Business Wire | Jul 28, 2020 04:16PM EDT

Boston Private Reports Second Quarter 2020 Results

Jul. 28, 2020

BOSTON--(BUSINESS WIRE)--Jul. 28, 2020--Boston Private Financial Holdings, Inc. (NASDAQ: BPFH) (the "Company" or "BPFH") today reported second quarter 2020 Net loss attributable to the Company of $(3.3) million, compared to Net income attributable to the Company of $0.8 million for the first quarter of 2020 and $19.4 million for the second quarter of 2019. Second quarter 2020 Diluted loss per share were $(0.04), compared to Diluted earnings per share of $0.01 in the first quarter of 2020 and $0.22 in the second quarter of 2019.

"I am proud of the way our employees continue to prioritize the health and financial well-being of our clients as we all navigated the challenging environment during the second quarter," said Anthony DeChellis, CEO of Boston Private. "This quarter's financial reflects continued reserve build related to the uncertain macroeconomic environment as a result of the pandemic. Our pre-tax, pre-provision income increased linked quarter, while our Wealth Management & Trust segment delivered net inflows for the second straight quarter.

"Our board declared a dividend of $0.06 per common share, compared to $0.12 in the prior quarter. This prudent action reflects our Company's conservative approach to liquidity and capital management as we adjust our dividend policy to reflect our current strategy."

Summary Financial Results - Reported

% Change

($ in millions, except for per share data) 2Q20 1Q20 2Q19 LQ Y/Y

Net income/(loss) $(3.3) $0.8 $19.4 nm nm

Diluted earnings/(loss) per share $ $0.01 $0.22 nm nm (0.04)



Non-GAAP Financial Measures:

Pre-tax, pre-provision income $20.1 $17.9 $26.2 13% (23) %

Return on average common equity ("ROACE") (1.6)% 0.4% 9.8%

Return on average tangible common equity (1.4)% 0.7% 11.1% ("ROATCE")

nm = not meaningful

The Company's reported financial results decreased linked quarter and year-over-year primarily as a result of the total provision for credit losses of $25.4 million in the second quarter of 2020. Pre-tax, pre-provision income increased 13% linked quarter primarily driven by higher other income and net interest income, partially offset by higher noninterest expense.

Net Interest Income and Margin

% Change

($ in millions) 2Q20 1Q20 2Q19 LQ Y/Y

Net interest income $58.9 $57.3 $57.5 3 % 3 %

Net interest margin 2.75% 2.76% 2.78%



Net interest income for the second quarter of 2020 was $58.9 million, a 3% increase linked quarter and a 3% increase year-over-year. The linked quarter increase was primarily driven by lower funding costs, PPP-related income and prepayment penalties, partially offset by lower interest income.

Net interest margin decreased 1 basis point on a linked quarter basis to 2.75%. Total cost of funds declined 33 basis points to 0.50% driven by lower deposit costs, while yields on interest earning assets declined 32 basis points to 3.22%.

Noninterest Income

% Change

($ in millions) 2Q20 1Q20 2Q19 LQ Y/Y

Wealth management and trust fees $17.3 $18.4 $18.9 (6)% (9)%

Investment management fees 1.8 1.9 2.5 (8)% (28)%

Private banking fees ^1 2.6 2.6 2.9 -% (11)%

Total core fees and income $21.6 $22.9 $24.3 (5)% (11)%

Total other income 1.0 (1.4) 0.1 nm nm

Total noninterest income $22.7 $21.5 $24.4 5 % (7)%

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

Total core fees and income for the second quarter of 2020 was $21.6 million, a 5% decrease linked quarter. The linked quarter decrease was primarily driven by lower Wealth management and trust fees, which declined as a result of lower equity market values at the end of the first quarter of 2020.

Assets Under Management / Advisory

% Change

($ in millions) 2Q20 1Q20 2Q19 LQ Y/Y

Wealth Management and Trust $14,889 $13,497 $14,649 10 % 2 %

Other ^2 1,067 1,016 1,550 5 % (31) %

Total assets under management / $15,956 $14,513 $16,199 10 % (2) %advisory

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

Total assets under management / advisory were $16.0 billion at the end of the second quarter of 2020, a 10% increase linked quarter. The linked quarter increase was primarily driven by the impact of favorable market action during the second quarter.

Total net flows were negative $40 million during the second quarter of 2020. The Wealth Management and Trust segment had net inflows of $60 million.

Noninterest Expense

% Change

($ in millions) 2Q20 1Q20 2Q19 LQ Y/Y

Salaries and employee benefits $33.9 $35.1 $32.7 (3) 4% %

Occupancy and equipment 7.6 7.6 7.9 (1) (4) % %

Information systems 7.1 6.7 5.1 6% 38%

Professional services 3.4 3.6 3.3 (4) 4% %

Marketing and business development 2.3 1.9 1.9 22% 20%

Amortization of intangibles 0.7 0.7 0.7 (2) 4% %

FDIC insurance 0.8 - 0.6 nm 31%

Other 5.6 5.2 3.5 7% 62%

Total noninterest expense $61.5 $60.9 $55.7 1 % 10 %



Memo: Excluding Off-Balance Sheet Provision

Provision expense for unfunded loan $2.8 $1.8 - 55% nmcommitments

Total noninterest expense (non-GAAP) $58.6 $59.1 $55.7 (1) 5 % %

Total noninterest expense for the second quarter of 2020 was $61.5 million, which includes $2.8 million of provision expense related to unfunded loan commitments recognized in Other expense.

