|
|
Commonwealth of Massachusetts
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04-2976299
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(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer
Identification Number)
|
|
|
Ten Post Office Square
Boston, Massachusetts
|
02109
|
(Address of principal executive offices)
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(Zip Code)
|
|
|
Registrant's telephone number, including area code: (888) 666-1363
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Large accelerated filer
o
|
|
|
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Accelerated filer
x
|
Non-accelerated filer
o
|
|
(Do not check if a Smaller reporting company)
|
|
Smaller reporting company
o
|
Common Stock-Par Value $1.00
|
78,031,321
|
(class)
|
(outstanding)
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PART I—FINANCIAL INFORMATION
|
|||
Item 1
|
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Item 2
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Item 3
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|
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Item 4
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|
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PART II—OTHER INFORMATION
|
|||
Item 1
|
|
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Item 1A
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|
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Item 2
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|
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Item 3
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Item 4
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|
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Item 5
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Item 6
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Certifications
|
|
|
June 30, 2011
|
|
December 31, 2010
|
||||
|
(In thousands, except share and per share data)
|
||||||
Assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
472,555
|
|
|
$
|
494,439
|
|
Investment securities:
|
|
|
|
||||
Available for sale (amortized cost of $783,562 and $789,471 at June 30, 2011 and December 31, 2010, respectively)
|
793,622
|
|
|
795,438
|
|
||
Held to maturity (fair value of $0 and $2,497 at June 30, 2011 and December 31, 2010, respectively)
|
—
|
|
|
2,515
|
|
||
Total investment securities
|
793,622
|
|
|
797,953
|
|
||
Loans held for sale
|
4,625
|
|
|
9,145
|
|
||
Total loans
|
4,409,440
|
|
|
4,480,347
|
|
||
Less: Allowance for loan losses
|
98,742
|
|
|
98,403
|
|
||
Net loans
|
4,310,698
|
|
|
4,381,944
|
|
||
Other real estate owned (“OREO”)
|
14,485
|
|
|
12,925
|
|
||
Stock in Federal Home Loan Banks
|
44,785
|
|
|
45,846
|
|
||
Premises and equipment, net
|
27,279
|
|
|
26,642
|
|
||
Goodwill
|
115,038
|
|
|
115,051
|
|
||
Intangible assets, net
|
32,913
|
|
|
36,161
|
|
||
Fees receivable
|
8,481
|
|
|
8,213
|
|
||
Accrued interest receivable
|
16,881
|
|
|
16,707
|
|
||
Income tax receivable and deferred
|
83,163
|
|
|
84,641
|
|
||
Other assets
|
112,253
|
|
|
123,234
|
|
||
Total assets
|
$
|
6,036,778
|
|
|
$
|
6,152,901
|
|
Liabilities:
|
|
|
|
||||
Deposits
|
$
|
4,551,319
|
|
|
$
|
4,486,726
|
|
Securities sold under agreements to repurchase
|
122,448
|
|
|
258,598
|
|
||
Federal Home Loan Bank borrowings
|
523,695
|
|
|
575,682
|
|
||
Junior subordinated debentures
|
188,645
|
|
|
193,645
|
|
||
Other liabilities
|
90,491
|
|
|
99,774
|
|
||
Total liabilities
|
5,476,598
|
|
|
5,614,425
|
|
||
Redeemable Noncontrolling Interests
|
21,210
|
|
|
19,598
|
|
||
The Company’s Stockholders’ Equity:
|
|
|
|
||||
Preferred stock, $1.00 par value; authorized: 2,000,000 shares;
|
|
|
|
||||
Series B, issued and outstanding (contingently convertible): 401 shares at June 30, 2011 and December 31, 2010; liquidation value: $100,000 per share
|
58,089
|
|
|
58,089
|
|
||
Common stock, $1.00 par value; authorized: 170,000,000 shares; issued and outstanding: 77,942,074 shares at June 30, 2011 and 76,307,329 shares at December 31, 2010
|
77,942
|
|
|
76,307
|
|
||
Additional paid-in capital
|
654,297
|
|
|
652,288
|
|
||
Accumulated deficit
|
(254,758
|
)
|
|
(269,154
|
)
|
||
Accumulated other comprehensive income
|
3,400
|
|
|
1,348
|
|
||
Total stockholders’ equity
|
538,970
|
|
|
518,878
|
|
||
Total liabilities, redeemable noncontrolling interests and stockholders’ equity
|
$
|
6,036,778
|
|
|
$
|
6,152,901
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2011
|
|
2010
|
|
2011
|
|
2010
|
||||||||
|
(In thousands, except share and per share data)
|
||||||||||||||
Interest and dividend income:
|
|
|
|
|
|
|
|
||||||||
Loans
|
$
|
54,565
|
|
|
$
|
57,434
|
|
|
$
|
107,123
|
|
|
$
|
115,300
|
|
Taxable investment securities
|
1,391
|
|
|
1,624
|
|
|
2,770
|
|
|
3,129
|
|
||||
Non-taxable investment securities
|
930
|
|
|
1,262
|
|
|
2,031
|
|
|
2,587
|
|
||||
Mortgage-backed securities
|
1,841
|
|
|
1,894
|
|
|
3,648
|
|
|
4,326
|
|
||||
Federal funds sold and other
|
283
|
|
|
277
|
|
|
604
|
|
|
720
|
|
||||
Total interest and dividend income
|
59,010
|
|
|
62,491
|
|
|
116,176
|
|
|
126,062
|
|
||||
Interest expense:
|
|
|
|
|
|
|
|
||||||||
Deposits
|
6,301
|
|
|
9,381
|
|
|
12,951
|
|
|
20,011
|
|
||||
Federal Home Loan Bank borrowings
|
4,261
|
|
|
5,073
|
|
|
8,653
|
|
|
10,489
|
|
||||
Junior subordinated debentures
|
1,905
|
|
|
2,504
|
|
|
3,797
|
|
|
4,994
|
|
||||
Other short-term borrowings
|
519
|
|
|
516
|
|
|
1,040
|
|
|
1,241
|
|
||||
Total interest expense
|
12,986
|
|
|
17,474
|
|
|
26,441
|
|
|
36,735
|
|
||||
Net interest income
|
46,024
|
|
|
45,017
|
|
|
89,735
|
|
|
89,327
|
|
||||
Provision/ (credit) for loan losses
|
(2,190
|
)
|
|
14,962
|
|
|
11,160
|
|
|
22,577
|
|
||||
Net interest income/(loss) after provision for loan losses
|
48,214
|
|
|
30,055
|
|
|
78,575
|
|
|
66,750
|
|
||||
Fees and other income:
|
|
|
|
|
|
|
|
||||||||
Investment management and trust fees
|
16,337
|
|
|
15,262
|
|
|
32,420
|
|
|
30,231
|
|
||||
Wealth advisory fees
|
10,277
|
|
|
9,304
|
|
|
20,348
|
|
|
18,562
|
|
||||
Other banking fee income
|
1,287
|
|
|
1,264
|
|
|
2,520
|
|
|
2,441
|
|
||||
Gain on repurchase of debt
|
1,838
|
|
|
—
|
|
|
1,838
|
|
|
—
|
|
||||
Gain on sale of investments, net
|
168
|
|
|
987
|
|
|
586
|
|
|
2,419
|
|
||||
Gain on sale of loans, net
|
1,125
|
|
|
500
|
|
|
1,511
|
|
|
958
|
|
||||
Gain/(loss) on OREO, net
|
844
|
|
|
(1,611
|
)
|
|
954
|
|
|
(2,020
|
)
|
||||
Other
|
437
|
|
|
(73
|
)
|
|
2,230
|
|
|
470
|
|
||||
Total fees and other income
|
32,313
|
|
|
25,633
|
|
|
62,407
|
|
|
53,061
|
|
||||
Operating expense:
|
|
|
|
|
|
|
|
||||||||
Salaries and employee benefits
|
35,867
|
|
|
34,653
|
|
|
72,639
|
|
|
68,501
|
|
||||
Occupancy and equipment
|
7,431
|
|
|
6,696
|
|
|
14,774
|
|
|
13,482
|
|
||||
Professional services
|
5,314
|
|
|
4,324
|
|
|
10,497
|
|
|
9,168
|
|
||||
Marketing and business development
|
1,896
|
|
|
2,042
|
|
|
3,359
|
|
|
3,553
|
|
||||
Contract services and data processing
|
1,388
|
|
|
1,437
|
|
|
2,710
|
|
|
2,763
|
|
||||
Amortization of intangibles
|
1,450
|
|
|
1,339
|
|
|
2,662
|
|
|
2,669
|
|
||||
FDIC insurance
|
1,294
|
|
|
2,266
|
|
|
3,530
|
|
|
4,353
|
|
||||
Restructuring expense
|
4,304
|
|
|
—
|
|
|
6,286
|
|
|
—
|
|
||||
Other
|
3,521
|
|
|
3,908
|
|
|
7,713
|
|
|
8,209
|
|
||||
Total operating expense
|
62,465
|
|
|
56,665
|
|
|
124,170
|
|
|
112,698
|
|
||||
Income/(loss) before income taxes
|
18,062
|
|
|
(977
|
)
|
|
16,812
|
|
|
7,113
|
|
||||
Income tax expense/(benefit)
|
4,229
|
|
|
(1,202
|
)
|
|
4,051
|
|
|
1,134
|
|
||||
Net income/(loss) from continuing operations
|
13,833
|
|
|
225
|
|
|
12,761
|
|
|
5,979
|
|
||||
Net income/(loss) from discontinued operations
|
1,516
|
|
|
1,509
|
|
|
3,186
|
|
|
1,545
|
|
||||
Net income/(loss) before attribution to noncontrolling interests
|
15,349
|
|
|
1,734
|
|
|
15,947
|
|
|
7,524
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2011
|
|
2010
|
|
2011
|
|
2010
|
||||||||
|
(In thousands, except share and per share data)
|
||||||||||||||
Less: Net income/ (loss) attributable to noncontrolling interests
|
804
|
|
|
616
|
|
|
1,551
|
|
|
1,301
|
|
||||
Net income/(loss) attributable to the Company
|
$
|
14,545
|
|
|
$
|
1,118
|
|
|
$
|
14,396
|
|
|
$
|
6,223
|
|
Adjustments to net income/(loss) attributable to the Company to arrive at net income/(loss) attributable to common stockholders
|
$
|
(199
|
)
|
|
$
|
(6,160
|
)
|
|
$
|
(475
|
)
|
|
$
|
(9,628
|
)
|
Net income/(loss) attributable to common stockholders for earnings/(loss) per share calculation
|
$
|
14,346
|
|
|
$
|
(5,042
|
)
|
|
$
|
13,921
|
|
|
$
|
(3,405
|
)
|
Basic earnings/(loss) per share attributable to common stockholders:
|
|
|
|
|
|
|
|
||||||||
From continuing operations:
|
$
|
0.17
|
|
|
$
|
(0.09
|
)
|
|
$
|
0.15
|
|
|
$
|
(0.07
|
)
|
From discontinued operations:
|
$
|
0.02
|
|
|
$
|
0.02
|
|
|
$
|
0.04
|
|
|
$
|
0.02
|
|
Total attributable to common stockholders:
|
$
|
0.19
|
|
|
$
|
(0.07
|
)
|
|
$
|
0.19
|
|
|
$
|
(0.05
|
)
|
Weighted average basic common shares outstanding
|
75,194,687
|
|
|
68,787,389
|
|
|
74,934,058
|
|
|
68,331,183
|
|
||||
Diluted earnings/(loss) per share attributable to common stockholders:
|
|
|
|
|
|
|
|
||||||||
From continuing operations:
|
$
|
0.15
|
|
|
$
|
(0.09
|
)
|
|
$
|
0.13
|
|
|
$
|
(0.07
|
)
|
From discontinued operations:
|
$
|
0.02
|
|
|
$
|
0.02
|
|
|
$
|
0.04
|
|
|
$
|
0.02
|
|
Total attributable to common stockholders:
|
$
|
0.17
|
|
|
$
|
(0.07
|
)
|
|
$
|
0.17
|
|
|
$
|
(0.05
|
)
|
Weighted average diluted common shares outstanding
|
83,264,842
|
|
|
68,787,389
|
|
|
83,114,698
|
|
|
68,331,183
|
|
|
Common
Stock
|
|
Preferred
Stock
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings/
(Accumulated
Deficit)
|
|
Accumulated
Other
Comprehensive
Income/
(Loss)
|
|
Total
|
||||||||||||
|
(In thousands, except share data)
|
||||||||||||||||||||||
Balance at December 31, 2009
|
$
|
68,666
|
|
|
$
|
204,101
|
|
|
$
|
629,001
|
|
|
$
|
(258,186
|
)
|
|
$
|
7,572
|
|
|
$
|
651,154
|
|
Comprehensive Income/ (Loss):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income/(loss) attributable to the Company
|
—
|
|
|
—
|
|
|
—
|
|
|
6,223
|
|
|
—
|
|
|
6,223
|
|
||||||
Other comprehensive income/ (loss), net:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Change in unrealized gain/ (loss) on securities available for sale, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,619
|
|
|
1,619
|
|
||||||
Change in unrealized gain/ (loss) on cash flow hedge, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,274
|
)
|
|
(1,274
|
)
|
||||||
Change in unrealized gain/ (loss) on other, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||||
Total comprehensive income/ (loss) attributable to the Company, net
|
|
|
|
|
|
|
|
|
|
|
6,569
|
|
|||||||||||
Dividends paid to common stockholders
|
—
|
|
|
—
|
|
|
(1,378
|
)
|
|
—
|
|
|
—
|
|
|
(1,378
|
)
|
||||||
Dividends paid to preferred stockholders
|
—
|
|
|
—
|
|
|
(2,954
|
)
|
|
—
|
|
|
—
|
|
|
(2,954
|
)
|
||||||
Net proceeds from issuance of:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
562,481 shares of common stock
|
563
|
|
|
—
|
|
|
3,176
|
|
|
—
|
|
|
—
|
|
|
3,739
|
|
||||||
4,715,000 shares of common stock in June 2010 public offering
|
4,715
|
|
|
—
|
|
|
22,322
|
|
|
—
|
|
|
—
|
|
|
27,037
|
|
||||||
870,787 shares through incentive stock grants
|
871
|
|
|
—
|
|
|
(871
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Carlyle gross up rights equity receivable
|
—
|
|
|
—
|
|
|
6,268
|
|
|
—
|
|
|
—
|
|
|
6,268
|
|
||||||
Repurchase of 154,000 shares of Series C Preferred Stock
|
—
|
|
|
(154,000
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(154,000
|
)
|
||||||
Accretion of discount on Series C Preferred stock
|
—
|
|
|
7,988
|
|
|
(7,988
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Amortization of stock compensation and employee stock purchase plan
|
—
|
|
|
—
|
|
|
2,367
|
|
|
—
|
|
|
—
|
|
|
2,367
|
|
||||||
Stock options exercised
|
10
|
|
|
—
|
|
|
34
|
|
|
—
|
|
|
—
|
|
|
44
|
|
||||||
Tax deficiency from certain stock compensation awards
|
—
|
|
|
—
|
|
|
(974
|
)
|
|
—
|
|
|
—
|
|
|
(974
|
)
|
||||||
Other equity adjustments
|
—
|
|
|
—
|
|
|
2,792
|
|
|
2
|
|
|
—
|
|
|
2,794
|
|
||||||
Balance at June 30, 2010
|
$
|
74,825
|
|
|
$
|
58,089
|
|
