Reportable Segments

3 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Reportable segments

Management Reporting

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

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, 2015.

Revenues, expenses, and assets are recorded by each segment, and separate financial statements are reviewed by their management and the Company’s segment chief executive officers.

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 months ended March 31, 2016 and 2015. Interest expense on junior subordinated debentures is reported at the Holding Company.

	Three months ended March 31,
	2016			2015
Private Banking	(In thousands)
Net interest income	$	50,420		$	46,990
Fees and other income	3,378			2,784
Total revenues	53,798			49,774
Provision/ (credit) for loan losses	(3,133		)	(2,500		)
Operating expense	31,275			28,805
Income before income taxes	25,656			23,469
Income tax expense	8,374			7,768
Net income from continuing operations	17,282			15,701
Net income attributable to the Company	$	17,282		$	15,701
Assets	$	7,250,371		$	6,688,472
Amortization of intangibles	$	—		$	46
Depreciation	$	1,146		$	1,205

	Three months ended March 31,
	2016			2015
Wealth Management and Trust	(In thousands)
Fees and other income	$	11,056		$	13,957
Operating expense (1)	15,852			12,331
Income/ (loss) before income taxes	(4,796		)	1,626
Income tax expense/ (benefit)	(1,939		)	694
Net income/ (loss) from continuing operations	(2,857		)	932
Net income/ (loss) attributable to the Company	$	(2,857	)	$	932
Assets	$	84,253		$	79,139
AUM	$	7,137,000		$	9,305,000
Amortization of intangibles	$	745		$	571
Depreciation	$	231		$	187

	Three months ended March 31,
	2016		2015
Investment Management	(In thousands)
Net interest income	$	4	$	6
Fees and other income	10,659		11,722
Total revenues	10,663		11,728
Operating expense	8,024		8,686
Income before income taxes	2,639		3,042
Income tax expense	879		1,002
Net income from continuing operations	1,760		2,040
Noncontrolling interests	477		637
Net income attributable to the Company	$	1,283	$	1,403
Assets	$	93,396	$	101,036
AUM	$	9,838,000	$	10,730,000
Amortization of intangibles	$	650	$	739
Depreciation	$	73	$	70

	Three months ended March 31,
	2016		2015
Wealth Advisory	(In thousands)
Net interest income	$	3	$	2
Fees and other income	12,742		12,707
Total revenues	12,745		12,709
Operating expense	9,694		9,132
Income before income taxes	3,051		3,577
Income tax expense	1,148		1,321
Net income from continuing operations	1,903		2,256
Noncontrolling interests	434		588
Net income attributable to the Company	$	1,469	$	1,668
Assets	$	74,901	$	76,042
AUM	$	9,857,000	$	10,012,000
Amortization of intangibles	$	191	$	246
Depreciation	$	215	$	211

	Three months ended March 31,
	2016			2015
Holding Company and Eliminations	(In thousands)
Net interest income	$	(548	)	$	(926	)
Fees and other income	187			175
Total revenues	(361		)	(751		)
Operating expense	1,864			4,473
Income/ (loss) before income taxes	(2,225		)	(5,224		)
Income tax expense/ (benefit)	(1,024		)	(2,213		)
Net income/ (loss) from continuing operations	(1,201		)	(3,011		)
Noncontrolling interests	—			4
Discontinued operations (2)	2,065			2,094
Net income/ (loss) attributable to the Company	$	864		$	(921	)
Assets	$	(89,258	)	$	(74,917	)
AUM	$	(21,000	)	$	(22,000	)
Depreciation	$	11		$	31

	Three months ended March 31,
	2016			2015
Total Company	(In thousands)
Net interest income	$	49,879		$	46,072
Fees and other income	38,022			41,345
Total revenues	87,901			87,417
Provision/ (credit) for loan losses	(3,133		)	(2,500		)
Operating expense	66,709			63,427
Income before income taxes	24,325			26,490
Income tax expense	7,438			8,572
Net income from continuing operations	16,887			17,918
Noncontrolling interests	911			1,229
Discontinued operations	2,065			2,094
Net income attributable to the Company	$	18,041		$	18,783
Assets	$	7,413,663		$	6,869,772
AUM	$	26,811,000		$	30,025,000
Amortization of intangibles	$	1,586		$	1,602
Depreciation	$	1,676		$	1,704

____________

(1) Operating expense for 2016 includes $1.1 million in restructuring expenses related to the Wealth Management and Trust segment. Operating expense for 2015 includes no restructuring expenses.

(2) Net income from discontinued operations for the three month periods ended March 31, 2016 and 2015 of $2.1 million in both periods is included in Holding Company and Eliminations in the calculation of net income attributable to the Company.