Boston Private Financial Holdings (BPFH ) has completed the sale of Florida-based Gibraltar Private Bank & Trust for $93 million to private investors.
Reportedly, the key elements of the Gibraltar Private sale include: $93 million in cash proceeds; $1.4 billion reduction in total assets, increasing BPFH’s key TCE/TA ratio by approximately 100 basis points to 6.2%; $50 million reduction of non-performing assets, a 34% decline; $91 million reduction in classified loans, a 39% decline and one-time book loss of approximately $35 million, with $17 million reduction to tangible capital.
BPFH has said that Steve Hayworth, CEO of Gibraltar Private, will continue to serve as Gibraltar Private’s CEO along with bank personnel and management. Moreover, the bank will continue to be headquartered in Coral Gables and retain its branch office in New York.
Timothy Vaill, chairman and CEO of BPFH, said: “This transaction improves our capital position, strengthens our balance sheet and improves our consolidated credit metrics. It also increases our liquidity, creating flexibility that opens up a variety of options such as reallocating capital to our strongest performers to drive organic growth, reducing debt, and optimizing our capital structure. This sale enables BPFH to exit the Florida market while receiving fair value for our investment.”