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 March 31, 2013

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: 0-17089

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: (888) 666-1363

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, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check One)

Large accelerated filer o		Accelerated filer x
Non-accelerated filer o	(Do not check if a smaller reporting company)	Smaller reporting company 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 May 3, 2013:

Common Stock-Par Value $1.00	79,063,544
(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	41
	Executive Summary	42
	Critical Accounting Policies	43
	Financial Condition	43
	Condensed Consolidated Balance Sheets and Discussion	43
	Loan Portfolio and Credit Quality	46
	Liquidity	51
	Capital Resources	53
	Results of Operations	54
	Recent Accounting Pronouncements	59
Item 3	Quantitative and Qualitative Disclosures about Market Risk	60
Item 4	Controls and Procedures	60
PART II—OTHER INFORMATION
Item 1	Legal Proceedings	61
Item 1A	Risk Factors	61
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	61
Item 3	Defaults upon Senior Securities	61
Item 4	Mine Safety Disclosure	61
Item 5	Other Information	61
Item 6	Exhibits	62
	Signature Page	63
	Certifications

i

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

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (Unaudited)

	March 31, 2013			December 31, 2012
	(In thousands, except share and per share data)
Assets:
Cash and cash equivalents	$	54,136		$	308,744
Investment securities available for sale (amortized cost of $728,989 and $690,556 at March 31, 2013 and December 31, 2012, respectively)	736,610			699,300
Loans held for sale	289,180			308,390
Total loans	4,783,467			4,814,136
Less: Allowance for loan losses	82,286			84,057
Net loans	4,701,181			4,730,079
Other real estate owned (“OREO”)	2,329			3,616
Stock in Federal Home Loan Banks	40,436			41,981
Premises and equipment, net	29,014			27,081
Goodwill	110,180			110,180
Intangible assets, net	23,813			24,874
Fees receivable	10,452			8,836
Accrued interest receivable	14,774			14,723
Deferred income taxes, net	60,634			62,245
Other assets	123,682			124,956
Total assets	$	6,196,421		$	6,465,005
Liabilities:
Deposits	$	4,517,351		$	4,885,059
Deposits held for sale	188,252			194,084
Securities sold under agreements to repurchase	122,187			116,319
Federal funds purchased	50,000			—
Federal Home Loan Bank borrowings	461,411			408,121
Junior subordinated debentures	133,835			143,647
Other liabilities	88,869			95,386
Total liabilities	5,561,905			5,842,616
Redeemable Noncontrolling Interests	17,438			19,287
Shareholders’ Equity:
Preferred stock, $1.00 par value; authorized: 2,000,000 shares;
Series B, issued and outstanding (contingently convertible): 401 shares at March 31, 2013 and December 31, 2012; liquidation value: $100,000 per share	58,089			58,089
Common stock, $1.00 par value; authorized: 170,000,000 shares; issued and outstanding: 79,053,668 shares at March 31, 2013 and 78,743,518 shares at December 31, 2012	79,054			78,744
Additional paid-in capital	641,918			640,891
Accumulated deficit	(163,543		)	(176,746		)
Accumulated other comprehensive income	1,560			2,124
Total shareholders’ equity	617,078			603,102
Total liabilities, redeemable noncontrolling interests and shareholders’ equity	$	6,196,421		$	6,465,005

See accompanying notes to consolidated financial statements.

1

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

	Three months ended March 31,
	2013		2012
	(In thousands, except share and per share data)
Interest and dividend income:
Loans	$	49,350	$	51,946
Taxable investment securities	514		1,256
Non-taxable investment securities	839		848
Mortgage-backed securities	1,402		1,603
Federal funds sold and other	176		149
Total interest and dividend income	52,281		55,802
Interest expense:
Deposits	3,786		4,903
Federal Home Loan Bank borrowings	2,831		3,945
Junior subordinated debentures	1,154		1,752
Repurchase agreements and other short-term borrowings	234		434
Total interest expense	8,005		11,034
Net interest income	44,276		44,768
Provision/ (credit) for loan losses	—		4,000
Net interest income after provision for loan losses	44,276		40,768
Fees and other income:
Investment management and trust fees	16,868		15,238
Wealth advisory fees	10,068		9,236
Other banking fee income	1,798		1,367
Gain on sale of loans, net	1,187		421
Gain on repurchase of debt	574		879
Gain on sale of investments, net	10		13
Gain/ (loss) on OREO, net	34		(41		)
Other	57		341
Total fees and other income	30,596		27,454
Operating expense:
Salaries and employee benefits	37,449		36,912
Occupancy and equipment	7,503		7,265
Professional services	2,661		2,939
Marketing and business development	1,457		1,329
Contract services and data processing	1,568		1,188
Amortization of intangibles	1,118		1,090
FDIC insurance	1,040		849
Restructuring expense	—		135
Other	3,768		3,920
Total operating expense	56,564		55,627
Income before income taxes	18,308		12,595
Income tax expense	5,897		3,851
Net income from continuing operations	12,411		8,744
Net income from discontinued operations	1,722		1,554
Net income before attribution to noncontrolling interests	14,133		10,298

2

	Three months ended March 31,
	2013			2012
	(In thousands, except share and per share data)
Less: Net income attributable to noncontrolling interests	930			793
Net income attributable to the Company	$	13,203		$	9,505
Adjustments to net income attributable to the Company to arrive at net income attributable to common shareholders	$	(1,365	)	$	(1,110	)
Net income attributable to common shareholders for earnings/ (loss) per share calculation	$	11,838		$	8,395
Basic earnings/ (loss) per share attributable to common shareholders:
From continuing operations:	$	0.13		$	0.09
From discontinued operations:	$	0.02		$	0.02
Total attributable to common shareholders:	$	0.15		$	0.11
Weighted average basic common shares outstanding	76,818,610			75,632,980
Diluted earnings/ (loss) per share attributable to common shareholders:
From continuing operations:	$	0.13		$	0.09
From discontinued operations:	$	0.02		$	0.02
Total attributable to common shareholders:	$	0.15		$	0.11
Weighted average diluted common shares outstanding	77,825,430			76,432,851

See accompanying notes to consolidated financial statements.

3

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

	Three months ended March 31,
	2013			2012
	(In thousands)
Net income attributable to the Company	$	13,203		$	9,505
Other comprehensive income/ (loss), net of tax:
Unrealized gain/ (loss) on securities available for sale	(609		)	9
Reclassification adjustment for net realized gain/ (loss) included in net income	6			7
Net unrealized gain/ (loss) on securities available for sale	(615		)	2
Unrealized gain/ (loss) on cash flow hedges	(63		)	(162		)
Reclassification adjustment for net realized gain/ (loss) included in net income	(270		)	(243		)
Net unrealized gain/ (loss) on cash flow hedges	207			81
Net unrealized gain/ (loss) on other	(156		)	(141		)
Other comprehensive income/ (loss), net of tax	(564		)	(58		)
Total comprehensive income/ (loss) attributable to the Company, net	$	12,639		$	9,447

See accompanying notes to consolidated financial statements.

4

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited)

	Common Stock		Preferred Stock		Additional Paid-in Capital			Retained Earnings/ (Accumulated Deficit)			Accumulated Other Comprehensive Income/ (Loss)			Total
	(In thousands, except share data)
Balance, December 31, 2011	$	78,023	$	58,089	$	656,436		$	(230,017	)	$	3,594		$	566,125
Net income attributable to the Company	—		—		—			9,505			—			9,505
Other comprehensive income/ (loss), net	—		—		—			—			(58		)	(58		)
Dividends paid to common shareholders: $0.01 per share	—		—		(776		)	—			—			(776		)
Dividends paid to preferred shareholder	—		—		(73		)	—			—			(73		)
Repurchase of Carlyle warrants and Director’s warrants	—		—		(15,000		)	—			—			(15,000		)
Net proceeds from issuance of:
98,500 shares of common stock	99		—		458			—			—			557
6,609 shares of incentive stock grants, net of cancellations and forfeitures	7		—		(7		)	—			—			—
Amortization of stock compensation and employee stock purchase plan	—		—		1,927			—			—			1,927
Stock options exercised	23		—		161			—			—			184
Tax deficiency from certain stock compensation awards	—		—		(952		)	—			—			(952		)
Other equity adjustments	—		—		102			—			—			102
Balance, March 31, 2012	$	78,152	$	58,089	$	642,276		$	(220,512	)	$	3,536		$	561,541
Balance, December 31, 2012	$	78,744	$	58,089	$	640,891		$	(176,746	)	$	2,124		$	603,102
Net income attributable to the Company	—		—		—			13,203			—			13,203
Other comprehensive income/ (loss), net	—		—		—			—			(564		)	(564		)
Dividends paid to common shareholders: $0.05 per share	—		—		(4,003		)	—			—			(4,003		)
Dividends paid to preferred shareholder	—		—		(363		)	—			—			(363		)
Net proceeds from issuance of:
71,891 shares of common stock	72		—		479			—			—			551
81,418 shares of incentive stock grants, net of cancellations and forfeitures	81		—		(81		)	—			—			—
Amortization of stock compensation and employee stock purchase plan	—		—		2,278			—			—			2,278
Stock options exercised	157		—		1,045			—			—			1,202
Tax deficiency from certain stock compensation awards	—		—		(672		)	—			—			(672		)
Other equity adjustments	—		—		2,344			—			—			2,344
Balance, March 31, 2013	$	79,054	$	58,089	$	641,918		$	(163,543	)	$	1,560		$	617,078

See accompanying notes to consolidated financial statements.

5

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

	Three months ended March 31,
	2013			2012
	(In thousands)
Cash flows from operating activities:
Net income attributable to the Company	$	13,203		$	9,505
Adjustments to arrive at net income from continuing operations
Net income attributable to noncontrolling interests	930			793
(Income) before tax from discontinued operations, not including gain on disposal	(3,036		)	(2,752		)
Tax expense from discontinued operations	1,314			1,198
Net income from continuing operations	12,411			8,744
Adjustments to reconcile net income from continuing operations to net cash provided by/ (used in) operating activities:
Depreciation and amortization	5,203			4,960
Net income attributable to noncontrolling interests	(930		)	(793		)
Equity issued as compensation	2,278			1,927
Provision/ (credit) for loan losses	—			4,000
Loans originated for sale	(73,290		)	(34,218		)
Proceeds from sale of loans held for sale	93,335			42,981
Gain on the repurchase of debt	(574		)	(879		)
Deferred income tax expense/ (benefit)	1,346			674
Net decrease/ (increase) in other operating activities	(5,935		)	(8,416		)
Net cash provided by/ (used in) operating activities of continuing operations	33,844			18,980
Net cash provided by/ (used in) operating activities of discontinued operations	1,722			1,090
Net cash provided by/ (used in) operating activities	35,566			20,070
Cash flows from investing activities:
Investment securities available for sale:
Purchases	(106,697		)	(102,353		)
Sales	1,451			4,359
Maturities, redemptions, and principal payments	64,829			115,079
(Investments)/ distributions in trusts, net	(118		)	(591		)
(Purchase)/ redemption of Federal Home Loan Banks stock	1,545			1,075
Net (increase)/ decrease in portfolio loans	18,112			(201,143		)
Proceeds from recoveries of loans previously charged-off	1,122			729
Proceeds from sale of OREO	844			1,176
Proceeds from sale of portfolio loans	9,449			—
Capital expenditures	(3,453		)	(1,864		)
Cash used in other investing activities	(224		)	—
Net cash provided by/ (used in) investing activities of continuing operations	(13,140		)	(183,533		)
Net cash provided by/ (used in) investing activities of discontinued operations	—			(21		)
Net cash provided by/ (used in) investing activities	(13,140		)	(183,554		)

6

	Three months ended March 31,
	2013			2012
	(In thousands)
Cash flows from financing activities:
Net increase/ (decrease) in deposits, including deposits held for sale	(373,540		)	72,040
Net (decrease)/ increase in securities sold under agreements to repurchase	5,868			(22,240		)
Net (decrease)/ increase in federal funds purchased	50,000			—
Net (decrease)/ increase in short-term Federal Home Loan Bank borrowings	60,000			70,000
Advances of long-term Federal Home Loan Bank borrowings	20,000			15,000
Repayments of long-term Federal Home Loan Bank borrowings	(26,710		)	(24,276		)
Repurchase of debt	(8,932		)	(2,420		)
Dividends paid to common shareholders	(4,003		)	(776		)
Dividends paid to preferred shareholder	(363		)	(73		)
Repurchase of warrants	—			(15,000		)
Tax deficiency from certain stock compensation awards	(672		)	(952		)
Proceeds from stock option exercises	1,202			184
Proceeds from issuance of common stock, net	551			557
Distributions paid to noncontrolling interests	(729		)	(445		)
Other equity adjustments	294			(333		)
Net cash provided by/ (used in) financing activities of continuing operations	(277,034		)	91,266
Net cash provided by/ (used in) financing activities of discontinued operations	—			—
Net cash provided by/ (used in) financing activities	(277,034		)	91,266
Net increase/ (decrease) in cash and cash equivalents	(254,608		)	(72,218		)
Cash and cash equivalents at beginning of year	308,744			203,354
Cash and cash equivalents at end of period	$	54,136		$	131,136
Supplementary schedule of non-cash investing and financing activities:
Cash paid for interest	$	7,873		$	11,165
Cash paid for income taxes, net of (refunds received)	2,809			996
Net unrealized gain/ (loss) on securities available for sale	(615		)	2
Net unrealized gain/ (loss) on cash flow hedges	207			81
Net unrealized gain/ (loss) on other	(156		)	(141		)
Non-cash transactions:
Loans transferred into/ (out of) other real estate owned from/ (to) held for sale or portfolio	(477		)	—
Loans transferred into/ (out of) held for sale from/ (to) portfolio	9,097			—

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 with three reportable segments: Private Banking, Investment Management, and Wealth Advisory.

Boston Private Bank & Trust Company (the “Bank” or “Boston Private Bank”) is a trust company chartered by The Commonwealth of Massachusetts, insured by the Federal Deposit Insurance Corporation (the “FDIC”), and a wholly-owned subsidiary of the Company. Boston Private Bank operates primarily in four geographic markets: New England, San Francisco Bay, Southern California, and the Pacific Northwest. The Bank currently conducts business under the name of Boston Private Bank & Trust Company in all markets. In December 2012, the Bank entered into a definitive agreement to sell its three offices in the Pacific Northwest market.

The Investment Management segment has two consolidated affiliates, consisting of Dalton, Greiner, Hartman, Maher & Co., LLC (“DGHM”) and Anchor Capital Advisors, LLC (“Anchor”) (together, the “Investment Managers”), both of which are registered investment advisers. Effective January 1, 2013, Anchor/Russell Capital Advisors LLC (“Anchor Russell”) merged into Anchor, with Anchor as the surviving entity. Anchor Capital Holdings, LLC, the former holding company of Anchor and Anchor Russell, which was dissolved upon the merger of Anchor and Anchor Russell, has been reinstated but will remain a pass through entity with no operations. It will continue to be disregarded for tax purposes.

The Wealth Advisory segment has two consolidated affiliate partners, KLS Professional Advisors Group, LLC (“KLS”) and Bingham, Osborn & Scarborough, LLC (“BOS”) (together, the “Wealth Advisors”). In the second quarter of 2012, the Company sold its affiliate Davidson Trust Company (“DTC”). Accordingly, prior period and current financial information related to DTC is included with discontinued operations.

The Company conducts substantially all of its business through its three 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, 2012, 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, 2012, as filed with the SEC. For interim reporting purposes, the Company follows the same significant accounting policies.

8

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

2.    Earnings Per Share

The two class method of calculating EPS is presented below for the three months ended March 31, 2013 and 2012.   The following tables present the computations of basic and diluted EPS:

	Three months ended March 31,
	2013			2012
(In thousands, except share and per share data)
Basic earnings/ (loss) per share - Numerator:
Net income from continuing operations	$	12,411		$	8,744
Less: Net income attributable to noncontrolling interests	930			793
Net income from continuing operations attributable to the Company	11,481			7,951
Decrease/ (increase) in noncontrolling interests’ redemption values (1)	(15		)	(86		)
Dividends on participating securities	(442		)	(92		)
Total adjustments to income attributable to common shareholders	(457		)	(178		)
Net income from continuing operations attributable to common shareholders, before allocation to participating securities	11,024			7,773
Less: Amount allocated to participating securities	(731		)	(763		)
Net income from continuing operations attributable to common shareholders, after allocation to participating securities	$	10,293		$	7,010
Net income from discontinued operations, before allocation to participating securities	$	1,722		$	1,554
Less: Amount allocated to participating securities	(177		)	(169		)
Net income from discontinued operations, after allocation to participating securities	$	1,545		$	1,385
Net income attributable to common shareholders, before allocation to participating securities	$	12,746		$	9,327
Less: Amount allocated to participating securities	(908		)	(932		)
Net income attributable to common shareholders, after allocation to participating securities	$	11,838		$	8,395
Basic earnings/ (loss) per share - Denominator:
Weighted average basic common shares outstanding	76,818,610			75,632,980
Per share data - Basic earnings/ (loss) per share from:
Continuing operations	$	0.13		$	0.09
Discontinued operations	$	0.02		$	0.02
Total attributable to common shareholders	$	0.15		$	0.11

9

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

	Three months ended March 31,
(In thousands, except share and per share data)	2013		2012
(In thousands, except share and per share data)
Diluted earnings/ (loss) per share - Numerator:
Net income from continuing operations attributable to common shareholders, after allocation to participating securities	$	10,293	$	7,010
Add back: income allocated to dilutive securities	—		—
Net income from continuing operations attributable to common shareholders, after allocation to participating securities, after assumed dilution	10,293		7,010
Net income from discontinued operations, after allocation to participating securities	1,545		1,385
Net income attributable to common shareholders, after allocation to participating securities, after assumed dilution	$	11,838	$	8,395
Diluted earnings/ (loss) per share - Denominator:
Weighted average basic common shares outstanding	76,818,610		75,632,980
Dilutive effect of:
Stock options and performance-based restricted stock (2)	561,128		453,626
Warrants to purchase common stock (2)	445,692		346,245
Dilutive common shares	1,006,820		799,871
Weighted average diluted common shares outstanding (2)	77,825,430		76,432,851
Per share data - Diluted earnings/ (loss) per share from:
Continuing operations	$	0.13	$	0.09
Discontinued operations	$	0.02	$	0.02
Total attributable to common shareholders	$	0.15	$	0.11
Dividends per share declared on common stock	$	0.05	$	0.01

_____________________

(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, 2012 for a description of the redemption values related to the redeemable noncontrolling interests. In accordance with the Financial Accounting Standards Board (“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) The diluted EPS computations for the three months ended March 31, 2013 and 2012 do not assume the conversion, exercise, or contingent issuance of the following shares for these 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 March 31,
	2013	2012
Shares excluded due to anti-dilution (treasury method):	(In thousands)
Potential common shares from:
Convertible trust preferred securities (a)	21	1,399
Total shares excluded due to anti-dilution	21	1,399

10

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

	Three months ended March 31,
	2013	2012
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, performance-based restricted stock, or other dilutive securities (b)	1,627	2,495
Total shares excluded due to exercise price exceeding the average market price of common shares during the period	1,627	2,495

(a) If the effect of the conversion of the trust preferred securities would have been dilutive, interest expense, net of tax, related to the convertible trust preferred securities of $0.3 million for the three months ended March 31, 2012 would have been added back to net income attributable to common shareholders for diluted EPS computations for the period presented. None would be added back for the three months ended March 31, 2013.

(b) Options to purchase shares of common stock, non-participating (performance-based) restricted stock, and other dilutive securities that were outstanding at period ends were not included in the computation of diluted EPS or in the above anti-dilution table because their exercise or conversion prices were greater than the average market price of the common shares during the respective periods.

3.    Reportable segments

Management Reporting

The Company has three reportable segments (Private Banking, Investment Management, and Wealth Advisory) and the Parent Company (Boston Private Financial Holdings, Inc.) (the “Holding Company”). The financial performance of the Company is managed and evaluated by these three 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, 2012.

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

Reconciliation of Reportable Segment Items

The following tables present a reconciliation of the revenues, profits, assets, and other significant items of reportable segments as of and for the three months ended March 31, 2013 and 2012. Interest expense on junior subordinated debentures is reported at the Holding Company.

	Three months ended March 31,
	Net interest income						Non-interest income				Total revenues
	2013			2012			2013		2012		2013			2012
	(In thousands)
Total Bank	$	45,369		$	46,441		$	9,725	$	7,654	$	55,094		$	54,095
Total Investment Managers	6			7			10,096		9,484		10,102			9,491
Total Wealth Advisors (1)	20			7			10,066		9,237		10,086			9,244
Total Segments	45,395			46,455			29,887		26,375		75,282			72,830
Holding Company and Eliminations	(1,119		)	(1,687		)	709		1,079		(410		)	(608		)
Total Company	$	44,276		$	44,768		$	30,596	$	27,454	$	74,872		$	72,222

11

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

	Three months ended March 31,
	Non-interest expense (2)				Income tax expense						Net income from continuing operations
	2013		2012		2013			2012			2013			2012
	(In thousands)
Total Bank	$	34,613	$	35,634	$	6,681		$	4,649		$	13,800		$	9,812
Total Investment Managers	7,745		7,644		773			618			1,584			1,229
Total Wealth Advisors (1)	7,576		6,727		877			924			1,633			1,593
Total Segments	49,934		50,005		8,331			6,191			17,017			12,634
Holding Company and Eliminations	6,630		5,622		(2,434		)	(2,340		)	(4,606		)	(3,890		)
Total Company	$	56,564	$	55,627	$	5,897		$	3,851		$	12,411		$	8,744

	Three months ended March 31,
	Net income attributable to noncontrolling interests				Net income attributable to the Company (3)						Amortization of intangibles
	2013		2012		2013			2012			2013		2012
	(In thousands)
Total Bank	$	—	$	—	$	13,800		$	9,812		$	69	$	26
Total Investment Managers	466		395		1,118			834			800		800
Total Wealth Advisors (1)	464		398		1,169			1,195			249		264
Total Segments	930		793		16,087			11,841			1,118		1,090
Holding Company and Eliminations	—		—		(2,884		)	(2,336		)	—		—
Total Company	$	930	$	793	$	13,203		$	9,505		$	1,118	$	1,090

	As of March 31,										Three months ended March 31,
	Assets				AUM (4)						Depreciation
	2013		2012		2013			2012			2013		2012
	(In thousands)				(In millions)						(In thousands)
Total Bank	$	6,010,107	$	5,939,691	$	4,167		$	3,696		$	1,329	$	1,458
Total Investment Managers	102,205		105,640		9,314			8,047			52		62
Total Wealth Advisors (1)	66,466		66,880		8,487			7,579			88		88
Total Segments	6,178,778		6,112,211		21,968			19,322			1,469		1,608
Holding Company and Eliminations	17,643		36,351		(21		)	(20		)	52		45
Total Company	$	6,196,421	$	6,148,562	$	21,947		$	19,302		$	1,521	$	1,653

___________________

(1) In the second quarter of 2012, the Company sold its Wealth Advisory affiliate, DTC. Accordingly, prior period results for DTC have been reclassified into discontinued operations and are included with Holding Company and Eliminations in the tables above.

(2) Non-interest expense for the three months ended March 31, 2013 includes no restructuring expense. Non-interest expense for the three months ended March 31, 2012 includes $0.1 million of restructuring expense. Restructuring expenses were incurred in the Private Banking segment as well as at the Holding Company.

(3) Net income from discontinued operations for the three months ended March 31, 2013, and 2012 of $1.7 million, and $1.6 million, respectively, are included in Holding Company and Eliminations in the calculation of net income attributable to the Company.

(4) “AUM” represents Assets Under Management and Advisory at the affiliates. AUM at DTC have been removed since DTC operations are classified with discontinued operations.

12

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

4.    Investments

The following table presents a summary of investment securities:

	Amortized Cost		Unrealized					Fair Value
			Gains		Losses
	(In thousands)
As of March 31, 2013
Available for sale securities at fair value:
U.S. government and agencies	$	2,455	$	—	$	(41	)	$	2,414
Government-sponsored entities	199,381		872		—			200,253
Municipal bonds	204,955		2,930		(231		)	207,654
Mortgage-backed securities (1)	310,495		5,016		(1,095		)	314,416
Other	11,703		177		(7		)	11,873
Total	$	728,989	$	8,995	$	(1,374	)	$	736,610
As of December 31, 2012
Available for sale securities at fair value:
U.S. government and agencies	$	2,781	$	—	$	(28	)	$	2,753
Government-sponsored entities	154,058		962		(18		)	155,002
Municipal bonds	207,952		3,172		(140		)	210,984
Mortgage-backed securities (1)	313,239		5,597		(909		)	317,927
Other	12,526		120		(12		)	12,634
Total	$	690,556	$	9,851	$	(1,107	)	$	699,300

___________________

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

The following table presents the maturities of investment securities available for sale, based on contractual maturity, as of March 31, 2013. 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	$	59,431	$	59,895
After one, but within five years	279,380		281,892
After five, but within ten years	81,641		82,714
Greater than ten years	308,537		312,109
Total	$	728,989	$	736,610

The following table presents the proceeds from sales, gross realized gains and gross realized losses for securities available for sale that were sold during the following periods:

	Three months ended March 31,
	2013		2012
	(In thousands)
Proceeds from sales	$	1,451	$	4,359
Realized gains	10		16
Realized losses	—		(3		)

13

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

The following tables presents information regarding securities as of March 31, 2013 and December 31, 2012 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.

As of March 31, 2013	Less than 12 months					12 months or longer					Total
	Fair value		Unrealized losses			Fair value		Unrealized losses			Fair value		Unrealized losses			# of securities
Available for sale securities	(In thousands)
U.S. government and agencies	$	1,216	$	(33	)	$	1,198	$	(8	)	$	2,414	$	(41	)	2
Government-sponsored entities	—		—			—		—			—		—			—
Municipal bonds	26,436		(231		)	—		—			26,436		(231		)	19
Mortgage-backed securities	131,081		(1,072		)	2,371		(23		)	133,452		(1,095		)	20
Other	56		(2		)	36		(5		)	92		(7		)	9
Total	$	158,789	$	(1,338	)	$	3,605	$	(36	)	$	162,394	$	(1,374	)	50

As of December 31, 2012	Less than 12 months					12 months or longer					Total
	Fair value		Unrealized losses			Fair value		Unrealized losses			Fair value		Unrealized losses			# of securities
Available for sale securities	(In thousands)
U.S. government and agencies	$	1,472	$	(26	)	$	1,281	$	(2	)	$	2,753	$	(28	)	2
Government-sponsored entities	19,982		(18		)	—		—			19,982		(18		)	2
Municipal bonds	20,102		(140		)	—		—			20,102		(140		)	13
Mortgage-backed securities	101,280		(891		)	2,701		(18		)	103,981		(909		)	17
Other	112		(11		)	12		(1		)	124		(12		)	12
Total	$	142,948	$	(1,086	)	$	3,994	$	(21	)	$	146,942	$	(1,107	)	46

The U.S. government and agencies securities and mortgage-backed securities in the table above as of March 31, 2013 had a Standard and Poor’s credit rating of AA+. The municipal bonds in the table above had Moody’s credit ratings of at least Aa3 or Standard and Poor’s credit ratings of A+. The other securities consisted of equity securities.

As of March 31, 2013, the amount of investment securities in an unrealized loss position greater than 12 months as well as in total was not significant and was primarily due to movements in interest rates. The Company has no intent to sell any securities in an unrealized loss position as of March 31, 2013 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 March 31, 2013. There were $0.1 million of cost method investments with unrealized losses at December 31, 2012. The Company invests primarily in 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 $22.5 million and $24.9 million in cost method investments included in other assets as of March 31, 2013 and December 31, 2012, 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

14

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

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 March 31, 2013 and December 31, 2012, aggregated by the level in the fair value hierarchy within which those measurements fall:

	As of March 31, 2013		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	$	2,414	$	—	$	2,414	$	—
Government-sponsored entities	200,253		—		200,253		—
Municipal bonds	207,654		—		207,654		—
Mortgage-backed securities	314,416		—		314,416		—
Other	11,873		11,873		—		—
Total available for sale securities	736,610		11,873		724,737		—
Derivatives - interest rate customer swaps	2,664		—		2,664		—
Derivatives - customer foreign exchange forwards	216		—		216		—
Other investments	6,010		5,324		686		—
Liabilities:
Derivatives - interest rate customer swaps	$	2,746	$	—	$	2,746	$	—
Derivatives - customer foreign exchange forwards	216		—		216		—
Derivatives - junior subordinated debenture interest rate swap	4,750		—		4,750		—

15

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, 2012		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	$	2,753	$	—	$	2,753	$	—
Government-sponsored entities	155,002		—		155,002		—
Municipal bonds	210,984		—		210,984		—
Mortgage-backed securities	317,927		—		317,927		—
Other	12,634		12,634		—		—
Total available for sale securities	699,300		12,634		686,666		—
Derivatives - interest rate customer swaps	2,915		—		2,915		—
Derivatives - customer foreign exchange forwards	120		—		120		—
Other investments	5,892		5,206		686		—
Liabilities:
Derivatives - interest rate customer swaps	$	3,047	$	—	$	3,047	$	—
Derivatives - customer foreign exchange forwards	120		—		120		—
Derivatives - junior subordinated debenture interest rate swap	5,189		—		5,189		—

As of March 31, 2013 and December 31, 2012, available for sale securities consisted primarily of U.S. government and agencies securities, government-sponsored entities securities, municipal bonds, mortgage-backed securities, and other available for sale securities. The equities (which are categorized as other available for sale securities) are valued with prices quoted in active markets. Therefore, they have been categorized as a Level 1 measurement. The government-sponsored entities securities, municipal bonds, mortgage-backed securities, and certain investments in Small Business Administration (“SBA”) loans (which are categorized as U.S. government and agencies securities) generally have quoted prices but are traded less frequently than exchange-traded securities and can be priced using market data from similar assets. Therefore, they have been categorized as a Level 2 measurement. No investments held at March 31, 2013 or December 31, 2012 were categorized as Level 3.

The Company uses interest rate customer swaps and a junior subordinated debenture interest rate swap to manage its interest rate risk, and customer foreign exchange forward contracts to manage its foreign exchange risk. 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. Therefore, they have been categorized as a Level 2 measurement as of March 31, 2013 and December 31, 2012. 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 the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, although the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. 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 March 31, 2013 and December 31, 2012.

Other investments, which are not considered available for sale investments, consist of deferred compensation trusts for the benefit of certain current or former employees, which consist of publicly traded mutual fund investments that are valued

16

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

at prices quoted in active markets. Therefore, they have been categorized as a Level 1 measurement as of March 31, 2013 and December 31, 2012. The remaining other investments categorized as Level 2 consist of the Company’s cost-method investments as of March 31, 2013 and December 31, 2012.

There were no Level 3 assets at March 31, 2013 or December 31, 2012.

The following tables present the Company’s assets and liabilities measured at fair value on a non-recurring basis during the periods ended March 31, 2013 and 2012, respectively, aggregated by the level in the fair value hierarchy within which those measurements fall.

	As of March 31, 2013		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 March 31, 2013
	(In thousands)
Assets:
Impaired loans (1)	$	4,494	$	—	$	—	$	4,494	$	(1,239	)
	$	4,494	$	—	$	—	$	4,494	$	(1,239	)

___________________

(1) Collateral-dependent impaired loans held at March 31, 2013 that had write-downs in fair value or whose specific reserve changed during the first three months of 2013.

	As of March 31, 2012		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 March 31, 2012
	(In thousands)
Assets:
Impaired loans (1)	$	4,894	$	—	$	—	$	4,894	$	(979	)
OREO (2)	198		—		—		198		(41		)
	$	5,092	$	—	$	—	$	5,092	$	(1,020	)

________________

(1) Collateral-dependent impaired loans held at March 31, 2012 that had write-downs in fair value or whose specific reserve changed during the first three months of 2012.

(2) One OREO property held at March 31, 2012 had a write-down during the first three months of 2012.

The following table presents 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.

	March 31, 2013
	Fair Value		Valuation technique	Unobservable Input	Range of Inputs Utilized	Weighted Average of Inputs Utilized
	(In thousands)
Impaired Loans	$	4,494	Appraisals of Collateral	Discount for costs to sell	0% - 12%	7%
				Appraisal adjustments	0% - 25%	17%

17

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

	December 31, 2012
	Fair Value		Valuation technique	Unobservable Input	Range of Inputs Utilized	Weighted Average of Inputs Utilized
	(In thousands)
Impaired Loans	$	16,797	Appraisals of Collateral	Discount for costs to sell	6% - 13%	8%
				Appraisal adjustments	0% - 59%	23%
OREO	$	379	Appraisals of Collateral	Discount for costs to sell	8%	8%
				Appraisal adjustments	8%	8%

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 OREO in the tables above includes those properties that had an adjustment to fair value during the the three months ended March 31, 2013 and 2012. The Company uses appraisals as a basis for determining fair value, which management may adjust to reflect estimated fair value declines, or may 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 (other than certain loans, as noted below):

	March 31, 2013
	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	$	54,136	$	54,136	$	54,136	$	—	$	—
Loans, net	4,701,181		4,716,548		—		—		4,716,548
Loans held for sale	289,180		289,180		—		289,180		—
Other financial assets	118,004		118,004		—		118,004		—
FINANCIAL LIABILITIES:
Deposits	4,517,351		4,523,775		—		4,523,775		—
Deposits held for sale	188,252		177,107		—		177,107		—
Securities sold under agreements to repurchase	122,187		123,463		—		123,463		—
Federal Funds purchased	50,000		50,000		—		50,000		—
Federal Home Loan Bank borrowings	461,411		480,402		—		480,402		—
Junior subordinated debentures	133,835		108,573		—		3,875		104,698
Other financial liabilities	9,998		9,998		—		9,998		—

18

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

	December 31, 2012
	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	$	308,744	$	308,744	$	308,744	$	—	$	—
Loans, net	4,730,079		4,766,574		—		—		4,766,574
Loans held for sale	308,390		308,908		—		308,908		—
Other financial assets	118,087		118,087		—		118,087		—
FINANCIAL LIABILITIES:
Deposits	4,885,059		4,891,465		—		4,891,465		—
Deposits held for sale	194,084		182,592		—		182,592		—
Securities sold under agreements to repurchase	116,319		117,885		—		117,885		—
Federal Funds purchased	—		—		—		—		—
Federal Home Loan Bank borrowings	408,121		428,037		—		428,037		—
Junior subordinated debentures	143,647		117,502		—		12,804		104,698
Other financial liabilities	10,058		10,058		—		10,058		—

The estimated fair values have been determined by using available quoted market information or other appropriate valuation methodologies. The aggregate fair value amounts presented do not represent the underlying value of the Company taken as a whole.

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 therefore cannot be determined with precision. Changes made to any of the underlying assumptions could significantly affect the estimates.

Cash and cash equivalents

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

Loans, net

Fair value estimates are based on loans with similar financial characteristics. Fair values of commercial and residential mortgage loans are estimated by discounting contractual cash flows adjusted for prepayment estimates and using discount rates approximately equal to current market rates on loans with similar credit and interest rate characteristics and maturities. The fair value estimates for home equity and other loans are based on outstanding loan terms and pricing in the local markets. The method of estimating the fair value of the loans disclosed in the table above does not incorporate the exit price concept in the presentation of the fair value of these financial instruments. Net loans are included in the Level 3 fair value category based upon the inputs and valuation techniques used.

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. In December 2012, the Bank entered into an agreement to sell its three offices in the Pacific Northwest market. The loans related to this transaction were transferred from the loan portfolio to loans held for sale. The fair value indicated for these loans held for sale was based on the agreed upon offer in the pending transaction. Accordingly, loans held for sale are included in the Level 2 fair value category.

19

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

Other financial assets

Other financial assets consist of accrued interest and fees receivable, stock in Federal Home Loan Banks (“FHLBs”), and the cash surrender value of bank-owned life insurance, 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 sheets 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.

Deposits held for sale

Deposits held for sale are recorded at the lower of cost or fair value. All of the deposits held for sale at March 31, 2013 and December 31, 2012 relate to the Pacific Northwest transaction. Fair value estimates are based on actual agreed upon price and premium per the agreement. Accordingly, deposits held for sale are included in the Level 2 fair value category.

Securities sold under agreements to repurchase

The fair value of securities sold under agreements to repurchase are 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 amount of federal funds purchased approximates fair value due to their short-term nature and 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 have been classified as Level 2.

Junior subordinated debentures

The fair value of the junior subordinated debentures issued by Boston Private Capital Trust I was based on the current market price of the securities at March 31, 2013 and December 31, 2012 and have been classified as Level 2. The fair value of the junior subordinated debentures issued by Boston Private Capital Trust II and the junior subordinated debentures acquired in the acquisitions of First Private Bank & Trust, Gibraltar Private Bank and Trust Company (Gibraltar Private Bank and Trust Company was subsequently sold in 2009), and Charter Private Bank was estimated using Level 3 inputs such as the interest rates on these securities and current rates for similar debt, a consideration for illiquidity of trading in the debt, and pending regulatory changes that would result in an unfavorable change in the regulatory capital treatment of this type of debt.

During the year ended December 31, 2012, the classification of the inputs used in the valuation technique for the junior subordinated debentures, other than those issued by Boston Private Capital Trust I, were changed from Level 2 to Level 3. This change was the result of a new valuation model used primarily due to the pending changes affecting the regulatory capital treatment of junior subordinated debentures and the impact in the capital markets on new issuances of these types of securities. The Board of Governors of the Federal Reserve System (the “Federal Reserve”) proposed rules in 2012 that will begin to implement the standards set forth by the Basel Committee on Banking Supervision in December 2010 and known as Basel III which apply to capital and liquidity. Such rules would eliminate the current favorable treatment that junior subordinated debentures receive in the calculation of regulatory capital which, when combined with the current low interest rate environment and the illiquidity of this type of instrument to the holder, significantly reduces observable market data for similar debt.

Other financial liabilities

Other financial liabilities consist of accrued interest payable and deferred compensation for which the carrying amount approximates fair value and are classified as Level 2.

20

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

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.

21

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 New England, San Francisco Bay, Southern California, and the Pacific Northwest. In December 2012, the Bank entered into an agreement to sell its three offices in the Pacific Northwest market, and therefore the loans that will be included in the Pacific Northwest transaction are classified as held for sale and are not included in the data below.

The Bank originates single and multi-family residential loans, commercial real estate loans, commercial and industrial 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, San Francisco Bay, and Southern California economies and real estate markets.

Total loans include deferred loan fees/ (costs), net, of ($3.6) million and ($4.2) million as of March 31, 2013 and December 31, 2012, respectively. Deferred loan fees/ (costs) include unamortized premiums or discounts related to mortgage loans purchased by the Bank.

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

	March 31, 2013		December 31, 2012
	(In thousands)
Commercial and industrial	$	788,512	$	806,326
Commercial real estate	1,688,441		1,691,350
Construction and land	148,917		137,570
Residential	1,898,413		1,906,089
Home equity	118,182		123,551
Consumer and other	141,002		149,250
Total Loans	$	4,783,467	$	4,814,136

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

	March 31, 2013		December 31, 2012
	(In thousands)
Commercial and industrial	$	10,071	$	4,337
Commercial real estate	46,295		41,696
Construction and land	4,552		2,213
Residential	11,759		11,744
Home equity	340		660
Consumer and other	9		95
Total	$	73,026	$	60,745

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 less than $0.1 million of loans 90 days or more past due, but still accruing, as of March 31, 2013 and $3.6 million as of December 31, 2012. 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

22

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

restructured loans (“TDRs”), a return to accrual status generally requires timely payments for a period of six months under the restructured loan terms, along with meeting other criteria.

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

	March 31, 2013
	Accruing Past Due								Nonaccrual Loans
	30-59 Days Past Due (1)		60-89 Days Past Due		90+ Days Past Due		Total Accruing Past Due		Current Payment Status		30-89 Days Past Due		90+ Days Past Due		Total Non-Accrual Loans		Current Accruing Loans		Total Loans Receivable
	(In thousands)
Commercial and industrial	$	825	$	2,625	$	—	$	3,450	$	1,210	$	28	$	8,833	$	10,071	$	774,991	$	788,512
Commercial real estate	1,478		241		—		1,719		26,489		5,968		13,838		46,295		1,640,427		1,688,441
Construction and land	36		276		50		362		715		38		3,799		4,552		144,003		148,917
Residential	11,243		282		—		11,525		2,236		3,039		6,484		11,759		1,875,129		1,898,413
Home equity	31		175		—		206		300		—		40		340		117,636		118,182
Consumer and other	37		55		—		92		5		1		3		9		140,901		141,002
Total	$	13,650	$	3,654	$	50	$	17,354	$	30,955	$	9,074	$	32,997	$	73,026	$	4,693,087	$	4,783,467

___________________

(1) Does not include one commercial and industrial 30-59 day delinquent loan totaling $0.1 million in loans held for sale as of March 31, 2013.

	December 31, 2012
	Accruing Past Due								Nonaccrual Loans
	30-59 Days Past Due (1)		60-89 Days Past Due		90+ Days Past Due		Total Accruing Past Due		Current Payment Status		30-89 Days Past Due		90+ Days Past Due		Total Non-Accrual Loans		Current Accruing Loans		Total Loans Receivable
	(In thousands)
Commercial and industrial	$	10,684	$	210	$	257	$	11,151	$	3,073	$	—	$	1,264	$	4,337	$	790,838	$	806,326
Commercial real estate	3,331		4,572		3,249		11,152		29,125		8,913		3,658		41,696		1,638,502		1,691,350
Construction and land	42		3,216		50		3,308		723		137		1,353		2,213		132,049		137,570
Residential	20,194		3,218		—		23,412		5,101		1,980		4,663		11,744		1,870,933		1,906,089
Home equity	119		39		—		158		300		—		360		660		122,733		123,551
Consumer and other	569		182		—		751		93		—		2		95		148,404		149,250
Total	$	34,939	$	11,437	$	3,556	$	49,932	$	38,415	$	11,030	$	11,300	$	60,745	$	4,703,459	$	4,814,136

___________________

(1) Does not include one commercial and industrial 30-59 day delinquent loan totaling $0.3 million in loans held for sale as of December 31, 2012.

Nonaccruing and delinquent loans are affected by factors, including economic and business conditions, such as interest rates and unemployment levels, and real estate collateral values, among others. In periods of prolonged economic declines, borrowers may become more severely impacted 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 not be renewed.

