Boston Private Financial Holdings’s earnings dropped to $1.1 million in the second quarter 2010 compared to $5.1 million in the first quarter.

Commercial loan losses in Northern California have required the company to set aside higher provisions for loan losses and created the bulk of the earnings drop, said Timothy L. Vaill, chairman and CEO.

But, credit quality at banks in Southern California, the Pacific Northwest and Boston all stayed solid or continued to improve, he said. Core business also improved, with increases in loans, higher net interest income and higher fee income from wealth advisory and management segments.

Boston Private, a national financial services firm, saw revenues of $70.7 million in the second quarter, a $1.1 million decrease from the previous quarter. Revenues were up 7 percent from $66.2 million compared to the same quarterly period in 2009.

Boston Private also redeemed the remaining $104 million of its TARP Capital Purchase Program funds during the quarter, resulting in a one-time non-cash equity adjustment of $5 million.