Boston Private Financial Holdings, Inc. Reports Second Quarter 2016 Results

By: Boston Private Financial Holdings, Inc. via Business Wire News Releases

July 20, 2016 at 16:05 PM EDT

Boston Private Financial Holdings, Inc. (NASDAQ: BPFH) (the “Company” or “BPFH”) today reported second quarter 2016 GAAP Net Income Attributable to the Company of $16.4 million, compared to $18.0 million for the first quarter of 2016. Second quarter 2016 diluted earnings per share were $0.18, compared to $0.21 in the first quarter of 2016 and $0.20 in the second quarter of 2015.

"We are pleased with the Company's overall performance amid a turbulent macro environment," said Clayton G. Deutsch, CEO. "Our Private Bank continues to deliver steady performance, while our fee-based businesses demonstrated resiliency confronting market pressure. We are excited about the geographic balance of new business as we maintain our focus on improving our client offering and increasing client introductions to position the Company favorably for the long-term."

Core Fees and Income

Core Fees and Income were flat linked quarter at $37.6 million. Year-over-year, Core Fees and Income are down 7% due primarily to lower levels of AUM offset by higher Other Banking Fee Income.

AUM increased to $27.3 billion in the second quarter, up 2% from $26.8 billion in the first quarter of 2016, reflecting positive market action partly offset by negative net flows. AUM decreased 8% year-over-year due to negative net flows partly offset by positive market action. The Company experienced negative net flows of $199 million during the second quarter, compared to negative $761 million and negative $193 million in the first quarter of 2016 and second quarter of 2015, respectively. Net flows attributable to Boston Private Wealth for the second quarter were negative $39 million compared to negative $422 million in the first quarter of 2016 and negative $243 million in the second quarter of 2015.

Net Interest Income

Net Interest Income for the second quarter was $49.2 million, down 1% from $49.9 million for the first quarter of 2016. On a year-over-year basis, Net Interest Income increased 9% from $45.1 million. The current quarter includes $0.6 million of interest recovered on previous nonaccrual loans while the first quarter of 2016 and second quarter of 2015 includes interest recoveries of $1.1 million and $0.1 million, respectively. Excluding interest recovered on previous nonaccrual loans, Net Interest Income on an FTE basis was flat, while it increased 7% year-over-year.

Net Interest Margin was 2.91% for the second quarter, down five basis points from 2.96% for the first quarter of 2016. Net Interest Margin was up one basis point from 2.90% for the second quarter of 2015. Excluding interest recovered on previous nonaccrual loans, Net Interest Margin was down 2 basis points linked quarter and year-over-year to 2.88%.

Total Operating Expenses

Total Operating Expenses for the second quarter of 2016 were $64.7 million, down 3% from $66.7 million for the first quarter of 2016. On a year-over-year basis, Total Operating Expenses increased 4% from $62.4 million, primarily due to higher occupancy and restructuring expense. Restructuring Expense in the second quarter of 2016 was $0.9 million while the first quarter of 2016 and the second quarter of 2015 included Restructuring Expense of $1.1 million and $0.2 million, respectively.

Provision and Asset Quality

The Company recorded a provision credit of $2.5 million for the second quarter of 2016, compared to a provision credit of $3.1 million for the first quarter of 2016 and no provision for the second quarter of 2015. The provision credit was driven by net recoveries of $1.9 million and a decline in Criticized Loans.

Criticized Loans decreased 10% linked quarter and year-over-year to $150.7 million. Nonaccrual Loans (“Nonaccruals”) decreased 21% to $19.2 million on a linked quarter basis. On a year-over-year basis, Nonaccruals decreased 36% from $29.9 million. As a percentage of Total Loans, Nonaccruals were 33 basis points at June 30, 2016, down 10 basis points from March 31, 2016, and down 21 basis points from June 30, 2015.

Additional credit metrics are listed below:


(In millions)	June 30, 2016			March 31, 2016			December 31, 2015			September 30, 2015			June 30, 2015
Total Criticized Loans	$	150.7		$	166.9		$	154.1		$	160.9		$	167.3
Total Loans 30-89 Days Past Due and Accruing (12)	$	7.6		$	8.3		$	13.1		$	7.0		$	4.3
Total Net Loans (Charged-off)/ Recovered	$	1.9		$	1.1		$	0.9		$	(1.6	)	$	1.0
Allowance for Loan Losses/ Total Loans	1.32		%	1.35		%	1.37		%	1.41		%	1.43		%

Capital Ratios

Capital ratios are listed below:


	June 30, 2016		March 31, 2016		December 31, 2015		September 30, 2015		June 30, 2015
BPFH Ratios:
Total Risk-Based Capital *	14.0	%	14.0	%	13.9	%	13.8	%	13.9	%
Tier I Risk-Based Capital *	12.7	%	12.7	%	12.6	%	12.6	%	12.7	%
Tier I Leverage Capital *	9.6	%	9.5	%	9.5	%	9.6	%	9.9	%
TCE/TA (4)	7.4	%	7.3	%	7.0	%	7.2	%	7.2	%
Tier I Common Equity/ Risk Weighted Assets *	10.0	%	9.9	%	9.8	%	9.7	%	9.8	%
*June 30, 2016 information is presented based on estimated data.

Dividend Payments

Concurrent with the release of second quarter 2016 earnings, the Board of Directors of the Company declared a cash dividend to common shareholders of $0.10 per share. The record date for this dividend is August 5, 2016, and the payment date is August 19, 2016.

The Board of Directors of the Company also declared a cash dividend to holders of the Non-Cumulative Perpetual Preferred Stock, Series D of $17.375 per share, which will result in a dividend of $0.434375 per depositary share. The record date for this dividend is August 15, 2016, and the payment date is September 15, 2016.

Non-GAAP Financial Measures

The Company uses certain non-GAAP financial measures, such as tangible book value per share; the TCE/TA ratio; return on average common equity; return on average tangible common equity; pre-tax, pre-provision earnings; total operating expense excluding restructuring; the efficiency ratio (FTE basis); and Net Interest Income and Net Interest Margin excluding interest recovered on previous nonaccrual loans; 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 to the non-GAAP measures is attached.