Excluding the provision expense for unfunded loan commitments, total noninterest expense (non-GAAP) for the second quarter of 2020 was $58.6 million, a decrease of 1% linked quarter and an increase of 5% year-over-year. The linked quarter decrease was driven primarily by lower salaries and benefits expense, while the year-over-year increase was driven primarily by higher Information systems expense from technology initiatives placed in service.

Income Tax Expense

The Company's effective tax rate for the second quarter of 2020 was negative as a result of moderate positive income tax expense despite a pre-tax loss.

Loans - QTD Averages & Yields

% Change

($ in millions) 2Q20 1Q20 2Q19 LQ Y/Y

Commercial and industrial $1,037 $1,149 $1,092 (10)% (5)%

Paycheck Protection Program 284 - - nm nm("PPP")

Commercial real estate 2,659 2,582 2,507 3% 6%

Construction and land 233 233 203 -% 15%

Residential 2,863 2,851 3,009 -% (5)%

Home equity 88 86 91 3% (3)%

Other consumer 124 132 125 (6)% -%

Total loans $7,289 $7,034 $7,026 4 % 4 %

Total loans, excluding PPP $7,005 $7,034 $7,026 - % - %(non-GAAP)



Total loan yields 3.42 % 3.75 % 4.07 % (0.33) (0.65) % %

* Average total loans in the second quarter of 2020 increased 4% year-over-year reflecting the addition of $283.6 million of PPP loans in the second quarter of 2020. * Average total loans, excluding PPP (non-GAAP) in the second quarter of 2020 were flat linked quarter and year-over-year. * Linked quarter, Commercial and industrial loans declined 10% primarily driven by the payoff of large loans and lower line usage. * Linked quarter, Commercial real estate loans increased 3% primarily driven by increased loan balances attributable to the debt service reserve program. Excluding the debt service reserve program, Commercial real estate loans were flat for the quarter.

Deposits - QTD Averages & Costs

% Change

($ in millions) 2Q20 1Q20 2Q19 LQ Y/Y

Non-interest bearing deposits 2,214 2,046 1,927 8 % 15 %

Interest bearing deposits 5,036 5,061 4,664 - % 8 %

Total deposits $7,250 $7,107 $6,590 2 % 10 %



Cost of total deposits 0.41 % 0.72 % 0.88 % (0.31) % (0.47) %

Cost of total interest-bearing 0.59 % 1.02 % 1.25 % (0.43) % (0.66) %deposits

* Average total deposits in the second quarter of 2020 increased 2% linked quarter and 10% year-over-year. * Linked quarter, average total deposits increased primarily driven by a higher average non-interest bearing deposits of commercial clients. * Year-over-year, average non-interest bearing deposits increased 15% primarily driven by higher commercial client balances. * Year-over-year, average interest bearing deposits increased 8%, primarily driven by higher commercial client money market balances and wealth sweep deposits, partially offset by lower brokered CD balances.

Provision and Asset Quality



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

Provision and Allowance

Provision/(credit) for loan losses $22.6 $17.0 $(3.7) $0.2 $1.4

Provision for unfunded loan 2.8 1.8 - - -commitments

Total Provision for credit losses $25.4 $18.8 $(3.7) $0.2 $1.4

Allowance for loan losses as a % 1.22% 0.97% 1.03% 1.07% 1.06%of Total loans



Asset Quality

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

Total nonaccrual loans 25.6 24.3 16.1 17.6 17.2

Nonaccrual loans as a % of Total 0.35% 0.35% 0.23% 0.25% 0.24%loans



Special Mention Loans (Criticized $191.9 $92.6 $52.0 $58.1 $70.7Loans)

Classified Loans 114.2 112.3 74.0 80.8 71.0

Total criticized and classified $306.1 $204.9 $126.1 $139.0 $141.7loans

Total Provision for credit losses of $25.4 million during the second quarter of 2020 was primarily driven by the deterioration of the macroeconomic outlook as a result of the COVID-19 pandemic and increased weightings of more severe scenarios in the CECL model. The allowance for loan losses as a percentage of total loans excluding PPP loans was 1.28% as of June 30, 2020.

Total criticized and classified loans as of June 30, 2020 was $306.1 million, an increase of $101.2 million, or 49%, linked quarter and $164.4 million, or 116%, year-over-year. The increase in criticized and classified loans during the second quarter of 2020 was primarily driven by the downgrade of commercial real estate loans to the special mention category, which represents loans where the borrower is affected by unfavorable economic conditions or has adverse operating trends but has not yet reached the point of jeopardizing loan repayment.

Capital



2Q20 1Q20 4Q19 3Q19 2Q19

Tangible common equity/ Tangible assets 8.3% 8.8% 8.6% 8.6% 8.4%(non-GAAP)

Tangible book value per share (non-GAAP) $9.25 $9.31 $9.02 $8.90 $8.71



Regulatory Capital Ratios: ^3

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

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

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

Tier 1 leverage capital 9.2% 9.7% 9.8% 9.7% 9.6%

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

The Company's regulatory capital ratios remained generally flat linked quarter. The declines in Tangible common equity/Tangible assets (non-GAAP) and the Tier 1 leverage ratio are primarily driven by asset growth, which was associated with PPP loans.

