Boston Private Financial Holdings, Inc. (NASDAQ: BPFH) (the “Company” or “BPFH”) today announced that its wholly-owned subsidiary, Boston Private Bank & Trust Company, entered into an agreement to sell its three Pacific Northwest offices to Sterling Financial Corporation (NASDAQ: STSA) of Spokane, Washington.
The three offices are located in Seattle, Bellevue, and Redmond, Washington. As of September 30, 2012, the Pacific Northwest offices had approximately $270 million in gross loans and $190 million in deposits.
“This transaction will allow us to concentrate our private banking resources in our New England, San Francisco Bay Area and Southern California markets,” said Clayton G. Deutsch, CEO and President of Boston Private Financial Holdings, Inc. “The San Francisco Bay Area and Southern California markets represent two of the three deepest concentrations of high net worth clients in the United States. Following the sale, we will continue to focus on building our client facing businesses in New England, the San Francisco Bay Area, and Southern California. These are all deep and dynamic markets for us.”
“This transaction will result in an $11 million deposit premium and will free up in excess of $30 million in capital which will provide us with the flexibility to invest in growth or to return it to our shareholders. This is part of our ongoing effort to release capital anywhere where we believe it is deployed below an acceptable return. We look forward to working closely with Sterling to ensure a smooth transition for clients and employees,” concluded Mr. Deutsch.
The Company expects the deal to close in the first half of 2013. Additional terms of the transaction were not disclosed.
Goldman, Sachs & Co. served as financial advisor and Goodwin Procter LLP served as legal advisor to BPFH in this transaction.
Boston Private Financial Holdings, Inc.
Boston Private Financial Holdings, Inc. is a national financial services organization with Wealth Management and Private Banking affiliates in Boston, New York, Los Angeles, San Francisco Bay Area and Seattle. The Company has a $6 billion Private Banking balance sheet, and manages over $20 billion of client assets.