Boston Private Reports Financial Results for the Fourth Quarter and Year End 2007

Boston Private Financial Holdings, Inc. (NASDAQ: BPFH) (the "Company”) today reported fourth quarter 2007 non-GAAP cash earnings per diluted share (defined later in this press release) of $0.52, a 4% increase over $0.50 per diluted share in the fourth quarter 2006. For the year, non-GAAP cash earnings were $1.96 per diluted share, an increase of 8% compared to $1.82 per diluted share for the year ended 2006. GAAP net loss was ($0.55) per share for the fourth quarter of 2007, compared to GAAP earnings of $0.40 per diluted share for the fourth quarter 2006. As previously announced, included in the 2007 results was a fourth quarter non-cash charge to GAAP earnings of approximately $29 million, or $0.75 per diluted share, related to a reduction in the carrying value of goodwill with respect to Gibraltar Private Bank. Also included in the 2007 fourth quarter results is a non-cash charge to GAAP earnings of approximately $13.9 million pre-tax ($8.1 million after-tax), or $0.22 per diluted share, related to a reduction in the value of intangible assets at Dalton, Greiner, Hartman, Maher & Co., LLC (DGHM). This charge is the result of management’s re-evaluation of certain assumptions used in the valuation models, given less robust asset flows than were previously expected, as well as market conditions. Excluding these impairment charges, operating earnings for the fourth quarter would have been $0.42 per diluted share, an increase of 5% from the fourth quarter last year. For the year, GAAP earnings were $0.39 per diluted share, a decrease of 73% compared to $1.43 per diluted share for the same period in 2006. Also, included in the fourth quarter 2007 financials are the results from the acquisition of Charter Bank ("Charter”) on July 1, 2007. In addition, the revenues and expenses of Bingham Osborn & Scarborough LLC ("BOS”) were included in the Company’s consolidated results after they became a majority-owned affiliate partner in August 2007. Loan Credit Quality The Company’s credit quality continues to compare favorably to industry averages. The Company recorded $506 thousand in net charge offs during the quarter, which represented less than 1 basis point of total loans, well below the SNL Bank Index average of 30 basis points (using third quarter 2007 statistics). Non-performing assets as a percentage of total assets increased 11 basis points, or $8.6 million, to $36.8 million from the prior quarter, which represents 0.54% of total assets, as of December 31, 2007. In comparison, the average bank in the SNL Bank Index had non-performing assets that represented 70 basis points of total assets for the third quarter 2007. The allowance for loan losses as a percentage of total loans was 1.05%, up 2 basis points from the prior quarter and 4 basis points from the fourth quarter of 2006. Financial Highlights Operating earnings (as defined below) increased to $62.2 million for the year, a 14% increase over 2006. The Company’s private banking segment had operating earnings of $52.8 million, a 7% increase; the investment management segment had operating income of $27.4 million, a 29% increase; and the wealth advisory segment operating income was $5.0 million or a 50% increase. Total Revenues for 2007 increased 17% to $404.7 million, compared to $344.9 million a year ago. Fourth quarter revenues were up 22% to $110.6 million from the fourth quarter of 2006. Net Interest Income increased $15.5 million, or 9%, to $189.0 million. On a same affiliate basis, net interest income increased $8.1 million, or 5%, to $181.6 million compared with 2006. The net interest margin was 3.46%, a decrease of 12 basis points from a year ago, and a decrease of 13 basis points from the third quarter 2007. The decline in net interest margin in the fourth quarter resulted from declining loan yields caused by the three Federal Reserve rate cuts since September, which were not offset by corresponding declines in the cost of deposits due to the competitive landscape. Wealth Advisory Fee Income increased $9.3 million to $36.2 million for 2007, an increase of 34% over the prior year. Investment Management Fee Income for 2007 totaled $162.6 million, an increase of 24% over 2006. Total Assets Under Management/Advisory from consolidated and unconsolidated affiliates increased 16%, or $5.1 billion, over the prior year to $37.8 billion. On a linked quarter basis, total assets under management and advisory from consolidated and unconsolidated affiliates increased approximately $567 million, of which $545 million was due to net flows. Change in Assets Under Management. On a consolidated basis, Boston Private had net inflows of funds from the investment managers and banks of approximately $1 billion for the full year related to organic growth and an increase of approximately $3 billion related to positive market appreciation for the year. Walter Pressey, President, said, "In 2007, Dalton Greiner appointed a new CEO, Bruce Geller, a new CIO, Jeff Baker, and adjusted their investment approach. These actions have positively impacted their results. Since June 2007, performance at DGHM has improved significantly. Virtually all of DGHM’s products are currently exceeding relative benchmarks for the 1, 3, and 10 year periods. The 1 year performance of DGHM’s flagship small cap value product ranks in the top 15% of its peer group. We believe that once the market recognizes Dalton Greiner’s performance, assets will follow.” Timothy L. Vaill, Chairman and Chief Executive Officer, said, "The Company continued its growth in revenues posting a nearly 22% increase for the