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, 2017, 2016, and 2015. Interest expense on junior subordinated debentures is reported at the Holding Company.



	Year ended December 31,
	2017			2016			2015
Private Banking	(In thousands)
Net interest income	$	227,280		$	202,702		$	189,501
Fees and other income	10,856			18,947			11,352
Total revenues	238,136			221,649			200,853
Provision/ (credit) for loan losses	(7,669		)	(6,935		)	(1,555		)
Operating expense	149,008			125,116			116,575
Income before income taxes	96,797			103,468			85,833
Income tax expense (1)	43,356			33,120			27,844
Net income from continuing operations	53,441			70,348			57,989
Net income attributable to the Company	$	53,441		$	70,348		$	57,989

Assets	$	8,177,304		$	7,816,671		$	7,361,202
Amortization of intangibles	$	—		$	—		$	341
Depreciation	$	5,639		$	4,477		$	4,599



	Year ended December 31,
	2017			2016			2015
Wealth Management and Trust	(In thousands)
Fees and other income	$	45,813		$	44,401		$	53,336
Operating expense (2)	49,287			64,844			54,474
Income/ (loss) before income taxes	(3,474		)	(20,443		)	(1,138		)
Income tax expense / (benefit) (1)	(509		)	(8,279		)	(350		)
Net income/ (loss) from continuing operations	(2,965		)	(12,164		)	(788		)
Net income/ (loss) attributable to the Company	$	(2,965	)	$	(12,164	)	$	(788	)

Assets	$	74,128		$	80,501		$	80,088
Amortization of intangibles	$	2,882		$	2,962		$	2,428
Depreciation	$	1,331		$	1,145		$	772



	Year ended December 31,
	2017			2016		2015
Investment Management	(In thousands)
Net interest income	$	21		$	16	$	22
Fees and other income	45,551			44,443		45,687
Total revenues	45,572			44,459		45,709
Operating expense (3)	59,032			32,863		33,690
Income/ (loss) before income taxes	(13,460		)	11,596		12,019
Income tax expense (1)	3,811			3,789		3,956
Net income/ (loss) from continuing operations	(17,271		)	7,807		8,063
Noncontrolling interests	1,973			2,077		2,265
Net income/ (loss) attributable to the Company	$	(19,244	)	$	5,730	$	5,798

Assets	$	66,614		$	92,692	$	92,642
Amortization of intangibles	$	2,524		$	2,601	$	2,956
Depreciation	$	248		$	284	$	286



	Year ended December 31,
	2017		2016		2015
Wealth Advisory	(In thousands)
Net interest income	$	124	$	16	$	6
Fees and other income	52,636		50,686		50,558
Total revenues	52,760		50,702		50,564
Operating expense	35,753		34,791		35,379
Income before income taxes	17,007		15,911		15,185
Income tax expense (1)	6,418		6,084		5,819
Net income from continuing operations	10,589		9,827		9,366
Noncontrolling interests	2,495		2,080		2,138
Net income attributable to the Company	$	8,094	$	7,747	$	7,228

Assets	$	77,747	$	79,887	$	79,543
Amortization of intangibles	$	195	$	719	$	986
Depreciation	$	888	$	878	$	864



	Year ended December 31,
	2017			2016			2015
Holding Company and Eliminations	(In thousands)
Net interest income	$	(2,739	)	$	(2,296	)	$	(3,759	)
Fees and other income (4)	(890		)	310			236
Total revenues	(3,629		)	(1,986		)	(3,523		)
Operating expense	6,856			7,339			15,063
Income/ (loss) before income taxes	(10,485		)	(9,325		)	(18,586		)
Income tax expense/(benefit) (1)	(6,880		)	(3,751		)	(6,877		)
Net income/(loss) from continuing operations	(3,605		)	(5,574		)	(11,709		)
Noncontrolling interests	—			—			4
Discontinued operations (5)	4,870			5,541			6,411
Net income/(loss) attributable to the Company	$	1,265		$	(33	)	$	(5,302	)

Assets (including eliminations)	$	(84,049	)	$	(99,277	)	$	(70,967	)
Depreciation	$	—		$	54		$	69



	Year ended December 31,
	2017			2016			2015
Total Company	(In thousands)
Net interest income	$	224,686		$	200,438		$	185,770
Fees and other income	153,966			158,787			161,169
Total revenues	378,652			359,225			346,939
Provision/ (credit) for loan losses	(7,669		)	(6,935		)	(1,555		)
Operating expense	299,936			264,953			255,181
Income before income taxes	86,385			101,207			93,313
Income tax expense (1)	46,196			30,963			30,392
Net income from continuing operations	40,189			70,244			62,921
Noncontrolling interests	4,468			4,157			4,407
Discontinued operations (5)	4,870			5,541			6,411
Net income attributable to the Company	$	40,591		$	71,628		$	64,925

Assets	$	8,311,744		$	7,970,474		$	7,542,508
Amortization of intangibles	$	5,601		$	6,282		$	6,711
Depreciation	$	8,106		$	6,838		$	6,590

___________________

(1)

The Company’s effective tax rate for 2017, 2016, and 2015 is not consistent due to the re-measurement of the deferred tax assets, impairment of goodwill not deductible for tax purposes, 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 2017, 2016, and 2015. See Part II. Item 8. “Financial Statements and Supplementary Data - Note 17: Income Taxes” for additional details.


(2)	Operating expense related to the Wealth Management and Trust segment includes restructuring expenses of $2.0 million, and $3.7 million for the years ending December 31, 2016 and 2015 respectively, and a goodwill impairment charge of $9.5 million for the year ended December 31, 2016.


(3)	Operating expense related to the Investment Management Segment includes a goodwill impairment charge of $24.9 million for the year ended December 31, 2017.


(4)	Fees and other income for the Holding Company includes a loss on the sale of $1.3 million for the year ended December 31, 2017 related to the classification of Anchor as held for sale.


(5)	The Holding Company and Eliminations calculation of Net Income attributable to the Company includes net income from Discontinued Operations for the years ended December 31, 2017, 2016 and 2015 of $4.9 million, $5.5 million, and $6.4 million, respectively.