<PAGE>
FOR IMMEDIATE RELEASE CONTACT: WALTER M. PRESSEY, CFO
(617) 912-1921
PETER A. MORRISSEY
(617) 523-4141
www.bostonprivatebank.com
BOSTON PRIVATE REPORTS STRONG QUARTER
30% EARNINGS INCREASE; DIVIDEND ANNOUNCED
BOSTON, July 20, 2000 - Boston Private Financial Holdings, Inc. (NASDAQ: BPFH)
today reported net income of $2.2 million, or $0.18 per diluted share, for the
quarter ended June 30, 2000. These results mark a 30% increase over the
year-earlier period and continue this wealth management company's strong
earnings growth record. The Company also announced it would pay a dividend of
$0.03 per share, consistent with the prior quarters.
Boston Private Chairman and CEO Timothy L. Vaill, said that the Company
benefited from strong performance by each of its three operating
companies--Boston Private Bank, Westfield Capital Management, and RINET Company.
On June 12, 2000, the Company announced the acquisition of Sand Hill Advisors, a
$1 billion investment management firm located in Menlo Park, California. This
transaction is expected to close during the third quarter of 2000.
"The wealth management business continues to enjoy very robust growth
nationwide", says Vaill, "and we think that the combination of our financial
planning, banking and investment management capabilities places us in a
strong competitive position. We believe this has proven to be the case in the
New England region, and we look forward to extending our expertise into the
California market as well."
Boston Private finished the second quarter with approximately $4 billion in
assets under management, up nearly 32% from June 30, 1999, and up 7% from
year-end. The addition of Sand Hill Advisors will take that total to over $5
billion. There was strong new business growth during the quarter,
particularly at Westfield Capital where small-cap growth investing is a
specialty. Boston Private Bank's balance sheet closed the quarter at $724
million; with average earning assets up $172 million, or 37%, and net
interest margin up 9 basis points, or 2% compared to the year ago quarter.
Loan and deposit growth at the Bank has been strong, with average loans up
28%, and average deposits up 40% as compared to the prior year quarter.
"In the second quarter of 2000, Boston Private had earnings growth of 30%
compared to the same period last year, a return on average equity of 20.98%, and
a return on assets of 1.29%. Our goal is to stay very competitive within our
industry in each of these categories," Vaill said.
DIVIDEND ANNOUNCED
Concurrent with the release of the second quarter 2000 earnings, the Board of
Directors of Boston Private Financial Holdings also declared a quarterly
dividend to shareholders of $0.03 per share. The dividend will be paid on August
15, 2000, to shareholders of record on August 1, 2000.
<PAGE>
"We are proud to share the financial success of this Company with our
shareholders, a number of whom have been with us since the beginning. Many of
our investors continue to add shares to their investment portfolios and are of
significant help to us as we pursue our strategy. We hope that our shareholder
community will be with us for the long-term," Vaill said.
Boston Private Financial Holdings offers a full range of financial planning,
investment management, private banking, commercial and residential lending
services to its domestic and international clientele through its three
subsidiaries: Boston Private Bank & Trust Company, Westfield Capital Management
Company, Inc. and RINET Company, Inc.
Boston Private Bank & Trust Company specializes in providing private banking and
investment services to individuals, their families and businesses. It has an
investment management emphasis on mid to large cap equity and actively managed
fixed income portfolios. Boston Private Bank & Trust Company also offers a First
Time Homebuyer Program and "soft second" mortgage financing. Under its
Accessible Banking Program, the Bank is an active provider of real estate
financing for affordable housing, economic development and small businesses.
Westfield Capital Management Company, whose clients consist of high net worth
individuals, corporate pension funds, endowments and foundations, specializes in
separately managed growth equity portfolios. Westfield also acts as the
investment manager of six limited partnerships that employ a hedging investment
strategy. Its investment services include a particular focus on identifying and
managing small and mid cap equity positions as well as balanced growth accounts.
RINET Company provides fee-only financial planning, tax planning and investment
management services to high net worth individuals and their families. Its
capabilities include tax planning and preparation, asset allocation, estate
planning, charitable planning, planning for employment benefits, including
401(k) plans, alternative investment analysis and mutual fund investing.
Certain matters in this news release may constitute forward-looking statements
within the meaning of the federal securities laws. The Company's actual results
could differ materially from those projected in the forward-looking statements
as the result of, among other factors, changes in loan defaults and charge-off
rates, reduction in deposit levels necessitating increased borrowing to fund
loans and investments, changes in interest rates, and in the securities or
financial markets, or in general economic conditions, changes in assumptions
used in making such forward-looking statements, as well as factors identified
from time to time in the Company's filings with the Securities & Exchange
Commission.