fourth quarter as compared to 2006. I was gratified that this top line growth came despite a challenging macro-economic environment. We are inevitably going to have some credit issues and potentially some charge-offs at certain points in the economic cycle—we are not totally immune from that. But due to our business philosophy and sound credit culture we believe we will continue to compare favorably against the SNL Bank Index. I believe that the strength of our credit quality stems directly from our client-focused approach across all of our banking affiliates. Our people believe in uncompromising attention to detail and high quality, customized service. This approach has continued to stand us in good stead in the industry.” David J. Kaye, Boston Private’s Chief Financial Officer, noted, "I was pleased to see strong year over year operating earnings growth of 15% fueled by each one of our three segments, further validating our diversification strategy as a potent driver of our financial results. In addition, I believe we are well positioned as we enter 2008, as our net asset inflows of $545 million gave us one of the strongest quarters the Company has had in the last five years.” Boston Private has also announced a change in its corporate management structure. Executives have been named as industry segment leaders replacing the geographic alignment formerly in place. J. H. Cromarty, formerly the President of the Eastern Region, will head up the Wealth Advisory business; James D. Dawson, formerly the President of Boston Private Bank, has been named the leader for the Private Banking segment, effective April 1, 2008; and for the Investment Management business—Timothy G. Dalton, the founder of Dalton, Greiner, Hartman & Maher LLC, will serve on an interim basis while the Company seeks a permanent leader. Jonathan H. Parker and Walter Pressey were also named Vice Chairs of the holding company. CEO Vaill commented, "We have been reporting financial results internally on a business segment basis for several quarters, and these changes will give management the focus needed to increase our effectiveness and profitability while we continue to grow our national franchise. Importantly, the executive skills and relevant experience being brought to bear by these three individuals will result in a stronger competitive stance.” He concluded, "The banking and wealth management industries face challenges today. We believe this new management structure positions the Company to achieve its long-term objective to deliver organic growth and generate solid returns to our shareholders.” Dividend Payment Increased Concurrent with the release of the fourth quarter 2007 earnings, the Board of Directors of the Company declared a cash dividend to shareholders of $0.10 per share, reflecting the quarterly earnings performance. The record date for this dividend is February 1, 2008 and the payment date is February 15, 2008. This is an increase from the previous quarterly level by $0.01 per share and reflects the eighth annual increase since the Company instituted a dividend in 1999. Cash Earnings Boston Private calculates its non-GAAP cash earnings by adjusting net income to exclude net amortization of intangibles, goodwill and intangibles impairment, and the impact of certain non-cash share based compensation plans, and includes related tax benefits that result from purchase accounting that are deferred under GAAP. In addition to GAAP earnings, the Company believes its non-GAAP cash earnings report the additional value to shareholders generated by purchase accounting adjustments and the non-cash share based compensation plans. (A detailed reconciliation table is attached.) Operating Earnings Boston Private defines operating earnings to be net income excluding goodwill and intangibles impairment charges, and related taxes, if applicable. Conference Call Management will host a conference call to review the Company’s financial performance and business developments on January 24, 2008 at 9 a.m. Eastern time. Interested parties may join the call by dialing 800-867-0731 and the password required is "Boston”. The call will be simultaneously web cast and may be accessed on the Internet by linking through www.bostonprivate.com. A continuous telephone replay will be available beginning at 11:30 a.m. Eastern time. The replay telephone number is 800-388-9064. Boston Private Wealth Management Group Boston Private is a financial services company that owns independently operated affiliates located in key geographic regions of the U.S. Boston Private's affiliates offer private banking, wealth advisory and investment management services to the high net worth marketplace, selected businesses and institutions. The Company's strategy is to enter new markets primarily through selected acquisitions, and then expand its wealth management business by way of organic growth. It makes investments in mid-size firms in demographically attractive areas, forming geographic clusters that represent the firm's three key disciplines. Boston Private provides continuing assistance to its affiliates with strategic matters, marketing, compliance and operations. For more information about Boston Private, visit the Company's web site at www.bostonprivate.com This press release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America ("GAAP”). The Company’s management uses these non-GAAP measures in its analysis of the Company’s performance. These measures typically adjust GAAP performance measures to exclude the effects of net amortization of intangibles, tax benefits related to purchase accounting, stock options, goodwill and intangible impairment and ESPP expense. Because these items and their impact on the Company’s performance are difficult to predict, management believes that presentations of financial measures considering the impact of these items provide useful supplemental information that is essential to a proper understanding of the operating results of the Company’s businesses. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. Statements in this press release that are not historical facts are forward-looking statements as defined by United States securities laws. Forward-looking statements involve risks and uncertainties. These statements include, but are not limited to, prospects for long term financial performance, the impact on the Company’s results of market conditions and prevailing and future interest rates, prospects for growth in balance sheet assets and assets under management and advisory, and prospects for overall results over the long term. You should not place undue reliance on our forward-looking statements. You should exercise caution in interpreting and relying on forward-looking statements because they are subject to significant risks, uncertainties and other factors which are, in some cases, beyond Boston Private’s control and could cause actual results to differ materially from those set forth in the forward-looking statements. Factors that could cause actual results to differ materially from those set forth in the forward-looking statements include, among others, adverse conditions in the capital and debt markets and the impact of such conditions on Boston Private’s investment advisory activities; interest rate compression which may adversely impact net interest income; competitive pressures from other financial institutions which, together with other factors, may affect the Company’s growth and financial performance; the effects of national and local economic conditions; asset quality issues; and the risk that goodwill and intangibles recorded in the Company’s financial statements will become impaired or further impaired; as well as the other risks and uncertainties detailed in Boston Private's Annual Report on Form 10-K and other filings submitted to the Securities and Exchange Commission. Boston Private does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made. Boston Private Financial Holdings, Inc. Selected Financial Data (In Thousands, except share data) (Unaudited)                       December 31,   December 31, FINANCIAL DATA: 2007     2006     Total Balance Sheet Assets $ 6,828,519 $ 5,763,544 Stockholders' Equity 673,246 635,197 Tangible Capital: Boston Private Bank & Trust 180,815 160,639 Borel Private Bank & Trust 105,267 91,300 First Private Bank & Trust 53,513 48,388 Gibraltar Private Bank & Trust 90,157 78,692 Charter Bank 28,237 - Investment Securities 719,934 577,903 Goodwill 349,889 335,633 Intangible Assets 108,349 125,331   Commercial and Construction Loans 3,183,139 2,496,234 Residential Mortgage Loans 1,765,217 1,546,965 Home Equity and Other Consumer Loans   312,602       268,053   Total Loans 5,260,958 4,311,252   Loans Held for Sale 6,782 5,224 Allowance for Loan Losses and Off-Balance Sheet Risk 59,446 48,973 Non-performing Loans 35,601 9,999 Repossessed Assets, Net 475 550 Other Real Estate Owned, Net 711 - Total Non-performing Assets 36,787 10,549 Deposits 4,375,101 4,077,831 Borrowings 1,632,944 914,529   Book Value Per Share $ 17.97 $ 17.36 Market Price Per Share $ 27.08 $ 28.21   ASSETS UNDER MANAGEMENT AND ADVISORY:   Boston Private Bank & Trust $ 2,812,000 $ 2,369,000 Borel Private Bank & Trust 819,000 731,000 Gibraltar Private Bank & Trust 1,082,000 907,000 First Private Bank & Trust   25,000       5,000   Total Banks 4,738,000 4,012,000 Westfield Capital Management 13,140,000 10,102,000 Dalton, Greiner, Hartman, Maher & Co. 1,509,000 2,302,000 Anchor Capital Holdings 7,606,000 6,444,000 Boston Private Value Investors   803,000       961,000   Total Asset Managers 23,058,000 19,809,000 Sand Hill Advisors 1,186,000 1,252,000 RINET Company 1,457,000 1,262,000 KLS Professional Advisors Group 4,315,000 3,727,000 Bingham, Osborn, & Scarborough (1)   2,097,000       1,777,000   Total Wealth Advisors 9,055,000 8,018,000 Less: Inter-company Relationship   (286,000 )     (238,000 ) Consolidated Affiliate Assets Under Management and Advisory $ 36,565,000 $ 31,601,000   Coldstream Capital Management   1,188,000       1,090,000   Total Assets Under Management and Advisory $ 37,753,000 $ 32,691,000     FINANCIAL RATIOS:   Stockholders' Equity/Total Assets 9.86 % 11.02 % Non-performing Loans/Total Loans 0.68 % 0.23 % Allowance for Loan Losses and Off-Balance Sheet Risk/Total Loans 1.13 % 1.14 % Tangible Capital/ Tangible Assets 3.38 % 3.29 %         Three Months Ended   Twelve Months Ended December 31,   December 31, December 31, December 31, OPERATING RESULTS: 2007     2006   2007   2006     Net Interest Income - on a Fully Taxable Equivalent Basis (FTE) $ 53,045 $ 44,960 $ 195,995 $ 179,276 FTE Adjustment   1,837       1,575     7,016     5,763   Net Interest Income   51,208       43,385     188,979     173,513   Investment Management & Trust Fees: Westfield Capital Management 20,597 15,567 75,411 57,445 Boston Private Bank & Trust 4,240 3,578 15,804 13,818 Boston Private Value Investors 1,573 1,748 6,809 6,805 Borel Private Bank & Trust 1,229 1,130 4,853 4,326 Gibraltar Private Bank & Trust 2,149 1,764 8,095 6,479 Dalton, Greiner, Hartman, Maher & Co. 3,778 5,043 16,363 26,182 First Private Bank & Trust 42 5 116 5 Anchor Capital Holdings (8)   9,199       7,356     35,164     16,474   Total Investment Management & Trust Fees 42,807 36,191 162,615 131,534 Wealth Advisory