Boston Private Financial Holdings Inc. has put some of its excess capital to work by repurchasing 5.4 million warrants in a move that would eliminate potential dilution.

The warrants were mostly held by private-equity firm Carlyle Group, Boston Private's largest shareholder, and John Morton 3rd, an outside director. The $6 billion-asset company paid $15 million on Tuesday for the warrants.

"The company has been in capital accumulation mode for some time, and this transaction provided a unique opportunity to utilize our excess cash in a transaction beneficial to [Boston Private] and our shareholders," said David J. Kaye, the company’s chief financial officer, in a press release. At Dec. 31,  Boston Private had a tangible common equity ratio of 7.37%. 

The $15 million expense is expected to be partially offset by the company's sale of Davidson Trust Co. to Bryn Mawr Bank Corp. for $10.5 million. That deal is expected to close in the second quarter.

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