Dividend Payments

Concurrent with the release of second 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 August 7, 2020, and the payment date is August 21, 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, total noninterest expense excluding intangibles; total noninterest expense excluding provision for off-balance sheet commitments; and 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; 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 Wednesday, July 29, 2020, to discuss the financial results, business highlights and outlook. To access the call:

Dial In #: (888) 317-6003 Elite Entry Number: 3768361

Replay Information: Available from July 29, 2020 at 12:00 p.m. Eastern Time until August 5, 2020 Dial In #: (877) 344-7529 Conference Number: 10146449

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)

2Q20 1Q20 4Q19 3Q19 2Q19

ASSETS:

Cash and cash $ 179,027 $ 61,714 $ 292,479 $ 78,010 $ 65,756 equivalents

Investmentsecurities 1,002,970 993,166 978,284 935,538 966,731 available-for-sale

Investmentsecurities 42,495 45,395 48,212 51,379 54,482 held-to-maturity

Equity securities 24,492 23,080 18,810 21,780 19,092 at fair value

Stock in FederalHome Loan Bank and 42,407 45,273 39,078 47,756 64,453 Federal ReserveBank

Loans held for 9,786 7,671 7,386 6,658 3,640 sale

Loans 7,332,954 7,043,338 6,976,704 7,067,151 7,080,260

Less: Allowance 89,324 68,211 71,982 75,359 75,067 for loan losses

Loans, net ofallowance for loan 7,243,630 6,975,127 6,904,722 6,991,792 7,005,193 losses

Premises and 43,805 43,544 44,527 42,658 40,244 equipment, net

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

Intangible assets, 8,935 9,637 10,352 10,622 10,884 net

Accrued interest 24,918 24,054 24,175 24,851 26,411 receivable

Deferred income 9,116 5,630 11,383 15,704 17,183 taxes, net

Right-of-use 94,143 98,896 102,075 107,045 110,880 assets

Other assets 375,575 355,532 291,411 299,544 270,317

TOTAL ASSETS $ 9,158,906 $ 8,746,326 $ 8,830,501 $ 8,690,944 $ 8,712,873



LIABILITIES:

Deposits $ 7,427,397 $ 6,835,572 $ 7,241,476 $ 6,658,242 $ 6,437,963

Securities soldunder agreements 46,623 45,319 53,398 48,860 62,372 to repurchase

Federal funds - 145,000 - 230,000 135,000 purchased

Federal Home Loan 426,313 491,254 350,829 570,904 920,068 Bank borrowings

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

Lease liabilities 108,234 113,574 117,214 122,799 126,740

Other liabilities 218,771 180,452 140,820 143,607 124,370

TOTAL LIABILITIES 8,333,701 7,917,534 8,010,100 7,880,775 7,912,876



REDEEMABLENONCONTROLLING - - 1,383 1,481 1,786 INTERESTS ("RNCI")

SHAREHOLDERS' EQUITY:

Common stock,$1.00 par value; 82,058 81,800 83,266 83,242 83,774 authorized:170,000,000 shares

Additional paid-in 594,463 593,167 600,708 599,877 603,869 capital

Retained earnings 118,647 131,761 127,469 116,210 106,443

Accumulated othercomprehensive 30,037 22,064 7,575 9,359 4,125 income

TOTALSHAREHOLDERS' 825,205 828,792 819,018 808,688 798,211 EQUITY

TOTAL LIABILITIES,RNCI, AND $ 9,158,906 $ 8,746,326 $ 8,830,501 $ 8,690,944 $ 8,712,873 SHAREHOLDERS'EQUITY



BOSTON PRIVATEFINANCIAL HOLDINGS, INC.

Consolidated Income Statements

Unaudited ($ inthousands, except share andper share data)

2Q20 1Q20 4Q19 3Q19 2Q19

REVENUE:

Interest income $ 68,819 $ 73,082 $ 75,291 $ 77,604 $ 78,728

Interest expense 9,881 15,825 19,166 21,451 21,268

Net interest 58,938 57,257 56,125 56,153 57,460 income

Provision/(credit) for 22,604 16,962 (3,668) 167 1,363 loan losses ^4

Net interestincome afterprovision/ 36,334 40,295 59,793 55,986 56,097 (credit) forloan losses



Wealthmanagement and 17,261 18,371 18,720 19,067 18,912 trust fees ^5

Investment 1,770 1,925 2,554 2,496 2,455 management fees

Private banking 2,395 2,490 2,924 2,658 2,867 fee income

Gain on sale of 204 100 557 934 58 loans, net

Total core fees 21,630 22,886 24,755 25,155 24,292 and income

Total other 1,032 (1,365) 2,038 (29) 88 income

TOTAL REVENUE ^6 81,600 78,778 82,918 81,279 81,840



NONINTEREST EXPENSE:

Salaries andemployee 33,937 35,096 34,186 31,684 32,706 benefits

Occupancy and 7,560 7,646 7,578 8,260 7,852 equipment

Information 7,113 6,725 6,476 5,169 5,137 systems

Professional 3,446 3,601 3,920 4,435 3,313 services

Marketing andbusiness 2,313 1,890 2,017 1,403 1,934 development

Amortization of 702 715 676 671 672 intangibles

FDIC insurance 767 - (19) 59 585

Other ^4 5,615 5,235 3,623 3,856 3,460

TOTALNONINTEREST 61,453 60,908 58,457 55,537 55,659 EXPENSE



INCOME/(LOSS)BEFORE INCOME (2,457) 908 28,129 25,575 24,818 TAXES

Income tax 841 102 6,788 5,517 5,369 expense

Net income/(loss) beforeattribution to (3,298) 806 21,341 20,058 19,449 noncontrollinginterests

