Reportable Segments

6 Months Ended

Jun. 30, 2012

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 segments, and the segments are managed separately.

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" in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011.

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

The following tables provide a reconciliation of the revenues, profits, assets, and other significant items of reportable segments as of and for the three and six months ended June 30, 2012 and June 30, 2011. Interest expense on junior subordinated debentures is reported at the Holding Company.

	For the three months ended June 30,
	Net interest income						Non-interest income				Total revenues
	2012			2011			2012		2011		2012			2011
	(In thousands)
Total Bank(s) (1)	$	48,214		$	47,841		$	8,642	$	9,893	$	56,856		$	57,734
Total Investment Managers	7			23			9,583		10,323		9,590			10,346
Total Wealth Advisors (2)	6			5			9,169		8,616		9,175			8,621
Total Segments	48,227			47,869			27,394		28,832		75,621			76,701
Holding Company and Eliminations	(1,631		)	(1,835		)	615		1,820		(1,016		)	(15		)
Total Company	$	46,596		$	46,034		$	28,009	$	30,652	$	74,605		$	76,686

	For the three months ended June 30,
	Non-interest expense (3)				Income tax expense/(benefit)						Net income/(loss) from continuing operations
	2012		2011		2012			2011			2012			2011
	(In thousands)
Total Bank(s) (1)	$	35,612	$	40,718	$	6,529		$	6,566		$	13,015		$	12,640
Total Investment Managers	7,866		7,991		610			818			1,114			1,537
Total Wealth Advisors (2)	6,801		6,276		851			854			1,523			1,491
Total Segments	50,279		54,985		7,990			8,238			15,652			15,668
Holding Company and Eliminations	5,056		5,925		(2,750		)	(4,041		)	(3,322		)	(1,899		)
Total Company	$	55,335	$	60,910	$	5,240		$	4,197		$	12,330		$	13,769

	For the three months ended June 30,
	Net income/ (loss)  attributable to noncontrolling interests				Net income/(loss) attributable to the Company (4)						Amortization of intangibles
	2012		2011		2012			2011			2012		2011
	(In thousands)
Total Bank(s) (1)	$	—	$	—	$	13,015		$	12,640		$	26	$	294
Total Investment Managers	345		416		769			1,121			800		830
Total Wealth Advisors (2)	414		361		1,109			1,130			264		273
Total Segments	759		777		14,893			14,891			1,090		1,397
Holding Company and Eliminations	—		—		(732		)	(346		)	—		—
Total Company	$	759	$	777	$	14,161		$	14,545		$	1,090	$	1,397

	As of June 30,										For the three months ended June 30,
	Assets				AUM (5)						Depreciation
	2012		2011		2012			2011			2012		2011
	(In thousands)				(In millions)						(In thousands)
Total Bank(s) (1)	$	6,066,445	$	5,825,581	$	3,680		$	3,739		$	1,410	$	1,350
Total Investment Managers	105,375		107,906		7,982			8,295			68		66
Total Wealth Advisors (2)	67,512		66,864		7,474			7,175			91		89
Total Segments	6,239,332		6,000,351		19,136			19,209			1,569		1,505
Holding Company and Eliminations	24,911		37,427		(19		)	(20		)	44		46
Total Company	$	6,264,243	$	6,037,778	$	19,117		$	19,189		$	1,613	$	1,551

	For the six months ended June 30,
	Net interest income						Non-interest income				Total revenues
	2012			2011			2012		2011		2012			2011
	(In thousands)
Total Bank(s) (1)	$	94,655		$	93,350		$	16,296	$	18,493	$	110,951		$	111,843
Total Investment Managers	14			56			19,067		20,455		19,081			20,511
Total Wealth Advisors (2)	13			10			18,406		17,049		18,419			17,059
Total Segments	94,682			93,416			53,769		55,997		148,451			149,413
Holding Company and Eliminations	(3,318		)	(3,671		)	1,694		3,111		(1,624		)	(560		)
Total Company	$	91,364		$	89,745		$	55,463	$	59,108	$	146,827		$	148,853

	For the six months ended June 30,
	Non-interest expense (3)				Income tax expense/(benefit)						Net income/(loss) from continuing operations
	2012		2011		2012			2011			2012			2011
	(In thousands)
Total Bank(s) (1)	$	71,246	$	78,992	$	11,178		$	6,292		$	22,827		$	15,399
Total Investment Managers	15,510		15,876		1,228			1,555			2,343			3,080
Total Wealth Advisors (2)	13,528		12,726		1,775			1,549			3,116			2,784
Total Segments	100,284		107,594		14,181			9,396			28,286			21,263
Holding Company and Eliminations	10,678		13,377		(5,090		)	(5,379		)	(7,212		)	(8,558		)
Total Company	$	110,962	$	120,971	$	9,091		$	4,017		$	21,074		$	12,705

	For the six months ended June 30,
	Net income/ (loss)  attributable to noncontrolling interests				Net income/(loss) attributable to the Company (4)						Amortization of intangibles
	2012		2011		2012			2011			2012		2011
	(In thousands)
Total Bank(s) (1)	$	—	$	—	$	22,827		$	15,399		$	53	$	351
Total Investment Managers	740		796		1,603			2,284			1,601		1,659
Total Wealth Advisors (2)	812		729		2,304			2,055			527		545
Total Segments	1,552		1,525		26,734			19,738			2,181		2,555
Holding Company and Eliminations	—		—		(3,068		)	(5,342		)	—		—
Total Company	$	1,552	$	1,525	$	23,666		$	14,396		$	2,181	$	2,555

	For the six months ended  June 30,
	Depreciation
	2012		2011
	(In thousands)
Total Bank(s) (1)	$	2,868	$	2,733
Total Investment Managers	130		134
Total Wealth Advisors (2)	178		174
Total Segments	3,176		3,041
Holding Company and Eliminations	91		99
Total Company	$	3,267	$	3,140

___________________

(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 I. Item 1. "Notes to Unaudited Consolidated Financial Statements - Note 1: Basis of Presentation and Summary of Significant Accounting Policies" for additional details.

(2) In the second quarter of 2012, the Company sold its Wealth Advisory affiliate, DTC. Accordingly, current and prior period results for DTC have been reclassified into discontinued operations and are included with Holding Company and Eliminations in the tables above.

(3) Non-interest expense for the three and six months ended June 30, 2012 includes $0.6 million and $0.7 million, respectively, of restructuring expense. Non-interest expense for the three and six months ended June 30, 2011 includes $4.3 million and $6.3 million, respectively, of restructuring expense. Restructuring expenses have been incurred in the Private Banking segment as well as at the Holding Company.

(4) Net income/ (loss) from discontinued operations for the three months ended June 30, 2012, and 2011 of $2.6 million, and $1.6 million, respectively, and for the six months ended June 30, 2012, and 2011, of $4.1 million and $3.2 million, respectively, 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. AUM at DTC have been removed since DTC operations are classified with discontinued operations.