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Reportable Segments
 3 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]  
Reportable Segments Reportable Segments
Management reporting
The Company has two reportable segments: (i) Private Banking and (ii) Wealth Management and Trust, as well as Boston Private Financial Holdings, Inc. within Holding Company and Eliminations. The financial performance of the Company is managed and evaluated according to these two segments. Each segment is managed by a segment leader (“Segment Leader”) who has full authority and responsibility for the performance and the allocation of resources within their segment. The Company’s Chief Executive Officer (“CEO”) is the Company’s Chief Operating Decision Maker (“CODM”).
The Segment Leader for Private Banking is the CEO of Boston Private Bank, who is also the Company’s CEO. The Bank’s banking operations are reported in the Private Banking segment. The Segment Leader for Wealth Management and Trust is the President of Private Banking, Wealth and Trust. The Segment Leader of Wealth Management and Trust reports to the CEO of the Company. The Segment Leaders have authority with respect to the allocation of capital within their respective segments, management oversight responsibility, performance assessments, and overall authority and accountability within their respective segment. The Company’s CODM communicates with the President of Private Banking, Wealth and Trust regarding profit and loss responsibility, strategic planning, priority setting, and other matters. The Company’s Chief Financial Officer reviews all financial detail with the CODM on a monthly basis.
Description of reportable segments
Private Banking
The Private Banking segment operates primarily in three geographic markets: New England, Northern California, and Southern California. The Bank conducts business under the name of Boston Private Bank & Trust Company in all markets. The Bank is principally engaged in providing private banking services to high net worth individuals, privately-owned businesses and partnerships, and nonprofit organizations. In addition, the Bank is an active provider of financing for affordable housing, first-time homebuyers, economic development, social services, community revitalization, and small businesses.
Wealth Management and Trust
The Wealth Management and Trust segment is comprised of the trust operations of the Bank and the operations of Boston Private Wealth. The Wealth Management and Trust segment offers planning-based financial strategies, wealth management, family office, financial planning, tax planning, and trust services to individuals, families, institutions, and nonprofit institutions. The Wealth Management and Trust segment operates in New England, New York, Southeast Florida, Northern California, and Southern California.
Measurement of segment profit and assets
The accounting policies of the segments are the same as those described in Part I. Item 1. "Notes to Unaudited Consolidated Financial Statements - Note 1: Basis of Presentation and Summary of Significant Accounting Policies."
Reconciliation of reportable segment items
The following tables present a reconciliation of the revenues, expenses, assets, and other significant items of the reportable segments as of and for the three months ended March 31, 2021 and 2020.
Three months ended March 31,
20212020
Private Banking (1)(In thousands)
Net interest income$59,948 $58,090 
Fees and other income4,075 1,108 
Total revenue64,023 59,198 
Provision/(credit) for loan losses(7,004)16,962 
Operating expense 44,460 42,588 
Income/(loss) before income taxes26,567 (352)
Income tax expense/(benefit)4,720 (931)
Net income before attribution to noncontrolling interests21,847 579 
Net income attributable to the Company$21,847 $579 
Assets$10,485,377 $8,692,069 
Amortization of intangibles$189 $77 
Depreciation$2,971 $2,626 
Three months ended March 31,
20212020
Wealth Management and Trust (1)(In thousands)
Net interest income$1 $72 
Fees and other income19,165 18,485 
Total revenue19,166 18,557 
Operating expense 17,455 15,449 
Income before income taxes1,711 3,108 
Income tax expense499 1,074 
Net income before attribution to noncontrolling interests1,212 2,034 
Net income attributable to the Company$1,212 $2,034 
Assets$155,994 $143,998 
Amortization of intangibles$478 $638 
Depreciation$347 $294 
Three months ended March 31,
20212020
Holding Company and Eliminations (1)(2)(In thousands)
Net interest income (3)$(472)$(905)
Fees and other income2,930 1,928 
Total revenue2,458 1,023 
Operating expense14,008 2,871 
Income/(loss) before income taxes(11,550)(1,848)
Income tax expense/(benefit) 857 (41)
Net income/(loss) before attribution to noncontrolling interests(12,407)$(1,807)
Noncontrolling interests— 6 
Net income/(loss) attributable to the Company$(12,407)$(1,813)
Assets (including eliminations)$(102,879)$(89,741)
Depreciation$430 $39 
Three months ended March 31,
20212020
Total Company (1)(In thousands)
Net interest income$59,477 $57,257 
Fees and other income26,170 21,521 
Total revenue85,647 78,778 
Provision/(credit) for loan losses(7,004)16,962 
Operating expense75,923 60,908 
Income before income taxes16,728 908 
Income tax expense6,076 102 
Net income before attribution to noncontrolling interests10,652 806 
Noncontrolling interests— 6 
Net income attributable to the Company$10,652 $800 
Assets$10,538,492 $8,746,326 
Amortization of intangibles$667 $715 
Depreciation$3,748 $2,959 
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(1)Due to rounding, the sum of individual segment results may not add up to the Total Company results.
(2)The Holding Company and Eliminations segment includes the results of DGHM.
(3)Interest expense on Junior subordinated debentures is included in Holding Company and Eliminations.