Boston Private Financial (BPFH) 8-K Boston Private Financial Holdings Reports Second Quarter 2010 Results

Exhibit 99.1

Boston Private Financial Holdings Reports Second Quarter 2010 Results

Boston, MA – July 28, 2010 –Boston Private Financial Holdings, Inc. (NASDAQ: BPFH) (the “Company”) today reported second quarter 2010 GAAP net income attributable to the Company of $1.1 million, compared to $5.1 million in the first quarter of 2010. After accounting for non-cash equity adjustments and preferred dividends, the Company reported a second quarter 2010 GAAP loss per share of ($0.07) compared to earnings per share of $0.02 in the first quarter of 2010.

During the quarter, the Company redeemed the remaining $104 million of its TARP Capital Purchase Program funds, resulting in a one-time non-cash equity adjustment of $5.0 million, or $0.07 per share. Going forward the redemption will result in annualized savings of $5.2 million, or $0.08 per share, due to the elimination of the associated preferred dividends.

Chairman and Chief Executive Officer Timothy L. Vaill said, “During this quarter, we saw continued improvement in our core business, with increases in loans, higher net interest income, and higher fee income from our wealth advisory and investment management segments, as well as positive AUM net flows.

“Credit quality at our banks in Southern California and the Pacific Northwest continued to improve, and we saw another quarter of quality results from our Boston bank. However, as a result of recent adverse developments relating to several large loan relationships in our Northern California commercial real estate portfolio, we took proactive steps to add to our provision for loan losses. Net income decreased this quarter primarily due to the higher provision for loan losses.”

Key Financials (Note: All comparisons relate only to continuing operations except where noted).

• Revenue for the second quarter was $70.7 million, a decrease of $1.1 million, or 2%, from $71.7 million on a linked quarter basis. Revenues were up 7% from $66.2 million compared to the same period in 2009.

• Net Interest Income for the second quarter was $45 million, an increase of $0.7 million, or 2%, from $44.3 million on a linked quarter basis. Net Interest Income was up 15% from $39.3 million compared to the same period in 2009.

• Net Interest Margin for the second quarter was 3.29%, up 11 basis points from 3.18% on a linked quarter basis. Net Interest Margin was up 15 basis points from 3.14% compared to the same period in 2009.

• Total Fee Income for the second quarter was $25.8 million, a decrease of $0.2 million, or 1%, from $25.9 million on a linked quarter basis. Total Fee Income was up 7% from $24.2 million compared to the same period in 2009.

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• Operating Expenses for the second quarter were $56.7 million, an increase of $0.6 million, or 1%, on a linked quarter basis. Operating Expenses were down 2% from $57.7 million compared to the same period in 2009.

• Tangible Common Equity/Tangible Assets (“TCE/TA”) at the end of the second quarter was 7.11%, an increase of 79 basis points from 6.32% on a linked quarter basis. TCE/TA was up 167 basis points from 5.44% compared to the same period in 2009.

• Total Balance Sheet Assets as of the end of the second quarter were down $0.2 million, or 3% to $5.9 billion on a linked quarter basis. Total Balance Sheet Assets were down 19% from $7.3 billion compared to the same period in 2009, due primarily to divestitures in late 2009.

• Provision for Loan Losses for the second quarter was $15 million, an increase of $7.3 million, or 96%, from $7.6 million on a linked quarter basis. Provision for Loan Losses was up 71% from $8.7 million compared to the same period in 2009.

• Allowance for Loan Losses as a percentage of Total Loans at the end of the second quarter was 1.76%, an increase of 8 basis points, from 1.68% on a linked quarter basis. Allowance for Loan Losses as a percentage of Total Loans was up 8 basis points from 1.68% compared to the same period in 2009.

“This quarter, we completed a successful capital raise, adding more than $33 million in capital, and fully repaid our TARP funds to the U.S. Treasury, which will deliver substantial annualized savings in the future,” said David J. Kaye, Chief Financial Officer. “We improved upon our already-strong capital position and our TCE/TA ratio now stands at 7.11%. While our provision for loan losses is substantially higher this quarter as we address the issues in Northern California, we saw an improvement in credit quality at our other three banks, with lower classified and past due loans.”

