Boston Private Financial Holdings Reports Third Quarter 2009 Results.

BOSTON -- Boston Private Financial Holdings, Inc. (NASDAQ: BPFH) ("the Company") today reported third quarter 2009 GAAP net income from continuing operations of $390 thousand, up from a GAAP net loss from continuing operations of $141 thousand in the second quarter 2009. Including the loss from discontinued operations, the Company reported a third quarter 2009 GAAP net loss of $31.4 million. After accounting for losses attributed to the Company's discontinued operations and other adjustments, BPFH reported a third quarter 2009 GAAP loss per share of $0.60 per diluted share compared to a $0.24 loss per diluted share reported in the second quarter 2009.

In the third quarter, the Company announced a series of actions directed at strengthening its balance sheet, reducing risk and streamlining operations. On September 17th, the Company announced the divestiture of Gibraltar Private Bank for $93 million in cash, along with the sale of its wealth advisory affiliate RINET Company. In addition, on October 6th BPFH announced an agreement in which management at Westfield will complete the purchase of the firm in 2009, rather than in 2014, which will provide $59 million in initial proceeds and the retention of a 12.5% share in Westfield's revenues for eight years. The Westfield transaction is expected to close in the fourth quarter. As a result of these transactions, each of these affiliates is included in discontinued operations.

Chairman and CEO Timothy L. Vaill said, "We believe that we are a stronger business today thanks to the steps we took during the quarter to improve our balance sheet and establish the groundwork for sustainable long-term growth as the economy recovers. Our actions during the quarter added almost $100 million in cash to our balance sheet, strengthened our capital position, improved our overall credit metrics, reduced credit risk and improved liquidity. For the quarter, while we continued to build provision for loan losses, we were able to essentially break even. We remain very cautious about continuing economic trends, particularly in the Northern California market, and their impact on our portfolios."

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

* Net Interest Income for the third quarter was $39.7 million, an increase of $0.4 million, or 1%, from $39.3 million on a linked quarter basis. Net Interest Income was up 4% from $38.0 million compared to the same period in 2008.

* Revenue for the third quarter was $66.2 million, with substantially the same revenue on a linked quarter basis and for the same period in 2008.

* Expenses for the third quarter were $55.9 million, down $1.7 million or 3%, from $57.7 million on a linked quarter basis. Expenses were up 1% from $55.1 million compared to the same period in 2008.

* Tangible Common Equity/Tangible Assets ("TCE/TA") was 6.31%, up 87 basis points from 5.44% on a linked quarter basis. TCE/TA was up 57 basis points from 5.74% compared to the same period in 2008.

* Total Balance Sheet Assets for the third quarter were $5.9 billion, down $1.4 billion, or 19%, from $7.3 billion on a linked quarter basis. The decrease is primarily due to the discontinued operations of the divested companies. Total Balance Sheet Assets were down 17% from $7.0 billion compared to the same period in 2008.

* Provision for Loan Losses for the third quarter was $9.1 million, up $0.4 million or 4%, from $8.7 million on a linked quarter basis. Provision for Loan Losses was down 93% from $135.1 million compared to the same period in 2008.

* Allowance for Loan Losses as a percentage of Total Loans was essentially flat, at 1.69% from 1.68% on a linked quarter basis.

"As a result of affiliate divestitures during the third quarter, we significantly improved our credit position and increased our overall financial strength," said David J. Kaye, Chief Financial Officer. "Through the sale of Gibraltar, we reduced classified loans by $86 million, or 37%, and non-performing assets by $30 million, or 21%. Further, our strong capital base positions us well to deal with continued economic challenges and invest for future growth."

Total Deposits increased 2% during the third quarter to $4.1 billion and were up 18% on a year-over-year basis. Total Loans increased 2% during the third quarter to $4.3 billion and were up 7% on a year-over-year basis.

Non-Performing Loans as a percentage of Total Loans were 2.31%, up from 1.97% in the second quarter of 2009. Net Charge-offs for the third quarter were $7.1 million, which represented approximately 16 basis points of Total Loans, compared to $5.3 million of net charge-offs during the second quarter 2009, or 13 basis points of Total Loans. Past Due Loans (30-89 days) as a percentage of Total Loans declined 44 basis points on a linked quarter basis to 0.26%.