Conference Call

Management will hold a conference call at 8 a.m. Eastern Time on Thursday, July 21, 2016, to discuss the financial results, business highlights and outlook. To access the call:

Dial In #: (888) 317-6003

Elite Entry Number: 8680929

Replay Information:
Available from July 21, 2016 at 12 noon until July 28, 2016
Dial In #: (877) 344-7529
Conference Number: 10089337

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

Boston Private Financial Holdings, Inc.

Boston Private Financial Holdings, Inc. is a national financial services organization that owns Wealth Management and Private Banking affiliates with offices in Boston, New York, Los Angeles, San Francisco, San Jose, Florida, Wisconsin, Texas and the Washington D.C. area. The Company has a Private Banking balance sheet of greater than $7 billion, and manages approximately $27 billion of client assets.

The Company positions its affiliates to serve the high net worth marketplace with high quality products and services of unique appeal to private clients. The Company also provides strategic oversight and access to resources, both financial and intellectual, to support affiliate management, marketing, compliance and legal activities. (NASDAQ: BPFH)

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

Forward-Looking Statements

Certain statements in this press release that are not historical facts may constitute 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 include, among others, statements regarding our strategy, evaluations of future interest rate trends and liquidity, prospects for growth in assets, and prospects for overall results over the long term. 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 weakness in general economic conditions on a national basis or in the local markets in which the Company operates; changes in loan defaults and charge-off rates; changes in the value of securities and other assets, adequacy of loan loss reserves, or decreases in deposit levels necessitating increased borrowing to fund loans and investments; changes in government regulation; the risk that goodwill and intangibles recorded in the Company's financial statements will become impaired; the risk that the Company's deferred tax asset may not be realized; risks related to the identification and implementation of acquisitions, dispositions and restructurings; changes in assumptions used in making such forward-looking statements; and the other risks and uncertainties detailed in the Company's Annual Report on Form 10-K and updated by the Company's Quarterly Reports on Form 10-Q and other filings submitted to the Securities and Exchange Commission. Forward-looking statements speak only as of the date on which they are made. 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 statement is made.

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 a wholly-owned subsidiary of BPFH. The information reported in this press release is related to the performance and results of BPFH.


Boston Private Financial Holdings, Inc.
Selected Financial Data
(Unaudited)

(In thousands, except share and per share data)		6/30/2016		3/31/2016		12/31/2015			9/30/2015		6/30/2015
Assets:
Cash and cash equivalents	$	126,167	$	113,946	$	238,694		$	43,640	$	63,099
Investment securities available for sale		1,191,523		1,151,529		1,084,510			1,023,255		992,007
Investment securities held to maturity		105,297		111,337		116,352			121,679		128,258
Stock in Federal Home Loan Banks		44,374		34,202		35,181			35,518		35,668
Loans held for sale		4,677		5,383		8,072			7,685		19,512
Total loans		5,751,497		5,658,181		5,719,212			5,607,472		5,463,250
Less: Allowance for loan losses		75,753		76,427		78,500			79,246		78,251
Net loans		5,675,744		5,581,754		5,640,712			5,528,226		5,384,999
Other real estate owned (“OREO”)		2,042		98		776			776		929
Premises and equipment, net		31,752		31,575		31,036			30,841		31,337
Goodwill		152,082		152,082		152,082			152,082		152,082
Intangible assets, net		29,836		31,422		33,007			34,806		36,461
Fees receivable		11,129		11,041		11,258			11,308		12,486
Accrued interest receivable		18,061		17,590		17,950			17,039		16,383
Deferred income taxes, net		36,942		43,164		51,699			45,438		47,388
Other assets		149,975		128,540		121,179			128,235		125,330
Total assets	$	7,579,601	$	7,413,663	$	7,542,508		$	7,180,528	$	7,045,939
Liabilities:
Deposits	$	5,536,092	$	5,786,860	$	6,040,437		$	5,647,859	$	5,429,028
Deposits Held For Sale		110,558		—		—			—		—
Securities sold under agreements to repurchase		43,304		63,182		58,215			35,698		26,660
Federal funds purchased		180,000		40,000		—			60,000		100,000
Federal Home Loan Bank borrowings		678,012		523,952		461,324			461,899		541,529
Junior subordinated debentures		106,363		106,363		106,363			106,363		106,363
Other liabilities		135,289		114,223		111,468			109,695		95,074
Total liabilities		6,789,618		6,634,580		6,777,807			6,421,514		6,298,654
Redeemable Noncontrolling Interests		15,843		16,938		18,088			18,257		19,200
Shareholders’ Equity:
Preferred stock, $1.00 par value; authorized: 2,000,000 shares		47,753		47,753		47,753			47,753		47,753
Common stock, $1.00 par value; authorized: 170,000,000 shares		83,380		83,024		83,411			83,645		83,540
Additional paid-in capital		597,989		599,825		600,670			598,968		597,424
Retained earnings/ (accumulated deficit)		28,985		21,740		12,886			5,960		(1,003	)
Accumulated other comprehensive income/ (loss)		12,654		6,687		(1,500	)		1,287		(2,525	)
Total Company’s shareholders’ equity		770,761		759,029		743,220			737,613		725,189
Noncontrolling interests		3,379		3,116		3,393			3,144		2,896
Total shareholders’ equity		774,140		762,145		746,613			740,757		728,085
Total liabilities, redeemable noncontrolling interests and shareholders’ equity	$	7,579,601	$	7,413,663	$	7,542,508		$	7,180,528	$	7,045,939