Fees: RINET Company 2,184 2,135 9,097 8,181 Sand Hill Advisors 1,583 1,556 6,612 6,198 KLS Professional Advisors Group 3,910 3,336 14,665 12,375 Bingham, Osborn, & Scarborough (1) 3,386 - 5,657 - Other   53       55     201     204   Total Wealth Advisory Fees   11,116       7,082     36,232     26,958   Other Fees   2,876       2,312     11,135     7,843   Total Fees   56,799       45,585     209,982     166,335   Earnings in Equity Investments 2,120 1,515 3,782 3,034 Gain on Sale of Loans, Net 440 434 1,963 1,972                             Total Fees and Other Income   59,359       47,534     215,727     171,341   Total Revenue   110,567       90,919     404,706     344,854     Provision for Loan Losses   3,347       987     9,006     6,179     Salaries and Employee Benefits 52,940 41,611 196,524 163,438 Occupancy and Equipment 8,999 7,900 33,684 29,149 Professional Services 4,341 3,651 15,629 13,346 Marketing and Business Development 3,103 2,169 11,083 8,705 Contract Services and Processing 1,816 1,321 6,555 5,125 Amortization of Intangibles 3,699 3,874 14,484 13,649 Provision for Unfunded Loan Commitments 116 240 (1,328 ) 839 Other   5,244       4,272     18,366     16,198   Total Operating Expense   80,258       65,038     294,997     250,449   Income before Minority Interest, Income Taxes & Impairment 26,962 24,894 100,703 88,226 Impairment of Goodwill and Intangibles, net (7)   37,150       -     47,204     -   Income before Minority Interest and Income Taxes (10,188 ) 24,894 53,499 88,226 Minority Interest 1,511 1,020 4,842 3,699 Income Before Income Taxes (11,699 ) 23,874 48,657 84,527 Income Tax Expense, net of impairment   8,673       8,266     33,702     30,154   Net (Loss ) Income   ($20,372 )   $ 15,608   $ 14,955   $ 54,373                                 Three Months Ended Twelve Months Ended December 31, December 31, December 31, December 31, RECONCILIATION OF GAAP EARNINGS 2007     2006   2007   2006   TO CASH EARNINGS:   Net (Loss) Income (GAAP Basis) ($20,372 ) $ 15,608 $ 14,955 $ 54,373   Cash Basis Earnings (2) Book Amortization of Purchased Intangibles, net of tax 2,052 2,091 7,855 7,514 Cash Benefit of Tax Deductions from Purchased Intangibles & Goodwill 1,098 1,138 4,398 4,206 Impairment of Goodwill and Intangibles, net (7) 37,150 - 47,204 - Stock options and ESPP, net of tax   950       830     4,032     3,622   Total Cash Basis Adjustment   41,250       4,059     63,489     15,342   Cash Basis Earnings $ 20,878     $ 19,667   $ 78,444   $ 69,715                               Three Months Ended Twelve Months Ended December 31, December 31, December 31, December 31, 2007     2006   2007   2006   PER SHARE DATA: (In thousands, except per share data)   Calculation of Net Income for EPS:   Net (Loss) Income as reported and for basic EPS ($20,372 ) $ 15,608 $ 14,955 $ 54,373 Interest on convertible trust preferred securities, net of tax (6)   -       765     -     3,060   Net Income for diluted EPS ($20,372 ) $ 16,373 $ 14,955 $ 57,433   Interest on convertible trust preferred securities, net of tax for Cash EPS (6) 750 - 3,000 -   Calculation of average shares outstanding: Weighted average basic shares 37,058 36,064 36,732 35,453 Dilutive effect of: Stock Options, Stock Grants and Other (6) - 1,560 1,583 1,453 Convertible trust preferred securities (6)   -       3,183     -     3,183   Dilutive potential common shares - 4,743 1,583 4,636 Weighted average diluted shares for EPS 37,058 40,807 38,315 40,089 Weighted average diluted shares for Cash EPS 41,960 40,807 41,499 40,089   Earnings per Share: Basic ($0.55 ) $ 0.43 $ 0.41 $ 1.53 Diluted (6) ($0.55 ) $ 0.40 $ 0.39 $ 1.43   RECONCILIATION OF GAAP EPS TO CASH EPS (2): (on a Diluted Basis)   Earnings Per Share (GAAP Basis) ($0.55 ) $ 0.40 $ 0.39 $ 1.43 Cash Basis Adjustment $ 1.07     $ 0.10   $ 1.57   $ 0.39   Cash Basis Earnings Per Diluted Share $ 0.52     $ 0.50   $ 1.96   $ 1.82                                 Three Months Ended Twelve Months Ended December 31, December 31, December 31, December 31, 2007     2006   2007   2006   OPERATING RATIOS & STATISTICS:   Return on Average Equity -11.79 % 9.96 % 2.24 % 9.27 % Return on Average Assets -1.19 % 1.10 % 0.24 % 1.02 % Net Interest Margin 3.46 % 3.58 % 3.54 % 3.84 % Core Net Interest Margin(3) 3.70 % 3.85 % 3.79 % 4.12 % Total Fees and Other Income/Total Revenue 53.69 % 52.28 % 53.30 % 49.69 % Efficiency Ratio 69.59 % 67.29 % 69.42 % 68.27 % Loans Charged-off, Net of (Recoveries) $ 506 ($39 ) $ 78 $ 399     RECONCILIATION OF NIM TO CORE NIM   Net Interest Margin 3.46 % 3.58 % 3.54 % 3.84 % Effect of Trust Preferred & Acquisition Financing 0.24 % 0.27 % 0.25 % 0.28 % Core Net Interest Margin(3) 3.70 % 3.85 % 3.79 % 4.12 %     CASH OPERATING RATIOS:   Return on Average Equity (4) 12.09 % 12.54 % 11.74 % 11.89 % Return on Average Assets (5)   1.22 %     1.39 %   1.25 %   1.31 %   AVERAGE BALANCE SHEET: Three Months Ended   Three Months Ended   December 31, 2007   December 31, 2006   Average   Income/   Yield/ Average Income/   Yield/ AVERAGE ASSETS: Balance     Expense Rate   Balance   Expense Rate   Earning Assets Cash and investment $ 896,755 $ 11,095 4.93 % $ 725,252 $ 8,625 4.72 % Loans Commercial and Construction 3,109,737 60,046 7.59 % 2,411,415 47,432 7.74 % Residential Mortgage 1,754,303 26,589 6.06 % 1,535,098 21,819 5.69 % Home Equity and Other Consumer   305,759     5,721 7.32 %   273,830     5,607 7.78 % Total Earning Assets   6,066,554     103,451 6.74 %   4,945,595     83,483 6.66 % Allowance for Loan Losses (54,135 ) (42,634 )   Cash and due From Banks 67,231 55,612 Other Assets   741,956     693,800   TOTAL AVERAGE ASSETS $ 6,821,606   $ 