The Wealth Advisory and Investment Management businesses experienced an increase in assets under management (adjusted for affiliate sales) and an increase in fee income during the third quarter. Total Assets Under Management/Advisory ("AUM") increased 8%, or $1.4 billion, to $18.1 billion in the third quarter. Total AUM was down 6% on a year-over-year basis. Total fee income was up 7%, or $1.4 million, to $22.7 million in the third quarter 2009. Total fee income was down 13%, or $3.5 million on a year-over-year basis.

The Company experienced third quarter AUM outflows of $107 million, as compared to $14 million of inflows in the prior quarter. AUM flows were down $165 million compared to the same period in 2008.

Vaill concluded, "As we continue to manage proactively through a difficult market, the actions we have taken have put us in a stronger financial position and have created more flexibility to allocate resources going forward. We are focused on our core wealth management strategy, helping our affiliates increase current market share and expand their reach among new and existing customers who need reliable, personalized advice and strategic financial counsel as much as ever."

Dividend Payments Concurrent with the release of the third quarter 2009 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 November 2, 2009 and the payment date is November 16, 2009.

Non-GAAP Financial Measures The Company calculates its cash earnings by adjusting net income to exclude net amortization of intangibles, impairment, and the impact of certain non-cash share based compensation plans. 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 is attached.)

Conference Call Management will hold a conference call at 9:00 a.m. Eastern Time on Thursday, October 29, to discuss the financial results in more detail. To access the call:

Dial In #: [phone] International Dial In #: [phone] Passcode: 39344264

Replay Information: Available from 10/29/2009 to 11/5/2009 Dial In #: [phone] International Dial In #: [phone] Passcode: 90431608

Boston Private Financial Holdings, Inc. Boston Private Financial Holdings, Inc. (NASDAQ: BPFH) is a national financial services organization comprised of independently operated 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 run independently such that they can best 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, legal, marketing, and operations.

For more information about BPFH, visit the Company's web site 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 and does not reflect or impact the results of Boston Private Bank & Trust Company.

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 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 and asset investment advisory activities; changes in interest rates, competitive pressures from other financial institutions; a 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 loan defaults and charge-off rates; changes in the value of securities and other assets, adequacy of loan loss reserves, or deposit levels necessitating increased borrowing to fund loans and investments; the passing of adverse government regulation; the risk that goodwill and intangibles recorded in the Company's financial statements will become impaired; and risks related to the identification and implementation of acquisitions, 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.

Boston Private Financial Holdings, Inc. Selected Financial Data (1) (In Thousands, except share data) (Unaudited)
(In thousands, except per share data)				Sept 30,		Sept 30,		June 30,
FINANCIAL DATA:					2009				2008				2009
	Total Balance Sheet Assets				$	5,869,590			$	7,033,574			$	7,265,738
	Total Equity					619,176				506,357				648,035
	Investment Securities					691,805				822,071				765,517
	Goodwill					105,102				94,623				105,102
	Intangible Assets, Net					44,032				61,128				46,056
	Commercial Loans					2,333,851				2,138,675				2,273,465
	Construction and Land Loans					330,196				405,295				424,563
	Residential Mortgage Loans					1,471,811				1,315,925				1,323,683
	Home Equity and Other Consumer Loans					194,515				179,250				208,506
	Total Loans					4,330,373				4,039,145				4,230,217
	Loans Held for Sale					18,308				99,101				35,371
	OREO and Other Repossessed Assets					16,442				3,268				13,147
	Deposits					4,141,023				3,518,385				4,066,691
	Borrowings					956,158				1,513,910				1,015,578
	Book Value Per Common Share				$	9.03			$	8.84			$	9.56
	Market Price Per Share				$	6.47			$	8.74			$	4.48
ASSETS UNDER MANAGEMENT AND ADVISORY:
	Private Banking				$	3,421,000			$	3,512,000			$	3,241,000
	Investment Managers					6,972,000				8,001,000				6,298,000
	Wealth Advisory					6,928,000				7,005,000				6,400,000
	Less: Inter-company Relationship					(18,000	)			(303,000	)			(16,000	)
		Consolidated Affiliate Assets Under Management and Advisory				$	17,303,000			$	18,215,000			$	15,923,000
	Unconsolidated					815,000				1,000,000				800,000
		Total Unconsolidated Assets Under Management and Advisory				$	18,118,000			$	19,215,000			$	16,723,000
FINANCIAL RATIOS:
	Total Equity/Total Assets					10.55	%			7.20	%			8.92	%
	Tangible Common Equity/Tangible Assets (2)					6.31	%			5.74	%			5.44	%
	Allowance for Loan Losses/Total Loans					1.69	%			1.30	%			1.68	%
	Allowance for Loan Losses/Non-Accrual Loans					73	%			62	%			85	%
	Allowance for Loan Losses/Classified Loans					49	%			44	%			50	%

