liquidity and results of operations; the length and extent of the economic contraction as a result of the COVID-19 pandemic; continued deterioration in employment levels, general business and economic conditions on a national basis and in the local markets in which the Company operates; changes in customer behavior; the possibility that future credits losses are higher than currently expected due to changes in economic assumptions, customer behavior or adverse economic developments; turbulence in the capital and debt markets; changes in interest rates; increases in loan defaults and charge-off rates; decreases in the value of securities and other assets; changes in loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and investments; competitive pressures from other financial institutions; operational risks including, but not limited to, cybersecurity incidents, fraud, natural disasters and future pandemics; changes in regulation; reputational risk relating to the Company’s participation in the Paycheck Protection Program and other pandemic-related legislative and regulatory initiatives and programs; risks that goodwill and intangibles recorded in the Company’s financial statements will become impaired; the risk that the Company’s deferred tax asset may not be realized; risks related to the identification and implementation of acquisitions, dispositions and restructurings; changes in assumptions used in making such forward-looking statements; and the other risks and uncertainties detailed in the Company’s Annual Report on Form 10-K and updated by the Company’s Quarterly Reports on Form 10-Q and other filings submitted to the Securities and Exchange Commission. Forward-looking statements speak only as of the date on which they are made. The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.
BOSTON PRIVATE FINANCIAL HOLDINGS, INC.
Consolidated Balance Sheets
Unaudited ($ in thousands, except share and per share data)
3Q20
2Q20
1Q20
4Q19
3Q19
ASSETS:
Cash and cash equivalents
$
546,263
$
179,027
$
61,714
$
292,479
$
78,010
Investment securities available-for-sale
1,011,327
1,002,970
993,166
978,284
935,538
Investment securities held-to-maturity
38,600
42,495
45,395
48,212
51,379
Equity securities at fair value
32,818
24,492
23,080
18,810
21,780
Stock in Federal Home Loan Bank and Federal Reserve Bank
36,618
42,407
45,273
39,078
47,756
Loans held for sale
15,074
9,786
7,671
7,386
6,658
Loans
7,222,569
7,332,954
7,043,338
6,976,704
7,067,151
Less: Allowance for loan losses
84,551
89,324
68,211
71,982
75,359
Loans, net of allowance for loan losses
7,138,018
7,243,630
6,975,127
6,904,722
6,991,792
Premises and equipment, net
42,907
43,805
43,544
44,527
42,658
Goodwill
57,607
57,607
57,607
57,607
57,607
Intangible assets, net
8,898
8,935
9,637
10,352
10,622
Accrued interest receivable
25,935
24,918
24,054
24,175
24,851
Deferred income taxes, net
8,250
9,116
5,630
11,383
15,704
Right-of-use assets
94,879
94,143
98,896
102,075
107,045
Other assets
374,111
375,575
355,532
291,411
299,544
TOTAL ASSETS
$
9,431,305
$
9,158,906
$
8,746,326
$
8,830,501
$
8,690,944
LIABILITIES:
Deposits
$
7,827,719
$
7,427,397
$
6,835,572
$
7,241,476
$
6,658,242
Securities sold under agreements to repurchase
42,544
46,623
45,319
53,398
48,860
Federal funds purchased
—
—
145,000
—
230,000
Federal Home Loan Bank borrowings
296,236
426,313
491,254
350,829
570,904
Junior subordinated debentures
106,363
106,363
106,363
106,363
106,363
Lease liabilities
108,932
108,234
113,574
117,214
122,799
Other liabilities
203,342
218,771
180,452
140,820
143,607
TOTAL LIABILITIES
8,585,136
8,333,701
7,917,534
8,010,100
7,880,775
REDEEMABLE NONCONTROLLING INTERESTS (“RNCI”)
—
—
—
1,383
1,481
SHAREHOLDERS' EQUITY:
Common stock, $1.00 par value; authorized: 170,000,000 shares
82,255
82,058
81,800
83,266
83,242
Additional paid-in capital
597,113
594,463
593,167
600,708
599,877
Retained earnings
136,394
118,647
131,761
127,469
116,210
Accumulated other comprehensive income
30,407
30,037
22,064
7,575
9,359
TOTAL SHAREHOLDERS' EQUITY
846,169
825,205
828,792
819,018
808,688
TOTAL LIABILITIES, RNCI, AND SHAREHOLDERS' EQUITY
$
9,431,305
$
9,158,906
$
8,746,326
$
8,830,501
$
8,690,944
BOSTON PRIVATE FINANCIAL HOLDINGS, INC.