Total Deposits decreased 2% in the second quarter to $4.4 billion compared to the first quarter of 2010, driven by a reduction in brokered certificates of deposit. Total Loans increased 3% in the second quarter to $4.5 billion compared to the end of the first quarter of 2010. Residential loans and commercial loans each grew 4% as of the end of the second quarter compared to the end of the first quarter of 2010.

Non-Performing Loans as a percentage of Total Loans were 2.23% as of the end of the second quarter, an increase of 21 basis points from 2.02% at the end of the first quarter of 2010. Net Charge-offs for the quarter were $9.2 million, which represented 0.20% (not annualized) of Total Loans, compared to $2.8 million of Net Charge-offs during the first quarter of 2010, or 0.06% (not annualized) of Total Loans. Past Due Loans (30-89 days) as a percentage of Total Loans decreased 28 basis points, on a linked quarter basis, to 0.17%.

Total Company Assets Under Management (“AUM”) decreased while fee income increased during the second quarter of 2010 as compared to the first quarter of 2010. Total AUM for the second quarter was $18.3 billion, a decrease of $885 million, or 5%, from $19.2 billion on a linked quarter basis. The Company experienced second quarter AUM net inflows of $10 million, as compared to $70 million of net inflows in the prior quarter.

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“Although the economy continues to present challenges, particularly in the Northern California commercial real estate portfolio, we are taking action to deal with these issues. However, we are seeing positive signs in our core business, and in these uncertain times we continue to offer the high-net-worth market a compelling value proposition of local, high-touch private banking, wealth advisory and investment management services,” Mr. Vaill said.

“As previously announced, Clay Deutsch will be taking over as Chief Executive Officer and President at Boston Private Financial Holdings at the end of the month” Vaill continued. “A McKinsey & Company veteran who started his career in banking three decades ago, Clay brings rich industry experience and expertise in wealth management and has helped many businesses develop and improve their growth strategies over the years. I want to wish Clay the best as the Company continues to deliver outstanding service and advice to clients in our markets around the country.”

Dividend Payments

Concurrent with the release of the second quarter 2010 earnings, the Board of Directors of the Company declared a cash dividend to shareholders of $0.01 per share. The record date for this dividend is August 11, 2010 and the payment date is August 25, 2010.

Non-GAAP Financial Measures

The Company uses certain non-GAAP financial measures, such as the TCE/TA ratio, to provide information for investors to effectively analyze financial trends of ongoing business activities, and to enhance comparability with peers across the financial sector. A detailed reconciliation table of the Company’s GAAP Total Equity to Total Assets ratio to the non-GAAP measure is attached.

Conference Call

Management will hold a conference call at 9 a.m. Eastern Time on Thursday, July 29, to discuss the financial results in more detail. To access the call:

Dial In #: 866-831-6267

International Dial In #: 617-213-8857

Passcode: 52395985

Replay Information:

Available from July 29 at 12 noon to August 5

Dial In #: 888-286-8010

International Dial In #: 617-801-6888

Passcode: 12287780

The call will be simultaneously webcast and may be accessed on www.bostonprivate.com.

Boston Private Financial Holdings, Inc.

Boston Private Financial Holdings, Inc. (NASDAQ: BPFH) is a national financial services organization comprised of affiliates located in key regions of the U.S. that offer private banking, wealth advisory and investment management services to the high net worth marketplace, selected businesses and institutions. The Company enters demographically attractive markets through selective acquisitions and then expands by way of organic growth. It employs a distinct business strategy, empowering its affiliates to serve their clients at the local level, while at the same time providing strategic oversight and access to resources, both financial and intellectual, to support management, compliance and risk management, legal, marketing, and operations.

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For more information about BPFH, visit the Company’s website at www.bostonprivate.com.

Note to Editors:

Boston Private Financial Holdings, Inc. is not to be confused with Boston Private Bank & Trust Company. Boston Private Bank & Trust Company is an independently operated and wholly-owned subsidiary of BPFH. The information reported in this press release is related to the performance and results of BPFH.

###

CONTACT:

Catharine Sheehan

Senior Vice President, Corporate Communications

Boston Private Financial Holdings, Inc.