						Three Months Ended			Three Months Ended					Nine Months Ended
						Sept 30,		Sept 30,			June 30,					Sept 30		Sept 30
OPERATING RESULTS:					2009				2008					2009							2009				2008
	Net Interest Income - on a Fully Taxable Equivalent Basis (FTE)				$	41,448			$	39,800				$	41,163						$	123,770			$	117,913
	FTE Adjustment					1,731				1,787					1,861							5,342				5,527
	Net Interest Income					39,717				38,013					39,302							118,428				112,386
	Investment Management and Trust Fees:
	Private Banking					5,385				5,721					5,039							15,328				17,167
	Investment Managers					8,347				11,597					7,707							24,161				35,015
	Total Investment Management Fees					13,732				17,318					12,746							39,489				52,182
	Total Wealth Advisory Fees					8,927				8,853					8,496							25,696				26,253
	Other Fees					2,482				1,704					2,914							6,611				7,252
		Total Fees					25,141				27,875					24,156							71,796				85,687
	Investment Gains					1,064				531					951							5,459				1,326
	Gain/(Loss) on Sale of Loans and OREO, Net					318				(332	)				1,834							6,423				287
	Gain on Retirement of Debt					-				-					-							407				19,906
		Total Fees and Other Income					26,523				28,074					26,941							84,085				107,206
		Total Revenue					66,240				66,087					66,243							202,513				219,592
		Provision for Loan Losses					9,099				135,145					8,730							31,155				180,935
	Salaries and Employee Benefits					32,868				33,352					32,403							95,272				99,635
	Occupancy and Equipment					6,731				6,070					6,877							19,837				18,067
	Professional Services					4,429				5,010					4,909							14,362				13,947
	Marketing and Business Development					1,447				1,757					1,804							4,860				5,839
	Contract Services and Processing					1,323				1,246					1,294							3,920				3,814
	Amortization of Intangibles					2,024				2,085					2,279							5,940				6,343
	FDIC Insurance					2,619				865					3,707							7,734				2,471
	Other					4,495				4,745					4,384							13,294				11,838
		Total Operating Expense					55,936				55,130					57,657							165,219				161,954
		Operating Income/(Loss), before Tax					1,205				(124,188	)				(144	)						6,139				(123,297	)
	Warrant Expense					-				2,233					-							-				2,233
	Impairment, Net (9)					-				71,204					-							-				107,830
		Income/(Loss) from Continuing Operations, before Tax					1,205				(197,625	)				(144	)						6,139				(233,360	)
	Income Tax Expense/(Benefit)					815				(45,822	)				(3	)						1,629				(48,710	)
		Income/(Loss) from Continuing Operations, Net of Tax					390				(151,803	)				(141	)						4,510				(184,650	)
	Discontinued Operations, Net of Tax (1)					(30,614	)			(120,303	)				(7,763	)						(39,006	)			(175,164	)
		Net Loss					(30,224	)			(272,106	)				(7,904	)						(34,496	)			(359,814	)
	Less: Net Income/(Loss) Attributable to the Noncontrolling Interest					1,136				1,255					579							2,481				4,019
		Net Loss Attributable to the Company				$	(31,360	)		$	(273,361	)			$	(8,483	)					$	(36,977	)		$	(363,833	)