Less: Net incomeattributable to - 6 97 96 69 noncontrollinginterests

NET INCOME/(LOSS) $ (3,298) $ 800 $ 21,244 $ 19,962 $ 19,380 ATTRIBUTABLE TOTHE COMPANY



Adjustments,treasury stock - 414 98 304 (816) method ^7

NET INCOME/(LOSS)ATTRIBUTABLE TO $ (3,298) $ 1,214 $ 21,342 $ 20,266 $ 18,564 COMMONSHAREHOLDERS



COMMON SHARE DATA:

Weighted averagebasic shares 81,929,752 83,005,064 83,238,982 83,631,403 83,565,780 outstanding

Weighted averagediluted shares 81,929,752 83,318,041 83,637,786 83,956,708 84,048,972 outstanding ^8

Diluted earnings/(loss) per $ (0.04) $ 0.01 $ 0.26 $ 0.24 $ 0.22 share





4 In the first and second quarter of 2020, there was a $17.0 million and $22.6 million provision expense for loan losses, respectively. Additionally, in the first and second quarter of 2020, there was a $1.8 million and $2.8 million provision expense related to the off-balance sheet commitments included in Other expense, respectively.

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/(loss).

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 share data)

Six months ended June 30,

2020 2019

REVENUE:

Interest income $ 141,901 $ 155,552

Interest expense 25,706 39,754

Net interest income 116,195 115,798

Provision/(credit) for loan losses ^4 39,566 (63)

Net interest income after provision/(credit) for 76,629 115,861 loan losses



Wealth management and trust fees ^5 35,632 37,970

Investment management fees 3,695 5,105

Private banking fee income 4,885 5,366

Gain on sale of loans, net 304 131

Total core fees and income 44,516 48,572

Total other income (333) 1,056

TOTAL REVENUE ^6 160,378 165,426



NONINTEREST EXPENSE:

Salaries and employee benefits 69,033 68,432

Occupancy and equipment 15,206 16,200

Information systems 13,838 10,997

Professional services 7,047 6,873

Marketing and business development 4,203 3,019

Amortization of intangibles 1,417 1,344

FDIC insurance 767 1,245

Restructuring - 1,646

Other ^4 10,850 6,456

TOTAL NONINTEREST EXPENSE 122,361 116,212



INCOME/(LOSS) BEFORE INCOME TAXES (1,549) 49,277

Income tax expense 943 10,286

Net income/(loss) before attribution to (2,492) 38,991 noncontrolling interests

Less: Net income attributable to noncontrolling 6 169 interests

NET INCOME/(LOSS) ATTRIBUTABLE TO THE COMPANY $ (2,498) $ 38,822



Adjustments, treasury stock method ^7 414 741

NET INCOME/(LOSS) ATTRIBUTABLE TO COMMON $ (2,084) $ 39,563 SHAREHOLDERS



COMMON SHARE DATA

Weighted average basic shares outstanding 82,464,438 83,426,213

Weighted average diluted shares outstanding ^8 82,464,438 84,036,050

Diluted earnings/(loss) per share $ (0.03) $ 0.47



4 In the first and second quarter of 2020, there was a $17.0 million and $22.6 million provision expense for loan losses, respectively. Additionally, in the first and second quarter of 2020, there was a $1.8 million and $2.8 million provision expense related to the off-balance sheet commitments included in Other expense, respectively.

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/(loss).

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 PRIVATEFINANCIAL HOLDINGS, INC.

ConsolidatedFinancial Highlights

Unaudited ($ inthousands, except share andper share data)

2Q20 1Q20 4Q19 3Q19 2Q19

KEY STATISTICS:

Return onaverage assets (0.15) % 0.04 % 0.96 % 0.91 % 0.90 %(non-GAAP) ^9

ROACE (non-GAAP) (1.58) % 0.39 % 10.29 % 9.80 % 9.83 %^ 9

ROATCE (1.43) % 0.72 % 11.51 % 10.99 % 11.06 %(non-GAAP) ^9

Efficiency ratio 74.4 % 76.4 % 69.7 % 67.5 % 67.2 %(non-GAAP)^ 9

Noninterestincome to total 27.8 % 27.3 % 32.3 % 30.9 % 29.8 %revenue



Net interest 2.75 % 2.76 % 2.70 % 2.72 % 2.78 %margin

Average loan toaverage deposit 100.5 % 99.0 % 101.6 % 105.9 % 106.6 %ratio

Cost of total 0.41 % 0.72 % 0.86 % 0.92 % 0.88 %deposits

Cost ofinterest-bearing 0.59 % 1.02 % 1.20 % 1.31 % 1.25 %deposits

Cost of total 0.50 % 0.83 % 0.99 % 1.12 % 1.11 %funding



Allowance forloan loss / 1.22 % 0.97 % 1.03 % 1.07 % 1.06 %Total loans

Nonperformingloans / Total 0.35 % 0.35 % 0.23 % 0.25 % 0.24 %loans

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



CAPITAL HIGHLIGHTS:

Tier 1 common $ 731,316 $ 742,044 $ 745,926 $ 732,980 $ 726,872 equity ^3

Tier 1 capital ^ $ 831,338 $ 842,066 $ 846,337 $ 833,431 $ 827,299 3

Total capital ^3 $ 913,936 $ 914,572 $ 919,573 $ 910,076 $ 903,675



Risk-weightedassets ("RWA") ^ $ 6,593,981 $ 6,627,339 $ 6,530,804 $ 6,533,884 $ 6,491,184 3

