Boston Private Financial Holdings saw mixed results for the period ended Sept. 30 – at least on a linked quarter basis.
Year-over-year, the holding company benefitted from its acquisition last year of Banyan Partners, which ultimately added to its assets under management.
Net income totaled $13.5 million in the third quarter, compared with $17.6 million in the second and $18.3 million in the year-ago period.
“Performance was mixed across our business segments in the third quarter,” CEO Clayton G. Deutsch said in a statement. “The private bank continued to generate strong growth within our key client segments across all of our regions while [assets under management] was lower linked quarter due to the impact of employee transitions at Boston Private Wealth, sector-based headwinds affecting the investment managers and heightened market volatility, which weighed on all segments of our wealth management business.”
Total assets under management declined to $27.4 billion in the third quarter, representing an 8 percent decline from the prior quarter and an 11 percent increase from the year-ago quarter. The year-over-year increase was attributed to the company’s acquisition of Banyan Partners and was partially offset by negative market action and net outflows. Net outflows totaled $751 million in the third quarter, compared with $193 million in the second and $211 million in the year-ago period.
Average total deposits increased 10 percent year-over-year to $5.7 billion. Average total loans increased 7 percent year-over-year to $5.6 million. The company’s average loan-to-deposit ratio stood at 96 percent at the end of the third quarter, compared with 98 percent in the year-ago period.
Growth in its commercial portfolio drove the company to beef up its provision for loan losses, recording $2.6 million in the third quarter. Net charge-offs totaled $1.6 million, compared with recoveries of $1 million and $3.3 million in the second and year-ago quarters, respectively.
Total assets increased 7 percent year-over-year to $7.2 billion.