|
$
|
651,795
|
|
|
$
|
(251,961
|
)
|
|
$
|
7,918
|
|
|
$
|
540,666
|
|
(Continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
Stock
|
|
Preferred
Stock
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings/
(Accumulated
Deficit)
|
|
Accumulated
Other
Comprehensive
Income/
(Loss)
|
|
Total
|
||||||||||||
|
(In thousands, except share data)
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance at December 31, 2010
|
$
|
76,307
|
|
|
$
|
58,089
|
|
|
$
|
652,288
|
|
|
$
|
(269,154
|
)
|
|
$
|
1,348
|
|
|
$
|
518,878
|
|
Comprehensive Income/ (Loss):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income/(loss) attributable to the Company
|
—
|
|
|
—
|
|
|
—
|
|
|
14,396
|
|
|
—
|
|
|
14,396
|
|
||||||
Other comprehensive income/ (loss), net:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Change in unrealized gain/ (loss) on securities available for sale, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,572
|
|
|
2,572
|
|
||||||
Change in unrealized gain/ (loss) on cash flow hedges, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(564
|
)
|
|
(564
|
)
|
||||||
Change in unrealized gain/ (loss) on other, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
44
|
|
|
44
|
|
||||||
Total comprehensive income/ (loss) attributable to the Company, net
|
|
|
|
|
|
|
|
|
|
|
16,448
|
|
|||||||||||
Dividends paid to common stockholders
|
—
|
|
|
—
|
|
|
(1,540
|
)
|
|
—
|
|
|
—
|
|
|
(1,540
|
)
|
||||||
Dividends paid to preferred stockholders
|
—
|
|
|
—
|
|
|
(145
|
)
|
|
—
|
|
|
—
|
|
|
(145
|
)
|
||||||
Net proceeds from issuance of:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
711,399 shares of common stock
|
711
|
|
|
—
|
|
|
4,170
|
|
|
—
|
|
|
—
|
|
|
4,881
|
|
||||||
Incentive common stock, net of cancellations and forfeitures
|
893
|
|
|
—
|
|
|
(893
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Amortization of stock compensation and employee stock purchase plan
|
—
|
|
|
—
|
|
|
3,249
|
|
|
—
|
|
|
—
|
|
|
3,249
|
|
||||||
Stock options exercised
|
31
|
|
|
—
|
|
|
130
|
|
|
—
|
|
|
—
|
|
|
161
|
|
||||||
Tax deficiency from certain stock compensation awards
|
—
|
|
|
—
|
|
|
(1,484
|
)
|
|
—
|
|
|
—
|
|
|
(1,484
|
)
|
||||||
Other equity adjustments
|
—
|
|
|
—
|
|
|
(1,478
|
)
|
|
—
|
|
|
—
|
|
|
(1,478
|
)
|
||||||
Balance at June 30, 2011
|
$
|
77,942
|
|
|
$
|
58,089
|
|
|
$
|
654,297
|
|
|
$
|
(254,758
|
)
|
|
$
|
3,400
|
|
|
$
|
538,970
|
|
|
Six Months Ended June 30,
|
||||||
|
2011
|
|
2010
|
||||
|
(In thousands)
|
||||||
Cash flows from operating activities:
|
|
|
|
||||
Net income/(loss) attributable to the Company
|
$
|
14,396
|
|
|
$
|
6,223
|
|
Adjustments to arrive at net income/(loss) from continuing operations
|
|
|
|
||||
Net income attributable to noncontrolling interests
|
1,551
|
|
|
1,301
|
|
||
Net (income)/loss from discontinued operations
|
(3,186
|
)
|
|
(1,545
|
)
|
||
Net income/(loss) from continuing operations
|
12,761
|
|
|
5,979
|
|
||
Adjustments to reconcile net income/(loss) from continuing operations to net cash provided by/(used in) operating activities:
|
|
|
|
||||
Depreciation and amortization
|
9,516
|
|
|
8,591
|
|
||
Net income attributable to noncontrolling interests
|
(1,551
|
)
|
|
(1,301
|
)
|
||
Equity issued as compensation
|
3,249
|
|
|
2,367
|
|
||
Provision for loan losses
|
11,160
|
|
|
22,577
|
|
||
Loans originated for sale
|
(42,775
|
)
|
|
(76,077
|
)
|
||
Proceeds from sale of loans held for sale
|
47,280
|
|
|
79,293
|
|
||
Gain on the repurchase of debt
|
(1,838
|
)
|
|
—
|
|
||
Decrease/(increase) in income tax receivable and deferred
|
1,478
|
|
|
(18,121
|
)
|
||
Net decrease/(increase) in other operating activities
|
2,625
|
|
|
(4,327
|
)
|
||
Net cash provided by/(used in) operating activities of continuing operations
|
41,905
|
|
|
18,981
|
|
||
Net cash provided by/(used in) operating activities of discontinued operations
|
3,186
|
|
|
1,545
|
|
||
Net cash provided by/(used in) operating activities
|
45,091
|
|
|
20,526
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Investment securities available for sale:
|
|
|
|
||||
Purchases
|
(354,002
|
)
|
|
(388,262
|
)
|
||
Sales
|
128,931
|
|
|
366,636
|
|
||
Maturities, redemptions, and principal payments
|
230,301
|
|
|
181,360
|
|
||
Investment securities held to maturity:
|
|
|
|
||||
Purchases
|
—
|
|
|
(9,001
|
)
|
||
Maturities, sales, and principal payments
|
—
|
|
|
10,507
|
|
||
(Investments)/distributions in trusts, net
|
(271
|
)
|
|
(164
|
)
|
||
(Purchase)/ redemption of Federal Home Loan Banks stock
|
1,061
|
|
|
549
|
|
||
Net (increase)/ decrease in portfolio loans
|
51,266
|
|
|
(216,464
|
)
|
||
Proceeds from sale of OREO
|
8,516
|
|
|
10,217
|
|
||
Proceeds from sale and repayments of non-strategic loan portfolio
|
1,000
|
|
|
184
|
|
||
Capital expenditures, net of sale proceeds
|
(3,924
|
)
|
|
(2,152
|
)
|
||
Cash received from dispositions/ (paid for acquisitions, including deferred acquisition obligations, net of cash acquired)
|
586
|
|
|
(29,691
|
)
|
||
Net cash provided by/(used in) investing activities
|
63,464
|
|
|
(76,281
|
)
|
||
|
|
|
|
|
Six Months Ended June 30,
|
||||||
|
2011
|
|
2010
|
||||
|
(In thousands)
|
||||||
Cash flows from financing activities:
|
|
|
|
||||
Net increase in deposits
|
64,593
|
|
|
125,574
|
|
||
Net (decrease)/increase in securities sold under agreements to repurchase and other
|
(136,150
|
)
|
|
(133,103
|
)
|
||
Net (decrease)/increase in federal funds purchased
|
—
|
|
|
30,000
|
|
||
Net (decrease)/increase in short-term Federal Home Loan Bank borrowings
|
(10,000
|
)
|
|
—
|
|
||
Advances of long-term Federal Home Loan Bank borrowings
|
73,708
|
|
|
46,040
|
|
||
Repayments of long-term Federal Home Loan Bank borrowings
|
(115,695
|
)
|
|
(95,432
|
)
|
||
Repurchase of debt
|
(3,000
|
)
|
|
—
|
|
||
Net proceeds from issuance/ (paid for repurchase) of Series C Preferred stock
|
—
|
|
|
(154,000
|
)
|
||
Dividends paid to common stockholders
|
(1,540
|
)
|
|
(1,378
|
)
|
||
Dividends paid to preferred stockholders
|
(145
|
)
|
|
(2,954
|
)
|
||
Tax deficiency from certain stock compensation awards
|
(1,484
|
)
|
|
(974
|
)
|
||
Proceeds from stock option exercises
|
161
|
|
|
44
|
|
||
Proceeds from issuance of common stock, net
|
591
|
|
|
27,473
|
|
||
Other equity adjustments
|
(1,478
|
)
|
|
2,794
|
|
||
Net cash provided by/(used in) financing activities
|
(130,439
|
)
|
|
(155,916
|
)
|
||
Net increase/(decrease) in cash and cash equivalents
|
(21,884
|
)
|
|
(211,671
|
)
|
||
Cash and cash equivalents at beginning of year
|
494,439
|
|
|
447,460
|
|
||
Cash and cash equivalents at end of period
|
$
|
472,555
|
|
|
$
|
235,789
|
|
Supplementary schedule of non-cash investing and financing activities:
|
|
|
|
||||
Cash paid for interest
|
$
|
25,710
|
|
|
$
|
39,765
|
|
Cash paid for income taxes, net of (refunds received)
|
11,258
|
|
|
21,113
|
|
||
Change in unrealized gain/(loss) on securities available for sale, net of tax
|
2,572
|
|
|
1,619
|
|
||
Change in unrealized gain/(loss) on cash flow hedges, net of tax
|
(564
|
)
|
|
(1,274
|
)
|
||
Change in unrealized gain/(loss) on other, net of tax
|
44
|
|
|
1
|
|
||
Non-cash transactions:
|
|
|
|
||||
Held to maturity investments transferred to available for sale or other investments at amortized cost
|
2,515
|
|
|
—
|
|
||
Loans transferred into other real estate owned from held for sale or portfolio
|
8,921
|
|
|
7,379
|
|
||
Loans transferred into/(out of) held for sale from/(to) portfolio
|
(526
|
)
|
|
—
|
|
||
Equity issued for acquisitions, including deferred acquisition obligations
|
4,290
|
|
|
3,303
|
|
||
Equity receivable related to June 18, 2010 investment agreement with Carlyle
|
—
|
|
|
6,268
|
|
|
For the three months ended June 30,
|
|
For the six months ended June 30,
|
||||||||||||
|
2011
|
|
2010
|
|
2011
|
|
2010
|
||||||||
(In thousands, except share and per share data)
|
|||||||||||||||
Basic earnings/ (loss) per share - Numerator:
|
|
|
|
|
|
|
|
||||||||
Net income/ (loss) from continuing operations
|
$
|
13,833
|
|
|
$
|
225
|
|
|
$
|
12,761
|
|
|
$
|
5,979
|
|
Less: Net income attributable to noncontrolling interests
|
804
|
|
|
616
|
|
|
1,551
|
|
|
1,301
|
|
||||
Net income/ (loss) from continuing operations attributable to the Company
|
13,029
|
|
|
(391
|
)
|
|
11,210
|
|
|
4,678
|
|
||||
Decrease/ (increase) in noncontrolling interests' redemption values (1)
|
(126
|
)
|
|
190
|
|
|
(330
|
)
|
|
1,314
|
|
||||
Accretion of discount on Series C Preferred stock (2)
|
—
|
|
|
(4,963
|
)
|
|
—
|
|
|
(7,988
|
)
|
||||
Dividends on preferred securities
|
(73
|
)
|
|
(1,387
|
)
|
|
(145
|
)
|
|
(2,954
|
)
|
||||
Total adjustments to income attributable to common stockholders
|
(199
|
)
|
|
(6,160
|
)
|
|
(475
|
)
|
|
(9,628
|
)
|
||||
Net income/ (loss) from continuing operations attributable to common stockholders
|
12,830
|
|
|
(6,551
|
)
|
|
10,735
|
|
|
(4,950
|
)
|
||||
Net income/ (loss) from discontinued operations
|
1,516
|
|
|
1,509
|
|
|
3,186
|
|
|
1,545
|
|
||||
Net income/ (loss) attributable to common stockholders
|
$
|
14,346
|
|
|
$
|
(5,042
|
)
|
|
$
|
13,921
|
|
|
$
|
(3,405
|
)
|
Basic earnings/ (loss) per share - Denominator:
|
|
|
|
|
|
|
|
||||||||
Weighted average basic common shares outstanding
|
75,194,687
|
|
|
68,787,389
|
|
|
74,934,058
|
|
|
68,331,183
|
|
||||
Per share data - Basic earnings/ (loss) per share from:
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
0.17
|
|
|
$
|
(0.09
|
)
|
|
$
|
0.15
|
|
|
$
|
(0.07
|
)
|
Discontinued operations
|
$
|
0.02
|
|
|
$
|
0.02
|
|
|
$
|
0.04
|
|
|
$
|
0.02
|
|
Total attributable to common stockholders
|
$
|
0.19
|
|
|
$
|
(0.07
|
)
|
|
$
|
0.19
|
|
|
$
|
(0.05
|
)
|
Diluted earnings/ (loss) per share - Numerator:
|
|
|
|
|
|
|
|
||||||||
Net income/ (loss) from continuing operations attributable to common stockholders
|
$
|
12,830
|
|
|
$
|
(6,551
|
)
|
|
$
|
10,735
|
|
|
$
|
(4,950
|
)
|
Dividends paid on Series B Convertible Preferred securities
|
73
|
|
|
—
|
|
|
145
|
|
|
—
|
|
||||
Net income/ (loss) from continuing operations attributable to common stockholders, after assumed dilution
|
12,903
|
|
|
(6,551
|
)
|
|
10,880
|
|
|
(4,950
|
)
|
||||
Net income/ (loss) from discontinued operations
|
1,516
|
|
|
1,509
|
|
|
3,186
|
|
|
1,545
|
|
||||
Net income/ (loss) attributable to common stockholders, after assumed dilution
|
$
|
14,419
|
|
|
$
|
(5,042
|
)
|
|
$
|
14,066
|
|
|
$
|
(3,405
|
)
|
Diluted earnings/ (loss) per share - Denominator:
|
|
|
|
|
|
|
|
||||||||
Weighted average basic common shares outstanding
|
75,194,687
|
|
|
68,787,389
|
|
|
74,934,058
|
|
|
68,331,183
|
|
||||
Dilutive effect of:
|
|
|
|
|
|
|
|
||||||||
Stock options, stock grants and other (3)
|
809,064
|
|
|
—
|
|
|
798,950
|
|
|
—
|
|
||||
Warrants to purchase common stock (3)
|
—
|
|
|
—
|
|
|
120,599
|
|
|
—
|
|
||||
Series B Convertible Preferred Stock (3)
|
7,261,091
|
|
|
—
|
|
|
7,261,091
|
|
|
—
|
|
||||
Dilutive common shares
|
8,070,155
|
|
|
—
|
|
|
8,180,640
|
|
|
—
|
|
||||
Weighted average diluted common shares outstanding (4)
|
83,264,842
|
|
|
68,787,389
|
|
|
83,114,698
|
|
|
68,331,183
|
|
||||
Per share data - Diluted earnings/ (loss) per share from:
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
$
|
0.15
|
|
|
$
|
(0.09
|
)
|
|
$
|
0.13
|
|
|
$
|
(0.07
|
)
|
Discontinued operations
|
$
|
0.02
|
|
|
$
|
0.02
|
|
|
$
|
0.04
|
|
|
$
|
0.02
|
|
Total attributable to common stockholders
|
$
|
0.17
|
|
|
$
|
(0.07
|
)
|
|
$
|
0.17
|
|
|
$
|
(0.05
|
)
|
Dividends per share declared on common stock
|
$
|
0.01
|
|
|
$
|
0.01
|
|
|
$
|
0.02
|
|
|
$
|
0.02
|
|
(1)
|
See Part II. Item 8. “Financial Statements and Supplementary Data—Note 15: Noncontrolling Interests” in the Company’s Annual Report on Form 10-K, as amended, for the year ended December 31, 2010 for a description of the redemption values related to the redeemable noncontrolling interests. In accordance with ASC 480,
Distinguishing Liabilities from Equity
(“ASC 480”), an increase in redemption values from period to period reduces income attributable to common stockholders. Decreases in redemption value from period to period increase income attributable to common stockholders, but only to the extent that the cumulative change in redemption value remains a cumulative increase since adoption of this standard in the first quarter of 2009.
