Reportable Segments

12 Months Ended

Dec. 31, 2011

Segments [Abstract]

Segment Reporting Disclosure [Text Block]

REPORTABLE SEGMENTS

Management Reporting

The Company has three reportable segments: Private Banking, Investment Management, and Wealth Advisory, and the Parent Company (Boston Private Financial Holdings, Inc.) (the Holding Company). The financial performance of the Company is managed and evaluated by these three areas. The segments are managed separately as a result of the concentrations in each function.

Description of Reportable Segments

Private Banking

The Private Banking segment operates primarily in four geographic markets: New England, San Francisco Bay, Southern California, and the Pacific Northwest. The Bank currently conducts business under the name of Boston Private Bank & Trust Company in its New England, Southern California, and Pacific Northwest markets. In the San Francisco Bay, the Bank currently conducts business under the name of Borel Private Bank and Trust Company, A Division of Boston Private Bank & Trust Company. The Bank is chartered by The Commonwealth of Massachusetts and is insured by the Federal Deposit Insurance Corporation (the “FDIC”). The Bank pursues private banking and community-oriented business strategies in the four operating markets. The Bank is principally engaged in providing banking, commercial banking, and a variety of other fiduciary services including investment management, advisory, and administrative services to high net worth individuals, their families, small and medium-sized businesses and professionals. In addition, the Bank offers its clients a broad range of deposit and lending products. The specific mix of products, services and clientele can vary by market.

Investment Management

The Investment Management segment has two consolidated affiliates, including DGHM, a registered investment adviser, and Anchor, which is the parent company of Anchor Capital Advisors LLC (“Anchor Capital Advisors”) and Anchor/Russell Capital Advisors LLC (“Anchor Russell”), both of which are registered investment advisers. The Investment Managers serve the needs of pension funds, endowments, trusts, foundations and select institutions, mutual funds and high net worth individuals and their families throughout the U.S. and abroad. The Investment Managers specialize in value-driven equity portfolios with products across the capitalization spectrum. The specific mix of products, services and clientele varies between affiliates. The Investment Managers are located in New England and New York, with one affiliate administrative office in South Florida.

Wealth Advisory

The Wealth Advisory segment has three consolidated affiliates, including KLS, BOS, and DTC. KLS and BOS are registered investment advisers, and all three are wealth management firms. The Wealth Advisors provide comprehensive, planning-based financial strategies to high net worth individuals and their families, and non-profit institutions. The firms offer fee-only financial planning, tax planning and preparation, estate and insurance planning, retirement planning, charitable planning and intergenerational gifting and succession planning. The Wealth Advisors manage investments covering a wide range of asset classes for both taxable and tax-exempt portfolios. The Wealth Advisors are located in New York, Southern California, Northern California, and Pennsylvania. On February 3, 2012, the Company announced the sale of DTC. The transaction is expected to close in the second quarter of 2012, subject to customary closing conditions and regulatory approval. For additional information on the sale, see Part II. Item 8. "Financial Statements and Supplementary Data—Note 27: Subsequent Events."

Measurement of Segment Profit and Assets

The accounting policies of the segments are the same as those described in Part II. Item 8. “Financial Statements and Supplementary Data—Note 1: Basis of Presentation and Summary of Significant Accounting Policies”. Revenues, expenses, and assets are recorded by each segment, and separate financial statements are reviewed by their management and the Company's Segment CEOs.

