Business Segments

12 Months Ended

Dec. 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.

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, 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 and estate services, including services as trustee, personal representative, custodian and guardian; and settlement of decedents’ estates. 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 tables present the statement of operations and total assets for Washington Trust’s reportable segments:

(Dollars in thousands)
Year ended December 31, 2015	Commercial Banking		Wealth Management Services			Corporate		Consolidated Total
Net interest income (expense)		$84,757		($47	)		$19,272		$103,982
Provision for loan losses	1,050		—			—		1,050
Net interest income (expense) after provision for loan losses	83,707		(47		)	19,272		102,932
Noninterest income	20,618		35,416			2,306		58,340
Noninterest expenses:
Depreciation and amortization expense	2,584		1,488			213		4,285
Other noninterest expenses	55,203		25,632			11,809		92,644
Total noninterest expenses	57,787		27,120			12,022		96,929
Income before income taxes	46,538		8,249			9,556		64,343
Income tax expense	15,330		3,475			2,073		20,878
Net income		$31,208		$4,774			$7,483		$43,465
Total assets at period end		$3,152,231		$63,801			$555,572		$3,771,604
Expenditures for long-lived assets	4,714		411			354		5,479

(Dollars in thousands)
Year ended December 31, 2014	Commercial Banking		Wealth Management Services			Corporate		Consolidated Total
Net interest income (expense)		$80,500		($24	)		$19,029		$99,505
Provision for loan losses	1,850		—			—		1,850
Net interest income (expense) after provision for loan losses	78,650		(24		)	19,029		97,655
Noninterest income	17,575		33,378			8,062		59,015
Noninterest expenses:
Depreciation and amortization expense	2,447		1,127			203		3,777
Other noninterest expenses	52,639		22,386			18,045		93,070
Total noninterest expenses	55,086		23,513			18,248		96,847
Income before income taxes	41,139		9,841			8,843		59,823
Income tax expense	13,497		3,724			1,778		18,999
Net income		$27,642		$6,117			$7,065		$40,824
Total assets at period end		$2,986,453		$52,720			$547,701		$3,586,874
Expenditures for long-lived assets	3,474		1,578			174		5,226

(Dollars in thousands)
Year ended December 31, 2013	Commercial Banking		Wealth Management Services		Corporate			Consolidated Total
Net interest income		$79,633		$7		$12,145			$91,785
Provision for loan losses	2,400		—		—			2,400
Net interest income after provision for loan losses	77,233		7		12,145			89,385
Noninterest income (expense)	30,769		31,825		(514		)	62,080
Noninterest expenses:
Depreciation and amortization expense	2,473		1,277		213			3,963
Other noninterest expenses	61,976		20,494		12,352			94,822
Total noninterest expenses	64,449		21,771		12,565			98,785
Income (loss) before income taxes	43,553		10,061		(934		)	52,680
Income tax expense (benefit)	14,598		3,724		(1,795		)	16,527
Net income		$28,955		$6,337		$861			$36,153
Total assets at period end		$2,517,059		$50,297		$621,511			$3,188,867
Expenditures for long-lived assets	1,286		112		93			1,491