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Boston Private Financial Holdings Inc. Reports Operating Results (10-Q)

August 06, 2010 | About:
10qk

10qk

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Boston Private Financial Holdings Inc. (BPFH) filed Quarterly Report for the period ended 2010-06-30.

Boston Private Financial Holdings Inc. has a market cap of $481.7 million; its shares were traded at around $6.49 with and P/S ratio of 1.7. The dividend yield of Boston Private Financial Holdings Inc. stocks is 0.6%.BPFH is in the portfolios of Chuck Royce of Royce& Associates, Kenneth Fisher of Fisher Asset Management, LLC, Steven Cohen of SAC Capital Advisors.

Highlight of Business Operations:

Net Income/ (Loss). The Company recorded net income from continuing operations for the three and six months ended June 30, 2010 of $0.2 million and $6.0 million respectively, compared to a net loss of $0.1 million for the three months ended June 30, 2009, and net income of $4.1 million for the six months ended June 30, 2009. Net income attributable to the Company, which includes income from both continuing and discontinued operations, for the three and six months ended June 30, 2010 was $1.1 million and $6.2 million respectively, compared to net losses of $8.5 million and $5.6 million for the same periods in 2009.

The Company recognized losses per share from continuing operations for the three and six months ended June 30, 2010 of $0.09 per share and $0.07 per share, respectively, compared to losses of $0.13 per share and $0.21 per share for the same periods in 2009. Losses per share attributable to the common shareholders, which includes both continuing and discontinued operations, for the three and six months ended June 30, 2010 were $0.07 per share and $0.05 per share, respectively, compared to losses of $0.24 per share and $0.33 per share for the same periods in 2009. Net income/ (loss) from continuing operations in both 2010 and 2009 was offset by charges that reduce income available to common shareholders.

Charges that reduce income available to common shareholders include preferred dividends and charges that are accounted for as preferred dividends such as the accretion of discounts and beneficial conversion features on preferred stock and the amounts related to the change in redemption value of noncontrolling interests. These charges decreased $1.9 million to $6.2 million in the second quarter of 2010 from $8.1 million for the same period in 2009. For the six months ended June 30, 2010, these charges decreased $6.9 million to $9.6 million from $16.5 million for the same period in 2009. The decreases for both the three and six month periods was primarily due to the accretion of the beneficial conversion feature of the Series B Preferred stock, which was fully accreted as of December 31, 2009, and the acquisition of the remaining 19% interest in KLS, which affected the change in redemption value of noncontrolling interests. These decreases were partially offset by the accelerated accretion of the discount on the Series C Preferred stock in conjunction with its repurchase. The discount on the Series C Preferred stock was fully accreted as of June 30, 2010. See Part I. Item 1. Notes to Unaudited Consolidated Financial StatementsNote 2: Earnings Per Share for further detail on these charges to income available to common shareholders.

Net interest income for the three months ended June 30, 2010 was $45.0 million, an increase of $5.7 million, or 15%, compared to the same period in 2009. Net interest income for the six months ended June 30, 2010 was $89.3 million, an increase of $10.6 million, or 13%, compared to the same period in 2009. The increases for both the three and six month periods are primarily due to increased business volumes (change in average balance multiplied by the prior year average rate) which increased net interest income by $5.8 million and $10.9 million for the three and six month periods, respectively. These increases were partially offset by decreases in rates (change in average interest rate multiplied by the prior year average balance), which decreased net interest income by less than $0.1 million and $0.3 million for the three and six month periods, respectively. The NIM was 3.29% for the three months ended June 30, 2010, an increase of 15 basis points compared to the same period in 2009. For the six months ended June 30, 2010, NIM was 3.24%, an increase of 6 basis points compared to the same period in 2009. The increase in the Companys NIM for the three and six month periods compared to the same period in 2009 is a result of several factors including: decreases in rates paid on deposits, and a higher percentage of interest-bearing liabilities that have been raised in the form of lower cost deposits rather than borrowed funds.

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