10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2018

Or

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to .

Commission File Number: 001-35070

BOSTON PRIVATE FINANCIAL HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

Commonwealth of Massachusetts	04-2976299
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)
Ten Post Office Square Boston, Massachusetts	02109
(Address of principal executive offices)	(Zip Code)
Registrant’s telephone number, including area code: (617) 912-1900

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes x No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).     Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer x		Accelerated filer o
Non-accelerated filer o	(Do not check if a smaller reporting company)	Smaller reporting company o
		Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) Yes o No x

APPLICABLE ONLY TO CORPORATE ISSUERS

Indicate the number of shares outstanding of each of the issuer’s classes of common stock as of July 27, 2018:

Common Stock, Par Value $1.00 Per Share	84,565,703
(class)	(outstanding)

BOSTON PRIVATE FINANCIAL HOLDINGS, INC.

FORM 10-Q

TABLE OF CONTENTS

PART I—FINANCIAL INFORMATION
Item 1	Financial Statements (Unaudited)	1
	Consolidated Balance Sheets	1
	Consolidated Statements of Operations	2
	Consolidated Statements of Comprehensive Income	4
	Consolidated Statements of Changes in Shareholders’ Equity	5
	Consolidated Statements of Cash Flows	6
	Notes to Unaudited Consolidated Financial Statements	8
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	47
	Executive Summary	48
	Critical Accounting Policies	49
	Results of Operations	50
	Financial Condition	58
	Condensed Consolidated Balance Sheets and Discussion	58
	Loan Portfolio and Credit Quality	61
	Liquidity	66
	Capital Resources	69
	Recent Accounting Pronouncements	70
Item 3	Quantitative and Qualitative Disclosures about Market Risk	71
Item 4	Controls and Procedures	71
PART II—OTHER INFORMATION
Item 1	Legal Proceedings	72
Item 1A	Risk Factors	72
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	72
Item 3	Defaults upon Senior Securities	73
Item 4	Mine Safety Disclosures	73
Item 5	Other Information	73
Item 6	Exhibits	73
	Signature Page	74
	Certifications

i

PART I. FINANCIAL INFORMATION, ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited)
	June 30, 2018			December 31, 2017
	(In thousands, except share and per share data)
Assets:
Cash and cash equivalents	$	364,539		$	120,541
Investment securities available-for-sale (amortized cost of $1,109,785 and $1,182,427 at June 30, 2018 and December 31, 2017, respectively)	1,076,967			1,170,328
Investment securities held-to-maturity (fair value of $76,747 and $73,781 at June 30, 2018 and December 31, 2017, respectively)	78,955			74,576
Stock in Federal Home Loan Bank and Federal Reserve Bank	70,127			59,973
Loans held for sale	4,622			4,697
Total loans	6,767,123			6,505,028
Less: Allowance for loan losses	73,464			74,742
Net loans	6,693,659			6,430,286
Other real estate owned (“OREO”)	108			—
Premises and equipment, net	46,421			37,640
Goodwill	75,598			75,598
Intangible assets, net	14,584			16,083
Fees receivable	10,405			11,154
Accrued interest receivable	23,732			22,322
Deferred income taxes, net	26,316			29,031
Other assets	230,170			259,515
Total assets	$	8,716,203		$	8,311,744
Liabilities:
Deposits	$	6,620,179		$	6,510,246
Securities sold under agreements to repurchase	58,824			32,169
Federal funds purchased	—			30,000
Federal Home Loan Bank borrowings	1,056,938			693,681
Junior subordinated debentures	106,363			106,363
Other liabilities	129,175			135,880
Total liabilities	7,971,479			7,508,339
Redeemable Noncontrolling Interests	10,747			17,461
Shareholders’ Equity:
Preferred stock, $1.00 par value; authorized: 2,000,000 shares; Series D, 6.95% Non-Cumulative Perpetual, issued and outstanding: zero shares at June 30, 2018 and 50,000 shares at December 31, 2017; liquidation preference: $1,000 per share	—			47,753
Common stock, $1.00 par value; authorized: 170,000,000 shares; issued and outstanding: 84,478,858 shares at June 30, 2018 and 84,208,538 shares at December 31, 2017	84,479			84,208
Additional paid-in capital	613,918			607,929
Retained earnings	56,912			49,526
Accumulated other comprehensive income/ (loss)	(23,328		)	(8,658		)
Total Company’s shareholders’ equity	731,981			780,758
Noncontrolling interests	1,996			5,186
Total shareholders’ equity	733,977			785,944
Total liabilities, redeemable noncontrolling interests and shareholders’ equity	$	8,716,203		$	8,311,744

See accompanying notes to consolidated financial statements.

1

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
	Three months ended June 30,						Six months ended June 30,
	2018			2017			2018			2017
	(In thousands, except share and per share data)
Interest and dividend income:
Loans	$	64,048		$	57,736		$	124,977		$	111,372
Taxable investment securities	1,501			1,592			3,011			3,262
Non-taxable investment securities	1,752			1,655			3,482			3,261
Mortgage-backed securities	3,049			3,495			6,227			6,999
Short-term investments and other	1,205			831			2,214			1,431
Total interest and dividend income	71,555			65,309			139,911			126,325
Interest expense:
Deposits	8,365			4,949			14,889			9,480
Federal Home Loan Bank borrowings	4,447			2,489			7,791			4,600
Junior subordinated debentures	1,008			716			1,854			1,387
Repurchase agreements and other short-term borrowings	190			10			449			71
Total interest expense	14,010			8,164			24,983			15,538
Net interest income	57,545			57,145			114,928			110,787
Provision/ (credit) for loan losses	453			(6,114		)	(1,342		)	(6,295		)
Net interest income after provision/ (credit) for loan losses	57,092			63,259			116,270			117,082
Fees and other income:
Investment management fees	4,227			11,081			15,652			21,920
Wealth advisory fees	13,693			12,961			27,205			25,784
Wealth management and trust fees	11,169			11,161			23,320			21,987
Other banking fee income	2,745			1,964			5,018			3,658
Gain on sale of loans, net	63			59			137			197
Gain/ (loss) on sale of investments, net	7			237			(17		)	256
Gain/ (loss) on OREO, net	—			—			—			(46		)
Other	191			555			523			768
Total fees and other income	32,095			38,018			71,838			74,524
Operating expense:
Salaries and employee benefits	39,433			43,312			86,517			88,977
Occupancy and equipment	8,229			7,283			15,977			14,468
Professional services	2,872			3,106			6,049			6,420
Marketing and business development	2,070			1,971			3,663			3,631
Information systems	6,770			5,500			12,656			10,879
Amortization of intangibles	749			1,426			1,499			2,852
FDIC insurance	708			879			1,452			1,645
Other	3,553			4,344			7,428			7,729
Total operating expense	64,384			67,821			135,241			136,601
Income before income taxes	24,803			33,456			52,867			55,005
Income tax expense	17,399			9,963			23,425			16,516
Net income from continuing operations	7,404			23,493			29,442			38,489
Net income/ (loss) from discontinued operations	(2		)	1,063			1,696			2,695
Net income before attribution to noncontrolling interests	7,402			24,556			31,138			41,184
(Continued)

2

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
	Three months ended June 30,						Six months ended June 30,
	2018			2017			2018			2017
Less: Net income attributable to noncontrolling interests	968			1,150			2,018			2,116
Net income attributable to the Company	$	6,434		$	23,406		$	29,120		$	39,068
Adjustments to net income attributable to the Company to arrive at net income attributable to common shareholders	$	(3,524	)	$	(577	)	$	(3,547	)	$	(1,743	)
Net income attributable to common shareholders for earnings per share calculation	$	2,910		$	22,829		$	25,573		$	37,325
Basic earnings per share attributable to common shareholders:
From continuing operations:	$	0.03		$	0.27		$	0.29		$	0.42
From discontinued operations:	$	—		$	0.01		$	0.02		$	0.03
Total attributable to common shareholders:	$	0.03		$	0.28		$	0.31		$	0.45
Weighted average basic common shares outstanding	83,509,115			82,298,493			83,304,573			82,125,795
Diluted earnings per share attributable to common shareholders:
From continuing operations:	$	0.03		$	0.26		$	0.28		$	0.41
From discontinued operations:	$	—		$	0.01		$	0.02		$	0.03
Total attributable to common shareholders:	$	0.03		$	0.27		$	0.30		$	0.44
Weighted average diluted common shares outstanding	85,413,575			84,741,680			85,221,974			84,658,309

See accompanying notes to consolidated financial statements.

3

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)
	Three months ended June 30,						Six months ended June 30,
	2018			2017			2018			2017
	(In thousands)
Net income attributable to the Company	$	6,434		$	23,406		$	29,120		$	39,068
Other comprehensive income/ (loss), net of tax:
Unrealized gain/ (loss) on securities available-for-sale	(1,953		)	4,380			(14,848		)	6,474
Reclassification adjustment for net realized (gain)/ loss included in net income	—			(141		)	—			(152		)
Net unrealized gain/ (loss) on securities available-for-sale	(1,953		)	4,239			(14,848		)	6,322
Unrealized gain/ (loss) on cash flow hedges	124			(246		)	712			(210		)
Reclassification adjustment for net realized (gain)/ loss included in net income	(187		)	206			(201		)	386
Net unrealized gain/ (loss) on cash flow hedges	(63		)	(40		)	511			176
Net unrealized gain/ (loss) on other	1			—			1			12
Other comprehensive income/ (loss), net of tax	(2,015		)	4,199			(14,336		)	6,510
Total comprehensive income attributable to the Company, net	$	4,419		$	27,605		$	14,784		$	45,578

See accompanying notes to consolidated financial statements.

4

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited)
	Preferred Stock			Common Stock			Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive Income/ (Loss)			Non- controlling Interests			Total
	(In thousands, except share data)
Balance, December 31, 2016	$	47,753		$	83,732		$	597,454		$	47,929		$	(12,548	)	$	4,161		$	768,481
Net income attributable to the Company	—			—			—			39,068			—			—			39,068
Other comprehensive income/ (loss), net	—			—			—			—			6,510			—			6,510
Dividends paid to common shareholders: $0.22 per share	—			—			—			(18,452		)	—			—			(18,452		)
Dividends paid to preferred shareholders	—			—			—			(1,738		)	—			—			(1,738		)
Net change in noncontrolling interests	—			—			—			—			—			214			214
Net proceeds from issuance of:
72,811 shares of common stock	—			73			648			—			—			—			721
87,419 incentive stock grant shares canceled or forfeited and 62,087 shares withheld for employee taxes	—			(150		)	(819		)	—			—			—			(969		)
Exercise of warrants	—			261			1,616			—			—			—			1,877
Amortization of stock compensation and employee stock purchase plan	—			—			4,137			—			—			—			4,137
Stock options exercised	—			99			705			—			—			—			804
Other equity adjustments	—			—			(1,234		)	—			—			—			(1,234		)
Balance at June 30, 2017	$	47,753		$	84,015		$	602,507		$	66,807		$	(6,038	)	$	4,375		$	799,419
Balance, December 31, 2017	$	47,753		$	84,208		$	607,929		$	49,526		$	(8,658	)	$	5,186		$	785,944
Reclassification due to change in accounting principles	—			—			—			334			(334		)	—			—
Net income attributable to the Company	—			—			—			29,120			—			—			29,120
Other comprehensive income/ (loss), net	—			—			—			—			(14,336		)	—			(14,336		)
Dividends paid to common shareholders: $0.24 per share	—			—			—			(20,330		)	—			—			(20,330		)
Dividends paid to preferred shareholders	—			—			—			(1,738		)	—			—			(1,738		)
Net change in noncontrolling interests	—			—			—			—			—			(3,190		)	(3,190		)
Redemption of Series D preferred stock	(47,753		)	—			(2,247		)	—			—			—			(50,000		)
Net proceeds from issuance of:
63,434 shares of common stock	—			63			770			—			—			—			833
126,752 incentive stock grant shares canceled or forfeited and 112,565 shares withheld for employee taxes, net of 2,547 shares of incentive stock grants	—			(236		)	(1,656		)	—			—			—			(1,892		)
Exercise of warrants	—			294			(273		)	—			—			—			21
Amortization of stock compensation and employee stock purchase plan	—			—			3,399			—			—			—			3,399
Stock options exercised	—			150			1,107			—			—			—			1,257
Other equity adjustments	—			—			4,889			—			—			—			4,889
Balance at June 30, 2018	$	—		$	84,479		$	613,918		$	56,912		$	(23,328	)	$	1,996		$	733,977

See accompanying notes to consolidated financial statements.

5

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
	Six months ended June 30,
	2018			2017
	(In thousands)
Cash flows from operating activities:
Net income attributable to the Company	$	29,120		$	39,068
Adjustments to arrive at net income from continuing operations
Net income attributable to noncontrolling interests	2,018			2,116
Less: Net income from discontinued operations	(1,696		)	(2,695		)
Net income from continuing operations	29,442			38,489
Adjustments to reconcile net income from continuing operations to net cash provided by/ (used in) operating activities:
Depreciation and amortization	11,200			10,575
Net income attributable to noncontrolling interests	(2,018		)	(2,116		)
Stock compensation, net of cancellations	3,399			4,137
Provision/ (credit) for loan losses	(1,342		)	(6,295		)
Loans originated for sale	(24,260		)	(19,814		)
Proceeds from sale of loans held for sale	24,486			20,605
Deferred income tax expense/ (benefit)	8,374			1,240
Net decrease/ (increase) in other operating activities	(17,613		)	(6,434		)
Net cash provided by/ (used in) operating activities of continuing operations	31,668			40,387
Net cash provided by/ (used in) operating activities of discontinued operations	1,696			2,695
Net cash provided by/ (used in) operating activities	33,364			43,082
Cash flows from investing activities:
Investment securities available-for-sale:
Purchases	(32,659		)	(99,647		)
Sales	35,550			103,031
Maturities, redemptions, and principal payments	65,712			78,610
Investment securities held-to-maturity:
Purchases	(11,876		)	(14,945		)
Principal payments	7,288			8,745
(Investments)/ distributions in trusts, net	(329		)	(514		)
Purchase of additional Bank Owned Life Insurance (“BOLI”)	—			(50,000		)
(Purchase)/ redemption of Federal Home Loan Bank and Federal Reserve Bank stock	(10,154		)	(1,491		)
Net increase in portfolio loans	(263,692		)	(165,426		)
Proceeds from recoveries of loans previously charged-off	593			3,748
Proceeds from sale of OREO	—			1,644
Capital expenditures, net of sale proceeds	(14,453		)	(6,298		)
Proceeds from sale of affiliate	34,120			—
Net cash provided by/ (used in) investing activities	(189,900		)	(142,543		)
(Continued)

6

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
	Six months ended June 30,
	2018			2017
Cash flows from financing activities:
Net increase/ (decrease) in deposits	109,933			296,193
Net increase/ (decrease) in securities sold under agreements to repurchase	26,655			(30,392		)
Net increase/ (decrease) in federal funds purchased	(30,000		)	(40,000		)
Net increase/ (decrease) in short-term Federal Home Loan Bank borrowings	350,000			(90,000		)
Advances of long-term Federal Home Loan Bank borrowings	91,444			46,235
Repayments of long-term Federal Home Loan Bank borrowings	(78,187		)	(71,451		)
Redemption of Series D preferred stock	(50,000		)	—
Dividends paid to common shareholders	(20,330		)	(18,452		)
Dividends paid to preferred shareholders	(1,738		)	(1,738		)
Proceeds from warrant exercises	21			1,877
Proceeds from stock option exercises	1,257			804
Proceeds from issuance of common stock, net	(1,059		)	(248		)
Distributions paid to noncontrolling interests	(1,958		)	(2,064		)
Other equity adjustments	4,496			(828		)
Net cash provided by/ (used in) financing activities	400,534			89,936
Net increase/ (decrease) in cash and cash equivalents	243,998			(9,525		)
Cash and cash equivalents at beginning of year	120,541			106,557
Cash and cash equivalents at end of period	$	364,539		$	97,032
Supplementary schedule of non-cash investing and financing activities:
Cash paid for interest	$	23,742		$	15,591
Cash paid for income taxes, (net of refunds received)	9,827			16,600
Change in unrealized gain/ (loss) on available-for-sale securities, net of tax	(14,848		)	6,322
Change in unrealized gain/ (loss) on cash flow hedges, net of tax	511			176
Change in unrealized gain/ (loss) on other, net of tax	1			12
Non-cash transactions:
Loans transferred into other real estate owned from loan portfolio	108			—
Loans charged-off	(529		)	(521		)

See accompanying notes to consolidated financial statements.

7

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

1.     Basis of Presentation and Summary of Significant Accounting Policies

Boston Private Financial Holdings, Inc. (the “Company” or “BPFH”), is a bank holding company (the “Holding Company”) with four reportable segments: Private Banking, Wealth Management and Trust, Investment Management, and Wealth Advisory.

The Private Banking segment is comprised of the banking operations of Boston Private Bank & Trust Company (the “Bank” or “Boston Private Bank”), a trust company chartered by The Commonwealth of Massachusetts whose deposits are insured by the Federal Deposit Insurance Corporation (the “FDIC”), and a wholly-owned subsidiary of the Company. Boston Private Bank is a member of the Federal Reserve Bank of Boston. Boston Private Bank primarily operates in three geographic markets: New England, the San Francisco Bay Area, and Southern California.

The Wealth Management and Trust segment is comprised of the operations of Boston Private Wealth LLC (“Boston Private Wealth”), a wholly-owned subsidiary of Boston Private Bank, and the trust operations of Boston Private Bank. The segment offers investment management, wealth management, retirement plan advisory, family office, financial planning, and trust services to individuals, families, and institutions. The Wealth Management and Trust segment operates in New England; Southeast Florida; Naples, Florida; California; and Madison, Wisconsin.

The Investment Management segment had two consolidated affiliates, Dalton, Greiner, Hartman, Maher & Co., LLC (“DGHM”) and Anchor Capital Advisors, LLC (“Anchor”) (together, the “Investment Managers”) included in its results for the first quarter of 2018. The assets and liabilities of Anchor were classified as held for sale as of March 31, 2018 and December 31, 2017. Assets held for sale were $58.8 million at December 31, 2017, and liabilities held for sale were $3.2 million at December 31, 2017. In December 2017, the Company entered into an agreement to sell its entire ownership interest in Anchor in a transaction that would result in Anchor being majority-owned by members of its management team. The transaction closed in April 2018. The Investment Management segment results for the second quarter of 2018 include results from DGHM for the full quarter and results from Anchor for the portion of April before the transaction was closed.

The Wealth Advisory segment has two consolidated affiliates, consisting of KLS Professional Advisors Group, LLC (“KLS”) and Bingham, Osborn & Scarborough, LLC (“BOS”) (together, the “Wealth Advisors” and, together with the Wealth Management and Trust, and Investment Management segments, the “Wealth and Investment businesses”).

The Company conducts substantially all of its business through its four reportable segments. All significant intercompany accounts and transactions have been eliminated in consolidation.

The unaudited interim consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”), and include all necessary adjustments of a normal recurring nature which, in the opinion of management, are required for a fair presentation of the results of operations and financial condition of the Company. The interim results of consolidated operations are not necessarily indicative of the results for the entire year.

The information in this report should be read in conjunction with the consolidated financial statements and accompanying notes included in the Annual Report on Form 10-K for the year ended December 31, 2017, as filed with the Securities and Exchange Commission (“SEC”). Prior period amounts are reclassified whenever necessary to conform to the current period presentation.

The Company’s significant accounting policies are 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, 2017, as filed with the SEC. For interim reporting purposes, the Company follows the same significant accounting policies, except for the following new accounting pronouncements from the Financial Accounting Standards Board (the “FASB”) that were adopted effective January 1, 2018:

• Accounting Standards Update (“ASU”) 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities (“ASU 2017-12”). As a result of implementing this standard, the Company reclassified $5 thousand in unrealized losses on derivatives related to hedge ineffectiveness from accumulated other comprehensive income to retained earnings as of January 1, 2018. This ASU will provide more flexibility in the Company’s risk management activities and we believe it will enhance the Company’s ability to employ risk management strategies, while improving the transparency and understanding of those strategies for financial statement users.

8

• ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (“ASU 2017-07”). This amendment requires an employer to report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. As a result of the retrospective adoption of this ASU, $181 thousand and $341 thousand for the three and six months ended June 30, 2017, respectively, has been reclassified from salaries and employee benefits expense to other expense within the Company’s consolidated statement of operations. For the three and six months ended June 30, 2018, $145 thousand and $280 thousand, respectively, is presented within other expense that would have been presented within salaries and employee benefits prior to adoption of ASU 2017-07.

• ASU 2016-15, Statement of Cash Flows (Topic 230) (“ASU 2016-15”).  This update is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. This ASU is effective for the Company beginning on January 1, 2018. The guidance requires application using a retrospective transition method. This ASU did not have an impact on the Company’s consolidated financial statements.

• ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). This amendment requires equity investments to be measured at fair value with changes in fair value, net of tax, recognized in net income. As a result of implementing this standard, the Company reclassified $339 thousand in unrealized gains on available-for-sale equity investments, net of tax, from accumulated other comprehensive income to retained earnings as of January 1, 2018. Additionally, this amendment requires that entities use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. As a result of implementing this standard, the Company’s updated process includes identifying a fair value for loans using the exit price notion. See Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 5: Fair Value Measurements” for further details.

• ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which was subsequently amended by additional ASUs, including ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) and ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, collectively, “ASU 2014-09 et al.” ASU 2014-09 et al. was adopted using the modified retrospective transition method as of January 1, 2018, however no cumulative effect adjustment was required. This new guidance was applied to all revenue contracts in place at the date of adoption. See Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 13: Revenue Recognition” for further details.

9

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

2.    Earnings Per Share

The treasury stock method of calculating earnings per share (“EPS”) is presented below for the three and six months ended June 30, 2018 and 2017. The following tables present the computations of basic and diluted EPS:

	Three months ended June 30,						Six months ended June 30,
	2018			2017			2018			2017
	(In thousands, except share and per share data)
Basic earnings per share - Numerator:
Net income from continuing operations	$	7,404		$	23,493		$	29,442		$	38,489
Less: Net income attributable to noncontrolling interests	968			1,150			2,018			2,116
Net income from continuing operations attributable to the Company	6,436			22,343			27,424			36,373
Decrease/ (increase) in noncontrolling interests’ redemption values (1)	(408		)	292			438			(5		)
Dividends on preferred stock (2)	(3,116		)	(869		)	(3,985		)	(1,738		)
Total adjustments to income attributable to common shareholders	(3,524		)	(577		)	(3,547		)	(1,743		)
Net income from continuing operations attributable to common shareholders, treasury stock method	2,912			21,766			23,877			34,630
Net income/ (loss) from discontinued operations	(2		)	1,063			1,696			2,695
Net income attributable to common shareholders, treasury stock method	$	2,910		$	22,829		$	25,573		$	37,325
Basic earnings per share - Denominator:
Weighted average basic common shares outstanding	83,509,115			82,298,493			83,304,573			82,125,795
Per share data - Basic earnings per share from:
Continuing operations	$	0.03		$	0.27		$	0.29		$	0.42
Discontinued operations	$	—		$	0.01		$	0.02		$	0.03
Total attributable to common shareholders	$	0.03		$	0.28		$	0.31		$	0.45

10

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

	Three months ended June 30,					Six months ended June 30,
	2018			2017		2018		2017
	(In thousands, except share and per share data)
Diluted earnings per share - Numerator:
Net income from continuing operations attributable to common shareholders, after assumed dilution	$	2,912		$	21,766	$	23,877	$	34,630
Net income/ (loss) from discontinued operations	(2		)	1,063		1,696		2,695
Net income attributable to common shareholders, after assumed dilution	$	2,910		$	22,829	$	25,573	$	37,325
Diluted earnings per share - Denominator:
Weighted average basic common shares outstanding	83,509,115			82,298,493		83,304,573		82,125,795
Dilutive effect of:
Stock options, performance-based and time-based restricted stock, and performance-based and time-based restricted stock units, and other dilutive securities (3)	1,076,049			1,338,939		1,112,938		1,394,605
Warrants to purchase common stock (3)	828,411			1,104,248		804,463		1,137,909
Dilutive common shares	1,904,460			2,443,187		1,917,401		2,532,514
Weighted average diluted common shares outstanding (3)	85,413,575			84,741,680		85,221,974		84,658,309
Per share data - Diluted earnings per share from:
Continuing operations	$	0.03		$	0.26	$	0.28	$	0.41
Discontinued operations	$	—		$	0.01	$	0.02	$	0.03
Total attributable to common shareholders	$	0.03		$	0.27	$	0.30	$	0.44
Dividends per share declared and paid on common stock	$	0.12		$	0.11	$	0.24	$	0.22

_____________________

(1) See Part II. Item 8. “Financial Statements and Supplementary Data - Note 14: Noncontrolling Interests” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 for a description of the redemption values related to the redeemable noncontrolling interests. In accordance with the FASB Accounting Standards Codification (“ASC”) 480, Distinguishing Liabilities from Equity (“ASC 480”), an increase in redemption value from period to period reduces income attributable to common shareholders. Decreases in redemption value from period to period increase income attributable to common shareholders, but only to the extent that the cumulative change in redemption value remains a cumulative increase since adoption of this standard in the first quarter of 2009.

(2) Consideration paid in excess of carrying value for the redemption of the 6.95% Non-Cumulative Perpetual Preferred Stock, Series D (“the Series D preferred stock”) of $2.2 million is considered a deemed dividend and, for purposes of calculating EPS, reduces net income attributable to common shareholders for the three and six month ended June 30, 2018.

(3) The diluted EPS computations for the three and six months ended June 30, 2018 and 2017 do not assume the conversion, exercise, or contingent issuance of the following shares for the following periods because the result would have been anti-dilutive for the periods indicated. As a result of the anti-dilution, the potential common shares excluded from the diluted EPS computation are as follows:

	Three months ended June 30,		Six months ended June 30,
	2018	2017	2018	2017
Shares excluded due to exercise price exceeding the average market price of common shares during the period (total outstanding):	(In thousands)
Potential common shares from:
Stock options	16	54	136	87
Total shares excluded due to exercise price exceeding the average market price of common shares during the period	16	54	136	87

11

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

3.    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, 2017.

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 and six months ended June 30, 2018 and 2017. Interest expense on junior subordinated debentures is reported at the Holding Company.

	Three months ended June 30,					Six months ended June 30,
	2018		2017			2018			2017
Private Banking	(In thousands)
Net interest income	$	58,447	$	57,783		$	116,578		$	112,039
Fees and other income	2,825		2,634			5,300			4,462
Total revenues	61,272		60,417			121,878			116,501
Provision/ (credit) for loan losses	453		(6,114		)	(1,342		)	(6,295		)
Operating expense	39,670		36,904			79,297			71,962
Income before income taxes	21,149		29,627			43,923			50,834
Income tax expense	3,981		9,209			8,594			15,478
Net income from continuing operations	17,168		20,418			35,329			35,356
Net income attributable to the Company	$	17,168	$	20,418		$	35,329		$	35,356
Assets	$	8,637,774	$	7,951,911		$	8,637,774		$	7,951,911
Depreciation	$	2,031	$	1,343		$	3,615		$	2,714

	Three months ended June 30,					Six months ended June 30,
	2018		2017			2018		2017
Wealth Management and Trust	(In thousands)
Fees and other income	$	11,293	$	11,274		$	23,567	$	22,195
Operating expense	11,058		11,937			21,752		25,810
Income/ (loss) before income taxes	235		(663		)	1,815		(3,615		)
Income tax expense/ (benefit)	34		(239		)	509		(1,405		)
Net income/ (loss) from continuing operations	201		(424		)	1,306		(2,210		)
Net income/ (loss) attributable to the Company	$	201	$	(424	)	$	1,306	$	(2,210	)
Assets	$	73,202	$	74,842		$	73,202	$	74,842
Amortization of intangibles	$	701	$	727		$	1,402	$	1,454
Depreciation	$	334	$	341		$	655	$	678

12

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

	Three months ended June 30,				Six months ended June 30,
	2018		2017		2018		2017
Investment Management (1)	(In thousands)
Net interest income	$	2	$	4	$	6	$	8
Fees and other income	4,234		11,091		15,642		21,950
Total revenues	4,236		11,095		15,648		21,958
Operating expense	3,120		8,346		11,645		16,700
Income before income taxes	1,116		2,749		4,003		5,258
Income tax expense	249		894		920		1,738
Net income from continuing operations	867		1,855		3,083		3,520
Noncontrolling interests	202		512		690		974
Net income attributable to the Company	$	665	$	1,343	$	2,393	$	2,546
Assets	$	7,189	$	91,915	$	7,189	$	91,915
Amortization of intangibles	$	—	$	651	$	—	$	1,301
Depreciation	$	32	$	61	$	66	$	127

	Three months ended June 30,				Six months ended June 30,
	2018		2017		2018		2017
Wealth Advisory	(In thousands)
Net interest income	$	77	$	29	$	125	$	46
Fees and other income	13,717		12,980		27,256		25,823
Total revenues	13,794		13,009		27,381		25,869
Operating expense	9,227		8,943		19,763		18,386
Income before income taxes	4,567		4,066		7,618		7,483
Income tax expense	1,214		1,511		2,000		2,798
Net income from continuing operations	3,353		2,555		5,618		4,685
Noncontrolling interests	766		638		1,328		1,142
Net income attributable to the Company	$	2,587	$	1,917	$	4,290	$	3,543
Assets	$	76,175	$	75,247	$	76,175	$	75,247
Amortization of intangibles	$	48	$	48	$	97	$	97
Depreciation	$	164	$	235	$	327	$	461

13

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

	Three months ended June 30,						Six months ended June 30,
	2018			2017			2018			2017
Holding Company and Eliminations	(In thousands)
Net interest income	$	(981	)	$	(671	)	$	(1,781	)	$	(1,306	)
Fees and other income	26			39			73			94
Total revenues	(955		)	(632		)	(1,708		)	(1,212		)
Operating expense	1,309			1,691			2,784			3,743
Income/ (loss) before income taxes	(2,264		)	(2,323		)	(4,492		)	(4,955		)
Income tax expense/ (benefit) (2)	11,921			(1,412		)	11,402			(2,093		)
Net income/ (loss) from continuing operations	(14,185		)	(911		)	(15,894		)	(2,862		)
Discontinued operations	(2		)	1,063			1,696			2,695
Net income/ (loss) attributable to the Company	$	(14,187	)	$	152		$	(14,198	)	$	(167	)
Assets (including eliminations)	$	(78,137	)	$	(86,269	)	$	(78,137	)	$	(86,269	)

	Three months ended June 30,						Six months ended June 30,
	2018			2017			2018			2017
Total Company	(In thousands)
Net interest income	$	57,545		$	57,145		$	114,928		$	110,787
Fees and other income	32,095			38,018			71,838			74,524
Total revenues	89,640			95,163			186,766			185,311
Provision/ (credit) for loan losses	453			(6,114		)	(1,342		)	(6,295		)
Operating expense	64,384			67,821			135,241			136,601
Income before income taxes	24,803			33,456			52,867			55,005
Income tax expense	17,399			9,963			23,425			16,516
Net income from continuing operations	7,404			23,493			29,442			38,489
Noncontrolling interests	968			1,150			2,018			2,116
Discontinued operations	(2		)	1,063			1,696			2,695
Net income attributable to the Company	$	6,434		$	23,406		$	29,120		$	39,068
Assets	$	8,716,203		$	8,107,646		$	8,716,203		$	8,107,646
Amortization of intangibles	$	749		$	1,426		$	1,499		$	2,852
Depreciation	$	2,561		$	1,980		$	4,663		$	3,980

_____________________

(1) Results for the Investment Management segment for the three and six months ended June 30, 2017 include results for DGHM and Anchor. Results for the Investment Management segment for the three and six months ended June 30, 2018 include results for DGHM and results for Anchor through its sale date in April 2018. Assets for the Investment Management Segment at June 30, 2017 include assets of DGHM and Anchor. Assets for the Investment Management segment at June 30, 2018 include assets of DGHM.

(2) Income tax expense/ (benefit) for the three and six months ended June 30, 2018 include $12.7 million in additional expense related to the sale of Anchor in April 2018.

14

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

4.    Investments

The following tables present a summary of investment securities:

	Amortized Cost		Unrealized					Fair Value
			Gains		Losses
	(In thousands)
At June 30, 2018
Available-for-sale securities at fair value:
U.S. government and agencies	$	35,061	$	—	$	(1,361	)	$	33,700
Government-sponsored entities	275,881		—		(6,277		)	269,604
Municipal bonds	297,257		1,722		(3,790		)	295,189
Mortgage-backed securities (1)	493,644		260		(23,372		)	470,532
Other	7,942		—		—			7,942
Total	$	1,109,785	$	1,982	$	(34,800	)	$	1,076,967
Held-to-maturity securities at amortized cost:
U.S. government and agencies	$	11,902	$	2	$	—		$	11,904
Mortgage-backed securities (1)	67,053		—		(2,210		)	64,843
Total	$	78,955	$	2	$	(2,210	)	$	76,747
At December 31, 2017
Available-for-sale securities at fair value:
U.S. government and agencies	$	35,132	$	—	$	(833	)	$	34,299
Government-sponsored entities	305,101		22		(2,622		)	302,501
Municipal bonds	299,647		4,559		(1,148		)	303,058
Mortgage-backed securities (1)	521,753		491		(12,568		)	509,676
Other	20,794		—		—			20,794
Total	$	1,182,427	$	5,072	$	(17,171	)	$	1,170,328
Held-to-maturity securities at amortized cost:
Mortgage-backed securities (1)	$	74,576	$	—	$	(795	)	$	73,781
Total	$	74,576	$	—	$	(795	)	$	73,781

_____________________

(1)  All mortgage-backed securities are guaranteed by the U.S. government, U.S. government agencies, or government-sponsored entities.

The following table presents the maturities of available-for-sale investment securities, based on contractual maturity, as of June 30, 2018. Certain securities are callable before their final maturity. Additionally, certain securities (such as mortgage-backed securities) are shown within the table below based on their final (contractual) maturity, but due to prepayments and amortization are expected to have shorter lives.

	Available-for-sale Securities
	Amortized cost		Fair value
	(In thousands)
Within one year	$	75,733	$	75,473
After one, but within five years	313,162		306,903
After five, but within ten years	312,887		298,202
Greater than ten years	408,003		396,389
Total	$	1,109,785	$	1,076,967

15

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

The following table presents the maturities of held-to-maturity investment securities, based on contractual maturity, as of June 30, 2018.

	Held-to-maturity Securities
	Amortized cost		Fair value
	(In thousands)
Within one year	$	11,902	$	11,904
After one, but within five years	—		—
After five, but within ten years	33,063		32,020
Greater than ten years	33,990		32,823
Total	$	78,955	$	76,747

The following table presents the proceeds from sales, gross realized gains and gross realized losses for available-for-sale securities that were sold or called during the following periods as well as changes in the fair value of equity securities as prescribed by ASC 321, Investment - Equity Securities. ASU 2016-01, Recognition and Measurements of Financial Assets and Financial Liabilities was adopted on January 1, 2018, at which time a cumulative effect adjustment of $339 thousand was recorded to reclassify the amount of accumulated unrealized gains related to equity securities from accumulated other comprehensive income to retained earnings.

	Three months ended June 30,					Six months ended June 30,
	2018		2017			2018			2017
	(In thousands)
Proceeds from sales and calls	$	19,673	$	70,314		$	35,550		$	103,031
Realized gains	—		255			7			274
Realized losses	—		(18		)	(1		)	(18		)
Change in unrealized gain/ (loss) on equity securities reflected in the consolidated statement of operations	7		n/a			(23		)	n/a

The following tables present information regarding securities at June 30, 2018 and December 31, 2017 having temporary impairment, due to the fair values having declined below the amortized cost of the individual securities, and the time period that the investments have been temporarily impaired.

	Less than 12 months					12 months or longer					Total
	Fair value		Unrealized losses			Fair value		Unrealized losses			Fair value		Unrealized losses			# of securities
	(In thousands, except number of securities)
June 30, 2018
Available-for-sale securities
U.S. government and agencies	$	9,861	$	(114	)	$	23,839	$	(1,247	)	$	33,700	$	(1,361	)	6
Government-sponsored entities	212,331		(4,038		)	57,273		(2,239		)	269,604		(6,277		)	40
Municipal bonds	132,307		(1,526		)	49,256		(2,264		)	181,563		(3,790		)	95
Mortgage-backed securities (1)	98,941		(3,400		)	358,348		(19,972		)	457,289		(23,372		)	112
Total	$	453,440	$	(9,078	)	$	488,716	$	(25,722	)	$	942,156	$	(34,800	)	253
Held-to-maturity securities
Mortgage-backed securities (1)	$	48,598	$	(1,643	)	$	16,245	$	(567	)	$	64,843	$	(2,210	)	16
Total	$	48,598	$	(1,643	)	$	16,245	$	(567	)	$	64,843	$	(2,210	)	16

16

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

	Less than 12 months					12 months or longer					Total
	Fair value		Unrealized losses			Fair value		Unrealized losses			Fair value		Unrealized losses			# of securities
	(In thousands, except number of securities)
December 31, 2017
Available-for-sale securities
U.S. government and agencies	$	14,902	$	(79	)	$	19,397	$	(754	)	$	34,299	$	(833	)	6
Government-sponsored entities	220,275		(1,350		)	38,273		(1,272		)	258,548		(2,622		)	36
Municipal bonds	46,112		(131		)	50,842		(1,017		)	96,954		(1,148		)	63
Mortgage-backed securities (1)	97,117		(903		)	386,785		(11,665		)	483,902		(12,568		)	103
Total	$	378,406	$	(2,463	)	$	495,297	$	(14,708	)	$	873,703	$	(17,171	)	208
Held-to-maturity securities
Mortgage-backed securities (1)	$	59,218	$	(534	)	$	14,563	$	(261	)	$	73,781	$	(795	)	16
Total	$	59,218	$	(534	)	$	14,563	$	(261	)	$	73,781	$	(795	)	16

_____________________

(1)  All mortgage-backed securities are guaranteed by the U.S. government, U.S. government agencies, or government-sponsored entities.

As of June 30, 2018, the U.S. government and agencies securities, government-sponsored entities securities and mortgage-backed securities in the first table above had current Standard and Poor’s credit ratings of AAA. The municipal bonds in the first table above had a current Standard and Poor’s credit rating of at least AA-. At June 30, 2018, the Company does not consider these investments other-than-temporarily impaired because the decline in fair value on investments is primarily attributed to changes in interest rates and not credit quality.

At June 30, 2018 and December 31, 2017, the amount of investment securities in an unrealized loss position greater than 12 months, as well as in total, was primarily due to changes in interest rates and not credit quality. As of June 30, 2018, the Company had no intent to sell any securities in an unrealized loss position and it is not more likely than not that the Company would be forced to sell any of these securities prior to the full recovery of all unrealized loss amounts.

Cost method investments, which are included in other assets, can be temporarily impaired when the fair values decline below the amortized costs of the individual investments. There were no cost method investments with unrealized losses as of June 30, 2018 or December 31, 2017. The Company’s cost method investments primarily include low income housing partnerships which generate tax credits. The Company also holds partnership interests in venture capital funds formed to provide financing to small businesses and to promote community development. The Company had $46.0 million and $39.4 million in cost method investments included in other assets as of June 30, 2018 and December 31, 2017, respectively.

5.    Fair Value Measurements

Fair value is defined under GAAP as the exchange price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants on the measurement date. The Company determines the fair values of its financial instruments based on the fair value hierarchy established in ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value. Financial instruments are considered Level 1 when valuation can be based on quoted prices in active markets for identical assets or liabilities. Level 2 financial instruments are valued using quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or models using inputs that are observable or can be corroborated by observable market data of substantially the full term of the assets or liabilities. Financial instruments are considered Level 3 when their values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable and when determination of the fair value requires significant management judgment or estimation.

17

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

The following tables present the Company’s assets and liabilities measured at fair value on a recurring basis as of June 30, 2018 and December 31, 2017, aggregated by the level in the fair value hierarchy within which those measurements fall:

	As of June 30, 2018		Fair value measurements at reporting date using:
			Quoted prices in active markets for identical assets (Level 1)		Significant  other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
	(In thousands)
Assets:
Available-for-sale securities:
U.S. government and agencies	$	33,700	$	33,570	$	130	$	—
Government-sponsored entities	269,604		—		269,604		—
Municipal bonds	295,189		—		295,189		—
Mortgage-backed securities	470,532		—		470,532		—
Other	7,942		7,942		—		—
Total available-for-sale securities	1,076,967		41,512		1,035,455		—
Derivatives - interest rate customer swaps	26,865		—		26,865		—
Derivatives - interest rate swaps	1,197		—		1,197		—
Derivatives - risk participation agreement	24		—		24		—
Derivatives - customer foreign exchange forwards	1		—		1		—
Trading securities held in a “rabbi trust”	7,392		7,392		—		—
Liabilities:
Derivatives - interest rate customer swaps	$	27,290	$	—	$	27,290	$	—
Derivatives - risk participation agreement	113		—		113		—
Derivatives - customer foreign exchange forwards	1		—		1		—
Deferred compensation “rabbi trust”	7,392		7,392		—		—

18

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

			Fair value measurements at reporting date using:
	As of December 31, 2017		Quoted prices in active markets for identical assets (Level 1)		Significant  other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
	(In thousands)
Assets:
Available-for-sale securities:
U.S. government and agencies	$	34,299	$	34,096	$	203	$	—
Government-sponsored entities	302,501		—		302,501		—
Municipal bonds	303,058		—		303,058		—
Mortgage-backed securities	509,676		—		509,676		—
Other	20,794		20,794		—		—
Total available-for-sale securities	1,170,328		54,890		1,115,438		—
Derivatives - interest rate customer swaps	18,575		—		18,575		—
Derivatives - interest rate swaps	555		—		555		—
Derivatives - risk participation agreements	1		—		1		—
Derivatives - customer foreign exchange forwards	2		—		2		—
Trading securities held in a rabbi trust	7,062		7,062		—		—
Liabilities:
Derivatives - interest rate customer swaps	$	18,953	$	—	$	18,953	$	—
Derivatives - interest rate swaps	80		—		80		—
Derivatives - risk participation agreements	108		—		108		—
Derivatives - customer foreign exchange forwards	2		—		2		—
Deferred compensation rabbi trust	7,062		7,062		—		—

As of June 30, 2018 and December 31, 2017, available-for-sale securities consisted of U.S. government and agencies securities, government-sponsored entities securities, municipal bonds, mortgage-backed securities, and other available-for-sale securities. Available-for-sale Level 1 securities are valued with prices quoted in active markets and include U.S. Treasury securities (which are categorized as U.S. government and agencies securities) and equities (which are categorized as other available-for-sale securities). Available-for-sale Level 2 securities generally have quoted prices but are traded less frequently than exchange-traded securities and can be priced using market data from similar assets and include government-sponsored entities securities, municipal bonds, mortgage-backed securities, and certain investments in SBA loans (which are categorized as U.S. government and agencies securities). No investments held as of June 30, 2018 or December 31, 2017 were categorized as Level 3. There were no changes in the valuation techniques used for measuring the fair value of available-for-sale securities in the six months ended June 30, 2018.

In managing its interest rate and credit risk, the Company utilizes derivative instruments including interest rate customer swaps, interest rate swaps, and risk participation agreements. As a service to its customers, the Company may utilize derivative instruments including customer foreign exchange forward contracts to manage its foreign exchange risk, if any. The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities, and therefore, they have been categorized as a Level 2 measurement as of June 30, 2018 and December 31, 2017. See Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 8: Derivatives and Hedging Activities” for further details.

To comply with the provisions of ASC 820, the Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts and guarantees. Counterparty exposure is evaluated by netting positions that are subject to master netting agreements, as well as considering the amount of collateral securing the position.

19

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

The Company has determined that the majority of inputs used to value its derivatives fall within Level 2 of the fair value hierarchy. As a result, the Company has determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy as of June 30, 2018 and December 31, 2017.

Trading securities held in a rabbi trust consist of publicly traded mutual fund investments that are valued at prices quoted in active markets. Therefore, they have been categorized as a Level 1 measurement as of June 30, 2018 and December 31, 2017.

The Company accounts for its investments held in the rabbi trust in accordance with ASC 320, Investments - Debt and Equity Securities. The investments held in the rabbi trust are classified as trading securities. The assets of the rabbi trust are carried at their fair value within Other assets on the consolidated balance sheet. Changes in the fair value of the securities are recorded as an increase or decrease in Other income each quarter. The deferred compensation accrual reflects the market value of the securities and is included within Other liabilities on the consolidated balance sheet. Changes in the fair value of the accrual are recorded as an increase or decrease in Other expense each quarter.

There were no transfers between levels for assets or liabilities recorded at fair value on a recurring basis during the three and six months endedJune 30, 2018 and 2017.

There were no Level 3 assets valued on a recurring basis at June 30, 2018 or December 31, 2017.

The following tables present the Company’s assets and liabilities measured at fair value on a non-recurring basis during the periods ended June 30, 2018 and 2017, respectively, aggregated by the level in the fair value hierarchy within which those measurements fall.

	As of June 30, 2018		Fair value measurements at reporting date using:						Gain (losses) from fair value changes
			Quoted prices in active markets for identical assets (Level 1)		Significant  other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Three months ended June 30, 2018			Six months ended June 30, 2018
	(In thousands)
Assets:
Impaired loans (1)	$	3,051	$	—	$	—	$	3,051	$	(711	)	$	(927	)

_____________________

(1) Collateral-dependent impaired loans held at June 30, 2018 that had write-downs in fair value or whose specific reserve changed during the first six months of 2018.

	As of June 30, 2017		Fair value measurements at reporting date using:						Gain (losses) from fair value changes
			Quoted prices in active markets for identical assets (Level 1)		Significant  other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Three months ended June 30, 2017			Six months ended June 30, 2017
	(In thousands)
Assets:
Impaired loans (1)	$	1,040	$	—	$	—	$	1,040	$	(221	)	$	(219	)

_____________________

(1) Collateral-dependent impaired loans held at June 30, 2017 that had write-downs in fair value or whose specific reserve changed during the first six months of 2017.

20

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

The following tables present additional quantitative information about assets measured at fair value on a non-recurring basis for which the Company has utilized Level 3 inputs to determine fair value:

	As of June 30, 2018
	Fair Value		Valuation Technique	Unobservable Input	Range of Inputs Utilized	Weighted Average of Inputs Utilized
	(In thousands)
Impaired Loans	$	3,051	Appraisals of Collateral	Discount for costs to sell	0% - 24%	9%
				Appraisal adjustments	0% - 20%	7%

	As of June 30, 2017
	Fair Value		Valuation Technique	Unobservable Input	Range of Inputs Utilized	Weighted Average of Inputs Utilized
	(In thousands)
Impaired Loans	$	1,040	Appraisals of Collateral	Discount for costs to sell	0% - 7%	6%
				Appraisal adjustments	0% - 20%	16%

Impaired loans include those loans that were adjusted to the fair value of underlying collateral as required under ASC 310, Receivables. The amount does not include impaired loans that are measured based on expected future cash flows discounted at the respective loan’s original effective interest rate, as that amount is not considered a fair value measurement. The Company uses appraisals, which management may adjust to reflect estimated fair value declines, or apply other discounts to appraised values for unobservable factors resulting from its knowledge of the property or consideration of broker quotes. The appraisers use a market, income, and/or a cost approach in determining the value of the collateral. Therefore they have been categorized as a Level 3 measurement.

The following tables present the carrying values and fair values of the Company’s financial instruments that are not measured at fair value on a recurring basis:

	As of June 30, 2018
	Book Value		Fair Value		Quoted prices  in active markets for identical assets  (Level 1)		Significant  other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
	(In thousands)
FINANCIAL ASSETS:
Cash and cash equivalents	$	364,539	$	364,539	$	364,539	$	—	$	—
Investment securities held-to-maturity	78,955		76,747		11,904		64,843		—
Loans held for sale	4,622		4,691		—		4,691		—
Loans, net	6,693,659		6,680,524		—		—		6,680,524
Other financial assets	104,264		104,264		—		104,264		—
FINANCIAL LIABILITIES:
Deposits	6,620,179		6,617,149		—		6,617,149		—
Securities sold under agreements to repurchase	58,824		58,824		—		58,824		—
Federal Home Loan Bank borrowings	1,056,938		1,053,066		—		1,053,066		—
Junior subordinated debentures	106,363		96,363		—		—		96,363
Other financial liabilities	3,465		3,465		—		3,465		—

21

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

	As of December 31, 2017
	Book Value		Fair Value		Quoted prices  in active markets for identical assets  (Level 1)		Significant  other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
	(In thousands)
FINANCIAL ASSETS:
Cash and cash equivalents	$	120,541	$	120,541	$	120,541	$	—	$	—
Investment securities held-to-maturity	74,576		73,781		—		73,781		—
Loans held for sale	4,697		4,737		—		4,737		—
Loans, net	6,430,286		6,388,297		—		—		6,388,297
Other financial assets	93,449		93,449		—		93,449		—
FINANCIAL LIABILITIES:
Deposits	6,510,246		6,509,197		—		6,509,197		—
Securities sold under agreements to repurchase	32,169		32,169		—		32,169		—
Federal funds purchased	30,000		30,000		—		30,000		—
Federal Home Loan Bank borrowings	693,681		692,402		—		692,402		—
Junior subordinated debentures	106,363		96,363		—		—		96,363
Other financial liabilities	2,224		2,224		—		2,224		—

The estimated fair values have been determined by using available quoted market information or other appropriate valuation methodologies. The aggregate fair value amounts presented above do not represent the underlying value of the financial assets and liabilities of the Company taken as a whole as they do not reflect any premium or discount the Company might recognize if the assets were sold or the liabilities sold, settled, or redeemed. An excess of fair value over book value on financial assets represents a premium, or gain, the Company might recognize if the assets were sold, while an excess of book value over fair value on financial liabilities represents a premium, or gain, the Company might recognize if the liabilities were sold, settled, or redeemed prior to maturity. Conversely, losses would be recognized if assets were sold where the book value exceeded the fair value or liabilities were sold where the fair value exceeded the book value.

The fair value estimates provided are made at a specific point in time, based on relevant market information and the characteristics of the financial instrument. The estimates do not provide for any premiums or discounts that could result from concentrations of ownership of a financial instrument. Because no active market exists for some of the Company’s financial instruments, certain fair value estimates are based on subjective judgments regarding current economic conditions, risk characteristics of the financial instruments, future expected loss experience, prepayment assumptions, and other factors. The resulting estimates involve uncertainties and are considered best estimates. Changes made to any of the underlying assumptions could significantly affect the estimates.

Cash and cash equivalents

The carrying value reported in the balance sheet for cash and cash equivalents approximates fair value due to the short-term nature of their maturities and are classified as Level 1.

Held-to-maturity investment securities

Held-to-maturity securities currently include mortgage-backed securities and U.S. Treasury securities. The U.S Treasury securities as of June 30, 2018 are valued with prices quoted in active markets. Therefore, they have been categorized as a Level 1 measurement. There were no U.S. Treasury securities held-to-maturity as of December 31, 2017. The mortgage-backed securities are fixed income instruments that are not quoted on an exchange, but may be traded in active markets. The fair value of these securities is based on quoted market prices obtained from external pricing services. The principal market for our securities portfolio is the secondary institutional market, with an exit price that is predominantly reflective of bid level pricing in that market.Accordingly, held-to-maturity mortgage-backed securities are included in the Level 2 fair value category.

22

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

Loans held for sale

Loans held for sale are recorded at the lower of cost or fair value in the aggregate. Fair value estimates are based on actual commitments to sell the loans to investors at an agreed upon price or current market prices if rates have changed since the time the loan closed. Accordingly, loans held for sale are included in the Level 2 fair value category.

Loans, net

Fair value estimates are based on loans with similar financial characteristics. Following the adoption of ASU 2016-01 in 2018, the Company updated its process for estimating the fair value of loans, net of allowance for loan losses. The updated process estimates the fair value of loans using the exit price notion, which includes identifying an exit price using current market information for origination rates and making certain adjustments to incorporate credit risk, transaction costs and other adjustments utilizing publicly available rates and indicies. Net loans are included in the Level 3 fair value category based upon the inputs and valuation techniques used. See Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 1: Basis of Presentation and Summary of Significant Accounting Policies” for additional information on ASU 2016-01.

Other financial assets

Other financial assets consist of accrued interest and fees receivable, and stock in the Federal Home Loan Bank of Boston (“FHLB”) and the Federal Reserve Bank (“FRB”), for which the carrying amount approximates fair value, and are classified as Level 2.

Deposits

The fair values reported for transaction accounts (demand, NOW, savings, and money market) equal their respective book values reported on the balance sheet and are classified as Level 2. The fair values disclosed are, by definition, equal to the amount payable on demand at the reporting date. The fair values for certificates of deposit are based on the discounted value of contractual cash flows. The discount rates used are representative of approximate rates currently offered on certificates of deposit with similar remaining maturities and are classified as Level 2.

Securities sold under agreements to repurchase

The fair value of securities sold under agreements to repurchase is estimated based on contractual cash flows discounted at the Bank’s incremental borrowing rate for FHLB borrowings with similar maturities and have been classified as Level 2.

Federal funds purchased

The carrying amounts of federal funds purchased, if any, approximate fair value due to their short-term nature and therefore these funds have been classified as Level 2.

Federal Home Loan Bank borrowings

The fair value reported for FHLB borrowings is estimated based on the discounted value of contractual cash flows. The discount rate used is based on the Bank’s estimated current incremental borrowing rate for FHLB borrowings of similar maturities and therefore these borrowings have been classified as Level 2.

Junior subordinated debentures

The fair value of the junior subordinated debentures issued by Boston Private Capital Trust I and Boston Private Capital Trust II were estimated using Level 3 inputs such as the interest rates on these securities, current rates for similar debt, a consideration for illiquidity of trading in the debt, and regulatory changes that would result in an unfavorable change in the regulatory capital treatment of this type of debt.

Other financial liabilities

Other financial liabilities consists of accrued interest payable for which the carrying amount approximates fair value and is classified as Level 2.

Financial instruments with off-balance sheet risk

The Bank’s commitments to originate loans and for unused lines and outstanding letters of credit are primarily at market interest rates and therefore, the carrying amount approximates fair value.

23

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

6.    Loan Portfolio and Credit Quality

The Bank’s lending activities are conducted principally in the regions of New England, the San Francisco Bay Area, and Southern California. The Bank originates single and multi-family residential loans, commercial real estate loans, commercial and industrial loans, commercial tax-exempt loans, construction and land loans, and home equity and other consumer loans. Most loans are secured by borrowers’ personal or business assets. The ability of the Bank’s single family residential and consumer borrowers to honor their repayment commitments is generally dependent on the level of overall economic conditions within the Bank’s lending areas. Commercial, construction, and land borrowers’ ability to repay is generally dependent upon the health of the economy and real estate values, including, in particular, the performance of the construction sector. Accordingly, the ultimate collectability of a substantial portion of the Bank’s loan portfolio is susceptible to changing conditions in the New England, the San Francisco Bay Area, and Southern California economies and real estate markets.

The following table presents a summary of the loan portfolio based on the portfolio segment as of the dates indicated:

	June 30, 2018		December 31, 2017
	(In thousands)
Commercial and industrial	$	583,193	$	520,992
Commercial tax-exempt	438,882		418,698
Total commercial and industrial	1,022,075		939,690
Commercial real estate	2,504,521		2,440,220
Construction and land	172,024		164,990
Residential	2,808,206		2,682,533
Home equity	91,801		99,958
Consumer and other	168,496		177,637
Total	$	6,767,123	$	6,505,028

The following table presents nonaccrual loans receivable by class of receivable as of the dates indicated:

	June 30, 2018		December 31, 2017
	(In thousands)
Commercial and industrial	$	1,412	$	748
Commercial tax-exempt	—		—
Total commercial and industrial	1,412		748
Commercial real estate	1,838		1,985
Construction and land	—		110
Residential	9,610		8,470
Home equity	2,789		2,840
Consumer and other	2		142
Total	$	15,651	$	14,295

The Bank’s policy is to discontinue the accrual of interest on a loan when the collectability of principal or interest is in doubt. In certain instances, although infrequent, loans that have become 90 days or more past due may remain on accrual status if the value of the collateral securing the loan is sufficient to cover principal and interest and the loan is in the process of collection. There were no loans 90 days or more past due, but still accruing as of both June 30, 2018 and December 31, 2017. The Bank’s policy for returning a loan to accrual status requires the loan to be brought current and for the client to show a history of making timely payments (generally six consecutive months). For troubled debt restructured loans (“TDRs”), a return to accrual status generally requires timely payments for a period of six months in accordance with the restructured loan terms, along with meeting other criteria.