Consolidated Income Statements
Unaudited ($ in thousands, except share and per share data)
3Q20
2Q20
1Q20
4Q19
3Q19
REVENUE:
Interest income
$
65,453
$
68,819
$
73,082
$
75,291
$
77,604
Interest expense
7,629
9,881
15,825
19,166
21,451
Net interest income
57,824
58,938
57,257
56,125
56,153
Provision/(credit) for loan losses 4
(4,569
)
22,604
16,962
(3,668
)
167
Net interest income after provision/(credit) for loan losses
62,393
36,334
40,295
59,793
55,986
Wealth management and trust fees 5
18,240
17,261
18,371
18,720
19,067
Investment management fees
1,393
1,770
1,925
2,554
2,496
Private banking fee income
1,320
2,395
2,490
2,924
2,658
Gain on sale of loans, net
1,006
204
100
557
934
Total core fees and income
21,959
21,630
22,886
24,755
25,155
Total other income
1,086
1,032
(1,365
)
2,038
(29
)
TOTAL REVENUE 6
80,869
81,600
78,778
82,918
81,279
NONINTEREST EXPENSE:
Salaries and employee benefits
34,671
33,937
35,096
34,186
31,684
Occupancy and equipment
8,150
7,560
7,646
7,578
8,260
Information systems
7,096
7,113
6,725
6,476
5,169
Professional services
4,025
3,446
3,601
3,920
4,435
Marketing and business development
935
2,313
1,890
2,017
1,403
Amortization of intangibles
714
702
715
676
671
FDIC insurance
960
767
—
(19
)
59
Other 4
4,386
5,615
5,235
3,623
3,856
TOTAL NONINTEREST EXPENSE
60,937
61,453
60,908
58,457
55,537
INCOME/(LOSS) BEFORE INCOME TAXES
24,501
(2,457
)
908
28,129
25,575
Income tax expense
1,821
841
102
6,788
5,517
Net income/(loss) before attribution to noncontrolling interests
22,680
(3,298
)
806
21,341
20,058
Less: Net income attributable to noncontrolling interests
—
—
6
97
96
NET INCOME/(LOSS) ATTRIBUTABLE TO THE COMPANY
$
22,680
$
(3,298
)
$
800
$
21,244
$
19,962
Adjustments, treasury stock method 7
—
—
414
98
304
NET INCOME/(LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS
$
22,680
$
(3,298
)
$
1,214
$
21,342
$
20,266
COMMON SHARE DATA:
Weighted average basic shares outstanding
82,221,705
81,929,752
83,005,064
83,238,982
83,631,403
Weighted average diluted shares outstanding 8
82,362,338
81,929,752
83,318,041
83,637,786
83,956,708
Diluted earnings/(loss) per share
$
0.28
$
(0.04
)
$
0.01
$
0.26
$
0.24
4 Total Provision for credit losses includes the Provision/(credit) for loan losses and the Reserve for unfunded loan commitments within Other expense.
5 Wealth management and trust fees consists of revenue from Boston Private Wealth LLC ("BPW"), KLS Professional Advisors Group, LLC ("KLS") through the effective date of its merger with BPW, and the trust operations of Boston Private Bank & Trust Company.
6 Total revenue is the sum of Net interest income, Total core fees and income, and Total other income.
7 Adjustments to Net income/(loss) attributable to the Company to arrive at Net income/(loss) attributable to common shareholders, treasury stock method, as presented in these tables, include decrease/(increase) in Noncontrolling interests redemption value.
8 For a description of the Company's policies regarding Diluted earnings per share, please refer to Part II. Item 8. “Financial Statements and Supplementary Data - Note 16: Earnings Per Share” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.
BOSTON PRIVATE FINANCIAL HOLDINGS, INC.
Consolidated Income Statements
Unaudited ($ in thousands, except share and per share data)
Nine months ended September 30,
2020
2019
REVENUE:
Interest income
$
207,354
$
233,156
Interest expense
33,335
61,205
Net interest income
174,019
171,951
Provision/(credit) for loan losses 4
34,997
104
Net interest income after provision/(credit) for loan losses
139,022
171,847
Wealth management and trust fees 5
53,872
57,037
Investment management fees
5,088
7,601
Private banking fee income
6,205
8,024
Gain on sale of loans, net
1,310
1,065
Total core fees and income
66,475
73,727
Total other income
753
1,027
TOTAL REVENUE 6
241,247
246,705
NONINTEREST EXPENSE:
Salaries and employee benefits
103,704
100,116
Occupancy and equipment
23,356
24,460
Information systems
20,934
16,166
Professional services
11,072
11,308
Marketing and business development
5,138
4,422
Amortization of intangibles
2,131
2,015
FDIC insurance
1,727
1,304
Restructuring
—
1,646
Other 4
15,236
10,312
TOTAL NONINTEREST EXPENSE
183,298
171,749
INCOME BEFORE INCOME TAXES
22,952
74,852
Income tax expense
2,764
15,803
Net income before attribution to noncontrolling interests
20,188
59,049
Less: Net income attributable to noncontrolling interests
6
265
NET INCOME ATTRIBUTABLE TO THE COMPANY
$
20,182
$
58,784
Adjustments, treasury stock method 7
414
1,045
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS
$
20,596
$
59,829
COMMON SHARE DATA
Weighted average basic shares outstanding
82,382,050
83,495,361
Weighted average diluted shares outstanding 8
82,746,866
84,003,281
Diluted earnings per share
$
0.25
$
0.71
4 Total Provision for credit losses includes the Provision/(credit) for loan losses and the Reserve for unfunded loan commitments within Other expense.
