Business Wire | Jan 21, 2021 04:45PM EST

Boston Private Reports Fourth Quarter and Full Year 2020 Results

Jan. 21, 2021

BOSTON--(BUSINESS WIRE)--Jan. 21, 2021--Boston Private Financial Holdings, Inc. (NASDAQ: BPFH) (the "Company" or "Boston Private") today reported fourth quarter 2020 Net income attributable to the Company of $25.0 million, compared to $22.7 million for the third quarter of 2020 and $21.2 million for the fourth quarter of 2019. Fourth quarter 2020 Diluted earnings per share were $0.30, compared to $0.28 in the third quarter of 2020 and $0.26 in the fourth quarter of 2019.

"Fourth quarter 2020 results were positively impacted by a release from our allowance for loan losses and Paycheck Protection Program revenue, while strong deposit growth enhanced on-balance sheet liquidity," said Anthony DeChellis, CEO of Boston Private. "I am extremely proud of our team's accomplishments throughout 2020. We continued to deliver exceptional client service in a challenging environment, while improving our client experience and executing on our strategic plan. We are excited about the prospects of our pending merger with SVB Financial Group. Together, we will be well positioned to grow and scale our business, while enhancing shareholder value."

Announced Merger

As previously announced, the Company entered into a definitive merger agreement with SVB Financial Group ("SVB") pursuant to which SVB will acquire Boston Private. The transaction has been unanimously approved by both companies' Boards of Directors and is expected to close in mid-2021, subject to the satisfaction of customary closing conditions, including receipt of customary regulatory approvals and approval by the shareholders of Boston Private.

Summary Financial Results

% Change

($ in millions, except for per share 4Q20 3Q20 4Q19 LQ Y/Ydata)

Net income - GAAP $25.0 $22.7 $21.2 10 % 18 %

Net income - Operating (Non-GAAP) 25.0 22.0 20.5 13 % 22 %

Diluted earnings per share - GAAP $0.30 $0.28 $0.26 7 % 15 %

Diluted earnings per share - Operating $0.30 $0.27 $0.25 11 % 20 %(Non-GAAP)



Non-GAAP Financial Measures:

Pre-tax, pre-provision income $28.1 $19.9 $24.5 41 % 15 %

Return on average common equity ("ROACE") 11.5 % 10.7 % 10.3 %

Return on average tangible common equity 12.7 % 11.9 % 11.5 % ("ROATCE")

The Company's financial results improved linked quarter and year-over-year primarily as a result of a Total provision credit of $5.4 million, Paycheck Protection Program ("PPP") fees, and higher swap fees in the fourth quarter of 2020.

Net Interest Income and Margin

% Change

($ in millions) 4Q20 3Q20 4Q19 LQ Y/Y

Net interest income $59.4 $57.8 $56.1 3 % 6 %

Net interest margin 2.52 % 2.61 % 2.70 %

Net interest income for the fourth quarter of 2020 was $59.4 million, a 3% increase linked quarter and a 6% increase year-over-year. The linked quarter and year-over-year increases were primarily driven by $3.8 million of PPP loan-related income, and prepayment penalties, partially offset by lower asset yields. The Small Business Administration ("SBA") forgave approximately $60 million of PPP loans in the fourth quarter of 2020, which drove the accelerated recognition of PPP income. Excluding the impact of PPP loans, prepayment penalties and interest recoveries, Net interest income was flat linked quarter.

Net interest margin decreased 9 basis points on a linked quarter basis to 2.52%. The decline was primarily driven by lower asset yields and excess cash balances, partially offset by lower funding costs.

Noninterest Income

% Change

($ in millions) 4Q20 3Q20 4Q19 LQ Y/Y

Wealth management and trust fees $19.0 $18.2 $18.7 4 % 2 %

Investment management fees 1.2 1.4 2.6 (16) % (54) %

Private banking fees ^1 5.0 2.3 3.5 nm 44 %

Total core fees and income $25.2 $22.0 $24.8 15 % 2 %

Total other income 1.4 1.1 2.0 33 % (29) %

Total noninterest income $26.7 $23.0 $26.8 16 % (1) %

nm = not meaningful

^1 Private banking fees includes Other banking fee income and Gain/(loss) onsale of loans, net

Total core fees and income for the fourth quarter of 2020 was $25.2 million, a 15% increase linked quarter. The linked quarter increase was primarily driven by higher swap fees and higher BOLI income in the fourth quarter of 2020.

Assets Under Management/Advisory

% Change

($ in millions) 4Q20 3Q20 4Q19 LQ Y/Y

Wealth Management and Trust $16,574 $15,581 $15,224 6 % 9 %

Other ^2 526 672 1,544 (22) % (66) %

Total assets under management/ $17,100 $16,253 $16,768 5 % 2 %advisory





Net flows

Wealth Management and Trust $(128) $(12) $(114)

Other^ 2 (268) (395) (95)

Total net flows $(396) $(407) $(209)

^2 Includes results from DGHM

Total AUM were $17.1 billion as of December 31, 2020, a 5% increase linked quarter. The linked quarter increase was primarily driven by the impact of favorable market action, partially offset by net outflows.

Total net flows were negative $396 million during the fourth quarter of 2020, driven by net flows of negative $268 million at DGHM and negative $128 million in the Wealth Management and Trust segment. Negative flows in the Wealth Management and Trust segment were driven by distributions to existing clients during the quarter. New business at Wealth Management & Trust remained strong at $297 million for the fourth quarter of 2020, compared to $299 million for the third quarter of 2020 and $1.1 billion for the year 2020.

Noninterest Expense

% Change

($ in millions) 4Q20 3Q20 4Q19 LQ Y/Y

Salaries and employee benefits $36.0 $34.7 $34.2 4 % 5 %

Occupancy and equipment 7.7 8.2 7.6 (5) % 2 %

Information systems 8.6 7.1 6.5 22 % 33 %

Professional services 2.7 4.0 3.9 (32) % (30) %

Marketing and business development 1.2 0.9 2.0 23 % (43) %

Amortization of intangibles 0.6 0.7 0.7 (21) % (16) %

FDIC insurance 0.9 1.0 - (9) % nm

Other 0.2 4.4 3.6 (94) % (93) %

Total noninterest expense $58.0 $60.9 $58.5 (5) % (1) %



Memo: Excluding Off-Balance Sheet Provision

Reserve for unfunded loan commitments $ $1.8 - nm nm (2.4)

Total noninterest expense, excludingReserve for unfunded loan commitments $60.4 $59.2 $58.5 2 % 3 %(non-GAAP)

Total noninterest expense for the fourth quarter of 2020 was $58.0 million, a 5% decrease linked quarter. The improvement linked quarter was driven primarily by a provision credit for unfunded loan commitments of $2.4 million in the fourth quarter of 2020, compared to a $1.8 million expense in the third quarter of 2020, each of which are recognized in Other expense.

Excluding the Reserve for unfunded loan commitments, Total noninterest expense (non-GAAP) for the fourth quarter of 2020 was $60.4 million, an increase of 2% linked quarter and an increase of 3% year-over-year. The linked quarter and year-over-year increases are driven primarily by higher Information systems expense from technology initiatives placed in service and higher compensation expense.

Income Tax Expense

The Company's effective tax rate for the fourth quarter of 2020 was 19.7%. The increase in the effective tax rate linked quarter reflects the impact of higher pre-tax income.

Loans - QTD Averages & Yields

% Change

($ in millions) 4Q20 3Q20 4Q19 LQ Y/Y

Commercial and industrial $1,036 $1,033 $1,142 - % (9) %

Paycheck Protection Program ("PPP") 349 373 - (6) % nm

Commercial real estate 2,711 2,653 2,562 2 % 6 %

Construction and land 172 218 217 (21) % (21) %

Residential 2,721 2,810 2,935 (3) % (7) %

Home equity 79 84 85 (6) % (6) %

Other consumer 121 112 132 8 % (8) %

Total loans $7,189 $7,283 $7,073 (1) % 2 %

Total loans, excluding PPP $6,840 $6,910 $7,073 (1) % (3) %(non-GAAP)



Total loan yields 3.31 % 3.23 % 3.83 %

Average total loans, excluding PPP (non-GAAP) in the fourth quarter of 2020 decreased 1% linked quarter and decreased 3% year-over-year.

* Commercial and industrial loans decreased 9% year-over-year driven by lower revolving line of credit usage * PPP loans decreased 6% linked quarter driven by the SBA's forgiveness of approximately 200 loans totaling $60 million in the fourth quarter of 2020 * Commercial real estate loans increased 2% linked quarter driven by the conversion of two loans from construction to permanent financing during the fourth quarter of 2020 * Residential mortgage loans decreased 3% linked quarter and 7% year-over-year driven by the sale of $72 million of loans late in the third quarter of 2020

Deposits - QTD Averages & Costs % Change($ in millions) 4Q20 3Q20 4Q19 LQ Y/Y

Non-interest bearing deposits $2,483 $2,321 $2,002 7 % 24 %

Interest bearing deposits 5,868 5,378 4,957 9 % 18 %

Total deposits $8,351 $7,700 $6,959 8 % 20 %

Cost of total deposits 0.26 % 0.33 % 0.86 %

Cost of total interest-bearing deposits 0.37 % 0.48 % 1.20 %

Average total deposits in the fourth quarter of 2020 increased 8% linked quarter and 20% year-over-year to $8.4 billion. The linked quarter and year-over-year increases were driven by a combination of existing and new client balances.

Provision and Asset Quality



($ in millions) 4Q20 3Q20 2Q20 1Q20 4Q19

Provision and Allowance

Provision/(credit) for loan losses $(3.0) $(4.6) $22.6 $17.0 $(3.7)

Reserve for unfunded loan (2.4) 1.8 2.8 1.8 -commitments

Total Provision/(credit) for credit $(5.4) $(2.8) $25.4 $18.8 $(3.7)losses

Allowance for loan losses as a % of 1.14 % 1.17 % 1.22 % 0.97 % 1.03 %Total loans



Asset Quality

Total net loans (charged-off)/ $(0.3) $(0.2) $(1.5) $(0.3) $0.3recovered

Total nonaccrual loans $23.9 $41.3 $25.6 $24.3 $16.1

Nonaccrual loans as a % of Total 0.34 % 0.57 % 0.35 % 0.35 % 0.23 %loans



Special mention loans (criticized $187.2 $199.5 $191.9 $92.6 $52.0loans)

Classified loans 130.7 123.1 114.2 112.3 74.0

Total criticized and classified $318.0 $322.6 $306.1 $204.9 $126.1loans

The Company recorded a Total provision credit for credit losses of $5.4 million during the fourth quarter of 2020. The provision release was primarily driven by an improved economic forecast related to the current expected credit losses methodology, partially offset by increased qualitative reserves for Commercial real estate. The Allowance for loan losses as a percentage of Total loans, excluding PPP loans (non-GAAP), was 1.19% in the fourth quarter of 2020, compared to 1.23% in the third quarter of 2020.

Total nonaccrual loans as of December 31, 2020 was $23.9 million, a decrease of $17.4 million, or 42%, linked quarter primarily driven by the payoff of a Commercial and industrial relationship in Northern California.