(617) 912-3767

csheehan@bostonprivate.com

John Hartz

Sloane & Company

857-598-4779

jhartz@sloanepr.com

Statements in this press release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties. These statements, which are based on certain assumptions and describe our future plans, strategies and expectations, include, among others, statements regarding our strategy, effectiveness of our investment programs, and evaluations of future interest rate trends and liquidity, expectations as to growth in assets, deposits and results of operations, receipt of regulatory approval for pending acquisitions, success of acquisitions, future operations, market position, financial position, and prospects, plans and objectives of management. You should not place undue reliance on our forward-looking statements. You should exercise caution in interpreting and relying on forward-looking statements because they are subject to significant risks, uncertainties and other factors which are, in some cases, beyond the Company’s control. Forward-looking statements are based on the current assumptions and beliefs of management and are only expectations of future results. The Company’s actual results could differ materially from those projected in the forward-looking statements as a result of, among other factors, adverse conditions in the capital and debt markets and the impact of such conditions on the Company’s private banking, investment management and wealth advisory activities; changes in interest rates; competitive pressures from other financial institutions; the effects of a continuing deterioration in general economic conditions on a national basis or in the local markets in which the Company operates, including changes which adversely affect borrowers’ ability to service and repay our loans; changes in the value of the securities in our investment portfolio, changes in loan defaults and charge-off rates; the adequacy of loan loss reserves; reductions in deposit levels necessitating increased borrowing to fund loans and investments; increasing government regulation, such as the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010; the risk that

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goodwill and intangibles recorded in the Company’s financial statements will become impaired; and risks related to the identification and implementation of acquisitions; and changes in assumptions used in making such forward looking statements, as well as the other risks and uncertainties detailed in the Company’s Annual Report on Form 10-K, as updated by the Company’s Quarterly Reports on Form 10-Q; and other filings submitted to the Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.

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Boston Private Financial Holdings, Inc. Selected Financial Data (1) (In Thousands, except share data) (Unaudited)

(In thousands, except per share data)	June 30, 2010			June 30, 2009			March 31, 2010
FINANCIAL DATA:
Total Balance Sheet Assets (1)	$	5,867,709		$	7,265,738		$	6,034,392
Total Equity		540,666			648,035			610,180
Cash and Investment Securities		1,016,840			1,122,149			1,327,776
Goodwill		108,695			105,102			108,692
Intangible Assets, Net		38,756			46,056			40,096
Commercial Loans		2,327,240			2,273,464			2,230,079
Construction and Land Loans		259,829			424,564			295,831
Residential Mortgage Loans		1,601,714			1,323,683			1,541,629
Home Equity and Other Consumer Loans		297,418			208,506			291,440
Total Loans		4,486,201			4,230,217			4,358,979
Loans Held for Sale		28,449			35,371			9,592
Other Real Estate Owned (“OREO”)		12,113			13,147			16,238
Deposits		4,380,793			4,066,691			4,478,795
Borrowings		839,539			1,015,578			836,240
Book Value Per Common Share	$	6.45		$	6.78		$	6.54
Market Price Per Share	$	6.43		$	4.48		$	7.37
ASSETS UNDER MANAGEMENT AND ADVISORY:
Private Banking	$	3,405,000		$	3,241,000		$	3,582,000
Investment Managers		6,880,000			6,298,000			7,329,000
Wealth Advisory		7,210,000			6,400,000			7,445,000
Less: Inter-company Relationship		(17,000	)		(16,000	)		(18,000	)
Consolidated Affiliate Assets Under Management and Advisory	$	17,478,000		$	15,923,000		$	18,338,000
Unconsolidated		800,000			800,000			825,000
Total Unconsolidated Assets Under Management and Advisory	$	18,278,000		$	16,723,000		$	19,163,000
FINANCIAL RATIOS:
Total Equity/Total Assets		9.21	%		8.92	%		10.11	%
Tangible Common Equity/Tangible Assets (2)		7.11	%		5.44	%		6.32	%
Allowance for Loan Losses/Total Loans		1.76	%		1.68	%		1.68	%
Allowance for Loan Losses/Non-Accrual Loans		81	%		109	%		86	%

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Boston Private Financial Holdings, Inc. Selected Financial Data (1) (In Thousands, except share data) (Unaudited)

