Reportable Segments

9 Months Ended

Sep. 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 present a reconciliation of the revenues, profits, assets, and other significant items of reportable segments as of and for the three and nine months ended September 30, 2012 and 2011. Interest expense on junior subordinated debentures is reported at the Holding Company.

	Three months ended September 30,
	Net interest income						Non-interest income					Total revenues
	2012			2011			2012		2011			2012			2011
	(In thousands)
Total Bank(s) (1)	$	47,812		$	46,814		$	7,937	$	11,014		$	55,749		$	57,828
Total Investment Managers	6			8			10,043		10,276			10,049			10,284
Total Wealth Advisors (2)	6			7			9,494		8,623			9,500			8,630
Total Segments	47,824			46,829			27,474		29,913			75,298			76,742
Holding Company and Eliminations	(1,458		)	(1,770		)	1,130		(189		)	(328		)	(1,959		)
Total Company	$	46,366		$	45,059		$	28,604	$	29,724		$	74,970		$	74,783

	Three months ended September 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)	$	36,785	$	35,680	$	8,133		$	6,160		$	14,831		$	11,488
Total Investment Managers	7,841		7,839		748			854			1,460			1,591
Total Wealth Advisors (2)	6,806		6,186		996			910			1,698			1,534
Total Segments	51,432		49,705		9,877			7,924			17,989			14,613
Holding Company and Eliminations	6,718		5,211		(4,753		)	(3,382		)	(2,293		)	(3,788		)
Total Company	$	58,150	$	54,916	$	5,124		$	4,542		$	15,696		$	10,825

	Three months ended September 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)	$	—	$	—	$	14,831		$	11,488		$	26	$	26
Total Investment Managers	444		400		1,016			1,191			800		830
Total Wealth Advisors (2)	411		340		1,287			1,194			256		268
Total Segments	855		740		17,134			13,873			1,082		1,124
Holding Company and Eliminations	—		—		(621		)	(2,194		)	—		—
Total Company	$	855	$	740	$	16,513		$	11,679		$	1,082	$	1,124

	As of September 30,										Three months ended September 30,
	Assets				AUM (5)						Depreciation
	2012		2011		2012			2011			2012		2011
	(In thousands)				(In millions)						(In thousands)
Total Bank(s) (1)	$	6,071,302	$	5,812,215	$	3,784		$	3,427		$	1,496	$	1,341
Total Investment Managers	105,349		108,767		8,553			7,127			59		58
Total Wealth Advisors (2)	71,936		68,848		7,797			6,740			91		93
Total Segments	6,248,587		5,989,830		20,134			17,294			1,646		1,492
Holding Company and Eliminations	24,197		34,491		(20		)	(18		)	58		46
Total Company	$	6,272,784	$	6,024,321	$	20,114		$	17,276		$	1,704	$	1,538

	Nine months ended September 30,
	Net interest income						Non-interest income				Total revenues
	2012			2011			2012		2011		2012			2011
	(In thousands)
Total Bank(s) (1)	$	142,467		$	140,163		$	24,233	$	29,507	$	166,700		$	169,670
Total Investment Managers	21			65			29,110		30,730		29,131			30,795
Total Wealth Advisors (2)	19			17			27,900		25,672		27,919			25,689
Total Segments	142,507			140,245			81,243		85,909		223,750			226,154
Holding Company and Eliminations	(4,777		)	(5,441		)	2,824		2,923		(1,953		)	(2,518		)
Total Company	$	137,730		$	134,804		$	84,067	$	88,832	$	221,797		$	223,636

	Nine months ended September 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)	$	108,030	$	114,672	$	19,312		$	12,452		$	37,658		$	26,886
Total Investment Managers	23,351		23,715		1,977			2,409			3,803			4,671
Total Wealth Advisors (2)	20,334		18,912		2,771			2,459			4,814			4,318
Total Segments	151,715		157,299		24,060			17,320			46,275			35,875
Holding Company and Eliminations	17,397		18,588		(9,845		)	(8,761		)	(9,505		)	(12,345		)
Total Company	$	169,112	$	175,887	$	14,215		$	8,559		$	36,770		$	23,530

	Nine months ended September 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)	$	—	$	—	$	37,658		$	26,886		$	79	$	377
Total Investment Managers	1,184		1,196		2,619			3,475			2,401		2,489
Total Wealth Advisors (2)	1,223		1,069		3,591			3,249			783		813
Total Segments	2,407		2,265		43,868			33,610			3,263		3,679
Holding Company and Eliminations	—		—		(3,689		)	(7,535		)	—		—
Total Company	$	2,407	$	2,265	$	40,179		$	26,075		$	3,263	$	3,679

	Nine months ended September 30,
	Depreciation
	2012		2011
	(In thousands)
Total Bank(s) (1)	$	4,364	$	4,074
Total Investment Managers	189		192
Total Wealth Advisors (2)	269		267
Total Segments	4,822		4,533
Holding Company and Eliminations	148		145
Total Company	$	4,970	$	4,678

___________________

(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 nine months ended September 30, 2012 includes $3.6 million and $4.3 million, respectively, of restructuring expense. Non-interest expense for the three and nine months ended September 30, 2011 includes $1.1 million and $7.4 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 from discontinued operations for the three months ended September 30, 2012, and 2011 of $1.7 million, and $1.6 million, respectively, and for the nine months ended September 30, 2012, and 2011, of $5.8 million and $4.8 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.