Boston Private Financial Holdings, Inc.
Selected Financial Data
(Unaudited)
	Three Months Ended
(In thousands, except share and per share data)		6/30/2016			3/31/2016			12/31/2015			9/30/2015			6/30/2015
Interest and dividend income:
Loans	$	49,731		$	50,046		$	49,463		$	48,058		$	46,663
Taxable investment securities		1,507			1,594			1,239			1,094			1,075
Non-taxable investment securities		1,400			1,390			1,348			1,264			1,125
Mortgage-backed securities		2,982			3,065			2,863			2,681			2,775
Federal funds sold and other		405			507			449			425			282
Total interest and dividend income		56,025			56,602			55,362			53,522			51,920
Interest expense:
Deposits		4,075			4,182			4,281			4,007			3,822
Federal Home Loan Bank borrowings		2,139			1,953			1,960			2,051			2,017
Junior subordinated debentures		584			578			973			979			967
Repurchase agreements and other short-term borrowings		58			10			8			12			29
Total interest expense		6,856			6,723			7,222			7,049			6,835
Net interest income		49,169			49,879			48,140			46,473			45,085
Provision/ (credit) for loan losses		(2,535	)		(3,133	)		(1,655	)		2,600			—
Net interest income after provision/ (credit) for loan losses		51,704			53,012			49,795			43,873			45,085
Fees and other income:
Investment management fees		10,627			10,658			10,889			11,360			11,731
Wealth advisory fees		12,551			12,712			12,569			12,515			12,678
Wealth management and trust fees		11,208			10,916			11,782			12,424			13,545
Other banking fee income		2,982			3,233			1,719			2,780			2,031
Gain on sale of loans, net		197			209			178			364			362
Total core fees and income		37,565			37,728			37,137			39,443			40,347
Gain/ (loss) on sale of investments, net		245			1			215			5			8
Gain/ (loss) on OREO, net		—			280			—			35			—
Other		(1,015	)		13			366			(37	)		2,305
Total other income		(770	)		294			581			3			2,313
Operating expense:
Salaries and employee benefits		40,614			42,560			39,520			37,938			39,816
Occupancy and equipment		9,928			9,587			9,989			9,064			9,095
Professional services		3,015			3,515			3,778			2,848			3,214
Marketing and business development		1,811			2,170			4,001			2,008			1,706
Contract services and data processing		1,737			1,679			1,505			1,600			1,495
Amortization of intangibles		1,586			1,586			1,799			1,655			1,655
FDIC insurance		1,015			1,020			1,089			916			963
Restructuring		905			1,112			2,000			1,504			220
Other		4,120			3,480			3,726			4,396			4,254
Total operating expense		64,731			66,709			67,407			61,929			62,418
Income before income taxes		23,768			24,325			20,106			21,390			25,327
Income tax expense		7,626			7,438			5,638			8,182			8,000
Net income from continuing operations		16,142			16,887			14,468			13,208			17,327
Net income from discontinued operations (1)		1,245			2,065			1,455			1,316			1,546
Net income before attribution to noncontrolling interests		17,387			18,952			15,923			14,524			18,873
Less: Net income attributable to noncontrolling interests		989			911			921			994			1,263
Net income attributable to the Company	$	16,398		$	18,041		$	15,002		$	13,530		$	17,610


Boston Private Financial Holdings, Inc.
Selected Financial Data
(Unaudited)
	Six Months Ended
(In thousands, except share and per share data)		6/30/2016			6/30/2015
Interest and dividend income:
Loans	$	99,777		$	94,663
Taxable investment securities		3,101			2,070
Non-taxable investment securities		2,790			2,146
Mortgage-backed securities		6,047			5,389
Federal funds sold and other		912			516
Total interest and dividend income		112,627			104,784
Interest expense:
Deposits		8,257			7,714
Federal Home Loan Bank borrowings		4,092			3,948
Junior subordinated debentures		1,162			1,923
Repurchase agreements and other short-term borrowings		68			42
Total interest expense		13,579			13,627
Net interest income		99,048			91,157
Provision/ (credit) for loan losses		(5,668	)		(2,500	)
Net interest income after provision/ (credit) for loan losses		104,716			93,657
Fees and other income:
Investment management fees		21,285			23,445
Wealth advisory fees		25,263			25,353
Wealth management and trust fees		22,124			27,103
Other banking fee income		6,215			3,941
Gain on sale of loans, net		406			665
Total core fees and income		75,293			80,507
Gain/ (loss) on sale of investments, net		246			16
Gain/ (loss) on OREO, net		280			89
Other		(1,002	)		3,393
Total other income		(476	)		3,498
Operating expense:
Salaries and employee benefits		83,174			81,943
Occupancy and equipment		19,515			18,130
Professional services		6,530			6,235
Marketing and business development		3,981			3,054
Contract services and data processing		3,416			2,932
Amortization of intangibles		3,172			3,257
FDIC insurance		2,035			1,974
Restructuring		2,017			220
Other		7,600			8,100
Total operating expense		131,440			125,845
Income before income taxes		48,093			51,817
Income tax expense		15,064			16,572
Net income from continuing operations		33,029			35,245
Net income from discontinued operations (1)		3,310			3,640
Net income before attribution to noncontrolling interests		36,339			38,885
Less: Net income attributable to noncontrolling interests		1,900			2,492
Net income attributable to the Company	$	34,439		$	36,393


Boston Private Financial Holdings, Inc.
Selected Financial Data
(Unaudited)
(In thousands, except share and per share data)	Three Months Ended
PER SHARE DATA:		6/30/2016			3/31/2016			12/31/2015			9/30/2015		6/30/2015
Calculation of Income for EPS:
Net income attributable to the Company	$	16,398		$	18,041		$	15,002		$	13,530	$	17,610
Adjustments to Net Income Attributable to the Company to arrive at Net Income Attributable to Common Shareholders, treasury stock method (2)		(970	)		(289	)		(1,182	)		159		(1,026	)
Net Income Attributable to the Common Shareholders, treasury stock method	$	15,428		$	17,752		$	13,820		$	13,689	$	16,584

End of Period Common Shares Outstanding		83,380,426			83,023,755			83,410,961			83,645,364		83,539,785

Weighted Average Shares Outstanding:
Weighted average basic shares outstanding		81,236,809			81,301,499			81,134,931			81,103,938		80,778,562
Weighted average diluted shares outstanding (3)		83,519,939			83,279,866			83,579,050			83,438,413		83,260,383

Diluted Total Earnings per Share	$	0.18		$	0.21		$	0.17		$	0.16	$	0.20


(In thousands, except share and per share data)	Six Months Ended
PER SHARE DATA:	June 30, 2016			June 30, 2015
Calculation of Income for EPS:
Net income attributable to the Company	$	34,439		$	36,393
Adjustments to Net Income Attributable to the Company to arrive at Net Income Attributable to Common Shareholders, treasury stock method (2)		(1,259	)		(1,989	)
Net Income Attributable to the Common Shareholders, treasury stock method	$	33,180		$	34,404

