Boston Private Financial Holdings Inc. sold Gibraltar Private Bank & Trust Co. for $93 million in cash and will sell Rinet Co. LLC to the affiliate's management team for an undisclosed price.
Boston Private's shares rose 2.6% to $5.53 after resuming from an earlier halt in after-hours trading. The stock has lost more than 40% of its value in the past year.
Timothy L. Vaill, chairman and chief executive of the bank holding company, said the Gibraltar sale improves Boston Private's capital position, strengthens the balance sheet and increases liquidity.
The sale also allows Boston Private to leave the Florida market, which has been hit especially hard by the housing downturn.
"While Gibraltar has outperformed many of its South Florida peers, the market continues to experience economic stress with a long-term projected recovery," Vaill added.
Gibraltar has about $1.4 billion in assets, while Boston Private had about $7.3 billion as of June 30.
No changes are planned in Gibraltar or Rinet's management, personnel or locations.
Rinet is a wealth advisory firm catering to very high-net-worth clients. That sale isn't expected to have a material impact on Boston Private's earnings or financial position.
"This transaction is a good opportunity for BPFH to reallocate resources toward the growth of our other affiliates in New England and elsewhere across the country," said Jay Cromarty, chief executive of the company's wealth advisory and investment management business.
