Exhibit 99.1

FOR IMMEDIATE RELEASE	CONTACT:	Walter M. Pressey
		President & CFO
		(617) 912-1921
		www.bostonprivate.com

BOSTON PRIVATE REPORTS SOLID SECOND QUARTER
RESULTS

Increase in New Business Fuels Growth

Boston, MA, July 14, 2003 – Boston Private Financial Holdings, Inc. (Nasdaq: BPFH) today announced results for the quarter ended June 30, 2003. Net income for the second quarter 2003 was $0.32 per diluted share, which includes approximately $0.07 per share related to the settlement of reserves taken in the first quarter of 2003 for the enactment of a retroactive Massachusetts tax increase and a reduction of $0.01 per share for additional lease abandonment costs. Net income, excluding both of these special items, was $0.26 per share, as compared to net income of $0.27 for the second quarter of 2002 and $.024 for the first quarter of 2003. The Company also announced the continuation of its quarterly cash dividend to shareholders of $0.05 per share.

For the three months ending June 30, 2003, Boston Private reported revenues of $32.5 million, an increase of 12% over the $29.0 million in second quarter of 2002. Net income for the quarter was $7.5 million compared to $6.3 million for the same quarter a year ago. The Company’s average balance sheet assets increased 25% to approximately $2.0 billion, compared to $1.6 billion for the second quarter of 2002.

Assets under management (AUM) as of June 30, 2003 were $8.3 billion, a 27% increase over the same 2002 period and a 21% increase over the $6.8 billion recorded at March 31, 2003. New and existing clients added $382 million of net new assets under management during the quarter, a 6% increase. Market appreciation for the quarter contributed $916 million in additional assets, a 13% increase. Including the benefit of market appreciation, all of our subsidiaries recorded growth in the second quarter, led by Westfield Capital Management and RINET.

Timothy L. Vaill, Chairman and Chief Executive Officer, said, “We are encouraged by our results for the first half of 2003 and remain focused on gaining new client relationships while expanding and refining the Company’s services and product offerings. Achieving strong organic growth and diversifying our business lines through regional diversification remain key drivers of our continued success.”

Net Interest Income Increases Despite Continued Margin Compression

Net interest income increased $1.3 million to $17.7 million from $16.4 million for the same period in 2002 on a fully taxable equivalent basis. This was accomplished through organic growth of loans and deposits, offset in part by a decrease in the Company’s net interest margin to 3.70%, down from 4.30% a year ago and 3.77% last quarter. Increased business volume added approximately $3.2 million of net interest income. This more than offset the effect of margin compression which decreased net interest income approximately $1.9 million. Fees and other income for the quarter were up 18% to $15.5 million, or 48% of total revenues, compared to the same quarter a year ago. Investment gains were $0.4 million compared to $0.1 million in the second quarter of 2002. Unrealized gains on investments were $4.5 million, net of taxes at June 30, 2003, compared to $4.8 million at year end 2002.

The net income adjustment of approximately $1.6 million or $0.07 per share resulted from reaching a settlement agreement with the Commonwealth of Massachusetts related to a reserve of $3.0 million or $0.13 per share, recorded in the first quarter of 2003. This reserve was established in response to newly enacted legislation that retroactively disallows the deduction for dividends received from a real estate investment trust subsidiary

The net income reduction of $.01 per diluted share, or $226,000, net of tax, for lease abandonment costs was caused by reaching agreement with the landlord in early July 2003 to purchase the lease and terminate the Company’s lease agreement in Menlo Park, California. This agreement will extinguish the reserve established in the first quarter of 2003.

Mr. Vaill stated “This quarter was challenging due to a decline in interest rates which compressed our net interest margin and held growth of net interest income to 4% over the first quarter of 2003 and 7% compared to the second quarter of 2002. Our investment management fees increased 16% in the second quarter of 2003 compared to the first quarter of 2003 and 15% compared to the second quarter of 2002. This was fueled by both net new business and improving stock market valuations. After three challenging years in the equity markets, our investment management business results were bolstered by this year’s market upturn especially in the second quarter,”

“Boston Private’s results have shown that our strategy of business line diversification across private banking, investment management and financial planning enables us to reap the benefits of strengthening equity markets while in the midst of a low interest rate environment.” Mr. Vaill concluded.