5,652,373       AVERAGE LIABILITIES AND STOCKHOLDERS' EQUITY:   Interest-Bearing Liabilities:   Deposits: Savings and NOW $ 585,175 $ 3,068 2.08 % $ 459,196 $ 2,167 1.87 %   Money Market 1,870,804 15,731 3.34 % 1,878,662 15,439 3.26 % Certificate of Deposits   1,161,921     14,058 4.80 %   871,428     10,028 4.57 % Total Deposits 3,617,900 32,857 3.60 % 3,209,286 27,634 3.42 % Junior Sub-ordinated Debentures and Other Long-Term Debt 525,553 5,985 5.71 % 234,021 3,318 5.55 % FHLB Borrowings and Other   1,043,429     11,564 4.34 %   684,867     7,571 4.35 % Total Interest-Bearing Liabilities   5,186,882     50,406 3.84 %   4,128,174     38,523 3.49 % Non-interest Bearing Demand Deposits 794,829 741,198 Payables and Other Liabilities   148,943       155,861   Total Liabilities 6,130,654 5,025,233 Stock-holders' Equity   690,952       627,140   TOTAL AVERAGE LIABILITIES & STOCKHOLDERS' EQUITY $ 6,821,606   $ 5,652,373     Net Interest Income (FTE)         $ 53,045           $ 44,960                                     AVERAGE BALANCE SHEET: Twelve Months Ended Twelve Months Ended   December 31, 2007   December 31, 2006   Average Income/ Yield/ Average Income/ Yield/ AVERAGE ASSETS: Balance     Expense Rate   Balance   Expense Rate   Earning Assets Cash and investment $ 774,907 $ 38,319 4.94 % $ 701,653 $ 30,824 4.39 % Loans Commercial and Construction 2,801,717 222,176 7.93 % 2,226,396 172,002 7.70 % Residential Mortgage 1,670,145 95,296 5.71 % 1,466,182 82,255 5.61 % Home Equity and Other Consumer   286,024     21,978 7.68 %   263,045     20,714 7.75 % Total Earning Assets   5,532,793     377,769 6.83 %   4,657,276     305,795 6.55 % Allowance for Loan Losses (50,333 ) (40,101 ) Cash and due From Banks 74,503 60,681 Other Assets   703,517     633,886   TOTAL AVERAGE ASSETS $ 6,260,480   $ 5,311,742       AVERAGE LIABILITIES AND STOCKHOLDERS' EQUITY:   Interest-Bearing Liabilities: Deposits: Savings and NOW $ 564,758 $ 11,995 2.12 % $ 453,587 $ 6,754 1.49 % Money Market 1,864,603 62,722 3.36 % 1,768,655 49,002 2.77 % Certificate of Deposits   1,011,244     48,428 4.79 %   767,736     31,506 4.10 % Total Deposits 3,440,605 123,145 3.58 % 2,989,978 87,262 2.92 % Junior Sub-ordinated Debentures and Other Long-Term Debt 365,845 18,361 5.67 % 234,021 13,167 5.63 % FHLB Borrowings and Other   895,963     40,268 4.49 %   624,955     26,090 4.13 % Total Interest-Bearing Liabilities   4,702,413     181,774 3.87 %   3,848,954     126,519 3.28 % Non-interest Bearing Demand Deposits 748,538 735,224 Payables and Other Liabilities   141,414       141,098   Total Liabilities 5,592,365 4,725,276 Stock-holders' Equity   668,115       586,466   TOTAL AVERAGE LIABILITIES & STOCKHOLDERS' EQUITY $ 6,260,480     $ 5,311,742     Net Interest Income (FTE)         $ 195,995           $ 179,276     Private Banking Data - Period End Data   December 31,   December 31,     2007   2006 Loans: Boston Private Bank & Trust $ 2,063,190 $ 1,784,579 Borel Private Bank & Trust 1,047,545 888,147 First Private Bank & Trust 544,849 417,852 Gibraltar Private Bank & Trust 1,353,617 1,216,977 Charter Bank 246,807 -   Deposits: Boston Private Bank & Trust 1,843,389 1,822,304 Borel Private Bank & Trust 1,000,264 865,025 First Private Bank & Trust 504,587 459,413 Gibraltar Private Bank & Trust 832,818 952,387 Charter Bank   221,477       -         Three Months Ended December 31, December 31, 2007   2006   NIM: Boston Private Bank & Trust 2.94 % 3.09 % Borel Private Bank & Trust 4.27 % 4.64 % First Private Bank & Trust 5.47 % 5.68 % Gibraltar Private Bank & Trust 3.62 % 3.90 % Charter Bank 4.71 % -               December 31, September 30, 2007   2007 FINANCIAL DATA:   Total Balance Sheet Assets $ 6,828,519 $ 6,595,539 Stockholders' Equity 673,246 690,303 Tangible Capital: Boston Private Bank & Trust 180,815 172,652 Borel Private Bank & Trust 105,267 102,305 First Private Bank & Trust 53,513 51,257 Gibraltar Private Bank & Trust 90,157 86,907 Charter Bank 28,237 26,653 Investment Securities 719,934 620,821 Goodwill 349,889 365,862 Intangible Assets 108,349 124,442   Commercial and Construction Loans 3,183,139 2,974,098 Residential Mortgage Loans 1,765,217 1,761,538 Home Equity and Other Consumer Loans   312,602       302,360   Total Loans 5,260,958 5,037,996   Loans Held for Sale 6,782 2,959 Allowance for Loan Losses and Off-Balance Sheet Risk 59,446 56,161 Non-performing Loans 35,601 25,574 Repossessed Assets, Net 475 475 Other Real Estate Owned 711 2,116 Total Non-performing Assets 36,787 28,165 Deposits 4,375,101 4,310,908 Borrowings 1,632,944 1,465,000   Book Value Per Share $ 17.97 $ 18.46 Market Price Per Share $ 27.08 $ 27.84   ASSETS UNDER MANAGEMENT AND ADVISORY:   Boston Private Bank & Trust $ 2,812,000 $ 2,784,000 Borel Private Bank & Trust 819,000 740,000 Gibraltar Private Bank & Trust 1,082,000 1,046,000 First Private Bank & Trust   25,000       22,000   Total Banks 4,738,000 4,592,000 Westfield Capital Management 13,140,000 12,306,000 Dalton, Greiner, Hartman, Maher & Co. 1,509,000 1,780,000 Anchor Capital Holdings 7,606,000 7,648,000 Boston Private Value Investors   803,000       870,000   Total Asset Managers 23,058,000 22,604,000 Sand Hill Advisors 1,186,000 1,205,000 RINET Company 1,457,000 1,398,000 KLS Professional Advisors Group 4,315,000 4,355,000 Bingham, Osborn, & Scarborough (1)   2,097,000       2,098,000   Total Wealth Advisors 9,055,000 9,056,000 Less: Inter-company Relationship   (286,000 )     (254,000 ) Consolidated Affiliate Assets Under Management and Advisory 36,565,000 35,998,000   Coldstream Capital Management   1,188,000       1,188,000   Total Unconsolidated Assets Under Management and Advisory $ 