Total criticized and classified loans as of December 31, 2020 was $318.0 million, a decrease of $4.6 million, or 1%, linked quarter. In the fourth quarter of 2020, there were:

* $39 million of loan payoffs, paydowns and upgrades * $35 million of loan downgrades, including $31 million of Commercial real estate loans across 8 relationships, primarily with retail, office, and hospitality collateral

As of December 31, 2020:

* Residential loans on deferral totaled approximately $15 million, or 0.6% of total residential loans, compared to a peak of approximately $220 million in the second quarter of 2020 * Commercial and industrial loans on deferral totaled approximately $11 million, or 1.1% of total Commercial and industrial loans, compared to a peak of approximately $125 million in the second quarter of 2020 * The majority of Commercial real estate clients that qualified for and accepted the debt service reserve program remain in the program, representing a total loan balance of approximately $72 million, or 2.6% of total Commercial real estate loans

Capital



4Q20 3Q20 2Q20 1Q20 4Q19

Tangible common equity/ Tangible 8.0 % 8.3 % 8.3 % 8.8 % 8.6 %assets (non-GAAP)

Tangible book value per share $9.73 $9.48 $9.25 $9.31 $9.02(non-GAAP)



Regulatory Capital Ratios: ^3

Tier 1 common equity 11.5 % 11.3 % 11.1 % 11.2 % 11.4 %

Tier 1 risk-based capital 13.0 % 12.8 % 12.6 % 12.7 % 13.0 %

Total risk-based capital 14.3 % 14.1 % 13.9 % 13.8 % 14.1 %

Tier 1 leverage capital 8.9 % 9.2 % 9.2 % 9.7 % 9.8 %

^3 Current quarter information is presented based on estimated data.

The Company's tangible book value per share increased to $9.73 in the fourth quarter of 2020, a 8% increase year-over-year.

Dividend Payments

Concurrent with the release of fourth quarter 2020 earnings, the Board of Directors of the Company declared a cash dividend payable to common shareholders of $0.06 per share. The record date for this dividend is February 5, 2021, and the payment date is February 19, 2021.

Non-GAAP Financial Measures

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

These non-GAAP financial measures include: return on average common equity; return on average tangible common equity; return on average assets; tangible book value per share; pre-tax, pre-provision income; tangible common equity / tangible assets; the efficiency ratio excluding amortization of intangibles; net income/(loss) attributable to the Company excluding notable items; total noninterest expense, excluding reserve for unfunded loan commitments; net income/(loss) attributable to the common shareholders, treasury stock method, excluding notable items; diluted earnings/(loss) per share excluding notable items; average total loans, excluding PPP; and total loans, excluding PPP.

A detailed reconciliation table of the Company's GAAP to non-GAAP measures is included in the tables of this release and beginning on page 16 of the attached financial statements.

About Boston Private

Boston Private is a leading provider of integrated wealth management, trust and banking services to individuals, families, businesses and nonprofits.

For more than 30 years, Boston Private has delivered comprehensive advice coupled with deep technical expertise to help clients simplify their lives and achieve their goals. The firm offers the capabilities of a large institution with the superior service of a boutique firm to clients across the United States.

Boston Private is the corporate brand of Boston Private Financial Holdings, Inc. (NASDAQ: BPFH).

For more information, visit www.bostonprivate.com.

Forward-Looking StatementsCertain 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 interest rate trends and future liquidity; expectations as to changes in assets, deposits and results of operations; the impact of the COVID-19 pandemic; future operations; market position and 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, the negative impacts and disruptions of the COVID-19 pandemic and measures taken to contain its spread on our employees, customers, business operations, credit quality, financial position, liquidity and results of operations; the length and extent of the economic contraction as a result of the COVID-19 pandemic; continued deterioration in employment levels, general business and economic conditions on a national basis and in the local markets in which the Company operates; the failure to obtain our shareholder's approval to our proposed merger with SVB; the risk that a condition to closing of the proposed merger may not be satisfied; the risk that a regulatory approval that may be required for the proposed merger is not obtained or is obtained subject to conditions that are not anticipated; the effect of the announcement of the proposed merger on our ability to maintain relationships with our key partners, customers and employees, and on our operating results and business generally; changes in customer behavior; the possibility that future credits losses are higher than currently expected due to changes in economic assumptions, customer behavior or adverse economic developments; turbulence in the capital and debt markets; changes in interest rates; increases in loan defaults and charge-off rates; decreases in the value of securities and other assets; changes in loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and investments; competitive pressures from other financial institutions; operational risks including, but not limited to, cybersecurity incidents, fraud, natural disasters and future pandemics; changes in regulation; reputational risk relating to the Company's participation in the Paycheck Protection Program and other pandemic-related legislative and regulatory initiatives and programs; risks 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 statements are made.

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. Consolidated Balance Sheets

Unaudited ($ inthousands, except share and pershare data)

4Q20 3Q20 2Q20 1Q20 4Q19

ASSETS:

Cash and cash $ 1,055,588 $ 546,263 $ 179,027 $ 61,714 $ 292,479 equivalents

Investmentsecurities 1,243,693 1,011,327 1,002,970 993,166 978,284 available-for-sale

Investmentsecurities 35,223 38,600 42,495 45,395 48,212 held-to-maturity

Equity securities 41,452 32,818 24,492 23,080 18,810 at fair value

Stock in FederalHome Loan Bank and 28,663 36,618 42,407 45,273 39,078 Federal ReserveBank

Loans held for 17,421 15,074 9,786 7,671 7,386 sale

Loans 7,104,309 7,222,569 7,332,954 7,043,338 6,976,704

Less: Allowance 81,238 84,551 89,324 68,211 71,982 for loan losses

Loans, net ofAllowance for loan 7,023,071 7,138,018 7,243,630 6,975,127 6,904,722 losses

Premises and 44,087 42,907 43,805 43,544 44,527 equipment, net

Goodwill 57,607 57,607 57,607 57,607 57,607

Intangible assets, 9,056 8,898 8,935 9,637 10,352 net

Accrued interest 26,191 25,935 24,918 24,054 24,175 receivable

Deferred income 6,774 8,250 9,116 5,630 11,383 taxes, net

Right-of-use 97,859 94,879 94,143 98,896 102,075 assets

Other assets 362,048 374,111 375,575 355,532 291,411

TOTAL ASSETS $ 10,048,733 $ 9,431,305 $ 9,158,906 $ 8,746,326 $ 8,830,501



LIABILITIES:

Deposits $ 8,595,366 $ 7,827,719 $ 7,427,397 $ 6,835,572 $ 7,241,476

Securities soldunder agreements 53,472 42,544 46,623 45,319 53,398 to repurchase

Federal funds - - - 145,000 - purchased

Federal Home Loan 114,659 296,236 426,313 491,254 350,829 Bank borrowings

Juniorsubordinated 106,363 106,363 106,363 106,363 106,363 debentures

Lease liabilities 112,339 108,932 108,234 113,574 117,214

Other liabilities 198,526 203,342 218,771 180,452 140,820

TOTAL LIABILITIES 9,180,725 8,585,136 8,333,701 7,917,534 8,010,100



REDEEMABLENONCONTROLLING - - - - 1,383 INTERESTS ("RNCI")

SHAREHOLDERS' EQUITY:

Common stock,$1.00 par value; 82,334 82,255 82,058 81,800 83,266 authorized:170,000,000 shares

Additional paid-in 597,558 597,113 594,463 593,167 600,708 capital

Retained earnings 156,431 136,394 118,647 131,761 127,469

Accumulated othercomprehensive 31,685 30,407 30,037 22,064 7,575 income

TOTALSHAREHOLDERS' 868,008 846,169 825,205 828,792 819,018 EQUITY

TOTAL LIABILITIES,RNCI, AND $ 10,048,733 $ 9,431,305 $ 9,158,906 $ 8,746,326 $ 8,830,501 SHAREHOLDERS'EQUITY



BOSTON PRIVATE FINANCIAL HOLDINGS, INC.

Consolidated Income Statements

Unaudited ($ in thousands, except share and per share data)

4Q20

3Q20

2Q20

1Q20

4Q19

REVENUE:

Interest income

$

66,351

$

65,453

$

68,819

$

73,082

$

75,291

Interest expense

6,944

7,629

9,881

15,825

19,166

Net interest income

59,407

57,824

58,938

57,257

56,125

Provision/(credit) for loan losses 4

(2,999

)

(4,569

)

22,604

16,962

(3,668

)

Net interest income after Provision/(credit) for loan losses

62,406

62,393

36,334

40,295

59,793

Wealth management and trust fees 5

19,016

18,240

17,261

18,371

18,720

Investment management fees

1,173

1,393

1,770

1,925

2,554

Private banking fee income

4,304

1,320

2,395

2,490

2,924

Gain on sale of loans, net

718

1,006

204

100

557

Total core fees and income

25,211

21,959

21,630

22,886

24,755

Total other income

1,445

1,086

1,032

(1,365

)

2,038

TOTAL REVENUE 6

86,063

80,869

81,600

78,778

82,918

NONINTEREST EXPENSE:

Salaries and employee benefits

36,022

34,671

33,937

35,096

34,186

Occupancy and equipment

7,723

8,150

7,560

7,646

7,578

Information systems

8,633

7,096

7,113

6,725

6,476

Professional services

2,744

4,025

3,446

3,601

3,920

Marketing and business development

1,154

935

2,313

1,890

2,017

Amortization of intangibles

566

714

702

715

676

FDIC insurance

876

960

767

-

(19

)

Other 4

249

4,386

5,615

5,235

3,623

TOTAL NONINTEREST EXPENSE

57,967

60,937

61,453

60,908

58,457

INCOME/(LOSS) BEFORE INCOME TAXES

31,095

24,501

(2,457

)

908

28,129

Income tax expense

6,124

1,821

841

102

6,788

Net income/(loss) before attribution to noncontrolling interests

24,971

22,680

(3,298

)

806

21,341

Less: Net income attributable to noncontrolling interests

-

-

-

6

97

NET INCOME/(LOSS) ATTRIBUTABLE TO THE COMPANY

$

24,971

$

22,680

$

(3,298

)

$

800

$

21,244

Adjustments, treasury stock method 7

-

-

-

414

98

NET INCOME/(LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS

$

24,971

$

22,680

$

(3,298

)

$

1,214

$

21,342

COMMON SHARE DATA:

Weighted average basic shares outstanding

82,292,450

82,221,705

81,929,752

83,005,064

83,238,982

Weighted average diluted shares outstanding 8

82,764,339

82,362,338

81,929,752

83,318,041

83,637,786

Diluted earnings/(loss) per share

$

0.30

$

0.28

$

(0.04

)

$

0.01

$

0.26

4 Total Provision for credit losses includes the Provision/(credit) for loan losses and the Reserve for unfunded loan commitments within Other expense.

5 Wealth management and trust fees consists of revenue from Boston Private Wealth LLC ("BPW"), KLS Professional Advisors Group, LLC ("KLS"), and the trust operations of Boston Private Bank & Trust Company.