Loan Portfolio Growth and Quality Remain Strong

Boston Private’s commercial lending portfolio achieved strong growth in the quarter. As of June 30, 2003, commercial loans, which averaged approximately $595,000 per loan, totaled $764 million, up 28% over the second quarter of last year. The residential mortgage loan portfolio, which averaged $513,000 per loan, totaled $575 million, up 2% over second quarter 2002. Combined, the total loan portfolio grew 14% over last year, totaling $1.4 billion at June 30, 2003. In addition to the residential mortgage loans

recorded on the books, approximately $91 million of mortgage loans were underwritten and sold during the quarter producing fee income of $0.8 million.

Mr. Vaill said, “Our jumbo mortgage loan originations have hit record highs this year, but we have actively pursued sales of fixed rate product to reduce balance sheet risk. Thus our portfolio growth is modest this period.”

Strategic Developments

On May 2, 2003 Boston Private announced it has signed a definitive agreement to acquire an 80% interest in Dalton, Greiner, Hartman, Maher & Co. (DGHM) of New York, NY. DGHM, founded in 1990 and managing approximately $2.2 billion of client assets, is a value style manager specializing in small-cap equities. The remaining 20% interest in the firm will be retained by members of the DGHM management team. This transaction is expected to be immediately accretive on a cash basis to BPFH and accretive on a GAAP basis within the first 12- month period.

Last week, Boston Private announced that it has signed a definitive agreement to acquire First State Bancorp, the holding company of First State Bank of California, a $174 million commercial bank situated in Los Angeles County. First State Bank of California has 20 years of banking experience and provides a wide range of commercial, depository, and consumer banking services to its upscale customers. In the merger, Boston Private will acquire 100% of First State’s common stock with an aggregate transaction value of approximately $26.6 million.

Both of these transactions are subject to several conditions, including the approval by state and federal regulators, and in the case of First State Bancorp, the approval of its shareholders.

Boston Private announced earlier in the second quarter, that its wholly-owned subsidiary, Boston Private Bank & Trust Company, entered into an informal agreement with the Massachusetts Division of Banks and the FDIC to enhance its Bank Secrecy Act controls and procedures. Achievement of these improvements is a significant consideration for regulatory approval of the above mentioned acquisitions.

Dividend Payment Continues

Concurrent with the release of the second quarter 2003 earnings, the Board of Directors of Boston Private Financial Holdings declared a cash dividend to shareholders of $0.05 per share. The record date for this dividend is August 1, 2003 and the payment date will be August 15, 2003.

Outlook for 2003

When asked about the Company’s outlook for the remainder of 2003, Walter M. Pressey, President and Chief Financial Officer commented, “Although net interest margin compression continues to affect the banking sector, I am pleased that the organic growth of our balance sheet was sufficient to more than off set the pressure this quarter.”

Mr. Pressey continued, “We are focused on the growth initiatives that will expand our deposit and loan business and increase our assets under management. As market conditions improve, we believe we are well positioned to benefit from our growth strategies and over the long-term, deliver strong results for our shareholders.”

Conference Call

Management will host a conference call to review the Company’s financial performance and business developments on Monday, July 14th at 4:30 pm eastern standard time. Interested parties may join the call by dialing 800-867-0731. 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, www.prnewswire.com , or Yahoo! Finance. A continuous telephone replay will be available beginning Monday at 6:30 pm. The replay telephone number is 800-388-9064.

About Boston Private Financial Holdings

Established in 1987, Boston Private Financial Holdings, Inc. (Nasdaq: BPFH) offers a full range of high-touch wealth management services. Boston Private’s assets include six operating companies located in New England and California, offering individualized wealth management, financial planning, investment management, and private banking services to its domestic and international clientele. The subsidiaries include: in New England, Boston Private Bank & Trust Company, Westfield Capital Management Company, LLC, RINET Company LLC, and Boston Private Value Investors, Inc. and in Northern California, Sand Hill Advisors and Borel Private Bank & Trust Company. Boston Private also has a minority holding in Coldstream Holdings, Inc., the parent company of Coldstream Capital Management, Inc. based in Bellevue, Washington. Boston Private manages approximately $8.3 billion in client assets, and has balance sheet assets of approximately $2.0 billion. It is a member of the Standard & Poor’s 600 Index and is included on the Nasdaq Financial-100 Index®.