Generally when a collateral dependent commercial loan becomes impaired, an updated appraisal of the collateral, if appropriate, is obtained. In limited circumstances, an updated appraisal is obtained on residential and home equity loans that are classified as impaired. If the impaired loan has not been upgraded to a performing status within a reasonable amount of time,

23

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

the Bank continues to obtain newer appraisals, approximately every 12 to 18 months or sooner, if deemed necessary, especially during periods of declining 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.

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, 2012 follows:

Acceptable or Pass - All loans graded as acceptable or pass are considered acceptable credit quality by the Bank and are grouped for purposes of calculating the allowance for loan losses. Only commercial loans, including commercial real estate, commercial and industrial loans, and construction and land loans are given a numerical grade. For residential, home equity and consumer loans, the Bank classifies loans as acceptable or pass unless there is known information such as delinquency or client requests for modifications which would then generally result in a risk rating such as substandard 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 are classified as impaired.

24

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

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

	March 31, 2013
	By Loan Grade or Nonaccrual Status
	Pass		Special Mention (1)		Accruing Substandard		Nonaccrual Loans		Total
	(In thousands)
Commercial and industrial	$	763,443	$	5,890	$	9,108	$	10,071	$	788,512
Commercial real estate	1,541,944		52,024		48,178		46,295		1,688,441
Construction and land	122,964		17,265		4,136		4,552		148,917
Residential	1,874,391		—		12,263		11,759		1,898,413
Home equity	116,169		—		1,673		340		118,182
Consumer and other	140,993		—		—		9		141,002
Total	$	4,559,904	$	75,179	$	75,358	$	73,026	$	4,783,467

___________________

(1) Does not include three commercial and industrial special mention loans totaling $0.8 million and three commercial real estate special mention loans totaling $3.0 million in loans held for sale as of March 31, 2013.

	December 31, 2012
	By Loan Grade or Nonaccrual Status
	Pass		Special Mention (1)		Accruing Substandard		Nonaccrual Loans		Total
	(In thousands)
Commercial and industrial	$	779,236	$	13,691	$	9,062	$	4,337	$	806,326
Commercial real estate	1,531,701		54,000		63,953		41,696		1,691,350
Construction and land	110,940		17,048		7,369		2,213		137,570
Residential	1,886,273		—		8,072		11,744		1,906,089
Home equity	121,218		—		1,673		660		123,551
Consumer and other	149,155		—		—		95		149,250
Total	$	4,578,523	$	84,739	$	90,129	$	60,745	$	4,814,136

___________________

(1) Does not include five commercial and industrial special mention loans totaling $0.9 million and three commercial real estate special mention loans totaling $3.0 million in loans held for sale as of December 31, 2012.

25

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 months ended March 31, 2013
	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	$	7,859	$	9,043	n/a		$	7,251	$	81
Commercial real estate	39,348		58,523		n/a		39,835		101
Construction and land	934		1,547		n/a		2,633		91
Residential	6,696		8,164		n/a		3,427		29
Home equity	40		40		n/a		280		1
Consumer and other	—		—		n/a		—		—
Subtotal	54,877		77,317		n/a		53,426		303
With an allowance recorded:
Commercial and industrial	3,245		3,310		$	369	1,676		4
Commercial real estate	24,475		25,957		2,446		20,702		112
Construction and land	3,965		4,046		417		1,637		—
Residential	10,584		10,843		1,496		13,633		112
Home equity	—		—		—		—		—
Consumer and other	—		—		—		—		—
Subtotal	42,269		44,156		4,728		37,648		228
Total:
Commercial and industrial	11,104		12,353		369		8,927		85
Commercial real estate	63,823		84,480		2,446		60,537		213
Construction and land	4,899		5,593		417		4,270		91
Residential	17,280		19,007		1,496		17,060		141
Home equity	40		40		—		280		1
Consumer and other	—		—		—		—		—
Total	$	97,146	$	121,473	$	4,728	$	91,074	$	531

___________________

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

26

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

	As of and for the three months ended March 31, 2012
	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	$	6,538	$	9,264	n/a		$	5,855	$	—
Commercial real estate	29,964		44,809		n/a		33,543		104
Construction and land	6,087		10,360		n/a		6,294		97
Residential	9,572		10,542		n/a		10,232		81
Home equity	360		360		n/a		342		1
Consumer and other	—		—		n/a		—		—
Subtotal	52,521		75,335		n/a		56,266		283
With an allowance recorded:
Commercial and industrial	1,081		1,109		$	113	1,101		—
Commercial real estate	28,121		29,624		3,245		24,586		173
Construction and land	1,194		1,224		313		1,234		—
Residential	13,757		13,757		868		8,295		63
Home equity	131		131		131		131		2
Consumer and other	—		—		—		—		—
Subtotal	44,284		45,845		4,670		35,347		238
Total:
Commercial and industrial	7,619		10,373		113		6,956		—
Commercial real estate	58,085		74,433		3,245		58,129		277
Construction and land	7,281		11,584		313		7,528		97
Residential	23,329		24,299		868		18,527		144
Home equity	491		491		131		473		3
Consumer and other	—		—		—		—		—
Total	$	96,805	$	121,180	$	4,670	$	91,613	$	521

___________________

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

27

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

	As of and for the year ended December 31, 2012
	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	$	3,274	$	4,499	n/a		$	4,707	$	—
Commercial real estate	40,133		64,424		n/a		31,736		283
Construction and land	1,310		2,682		n/a		5,532		97
Residential	2,337		2,594		n/a		8,885		312
Home equity	360		360		n/a		355		3
Consumer and other	—		—		n/a		40		—
Subtotal	47,414		74,559		n/a		51,255		695
With an allowance recorded:
Commercial and industrial	1,149		1,191		$	118	1,855		1
Commercial real estate	18,519		19,814		1,667		24,510		727
Construction and land	903		953		189		1,486		—
Residential	13,539		13,798		1,403		11,781		374
Home equity	—		—		—		114		5
Consumer and other	—		—		—		—		—
Subtotal	34,110		35,756		3,377		39,746		1,107
Total:
Commercial and industrial	4,423		5,690		118		6,562		1
Commercial real estate	58,652		84,238		1,667		56,246		1,010
Construction and land	2,213		3,635		189		7,018		97
Residential	15,876		16,392		1,403		20,666		686
Home equity	360		360		—		469		8
Consumer and other	—		—		—		40		—
Total	$	81,524	$	110,315	$	3,377	$	91,001	$	1,802

___________________

(1) Recorded investment represents the client loan balance net of historical charge-offs and historical nonaccrual interest paid, 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 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 reserve allocations 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 cost or estimated fair value in the aggregate and are excluded from the allowance for loan losses analysis.

28

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

The Bank may, under certain circumstances, restructure loans as a concession to borrowers who have experienced financial difficulty. Such loans are classified as TDRs and are included in impaired loans. TDRs typically result from the Company’s loss mitigation activities which, among other things, could include rate reductions, payment extensions, and principal forgiveness. TDRs totaled $61.2 million and $54.5 million at March 31, 2013 and December 31, 2012, respectively. Of the $61.2 million in TDRs at March 31, 2013, $29.9 million were on accrual status. Of the $54.5 million in TDRs at December 31, 2012, $26.7 million were on accrual status.

Since all TDRs 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 reserve on the loan based on loan type. 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 considered impaired. Therefore, there is generally not a material change to the allowance for loan losses when a loan is categorized as a TDR.

The following tables present the balance of TDRs that were restructured or defaulted during the periods indicated:

	As of and for the three months ended March 31, 2013
	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)	2	$	1,219	$	1,219	—	$	—
Commercial real estate (2)	5	9,163		9,163		1	561
Construction and land (3)	1	347		347		—	—
Residential	—	—		—		—	—
Home equity	—	—		—		—	—
Consumer and other	—	—		—		—	—
Total	8	$	10,729	$	10,729	1	$	561

___________________

(1) Represents the following concessions: extension of term (1 loan; post-modification recorded investment of $1.0 million); and temporary rate reduction (1 loan; post-modification recorded investment of $0.2 million).

(2) Represents the following concessions: extension of term (4 loans; post-modification recorded investment of $9.0 million); and combination of concessions (1 loan; post-modification recorded investment of $0.2 million).

(3) Represents the following concessions: extension of term.

29

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

	As of and for the three months ended March 31, 2012
	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	—	$	—	$	—	—	$	—
Commercial real estate (1)	4	5,545		5,545		—	—
Construction and land	—	—		—		—	—
Residential (2)	8	3,702		3,702		—	—
Home equity	—	—		—		—	—
Consumer and other	—	—		—		—	—
Total	12	$	9,247	$	9,247	—	$	—

___________________

(1) Represents the following concessions: extension of term (3 loans; post-modification recorded investment of $2.7 million); and combination of concessions (1 loan; post-modification recorded investment of $2.8 million).

(2) Represents the following concessions: payment deferral (1 loan; post-modification recorded investment of $1.9 million); temporary rate reduction (6 loans; post-modification recorded investment of $0.5 million); and combination of concessions (1 loan; post-modification recorded investment of $1.3 million).

30

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 $82.3 million and $84.1 million at March 31, 2013 and December 31, 2012, 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 March 31,
	2013			2012
	(In thousands)
Allowance for loan losses, beginning of period:
Commercial and industrial	$	11,825		$	12,163
Commercial real estate	52,497			63,625
Construction and land	5,016			6,382
Residential	10,892			9,286
Home equity	1,085			1,535
Consumer and other	540			1,149
Unallocated	2,202			1,974
Total allowance for loan losses, beginning of period	84,057			96,114
Provision/ (credit) for loan losses:
Commercial and industrial	(114		)	1,827
Commercial real estate	(919		)	2,030
Construction and land	(1,036		)	(712		)
Residential	1,827			966
Home equity	398			(53		)
Consumer and other	(74		)	(116		)
Unallocated	(82		)	58
Total provision/ (credit) for loan losses	—			4,000
Loans charged-off:
Commercial and industrial	$	(27	)	$	(2,311	)
Commercial real estate	(1,239		)	(406		)
Construction and land	—			—
Residential	(1,265		)	(198		)
Home equity	(360		)	—
Consumer and other	(2		)	(26		)
Total charge-offs	(2,893		)	(2,941		)
Recoveries on loans previously charged-off:
Commercial and industrial	165			383
Commercial real estate	127			117
Construction and land	807			166
Residential	—			—
Home equity	23			61
Consumer and other	—			2
Total recoveries	1,122			729

31

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

	As of and for the three months ended March 31,
	2013		2012
	(In thousands)
Allowance for loan losses at end of period:
Commercial and industrial	11,849		12,062
Commercial real estate	50,466		65,366
Construction and land	4,787		5,836
Residential	11,454		10,054
Home equity	1,146		1,543
Consumer and other	464		1,009
Unallocated	2,120		2,032
Total allowance for loan losses at end of period	$	82,286	$	97,902

The following tables present the Company’s allowance for loan losses and loan portfolio at March 31, 2013 and December 31, 2012 by portfolio segment, disaggregated by method of impairment analysis. The Company had no loans acquired with deteriorated credit quality at March 31, 2013 or December 31, 2012.

	Commercial and industrial		Commercial real estate		Construction and land		Residential
	(In thousands)
Allowance for loan losses balance at March 31, 2013 attributable to:
Loans collectively evaluated	$	11,480	$	48,020	$	4,370	$	9,958
Loans individually evaluated	369		2,446		417		1,496
Total allowance for loan losses	$	11,849	$	50,466	$	4,787	$	11,454
Recorded investment (loan balance) at March 31, 2013:
Loans collectively evaluated	$	777,408	$	1,624,618	$	144,018	$	1,881,133
Loans individually evaluated	11,104		63,823		4,899		17,280
Total Loans	$	788,512	$	1,688,441	$	148,917	$	1,898,413

	Home equity		Consumer and other		Unallocated		Total
(Continued from above)	(In thousands)
Allowance for loan losses balance at March 31, 2013 attributable to:
Loans collectively evaluated	$	1,146	$	464	$	2,120	$	77,558
Loans individually evaluated	—		—		—		4,728
Total allowance for loan losses	$	1,146	$	464	$	2,120	$	82,286
Recorded investment (loan balance) at March 31, 2013:
Loans collectively evaluated	$	118,142	$	141,002	$	—	$	4,686,321
Loans individually evaluated	40		—		—		97,146
Total Loans	$	118,182	$	141,002	$	—	$	4,783,467

32

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

	Commercial and industrial		Commercial real estate		Construction and land		Residential
	(In thousands)
Allowance for loan losses balance at December 31, 2012 attributable to:
Loans collectively evaluated	$	11,707	$	50,830	$	4,827	$	9,489
Loans individually evaluated	118		1,667		189		1,403
Total allowance for loan losses	$	11,825	$	52,497	$	5,016	$	10,892
Recorded investment (loan balance) at December 31, 2012:
Loans collectively evaluated	$	801,903	$	1,632,698	$	135,357	$	1,890,213
Loans individually evaluated	4,423		58,652		2,213		15,876
Total Loans	$	806,326	$	1,691,350	$	137,570	$	1,906,089

	Home equity		Consumer and other		Unallocated		Total
(Continued from above)	(In thousands)
Allowance for loan losses balance at December 31, 2012 attributable to:
Loans collectively evaluated	$	1,085	$	540	$	2,202	$	80,680
Loans individually evaluated	—		—		—		3,377
Total allowance for loan losses	$	1,085	$	540	$	2,202	$	84,057
Recorded investment (loan balance) at December 31, 2012:
Loans collectively evaluated	$	123,191	$	149,250	$	—	$	4,732,612
Loans individually evaluated	360		—		—		81,524
Total Loans	$	123,551	$	149,250	$	—	$	4,814,136

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 fixed and variable rate loan assets and fixed and variable rate borrowings.

33

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

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 March 31, 2013 and December 31, 2012.

	March 31, 2013							December 31, 2012
	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	$	—	Other liabilities	$	(4,750	)	Other assets	$	—	Other liabilities	$	(5,189	)
Derivatives not designated as hedging instruments:
Interest rate products	Other assets	2,664		Other liabilities	(2,746		)	Other assets	2,915		Other liabilities	(3,047		)
Foreign exchange contracts	Other assets	216		Other liabilities	(216		)	Other assets	120		Other liabilities	(120		)
Total		$	2,880		$	(7,712	)		$	3,035		$	(8,356	)

___________________

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

The following table presents the effect of the Company’s derivative financial instruments in the consolidated statements of operations for the three months ended March 31, 2013 and 2012.

Derivatives in cash flow hedging relationships	Amount of gain or (loss) recognized in OCI on derivative (effective portion)						Location of gain or (loss) reclassified from accumulated OCI into income (effective portion)	Amount of gain or (loss) reclassified from accumulated OCI into income (effective portion)
	three months ended March 31,							three months ended March 31,
	2013			2012				2013			2012
(In thousands)
Interest rate products	$	(22	)	$	(277	)	Interest income	$	(461	)	$	(416	)
Total	$	(22	)	$	(277	)		$	(461	)	$	(416	)

The following table presents the components of the Company’s accumulated other comprehensive income/ (loss) related to the derivatives for the three months ended March 31, 2013 and 2012.

	Three months ended March 31,
	2013			2012
	(In thousands)
Accumulated other comprehensive income on cash flow hedges, balance at beginning of period	$	(2,969	)	$	(3,106	)
Net change in unrealized gain/ (loss) on cash flow hedges	207			81
Accumulated other comprehensive income on cash flow hedges, balance at end of period	$	(2,762	)	$	(3,025	)

Cash Flow Hedges of Interest Rate Risk

The Company’s objective in using derivatives is to add stability to interest income and expense and to manage the risk related to exposure to changes in interest rates. To accomplish this objective, the Holding Company entered into an interest rate swap in the second quarter of 2010 with a notional amount of $75 million related to the Holding Company’s cash outflows associated with the subordinated debt related to trust preferred securities to protect against an increase in the London Interbank Offered Rate (“LIBOR”). The interest rate swap had an effective date of December 30, 2010 and a term of five years. As of December 30, 2010, the subordinated debt switched from a fixed rate of 6.25% to a variable rate of three-month LIBOR plus

34

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

1.68%. The interest rate swap effectively fixed the Holding Company’s interest rate payments on the $75 million of debt at 4.45%.

The Company uses 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 assesses 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 is 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 is recorded as a gain or loss in the consolidated statement of operations as part of fees and other income. The Holding Company had no hedge ineffectiveness recognized in earnings during the three months ended March 31, 2013 and 2012. The Holding Company also monitors the risk of counterparty default on an ongoing basis.

A portion of the balance reported in accumulated other comprehensive income related to derivatives will be reclassified to interest income or expense as interest payments are made or received on the Holding Company’s interest rate swap. During the next twelve months, the Holding Company estimates that $1.8 million will be reclassified as an increase in interest expense.

Non-designated Hedges

Derivatives not designated as hedges are not speculative and result from two 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. Fees earned in connection with the execution of derivatives related to this program are recognized in the consolidated statement of operations in other income. The derivative asset and liability values above include an adjustment related to the consideration of credit risk required under ASC 820, of less than ($0.1) million and $0.1 million in earnings for the three months ended March 31, 2013 and 2012. As of March 31, 2013 and December 31, 2012, the Bank had eight and 11 interest rate swaps with an aggregate notional amount of $52.1 million and $55.7 million, respectively, related to this program. As of March 31, 2013 and December 31, 2012, the Bank also had 14 and six, respectively, foreign currency exchange contracts with notional amounts of $10.7 million and $3.7 million, respectively, related to this program.

The following table presents the effect of the Company’s derivative financial instruments, not designated as hedging instruments, in the consolidated statement of operations for the three months ended March 31, 2013 and 2012.

Derivatives Not Designated as Hedging Instruments	Location of Gain or (Loss) Recognized in Income on Derivative	Amount of Gain or (Loss), Net, Recognized in Income on Derivative Three Months Ended March 31,
		2013			2012
		(In thousands)
Interest rate products	Other income/ expense	$	(4	)	$	81
Foreign exchange contracts	Other income/ expense	2			—
Total		$	(2	)	$	81

The Holding Company and the Bank have agreements with their derivative counterparties that contain provisions where, if the Holding Company or Bank defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Holding Company or the Bank could also be declared in default on its derivative obligations. The Holding Company and the Bank were in compliance with these provisions as of March 31, 2013 and December 31, 2012.

The Holding Company and the Bank also have agreements with certain of their derivative counterparties that contain provisions where, if the Holding Company or Bank fails to maintain its status as a well- or adequately-capitalized institution, then the counterparty could terminate the derivative positions and the Holding Company or the Bank would be required to settle its obligations under the agreements. The Holding Company and the Bank were in compliance with these provisions as of March 31, 2013 and December 31, 2012.

35

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

Certain of the Holding Company and the Bank’s agreements with their derivative counterparties contain provisions where if specified events or conditions occur that materially change the Holding Company’s or the Bank’s creditworthiness in an adverse manner, the Holding Company or the Bank may be required to fully collateralize their obligations under the derivative instruments. The Holding Company and the Bank were in compliance with these provisions as of March 31, 2013 and December 31, 2012.

As of March 31, 2013 and December 31, 2012, the termination amounts related to collateral determinations of derivatives in a liability position was $7.6 million and $8.4 million, respectively. The Company has minimum collateral posting thresholds with its derivative counterparty and has posted collateral of $10.4 million as of March 31, 2013 and December 31, 2012, against its obligation under this agreement.

9.    Income Taxes

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

	Three months ended March 31,
	2013			2012
	(In thousands)
Income from continuing operations:
Income before income taxes	$	18,308		$	12,595
Income tax expense	5,897			3,851
Net income from continuing operations	$	12,411		$	8,744
Effective tax rate, continuing operations	32.2		%	30.6		%
Income from discontinued operations:
Income before income taxes	$	3,036		$	2,752
Income tax expense	1,314			1,198
Net income from discontinued operations	$	1,722		$	1,554
Effective tax rate, discontinued operations	43.3		%	43.5		%
Income attributable to noncontrolling interests:
Income before income taxes	$	930		$	793
Income tax expense	—			—
Net income attributable to noncontrolling interests	$	930		$	793
Effective tax rate, noncontrolling interests	—		%	—		%
Income attributable to the Company
Income before income taxes	$	20,414		$	14,554
Income tax expense	7,211			5,049
Net income attributable to the Company	$	13,203		$	9,505
Effective tax rate attributable to the Company	35.3		%	34.7		%

The effective tax rate for continuing operations for the three months ended March 31, 2013 of 32.2%, with related tax expense of $5.9 million, was calculated based on a projected 2013 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 three months ended March 31, 2012 of 30.6%, with related tax expense of $3.9 million, was calculated based on a projected 2012 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.

36

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

The effective tax rate for continuing operations for the three months ended March 31, 2013 is greater than the effective tax rate for the same period in 2012 due primarily to earnings from tax-exempt investments, income tax credits, and income attributable to noncontrolling interests having a smaller impact on the effective tax rate, due primarily to the higher level of income before taxes in 2013 compared to 2012.

Contingent consideration related to the 2009 divestiture of certain affiliates, primarily related to the revenue sharing agreement with Westfield Capital Management Company, LLC, is also reflected under “discontinued operations” in the table above. The profits and losses attributable to owners other than the Company are reflected under “noncontrolling interests” in the table above.

10.    Noncontrolling Interests

At the Company, noncontrolling interests typically 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 $0.9 million and $0.8 million for the three months ended March 31, 2013 and 2012, 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 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 total shareholders’ equity. The Company had no noncontrolling interests included in shareholder’s equity at March 31, 2013 and December 31, 2012. However, 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 of $17.4 million and $19.3 million at March 31, 2013 and December 31, 2012, respectively. The aggregate amount of such redeemable noncontrolling equity interests are recorded at the estimated maximum redemption values.

Each 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, 2012.

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.

37

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

The following table presents the contractually determined maximum redemption values to repurchase the noncontrolling interests at the periods indicated:

	March 31, 2013		December 31, 2012
	(In thousands)
Anchor	$	11,122	$	11,105
BOS	3,900		5,782
DGHM	2,416		2,400
Total	$	17,438	$	19,287

The following table presents an analysis of the Company’s redeemable noncontrolling interests for the periods indicated:

	Three months ended March 31,
	2013			2012
	(In thousands)
Redeemable noncontrolling interests at beginning of year	$	19,287		$	21,691
Net income attributable to noncontrolling interests	930			793
Distributions	(729		)	(445		)
Adjustments to fair value	(2,050		)	(435		)
Redeemable noncontrolling interests at end of period	$	17,438		$	21,604

11.    Restructuring

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

During the second half of 2012, the Company implemented a senior executive restructuring of the Holding Company leadership and Bank management. The purpose of this restructuring was to create a more streamlined organization and to refine the Company’s cost base. To implement the new structure the Company incurred an additional severance charge of $4.8 million. The Company expects no additional severance charges associated with this initiative.

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

38

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

The following table presents a summary of the restructuring activity for the three months ended March 31, 2013 and 2012.

	Severance Charges			Contract Termination Fees		Professional Expenses			Other Associated Costs			Total
	(In thousands)
Accrued charges at December 31, 2011	$	2,658		$	211	$	230		$	—		$	3,099
Costs incurred	(1		)	—		128			8			135
Costs paid	(459		)	—		(254		)	(8		)	(721		)
Accrued charges at March 31, 2012	$	2,198		$	211	$	104		$	—		$	2,513
Accrued charges at December 31, 2012	$	3,517		$	98	$	8		$	—		$	3,623
Costs incurred	—			—		—			—			—
Costs paid	(736		)	—		(8		)	—			(744		)
Accrued charges at March 31, 2013	$	2,781		$	98	$	—		$	—		$	2,879

12.    Recent Accounting Pronouncements

In February 2013, the FASB issued ASU No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The amendments to this update require entities to present information about reclassifications out of accumulated other comprehensive income in a single note or on the face of the financial statements. The new guidance was effective for fiscal years, and interim periods within those years, beginning after December 15, 2012, with early adoption permitted. The Company did not early adopt. The adoption of this ASU did not have a material effect on the Company’s consolidated financial statements.

In July 2012, the FASB issued updated guidance, ASU 2012-02, Intangibles - Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment. The amendments in this update regarding the impairment testing applicable to indefinite-lived intangible assets, is similar to the impairment guidance issued in ASU 2011-08, Intangibles - Goodwill and Other (Topic 350): Testing Goodwill for Impairment, applicable to goodwill. Under the updated guidance, an entity may assess qualitative factors (such as changes in management, key personnel, strategy, key technology or customers) that may impact the fair value of the indefinite-lived intangible asset and lead to the determination that it is more likely than not that the fair value of the asset is less than its carrying value. If an entity determines that it is more likely than not that the fair value of the intangible asset is less than its carrying value, an impairment test must be performed. The impairment test requires an entity to calculate the estimated fair value of the indefinite-lived intangible asset. If the carrying value of the indefinite-lived intangible asset exceeds its estimated fair value, an impairment loss is recognized in an amount equal to the excess. The updated guidance is effective for annual and interim indefinite-lived intangible asset impairment tests performed for fiscal years beginning after September 15, 2012 and early adoption is permitted provided the Company has not yet performed its 2012 impairment test or issued its financial statements. The Company did not early adopt. The adoption of this ASU did not have a material effect on the Company’s consolidated financial statements.

In December 2011, the FASB issued new guidance, ASU 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities and in January 2013, the FASB issued, ASU 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. ASU 2011-11 requires entities to disclose both gross and net information about both instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject to an agreement similar to a master netting arrangement. ASU 2013-01 limits the scope of disclosures to derivatives, repurchase agreements and securities lending arrangements. The new guidance is effective for fiscal years, and interim periods within those years, beginning after January 1, 2013 and requires a retrospective application for all comparative periods which are presented. The adoption of these ASUs did not have a material effect on the Company’s consolidated financial statements.

39

BOSTON PRIVATE FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements - (Continued)

13.    Subsequent Events

The Company evaluated subsequent events through the date the accompanying unaudited interim consolidated financial statements were issued. Pursuant to the requirements of ASC 855, Subsequent Events, there were no events or transactions during the subsequent event reporting period that required disclosure in the unaudited consolidated interim financial statements, other than the two transactions discussed below.

On April 24, 2013, the Company closed the public offering of 2,000,000 depositary shares (the “Depositary Shares”) pursuant to an Underwriting Agreement dated April 17, 2013, previously disclosed by the Company. Each Depositary Share represents a 1/40th interest in a share of the Company’s 6.95% Non-Cumulative Perpetual Preferred Stock, Series D, par value $1.00 per share and liquidation preference of $1,000 per share (the “Series D Preferred Stock”).

Upon the issuance of the Series D Preferred Stock on April 24, 2013, the ability of the Company to declare and pay dividends on, or purchase, redeem or otherwise acquire, shares of its preferred stock or any securities of the Company that rank junior to the Series D Preferred Stock was subject to certain restrictions in the event that the Company does not declare and pay (or set aside) dividends on the Series D Preferred Stock for the last preceding dividend period.

Also on April 24, 2013, the Company repurchased all 400.81221 shares of the Company’s Series B Non-Cumulative Perpetual Contingent Convertible Preferred Stock, par value $1.00 per share, held by BP Holdco, L.P. pursuant to a Stock Repurchase Agreement, dated as of April 16, 2013, previously disclosed by the Company.

40

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

As of and for the three months ended March 31, 2013

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, investment management and wealth advisory activities; changes in interest rates; competitive pressures from other financial institutions; the effects of continued weakness in general economic conditions on a national basis or in the local markets in which the Company operates, including changes which adversely affect borrowers’ ability to service and repay our loans; changes in the value of the 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; 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; 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.

41

Executive Summary

The Company offers a wide range of wealth management services to high net worth individuals, families, businesses and select institutions through its three reportable segments: Private Banking, 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 first quarter of 2013. Details of the matters addressed in this summary are provided elsewhere in this document and, in particular, in the sections immediately following.

	Three months ended March 31,							% Change
	2013		2012		Change
	(In thousands, except per share data)
Total revenues	$	74,872	$	72,222	$	2,650		4	%
Provision/ (credit) for loan losses	—		4,000		(4,000		)	nm
Total operating expenses	56,564		55,627		937			2	%
Net income from continuing operations	12,411		8,744		3,667			42	%
Net income attributable to noncontrolling interests	930		793		137			17	%
Net income attributable to the Company	13,203		9,505		3,698			39	%
Diluted earnings per share:
From continuing operations	$	0.13	$	0.09	$	0.04		44	%
From discontinued operations	$	0.02	$	0.02	$	—		—	%
Attributable to common shareholders	$	0.15	$	0.11	$	0.04		36	%

________________

nm =    not meaningful

Net income attributable to the Company was $13.2 million for the three months ended March 31, 2013, compared to $9.5 million in the same period of 2012. The Company recognized diluted earnings per share of $0.15 for the three months ended March 31, 2013, compared to diluted earnings per share of $0.11 for the same period of 2012.

Key items that affected the Company’s results in the first quarter of 2013 compared to the same period of 2012 include:

▪ The Company recorded no provision for loan losses for the three months ended March 31, 2013, compared to a provision for loan losses of $4.0 million in the same period of 2012. The lack of provision in the three months ended March 31, 2013 was driven by a reduction in classified loans and continued improvement in credit quality, the decrease in the loan portfolio, and the change in the mix of the loan portfolio.

▪ The low interest rate environment continues to affect net interest income. Net interest margin (“NIM”) decreased 14 basis points to 3.13% for the three months ended March 31, 2013 compared to the same period in 2012. Net interest income for the three months ended March 31, 2013 was $44.3 million, a decrease of $0.5 million, or 1%, compared to the same period in 2012. This decrease was due to lower average yields on loans and investments, partially offset by lower average rates paid on the Company’s deposits and borrowings, and the increase in the average volume of the loan portfolio.

▪ Fee and other income increased $3.1 million, or 11%, for the three months ended March 31, 2013 compared to the same period in 2012. Investment management and trust fees and wealth advisory fees increased as a result of increased AUM due to market appreciation and positive net flows.

▪ AUM increased 14% to $21.9 billion at March 31, 2013 compared to the same period in 2012. First quarter 2013 AUM net inflows were $181 million, up from $84 million in the same period in 2012.

The Company’s Private Banking segment reported net income attributable to the Company of $13.8 million in the first quarter of 2013, compared to net income attributable to the Company of $9.8 million in the same period of 2012. The $4.0 million, or 41%, increase was a result of recording no provision for loan losses in the first quarter of 2013, increased noninterest income, and reduced noninterest expense, offset by decreased net interest income and increased income tax expense for the three months ended March 31, 2013. AUM increased $0.5 billion, or 13%, to $4.2 billion at March 31, 2013 from $3.7 billion at March 31, 2012, due to both net inflows and investment performance.

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The Company’s Investment Management segment reported net income attributable to the Company of $1.1 million in the first quarter of 2013, compared to net income attributable to the Company of $0.8 million in the same period of 2012. The $0.3 million, or 34%, increase was primarily due to increases in investment management and trust fees. Most fee-based revenue is determined based on beginning-of-period AUM data, and, as a result, the increase in investment management and trust fees was related to changes in AUM from December 31, 2011 through December 31, 2012. AUM increased $1.3 billion, or 16%, to $9.3 billion at March 31, 2013 from $8.0 billion at March 31, 2012, due to investment performance.

The Company’s Wealth Advisory segment reported net income attributable to the Company of $1.2 million in the first quarter of 2013, compared to net income attributable to the Company of $1.2 million in the same period of 2012. The $0.8 million increase in wealth advisory fee revenue was offset by increased operating expenses, including a legal settlement expense, increased salaries and employee benefits expense and increased professional services expense. AUM increased $0.9 billion, or 12%, to $8.5 billion at March 31, 2013 from $7.6 billion at March 31, 2012, due to positive net flows and investment performance.

Critical Accounting Policies

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, 2012. There have been no changes to these policies through the filing of this Quarterly Report on Form 10-Q.

Financial Condition

Condensed Consolidated Balance Sheets and Discussion

	March 31, 2013		December 31, 2012		Increase/ (decrease)			% Change
	(In thousands)
Assets:
Total cash and investments	$	831,182	$	1,050,025	$	(218,843	)	(21	)%
Loans held for sale	289,180		308,390		(19,210		)	(6	)%
Total loans	4,783,467		4,814,136		(30,669		)	(1	)%
Less: Allowance for loan losses	82,286		84,057		(1,771		)	(2	)%
Net loans	4,701,181		4,730,079		(28,898		)	(1	)%
Goodwill and intangible assets	133,993		135,054		(1,061		)	(1	)%
Other assets	240,885		241,457		(572		)	—	%
Total assets	$	6,196,421	$	6,465,005	$	(268,584	)	(4	)%
Liabilities and Equity:
Deposits	$	4,517,351	$	4,885,059	$	(367,708	)	(8	)%
Deposits held for sale	188,252		194,084		(5,832		)	(3	)%
Total borrowings	767,433		668,087		99,346			15	%
Other liabilities	88,869		95,386		(6,517		)	(7	)%
Total liabilities	5,561,905		5,842,616		(280,711		)	(5	)%
Redeemable noncontrolling interests	17,438		19,287		(1,849		)	(10	)%
Total shareholders’ equity	617,078		603,102		13,976			2	%
Total liabilities, redeemable noncontrolling interests and shareholders’ equity	$	6,196,421	$	6,465,005	$	(268,584	)	(4	)%

43

Total Assets. Total assets decreased$268.6 million, or 4%, to $6.2 billion at March 31, 2013 from $6.5 billion at December 31, 2012. This decrease was due to deposit outflows in the first three months of 2013.

Cash and Investments. Total cash and investments (consisting of cash and cash equivalents, investment securities, and stock in the FHLBs) decreased$0.2 billion, or 21%, to $0.8 billion, or 13% of total assets at March 31, 2013 from $1.1 billion, or 16% of total assets at December 31, 2012. The decrease was due to the $254.6 million, or 82%, decrease in cash and cash equivalents, partially offset by the $37.3 million, or 5%, increase in investment securities. The decrease in cash and cash equivalents is the net result of short-term fluctuations in liquidity due to changes in levels of deposits, borrowings and loans outstanding.

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, principal payments, and sales of the Company’s available for sale securities provided $0.1 billion of cash proceeds during the three months ended March 31, 2013, which was used to purchase new investments or fund new loans. The timing of sales and reinvestments is based on various factors, including management’s evaluation of interest rate trends, the credit risk of municipal securities and the Company’s liquidity. The Company’s available for sale investment portfolio carried a total of $9.0 million of unrealized gains and $1.4 million of unrealized losses at March 31, 2013, compared to $9.9 million of unrealized gains and $1.1 million of unrealized losses at December 31, 2012.

No impairment losses were recognized through earnings related to available for sale securities during the three months ended March 31, 2013 and 2012. The amount of investment securities in an unrealized loss position greater than 12 months as well as the total amount of unrealized losses was not significant and was primarily due to movements in interest rates since the securities were purchased. At March 31, 2013, the Company had no intent to sell any securities in an unrealized loss position at that date 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 losses.

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 decreased$19.2 million, or 6%, to $289.2 million at March 31, 2013 from $308.4 million at December 31, 2012. Within loans held for sale on the consolidated balance sheet, $273.6 million of the balance at March 31, 2013 and $276.7 million of the balance at December 31, 2012 relates to the previously announced agreement to sell the Bank’s three Pacific Northwest offices. Excluding the loans held for sale related to the Pacific Northwest transaction, loans held for sale decreased $16.1 million from December 31, 2012 to March 31, 2013. The balance of loans held for sale is usually related 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.

Goodwill and intangible assets, net. Goodwill and intangible assets decreased$1.1 million, or 1%, to $134.0 million at March 31, 2013 from $135.1 million at December 31, 2012. The decrease is due to amortization of intangible assets. The Company tests goodwill for impairment on an annual basis and between annual dates if events or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying value, in accordance with ASC 350, Intangibles-Goodwill and Other. Management concluded at March 31, 2013 that there were no triggering events during the three months then ended. Management will perform its annual goodwill impairment testing in the fourth quarter of 2013.

Other. Other assets, consisting of OREO, premises and equipment, fees receivable, accrued interest receivable, deferred income taxes, net, and other assets, remained relatively flat at $240.9 million at March 31, 2013 compared to $241.5 million at December 31, 2012. Decreases in deferred income taxes, net, OREO, and other assets was offset by increases in fees receivable and premises and equipment.

OREO decreased$1.3 million, or 36%, to $2.3 million at March 31, 2013 from $3.6 million at December 31, 2012. The decrease is due to the sale of one OREO property during the first quarter of 2013.

Deferred income taxes, net decreased$1.6 million, or 3%, to $60.6 million at March 31, 2013 from $62.2 million at December 31, 2012. The decrease is primarily due to current year deferred tax expense, as well as certain stock compensation awards that have expired during the first three months of 2013. At March 31, 2013, no valuation allowance on the net deferred tax asset was required, other than for capital losses, due primarily to the expectation of future taxable income.

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Other assets, which consist primarily of Bank-Owned Life Insurance (“BOLI”), prepaid expenses, investment in partnerships, the fair value of interest rate derivatives, and other receivables, decreased$1.3 million, or 1%, to $123.7 million at March 31, 2013 from $125.0 million at December 31, 2012. The decrease is primarily due to changes in the fair value of other investments and the settlement of certain receivables, slightly offset by increases in prepaid rent.

Deposits. Total deposits decreased$367.7 million, or 8%, to $4.5 billion, at March 31, 2013 from $4.9 billion at December 31, 2012. Deposit balances declined during the first quarter of 2013 due to expected outflows from several client accounts with high balances at year end 2012. 

The following table presents the composition of the Company’s deposits at March 31, 2013 and December 31, 2012:

	March 31, 2013				December 31, 2012
	Balance		as a % of total		Balance		as a % of total
	(In thousands)
Demand deposits	$	1,061,053	24	%	$	1,349,594	28	%
NOW	464,564		10	%	482,647		10	%
Savings	91,482		2	%	87,054		2	%
Money market	2,220,254		49	%	2,297,847		47	%
Certificates of deposit under $100,000	193,421		4	%	211,032		4	%
Certificates of deposit of $100,000 or greater	486,577		11	%	456,885		9	%
Total deposits (1)	$	4,517,351	100	%	$	4,885,059	100	%

____________

(1) Does not include deposits held for sale of $188.3 million and $194.1 million at March 31, 2013 and December 31, 2012, respectively.

Borrowings. Total borrowings (consisting of securities sold under agreements to repurchase, federal funds purchased, FHLB borrowings, and junior subordinated debentures) increased$99.3 million, or 15%, to $0.8 billion at March 31, 2013 from $0.7 billion at December 31, 2012. Federal funds purchased increased$50.0 million, or 100%, at March 31, 2013 from none at December 31, 2012. From time to time, the Bank purchases federal funds from the FHLB and other banking institutions to supplement its liquidity position. FHLB borrowings increased$53.3 million, or 13%, to $461.4 million at March 31, 2013 from $408.1 million at December 31, 2012. 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. Repurchase agreements increased$5.9 million, or 5%, to $122.2 million at March 31, 2013 from $116.3 million at December 31, 2012. Repurchase agreements are generally linked to commercial demand deposit accounts with an overnight sweep feature. These increases were partially offset by the repurchase of $9.8 million of the Company’s junior subordinated debentures during the quarter.

Other. Other liabilities, which consist primarily of accrued interest, accrued bonus, the fair value of interest rate derivatives, and other accrued expenses decreased$6.5 million, or 7%, to $88.9 million at March 31, 2013 from $95.4 million at December 31, 2012. The decrease is primarily due to payments on 2012 accrued compensation and other payables.

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Loan Portfolio and Credit Quality

Loans. Total portfolio loans decreased$30.7 million, or 1%, to $4.8 billion, or 77%, of total assets at March 31, 2013, from $4.8 billion, or 74%, of total assets at December 31, 2012. Decreases in commercial and industrial loans of $17.8 million, or 2%, home equity and other consumer loans of $13.6 million or 5%, residential loans of $7.7 million, or 0%, and commercial real estate loans of $2.9 million, or 0%, were partially offset by an increase in construction and land loans of $11.3 million, or 8%.

Geographic concentration. The following table presents the Bank’s outstanding loan balance concentrations at March 31, 2013 based on the location of the lender’s regional offices. Loans from the Holding Company to certain principals of the Company’s affiliate partners and relating to the sale of a previous affiliate partner, and loans at the Company’s non-banking segments are identified as “Other, net.” 

	Commercial and Industrial				Commercial Real Estate				Construction and Land				Residential				Home Equity and Other Consumer
	Amount		Percent		Amount		Percent		Amount		Percent		Amount		Percent		Amount		Percent
	(In thousands)
New England	$	672,895	85	%	$	643,756	38	%	$	99,989	67	%	$	1,163,647	61	%	$	204,563	79	%
San Francisco Bay	61,806		8	%	642,170		38	%	37,923		26	%	436,577		23	%	42,537		16	%
Southern California	53,811		7	%	402,515		24	%	11,005		7	%	298,189		16	%	11,889		5	%
Other, net	—		—	%	—		—	%	—		—	%	—		—	%	195		—	%
Total	$	788,512	100	%	$	1,688,441	100	%	$	148,917	100	%	$	1,898,413	100	%	$	259,184	100	%

The allowance for loan losses is reported as a reduction of outstanding loan balances, and totaled $82.3 million and $84.1 million at March 31, 2013 and December 31, 2012, respectively.

The allowance for loan losses at March 31, 2013decreased$1.8 million, or 2%, from December 31, 2012 due to net charge-offs. No provision was booked in the first quarter of 2013 due primarily to the decline in adversely-classified loans, continued positive trends in net loan loss experience, a slight reduction in total loans, and the change in the mix of the loan portfolio. The allowance for loan losses as a percentage of total loans decreased3 basis points to 1.72% at March 31, 2013 from 1.75% at December 31, 2012. 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, which includes significant 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 reserve, allocated reserves on non-impaired special mention and accruing substandard loans, and allocated reserves on impaired loans). In addition, an unallocated component which is not considered to be a significant portion of the overall allowance for loan losses is maintained due to the general imprecision and variable nature of qualitative factors and other estimates used to determine the allowance for loan losses. See Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 7: Allowance for Loan Losses” and the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 for further information.

46

The following table presents a summary of loans charged-off, net of recoveries, by geography for the three months ended March 31, 2013 and 2012, respectively. The geography assigned to the Private Banking data is based on the location of the lender’s regional offices.