|
(2)
|
See Part II. Item 8. “Financial Statements and Supplementary Data—Note 16: Equity” in the Company’s Annual Report on Form 10-K, as amended, for the year ended December 31, 2010 for a description of the Series C Preferred stock issued during 2008 that gave rise to the accretion of the discount at issuance. The accretion of the discount was accounted for similarly to a preferred stock dividend and reduced income attributable to common stockholders. The Company repurchased $50.0 million of the Series C Preferred stock in January, 2010, and repurchased the remaining $104.0 million in June, 2010. The discount on the Series C Preferred stock was therefore fully accreted as of June 30, 2010.
|
(3)
|
The diluted EPS computations for the three and six month periods ended June 30, 2011 and 2010 do not assume the conversion of the convertible trust preferred securities. The diluted EPS computations for the three and six month periods ended June 30, 2010 additionally do not assume the conversion of the Series B Preferred stock, exercise or contingent issuance of options or other dilutive securities, or the exercise of the warrants issued to an affiliate of The Carlyle Group ("Carlyle"), because the result would have been anti-dilutive. As a result of the anti-dilution, the potential common shares excluded from the diluted EPS computation are as follows:
|
|
For the three months ended June 30,
|
|
For the six months ended June 30,
|
||||||||
|
2011
|
|
2010
|
|
2011
|
|
2010
|
||||
(In thousands)
|
|||||||||||
Potential common shares from:
|
|
|
|
|
|
|
|
||||
Convertible trust preferred securities (a)
|
1,707
|
|
|
1,860
|
|
|
1,707
|
|
|
1,860
|
|
Conversion of the Series B Preferred stock (b)
|
—
|
|
|
7,261
|
|
|
—
|
|
|
7,261
|
|
Exercise or contingent issuance of options or other dilutive securities (c)
|
—
|
|
|
1,294
|
|
|
—
|
|
|
1,231
|
|
Exercise or contingent issuance of warrants (d)
|
—
|
|
|
561
|
|
|
—
|
|
|
425
|
|
Total potential common shares
|
1,707
|
|
|
10,976
|
|
|
1,707
|
|
|
10,777
|
|
|
For the three months ended June 30,
|
||||||||||||||||||||||
|
Net interest income
|
|
Non-interest income
|
|
Total revenues
|
||||||||||||||||||
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
Total Banks (1)
|
$
|
47,841
|
|
|
$
|
47,339
|
|
|
$
|
9,893
|
|
|
$
|
7,255
|
|
|
$
|
57,734
|
|
|
$
|
54,594
|
|
Total Investment Managers
|
23
|
|
|
35
|
|
|
10,323
|
|
|
9,418
|
|
|
10,346
|
|
|
9,453
|
|
||||||
Total Wealth Advisors
|
(5
|
)
|
|
(14
|
)
|
|
10,278
|
|
|
9,305
|
|
|
10,273
|
|
|
9,291
|
|
||||||
Total Segments
|
47,859
|
|
|
47,360
|
|
|
30,494
|
|
|
25,978
|
|
|
78,353
|
|
|
73,338
|
|
||||||
Holding Company and Eliminations
|
(1,835
|
)
|
|
(2,343
|
)
|
|
1,819
|
|
|
(345
|
)
|
|
(16
|
)
|
|
(2,688
|
)
|
||||||
Total Company
|
$
|
46,024
|
|
|
$
|
45,017
|
|
|
$
|
32,313
|
|
|
$
|
25,633
|
|
|
$
|
78,337
|
|
|
$
|
70,650
|
|
|
For the three months ended June 30,
|
||||||||||||||||||||||
|
Non-interest expense (2)
|
|
Income tax expense/(benefit)
|
|
Net income/(loss) from
continuing operations
|
||||||||||||||||||
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
Total Banks (1)
|
$
|
40,718
|
|
|
$
|
36,117
|
|
|
$
|
6,566
|
|
|
$
|
10
|
|
|
$
|
12,640
|
|
|
$
|
3,505
|
|
Total Investment Managers
|
7,991
|
|
|
7,483
|
|
|
818
|
|
|
582
|
|
|
1,537
|
|
|
1,388
|
|
||||||
Total Wealth Advisors
|
7,832
|
|
|
7,325
|
|
|
886
|
|
|
755
|
|
|
1,555
|
|
|
1,211
|
|
||||||
Total Segments
|
56,541
|
|
|
50,925
|
|
|
8,270
|
|
|
1,347
|
|
|
15,732
|
|
|
6,104
|
|
||||||
Holding Company and Eliminations
|
5,924
|
|
|
5,740
|
|
|
(4,041
|
)
|
|
(2,549
|
)
|
|
(1,899
|
)
|
|
(5,879
|
)
|
||||||
Total Company
|
$
|
62,465
|
|
|
$
|
56,665
|
|
|
$
|
4,229
|
|
|
$
|
(1,202
|
)
|
|
$
|
13,833
|
|
|
$
|
225
|
|
|
For the three months ended June 30,
|
||||||||||||||||||||||
|
Net income from
continuing operations
attributable to
noncontrolling interests
|
|
Net income/(loss)
attributable to
the Company (3)
|
|
Amortization of intangibles
|
||||||||||||||||||
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
Total Banks (1)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
12,640
|
|
|
$
|
3,505
|
|
|
$
|
294
|
|
|
$
|
86
|
|
Total Investment Managers
|
416
|
|
|
340
|
|
|
1,121
|
|
|
1,048
|
|
|
830
|
|
|
869
|
|
||||||
Total Wealth Advisors
|
388
|
|
|
276
|
|
|
1,167
|
|
|
935
|
|
|
326
|
|
|
357
|
|
||||||
Total Segments
|
804
|
|
|
616
|
|
|
14,928
|
|
|
5,488
|
|
|
1,450
|
|
|
1,312
|
|
||||||
Holding Company and Eliminations
|
—
|
|
|
—
|
|
|
(383
|
)
|
|
(4,370
|
)
|
|
—
|
|
|
27
|
|
||||||
Total Company
|
$
|
804
|
|
|
$
|
616
|
|
|
$
|
14,545
|
|
|
$
|
1,118
|
|
|
$
|
1,450
|
|
|
$
|
1,339
|
|
|
As of June 30,
|
||||||||||||||
|
Assets
|
|
AUM (4)
|
||||||||||||
|
2011
|
|
2010
|
|
2011
|
|
2010
|
||||||||
|
(In thousands)
|
|
(In millions)
|
||||||||||||
Total Banks (1)
|
$
|
5,825,581
|
|
|
$
|
5,661,275
|
|
|
$
|
3,739
|
|
|
$
|
3,405
|
|
Total Investment Managers
|
107,906
|
|
|
110,606
|
|
|
8,295
|
|
|
6,880
|
|
||||
Total Wealth Advisors
|
77,132
|
|
|
72,854
|
|
|
8,184
|
|
|
7,210
|
|
||||
Total Segments
|
6,010,619
|
|
|
5,844,735
|
|
|
20,218
|
|
|
17,495
|
|
||||
Holding Company and Eliminations
|
26,159
|
|
|
22,974
|
|
|
(20
|
)
|
|
(17
|
)
|
||||
Total Company
|
$
|
6,036,778
|
|
|
$
|
5,867,709
|
|
|
$
|
20,198
|
|
|
$
|
17,478
|
|
|
For the six months ended June 30,
|
||||||||||||||||||||||
|
Net interest income
|
|
Non-interest income
|
|
Total revenues
|
||||||||||||||||||
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
Total Banks (1)
|
$
|
93,350
|
|
|
$
|
93,886
|
|
|
$
|
18,493
|
|
|
$
|
16,069
|
|
|
$
|
111,843
|
|
|
$
|
109,955
|
|
Total Investment Managers
|
56
|
|
|
72
|
|
|
20,455
|
|
|
18,571
|
|
|
20,511
|
|
|
18,643
|
|
||||||
Total Wealth Advisors
|
—
|
|
|
(14
|
)
|
|
20,348
|
|
|
18,561
|
|
|
20,348
|
|
|
18,547
|
|
||||||
Total Segments
|
93,406
|
|
|
93,944
|
|
|
59,296
|
|
|
53,201
|
|
|
152,702
|
|
|
147,145
|
|
||||||
Holding Company and Eliminations
|
(3,671
|
)
|
|
(4,617
|
)
|
|
3,111
|
|
|
(140
|
)
|
|
(560
|
)
|
|
(4,757
|
)
|
||||||
Total Company
|
$
|
89,735
|
|
|
$
|
89,327
|
|
|
$
|
62,407
|
|
|
$
|
53,061
|
|
|
$
|
152,142
|
|
|
$
|
142,388
|
|
|
For the six months ended June 30,
|
||||||||||||||||||||||
|
Non-interest expense (2)
|
|
Income tax expense/(benefit)
|
|
Net income/(loss) from
continuing operations
|
||||||||||||||||||
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
Total Banks (1)
|
$
|
78,992
|
|
|
$
|
71,410
|
|
|
$
|
6,292
|
|
|
$
|
3,884
|
|
|
$
|
15,399
|
|
|
$
|
12,084
|
|
Total Investment Managers
|
15,876
|
|
|
14,787
|
|
|
1,555
|
|
|
1,412
|
|
|
3,080
|
|
|
2,444
|
|
||||||
Total Wealth Advisors
|
15,925
|
|
|
14,649
|
|
|
1,583
|
|
|
1,457
|
|
|
2,840
|
|
|
2,441
|
|
||||||
Total Segments
|
110,793
|
|
|
100,846
|
|
|
9,430
|
|
|
6,753
|
|
|
21,319
|
|
|
16,969
|
|
||||||
Holding Company and Eliminations
|
13,377
|
|
|
11,852
|
|
|
(5,379
|
)
|
|
(5,619
|
)
|
|
(8,558
|
)
|
|
(10,990
|
)
|
||||||
Total Company
|
$
|
124,170
|
|
|
$
|
112,698
|
|
|
$
|
4,051
|
|
|
$
|
1,134
|
|
|
$
|
12,761
|
|
|
$
|
5,979
|
|
|
For the six months ended June 30,
|
||||||||||||||||||||||
|
Net income from
continuing operations
attributable to
noncontrolling interests
|
|
Net income/(loss)
attributable to
the Company (3)
|
|
Amortization of intangibles
|
||||||||||||||||||
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
Total Banks (1)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
15,399
|
|
|
$
|
12,084
|
|
|
$
|
351
|
|
|
$
|
173
|
|
Total Investment Managers
|
796
|
|
|
703
|
|
|
2,284
|
|
|
1,741
|
|
|
1,659
|
|
|
1,738
|
|
||||||
Total Wealth Advisors
|
755
|
|
|
598
|
|
|
2,085
|
|
|
1,843
|
|
|
652
|
|
|
705
|
|
||||||
Total Segments
|
1,551
|
|
|
1,301
|
|
|
19,768
|
|
|
15,668
|
|
|
2,662
|
|
|
2,616
|
|
||||||
Holding Company and Eliminations
|
—
|
|
|
—
|
|
|
(5,372
|
)
|
|
(9,445
|
)
|
|
—
|
|
|
53
|
|
||||||
Total Company
|
$
|
1,551
|
|
|
$
|
1,301
|
|
|
$
|
14,396
|
|
|
$
|
6,223
|
|
|
$
|
2,662
|
|
|
$
|
2,669
|
|
(1)
|
In the second quarter of 2011, the Company merged its four Private Banking affiliates into one bank operating under the charter of Boston Private Bank. See Part I. Item 1. "Notes to Unaudited Consolidated Financial Statements - Note 1: Basis of Presentation and Summary of Significant Accounting Policies" for additional details.
|
(2)
|
Non-interest expense for the three and six months ended
June 30, 2011
includes
$4.3 million
and
$6.3 million
, respectively, of restructuring expense.
|
(3)
|
Net income/ (loss) from discontinued operations for the three months ended
June 30, 2011
, and
2010
of
$1.5 million
, and
$1.5 million
, respectively and for the six months ended
June 30, 2011
, and
2010
, of
$3.2 million
and
$1.5 million
, respectively, are included in Holding Company and Eliminations in the calculation of net loss attributable to the Company.
|
(4)
|
"AUM" represents Assets Under Management and Advisory at the affiliates.
|
|
Amortized
Cost
|
|
Unrealized
|
|
Fair
Value
|
||||||||||
Gains
|
|
Losses
|
|
||||||||||||
(In thousands)
|
|||||||||||||||
At June 30, 2011:
|
|
|
|
|
|
|
|
||||||||
Available for sale securities at fair value:
|
|
|
|
|
|
|
|
||||||||
U.S. government and agencies
|
$
|
6,811
|
|
|
$
|
5
|
|
|
$
|
(62
|
)
|
|
$
|
6,754
|
|
Government-sponsored entities
|
345,631
|
|
|
1,445
|
|
|
(380
|
)
|
|
346,696
|
|
||||
Corporate bonds
|
13,684
|
|
|
195
|
|
|
—
|
|
|
13,879
|
|
||||
Municipal bonds
|
185,987
|
|
|
3,321
|
|
|
(117
|
)
|
|
189,191
|
|
||||
Mortgage backed securities (1)
|
228,203
|
|
|
5,711
|
|
|
(213
|
)
|
|
233,701
|
|
||||
Other
|
3,246
|
|
|
180
|
|
|
(25
|
)
|
|
3,401
|
|
||||
Total
|
$
|
783,562
|
|
|
$
|
10,857
|
|
|
$
|
(797
|
)
|
|
$
|
793,622
|
|
|
|
|
|
|
|
|
|
||||||||
At December 31, 2010:
|
|
|
|
|
|
|
|
||||||||
Available for sale securities at fair value:
|
|
|
|
|
|
|
|
||||||||
U.S. government and agencies
|
$
|
81,444
|
|
|
$
|
22
|
|
|
$
|
(64
|
)
|
|
$
|
81,402
|
|
Government-sponsored entities
|
263,460
|
|
|
1,278
|
|
|
(1,139
|
)
|
|
263,599
|
|
||||
Corporate bonds
|
18,881
|
|
|
39
|
|
|
(104
|
)
|
|
18,816
|
|
||||
Municipal bonds
|
192,139
|
|
|
2,934
|
|
|
(1,025
|
)
|
|
194,048
|
|
||||
Mortgage backed securities (1)
|
230,352
|
|
|
5,334
|
|
|
(1,429
|
)
|
|
234,257
|
|
||||
Other
|
3,195
|
|
|
151
|
|
|
(30
|
)
|
|
3,316
|
|
||||
Total
|
$
|
789,471
|
|
|
$
|
9,758
|
|
|
$
|
(3,791
|
)
|
|
$
|
795,438
|
|
Held to maturity securities at amortized cost:
|
|
|
|
|
|
|
|
||||||||
U.S. government and agencies
|
$
|
586
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
586
|
|
Government-sponsored entities
|
1,429
|
|
|
5
|
|
|
(23
|
)
|
|
1,411
|
|
||||
Other
|
500
|
|
|
—
|
|
|
—
|
|
|
500
|
|
||||
Total
|
$
|
2,515
|
|
|
$
|
5
|
|
|
$
|
(23
|
)
|
|
$
|
2,497
|
|
(1)
|
Most mortgage-backed securities are guaranteed by U.S. government agencies or Government-sponsored entities.