24

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

The following tables show the payment status of loans receivable by class of receivable as of the dates indicated:

	June 30, 2018
	Accruing Past Due						Nonaccrual Loans
	30-59 Days Past Due		60-89 Days Past Due		Total Accruing Past Due		Current		30-89 Days Past Due		90 Days or Greater Past Due		Total Non-Accrual Loans		Current Accruing Loans		Total Loans Receivable
	(In thousands)
Commercial and industrial	$	521	$	—	$	521	$	367	$	203	$	842	$	1,412	$	581,260	$	583,193
Commercial tax-exempt	—		—		—		—		—		—		—		438,882		438,882
Commercial real estate	—		—		—		—		—		1,838		1,838		2,502,683		2,504,521
Construction and land	—		—		—		—		—		—		—		172,024		172,024
Residential	—		3,641		3,641		2,603		800		6,207		9,610		2,794,955		2,808,206
Home equity	473		339		812		—		65		2,724		2,789		88,200		91,801
Consumer and other	—		3		3		—		—		2		2		168,491		168,496
Total	$	994	$	3,983	$	4,977	$	2,970	$	1,068	$	11,613	$	15,651	$	6,746,495	$	6,767,123

	December 31, 2017
	Accruing Past Due						Nonaccrual Loans
	30-59 Days Past Due		60-89 Days Past Due		Total Accruing Past Due		Current		30-89 Days Past Due		90 Days or Greater Past Due		Total Non-Accrual Loans		Current Accruing Loans		Total Loans Receivable
	(In thousands)
Commercial and industrial	$	10,903	$	849	$	11,752	$	355	$	—	$	393	$	748	$	508,492	$	520,992
Commercial tax-exempt	—		—		—		—		—		—		—		418,698		418,698
Commercial real estate	4,043		—		4,043		163		—		1,822		1,985		2,434,192		2,440,220
Construction and land	—		—		—		—		—		110		110		164,880		164,990
Residential	7,239		1,635		8,874		805		3,172		4,493		8,470		2,665,189		2,682,533
Home equity	355		—		355		—		71		2,769		2,840		96,763		99,958
Consumer and other	24		—		24		17		125		—		142		177,471		177,637
Total	$	22,564	$	2,484	$	25,048	$	1,340	$	3,368	$	9,587	$	14,295	$	6,465,685	$	6,505,028

Nonaccrual and delinquent loans are affected by many factors, such as economic and business conditions, interest rates, unemployment levels, and real estate collateral values, among others. In periods of prolonged economic decline, borrowers may become more severely affected over time as liquidity levels decline and the borrower’s ability to continue to make payments deteriorates. With respect to real estate collateral values, the declines from the peak, as well as the value of the real estate at the time of origination versus the current value, can impact the level of problem loans. For instance, if the loan to value ratio at the time of renewal has increased due to the decline in the real estate value since origination, the loan may no longer meet the Bank’s underwriting standards and may be considered for classification as a problem loan dependent upon a review of risk factors.

Generally when a collateral dependent loan becomes impaired, an updated appraisal of the collateral, if appropriate, is obtained. If the impaired loan has not been upgraded to a performing status within a reasonable amount of time, the Bank will continue to obtain updated appraisals as deemed necessary, especially during periods of declining property values.

The past due status of a loan is determined in accordance with its contractual repayment terms. All loan types are reported past due when one scheduled payment is due and unpaid for 30 days or more.

25

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

Credit Quality Indicators

The Bank uses a risk rating system to monitor the credit quality of its loan portfolio. Loan classifications are assessments made by the Bank of the status of the loans based on the facts and circumstances known to the Bank, including management’s judgment, at the time of assessment. Some or all of these classifications may change in the future if there are unexpected changes in the financial condition of the borrower, including but not limited to, changes resulting from continuing deterioration in general economic conditions on a national basis or in the local markets in which the Bank operates adversely affecting, among other things, real estate values. Such conditions, as well as other factors which adversely affect borrowers’ ability to service or repay loans, typically result in changes in loan default and charge-off rates, and increased provisions for loan losses, which would adversely affect the Company’s financial performance and financial condition. These circumstances are not entirely foreseeable and, as a result, it may not be possible to accurately reflect them in the Company’s analysis of credit risk. Generally, only commercial loans, including commercial real estate, other commercial and industrial loans, commercial tax-exempt loans, and construction and land loans, are given a numerical grade.

A summary of the rating system used by the Bank, repeated here from 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, 2017, follows:

Pass - All loans graded as pass are considered acceptable credit quality by the Bank and are grouped for purposes of calculating the allowance for loan losses. For residential, home equity and consumer loans, the Bank classifies loans as pass unless there is known information such as delinquency or client requests for modifications which, due to financial difficulty, would then generally result in a risk rating such as special mention or more severe depending on the factors.

Special Mention - Loans rated in this category are defined as having potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may, at some future date, result in the deterioration of the repayment prospects for the credit or the Bank’s credit position. These loans are currently protected but have the potential to deteriorate to a substandard rating. For commercial loans, the borrower’s financial performance may be inconsistent or below forecast, creating the possibility of liquidity problems and shrinking debt service coverage. In loans having this rating, the primary source of repayment is still good, but there is increasing reliance on collateral or guarantor support. Collectability of the loan is not yet in jeopardy. In particular, loans in this category are considered more variable than other categories, since they will typically migrate through categories more quickly.

Substandard - Loans rated in this category are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. A substandard credit has a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. Substandard loans may be either still accruing or nonaccruing depending upon the severity of the risk and other factors such as the value of the collateral, if any, and past due status.

Doubtful - Loans rated in this category indicate that collection or liquidation in full on the basis of currently existing facts, conditions, and values, is highly questionable and improbable. Loans in this category are usually on nonaccrual and classified as impaired.

The following tables present the loan portfolio’s credit risk profile by internally assigned grade and class of receivable as of the dates indicated:

	June 30, 2018
	By Loan Grade or Nonaccrual Status
	Pass		Special Mention		Accruing Classified (1)		Nonaccrual Loans		Total
	(In thousands)
Commercial and industrial	$	567,334	$	6,845	$	7,602	$	1,412	$	583,193
Commercial tax-exempt	438,882		—		—		—		438,882
Commercial real estate	2,426,821		46,603		29,259		1,838		2,504,521
Construction and land	164,760		—		7,264		—		172,024
Residential	2,797,270		—		1,326		9,610		2,808,206
Home equity	89,012		—		—		2,789		91,801
Consumer and other	168,492		—		2		2		168,496
Total	$	6,652,571	$	53,448	$	45,453	$	15,651	$	6,767,123

26

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

	December 31, 2017
	By Loan Grade or Nonaccrual Status
	Pass		Special Mention		Accruing Classified (1)		Nonaccrual Loans		Total
	(In thousands)
Commercial and industrial	$	496,395	$	12,898	$	10,951	$	748	$	520,992
Commercial tax-exempt	413,139		5,559		—		—		418,698
Commercial real estate	2,346,833		56,947		34,455		1,985		2,440,220
Construction and land	146,514		11,770		6,596		110		164,990
Residential	2,672,714		—		1,349		8,470		2,682,533
Home equity	97,118		—		—		2,840		99,958
Consumer and other	177,494		—		1		142		177,637
Total	$	6,350,207	$	87,174	$	53,352	$	14,295	$	6,505,028

______________________

(1) Accruing Classified includes both Substandard and Doubtful classifications.

27

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

The following tables present, by class of receivable, the balance of impaired loans with and without a related allowance, the associated allowance for those impaired loans with a related allowance, and the total unpaid principal on impaired loans:

	As of and for the three and six months ended June 30, 2018
	Recorded Investment (1)		Unpaid Principal Balance		Related Allowance		QTD Average Recorded Investment		YTD Average Recorded Investment		QTD Interest Income Recognized while Impaired		YTD Interest Income Recognized while Impaired
	(In thousands)
With no related allowance recorded:
Commercial and industrial	$	2,015	$	2,954	n/a		$	2,048	$	1,835	$	14	$	22
Commercial tax-exempt	—		—		n/a		—		—		—		—
Commercial real estate	2,932		4,695		n/a		2,939		2,460		25		50
Construction and land	—		—		n/a		82		94		16		16
Residential	10,455		10,815		n/a		10,587		10,009		87		189
Home equity	—		—		n/a		1,311		1,509		15		24
Consumer and other	—		—		n/a		—		—		—		—
Subtotal	15,402		18,464		n/a		16,967		15,907		157		301
With an allowance recorded:
Commercial and industrial	303		403		$	134	76		147		—		2
Commercial tax-exempt	—		—		—		—		—		—		—
Commercial real estate	5,426		5,855		187		5,467		6,055		72		228
Construction and land	—		—		—		—		—		—		—
Residential	816		816		82		818		821		6		12
Home equity	1,769		1,769		597		469		284		—		—
Consumer and other	—		—		—		—		18		—		3
Subtotal	8,314		8,843		1,000		6,830		7,325		78		245
Total:
Commercial and industrial	2,318		3,357		134		2,124		1,982		14		24
Commercial tax-exempt	—		—		—		—		—		—		—
Commercial real estate	8,358		10,550		187		8,406		8,515		97		278
Construction and land	—		—		—		82		94		16		16
Residential	11,271		11,631		82		11,405		10,830		93		201
Home equity	1,769		1,769		597		1,780		1,793		15		24
Consumer and other	—		—		—		—		18		—		3
Total	$	23,716	$	27,307	$	1,000	$	23,797	$	23,232	$	235	$	546

_____________________

(1) Recorded investment represents the client loan balance net of historical charge-offs and historical nonaccrual interest paid, if applicable, which was applied to principal.

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Notes to Unaudited Consolidated Financial Statements - (Continued)

	As of and for the three and six months ended June 30, 2017
	Recorded Investment (1)		Unpaid Principal Balance		Related Allowance		QTD Average Recorded Investment		YTD Average Recorded Investment		QTD Interest Income Recognized while Impaired		YTD Interest Income Recognized while Impaired
	(In thousands)
With no related allowance recorded:
Commercial and industrial	$	1,771	$	2,377	n/a		$	1,667	$	1,703	$	12	$	25
Commercial tax-exempt	—		—		n/a		1,084		1,859		80		80
Commercial real estate	2,879		6,429		n/a		3,358		3,824		724		970
Construction and land	232		568		n/a		190		181		—		—
Residential	9,600		9,971		n/a		9,561		8,958		78		179
Home equity	—		—		n/a		—		—		—		—
Consumer and other	—		—		n/a		—		—		—		—
Subtotal	14,482		19,345		n/a		15,860		16,525		894		1,254
With an allowance recorded:
Commercial and industrial	—		—		$	—	—		—		—		—
Commercial tax-exempt	—		—		—		—		—		—		—
Commercial real estate	6,996		7,425		453		7,011		7,042		96		171
Construction and land	—		—		—		—		—		—		—
Residential	2,503		2,503		507		2,613		3,312		23		62
Home equity	36		36		21		37		37		—		—
Consumer and other	—		—		—		—		—		—		—
Subtotal	9,535		9,964		981		9,661		10,391		119		233
Total:
Commercial and industrial	1,771		2,377		—		1,667		1,703		12		25
Commercial tax-exempt	—		—		—		1,084		1,859		80		80
Commercial real estate	9,875		13,854		453		10,369		10,866		820		1,141
Construction and land	232		568		—		190		181		—		—
Residential	12,103		12,474		507		12,174		12,270		101		241
Home equity	36		36		21		37		37		—		—
Consumer and other	—		—		—		—		—		—		—
Total	$	24,017	$	29,309	$	981	$	25,521	$	26,916	$	1,013	$	1,487

_____________________

(1) Recorded investment represents the client loan balance net of historical charge-offs and historical nonaccrual interest paid, if applicable, which was applied to principal.

29

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

	As of and for the year ended December 31, 2017
	Recorded Investment (1)		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized while Impaired
	(In thousands)
With no related allowance recorded:
Commercial and industrial	$	1,434	$	2,238	n/a		$	1,594	$	50
Commercial tax-exempt	—		—		n/a		1,001		80
Commercial real estate	1,832		3,453		n/a		3,098		1,546
Construction and land	109		109		n/a		172		—
Residential	9,337		9,709		n/a		9,033		360
Home equity	1,779		1,779		n/a		413		—
Consumer and other	—		—		n/a		—		—
Subtotal	14,491		17,288		n/a		15,311		2,036
With an allowance recorded:
Commercial and industrial	242		242		$	58	156		4
Commercial tax-exempt	—		—		—		—		—
Commercial real estate	6,855		7,284		362		6,980		322
Construction and land	—		—		—		—		—
Residential	828		828		89		2,469		89
Home equity	36		36		20		36		1
Consumer and other	125		250		125		10		—
Subtotal	8,086		8,640		654		9,651		416
Total:
Commercial and industrial	1,676		2,480		58		1,750		54
Commercial tax-exempt	—		—		—		1,001		80
Commercial real estate	8,687		10,737		362		10,078		1,868
Construction and land	109		109		—		172		—
Residential	10,165		10,537		89		11,502		449
Home equity	1,815		1,815		20		449		1
Consumer and other	125		250		125		10		—
Total	$	22,577	$	25,928	$	654	$	24,962	$	2,452

_____________________

(1) Recorded investment represents the client loan balance net of historical charge-offs and historical nonaccrual interest paid, if applicable, which was applied to principal.

When management determines that it is probable that the Bank will not collect all principal and interest on a loan in accordance with the original loan terms, the loan is designated as impaired.

Loans that are designated as impaired require an analysis to determine the amount of impairment, if any. Impairment would be indicated as a result of the carrying value of the loan exceeding the estimated collateral value, less costs to sell, for collateral dependent loans or the net present value of the projected cash flow, discounted at the loan’s contractual effective interest rate, for loans not considered to be collateral dependent. Generally, shortfalls in the analysis on collateral dependent loans would result in the impairment amount being charged-off to the allowance for loan losses. Shortfalls on cash flow dependent loans may be carried as specific allocations to the general reserve unless a known loss is determined to have occurred, in which case such known loss is charged-off.

Loans in the held for sale category are carried at the lower of amortized cost or estimated fair value in the aggregate and are excluded from the allowance for loan losses analysis.

The Bank may, under certain circumstances, restructure loans as a concession to borrowers who are experiencing financial difficulty. Such loans are classified as TDRs and are included in impaired loans. TDRs typically result from the Bank’s loss mitigation activities which, among other things, could include rate reductions, payment extensions, and/or principal

30

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

forgiveness. As of June 30, 2018 and December 31, 2017, TDRs totaled $12.9 million and $13.6 million, respectively. As of June 30, 2018, $10.7 million of the $12.9 million in TDRs were on accrual status. As of December 31, 2017, $11.1 million of the $13.6 million in TDRs were on accrual status.

Since all TDR loans are considered impaired loans, they are individually evaluated for impairment. The resulting impairment, if any, would have an impact on the allowance for loan losses as a specific reserve or charge-off. If, prior to the classification as a TDR, the loan was not impaired, there would have been a general or allocated reserve on the particular loan. Therefore, depending upon the result of the impairment analysis, there could be an increase or decrease in the related allowance for loan losses. Many loans initially categorized as TDRs are already on nonaccrual status and are already considered impaired. Therefore, there is generally not a material change to the allowance for loan losses when a nonaccruing loan is categorized as a TDR.

	As of and for the three and six months ended June 30, 2018
	Restructured Current Quarter					TDRs that defaulted in the Current Quarter that were restructured in prior twelve months
	# of Loans	Pre- modification recorded investment		Post- modification recorded investment		# of Loans	Post- modification recorded investment
	(Dollars in thousands)
Commercial and industrial (1)	1	$	100	$	100	—	$	—
Commercial real estate	—	—		—		—	—
Construction and land	—	—		—		—	—
Residential	—	—		—		—	—
Home equity	—	—		—		—	—
Consumer and other	—	—		—		—	—
Total	1	$	100	$	100	—	$	—

______________________

(1)    Represents the following type of concession: extension of term.

There were no TDR loans that were restructured or defaulted during the three and six months ended June 30, 2017.

Loan participations serviced for others and loans serviced for others are not included in the Company’s total loans. The following table presents a summary of the loan participations serviced for others and loans serviced for others based on class of receivable as of the dates indicated:

	June 30, 2018		December 31, 2017
	(In thousands)
Commercial and industrial	$	8,313	$	8,484
Commercial tax-exempt	19,464		19,805
Commercial real estate	49,200		49,783
Construction and land	32,229		37,840
Total loan participations serviced for others	$	109,206	$	115,912
Residential	$	38,217	$	41,440
Total loans serviced for others	$	38,217	$	41,440

Total loans include deferred loan origination (fees)/ costs, net, of $7.8 million and $6.9 million as of June 30, 2018 and December 31, 2017, respectively.

31

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

7.    Allowance for Loan Losses

The allowance for loan losses is reported as a reduction of outstanding loan balances, and totaled $73.5 million and $74.7 million at June 30, 2018 and December 31, 2017, respectively.

The following tables present a summary of the changes in the allowance for loan losses for the periods indicated:

	As of and for the three months ended June 30,						As of and for the six months ended June 30,
	2018			2017			2018			2017
	(In thousands)
Allowance for loan losses, beginning of period:
Commercial and industrial	$	11,443		$	12,291		$	11,735		$	12,751
Commercial real estate	46,116			51,164			46,820			50,412
Construction and land	4,533			3,197			4,949			3,039
Residential	9,896			10,090			9,773			10,449
Home equity	784			987			835			1,035
Consumer and other	126			302			630			391
Total allowance for loan losses, beginning of period	72,898			78,031			74,742			78,077
Loans charged-off:
Commercial and industrial	(125		)	(218		)	(339		)	(218		)
Commercial real estate	—			—			(135		)	—
Construction and land	—			—			—			—
Residential	—			—			(16		)	(58		)
Home equity	—			—			—			—
Consumer and other	(15		)	(245		)	(39		)	(245		)
Total charge-offs	(140		)	(463		)	(529		)	(521		)
Recoveries on loans previously charged-off:
Commercial and industrial	152			67			234			154
Commercial real estate	50			3,479			175			3,529
Construction and land	—			—			—			—
Residential	27			—			27			47
Home equity	—			—			1			—
Consumer and other	24			9			156			18
Total recoveries	253			3,555			593			3,748
Provision/ (credit) for loan losses:
Commercial and industrial	911			(468		)	751			(1,015		)
Commercial real estate	(983		)	(6,507		)	(1,677		)	(5,805		)
Construction and land	80			388			(336		)	546
Residential	(119		)	192			20			(156		)
Home equity	552			(58		)	500			(106		)
Consumer and other	12			339			(600		)	241
Total provision/(credit) for loan losses	453			(6,114		)	(1,342		)	(6,295		)

32

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

	As of and for the three months ended June 30,				As of and for the six months ended June 30,
	2018		2017		2018		2017
	(In thousands)
Allowance for loan losses at end of period:
Commercial and industrial	12,381		11,672		12,381		11,672
Commercial real estate	45,183		48,136		45,183		48,136
Construction and land	4,613		3,585		4,613		3,585
Residential	9,804		10,282		9,804		10,282
Home equity	1,336		929		1,336		929
Consumer and other	147		405		147		405
Total allowance for loan losses at end of period	$	73,464	$	75,009	$	73,464	$	75,009

The allowance for loan losses is an estimate of the inherent risk of loss in the loan portfolio as of the consolidated balance sheet dates. Management estimates the level of the allowance based on all relevant information available. Changes to the required level in the allowance result in either a provision for loan loss expense, if an increase is required, or a credit to the provision, if a decrease is required. Loan losses are charged to the allowance when available information confirms that specific loans, or portions thereof, are uncollectible. Recoveries on loans previously charged-off are credited to the allowance when received in cash.

The provision/ (credit) for loan losses and related balance in the allowance for loan losses for tax-exempt commercial and industrial loans are included with commercial and industrial. The provision/ (credit) for loan losses and related balance in the allowance for loan losses for tax-exempt commercial real estate loans are included with commercial real estate. There were no charge-offs or recoveries, for any period presented, for both commercial and industrial and commercial real estate tax-exempt loans.

The following tables present the Company’s allowance for loan losses and loan portfolio at June 30, 2018 and December 31, 2017 by portfolio segment, disaggregated by method of impairment analysis. The Company had no loans acquired with deteriorated credit quality at June 30, 2018 or December 31, 2017.

	June 30, 2018
	Individually Evaluated for Impairment				Collectively Evaluated for Impairment				Total
	Recorded investment (loan balance)		Allowance for loan losses		Recorded investment (loan balance)		Allowance for loan losses		Recorded investment (loan balance)		Allowance for loan losses
	(In thousands)
Commercial and industrial	$	2,318	$	134	$	1,019,757	$	12,247	$	1,022,075	$	12,381
Commercial real estate	8,358		187		2,496,163		44,996		2,504,521		45,183
Construction and land	—		—		172,024		4,613		172,024		4,613
Residential	11,271		82		2,796,935		9,722		2,808,206		9,804
Home equity	1,769		597		90,032		739		91,801		1,336
Consumer and other	—		—		168,496		147		168,496		147
Total	$	23,716	$	1,000	$	6,743,407	$	72,464	$	6,767,123	$	73,464

33

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

	December 31, 2017
	Individually Evaluated for Impairment				Collectively Evaluated for Impairment				Total
	Recorded investment (loan balance)		Allowance for loan losses		Recorded investment (loan balance)		Allowance for loan losses		Recorded investment (loan balance)		Allowance for loan losses
	(In thousands)
Commercial and industrial	$	1,676	$	58	$	938,014	$	11,677	$	939,690	$	11,735
Commercial real estate	8,687		362		2,431,533		46,458		2,440,220		46,820
Construction and land	109		—		164,881		4,949		164,990		4,949
Residential	10,165		89		2,672,368		9,684		2,682,533		9,773
Home equity	1,815		20		98,143		815		99,958		835
Consumer and other	125		125		177,512		505		177,637		630
Total	$	22,577	$	654	$	6,482,451	$	74,088	$	6,505,028	$	74,742

8.    Derivatives and Hedging Activities

The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of its assets and liabilities and, to a lesser extent, the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are generally determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to certain loans, deposits, and borrowings. As a service to its customers, the Company may utilize

derivative instruments including customer foreign exchange forward contracts to manage its foreign exchange risk, if any.

The following table presents the fair value of the Company’s derivative financial instruments as well as their classification on the consolidated balance sheets as of June 30, 2018 and December 31, 2017:

	June 30, 2018							December 31, 2017
	Asset derivatives			Liability derivatives				Asset derivatives			Liability derivatives
	Balance sheet location	Fair value (1)		Balance sheet location	Fair value (1)			Balance sheet location	Fair value (1)		Balance sheet location	Fair value (1)
	(In thousands)
Derivatives designated as hedging instruments:
Interest rate products	Other assets	$	1,197	Other liabilities	$	—		Other assets	$	555	Other liabilities	$	(80	)
Derivatives not designated as hedging instruments:
Interest rate products	Other assets	26,865		Other liabilities	(27,290		)	Other assets	18,575		Other liabilities	(18,953		)
Foreign exchange contracts	Other assets	1		Other liabilities	(1		)	Other assets	2		Other liabilities	(2		)
Risk participation agreements	Other assets	24		Other liabilities	(113		)	Other assets	1		Other liabilities	(108		)
Total		$	28,087		$	(27,404	)		$	19,133		$	(19,143	)

_____________________

(1) For additional details, see Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 5: Fair Value Measurements.”

34

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

The following tables present the effect of the Company’s derivative financial instruments on accumulated other comprehensive income for the three and six months ended June 30, 2018 and 2017:

Derivatives in cash flow hedging relationships	Amount of gain or (loss) recognized in OCI on derivatives (1)					Location of (gain) or loss reclassified from accumulated OCI into income	Amount of (gain) or loss reclassified from accumulated OCI into income
	Three months ended June 30,						Three months ended June 30,
	2018		2017				2018			2017
	(In thousands)						(In thousands)
Interest rate products	$	175	$	(425	)	Interest expense	$	(263	)	$	357
Total	$	175	$	(425	)		$	(263	)	$	357

____________________

(1) There was an additional $2 thousand gain related to the ineffective portion for the three months ended as of June 30, 2017.

Derivatives in cash flow hedging relationships	Amount of gain or (loss) recognized in OCI on derivatives (1)					Location of (gain) or loss reclassified from accumulated OCI into income	Amount of (gain) or loss reclassified from accumulated OCI into income
	Six months ended June 30,						Six months ended June 30,
	2018		2017				2018			2017
	(In thousands)						(In thousands)
Interest rate products	$	1,011	$	(358	)	Interest expense	$	(284	)	$	660
Total	$	1,011	$	(358	)		$	(284	)	$	660

____________________

(1) There was an additional $(2) thousand loss related to the ineffective portion for the six months ended as of June 30, 2017. The guidance in ASU 2017-12 requires that amounts in accumulated other comprehensive income that are included in the assessment of effectiveness should be reclassified into earnings in the same period in which the hedged forecasted transactions impact earnings. Transition guidance for this ASU further states that upon adoption, previously recorded cumulative ineffectiveness for cash flow hedges existing at the adoption date be eliminated by means of a cumulative-effect adjustment to accumulated other comprehensive income with a corresponding adjustment to the opening balance of retained earnings as of the initial application date. There was a $5 thousand reclassification related to the adoption of ASU 2017-12 effective January 1, 2018.

The following table presents the effect of the Company’s derivative financial instruments in the consolidated statements of operations for the three and six months ended June 30, 2018 and 2017:

	Location of (gain) or loss reclassified from accumulated OCI into income	Amount of (gain) or loss recognized in income on cash flow hedging relationships				Amount of (gain) or loss recognized in income on cash flow hedging relationships
		Three months ended June 30,				Six months ended June 30,
		2018			2017	2018			2017
		(In thousands)
Total amounts of (income) and expense line items presented in the statement of operations in which the effects of fair value or cash flow hedges are recorded	Interest expense	$	(263	)	n/a	$	(284	)	n/a
The effects of cash flow hedging:
(Gain) or loss on cash flow hedging relationships in ASC 815 Derivatives and Hedging, Subtopic 20 Hedging - general
Interest contracts - amount of (gain) or loss reclassified from accumulated other comprehensive income into income	Interest expense	$	(263	)	n/a	$	(284	)	n/a

The Bank has agreements with its derivative counterparties that contain provisions where, if the Bank defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the

35

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

Bank could also be declared in default on its derivative obligations. The Bank was in compliance with these provisions as of June 30, 2018 and December 31, 2017.

The Bank also has agreements with certain of its derivative counterparties that contain provisions where, if the Bank fails to maintain its status as a well- or adequately-capitalized institution, then the counterparty could terminate the derivative positions and the Bank would be required to settle its obligations under the agreements. The Bank was in compliance with these provisions as of June 30, 2018 and December 31, 2017.

Certain of the Bank’s agreements with its derivative counterparties contain provisions where, if specified, events or conditions occur that materially change the Bank’s creditworthiness in an adverse manner, the Bank may be required to fully collateralize its obligations under the derivative instruments. The Bank was in compliance with these provisions as of June 30, 2018 and December 31, 2017.

As of June 30, 2018 there were no termination amounts related to collateral determinations of derivatives in a liability position and as of December 31, 2017, the termination amount was $3.1 million. The Company has minimum collateral posting thresholds with its derivative counterparties and pledged securities with market values of $1.1 million and $2.3 million, respectively, as of June 30, 2018 and December 31, 2017, against its obligations under these agreements. The collateral posted is typically greater than the current liability position; however, due to timing of liability position changes at period end, the funding of a collateral shortfall may take place shortly following period end.

Cash Flow Hedges of Interest Rate Risk

The Company’s objectives in using interest rate derivatives are to add stability to interest income and expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company has entered into interest rate swaps as part of its interest rate risk management strategy.  These interest rate swaps are designated as cash flow hedges and involve the receipt of variable rate amounts from a counterparty in exchange for the Company making fixed payments.  The Company has entered into interest rate swaps to hedge London Interbank Offered Rate (“LIBOR”) -indexed brokered deposits and the LIBOR component of the total cost of certain FHLB borrowings.

To accomplish this objective and strategy, the Bank has entered into a total of six interest rate swaps, two during 2017 with effective dates of March 22, 2017 and four during 2013 with effective dates of September 2, 2014, June 1, 2014, March 1, 2014, and August 1, 2013.

The two interest rate swaps entered into during 2017 have notional amounts of $40 million and $60 million with terms of 1.75 and 2.25 years, respectively. These interest rate swaps will effectively fix the Bank’s interest payments on $100 million in interest-related cash outflows attributable to changes in the LIBOR component of FHLB borrowing liabilities at rates of 1.55% and 1.65%, respectively, with a weighted average rate of 1.61%. The borrowings hedged will initially be expected to be issuances and quarterly rollovers of three-month FHLB advances but may also then include future issuances of three-month repurchase agreements with similar characteristics and/or future issuances of either floating or fixed rate borrowings that are issued with the specific intent to replace the quarterly rollovers of the advances or repurchase agreements.

The four interest rate swaps entered into during 2013 each have a notional amount of $25 million and have terms ranging from four to six years from their respective effective dates. The interest rate swaps effectively fix the Bank’s interest payments on $100 million of its LIBOR-indexed deposit liabilities at rates between 1.68% and 2.32%, with a weighted average rate of 1.95%.

Prior to the implementation of ASU 2017-12, which was implemented on a modified retrospective basis on January 1, 2018, the Company used the “Hypothetical Derivative Method” described in ASC 815, Derivatives and Hedging (“ASC 815”), for quarterly prospective and retrospective assessments of hedge effectiveness, as well as for measurements of hedge ineffectiveness. Under this method, the Company assessed the effectiveness of each hedging relationship by comparing the changes in cash flows of the derivative hedging instrument with the changes in cash flows of the designated hedged transactions. The effective portion of changes in the fair value of the derivative was initially reported in other comprehensive income (“OCI”) (outside of earnings) and subsequently reclassified to earnings in interest and dividend income when the hedged transactions affect earnings. Ineffectiveness resulting from the hedge was recorded as a gain or loss in the consolidated statement of operations as part of fees and other income.

Upon implementation of ASU 2017-12, for derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in accumulated other comprehensive income and subsequently reclassified into interest expense in the same period during which the hedged transaction affects earnings. A portion of the balance reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made or received on the Company’s interest rate swaps. During the next twelve months, the Company

36

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

estimates that $1.2 million will be reclassified as a decrease in interest expense. The Company monitors the risk of counterparty default on an ongoing basis.

Non-designated Hedges

Derivatives not designated as hedges are not speculative and result from different services the Bank provides to qualified commercial clients. The Bank offers certain derivative products directly to such clients. The Bank economically hedges derivative transactions executed with commercial clients by entering into mirror-image, offsetting derivatives with third parties. Derivative transactions executed as part of these programs are not designated in ASC 815-qualifying hedging relationships and are, therefore, marked-to-market through earnings each period. Because the derivatives have mirror-image contractual terms, the changes in fair value substantially offset through earnings. The net effect on earnings is primarily driven by changes in the credit valuation adjustment (“CVA”). The CVA represents the dollar amount of fair value adjustment related to nonperformance risk of both the Bank and its counterparties. Fees earned in connection with the execution of derivatives related to this program are recognized in the consolidated statement of operations in other income. As of June 30, 2018 and December 31, 2017, the Bank had 156 and 142 derivatives, respectively, related to this program, comprised of interest rate swaps and caps, with an aggregate notional amount of $1.2 billion as of June 30, 2018 and $1.1 billion as of December 31, 2017. As of June 30, 2018, there were eleven foreign currency exchange contracts with an aggregate notional amount of $0.7 million outstanding related to this program, and as of December 31, 2017, there were three foreign currency exchange contracts with an aggregate notional amount of $0.2 million.

In addition, as a participant lender, the Bank has guaranteed performance on the pro-rated portion of swaps executed by other financial institutions. As the participant lender, the Bank is providing a partial guarantee, but is not a direct party to the related swap transactions. The Bank has no obligations under the risk participation agreements unless the borrower defaults on their swap transaction with the lead bank and the swap is in a liability position to the borrower. In that instance, the Bank has agreed to pay the lead bank a portion of the swap’s termination value at the time of the default. The derivative transactions entered into as part of these agreements are not designated, as per ASC 815, as qualifying hedging relationships and are, therefore, marked-to-market through earnings each period. As of June 30, 2018, there were seven of these risk participation transactions with an aggregate notional amount of $60.2 million and, as of December 31, 2017, there were six of these risk participation transactions with an aggregate notional amount of $48.0 million.

The Bank has also participated out to other financial institutions a pro-rated portion of swaps executed by the Bank. The other financial institution has no obligations under the risk participation agreements unless the borrowers default on their swap transactions with the Bank and the swaps are in liability positions to the borrower. In those instances, the other financial institution has agreed to pay the Bank a portion of the swap’s termination value at the time of the default. The derivative transactions entered into as part of these agreements are not designated, as per ASC 815, as qualifying hedging relationships and are, therefore, marked-to-market through earnings each period. As of June 30, 2018, there were three of these risk participation transactions with a pro-rated notional amount of $11.5 million and, as of December 31, 2017, there were two of these risk participation transactions with a pro-rated notional amount of $6.1 million.

The following table presents the effect of the Bank’s derivative financial instruments not designated as hedging instruments in the consolidated statement of operations for the three and six months ended June 30, 2018 and 2017.

		Amount of gain or (loss), net, recognized in income on derivatives
Derivatives not designated as hedging instruments	Location of gain or (loss) recognized in income on derivatives	Three months ended June 30,						Six months ended June 30,
		2018			2017			2018			2017
		(In thousands)
Interest rate products	Other income/ (expense)	$	(139	)	$	(324	)	$	(47	)	$	(646	)
Risk participation agreements	Other income/ (expense)	47			320			213			320
Total		$	(92	)	$	(4	)	$	166		$	(326	)

37

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

9.    Income Taxes

The following table presents the components of income tax expense for continuing operations, discontinued operations, noncontrolling interests and the Company:

	Six months ended June 30,
	2018			2017
	(In thousands)
Income from continuing operations:
Income before income taxes	$	52,867		$	55,005
Income tax expense	23,425			16,516
Net income from continuing operations	$	29,442		$	38,489
Effective tax rate, continuing operations	44.3		%	30.0		%
Income from discontinued operations:
Income before income taxes	$	2,388		$	4,606
Income tax expense	692			1,911
Net income from discontinued operations	$	1,696		$	2,695
Effective tax rate, discontinued operations	29.0		%	41.5		%
Less: Income attributable to noncontrolling interests:
Income before income taxes	$	2,018		$	2,116
Income tax expense	—			—
Net income attributable to noncontrolling interests	$	2,018		$	2,116
Effective tax rate, noncontrolling interests	—		%	—		%
Income attributable to the Company
Income before income taxes	$	53,237		$	57,495
Income tax expense	24,117			18,427
Net income attributable to the Company	$	29,120		$	39,068
Effective tax rate attributable to the Company	45.3		%	32.0		%

The effective tax rate for continuing operations for the six months ended June 30, 2018 of 44.3%, with related tax expense of $23.4 million, was calculated based on a projected 2018 annual effective tax rate. The effective tax rate was more than the statutory rate of 21% due primarily to the sale of Anchor and state and local income taxes. These items were partially offset by earnings from tax-exempt investments and income tax credits. The Company recorded tax expense of $12.7 million on the sale of Anchor in April 2018, which was primarily due to a book to tax basis difference associated with nondeductible goodwill.

The effective tax rate for continuing operations for the six months ended June 30, 2017 of 30.0%, with related tax expense of $16.5 million, was calculated based on a projected 2017 annual effective tax rate. The effective tax rate was less than the statutory rate of 35% due primarily to earnings from tax-exempt investments, income tax credits, and income attributable to noncontrolling interests. These items were partially offset by state and local income taxes.

The effective tax rate for continuing operations for the six months ended June 30, 2018 is more than the effective tax rate for the same period in 2017 due primarily to the sale of Anchor. This item is partially offset by the reduction in the federal corporate tax rate from 35% to 21% as a result of the Tax Cuts and Jobs Act (the “Tax Act”) that was enacted on December 22, 2017.

38

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

10.    Noncontrolling Interests

At the Company, noncontrolling interests consist of equity owned by management of the Company’s respective majority-owned affiliates. Net income attributable to noncontrolling interests in the consolidated statements of operations represents the net income allocated to the noncontrolling interest owners of the affiliates. Net income allocated to the noncontrolling interest owners was $1.0 million and $1.2 million for the three-month periods ended June 30, 2018 and 2017, respectively, and $2.0 million and $2.1 million for the six-month periods ended June 30, 2018 and 2017, respectively.

On the consolidated balance sheets, noncontrolling interests are included as the sum of the capital and undistributed profits allocated to the noncontrolling interest owners. Typically, this balance is included in a company’s permanent shareholders’ equity in the consolidated balance sheets. When the noncontrolling interest owners’ rights include certain redemption features, as described in ASC 480, Distinguishing Liabilities from Equity, such redeemable noncontrolling interests are classified as mezzanine equity and are not included in permanent shareholders’ equity. Due to the redemption features of the noncontrolling interests, the Company had redeemable noncontrolling interests held in mezzanine equity in the accompanying consolidated balance sheets of $10.7 million and $17.5 million at June 30, 2018 and December 31, 2017, respectively. The aggregate amount of such redeemable noncontrolling equity interests are recorded at the estimated maximum redemption values. In addition, the Company had $2.0 million and $5.2 million in noncontrolling interests included in permanent shareholder’s equity at June 30, 2018 and December 31, 2017, respectively.

Each non-wholly owned affiliate operating agreement provides the Company and/or the noncontrolling interests with contingent call or put redemption features used for the orderly transfer of noncontrolling equity interests between the affiliate noncontrolling interest owners and the Company at either a contractually predetermined fair value; multiple of earnings before interest, taxes, depreciation, and amortization (EBITDA); or fair value. The Company may liquidate these noncontrolling interests in cash, shares of the Company’s common stock, or other forms of consideration dependent on the operating agreement. These agreements are discussed in Part II. Item 8. “Financial Statements and Supplementary Data - Note 14: Noncontrolling Interests” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.

Generally, these put and call redemption features refer to shareholder rights of both the Company and the noncontrolling interest owners of the Company’s majority-owned affiliate companies. The affiliate company noncontrolling interests generally take the form of limited liability company (LLC) units, profits interests, or common stock (collectively, the “noncontrolling equity interests”). In most circumstances, the put and call redemption features generally relate to the Company’s right and, in some cases, obligation to purchase and the noncontrolling equity interests’ right to sell their equity interests. There are various events that could cause the puts or calls to be exercised, such as a change in control, death, disability, retirement, resignation or termination. The puts and calls are generally to be exercised at the then fair value or a contractually agreed upon approximation thereof. The terms of these rights vary and are governed by the respective individual operating and legal documents.

The following table presents, by affiliate, the noncontrolling interests included as redeemable noncontrolling interests and noncontrolling interests in mezzanine and permanent equity, respectively, at the periods indicated:

	June 30, 2018		December 31, 2017
	(In thousands)
Anchor (1)	$	—	$	9,761
BOS	8,352		8,057
DGHM (2)	4,391		4,829
Total	$	12,743	$	22,647
Redeemable noncontrolling interests	$	10,747	$	17,461
Noncontrolling interests	$	1,996	$	5,186

_____________________

(1) Assets and liabilities at Anchor were classified as held for sale on the Company’s consolidated balance sheets at December 31, 2017. The Company completed the sale of Anchor in April 2018.

(2)    Only includes redeemable noncontrolling interests.

39

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

The following tables present a rollforward of the Company’s redeemable noncontrolling interests and noncontrolling interests for the periods indicated:

	Three months ended						Six months ended
	June 30, 2018						June 30, 2018
	Redeemable noncontrolling interests			Noncontrolling interests			Redeemable noncontrolling interests			Noncontrolling interests
	(In thousands)
Noncontrolling interests at beginning of period	$	16,322		$	4,825		$	17,461		$	5,186
Net income attributable to noncontrolling interests	732			236			1,491			527
Distributions	(712		)	(227		)	(1,449		)	(509		)
Purchases/ (sales) of ownership interests	(6,520		)	(3,051		)	(6,353		)	(3,051		)
Amortization of equity compensation	126			—			248			161
Adjustments to fair value	799			213			(651		)	(318		)
Noncontrolling interests at end of period	$	10,747		$	1,996		$	10,747		$	1,996

	Three months ended						Six months ended
	June 30, 2017						June 30, 2017
	Redeemable noncontrolling interests			Noncontrolling interests			Redeemable noncontrolling interests			Noncontrolling interests
	(In thousands)
Noncontrolling interests at beginning of period	$	17,232		$	3,993		$	16,972		$	4,161
Net income attributable to noncontrolling interests	859			291			1,583			533
Distributions	(842		)	(284		)	(1,545		)	(519		)
Purchases/ (sales) of ownership interests	66			—			132			—
Amortization of equity compensation	102			250			204			506
Adjustments to fair value	(201		)	125			(130		)	(306		)
Noncontrolling interests at end of period	$	17,216		$	4,375		$	17,216		$	4,375

40

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

11.    Accumulated Other Comprehensive Income

The following table presents a summary of the amounts reclassified from accumulated other comprehensive income/ (loss) for the three and six months ended June 30, 2018 and 2017:

Description of component of accumulated other comprehensive income/ (loss)	Three months ended June 30,						Six months ended June 30,						Affected line item in Statement of Operations
	2018			2017			2018			2017
	(In thousands)						(In thousands)
Adjustment for realized (gains)/ losses on available-for-sale securities, net:
Pre-tax	$	—		$	(237	)	$	—		$	(256	)	(Gain)/ loss on sale of investments, net
Tax expense/ (benefit)	—			96			—			104			Income tax expense/ (benefit)
Net	$	—		$	(141	)	$	—		$	(152	)	Net (income)/ loss attributable to the Company
Net realized (gain)/ loss on cash flow hedges:
Hedges related to deposits and borrowings:
Pre-tax	$	(263	)	$	357		$	(284	)	$	660		Interest (income)/ expense on deposits and borrowings
Pre-tax	—			(2		)	—			1			Other (income)/ expense
Tax expense/ (benefit)	76			(149		)	83			(275		)	Income tax expense/ (benefit)
Net	$	(187	)	$	206		$	(201	)	$	386		Net (income)/ loss attributable to the Company
Total reclassifications for the period, net of tax	$	(187	)	$	65		$	(201	)	$	234

On January 1, 2018, the Company elected to early adopt ASU No. 2017-12. As a result, the Company reclassified unrealized losses on cash flow hedges of $5 thousand from accumulated other comprehensive income/ (loss) to beginning retained earnings.

On January 1, 2018, the Company adopted ASU No. 2016-01. As a result, the Company reclassified unrealized gains on equity securities available-for-sale, net of tax, of $339 thousand from accumulated other comprehensive income/ (loss) to beginning retained earnings.

41

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

	Components of accumulated other comprehensive income/ (loss)
	Unrealized gain/ (loss) on securities available-for-sale			Unrealized gain/ (loss) on cash flow hedges			Unrealized gain/ (loss) on other			Accumulated other comprehensive income/ (loss)
	(In thousands)
Balance at December 31, 2016	$	(11,194	)	$	(605	)	$	(749	)	$	(12,548	)
Other comprehensive income/ (loss) before reclassifications	6,474			(210		)	12			6,276
Amounts reclassified from other comprehensive income/ (loss)	(152		)	386			—			234
Other comprehensive income/ (loss), net	6,322			176			12			6,510
Balance at June 30, 2017	$	(4,872	)	$	(429	)	$	(737	)	$	(6,038	)
Balance at December 31, 2017	$	(8,140	)	$	332		$	(850	)	$	(8,658	)
Other comprehensive income/ (loss) before reclassifications	(14,848		)	712			1			(14,135		)
Amounts reclassified from other comprehensive income/ (loss)	—			(201		)	—			(201		)
Other comprehensive income/ (loss), net	(14,848		)	511			1			(14,336		)
Reclassification due to the adoption of ASUs 2017-12 and 2016-01	(339		)	5			—			(334		)
Balance at June 30, 2018	$	(23,327	)	$	848		$	(849	)	$	(23,328	)

12.    Restructuring

In the fourth quarter of 2014, the Company incurred restructuring charges related to the acquisition of Banyan Partners, LLC. The purpose of this restructuring was to realign the management structure within the Wealth Management and Trust segment. The total cost of the restructuring incurred in Q4 2014 was $0.7 million. In 2015, the Company incurred additional restructuring charges to further refine the management structure within the Wealth Management and Trust segment. The total cost of the restructuring charges in 2015 was $3.7 million.

In the first and second quarters of 2016, the Company incurred additional costs of $1.1 million and $0.9 million, respectively, in continued refinement of the management structure within the Wealth Management and Trust segment. The Company does not anticipate any additional restructuring costs related to this plan as of the date of this filing.

Restructuring expenses incurred since the plan of restructuring was first implemented in 2014 totaled $6.4 million, all within the Wealth Management and Trust segment.

The following table presents a summary of the restructuring activity for the three and six months ended June 30, 2018 and 2017:

	Severance Charges			Total
	(In thousands)
Accrued charges at December 31, 2017	$	337		$	337
Costs paid	(254		)	(254		)
Accrued charges at March 31, 2018	83			83
Costs paid	(83		)	(83		)
Accrued charges at June 30, 2018	$	—		$	—
Accrued charges at December 31, 2016	$	1,977		$	1,977
Costs paid	(618		)	(618		)
Accrued charges at March 31, 2017	1,359			1,359
Costs paid	(335		)	(335		)
Accrued charges at June 30, 2017	$	1,024		$	1,024

42

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

13.    Revenue Recognition

On January 1, 2018, the Company adopted ASU 2014-09 et al. As stated in Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 1: Basis of Presentation and Summary of Significant Accounting Policies,” the implementation of the new standard did not have a material impact on the measurement or recognition of revenue; as such, a cumulative effect adjustment to opening retained earnings was not deemed necessary. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, Revenue from Contracts with Customers (“ASC 606”), while prior period amounts were not adjusted and continue to be reported in accordance with our historic accounting under ASC 605, Revenue Recognition.

ASC 606 does not apply to revenue associated with financial instruments, including interest income on loans and investment securities. In addition, certain noninterest income such as fees associated with mortgage servicing rights, late fees, BOLI income, and derivatives are also not in scope of the new guidance. ASC 606 is applicable to noninterest income such as investment management fees, wealth advisory fees, wealth management and trust fees, and certain banking fees. However, the recognition of this revenue did not change upon adoption of ASC 606. Substantially all of the Company’s revenue is generated from contracts with customers. Noninterest income considered in-scope of ASC 606 is discussed below.

Investment management fees

Investment management fees are earned for the management of a series of accounts and funds in which clients invest directly, acting as a sub-advisor to larger investment management companies, or private client account management. The Company’s performance obligation is satisfied over time and the resulting fees are recognized monthly, based upon either the beginning-of quarter (in advance) or quarter-end (in arrears) market value of the assets under management and the applicable fee rate, depending on the terms of the contract. Payment is generally received a few days after month end through a direct charge to customers’ accounts. The Company may earn performance-based incentives on certain contracts. Receivables are recorded on the consolidated balance sheet in the fees receivable line item.

All of the investment management fee income on the consolidated statement of operations for the three and six months ended June 30, 2018 and 2017 is considered in-scope of ASC 606.

Wealth advisory fees

Wealth advisory fees are earned for providing financial advisory services to clients. The Company’s performance obligation under these contracts is satisfied over time as the financial advisory services are provided. Fees are recognized monthly based either on a fixed fee amount or are based on the quarter-end (in arrears) market value of the assets under management and the applicable fee rate (“asset based fees”), depending on the terms of the contract. Payment on fixed fee contracts is received based on a schedule outlined in the contract, while payment on asset based fees are generally received a few days after quarter end through a direct charge to customers’ accounts. No performance based incentives are earned on wealth advisory contracts. Receivables are recorded on the consolidated balance sheet in the fees receivable line item. Deferred revenues related to the fixed fee contracts of $6.7 million and $6.6 million at June 30, 2018 and December 31, 2017, respectively, are recorded on the consolidated balance sheet within the other liabilities line item.

All of the wealth advisory fee income on the consolidated statement of operations for the three and six months ended June 30, 2018 and 2017 is considered in-scope of ASC 606.

Wealth management and trust fees

Wealth management and trust fees are earned for providing investment management, wealth management, retirement plan advisory, family office, financial planning, and trust services to clients. The Company’s performance obligation under these contracts is satisfied over time as the wealth management services are provided. Fees are recognized monthly based on the average monthly, beginning-of-quarter, or, for a small number of clients, end-of-quarter market value of the assets under management and the applicable fee rate, depending on the terms of the contract. No performance based incentives are earned on wealth management contracts. Receivables are recorded on the consolidated balance sheet in the fees receivable line item.

Trust fees are earned when the Company is appointed as trustee for clients. As trustee, the Company administers the client’s trust and manages the assets of the trust including investments and property. The Company’s performance obligation under these agreements is satisfied over time as the administration and management services are provided. Fees are recognized monthly based on a percentage of the market value of the account as outlined in the agreement. Payment frequency is defined in the individual contracts which primarily stipulate monthly in arrears. No performance based incentives are earned on trust fee contracts. Receivables are recorded on the consolidated balance sheet in the fees receivable line item.

43

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

All of the wealth management and trust fee income on the consolidated statement of operations for the three and six months ended June 30, 2018 and 2017 is considered in-scope of ASC 606.

Other banking fee income

The Bank charges a variety of fees to its clients for services provided on the deposit and deposit management related accounts. Each fee is either transaction-based or assessed monthly. The types of fees include service charges on accounts, overdraft fees, maintenance fees, ATM fee charges, credit card charges, and other miscellaneous charges related to the accounts. These fees are not governed by individual contracts with clients. They are charges to clients based on disclosures presented to clients upon opening these accounts along with updated disclosures when changes are made to the fee structures. The transaction-based fees are recognized in revenue when charged to the client based on specific activity on the client’s account. Monthly service/maintenance charges are recognized in the month they are earned and are charged directly to the client’s account.

The Bank also charges fees for treasury activities such as foreign exchange fees for clients with a banking relationship. These fees are recorded when earned via completion of the transaction for the client. The completion of the transaction is deemed to be the performance obligation of the transaction. The related revenue is recorded through a direct charge to the client’s account. There are no individual agreements or contracts with clients as it relates to foreign exchange fees as they are governed by client disclosure statements and the Bank’s internal policies and procedures.

For the three months ended June 30, 2018 and 2017, $1.1 million and $0.9 million, respectively, of other banking fee income as described above is considered in-scope for ASC 606. For the six months endedJune 30, 2018 and 2017, $2.0 million and $1.8 million, respectively, of other banking fee income as described above is considered in-scope for ASC 606.

14.    Recent Accounting Pronouncements

In May 2014 and at various other dates after May 2014, the FASB issued ASU 2014-09 et al. Under the new standard, a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration which the company expects to receive in exchange for those goods or services. ASU 2014-09 et al. does not apply to revenue associated with financial instruments such as loans and securities. On January 1, 2018, the Company adopted ASU 2014-09 et al. using the modified retrospective transition method, however no cumulative effect adjustment to opening retained earnings as of January 1, 2018 was required. For additional disclosure details, see Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 1: Basis of Presentation and Summary of Significant Accounting Policies and Note 13: Revenue Recognition.”

In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Instruments - Going Concern (“ASU 2014-15”). ASU 2014-15 requires management to evaluate an entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. Management must evaluate whether conditions and events raise substantial doubt about an entity’s ability to continue as a going concern and then whether its plans alleviate that doubt. ASU 2014-15 was effective in 2016 and management performed the required evaluation and concluded that there were no such conditions or events that raised substantial doubt about the Company’s ability to continue as a going concern.

In January 2016, the FASB issued ASU 2016-01. This ASU requires equity investments to be measured at fair value with changes in fair value, net of tax, recognized in net income. As a result of implementing this standard, the Company reclassified $339 thousand in unrealized gains on available-for-sale equity investments, net of tax, from accumulated other comprehensive income to retained earnings as of January 1, 2018. Additionally, this amendment requires that entities use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. As a result of implementing this standard, the Company’s updated process includes identifying a fair value for loans using the exit price notion. See Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 5: Fair Value Measurements” for further details.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This ASU update amends current lease accounting and requires all leases, other than short-term leases, to be reported on the balance sheet through the recognition of a right-of-use asset and a corresponding liability for future lease obligations. The amended guidance will be effective for fiscal years beginning after December 15, 2018, including interim periods within those annual periods and will require transition utilizing a modified retrospective approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. Early adoption of this ASU is permitted although the Company does not plan to early adopt. The Company does not anticipate a material impact to revenue or operating expenses as a result of the adoption of this ASU. The Company expects that this ASU will gross up the assets and liabilities on the balance sheet related to the lease assets and liabilities and reduce regulatory capital ratios.

44

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

In March 2016, the FASB issued ASU 2016-09, Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This update is intended to simplify several aspects of the accounting for employee share-based plans such as income tax consequences, classification of awards as either liabilities or equity on the balance sheet, and classification on the statement of cash flows. This ASU was effective for fiscal years beginning after December 15, 2016, including interim periods within those years. The Company adopted this ASU on January 1, 2017. The adoption of this ASU has resulted in, and will continue to result in, fluctuations in the Company’s earnings due to changes in the Company’s stock price between issuance date and settlement date of employee share-based transactions. In addition, the Company anticipates that certain stock options will expire unexercised, due to having no intrinsic value, and this ASU requires the previous tax benefits to be reversed.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments (Topic 326) (“ASU 2016-13”). This update is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This ASU will be effective for fiscal years beginning after December 15, 2019. Early adoption is available as of the fiscal year beginning after December 15, 2018. The Company does not plan on adopting early. The impact of this ASU on the Company’s consolidated financial statements will depend on factors at the time of adoption such as the balance and type of loans on the balance sheet, the Company’s loan loss history, and various qualitative factors.

In August 2016, the FASB issued ASU 2016-15.  This update is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. This ASU was effective for the Company beginning on January 1, 2018. Early adoption was permitted, provided that all of the amendments are adopted in the same period, however the Company did not early adopt. The guidance requires application using a retrospective transition method. This ASU did not have an impact on the Company’s consolidated financial statements.

In March 2017, the FASB issued ASU 2017-07. This amendment requires an employer to report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. This ASU was effective for fiscal years beginning after December 15, 2017, and interim periods within those years. As a result of the adoption of this ASU, $181 thousand and $341 thousand, respectively, has been reclassified from salaries and employee benefits expense to other expense within the Company’s consolidated statement of operations for the three and six months ended June 30, 2017. For the three and six months ended June 30, 2018, $145 thousand and $280 thousand, respectively, is presented within other expense that would have been presented within salaries and employee benefits prior to adoption of ASU 2017-07.

In March 2017, the FASB issued ASU 2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities (“ASU 2017-08”). This update amends the amortization period for certain purchased callable debt securities held at a premium. The amortization period for the premium on such securities is being shortened to the earliest call date. Under current GAAP, entities generally amortize the premium as an adjustment of yield over the contractual life of the instrument. ASU 2017-08 is effective for fiscal years beginning after December 15, 2018, and interim periods within those years. Early adoption is permitted, including in an interim period. The guidance requires application using a modified retrospective transition method through a cumulative-effect adjustment to beginning retained earnings. The Company early adopted this ASU as of July 1, 2017, which had an immaterial impact on the consolidated financial statements.

In August 2017, the FASB issued ASU 2017-12. The standard is intended to improve the transparency and understandability of information conveyed to financial statement users about an entity’s risk management activities by better aligning the entity’s financial reporting for hedging relationships with those risk management activities and to reduce the complexity of and simplify the application of hedge accounting by preparers. ASU No. 2017-12 is effective for interim and annual reporting periods beginning after December 15, 2018 and early adoption is permitted. The Company elected to early adopt this ASU as of January 1, 2018 with a modified retrospective transition. As a result of implementing this standard, the Company reclassified $5 thousand in unrealized losses on derivatives from accumulated other comprehensive income to retained earnings as of January 1, 2018. This ASU will provide more flexibility in the Company’s risk management activities and we believe it will enhance the Company’s ability to employ risk management strategies, while improving the transparency and understanding of those strategies for financial statement users.

In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This update was issued to

45

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

address a narrow-scope financial reporting issue that arose as a consequence of the change in the tax law. On December 22, 2017, the U.S. federal government enacted the Tax Act which, among other significant changes, lowers the federal corporate tax rate from 35% to 21% effective January 1, 2018. This update requires a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the enactment of the Tax Act. ASC 740 requires that the tax effects of changes in tax rates be recognized in income tax expense/ (benefit) attributable to continuing operations in the period in which the law is enacted. As a result, the tax effect of accumulated other comprehensive income does not reflect the appropriate tax rate. The amendments in this ASU eliminate the stranded tax effects associated with the change in the federal corporate income tax rate related to the Tax Act and improve the usefulness of information reported to financial statement users. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those years. Early adoption is permitted for public business entities for reporting periods for which financial statements have not yet been issued. The Company early adopted this ASU on December 31, 2017 and reclassified $1.5 million from accumulated other comprehensive income to retained earnings.