						Three Months Ended			Three Months Ended				Nine Months Ended
						Sept 30,		Sept 30,			June 30,				Sept 30		Sept 30
RECONCILIATION OF GAAP EARNINGS				2009		2008			2009				2009		2008
		TO CASH EARNINGS:
		Net Loss Attributable to the Company				$ (31,360)		$ (273,361)			$ (8,483)				$ (36,977)		$ (363,833)
		Cash Basis Loss (3)
		Book Amortization of Purchased Intangibles, Net				$ 1,469		$ 1,818			1,701				$ 4,452		$ 5,550
		Cash Benefit of Tax Deductions from Purchased Intangibles & Goodwill				1,074		1,169			1,066				3,209		3,449
		Stock options, ESPP, and Other Stock Compensation, Net				1,158		3,247			1,036				2,901		70,947
		Non-cash Valuation Adjustments, Net				-		196,449			-				1,357		233,075
		Dividends on Preferred Securities (4)(5)				(1,998)		-			(1,356)				(5,864)		-
		Total Cash Basis Adjustment				$ 1,703		$ 202,683			$ 2,447				$ 6,055		$ 313,021
		Cash Basis Loss				$ (29,657)		$ (70,678)			$ (6,036)				$ (30,922)		$ (50,812)
						Three Months Ended			Three Months Ended				Nine Months Ended
						Sept 30,		Sept 30,			June 30,				Sept 30		Sept 30
						2009		2008			2009				2009		2008
PER SHARE DATA:
Calculation of Income/(Loss) for EPS:
		Income/(Loss) from Continuing Operations, Net of Tax				$ 390		$ (151,803)			$ (141)				$ 4,510		$ (184,650)
		Less: Net Income/(Loss) Attributable to the Noncontrolling Interest, Net of Tax				1,136		1,255			579				2,481		4,019
		Income/(Loss) from Continuing Operations Attributable to the Company				$ (746)		$ (153,058)			$ (720)				$ 2,029		$ (188,669)
		Increase in Redemption Value, Net				(2,002)		-			(1,624)				(4,773)		-
		Accretion of Beneficial Conversion Feature (4)				(5,450)		(28,142)			(4,879)				(14,696)		(28,142)
		Accretion of Preferred Series C Discount (5)				(402)		-			(242)				(1,024)		-
		Dividends on Preferred Securities (4)(5)				(1,998)		(136)			(1,356)				(5,864)		(136)
		Loss from Continued Operations Available to the Common Shareholder				$ (10,598)		$ (181,336)			$ (8,821)				$ (24,328)		$ (216,947)
		Loss from Discontinued Operations Available to the Common Shareholder				$ (30,614)		$ (120,303)			$ (7,763)				$ (39,006)		$ (175,164)
		Net Loss Available to the Common Shareholder				$ (41,212)		$ (301,639)			$ (16,584)				$ (63,334)		$ (392,111)
Calculation of Average Shares Outstanding:
		Weighted Average Basic Shares (6)				68,552		51,459			67,861				67,034		42,649
		Weighted Average Diluted Shares for cash EPS				68,552		51,459			67,861				67,034		42,649
Loss per Share - Basic and Diluted:
		Loss per Share from Continued Operations				$ (0.15)		$ (3.52)			$ (0.13)				$ (0.37)		$ (5.08)
		Loss per Share from Discontinued Operations				$ (0.45)		$ (2.34)			$ (0.11)				$ (0.58)		$ (4.11)
		Net Loss per Share				$ (0.60)		$ (5.86)			$ (0.24)				$ (0.95)		$ (9.19)
RECONCILIATION OF GAAP LOSS PER SHARE TO CASH EARNINGS/(LOSS) PER SHARE:
		(on a Diluted Basis)
		Loss per Share (GAAP Basis)				$ (0.60)		$ (5.86)			$ (0.24)				$ (0.95)		$ (9.19)
		Cash Basis Adjustment (3)				0.17		4.49			0.15				0.49		8.00
		Cash Basis Loss Per Diluted Share				$ (0.43)		$ (1.37)			$ (0.09)				$ (0.46)		$ (1.19)
						Three Months Ended			Three Months Ended				Nine Months Ended
						Sept 30,		Sept 30,			June 30,				Sept 30,		Sept 30
						2009		2008			2009				2009		2008
OPERATING RATIOS & STATISTICS:
		Return on Average Equity				(18.78%)		(156.78%)			(4.81%)				(6.92%)		(70.24%)
		Return on Average Assets				(2.05%)		(14.95%)			(0.44%)				(0.80%)		(6.73%)
		Net Interest Margin				3.08%		3.14%			3.21%				3.18%		3.15%
		Total Fees and Other Income/Total Revenue				40.04%		42.48%			40.67%				41.52%		48.82%
		Loans Charged-off, Net				$ 7,091		$ 164,255			$ 5,320				$ 22,235		$ 188,437