Weighted Average Shares Outstanding:
Weighted average basic shares outstanding		81,269,154			80,647,191
Weighted average diluted shares outstanding (3)		83,391,057			83,111,228

Diluted Total Earnings per Share	$	0.40		$	0.41


Boston Private Financial Holdings, Inc.
Selected Financial Data
(Unaudited)
(In thousands, except per share data)
FINANCIAL DATA:		6/30/2016			3/31/2016			12/31/2015			9/30/2015			6/30/2015
Book Value Per Common Share	$	8.71		$	8.60		$	8.38		$	8.29		$	8.14
Tangible Book Value Per Share (4)	$	6.53		$	6.39		$	6.16		$	6.05		$	5.89
Market Price Per Share	$	11.78		$	11.45		$	11.34		$	11.70		$	13.41

ASSETS UNDER MANAGEMENT AND ADVISORY:
Wealth Management and Trust	$	7,313,000		$	7,137,000			7,976,000			8,060,000		$	9,028,000
Investment Managers		10,006,000			9,838,000			9,952,000			9,830,000			10,695,000
Wealth Advisory		9,974,000			9,857,000			9,688,000			9,537,000			9,941,000
Less: Inter-company Relationship		(17,000	)		(21,000	)		(21,000	)		(21,000	)		(22,000	)
Total Assets Under Management and Advisory	$	27,276,000		$	26,811,000			27,595,000			27,406,000		$	29,642,000

BPFH FINANCIAL RATIOS:
Total Equity/ Total Assets		10.21	%		10.28	%		9.90	%		10.32	%		10.33	%
Tangible Common Equity/ Tangible Assets (4)		7.36	%		7.34	%		6.98	%		7.24	%		7.17	%
Tier I Common Equity/ Risk Weighted Assets (4)		9.95	%		9.92	%		9.80	%		9.73	%		9.77	%
Allowance for Loan Losses/ Total Loans		1.32	%		1.35	%		1.37	%		1.41	%		1.43	%
Allowance for Loan Losses/ Nonaccrual Loans		395	%		314	%		295	%		258	%		262	%
Return on Average Assets - Three Months Ended (Annualized)		0.88	%		0.99	%		0.81	%		0.74	%		1.02	%
Return on Average Common Equity - Three Months Ended (Annualized) (5)		8.68	%		9.84	%		8.06	%		7.32	%		9.91	%
Return on Average Tangible Common Equity - Three Months Ended (Annualized) (5)		12.43	%		14.11	%		11.92	%		10.93	%		14.63	%
Efficiency Ratio - Three Months Ended (6)		70.41	%		70.87	%		71.59	%		66.18	%		66.99	%

DEPOSIT DETAIL:
Demand deposits (noninterest-bearing)	$	1,636,273		$	1,609,669		$	1,689,604		$	1,555,609		$	1,486,251
NOW		547,777			565,394			588,337			489,104			509,625
Savings		70,553			76,019			72,336			74,516			71,626
Money market		2,771,080			2,959,328			3,105,172			2,938,427			2,772,572
Certificates of deposit		510,409			576,450			584,988			590,203			588,954
Total Deposits	$	5,536,092		$	5,786,860		$	6,040,437		$	5,647,859		$	5,429,028


Boston Private Financial Holdings, Inc.
Selected Financial Data
(Unaudited)
	Average Balance						Interest Income/Expense						Average Yield/Rate
(In thousands)	Three Months Ended						Three Months Ended						Three Months Ended
AVERAGE BALANCE SHEET:		06/30/16		03/31/16		06/30/15		06/30/16		03/31/16		06/30/15	06/30/16	03/31/16	06/30/15
AVERAGE ASSETS
Interest-Earning Assets:
Cash and Investments:
Taxable investment securities	$	372,413	$	392,579	$	342,259	$	1,507	$	1,594	$	1,075	1.62 %	1.63 %	1.26 %
Non-taxable investment securities (8)		261,678		262,227		242,387		2,153		2,138		1,731	3.29 %	3.26 %	2.86 %
Mortgage-backed securities		588,419		564,826		538,688		2,982		3,065		2,775	2.03 %	2.17 %	2.06 %
Federal funds sold and other		124,790		185,253		90,616		405		507		282	1.29 %	1.08 %	1.23 %
Total Cash and Investments		1,347,300		1,404,885		1,213,950		7,047		7,304		5,863	2.09 %	2.08 %	1.93 %
Loans (9):
Commercial and Industrial (8)		1,084,821		1,065,614		988,536		10,813		10,920		10,438	3.94 %	4.05 %	4.18 %
Commercial Real Estate		1,910,968		1,859,557		1,740,606		19,559		19,797		18,323	4.05 %	4.21 %	4.16 %
Construction and Land		150,927		174,867		145,405		1,456		1,648		1,252	3.82 %	3.73 %	3.41 %
Residential		2,256,296		2,229,680		2,160,987		17,441		17,302		16,637	3.09 %	3.10 %	3.08 %
Home Equity		123,687		119,349		120,303		1,073		1,082		1,058	3.49 %	3.65 %	3.53 %
Other Consumer		177,805		157,508		169,726		1,073		965		980	2.43 %	2.47 %	2.32 %
Total Loans		5,704,504		5,606,575		5,325,563		51,415		51,714		48,688	3.58 %	3.66 %	3.63 %
Total Earning Assets		7,051,804		7,011,460		6,539,513		58,462		59,018		54,551	3.30 %	3.35 %	3.32 %
LESS: Allowance for Loan Losses		77,345		80,273		77,938
Cash and due From Banks (Non-Interest Bearing)		40,253		39,943		41,596
Other Assets		427,013		420,909		410,296
TOTAL AVERAGE ASSETS	$	7,441,725	$	7,392,039	$	6,913,467
AVERAGE LIABILITIES, RNCI, AND SHAREHOLDERS' EQUITY
Interest-Bearing Liabilities:
Interest-Bearing Deposits (9):
NOW	$	554,565	$	542,617	$	517,281	$	104	$	87	$	77	0.08 %	0.06 %	0.06 %
Savings		75,431		75,433		71,842		23		23		10	0.12 %	0.12 %	0.06 %
Money Market		2,897,151		3,055,242		2,754,817		2,836		2,902		2,551	0.39 %	0.38 %	0.37 %
Certificates of Deposit		559,271		578,310		597,617		1,112		1,170		1,184	0.80 %	0.81 %	0.79 %
Total Interest-Bearing Deposits (13)		4,086,418		4,251,602		3,941,557		4,075		4,182		3,822	0.40 %	0.40 %	0.39 %
Junior Subordinated Debentures		106,363		106,363		106,363		584		578		967	2.17 %	2.15 %	3.60 %
FHLB Borrowings and Other		719,655		524,892		576,403		2,197		1,963		2,046	1.21 %	1.48 %	1.40 %
Total Interest-Bearing Liabilities		4,912,436		4,882,857		4,624,323		6,856		6,723		6,835	0.56 %	0.55 %	0.59 %
Noninterest Bearing Demand Deposits (9) (13)		1,628,057		1,621,666		1,443,228
Payables and Other Liabilities		116,444		110,959		97,641
Total Average Liabilities		6,656,937		6,615,482		6,165,192
Redeemable Noncontrolling Interests		19,725		21,157		22,760
Average Shareholders' Equity		765,063		755,400		725,515
TOTAL AVERAGE LIABILITIES, RNCI, AND SHAREHOLDERS' EQUITY	$	7,441,725	$	7,392,039	$	6,913,467
Net Interest Income - on a Fully Taxable Equivalent Basis (FTE)							$	51,606	$	52,295	$	47,716
LESS: FTE Adjustment (8)								2,437		2,416		2,631
Net Interest Income (GAAP Basis)							$	49,169	$	49,879	$	45,085
Interest Rate Spread													2.74 %	2.80 %	2.73 %
Bank only Net Interest Margin													2.95 %	3.01 %	2.97 %
Net Interest Margin													2.91 %	2.96 %	2.90 %


