BPFH Continues Participationin Temporary Liquidity Guarantee Program

Published in Business and Finance on Friday, December 12th 2008 at 7:35 GMT by Market Wire
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BOSTON--([ BUSINESS WIRE ])--Boston Private Financial Holdings, Inc. (NASDAQ: BPFH) announced that it will continue to participate in the Federal Deposit Insurance Corporation's Temporary Liquidity Guarantee Program. This Program consists of two components. The first is a transaction account guarantee program, which provides a full guarantee on all non-interest bearing transaction accounts, such as personal and business checking, held by any depositor through Dec. 31, 2009. The second component is the debt guarantee program, which guarantees newly issued senior unsecured debt of banks, thrifts and certain holding companies in the event of payment default.

The Company also provided an update on its previously announced intention to sell a loan portfolio from its Southern California private banking affiliate, First Private Bank & Trust ("First Private"). Earlier this fall, BPFH announced plans to sell substantially all of First Private's non-strategic land and construction loans, the majority of which were in the Inland Empire, and engaged a third party to act as its agent to sell the loans.

BPFH's Chairman and CEO, Timothy L. Vaill, commented, "We are pleased with the FDIC's Temporary Liquidity Guarantee Program for the 100% guarantee benefit it provides our deposit clients. While we have no present intentions to utilize the second component of the program, the debt guarantee, we like the flexibility it provides. The First Private loan portfolio sale has been proceeding in line with management's expectations and we look forward to completing this process in a timely manner. We will plan to share the results of the sale and work outs in greater detail during the January announcement of our fourth quarter earnings."

Boston Private Financial Holdings, Inc.

Boston Private Financial Holdings is a national financial service organization comprised of independently operated affiliates located in key regions of the U.S. that offer private banking, wealth advisory and investment management services to the high net worth marketplace, selected businesses and institutions. The Company enters demographically attractive markets through a very selective acquisition process and then expands by way of organic growth. It employs a distinct business strategy, empowering its affiliates to run independently such that they can best serve their clients at the local level, while at the same time providing strategic oversight and access to resources, both financial and intellectual, to support management, compliance, legal, marketing, and operations. (NASDAQ: BPFH).

For more information about the Company, visit the Company's web site at [ www.bostonprivate.com ].

Statements in this press release that are not historical facts are 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 future interest rate trends and liquidity, prospects for growth in assets, 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 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, adverse conditions in the capital and debt markets and the impact of such conditions on the Company's private banking and asset investment advisory activities, changes in interest rates, competitive pressures from other financial institutions, a deterioration in general economic conditions on a national basis or in the local markets in which the Company operates, including changes which adversely affect borrowers' ability to service and repay our loans, changes in loan defaults and charge-off rates, adequacy of loan loss reserves, reduction in deposit levels necessitating increased borrowing to fund loans and investments, the passing of adverse government regulation, 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 in the Company's Annual Report on Form 10-K and other filings submitted to the Securities and Exchange Commission. 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.