AVERAGE BALANCE SHEET:				Three Months Ended				Three Months Ended
							Sept 30, 2009				Sept 30, 2008
							Average		Income/		Yield/				Average		Income/		Yield/
AVERAGE ASSETS				Balance		Expense		Rate				Balance		Expense		Rate
	Earning Assets
		Cash and Investments				$	1,125,566			$	7,061			2.51	%				$	887,941			$	8,856			3.97	%
		Loans
			Commercial and Construction					2,633,405				39,292			5.91	%					2,678,706				42,592			6.30	%
			Residential Mortgage					1,378,985				18,028			5.23	%					1,321,267				18,332			5.55	%
			Home Equity and Other Consumer					209,957				2,372			4.44	%					162,628				2,231			5.40	%
			Total Earning Assets					5,347,913				66,753			4.96	%					5,050,542				72,011			5.67	%
	Allowance for Loan Losses					(72,815	)									(77,507	)
	Cash and due From Banks (Non-Interest Bearing)					22,325										44,763
	Other Assets					598,463										2,261,073
TOTAL AVERAGE ASSETS				$	5,895,886									$	7,278,871
AVERAGE LIABILITIES AND STOCKHOLDERS' EQUITY
	Interest-Bearing Liabilities:
		Deposits:
			Savings and NOW				$	470,852			$	823			0.69	%				$	477,475			$	1,666			1.39	%
			Money Market					1,236,179				5,004			1.61	%					1,279,897				6,938			2.16	%
			Certificate of Deposit					1,589,505				9,222			2.30	%					1,230,484				10,471			3.39	%
		Total Deposits					3,296,536				15,049			1.81	%					2,987,856				19,075			2.54	%
		Junior Subordinated Debentures and Other Long-term Debt					239,028				3,072			5.14	%					331,645				4,049			4.88	%
		FHLB Borrowings and Other					768,985				7,184			3.69	%					1,135,778				9,087			3.13	%
			Total Interest-Bearing Liabilities					4,304,549				25,305			2.33	%					4,455,279				32,211			2.86	%
	Non-interest Bearing Demand Deposits					820,082										621,224
	Payables and Other Liabilities					75,987										1,457,015
	Total Liabilities					5,200,618										6,533,518
	Redeemable Non-Controlling Interest					51,388										51,133
	Stockholders' Equity					643,880										694,220
TOTAL AVERAGE LIABILITIES & STOCKHOLDERS' EQUITY				$	5,895,886									$	7,278,871
		Net Interest Income						$	41,448									$	39,800
		Net Interest Margin							3.08	%									3.14	%
AVERAGE BALANCE SHEET:				Nine Months Ended				Nine Months Ended
							Sept 30, 2009				Sept 30, 2008
							Average		Income/		Yield/				Average		Income/		Yield/
AVERAGE ASSETS				Balance		Expense		Rate				Balance		Expense		Rate
	Earning Assets
		Cash and Investments				$	1,030,896			$	23,846			3.14	%				$	852,513			$	26,943			4.20	%
		Loans
			Commercial and Construction					2,625,060				116,962			5.93	%					2,616,935				132,072			6.66	%
			Residential Mortgage					1,336,009				53,332			5.32	%					1,282,154				53,697			5.58	%
			Home Equity and Other Consumer					204,163				6,821			4.43	%					175,596				7,609			5.69	%
			Total Earning Assets					5,196,128				200,961			5.16	%					4,927,198				220,321			5.92	%
	Allowance for Loan Losses					(69,801	)									(71,322	)
	Cash and due From Banks (Non-Interest Bearing)					25,223										48,663
	Other Assets					615,293										2,222,793
TOTAL AVERAGE ASSETS				$	5,766,843									$	7,127,332
AVERAGE LIABILITIES AND STOCKHOLDERS' EQUITY
	Interest-Bearing Liabilities:
		Deposits:
			Savings and NOW				$	446,317			$	2,512			0.75	%				$	520,838			$	6,010			1.54	%
			Money Market					1,132,606				14,997			1.77	%					1,277,998				24,431			2.55	%
			Certificate of Deposit					1,505,086				28,492			2.53	%					1,134,136				32,927			3.88	%
		Total Deposits					3,084,009				46,001			1.99	%					2,932,972				63,368			2.89	%
		Junior Subordinated Debentures and Other Long-term Debt					250,037				9,473			5.05	%					416,366				14,205			4.55	%
		FHLB Borrowings and Other					850,072				21,717			3.40	%					989,980				24,835			3.30	%
			Total Interest-Bearing Liabilities					4,184,118				77,191			2.46	%					4,339,318				102,408			3.14	%
	Non-interest Bearing Demand Deposits					828,918										636,651
	Payables and Other Liabilities					50,749										1,422,560
	Total Liabilities					5,063,785										6,398,529
	Redeemable Non-Controlling Interest					38,650										45,737
	Stockholders' Equity					664,408										683,066
TOTAL AVERAGE LIABILITIES & STOCKHOLDERS' EQUITY				$	5,766,843									$	7,127,332
		Net Interest Income						$	123,770									$	117,913
		Net Interest Margin							3.18	%									3.15	%