<PAGE>
BOSTON PRIVATE FINANCIAL HOLDINGS, INC.
SELECTED FINANCIAL DATA
<TABLE>
<CAPTION>
(Dollars In Thousands, Except Per Share Data)
------------------------------------ ----------------------------------
June 30, June 30,
2000 1999 $ Change % Change
------------------------------------ ----------------------------------
<S> <C> <C> <C> <C>
FINANCIAL DATA:
Total Balance Sheet Assets $ 730,536 $ 529,052 $ 201,484 38.1%
Stockholders' Equity 43,621 35,448 8,173 23.1%
Total Loans 520,822 394,852 125,970 31.9%
Allowance for Loan Losses 6,224 4,833 1,391 28.8%
Nonperforming Loans 1,110 946 164 17.3%
Other Real Estate Owned - - - 0.0%
Nonperforming Assets 1,110 946 164 17.3%
Deposits 575,525 392,607 182,918 46.6%
Borrowings 103,906 93,833 10,073 10.7%
Book Value Per Share $ 3.70 $ 3.05 $ 0.65 21.3%
Market Price Per Share $ 10.06 $ 7.50 $ 2.56 34.1%
Client Assets Under Management $ 3,921,000 $ 2,980,000 $ 941,000 31.6%
FINANCIAL RATIOS:
Stockholders' Equity/Total Assets 5.97% 6.70% (0.73%) (10.9%)
Nonperforming Loans/Total Loans 0.21% 0.24% (0.03%) (11.0%)
Allowance for Loan Losses/Nonperforming Loans 560.72% 510.89% 49.83% 9.8%
Nonperforming Assets/Total Assets 0.15% 0.18% (0.03%) (15.0%)
------------------------------------ ----------------------------------
<CAPTION>
------------------------------------ ----------------------------------
Three Months Ended
June 30, June 30,
OPERATING RESULTS: 2000 1999 $ Change % Change
------------------------------------ ----------------------------------
Net Interest Income $ 5,961 $ 4,275 $ 1,686 39.4%
Investment Management Fees 5,856 4,381 1,475 33.7%
Financial Planning Fees 844 650 194 29.8%
Equity in Earnings of Partnerships (66) - (66) NA
Gain on Sale of Assets 4 39 (35) (89.7%)
Other Fees 253 236 17 7.2%
------------------------------------ ----------------------------------
Total Revenue 12,852 9,581 3,271 34.1%
Loan Loss Provision 500 186 314 168.8%
Operating Expense 9,176 6,958 2,218 31.9%
------------------------------------ ----------------------------------
Income Before Tax 3,176 2,437 739 30.3%
Income Tax Expense 989 787 202 25.7%
------------------------------------ ----------------------------------
Income before cumulative effect of a change
in accounting principle 2,187 1,650 537 32.5%
Cumulative effect of a change in
accounting principle - - - NA
------------------------------------ ----------------------------------
Net Income $ 2,187 $ 1,650 $ 537 32.5%
==================================== ==================================
PER SHARE DATA:
Basic Earnings Per Share:
Income before cumulative effect of a change
in accounting principle $ 0.19 $ 0.14 $ 0.05 35.1%
Cumulative effect of a change in accounting
principle $ 0.00 $ 0.00 $ 0.00 NA
------------------------------------ ----------------------------------
Net Income $ 0.19 $ 0.14 $ 0.05 35.1%
==================================== ==================================
Diluted Earnings Per Share:
Income before cumulative effect of a change
in accounting principle $ 0.18 $ 0.14 $ 0.04 29.7%
Cumulative effect of a change in accounting
principle $ 0.00 $ 0.00 $ 0.00 NA
------------------------------------ ----------------------------------
Net Income $ 0.18 $ 0.14 $ 0.04 29.7%
==================================== ==================================
Average Common Shares Outstanding 11,719,251 11,593,726 125,525 1.1%
==================================== ==================================
Average Diluted Shares Outstanding 12,155,086 11,895,859 259,227 2.2%
==================================== ==================================
OPERATING RATIOS:
Return on Average Equity 20.98% 19.46% 1.52% 7.8%
Return on Average Assets 1.29% 1.34% (0.05%) (3.7%)
Net Interest Margin 3.81% 3.72% 0.09% 2.4%
Total Fees and Other Income/Total Revenue 53.62% 55.38% (1.76%) (3.2%)