	Three months ended March 31,
	2013			2012
	(In thousands)
Net loans (charged-off)/ recovered:
New England	$	(1,236	)	$	(341	)
San Francisco Bay	(1,508		)	(1,980		)
Southern California	973			(72		)
Pacific Northwest	—			181
Total net loans (charged-off)/ recovered	$	(1,771	)	$	(2,212	)

Net charge-offs of $1.8 million were recorded in the first quarter of 2013, compared to $2.2 million of net charge-offs in the same period of 2012. The Company believes that commercial loans, which include construction and land loans, commercial real estate, and commercial and industrial loans, represent the greatest risk of loss due to the size and nature of these loans and the related collateral. Local economic and business conditions in the markets where our Bank offices are located have a significant impact on our commercial loan customers and their ability to service their loans. Of the $1.8 million in net charge-offs recorded in the three months of 2013, $1.3 million were on residential loans, $0.4 million were on home equity loans, and $1.1 million were on commercial real estate loans, offset by net recoveries of $0.8 million on construction and land loans and $0.2 million on commercial and industrial loans.

Nonperforming assets. The Company’s nonperforming assets include nonaccrual loans and OREO. OREO consists of real estate acquired through foreclosure proceedings and real estate acquired through acceptance of deeds in lieu of foreclosure. In addition, the Company may, under certain circumstances, restructure loans in troubled debt restructurings as a concession to a borrower when the borrower is experiencing financial distress. Such restructured loans are generally included in impaired loans. Nonperforming assets increased $11.0 million, or 17%, to $75.4 million, or 1.22% of total assets at March 31, 2013, from $64.4 million, or 1.00% of total assets at December 31, 2012. Nonperforming assets as of March 31, 2013 do not include $0.5 million of OREO in the Pacific Northwest region which is anticipated to be included as part of the sale transaction for that region.

The following table presents a rollforward of nonaccrual loans for the three months endedMarch 31, 2013 and 2012:

	As of and for the three months ended March 31,
	2013			2012
	(In thousands)
Nonaccrual loans, beginning of period	60,745			68,109
Transfers in to nonaccrual status	23,595			19,611
Transfers out to OREO	—			—
Transfers in from loans held for sale	—			—
Transfers out to accrual status	(4,727		)	(8,767		)
Charge-offs	(2,840		)	(2,877		)
Paid off/ paid down	(3,747		)	(3,410		)
Nonaccrual loans, end of period	$	73,026		$	72,666

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The following table presents a summary of the Private Banking credit quality by geography, based on the location of the lender’s regional offices:

	March 31, 2013		December 31, 2012
	(In thousands)
Nonaccrual loans:
New England	$	39,853	$	28,307
San Francisco Bay	25,626		25,105
Southern California	7,547		7,333
Total nonaccrual loans	$	73,026	$	60,745
Loans 30-89 days past due and accruing (1):
New England (2)	$	10,609	$	20,751
San Francisco Bay	5,862		11,771
Southern California	833		13,854
Total loans 30-89 days past due	$	17,304	$	46,376
Accruing substandard loans:
New England	$	17,372	$	27,551
San Francisco Bay	49,306		49,854
Southern California	8,680		12,724
Total accruing substandard loans	$	75,358	$	90,129

_____________________

(1) Does not include one 30-89 day delinquent loan held for sale totaling $0.1 million as of March 31, 2013 and $0.3 million as of December 31, 2012.

(2) In addition to loans 30-89 days past due and accruing, the Company had one loan totaling less than $0.1 million that was 90 days or greater past due but still on accrual status as of March 31, 2013, and three loans totaling $3.6 million as of December 31, 2012, respectively. These loans originated in the New England region.

Of the $73.0 million of loans on nonaccrual status at March 31, 2013, $31.0 million, or 42%, had a current payment status; $9.0 million, or 13%, were 30-89 days past due, and $33.0 million, or 45%, were 90 days or more past due. Of the $60.7 million of nonaccrual loans at December 31, 2012, $38.4 million, or 63%, had a current payment status, $11.0 million, or 18%, were 30-89 days past due, and $11.3 million, or 19%, were 90 days or more past due. In these situations, despite the loan’s 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 generally apply any payments received to principal. See Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 6: Loan Portfolio and Credit Quality” for additional detail on the payment status of nonaccrual loans.

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

	March 31, 2013		December 31, 2012
	(In thousands)
Nonaccrual loans:
Commercial and industrial	$	10,071	$	4,337
Commercial real estate	46,295		41,696
Construction and land	4,552		2,213
Residential	11,759		11,744
Home equity and other consumer	349		755
Total nonaccrual loans	$	73,026	$	60,745
Loans 30-89 days past due and accruing (1):
Commercial and industrial (2)	$	3,450	$	10,894
Commercial real estate	1,719		7,903
Construction and land	312		3,258
Residential	11,525		23,412
Home equity and other consumer	298		909
Total loans 30-89 days past due	$	17,304	$	46,376
Accruing substandard loans:
Commercial and industrial	$	9,108	$	9,062
Commercial real estate	48,178		63,953
Construction and land	4,136		7,369
Residential	12,263		8,072
Home equity and other consumer	1,673		1,673
Total accruing substandard loans	$	75,358	$	90,129

_____________________

(1) In addition to loans 30-89 days past due and accruing, the Company had one construction and land loan totaling less than $0.1 million that was 90 days or greater past due but still on accrual status at March 31, 2013. As of December 31, 2012, the Company had one commercial and industrial loan totaling $0.3 million, one commercial real estate loan totaling $3.2 million, and one construction and land loan totaling less than $0.1 million that were more than 90 days past due but still on accrual status.

(2) Does not include one loan held for sale, 30-89 days past due and accruing, totaling $0.1 million as of March 31, 2013 and $0.3 million as of December 31, 2012.

Nonaccrual and delinquent loans are affected by many factors including economic and business conditions, such as interest rates and unemployment levels, and real estate collateral values, among others. In periods of prolonged economic declines, borrowers may become more severely impacted 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 as 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.

Delinquencies. At March 31, 2013, accruing loans with an aggregate balance of $17.3 million, or 0.36% of total loans, were 30-89 days past due, a decrease of $29.1 million, or 63%, compared to $46.4 million, or 0.96%, of total loans, at December 31, 2012. Loan delinquencies are generally the result of deteriorating economic conditions of the region and the resulting liquidity impact upon the client. The payment performance of delinquent clients can vary from month to month. 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. If the loan is put on nonaccrual status, the loan would generally be considered impaired and an impairment analysis would be performed to determine the

49

amount of impairment, if any. 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. Past due loans may be included with accruing substandard loans.

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. 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. Impaired loans totaled $97.1 million as of March 31, 2013, an increase of $15.6 million, or 19%, compared to $81.5 million as of December 31, 2012. As of March 31, 2013, $42.2 million of the impaired loans had $4.7 million in specific reserve allocations. The remaining $54.9 million of impaired loans did not have specific reserve allocations due to the adequacy of collateral, prior charge-offs taken, or interest collected and applied to principal. As of December 31, 2012, $34.1 million of impaired loans had $3.4 million in specific reserve allocations, and the remaining $47.4 million of impaired loans did not have specific reserve allocations.

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 on collateral dependent loans would result in the impairment amount being charged-off to the allowance for loan losses, and shortfalls on cash flow dependent loans may be carried as specific reserve allocations unless a known loss is determined to have occurred, in which case such known loss is charged-off.

In certain instances, although very infrequent, loans that have become 90 days 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 less than $0.1 million of loans past due 90 days or more and still accruing interest at March 31, 2013 and $3.6 million at December 31, 2012.

The Bank’s general 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 months). For troubled debt restructured loans (“TDRs”), a return to accrual status requires timely payments (for a period of six months) in accordance with restructured terms, along with meeting other criteria.

The Bank may, under certain circumstances, restructure loans as a concession to borrowers who are experiencing financial difficulty. These loans are classified as TDRs and are included in impaired loans. These TDRs typically result from the Company’s loss mitigation activities which, among other things, could include rate reductions, payment extensions, and/ or principal forgiveness. TDRs totaled $61.2 million and $54.5 million at March 31, 2013 and December 31, 2012, respectively. Of the $61.2 million in TDRs at March 31, 2013, $29.9 million were on accrual status. Of the $54.5 million in TDRs at December 31, 2012, $26.7 million were on accrual status.

The Bank continues to evaluate the underlying collateral of each nonaccrual loan and pursue the collection of interest and principal. Where appropriate, the Bank obtains updated appraisals on collateral. Please refer to Part I. Item 1. “Financial Statements and Supplementary Data—Note 6: Loans Receivable” for further information on nonaccruing loans.

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 Company classifies certain loans as “substandard,” “doubtful,” or “loss” based on criteria consistent with guidelines provided by banking regulators. Potential problem loans consist of substandard accruing loans that were less than 90 days past due, but 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 reserves and provision for loan losses.

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The Company has identified approximately $75.4 million in potential problem loans as of March 31, 2013, a decrease of $14.7 million, or 16%, compared to $90.1 million as of December 31, 2012. This decrease was primarily due to a decline in the amount of commercial real estate loans of $15.8 million, or 25%, to $48.2 million as of March 31, 2013 compared to $64.0 million as of December 31, 2012. Numerous factors impact the level of potential problem loans including economic conditions and real estate values. These factors affect our borrowers’ liquidity and, in some cases, our borrowers’ ability to comply with loan covenants such as debt service coverage. 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.

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 continues to obtain newer appraisals, approximately every 12 to 18 months or sooner, if deemed necessary, especially during periods of declining 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.

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 to earnings enhancement opportunities in a changing marketplace.

At March 31, 2013, the Company’s cash and cash equivalents amounted to $54.1 million. The Holding Company’s cash and cash equivalents amounted to $50.2 million at March 31, 2013. In April 2013, the Holding Company issued $50.0 million in Non-Cumulative Perpetual Preferred Stock, Series D (“Series D Preferred stock”) and repurchased its Series B Preferred stock for approximately $69.8 million in cash. Management believes that the Company and the Holding Company 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 March 31, 2013, consolidated cash and cash equivalents and securities available for sale, less securities pledged against current borrowings, amounted to $0.7 billion, or 11% of total assets, compared to $0.9 billion, or 14% of total assets at December 31, 2012.

The Company’s consolidated cash and cash equivalents and securities available for sale, less securities pledged decreased $0.2 billion, or 25%, in the first three months of 2013. This decrease is primarily due to fact that the decrease in deposits was greater than the decrease in loans. 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 $725.8 million as of March 31, 2013 compared to $794.4 million at December 31, 2012. Combined, this liquidity totals $1.4 billion, or 22% of assets and 31% of total deposits as of March 31, 2013 compared to $1.7 billion, or 26% of assets and 34% of total deposits as of December 31, 2012.

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 carefully manages the amount and timing of future loan growth along with its relevant liquidity policies and balance sheet guidelines.

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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 majority-owned affiliates to sell) the remaining noncontrolling interests in these companies at the then fair value generally as determined by the respective agreements. At March 31, 2013, the estimated maximum redemption value for these affiliates related to outstanding put options was $17.4 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, 2012.

The Holding Company’s primary sources of funds are dividends from its affiliates, access to the capital and debt markets, and private equity investments. The Holding Company recognized $1.7 million in net income from discontinued operations during the three months ended March 31, 2013. The majority of this amount related to a revenue sharing agreement with Westfield Capital Management Company, LLC (“Westfield”). Other than the revenue sharing agreement with Westfield, divestitures are not ongoing sources of funds for the Holding Company. 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, 2012 for further details.

The Bank has paid dividends to the Holding Company 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 is currently above current 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. Since 2010, the Company has been a party to an interest rate swap to hedge a portion of the cash flow associated with a junior subordinated debenture which converted from a fixed rate to a floating rate on December 30, 2010. The estimated cash outlay for the remaining nine months of 2013 for the interest payments, including the effect of the cash flow hedge, is approximately $3.6 million based on the debt outstanding as of the date of this filing and estimated LIBOR.

The Company is required to pay cash dividends quarterly on its Series D Preferred stock at 6.95% per annum, issued in April 2013. The estimated cash outlay for the remaining nine months of 2013 for the Series D Preferred stock dividend payments is approximately $2.2 million.

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 pending regulatory changes to capital requirements. In January 2013, the Company increased its quarterly dividend from $0.01 per share to $0.05 per share. Based on the current dividend rate and estimated shares outstanding, the Company estimates the amount to be paid out in the remaining nine months of 2013 for dividends to common shareholders will be approximately $12.0 million. In April 2013, the Company’s repurchased all of its Series B Preferred stock and therefore will not pay additional dividends on these shares.

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. Management believes that the Bank has adequate liquidity to meet its commitments for the foreseeable future.

In addition to the above liquidity, the Bank has access to the Federal Reserve discount window facility, which can provide short-term liquidity as “lender of last resort,” brokered certificates of deposit, 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.

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From time to time, the Bank purchases federal funds from the FHLB and other banking institutions to supplement its liquidity position. The Bank had unused federal fund lines of credit totaling $186.0 million with correspondent institutions to provide immediate access to overnight borrowings. At March 31, 2013, the Bank had outstanding borrowings of $50.0 million under these federal fund lines. At December 31, 2012, Bank had unused federal fund lines of credit totaling $236.0 million with correspondent institutions to provide immediate access to overnight borrowings.

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

Capital Resources

Total shareholders’ equity at March 31, 2013 was $617.1 million, compared to $603.1 million at December 31, 2012, an increase of $14.0 million, or 2%. The increase in shareholders’ equity was primarily the result of net income and stock compensation, partially offset by dividends paid.

As a bank holding company, the Company is subject to various regulatory capital requirements administered by federal agencies. Failure to meet minimum capital requirements can result in certain mandatory, and possibly additional discretionary actions by regulators that, if undertaken, could have a material effect on the Company’s financial statements. For example, under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank, which is a wholly-owned subsidiary of the Company, must meet specific capital guidelines that involve quantitative measures of the Bank’s assets and certain off-balance sheet items as calculated under regulatory guidelines. The Bank’s capital and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Similarly, the Company is also subject to capital requirements administered by the Federal Reserve with respect to certain non-banking activities, including adjustments in connection with off-balance sheet items.

To be categorized as “well capitalized,” the Company and the Bank must maintain minimum total risk-based, Tier I risk-based, and Tier I leverage ratios as set forth in the regulatory capital and capital ratios table, below. In addition, the Company and the Bank cannot be subject to any written agreement, order or capital directive or prompt corrective action to be considered “well capitalized.” Both the Company and the Bank maintain capital at levels that would be considered “well capitalized” as of March 31, 2013 under the applicable regulations.

The following table presents the Company’s and the Bank’s amount of regulatory capital and related ratios as of March 31, 2013 and December 31, 2012. Also presented are the capital guidelines established by the Federal Reserve, which pertain to the Company, and by the FDIC, which pertains to the Bank. To be categorized as “adequately capitalized” or “well capitalized,” the Company and the Bank must be in compliance with these ratios as long as the Company and/or the Bank are not subject to any written agreement, order, capital directive, or prompt corrective action directive. The Federal Reserve, the FDIC, and the Massachusetts Commissioner of Banks may impose higher capital ratios than those listed below based on the results of regulatory exams.

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	Actual				For capital adequacy purposes (at least)				To be well capitalized under prompt corrective action provisions (at least)
	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(In thousands)
As of March 31, 2013
Total risk-based capital
Company	$	684,755	14.91	%	$	367,366	8.00	%	$	459,207	10.00	%
Boston Private Bank	606,023		13.29		364,841		8.00		456,052		10.00
Tier I risk-based capital
Company	626,948		13.65		183,683		4.00		275,524		6.00
Boston Private Bank	548,683		12.03		182,421		4.00		273,631		6.00
Tier I leverage capital
Company	626,948		10.14		247,370		4.00		309,212		5.00
Boston Private Bank	548,683		8.98		244,324		4.00		305,405		5.00
As of December 31, 2012
Total risk-based capital
Company	$	676,206	14.61	%	$	370,223	8.00	%	$	462,779	10.00	%
Boston Private Bank	594,422		12.94		367,522		8.00		459,402		10.00
Tier I risk-based capital
Company	617,965		13.35		185,112		4.00		277,667		6.00
Boston Private Bank	536,649		11.68		183,761		4.00		275,641		6.00
Tier I leverage capital
Company	617,965		9.94		248,692		4.00		310,865		5.00
Boston Private Bank	536,649		8.73		245,755		4.00		307,194		5.00

Bank regulatory authorities restrict the Bank from lending or advancing funds to, or investing in the securities of, the Company. Further, these authorities restrict the amounts available for the payment of dividends by the Bank to the Company.

As of March 31, 2013, the Company has sponsored the creation of, or assumed sponsorship of, five 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, or assumed 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 March 31, 2013, all $126.7 million of the net balance of these trust preferred securities qualified as Tier I capital. As of December 31, 2012, all $136.5 million of the net balance of these trust preferred securities qualified as Tier I capital.

Results of operations for the three months ended March 31, 2013 versus March 31, 2012

Net Income. The Company recorded net income from continuing operations for the three months ended March 31, 2013 of $12.4 million, compared to $8.7 million for the same period in 2012. Net income attributable to the Company, which includes income from both continuing and discontinued operations, for the three months ended March 31, 2013 was $13.2 million, compared to $9.5 million, for the same period in 2012.

The Company recognized diluted earnings per share from continuing operations for the three months ended March 31, 2013 of $0.13 per share, compared to $0.09 per share, for the same period in 2012. Diluted earnings per share attributable to common shareholders, which includes both continuing and discontinued operations, for the three months ended March 31, 2013 was $0.15 per share, compared to $0.11 per share, for the same period in 2012. Net income from continuing operations in both 2013 and 2012 was 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.

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The following table presents selected financial highlights:

	Three months ended March 31,				% Change
	2013		2012
	(In Thousands)
Net interest income	$	44,276	$	44,768	(1	)%
Fees and other income	30,596		27,454		11	%
Total revenue	74,872		72,222		4	%
Provision/ (credit) for loan losses	—		4,000		nm
Operating expense	56,564		55,627		2	%
Income tax expense	5,897		3,851		53	%
Net income from continuing operations	12,411		8,744		42	%
Net income from discontinued operations	1,722		1,554		11	%
Less: Net income attributable to noncontrolling interests	930		793		17	%
Net income attributable to the Company	$	13,203	$	9,505	39	%

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 fully taxable-equivalent (“FTE”) basis, expressed as a percentage of average interest-earning assets. The average rate earned on earning assets is the amount of annualized taxable equivalent interest income expressed as a percentage of average 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 that are graded substandard but are still accruing interest income of $75.4 million at March 31, 2013 could be placed on nonaccrual status if their credit quality declines further.

Net interest income for the three months ended March 31, 2013 was $44.3 million, a decrease of $0.5 million, or 1%, compared to the same period in 2012. The decrease for the three months is due to lower average yields on loans and investments, partially offset by an increase in volume of the loan portfolio, and lower average rates paid on the Company’s deposits and borrowings. The NIM was 3.13% and 3.27% for the three months ended March 31, 2013 and 2012, respectively.

The following table presents the composition of the Company’s NIM on a FTE basis for the three months ended March 31, 2013 and 2012; however, the discussion following these tables reflects non-FTE data.

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	Average Balance				Interest Income/Expense				Average Yield/Rate
(In Thousands)	As of and for the three months ended March 31,
AVERAGE BALANCE SHEET:	2013		2012		2013		2012		2013		2012
AVERAGE ASSETS
Interest-Earning Assets:
Cash and Investments (1):
Taxable investment securities	$	198,833	$	376,206	$	514	$	1,256	1.03	%	1.34	%
Non-taxable investment securities (2)	205,255		194,410		1,291		1,323		2.52	%	2.72	%
Mortgage-backed securities	317,686		251,989		1,402		1,603		1.76	%	2.54	%
Federal funds sold and other	168,004		130,771		176		149		0.43	%	0.46	%
Total Cash and Investments	889,778		953,376		3,383		4,331		1.52	%	1.82	%
Loans: (3)
Commercial and Construction (2)	2,805,685		2,591,377		31,990		32,693		4.62	%	5.07	%
Residential	2,003,845		1,857,838		16,928		17,826		3.38	%	3.84	%
Home Equity and Other Consumer	268,156		320,160		1,987		2,760		3.01	%	3.45	%
Total Loans	5,077,686		4,769,375		50,905		53,279		4.05	%	4.48	%
Total Earning Assets	5,967,464		5,722,751		54,288		57,610		3.67	%	4.04	%
Less: Allowance for Loan Losses	84,330		97,471
Cash and due from Banks (non-interest bearing)	41,897		112,844
Other Assets (4)	391,909		427,083
TOTAL AVERAGE ASSETS	$	6,316,940	$	6,165,207
AVERAGE LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS, AND SHAREHOLDERS’ EQUITY
Interest-Bearing Liabilities:
Deposits (5):
Savings and NOW	$	576,814	$	533,075	$	132	$	331	0.09	%	0.25	%
Money Market	2,387,363		1,983,558		2,086		2,136		0.35	%	0.43	%
Certificates of Deposits	678,788		898,458		1,568		2,436		0.94	%	1.09	%
Total Deposits	3,642,965		3,415,091		3,786		4,903		0.42	%	0.58	%
Junior Subordinated Debentures	137,016		180,817		1,154		1,752		3.37	%	3.83	%
FHLB Borrowings and Other	537,468		709,611		3,065		4,379		2.28	%	2.44	%
Total Interest-Bearing Liabilities	4,317,449		4,305,519		8,005		11,034		0.75	%	1.02	%
Noninterest Bearing Demand Deposits	1,264,803		1,167,623
Payables and Other Liabilities (4)	107,645		106,536
Total Average Liabilities	5,689,897		5,579,678
Redeemable Noncontrolling Interests	17,184		21,701
Average Shareholders’ Equity	609,859		563,828
TOTAL AVERAGE LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS, AND SHAREHOLDERS’ EQUITY	$	6,316,940	$	6,165,207
Net Interest Income - on a FTE Basis					$	46,283	$	46,576
FTE Adjustment (2)					2,007		1,808
Net Interest Income (GAAP Basis)					$	44,276	$	44,768
Interest Rate Spread									2.92	%	3.02	%
Net Interest Margin									3.13	%	3.27	%

________________________

(1) Investments classified as available for sale 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.

(4) Includes assets and liabilities of discontinued operations, if any.

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(5) Includes deposits held for sale.

Interest and Dividend Income. Interest and dividend income for the three months ended March 31, 2013was $52.3 million, a decrease of $3.5 million, or 6%, compared to the same period in 2012. The decrease was primarily due to lower yields on loans and investments, partially offset by increased average loan volume, and a shift in the mix of interest-bearing assets from cash and investments into the loan portfolio.

The Bank generally has interest income that is either recovered or reversed related to nonaccruing loans each quarter. Based on the net amount recovered 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 loans (including construction loans), on a non-FTE basis, for the three months ended March 31, 2013was $30.4 million, a decrease of $0.9 million, or 3%, compared to the same period in 2012 as a result of a 45 basis point decrease in the average yield, partially offset by an 8% increase in the average balance. The increase in the average balance is related to the organic growth of the commercial loan portfolio at the Bank, as discussed above in Part I. Item 2. “Management’s Discussion and Analysis - Loan Portfolio and Credit Quality.” The decrease in the average yield is the result of market conditions leading to lower rates due to competition for higher quality loans.

Interest income on residential mortgage loans for the three months ended March 31, 2013 was $16.9 million, a decrease of $0.9 million, or 5%, compared to the same period in 2012 as a result of a 46 basis point decrease in the average yield, partially offset by an 8% increase in the average balance. The decrease in the average yield was primarily due to adjustable rate mortgage (“ARM”) loans repricing to lower rates, clients refinancing into lower rates and new loan originations at historically low rates. The decline in U.S. Treasury yields, the index to which the ARMs are typically linked, has decreased the yields on these mortgage loans. The increase in the average balances was due to the organic growth of the residential loan portfolio at the Bank.

Interest income on home equity and other consumer loans for the three months ended March 31, 2013 was $2.0 million, a decrease of $0.8 million, or 28%, compared to the same period in 2012, as a result of a 44 basis point decrease in the average yield and a 16% decrease in the average balance. The decrease in average yield is primarily due to lower market rates on consumer loans. The decrease in average balance reflects lower client demand.

Investment income, on a non-FTE basis, for the three months ended March 31, 2013 was $2.9 million, a decrease of $0.9 million, or 24%, compared to the same period in 2012, as a result of a 30 basis point decrease in the average yield and a 7% decrease in the average balance. The decrease in the average balance is primarily due to timing and volume of deposit balances as compared to the level of loans outstanding. Investment decisions are made based on anticipated liquidity, loan demand, and asset-liability management considerations.

Interest expense. Interest expense on deposits and borrowings for the three months ended March 31, 2013 was $8.0 million, a decrease of $3.0 million, or 27%, compared to the same period in 2012.

Interest expense on deposits for the three months ended March 31, 2013 was $3.8 million, a decrease of $1.1 million, or 23%, compared to the same period in 2012, as a result of a 16 basis point decrease in the average rate paid, partially offset by a 7% increase in the average balance. The decrease in the average rates paid was primarily due to the Bank’s ability to lower interest rates on all account types due to the low interest rate environment.

Interest paid on borrowings for the three months ended March 31, 2013 was $4.2 million, a decrease of $1.9 million, or 31%, compared to the same period in 2012, as a result of a 25 basis point decrease in the average rate paid and a 24% decrease in the average balance. The decrease in the average rate paid is primarily due to the higher-rate FHLB borrowings maturing and being replaced at lower rates, and the repurchase of a portion of the Company’s junior subordinated debt in 2012 and the first quarter of 2013.

Provision/ (credit) for loan losses. The provision/ (credit) for loan losses for the three months ended March 31, 2013 was zero, a decrease of $4.0 million compared to the same period in 2012. No provision was booked in the first quarter of 2013 due primarily to the decline in adversely-classified loans, a decrease in the loan portfolio, and the change in the mix of the loan portfolio.

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 factors used by management to determine the level of the allowance for loan losses include the trends in problem loans, economic and

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business conditions, strength of management, real estate collateral values, and underwriting standards. For further details, see Part I. Item 2. “Management’s Discussion and Analysis - Loan Portfolio and Credit Quality” above.

Fees and other income. Fees and other income for the three months ended March 31, 2013 was $30.6 million, an increase of $3.1 million, or 11%, compared to the same period in 2012. The increase is primarily due to higher investment management and trust fees, wealth advisory fees, and higher gains on sales of loans, partially offset by lower gains recognized from the repurchase of debt and lower other income.

Investment management and trust fees for the three months ended March 31, 2013 was $16.9 million, an increase of $1.6 million, or 11%, compared to the same period in 2012. AUM at the Bank and Investment Managers increased $1.7 billion, or 15%, in the past twelve months to $13.5 billion at March 31, 2013. $1.4 billion of the increase is due to market appreciation, and the remaining $0.3 billion increase is due to positive net flows. Investment management and trust fees from the Bank and Investment Managers are typically calculated based on a percentage of AUM, and approximately 45% of the first quarter 2013 investment management and trust fee revenues were earned based upon beginning-of-period (December 31, 2012) AUM for the quarter. Changes in revenue generally lag behind changes in AUM, and accordingly, we expect higher levels of investment management and trust revenue in the second quarter of 2013.

Wealth advisory fee income for the three months ended March 31, 2013 was $10.1 million, an increase of $0.8 million, or 9%, compared to the same period in 2012. AUM as of March 31, 2013 managed by the Wealth Advisors was $8.5 billion, an increase of $0.9 billion, or 12%, compared to March 31, 2012.

Gain on sale of loans, net, for the three months ended March 31, 2013 was $1.2 million, an increase of $0.8 million, or over 100%, compared to the same period in 2012. In the first quarter of 2013, the Company transferred $9.1 million in loans from its loan portfolio to loans held for sale. These loans were subsequently sold for a gain of $0.2 million. The remaining increase related to the sale of loans originated for sale.

Gain on repurchase of debt for the three months ended March 31, 2013 was $0.6 million. During the first three months of 2013, the Company repurchased $9.8 million of its junior subordinated debt. The Company used available cash on hand to repurchase the securities.

Other Income for the three months ended March 31, 2013 was $0.1 million, a decrease of $0.3 million, or 83%, compared to the same period in 2012. The decrease is primarily due to lower gains on the Company’s rabbi trust investments, lower partnership earnings, and lower earnings from the Company’s other cost method investments.

Operating Expense. Operating expense for the three months ended March 31, 2013 was $56.6 million, an increase of $0.9 million, or 2%, compared to the same period in 2012. The increase for the three months ended March 31, 2013 is primarily due to increases in salaries and benefits, occupancy and equipment, contract services, and FDIC insurance expenses, partially offset by decreased professional fees and other expenses.

Salaries and employee benefits expense, the largest component of operating expense, for the three months ended March 31, 2013 was $37.4 million, an increase of $0.5 million, or 1%, compared to the same period in 2012. The increase is primarily due to higher commission-based compensation and post-employment benefits, partially offset by efficiencies resulting from the Bank merger and management restructuring.

Occupancy and equipment expense for the three months ended March 31, 2013 was $7.5 million, an increase of $0.2 million, or 3%, compared to the same period in 2012. The increase is primarily related to new offices opened by the Bank in the past year, as well as increased technology expense.

Contract services and data processing expense for the three months ended March 31, 2013 was $1.6 million, an increase of $0.4 million, or 32%, compared to the same period in 2012. The increase is primarily related to higher custody fees and system expenses, which are based on AUM levels.

FDIC insurance expense for the three months ended March 31, 2013 was $1.0 million, an increase of $0.2 million, or 22%, compared to the same period in 2012. The increase is primarily due to the increase in average assets from 2012 to 2013.

Professional services for the three months ended March 31, 2013 was $2.7 million, a decrease of $0.3 million, or 9%, compared to the same period in 2012. The decrease is primarily due to lower consulting and legal expenses for loan workout matters, as well as decreases in director and audit fees as a result of the Bank merger, partially offset by increased expenses related to legal services for general corporate matters.

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Income Tax Expense/ (Benefit). Income tax expense/ (benefit) for continuing operations for the three months endedMarch 31, 2013 was an expense of $5.9 million. The effective tax rate for continuing operations for the three months ended March 31, 2013 was 32.2%, compared to an effective tax rate of 30.6% for the same period in 2012. See Part I. Item 1. “Notes to Unaudited Consolidated Financial Statements - Note 9: Income Taxes” for further detail.

Recent Accounting Pronouncements

In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The amendments to this update require entities to present information about reclassifications out of accumulated other comprehensive income in a single note or on the face of the financial statements. The new guidance was effective for fiscal years, and interim periods within those years, beginning after December 15, 2012, with early adoption permitted. The Company did not early adopt. The adoption of this ASU did not have a material effect on the Company’s consolidated financial statements.

In July 2012, the FASB issued updated guidance, ASU 2012-02, Intangibles - Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment. The amendments in this update regarding the impairment testing applicable to indefinite-lived intangible assets, is similar to the impairment guidance issued in ASU 2011-08, Intangibles - Goodwill and Other (Topic 350): Testing Goodwill for Impairment, applicable to goodwill. Under the updated guidance, an entity may assess qualitative factors (such as changes in management, key personnel, strategy, key technology or customers) that may impact the fair value of the indefinite-lived intangible asset and lead to the determination that it is more likely than not that the fair value of the asset is less than its carrying value. If an entity determines that it is more likely than not that the fair value of the intangible asset is less than its carrying value, an impairment test must be performed. The impairment test requires an entity to calculate the estimated fair value of the indefinite-lived intangible asset. If the carrying value of the indefinite-lived intangible asset exceeds its estimated fair value, an impairment loss is recognized in an amount equal to the excess. The updated guidance is effective for annual and interim indefinite-lived intangible asset impairment tests performed for fiscal years beginning after September 15, 2012 and early adoption is permitted provided the Company has not yet performed its 2012 impairment test or issued its financial statements. The Company did not early adopt. The adoption of this ASU did not have a material effect on the Company’s consolidated financial statements.

In December 2011, the FASB issued new guidance, ASU 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities and in January 2013, the FASB issued, ASU 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. ASU 2011-11 requires entities to disclose both gross and net information about both instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject to an agreement similar to a master netting arrangement. ASU 2013-01 limits the scope of disclosures to derivatives, repurchase agreements and securities lending arrangements. The new guidance is effective for fiscal years, and interim periods within those years, beginning after January 1, 2013 and requires a retrospective application for all comparative periods which are presented. The adoption of these ASUs did not have a material effect on the Company’s consolidated financial statements.

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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, 2012.

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 March 31, 2013 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 is recorded, processed, summarized and reporting 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 March 31, 2013, 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, 2012 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

None.

Item 3.     Defaults Upon Senior Securities

None.

Item 4.     Mine Safety Disclosures

Not applicable.

Item 5.     Other Information

None.

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Item 6.     Exhibits

(a) Exhibits

Exhibit No.	Description	Incorporated by Reference			Filed or Furnished with this 10-Q
		Form	SEC Filing Date	Exhibit Number
3.1	Articles of Amendment of the Company	8-K	4/22/2013	3.1	Filed
3.2	Articles of Amendment of the Company	8-A12B	4/24/2013	3.1	Filed
4.1	Master Deposit Agreement, dated April 24, 2013, by and among the Registrant, Computershare Trust Company, N.A., and Computershare Inc., collectively, as depositary, and the holders from time to time of the depositary receipts described therein	8-A12B	4/24/2013	4.1	Filed
4.2	Form of Certificate Representing Series D Preferred Stock	8-A12B	4/24/2013	4.2	Filed
10.1	Form of Restricted Stock Award Agreement Under the Boston Private Financial Holdings, Inc. 2009 Stock Option and Incentive Plan (including a Non-Solicitation and Confidentiality Agreement for Non-California Residents and a Non-Solicitation and Confidentiality Agreement for California Residents, as applicable)				Filed
10.2	Form of Restricted Stock Award Agreement Under the Boston Private Financial Holdings, Inc. 2009 Stock Option and Incentive Plan (for employees with existing Employment Agreements)				Filed
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				Furnished
101.SCH	XBRL Taxonomy Extension Schema Document				Furnished
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document				Furnished
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document				Furnished
101.LAB	XBRL Taxonomy Extension Label Linkbase Document				Furnished
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document				Furnished

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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
May 8, 2013	Clayton G. Deutsch
	President and Chief Executive Officer
	/s/ DAVID J. KAYE
May 8, 2013	David J. Kaye
	Executive Vice President, Treasurer, and Chief Financial Officer

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EX-10.1

Exhibit 10.1

FORM OF

RESTRICTED STOCK AWARD AGREEMENT

UNDER THE BOSTON PRIVATE FINANCIAL HOLDINGS, INC.

2009 STOCK OPTION AND INCENTIVE PLAN

Name of Grantee:    

No. of Shares:

Grant Date:

Pursuant to the Boston Private Financial Holdings, Inc. 2009 Stock Option and Incentive Plan (the “Plan”) as amended through the date hereof, Boston Private Financial Holdings, Inc. (the “Company”) hereby grants a Restricted Stock Award (an “Award”) to the Grantee named above. Upon acceptance of this Award, the Grantee shall receive the number of shares of Common Stock, par value $1.00 per share (the “Stock”) of the Company specified above, subject to the restrictions and conditions set forth herein and in the Plan. The Company acknowledges the receipt from the Grantee of consideration with respect to the par value of the Stock in the form of cash, past or future services rendered to the Company by the Grantee or such other form of consideration as is acceptable to the Administrator.

1.Acceptance of Award. The Grantee shall have no rights with respect to this Award unless he or she shall have accepted this Award electronically through the Company’s Stock Plan Administration System. The shares of Restricted Stock awarded hereunder shall be issued electronically and allocated to the Grantee’s Stock Plan Administration System account and the Grantee’s name shall be entered as the stockholder of record on the books of the Company. Thereupon, the Grantee shall have all the rights of a stockholder with respect to such shares, including voting and dividend rights, subject, however, to the restrictions and conditions specified in Paragraph 2 below. The shares of Restricted Stock so accepted shall be held in this account as granted by the Company through the vesting dates noted in Paragraph 3, below.

By accepting this Award, the Grantee confirms the Grantee’s agreement to all of the terms and conditions of any agreement between the Grantee and the Company or any of its Subsidiaries that addresses post-employment restrictions on solicitation of employees and customers or clients. If the Grantee is not a party to any such agreement, by accepting this Award, the Grantee agrees to the terms and conditions of the Non-Solicitation and Confidentiality Agreement attached as Exhibit I, hereto (the “Non-Solicitation Agreement”). The Non-Solicitation Agreement addresses confidentiality of Company information, post-employment restrictions on solicitation of employees and customers or clients and other similar matters and should be reviewed carefully by the Grantee. If this Award is not so accepted within 30 days of the Grant Date, the Grantee shall forfeit the Award in its entirety (regardless of whether vested or unvested).

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2.Restrictions and Conditions.

(a)Any book entries for the shares of Restricted Stock granted herein shall bear an appropriate legend, as determined by the Administrator in its sole discretion, to the effect that such shares are subject to restrictions as set forth herein and in the Plan.

(b)Shares of Restricted Stock granted herein may not be sold, assigned, transferred, pledged or otherwise encumbered or disposed of by the Grantee prior to vesting.

(c)Except as otherwise provided below, if the Grantee’s employment with the Company and its Subsidiaries is voluntarily or involuntarily terminated for any reason prior to vesting of shares of Restricted Stock granted herein, all shares of Restricted Stock shall immediately and automatically be forfeited and returned to the Company.

3.Vesting of Restricted Stock. The restrictions and conditions in Paragraph 2 of this Agreement shall lapse on the Vesting Date or Dates specified in the following schedule so long as the Grantee remains an employee of the Company or a Subsidiary on such Dates. If a series of Vesting Dates is specified, then the restrictions and conditions in Paragraph 2 shall lapse only with respect to the number of shares of Restricted Stock specified as vested on such date.

Number of Shares Vested	Vesting Date
100%	May [__], 20[__]

Subsequent to such Vesting Date or Dates, the shares of Stock on which all restrictions and conditions have lapsed shall no longer be deemed Restricted Stock. The Administrator may at any time accelerate the vesting schedule specified in this Paragraph 3. Notwithstanding the foregoing, (i) if the Grantee’s employment with the Company and its Subsidiaries is terminated due to the Grantee’s death or disability (as determined by the Administrator) prior to the vesting of shares of Restricted Stock granted herein, all restrictions shall lapse and such shares shall automatically become fully vested; (ii) if the Grantee’s employment with the Company and its Subsidiaries is terminated by the Company or its Subsidiary without Cause (as defined below) the Grantee shall be immediately vested and all restrictions shall lapse with respect to a pro-rated portion of this Award, calculated based on the number of days during the applicable vesting period(s) from the Grant Date through the date of termination; (iii) notwithstanding Sections 3(c) or 19 of the Plan, and notwithstanding the provisions of any employment or other agreement between the Grantee and the Company or any Subsidiary that is in effect as of the date hereof, in the event that (x) a Change of Control (as defined in Section 19 of the Plan) or Sale Event (as defined in Section 3(c) of the Plan) occurs under which this Award is assumed or continued by the successor entity in such Change of Control or Sale Event or substituted with a new award of such successor (in accordance with Section 3(c) of the Plan), and (y) the Grantee’s employment by the Company or a Subsidiary (or such successor in the Change of Control or Sale Event) is terminated without Cause (as defined below) within 24 months following the effective date of such Change of Control or Sale Event, then, any restrictions and conditions on shares of Stock subject to this Award shall lapse and this Award shall automatically become fully vested as of the date of such termination; and (iv) in the event of a Change of Control or Sale Event under which this Award is not assumed or continued by the successor entity in such Change of Control or Sale Event or substituted with a new award of such successor, any restrictions and conditions on shares of Stock subject to this Award shall lapse and this Award shall automatically become fully vested, subject to the provisions of the Plan, as of the effective time of such Change of Control or Sale Event. The Administrator’s determination of the reason for termination of the Grantee’s employment shall be conclusive and binding on the Grantee and his or her representatives or legatees.

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For purposes hereof, “Cause” shall mean, unless otherwise provided in an employment or other agreement between the Company and the Grantee, a determination by the Administrator that the Grantee shall be dismissed as a result of (i) any material breach by the Grantee of any agreement between the Grantee and the Company; (ii) the conviction of, indictment for or plea of nolo contendere by the Grantee to a felony or a crime involving moral turpitude; or (iii) any material misconduct or willful and deliberate non-performance (other than by reason of disability) by the Grantee of the Grantee’s duties to the Company.

4.Dividends. Dividends on Shares of Restricted Stock shall be accumulated and shall be subject to restrictions, conditions and risk of forfeiture to the same extent as the Shares of Restricted Stock granted hereunder. Such accumulated dividends shall be distributed and paid to the Grantee at such time and only to the extent that the Shares subject to this Award shall vest in accordance with Section 3.

5.Incorporation of Plan. Notwithstanding anything herein to the contrary, this Agreement shall be subject to and governed by all the terms and conditions of the Plan, including the powers of the Administrator set forth in Section 2(b) of the Plan. Capitalized terms in this Agreement shall have the meaning specified in the Plan, unless a different meaning is specified herein.

6.Transferability. This Agreement is personal to the Grantee, is non-assignable and is not transferable in any manner, by operation of law or otherwise, other than by will or the laws of descent and distribution.

7.Tax Withholding. The Grantee shall, not later than the date as of which the receipt of this Award becomes a taxable event for Federal income tax purposes, pay to the Company or make arrangements satisfactory to the Administrator for payment of any Federal, state, and local taxes required by law to be withheld on account of such taxable event. Except in the case where an election is made pursuant to Paragraph 8 below, the Grantee may elect to have the required minimum tax withholding obligation satisfied, in whole or in part, by authorizing the Company to withhold from shares of Stock to be issued or released by the transfer agent a number of shares of Stock with an aggregate Fair Market Value that would satisfy the withholding amount due.

8.Election Under Section 83(b). The Grantee and the Company hereby agree that the Grantee may, within 30 days following the acceptance of this Award as provided in Paragraph 1 hereof, file with the Internal Revenue Service and the Company an election under Section 83(b) of the Internal Revenue Code. In the event the Grantee makes such an election, he or she agrees to provide a copy of the election to the Company. The Grantee acknowledges that he or she is responsible for obtaining the advice of his or her tax advisors with regard to the Section 83(b) election and that he or she is relying solely on such advisors and not on any statements or representations of the Company or any of its agents with regard to such election.

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9.No Obligation to Continue Employment. Neither the Company nor any Subsidiary is obligated by or as a result of the Plan or this Agreement to continue the Grantee in employment and neither the Plan nor this Agreement shall interfere in any way with the right of the Company or any Subsidiary to terminate the employment of the Grantee at any time.