New England Region

Boston Private Bank & Trust Company specializes in providing private banking and investment services to individuals, their families and businesses. It has an investment management emphasis on mid to large cap equity and actively managed fixed income portfolios. It also offers commercial and residential lending services including a Second Time Homebuyer Program. Under its Accessible Banking Program, the Bank is an active provider of real estate financing for affordable housing, economic development and small businesses.

Westfield Capital Management specializes in separately managed domestic growth equity portfolios in all areas of the capitalization spectrum. All members of Westfield’s Investment Committee conduct rigorous fundamental research in analyzing company growth prospects for investment. Westfield’s clients consist of pension funds,

endowments and foundations, mutual funds as well as high net worth individuals. Westfield also acts as the investment manager of several limited partnerships.

RINET Company, LLC provides fee-only financial planning, tax planning and investment management services to high net worth individuals and their families. Its capabilities include tax planning and preparation, asset allocation, estate planning, charitable planning, planning for employment benefits, including 401(k) plans, alternative investment analysis and mutual fund investing.

Boston Private Value Investors, Inc. manages equity and fixed income accounts for high net worth clients and selected institutions primarily in New England and the Northeast. The firm is a large cap value-style investor with its headquarters in Concord, New Hampshire and an office at Ten Post Office Square in Boston, Massachusetts.

Northern California Region

Borel Private Bank & Trust Company serves the financial needs of individuals, their families and their businesses in Northern California. Borel conducts commercial and private banking, which includes accepting demand, savings and time deposits and making commercial, real estate and consumer loans. Borel offers various savings plans as well as other customary banking services and facilities. Additionally, Borel offers trust services and provides a variety of other fiduciary services including management, advisory and administrative services to individuals.

Sand Hill Advisors has been providing wealth management services to high net worth investors and select institutions in Northern California for 20 years. The firm manages investments covering a wide range of asset classes for both taxable and tax-exempt portfolios. A registered investment advisor headquartered in Palo Alto, California, Sand Hill has special expertise in transitional wealth counsel.

Pacific Northwest Region

Coldstream Capital Management Inc. is a multi-client family office providing comprehensive wealth management services to high net worth individuals and their families. Since inception in 1996, Coldstream Capital Management has helped families with considerable assets grow, enhance and safeguard their wealth by offering objective advice and comprehensive strategies tailored to match their personal and financial goals.

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 charges and expenses related to the consummation of mergers and acquisitions and costs related to the integration of merged entities, as well as, excluding other significant gains or losses that are unusual in nature. Because these items and their impact on the Company’s performance are difficult to predict, management believes that presentations of financial measures excluding the impact of these items provide useful supplemental information that is essential to a proper understanding of the operating results of the Company’s core 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 within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. These statements included, but are not limited to, prospects for long term financial performance, the impact on the Company’s results of improved market conditions and prevailing and future interest rates, prospects for growth in balance sheet assets and assets under management, 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. These factors include, among others, changes in the interest rate environment which may reduce interest margins and adversely impact net interest income, adverse conditions in the capital markets and the impact of such conditions on Boston Private’s asset management activities, 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, the risk that goodwill and intangibles recorded in the Company’s financial statements will become impaired, and risks related to the identification and implementation of acquisitions, as well as the other risks and uncertainties detailed 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

(Unaudited)

(Dollars In Thousands, Except Per Share Data)

	June 30, 2003			June 30, 2002			% Change		December 31, 2002
FINANCIAL DATA:

Total Balance Sheet Assets	$	2,023,973		$	1,699,603		19.1	%	$	1,820,741
Stockholders’ Equity	175,778			153,479			14.5	%	167,382
Boston Private Bank Tangible Capital	97,461			78,451			24.2	%	86,661
Borel Private Bank Tangible Capital	39,811			33,456			19.0	%	36,975
Investment Securities	390,903			269,855			44.9	%	345,857
Loans held for sale	21,440			4,527			nm		30,923
Commercial Loans	764,225			595,333			28.4	%	676,189
Residential Mortgage Loans	574,728			561,334			2.4	%	544,166
Home Equity and Other Loans	77,708			81,572			(4.7	)%	81,371
Total Loans	1,416,661			1,238,239			14.4	%	1,301,726
Allowance for Loan Losses	18,488			15,732			17.5	%	17,050
Nonperforming Loans	1,025			866			18.4	%	1,057
Other Real Estate Owned	—			—			nm		—
Nonperforming Assets	1,025			866			18.4	%	1,057
Deposits	1,569,846			1,326,689			18.3	%	1,400,333
Borrowings	245,310			188,361			30.2	%	218,389