|
|
Available for Sale Securities
|
||||||
Amortized
cost
|
|
Fair
value
|
|||||
(In thousands)
|
|||||||
Within one year
|
$
|
59,298
|
|
|
$
|
59,776
|
|
After one, but within five years
|
435,308
|
|
|
439,600
|
|
||
After five, but within ten years
|
80,961
|
|
|
81,368
|
|
||
Greater than ten years
|
207,995
|
|
|
212,878
|
|
||
Total
|
$
|
783,562
|
|
|
$
|
793,622
|
|
|
For the three months
ended June 30,
|
|
For the six months
ended June 30,
|
||||||||||||
2011
|
|
2010
|
|
2011
|
|
2010
|
|||||||||
(In thousands)
|
|
(In thousands)
|
|||||||||||||
Proceeds from sales
|
$
|
46,829
|
|
|
$
|
139,115
|
|
|
$
|
128,931
|
|
|
$
|
366,636
|
|
Realized gains
|
213
|
|
|
1,048
|
|
|
869
|
|
|
2,511
|
|
||||
Realized losses
|
(45
|
)
|
|
(61
|
)
|
|
(283
|
)
|
|
(92
|
)
|
|
Less than 12 months
|
|
12 months or longer
|
|
Total
|
|||||||||||||||||||||
|
Fair
value
|
|
Unrealized
losses
|
|
Fair
value
|
|
Unrealized
losses
|
|
Fair
value
|
|
Unrealized
losses
|
|
# of
securities
|
|||||||||||||
|
(In thousands)
|
|||||||||||||||||||||||||
Available for sale securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
U.S. government and agencies
|
$
|
3,746
|
|
|
$
|
(62
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,746
|
|
|
$
|
(62
|
)
|
|
2
|
|
Government-sponsored entities
|
100,034
|
|
|
(380
|
)
|
|
—
|
|
|
—
|
|
|
100,034
|
|
|
(380
|
)
|
|
17
|
|
||||||
Corporate bonds
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Municipal bonds
|
5,825
|
|
|
(117
|
)
|
|
—
|
|
|
—
|
|
|
5,825
|
|
|
(117
|
)
|
|
9
|
|
||||||
Mortgage backed securities
|
35,704
|
|
|
(213
|
)
|
|
—
|
|
|
—
|
|
|
35,704
|
|
|
(213
|
)
|
|
17
|
|
||||||
Other
|
51
|
|
|
(4
|
)
|
|
65
|
|
|
(21
|
)
|
|
116
|
|
|
(25
|
)
|
|
18
|
|
||||||
Total
|
$
|
145,360
|
|
|
$
|
(776
|
)
|
|
$
|
65
|
|
|
$
|
(21
|
)
|
|
$
|
145,425
|
|
|
$
|
(797
|
)
|
|
63
|
|
|
At
June 30,
2011
|
|
Fair value measurements at reporting date using:
|
||||||||||||
Quoted prices in
active markets
for identical
assets (level 1)
|
|
Significant other
observable
inputs (level 2)
|
|
Significant
unobservable
inputs (level 3)
|
|||||||||||
(In thousands)
|
|||||||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Available for sale securities:
|
|
|
|
|
|
|
|
||||||||
U.S. government and agencies
|
$
|
6,754
|
|
|
$
|
3,008
|
|
|
$
|
3,746
|
|
|
$
|
—
|
|
Government-sponsored entities
|
346,696
|
|
|
—
|
|
|
346,696
|
|
|
—
|
|
||||
Corporate bonds
|
13,879
|
|
|
—
|
|
|
13,879
|
|
|
—
|
|
||||
Municipal bonds
|
189,191
|
|
|
—
|
|
|
189,191
|
|
|
—
|
|
||||
Mortgage-backed securities
|
233,701
|
|
|
—
|
|
|
233,701
|
|
|
—
|
|
||||
Other
|
3,401
|
|
|
604
|
|
|
2,047
|
|
|
750
|
|
||||
Total available for sale securities
|
793,622
|
|
|
3,612
|
|
|
789,260
|
|
|
750
|
|
||||
Derivatives—interest rate customer swaps
|
4,268
|
|
|
—
|
|
|
4,268
|
|
|
—
|
|
||||
Derivatives—customer foreign exchange forward
|
187
|
|
|
—
|
|
|
187
|
|
|
—
|
|
||||
Other investments
|
5,994
|
|
|
4,994
|
|
|
1,000
|
|
|
—
|
|
||||
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivatives—interest rate customer swaps (1)
|
$
|
4,389
|
|
|
$
|
—
|
|
|
$
|
4,389
|
|
|
$
|
—
|
|
Derivatives—customer foreign exchange forward (1)
|
187
|
|
|
—
|
|
|
187
|
|
|
—
|
|
||||
Derivatives-junior subordinated debenture interest rate swap (1)
|
3,305
|
|
|
—
|
|
|
3,305
|
|
|
—
|
|
|
|
|
Fair value measurements at reporting date using:
|
||||||||||||
At
December 31,
2010
|
|
Quoted prices in
active markets
for identical
assets (level 1)
|
|
Significant other
observable
inputs (level 2)
|
|
Significant
unobservable
inputs (level 3)
|
|||||||||
(In thousands)
|
|||||||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Available for sale securities
|
|
|
|
|
|
|
|
||||||||
U.S. government and agencies
|
$
|
81,402
|
|
|
$
|
72,972
|
|
|
$
|
8,430
|
|
|
$
|
—
|
|
Government-sponsored entities
|
263,599
|
|
|
—
|
|
|
263,599
|
|
|
—
|
|
||||
Corporate bonds
|
18,816
|
|
|
—
|
|
|
18,816
|
|
|
—
|
|
||||
Municipal bonds
|
194,048
|
|
|
—
|
|
|
194,048
|
|
|
—
|
|
||||
Mortgage-backed securities
|
234,257
|
|
|
—
|
|
|
234,257
|
|
|
—
|
|
||||
Other
|
3,316
|
|
|
539
|
|
|
2,027
|
|
|
750
|
|
||||
Total available for sale securities
|
795,438
|
|
|
73,511
|
|
|
721,177
|
|
|
750
|
|
||||
Derivatives - interest rate customer swaps
|
4,862
|
|
|
—
|
|
|
4,862
|
|
|
—
|
|
||||
Derivatives - customer foreign exchange forward
|
130
|
|
|
—
|
|
|
130
|
|
|
—
|
|
||||
Other investments
|
10,828
|
|
|
4,723
|
|
|
6,105
|
|
|
—
|
|
||||
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivatives - interest rate customer swaps (1)
|
$
|
5,049
|
|
|
$
|
—
|
|
|
$
|
5,049
|
|
|
$
|
—
|
|
Derivatives - customer foreign exchange forward (1)
|
130
|
|
|
—
|
|
|
130
|
|
|
—
|
|
||||
Derivatives - junior subordinated debenture interest rate swap (1)
|
2,342
|
|
|
—
|
|
|
2,342
|
|
|
—
|
|
|
Balance at
March 31,
2011
|
|
Purchase, (sales),
issuances and
(settlements), net
|
|
Transfers
into (out of)
Level 3
|
|
Unrealized
gains
(losses)
|
|
Amortization
|
|
Balance at
June 30,
2011
|
||||||||||||
(In thousands)
|
|||||||||||||||||||||||
Other available for sale investments
|
$
|
750
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
750
|
|
Total Level 3 assets
|
$
|
750
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
750
|
|
|
Balance at
January 1,
2011
|
|
Purchase, (sales),
issuances and
(settlements), net
|
|
Transfers
into (out of)
Level 3
|
|
Unrealized
gains
(losses)
|
|
Amortization
|
|
Balance at
June 30,
2011
|
||||||||||||
(In thousands)
|
|||||||||||||||||||||||
Other available for sale investments
|
$
|
750
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
750
|
|
Total Level 3 assets
|
$
|
750
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
750
|
|
|
Balance at
March 31,
2010
|
|
Purchase, (sales),
issuances and
(settlements), net
|
|
Transfers
into (out of)
Level 3
|
|
Unrealized
gains
(losses)
|
|
Amortization
|
|
Balance at
June 30,
2010
|
||||||||||||
(In thousands)
|
|||||||||||||||||||||||
Mortgage-backed securities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Other available for sale investments
|
500
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
500
|
|
||||||
Total Level 3 assets
|
$
|
500
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
500
|
|
|
Balance at
January 1,
2010
|
|
Purchase, (sales),
issuances and
(settlements), net
|
|
Transfers
into (out of)
Level 3
|
|
Unrealized
gains
(losses)
|
|
Amortization
|
|
Balance at
June 30,
2010
|
||||||||||||
(In thousands)
|
|||||||||||||||||||||||
Mortgage-backed securities (1)
|
$
|
3,151
|
|
|
$
|
—
|
|
|
$
|
(3,151
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Other available for sale investments
|
500
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
500
|
|
||||||
Total Level 3 assets
|
$
|
3,651
|
|
|
$
|
—
|
|
|
$
|
(3,151
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
500
|
|
(1)
|
Collateral-dependent impaired loans held at June 30, 2011 that had write-downs in fair value or whose specific reserve changed during the second quarter of 2011.
|
(1)
|
Collateral-dependent impaired loans held at June 30, 2011 that had write-downs in fair value or whose specific reserve changed during the first six months of 2011.
|
(2)
|
Two OREO properties held at June 30, 2011 had write-downs during the first six months of 2011.
|
|
December 31, 2010
|
|
Fair value measurements recorded during the year:
|
||||||||||||
Quoted prices in
active markets
for identical
assets (level 1)
|
|
Significant other
observable
inputs (level 2)
|
|
Significant
unobservable
inputs (level 3)
|
|||||||||||
(In thousands)
|
|||||||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Impaired loans(1)
|
$
|
32,790
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
32,790
|
|
Loans held for sale(2)
|
1,526
|
|
|
—
|
|
|
—
|
|
|
1,526
|
|
||||
OREO(3)
|
2,878
|
|
|
—
|
|
|
—
|
|
|
2,878
|
|
||||
|
$
|
37,194
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
37,194
|
|
(1)
|
Collateral-dependent impaired loans held at December 31, 2010 that had write-downs in fair value or whose specific reserve changed during 2010.
|
(2)
|
One loan in the loans held for sale category had a write-down during 2010.
|
(3)
|
Three OREO properties held at December 31, 2010 had write-downs during 2010.
|
|
June 30, 2011
|
|
December 31, 2010
|
||||||||||||
Book Value
|
|
Fair Value
|
|
Book Value
|
|
Fair Value
|
|||||||||
(In thousands)
|
|||||||||||||||
FINANCIAL ASSETS:
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
472,555
|
|
|
$
|
472,555
|
|
|
$
|
494,439
|
|
|
$
|
494,439
|
|
Held to maturity securities
|
—
|
|
|
—
|
|
|
2,515
|
|
|
2,497
|
|
||||
Loans, net (including loans held for sale)
|
4,315,323
|
|
|
4,376,159
|
|
|
4,391,089
|
|
|
4,458,519
|
|
||||
Other financial assets
|
120,828
|
|
|
120,828
|
|
|
121,977
|
|
|
121,977
|
|
||||
FINANCIAL LIABILITIES:
|
|
|
|
|
|
|
|
||||||||
Deposits
|
4,551,319
|
|
|
4,559,098
|
|
|
4,486,726
|
|
|
4,494,884
|
|
||||
Securities sold under agreements to repurchase
|
122,448
|
|
|
125,818
|
|
|
258,598
|
|
|
262,344
|
|
||||
Federal Home Loan Bank borrowings
|
523,695
|
|
|
545,282
|
|
|
575,682
|
|
|
597,023
|
|
||||
Junior subordinated debentures
|
188,645
|
|
|
166,589
|
|
|
193,645
|
|
|
168,235
|
|
||||
Other financial liabilities
|
13,734
|
|
|
13,734
|
|
|
13,133
|
|
|
13,133
|
|
|
June 30,
2011
|
|
December 31,
2010
|
||||
|
(In thousands)
|
||||||
Commercial and industrial
|
$
|
619,728
|
|
|
$
|
658,147
|
|
Commercial real estate
|
1,568,588
|
|
|
1,698,086
|
|
||
Construction and land
|
130,570
|
|
|
150,702
|
|
||
Residential mortgage
|
1,767,671
|
|
|
1,673,934
|
|
||
Home equity
|
153,528
|
|
|
158,430
|
|
||
Consumer and other
|
169,355
|
|
|
141,048
|
|
||
Total Loans
|
$
|
4,409,440
|
|
|
$
|
4,480,347
|
|
|
June 30,
2011
|
|
December 31,
2010
|
||||
|
(In thousands)
|
||||||
Commercial and industrial
|
$
|
3,044
|
|
|
$
|
8,583
|
|
Commercial real estate
|
55,067
|
|
|
66,518
|
|
||
Construction and land (1)
|
6,808
|
|
|
15,323
|
|
||
Residential mortgage
|
12,885
|
|
|
14,111
|
|
||
Home equity
|
2,133
|
|
|
799
|
|
||
Consumer and other
|
5
|
|
|
131
|
|
||
Total
|
$
|
79,942
|
|
|
$
|
105,465
|
|
(1)
|
Does not include a non-accrual construction and land loan held for sale of $1.5 million at December 31, 2010. This loan was the one remaining loan in the Company's non-strategic Southern California loans held for sale portfolio.
|
|
June 30, 2011
|
|||||||||||||||||||||||||||||
|
Accruing Past Due
|
|
Non-Accrual Loans
|
|
|
|
|
|||||||||||||||||||||||
|
30-59 Days Past Due
|
60-89 Days Past Due
|
Total Accruing Past Due
|
|
Current Payment Status
|
30-89 Days Past Due
|
Over 89 Days Past Due
|
Total Non-Accrual Loans
|
|
Current Accruing Loans
|
|
Total Loans Receivable
|
||||||||||||||||||
|
(In thousands)
|
|||||||||||||||||||||||||||||
Commercial and industrial
|
$
|
1,599
|
|
$
|
365
|
|
$
|
1,964
|
|
|
$
|
2,253
|
|
$
|
352
|
|
$
|
439
|
|
$
|
3,044
|
|
|
$
|
614,720
|
|
|
$
|
619,728
|
|
Commercial real estate
|
2,381
|
|
324
|
|
2,705
|
|
|
34,212
|
|
4,164
|
|
16,691
|
|
55,067
|
|
|
1,510,816
|
|
|
1,568,588
|
|
|||||||||
Construction and land
|
—
|
|
—
|
|
—
|
|
|
2,552
|
|
—
|
|
4,256
|
|
6,808
|
|
|
123,762
|
|
|
130,570
|
|
|||||||||
Residential mortgage
|
—
|
|
1,318
|
|
1,318
|
|
|
7,575
|
|
487
|
|
4,823
|
|
12,885
|
|
|
1,753,468
|
|
|
1,767,671
|
|
|||||||||
Home equity
|
381
|
|
—
|
|
381
|
|
|
460
|
|
—
|
|
1,673
|
|
2,133
|
|
|
151,014
|
|
|
153,528
|
|
|||||||||
Consumer and other
|
133
|
|
—
|
|
133
|
|
|
5
|
|
—
|
|
—
|
|
5
|
|
|
169,217
|
|
|
169,355
|
|
|||||||||
Total
|
$
|
4,494
|
|
$
|
2,007
|
|
$
|
6,501
|
|
|
$
|
47,057
|
|
$
|
5,003
|
|
$
|
27,882
|
|
$
|
79,942
|
|
|
$
|
4,322,997
|
|
|
$
|
4,409,440
|
|
|
As of December 31, 2010
|
||||||||||||||||||||||
|
Accruing Past Due
|
|
|
|
|
|
|
||||||||||||||||
|
30-59 Days Past Due
|
|
60-89 Days Past Due
|
|
Total Accruing Past Due
|
|
Non-Accrual Loans (1) (2)
|
|
Current Accruing Loans
|
|
Total Loans Receivable
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
Commercial and industrial
|
$
|
4,819
|
|
|
$
|
2,637
|
|
|
$
|
7,456
|
|
|
$
|
8,583
|
|
|
$
|
642,108
|
|
|
$
|
658,147
|
|
Commercial real estate
|
4,463
|
|
|
5,983
|
|
|
10,446
|
|
|
66,518
|
|
|
1,621,122
|
|
|
1,698,086
|
|
||||||
Construction and land
|
—
|
|
|
—
|
|
|
—
|
|
|
15,323
|
|
|
135,379
|
|
|
150,702
|
|
||||||
Residential mortgage
|
6,050
|
|
|
503
|
|
|
6,553
|
|
|
14,111
|
|
|
1,653,270
|
|
|
1,673,934
|
|
||||||
Home equity
|
237
|
|
|
—
|
|
|
237
|
|
|
799
|
|
|
157,394
|
|
|
158,430
|
|
||||||
Consumer and other
|
19
|
|
|
34
|
|
|
53
|
|
|
131
|
|
|
140,864
|
|
|
141,048
|
|
||||||
Total
|
$
|
15,588
|
|
|
$
|
9,157
|
|
|
$
|
24,745
|
|
|
$
|
105,465
|
|
|
$
|
4,350,137
|
|
|
$
|
4,480,347
|
|
(1)
|
Does not include a non-accrual construction and land loan held for sale of $1.5 million at December 31, 2010. This loan was the one remaining loan in the Company's non-strategic Southern California loans held for sale portfolio.
