This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

10 Community Bank M&A Targets, Revisited

5. Boston Private Financial Holdings

Shares of Boston Private Financial Holdings (BPFH) closed at $5.86 Wednesday, down 10% year-to-date.

The company had $6 billion in total assets as of June 30.

KBW Chris McGratty told TheStreet earlier this year that that Boston Private was "a good opportunity for investors to consider," since it had "been under a lot of stress and has raised capital from Carlyle," with the private equity investor looking to "monetize that in the next 18 months."

Carlyle Financial Services Ltd. and affiliates controlled just under 10% of Boston Private's common shares, according to a late-August filing.

Over the past year, major events for Boston Private have included the company's repayment of its remaining TARP preferred shares last June, the appointment of Clayton Deutsch as new CEO, various other board of directors and senior management changes, the consolidation of its three banking subsidiaries, and $35 million in common equity raised.

Boston Private reported second-quarter net income attributable to common shareholders of $14.3 million, or 19 cents a share, compared to a net loss of $5 million, or seven cents a share, in the second quarter of 2010. The second quarter profit mainly reflected a $2.2 million transfer from loan loss reserves. A year earlier, the company added $15 million to reserves.

Boston Private reported net recoveries during the second quarter of $650 thousand, since recoveries on previously charged-off loans exceeded newly recorded loan losses.

Nonperforming assets totaled $94.4 million, or 1.56% of total assets as of June 30 declining from 1.92% a year earlier. Loan loss reserves covered 2.24% of total loans as of June 30.

Total revenue increased 11% year-over-year, to $78.3 million in the second quarter.

Following the earnings announcement, Christopher Marinac of FIG Partners reiterated his neutral "market perform" rating for Boston Private, saying "patient investors may see a $10 stock price if they are willing to wait for the company to deliver on pledged cost reductions and then execute on moderate external growth in loans, investment management revenues, and overall profits."

The shares trade for 10 times the 2012 earnings estimate of 55 cents a share.

Out of eight analysts covering Boston Private, two rate the shares a buy, while the remaining analysts all have neutral ratings.
7 of 11

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BAC $17.48 0.00%
BXS $26.86 0.00%
COF $79.00 0.00%
FMBI $19.60 0.00%
RF $10.17 0.00%


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs