Exhibit 99.1
STATEMENT
OF FINANCIAL
CONDITION
AS OF DECEMBER 31, 2005
BOSTON PRIVATE BANK & TRUST COMPANY
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
Christopher W. Collins
Chief Executive Officer
Collins, Nickas & Company, LLC
W. Pearce Coues
Former Chairman
MGI Properties
Joseph H. Cromarty
President, Eastern Region
Boston Private Financial Holdings, Inc.
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
President &ManagingShareholder
Palmer and Corbett, PC
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.
Policy Group
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
Amy E. Hunter
Executive Vice President
Pilar Pueyo
SeniorVice President
Anne L. Randall
Executive Vice President
Chief Financial Officer
George G. Schwartz
Executive Vice President
Treasurer
John J. Sullivan
Senior Vice President
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
Lexington Office
1666 Massachusetts Avenue
Lexington, Massachusetts
(617) 912-3600
HEADQUARTERS TEN POST OFFICE SQUARE· BOSTON, MASSACHUSETTS 02109
TELEPHONE: 617-912-1900·WWW.BOSTONPRIVATEBANK.COM
Member of Boston Private Wealth Management Group
Dear Friend,
When asked how our bank remainscompetitive in an ever-changing financiallandscape, the answer is our staff. Staff members who are not only accessible and responsive, but have the experience, knowledge, and expertise to serve as trusted advisors to each one of our clients. This approach allows us to develop long-term relationships, which are important when clients need to make major financial decisions such as buying a home, growing or selling a business, or planning for retirement by growing and protecting their wealth. It is an approach that has proven successful since we opened our doors in 1987.
I am pleased to report that 2005 proved to be another successful year in our Bank’s history.
2005 Financial Highlights:
| | • | | Net income of $20.2 million, up 33% over the prior year. |
| | • | | Balance sheet assets grew 18% to $2.2 billion. |
| | • | | Assets under management grew to $2.3 billion, an increase of 15% over 2004. |
| | • | | Total deposits and loans grew 18% and 13%, respectively, over 2004. |
While we celebrate the end of another strong year supported by robust new business, we are simultaneously investing in our future, building our infrastructure, attracting top-notch people to join our staff, and continuing to make an impact in the community. We finished the year with the opening of our eighth full-service office in Lexington, Massachusetts, and within the next 18 months, we plan to open two new full-service offices in Hingham and Beverly, Massachusetts.
We believe that our commitment to exceptional personal service, relationship management, and performance will continue to set us apart from our competition. It is our vision to be the premier private bank and wealth management company in the region.
We look forward to continuing to earn your trust and confidence in the months and years ahead.
|
|
 |
Mark D. Thompson Chief Executive Officer |
| | | | | | | | |
Boston Private Bank & Trust Company | | | | | | | | |
CONDENSED BALANCE SHEETS | | | | | | | | |
| (Unaudited) | | December 31, | |
| | |
($ in Thousands) | | 2005 | | | 2004 | |
Assets | | | | | | | | |
Cash & Short Term Investments | | $ | 152,163 | | | $ | 21,501 | |
Investment Securities | | | 476,265 | | | | 451,118 | |
Loans Held for Sale | | | 4,909 | | | | 12,799 | |
Commercial Loans | | | 674,521 | | | | 577,314 | |
Mortgage Loans | | | 821,665 | | | | 729,921 | |
Home Equity & Other Loans | | | 53,138 | | | | 58,385 | |
| | | | | | | | |
Total Loans | | | 1,549,324 | | | | 1,365,620 | |
Less: Allowance for Loan Losses | | | (16,507 | ) | | | (14,281 | ) |
| | | | | | | | |
Net Loans | | | 1,532,817 | | | | 1,351,339 | |
Other Assets | | | 62,799 | | | | 49,249 | |
| | | | | | | | |
Total Assets | | $ | 2,228,953 | | | $ | 1,886,006 | |
| | | | | | | | |
Liabilities & Shareholder’s Equity | | | | | | | | |
Demand Deposits | | $ | 301,210 | | | $ | 223,989 | |
NOW Accounts | | | 153,795 | | | | 146,276 | |
Savings & Money Market | | | 1,035,117 | | | | 886,833 | |
Certificates of Deposit | | | 143,766 | | | | 129,786 | |
| | | | | | | | |
Total Deposits | | | 1,633,888 | | | | 1,386,884 | |
Borrowings | | | 433,519 | | | | 364,215 | |
Other Liabilities | | | 23,814 | | | | 16,340 | |
| | | | | | | | |
Total Liabilities | | | 2,091,221 | | | | 1,767,439 | |
| | | | | | | | |
Shareholder’s Equity | | | 137,732 | | | | 118,567 | |
| | | | | | | | |
Total Liabilities & Shareholder’s Equity | | $ | 2,228,953 | | | $ | 1,886,006 | |
| | | | | | | | |
| | |
Boston Private Bank & Trust Company | | | | | | | | |
CONDENSED STATEMENTS OF INCOME | | | | | | | | |
| (Unaudited) | | Year Ended December 31, | |
| | |
($ in Thousands) | | 2005 | | | 2004 | |
Interest Income | | $ | 95,862 | | | $ | 73,727 | |
Interest Expense | | | 33,717 | | | | 23,163 | |
| | | | | | | | |
Net Interest Income | | | 62,145 | | | | 50,564 | |
Provision for Loan Losses | | | 2,266 | | | | 2,375 | |
| | | | | | | | |
Net Interest Income after Provision | | | 59,879 | | | | 48,189 | |
Investment Management Fees | | | 13,342 | | | | 11,928 | |
Banking Fees and Other Income | | | 3,082 | | | | 2,587 | |
Operating Expenses | | | 48,445 | | | | 42,686 | |
| | | | | | | | |
Income Before Income Taxes | | | 27,858 | | | | 20,018 | |
Income Taxes | | | 7,696 | | | | 4,803 | |
| | | | | | | | |
Net Income | | $ | 20,162 | | | $ | 15,215 | |
| | | | | | | | |
| | |
Boston Private Bank & Trust Company | | | | | | | | |
SELECTED FINANCIAL DATA | | | | | | | | |
| (Unaudited) | | Year Ended December 31, | |
| | |
($ in Thousands) | | 2005 | | | 2004 | |
Average Assets Under Management | | $ | 2,257,000 | | | $ | 1,920,000 | |
Return on Average Banking Assets | | | 0.99 | % | | | 0.85 | % |
Return on Average Equity | | | 15.85 | % | | | 13.74 | % |
Net Interest Margin | | | 3.38 | % | | | 3.17 | % |
Total Fees and Other Income / Revenues | | | 20.90 | % | | | 22.30 | % |
Allowance for Loan Losses / Total Loans | | | 1.07 | % | | | 1.05 | % |
