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 year ended December 31, 2015, 2014, and 2013. Interest expense on junior subordinated debentures is reported at the Holding Company.



	Year ended December 31,
	2015			2014			2013
Private Banking	(In thousands)
Net interest income	$	189,501		$	183,424		$	178,199
Fees and other income (1)	11,352			10,617			22,454
Total revenues	200,853			194,041			200,653
Provision/ (credit) for loan losses	(1,555		)	(6,400		)	(10,000		)
Operating expense	116,575			111,901			118,488
Income before income taxes	85,833			88,540			92,165
Income tax expense (3)	27,844			29,032			30,958
Net income from continuing operations	57,989			59,508			61,207
Net income attributable to the Company	$	57,989		$	59,508		$	61,207

Assets	$	7,361,202		$	6,611,191		$	6,246,148
Amortization of intangibles	$	341		$	219		$	277
Depreciation	$	4,599		$	5,294		$	5,350



	Year ended December 31,
	2015			2014		2013
Wealth Management and Trust	(In thousands)
Fees and other income	$	53,336		$	34,584	$	26,547
Total revenues	53,336			34,584		26,547
Operating expense (2)	54,474			29,401		20,733
Income before income taxes	(1,138		)	5,183		5,814
Income tax expense (3)	(350		)	2,201		2,392
Net income from continuing operations	(788		)	2,982		3,422
Net income attributable to the Company	$	(788	)	$	2,982	$	3,422

Assets	$	80,088		$	80,467	$	4,939
AUM	$	7,976,000		$	9,274,000	$	4,565,000
Amortization of intangibles	$	2,428		$	676	$	—
Depreciation	$	772		$	241	$	105



	Year ended December 31,
	2015		2014		2013
Investment Management	(In thousands)
Net interest income	$	22	$	22	$	20
Fees and other income	45,687		47,119		43,875
Total revenues	45,709		47,141		43,895
Operating expense	33,690		34,848		33,195
Income before income taxes	12,019		12,293		10,700
Income tax expense (3)	3,956		4,078		3,493
Net income from continuing operations	8,063		8,215		7,207
Noncontrolling interests	2,265		2,519		2,164
Net income attributable to the Company	$	5,798	$	5,696	$	5,043

Assets	$	92,642	$	100,229	$	100,609
AUM	$	9,952,000	$	10,772,000	$	10,401,000
Amortization of intangibles	$	2,956	$	2,955	$	3,058
Depreciation	$	286	$	240	$	221



	Year ended December 31,
	2015		2014		2013
Wealth Advisory	(In thousands)
Net interest income	$	6	$	10	$	66
Fees and other income	50,558		48,199		42,350
Total revenues	50,564		48,209		42,416
Operating expense	35,379		33,213		29,588
Income before income taxes	15,185		14,996		12,828
Income tax expense (3)	5,819		5,653		4,807
Net income from continuing operations	9,366		9,343		8,021
Noncontrolling interests	2,138		2,189		1,784
Net income attributable to the Company	$	7,228	$	7,154	$	6,237

Assets	$	79,543	$	80,804	$	73,972
AUM	$	9,688,000	$	9,883,000	$	9,336,000
Amortization of intangibles	$	986	$	986	$	992
Depreciation	$	864	$	488	$	363



	Year ended December 31,
	2015			2014			2013
Holding Company and Eliminations	(In thousands)
Net interest income	$	(3,759	)	$	(3,755	)	$	(4,267	)
Fees and other income	236			279			1,115
Total revenues	(3,523		)	(3,476		)	(3,152		)
Operating expense	15,063			17,766			18,701
Income/ (loss) before income taxes	(18,586		)	(21,242		)	(21,853		)
Income tax expense/(benefit) (3)	(6,877		)	(8,599		)	(8,687		)
Net income/(loss) from continuing operations	(11,709		)	(12,643		)	(13,166		)
Noncontrolling interests	4			42			—
Discontinued operations (4)	6,411			6,160			7,792
Net income/(loss) attributable to the Company	$	(5,302	)	$	(6,525	)	$	(5,374	)

Assets	$	(70,967	)	$	(74,817	)	$	11,441
AUM	$	(21,000	)	$	(22,000	)	$	(22,000	)
Depreciation	$	69		$	205		$	196



	Year ended December 31,
	2015			2014			2013
Total Company	(In thousands)
Net interest income	$	185,770		$	179,701		$	174,018
Fees and other income	161,169			140,798			136,341
Total revenues	346,939			320,499			310,359
Provision/ (credit) for loan losses	(1,555		)	(6,400		)	(10,000		)
Operating expense	255,181			227,129			220,705
Income before income taxes	93,313			99,770			99,654
Income tax expense (3)	30,392			32,365			32,963
Net income from continuing operations	62,921			67,405			66,691
Noncontrolling interests	4,407			4,750			3,948
Discontinued operations	6,411			6,160			7,792
Net income attributable to the Company	$	64,925		$	68,815		$	70,535

Assets	$	7,542,508		$	6,797,874		$	6,437,109
AUM	$	27,595,000		$	29,907,000		$	24,280,000
Amortization of intangibles	$	6,711		$	4,836		$	4,327
Depreciation	$	6,590		$	6,468		$	6,235

___________________


(1)	Included in Private Banking non-interest income for the year ended December 31, 2013 is the $10.6 million gain on sale of the Bank’s three offices in the Pacific Northwest.


(2)	Operating expense for 2015 includes $3.7 million in restructuring expenses related to the Wealth Management and Trust segment. Operating expense for 2014 includes $0.7 million restructuring expenses. Operating expense for 2013 includes no restructuring expenses.

(3)

The Company’s effective tax rate for 2015, 2014, and 2013 are not consistent due to earnings from tax-exempt investments, non-deductible compensation, state and local taxes, income tax credits and income attributable to noncontrolling interests having a different impact on the effective tax rate due primarily to the different levels of income before taxes in years 2015, 2014, and 2013. See Part II. Item 8. “Financial Statements and Supplementary Data - Note 17: Income Taxes” for additional details.


(4)	Net income from discontinued operations for the years ended December 31, 2015, 2014 and 2013 of $6.4 million, $6.2 million, and $7.8 million, respectively, are included in Holding Company and Eliminations in the calculation of net income attributable to the Company.