Business Wire | Oct 21, 2020 04:17PM EDT

Boston Private Reports Third Quarter 2020 Results

Oct. 21, 2020

BOSTON--(BUSINESS WIRE)--Oct. 21, 2020--Boston Private Financial Holdings, Inc. (NASDAQ: BPFH) (the "Company" or "BPFH") today reported third quarter 2020 Net income attributable to the Company of $22.7 million, compared to Net loss attributable to the Company of $(3.3) million for the second quarter of 2020 and Net income attributable to the Company of $20.0 million for the third quarter of 2019. Third quarter 2020 Diluted earnings per share were $0.28, compared to Diluted loss per share of $(0.04) in the second quarter of 2020 and Diluted earnings per share of $0.24 in the third quarter of 2019.

"We are proud of the dedication and commitment shown by the Boston Private employees guiding our clients through this challenging environment," said Anthony DeChellis, CEO of Boston Private. "This quarter's financial results include a provision credit and continued strong new business in our Wealth Management & Trust business. We strengthened our capital and liquidity position to provide flexibility as we navigate the uncertain environment. We remain committed to our strategic objectives and believe that we are well positioned for long-term success."

Summary Financial Results

% Change

($ in millions, except for per share 3Q20 2Q20 3Q19 LQ Y/Ydata)

Net income/(loss) - GAAP $22.7 $(3.3) $20.0 nm 14%

Net income/(loss) - Operating 22.0 (3.3) 20.0 nm 10%

Diluted earnings/(loss) per share - GAAP $0.28 $ $0.24 nm 17% (0.04)

Diluted earnings/(loss) per share - $0.27 $ $0.24 nm 13%Operating (0.04)



Non-GAAP Financial Measures:

Pre-tax, pre-provision income $19.9 $20.1 $25.7 (1) (23) % %

Return on average common equity ("ROACE") 10.7% (1.6)% 9.8 %

Return on average tangible common equity 11.9% (1.4)% 11.0 % ("ROATCE")

nm = not meaningful

The Company's financial results improved linked quarter primarily driven by a lower loan loss provision, which changed from a $25.4 million provision expense during the second quarter of 2020 to a $2.8 million provision credit during the third quarter of 2020. The company's operating results exclude the after-tax effect of a $0.9 million gain related to the revaluation of a receivable from the divestiture of BOS.

Net Interest Income and Margin

% Change

($ in millions) 3Q20 2Q20 3Q19 LQ Y/Y

Net interest income $57.8 $58.9 $56.2 (2)% 3%

Net interest margin 2.61% 2.75% 2.72%

Net interest income for the third quarter of 2020 was $57.8 million, a 2% decrease linked quarter and a 3% increase year-over-year. The linked quarter decrease was primarily driven by lower loan volumes, lower interest-earning asset yields, and prepayment penalties in the second quarter of 2020, partially offset by lower funding costs.

Net interest margin decreased 14 basis points on a linked quarter basis to 2.61%. The decline was primarily driven by lower asset yields, prepayment penalties in the second quarter of 2020 and excess cash balances, partially offset by lower funding costs.

Noninterest Income

% Change

($ in millions) 3Q20 2Q20 3Q19 LQ Y/Y

Wealth management and trust fees $18.2 $17.3 $19.1 6 % (4) %

Investment management fees 1.4 1.8 2.5 (21) % (44) %

Private banking fees ^1 2.3 2.6 3.6 (11) % (35) %

Total core fees and income $22.0 $21.6 $25.2 2 % (13) %

Total other income 1.1 1.0 - 5 % nm

Total noninterest income $23.0 $22.7 $25.1 2 % (8) %

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 third quarter of 2020 was $22.0 million, a 2% increase linked quarter. The linked quarter increase was primarily driven by higher Wealth management and trust fees, partially offset by lower Investment management fees. Total other income for the third quarter of 2020 includes a $0.9 million gain related to the revaluation of a receivable from the divestiture of BOS.

Assets Under Management / Advisory

% Change

($ in millions) 3Q20 2Q20 3Q19 LQ Y/Y

Wealth Management and Trust $15,581 $14,889 $14,695 5 % 6 %

Other ^3 672 1,067 1,533 (37) % (56) %

Total assets under management / $16,253 $15,956 $16,228 2 % - %advisory





Net flows

Wealth Management and Trust $(12) $60 $(100)

Other^ 3 (395) (100) (37)

Total net flows $(407) $(40) $(137)

^3 Includes results from DGHM

Total assets under management / advisory were $16.3 billion at the end of the third quarter of 2020, a 2% increase linked quarter. The linked quarter increase was primarily driven by the impact of favorable market action, partially offset by outflows at DGHM.

Total net flows were negative $407 million during the third quarter of 2020, driven by net outflows of $395 million at DGHM. The Wealth Management and Trust segment had net flows of negative $12 million during the third quarter of 2020. Negative flows in the Wealth Management and Trust segment were primarily the result of client assets that transferred from fixed income products into bank deposit products and tax payments made during the quarter. Overall client attrition was low, while new business at Wealth Management & Trust improved linked quarter to $299 million for the third quarter of 2020 compared to $251 million for the second quarter of 2020.

Noninterest Expense

% Change

($ in millions) 3Q20 2Q20 3Q19 LQ Y/Y

Salaries and employee benefits $34.7 $33.9 $31.7 2 % 9 %

Occupancy and equipment 8.2 7.6 8.3 8 % (1) %

Information systems 7.1 7.1 5.2 - % 37 %

Professional services 4.0 3.4 4.4 17 % (9) %

Marketing and business development 0.9 2.3 1.4 (60) % (33) %

Amortization of intangibles 0.7 0.7 0.7 2 % 6 %

FDIC insurance 1.0 0.8 0.1 nm nm

Other 4.4 5.6 3.9 (22) % 14 %

Total noninterest expense $60.9 $61.5 $55.5 (1) % 10 %



Memo: Excluding Off-Balance Sheet Provision

Reserve for unfunded loan commitments $1.8 $2.8 - (38) % nm

Total noninterest expense (non-GAAP) $59.2 $58.6 $55.5 1 % 7 %

Total noninterest expense for the third quarter of 2020 was $60.9 million, which includes $1.8 million of reserve for unfunded loan commitments recognized in Other expense.

Excluding the reserve for unfunded loan commitments, total noninterest expense (non-GAAP) for the third quarter of 2020 was $59.2 million, an increase of 1% linked quarter and an increase of 7% year-over-year. The linked quarter increase was driven primarily by higher compensation expense, while the year-over-year increase was driven primarily by higher compensation expense and higher Information systems expense from technology initiatives placed in service.

Income Tax Expense

The Company's effective tax rate for the third quarter of 2020 was 7.4% as a result of lower pre-tax income during 2020.

Loans - QTD Averages & Yields

% Change

($ in millions) 3Q20 2Q20 3Q19 LQ Y/Y

Commercial and industrial $1,033 $1,037 $1,102 - % (6) %

Paycheck Protection Program 373 284 - 32 % nm("PPP")

Commercial real estate 2,653 2,659 2,518 - % 5 %

Construction and land 218 233 196 (6) % 11 %

Residential 2,810 2,863 3,016 (2) % (7) %

Home equity 84 88 89 (5) % (5) %

Other consumer 112 124 128 (10) % (13) %

Total loans $7,283 $7,289 $7,049 - % 3 %

Total loans, excluding PPP $6,910 $7,005 $7,049 (1) % (2) %(non-GAAP)



Total loan yields 3.23% 3.42% 3.98%

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

* Within Commercial and industrial loans, lower revolving line of credit usage was partially offset by Commercial tax-exempt loan growth of 3% * Nearly all of the PPP loans remain outstanding * The linked quarter decline in Residential loans was driven by the sale of $72 million of Residential loans

Deposits - QTD Averages & Costs

% Change

($ in millions) 3Q20 2Q20 3Q19 LQ Y/Y

Non-interest bearing deposits 2,321 2,214 1,953 5 % 19 %

Interest bearing deposits 5,378 5,036 4,705 7 % 14 %

Total deposits $7,700 $7,250 $6,658 6 % 16 %



Cost of total deposits 0.33% 0.41% 0.92%

Cost of total interest-bearing deposits 0.48% 0.59% 1.31%

Average total deposits in the third quarter of 2020 increased 6% linked quarter and 16% year-over-year to $7.7 billion. The linked quarter increase was driven by a combination of existing and new client balances, client asset flows from the Wealth Management & Trust segment into deposit products, and an increase in wealth sweep deposits.

