Boston Private Financial (BPHF) Gains on Strong 2013 Earnings, Increased Dividend

Jacob Harper |

Boston Private Financial Holdings ($BPHF), a national financial services organization that manages $20 billion in client assets and sports locations in New England, New York, and California, simultaneously reported both full-year and fourth quarter earnings after the bell on Jan 15. The earnings report was positive, showing the company increased profits significantly by trimming operating expenses and growing both traditional banking and wealth management revenue.

Concurrently with the release of the fourth quarter earnings report Boston Private Financial raised the dividend payable to stockholders from $0.07 to $0.08 a share, payable on Feb 21. Solid earnings combined with the dividend hike caused a spike in the company’s share price in early Jan 16 market action.



In the report, CEO Clayton Deutsch attributed the growth to single-digit loan and deposit growth, a double-digit uptick in wealth revenue, and “expense discipline.” Deutsch provided a generally rosy outlook for Boston Financial, saying “we see momentum in our businesses (and) believe we have a strong balance sheet and capital base” going forward.

For their fourth quarter 2013 earnings report, Boston Financial reported a net gain of $16.06 million, or $0.20 per share, versus the net profit of $11.57 million, or $0.15 per share, from the same period a year ago. Revenue for the quarter was $80.05 million, as compared to $78.8 million from the same quarter the previous year. Analysts were expecting a profit of $0.17 per share on revenues of $73.9 million.

Boston Financial simultaneously reported earnings for the 2013 full fiscal year. The company reported $70.3 million in profits, or $0.68 per share, versus $53.3 million, or $0.61 per share for FY 2012.

Boston Financial’s stock rose on the strong fourth quarter and year-end results. By midday, the company‘s shares were trading at $12.99 apiece, up 7.09 percent from the previous day’s close. The company has been regaining traction slowly since the 2008 financial crisis, with shares gaining over 40 percent in value from the same date one year ago.

 

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