Boston Private’s acquisition of Banyan Partners last October helped the company boost fee income, assets under management and total revenue in the second quarter this year.
Boston Private Financial Holdings (BPFH) posted net income of $17.6 million for the second quarter this year, compared with $18.8 million in the first quarter. Earnings per share were 20 cents, compared with 21 cents in the prior quarter and 25 cents in the year-ago quarter. In last year’s second quarter, however, the company sold off $57 million in commercial loans, resulting in a $1.6 million gain on sale of loans and a $1.2 million provision credit.
“Our integrated Private Bank and Wealth Management business reached a number of important milestones in the second quarter,” CEO Clayton G. Deutsch said in a statement. “In June, we substantially completed the integration of Banyan Partners and announced the opening of the new Boston Private Wealth headquarters at One Federal St. in Boston. Now that we have met this goal, our focus will shift full time to building our private clients business in our select markets nationally.”
Total assets under management increased 17 percent on a year-over-year basis to $29.6 billion, which the company attributed to its acquisition of Banyan Partners and organic growth. Core fees and income increased 18 percent year-over-year to $40.3 million.
BPFH recorded no provision for loan loss due to net recoveries of $1 million in the quarter and payoffs of classified loans, offset by loan growth and loan downgrades.
Net interest income declined 2 percent from the first quarter to $45.1 million. The net interest margin also declined 10 basis points from the prior quarter and 24 basis points from the year-ago quarter to 2.9 percent.
The company’s board of directors declared a cash dividend of 9 cents per share to common stock to be paid Aug. 21 to shareholders of record on Aug. 7. The board also declared a cash dividend to holders of its non-cumulative perpetual preferred stock, series D of $17.375 per share, which will result in a dividend of $0.434375 per depositary share. The record date for this dividend is Aug. 14, and the payment date is Sept. 15.