5 Wealth management and trust fees consists of revenue from Boston Private Wealth LLC ("BPW"), KLS Professional Advisors Group, LLC ("KLS") through the effective date of its merger with BPW, and the trust operations of Boston Private Bank & Trust Company.
6 Total revenue is the sum of Net interest income, Total core fees and income, and Total other income.
7 Adjustments to Net income attributable to the Company to arrive at Net income attributable to common shareholders, treasury stock method, as presented in these tables, include decrease/(increase) in Noncontrolling interests redemption value.
8 For a description of the Company's policies regarding Diluted earnings per share, please refer to Part II. Item 8. “Financial Statements and Supplementary Data - Note 16: Earnings Per Share” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.
BOSTON PRIVATE FINANCIAL HOLDINGS, INC.
Consolidated Financial Highlights
Unaudited ($ in thousands, except share and per share data)
3Q20
2Q20
1Q20
4Q19
3Q19
KEY STATISTICS:
Return on average assets (non-GAAP) 9
0.96
%
(0.15
)%
0.04
%
0.96
%
0.91
%
ROACE (non-GAAP) 9
10.68
%
(1.58
)%
0.39
%
10.29
%
9.80
%
ROATCE (non-GAAP) 9
11.88
%
(1.43
)%
0.72
%
11.51
%
10.99
%
Efficiency ratio (non-GAAP) 9
74.5
%
74.4
%
76.4
%
69.7
%
67.5
%
Noninterest income to total revenue
28.5
%
27.8
%
27.3
%
32.3
%
30.9
%
Net interest margin
2.61
%
2.75
%
2.76
%
2.70
%
2.72
%
Average loan to average deposit ratio
94.6
%
100.5
%
99.0
%
101.6
%
105.9
%
Cost of total deposits
0.33
%
0.41
%
0.72
%
0.86
%
0.92
%
Cost of interest-bearing deposits
0.48
%
0.59
%
1.02
%
1.20
%
1.31
%
Cost of total funding
0.37
%
0.50
%
0.83
%
0.99
%
1.12
%
Allowance for loan losses / Total loans
1.17
%
1.22
%
0.97
%
1.03
%
1.07
%
Nonperforming loans / Total loans
0.57
%
0.35
%
0.35
%
0.23
%
0.25
%
Net (charge-offs)/recoveries / Total loans 9
(0.01
)%
(0.08
)%
(0.02
)%
0.02
%
0.01
%
CAPITAL HIGHLIGHTS:
Tier 1 common equity 3
$
752,492
$
731,316
$
742,044
$
745,926
$
732,980
Tier 1 capital 3
$
852,514
$
831,338
$
842,066
$
846,337
$
833,431
Total capital 3
$
935,824
$
913,936
$
914,572
$
919,573
$
910,076
Risk-weighted assets ("RWA") 3
$
6,654,690
$
6,593,957
$
6,627,339
$
6,530,804
$
6,533,884
Average assets for leverage 3
$
9,237,940
$
9,009,565
$
8,691,254
$
8,659,944
$
8,588,358
Tier 1 common equity ratio 3
11.31
%
11.09
%
11.20
%
11.42
%
11.22
%
Tier 1 risk-based capital ratio 3
12.81
%
12.61
%
12.71
%
12.96
%
12.76
%
Total risk-based capital ratio 3
14.06
%
13.86
%
13.80
%
14.08
%
13.93
%
Tier 1 leverage capital ratio 3
9.23
%
9.23
%
9.69
%
9.77
%
9.70
%
Total equity / Total assets
8.97
%
9.01
%
9.48
%
9.27
%
9.30
%
Tangible common equity / Tangible assets (non-GAAP)
8.33
%
8.34
%
8.77
%
8.57
%
8.59
%
End of period market price per share
$
5.52
$
6.88
$
7.15
$
12.03
$
11.66
End of period shares outstanding
82,254,594
82,058,483
81,800,486
83,265,674
83,241,952
Book value per common share
$
10.29
$
10.06
$
10.13
$
9.84
$
9.71
Tangible book value per share (non-GAAP)
$
9.48
$
9.25
$
9.31
$
9.02
$
8.90
Common Equity Repurchase Program:
Total shares of common stock repurchased
—
—
1,565,060
—
678,165
Average price paid per share of common stock
$
—
$
—
$
8.18
$
—
$
10.61
Aggregate repurchases of common stock ($ in millions)
$
—
$
—
$
12.8
$
—
$
7.2
3 Current quarter information is presented based on estimated data.
9 Annualized.
BOSTON PRIVATE FINANCIAL HOLDINGS, INC.