	Three Months Ended						Three Months Ended		Six Months Ended
	June 30, 2010			June 30, 2009			March 31, 2010		June 30, 2010			June 30 2009
OPERATING RESULTS:
Net Interest Income - on a Fully Taxable Equivalent Basis (FTE)	$	46,765		$	41,163		$	46,093	$	92,858		$	82,322
FTE Adjustment		1,748			1,861			1,782		3,531			3,611
Net Interest Income		45,017			39,302			44,311		89,327			78,711
Investment Management and Trust Fees:
Private Banking		5,766			5,039			5,716		11,482			9,942
Investment Managers		9,390			7,707			9,159		18,549			15,815
Total Investment Management Fees		15,156			12,746			14,875		30,031			25,757
Total Wealth Advisory Fees		9,304			8,496			9,257		18,562			16,768
Other Fees		1,297			2,914			1,816		3,111			4,132
Total Fees		25,757			24,156			25,948		51,704			46,657
Gain on sale of Investments, Net		987			951			1,432		2,419			4,394
(Loss)/Gain on Sale of Loans and OREO, Net		(1,111	)		1,834			48		(1,062	)		6,104
Gain on Retirement of Debt		—			—			—		—			407
Total Fees and Other Income		25,633			26,941			27,428		53,061			57,562
Total Revenue		70,650			66,243			71,739		142,388			136,273
Provision for Loan Losses		14,962			8,731			7,615		22,577			22,056
Salaries and Employee Benefits		34,653			32,403			33,849		68,501			62,405
Occupancy and Equipment		6,696			6,877			6,786		13,482			13,107
Professional Services		4,324			4,909			4,844		9,168			9,933
Marketing and Business Development		2,042			1,804			1,511		3,553			3,413
Contract Services and Processing		1,437			1,294			1,326		2,763			2,597
Amortization of Intangibles		1,339			2,279			1,329		2,669			3,916
FDIC Insurance		2,266			3,707			2,087		4,353			5,114
Other		3,908			4,383			4,300		8,209			8,798
Total Operating Expense		56,665			57,656			56,032		112,698			109,283
(Loss)/Income from Continuing Operations, before Tax		(977	)		(144	)		8,092		7,113			4,934
Income Tax (Benefit)/Expense		(1,202	)		(3	)		2,337		1,134			815
Net Income/(Loss) from Continuing Operations		225			(141	)		5,755		5,979			4,119
Discontinued Operations, Net of Tax (3)		1,509			(7,763	)		36		1,545			(8,392	)
Net Income/(Loss) before Attribution to Noncontrolling Interest		1,734			(7,904	)		5,791		7,524			(4,273	)
Less: Net Income Attributable to the Noncontrolling Interest		616			579			685		1,301			1,344
Net Income/(Loss) Attributable to the Company	$	1,118		$	(8,483	)	$	5,106	$	6,223		$	(5,617	)

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Boston Private Financial Holdings, Inc. Selected Financial Data (1) (In Thousands, except share data) (Unaudited)

	Three Months Ended						Three Months Ended			Six Months Ended
	June 30, 2010			June 30, 2009			March 31, 2010			June 30, 2010			June 30, 2009
PER SHARE DATA:
Calculation of Income/(Loss) for EPS:
Net Income/(Loss) from Continuing Operations	$	225		$	(141	)	$	5,755		$	5,979		$	4,119
Less: Net Income Attributable to Noncontrolling Interests		616			579			685			1,301			1,344
Net (Loss)/Income from Continuing Operations Attributable to the Company	$	(391	)	$	(720	)	$	5,070		$	4,678		$	2,775
Decrease/(Increase) in Noncontrolling Interests Redemption Value		190			(1,624	)		1,124			1,314			(2,771	)
Accretion of Series B Preferred Stock Beneficial Conversion Feature (4)		—			(4,879	)		—			—			(9,246	)
Accretion of Discount on Series C Preferred Stock (5)		(4,963	)		(242	)		(3,025	)		(7,988	)		(622	)
Dividends on Preferred Securities (4)(5)		(1,387	)		(1,356	)		(1,567	)		(2,954	)		(3,867	)
(Loss)/Income from Continuing OperationsAttributable to the Common Shareholders	$	(6,551	)	$	(8,821	)	$	1,602		$	(4,950	)	$	(13,731	)
Income/(Loss) from Discontinued Operations	$	1,509		$	(7,763	)	$	36		$	1,545		$	(8,392	)
Net (Loss)/Income Attributable to the Common Shareholder	$	(5,042	)	$	(16,584	)	$	1,638		$	(3,405	)	$	(22,123	)
Dividends Paid on Series B Preferred Stock for Diluted EPS	$	—		$	—			73		$	—		$	—
Calculation of Average Shares Outstanding:
Weighted Average Basic Shares		68,787			67,861			67,870			68,331			66,264
Weighted Average Diluted Shares (6)		68,787			67,861			76,474			68,331			66,264
(Loss)/Earnings per Share - Basic and Diluted
(Loss)/Earnings per Share from Continuing Operations	$	(0.09	)	$	(0.13	)	$	0.02		$	(0.07	)	$	(0.21	)
Income/(Loss) per Share from Discontinued Operations	$	0.02		$	(0.11	)	$	0.00		$	0.02		$	(0.12	)
(Loss)/Earnings per Share	$	(0.07	)	$	(0.24	)	$	0.02		$	(0.05	)	$	(0.33	)

