ScovilleUnits
14 years ago
repurchased $44.5mil of it's convertible trust preferred securities
On November 23, 2009 and November 24, 2009, Boston Private Financial Holdings, Inc. (the “Company”) repurchased a total of $44.5 million of its publicly traded convertible trust preferred securities (the “Trust Preferred Securities”) issued in 2004 by Boston Private Capital Trust I, a wholly-owned subsidiary of the Company. The average price paid for the Trust Preferred Securities was approximately 56% of the par value which is a 44% discount to the original issuance price. The aggregate cost of the transactions was $24.9 million. These repurchases are expected to result in an after tax gain, including transaction fees, of approximately $10.8 million, or approximately $0.16 per share in the fourth quarter of 2009. Although currently not anticipated in the near future, the Company may, from time to time, and subject to applicable regulatory approvals, make additional repurchases of the Trust Preferred Securities, depending on market conditions and liquidity.
The Company’s rationale for repurchasing the Trust Preferred Securities at this time was to take advantage of the discount at which the Trust Preferred Securities were trading in the market. Accordingly, as required under the terms of the TARP Capital Purchase Program agreements, the Company sought and obtained consent of the U.S. Treasury for repurchases at a cost of up to $25 million. The gain on the transactions increases the Company’s Tangible Common Equity to Tangible Assets ratio by approximately 22 basis points. The funds for the repurchases came from the Company’s liquid assets which were approximately $231 million at September 30, 2009. In addition, the Company will save approximately $1.3 million in interest expense, net of tax, annually from the repurchases, or approximately $0.02 per share.
The Company uses certain non-GAAP financial measures, such as the Tangible Common Equity to Tangible Assets ratio, to provide information for investors to effectively analyze financial trends of ongoing business activities, and to enhance comparability with peers across the financial sector. A reconciliation from the Company’s GAAP Total Equity to Total Assets ratio to the Non-GAAP Tangible Common Equity to Tangible Assets ratio is presented below:
8-K ~ http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=6629932
ScovilleUnits
15 years ago
BPFH & Westfield Capital Agree to Accelerate Purchase Option
Tuesday , October 06, 2009 16:35ET
BOSTON, Oct 06, 2009 (BUSINESS WIRE) -- Boston Private Financial Holdings, Inc. (NASDAQ: BPFH) today announced an agreement whereby the management team of Westfield Capital Management will complete the purchase of that firm now, instead of in 2014 as contemplated in a previously-announced agreement. In exchange, BPFH will receive approximately $59 million in initial proceeds and retain a 12.5 percent revenue share in Westfield for eight years.
The key elements of this transaction, subject to the provisions of the agreement, include:
-- $54 million in cash at closing plus a $5 million note due in one year.
-- Retention of a 12.5 percent interest in Westfield revenues for eight years.
-- One-time pre-tax book gain of approximately $45 million.
-- Improvement in BPFH's TCE/TA ratio by 50 basis points to 6.7%.
"Through this agreement we are able to further strengthen our capital position and yet maintain a significant earnings stream from Westfield while exiting a business that has become non-strategic," said Timothy L. Vaill, Chairman and CEO, BPFH. "By any measure, the Westfield investment has been a success for BPFH shareholders, delivering strong growth and many times over what we paid in terms of earnings. However, Westfield's expansion of its institutional money management business diverges from BPFH's core strategy of providing wealth management services to high-net-worth individuals, their families and their businesses."
William Muggia will continue to serve as President, CEO and CIO of Westfield Capital Management following the close of the transaction. The firm's management and personnel will not change and the company will remain headquartered in Boston. Mr. Muggia said, "We have enjoyed our long and fruitful history with Boston Private. This purchase is consistent with our previously stated goal of becoming an employee owned firm. It is important to note that current Westfield Partners are funding a significant portion of this transaction. We look forward to continuing our relationship with Boston Private on this new basis."
Concluded Vaill, "We are very proud of the success of our partnership with Westfield over the years. Under Will's leadership--and before him Arthur Bauernfeind and Mike Hazard, the founder of the firm, Westfield grew by more than 700% in assets under management and established a world-wide client base. Under this new agreement, we look forward to participating in Westfield's next round of growth and wish the very best to Will and his entire team."
The transaction is expected to close in the fourth quarter upon completion of financing and other closing conditions.
ScovilleUnits
15 years ago
BPFH Announces Sale of RINET Company, LLC
Thursday , September 17, 2009 16:46ET
BOSTON, Sep 17, 2009 (BUSINESS WIRE) -- Boston Private Financial Holdings, Inc. (NASDAQ: BPFH) today announced the sale of RINET Company, LLC, to the RINET management team. Based in Boston, RINET is a wealth advisory firm catering to very high-net-worth clients and their families. The transaction is not expected to have a material impact on BPFH earnings or its financial position.
"We are pleased to have concluded this extremely amicable transaction," said Jay Cromarty, CEO of BPFH's Wealth Advisory and Investment Management Business. "The RINET management team approached us some time ago and after considerable discussions, we both concluded that a sale of RINET back to management was in the best interest of all parties. This transaction is a good opportunity for BPFH to reallocate resources toward the growth of our other affiliates in New England and elsewhere across the country. We have nothing but the highest respect for RINET and its valuable employees and wish them great success."
Brian Rivotto will remain president and CEO of RINET and the firm's management and personnel will not be changed. RINET will remain headquartered in Boston.
"We have greatly appreciated our time as part of the BPFH family and plan to continue working together as an independent company with BPFH affiliates to serve customers throughout the New England region," said Mr. Rivotto of RINET. "This is an agreement that benefits our clients, employees, BPFH and all other stakeholders, and we look forward to continuing to provide the personalized, objective wealth advisory services our clients have come to expect from their RINET relationship."