Reconciliation of Reportable Segment Items

	For the year ended December 31,
	Net interest income									Non-interest income									Total revenues
	2011			2010			2009			2011			2010			2009			2011			2010			2009
	(In thousands)
Total Bank(s) (1)	$	186,006		$	190,104		$	169,802		$	38,738		$	36,084		$	38,521		$	224,744		$	226,188		$	208,323
Total Investment Managers	74			144			177			39,802			36,976			33,192			39,876			37,120			33,369
Total Wealth Advisors	17			(11		)	70			41,082			37,876			34,810			41,099			37,865			34,880
Total Segments	186,097			190,237			170,049			119,622			110,936			106,523			305,719			301,173			276,572
Holding Company and Eliminations	(7,153		)	(9,512		)	(10,564		)	5,348			836			19,926			(1,805		)	(8,676		)	9,362
Total Company	$	178,944		$	180,725		$	159,485		$	124,970		$	111,772		$	126,449		$	303,914		$	292,497		$	285,934
	For the year ended December 31,
	Non-interest expense (2)									Income tax expense/(benefit) (3)									Net income/(loss) from continuing operations
	2011			2010			2009			2011			2010			2009			2011			2010			2009
	(In thousands)
Total Bank(s)	$	151,768		$	149,996		$	144,713		$	19,697		$	(10,219	)	$	4,746		$	40,119		$	(767	)	$	13,905
Total Investment Managers	31,181			29,720			28,221			2,803			2,682			2,236			5,892			4,718			2,912
Total Wealth Advisors	31,472			29,899			25,855			3,526			2,982			3,573			6,101			4,984			5,452
Total Segments	214,421			209,615			198,789			26,026			(4,555		)	10,555			52,112			8,935			22,269
Holding Company and Eliminations	25,712			27,240			24,169			(11,659		)	(14,896		)	(8,923		)	(15,858		)	(21,020		)	(5,884		)
Total Company	$	240,133		$	236,855		$	222,958		$	14,367		$	(19,451	)	$	1,632		$	36,254		$	(12,085	)	$	16,385

	For the year ended December 31,
	Net income from continuing operations attributable to noncontrolling interests						Net income/(loss) attributable to the Company									Amortization of intangibles
	2011		2010		2009		2011			2010			2009			2011		2010		2009
	(In thousands)
Total Bank(s)	$	—	$	—	$	—	$	40,119		$	(767	)	$	13,905		$	404	$	286	$	2,724
Total Investment Managers	1,727		1,383		997		4,165			3,335			1,915			3,319		3,477		3,955
Total Wealth Advisors	1,489		1,231		2,652		4,612			3,753			2,800			1,291		1,395		1,502
Total Segments	3,216		2,614		3,649		48,896			6,321			18,620			5,014		5,158		8,181
Holding Company and Eliminations (4)	—		—		—		(9,759		)	(17,291		)	(13,389		)	—		106		108
Total Company	$	3,216	$	2,614	$	3,649	$	39,137		$	(10,970	)	$	5,231		$	5,014	$	5,264	$	8,289

	As of December 31,
	Assets						AUM (5)
	2011		2010		2009		2011			2010			2009
	(In thousands)						(In millions)
Total Bank(s)	$	5,843,089	$	5,948,100	$	5,669,645	$	3,571		$	3,592		$	3,479
Total Investment Managers	105,629		114,614		112,497		7,594			8,140			7,048
Total Wealth Advisors	80,762		76,774		72,062		7,979			7,836			7,161
Total Segments	6,029,480		6,139,488		5,854,204		19,144			19,568			17,688
Holding Company and Eliminations	18,892		13,413		195,061		(19		)	(19		)	(18		)
Total Company	$	6,048,372	$	6,152,901	$	6,049,265	$	19,125		$	19,549		$	17,670

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(1) In the second quarter of 2011, the Company merged its four Private Banking affiliates into one bank operating under the charter of Boston Private Bank. See Part II. Item 8. "Financial Statements and Supplementary Data-Note 2: Restructuring" for additional details.

(2) Non-interest expense for 2011 includes $8.1 million of restructuring expenses. Restructuring expenses incurred by the Private Banking segment amounted to $5.5 million, with the remaining $2.6 million incurred by the Holding Company.

(3) The Company's effective tax rate for 2011, 2010 and 2009 are not consistent due to earnings from tax-exempt investments, non-deductible compensation, state and local taxes, income tax credits and income attributable to noncontrolling interests having a different impact on the effective tax rate due primarily to the different levels of income or loss before taxes in years 2011, 2010 and 2009. See Part II. Item 8. "Financial Statements and Supplementary Data - Note 18: Income Taxes" for additional details.

(4) Net income/ (loss) from discontinued operations for the years ended December 31, 2011 and 2010 of income of $6.1 million and $3.7 million, respectively, and a loss $7.5 million for the year ended December 31, 2009, are included in Holding Company and Eliminations in the calculation of net loss attributable to the Company.

(5) "AUM" represents Assets Under Management and Advisory at the affiliates.