46

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

As of and for the three and six months ended June 30, 2018

Certain statements contained in this Quarterly Report on Form 10-Q that are not historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties. These statements, which are based on certain assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of the words “may,” “will,” “should,” “could,” “would,” “plan,” “potential,” “estimate,” “project,” “believe,” “intend,” “anticipate,” “expect,” “target” and similar expressions. These statements include, among others, statements regarding our strategy, effectiveness of our investment programs, evaluations of future interest rate trends and liquidity, expectations as to growth in assets, deposits and results of operations, receipt of regulatory approval for pending acquisitions, success of acquisitions, future operations, market position, financial position, and prospects, plans and objectives of management. You should not place undue reliance on our forward-looking statements. You should exercise caution in interpreting and relying on forward-looking statements because they are subject to significant risks, uncertainties and other factors which are, in some cases, beyond the Company’s control.

Forward-looking statements are based on the current assumptions and beliefs of management and are only expectations of future results. The Company’s actual results could differ materially from those projected in the forward-looking statements as a result of, among others, factors referenced herein under the section captioned “Risk Factors”; adverse conditions in the capital and debt markets and the impact of such conditions on the Company’s private banking, wealth management and trust, investment management, and wealth advisory activities; changes in interest rates; competitive pressures from other financial institutions; the effects of weakness in general economic conditions on a national basis or in the local markets in which the Company operates; changes in the value of securities and other assets; changes in loan default and charge-off rates; the adequacy of loan loss reserves; reductions in deposit levels necessitating increased borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity, fraud, and natural disasters; changes in government regulation; the risk that goodwill and intangibles recorded in the Company’s financial statements will become impaired; the risk that the Company’s deferred tax assets may not be realized; risks related to the identification and implementation of acquisitions, dispositions and restructurings; and changes in assumptions used in making such forward-looking statements, as well as the other risks and uncertainties detailed in the Company’s Annual Report on Form 10-K and updated in the Company’s Quarterly Reports on Form 10-Q and other filings submitted to the Securities and Exchange Commission. Forward-looking statements speak only as of the date on which they are made. The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.

47

Executive Summary

The Company offers a wide range of private banking and wealth management services to high net worth individuals, families, businesses and select institutions through its four reportable segments: Private Banking, Wealth Management and Trust, Investment Management, and Wealth Advisory. This Executive Summary provides an overview of the most significant aspects of our operating segments and the Company’s operations in the second quarter of 2018. Details of the matters addressed in this summary are provided elsewhere in this document and, in particular, in the sections immediately following.

	As of and for the three months ended June 30,
	2018			2017			$ Change			% Change
	(In thousands, except per share data)
Total revenues	$	89,640		$	95,163		$	(5,523	)	(6	)%
Provision/ (credit) for loan losses	453			(6,114		)	6,567			nm
Total operating expense	64,384			67,821			(3,437		)	(5	)%
Net income from continuing operations	7,404			23,493			(16,089		)	(68	)%
Net income attributable to noncontrolling interests	968			1,150			(182		)	(16	)%
Net income attributable to the Company	6,434			23,406			(16,972		)	(73	)%
Diluted earnings per share:
From continuing operations	$	0.03		$	0.26		$	(0.23	)	(88	)%
From discontinued operations	$	—		$	0.01		$	(0.01	)	(100	)%
Total attributable to common shareholders	$	0.03		$	0.27		$	(0.24	)	(89	)%
ASSETS UNDER MANAGEMENT AND ADVISORY:
Wealth Management and Trust	$	7,789,000		$	7,429,000		$	360,000		5	%
Wealth Advisory	11,566,000			10,744,000			822,000			8	%
Investment Managers (1)	2,031,000			10,901,000			(8,870,000		)	(81	)%
Less: Inter-company Relationship	(7,000		)	(11,000		)	4,000			(36	)%
Total Assets Under Management and Advisory	$	21,379,000		$	29,063,000		$	(7,684,000	)	(26	)%

_____________________

nm =    not meaningful

(1) Includes the assets under management at Anchor of $9.1 billion at June 30, 2017.

Net income attributable to the Company was $6.4 million for the three months ended June 30, 2018 and $23.4 million for the same period in 2017. The Company recognized diluted earnings per share of $0.03 and $0.27 for the three-month periods ended June 30, 2018 and 2017, respectively.

Key items that affected the Company’s results in the second quarter of 2018 compared to the same period of 2017 include:

▪ Income tax expense increased 75% to $17.4 million for the three months ended June 30, 2018, compared to $10.0 million for the same period of 2017. The increase was primarily driven by $12.7 million of income tax expense related to the sale of Anchor in the second quarter of 2018, partially offset by the reduction in the federal corporate tax rate from 35% to 21% as a result of the Tax Cuts and Jobs Act (the “Tax Act”) that was enacted on December 22, 2017. 

▪ Net interest income increased 1%, to $57.5 million for the three months ended June 30, 2018, compared to $57.1 million for the same period of 2017. The increase was primarily driven by higher yields on interest-earning assets, higher loan volumes, and lower deposit volumes, partially offset by higher rates paid on deposits and borrowings, higher borrowing volume, and decreased volume of cash and investments. The net interest margin (“NIM”) on a fully taxable-equivalent (“FTE”) basis was 2.89% for the three months ended June 30, 2018, a decrease of 18 basis points compared to the same period in 2017.

48

▪ Total fees and other income decreased 16% to $32.1 million for the three months ended June 30, 2018, compared to $38.0 million for the same period of 2017. This decrease was primarily driven by a 62% decrease in investment management fees due to the divestiture of Anchor, partially offset by a 6% increase in wealth advisory fees due to higher Assets Under Management and Advisory (“AUM”). Total fees and other income represents 36% of total revenue for the three months ended June 30, 2018, compared to 40% of total revenue for the same period of 2017.

▪ Total operating expenses decreased 5% to $64.4 million for the three months ended June 30, 2018, compared to $67.8 million for the same period of 2017. The decrease was primarily driven by the divestiture of Anchor, which contributed to the 9% decrease in salaries and employee benefits expense, partially offset by a 13% increase in occupancy and equipment expense driven by new leases and the related depreciation of leasehold improvements.

The Company’s Private Banking segment reported net income attributable to the Company of $17.2 million in the second quarter of 2018, compared to net income attributable to the Company of $20.4 million for the same period of 2017. The $3.3 million, or 16%, decrease was primarily driven by the second quarter of 2018 provision for loan losses of $0.5 million compared to the credit to the provision for loan losses of $6.1 million for the same period of 2017, and an increase in total operating expenses of $2.8 million, partially offset by a decrease in income taxes of $5.2 million. The provision expense in the second quarter of 2018 was primarily driven by loan growth, partially offset by a decline in criticized loans and improved loss rates, while the provision credit for the three months ended June 30, 2017 was the net result of net recoveries, decreases in quantitative loss factors, the balance and mix of criticized loans, the mix in the loan portfolio, and loan growth. The increase in total operating expenses for the Private Banking segment was primarily driven by increases in information services, occupancy and equipment, and salaries and employee benefits expenses. The decrease in income taxes was primarily driven by lower pre-tax income and the reduction in the federal corporate tax rate. 

The Company’s Wealth Management and Trust segment reported net income attributable to the Company of $0.2 million in the second quarter of 2018, compared to a net loss attributable to the Company of $0.4 million for the same period of 2017. The $0.6 million change was primarily driven by a decrease in total operating expenses of $0.9 million due to lower salaries and employee benefits expense as total revenues were flat year-over-year. Fee-based revenue in the Wealth Management and Trust segment is determined based on average monthly, beginning-of-quarter, or, for a small number of clients, end-of-quarter AUM balances, depending on the custodian. AUM inflows during the second quarter of 2018 were weighted toward the end of the quarter, while AUM outflows were weighted toward the beginning of the quarter. The timing of AUM flows within the quarter, along with the spread between the average basis points earned on the outgoing AUM versus the incoming AUM, lead to the flat revenue trend as compared to the second quarter of 2017. Wealth Management and Trust AUM increased $0.4 billion, or 5%, to $7.8 billion at June 30, 2018 from $7.4 billion at June 30, 2017. The increase in AUM is due to net inflows of $0.2 billion and positive market action of $0.2 billion for the twelve months ending June 30, 2018.

On April 13, 2018, the Company completed the sale of its ownership interest in Anchor. Anchor’s results remain consolidated in the Company’s results for the portion of the current period that Anchor was still owned and also in prior periods. Results for the remaining period of 2018 after the close of the transaction in April will not include Anchor operations.

The Company’s Investment Management segment reported net income attributable to the Company of $0.7 million in the second quarter of 2018, compared to net income attributable to the Company of $1.3 million for the same period of 2017. The $0.7 million, or 50%, decrease was primarily driven by the impact of the divestiture of Anchor in the second quarter of 2018, which reduced all revenue and expense categories as compared to the same period of 2017. Most fee-based revenue in the investment management segment is determined based on beginning-of-period AUM balances. Investment Management AUM decreased $8.9 billion to $2.0 billion at June 30, 2018 from $10.9 billion at June 30, 2017, primarily driven by the impact of the divestiture of Anchor in the second quarter of 2018, partially offset by positive market action of $0.2 billion and flat net flows for the twelve months ending June 30, 2018.

The Company’s Wealth Advisory segment reported net income attributable to the Company of $2.6 million in the second quarter of 2018, compared to net income attributable to the Company of $1.9 million for the same period of 2017. The $0.7 million, or 35%, increase was primarily driven by a $0.7 million increase in wealth advisory fee income due to higher levels of AUM and a $0.3 million decrease in income tax expense due to the reduction in the federal corporate tax rate, partially offset by a $0.3 million increase in operating expenses due to higher salaries and benefits expense. Fee-based revenue in the Wealth Advisory segment is determined based on either a fixed fee or end-of-quarter AUM balances. Wealth Advisory AUM increased $0.8 billion, or 8%, to $11.6 billion at June 30, 2018 from $10.7 billion at June 30, 2017, primarily due to positive market action of $0.8 billion and net inflows of $0.1 billion for the twelve months ending June 30, 2018.

Critical Accounting Policies

49

Critical accounting policies reflect significant judgments and uncertainties, and could potentially result in materially different results under different assumptions and conditions. The Company believes that its most critical accounting policies upon which its financial condition depends, and which involve the most complex or subjective decisions or assessments are the allowance for loan and lease losses, the valuation of goodwill and intangible assets and analysis for impairment, and tax estimates. These policies are discussed in Part II. Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Policies” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. There have been no changes to these policies through the filing of this Quarterly Report on Form 10-Q.

Results of operations for the three and six months ended June 30, 2018 versus June 30, 2017

Net Income. The Company recorded net income from continuing operations for the three and six months ended June 30, 2018 of $7.4 million and $29.4 million, respectively, compared to $23.5 million and $38.5 million for the same respective periods in 2017. Net income attributable to the Company, which includes income from both continuing and discontinued operations, for the three and six months ended June 30, 2018 was $6.4 million and $29.1 million, respectively, compared to $23.4 million and $39.1 million for the same respective periods in 2017.

The Company recorded net income from discontinued operations for the three and six months ended June 30, 2018 of zero and $1.7 million, respectively, compared to $1.1 million and $2.7 million for the same respective periods in 2017. The Company received the final payment related to a revenue sharing agreement with Westfield Capital Management Company, LLC (“Westfield”) in the first quarter of 2018. The Company will not receive additional income from Westfield now that the final payment has been received.

The Company recognized diluted EPS attributable to common shareholders, which includes both continuing and discontinued operations, for the three and six months ended June 30, 2018 of $0.03 per share and $0.30 per share, respectively, compared to $0.27 per share and $0.44 per share for the same respective periods in 2017. Net income from continuing operations in both 2018 and 2017 was partially offset by charges that reduce income available to common shareholders. See Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 2: Earnings Per Share” for further detail on these charges to income available to common shareholders.

The following discussions are based on the Company’s continuing operations, unless otherwise stated.

The following table presents selected financial highlights:

	Three months ended June 30,						$ Change		% Change		Six months ended June 30,						$ Change			% Change
	2018			2017							2018			2017
	(In thousands)
Net interest income	$	57,545		$	57,145		400		1	%	$	114,928		$	110,787		$	4,141		4	%
Fees and other income	32,095			38,018			(5,923	)	(16	)%	71,838			74,524			(2,686		)	(4	)%
Total revenue	89,640			95,163			(5,523	)	(6	)%	186,766			185,311			1,455			1	%
Provision/ (credit) for loan losses	453			(6,114		)	6,567		nm		(1,342		)	(6,295		)	4,953			(79	)%
Operating expense	64,384			67,821			(3,437	)	(5	)%	135,241			136,601			(1,360		)	(1	)%
Income tax expense	17,399			9,963			7,436		75	%	23,425			16,516			6,909			42	%
Net income from continuing operations	7,404			23,493			(16,089	)	(68	)%	29,442			38,489			(9,047		)	(24	)%
Net income/ (loss) from discontinued operations	(2		)	1,063			(1,065	)	nm		1,696			2,695			(999		)	(37	)%
Less: Net income attributable to noncontrolling interests	968			1,150			(182	)	(16	)%	2,018			2,116			(98		)	(5	)%
Net income attributable to the Company	$	6,434		$	23,406		(16,972	)	(73	)%	$	29,120		$	39,068		$	(9,948	)	(25	)%

_____________________

nm = not meaningful

50

Net interest income. Net interest income represents the difference between interest earned, primarily on loans and investments, and interest paid on funding sources, primarily deposits and borrowings. Interest rate spread is the difference between the average rate earned on total interest-earning assets and the average rate paid on total interest-bearing liabilities. NIM is the amount of net interest income, on a FTE basis, expressed as a percentage of average interest-earning assets. The average rate earned on interest-earning assets is the amount of annualized taxable equivalent interest income expressed as a percentage of average interest-earning assets. The average rate paid on interest-bearing liabilities is equal to annualized interest expense as a percentage of average interest-bearing liabilities. When credit quality declines and loans are placed on nonaccrual status, NIM can decrease because the same assets are earning less income. Loans graded as substandard but still accruing interest income totaled $45.5 million at June 30, 2018 and could be placed on nonaccrual status if their credit quality declines further.

Net interest income for the three months ended June 30, 2018 was $57.5 million, an increase of $0.4 million, or 1%, compared to the same period in 2017. For the six months ended June 30, 2018, net interest income was $114.9 million, an increase of $4.1 million, or 4%, compared to the same period in 2017. The increase for the three and six months is primarily driven by higher yields on interest-earning assets, higher loan volumes, and lower deposit volumes, partially offset by higher rates paid on deposits and borrowings, higher borrowing volume, and decreased volume of cash and investments. The NIM was 2.89% for the three months ended June 30, 2018, a decrease of 18 basis points compared to the same period in 2017. For the six months ended June 30, 2018, the NIM was 2.92%, a decrease of 8 basis points compared to the same period in 2017. Due to the lower federal tax rate in 2018, the FTE adjustment has a lower impact on the interest gross-up for NIM purposes. The estimated impact on NIM due to the lower tax rate in 2018 is 10 basis points.

The following tables present the composition of the Company’s NIM on a FTE basis for the three and six months endedJune 30, 2018 and 2017; however, the discussion following these tables reflects non-FTE data.

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	Average Balance				Interest Income/Expense				Average Yield/Rate
	As of and for the three months ended June 30,
AVERAGE BALANCE SHEET:	2018		2017		2018		2017		2018		2017
AVERAGE ASSETS	(In thousands)
Interest-earning assets:
Cash and investments: (1)
Taxable investment securities	$	326,482	$	363,166	$	1,501	$	1,592	1.84	%	1.75	%
Non-taxable investment securities (2)	297,852		294,836		2,217		2,546		2.98	%	3.45	%
Mortgage-backed securities	570,845		653,201		3,049		3,495		2.14	%	2.14	%
Short-term investments and other	157,878		199,230		1,205		831		3.03	%	1.66	%
Total cash and investments	1,353,057		1,510,433		7,972		8,464		2.35	%	2.24	%
Loans: (3)
Commercial and industrial (2)	974,443		987,144		9,439		9,773		3.83	%	3.92	%
Commercial real estate (2)	2,477,634		2,358,409		27,550		26,433		4.40	%	4.43	%
Construction and land (2)	166,736		119,366		2,040		1,377		4.84	%	4.56	%
Residential	2,775,239		2,489,072		22,590		19,574		3.26	%	3.15	%
Home equity	94,445		109,942		1,041		1,085		4.42	%	3.96	%
Other consumer	179,684		195,384		1,818		1,526		4.06	%	3.13	%
Total loans	6,668,181		6,259,317		64,478		59,768		3.84	%	3.79	%
Total earning assets	8,021,238		7,769,750		72,450		68,232		3.59	%	3.49	%
LESS: Allowance for loan losses	72,998		80,614
Cash and due from banks (non-interest bearing)	45,337		42,166
Other assets	396,744		450,703
TOTAL AVERAGE ASSETS	$	8,390,321	$	8,182,005
AVERAGE LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS, AND SHAREHOLDERS’ EQUITY
Interest-bearing liabilities:
Interest-bearing deposits:
Savings and NOW	$	719,159	$	711,883	$	304	$	187	0.17	%	0.11	%
Money market	3,033,306		3,173,768		5,543		3,244		0.73	%	0.41	%
Certificates of deposit	688,567		665,668		2,518		1,518		1.47	%	0.91	%
Total interest-bearing deposits	4,441,032		4,551,319		8,365		4,949		0.76	%	0.44	%
Junior subordinated debentures	106,363		106,363		1,008		716		3.75	%	2.67	%
FHLB borrowings and other	1,022,636		703,149		4,637		2,499		1.79	%	1.41	%
Total interest-bearing liabilities	5,570,031		5,360,831		14,010		8,164		1.00	%	0.61	%
Non-interest bearing demand deposits	1,908,037		1,899,916
Payables and other liabilities	122,175		106,657
Total average liabilities	7,600,243		7,367,404
Redeemable noncontrolling interests	14,129		21,075
Average shareholders’ equity	775,949		793,526
TOTAL AVERAGE LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS, AND SHAREHOLDERS’ EQUITY	$	8,390,321	$	8,182,005
Net interest income - on a fully taxable equivalent basis (FTE)					$	58,440	$	60,068
LESS: FTE adjustment (2)					895		2,923
Net interest income (GAAP basis)					$	57,545	$	57,145
Interest rate spread									2.59	%	2.88	%
Net interest margin									2.89	%	3.07	%

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	Average Balance				Interest Income/Expense				Average Yield/Rate
	As of and for the six months ended June 30,
AVERAGE BALANCE SHEET:	2018		2017		2018		2017		2018		2017
AVERAGE ASSETS	(In thousands)
Interest-earning assets:
Cash and investments: (1)
Taxable investment securities	$	330,220	$	379,164	$	3,011	$	3,262	1.83	%	1.72	%
Non-taxable investment securities (2)	297,407		294,925		4,407		5,017		2.96	%	3.40	%
Mortgage-backed securities	579,604		662,888		6,227		6,999		2.15	%	2.11	%
Short-term investments and other	158,853		179,901		2,214		1,431		2.78	%	1.10	%
Total cash and investments	1,366,084		1,516,878		15,859		16,709		2.32	%	2.15	%
Loans: (3)
Commercial and industrial (2)	953,940		985,430		18,195		19,076		3.79	%	3.85	%
Commercial real estate (2)	2,459,525		2,341,482		53,891		49,977		4.36	%	4.25	%
Construction and land (2)	168,052		116,679		4,005		2,621		4.74	%	4.47	%
Residential	2,738,980		2,457,100		44,356		38,565		3.24	%	3.14	%
Home equity	95,810		113,801		2,083		2,174		4.39	%	3.85	%
Other consumer	182,623		193,769		3,391		2,946		3.74	%	3.07	%
Total loans	6,598,930		6,208,261		125,921		115,359		3.81	%	3.70	%
Total earning assets	7,965,014		7,725,139		141,780		132,068		3.55	%	3.40	%
LESS: Allowance for loan losses	73,911		79,375
Cash and due from banks (non-interest bearing)	48,725		41,929
Other assets	408,810		426,349
TOTAL AVERAGE ASSETS	$	8,348,638	$	8,114,042
AVERAGE LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS, AND SHAREHOLDERS’ EQUITY
Interest-bearing liabilities:
Interest-bearing deposits:
Savings and NOW	$	718,051	$	682,126	$	519	$	316	0.15	%	0.09	%
Money market	3,086,710		3,193,336		9,857		6,365		0.64	%	0.40	%
Certificates of deposit	672,736		627,993		4,513		2,799		1.35	%	0.90	%
Total interest-bearing deposits	4,477,497		4,503,455		14,889		9,480		0.67	%	0.42	%
Junior subordinated debentures	106,363		106,363		1,854		1,387		3.52	%	2.59	%
FHLB borrowings and other	950,763		714,998		8,240		4,671		1.72	%	1.30	%
Total interest-bearing liabilities	5,534,623		5,324,816		24,983		15,538		0.91	%	0.59	%
Non-interest bearing demand deposits	1,890,184		1,871,924
Payables and other liabilities	126,601		112,157
Total average liabilities	7,551,408		7,308,897
Redeemable noncontrolling interests	17,644		21,208
Average shareholders’ equity	779,586		783,937
TOTAL AVERAGE LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS, AND SHAREHOLDERS’ EQUITY	$	8,348,638	$	8,114,042
Net interest income - on a fully taxable equivalent basis (FTE)					$	116,797	$	116,530
LESS: FTE adjustment (2)					1,869		5,743
Net interest income (GAAP basis)					$	114,928	$	110,787
Interest rate spread									2.64	%	2.81	%
Net interest margin									2.92	%	3.00	%

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____________________

(1) Investments classified as available-for-sale and held-to-maturity are shown in the average balance sheet at amortized cost.

(2) Interest income on non-taxable investments and loans is presented on a FTE basis using statutory rates. The discussion following these tables reflects non-FTE data.

(3) Includes loans held for sale and nonaccrual loans.

Interest and dividend income. Total interest and dividend income for the three months ended June 30, 2018was $71.6 million, an increase of $6.2 million, or 10%, compared to the same period in 2017. Interest and dividend income for the six months ended June 30, 2018 was $139.9 million, an increase of $13.6 million, or 11%, compared to the same period in 2017. The increase for the three and six months was primarily driven by interest earned on loans, specifically residential, commercial real estate, commercial and industrial, and construction and land loans.

The Bank generally has interest income that is either collected or reversed related to nonaccrual loans each quarter. Based on the net amount collected or reversed, the impact on interest income and related yields can be either positive or negative. In addition, the Bank collects prepayment penalties on certain commercial loans that pay off prior to maturity which could also impact interest income and related yields positively. The amount and timing of prepayment penalties varies from quarter to quarter.

Interest income on commercial and industrial loans, on a non-FTE basis, for the three months ended June 30, 2018was $9.2 million, an increase of $0.7 million, or 9% compared to the same period in 2017. This increase was a result of a 35 basis point increase in the average yield on a non-FTE basis, partially offset by a 1% decrease in the average balance. For the six months ended June 30, 2018, commercial and industrial interest income was $17.7 million, an increase of $1.2 million, or 7%, compared to the same period in 2017, as a result of a 28 basis point increase in the average yield on a non-FTE basis, partially offset by a 3% decrease in the average balance. The increase in the average yield for the three and six month periods is the result of market conditions and the fluctuations in the indicies to which the variable rate loans are tied. The decrease in the average balance for the three and six month periods is related to a small number of large paydowns during the previous quarter and increased competition.

Interest income on commercial real estate loans, on a non-FTE basis, for the three months ended June 30, 2018 was $27.4 million, an increase of $1.7 million, or 7%, compared to the same period in 2017, as a result of a six basis point increase in the average yield on a non-FTE basis and a 5% increase in the average balance. For the six months ended June 30, 2018, commercial real estate interest income was $53.5 million, an increase of $5.0 million, or 10%, compared to the same period in 2017, as a result of a 5% increase in the average balance and a two basis point increase in the average yield on a non-FTE basis. The increase in the average balances for the three and six month periods is related to increased demand, particularly in New England and the San Francisco Bay Area. The increase in the average yield for the three and six month periods is primarily driven by increases to the interest rate benchmarks to which the variable rate loans are tied, partially offset by increased competition in the regions in which the Bank operates. Additionally, certain loans have interest rate floors and the rate may not increase with the benchmark rate until the benchmark rate exceeds the floor.

Interest income on construction and land loans, on a non-FTE basis, for the three months ended June 30, 2018 was $2.0 million, an increase of $0.6 million, or 46%, compared to the same period in 2017, as a result of a 21 basis point increase in the average yield on a non-FTE basis and a 40% increase in the average balance. For the six months ended June 30, 2018, construction and land interest income was $3.9 million, an increase of $1.3 million, or 51%, compared to the same period in 2017, as a result of an 11 basis point increase in the average yield on a non-FTE basis and a 44% increase in the average balance. The increase in the average yield for the three and six month periods is primarily driven by increases to the interest rate benchmarks to which the variable rate loans are tied. The increase in the average balance for the three and six month periods is related to cyclical customer demand across all regions.

Interest income on residential mortgage loans for the three months ended June 30, 2018 was $22.6 million, an increase of $3.0 million, or 15%, compared to the same period in 2017, as a result of an 11 basis point increase in the average yield and a 11% increase in the average balance. For the six months ended June 30, 2018, residential mortgage interest income was $44.4 million, an increase of $5.8 million, or 15%, compared to the same period in 2017, as a result of a 10 basis point increase in the average yield and an 11% increase in the average balance. The increase in the average balance for the three and six month periods is related to the organic growth of the residential loan portfolio at the Bank as customers are entering into new residential mortgage loans as rates continue to rise. The increase in the average yield for the three and six month periods is related to higher yields on residential mortgage originations and adjustable rate mortgage (“ARM”) loans repricing at higher rates with recent hikes in the Federal Reserve interest rates.

Interest income on home equity loans for the three months ended June 30, 2018 was $1.0 million, a decrease of 4% compared to the same period in 2017, as a result of a 14% decrease in the average balance, partially offset by a 46 basis point

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increase in the average yield. For the six months ended June 30, 2018, home equity interest income was $2.1 million, a decrease of 4% compared to the same period in 2017, as a result of a 16% decrease in the average balance, partially offset by a 54 basis point increase in the average yield. The decrease in the average balance for the three and six month periods is primarily driven by reduced demand as a result of the recent increases in interest rates. The increase in the average yield for the three and six month period is also the result of increases in benchmark interest rates.

Interest income on other consumer loans for the three months ended June 30, 2018 was $1.8 million, an increase of $0.3 million, or 19%, compared to the same period in 2017, as a result of a 93 basis point increase in the average yield, partially offset by a 8% decrease in the average balance. For the six months ended June 30, 2018, other consumer interest income was $3.4 million, an increase of $0.4 million, or 15%, compared to the same period in 2017, as a result of a 67 basis point increase in the average yield, partially offset by a 6% decrease in the average balance. The increase in the average yield for the three and six month periods is the result of increases in benchmark interest rates. The decrease in the average balance for the three and six month periods is also primarily driven by reduced demand as a result of the recent increases in interest rates.

Investment income, on a non-FTE basis, for the three months ended June 30, 2018 was $7.5 million, a decrease of $0.1 million, or 1%, from the same period in 2017, as a result of a 10% decrease in the average balance, partially offset by a 22 basis point increase in the average yield on a non-FTE basis. For the six months ended June 30, 2018, investment income was $14.9 million, flat compared to the same period in 2017, as a result of a 10% decrease in the average balance, partially offset by an 18 basis point increase in the average yield on a non-FTE basis. The increase in the average yield for the three and six month periods is primarily due to dividends from the Federal Reserve Bank (“FRB”), of which the Bank became a member in the third quarter of 2017, and the Federal Home Loan Bank of Boston (“FHLB”), as well as increases in the federal discount rate. The decrease in the average balance for the three and six month periods is primarily due to timing and volume of deposit and borrowing balances as compared to the level of loans outstanding. As investment securities matured, the Company has utilized the cash proceeds to support loan growth.

Interest expense. Total interest expense for the three months ended June 30, 2018 was $14.0 million, an increase of $5.8 million, or 72%, compared to the same period in 2017. For the six months ended June 30, 2018, total interest expense was $25.0 million, an increase of $9.4 million, or 61%, compared to the same period in 2017.

Interest expense on interest-bearing deposits for the three months ended June 30, 2018 was $8.4 million, an increase of $3.4 million, or 69%, compared to the same period in 2017, as a result of a 32 basis point increase in the average rate paid, partially offset by a 2% decrease in the average balance. For the six months ended June 30, 2018, interest expense on interest-bearing deposits was $14.9 million, an increase of $5.4 million, or 57%, compared to the same period in 2017, as a result of a 25 basis point increase in the average rate paid, partially offset by a 1% decrease in the average balance. The increase for the three and six month periods in the average rate paid on deposits is driven primarily by increases in the rates paid for certificates of deposit and money market demand accounts as benchmark interest rates have increased. The decrease for the three and six month in the average balance for interest-bearing deposits was primarily driven by increased competition for deposit market share.

Interest paid on non-deposit interest-bearing liabilities for the three months ended June 30, 2018 was $5.6 million, an increase of $2.4 million, or 76%, compared to the same period in 2017, as a result of a 38 basis point increase in the average rate paid on FHLB borrowings and other borrowings, a 45% increase in the average balance of FHLB borrowings and other borrowings, and a 108 basis point increase in the average rate paid on junior subordinated debentures. For the six months ended June 30, 2018, interest paid on non-deposit interest-bearing liabilities was $10.1 million, an increase of $4.0 million, or 67%, compared to the same period in 2017, as a result of a 33% increase in the average balance of FHLB borrowings and other borrowings, a 42 basis point increase in the average rate paid on FHLB borrowings and other borrowings, and a 93 basis point increase in the average rate paid on junior subordinated debentures. The increases for the three and six month periods in the average rate paid on non-deposit interest-bearing liabilities is primarily driven by the increases in benchmark interest rates. The increase for the three and six month in the average balance for non-deposit interest-bearing deposits was primarily driven by increased FHLB borrowings used to fund additional loan growth due to decreasing deposits over the same period.

Provision/ (credit) for loan losses. The Company recorded a provision for loan losses of $0.5 million for the three months ended June 30, 2018, compared to a credit to the provision for loan losses of $6.1 million for the same period in 2017. For the six months ended June 30, 2018, the provision/ (credit) for loan losses was a credit of $1.3 million, compared to a credit of $6.3 million for the same period in 2017. The provision in the second quarter of 2018 was primarily driven by loan growth, partially offset by a decline in criticized loans and improved loss rates.

The provision/ (credit) for loan losses is determined as a result of the required level of the allowance for loan losses, estimated by management, which reflects the inherent risk of loss in the loan portfolio as of the balance sheet dates. The Company incorporates both quantitative and qualitative loss factors to determine the appropriate level of the allowance for loan

55

losses. Quantitative loss factors are based on historical net charge-offs by loan portfolio. Qualitative factors are estimated by management and include trends in problem loans, economic and business conditions, strength of management, real estate collateral values, and underwriting standards. For further details, see “Loan Portfolio and Credit Quality” below.

Fees and other income

	Three months ended June 30,				$ Change			% Change		Six months ended June 30,				$ Change			% Change
	2018		2017							2018		2017
	(In thousands)
Investment management fees	$	4,227	$	11,081	$	(6,854	)	(62	)%	$	15,652	$	21,920	$	(6,268	)	(29	)%
Wealth advisory fees	13,693		12,961		732			6	%	27,205		25,784		1,421			6	%
Wealth management and trust fees	11,169		11,161		8			—	%	23,320		21,987		1,333			6	%
Other banking fee income	2,745		1,964		781			40	%	5,018		3,658		1,360			37	%
Gain on sale of loans, net	63		59		4			7	%	137		197		(60		)	(30	)%
Total core fees and income	31,897		37,226		(5,329		)	(14	)%	71,332		73,546		(2,214		)	(3	)%
Total other income	198		792		(594		)	(75	)%	506		978		(472		)	(48	)%
Total fees and other income	$	32,095	$	38,018	$	(5,923	)	(16	)%	$	71,838	$	74,524	$	(2,686	)	(4	)%

Total fees and other income for the three months ended June 30, 2018decreased$5.9 million, or 16%, compared to the same period in 2017. Total fees and other income for the six months ended June 30, 2018decreased$2.7 million, or 4%, compared to the same period in 2017. The decrease in total fees and other income for the three and six month periods is primarily driven by the decrease in investment management fees as a result of the divestiture of Anchor in April 2018, partially offset by increased wealth advisory fees due to higher levels of AUM and increased other banking fee income driven by higher swap fees.

• AUM managed or advised by the Investment Managers was $2.0 billion at June 30, 2018, a decrease of $8.9 billion, compared to 2017. The decrease was primarily driven by the impact of the divestiture of Anchor in the second quarter of 2018, which managed $9.0 billion of AUM as of March 31, 2018, partially offset by positive market action of $0.2 billion and flat net flows for the twelve months ending June 30, 2018.

• AUM managed or advised by the Wealth Advisors was $11.6 billion at June 30, 2018, an increase of $0.8 billion, or 8%, compared to June 30, 2017. The increase in AUM was primarily driven by positive market action of $0.8 billion and net inflows of $0.1 billion for the twelve months ending June 30, 2018.

• AUM managed or advised by Boston Private Wealth was $7.8 billion at June 30, 2018, an increase of $0.4 billion, or 5%, compared to June 30, 2017. The increase is primarily driven by net inflows of $0.2 billion and positive market action of $0.2 billion for the twelve months ending June 30, 2018. AUM inflows during the second quarter of 2018 were weighted toward the end of the quarter, while AUM outflows were weighted toward the beginning of the quarter. The timing of AUM flows within the quarter, along with the spread between the average basis points earned on the outgoing AUM versus the incoming AUM, lead to the flat revenue trend as compared to the second quarter of 2017.

• Other banking fee income for the three and six months ended June 30, 2018increased compared to the same periods in 2017. The increase was due to an increase in swap fee income reflecting higher client demand for loan swap agreements for the three and six months ended June 30, 2018 as well as an increase in Bank Owned Life Insurance (“BOLI”) income for the six months ended June 30, 2018 due to an additional purchase of BOLI in 2017.

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Operating Expense

	Three months ended June 30,				$ Change			% Change		Six months ended June 30,				$ Change			% Change
	2018		2017							2018		2017
	(In thousands)
Salaries and employee benefits	$	39,433	$	43,312	$	(3,879	)	(9	)%	$	86,517	$	88,977	$	(2,460	)	(3	)%
Occupancy and equipment	8,229		7,283		946			13	%	15,977		14,468		1,509			10	%
Professional services	2,872		3,106		(234		)	(8	)%	6,049		6,420		(371		)	(6	)%
Marketing and business development	2,070		1,971		99			5	%	3,663		3,631		32			1	%
Information systems	6,770		5,500		1,270			23	%	12,656		10,879		1,777			16	%
Amortization of intangibles	749		1,426		(677		)	(47	)%	1,499		2,852		(1,353		)	(47	)%
FDIC insurance	708		879		(171		)	(19	)%	1,452		1,645		(193		)	(12	)%
Other	3,553		4,344		(791		)	(18	)%	7,428		7,729		(301		)	(4	)%
Total operating expense	$	64,384	$	67,821	$	(3,437	)	(5	)%	$	135,241	$	136,601	$	(1,360	)	(1	)%

Total operating expense for the three months ended June 30, 2018decreased$3.4 million, or 5%, compared to the same period in 2017, primarily due to the divestiture of Anchor, as well as a decrease in other expense, Federal Deposit Insurance Corporation (“FDIC”) insurance, and salaries and employee benefits expense, partially offset by increases in information systems, occupancy and equipment, and marketing and business development expense. Total operating expense for the six months ended June 30, 2018decreased$1.4 million, or 1%, compared to the same period in 2017, primarily due to the divestiture of Anchor, as well as a decrease in other expense and professional services, partially offset by increases in information systems, occupancy and equipment, and salaries and employee benefits expense.

• Salaries and employee benefits expense, the largest component of operating expense, for the three and six months ended June 30, 2018decreased compared to the same periods in 2017, primarily due to the divestiture of Anchor. The impact of the divestiture of Anchor was partially offset by an increase in salaries and bonuses for the remainder of the Company, excluding Anchor.

• Occupancy and equipment expense for the three and six months ended June 30, 2018increased compared to the same periods in 2017, primarily due to lease renewals and the related depreciation of leasehold improvements.

• Information systems expense for the three and six months ended June 30, 2018increased compared to the same periods in 2017, primarily due to an increase in technology service agreements, telecommunications and telephone expenses.

In 2017, the Bank began working on an initiative to upgrade its information technology. This initiative required the Bank to hire additional employees with expertise in information technology. Recruiters were generally used in the placement of these professionals. The Bank has utilized consultants and temporary employees to assist with the initiative in addition to the new hires. Generally the expenditures in the preliminary project stage were expensed as incurred. Other expenditures related to the application development stage have been capitalized. The capitalized expenditures will be depreciated over the useful life of the asset when the asset is placed in service. The Bank has begun to place certain of these capitalized assets in service in 2018 and anticipates that the remaining capitalized assets will be placed in service in the second half of 2018 through early 2019.

Income Tax Expense. Income tax expense for continuing operations for the six months endedJune 30, 2018 was $23.4 million, which included a $12.7 million expense related to the sale of Anchor. The effective tax rate for continuing operations for the six months ended June 30, 2018 was 44.3%, compared to an effective tax rate of 30.0% for the same period in 2017. The effective tax rate for 2018 was higher than 2017 primarily due to the sale of Anchor, partially offset by the reduction in the federal corporate tax rate from 35% to 21% as a result of the impact of the Tax Act that was enacted on December 22, 2017. See Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 9: Income Taxes” for further detail.

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Financial Condition

Condensed Consolidated Balance Sheets and Discussion

	June 30, 2018		December 31, 2017		Increase/ (decrease)			% Change
	(In thousands)
Assets:
Total cash and investments	$	1,590,588	$	1,425,418	$	165,170		12	%
Loans held for sale	4,622		4,697		(75		)	(2	)%
Total loans	6,767,123		6,505,028		262,095			4	%
Less: Allowance for loan losses	73,464		74,742		(1,278		)	(2	)%
Net loans	6,693,659		6,430,286		263,373			4	%
Goodwill and intangible assets, net	90,182		91,681		(1,499		)	(2	)%
Total other assets	337,152		359,662		(22,510		)	(6	)%
Total assets	$	8,716,203	$	8,311,744	$	404,459		5	%
Liabilities and Equity:
Deposits	$	6,620,179	$	6,510,246	$	109,933		2	%
Total borrowings	1,222,125		862,213		359,912			42	%
Total other liabilities	129,175		135,880		(6,705		)	(5	)%
Total liabilities	7,971,479		7,508,339		463,140			6	%
Redeemable Noncontrolling Interests (“RNCI”)	10,747		17,461		(6,714		)	(38	)%
Total shareholders’ equity	733,977		785,944		(51,967		)	(7	)%
Total liabilities, RNCI and shareholders’ equity	$	8,716,203	$	8,311,744	$	404,459		5	%

Total Assets. Total assets increased $0.4 billion, or 5%, to $8.7 billion at June 30, 2018 from $8.3 billion at December 31, 2017, primarily driven by increases in total cash and investments and total loans.

Cash and Investments. Total cash and investments (consisting of cash and cash equivalents, investment securities, and stock in the FHLB and the FRB) increased $165.2 million, or 12%, from December 31, 2017. Total cash and investments represent 18% of total assets at June 30, 2018 and 17% of total assets at December 31, 2017. The increase on a point in time basis was primarily driven by an increase of $244.0 million in cash related to deposit inflows during the end of the second quarter of 2018 and cash received from the sale of Anchor, partially offset by cash used to redeem the 6.95% Non-Cumulative Perpetual Preferred Stock, Series D (“the Series D preferred stock”). The increase in cash was partially offset by a decrease of $93.4 million in available-for-sale securities. A large portion of the deposit inflows were within the last few days of the quarter, as reflected by the decrease in the average cash and investments balances in the average balance sheet during the quarter.

The majority of the investments held by the Company are held by the Bank. The Bank’s investment policy requires management to maintain a portfolio of securities which will provide liquidity necessary to facilitate funding of loans, to cover deposit fluctuations, and to mitigate the Bank’s overall balance sheet exposure to interest rate risk, while at the same time earning a satisfactory return on the funds invested. The securities in which the Bank may invest are subject to regulation and are generally limited to securities that are considered “investment grade.”

Investment maturities, redemptions, principal payments, and sales of securities, net of purchases, provided $64.0 million of cash proceeds during the six months ended June 30, 2018, compared to $75.8 million in the same period of 2017. Net proceeds are generally used to purchase new investments or fund a portion of loan growth. The timing of sales and reinvestments is based on various factors, including management’s evaluation of interest rate trends, credit risk, and the Company’s liquidity. The Company’s available-for-sale investment portfolio carried a total of $2.0 million of unrealized gains and $34.8 million of unrealized losses at June 30, 2018, compared to $5.1 million of unrealized gains and $17.2 million of unrealized losses at December 31, 2017.

No impairment losses were recognized through earnings related to investment securities during the six months ended June 30, 2018 and 2017. The total amount of unrealized losses was primarily due to changes in interest rates since the securities were purchased and not credit quality.

58

Additionally, at June 30, 2018 and December 31, 2017, the Company held $79.0 million and $74.6 million, respectively, of held-to-maturity securities at amortized cost. All of the held-to-maturity securities were U.S. Treasury securities and mortgage-backed securities guaranteed by the U.S. government, U.S. government agencies, or government-sponsored entities.

See Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 4: Investments” for further details of the Company’s investment securities.

Loans held for sale. Loans held for sale at June 30, 2018 decreased $0.1 million, or 2%, compared to the balance at December 31, 2017. The balance of loans held for sale usually relates to the timing and volume of residential loans originated for sale and the ultimate sale transaction which is typically executed within a short time following the loan origination. From time to time, the Company may also sell loans that have been held in the loan portfolio. The sale of such loans may improve the Bank’s liquidity and capital position or may provide the Bank additional flexibility for more profitable and strategic future lending opportunities.

Goodwill and intangible assets, net. Goodwill and intangible assets, net at June 30, 2018 decreased $1.5 million, or 2%, compared to the balance at December 31, 2017 due to amortization of intangible assets. There was no change to goodwill during the six months ended June 30, 2018.

Goodwill and indefinite-lived intangible assets such as trade names are subject to annual impairment tests, or more frequently, if there is indication of impairment, based on guidance in ASC 350, Intangibles-Goodwill and Other. Long-lived intangible assets such as advisory contracts are tested for recoverability whenever events or changes in circumstances indicate that the carrying amount of the asset or asset group may not be recoverable in accordance with ASC 360, Property, Plant, and Equipment (“ASC 360”).

Management performed its annual goodwill and indefinite-lived intangible asset impairment testing during the fourth quarter of 2017 for applicable reporting units. The estimated fair value of BOS, KLS, and Boston Private Wealth each exceeded their carrying value in 2017. 

Total other assets. Total other assets, as presented in the table above, consists of the following line items from the consolidated balance sheet: other real estate owned (“OREO”), if any; premises and equipment; fees receivable; accrued interest receivable; deferred income taxes, net; and other assets, including assets held for sale, if any. Total other assets at June 30, 2018 decreased $22.5 million, or 6%, compared to the balance at December 31, 2017. These changes resulted from the following factors:

• Other assets, which consist primarily of BOLI, investment in partnerships, prepaid expenses, the fair value of interest rate derivatives, other receivables, and assets held for sale, if any, decreased $29.3 million, or 11%, to $230.2 million at June 30, 2018 from $259.5 million at December 31, 2017. The decrease was primarily due to the divestiture of Anchor in the second quarter of 2018 out of assets held for sale which was partially offset by the $15.4 million receivable for future revenue share with Anchor as part of the divestiture agreement.

• Deferred income taxes, net, decreased $2.7 million, or 9%, to $26.3 million at June 30, 2018 from $29.0 million at December 31, 2017. The decrease was primarily driven by deferred income tax expense, partially offset by the current year tax effect of other comprehensive income/ (loss). At June 30, 2018, no valuation allowance on the net deferred tax asset was required due primarily to the expectation of future taxable income. The Company’s use of these deferred tax benefits may depend on a number of factors including future changes in laws or regulations relating to tax rates, tax credits, tax deductions, and net operating losses.

• Premises and equipment increased $8.8 million, or 23%, to $46.4 million at June 30, 2018 from $37.6 million at December 31, 2017. In 2017, the Bank began working on an initiative to upgrade its information technology. The increase was primarily due to expenditures related to this initiative. Generally the expenditures in the preliminary project stage were expensed as incurred. Other expenditures related to the application development stage have been capitalized. The capitalized expenditures will be depreciated over the useful life of the asset when the asset is placed in service. The capitalized assets will be placed in service beginning in early 2018 through 2019.

Deposits. Deposits at June 30, 2018 increased $109.9 million, or 2%, compared to the balance at December 31, 2017, primarily due to significant deposit inflows during the end of the second quarter of 2018. Although deposits increased on a point in time basis due to deposit inflows near the end of the second quarter of 2018, average deposits for the three months ended June 30, 2018 decreased 2% from the same period in 2017 and average deposits for the six months ended June 30, 2018 decreased 1% from the same period in 2017 as shown in the average balance sheet. For further details, see “Results of Operations” above.

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Deposits are the principal source of the Bank’s funds for use in lending, investments, and liquidity. Deposit levels can fluctuate from quarter to quarter as a result of large short-term transactions by commercial clients. Seasonality can also affect the deposit balances.

As a general matter, deposits are a cheaper source of funds than borrowings, because interest rates paid for deposits are typically less than interest rates charged for borrowings. If, as a result of general economic conditions, market interest rates, competitive pressures, or otherwise, the amount of deposits at the Bank decreases relative to its overall banking operations, the Bank may be limited in its ability to grow its loan portfolio or may have to rely more heavily on higher cost borrowings as a source of funds in the future.

The following table presents the composition of the Company’s deposits at June 30, 2018 and December 31, 2017:

	June 30, 2018				December 31, 2017
	Balance		as a % of total		Balance		as a % of total
	(In thousands)
Demand deposits (noninterest-bearing)	$	2,089,373	32	%	$	2,025,690	31	%
NOW (1)	635,841		10	%	645,361		10	%
Savings	73,675		1	%	70,935		1	%
Money market (1)	3,128,211		47	%	3,121,811		48	%
Certificates of deposit under $100,000 (1)	255,976		4	%	250,070		4	%
Certificates of deposit $100,000 or more to less than $250,000	84,344		1	%	82,665		1	%
Certificates of deposit $250,000 or more	352,759		5	%	313,714		5	%
Total deposits	$	6,620,179	100	%	$	6,510,246	100	%

_____________________

(1) Includes brokered deposits of $706.7 million and $780.2 million at June 30, 2018 and December 31, 2017, respectively.

Total borrowings. Total borrowings (consisting of securities sold under agreements to repurchase, federal funds purchased (if any), FHLB borrowings, and junior subordinated debentures) at June 30, 2018 increased $359.9 million, or 42%, compared to the balance at December 31, 2017.

• FHLB borrowings increased $363.3 million, or 52%, to $1.1 billion at June 30, 2018 from $693.7 million at December 31, 2017. The increase was primarily due to asset liability management considerations in order to fund additional loan growth. FHLB borrowings are generally used to provide additional funding for loan growth when it is in excess of deposit growth and to manage interest rate risk, but can also be used as an additional source of liquidity for the Bank.

• From time to time, the Company purchases federal funds from the FHLB and other banking institutions to supplement its liquidity position. At June 30, 2018, the Company had no federal funds purchased outstanding. The Company had $30.0 million in federal funds purchased outstanding at December 31, 2017.

• Repurchase agreements increased $26.7 million to $58.8 million at June 30, 2018 from $32.2 million at December 31, 2017. Repurchase agreements are generally linked to commercial demand deposit accounts with an overnight sweep feature.

Total other liabilities. Total other liabilities, which consist primarily of accrued interest, accrued bonus, interest rate derivatives, and other accrued expenses, at June 30, 2018 decreased $6.7 million, or 5%, compared to the balance at December 31, 2017. The decrease was primarily driven by the payment in the first quarter of 2018 of accrued variable compensation, bonuses and employee benefits that had been accrued for at December 31, 2017, partially offset by an increase in accrued interest. Total other liabilities at December 31, 2017 also included liabilities held for sale related to Anchor, which were removed when Anchor was sold in April 2018.

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Loan Portfolio and Credit Quality

Loans. Total portfolio loans increased $262.1 million, or 4%, to $6.8 billion, or 78% of total assets, at June 30, 2018, from $6.5 billion, or 78% of total assets, at December 31, 2017. The following table presents a summary of the loan portfolio based on the portfolio segment and changes in balances as of the dates indicated:

	June 30, 2018		December 31, 2017		$ Change			% Change
	(In thousands)
Commercial and industrial	$	583,193	$	520,992	$	62,201		12	%
Commercial tax-exempt	438,882		418,698		20,184			5	%
Total commercial and industrial	1,022,075		939,690		82,385			9	%
Commercial real estate	2,504,521		2,440,220		64,301			3	%
Construction and land	172,024		164,990		7,034			4	%
Residential	2,808,206		2,682,533		125,673			5	%
Home equity	91,801		99,958		(8,157		)	(8	)%
Consumer and other	168,496		177,637		(9,141		)	(5	)%
Total loans	$	6,767,123	$	6,505,028	$	262,095		4	%

The ability to grow the loan portfolio is partially related to the Bank’s ability to increase deposit levels. Deposits are generally a cheaper source of funds than borrowings, because interest rates paid for deposits are typically less than interest rates charged for borrowings. If, as a result of general economic conditions, market interest rates, competitive pressures, or otherwise, the amount of deposits at the Bank decreases relative to its overall banking operations, the Bank may be limited in its ability to grow its loan portfolio or may have to rely more heavily on higher cost borrowings as a source of funds in the future. The Bank’s use of wholesale funding is limited as a result of internal policies such as the loans to deposits ratio.

The Bank specializes in lending to individuals, real estate investors, and middle market businesses, including corporations, partnerships, associations and nonprofit organizations. Loans made by the Bank to individuals may include residential mortgage loans and mortgage loans on investment or vacation properties, unsecured and secured personal lines of credit, home equity loans, and overdraft protection. Loans made by the Bank to businesses include commercial and mortgage loans, revolving lines of credit, working capital loans, equipment financing, community lending programs, and construction and land loans. The types and sizes of loans the Bank originates are limited by regulatory requirements. The Bank’s loans are affected by the economic and real estate markets in which they are located. Generally, commercial real estate, construction, and land loans are affected more than residential loans in an economic downturn.

The Bank’s commercial real estate loan portfolio, the largest portfolio segment after residential, includes loans secured by the following types of collateral as of the dates indicated:

	June 30, 2018		December 31, 2017
	(In thousands)
Multifamily and residential investment	$	738,157	$	729,792
Retail	638,496		634,843
Office and medical	551,514		543,894
Manufacturing, industrial, and warehouse	203,738		197,950
Hospitality	192,665		148,354
Other	179,951		185,387
Commercial real estate	$	2,504,521	$	2,440,220

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Geographic concentration. The following tables present the Company’s outstanding loan balance concentrations at the dates indicated based on the location of the regional offices to which they are attributed.

	As of June 30, 2018
	New England				San Francisco Bay Area				Southern California				Total
	Amount		Percent		Amount		Percent		Amount		Percent		Amount		Percent
	(In thousands)
Commercial and industrial	$	481,081	7	%	$	35,220	1	%	$	66,892	1	%	$	583,193	9	%
Commercial tax-exempt	332,572		5	%	94,959		1	%	11,351		—	%	438,882		6	%
Commercial real estate	1,069,942		16	%	739,769		11	%	694,810		10	%	2,504,521		37	%
Construction and land	88,068		1	%	37,783		1	%	46,173		1	%	172,024		3	%
Residential	1,643,039		24	%	533,394		8	%	631,773		10	%	2,808,206		42	%
Home equity	61,125		1	%	17,366		—	%	13,310		—	%	91,801		1	%
Consumer and other	145,726		2	%	14,659		—	%	8,111		—	%	168,496		2	%
Total loans (1)	$	3,821,553	56	%	$	1,473,150	22	%	$	1,472,420	22	%	$	6,767,123	100	%

	As of December 31, 2017
	New England				San Francisco Bay Area				Southern California				Total
	Amount		Percent		Amount		Percent		Amount		Percent		Amount		Percent
	(In thousands)
Commercial and industrial	$	438,322	7	%	$	23,311	—	%	$	59,359	1	%	$	520,992	8	%
Commercial tax-exempt	305,792		5	%	101,340		1	%	11,566		—	%	418,698		6	%
Commercial real estate	1,002,092		15	%	725,454		11	%	712,674		11	%	2,440,220		37	%
Construction and land	86,874		1	%	27,891		1	%	50,225		1	%	164,990		3	%
Residential	1,598,072		24	%	512,189		8	%	572,272		9	%	2,682,533		41	%
Home equity	67,435		1	%	22,462		1	%	10,061		—	%	99,958		2	%
Consumer and other	149,022		3	%	14,707		—	%	13,908		—	%	177,637		3	%
Total loans (1)	$	3,647,609	56	%	$	1,427,354	22	%	$	1,430,065	22	%	$	6,505,028	100	%

________________________

(1) Regional percentage totals may not reconcile due to rounding.

Allowance for loan losses. The allowance for loan losses is reported as a reduction of outstanding loan balances and totaled $73.5 million and $74.7 million as of June 30, 2018 and December 31, 2017, respectively.

The allowance for loan losses decreased $1.2 million to $73.5 million, or 1.09% of total loans, as of June 30, 2018 from $74.7 million, or 1.15% of total loans, as of December 31, 2017. The decrease in the overall allowance for loan losses was due to a decline in criticized loans and a decline in loss factors, partially offset by loan growth and the mix in the loan portfolio. The provision for loan losses in the second quarter of 2018 was primarily driven by loan growth, partially offset by a decline in criticized loans and improved loss rates. See Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 7: Allowance for Loan Losses” for an analysis of the Company’s allowance for loan losses.

An analysis of the risk in the loan portfolio as well as management judgment is used to determine the estimated appropriate amount of the allowance for loan losses. The Company’s allowance for loan losses is comprised of three primary components (general reserves, allocated reserves on non-impaired special mention and substandard loans, and allocated reserves on impaired loans). See Part II. Item 8. “Notes to Unaudited Consolidated Financial Statements - Note 6: Allowance for Loan Losses” and the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 for further information.

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The following table presents a summary of loans charged-off, net of recoveries, by geography for the periods indicated. The geography assigned to the data is based on the location of the regional offices to which the loans are attributed.

	Three months ended June 30,						Six months ended June 30,
	2018			2017			2018			2017
	(In thousands)
Net loans (charged-off)/ recovered:
New England	$	(73	)	$	667		$	(358	)	$	746
San Francisco Bay Area	91			2,856			158			2,891
Southern California	95			(431		)	264			(410		)
Total net loans (charged-off)/ recovered	$	113		$	3,092		$	64		$	3,227

There were $0.1 million in net recoveries recorded in the second quarter of 2018, compared to $3.1 million of net recoveries for the same period of 2017.

The Company believes that commercial loans represent the greatest risk of loss due to the size and nature of these loans and the related collateral, if applicable. Local economic and business conditions in the markets where our offices are located have a significant impact on our commercial loan customers and their ability to service their loans.

Nonperforming assets. The Company’s nonperforming assets include nonaccrual loans and OREO, if any. OREO, if any, consists of real estate acquired through foreclosure proceedings and real estate acquired through acceptance of deeds in lieu of foreclosure. As of June 30, 2018, nonperforming assets totaled $15.8 million, or 0.18% of total assets, an increase of $1.5 million, or 10%, compared to $14.3 million, or 0.17% of total assets, as of December 31, 2017.

The Bank’s policy is to discontinue the accrual of interest on a loan when the collectability of principal or interest in accordance with the contractual terms of the loan agreement is in doubt. Despite a loan having a current payment status, if the Bank has reason to believe it may not collect all principal and interest on the loan in accordance with the related contractual terms, the Bank will generally discontinue the accrual of interest income and will apply any future interest payments received to principal. Of the $15.7 million of loans on nonaccrual status as of June 30, 2018, $3.0 million, or 19%, had a current payment status, $1.1 million, or 7%, were 30-89 days past due, and $11.6 million, or 74%, were 90 days or more past due. Of the $14.3 million of loans on nonaccrual status as of December 31, 2017, $1.3 million, or 9%, had a current payment status, $3.4 million, or 24%, were 30-89 days past due, and $9.6 million, or 67%, were 90 days or more past due.

The Bank continues to evaluate the underlying collateral of each nonperforming loan and pursue the collection of interest and principal. Where appropriate, the Bank obtains updated appraisals on collateral. Reductions in fair values of the collateral for nonaccrual loans, if they are collateral dependent, could result in additional future provision for loan losses depending on the timing and severity of the decline. See Part I. Item 1. “Financial Statements and Supplementary Data - Note 6: Loans Portfolio and Credit Quality” for further information on nonperforming loans.

The Bank’s policy for returning a loan to accrual status requires the loan to be brought current and for the client to show a history of making timely payments (generally six consecutive months). For nonaccruing troubled debt restructured loans (“TDRs”), a return to accrual status generally requires timely payments for a period of six months in accordance with restructured terms, along with meeting other criteria.