10.Clawback. If the Company or its Subsidiaries terminate the Grantee’s service relationship due to the Grantee’s gross negligence or willful misconduct (whether or not such actions also constitute Cause hereunder) which conduct, directly or indirectly results in the Company preparing an accounting restatement, and/or, if the Grantee breaches any provision of the Non-Solicitation Agreement (or, if applicable, such other agreement referenced in Paragraph 1, above) any shares of Stock granted hereunder, whether or not vested, (and any gains thereon) shall be subject to forfeiture, recovery and “clawback.”

11.Notices. Notices hereunder shall be mailed or delivered to the Company at its principal place of business and shall be mailed or delivered to the Grantee at the address on file with the Company or, in either case, at such other address as one party may subsequently furnish to the other party in writing.

	BOSTON PRIVATE FINANCIAL HOLDINGS, INC.
By:
	Name:	Clayton G. Deutsch
	Title:	CEO & President

The foregoing Agreement is hereby accepted and the terms and conditions thereof hereby agreed to by the undersigned.

Dated:
	Grantee’s Signature
	Grantee’s name and address

4

EXHIBIT I (a): NON-SOLICITATION AND

CONFIDENTIALITY AGREEMENT FOR NON-CALIFORNIA RESIDENTS

I acknowledge that I enter into this Non-Solicitation and Confidentiality Agreement (the “Agreement”) in connection with an award of restricted stock or a grant of a stock option (together, an “Award”) that is made on or about the date of the proposal of this Agreement, pursuant to the Boston Private Financial Holdings, Inc. 2009 Stock Option and Incentive Plan or any subsequent stock option and/or restricted stock plan of Boston Private Financial Holdings, Inc. (together, the “Plan”) and that I shall forfeit the Award (whether vested or unvested) if I do not execute this Non-Solicitation and Confidentiality Agreement (the “Agreement”) within 30 days of the grant date of the Award.

For purposes of this Agreement, the “Company” refers to Boston Private Financial Holdings, Inc. (“BPFH”) and any and all of its wholly or partially owned subsidiaries.

In consideration for my eligibility for any Award, I hereby agree as follows:

1.Confidential Information. During my employment with the Company and at all times thereafter, I shall keep secret and retain in strictest confidence, and shall not disclose or use, other than in the proper performance of my responsibilities for the Company, any Confidential Information. “Confidential Information” means any information, whether or not in writing, concerning the Company’s business or activities that the Company has not released to the general public. I acknowledge that all Confidential Information is the property of the Company. I understand that the term “Confidential Information” includes, but is not limited to financial statements, business plans, document templates, term sheets, policies and procedures, proprietary training materials, personnel, board materials and minutes, operations, customer and client lists and identities, potential customers and clients, vendor lists and agreements, employees, servicing methods, strategies and strategic planning materials, analyses, profit margins and other proprietary information in connection with the Company; provided, however, that Confidential Information shall not include any information which is generally known to the public or becomes known in the industry through no wrongful act on my part. Confidential Information also includes information received in confidence by the Company from its customers, clients or other third parties.

2.Return of Confidential Information and Other Property. I shall deliver to the Company all copies of Confidential Information and other Company property (which includes but is not limited to any documents, notes or other work product connected with or derived from my services to or affiliation with the Company, whether in electronic or paper form) in my possession or control upon the earlier of a request by the Company or termination of my employment.

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3.Non-Solicitation/Non-Accept.

(a)During my employment with the Company, and for the period ending on the first anniversary of the effective date of my termination of employment with the Company, I shall not directly or indirectly:

(i)solicit or accept for employment with another employer or employ any person then, or within the prior six (6) months, employed by the Company, or request, influence or advise any person who at the time of such communication is employed by the Company to leave such employment; or

(ii)influence or advise any business that is or may be competitive with the business of the Company to employ any person who is employed by the Company; or

(iii)solicit or accept any customer or client of the Company to do business with any person or entity other than the Company or request, induce or advise any customer or client of the Company to withdraw, curtail, diminish or cease his, her or its business with the Company.

(iv)For purposes of Section 3(a), I understand and acknowledge the following for purposes of this Agreement:

(v)A business is or may be “competitive” with the Company if such business is engaged in banking, investment management, financial planning, trust administration or other related financial services;

(vi)to “employ” means to perform services as a common law employer or as an independent contractor for the Company or another person or entity;

(vii)if I advise others concerning the process of encouraging a person to become employed or a customer to do business, I will be considered to have solicited such person or customer regardless of whether I directly engage in solicitation of the person;

(viii)I shall be considered to “accept for employment” or “employ” any person who becomes employed by another employer if:

(A)I advise any bank or other business with which I am affiliated to consider such person for employment,

(B)I participate in any way in the consideration of any such person for employment, or

(C)such person becomes employed in a position in which I supervise such person;

(ix)I shall be considered to “accept” a customer or client if I perform services for such customer or client;

(x)a “customer or client of the Company” means any person or entity who or which did business with the Company during my employment with the Company; provided that, if my employment with the Company is limited exclusively to Boston Private Bank & Trust Company and its predecessors (the “Bank”), a “customer or client of the Company” shall be limited to any person or entity who or which did business with the Bank during my employment with the Bank. for purposes of the post-employment restrictions in this Section 3.

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(b)I hereby acknowledge the necessity of the protection provided to the Company under this Agreement. I have carefully considered the nature and scope of such protection. The Company and I hereby agree that the unique nature of the business of the Company and the nature of my services for the Company require the protection specified in this Agreement. The consideration described in this Agreement is sufficient and adequate to compensate me for agreeing to the restrictions contained herein. I acknowledge that I can continue to actively pursue my career and earn sufficient compensation without breaching any of the foregoing restrictions. The period of the post-employment restrictions in this Agreement is expressly represented and agreed to be fair, reasonable and necessary.

4.Other Obligations. I represent and warrant to the Company that I am not under any contract, agreement or restrictive covenant, and have not previously executed any documents whatsoever with any other person, firm, association, or corporation, that will, in any manner, prevent me from performing any of the job duties and responsibilities that may be assigned to me from time to time by the Company. I also represent and warrant that I will not bring and have not brought with me to the Company and that I will not use in the course and scope of my employment with the Company any confidential, proprietary and/or trade secret materials, documents or information that I obtained from a former employer or other individual or entity, without the express written authorization of the pertinent former employer or other individual or entity. I further represent and warrant that, during my employment with the Company, I will not breach any obligation or duty to maintain confidential and not to disclose or use that I may owe to any former employer or other individual or entity, and I agree to fulfill and comply with any and all such obligations and duties during my employment by the Company.

5.Notice to Future Employers and of Future Employment.

(a)I agree that during my employment with the Company and for the period of one (1) year following the termination of my employment with the Company for any reason, I will inform each prospective new employer I may have, prior to accepting employment, of the existence of this Agreement, and I shall provide each prospective employer with a copy of this Agreement.

(b)I also agree that during my employment with the Company and for the period of one (1) year following the termination of my employment with the Company for any reason, I shall notify the Company in writing of any subsequent engagement, occupation or employment, whether as owner, employee, officer, director, agent, consultant, independent contractor or the like, and my duties and responsibilities with respect to any such position.

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6.Enforcement and Remedies. I hereby acknowledge that upon my breach of any of the covenants contained in this Agreement, the Company will suffer irreparable harm for which the remedy at law will be inadequate, and that an injunction may be entered against me by any court having jurisdiction, restraining me from breaching any of the provisions of this Agreement or continuing the breach of any such provisions, without the necessity of posting a bond. Resort to such equitable relief shall not be construed to be a waiver by the Company of any other rights or remedies that the Company may have to recover damages or other relief. In addition, if the Company prevails in an action to enforce this Agreement, I shall compensate the Company for its reasonable attorneys’ fees and related expenses incurred in enforcing this Agreement.

7.At-Will Employment. It is my understanding that the Company or I may terminate my employment at any time, with or without cause; provided that if I have entered into or in the future enter into a separate written and fully executed employment agreement that expressly provides for employment on other than an at-will basis, my employment status pursuant to such agreement shall supersede the foregoing acknowledgment of at-will employment.

8.Amendment or Modification. This Agreement may not be changed or amended except in writing signed by myself and the Company.

9.Severability. All provisions, terms, conditions, paragraphs, agreements and covenants (“Provisions”) contained in this Agreement are severable and, in the event any one of them shall be held to be invalid, this Agreement shall be interpreted as if such Provision was not contained herein, and such determination shall not otherwise affect the validity of any other Provision.

10.Survival and Assignment by the Company. The Company may assign the rights given to it in this Agreement, and this Agreement shall survive any sale of assets, merger, consolidation, or other change in corporate structure. I understand that my obligations under this Agreement will continue in accordance with its express terms regardless of any changes in my title, position, duties, salary, compensation or benefits or other terms and conditions of employment or any transfer between Company entities and that no such changes shall constitute a termination of my employment. I also acknowledge that provisions of this Agreement shall continue in effect following the termination of my employment as specified above. Notwithstanding the foregoing, if my employment terminates without Cause upon or following a Change of Control or a Sale Event, my obligations under Section 3 (“Non-Solicitation/Non-Accept”) shall no longer be in effect. For purposes of this Agreement, (i) a termination without “Cause” shall have the same meaning as a Job Elimination, as that term is defined in the BPFH Severance Pay Plan as in effect on the date of this Agreement; and (ii) the terms “Change of Control” and “Sale Event” shall have the same meanings as set forth in the Plan.

11.Waiver. The waiver by the Company of any breach of any provision of this Agreement shall not be construed as a waiver of any subsequent breach of such provision or the breach of any other provision contained in this Agreement.

8

12.Governing Law. This Agreement shall be construed in accordance with and governed by the substantive laws of the Commonwealth of Massachusetts without regard to conflict of law provisions.

13.Knowledge of Rights and Duties. I have carefully reviewed and completely read all of the provisions of this Agreement and understand my rights, duties, obligations and responsibilities under this Agreement. I acknowledge that I am knowingly and voluntarily entering into this Agreement.

IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date shown below.

	Martha T. Higgins, Executive Vice President
EMPLOYEE (Print Name)	FOR THE COMPANY (Print name, title & employer)
Signature	Signature
Date

9

EXHIBIT I (b): NON-SOLICITATION AND

CONFIDENTIALITY AGREEMENT (FOR CALIFORNIA RESIDENTS ONLY)

I acknowledge that I enter into this Non-Solicitation and Confidentiality Agreement (the “Agreement”) in connection with an award of restricted stock or a grant of a stock option (together, an “Award”) that is made on or about the date of the proposal of this Agreement, pursuant to the Boston Private Financial Holdings, Inc. 2009 Stock Option and Incentive Plan or any subsequent stock option and/or restricted stock plan of Boston Private Financial Holdings, Inc. (together, the “Plan”) and that I shall forfeit the Award (whether vested or unvested) if I do not execute this Non-Solicitation and Confidentiality Agreement (the “Agreement”) within 30 days of the grant date of the Award.

For purposes of this Agreement, the “Company” refers to Boston Private Financial Holdings, Inc. (“BPFH”) and any and all of its wholly or partially owned subsidiaries.

In consideration for my eligibility for any Award, I hereby agree as follows:

1.Confidential Information. During my employment with the Company and at all times thereafter, I shall keep secret and retain in strictest confidence, and shall not disclose or use, other than in the proper performance of my responsibilities for the Company, any Confidential Information. “Confidential Information” means any information, whether or not in writing, concerning the Company’s business or activities that the Company has not released to the general public. I acknowledge that all Confidential Information is the property of the Company. I understand that the term “Confidential Information” includes, but is not limited to financial statements, business plans, document templates, term sheets, policies and procedures, proprietary training materials, personnel, board materials and minutes, operations, customer and client lists and identities, potential customers and clients, vendor lists and agreements, employees, servicing methods, strategies and strategic planning materials, analyses, profit margins and other proprietary information in connection with the Company; provided, however, that Confidential Information shall not include any information which is generally known to the public or becomes known in the industry through no wrongful act on my part. Confidential Information also includes information received in confidence by the Company from its customers, clients or other third parties.

2.Return of Confidential Information and Other Property. I shall deliver to the Company all copies of Confidential Information and other Company property (which includes but is not limited to any documents, notes or other work product connected with or derived from my services to or affiliation with the Company, whether in electronic or paper form) in my possession or control upon the earlier of a request by the Company or termination of my employment.

3.Non-Solicitation. During my employment with the Company, and for the period ending on the first anniversary of the effective date of my termination of employment with the Company, I shall not, directly or indirectly, solicit any person then, or within the prior six (6) months, employed by the Company, or request, influence or advise any person who at the time of such communication is employed by the Company to leave such employment.

10

4.Other Obligations. I represent and warrant to the Company that I am not under any contract, agreement or restrictive covenant, and have not previously executed any documents whatsoever with any other person, firm, association, or corporation, that will, in any manner, prevent me from performing any of the job duties and responsibilities that may be assigned to me from time to time by the Company. I also represent and warrant that I will not bring and have not brought with me to the Company and that I will not use in the course and scope of my employment with the Company any confidential, proprietary and/or trade secret materials, documents or information that I obtained from a former employer or other individual or entity, without the express written authorization of the pertinent former employer or other individual or entity. I further represent and warrant that, during my employment with the Company, I will not breach any obligation or duty to maintain confidential and not to disclose or use that I may owe to any former employer or other individual or entity, and I agree to fulfill and comply with any and all such obligations and duties during my employment by the Company.

5.Notice to Future Employers. I agree that during my employment with the Company and for the period of one (1) year following the termination of my employment with the Company for any reason, I will inform each prospective new employer I may have, prior to accepting employment, of the existence of this Agreement, and I shall provide each prospective employer with a copy of this Agreement. I also agree that the Company has the right to independently contact any potential or actual future employer of mine to notify the future employer of my obligations under this Agreement and provide such future employer with a copy of this Agreement.

6.Enforcement and Remedies. I hereby acknowledge that upon my breach of any of the covenants contained in this Agreement, the Company will suffer irreparable harm for which the remedy at law will be inadequate, and that an injunction may be entered against me by any court having jurisdiction, restraining me from breaching any of the provisions of this Agreement or continuing the breach of any such provisions, without the necessity of posting a bond. Resort to such equitable relief shall not be construed to be a waiver by the Company of any other rights or remedies that the Company may have to recover damages or other relief. In addition, if the Company prevails in an action to enforce this Agreement, I shall compensate the Company for its reasonable attorneys’ fees and related expenses incurred in enforcing this Agreement.

7.At-Will Employment. It is my understanding that the Company or I may terminate my employment at any time, with or without cause; provided that if I have entered into or in the future enter into a separate written and fully executed employment agreement that expressly provides for employment on other than an at-will basis, my employment status pursuant to such agreement shall supersede the foregoing acknowledgment of at-will employment.

8.Amendment or Modification. This Agreement may not be changed or amended except in writing signed by myself and the Company.

9.Severability. All provisions, terms, conditions, paragraphs, agreements and covenants (“Provisions”) contained in this Agreement are severable and, in the event any one of them shall be held to be invalid, this Agreement shall be interpreted as if such Provision was not contained herein, and such determination shall not otherwise affect the validity of any other Provision.

11

10.Survival and Assignment by the Company. The Company may assign the rights given to it in this Agreement, and this Agreement shall survive any sale of assets, merger, consolidation, or other change in corporate structure. I understand that my obligations under this Agreement will continue in accordance with its express terms regardless of any changes in my title, position, duties, salary, compensation or benefits or other terms and conditions of employment or any transfer between Company entities and that no such changes shall constitute a termination of my employment. I also acknowledge that provisions of this Agreement shall continue in effect following the termination of my employment as specified above. I also acknowledge that provisions of this Agreement shall continue in effect following the termination of my employment as specified above. Notwithstanding the foregoing, if my employment terminates without Cause upon or following a Change of Control or a Sale Event, my obligations under Section 3 (“Non-Solicitation”) shall no longer be in effect. For purposes of this Agreement, (i) a termination without “Cause” shall have the same meaning as a Job Elimination, as that term is defined in the BPFH Severance Pay Plan as in effect on the date of this Agreement; and (ii) the terms “Change of Control” and “Sale Event” shall have the same meanings as set forth in the Plan.

11.Waiver. The waiver by the Company of any breach of any provision of this Agreement shall not be construed as a waiver of any subsequent breach of such provision or the breach of any other provision contained in this Agreement.

12.Governing Law. This Agreement shall be construed in accordance with and governed by the substantive laws of the State of California without regard to conflict of law provisions.

13.Knowledge of Rights and Duties. I have carefully reviewed and completely read all of the provisions of this Agreement and understand my rights, duties, obligations and responsibilities under this Agreement. I acknowledge that I am knowingly and voluntarily entering into this Agreement.

IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date shown below.

	Martha T. Higgins, Executive Vice President
EMPLOYEE (Print Name)	FOR THE COMPANY (Print name, title & employer)
Signature	Signature
Date

12

EX-10.2

Exhibit 10.2

FORM OF

RESTRICTED STOCK AWARD AGREEMENT

UNDER THE BOSTON PRIVATE FINANCIAL HOLDINGS, INC.

2009 STOCK OPTION AND INCENTIVE PLAN

Name of Grantee:    

No. of Shares:

Grant Date:

Pursuant to the Boston Private Financial Holdings, Inc. 2009 Stock Option and Incentive Plan (the “Plan”) as amended through the date hereof, Boston Private Financial Holdings, Inc. (the “Company”) hereby grants a Restricted Stock Award (an “Award”) to the Grantee named above. Upon acceptance of this Award, the Grantee shall receive the number of shares of Common Stock, par value $1.00 per share (the “Stock”) of the Company specified above, subject to the restrictions and conditions set forth herein and in the Plan. The Company acknowledges the receipt from the Grantee of consideration with respect to the par value of the Stock in the form of cash, past or future services rendered to the Company by the Grantee or such other form of consideration as is acceptable to the Administrator.

1.Acceptance of Award. The Grantee shall have no rights with respect to this Award unless he or she shall have accepted this Award electronically through the Company’s Stock Plan Administration System. The shares of Restricted Stock awarded hereunder shall be issued electronically and allocated to the Grantee’s Stock Plan Administration System account and the Grantee’s name shall be entered as the stockholder of record on the books of the Company. Thereupon, the Grantee shall have all the rights of a stockholder with respect to such shares, including voting and dividend rights, subject, however, to the restrictions and conditions specified in Paragraph 2 below. The shares of Restricted Stock so accepted shall be held in this account as granted by the Company through the vesting dates noted in Paragraph 3, below.

By accepting this Award, the Grantee hereby affirms his agreement to the terms and conditions of his Employment Agreement with the Company that addresses confidentiality of Company information and post-employment restrictions on competition and solicitation of employees and customers or clients and should be reviewed carefully by the Grantee.

2.Restrictions and Conditions.

(a)Any book entries for the shares of Restricted Stock granted herein shall bear an appropriate legend, as determined by the Administrator in its sole discretion, to the effect that such shares are subject to restrictions as set forth herein and in the Plan.

(b)Shares of Restricted Stock granted herein may not be sold, assigned, transferred, pledged or otherwise encumbered or disposed of by the Grantee prior to vesting.

1

(c)Except as otherwise provided below, if the Grantee’s employment with the Company and its Subsidiaries is voluntarily or involuntarily terminated for any reason prior to vesting of shares of Restricted Stock granted herein, all shares of Restricted Stock shall immediately and automatically be forfeited and returned to the Company.

3.Vesting of Restricted Stock. The restrictions and conditions in Paragraph 2 of this Agreement shall lapse on the Vesting Date or Dates specified in the following schedule so long as the Grantee remains an employee of the Company or a Subsidiary on such Dates. If a series of Vesting Dates is specified, then the restrictions and conditions in Paragraph 2 shall lapse only with respect to the number of shares of Restricted Stock specified as vested on such date.

Number of Shares Vested	Vesting Date
100%	May [__], 20[__]

Subsequent to such Vesting Date or Dates, the shares of Stock on which all restrictions and conditions have lapsed shall no longer be deemed Restricted Stock. The Administrator may at any time accelerate the vesting schedule specified in this Paragraph 3. Notwithstanding the foregoing and notwithstanding the terms of the Grantee’s Employment Agreement with the Company (i) if the Grantee’s employment with the Company and its Subsidiaries is terminated due to the Grantee’s death or disability (as determined by the Administrator) prior to the vesting of shares of Restricted Stock granted herein, all restrictions shall lapse and such shares shall automatically become fully vested; (ii) if the Grantee’s employment with the Company and its Subsidiaries is terminated by the Company or its Subsidiary without Cause (as defined below) the Grantee shall be immediately vested and all restrictions shall lapse with respect to a pro-rated portion of this Award, calculated based on the number of days during the applicable vesting period(s) from the Grant Date through the date of termination; (iii) notwithstanding Sections 3(c) or 19 of the Plan, and notwithstanding the provisions of any employment or other agreement between the Grantee and the Company or any Subsidiary that is in effect as of the date hereof, in the event that (x) a Change of Control (as defined in Section 19 of the Plan) or Sale Event (as defined in Section 3(c) of the Plan) occurs under which this Award is assumed or continued by the successor entity in such Change of Control or Sale Event or substituted with a new award of such successor (in accordance with Section 3(c) of the Plan), and (y) the Grantee’s employment by the Company or a Subsidiary (or such successor in the Change of Control or Sale Event) is terminated without Cause (as defined below) within 24 months following the effective date of such Change of Control or Sale Event, then, any restrictions and conditions on shares of Stock subject to this Award shall lapse and this Award shall automatically become fully vested as of the date of such termination; and (iv) in the event of a Change of Control or Sale Event under which this Award is not assumed or continued by the successor entity in such Change of Control or Sale Event or substituted with a new award of such successor, any restrictions and conditions on shares of Stock subject to this Award shall lapse and this Award shall automatically become fully vested, subject to the provisions of the Plan, as of the effective time of such Change of Control or Sale Event. The Administrator’s determination of the reason for termination of the Grantee’s employment shall be conclusive and binding on the Grantee and his or her representatives or legatees.

2

For purposes hereof, “Cause” shall mean, unless otherwise provided in an employment or other agreement between the Company and the Grantee, a determination by the Administrator that the Grantee shall be dismissed as a result of (i) any material breach by the Grantee of any agreement between the Grantee and the Company; (ii) the conviction of, indictment for or plea of nolo contendere by the Grantee to a felony or a crime involving moral turpitude; or (iii) any material misconduct or willful and deliberate non-performance (other than by reason of disability) by the Grantee of the Grantee’s duties to the Company.

4.Dividends. Dividends on Shares of Restricted Stock shall be accumulated and shall be subject to restrictions, conditions and risk of forfeiture to the same extent as the Shares of Restricted Stock granted hereunder. Such accumulated dividends shall be distributed and paid to the Grantee at such time and only to the extent that the Shares subject to this Award shall vest in accordance with Section 3.

5.Incorporation of Plan. Notwithstanding anything herein to the contrary, this Agreement shall be subject to and governed by all the terms and conditions of the Plan, including the powers of the Administrator set forth in Section 2(b) of the Plan. Capitalized terms in this Agreement shall have the meaning specified in the Plan, unless a different meaning is specified herein.

6.Transferability. This Agreement is personal to the Grantee, is non-assignable and is not transferable in any manner, by operation of law or otherwise, other than by will or the laws of descent and distribution.

7.Tax Withholding. The Grantee shall, not later than the date as of which the receipt of this Award becomes a taxable event for Federal income tax purposes, pay to the Company or make arrangements satisfactory to the Administrator for payment of any Federal, state, and local taxes required by law to be withheld on account of such taxable event. Except in the case where an election is made pursuant to Paragraph 8 below, the Grantee may elect to have the required minimum tax withholding obligation satisfied, in whole or in part, by authorizing the Company to withhold from shares of Stock to be issued or released by the transfer agent a number of shares of Stock with an aggregate Fair Market Value that would satisfy the withholding amount due.

8.Election Under Section 83(b). The Grantee and the Company hereby agree that the Grantee may, within 30 days following the acceptance of this Award as provided in Paragraph 1 hereof, file with the Internal Revenue Service and the Company an election under Section 83(b) of the Internal Revenue Code. In the event the Grantee makes such an election, he or she agrees to provide a copy of the election to the Company. The Grantee acknowledges that he or she is responsible for obtaining the advice of his or her tax advisors with regard to the Section 83(b) election and that he or she is relying solely on such advisors and not on any statements or representations of the Company or any of its agents with regard to such election.

9.No Obligation to Continue Employment. Neither the Company nor any Subsidiary is obligated by or as a result of the Plan or this Agreement to continue the Grantee in employment and neither the Plan nor this Agreement shall interfere in any way with the right of the Company or any Subsidiary to terminate the employment of the Grantee at any time.

3

10.Clawback. If the Company or its Subsidiaries terminate the Grantee’s service relationship due to the Grantee’s gross negligence or willful misconduct (whether or not such actions also constitute Cause hereunder) which conduct, directly or indirectly results in the Company preparing an accounting restatement, and/or, if the Grantee breaches any provision of the Non-Solicitation Agreement (or, if applicable, such other agreement referenced in Paragraph 1, above) any shares of Stock granted hereunder, whether or not vested, (and any gains thereon) shall be subject to forfeiture, recovery and “clawback.”

11.Notices. Notices hereunder shall be mailed or delivered to the Company at its principal place of business and shall be mailed or delivered to the Grantee at the address on file with the Company or, in either case, at such other address as one party may subsequently furnish to the other party in writing.

	BOSTON PRIVATE FINANCIAL HOLDINGS, INC.
By:
	Name:	Martha T. Higgins
	Title:	Executive Vice President

The foregoing Agreement is hereby accepted and the terms and conditions thereof hereby agreed to by the undersigned.

Dated:
	Grantee’s Signature
	Grantee’s name and address

4

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: May 8, 2013	Clayton G. Deutsch President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION OF THE CHIEF FINANCIAL OFFICER

I, David J. Kaye, 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/    DAVID J. KAYE
Date: May 8, 2013	David J. Kaye 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 endedMarch 31, 2013 (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 President and Chief Executive Officer
Date: May 8, 2013

*     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 endedMarch 31, 2013 (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/    DAVID J. KAYE
	David J. Kaye Chief Financial Officer
Date: May 8, 2013

*     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

Investments Maturities of AFS Securities (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Amortized Cost Basis	$ 59,431
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Fair Value	59,895
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Amortized Cost Basis	279,380
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Fair Value	281,892
Investment securities available for sale at amortized cost	728,989	690,556
Available-for-sale Securities, Debt Maturities, after Ten Years, Amortized Cost Basis	308,537
Available-for-sale Securities, Debt Maturities, after Ten Years, Fair Value	312,109
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Amortized Cost Basis	81,641
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Fair Value	82,714
Available-for-sale Securities	$ 736,610	$ 699,300

XML

Loan Portfolio and Credit Quality Loan footnote text disclosures (Details) (USD $)	Mar. 31, 2013	Dec. 31, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Deferred Income	$ (3,600,000)	$ (4,200,000)
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing	50,000	3,556,000
Financing Receivable, Modifications, Recorded Investment	61,200,000	54,500,000
Minimum [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Time to obtain new appraisal on impaired loans	12
Maximum [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Time to obtain new appraisal on impaired loans	18
Accruing Troubled Debt Restructured Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Modifications, Recorded Investment	$ 29,900,000	$ 26,700,000

XML

Loan Portfolio and Credit Quality Loans by Portfolio Segment (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 4,783,467	$ 4,814,136
Commercial and industrial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	788,512	806,326
Commercial real estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	1,688,441	1,691,350
Construction and land [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	148,917	137,570
Residential [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	1,898,413	1,906,089
Home equity [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	118,182	123,551
Consumer and other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 141,002	$ 149,250

XML

Allowance for Loan Losses Allowance Rollforward (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans and Leases Receivable, Allowance at Beginning of Period	$ 84,057	$ 96,114
Provision/ (Credit) for loan losses	0	4,000
Financing Receivable, Allowance for Credit Losses, Charge-offs	2,893	2,941
Financing Receivable, Allowance for Credit Losses, Recoveries	1,122	729
Loans and Leases Receivable, Allowance at End of Period	82,286	97,902
Commercial and industrial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans and Leases Receivable, Allowance at Beginning of Period	11,825	12,163
Provision/ (Credit) for loan losses	(114)	1,827
Financing Receivable, Allowance for Credit Losses, Charge-offs	27	2,311
Financing Receivable, Allowance for Credit Losses, Recoveries	165	383
Loans and Leases Receivable, Allowance at End of Period	11,849	12,062
Commercial real estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans and Leases Receivable, Allowance at Beginning of Period	52,497	63,625
Provision/ (Credit) for loan losses	(919)	2,030
Financing Receivable, Allowance for Credit Losses, Charge-offs	1,239	406
Financing Receivable, Allowance for Credit Losses, Recoveries	127	117
Loans and Leases Receivable, Allowance at End of Period	50,466	65,366
Construction and land [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans and Leases Receivable, Allowance at Beginning of Period	5,016	6,382
Provision/ (Credit) for loan losses	(1,036)	(712)
Financing Receivable, Allowance for Credit Losses, Charge-offs	0	0
Financing Receivable, Allowance for Credit Losses, Recoveries	807	166
Loans and Leases Receivable, Allowance at End of Period	4,787	5,836
Residential [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans and Leases Receivable, Allowance at Beginning of Period	10,892	9,286
Provision/ (Credit) for loan losses	1,827	966
Financing Receivable, Allowance for Credit Losses, Charge-offs	1,265	198
Financing Receivable, Allowance for Credit Losses, Recoveries	0	0
Loans and Leases Receivable, Allowance at End of Period	11,454	10,054
Home equity [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans and Leases Receivable, Allowance at Beginning of Period	1,085	1,535
Provision/ (Credit) for loan losses	398	(53)
Financing Receivable, Allowance for Credit Losses, Charge-offs	360	0
Financing Receivable, Allowance for Credit Losses, Recoveries	23	61
Loans and Leases Receivable, Allowance at End of Period	1,146	1,543
Consumer and other [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans and Leases Receivable, Allowance at Beginning of Period	540	1,149
Provision/ (Credit) for loan losses	(74)	(116)
Financing Receivable, Allowance for Credit Losses, Charge-offs	2	26
Financing Receivable, Allowance for Credit Losses, Recoveries	0	2
Loans and Leases Receivable, Allowance at End of Period	464	1,009
Unallocated Financing Receivables [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans and Leases Receivable, Allowance at Beginning of Period	2,202	1,974
Provision/ (Credit) for loan losses	(82)	58
Loans and Leases Receivable, Allowance at End of Period	$ 2,120	$ 2,032

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Fair Value Measurements Quantitiative Information about Level 3 Non-Recurring Assets (Details) (Fair Value, Measurements, Nonrecurring [Member], USD $) In Thousands, unless otherwise specified						3 Months Ended	12 Months Ended	3 Months Ended	12 Months Ended	3 Months Ended	12 Months Ended
	Mar. 31, 2013		Dec. 31, 2012	Mar. 31, 2012		Mar. 31, 2013 Loans Receivable [Member] Weighted Average [Member]	Dec. 31, 2012 Loans Receivable [Member] Weighted Average [Member]	Mar. 31, 2013 Loans Receivable [Member] Minimum [Member]	Dec. 31, 2012 Loans Receivable [Member] Minimum [Member]	Mar. 31, 2013 Loans Receivable [Member] Maximum [Member]	Dec. 31, 2012 Loans Receivable [Member] Maximum [Member]	Dec. 31, 2012 Other Real Estate Owned [Member] Weighted Average [Member]	Dec. 31, 2012 Other Real Estate Owned [Member] Minimum [Member]	Dec. 31, 2012 Other Real Estate Owned [Member] Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]
Loans Receivable, Fair Value Disclosure	$ 4,494	[1]	$ 16,797	$ 4,894	[2]
Other Real Estate Owned, Fair Value Disclosure			$ 379	$ 198	[3]
Fair Value Inputs, Discount Rate						7.00%	8.00%	0.00%	6.00%	12.00%	13.00%	8.00%	8.00%	8.00%
Fair Value Inputs, Comparability Adjustments						17.00%	23.00%	0.00%	0.00%	25.00%	59.00%	8.00%	8.00%	8.00%

[1] (1)Collateral-dependent impaired loans held at March 31, 2013 that had write-downs in fair value or whose specific reserve changed during the first three months of 2013.

[2] (1)Collateral-dependent impaired loans held at March 31, 2012 that had write-downs in fair value or whose specific reserve changed during the first three months of 2012.

[3] (2)One OREO property held at March 31, 2012 had a write-down during the first three months of 2012.

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Earnings Per Share Diluted Earnings Per Share (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2013		Mar. 31, 2012
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Net Income (Loss) from Continuing Ops Available to Common Stockholders, Basic	$ 10,293		$ 7,010
Dilutive Securities, Effect on Basic Earnings Per Share	0		0
Net Income (Loss) from Continuing Operations Available to Common Stockholders, Diluted	10,293		7,010
Net Income from Discontinued Ops Available to Common Stockholders, Basic	1,545		1,385
Net Income (Loss) Available to Common Stockholders, Diluted	$ 11,838		$ 8,395
Income (Loss) from Continuing Operations, Per Diluted Share	$ 0.13		$ 0.09
Income (Loss) from Discontinued Operations, Net of Tax, Per Diluted Share	$ 0.02		$ 0.02
Earnings Per Share, Diluted	$ 0.15		$ 0.11
Common Stock, Dividends, Per Share, Cash Paid	$ 0.05		$ 0.01
Common Stock [Member]
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Weighted Average Basic Common Shares Outstanding	76,818,610		75,632,980
Incremental Common Shares Attributable to Share-based Payment Arrangements	561,128	[1]	453,626	[1]
Incremental Common Shares Attributable to Call Options and Warrants	445,692	[1]	346,245	[1]
Weighted Average Number Diluted Shares Outstanding Adjustment	1,006,820		799,871
Weighted Average Number of Shares Outstanding, Diluted	77,825,430	[1]	76,432,851	[1]

[1] The diluted EPS computations for the three months ended March 31, 2013 and 2012 do not assume the conversion, exercise, or contingent issuance of the following shares for these 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 March 31, 2013 2012Shares excluded due to anti-dilution (treasury method):(In thousands)Potential common shares from: Convertible trust preferred securities (a)21 1,399Total shares excluded due to anti-dilution21 1,399 Three months ended March 31, 2013 2012Shares 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, performance-based restricted stock, or other dilutive securities (b)1,627 2,495Total shares excluded due to exercise price exceeding the average market price of common shares during the period1,627 2,495(a) If the effect of the conversion of the trust preferred securities would have been dilutive, interest expense, net of tax, related to the convertible trust preferred securities of $0.3 million for the three months ended March 31, 2012 would have been added back to net income attributable to common shareholders for diluted EPS computations for the period presented. None would be added back for the three months ended March 31, 2013.(b)Options to purchase shares of common stock, non-participating (performance-based) restricted stock, and other dilutive securities that were outstanding at period ends were not included in the computation of diluted EPS or in the above anti-dilution table because their exercise or conversion prices were greater than the average market price of the common shares during the respective periods.

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Derivatives and Hedging Activities Derivatives Fair Value and Balance Sheet Classification (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013		Dec. 31, 2012
Other Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value, Gross Asset	$ 2,880	[1]	$ 3,035	[1]
Other Liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative Liability, Fair Value, Gross Liability	(7,712)	[1]	(8,356)	[1]
Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Other Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value, Gross Asset	0	[1]	0	[1]
Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Other Liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative Liability, Fair Value, Gross Liability	(4,750)	[1]	(5,189)	[1]
Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member] | Other Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value, Gross Asset	2,664	[1]	2,915	[1]
Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member] | Other Liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative Liability, Fair Value, Gross Liability	(2,746)	[1]	(3,047)	[1]
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | Other Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value, Gross Asset	216	[1]	120	[1]
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | Other Liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative Liability, Fair Value, Gross Liability	$ (216)	[1]	$ (120)	[1]

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

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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2013

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

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 March 31, 2013 and December 31, 2012, aggregated by the level in the fair value hierarchy within which those measurements fall:

	As of March 31, 2013		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	$	2,414	$	—	$	2,414	$	—
Government-sponsored entities	200,253		—		200,253		—
Municipal bonds	207,654		—		207,654		—
Mortgage-backed securities	314,416		—		314,416		—
Other	11,873		11,873		—		—
Total available for sale securities	736,610		11,873		724,737		—
Derivatives - interest rate customer swaps	2,664		—		2,664		—
Derivatives - customer foreign exchange forwards	216		—		216		—
Other investments	6,010		5,324		686		—
Liabilities:
Derivatives - interest rate customer swaps	$	2,746	$	—	$	2,746	$	—
Derivatives - customer foreign exchange forwards	216		—		216		—
Derivatives - junior subordinated debenture interest rate swap	4,750		—		4,750		—

			Fair value measurements at reporting date using:
	As of December 31, 2012		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	$	2,753	$	—	$	2,753	$	—
Government-sponsored entities	155,002		—		155,002		—
Municipal bonds	210,984		—		210,984		—
Mortgage-backed securities	317,927		—		317,927		—
Other	12,634		12,634		—		—
Total available for sale securities	699,300		12,634		686,666		—
Derivatives - interest rate customer swaps	2,915		—		2,915		—
Derivatives - customer foreign exchange forwards	120		—		120		—
Other investments	5,892		5,206		686		—
Liabilities:
Derivatives - interest rate customer swaps	$	3,047	$	—	$	3,047	$	—
Derivatives - customer foreign exchange forwards	120		—		120		—
Derivatives - junior subordinated debenture interest rate swap	5,189		—		5,189		—

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

There were no Level 3 assets at March 31, 2013 or December 31, 2012.

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 March 31, 2013 and 2012, respectively, aggregated by the level in the fair value hierarchy within which those measurements fall.

	As of March 31, 2013		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 March 31, 2013
	(In thousands)
Assets:
Impaired loans (1)	$	4,494	$	—	$	—	$	4,494	$	(1,239	)
	$	4,494	$	—	$	—	$	4,494	$	(1,239	)

___________________

(1) Collateral-dependent impaired loans held at March 31, 2013 that had write-downs in fair value or whose specific reserve changed during the first three months of 2013.

	As of March 31, 2012		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 March 31, 2012
	(In thousands)
Assets:
Impaired loans (1)	$	4,894	$	—	$	—	$	4,894	$	(979	)
OREO (2)	198		—		—		198		(41		)
	$	5,092	$	—	$	—	$	5,092	$	(1,020	)

________________

(1) Collateral-dependent impaired loans held at March 31, 2012 that had write-downs in fair value or whose specific reserve changed during the first three months of 2012.

(2) One OREO property held at March 31, 2012 had a write-down during the first three months of 2012.

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

The following table presents 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.

	March 31, 2013
	Fair Value		Valuation technique	Unobservable Input	Range of Inputs Utilized	Weighted Average of Inputs Utilized
	(In thousands)
Impaired Loans	$	4,494	Appraisals of Collateral	Discount for costs to sell	0% - 12%	7%
				Appraisal adjustments	0% - 25%	17%

	December 31, 2012
	Fair Value		Valuation technique	Unobservable Input	Range of Inputs Utilized	Weighted Average of Inputs Utilized
	(In thousands)
Impaired Loans	$	16,797	Appraisals of Collateral	Discount for costs to sell	6% - 13%	8%
				Appraisal adjustments	0% - 59%	23%
OREO	$	379	Appraisals of Collateral	Discount for costs to sell	8%	8%
				Appraisal adjustments	8%	8%

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 OREO in the tables above includes those properties that had an adjustment to fair value during the the three months ended March 31, 2013 and 2012. The Company uses appraisals as a basis for determining fair value, which management may adjust to reflect estimated fair value declines, or may 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.

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 (other than certain loans, as noted below):

	March 31, 2013
	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	$	54,136	$	54,136	$	54,136	$	—	$	—
Loans, net	4,701,181		4,716,548		—		—		4,716,548
Loans held for sale	289,180		289,180		—		289,180		—
Other financial assets	118,004		118,004		—		118,004		—
FINANCIAL LIABILITIES:
Deposits	4,517,351		4,523,775		—		4,523,775		—
Deposits held for sale	188,252		177,107		—		177,107		—
Securities sold under agreements to repurchase	122,187		123,463		—		123,463		—
Federal Funds purchased	50,000		50,000		—		50,000		—
Federal Home Loan Bank borrowings	461,411		480,402		—		480,402		—
Junior subordinated debentures	133,835		108,573		—		3,875		104,698
Other financial liabilities	9,998		9,998		—		9,998		—

	December 31, 2012
	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	$	308,744	$	308,744	$	308,744	$	—	$	—
Loans, net	4,730,079		4,766,574		—		—		4,766,574
Loans held for sale	308,390		308,908		—		308,908		—
Other financial assets	118,087		118,087		—		118,087		—
FINANCIAL LIABILITIES:
Deposits	4,885,059		4,891,465		—		4,891,465		—
Deposits held for sale	194,084		182,592		—		182,592		—
Securities sold under agreements to repurchase	116,319		117,885		—		117,885		—
Federal Funds purchased	—		—		—		—		—
Federal Home Loan Bank borrowings	408,121		428,037		—		428,037		—
Junior subordinated debentures	143,647		117,502		—		12,804		104,698
Other financial liabilities	10,058		10,058		—		10,058		—

The estimated fair values have been determined by using available quoted market information or other appropriate valuation methodologies. The aggregate fair value amounts presented do not represent the underlying value of the Company taken as a whole.