Consolidated AUM and Balance Sheet - End of Period Balances
Unaudited ($ in thousands)
3Q20
2Q20
1Q20
4Q19
3Q19
ASSETS UNDER MANAGEMENT AND ADVISORY ("AUM"):
Wealth Management and Trust
$
15,581,000
$
14,889,000
$
13,497,000
$
15,224,000
$
14,695,000
Other 2
672,000
1,067,000
1,016,000
1,544,000
1,533,000
TOTAL AUM
$
16,253,000
$
15,956,000
$
14,513,000
$
16,768,000
$
16,228,000
AUM Rollforward:
Beginning balance
$
15,956,000
$
14,513,000
$
16,768,000
$
16,228,000
$
16,199,000
Net flows
(407,000
)
(40,000
)
150,000
(209,000
)
(137,000
)
Market returns
704,000
1,483,000
(2,405,000
)
749,000
166,000
Ending balance
$
16,253,000
$
15,956,000
$
14,513,000
$
16,768,000
$
16,228,000
AUM Net Flows:
Wealth Management and Trust
$
(12,000
)
$
60,000
$
176,000
$
(114,000
)
$
(100,000
)
Other 2
(395,000
)
(100,000
)
(26,000
)
(95,000
)
(37,000
)
TOTAL NET FLOWS
$
(407,000
)
$
(40,000
)
$
150,000
$
(209,000
)
$
(137,000
)
DEPOSITS:
Demand deposits (non-interest bearing)
$
2,346,126
$
2,293,864
$
2,020,440
$
1,971,013
$
1,947,363
Savings and NOW
756,797
758,656
653,006
646,199
666,107
Money market
4,187,657
3,753,228
3,468,701
3,969,330
3,366,623
Certificates of deposit
537,139
621,649
693,425
654,934
678,149
TOTAL DEPOSITS
$
7,827,719
$
7,427,397
$
6,835,572
$
7,241,476
$
6,658,242
LOANS:
Commercial and industrial
$
583,145
$
565,748
$
670,744
$
694,034
$
695,029
Paycheck Protection Program
371,496
370,034
—
—
—
Commercial tax-exempt
472,342
419,264
445,319
447,927
448,488
Commercial real estate
2,659,890
2,676,708
2,626,299
2,551,274
2,533,346
Construction and land
211,697
240,211
238,293
225,983
209,741
Residential
2,729,164
2,859,627
2,841,926
2,839,155
2,964,042
Home equity
81,797
84,588
89,350
83,657
84,432
Consumer
113,038
116,774
131,407
134,674
132,073
TOTAL LOANS
$
7,222,569
$
7,332,954
$
7,043,338
$
6,976,704
$
7,067,151
2 Includes results from Dalton, Greiner, Hartman, Maher & Co, LLC ("DGHM")
BOSTON PRIVATE FINANCIAL HOLDINGS, INC.
Provision and Asset Quality
Unaudited ($ in thousands)
3Q20
2Q20
1Q20
4Q19
3Q19
PROVISION:
Provision/(credit) for loan losses
$
(4,569
)
$
22,604
$
16,962
$
(3,668
)
$
167
Reserve for unfunded loan commitments 4
1,750
2,829
1,827
(23
)
(23
)
Total Provision/(credit) for credit losses
$
(2,819
)
$
25,433
$
18,789
$
(3,691
)
$
144
CHARGE-OFFS:
Loan charge-offs
$
(245
)
$
(1,546
)
$
(528
)
$
(285
)
$
(185
)
Loan recoveries
41
55
180
576
310
NET (CHARGE-OFFS)/RECOVERIES
$
(204
)
$
(1,491
)
$
(348
)
$
291
$
125
Net charge-offs to average loans (annualized)
(0.01
)%
(0.08
)%
(0.02
)%
0.02
%
0.01
%
Net (Charge-offs)/Recoveries by Loan Type:
Commercial and industrial
$
(136
)
$
(337
)
$
(473
)
$
118
$
95
Commercial real estate
—
—
—
183
27
Home equity
—
(1,157
)
132
4
6
Consumer
(68
)
3
(7
)
(14
)
(3
)
NET (CHARGE-OFFS)/RECOVERIES
$
(204
)
$
(1,491
)
$
(348
)
$
291
$
125
LOAN QUALITY DATA:
Special mention loans
$
199,509
$
191,882
$
92,623
$
52,026
$
58,133
Accruing classified loans 10
81,827
88,586
87,948
57,922
63,278
Nonaccrual loans
41,263
25,604
24,314
16,103
17,565
Total classified
123,090
114,190
112,262
74,025
80,843
Criticized and classified loans
$
322,599
$
306,072
$
204,885
$
126,051
$
138,976
Loans 30-89 days past due and accruing 11
$
5,635
$
5,535
$
14,852
$
25,945
$
4,179
4 Total Provision for credit losses includes the Provision/(credit) for loan losses and the Reserve for unfunded loan commitments within Other expense.