Book Value Per Share	$	7.75		$	6.85		13.0	%	$	7.42
Market Price Per Share	$	21.12		$	24.74		(14.6	)%	$	19.86

ASSETS UNDER MANAGEMENT:

Westfield Capital Management	$	4,030,000		$	2,861,000		40.9	%	$	2,766,000
Boston Private Bank & Trust	1,781,000			1,506,000			18.3	%	1,605,000
Sand Hill Advisors - Regular Accounts	557,000			494,000			12.8	%	456,000
Sand Hill Advisors - Concentrated Stock Portfolios	25,000			38,000			(34.2	)%	21,000
Boston Private Value Investors	689,000			522,000			32.0	%	501,000
RINET Company	743,000			587,000			26.6	%	591,000
Borel Bank & Trust Company	518,000			496,000			4.4	%	501,000
Less: Intercompany Subadvisory Relationship	(92,000		)	—			nm		—
Total Assets Under Management	$	8,251,000		$	6,504,000		26.9	%	$	6,441,000

FINANCIAL RATIOS:

Stockholders’ Equity/Total Assets	8.68		%	9.03		%	(3.9	)%	9.19		%
Nonperforming Loans/Total Loans	0.07		%	0.07		%	0.0	%	0.08		%
Allowance for Loan Losses/Total Loans	1.31		%	1.27		%	3.1	%	1.31		%
Allowance for Loan Losses/Non Performing Assets	1803.71		%	1816.63		%	(0.7	)%	1613.06		%
Allowance for Loan Losses and Tangible Capital/ Total Loans	10.99		%	10.31		%	6.6	%	10.81		%
Allowance for Loan Losses and Tangible Capital/ Non Performing Assets	15196.10		%	14738.91		%	3.1	%	13309.93		%
Nonperforming Assets/Total Assets	0.05		%	0.05		%	0.0	%	0.06		%

	Three Months Ended						Six Months Ended
	June 30, 2003		June 30, 2002		% Change		June 30, 2003		June 30, 2002			% Change
OPERATING RESULTS:

Net Interest Income - on a Fully Taxable Equivalent Basis (FTE)	$	17,666	$	16,340	8.1	%	$	34,389	$	32,009		7.4	%
FTE Adjustment	656		436		50.5	%	1,071		906			18.2	%
Net Interest Income	17,010		15,904		7.0	%	33,318		31,103			7.1	%
Investment Management Fees - Westfield Capital Management	6,416		4,874		31.6	%	11,379		9,756			16.6	%
Investment Management Fees - Boston Private Bank & Trust	2,430		2,331		4.2	%	4,799		4,663			2.9	%
Investment Management Fees - Sand Hill Advisors	916		1,104		(17.0	)%	1,808		2,237			(19.2	)%
Investment Management Fees - Boston Private Value Investors	977		950		2.8	%	1,950		1,889			3.2	%
Investment Management Fees - Borel Bank & Trust Company	648		605		7.1	%	1,300		1,214			7.1	%
Total Investment Management Fees	11,387		9,864		15.4	%	21,236		19,759			7.5	%
Financial Planning Fees	1,765		1,571		12.3	%	3,302		3,046			8.4	%
Cash Administration Fees	162		193		(16.1	)%	376		414			(9.2	)%
Gain on Sale of Loans	793		610		30.0	%	1,584		881			79.8	%
Other Fees	857		722		18.7	%	1,784		1,517			17.6	%
Total Fees	14,964		12,960		15.5	%	28,282		25,617			10.4	%
Equity in Earnings of Partnerships	55		—		nm		150		(18		)	nm
Gain on Sale of Investments	444		147		202.0	%	1,519		563			169.8	%
Total Fees and Other Income	15,463		13,107		18.0	%	29,951		26,162			14.5	%
Total Revenue	32,473		29,011		11.9	%	63,269		57,265			10.5	%
Loan Loss Provision	770		555		38.7	%	1,549		1,235			25.4	%
Salaries and Benefits	14,985		12,813		17.0	%	29,266		25,645			14.1	%
Occupancy and Equipment	3,678		2,906		26.6	%	8,970		5,425			65.3	%
Professional Services	1,120		914		22.5	%	2,152		1,736			24.0	%
Marketing and Business Development	938		904		3.8	%	1,854		1,734			6.9	%
Contract Services and Processing	392		315		24.4	%	853		714			19.5	%
Amortization of Goodwill and Intangibles	48		5		nm		87		9			nm
Other	1,470		1,243		18.3	%	3,585		2,933			22.2	%
Operating Expenses	22,631		19,100		18.5	%	46,767		38,196			22.4	%
Income Before Taxes	9,072		9,356		(3.0	)%	14,953		17,834			(16.2	)%
Income Tax Expense	1,589		3,072		(48.3	)%	6,390		5,767			10.8	%
Net Income	$	7,483	$	6,284	19.1	%	$	8,563	$	12,067		(29.0	)%