Average assets $ 9,009,565 $ 8,691,254 $ 8,659,944 $ 8,588,358 $ 8,617,803 for leverage ^3



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

Tier 1risk-based 12.61 % 12.71 % 12.96 % 12.76 % 12.74 %capital ratio ^3

Total risk-based 13.86 % 13.80 % 14.08 % 13.93 % 13.92 %capital ratio ^3

Tier 1 leverage 9.23 % 9.69 % 9.77 % 9.70 % 9.60 %capital ratio ^3



Total equity / 9.01 % 9.48 % 9.27 % 9.30 % 9.16 %Total assets

Tangible commonequity / 8.34 % 8.77 % 8.57 % 8.59 % 8.44 %Tangible assets(non-GAAP)



End of periodmarket price per $ 6.88 $ 7.15 $ 12.03 $ 11.66 $ 12.07 share

End of periodshares 82,058,483 81,800,486 83,265,674 83,241,952 83,774,335outstanding

Book value per $ 10.06 $ 10.13 $ 9.84 $ 9.71 $ 9.53 common share

Tangible bookvalue per share $ 9.25 $ 9.31 $ 9.02 $ 8.90 $ 8.71 (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)

2Q20 1Q20 4Q19 3Q19 2Q19

ASSETS UNDER MANAGEMENT AND ADVISORY ("AUM"):

WealthManagement $ 14,889,000 $ 13,497,000 $ 15,224,000 $ 14,695,000 $ 14,649,000 and Trust

Other ^2 1,067,000 1,016,000 1,544,000 1,533,000 1,550,000

TOTAL AUM $ 15,956,000 $ 14,513,000 $ 16,768,000 $ 16,228,000 $ 16,199,000



AUM Rollforward:

Beginning $ 14,513,000 $ 16,768,000 $ 16,228,000 $ 16,199,000 $ 16,122,000 balance

Net flows (40,000) 150,000 (209,000) (137,000) (269,000)

Market 1,483,000 (2,405,000) 749,000 166,000 346,000

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



AUM Net Flows:

WealthManagement $ 60,000 $ 176,000 $ (114,000) $ (100,000) $ (233,000) and Trust

Other ^2 (100,000) (26,000) (95,000) (37,000) (36,000)

TOTAL NET $ (40,000) $ 150,000 $ (209,000) $ (137,000) $ (269,000) FLOWS



DEPOSITS:

Demanddeposits $ 2,293,864 $ 2,020,440 $ 1,971,013 $ 1,947,363 $ 1,854,091 (non-interestbearing)

Savings and 758,656 653,006 646,199 666,107 631,166 NOW

Money market 3,753,228 3,468,701 3,969,330 3,366,623 3,228,608

Certificates 621,649 693,425 654,934 678,149 724,098 of deposit

TOTAL $ 7,427,397 $ 6,835,572 $ 7,241,476 $ 6,658,242 $ 6,437,963 DEPOSITS



LOANS:

Commercialand $ 565,748 $ 670,744 $ 694,034 $ 695,029 $ 656,186 industrial

PaycheckProtection 370,034 - - - - Program

Commercial 419,264 445,319 447,927 448,488 450,307 tax exempt

Commercial 2,676,708 2,626,299 2,551,274 2,533,346 2,530,556 real estate

Construction 240,211 238,293 225,983 209,741 200,378 and land

Residential 2,859,627 2,841,926 2,839,155 2,964,042 3,025,758

Home equity 84,588 89,350 83,657 84,432 89,930

Consumer 116,774 131,407 134,674 132,073 127,145

TOTAL LOANS $ 7,332,954 $ 7,043,338 $ 6,976,704 $ 7,067,151 $ 7,080,260



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

BOSTONPRIVATEFINANCIAL HOLDINGS,INC.

Asset Quality

Unaudited ($ in thousands)

2Q20 1Q20 4Q19 3Q19 2Q19

CHARGE-OFFS:

Loan $ (1,546) $ (528) $ (285) $ (185) $ (195) charge-offs

Loan 55 180 576 310 85 recoveries

NET(CHARGE-OFFS) $ (1,491) $ (348) $ 291 $ 125 $ (110) /RECOVERIES

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



Net(Charge-offs) /Recoveriesby Loan Type:

Commercialand $ (337) $ (473) $ 118 $ 95 $ (155) industrial

Commercial - - 183 27 30 real estate

Home equity (1,157) 132 4 6 -

Consumer 3 (7) (14) (3) 15

NET(CHARGE-OFFS) $ (1,491) $ (348) $ 291 $ 125 $ (110) /RECOVERIES



LOAN QUALITY DATA:

Special $ 191,882 $ 92,623 $ 52,026 $ 58,133 $ 70,677 mention loans



Accruingclassified 88,586 87,948 57,922 63,278 53,883 loans ^10

Nonaccrual 25,604 24,314 16,103 17,565 17,155 loans

Total 114,190 112,262 74,025 80,843 71,038 classified

Criticizedand $ 306,072 $ 204,885 $ 126,051 $ 138,976 $ 141,715 classifiedloans



Loans 30-89days past due $ 5,535 $ 14,852 $ 25,945 $ 4,179 $ 2,434 and accruing^11



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 and at June 30, 2019, the Company had one loan totaling less than $0.1 million and one loan totaling $0.9 million that was more than 90 days past due but still on accrual status, respectively. Both loans 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.