6 Total revenue is the sum of Net interest income, Total core fees and income, and Total other income.

7 Adjustments to Net income/(loss) attributable to the Company to arrive at Net income/(loss) attributable to common shareholders, treasury stock method, as presented in these tables, include decreases/(increases) in Noncontrolling interests redemption value, if any.

8 For a description of the Company's policies regarding Diluted earnings per share, please refer to 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, 2019.

BOSTON PRIVATEFINANCIAL HOLDINGS, INC.

Consolidated Income Statements

Unaudited ($ inthousands, except share and pershare data)

4Q20 3Q20 2Q20 1Q20 4Q19

REVENUE:

Interest income $ 66,351 $ 65,453 $ 68,819 $ 73,082 $ 75,291

Interest expense 6,944 7,629 9,881 15,825 19,166

Net interest 59,407 57,824 58,938 57,257 56,125 income

Provision/(credit) (2,999 ) (4,569 ) 22,604 16,962 (3,668 ) for loan losses ^4

Net interestincome after 62,406 62,393 36,334 40,295 59,793 Provision/(credit)for loan losses



Wealth management 19,016 18,240 17,261 18,371 18,720 and trust fees ^5

Investment 1,173 1,393 1,770 1,925 2,554 management fees

Private banking 4,304 1,320 2,395 2,490 2,924 fee income

Gain on sale of 718 1,006 204 100 557 loans, net

Total core fees 25,211 21,959 21,630 22,886 24,755 and income

Total other income 1,445 1,086 1,032 (1,365 ) 2,038

TOTAL REVENUE ^6 86,063 80,869 81,600 78,778 82,918



NONINTEREST EXPENSE:

Salaries and 36,022 34,671 33,937 35,096 34,186 employee benefits

Occupancy and 7,723 8,150 7,560 7,646 7,578 equipment

Information 8,633 7,096 7,113 6,725 6,476 systems

Professional 2,744 4,025 3,446 3,601 3,920 services

Marketing andbusiness 1,154 935 2,313 1,890 2,017 development

Amortization of 566 714 702 715 676 intangibles

FDIC insurance 876 960 767 - (19 )

Other ^4 249 4,386 5,615 5,235 3,623

TOTAL NONINTEREST 57,967 60,937 61,453 60,908 58,457 EXPENSE



INCOME/(LOSS)BEFORE INCOME 31,095 24,501 (2,457 ) 908 28,129 TAXES

Income tax expense 6,124 1,821 841 102 6,788

Net income/(loss)before attribution 24,971 22,680 (3,298 ) 806 21,341 to noncontrollinginterests

Less: Net incomeattributable to - - - 6 97 noncontrollinginterests

NET INCOME/(LOSS)ATTRIBUTABLE TO $ 24,971 $ 22,680 $ (3,298 ) $ 800 $ 21,244 THE COMPANY



Adjustments,treasury stock - - - 414 98 method ^7

NET INCOME/(LOSS)ATTRIBUTABLE TO $ 24,971 $ 22,680 $ (3,298 ) $ 1,214 $ 21,342 COMMONSHAREHOLDERS



COMMON SHARE DATA:

Weighted averagebasic shares 82,292,450 82,221,705 81,929,752 83,005,064 83,238,982 outstanding

Weighted averagediluted shares 82,764,339 82,362,338 81,929,752 83,318,041 83,637,786 outstanding ^8

Diluted earnings/ $ 0.30 $ 0.28 $ (0.04 ) $ 0.01 $ 0.26 (loss) per share



^4 Total Provision for credit losses includes the Provision/(credit) for loanlosses and the Reserve for unfunded loan commitments within Other expense.



^5 Wealth management and trust fees consists of revenue from Boston PrivateWealth LLC ("BPW"), KLS Professional Advisors Group, LLC ("KLS"), and the trustoperations of Boston Private Bank & Trust Company.



^6 Total revenue is the sum of Net interest income, Total core fees and income,and Total other income.



^7 Adjustments to Net income/(loss) attributable to the Company to arrive atNet income/(loss) attributable to common shareholders, treasury stock method,as presented in these tables, include decreases/(increases) in Noncontrollinginterests redemption value, if any.



^8 For a description of the Company's policies regarding Diluted earnings pershare, please refer to Part II. Item 8. "Financial Statements and SupplementaryData - Note 16: Earnings Per Share" in the Company's Annual Report on Form 10-Kfor the year ended December 31, 2019.

BOSTON PRIVATE FINANCIAL HOLDINGS, INC.

Consolidated Income Statements

Unaudited ($ in thousands, except share and per share data)

Year ended December 31,

2020

2019

REVENUE:

Interest income

$

273,705

$

308,447

Interest expense

40,279

80,371

Net interest income

233,426

228,076

Provision/(credit) for loan losses 4

31,998

(3,564

)

Net interest income after Provision/(credit) for loan losses

201,428

231,640

Wealth management and trust fees 5

72,888

75,757

Investment management fees

6,261

10,155

Private banking fee income

10,509

10,948

Gain on sale of loans, net

2,028

1,622

Total core fees and income

91,686

98,482

Total other income

2,198

3,065

TOTAL REVENUE 6

327,310

329,623

NONINTEREST EXPENSE:

Salaries and employee benefits

139,726

134,302

Occupancy and equipment

31,079

32,038

Information systems

29,567

22,642

Professional services

13,816

15,228

Marketing and business development

6,292

6,439

Amortization of intangibles

2,697

2,691

FDIC insurance

2,603

1,285

Restructuring

-

1,646

Other 4

15,485

13,935

TOTAL NONINTEREST EXPENSE

241,265

230,206

INCOME BEFORE INCOME TAXES

54,047

102,981

Income tax expense

8,888

22,591

Net income before attribution to noncontrolling interests

45,159

80,390

Less: Net income attributable to noncontrolling interests

6

362

NET INCOME ATTRIBUTABLE TO THE COMPANY

$

45,153

$

80,028

Adjustments, treasury stock method 7

414

1,143

NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS

$

45,567

$

81,171

COMMON SHARE DATA

Weighted average basic shares outstanding

82,359,528

83,430,740

Weighted average diluted shares outstanding 8

82,757,785

83,920,792

Diluted earnings per share

$

0.55

$

0.97

4 Total Provision for credit losses includes the Provision/(credit) for loan losses and the Reserve for unfunded loan commitments within Other expense.

5 Wealth management and trust fees consists of revenue from Boston Private Wealth LLC ("BPW"), KLS Professional Advisors Group, LLC ("KLS") through the effective date of its merger with BPW, and the trust operations of Boston Private Bank & Trust Company.

6 Total revenue is the sum of Net interest income, Total core fees and income, and Total other income.

7 Adjustments to Net income attributable to the Company to arrive at Net income attributable to common shareholders, treasury stock method, as presented in these tables, include decreases/(increases) in Noncontrolling interests redemption value, if any.

8 For a description of the Company's policies regarding Diluted earnings per share, please refer to 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, 2019.

BOSTON PRIVATE FINANCIAL HOLDINGS, INC.

Consolidated Income Statements

Unaudited ($ in thousands, except share and per share data)

Year ended December 31,

2020 2019

REVENUE:

Interest income $ 273,705 $ 308,447

Interest expense 40,279 80,371

Net interest income 233,426 228,076

Provision/(credit) for loan losses ^4 31,998 (3,564 )

Net interest income after Provision/(credit) for 201,428 231,640 loan losses



Wealth management and trust fees ^5 72,888 75,757

Investment management fees 6,261 10,155

Private banking fee income 10,509 10,948

Gain on sale of loans, net 2,028 1,622

Total core fees and income 91,686 98,482

Total other income 2,198 3,065

TOTAL REVENUE ^6 327,310 329,623



NONINTEREST EXPENSE:

Salaries and employee benefits 139,726 134,302

Occupancy and equipment 31,079 32,038

Information systems 29,567 22,642

Professional services 13,816 15,228

Marketing and business development 6,292 6,439

Amortization of intangibles 2,697 2,691

FDIC insurance 2,603 1,285

Restructuring - 1,646

Other ^4 15,485 13,935

TOTAL NONINTEREST EXPENSE 241,265 230,206



INCOME BEFORE INCOME TAXES 54,047 102,981

Income tax expense 8,888 22,591

Net income before attribution to noncontrolling 45,159 80,390 interests

Less: Net income attributable to noncontrolling 6 362 interests

NET INCOME ATTRIBUTABLE TO THE COMPANY $ 45,153 $ 80,028



Adjustments, treasury stock method ^7 414 1,143

NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 45,567 $ 81,171



COMMON SHARE DATA

Weighted average basic shares outstanding 82,359,528 83,430,740

Weighted average diluted shares outstanding ^8 82,757,785 83,920,792

Diluted earnings per share $ 0.55 $ 0.97



^4 Total Provision for credit losses includes the Provision/(credit) for loanlosses and the Reserve for unfunded loan commitments within Other expense.



^5 Wealth management and trust fees consists of revenue from Boston PrivateWealth LLC ("BPW"), KLS Professional Advisors Group, LLC ("KLS") through theeffective date of its merger with BPW, and the trust operations of BostonPrivate Bank & Trust Company.



^6 Total revenue is the sum of Net interest income, Total core fees and income,and Total other income.



^7 Adjustments to Net income attributable to the Company to arrive at Netincome attributable to common shareholders, treasury stock method, as presentedin these tables, include decreases/(increases) in Noncontrolling interestsredemption value, if any.



^8 For a description of the Company's policies regarding Diluted earnings pershare, please refer to Part II. Item 8. "Financial Statements and SupplementaryData - Note 16: Earnings Per Share" in the Company's Annual Report on Form 10-Kfor the year ended December 31, 2019.

BOSTON PRIVATE FINANCIAL HOLDINGS, INC.