|
(2)
|
Of the $105.5 million of non-accrual loans, $50.3 million, or 47%, had a current customer payment status, $12.3 million, or 12%, had a 30-89 day past due customer payment status, and $42.9 million, or 41%, had a customer payment status of more than 90 days past due.
|
|
June 30, 2011
|
||||||||||||||||||
|
Grade or Non-Accrual Status
|
|
|
||||||||||||||||
|
Acceptable or Pass
|
|
Special Mention
|
|
Accruing Classified (1)
|
|
Non-Accrual Loans
|
|
Total Loans Receivable
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Commercial and industrial
|
$
|
561,205
|
|
|
$
|
29,081
|
|
|
$
|
26,398
|
|
|
$
|
3,044
|
|
|
$
|
619,728
|
|
Commercial real estate
|
1,329,318
|
|
|
112,242
|
|
|
71,961
|
|
|
55,067
|
|
|
1,568,588
|
|
|||||
Construction and land
|
105,887
|
|
|
14,356
|
|
|
3,519
|
|
|
6,808
|
|
|
130,570
|
|
|||||
Residential mortgage
|
1,753,203
|
|
|
—
|
|
|
1,583
|
|
|
12,885
|
|
|
1,767,671
|
|
|||||
Home equity
|
150,599
|
|
|
796
|
|
|
—
|
|
|
2,133
|
|
|
153,528
|
|
|||||
Consumer and other
|
169,311
|
|
|
25
|
|
|
14
|
|
|
5
|
|
|
169,355
|
|
|||||
Total
|
$
|
4,069,523
|
|
|
$
|
156,500
|
|
|
$
|
103,475
|
|
|
$
|
79,942
|
|
|
$
|
4,409,440
|
|
|
December 31, 2010
|
||||||||||||||||||
|
Grade or Non-Accrual Status
|
|
|
||||||||||||||||
|
Acceptable or Pass
|
|
Special Mention
|
|
Accruing Classified (1)
|
|
Non-Accrual Loans (2)
|
|
Total
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Commercial and industrial
|
$
|
601,364
|
|
|
$
|
29,698
|
|
|
$
|
18,502
|
|
|
$
|
8,583
|
|
|
$
|
658,147
|
|
Commercial real estate
|
1,420,682
|
|
|
135,605
|
|
|
75,281
|
|
|
66,518
|
|
|
1,698,086
|
|
|||||
Construction and land
|
115,056
|
|
|
18,083
|
|
|
2,240
|
|
|
15,323
|
|
|
150,702
|
|
|||||
Residential mortgage
|
1,658,656
|
|
|
196
|
|
|
971
|
|
|
14,111
|
|
|
1,673,934
|
|
|||||
Home equity
|
156,605
|
|
|
702
|
|
|
324
|
|
|
799
|
|
|
158,430
|
|
|||||
Consumer and other
|
137,466
|
|
|
3,331
|
|
|
120
|
|
|
131
|
|
|
141,048
|
|
|||||
Total
|
$
|
4,089,829
|
|
|
$
|
187,615
|
|
|
$
|
97,438
|
|
|
$
|
105,465
|
|
|
$
|
4,480,347
|
|
(1)
|
Accruing classified loans include loans that are classified as substandard or doubtful but are still accruing interest income.
|
(2)
|
Does not include a non-accrual construction and land loan held for sale of $1.5 million at December 31, 2010. This loan was the one remaining loan in the Company's non-strategic Southern California loans held for sale portfolio.
|
|
As of and for the three and six months ended June 30, 2011
|
||||||||||||||||||||||||||
|
Recorded Investment (1)
|
|
Unpaid Principal Balance
|
|
Related Allowance
|
|
QTD Average Recorded Investment
|
|
YTD Average Recorded Investment
|
|
QTD Interest Income Recognized while Impaired
|
|
YTD Interest Income Recognized while Impaired
|
||||||||||||||
|
(In thousands)
|
|
|
||||||||||||||||||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
$
|
2,765
|
|
|
$
|
3,354
|
|
|
$
|
—
|
|
|
$
|
6,757
|
|
|
$
|
7,507
|
|
|
$
|
—
|
|
|
$
|
16
|
|
Commercial real estate
|
39,647
|
|
|
55,604
|
|
|
—
|
|
|
57,518
|
|
|
52,781
|
|
|
80
|
|
|
165
|
|
|||||||
Construction and land
|
5,245
|
|
|
8,391
|
|
|
—
|
|
|
5,925
|
|
|
7,436
|
|
|
—
|
|
|
—
|
|
|||||||
Residential mortgage
|
7,512
|
|
|
8,025
|
|
|
—
|
|
|
8,086
|
|
|
7,936
|
|
|
20
|
|
|
24
|
|
|||||||
Home equity
|
1,208
|
|
|
1,250
|
|
|
—
|
|
|
1,070
|
|
|
877
|
|
|
—
|
|
|
—
|
|
|||||||
Consumer and other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21
|
|
|
—
|
|
|
—
|
|
|||||||
Subtotal
|
56,377
|
|
|
76,624
|
|
|
—
|
|
|
79,356
|
|
|
76,558
|
|
|
100
|
|
|
205
|
|
|||||||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
129
|
|
|
131
|
|
|
22
|
|
|
1,358
|
|
|
936
|
|
|
—
|
|
|
—
|
|
|||||||
Commercial real estate
|
32,676
|
|
|
35,371
|
|
|
4,867
|
|
|
27,942
|
|
|
26,625
|
|
|
121
|
|
|
121
|
|
|||||||
Construction and land
|
1,563
|
|
|
1,572
|
|
|
308
|
|
|
3,309
|
|
|
3,601
|
|
|
—
|
|
|
—
|
|
|||||||
Residential mortgage
|
4,002
|
|
|
4,002
|
|
|
346
|
|
|
4,007
|
|
|
3,945
|
|
|
21
|
|
|
55
|
|
|||||||
Home equity
|
131
|
|
|
131
|
|
|
131
|
|
|
131
|
|
|
131
|
|
|
2
|
|
|
3
|
|
|||||||
Consumer and other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Subtotal
|
38,501
|
|
|
41,207
|
|
|
5,674
|
|
|
36,747
|
|
|
35,238
|
|
|
144
|
|
|
179
|
|
|||||||
Total:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
2,894
|
|
|
3,485
|
|
|
22
|
|
|
8,115
|
|
|
8,443
|
|
|
—
|
|
|
16
|
|
|||||||
Commercial real estate
|
72,323
|
|
|
90,975
|
|
|
4,867
|
|
|
85,460
|
|
|
79,406
|
|
|
201
|
|
|
286
|
|
|||||||
Construction and land
|
6,808
|
|
|
9,963
|
|
|
308
|
|
|
9,234
|
|
|
11,037
|
|
|
—
|
|
|
—
|
|
|||||||
Residential mortgage
|
11,514
|
|
|
12,027
|
|
|
346
|
|
|
12,093
|
|
|
11,881
|
|
|
41
|
|
|
79
|
|
|||||||
Home equity
|
1,339
|
|
|
1,381
|
|
|
131
|
|
|
1,201
|
|
|
1,008
|
|
|
2
|
|
|
3
|
|
|||||||
Consumer and other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21
|
|
|
—
|
|
|
—
|
|
|||||||
Total
|
$
|
94,878
|
|
|
$
|
117,831
|
|
|
$
|
5,674
|
|
|
$
|
116,103
|
|
|
$
|
111,796
|
|
|
$
|
244
|
|
|
$
|
384
|
|
(1)
|
Recorded investment represents the customer loan balance net of historical charge offs of $20.5 million and historical non-accrual interest paid, which is applied to principal, of $2.5 million.
|
|
As of and for the year ended December 31, 2010
|
||||||||||
|
Recorded Investment (1)
|
|
Unpaid Principal Balance
|
|
Related Allowance
|
||||||
|
(In thousands)
|
||||||||||
With no related allowance recorded:
|
|
|
|
|
|
||||||
Commercial and industrial
|
$
|
8,529
|
|
|
$
|
9,340
|
|
|
$
|
—
|
|
Commercial real estate
|
52,794
|
|
|
75,203
|
|
|
—
|
|
|||
Construction and land
|
11,291
|
|
|
14,808
|
|
|
—
|
|
|||
Residential mortgage
|
6,619
|
|
|
6,898
|
|
|
—
|
|
|||
Home equity
|
799
|
|
|
831
|
|
|
—
|
|
|||
Consumer and other
|
—
|
|
|
—
|
|
|
—
|
|
|||
Subtotal
|
80,032
|
|
|
107,080
|
|
|
—
|
|
|||
With an allowance recorded:
|
|
|
|
|
|
||||||
Commercial and industrial
|
54
|
|
|
54
|
|
|
54
|
|
|||
Commercial real estate
|
16,736
|
|
|
18,028
|
|
|
3,174
|
|
|||
Construction and land
|
4,032
|
|
|
4,773
|
|
|
1,067
|
|
|||
Residential mortgage
|
3,823
|
|
|
3,823
|
|
|
332
|
|
|||
Home equity
|
—
|
|
|
—
|
|
|
—
|
|
|||
Consumer and other
|
—
|
|
|
—
|
|
|
—
|
|
|||
Subtotal
|
24,645
|
|
|
26,678
|
|
|
4,627
|
|
|||
Total:
|
|
|
|
|
|
||||||
Commercial and Industrial
|
8,583
|
|
|
9,394
|
|
|
54
|
|
|||
Commercial real estate
|
69,530
|
|
|
93,231
|
|
|
3,174
|
|
|||
Construction and land
|
15,323
|
|
|
19,581
|
|
|
1,067
|
|
|||
Residential mortgage
|
10,442
|
|
|
10,721
|
|
|
332
|
|
|||
Home equity
|
799
|
|
|
831
|
|
|
—
|
|
|||
Consumer and other
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total
|
$
|
104,677
|
|
|
$
|
133,758
|
|
|
$
|
4,627
|
|
(1)
|
Recorded investment represents the customer loan balance net of historical charge offs of $26.4 million and historical non-accrual interest paid, which was applied to principal, of $2.6 million.
