Business Segments

3 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Business Segments

Business Segments

Washington Trust segregates financial information in assessing its results among its Commercial Banking and Wealth Management Services operating segments.  The amounts in the Corporate unit include activity not related to the segments. 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.

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.

Commercial Banking

The Commercial Banking segment includes commercial, 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 investment management; financial planning; personal trust services, including services as trustee, administrator, custodian and guardian; and estate settlement. Institutional trust services are also provided, including fiduciary 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, net gain on sale of business line as well as administrative and executive expenses not allocated to the operating segments and the residual impact of methodology allocations such as funds transfer pricing offsets.

The following table presents the statement of operations and total assets for Washington Trust’s reportable segments:

(Dollars in thousands)	Commercial Banking				Wealth Management Services						Corporate				Consolidated Total
Three months ended March 31,	2015		2014		2015			2014			2015		2014		2015		2014
Net interest income (expense)		$20,625		$19,739		($14	)		($4	)		$5,091		$4,101		$25,702		$23,836
Provision for loan losses	—		300		—			—			—		—		—		300
Net interest income (expense) after provision for loan losses	20,625		19,439		(14		)	(4		)	5,091		4,101		25,702		23,536
Noninterest income	5,078		4,541		8,435			8,065			507		6,764		14,020		19,370
Noninterest expenses:
Depreciation and amortization expense	671		585		306			311			60		51		1,037		947
Other noninterest expenses	13,587		13,553		5,915			5,387			2,992		9,405		22,494		28,345
Total noninterest expenses	14,258		14,138		6,221			5,698			3,052		9,456		23,531		29,292
Income before income taxes	11,445		9,842		2,200			2,363			2,546		1,409		16,191		13,614
Income tax expense	3,730		3,261		844			876			607		179		5,181		4,316
Net income		$7,715		$6,581		$1,356			$1,487			$1,939		$1,230		$11,010		$9,298
Total assets at period end		$3,015,691		$2,577,350		$52,568			$52,475			$534,255		$564,321		$3,602,514		$3,194,146
Expenditures for long-lived assets	1,067		1,075		114			171			45		45		1,226		1,291