PRIVATE BANKING LOAN DATA AND CREDIT QUALITY (7):			Sept 30,		Sept 30,				June 30,
						2009			2008						2009
	Commercial Loans:
		New England			$	1,077,277		$	946,263					$	1,056,761
		Northern California				908,056			801,437						864,660
		Southern California				233,899			236,377						228,500
		Pacific Northwest				115,287			155,927						124,261
	Total Commercial Loans			$	2,334,519		$	2,140,004					$	2,274,182
	Construction and Land Loans:
		New England			$	98,181		$	110,682					$	134,907
		Northern California				175,888			204,261						228,245
		Southern California				8,300			22,310						11,811
		Pacific Northwest				47,827			68,042						49,600
	Total Construction and Land Loans			$	330,196		$	405,295					$	424,563
	Residential Mortgage Loans:
		New England			$	1,116,088		$	1,077,917					$	1,048,424
		Northern California				213,370			203,644						207,573
		Southern California				120,175			9,126						65,394
		Pacific Northwest				22,178			25,237						2,292
	Total Residential Mortgage Loans			$	1,471,811		$	1,315,924					$	1,323,683
	Home Equity and Other Consumer Loans:
		New England			$	96,063		$	83,461					$	93,901
		Northern California				69,502			75,027						83,431
		Southern California				20,733			13,928						22,539
		Pacific Northwest				4,308			2,706						4,610
	Subtotal Home Equity and Other Consumer Loans			$	190,606		$	175,122					$	204,481
	Total Private Banking Loans			$	4,327,132		$	4,036,345					$	4,226,909
					Sept 30,		Sept 30,				June 30,
						2009			2008						2009
	Allowance for Loan Losses:
		New England			$	27,131		$	25,029					$	27,142
		Northern California				22,146			13,745						17,275
		Southern California				11,698			6,447						12,295
		Pacific Northwest				12,035			7,210						14,290
	Total Allowance for Loan Losses			$	73,010		$	52,431					$	71,002
	Classified Loans (8):
		New England			$	14,376		$	8,466					$	14,514
		Northern California				48,992			5,391						30,159
		Southern California (10)				39,580			86,295						48,367
		Pacific Northwest				44,755			18,722						49,287
	Total Classified Loans			$	147,703		$	118,874					$	142,327
	Non-performing Assets:
		New England			$	10,408		$	7,240					$	11,056
		Northern California				48,993			726						20,821
		Southern California (11)				33,837			72,448						41,870
		Pacific Northwest				23,043			6,954						22,866
	Total Non-performing Assets			$	116,281		$	87,368					$	96,613
	Loans 30-89 Days Past Due:
		New England			$	2,185		$	3,740					$	6,490
		Northern California				136			350						14,945
		Southern California				5,713			15,726						5,189
		Pacific Northwest				3,321			918						3,175
	Total Loans 30-89 Days Past Due			$	11,355		$	20,734					$	29,799
	Loans Charged-off, Net for the Three Months Ended:
		New England			$	546		$	448					$	1,392
		Northern California				129			(2	)					1,216
		Southern California				2,411			163,809						1,760
		Pacific Northwest				4,005			-						952
	Total Net Loans Charged-off, Net			$	7,091		$	164,255					$	5,320

	(1)		During the second quarter of 2009 the Company completed the sale of its affiliates Boston Private Value Investors and Sand Hill Advisors. In the third quarter of 2009 the Company completed the sale of its affiliates RINET and Gibraltar. Accordingly, prior period and current financial information related to the divested companies are included with discontinued operations.
			In addition, on October 6, 2009 the Company announced an agreement whereby the management of Westfield Capital Management ("WCM") will complete the purchase of the firm in 2009, instead of in 2014 as previously contemplated. As a result, prior period and current financial information related to WCM is included with discontinued operations.
			Prior period AUM, for comparative purposes, was adjusted to exclude the assets managed from the divested companies and WCM operations.
	(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 of $154 million, and 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:

							Sept 30,			Sept 30,			June 30,
								2009					2008					2009
Total Balance Sheet Assets			$	5,869,590				$	7,033,574				$	7,265,738
LESS: Goodwill and intangible assets, Net				(149,134	)				(155,751	)				(151,158	)
Tangible Assets (non-GAAP)				5,720,456					6,877,823					7,114,580
Total Equity				619,176					506,357					648,035
LESS:			Goodwill and intangible assets, Net				(149,134	)				(155,751	)				(151,158	)
				TARP Funding				(154,000	)				-					(154,000	)
ADD:			Difference between redemption value of non-controlling interests and value under ARB 51
							44,963					44,416					44,181
				Total adjusting items				(258,171	)				(111,335	)				(260,977	)
Tangible Common Equity (non-GAAP)				361,005					395,022					387,058
Total Equity/Total Assets				10.55	%				7.20	%				8.92	%
Tangible Common Equity/Tangible Assets (non-GAAP)				6.31	%				5.74	%				5.44	%

	(3)		The Company calculates its cash earnings/(loss) by adjusting net income/(loss) to exclude the amortization of the purchased intangibles (net of tax), the tax benefit on the portion of the purchase price allocated to goodwill, which is deductible over a 15 year life, non-cash valuation adjustments, and certain non-cash share based compensation plans (net of tax). The benefit on the portion of the purchase price allocated to goodwill deferred under GAAP accounting but are included in cash earnings since the tax savings (lower tax payment) will be retained unless the acquired company is sold. The computation of cash earnings per share includes the effect of dividends paid or accrued on Preferred Securities but excludes the accretion of the beneficial conversion feature, the change in redemption values related to the redeemable noncontrolling interests and the accretion of the Preferred Series C Discount. The Company uses certain non-GAAP financial measures, such as Cash Earnings/(Loss), to provide information for investors to effectively analyze financial trends of ongoing business activities.
	(4)		Accretion of the beneficial conversion feature and dividends on the preferred securities that the Company issued during the third quarter of 2008. In accordance with EITF 98-5 Accounting for Convertible Securities with Beneficial Conversion Features or Contingently Adjustable Conversions, the beneficial conversion feature is accounted for as a preferred stock dividend and reduces the income available to common shareholders.
	(5)		Accretion of the preferred discount and dividends on the preferred securities that the Company issued during the fourth quarter of 2008.
	(6)		The diluted EPS computation for the three and nine months ended September 30, 2008 and 2009 and for the three months ended June 30, 2009 does not assume: exercise or contingent issuance of options or other dilutive securities; conversion of the convertible trust preferred securities or the Class B preferred securities; nor the exercise of the warrants because the results would have been antidilutive. As a result of the antidilution, the potential common shares excluded from the diluted EPS computation are as follows:

			Three Months Ended					Nine Months Ended
			Sept 30, 2009			Sept 30, 2008				June 30, 2009					Sept 30, 2009			Sept 30, 2008
Potential common shares from the convertible trust preferred securities			3,228,687				3,228,687				3,228,687					3,228,687				3,201,079
Potential common shares from the exercise or contingent issuance of the options or other dilutive securities			463,721				932,774				981,098					699,035				876,680
Potential common shares from the conversion of the Class A preferred stock			-				4,346,022				-					-				1,464,594
Potential common shares from the conversion of the Class B preferred stock			7,261,091				4,972,269				7,261,091					7,261,091				1,675,636
Potential common shares from the exercise of the warrants			-				984,110				-					-				331,642

			In addition, 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 $0.7 million for the three month periods and $2.2 million for the nine month periods ended Sept 30, 2009 and 2008, respectively, would be added back to net income for diluted EPS computations for the periods presented.
	(7)		The concentration of the Private Banking loan data and credit quality is based on the location of the lender.
	(8)		Classified loans include loans classified as either substandard or doubtful.
	(9)		Gross impairment expense for the three and nine months ended Sept 30, 2008 was $84.7 million and $122.7 million, respectively.
	(10)		Includes the non-strategic loans held for sale of $12.8 million and $17.5 million at September 30, 2009 and June 30, 2009, respectively.
	(11)		Includes the non-strategic loans held for sale of $13.8 million and $18.6 million at September 30, 2009 and June 30, 2009, respectively.