Delinquencies. The past due status of a loan is determined in accordance with its contractual repayment terms. All loan types are reported past due when one scheduled payment is due and unpaid for 30 days or more. Loans 30-89 days past due decreased $20.1 million, or 80%, to $5.0 million as of June 30, 2018 from $25.0 million as of December 31, 2017, with the decrease primarily due to the number of days in June as compared to the number of days in December. Loan delinquencies can be attributed to many factors, such as continuing weakness in, or deteriorating, economic conditions in the region in which the collateral is located, the loss of a tenant or lower lease rates for commercial borrowers, or the loss of income for consumers and the resulting liquidity impacts on the borrowers. Further deterioration in the credit condition of these delinquent loans could lead to the loans going to nonaccrual status and/or being downgraded. Downgrades would generally result in additional provision for loan losses. Past due loans may be included with accruing substandard loans.

In certain instances, although very infrequently, loans that have become 90 days or more past due may remain on accrual status if the value of the collateral securing the loan is sufficient to cover principal and interest and the loan is in the process of collection. There were no loans 90 days or more past due, but still accruing, as of June 30, 2018 and December 31, 2017.

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Impaired Loans. When management determines that it is probable that the Bank will not collect all principal and interest on a loan in accordance with the original loan terms, the loan is considered impaired. Certain impaired loans may continue to accrue interest based on factors such as the restructuring terms, if any, the historical payment performance, the value of collateral, and the financial condition of the borrower. Impaired commercial loans and impaired construction loans are typically, in accordance with ASC 310, individually evaluated for impairment. Large groups of smaller-balance homogeneous loans may be collectively evaluated for impairment. Such groups of loans may include, but are not limited to, residential loans, home equity loans, and consumer loans. However, if the terms of any of such loans are modified in a troubled debt restructuring, then such loans would be individually evaluated for impairment in the allowance for loan and lease losses.

Loans that are individually evaluated for impairment require an analysis to determine the amount of impairment, if any. For collateral dependent loans, impairment would be indicated as a result of the carrying value of the loan exceeding the estimated collateral value, less costs to sell, or, for loans not considered to be collateral dependent, the net present value of the projected cash flow, discounted at the loan’s contractual effective interest rate. Generally, when a collateral dependent loan becomes impaired, an updated appraisal of the collateral, if appropriate, is obtained. If the impaired loan has not been upgraded to a performing status within a reasonable amount of time, the Bank will continue to obtain updated appraisals, as deemed necessary, especially during periods of declining property values. Normally, shortfalls in the analysis of collateral dependent loans would result in the impairment amount being charged-off to the allowance for loan losses. Shortfalls on cash flow dependent loans may be carried as specific allocations to the general reserve unless a known loss is determined to have occurred, in which case such known loss is charged-off. Based on the impairment analysis, the provision could be higher or lower than the amount of provision associated with a loan prior to its classification as impaired. See Part II. Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Critical Accounting Policies” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 for detail on the Company’s treatment of impaired loans in the allowance for loan losses.

Impaired loans individually evaluated for impairment in the allowance for loan losses totaled $23.7 million as of June 30, 2018, an increase of $1.1 million, or 5%, compared to $22.6 million as of December 31, 2017. As of June 30, 2018, $8.3 million of the individually evaluated impaired loans had $1.0 million in specific reserve allocations. The remaining $15.4 million of individually evaluated impaired loans did not have specific reserve allocations due to the adequacy of collateral, prior charge-offs taken, interest collected and applied to principal, or a combination of these items. As of December 31, 2017, $8.1 million of individually evaluated impaired loans had $0.7 million in specific reserve allocations, and the remaining $14.5 million of individually evaluated impaired loans did not have specific reserve allocations.

The Bank may, under certain circumstances, restructure loans as a concession to borrowers who are experiencing financial difficulty. Such loans are classified as TDRs and are included in impaired loans. TDRs typically result from the Bank’s loss mitigation activities which, among other things, could include rate reductions, payment extensions, and/or principal forgiveness. As of June 30, 2018 and December 31, 2017, TDRs totaled $12.9 million and $13.6 million, respectively. As of June 30, 2018, $10.7 million of the $12.9 million in TDRs were on accrual status. As of December 31, 2017, $11.1 million of the $13.6 million in TDRs were on accrual status.

Potential Problem Loans. Loans that evidence weakness or potential weakness related to repayment history, the borrower’s financial condition, or other factors are reviewed by the Bank’s management to determine if the loan should be adversely classified. Delinquent loans may or may not be adversely classified depending upon management’s judgment with respect to each individual loan. The Bank classifies certain loans as “substandard,” “doubtful,” or “loss” based on criteria consistent with guidelines provided by banking regulators. Potential problem loans consist of accruing classified loans where known information about possible credit problems of the related borrowers causes management to have doubts as to the ability of such borrowers to comply with the present loan repayment terms and which may result in classification of such loans as nonperforming at some time in the future. Management cannot predict the extent to which economic conditions may worsen or other factors which may impact borrowers and the potential problem loans. Triggering events for loan downgrades include updated appraisal information, inability of borrowers to cover debt service payments, loss of tenants or notification by the tenant of non-renewal of lease, inability of borrowers to sell completed construction projects, and the inability of borrowers to sell properties. Accordingly, there can be no assurance that other loans will not become 90 days or more past due, be placed on nonaccrual, be restructured, or require increased allowance coverage and provision for loan losses.

64

As of June 30, 2018, the Bank has identified $45.5 million in potential problem loans, a decrease of $7.9 million, or 15%, compared to $53.4 million as of December 31, 2017. Numerous factors impact the level of potential problem loans including economic conditions and real estate values. These factors affect the borrower’s liquidity and, in some cases, the borrower’s ability to comply with loan covenants such as debt service coverage. For instance, when there is a loss of a major tenant in a commercial real estate building, the appraised value of the building generally declines. Loans may be downgraded when this occurs as a result of the additional risk to the borrower in obtaining a new tenant in a timely manner and negotiating a lease with similar or better terms than the previous tenant. In many cases, these loans are still current and paying as agreed, although future performance may be impacted.

The following table presents a rollforward of nonaccrual loans for the three and six months ended June 30, 2018 and 2017:

	As of and for the three months ended June 30,						As of and for the six months ended June 30,
	2018			2017			2018			2017
	(In thousands)
Nonaccrual loans, beginning of period	$	16,380		$	20,945		$	14,295		$	17,315
Transfers in to nonaccrual status	680			2,536			4,918			7,716
Transfers out to OREO	(108		)	—			(108		)	—
Transfers out to accrual status	(905		)	(970		)	(1,792		)	(1,540		)
Charge-offs	(140		)	(458		)	(514		)	(458		)
Paid off/ paid down	(256		)	(5,877		)	(1,148		)	(6,857		)
Nonaccrual loans, end of period	$	15,651		$	16,176		$	15,651		$	16,176

The following table presents a summary of credit quality by geography, based on the location of the regional offices:

	June 30, 2018		December 31, 2017
	(In thousands)
Nonaccrual loans:
New England	$	7,282	$	6,061
San Francisco Bay Area	1,319		1,473
Southern California	7,050		6,761
Total nonaccrual loans	$	15,651	$	14,295
Loans 30-89 days past due and accruing:
New England	$	4,653	$	19,725
San Francisco Bay Area	—		1,911
Southern California	324		3,412
Total loans 30-89 days past due	$	4,977	$	25,048
Accruing classified loans:
New England	$	11,493	$	10,911
San Francisco Bay Area	12,766		11,615
Southern California	21,194		30,826
Total accruing classified loans	$	45,453	$	53,352

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The following table presents a summary of credit quality by loan type. The loan type assigned to the credit quality data is based on the purpose of the loan.

	June 30, 2018		December 31, 2017
	(In thousands)
Nonaccrual loans:
Commercial and industrial	$	1,412	$	748
Commercial tax-exempt	—		—
Commercial real estate	1,838		1,985
Construction and land	—		110
Residential	9,610		8,470
Home equity	2,789		2,840
Consumer and other	2		142
Total nonaccrual loans	$	15,651	$	14,295
Loans 30-89 days past due and accruing:
Commercial and industrial	$	521	$	11,752
Commercial tax-exempt	—		—
Commercial real estate	—		4,043
Construction and land	—		—
Residential	3,641		8,874
Home equity	812		355
Consumer and other	3		24
Total loans 30-89 days past due	$	4,977	$	25,048
Accruing classified loans:
Commercial and industrial	$	7,602	$	10,951
Commercial tax-exempt	—		—
Commercial real estate	29,259		34,455
Construction and land	7,264		6,596
Residential	1,326		1,349
Home equity	—		—
Consumer and other	2		1
Total accruing classified loans	$	45,453	$	53,352

Liquidity

Liquidity is defined as the Company’s ability to generate adequate cash to meet its needs for day-to-day operations and material long and short-term commitments. Liquidity risk is the risk of potential loss if the Company were unable to meet its funding requirements at a reasonable cost. The Company manages its liquidity based on demand, commitments, specific events and uncertainties to meet current and future financial obligations of a short-term nature. The Company’s objective in managing liquidity is to respond to the needs of depositors and borrowers as well as earnings enhancement opportunities in a changing marketplace.

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The following table presents certain liquidity measurements as of the dates indicated:

	June 30, 2018			December 31, 2017			$ Change			% Change
	(In thousands)
Cash and cash equivalents	$	364,539		$	120,541		$	243,998		nm
Investment securities available-for-sale	1,076,967			1,170,328			(93,361		)	(8	)%
LESS: Securities pledged against current borrowings and derivatives	(65,724		)	(38,779		)	(26,945		)	69	%
Subtotal	$	1,375,782		$	1,252,090		$	123,692		10	%
As a percent of assets	16		%	15		%
Access to additional FHLB borrowings	858,062			1,228,008			(369,946		)	(30	)%
Subtotal	$	2,233,844		$	2,480,098		$	(246,254	)	(10	)%
As a percent of assets	26		%	30		%
As a percent of deposits	34		%	38		%

_____________________

nm = not meaningful

At June 30, 2018, the Company’s cash and cash equivalents amounted to $364.5 million. The Holding Company’s cash and cash equivalents amounted to $54.5 million at June 30, 2018. Management believes that the Holding Company and its affiliates, including the Bank, have adequate liquidity to meet their commitments for the foreseeable future.

Management is responsible for establishing and monitoring liquidity targets as well as strategies to meet these targets. At June 30, 2018, consolidated cash and cash equivalents and investment securities available-for-sale, less securities pledged against current borrowings and derivatives, amounted to $1.4 billion, or 16% of total assets, compared to $1.3 billion, or 15% of total assets, at December 31, 2017. Future loan growth may depend upon the Company’s ability to grow its core deposit levels. In addition, the Company has access to available borrowings through the FHLB totaling $858.1 million at June 30, 2018, which decreased from $1.2 billion at December 31, 2017, as the Company increased its usage of FHLB borrowings in 2018. Combined, this liquidity totals $2.2 billion, or 26% of assets and 34% of deposits, as of June 30, 2018, compared to $2.5 billion, or 30% of assets and 38% of deposits, at December 31, 2017.

The Bank has various internal policies and guidelines regarding liquidity, both on- and off-balance sheet, loans to assets ratio, and limits on the use of wholesale funds. These policies and/or guidelines require certain minimum or maximum balances or ratios be maintained at all times. In light of the provisions in the Bank’s internal liquidity policies and guidelines, the Bank will carefully manage the amount and timing of future loan growth along with its relevant liquidity policies and balance sheet guidelines. As a general matter, deposits are a cheaper source of funds than borrowings, because interest rates paid for deposits are typically less than interest rates charged for borrowings. If, as a result of general economic conditions, market interest rates, competitive pressures, or otherwise, the amount of deposits at the Bank decreases relative to its overall banking operations, the Bank may be limited in its ability to grow its loan portfolio or may have to rely more heavily on higher cost borrowings as a source of funds in the future.

Holding Company Liquidity. The Company and some of the Company’s majority-owned affiliates hold put and call options that would require the Company to purchase (and the noncontrolling interest owners of the majority-owned affiliates to sell) the remaining noncontrolling interests in these companies at either a contractually predetermined fair value, a multiple of EBITDA, or fair value, as determined by the respective agreements. At June 30, 2018, the estimated maximum redemption value for these affiliates related to outstanding put options was $10.7 million, all of which could be redeemed within the next 12 months, under certain circumstances, and is classified on the consolidated balance sheets as redeemable noncontrolling interests. These put and call options are discussed in detail in Part II. Item 8. “Financial Statements and Supplementary Data - Note 14: Noncontrolling Interests” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.

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The Holding Company’s primary sources of funds are dividends from its affiliates and access to the capital and debt markets. The Holding Company recognized $1.7 million in net income from discontinued operations during the six months ended June 30, 2018 as the final payment related to a revenue sharing agreement with Westfield. The Company will not receive additional income from Westfield now that the final payment has been received. Although not a primary source of funds, the Holding Company has generated liquidity from the sale of affiliates in the past and also generated additional funds at the time of the Anchor sale closing in April 2018. Pursuant to the Anchor sale agreement, the Holding Company will be entitled to future revenue sharing payments that have a net present value of $15.4 million in addition to the $34.2 million of cash received at the time of the sale closing in April 2018. The company expects to receive $1.2 million over the remaining six months of 2018 related to the revenue sharing agreement with Anchor, a portion of which will be recorded as miscellaneous income. The Company also incurred a tax liability of $12.7 million attributable to the transaction, which is primarily the result of a book-to-tax basis difference associated with nondeductible goodwill.

Dividends from the Bank are limited by various regulatory requirements relating to capital adequacy and retained earnings. See Part II. Item 5. “Market for Registrant’s Common Equity, Related Stockholders Matters, and Issuers Purchases of Equity Securities” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 for further details.

The Bank pays dividends to the Holding Company, subject to the approval of the Bank’s Board of Directors, depending on its profitability and asset growth. If regulatory agencies were to require banks to increase their capital ratios, or impose other restrictions, it may limit the ability of the Bank to pay dividends to the Holding Company and/or limit the amount that the Bank could grow.

Although the Bank’s capital currently exceeds regulatory requirements for capital, the Holding Company could downstream additional capital to increase the rate that the Bank could grow. Depending upon the amount of capital downstreamed by the Holding Company, the approval of the Holding Company’s Board of Directors may be required prior to the payment, if any.

The Company is required to pay interest quarterly on its junior subordinated debentures. The estimated cash outlay for the remaining six months of 2018 for the interest payments is approximately $2.2 million based on the debt outstanding at June 30, 2018 and estimated London Interbank Offered Rate (“LIBOR”). LIBOR is expected to be phased out as an index by the end of 2021. The Company is currently evaluating alternatives to the LIBOR index.

The Company presently plans to pay cash dividends on its common stock on a quarterly basis dependent upon a number of factors such as profitability, Holding Company liquidity, and the Company’s capital levels. However, the ultimate declaration of dividends by the Board of Directors of the Company will depend on consideration of, among other things, recent financial trends and internal forecasts, regulatory limitations, alternative uses of capital deployment, general economic conditions, and regulatory changes to capital requirements. Additionally, the Company is required to inform and consult with the Federal Reserve in advance of declaring a dividend that exceeds earnings for the period for which the dividend is being paid. Based on the current quarterly dividend rate of $0.12 per share, as announced by the Company on January 17, 2018, and estimated shares outstanding, the Company estimates that the amount to be paid out for dividends to common shareholders in the remaining six months of 2018 will be approximately $20.4 million. The estimated dividend payments in 2018 could increase or decrease if the Company’s Board of Directors votes to increase or decrease, respectively, the current dividend rate, and/or the number of shares outstanding changes significantly.

The Series D preferred stock was callable by the Company beginning in June 2018. On June 15, 2018, the Company redeemed all $50 million of the outstanding Series D preferred stock. There will therefore be no additional outlay for cash dividends on the Series D preferred stock for the remaining six months of 2018.

In the first quarter of 2018, the Company’s Board of Directors approved, and the Company received regulatory non-objection for, a share repurchase program of up to $20.0 million of the Company’s outstanding common shares. Under the program, shares may be repurchased from time to time in the open market for a two-year period. As of June 30, 2018, the full $20.0 million remains available for repurchase. The amount and timing of repurchases will be based on the Company’s continuous evaluation of the program.

Bank Liquidity. The Bank has established various borrowing arrangements to provide additional sources of liquidity and funding. Management believes that the Bank currently has adequate liquidity available to respond to current demands. The Bank is a member of the FHLB of Boston, and as such, has access to short- and long-term borrowings from that institution. The FHLB can change the advance amounts that banks can utilize based on a bank’s current financial condition as obtained from publicly available data such as FDIC Call Reports. Decreases in the amount of FHLB borrowings available to the Bank would lower its liquidity and possibly limit the Bank’s ability to grow in the short-term. Management believes that the Bank has adequate liquidity to meet its commitments for the foreseeable future.

68

In addition to the above liquidity, the Bank has access to the FRB discount window facility, which can provide short-term liquidity as “lender of last resort,” brokered deposits, and federal funds lines. The use of non-core funding sources, including brokered deposits and borrowings, by the Bank may be limited by regulatory agencies. Generally, the regulatory agencies prefer that banks rely on core-funding sources for liquidity.

From time to time, the Bank purchases federal funds from the FHLB and other banking institutions to supplement its liquidity position. At June 30, 2018, the Bank had unused federal fund lines of credit totaling $515.0 million, compared to $435.0 million at December 31, 2017, with correspondent institutions to provide it with immediate access to overnight borrowings. At June 30, 2018, the Bank had no outstanding borrowings under the federal fund lines with these correspondent institutions and had $30.0 million of outstanding borrowings under the federal fund lines at December 31, 2017. Certain liquidity sources, such as federal funds lines, may be withdrawn by the correspondent bank at any time especially in the event of financial deterioration of the institution.

The Bank has also negotiated brokered deposit agreements with several institutions that have nationwide distribution capabilities. The Bank also participates in deposit placement services that can be used to provide customers to expanded deposit insurance coverage. At June 30, 2018, the Bank had $706.7 million of brokered deposits outstanding under these agreements, compared to $780.2 million at December 31, 2017.

If the Bank is no longer able to utilize the FHLB for borrowing, collateral currently used for FHLB borrowings could be transferred to other facilities such as the FRB’s discount window. In addition, the Bank could increase its usage of brokered deposits. Other borrowing arrangements may have higher rates than the FHLB would typically charge.

Capital Resources

Total shareholders’ equity at June 30, 2018 was $734.0 million, compared to $785.9 million at December 31, 2017, a decrease of $52.0 million. The decrease in shareholders’ equity was primarily the result of the redemption of the Series D preferred stock, dividends paid, and the change in accumulated other comprehensive income/ (loss), partially offset by net income.

The Company currently has one class of warrants to purchase common stock outstanding. These warrants were initially issued to the U.S. Department of the Treasury (the “TARP warrants”). As of June 30, 2018, 1.2 million TARP warrants at a strike price of $8.00 per share were outstanding, before adjusting for dividends paid on the Company’s common stock in excess of $0.01 per share. The TARP warrants expire in November 2018. The Company expects all of the TARP warrants to be exercised between now and the expiration date, as they are in-the-money. The number of shares of common stock to be issued, and the amount of cash to be received, from the exercise of the TARP warrants is dependent upon the price of the Company’s common stock on the date of exercise and whether the holder of the warrants being exercised elects a cash or cashless exercise.

The Company and the Bank are subject to capital rules issued by the Board of Governors of the Federal Reserve System (the “Federal Reserve”). Under these rules, the Company and the Bank are each required to maintain a minimum common equity Tier 1 capital to risk-weighted assets ratio of 4.5%, a minimum Tier 1 capital to risk-weighted assets ratio of 6.0%, a minimum total capital to risk-weighted assets ratio of 8.0%, and a minimum Tier 1 leverage ratio of 4.0%. Additionally, subject to a transition schedule, these rules require the Company and the Bank to establish a capital conservation buffer of common equity Tier 1 capital in an amount above the minimum risk-based capital requirements for “adequately capitalized” institutions equal to 2.5% of total risk-weighted assets, or face restrictions on the ability to pay dividends, pay discretionary bonuses, and to engage in share repurchases.

A Federal Reserve-supervised institution, such as the Bank, is considered “well capitalized” if it (i) has a total capital to risk-weighted assets ratio of 10.0% or greater; (ii) a Tier 1 capital to risk-weighted assets ratio of 8.0% or greater; (iii) a common equity Tier 1 capital ratio to risk-weighted assets of 6.5% or greater; (iv) a Tier 1 leverage ratio of 5.0% or greater; and (iv) is not subject to any written agreement, order, capital directive, or prompt corrective action directive to meet and maintain a specific capital level for any capital measure. The Bank is currently considered “well capitalized” under all regulatory definitions.

The following table presents the Company’s and the Bank’s regulatory capital and related ratios as of June 30, 2018 and December 31, 2017. Also presented are the minimum requirements established by the Federal Reserve and the FDIC as of those dates for the Company and the Bank, respectively, to meet applicable capital requirements and the requirements of the FDIC as of those dates for the Bank to be considered “well capitalized” under all regulatory definitions. The Federal Reserve and the Massachusetts Division of Banks may impose higher capital ratios than those listed below based upon the results of regulatory exams.

69

	Actual				For capital adequacy purposes (at least)				To be well capitalized under prompt corrective action provisions (at least)			Minimum capital ratio with capital conservation buffer (1)
	Amount		Ratio		Amount		Ratio		Amount		Ratio	Ratio
	(In thousands)
As of June 30, 2018
Common equity tier 1 risk-based capital
Company	$	665,628	10.90	%	$	274,706	4.5	%	n/a		n/a	7.0%
Boston Private Bank	718,886		11.80		274,040		4.5		$	395,835	6.5%	7.0
Tier 1 risk-based capital
Company	767,263		12.57		366,275		6.0		n/a		n/a	8.5
Boston Private Bank	718,886		11.80		365,386		6.0		487,181		8.0	8.5
Total risk-based capital
Company	842,299		13.80		488,367		8.0		n/a		n/a	10.5
Boston Private Bank	793,698		13.03		487,181		8.0		608,977		10.0	10.5
Tier 1 leverage capital
Company	767,263		9.21		244,183		4.0		n/a		n/a	4.0
Boston Private Bank	718,886		8.69		331,063		4.0		413,829		5.0	4.0
As of December 31, 2017
Common equity tier 1 risk-based capital
Company	$	607,800	10.32	%	$	265,153	4.5	%	n/a		n/a	7.0%
Boston Private Bank	694,201		11.83		264,028		4.5		$	381,373	6.5%	7.0
Tier 1 risk-based capital
Company	758,089		12.87		353,537		6.0		n/a		n/a	8.5
Boston Private Bank	694,201		11.83		352,037		6.0		469,382		8.0	8.5
Total risk-based capital
Company	832,182		14.12		471,383		8.0		n/a		n/a	10.5
Boston Private Bank	767,576		13.08		469,382		8.0		586,728		10.0	10.5
Tier 1 leverage capital
Company	758,089		9.34		324,725		4.0		n/a		n/a	4.0
Boston Private Bank	694,201		8.63		321,920		4.0		402,400		5.0	4.0

_____________________

n/a    not applicable

(1) Required capital ratios with the fully phased-in capital conservation buffer added to the minimum risk-based capital ratios. The fully phased-in ratios are effective for 2019, with lower requirements during the transition years 2016 through 2018.

The Company has sponsored the creation of two statutory trusts for the sole purpose of issuing trust preferred securities and investing the proceeds in junior subordinated debentures of the Company. In accordance with ASC 810-10-55, Consolidation - Overall - Implementation Guidance and Illustrations - Variable Interest Entities, these statutory trusts created by the Company are not consolidated into the Company’s financial statements; however, the Company reflects the amounts of junior subordinated debentures payable to the preferred stockholders of statutory trusts as debt in its financial statements. As of both June 30, 2018 and December 31, 2017, all $100.0 million of the net balance of these trust preferred securities qualified as Tier 1 capital.

Recent Accounting Pronouncements

See Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 14: Recent Accounting Pronouncements” for a description of upcoming changes to accounting principles generally accepted in the United States that may impact the Company.

70

Item 3.     Quantitative and Qualitative Disclosures about Market Risk

There have been no material changes in the Interest Rate Sensitivity and Market Risk as described in Part II. Item 7A. “Quantitative and Qualitative Disclosures About Market Risk – Interest Rate Sensitivity and Market Risk” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.

Item 4.     Controls and Procedures

(a) Evaluation of disclosure controls and procedures.

As required by Rule 13a-15 under the Exchange Act, the Company has evaluated, with the participation of management, including the Chief Executive Officer and Chief Financial Officer, as of the end of the period covered by this report, the effectiveness of the design and operation of its disclosure controls and procedures. In designing and evaluating the Company’s disclosure controls and procedures, the Company and its management recognize that any controls and procedures, no matter how well designed and operated, can provide only a reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating and implementing possible controls and procedures.

Based on such evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that such disclosure controls and procedures were effective as of June 30, 2018 in ensuring that material information required to be disclosed by the Company, including its consolidated subsidiaries, was made known to the certifying officers by others within the Company and its consolidated subsidiaries in the reports that it files or submits under the Exchange Act and is recorded, processed, summarized and reported within the time periods specified in the SEC rules and forms. On a quarterly basis, the Company evaluates the disclosure controls and procedures, and may from time to time make changes aimed at enhancing their effectiveness and to ensure that the Company’s systems evolve with its business.

(b) Change in internal controls over financial reporting.

There have been no changes in the Company’s internal controls over financial reporting that occurred during the quarter ended June 30, 2018, that have materially affected, or are reasonably likely to materially affect, the Company’s internal controls over financial reporting.

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PART II. Other Information

Item 1.     Legal Proceedings

The Company is involved in various legal proceedings. In the opinion of management, final disposition of these proceedings will not have a material adverse effect on the financial condition or results of operations of the Company.

Item 1A.     Risk Factors

Before deciding to invest in us or deciding to maintain or increase your investment, you should carefully consider the risks described in Part I. Item 1A. “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2017 as filed with the SEC. There have been no material changes to these risk factors since the filing of that report. 

Item 2.     Unregistered Sales of Equity Securities and Use of Proceeds

There were no unregistered sales of equity securities of the Company in the second quarter of 2018.

There were no repurchases of the Company’s outstanding common shares in the second quarter of 2018.

On March 28, 2018, the Company received a notice of non-objection from the Federal Reserve Bank of Boston for a share repurchase program of up to $20 million of the Company’s outstanding common shares. Under the program, shares may be repurchased from time to time in the open market in amounts and at prices the Company deems appropriate, subject to market conditions and other considerations, for a two-year period. The program does not obligate the Company to purchase any shares. The repurchases will be funded from cash on hand, proceeds from potential debt or other capital markets sources. The share repurchase program may be suspended or discontinued at any time without prior notice. The Company’s Board of Directors approved the program, subject to regulatory non-objection, on February 26, 2018.

The Company’s previous share repurchase program expired on February 28, 2018.

72

Item 3.     Defaults Upon Senior Securities

None.

Item 4.     Mine Safety Disclosures

Not applicable.

Item 5.     Other Information

None.

Item 6.     Exhibits

(a) Exhibits

Exhibit No.	Description	Incorporated by Reference			Filed or Furnished with this 10-Q
		Form	SEC Filing Date	Exhibit Number
31.1	Certification of Chief Executive Officer pursuant to Rule 13a - 14(a)/15d - 14(a) under the Securities Exchange Act of 1934				Filed
31.2	Certification of Chief Financial Officer pursuant to Rule 13a - 14(a)/15d - 14(a) under the Securities Exchange Act of 1934				Filed
32.1	Certification of the Chief Executive Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002				Furnished
32.2	Certification of the Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002				Furnished
101.INS	XBRL Instance Document				Filed
101.SCH	XBRL Taxonomy Extension Schema Document				Filed
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document				Filed
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document				Filed
101.LAB	XBRL Taxonomy Extension Label Linkbase Document				Filed
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document				Filed

73

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	BOSTON PRIVATE FINANCIAL HOLDINGS, INC.
	/s/ CLAYTON G. DEUTSCH
August 1, 2018	Clayton G. Deutsch
	Chief Executive Officer
	/s/    STEVEN M. GAVEN
August 1, 2018	Steven M. Gaven
	Executive Vice President, Chief Financial Officer

74

EX-31.1

Exhibit 31.1

CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER

I, Clayton G. Deutsch, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Boston Private Financial Holdings, Inc. (the “registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

	/s/    CLAYTON G. DEUTSCH
Date: August 1, 2018	Clayton G. Deutsch Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION OF THE CHIEF FINANCIAL OFFICER

I, Steven M. Gaven, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Boston Private Financial Holdings, Inc. (the “registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

	/s/    STEVEN M. GAVEN
	Steven M. Gaven
Date: August 1, 2018	Executive Vice President, Chief Financial Officer

EX-32.1

Exhibit 32.1*

CERTIFICATION PURSUANT TO

18 U.S.C. § 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

The undersigned Chief Executive Officer of Boston Private Financial Holdings, Inc. (the “Company”) hereby certifies that the Company’s Quarterly Report on Form 10-Q for the quarter endedJune 30, 2018 (the “Report”), as filed with the Securities and Exchange Commission on the date hereof, fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended, and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

	/s/    CLAYTON G. DEUTSCH
	Clayton G. Deutsch Chief Executive Officer
Date: August 1, 2018

*     This certification shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section, nor shall it be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934.

EX-32.2

Exhibit 32.2*

CERTIFICATION PURSUANT TO

18 U.S.C. § 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

The undersigned Chief Financial Officer of Boston Private Financial Holdings, Inc. (the “Company”) hereby certifies that the Company’s Quarterly Report on Form 10-Q for the quarter endedJune 30, 2018 (the “Report”), as filed with the Securities and Exchange Commission on the date hereof, fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended, and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

	/s/    STEVEN M. GAVEN
	Steven M. Gaven
Date: August 1, 2018	Executive Vice President, Chief Financial Officer

*     This certification shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section, nor shall it be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934.

XML

Document and Entity Information Document - shares	6 Months Ended
	Jun. 30, 2018	Jul. 27, 2018
Document Information [Line Items]
Entity Registrant Name	BOSTON PRIVATE FINANCIAL HOLDINGS INC
Entity Central Index Key	0000821127
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		84,565,703

XML

Consolidated Balance Sheets Statement - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Assets:
Cash and cash equivalents	$ 364,539	$ 120,541
Investment securities available-for-sale (amortized cost of $1,109,785 and $1,182,427 at June 30, 2018 and December 31, 2017, respectively)	1,076,967	1,170,328
Investment securities held-to-maturity (fair value of $76,747 and $73,781 at June 30, 2018 and December 31, 2017, respectively)	78,955	74,576
Stock in Federal Home Loan Bank and Federal Reserve Bank	70,127	59,973
Loans held for sale	4,622	4,697
Total loans	6,767,123	6,505,028
Less: Allowance for loan losses	73,464	74,742
Net loans	6,693,659	6,430,286
Other real estate owned (“OREO”)	108	0
Premises and equipment, net	46,421	37,640
Goodwill	75,598	75,598
Intangible assets, net	14,584	16,083
Fees receivable	10,405	11,154
Accrued interest receivable	23,732	22,322
Deferred income taxes, net	26,316	29,031
Other assets	230,170	259,515
Total assets	8,716,203	8,311,744
Liabilities:
Deposits	6,620,179	6,510,246
Securities sold under agreements to repurchase	58,824	32,169
Federal funds purchased	0	30,000
Federal Home Loan Bank borrowings	1,056,938	693,681
Junior subordinated debentures	106,363	106,363
Other liabilities	129,175	135,880
Total liabilities	7,971,479	7,508,339
Redeemable Noncontrolling Interests	10,747	17,461
Stockholders’ Equity:
Preferred stock, $1.00 par value; authorized: 2,000,000 shares; Series D, 6.95% Non-Cumulative Perpetual, issued and outstanding: zero shares at June 30, 2018 and 50,000 shares at December 31, 2017; liquidation preference: $1,000 per share	0	47,753
Common stock, $1.00 par value; authorized: 170,000,000 shares; issued and outstanding: 84,478,858 shares at June 30, 2018 and 84,208,538 shares at December 31, 2017	84,479	84,208
Additional paid-in capital	613,918	607,929
Retained earnings	56,912	49,526
Accumulated other comprehensive income/ (loss)	(23,328)	(8,658)
Total Company's shareholders’ equity	731,981	780,758
Noncontrolling interests	1,996	5,186
Total shareholders' equity	733,977	785,944
Total liabilities, redeemable noncontrolling interests and shareholders’ equity	$ 8,716,203	$ 8,311,744

XML

Consolidated Balance Sheets Parentheticals - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Investment securities available-for-sale at amortized cost	$ 1,109,785	$ 1,182,427
Investment securities held-to-maturity at fair value	$ 76,747	$ 73,781
Preferred Stock, Par or Stated Value Per Share	$ 1.00	$ 1.00
Preferred Stock, Shares Authorized	2,000,000	2,000,000
Common Stock, Par or Stated Value Per Share	$ 1.00	$ 1.00
Common Stock, Shares Authorized	170,000,000	170,000,000
Common Stock, Shares, Issued	84,478,858	84,208,538
Common Stock, Shares, Outstanding	84,478,858	84,208,538
Series D Preferred Stock [Member]
Preferred Stock, Shares Issued	0	50,000
Preferred Stock, Shares Outstanding	0	50,000
Preferred Stock, Liquidation Preference Per Share	$ 1,000	$ 1,000

XML

Consolidated Statements of Operations - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Interest and dividend income:
Loans		$ 64,048	$ 57,736	$ 124,977	$ 111,372
Taxable investment securities		1,501	1,592	3,011	3,262
Non-taxable investment securities		1,752	1,655	3,482	3,261
Mortgage-backed securities		3,049	3,495	6,227	6,999
Short-term investments and other		1,205	831	2,214	1,431
Total interest and dividend income		71,555	65,309	139,911	126,325
Interest expense:
Deposits		8,365	4,949	14,889	9,480
Federal Home Loan Bank borrowings		4,447	2,489	7,791	4,600
Junior subordinated debentures		1,008	716	1,854	1,387
Repurchase agreements and other short-term borrowings		190	10	449	71
Total interest expense		14,010	8,164	24,983	15,538
Net interest income		57,545	57,145	114,928	110,787
Provision/ (credit) for loan losses		453	(6,114)	(1,342)	(6,295)
Net interest income after provision/ (credit) for loan losses		57,092	63,259	116,270	117,082
Fees and other income:
Gain on sale of loans, net		63	59	137	197
Gain/ (loss) on sale of investments, net		7	237	(17)	256
Gain/ (loss) on OREO, net		0	0	0	(46)
Other		191	555	523	768
Total fees and other income		32,095	38,018	71,838	74,524
Operating expense:
Salaries and employee benefits		39,433	43,312	86,517	88,977
Occupancy and equipment		8,229	7,283	15,977	14,468
Professional services		2,872	3,106	6,049	6,420
Marketing and business development		2,070	1,971	3,663	3,631
Information systems		6,770	5,500	12,656	10,879
Amortization of intangibles		749	1,426	1,499	2,852
FDIC insurance		708	879	1,452	1,645
Other		3,553	4,344	7,428	7,729
Total operating expense		64,384	67,821	135,241	136,601
Income before income taxes		24,803	33,456	52,867	55,005
Income tax expense		17,399	9,963	23,425	16,516
Net income from continuing operations		7,404	23,493	29,442	38,489
Net income/ (loss) from discontinued operations		(2)	1,063	1,696	2,695
Net income before attribution to noncontrolling interests		7,402	24,556	31,138	41,184
Less: Net income attributable to noncontrolling interests		(968)	(1,150)	(2,018)	(2,116)
Net income attributable to the Company		6,434	23,406	29,120	39,068
Adjustments to net income attributable to the Company to arrive at net income attributable to common shareholders		(3,524)	(577)	(3,547)	(1,743)
Net income attributable to common shareholders, treasury stock method		$ 2,910	$ 22,829	$ 25,573	$ 37,325
Basic earnings per share attributable to common shareholders:
From continuing operations:		$ 0.03	$ 0.27	$ 0.29	$ 0.42
From discontinued operations:		0.00	0.01	0.02	0.03
Total attributable to common shareholders:		0.03	0.28	0.31	0.45
Diluted earnings per share attributable to common shareholders:
From continuing operations:		0.03	0.26	0.28	0.41
From discontinued operations:		0.00	0.01	0.02	0.03
Total attributable to common shareholders:		$ 0.03	$ 0.27	$ 0.30	$ 0.44
Common Stock [Member]
Basic earnings per share attributable to common shareholders:
Weighted average basic common shares outstanding		83,509,115	82,298,493	83,304,573	82,125,795
Diluted earnings per share attributable to common shareholders:
Weighted average diluted common shares outstanding	[1]	85,413,575	84,741,680	85,221,974	84,658,309
Investment Managers Segment [Member]
Interest expense:
Net interest income	[2]	$ 2	$ 4	$ 6	$ 8
Fees and other income:
Revenue from Contract with Customer, Excluding Assessed Tax		4,227	11,081	15,652	21,920
Total fees and other income	[2]	4,234	11,091	15,642	21,950
Operating expense:
Amortization of intangibles	[2]	0	651	0	1,301
Total operating expense	[2]	3,120	8,346	11,645	16,700
Income before income taxes	[2]	1,116	2,749	4,003	5,258
Income tax expense	[2]	249	894	920	1,738
Net income from continuing operations	[2]	867	1,855	3,083	3,520
Less: Net income attributable to noncontrolling interests	[2]	(202)	(512)	(690)	(974)
Net income attributable to the Company	[2]	665	1,343	2,393	2,546
Wealth Advisors Segment [Member]
Interest expense:
Net interest income		77	29	125	46
Fees and other income:
Revenue from Contract with Customer, Excluding Assessed Tax		13,693	12,961	27,205	25,784
Total fees and other income		13,717	12,980	27,256	25,823
Operating expense:
Amortization of intangibles		48	48	97	97
Total operating expense		9,227	8,943	19,763	18,386
Income before income taxes		4,567	4,066	7,618	7,483
Income tax expense		1,214	1,511	2,000	2,798
Net income from continuing operations		3,353	2,555	5,618	4,685
Less: Net income attributable to noncontrolling interests		(766)	(638)	(1,328)	(1,142)
Net income attributable to the Company		2,587	1,917	4,290	3,543
Wealth Management and Trust Segment [Member]
Fees and other income:
Revenue from Contract with Customer, Excluding Assessed Tax		11,169	11,161	23,320	21,987
Total fees and other income		11,293	11,274	23,567	22,195
Operating expense:
Amortization of intangibles		701	727	1,402	1,454
Total operating expense		11,058	11,937	21,752	25,810
Income before income taxes		235	(663)	1,815	(3,615)
Income tax expense		34	(239)	509	(1,405)
Net income from continuing operations		201	(424)	1,306	(2,210)
Net income attributable to the Company		201	(424)	1,306	(2,210)
Other Banking Fee Income [Member]
Fees and other income:
Revenue from Contract with Customer, Excluding Assessed Tax		$ 2,745	$ 1,964	$ 5,018	$ 3,658

[1] The diluted EPS computations for the three and six months ended June 30, 2018 and 2017 do not assume the conversion, exercise, or contingent issuance of the following shares for the following periods because the result would have been anti-dilutive for the periods indicated. As a result of the anti-dilution, the potential common shares excluded from the diluted EPS computation are as follows: Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017Shares excluded due to exercise price exceeding the average market price of common shares during the period (total outstanding):(In thousands)Potential common shares from: Stock options16 54 136 87Total shares excluded due to exercise price exceeding the average market price of common shares during the period16 54 136 87

[2] Results for the Investment Management segment for the three and six months ended June 30, 2017 include results for DGHM and Anchor. Results for the Investment Management segment for the three and six months ended June 30, 2018 include results for DGHM and results for Anchor through its sale date in April 2018. Assets for the Investment Management Segment at June 30, 2017 include assets of DGHM and Anchor. Assets for the Investment Management segment at June 30, 2018 include assets of DGHM.

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Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Net income attributable to the Company	$ 6,434	$ 23,406	$ 29,120	$ 39,068
Other comprehensive income/ (loss), net of tax [Abstract]
Unrealized gain/ (loss) on securities available-for-sale	(1,953)	4,380	(14,848)	6,474
Reclassification adjustment for net realized (gain)/ loss included in net income	0	(141)	0	(152)
Net unrealized gain/ (loss) on securities available-for-sale	(1,953)	4,239	(14,848)	6,322
Unrealized gain/ (loss) on cash flow hedges	124	(246)	712	(210)
Reclassification adjustment for net realized (gain)/ loss included in net income	(187)	206	(201)	386
Net change in unrealized gain/ (loss) on cash flow hedges	(63)	(40)	511	176
Net unrealized gain/ (loss) on other	1	0	1	12
Other comprehensive income/ (loss), net of tax	(2,015)	4,199	(14,336)	6,510
Total comprehensive income, attributable to the Company, net	$ 4,419	$ 27,605	$ 14,784	$ 45,578

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Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Preferred Stock Including Additional Paid in Capital [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Noncontrolling Interest [Member]
Beginning Balance at Dec. 31, 2016	$ 768,481	$ 47,753	$ 83,732	$ 597,454	$ 47,929	$ (12,548)	$ 4,161
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income attributable to the Company	39,068	0	0	0	39,068	0	0
Other comprehensive income/ (loss), net of tax	6,510	0	0	0	0	6,510	0
Dividends paid to common shareholders	(18,452)	0	0	0	(18,452)	0	0
Dividends paid to preferred shareholders	(1,738)	0	0	0	(1,738)	0	0
Net Change in Noncontrolling Interests	214	0	0	0	0	0	214
Net proceeds from issuance of [Abstract]
Net proceeds from issuance of common stock	721	0	73	648	0	0	0
Issuance of shares through incentive stock grants, net of shares forfeited, canceled, or withheld for employee taxes, value	(969)	0	(150)	(819)	0	0	0
Exercise of Warrants, Effect on Equity	1,877	0	261	1,616	0	0	0
Amortization of stock compensation and employee stock purchase plan	4,137	0	0	4,137	0	0	0
Stock options exercised	804	0	99	705	0	0	0
Other equity adjustments	(1,234)	0	0	(1,234)	0	0	0
Ending Balance at Jun. 30, 2017	799,419	47,753	84,015	602,507	66,807	(6,038)	4,375
Beginning Balance at Dec. 31, 2017	785,944	47,753	84,208	607,929	49,526	(8,658)	5,186
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Reclassification due to change in accounting principles	0	0	0	0	334	(334)	0
Net income attributable to the Company	29,120	0	0	0	29,120	0	0
Other comprehensive income/ (loss), net of tax	(14,336)	0	0	0	0	(14,336)	0
Dividends paid to common shareholders	(20,330)	0	0	0	(20,330)	0	0
Dividends paid to preferred shareholders	(1,738)	0	0	0	(1,738)	0	0
Net Change in Noncontrolling Interests	(3,190)	0	0	0	0	0	(3,190)
Stock Repurchased During Period, Value	(50,000)	(47,753)	0	(2,247)	0	0	0
Net proceeds from issuance of [Abstract]
Net proceeds from issuance of common stock	833	0	63	770	0	0	0
Issuance of shares through incentive stock grants, net of shares forfeited, canceled, or withheld for employee taxes, value	(1,892)	0	(236)	(1,656)	0	0	0
Exercise of Warrants, Effect on Equity	21	0	294	(273)	0	0	0
Amortization of stock compensation and employee stock purchase plan	3,399	0	0	3,399	0	0	0
Stock options exercised	1,257	0	150	1,107	0	0	0
Other equity adjustments	4,889	0	0	4,889	0	0	0
Ending Balance at Jun. 30, 2018	$ 733,977	$ 0	$ 84,479	$ 613,918	$ 56,912	$ (23,328)	$ 1,996

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Consolidated Statements of Stockholders' Equity Parentheticals - $ / shares	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Common Stock, Dividends, Per Share, Cash Paid	$ 0.24	$ 0.22
Common Stock [Member]
Shares of common stock issued	63,434	72,811
Stock Repurchased During Period, Shares	0	0
Stock Issued During Period, Shares, Share-based Compensation, Gross	2,457	0
Stock Issued During Period, Shares, Share-based Compensation, Forfeited	(126,752)	(87,419)
Shares of stock withheld for employee taxes	(112,565)	(62,087)
Common Stock, Dividends, Per Share, Cash Paid	$ 0.24	$ 0.22

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Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities:
Net income attributable to the Company	$ 29,120	$ 39,068
Adjustments to arrive at net income from continuing operations [Abstract]
Net income attributable to noncontrolling interests	(2,018)	(2,116)
Less: Net income from discontinued operations	(1,696)	(2,695)
Net income from continuing operations	29,442	38,489
Adjustments to reconcile net income from continuing operations to net cash provided by/(used in) operating activities:
Depreciation and amortization	11,200	10,575
Net income attributable to noncontrolling interests	(2,018)	(2,116)
Stock compensation, net of cancellations	3,399	4,137
Provision/ (credit) for loan losses	(1,342)	(6,295)
Loans originated for sale	(24,260)	(19,814)
Proceeds from sale of loans held for sale	24,486	20,605
Deferred income tax expense/ (benefit)	8,374	1,240
Net decrease/ (increase) in other operating activities	(17,613)	(6,434)
Net cash provided by/ (used in) operating activities of continuing operations	31,668	40,387
Net cash provided by/ (used in) operating activities of discontinued operations	1,696	2,695
Net cash provided by/ (used in) operating activities	33,364	43,082
Investment securities available for sale:
Purchases	(32,659)	(99,647)
Sales	35,550	103,031
Maturities, calls, redemptions, and principal payments	65,712	78,610
Purchases	11,876	14,945
Principal payments	7,288	8,745
(Investments)/ distributions in trusts, net	(329)	(514)
Purchase of additional Bank Owned Life Insurance (BOLI)	0	(50,000)
(Purchase)/ redemption of Federal Home Loan Bank and Federal Reserve Bank stock	(10,154)	(1,491)
Net (increase)/ decrease in portfolio loans	(263,692)	(165,426)
Proceeds from recoveries of loans previously charged-off	593	3,748
Proceeds from sale of OREO	0	1,644
Capital expenditures, net of sale proceeds	(14,453)	(6,298)
Proceeds from sale of affiliate	34,120	0
Net cash provided by/ (used in) investing activities	(189,900)	(142,543)
Cash flows from financing activities:
Net increase/ (decrease) in deposits	109,933	296,193
Net increase/ (decrease) in securities sold under agreements to repurchase	26,655	(30,392)
Net increase/ (decrease) in federal funds purchased	(30,000)	(40,000)
Net increase/ (decrease) in short-term Federal Home Loan Bank borrowings	350,000	(90,000)
Advances of long-term Federal Home Loan Bank borrowings	91,444	46,235
Repayments of long-term Federal Home Loan Bank borrowings	(78,187)	(71,451)
Payments for redemption of Series D preferred stock	(50,000)	0
Dividends paid to common shareholders	(20,330)	(18,452)
Dividends paid to preferred shareholders	(1,738)	(1,738)
Proceeds from warrant exercises	21	1,877
Proceeds from stock option exercises	1,257	804
Proceeds from issuance of common stock, net	(1,059)	(248)
Distributions paid to noncontrolling interests	(1,958)	(2,064)
Other equity adjustments	4,496	(828)
Net cash provided by/ (used in) financing activities	400,534	89,936
Net increase/ (decrease) in cash and cash equivalents	243,998	(9,525)
Cash and cash equivalents at beginning of year	120,541	106,557
Cash and cash equivalents at end of period	364,539	97,032
Supplementary schedule of non-cash investing and financing activities:
Cash paid for interest	23,742	15,591
Cash paid for income taxes, (net of refunds received)	9,827	16,600
Change in unrealized gain/ (loss) on available-for-sale securities, net of tax	(14,848)	6,322
Change in unrealized gain/ (loss) on cash flow hedges, net of tax	511	176
Change in unrealized gain/ (loss) on other, net of tax	1	12
Loans transferred into other real estate owned from loan portfolio	108	0
Loans charged-off	$ (529)	$ (521)

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Basis of Presentation and Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2018

Basis of Presentation and Summary of Significant Accounting Policies [Abstract]

Basis of Presentation and Significant Accounting Policies [Text Block]

Basis of Presentation and Summary of Significant Accounting Policies

Boston Private Financial Holdings, Inc. (the “Company” or “BPFH”), is a bank holding company (the “Holding Company”) with four reportable segments: Private Banking, Wealth Management and Trust, Investment Management, and Wealth Advisory.

The Private Banking segment is comprised of the banking operations of Boston Private Bank & Trust Company (the “Bank” or “Boston Private Bank”), a trust company chartered by The Commonwealth of Massachusetts whose deposits are insured by the Federal Deposit Insurance Corporation (the “FDIC”), and a wholly-owned subsidiary of the Company. Boston Private Bank is a member of the Federal Reserve Bank of Boston. Boston Private Bank primarily operates in three geographic markets: New England, the San Francisco Bay Area, and Southern California.

The Wealth Management and Trust segment is comprised of the operations of Boston Private Wealth LLC (“Boston Private Wealth”), a wholly-owned subsidiary of Boston Private Bank, and the trust operations of Boston Private Bank. The segment offers investment management, wealth management, retirement plan advisory, family office, financial planning, and trust services to individuals, families, and institutions. The Wealth Management and Trust segment operates in New England; Southeast Florida; Naples, Florida; California; and Madison, Wisconsin.

The Investment Management segment had two consolidated affiliates, Dalton, Greiner, Hartman, Maher & Co., LLC (“DGHM”) and Anchor Capital Advisors, LLC (“Anchor”) (together, the “Investment Managers”) included in its results for the first quarter of 2018. The assets and liabilities of Anchor were classified as held for sale as of March 31, 2018 and December 31, 2017. Assets held for sale were $58.8 million at December 31, 2017, and liabilities held for sale were $3.2 million at December 31, 2017. In December 2017, the Company entered into an agreement to sell its entire ownership interest in Anchor in a transaction that would result in Anchor being majority-owned by members of its management team. The transaction closed in April 2018. The Investment Management segment results for the second quarter of 2018 include results from DGHM for the full quarter and results from Anchor for the portion of April before the transaction was closed.

The Wealth Advisory segment has two consolidated affiliates, consisting of KLS Professional Advisors Group, LLC (“KLS”) and Bingham, Osborn & Scarborough, LLC (“BOS”) (together, the “Wealth Advisors” and, together with the Wealth Management and Trust, and Investment Management segments, the “Wealth and Investment businesses”).

The Company conducts substantially all of its business through its four reportable segments. All significant intercompany accounts and transactions have been eliminated in consolidation.

The unaudited interim consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”), and include all necessary adjustments of a normal recurring nature which, in the opinion of management, are required for a fair presentation of the results of operations and financial condition of the Company. The interim results of consolidated operations are not necessarily indicative of the results for the entire year.

The information in this report should be read in conjunction with the consolidated financial statements and accompanying notes included in the Annual Report on Form 10-K for the year ended December 31, 2017, as filed with the Securities and Exchange Commission (“SEC”). Prior period amounts are reclassified whenever necessary to conform to the current period presentation.

The Company’s significant accounting policies are 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, 2017, as filed with the SEC. For interim reporting purposes, the Company follows the same significant accounting policies, except for the following new accounting pronouncements from the Financial Accounting Standards Board (the “FASB”) that were adopted effective January 1, 2018:

• Accounting Standards Update (“ASU”) 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities (“ASU 2017-12”). As a result of implementing this standard, the Company reclassified $5 thousand in unrealized losses on derivatives related to hedge ineffectiveness from accumulated other comprehensive income to retained earnings as of January 1, 2018. This ASU will provide more flexibility in the Company’s risk management activities and we believe it will enhance the Company’s ability to employ risk management strategies, while improving the transparency and understanding of those strategies for financial statement users.

• ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (“ASU 2017-07”). This amendment requires an employer to report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. As a result of the retrospective adoption of this ASU, $181 thousand and $341 thousand for the three and six months ended June 30, 2017, respectively, has been reclassified from salaries and employee benefits expense to other expense within the Company’s consolidated statement of operations. For the three and six months ended June 30, 2018, $145 thousand and $280 thousand, respectively, is presented within other expense that would have been presented within salaries and employee benefits prior to adoption of ASU 2017-07.

• ASU 2016-15, Statement of Cash Flows (Topic 230) (“ASU 2016-15”).  This update is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. This ASU is effective for the Company beginning on January 1, 2018. The guidance requires application using a retrospective transition method. This ASU did not have an impact on the Company’s consolidated financial statements.

• ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). This amendment requires equity investments to be measured at fair value with changes in fair value, net of tax, recognized in net income. As a result of implementing this standard, the Company reclassified $339 thousand in unrealized gains on available-for-sale equity investments, net of tax, from accumulated other comprehensive income to retained earnings as of January 1, 2018. Additionally, this amendment requires that entities use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. As a result of implementing this standard, the Company’s updated process includes identifying a fair value for loans using the exit price notion. See Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 5: Fair Value Measurements” for further details.

• ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which was subsequently amended by additional ASUs, including ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) and ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, collectively, “ASU 2014-09 et al.” ASU 2014-09 et al. was adopted using the modified retrospective transition method as of January 1, 2018, however no cumulative effect adjustment was required. This new guidance was applied to all revenue contracts in place at the date of adoption. See Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 13: Revenue Recognition” for further details.

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Earnings Per Share

6 Months Ended

Jun. 30, 2018

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

Earnings Per Share

The treasury stock method of calculating earnings per share (“EPS”) is presented below for the three and six months ended June 30, 2018 and 2017. The following tables present the computations of basic and diluted EPS:

	Three months ended June 30,						Six months ended June 30,
	2018			2017			2018			2017
	(In thousands, except share and per share data)
Basic earnings per share - Numerator:
Net income from continuing operations	$	7,404		$	23,493		$	29,442		$	38,489
Less: Net income attributable to noncontrolling interests	968			1,150			2,018			2,116
Net income from continuing operations attributable to the Company	6,436			22,343			27,424			36,373
Decrease/ (increase) in noncontrolling interests’ redemption values (1)	(408		)	292			438			(5		)
Dividends on preferred stock (2)	(3,116		)	(869		)	(3,985		)	(1,738		)
Total adjustments to income attributable to common shareholders	(3,524		)	(577		)	(3,547		)	(1,743		)
Net income from continuing operations attributable to common shareholders, treasury stock method	2,912			21,766			23,877			34,630
Net income/ (loss) from discontinued operations	(2		)	1,063			1,696			2,695
Net income attributable to common shareholders, treasury stock method	$	2,910		$	22,829		$	25,573		$	37,325
Basic earnings per share - Denominator:
Weighted average basic common shares outstanding	83,509,115			82,298,493			83,304,573			82,125,795
Per share data - Basic earnings per share from:
Continuing operations	$	0.03		$	0.27		$	0.29		$	0.42
Discontinued operations	$	—		$	0.01		$	0.02		$	0.03
Total attributable to common shareholders	$	0.03		$	0.28		$	0.31		$	0.45

	Three months ended June 30,					Six months ended June 30,
	2018			2017		2018		2017
	(In thousands, except share and per share data)
Diluted earnings per share - Numerator:
Net income from continuing operations attributable to common shareholders, after assumed dilution	$	2,912		$	21,766	$	23,877	$	34,630
Net income/ (loss) from discontinued operations	(2		)	1,063		1,696		2,695
Net income attributable to common shareholders, after assumed dilution	$	2,910		$	22,829	$	25,573	$	37,325
Diluted earnings per share - Denominator:
Weighted average basic common shares outstanding	83,509,115			82,298,493		83,304,573		82,125,795
Dilutive effect of:
Stock options, performance-based and time-based restricted stock, and performance-based and time-based restricted stock units, and other dilutive securities (3)	1,076,049			1,338,939		1,112,938		1,394,605
Warrants to purchase common stock (3)	828,411			1,104,248		804,463		1,137,909
Dilutive common shares	1,904,460			2,443,187		1,917,401		2,532,514
Weighted average diluted common shares outstanding (3)	85,413,575			84,741,680		85,221,974		84,658,309
Per share data - Diluted earnings per share from:
Continuing operations	$	0.03		$	0.26	$	0.28	$	0.41
Discontinued operations	$	—		$	0.01	$	0.02	$	0.03
Total attributable to common shareholders	$	0.03		$	0.27	$	0.30	$	0.44
Dividends per share declared and paid on common stock	$	0.12		$	0.11	$	0.24	$	0.22

_____________________

(1) See Part II. Item 8. “Financial Statements and Supplementary Data - Note 14: Noncontrolling Interests” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 for a description of the redemption values related to the redeemable noncontrolling interests. In accordance with the FASB Accounting Standards Codification (“ASC”) 480, Distinguishing Liabilities from Equity (“ASC 480”), an increase in redemption value from period to period reduces income attributable to common shareholders. Decreases in redemption value from period to period increase income attributable to common shareholders, but only to the extent that the cumulative change in redemption value remains a cumulative increase since adoption of this standard in the first quarter of 2009.

(2) Consideration paid in excess of carrying value for the redemption of the 6.95% Non-Cumulative Perpetual Preferred Stock, Series D (“the Series D preferred stock”) of $2.2 million is considered a deemed dividend and, for purposes of calculating EPS, reduces net income attributable to common shareholders for the three and six month ended June 30, 2018.

