Boston Private Completes Acquisition of Encino State Bank BOSTON, Oct. 1 /PRNewswire-FirstCall/ -- Boston Private Financial Holdings, Inc. (NASDAQ:BPFH) today announced that it has completed the acquisition of Encino State Bank (OTC:FCAL.OB) (BULLETIN BOARD: FCAL.OB) , a $181 million asset commercial bank located in Southern California. Founded in 1997, Encino has offices in Santa Monica, Westlake Village and Encino, California. Upon consummation of the acquisition, Encino was merged into First State Bank of California, headquartered in Granada Hills, with First State Bank as the surviving entity. First State has offices in Burbank and Rancho Cucamonga, California. Combined, the Bank has over $400 million in assets. The transaction is valued at $33.1 million, with the purchase price paid 100% in cash. The Company expects the transaction to be immediately accretive to GAAP and cash earnings. Jonathan H. Parker, Boston Private's President - Western Region, said, "We are committed to expanding our wealth management enterprise in Southern California, and the addition of Encino State Bank to First State's franchise gives us a very strong private banking platform in the Los Angeles area. This acquisition will allow us to continue to build on the superior services we can provide to local high net worth clients. Combining the highly qualified staff and strong banking reputation built by Carl Schatz at Encino with our capable team at First State, led by Rich Taylor, will position us well in the region." Richard Taylor, Chief Executive Officer at First State Bank, said, "Encino is a terrific banking enterprise and their locations in Encino, Santa Monica and Westlake Village complement First State's existing footprint in Southern California. We've realized that our common philosophy of offering outstanding service, along with our shared vision to expand the private banking services we offer will allow us to better serve the private banking needs of our customers. Together, we are now the anchor for Boston Private's wealth management platform in the Los Angeles area and we look forward to contributing to the firm's continued success." Carl O. Schatz, Chairman and Chief Executive Officer of Encino State Bank, said: "We are excited to partner together with First State and expand the breadth of private banking capabilities we have to offer. Our customers will now have improved access to a full suite of products and services within the Boston Private family. Boston Private has one of the best reputations in the wealth management sector and we look forward to being a part of the greater organization. In turn, Boston Private and First State are acquiring an excellent bank with key office locations and great people. We firmly believe our customers and employees should be very pleased with the prospects of their future relationships with First State Bank and Boston Private." About Boston Private Financial Holdings Boston Private Financial Holdings (NASDAQ:BPFH) is a financial services company which 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 core competencies. 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 http://www.bostonprivate.com/. This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, (i) statements about the benefits of the transaction to Boston Private, including future financial and operating results, enhanced revenues that may be realized from the transaction, the accretive effect of the transaction on Boston Private's financial results, and Boston Private's performance goals for Encino State Bank and First State Bank; (ii) statements with respect to Boston Private's strategy, initiatives, plans, objectives, expectations, and intentions; (iii) statements regarding future operations, market position or prospects of either Boston Private, Encino State Bank or First State Bank; (iv) statements regarding potential product development; and (v) other statements identified by words such as "will," "continues," "increases," "expand," "grow," "opportunity," "believes," "expects," "anticipates," "estimates," "intends," "plan," "target," and similar expressions. These statements are based upon the current beliefs and expectations of Boston Private's management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in such forward-looking statements: (1) the expected benefits to Boston Private's wealth management initiatives may not be realized or may be realized more slowly than expected; (2) the risk that the business of Encino State Bank will not be integrated successfully with Boston Private's or such integration may be more difficult, time-consuming or costly than expected; (3) expected revenue and business synergies from the transaction may not be fully realized or realized within the expected time frame; (4) competitive pressures among banks and investment management companies may increase significantly and have an effect on pricing, spending, product offerings, third-party relationships, revenues and Boston Private's, First State Bank's and Encino State Bank's abilities to attract and retain clients; (5) the strength of the United States economy in general and specifically the strength of the New England, California, New York and other economies in which Boston Private and its affiliates will be operating may be different than expected resulting in, among other things, a deterioration in borrowers' ability to service and repay loans, or a reduced demand for credit, including the resultant effect on the combined company's loan portfolio, levels of charge-offs and non-performing loans and allowance for loan losses, and reduced demand for wealth management services; and (6) adverse conditions in the stock market, the public debt market and other capital markets and the impact of such conditions on the Boston Private's and its affiliates' asset management activities and fees from such activities. Additional factors that could cause Boston Private's results to differ materially from those described in the forward-looking statements can be found in Boston Private's other press releases and Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with or furnished 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. CONTACT: Walter M. Pressey, President and CFO Boston Private Financial Holdings, Inc. (617) 912-1921 http://www.bostonprivate.com/ Richard Taylor First State Bank of California (818) 366-2188 http://www.fsbankcal.com/ DATASOURCE: Boston Private Financial Holdings, Inc. CONTACT: Walter M. Pressey, President and CFO of Boston Private Financial Holdings, Inc., +1-617-912-1921; or Richard Taylor of First State Bank of California, +1-818-366-2188 Web site: http://www.bostonprivatebank.com/ http://www.fsbankcal.com/

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