Average Balances, Yields, and Rates

Unaudited ($ in thousands)

Average Balance Interest Income/Expense Average Yield/Rate

2Q20 1Q20 2Q19 2Q20 1Q20 2Q19 2Q20 1Q20 2Q19

INTEREST-EARNING ASSETS

Cash and investments:

Taxableinvestment $ 198,337 $ 201,174 $ 227,029 $ 859 $ 868 $ 1,121 1.73 % 1.73 % 1.98 %securities

Non-taxableinvestment 316,513 315,681 304,309 2,005 1,998 1,901 2.53 % 2.53 % 2.50 %securities

Mortgage-backed 505,669 520,629 508,033 2,566 2,787 2,706 2.03 % 2.14 % 2.13 %securities

Short-terminvestments and 186,895 147,482 130,363 582 1,071 1,057 1.23 % 2.89 % 3.23 %other

Total cash and 1,207,414 1,184,966 1,169,734 6,012 6,724 6,785 1.99 % 2.27 % 2.32 %investments

Loans: ^12

Commercial and 1,037,285 1,148,986 1,091,903 9,708 10,724 11,170 3.70 % 3.69 % 4.05 %industrial

PaycheckProtection 283,619 - - 1,573 - - 2.19 % - % - %Program

Commercial real 2,659,074 2,582,305 2,506,637 24,602 27,482 29,953 3.66 % 4.21 % 4.73 %estate

Construction and 233,305 233,324 202,609 2,251 2,572 2,559 3.82 % 4.36 % 5.00 %land

Residential 2,862,708 2,850,833 3,008,753 23,079 23,468 25,735 3.22 % 3.29 % 3.42 %

Home equity 88,307 86,048 91,384 650 952 1,146 2.96 % 4.45 % 5.03 %

Other consumer 124,346 132,237 124,778 944 1,160 1,380 3.05 % 3.53 % 4.43 %

Total loans 7,288,644 7,033,733 7,026,064 62,807 66,358 71,943 3.42 % 3.75 % 4.07 %

Total earning 8,496,058 8,218,699 8,195,798 68,819 73,082 78,728 3.22 % 3.54 % 3.82 %assets



LESS: Allowance 68,473 51,730 73,856 for loan losses

Cash and due 39,959 49,571 45,705 from banks

Other assets 641,657 562,851 511,859

TOTAL AVERAGE $ 9,109,201 $ 8,779,391 $ 8,679,506 ASSETS



INTEREST-BEARING LIABILITIES

Interest-bearing deposits: ^13

Savings and NOW $ 680,758 $ 638,926 $ 684,507 $ 187 $ 232 $ 276 0.11 % 0.15 % 0.16 %

Money market 3,684,147 3,753,045 3,226,569 4,848 9,657 10,476 0.53 % 1.03 % 1.30 %

Certificates of 671,470 668,818 752,500 2,300 2,907 3,763 1.38 % 1.75 % 2.01 %deposit

Totalinterest-bearing 5,036,375 5,060,789 4,663,576 7,335 12,796 14,515 0.59 % 1.02 % 1.25 %deposits ^13

Juniorsubordinated 106,363 106,363 106,363 764 917 1,080 2.84 % 3.41 % 4.02 %debentures

FHLB borrowings 610,856 455,813 952,645 1,782 2,112 5,673 1.15 % 1.83 % 2.36 %and other

Totalinterest-bearing 5,753,594 5,622,965 5,722,584 9,881 15,825 21,268 0.69 % 1.13 % 1.48 %liabilities ^13



Non-interestbearing demand 2,213,829 2,046,102 1,926,591 deposits ^13

Payables andother 306,896 270,371 238,544 liabilities

Total average 8,274,319 7,939,438 7,887,719 liabilities

Redeemablenoncontrolling - 1,018 943 interests

Averageshareholders' 834,882 838,935 790,844 equity

TOTAL AVERAGELIABILITIES,RNCI, AND $ 9,109,201 $ 8,779,391 $ 8,679,506 SHAREHOLDERS'EQUITY

Net interest $ 58,938 $ 57,257 $ 57,460 income

Interest rate 2.53 % 2.41 % 2.34 %spread

Net interest 2.75 % 2.76 % 2.78 %margin



Average total $ 7,250,204 $ 7,106,891 $ 6,590,167 0.41 % 0.72 % 0.88 %deposits ^13

Average totaldeposits and $ 7,967,423 $ 7,669,067 $ 7,649,175 0.50 % 0.83 % 1.11 %borrowings ^13



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

Six Months Ended Six Months Ended Six Months Ended

INTEREST-EARNING 6/30/20 6/30/19 6/30/20 6/30/19 6/30/ 6/30/ASSETS 20 19

Cash and investments:

Taxableinvestment $ 199,755 $ 235,218 $ 1,727 $ 2,306 1.73 % 1.92 %securities

Non-taxableinvestment 316,097 305,581 4,003 3,802 2.53 % 2.49 %securities

Mortgage-backed 513,149 514,872 5,353 5,603 2.09 % 2.18 %securities

Short-terminvestments and 167,188 105,610 1,653 1,965 1.96 % 3.61 %other

Total cash and 1,196,189 1,161,281 12,736 13,676 2.13 % 2.34 %investments

Loans: ^12

Commercial and 1,091,648 1,081,092 20,432 22,150 3.69 % 4.08 %industrial

PaycheckProtection 143,297 - 1,573 - 2.23 % - %Program

Commercial real 2,620,689 2,452,824 52,084 58,104 3.93 % 4.71 %estate

Construction and 233,315 206,956 4,823 5,200 4.09 % 5.00 %land

Residential 2,856,771 2,990,948 46,547 51,280 3.26 % 3.43 %

Home equity 87,178 91,017 1,602 2,267 3.69 % 5.02 %

Other consumer 128,292 129,332 2,104 2,875 3.29 % 4.48 %

Total loans 7,161,190 6,952,169 129,165 141,876 3.58 % 4.07 %

Total earning 8,357,379 8,113,450 141,901 155,552 3.38 % 3.82 %assets



LESS: Allowance 60,102 74,692 for loan losses

Cash and due 44,831 46,010 from banks

Other assets 602,319 502,068

TOTAL AVERAGE $ 8,944,427 $ 8,586,836 ASSETS



INTEREST-BEARING LIABILITIES

Interest-bearing deposits: ^13

Savings and NOW $ 659,842 $ 679,716 $ 419 $ 572 0.13 % 0.17 %

Money market 3,717,664 3,283,891 14,505 20,549 0.78 % 1.26 %

Certificates of 670,144 764,094 5,207 7,452 1.56 % 1.97 %deposit

Totalinterest-bearing 5,047,650 4,727,701 20,131 28,573 0.80 % 1.22 %deposits ^13

Juniorsubordinated 106,363 106,363 1,681 2,201 3.17 % 4.17 %debentures

FHLB borrowings 533,334 785,245 3,894 8,980 1.44 % 2.27 %and other

Totalinterest-bearing 5,687,347 5,619,309 25,706 39,754 0.90 % 1.42 %liabilities ^13



Non-interestbearing demand 2,129,758 1,950,088 deposits ^13

Payables andother 288,846 236,894 liabilities

Total average 8,105,951 7,806,291 liabilities

Redeemablenoncontrolling 573 1,619 interests

Averageshareholders' 837,903 778,926 equity

TOTAL AVERAGELIABILITIES,RNCI, AND $ 8,944,427 $ 8,586,836 SHAREHOLDERS'EQUITY

Net interest $ 116,195 $ 115,798 income

Interest rate 2.48 % 2.40 %spread

Net interest 2.76 % 2.84 %margin



Average total $ 7,177,408 $ 6,677,789 0.56 % 0.86 %deposits ^13

Average totaldeposits and $ 7,817,105 $ 7,569,397 0.66 % 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-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.

Regional Loan Data

Unaudited ($ in thousands)

2Q20 1Q20 4Q19 3Q19 2Q19

New England $ 3,781,603 $ 3,724,959 $ 3,776,747 $ 3,868,690 $ 3,957,221

Northern 1,741,255 1,618,668 1,532,786 1,559,569 1,538,441 California

Southern 1,810,096 1,699,711 1,667,171 1,638,892 1,584,598 California

Total loans $ 7,332,954 $ 7,043,338 $ 6,976,704 $ 7,067,151 $ 7,080,260



Loans(charged-off) /recovered,net:

New England $ 7 $ 15 $ 414 $ 275 $ 31

Northern 3 122 (10) 6 20 California

Southern (1,501) (485) (113) (156) (161) California

Total netloans $ (1,491) $ (348) $ 291 $ 125 $ (110) (charged-off)/recovered



Specialmention loans:

New England $ 83,026 $ 61,741 $ 21,691 $ 19,828 $ 35,235

Northern 75,609 5,947 5,227 4,821 10,360 California

Southern 33,247 24,935 25,108 33,484 25,082 California

Total special $ 191,882 $ 92,623 $ 52,026 $ 58,133 $ 70,677 mention loans



Accruingclassified loans:

New England $ 53,124 $ 50,483 $ 20,428 $ 21,830 $ 13,012

Northern 21,712 24,843 24,946 23,938 25,957 California

Southern 13,750 12,622 12,548 17,510 14,914 California

Totalaccruing $ 88,586 $ 87,948 $ 57,922 $ 63,278 $ 53,883 classifiedloans



Nonaccruing loans:

New England $ 11,630 $ 11,965 $ 9,764 $ 8,999 $ 8,837

Northern 9,459 6,575 319 2,395 2,644 California

Southern 4,515 5,774 6,020 6,171 5,674 California

Totalnonaccruing $ 25,604 $ 24,314 $ 16,103 $ 17,565 $ 17,155 loans



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.

Reconciliationsof Non-GAAP FinancialMeasures

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

2Q20 1Q20 4Q19 3Q19 2Q19

ROACE AND ROATCE:

Net income/(loss)attributable to $ (3,298) $ 800 $ 21,244 $ 19,962 $ 19,380 the Company(GAAP) (A)

ADD:Amortization of 555 565 534 530 531 intangibles,net of tax

Tangible commonnet income/ $ (2,743) $ 1,365 $ 21,778 $ 20,492 $ 19,911 (loss)(non-GAAP) (B)



Total averageshareholders' $ 834,882 $ 838,935 $ 818,816 $ 807,890 $ 790,844 equity (C)

LESS: Averagegoodwill and (66,877) (67,586) (68,031) (68,359) (68,889) intangibles,net

Averagetangible common $ 768,005 $ 771,349 $ 750,785 $ 739,531 $ 721,955 equity(non-GAAP) (D)



ROACE(annualized) (A (1.58) % 0.39 % 10.29 % 9.80 % 9.83 %/C)

ROATCE(annualized) (B (1.43) % 0.72 % 11.51 % 10.99 % 11.06 %/D)





PRE-TAX,PRE-PROVISION INCOME:

Income/(loss)before income $ (2,457) $ 908 $ 28,129 $ 25,575 $ 24,818 taxes (GAAP)