|
|
At and for the
three months ended
June 30, 2011
|
|
|
At and for the
six months ended
June 30, 2011
|
|
||
|
(In thousands)
|
||||||
Allowance for loan losses, beginning of period:
|
|
|
|
||||
Commercial and industrial
|
$
|
13,864
|
|
|
$
|
13,438
|
|
Commercial real estate
|
68,293
|
|
|
65,760
|
|
||
Construction and land
|
5,887
|
|
|
6,875
|
|
||
Residential mortgage
|
7,873
|
|
|
7,449
|
|
||
Home equity
|
1,199
|
|
|
1,231
|
|
||
Consumer and other
|
1,463
|
|
|
1,478
|
|
||
Unallocated
|
1,703
|
|
|
2,172
|
|
||
Total allowance for loan losses, beginning of period
|
100,282
|
|
|
98,403
|
|
||
Provision for loan losses:
|
|
|
|
||||
Commercial and industrial
|
(1,080
|
)
|
|
(205
|
)
|
||
Commercial real estate
|
(753
|
)
|
|
11,158
|
|
||
Construction and land
|
(2,877
|
)
|
|
(2,595
|
)
|
||
Residential mortgage
|
1,476
|
|
|
2,095
|
|
||
Home equity
|
186
|
|
|
153
|
|
||
Consumer and other
|
603
|
|
|
768
|
|
||
Unallocated
|
255
|
|
|
(214
|
)
|
||
Total provision/ (credit) for loan losses
|
(2,190
|
)
|
|
11,160
|
|
|
At and for the
three months ended
June 30, 2011
|
|
At and for the
six months ended
June 30, 2011
|
||||
(continued)
|
(In thousands)
|
||||||
Loans charged-off:
|
|
|
|
||||
Commercial and industrial
|
$
|
(1,246
|
)
|
|
$
|
(2,052
|
)
|
Commercial real estate
|
(1,673
|
)
|
|
(11,919
|
)
|
||
Construction and land
|
(602
|
)
|
|
(2,230
|
)
|
||
Residential mortgage
|
(850
|
)
|
|
(1,045
|
)
|
||
Home equity
|
(95
|
)
|
|
(95
|
)
|
||
Consumer and other
|
(462
|
)
|
|
(653
|
)
|
||
Total charge-offs
|
(4,928
|
)
|
|
(17,994
|
)
|
||
Recoveries on loans previously charged-off:
|
|
|
|
||||
Commercial and industrial
|
922
|
|
|
1,279
|
|
||
Commercial real estate
|
1,047
|
|
|
1,915
|
|
||
Construction and land
|
3,596
|
|
|
3,954
|
|
||
Residential mortgage
|
—
|
|
|
—
|
|
||
Home equity
|
1
|
|
|
2
|
|
||
Consumer and other
|
12
|
|
|
23
|
|
||
Total recoveries
|
5,578
|
|
|
7,173
|
|
||
Allowance for loan losses at June 30, 2011 (end of period):
|
|
|
|
||||
Commercial and industrial
|
12,460
|
|
|
12,460
|
|
||
Commercial real estate
|
66,914
|
|
|
66,914
|
|
||
Construction and land
|
6,004
|
|
|
6,004
|
|
||
Residential mortgage
|
8,499
|
|
|
8,499
|
|
||
Home equity
|
1,291
|
|
|
1,291
|
|
||
Consumer and other
|
1,616
|
|
|
1,616
|
|
||
Unallocated
|
1,958
|
|
|
1,958
|
|
||
Total allowance for loan losses at June 30, 2011 (end of period)
|
$
|
98,742
|
|
|
$
|
98,742
|
|
|
At and for the
three months ended
June 30, 2010
|
|
At and for the
six months ended
June 30, 2010
|
||||
|
(In thousands)
|
||||||
Allowance for loan losses, beginning of period:
|
$
|
73,262
|
|
|
$
|
68,444
|
|
Provision for loan losses
|
14,962
|
|
|
22,577
|
|
||
Charge-offs
|
(10,212
|
)
|
|
(15,576
|
)
|
||
Recoveries
|
1,061
|
|
|
3,628
|
|
||
Allowance for loan losses at June 30, 2010 (end of period)
|
$
|
79,073
|
|
|
$
|
79,073
|
|
|
Commercial and industrial
|
|
Commercial real estate
|
|
Construction and land
|
|
Residential mortgage
|
||||||||
|
(In thousands)
|
||||||||||||||
Allowance for loan losses balance at June 30, 2011 attributable to:
|
|
|
|
|
|
|
|
||||||||
Loans collectively evaluated for impairment
|
$
|
13,950
|
|
|
$
|
60,739
|
|
|
$
|
5,482
|
|
|
$
|
8,024
|
|
Loans individually evaluated for impairment
|
22
|
|
|
4,867
|
|
|
308
|
|
|
346
|
|
||||
Total allowance for loan losses
|
$
|
13,972
|
|
|
$
|
65,606
|
|
|
$
|
5,790
|
|
|
$
|
8,370
|
|
|
|
|
|
|
|
|
|
||||||||
Recorded investment (loan balance) at June 30, 2011:
|
|
|
|
|
|
|
|
||||||||
Loans collectively evaluated for impairment
|
$
|
616,834
|
|
|
$
|
1,496,265
|
|
|
$
|
123,762
|
|
|
$
|
1,756,157
|
|
Loans individually evaluated for impairment
|
2,894
|
|
|
72,323
|
|
|
6,808
|
|
|
11,514
|
|
||||
Total Loans
|
$
|
619,728
|
|
|
$
|
1,568,588
|
|
|
$
|
130,570
|
|
|
$
|
1,767,671
|
|
|
Home equity
|
|
Consumer
and other
|
|
Unallocated
|
|
Total
|
||||||||
(Continued from above)
|
(In thousands)
|
||||||||||||||
Allowance for loan losses balance at June 30, 2011 attributable to:
|
|
|
|
|
|
|
|
||||||||
Loans collectively evaluated for impairment
|
$
|
1,292
|
|
|
$
|
1,623
|
|
|
$
|
1,958
|
|
|
$
|
93,068
|
|
Loans individually evaluated for impairment
|
131
|
|
|
—
|
|
|
—
|
|
|
5,674
|
|
||||
Total allowance for loan losses
|
$
|
1,423
|
|
|
$
|
1,623
|
|
|
$
|
1,958
|
|
|
$
|
98,742
|
|
|
|
|
|
|
|
|
|
||||||||
Recorded investment (loan balance) at June 30, 2011:
|
|
|
|
|
|
|
|
||||||||
Loans collectively evaluated for impairment
|
$
|
152,189
|
|
|
$
|
169,355
|
|
|
$
|
—
|
|
|
$
|
4,314,562
|
|
Loans individually evaluated for impairment
|
1,339
|
|
|
—
|
|
|
—
|
|
|
94,878
|
|
||||
Total Loans
|
$
|
153,528
|
|
|
$
|
169,355
|
|
|
$
|
—
|
|
|
$
|
4,409,440
|
|
|
Commercial and industrial
|
|
Commercial real estate
|
|
Construction and land (1)
|
|
Residential mortgage
|
||||||||
|
(In thousands)
|
||||||||||||||
Allowance for loan losses balance at December 31, 2010 attributable to:
|
|
|
|
|
|
|
|
||||||||
Loans collectively evaluated for impairment
|
$
|
13,384
|
|
|
$
|
62,586
|
|
|
$
|
5,808
|
|
|
$
|
7,117
|
|
Loans individually evaluated for impairment
|
54
|
|
|
3,174
|
|
|
1,067
|
|
|
332
|
|
||||
Total allowance for loan losses
|
$
|
13,438
|
|
|
$
|
65,760
|
|
|
$
|
6,875
|
|
|
$
|
7,449
|
|
|
|
|
|
|
|
|
|
||||||||
Recorded investment (loan balance) at December 31, 2010:
|
|
|
|
|
|
|
|
||||||||
Loans collectively evaluated for impairment
|
$
|
649,564
|
|
|
$
|
1,628,556
|
|
|
$
|
135,379
|
|
|
$
|
1,663,492
|
|
Loans individually evaluated for impairment
|
8,583
|
|
|
69,530
|
|
|
15,323
|
|
|
10,442
|
|
||||
Total Loans
|
$
|
658,147
|
|
|
$
|
1,698,086
|
|
|
$
|
150,702
|
|
|
$
|
1,673,934
|
|
|
Home equity
|
|
Consumer
and other
|
|
Unallocated
|
|
Total
|
||||||||
(Continued from above)
|
(In thousands)
|
||||||||||||||
Allowance for loan losses balance at December 31, 2010 attributable to:
|
|
|
|
|
|
|
|
||||||||
Loans collectively evaluated for impairment
|
$
|
1,231
|
|
|
$
|
1,478
|
|
|
$
|
2,172
|
|
|
$
|
93,776
|
|
Loans individually evaluated for impairment
|
—
|
|
|
—
|
|
|
—
|
|
|
4,627
|
|
||||
Total allowance for loan losses
|
$
|
1,231
|
|
|
$
|
1,478
|
|
|
$
|
2,172
|
|
|
$
|
98,403
|
|
|
|
|
|
|
|
|
|
||||||||
Recorded investment (loan balance) at December 31, 2010:
|
|
|
|
|
|
|
|
||||||||
Loans collectively evaluated for impairment
|
$
|
157,631
|
|
|
$
|
141,048
|
|
|
$
|
—
|
|
|
$
|
4,375,670
|
|
Loans individually evaluated for impairment
|
799
|
|
|
—
|
|
|
—
|
|
|
104,677
|
|
||||
Total Loans
|
$
|
158,430
|
|
|
$
|
141,048
|
|
|
$
|
—
|
|
|
$
|
4,480,347
|
|
(1)
|
Does not include a non-accrual construction and land loan held for sale of $1.5 million at December 31, 2010. This loan was the one remaining loan in the Company's non-strategic Southern California loans held for sale portfolio.
|
|
June 30, 2011
|
|
December 31, 2010
|
||||||||||||||||||||
|
Asset derivatives
|
|
Liability derivatives
|
|
Asset derivatives
|
|
Liability derivatives
|
||||||||||||||||
|
Balance
sheet
location
|
|
Fair value (2)
|
|
Balance
sheet
location
|
|
Fair value (2)
|
|
Balance
sheet
location
|
|
Fair value (2)
|
|
Balance
sheet
location
|
|
Fair value (2)
|
||||||||
|
(In thousands)
|
||||||||||||||||||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate products
|
Other
assets
|
|
$
|
—
|
|
|
Other
liabilities
|
|
$
|
(3,305
|
)
|
|
Other
assets
|
|
$
|
—
|
|
|
Other
liabilities
|
|
$
|
(2,342
|
)
|
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate products (1)
|
Other
assets
|
|
4,268
|
|
|
Other
assets
|
|
(4,389
|
)
|
|
Other
assets
|
|
4,862
|
|
|
Other
assets
|
|
(5,049
|
)
|
||||
Foreign exchange contracts (1)
|
Other assets
|
|
187
|
|
|
Other assets
|
|
(187
|
)
|
|
Other assets
|
|
130
|
|
|
Other assets
|
|
(130
|
)
|
||||
Total
|
|
|
$
|
4,455
|
|
|
|
|
$
|
(7,881
|
)
|
|
|
|
$
|
4,992
|
|
|
|
|
$
|
(7,521
|
)
|
(1)
|
Interest rate products and foreign exchange contracts derivative liabilities are netted with interest rate products and foreign exchange contracts derivative assets within other assets in the consolidated balance sheets.
|
(2)
|
For additional details, see Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements-Note 5: Fair Value Measurements.”
|
Derivatives in Cash
Flow Hedging
Relationships
|
|
Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) Three Months Ended June 30,
|
|
Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)
|
|
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Three Months Ended June 30,
|
||||||||||||
|
2011
|
|
2010
|
|
|
2011
|
|
2010
|
||||||||||
(In thousands)
|
||||||||||||||||||
Interest rate products
|
|
$
|
(2,136
|
)
|
|
$
|
(1,578
|
)
|
|
Interest income
|
|
$
|
(467
|
)
|
|
$
|
757
|
|
|
|
|
|
|
|
Other income / expense
|
|
—
|
|
|
(1
|
)
|
||||||
Total
|
|
$
|
(2,136
|
)
|
|
$
|
(1,578
|
)
|
|
|
|
$
|
(467
|
)
|
|
$
|
756
|
|
Derivatives in Cash
Flow Hedging
Relationships
|
|
Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) Six Months Ended June 30,
|
|
Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)
|
|
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Six Months Ended June 30,
|
||||||||||||
|
2011
|
|
2010
|
|
|
2011
|
|
2010
|
||||||||||
(In thousands)
|
||||||||||||||||||
Interest rate products
|
|
$
|
(1,888
|
)
|
|
$
|
(1,478
|
)
|
|
Interest income
|
|
$
|
(930
|
)
|
|
$
|
1,506
|
|
|
|
|
|
|
|
Other income / expense
|
|
—
|
|
|
(5
|
)
|
||||||
Total
|
|
$
|
(1,888
|
)
|
|
$
|
(1,478
|
)
|
|
|
|
$
|
(930
|
)
|
|
$
|
1,501
|
|
Derivatives Not
Designated as Hedging
Instruments
|
|
Location of Gain or (Loss) Recognized in Income on Derivative
|
|
Amount of Gain or (Loss), Net, Recognized in Income on Derivative Three Months Ended June 30,
|
||||||
|
2011
|
|
2010
|
|||||||
|
|
|
|
(In thousands)
|
||||||
Interest rate products
|
|
Other income/ expense
|
|
$
|
36
|
|
|
$
|
(61
|
)
|
Foreign exchange contracts
|
|
Other income/ expense
|
|
15
|
|
|
—
|
|
||
Total
|
|
|
|
$
|
51
|
|
|
$
|
(61
|
)
|
Derivatives Not
Designated as Hedging
Instruments
|
|
Location of Gain or (Loss) Recognized in Income on Derivative
|
|
Amount of Gain or (Loss), Net, Recognized in Income on Derivative Six Months Ended June 30,
|
||||||
|
2011
|
|
2010
|
|||||||
|
|
|
|
(In thousands)
|
||||||
Interest rate products
|
|
Other income/ expense
|
|
$
|
67
|
|
|
$
|
(74
|
)
|
Foreign exchange contracts
|
|
Other income/ expense
|
|
27
|
|
|
—
|
|
||
Total
|
|
|
|
$
|
94
|
|
|
$
|
(74
|
)
|
|
Six months ended
June 30,
|
||||||
|
2011
|
|
2010
|
||||
|
(In thousands)
|
||||||
Income/ (loss) from continuing operations:
|
|
|
|
||||
Income/ (loss) before income taxes
|
$
|
16,812
|
|
|
$
|
7,113
|
|
Income tax expense/ (benefit)
|
4,051
|
|
|
1,134
|
|
||
Net income/ (loss) from continuing operations
|
$
|
12,761
|
|
|
$
|
5,979
|
|
Effective tax rate, continuing operations
|
24.1
|
%
|
|
15.9
|
%
|
||
|
|
|
|
||||
Income/ (loss) from discontinued operations:
|
|
|
|
||||
Income/ (loss) before income taxes
|
$
|
5,668
|
|
|
$
|
2,474
|
|
Income tax expense/ (benefit)
|
2,482
|
|
|
929
|
|
||
Net income/ (loss) from discontinued operations
|
$
|
3,186
|
|
|
$
|
1,545
|
|
Effective tax rate, discontinued operations
|
43.8
|
%
|
|
37.6
|
%
|
||
|
|
|
|
||||
Income/ (loss) attributable to noncontrolling interests:
|
|
|
|
||||
Income/ (loss) before income taxes
|
$
|
1,551
|
|
|
$
|
1,301
|
|
Income tax expense/ (benefit)
|
—
|
|
|
—
|
|
||
Net income attributable to noncontrolling interests
|
$
|
1,551
|
|
|
$
|
1,301
|
|
Effective tax rate, noncontrolling interests
|
—
|
%
|
|
—
|
%
|
||
|
|
|
|
||||
Income/ (loss) attributable to the Company
|
|
|
|
||||
Income/ (loss) before income taxes
|
$
|
20,929
|
|
|
$
|
8,286
|
|
Income tax expense/ (benefit)
|
6,533
|
|
|
2,063
|
|
||
Net income/ (loss) attributable to the Company
|
$
|
14,396
|
|
|
$
|
6,223
|
|
Effective tax rate attributable to the Company
|
31.2
|
%
|
|
24.9
|
%
|
|
June 30, 2011
|
|
December 31, 2010
|
||||
|
(In thousands)
|
||||||
Anchor
|
$
|
11,914
|
|
|
$
|
10,723
|
|
BOS
|
5,613
|
|
|
5,613
|
|
||
DTC
|
1,882
|
|
|
1,866
|
|
||
DGHM
|
1,801
|
|
|
1,396
|
|
||
Total
|
$
|
21,210
|
|
|
$
|
19,598
|
|
|
June 30, 2011
|
|
June 30, 2010
|
||||
|
(In thousands)
|
||||||
Balance at beginning of year
|
$
|
19,598
|
|
|
$
|
51,850
|
|
Net income attributable to noncontrolling interests
|
1,551
|
|
|
1,301
|
|
||
Distributions
|
(802
|
)
|
|
(1,042
|
)
|
||
KLS acquisition
|
—
|
|
|
(29,691
|
)
|
||
Redemption value adjustments
|
863
|
|
|
(2,746
|
)
|
||
Balance at end of period
|
$
|
21,210
|
|
|
$
|
19,672
|
|
|
Severance Charges
|
|
Contract Termination Fees
|
|
Professional Expenses
|
|
Other Associated Costs
|
|
Total
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Accrued charges at December 31, 2010
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Costs incurred
|
1,161
|
|
|
—
|
|
|
815
|
|
|
6
|
|
|
1,982
|
|
|||||
Costs paid
|
—
|
|
|
—
|
|
|
(143
|
)
|
|
(6
|
)
|
|
(149
|
)
|
|||||
Accrued charges at March 31, 2011
|
1,161
|
|
|
—
|
|
|
672
|
|
|
—
|
|
|
1,833
|
|
|||||
Costs incurred
|
2,500
|
|
|
571
|
|
|
783
|
|
|
450
|
|
|
4,304
|
|
|||||
Costs paid
|
(394
|
)
|
|
—
|
|
|
(688
|
)
|
|
(450
|
)
|
|
(1,532
|
)
|
|||||
Accrued charges at June 30, 2011
|
$
|
3,267
|
|
|
$
|
571
|
|
|
$
|
767
|
|
|
$
|
—
|
|
|
$
|
4,605
|
|
|
Three months ended June 30,
|
|
|
|
% Change
|
|||||||||
|
2011
|
|
2010
|
|
Change
|
|
||||||||
|
(In thousands, except per share data)
|
|
|
|||||||||||
Total revenues
|
$
|
78,337
|
|
|
$
|
70,650
|
|
|
$
|
7,687
|
|
|
11
|
%
|
Provision/ (credit) for loan losses
|
(2,190
|
)
|
|
14,962
|
|
|
(17,152
|
)
|
|
nm
|
|
|||
Total operating expenses
|
62,465
|
|
|
56,665
|
|
|
5,800
|
|
|
10
|
%
|
|||
Net income/ (loss) from continuing operations
|
13,833
|
|
|
225
|
|
|
13,608
|
|
|
nm
|
|
|||
Net income/ (loss) attributable to noncontrolling interests
|
804
|
|
|
616
|
|
|
188
|
|
|
31
|
%
|
|||
Net income/ (loss) attributable to the Company
|
14,545
|
|
|
1,118
|
|
|
13,427
|
|
|
nm
|
|
|||
Diluted earnings/ (loss) per share:
|
|
|
|
|
|
|
|
|||||||
From continuing operations
|
$
|
0.15
|
|
|
$
|
(0.09
|
)
|
|
$
|
0.23
|
|
|
nm
|
|
From discontinued operations
|
$
|
0.02
|
|
|
$
|
0.02
|
|
|
$
|
—
|
|
|
—
|
%
|
Attributable to common stockholders
|
$
|
0.17
|
|
|
$
|
(0.07
|
)
|
|
$
|
0.23
|
|
|
nm
|
|
▪
|
A decrease in provision for loan losses of
$17.2 million
, for the three months ended
June 30, 2011
, as compared to the same period in 2010. During the second quarter 2011 the Company recorded a credit to its provision for loan losses of
$2.2 million
, primarily due to recoveries on loans previously charged off, a reduction in classified loans, a change in the mix of loan types, and a decline in total loans outstanding. Recoveries during the second quarter on loans that were previously charged-off were
$5.6 million
, and the decrease in classified loans from the prior quarter was $53.7 million.