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Loan Portfolio and Credit Quality Loans by Past Due Status (Details) (USD $)	Mar. 31, 2013		Dec. 31, 2012
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Current	$ 4,693,087,000		$ 4,703,459,000
Total loans	4,783,467,000		4,814,136,000
Financing Receivable Recorded Investment 30 to 59 Days Past Due Still Accruing	13,650,000	[1]	34,939,000	[2]
Financing Receivable Recorded Investment 60 to 89 Days Past Due Still Accruing	3,654,000		11,437,000
Financing Receivable Recorded Investment Still Accruing	17,354,000		49,932,000
Financing Receivable Recorded Investment Nonaccrual Current Payment Status	30,955,000		38,415,000
Financing Receivable Recorded Investment Nonaccrual 30 to 89 Days Past Due	9,074,000		11,030,000
Financing Receivable Recorded Investment Nonaccrual Over 89 Days Past Due	32,997,000		11,300,000
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing	50,000		3,556,000
Financing Receivable, Recorded Investment, Nonaccrual Status	73,026,000		60,745,000
Commercial and industrial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Number of Loans Held for Sale 30-59 Days Past Due	1		1
Loans Held For Sale 30 to 59 Days Past Due Still Accruing	100,000		300,000
Financing Receivable, Recorded Investment, Current	774,991,000		790,838,000
Total loans	788,512,000		806,326,000
Financing Receivable Recorded Investment 30 to 59 Days Past Due Still Accruing	825,000	[1]	10,684,000	[2]
Financing Receivable Recorded Investment 60 to 89 Days Past Due Still Accruing	2,625,000		210,000
Financing Receivable Recorded Investment Still Accruing	3,450,000		11,151,000
Financing Receivable Recorded Investment Nonaccrual Current Payment Status	1,210,000		3,073,000
Financing Receivable Recorded Investment Nonaccrual 30 to 89 Days Past Due	28,000		0
Financing Receivable Recorded Investment Nonaccrual Over 89 Days Past Due	8,833,000		1,264,000
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing	0		257,000
Financing Receivable, Recorded Investment, Nonaccrual Status	10,071,000		4,337,000
Commercial real estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Current	1,640,427,000		1,638,502,000
Total loans	1,688,441,000		1,691,350,000
Financing Receivable Recorded Investment 30 to 59 Days Past Due Still Accruing	1,478,000		3,331,000
Financing Receivable Recorded Investment 60 to 89 Days Past Due Still Accruing	241,000		4,572,000
Financing Receivable Recorded Investment Still Accruing	1,719,000		11,152,000
Financing Receivable Recorded Investment Nonaccrual Current Payment Status	26,489,000		29,125,000
Financing Receivable Recorded Investment Nonaccrual 30 to 89 Days Past Due	5,968,000		8,913,000
Financing Receivable Recorded Investment Nonaccrual Over 89 Days Past Due	13,838,000		3,658,000
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing	0		3,249,000
Financing Receivable, Recorded Investment, Nonaccrual Status	46,295,000		41,696,000
Construction and land [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Current	144,003,000		132,049,000
Total loans	148,917,000		137,570,000
Financing Receivable Recorded Investment 30 to 59 Days Past Due Still Accruing	36,000		42,000
Financing Receivable Recorded Investment 60 to 89 Days Past Due Still Accruing	276,000		3,216,000
Financing Receivable Recorded Investment Still Accruing	362,000		3,308,000
Financing Receivable Recorded Investment Nonaccrual Current Payment Status	715,000		723,000
Financing Receivable Recorded Investment Nonaccrual 30 to 89 Days Past Due	38,000		137,000
Financing Receivable Recorded Investment Nonaccrual Over 89 Days Past Due	3,799,000		1,353,000
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing	50,000		50,000
Financing Receivable, Recorded Investment, Nonaccrual Status	4,552,000		2,213,000
Residential [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Current	1,875,129,000		1,870,933,000
Total loans	1,898,413,000		1,906,089,000
Financing Receivable Recorded Investment 30 to 59 Days Past Due Still Accruing	11,243,000		20,194,000
Financing Receivable Recorded Investment 60 to 89 Days Past Due Still Accruing	282,000		3,218,000
Financing Receivable Recorded Investment Still Accruing	11,525,000		23,412,000
Financing Receivable Recorded Investment Nonaccrual Current Payment Status	2,236,000		5,101,000
Financing Receivable Recorded Investment Nonaccrual 30 to 89 Days Past Due	3,039,000		1,980,000
Financing Receivable Recorded Investment Nonaccrual Over 89 Days Past Due	6,484,000		4,663,000
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing	0		0
Financing Receivable, Recorded Investment, Nonaccrual Status	11,759,000		11,744,000
Home equity [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Current	117,636,000		122,733,000
Total loans	118,182,000		123,551,000
Financing Receivable Recorded Investment 30 to 59 Days Past Due Still Accruing	31,000		119,000
Financing Receivable Recorded Investment 60 to 89 Days Past Due Still Accruing	175,000		39,000
Financing Receivable Recorded Investment Still Accruing	206,000		158,000
Financing Receivable Recorded Investment Nonaccrual Current Payment Status	300,000		300,000
Financing Receivable Recorded Investment Nonaccrual 30 to 89 Days Past Due	0		0
Financing Receivable Recorded Investment Nonaccrual Over 89 Days Past Due	40,000		360,000
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing	0		0
Financing Receivable, Recorded Investment, Nonaccrual Status	340,000		660,000
Consumer and other [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Current	140,901,000		148,404,000
Total loans	141,002,000		149,250,000
Financing Receivable Recorded Investment 30 to 59 Days Past Due Still Accruing	37,000		569,000
Financing Receivable Recorded Investment 60 to 89 Days Past Due Still Accruing	55,000		182,000
Financing Receivable Recorded Investment Still Accruing	92,000		751,000
Financing Receivable Recorded Investment Nonaccrual Current Payment Status	5,000		93,000
Financing Receivable Recorded Investment Nonaccrual 30 to 89 Days Past Due	1,000		0
Financing Receivable Recorded Investment Nonaccrual Over 89 Days Past Due	3,000		2,000
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing	0		0
Financing Receivable, Recorded Investment, Nonaccrual Status	$ 9,000		$ 95,000

[1] Does not include one commercial and industrial 30-59 day delinquent loan totaling $0.1 million in loans held for sale as of March 31, 2013.

[2] Does not include one commercial and industrial 30-59 day delinquent loan totaling $0.3 million in loans held for sale as of December 31, 2012.

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Investments Other Investment Disclosures (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2013	Dec. 31, 2012
Investments, Other Disclosures [Abstract]
Cost Method Investments, Additional Information	0	0.1
Cost Method Investments	$ 22.5	$ 24.9

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Reportable Segments Segments Text Disclosure (Details)	3 Months Ended
	Mar. 31, 2013 segments
Segment Reporting Information [Line Items]
Number of Reportable Segments	3

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Loan Portfolio and Credit Quality Impaired Loans With and Without Related Allowance (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended				12 Months Ended
	Mar. 31, 2013		Mar. 31, 2012		Dec. 31, 2012
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Recorded Investment	$ 97,146	[1]	$ 96,805	[1]
Impaired Financing Receivable, Unpaid Principal Balance	121,473		121,180
Impaired Financing Receivable, Related Allowance	4,728		4,670
Impaired Financing Receivable, Average Recorded Investment	91,074		91,613
Impaired Financing Receivable, Interest Income, Cash Basis Method	531		521
Impaired Financing Receivable, with Related Allowance, Recorded Investment	42,269	[1]	44,284	[1]
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	44,156		45,845
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment	37,648		35,347
Impaired Financing Receivable, with Related Allowance, Interest Income, Cash Basis Method	228		238
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	54,877	[1]	52,521	[1]
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	77,317		75,335
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment	53,426		56,266
Impaired Financing Receivable, with No Related Allowance, Interest Income, Cash Basis Method	303		283
Commercial and industrial [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Recorded Investment	11,104	[1]	7,619	[1]	4,423	[1]
Impaired Financing Receivable, Unpaid Principal Balance	12,353		10,373		5,690
Impaired Financing Receivable, Related Allowance	369		113		118
Impaired Financing Receivable, Average Recorded Investment	8,927		6,956		6,562
Impaired Financing Receivable, Interest Income, Cash Basis Method	85		0		1
Impaired Financing Receivable, with Related Allowance, Recorded Investment	3,245	[1]	1,081	[1]	1,149	[1]
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	3,310		1,109		1,191
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment	1,676		1,101		1,855
Impaired Financing Receivable, with Related Allowance, Interest Income, Cash Basis Method	4		0		1
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	7,859	[1]	6,538	[1]	3,274	[1]
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	9,043		9,264		4,499
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment	7,251		5,855		4,707
Impaired Financing Receivable, with No Related Allowance, Interest Income, Cash Basis Method	81		0		0
Commercial real estate [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Recorded Investment	63,823	[1]	58,085	[1]	58,652	[1]
Impaired Financing Receivable, Unpaid Principal Balance	84,480		74,433		84,238
Impaired Financing Receivable, Related Allowance	2,446		3,245		1,667
Impaired Financing Receivable, Average Recorded Investment	60,537		58,129		56,246
Impaired Financing Receivable, Interest Income, Cash Basis Method	213		277		1,010
Impaired Financing Receivable, with Related Allowance, Recorded Investment	24,475	[1]	28,121	[1]	18,519	[1]
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	25,957		29,624		19,814
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment	20,702		24,586		24,510
Impaired Financing Receivable, with Related Allowance, Interest Income, Cash Basis Method	112		173		727
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	39,348	[1]	29,964	[1]	40,133	[1]
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	58,523		44,809		64,424
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment	39,835		33,543		31,736
Impaired Financing Receivable, with No Related Allowance, Interest Income, Cash Basis Method	101		104		283
Construction and land [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Recorded Investment	4,899	[1]	7,281	[1]	2,213	[1]
Impaired Financing Receivable, Unpaid Principal Balance	5,593		11,584		3,635
Impaired Financing Receivable, Related Allowance	417		313		189
Impaired Financing Receivable, Average Recorded Investment	4,270		7,528		7,018
Impaired Financing Receivable, Interest Income, Cash Basis Method	91		97		97
Impaired Financing Receivable, with Related Allowance, Recorded Investment	3,965	[1]	1,194	[1]	903	[1]
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	4,046		1,224		953
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment	1,637		1,234		1,486
Impaired Financing Receivable, with Related Allowance, Interest Income, Cash Basis Method	0		0		0
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	934	[1]	6,087	[1]	1,310	[1]
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	1,547		10,360		2,682
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment	2,633		6,294		5,532
Impaired Financing Receivable, with No Related Allowance, Interest Income, Cash Basis Method	91		97		97
Residential [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Recorded Investment	17,280	[1]	23,329	[1]	15,876	[1]
Impaired Financing Receivable, Unpaid Principal Balance	19,007		24,299		16,392
Impaired Financing Receivable, Related Allowance	1,496		868		1,403
Impaired Financing Receivable, Average Recorded Investment	17,060		18,527		20,666
Impaired Financing Receivable, Interest Income, Cash Basis Method	141		144		686
Impaired Financing Receivable, with Related Allowance, Recorded Investment	10,584	[1]	13,757	[1]	13,539	[1]
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	10,843		13,757		13,798
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment	13,633		8,295		11,781
Impaired Financing Receivable, with Related Allowance, Interest Income, Cash Basis Method	112		63		374
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	6,696	[1]	9,572	[1]	2,337	[1]
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	8,164		10,542		2,594
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment	3,427		10,232		8,885
Impaired Financing Receivable, with No Related Allowance, Interest Income, Cash Basis Method	29		81		312
Home equity [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Recorded Investment	40	[1]	491	[1]	360	[1]
Impaired Financing Receivable, Unpaid Principal Balance	40		491		360
Impaired Financing Receivable, Related Allowance	0		131		0
Impaired Financing Receivable, Average Recorded Investment	280		473		469
Impaired Financing Receivable, Interest Income, Cash Basis Method	1		3		8
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0	[1]	131	[1]	0	[1]
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	0		131		0
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment	0		131		114
Impaired Financing Receivable, with Related Allowance, Interest Income, Cash Basis Method	0		2		5
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	40	[1]	360	[1]	360	[1]
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	40		360		360
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment	280		342		355
Impaired Financing Receivable, with No Related Allowance, Interest Income, Cash Basis Method	1		1		3
Consumer and other [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Recorded Investment	0	[1]	0	[1]	0	[1]
Impaired Financing Receivable, Unpaid Principal Balance	0		0		0
Impaired Financing Receivable, Related Allowance	0		0		0
Impaired Financing Receivable, Average Recorded Investment	0		0		40
Impaired Financing Receivable, Interest Income, Cash Basis Method	0		0		0
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0	[1]	0	[1]	0	[1]
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	0		0		0
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment	0		0		0
Impaired Financing Receivable, with Related Allowance, Interest Income, Cash Basis Method	0		0		0
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	0	[1]	0	[1]	0	[1]
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	0		0		0
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment	0		0		40
Impaired Financing Receivable, with No Related Allowance, Interest Income, Cash Basis Method	0		0		0
Class of Financing Receivable [Domain]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Recorded Investment					81,524	[1]
Impaired Financing Receivable, Unpaid Principal Balance					110,315
Impaired Financing Receivable, Related Allowance					3,377
Impaired Financing Receivable, Average Recorded Investment					91,001
Impaired Financing Receivable, Interest Income, Cash Basis Method					1,802
Impaired Financing Receivable, with Related Allowance, Recorded Investment					34,110	[1]
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance					35,756
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment					39,746
Impaired Financing Receivable, with Related Allowance, Interest Income, Cash Basis Method					1,107
Impaired Financing Receivable, with No Related Allowance, Recorded Investment					47,414	[1]
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance					74,559
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment					51,255
Impaired Financing Receivable, with No Related Allowance, Interest Income, Cash Basis Method					$ 695

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

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Noncontrolling Interests Noncontrolling Interests - Text Details (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Dec. 31, 2012	Dec. 31, 2011
phantom NCI [Abstract]
Net income/ (loss) attributable to noncontrolling interests	$ 930	$ 793
Income (Loss) Attributable to Noncontrolling Interest	930	793
Stockholders' Equity Attributable to Noncontrolling Interest	0		0
Redeemable Noncontrolling Interest, Equity, Carrying Amount	$ 17,438	$ 21,604	$ 19,287	$ 21,691

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Derivatives and Hedging Activities Cash Flow Hedges Text Description (Details) (USD $)	3 Months Ended
	Mar. 31, 2013
Derivative [Line Items]
Derivative Asset, Notional Amount	$ 75,000,000
Derivative Contract Term	5 years
Derivative, Description of Hedged Item	6.25%
Derivative, Description of Variable Rate Basis	three-month LIBOR plus 1.68%
Derivative, Average Variable Interest Rate	4.45%
Loss on Cash Flow Hedge Ineffectiveness	0
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net	$ 1,800,000

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Fair Value Measurements Not Measured at Fair Value on a Recurring Basis (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013		Dec. 31, 2012	Mar. 31, 2012
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Federal Funds Purchased	$ 50,000		$ 0
Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	54,136		308,744
Loans Receivable, Fair Value Disclosure	4,701,181		4,730,079
Loans Held-for-sale, Fair Value Disclosure	289,180		308,390
Other Assets, Fair Value Disclosure	118,004		118,087
Deposits, Fair Value Disclosure	4,517,351		4,885,059
Deposits Held For Sale, Fair Value Disclosure	188,252		194,084
Securities Loaned or Sold under Agreements to Repurchase, Fair Value Disclosure	122,187		116,319
Federal Funds Purchased	50,000		0
Federal Home Loan Bank Borrowings, Fair Value Disclosure	461,411		408,121
Subordinated Debt Obligations, Fair Value Disclosure	133,835		143,647
Other Liabilities, Fair Value Disclosure	9,998		10,058
Portion at Fair Value, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	54,136		308,744
Loans Receivable, Fair Value Disclosure	4,716,548		4,766,574
Loans Held-for-sale, Fair Value Disclosure	289,180		308,908
Other Assets, Fair Value Disclosure	118,004		118,087
Deposits, Fair Value Disclosure	4,523,775		4,891,465
Deposits Held For Sale, Fair Value Disclosure	177,107		182,592
Securities Loaned or Sold under Agreements to Repurchase, Fair Value Disclosure	123,463		117,885
Federal Funds Purchased	50,000		0
Federal Home Loan Bank Borrowings, Fair Value Disclosure	480,402		428,037
Subordinated Debt Obligations, Fair Value Disclosure	108,573		117,502
Other Liabilities, Fair Value Disclosure	9,998		10,058
Fair Value, Inputs, Level 1 [Member] | Portion at Fair Value, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	54,136		308,744
Loans Receivable, Fair Value Disclosure	0		0
Loans Held-for-sale, Fair Value Disclosure	0		0
Other Assets, Fair Value Disclosure	0		0
Deposits, Fair Value Disclosure	0		0
Deposits Held For Sale, Fair Value Disclosure	0		0
Securities Loaned or Sold under Agreements to Repurchase, Fair Value Disclosure	0		0
Federal Funds Purchased	0		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
Fair Value, Inputs, Level 2 [Member] | Portion at Fair Value, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	0		0
Loans Receivable, Fair Value Disclosure	0		0
Loans Held-for-sale, Fair Value Disclosure	289,180		308,908
Other Assets, Fair Value Disclosure	118,004		118,087
Deposits, Fair Value Disclosure	4,523,775		4,891,465
Deposits Held For Sale, Fair Value Disclosure	177,107		182,592
Securities Loaned or Sold under Agreements to Repurchase, Fair Value Disclosure	123,463		117,885
Federal Funds Purchased	50,000		0
Federal Home Loan Bank Borrowings, Fair Value Disclosure	480,402		428,037
Subordinated Debt Obligations, Fair Value Disclosure	3,875		12,804
Other Liabilities, Fair Value Disclosure	9,998		10,058
Fair Value, Inputs, Level 3 [Member] | Portion at Fair Value, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	0		0
Loans Receivable, Fair Value Disclosure	4,716,548		4,766,574
Loans Held-for-sale, Fair Value Disclosure	0		0
Other Assets, Fair Value Disclosure	0		0
Deposits, Fair Value Disclosure	0		0
Deposits Held For Sale, Fair Value Disclosure	0		0
Securities Loaned or Sold under Agreements to Repurchase, Fair Value Disclosure	0		0
Federal Funds Purchased	0		0
Federal Home Loan Bank Borrowings, Fair Value Disclosure	0		0
Subordinated Debt Obligations, Fair Value Disclosure	104,698		104,698
Other Liabilities, Fair Value Disclosure	0		0
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans Receivable, Fair Value Disclosure	4,494	[1]	16,797	4,894	[2]
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans Receivable, Fair Value Disclosure	0	[1]		0	[2]
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans Receivable, Fair Value Disclosure	0	[1]		0	[2]
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans Receivable, Fair Value Disclosure	$ 4,494	[1]		$ 4,894	[2]

[1] (1)Collateral-dependent impaired loans held at March 31, 2013 that had write-downs in fair value or whose specific reserve changed during the first three months of 2013.

[2] (1)Collateral-dependent impaired loans held at March 31, 2012 that had write-downs in fair value or whose specific reserve changed during the first three months of 2012.

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Basis of Presentation and Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2013

Organization, Consolidation and Presentation of Financial Statements [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 with three reportable segments: Private Banking, Investment Management, and Wealth Advisory.

Boston Private Bank & Trust Company (the “Bank” or “Boston Private Bank”) is a trust company chartered by The Commonwealth of Massachusetts, insured by the Federal Deposit Insurance Corporation (the “FDIC”), and a wholly-owned subsidiary of the Company. Boston Private Bank operates primarily in four geographic markets: New England, San Francisco Bay, Southern California, and the Pacific Northwest. The Bank currently conducts business under the name of Boston Private Bank & Trust Company in all markets. In December 2012, the Bank entered into a definitive agreement to sell its three offices in the Pacific Northwest market.

The Investment Management segment has two consolidated affiliates, consisting of Dalton, Greiner, Hartman, Maher & Co., LLC (“DGHM”) and Anchor Capital Advisors, LLC (“Anchor”) (together, the “Investment Managers”), both of which are registered investment advisers. Effective January 1, 2013, Anchor/Russell Capital Advisors LLC (“Anchor Russell”) merged into Anchor, with Anchor as the surviving entity. Anchor Capital Holdings, LLC, the former holding company of Anchor and Anchor Russell, which was dissolved upon the merger of Anchor and Anchor Russell, has been reinstated but will remain a pass through entity with no operations. It will continue to be disregarded for tax purposes.

The Wealth Advisory segment has two consolidated affiliate partners, KLS Professional Advisors Group, LLC (“KLS”) and Bingham, Osborn & Scarborough, LLC (“BOS”) (together, the “Wealth Advisors”). In the second quarter of 2012, the Company sold its affiliate Davidson Trust Company (“DTC”). Accordingly, prior period and current financial information related to DTC is included with discontinued operations.

The Company conducts substantially all of its business through its three 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, 2012, 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, 2012, as filed with the SEC. For interim reporting purposes, the Company follows the same significant accounting policies.

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Derivatives and Hedging Activities Non-designated Hedges Text description (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2013 Not Designated as Hedging Instrument [Member]	Mar. 31, 2012 Not Designated as Hedging Instrument [Member]	Mar. 31, 2013 Interest Rate Swap [Member] Not Designated as Hedging Instrument [Member] contracts	Dec. 31, 2012 Interest Rate Swap [Member] Not Designated as Hedging Instrument [Member] contracts	Dec. 31, 2012 Interest Rate Swap [Member] Designated as Hedging Instrument [Member]	Mar. 31, 2013 Foreign Exchange Contract [Member] Not Designated as Hedging Instrument [Member] contracts	Dec. 31, 2012 Foreign Exchange Contract [Member] Not Designated as Hedging Instrument [Member] contracts
Derivative [Line Items]
Derivative, Collateral, Obligation to Return Cash			$ 7.6	$ 8.4
Derivative, Collateral, Right to Reclaim Cash					10.4
Derivative Credit Risk Valuation Adjustment, Derivative Assets	(0.1)	0.1
Derivative, Number of Instruments Held			8	11		14	6
Derivative, Notional Amount			$ 52.1	$ 55.7		$ 10.7	$ 3.7

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Fair Value Measurements Fair Value Recurring Basis (Details) (Fair Value, Measurements, Recurring [Member], USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012	Mar. 31, 2013 Designated as Hedging Instrument [Member] Interest Rate Contract [Member]	Dec. 31, 2012 Designated as Hedging Instrument [Member] Interest Rate Contract [Member]	Mar. 31, 2013 Not Designated as Hedging Instrument [Member] Interest Rate Contract [Member]	Dec. 31, 2012 Not Designated as Hedging Instrument [Member] Interest Rate Contract [Member]	Mar. 31, 2013 Not Designated as Hedging Instrument [Member] Foreign Exchange Contract [Member]	Dec. 31, 2012 Not Designated as Hedging Instrument [Member] Foreign Exchange Contract [Member]	Mar. 31, 2013 US Government and Government Agencies and Authorities [Member]	Dec. 31, 2012 US Government and Government Agencies and Authorities [Member]	Mar. 31, 2013 US Government-sponsored Enterprises Debt Securities [Member]	Dec. 31, 2012 US Government-sponsored Enterprises Debt Securities [Member]	Mar. 31, 2013 Municipal Bonds [Member]	Dec. 31, 2012 Municipal Bonds [Member]	Mar. 31, 2013 Mortgage Backed Securities, Other [Member]	Dec. 31, 2012 Mortgage Backed Securities, Other [Member]	Mar. 31, 2013 Other Aggregated Investments [Member]	Dec. 31, 2012 Other Aggregated Investments [Member]	Mar. 31, 2013 Fair Value, Inputs, Level 1 [Member]	Dec. 31, 2012 Fair Value, Inputs, Level 1 [Member]	Mar. 31, 2013 Fair Value, Inputs, Level 1 [Member] Designated as Hedging Instrument [Member] Interest Rate Contract [Member]	Dec. 31, 2012 Fair Value, Inputs, Level 1 [Member] Designated as Hedging Instrument [Member] Interest Rate Contract [Member]	Mar. 31, 2013 Fair Value, Inputs, Level 1 [Member] Not Designated as Hedging Instrument [Member] Interest Rate Contract [Member]	Dec. 31, 2012 Fair Value, Inputs, Level 1 [Member] Not Designated as Hedging Instrument [Member] Interest Rate Contract [Member]	Mar. 31, 2013 Fair Value, Inputs, Level 1 [Member] Not Designated as Hedging Instrument [Member] Foreign Exchange Contract [Member]	Dec. 31, 2012 Fair Value, Inputs, Level 1 [Member] Not Designated as Hedging Instrument [Member] Foreign Exchange Contract [Member]	Mar. 31, 2013 Fair Value, Inputs, Level 1 [Member] US Government and Government Agencies and Authorities [Member]	Dec. 31, 2012 Fair Value, Inputs, Level 1 [Member] US Government and Government Agencies and Authorities [Member]	Mar. 31, 2013 Fair Value, Inputs, Level 1 [Member] US Government-sponsored Enterprises Debt Securities [Member]	Dec. 31, 2012 Fair Value, Inputs, Level 1 [Member] US Government-sponsored Enterprises Debt Securities [Member]	Mar. 31, 2013 Fair Value, Inputs, Level 1 [Member] Municipal Bonds [Member]	Dec. 31, 2012 Fair Value, Inputs, Level 1 [Member] Municipal Bonds [Member]	Dec. 31, 2012 Fair Value, Inputs, Level 1 [Member] Mortgage Backed Securities, Other [Member]	Sep. 30, 2012 Fair Value, Inputs, Level 1 [Member] Mortgage Backed Securities, Other [Member]	Mar. 31, 2013 Fair Value, Inputs, Level 1 [Member] Other Aggregated Investments [Member]	Dec. 31, 2012 Fair Value, Inputs, Level 1 [Member] Other Aggregated Investments [Member]	Mar. 31, 2013 Fair Value, Inputs, Level 2 [Member]	Dec. 31, 2012 Fair Value, Inputs, Level 2 [Member]	Mar. 31, 2013 Fair Value, Inputs, Level 2 [Member] Designated as Hedging Instrument [Member] Interest Rate Contract [Member]	Dec. 31, 2012 Fair Value, Inputs, Level 2 [Member] Designated as Hedging Instrument [Member] Interest Rate Contract [Member]	Mar. 31, 2013 Fair Value, Inputs, Level 2 [Member] Not Designated as Hedging Instrument [Member] Interest Rate Contract [Member]	Dec. 31, 2012 Fair Value, Inputs, Level 2 [Member] Not Designated as Hedging Instrument [Member] Interest Rate Contract [Member]	Mar. 31, 2013 Fair Value, Inputs, Level 2 [Member] Not Designated as Hedging Instrument [Member] Foreign Exchange Contract [Member]	Dec. 31, 2012 Fair Value, Inputs, Level 2 [Member] Not Designated as Hedging Instrument [Member] Foreign Exchange Contract [Member]	Mar. 31, 2013 Fair Value, Inputs, Level 2 [Member] US Government and Government Agencies and Authorities [Member]	Dec. 31, 2012 Fair Value, Inputs, Level 2 [Member] US Government and Government Agencies and Authorities [Member]	Mar. 31, 2013 Fair Value, Inputs, Level 2 [Member] US Government-sponsored Enterprises Debt Securities [Member]	Dec. 31, 2012 Fair Value, Inputs, Level 2 [Member] US Government-sponsored Enterprises Debt Securities [Member]	Mar. 31, 2013 Fair Value, Inputs, Level 2 [Member] Municipal Bonds [Member]	Dec. 31, 2012 Fair Value, Inputs, Level 2 [Member] Municipal Bonds [Member]	Mar. 31, 2013 Fair Value, Inputs, Level 2 [Member] Mortgage Backed Securities, Other [Member]	Dec. 31, 2012 Fair Value, Inputs, Level 2 [Member] Mortgage Backed Securities, Other [Member]	Mar. 31, 2013 Fair Value, Inputs, Level 2 [Member] Other Aggregated Investments [Member]	Dec. 31, 2012 Fair Value, Inputs, Level 2 [Member] Other Aggregated Investments [Member]	Mar. 31, 2013 Fair Value, Inputs, Level 3 [Member]	Dec. 31, 2012 Fair Value, Inputs, Level 3 [Member]	Mar. 31, 2013 Fair Value, Inputs, Level 3 [Member] Designated as Hedging Instrument [Member] Interest Rate Contract [Member]	Dec. 31, 2012 Fair Value, Inputs, Level 3 [Member] Designated as Hedging Instrument [Member] Interest Rate Contract [Member]	Mar. 31, 2013 Fair Value, Inputs, Level 3 [Member] Not Designated as Hedging Instrument [Member] Interest Rate Contract [Member]	Dec. 31, 2012 Fair Value, Inputs, Level 3 [Member] Not Designated as Hedging Instrument [Member] Interest Rate Contract [Member]	Mar. 31, 2013 Fair Value, Inputs, Level 3 [Member] Not Designated as Hedging Instrument [Member] Foreign Exchange Contract [Member]	Dec. 31, 2012 Fair Value, Inputs, Level 3 [Member] Not Designated as Hedging Instrument [Member] Foreign Exchange Contract [Member]	Mar. 31, 2013 Fair Value, Inputs, Level 3 [Member] US Government and Government Agencies and Authorities [Member]	Dec. 31, 2012 Fair Value, Inputs, Level 3 [Member] US Government and Government Agencies and Authorities [Member]	Mar. 31, 2013 Fair Value, Inputs, Level 3 [Member] US Government-sponsored Enterprises Debt Securities [Member]	Dec. 31, 2012 Fair Value, Inputs, Level 3 [Member] US Government-sponsored Enterprises Debt Securities [Member]	Mar. 31, 2013 Fair Value, Inputs, Level 3 [Member] Municipal Bonds [Member]	Dec. 31, 2012 Fair Value, Inputs, Level 3 [Member] Municipal Bonds [Member]	Dec. 31, 2012 Fair Value, Inputs, Level 3 [Member] Mortgage Backed Securities, Other [Member]	Sep. 30, 2012 Fair Value, Inputs, Level 3 [Member] Mortgage Backed Securities, Other [Member]	Mar. 31, 2013 Fair Value, Inputs, Level 3 [Member] Other Aggregated Investments [Member]	Dec. 31, 2012 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, Fair Value Disclosure	$ 736,610	$ 699,300							$ 2,414	$ 2,753	$ 200,253	$ 155,002	$ 207,654	$ 210,984	$ 314,416	$ 317,927	$ 11,873	$ 12,634	$ 11,873	$ 12,634							$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 11,873	$ 12,634	$ 724,737	$ 686,666							$ 2,414	$ 2,753	$ 200,253	$ 155,002	$ 207,654	$ 210,984	$ 314,416	$ 317,927	$ 0	$ 0	$ 0	$ 0							$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0
Derivative Assets					2,664	2,915																	0	0																	2,664	2,915																	0	0
Foreign Currency Contract, Asset, Fair Value Disclosure							216	120																	0	0																	216	120																	0	0
Alternative Investments, Fair Value Disclosure	6,010	5,892																	5,324	5,206																	686	686																	0	0
Derivative Financial Instruments, Liabilities, Fair Value Disclosure			$ 4,750	$ 5,189	$ 2,746	$ 3,047	$ 216	$ 120													$ 0	$ 0	$ 0	$ 0	$ 0	$ 0													$ 4,750	$ 5,189	$ 2,746	$ 3,047	$ 216	$ 120													$ 0	$ 0	$ 0	$ 0	$ 0	$ 0

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Income Taxes (Tables)

3 Months Ended

Mar. 31, 2013

Income Taxes [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:

	Three months ended March 31,
	2013			2012
	(In thousands)
Income from continuing operations:
Income before income taxes	$	18,308		$	12,595
Income tax expense	5,897			3,851
Net income from continuing operations	$	12,411		$	8,744
Effective tax rate, continuing operations	32.2		%	30.6		%
Income from discontinued operations:
Income before income taxes	$	3,036		$	2,752
Income tax expense	1,314			1,198
Net income from discontinued operations	$	1,722		$	1,554
Effective tax rate, discontinued operations	43.3		%	43.5		%
Income attributable to noncontrolling interests:
Income before income taxes	$	930		$	793
Income tax expense	—			—
Net income attributable to noncontrolling interests	$	930		$	793
Effective tax rate, noncontrolling interests	—		%	—		%
Income attributable to the Company
Income before income taxes	$	20,414		$	14,554
Income tax expense	7,211			5,049
Net income attributable to the Company	$	13,203		$	9,505
Effective tax rate attributable to the Company	35.3		%	34.7		%

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Derivatives and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2013

Derivatives Fair Value and Balance Sheet Classification [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 March 31, 2013 and December 31, 2012.

	March 31, 2013							December 31, 2012
	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	$	—	Other liabilities	$	(4,750	)	Other assets	$	—	Other liabilities	$	(5,189	)
Derivatives not designated as hedging instruments:
Interest rate products	Other assets	2,664		Other liabilities	(2,746		)	Other assets	2,915		Other liabilities	(3,047		)
Foreign exchange contracts	Other assets	216		Other liabilities	(216		)	Other assets	120		Other liabilities	(120		)
Total		$	2,880		$	(7,712	)		$	3,035		$	(8,356	)

___________________

(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 table presents the effect of the Company’s derivative financial instruments in the consolidated statements of operations for the three months ended March 31, 2013 and 2012.

Derivatives in cash flow hedging relationships	Amount of gain or (loss) recognized in OCI on derivative (effective portion)						Location of gain or (loss) reclassified from accumulated OCI into income (effective portion)	Amount of gain or (loss) reclassified from accumulated OCI into income (effective portion)
	three months ended March 31,							three months ended March 31,
	2013			2012				2013			2012
(In thousands)
Interest rate products	$	(22	)	$	(277	)	Interest income	$	(461	)	$	(416	)
Total	$	(22	)	$	(277	)		$	(461	)	$	(416	)

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

The following table presents the components of the Company’s accumulated other comprehensive income/ (loss) related to the derivatives for the three months ended March 31, 2013 and 2012.

	Three months ended March 31,
	2013			2012
	(In thousands)
Accumulated other comprehensive income on cash flow hedges, balance at beginning of period	$	(2,969	)	$	(3,106	)
Net change in unrealized gain/ (loss) on cash flow hedges	207			81
Accumulated other comprehensive income on cash flow hedges, balance at end of period	$	(2,762	)	$	(3,025	)

Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block]

The following table presents the effect of the Company’s derivative financial instruments, not designated as hedging instruments, in the consolidated statement of operations for the three months ended March 31, 2013 and 2012.

Derivatives Not Designated as Hedging Instruments	Location of Gain or (Loss) Recognized in Income on Derivative	Amount of Gain or (Loss), Net, Recognized in Income on Derivative Three Months Ended March 31,
		2013			2012
		(In thousands)
Interest rate products	Other income/ expense	$	(4	)	$	81
Foreign exchange contracts	Other income/ expense	2			—
Total		$	(2	)	$	81

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Allowance for Loan Losses Allowance by impairment analysis method (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012	Mar. 31, 2012	Dec. 31, 2011
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	$ 77,558	$ 80,680
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	4,728	3,377
Loans and Leases Receivable, Allowance	82,286	84,057	97,902	96,114
Financing Receivable, Collectively Evaluated for Impairment	4,686,321	4,732,612
Financing Receivable, Individually Evaluated for Impairment	97,146	81,524
Total loans	4,783,467	4,814,136
Commercial and industrial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	11,480	11,707
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	369	118
Loans and Leases Receivable, Allowance	11,849	11,825	12,062	12,163
Financing Receivable, Collectively Evaluated for Impairment	777,408	801,903
Financing Receivable, Individually Evaluated for Impairment	11,104	4,423
Total loans	788,512	806,326
Commercial real estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	48,020	50,830
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	2,446	1,667
Loans and Leases Receivable, Allowance	50,466	52,497	65,366	63,625
Financing Receivable, Collectively Evaluated for Impairment	1,624,618	1,632,698
Financing Receivable, Individually Evaluated for Impairment	63,823	58,652
Total loans	1,688,441	1,691,350
Construction and land [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	4,370	4,827
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	417	189
Loans and Leases Receivable, Allowance	4,787	5,016	5,836	6,382
Financing Receivable, Collectively Evaluated for Impairment	144,018	135,357
Financing Receivable, Individually Evaluated for Impairment	4,899	2,213
Total loans	148,917	137,570
Residential [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	9,958	9,489
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	1,496	1,403
Loans and Leases Receivable, Allowance	11,454	10,892	10,054	9,286
Financing Receivable, Collectively Evaluated for Impairment	1,881,133	1,890,213
Financing Receivable, Individually Evaluated for Impairment	17,280	15,876
Total loans	1,898,413	1,906,089
Home equity [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	1,146	1,085
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	0	0
Loans and Leases Receivable, Allowance	1,146	1,085	1,543	1,535
Financing Receivable, Collectively Evaluated for Impairment	118,142	123,191
Financing Receivable, Individually Evaluated for Impairment	40	360
Total loans	118,182	123,551
Consumer and other [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	464	540
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	0	0
Loans and Leases Receivable, Allowance	464	540	1,009	1,149
Financing Receivable, Collectively Evaluated for Impairment	141,002	149,250
Financing Receivable, Individually Evaluated for Impairment	0	0
Total loans	141,002	149,250
Unallocated Financing Receivables [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	2,120	2,202
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	0	0
Loans and Leases Receivable, Allowance	2,120	2,202	2,032	1,974
Financing Receivable, Collectively Evaluated for Impairment	0	0
Financing Receivable, Individually Evaluated for Impairment	0	0
Total loans	$ 0	$ 0

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Fair Value Measurements Rollforward of Level 3 Assets (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013		Dec. 31, 2012	Mar. 31, 2012
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	$ 0		$ 0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	0		0
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Loans Receivable, Fair Value Disclosure	4,494	[1]	16,797	4,894	[2]
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Loans Receivable, Fair Value Disclosure	0	[1]		0	[2]
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Loans Receivable, Fair Value Disclosure	0	[1]		0	[2]
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Loans Receivable, Fair Value Disclosure	$ 4,494	[1]		$ 4,894	[2]

[1] (1)Collateral-dependent impaired loans held at March 31, 2013 that had write-downs in fair value or whose specific reserve changed during the first three months of 2013.

[2] (1)Collateral-dependent impaired loans held at March 31, 2012 that had write-downs in fair value or whose specific reserve changed during the first three months of 2012.

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Noncontrolling Interests (Tables)

3 Months Ended

Mar. 31, 2013

Noncontrolling interests redemption values [Abstract]

Redeemable Noncontrolling Interest [Table Text Block]

The following table presents the contractually determined maximum redemption values to repurchase the noncontrolling interests at the periods indicated:

	March 31, 2013		December 31, 2012
	(In thousands)
Anchor	$	11,122	$	11,105
BOS	3,900		5,782
DGHM	2,416		2,400
Total	$	17,438	$	19,287

The following table presents an analysis of the Company’s redeemable noncontrolling interests for the periods indicated:

	Three months ended March 31,
	2013			2012
	(In thousands)
Redeemable noncontrolling interests at beginning of year	$	19,287		$	21,691
Net income attributable to noncontrolling interests	930			793
Distributions	(729		)	(445		)
Adjustments to fair value	(2,050		)	(435		)
Redeemable noncontrolling interests at end of period	$	17,438		$	21,604

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Restructuring (Tables)

3 Months Ended

Mar. 31, 2013

Restructuring [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 months ended March 31, 2013 and 2012.

	Severance Charges			Contract Termination Fees		Professional Expenses			Other Associated Costs			Total
	(In thousands)
Accrued charges at December 31, 2011	$	2,658		$	211	$	230		$	—		$	3,099
Costs incurred	(1		)	—		128			8			135
Costs paid	(459		)	—		(254		)	(8		)	(721		)
Accrued charges at March 31, 2012	$	2,198		$	211	$	104		$	—		$	2,513
Accrued charges at December 31, 2012	$	3,517		$	98	$	8		$	—		$	3,623
Costs incurred	—			—		—			—			—
Costs paid	(736		)	—		(8		)	—			(744		)
Accrued charges at March 31, 2013	$	2,781		$	98	$	—		$	—		$	2,879

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Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013		Mar. 31, 2012
Cash flows from operating activities:
Net income/ (loss) attributable to the Company	$ 13,203	[1]	$ 9,505	[1]
Adjustments to arrive at net income from continuing operations [Abstract]
Net income/ (loss) attributable to noncontrolling interests	930		793
(Income) Before Tax of Discontinued Operations Not Including Gain on Disposal	(3,036)		(2,752)
Discontinued Operation, Tax Effect of Discontinued Operation	1,314		1,198
Net income/(loss) from continuing operations	12,411		8,744
Adjustments to reconcile net income/(loss) from continuing operations to net cash provided by/(used in) operating activities:
Depreciation and amortization	5,203		4,960
Net income/ (loss) attributable to noncontrolling interests	(930)		(793)
Equity issued as compensation	2,278		1,927
Provision for loan losses	0		4,000
Loans originated for sale	(73,290)		(34,218)
Proceeds from sale of loans held for sale	93,335		42,981
Gain on the repurchase of debt	(574)		(879)
Deferred income tax expense/ (benefit)	1,346		674
Net decrease/(increase) in other operating activities	(5,935)		(8,416)
Net cash provided by/(used in) operating activities of continuing operations	33,844		18,980
Net cash provided by/(used in) operating activities of discontinued operations	1,722		1,090
Net cash provided by/(used in) operating activities	35,566		20,070
Investment securities available for sale:
Purchases	(106,697)		(102,353)
Proceeds from Sale of Available-for-sale Securities	1,451		4,359
Maturities, redemptions, and principal payments	64,829		115,079
(Investments)/distributions in trusts, net	(118)		(591)
(Purchase)/ redemption of Federal Home Loan Banks stock	1,545		1,075
Net (increase)/ decrease in portfolio loans	18,112		(201,143)
Proceeds from Recoveries of Loans Previously Charged off	1,122		729
Proceeds from sale of OREO	844		1,176
Proceeds from Sale of Loans Held-for-investment	9,449		0
Capital expenditures	(3,453)		(1,864)
Payments for (Proceeds from) Other Investing Activities	224		0
Net Cash Provided by (Used in) Investing Activities, Continuing Operations	(13,140)		(183,533)
Cash Provided by (Used in) Investing Activities, Discontinued Operations	0		(21)
Net cash provided by/(used in) investing activities	(13,140)		(183,554)
Cash flows from financing activities:
Net increase/ (decrease) in deposits, including deposits held for sale	(373,540)		72,040
Net (decrease)/ increase in securities sold under agreements to repurchase	5,868		(22,240)
Net (decrease)/increase in federal funds purchased	50,000		0
Net (decrease)/increase in short-term Federal Home Loan Bank borrowings	60,000		70,000
Advances of long-term Federal Home Loan Bank borrowings	20,000		15,000
Repayments of long-term Federal Home Loan Bank borrowings	(26,710)		(24,276)
Repurchase of debt	(8,932)		(2,420)
Dividends paid to common stockholders	(4,003)		(776)
Dividends paid to preferred stockholders	(363)		(73)
Repurchase of Warrants	0		(15,000)
Tax deficiency from certain stock compensation awards	(672)		(952)
Proceeds from stock option exercises	1,202		184
Proceeds from issuance of common stock, net	551		557
Distributions paid to noncontrolling interests	(729)		(445)
Other equity adjustments	294		(333)
Net cash provided by/ (used in) financing activities of continuing operations	(277,034)		91,266
Net cash provided by (used in) financing activities of discontinued operations			0
Net cash provided by/(used in) financing activities	(277,034)		91,266
Net increase/(decrease) in cash and cash equivalents	(254,608)		(72,218)
Cash and cash equivalents at beginning of year	308,744		203,354
Cash and cash equivalents at end of period	54,136		131,136
Supplementary schedule of non-cash investing and financing activities:
Cash paid for interest	7,873		11,165
Cash paid for income taxes, net of (refunds received)	2,809		996
Net unrealized gain/ (loss) on securities available for sale	(615)		2
Net unrealized gain/ (loss) on cash flow hedges	207		81
Net unrealized gain/ (loss) on other	(156)		(141)
Loans transferred into other real estate owned from held for sale or portfolio	(477)		0
Loans transferred into/(out of) held for sale from/(to) portfolio	$ 9,097		$ 0

[1] Net income from discontinued operations for the three months ended March 31, 2013, and 2012 of $1.7 million, and $1.6 million, respectively, are included in Holding Company and Eliminations in the calculation of net income attributable to the Company.

