Exhibit 99.1

August 2010

Dear Friend:

Global financial markets continue to be volatile, up early in 2010, only to drop in the second quarter due to concerns about the European debt crisis and the possibility of a double-dip recession. Amid this challenging financial environment, I am pleased to report that the Bank maintained a strong balance sheet and posted significant earnings gains for the first half of the year. And, although some uncertainty still clouds the financial horizon, we are well-positioned to capitalize on opportunities for new business and growth as they arise.

Net income was $13.8 million for the six months ended June 30, 2010, up 20% compared to the same period last year. Excluding the FDIC special insurance assessment in 2009, earnings were up 10% primarily driven by revenue growth. Average total assets were up 13% and average assets under management were up 10%, year over year. Our asset quality, capital, and liquidity remain strong. Client retention is high and we have been adding attractive new client relationships. We continue to manage risk responsibly and our efforts have enabled us to achieve growth while maintaining a strong, stable institution.

I believe the strength of our brand and reputation is the result of staying true to our strategy and core values by providing each client with exceptional service, customized advice, and a trusted partnership. The results of a recent survey conducted by the Luxury Institute support that conviction. Boston Private Bank & Trust Company was named the top wealth management brand nationally by wealthy individuals, and was the only company to rate above average across the board in metrics that included being unique, having clients who are admired and respected, and having the ability to make clients feel special across the full client experience. The Bank is also the firm wealthy consumers are most willing to recommend to the people they care about.

Our parent company, Boston Private Financial Holdings, Inc. (“BPFH”), announced in June that it repaid the balance of the funds it accepted late in 2008 in connection with the Treasury’s Capital Purchase Program, a move that will provide BPFH greater strategic flexibility and independence. BPFH also announced the appointment of its new CEO and President, Clayton G. Deutsch, following Timothy L. Vaill’s retirement after 17 years with BPFH. On behalf of the Board of Directors and staff, I’d like to thank Tim for his service and leadership and wish him well in his new pursuits.

Clay, who comes to BPFH from McKinsey & Company, has worked closely with banks, wealth management firms, and other financial organizations to help them achieve strategic goals. He is committed to supporting Boston Private Bank’s growth strategy, which focuses on high net worth individuals, private partnerships, privately-held businesses, and nonprofits.

Boston Private Bank & Trust Company is deeply committed to its entire community, including low- and moderate-income people and neighborhoods. The Bank has maintained an “outstanding” Community Reinvestment Act rating for 10 consecutive years through our community investment efforts. We encourage our employees to be active members of the communities in which they work and live. In 2009, employees volunteered approximately 5,500 hours in their communities, averaging about 18 hours per employee. We hope to exceed that number in 2010, and are well on our way.

Thank you for trusting in us for both your personal and business banking needs. Please be assured that we will continue doing all we can to maintain your trust and loyalty, and I encourage you to contact us with any comments or suggestions you have.

Sincerely,

Mark D. Thompson

CEO & President

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

HEADQUARTERS: TEN POST OFFICE SQUARE — BOSTON, MASSACHUSETTS 02109

TELEPHONE: 617-912-1900 — WWW.BOSTONPRIVATEBANK.COM