Provision and Asset Quality



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

Provision and Allowance

Provision/(credit) for loan losses $(4.6) $22.6 $17.0 $(3.7) $0.2

Reserve for unfunded loan 1.8 2.8 1.8 - -commitments

Total Provision for credit losses $(2.8) $25.4 $18.8 $(3.7) $0.2

Allowance for loan losses as a % 1.17% 1.22% 0.97% 1.03% 1.07%of Total loans



Asset Quality

Total net loans (charged-off)/ (0.2) (1.5) (0.3) 0.3 0.1recovered

Total nonaccrual loans 41.3 25.6 24.3 16.1 17.6

Nonaccrual loans as a % of Total 0.57% 0.35% 0.35% 0.23% 0.25%loans



Special mention loans (criticized $199.5 $191.9 $92.6 $52.0 $58.1loans)

Classified loans 123.1 114.2 112.3 74.0 80.8

Total criticized and classified $322.6 $306.1 $204.9 $126.1 $139.0loans

The Company recorded a provision credit of $2.8 million during the third quarter of 2020. The provision release was primarily driven by an improved economic forecast related to the current expected credit losses methodology and resulted in lower reserves on residential mortgages and construction and land loans. The allowance for loan losses as a percentage of total loans, excluding PPP loans (non-GAAP), was 1.23% in the third quarter of 2020, compared to 1.28% in the second quarter of 2020.

Total nonaccrual loans as of September 30, 2020 was $41.3 million, an increase of $15.7 million, or 61%, linked quarter primarily driven by the downgrade of a commercial & industrial relationship in Northern California.

Total criticized and classified loans as of September 30, 2020 was $322.6 million, an increase of $16.5 million, or 5%, linked quarter primarily driven by the downgrade of $71 million of loans, partially offset by $54 million of payoffs, paydowns and upgrades. Of the $71 million in downgrades in the third quarter of 2020, $62 million were Commercial real estate loans across 16 relationships, primarily with hospitality and retail clients.

As of September 30, 2020:

* Residential loans on deferral totaled approximately $100 million, or 3.6% of total residential loans, compared to a peak of approximately $220 million in the second quarter of 2020 * Commercial & industrial loans on deferral totaled approximately $50 million, or 4.7% of total Commercial & 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 $78 million

Capital



3Q20 2Q20 1Q20 4Q19 3Q19

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

Tangible book value per share (non-GAAP) $9.48 $9.25 $9.31 $9.02 $8.90



Regulatory Capital Ratios: ^3

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

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

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

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

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

The Company's tangible book value per share increased to $9.48 in the third quarter of 2020, a 7% increase year-over-year. Risk-weighted regulatory capital ratios increased slightly linked quarter.

Dividend Payments

Concurrent with the release of third 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 November 6, 2020, and the payment date is November 20, 2020.

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; 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; net income/(loss) attributable to the common shareholders, treasury stock method, excluding notable items; diluted earnings/(loss) per share excluding notable items; and average 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.

Conference Call

Management will hold a conference call at 8:00 a.m. Eastern Time on Thursday, October 22, 2020, to discuss the financial results, business highlights and outlook. To access the call:

Dial In #: (888) 317-6003 Elite Entry Number: 0457772

Replay Information:

Available from October 22, 2020 at 12 noon Eastern Time until October 29, 2020 Dial In #: (877) 344-7529 Conference Number: 10149141

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

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 Statements

Certain statements in this press release that are not historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties. These statements include, among others, statements regarding our strategy; evaluations of 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; 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)

3Q20 2Q20 1Q20 4Q19 3Q19

ASSETS:

Cash and cash $ 546,263 $ 179,027 $ 61,714 $ 292,479 $ 78,010equivalents

Investmentsecurities 1,011,327 1,002,970 993,166 978,284 935,538available-for-sale

Investmentsecurities 38,600 42,495 45,395 48,212 51,379held-to-maturity

Equity securities 32,818 24,492 23,080 18,810 21,780at fair value

Stock in FederalHome Loan Bank and 36,618 42,407 45,273 39,078 47,756Federal ReserveBank

Loans held for 15,074 9,786 7,671 7,386 6,658sale

Loans 7,222,569 7,332,954 7,043,338 6,976,704 7,067,151

Less: Allowance 84,551 89,324 68,211 71,982 75,359for loan losses

Loans, net ofallowance for loan 7,138,018 7,243,630 6,975,127 6,904,722 6,991,792losses

Premises and 42,907 43,805 43,544 44,527 42,658equipment, net

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

Intangible assets, 8,898 8,935 9,637 10,352 10,622net

Accrued interest 25,935 24,918 24,054 24,175 24,851receivable

Deferred income 8,250 9,116 5,630 11,383 15,704taxes, net

Right-of-use 94,879 94,143 98,896 102,075 107,045assets

Other assets 374,111 375,575 355,532 291,411 299,544

TOTAL ASSETS $ 9,431,305 $ 9,158,906 $ 8,746,326 $ 8,830,501 $ 8,690,944



LIABILITIES:

Deposits $ 7,827,719 $ 7,427,397 $ 6,835,572 $ 7,241,476 $ 6,658,242

Securities soldunder agreements 42,544 46,623 45,319 53,398 48,860to repurchase

Federal funds - - 145,000 - 230,000purchased

Federal Home Loan 296,236 426,313 491,254 350,829 570,904Bank borrowings

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

Lease liabilities 108,932 108,234 113,574 117,214 122,799

Other liabilities 203,342 218,771 180,452 140,820 143,607

TOTAL LIABILITIES 8,585,136 8,333,701 7,917,534 8,010,100 7,880,775



REDEEMABLENONCONTROLLING - - - 1,383 1,481INTERESTS ("RNCI")

SHAREHOLDERS' EQUITY:

Common stock,$1.00 par value; 82,255 82,058 81,800 83,266 83,242authorized:170,000,000 shares

Additional paid-in 597,113 594,463 593,167 600,708 599,877capital

Retained earnings 136,394 118,647 131,761 127,469 116,210

Accumulated othercomprehensive 30,407 30,037 22,064 7,575 9,359income

TOTALSHAREHOLDERS' 846,169 825,205 828,792 819,018 808,688EQUITY

TOTAL LIABILITIES,RNCI, AND $ 9,431,305 $ 9,158,906 $ 8,746,326 $ 8,830,501 $ 8,690,944SHAREHOLDERS'EQUITY



BOSTON PRIVATE FINANCIAL HOLDINGS, INC.

Consolidated Income Statements

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

3Q20

2Q20

1Q20

4Q19

3Q19

REVENUE:

Interest income

$

65,453

$

68,819

$

73,082

$

75,291

$

77,604

Interest expense

7,629

9,881

15,825

19,166

21,451

Net interest income

57,824

58,938

57,257

56,125

56,153

Provision/(credit) for loan losses 4

(4,569

)

22,604

16,962

(3,668

)

167

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

62,393

36,334

40,295

59,793

55,986

Wealth management and trust fees 5

18,240

17,261

18,371

18,720

19,067

Investment management fees

1,393

1,770

1,925

2,554

2,496

Private banking fee income

1,320

2,395

2,490

2,924

2,658

Gain on sale of loans, net

1,006

204

100

557

934

Total core fees and income

21,959

21,630

22,886

24,755

25,155

Total other income

1,086

1,032

(1,365

)

2,038

(29

)

TOTAL REVENUE 6

80,869

81,600

78,778

82,918

81,279

NONINTEREST EXPENSE:

Salaries and employee benefits

34,671

33,937

35,096

34,186

31,684

Occupancy and equipment

8,150

7,560

7,646

7,578

8,260

Information systems

7,096

7,113

6,725

6,476

5,169

Professional services

4,025

3,446

3,601

3,920

4,435

Marketing and business development

935

2,313

1,890

2,017

1,403

Amortization of intangibles

714

702

715

676

671

FDIC insurance

960

767

-

(19

)

59

Other 4

4,386

5,615

5,235

3,623

3,856

TOTAL NONINTEREST EXPENSE

60,937

61,453

60,908

58,457

55,537

INCOME/(LOSS) BEFORE INCOME TAXES

24,501

(2,457

)

908

28,129

25,575

Income tax expense

1,821

841

102

6,788

5,517

Net income/(loss) before attribution to noncontrolling interests

22,680

(3,298

)

806

21,341

20,058

Less: Net income attributable to noncontrolling interests

-

-

6

97

96

NET INCOME/(LOSS) ATTRIBUTABLE TO THE COMPANY

$

22,680

$

(3,298

)

$

800

$

21,244

$

19,962

Adjustments, treasury stock method 7

-

-

414

98

304

NET INCOME/(LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS

$

22,680

$

(3,298

)

$

1,214

$

21,342

$

20,266

COMMON SHARE DATA:

Weighted average basic shares outstanding

82,221,705

81,929,752

83,005,064

83,238,982

83,631,403

Weighted average diluted shares outstanding 8

82,362,338

81,929,752

83,318,041

83,637,786

83,956,708

Diluted earnings/(loss) per share

$

0.28

$

(0.04

)

$

0.01

$

0.26

$

0.24

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/(loss) attributable to the Company to arrive at Net income/(loss) attributable to common shareholders, treasury stock method, as presented in these tables, include decrease/(increase) in Noncontrolling interests redemption value.