Efficiency Ratio 71.40% 72.62% (1.23%) (1.7%)
------------------------------------ ----------------------------------
<CAPTION>
----------------- -------------------------------
December 31,
1999 $ Change % Change
----------------- -------------------------------
<S> <C> <C> <C>
FINANCIAL DATA:
Total Balance Sheet Assets $ 567,373 $ 163,163 28.8%
Stockholders' Equity 39,145 4,476 11.4%
Total Loans 450,388 70,434 15.6%
Allowance for Loan Losses 5,336 888 16.6%
Nonperforming Loans 1,317 (207) (15.7%)
Other Real Estate Owned - - 0.0%
Nonperforming Assets 1,317 (207) (15.7%)
Deposits 420,535 154,990 36.9%
Borrowings 97,259 6,647 6.8%
Book Value Per Share $ 3.37 $ 0.33 9.9%
Market Price Per Share $ 8.50 $ 1.56 18.4%
Client Assets Under Management $ 3,660,000 $ 261,000 7.1%
FINANCIAL RATIOS:
Stockholders' Equity/Total Assets 6.90% (0.93%) (13.5%)
Nonperforming Loans/Total Loans 0.29% (0.08%) (27.1%)
Allowance for Loan Losses/Nonperforming Loans 405.16% 155.56% 38.4%
Nonperforming Assets/Total Assets 0.23% (0.08%) (34.5%)
----------------- -------------------------------
<CAPTION>
--------------------------------- -------------------------------
Six Months Ended
June 30, June 30,
OPERATING RESULTS: 2000 1999 $ Change % Change
--------------------------------- -------------------------------
Net Interest Income $ 11,107 $ 8,301 2,806 33.8%
Investment Management Fees 11,593 8,589 3,004 35.0%
Financial Planning Fees 1,638 1,396 242 17.3%
Equity in Earnings of Partnerships (241) 90 (331) (367.8%)
Gain on Sale of Assets 10 129 (119) (92.2%)
Other Fees 395 420 (25) (6.0%)
--------------------------------- -------------------------------
Total Revenue 24,502 18,925 5,577 29.5%
Loan Loss Provision 800 424 376 88.7%
Operating Expense 17,952 13,899 4,053 29.2%
--------------------------------- -------------------------------
Income Before Tax 5,750 4,602 1,148 24.9%
Income Tax Expense 1,782 1,462 320 21.9%
--------------------------------- -------------------------------
Income before cumulative effect of a change
in accounting principle 3,968 3,140 828 26.4%
Cumulative effect of a change in
accounting principle - 125 (125) (100.0%)
--------------------------------- -------------------------------
Net Income $ 3,968 $ 3,015 $ 953 31.6%
================================= ===============================
PER SHARE DATA:
Basic Earnings Per Share:
Income before cumulative effect of a change
in accounting principle $ 0.34 $ 0.27 $ 0.07 25.0%
Cumulative effect of a change in accounting
principle $ 0.00 $ 0.01 ($0.01) (100.0%)
--------------------------------- -------------------------------
Net Income $ 0.34 $ 0.26 $ 0.08 30.2%
================================= ===============================
Diluted Earnings Per Share:
Income before cumulative effect of a change
in accounting principle $ 0.33 $ 0.26 $ 0.07 26.5%
Cumulative effect of a change in accounting
principle $ 0.00 $ 0.01 ($0.01) (100.0%)
--------------------------------- -------------------------------
Net Income $ 0.33 $ 0.25 $ 0.08 31.8%
================================= ===============================
Average Common Shares Outstanding 11,696,838 11,568,670 128,168 1.1%
================================= ===============================
Average Diluted Shares Outstanding 12,089,100 11,889,953 199,147 1.7%
================================= ===============================
OPERATING RATIOS:
Return on Average Equity 19.41% 17.51% 1.90% 10.9%
Return on Average Assets 1.24% 1.25% (0.01%) (0.8%)
Net Interest Margin 3.76% 3.68% 0.08% 2.2%
Total Fees and Other Income/Total Revenue 54.67% 56.14% (1.47%) (2.6%)
Efficiency Ratio 73.27% 73.44% (0.18%) (0.2%)
--------------------------------- -------------------------------
</TABLE>
<PAGE>
BOSTON PRIVATE FINANCIAL HOLDINGS, INC.