|
▪
|
An increase in fee income, which includes investment management and trust fees, wealth advisory fees, and other banking fees, of
$2.1 million
, or
8%
, for the three months ended
June 30, 2011
, as compared to the same period in 2010, primarily due to favorable domestic equity market conditions. The Company's Assets Under Management and Advisory ("AUM") increased
$2.7 billion
, or
16%
, from
June 30, 2010
to
June 30, 2011
.
|
▪
|
A $2.0 million net gain, for the three months ended June 30, 2011, from the sale of loans and OREO. During the quarter the Company sold five of its OREO properties for a gain of $0.8 million.
|
▪
|
A
$1.8 million
net gain, for the three months ended June 30, 2011, from repurchasing $5 million of the Company's convertible trust preferred securities issued by Boston Private Capital Trust I.
|
▪
|
An increase in net interest income of
$1.0 million
, or
2%
, for the three months ended
June 30, 2011
, as compared to the same period in 2010, primarily due to decreased cost of funds spread across both deposits and borrowings, and prepayment fees received on commercial loan pay-offs. These increases were slightly offset by lower rates earned on loans and a shift from commercial loans to more stable, yet lower-yield, residential loans. The net interest margin ("NIM") was 3.29% for both three month periods ended
June 30, 2011
and 2010.
|
▪
|
An increase in operating expenses of
$5.8 million
, or
10%
, for the three months ended
June 30, 2011
, as compared to the same period in 2010. Approximately 74%, or $4.3 million, of the increase is due to restructuring charges related to the Bank merger incurred by the Bank as well as the Holding Company. Excluding the $4.3 million in restructuring charges, operating expenses increased $1.5 million, or 3%.
|
|
June 30, 2011
|
|
December 31, 2010
|
|
Increase/
(decrease)
|
|
%
Change
|
|||||||
|
(In thousands)
|
|||||||||||||
Assets:
|
|
|
|
|
|
|
|
|||||||
Total cash and investments
|
$
|
1,310,962
|
|
|
$
|
1,338,238
|
|
|
$
|
(27,276
|
)
|
|
(2
|
)%
|
Loans held for sale
|
4,625
|
|
|
9,145
|
|
|
(4,520
|
)
|
|
(49
|
)%
|
|||
Total loans
|
4,409,440
|
|
|
4,480,347
|
|
|
(70,907
|
)
|
|
(2
|
)%
|
|||
Less: allowance for loan losses
|
98,742
|
|
|
98,403
|
|
|
339
|
|
|
—
|
%
|
|||
Net loans
|
4,310,698
|
|
|
4,381,944
|
|
|
(71,246
|
)
|
|
(2
|
)%
|
|||
Goodwill and intangible assets
|
147,951
|
|
|
151,212
|
|
|
(3,261
|
)
|
|
(2
|
)%
|
|||
Other assets
|
262,542
|
|
|
272,362
|
|
|
(9,820
|
)
|
|
(4
|
)%
|
|||
Total assets
|
$
|
6,036,778
|
|
|
$
|
6,152,901
|
|
|
$
|
(116,123
|
)
|
|
(2
|
)%
|
Liabilities and Equity:
|
|
|
|
|
|
|
|
|||||||
Deposits
|
$
|
4,551,319
|
|
|
$
|
4,486,726
|
|
|
$
|
64,593
|
|
|
1
|
%
|
Total borrowings
|
834,788
|
|
|
1,027,925
|
|
|
(193,137
|
)
|
|
(19
|
)%
|
|||
Other liabilities
|
90,491
|
|
|
99,774
|
|
|
(9,283
|
)
|
|
(9
|
)%
|
|||
Total liabilities
|
5,476,598
|
|
|
5,614,425
|
|
|
(137,827
|
)
|
|
(2
|
)%
|
|||
Redeemable noncontrolling interests
|
21,210
|
|
|
19,598
|
|
|
1,612
|
|
|
8
|
%
|
|||
Total stockholders’ equity
|
538,970
|
|
|
518,878
|
|
|
20,092
|
|
|
4
|
%
|
|||
Total liabilities, redeemable noncontrolling interests and stockholders’ equity
|
$
|
6,036,778
|
|
|
$
|
6,152,901
|
|
|
$
|
(116,123
|
)
|
|
(2
|
)%
|
|
June 30, 2011
|
|
December 31, 2010
|
||||||||||
|
Balance
|
|
as a % of total
|
|
Balance
|
|
as a % of total
|
||||||
|
(In thousands)
|
||||||||||||
Demand deposits
|
$
|
1,035,331
|
|
|
23
|
%
|
|
$
|
972,927
|
|
|
22
|
%
|
NOW
|
357,752
|
|
|
8
|
%
|
|
415,528
|
|
|
9
|
%
|
||
Savings
|
181,058
|
|
|
4
|
%
|
|
172,588
|
|
|
4
|
%
|
||
Money market
|
1,956,668
|
|
|
43
|
%
|
|
1,829,881
|
|
|
41
|
%
|
||
Certificates of deposit under $100,000 (1)
|
256,971
|
|
|
6
|
%
|
|
275,345
|
|
|
6
|
%
|
||
Certificates of deposit of $100,000 or greater
|
763,539
|
|
|
16
|
%
|
|
820,457
|
|
|
18
|
%
|
||
Total deposits
|
$
|
4,551,319
|
|
|
100
|
%
|
|
$
|
4,486,726
|
|
|
100
|
%
|
|
Commercial and Industrial
|
|
Commercial Real Estate
|
|
Construction and
Land
|
|
Residential Mortgage
|
|
Home Equity and
Other Consumer
|
|||||||||||||||||||||||||
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
||||||||||||||||
|
(In thousands)
|
|||||||||||||||||||||||||||||||||
New England
|
$
|
480,452
|
|
|
77
|
%
|
|
$
|
625,328
|
|
|
40
|
%
|
|
$
|
78,149
|
|
|
60
|
%
|
|
$
|
1,217,654
|
|
|
69
|
%
|
|
$
|
231,047
|
|
|
72
|
%
|
San Francisco Bay
|
60,065
|
|
|
10
|
%
|
|
670,469
|
|
|
43
|
%
|
|
42,286
|
|
|
32
|
%
|
|
321,110
|
|
|
18
|
%
|
|
66,462
|
|
|
21
|
%
|
|||||
Southern California
|
45,001
|
|
|
7
|
%
|
|
170,496
|
|
|
11
|
%
|
|
3,215
|
|
|
3
|
%
|
|
177,320
|
|
|
10
|
%
|
|
17,109
|
|
|
5
|
%
|
|||||
Pacific Northwest
|
34,326
|
|
|
6
|
%
|
|
102,295
|
|
|
6
|
%
|
|
6,920
|
|
|
5
|
%
|
|
51,587
|
|
|
3
|
%
|
|
6,625
|
|
|
2
|
%
|
|||||
Eliminations and other, net
|
(116
|
)
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
1,640
|
|
|
—
|
%
|
|||||
Total
|
$
|
619,728
|
|
|
100
|
%
|
|
$
|
1,568,588
|
|
|
100
|
%
|
|
$
|
130,570
|
|
|
100
|
%
|
|
$
|
1,767,671
|
|
|
100
|
%
|
|
$
|
322,883
|
|
|
100
|
%
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
||||||||||||
|
2011
|
|
2010
|
|
2011
|
|
2010
|
||||||||
|
(In thousands)
|
||||||||||||||
Net loans charged off/ (recovered):
|
|
|
|
|
|
|
|
||||||||
New England
|
$
|
127
|
|
|
$
|
1,784
|
|
|
$
|
1,401
|
|
|
$
|
2,822
|
|
San Francisco Bay
|
2,036
|
|
|
7,216
|
|
|
13,325
|
|
|
9,005
|
|
||||
Southern California
|
(3,552
|
)
|
|
444
|
|
|
(4,638
|
)
|
|
(411
|
)
|
||||
Pacific Northwest
|
739
|
|
|
(293
|
)
|
|
733
|
|
|
532
|
|
||||
Total net loans charged off/(recovered)
|
$
|
(650
|
)
|
|
$
|
9,151
|
|
|
$
|
10,821
|
|
|
$
|
11,948
|
|
|
At and for the three months ended June 30,
|
|
At and for the six months ended June 30,
|
||||||||||||
2011
|
|
2010
|
|
2011
|
|
2010
|
|||||||||
(In thousands)
|
|||||||||||||||
Non-accrual loans, beginning of period (1)
|
$
|
111,236
|
|
|
$
|
84,947
|
|
|
$
|
105,465
|
|
|
$
|
86,770
|
|
Transfers in to non-accrual status
|
40,313
|
|
|
39,527
|
|
|
73,663
|
|
|
59,479
|
|
||||
Transfers out to OREO
|
(5,590
|
)
|
|
(1,030
|
)
|
|
(8,901
|
)
|
|
(7,034
|
)
|
||||
Transfers in from/ (out to) loans held for sale
|
—
|
|
|
—
|
|
|
526
|
|
|
—
|
|
||||
Transfers out to accrual status
|
(41,849
|
)
|
|
(9,307
|
)
|
|
(42,457
|
)
|
|
(9,702
|
)
|
||||
Charge offs
|
(4,359
|
)
|
|
(9,689
|
)
|
|
(16,883
|
)
|
|
(14,930
|
)
|
||||
Paid off/ paid down
|
(19,809
|
)
|
|
(7,220
|
)
|
|
(31,471
|
)
|
|
(17,355
|
)
|
||||
Non-accrual loans, end of period (2)
|
$
|
79,942
|
|
|
$
|
97,228
|
|
|
$
|
79,942
|
|
|
$
|
97,228
|
|
(1)
|
Does not include the loans in the Company's non-strategic Southern California loans held for sale portfolio on non-accrual status of $3.6 million at December 31, 2009, $3.1 million at March 31, 2010 and $1.5 million at December 31, 2010, respectively.
|
(2)
|
Does not include the loans in the Company's non-strategic Southern California loans held for sale portfolio on non-accrual status of $3.0 million as of June 30, 2010.
|
|
June 30, 2011
|
|
December 31, 2010
|
||||
|
(In thousands)
|
||||||
Non-accrual loans:
|
|
|
|
||||
New England
|
$
|
29,095
|
|
|
$
|
25,172
|
|
San Francisco Bay
|
31,753
|
|
|
60,373
|
|
||
Southern California (1)
|
13,226
|
|
|
9,137
|
|
||
Pacific Northwest
|
5,868
|
|
|
10,783
|
|
||
Total non-accrual loans
|
$
|
79,942
|
|
|
$
|
105,465
|
|
Loans 30-89 days past due and accruing:
|
|
|
|
||||
New England
|
$
|
3,060
|
|
|
$
|
12,844
|
|
San Francisco Bay
|
2,304
|
|
|
11,219
|
|
||
Southern California
|
1,137
|
|
|
682
|
|
||
Pacific Northwest
|
—
|
|
|
—
|
|
||
Total loans 30-89 days past due
|
$
|
6,501
|
|
|
$
|
24,745
|
|
Accruing classified loans (2):
|
|
|
|
||||
New England
|
$
|
17,213
|
|
|
$
|
19,745
|
|
San Francisco Bay
|
57,420
|
|
|
62,518
|
|
||
Southern California
|
25,145
|
|
|
6,802
|
|
||
Pacific Northwest
|
3,697
|
|
|
8,373
|
|
||
Total accruing classified loans
|
$
|
103,475
|
|
|
$
|
97,438
|
|
(1)
|
Does not include the loans in the Company's non-strategic Southern California loans held for sale portfolio on non-accrual status of $1.5 million as of December 31, 2010.
|
(2)
|
Accruing classified loans include loans that are classified as substandard or doubtful but are still accruing interest income.