	Three Months Ended							Six Months Ended
	June 30, 2003			June 30, 2002		% Change		June 30, 2003		June 30, 2002		% Change
PER SHARE DATA:

Earnings per share

Basic Earnings Per Share	$	0.33		$	0.28	17.9	%	$	0.38	$	0.54	(29.6	)%

Diluted Earnings Per Share	$	0.32		$	0.27	18.5	%	$	0.37	$	0.52	(28.8	)%

Average Common Shares Outstanding	22,659,682			22,376,940		1.3	%	22,639,090		22,342,268		1.3	%
Average Diluted Shares Outstanding	23,405,023			23,516,722		(0.5	)%	23,348,957		23,426,970		(0.3	)%

Reconciliation of GAAP EPS to Adjusted EPS (on a fully diluted basis)

Earnings per share (GAAP basis)	$	0.32		$	0.27	0.19		$	0.37	$	0.52	(28.8	)%
REIT Tax Adjustment	$	(0.07	)	$	0.00	nm		$	0.06	$	0.00	nm
Lease Accrual	$	0.01		$	0.00	nm		$	0.07	$	0.00	nm
Adjusted Earnings Per Share	$	0.26		$	0.27	(3.7	)%	$	0.50	$	0.52	(3.8	)%

Adjusted Net Income

Net Income (GAAP Basis)	$	7,483		$	6,284	19.1	%	$	8,563	$	12,067	(29.0	)%
REIT Tax Adjustment	$	(1,641	)	$	0	nm		$	1,438	$	0	nm
Lease Accrual	$	226		$	0	nm		$	1,544	$	0	nm
Adjusted Net Income	$	6,068		$	6,284	(3.4	)%	$	11,545	$	12,067	(4.3	)%

Proforma Net Income and Earnings per Share under FAS 123

Net Income (GAAP Basis)	7,483			6,284		19.1	%	8,563		12,067		(29.0	)%
Less: Stock based Employee and Director Compensation Expense	693			577		20.1	%	1,212		1,615		(25.0	)%
Pro forma FAS 123 Net Income	6,790			5,707		19.0	%	7,351		10,452		(29.7	)%

Proforma Basic Earnings Per Share -FAS 123	$	0.30		$	0.26	15.4	%	$	0.32	$	0.47	(31.9	)%
Proforma Diluted Earnings Per share -FAS 123	$	0.29		$	0.24	20.8	%	$	0.31	$	0.45	(31.1	)%

Detailed Reconciliation of GAAP And Adjusted Earnings

	Three Months Ended June 30, 2003										Six Months Ended June 30, 2003
	GAAP Earnings		REIT Tax Adjustment			Lease Accrual Adjustment			Adjusted Earnings		GAAP Earnings		REIT Tax Adjustment			Lease Accrual Adjustment			Adjusted Earnings

Revenues	$	32,473	$	0		$	0		$	32,473	$	63,269	$	0		$	0		$	63,269
Allowance for Loan Losses	770		0			0			770		1,549		0			0			1,549
Expenses	22,631		222			(347		)	22,506		46,767		(244		)	(2,375		)	44,148
Pre-Tax Income	9,072		(222		)	347			9,197		14,953		244			2,375			17,572
Income Tax Expense	1,589		1,419			121			3,129		6,390		(1,194		)	831			6,027
Net Income	$	7,483	$	(1,641	)	$	226		$	6,068	$	8,563	$	1,438		$	1,544		$	11,545