SELECTED FINANCIAL DATA
<TABLE>
<CAPTION>
------------------------------------ ----------------------------------
Three Months Ended
June 30, June 30,
2000 1999 $ Change % Change
------------------------------------ ----------------------------------
<S> <C> <C> <C> <C>
AVERAGE BALANCE SHEET:
ASSETS:
Interest Bearing Cash $ 3,774 $ 3,949 ($175) (4.4%)
Federal Funds Sold 41,946 7,967 33,979 426.5%
U.S. Treasuries and Agencies 49,929 24,607 25,322 102.9%
Municipal Securities 44,358 35,538 8,820 24.8%
Mortgage-Backed Securities 4,194 7,201 (3,007) (41.8%)
FHLB Stock 4,830 4,756 74 1.6%
Commercial Loans 213,448 171,628 41,820 24.4%
Residential Loans 254,641 190,796 63,845 33.5%
Home Equity and Other Loans 23,897 22,527 1,370 6.1%
------------------------------------ ----------------------------------
Total Earning Assets 641,017 468,969 172,048 36.7%
Allowance for Loan Losses (5,864) (4,686) (1,178) 25.1%
Nonearning Assets 42,817 27,861 14,956 53.7%
------------------------------------ ----------------------------------
TOTAL ASSETS $ 677,970 $ 492,144 $ 185,826 37.8%
==================================== ==================================
LIABILITIES AND STOCKHOLDERS' EQUITY:
Savings Accounts $ 4,636 $ 14,899 ($10,263) (68.9%)
NOW Accounts 51,716 35,839 15,877 44.3%
Money Market Accounts 297,720 182,650 115,070 63.0%
Certificates of Deposit 93,086 86,635 6,451 7.4%
------------------------------------ ----------------------------------
Total Interest-Bearing Deposits 447,158 320,023 127,135 39.7%
Federal Funds Purchased - 2,667 (2,667) (100.0%)
Repurchase Agreements 30,200 10,160 20,040 197.2%
FHLB Borrowings 74,257 76,490 (2,233) (2.9%)
------------------------------------ ----------------------------------
Total Interest-Bearing Liabilities 551,615 409,340 142,275 34.8%
Noninterest-Bearing Deposits 77,415 42,560 34,855 81.9%
Other Liabilities 7,247 6,324 923 14.6%
------------------------------------ ----------------------------------
Total Liabilities 636,277 458,224 178,053 38.9%
Stockholders' Equity 41,693 33,920 7,773 22.9%
------------------------------------ ----------------------------------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 677,970 $ 492,144 $ 185,826 37.8%
==================================== ==================================
<CAPTION>
--------------------------------- -------------------------------
Six Months Ended
June 30, June 30,
2000 1999 $ Change % Change
--------------------------------- -------------------------------
<S> <C> <C> <C> <C>
AVERAGE BALANCE SHEET:
ASSETS:
Interest Bearing Cash $ 3,273 $ 3,171 $ 102 3.2%
Federal Funds Sold 36,027 10,000 26,027 260.3%
U.S. Treasuries and Agencies 43,583 25,653 17,930 69.9%
Municipal Securities 40,861 31,327 9,534 30.4%
Mortgage-Backed Securities 4,790 9,139 (4,349) (47.6%)
FHLB Stock 4,830 4,737 93 2.0%
Commercial Loans 199,074 168,683 30,391 18.0%
Residential Loans 247,509 183,829 63,680 34.6%
Home Equity and Other Loans 24,129 21,275 2,854 13.4%
--------------------------------- -------------------------------
Total Earning Assets 604,076 457,814 146,262 31.9%
Allowance for Loan Losses (5,660) (4,575) (1,085) 23.7%
Nonearning Assets 40,961 28,942 12,019 41.5%
--------------------------------- -------------------------------
TOTAL ASSETS $ 639,377 $ 482,181 $ 157,196 32.6%
================================= ===============================
LIABILITIES AND STOCKHOLDERS' EQUITY:
Savings Accounts $ 4,455 $ 11,300 ($6,845) (60.6%)
NOW Accounts 46,530 34,744 11,786 33.9%
Money Market Accounts 273,505 179,489 94,016 52.4%
Certificates of Deposit 92,589 86,976 5,613 6.5%
--------------------------------- -------------------------------
Total Interest-Bearing Deposits 417,079 312,509 104,570 33.5%
Federal Funds Purchased 275 2,799 (2,524) (90.2%)
Repurchase Agreements 26,884 8,887 17,997 202.5%
FHLB Borrowings 76,578 76,372 206 0.3%
--------------------------------- -------------------------------
Total Interest-Bearing Liabilities 520,816 400,567 120,249 30.0%
Noninterest-Bearing Deposits 69,514 40,397 29,117 72.1%
Other Liabilities 8,152 6,792 1,360 20.0%
--------------------------------- -------------------------------
Total Liabilities 598,482 447,756 150,726 33.7%
Stockholders' Equity 40,895 34,425 6,470 18.8%
--------------------------------- -------------------------------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 639,377 $ 482,181 $ 157,196 32.6%
================================= ===============================
</TABLE>