|
|
June 30, 2011
|
|
December 31, 2010
|
||||
|
(In thousands)
|
||||||
Non-accrual loans:
|
|
|
|
||||
Commercial and industrial
|
$
|
3,044
|
|
|
$
|
8,583
|
|
Commercial real estate
|
55,067
|
|
|
66,518
|
|
||
Construction and land (1)
|
6,808
|
|
|
15,323
|
|
||
Residential mortgage
|
12,885
|
|
|
14,111
|
|
||
Home equity and other consumer
|
2,138
|
|
|
930
|
|
||
Total non-accrual loans
|
$
|
79,942
|
|
|
$
|
105,465
|
|
Loans 30-89 days past due and accruing:
|
|
|
|
||||
Commercial and industrial
|
$
|
1,964
|
|
|
$
|
7,456
|
|
Commercial real estate
|
2,705
|
|
|
10,446
|
|
||
Construction and land
|
—
|
|
|
—
|
|
||
Residential mortgage
|
1,318
|
|
|
6,553
|
|
||
Home equity and other consumer
|
514
|
|
|
290
|
|
||
Total loans 30-89 days past due
|
$
|
6,501
|
|
|
$
|
24,745
|
|
Accruing classified loans (2):
|
|
|
|
||||
Commercial and industrial
|
$
|
26,398
|
|
|
$
|
18,502
|
|
Commercial real estate
|
71,961
|
|
|
75,281
|
|
||
Construction and land
|
3,519
|
|
|
2,240
|
|
||
Residential mortgage
|
1,583
|
|
|
971
|
|
||
Home equity and other consumer
|
14
|
|
|
444
|
|
||
Total accruing classified loans
|
$
|
103,475
|
|
|
$
|
97,438
|
|
|
Actual
|
|
For capital adequacy purposes
|
|
To be well capitalized under prompt corrective action provisions
|
|||||||||||||||
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|||||||||
|
(In thousands)
|
|||||||||||||||||||
As of June 30, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total risk-based capital
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
$
|
602,017
|
|
|
15.18
|
%
|
|
$
|
317,254
|
|
|
>8.0
|
|
|
$
|
396,567
|
|
|
>10.0
|
|
Boston Private Bank
|
512,399
|
|
|
12.97
|
|
|
316,066
|
|
|
8.0
|
|
|
395,082
|
|
|
10.0
|
|
|||
Tier I risk-based capital
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
480,722
|
|
|
12.12
|
|
|
158,627
|
|
|
4.0
|
|
|
237,940
|
|
|
6.0
|
|
|||
Boston Private Bank
|
462,375
|
|
|
11.70
|
|
|
158,033
|
|
|
4.0
|
|
|
237,049
|
|
|
6.0
|
|
|||
Tier I leverage capital
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
480,722
|
|
|
8.14
|
|
|
236,146
|
|
|
4.0
|
|
|
295,182
|
|
|
5.0
|
|
|||
Boston Private Bank
|
462,375
|
|
|
7.92
|
|
|
233,583
|
|
|
4.0
|
|
|
291,979
|
|
|
5.0
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
As of December 31, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total risk-based capital
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
$
|
585,020
|
|
|
14.43
|
%
|
|
$
|
324,312
|
|
|
>8.0
|
|
|
$
|
405,390
|
|
|
>10.0
|
|
Boston Private Bank
|
266,082
|
|
|
11.67
|
|
|
182,338
|
|
|
8.0
|
|
|
227,922
|
|
|
10.0
|
|
|||
Borel
|
140,950
|
|
|
11.89
|
|
|
94,821
|
|
|
8.0
|
|
|
118,527
|
|
|
10.0
|
|
|||
FPB
|
51,461
|
|
|
14.83
|
|
|
27,756
|
|
|
8.0
|
|
|
34,695
|
|
|
10.0
|
|
|||
Charter
|
35,324
|
|
|
16.20
|
|
|
17,440
|
|
|
8.0
|
|
|
21,800
|
|
|
10.0
|
|
|||
Tier I risk-based capital
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
528,071
|
|
|
13.03
|
|
|
162,156
|
|
|
4.0
|
|
|
243,234
|
|
|
6.0
|
|
|||
Boston Private Bank
|
237,524
|
|
|
10.42
|
|
|
91,169
|
|
|
4.0
|
|
|
136,753
|
|
|
6.0
|
|
|||
Borel
|
125,724
|
|
|
10.61
|
|
|
47,411
|
|
|
4.0
|
|
|
71,116
|
|
|
6.0
|
|
|||
FPB
|
47,012
|
|
|
13.55
|
|
|
13,878
|
|
|
4.0
|
|
|
20,817
|
|
|
6.0
|
|
|||
Charter
|
32,545
|
|
|
14.93
|
|
|
8,720
|
|
|
4.0
|
|
|
13,080
|
|
|
6.0
|
|
|||
Tier I leverage capital
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Company
|
528,071
|
|
|
8.77
|
|
|
240,741
|
|
|
4.0
|
|
|
300,926
|
|
|
5.0
|
|
|||
Boston Private Bank
|
237,524
|
|
|
6.93
|
|
|
137,193
|
|
|
4.0
|
|
|
171,492
|
|
|
5.0
|
|
|||
Borel
|
125,724
|
|
|
7.44
|
|
|
67,628
|
|
|
4.0
|
|
|
84,536
|
|
|
5.0
|
|
|||
FPB
|
47,012
|
|
|
9.36
|
|
|
20,099
|
|
|
4.0
|
|
|
25,123
|
|
|
5.0
|
|
|||
Charter
|
32,545
|
|
|
9.39
|
|
|
13,860
|
|
|
4.0
|
|
|
17,325
|
|
|
5.0
|
|
|
Three months ended
June 30,
|
|
% Change
|
|
Six months ended
June 30,
|
|
% Change
|
||||||||||||||
|
2011
|
|
2010
|
|
|
2011
|
|
2010
|
|
||||||||||||
|
(In Thousands)
|
||||||||||||||||||||
Net interest income
|
$
|
46,024
|
|
|
$
|
45,017
|
|
|
2
|
%
|
|
$
|
89,735
|
|
|
$
|
89,327
|
|
|
—
|
%
|
Fees and other income
|
32,313
|
|
|
25,633
|
|
|
26
|
%
|
|
62,407
|
|
|
53,061
|
|
|
18
|
%
|
||||
Total revenue
|
78,337
|
|
|
70,650
|
|
|
11
|
%
|
|
152,142
|
|
|
142,388
|
|
|
7
|
%
|
||||
Provision/ (credit) for loan losses
|
(2,190
|
)
|
|
14,962
|
|
|
nm
|
|
|
11,160
|
|
|
22,577
|
|
|
(51
|
)%
|
||||
Operating expense
|
62,465
|
|
|
56,665
|
|
|
10
|
%
|
|
124,170
|
|
|
112,698
|
|
|
10
|
%
|
||||
Income tax expense/ (benefit)
|
4,229
|
|
|
(1,202
|
)
|
|
nm
|
|
|
4,051
|
|
|
1,134
|
|
|
nm
|
|
||||
Net income/ (loss) from continuing operations
|
13,833
|
|
|
225
|
|
|
nm
|
|
|
12,761
|
|
|
5,979
|
|
|
nm
|
|
||||
Net income/ (loss) from discontinued operations
|
1,516
|
|
|
1,509
|
|
|
—
|
%
|
|
3,186
|
|
|
1,545
|
|
|
nm
|
|
||||
Less: Net income/ (loss) attributable to noncontrolling interests
|
804
|
|
|
616
|
|
|
31
|
%
|
|
1,551
|
|
|
1,301
|
|
|
19
|
%
|
||||
Net income/ (loss) attributable to the Company
|
$
|
14,545
|
|
|
$
|
1,118
|
|
|
nm
|
|
|
$
|
14,396
|
|
|
$
|
6,223
|
|
|
nm
|
|
|
Three Months Ended
|
||||||||||||||||||||
|
Average Balance
|
|
Interest Income/Expense
|
|
Average Yield/Rate
|
||||||||||||||||
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
||||||||||
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
||||||||||
|
(In thousands)
|
|
|
|
|
||||||||||||||||
Earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Taxable investment securities (1)
|
$
|
367,567
|
|
|
$
|
305,139
|
|
|
$
|
1,391
|
|
|
$
|
1,624
|
|
|
1.51
|
%
|
|
2.13
|
%
|
Non-taxable investment securities (1) (2)
|
187,379
|
|
|
187,908
|
|
|
1,403
|
|
|
1,937
|
|
|
2.99
|
%
|
|
4.12
|
%
|
||||
Mortgage-backed securities (1)
|
228,578
|
|
|
223,954
|
|
|
1,841
|
|
|
1,894
|
|
|
3.22
|
%
|
|
3.38
|
%
|
||||
Federal funds sold and other
|
462,350
|
|
|
505,463
|
|
|
283
|
|
|
277
|
|
|
0.25
|
%
|
|
0.22
|
%
|
||||
Loans (3):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial, construction and land (2)
|
2,400,681
|
|
|
2,605,125
|
|
|
33,819
|
|
|
35,414
|
|
|
5.49
|
%
|
|
5.41
|
%
|
||||
Residential mortgage
|
1,742,769
|
|
|
1,563,746
|
|
|
19,131
|
|
|
19,251
|
|
|
4.39
|
%
|
|
4.92
|
%
|
||||
Home equity and other consumer
|
316,268
|
|
|
277,473
|
|
|
2,971
|
|
|
3,842
|
|
|
3.75
|
%
|
|
5.52
|
%
|
||||
Total loans
|
4,459,718
|
|
|
4,446,344
|
|
|
55,921
|
|
|
58,507
|
|
|
4.94
|
%
|
|
5.25
|
%
|
||||
Total earning assets
|
$
|
5,705,592
|
|
|
$
|
5,668,808
|
|
|
$
|
60,839
|
|
|
$
|
64,239
|
|
|
4.20
|
%
|
|
4.52
|
%
|
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
$
|
3,456,988
|
|
|
$
|
3,530,736
|
|
|
$
|
6,301
|
|
|
$
|
9,381
|
|
|
0.73
|
%
|
|
1.07
|
%
|
Borrowed funds
|
836,500
|
|
|
810,826
|
|
|
6,685
|
|
|
8,093
|
|
|
3.17
|
%
|
|
3.96
|
%
|
||||
Total interest-bearing liabilities
|
$
|
4,293,488
|
|
|
$
|
4,341,562
|
|
|
$
|
12,986
|
|
|
$
|
17,474
|
|
|
1.21
|
%
|
|
1.61
|
%
|
Net interest income - on a Fully Taxable Equivalent basis (FTE)
|
|
|
|
|
$
|
47,853
|
|
|
$
|
46,765
|
|
|
|
|
|
||||||
Less: FTE adjustment
|
|
|
|
|
1,829
|
|
|
1,748
|
|
|
|
|
|
||||||||
Net interest income (GAAP basis)
|
|
|
|
|
$
|
46,024
|
|
|
$
|
45,017
|
|
|
|
|
|
||||||
Interest rate spread
|
|
|
|
|
|
|
|
|
2.99
|
%
|
|
2.91
|
%
|
||||||||
Net interest margin (NIM)
|
|
|
|
|
|
|
|
|
3.29
|
%
|
|
3.29
|
%
|
|
Six Months Ended
|
||||||||||||||||||||
|
Average Balance
|
|
Interest Income/Expense
|
|
Average Yield/Rate
|
||||||||||||||||
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
||||||||||
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
||||||||||
|
(In thousands)
|
|
|
|
|
||||||||||||||||
Earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Taxable investment securities (1)
|
$
|
364,431
|
|
|
$
|
283,341
|
|
|
$
|
2,770
|
|
|
$
|
3,129
|
|
|
1.52
|
%
|
|
2.21
|
%
|
Non-taxable investment securities (1) (2)
|
194,789
|
|
|
185,732
|
|
|
3,057
|
|
|
3,977
|
|
|
3.14
|
%
|
|
4.28
|
%
|
||||
Mortgage-backed securities (1)
|
231,887
|
|
|
250,609
|
|
|
3,648
|
|
|
4,326
|
|
|
3.15
|
%
|
|
3.45
|
%
|
||||
Federal funds sold and other
|
497,543
|
|
|
604,459
|
|
|
604
|
|
|
720
|
|
|
0.24
|
%
|
|
0.24
|
%
|
||||
Loans (3):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial, construction and land (2)
|
2,423,320
|
|
|
2,570,211
|
|
|
66,134
|
|
|
73,002
|
|
|
5.42
|
%
|
|
5.65
|
%
|
||||
Residential mortgage
|
1,714,044
|
|
|
1,537,790
|
|
|
37,860
|
|
|
38,137
|
|
|
4.42
|
%
|
|
4.96
|
%
|
||||
Home equity and other consumer
|
306,302
|
|
|
278,119
|
|
|
5,838
|
|
|
6,302
|
|
|
3.83
|
%
|
|
4.54
|
%
|
||||
Total loans
|
4,443,666
|
|
|
4,386,120
|
|
|
109,832
|
|
|
117,441
|
|
|
4.92
|
%
|
|
5.34
|
%
|
||||
Total earning assets
|
$
|
5,732,316
|
|
|
$
|
5,710,261
|
|
|
$
|
119,911
|
|
|
$
|
129,593
|
|
|
4.17
|
%
|
|
4.53
|
%
|
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
$
|
3,459,648
|
|
|
$
|
3,570,943
|
|
|
$
|
12,951
|
|
|
$
|
20,011
|
|
|
0.75
|
%
|
|
1.13
|
%
|
Borrowed funds
|
863,848
|
|
|
840,238
|
|
|
13,490
|
|
|
16,724
|
|
|
3.11
|
%
|
|
3.97
|
%
|
||||
Total interest-bearing liabilities
|
$
|
4,323,496
|
|
|
$
|
4,411,181
|
|
|
$
|
26,441
|
|
|
$
|
36,735
|
|
|
1.23
|
%
|
|
1.67
|
%
|
Net interest income - on a Fully Taxable Equivalent basis (FTE)
|
|
|
|
|
$
|
93,470
|
|
|
$
|
92,858
|
|
|
|
|
|
||||||
Less: FTE adjustment
|
|
|
|
|
3,735
|
|
|
3,531
|
|
|
|
|
|
||||||||
Net interest income (GAAP basis)
|
|
|
|
|
$
|
89,735
|
|
|
$
|
89,327
|
|
|
|
|
|
||||||
Interest rate spread
|
|
|
|
|
|
|
|
|
2.94
|
%
|
|
2.86
|
%
|
||||||||
Net interest margin (NIM)
|
|
|
|
|
|
|
|
|
3.25
|
%
|
|
3.24
|
%
|
Exhibit No.
|
|
Description
|
|
Incorporated by Reference
|
|
Filed or
Furnished
with this
10-Q
|
||||
Form
|
|
SEC Filing
Date
|
|
Exhibit
Number
|
|
|||||
10.1
|
|
Annual Executive Incentive Plan of Boston Private Financial Holdings, Inc.
|
|
8-K
|
|
5/2/2011
|
|
99.1
|
|
|
10.2
|
|
Form of Time-Vesting Restricted Stock Agreement Under the Boston Private Financial Holdings, Inc. 2009 Stock Option and Incentive Plan
|
|
|
|
|
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Filed
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10.3
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Form of Performance Restricted Stock Agreement Under the Boston Private Financial Holdings, Inc. 2009 Stock Option and Incentive Plan
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Filed
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10.4
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Form of Non-Qualified Stock Option Agreement for Employees Under the Boston Private Financial Holdings, Inc. 2009 Stock Option and Incentive Plan
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Filed
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31.1
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Certification of Chief Executive Officer pursuant to Rule 13a - 14(a)/15d - 14(a) under the Securities Exchange Act of 1934
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Filed
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31.2
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Certification of Chief Financial Officer pursuant to Rule 13a - 14(a)/15d - 14(a) under the Securities Exchange Act of 1934
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Filed
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32.1
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Certification of the Chief Executive Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
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Furnished
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32.2
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Certification of the Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
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Furnished
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101.INS
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XBRL Instance Document
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Furnished
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101.SCH
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XBRL Taxonomy Extension Schema Document
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Furnished
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101.CAL
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XBRL Taxonomy Extension Calculation Linkbase Document
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Furnished
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101.DEF
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XBRL Taxonomy Extension Definition Linkbase Document
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Furnished
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101.LAB
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XBRL Taxonomy Extension Label Linkbase Document
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Furnished
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101.PRE
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XBRL Taxonomy Extension Presentation Linkbase Document
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Furnished
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B
OSTON
P
RIVATE
F
INANCIAL
H
OLDINGS
, I
NC
.
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/s/ C
LAYTON
G. D
EUTSCH
|
August 5, 2011
|
Clayton G. Deutsch
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|
President and Chief Executive Officer
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/s/ D
AVID
J. K
AYE
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August 5, 2011
|
David J. Kaye
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Executive Vice President and
Chief Financial Officer
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Number
of Shares Vested
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Vesting Date
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Boston Private Financial Holdings, Inc.
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By:
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Title:
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Dated:
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Grantee's Signature
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Grantee's name:
|
BOSTON PRIVATE FINANCIAL
HOLDINGS, INC.
|
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By:
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Title:
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Dated:
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Grantee's Signature
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Grantee's name:
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Performance Level
|
ROE for 2013 Fiscal Year
|
Percentage of Target
Award Earned
(1)
|
Threshold
|
8%
|
50%
|
Target
|
12%
|
100%
|
Significant Overachievement
|
13%
|
150%
|
Incremental Number of
Option Shares Exercisable
|
|
Exercisability Date
|
||||
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Boston Private Financial Holdings, Inc.
|
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By:
|
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Title:
|
Dated:
|
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Optionee's Signature
|
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Optionee's name:
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Boston Private Financial Holdings, Inc. (the “registrant”);
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
|
|
/s/ C
LAYTON
G. D
EUTSCH
|
Date: August 5, 2011
|
|
Clayton G. Deutsch
President and Chief Executive Officer
|
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Boston Private Financial Holdings, Inc. (the “registrant”);
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
|
|
/s/ David J. Kaye
|
Date: August 5, 2011
|
|
David J. Kaye
Chief Financial Officer
|
|
|
|
|
|
|
/s/ CLAYTON G. DEUTSCH
|
|
|
|
|
|
Clayton G. Deutsch
President and Chief Executive Officer
|
Date: August 5, 2011
|
|
|
|
|
|
|
|
|
|
/s/ DAVID J. KAYE
|
|
|
|
|
|
David J. Kaye
Chief Financial Officer
|
Date: August 5, 2011
|
|
|
|
|