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Earnings Per Share Basic Earnings Per Share (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2013		Mar. 31, 2012
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest	$ 12,411		$ 8,744
Net Income (Loss) Attributable to Noncontrolling Interest	930		793
Income (Loss) from Continuing Operations Attributable to Parent	11,481		7,951
Noncontrolling Interest, Change in Redemption Value	(15)	[1]	(86)	[1]
Preferred Stock Dividends and Other Adjustments	(442)		(92)
Other Preferred Stock Dividends and Adjustments	(457)		(178)
Net Income Loss Continuing Available to Common Shareholders Basic Before Participating	11,024		7,773
Undistributed Earnings Continuing Ops Allocated to Participating Securities	(731)		(763)
Net Income (Loss) from Continuing Ops Available to Common Stockholders, Basic	10,293		7,010
Net income from discontinued operations	1,722		1,554
Undistributed Earnings Discontinued Operations Allocated to Participating Securities	(177)		(169)
Net Income from Discontinued Ops Available to Common Stockholders, Basic	1,545		1,385
Net Income (Loss) Available to Common Stockholders Basic before Allocation to Participating Securities	12,746		9,327
Undistributed Earnings Allocated to Participating Securities	(908)		(932)
Net Income (Loss) Available to Common Shareholders, Basic	$ 11,838		$ 8,395
Income (Loss) from Continuing Operations, Per Basic Share	$ 0.13		$ 0.09
Income (Loss) from Discontinued Operations, Net of Tax, Per Basic Share	$ 0.02		$ 0.02
Earnings Per Share, Basic	$ 0.15		$ 0.11
Common Stock [Member]
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Weighted Average Basic Common Shares Outstanding	76,818,610		75,632,980

[1] (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, 2012 for a description of the redemption values related to the redeemable noncontrolling interests. In accordance with the Financial Accounting Standards Board (“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.

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Investments Realized gains and losses from sales of AFS Investments (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Gain (Loss) on Investments [Line Items]
Proceeds from Sale of Available-for-sale Securities	$ 1,451	$ 4,359
Available-for-sale Securities, Gross Realized Gains	10	16
Available-for-sale Securities, Gross Realized Losses	$ 0	$ (3)

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Loan Portfolio and Credit Quality TDR Loans Restructured or Defaulted in Period (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013 Loans		Mar. 31, 2012 Loans
Troubled debt restructurings current quarter [Member]
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Number of Contracts	8		12
Financing Receivable, Modifications, Pre-Modification Recorded Investment	$ 10,729		$ 9,247
Financing Receivable, Modifications, Post-Modification Recorded Investment	10,729		9,247
Troubled debt restructurings current quarter [Member] | Commercial and industrial [Member]
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Number of Contracts	2	[1]	0
Financing Receivable, Modifications, Pre-Modification Recorded Investment	1,219	[1]	0
Financing Receivable, Modifications, Post-Modification Recorded Investment	1,219	[1]	0
Troubled debt restructurings current quarter [Member] | Commercial and industrial [Member] | Extension of Term [Member]
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Number of Contracts
Financing Receivable, Modifications, Post-Modification Recorded Investment
Troubled debt restructurings current quarter [Member] | Commercial and industrial [Member] | Combination of Concessions [Member]
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Number of Contracts
Financing Receivable, Modifications, Post-Modification Recorded Investment
Troubled debt restructurings current quarter [Member] | Commercial real estate [Member]
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Number of Contracts	5	[2]	4	[3]
Financing Receivable, Modifications, Pre-Modification Recorded Investment	9,163	[2]	5,545	[3]
Financing Receivable, Modifications, Post-Modification Recorded Investment	9,163	[2]	5,545	[3]
Troubled debt restructurings current quarter [Member] | Commercial real estate [Member] | Temporary Rate Reduction [Member]
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Number of Contracts
Financing Receivable, Modifications, Post-Modification Recorded Investment
Troubled debt restructurings current quarter [Member] | Construction and land [Member]
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Number of Contracts	1	[4]	0
Financing Receivable, Modifications, Pre-Modification Recorded Investment	347	[4]	0
Financing Receivable, Modifications, Post-Modification Recorded Investment	347	[4]	0
Troubled debt restructurings current quarter [Member] | Residential [Member]
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Number of Contracts	0		8	[5]
Financing Receivable, Modifications, Pre-Modification Recorded Investment	0		3,702	[5]
Financing Receivable, Modifications, Post-Modification Recorded Investment	0		3,702	[5]
Troubled debt restructurings current quarter [Member] | Residential [Member] | Extension of Term [Member]
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Number of Contracts
Financing Receivable, Modifications, Post-Modification Recorded Investment
Troubled debt restructurings current quarter [Member] | Residential [Member] | Temporary Rate Reduction [Member]
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Number of Contracts
Financing Receivable, Modifications, Post-Modification Recorded Investment
Troubled debt restructurings current quarter [Member] | Home equity [Member]
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Number of Contracts	0		0
Financing Receivable, Modifications, Pre-Modification Recorded Investment	0		0
Financing Receivable, Modifications, Post-Modification Recorded Investment	0		0
Troubled debt restructurings current quarter [Member] | Consumer and other [Member]
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Number of Contracts	0		0
Financing Receivable, Modifications, Pre-Modification Recorded Investment	0		0
Financing Receivable, Modifications, Post-Modification Recorded Investment	0		0
Troubled Debt Restructurings Defaulted Current Quarter [Member]
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Subsequent Default, Number of Contracts	1		0
Financing Receivable, Modifications, Subsequent Default, Recorded Investment	561		0
Troubled Debt Restructurings Defaulted Current Quarter [Member] | Commercial and industrial [Member]
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Subsequent Default, Number of Contracts	0		0
Financing Receivable, Modifications, Subsequent Default, Recorded Investment	0		0
Troubled Debt Restructurings Defaulted Current Quarter [Member] | Commercial real estate [Member]
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Subsequent Default, Number of Contracts	1		0
Financing Receivable, Modifications, Subsequent Default, Recorded Investment	561		0
Troubled Debt Restructurings Defaulted Current Quarter [Member] | Construction and land [Member]
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Subsequent Default, Number of Contracts	0		0
Financing Receivable, Modifications, Subsequent Default, Recorded Investment	0		0
Troubled Debt Restructurings Defaulted Current Quarter [Member] | Residential [Member]
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Subsequent Default, Number of Contracts	0		0
Financing Receivable, Modifications, Subsequent Default, Recorded Investment	0		0
Troubled Debt Restructurings Defaulted Current Quarter [Member] | Home equity [Member]
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Subsequent Default, Number of Contracts	0		0
Financing Receivable, Modifications, Subsequent Default, Recorded Investment	0		0
Troubled Debt Restructurings Defaulted Current Quarter [Member] | Consumer and other [Member]
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Subsequent Default, Number of Contracts	0		0
Financing Receivable, Modifications, Subsequent Default, Recorded Investment	0		0
Troubled Debt Restructurings current year [Member] | Commercial and industrial [Member] | Extension of Term [Member]
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Number of Contracts	1
Financing Receivable, Modifications, Post-Modification Recorded Investment	1,000
Troubled Debt Restructurings current year [Member] | Commercial and industrial [Member] | Temporary Rate Reduction [Member]
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Number of Contracts	1
Financing Receivable, Modifications, Post-Modification Recorded Investment	200
Troubled Debt Restructurings current year [Member] | Commercial and industrial [Member] | Combination of Concessions [Member]
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Number of Contracts
Financing Receivable, Modifications, Post-Modification Recorded Investment
Troubled Debt Restructurings current year [Member] | Commercial real estate [Member] | Extension of Term [Member]
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Number of Contracts	4		3
Financing Receivable, Modifications, Post-Modification Recorded Investment	9,000		2,700
Troubled Debt Restructurings current year [Member] | Commercial real estate [Member] | Temporary Rate Reduction [Member]
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Number of Contracts
Financing Receivable, Modifications, Post-Modification Recorded Investment
Troubled Debt Restructurings current year [Member] | Commercial real estate [Member] | Combination of Concessions [Member]
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Number of Contracts	1		1
Financing Receivable, Modifications, Post-Modification Recorded Investment	200		2,800
Troubled Debt Restructurings current year [Member] | Construction and land [Member] | Extension of Term [Member]
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Number of Contracts	1
Financing Receivable, Modifications, Post-Modification Recorded Investment	400
Troubled Debt Restructurings current year [Member] | Residential [Member] | Payment Deferral [Member]
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Number of Contracts			1
Financing Receivable, Modifications, Post-Modification Recorded Investment			1,900
Troubled Debt Restructurings current year [Member] | Residential [Member] | Temporary Rate Reduction [Member]
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Number of Contracts			6
Financing Receivable, Modifications, Post-Modification Recorded Investment			500
Troubled Debt Restructurings current year [Member] | Residential [Member] | Combination of Concessions [Member]
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Number of Contracts			1
Financing Receivable, Modifications, Post-Modification Recorded Investment			$ 1,300

[1] Represents the following concessions: extension of term (1 loan; post-modification recorded investment of $1.0 million); and temporary rate reduction (1 loan; post-modification recorded investment of $0.2 million).

[2] Represents the following concessions: extension of term (4 loans; post-modification recorded investment of $9.0 million); and combination of concessions (1 loan; post-modification recorded investment of $0.2 million).

[3] Represents the following concessions: extension of term (3 loans; post-modification recorded investment of $2.7 million); and combination of concessions (1 loan; post-modification recorded investment of $2.8 million).

[4] Represents the following concessions: extension of term.

[5] Represents the following concessions: payment deferral (1 loan; post-modification recorded investment of $1.9 million); temporary rate reduction (6 loans; post-modification recorded investment of $0.5 million); and combination of concessions (1 loan; post-modification recorded investment of $1.3 million).

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Consolidated Balance Sheets Statement (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Assets:
Cash and cash equivalents	$ 54,136	$ 308,744
Investment securities available for sale (amortized cost of $723,740 and $833,375 at June 30, 2012 and December 31, 2011, respectively)	736,610	699,300
Loans held for sale	289,180	308,390
Total loans	4,783,467	4,814,136
Less: Allowance for loan losses	82,286	84,057
Net loans	4,701,181	4,730,079
Other real estate owned (“OREO”)	2,329	3,616
Stock in Federal Home Loan Banks	40,436	41,981
Premises and equipment, net	29,014	27,081
Goodwill	110,180	110,180
Intangible assets, net	23,813	24,874
Fees receivable	10,452	8,836
Accrued interest receivable	14,774	14,723
Deferred Tax Assets, Net	60,634	62,245
Other assets	123,682	124,956
Total assets	6,196,421	6,465,005
Liabilities:
Deposits	4,517,351	4,885,059
Deposits Held for Sale	188,252	194,084
Securities sold under agreements to repurchase	122,187	116,319
Federal Funds Purchased	50,000	0
Federal Home Loan Bank borrowings	461,411	408,121
Junior subordinated debentures	133,835	143,647
Other liabilities	88,869	95,386
Total liabilities	5,561,905	5,842,616
Redeemable Noncontrolling Interests	17,438	19,287
Preferred stock, $1.00 par value; authorized: 2,000,000 shares;
Series B, issued and outstanding (contingently convertible): 401 shares at June 30, 2012 and December 31, 2011; liquidation value: $100,000 per share	58,089	58,089
Common stock, $1.00 par value; authorized: 170,000,000 shares; issued and outstanding: 78,822,462 shares at June 30, 2012 and 78,023,317 shares at December 31, 2011	79,054	78,744
Additional paid-in capital	641,918	640,891
Accumulated deficit	(163,543)	(176,746)
Accumulated other comprehensive income	1,560	2,124
Total stockholders’ equity	617,078	603,102
Total liabilities, redeemable noncontrolling interests and stockholders’ equity	$ 6,196,421	$ 6,465,005

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Fair Value Measurements Fair Value Nonrecurring Basis (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013		Mar. 31, 2012		Dec. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Number of Real Estate Properties			1
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans Receivable, Fair Value Disclosure	$ 4,494	[1]	$ 4,894	[2]	$ 16,797
Loans Receivable, Fair Value Adjustment	(1,239)		(979)
Other Real Estate Owned, Fair Value Disclosure			198	[3]	379
Other Real Estate Owned, Fair Value Adjustment			(41)
Assets, Fair Value Disclosure	4,494		5,092
Assets, Fair Value Adjustment	(1,239)		(1,020)
Fair Value, Measurements, Nonrecurring [Member] | 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	[1]	0	[2]
Other Real Estate Owned, Fair Value Disclosure			0	[3]
Assets, Fair Value Disclosure	0		0
Fair Value, Measurements, Nonrecurring [Member] | 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	[1]	0	[2]
Other Real Estate Owned, Fair Value Disclosure			0	[3]
Assets, Fair Value Disclosure	0		0
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans Receivable, Fair Value Disclosure	4,494	[1]	4,894	[2]
Other Real Estate Owned, Fair Value Disclosure			198	[3]
Assets, Fair Value Disclosure	$ 4,494		$ 5,092

[1] (1)Collateral-dependent impaired loans held at March 31, 2013 that had write-downs in fair value or whose specific reserve changed during the first three months of 2013.

[2] (1)Collateral-dependent impaired loans held at March 31, 2012 that had write-downs in fair value or whose specific reserve changed during the first three months of 2012.

[3] (2)One OREO property held at March 31, 2012 had a write-down during the first three months of 2012.

XML

Consolidated Statements of Stockholders' Equity (USD $) In Thousands, unless otherwise specified	Total		Common Stock [Member]	Preferred Stock Including Additional Paid in Capital [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]
Beginning Balance at Dec. 31, 2011	$ 566,125		$ 78,023	$ 58,089	$ 656,436	$ (230,017)	$ 3,594
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income/ (loss) attributable to the Company	9,505	[1]	0	0	0	9,505	0
Other comprehensive income/ (loss), net of tax	(58)		0	0	0	0	(58)
Dividends paid to common shareholders	776		0	0	776	0	0
Dividends paid to preferred shareholders	73		0	0	73	0	0
Repurchase of Carlyle warrants and Director's warrants	(15,000)		0	0	(15,000)	0	0
Net proceeds from issuance of:
Shares of common stock	557		99	0	458	0	0
Shares through incentive stock grants, net of cancellations and forfeitures	0		7	0	(7)	0	0
Amortization of stock compensation and employee stock purchase plan	1,927		0	0	1,927	0	0
Stock options exercised	184		23	0	161	0	0
Tax deficiency from certain stock compensation awards	(952)		0	0	(952)	0	0
Other equity adjustments	102		0	0	102	0	0
Ending Balance at Mar. 31, 2012	561,541		78,152	58,089	642,276	(220,512)	3,536
Beginning Balance at Dec. 31, 2012	603,102		78,744	58,089	640,891	(176,746)	2,124
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income/ (loss) attributable to the Company	13,203	[1]	0	0	0	13,203	0
Other comprehensive income/ (loss), net of tax	(564)		0	0	0	0	(564)
Dividends paid to common shareholders	4,003		0	0	4,003	0	0
Dividends paid to preferred shareholders	363		0	0	363	0	0
Net proceeds from issuance of:
Shares of common stock	551		72	0	479	0	0
Shares through incentive stock grants, net of cancellations and forfeitures	0		81	0	(81)	0	0
Amortization of stock compensation and employee stock purchase plan	2,278		0	0	2,278	0	0
Stock options exercised	1,202		157	0	1,045	0	0
Tax deficiency from certain stock compensation awards	(672)		0	0	(672)	0	0
Other equity adjustments	2,344		0	0	2,344	0	0
Ending Balance at Mar. 31, 2013	$ 617,078		$ 79,054	$ 58,089	$ 641,918	$ (163,543)	$ 1,560

[1] Net income from discontinued operations for the three months ended March 31, 2013, and 2012 of $1.7 million, and $1.6 million, respectively, are included in Holding Company and Eliminations in the calculation of net income attributable to the Company.

XML

Derivatives and Hedging Activities Accumulated Other Comprehensive Income Related to Derivatives (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Derivative [Line Items]
Accumulated other comprehensive income on cash flow hedges, balance at beginning of year	$ (2,969)	$ (3,106)
Net change in unrealized gain/ (loss) on cash flow hedges	207	81
Accumulated other comprehensive income on cash flow hedges, balance at end of period	$ (2,762)	$ (3,025)

XML

Earnings Per Share Securities Excluded Due to Exercise Price Exceeding Average Price During Period (Details) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013		Mar. 31, 2012
Shares Excluded Due to Exercise Price Exceeding Average Price During Period [Line Items]
Document Fiscal Year Focus	2013
Shares Excluded Due to Exercise Price Exceeding Average Price During Period	1,627		2,495
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	1,627	[1]	2,495	[1]

[1] (b)Options to purchase shares of common stock, non-participating (performance-based) restricted stock, and other dilutive securities that were outstanding at period ends were not included in the computation of diluted EPS or in the above anti-dilution table because their exercise or conversion prices were greater than the average market price of the common shares during the respective periods.

XML

Noncontrolling Interests Components of Noncontrolling Interests (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012	Mar. 31, 2012	Dec. 31, 2011
Redeemable Noncontrolling Interest [Line Items]
Redeemable Noncontrolling Interests	$ 17,438	$ 19,287	$ 21,604	$ 21,691
Anchor [Member]
Redeemable Noncontrolling Interest [Line Items]
Redeemable Noncontrolling Interests	11,122	11,105
BOS [Member]
Redeemable Noncontrolling Interest [Line Items]
Redeemable Noncontrolling Interests	3,900	5,782
DGHM [Member]
Redeemable Noncontrolling Interest [Line Items]
Redeemable Noncontrolling Interests	$ 2,416	$ 2,400

XML

Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2013

Eps [Abstract]

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

The following tables present the computations of basic and diluted EPS:

	Three months ended March 31,
	2013			2012
(In thousands, except share and per share data)
Basic earnings/ (loss) per share - Numerator:
Net income from continuing operations	$	12,411		$	8,744
Less: Net income attributable to noncontrolling interests	930			793
Net income from continuing operations attributable to the Company	11,481			7,951
Decrease/ (increase) in noncontrolling interests’ redemption values (1)	(15		)	(86		)
Dividends on participating securities	(442		)	(92		)
Total adjustments to income attributable to common shareholders	(457		)	(178		)
Net income from continuing operations attributable to common shareholders, before allocation to participating securities	11,024			7,773
Less: Amount allocated to participating securities	(731		)	(763		)
Net income from continuing operations attributable to common shareholders, after allocation to participating securities	$	10,293		$	7,010
Net income from discontinued operations, before allocation to participating securities	$	1,722		$	1,554
Less: Amount allocated to participating securities	(177		)	(169		)
Net income from discontinued operations, after allocation to participating securities	$	1,545		$	1,385
Net income attributable to common shareholders, before allocation to participating securities	$	12,746		$	9,327
Less: Amount allocated to participating securities	(908		)	(932		)
Net income attributable to common shareholders, after allocation to participating securities	$	11,838		$	8,395
Basic earnings/ (loss) per share - Denominator:
Weighted average basic common shares outstanding	76,818,610			75,632,980
Per share data - Basic earnings/ (loss) per share from:
Continuing operations	$	0.13		$	0.09
Discontinued operations	$	0.02		$	0.02
Total attributable to common shareholders	$	0.15		$	0.11

	Three months ended March 31,
(In thousands, except share and per share data)	2013		2012
(In thousands, except share and per share data)
Diluted earnings/ (loss) per share - Numerator:
Net income from continuing operations attributable to common shareholders, after allocation to participating securities	$	10,293	$	7,010
Add back: income allocated to dilutive securities	—		—
Net income from continuing operations attributable to common shareholders, after allocation to participating securities, after assumed dilution	10,293		7,010
Net income from discontinued operations, after allocation to participating securities	1,545		1,385
Net income attributable to common shareholders, after allocation to participating securities, after assumed dilution	$	11,838	$	8,395
Diluted earnings/ (loss) per share - Denominator:
Weighted average basic common shares outstanding	76,818,610		75,632,980
Dilutive effect of:
Stock options and performance-based restricted stock (2)	561,128		453,626
Warrants to purchase common stock (2)	445,692		346,245
Dilutive common shares	1,006,820		799,871
Weighted average diluted common shares outstanding (2)	77,825,430		76,432,851
Per share data - Diluted earnings/ (loss) per share from:
Continuing operations	$	0.13	$	0.09
Discontinued operations	$	0.02	$	0.02
Total attributable to common shareholders	$	0.15	$	0.11
Dividends per share declared on common stock	$	0.05	$	0.01

_____________________

(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, 2012 for a description of the redemption values related to the redeemable noncontrolling interests. In accordance with the Financial Accounting Standards Board (“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) The diluted EPS computations for the three months ended March 31, 2013 and 2012 do not assume the conversion, exercise, or contingent issuance of the following shares for these 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 March 31,
	2013	2012
Shares excluded due to anti-dilution (treasury method):	(In thousands)
Potential common shares from:
Convertible trust preferred securities (a)	21	1,399
Total shares excluded due to anti-dilution	21	1,399

	Three months ended March 31,
	2013	2012
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, performance-based restricted stock, or other dilutive securities (b)	1,627	2,495
Total shares excluded due to exercise price exceeding the average market price of common shares during the period	1,627	2,495

(a) If the effect of the conversion of the trust preferred securities would have been dilutive, interest expense, net of tax, related to the convertible trust preferred securities of $0.3 million for the three months ended March 31, 2012 would have been added back to net income attributable to common shareholders for diluted EPS computations for the period presented. None would be added back for the three months ended March 31, 2013.

(b) Options to purchase shares of common stock, non-participating (performance-based) restricted stock, and other dilutive securities that were outstanding at period ends were not included in the computation of diluted EPS or in the above anti-dilution table because their exercise or conversion prices were greater than the average market price of the common shares during the respective periods.

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Reportable Segments (Details) (USD $)	3 Months Ended
	Mar. 31, 2013		Mar. 31, 2012		Dec. 31, 2012
Segment Reporting Information [Line Items]
Interest Income (Expense), Net	$ 44,276,000		$ 44,768,000
Noninterest Income	30,596,000		27,454,000
Revenues	74,872,000		72,222,000
Noninterest Expense	56,564,000	[1]	55,627,000	[1]
Income tax expense	5,897,000		3,851,000
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest	12,411,000		8,744,000
Net income/ (loss) attributable to noncontrolling interests	930,000		793,000
Net Income (Loss) Attributable to Parent	13,203,000	[2]	9,505,000	[2]
Amortization of intangibles	1,118,000		1,090,000
Total assets	6,196,421,000		6,148,562,000		6,465,005,000
Assets under Management, Carrying Amount	21,947,000,000	[3]	19,302,000,000	[3]
Depreciation	1,521,000		1,653,000
Restructuring Charges	0		135,000
Net income from discontinued operations	1,722,000		1,554,000
Private Banking Segment [Member]
Segment Reporting Information [Line Items]
Interest Income (Expense), Net	45,369,000		46,441,000
Noninterest Income	9,725,000		7,654,000
Revenues	55,094,000		54,095,000
Noninterest Expense	34,613,000	[1]	35,634,000	[1]
Income tax expense	6,681,000		4,649,000
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest	13,800,000		9,812,000
Net income/ (loss) attributable to noncontrolling interests	0		0
Net Income (Loss) Attributable to Parent	13,800,000	[2]	9,812,000	[2]
Amortization of intangibles	69,000		26,000
Total assets	6,010,107,000		5,939,691,000
Assets under Management, Carrying Amount	4,167,000,000	[3]	3,696,000,000	[3]
Depreciation	1,329,000		1,458,000
Investment Managers Segment [Member]
Segment Reporting Information [Line Items]
Interest Income (Expense), Net	6,000		7,000
Noninterest Income	10,096,000		9,484,000
Revenues	10,102,000		9,491,000
Noninterest Expense	7,745,000		7,644,000
Income tax expense	773,000		618,000
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest	1,584,000		1,229,000
Net income/ (loss) attributable to noncontrolling interests	466,000		395,000
Net Income (Loss) Attributable to Parent	1,118,000	[2]	834,000	[2]
Amortization of intangibles	800,000		800,000
Total assets	102,205,000		105,640,000
Assets under Management, Carrying Amount	9,314,000,000	[3]	8,047,000,000	[3]
Depreciation	52,000		62,000
Wealth Advisors Segment [Member]
Segment Reporting Information [Line Items]
Interest Income (Expense), Net	20,000	[4]	7,000	[4]
Noninterest Income	10,066,000	[4]	9,237,000	[4]
Revenues	10,086,000	[4]	9,244,000	[4]
Noninterest Expense	7,576,000	[4]	6,727,000	[4]
Income tax expense	877,000	[4]	924,000	[4]
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest	1,633,000	[4]	1,593,000	[4]
Net income/ (loss) attributable to noncontrolling interests	464,000	[4]	398,000	[4]
Net Income (Loss) Attributable to Parent	1,169,000	[2],[4]	1,195,000	[2],[4]
Amortization of intangibles	249,000	[4]	264,000	[4]
Total assets	66,466,000	[4]	66,880,000	[4]
Assets under Management, Carrying Amount	8,487,000,000	[3],[4]	7,579,000,000	[3],[4]
Depreciation	88,000	[4]	88,000	[4]
Reportable Segment [Member]
Segment Reporting Information [Line Items]
Interest Income (Expense), Net	45,395,000		46,455,000
Noninterest Income	29,887,000		26,375,000
Revenues	75,282,000		72,830,000
Noninterest Expense	49,934,000	[1]	50,005,000	[1]
Income tax expense	8,331,000		6,191,000
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest	17,017,000		12,634,000
Net income/ (loss) attributable to noncontrolling interests	930,000		793,000
Net Income (Loss) Attributable to Parent	16,087,000	[2]	11,841,000	[2]
Amortization of intangibles	1,118,000		1,090,000
Total assets	6,178,778,000		6,112,211,000
Assets under Management, Carrying Amount	21,968,000,000	[3]	19,322,000,000	[3]
Depreciation	1,469,000		1,608,000
Holding Company and Eliminations Segment [Domain]
Segment Reporting Information [Line Items]
Interest Income (Expense), Net	(1,119,000)		(1,687,000)
Noninterest Income	709,000		1,079,000
Revenues	(410,000)		(608,000)
Noninterest Expense	6,630,000	[1]	5,622,000	[1]
Income tax expense	(2,434,000)		(2,340,000)
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest	(4,606,000)		(3,890,000)
Net income/ (loss) attributable to noncontrolling interests	0		0
Net Income (Loss) Attributable to Parent	(2,884,000)	[2]	(2,336,000)	[2]
Amortization of intangibles	0		0
Total assets	17,643,000		36,351,000
Assets under Management, Carrying Amount	(21,000,000)	[3]	(20,000,000)	[3]
Depreciation	$ 52,000		$ 45,000

[1] Non-interest expense for the three months ended March 31, 2013 includes no restructuring expense. Non-interest expense for the three months ended March 31, 2012 includes $0.1 million of restructuring expense. Restructuring expenses were incurred in the Private Banking segment as well as at the Holding Company.

[2] Net income from discontinued operations for the three months ended March 31, 2013, and 2012 of $1.7 million, and $1.6 million, respectively, are included in Holding Company and Eliminations in the calculation of net income attributable to the Company.

[3] AUM” represents Assets Under Management and Advisory at the affiliates. AUM at DTC have been removed since DTC operations are classified with discontinued operations

[4] In the second quarter of 2012, the Company sold its Wealth Advisory affiliate, DTC. Accordingly, prior period results for DTC have been reclassified into discontinued operations and are included with Holding Company and Eliminations in the tables above.

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Investments (Tables)

3 Months Ended

Mar. 31, 2013

Investments [Abstract]

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

The following table presents a summary of investment securities:

	Amortized Cost		Unrealized					Fair Value
			Gains		Losses
	(In thousands)
As of March 31, 2013
Available for sale securities at fair value:
U.S. government and agencies	$	2,455	$	—	$	(41	)	$	2,414
Government-sponsored entities	199,381		872		—			200,253
Municipal bonds	204,955		2,930		(231		)	207,654
Mortgage-backed securities (1)	310,495		5,016		(1,095		)	314,416
Other	11,703		177		(7		)	11,873
Total	$	728,989	$	8,995	$	(1,374	)	$	736,610
As of December 31, 2012
Available for sale securities at fair value:
U.S. government and agencies	$	2,781	$	—	$	(28	)	$	2,753
Government-sponsored entities	154,058		962		(18		)	155,002
Municipal bonds	207,952		3,172		(140		)	210,984
Mortgage-backed securities (1)	313,239		5,597		(909		)	317,927
Other	12,526		120		(12		)	12,634
Total	$	690,556	$	9,851	$	(1,107	)	$	699,300

___________________

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

Investments Classified by Contractual Maturity Date [Table Text Block]

The following table presents the maturities of investment securities available for sale, based on contractual maturity, as of March 31, 2013. 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	$	59,431	$	59,895
After one, but within five years	279,380		281,892
After five, but within ten years	81,641		82,714
Greater than ten years	308,537		312,109
Total	$	728,989	$	736,610

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

The following table presents the proceeds from sales, gross realized gains and gross realized losses for securities available for sale that were sold during the following periods:

	Three months ended March 31,
	2013		2012
	(In thousands)
Proceeds from sales	$	1,451	$	4,359
Realized gains	10		16
Realized losses	—		(3		)

Schedule of Unrealized Loss on Investments [Table Text Block]

The following tables presents information regarding securities as of March 31, 2013 and December 31, 2012 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.

As of March 31, 2013	Less than 12 months					12 months or longer					Total
	Fair value		Unrealized losses			Fair value		Unrealized losses			Fair value		Unrealized losses			# of securities
Available for sale securities	(In thousands)
U.S. government and agencies	$	1,216	$	(33	)	$	1,198	$	(8	)	$	2,414	$	(41	)	2
Government-sponsored entities	—		—			—		—			—		—			—
Municipal bonds	26,436		(231		)	—		—			26,436		(231		)	19
Mortgage-backed securities	131,081		(1,072		)	2,371		(23		)	133,452		(1,095		)	20
Other	56		(2		)	36		(5		)	92		(7		)	9
Total	$	158,789	$	(1,338	)	$	3,605	$	(36	)	$	162,394	$	(1,374	)	50

As of December 31, 2012	Less than 12 months					12 months or longer					Total
	Fair value		Unrealized losses			Fair value		Unrealized losses			Fair value		Unrealized losses			# of securities
Available for sale securities	(In thousands)
U.S. government and agencies	$	1,472	$	(26	)	$	1,281	$	(2	)	$	2,753	$	(28	)	2
Government-sponsored entities	19,982		(18		)	—		—			19,982		(18		)	2
Municipal bonds	20,102		(140		)	—		—			20,102		(140		)	13
Mortgage-backed securities	101,280		(891		)	2,701		(18		)	103,981		(909		)	17
Other	112		(11		)	12		(1		)	124		(12		)	12
Total	$	142,948	$	(1,086	)	$	3,994	$	(21	)	$	146,942	$	(1,107	)	46

XML

Restructuring (Details) (USD $)	3 Months Ended		27 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Mar. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Cost Incurred to Date			$ 14,000,000
Restructuring Reserve	2,879,000	2,513,000	2,879,000	3,623,000	3,099,000
Restructuring and Related Cost, Incurred Cost	0	135,000
Restructuring Reserve, Settled with Cash	(744,000)	(721,000)
Employee Severance [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Expected Cost			0
Restructuring Reserve	2,781,000	2,198,000	2,781,000	3,517,000	2,658,000
Restructuring and Related Cost, Incurred Cost	0	(1,000)
Restructuring Reserve, Settled with Cash	(736,000)	(459,000)
Contract Termination [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	98,000	211,000	98,000	98,000	211,000
Restructuring and Related Cost, Incurred Cost	0	0
Restructuring Reserve, Settled with Cash	0	0
Professional Fees [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	0	104,000	0	8,000	230,000
Restructuring and Related Cost, Incurred Cost	0	128,000
Restructuring Reserve, Settled with Cash	(8,000)	(254,000)
Other Expense [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	0	0	0	0	0
Restructuring and Related Cost, Incurred Cost	0	8,000
Restructuring Reserve, Settled with Cash	0	(8,000)
Private Banking Segment [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Cost Incurred to Date			9,500,000
Holding Company and Eliminations Segment [Domain]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Cost Incurred to Date			4,500,000
Senior Executive Restructuring Plan 2012 [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Cost Incurred to Date			$ 4,800,000

XML

Consolidated Statements of Stockholders' Equity Parentheticals (USD $)	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Shares of common stock issued	71,891	98,500
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures	81,418	6,609
Common Stock, Dividends, Per Share, Cash Paid	$ 0.05	$ 0.01

XML

Consolidated Balance Sheets Parentheticals (USD $) In Thousands, except Share data, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Investment securities available for sale at amortized cost	$ 728,989	$ 690,556
Preferred Stock, Par or Stated Value Per Share	$ 1.00	$ 1.00
Preferred Stock, Shares Authorized	2,000,000	2,000,000
Series B Preferred stock shares issued	401	401
Series B Preferred stock shares outstanding	401	401
Series B Preferred stock liquidation value per share	$ 100,000	$ 100,000
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	79,053,668	78,743,518
Common Stock, Shares, Outstanding	79,053,668	78,743,518

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Income Taxes

3 Months Ended

Mar. 31, 2013

Income Taxes [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:

	Three months ended March 31,
	2013			2012
	(In thousands)
Income from continuing operations:
Income before income taxes	$	18,308		$	12,595
Income tax expense	5,897			3,851
Net income from continuing operations	$	12,411		$	8,744
Effective tax rate, continuing operations	32.2		%	30.6		%
Income from discontinued operations:
Income before income taxes	$	3,036		$	2,752
Income tax expense	1,314			1,198
Net income from discontinued operations	$	1,722		$	1,554
Effective tax rate, discontinued operations	43.3		%	43.5		%
Income attributable to noncontrolling interests:
Income before income taxes	$	930		$	793
Income tax expense	—			—
Net income attributable to noncontrolling interests	$	930		$	793
Effective tax rate, noncontrolling interests	—		%	—		%
Income attributable to the Company
Income before income taxes	$	20,414		$	14,554
Income tax expense	7,211			5,049
Net income attributable to the Company	$	13,203		$	9,505
Effective tax rate attributable to the Company	35.3		%	34.7		%

The effective tax rate for continuing operations for the three months ended March 31, 2013 of 32.2%, with related tax expense of $5.9 million, was calculated based on a projected 2013 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 three months ended March 31, 2012 of 30.6%, with related tax expense of $3.9 million, was calculated based on a projected 2012 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 three months ended March 31, 2013 is greater than the effective tax rate for the same period in 2012 due primarily to earnings from tax-exempt investments, income tax credits, and income attributable to noncontrolling interests having a smaller impact on the effective tax rate, due primarily to the higher level of income before taxes in 2013 compared to 2012.

Contingent consideration related to the 2009 divestiture of certain affiliates, primarily related to the revenue sharing agreement with Westfield Capital Management Company, LLC, is also reflected under “discontinued operations” in the table above. The profits and losses attributable to owners other than the Company are reflected under “noncontrolling interests” in the table above.

XML

Document and Entity Information Document (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	May 03, 2013	Dec. 31, 2012
Document Information [Line Items]
Available-for-sale Securities, Amortized Cost Basis	$ 728,989		$ 690,556
Entity Registrant Name	BOSTON PRIVATE FINANCIAL HOLDINGS INC
Entity Central Index Key	0000821127
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		79,063,544
Preferred Stock, Par or Stated Value Per Share	$ 1.00		$ 1.00
Preferred Stock, Shares Authorized	2,000,000		2,000,000
Preferred Stock, Shares Issued	401		401
Preferred Stock, Shares Outstanding	401		401
Preferred Stock, Liquidation Preference Per Share	$ 100,000		$ 100,000
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	79,053,668		78,743,518

XML

Noncontrolling Interests

3 Months Ended

Mar. 31, 2013

Nci [Abstract]

Noncontrolling Interest Disclosure [Text Block]

Noncontrolling Interests

At the Company, noncontrolling interests typically 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 $0.9 million and $0.8 million for the three months ended March 31, 2013 and 2012, 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 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 total shareholders’ equity. The Company had no noncontrolling interests included in shareholder’s equity at March 31, 2013 and December 31, 2012. However, 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 of $17.4 million and $19.3 million at March 31, 2013 and December 31, 2012, respectively. The aggregate amount of such redeemable noncontrolling equity interests are recorded at the estimated maximum redemption values.

Each 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, 2012.

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 the contractually determined maximum redemption values to repurchase the noncontrolling interests at the periods indicated:

	March 31, 2013		December 31, 2012
	(In thousands)
Anchor	$	11,122	$	11,105
BOS	3,900		5,782
DGHM	2,416		2,400
Total	$	17,438	$	19,287

The following table presents an analysis of the Company’s redeemable noncontrolling interests for the periods indicated:

	Three months ended March 31,
	2013			2012
	(In thousands)
Redeemable noncontrolling interests at beginning of year	$	19,287		$	21,691
Net income attributable to noncontrolling interests	930			793
Distributions	(729		)	(445		)
Adjustments to fair value	(2,050		)	(435		)
Redeemable noncontrolling interests at end of period	$	17,438		$	21,604

XML

Consolidated Statements of Operations (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2013		Mar. 31, 2012
Interest and dividend income:
Loans	$ 49,350		$ 51,946
Taxable investment securities	514		1,256
Non-taxable investment securities	839		848
Mortgage-backed securities	1,402		1,603
Federal funds sold and other	176		149
Total interest and dividend income	52,281		55,802
Interest expense:
Deposits	3,786		4,903
Federal Home Loan Bank borrowings	2,831		3,945
Junior subordinated debentures	1,154		1,752
Repurchase agreements and other short-term borrowings	234		434
Total interest expense	8,005		11,034
Net interest income	44,276		44,768
Provision/ (Credit) for loan losses	0		4,000
Net interest income/(loss) after provision for loan losses	44,276		40,768
Fees and other income:
Investment management and trust fees	16,868		15,238
Wealth advisory fees	10,068		9,236
Other banking fee income	1,798		1,367
Gain on repurchase of debt	574		879
Gain on sale of investments, net	10		13
Gain on sale of loans, net	1,187		421
Gain/(loss) on OREO, net	34		(41)
Other	57		341
Total fees and other income	30,596		27,454
Operating expense:
Salaries and employee benefits	37,449		36,912
Occupancy and equipment	7,503		7,265
Professional services	2,661		2,939
Marketing and business development	1,457		1,329
Contract services and data processing	1,568		1,188
Amortization of intangibles	1,118		1,090
FDIC insurance	1,040		849
Restructuring expense	0		135
Other	3,768		3,920
Total operating expense	56,564	[1]	55,627	[1]
Income/(loss) before income taxes	18,308		12,595
Income tax expense	5,897		3,851
Net income/(loss) from continuing operations	12,411		8,744
Net income from discontinued operations	1,722		1,554
Net income/ (loss) before attrubution to noncontrolling interests	14,133		10,298
Net income/ (loss) attributable to noncontrolling interests	930		793
Net income/ (loss) attributable to the Company	13,203	[2]	9,505	[2]
Adjustments to net income/(loss) attributable to the Company to arrive at net income/(loss) attributable to common shareholders	(1,365)		(1,110)
Net Income (Loss) Available to Common Shareholders, Basic	$ 11,838		$ 8,395
Basic earnings/(loss) per share attributable to common shareholders:
From continuing operations:	$ 0.13		$ 0.09
From discontinued operations:	$ 0.02		$ 0.02
Total attributable to common shareholders:	$ 0.15		$ 0.11
Diluted earnings/(loss) per share attributable to common shareholders:
From continuing operations:	$ 0.13		$ 0.09
From discontinued operations:	$ 0.02		$ 0.02
Total attributable to common shareholders:	$ 0.15		$ 0.11
Common Stock [Member]
Basic earnings/(loss) per share attributable to common shareholders:
Weighted Average Basic Common Shares Outstanding	76,818,610		75,632,980
Diluted earnings/(loss) per share attributable to common shareholders:
Weighted average diluted common shares outstanding	77,825,430	[3]	76,432,851	[3]

[1] Non-interest expense for the three months ended March 31, 2013 includes no restructuring expense. Non-interest expense for the three months ended March 31, 2012 includes $0.1 million of restructuring expense. Restructuring expenses were incurred in the Private Banking segment as well as at the Holding Company.

[2] Net income from discontinued operations for the three months ended March 31, 2013, and 2012 of $1.7 million, and $1.6 million, respectively, are included in Holding Company and Eliminations in the calculation of net income attributable to the Company.

[3] The diluted EPS computations for the three months ended March 31, 2013 and 2012 do not assume the conversion, exercise, or contingent issuance of the following shares for these 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 March 31, 2013 2012Shares excluded due to anti-dilution (treasury method):(In thousands)Potential common shares from: Convertible trust preferred securities (a)21 1,399Total shares excluded due to anti-dilution21 1,399 Three months ended March 31, 2013 2012Shares 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, performance-based restricted stock, or other dilutive securities (b)1,627 2,495Total shares excluded due to exercise price exceeding the average market price of common shares during the period1,627 2,495(a) If the effect of the conversion of the trust preferred securities would have been dilutive, interest expense, net of tax, related to the convertible trust preferred securities of $0.3 million for the three months ended March 31, 2012 would have been added back to net income attributable to common shareholders for diluted EPS computations for the period presented. None would be added back for the three months ended March 31, 2013.(b)Options to purchase shares of common stock, non-participating (performance-based) restricted stock, and other dilutive securities that were outstanding at period ends were not included in the computation of diluted EPS or in the above anti-dilution table because their exercise or conversion prices were greater than the average market price of the common shares during the respective periods.

