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 and 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 substantially completed the merger-related restructuring as planned in the first half of 2012.

During the second half of 2012, the Company implemented a senior executive restructuring at the Holding Company and Bank. The purpose of this restructuring was 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 $4.8 million, all during the second half of 2012. The Company expects no additional severance charges associated with this initiative.

Restructuring expenses incurred since the plans of restructuring were first implemented in 2011 totaled $14.0 million with the Private Banking segment incurring $9.5 million, and the remaining $4.5 million incurred by the Holding Company.

The following table presents a summary of the restructuring activity for the three and six months ended June 30, 2014 and 2013:



	Severance Charges			Contract Termination Fees		Professional Expenses			Total
	(In thousands)
Accrued charges at December 31, 2013	$	33		$	—	$	—		$	33
Costs incurred	—			—		—			—
Costs paid	(33		)	—		—			(33		)
Accrued charges at March 31, 2014	—			—		—			—
Costs incurred	—			—		—			—
Costs paid	—			—		—			—
Accrued charges at June 30, 2014	$	—		$	—	$	—		$	—

Accrued charges at December 31, 2012	$	3,517		$	98	$	8		$	3,623
Costs incurred	—			—		—			—
Costs paid	(736		)	—		(8		)	(744		)
Accrued charges at March 31, 2013	2,781			98		—			2,879
Costs incurred	—			—		—			—
Costs paid	(976		)	—		—			(976		)
Accrued charges at June 30, 2013	$	1,805		$	98	$	—		$	1,903