	Three Months Ended						Three Months Ended			Six Months Ended June 30,
	June 30, 2010			June 30, 2009			March 31, 2010			2010			2009
OPERATING RATIOS & STATISTICS:
Return on Average Equity		0.75	%		(5.16	%)		3.30	%		2.05	%		(1.67	%)
Return on Average Assets		0.07	%		(0.47	%)		0.33	%		0.20	%		(0.16	%)
Net Interest Margin		3.29	%		3.14	%		3.18	%		3.24	%		3.18	%
Total Fees and Other Income/Total Revenue		36.28	%		40.67	%		38.23	%		37.27	%		42.24	%
Loans Charged-off, Net	$	9,151		$	5,320		$	2,797		$	11,948		$	15,144

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Boston Private Financial Holdings, Inc. Selected Financial Data (1) (In Thousands, except share data) (Unaudited)

	Average Balance Three Months Ended									Interest Income/Expense Three Months Ended						Average Yield/Rate Three Months Ended
AVERAGE BALANCE SHEET:	June 30,						March 31, 2010			June 30,				March 31, 2010		June 30,				March 31, 2010
	2010			2009						2010		2009				2010		2009
AVERAGE ASSETS
Earning Assets
Cash and Investments (7)	$	1,222,464		$	980,779		$	1,430,142		$	5,732	$	8,391	$	6,420	1.88	%	3.34	%	1.80	%
Loans (8)
Commercial and Construction (7)		2,605,125			2,704,214			2,592,771			35,414		38,596		37,587	5.41	%	5.70	%	5.76	%
Residential Mortgage		1,563,746			1,318,627			1,511,547			19,251		17,408		18,886	4.92	%	5.28	%	5.00	%
Home Equity and Other Consumer		277,473			205,738			220,852			3,842		2,257		2,459	5.52	%	4.36	%	4.48	%
Total Earning Assets		5,668,808			5,209,358			5,755,312			64,239		66,652		65,352	4.52	%	5.10	%	4.52	%
Allowance for Loan Losses		(74,923	)		(70,092	)		(69,760	)
Cash and due From Banks (Non-Interest Bearing)		13,385			25,972			12,338
Other Assets (12)		493,339			2,027,723			503,447
TOTAL AVERAGE ASSETS	$	6,100,609		$	7,192,961		$	6,201,337
AVERAGE LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest-Bearing Liabilities:
Deposits:
Savings and NOW	$	536,905		$	444,671		$	517,584		$	515	$	846	$	592	0.38	%	0.76	%	0.46	%
Money Market		1,653,006			1,113,927			1,646,046			3,762		5,026		3,921	0.91	%	1.81	%	0.97	%
Certificates of Deposits		1,340,825			1,517,340			1,419,511			5,104		9,313		6,116	1.53	%	2.46	%	1.75	%
Total Deposits		3,530,736			3,075,938			3,583,141			9,381		15,185		10,629	1.07	%	1.98	%	1.20	%
Junior Subordinated Debentures and Other Long-term Debt		193,645			241,734			193,645			2,504		3,130		2,490	5.17	%	5.18	%	5.14	%
FHLB Borrowings and Other		617,181			827,279			676,331			5,589		7,174		6,140	3.58	%	3.43	%	3.63	%
Total Interest-Bearing Liabilities		4,341,562			4,144,951			4,453,117			17,474		25,489		19,259	1.61	%	2.46	%	1.74	%
Non-interest Bearing Demand Deposits		1,037,556			842,279			1,010,766
Payables and Other Liabilities (12)		106,308			1,497,658			87,795
Total Liabilities		5,485,426			6,484,888			5,551,678
Redeemable Non-Controlling Interest		20,569			50,956			30,281
Stockholders’ Equity		594,614			657,117			619,378
TOTAL AVERAGE LIABILITIES & STOCKHOLDERS’ EQUITY	$	6,100,609		$	7,192,961		$	6,201,337
Net Interest Income										$	46,765	$	41,163	$	46,093
Interest Rate Spread																2.91	%	2.64	%	2.78	%
Net Interest Margin																3.29	%	3.14	%	3.18	%