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 sharedata)

3Q20 2Q20 1Q20 4Q19 3Q19

REVENUE:

Interest $ 65,453 $ 68,819 $ 73,082 $ 75,291 $ 77,604 income

Interest 7,629 9,881 15,825 19,166 21,451 expense

Net interest 57,824 58,938 57,257 56,125 56,153 income

Provision/(credit) for (4,569 ) 22,604 16,962 (3,668 ) 167 loan losses ^4

Net interestincome afterprovision/ 62,393 36,334 40,295 59,793 55,986 (credit) forloan losses



Wealthmanagement and 18,240 17,261 18,371 18,720 19,067 trust fees ^5

Investmentmanagement 1,393 1,770 1,925 2,554 2,496 fees

Privatebanking fee 1,320 2,395 2,490 2,924 2,658 income

Gain on sale 1,006 204 100 557 934 of loans, net

Total corefees and 21,959 21,630 22,886 24,755 25,155 income

Total other 1,086 1,032 (1,365 ) 2,038 (29 )income

TOTAL REVENUE 80,869 81,600 78,778 82,918 81,279 ^6



NONINTEREST EXPENSE:

Salaries andemployee 34,671 33,937 35,096 34,186 31,684 benefits

Occupancy and 8,150 7,560 7,646 7,578 8,260 equipment

Information 7,096 7,113 6,725 6,476 5,169 systems

Professional 4,025 3,446 3,601 3,920 4,435 services

Marketing andbusiness 935 2,313 1,890 2,017 1,403 development

Amortization 714 702 715 676 671 of intangibles

FDIC insurance 960 767 - (19 ) 59

Other ^4 4,386 5,615 5,235 3,623 3,856

TOTALNONINTEREST 60,937 61,453 60,908 58,457 55,537 EXPENSE



INCOME/(LOSS)BEFORE INCOME 24,501 (2,457 ) 908 28,129 25,575 TAXES

Income tax 1,821 841 102 6,788 5,517 expense

Net income/(loss) beforeattribution to 22,680 (3,298 ) 806 21,341 20,058 noncontrollinginterests

Less: Netincomeattributable - - 6 97 96 tononcontrollinginterests

NET INCOME/(LOSS) $ 22,680 $ (3,298 ) $ 800 $ 21,244 $ 19,962 ATTRIBUTABLETO THE COMPANY



Adjustments,treasury stock - - 414 98 304 method ^7

NET INCOME/(LOSS)ATTRIBUTABLE $ 22,680 $ (3,298 ) $ 1,214 $ 21,342 $ 20,266 TO COMMONSHAREHOLDERS



COMMON SHARE DATA:

Weightedaverage basic 82,221,705 81,929,752 83,005,064 83,238,982 83,631,403 sharesoutstanding

Weightedaverage 82,362,338 81,929,752 83,318,041 83,637,786 83,956,708 diluted sharesoutstanding ^8

Dilutedearnings/ $ 0.28 $ (0.04 ) $ 0.01 $ 0.26 $ 0.24 (loss) pershare



^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/(loss) attributable to the Company to arrive atNet income/(loss) attributable to common shareholders, treasury stock method,as presented in these tables, include decrease/(increase) in Noncontrollinginterests redemption value.



^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)

Nine months ended September 30,

2020

2019

REVENUE:

Interest income

$

207,354

$

233,156

Interest expense

33,335

61,205

Net interest income

174,019

171,951

Provision/(credit) for loan losses 4

34,997

104

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

139,022

171,847

Wealth management and trust fees 5

53,872

57,037

Investment management fees

5,088

7,601

Private banking fee income

6,205

8,024

Gain on sale of loans, net

1,310

1,065

Total core fees and income

66,475

73,727

Total other income

753

1,027

TOTAL REVENUE 6

241,247

246,705

NONINTEREST EXPENSE:

Salaries and employee benefits

103,704

100,116

Occupancy and equipment

23,356

24,460

Information systems

20,934

16,166

Professional services

11,072

11,308

Marketing and business development

5,138

4,422

Amortization of intangibles

2,131

2,015

FDIC insurance

1,727

1,304

Restructuring

-

1,646

Other 4

15,236

10,312

TOTAL NONINTEREST EXPENSE

183,298

171,749

INCOME BEFORE INCOME TAXES

22,952

74,852

Income tax expense

2,764

15,803

Net income before attribution to noncontrolling interests

20,188

59,049

Less: Net income attributable to noncontrolling interests

6

265

NET INCOME ATTRIBUTABLE TO THE COMPANY

$

20,182

$

58,784

Adjustments, treasury stock method 7

414

1,045

NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS

$

20,596

$

59,829

COMMON SHARE DATA

Weighted average basic shares outstanding

82,382,050

83,495,361

Weighted average diluted shares outstanding 8

82,746,866

84,003,281

Diluted earnings per share

$

0.25

$

0.71

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 decrease/(increase) in Noncontrolling interests redemption value.

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)

Nine months ended September 30,

2020 2019

REVENUE:

Interest income $ 207,354 $ 233,156

Interest expense 33,335 61,205

Net interest income 174,019 171,951

Provision/(credit) for loan losses ^4 34,997 104

Net interest income after provision/(credit) for 139,022 171,847 loan losses



Wealth management and trust fees ^5 53,872 57,037

Investment management fees 5,088 7,601

Private banking fee income 6,205 8,024

Gain on sale of loans, net 1,310 1,065

Total core fees and income 66,475 73,727

Total other income 753 1,027

TOTAL REVENUE ^6 241,247 246,705



NONINTEREST EXPENSE:

Salaries and employee benefits 103,704 100,116

Occupancy and equipment 23,356 24,460

Information systems 20,934 16,166

Professional services 11,072 11,308

Marketing and business development 5,138 4,422

Amortization of intangibles 2,131 2,015

FDIC insurance 1,727 1,304

Restructuring - 1,646

Other ^4 15,236 10,312

TOTAL NONINTEREST EXPENSE 183,298 171,749



INCOME BEFORE INCOME TAXES 22,952 74,852

Income tax expense 2,764 15,803

Net income before attribution to noncontrolling 20,188 59,049 interests

Less: Net income attributable to noncontrolling 6 265 interests

NET INCOME ATTRIBUTABLE TO THE COMPANY $ 20,182 $ 58,784



Adjustments, treasury stock method ^7 414 1,045

NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS $ 20,596 $ 59,829



COMMON SHARE DATA

Weighted average basic shares outstanding 82,382,050 83,495,361

Weighted average diluted shares outstanding ^8 82,746,866 84,003,281

Diluted earnings per share $ 0.25 $ 0.71



^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 decrease/(increase) in Noncontrolling interestsredemption value.



^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)

3Q20

2Q20

1Q20

4Q19

3Q19

KEY STATISTICS:

Return on average assets (non-GAAP) 9

0.96

%

(0.15

)%

0.04

%

0.96

%

0.91

%

ROACE (non-GAAP) 9

10.68

%

(1.58

)%

0.39

%

10.29

%

9.80

%

ROATCE (non-GAAP) 9

11.88

%

(1.43

)%

0.72

%

11.51

%

10.99

%

Efficiency ratio (non-GAAP) 9

74.5

%

74.4

%

76.4

%

69.7

%

67.5

%

Noninterest income to total revenue

28.5

%

27.8

%

27.3

%

32.3

%

30.9

%

Net interest margin

2.61

%

2.75

%

2.76

%

2.70

%

2.72

%

Average loan to average deposit ratio

94.6

%

100.5

%

99.0

%

101.6

%

105.9

%

Cost of total deposits

0.33

%

0.41

%

0.72

%

0.86

%

0.92

%

Cost of interest-bearing deposits

0.48

%

0.59

%

1.02

%

1.20

%

1.31

%

Cost of total funding

0.37

%

0.50

%

0.83

%

0.99

%

1.12

%

Allowance for loan losses / Total loans

1.17

%

1.22

%

0.97

%

1.03

%

1.07

%

Nonperforming loans / Total loans

0.57

%

0.35

%

0.35

%

0.23

%

0.25

%

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

(0.01

)%

(0.08

)%

(0.02

)%

0.02

%

0.01

%

CAPITAL HIGHLIGHTS:

Tier 1 common equity 3

$

752,492

$

731,316

$

742,044

$

745,926

$

732,980

Tier 1 capital 3

$

852,514

$

831,338

$

842,066

$

846,337

$

833,431

Total capital 3

$

935,824

$

913,936

$

914,572

$

919,573

$

910,076

Risk-weighted assets ("RWA") 3

$

6,654,690

$

6,593,957

$

6,627,339

$

6,530,804

$

6,533,884

Average assets for leverage 3

$

9,237,940

$

9,009,565

$

8,691,254

$

8,659,944

$

8,588,358

Tier 1 common equity ratio 3

11.31

%

11.09

%

11.20

%

11.42

%

11.22

%

Tier 1 risk-based capital ratio 3

12.81

%

12.61

%

12.71

%

12.96

%

12.76

%

Total risk-based capital ratio 3

14.06

%

13.86

%

13.80

%

14.08

%

13.93

%

Tier 1 leverage capital ratio 3

9.23

%

9.23

%

9.69

%

9.77

%

9.70

%

Total equity / Total assets

8.97

%

9.01

%

9.48

%

9.27

%

9.30

%

Tangible common equity / Tangible assets (non-GAAP)

8.33

%

8.34

%

8.77

%

8.57

%

8.59

%

End of period market price per share

$

5.52

$

6.88

$

7.15

$

12.03

$

11.66

End of period shares outstanding

82,254,594

82,058,483

81,800,486

83,265,674

83,241,952

Book value per common share

$

10.29

$

10.06

$

10.13

$

9.84

$

9.71

Tangible book value per share (non-GAAP)

$

9.48

$

9.25

$

9.31

$

9.02

$

8.90

Common Equity Repurchase Program:

Total shares of common stock repurchased

-

-

1,565,060

-

678,165

Average price paid per share of common stock

$

-

$

-

$

8.18

$

-

$

10.61

Aggregate repurchases of common stock ($ in millions)

$

-

$

-

$

12.8

$

-

$

7.2

3 Current quarter information is presented based on estimated data.

9 Annualized.

BOSTON PRIVATE FINANCIAL HOLDINGS, INC.

Consolidated Financial Highlights

Unaudited ($ inthousands, except share andper share data)

3Q20 2Q20 1Q20 4Q19 3Q19

KEY STATISTICS:

Return on )average assets 0.96 % (0.15 % 0.04 % 0.96 % 0.91 %(non-GAAP) ^9

ROACE (non-GAAP) 10.68 % (1.58 ) 0.39 % 10.29 % 9.80 %^ 9 %

ROATCE 11.88 % (1.43 ) 0.72 % 11.51 % 10.99 %(non-GAAP) ^9 %

Efficiency ratio 74.5 % 74.4 % 76.4 % 69.7 % 67.5 %(non-GAAP)^ 9

Noninterestincome to total 28.5 % 27.8 % 27.3 % 32.3 % 30.9 %revenue



Net interest 2.61 % 2.75 % 2.76 % 2.70 % 2.72 %margin

Average loan toaverage deposit 94.6 % 100.5 % 99.0 % 101.6 % 105.9 %ratio

Cost of total 0.33 % 0.41 % 0.72 % 0.86 % 0.92 %deposits

Cost ofinterest-bearing 0.48 % 0.59 % 1.02 % 1.20 % 1.31 %deposits

Cost of total 0.37 % 0.50 % 0.83 % 0.99 % 1.12 %funding



Allowance forloan losses / 1.17 % 1.22 % 0.97 % 1.03 % 1.07 %Total loans

Nonperformingloans / Total 0.57 % 0.35 % 0.35 % 0.23 % 0.25 %loans

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



CAPITAL HIGHLIGHTS:

Tier 1 common $ 752,492 $ 731,316 $ 742,044 $ 745,926 $ 732,980 equity ^3

Tier 1 capital ^ $ 852,514 $ 831,338 $ 842,066 $ 846,337 $ 833,431 3

Total capital ^3 $ 935,824 $ 913,936 $ 914,572 $ 919,573 $ 910,076



Risk-weightedassets ("RWA") ^ $ 6,654,690 $ 6,593,957 $ 6,627,339 $ 6,530,804 $ 6,533,884 3

Average assets $ 9,237,940 $ 9,009,565 $ 8,691,254 $ 8,659,944 $ 8,588,358 for leverage ^3



Tier 1 common 11.31 % 11.09 % 11.20 % 11.42 % 11.22 %equity ratio ^3

Tier 1risk-based 12.81 % 12.61 % 12.71 % 12.96 % 12.76 %capital ratio ^3

Total risk-based 14.06 % 13.86 % 13.80 % 14.08 % 13.93 %capital ratio ^3

Tier 1 leverage 9.23 % 9.23 % 9.69 % 9.77 % 9.70 %capital ratio ^3



Total equity / 8.97 % 9.01 % 9.48 % 9.27 % 9.30 %Total assets

Tangible commonequity / 8.33 % 8.34 % 8.77 % 8.57 % 8.59 %Tangible assets(non-GAAP)



End of periodmarket price per $ 5.52 $ 6.88 $ 7.15 $ 12.03 $ 11.66 share

End of periodshares 82,254,594 82,058,483 81,800,486 83,265,674 83,241,952 outstanding

Book value per $ 10.29 $ 10.06 $ 10.13 $ 9.84 $ 9.71 common share

Tangible bookvalue per share $ 9.48 $ 9.25 $ 9.31 $ 9.02 $ 8.90 (non-GAAP)



Common EquityRepurchase Program:

Total shares ofcommon stock - - 1,565,060 - 678,165 repurchased

Average pricepaid per share $ - $ - $ 8.18 $ - $ 10.61 of common stock

Aggregaterepurchases of $ - $ - $ 12.8 $ - $ 7.2 common stock ($in millions)



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

^9 Annualized.

BOSTON PRIVATE FINANCIAL HOLDINGS, INC.

Consolidated AUM and Balance Sheet - End of Period Balances

Unaudited ($ in thousands)

3Q20

2Q20

1Q20

4Q19

3Q19

ASSETS UNDER MANAGEMENT AND ADVISORY ("AUM"):

Wealth Management and Trust

$

15,581,000

$

14,889,000

$

13,497,000

$

15,224,000

$

14,695,000

Other 2

672,000

1,067,000

1,016,000

1,544,000

1,533,000

TOTAL AUM

$

16,253,000

$

15,956,000

$

14,513,000

$

16,768,000

$

16,228,000

AUM Rollforward:

Beginning balance

$

15,956,000

$

14,513,000

$

16,768,000

$

16,228,000

$

16,199,000

Net flows

(407,000

)

(40,000

)

150,000

(209,000

)

(137,000

)

Market returns

704,000

1,483,000

(2,405,000

)

749,000

166,000

Ending balance

$

16,253,000

$

15,956,000

$

14,513,000

$

16,768,000

$

16,228,000

AUM Net Flows:

Wealth Management and Trust

$

(12,000

)

$

60,000

$

176,000

$

(114,000

)

$

(100,000

)

Other 2

(395,000

)

(100,000

)

(26,000

)

(95,000

)

(37,000

)

TOTAL NET FLOWS

$

(407,000

)

$

(40,000

)

$

150,000

$

(209,000

)

$

(137,000

)

DEPOSITS:

Demand deposits (non-interest bearing)

$

2,346,126

$

2,293,864

$

2,020,440

$

1,971,013

$

1,947,363

Savings and NOW

756,797

758,656

653,006

646,199

666,107

Money market

4,187,657

3,753,228

3,468,701

3,969,330

3,366,623

Certificates of deposit

537,139

621,649

693,425

654,934

678,149

TOTAL DEPOSITS

$

7,827,719

$

7,427,397

$

6,835,572

$

7,241,476

$

6,658,242

LOANS:

Commercial and industrial

$

583,145

$

565,748

$

670,744

$

694,034

$

695,029

Paycheck Protection Program

371,496

370,034

-

-

-

Commercial tax-exempt

472,342

419,264

445,319

447,927

448,488

Commercial real estate

2,659,890

2,676,708

2,626,299

2,551,274

2,533,346

Construction and land

211,697

240,211

238,293

225,983

209,741

Residential

2,729,164

2,859,627

2,841,926

2,839,155

2,964,042

Home equity

81,797

84,588

89,350

83,657

84,432

Consumer

113,038

116,774

131,407

134,674

132,073

TOTAL LOANS

$

7,222,569

$

7,332,954

$

7,043,338

$

6,976,704

$

7,067,151

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)

3Q20 2Q20 1Q20 4Q19 3Q19

ASSETS UNDERMANAGEMENT AND ADVISORY("AUM"):