Diluted Earnings Per Share	$	0.32	$	(0.07	)	$	0.01		$	0.26	$	0.37	$	0.06		$	0.07		$	0.50

	Three months ended June 30, 2002								Six Months Ended June 30, 2002
	GAAP Earnings		Adjustment		Adjustment		Adjusted Earnings		GAAP Earnings		Adjustment		Adjustment		Adjusted Earnings

Revenues	$	29,011	$	0	$	0	$	29,011	$	57,265	$	0	$	0	$	57,265
Allowance for Loan Losses	555		0		0		555		1,235		0		0		1,235
Expenses	19,100		0		0		19,100		38,196		0		0		38,196
Pre-Tax Income	9,356		0		0		9,356		17,834		0		0		17,834
Income Tax Expense	3,072		0		0		3,072		5,767		0		0		5,767
Net Income	$	6,284	$	0	$	0	$	6,284	$	12,067	$	0	$	0	$	12,067

Diluted Earnings Per Share	$	0.27	$	0.00	$	0.00	$	0.27	$	0.52	$	0.00	$	0.00	$	0.52

	Three Months Ended						Six Months Ended
	June 30, 2003		June 30, 2002		% Change		June 30, 2003		June 30, 2002		% Change
OPERATING RATIOS & STATISTICS:

Return on Average Equity	17.45	%	16.85	%	3.6	%	10.05	%	16.49	%	(39.1	)%
Return on Average Assets	1.49	%	1.56	%	(4.5	)%	0.88	%	1.53	%	(42.5	)%
Net Interest Margin	3.70	%	4.30	%	(14.0	)%	3.74	%	4.31	%	(13.2	)%
Total Fees and Other Income/Total Revenue	47.62	%	45.18	%	5.4	%	47.34	%	45.69	%	3.6	%
Efficiency Ratio	69.69	%	65.84	%	5.8	%	73.92	%	66.70	%	10.8	%
Net Loans Charged-off (recovered)	18		25		(28.0	)%	—		25		(100.0	)%

ADJUSTED OPERATING RATIOS:

Return on Average Equity	14.15	%	16.85	%	(16.0	)%	13.55	%	16.49	%	(17.8	)%
Return on Average Assets	1.21	%	1.56	%	(22.4	)%	1.19	%	1.53	%	(22.2	)%
Efficiency Ratio	69.31	%	65.84	%	5.3	%	69.78	%	66.70	%	4.6	%

	Three Months Ended								Six Months Ended
	June 30, 2003			June 30, 2002			% Change		June 30, 2003			June 30, 2002			% Change
AVERAGE BALANCE SHEET:

AVERAGE ASSETS:

Interest Bearing Cash	$	716		$	116		nm		$	740		$	126		nm
Federal Funds Sold	85,737			29,028			195.4	%	79,727			28,260			182.1	%
Money Market Investments	30,452			45,489			(33.1	)%	30,928			53,451			(42.1	)%
U.S. Treasuries and Agencies	162,842			114,771			41.9	%	164,495			111,307			47.8	%
Municipal Securities	177,899			101,349			75.5	%	150,720			100,490			50.0	%
Corporate Bonds	21,563			17,551			22.9	%	17,524			20,789			(15.7	)%
Mortgage-Backed Securities	1,140			1,858			(38.6	)%	1,215			1,997			(39.2	)%
FHLB Stock	9,101			7,154			27.2	%	8,711			7,049			23.6	%
Commercial Loans	755,076			570,175			32.4	%	726,582			551,324			31.8	%
Residential Loans	576,546			544,806			5.8	%	569,852			523,597			8.8	%
Home Equity and Other Consumer Loans	77,833			76,401			1.9	%	78,483			77,555			1.2	%
Total Earning Assets	1,898,905			1,508,698			25.9	%	1,828,977			1,475,945			23.9	%
Allowance for Loan Losses	(18,068		)	(15,439		)	17.0	%	(17,727		)	(15,117		)	17.3	%
Other Assets	131,694			116,522			13.0	%	127,467			114,371			11.5	%
TOTAL AVERAGE ASSETS	$	2,012,531		$	1,609,781		25.0	%	$	1,938,717		$	1,575,199		23.1	%