ScovilleUnits
15 years ago
BPFH to Sell Gibraltar Private Bank & Trust for $93 Million
8-K: http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=6518825
Thursday , September 17, 2009 16:46ET
BOSTON, Sep 17, 2009 (BUSINESS WIRE) -- Boston Private Financial Holdings, Inc. (NASDAQ: BPFH) today announced that it has completed the sale of Coral Gables, Florida-based Gibraltar Private Bank & Trust for $93 million to private investors.
"This transaction improves our capital position, strengthens our balance sheet and improves our consolidated credit metrics," said Timothy L. Vaill, Chairman and CEO of BPFH. "It also increases our liquidity, creating flexibility that opens up a variety of options such as reallocating capital to our strongest performers to drive organic growth, reducing debt, and optimizing our capital structure."
The key elements of the Gibraltar Private sale include the following:
-- $93 million in cash proceeds
-- $1.4 billion reduction in total assets, boosting BPFH's key TCE/TA ratio by approximately 100 basis points to 6.2 percent (1)
-- $50 million reduction of non-performing assets, a 34% decline(1)
-- $91 million reduction in classified loans, a 39% decline(1)
-- One-time book loss of approximately $35 million, with a $17 million reduction to tangible capital(2)
"While Gibraltar has outperformed many of its South Florida peers, the market continues to experience economic stress with a long-term projected recovery. This sale enables BPFH to exit the Florida market while receiving fair value for our investment. We wish Gibraltar's CEO Steve Hayworth and his new private investors all the best for the future," Vaill added.
Gibraltar Private CEO Steve Hayworth will continue to serve as Gibraltar Private's CEO; bank personnel and management will also remain. The bank will continue to be headquartered in Coral Gables and retain its branch office in New York.
Footnotes
(1) June, 30, 2009 financials as reported adjusted (i) to exclude Gibraltar Private Bank financial results as of 6/30/09, and (ii) to include the net cash received as of the transaction date.
A reconciliation of Company's GAAP Total Equity to Total Assets ratio to the Non-GAAP Tangible Common Equity to Tangible Assets ratio is presented below:
The Company calculates tangible common equity by adjusting total equity to exclude goodwill and intangible assets as well as equity received from the TARP funding of $154 million. The Company calculates tangible assets by adjusting total assets to exclude goodwill and intangible assets. The Company uses certain non-GAAP financial measures, such as the Tangible Common Equity to Tangible Assets ratio, to provide information for investors to effectively analyze financial trends of ongoing business activities, and to enhance comparability with peers across the financial sector. June 30, 2009 June 30, 2009
As Reported Pro Forma (1)
Total Balance Sheet Assets $ 7,260,654 $ 5,838,647
LESS: Goodwill and intangible assets, Net (168,064 ) (151,158 )
Tangible Assets (non-GAAP) 7,092,590 5,687,489
Total Equity 648,035 614,531
LESS: Goodwill and intangible assets, Net (168,064 ) (151,158 )
TARP funding (154,000 ) (154,000 )
ADD: Difference between redemption value of 44,181 44,181
non-controlling
interests and value under ARB 51
Total adjusting items (277,883 ) (260,977 )
Tangible Common Equity 370,152 353,554
(non-GAAP)
Total Equity/Total Assets 8.93 % 10.53 %
Tangible Common Equity/ 5.22 % 6.22 %
Tangible Assets (non-GAAP)(2) Excludes transaction costs of approximately $2.5 million.
Conference Call
Management will hold a conference call at 9:00 a.m. Eastern Time on Friday, September 18, to discuss the transaction in more detail. To access the call:
Dial In #: (866) 362-4831 International Dial In #: (617) 597-5347 Passcode: 16154461
Replay Information: Available from 9/18/2009 to 9/25/2009 Dial In #: (888) 286-8010 International Dial In #: (617) 801-6888 Passcode: 27439348
Boston Private Financial Holdings
Boston Private Financial Holdings is a national financial services organization comprised of independently operated affiliates located in key regions of the U.S. that offer private banking, wealth advisory and investment management services to the high net worth marketplace, selected businesses and institutions. The Company enters demographically attractive markets through a very selective acquisition process and then expands by way of organic growth. It employs a distinct business strategy, empowering its affiliates to run independently such that they can best serve their clients at the local level, while at the same time providing strategic oversight and access to resources, both financial and intellectual, to support management, compliance, legal, marketing, and operations. (NASDAQ: BPFH).
ScovilleUnits
15 years ago
New 52-Wk Low @ $3.840 dn 13.51%
(And soooo, the dividend is over, aye?)
Tuesday , February 10, 2009 11:50ET
This is the 1st 52 WEEK LOW alert for BPFH in the past 7 calendar days.
The share price for Boston Private Financial Holdings Inc (NASDAQ NM: BPFH) reached a new 52-week low today, trading at $3.840, down $-0.600 (-13.51%) from its previous close of $4.440.
The Company's previous 52-week low of $3.868 was set 19 days ago on January 22, 2009.
One year ago, the Company's shares closed at $21.050. The price has declined more than 81 percent since then.
At the time of this alert, the stock had traded 335,433 shares via 1,223 trades, 45.32% below it's 20day average of 613,440 shares.
This new 52-week low currently puts the stock:
18.94% below its 20day Moving Average of $4.737
30.92% below its 50day Moving Average of $5.559
44.30% below its 100day Moving Average of $6.894
The Company last released news on January 28, 2009:
"Boston Private Financial Holdings Reports Fourth Quarter Results"
BOSTON PRIVATE FINANCIAL HOLDINGS INC
Private Banking, Investment Management & Wealth Advisory.
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