Restructuring

On May 27, 2011, the Company completed the merger of its four private banks, operating in the New England, San Francisco Bay, Southern California and Pacific Northwest markets, under a single Massachusetts charter. During this period of restructuring, the Company sought to reduce expenses by simplifying the portfolio businesses, streamlining the Holding Company structure, while incurring certain merger-related expenses such as severance charges, costs to terminate contracts, legal, audit and consulting costs, and other costs. The Company had substantially completed the merger-related restructuring as planned in the first half of 2012.

During the third quarter of 2012, the Company implemented a senior executive restructuring of the Holding Company and Bank leadership. The purpose of this restructuring is to create a more streamlined organization and to refine the Company's cost base. To implement the new structure the Company incurred an additional severance charge of $3.4 million. The Company estimates that charges associated with continuing to streamline its organizational model may result in additional severance charges of approximately $2.0 to $3.0 million during the fourth quarter of 2012 and/or first half of 2013.

The Company estimates that total charges may result in approximately $14.3 million to $15.3 million in restructuring expense, of which $12.3 million has been expensed in 2011 and for the nine months ended September 30, 2012. Restructuring expenses incurred in 2011 and the nine months ended September 30, 2012 by the Private Banking segment amounted to $8.0 million, with the remaining $4.3 million incurred by the Holding Company.

The following table presents a summary of the restructuring activity for the three and nine months ended September 30, 2012 and 2011.



	Severance Charges			Contract Termination Fees			Professional Expenses			Other Associated Costs			Total
	(In thousands)
Accrued charges at December 31, 2010	$	—		$	—		$	—		$	—		$	—
Costs incurred	1,161			—			815			6			1,982
Costs paid	—			—			(143		)	(6		)	(149		)
Accrued charges at March 31, 2011	1,161			—			672			—			1,833
Costs incurred	2,500			571			783			450			4,304
Costs paid	(394		)	—			(688		)	(450		)	(1,532		)
Accrued charges at June 30, 2011	3,267			571			767			—			4,605
Costs incurred	142			300			459			215			1,116
Costs paid	(298		)	(660		)	(679		)	(215		)	(1,852		)
Accrued charges at September 30, 2011	$	3,111		$	211		$	547		$	—		$	3,869

Accrued charges at December 31, 2011	$	2,658		$	211		$	230		$	—		$	3,099
Costs incurred	(1		)	—			128			8			135
Costs paid	(459		)	—			(254		)	(8		)	(721		)
Accrued charges at March 31, 2012	2,198			211			104			—			2,513
Costs incurred	22			255			183			104			564
Costs paid	(1,039		)	(255		)	(287		)	(104		)	(1,685		)
Accrued charges at June 30, 2012	1,181			211			—			—			1,392
Costs incurred	3,409			147			22			3			3,581
Costs paid	(577		)	(260		)	(22		)	(3		)	(862		)
Accrued charges at September 30, 2012	$	4,013		$	98		$	—		$	—		$	4,111