AVERAGE LIABILITIES AND STOCKHOLDERS’ EQUITY:

Savings Accounts	$	24,093		$	24,668		(2.3	)%	$	23,911		$	23,656		1.1	%
NOW Accounts	188,121			135,913			38.4	%	186,406			133,486			39.6	%
Money Market Accounts	843,942			628,744			34.2	%	794,745			615,903			29.0	%
Certificates of Deposit	245,858			252,471			(2.6	)%	248,117			249,916			(0.7	)%
Total Interest-Bearing Deposits	1,302,014			1,041,796			25.0	%	1,253,179			1,022,961			22.5	%
Federal Funds Purchased	962			1,089			(11.7	)%	1,591			1,782			(10.7	)%
Repurchase Agreements	78,043			48,814			59.9	%	73,470			51,927			41.5	%
FHLB Borrowings	166,291			127,043			30.9	%	158,746			123,398			28.6	%
Total Interest-Bearing Liabilities	1,547,310			1,218,742			27.0	%	1,486,986			1,200,068			23.9	%
Noninterest-Bearing Deposits	267,116			221,352			20.7	%	254,261			206,756			23.0	%
Other Liabilities	26,557			20,540			29.3	%	27,064			22,030			22.9	%
Total Liabilities	1,840,983			1,460,634			26.0	%	1,768,311			1,428,854			23.8	%
Stockholders’ Equity	171,548			149,147			15.0	%	170,405			146,345			16.4	%
TOTAL AVERAGE LIABILITIES & STOCKHOLDERS’ EQUITY	$	2,012,531		$	1,609,781		25.0	%	$	1,938,716		$	1,575,199		23.1	%

	June 30, 2003			March 31, 2003			% Change
FINANCIAL DATA:

Total Balance Sheet Assets	$	2,023,973		$	1,934,115		4.6	%
Stockholders’ Equity	175,778			167,806			4.8	%
Boston Private Bank Tangible Capital	97,461			91,205			6.9	%
Borel Private Bank Tangible Capital	39,811			38,849			2.5	%
Investment Securities	390,903			382,755			2.1	%
Loans Held for Sale	21,440			13,978			53.4	%
Commercial Loans	764,225			746,459			2.4	%
Residential Mortgage Loans	574,728			551,324			4.2	%
Home Equity and Other Loans	77,708			77,754			(0.1	)%
Total Loans	1,416,661			1,375,537			3.0	%
Allowance for Loan Losses	18,488			17,736			4.2	%
Nonperforming Loans	1,025			1,806			(43.2	)%
Other Real Estate Owned	—			—			nm
Nonperforming Assets	1,025			1,806			(43.2	)%
Deposits	1,569,846			1,496,908			4.9	%
Borrowings	245,310			236,843			3.6	%
							nm
Book Value Per Share	$	7.75		$	7.41		4.6	%
Market Price Per Share	$	21.12		$	14.96		41.2	%

ASSETS UNDER MANAGEMENT:

Westfield Capital Management	$	4,030,000		$	3,117,000		29.3	%
Boston Private Bank & Trust	1,781,000			1,653,000			7.7	%
Sand Hill Advisors - Regular Accounts	557,000			485,000			14.8	%
Sand Hill Advisors - Concentrated Stock Portfolios	25,000			16,000			56.3	%
Boston Private Value Investors	689,000			482,000			42.9	%
RINET Company	743,000			594,000			25.1	%
Borel Bank & Trust Company	518,000			514,000			0.8	%
Less: intercompany subadvisory relationship	(92,000		)	(45,000		)	104.4	%
Total Assets Under Management	$	8,251,000		$	6,816,000		21.1	%

FINANCIAL RATIOS:

Stockholders’ Equity/Total Assets	8.68		%	8.68		%	0.0	%
Nonperforming Loans/Total Loans	0.07		%	0.13		%	(46.2	)%
Allowance for Loan Losses/Total Loans	1.31		%	1.29		%	1.6	%
Allowance for Loan Losses/Non Performing Assets	1803.71		%	982.06		%	83.7	%
Allowance for Loan Losses and Tangible Capital/ Total Loans	10.99		%	10.74		%	2.3	%
Allowance for Loan Losses and Tangible Capital/ Non Performing Assets	15196.10		%	8183.28		%	85.7	%
Nonperforming Assets/Total Assets	0.05		%	0.09		%	(44.4	)%