Boston Private Financial Holdings, Inc.
Selected Financial Data
(Unaudited)
	Average Balance				Interest Income/Expense				Average Yield/Rate
(In thousands)	Six Months Ended				Six Months Ended				Six Months Ended
AVERAGE BALANCE SHEET:		6/30/2016		6/30/2015		6/30/2016		6/30/2015	6/30/2016	6/30/2015
AVERAGE ASSETS
Interest-Earning Assets:
Cash and Investments:
Taxable investment securities	$	373,486	$	331,565	$	3,101	$	2,070	1.66 %	1.25 %
Non-taxable investment securities (8)		261,952		236,352		4,291		3,301	3.28 %	2.79 %
Mortgage-backed securities		576,623		527,423		6,047		5,389	2.10 %	2.04 %
Federal funds sold and other		163,965		118,749		912		516	0.80 %	0.93 %
Total Cash and Investments		1,376,026		1,214,089		14,351		11,276	2.05 %	1.87 %
Loans (9):
Commercial and Industrial (8)		1,075,217		961,139		21,732		21,590	4.00 %	3.64 %
Commercial Real Estate		1,885,263		1,763,216		39,356		37,461	4.13 %	4.23 %
Construction and Land		162,897		138,882		3,104		2,328	3.77 %	3.33 %
Residential		2,242,988		2,150,813		34,743		33,292	3.10 %	3.10 %
Home Equity		121,518		118,001		2,155		2,071	3.57 %	3.54 %
Other Consumer		167,657		166,030		2,039		1,921	2.45 %	2.33 %
Total Loans		5,655,540		5,298,081		103,129		98,663	3.62 %	3.71 %
Total Earning Assets		7,031,566		6,512,170		117,480		109,939	3.31 %	3.37 %
LESS: Allowance for Loan Losses		78,809		77,491
Cash and due From Banks (Non-Interest Bearing)		40,136		39,894
Other Assets		424,402		411,724
TOTAL AVERAGE ASSETS	$	7,417,295	$	6,886,297
AVERAGE LIABILITIES, RNCI, AND SHAREHOLDERS' EQUITY
Interest-Bearing Liabilities:
Interest-Bearing Deposits (9):
NOW	$	548,591	$	522,414	$	191	$	154	0.07 %	0.06 %
Savings		75,432		71,966		47		37	0.12 %	0.10 %
Money Market		2,976,057		2,783,569		5,737		5,146	0.39 %	0.37 %
Certificates of Deposit		568,791		600,992		2,282		2,377	0.81 %	0.80 %
Total Interest-Bearing Deposits (13)		4,168,871		3,978,941		8,257		7,714	0.40 %	0.39 %
Junior Subordinated Debentures		106,363		106,363		1,162		1,923	2.16 %	3.60 %
FHLB Borrowings and Other		622,273		523,691		4,160		3,990	1.32 %	1.52 %
Total Interest-Bearing Liabilities		4,897,507		4,608,995		13,579		13,627	0.55 %	0.59 %
Noninterest Bearing Demand Deposits (9) (13)		1,624,928		1,434,460
Payables and Other Liabilities		113,747		100,529
Total Average Liabilities		6,636,182		6,143,984
Redeemable Noncontrolling Interests		20,497		22,205
Average Shareholders' Equity		760,616		720,108
TOTAL AVERAGE LIABILITIES, RNCI, AND SHAREHOLDERS' EQUITY	$	7,417,295	$	6,886,297
Net Interest Income - on a Fully Taxable Equivalent Basis (FTE)					$	103,901	$	96,312
LESS: FTE Adjustment (8)						4,853		5,155
Net Interest Income (GAAP Basis)					$	99,048	$	91,157
Interest Rate Spread									2.76 %	2.78 %
Bank only Net Interest Margin									2.98 %	3.02 %
Net Interest Margin									2.93 %	2.95 %


