Exhibit 99.1

August 2009

Dear Friend:

Parts of the financial sector are finally beginning to show some signs of recovery from this dramatic period of recession. Uncertainty and a changing landscape continue to make the recovery uneven. With the goal of regaining stability in the financial system, the government plans to overhaul financial regulation creating new guidelines for banks to understand and follow. Despite assistance in several forms, many financial institutions have still been forced to take extreme measures such as job cuts and branch closures. Boston Private Bank & Trust has been fortunate to be able to avoid taking measures such as these due to continued strategic growth and a long-term philosophy of prudent risk management and careful expense control. This approach, along with the loyalty of our valued clients, has enabled the Bank to maintain its strength and stability throughout these difficult times.

I am pleased to report that earnings for the first half of the year are right about where we expected; and our asset quality, capital, and liquidity levels remain strong. Excluding the impact of a special FDIC deposit insurance premium assessment of $1.4 million, pretax earnings were up 3% versus the same period last year. This special assessment will help to ensure the FDIC’s continued strength during this difficult economic period.

Business growth is strong, client retention is high, and the number of new client relationships is increasing. Deposits are up 19% and net loans are up 4%. We have brought in $150 million in new assets under management since the beginning of the year and our fixed income portfolio performed exceptionally well. Fee income was down versus the same period last year, primarily as a result of the market impact on assets under management. Boston Private Bank & Trust Company ranks number one in return on equity and average earnings growth over the last five years among Massachusetts peer banks with $1 billion to $10 billion in assets. We are now the 8^th largest bank in Massachusetts, up from 9^th a year ago, and we are the 22^nd largest independent investment advisor in the Greater Boston area, up from 24^th a year ago.

As part of our ongoing commitment to the community, we have financed over $210 million in home mortgage loans over the last 10 years through our First-Time Homebuyer Programs which serve low- and moderate-income homebuyers. This year, we continue to offer these programs and expect to help more than 120 low- and moderate-income first-time homebuyers obtain stable and affordable mortgages at attractive, below-market rates. We are proud to have earned an “outstanding” Community Reinvestment Act rating since 2000 for our response to the range of credit needs in the Boston area.

I would like to extend my sincere thanks to you for doing business with Boston Private Bank & Trust Company. Please feel free to call on us for assistance whenever you need financial guidance. We always welcome your questions, comments, and suggestions.

Sincerely,

/s/ Mark D. Thompson

Mark D. Thompson

CEO & President

STATEMENT OF FINANCIAL CONDITION

•••••••••••••••••••••••••••

AS OF JUNE 30, 2009

BOSTON PRIVATE BANK & TRUST COMPANY

Dear Friend,

I am pleased to report that Boston Private Bank & Trust Company continues to do well in an extremely difficult market. The Bank continues to be profitable, and our capital and liquidity levels remain strong.

2009 First Half Financial Highlights:

• Operating earnings, excluding the FDIC special insurance assessment, were up 3% as compared to the same period last year.

• Net interest income was up 7% due to an increase in both earnings assets and margins.

• Total liquidity has improved, with deposits up 19% and net loans up 4%.

• Fee income was down, primarily as a result of the market impact on assets under management.

I would like to extend my sincere thanks to you for doing business with Boston Private Bank & Trust Company. Please feel free to call on us for assistance whenever you need financial guidance.

We always welcome your questions, comments, and suggestions.

Sincerely,

/s/ Mark D. Thompson

Mark D. Thompson

CEO & President

Boston Private Bank & Trust Company

CONDENSED BALANCE SHEETS

(Unaudited)	June 30,
($ in Thousands)	2009		2008
Assets
Cash & Short-Term Investments	$	173,523	$	30,341
Investment Securities		454,651		625,845
Loans Held for Sale		11,963		5,744
Commercial Loans		1,191,668		1,064,480
Mortgage Loans		1,048,424		1,109,596
Home Equity & Other Loans		93,901		69,801
Total Loans		2,333,993		2,243,877
Less: Allowance for Loan Losses		27,142		24,244
Net Loans		2,306,851		2,219,633
Other Assets		98,839		109,182
Total Assets	$	3,045,827	$	2,990,745
Liabilities & Shareholder’s Equity
Demand Deposits	$	437,426	$	296,990
NOW Accounts		187,754		200,842
Savings & Money Market		909,162		884,434
Certificates of Deposit		656,344		454,207
Total Deposits		2,190,686		1,836,473
Borrowings		606,795		940,976
Other Liabilities		20,668		17,695
Total Liabilities		2,818,149		2,795,144
Shareholder’s Equity		227,678		195,601
Total Liabilities & Shareholder’s Equity	$	3,045,827	$	2,990,745