	Three Months Ended
	June 30, 2003		March 31, 2003		% Change
OPERATING RESULTS:

Net Interest Income - on a Fully Taxable Equivalent basis (FTE)	$	17,666	$	16,722	5.6	%
FTE Adjustment	656		414		58.5	%
Net Interest Income	17,010		16,308		4.3	%
Investment Management Fees - Westfield Capital Management	6,416		4,963		29.3	%
Investment Management Fees - Boston Private Bank & Trust	2,430		2,369		2.6	%
Investment Management Fees - Sand Hill Advisors	916		892		2.7	%
Investment Management Fees - Boston Private Value Investors	977		973		0.4	%
Investment Management Fees - Borel Bank & Trust Company	648		652		(0.6	)%
Total Investment Management Fees	11,387		9,849		15.6	%
Financial Planning Fees	1,765		1,537		14.8	%
Cash Administration Fees	162		214		(24.3	)%
Gain on Sale of Loans	793		791		0.3	%
Other Fees	857		927		(7.6	)%
Total Fees	14,964		13,318		12.4	%
Equity in Earnings of Partnerships	55		95		(42.1	)%
Gain on Sale of Investments	444		1,075		(58.7	)%
Total Fees and Other Income	15,463		14,488		6.7	%
Total Revenue	32,473		30,796		5.4	%
Loan Loss Provision	770		778		(1.0	)%

Salaries and Benefits	14,985		14,265		5.0	%
Occupancy and Equipment	3,678		5,292		(30.5	)%
Professional Services	1,120		1,032		8.5	%
Marketing and Business Development	938		932		0.6	%
Contract Services and Processing	392		461		(15.0	)%
Amortization of Goodwill and Intangibles	48		39		23.1	%
Other	1,470		2,115		(30.5	)%
Operating Expenses	22,631		24,136		(6.2	)%
Income before Taxes	9,072		5,882		54.2	%
Income Tax Expense	1,589		4,801		(66.9	)%
Net Income	$	7,483	$	1,081	nm

	Three Months Ended
	June 30, 2003			March 31, 2003			% Change
PER SHARE DATA:

Basic Earnings Per Share	$	0.33		$	0.05		nm

Diluted Earnings Per Share	$	0.32		$	0.05		nm

Average Common Shares Outstanding	22,659,682			22,618,498			0.2	%

Average Diluted Shares Outstanding	23,405,023			23,298,957			0.5	%

Reconciliation of GAAP EPS to Adjusted EPS (on a fully diluted basis)

Earnings per share (GAAP basis)	$	0.32		$	0.05		nm
REIT Tax Adjustment	$	(0.07	)	$	0.13		(153.8	)%
Lease Accrual	$	0.01		$	0.06		(83.3	)%
Adjusted Earnings Per Share	$	0.26		$	0.24		8.3	%

Adjusted Net Income

Net Income (GAAP)	$	7,483		$	1,081		nm
REIT Tax Adjustment	$	(1,641	)	$	3,079		(153.3	)%
Lease Accrual	$	226		$	1,318		(82.9	)%
Adjusted Net Income	$	6,068		$	5,478		10.8	%

Proforma Net Income and Earnings per share under FAS123

Net Income	7,483			1,081			nm
Less: Stock based Employee and Director Compensation Expense	693			519			33.5	%
Proforma Net Income	6,790			562			nm

Proforma Basic Earnings per share	$	0.30		$	0.02		nm

Proforma Diluted Earnings per share	$	0.29		$	0.02		nm

OPERATING RATIOS & STATISTICS:

Return on Average Equity	17.45		%	2.56		%	nm
Return on Average Assets	1.49		%	0.23		%	nm
Net Interest Margin	3.70		%	3.77		%	(1.9	)%
Total Fees and Other Income/Total Revenue	47.62		%	47.05		%	1.2	%
Efficiency Ratio	69.69		%	78.37		%	(11.1	)%
Net Loans charged-off (recovered)	—			93			(100.0	)%

ADJUSTED OPERATING RATIOS:

Return on Average Equity	14.15		%	12.98		%	9.0	%
Return on Average Assets	1.21		%	1.17		%	3.3	%
Efficiency Ratio	69.31		%	70.28		%	(1.4	)%