Exhibit 99.1
Exhibit 99.1
Board of Directors
Herbert S. Alexander
Managing Partner
Alexander, Aronson, Finning &
Company
John H. Clymer
Partner
Nixon Peabody, LLP
Eugene S. Colangelo
Chairman of the Board
Julio Enterprises
Chairman of the Board
Boston Private Bank & Trust Company
W. Pearce Coues
Former Chairman
MGI Properties
James D. Dawson
President & Chief Operating Officer
Boston Private Bank & Trust Company
Kate S. Flather
Private Investor
Kathleen M. Graveline
Private Investor
Charles T. Grigsby
Senior Vice President
Massachusetts Capital Resource Company
Susan P. Haney
Private Investor
E. Christopher Palmer
Certified Public Accountant
Eugene Franklin Rivers, III
Co-Director
National Ten Point Leadership
Foundation
Michael F. Schiavo
Partner & Chief Financial Officer
General Kodiak Venture Partners
Alan D. Solomont
Chairman & Chief Executive Officer
Solomont Bailis Ventures
John Larkin Thompson
Nutter, McClennen & Fish
Mark D. Thompson
Chief Executive Officer
Boston Private Bank & Trust Company
Timothy L. Vaill
Chairman & Chief Executive Officer
Boston Private Financial Holdings, Inc.
Policy Group
Mark D. Thompson
Chief Executive Officer
James D. Dawson
President
Chief Operating Officer
James C. Brown
Senior Vice President
James D. Henderson
Executive Vice President
Barbara M. Houlihan
Executive Vice President
Chief Administrative Officer
Amy E. Hunter
Executive Vice President
Pilar Pueyo
Senior Vice President
Anne L. Randall
Executive Vice President
Chief Financial Officer
George S. Schwartz
Executive Vice President
Treasurer
Office Locations
Headquarters: Boston Office
Ten Post Office Square
Boston, Massachusetts
(617) 912-1900
Wellesley Office
336 Washington Street
Wellesley, Massachusetts
(781) 707-7700
Back Bay Office
500 Boylston Street
Boston, Massachusetts
(617) 912-4500
Jamaica Plain Loan Center
401c Centre Street
Jamaica Plain, Massachusetts
(617) 524-6050
Kendall Square Office
One Cambridge Center
Cambridge, Massachusetts
(617) 646-4800
Newton Centre Office
1223 Centre Street
Newton, Massachusetts
(617) 646-4850
Seaport Office
157 Seaport Boulevard
Boston, Massachusetts
(617) 646-4880
BOSTON PRIVATE BANK & TRUST COMPANY
Member FDIC
EQUAL HOUSING LENDER
HEADQUARTERS: TEN POST OFFICE SQUARE • BOSTON, MASSACHUSETTS 02109
TELEPHONE: 617-912-1900 • WWW.BOSTONPRIVATEBANK.COM
MEMBER OF BOSTON PRIVATE WEALTH MANAGEMENT GROUP
STATEMENT OF FINANCIAL CONDITION
A S O F D E C E M B E R 3 1 , 2 0 0 4
BOSTON PRIVATE BANK & TRUST COMPANY
Dear Friend,
I am delighted to report that 2004 was another successful year for Boston Private Bank & Trust Company.
2004 Financial Highlights:
Net income was $15.2 million, up 17% from 2003.
We experienced robust new business growth and an increasing market share.
Total assets grew by 20% with deposits growing to $1.386 billion.
Total loans grew by $225 million to $1.365 billion.
Assets under management grew to almost $2 billion, with related fee income growing by 15%.
The continued consolidation taking place in the financial service industry represents an exciting opportunity for Boston Private Bank. As a private banking and wealth management company headquartered in Boston, our decisions are made locally. Our business model is well-positioned to meet the growing needs of individual and business clients, and we expect to further expand our market share as a result. To prepare for the expansion, we plan to open two new offices in Lexington and Hingham in 2005.
I would like to take this opportunity to thank our Board of Directors and our employees for their commitment to this institution. Every day, our staff serves as trusted advisors to our clients and they are committed to serving each client’s individual and business needs across four core service offerings: deposit and cash management, residential mortgage, investment management, and commercial banking. It is our high level of individual attention that makes private banking with us distinctive.
And, finally, I would like to thank our clients for their commitment and loyalty to the Bank. We will continue to earn their trust and confidence.
Mark D. Thompson
Chief Executive Officer
Boston Private Bank & Trust Company
CONDENSED BALANCE SHEETS
(Unaudited) December 31,
($ in Thousands) 2004 2003
Assets
Cash & Short Term Investments $21,501 $28,856
Investment Securities 451,118 332,944
Loans Held for Sale 12,799 4,900
Commercial Loans 577,314 466,428
Mortgage Loans 729,921 623,405
Home Equity & Other Loans 58,385 50,490
Total Loans 1,365,620 1,140,323
Less: Allowance for Loan Losses (16,518) (13,943)
Net Loans 1,349,102 1,126,380
Other Assets 49,249 40,392
Total Assets $1,883,769 $1,533,472
Liabilities & Shareholder’s Equity
Demand Deposits $223,989 $183,403
NOW Accounts 146,276 149,344
Savings & Money Market 886,833 719,109
Certificates of Deposit 129,786 93,974
Total Deposits 1,386,884 1,145,830
Borrowings 364,215 266,183
Other Liabilities 14,103 15,995
Total Liabilities 1,765,202 1,428,008
Shareholder’s Equity 118,567 105,464
Total Liabilities & Shareholder’s Equity $1,883,769 $1,533,472
Boston Private Bank & Trust Company
CONDENSED STATEMENTS OF INCOME
(Unaudited) Year Ended December 31,
($ in Thousands) 2004 2003
Interest Income $73,727 $66,561
Interest Expense 23,163 20,844
Net Interest Income 50,564 45,717
Provision for Loan Losses 2,575 2,075
Net Interest Income after Provision 47,989 43,642
Investment Management Fees 11,928 10,413
Banking Fees and Other Income 2,587 6,320
Operating Expenses 42,486 39,883
Income Before Income Taxes 20,018 20,492
Income Taxes 4,803 7,506
Net Income $15,215 $12,986
Boston Private Bank & Trust Company
SELECTED FINANCIAL DATA
(Unaudited) Year Ended December 31,
($ in Thousands) 2004 2003
Average Assets Under Management $1,920,000 $1,770,000
Return on Average Assets 0.85% 0.87%
Return on Average Equity 13.74% 13.46%
Net Interest Margin 3.17% 3.35%
Total Fees and Other Income / Revenues 22.30% 26.79%
Allowance for Loan Losses / Total Loans 1.21% 1.22%