Consolidated Financial Highlights

Unaudited ($ in thousands, except share and per share data)

4Q20

3Q20

2Q20

1Q20

4Q19

KEY STATISTICS:

Return on average assets (non-GAAP) 9

1.00

%

0.96

%

(0.15)

%

0.04

%

0.96

%

ROACE (non-GAAP) 9

11.50

%

10.68

%

(1.58)

%

0.39

%

10.29

%

ROATCE (non-GAAP) 9

12.69

%

11.88

%

(1.43)

%

0.72

%

11.51

%

Efficiency ratio (non-GAAP) 9

66.7

%

74.5

%

74.4

%

76.4

%

69.7

%

Noninterest income to total revenue

31.0

%

28.5

%

27.8

%

27.3

%

32.3

%

Net interest margin

2.52

%

2.61

%

2.75

%

2.76

%

2.70

%

Average loan to average deposit ratio

86.1

%

94.6

%

100.5

%

99.0

%

101.6

%

Cost of total deposits

0.26

%

0.33

%

0.41

%

0.72

%

0.86

%

Cost of interest-bearing deposits

0.37

%

0.48

%

0.59

%

1.02

%

1.20

%

Cost of total funding

0.32

%

0.37

%

0.50

%

0.83

%

0.99

%

Allowance for loan losses / Total loans

1.14

%

1.17

%

1.22

%

0.97

%

1.03

%

Nonperforming loans / Total loans

0.34

%

0.57

%

0.35

%

0.35

%

0.23

%

Net (charge-offs)/recoveries / Total loans 9

(0.02)

%

(0.01)

%

(0.08)

%

(0.02)

%

0.02

%

CAPITAL HIGHLIGHTS:

Tier 1 common equity 3

$

773,017

$

752,492

$

731,316

$

742,044

$

745,926

Tier 1 capital 3

$

873,039

$

852,514

$

831,338

$

842,066

$

846,337

Total capital 3

$

956,789

$

935,887

$

913,936

$

914,572

$

919,573

Risk-weighted assets 3

$

6,696,025

$

6,659,752

$

6,593,957

$

6,627,339

$

6,530,804

Average assets for leverage 3

$

9,796,299

$

9,237,942

$

9,009,565

$

8,691,254

$

8,659,944

Tier 1 common equity ratio 3

11.54

%

11.30

%

11.09

%

11.20

%

11.42

%

Tier 1 risk-based capital ratio 3

13.04

%

12.80

%

12.61

%

12.71

%

12.96

%

Total risk-based capital ratio 3

14.29

%

14.05

%

13.86

%

13.80

%

14.08

%

Tier 1 leverage capital ratio 3

8.91

%

9.23

%

9.23

%

9.69

%

9.77

%

Total equity / Total assets

8.64

%

8.97

%

9.01

%

9.48

%

9.27

%

Tangible common equity / Tangible assets (non-GAAP)

8.03

%

8.33

%

8.34

%

8.77

%

8.57

%

End of period market price per share

$

8.45

$

5.52

$

6.88

$

7.15

$

12.03

End of period shares outstanding

82,334,257

82,254,594

82,058,483

81,800,486

83,265,674

Book value per common share

$

10.54

$

10.29

$

10.06

$

10.13

$

9.84

Tangible book value per share (non-GAAP)

$

9.73

$

9.48

$

9.25

$

9.31

$

9.02

Common Equity Repurchase Program:

Total shares of common stock repurchased

-

-

-

1,565,060

-

Average price paid per share of common stock

$

-

$

-

$

-

$

8.18

$

-

Aggregate repurchases of common stock ($ in millions)

$

-

$

-

$

-

$

12.8

$

-

3 Current quarter information is presented based on estimated data.

9 Annualized.

BOSTON PRIVATEFINANCIAL HOLDINGS, INC.

ConsolidatedFinancial Highlights

Unaudited ($ inthousands, except share andper share data)

4Q20 3Q20 2Q20 1Q20 4Q19

KEY STATISTICS:

Return onaverage assets 1.00 % 0.96 % (0.15) % 0.04 % 0.96 %(non-GAAP) ^9

ROACE (non-GAAP) 11.50 % 10.68 % (1.58) % 0.39 % 10.29 %^ 9

ROATCE 12.69 % 11.88 % (1.43) % 0.72 % 11.51 %(non-GAAP) ^9

Efficiency ratio 66.7 % 74.5 % 74.4 % 76.4 % 69.7 %(non-GAAP)^ 9

Noninterestincome to total 31.0 % 28.5 % 27.8 % 27.3 % 32.3 %revenue



Net interest 2.52 % 2.61 % 2.75 % 2.76 % 2.70 %margin

Average loan toaverage deposit 86.1 % 94.6 % 100.5 % 99.0 % 101.6 %ratio

Cost of total 0.26 % 0.33 % 0.41 % 0.72 % 0.86 %deposits

Cost ofinterest-bearing 0.37 % 0.48 % 0.59 % 1.02 % 1.20 %deposits

Cost of total 0.32 % 0.37 % 0.50 % 0.83 % 0.99 %funding



Allowance forloan losses / 1.14 % 1.17 % 1.22 % 0.97 % 1.03 %Total loans

Nonperformingloans / Total 0.34 % 0.57 % 0.35 % 0.35 % 0.23 %loans

Net(charge-offs)/ (0.02) % (0.01) % (0.08) % (0.02) % 0.02 %recoveries /Total loans ^9



CAPITAL HIGHLIGHTS:

Tier 1 common $ 773,017 $ 752,492 $ 731,316 $ 742,044 $ 745,926equity ^3

Tier 1 capital ^ $ 873,039 $ 852,514 $ 831,338 $ 842,066 $ 846,3373

Total capital ^3 $ 956,789 $ 935,887 $ 913,936 $ 914,572 $ 919,573



Risk-weighted $ 6,696,025 $ 6,659,752 $ 6,593,957 $ 6,627,339 $ 6,530,804assets ^3

Average assets $ 9,796,299 $ 9,237,942 $ 9,009,565 $ 8,691,254 $ 8,659,944for leverage ^3



Tier 1 common 11.54 % 11.30 % 11.09 % 11.20 % 11.42 %equity ratio ^3

Tier 1risk-based 13.04 % 12.80 % 12.61 % 12.71 % 12.96 %capital ratio ^3

Total risk-based 14.29 % 14.05 % 13.86 % 13.80 % 14.08 %capital ratio ^3

Tier 1 leverage 8.91 % 9.23 % 9.23 % 9.69 % 9.77 %capital ratio ^3



Total equity / 8.64 % 8.97 % 9.01 % 9.48 % 9.27 %Total assets

Tangible commonequity / 8.03 % 8.33 % 8.34 % 8.77 % 8.57 %Tangible assets(non-GAAP)



End of periodmarket price per $ 8.45 $ 5.52 $ 6.88 $ 7.15 $ 12.03 share

End of periodshares 82,334,257 82,254,594 82,058,483 81,800,486 83,265,674outstanding

Book value per $ 10.54 $ 10.29 $ 10.06 $ 10.13 $ 9.84 common share

Tangible bookvalue per share $ 9.73 $ 9.48 $ 9.25 $ 9.31 $ 9.02 (non-GAAP)



Common EquityRepurchase Program:

Total shares ofcommon stock - - - 1,565,060 - repurchased

Average pricepaid per share $ - $ - $ - $ 8.18 $ - of common stock

Aggregaterepurchases of $ - $ - $ - $ 12.8 $ - common stock ($in millions)



^3 Current quarterinformation is presentedbased on estimated data.

^9 Annualized.

BOSTON PRIVATE FINANCIAL HOLDINGS, INC.

Consolidated AUM and Balance Sheet - End of Period Balances

Unaudited ($ in thousands)

4Q20

3Q20

2Q20

1Q20

4Q19

ASSETS UNDER MANAGEMENT AND ADVISORY ("AUM"):

Wealth Management and Trust

$

16,574,000

$

15,581,000

$

14,889,000

$

13,497,000

$

15,224,000

Other 2

526,000

672,000

1,067,000

1,016,000

1,544,000

TOTAL AUM

$

17,100,000

$

16,253,000

$

15,956,000

$

14,513,000

$

16,768,000

AUM Rollforward:

Beginning balance

$

16,253,000

$

15,956,000

$

14,513,000

$

16,768,000

$

16,228,000

Net flows

(396,000

)

(407,000

)

(40,000

)

150,000

(209,000

)

Market returns

1,243,000

704,000

1,483,000

(2,405,000

)

749,000

Ending balance

$

17,100,000

$

16,253,000

$

15,956,000

$

14,513,000

$

16,768,000

AUM Net Flows:

Wealth Management and Trust

$

(128,000

)

$

(12,000

)

$

60,000

$

176,000

$

(114,000

)

Other 2

(268,000

)

(395,000

)

(100,000

)

(26,000

)

(95,000

)

TOTAL NET FLOWS

$

(396,000

)

$

(407,000

)

$

(40,000

)

$

150,000

$

(209,000

)

DEPOSITS:

Demand deposits (non-interest bearing)

$

2,481,676

$

2,346,126

$

2,293,864

$

2,020,440

$

1,971,013

Savings and NOW

905,692

756,797

758,656

653,006

646,199

Money market

4,699,882

4,187,657

3,753,228

3,468,701

3,969,330

Certificates of deposit

508,116

537,139

621,649

693,425

654,934

TOTAL DEPOSITS

$

8,595,366

$

7,827,719

$

7,427,397

$

6,835,572

$

7,241,476

LOANS:

Commercial and industrial

$

558,343

$

583,145

$

565,748

$

670,744

$

694,034

Paycheck Protection Program

312,356

371,496

370,034

-

-

Commercial tax-exempt

442,159

472,342

419,264

445,319

447,927

Commercial real estate

2,757,375

2,659,890

2,676,708

2,626,299

2,551,274

Construction and land

159,204

211,697

240,211

238,293

225,983

Residential

2,677,464

2,729,164

2,859,627

2,841,926

2,839,155

Home equity

77,364

81,797

84,588

89,350

83,657

Consumer

120,044

113,038

116,774

131,407

134,674

TOTAL LOANS

$

7,104,309

$

7,222,569

$

7,332,954

$

7,043,338

$

6,976,704

2 Includes results from Dalton, Greiner, Hartman, Maher & Co, LLC ("DGHM")

BOSTON PRIVATE FINANCIAL HOLDINGS, INC.

Consolidated AUM and Balance Sheet - End of Period Balances

Unaudited ($ in thousands)

4Q20 3Q20 2Q20 1Q20 4Q19

ASSETS UNDER MANAGEMENT AND ADVISORY ("AUM"):

WealthManagement $ 16,574,000 $ 15,581,000 $ 14,889,000 $ 13,497,000 $ 15,224,000 and Trust

Other ^2 526,000 672,000 1,067,000 1,016,000 1,544,000

TOTAL AUM $ 17,100,000 $ 16,253,000 $ 15,956,000 $ 14,513,000 $ 16,768,000



AUM Rollforward:

Beginning $ 16,253,000 $ 15,956,000 $ 14,513,000 $ 16,768,000 $ 16,228,000 balance

Net flows (396,000 ) (407,000 ) (40,000 ) 150,000 (209,000 )

Market 1,243,000 704,000 1,483,000 (2,405,000 ) 749,000 returns

Ending $ 17,100,000 $ 16,253,000 $ 15,956,000 $ 14,513,000 $ 16,768,000 balance



AUM Net Flows:

WealthManagement $ (128,000 ) $ (12,000 ) $ 60,000 $ 176,000 $ (114,000 ) and Trust

Other ^2 (268,000 ) (395,000 ) (100,000 ) (26,000 ) (95,000 )

TOTAL NET $ (396,000 ) $ (407,000 ) $ (40,000 ) $ 150,000 $ (209,000 ) FLOWS



DEPOSITS:

Demanddeposits $ 2,481,676 $ 2,346,126 $ 2,293,864 $ 2,020,440 $ 1,971,013 (non-interestbearing)

Savings and 905,692 756,797 758,656 653,006 646,199 NOW

Money market 4,699,882 4,187,657 3,753,228 3,468,701 3,969,330

Certificates 508,116 537,139 621,649 693,425 654,934 of deposit

TOTAL $ 8,595,366 $ 7,827,719 $ 7,427,397 $ 6,835,572 $ 7,241,476 DEPOSITS



LOANS:

Commercialand $ 558,343 $ 583,145 $ 565,748 $ 670,744 $ 694,034 industrial

PaycheckProtection 312,356 371,496 370,034 - - Program

Commercial 442,159 472,342 419,264 445,319 447,927 tax-exempt

Commercial 2,757,375 2,659,890 2,676,708 2,626,299 2,551,274 real estate

Construction 159,204 211,697 240,211 238,293 225,983 and land

Residential 2,677,464 2,729,164 2,859,627 2,841,926 2,839,155

Home equity 77,364 81,797 84,588 89,350 83,657

Consumer 120,044 113,038 116,774 131,407 134,674

TOTAL LOANS $ 7,104,309 $ 7,222,569 $ 7,332,954 $ 7,043,338 $ 6,976,704



^2 Includes results from Dalton, Greiner, Hartman, Maher & Co, LLC ("DGHM")

BOSTON PRIVATE FINANCIAL HOLDINGS, INC.