Boston Private Financial Holdings, Inc.
Selected Financial Data
(Unaudited)
(In thousands)
LOAN DATA (10):		6/30/2016		3/31/2016		12/31/2015		9/30/2015		6/30/2015
Commercial and Industrial Loans:
New England	$	814,839	$	849,615	$	894,277	$	827,301	$	793,897
San Francisco Bay Area		116,224		118,385		122,754		125,093		121,477
Southern California		111,854		101,971		94,524		84,428		87,038
Total Commercial and Industrial Loans	$	1,042,917	$	1,069,971	$	1,111,555	$	1,036,822	$	1,002,412
Commercial Real Estate Loans:
New England	$	797,450	$	816,324	$	799,109	$	766,253	$	728,820
San Francisco Bay Area		633,735		611,461		622,123		625,145		629,258
Southern California		546,127		497,734		492,902		512,250		469,337
Total Commercial Real Estate Loans	$	1,977,312	$	1,925,519	$	1,914,134	$	1,903,648	$	1,827,415
Construction and Land Loans:
New England	$	90,408	$	106,258	$	106,048	$	111,280	$	102,068
San Francisco Bay Area		36,808		35,281		52,876		35,627		45,221
Southern California		15,333		25,135		24,510		23,504		13,637
Total Construction and Land Loans	$	142,549	$	166,674	$	183,434	$	170,411	$	160,926
Residential Loans:
New England	$	1,385,102	$	1,361,547	$	1,368,192	$	1,356,057	$	1,316,705
San Francisco Bay Area		470,694		463,645		462,327		462,630		466,155
Southern California		424,320		391,683		399,021		393,199		392,648
Total Residential Loans	$	2,280,116	$	2,216,875	$	2,229,540	$	2,211,886	$	2,175,508
Home Equity Loans:
New England	$	91,728	$	84,693	$	83,712	$	81,796	$	85,057
San Francisco Bay Area		26,714		26,134		28,966		27,076		30,013
Southern California		7,044		7,980		7,150		5,915		5,395
Total Home Equity Loans	$	125,486	$	118,807	$	119,828	$	114,787	$	120,465
Other Consumer Loans:
New England	$	166,998	$	145,450	$	152,984	$	161,186	$	164,522
San Francisco Bay Area		8,299		8,347		4,530		5,782		6,793
Southern California		7,820		6,538		3,207		2,950		5,209
Total Other Consumer Loans	$	183,117	$	160,335	$	160,721	$	169,918	$	176,524
Total Loans:
New England	$	3,346,525	$	3,363,887	$	3,404,322	$	3,303,873	$	3,191,069
San Francisco Bay Area		1,292,474		1,263,253		1,293,576		1,281,353		1,298,917
Southern California		1,112,498		1,031,041		1,021,314		1,022,246		973,264
Total Loans	$	5,751,497	$	5,658,181	$	5,719,212	$	5,607,472	$	5,463,250


Boston Private Financial Holdings, Inc.
Selected Financial Data
(Unaudited)
(In thousands)
CREDIT QUALITY (10):		6/30/2016			3/31/2016			12/31/2015		9/30/2015			6/30/2015
Special Mention Loans:
New England	$	27,903		$	38,927		$	40,121	$	46,924		$	53,626
San Francisco Bay Area		24,381			23,288			15,764		11,087			17,150
Southern California		15,044			24,710			13,326		12,718			5,659
Total Special Mention Loans	$	67,328		$	86,925		$	69,211	$	70,729		$	76,435
Accruing Substandard Loans (11):
New England	$	17,447		$	19,157		$	22,026	$	16,996		$	16,666
San Francisco Bay Area		19,750			20,235			19,990		20,108			20,396
Southern California		27,027			16,299			16,398		22,405			24,554
Total Accruing Substandard Loans	$	64,224		$	55,691		$	58,414	$	59,509		$	61,616
Nonaccruing Loans:
New England	$	13,028		$	17,988		$	19,572	$	22,815		$	17,943
San Francisco Bay Area		4,196			4,369			4,977		5,096			9,163
Southern California		1,964			1,999			2,022		2,816			2,785
Total Nonaccruing Loans	$	19,188		$	24,356		$	26,571	$	30,727		$	29,891
Other Real Estate Owned:
New England	$	2,042		$	98		$	191	$	191		$	344
San Francisco Bay Area		—			—			585		585			585
Southern California		—			—			—		—			—
Total Other Real Estate Owned	$	2,042		$	98		$	776	$	776		$	929
Loans 30-89 Days Past Due and Accruing (12):
New England	$	5,213		$	4,723		$	7,118	$	6,733		$	3,873
San Francisco Bay Area		70			986			2,806		14			110
Southern California		2,343			2,598			3,170		227			356
Total Loans 30-89 Days Past Due and Accruing	$	7,626		$	8,307		$	13,094	$	6,974		$	4,339
Loans (Charged-off)/ Recovered, Net for the Three Months Ended:
New England	$	1,276		$	(2,146	)	$	120	$	(1,618	)	$	106
San Francisco Bay Area		537			3,454			703		(57	)		833
Southern California		48			(248	)		86		70			49
Total Net Loans (Charged-off)/ Recovered	$	1,861		$	1,060		$	909	$	(1,605	)	$	988
Loans (Charged-off)/ Recovered, Net for the Six Months Ended:
New England	$	(870	)									$	996
San Francisco Bay Area		3,991											3,571
Southern California		(200	)										346
Total Net Loans (Charged-off)/ Recovered	$	2,921										$	4,913


	Boston Private Financial Holdings, Inc.
	Selected Financial Data
	(Unaudited)

FOOTNOTES:
(1)	Net income from discontinued operations consists of contingent payments or expenses related to our divested affiliates, including Westfield Capital Management Company, LLC.

(2)	Adjustments to net income attributable to the Company to arrive at net income attributable to the common shareholders, as presented in these tables, include decrease/ (increase) in noncontrolling interests redemption value and dividends paid on preferred stock.

(3)	When the Company has positive net income from continuing operations attributable to the common shareholders, the Company adds additional shares to basic weighted average shares outstanding to arrive at diluted weighted average shares outstanding for the diluted earnings per share calculation. These additional shares reflect the assumed exercise, conversion, or contingent issuance of dilutive securities. If the additional shares would result in anti-dilution they would be excluded from the diluted earnings per share calculation. The potential dilutive shares relate to: unexercised stock options, unvested restricted stock, and unexercised stock warrants. See Part II. Item 8. "Financial Statements and Supplementary Data - Note 16: Earnings Per Share" in the Company's Annual Report on Form 10-K for the year ended December 31, 2015 for additional information.