(3) The diluted EPS computations for the three and six months ended June 30, 2018 and 2017 do not assume the conversion, exercise, or contingent issuance of the following shares for the following periods because the result would have been anti-dilutive for the periods indicated. As a result of the anti-dilution, the potential common shares excluded from the diluted EPS computation are as follows:

	Three months ended June 30,		Six months ended June 30,
	2018	2017	2018	2017
Shares excluded due to exercise price exceeding the average market price of common shares during the period (total outstanding):	(In thousands)
Potential common shares from:
Stock options	16	54	136	87
Total shares excluded due to exercise price exceeding the average market price of common shares during the period	16	54	136	87

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Reportable Segments

6 Months Ended

Jun. 30, 2018

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, 2017.

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 and six months ended June 30, 2018 and 2017. Interest expense on junior subordinated debentures is reported at the Holding Company.

	Three months ended June 30,					Six months ended June 30,
	2018		2017			2018			2017
Private Banking	(In thousands)
Net interest income	$	58,447	$	57,783		$	116,578		$	112,039
Fees and other income	2,825		2,634			5,300			4,462
Total revenues	61,272		60,417			121,878			116,501
Provision/ (credit) for loan losses	453		(6,114		)	(1,342		)	(6,295		)
Operating expense	39,670		36,904			79,297			71,962
Income before income taxes	21,149		29,627			43,923			50,834
Income tax expense	3,981		9,209			8,594			15,478
Net income from continuing operations	17,168		20,418			35,329			35,356
Net income attributable to the Company	$	17,168	$	20,418		$	35,329		$	35,356
Assets	$	8,637,774	$	7,951,911		$	8,637,774		$	7,951,911
Depreciation	$	2,031	$	1,343		$	3,615		$	2,714

	Three months ended June 30,					Six months ended June 30,
	2018		2017			2018		2017
Wealth Management and Trust	(In thousands)
Fees and other income	$	11,293	$	11,274		$	23,567	$	22,195
Operating expense	11,058		11,937			21,752		25,810
Income/ (loss) before income taxes	235		(663		)	1,815		(3,615		)
Income tax expense/ (benefit)	34		(239		)	509		(1,405		)
Net income/ (loss) from continuing operations	201		(424		)	1,306		(2,210		)
Net income/ (loss) attributable to the Company	$	201	$	(424	)	$	1,306	$	(2,210	)
Assets	$	73,202	$	74,842		$	73,202	$	74,842
Amortization of intangibles	$	701	$	727		$	1,402	$	1,454
Depreciation	$	334	$	341		$	655	$	678

	Three months ended June 30,				Six months ended June 30,
	2018		2017		2018		2017
Investment Management (1)	(In thousands)
Net interest income	$	2	$	4	$	6	$	8
Fees and other income	4,234		11,091		15,642		21,950
Total revenues	4,236		11,095		15,648		21,958
Operating expense	3,120		8,346		11,645		16,700
Income before income taxes	1,116		2,749		4,003		5,258
Income tax expense	249		894		920		1,738
Net income from continuing operations	867		1,855		3,083		3,520
Noncontrolling interests	202		512		690		974
Net income attributable to the Company	$	665	$	1,343	$	2,393	$	2,546
Assets	$	7,189	$	91,915	$	7,189	$	91,915
Amortization of intangibles	$	—	$	651	$	—	$	1,301
Depreciation	$	32	$	61	$	66	$	127

	Three months ended June 30,				Six months ended June 30,
	2018		2017		2018		2017
Wealth Advisory	(In thousands)
Net interest income	$	77	$	29	$	125	$	46
Fees and other income	13,717		12,980		27,256		25,823
Total revenues	13,794		13,009		27,381		25,869
Operating expense	9,227		8,943		19,763		18,386
Income before income taxes	4,567		4,066		7,618		7,483
Income tax expense	1,214		1,511		2,000		2,798
Net income from continuing operations	3,353		2,555		5,618		4,685
Noncontrolling interests	766		638		1,328		1,142
Net income attributable to the Company	$	2,587	$	1,917	$	4,290	$	3,543
Assets	$	76,175	$	75,247	$	76,175	$	75,247
Amortization of intangibles	$	48	$	48	$	97	$	97
Depreciation	$	164	$	235	$	327	$	461

	Three months ended June 30,						Six months ended June 30,
	2018			2017			2018			2017
Holding Company and Eliminations	(In thousands)
Net interest income	$	(981	)	$	(671	)	$	(1,781	)	$	(1,306	)
Fees and other income	26			39			73			94
Total revenues	(955		)	(632		)	(1,708		)	(1,212		)
Operating expense	1,309			1,691			2,784			3,743
Income/ (loss) before income taxes	(2,264		)	(2,323		)	(4,492		)	(4,955		)
Income tax expense/ (benefit) (2)	11,921			(1,412		)	11,402			(2,093		)
Net income/ (loss) from continuing operations	(14,185		)	(911		)	(15,894		)	(2,862		)
Discontinued operations	(2		)	1,063			1,696			2,695
Net income/ (loss) attributable to the Company	$	(14,187	)	$	152		$	(14,198	)	$	(167	)
Assets (including eliminations)	$	(78,137	)	$	(86,269	)	$	(78,137	)	$	(86,269	)

	Three months ended June 30,						Six months ended June 30,
	2018			2017			2018			2017
Total Company	(In thousands)
Net interest income	$	57,545		$	57,145		$	114,928		$	110,787
Fees and other income	32,095			38,018			71,838			74,524
Total revenues	89,640			95,163			186,766			185,311
Provision/ (credit) for loan losses	453			(6,114		)	(1,342		)	(6,295		)
Operating expense	64,384			67,821			135,241			136,601
Income before income taxes	24,803			33,456			52,867			55,005
Income tax expense	17,399			9,963			23,425			16,516
Net income from continuing operations	7,404			23,493			29,442			38,489
Noncontrolling interests	968			1,150			2,018			2,116
Discontinued operations	(2		)	1,063			1,696			2,695
Net income attributable to the Company	$	6,434		$	23,406		$	29,120		$	39,068
Assets	$	8,716,203		$	8,107,646		$	8,716,203		$	8,107,646
Amortization of intangibles	$	749		$	1,426		$	1,499		$	2,852
Depreciation	$	2,561		$	1,980		$	4,663		$	3,980

_____________________

(1) Results for the Investment Management segment for the three and six months ended June 30, 2017 include results for DGHM and Anchor. Results for the Investment Management segment for the three and six months ended June 30, 2018 include results for DGHM and results for Anchor through its sale date in April 2018. Assets for the Investment Management Segment at June 30, 2017 include assets of DGHM and Anchor. Assets for the Investment Management segment at June 30, 2018 include assets of DGHM.

(2) Income tax expense/ (benefit) for the three and six months ended June 30, 2018 include $12.7 million in additional expense related to the sale of Anchor in April 2018.

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Investments

6 Months Ended

Jun. 30, 2018

Investments [Abstract]

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

Investments

The following tables present a summary of investment securities:

	Amortized Cost		Unrealized					Fair Value
			Gains		Losses
	(In thousands)
At June 30, 2018
Available-for-sale securities at fair value:
U.S. government and agencies	$	35,061	$	—	$	(1,361	)	$	33,700
Government-sponsored entities	275,881		—		(6,277		)	269,604
Municipal bonds	297,257		1,722		(3,790		)	295,189
Mortgage-backed securities (1)	493,644		260		(23,372		)	470,532
Other	7,942		—		—			7,942
Total	$	1,109,785	$	1,982	$	(34,800	)	$	1,076,967
Held-to-maturity securities at amortized cost:
U.S. government and agencies	$	11,902	$	2	$	—		$	11,904
Mortgage-backed securities (1)	67,053		—		(2,210		)	64,843
Total	$	78,955	$	2	$	(2,210	)	$	76,747
At December 31, 2017
Available-for-sale securities at fair value:
U.S. government and agencies	$	35,132	$	—	$	(833	)	$	34,299
Government-sponsored entities	305,101		22		(2,622		)	302,501
Municipal bonds	299,647		4,559		(1,148		)	303,058
Mortgage-backed securities (1)	521,753		491		(12,568		)	509,676
Other	20,794		—		—			20,794
Total	$	1,182,427	$	5,072	$	(17,171	)	$	1,170,328
Held-to-maturity securities at amortized cost:
Mortgage-backed securities (1)	$	74,576	$	—	$	(795	)	$	73,781
Total	$	74,576	$	—	$	(795	)	$	73,781

_____________________

(1)  All mortgage-backed securities are guaranteed by the U.S. government, U.S. government agencies, or government-sponsored entities.

The following table presents the maturities of available-for-sale investment securities, based on contractual maturity, as of June 30, 2018. Certain securities are callable before their final maturity. Additionally, certain securities (such as mortgage-backed securities) are shown within the table below based on their final (contractual) maturity, but due to prepayments and amortization are expected to have shorter lives.

	Available-for-sale Securities
	Amortized cost		Fair value
	(In thousands)
Within one year	$	75,733	$	75,473
After one, but within five years	313,162		306,903
After five, but within ten years	312,887		298,202
Greater than ten years	408,003		396,389
Total	$	1,109,785	$	1,076,967

The following table presents the maturities of held-to-maturity investment securities, based on contractual maturity, as of June 30, 2018.

	Held-to-maturity Securities
	Amortized cost		Fair value
	(In thousands)
Within one year	$	11,902	$	11,904
After one, but within five years	—		—
After five, but within ten years	33,063		32,020
Greater than ten years	33,990		32,823
Total	$	78,955	$	76,747

The following table presents the proceeds from sales, gross realized gains and gross realized losses for available-for-sale securities that were sold or called during the following periods as well as changes in the fair value of equity securities as prescribed by ASC 321, Investment - Equity Securities. ASU 2016-01, Recognition and Measurements of Financial Assets and Financial Liabilities was adopted on January 1, 2018, at which time a cumulative effect adjustment of $339 thousand was recorded to reclassify the amount of accumulated unrealized gains related to equity securities from accumulated other comprehensive income to retained earnings.

	Three months ended June 30,					Six months ended June 30,
	2018		2017			2018			2017
	(In thousands)
Proceeds from sales and calls	$	19,673	$	70,314		$	35,550		$	103,031
Realized gains	—		255			7			274
Realized losses	—		(18		)	(1		)	(18		)
Change in unrealized gain/ (loss) on equity securities reflected in the consolidated statement of operations	7		n/a			(23		)	n/a

The following tables present information regarding securities at June 30, 2018 and December 31, 2017 having temporary impairment, due to the fair values having declined below the amortized cost of the individual securities, and the time period that the investments have been temporarily impaired.

	Less than 12 months					12 months or longer					Total
	Fair value		Unrealized losses			Fair value		Unrealized losses			Fair value		Unrealized losses			# of securities
	(In thousands, except number of securities)
June 30, 2018
Available-for-sale securities
U.S. government and agencies	$	9,861	$	(114	)	$	23,839	$	(1,247	)	$	33,700	$	(1,361	)	6
Government-sponsored entities	212,331		(4,038		)	57,273		(2,239		)	269,604		(6,277		)	40
Municipal bonds	132,307		(1,526		)	49,256		(2,264		)	181,563		(3,790		)	95
Mortgage-backed securities (1)	98,941		(3,400		)	358,348		(19,972		)	457,289		(23,372		)	112
Total	$	453,440	$	(9,078	)	$	488,716	$	(25,722	)	$	942,156	$	(34,800	)	253
Held-to-maturity securities
Mortgage-backed securities (1)	$	48,598	$	(1,643	)	$	16,245	$	(567	)	$	64,843	$	(2,210	)	16
Total	$	48,598	$	(1,643	)	$	16,245	$	(567	)	$	64,843	$	(2,210	)	16

	Less than 12 months					12 months or longer					Total
	Fair value		Unrealized losses			Fair value		Unrealized losses			Fair value		Unrealized losses			# of securities
	(In thousands, except number of securities)
December 31, 2017
Available-for-sale securities
U.S. government and agencies	$	14,902	$	(79	)	$	19,397	$	(754	)	$	34,299	$	(833	)	6
Government-sponsored entities	220,275		(1,350		)	38,273		(1,272		)	258,548		(2,622		)	36
Municipal bonds	46,112		(131		)	50,842		(1,017		)	96,954		(1,148		)	63
Mortgage-backed securities (1)	97,117		(903		)	386,785		(11,665		)	483,902		(12,568		)	103
Total	$	378,406	$	(2,463	)	$	495,297	$	(14,708	)	$	873,703	$	(17,171	)	208
Held-to-maturity securities
Mortgage-backed securities (1)	$	59,218	$	(534	)	$	14,563	$	(261	)	$	73,781	$	(795	)	16
Total	$	59,218	$	(534	)	$	14,563	$	(261	)	$	73,781	$	(795	)	16

_____________________

(1)  All mortgage-backed securities are guaranteed by the U.S. government, U.S. government agencies, or government-sponsored entities.

As of June 30, 2018, the U.S. government and agencies securities, government-sponsored entities securities and mortgage-backed securities in the first table above had current Standard and Poor’s credit ratings of AAA. The municipal bonds in the first table above had a current Standard and Poor’s credit rating of at least AA-. At June 30, 2018, the Company does not consider these investments other-than-temporarily impaired because the decline in fair value on investments is primarily attributed to changes in interest rates and not credit quality.

At June 30, 2018 and December 31, 2017, the amount of investment securities in an unrealized loss position greater than 12 months, as well as in total, was primarily due to changes in interest rates and not credit quality. As of June 30, 2018, the Company had no intent to sell any securities in an unrealized loss position and it is not more likely than not that the Company would be forced to sell any of these securities prior to the full recovery of all unrealized loss amounts.

Cost method investments, which are included in other assets, can be temporarily impaired when the fair values decline below the amortized costs of the individual investments. There were no cost method investments with unrealized losses as of June 30, 2018 or December 31, 2017. The Company’s cost method investments primarily include low income housing partnerships which generate tax credits. The Company also holds partnership interests in venture capital funds formed to provide financing to small businesses and to promote community development. The Company had $46.0 million and $39.4 million in cost method investments included in other assets as of June 30, 2018 and December 31, 2017, respectively.

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Fair Value Measurements

6 Months Ended

Jun. 30, 2018

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

Fair Value Measurements

Fair value is defined under GAAP as the exchange price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants on the measurement date. The Company determines the fair values of its financial instruments based on the fair value hierarchy established in ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value. Financial instruments are considered Level 1 when valuation can be based on quoted prices in active markets for identical assets or liabilities. Level 2 financial instruments are valued using quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or models using inputs that are observable or can be corroborated by observable market data of substantially the full term of the assets or liabilities. Financial instruments are considered Level 3 when their values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable and when determination of the fair value requires significant management judgment or estimation.

The following tables present the Company’s assets and liabilities measured at fair value on a recurring basis as of June 30, 2018 and December 31, 2017, aggregated by the level in the fair value hierarchy within which those measurements fall:

	As of June 30, 2018		Fair value measurements at reporting date using:
			Quoted prices in active markets for identical assets (Level 1)		Significant  other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
	(In thousands)
Assets:
Available-for-sale securities:
U.S. government and agencies	$	33,700	$	33,570	$	130	$	—
Government-sponsored entities	269,604		—		269,604		—
Municipal bonds	295,189		—		295,189		—
Mortgage-backed securities	470,532		—		470,532		—
Other	7,942		7,942		—		—
Total available-for-sale securities	1,076,967		41,512		1,035,455		—
Derivatives - interest rate customer swaps	26,865		—		26,865		—
Derivatives - interest rate swaps	1,197		—		1,197		—
Derivatives - risk participation agreement	24		—		24		—
Derivatives - customer foreign exchange forwards	1		—		1		—
Trading securities held in a “rabbi trust”	7,392		7,392		—		—
Liabilities:
Derivatives - interest rate customer swaps	$	27,290	$	—	$	27,290	$	—
Derivatives - risk participation agreement	113		—		113		—
Derivatives - customer foreign exchange forwards	1		—		1		—
Deferred compensation “rabbi trust”	7,392		7,392		—		—

			Fair value measurements at reporting date using:
	As of December 31, 2017		Quoted prices in active markets for identical assets (Level 1)		Significant  other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
	(In thousands)
Assets:
Available-for-sale securities:
U.S. government and agencies	$	34,299	$	34,096	$	203	$	—
Government-sponsored entities	302,501		—		302,501		—
Municipal bonds	303,058		—		303,058		—
Mortgage-backed securities	509,676		—		509,676		—
Other	20,794		20,794		—		—
Total available-for-sale securities	1,170,328		54,890		1,115,438		—
Derivatives - interest rate customer swaps	18,575		—		18,575		—
Derivatives - interest rate swaps	555		—		555		—
Derivatives - risk participation agreements	1		—		1		—
Derivatives - customer foreign exchange forwards	2		—		2		—
Trading securities held in a rabbi trust	7,062		7,062		—		—
Liabilities:
Derivatives - interest rate customer swaps	$	18,953	$	—	$	18,953	$	—
Derivatives - interest rate swaps	80		—		80		—
Derivatives - risk participation agreements	108		—		108		—
Derivatives - customer foreign exchange forwards	2		—		2		—
Deferred compensation rabbi trust	7,062		7,062		—		—

As of June 30, 2018 and December 31, 2017, available-for-sale securities consisted of U.S. government and agencies securities, government-sponsored entities securities, municipal bonds, mortgage-backed securities, and other available-for-sale securities. Available-for-sale Level 1 securities are valued with prices quoted in active markets and include U.S. Treasury securities (which are categorized as U.S. government and agencies securities) and equities (which are categorized as other available-for-sale securities). Available-for-sale Level 2 securities generally have quoted prices but are traded less frequently than exchange-traded securities and can be priced using market data from similar assets and include government-sponsored entities securities, municipal bonds, mortgage-backed securities, and certain investments in SBA loans (which are categorized as U.S. government and agencies securities). No investments held as of June 30, 2018 or December 31, 2017 were categorized as Level 3. There were no changes in the valuation techniques used for measuring the fair value of available-for-sale securities in the six months ended June 30, 2018.

In managing its interest rate and credit risk, the Company utilizes derivative instruments including interest rate customer swaps, interest rate swaps, and risk participation agreements. As a service to its customers, the Company may utilize derivative instruments including customer foreign exchange forward contracts to manage its foreign exchange risk, if any. The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities, and therefore, they have been categorized as a Level 2 measurement as of June 30, 2018 and December 31, 2017. See Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 8: Derivatives and Hedging Activities” for further details.

To comply with the provisions of ASC 820, the Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts and guarantees. Counterparty exposure is evaluated by netting positions that are subject to master netting agreements, as well as considering the amount of collateral securing the position.

The Company has determined that the majority of inputs used to value its derivatives fall within Level 2 of the fair value hierarchy. As a result, the Company has determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy as of June 30, 2018 and December 31, 2017.

Trading securities held in a rabbi trust consist of publicly traded mutual fund investments that are valued at prices quoted in active markets. Therefore, they have been categorized as a Level 1 measurement as of June 30, 2018 and December 31, 2017.

The Company accounts for its investments held in the rabbi trust in accordance with ASC 320, Investments - Debt and Equity Securities. The investments held in the rabbi trust are classified as trading securities. The assets of the rabbi trust are carried at their fair value within Other assets on the consolidated balance sheet. Changes in the fair value of the securities are recorded as an increase or decrease in Other income each quarter. The deferred compensation accrual reflects the market value of the securities and is included within Other liabilities on the consolidated balance sheet. Changes in the fair value of the accrual are recorded as an increase or decrease in Other expense each quarter.

There were no transfers between levels for assets or liabilities recorded at fair value on a recurring basis during the three and six months endedJune 30, 2018 and 2017.

There were no Level 3 assets valued on a recurring basis at June 30, 2018 or December 31, 2017.

The following tables present the Company’s assets and liabilities measured at fair value on a non-recurring basis during the periods ended June 30, 2018 and 2017, respectively, aggregated by the level in the fair value hierarchy within which those measurements fall.

	As of June 30, 2018		Fair value measurements at reporting date using:						Gain (losses) from fair value changes
			Quoted prices in active markets for identical assets (Level 1)		Significant  other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Three months ended June 30, 2018			Six months ended June 30, 2018
	(In thousands)
Assets:
Impaired loans (1)	$	3,051	$	—	$	—	$	3,051	$	(711	)	$	(927	)

_____________________

(1) Collateral-dependent impaired loans held at June 30, 2018 that had write-downs in fair value or whose specific reserve changed during the first six months of 2018.

	As of June 30, 2017		Fair value measurements at reporting date using:						Gain (losses) from fair value changes
			Quoted prices in active markets for identical assets (Level 1)		Significant  other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Three months ended June 30, 2017			Six months ended June 30, 2017
	(In thousands)
Assets:
Impaired loans (1)	$	1,040	$	—	$	—	$	1,040	$	(221	)	$	(219	)

_____________________

(1) Collateral-dependent impaired loans held at June 30, 2017 that had write-downs in fair value or whose specific reserve changed during the first six months of 2017.

The following tables present additional quantitative information about assets measured at fair value on a non-recurring basis for which the Company has utilized Level 3 inputs to determine fair value:

	As of June 30, 2018
	Fair Value		Valuation Technique	Unobservable Input	Range of Inputs Utilized	Weighted Average of Inputs Utilized
	(In thousands)
Impaired Loans	$	3,051	Appraisals of Collateral	Discount for costs to sell	0% - 24%	9%
				Appraisal adjustments	0% - 20%	7%

	As of June 30, 2017
	Fair Value		Valuation Technique	Unobservable Input	Range of Inputs Utilized	Weighted Average of Inputs Utilized
	(In thousands)
Impaired Loans	$	1,040	Appraisals of Collateral	Discount for costs to sell	0% - 7%	6%
				Appraisal adjustments	0% - 20%	16%

Impaired loans include those loans that were adjusted to the fair value of underlying collateral as required under ASC 310, Receivables. The amount does not include impaired loans that are measured based on expected future cash flows discounted at the respective loan’s original effective interest rate, as that amount is not considered a fair value measurement. The Company uses appraisals, which management may adjust to reflect estimated fair value declines, or apply other discounts to appraised values for unobservable factors resulting from its knowledge of the property or consideration of broker quotes. The appraisers use a market, income, and/or a cost approach in determining the value of the collateral. Therefore they have been categorized as a Level 3 measurement.

The following tables present the carrying values and fair values of the Company’s financial instruments that are not measured at fair value on a recurring basis:

	As of June 30, 2018
	Book Value		Fair Value		Quoted prices  in active markets for identical assets  (Level 1)		Significant  other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
	(In thousands)
FINANCIAL ASSETS:
Cash and cash equivalents	$	364,539	$	364,539	$	364,539	$	—	$	—
Investment securities held-to-maturity	78,955		76,747		11,904		64,843		—
Loans held for sale	4,622		4,691		—		4,691		—
Loans, net	6,693,659		6,680,524		—		—		6,680,524
Other financial assets	104,264		104,264		—		104,264		—
FINANCIAL LIABILITIES:
Deposits	6,620,179		6,617,149		—		6,617,149		—
Securities sold under agreements to repurchase	58,824		58,824		—		58,824		—
Federal Home Loan Bank borrowings	1,056,938		1,053,066		—		1,053,066		—
Junior subordinated debentures	106,363		96,363		—		—		96,363
Other financial liabilities	3,465		3,465		—		3,465		—

	As of December 31, 2017
	Book Value		Fair Value		Quoted prices  in active markets for identical assets  (Level 1)		Significant  other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
	(In thousands)
FINANCIAL ASSETS:
Cash and cash equivalents	$	120,541	$	120,541	$	120,541	$	—	$	—
Investment securities held-to-maturity	74,576		73,781		—		73,781		—
Loans held for sale	4,697		4,737		—		4,737		—
Loans, net	6,430,286		6,388,297		—		—		6,388,297
Other financial assets	93,449		93,449		—		93,449		—
FINANCIAL LIABILITIES:
Deposits	6,510,246		6,509,197		—		6,509,197		—
Securities sold under agreements to repurchase	32,169		32,169		—		32,169		—
Federal funds purchased	30,000		30,000		—		30,000		—
Federal Home Loan Bank borrowings	693,681		692,402		—		692,402		—
Junior subordinated debentures	106,363		96,363		—		—		96,363
Other financial liabilities	2,224		2,224		—		2,224		—

The estimated fair values have been determined by using available quoted market information or other appropriate valuation methodologies. The aggregate fair value amounts presented above do not represent the underlying value of the financial assets and liabilities of the Company taken as a whole as they do not reflect any premium or discount the Company might recognize if the assets were sold or the liabilities sold, settled, or redeemed. An excess of fair value over book value on financial assets represents a premium, or gain, the Company might recognize if the assets were sold, while an excess of book value over fair value on financial liabilities represents a premium, or gain, the Company might recognize if the liabilities were sold, settled, or redeemed prior to maturity. Conversely, losses would be recognized if assets were sold where the book value exceeded the fair value or liabilities were sold where the fair value exceeded the book value.

The fair value estimates provided are made at a specific point in time, based on relevant market information and the characteristics of the financial instrument. The estimates do not provide for any premiums or discounts that could result from concentrations of ownership of a financial instrument. Because no active market exists for some of the Company’s financial instruments, certain fair value estimates are based on subjective judgments regarding current economic conditions, risk characteristics of the financial instruments, future expected loss experience, prepayment assumptions, and other factors. The resulting estimates involve uncertainties and are considered best estimates. Changes made to any of the underlying assumptions could significantly affect the estimates.

Cash and cash equivalents

The carrying value reported in the balance sheet for cash and cash equivalents approximates fair value due to the short-term nature of their maturities and are classified as Level 1.

Held-to-maturity investment securities

Held-to-maturity securities currently include mortgage-backed securities and U.S. Treasury securities. The U.S Treasury securities as of June 30, 2018 are valued with prices quoted in active markets. Therefore, they have been categorized as a Level 1 measurement. There were no U.S. Treasury securities held-to-maturity as of December 31, 2017. The mortgage-backed securities are fixed income instruments that are not quoted on an exchange, but may be traded in active markets. The fair value of these securities is based on quoted market prices obtained from external pricing services. The principal market for our securities portfolio is the secondary institutional market, with an exit price that is predominantly reflective of bid level pricing in that market.Accordingly, held-to-maturity mortgage-backed securities are included in the Level 2 fair value category.

Loans held for sale

Loans held for sale are recorded at the lower of cost or fair value in the aggregate. Fair value estimates are based on actual commitments to sell the loans to investors at an agreed upon price or current market prices if rates have changed since the time the loan closed. Accordingly, loans held for sale are included in the Level 2 fair value category.

Loans, net

Fair value estimates are based on loans with similar financial characteristics. Following the adoption of ASU 2016-01 in 2018, the Company updated its process for estimating the fair value of loans, net of allowance for loan losses. The updated process estimates the fair value of loans using the exit price notion, which includes identifying an exit price using current market information for origination rates and making certain adjustments to incorporate credit risk, transaction costs and other adjustments utilizing publicly available rates and indicies. Net loans are included in the Level 3 fair value category based upon the inputs and valuation techniques used. See Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 1: Basis of Presentation and Summary of Significant Accounting Policies” for additional information on ASU 2016-01.

Other financial assets

Other financial assets consist of accrued interest and fees receivable, and stock in the Federal Home Loan Bank of Boston (“FHLB”) and the Federal Reserve Bank (“FRB”), for which the carrying amount approximates fair value, and are classified as Level 2.

Deposits

The fair values reported for transaction accounts (demand, NOW, savings, and money market) equal their respective book values reported on the balance sheet and are classified as Level 2. The fair values disclosed are, by definition, equal to the amount payable on demand at the reporting date. The fair values for certificates of deposit are based on the discounted value of contractual cash flows. The discount rates used are representative of approximate rates currently offered on certificates of deposit with similar remaining maturities and are classified as Level 2.

Securities sold under agreements to repurchase

The fair value of securities sold under agreements to repurchase is estimated based on contractual cash flows discounted at the Bank’s incremental borrowing rate for FHLB borrowings with similar maturities and have been classified as Level 2.

Federal funds purchased

The carrying amounts of federal funds purchased, if any, approximate fair value due to their short-term nature and therefore these funds have been classified as Level 2.

Federal Home Loan Bank borrowings

The fair value reported for FHLB borrowings is estimated based on the discounted value of contractual cash flows. The discount rate used is based on the Bank’s estimated current incremental borrowing rate for FHLB borrowings of similar maturities and therefore these borrowings have been classified as Level 2.

Junior subordinated debentures

The fair value of the junior subordinated debentures issued by Boston Private Capital Trust I and Boston Private Capital Trust II were estimated using Level 3 inputs such as the interest rates on these securities, current rates for similar debt, a consideration for illiquidity of trading in the debt, and regulatory changes that would result in an unfavorable change in the regulatory capital treatment of this type of debt.

Other financial liabilities

Other financial liabilities consists of accrued interest payable for which the carrying amount approximates fair value and is classified as Level 2.

Financial instruments with off-balance sheet risk

The Bank’s commitments to originate loans and for unused lines and outstanding letters of credit are primarily at market interest rates and therefore, the carrying amount approximates fair value.

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Loan Portfolio and Credit Quality

6 Months Ended

Jun. 30, 2018

Loans and Leases Receivable Disclosure [Abstract]

Financing Receivables [Text Block]

Loan Portfolio and Credit Quality

The Bank’s lending activities are conducted principally in the regions of New England, the San Francisco Bay Area, and Southern California. The Bank originates single and multi-family residential loans, commercial real estate loans, commercial and industrial loans, commercial tax-exempt loans, construction and land loans, and home equity and other consumer loans. Most loans are secured by borrowers’ personal or business assets. The ability of the Bank’s single family residential and consumer borrowers to honor their repayment commitments is generally dependent on the level of overall economic conditions within the Bank’s lending areas. Commercial, construction, and land borrowers’ ability to repay is generally dependent upon the health of the economy and real estate values, including, in particular, the performance of the construction sector. Accordingly, the ultimate collectability of a substantial portion of the Bank’s loan portfolio is susceptible to changing conditions in the New England, the San Francisco Bay Area, and Southern California economies and real estate markets.

The following table presents a summary of the loan portfolio based on the portfolio segment as of the dates indicated:

	June 30, 2018		December 31, 2017
	(In thousands)
Commercial and industrial	$	583,193	$	520,992
Commercial tax-exempt	438,882		418,698
Total commercial and industrial	1,022,075		939,690
Commercial real estate	2,504,521		2,440,220
Construction and land	172,024		164,990
Residential	2,808,206		2,682,533
Home equity	91,801		99,958
Consumer and other	168,496		177,637
Total	$	6,767,123	$	6,505,028

The following table presents nonaccrual loans receivable by class of receivable as of the dates indicated:

	June 30, 2018		December 31, 2017
	(In thousands)
Commercial and industrial	$	1,412	$	748
Commercial tax-exempt	—		—
Total commercial and industrial	1,412		748
Commercial real estate	1,838		1,985
Construction and land	—		110
Residential	9,610		8,470
Home equity	2,789		2,840
Consumer and other	2		142
Total	$	15,651	$	14,295

The Bank’s policy is to discontinue the accrual of interest on a loan when the collectability of principal or interest is in doubt. In certain instances, although infrequent, loans that have become 90 days or more past due may remain on accrual status if the value of the collateral securing the loan is sufficient to cover principal and interest and the loan is in the process of collection. There were no loans 90 days or more past due, but still accruing as of both June 30, 2018 and December 31, 2017. The Bank’s policy for returning a loan to accrual status requires the loan to be brought current and for the client to show a history of making timely payments (generally six consecutive months). For troubled debt restructured loans (“TDRs”), a return to accrual status generally requires timely payments for a period of six months in accordance with the restructured loan terms, along with meeting other criteria.

The following tables show the payment status of loans receivable by class of receivable as of the dates indicated:

	June 30, 2018
	Accruing Past Due						Nonaccrual Loans
	30-59 Days Past Due		60-89 Days Past Due		Total Accruing Past Due		Current		30-89 Days Past Due		90 Days or Greater Past Due		Total Non-Accrual Loans		Current Accruing Loans		Total Loans Receivable
	(In thousands)
Commercial and industrial	$	521	$	—	$	521	$	367	$	203	$	842	$	1,412	$	581,260	$	583,193
Commercial tax-exempt	—		—		—		—		—		—		—		438,882		438,882
Commercial real estate	—		—		—		—		—		1,838		1,838		2,502,683		2,504,521
Construction and land	—		—		—		—		—		—		—		172,024		172,024
Residential	—		3,641		3,641		2,603		800		6,207		9,610		2,794,955		2,808,206
Home equity	473		339		812		—		65		2,724		2,789		88,200		91,801
Consumer and other	—		3		3		—		—		2		2		168,491		168,496
Total	$	994	$	3,983	$	4,977	$	2,970	$	1,068	$	11,613	$	15,651	$	6,746,495	$	6,767,123

	December 31, 2017
	Accruing Past Due						Nonaccrual Loans
	30-59 Days Past Due		60-89 Days Past Due		Total Accruing Past Due		Current		30-89 Days Past Due		90 Days or Greater Past Due		Total Non-Accrual Loans		Current Accruing Loans		Total Loans Receivable
	(In thousands)
Commercial and industrial	$	10,903	$	849	$	11,752	$	355	$	—	$	393	$	748	$	508,492	$	520,992
Commercial tax-exempt	—		—		—		—		—		—		—		418,698		418,698
Commercial real estate	4,043		—		4,043		163		—		1,822		1,985		2,434,192		2,440,220
Construction and land	—		—		—		—		—		110		110		164,880		164,990
Residential	7,239		1,635		8,874		805		3,172		4,493		8,470		2,665,189		2,682,533
Home equity	355		—		355		—		71		2,769		2,840		96,763		99,958
Consumer and other	24		—		24		17		125		—		142		177,471		177,637
Total	$	22,564	$	2,484	$	25,048	$	1,340	$	3,368	$	9,587	$	14,295	$	6,465,685	$	6,505,028

Nonaccrual and delinquent loans are affected by many factors, such as economic and business conditions, interest rates, unemployment levels, and real estate collateral values, among others. In periods of prolonged economic decline, borrowers may become more severely affected over time as liquidity levels decline and the borrower’s ability to continue to make payments deteriorates. With respect to real estate collateral values, the declines from the peak, as well as the value of the real estate at the time of origination versus the current value, can impact the level of problem loans. For instance, if the loan to value ratio at the time of renewal has increased due to the decline in the real estate value since origination, the loan may no longer meet the Bank’s underwriting standards and may be considered for classification as a problem loan dependent upon a review of risk factors.

Generally when a collateral dependent loan becomes impaired, an updated appraisal of the collateral, if appropriate, is obtained. If the impaired loan has not been upgraded to a performing status within a reasonable amount of time, the Bank will continue to obtain updated appraisals as deemed necessary, especially during periods of declining property values.

The past due status of a loan is determined in accordance with its contractual repayment terms. All loan types are reported past due when one scheduled payment is due and unpaid for 30 days or more.

Credit Quality Indicators

The Bank uses a risk rating system to monitor the credit quality of its loan portfolio. Loan classifications are assessments made by the Bank of the status of the loans based on the facts and circumstances known to the Bank, including management’s judgment, at the time of assessment. Some or all of these classifications may change in the future if there are unexpected changes in the financial condition of the borrower, including but not limited to, changes resulting from continuing deterioration in general economic conditions on a national basis or in the local markets in which the Bank operates adversely affecting, among other things, real estate values. Such conditions, as well as other factors which adversely affect borrowers’ ability to service or repay loans, typically result in changes in loan default and charge-off rates, and increased provisions for loan losses, which would adversely affect the Company’s financial performance and financial condition. These circumstances are not entirely foreseeable and, as a result, it may not be possible to accurately reflect them in the Company’s analysis of credit risk. Generally, only commercial loans, including commercial real estate, other commercial and industrial loans, commercial tax-exempt loans, and construction and land loans, are given a numerical grade.

A summary of the rating system used by the Bank, repeated here from 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, 2017, follows:

Pass - All loans graded as pass are considered acceptable credit quality by the Bank and are grouped for purposes of calculating the allowance for loan losses. For residential, home equity and consumer loans, the Bank classifies loans as pass unless there is known information such as delinquency or client requests for modifications which, due to financial difficulty, would then generally result in a risk rating such as special mention or more severe depending on the factors.

Special Mention - Loans rated in this category are defined as having potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may, at some future date, result in the deterioration of the repayment prospects for the credit or the Bank’s credit position. These loans are currently protected but have the potential to deteriorate to a substandard rating. For commercial loans, the borrower’s financial performance may be inconsistent or below forecast, creating the possibility of liquidity problems and shrinking debt service coverage. In loans having this rating, the primary source of repayment is still good, but there is increasing reliance on collateral or guarantor support. Collectability of the loan is not yet in jeopardy. In particular, loans in this category are considered more variable than other categories, since they will typically migrate through categories more quickly.

Substandard - Loans rated in this category are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. A substandard credit has a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. Substandard loans may be either still accruing or nonaccruing depending upon the severity of the risk and other factors such as the value of the collateral, if any, and past due status.

Doubtful - Loans rated in this category indicate that collection or liquidation in full on the basis of currently existing facts, conditions, and values, is highly questionable and improbable. Loans in this category are usually on nonaccrual and classified as impaired.

The following tables present the loan portfolio’s credit risk profile by internally assigned grade and class of receivable as of the dates indicated:

	June 30, 2018
	By Loan Grade or Nonaccrual Status
	Pass		Special Mention		Accruing Classified (1)		Nonaccrual Loans		Total
	(In thousands)
Commercial and industrial	$	567,334	$	6,845	$	7,602	$	1,412	$	583,193
Commercial tax-exempt	438,882		—		—		—		438,882
Commercial real estate	2,426,821		46,603		29,259		1,838		2,504,521
Construction and land	164,760		—		7,264		—		172,024
Residential	2,797,270		—		1,326		9,610		2,808,206
Home equity	89,012		—		—		2,789		91,801
Consumer and other	168,492		—		2		2		168,496
Total	$	6,652,571	$	53,448	$	45,453	$	15,651	$	6,767,123

	December 31, 2017
	By Loan Grade or Nonaccrual Status
	Pass		Special Mention		Accruing Classified (1)		Nonaccrual Loans		Total
	(In thousands)
Commercial and industrial	$	496,395	$	12,898	$	10,951	$	748	$	520,992
Commercial tax-exempt	413,139		5,559		—		—		418,698
Commercial real estate	2,346,833		56,947		34,455		1,985		2,440,220
Construction and land	146,514		11,770		6,596		110		164,990
Residential	2,672,714		—		1,349		8,470		2,682,533
Home equity	97,118		—		—		2,840		99,958
Consumer and other	177,494		—		1		142		177,637
Total	$	6,350,207	$	87,174	$	53,352	$	14,295	$	6,505,028

______________________

(1) Accruing Classified includes both Substandard and Doubtful classifications.

The following tables present, by class of receivable, the balance of impaired loans with and without a related allowance, the associated allowance for those impaired loans with a related allowance, and the total unpaid principal on impaired loans:

	As of and for the three and six months ended June 30, 2018
	Recorded Investment (1)		Unpaid Principal Balance		Related Allowance		QTD Average Recorded Investment		YTD Average Recorded Investment		QTD Interest Income Recognized while Impaired		YTD Interest Income Recognized while Impaired
	(In thousands)
With no related allowance recorded:
Commercial and industrial	$	2,015	$	2,954	n/a		$	2,048	$	1,835	$	14	$	22
Commercial tax-exempt	—		—		n/a		—		—		—		—
Commercial real estate	2,932		4,695		n/a		2,939		2,460		25		50
Construction and land	—		—		n/a		82		94		16		16
Residential	10,455		10,815		n/a		10,587		10,009		87		189
Home equity	—		—		n/a		1,311		1,509		15		24
Consumer and other	—		—		n/a		—		—		—		—
Subtotal	15,402		18,464		n/a		16,967		15,907		157		301
With an allowance recorded:
Commercial and industrial	303		403		$	134	76		147		—		2
Commercial tax-exempt	—		—		—		—		—		—		—
Commercial real estate	5,426		5,855		187		5,467		6,055		72		228
Construction and land	—		—		—		—		—		—		—
Residential	816		816		82		818		821		6		12
Home equity	1,769		1,769		597		469		284		—		—
Consumer and other	—		—		—		—		18		—		3
Subtotal	8,314		8,843		1,000		6,830		7,325		78		245
Total:
Commercial and industrial	2,318		3,357		134		2,124		1,982		14		24
Commercial tax-exempt	—		—		—		—		—		—		—
Commercial real estate	8,358		10,550		187		8,406		8,515		97		278
Construction and land	—		—		—		82		94		16		16
Residential	11,271		11,631		82		11,405		10,830		93		201
Home equity	1,769		1,769		597		1,780		1,793		15		24
Consumer and other	—		—		—		—		18		—		3
Total	$	23,716	$	27,307	$	1,000	$	23,797	$	23,232	$	235	$	546

_____________________

(1) Recorded investment represents the client loan balance net of historical charge-offs and historical nonaccrual interest paid, if applicable, which was applied to principal.

	As of and for the three and six months ended June 30, 2017
	Recorded Investment (1)		Unpaid Principal Balance		Related Allowance		QTD Average Recorded Investment		YTD Average Recorded Investment		QTD Interest Income Recognized while Impaired		YTD Interest Income Recognized while Impaired
	(In thousands)
With no related allowance recorded:
Commercial and industrial	$	1,771	$	2,377	n/a		$	1,667	$	1,703	$	12	$	25
Commercial tax-exempt	—		—		n/a		1,084		1,859		80		80
Commercial real estate	2,879		6,429		n/a		3,358		3,824		724		970
Construction and land	232		568		n/a		190		181		—		—
Residential	9,600		9,971		n/a		9,561		8,958		78		179
Home equity	—		—		n/a		—		—		—		—
Consumer and other	—		—		n/a		—		—		—		—
Subtotal	14,482		19,345		n/a		15,860		16,525		894		1,254
With an allowance recorded:
Commercial and industrial	—		—		$	—	—		—		—		—
Commercial tax-exempt	—		—		—		—		—		—		—
Commercial real estate	6,996		7,425		453		7,011		7,042		96		171
Construction and land	—		—		—		—		—		—		—
Residential	2,503		2,503		507		2,613		3,312		23		62
Home equity	36		36		21		37		37		—		—
Consumer and other	—		—		—		—		—		—		—
Subtotal	9,535		9,964		981		9,661		10,391		119		233
Total:
Commercial and industrial	1,771		2,377		—		1,667		1,703		12		25
Commercial tax-exempt	—		—		—		1,084		1,859		80		80
Commercial real estate	9,875		13,854		453		10,369		10,866		820		1,141
Construction and land	232		568		—		190		181		—		—
Residential	12,103		12,474		507		12,174		12,270		101		241
Home equity	36		36		21		37		37		—		—
Consumer and other	—		—		—		—		—		—		—
Total	$	24,017	$	29,309	$	981	$	25,521	$	26,916	$	1,013	$	1,487

_____________________

(1) Recorded investment represents the client loan balance net of historical charge-offs and historical nonaccrual interest paid, if applicable, which was applied to principal.

	As of and for the year ended December 31, 2017
	Recorded Investment (1)		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized while Impaired
	(In thousands)
With no related allowance recorded:
Commercial and industrial	$	1,434	$	2,238	n/a		$	1,594	$	50
Commercial tax-exempt	—		—		n/a		1,001		80
Commercial real estate	1,832		3,453		n/a		3,098		1,546
Construction and land	109		109		n/a		172		—
Residential	9,337		9,709		n/a		9,033		360
Home equity	1,779		1,779		n/a		413		—
Consumer and other	—		—		n/a		—		—
Subtotal	14,491		17,288		n/a		15,311		2,036
With an allowance recorded:
Commercial and industrial	242		242		$	58	156		4
Commercial tax-exempt	—		—		—		—		—
Commercial real estate	6,855		7,284		362		6,980		322
Construction and land	—		—		—		—		—
Residential	828		828		89		2,469		89
Home equity	36		36		20		36		1
Consumer and other	125		250		125		10		—
Subtotal	8,086		8,640		654		9,651		416
Total:
Commercial and industrial	1,676		2,480		58		1,750		54
Commercial tax-exempt	—		—		—		1,001		80
Commercial real estate	8,687		10,737		362		10,078		1,868
Construction and land	109		109		—		172		—
Residential	10,165		10,537		89		11,502		449
Home equity	1,815		1,815		20		449		1
Consumer and other	125		250		125		10		—
Total	$	22,577	$	25,928	$	654	$	24,962	$	2,452

_____________________

(1) Recorded investment represents the client loan balance net of historical charge-offs and historical nonaccrual interest paid, if applicable, which was applied to principal.

When management determines that it is probable that the Bank will not collect all principal and interest on a loan in accordance with the original loan terms, the loan is designated as impaired.

Loans that are designated as impaired require an analysis to determine the amount of impairment, if any. Impairment would be indicated as a result of the carrying value of the loan exceeding the estimated collateral value, less costs to sell, for collateral dependent loans or the net present value of the projected cash flow, discounted at the loan’s contractual effective interest rate, for loans not considered to be collateral dependent. Generally, shortfalls in the analysis on collateral dependent loans would result in the impairment amount being charged-off to the allowance for loan losses. Shortfalls on cash flow dependent loans may be carried as specific allocations to the general reserve unless a known loss is determined to have occurred, in which case such known loss is charged-off.

Loans in the held for sale category are carried at the lower of amortized cost or estimated fair value in the aggregate and are excluded from the allowance for loan losses analysis.

The Bank may, under certain circumstances, restructure loans as a concession to borrowers who are experiencing financial difficulty. Such loans are classified as TDRs and are included in impaired loans. TDRs typically result from the Bank’s loss mitigation activities which, among other things, could include rate reductions, payment extensions, and/or principal forgiveness. As of June 30, 2018 and December 31, 2017, TDRs totaled $12.9 million and $13.6 million, respectively. As of June 30, 2018, $10.7 million of the $12.9 million in TDRs were on accrual status. As of December 31, 2017, $11.1 million of the $13.6 million in TDRs were on accrual status.

Since all TDR loans are considered impaired loans, they are individually evaluated for impairment. The resulting impairment, if any, would have an impact on the allowance for loan losses as a specific reserve or charge-off. If, prior to the classification as a TDR, the loan was not impaired, there would have been a general or allocated reserve on the particular loan. Therefore, depending upon the result of the impairment analysis, there could be an increase or decrease in the related allowance for loan losses. Many loans initially categorized as TDRs are already on nonaccrual status and are already considered impaired. Therefore, there is generally not a material change to the allowance for loan losses when a nonaccruing loan is categorized as a TDR.

	As of and for the three and six months ended June 30, 2018
	Restructured Current Quarter					TDRs that defaulted in the Current Quarter that were restructured in prior twelve months
	# of Loans	Pre- modification recorded investment		Post- modification recorded investment		# of Loans	Post- modification recorded investment
	(Dollars in thousands)
Commercial and industrial (1)	1	$	100	$	100	—	$	—
Commercial real estate	—	—		—		—	—
Construction and land	—	—		—		—	—
Residential	—	—		—		—	—
Home equity	—	—		—		—	—
Consumer and other	—	—		—		—	—
Total	1	$	100	$	100	—	$	—

______________________

(1)    Represents the following type of concession: extension of term.

There were no TDR loans that were restructured or defaulted during the three and six months ended June 30, 2017.

Loan participations serviced for others and loans serviced for others are not included in the Company’s total loans. The following table presents a summary of the loan participations serviced for others and loans serviced for others based on class of receivable as of the dates indicated:

	June 30, 2018		December 31, 2017
	(In thousands)
Commercial and industrial	$	8,313	$	8,484
Commercial tax-exempt	19,464		19,805
Commercial real estate	49,200		49,783
Construction and land	32,229		37,840
Total loan participations serviced for others	$	109,206	$	115,912
Residential	$	38,217	$	41,440
Total loans serviced for others	$	38,217	$	41,440

Total loans include deferred loan origination (fees)/ costs, net, of $7.8 million and $6.9 million as of June 30, 2018 and December 31, 2017, respectively.

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Allowance for Loan Losses

6 Months Ended

Jun. 30, 2018

Allowance for Loan Losses [Abstract]

Allowance for Credit Losses [Text Block]

Allowance for Loan Losses

The allowance for loan losses is reported as a reduction of outstanding loan balances, and totaled $73.5 million and $74.7 million at June 30, 2018 and December 31, 2017, respectively.

The following tables present a summary of the changes in the allowance for loan losses for the periods indicated:

	As of and for the three months ended June 30,						As of and for the six months ended June 30,
	2018			2017			2018			2017
	(In thousands)
Allowance for loan losses, beginning of period:
Commercial and industrial	$	11,443		$	12,291		$	11,735		$	12,751
Commercial real estate	46,116			51,164			46,820			50,412
Construction and land	4,533			3,197			4,949			3,039
Residential	9,896			10,090			9,773			10,449
Home equity	784			987			835			1,035
Consumer and other	126			302			630			391
Total allowance for loan losses, beginning of period	72,898			78,031			74,742			78,077
Loans charged-off:
Commercial and industrial	(125		)	(218		)	(339		)	(218		)
Commercial real estate	—			—			(135		)	—
Construction and land	—			—			—			—
Residential	—			—			(16		)	(58		)
Home equity	—			—			—			—
Consumer and other	(15		)	(245		)	(39		)	(245		)
Total charge-offs	(140		)	(463		)	(529		)	(521		)
Recoveries on loans previously charged-off:
Commercial and industrial	152			67			234			154
Commercial real estate	50			3,479			175			3,529
Construction and land	—			—			—			—
Residential	27			—			27			47
Home equity	—			—			1			—
Consumer and other	24			9			156			18
Total recoveries	253			3,555			593			3,748
Provision/ (credit) for loan losses:
Commercial and industrial	911			(468		)	751			(1,015		)
Commercial real estate	(983		)	(6,507		)	(1,677		)	(5,805		)
Construction and land	80			388			(336		)	546
Residential	(119		)	192			20			(156		)
Home equity	552			(58		)	500			(106		)
Consumer and other	12			339			(600		)	241
Total provision/(credit) for loan losses	453			(6,114		)	(1,342		)	(6,295		)

	As of and for the three months ended June 30,				As of and for the six months ended June 30,
	2018		2017		2018		2017
	(In thousands)
Allowance for loan losses at end of period:
Commercial and industrial	12,381		11,672		12,381		11,672
Commercial real estate	45,183		48,136		45,183		48,136
Construction and land	4,613		3,585		4,613		3,585
Residential	9,804		10,282		9,804		10,282
Home equity	1,336		929		1,336		929
Consumer and other	147		405		147		405
Total allowance for loan losses at end of period	$	73,464	$	75,009	$	73,464	$	75,009

The allowance for loan losses is an estimate of the inherent risk of loss in the loan portfolio as of the consolidated balance sheet dates. Management estimates the level of the allowance based on all relevant information available. Changes to the required level in the allowance result in either a provision for loan loss expense, if an increase is required, or a credit to the provision, if a decrease is required. Loan losses are charged to the allowance when available information confirms that specific loans, or portions thereof, are uncollectible. Recoveries on loans previously charged-off are credited to the allowance when received in cash.

The provision/ (credit) for loan losses and related balance in the allowance for loan losses for tax-exempt commercial and industrial loans are included with commercial and industrial. The provision/ (credit) for loan losses and related balance in the allowance for loan losses for tax-exempt commercial real estate loans are included with commercial real estate. There were no charge-offs or recoveries, for any period presented, for both commercial and industrial and commercial real estate tax-exempt loans.

The following tables present the Company’s allowance for loan losses and loan portfolio at June 30, 2018 and December 31, 2017 by portfolio segment, disaggregated by method of impairment analysis. The Company had no loans acquired with deteriorated credit quality at June 30, 2018 or December 31, 2017.

	June 30, 2018
	Individually Evaluated for Impairment				Collectively Evaluated for Impairment				Total
	Recorded investment (loan balance)		Allowance for loan losses		Recorded investment (loan balance)		Allowance for loan losses		Recorded investment (loan balance)		Allowance for loan losses
	(In thousands)
Commercial and industrial	$	2,318	$	134	$	1,019,757	$	12,247	$	1,022,075	$	12,381
Commercial real estate	8,358		187		2,496,163		44,996		2,504,521		45,183
Construction and land	—		—		172,024		4,613		172,024		4,613
Residential	11,271		82		2,796,935		9,722		2,808,206		9,804
Home equity	1,769		597		90,032		739		91,801		1,336
Consumer and other	—		—		168,496		147		168,496		147
Total	$	23,716	$	1,000	$	6,743,407	$	72,464	$	6,767,123	$	73,464

	December 31, 2017
	Individually Evaluated for Impairment				Collectively Evaluated for Impairment				Total
	Recorded investment (loan balance)		Allowance for loan losses		Recorded investment (loan balance)		Allowance for loan losses		Recorded investment (loan balance)		Allowance for loan losses
	(In thousands)
Commercial and industrial	$	1,676	$	58	$	938,014	$	11,677	$	939,690	$	11,735
Commercial real estate	8,687		362		2,431,533		46,458		2,440,220		46,820
Construction and land	109		—		164,881		4,949		164,990		4,949
Residential	10,165		89		2,672,368		9,684		2,682,533		9,773
Home equity	1,815		20		98,143		815		99,958		835
Consumer and other	125		125		177,512		505		177,637		630
Total	$	22,577	$	654	$	6,482,451	$	74,088	$	6,505,028	$	74,742

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Derivatives and Hedging Activities

6 Months Ended

Jun. 30, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities Disclosure [Text Block]

Derivatives and Hedging Activities

The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of its assets and liabilities and, to a lesser extent, the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are generally determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to certain loans, deposits, and borrowings. As a service to its customers, the Company may utilize

derivative instruments including customer foreign exchange forward contracts to manage its foreign exchange risk, if any.

The following table presents the fair value of the Company’s derivative financial instruments as well as their classification on the consolidated balance sheets as of June 30, 2018 and December 31, 2017:

	June 30, 2018							December 31, 2017
	Asset derivatives			Liability derivatives				Asset derivatives			Liability derivatives
	Balance sheet location	Fair value (1)		Balance sheet location	Fair value (1)			Balance sheet location	Fair value (1)		Balance sheet location	Fair value (1)
	(In thousands)
Derivatives designated as hedging instruments:
Interest rate products	Other assets	$	1,197	Other liabilities	$	—		Other assets	$	555	Other liabilities	$	(80	)
Derivatives not designated as hedging instruments:
Interest rate products	Other assets	26,865		Other liabilities	(27,290		)	Other assets	18,575		Other liabilities	(18,953		)
Foreign exchange contracts	Other assets	1		Other liabilities	(1		)	Other assets	2		Other liabilities	(2		)
Risk participation agreements	Other assets	24		Other liabilities	(113		)	Other assets	1		Other liabilities	(108		)
Total		$	28,087		$	(27,404	)		$	19,133		$	(19,143	)

_____________________

(1) For additional details, see Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 5: Fair Value Measurements.”

The following tables present the effect of the Company’s derivative financial instruments on accumulated other comprehensive income for the three and six months ended June 30, 2018 and 2017:

Derivatives in cash flow hedging relationships	Amount of gain or (loss) recognized in OCI on derivatives (1)					Location of (gain) or loss reclassified from accumulated OCI into income	Amount of (gain) or loss reclassified from accumulated OCI into income
	Three months ended June 30,						Three months ended June 30,
	2018		2017				2018			2017
	(In thousands)						(In thousands)
Interest rate products	$	175	$	(425	)	Interest expense	$	(263	)	$	357
Total	$	175	$	(425	)		$	(263	)	$	357

____________________

(1) There was an additional $2 thousand gain related to the ineffective portion for the three months ended as of June 30, 2017.

Derivatives in cash flow hedging relationships	Amount of gain or (loss) recognized in OCI on derivatives (1)					Location of (gain) or loss reclassified from accumulated OCI into income	Amount of (gain) or loss reclassified from accumulated OCI into income
	Six months ended June 30,						Six months ended June 30,
	2018		2017				2018			2017
	(In thousands)						(In thousands)
Interest rate products	$	1,011	$	(358	)	Interest expense	$	(284	)	$	660
Total	$	1,011	$	(358	)		$	(284	)	$	660

____________________

(1) There was an additional $(2) thousand loss related to the ineffective portion for the six months ended as of June 30, 2017. The guidance in ASU 2017-12 requires that amounts in accumulated other comprehensive income that are included in the assessment of effectiveness should be reclassified into earnings in the same period in which the hedged forecasted transactions impact earnings. Transition guidance for this ASU further states that upon adoption, previously recorded cumulative ineffectiveness for cash flow hedges existing at the adoption date be eliminated by means of a cumulative-effect adjustment to accumulated other comprehensive income with a corresponding adjustment to the opening balance of retained earnings as of the initial application date. There was a $5 thousand reclassification related to the adoption of ASU 2017-12 effective January 1, 2018.