ADD BACK:Provision/ 22,604 16,962 (3,668) 167 1,363 (credit) forloan losses

Pre-tax,pre-provision $ 20,147 $ 17,870 $ 24,461 $ 25,742 $ 26,181 income(non-GAAP)





TANGIBLE COMMON EQUITY:

Totalshareholders' $ 825,205 $ 828,792 $ 819,018 $ 808,688 $ 798,211 equity (GAAP)

LESS: Goodwilland (66,542) (67,244) (67,959) (68,229) (68,491) intangibles,net

Tangible commonequity $ 758,663 $ 761,548 $ 751,059 $ 740,459 $ 729,720 (non-GAAP) (A)



Total assets $ 9,158,906 $ 8,746,326 $ 8,830,501 $ 8,690,944 $ 8,712,873 (GAAP)

LESS: Goodwilland (66,542) (67,244) (67,959) (68,229) (68,491) intangibles,net

Tangible assets $ 9,092,364 $ 8,679,082 $ 8,762,542 $ 8,622,715 $ 8,644,382 (non-GAAP) (B)



End of periodshares 82,058,483 81,800,486 83,265,674 83,241,952 83,774,335outstanding (C)



Tangible commonequity/Tangible assets 8.34 % 8.77 % 8.57 % 8.59 % 8.44 %(non-GAAP) (A/B)

Tangible bookvalue per share $9.25 $9.31 $9.02 $8.90 $8.71(non-GAAP) (A/C)



BOSTON PRIVATE FINANCIAL HOLDINGS, INC.

Reconciliationsof Non-GAAP FinancialMeasures

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

2Q20 1Q20 4Q19 3Q19 2Q19

RETURN ON AVERAGE ASSETS:

Net income/(loss) (GAAP) $ (3,298) $ 800 $ 21,244 $ 19,962 $ 19,380 (A)

Average assets 9,109,201 8,779,391 8,738,750 8,665,352 8,679,506 (non-GAAP) (B)

Return onaverage assets(annualized) (0.15) % 0.04 % 0.96 % 0.91 % 0.90 %(non-GAAP) (A/B)



EFFICIENCY RATIO:

Totalnoninterest $ 61,453 $ 60,908 $ 58,457 $ 55,537 $ 55,659 expense (GAAP)(A)

LESS:Amortization of 702 715 676 671 672 intangibles

Totalnoninterest $ 60,751 $ 60,193 $ 57,781 $ 54,866 $ 54,987 expense(non-GAAP) (B)



Net interest $ 58,938 $ 57,257 $ 56,125 $ 56,153 $ 57,460 income (GAAP)

Total core feesand income 21,630 22,886 24,755 25,155 24,292 (GAAP)

Total otherincome/(loss) 1,032 (1,365) 2,038 (29) 88 (GAAP)

Total revenue $ 81,600 $ 78,778 $ 82,918 $ 81,279 $ 81,840 (GAAP) (C)



Efficiencyratio (GAAP) (A 75.3 % 77.3 % 70.5 % 68.3 % 68.0 %/C)

Efficiencyratio,excludingamortization of 74.4 % 76.4 % 69.7 % 67.5 % 67.2 %intangibles(non-GAAP) (B/C)



NET INCOME/(LOSS) ATTRIBUTABLE TOTHE COMPANY:

Net income/(loss)attributable to $ (3,298) $ 800 $ 21,244 $ 19,962 $ 19,380 the Company(GAAP)

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

Tax effect at - - 322 - - statutory rate

Net income/(loss)attributable to $ (3,298) $ 800 $ 20,457 $ 19,962 $ 19,380 the Company(non-GAAP)



NET INCOME/(LOSS)ATTRIBUTABLE TO COMMONSHAREHOLDERS:

Net income/(loss)attributable to $ (3,298) $ 1,214 $ 21,342 $ 20,266 $ 18,564 commonshareholders(GAAP)

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

Tax effect at - - 322 - - statutory rate

Net income/(loss)attributable tothe commonshareholders, $ (3,298) $ 1,214 $ 20,555 $ 20,266 $ 18,564 treasury stockmethod,excludingnotable items(non-GAAP)



Weightedaverage diluted 81,929,752 83,318,041 83,637,786 83,956,708 84,048,972 sharesoutstanding

Dilutedearnings/(loss) $ (0.04) $ 0.01 $ 0.26 $ 0.24 $ 0.22 per share(GAAP)

Dilutedearnings/(loss)per share, $ (0.04) $ 0.01 $ 0.25 $ 0.24 $ 0.22 excludingnotable items(non-GAAP)



Average commonequity $ 834,882 $ 838,935 $ 818,816 $ 807,890 $ 790,844 (non-GAAP)

Averagetangible common $ 768,005 $ 771,349 $ 750,785 $ 739,531 $ 721,955 equity(non-GAAP)

ROACE,excluding (1.58) % 0.39 % 9.91 % 9.80 % 9.83 %notable items(non-GAAP)

ROATCE,excluding (1.43) % 0.72 % 11.09 % 10.99 % 11.06 %notable items(non-GAAP)



Pre-tax,pre-provision $ 20,147 $ 17,870 $ 24,461 $ 25,742 $ 26,181 income(non-GAAP)

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

Pre-tax,pre-provisionincome, $ 20,147 $ 17,870 $ 23,352 $ 25,742 $ 26,181 excludingnotable items(non-GAAP)



15 In the fourth quarter of 2019, there was a $1.1 million gain 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/20200728005885/en/

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