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Boston Private Reports Third Quarter 2020 Results

Third Quarter 2020 Highlights include:

GAAP Net income of $22.7 million, or $0.28 per diluted share, and operating net income of $22.0 million, or $0.27 per diluted share
Return on average common equity (non-GAAP) of 10.7%; operating return on average common equity of 10.4%
Return on average tangible common equity (non-GAAP) of 11.9%; operating return on average tangible common equity of 11.6%
Average total deposits of $7.7 billion, a 16% increase year-over-year
Average total loans of $7.3 billion, a 3% increase year-over-year
Total assets under management/advisory (“AUM”) of $16.3 billion, flat year-over-year
Total net flows of negative $407 million driven by net flows of negative $395 million at Dalton, Greiner, Hartman, Maher & Co, LLC ("DGHM")
Total net provision credit of $2.8 million
Notable Item: $0.9 million gain related to the revaluation of a receivable from the divestiture of Bingham, Osborn & Scarborough, LLC ("BOS")

Boston, MA - October 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 data)3Q202Q203Q19LQY/Y
Net income/(loss) - GAAP$22.7$(3.3)$20.0nm14 %
Net income/(loss) - Operating22.0(3.3)20.0nm10 %
Diluted earnings/(loss) per share - GAAP$0.28$(0.04)$0.24nm17 %
Diluted earnings/(loss) per share - Operating$0.27$(0.04)$0.24nm13 %
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 ("ROATCE")11.9 %(1.4)%11.0 %
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.
1



Net Interest Income and Margin
% Change
($ in millions)3Q202Q203Q19LQY/Y
Net interest income$57.8$58.9$56.2(2)%%
Net interest margin2.61 %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)3Q202Q203Q19LQY/Y
Wealth management and trust fees$18.2$17.3$19.1%(4)%
Investment management fees1.41.82.5(21)%(44)%
Private banking fees 1
2.3 2.6 3.6 (11)%(35)%
Total core fees and income$22.0$21.6$25.22 %(13)%
Total other income1.1 1.0 — %nm
Total noninterest income$23.0$22.7$25.12 %(8)%
nm = not meaningful
1 Private banking fees includes Other banking fee income and Gain/(loss) on sale 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)3Q202Q203Q19LQY/Y
Wealth Management and Trust$15,581$14,889$14,695%%
Other 3
6721,0671,533(37)%(56)%
Total assets under management / advisory$16,253$15,956$16,2282 % %
Net flows
Wealth Management and Trust$(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.
2



Noninterest Expense
% Change
($ in millions)3Q202Q203Q19LQY/Y
Salaries and employee benefits$34.7$33.9$31.7%%
Occupancy and equipment8.2 7.6 8.3 %(1)%
Information systems7.1 7.1 5.2 — %37 %
Professional services4.0 3.4 4.4 17 %(9)%
Marketing and business development0.9 2.3 1.4 (60)%(33)%
Amortization of intangibles0.7 0.7 0.7 %%
FDIC insurance1.0 0.8 0.1 nmnm
Other4.4 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$55.51 %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)3Q202Q203Q19LQY/Y
Commercial and industrial$1,033$1,037$1,102— %(6)%
Paycheck Protection Program ("PPP")37328432 %nm
Commercial real estate2,6532,6592,518— %%
Construction and land218233196(6)%11 %
Residential2,8102,8633,016(2)%(7)%
Home equity848889(5)%(5)%
Other consumer112124128(10)%(13)%
Total loans$7,283$7,289$7,049 %3 %
Total loans, excluding PPP (non-GAAP)$6,910$7,005$7,049(1)%(2)%
Total loan yields3.23 %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
3



Deposits - QTD Averages & Costs
% Change
($ in millions)3Q202Q203Q19LQY/Y
Non-interest bearing deposits2,3212,2141,953%19 %
Interest bearing deposits5,3785,0364,705%14 %
Total deposits$7,700$7,250$6,6586 %16 %
Cost of total deposits0.33 %0.41 %0.92 %
Cost of total interest-bearing deposits0.48 %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)3Q202Q201Q204Q193Q19
Provision and Allowance
Provision/(credit) for loan losses$(4.6)$22.6$17.0$(3.7)$0.2
Reserve for unfunded loan commitments1.82.81.8
Total Provision for credit losses$(2.8)$25.4$18.8$(3.7)$0.2
Allowance for loan losses as a % of Total loans1.17 %1.22 %0.97 %1.03 %1.07 %
Asset Quality
Total net loans (charged-off)/ recovered(0.2)(1.5)(0.3)0.30.1
Total nonaccrual loans41.325.624.316.117.6
Nonaccrual loans as a % of Total loans0.57 %0.35 %0.35 %0.23 %0.25 %
Special mention loans (criticized loans)$199.5$191.9$92.6$52.0$58.1
Classified loans123.1114.2112.374.080.8
Total criticized and classified loans$322.6$306.1$204.9$126.1$139.0
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