Provision and Asset Quality

Unaudited ($ in thousands)

4Q20

3Q20

2Q20

1Q20

4Q19

PROVISION:

Provision/(credit) for loan losses

$

(2,999

)

$

(4,569

)

$

22,604

$

16,962

$

(3,668

)

Reserve for unfunded loan commitments 4

(2,386

)

1,750

2,829

1,827

(23

)

Total Provision/(credit) for credit losses

$

(5,385

)

$

(2,819

)

$

25,433

$

18,789

$

(3,691

)

CHARGE-OFFS:

Loan charge-offs

$

(511

)

$

(245

)

$

(1,546

)

$

(528

)

$

(285

)

Loan recoveries

197

41

55

180

576

NET (CHARGE-OFFS)/RECOVERIES

$

(314

)

$

(204

)

$

(1,491

)

$

(348

)

$

291

Net charge-offs to average loans (annualized)

(0.02

)%

(0.01

)%

(0.08

)%

(0.02

)%

0.02

%

Net (Charge-offs)/Recoveries by Loan Type:

Commercial and industrial

$

(474

)

$

(136

)

$

(337

)

$

(473

)

$

118

Commercial real estate

160

-

-

-

183

Home equity

-

-

(1,157

)

132

4

Consumer

-

(68

)

3

(7

)

(14

)

NET (CHARGE-OFFS)/RECOVERIES

$

(314

)

$

(204

)

$

(1,491

)

$

(348

)

$

291

LOAN QUALITY DATA:

Special mention loans

$

187,237

$

199,509

$

191,882

$

92,623

$

52,026

Accruing classified loans 10

106,883

81,827

88,586

87,948

57,922

Nonaccrual loans

23,851

41,263

25,604

24,314

16,103

Total classified

130,734

123,090

114,190

112,262

74,025

Criticized and classified loans

$

317,971

$

322,599

$

306,072

$

204,885

$

126,051

Loans 30-89 days past due and accruing 11

$

19,862

$

5,635

$

5,535

$

14,852

$

25,945

4 Total Provision for credit losses includes the Provision/(credit) for loan losses and the Reserve for unfunded loan commitments within Other expense.

10 Accruing classified 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.

11 At June 30, 2020, the Company had one loan totaling less than $0.1 million that was more than 90 days past due but still on accrual status. This loan originated in the New England region. The Company had no other loans outstanding more than 90 days past due but still on accrual status in comparative periods.

BOSTONPRIVATEFINANCIAL HOLDINGS,INC.

Provision and Asset Quality

Unaudited ($ in thousands)

4Q20 3Q20 2Q20 1Q20 4Q19

PROVISION:

Provision/(credit) for $ (2,999 ) $ (4,569 ) $ 22,604 $ 16,962 $ (3,668 ) loan losses

Reserve forunfunded loan (2,386 ) 1,750 2,829 1,827 (23 ) commitments ^4

TotalProvision/ $ (5,385 ) $ (2,819 ) $ 25,433 $ 18,789 $ (3,691 ) (credit) forcredit losses



CHARGE-OFFS:

Loan $ (511 ) $ (245 ) $ (1,546 ) $ (528 ) $ (285 ) charge-offs

Loan 197 41 55 180 576 recoveries

NET(CHARGE-OFFS) $ (314 ) $ (204 ) $ (1,491 ) $ (348 ) $ 291 /RECOVERIES

Netcharge-offsto average (0.02 )% (0.01 )% (0.08 )% (0.02 )% 0.02 %loans(annualized)



Net(Charge-offs) /Recoveriesby Loan Type:

Commercialand $ (474 ) $ (136 ) $ (337 ) $ (473 ) $ 118 industrial

Commercial 160 - - - 183 real estate

Home equity - - (1,157 ) 132 4

Consumer - (68 ) 3 (7 ) (14 )

NET(CHARGE-OFFS) $ (314 ) $ (204 ) $ (1,491 ) $ (348 ) $ 291 /RECOVERIES



LOAN QUALITY DATA:

Special $ 187,237 $ 199,509 $ 191,882 $ 92,623 $ 52,026 mention loans



Accruingclassified 106,883 81,827 88,586 87,948 57,922 loans ^10

Nonaccrual 23,851 41,263 25,604 24,314 16,103 loans

Total 130,734 123,090 114,190 112,262 74,025 classified

Criticizedand $ 317,971 $ 322,599 $ 306,072 $ 204,885 $ 126,051 classifiedloans



Loans 30-89days past due $ 19,862 $ 5,635 $ 5,535 $ 14,852 $ 25,945 and accruing^11



^4 Total Provision for credit losses includes the Provision/(credit) for loanlosses and the Reserve for unfunded loan commitments within Other expense.



^10 Accruing classified loans include loans that are classified as substandardbut are still accruing interest income. Boston Private Bank & Trust Company mayclassify a loan as substandard where known information about possible creditproblems of the related borrowers causes management to have doubts as to theability of such borrowers to comply with the present repayment terms and whichmay result in disclosure of such loans as nonaccrual at some time in thefuture.



^11 At June 30, 2020, the Company had one loan totaling less than $0.1 millionthat was more than 90 days past due but still on accrual status. This loanoriginated in the New England region. The Company had no other loansoutstanding more than 90 days past due but still on accrual status incomparative periods.

BOSTON PRIVATE FINANCIAL HOLDINGS, INC.

Average Balances, Yields, and Rates

Unaudited ($ in thousands)

Average Balance

Interest Income/Expense

Average Yield/Rate

4Q20

3Q20

4Q19

4Q20

3Q20

4Q19

4Q20

3Q20

4Q19

INTEREST-EARNING ASSETS

Cash and investments:

Taxable investment securities

$

209,143

$

201,515

$

201,535

$

849

$

853

$

869

1.62

%

1.69

%

1.72

%

Non-taxable investment securities

318,291

313,130

311,705

1,973

1,974

1,976

2.48

%

2.52

%

2.54

%

Mortgage-backed securities

598,616

515,813

489,927

2,585

2,354

2,568

1.73

%

1.83

%

2.10

%

Short-term investments and other

976,344

432,117

130,519

687

654

1,210

0.28

%

0.59

%

3.65

%

Total cash and investments

2,102,394

1,462,575

1,133,686

6,094

5,835

6,623

1.16

%

1.59

%

2.33

%

Loans:12

Commercial and industrial

1,035,783

1,032,816

1,142,015

8,504

8,314

11,276

3.21

%

3.15

%

3.86

%

Paycheck Protection Program

348,827

373,047

-

3,798

2,390

-

4.26

%

2.51

%

-

%

Commercial real estate

2,711,396

2,652,770

2,562,380

24,096

23,546

28,285

3.48

%

3.47

%

4.32

%

Construction and land

171,873

218,211

216,754

1,642

2,109

2,588

3.74

%

3.78

%

4.67

%

Residential

2,720,733

2,809,871

2,934,786

21,041

22,089

24,275

3.09

%

3.14

%

3.31

%

Home equity

79,485

84,226

84,632

676

623

965

3.38

%

2.94

%

4.53

%

Other consumer

121,139

111,657

132,143

500

547

1,279

1.64

%

1.95

%

3.84

%

Total loans

7,189,236

7,282,598

7,072,710

60,257

59,618

68,668

3.31

%

3.23

%

3.83

%

Total earning assets

9,291,630

8,745,173

8,206,396

66,351

65,453

75,291

2.82

%

2.96

%

3.62

%

LESS: Allowance for loan losses

84,679

89,370

75,283

Cash and due from banks

38,732

34,761

48,287

Other assets

651,008

655,999

559,350

TOTAL AVERAGE ASSETS

$

9,896,691

$

9,346,563

$

8,738,750

INTEREST-BEARING LIABILITIES

Interest-bearing deposits:13

Savings and NOW

$

793,923

$

722,742

$

644,502

$

200

$

197

$

252

0.10

%

0.11

%

0.16

%

Money market

4,551,046

4,070,026

3,632,258

4,255

4,790

11,449

0.37

%

0.47

%

1.25

%

Certificates of deposit

522,567

585,729

680,466

981

1,447

3,322

0.75

%

0.98

%

1.94

%

Total interest-bearing deposits13

5,867,536

5,378,497

4,957,226

5,436

6,434

15,023

0.37

%

0.48

%

1.20

%

Junior subordinated debentures

106,363

106,363

106,363

481

508

966

1.77

%

1.87

%

3.56

%

FHLB borrowings and other

267,865

388,412

591,682

1,027

687

3,177

1.50

%

0.69

%

2.10

%

Total interest-bearing liabilities13

6,241,764

5,873,272

5,655,271

6,944

7,629

19,166

0.44

%

0.52

%

1.34

%

Non-interest bearing demand deposits 13

2,482,969

2,321,223

2,001,714

Payables and other liabilities

310,820

309,462

261,503

Total average liabilities

9,035,553

8,503,957

7,918,488

Redeemable noncontrolling interests

-

-

1,446

Average shareholders' equity

861,138

842,606

818,816

TOTAL AVERAGE LIABILITIES, RNCI, AND SHAREHOLDERS' EQUITY

$

9,896,691

$

9,346,563

$

8,738,750

Net interest income

$

59,407

$

57,824

$

56,125

Interest rate spread

2.38

%

2.44

%

2.28

%

Net interest margin

2.52

%

2.61

%

2.70

%

Average total deposits 13

$

8,350,505

$

7,699,720

$

6,958,940

0.26

%

0.33

%

0.86

%

Average total deposits and borrowings 13

$

8,724,733

$

8,194,495

$

7,656,985

0.32

%

0.37

%

0.99

%

12 Average loans includes Loans held for sale and Nonaccrual loans

13 Average total deposits is the sum of Average total interest-bearing deposits and Average non-interest bearing demand deposits. Average total deposits and borrowings is the sum of Average total interest-bearing liabilities and Average non-interest bearing demand deposits.

BOSTON PRIVATE FINANCIAL HOLDINGS, INC.