The following table presents the effect of the Company’s derivative financial instruments in the consolidated statements of operations for the three and six months ended June 30, 2018 and 2017:

	Location of (gain) or loss reclassified from accumulated OCI into income	Amount of (gain) or loss recognized in income on cash flow hedging relationships				Amount of (gain) or loss recognized in income on cash flow hedging relationships
		Three months ended June 30,				Six months ended June 30,
		2018			2017	2018			2017
		(In thousands)
Total amounts of (income) and expense line items presented in the statement of operations in which the effects of fair value or cash flow hedges are recorded	Interest expense	$	(263	)	n/a	$	(284	)	n/a
The effects of cash flow hedging:
(Gain) or loss on cash flow hedging relationships in ASC 815 Derivatives and Hedging, Subtopic 20 Hedging - general
Interest contracts - amount of (gain) or loss reclassified from accumulated other comprehensive income into income	Interest expense	$	(263	)	n/a	$	(284	)	n/a

The Bank has agreements with its derivative counterparties that contain provisions where, if the Bank defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Bank could also be declared in default on its derivative obligations. The Bank was in compliance with these provisions as of June 30, 2018 and December 31, 2017.

The Bank also has agreements with certain of its derivative counterparties that contain provisions where, if the Bank fails to maintain its status as a well- or adequately-capitalized institution, then the counterparty could terminate the derivative positions and the Bank would be required to settle its obligations under the agreements. The Bank was in compliance with these provisions as of June 30, 2018 and December 31, 2017.

Certain of the Bank’s agreements with its derivative counterparties contain provisions where, if specified, events or conditions occur that materially change the Bank’s creditworthiness in an adverse manner, the Bank may be required to fully collateralize its obligations under the derivative instruments. The Bank was in compliance with these provisions as of June 30, 2018 and December 31, 2017.

As of June 30, 2018 there were no termination amounts related to collateral determinations of derivatives in a liability position and as of December 31, 2017, the termination amount was $3.1 million. The Company has minimum collateral posting thresholds with its derivative counterparties and pledged securities with market values of $1.1 million and $2.3 million, respectively, as of June 30, 2018 and December 31, 2017, against its obligations under these agreements. The collateral posted is typically greater than the current liability position; however, due to timing of liability position changes at period end, the funding of a collateral shortfall may take place shortly following period end.

Cash Flow Hedges of Interest Rate Risk

The Company’s objectives in using interest rate derivatives are to add stability to interest income and expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company has entered into interest rate swaps as part of its interest rate risk management strategy.  These interest rate swaps are designated as cash flow hedges and involve the receipt of variable rate amounts from a counterparty in exchange for the Company making fixed payments.  The Company has entered into interest rate swaps to hedge London Interbank Offered Rate (“LIBOR”) -indexed brokered deposits and the LIBOR component of the total cost of certain FHLB borrowings.

To accomplish this objective and strategy, the Bank has entered into a total of six interest rate swaps, two during 2017 with effective dates of March 22, 2017 and four during 2013 with effective dates of September 2, 2014, June 1, 2014, March 1, 2014, and August 1, 2013.

The two interest rate swaps entered into during 2017 have notional amounts of $40 million and $60 million with terms of 1.75 and 2.25 years, respectively. These interest rate swaps will effectively fix the Bank’s interest payments on $100 million in interest-related cash outflows attributable to changes in the LIBOR component of FHLB borrowing liabilities at rates of 1.55% and 1.65%, respectively, with a weighted average rate of 1.61%. The borrowings hedged will initially be expected to be issuances and quarterly rollovers of three-month FHLB advances but may also then include future issuances of three-month repurchase agreements with similar characteristics and/or future issuances of either floating or fixed rate borrowings that are issued with the specific intent to replace the quarterly rollovers of the advances or repurchase agreements.

The four interest rate swaps entered into during 2013 each have a notional amount of $25 million and have terms ranging from four to six years from their respective effective dates. The interest rate swaps effectively fix the Bank’s interest payments on $100 million of its LIBOR-indexed deposit liabilities at rates between 1.68% and 2.32%, with a weighted average rate of 1.95%.

Prior to the implementation of ASU 2017-12, which was implemented on a modified retrospective basis on January 1, 2018, the Company used the “Hypothetical Derivative Method” described in ASC 815, Derivatives and Hedging (“ASC 815”), for quarterly prospective and retrospective assessments of hedge effectiveness, as well as for measurements of hedge ineffectiveness. Under this method, the Company assessed the effectiveness of each hedging relationship by comparing the changes in cash flows of the derivative hedging instrument with the changes in cash flows of the designated hedged transactions. The effective portion of changes in the fair value of the derivative was initially reported in other comprehensive income (“OCI”) (outside of earnings) and subsequently reclassified to earnings in interest and dividend income when the hedged transactions affect earnings. Ineffectiveness resulting from the hedge was recorded as a gain or loss in the consolidated statement of operations as part of fees and other income.

Upon implementation of ASU 2017-12, for derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in accumulated other comprehensive income and subsequently reclassified into interest expense in the same period during which the hedged transaction affects earnings. A portion of the balance reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made or received on the Company’s interest rate swaps. During the next twelve months, the Company estimates that $1.2 million will be reclassified as a decrease in interest expense. The Company monitors the risk of counterparty default on an ongoing basis.

Non-designated Hedges

Derivatives not designated as hedges are not speculative and result from different services the Bank provides to qualified commercial clients. The Bank offers certain derivative products directly to such clients. The Bank economically hedges derivative transactions executed with commercial clients by entering into mirror-image, offsetting derivatives with third parties. Derivative transactions executed as part of these programs are not designated in ASC 815-qualifying hedging relationships and are, therefore, marked-to-market through earnings each period. Because the derivatives have mirror-image contractual terms, the changes in fair value substantially offset through earnings. The net effect on earnings is primarily driven by changes in the credit valuation adjustment (“CVA”). The CVA represents the dollar amount of fair value adjustment related to nonperformance risk of both the Bank and its counterparties. Fees earned in connection with the execution of derivatives related to this program are recognized in the consolidated statement of operations in other income. As of June 30, 2018 and December 31, 2017, the Bank had 156 and 142 derivatives, respectively, related to this program, comprised of interest rate swaps and caps, with an aggregate notional amount of $1.2 billion as of June 30, 2018 and $1.1 billion as of December 31, 2017. As of June 30, 2018, there were eleven foreign currency exchange contracts with an aggregate notional amount of $0.7 million outstanding related to this program, and as of December 31, 2017, there were three foreign currency exchange contracts with an aggregate notional amount of $0.2 million.

In addition, as a participant lender, the Bank has guaranteed performance on the pro-rated portion of swaps executed by other financial institutions. As the participant lender, the Bank is providing a partial guarantee, but is not a direct party to the related swap transactions. The Bank has no obligations under the risk participation agreements unless the borrower defaults on their swap transaction with the lead bank and the swap is in a liability position to the borrower. In that instance, the Bank has agreed to pay the lead bank a portion of the swap’s termination value at the time of the default. The derivative transactions entered into as part of these agreements are not designated, as per ASC 815, as qualifying hedging relationships and are, therefore, marked-to-market through earnings each period. As of June 30, 2018, there were seven of these risk participation transactions with an aggregate notional amount of $60.2 million and, as of December 31, 2017, there were six of these risk participation transactions with an aggregate notional amount of $48.0 million.

The Bank has also participated out to other financial institutions a pro-rated portion of swaps executed by the Bank. The other financial institution has no obligations under the risk participation agreements unless the borrowers default on their swap transactions with the Bank and the swaps are in liability positions to the borrower. In those instances, the other financial institution has agreed to pay the Bank a portion of the swap’s termination value at the time of the default. The derivative transactions entered into as part of these agreements are not designated, as per ASC 815, as qualifying hedging relationships and are, therefore, marked-to-market through earnings each period. As of June 30, 2018, there were three of these risk participation transactions with a pro-rated notional amount of $11.5 million and, as of December 31, 2017, there were two of these risk participation transactions with a pro-rated notional amount of $6.1 million.

The following table presents the effect of the Bank’s derivative financial instruments not designated as hedging instruments in the consolidated statement of operations for the three and six months ended June 30, 2018 and 2017.

		Amount of gain or (loss), net, recognized in income on derivatives
Derivatives not designated as hedging instruments	Location of gain or (loss) recognized in income on derivatives	Three months ended June 30,						Six months ended June 30,
		2018			2017			2018			2017
		(In thousands)
Interest rate products	Other income/ (expense)	$	(139	)	$	(324	)	$	(47	)	$	(646	)
Risk participation agreements	Other income/ (expense)	47			320			213			320
Total		$	(92	)	$	(4	)	$	166		$	(326	)

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Income Taxes

6 Months Ended

Jun. 30, 2018

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

Income Taxes

The following table presents the components of income tax expense for continuing operations, discontinued operations, noncontrolling interests and the Company:

	Six months ended June 30,
	2018			2017
	(In thousands)
Income from continuing operations:
Income before income taxes	$	52,867		$	55,005
Income tax expense	23,425			16,516
Net income from continuing operations	$	29,442		$	38,489
Effective tax rate, continuing operations	44.3		%	30.0		%
Income from discontinued operations:
Income before income taxes	$	2,388		$	4,606
Income tax expense	692			1,911
Net income from discontinued operations	$	1,696		$	2,695
Effective tax rate, discontinued operations	29.0		%	41.5		%
Less: Income attributable to noncontrolling interests:
Income before income taxes	$	2,018		$	2,116
Income tax expense	—			—
Net income attributable to noncontrolling interests	$	2,018		$	2,116
Effective tax rate, noncontrolling interests	—		%	—		%
Income attributable to the Company
Income before income taxes	$	53,237		$	57,495
Income tax expense	24,117			18,427
Net income attributable to the Company	$	29,120		$	39,068
Effective tax rate attributable to the Company	45.3		%	32.0		%

The effective tax rate for continuing operations for the six months ended June 30, 2018 of 44.3%, with related tax expense of $23.4 million, was calculated based on a projected 2018 annual effective tax rate. The effective tax rate was more than the statutory rate of 21% due primarily to the sale of Anchor and state and local income taxes. These items were partially offset by earnings from tax-exempt investments and income tax credits. The Company recorded tax expense of $12.7 million on the sale of Anchor in April 2018, which was primarily due to a book to tax basis difference associated with nondeductible goodwill.

The effective tax rate for continuing operations for the six months ended June 30, 2017 of 30.0%, with related tax expense of $16.5 million, was calculated based on a projected 2017 annual effective tax rate. The effective tax rate was less than the statutory rate of 35% due primarily to earnings from tax-exempt investments, income tax credits, and income attributable to noncontrolling interests. These items were partially offset by state and local income taxes.

The effective tax rate for continuing operations for the six months ended June 30, 2018 is more than the effective tax rate for the same period in 2017 due primarily to the sale of Anchor. This item is partially offset by the reduction in the federal corporate tax rate from 35% to 21% as a result of the Tax Cuts and Jobs Act (the “Tax Act”) that was enacted on December 22, 2017.

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Noncontrolling Interests

6 Months Ended

Jun. 30, 2018

Noncontrolling Interest [Abstract]

Noncontrolling Interest Disclosure [Text Block]

Noncontrolling Interests

At the Company, noncontrolling interests consist of equity owned by management of the Company’s respective majority-owned affiliates. Net income attributable to noncontrolling interests in the consolidated statements of operations represents the net income allocated to the noncontrolling interest owners of the affiliates. Net income allocated to the noncontrolling interest owners was $1.0 million and $1.2 million for the three-month periods ended June 30, 2018 and 2017, respectively, and $2.0 million and $2.1 million for the six-month periods ended June 30, 2018 and 2017, respectively.

On the consolidated balance sheets, noncontrolling interests are included as the sum of the capital and undistributed profits allocated to the noncontrolling interest owners. Typically, this balance is included in a company’s permanent shareholders’ equity in the consolidated balance sheets. When the noncontrolling interest owners’ rights include certain redemption features, as described in ASC 480, Distinguishing Liabilities from Equity, such redeemable noncontrolling interests are classified as mezzanine equity and are not included in permanent shareholders’ equity. Due to the redemption features of the noncontrolling interests, the Company had redeemable noncontrolling interests held in mezzanine equity in the accompanying consolidated balance sheets of $10.7 million and $17.5 million at June 30, 2018 and December 31, 2017, respectively. The aggregate amount of such redeemable noncontrolling equity interests are recorded at the estimated maximum redemption values. In addition, the Company had $2.0 million and $5.2 million in noncontrolling interests included in permanent shareholder’s equity at June 30, 2018 and December 31, 2017, respectively.

Each non-wholly owned affiliate operating agreement provides the Company and/or the noncontrolling interests with contingent call or put redemption features used for the orderly transfer of noncontrolling equity interests between the affiliate noncontrolling interest owners and the Company at either a contractually predetermined fair value; multiple of earnings before interest, taxes, depreciation, and amortization (EBITDA); or fair value. The Company may liquidate these noncontrolling interests in cash, shares of the Company’s common stock, or other forms of consideration dependent on the operating agreement. These agreements are discussed in Part II. Item 8. “Financial Statements and Supplementary Data - Note 14: Noncontrolling Interests” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.

Generally, these put and call redemption features refer to shareholder rights of both the Company and the noncontrolling interest owners of the Company’s majority-owned affiliate companies. The affiliate company noncontrolling interests generally take the form of limited liability company (LLC) units, profits interests, or common stock (collectively, the “noncontrolling equity interests”). In most circumstances, the put and call redemption features generally relate to the Company’s right and, in some cases, obligation to purchase and the noncontrolling equity interests’ right to sell their equity interests. There are various events that could cause the puts or calls to be exercised, such as a change in control, death, disability, retirement, resignation or termination. The puts and calls are generally to be exercised at the then fair value or a contractually agreed upon approximation thereof. The terms of these rights vary and are governed by the respective individual operating and legal documents.

The following table presents, by affiliate, the noncontrolling interests included as redeemable noncontrolling interests and noncontrolling interests in mezzanine and permanent equity, respectively, at the periods indicated:

	June 30, 2018		December 31, 2017
	(In thousands)
Anchor (1)	$	—	$	9,761
BOS	8,352		8,057
DGHM (2)	4,391		4,829
Total	$	12,743	$	22,647
Redeemable noncontrolling interests	$	10,747	$	17,461
Noncontrolling interests	$	1,996	$	5,186

_____________________

(1) Assets and liabilities at Anchor were classified as held for sale on the Company’s consolidated balance sheets at December 31, 2017. The Company completed the sale of Anchor in April 2018.

(2)    Only includes redeemable noncontrolling interests.

The following tables present a rollforward of the Company’s redeemable noncontrolling interests and noncontrolling interests for the periods indicated:

	Three months ended						Six months ended
	June 30, 2018						June 30, 2018
	Redeemable noncontrolling interests			Noncontrolling interests			Redeemable noncontrolling interests			Noncontrolling interests
	(In thousands)
Noncontrolling interests at beginning of period	$	16,322		$	4,825		$	17,461		$	5,186
Net income attributable to noncontrolling interests	732			236			1,491			527
Distributions	(712		)	(227		)	(1,449		)	(509		)
Purchases/ (sales) of ownership interests	(6,520		)	(3,051		)	(6,353		)	(3,051		)
Amortization of equity compensation	126			—			248			161
Adjustments to fair value	799			213			(651		)	(318		)
Noncontrolling interests at end of period	$	10,747		$	1,996		$	10,747		$	1,996

	Three months ended						Six months ended
	June 30, 2017						June 30, 2017
	Redeemable noncontrolling interests			Noncontrolling interests			Redeemable noncontrolling interests			Noncontrolling interests
	(In thousands)
Noncontrolling interests at beginning of period	$	17,232		$	3,993		$	16,972		$	4,161
Net income attributable to noncontrolling interests	859			291			1,583			533
Distributions	(842		)	(284		)	(1,545		)	(519		)
Purchases/ (sales) of ownership interests	66			—			132			—
Amortization of equity compensation	102			250			204			506
Adjustments to fair value	(201		)	125			(130		)	(306		)
Noncontrolling interests at end of period	$	17,216		$	4,375		$	17,216		$	4,375

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Accumulated Other Comprehensive Income (Notes)

6 Months Ended

Jun. 30, 2018

Accumulated Other Comprehensive Income [Abstract]

Comprehensive Income (Loss) Note [Text Block]

Accumulated Other Comprehensive Income

The following table presents a summary of the amounts reclassified from accumulated other comprehensive income/ (loss) for the three and six months ended June 30, 2018 and 2017:

Description of component of accumulated other comprehensive income/ (loss)	Three months ended June 30,						Six months ended June 30,						Affected line item in Statement of Operations
	2018			2017			2018			2017
	(In thousands)						(In thousands)
Adjustment for realized (gains)/ losses on available-for-sale securities, net:
Pre-tax	$	—		$	(237	)	$	—		$	(256	)	(Gain)/ loss on sale of investments, net
Tax expense/ (benefit)	—			96			—			104			Income tax expense/ (benefit)
Net	$	—		$	(141	)	$	—		$	(152	)	Net (income)/ loss attributable to the Company
Net realized (gain)/ loss on cash flow hedges:
Hedges related to deposits and borrowings:
Pre-tax	$	(263	)	$	357		$	(284	)	$	660		Interest (income)/ expense on deposits and borrowings
Pre-tax	—			(2		)	—			1			Other (income)/ expense
Tax expense/ (benefit)	76			(149		)	83			(275		)	Income tax expense/ (benefit)
Net	$	(187	)	$	206		$	(201	)	$	386		Net (income)/ loss attributable to the Company
Total reclassifications for the period, net of tax	$	(187	)	$	65		$	(201	)	$	234

On January 1, 2018, the Company elected to early adopt ASU No. 2017-12. As a result, the Company reclassified unrealized losses on cash flow hedges of $5 thousand from accumulated other comprehensive income/ (loss) to beginning retained earnings.

On January 1, 2018, the Company adopted ASU No. 2016-01. As a result, the Company reclassified unrealized gains on equity securities available-for-sale, net of tax, of $339 thousand from accumulated other comprehensive income/ (loss) to beginning retained earnings.

	Components of accumulated other comprehensive income/ (loss)
	Unrealized gain/ (loss) on securities available-for-sale			Unrealized gain/ (loss) on cash flow hedges			Unrealized gain/ (loss) on other			Accumulated other comprehensive income/ (loss)
	(In thousands)
Balance at December 31, 2016	$	(11,194	)	$	(605	)	$	(749	)	$	(12,548	)
Other comprehensive income/ (loss) before reclassifications	6,474			(210		)	12			6,276
Amounts reclassified from other comprehensive income/ (loss)	(152		)	386			—			234
Other comprehensive income/ (loss), net	6,322			176			12			6,510
Balance at June 30, 2017	$	(4,872	)	$	(429	)	$	(737	)	$	(6,038	)
Balance at December 31, 2017	$	(8,140	)	$	332		$	(850	)	$	(8,658	)
Other comprehensive income/ (loss) before reclassifications	(14,848		)	712			1			(14,135		)
Amounts reclassified from other comprehensive income/ (loss)	—			(201		)	—			(201		)
Other comprehensive income/ (loss), net	(14,848		)	511			1			(14,336		)
Reclassification due to the adoption of ASUs 2017-12 and 2016-01	(339		)	5			—			(334		)
Balance at June 30, 2018	$	(23,327	)	$	848		$	(849	)	$	(23,328	)

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Restructuring

6 Months Ended

Jun. 30, 2018

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure [Text Block]

Restructuring

In the fourth quarter of 2014, the Company incurred restructuring charges related to the acquisition of Banyan Partners, LLC. The purpose of this restructuring was to realign the management structure within the Wealth Management and Trust segment. The total cost of the restructuring incurred in Q4 2014 was $0.7 million. In 2015, the Company incurred additional restructuring charges to further refine the management structure within the Wealth Management and Trust segment. The total cost of the restructuring charges in 2015 was $3.7 million.

In the first and second quarters of 2016, the Company incurred additional costs of $1.1 million and $0.9 million, respectively, in continued refinement of the management structure within the Wealth Management and Trust segment. The Company does not anticipate any additional restructuring costs related to this plan as of the date of this filing.

Restructuring expenses incurred since the plan of restructuring was first implemented in 2014 totaled $6.4 million, all within the Wealth Management and Trust segment.

The following table presents a summary of the restructuring activity for the three and six months ended June 30, 2018 and 2017:

	Severance Charges			Total
	(In thousands)
Accrued charges at December 31, 2017	$	337		$	337
Costs paid	(254		)	(254		)
Accrued charges at March 31, 2018	83			83
Costs paid	(83		)	(83		)
Accrued charges at June 30, 2018	$	—		$	—
Accrued charges at December 31, 2016	$	1,977		$	1,977
Costs paid	(618		)	(618		)
Accrued charges at March 31, 2017	1,359			1,359
Costs paid	(335		)	(335		)
Accrued charges at June 30, 2017	$	1,024		$	1,024

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Revenue Recognition (Notes)

6 Months Ended

Jun. 30, 2018

Revenue Recognition [Abstract]

Revenue Recognition, Deferred Revenue [Policy Text Block]

Revenue Recognition

On January 1, 2018, the Company adopted ASU 2014-09 et al. As stated in Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 1: Basis of Presentation and Summary of Significant Accounting Policies,” the implementation of the new standard did not have a material impact on the measurement or recognition of revenue; as such, a cumulative effect adjustment to opening retained earnings was not deemed necessary. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, Revenue from Contracts with Customers (“ASC 606”), while prior period amounts were not adjusted and continue to be reported in accordance with our historic accounting under ASC 605, Revenue Recognition.

ASC 606 does not apply to revenue associated with financial instruments, including interest income on loans and investment securities. In addition, certain noninterest income such as fees associated with mortgage servicing rights, late fees, BOLI income, and derivatives are also not in scope of the new guidance. ASC 606 is applicable to noninterest income such as investment management fees, wealth advisory fees, wealth management and trust fees, and certain banking fees. However, the recognition of this revenue did not change upon adoption of ASC 606. Substantially all of the Company’s revenue is generated from contracts with customers. Noninterest income considered in-scope of ASC 606 is discussed below.

Investment management fees

Investment management fees are earned for the management of a series of accounts and funds in which clients invest directly, acting as a sub-advisor to larger investment management companies, or private client account management. The Company’s performance obligation is satisfied over time and the resulting fees are recognized monthly, based upon either the beginning-of quarter (in advance) or quarter-end (in arrears) market value of the assets under management and the applicable fee rate, depending on the terms of the contract. Payment is generally received a few days after month end through a direct charge to customers’ accounts. The Company may earn performance-based incentives on certain contracts. Receivables are recorded on the consolidated balance sheet in the fees receivable line item.

All of the investment management fee income on the consolidated statement of operations for the three and six months ended June 30, 2018 and 2017 is considered in-scope of ASC 606.

Wealth advisory fees

Wealth advisory fees are earned for providing financial advisory services to clients. The Company’s performance obligation under these contracts is satisfied over time as the financial advisory services are provided. Fees are recognized monthly based either on a fixed fee amount or are based on the quarter-end (in arrears) market value of the assets under management and the applicable fee rate (“asset based fees”), depending on the terms of the contract. Payment on fixed fee contracts is received based on a schedule outlined in the contract, while payment on asset based fees are generally received a few days after quarter end through a direct charge to customers’ accounts. No performance based incentives are earned on wealth advisory contracts. Receivables are recorded on the consolidated balance sheet in the fees receivable line item. Deferred revenues related to the fixed fee contracts of $6.7 million and $6.6 million at June 30, 2018 and December 31, 2017, respectively, are recorded on the consolidated balance sheet within the other liabilities line item.

All of the wealth advisory fee income on the consolidated statement of operations for the three and six months ended June 30, 2018 and 2017 is considered in-scope of ASC 606.

Wealth management and trust fees

Wealth management and trust fees are earned for providing investment management, wealth management, retirement plan advisory, family office, financial planning, and trust services to clients. The Company’s performance obligation under these contracts is satisfied over time as the wealth management services are provided. Fees are recognized monthly based on the average monthly, beginning-of-quarter, or, for a small number of clients, end-of-quarter market value of the assets under management and the applicable fee rate, depending on the terms of the contract. No performance based incentives are earned on wealth management contracts. Receivables are recorded on the consolidated balance sheet in the fees receivable line item.

Trust fees are earned when the Company is appointed as trustee for clients. As trustee, the Company administers the client’s trust and manages the assets of the trust including investments and property. The Company’s performance obligation under these agreements is satisfied over time as the administration and management services are provided. Fees are recognized monthly based on a percentage of the market value of the account as outlined in the agreement. Payment frequency is defined in the individual contracts which primarily stipulate monthly in arrears. No performance based incentives are earned on trust fee contracts. Receivables are recorded on the consolidated balance sheet in the fees receivable line item.

All of the wealth management and trust fee income on the consolidated statement of operations for the three and six months ended June 30, 2018 and 2017 is considered in-scope of ASC 606.

Other banking fee income

The Bank charges a variety of fees to its clients for services provided on the deposit and deposit management related accounts. Each fee is either transaction-based or assessed monthly. The types of fees include service charges on accounts, overdraft fees, maintenance fees, ATM fee charges, credit card charges, and other miscellaneous charges related to the accounts. These fees are not governed by individual contracts with clients. They are charges to clients based on disclosures presented to clients upon opening these accounts along with updated disclosures when changes are made to the fee structures. The transaction-based fees are recognized in revenue when charged to the client based on specific activity on the client’s account. Monthly service/maintenance charges are recognized in the month they are earned and are charged directly to the client’s account.

The Bank also charges fees for treasury activities such as foreign exchange fees for clients with a banking relationship. These fees are recorded when earned via completion of the transaction for the client. The completion of the transaction is deemed to be the performance obligation of the transaction. The related revenue is recorded through a direct charge to the client’s account. There are no individual agreements or contracts with clients as it relates to foreign exchange fees as they are governed by client disclosure statements and the Bank’s internal policies and procedures.

For the three months ended June 30, 2018 and 2017, $1.1 million and $0.9 million, respectively, of other banking fee income as described above is considered in-scope for ASC 606. For the six months endedJune 30, 2018 and 2017, $2.0 million and $1.8 million, respectively, of other banking fee income as described above is considered in-scope for ASC 606.

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Recent Accounting Pronouncements

6 Months Ended

Jun. 30, 2018

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Description of New Accounting Pronouncements Not yet Adopted [Text Block]

Recent Accounting Pronouncements

In May 2014 and at various other dates after May 2014, the FASB issued ASU 2014-09 et al. Under the new standard, a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration which the company expects to receive in exchange for those goods or services. ASU 2014-09 et al. does not apply to revenue associated with financial instruments such as loans and securities. On January 1, 2018, the Company adopted ASU 2014-09 et al. using the modified retrospective transition method, however no cumulative effect adjustment to opening retained earnings as of January 1, 2018 was required. For additional disclosure details, see Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 1: Basis of Presentation and Summary of Significant Accounting Policies and Note 13: Revenue Recognition.”

In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Instruments - Going Concern (“ASU 2014-15”). ASU 2014-15 requires management to evaluate an entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. Management must evaluate whether conditions and events raise substantial doubt about an entity’s ability to continue as a going concern and then whether its plans alleviate that doubt. ASU 2014-15 was effective in 2016 and management performed the required evaluation and concluded that there were no such conditions or events that raised substantial doubt about the Company’s ability to continue as a going concern.

In January 2016, the FASB issued ASU 2016-01. This ASU requires equity investments to be measured at fair value with changes in fair value, net of tax, recognized in net income. As a result of implementing this standard, the Company reclassified $339 thousand in unrealized gains on available-for-sale equity investments, net of tax, from accumulated other comprehensive income to retained earnings as of January 1, 2018. Additionally, this amendment requires that entities use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. As a result of implementing this standard, the Company’s updated process includes identifying a fair value for loans using the exit price notion. See Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 5: Fair Value Measurements” for further details.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This ASU update amends current lease accounting and requires all leases, other than short-term leases, to be reported on the balance sheet through the recognition of a right-of-use asset and a corresponding liability for future lease obligations. The amended guidance will be effective for fiscal years beginning after December 15, 2018, including interim periods within those annual periods and will require transition utilizing a modified retrospective approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. Early adoption of this ASU is permitted although the Company does not plan to early adopt. The Company does not anticipate a material impact to revenue or operating expenses as a result of the adoption of this ASU. The Company expects that this ASU will gross up the assets and liabilities on the balance sheet related to the lease assets and liabilities and reduce regulatory capital ratios.

In March 2016, the FASB issued ASU 2016-09, Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This update is intended to simplify several aspects of the accounting for employee share-based plans such as income tax consequences, classification of awards as either liabilities or equity on the balance sheet, and classification on the statement of cash flows. This ASU was effective for fiscal years beginning after December 15, 2016, including interim periods within those years. The Company adopted this ASU on January 1, 2017. The adoption of this ASU has resulted in, and will continue to result in, fluctuations in the Company’s earnings due to changes in the Company’s stock price between issuance date and settlement date of employee share-based transactions. In addition, the Company anticipates that certain stock options will expire unexercised, due to having no intrinsic value, and this ASU requires the previous tax benefits to be reversed.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments (Topic 326) (“ASU 2016-13”). This update is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This ASU will be effective for fiscal years beginning after December 15, 2019. Early adoption is available as of the fiscal year beginning after December 15, 2018. The Company does not plan on adopting early. The impact of this ASU on the Company’s consolidated financial statements will depend on factors at the time of adoption such as the balance and type of loans on the balance sheet, the Company’s loan loss history, and various qualitative factors.

In August 2016, the FASB issued ASU 2016-15.  This update is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. This ASU was effective for the Company beginning on January 1, 2018. Early adoption was permitted, provided that all of the amendments are adopted in the same period, however the Company did not early adopt. The guidance requires application using a retrospective transition method. This ASU did not have an impact on the Company’s consolidated financial statements.

In March 2017, the FASB issued ASU 2017-07. This amendment requires an employer to report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. This ASU was effective for fiscal years beginning after December 15, 2017, and interim periods within those years. As a result of the adoption of this ASU, $181 thousand and $341 thousand, respectively, has been reclassified from salaries and employee benefits expense to other expense within the Company’s consolidated statement of operations for the three and six months ended June 30, 2017. For the three and six months ended June 30, 2018, $145 thousand and $280 thousand, respectively, is presented within other expense that would have been presented within salaries and employee benefits prior to adoption of ASU 2017-07.

In March 2017, the FASB issued ASU 2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities (“ASU 2017-08”). This update amends the amortization period for certain purchased callable debt securities held at a premium. The amortization period for the premium on such securities is being shortened to the earliest call date. Under current GAAP, entities generally amortize the premium as an adjustment of yield over the contractual life of the instrument. ASU 2017-08 is effective for fiscal years beginning after December 15, 2018, and interim periods within those years. Early adoption is permitted, including in an interim period. The guidance requires application using a modified retrospective transition method through a cumulative-effect adjustment to beginning retained earnings. The Company early adopted this ASU as of July 1, 2017, which had an immaterial impact on the consolidated financial statements.

In August 2017, the FASB issued ASU 2017-12. The standard is intended to improve the transparency and understandability of information conveyed to financial statement users about an entity’s risk management activities by better aligning the entity’s financial reporting for hedging relationships with those risk management activities and to reduce the complexity of and simplify the application of hedge accounting by preparers. ASU No. 2017-12 is effective for interim and annual reporting periods beginning after December 15, 2018 and early adoption is permitted. The Company elected to early adopt this ASU as of January 1, 2018 with a modified retrospective transition. As a result of implementing this standard, the Company reclassified $5 thousand in unrealized losses on derivatives from accumulated other comprehensive income to retained earnings as of January 1, 2018. This ASU will provide more flexibility in the Company’s risk management activities and we believe it will enhance the Company’s ability to employ risk management strategies, while improving the transparency and understanding of those strategies for financial statement users.

In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This update was issued to address a narrow-scope financial reporting issue that arose as a consequence of the change in the tax law. On December 22, 2017, the U.S. federal government enacted the Tax Act which, among other significant changes, lowers the federal corporate tax rate from 35% to 21% effective January 1, 2018. This update requires a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the enactment of the Tax Act. ASC 740 requires that the tax effects of changes in tax rates be recognized in income tax expense/ (benefit) attributable to continuing operations in the period in which the law is enacted. As a result, the tax effect of accumulated other comprehensive income does not reflect the appropriate tax rate. The amendments in this ASU eliminate the stranded tax effects associated with the change in the federal corporate income tax rate related to the Tax Act and improve the usefulness of information reported to financial statement users. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those years. Early adoption is permitted for public business entities for reporting periods for which financial statements have not yet been issued. The Company early adopted this ASU on December 31, 2017 and reclassified $1.5 million from accumulated other comprehensive income to retained earnings.

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Basis of Presentation and Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2018

Basis of Presentation and Summary of Significant Accounting Policies [Abstract]

New Accounting Pronouncements, Policy [Policy Text Block]

For interim reporting purposes, the Company follows the same significant accounting policies, except for the following new accounting pronouncements from the Financial Accounting Standards Board (the “FASB”) that were adopted effective January 1, 2018:

• Accounting Standards Update (“ASU”) 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities (“ASU 2017-12”). As a result of implementing this standard, the Company reclassified $5 thousand in unrealized losses on derivatives related to hedge ineffectiveness from accumulated other comprehensive income to retained earnings as of January 1, 2018. This ASU will provide more flexibility in the Company’s risk management activities and we believe it will enhance the Company’s ability to employ risk management strategies, while improving the transparency and understanding of those strategies for financial statement users.

• ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (“ASU 2017-07”). This amendment requires an employer to report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. As a result of the retrospective adoption of this ASU, $181 thousand and $341 thousand for the three and six months ended June 30, 2017, respectively, has been reclassified from salaries and employee benefits expense to other expense within the Company’s consolidated statement of operations. For the three and six months ended June 30, 2018, $145 thousand and $280 thousand, respectively, is presented within other expense that would have been presented within salaries and employee benefits prior to adoption of ASU 2017-07.

• ASU 2016-15, Statement of Cash Flows (Topic 230) (“ASU 2016-15”).  This update is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. This ASU is effective for the Company beginning on January 1, 2018. The guidance requires application using a retrospective transition method. This ASU did not have an impact on the Company’s consolidated financial statements.

• ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). This amendment requires equity investments to be measured at fair value with changes in fair value, net of tax, recognized in net income. As a result of implementing this standard, the Company reclassified $339 thousand in unrealized gains on available-for-sale equity investments, net of tax, from accumulated other comprehensive income to retained earnings as of January 1, 2018. Additionally, this amendment requires that entities use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. As a result of implementing this standard, the Company’s updated process includes identifying a fair value for loans using the exit price notion. See Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 5: Fair Value Measurements” for further details.

• ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which was subsequently amended by additional ASUs, including ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) and ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, collectively, “ASU 2014-09 et al.” ASU 2014-09 et al. was adopted using the modified retrospective transition method as of January 1, 2018, however no cumulative effect adjustment was required. This new guidance was applied to all revenue contracts in place at the date of adoption. See Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 13: Revenue Recognition” for further details.

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Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2018

Earnings Per Share [Abstract]

Schedule of Calculation of Numerator and Denominator in Earnings Per Share [Table Text Block]

The treasury stock method of calculating earnings per share (“EPS”) is presented below for the three and six months ended June 30, 2018 and 2017. The following tables present the computations of basic and diluted EPS:

	Three months ended June 30,						Six months ended June 30,
	2018			2017			2018			2017
	(In thousands, except share and per share data)
Basic earnings per share - Numerator:
Net income from continuing operations	$	7,404		$	23,493		$	29,442		$	38,489
Less: Net income attributable to noncontrolling interests	968			1,150			2,018			2,116
Net income from continuing operations attributable to the Company	6,436			22,343			27,424			36,373
Decrease/ (increase) in noncontrolling interests’ redemption values (1)	(408		)	292			438			(5		)
Dividends on preferred stock (2)	(3,116		)	(869		)	(3,985		)	(1,738		)
Total adjustments to income attributable to common shareholders	(3,524		)	(577		)	(3,547		)	(1,743		)
Net income from continuing operations attributable to common shareholders, treasury stock method	2,912			21,766			23,877			34,630
Net income/ (loss) from discontinued operations	(2		)	1,063			1,696			2,695
Net income attributable to common shareholders, treasury stock method	$	2,910		$	22,829		$	25,573		$	37,325
Basic earnings per share - Denominator:
Weighted average basic common shares outstanding	83,509,115			82,298,493			83,304,573			82,125,795
Per share data - Basic earnings per share from:
Continuing operations	$	0.03		$	0.27		$	0.29		$	0.42
Discontinued operations	$	—		$	0.01		$	0.02		$	0.03
Total attributable to common shareholders	$	0.03		$	0.28		$	0.31		$	0.45

	Three months ended June 30,					Six months ended June 30,
	2018			2017		2018		2017
	(In thousands, except share and per share data)
Diluted earnings per share - Numerator:
Net income from continuing operations attributable to common shareholders, after assumed dilution	$	2,912		$	21,766	$	23,877	$	34,630
Net income/ (loss) from discontinued operations	(2		)	1,063		1,696		2,695
Net income attributable to common shareholders, after assumed dilution	$	2,910		$	22,829	$	25,573	$	37,325
Diluted earnings per share - Denominator:
Weighted average basic common shares outstanding	83,509,115			82,298,493		83,304,573		82,125,795
Dilutive effect of:
Stock options, performance-based and time-based restricted stock, and performance-based and time-based restricted stock units, and other dilutive securities (3)	1,076,049			1,338,939		1,112,938		1,394,605
Warrants to purchase common stock (3)	828,411			1,104,248		804,463		1,137,909
Dilutive common shares	1,904,460			2,443,187		1,917,401		2,532,514
Weighted average diluted common shares outstanding (3)	85,413,575			84,741,680		85,221,974		84,658,309
Per share data - Diluted earnings per share from:
Continuing operations	$	0.03		$	0.26	$	0.28	$	0.41
Discontinued operations	$	—		$	0.01	$	0.02	$	0.03
Total attributable to common shareholders	$	0.03		$	0.27	$	0.30	$	0.44
Dividends per share declared and paid on common stock	$	0.12		$	0.11	$	0.24	$	0.22

_____________________

(1) See Part II. Item 8. “Financial Statements and Supplementary Data - Note 14: Noncontrolling Interests” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 for a description of the redemption values related to the redeemable noncontrolling interests. In accordance with the FASB Accounting Standards Codification (“ASC”) 480, Distinguishing Liabilities from Equity (“ASC 480”), an increase in redemption value from period to period reduces income attributable to common shareholders. Decreases in redemption value from period to period increase income attributable to common shareholders, but only to the extent that the cumulative change in redemption value remains a cumulative increase since adoption of this standard in the first quarter of 2009.

(2) Consideration paid in excess of carrying value for the redemption of the 6.95% Non-Cumulative Perpetual Preferred Stock, Series D (“the Series D preferred stock”) of $2.2 million is considered a deemed dividend and, for purposes of calculating EPS, reduces net income attributable to common shareholders for the three and six month ended June 30, 2018.

(3) The diluted EPS computations for the three and six months ended June 30, 2018 and 2017 do not assume the conversion, exercise, or contingent issuance of the following shares for the following periods because the result would have been anti-dilutive for the periods indicated. As a result of the anti-dilution, the potential common shares excluded from the diluted EPS computation are as follows:

	Three months ended June 30,		Six months ended June 30,
	2018	2017	2018	2017
Shares excluded due to exercise price exceeding the average market price of common shares during the period (total outstanding):	(In thousands)
Potential common shares from:
Stock options	16	54	136	87
Total shares excluded due to exercise price exceeding the average market price of common shares during the period	16	54	136	87

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Reportable Segments (Tables)

6 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

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 six months ended June 30, 2018 and 2017. Interest expense on junior subordinated debentures is reported at the Holding Company.

	Three months ended June 30,					Six months ended June 30,
	2018		2017			2018			2017
Private Banking	(In thousands)
Net interest income	$	58,447	$	57,783		$	116,578		$	112,039
Fees and other income	2,825		2,634			5,300			4,462
Total revenues	61,272		60,417			121,878			116,501
Provision/ (credit) for loan losses	453		(6,114		)	(1,342		)	(6,295		)
Operating expense	39,670		36,904			79,297			71,962
Income before income taxes	21,149		29,627			43,923			50,834
Income tax expense	3,981		9,209			8,594			15,478
Net income from continuing operations	17,168		20,418			35,329			35,356
Net income attributable to the Company	$	17,168	$	20,418		$	35,329		$	35,356
Assets	$	8,637,774	$	7,951,911		$	8,637,774		$	7,951,911
Depreciation	$	2,031	$	1,343		$	3,615		$	2,714

	Three months ended June 30,					Six months ended June 30,
	2018		2017			2018		2017
Wealth Management and Trust	(In thousands)
Fees and other income	$	11,293	$	11,274		$	23,567	$	22,195
Operating expense	11,058		11,937			21,752		25,810
Income/ (loss) before income taxes	235		(663		)	1,815		(3,615		)
Income tax expense/ (benefit)	34		(239		)	509		(1,405		)
Net income/ (loss) from continuing operations	201		(424		)	1,306		(2,210		)
Net income/ (loss) attributable to the Company	$	201	$	(424	)	$	1,306	$	(2,210	)
Assets	$	73,202	$	74,842		$	73,202	$	74,842
Amortization of intangibles	$	701	$	727		$	1,402	$	1,454
Depreciation	$	334	$	341		$	655	$	678

	Three months ended June 30,				Six months ended June 30,
	2018		2017		2018		2017
Investment Management (1)	(In thousands)
Net interest income	$	2	$	4	$	6	$	8
Fees and other income	4,234		11,091		15,642		21,950
Total revenues	4,236		11,095		15,648		21,958
Operating expense	3,120		8,346		11,645		16,700
Income before income taxes	1,116		2,749		4,003		5,258
Income tax expense	249		894		920		1,738
Net income from continuing operations	867		1,855		3,083		3,520
Noncontrolling interests	202		512		690		974
Net income attributable to the Company	$	665	$	1,343	$	2,393	$	2,546
Assets	$	7,189	$	91,915	$	7,189	$	91,915
Amortization of intangibles	$	—	$	651	$	—	$	1,301
Depreciation	$	32	$	61	$	66	$	127

	Three months ended June 30,				Six months ended June 30,
	2018		2017		2018		2017
Wealth Advisory	(In thousands)
Net interest income	$	77	$	29	$	125	$	46
Fees and other income	13,717		12,980		27,256		25,823
Total revenues	13,794		13,009		27,381		25,869
Operating expense	9,227		8,943		19,763		18,386
Income before income taxes	4,567		4,066		7,618		7,483
Income tax expense	1,214		1,511		2,000		2,798
Net income from continuing operations	3,353		2,555		5,618		4,685
Noncontrolling interests	766		638		1,328		1,142
Net income attributable to the Company	$	2,587	$	1,917	$	4,290	$	3,543
Assets	$	76,175	$	75,247	$	76,175	$	75,247
Amortization of intangibles	$	48	$	48	$	97	$	97
Depreciation	$	164	$	235	$	327	$	461

	Three months ended June 30,						Six months ended June 30,
	2018			2017			2018			2017
Holding Company and Eliminations	(In thousands)
Net interest income	$	(981	)	$	(671	)	$	(1,781	)	$	(1,306	)
Fees and other income	26			39			73			94
Total revenues	(955		)	(632		)	(1,708		)	(1,212		)
Operating expense	1,309			1,691			2,784			3,743
Income/ (loss) before income taxes	(2,264		)	(2,323		)	(4,492		)	(4,955		)
Income tax expense/ (benefit) (2)	11,921			(1,412		)	11,402			(2,093		)
Net income/ (loss) from continuing operations	(14,185		)	(911		)	(15,894		)	(2,862		)
Discontinued operations	(2		)	1,063			1,696			2,695
Net income/ (loss) attributable to the Company	$	(14,187	)	$	152		$	(14,198	)	$	(167	)
Assets (including eliminations)	$	(78,137	)	$	(86,269	)	$	(78,137	)	$	(86,269	)

	Three months ended June 30,						Six months ended June 30,
	2018			2017			2018			2017
Total Company	(In thousands)
Net interest income	$	57,545		$	57,145		$	114,928		$	110,787
Fees and other income	32,095			38,018			71,838			74,524
Total revenues	89,640			95,163			186,766			185,311
Provision/ (credit) for loan losses	453			(6,114		)	(1,342		)	(6,295		)
Operating expense	64,384			67,821			135,241			136,601
Income before income taxes	24,803			33,456			52,867			55,005
Income tax expense	17,399			9,963			23,425			16,516
Net income from continuing operations	7,404			23,493			29,442			38,489
Noncontrolling interests	968			1,150			2,018			2,116
Discontinued operations	(2		)	1,063			1,696			2,695
Net income attributable to the Company	$	6,434		$	23,406		$	29,120		$	39,068
Assets	$	8,716,203		$	8,107,646		$	8,716,203		$	8,107,646
Amortization of intangibles	$	749		$	1,426		$	1,499		$	2,852
Depreciation	$	2,561		$	1,980		$	4,663		$	3,980

_____________________

(1) Results for the Investment Management segment for the three and six months ended June 30, 2017 include results for DGHM and Anchor. Results for the Investment Management segment for the three and six months ended June 30, 2018 include results for DGHM and results for Anchor through its sale date in April 2018. Assets for the Investment Management Segment at June 30, 2017 include assets of DGHM and Anchor. Assets for the Investment Management segment at June 30, 2018 include assets of DGHM.

(2) Income tax expense/ (benefit) for the three and six months ended June 30, 2018 include $12.7 million in additional expense related to the sale of Anchor in April 2018.

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Investments (Tables)

6 Months Ended

Jun. 30, 2018

Investments [Abstract]

Schedule of Available-for-sale Securities Reconciliation [Table Text Block]

The following tables present a summary of investment securities:

	Amortized Cost		Unrealized					Fair Value
			Gains		Losses
	(In thousands)
At June 30, 2018
Available-for-sale securities at fair value:
U.S. government and agencies	$	35,061	$	—	$	(1,361	)	$	33,700
Government-sponsored entities	275,881		—		(6,277		)	269,604
Municipal bonds	297,257		1,722		(3,790		)	295,189
Mortgage-backed securities (1)	493,644		260		(23,372		)	470,532
Other	7,942		—		—			7,942
Total	$	1,109,785	$	1,982	$	(34,800	)	$	1,076,967
Held-to-maturity securities at amortized cost:
U.S. government and agencies	$	11,902	$	2	$	—		$	11,904
Mortgage-backed securities (1)	67,053		—		(2,210		)	64,843
Total	$	78,955	$	2	$	(2,210	)	$	76,747
At December 31, 2017
Available-for-sale securities at fair value:
U.S. government and agencies	$	35,132	$	—	$	(833	)	$	34,299
Government-sponsored entities	305,101		22		(2,622		)	302,501
Municipal bonds	299,647		4,559		(1,148		)	303,058
Mortgage-backed securities (1)	521,753		491		(12,568		)	509,676
Other	20,794		—		—			20,794
Total	$	1,182,427	$	5,072	$	(17,171	)	$	1,170,328
Held-to-maturity securities at amortized cost:
Mortgage-backed securities (1)	$	74,576	$	—	$	(795	)	$	73,781
Total	$	74,576	$	—	$	(795	)	$	73,781

_____________________

(1)  All mortgage-backed securities are guaranteed by the U.S. government, U.S. government agencies, or government-sponsored entities.

Investments Classified by Contractual Maturity Date [Table Text Block]

The following table presents the maturities of available-for-sale investment securities, based on contractual maturity, as of June 30, 2018. Certain securities are callable before their final maturity. Additionally, certain securities (such as mortgage-backed securities) are shown within the table below based on their final (contractual) maturity, but due to prepayments and amortization are expected to have shorter lives.

	Available-for-sale Securities
	Amortized cost		Fair value
	(In thousands)
Within one year	$	75,733	$	75,473
After one, but within five years	313,162		306,903
After five, but within ten years	312,887		298,202
Greater than ten years	408,003		396,389
Total	$	1,109,785	$	1,076,967

The following table presents the maturities of held-to-maturity investment securities, based on contractual maturity, as of June 30, 2018.

	Held-to-maturity Securities
	Amortized cost		Fair value
	(In thousands)
Within one year	$	11,902	$	11,904
After one, but within five years	—		—
After five, but within ten years	33,063		32,020
Greater than ten years	33,990		32,823
Total	$	78,955	$	76,747

Realized Gain (Loss) on Investments [Table Text Block]

The following table presents the proceeds from sales, gross realized gains and gross realized losses for available-for-sale securities that were sold or called during the following periods as well as changes in the fair value of equity securities as prescribed by ASC 321, Investment - Equity Securities. ASU 2016-01, Recognition and Measurements of Financial Assets and Financial Liabilities was adopted on January 1, 2018, at which time a cumulative effect adjustment of $339 thousand was recorded to reclassify the amount of accumulated unrealized gains related to equity securities from accumulated other comprehensive income to retained earnings.

	Three months ended June 30,					Six months ended June 30,
	2018		2017			2018			2017
	(In thousands)
Proceeds from sales and calls	$	19,673	$	70,314		$	35,550		$	103,031
Realized gains	—		255			7			274
Realized losses	—		(18		)	(1		)	(18		)
Change in unrealized gain/ (loss) on equity securities reflected in the consolidated statement of operations	7		n/a			(23		)	n/a

Schedule of Unrealized Loss on Investments [Table Text Block]

The following tables present information regarding securities at June 30, 2018 and December 31, 2017 having temporary impairment, due to the fair values having declined below the amortized cost of the individual securities, and the time period that the investments have been temporarily impaired.

	Less than 12 months					12 months or longer					Total
	Fair value		Unrealized losses			Fair value		Unrealized losses			Fair value		Unrealized losses			# of securities
	(In thousands, except number of securities)
June 30, 2018
Available-for-sale securities
U.S. government and agencies	$	9,861	$	(114	)	$	23,839	$	(1,247	)	$	33,700	$	(1,361	)	6
Government-sponsored entities	212,331		(4,038		)	57,273		(2,239		)	269,604		(6,277		)	40
Municipal bonds	132,307		(1,526		)	49,256		(2,264		)	181,563		(3,790		)	95
Mortgage-backed securities (1)	98,941		(3,400		)	358,348		(19,972		)	457,289		(23,372		)	112
Total	$	453,440	$	(9,078	)	$	488,716	$	(25,722	)	$	942,156	$	(34,800	)	253
Held-to-maturity securities
Mortgage-backed securities (1)	$	48,598	$	(1,643	)	$	16,245	$	(567	)	$	64,843	$	(2,210	)	16
Total	$	48,598	$	(1,643	)	$	16,245	$	(567	)	$	64,843	$	(2,210	)	16

	Less than 12 months					12 months or longer					Total
	Fair value		Unrealized losses			Fair value		Unrealized losses			Fair value		Unrealized losses			# of securities
	(In thousands, except number of securities)
December 31, 2017
Available-for-sale securities
U.S. government and agencies	$	14,902	$	(79	)	$	19,397	$	(754	)	$	34,299	$	(833	)	6
Government-sponsored entities	220,275		(1,350		)	38,273		(1,272		)	258,548		(2,622		)	36
Municipal bonds	46,112		(131		)	50,842		(1,017		)	96,954		(1,148		)	63
Mortgage-backed securities (1)	97,117		(903		)	386,785		(11,665		)	483,902		(12,568		)	103
Total	$	378,406	$	(2,463	)	$	495,297	$	(14,708	)	$	873,703	$	(17,171	)	208
Held-to-maturity securities
Mortgage-backed securities (1)	$	59,218	$	(534	)	$	14,563	$	(261	)	$	73,781	$	(795	)	16
Total	$	59,218	$	(534	)	$	14,563	$	(261	)	$	73,781	$	(795	)	16

_____________________

(1)  All mortgage-backed securities are guaranteed by the U.S. government, U.S. government agencies, or government-sponsored entities.

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2018

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

The following tables present the Company’s assets and liabilities measured at fair value on a recurring basis as of June 30, 2018 and December 31, 2017, aggregated by the level in the fair value hierarchy within which those measurements fall:

	As of June 30, 2018		Fair value measurements at reporting date using:
			Quoted prices in active markets for identical assets (Level 1)		Significant  other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
	(In thousands)
Assets:
Available-for-sale securities:
U.S. government and agencies	$	33,700	$	33,570	$	130	$	—
Government-sponsored entities	269,604		—		269,604		—
Municipal bonds	295,189		—		295,189		—
Mortgage-backed securities	470,532		—		470,532		—
Other	7,942		7,942		—		—
Total available-for-sale securities	1,076,967		41,512		1,035,455		—
Derivatives - interest rate customer swaps	26,865		—		26,865		—
Derivatives - interest rate swaps	1,197		—		1,197		—
Derivatives - risk participation agreement	24		—		24		—
Derivatives - customer foreign exchange forwards	1		—		1		—
Trading securities held in a “rabbi trust”	7,392		7,392		—		—
Liabilities:
Derivatives - interest rate customer swaps	$	27,290	$	—	$	27,290	$	—
Derivatives - risk participation agreement	113		—		113		—
Derivatives - customer foreign exchange forwards	1		—		1		—
Deferred compensation “rabbi trust”	7,392		7,392		—		—

			Fair value measurements at reporting date using:
	As of December 31, 2017		Quoted prices in active markets for identical assets (Level 1)		Significant  other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
	(In thousands)
Assets:
Available-for-sale securities:
U.S. government and agencies	$	34,299	$	34,096	$	203	$	—
Government-sponsored entities	302,501		—		302,501		—
Municipal bonds	303,058		—		303,058		—
Mortgage-backed securities	509,676		—		509,676		—
Other	20,794		20,794		—		—
Total available-for-sale securities	1,170,328		54,890		1,115,438		—
Derivatives - interest rate customer swaps	18,575		—		18,575		—
Derivatives - interest rate swaps	555		—		555		—
Derivatives - risk participation agreements	1		—		1		—
Derivatives - customer foreign exchange forwards	2		—		2		—
Trading securities held in a rabbi trust	7,062		7,062		—		—
Liabilities:
Derivatives - interest rate customer swaps	$	18,953	$	—	$	18,953	$	—
Derivatives - interest rate swaps	80		—		80		—
Derivatives - risk participation agreements	108		—		108		—
Derivatives - customer foreign exchange forwards	2		—		2		—
Deferred compensation rabbi trust	7,062		7,062		—		—

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Table Text Block]

The following tables present the Company’s assets and liabilities measured at fair value on a non-recurring basis during the periods ended June 30, 2018 and 2017, respectively, aggregated by the level in the fair value hierarchy within which those measurements fall.

	As of June 30, 2018		Fair value measurements at reporting date using:						Gain (losses) from fair value changes
			Quoted prices in active markets for identical assets (Level 1)		Significant  other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Three months ended June 30, 2018			Six months ended June 30, 2018
	(In thousands)
Assets:
Impaired loans (1)	$	3,051	$	—	$	—	$	3,051	$	(711	)	$	(927	)

_____________________

(1) Collateral-dependent impaired loans held at June 30, 2018 that had write-downs in fair value or whose specific reserve changed during the first six months of 2018.

	As of June 30, 2017		Fair value measurements at reporting date using:						Gain (losses) from fair value changes
			Quoted prices in active markets for identical assets (Level 1)		Significant  other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Three months ended June 30, 2017			Six months ended June 30, 2017
	(In thousands)
Assets:
Impaired loans (1)	$	1,040	$	—	$	—	$	1,040	$	(221	)	$	(219	)

_____________________

(1) Collateral-dependent impaired loans held at June 30, 2017 that had write-downs in fair value or whose specific reserve changed during the first six months of 2017.