37,753,000 $ 37,186,000   FINANCIAL RATIOS:   Stockholders' Equity/Total Assets 9.86 % 10.47 % Nonperforming Loans/Total Loans 0.68 % 0.51 % Allowance for Loan Losses and Off-Balance Sheet Risk/Total Loans 1.13 % 1.11 % Tangible Capital/Tangible Assets   3.38 %     3.28 %         Three Months Ended December 31,   September 30, OPERATING RESULTS: 2007   2007   Net Interest Income - on a Fully Taxable Equivalent Basis (FTE) $53,045 $51,969 FTE Adjustment 1,837     1,821   Net Interest Income 51,208     50,148   Investment Management & Trust Fees: Westfield Capital Management 20,597 19,405 Boston Private Bank & Trust 4,240 4,021 Boston Private Value Investors 1,573 1,737 Borel Private Bank & Trust 1,229 1,256 Gibraltar Private Bank & Trust 2,149 2,051 Dalton, Greiner, Hartman, Maher & Co. 3,778 4,079 First Private Bank & Trust 42 25 Anchor Capital 9,199     9,229   Total Investment Management & Trust Fees 42,807 41,803 Wealth Advisory Fees RINET Company 2,184 2,403 Sand Hill Advisors 1,583 1,629 KLS Professional Advisors Group 3,910 3,760 Bingham, Osborn, & Scarborough (1) 3,386 2,271 Other 53     55   Total Wealth Advisory Fees 11,116     10,118   Other Fees 2,876     2,783   Total Fees 56,799     54,704   Earnings in Equity Investments 2,120 398 Gain on Sale of Loans, Net 440 296   Total Fees and Other Income 59,359     55,398   Total Revenue 110,567     105,546     Provision for Loan Losses 3,347     3,738     Salaries and Benefits 52,940 50,312 Occupancy and Equipment 8,999 8,708 Professional Services 4,341 3,953 Marketing and Business Development 3,103 2,548 Contract Services and Processing 1,816 1,696 Amortization of Intangibles 3,699 3,728 Provision for Unfunded Loan Commitments 116 (2,029 ) Other 5,244     4,640   Total Operating Expense 80,258     73,556   Income before Minority Interest, Income Taxes & Impairment 26,962 28,252 Impairment of Goodwill and Intangibles, net (7) 37,150 - Income before Minority Interest and Income Taxes (10,188 ) 28,252 Minority Interest 1,511 1,509 Income Before Income Taxes (11,699 ) 26,743 Income Tax Expense 8,673     9,326   Net (Loss) Income ($20,372 )   $17,417           Three Months Ended December 31,   September 30, RECONCILIATION OF GAAP EARNINGS 2007     2007 TO CASH EARNINGS (2):   Net (Loss) Income (GAAP Basis) ($20,372 ) $17,417   Cash Basis Earnings Book Amortization of Purchased Intangibles, net of tax 2,052 2,002 Cash Benefit of Tax Deductions from Purchased Intangibles & Goodwill 1,098 1,112 Impairment of Goodwill and Intangibles, net (7) 37,150 - Stock options and ESPP, net of tax 950     1,036 Total Cash Basis Adjustment 41,250     4,150 Cash Basis Earnings $20,878     21,567         Three Months Ended December 31,   September 30, 2007     2007   PER SHARE DATA: (In thousands, except per share data)   Calculation of Net Income for EPS:   Net (Loss )Income as reported and for basic EPS ($20,372 ) $17,417 Interest on convertible trust preferred securities, net of tax (6) -     750   Net Income for diluted EPS ($20,372 ) $18,167   Interest on convertible trust preferred securities, net of tax for Cash EPS (6) 750 -   Calculation of Average Shares Outstanding: Weighted average basic shares 37,058 36,976 Dilutive effect of: Stock Options, Stock Grants, and Other (6) - 1,463 Convertible trust preferred securities (6) -     3,184   Dilutive potential common shares - 4,647 Weighted average diluted shares for EPS 37,058 41,623 Weighted average diluted shares for Cash EPS 41,960 41,623   Earnings per Share: Basic ($0.55 ) $0.47 Diluted ($0.55 ) $0.44   RECONCILIATION OF GAAP EPS TO CASH EPS (2): (on a Diluted Basis)   Earnings Per Share (GAAP Basis) ($0.55 ) $0.44 Cash Basis Adjustment $1.07     $0.10   Cash Basis Earnings Per Diluted Share $0.52     $0.54     OPERATING RATIOS & STATISTICS:   Return on Average Equity -11.79 % 10.29 % Return on Average Assets -1.19 % 1.07 % Net Interest Margin 3.46 % 3.59 % Core Net Interest Margin (3) 3.70 % 3.83 % Total Fees and Other Income/Total Revenue 53.69 % 52.49 % Efficiency Ratio 69.59 % 67.36 % Loans Charged-off, Net of (Recoveries) $506 $90     RECONCILIATION OF NIM TO CORE NIM Net Interest Margin 3.46 % 3.59 % Effect of Trust Preferred , Net 0.24 % 0.24 % Core Net Interest Margin (3) 3.70 %   3.83 % AVERAGE BALANCE SHEET: Three Months Ended   Three Months Ended               December 31, 2007 September 30, 2007 Average Income/ Yield/ Average Income/ Yield/ AVERAGE ASSETS: Balance   Expense   Rate Balance Expense   Rate Earning Assets Cash and investment $896,755 $11,095 4.93% $775,588 $8,631 5.01% Loans Commercial and Construction 3,109,737 60,046 7.59% 2,922,801 57,117 7.79% Residential Mortgage 1,754,303 26,589 6.06% 1,733,467 26,383 6.09% Home Equity and Other Consumer 305,759 5,721 7.32% 296,020 6,025 7.94% Total Earning Assets 6,066,554   103,451 6.74% 5,727,876 98,156 7.20% Allowance for Loan Losses (54,135) (52,170) Cash and due From Banks 67,231 80,293 Other Assets 741,956 738,978 TOTAL AVERAGE ASSETS $6,821,606 $6,494,977     AVERAGE LIABILITIES AND STOCKHOLDERS' EQUITY:   Interest-Bearing Liabilities: Deposits: Savings and NOW $585,175 $3,068 2.08% $563,174 $2,983 2.10% Money Market 1,870,804 15,731 3.34% 1,836,110 15,554 3.36% Certificate of Deposits 1,161,921 14,058 4.80% 1,067,439 13,067 4.86% Total Deposits 3,617,900 32,857 3.60% 3,466,723 31,604 3.62% Junior Subordinated Debentures and Other Long-Term Debt 525,553 5,985 5.71% 507,174 5,784 5.47% FHLB Borrowings and Other 1,043,429 11,564 4.34% 932,362 10,620 4.44% Total Interest-Bearing Liabilities 5,186,882 50,406 3.84% 4,906,259 48,008 4.47% Non-interest Bearing Demand Deposits 794,829 762,768 Payables and Other Liabilities 148,943   