Average Balances, Yields, and Rates

Unaudited ($ in thousands)

Average Balance Interest Income/Expense Average Yield/Rate

4Q20 3Q20 4Q19 4Q20 3Q20 4Q19 4Q20 3Q20 4Q19

INTEREST-EARNING ASSETS

Cash and investments:

Taxableinvestment $ 209,143 $ 201,515 $ 201,535 $ 849 $ 853 $ 869 1.62 % 1.69 % 1.72 %securities

Non-taxableinvestment 318,291 313,130 311,705 1,973 1,974 1,976 2.48 % 2.52 % 2.54 %securities

Mortgage-backed 598,616 515,813 489,927 2,585 2,354 2,568 1.73 % 1.83 % 2.10 %securities

Short-terminvestments and 976,344 432,117 130,519 687 654 1,210 0.28 % 0.59 % 3.65 %other

Total cash and 2,102,394 1,462,575 1,133,686 6,094 5,835 6,623 1.16 % 1.59 % 2.33 %investments

Loans: ^12

Commercial and 1,035,783 1,032,816 1,142,015 8,504 8,314 11,276 3.21 % 3.15 % 3.86 %industrial

PaycheckProtection 348,827 373,047 - 3,798 2,390 - 4.26 % 2.51 % - %Program

Commercial real 2,711,396 2,652,770 2,562,380 24,096 23,546 28,285 3.48 % 3.47 % 4.32 %estate

Construction and 171,873 218,211 216,754 1,642 2,109 2,588 3.74 % 3.78 % 4.67 %land

Residential 2,720,733 2,809,871 2,934,786 21,041 22,089 24,275 3.09 % 3.14 % 3.31 %

Home equity 79,485 84,226 84,632 676 623 965 3.38 % 2.94 % 4.53 %

Other consumer 121,139 111,657 132,143 500 547 1,279 1.64 % 1.95 % 3.84 %

Total loans 7,189,236 7,282,598 7,072,710 60,257 59,618 68,668 3.31 % 3.23 % 3.83 %

Total earning 9,291,630 8,745,173 8,206,396 66,351 65,453 75,291 2.82 % 2.96 % 3.62 %assets



LESS: Allowance 84,679 89,370 75,283 for loan losses

Cash and due 38,732 34,761 48,287 from banks

Other assets 651,008 655,999 559,350

TOTAL AVERAGE $ 9,896,691 $ 9,346,563 $ 8,738,750 ASSETS



INTEREST-BEARING LIABILITIES

Interest-bearing deposits: ^13

Savings and NOW $ 793,923 $ 722,742 $ 644,502 $ 200 $ 197 $ 252 0.10 % 0.11 % 0.16 %

Money market 4,551,046 4,070,026 3,632,258 4,255 4,790 11,449 0.37 % 0.47 % 1.25 %

Certificates of 522,567 585,729 680,466 981 1,447 3,322 0.75 % 0.98 % 1.94 %deposit

Totalinterest-bearing 5,867,536 5,378,497 4,957,226 5,436 6,434 15,023 0.37 % 0.48 % 1.20 %deposits ^13

Juniorsubordinated 106,363 106,363 106,363 481 508 966 1.77 % 1.87 % 3.56 %debentures

FHLB borrowings 267,865 388,412 591,682 1,027 687 3,177 1.50 % 0.69 % 2.10 %and other

Totalinterest-bearing 6,241,764 5,873,272 5,655,271 6,944 7,629 19,166 0.44 % 0.52 % 1.34 %liabilities ^13



Non-interestbearing demand 2,482,969 2,321,223 2,001,714 deposits ^13

Payables andother 310,820 309,462 261,503 liabilities

Total average 9,035,553 8,503,957 7,918,488 liabilities

Redeemablenoncontrolling - - 1,446 interests

Averageshareholders' 861,138 842,606 818,816 equity

TOTAL AVERAGELIABILITIES,RNCI, AND $ 9,896,691 $ 9,346,563 $ 8,738,750 SHAREHOLDERS'EQUITY

Net interest $ 59,407 $ 57,824 $ 56,125 income

Interest rate 2.38 % 2.44 % 2.28 %spread

Net interest 2.52 % 2.61 % 2.70 %margin



Average total $ 8,350,505 $ 7,699,720 $ 6,958,940 0.26 % 0.33 % 0.86 %deposits ^13

Average totaldeposits and $ 8,724,733 $ 8,194,495 $ 7,656,985 0.32 % 0.37 % 0.99 %borrowings ^13



^12 Average loans includes Loans held for sale and Nonaccrual loans



^13 Average total deposits is the sum of Average total interest-bearingdeposits and Average non-interest bearing demand deposits. Average totaldeposits and borrowings is the sum of Average total interest-bearingliabilities and Average non-interest bearing demand deposits.

BOSTON PRIVATE FINANCIAL HOLDINGS, INC.

Average Balances, Yields, and Rates

Unaudited ($ in thousands)

Average Balance

Interest Income/Expense

Average Yield/Rate

Year Ended

Year Ended

Year Ended

INTEREST-EARNING ASSETS

12/31/20

12/31/19

12/31/20

12/31/19

12/31/20

12/31/19

Cash and investments:

Taxable investment securities

$

202,557

$

217,653

$

3,429

$

4,113

1.69

%

1.89

%

Non-taxable investment securities

315,903

307,005

7,950

7,702

2.52

%

2.51

%

Mortgage-backed securities

535,302

502,949

10,292

10,793

1.92

%

2.15

%

Short-term investments and other

437,177

110,877

2,994

4,259

0.69

%

3.84

%

Total cash and investments

1,490,939

1,138,484

24,665

26,867

1.65

%

2.36

%

Loans: 12

Commercial and industrial

1,064,512

1,101,635

37,250

44,949

3.50

%

4.08

%

Paycheck Protection Program

251,016

-

7,761

-

3.11

%

-

%

Commercial real estate

2,651,554

2,496,878

99,726

115,507

3.76

%

4.63

%

Construction and land

214,074

206,624

8,574

10,198

4.00

%

4.94

%

Residential

2,810,786

2,983,173

89,677

101,122

3.19

%

3.39

%

Home equity

84,502

88,917

2,901

4,353

3.43

%

4.90

%

Other consumer

122,312

129,701

3,151

5,451

2.58

%

4.20

%

Total loans

7,198,756

7,006,928

249,040

281,580

3.46

%

4.02

%

Total earning assets

8,689,695

8,145,412

273,705

308,447

3.15

%

3.79

%

LESS: Allowance for loan losses

73,636

74,969

Cash and due from banks

40,800

47,286

Other assets

628,049

527,269

TOTAL AVERAGE ASSETS

$

9,284,908

$

8,644,998

INTEREST-BEARING LIABILITIES

Interest-bearing deposits:13

Savings and NOW

$

709,357

$

654,712

$

816

$

1,099

0.12

%

0.17

%

Money market

4,014,481

3,395,842

23,550

43,521

0.59

%

1.28

%

Certificates of deposit

611,829

730,693

7,635

14,463

1.25

%

1.98

%

Total interest-bearing deposits 13

5,335,667

4,781,247

32,001

59,083

0.60

%

1.24

%

Junior subordinated debentures

106,363

106,363

2,670

4,189

2.50

%

3.94

%

FHLB borrowings and other

430,176

748,628

5,608

17,099

1.30

%

2.28

%

Total interest-bearing liabilities 13

5,872,206

5,636,238

40,279

80,371

0.69

%

1.43

%

Non-interest bearing demand deposits 13

2,266,801

1,962,951

Payables and other liabilities

299,301

247,163

Total average liabilities

8,438,308

7,846,352

Redeemable noncontrolling interests

308

1,593

Average shareholders' equity

846,292

797,053

TOTAL AVERAGE LIABILITIES, RNCI, AND SHAREHOLDERS' EQUITY

$

9,284,908

$

8,644,998

Net interest income

$

233,426

$

228,076

Interest rate spread

2.46

%

2.36

%

Net interest margin

2.69

%

2.80

%

Average total deposits 13

$

7,602,468

$

6,744,198

0.42

%

0.88

%

Average total deposits and borrowings 13

$

8,139,007

$

7,599,189

0.49

%

1.06

%

12 Average loans includes Loans held for sale and Nonaccrual loans

13 Average total deposits is the sum of Average total interest-bearing deposits and Average non-interest bearing demand deposits. Average total deposits and borrowings is the sum of Average total interest-bearing liabilities and Average non-interest bearing demand deposits.

BOSTON PRIVATE FINANCIAL HOLDINGS, INC.

Average Balances, Yields, and Rates

Unaudited ($ in thousands)

Average Balance Interest Income/Expense Average Yield /Rate

Year Ended Year Ended Year Ended

INTEREST-EARNING 12/31/20 12/31/19 12/31/20 12/31/19 12/31/ 12/31/ASSETS 20 19

Cash and investments:

Taxableinvestment $ 202,557 $ 217,653 $ 3,429 $ 4,113 1.69 % 1.89 %securities

Non-taxableinvestment 315,903 307,005 7,950 7,702 2.52 % 2.51 %securities

Mortgage-backed 535,302 502,949 10,292 10,793 1.92 % 2.15 %securities

Short-terminvestments and 437,177 110,877 2,994 4,259 0.69 % 3.84 %other

Total cash and 1,490,939 1,138,484 24,665 26,867 1.65 % 2.36 %investments

Loans: ^12

Commercial and 1,064,512 1,101,635 37,250 44,949 3.50 % 4.08 %industrial

PaycheckProtection 251,016 - 7,761 - 3.11 % - %Program

Commercial real 2,651,554 2,496,878 99,726 115,507 3.76 % 4.63 %estate

Construction and 214,074 206,624 8,574 10,198 4.00 % 4.94 %land

Residential 2,810,786 2,983,173 89,677 101,122 3.19 % 3.39 %

Home equity 84,502 88,917 2,901 4,353 3.43 % 4.90 %

Other consumer 122,312 129,701 3,151 5,451 2.58 % 4.20 %

Total loans 7,198,756 7,006,928 249,040 281,580 3.46 % 4.02 %

Total earning 8,689,695 8,145,412 273,705 308,447 3.15 % 3.79 %assets



LESS: Allowance 73,636 74,969 for loan losses

Cash and due 40,800 47,286 from banks

Other assets 628,049 527,269

TOTAL AVERAGE $ 9,284,908 $ 8,644,998 ASSETS



INTEREST-BEARING LIABILITIES

Interest-bearing deposits: ^13

Savings and NOW $ 709,357 $ 654,712 $ 816 $ 1,099 0.12 % 0.17 %

Money market 4,014,481 3,395,842 23,550 43,521 0.59 % 1.28 %

Certificates of 611,829 730,693 7,635 14,463 1.25 % 1.98 %deposit

Totalinterest-bearing 5,335,667 4,781,247 32,001 59,083 0.60 % 1.24 %deposits ^13

Juniorsubordinated 106,363 106,363 2,670 4,189 2.50 % 3.94 %debentures

FHLB borrowings 430,176 748,628 5,608 17,099 1.30 % 2.28 %and other

Totalinterest-bearing 5,872,206 5,636,238 40,279 80,371 0.69 % 1.43 %liabilities ^13



Non-interestbearing demand 2,266,801 1,962,951 deposits ^13

Payables andother 299,301 247,163 liabilities

Total average 8,438,308 7,846,352 liabilities

Redeemablenoncontrolling 308 1,593 interests

Averageshareholders' 846,292 797,053 equity

TOTAL AVERAGELIABILITIES,RNCI, AND $ 9,284,908 $ 8,644,998 SHAREHOLDERS'EQUITY

Net interest $ 233,426 $ 228,076 income

Interest rate 2.46 % 2.36 %spread

Net interest 2.69 % 2.80 %margin



Average total $ 7,602,468 $ 6,744,198 0.42 % 0.88 %deposits ^13

Average totaldeposits and $ 8,139,007 $ 7,599,189 0.49 % 1.06 %borrowings ^13

^12 Average loans includes Loans held for sale and Nonaccrual loans



^13 Average total deposits is the sum of Average total interest-bearingdeposits and Average non-interest bearing demand deposits. Average totaldeposits and borrowings is the sum of Average total interest-bearingliabilities and Average non-interest bearing demand deposits.

