After merging its four banks into a single entity and working to improve its risk profile, Boston Private Financial Holdings (BPFH) dramatically improved profits in the second quarter 2011 compared to the same period last year.

In the quarter, the Boston-based wealth manager and private bank reported net income of $14.3 million compared to a net loss of $400,000 for the second quarter 2010.

Revenue for the second quarter was $78.3 million, an increase of 11 percent compared with the same period in 2010. Net interest income was $46 million, up 2 percent from last year; fee income was $27.9 million, an increase of 8 percent. Provision for loan losses for the second quarter was a credit of $2.2 million, down $17.2 million from second quarter 2010, when the provision for losses was $15 million.

Expenses were up 10 percent, to $62.5 million, compared to 2010.

The second quarter saw the merger of the holding company’s four separate banking entities, with Boston Private Bank & Trust Co. absorbing three West Coast subsidiaries.

Boston Private’s executives praised the company’s new strategy.

"Through improved performance and the bank consolidation, we have both strengthened our capital ratios and created a more efficient capital base," said David J. Kaye, Chief Financial Officer. "While expenses remain elevated due to restructuring costs, we still anticipate the impact of previously announced merger-related savings to be realized by the second quarter 2012."

CEO and President Clayton G. Deutsch also applauded the bank’s other successes.

"The quarter provides clear evidence that our program to reduce risk and improve our credit profile is gaining traction. We see significant declines in problem loans, we have reduced our elevated levels of loan loss provision, and we are continuing to accumulate capital."