10 Accruing classified loans include loans that are classified as substandard but are still accruing interest income. Boston Private Bank & Trust Company may classify a loan as substandard where known information about possible credit problems of the related borrowers causes management to have doubts as to the ability of such borrowers to comply with the present repayment terms and which may result in disclosure of such loans as nonaccrual at some time in the future.
11 At June 30, 2020, the Company had one loan totaling less than $0.1 million that was more than 90 days past due but still on accrual status. This loan originated in the New England region. The Company had no other loans outstanding more than 90 days past due but still on accrual status in comparative periods.
BOSTON PRIVATE FINANCIAL HOLDINGS, INC.
Average Balances, Yields, and Rates
Unaudited ($ in thousands)
Average Balance
Interest Income/Expense
Average Yield/Rate
3Q20
2Q20
3Q19
3Q20
2Q20
3Q19
3Q20
2Q20
3Q19
INTEREST-EARNING ASSETS
Cash and investments:
Taxable investment securities
$
201,515
$
198,337
$
198,655
$
853
$
859
$
938
1.69
%
1.73
%
1.95
%
Non-taxable investment securities
313,130
316,513
305,108
1,974
2,005
1,924
2.52
%
2.53
%
2.52
%
Mortgage-backed securities
515,813
505,669
492,514
2,354
2,566
2,622
1.83
%
2.03
%
2.13
%
Short-term investments and other
432,117
186,895
101,958
654
582
1,084
0.59
%
1.23
%
4.06
%
Total cash and investments
1,462,575
1,207,414
1,098,235
5,835
6,012
6,568
1.59
%
1.99
%
2.39
%
Loans: 12
Commercial and industrial
1,032,816
1,037,285
1,101,672
8,314
9,708
11,523
3.15
%
3.70
%
4.09
%
Paycheck Protection Program
373,047
283,619
—
2,390
1,573
—
2.51
%
2.19
%
—
%
Commercial real estate
2,652,770
2,659,074
2,518,048
23,546
24,602
29,118
3.47
%
3.66
%
4.52
%
Construction and land
218,211
233,305
195,843
2,109
2,251
2,410
3.78
%
3.82
%
4.82
%
Residential
2,809,871
2,862,708
3,016,265
22,089
23,079
25,567
3.14
%
3.22
%
3.39
%
Home equity
84,226
88,307
89,068
623
650
1,121
2.94
%
2.96
%
4.99
%
Other consumer
111,657
124,346
127,987
547
944
1,297
1.95
%
3.05
%
4.02
%
Total loans
7,282,598
7,288,644
7,048,883
59,618
62,807
71,036
3.23
%
3.42
%
3.98
%
Total earning assets
8,745,173
8,496,058
8,147,118
65,453
68,819
77,604
2.96
%
3.22
%
3.76
%
LESS: Allowance for loan losses
89,370
68,473
75,199
Cash and due from banks
34,761
39,959
49,065
Other assets
655,999
641,657
544,368
TOTAL AVERAGE ASSETS
$
9,346,563
$
9,109,201
$
8,665,352
INTEREST-BEARING LIABILITIES
Interest-bearing deposits: 13
Savings and NOW
$
722,742
$
680,758
$
615,730
$
197
$
187
$
275
0.11
%
0.11
%
0.18
%
Money market
4,070,026
3,684,147
3,378,006
4,790
4,848
11,523
0.47
%
0.53
%
1.35
%
Certificates of deposit
585,729
671,470
711,299
1,447
2,300
3,689
0.98
%
1.38
%
2.06
%
Total interest-bearing deposits 13
5,378,497
5,036,375
4,705,035
6,434
7,335
15,487
0.48
%
0.59
%
1.31
%
Junior subordinated debentures
106,363
106,363
106,363
508
764
1,022
1.87
%
2.84
%
3.76
%
FHLB borrowings and other
388,412
610,856
833,535
687
1,782
4,942
0.69
%
1.15
%
2.32
%
Total interest-bearing liabilities 13
5,873,272
5,753,594
5,644,933
7,629
9,881
21,451
0.52
%
0.69
%
1.50
%
Non-interest bearing demand deposits 13
2,321,223
2,213,829
1,953,214
Payables and other liabilities
309,462
306,896
258,371
Total average liabilities
8,503,957
8,274,319
7,856,518
Redeemable noncontrolling interests
—
—
944
Average shareholders’ equity
842,606
834,882
807,890
TOTAL AVERAGE LIABILITIES, RNCI, AND SHAREHOLDERS’ EQUITY
$
9,346,563
$
9,109,201
$
8,665,352
Net interest income
$
57,824
$
58,938
$
56,153
Interest rate spread
2.44
%
2.53
%
2.26
%
Net interest margin
2.61
%
2.75
%
2.72
%
Average total deposits 13
$
7,699,720
$
7,250,204
$
6,658,249
0.33
%
0.41
%
0.92
%
Average total deposits and borrowings 13
$
8,194,495
$
7,967,423
$
7,598,147
0.37
%
0.50
%
1.12
%
12 Average loans includes Loans held for sale and Nonaccrual loans
13 Average total deposits is the sum of Average total interest-bearing deposits and Average non-interest bearing demand deposits. Average total deposits and borrowings is the sum of Average total interest-bearing liabilities and Average non-interest bearing demand deposits.
