Boston Private Financial Holdings Inc. reported a third quarter loss of $7.2 million, a more than $8 million negative swing from net income $1.1 million in the second quarter.

The third quarter net loss was primarily driven by a $32.1 million in provision for loan losses, largely resulting from credit-related stress in the commercial real estate portfolio at the company’s Northern California banking affiliate, according to a statement. The third quarter loss per share was 10-cents compared to a loss of 7-cents per share in the second quarter.

"We are taking action based on ongoing economic stress in Northern California and within the commercial real estate market," said President and Chief Executive Officer Clayton G. Deutsch. "Due primarily to deterioration in four large relationships in the third quarter, we have substantially increased the provision for loan losses, which drove our net loss for the quarter. We continue to work proactively to deal with the challenges in that market and will continue to maintain an appropriately conservative posture."