BOSTON PRIVATE FINANCIAL HOLDINGS, INC.

Regional Loan Data 14

Unaudited ($ in thousands)

4Q20

3Q20

2Q20

1Q20

4Q19

New England

$

3,593,925

$

3,669,746

$

3,781,603

$

3,724,959

$

3,776,747

Northern California

1,776,682

1,763,556

1,741,255

1,618,668

1,532,786

Southern California

1,733,702

1,789,267

1,810,096

1,699,711

1,667,171

Total loans

$

7,104,309

$

7,222,569

$

7,332,954

$

7,043,338

$

6,976,704

Loans (charged-off)/recovered, net:

New England

$

162

$

(111

)

$

7

$

15

$

414

Northern California

(147

)

-

3

122

(10

)

Southern California

(329

)

(93

)

(1,501

)

(485

)

(113

)

Total net loans (charged-off)/recovered

$

(314

)

$

(204

)

$

(1,491

)

$

(348

)

$

291

Special mention loans:

New England

$

94,235

$

103,060

$

83,026

$

61,741

$

21,691

Northern California

64,361

63,192

75,609

5,947

5,227

Southern California

28,641

33,257

33,247

24,935

25,108

Total special mention loans

$

187,237

$

199,509

$

191,882

$

92,623

$

52,026

Accruing classified loans:

New England

$

89,582

$

74,682

$

53,124

$

50,483

$

20,428

Northern California

340

4,589

21,712

24,843

24,946

Southern California

16,961

2,556

13,750

12,622

12,548

Total accruing classified loans

$

106,883

$

81,827

$

88,586

$

87,948

$

57,922

Nonaccruing loans:

New England

$

12,643

$

11,807

$

11,630

$

11,965

$

9,764

Northern California

6,331

25,133

9,459

6,575

319

Southern California

4,877

4,323

4,515

5,774

6,020

Total nonaccruing loans

$

23,851

$

41,263

$

25,604

$

24,314

$

16,103

14 The concentration of the Private Banking loan data and credit quality is primarily based on the location of the lenders' regional offices.

BOSTON PRIVATE FINANCIAL HOLDINGS, INC.

Regional Loan Data ^14

Unaudited ($ in thousands)

4Q20 3Q20 2Q20 1Q20 4Q19

New England $ 3,593,925 $ 3,669,746 $ 3,781,603 $ 3,724,959 $ 3,776,747

Northern 1,776,682 1,763,556 1,741,255 1,618,668 1,532,786 California

Southern 1,733,702 1,789,267 1,810,096 1,699,711 1,667,171 California

Total loans $ 7,104,309 $ 7,222,569 $ 7,332,954 $ 7,043,338 $ 6,976,704



Loans(charged-off) /recovered,net:

New England $ 162 $ (111 ) $ 7 $ 15 $ 414

Northern (147 ) - 3 122 (10 ) California

Southern (329 ) (93 ) (1,501 ) (485 ) (113 ) California

Total netloans $ (314 ) $ (204 ) $ (1,491 ) $ (348 ) $ 291 (charged-off)/recovered



Specialmention loans:

New England $ 94,235 $ 103,060 $ 83,026 $ 61,741 $ 21,691

Northern 64,361 63,192 75,609 5,947 5,227 California

Southern 28,641 33,257 33,247 24,935 25,108 California

Total special $ 187,237 $ 199,509 $ 191,882 $ 92,623 $ 52,026 mention loans



Accruingclassified loans:

New England $ 89,582 $ 74,682 $ 53,124 $ 50,483 $ 20,428

Northern 340 4,589 21,712 24,843 24,946 California

Southern 16,961 2,556 13,750 12,622 12,548 California

Totalaccruing $ 106,883 $ 81,827 $ 88,586 $ 87,948 $ 57,922 classifiedloans



Nonaccruing loans:

New England $ 12,643 $ 11,807 $ 11,630 $ 11,965 $ 9,764

Northern 6,331 25,133 9,459 6,575 319 California

Southern 4,877 4,323 4,515 5,774 6,020 California

Totalnonaccruing $ 23,851 $ 41,263 $ 25,604 $ 24,314 $ 16,103 loans



^14 The concentration of the Private Banking loan data and credit quality isprimarily based on the location of the lenders' regional offices.

BOSTON PRIVATE FINANCIAL HOLDINGS, INC.

Reconciliations of Non-GAAP Financial Measures

Unaudited ($ in thousands, except share and per share data)

4Q20

3Q20

2Q20

1Q20

4Q19

ROACE AND ROATCE:

Net income/(loss) attributable to the Company (GAAP) (A)

$

24,971

$

22,680

$

(3,298)

$

800

$

21,244

ADD: Amortization of intangibles, net of tax

447

564

555

565

534

Tangible common net income/(loss) (non-GAAP) (B)

$

25,418

$

23,244

$

(2,743)

$

1,365

$

21,778

Total average shareholders' equity (C)

$

861,138

$

842,606

$

834,882

$

838,935

$

818,816

LESS: Average goodwill and intangibles, net

(66,253)

(66,246)

(66,877)

(67,586)

(68,031)

Average tangible common equity (non-GAAP) (D)

$

794,885

$

776,360

$

768,005

$

771,349

$

750,785

ROACE (annualized) (A/C)

11.50

%

10.68

%

(1.58)

%

0.39

%

10.29

%

ROATCE (annualized) (B/D)

12.69

%

11.88

%

(1.43)

%

0.72

%

11.51

%

PRE-TAX, PRE-PROVISION INCOME:

Income/(loss) before income taxes (GAAP)

$

31,095

$

24,501

$

(2,457)

$

908

$

28,129

ADD BACK: Provision/(credit) for loan losses

(2,999)

(4,569)

22,604

16,962

(3,668)

Pre-tax, pre-provision income (non-GAAP)

$

28,096

$

19,932

$

20,147

$

17,870

$

24,461

TANGIBLE COMMON EQUITY:

Total shareholders' equity (GAAP)

$

868,008

$

846,169

$

825,205

$

828,792

$

819,018

LESS: Goodwill and intangibles, net

(66,663)

(66,505)

(66,542)

(67,244)

(67,959)

Tangible common equity (non-GAAP) (A)

$

801,345

$

779,664

$

758,663

$

761,548

$

751,059

Total assets (GAAP)

$

10,048,733

$

9,431,305

$

9,158,906

$

8,746,326

$

8,830,501

LESS: Goodwill and intangibles, net

(66,663)

(66,505)

(66,542)

(67,244)

(67,959)

Tangible assets (non-GAAP) (B)

$

9,982,070

$

9,364,800

$

9,092,364

$

8,679,082

$

8,762,542

End of period shares outstanding (C)

82,334,257

82,254,594

82,058,483

81,800,486

83,265,674

Tangible common equity/ Tangible assets (non-GAAP) (A/B)

8.03

%

8.33

%

8.34

%

8.77

%

8.57

%

Tangible book value per share (non-GAAP) (A/C)

$9.73

$9.48

$9.25

$9.31

$9.02

AVERAGE LOANS:

Total loans

$

7,189,236

$

7,282,598

$

7,288,644

$

7,033,733

$

7,072,710

LESS: PPP

348,827

373,047

283,619

-

-

Total loans, excluding PPP (non-GAAP)

$

6,840,409

$

6,909,551

$

7,005,025

$

7,033,733

$

7,072,710

Total loan yields, excluding PPP (non-GAAP)

3.26

%

3.27

%

3.47

%

3.75

%

3.83

%

BOSTON PRIVATE FINANCIAL HOLDINGS, INC.

Reconciliationsof Non-GAAP FinancialMeasures

Unaudited ($ in thousands,except share and per share data)

4Q20 3Q20 2Q20 1Q20 4Q19

ROACE AND ROATCE:

Net income/(loss)attributable to $ 24,971 $ 22,680 $ (3,298) $ 800 $ 21,244the Company(GAAP) (A)

ADD:Amortization of 447 564 555 565 534intangibles,net of tax

Tangible commonnet income/ $ 25,418 $ 23,244 $ (2,743) $ 1,365 $ 21,778(loss)(non-GAAP) (B)



Total averageshareholders' $ 861,138 $ 842,606 $ 834,882 $ 838,935 $ 818,816equity (C)

LESS: Averagegoodwill and (66,253) (66,246) (66,877) (67,586) (68,031)intangibles,net

Averagetangible common $ 794,885 $ 776,360 $ 768,005 $ 771,349 $ 750,785equity(non-GAAP) (D)



ROACE(annualized) (A 11.50 % 10.68 % (1.58) % 0.39 % 10.29 %/C)

ROATCE(annualized) (B 12.69 % 11.88 % (1.43) % 0.72 % 11.51 %/D)





PRE-TAX,PRE-PROVISION INCOME:

Income/(loss)before income $ 31,095 $ 24,501 $ (2,457) $ 908 $ 28,129taxes (GAAP)

ADD BACK:Provision/ (2,999) (4,569) 22,604 16,962 (3,668)(credit) forloan losses

Pre-tax,pre-provision $ 28,096 $ 19,932 $ 20,147 $ 17,870 $ 24,461income(non-GAAP)





TANGIBLE COMMON EQUITY:

Totalshareholders' $ 868,008 $ 846,169 $ 825,205 $ 828,792 $ 819,018equity (GAAP)

LESS: Goodwilland (66,663) (66,505) (66,542) (67,244) (67,959)intangibles,net

Tangible commonequity $ 801,345 $ 779,664 $ 758,663 $ 761,548 $ 751,059(non-GAAP) (A)



Total assets $ 10,048,733 $ 9,431,305 $ 9,158,906 $ 8,746,326 $ 8,830,501(GAAP)

LESS: Goodwilland (66,663) (66,505) (66,542) (67,244) (67,959)intangibles,net

Tangible assets $ 9,982,070 $ 9,364,800 $ 9,092,364 $ 8,679,082 $ 8,762,542(non-GAAP) (B)



End of periodshares 82,334,257 82,254,594 82,058,483 81,800,486 83,265,674outstanding (C)



Tangible commonequity/Tangible assets 8.03 % 8.33 % 8.34 % 8.77 % 8.57 %(non-GAAP) (A/B)

Tangible bookvalue per share $9.73 $9.48 $9.25 $9.31 $9.02(non-GAAP) (A/C)



AVERAGE LOANS:

Total loans $ 7,189,236 $ 7,282,598 $ 7,288,644 $ 7,033,733 $ 7,072,710

LESS: PPP 348,827 373,047 283,619 - -

Total loans,excluding PPP $ 6,840,409 $ 6,909,551 $ 7,005,025 $ 7,033,733 $ 7,072,710(non-GAAP)



Total loanyields, 3.26 % 3.27 % 3.47 % 3.75 % 3.83 %excluding PPP(non-GAAP)





BOSTON PRIVATE FINANCIAL HOLDINGS, INC.