XML

Investments

3 Months Ended

Mar. 31, 2013

Investments [Abstract]

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

Investments

The following table presents a summary of investment securities:

	Amortized Cost		Unrealized					Fair Value
			Gains		Losses
	(In thousands)
As of March 31, 2013
Available for sale securities at fair value:
U.S. government and agencies	$	2,455	$	—	$	(41	)	$	2,414
Government-sponsored entities	199,381		872		—			200,253
Municipal bonds	204,955		2,930		(231		)	207,654
Mortgage-backed securities (1)	310,495		5,016		(1,095		)	314,416
Other	11,703		177		(7		)	11,873
Total	$	728,989	$	8,995	$	(1,374	)	$	736,610
As of December 31, 2012
Available for sale securities at fair value:
U.S. government and agencies	$	2,781	$	—	$	(28	)	$	2,753
Government-sponsored entities	154,058		962		(18		)	155,002
Municipal bonds	207,952		3,172		(140		)	210,984
Mortgage-backed securities (1)	313,239		5,597		(909		)	317,927
Other	12,526		120		(12		)	12,634
Total	$	690,556	$	9,851	$	(1,107	)	$	699,300

___________________

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

The following table presents the maturities of investment securities available for sale, based on contractual maturity, as of March 31, 2013. 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	$	59,431	$	59,895
After one, but within five years	279,380		281,892
After five, but within ten years	81,641		82,714
Greater than ten years	308,537		312,109
Total	$	728,989	$	736,610

The following table presents the proceeds from sales, gross realized gains and gross realized losses for securities available for sale that were sold during the following periods:

	Three months ended March 31,
	2013		2012
	(In thousands)
Proceeds from sales	$	1,451	$	4,359
Realized gains	10		16
Realized losses	—		(3		)

The following tables presents information regarding securities as of March 31, 2013 and December 31, 2012 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.

As of March 31, 2013	Less than 12 months					12 months or longer					Total
	Fair value		Unrealized losses			Fair value		Unrealized losses			Fair value		Unrealized losses			# of securities
Available for sale securities	(In thousands)
U.S. government and agencies	$	1,216	$	(33	)	$	1,198	$	(8	)	$	2,414	$	(41	)	2
Government-sponsored entities	—		—			—		—			—		—			—
Municipal bonds	26,436		(231		)	—		—			26,436		(231		)	19
Mortgage-backed securities	131,081		(1,072		)	2,371		(23		)	133,452		(1,095		)	20
Other	56		(2		)	36		(5		)	92		(7		)	9
Total	$	158,789	$	(1,338	)	$	3,605	$	(36	)	$	162,394	$	(1,374	)	50

As of December 31, 2012	Less than 12 months					12 months or longer					Total
	Fair value		Unrealized losses			Fair value		Unrealized losses			Fair value		Unrealized losses			# of securities
Available for sale securities	(In thousands)
U.S. government and agencies	$	1,472	$	(26	)	$	1,281	$	(2	)	$	2,753	$	(28	)	2
Government-sponsored entities	19,982		(18		)	—		—			19,982		(18		)	2
Municipal bonds	20,102		(140		)	—		—			20,102		(140		)	13
Mortgage-backed securities	101,280		(891		)	2,701		(18		)	103,981		(909		)	17
Other	112		(11		)	12		(1		)	124		(12		)	12
Total	$	142,948	$	(1,086	)	$	3,994	$	(21	)	$	146,942	$	(1,107	)	46

The U.S. government and agencies securities and mortgage-backed securities in the table above as of March 31, 2013 had a Standard and Poor’s credit rating of AA+. The municipal bonds in the table above had Moody’s credit ratings of at least Aa3 or Standard and Poor’s credit ratings of A+. The other securities consisted of equity securities.

As of March 31, 2013, the amount of investment securities in an unrealized loss position greater than 12 months as well as in total was not significant and was primarily due to movements in interest rates. The Company has no intent to sell any securities in an unrealized loss position as of March 31, 2013 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 March 31, 2013. There were $0.1 million of cost method investments with unrealized losses at December 31, 2012. The Company invests primarily in 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 $22.5 million and $24.9 million in cost method investments included in other assets as of March 31, 2013 and December 31, 2012, respectively.

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Reportable Segments

3 Months Ended

Mar. 31, 2013

Segments [Abstract]

Segment Reporting Disclosure [Text Block]

Reportable segments

Management Reporting

The Company has three reportable segments (Private Banking, Investment Management, and Wealth Advisory) and the Parent Company (Boston Private Financial Holdings, Inc.) (the “Holding Company”). The financial performance of the Company is managed and evaluated by these three 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, 2012.

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

Reconciliation of Reportable Segment Items

The following tables present a reconciliation of the revenues, profits, assets, and other significant items of reportable segments as of and for the three months ended March 31, 2013 and 2012. Interest expense on junior subordinated debentures is reported at the Holding Company.

	Three months ended March 31,
	Net interest income						Non-interest income				Total revenues
	2013			2012			2013		2012		2013			2012
	(In thousands)
Total Bank	$	45,369		$	46,441		$	9,725	$	7,654	$	55,094		$	54,095
Total Investment Managers	6			7			10,096		9,484		10,102			9,491
Total Wealth Advisors (1)	20			7			10,066		9,237		10,086			9,244
Total Segments	45,395			46,455			29,887		26,375		75,282			72,830
Holding Company and Eliminations	(1,119		)	(1,687		)	709		1,079		(410		)	(608		)
Total Company	$	44,276		$	44,768		$	30,596	$	27,454	$	74,872		$	72,222

	Three months ended March 31,
	Non-interest expense (2)				Income tax expense						Net income from continuing operations
	2013		2012		2013			2012			2013			2012
	(In thousands)
Total Bank	$	34,613	$	35,634	$	6,681		$	4,649		$	13,800		$	9,812
Total Investment Managers	7,745		7,644		773			618			1,584			1,229
Total Wealth Advisors (1)	7,576		6,727		877			924			1,633			1,593
Total Segments	49,934		50,005		8,331			6,191			17,017			12,634
Holding Company and Eliminations	6,630		5,622		(2,434		)	(2,340		)	(4,606		)	(3,890		)
Total Company	$	56,564	$	55,627	$	5,897		$	3,851		$	12,411		$	8,744

	Three months ended March 31,
	Net income attributable to noncontrolling interests				Net income attributable to the Company (3)						Amortization of intangibles
	2013		2012		2013			2012			2013		2012
	(In thousands)
Total Bank	$	—	$	—	$	13,800		$	9,812		$	69	$	26
Total Investment Managers	466		395		1,118			834			800		800
Total Wealth Advisors (1)	464		398		1,169			1,195			249		264
Total Segments	930		793		16,087			11,841			1,118		1,090
Holding Company and Eliminations	—		—		(2,884		)	(2,336		)	—		—
Total Company	$	930	$	793	$	13,203		$	9,505		$	1,118	$	1,090

	As of March 31,										Three months ended March 31,
	Assets				AUM (4)						Depreciation
	2013		2012		2013			2012			2013		2012
	(In thousands)				(In millions)						(In thousands)
Total Bank	$	6,010,107	$	5,939,691	$	4,167		$	3,696		$	1,329	$	1,458
Total Investment Managers	102,205		105,640		9,314			8,047			52		62
Total Wealth Advisors (1)	66,466		66,880		8,487			7,579			88		88
Total Segments	6,178,778		6,112,211		21,968			19,322			1,469		1,608
Holding Company and Eliminations	17,643		36,351		(21		)	(20		)	52		45
Total Company	$	6,196,421	$	6,148,562	$	21,947		$	19,302		$	1,521	$	1,653

___________________

(1) In the second quarter of 2012, the Company sold its Wealth Advisory affiliate, DTC. Accordingly, prior period results for DTC have been reclassified into discontinued operations and are included with Holding Company and Eliminations in the tables above.

(2) Non-interest expense for the three months ended March 31, 2013 includes no restructuring expense. Non-interest expense for the three months ended March 31, 2012 includes $0.1 million of restructuring expense. Restructuring expenses were incurred in the Private Banking segment as well as at the Holding Company.

(3) Net income from discontinued operations for the three months ended March 31, 2013, and 2012 of $1.7 million, and $1.6 million, respectively, are included in Holding Company and Eliminations in the calculation of net income attributable to the Company.

(4) “AUM” represents Assets Under Management and Advisory at the affiliates. AUM at DTC have been removed since DTC operations are classified with discontinued operations.

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Reportable Segments (Tables)

3 Months Ended

Mar. 31, 2013

Segments [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 months ended March 31, 2013 and 2012. Interest expense on junior subordinated debentures is reported at the Holding Company.

	Three months ended March 31,
	Net interest income						Non-interest income				Total revenues
	2013			2012			2013		2012		2013			2012
	(In thousands)
Total Bank	$	45,369		$	46,441		$	9,725	$	7,654	$	55,094		$	54,095
Total Investment Managers	6			7			10,096		9,484		10,102			9,491
Total Wealth Advisors (1)	20			7			10,066		9,237		10,086			9,244
Total Segments	45,395			46,455			29,887		26,375		75,282			72,830
Holding Company and Eliminations	(1,119		)	(1,687		)	709		1,079		(410		)	(608		)
Total Company	$	44,276		$	44,768		$	30,596	$	27,454	$	74,872		$	72,222

	Three months ended March 31,
	Non-interest expense (2)				Income tax expense						Net income from continuing operations
	2013		2012		2013			2012			2013			2012
	(In thousands)
Total Bank	$	34,613	$	35,634	$	6,681		$	4,649		$	13,800		$	9,812
Total Investment Managers	7,745		7,644		773			618			1,584			1,229
Total Wealth Advisors (1)	7,576		6,727		877			924			1,633			1,593
Total Segments	49,934		50,005		8,331			6,191			17,017			12,634
Holding Company and Eliminations	6,630		5,622		(2,434		)	(2,340		)	(4,606		)	(3,890		)
Total Company	$	56,564	$	55,627	$	5,897		$	3,851		$	12,411		$	8,744

	Three months ended March 31,
	Net income attributable to noncontrolling interests				Net income attributable to the Company (3)						Amortization of intangibles
	2013		2012		2013			2012			2013		2012
	(In thousands)
Total Bank	$	—	$	—	$	13,800		$	9,812		$	69	$	26
Total Investment Managers	466		395		1,118			834			800		800
Total Wealth Advisors (1)	464		398		1,169			1,195			249		264
Total Segments	930		793		16,087			11,841			1,118		1,090
Holding Company and Eliminations	—		—		(2,884		)	(2,336		)	—		—
Total Company	$	930	$	793	$	13,203		$	9,505		$	1,118	$	1,090

	As of March 31,										Three months ended March 31,
	Assets				AUM (4)						Depreciation
	2013		2012		2013			2012			2013		2012
	(In thousands)				(In millions)						(In thousands)
Total Bank	$	6,010,107	$	5,939,691	$	4,167		$	3,696		$	1,329	$	1,458
Total Investment Managers	102,205		105,640		9,314			8,047			52		62
Total Wealth Advisors (1)	66,466		66,880		8,487			7,579			88		88
Total Segments	6,178,778		6,112,211		21,968			19,322			1,469		1,608
Holding Company and Eliminations	17,643		36,351		(21		)	(20		)	52		45
Total Company	$	6,196,421	$	6,148,562	$	21,947		$	19,302		$	1,521	$	1,653

___________________

(1) In the second quarter of 2012, the Company sold its Wealth Advisory affiliate, DTC. Accordingly, prior period results for DTC have been reclassified into discontinued operations and are included with Holding Company and Eliminations in the tables above.

(2) Non-interest expense for the three months ended March 31, 2013 includes no restructuring expense. Non-interest expense for the three months ended March 31, 2012 includes $0.1 million of restructuring expense. Restructuring expenses were incurred in the Private Banking segment as well as at the Holding Company.

(3) Net income from discontinued operations for the three months ended March 31, 2013, and 2012 of $1.7 million, and $1.6 million, respectively, are included in Holding Company and Eliminations in the calculation of net income attributable to the Company.

(4) “AUM” represents Assets Under Management and Advisory at the affiliates. AUM at DTC have been removed since DTC operations are classified with discontinued operations.

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Restructuring

3 Months Ended

Mar. 31, 2013

Restructuring [Abstract]

Restructuring and Related Activities Disclosure [Text Block]

Restructuring

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

During the second half of 2012, the Company implemented a senior executive restructuring of the Holding Company leadership and Bank management. The purpose of this restructuring was to create a more streamlined organization and to refine the Company’s cost base. To implement the new structure the Company incurred an additional severance charge of $4.8 million. The Company expects no additional severance charges associated with this initiative.

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

The following table presents a summary of the restructuring activity for the three months ended March 31, 2013 and 2012.

	Severance Charges			Contract Termination Fees		Professional Expenses			Other Associated Costs			Total
	(In thousands)
Accrued charges at December 31, 2011	$	2,658		$	211	$	230		$	—		$	3,099
Costs incurred	(1		)	—		128			8			135
Costs paid	(459		)	—		(254		)	(8		)	(721		)
Accrued charges at March 31, 2012	$	2,198		$	211	$	104		$	—		$	2,513
Accrued charges at December 31, 2012	$	3,517		$	98	$	8		$	—		$	3,623
Costs incurred	—			—		—			—			—
Costs paid	(736		)	—		(8		)	—			(744		)
Accrued charges at March 31, 2013	$	2,781		$	98	$	—		$	—		$	2,879

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Allowance for Loan Losses

3 Months Ended

Mar. 31, 2013

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 $82.3 million and $84.1 million at March 31, 2013 and December 31, 2012, 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 March 31,
	2013			2012
	(In thousands)
Allowance for loan losses, beginning of period:
Commercial and industrial	$	11,825		$	12,163
Commercial real estate	52,497			63,625
Construction and land	5,016			6,382
Residential	10,892			9,286
Home equity	1,085			1,535
Consumer and other	540			1,149
Unallocated	2,202			1,974
Total allowance for loan losses, beginning of period	84,057			96,114
Provision/ (credit) for loan losses:
Commercial and industrial	(114		)	1,827
Commercial real estate	(919		)	2,030
Construction and land	(1,036		)	(712		)
Residential	1,827			966
Home equity	398			(53		)
Consumer and other	(74		)	(116		)
Unallocated	(82		)	58
Total provision/ (credit) for loan losses	—			4,000
Loans charged-off:
Commercial and industrial	$	(27	)	$	(2,311	)
Commercial real estate	(1,239		)	(406		)
Construction and land	—			—
Residential	(1,265		)	(198		)
Home equity	(360		)	—
Consumer and other	(2		)	(26		)
Total charge-offs	(2,893		)	(2,941		)
Recoveries on loans previously charged-off:
Commercial and industrial	165			383
Commercial real estate	127			117
Construction and land	807			166
Residential	—			—
Home equity	23			61
Consumer and other	—			2
Total recoveries	1,122			729

	As of and for the three months ended March 31,
	2013		2012
	(In thousands)
Allowance for loan losses at end of period:
Commercial and industrial	11,849		12,062
Commercial real estate	50,466		65,366
Construction and land	4,787		5,836
Residential	11,454		10,054
Home equity	1,146		1,543
Consumer and other	464		1,009
Unallocated	2,120		2,032
Total allowance for loan losses at end of period	$	82,286	$	97,902

The following tables present the Company’s allowance for loan losses and loan portfolio at March 31, 2013 and December 31, 2012 by portfolio segment, disaggregated by method of impairment analysis. The Company had no loans acquired with deteriorated credit quality at March 31, 2013 or December 31, 2012.

	Commercial and industrial		Commercial real estate		Construction and land		Residential
	(In thousands)
Allowance for loan losses balance at March 31, 2013 attributable to:
Loans collectively evaluated	$	11,480	$	48,020	$	4,370	$	9,958
Loans individually evaluated	369		2,446		417		1,496
Total allowance for loan losses	$	11,849	$	50,466	$	4,787	$	11,454
Recorded investment (loan balance) at March 31, 2013:
Loans collectively evaluated	$	777,408	$	1,624,618	$	144,018	$	1,881,133
Loans individually evaluated	11,104		63,823		4,899		17,280
Total Loans	$	788,512	$	1,688,441	$	148,917	$	1,898,413

	Home equity		Consumer and other		Unallocated		Total
(Continued from above)	(In thousands)
Allowance for loan losses balance at March 31, 2013 attributable to:
Loans collectively evaluated	$	1,146	$	464	$	2,120	$	77,558
Loans individually evaluated	—		—		—		4,728
Total allowance for loan losses	$	1,146	$	464	$	2,120	$	82,286
Recorded investment (loan balance) at March 31, 2013:
Loans collectively evaluated	$	118,142	$	141,002	$	—	$	4,686,321
Loans individually evaluated	40		—		—		97,146
Total Loans	$	118,182	$	141,002	$	—	$	4,783,467

	Commercial and industrial		Commercial real estate		Construction and land		Residential
	(In thousands)
Allowance for loan losses balance at December 31, 2012 attributable to:
Loans collectively evaluated	$	11,707	$	50,830	$	4,827	$	9,489
Loans individually evaluated	118		1,667		189		1,403
Total allowance for loan losses	$	11,825	$	52,497	$	5,016	$	10,892
Recorded investment (loan balance) at December 31, 2012:
Loans collectively evaluated	$	801,903	$	1,632,698	$	135,357	$	1,890,213
Loans individually evaluated	4,423		58,652		2,213		15,876
Total Loans	$	806,326	$	1,691,350	$	137,570	$	1,906,089

	Home equity		Consumer and other		Unallocated		Total
(Continued from above)	(In thousands)
Allowance for loan losses balance at December 31, 2012 attributable to:
Loans collectively evaluated	$	1,085	$	540	$	2,202	$	80,680
Loans individually evaluated	—		—		—		3,377
Total allowance for loan losses	$	1,085	$	540	$	2,202	$	84,057
Recorded investment (loan balance) at December 31, 2012:
Loans collectively evaluated	$	123,191	$	149,250	$	—	$	4,732,612
Loans individually evaluated	360		—		—		81,524
Total Loans	$	123,551	$	149,250	$	—	$	4,814,136

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Derivatives and Hedging Activities Derivatives not designated as hedges, effect on statement of operations (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Derivative Instruments, Gain (Loss) [Line Items]
Description of Location of Gain (Loss) on Interest Rate Derivative on Income Statement	Other income/ expense
Description of Location of Gain (Loss) on Foreign Currency Derivative 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	$ (2)	$ 81
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	(4)	81
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net	$ 2	$ 0

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Fair Value Measurements

3 Months Ended

Mar. 31, 2013

Fair Value [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 March 31, 2013 and December 31, 2012, aggregated by the level in the fair value hierarchy within which those measurements fall:

	As of March 31, 2013		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	$	2,414	$	—	$	2,414	$	—
Government-sponsored entities	200,253		—		200,253		—
Municipal bonds	207,654		—		207,654		—
Mortgage-backed securities	314,416		—		314,416		—
Other	11,873		11,873		—		—
Total available for sale securities	736,610		11,873		724,737		—
Derivatives - interest rate customer swaps	2,664		—		2,664		—
Derivatives - customer foreign exchange forwards	216		—		216		—
Other investments	6,010		5,324		686		—
Liabilities:
Derivatives - interest rate customer swaps	$	2,746	$	—	$	2,746	$	—
Derivatives - customer foreign exchange forwards	216		—		216		—
Derivatives - junior subordinated debenture interest rate swap	4,750		—		4,750		—

			Fair value measurements at reporting date using:
	As of December 31, 2012		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	$	2,753	$	—	$	2,753	$	—
Government-sponsored entities	155,002		—		155,002		—
Municipal bonds	210,984		—		210,984		—
Mortgage-backed securities	317,927		—		317,927		—
Other	12,634		12,634		—		—
Total available for sale securities	699,300		12,634		686,666		—
Derivatives - interest rate customer swaps	2,915		—		2,915		—
Derivatives - customer foreign exchange forwards	120		—		120		—
Other investments	5,892		5,206		686		—
Liabilities:
Derivatives - interest rate customer swaps	$	3,047	$	—	$	3,047	$	—
Derivatives - customer foreign exchange forwards	120		—		120		—
Derivatives - junior subordinated debenture interest rate swap	5,189		—		5,189		—

As of March 31, 2013 and December 31, 2012, available for sale securities consisted primarily of U.S. government and agencies securities, government-sponsored entities securities, municipal bonds, mortgage-backed securities, and other available for sale securities. The equities (which are categorized as other available for sale securities) are valued with prices quoted in active markets. Therefore, they have been categorized as a Level 1 measurement. The government-sponsored entities securities, municipal bonds, mortgage-backed securities, and certain investments in Small Business Administration (“SBA”) loans (which are categorized as U.S. government and agencies securities) generally have quoted prices but are traded less frequently than exchange-traded securities and can be priced using market data from similar assets. Therefore, they have been categorized as a Level 2 measurement. No investments held at March 31, 2013 or December 31, 2012 were categorized as Level 3.

The Company uses interest rate customer swaps and a junior subordinated debenture interest rate swap to manage its interest rate risk, and customer foreign exchange forward contracts to manage its foreign exchange risk. 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. Therefore, they have been categorized as a Level 2 measurement as of March 31, 2013 and December 31, 2012. 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 the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, although the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. 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 March 31, 2013 and December 31, 2012.

Other investments, which are not considered available for sale investments, consist of deferred compensation trusts for the benefit of certain current or former employees, which 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 March 31, 2013 and December 31, 2012. The remaining other investments categorized as Level 2 consist of the Company’s cost-method investments as of March 31, 2013 and December 31, 2012.

There were no Level 3 assets at March 31, 2013 or December 31, 2012.

The following tables present the Company’s assets and liabilities measured at fair value on a non-recurring basis during the periods ended March 31, 2013 and 2012, respectively, aggregated by the level in the fair value hierarchy within which those measurements fall.

	As of March 31, 2013		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 March 31, 2013
	(In thousands)
Assets:
Impaired loans (1)	$	4,494	$	—	$	—	$	4,494	$	(1,239	)
	$	4,494	$	—	$	—	$	4,494	$	(1,239	)

___________________

(1) Collateral-dependent impaired loans held at March 31, 2013 that had write-downs in fair value or whose specific reserve changed during the first three months of 2013.

	As of March 31, 2012		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 March 31, 2012
	(In thousands)
Assets:
Impaired loans (1)	$	4,894	$	—	$	—	$	4,894	$	(979	)
OREO (2)	198		—		—		198		(41		)
	$	5,092	$	—	$	—	$	5,092	$	(1,020	)

________________

(1) Collateral-dependent impaired loans held at March 31, 2012 that had write-downs in fair value or whose specific reserve changed during the first three months of 2012.

(2) One OREO property held at March 31, 2012 had a write-down during the first three months of 2012.

The following table presents 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.

	March 31, 2013
	Fair Value		Valuation technique	Unobservable Input	Range of Inputs Utilized	Weighted Average of Inputs Utilized
	(In thousands)
Impaired Loans	$	4,494	Appraisals of Collateral	Discount for costs to sell	0% - 12%	7%
				Appraisal adjustments	0% - 25%	17%

	December 31, 2012
	Fair Value		Valuation technique	Unobservable Input	Range of Inputs Utilized	Weighted Average of Inputs Utilized
	(In thousands)
Impaired Loans	$	16,797	Appraisals of Collateral	Discount for costs to sell	6% - 13%	8%
				Appraisal adjustments	0% - 59%	23%
OREO	$	379	Appraisals of Collateral	Discount for costs to sell	8%	8%
				Appraisal adjustments	8%	8%

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 OREO in the tables above includes those properties that had an adjustment to fair value during the the three months ended March 31, 2013 and 2012. The Company uses appraisals as a basis for determining fair value, which management may adjust to reflect estimated fair value declines, or may 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 (other than certain loans, as noted below):

	March 31, 2013
	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	$	54,136	$	54,136	$	54,136	$	—	$	—
Loans, net	4,701,181		4,716,548		—		—		4,716,548
Loans held for sale	289,180		289,180		—		289,180		—
Other financial assets	118,004		118,004		—		118,004		—
FINANCIAL LIABILITIES:
Deposits	4,517,351		4,523,775		—		4,523,775		—
Deposits held for sale	188,252		177,107		—		177,107		—
Securities sold under agreements to repurchase	122,187		123,463		—		123,463		—
Federal Funds purchased	50,000		50,000		—		50,000		—
Federal Home Loan Bank borrowings	461,411		480,402		—		480,402		—
Junior subordinated debentures	133,835		108,573		—		3,875		104,698
Other financial liabilities	9,998		9,998		—		9,998		—

	December 31, 2012
	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	$	308,744	$	308,744	$	308,744	$	—	$	—
Loans, net	4,730,079		4,766,574		—		—		4,766,574
Loans held for sale	308,390		308,908		—		308,908		—
Other financial assets	118,087		118,087		—		118,087		—
FINANCIAL LIABILITIES:
Deposits	4,885,059		4,891,465		—		4,891,465		—
Deposits held for sale	194,084		182,592		—		182,592		—
Securities sold under agreements to repurchase	116,319		117,885		—		117,885		—
Federal Funds purchased	—		—		—		—		—
Federal Home Loan Bank borrowings	408,121		428,037		—		428,037		—
Junior subordinated debentures	143,647		117,502		—		12,804		104,698
Other financial liabilities	10,058		10,058		—		10,058		—

The estimated fair values have been determined by using available quoted market information or other appropriate valuation methodologies. The aggregate fair value amounts presented do not represent the underlying value of the Company taken as a whole.

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 therefore cannot be determined with precision. Changes made to any of the underlying assumptions could significantly affect the estimates.

Cash and cash equivalents

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

Loans, net

Fair value estimates are based on loans with similar financial characteristics. Fair values of commercial and residential mortgage loans are estimated by discounting contractual cash flows adjusted for prepayment estimates and using discount rates approximately equal to current market rates on loans with similar credit and interest rate characteristics and maturities. The fair value estimates for home equity and other loans are based on outstanding loan terms and pricing in the local markets. The method of estimating the fair value of the loans disclosed in the table above does not incorporate the exit price concept in the presentation of the fair value of these financial instruments. Net loans are included in the Level 3 fair value category based upon the inputs and valuation techniques used.

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. In December 2012, the Bank entered into an agreement to sell its three offices in the Pacific Northwest market. The loans related to this transaction were transferred from the loan portfolio to loans held for sale. The fair value indicated for these loans held for sale was based on the agreed upon offer in the pending transaction. Accordingly, loans held for sale are included in the Level 2 fair value category.

Other financial assets

Other financial assets consist of accrued interest and fees receivable, stock in Federal Home Loan Banks (“FHLBs”), and the cash surrender value of bank-owned life insurance, 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 sheets 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.

Deposits held for sale

Deposits held for sale are recorded at the lower of cost or fair value. All of the deposits held for sale at March 31, 2013 and December 31, 2012 relate to the Pacific Northwest transaction. Fair value estimates are based on actual agreed upon price and premium per the agreement. Accordingly, deposits held for sale are included in the Level 2 fair value category.

Securities sold under agreements to repurchase

The fair value of securities sold under agreements to repurchase are 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 amount of federal funds purchased approximates fair value due to their short-term nature and 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 have been classified as Level 2.

Junior subordinated debentures

The fair value of the junior subordinated debentures issued by Boston Private Capital Trust I was based on the current market price of the securities at March 31, 2013 and December 31, 2012 and have been classified as Level 2. The fair value of the junior subordinated debentures issued by Boston Private Capital Trust II and the junior subordinated debentures acquired in the acquisitions of First Private Bank & Trust, Gibraltar Private Bank and Trust Company (Gibraltar Private Bank and Trust Company was subsequently sold in 2009), and Charter Private Bank was estimated using Level 3 inputs such as the interest rates on these securities and current rates for similar debt, a consideration for illiquidity of trading in the debt, and pending regulatory changes that would result in an unfavorable change in the regulatory capital treatment of this type of debt.

During the year ended December 31, 2012, the classification of the inputs used in the valuation technique for the junior subordinated debentures, other than those issued by Boston Private Capital Trust I, were changed from Level 2 to Level 3. This change was the result of a new valuation model used primarily due to the pending changes affecting the regulatory capital treatment of junior subordinated debentures and the impact in the capital markets on new issuances of these types of securities. The Board of Governors of the Federal Reserve System (the “Federal Reserve”) proposed rules in 2012 that will begin to implement the standards set forth by the Basel Committee on Banking Supervision in December 2010 and known as Basel III which apply to capital and liquidity. Such rules would eliminate the current favorable treatment that junior subordinated debentures receive in the calculation of regulatory capital which, when combined with the current low interest rate environment and the illiquidity of this type of instrument to the holder, significantly reduces observable market data for similar debt.

Other financial liabilities

Other financial liabilities consist of accrued interest payable and deferred compensation for which the carrying amount approximates fair value and are 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.

XML

Loan Portfolio and Credit Quality

3 Months Ended

Mar. 31, 2013

Loans Receivable [Abstract]

Financing Receivables [Text Block]

Loan Portfolio and Credit Quality

The Bank’s lending activities are conducted principally in New England, San Francisco Bay, Southern California, and the Pacific Northwest. In December 2012, the Bank entered into an agreement to sell its three offices in the Pacific Northwest market, and therefore the loans that will be included in the Pacific Northwest transaction are classified as held for sale and are not included in the data below.

The Bank originates single and multi-family residential loans, commercial real estate loans, commercial and industrial 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, San Francisco Bay, and Southern California economies and real estate markets.

Total loans include deferred loan fees/ (costs), net, of ($3.6) million and ($4.2) million as of March 31, 2013 and December 31, 2012, respectively. Deferred loan fees/ (costs) include unamortized premiums or discounts related to mortgage loans purchased by the Bank.

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

	March 31, 2013		December 31, 2012
	(In thousands)
Commercial and industrial	$	788,512	$	806,326
Commercial real estate	1,688,441		1,691,350
Construction and land	148,917		137,570
Residential	1,898,413		1,906,089
Home equity	118,182		123,551
Consumer and other	141,002		149,250
Total Loans	$	4,783,467	$	4,814,136

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

	March 31, 2013		December 31, 2012
	(In thousands)
Commercial and industrial	$	10,071	$	4,337
Commercial real estate	46,295		41,696
Construction and land	4,552		2,213
Residential	11,759		11,744
Home equity	340		660
Consumer and other	9		95
Total	$	73,026	$	60,745

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 less than $0.1 million of loans 90 days or more past due, but still accruing, as of March 31, 2013 and $3.6 million as of December 31, 2012. 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 under the restructured loan terms, along with meeting other criteria.

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

	March 31, 2013
	Accruing Past Due								Nonaccrual Loans
	30-59 Days Past Due (1)		60-89 Days Past Due		90+ Days Past Due		Total Accruing Past Due		Current Payment Status		30-89 Days Past Due		90+ Days Past Due		Total Non-Accrual Loans		Current Accruing Loans		Total Loans Receivable
	(In thousands)
Commercial and industrial	$	825	$	2,625	$	—	$	3,450	$	1,210	$	28	$	8,833	$	10,071	$	774,991	$	788,512
Commercial real estate	1,478		241		—		1,719		26,489		5,968		13,838		46,295		1,640,427		1,688,441
Construction and land	36		276		50		362		715		38		3,799		4,552		144,003		148,917
Residential	11,243		282		—		11,525		2,236		3,039		6,484		11,759		1,875,129		1,898,413
Home equity	31		175		—		206		300		—		40		340		117,636		118,182
Consumer and other	37		55		—		92		5		1		3		9		140,901		141,002
Total	$	13,650	$	3,654	$	50	$	17,354	$	30,955	$	9,074	$	32,997	$	73,026	$	4,693,087	$	4,783,467

___________________

(1) Does not include one commercial and industrial 30-59 day delinquent loan totaling $0.1 million in loans held for sale as of March 31, 2013.

	December 31, 2012
	Accruing Past Due								Nonaccrual Loans
	30-59 Days Past Due (1)		60-89 Days Past Due		90+ Days Past Due		Total Accruing Past Due		Current Payment Status		30-89 Days Past Due		90+ Days Past Due		Total Non-Accrual Loans		Current Accruing Loans		Total Loans Receivable
	(In thousands)
Commercial and industrial	$	10,684	$	210	$	257	$	11,151	$	3,073	$	—	$	1,264	$	4,337	$	790,838	$	806,326
Commercial real estate	3,331		4,572		3,249		11,152		29,125		8,913		3,658		41,696		1,638,502		1,691,350
Construction and land	42		3,216		50		3,308		723		137		1,353		2,213		132,049		137,570
Residential	20,194		3,218		—		23,412		5,101		1,980		4,663		11,744		1,870,933		1,906,089
Home equity	119		39		—		158		300		—		360		660		122,733		123,551
Consumer and other	569		182		—		751		93		—		2		95		148,404		149,250
Total	$	34,939	$	11,437	$	3,556	$	49,932	$	38,415	$	11,030	$	11,300	$	60,745	$	4,703,459	$	4,814,136

___________________

(1) Does not include one commercial and industrial 30-59 day delinquent loan totaling $0.3 million in loans held for sale as of December 31, 2012.

Nonaccruing and delinquent loans are affected by factors, including economic and business conditions, such as interest rates and unemployment levels, and real estate collateral values, among others. In periods of prolonged economic declines, borrowers may become more severely impacted 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 not be renewed.

Generally when a collateral dependent commercial loan becomes impaired, an updated appraisal of the collateral, if appropriate, is obtained. In limited circumstances, an updated appraisal is obtained on residential and home equity loans that are classified as impaired. If the impaired loan has not been upgraded to a performing status within a reasonable amount of time, the Bank continues to obtain newer appraisals, approximately every 12 to 18 months or sooner, if deemed necessary, especially during periods of declining 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.

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, 2012 follows:

Acceptable or Pass - All loans graded as acceptable or pass are considered acceptable credit quality by the Bank and are grouped for purposes of calculating the allowance for loan losses. Only commercial loans, including commercial real estate, commercial and industrial loans, and construction and land loans are given a numerical grade. For residential, home equity and consumer loans, the Bank classifies loans as acceptable or pass unless there is known information such as delinquency or client requests for modifications which would then generally result in a risk rating such as substandard 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 are classified as impaired.

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

	March 31, 2013
	By Loan Grade or Nonaccrual Status
	Pass		Special Mention (1)		Accruing Substandard		Nonaccrual Loans		Total
	(In thousands)
Commercial and industrial	$	763,443	$	5,890	$	9,108	$	10,071	$	788,512
Commercial real estate	1,541,944		52,024		48,178		46,295		1,688,441
Construction and land	122,964		17,265		4,136		4,552		148,917
Residential	1,874,391		—		12,263		11,759		1,898,413
Home equity	116,169		—		1,673		340		118,182
Consumer and other	140,993		—		—		9		141,002
Total	$	4,559,904	$	75,179	$	75,358	$	73,026	$	4,783,467

___________________

(1) Does not include three commercial and industrial special mention loans totaling $0.8 million and three commercial real estate special mention loans totaling $3.0 million in loans held for sale as of March 31, 2013.

	December 31, 2012
	By Loan Grade or Nonaccrual Status
	Pass		Special Mention (1)		Accruing Substandard		Nonaccrual Loans		Total
	(In thousands)
Commercial and industrial	$	779,236	$	13,691	$	9,062	$	4,337	$	806,326
Commercial real estate	1,531,701		54,000		63,953		41,696		1,691,350
Construction and land	110,940		17,048		7,369		2,213		137,570
Residential	1,886,273		—		8,072		11,744		1,906,089
Home equity	121,218		—		1,673		660		123,551
Consumer and other	149,155		—		—		95		149,250
Total	$	4,578,523	$	84,739	$	90,129	$	60,745	$	4,814,136

___________________

(1) Does not include five commercial and industrial special mention loans totaling $0.9 million and three commercial real estate special mention loans totaling $3.0 million in loans held for sale as of December 31, 2012.

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 months ended March 31, 2013
	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	$	7,859	$	9,043	n/a		$	7,251	$	81
Commercial real estate	39,348		58,523		n/a		39,835		101
Construction and land	934		1,547		n/a		2,633		91
Residential	6,696		8,164		n/a		3,427		29
Home equity	40		40		n/a		280		1
Consumer and other	—		—		n/a		—		—
Subtotal	54,877		77,317		n/a		53,426		303
With an allowance recorded:
Commercial and industrial	3,245		3,310		$	369	1,676		4
Commercial real estate	24,475		25,957		2,446		20,702		112
Construction and land	3,965		4,046		417		1,637		—
Residential	10,584		10,843		1,496		13,633		112
Home equity	—		—		—		—		—
Consumer and other	—		—		—		—		—
Subtotal	42,269		44,156		4,728		37,648		228
Total:
Commercial and industrial	11,104		12,353		369		8,927		85
Commercial real estate	63,823		84,480		2,446		60,537		213
Construction and land	4,899		5,593		417		4,270		91
Residential	17,280		19,007		1,496		17,060		141
Home equity	40		40		—		280		1
Consumer and other	—		—		—		—		—
Total	$	97,146	$	121,473	$	4,728	$	91,074	$	531

___________________

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

	As of and for the three months ended March 31, 2012
	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	$	6,538	$	9,264	n/a		$	5,855	$	—
Commercial real estate	29,964		44,809		n/a		33,543		104
Construction and land	6,087		10,360		n/a		6,294		97
Residential	9,572		10,542		n/a		10,232		81
Home equity	360		360		n/a		342		1
Consumer and other	—		—		n/a		—		—
Subtotal	52,521		75,335		n/a		56,266		283
With an allowance recorded:
Commercial and industrial	1,081		1,109		$	113	1,101		—
Commercial real estate	28,121		29,624		3,245		24,586		173
Construction and land	1,194		1,224		313		1,234		—
Residential	13,757		13,757		868		8,295		63
Home equity	131		131		131		131		2
Consumer and other	—		—		—		—		—
Subtotal	44,284		45,845		4,670		35,347		238
Total:
Commercial and industrial	7,619		10,373		113		6,956		—
Commercial real estate	58,085		74,433		3,245		58,129		277
Construction and land	7,281		11,584		313		7,528		97
Residential	23,329		24,299		868		18,527		144
Home equity	491		491		131		473		3
Consumer and other	—		—		—		—		—
Total	$	96,805	$	121,180	$	4,670	$	91,613	$	521

___________________

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

	As of and for the year ended December 31, 2012
	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	$	3,274	$	4,499	n/a		$	4,707	$	—
Commercial real estate	40,133		64,424		n/a		31,736		283
Construction and land	1,310		2,682		n/a		5,532		97
Residential	2,337		2,594		n/a		8,885		312
Home equity	360		360		n/a		355		3
Consumer and other	—		—		n/a		40		—
Subtotal	47,414		74,559		n/a		51,255		695
With an allowance recorded:
Commercial and industrial	1,149		1,191		$	118	1,855		1
Commercial real estate	18,519		19,814		1,667		24,510		727
Construction and land	903		953		189		1,486		—
Residential	13,539		13,798		1,403		11,781		374
Home equity	—		—		—		114		5
Consumer and other	—		—		—		—		—
Subtotal	34,110		35,756		3,377		39,746		1,107
Total:
Commercial and industrial	4,423		5,690		118		6,562		1
Commercial real estate	58,652		84,238		1,667		56,246		1,010
Construction and land	2,213		3,635		189		7,018		97
Residential	15,876		16,392		1,403		20,666		686
Home equity	360		360		—		469		8
Consumer and other	—		—		—		40		—
Total	$	81,524	$	110,315	$	3,377	$	91,001	$	1,802

___________________

(1) Recorded investment represents the client loan balance net of historical charge-offs and historical nonaccrual interest paid, 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 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 reserve allocations 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 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 have experienced financial difficulty. Such loans are classified as TDRs and are included in impaired loans. TDRs typically result from the Company’s loss mitigation activities which, among other things, could include rate reductions, payment extensions, and principal forgiveness. TDRs totaled $61.2 million and $54.5 million at March 31, 2013 and December 31, 2012, respectively. Of the $61.2 million in TDRs at March 31, 2013, $29.9 million were on accrual status. Of the $54.5 million in TDRs at December 31, 2012, $26.7 million were on accrual status.

Since all TDRs 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 reserve on the loan based on loan type. 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 considered impaired. Therefore, there is generally not a material change to the allowance for loan losses when a loan is categorized as a TDR.

The following tables present the balance of TDRs that were restructured or defaulted during the periods indicated:

	As of and for the three months ended March 31, 2013
	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)	2	$	1,219	$	1,219	—	$	—
Commercial real estate (2)	5	9,163		9,163		1	561
Construction and land (3)	1	347		347		—	—
Residential	—	—		—		—	—
Home equity	—	—		—		—	—
Consumer and other	—	—		—		—	—
Total	8	$	10,729	$	10,729	1	$	561

___________________

(1) Represents the following concessions: extension of term (1 loan; post-modification recorded investment of $1.0 million); and temporary rate reduction (1 loan; post-modification recorded investment of $0.2 million).

(2) Represents the following concessions: extension of term (4 loans; post-modification recorded investment of $9.0 million); and combination of concessions (1 loan; post-modification recorded investment of $0.2 million).

(3) Represents the following concessions: extension of term.

	As of and for the three months ended March 31, 2012
	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	—	$	—	$	—	—	$	—
Commercial real estate (1)	4	5,545		5,545		—	—
Construction and land	—	—		—		—	—
Residential (2)	8	3,702		3,702		—	—
Home equity	—	—		—		—	—
Consumer and other	—	—		—		—	—
Total	12	$	9,247	$	9,247	—	$	—

___________________

(1) Represents the following concessions: extension of term (3 loans; post-modification recorded investment of $2.7 million); and combination of concessions (1 loan; post-modification recorded investment of $2.8 million).

(2) Represents the following concessions: payment deferral (1 loan; post-modification recorded investment of $1.9 million); temporary rate reduction (6 loans; post-modification recorded investment of $0.5 million); and combination of concessions (1 loan; post-modification recorded investment of $1.3 million).

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Derivatives and Hedging Activities

3 Months Ended

Mar. 31, 2013

Derivatives [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 fixed and variable rate loan assets and fixed and variable rate borrowings.

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 March 31, 2013 and December 31, 2012.