4



Capital
3Q202Q201Q204Q193Q19
Tangible common equity/ Tangible assets (non-GAAP)8.3 %8.3 %8.8 %8.6 %8.6 %
Tangible book value per share (non-GAAP)$9.48$9.25$9.31$9.02$8.90
Regulatory Capital Ratios: 3
Tier 1 common equity11.3 %11.1 %11.2 %11.4 %11.2 %
Tier 1 risk-based capital12.8 %12.6 %12.7 %13.0 %12.8 %
Total risk-based capital14.1 %13.9 %13.8 %14.1 %13.9 %
Tier 1 leverage capital9.2 %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.
5




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.

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

6



BOSTON PRIVATE FINANCIAL HOLDINGS, INC.
Consolidated Balance Sheets
Unaudited ($ in thousands, except share and per share data)
 3Q202Q201Q204Q193Q19
ASSETS:
Cash and cash equivalents$546,263 $179,027 $61,714 $292,479 $78,010 
Investment securities available-for-sale1,011,327 1,002,970 993,166 978,284 935,538 
Investment securities held-to-maturity38,600 42,495 45,395 48,212 51,379 
Equity securities at fair value32,818 24,492 23,080 18,810 21,780 
Stock in Federal Home Loan Bank and Federal Reserve Bank36,618 42,407 45,273 39,078 47,756 
Loans held for sale15,074 9,786 7,671 7,386 6,658 
Loans7,222,569 7,332,954 7,043,338 6,976,704 7,067,151 
Less: Allowance for loan losses84,551 89,324 68,211 71,982 75,359 
Loans, net of allowance for loan losses7,138,018 7,243,630 6,975,127 6,904,722 6,991,792 
Premises and equipment, net42,907 43,805 43,544 44,527 42,658 
Goodwill57,607 57,607 57,607 57,607 57,607 
Intangible assets, net8,898 8,935 9,637 10,352 10,622 
Accrued interest receivable25,935 24,918 24,054 24,175 24,851 
Deferred income taxes, net8,250 9,116 5,630 11,383 15,704 
Right-of-use assets94,879 94,143 98,896 102,075 107,045 
Other assets374,111 375,575 355,532 291,411 299,544 
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 sold under agreements to repurchase42,544 46,623 45,319 53,398 48,860 
Federal funds purchased — 145,000 — 230,000 
Federal Home Loan Bank borrowings296,236 426,313 491,254 350,829 570,904 
Junior subordinated debentures106,363 106,363 106,363 106,363 106,363 
Lease liabilities108,932 108,234 113,574 117,214 122,799 
Other liabilities203,342 218,771 180,452 140,820 143,607 
TOTAL LIABILITIES8,585,136 8,333,701 7,917,534 8,010,100 7,880,775 
REDEEMABLE NONCONTROLLING INTERESTS (“RNCI”) — — 1,383 1,481 
SHAREHOLDERS' EQUITY:
Common stock, $1.00 par value; authorized: 170,000,000 shares82,255 82,058 81,800 83,266 83,242 
Additional paid-in capital597,113 594,463 593,167 600,708 599,877 
Retained earnings136,394 118,647 131,761 127,469 116,210 
Accumulated other comprehensive income30,407 30,037 22,064 7,575 9,359 
TOTAL SHAREHOLDERS' EQUITY846,169 825,205 828,792 819,018 808,688 
TOTAL LIABILITIES, RNCI, AND SHAREHOLDERS' EQUITY$9,431,305 $9,158,906 $8,746,326 $8,830,501 $8,690,944 