BOSTON PRIVATE FINANCIAL HOLDINGS, INC.
Average Balances, Yields, and Rates
Unaudited ($ in thousands)
Average Balance
Interest Income/Expense
Average Yield/Rate
Nine Months Ended
Nine Months Ended
Nine Months Ended
INTEREST-EARNING ASSETS
9/30/20
9/30/19
9/30/20
9/30/19
9/30/20
9/30/19
Cash and investments:
Taxable investment securities
$
200,346
$
223,072
$
2,580
$
3,244
1.72
%
1.94
%
Non-taxable investment securities
315,101
305,422
5,977
5,726
2.53
%
2.50
%
Mortgage-backed securities
514,043
507,338
7,707
8,225
2.00
%
2.16
%
Short-term investments and other
256,143
104,225
2,307
3,049
1.19
%
3.78
%
Total cash and investments
1,285,633
1,140,057
18,571
20,244
1.92
%
2.36
%
Loans: 12
Commercial and industrial
1,074,159
1,088,027
28,746
33,673
3.51
%
4.08
%
Paycheck Protection Program
218,175
—
3,963
—
2.41
%
—
%
Commercial real estate
2,631,461
2,474,804
75,630
87,222
3.78
%
4.65
%
Construction and land
228,243
203,211
6,932
7,610
3.99
%
4.94
%
Residential
2,841,023
2,999,480
68,636
76,847
3.22
%
3.42
%
Home equity
86,186
90,361
2,225
3,388
3.44
%
5.01
%
Other consumer
122,706
128,879
2,651
4,172
2.88
%
4.33
%
Total loans
7,201,953
6,984,762
188,783
212,912
3.46
%
4.04
%
Total earning assets
8,487,586
8,124,819
207,354
233,156
3.23
%
3.80
%
LESS: Allowance for loan losses
69,929
74,863
Cash and due from banks
41,461
46,906
Other assets
620,313
516,642
TOTAL AVERAGE ASSETS
$
9,079,431
$
8,613,504
INTEREST-BEARING LIABILITIES
Interest-bearing deposits: 13
Savings and NOW
$
680,962
$
658,154
$
616
$
847
0.12
%
0.17
%
Money market
3,835,219
3,317,117
19,295
32,072
0.67
%
1.29
%
Certificates of deposit
641,800
746,453
6,654
11,141
1.38
%
2.00
%
Total interest-bearing deposits 13
5,157,981
4,721,724
26,565
44,060
0.69
%
1.25
%
Junior subordinated debentures
106,363
106,363
2,189
3,223
2.74
%
4.05
%
FHLB borrowings and other
484,674
801,519
4,581
13,922
1.24
%
2.29
%
Total interest-bearing liabilities 13
5,749,018
5,629,606
33,335
61,205
0.77
%
1.45
%
Non-interest bearing demand deposits 13
2,194,237
1,949,948
Payables and other liabilities
295,327
243,370
Total average liabilities
8,238,582
7,822,924
Redeemable noncontrolling interests
400
1,642
Average shareholders’ equity
840,449
788,938
TOTAL AVERAGE LIABILITIES, RNCI, AND SHAREHOLDERS’ EQUITY
$
9,079,431
$
8,613,504
Net interest income
$
174,019
$
171,951
Interest rate spread
2.46
%
2.35
%
Net interest margin
2.71
%
2.80
%
Average total deposits 13
$
7,352,218
$
6,671,672
0.48
%
0.88
%
Average total deposits and borrowings 13
$
7,943,255
$
7,579,554
0.56
%
1.08
%
12 Average loans includes Loans held for sale and Nonaccrual loans
13 Average total deposits is the sum of Average total interest-bearing deposits and Average non-interest bearing demand deposits. Average total deposits and borrowings is the sum of Average total interest-bearing liabilities and Average non-interest bearing demand deposits.
