Boston Private Financial Holdings Inc (BPFH)

[ScovilleUnits]

repurchased $44.5mil of it's convertible trust preferred securities

On November 23, 2009 and November 24, 2009, Boston Private Financial Holdings, Inc. (the “Company”) repurchased a total of $44.5 million of its publicly traded convertible trust preferred securities (the “Trust Preferred Securities”) issued in 2004 by Boston Private Capital Trust I, a wholly-owned subsidiary of the Company. The average price paid for the Trust Preferred Securities was approximately 56% of the par value which is a 44% discount to the original issuance price. The aggregate cost of the transactions was $24.9 million. These repurchases are expected to result in an after tax gain, including transaction fees, of approximately $10.8 million, or approximately $0.16 per share in the fourth quarter of 2009. Although currently not anticipated in the near future, the Company may, from time to time, and subject to applicable regulatory approvals, make additional repurchases of the Trust Preferred Securities, depending on market conditions and liquidity.

The Company’s rationale for repurchasing the Trust Preferred Securities at this time was to take advantage of the discount at which the Trust Preferred Securities were trading in the market. Accordingly, as required under the terms of the TARP Capital Purchase Program agreements, the Company sought and obtained consent of the U.S. Treasury for repurchases at a cost of up to $25 million. The gain on the transactions increases the Company’s Tangible Common Equity to Tangible Assets ratio by approximately 22 basis points. The funds for the repurchases came from the Company’s liquid assets which were approximately $231 million at September 30, 2009. In addition, the Company will save approximately $1.3 million in interest expense, net of tax, annually from the repurchases, or approximately $0.02 per share.

The Company uses certain non-GAAP financial measures, such as the Tangible Common Equity to Tangible Assets ratio, to provide information for investors to effectively analyze financial trends of ongoing business activities, and to enhance comparability with peers across the financial sector. A reconciliation from the Company’s GAAP Total Equity to Total Assets ratio to the Non-GAAP Tangible Common Equity to Tangible Assets ratio is presented below:

8-K ~ http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=6629932