7




BOSTON PRIVATE FINANCIAL HOLDINGS, INC.
Consolidated Income Statements
Unaudited ($ in thousands, except share and per share data)
 3Q202Q201Q204Q193Q19
REVENUE:
Interest income$65,453 $68,819 $73,082 $75,291 $77,604 
Interest expense7,629 9,881 15,825 19,166 21,451 
Net interest income57,824 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 losses62,393 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 fees1,393 1,770 1,925 2,554 2,496 
Private banking fee income1,320 2,395 2,490 2,924 2,658 
Gain on sale of loans, net1,006 204 100 557 934 
Total core fees and income21,959 21,630 22,886 24,755 25,155 
Total other income1,086 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 benefits34,671 33,937 35,096 34,186 31,684 
Occupancy and equipment8,150 7,560 7,646 7,578 8,260 
Information systems7,096 7,113 6,725 6,476 5,169 
Professional services4,025 3,446 3,601 3,920 4,435 
Marketing and business development935 2,313 1,890 2,017 1,403 
Amortization of intangibles714 702 715 676 671 
FDIC insurance960 767 — (19)59 
Other 4
4,386 5,615 5,235 3,623 3,856 
TOTAL NONINTEREST EXPENSE60,937 61,453 60,908 58,457 55,537 
INCOME/(LOSS) BEFORE INCOME TAXES24,501 (2,457)908 28,129 25,575 
Income tax expense1,821 841 102 6,788 5,517 
Net income/(loss) before attribution to noncontrolling interests22,680 (3,298)806 21,341 20,058 
Less: Net income attributable to noncontrolling interests — 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 outstanding82,221,705 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.

8




BOSTON PRIVATE FINANCIAL HOLDINGS, INC.
Consolidated Income Statements
Unaudited ($ in thousands, except share and per share data)
 Nine months ended September 30,
 20202019
REVENUE:
Interest income$207,354 $233,156 
Interest expense33,335 61,205 
Net interest income174,019 171,951 
Provision/(credit) for loan losses 4
34,997 104 
Net interest income after provision/(credit) for loan losses139,022 171,847 
Wealth management and trust fees 5
53,872 57,037 
Investment management fees5,088 7,601 
Private banking fee income6,205 8,024 
Gain on sale of loans, net1,310 1,065 
Total core fees and income66,475 73,727 
Total other income753 1,027 
TOTAL REVENUE 6
241,247 246,705 
NONINTEREST EXPENSE:
Salaries and employee benefits103,704 100,116 
Occupancy and equipment23,356 24,460 
Information systems20,934 16,166 
Professional services11,072 11,308 
Marketing and business development5,138 4,422 
Amortization of intangibles2,131 2,015 
FDIC insurance 1,727 1,304 
Restructuring 1,646 
Other 4
15,236 10,312 
TOTAL NONINTEREST EXPENSE183,298 171,749 
INCOME BEFORE INCOME TAXES22,952 74,852 
Income tax expense2,764 15,803 
Net income before attribution to noncontrolling interests20,188 59,049 
Less: Net income attributable to noncontrolling interests6 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 outstanding82,382,050 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.


9




BOSTON PRIVATE FINANCIAL HOLDINGS, INC.
Consolidated Financial Highlights
Unaudited ($ in thousands, except share and per share data)
3Q202Q201Q204Q193Q19
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 revenue28.5 %27.8 %27.3 %32.3 %30.9 %
Net interest margin2.61 %2.75 %2.76 %2.70 %2.72 %
Average loan to average deposit ratio94.6 %100.5 %99.0 %101.6 %105.9 %
Cost of total deposits0.33 %0.41 %0.72 %0.86 %0.92 %
Cost of interest-bearing deposits0.48 %0.59 %1.02 %1.20 %1.31 %
Cost of total funding0.37 %0.50 %0.83 %0.99 %1.12 %
Allowance for loan losses / Total loans1.17 %1.22 %0.97 %1.03 %1.07 %
Nonperforming loans / Total loans0.57 %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 assets8.97 %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 outstanding82,254,59482,058,48381,800,48683,265,67483,241,952
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.

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BOSTON PRIVATE FINANCIAL HOLDINGS, INC.
Consolidated AUM and Balance Sheet - End of Period Balances
Unaudited ($ in thousands)
3Q202Q201Q204Q193Q19
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 returns704,000 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 NOW756,797 758,656 653,006 646,199 666,107 
Money market4,187,657 3,753,228 3,468,701 3,969,330 3,366,623 
Certificates of deposit537,139 621,649 693,425 654,934 678,149 
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 Program371,496 370,034 — — — 
Commercial tax-exempt472,342 419,264 445,319 447,927 448,488 
Commercial real estate2,659,890 2,676,708 2,626,299 2,551,274 2,533,346 
Construction and land211,697 240,211 238,293 225,983 209,741 
Residential2,729,164 2,859,627 2,841,926 2,839,155 2,964,042 
Home equity81,797 84,588 89,350 83,657 84,432 
Consumer113,038 116,774 131,407 134,674 132,073 
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")

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BOSTON PRIVATE FINANCIAL HOLDINGS, INC.
Provision and Asset Quality