Reconciliations of Non-GAAP Financial Measures

Unaudited ($ in thousands, except share and per share data)

4Q20

3Q20

2Q20

1Q20

4Q19

RETURN ON AVERAGE ASSETS:

Net income/(loss) attributable to the Company (GAAP) (A)

$

24,971

$

22,680

$

(3,298)

$

800

$

21,244

Average assets (non-GAAP) (B)

9,896,691

9,346,563

9,109,201

8,779,391

8,738,750

Return on average assets (annualized) (non-GAAP) (A/B)

1.00

%

0.96

%

(0.15)

%

0.04

%

0.96

%

EFFICIENCY RATIO:

Total noninterest expense (GAAP) (A)

$

57,967

$

60,937

$

61,453

$

60,908

$

58,457

LESS: Amortization of intangibles

566

714

702

715

676

Total noninterest expense, excluding Amortization of intangibles (non-GAAP) (B)

$

57,401

$

60,223

$

60,751

$

60,193

$

57,781

Net interest income (GAAP)

$

59,407

$

57,824

$

58,938

$

57,257

$

56,125

Total core fees and income (GAAP)

25,211

21,959

21,630

22,886

24,755

Total other income (GAAP)

1,445

1,086

1,032

(1,365)

2,038

Total revenue (GAAP) (C)

$

86,063

$

80,869

$

81,600

$

78,778

$

82,918

Efficiency ratio (GAAP) (A/C)

67.4

%

75.4

%

75.3

%

77.3

%

70.5

%

Efficiency ratio, excluding Amortization of intangibles (non-GAAP) (B/C)

66.7

%

74.5

%

74.4

%

76.4

%

69.7

%

NET INCOME/(LOSS) ATTRIBUTABLE TO THE COMPANY:

Net income/(loss) attributable to the Company (GAAP)

$

24,971

$

22,680

$

(3,298)

$

800

$

21,244

LESS: Gain on fair value of contingent considerations receivable 15

-

891

-

-

1,109

Tax effect at statutory rate

-

258

-

-

322

Net income/(loss) attributable to the Company (non-GAAP)

$

24,971

$

22,047

$

(3,298)

$

800

$

20,457

NET INCOME/(LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS:

Net income/(loss) attributable to common shareholders (GAAP)

$

24,971

$

22,680

$

(3,298)

$

1,214

$

21,342

LESS: Gain on fair value of contingent considerations receivable 15

-

891

-

-

1,109

Tax effect at statutory rate

-

258

-

-

322

Net income/(loss) attributable to the common shareholders, treasury stock method, excluding notable items (non-GAAP)

$

24,971

$

22,047

$

(3,298)

$

1,214

$

20,555

Weighted average diluted shares outstanding

82,764,339

82,362,338

81,929,752

83,318,041

83,637,786

Diluted earnings/(loss) per share (GAAP)

$

0.30

$

0.28

$

(0.04)

$

0.01

$

0.26

Diluted earnings/(loss) per share, excluding notable items (non-GAAP)

$

0.30

$

0.27

$

(0.04)

$

0.01

$

0.25

Average common equity (non-GAAP)

$

861,138

$

842,606

$

834,882

$

838,935

$

818,816

Average tangible common equity (non-GAAP)

$

794,885

$

776,360

$

768,005

$

771,349

$

750,785

ROACE, excluding notable items (non-GAAP)

11.50

%

10.38

%

(1.58)

%

0.39

%

9.91

%

ROATCE, excluding notable items (non-GAAP)

12.69

%

11.55

%

(1.43)

%

0.72

%

11.09

%

Pre-tax, pre-provision income (non-GAAP)

$

28,096

$

19,932

$

20,147

$

17,870

$

24,461

LESS: Gain on fair value of contingent considerations receivable 15

-

891

-

-

1,109

Pre-tax, pre-provision income, excluding notable items (non-GAAP)

$

28,096

$

19,041

$

20,147

$

17,870

$

23,352

15 In the third quarter of 2020 and fourth quarter of 2019, there was a gain of $0.9 million and $1.1 million, respectively, related to the revaluation of a receivable from the divestiture of former affiliate, Bingham, Osborn & Scarborough, LLC ("BOS").

BOSTON PRIVATE FINANCIAL HOLDINGS, INC.

Reconciliationsof Non-GAAP FinancialMeasures

Unaudited ($ in thousands,except share and per share data)

4Q20 3Q20 2Q20 1Q20 4Q19

RETURN ON AVERAGE ASSETS:

Net income/(loss)attributable to $ 24,971 $ 22,680 $ (3,298) $ 800 $ 21,244the Company(GAAP) (A)

Average assets 9,896,691 9,346,563 9,109,201 8,779,391 8,738,750(non-GAAP) (B)

Return onaverage assets(annualized) 1.00 % 0.96 % (0.15) % 0.04 % 0.96 %(non-GAAP) (A/B)



EFFICIENCY RATIO:

Totalnoninterest $ 57,967 $ 60,937 $ 61,453 $ 60,908 $ 58,457expense (GAAP)(A)

LESS:Amortization of 566 714 702 715 676intangibles

Totalnoninterestexpense,excluding $ 57,401 $ 60,223 $ 60,751 $ 60,193 $ 57,781Amortization ofintangibles(non-GAAP) (B)



Net interest $ 59,407 $ 57,824 $ 58,938 $ 57,257 $ 56,125income (GAAP)

Total core feesand income 25,211 21,959 21,630 22,886 24,755(GAAP)

Total other 1,445 1,086 1,032 (1,365) 2,038income (GAAP)

Total revenue $ 86,063 $ 80,869 $ 81,600 $ 78,778 $ 82,918(GAAP) (C)



Efficiencyratio (GAAP) (A 67.4 % 75.4 % 75.3 % 77.3 % 70.5 %/C)

Efficiencyratio,excludingAmortization of 66.7 % 74.5 % 74.4 % 76.4 % 69.7 %intangibles(non-GAAP) (B/C)



NET INCOME/(LOSS) ATTRIBUTABLE TOTHE COMPANY:

Net income/(loss)attributable to $ 24,971 $ 22,680 $ (3,298) $ 800 $ 21,244the Company(GAAP)

LESS: Gain onfair value ofcontingent - 891 - - 1,109considerationsreceivable ^15

Tax effect at - 258 - - 322statutory rate

Net income/(loss)attributable to $ 24,971 $ 22,047 $ (3,298) $ 800 $ 20,457the Company(non-GAAP)



NET INCOME/(LOSS)ATTRIBUTABLE TO COMMONSHAREHOLDERS:

Net income/(loss)attributable to $ 24,971 $ 22,680 $ (3,298) $ 1,214 $ 21,342commonshareholders(GAAP)

LESS: Gain onfair value ofcontingent - 891 - - 1,109considerationsreceivable ^15

Tax effect at - 258 - - 322statutory rate

Net income/(loss)attributable tothe commonshareholders, $ 24,971 $ 22,047 $ (3,298) $ 1,214 $ 20,555treasury stockmethod,excludingnotable items(non-GAAP)



Weightedaverage diluted 82,764,339 82,362,338 81,929,752 83,318,041 83,637,786 sharesoutstanding

Dilutedearnings/(loss) $ 0.30 $ 0.28 $ (0.04) $ 0.01 $ 0.26per share(GAAP)

Dilutedearnings/(loss)per share, $ 0.30 $ 0.27 $ (0.04) $ 0.01 $ 0.25excludingnotable items(non-GAAP)



Average commonequity $ 861,138 $ 842,606 $ 834,882 $ 838,935 $ 818,816(non-GAAP)

Averagetangible common $ 794,885 $ 776,360 $ 768,005 $ 771,349 $ 750,785equity(non-GAAP)

ROACE,excluding 11.50 % 10.38 % (1.58) % 0.39 % 9.91 %notable items(non-GAAP)

ROATCE,excluding 12.69 % 11.55 % (1.43) % 0.72 % 11.09 %notable items(non-GAAP)



Pre-tax,pre-provision $ 28,096 $ 19,932 $ 20,147 $ 17,870 $ 24,461income(non-GAAP)

LESS: Gain onfair value ofcontingent - 891 - - 1,109considerationsreceivable ^15

Pre-tax,pre-provisionincome, $ 28,096 $ 19,041 $ 20,147 $ 17,870 $ 23,352excludingnotable items(non-GAAP)



^15 In the third quarterof 2020 and fourth quarterof 2019, there was a gainof $0.9 million and $1.1million, respectively,related to the revaluationof a receivable from thedivestiture of formeraffiliate, Bingham, Osborn& Scarborough, LLC("BOS").

BOSTON PRIVATE FINANCIAL HOLDINGS, INC.

Reconciliations of Non-GAAP measures: Operating Adjustments

Unaudited ($ in thousands, except share and per share data)

Three Months Ended

Year Ended

December 31, 2020

December 31, 2020

GAAP orReportedValue

NotableItems

OperatingBasis(Non-GAAP)

GAAP orReportedValue

NotableItems

OperatingBasis(Non-GAAP)

Total revenue

$

86,063

$

-

$

86,063

$

327,310

$

(891)

$

326,419

Total noninterest expense

57,967

-

57,967

241,265

-

241,265

Pre-tax, pre-provision income

28,096

-

28,096

86,045

(891)

85,154

Income before income taxes

31,095

-

31,095

54,047

(891)

53,156

Income tax (expense)/benefit

6,124

-

6,124

8,888

(258)

8,630

Net income attributable to the Company

$

24,971

$

-

$

24,971

$

45,153

$

(633)

$

44,520

Net income attributable to common shareholders

$

24,971

$

-

$

24,971

$

45,567

$

(633)

$

44,934

Weighted average diluted shares outstanding

82,764,339

82,764,339

82,764,339

82,757,785

82,757,785

82,757,785

Diluted earnings per share

$

0.30

$

-

$

0.30

$

0.55

$

(0.01)

$

0.54

Average common equity

861,138

861,138

846,292

846,292

ROACE

11.50

%

11.50

%

5.34

%

5.26

%

Average tangible common equity

794,885

794,885

779,555

779,555

ROATCE

12.69

%

12.69

%

6.07

%

5.98

%

Effective tax rate

19.7

%

19.7

%

16.4

%

16.2

%

View source version on businesswire.com: https://www.businesswire.com/news/home/20210121005898/en/

CONTACT: Adam Bromley (617) 912-4386 abromley@bostonprivate.com