	March 31, 2013							December 31, 2012
	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	$	—	Other liabilities	$	(4,750	)	Other assets	$	—	Other liabilities	$	(5,189	)
Derivatives not designated as hedging instruments:
Interest rate products	Other assets	2,664		Other liabilities	(2,746		)	Other assets	2,915		Other liabilities	(3,047		)
Foreign exchange contracts	Other assets	216		Other liabilities	(216		)	Other assets	120		Other liabilities	(120		)
Total		$	2,880		$	(7,712	)		$	3,035		$	(8,356	)

___________________

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

The following table presents the effect of the Company’s derivative financial instruments in the consolidated statements of operations for the three months ended March 31, 2013 and 2012.

Derivatives in cash flow hedging relationships	Amount of gain or (loss) recognized in OCI on derivative (effective portion)						Location of gain or (loss) reclassified from accumulated OCI into income (effective portion)	Amount of gain or (loss) reclassified from accumulated OCI into income (effective portion)
	three months ended March 31,							three months ended March 31,
	2013			2012				2013			2012
(In thousands)
Interest rate products	$	(22	)	$	(277	)	Interest income	$	(461	)	$	(416	)
Total	$	(22	)	$	(277	)		$	(461	)	$	(416	)

The following table presents the components of the Company’s accumulated other comprehensive income/ (loss) related to the derivatives for the three months ended March 31, 2013 and 2012.

	Three months ended March 31,
	2013			2012
	(In thousands)
Accumulated other comprehensive income on cash flow hedges, balance at beginning of period	$	(2,969	)	$	(3,106	)
Net change in unrealized gain/ (loss) on cash flow hedges	207			81
Accumulated other comprehensive income on cash flow hedges, balance at end of period	$	(2,762	)	$	(3,025	)

Cash Flow Hedges of Interest Rate Risk

The Company’s objective in using derivatives is to add stability to interest income and expense and to manage the risk related to exposure to changes in interest rates. To accomplish this objective, the Holding Company entered into an interest rate swap in the second quarter of 2010 with a notional amount of $75 million related to the Holding Company’s cash outflows associated with the subordinated debt related to trust preferred securities to protect against an increase in the London Interbank Offered Rate (“LIBOR”). The interest rate swap had an effective date of December 30, 2010 and a term of five years. As of December 30, 2010, the subordinated debt switched from a fixed rate of 6.25% to a variable rate of three-month LIBOR plus 1.68%. The interest rate swap effectively fixed the Holding Company’s interest rate payments on the $75 million of debt at 4.45%.

The Company uses 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 assesses 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 is 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 is recorded as a gain or loss in the consolidated statement of operations as part of fees and other income. The Holding Company had no hedge ineffectiveness recognized in earnings during the three months ended March 31, 2013 and 2012. The Holding Company also monitors the risk of counterparty default on an ongoing basis.

A portion of the balance reported in accumulated other comprehensive income related to derivatives will be reclassified to interest income or expense as interest payments are made or received on the Holding Company’s interest rate swap. During the next twelve months, the Holding Company estimates that $1.8 million will be reclassified as an increase in interest expense.

Non-designated Hedges

Derivatives not designated as hedges are not speculative and result from two 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. Fees earned in connection with the execution of derivatives related to this program are recognized in the consolidated statement of operations in other income. The derivative asset and liability values above include an adjustment related to the consideration of credit risk required under ASC 820, of less than ($0.1) million and $0.1 million in earnings for the three months ended March 31, 2013 and 2012. As of March 31, 2013 and December 31, 2012, the Bank had eight and 11 interest rate swaps with an aggregate notional amount of $52.1 million and $55.7 million, respectively, related to this program. As of March 31, 2013 and December 31, 2012, the Bank also had 14 and six, respectively, foreign currency exchange contracts with notional amounts of $10.7 million and $3.7 million, respectively, related to this program.

The following table presents the effect of the Company’s derivative financial instruments, not designated as hedging instruments, in the consolidated statement of operations for the three months ended March 31, 2013 and 2012.

Derivatives Not Designated as Hedging Instruments	Location of Gain or (Loss) Recognized in Income on Derivative	Amount of Gain or (Loss), Net, Recognized in Income on Derivative Three Months Ended March 31,
		2013			2012
		(In thousands)
Interest rate products	Other income/ expense	$	(4	)	$	81
Foreign exchange contracts	Other income/ expense	2			—
Total		$	(2	)	$	81

The Holding Company and the Bank have agreements with their derivative counterparties that contain provisions where, if the Holding Company or Bank defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Holding Company or the Bank could also be declared in default on its derivative obligations. The Holding Company and the Bank were in compliance with these provisions as of March 31, 2013 and December 31, 2012.

The Holding Company and the Bank also have agreements with certain of their derivative counterparties that contain provisions where, if the Holding Company or Bank fails to maintain its status as a well- or adequately-capitalized institution, then the counterparty could terminate the derivative positions and the Holding Company or the Bank would be required to settle its obligations under the agreements. The Holding Company and the Bank were in compliance with these provisions as of March 31, 2013 and December 31, 2012.

Certain of the Holding Company and the Bank’s agreements with their derivative counterparties contain provisions where if specified events or conditions occur that materially change the Holding Company’s or the Bank’s creditworthiness in an adverse manner, the Holding Company or the Bank may be required to fully collateralize their obligations under the derivative instruments. The Holding Company and the Bank were in compliance with these provisions as of March 31, 2013 and December 31, 2012.

As of March 31, 2013 and December 31, 2012, the termination amounts related to collateral determinations of derivatives in a liability position was $7.6 million and $8.4 million, respectively. The Company has minimum collateral posting thresholds with its derivative counterparty and has posted collateral of $10.4 million as of March 31, 2013 and December 31, 2012, against its obligation under this agreement.

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Income Taxes Income Taxes Discussion (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Income Taxes [Abstract]
Effective Income Tax Rate, Continuing Operations	32.20%	30.60%
Income tax expense	$ 5,897	$ 3,851
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate	35.00%	35.00%

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Noncontrolling Interests Redeemable Noncontrolilng Interests Rollforward (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Redeemable Noncontrolling Interest [Line Items]
Income (Loss) Attributable to Noncontrolling Interest	$ 930	$ 793
Redeemable noncontrolling interests at beginning of year	19,287	21,691
Net income/ (loss) attributable to noncontrolling interests	930	793
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders	(729)	(445)
Noncontrolling Interest, adjustment to fair value	(2,050)	(435)
Redeemable noncontrolling interests at end of period	$ 17,438	$ 21,604

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Income Taxes (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013		Mar. 31, 2012
Income Tax Expense Components [Line Items]
Income/ (loss) before income taxes	$ 18,308		$ 12,595
Income tax expense	5,897		3,851
Net income/(loss) from continuing operations	12,411		8,744
Effective Income Tax Rate, Continuing Operations	32.20%		30.60%
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax	3,036		2,752
Discontinued Operation, Tax Effect of Discontinued Operation	1,314		1,198
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest	1,722		1,554
Effective Tax Rate Discontinued Operations	43.30%		43.50%
Income (Loss) Attributable to Noncontrolling Interest	930		793
Tax Effect Attributable to Noncontrolling Interests	0		0
Net income/ (loss) attributable to noncontrolling interests	930		793
Effective Tax Rate Noncontrolling Interests	0.00%		0.00%
Income from Continuing and Discontinued Operations Attributable to Parent Before Tax	20,414		14,554
Tax Expense (Benefit) Total	7,211		5,049
Net income/ (loss) attributable to the Company	$ 13,203	[1]	$ 9,505	[1]
Effective Tax Rate Total	35.30%		34.70%

[1] Net income from discontinued operations for the three months ended March 31, 2013, and 2012 of $1.7 million, and $1.6 million, respectively, are included in Holding Company and Eliminations in the calculation of net income attributable to the Company.

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Earnings Per Share Antidilutive Securities (Details) (USD $) Share data in Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013		Mar. 31, 2012
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Document Fiscal Year Focus	2013
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	21		1,399
Expense Related to Antidilutive Securities that Would Have Been Added Back to Income if Securities Were Dilutive	$ 0		$ 300,000
Convertible Debt Securities [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	21	[1]	1,399	[1]

[1] (a) If the effect of the conversion of the trust preferred securities would have been dilutive, interest expense, net of tax, related to the convertible trust preferred securities of $0.3 million for the three months ended March 31, 2012 would have been added back to net income attributable to common shareholders for diluted EPS computations for the period presented.

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Loan Portfolio and Credit Quality Loans by Grade or Nonaccrual Status (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013		Dec. 31, 2012
Financing Receivable, Recorded Investment [Line Items]
Loans held for sale	$ 289,180		$ 308,390
Total loans	4,783,467		4,814,136
Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	4,559,904		4,578,523
Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	75,179	[1]	84,739	[2]
Accruing Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	75,358		90,129
Nonaccrual Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	73,026		60,745
Commercial and industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	788,512		806,326
Commercial and industrial [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	763,443		779,236
Commercial and industrial [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans held for sale	800		900
Number of Loans	3		5
Total loans	5,890	[1]	13,691	[2]
Commercial and industrial [Member] | Accruing Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	9,108		9,062
Commercial and industrial [Member] | Nonaccrual Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	10,071		4,337
Commercial real estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	1,688,441		1,691,350
Commercial real estate [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	1,541,944		1,531,701
Commercial real estate [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans held for sale	3,000		3,000
Number of Loans	3		3
Total loans	52,024	[1]	54,000	[2]
Commercial real estate [Member] | Accruing Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	48,178		63,953
Commercial real estate [Member] | Nonaccrual Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	46,295		41,696
Construction and land [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	148,917		137,570
Construction and land [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	122,964		110,940
Construction and land [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	17,265		17,048
Construction and land [Member] | Accruing Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	4,136		7,369
Construction and land [Member] | Nonaccrual Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	4,552		2,213
Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	1,898,413		1,906,089
Residential [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	1,874,391		1,886,273
Residential [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	0		0
Residential [Member] | Accruing Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	12,263		8,072
Residential [Member] | Nonaccrual Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	11,759		11,744
Home equity [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	118,182		123,551
Home equity [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	116,169		121,218
Home equity [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	0		0
Home equity [Member] | Accruing Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	1,673		1,673
Home equity [Member] | Nonaccrual Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	340		660
Consumer and other [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	141,002		149,250
Consumer and other [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	140,993		149,155
Consumer and other [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	0		0
Consumer and other [Member] | Accruing Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	0		0
Consumer and other [Member] | Nonaccrual Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 9		$ 95

[1] Does not include three commercial and industrial special mention loans totaling $0.8 million and three commercial real estate special mention loans totaling $3.0 million in loans held for sale as of March 31, 2013.

[2] Does not include five commercial and industrial special mention loans totaling $0.9 million and three commercial real estate special mention loans totaling $3.0 million in loans held for sale as of December 31, 2012.

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Subsequent Events

3 Months Ended

Mar. 31, 2013

Subsequent Events [Abstract]

Subsequent Events [Text Block]

Subsequent Events

The Company evaluated subsequent events through the date the accompanying unaudited interim consolidated financial statements were issued. Pursuant to the requirements of ASC 855, Subsequent Events, there were no events or transactions during the subsequent event reporting period that required disclosure in the unaudited consolidated interim financial statements, other than the two transactions discussed below.

On April 24, 2013, the Company closed the public offering of 2,000,000 depositary shares (the “Depositary Shares”) pursuant to an Underwriting Agreement dated April 17, 2013, previously disclosed by the Company. Each Depositary Share represents a 1/40th interest in a share of the Company’s 6.95% Non-Cumulative Perpetual Preferred Stock, Series D, par value $1.00 per share and liquidation preference of $1,000 per share (the “Series D Preferred Stock”).

Upon the issuance of the Series D Preferred Stock on April 24, 2013, the ability of the Company to declare and pay dividends on, or purchase, redeem or otherwise acquire, shares of its preferred stock or any securities of the Company that rank junior to the Series D Preferred Stock was subject to certain restrictions in the event that the Company does not declare and pay (or set aside) dividends on the Series D Preferred Stock for the last preceding dividend period.

Also on April 24, 2013, the Company repurchased all 400.81221 shares of the Company’s Series B Non-Cumulative Perpetual Contingent Convertible Preferred Stock, par value $1.00 per share, held by BP Holdco, L.P. pursuant to a Stock Repurchase Agreement, dated as of April 16, 2013, previously disclosed by the Company.

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Loan Portfolio and Credit Quality (Tables)

3 Months Ended

Mar. 31, 2013

Loans Receivable [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:

	March 31, 2013		December 31, 2012
	(In thousands)
Commercial and industrial	$	788,512	$	806,326
Commercial real estate	1,688,441		1,691,350
Construction and land	148,917		137,570
Residential	1,898,413		1,906,089
Home equity	118,182		123,551
Consumer and other	141,002		149,250
Total Loans	$	4,783,467	$	4,814,136

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:

	March 31, 2013		December 31, 2012
	(In thousands)
Commercial and industrial	$	10,071	$	4,337
Commercial real estate	46,295		41,696
Construction and land	4,552		2,213
Residential	11,759		11,744
Home equity	340		660
Consumer and other	9		95
Total	$	73,026	$	60,745

Past Due Financing Receivables [Table Text Block]

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

	March 31, 2013
	Accruing Past Due								Nonaccrual Loans
	30-59 Days Past Due (1)		60-89 Days Past Due		90+ Days Past Due		Total Accruing Past Due		Current Payment Status		30-89 Days Past Due		90+ Days Past Due		Total Non-Accrual Loans		Current Accruing Loans		Total Loans Receivable
	(In thousands)
Commercial and industrial	$	825	$	2,625	$	—	$	3,450	$	1,210	$	28	$	8,833	$	10,071	$	774,991	$	788,512
Commercial real estate	1,478		241		—		1,719		26,489		5,968		13,838		46,295		1,640,427		1,688,441
Construction and land	36		276		50		362		715		38		3,799		4,552		144,003		148,917
Residential	11,243		282		—		11,525		2,236		3,039		6,484		11,759		1,875,129		1,898,413
Home equity	31		175		—		206		300		—		40		340		117,636		118,182
Consumer and other	37		55		—		92		5		1		3		9		140,901		141,002
Total	$	13,650	$	3,654	$	50	$	17,354	$	30,955	$	9,074	$	32,997	$	73,026	$	4,693,087	$	4,783,467

___________________

(1) Does not include one commercial and industrial 30-59 day delinquent loan totaling $0.1 million in loans held for sale as of March 31, 2013.

	December 31, 2012
	Accruing Past Due								Nonaccrual Loans
	30-59 Days Past Due (1)		60-89 Days Past Due		90+ Days Past Due		Total Accruing Past Due		Current Payment Status		30-89 Days Past Due		90+ Days Past Due		Total Non-Accrual Loans		Current Accruing Loans		Total Loans Receivable
	(In thousands)
Commercial and industrial	$	10,684	$	210	$	257	$	11,151	$	3,073	$	—	$	1,264	$	4,337	$	790,838	$	806,326
Commercial real estate	3,331		4,572		3,249		11,152		29,125		8,913		3,658		41,696		1,638,502		1,691,350
Construction and land	42		3,216		50		3,308		723		137		1,353		2,213		132,049		137,570
Residential	20,194		3,218		—		23,412		5,101		1,980		4,663		11,744		1,870,933		1,906,089
Home equity	119		39		—		158		300		—		360		660		122,733		123,551
Consumer and other	569		182		—		751		93		—		2		95		148,404		149,250
Total	$	34,939	$	11,437	$	3,556	$	49,932	$	38,415	$	11,030	$	11,300	$	60,745	$	4,703,459	$	4,814,136

Financing Receivable Credit Quality Indicators [Table Text Block]

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

	March 31, 2013
	By Loan Grade or Nonaccrual Status
	Pass		Special Mention (1)		Accruing Substandard		Nonaccrual Loans		Total
	(In thousands)
Commercial and industrial	$	763,443	$	5,890	$	9,108	$	10,071	$	788,512
Commercial real estate	1,541,944		52,024		48,178		46,295		1,688,441
Construction and land	122,964		17,265		4,136		4,552		148,917
Residential	1,874,391		—		12,263		11,759		1,898,413
Home equity	116,169		—		1,673		340		118,182
Consumer and other	140,993		—		—		9		141,002
Total	$	4,559,904	$	75,179	$	75,358	$	73,026	$	4,783,467

___________________

(1) Does not include three commercial and industrial special mention loans totaling $0.8 million and three commercial real estate special mention loans totaling $3.0 million in loans held for sale as of March 31, 2013.

	December 31, 2012
	By Loan Grade or Nonaccrual Status
	Pass		Special Mention (1)		Accruing Substandard		Nonaccrual Loans		Total
	(In thousands)
Commercial and industrial	$	779,236	$	13,691	$	9,062	$	4,337	$	806,326
Commercial real estate	1,531,701		54,000		63,953		41,696		1,691,350
Construction and land	110,940		17,048		7,369		2,213		137,570
Residential	1,886,273		—		8,072		11,744		1,906,089
Home equity	121,218		—		1,673		660		123,551
Consumer and other	149,155		—		—		95		149,250
Total	$	4,578,523	$	84,739	$	90,129	$	60,745	$	4,814,136

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 months ended March 31, 2013
	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	$	7,859	$	9,043	n/a		$	7,251	$	81
Commercial real estate	39,348		58,523		n/a		39,835		101
Construction and land	934		1,547		n/a		2,633		91
Residential	6,696		8,164		n/a		3,427		29
Home equity	40		40		n/a		280		1
Consumer and other	—		—		n/a		—		—
Subtotal	54,877		77,317		n/a		53,426		303
With an allowance recorded:
Commercial and industrial	3,245		3,310		$	369	1,676		4
Commercial real estate	24,475		25,957		2,446		20,702		112
Construction and land	3,965		4,046		417		1,637		—
Residential	10,584		10,843		1,496		13,633		112
Home equity	—		—		—		—		—
Consumer and other	—		—		—		—		—
Subtotal	42,269		44,156		4,728		37,648		228
Total:
Commercial and industrial	11,104		12,353		369		8,927		85
Commercial real estate	63,823		84,480		2,446		60,537		213
Construction and land	4,899		5,593		417		4,270		91
Residential	17,280		19,007		1,496		17,060		141
Home equity	40		40		—		280		1
Consumer and other	—		—		—		—		—
Total	$	97,146	$	121,473	$	4,728	$	91,074	$	531

___________________

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

	As of and for the three months ended March 31, 2012
	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	$	6,538	$	9,264	n/a		$	5,855	$	—
Commercial real estate	29,964		44,809		n/a		33,543		104
Construction and land	6,087		10,360		n/a		6,294		97
Residential	9,572		10,542		n/a		10,232		81
Home equity	360		360		n/a		342		1
Consumer and other	—		—		n/a		—		—
Subtotal	52,521		75,335		n/a		56,266		283
With an allowance recorded:
Commercial and industrial	1,081		1,109		$	113	1,101		—
Commercial real estate	28,121		29,624		3,245		24,586		173
Construction and land	1,194		1,224		313		1,234		—
Residential	13,757		13,757		868		8,295		63
Home equity	131		131		131		131		2
Consumer and other	—		—		—		—		—
Subtotal	44,284		45,845		4,670		35,347		238
Total:
Commercial and industrial	7,619		10,373		113		6,956		—
Commercial real estate	58,085		74,433		3,245		58,129		277
Construction and land	7,281		11,584		313		7,528		97
Residential	23,329		24,299		868		18,527		144
Home equity	491		491		131		473		3
Consumer and other	—		—		—		—		—
Total	$	96,805	$	121,180	$	4,670	$	91,613	$	521

___________________

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

	As of and for the year ended December 31, 2012
	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	$	3,274	$	4,499	n/a		$	4,707	$	—
Commercial real estate	40,133		64,424		n/a		31,736		283
Construction and land	1,310		2,682		n/a		5,532		97
Residential	2,337		2,594		n/a		8,885		312
Home equity	360		360		n/a		355		3
Consumer and other	—		—		n/a		40		—
Subtotal	47,414		74,559		n/a		51,255		695
With an allowance recorded:
Commercial and industrial	1,149		1,191		$	118	1,855		1
Commercial real estate	18,519		19,814		1,667		24,510		727
Construction and land	903		953		189		1,486		—
Residential	13,539		13,798		1,403		11,781		374
Home equity	—		—		—		114		5
Consumer and other	—		—		—		—		—
Subtotal	34,110		35,756		3,377		39,746		1,107
Total:
Commercial and industrial	4,423		5,690		118		6,562		1
Commercial real estate	58,652		84,238		1,667		56,246		1,010
Construction and land	2,213		3,635		189		7,018		97
Residential	15,876		16,392		1,403		20,666		686
Home equity	360		360		—		469		8
Consumer and other	—		—		—		40		—
Total	$	81,524	$	110,315	$	3,377	$	91,001	$	1,802

___________________

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

Troubled Debt Restructurings on Financing Receivables [Table Text Block]

The following tables present the balance of TDRs that were restructured or defaulted during the periods indicated:

	As of and for the three months ended March 31, 2013
	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)	2	$	1,219	$	1,219	—	$	—
Commercial real estate (2)	5	9,163		9,163		1	561
Construction and land (3)	1	347		347		—	—
Residential	—	—		—		—	—
Home equity	—	—		—		—	—
Consumer and other	—	—		—		—	—
Total	8	$	10,729	$	10,729	1	$	561

___________________

(1) Represents the following concessions: extension of term (1 loan; post-modification recorded investment of $1.0 million); and temporary rate reduction (1 loan; post-modification recorded investment of $0.2 million).

(2) Represents the following concessions: extension of term (4 loans; post-modification recorded investment of $9.0 million); and combination of concessions (1 loan; post-modification recorded investment of $0.2 million).

(3) Represents the following concessions: extension of term.

	As of and for the three months ended March 31, 2012
	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	—	$	—	$	—	—	$	—
Commercial real estate (1)	4	5,545		5,545		—	—
Construction and land	—	—		—		—	—
Residential (2)	8	3,702		3,702		—	—
Home equity	—	—		—		—	—
Consumer and other	—	—		—		—	—
Total	12	$	9,247	$	9,247	—	$	—

___________________

(1) Represents the following concessions: extension of term (3 loans; post-modification recorded investment of $2.7 million); and combination of concessions (1 loan; post-modification recorded investment of $2.8 million).

(2) Represents the following concessions: payment deferral (1 loan; post-modification recorded investment of $1.9 million); temporary rate reduction (6 loans; post-modification recorded investment of $0.5 million); and combination of concessions (1 loan; post-modification recorded investment of $1.3 million).

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Loan Portfolio and Credit Quality Nonaccrual Loans by Class of Financing Receivable (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	$ 73,026	$ 60,745
Commercial and industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	10,071	4,337
Commercial real estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	46,295	41,696
Construction and land [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	4,552	2,213
Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	11,759	11,744
Home equity [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	340	660
Consumer and other [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	$ 9	$ 95

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Investments Available for Sale Securities in Unrealized Loss Position (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013 securities	Dec. 31, 2012 securities
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	$ 158,789	$ 142,948
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses	(1,338)	(1,086)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	3,605	3,994
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses	(36)	(21)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	162,394	146,942
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses	(1,374)	(1,107)
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	50	46
US Government and Government Agencies and Authorities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	1,216	1,472
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses	(33)	(26)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	1,198	1,281
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses	(8)	(2)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	2,414	2,753
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses	(41)	(28)
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	2	2
US Government-sponsored Enterprises Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	0	19,982
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses	0	(18)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	0	0
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses	0	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	0	19,982
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses	0	(18)
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	0	2
Municipal Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	26,436	20,102
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses	(231)	(140)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	0	0
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses	0	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	26,436	20,102
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses	(231)	(140)
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	19	13
Mortgage Backed Securities, Other [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	131,081	101,280
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses	(1,072)	(891)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	2,371	2,701
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses	(23)	(18)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	133,452	103,981
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses	(1,095)	(909)
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	20	17
Other Aggregated Investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	56	112
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses	(2)	(11)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	36	12
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses	(5)	(1)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	92	124
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses	$ (7)	$ (12)
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	9	12

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Consolidated Statements of Comprehensive Income (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013		Mar. 31, 2012
Net income/ (loss) attributable to the Company	$ 13,203	[1]	$ 9,505	[1]
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax	(609)		9
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax	6		7
Net unrealized gain/ (loss) on securities available for sale	(615)		2
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax	(63)		(162)
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Net of Tax	(270)		(243)
Net change in unrealized gain/ (loss) on cash flow hedges	207		81
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax	(156)		(141)
Other comprehensive income/ (loss), net of tax	(564)		(58)
Comprehensive Income (Loss), Net of Tax, Attributable to Parent	$ 12,639		$ 9,447

[1] Net income from discontinued operations for the three months ended March 31, 2013, and 2012 of $1.7 million, and $1.6 million, respectively, are included in Holding Company and Eliminations in the calculation of net income attributable to the Company.

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Earnings Per Share

3 Months Ended

Mar. 31, 2013

Eps [Abstract]

Earnings Per Share [Text Block]

Earnings Per Share

The two class method of calculating EPS is presented below for the three months ended March 31, 2013 and 2012.   The following tables present the computations of basic and diluted EPS:

	Three months ended March 31,
	2013			2012
(In thousands, except share and per share data)
Basic earnings/ (loss) per share - Numerator:
Net income from continuing operations	$	12,411		$	8,744
Less: Net income attributable to noncontrolling interests	930			793
Net income from continuing operations attributable to the Company	11,481			7,951
Decrease/ (increase) in noncontrolling interests’ redemption values (1)	(15		)	(86		)
Dividends on participating securities	(442		)	(92		)
Total adjustments to income attributable to common shareholders	(457		)	(178		)
Net income from continuing operations attributable to common shareholders, before allocation to participating securities	11,024			7,773
Less: Amount allocated to participating securities	(731		)	(763		)
Net income from continuing operations attributable to common shareholders, after allocation to participating securities	$	10,293		$	7,010
Net income from discontinued operations, before allocation to participating securities	$	1,722		$	1,554
Less: Amount allocated to participating securities	(177		)	(169		)
Net income from discontinued operations, after allocation to participating securities	$	1,545		$	1,385
Net income attributable to common shareholders, before allocation to participating securities	$	12,746		$	9,327
Less: Amount allocated to participating securities	(908		)	(932		)
Net income attributable to common shareholders, after allocation to participating securities	$	11,838		$	8,395
Basic earnings/ (loss) per share - Denominator:
Weighted average basic common shares outstanding	76,818,610			75,632,980
Per share data - Basic earnings/ (loss) per share from:
Continuing operations	$	0.13		$	0.09
Discontinued operations	$	0.02		$	0.02
Total attributable to common shareholders	$	0.15		$	0.11

	Three months ended March 31,
(In thousands, except share and per share data)	2013		2012
(In thousands, except share and per share data)
Diluted earnings/ (loss) per share - Numerator:
Net income from continuing operations attributable to common shareholders, after allocation to participating securities	$	10,293	$	7,010
Add back: income allocated to dilutive securities	—		—
Net income from continuing operations attributable to common shareholders, after allocation to participating securities, after assumed dilution	10,293		7,010
Net income from discontinued operations, after allocation to participating securities	1,545		1,385
Net income attributable to common shareholders, after allocation to participating securities, after assumed dilution	$	11,838	$	8,395
Diluted earnings/ (loss) per share - Denominator:
Weighted average basic common shares outstanding	76,818,610		75,632,980
Dilutive effect of:
Stock options and performance-based restricted stock (2)	561,128		453,626
Warrants to purchase common stock (2)	445,692		346,245
Dilutive common shares	1,006,820		799,871
Weighted average diluted common shares outstanding (2)	77,825,430		76,432,851
Per share data - Diluted earnings/ (loss) per share from:
Continuing operations	$	0.13	$	0.09
Discontinued operations	$	0.02	$	0.02
Total attributable to common shareholders	$	0.15	$	0.11
Dividends per share declared on common stock	$	0.05	$	0.01

_____________________

(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, 2012 for a description of the redemption values related to the redeemable noncontrolling interests. In accordance with the Financial Accounting Standards Board (“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) The diluted EPS computations for the three months ended March 31, 2013 and 2012 do not assume the conversion, exercise, or contingent issuance of the following shares for these 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 March 31,
	2013	2012
Shares excluded due to anti-dilution (treasury method):	(In thousands)
Potential common shares from:
Convertible trust preferred securities (a)	21	1,399
Total shares excluded due to anti-dilution	21	1,399

	Three months ended March 31,
	2013	2012
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, performance-based restricted stock, or other dilutive securities (b)	1,627	2,495
Total shares excluded due to exercise price exceeding the average market price of common shares during the period	1,627	2,495

(a) If the effect of the conversion of the trust preferred securities would have been dilutive, interest expense, net of tax, related to the convertible trust preferred securities of $0.3 million for the three months ended March 31, 2012 would have been added back to net income attributable to common shareholders for diluted EPS computations for the period presented. None would be added back for the three months ended March 31, 2013.

(b) Options to purchase shares of common stock, non-participating (performance-based) restricted stock, and other dilutive securities that were outstanding at period ends were not included in the computation of diluted EPS or in the above anti-dilution table because their exercise or conversion prices were greater than the average market price of the common shares during the respective periods.

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Derivatives and Hedging Activities Effect of Derivative Instruments on Statement of Operations (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net	$ (22)	$ (277)
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	(461)	(416)
Interest Rate Contract [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net	(22)	(277)
Interest Rate Contract [Member] | Interest and Dividend Income [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	$ (461)	$ (416)

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Allowance for Loan Losses (Tables)

3 Months Ended

Mar. 31, 2013

Allowance for Loan Losses [Abstract]

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

The following tables present the Company’s allowance for loan losses and loan portfolio at March 31, 2013 and December 31, 2012 by portfolio segment, disaggregated by method of impairment analysis. The Company had no loans acquired with deteriorated credit quality at March 31, 2013 or December 31, 2012.

	Commercial and industrial		Commercial real estate		Construction and land		Residential
	(In thousands)
Allowance for loan losses balance at March 31, 2013 attributable to:
Loans collectively evaluated	$	11,480	$	48,020	$	4,370	$	9,958
Loans individually evaluated	369		2,446		417		1,496
Total allowance for loan losses	$	11,849	$	50,466	$	4,787	$	11,454
Recorded investment (loan balance) at March 31, 2013:
Loans collectively evaluated	$	777,408	$	1,624,618	$	144,018	$	1,881,133
Loans individually evaluated	11,104		63,823		4,899		17,280
Total Loans	$	788,512	$	1,688,441	$	148,917	$	1,898,413

	Home equity		Consumer and other		Unallocated		Total
(Continued from above)	(In thousands)
Allowance for loan losses balance at March 31, 2013 attributable to:
Loans collectively evaluated	$	1,146	$	464	$	2,120	$	77,558
Loans individually evaluated	—		—		—		4,728
Total allowance for loan losses	$	1,146	$	464	$	2,120	$	82,286
Recorded investment (loan balance) at March 31, 2013:
Loans collectively evaluated	$	118,142	$	141,002	$	—	$	4,686,321
Loans individually evaluated	40		—		—		97,146
Total Loans	$	118,182	$	141,002	$	—	$	4,783,467

	Commercial and industrial		Commercial real estate		Construction and land		Residential
	(In thousands)
Allowance for loan losses balance at December 31, 2012 attributable to:
Loans collectively evaluated	$	11,707	$	50,830	$	4,827	$	9,489
Loans individually evaluated	118		1,667		189		1,403
Total allowance for loan losses	$	11,825	$	52,497	$	5,016	$	10,892
Recorded investment (loan balance) at December 31, 2012:
Loans collectively evaluated	$	801,903	$	1,632,698	$	135,357	$	1,890,213
Loans individually evaluated	4,423		58,652		2,213		15,876
Total Loans	$	806,326	$	1,691,350	$	137,570	$	1,906,089

	Home equity		Consumer and other		Unallocated		Total
(Continued from above)	(In thousands)
Allowance for loan losses balance at December 31, 2012 attributable to:
Loans collectively evaluated	$	1,085	$	540	$	2,202	$	80,680
Loans individually evaluated	—		—		—		3,377
Total allowance for loan losses	$	1,085	$	540	$	2,202	$	84,057
Recorded investment (loan balance) at December 31, 2012:
Loans collectively evaluated	$	123,191	$	149,250	$	—	$	4,732,612
Loans individually evaluated	360		—		—		81,524
Total Loans	$	123,551	$	149,250	$	—	$	4,814,136

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 March 31,
	2013			2012
	(In thousands)
Allowance for loan losses, beginning of period:
Commercial and industrial	$	11,825		$	12,163
Commercial real estate	52,497			63,625
Construction and land	5,016			6,382
Residential	10,892			9,286
Home equity	1,085			1,535
Consumer and other	540			1,149
Unallocated	2,202			1,974
Total allowance for loan losses, beginning of period	84,057			96,114
Provision/ (credit) for loan losses:
Commercial and industrial	(114		)	1,827
Commercial real estate	(919		)	2,030
Construction and land	(1,036		)	(712		)
Residential	1,827			966
Home equity	398			(53		)
Consumer and other	(74		)	(116		)
Unallocated	(82		)	58
Total provision/ (credit) for loan losses	—			4,000
Loans charged-off:
Commercial and industrial	$	(27	)	$	(2,311	)
Commercial real estate	(1,239		)	(406		)
Construction and land	—			—
Residential	(1,265		)	(198		)
Home equity	(360		)	—
Consumer and other	(2		)	(26		)
Total charge-offs	(2,893		)	(2,941		)
Recoveries on loans previously charged-off:
Commercial and industrial	165			383
Commercial real estate	127			117
Construction and land	807			166
Residential	—			—
Home equity	23			61
Consumer and other	—			2
Total recoveries	1,122			729

	As of and for the three months ended March 31,
	2013		2012
	(In thousands)
Allowance for loan losses at end of period:
Commercial and industrial	11,849		12,062
Commercial real estate	50,466		65,366
Construction and land	4,787		5,836
Residential	11,454		10,054
Home equity	1,146		1,543
Consumer and other	464		1,009
Unallocated	2,120		2,032
Total allowance for loan losses at end of period	$	82,286	$	97,902

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

The following tables present the Company’s allowance for loan losses and loan portfolio at March 31, 2013 and December 31, 2012 by portfolio segment, disaggregated by method of impairment analysis. The Company had no loans acquired with deteriorated credit quality at March 31, 2013 or December 31, 2012.

	Commercial and industrial		Commercial real estate		Construction and land		Residential
	(In thousands)
Allowance for loan losses balance at March 31, 2013 attributable to:
Loans collectively evaluated	$	11,480	$	48,020	$	4,370	$	9,958
Loans individually evaluated	369		2,446		417		1,496
Total allowance for loan losses	$	11,849	$	50,466	$	4,787	$	11,454
Recorded investment (loan balance) at March 31, 2013:
Loans collectively evaluated	$	777,408	$	1,624,618	$	144,018	$	1,881,133
Loans individually evaluated	11,104		63,823		4,899		17,280
Total Loans	$	788,512	$	1,688,441	$	148,917	$	1,898,413

	Home equity		Consumer and other		Unallocated		Total
(Continued from above)	(In thousands)
Allowance for loan losses balance at March 31, 2013 attributable to:
Loans collectively evaluated	$	1,146	$	464	$	2,120	$	77,558
Loans individually evaluated	—		—		—		4,728
Total allowance for loan losses	$	1,146	$	464	$	2,120	$	82,286
Recorded investment (loan balance) at March 31, 2013:
Loans collectively evaluated	$	118,142	$	141,002	$	—	$	4,686,321
Loans individually evaluated	40		—		—		97,146
Total Loans	$	118,182	$	141,002	$	—	$	4,783,467

	Commercial and industrial		Commercial real estate		Construction and land		Residential
	(In thousands)
Allowance for loan losses balance at December 31, 2012 attributable to:
Loans collectively evaluated	$	11,707	$	50,830	$	4,827	$	9,489
Loans individually evaluated	118		1,667		189		1,403
Total allowance for loan losses	$	11,825	$	52,497	$	5,016	$	10,892
Recorded investment (loan balance) at December 31, 2012:
Loans collectively evaluated	$	801,903	$	1,632,698	$	135,357	$	1,890,213
Loans individually evaluated	4,423		58,652		2,213		15,876
Total Loans	$	806,326	$	1,691,350	$	137,570	$	1,906,089

	Home equity		Consumer and other		Unallocated		Total
(Continued from above)	(In thousands)
Allowance for loan losses balance at December 31, 2012 attributable to:
Loans collectively evaluated	$	1,085	$	540	$	2,202	$	80,680
Loans individually evaluated	—		—		—		3,377
Total allowance for loan losses	$	1,085	$	540	$	2,202	$	84,057
Recorded investment (loan balance) at December 31, 2012:
Loans collectively evaluated	$	123,191	$	149,250	$	—	$	4,732,612
Loans individually evaluated	360		—		—		81,524
Total Loans	$	123,551	$	149,250	$	—	$	4,814,136

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 March 31,
	2013			2012
	(In thousands)
Allowance for loan losses, beginning of period:
Commercial and industrial	$	11,825		$	12,163
Commercial real estate	52,497			63,625
Construction and land	5,016			6,382
Residential	10,892			9,286
Home equity	1,085			1,535
Consumer and other	540			1,149
Unallocated	2,202			1,974
Total allowance for loan losses, beginning of period	84,057			96,114
Provision/ (credit) for loan losses:
Commercial and industrial	(114		)	1,827
Commercial real estate	(919		)	2,030
Construction and land	(1,036		)	(712		)
Residential	1,827			966
Home equity	398			(53		)
Consumer and other	(74		)	(116		)
Unallocated	(82		)	58
Total provision/ (credit) for loan losses	—			4,000
Loans charged-off:
Commercial and industrial	$	(27	)	$	(2,311	)
Commercial real estate	(1,239		)	(406		)
Construction and land	—			—
Residential	(1,265		)	(198		)
Home equity	(360		)	—
Consumer and other	(2		)	(26		)
Total charge-offs	(2,893		)	(2,941		)
Recoveries on loans previously charged-off:
Commercial and industrial	165			383
Commercial real estate	127			117
Construction and land	807			166
Residential	—			—
Home equity	23			61
Consumer and other	—			2
Total recoveries	1,122			729

	As of and for the three months ended March 31,
	2013		2012
	(In thousands)
Allowance for loan losses at end of period:
Commercial and industrial	11,849		12,062
Commercial real estate	50,466		65,366
Construction and land	4,787		5,836
Residential	11,454		10,054
Home equity	1,146		1,543
Consumer and other	464		1,009
Unallocated	2,120		2,032
Total allowance for loan losses at end of period	$	82,286	$	97,902

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Investments Schedule of Available-for-sale Securities (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013		Dec. 31, 2012
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	$ 728,989		$ 690,556
Available-for-sale Securities, Gross Unrealized Gains	8,995		9,851
Available-for-sale Securities, Gross Unrealized Losses	(1,374)		(1,107)
Available-for-sale securities at fair value	736,610		699,300
US Government and Government Agencies and Authorities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	2,455		2,781
Available-for-sale Securities, Gross Unrealized Gains	0		0
Available-for-sale Securities, Gross Unrealized Losses	(41)		(28)
Available-for-sale securities at fair value	2,414		2,753
US Government-sponsored Enterprises Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	199,381		154,058
Available-for-sale Securities, Gross Unrealized Gains	872		962
Available-for-sale Securities, Gross Unrealized Losses	0		(18)
Available-for-sale securities at fair value	200,253		155,002
Municipal Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	204,955		207,952
Available-for-sale Securities, Gross Unrealized Gains	2,930		3,172
Available-for-sale Securities, Gross Unrealized Losses	(231)		(140)
Available-for-sale securities at fair value	207,654		210,984
Mortgage Backed Securities, Other [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	310,495	[1]	313,239	[1]
Available-for-sale Securities, Gross Unrealized Gains	5,016	[1]	5,597	[1]
Available-for-sale Securities, Gross Unrealized Losses	(1,095)	[1]	(909)	[1]
Available-for-sale securities at fair value	314,416	[1]	317,927	[1]
Other Aggregated Investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	11,703		12,526
Available-for-sale Securities, Gross Unrealized Gains	177		120
Available-for-sale Securities, Gross Unrealized Losses	(7)		(12)
Available-for-sale securities at fair value	$ 11,873		$ 12,634

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

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Recent Accounting Pronouncements

3 Months Ended

Mar. 31, 2013

Recent Accounting [Abstract]

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

Recent Accounting Pronouncements

In February 2013, the FASB issued ASU No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The amendments to this update require entities to present information about reclassifications out of accumulated other comprehensive income in a single note or on the face of the financial statements. The new guidance was effective for fiscal years, and interim periods within those years, beginning after December 15, 2012, with early adoption permitted. The Company did not early adopt. The adoption of this ASU did not have a material effect on the Company’s consolidated financial statements.

In July 2012, the FASB issued updated guidance, ASU 2012-02, Intangibles - Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment. The amendments in this update regarding the impairment testing applicable to indefinite-lived intangible assets, is similar to the impairment guidance issued in ASU 2011-08, Intangibles - Goodwill and Other (Topic 350): Testing Goodwill for Impairment, applicable to goodwill. Under the updated guidance, an entity may assess qualitative factors (such as changes in management, key personnel, strategy, key technology or customers) that may impact the fair value of the indefinite-lived intangible asset and lead to the determination that it is more likely than not that the fair value of the asset is less than its carrying value. If an entity determines that it is more likely than not that the fair value of the intangible asset is less than its carrying value, an impairment test must be performed. The impairment test requires an entity to calculate the estimated fair value of the indefinite-lived intangible asset. If the carrying value of the indefinite-lived intangible asset exceeds its estimated fair value, an impairment loss is recognized in an amount equal to the excess. The updated guidance is effective for annual and interim indefinite-lived intangible asset impairment tests performed for fiscal years beginning after September 15, 2012 and early adoption is permitted provided the Company has not yet performed its 2012 impairment test or issued its financial statements. The Company did not early adopt. The adoption of this ASU did not have a material effect on the Company’s consolidated financial statements.

In December 2011, the FASB issued new guidance, ASU 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities and in January 2013, the FASB issued, ASU 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. ASU 2011-11 requires entities to disclose both gross and net information about both instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject to an agreement similar to a master netting arrangement. ASU 2013-01 limits the scope of disclosures to derivatives, repurchase agreements and securities lending arrangements. The new guidance is effective for fiscal years, and interim periods within those years, beginning after January 1, 2013 and requires a retrospective application for all comparative periods which are presented. The adoption of these ASUs did not have a material effect on the Company’s consolidated financial statements.