Exhibit 99.1
STATEMENT
OF FINANCIAL
CONDITION
AS OF JUNE 30, 2005
BOSTON PRIVATE BANK & TRUST COMPANY
Dear Friend,
It is a pleasure to be able to report that we have had a very successful first half of 2005. I am delighted to say that the Bank reached two major milestones with both our banking assets and assets under management exceeding $2 billion!
2005 First Half Financial Highlights:
| | • | | Net income for the first half of the fiscal year reached $9.7 million, up 35% compared to the six months ended June 30, 2004. |
| | • | | Assets under management increased by 19% to $2.3 billion, with fee income up 9%. |
| | • | | Balance sheet assets grew 15%, closing the second quarter at $2.1 billion. |
| | • | | Total loans and deposits grew to $1.4 billion and $1.5 billion, respectively. |
Boston Private Bank is proud to be an increasingly more significant part of the vibrant Boston community. We are a locally-based financial services firm, serving successful individuals and businesses. Our aim is to help our clients accumulate, preserve and grow their wealth. We have worked hard to earn our reputation as a trusted advisor, and as a company that maintains a high level of client privacy.
The Bank’s strategic plan calls for solid growth as we strive to become the premier provider of private banking and wealth management services in the region. We have excellent momentum as we head into the second half of the year. I am confident we will continue expanding our market share and reputation for exceptional client service.
I want to thank our Board of Directors and our employees for their commitment to Boston Private Bank, and our clients for their continued loyalty. We will continue to work hard to earn your trust and confidence.
|
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| Mark D. Thompson |
| Chief Executive Officer |
Boston Private Bank & Trust Company
CONDENSED BALANCE SHEETS
(Unaudited)
| | | | | | | | |
| | | June 30,
| |
($ in Thousands)
| | 2005
| | | 2004
| |
Assets | | | | | | | | |
Cash & Short Term Investments | | $ | 112,885 | | | $ | 35,578 | |
Investment Securities | | | 475,077 | | | | 485,226 | |
Loans Held for Sale | | | 8,721 | | | | 6,068 | |
| | |
Commercial Loans | | | 579,222 | | | | 506,524 | |
Mortgage Loans | | | 793,234 | | | | 681,775 | |
Home Equity & Other Loans | | | 58,692 | | | | 50,867 | |
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Total Loans | | | 1,431,148 | | | | 1,239,166 | |
Less: Allowance for Loan Losses | | | (14,896 | ) | | | (12,734 | ) |
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Net Loans | | | 1,416,252 | | | | 1,226,432 | |
Other Assets | | | 51,701 | | | | 47,922 | |
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Total Assets | | $ | 2,064,636 | | | $ | 1,801,226 | |
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Liabilities & Shareholder’s Equity | | | | | | | | |
Demand deposits | | $ | 261,830 | | | $ | 212,255 | |
NOW accounts | | | 187,651 | | | | 178,089 | |
Savings & Money Market | | | 959,548 | | | | 864,797 | |
Certificates of Deposit | | | 117,301 | | | | 115,076 | |
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Total Deposits | | | 1,526,330 | | | | 1,370,217 | |
| | |
Borrowings | | | 389,891 | | | | 306,999 | |
Other Liabilities | | | 20,774 | | | | 15,495 | |
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Total Liabilities | | | 1,936,995 | | | | 1,692,711 | |
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Shareholder’s Equity | | | 127,641 | | | | 108,515 | |
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Total Liabilities & Shareholder’s Equity | | $ | 2,064,636 | | | $ | 1,801,226 | |
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| Boston Private Bank & Trust Company | | | | | | | | |
| CONDENSED STATEMENTS OF INCOME | | | | | | | | |
| (Unaudited) | | | | | | | | |
| | | Six Months Ended June 30,
| |
($ in Thousands)
| | 2005
| | | 2004
| |
Interest Income | | $ | 44,665 | | | $ | 34,761 | |
Interest Expense | | | 14,960 | | | | 11,134 | |
| | |
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Net Interest Income | | | 29,705 | | | | 23,627 | |
Provision for Loan Losses | | | 629 | | | | 830 | |
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Net Interest Income after Provision | | | 29,076 | | | | 22,797 | |
Investment Management Fees | | | 6,298 | | | | 5,721 | |
Banking Fees and Other Income | | | 2,222 | | | | 1,565 | |
Operating Expenses | | | 24,260 | | | | 20,651 | |
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Income Before Income Taxes | | | 13,336 | | | | 9,432 | |
Income Taxes | | | 3,594 | | | | 2,202 | |
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Net Income | | $ | 9,742 | | | $ | 7,230 | |
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| Boston Private Bank & Trust Company | | | | | | | | |
| SELECTED FINANCIAL DATA | | | | | | | | |
| (Unaudited) | | | | | | | | |
| | | Six Months Ended June 30,
| |
($ in Thousands)
| | 2005
| | | 2004
| |
Average Assets Under Management | | $ | 2,283,000 | | | $ | 1,955,000 | |
Return on Average Assets | | | 0.98 | % | | | 0.83 | % |
Return on Average Equity | | | 16.57 | % | | | 13.31 | % |
Net Interest Margin | | | 3.32 | % | | | 3.02 | % |
Total Fees and Other Income / Revenues | | | 22.29 | % | | | 23.57 | % |
Allowance for Loan Losses and Off-Balance Sheet Risk / Total Loans | | | 1.23 | % | | | 1.21 | % |
| | |
| Board of Directors | | Policy Group |
| |
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 Christopher W. Collins Chief Executive Officer Collins, Nickas & Company, LLC 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 General Partner & Chief Financial Officer 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. | | Mark D. Thompson Chief Executive Officer James D. Dawson President Chief Operating Officer James C. Brown Executive 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 G. 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 |
HEADQUARTERS: TEN POST OFFICE SQUARE· BOSTON, MASSACHUSETTS 02109
TELEPHONE: 617-912-1900·WWW.BOSTONPRIVATEBANK.COM
Member of Boston Private Wealth Management Group