(4)	The Company uses certain non-GAAP financial measures, such as: Tangible Book Value Per Share and the Tangible Common Equity ("TCE") to Tangible Assets ("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.

	Reconciliations from the Company's GAAP Total Equity to Total Assets ratio to the Non-GAAP TCE to TA ratio, and from GAAP Book Value to Non-GAAP Tangible Book Value are presented below:

	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 non-convertible Series D Preferred stock and exclude Goodwill and Intangible Assets, net.

		(In thousands, except per share data)		6/30/2016			3/31/2016			12/31/2015			9/30/2015			6/30/2015
		Total Balance Sheet Assets	$	7,579,601		$	7,413,663		$	7,542,508		$	7,180,528		$	7,045,939
		LESS: Goodwill and Intangible Assets, net		(181,918	)		(183,504	)		(185,089	)		(186,888	)		(188,543	)
		Tangible Assets (non-GAAP)	$	7,397,683		$	7,230,159		$	7,357,419		$	6,993,640		$	6,857,396
		Total Shareholders' Equity	$	774,140		$	762,145		$	746,613		$	740,757		$	728,085
		LESS: Series D Preferred Stock (non-convertible)		(47,753	)		(47,753	)		(47,753	)		(47,753	)		(47,753	)
		LESS: Goodwill and Intangible Assets, net		(181,918	)		(183,504	)		(185,089	)		(186,888	)		(188,543	)
		Total adjusting items		(229,671	)		(231,257	)		(232,842	)		(234,641	)		(236,296	)
		Tangible Common Equity (non-GAAP)	$	544,469		$	530,888		$	513,771		$	506,116		$	491,789
		Total Equity/Total Assets		10.21	%		10.28	%		9.90	%		10.32	%		10.33	%
		Tangible Common Equity/Tangible Assets (non-GAAP)		7.36	%		7.34	%		6.98	%		7.24	%		7.17	%

		Total Risk Weighted Assets *	$	5,464,531		$	5,412,514		$	5,449,239		$	5,397,148		$	5,278,052
		Tier I Common Equity *	$	543,802		$	536,925		$	534,241		$	525,004		$	515,546
		Tier I Common Equity/ Risk Weighted Assets		9.95	%		9.92	%		9.80	%		9.73	%		9.77	%

		End of Period Shares Outstanding		83,380,426			83,023,755			83,410,961			83,645,364			83,539,785

		Book Value Per Common Share	$	8.71		$	8.60		$	8.38		$	8.29		$	8.14
		Tangible Book Value Per Share (non-GAAP)	$	6.53		$	6.39		$	6.16		$	6.05		$	5.89
		* Risk Weighted Assets and Tier I Common Equity for June 30, 2016 are presented based on estimated data.

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

	Reconciliations from the Company's GAAP Return on Average Equity ratio to the Non-GAAP Return on Average Common Equity ratio, and the Non-GAAP Return on Average Tangible Common Equity ratio are presented below:

	The Company annualizes income data based on the number of days in the period presented and a 365 day year. The Company calculates Average Common Equity by adjusting Average Equity to exclude Average Preferred Equity. The Company calculates Average Tangible Common Equity by adjusting Average Equity to exclude Average Goodwill and Intangible Assets, net and Average Preferred Equity.
			Three Months Ended
		(In thousands)		6/30/2016			3/31/2016			12/31/2015			9/30/2015			6/30/2015
		Total average shareholders' equity	$	765,063		$	755,400		$	743,150		$	733,882		$	725,515
		LESS: Average Series D preferred stock (non-convertible)		(47,753	)		(47,753	)		(47,753	)		(47,753	)		(47,753	)
		Average common equity (non-GAAP)		717,310			707,647			695,397			686,129			677,762
		LESS: Average goodwill and intangible assets, net		(182,787	)		(184,415	)		(185,983	)		(187,728	)		(189,420	)
		Average Tangible Common Equity (non-GAAP)	$	534,523		$	523,232		$	509,414		$	498,401		$	488,342

		Net income attributable to the Company	$	16,398		$	18,041		$	15,002		$	13,530		$	17,610
		LESS: Dividends on Series D preferred stock		(869	)		(869	)		(869	)		(869	)		(869	)
		Common net income (non-GAAP)		15,529			17,172			14,133			12,661			16,741
		ADD: Amortization of intangibles, net of tax (35%)		1,031			1,031			1,169			1,076			1,076
		Tangible common net income (non-GAAP)	$	16,560		$	18,203		$	15,302		$	13,737		$	17,817

		Return on Average Equity - (Annualized)		8.60	%		9.69	%		8.01	%		7.31	%		9.74	%
		Return on Average Common Equity - (Annualized) (non-GAAP)		8.68	%		9.84	%		8.06	%		7.32	%		9.91	%
		Return on Average Tangible Common Equity - (Annualized) (non-GAAP)		12.43	%		14.11	%		11.92	%		10.93	%		14.63	%

			Six months ended
		(In thousands)		6/30/2016			6/30/2015
		Total average shareholders' equity	$	760,616		$	720,108
		LESS: Average Series D preferred stock (non-convertible)		(47,753	)		(47,753	)
		Average common equity (non-GAAP)		712,863			672,355
		LESS: Average goodwill and intangible assets, net		(183,601	)		(190,233	)
		Average Tangible Common Equity (non-GAAP)	$	529,262		$	482,122

		Net income attributable to the Company	$	34,439		$	36,393
		LESS: Dividends on Series D preferred stock		(1,738	)		(1,738	)
		Common net income (non-GAAP)		32,701			34,655
		ADD: Amortization of intangibles, net of tax (35%)		2,062			2,117
		Tangible common net income (non-GAAP)	$	34,763		$	36,772

		Return on Average Equity - (Annualized)		9.13	%		10.19	%
		Return on Average Common Equity - (Annualized) (non-GAAP)		9.25	%		10.39	%
		Return on Average Tangible Common Equity - (Annualized) (non-GAAP)		13.25	%		15.38	%

(6)	The Company uses certain non-GAAP financial measures, such as: pre-tax, pre-provision earnings, total operating expenses excluding restructuring expense, and the efficiency 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.