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Boston Private Financial Holdings, Inc. Selected Financial Data (1) (In Thousands, except share data) (Unaudited)

	Average Balance Six Months Ended						Interest Income/Expense Six Months Ended				Average Yield/Rate Six Months Ended
AVERAGE BALANCE SHEET:	June 30,						June 30,				June 30,
	2010			2009			2010		2009		2010		2009
AVERAGE ASSETS
Earning Assets
Cash and Investments (7)	$	1,324,141		$	982,725		$	12,152	$	16,785	1.84	%	3.45	%
Loans (8)
Commercial and Construction (7)		2,570,211			2,685,806			73,002		77,671	5.54	%	5.79	%
Residential Mortgage		1,537,790			1,321,157			38,137		35,304	4.96	%	5.38	%
Home Equity and Other Consumer		278,119			201,533			6,302		4,448	5.54	%	4.41	%
Total Earning Assets		5,710,261			5,191,221			129,593		134,208	4.53	%	5.19	%
Allowance for Loan Losses		(72,356	)		(68,269	)
Cash and due From Banks (Non-Interest Bearing)		12,897			27,085
Other Assets (12)		516,463			2,054,975
TOTAL AVERAGE ASSETS	$	6,167,265		$	7,205,012
AVERAGE LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest-Bearing Liabilities:
Deposits:
Savings and NOW	$	526,967		$	434,096		$	1,108	$	1,689	0.42	%	0.78	%
Money Market		1,645,994			1,117,699			7,683		9,993	0.94	%	1.80	%
Certificates of Deposits		1,397,982			1,462,177			11,220		19,270	1.62	%	2.66	%
Total Deposits		3,570,943			3,013,972			20,011		30,952	1.13	%	2.07	%
Junior Subordinated Debentures and Other Long-term Debt		193,645			249,136			4,994		6,401	5.16	%	5.14	%
FHLB Borrowings and Other		646,593			890,416			11,730		14,533	3.61	%	3.28	%
Total Interest-Bearing Liabilities		4,411,181			4,153,524			36,735		51,886	1.67	%	2.51	%
Non-interest Bearing Demand Deposits		1,029,197			832,209
Payables and Other Liabilities (12)		99,151			1,493,868
Total Liabilities		5,539,529			6,479,601
Redeemable Non-Controlling Interest		21,195			51,712
Stockholders’ Equity		606,541			673,699
TOTAL AVERAGE LIABILITIES & STOCKHOLDERS’ EQUITY	$	6,167,265		$	7,205,012
Net Interest Income							$	92,858	$	82,322
Interest Rate Spread											2.86	%	2.68	%
Net Interest Margin											3.24	%	3.18	%

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Boston Private Financial Holdings, Inc. Selected Financial Data (1) (In Thousands, except share data) (Unaudited)

	June 30, 2010		June 30, 2009		March 31, 2010
PRIVATE BANKING LOAN DATA AND CREDIT QUALITY (9):
Commercial Loans:
New England	$	1,048,562	$	1,056,761	$	962,252
Northern California		946,171		864,660		938,492
Southern California		226,215		228,500		226,942
Pacific Northwest		106,607		124,261		102,809
Total Commercial Loans	$	2,327,555	$	2,274,182	$	2,230,495
Construction and Land Loans:
New England	$	105,642	$	134,907	$	112,099
Northern California		134,153		228,245		150,884
Southern California		3,068		11,812		7,177
Pacific Northwest		16,966		49,600		25,671
Total Construction and Land Loans	$	259,829	$	424,564	$	295,831
Residential Mortgage Loans:
New England	$	1,134,756	$	1,048,424	$	1,126,290
Northern California		262,762		207,573		228,143
Southern California		158,425		65,394		142,247
Pacific Northwest		45,771		2,292		44,949
Total Residential Mortgage Loans	$	1,601,714	$	1,323,683	$	1,541,629
Home Equity and Other Consumer Loans:
New England	$	197,410	$	93,901	$	182,604
Northern California		73,452		83,431		81,035
Southern California		18,078		22,539		18,802
Pacific Northwest		6,206		4,610		5,759
Total Home Equity and Other Consumer Loans	$	295,146	$	204,481	$	288,200
Total Private Banking Loans	$	4,484,244	$	4,226,910	$	4,356,155