BOSTON PRIVATE FINANCIAL HOLDINGS, INC.
Regional Loan Data
Unaudited ($ in thousands)
3Q20
2Q20
1Q20
4Q19
3Q19
New England
$
3,669,746
$
3,781,603
$
3,724,959
$
3,776,747
$
3,868,690
Northern California
1,763,556
1,741,255
1,618,668
1,532,786
1,559,569
Southern California
1,789,267
1,810,096
1,699,711
1,667,171
1,638,892
Total loans
$
7,222,569
$
7,332,954
$
7,043,338
$
6,976,704
$
7,067,151
Loans (charged-off)/recovered, net:
New England
$
(111
)
$
7
$
15
$
414
$
275
Northern California
—
3
122
(10
)
6
Southern California
(93
)
(1,501
)
(485
)
(113
)
(156
)
Total net loans (charged-off)/recovered
$
(204
)
$
(1,491
)
$
(348
)
$
291
$
125
Special mention loans:
New England
$
103,060
$
83,026
$
61,741
$
21,691
$
19,828
Northern California
63,192
75,609
5,947
5,227
4,821
Southern California
33,257
33,247
24,935
25,108
33,484
Total special mention loans
$
199,509
$
191,882
$
92,623
$
52,026
$
58,133
Accruing classified loans:
New England
$
74,682
$
53,124
$
50,483
$
20,428
$
21,830
Northern California
4,589
21,712
24,843
24,946
23,938
Southern California
2,556
13,750
12,622
12,548
17,510
Total accruing classified loans
$
81,827
$
88,586
$
87,948
$
57,922
$
63,278
Nonaccruing loans:
New England
$
11,807
$
11,630
$
11,965
$
9,764
$
8,999
Northern California
25,133
9,459
6,575
319
2,395
Southern California
4,323
4,515
5,774
6,020
6,171
Total nonaccruing loans
$
41,263
$
25,604
$
24,314
$
16,103
$
17,565
14 The concentration of the Private Banking loan data and credit quality is primarily based on the location of the lenders' regional offices.
BOSTON PRIVATE FINANCIAL HOLDINGS, INC.
Reconciliations of Non-GAAP Financial Measures
Unaudited ($ in thousands, except share and per share data)
3Q20
2Q20
1Q20
4Q19
3Q19
ROACE AND ROATCE:
Net income/(loss) attributable to the Company (GAAP) (A)
$
22,680
$
(3,298
)
$
800
$
21,244
$
19,962
ADD: Amortization of intangibles, net of tax
564
555
565
534
530
Tangible common net income/(loss) (non-GAAP) (B)
$
23,244
$
(2,743
)
$
1,365
$
21,778
$
20,492
Total average shareholders’ equity (C)
$
842,606
$
834,882
$
838,935
$
818,816
$
807,890
LESS: Average goodwill and intangibles, net
(66,246
)
(66,877
)
(67,586
)
(68,031
)
(68,359
)
Average tangible common equity (non-GAAP) (D)
$
776,360
$
768,005
$
771,349
$
750,785
$
739,531
ROACE (annualized) (A/C)
10.68
%
(1.58
)%
0.39
%
10.29
%
9.80
%
ROATCE (annualized) (B/D)
11.88
%
(1.43
)%
0.72
%
11.51
%
10.99
%
PRE-TAX, PRE-PROVISION INCOME:
Income/(loss) before income taxes (GAAP)
$
24,501
$
(2,457
)
$
908
$
28,129
$
25,575
ADD BACK: Provision/(credit) for loan losses
(4,569
)
22,604
16,962
(3,668
)
167
Pre-tax, pre-provision income (non-GAAP)
$
19,932
$
20,147
$
17,870
$
24,461
$
25,742
TANGIBLE COMMON EQUITY:
Total shareholders’ equity (GAAP)
$
846,169
$
825,205
$
828,792
$
819,018
$
808,688
LESS: Goodwill and intangibles, net
(66,505
)
(66,542
)
(67,244
)
(67,959
)
(68,229
)
Tangible common equity (non-GAAP) (A)
$
779,664
$
758,663
$
761,548
$
751,059
$
740,459
Total assets (GAAP)
$
9,431,305
$
9,158,906
$
8,746,326
$
8,830,501
$
8,690,944
LESS: Goodwill and intangibles, net
(66,505
)
(66,542
)
(67,244
)
(67,959
)
(68,229
)
Tangible assets (non-GAAP) (B)
$
9,364,800
$
9,092,364
$
8,679,082
$
8,762,542
$
8,622,715
End of period shares outstanding (C)
82,254,594
82,058,483
81,800,486
83,265,674
83,241,952
Tangible common equity/ Tangible assets (non-GAAP) (A/B)
8.33
%
8.34
%
8.77
%
8.57
%
8.59
%
Tangible book value per share (non-GAAP) (A/C)
$
9.48
$
9.25
$
9.31
$
9.02
$
8.90
AVERAGE LOANS:
Total loans
$
7,282,598
$
7,288,644
$
7,033,733
$
7,072,710
$
7,048,883
LESS: PPP
373,047
283,619
—
—
—
Total loans, excluding PPP (non-GAAP)
$
6,909,551
$
7,005,025
$
7,033,733
$
7,072,710
$
7,048,883
Total loan yields, excluding PPP (non-GAAP)
3.27
%
3.47
%
3.75
%
3.83
%
3.98
%
BOSTON PRIVATE FINANCIAL HOLDINGS, INC.