Boston Private Bank & Trust Company

CONDENSED STATEMENTS OF INCOME

(Unaudited)	Six Months Ended June 30,
($ In Thousands)	2009		2008
Interest Income	$	68,188	$	72,910
Interest Expense		28,244		35,689
Net Interest Income		39,944		37,221
Provision for Loan Losses		3,513		3,406
Net Interest Income after Provision		36,431		33,815
Investment Management Fees		6,965		8,471
Banking Fees and Other Income		4,819		3,752
Operating Expenses		33,063		29,921
Income Before Income Taxes		15,152		16,117
Income Taxes		3,714		2,978
Net Income	$	11,438	$	13,139

Boston Private Bank & Trust Company

SELECTED FINANCIAL DATA

(Unaudited)	At and for the Six Months Ended June 30,
($ In Thousands)	2009			2008
Assets Under Management	$	2,364,000		$	2,813,000
Return on Average Assets		0.77	%		0.92	%
Return on Average Equity		10.70	%		13.66	%
Net Interest Margin		3.04	%		2.95	%
Total Fees and Other Income / Revenues		22.98	%		24.72	%
Allowance for Loan Losses / Total Loans		1.16	%		1.08	%

Policy Group   Mark D. Thompson Chief Executive Officer & President   James C. Brown Executive Vice President Chief Lending Officer   Robert C. Buffum, Jr. Senior Vice President Chief Risk Officer   Gary L. Garber Senior Vice President Chief Information Officer   James D. Henderson Executive Vice President   Pilar Pueyo Senior Vice President   Anne L. Randall Executive Vice President Chief Financial & Administrative Officer   George G. Schwartz Executive Vice President Chief Operating Officer & Treasurer   John J. Sullivan Executive Vice President   Board of Directors   Herbert S. Alexander Managing Partner Alexander, Aronson, Finning & Company   John H. Clymer Senior Counsel Nixon Peabody LLP   Eugene S. Colangelo Chairman of the Board Julio Enterprises Chairman of the Board Boston Private Bank & Trust Company   James D. Dawson Chief Executive Officer, Private Banking Group Boston Private Financial Holdings, Inc.   Kathleen M. Graveline Private Investor   Charles T. Grigsby Consultant   Susan P. Haney Private Investor   E. Christopher Palmer President & Managing Shareholder Palmer and Corbett, PC   John D. Macomber Founder & Chief Executive Officer BuildingVision, Inc. Patricia McGovern General Counsel & Senior Vice President Beth Israel Deaconess Medical Center   Michael F. Schiavo Consultant   James K. Schmidt Private Investor   Alan D. Solomont Chairman & Chief Executive Officer Solomont Bailis Ventures   Mark D. Thompson Chief Executive Officer & President Boston Private Bank & Trust Company   Timothy L. Vaill Chairman & Chief Executive Officer Boston Private Financial Holdings, Inc.   Office Locations   Headquarters: Boston Office Ten Post Office Square Boston, Massachusetts (617) 912-1900   Wellesley Office 336 Washington Street Wellesley, Massachusetts (781) 707-7700 Back Bay Office 500 Boylston Street Boston, Massachusetts (617) 912-4500   Jamaica Plain Loan Center 401c Centre Street Jamaica Plain, Massachusetts (617) 524-6050   Kendall Square Office One Cambridge Center Cambridge, Massachusetts (617) 646-4800   Newton Centre Office 1223 Centre Street Newton, Massachusetts (617) 646-4850   Seaport Office 157 Seaport Boulevard Boston, Massachusetts (617) 646-4880   Lexington Office 1666 Massachusetts Avenue Lexington, Massachusetts (617) 912-3600   Hingham Office 7 Central Street Hingham, Massachusetts (781) 740-2405   Beverly Office 57 Enon Street, Route 1A Beverly, Massachusetts (978) 922-8000

BOSTON PRIVATE BANK & TRUST COMPANY

Headquarters: Ten Post Office Square • Boston, Massachusetts 02109

Telephone: 617-912-1900 • www.bostonprivatebank.com

Member FDIC • Equal Housing Lender