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Boston Private Financial Holdings, Inc. Selected Financial Data (1) (In Thousands, except share data) (Unaudited)

	June 30, 2010			June 30, 2009		March 31, 2010
Allowance for Loan Losses:
New England	$	28,841		$	27,142	$	28,125
Northern California		29,720			17,275		23,986
Southern California		12,822			12,295		12,504
Pacific Northwest		7,690			14,290		8,647
Total Allowance for Loan Losses	$	79,073		$	71,002	$	73,262
Accruing Classified Loans (10):
New England	$	12,867		$	5,382	$	20,845
Northern California		24,723			16,879		14,234
Southern California		11,838			8,647		14,145
Pacific Northwest		11,732			30,585		13,537
Total Accruing Classified Loans	$	61,160		$	61,493	$	62,761
Non-performing Assets:
New England	$	15,688		$	11,056	$	11,224
Northern California		58,116			20,821		50,052
Southern California (11)		21,867			41,870		22,810
Pacific Northwest		16,708			22,866		20,231
Total Non-performing Assets	$	112,379		$	96,613	$	104,317
Loans 30-89 Days Past Due:
New England	$	4,474		$	6,490	$	14,939
Northern California		392			14,945		—
Southern California		2,628			5,189		4,645
Pacific Northwest		33			3,175		7
Total Loans 30-89 Days Past Due	$	7,527		$	29,799	$	19,591
Loans Charged-off/(Recovered), Net for the Three Months Ended:
New England	$	1,784		$	1,392	$	1,038
Northern California		7,216			1,216		1,789
Southern California		444			1,760		(855	)
Pacific Northwest		(293	)		952		825
Total Net Loans Charged-off	$	9,151		$	5,320	$	2,797

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Boston Private Financial Holdings, Inc. Selected Financial Data (1) (In Thousands, except share data) (Unaudited)

(1) Total Balance Sheet Assets at June 30, 2009 includes assets from discontinued operations of $1.6 billion.

(2) The Company calculates tangible assets by adjusting total assets to exclude goodwill and intangible assets. The Company calculates tangible common equity by adjusting total equity to exclude: the equity from the TARP funding, goodwill and intangible assets and includes the difference between redemption value and value per ARB 51 for redeemable non-controlling interests.

The Company uses certain non-GAAP financial measures, such as the Tangible Common Equity to Tangible Assets ratio, to provide information for investors to effectively analyze financial trends of ongoing business activities, and to enhance comparability with peers across the financial sector.

A reconciliation from the Company’s GAAP Total Equity to Total Assets ratio to the Non-GAAP Tangible Common Equity to Tangible Assets ratio is presented below:

	June 30 2010			June 30 2009			March 31, 2010
Total Balance Sheet Assets	$	5,867,709		$	7,265,738		$	6,034,392
LESS: Goodwill and intangible assets, Net		(147,451	)		(151,158	)		(148,788	)
Tangible Assets (non-GAAP)		5,720,258			7,114,580			5,885,604
Total Equity		540,666			648,035			610,180
LESS: Goodwill and intangible assets, Net		(147,451	)		(151,158	)		(148,788	)
TARP Funding		—			(154,000	)		(104,000	)
ADD: Difference between redemption value of non-controlling interests andvalue under ARB 51		13,659			44,371			14,490
Total adjusting items		(133,792	)		(260,787	)		(238,298	)
Tangible Common Equity (non-GAAP)		406,874			387,248			371,882
Total Equity/Total Assets		9.21	%		8.92	%		10.11	%
Tangible Common Equity/Tangible Assets (non-GAAP)		7.11	%		5.44	%		6.32	%

(3) In 2009 the Company completed the sale of its affiliates Boston Private Value Investors, Sand Hill Advisors, RINET, Gibraltar, and Westfield Capital Management.

Accordingly, prior period and current financial information related to the divested companies are included with discontinued operations. Prior period AUM, for comparative purposes, was adjusted to exclude the assets managed from the divested companies.