148,818 Total Liabilities 6,130,654 5,817,845 Stockholders' Equity 690,952   677,132 TOTAL AVERAGE LIABILITIES & STOCKHOLDERS' EQUITY $6,821,606 $6,494,977   Net Interest Income $53,045 $50,148 Private Banking Data - Period End Data   December 31,   September 30,     2007   2007 Loans: Boston Private Bank & Trust $2,063,190 $1,959,709 Borel Private Bank & Trust 1,047,545 979,417 First Private Bank & Trust 544,849 521,730 Gibraltar Private Bank & Trust 1,353,617 1,326,385 Charter Bank 246,807 248,710   Deposits: Boston Private Bank & Trust 1,843,389 1,825,365 Borel Private Bank & Trust 1,000,264 926,085 First Private Bank & Trust 504,587 527,171 Gibraltar Private Bank & Trust 832,818 847,070 Charter Bank 221,477     216,630         Three Months Ended December 31, September 30, 2007   2007 NIM: Boston Private Bank & Trust 2.94 % 3.04 % Borel Private Bank & Trust 4.27 % 4.43 % First Private Bank & Trust 5.47 % 5.67 % Gibraltar Private Bank & Trust 3.62 % 3.77 % Charter Bank 4.71 % 5.10 % SAME AFFILIATES   Growth Excluding Acquisitions       As Reported     Acquisitions   Same Affiliates December 31, December 31, December 31, December 31, FINANCIAL DATA: 2007   2006 2007 2007   Total Balance Sheet Assets $6,828,519 $5,763,544 $427,616 $6,400,903 Stockholders' Equity 673,246 635,197 44,373 628,873 Tangible Capital: Boston Private Bank & Trust 180,815 160,639 - 180,815 Borel Private Bank & Trust 105,267 91,300 - 105,267 First Private Bank & Trust 53,513 48,388 - 53,513 Gibraltar Private Bank & Trust 90,157 75,340 - 90,157 Charter Bank 28,237 - 28,237 - Investment Securities 719,934 577,903 50,662 669,272 Goodwill 349,889 335,633 49,535 300,354 Intangible Assets 108,349 125,331 6,647 101,702   Commercial and Construction Loans 3,183,139 2,496,234 218,117 2,965,022 Residential Mortgage Loans 1,765,217 1,546,965 24,526 1,740,691 Home Equity and Other Consumer Loans 312,602     268,053   4,164 308,438   Total Loans 5,260,958 4,311,252 246,807 5,014,151   Loans Held for Sale 6,782 5,224 - 6,782 Allowance for Loan Losses and Off-Balance Sheet Risk 59,446 48,973 2,704 56,742 Non-performing Loans 35,601 9,999 - 35,601 Repossessed Assets, Net 475 550 - 475 Other Real Estate Owned, Net 711 - - 711 Total Non-performing Assets 36,787 10,549 - 36,787 Deposits 4,375,101 4,077,831 221,477 4,153,624 Borrowings 1,632,944 914,529 102,410 1,530,534   ASSETS UNDER MANAGEMENT AND ADVISORY:   Boston Private Bank & Trust $2,812,000 $2,369,000 - $2,812,000 Borel Private Bank & Trust 819,000 731,000 - 819,000 Gibraltar Private Bank & Trust 1,082,000 907,000 - 1,082,000 First Private Bank & Trust 25,000     5,000   - 25,000 Total Banks 4,738,000 4,012,000 - 4,738,000 Westfield Capital Management 13,140,000 10,102,000 - 13,140,000 Dalton, Greiner, Hartman, Maher & Co. 1,509,000 2,302,000 - 1,509,000 Anchor Capital Holdings 7,606,000 6,444,000 - 7,606,000 Boston Private Value Investors 803,000     961,000   - 803,000 Total Asset Managers 23,058,000 19,809,000 - 23,058,000 Sand Hill Advisors 1,186,000 1,252,000 - 1,186,000 RINET Company 1,457,000 1,262,000 - 1,457,000 KLS Professional Advisors Group 4,315,000 3,727,000 - 4,315,000 Bingham, Osborn, & Scarborough (1) 2,097,000     1,777,000   - 2,097,000 Total Wealth Advisors 9,055,000 8,018,000 - 9,055,000 Less: Inter-company Relationship (286,000 )   (238,000 ) - (286,000 ) Consolidated Affiliate Assets Under Management and Advisory $36,565,000 $31,601,000 - 36,565,000   Coldstream Capital Management 1,188,000     1,090,000   - 1,188,000   Total Assets Under Management and Advisory $37,753,000 $32,691,000 - $37,753,000               Three Months Ended As Reported Acquisitions Same Affiliates December 31, December 31, December 31, December 31, OPERATING RESULTS 2007   2006   2007   2007   Net Interest Income - on a Fully Taxable Equivalent Basis (FTE) $53,045 $44,960 $3,528 $49,517 FTE Adjustment 1,837     1,575   - 1,837   Net Interest Income 51,208     43,385   3,528 47,680   Investment Management & Trust Fees: Westfield Capital Management 20,597 15,567 - 20,597 Boston Private Bank & Trust 4,240 3,578 - 4,240 Boston Private Value Investors 1,573 1,748 - 1,573 Borel Private Bank & Trust 1,229 1,130 - 1,229 Gibraltar Private Bank & Trust 2,149 1,764 - 2,149 Dalton, Greiner, Hartman, Maher & Co. 3,778 5,043 - 3,778 First Private Bank & Trust 42 5 - 42 Anchor Capital Holdings 9,199     7,356   - 9,199   Total Investment Management & Trust Fees 42,807 36,191 - 42,807 Wealth Advisory Fees: RINET Company 2,184 2,135 - 2,184 Sand Hill Advisors 1,583 1,556 - 1,583 KLS Professional Advisors Group 3,910 3,336 - 3,910 Bingham, Osborn, & Scarborough (1) 3,386 - - 3,386 Other 53     55   - 53   Total Wealth Advisory Fees 11,116     7,082   - 11,116   Other Fees 2,876     2,312   180 2,696   Total Fees 56,799     45,585   180 56,619   Earnings in Equity Investments 2,120 1,515 - 2,120 Gain on Sale of Loans, Net 440 434 - 440             Total Fees and Other Income 59,359     47,534   180 59,179   Total Revenue 110,567     90,919   3,708 106,859     Provision for Loan Losses 3,347     987   51 3,296     Salaries and Employee Benefits 52,940 41,611 1,611 51,329 Occupancy and Equipment 8,999 7,900 291 8,708 Professional Services 4,341 3,651 151 4,190 Marketing and Business Development 3,103 2,169 79 3,024 Contract Services and Processing 1,816 1,321 76 1,740 Amortization of Intangibles 3,699 3,874 272 3,427 Provision for Unfunded Loan Commitments 116 240 - 116 Other 5,244     4,272   360 4,884   Total Operating Expense 80,258     65,038   2,840 77,418   Income before Minority Interest, Income Taxes & Impairment 26,962 24,894 817 26,145 Impairment of Goodwill and Intangibles, net (7) 