Boston Private Financial Holdings recorded $18 million in net income for the first quarter, compared with $15 million at year-end 2015 and $18.8 million a year ago.
“We are pleased that our company overall delivered growth in revenue and earnings,” CEO Clayton G. Deutsch said in a statement. “Our private bank produced solid performance, achieving growth goals while maintaining strong asset quality. At the same time, we continue to address challenges confronting our fee-based businesses. We remain focused on client acquisition, deepening relationships with our existing clients and driving profitability gains in all of our businesses.”
Core fees and income increased 2 percent from the linked quarter to $37.7 million reflecting higher other banking fee income. Year-over-year, that figure was down 6 percent due primarily to lower levels of assets under management.
Assets under management decreased to $26.8 billion in the first quarter, down 3 percent from $27.6 billion at year-end 2015, reflecting negative net flows partly offset by positive market action. Assets under management decreased 11 percent year-over-year due to negative net flows and negative market action. The company experienced first quarter net outflows of $761 million, compared with net outflows of $543 million and $382 million in the fourth quarter and first quarter of 2015, respectively.
Average total deposits increased 8 percent and average total loans increased 6 percent year-over-year. On a linked quarter basis, average total deposits and average total loans decreased 1 percent to $5.9 billion and $5.6 billion, respectively.
Net Interest Income for the first quarter totaled $49.9 million, up 8 percent from $46.1 million a year ago. The current quarter includes $1.1 million of interest recovered on previous nonaccrual loans while the fourth quarter and first quarter of 2015 included interest recoveries of $300,000 and $1.7 million, respectively.
The net interest margin was 2.96 percent for the first quarter, up eight basis points from 2.88 percent in the fourth quarter of 2015 and down four basis points from last year. Excluding interest recovered on previous nonaccrual loans, the net interest margin would have been up 4 basis points linked quarter and up 1 basis point year-over-year to 2.9 percent.