(4) The accretion of the beneficial conversion feature and dividends on the Series B Preferred stock that the Company issued during the third quarter of 2008 is accounted for similar to a preferred stock dividend and reduces the income attributable to common shareholders. The accretion of the beneficial conversion feature on the Series B Preferred stock was fully accreted as of December 31, 2009.

(5) The accretion of the discount and dividends on the Series C Preferred stock that the Company issued during the fourth quarter of 2008 is accounted for similar to a preferred stock dividend and reduces income attributable to common shareholders.

The accretion of the discount on the Series C Preferred stock was fully accreted as of June 30, 2010.

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Boston Private Financial Holdings, Inc. Selected Financial Data (1) (In Thousands, except share data) (Unaudited)

(6) The diluted EPS computation for the three and six months ended June 30, 2010 and 2009 and for the three months ended March 31, 2010 does not assume: exercise or contingent issuance of options or other dilutive securities; conversion of the convertible trust preferred securities or the Series B Preferred stock; nor the exercise of the warrants when the results are antidilutive. As a result of the antidilution, the potential common shares excluded from the diluted EPS computation are as follows:

	Three Months Ended			Six Months Ended
	June 30, 2010	June 30, 2009	March 31, 2010	June 30, 2010	June 30, 2009
Potential common shares from the convertible trust preferred securities	1,860,339	3,228,687	1,860,339	1,860,339	3,228,687
Potential common shares from the exercise or contingent issuance of the options or other dilutive securities	1,854,754	981,098	—	1,655,844	1,026,187
Potential common shares from the conversion of the Series B Preferred stock	7,261,091	7,261,091	—	7,261,091	7,261,091

If the effect of the conversion of the trust preferred securities would have been dilutive, interest expense, net of tax, related to the convertible trust preferred securities of $0.4 million, $0.7 million, and $0.4 million for the three months ended June 30, 2010, June 30, 2009 and March 31, 2010, respectively, and $0.9 million, and $1.5 million for the six months ended June 30, 2010 and 2009, respectively, would be added back to net loss for diluted EPS computations for the periods presented.

If the effect of the conversion of the Series B Preferred stock would have been dilutive, preferred dividends related to the Series B Preferred stock of $0.1 million for the three and six months ended June 30, 2010 and 2009 would have been added back to net loss for diluted EPS computations for the periods presented.

Options to purchase shares of common stock that were outstanding at June 30, 2010 were not included in the computation of diluted EPS or in the above anti-dilution table because the options’ exercise prices were greater than the average market price of the common shares during the period.

The shares excluded from the diluted EPS computation for the three months ended June 30, 2010, June 30, 2009 and March 31, 2010 amounted to 4.6 million, 5.2 million, and 4.1 million, respectively.

The shares excluded from the diluted EPS computation for the six months ended June 30, 2010, and 2009 amounted to 4.4 million, and 5.2 million, respectively.

In addition, a warrant to purchase approximately 2.9 million shares of common stock was outstanding at June 30, 2010, June 30, 2009 and March 31, 2010 but was not included in the computation of diluted EPS because the warrant’s price was greater than the average market price of the common shares during the period.

(7) Interest income on non-taxable investments and loans are presented on an FTE basis using the federal statutory rate. These adjustments were approximately $1.7 million for three months ended June 30, 2010, $1.8 million for the three months ended March 31, 2010, and $1.9 million for the three months ended June 30, 2009. The adjustments for the six months ended June 30, 2010 and 2009 were approximately $3.5 million and $3.6 million, respectively.

(8) Includes loans held for sale and non-accrual loans.

(9) The concentration of the Private Banking loan data and credit quality is based on the location of the lender.

(10) Accruing classified loans include loans that are classified as substandard but are still accruing interest income. The Banks may classify a loan as substandard where known information about possible credit problems of the related borrowers causes management to have doubts as to the ability of such borrowers to comply with the present repayment terms and which may result in disclosure of such loans as nonperforming at some time in the future.

(11) Includes the non-strategic loans held for sale of $3.0 million, $18.6 million, and $3.1 million, at June 30, 2010, June 30, 2009 and March 31, 2010, respectively.

(12) Total Other Average Assets for the three and six months ended June 30, 2009 includes average assets from discontinued operations of $1.6 billion. Total Average Payables and Other Liabilities for the three and six months ended June 30, 2009 includes average payables and other liabilities from discontinued operations of $1.5 million.

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