37,150 - - 37,150 Income before Minority Interest and Income Taxes (10,188 ) 24,894 817 (11,005 ) Minority Interest 1,511 1,020 - 1,511 Income Before Income Taxes (11,699 ) 23,874 817 (12,516 ) Income Tax Expense 8,673     8,266   192 8,481   Net (Loss) Income ($20,372 )   $15,608   $625 ($20,997 ) Twelve Months Ended As Reported Acquisitions Same Affiliates December 31, December 31, December 31, December 31, OPERATING RESULTS: 2007   2006 2007 2007   Net Interest Income - on a Fully Taxable Equivalent Basis (FTE) $195,995 $179,276 $7,360 $188,635 FTE Adjustment 7,016     5,763   - 7,016   Net Interest Income 188,979     173,513   7,360 181,619   Investment Management & Trust Fees: Westfield Capital Management 75,411 57,445 - 75,411 Boston Private Bank & Trust 15,804 13,818 - 15,804 Boston Private Value Investors 6,809 6,805 - 6,809 Borel Private Bank & Trust 4,853 4,326 - 4,853 Gibraltar Private Bank & Trust 8,095 6,479 - 8,095 Dalton, Greiner, Hartman, Maher & Co. 16,363 26,182 - 16,363 First Private Bank & Trust 116 - - 116 Anchor Capital Holdings (8) 35,164     16,474   13,908 21,256   Total Investment Management & Trust Fees 162,615 131,529 13,908 148,707 Wealth Advisory Fees: RINET Company 9,097 8,181 - 9,097 Sand Hill Advisors 6,612 6,198 - 6,612 KLS Professional Advisors Group 14,665 12,375 - 14,665 Bingham, Osborn, & Scarborough (1) 5,657 - - 5,657 Other 201     204   - 201   Total Wealth Advisory Fees 36,232     26,958   - 36,232   Other Fees 11,135     7,843   465 10,670   Total Fees 209,982     166,330   14,373 195,609   Earnings in Equity Investments 3,782 3,034 - 3,782 Gain on Sale of Loans, Net 1,963 1,972 - 1,963             Total Fees and Other Income 215,727     171,336   14,373 201,354   Total Revenue 404,706     344,849   21,733 382,973     Provision for Loan Losses 9,006     6,179   170 8,836     Salaries and Employee Benefits 196,524 163,438 10,298 186,226 Occupancy and Equipment 33,684 29,149 892 32,792 Professional Services 15,629 13,346 344 15,285 Marketing and Business Development 11,083 8,705 443 10,640 Contract Services and Processing 6,555 5,125 239 6,316 Amortization of Intangibles 14,484 13,649 1,915 12,569 Provision for Unfunded Loan Commitments (1,328 ) 839 - (1,328 ) Other 18,366     16,198   897 17,469   Total Operating Expense 294,997     250,449   15,028 279,969   Income before Minority Interest, Income Taxes & Impairment 100,703 88,221 6,535 94,168 Impairment of Goodwill and Intangibles, net (7) 47,204 - - 47,204 Income before Minority Interest and Income Taxes 53,499 88,221 6,535 46,964 Minority Interest 4,842 3,699 891 3,951 Income Before Income Taxes 48,657 84,522 5,644 43,013 Income Tax Expense 33,702     30,154   2,104 31,598   Net Income $14,955     $54,368   $3,540 $11,415   (1) The Company went from a minority to majority ownership of Bingham, Osborn, and Scarborough in Q3 2007. Prior period financial information is included with Earnings in Equity Investments. Prior period AUM data is shown for comparative purposes as being included with the consolidated Company. (2) The Company calculates its cash earnings by adjusting net income to exclude the amortization of the purchased intangibles (net of tax), the tax benefit on the portion of the purchase price allocated to goodwill, which is deductible over a 15 year life, impairment, and certain non-cash share based compensation plans (net of tax). The tax savings are deferred under GAAP accounting but are included in cash earnings since the tax savings (lower tax payment) will be retained unless the acquired company is sold. The Company uses certain non-GAAP financial measures, such as Cash Earnings, to provide information for investors to effectively analyze financial trends of ongoing business activities. (3) The Company defines Core Net Interest Margin as Net Interest Margin excluding the interest expense on the Junior Subordinated Debentures and $30 million of the convertible bond that was used for the purchase of Charter Bank. The Company utilizes Trust Preferred Securities to assist in the funding of acquisitions and believes it is useful to compare Net Interest Margin excluding the impact of this acquisition funding vehicle. (4) The Company calculates Return on Average Equity on a cash basis as Cash Basis Earnings divided by Average Equity. (5) The Company calculates Return on Average Assets on a cash basis as Cash Basis Earnings divided by Average Assets. (6) The convertible trust preferred debt, stock options and restricted shares were anti-dilutive for the 4th quarter of 2007 and therefore excluded from diluted earnings per share. The convertible trust preferred was also anti-dilutive for the year, whereas the restricted stock and stock options were dilutive. The separate evaluations for quarterly and year-to-date computations may result in year-to-date earnings per share that do not equal the sum of the quarterly earnings per share. (7) Since Gibraltar Private Bank and Trust ("Gibraltar") was acquired pursuant to a tax-free reorganization, all goodwill generated by the acquisition of Gibraltar is not deductible for tax purposes. As a result, there is no tax benefit attributable to the $29.1 million impairment charge related to Gibraltar. The acquisition of Dalton, Greiner, Hartman, Maher and Co ("DGHM") was acquired pursuant to a taxable transaction, all goodwill generated by the acquisition of DGHM is generally deductible for tax purposes. As a result, there is a $13.6 million tax benefit attributable to the $31.8 million impairment charge related to DGHM, which results in an impairment charge, net, of $18.2 million. (8) The Company acquired Anchor Capital Holdings on June 1, 2006.