Reconciliations of Non-GAAP Financial Measures
Unaudited ($ in thousands, except share and per share data)
3Q20
2Q20
1Q20
4Q19
3Q19
RETURN ON AVERAGE ASSETS:
Net income/(loss) (GAAP) (A)
$
22,680
$
(3,298
)
$
800
$
21,244
$
19,962
Average assets (non-GAAP) (B)
9,346,563
9,109,201
8,779,391
8,738,750
8,665,352
Return on average assets (annualized) (non-GAAP) (A/B)
0.96
%
(0.15
)%
0.04
%
0.96
%
0.91
%
EFFICIENCY RATIO:
Total noninterest expense (GAAP) (A)
$
60,937
$
61,453
$
60,908
$
58,457
$
55,537
LESS: Amortization of intangibles
714
702
715
676
671
Total noninterest expense (non-GAAP) (B)
$
60,223
$
60,751
$
60,193
$
57,781
$
54,866
Net interest income (GAAP)
$
57,824
$
58,938
$
57,257
$
56,125
$
56,153
Total core fees and income (GAAP)
21,959
21,630
22,886
24,755
25,155
Total other income (GAAP)
1,086
1,032
(1,365
)
2,038
(29
)
Total revenue (GAAP) (C)
$
80,869
$
81,600
$
78,778
$
82,918
$
81,279
Efficiency ratio (GAAP) (A/C)
75.4
%
75.3
%
77.3
%
70.5
%
68.3
%
Efficiency ratio, excluding amortization of intangibles (non-GAAP) (B/C)
74.5
%
74.4
%
76.4
%
69.7
%
67.5
%
NET INCOME/(LOSS) ATTRIBUTABLE TO THE COMPANY:
Net income/(loss) attributable to the Company (GAAP)
$
22,680
$
(3,298
)
$
800
$
21,244
$
19,962
LESS: Gain on fair value of contingent considerations receivable 15
891
—
—
1,109
—
Tax effect at statutory rate
258
—
—
322
—
Net income/(loss) attributable to the Company (non-GAAP)
$
22,047
$
(3,298
)
$
800
$
20,457
$
19,962
NET INCOME/(LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS:
Net income/(loss) attributable to common shareholders (GAAP)
$
22,680
$
(3,298
)
$
1,214
$
21,342
$
20,266
LESS: Gain on fair value of contingent considerations receivable 15
891
—
—
1,109
—
Tax effect at statutory rate
258
—
—
322
—
Net income/(loss) attributable to the common shareholders, treasury stock method, excluding notable items (non-GAAP)
$
22,047
$
(3,298
)
$
1,214
$
20,555
$
20,266
Weighted average diluted shares outstanding
82,362,338
81,929,752
83,318,041
83,637,786
83,956,708
Diluted earnings/(loss) per share (GAAP)
$
0.28
$
(0.04
)
$
0.01
$
0.26
$
0.24
Diluted earnings/(loss) per share, excluding notable items (non-GAAP)
$
0.27
$
(0.04
)
$
0.01
$
0.25
$
0.24
Average common equity (non-GAAP)
$
842,606
$
834,882
$
838,935
$
818,816
$
807,890
Average tangible common equity (non-GAAP)
$
776,360
$
768,005
$
771,349
$
750,785
$
739,531
ROACE, excluding notable items (non-GAAP)
10.38
%
(1.58
)%
0.39
%
9.91
%
9.80
%
ROATCE, excluding notable items (non-GAAP)
11.55
%
(1.43
)%
0.72
%
11.09
%
10.99
%
Pre-tax, pre-provision income (non-GAAP)
$
19,932
$
20,147
$
17,870
$
24,461
$
25,742
LESS: Gain on fair value of contingent considerations receivable 15
891
—
—
1,109
—
Pre-tax, pre-provision income, excluding notable items (non-GAAP)
$
19,041
$
20,147
$
17,870
$
23,352
$
25,742
15 In the third quarter of 2020 and fourth quarter of 2019, there was a gain of $0.9 million and $1.1 million , respectively, related to the revaluation of a receivable from the divestiture of former affiliate, Bingham, Osborn & Scarborough, LLC ("BOS").