WealthManagement $ 15,581,000 $ 14,889,000 $ 13,497,000 $ 15,224,000 $ 14,695,000 and Trust

Other ^2 672,000 1,067,000 1,016,000 1,544,000 1,533,000

TOTAL AUM $ 16,253,000 $ 15,956,000 $ 14,513,000 $ 16,768,000 $ 16,228,000



AUM Rollforward:

Beginning $ 15,956,000 $ 14,513,000 $ 16,768,000 $ 16,228,000 $ 16,199,000 balance

Net flows (407,000 ) (40,000 ) 150,000 (209,000 ) (137,000 )

Market 704,000 1,483,000 (2,405,000 ) 749,000 166,000 returns

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



AUM Net Flows:

WealthManagement $ (12,000 ) $ 60,000 $ 176,000 $ (114,000 ) $ (100,000 )and Trust

Other ^2 (395,000 ) (100,000 ) (26,000 ) (95,000 ) (37,000 )

TOTAL NET $ (407,000 ) $ (40,000 ) $ 150,000 $ (209,000 ) $ (137,000 )FLOWS



DEPOSITS:

Demanddeposits $ 2,346,126 $ 2,293,864 $ 2,020,440 $ 1,971,013 $ 1,947,363 (non-interestbearing)

Savings and 756,797 758,656 653,006 646,199 666,107 NOW

Money market 4,187,657 3,753,228 3,468,701 3,969,330 3,366,623

Certificates 537,139 621,649 693,425 654,934 678,149 of deposit

TOTAL $ 7,827,719 $ 7,427,397 $ 6,835,572 $ 7,241,476 $ 6,658,242 DEPOSITS



LOANS:

Commercialand $ 583,145 $ 565,748 $ 670,744 $ 694,034 $ 695,029 industrial

PaycheckProtection 371,496 370,034 - - - Program

Commercial 472,342 419,264 445,319 447,927 448,488 tax-exempt

Commercial 2,659,890 2,676,708 2,626,299 2,551,274 2,533,346 real estate

Construction 211,697 240,211 238,293 225,983 209,741 and land

Residential 2,729,164 2,859,627 2,841,926 2,839,155 2,964,042

Home equity 81,797 84,588 89,350 83,657 84,432

Consumer 113,038 116,774 131,407 134,674 132,073

TOTAL LOANS $ 7,222,569 $ 7,332,954 $ 7,043,338 $ 6,976,704 $ 7,067,151



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

BOSTON PRIVATE FINANCIAL HOLDINGS, INC.

Provision and Asset Quality

Unaudited ($ in thousands)

3Q20

2Q20

1Q20

4Q19

3Q19

PROVISION:

Provision/(credit) for loan losses

$

(4,569

)

$

22,604

$

16,962

$

(3,668

)

$

167

Reserve for unfunded loan commitments 4

1,750

2,829

1,827

(23

)

(23

)

Total Provision/(credit) for credit losses

$

(2,819

)

$

25,433

$

18,789

$

(3,691

)

$

144

CHARGE-OFFS:

Loan charge-offs

$

(245

)

$

(1,546

)

$

(528

)

$

(285

)

$

(185

)

Loan recoveries

41

55

180

576

310

NET (CHARGE-OFFS)/RECOVERIES

$

(204

)

$

(1,491

)

$

(348

)

$

291

$

125

Net charge-offs to average loans (annualized)

(0.01

)%

(0.08

)%

(0.02

)%

0.02

%

0.01

%

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

Commercial and industrial

$

(136

)

$

(337

)

$

(473

)

$

118

$

95

Commercial real estate

-

-

-

183

27

Home equity

-

(1,157

)

132

4

6

Consumer

(68

)

3

(7

)

(14

)

(3

)

NET (CHARGE-OFFS)/RECOVERIES

$

(204

)

$

(1,491

)

$

(348

)

$

291

$

125

LOAN QUALITY DATA:

Special mention loans

$

199,509

$

191,882

$

92,623

$

52,026

$

58,133

Accruing classified loans 10

81,827

88,586

87,948

57,922

63,278

Nonaccrual loans

41,263

25,604

24,314

16,103

17,565

Total classified

123,090

114,190

112,262

74,025

80,843

Criticized and classified loans

$

322,599

$

306,072

$

204,885

$

126,051

$

138,976

Loans 30-89 days past due and accruing 11

$

5,635

$

5,535

$

14,852

$

25,945

$

4,179

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.

BOSTON PRIVATE FINANCIAL HOLDINGS, INC.

Provision and Asset Quality

Unaudited ($ in thousands)

3Q20 2Q20 1Q20 4Q19 3Q19

PROVISION:

Provision/(credit) for $ (4,569 ) $ 22,604 $ 16,962 $ (3,668 ) $ 167 loan losses

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

TotalProvision/ $ (2,819 ) $ 25,433 $ 18,789 $ (3,691 ) $ 144 (credit) forcredit losses



CHARGE-OFFS:

Loan $ (245 ) $ (1,546 ) $ (528 ) $ (285 ) $ (185 )charge-offs

Loan 41 55 180 576 310 recoveries

NET(CHARGE-OFFS) $ (204 ) $ (1,491 ) $ (348 ) $ 291 $ 125 /RECOVERIES

Netcharge-offs ) ) )to average (0.01 % (0.08 % (0.02 % 0.02 % 0.01 %loans(annualized)



Net(Charge-offs) /Recoveriesby Loan Type:

Commercialand $ (136 ) $ (337 ) $ (473 ) $ 118 $ 95 industrial

Commercial - - - 183 27 real estate

Home equity - (1,157 ) 132 4 6

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

NET(CHARGE-OFFS) $ (204 ) $ (1,491 ) $ (348 ) $ 291 $ 125 /RECOVERIES



LOAN QUALITY DATA:

Special $ 199,509 $ 191,882 $ 92,623 $ 52,026 $ 58,133 mention loans



Accruingclassified 81,827 88,586 87,948 57,922 63,278 loans ^10

Nonaccrual 41,263 25,604 24,314 16,103 17,565 loans

Total 123,090 114,190 112,262 74,025 80,843 classified

Criticizedand $ 322,599 $ 306,072 $ 204,885 $ 126,051 $ 138,976 classifiedloans



Loans 30-89days past due $ 5,635 $ 5,535 $ 14,852 $ 25,945 $ 4,179 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

3Q20

2Q20

3Q19

3Q20

2Q20

3Q19

3Q20

2Q20

3Q19

INTEREST-EARNING ASSETS

Cash and investments:

Taxable investment securities

$

201,515

$

198,337

$

198,655

$

853

$

859

$

938

1.69

%

1.73

%

1.95

%

Non-taxable investment securities

313,130

316,513

305,108

1,974

2,005

1,924

2.52

%

2.53

%

2.52

%

Mortgage-backed securities

515,813

505,669

492,514

2,354

2,566

2,622

1.83

%

2.03

%

2.13

%

Short-term investments and other

432,117

186,895

101,958

654

582

1,084

0.59

%

1.23

%

4.06

%

Total cash and investments

1,462,575

1,207,414

1,098,235

5,835

6,012

6,568

1.59

%

1.99

%

2.39

%

Loans:12

Commercial and industrial

1,032,816

1,037,285

1,101,672

8,314

9,708

11,523

3.15

%

3.70

%

4.09

%

Paycheck Protection Program

373,047

283,619

-

2,390

1,573

-

2.51

%

2.19

%

-

%

Commercial real estate

2,652,770

2,659,074

2,518,048

23,546

24,602

29,118

3.47

%

3.66

%

4.52

%

Construction and land

218,211

233,305

195,843

2,109

2,251

2,410

3.78

%

3.82

%

4.82

%

Residential

2,809,871

2,862,708

3,016,265

22,089

23,079

25,567

3.14

%

3.22

%

3.39

%

Home equity

84,226

88,307

89,068

623

650

1,121

2.94

%

2.96

%

4.99

%

Other consumer

111,657

124,346

127,987

547

944

1,297

1.95

%

3.05

%

4.02

%

Total loans

7,282,598

7,288,644

7,048,883

59,618

62,807

71,036

3.23

%

3.42

%

3.98

%

Total earning assets

8,745,173

8,496,058

8,147,118

65,453

68,819

77,604

2.96

%

3.22

%

3.76

%

LESS: Allowance for loan losses

89,370

68,473

75,199

Cash and due from banks

34,761

39,959

49,065

Other assets

655,999

641,657

544,368

TOTAL AVERAGE ASSETS

$

9,346,563

$

9,109,201

$

8,665,352

INTEREST-BEARING LIABILITIES

Interest-bearing deposits:13

Savings and NOW

$

722,742

$

680,758

$

615,730

$

197

$

187

$

275

0.11

%

0.11

%

0.18

%

Money market

4,070,026

3,684,147

3,378,006

4,790

4,848

11,523

0.47

%

0.53

%

1.35

%

Certificates of deposit

585,729

671,470

711,299

1,447

2,300

3,689

0.98

%

1.38

%

2.06

%

Total interest-bearing deposits13

5,378,497

5,036,375

4,705,035

6,434

7,335

15,487

0.48

%

0.59

%

1.31

%

Junior subordinated debentures

106,363

106,363

106,363

508

764

1,022

1.87

%

2.84

%

3.76

%

FHLB borrowings and other

388,412

610,856

833,535

687

1,782

4,942

0.69

%

1.15

%

2.32

%

Total interest-bearing liabilities13

5,873,272

5,753,594

5,644,933

7,629

9,881

21,451

0.52

%

0.69

%

1.50

%

Non-interest bearing demand deposits 13

2,321,223

2,213,829

1,953,214

Payables and other liabilities

309,462

306,896

258,371

Total average liabilities

8,503,957

8,274,319

7,856,518

Redeemable noncontrolling interests

-

-

944

Average shareholders' equity

842,606

834,882

807,890

TOTAL AVERAGE LIABILITIES, RNCI, AND SHAREHOLDERS' EQUITY

$

9,346,563

$

9,109,201

$

8,665,352

Net interest income

$

57,824

$

58,938

$

56,153

Interest rate spread

2.44

%

2.53

%

2.26

%

Net interest margin

2.61

%

2.75

%

2.72

%

Average total deposits 13

$

7,699,720

$

7,250,204

$

6,658,249

0.33

%

0.41

%

0.92

%

Average total deposits and borrowings 13

$

8,194,495

$

7,967,423

$

7,598,147

0.37

%

0.50

%

1.12

%

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

3Q20 2Q20 3Q19 3Q20 2Q20 3Q19 3Q20 2Q20 3Q19

INTEREST-EARNING ASSETS

Cash and investments:

Taxableinvestment $ 201,515 $ 198,337 $ 198,655 $ 853 $ 859 $ 938 1.69 % 1.73 % 1.95 %securities

Non-taxableinvestment 313,130 316,513 305,108 1,974 2,005 1,924 2.52 % 2.53 % 2.52 %securities

Mortgage-backed 515,813 505,669 492,514 2,354 2,566 2,622 1.83 % 2.03 % 2.13 %securities

Short-terminvestments and 432,117 186,895 101,958 654 582 1,084 0.59 % 1.23 % 4.06 %other

Total cash and 1,462,575 1,207,414 1,098,235 5,835 6,012 6,568 1.59 % 1.99 % 2.39 %investments

Loans: ^12

Commercial and 1,032,816 1,037,285 1,101,672 8,314 9,708 11,523 3.15 % 3.70 % 4.09 %industrial

PaycheckProtection 373,047 283,619 - 2,390 1,573 - 2.51 % 2.19 % - %Program

Commercial real 2,652,770 2,659,074 2,518,048 23,546 24,602 29,118 3.47 % 3.66 % 4.52 %estate

Construction and 218,211 233,305 195,843 2,109 2,251 2,410 3.78 % 3.82 % 4.82 %land

Residential 2,809,871 2,862,708 3,016,265 22,089 23,079 25,567 3.14 % 3.22 % 3.39 %

Home equity 84,226 88,307 89,068 623 650 1,121 2.94 % 2.96 % 4.99 %

Other consumer 111,657 124,346 127,987 547 944 1,297 1.95 % 3.05 % 4.02 %

Total loans 7,282,598 7,288,644 7,048,883 59,618 62,807 71,036 3.23 % 3.42 % 3.98 %

Total earning 8,745,173 8,496,058 8,147,118 65,453 68,819 77,604 2.96 % 3.22 % 3.76 %assets



LESS: Allowance 89,370 68,473 75,199 for loan losses

Cash and due 34,761 39,959 49,065 from banks

Other assets 655,999 641,657 544,368

TOTAL AVERAGE $ 9,346,563 $ 9,109,201 $ 8,665,352 ASSETS



INTEREST-BEARING LIABILITIES

Interest-bearing deposits: ^13

Savings and NOW $ 722,742 $ 680,758 $ 615,730 $ 197 $ 187 $ 275 0.11 % 0.11 % 0.18 %

Money market 4,070,026 3,684,147 3,378,006 4,790 4,848 11,523 0.47 % 0.53 % 1.35 %

Certificates of 585,729 671,470 711,299 1,447 2,300 3,689 0.98 % 1.38 % 2.06 %deposit

Totalinterest-bearing 5,378,497 5,036,375 4,705,035 6,434 7,335 15,487 0.48 % 0.59 % 1.31 %deposits ^13

Juniorsubordinated 106,363 106,363 106,363 508 764 1,022 1.87 % 2.84 % 3.76 %debentures

FHLB borrowings 388,412 610,856 833,535 687 1,782 4,942 0.69 % 1.15 % 2.32 %and other

Totalinterest-bearing 5,873,272 5,753,594 5,644,933 7,629 9,881 21,451 0.52 % 0.69 % 1.50 %liabilities ^13



Non-interestbearing demand 2,321,223 2,213,829 1,953,214 deposits ^13

Payables andother 309,462 306,896 258,371 liabilities

Total average 8,503,957 8,274,319 7,856,518 liabilities

Redeemablenoncontrolling - - 944 interests

Averageshareholders' 842,606 834,882 807,890 equity

TOTAL AVERAGELIABILITIES,RNCI, AND $ 9,346,563 $ 9,109,201 $ 8,665,352 SHAREHOLDERS'EQUITY

Net interest $ 57,824 $ 58,938 $ 56,153 income

Interest rate 2.44 % 2.53 % 2.26 %spread

Net interest 2.61 % 2.75 % 2.72 %margin



Average total $ 7,699,720 $ 7,250,204 $ 6,658,249 0.33 % 0.41 % 0.92 %deposits ^13

Average totaldeposits and $ 8,194,495 $ 7,967,423 $ 7,598,147 0.37 % 0.50 % 1.12 %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

Nine Months Ended

Nine Months Ended

Nine Months Ended

INTEREST-EARNING ASSETS

9/30/20

9/30/19

9/30/20

9/30/19

9/30/20

9/30/19

Cash and investments:

Taxable investment securities

$

200,346

$

223,072

$

2,580

$

3,244

1.72

%

1.94

%

Non-taxable investment securities

315,101

305,422

5,977

5,726

2.53

%

2.50

%

Mortgage-backed securities

514,043

507,338

7,707

8,225

2.00

%

2.16

%

Short-term investments and other

256,143

104,225

2,307

3,049

1.19

%

3.78

%

Total cash and investments

1,285,633

1,140,057

18,571

20,244

1.92

%

2.36

%

Loans:12

Commercial and industrial

1,074,159

1,088,027

28,746

33,673

3.51

%

4.08

%

Paycheck Protection Program

218,175

-

3,963

-

2.41

%

-

%

Commercial real estate

2,631,461

2,474,804

75,630

87,222

3.78

%

4.65

%

Construction and land

228,243

203,211

6,932

7,610

3.99

%

4.94

%

Residential

2,841,023

2,999,480

68,636

76,847

3.22

%

3.42

%

Home equity

86,186

90,361

2,225

3,388

3.44

%

5.01

%

Other consumer

122,706

128,879

2,651

4,172

2.88

%

4.33

%

Total loans

7,201,953

6,984,762

188,783

212,912

3.46

%

4.04

%

Total earning assets

8,487,586

8,124,819

207,354

233,156

3.23

%

3.80

%

LESS: Allowance for loan losses

69,929

74,863

Cash and due from banks

41,461

46,906

Other assets

620,313

516,642

TOTAL AVERAGE ASSETS

$

9,079,431

$

8,613,504

INTEREST-BEARING LIABILITIES

Interest-bearing deposits:13

Savings and NOW

$

680,962

$

658,154

$

616

$

847

0.12

%

0.17

%

Money market

3,835,219

3,317,117

19,295

32,072

0.67

%

1.29

%

Certificates of deposit

641,800

746,453

6,654

11,141

1.38

%

2.00

%

Total interest-bearing deposits 13

5,157,981

4,721,724

26,565

44,060

0.69

%

1.25

%

Junior subordinated debentures

106,363

106,363

2,189

3,223

2.74

%

4.05

%

FHLB borrowings and other

484,674

801,519

4,581

13,922

1.24

%

2.29

%

Total interest-bearing liabilities 13

5,749,018

5,629,606

33,335

61,205

0.77

%

1.45

%

Non-interest bearing demand deposits 13

2,194,237

1,949,948

Payables and other liabilities

295,327

243,370

Total average liabilities

8,238,582

7,822,924

Redeemable noncontrolling interests

400

1,642

Average shareholders' equity

840,449

788,938

TOTAL AVERAGE LIABILITIES, RNCI, AND SHAREHOLDERS' EQUITY

$

9,079,431

$

8,613,504

Net interest income

$

174,019

$

171,951

Interest rate spread

2.46

%

2.35

%

Net interest margin

2.71

%

2.80

%

Average total deposits 13

$

7,352,218

$

6,671,672

0.48

%

0.88

%

Average total deposits and borrowings 13

$

7,943,255

$

7,579,554

0.56

%

1.08

%

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

Nine Months Ended Nine Months Ended Nine Months Ended

INTEREST-EARNING 9/30/20 9/30/19 9/30/20 9/30/19 9/30/ 9/30/ASSETS 20 19

Cash and investments:

Taxableinvestment $ 200,346 $ 223,072 $ 2,580 $ 3,244 1.72 % 1.94 %securities

Non-taxableinvestment 315,101 305,422 5,977 5,726 2.53 % 2.50 %securities

Mortgage-backed 514,043 507,338 7,707 8,225 2.00 % 2.16 %securities

Short-terminvestments and 256,143 104,225 2,307 3,049 1.19 % 3.78 %other

Total cash and 1,285,633 1,140,057 18,571 20,244 1.92 % 2.36 %investments

Loans: ^12

Commercial and 1,074,159 1,088,027 28,746 33,673 3.51 % 4.08 %industrial

PaycheckProtection 218,175 - 3,963 - 2.41 % - %Program

Commercial real 2,631,461 2,474,804 75,630 87,222 3.78 % 4.65 %estate

Construction and 228,243 203,211 6,932 7,610 3.99 % 4.94 %land

Residential 2,841,023 2,999,480 68,636 76,847 3.22 % 3.42 %

Home equity 86,186 90,361 2,225 3,388 3.44 % 5.01 %

Other consumer 122,706 128,879 2,651 4,172 2.88 % 4.33 %

Total loans 7,201,953 6,984,762 188,783 212,912 3.46 % 4.04 %

Total earning 8,487,586 8,124,819 207,354 233,156 3.23 % 3.80 %assets



LESS: Allowance 69,929 74,863 for loan losses

Cash and due 41,461 46,906 from banks

Other assets 620,313 516,642

TOTAL AVERAGE $ 9,079,431 $ 8,613,504 ASSETS



INTEREST-BEARING LIABILITIES

Interest-bearing deposits: ^13

Savings and NOW $ 680,962 $ 658,154 $ 616 $ 847 0.12 % 0.17 %

Money market 3,835,219 3,317,117 19,295 32,072 0.67 % 1.29 %

Certificates of 641,800 746,453 6,654 11,141 1.38 % 2.00 %deposit

Totalinterest-bearing 5,157,981 4,721,724 26,565 44,060 0.69 % 1.25 %deposits ^13

Juniorsubordinated 106,363 106,363 2,189 3,223 2.74 % 4.05 %debentures

FHLB borrowings 484,674 801,519 4,581 13,922 1.24 % 2.29 %and other

Totalinterest-bearing 5,749,018 5,629,606 33,335 61,205 0.77 % 1.45 %liabilities ^13



Non-interestbearing demand 2,194,237 1,949,948 deposits ^13

Payables andother 295,327 243,370 liabilities

Total average 8,238,582 7,822,924 liabilities

Redeemablenoncontrolling 400 1,642 interests

Averageshareholders' 840,449 788,938 equity

TOTAL AVERAGELIABILITIES,RNCI, AND $ 9,079,431 $ 8,613,504 SHAREHOLDERS'EQUITY

Net interest $ 174,019 $ 171,951 income

Interest rate 2.46 % 2.35 %spread

Net interest 2.71 % 2.80 %margin



Average total $ 7,352,218 $ 6,671,672 0.48 % 0.88 %deposits ^13

Average totaldeposits and $ 7,943,255 $ 7,579,554 0.56 % 1.08 %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

Unaudited ($ in thousands)

3Q20

2Q20

1Q20

4Q19

3Q19

New England

$

3,669,746

$

3,781,603

$

3,724,959

$

3,776,747

$

3,868,690

Northern California

1,763,556

1,741,255

1,618,668

1,532,786

1,559,569

Southern California

1,789,267

1,810,096

1,699,711

1,667,171

1,638,892

Total loans

$

7,222,569

$

7,332,954

$

7,043,338

$

6,976,704

$

7,067,151

Loans (charged-off)/recovered, net:

New England

$

(111

)

$

7

$

15

$

414

$

275

Northern California

-

3

122

(10

)

6

Southern California

(93

)

(1,501

)

(485

)

(113

)

(156

)

Total net loans (charged-off)/recovered

$

(204

)

$

(1,491

)

$

(348

)

$

291

$

125

Special mention loans:

New England

$

103,060

$

83,026

$

61,741

$

21,691

$

19,828

Northern California

63,192

75,609

5,947

5,227

4,821

Southern California

33,257

33,247

24,935

25,108

33,484

Total special mention loans

$

199,509

$

191,882

$

92,623

$

52,026

$

58,133

Accruing classified loans:

New England

$

74,682

$

53,124

$

50,483

$

20,428

$

21,830

Northern California

4,589

21,712

24,843

24,946

23,938

Southern California

2,556

13,750

12,622

12,548

17,510

Total accruing classified loans

$

81,827

$

88,586

$

87,948

$

57,922

$

63,278

Nonaccruing loans:

New England

$

11,807

$

11,630

$

11,965

$

9,764

$

8,999

Northern California

25,133

9,459

6,575

319

2,395

Southern California

4,323

4,515

5,774

6,020

6,171

Total nonaccruing loans

$

41,263

$

25,604

$

24,314

$

16,103

$

17,565

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

Unaudited ($ in thousands)

3Q20 2Q20 1Q20 4Q19 3Q19

New England $ 3,669,746 $ 3,781,603 $ 3,724,959 $ 3,776,747 $ 3,868,690

Northern 1,763,556 1,741,255 1,618,668 1,532,786 1,559,569 California

Southern 1,789,267 1,810,096 1,699,711 1,667,171 1,638,892 California

Total loans $ 7,222,569 $ 7,332,954 $ 7,043,338 $ 6,976,704 $ 7,067,151



Loans(charged-off) /recovered,net:

New England $ (111 ) $ 7 $ 15 $ 414 $ 275

Northern - 3 122 (10 ) 6 California

Southern (93 ) (1,501 ) (485 ) (113 ) (156 )California

Total netloans $ (204 ) $ (1,491 ) $ (348 ) $ 291 $ 125 (charged-off)/recovered



Specialmention loans:

New England $ 103,060 $ 83,026 $ 61,741 $ 21,691 $ 19,828

Northern 63,192 75,609 5,947 5,227 4,821 California

Southern 33,257 33,247 24,935 25,108 33,484 California

Total special $ 199,509 $ 191,882 $ 92,623 $ 52,026 $ 58,133 mention loans



Accruingclassified loans:

New England $ 74,682 $ 53,124 $ 50,483 $ 20,428 $ 21,830

Northern 4,589 21,712 24,843 24,946 23,938 California

Southern 2,556 13,750 12,622 12,548 17,510 California

Totalaccruing $ 81,827 $ 88,586 $ 87,948 $ 57,922 $ 63,278 classifiedloans



Nonaccruing loans:

New England $ 11,807 $ 11,630 $ 11,965 $ 9,764 $ 8,999

Northern 25,133 9,459 6,575 319 2,395 California

Southern 4,323 4,515 5,774 6,020 6,171 California

Totalnonaccruing $ 41,263 $ 25,604 $ 24,314 $ 16,103 $ 17,565 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)

3Q20

2Q20

1Q20

4Q19

3Q19

ROACE AND ROATCE:

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

$

22,680

$

(3,298

)

$

800

$

21,244

$

19,962

ADD: Amortization of intangibles, net of tax

564

555

565

534

530

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

$

23,244

$

(2,743

)

$

1,365

$

21,778

$

20,492

Total average shareholders' equity (C)

$

842,606

$

834,882

$

838,935

$

818,816

$

807,890

LESS: Average goodwill and intangibles, net

(66,246

)

(66,877

)

(67,586

)

(68,031

)

(68,359

)

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

$

776,360

$

768,005

$

771,349

$

750,785

$

739,531

ROACE (annualized) (A/C)