	Reconciliations from the Company's GAAP income from continuing operations before income taxes to non-GAAP pre-tax, pre-provision earnings; from GAAP total operating expense to non-GAAP total operating expense excluding restructuring; and from GAAP efficiency ratio to Non-GAAP efficiency ratio (FTE basis), excluding restructuring, are presented below:
			Three Months Ended
		(In thousands)		6/30/2016			3/31/2016			12/31/2015			9/30/2015			6/30/2015
		Income before income taxes (GAAP)	$	23,768		$	24,325		$	20,106		$	21,390		$	25,327
		ADD BACK: Provision/ (credit) for loan losses		(2,535	)		(3,133	)		(1,655	)		2,600			—
		Pre-tax, pre-provision earnings (non-GAAP)	$	21,233		$	21,192		$	18,451		$	23,990		$	25,327

		Total operating expense (GAAP)	$	64,731		$	66,709		$	67,407		$	61,929		$	62,418
		Less: Amortization of intangibles		1,586			1,586			1,799			1,655			1,655
		Less: Restructuring		905			1,112			2,000			1,504			220
		Total operating expense (excluding amortization of intangibles and restructuring) (non-GAAP)	$	62,240		$	64,011		$	63,608		$	58,770		$	60,543
		Total operating expense (excluding restructuring) (non-GAAP)		63,826			65,597			65,407			60,425			62,198

		Net interest income	$	49,169		$	49,879		$	48,140		$	46,473		$	45,085
		Total core fees and income		37,565			37,728			37,137			39,443			40,347
		Total other income		(770	)		294			581			3			2,313
		FTE income		2,437			2,416			2,997			2,883			2,631
		Total revenue (FTE basis)	$	88,401		$	90,317		$	88,855		$	88,802		$	90,376
		Efficiency Ratio, before deduction of intangible amortization (GAAP)		75.30	%		75.89	%		78.51	%		72.08	%		71.14	%
		Efficiency Ratio, FTE Basis excluding restructuring (non-GAAP)		70.41	%		70.87	%		71.59	%		66.18	%		66.99	%

			Six months ended
		(In thousands)		6/30/2016			6/30/2015
		Income before income taxes (GAAP)	$	48,093		$	51,817
		ADD BACK: Provision/ (credit) for loan losses		(5,668	)		(2,500	)
		Pre-tax, pre-provision earnings (non-GAAP)	$	42,425		$	49,317

		Total operating expense (GAAP)	$	131,440		$	125,845
		Less: Amortization of intangibles		3,172			3,257
		Less: Restructuring		2,017			220
		Total operating expense (excluding amortization of intangibles and restructuring) (non-GAAP)	$	126,251		$	122,368
		Total operating expense (excluding restructuring) (non-GAAP)		129,423			125,625

		Net interest income	$	99,048		$	91,157
		Total core fees and income		75,293			80,507
		Total other income		(476	)		3,498
		FTE income		4,853			5,155
		Total revenue (FTE basis)	$	178,718		$	180,317
		Efficiency Ratio, before deduction of intangible amortization (GAAP)		75.60	%		71.84	%
		Efficiency Ratio, FTE Basis excluding restructuring (non-GAAP)		70.64	%		67.86	%

(7)	The Company uses certain non-GAAP financial measures, such as: net interest income excluding interest recovered on previous nonaccrual loans and net interest margin excluding interest recovered on previous nonaccrual loans to provide information for investors to effectively analyze financial trends of ongoing business activities, and to enhance comparability with peers across the financial sector.

	Reconciliations from the Company's GAAP net interest income to non-GAAP net interest income excluding interest recovered on previous nonaccrual loans; and from GAAP net interest margin to non-GAAP net interest margin excluding interest recovered on previous nonaccrual loans, are presented below:
			Three Months Ended
		(In thousands)		6/30/2016			3/31/2016			12/31/2015			9/30/2015			6/30/2015
		Net interest income (GAAP basis)	$	49,169		$	49,879		$	48,140		$	46,473		$	45,085
		ADD: FTE income		2,437			2,416			2,997			2,883			2,631
		Net interest income, FTE basis		51,606			52,295			51,137			49,356			47,716
		LESS: Interest recovered on previously nonaccrual loans		565			1,089			255			298			69
		Net interest income, FTE basis, excluding interest recovered on previously nonaccrual loans (non-GAAP)		51,041			51,206			50,882			49,058			47,647

		Net Interest Margin (FTE basis)		2.91	%		2.96	%		2.88	%		2.84	%		2.90	%
		Net Interest Margin, FTE basis, excluding interest recovered on previously nonaccrual loans (non-GAAP)		2.88	%		2.90	%		2.86	%		2.82	%		2.90	%

(8)	Interest Income on Non-taxable Investments and Loans are presented on an FTE basis using the federal statutory rate of 35% for each period presented.

(9)	Average Loans includes Loans Held for Sale and Nonaccrual Loans. Average Deposits includes Deposits Held for Sale.

(10)	The concentration of the Private Banking loan data and credit quality is primarily based on the location of the lender's regional offices.

(11)	Accruing substandard loans include loans that are classified as substandard but are still accruing interest income. Boston Private Bank & Trust Company 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 nonaccrual at some time in the future.

(12)	In addition to loans 30-89 days past due and accruing, at June 30, 2016, the Company had one loan totaling $0.1 million that was more than 90 days past due but still on accrual status. This loan originated in the San Francisco Bay Area region. At March 31, 2016, December 31, 2015, and June 30, 2015, the Company had no loans outstanding more than 90 days past due but still on accrual status. At September 30, 2015, the Company had one loan totaling $0.1 million that was more than 90 days past due but still on accrual status. This loan originated in the New England region.

(13)	Average Total Deposits is the sum of Average Total Interest-Bearing Deposits and Average Noninterest Bearing Demand Deposits.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160720006028/en/

Contacts:

Adam Bromley
Vice President Corporate Finance and Director of Investor Relations
Boston Private Financial Holdings, Inc.
(617) 912-4386
abromley@bostonprivate.com