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Table Text Block]

The following tables present additional quantitative information about assets measured at fair value on a non-recurring basis for which the Company has utilized Level 3 inputs to determine fair value:

	As of June 30, 2018
	Fair Value		Valuation Technique	Unobservable Input	Range of Inputs Utilized	Weighted Average of Inputs Utilized
	(In thousands)
Impaired Loans	$	3,051	Appraisals of Collateral	Discount for costs to sell	0% - 24%	9%
				Appraisal adjustments	0% - 20%	7%

	As of June 30, 2017
	Fair Value		Valuation Technique	Unobservable Input	Range of Inputs Utilized	Weighted Average of Inputs Utilized
	(In thousands)
Impaired Loans	$	1,040	Appraisals of Collateral	Discount for costs to sell	0% - 7%	6%
				Appraisal adjustments	0% - 20%	16%

Fair Value, by Balance Sheet Grouping [Table Text Block]

The following tables present the carrying values and fair values of the Company’s financial instruments that are not measured at fair value on a recurring basis:

	As of June 30, 2018
	Book Value		Fair Value		Quoted prices  in active markets for identical assets  (Level 1)		Significant  other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
	(In thousands)
FINANCIAL ASSETS:
Cash and cash equivalents	$	364,539	$	364,539	$	364,539	$	—	$	—
Investment securities held-to-maturity	78,955		76,747		11,904		64,843		—
Loans held for sale	4,622		4,691		—		4,691		—
Loans, net	6,693,659		6,680,524		—		—		6,680,524
Other financial assets	104,264		104,264		—		104,264		—
FINANCIAL LIABILITIES:
Deposits	6,620,179		6,617,149		—		6,617,149		—
Securities sold under agreements to repurchase	58,824		58,824		—		58,824		—
Federal Home Loan Bank borrowings	1,056,938		1,053,066		—		1,053,066		—
Junior subordinated debentures	106,363		96,363		—		—		96,363
Other financial liabilities	3,465		3,465		—		3,465		—

	As of December 31, 2017
	Book Value		Fair Value		Quoted prices  in active markets for identical assets  (Level 1)		Significant  other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
	(In thousands)
FINANCIAL ASSETS:
Cash and cash equivalents	$	120,541	$	120,541	$	120,541	$	—	$	—
Investment securities held-to-maturity	74,576		73,781		—		73,781		—
Loans held for sale	4,697		4,737		—		4,737		—
Loans, net	6,430,286		6,388,297		—		—		6,388,297
Other financial assets	93,449		93,449		—		93,449		—
FINANCIAL LIABILITIES:
Deposits	6,510,246		6,509,197		—		6,509,197		—
Securities sold under agreements to repurchase	32,169		32,169		—		32,169		—
Federal funds purchased	30,000		30,000		—		30,000		—
Federal Home Loan Bank borrowings	693,681		692,402		—		692,402		—
Junior subordinated debentures	106,363		96,363		—		—		96,363
Other financial liabilities	2,224		2,224		—		2,224		—

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Loan Portfolio and Credit Quality (Tables)

6 Months Ended

Jun. 30, 2018

Loans and Leases Receivable Disclosure [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

The following table presents a summary of the loan portfolio based on the portfolio segment as of the dates indicated:

	June 30, 2018		December 31, 2017
	(In thousands)
Commercial and industrial	$	583,193	$	520,992
Commercial tax-exempt	438,882		418,698
Total commercial and industrial	1,022,075		939,690
Commercial real estate	2,504,521		2,440,220
Construction and land	172,024		164,990
Residential	2,808,206		2,682,533
Home equity	91,801		99,958
Consumer and other	168,496		177,637
Total	$	6,767,123	$	6,505,028

Schedule of Financing Receivables, Non Accrual Status [Table Text Block]

The following table presents nonaccrual loans receivable by class of receivable as of the dates indicated:

	June 30, 2018		December 31, 2017
	(In thousands)
Commercial and industrial	$	1,412	$	748
Commercial tax-exempt	—		—
Total commercial and industrial	1,412		748
Commercial real estate	1,838		1,985
Construction and land	—		110
Residential	9,610		8,470
Home equity	2,789		2,840
Consumer and other	2		142
Total	$	15,651	$	14,295

Past Due Financing Receivables [Table Text Block]

The following tables show the payment status of loans receivable by class of receivable as of the dates indicated:

	June 30, 2018
	Accruing Past Due						Nonaccrual Loans
	30-59 Days Past Due		60-89 Days Past Due		Total Accruing Past Due		Current		30-89 Days Past Due		90 Days or Greater Past Due		Total Non-Accrual Loans		Current Accruing Loans		Total Loans Receivable
	(In thousands)
Commercial and industrial	$	521	$	—	$	521	$	367	$	203	$	842	$	1,412	$	581,260	$	583,193
Commercial tax-exempt	—		—		—		—		—		—		—		438,882		438,882
Commercial real estate	—		—		—		—		—		1,838		1,838		2,502,683		2,504,521
Construction and land	—		—		—		—		—		—		—		172,024		172,024
Residential	—		3,641		3,641		2,603		800		6,207		9,610		2,794,955		2,808,206
Home equity	473		339		812		—		65		2,724		2,789		88,200		91,801
Consumer and other	—		3		3		—		—		2		2		168,491		168,496
Total	$	994	$	3,983	$	4,977	$	2,970	$	1,068	$	11,613	$	15,651	$	6,746,495	$	6,767,123

	December 31, 2017
	Accruing Past Due						Nonaccrual Loans
	30-59 Days Past Due		60-89 Days Past Due		Total Accruing Past Due		Current		30-89 Days Past Due		90 Days or Greater Past Due		Total Non-Accrual Loans		Current Accruing Loans		Total Loans Receivable
	(In thousands)
Commercial and industrial	$	10,903	$	849	$	11,752	$	355	$	—	$	393	$	748	$	508,492	$	520,992
Commercial tax-exempt	—		—		—		—		—		—		—		418,698		418,698
Commercial real estate	4,043		—		4,043		163		—		1,822		1,985		2,434,192		2,440,220
Construction and land	—		—		—		—		—		110		110		164,880		164,990
Residential	7,239		1,635		8,874		805		3,172		4,493		8,470		2,665,189		2,682,533
Home equity	355		—		355		—		71		2,769		2,840		96,763		99,958
Consumer and other	24		—		24		17		125		—		142		177,471		177,637
Total	$	22,564	$	2,484	$	25,048	$	1,340	$	3,368	$	9,587	$	14,295	$	6,465,685	$	6,505,028

Financing Receivable Credit Quality Indicators [Table Text Block]

The following tables present the loan portfolio’s credit risk profile by internally assigned grade and class of receivable as of the dates indicated:

	June 30, 2018
	By Loan Grade or Nonaccrual Status
	Pass		Special Mention		Accruing Classified (1)		Nonaccrual Loans		Total
	(In thousands)
Commercial and industrial	$	567,334	$	6,845	$	7,602	$	1,412	$	583,193
Commercial tax-exempt	438,882		—		—		—		438,882
Commercial real estate	2,426,821		46,603		29,259		1,838		2,504,521
Construction and land	164,760		—		7,264		—		172,024
Residential	2,797,270		—		1,326		9,610		2,808,206
Home equity	89,012		—		—		2,789		91,801
Consumer and other	168,492		—		2		2		168,496
Total	$	6,652,571	$	53,448	$	45,453	$	15,651	$	6,767,123

	December 31, 2017
	By Loan Grade or Nonaccrual Status
	Pass		Special Mention		Accruing Classified (1)		Nonaccrual Loans		Total
	(In thousands)
Commercial and industrial	$	496,395	$	12,898	$	10,951	$	748	$	520,992
Commercial tax-exempt	413,139		5,559		—		—		418,698
Commercial real estate	2,346,833		56,947		34,455		1,985		2,440,220
Construction and land	146,514		11,770		6,596		110		164,990
Residential	2,672,714		—		1,349		8,470		2,682,533
Home equity	97,118		—		—		2,840		99,958
Consumer and other	177,494		—		1		142		177,637
Total	$	6,350,207	$	87,174	$	53,352	$	14,295	$	6,505,028

______________________

(1) Accruing Classified includes both Substandard and Doubtful classifications.

Impaired Financing Receivables [Table Text Block]

The following tables present, by class of receivable, the balance of impaired loans with and without a related allowance, the associated allowance for those impaired loans with a related allowance, and the total unpaid principal on impaired loans:

	As of and for the three and six months ended June 30, 2018
	Recorded Investment (1)		Unpaid Principal Balance		Related Allowance		QTD Average Recorded Investment		YTD Average Recorded Investment		QTD Interest Income Recognized while Impaired		YTD Interest Income Recognized while Impaired
	(In thousands)
With no related allowance recorded:
Commercial and industrial	$	2,015	$	2,954	n/a		$	2,048	$	1,835	$	14	$	22
Commercial tax-exempt	—		—		n/a		—		—		—		—
Commercial real estate	2,932		4,695		n/a		2,939		2,460		25		50
Construction and land	—		—		n/a		82		94		16		16
Residential	10,455		10,815		n/a		10,587		10,009		87		189
Home equity	—		—		n/a		1,311		1,509		15		24
Consumer and other	—		—		n/a		—		—		—		—
Subtotal	15,402		18,464		n/a		16,967		15,907		157		301
With an allowance recorded:
Commercial and industrial	303		403		$	134	76		147		—		2
Commercial tax-exempt	—		—		—		—		—		—		—
Commercial real estate	5,426		5,855		187		5,467		6,055		72		228
Construction and land	—		—		—		—		—		—		—
Residential	816		816		82		818		821		6		12
Home equity	1,769		1,769		597		469		284		—		—
Consumer and other	—		—		—		—		18		—		3
Subtotal	8,314		8,843		1,000		6,830		7,325		78		245
Total:
Commercial and industrial	2,318		3,357		134		2,124		1,982		14		24
Commercial tax-exempt	—		—		—		—		—		—		—
Commercial real estate	8,358		10,550		187		8,406		8,515		97		278
Construction and land	—		—		—		82		94		16		16
Residential	11,271		11,631		82		11,405		10,830		93		201
Home equity	1,769		1,769		597		1,780		1,793		15		24
Consumer and other	—		—		—		—		18		—		3
Total	$	23,716	$	27,307	$	1,000	$	23,797	$	23,232	$	235	$	546

_____________________

(1) Recorded investment represents the client loan balance net of historical charge-offs and historical nonaccrual interest paid, if applicable, which was applied to principal.

	As of and for the three and six months ended June 30, 2017
	Recorded Investment (1)		Unpaid Principal Balance		Related Allowance		QTD Average Recorded Investment		YTD Average Recorded Investment		QTD Interest Income Recognized while Impaired		YTD Interest Income Recognized while Impaired
	(In thousands)
With no related allowance recorded:
Commercial and industrial	$	1,771	$	2,377	n/a		$	1,667	$	1,703	$	12	$	25
Commercial tax-exempt	—		—		n/a		1,084		1,859		80		80
Commercial real estate	2,879		6,429		n/a		3,358		3,824		724		970
Construction and land	232		568		n/a		190		181		—		—
Residential	9,600		9,971		n/a		9,561		8,958		78		179
Home equity	—		—		n/a		—		—		—		—
Consumer and other	—		—		n/a		—		—		—		—
Subtotal	14,482		19,345		n/a		15,860		16,525		894		1,254
With an allowance recorded:
Commercial and industrial	—		—		$	—	—		—		—		—
Commercial tax-exempt	—		—		—		—		—		—		—
Commercial real estate	6,996		7,425		453		7,011		7,042		96		171
Construction and land	—		—		—		—		—		—		—
Residential	2,503		2,503		507		2,613		3,312		23		62
Home equity	36		36		21		37		37		—		—
Consumer and other	—		—		—		—		—		—		—
Subtotal	9,535		9,964		981		9,661		10,391		119		233
Total:
Commercial and industrial	1,771		2,377		—		1,667		1,703		12		25
Commercial tax-exempt	—		—		—		1,084		1,859		80		80
Commercial real estate	9,875		13,854		453		10,369		10,866		820		1,141
Construction and land	232		568		—		190		181		—		—
Residential	12,103		12,474		507		12,174		12,270		101		241
Home equity	36		36		21		37		37		—		—
Consumer and other	—		—		—		—		—		—		—
Total	$	24,017	$	29,309	$	981	$	25,521	$	26,916	$	1,013	$	1,487

_____________________

(1) Recorded investment represents the client loan balance net of historical charge-offs and historical nonaccrual interest paid, if applicable, which was applied to principal.

	As of and for the year ended December 31, 2017
	Recorded Investment (1)		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized while Impaired
	(In thousands)
With no related allowance recorded:
Commercial and industrial	$	1,434	$	2,238	n/a		$	1,594	$	50
Commercial tax-exempt	—		—		n/a		1,001		80
Commercial real estate	1,832		3,453		n/a		3,098		1,546
Construction and land	109		109		n/a		172		—
Residential	9,337		9,709		n/a		9,033		360
Home equity	1,779		1,779		n/a		413		—
Consumer and other	—		—		n/a		—		—
Subtotal	14,491		17,288		n/a		15,311		2,036
With an allowance recorded:
Commercial and industrial	242		242		$	58	156		4
Commercial tax-exempt	—		—		—		—		—
Commercial real estate	6,855		7,284		362		6,980		322
Construction and land	—		—		—		—		—
Residential	828		828		89		2,469		89
Home equity	36		36		20		36		1
Consumer and other	125		250		125		10		—
Subtotal	8,086		8,640		654		9,651		416
Total:
Commercial and industrial	1,676		2,480		58		1,750		54
Commercial tax-exempt	—		—		—		1,001		80
Commercial real estate	8,687		10,737		362		10,078		1,868
Construction and land	109		109		—		172		—
Residential	10,165		10,537		89		11,502		449
Home equity	1,815		1,815		20		449		1
Consumer and other	125		250		125		10		—
Total	$	22,577	$	25,928	$	654	$	24,962	$	2,452

_____________________

(1) Recorded investment represents the client loan balance net of historical charge-offs and historical nonaccrual interest paid, if applicable, which was applied to principal.

Troubled Debt Restructurings on Financing Receivables [Table Text Block]

Since all TDR loans are considered impaired loans, they are individually evaluated for impairment. The resulting impairment, if any, would have an impact on the allowance for loan losses as a specific reserve or charge-off. If, prior to the classification as a TDR, the loan was not impaired, there would have been a general or allocated reserve on the particular loan. Therefore, depending upon the result of the impairment analysis, there could be an increase or decrease in the related allowance for loan losses. Many loans initially categorized as TDRs are already on nonaccrual status and are already considered impaired. Therefore, there is generally not a material change to the allowance for loan losses when a nonaccruing loan is categorized as a TDR.

	As of and for the three and six months ended June 30, 2018
	Restructured Current Quarter					TDRs that defaulted in the Current Quarter that were restructured in prior twelve months
	# of Loans	Pre- modification recorded investment		Post- modification recorded investment		# of Loans	Post- modification recorded investment
	(Dollars in thousands)
Commercial and industrial (1)	1	$	100	$	100	—	$	—
Commercial real estate	—	—		—		—	—
Construction and land	—	—		—		—	—
Residential	—	—		—		—	—
Home equity	—	—		—		—	—
Consumer and other	—	—		—		—	—
Total	1	$	100	$	100	—	$	—

______________________

(1)    Represents the following type of concession: extension of term.

Loan Participation Amounts by Loan Type [Table Text Block]

The following table presents a summary of the loan participations serviced for others and loans serviced for others based on class of receivable as of the dates indicated:

	June 30, 2018		December 31, 2017
	(In thousands)
Commercial and industrial	$	8,313	$	8,484
Commercial tax-exempt	19,464		19,805
Commercial real estate	49,200		49,783
Construction and land	32,229		37,840
Total loan participations serviced for others	$	109,206	$	115,912
Residential	$	38,217	$	41,440
Total loans serviced for others	$	38,217	$	41,440

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Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2018

Allowance for Loan Losses [Abstract]

Allowance for Credit Losses on Financing Receivables [Table Text Block]

The allowance for loan losses is reported as a reduction of outstanding loan balances, and totaled $73.5 million and $74.7 million at June 30, 2018 and December 31, 2017, respectively.

The following tables present a summary of the changes in the allowance for loan losses for the periods indicated:

	As of and for the three months ended June 30,						As of and for the six months ended June 30,
	2018			2017			2018			2017
	(In thousands)
Allowance for loan losses, beginning of period:
Commercial and industrial	$	11,443		$	12,291		$	11,735		$	12,751
Commercial real estate	46,116			51,164			46,820			50,412
Construction and land	4,533			3,197			4,949			3,039
Residential	9,896			10,090			9,773			10,449
Home equity	784			987			835			1,035
Consumer and other	126			302			630			391
Total allowance for loan losses, beginning of period	72,898			78,031			74,742			78,077
Loans charged-off:
Commercial and industrial	(125		)	(218		)	(339		)	(218		)
Commercial real estate	—			—			(135		)	—
Construction and land	—			—			—			—
Residential	—			—			(16		)	(58		)
Home equity	—			—			—			—
Consumer and other	(15		)	(245		)	(39		)	(245		)
Total charge-offs	(140		)	(463		)	(529		)	(521		)
Recoveries on loans previously charged-off:
Commercial and industrial	152			67			234			154
Commercial real estate	50			3,479			175			3,529
Construction and land	—			—			—			—
Residential	27			—			27			47
Home equity	—			—			1			—
Consumer and other	24			9			156			18
Total recoveries	253			3,555			593			3,748
Provision/ (credit) for loan losses:
Commercial and industrial	911			(468		)	751			(1,015		)
Commercial real estate	(983		)	(6,507		)	(1,677		)	(5,805		)
Construction and land	80			388			(336		)	546
Residential	(119		)	192			20			(156		)
Home equity	552			(58		)	500			(106		)
Consumer and other	12			339			(600		)	241
Total provision/(credit) for loan losses	453			(6,114		)	(1,342		)	(6,295		)

	As of and for the three months ended June 30,				As of and for the six months ended June 30,
	2018		2017		2018		2017
	(In thousands)
Allowance for loan losses at end of period:
Commercial and industrial	12,381		11,672		12,381		11,672
Commercial real estate	45,183		48,136		45,183		48,136
Construction and land	4,613		3,585		4,613		3,585
Residential	9,804		10,282		9,804		10,282
Home equity	1,336		929		1,336		929
Consumer and other	147		405		147		405
Total allowance for loan losses at end of period	$	73,464	$	75,009	$	73,464	$	75,009

The allowance for loan losses is an estimate of the inherent risk of loss in the loan portfolio as of the consolidated balance sheet dates. Management estimates the level of the allowance based on all relevant information available. Changes to the required level in the allowance result in either a provision for loan loss expense, if an increase is required, or a credit to the provision, if a decrease is required. Loan losses are charged to the allowance when available information confirms that specific loans, or portions thereof, are uncollectible. Recoveries on loans previously charged-off are credited to the allowance when received in cash.

The provision/ (credit) for loan losses and related balance in the allowance for loan losses for tax-exempt commercial and industrial loans are included with commercial and industrial. The provision/ (credit) for loan losses and related balance in the allowance for loan losses for tax-exempt commercial real estate loans are included with commercial real estate. There were no charge-offs or recoveries, for any period presented, for both commercial and industrial and commercial real estate tax-exempt loans.

The following tables present the Company’s allowance for loan losses and loan portfolio at June 30, 2018 and December 31, 2017 by portfolio segment, disaggregated by method of impairment analysis. The Company had no loans acquired with deteriorated credit quality at June 30, 2018 or December 31, 2017.

	June 30, 2018
	Individually Evaluated for Impairment				Collectively Evaluated for Impairment				Total
	Recorded investment (loan balance)		Allowance for loan losses		Recorded investment (loan balance)		Allowance for loan losses		Recorded investment (loan balance)		Allowance for loan losses
	(In thousands)
Commercial and industrial	$	2,318	$	134	$	1,019,757	$	12,247	$	1,022,075	$	12,381
Commercial real estate	8,358		187		2,496,163		44,996		2,504,521		45,183
Construction and land	—		—		172,024		4,613		172,024		4,613
Residential	11,271		82		2,796,935		9,722		2,808,206		9,804
Home equity	1,769		597		90,032		739		91,801		1,336
Consumer and other	—		—		168,496		147		168,496		147
Total	$	23,716	$	1,000	$	6,743,407	$	72,464	$	6,767,123	$	73,464

	December 31, 2017
	Individually Evaluated for Impairment				Collectively Evaluated for Impairment				Total
	Recorded investment (loan balance)		Allowance for loan losses		Recorded investment (loan balance)		Allowance for loan losses		Recorded investment (loan balance)		Allowance for loan losses
	(In thousands)
Commercial and industrial	$	1,676	$	58	$	938,014	$	11,677	$	939,690	$	11,735
Commercial real estate	8,687		362		2,431,533		46,458		2,440,220		46,820
Construction and land	109		—		164,881		4,949		164,990		4,949
Residential	10,165		89		2,672,368		9,684		2,682,533		9,773
Home equity	1,815		20		98,143		815		99,958		835
Consumer and other	125		125		177,512		505		177,637		630
Total	$	22,577	$	654	$	6,482,451	$	74,088	$	6,505,028	$	74,742

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Derivatives and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]

The following table presents the fair value of the Company’s derivative financial instruments as well as their classification on the consolidated balance sheets as of June 30, 2018 and December 31, 2017:

	June 30, 2018							December 31, 2017
	Asset derivatives			Liability derivatives				Asset derivatives			Liability derivatives
	Balance sheet location	Fair value (1)		Balance sheet location	Fair value (1)			Balance sheet location	Fair value (1)		Balance sheet location	Fair value (1)
	(In thousands)
Derivatives designated as hedging instruments:
Interest rate products	Other assets	$	1,197	Other liabilities	$	—		Other assets	$	555	Other liabilities	$	(80	)
Derivatives not designated as hedging instruments:
Interest rate products	Other assets	26,865		Other liabilities	(27,290		)	Other assets	18,575		Other liabilities	(18,953		)
Foreign exchange contracts	Other assets	1		Other liabilities	(1		)	Other assets	2		Other liabilities	(2		)
Risk participation agreements	Other assets	24		Other liabilities	(113		)	Other assets	1		Other liabilities	(108		)
Total		$	28,087		$	(27,404	)		$	19,133		$	(19,143	)

_____________________

(1) For additional details, see Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 5: Fair Value Measurements.”

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block]

The following tables present the effect of the Company’s derivative financial instruments on accumulated other comprehensive income for the three and six months ended June 30, 2018 and 2017:

Derivatives in cash flow hedging relationships	Amount of gain or (loss) recognized in OCI on derivatives (1)					Location of (gain) or loss reclassified from accumulated OCI into income	Amount of (gain) or loss reclassified from accumulated OCI into income
	Three months ended June 30,						Three months ended June 30,
	2018		2017				2018			2017
	(In thousands)						(In thousands)
Interest rate products	$	175	$	(425	)	Interest expense	$	(263	)	$	357
Total	$	175	$	(425	)		$	(263	)	$	357

____________________

(1) There was an additional $2 thousand gain related to the ineffective portion for the three months ended as of June 30, 2017.

Derivatives in cash flow hedging relationships	Amount of gain or (loss) recognized in OCI on derivatives (1)					Location of (gain) or loss reclassified from accumulated OCI into income	Amount of (gain) or loss reclassified from accumulated OCI into income
	Six months ended June 30,						Six months ended June 30,
	2018		2017				2018			2017
	(In thousands)						(In thousands)
Interest rate products	$	1,011	$	(358	)	Interest expense	$	(284	)	$	660
Total	$	1,011	$	(358	)		$	(284	)	$	660

____________________

(1) There was an additional $(2) thousand loss related to the ineffective portion for the six months ended as of June 30, 2017. The guidance in ASU 2017-12 requires that amounts in accumulated other comprehensive income that are included in the assessment of effectiveness should be reclassified into earnings in the same period in which the hedged forecasted transactions impact earnings. Transition guidance for this ASU further states that upon adoption, previously recorded cumulative ineffectiveness for cash flow hedges existing at the adoption date be eliminated by means of a cumulative-effect adjustment to accumulated other comprehensive income with a corresponding adjustment to the opening balance of retained earnings as of the initial application date. There was a $5 thousand reclassification related to the adoption of ASU 2017-12 effective January 1, 2018.

Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) [Table Text Block]

The following table presents the effect of the Company’s derivative financial instruments in the consolidated statements of operations for the three and six months ended June 30, 2018 and 2017:

	Location of (gain) or loss reclassified from accumulated OCI into income	Amount of (gain) or loss recognized in income on cash flow hedging relationships				Amount of (gain) or loss recognized in income on cash flow hedging relationships
		Three months ended June 30,				Six months ended June 30,
		2018			2017	2018			2017
		(In thousands)
Total amounts of (income) and expense line items presented in the statement of operations in which the effects of fair value or cash flow hedges are recorded	Interest expense	$	(263	)	n/a	$	(284	)	n/a
The effects of cash flow hedging:
(Gain) or loss on cash flow hedging relationships in ASC 815 Derivatives and Hedging, Subtopic 20 Hedging - general
Interest contracts - amount of (gain) or loss reclassified from accumulated other comprehensive income into income	Interest expense	$	(263	)	n/a	$	(284	)	n/a

Derivatives Not Designated as Hedging Instruments [Table Text Block]

The following table presents the effect of the Bank’s derivative financial instruments not designated as hedging instruments in the consolidated statement of operations for the three and six months ended June 30, 2018 and 2017.

		Amount of gain or (loss), net, recognized in income on derivatives
Derivatives not designated as hedging instruments	Location of gain or (loss) recognized in income on derivatives	Three months ended June 30,						Six months ended June 30,
		2018			2017			2018			2017
		(In thousands)
Interest rate products	Other income/ (expense)	$	(139	)	$	(324	)	$	(47	)	$	(646	)
Risk participation agreements	Other income/ (expense)	47			320			213			320
Total		$	(92	)	$	(4	)	$	166		$	(326	)

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Income Taxes (Tables)

6 Months Ended

Jun. 30, 2018

Income Tax Disclosure [Abstract]

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

The following table presents the components of income tax expense for continuing operations, discontinued operations, noncontrolling interests and the Company:

	Six months ended June 30,
	2018			2017
	(In thousands)
Income from continuing operations:
Income before income taxes	$	52,867		$	55,005
Income tax expense	23,425			16,516
Net income from continuing operations	$	29,442		$	38,489
Effective tax rate, continuing operations	44.3		%	30.0		%
Income from discontinued operations:
Income before income taxes	$	2,388		$	4,606
Income tax expense	692			1,911
Net income from discontinued operations	$	1,696		$	2,695
Effective tax rate, discontinued operations	29.0		%	41.5		%
Less: Income attributable to noncontrolling interests:
Income before income taxes	$	2,018		$	2,116
Income tax expense	—			—
Net income attributable to noncontrolling interests	$	2,018		$	2,116
Effective tax rate, noncontrolling interests	—		%	—		%
Income attributable to the Company
Income before income taxes	$	53,237		$	57,495
Income tax expense	24,117			18,427
Net income attributable to the Company	$	29,120		$	39,068
Effective tax rate attributable to the Company	45.3		%	32.0		%

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Noncontrolling Interests (Tables)

6 Months Ended

Jun. 30, 2018

Noncontrolling Interest [Abstract]

Redeemable Noncontrolling Interest [Table Text Block]

The following table presents, by affiliate, the noncontrolling interests included as redeemable noncontrolling interests and noncontrolling interests in mezzanine and permanent equity, respectively, at the periods indicated:

	June 30, 2018		December 31, 2017
	(In thousands)
Anchor (1)	$	—	$	9,761
BOS	8,352		8,057
DGHM (2)	4,391		4,829
Total	$	12,743	$	22,647
Redeemable noncontrolling interests	$	10,747	$	17,461
Noncontrolling interests	$	1,996	$	5,186

_____________________

(1) Assets and liabilities at Anchor were classified as held for sale on the Company’s consolidated balance sheets at December 31, 2017. The Company completed the sale of Anchor in April 2018.

(2)    Only includes redeemable noncontrolling interests.

Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Table Text Block]

The following tables present a rollforward of the Company’s redeemable noncontrolling interests and noncontrolling interests for the periods indicated:

	Three months ended						Six months ended
	June 30, 2018						June 30, 2018
	Redeemable noncontrolling interests			Noncontrolling interests			Redeemable noncontrolling interests			Noncontrolling interests
	(In thousands)
Noncontrolling interests at beginning of period	$	16,322		$	4,825		$	17,461		$	5,186
Net income attributable to noncontrolling interests	732			236			1,491			527
Distributions	(712		)	(227		)	(1,449		)	(509		)
Purchases/ (sales) of ownership interests	(6,520		)	(3,051		)	(6,353		)	(3,051		)
Amortization of equity compensation	126			—			248			161
Adjustments to fair value	799			213			(651		)	(318		)
Noncontrolling interests at end of period	$	10,747		$	1,996		$	10,747		$	1,996

	Three months ended						Six months ended
	June 30, 2017						June 30, 2017
	Redeemable noncontrolling interests			Noncontrolling interests			Redeemable noncontrolling interests			Noncontrolling interests
	(In thousands)
Noncontrolling interests at beginning of period	$	17,232		$	3,993		$	16,972		$	4,161
Net income attributable to noncontrolling interests	859			291			1,583			533
Distributions	(842		)	(284		)	(1,545		)	(519		)
Purchases/ (sales) of ownership interests	66			—			132			—
Amortization of equity compensation	102			250			204			506
Adjustments to fair value	(201		)	125			(130		)	(306		)
Noncontrolling interests at end of period	$	17,216		$	4,375		$	17,216		$	4,375

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Accumulated Other Comprehensive Income (Tables)

6 Months Ended

Jun. 30, 2018

Accumulated Other Comprehensive Income [Abstract]

Reclassification out of Accumulated Other Comprehensive Income [Table Text Block]

The following table presents a summary of the amounts reclassified from accumulated other comprehensive income/ (loss) for the three and six months ended June 30, 2018 and 2017:

Description of component of accumulated other comprehensive income/ (loss)	Three months ended June 30,						Six months ended June 30,						Affected line item in Statement of Operations
	2018			2017			2018			2017
	(In thousands)						(In thousands)
Adjustment for realized (gains)/ losses on available-for-sale securities, net:
Pre-tax	$	—		$	(237	)	$	—		$	(256	)	(Gain)/ loss on sale of investments, net
Tax expense/ (benefit)	—			96			—			104			Income tax expense/ (benefit)
Net	$	—		$	(141	)	$	—		$	(152	)	Net (income)/ loss attributable to the Company
Net realized (gain)/ loss on cash flow hedges:
Hedges related to deposits and borrowings:
Pre-tax	$	(263	)	$	357		$	(284	)	$	660		Interest (income)/ expense on deposits and borrowings
Pre-tax	—			(2		)	—			1			Other (income)/ expense
Tax expense/ (benefit)	76			(149		)	83			(275		)	Income tax expense/ (benefit)
Net	$	(187	)	$	206		$	(201	)	$	386		Net (income)/ loss attributable to the Company
Total reclassifications for the period, net of tax	$	(187	)	$	65		$	(201	)	$	234

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

On January 1, 2018, the Company elected to early adopt ASU No. 2017-12. As a result, the Company reclassified unrealized losses on cash flow hedges of $5 thousand from accumulated other comprehensive income/ (loss) to beginning retained earnings.

On January 1, 2018, the Company adopted ASU No. 2016-01. As a result, the Company reclassified unrealized gains on equity securities available-for-sale, net of tax, of $339 thousand from accumulated other comprehensive income/ (loss) to beginning retained earnings.

	Components of accumulated other comprehensive income/ (loss)
	Unrealized gain/ (loss) on securities available-for-sale			Unrealized gain/ (loss) on cash flow hedges			Unrealized gain/ (loss) on other			Accumulated other comprehensive income/ (loss)
	(In thousands)
Balance at December 31, 2016	$	(11,194	)	$	(605	)	$	(749	)	$	(12,548	)
Other comprehensive income/ (loss) before reclassifications	6,474			(210		)	12			6,276
Amounts reclassified from other comprehensive income/ (loss)	(152		)	386			—			234
Other comprehensive income/ (loss), net	6,322			176			12			6,510
Balance at June 30, 2017	$	(4,872	)	$	(429	)	$	(737	)	$	(6,038	)
Balance at December 31, 2017	$	(8,140	)	$	332		$	(850	)	$	(8,658	)
Other comprehensive income/ (loss) before reclassifications	(14,848		)	712			1			(14,135		)
Amounts reclassified from other comprehensive income/ (loss)	—			(201		)	—			(201		)
Other comprehensive income/ (loss), net	(14,848		)	511			1			(14,336		)
Reclassification due to the adoption of ASUs 2017-12 and 2016-01	(339		)	5			—			(334		)
Balance at June 30, 2018	$	(23,327	)	$	848		$	(849	)	$	(23,328	)

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Restructuring (Tables)

6 Months Ended

Jun. 30, 2018

Restructuring and Related Activities [Abstract]

Schedule of Restructuring Reserve by Type of Cost [Table Text Block]

The following table presents a summary of the restructuring activity for the three and six months ended June 30, 2018 and 2017:

	Severance Charges			Total
	(In thousands)
Accrued charges at December 31, 2017	$	337		$	337
Costs paid	(254		)	(254		)
Accrued charges at March 31, 2018	83			83
Costs paid	(83		)	(83		)
Accrued charges at June 30, 2018	$	—		$	—
Accrued charges at December 31, 2016	$	1,977		$	1,977
Costs paid	(618		)	(618		)
Accrued charges at March 31, 2017	1,359			1,359
Costs paid	(335		)	(335		)
Accrued charges at June 30, 2017	$	1,024		$	1,024

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Basis of Presentation and Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Jan. 01, 2018	Dec. 31, 2017
Disposal Group, Including Discontinued Operation, Assets, Current						$ 58,800
Disposal Group, Including Discontinued Operation, Liabilities, Current						$ 3,200
Cumulative Effect of New Accounting Principle in Period of Adoption					$ (5)
Reclassification due to change in accounting principles			$ 0
Accounting Standards Update 2017-12 [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption					(5)
Accounting Standards Update 2017-07 [Member]
Prior Period Reclassification Adjustment		$ 181		$ 341
Reclassification due to change in accounting principles	$ 145		$ 280
Accounting Standards Update 2016-01 [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption					$ 339

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Earnings Per Share Basic Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income from continuing operations		$ 7,404	$ 23,493	$ 29,442	$ 38,489
Less: Net Income (Loss) Attributable to Noncontrolling Interest		968	1,150	2,018	2,116
Income (Loss) from Continuing Operations Attributable to Parent		6,436	22,343	27,424	36,373
Decrease/ (increase) in noncontrolling interests' redemption values (1)	[1]	(408)	292	438	(5)
Dividends on preferred stock	[2]	3,116	869	3,985	1,738
Total adjustments to income attributable to common shareholders		3,524	577	3,547	1,743
Net income from continuing operations attributable to common shareholders, treasury stock method		2,912	21,766	23,877	34,630
Net income from discontinued operations		(2)	1,063	1,696	2,695
Net income attributable to common shareholders, treasury stock method		$ 2,910	$ 22,829	$ 25,573	$ 37,325
Income (Loss) from Continuing Operations, Per Basic Share		$ 0.03	$ 0.27	$ 0.29	$ 0.42
Income (Loss) from Discontinued Operations, Net of Tax, Per Basic Share		0.00	0.01	0.02	0.03
Earnings Per Share, Basic		$ 0.03	$ 0.28	$ 0.31	$ 0.45
Series D Preferred Stock [Member]
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Total adjustments to income attributable to common shareholders		$ 2,200		$ 2,200
Common Stock [Member]
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Weighted Average Basic Common Shares Outstanding		83,509,115	82,298,493	83,304,573	82,125,795

[1] See Part II. Item 8. “Financial Statements and Supplementary Data - Note 14: Noncontrolling Interests” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 for a description of the redemption values related to the redeemable noncontrolling interests. In accordance with the FASB Accounting Standards Codification (“ASC”) 480, Distinguishing Liabilities from Equity (“ASC 480”), an increase in redemption value from period to period reduces income attributable to common shareholders. Decreases in redemption value from period to period increase income attributable to common shareholders, but only to the extent that the cumulative change in redemption value remains a cumulative increase since adoption of this standard in the first quarter of 2009.

[2] Consideration paid in excess of carrying value for the redemption of the 6.95% Non-Cumulative Perpetual Preferred Stock, Series D (“the Series D preferred stock”) of $2.2 million is considered a deemed dividend and, for purposes of calculating EPS, reduces net income attributable to common shareholders for the three and six month ended June 30, 2018.

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Earnings Per Share Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Net income from continuing operations attributable to common shareholders, after assumed dilution		$ 2,912	$ 21,766	$ 23,877	$ 34,630
Net income from discontinued operations		(2)	1,063	1,696	2,695
Net income attributable to common shareholders, after assumed dilution		$ 2,910	$ 22,829	$ 25,573	$ 37,325
Income (Loss) from Continuing Operations, Per Diluted Share		$ 0.03	$ 0.26	$ 0.28	$ 0.41
Income (Loss) from Discontinued Operations, Net of Tax, Per Diluted Share		0.00	0.01	0.02	0.03
Earnings Per Share, Diluted		0.03	0.27	0.30	0.44
Common Stock, Dividends, Per Share, Cash Paid		$ 0.12	$ 0.11	$ 0.24	$ 0.22
Common Stock [Member]
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Weighted Average Basic Common Shares Outstanding		83,509,115	82,298,493	83,304,573	82,125,795
Stock options, performance-based and time-based restricted stock, and performance-based and time-based restricted stock units, and other dilutive securities (3)	[1]	1,076,049	1,338,939	1,112,938	1,394,605
Warrants to purchase common stock (3)	[1]	828,411	1,104,248	804,463	1,137,909
Weighted Average Number Diluted Shares Outstanding Adjustment		1,904,460	2,443,187	1,917,401	2,532,514
Weighted average diluted common shares outstanding (3)	[1]	85,413,575	84,741,680	85,221,974	84,658,309

[1] The diluted EPS computations for the three and six months ended June 30, 2018 and 2017 do not assume the conversion, exercise, or contingent issuance of the following shares for the following periods because the result would have been anti-dilutive for the periods indicated. As a result of the anti-dilution, the potential common shares excluded from the diluted EPS computation are as follows: Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017Shares excluded due to exercise price exceeding the average market price of common shares during the period (total outstanding):(In thousands)Potential common shares from: Stock options16 54 136 87Total shares excluded due to exercise price exceeding the average market price of common shares during the period16 54 136 87

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Earnings Per Share Securities Excluded Due to Exercise Price Exceeding Average Price During Period (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Shares Excluded Due to Exercise Price Exceeding Average Price During Period [Line Items]
Shares Excluded Due to Exercise Price Exceeding Average Price During Period	16	54	136	87
Outstanding Stock Awards [Member]
Shares Excluded Due to Exercise Price Exceeding Average Price During Period [Line Items]
Shares Excluded Due to Exercise Price Exceeding Average Price During Period	16	54	136	87

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Reportable Segments (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Segment Reporting Information [Line Items]
Interest Income (Expense), Net		$ 57,545	$ 57,145	$ 114,928	$ 110,787
Total fees and other income		32,095	38,018	71,838	74,524
Revenues		89,640	95,163	186,766	185,311
Provision/ (credit) for loan losses		453	(6,114)	(1,342)	(6,295)
Noninterest Expense		64,384	67,821	135,241	136,601
Income before income taxes		24,803	33,456	52,867	55,005
Income tax expense		17,399	9,963	23,425	16,516
Net income from continuing operations		7,404	23,493	29,442	38,489
Net Income (Loss) Attributable to Noncontrolling Interest		968	1,150	2,018	2,116
Net income from discontinued operations		(2)	1,063	1,696	2,695
Net income attributable to the Company		6,434	23,406	29,120	39,068
Total assets		8,716,203	8,107,646	8,716,203	8,107,646	$ 8,311,744
Amortization of intangibles		749	1,426	1,499	2,852
Depreciation		2,561	1,980	4,663	3,980
Private Banking Segment [Member]
Segment Reporting Information [Line Items]
Interest Income (Expense), Net		58,447	57,783	116,578	112,039
Total fees and other income		2,825	2,634	5,300	4,462
Revenues		61,272	60,417	121,878	116,501
Provision/ (credit) for loan losses		453	(6,114)	(1,342)	(6,295)
Noninterest Expense		39,670	36,904	79,297	71,962
Income before income taxes		21,149	29,627	43,923	50,834
Income tax expense		3,981	9,209	8,594	15,478
Net income from continuing operations		17,168	20,418	35,329	35,356
Net income attributable to the Company		17,168	20,418	35,329	35,356
Total assets		8,637,774	7,951,911	8,637,774	7,951,911
Depreciation		2,031	1,343	3,615	2,714
Wealth Management and Trust Segment [Member]
Segment Reporting Information [Line Items]
Total fees and other income		11,293	11,274	23,567	22,195
Noninterest Expense		11,058	11,937	21,752	25,810
Income before income taxes		235	(663)	1,815	(3,615)
Income tax expense		34	(239)	509	(1,405)
Net income from continuing operations		201	(424)	1,306	(2,210)
Net income attributable to the Company		201	(424)	1,306	(2,210)
Total assets		73,202	74,842	73,202	74,842
Amortization of intangibles		701	727	1,402	1,454
Depreciation		334	341	655	678
Investment Managers Segment [Member]
Segment Reporting Information [Line Items]
Interest Income (Expense), Net	[1]	2	4	6	8
Total fees and other income	[1]	4,234	11,091	15,642	21,950
Revenues	[1]	4,236	11,095	15,648	21,958
Noninterest Expense	[1]	3,120	8,346	11,645	16,700
Income before income taxes	[1]	1,116	2,749	4,003	5,258
Income tax expense	[1]	249	894	920	1,738
Net income from continuing operations	[1]	867	1,855	3,083	3,520
Net Income (Loss) Attributable to Noncontrolling Interest	[1]	202	512	690	974
Net income attributable to the Company	[1]	665	1,343	2,393	2,546
Total assets	[1]	7,189	91,915	7,189	91,915
Amortization of intangibles	[1]	0	651	0	1,301
Depreciation	[1]	32	61	66	127
Wealth Advisors Segment [Member]
Segment Reporting Information [Line Items]
Interest Income (Expense), Net		77	29	125	46
Total fees and other income		13,717	12,980	27,256	25,823
Revenues		13,794	13,009	27,381	25,869
Noninterest Expense		9,227	8,943	19,763	18,386
Income before income taxes		4,567	4,066	7,618	7,483
Income tax expense		1,214	1,511	2,000	2,798
Net income from continuing operations		3,353	2,555	5,618	4,685
Net Income (Loss) Attributable to Noncontrolling Interest		766	638	1,328	1,142
Net income attributable to the Company		2,587	1,917	4,290	3,543
Total assets		76,175	75,247	76,175	75,247
Amortization of intangibles		48	48	97	97
Depreciation		164	235	327	461
Holding Company and Eliminations Segment [Member]
Segment Reporting Information [Line Items]
Interest Income (Expense), Net		(981)	(671)	(1,781)	(1,306)
Total fees and other income		26	39	73	94
Revenues		(955)	(632)	(1,708)	(1,212)
Noninterest Expense		1,309	1,691	2,784	3,743
Income before income taxes		(2,264)	(2,323)	(4,492)	(4,955)
Income tax expense	[2]	11,921	(1,412)	11,402	(2,093)
Net income from continuing operations		(14,185)	(911)	(15,894)	(2,862)
Net income from discontinued operations		(2)	1,063	1,696	2,695
Net income attributable to the Company		(14,187)	152	(14,198)	(167)
Total assets		$ (78,137)	$ (86,269)	$ (78,137)	$ (86,269)

[1] Results for the Investment Management segment for the three and six months ended June 30, 2017 include results for DGHM and Anchor. Results for the Investment Management segment for the three and six months ended June 30, 2018 include results for DGHM and results for Anchor through its sale date in April 2018. Assets for the Investment Management Segment at June 30, 2017 include assets of DGHM and Anchor. Assets for the Investment Management segment at June 30, 2018 include assets of DGHM.

[2] Income tax expense/ (benefit) for the three and six months ended June 30, 2018 include $12.7 million in additional expense related to the sale of Anchor in April 2018.

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Reportable Segments Segments Text Disclosure (Details) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2018 USD ($)	Jun. 30, 2018 USD ($) segments
Segment Reporting Information [Line Items]
Number of Reportable Segments | segments		4
Income tax expense/ (benefit) related to sale of affiliate | $	$ 12.7	$ 12.7

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Investments Schedule of Available-for-sale and Held-to-Maturity Securities (Details) - USD ($) $ in Thousands		Jun. 30, 2018	Dec. 31, 2017
Debt Securities, Available-for-sale [Line Items]
Available-for-sale Securities, Amortized Cost Basis		$ 1,109,785	$ 1,182,427
Available-for-sale Securities, Gross Unrealized Gains		1,982	5,072
Available-for-sale Securities, Gross Unrealized Losses		(34,800)	(17,171)
Available-for-sale securities at fair value		1,076,967	1,170,328
Debt Securities, Held-to-maturity		78,955	74,576
Debt Securities, Held-to-maturity, Accumulated Unrecognized Gain		2	0
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss		(2,210)	(795)
Debt Securities, Held-to-maturity, Fair Value		76,747	73,781
US Government and Government Agencies and Authorities [Member]
Debt Securities, Available-for-sale [Line Items]
Available-for-sale Securities, Amortized Cost Basis		35,061	35,132
Available-for-sale Securities, Gross Unrealized Gains		0	0
Available-for-sale Securities, Gross Unrealized Losses		(1,361)	(833)
Available-for-sale securities at fair value		33,700	34,299
Debt Securities, Held-to-maturity		11,902
Debt Securities, Held-to-maturity, Accumulated Unrecognized Gain		2
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss		0
Debt Securities, Held-to-maturity, Fair Value		11,904
US Government-sponsored Enterprises Debt Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Available-for-sale Securities, Amortized Cost Basis		275,881	305,101
Available-for-sale Securities, Gross Unrealized Gains		0	22
Available-for-sale Securities, Gross Unrealized Losses		(6,277)	(2,622)
Available-for-sale securities at fair value		269,604	302,501
Municipal Bonds [Member]
Debt Securities, Available-for-sale [Line Items]
Available-for-sale Securities, Amortized Cost Basis		297,257	299,647
Available-for-sale Securities, Gross Unrealized Gains		1,722	4,559
Available-for-sale Securities, Gross Unrealized Losses		(3,790)	(1,148)
Available-for-sale securities at fair value		295,189	303,058
Mortgage Backed Securities, Other [Member]
Debt Securities, Available-for-sale [Line Items]
Available-for-sale Securities, Amortized Cost Basis	[1]	493,644	521,753
Available-for-sale Securities, Gross Unrealized Gains	[1]	260	491
Available-for-sale Securities, Gross Unrealized Losses	[1]	(23,372)	(12,568)
Available-for-sale securities at fair value	[1]	470,532	509,676
Debt Securities, Held-to-maturity	[1]	67,053	74,576
Debt Securities, Held-to-maturity, Accumulated Unrecognized Gain	[1]	0	0
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss	[1]	(2,210)	(795)
Debt Securities, Held-to-maturity, Fair Value	[1]	64,843	73,781
Other Aggregated Investments [Member]
Debt Securities, Available-for-sale [Line Items]
Available-for-sale Securities, Amortized Cost Basis		7,942	20,794
Available-for-sale Securities, Gross Unrealized Gains		0	0
Available-for-sale Securities, Gross Unrealized Losses		0	0
Available-for-sale securities at fair value		$ 7,942	$ 20,794

[1] All mortgage-backed securities are guaranteed by the U.S. government, U.S. government agencies, or government-sponsored entities.

XML

Investments Maturities of AFS Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, within One Year, Amortized Cost	$ 75,733
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after One Through Five Years, Amortized Cost	313,162
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after Five Through Ten Years, Amortized Cost	312,887
Debt Securities, Available-for-sale, Allocated and Single Maturity Date, Maturity, after 10 Years, Amortized Cost	408,003
Investment securities available for sale at amortized cost	1,109,785	$ 1,182,427
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, within One Year, Fair Value	75,473
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after One Through Five Years, Fair Value	306,903
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after Five Through Ten Years, Fair Value	298,202
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after 10 Years, Fair Value	396,389
Available-for-sale Securities	$ 1,076,967	$ 1,170,328

XML

Investments Maturities of HTM Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Schedule of Held-to-maturity Securities [Line Items]
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, within One Year, Amortized Cost	$ 11,902
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, after One Through Five Years, Amortized Cost	0
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, after Five Through Ten Years, Amortized Cost	33,063
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, after 10 Years, Amortized Cost	33,990
Debt Securities, Held-to-maturity	78,955	$ 74,576
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, within One Year, Fair Value	11,904
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, after One Through Five Years, Fair Value	0
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, after Five Through Ten Years, Fair Value	32,020
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, after 10 Years, Fair Value	32,823
Debt Securities, Held-to-maturity, Fair Value	$ 76,747	$ 73,781

XML

Investments Realized gains and losses from sales of AFS Investments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Jan. 01, 2018
Gain (Loss) on Securities [Line Items]
Cumulative Effect of New Accounting Principle in Period of Adoption					$ (5)
Proceeds from Sale of Available-for-sale Securities	$ 19,673	$ 70,314	$ 35,550	$ 103,031
Available-for-sale Securities, Gross Realized Gains	0	255	7	274
Available-for-sale Securities, Gross Realized Losses	0	$ (18)	(1)	$ (18)
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, before Tax	$ 7		$ (23)
Accounting Standards Update 2016-01 [Member]
Gain (Loss) on Securities [Line Items]
Cumulative Effect of New Accounting Principle in Period of Adoption					339
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | Accounting Standards Update 2016-01 [Member]
Gain (Loss) on Securities [Line Items]
Cumulative Effect of New Accounting Principle in Period of Adoption					$ 339

XML

Investments Investment Securities in Unrealized Loss Position (Details) $ in Thousands	Jun. 30, 2018 USD ($) securities		Dec. 31, 2017 USD ($) securities
Debt Securities, Available-for-sale [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	$ 453,440		$ 378,406
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses	(9,078)		(2,463)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	488,716		495,297
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses	(25,722)		(14,708)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	942,156		873,703
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses	$ 34,800		$ 17,171
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | securities	253		208
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value	$ 48,598		$ 59,218
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(1,643)		(534)
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value	16,245		14,563
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(567)		(261)
Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value	64,843		73,781
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss	$ (2,210)		$ (795)
Held-to-maturity, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | securities	16		16
US Government and Government Agencies and Authorities [Member]
Debt Securities, Available-for-sale [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	$ 9,861		$ 14,902
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses	(114)		(79)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	23,839		19,397
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses	(1,247)		(754)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	33,700		34,299
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses	$ 1,361		$ 833
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | securities	6		6
US Government-sponsored Enterprises Debt Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	$ 212,331		$ 220,275
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses	(4,038)		(1,350)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	57,273		38,273
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses	(2,239)		(1,272)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	269,604		258,548
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses	$ 6,277		$ 2,622
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | securities	40		36
Municipal Bonds [Member]
Debt Securities, Available-for-sale [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	$ 132,307		$ 46,112
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses	(1,526)		(131)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	49,256		50,842
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses	(2,264)		(1,017)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	181,563		96,954
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses	$ 3,790		$ 1,148
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | securities	95		63
Mortgage Backed Securities, Other [Member]
Debt Securities, Available-for-sale [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	$ 98,941	[1]	$ 97,117	[2]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses	(3,400)	[1]	(903)	[2]
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	358,348	[1]	386,785	[2]
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses	(19,972)	[1]	(11,665)	[2]
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	457,289	[1]	483,902	[2]
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses	$ 23,372	[1]	$ 12,568	[2]
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | securities	112	[1]	103	[2]
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value	$ 48,598	[1]	$ 59,218	[2]
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(1,643)	[1]	(534)	[2]
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value	16,245	[1]	14,563	[2]
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(567)	[1]	(261)	[2]
Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value	64,843	[1]	73,781	[2]
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss	$ (2,210)	[1]	$ (795)	[2]
Held-to-maturity, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | securities	16	[1]	16	[2]

[1] All mortgage-backed securities are guaranteed by the U.S. government, U.S. government agencies, or government-sponsored entities.

[2] All mortgage-backed securities are guaranteed by the U.S. government, U.S. government agencies, or government-sponsored entities.

XML

Investments Other Investment Disclosures (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Investments, Other Disclosures [Abstract]
Cost Method Investments, Additional Information	0	0
Amortization Method Qualified Affordable Housing Project Investments	$ 46.0	$ 39.4

XML

Fair Value Measurements Fair Value Recurring Basis (Details) - USD ($) $ in Thousands		Jun. 30, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities		$ 1,076,967	$ 1,170,328
US Government and Government Agencies and Authorities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities		33,700	34,299
US Government-sponsored Enterprises Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities		269,604	302,501
Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities		295,189	303,058
Mortgage Backed Securities, Other [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	[1]	470,532	509,676
Other Aggregated Investments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities		7,942	20,794
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities		1,076,967	1,170,328
Alternative Investment		7,392	7,062
Financial and Nonfinancial Liabilities, Fair Value Disclosure		7,392	7,062
Fair Value, Measurements, Recurring [Member] | Designated as Hedging Instrument [Member] | Interest Rate Swap [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets		1,197	555
Derivative Financial Instruments, Liabilities, Fair Value Disclosure			80
Fair Value, Measurements, Recurring [Member] | Not Designated as Hedging Instrument [Member] | Interest Rate Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets		26,865	18,575
Derivative Financial Instruments, Liabilities, Fair Value Disclosure		27,290	18,953
Fair Value, Measurements, Recurring [Member] | Not Designated as Hedging Instrument [Member] | Loan Participations and Assignments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets		24	1
Derivative Financial Instruments, Liabilities, Fair Value Disclosure		113	108
Fair Value, Measurements, Recurring [Member] | Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets		1	2
Derivative Financial Instruments, Liabilities, Fair Value Disclosure		1	2
Fair Value, Measurements, Recurring [Member] | US Government and Government Agencies and Authorities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities		33,700	34,299
Fair Value, Measurements, Recurring [Member] | US Government-sponsored Enterprises Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities		269,604	302,501
Fair Value, Measurements, Recurring [Member] | Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities		295,189	303,058
Fair Value, Measurements, Recurring [Member] | Mortgage Backed Securities, Other [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities		470,532	509,676
Fair Value, Measurements, Recurring [Member] | Other Aggregated Investments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities		7,942	20,794
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities		41,512	54,890
Alternative Investment		7,392	7,062
Financial and Nonfinancial Liabilities, Fair Value Disclosure		7,392	7,062
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Designated as Hedging Instrument [Member] | Interest Rate Swap [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets		0	0
Derivative Financial Instruments, Liabilities, Fair Value Disclosure			0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Not Designated as Hedging Instrument [Member] | Interest Rate Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets		0	0
Derivative Financial Instruments, Liabilities, Fair Value Disclosure		0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Not Designated as Hedging Instrument [Member] | Loan Participations and Assignments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets		0	0
Derivative Financial Instruments, Liabilities, Fair Value Disclosure		0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets		0	0
Derivative Financial Instruments, Liabilities, Fair Value Disclosure		0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | US Government and Government Agencies and Authorities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities		33,570	34,096
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | US Government-sponsored Enterprises Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities		0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities		0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Mortgage Backed Securities, Other [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities		0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Other Aggregated Investments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities		7,942	20,794
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities		1,035,455	1,115,438
Alternative Investment		0	0
Financial and Nonfinancial Liabilities, Fair Value Disclosure		0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Designated as Hedging Instrument [Member] | Interest Rate Swap [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets		1,197	555
Derivative Financial Instruments, Liabilities, Fair Value Disclosure			80
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Not Designated as Hedging Instrument [Member] | Interest Rate Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets		26,865	18,575
Derivative Financial Instruments, Liabilities, Fair Value Disclosure		27,290	18,953
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Not Designated as Hedging Instrument [Member] | Loan Participations and Assignments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets		24	1
Derivative Financial Instruments, Liabilities, Fair Value Disclosure		113	108
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets		1	2
Derivative Financial Instruments, Liabilities, Fair Value Disclosure		1	2
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | US Government and Government Agencies and Authorities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities		130	203
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | US Government-sponsored Enterprises Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities		269,604	302,501
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities		295,189	303,058
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Mortgage Backed Securities, Other [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities		470,532	509,676
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Other Aggregated Investments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities		0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities		0	0
Alternative Investment		0	0
Financial and Nonfinancial Liabilities, Fair Value Disclosure		0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value		0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Designated as Hedging Instrument [Member] | Interest Rate Swap [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets		0	0
Derivative Financial Instruments, Liabilities, Fair Value Disclosure			0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Not Designated as Hedging Instrument [Member] | Interest Rate Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets		0	0
Derivative Financial Instruments, Liabilities, Fair Value Disclosure		0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Not Designated as Hedging Instrument [Member] | Loan Participations and Assignments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets		0	0
Derivative Financial Instruments, Liabilities, Fair Value Disclosure		0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Assets		0	0
Derivative Financial Instruments, Liabilities, Fair Value Disclosure		0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | US Government and Government Agencies and Authorities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities		0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | US Government-sponsored Enterprises Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities		0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities		0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Mortgage Backed Securities, Other [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities		0	0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Other Aggregated Investments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities		$ 0	$ 0

[1] All mortgage-backed securities are guaranteed by the U.S. government, U.S. government agencies, or government-sponsored entities.

XML

Fair Value Measurements Fair Value Nonrecurring Basis (Details) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2018	[1]	Jun. 30, 2017	[2]	Jun. 30, 2018	[1]	Jun. 30, 2017	[2]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans Receivable, Fair Value Disclosure	$ 3,051		$ 1,040		$ 3,051		$ 1,040
Loans Receivable, Fair Value Adjustment	(711)		(221)		(927)		(219)
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans Receivable, Fair Value Disclosure	0		0		0		0
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans Receivable, Fair Value Disclosure	0		0		0		0
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans Receivable, Fair Value Disclosure	$ 3,051		$ 1,040		$ 3,051		$ 1,040

[1] Collateral-dependent impaired loans held at June 30, 2018 that had write-downs in fair value or whose specific reserve changed during the first six months of 2018.

[2] Collateral-dependent impaired loans held at June 30, 2017 that had write-downs in fair value or whose specific reserve changed during the first six months of 2017.

