Business Segments

12 Months Ended

Dec. 31, 2011

Segment Reporting [Abstract]

Business Segments

Business Segments

Washington Trust segregates financial information in assessing its results among two operating segments: Commercial Banking and Wealth Management Services.  The amounts in the Corporate column include activity not related to the segments, such as the investment securities portfolio, wholesale funding activities and administrative units.  The Corporate column is not considered to be an operating segment.  The methodologies and organizational hierarchies that define the business segments are periodically reviewed and revised.  Results may be restated, when necessary, to reflect changes in organizational structure or allocation methodology. Any changes in estimates and allocations that may affect the reported results of any business segment will not affect the consolidated financial position or results of operations of Washington Trust as a whole.

The following tables present the statement of operations and total assets for Washington Trust’s reportable segments.

(Dollars in thousands)
Year ended December 31, 2011	Commercial Banking		Wealth Management Services			Corporate			Consolidated Total
Net interest income (expense)		$75,967		($1	)		$8,989			$84,955
Noninterest income	22,009		28,306			2,449			52,764
Total income	97,976		28,305			11,438			137,719
Provision for loan losses	4,700		—			—			4,700
Depreciation and amortization expense	2,512		1,330			283			4,125
Other noninterest expenses	55,543		19,041			11,664			86,248
Total noninterest expenses	62,755		20,371			11,947			95,073
Income (loss) before income taxes	35,221		7,934			(509		)	42,646
Income tax expense (benefit)	11,852		2,957			(1,887		)	12,922
Net income		$23,369		$4,977			$1,378			$29,724
Total assets at period end		$2,257,326		$51,104			$755,668			$3,064,098
Expenditures for long-lived assets		$2,982		$493			$169			$3,644

(Dollars in thousands)
Year ended December 31, 2010	Commercial Banking		Wealth Management Services			Corporate			Consolidated Total
Net interest income (expense)		$73,788		($47	)		$3,450			$77,191
Noninterest income	19,770		26,392			2,311			48,473
Total income	93,558		26,345			5,761			125,664
Provision for loan losses	6,000		—			—			6,000
Depreciation and amortization expense	2,376		1,461			337			4,174
Other noninterest expenses	51,002		18,751			11,384			81,137
Total noninterest expenses	59,378		20,212			11,721			91,311
Income (loss) before income taxes	34,180		6,133			(5,960		)	34,353
Income tax expense (benefit)	11,821		2,296			(3,815		)	10,302
Net income (loss)		$22,359		$3,837			($2,145	)		$24,051
Total assets at period end		$2,095,515		$51,164			$762,846			$2,909,525
Expenditures for long-lived assets		$994		$176			$513			$1,683

(Dollars in thousands)
Year ended December 31, 2009	Commercial Banking		Wealth Management Services			Corporate			Consolidated Total
Net interest income (expense)		$64,627		($76	)		$1,341			$65,892
Noninterest income (expense)	19,595		23,786			(728		)	42,653
Total income	84,222		23,710			613			108,545
Provision for loan losses	8,500		—			—			8,500
Depreciation and amortization expense	2,495		1,669			158			4,322
Other noninterest expenses	46,882		17,324			9,075			73,281
Total noninterest expenses	57,877		18,993			9,233			86,103
Income (loss) before income taxes	26,345		4,717			(8,620		)	22,442
Income tax expense (benefit)	9,087		1,715			(4,456		)	6,346
Net income (loss)		$17,258		$3,002			($4,164	)		$16,096
Total assets at period end		$2,017,616		$51,742			$815,115			$2,884,473
Expenditures for long-lived assets		$4,323		$961			$273			$5,557

Management uses certain methodologies to allocate income and expenses to the business lines.  A funds transfer pricing methodology is used to assign interest income and interest expense to each interest-earning asset and interest-bearing liability on a matched maturity funding basis.  Certain indirect expenses are allocated to segments.  These include support unit expenses such as technology and processing operations and other support functions.  Taxes are allocated to each segment based on the effective rate for the period shown.

Commercial Banking

The Commercial Banking segment includes commercial, commercial real estate, residential and consumer lending activities; equity in losses of unconsolidated investments in real estate limited partnerships, mortgage banking, secondary market and loan servicing activities; deposit generation; merchant credit card services; cash management activities; and direct banking activities, which include the operation of ATMs, telephone and Internet banking services and customer support and sales.

Wealth Management Services

Wealth Management Services includes asset management services provided for individuals, institutions and mutual funds; personal trust services, including services as executor, trustee, administrator, custodian and guardian; institutional trust services, including services as trustee for pension and profit sharing plans; and other financial planning and advisory services.

Corporate

Corporate includes the Treasury Unit, which is responsible for managing the wholesale investment portfolio and wholesale funding needs.  It also includes income from bank-owned life insurance as well as administrative and executive expenses not allocated to the business lines and the residual impact of methodology allocations such as funds transfer pricing offsets.