10.68

%

(1.58

)%

0.39

%

10.29

%

9.80

%

ROATCE (annualized) (B/D)

11.88

%

(1.43

)%

0.72

%

11.51

%

10.99

%

PRE-TAX, PRE-PROVISION INCOME:

Income/(loss) before income taxes (GAAP)

$

24,501

$

(2,457

)

$

908

$

28,129

$

25,575

ADD BACK: Provision/(credit) for loan losses

(4,569

)

22,604

16,962

(3,668

)

167

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

$

19,932

$

20,147

$

17,870

$

24,461

$

25,742

TANGIBLE COMMON EQUITY:

Total shareholders' equity (GAAP)

$

846,169

$

825,205

$

828,792

$

819,018

$

808,688

LESS: Goodwill and intangibles, net

(66,505

)

(66,542

)

(67,244

)

(67,959

)

(68,229

)

Tangible common equity (non-GAAP) (A)

$

779,664

$

758,663

$

761,548

$

751,059

$

740,459

Total assets (GAAP)

$

9,431,305

$

9,158,906

$

8,746,326

$

8,830,501

$

8,690,944

LESS: Goodwill and intangibles, net

(66,505

)

(66,542

)

(67,244

)

(67,959

)

(68,229

)

Tangible assets (non-GAAP) (B)

$

9,364,800

$

9,092,364

$

8,679,082

$

8,762,542

$

8,622,715

End of period shares outstanding (C)

82,254,594

82,058,483

81,800,486

83,265,674

83,241,952

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

8.33

%

8.34

%

8.77

%

8.57

%

8.59

%

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

$

9.48

$

9.25

$

9.31

$

9.02

$

8.90

AVERAGE LOANS:

Total loans

$

7,282,598

$

7,288,644

$

7,033,733

$

7,072,710

$

7,048,883

LESS: PPP

373,047

283,619

-

-

-

Total loans, excluding PPP (non-GAAP)

$

6,909,551

$

7,005,025

$

7,033,733

$

7,072,710

$

7,048,883

Total loan yields, excluding PPP (non-GAAP)

3.27

%

3.47

%

3.75

%

3.83

%

3.98

%

BOSTON PRIVATE FINANCIAL HOLDINGS, INC.

Reconciliations of Non-GAAP Financial Measures

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

3Q20 2Q20 1Q20 4Q19 3Q19

ROACE AND ROATCE:

Net income/(loss)attributable $ 22,680 $ (3,298 ) $ 800 $ 21,244 $ 19,962 to theCompany(GAAP) (A)

ADD:Amortizationof 564 555 565 534 530 intangibles,net of tax

Tangiblecommon netincome/(loss) $ 23,244 $ (2,743 ) $ 1,365 $ 21,778 $ 20,492 (non-GAAP)(B)



Total averageshareholders' $ 842,606 $ 834,882 $ 838,935 $ 818,816 $ 807,890 equity (C)

LESS: Averagegoodwill and (66,246 ) (66,877 ) (67,586 ) (68,031 ) (68,359 )intangibles,net

Averagetangiblecommon equity $ 776,360 $ 768,005 $ 771,349 $ 750,785 $ 739,531 (non-GAAP)(D)



ROACE )(annualized) 10.68 % (1.58 % 0.39 % 10.29 % 9.80 %(A/C)

ROATCE )(annualized) 11.88 % (1.43 % 0.72 % 11.51 % 10.99 %(B/D)





PRE-TAX,PRE-PROVISION INCOME:

Income/(loss)before income $ 24,501 $ (2,457 ) $ 908 $ 28,129 $ 25,575 taxes (GAAP)

ADD BACK:Provision/ (4,569 ) 22,604 16,962 (3,668 ) 167 (credit) forloan losses

Pre-tax,pre-provision $ 19,932 $ 20,147 $ 17,870 $ 24,461 $ 25,742 income(non-GAAP)





TANGIBLECOMMON EQUITY:

Totalshareholders' $ 846,169 $ 825,205 $ 828,792 $ 819,018 $ 808,688 equity (GAAP)

LESS:Goodwill and (66,505 ) (66,542 ) (67,244 ) (67,959 ) (68,229 )intangibles,net

Tangiblecommon equity $ 779,664 $ 758,663 $ 761,548 $ 751,059 $ 740,459 (non-GAAP)(A)



Total assets $ 9,431,305 $ 9,158,906 $ 8,746,326 $ 8,830,501 $ 8,690,944 (GAAP)

LESS:Goodwill and (66,505 ) (66,542 ) (67,244 ) (67,959 ) (68,229 )intangibles,net

Tangibleassets $ 9,364,800 $ 9,092,364 $ 8,679,082 $ 8,762,542 $ 8,622,715 (non-GAAP)(B)



End of periodshares 82,254,594 82,058,483 81,800,486 83,265,674 83,241,952 outstanding(C)



Tangiblecommon equity/ Tangible 8.33 % 8.34 % 8.77 % 8.57 % 8.59 %assets(non-GAAP) (A/B)

Tangible bookvalue pershare $ 9.48 $ 9.25 $ 9.31 $ 9.02 $ 8.90 (non-GAAP) (A/C)



AVERAGE LOANS:

Total loans $ 7,282,598 $ 7,288,644 $ 7,033,733 $ 7,072,710 $ 7,048,883

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

Total loans,excluding PPP $ 6,909,551 $ 7,005,025 $ 7,033,733 $ 7,072,710 $ 7,048,883 (non-GAAP)



Total loanyields, 3.27 % 3.47 % 3.75 % 3.83 % 3.98 %excluding PPP(non-GAAP)





BOSTON PRIVATE FINANCIAL HOLDINGS, INC.

Reconciliations of Non-GAAP Financial Measures

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

3Q20

2Q20

1Q20

4Q19

3Q19

RETURN ON AVERAGE ASSETS:

Net income/(loss) (GAAP) (A)

$

22,680

$

(3,298

)

$

800

$

21,244

$

19,962

Average assets (non-GAAP) (B)

9,346,563

9,109,201

8,779,391

8,738,750

8,665,352

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

0.96

%

(0.15

)%

0.04

%

0.96

%

0.91

%

EFFICIENCY RATIO:

Total noninterest expense (GAAP) (A)

$

60,937

$

61,453

$

60,908

$

58,457

$

55,537

LESS: Amortization of intangibles

714

702

715

676

671

Total noninterest expense (non-GAAP) (B)

$

60,223

$

60,751

$

60,193

$

57,781

$

54,866

Net interest income (GAAP)

$

57,824

$

58,938

$

57,257

$

56,125

$

56,153

Total core fees and income (GAAP)

21,959

21,630

22,886

24,755

25,155

Total other income (GAAP)

1,086

1,032

(1,365

)

2,038

(29

)

Total revenue (GAAP) (C)

$

80,869

$

81,600

$

78,778

$

82,918

$

81,279

Efficiency ratio (GAAP) (A/C)

75.4

%

75.3

%

77.3

%

70.5

%

68.3

%

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

74.5

%

74.4

%

76.4

%

69.7

%

67.5

%

NET INCOME/(LOSS) ATTRIBUTABLE TO THE COMPANY:

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

$

22,680

$

(3,298

)

$

800

$

21,244

$

19,962

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)

$

22,047

$

(3,298

)

$

800

$

20,457

$

19,962

NET INCOME/(LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS:

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

$

22,680

$

(3,298

)

$

1,214

$

21,342

$

20,266

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)

$

22,047

$

(3,298

)

$

1,214

$

20,555

$

20,266

Weighted average diluted shares outstanding

82,362,338

81,929,752

83,318,041

83,637,786

83,956,708

Diluted earnings/(loss) per share (GAAP)

$

0.28

$

(0.04

)

$

0.01

$

0.26

$

0.24

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

$

0.27

$

(0.04

)

$

0.01

$

0.25

$

0.24

Average common equity (non-GAAP)

$

842,606

$

834,882

$

838,935

$

818,816

$

807,890

Average tangible common equity (non-GAAP)

$

776,360

$

768,005

$

771,349

$

750,785

$

739,531

ROACE, excluding notable items (non-GAAP)

10.38

%

(1.58

)%

0.39

%

9.91

%

9.80

%

ROATCE, excluding notable items (non-GAAP)

11.55

%

(1.43

)%

0.72

%

11.09

%

10.99

%

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

$

19,932

$

20,147

$

17,870

$

24,461

$

25,742

LESS: Gain on fair value of contingent considerations receivable 15

891

-

-

1,109

-

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

$

19,041

$

20,147

$

17,870

$

23,352

$

25,742

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").

View source version on businesswire.com: https://www.businesswire.com/news/home/20201021005941/en/

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