XML

Fair Value Measurements Quantitiative Information about Level 3 Non-Recurring Assets (Details) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018		Jun. 30, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]
Loans Receivable, Fair Value Disclosure	$ 3,051	[1]	$ 1,040	[2]
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]
Loans Receivable, Fair Value Disclosure	$ 3,051	[1]	$ 1,040	[2]
Loans Receivable [Member] | Weighted Average [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]
Fair Value, non-recurring basis, weighted average unobservable input	9.00%		6.00%
Fair Value, non-recurring basis, weighted average appraisal adjustment	7.00%		16.00%
Loans Receivable [Member] | Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]
Fair Value, non-recurring basis, weighted average min discount rate	0.00%		0.00%
Fair Value, non-recurring basis, appraisal adj min rate	0.00%		0.00%
Loans Receivable [Member] | Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]
Fair Value, non-recurring basis, weighted average max discount rate	24.00%		7.00%
Fair Value, non-recurring basis, appraisal adj max rate	20.00%		20.00%

[1] Collateral-dependent impaired loans held at June 30, 2018 that had write-downs in fair value or whose specific reserve changed during the first six months of 2018.

[2] Collateral-dependent impaired loans held at June 30, 2017 that had write-downs in fair value or whose specific reserve changed during the first six months of 2017.

XML

Fair Value Measurements Not Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Securities, Held-to-maturity, Fair Value	$ 76,747	$ 73,781
Portion at Fair Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	364,539	120,541
Debt Securities, Held-to-maturity, Fair Value	76,747	73,781
Loans Held-for-sale, Fair Value Disclosure	4,691	4,737
Loans Receivable, Fair Value Disclosure	6,680,524	6,388,297
Other Assets, Fair Value Disclosure	104,264	93,449
Deposits, Fair Value Disclosure	6,617,149	6,509,197
Securities Loaned or Sold under Agreements to Repurchase, Fair Value Disclosure	58,824	32,169
Federal Funds Purchased, Fair Value Disclosure		30,000
Federal Home Loan Bank Borrowings, Fair Value Disclosure	1,053,066	692,402
Subordinated Debt Obligations, Fair Value Disclosure	96,363	96,363
Other Liabilities, Fair Value Disclosure	3,465	2,224
Portion at Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	364,539	120,541
Debt Securities, Held-to-maturity, Fair Value	11,904	0
Loans Held-for-sale, Fair Value Disclosure	0	0
Loans Receivable, Fair Value Disclosure	0	0
Other Assets, Fair Value Disclosure	0	0
Deposits, Fair Value Disclosure	0	0
Securities Loaned or Sold under Agreements to Repurchase, Fair Value Disclosure	0	0
Federal Funds Purchased, Fair Value Disclosure		0
Federal Home Loan Bank Borrowings, Fair Value Disclosure	0	0
Subordinated Debt Obligations, Fair Value Disclosure	0	0
Other Liabilities, Fair Value Disclosure	0	0
Portion at Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	0	0
Debt Securities, Held-to-maturity, Fair Value	64,843	73,781
Loans Held-for-sale, Fair Value Disclosure	4,691	4,737
Loans Receivable, Fair Value Disclosure	0	0
Other Assets, Fair Value Disclosure	104,264	93,449
Deposits, Fair Value Disclosure	6,617,149	6,509,197
Securities Loaned or Sold under Agreements to Repurchase, Fair Value Disclosure	58,824	32,169
Federal Funds Purchased, Fair Value Disclosure		30,000
Federal Home Loan Bank Borrowings, Fair Value Disclosure	1,053,066	692,402
Subordinated Debt Obligations, Fair Value Disclosure	0	0
Other Liabilities, Fair Value Disclosure	3,465	2,224
Portion at Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	0	0
Debt Securities, Held-to-maturity, Fair Value	0	0
Loans Held-for-sale, Fair Value Disclosure	0	0
Loans Receivable, Fair Value Disclosure	6,680,524	6,388,297
Other Assets, Fair Value Disclosure	0	0
Deposits, Fair Value Disclosure	0	0
Securities Loaned or Sold under Agreements to Repurchase, Fair Value Disclosure	0	0
Federal Funds Purchased, Fair Value Disclosure		0
Federal Home Loan Bank Borrowings, Fair Value Disclosure	0	0
Subordinated Debt Obligations, Fair Value Disclosure	96,363	96,363
Other Liabilities, Fair Value Disclosure	0	0
Reported Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	364,539	120,541
Debt Securities, Held-to-maturity, Fair Value	78,955	74,576
Loans Held-for-sale, Fair Value Disclosure	4,622	4,697
Loans Receivable, Fair Value Disclosure	6,693,659	6,430,286
Other Assets, Fair Value Disclosure	104,264	93,449
Deposits, Fair Value Disclosure	6,620,179	6,510,246
Securities Loaned or Sold under Agreements to Repurchase, Fair Value Disclosure	58,824	32,169
Federal Funds Purchased, Fair Value Disclosure		30,000
Federal Home Loan Bank Borrowings, Fair Value Disclosure	1,056,938	693,681
Subordinated Debt Obligations, Fair Value Disclosure	106,363	106,363
Other Liabilities, Fair Value Disclosure	$ 3,465	$ 2,224

XML

Fair Value Measurements Fair Value Text (Details)	Dec. 31, 2017 USD ($)
Portion at Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
US Government Securities, at Carrying Value	$ 0

XML

Loan Portfolio and Credit Quality Loans by Portfolio Segment (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 6,767,123	$ 6,505,028
Commercial and industrial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	583,193	520,992
Commercial Tax Exempt [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	438,882	418,698
Commercial and Industrial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	1,022,075	939,690
Commercial real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	2,504,521	2,440,220
Construction and land [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	172,024	164,990
Residential [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	2,808,206	2,682,533
Home equity [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	91,801	99,958
Consumer and other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 168,496	$ 177,637

XML

Loan Portfolio and Credit Quality Nonaccrual Loans by Class of Financing Receivable (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	$ 15,651	$ 14,295
Commercial and industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	1,412	748
Commercial Tax Exempt [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	0	0
Commercial and Industrial Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	1,412	748
Commercial real estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	1,838	1,985
Construction and land [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	0	110
Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	9,610	8,470
Home equity [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	2,789	2,840
Consumer and other [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	$ 2	$ 142

XML

Loan Portfolio and Credit Quality Loans by Past Due Status (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	$ 4,977	$ 25,048
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing	0	0
Financing Receivable, Recorded Investment, Nonaccrual Status	15,651	14,295
Financing Receivable, Recorded Investment, Current	6,746,495	6,465,685
Total loans	6,767,123	6,505,028
Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	994	22,564
Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	3,983	2,484
Financing Receivables, 1 to 29 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	2,970	1,340
Financing Receivables, 30 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	1,068	3,368
Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	11,613	9,587
Commercial and industrial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	521	11,752
Financing Receivable, Recorded Investment, Nonaccrual Status	1,412	748
Financing Receivable, Recorded Investment, Current	581,260	508,492
Total loans	583,193	520,992
Commercial and industrial [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	521	10,903
Commercial and industrial [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	0	849
Commercial and industrial [Member] | Financing Receivables, 1 to 29 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	367	355
Commercial and industrial [Member] | Financing Receivables, 30 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	203	0
Commercial and industrial [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	842	393
Commercial Tax Exempt [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	0	0
Financing Receivable, Recorded Investment, Nonaccrual Status	0	0
Financing Receivable, Recorded Investment, Current	438,882	418,698
Total loans	438,882	418,698
Commercial Tax Exempt [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	0	0
Commercial Tax Exempt [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	0	0
Commercial Tax Exempt [Member] | Financing Receivables, 1 to 29 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	0	0
Commercial Tax Exempt [Member] | Financing Receivables, 30 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	0	0
Commercial Tax Exempt [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	0	0
Commercial real estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	0	4,043
Financing Receivable, Recorded Investment, Nonaccrual Status	1,838	1,985
Financing Receivable, Recorded Investment, Current	2,502,683	2,434,192
Total loans	2,504,521	2,440,220
Commercial real estate [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	0	4,043
Commercial real estate [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	0	0
Commercial real estate [Member] | Financing Receivables, 1 to 29 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	0	163
Commercial real estate [Member] | Financing Receivables, 30 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	0	0
Commercial real estate [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	1,838	1,822
Construction and land [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	0	0
Financing Receivable, Recorded Investment, Nonaccrual Status	0	110
Financing Receivable, Recorded Investment, Current	172,024	164,880
Total loans	172,024	164,990
Construction and land [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	0	0
Construction and land [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	0	0
Construction and land [Member] | Financing Receivables, 1 to 29 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	0	0
Construction and land [Member] | Financing Receivables, 30 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	0	0
Construction and land [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	0	110
Residential [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	3,641	8,874
Financing Receivable, Recorded Investment, Nonaccrual Status	9,610	8,470
Financing Receivable, Recorded Investment, Current	2,794,955	2,665,189
Total loans	2,808,206	2,682,533
Residential [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	0	7,239
Residential [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	3,641	1,635
Residential [Member] | Financing Receivables, 1 to 29 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	2,603	805
Residential [Member] | Financing Receivables, 30 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	800	3,172
Residential [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	6,207	4,493
Home equity [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	812	355
Financing Receivable, Recorded Investment, Nonaccrual Status	2,789	2,840
Financing Receivable, Recorded Investment, Current	88,200	96,763
Total loans	91,801	99,958
Home equity [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	473	355
Home equity [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	339	0
Home equity [Member] | Financing Receivables, 1 to 29 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	0	0
Home equity [Member] | Financing Receivables, 30 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	65	71
Home equity [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	2,724	2,769
Consumer and other [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	3	24
Financing Receivable, Recorded Investment, Nonaccrual Status	2	142
Financing Receivable, Recorded Investment, Current	168,491	177,471
Total loans	168,496	177,637
Consumer and other [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	0	24
Consumer and other [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	3	0
Consumer and other [Member] | Financing Receivables, 1 to 29 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	0	17
Consumer and other [Member] | Financing Receivables, 30 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	0	125
Consumer and other [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	$ 2	$ 0

XML

Loan Portfolio and Credit Quality Loans by Grade or Nonaccrual Status (Details) - USD ($) $ in Thousands		Jun. 30, 2018	Dec. 31, 2017
Financing Receivable, Recorded Investment [Line Items]
Total loans		$ 6,767,123	$ 6,505,028
Pass [Member] | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		6,652,571	6,350,207
Special Mention [Member] | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		53,448	87,174
Substandard [Member] | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	[1]	45,453	53,352
Substandard [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		15,651	14,295
Commercial and industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		583,193	520,992
Commercial and industrial [Member] | Pass [Member] | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		567,334	496,395
Commercial and industrial [Member] | Special Mention [Member] | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		6,845	12,898
Commercial and industrial [Member] | Substandard [Member] | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	[1]	7,602	10,951
Commercial and industrial [Member] | Substandard [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		1,412	748
Commercial Tax Exempt [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		438,882	418,698
Commercial Tax Exempt [Member] | Pass [Member] | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		438,882	413,139
Commercial Tax Exempt [Member] | Special Mention [Member] | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		0	5,559
Commercial Tax Exempt [Member] | Substandard [Member] | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	[1]	0	0
Commercial Tax Exempt [Member] | Substandard [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		0	0
Commercial real estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		2,504,521	2,440,220
Commercial real estate [Member] | Pass [Member] | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		2,426,821	2,346,833
Commercial real estate [Member] | Special Mention [Member] | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		46,603	56,947
Commercial real estate [Member] | Substandard [Member] | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	[1]	29,259	34,455
Commercial real estate [Member] | Substandard [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		1,838	1,985
Construction and land [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		172,024	164,990
Construction and land [Member] | Pass [Member] | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		164,760	146,514
Construction and land [Member] | Special Mention [Member] | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		0	11,770
Construction and land [Member] | Substandard [Member] | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	[1]	7,264	6,596
Construction and land [Member] | Substandard [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		0	110
Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		2,808,206	2,682,533
Residential [Member] | Pass [Member] | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		2,797,270	2,672,714
Residential [Member] | Special Mention [Member] | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		0	0
Residential [Member] | Substandard [Member] | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	[1]	1,326	1,349
Residential [Member] | Substandard [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		9,610	8,470
Home equity [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		91,801	99,958
Home equity [Member] | Pass [Member] | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		89,012	97,118
Home equity [Member] | Special Mention [Member] | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		0	0
Home equity [Member] | Substandard [Member] | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	[1]	0	0
Home equity [Member] | Substandard [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		2,789	2,840
Consumer and other [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		168,496	177,637
Consumer and other [Member] | Pass [Member] | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		168,492	177,494
Consumer and other [Member] | Special Mention [Member] | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		0	0
Consumer and other [Member] | Substandard [Member] | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	[1]	2	1
Consumer and other [Member] | Substandard [Member] | Nonperforming Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		$ 2	$ 142

[1] Accruing Classified includes both Substandard and Doubtful classifications.

XML

Loan Portfolio and Credit Quality Impaired Loans With and Without Related Allowance (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended		12 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	[1]	$ 15,402	$ 14,482	$ 15,402	$ 14,482	$ 14,491
Impaired Financing Receivable, with Related Allowance, Recorded Investment	[1]	8,314	9,535	8,314	9,535	8,086
Impaired Financing Receivable, Recorded Investment	[1]	23,716	24,017	23,716	24,017	22,577
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance		18,464	19,345	18,464	19,345	17,288
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance		8,843	9,964	8,843	9,964	8,640
Impaired Financing Receivable, Unpaid Principal Balance		27,307	29,309	27,307	29,309	25,928
Impaired Financing Receivable, Related Allowance		1,000	981	1,000	981	654
Impaired Financing Receivable, Related Allowance		1,000	981	1,000	981	654
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment		16,967	15,860	15,907	16,525	15,311
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment		6,830	9,661	7,325	10,391	9,651
Impaired Financing Receivable, Average Recorded Investment		23,797	25,521	23,232	26,916	24,962
Impaired Financing Receivable, with No Related Allowance, Interest Income, Cash Basis Method		157	894	301	1,254	2,036
Impaired Financing Receivable, with Related Allowance, Interest Income, Cash Basis Method		78	119	245	233	416
Impaired Financing Receivable, Interest Income, Cash Basis Method		235	1,013	546	1,487	2,452
Commercial and industrial [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	[1]	2,015	1,771	2,015	1,771	1,434
Impaired Financing Receivable, with Related Allowance, Recorded Investment	[1]	303	0	303	0	242
Impaired Financing Receivable, Recorded Investment	[1]	2,318	1,771	2,318	1,771	1,676
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance		2,954	2,377	2,954	2,377	2,238
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance		403	0	403	0	242
Impaired Financing Receivable, Unpaid Principal Balance		3,357	2,377	3,357	2,377	2,480
Impaired Financing Receivable, Related Allowance		134	0	134	0	58
Impaired Financing Receivable, Related Allowance		134	0	134	0	58
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment		2,048	1,667	1,835	1,703	1,594
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment		76	0	147	0	156
Impaired Financing Receivable, Average Recorded Investment		2,124	1,667	1,982	1,703	1,750
Impaired Financing Receivable, with No Related Allowance, Interest Income, Cash Basis Method		14	12	22	25	50
Impaired Financing Receivable, with Related Allowance, Interest Income, Cash Basis Method		0	0	2	0	4
Impaired Financing Receivable, Interest Income, Cash Basis Method		14	12	24	25	54
Commercial Tax Exempt [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	[1]	0	0	0	0	0
Impaired Financing Receivable, with Related Allowance, Recorded Investment	[1]	0	0	0	0	0
Impaired Financing Receivable, Recorded Investment	[1]	0	0	0	0	0
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance		0	0	0	0	0
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance		0	0	0	0	0
Impaired Financing Receivable, Unpaid Principal Balance		0	0	0	0	0
Impaired Financing Receivable, Related Allowance		0	0	0	0	0
Impaired Financing Receivable, Related Allowance		0	0	0	0	0
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment		0	1,084	0	1,859	1,001
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment		0	0	0	0	0
Impaired Financing Receivable, Average Recorded Investment		0	1,084	0	1,859	1,001
Impaired Financing Receivable, with No Related Allowance, Interest Income, Cash Basis Method		0	80	0	80	80
Impaired Financing Receivable, with Related Allowance, Interest Income, Cash Basis Method		0	0	0	0	0
Impaired Financing Receivable, Interest Income, Cash Basis Method		0	80	0	80	80
Commercial real estate [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	[1]	2,932	2,879	2,932	2,879	1,832
Impaired Financing Receivable, with Related Allowance, Recorded Investment	[1]	5,426	6,996	5,426	6,996	6,855
Impaired Financing Receivable, Recorded Investment	[1]	8,358	9,875	8,358	9,875	8,687
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance		4,695	6,429	4,695	6,429	3,453
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance		5,855	7,425	5,855	7,425	7,284
Impaired Financing Receivable, Unpaid Principal Balance		10,550	13,854	10,550	13,854	10,737
Impaired Financing Receivable, Related Allowance		187	453	187	453	362
Impaired Financing Receivable, Related Allowance		187	453	187	453	362
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment		2,939	3,358	2,460	3,824	3,098
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment		5,467	7,011	6,055	7,042	6,980
Impaired Financing Receivable, Average Recorded Investment		8,406	10,369	8,515	10,866	10,078
Impaired Financing Receivable, with No Related Allowance, Interest Income, Cash Basis Method		25	724	50	970	1,546
Impaired Financing Receivable, with Related Allowance, Interest Income, Cash Basis Method		72	96	228	171	322
Impaired Financing Receivable, Interest Income, Cash Basis Method		97	820	278	1,141	1,868
Construction and land [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	[1]	0	232	0	232	109
Impaired Financing Receivable, with Related Allowance, Recorded Investment	[1]	0	0	0	0	0
Impaired Financing Receivable, Recorded Investment	[1]	0	232	0	232	109
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance		0	568	0	568	109
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance		0	0	0	0	0
Impaired Financing Receivable, Unpaid Principal Balance		0	568	0	568	109
Impaired Financing Receivable, Related Allowance		0	0	0	0	0
Impaired Financing Receivable, Related Allowance		0	0	0	0	0
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment		82	190	94	181	172
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment		0	0	0	0	0
Impaired Financing Receivable, Average Recorded Investment		82	190	94	181	172
Impaired Financing Receivable, with No Related Allowance, Interest Income, Cash Basis Method		16	0	16	0	0
Impaired Financing Receivable, with Related Allowance, Interest Income, Cash Basis Method		0	0	0	0	0
Impaired Financing Receivable, Interest Income, Cash Basis Method		16	0	16	0	0
Residential [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	[1]	10,455	9,600	10,455	9,600	9,337
Impaired Financing Receivable, with Related Allowance, Recorded Investment	[1]	816	2,503	816	2,503	828
Impaired Financing Receivable, Recorded Investment	[1]	11,271	12,103	11,271	12,103	10,165
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance		10,815	9,971	10,815	9,971	9,709
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance		816	2,503	816	2,503	828
Impaired Financing Receivable, Unpaid Principal Balance		11,631	12,474	11,631	12,474	10,537
Impaired Financing Receivable, Related Allowance		82	507	82	507	89
Impaired Financing Receivable, Related Allowance		82	507	82	507	89
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment		10,587	9,561	10,009	8,958	9,033
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment		818	2,613	821	3,312	2,469
Impaired Financing Receivable, Average Recorded Investment		11,405	12,174	10,830	12,270	11,502
Impaired Financing Receivable, with No Related Allowance, Interest Income, Cash Basis Method		87	78	189	179	360
Impaired Financing Receivable, with Related Allowance, Interest Income, Cash Basis Method		6	23	12	62	89
Impaired Financing Receivable, Interest Income, Cash Basis Method		93	101	201	241	449
Home equity [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	[1]	0	0	0	0	1,779
Impaired Financing Receivable, with Related Allowance, Recorded Investment	[1]	1,769	36	1,769	36	36
Impaired Financing Receivable, Recorded Investment	[1]	1,769	36	1,769	36	1,815
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance		0	0	0	0	1,779
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance		1,769	36	1,769	36	36
Impaired Financing Receivable, Unpaid Principal Balance		1,769	36	1,769	36	1,815
Impaired Financing Receivable, Related Allowance		597	21	597	21	20
Impaired Financing Receivable, Related Allowance		597	21	597	21	20
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment		1,311	0	1,509	0	413
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment		469	37	284	37	36
Impaired Financing Receivable, Average Recorded Investment		1,780	37	1,793	37	449
Impaired Financing Receivable, with No Related Allowance, Interest Income, Cash Basis Method		15	0	24	0	0
Impaired Financing Receivable, with Related Allowance, Interest Income, Cash Basis Method		0	0	0	0	1
Impaired Financing Receivable, Interest Income, Cash Basis Method		15	0	24	0	1
Consumer and other [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	[1]	0	0	0	0	0
Impaired Financing Receivable, with Related Allowance, Recorded Investment	[1]	0	0	0	0	125
Impaired Financing Receivable, Recorded Investment	[1]	0	0	0	0	125
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance		0	0	0	0	0
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance		0	0	0	0	250
Impaired Financing Receivable, Unpaid Principal Balance		0	0	0	0	250
Impaired Financing Receivable, Related Allowance		0	0	0	0	125
Impaired Financing Receivable, Related Allowance		0	0	0	0	125
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment		0	0	0	0	0
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment		0	0	18	0	10
Impaired Financing Receivable, Average Recorded Investment		0	0	18	0	10
Impaired Financing Receivable, with No Related Allowance, Interest Income, Cash Basis Method		0	0	0	0	0
Impaired Financing Receivable, with Related Allowance, Interest Income, Cash Basis Method		0	0	3	0	0
Impaired Financing Receivable, Interest Income, Cash Basis Method		$ 0	$ 0	$ 3	$ 0	$ 0

[1] Recorded investment represents the client loan balance net of historical charge-offs and historical nonaccrual interest paid, if applicable, which was applied to principal.

XML

Loan Portfolio and Credit Quality Loans Restructured in Current Quarter (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018 USD ($) Loans	Jun. 30, 2017 Loans	Jun. 30, 2018 USD ($) Loans	Jun. 30, 2017 Loans
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Number of Contracts | Loans	1	0	1	0
Financing Receivable, Modifications, Pre-Modification Recorded Investment	$ 100		$ 100
Financing Receivable, Modifications, Post-Modification Recorded Investment	$ 100		$ 100
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | Loans	0	0	0	0
Financing Receivable, Modifications, Subsequent Default, Recorded Investment	$ 0		$ 0
Commercial and industrial [Member]
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | Loans	0
Financing Receivable, Modifications, Subsequent Default, Recorded Investment	$ 0
Commercial and industrial [Member] | Extended Maturity [Member]
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Number of Contracts | Loans	1
Financing Receivable, Modifications, Pre-Modification Recorded Investment	$ 100
Financing Receivable, Modifications, Post-Modification Recorded Investment	$ 100
Commercial and Industrial Portfolio Segment [Member]
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | Loans			0
Financing Receivable, Modifications, Subsequent Default, Recorded Investment			$ 0
Commercial and Industrial Portfolio Segment [Member] | Extended Maturity [Member]
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Number of Contracts | Loans			1
Financing Receivable, Modifications, Pre-Modification Recorded Investment			$ 100
Financing Receivable, Modifications, Post-Modification Recorded Investment			$ 100
Commercial real estate [Member]
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Number of Contracts | Loans	0		0
Financing Receivable, Modifications, Pre-Modification Recorded Investment	$ 0		$ 0
Financing Receivable, Modifications, Post-Modification Recorded Investment	$ 0		$ 0
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | Loans	0		0
Financing Receivable, Modifications, Subsequent Default, Recorded Investment	$ 0		$ 0
Construction and land [Member]
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Number of Contracts | Loans	0		0
Financing Receivable, Modifications, Pre-Modification Recorded Investment	$ 0		$ 0
Financing Receivable, Modifications, Post-Modification Recorded Investment	$ 0		$ 0
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | Loans	0		0
Financing Receivable, Modifications, Subsequent Default, Recorded Investment	$ 0		$ 0
Residential [Member]
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Number of Contracts | Loans	0		0
Financing Receivable, Modifications, Pre-Modification Recorded Investment	$ 0		$ 0
Financing Receivable, Modifications, Post-Modification Recorded Investment	$ 0		$ 0
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | Loans	0		0
Financing Receivable, Modifications, Subsequent Default, Recorded Investment	$ 0		$ 0
Home equity [Member]
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Number of Contracts | Loans	0		0
Financing Receivable, Modifications, Pre-Modification Recorded Investment	$ 0		$ 0
Financing Receivable, Modifications, Post-Modification Recorded Investment	$ 0		$ 0
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | Loans	0		0
Financing Receivable, Modifications, Subsequent Default, Recorded Investment	$ 0		$ 0
Consumer and other [Member]
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Number of Contracts | Loans	0		0
Financing Receivable, Modifications, Pre-Modification Recorded Investment	$ 0		$ 0
Financing Receivable, Modifications, Post-Modification Recorded Investment	$ 0		$ 0
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | Loans	0		0
Financing Receivable, Modifications, Subsequent Default, Recorded Investment	$ 0		$ 0

XML

Loan Portfolio and Credit Quality Loan Participation Amounts (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Loan Participation Amounts by Loan Type [Line Items]
Loan Participation Serviced for Others Amount	$ 109,206	$ 115,912
Loan Serviced for Others Amount	38,217	41,440
Commercial and industrial [Member]
Loan Participation Amounts by Loan Type [Line Items]
Loan Participation Serviced for Others Amount	8,313	8,484
Commercial Tax Exempt [Member]
Loan Participation Amounts by Loan Type [Line Items]
Loan Participation Serviced for Others Amount	19,464	19,805
Commercial real estate [Member]
Loan Participation Amounts by Loan Type [Line Items]
Loan Participation Serviced for Others Amount	49,200	49,783
Construction and land [Member]
Loan Participation Amounts by Loan Type [Line Items]
Loan Participation Serviced for Others Amount	32,229	37,840
Residential [Member]
Loan Participation Amounts by Loan Type [Line Items]
Loan Serviced for Others Amount	$ 38,217	$ 41,440

XML

Loan Portfolio and Credit Quality Loan footnote text disclosures (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing	$ 0	$ 0
Financing Receivable, Modifications, Recorded Investment	12,900	13,600
Loans and Leases Receivable, Deferred Income	7,800	6,900
Accruing Troubled Debt Restructured Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Modifications, Recorded Investment	$ 10,700	$ 11,100

XML

Allowance for Loan Losses Allowance Rollforward (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans and Leases Receivable, Allowance at Beginning of Period	$ 72,898	$ 78,031	$ 74,742	$ 78,077
Financing Receivable, Allowance for Credit Losses, Charge-offs	(140)	(463)	(529)	(521)
Financing Receivable, Allowance for Credit Losses, Recoveries	253	3,555	593	3,748
Provision/ (credit) for loan losses	453	(6,114)	(1,342)	(6,295)
Loans and Leases Receivable, Allowance at End of Period	73,464	75,009	73,464	75,009
Commercial and Industrial Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans and Leases Receivable, Allowance at Beginning of Period	11,443	12,291	11,735	12,751
Financing Receivable, Allowance for Credit Losses, Charge-offs	(125)	(218)	(339)	(218)
Financing Receivable, Allowance for Credit Losses, Recoveries	152	67	234	154
Provision/ (credit) for loan losses	911	(468)	751	(1,015)
Loans and Leases Receivable, Allowance at End of Period	12,381	11,672	12,381	11,672
Commercial real estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans and Leases Receivable, Allowance at Beginning of Period	46,116	51,164	46,820	50,412
Financing Receivable, Allowance for Credit Losses, Charge-offs	0	0	(135)	0
Financing Receivable, Allowance for Credit Losses, Recoveries	50	3,479	175	3,529
Provision/ (credit) for loan losses	(983)	(6,507)	(1,677)	(5,805)
Loans and Leases Receivable, Allowance at End of Period	45,183	48,136	45,183	48,136
Construction and land [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans and Leases Receivable, Allowance at Beginning of Period	4,533	3,197	4,949	3,039
Financing Receivable, Allowance for Credit Losses, Charge-offs	0	0	0	0
Financing Receivable, Allowance for Credit Losses, Recoveries	0	0	0	0
Provision/ (credit) for loan losses	80	388	(336)	546
Loans and Leases Receivable, Allowance at End of Period	4,613	3,585	4,613	3,585
Residential [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans and Leases Receivable, Allowance at Beginning of Period	9,896	10,090	9,773	10,449
Financing Receivable, Allowance for Credit Losses, Charge-offs	0	0	(16)	(58)
Financing Receivable, Allowance for Credit Losses, Recoveries	27	0	27	47
Provision/ (credit) for loan losses	(119)	192	20	(156)
Loans and Leases Receivable, Allowance at End of Period	9,804	10,282	9,804	10,282
Home equity [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans and Leases Receivable, Allowance at Beginning of Period	784	987	835	1,035
Financing Receivable, Allowance for Credit Losses, Charge-offs	0	0	0	0
Financing Receivable, Allowance for Credit Losses, Recoveries	0	0	1	0
Provision/ (credit) for loan losses	552	(58)	500	(106)
Loans and Leases Receivable, Allowance at End of Period	1,336	929	1,336	929
Consumer and other [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans and Leases Receivable, Allowance at Beginning of Period	126	302	630	391
Financing Receivable, Allowance for Credit Losses, Charge-offs	(15)	(245)	(39)	(245)
Financing Receivable, Allowance for Credit Losses, Recoveries	24	9	156	18
Provision/ (credit) for loan losses	12	339	(600)	241
Loans and Leases Receivable, Allowance at End of Period	$ 147	$ 405	$ 147	$ 405

XML

Allowance for Loan Losses Allowance by impairment analysis method (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Individually Evaluated for Impairment	$ 23,716		$ 22,577
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	1,000		654
Financing Receivable, Collectively Evaluated for Impairment	6,743,407		6,482,451
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	72,464		74,088
Loans and Leases Receivable, Net of Deferred Income	6,767,123		6,505,028
Loans and Leases Receivable, Allowance	73,464	$ 72,898	74,742	$ 75,009	$ 78,031	$ 78,077
Commercial and Industrial Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Individually Evaluated for Impairment	2,318		1,676
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	134		58
Financing Receivable, Collectively Evaluated for Impairment	1,019,757		938,014
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	12,247		11,677
Loans and Leases Receivable, Net of Deferred Income	1,022,075		939,690
Loans and Leases Receivable, Allowance	12,381	11,443	11,735	11,672	12,291	12,751
Commercial real estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Individually Evaluated for Impairment	8,358		8,687
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	187		362
Financing Receivable, Collectively Evaluated for Impairment	2,496,163		2,431,533
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	44,996		46,458
Loans and Leases Receivable, Net of Deferred Income	2,504,521		2,440,220
Loans and Leases Receivable, Allowance	45,183	46,116	46,820	48,136	51,164	50,412
Construction and land [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Individually Evaluated for Impairment	0		109
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	0		0
Financing Receivable, Collectively Evaluated for Impairment	172,024		164,881
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	4,613		4,949
Loans and Leases Receivable, Net of Deferred Income	172,024		164,990
Loans and Leases Receivable, Allowance	4,613	4,533	4,949	3,585	3,197	3,039
Residential [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Individually Evaluated for Impairment	11,271		10,165
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	82		89
Financing Receivable, Collectively Evaluated for Impairment	2,796,935		2,672,368
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	9,722		9,684
Loans and Leases Receivable, Net of Deferred Income	2,808,206		2,682,533
Loans and Leases Receivable, Allowance	9,804	9,896	9,773	10,282	10,090	10,449
Home equity [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Individually Evaluated for Impairment	1,769		1,815
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	597		20
Financing Receivable, Collectively Evaluated for Impairment	90,032		98,143
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	739		815
Loans and Leases Receivable, Net of Deferred Income	91,801		99,958
Loans and Leases Receivable, Allowance	1,336	784	835	929	987	1,035
Consumer and other [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Individually Evaluated for Impairment	0		125
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	0		125
Financing Receivable, Collectively Evaluated for Impairment	168,496		177,512
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	147		505
Loans and Leases Receivable, Net of Deferred Income	168,496		177,637
Loans and Leases Receivable, Allowance	$ 147	$ 126	$ 630	$ 405	$ 302	$ 391

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Allowance for Loan Losses Allowance for Loan Losses Text Disclosures (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans and Leases Receivable, Net of Deferred Income	$ 6,767,123,000	$ 6,505,028,000
Financial Asset Acquired with Credit Deterioration [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans and Leases Receivable, Net of Deferred Income	$ 0	$ 0

XML

Derivatives and Hedging Activities Derivatives Fair Value and Balance Sheet Classification (Details) - USD ($) $ in Thousands		Jun. 30, 2018	Dec. 31, 2017
Other Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value, Gross Asset	[1]	$ 28,087	$ 19,133
Other Assets [Member] | Designated as Hedging Instrument [Member] | Interest Rate Contract [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value, Gross Asset	[1]	1,197	555
Other Assets [Member] | Not Designated as Hedging Instrument [Member] | Interest Rate Contract [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value, Gross Asset	[1]	26,865	18,575
Other Assets [Member] | Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value, Gross Asset	[1]	1	2
Other Assets [Member] | Not Designated as Hedging Instrument [Member] | Loan Participations and Assignments [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value, Gross Asset	[1]	24	1
Other Liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative Liability, Fair Value, Gross Liability	[1]	(27,404)	(19,143)
Other Liabilities [Member] | Designated as Hedging Instrument [Member] | Interest Rate Contract [Member]
Derivatives, Fair Value [Line Items]
Derivative Liability, Fair Value, Gross Liability	[1]	0	(80)
Other Liabilities [Member] | Not Designated as Hedging Instrument [Member] | Interest Rate Contract [Member]
Derivatives, Fair Value [Line Items]
Derivative Liability, Fair Value, Gross Liability	[1]	(27,290)	(18,953)
Other Liabilities [Member] | Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member]
Derivatives, Fair Value [Line Items]
Derivative Liability, Fair Value, Gross Liability	[1]	(1)	(2)
Other Liabilities [Member] | Not Designated as Hedging Instrument [Member] | Loan Participations and Assignments [Member]
Derivatives, Fair Value [Line Items]
Derivative Liability, Fair Value, Gross Liability	[1]	$ (113)	$ (108)

[1] For additional details, see Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 5: Fair Value Measurements.”

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Derivatives and Hedging Activities Effect of Derivative Instruments on Statement of Operations (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2018		Jun. 30, 2017		Jun. 30, 2018		Jun. 30, 2017		Jan. 01, 2018
Derivative Instruments, Gain (Loss) [Line Items]
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax	$ 175	[1]	$ (425)	[1]	$ 1,011	[2]	$ (358)	[2]
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	(263)		357		(284)		660
Gain (Loss) on Cash Flow Hedge Ineffectiveness, Net			2				(2)
Cumulative Effect of New Accounting Principle in Period of Adoption									$ 5
Interest Expense [Member] | Interest Rate Contract [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	(263)		357		(284)		660
Cash Flow Hedging [Member] | Interest Rate Contract [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax	$ 175	[1]	$ (425)	[1]	$ 1,011	[2]	$ (358)	[2]

[1] There was an additional $2 thousand gain related to the ineffective portion for the three months ended as of June 30, 2017.

[2] There was an additional $(2) thousand loss related to the ineffective portion for the six months ended as of June 30, 2017. The guidance in ASU 2017-12 requires that amounts in accumulated other comprehensive income that are included in the assessment of effectiveness should be reclassified into earnings in the same period in which the hedged forecasted transactions impact earnings. Transition guidance for this ASU further states that upon adoption, previously recorded cumulative ineffectiveness for cash flow hedges existing at the adoption date be eliminated by means of a cumulative-effect adjustment to accumulated other comprehensive income with a corresponding adjustment to the opening balance of retained earnings as of the initial application date. There was a $5 thousand reclassification related to the adoption of ASU 2017-12 effective January 1, 2018.

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Derivatives and Hedging Activities Effect of Derivative Instruments on Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018
Interest Rate Contract [Member] | Interest Expense [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) on Derivative Instruments, Net, Pretax	$ (263)	$ (284)

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Derivatives and Hedging Activities Derivatives collateral with counterparties (Details) - Interest Rate Swap [Member] - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Collateral, Obligation to Return Cash	$ 0.0	$ 3.1
Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Collateral, Right to Reclaim Securities	$ 1.1	$ 2.3

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Derivatives and Hedging Activities Cash Flow Hedges Text Description (Details) $ in Millions	6 Months Ended
	Jun. 30, 2018 USD ($) contracts
Derivative [Line Items]
Objectives for Using Derivative Instruments	The Company’s objectives in using interest rate derivatives are to add stability to interest income and expense and to manage its exposure to interest rate movements.
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net	$ 1.2
Private Banking Segment [Member]
Derivative [Line Items]
Number of Interest Rate Derivatives Held | contracts	6
Interest Rate Swap [Member] | Bank $25m LIBOR Swap effective 8/1/13 [Member] | Private Banking Segment [Member] | Designated as Hedging Instrument [Member]
Derivative [Line Items]
Objectives for Using Derivative Instruments	The interest rate swaps will effectively fix the Bank’s interest payments on $100 million of its LIBOR-indexed deposit liabilities
Derivative, Inception Date	Aug. 01, 2013
Derivative Asset, Notional Amount	$ 25.0
Interest Rate Swap [Member] | Bank $25m LIBOR Swap effective 8/1/13 [Member] | Private Banking Segment [Member] | Designated as Hedging Instrument [Member] | Minimum [Member]
Derivative [Line Items]
Derivative, Term of Contract	4 years
Derivative, Fixed Interest Rate	1.68%
Interest Rate Swap [Member] | Bank $25m LIBOR Swap effective 8/1/13 [Member] | Private Banking Segment [Member] | Designated as Hedging Instrument [Member] | Maximum [Member]
Derivative [Line Items]
Derivative, Term of Contract	6 years
Derivative, Fixed Interest Rate	2.32%
Interest Rate Swap [Member] | Bank $25m LIBOR Swap effective 8/1/13 [Member] | Private Banking Segment [Member] | Designated as Hedging Instrument [Member] | Weighted Average [Member]
Derivative [Line Items]
Derivative, Fixed Interest Rate	1.95%
Interest Rate Swap [Member] | Bank $25m LIBOR Swap effective 3/1/14 [Member] | Private Banking Segment [Member] | Designated as Hedging Instrument [Member]
Derivative [Line Items]
Objectives for Using Derivative Instruments	The interest rate swaps will effectively fix the Bank’s interest payments on $100 million of its LIBOR-indexed deposit liabilities
Derivative, Inception Date	Mar. 01, 2014
Derivative Asset, Notional Amount	$ 25.0
Interest Rate Swap [Member] | Bank $25m LIBOR Swap effective 3/1/14 [Member] | Private Banking Segment [Member] | Designated as Hedging Instrument [Member] | Minimum [Member]
Derivative [Line Items]
Derivative, Term of Contract	4 years
Derivative, Fixed Interest Rate	1.68%
Interest Rate Swap [Member] | Bank $25m LIBOR Swap effective 3/1/14 [Member] | Private Banking Segment [Member] | Designated as Hedging Instrument [Member] | Maximum [Member]
Derivative [Line Items]
Derivative, Term of Contract	6 years
Derivative, Fixed Interest Rate	2.32%
Interest Rate Swap [Member] | Bank $25m LIBOR Swap effective 3/1/14 [Member] | Private Banking Segment [Member] | Designated as Hedging Instrument [Member] | Weighted Average [Member]
Derivative [Line Items]
Derivative, Fixed Interest Rate	1.95%
Interest Rate Swap [Member] | Bank $25m LIBOR Swap 2013 effective 6/1/14 [Member] | Private Banking Segment [Member] | Designated as Hedging Instrument [Member]
Derivative [Line Items]
Objectives for Using Derivative Instruments	The interest rate swaps will effectively fix the Bank’s interest payments on $100 million of its LIBOR-indexed deposit liabilities
Derivative, Inception Date	Jun. 01, 2014
Derivative Asset, Notional Amount	$ 25.0
Interest Rate Swap [Member] | Bank $25m LIBOR Swap 2013 effective 6/1/14 [Member] | Private Banking Segment [Member] | Designated as Hedging Instrument [Member] | Minimum [Member]
Derivative [Line Items]
Derivative, Term of Contract	4 years
Derivative, Fixed Interest Rate	1.68%
Interest Rate Swap [Member] | Bank $25m LIBOR Swap 2013 effective 6/1/14 [Member] | Private Banking Segment [Member] | Designated as Hedging Instrument [Member] | Maximum [Member]
Derivative [Line Items]
Derivative, Term of Contract	6 years
Derivative, Fixed Interest Rate	2.32%
Interest Rate Swap [Member] | Bank $25m LIBOR Swap 2013 effective 6/1/14 [Member] | Private Banking Segment [Member] | Designated as Hedging Instrument [Member] | Weighted Average [Member]
Derivative [Line Items]
Derivative, Fixed Interest Rate	1.95%
Interest Rate Swap [Member] | Bank $25m LIBOR Swap effective 9/2/14 [Member] | Private Banking Segment [Member] | Designated as Hedging Instrument [Member]
Derivative [Line Items]
Objectives for Using Derivative Instruments	The interest rate swaps will effectively fix the Bank’s interest payments on $100 million of its LIBOR-indexed deposit liabilities
Derivative, Inception Date	Sep. 02, 2014
Derivative Asset, Notional Amount	$ 25.0
Interest Rate Swap [Member] | Bank $25m LIBOR Swap effective 9/2/14 [Member] | Private Banking Segment [Member] | Designated as Hedging Instrument [Member] | Minimum [Member]
Derivative [Line Items]
Derivative, Term of Contract	4 years
Derivative, Fixed Interest Rate	1.68%
Interest Rate Swap [Member] | Bank $25m LIBOR Swap effective 9/2/14 [Member] | Private Banking Segment [Member] | Designated as Hedging Instrument [Member] | Maximum [Member]
Derivative [Line Items]
Derivative, Term of Contract	6 years
Derivative, Fixed Interest Rate	2.32%
Interest Rate Swap [Member] | Bank $25m LIBOR Swap effective 9/2/14 [Member] | Private Banking Segment [Member] | Designated as Hedging Instrument [Member] | Weighted Average [Member]
Derivative [Line Items]
Derivative, Fixed Interest Rate	1.95%
Interest Rate Swap [Member] | Bank $40m LIBOR Swap 2017 effective 3/22/17 [Member] | Private Banking Segment [Member] | Designated as Hedging Instrument [Member]
Derivative [Line Items]
Objectives for Using Derivative Instruments	These interest rate swaps will effectively fix the Bank’s interest payments on $100 million in interest-related cash outflows attributable to changes in the LIBOR component of FHLB borrowing liabilities
Derivative, Inception Date	Mar. 22, 2017
Derivative Asset, Notional Amount	$ 40.0
Derivative, Term of Contract	1 year 9 months
Derivative, Fixed Interest Rate	1.55%
Interest Rate Swap [Member] | Bank $40m LIBOR Swap 2017 effective 3/22/17 [Member] | Private Banking Segment [Member] | Designated as Hedging Instrument [Member] | Weighted Average [Member]
Derivative [Line Items]
Derivative, Fixed Interest Rate	1.61%
Interest Rate Swap [Member] | Bank $60m LIBOR Swap 2017 effective 3/22/17 [Member] | Private Banking Segment [Member] | Designated as Hedging Instrument [Member]
Derivative [Line Items]
Objectives for Using Derivative Instruments	These interest rate swaps will effectively fix the Bank’s interest payments on $100 million in interest-related cash outflows attributable to changes in the LIBOR component of FHLB borrowing liabilities
Derivative, Inception Date	Mar. 22, 2017
Derivative Asset, Notional Amount	$ 60.0
Derivative, Term of Contract	2 years 3 months
Derivative, Fixed Interest Rate	1.65%
Interest Rate Swap [Member] | Bank $60m LIBOR Swap 2017 effective 3/22/17 [Member] | Private Banking Segment [Member] | Designated as Hedging Instrument [Member] | Weighted Average [Member]
Derivative [Line Items]
Derivative, Fixed Interest Rate	1.61%

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Derivatives and Hedging Activities Non-designated Hedges Text description (Details) - Not Designated as Hedging Instrument [Member] $ in Millions	6 Months Ended
	Jun. 30, 2018 USD ($) contracts	Dec. 31, 2017 USD ($) contracts
Interest Rate Swap [Member]
Derivative [Line Items]
Derivative, Number of Instruments Held | contracts	156	142
Derivative, Notional Amount | $	$ 1,200.0	$ 1,100.0
Foreign Exchange Contract [Member]
Derivative [Line Items]
Derivative, Number of Instruments Held | contracts	11	3
Derivative, Notional Amount | $	$ 0.7	$ 0.2
Loan Participations and Assignments [Member]
Derivative [Line Items]
Derivative, Number of Instruments Held | contracts	7	6
Derivative, Notional Amount | $	$ 60.2	$ 48.0
Derivative, Underlying Risk, Description	The Bank has no obligations under the risk participation agreements unless the borrower defaults on their swap transaction with the lead bank and the swap is in a liability position to the borrower. In that instance, the Bank has agreed to pay the lead bank a portion of the swap’s termination value at the time of the default.
Other Contract [Member]
Derivative [Line Items]
Derivative, Number of Instruments Held | contracts	3	2
Derivative, Notional Amount | $	$ 11.5	$ 6.1
Derivative, Underlying Risk, Description	The other financial institution has no obligations under the risk participation agreements unless the borrowers default on their swap transactions with the Bank and the swaps are in liability positions to the borrower. In those instances, the other financial institution has agreed to pay the Bank a portion of the swap’s termination value at the time of the default.

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Derivatives and Hedging Activities Derivatives not designated as hedges, effect on statement of operations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Derivative Instruments, Gain (Loss) [Line Items]
Description of Location of Gain (Loss) on Interest Rate Derivative Instruments Not Designated as Hedging Instruments in Financial Statements			Other income/ (expense)
Not Designated as Hedging Instrument [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net	$ (92)	$ (4)	$ 166	$ (326)
Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net	(139)	(324)	(47)	(646)
Not Designated as Hedging Instrument [Member] | Loan Participations and Assignments [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net	$ 47	$ 320	$ 213	$ 320

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Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Tax Expense Components [Line Items]
Income before income taxes	$ 24,803	$ 33,456	$ 52,867	$ 55,005
Income tax expense	17,399	9,963	23,425	16,516
Net income from continuing operations	7,404	23,493	$ 29,442	$ 38,489
Effective Income Tax Rate, Continuing Operations			44.30%	30.00%
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax			$ 2,388	$ 4,606
Discontinued Operation, Tax Effect of Discontinued Operation			692	1,911
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest	(2)	1,063	$ 1,696	$ 2,695
Effective Tax Rate Discontinued Operations			29.00%	41.50%
Net Income (Loss) Attributable to Noncontrolling Interest	968	1,150	$ 2,018	$ 2,116
Tax effect Attributable to Noncontrolling Interests			$ 0	$ 0
Effective Tax Rate Noncontrolling Interests			0.00%	0.00%
Income from Continuing and Discontinued Operations Attributable to Parent Before Tax			$ 53,237	$ 57,495
Tax Expense (Benefit) Total			24,117	18,427
Net income attributable to the Company	$ 6,434	$ 23,406	$ 29,120	$ 39,068
Effective Tax Rate Total			45.30%	32.00%

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Income Taxes Income Taxes Discussion (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Tax Disclosure [Abstract]
Effective Income Tax Rate Reconciliation, Percent			44.30%	30.00%
Income tax expense	$ 17,399	$ 9,963	$ 23,425	$ 16,516
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate			21.00%	35.00%
Income tax expense/ (benefit) related to sale of affiliate	$ 12,700		$ 12,700

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Noncontrolling Interests Components of Noncontrolling Interests (Details) - USD ($) $ in Thousands		Jun. 30, 2018	Dec. 31, 2017
Redeemable Noncontrolling Interest [Line Items]
Redeemable and Nonredeemable Noncontrolling Interest		$ 12,743	$ 22,647
Redeemable Noncontrolling Interests		10,747	17,461
Nonredeemable Noncontrolling Interest		1,996	5,186
Anchor [Member]
Redeemable Noncontrolling Interest [Line Items]
Redeemable and Nonredeemable Noncontrolling Interest	[1]	0	9,761
BOS [Member]
Redeemable Noncontrolling Interest [Line Items]
Redeemable and Nonredeemable Noncontrolling Interest		8,352	8,057
DGHM [Member]
Redeemable Noncontrolling Interest [Line Items]
Redeemable Noncontrolling Interests	[2]	$ 4,391	$ 4,829

[1] Assets and liabilities at Anchor were classified as held for sale on the Company’s consolidated balance sheets at December 31, 2017. The Company completed the sale of Anchor in April 2018.

[2] Only includes redeemable noncontrolling interests.

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Noncontrolling Interests Redeemable Noncontrolilng Interests Rollforward (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Redeemable Noncontrolling Interest [Line Items]
Redeemable noncontrolling interests at beginning of period			$ 17,461
Nonredeemable Noncontrolling Interest at beginning of period			5,186
Net Income (Loss) Attributable to Noncontrolling Interest	$ 968	$ 1,150	2,018	$ 2,116
Redeemable noncontrolling interests at end of period	10,747		10,747
Nonredeemable Noncontrolling Interest at end of period	1,996		1,996
Redeemable Noncontrolling Interest [Member]
Redeemable Noncontrolling Interest [Line Items]
Redeemable noncontrolling interests at beginning of period	16,322	17,232	17,461	16,972
Net Income (Loss) Attributable to Noncontrolling Interest	732	859	1,491	1,583
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders	(712)	(842)	(1,449)	(1,545)
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests	(6,520)	66	(6,353)	132
Amortization of Noncontrolling Interest Equity Compensation	126	102	248	204
Noncontrolling Interest, adjustment to fair value	799	(201)	(651)	(130)
Redeemable noncontrolling interests at end of period	10,747	17,216	10,747	17,216
Noncontrolling Interest [Member]
Redeemable Noncontrolling Interest [Line Items]
Nonredeemable Noncontrolling Interest at beginning of period	4,825	3,993	5,186	4,161
Net Income (Loss) Attributable to Noncontrolling Interest	236	291	527	533
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders	(227)	(284)	(509)	(519)
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests	(3,051)	0	(3,051)	0
Amortization of Noncontrolling Interest Equity Compensation	0	250	161	506
Noncontrolling Interest, adjustment to fair value	213	125	(318)	(306)
Nonredeemable Noncontrolling Interest at end of period	$ 1,996	$ 4,375	$ 1,996	$ 4,375

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Noncontrolling Interests Noncontrolling Interests - Text Details (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Noncontrolling Interest [Abstract]
Net Income (Loss) Attributable to Noncontrolling Interest	$ 968	$ 1,150	$ 2,018	$ 2,116
Redeemable Noncontrolling Interest, Equity, Carrying Amount	10,747		10,747		$ 17,461
Nonredeemable Noncontrolling Interest	$ 1,996		$ 1,996		$ 5,186

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Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2018		Jun. 30, 2017		Jun. 30, 2018		Jun. 30, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax	$ 0		$ 141		$ 0		$ 152
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax	175	[1]	(425)	[1]	1,011	[2]	(358)	[2]
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax	187		(206)		201		(386)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	187		(65)		201		(234)
Accumulated Net Unrealized Investment Gain (Loss) [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax					0		152
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax					201		(386)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Gain (Loss) on Investments [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax	0		(237)		0		(256)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Income Tax Expense [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax	0		96		0		104
Reclassification out of Accumulated Other Comprehensive Income [Member] | Net Income Attributable to the Company [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax	0		(141)		0		(152)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Hedges related to deposits [Member] | Income Tax Expense [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax	76		(149)		83		(275)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Hedges related to deposits [Member] | Interest Expense [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax	(263)		357		(284)		660
Reclassification out of Accumulated Other Comprehensive Income [Member] | Hedges related to deposits [Member] | Other Income [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax	0		2		0		(1)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Hedges related to deposits [Member] | Net Income Attributable to the Company [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax	$ (187)		$ 206		$ (201)		$ 386

[1] There was an additional $2 thousand gain related to the ineffective portion for the three months ended as of June 30, 2017.

[2] There was an additional $(2) thousand loss related to the ineffective portion for the six months ended as of June 30, 2017. The guidance in ASU 2017-12 requires that amounts in accumulated other comprehensive income that are included in the assessment of effectiveness should be reclassified into earnings in the same period in which the hedged forecasted transactions impact earnings. Transition guidance for this ASU further states that upon adoption, previously recorded cumulative ineffectiveness for cash flow hedges existing at the adoption date be eliminated by means of a cumulative-effect adjustment to accumulated other comprehensive income with a corresponding adjustment to the opening balance of retained earnings as of the initial application date. There was a $5 thousand reclassification related to the adoption of ASU 2017-12 effective January 1, 2018.

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Accumulated Other Comprehensive Income Reclassification out of AOCI to RE (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Jan. 01, 2018	Dec. 31, 2017	Dec. 31, 2016
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax	$ (23,328)		$ (23,328)			$ (8,658)
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax	124	$ (246)	712	$ (210)
Reclassification adjustment for net realized (gain)/ loss included in net income	0	(141)	0	(152)
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax	187	(206)	201	(386)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	(187)	65	(201)	234
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, after Tax	(1,953)	4,239	(14,848)	6,322
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax	(63)	(40)	511	176
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax	(1)	0	(1)	(12)
Other comprehensive income/ (loss), net of tax	(2,015)	4,199	(14,336)	6,510
Cumulative Effect of New Accounting Principle in Period of Adoption					$ 5
Accounting Standards Update 2016-01 [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cumulative Effect of New Accounting Principle in Period of Adoption					(339)
Accounting Standards Update 2017-12 [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cumulative Effect of New Accounting Principle in Period of Adoption					5
Accumulated Other Comprehensive Income (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax	(23,328)	(6,038)	(23,328)	(6,038)		(8,658)	$ (12,548)
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax			(14,135)	6,276
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax			201	(234)
Other comprehensive income/ (loss), net of tax			(14,336)	6,510
Cumulative Effect of New Accounting Principle in Period of Adoption					(334)
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax	(23,327)	(4,872)	(23,327)	(4,872)		(8,140)	(11,194)
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, before Reclassification Adjustments, after Tax			(14,848)	6,474
Reclassification adjustment for net realized (gain)/ loss included in net income			0	(152)
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, after Tax			(14,848)	6,322
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | Accounting Standards Update 2016-01 [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cumulative Effect of New Accounting Principle in Period of Adoption					(339)
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax	848	(429)	848	(429)		332	(605)
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax			712	(210)
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax			201	(386)
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax			511	176
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | Accounting Standards Update 2017-12 [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cumulative Effect of New Accounting Principle in Period of Adoption					5
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated Other Comprehensive Income (Loss), Net of Tax	$ (849)	$ (737)	(849)	(737)		$ (850)	$ (749)
Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment, after Tax			(1)	(12)
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, after Tax			0	0
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax			$ (1)	$ (12)
Cumulative Effect of New Accounting Principle in Period of Adoption					$ 0

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Restructuring (Details) - USD ($)	3 Months Ended							12 Months Ended
	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2017	Mar. 31, 2017	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2014	Dec. 31, 2015
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve, beginning of period	$ 83,000	$ 337,000	$ 1,359,000	$ 1,977,000
Restructuring Reserve, Settled with Cash	(83,000)	(254,000)	(335,000)	(618,000)
Restructuring Reserve, end of period	0	83,000	1,024,000	1,359,000
Employee Severance [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve, beginning of period	83,000	337,000	1,359,000	1,977,000
Restructuring Reserve, Settled with Cash	(83,000)	(254,000)	(335,000)	(618,000)
Restructuring Reserve, end of period	0	$ 83,000	$ 1,024,000	$ 1,359,000
Banyan Acquisition and WMT Management Restructuring Plan [Member] | Wealth Management and Trust Segment [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Incurred Cost					$ 900,000	$ 1,100,000	$ 700,000	$ 3,700,000
Restructuring and Related Cost, Cost Incurred to Date							$ 6,400,000
Restructuring and Related Cost, Expected Cost Remaining	$ 0

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Revenue Recognition (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Other Banking Fee Income [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	$ 1.1	$ 0.9	$ 2.0	$ 1.8
Other Liabilities [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Deferred Revenue	$ 6.7		$ 6.7		$ 6.6

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Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Jan. 01, 2018	Dec. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative Effect of New Accounting Principle in Period of Adoption					$ (5)
Reclassification due to change in accounting principles			$ 0
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent			21.00%	35.00%
Accounting Standards Update 2016-01 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative Effect of New Accounting Principle in Period of Adoption					339
Accounting Standards Update 2016-01 [Member] | Accumulated Net Investment Gain (Loss) Attributable to Parent [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative Effect of New Accounting Principle in Period of Adoption					339
Accounting Standards Update 2017-07 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Prior Period Reclassification Adjustment		$ 181		$ 341
Reclassification due to change in accounting principles	$ 145		$ 280
Accounting Standards Update 2017-12 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative Effect of New Accounting Principle in Period of Adoption					(5)
Accounting Standards Update 2017-12 [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative Effect of New Accounting Principle in Period of Adoption					$ (5)
Accounting Standards Update 2018-02 [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative Effect of New Accounting Principle in Period of Adoption						$ (1,500)