Business Segments

3 Months Ended

Mar. 31, 2016

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 activities; deposit generation; 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, 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,	2016		2015		2016			2015			2016		2015		2016		2015
Net interest income (expense)		$22,607		$20,625		($18	)		($14	)		$5,146		$5,091		$27,735		$25,702
Provision for loan losses	500		—		—			—			—		—		500		—
Net interest income (expense) after provision for loan losses	22,107		20,625		(18		)	(14		)	5,146		5,091		27,235		25,702
Noninterest income	4,940		5,078		9,174			8,435			520		507		14,634		14,020
Noninterest expenses:
Depreciation and amortization expense	687		671		469			306			55		60		1,211		1,037
Other noninterest expenses	13,991		13,587		6,799			5,915			3,449		2,992		24,239		22,494
Total noninterest expenses	14,678		14,258		7,268			6,221			3,504		3,052		25,450		23,531
Income before income taxes	12,369		11,445		1,888			2,200			2,162		2,546		16,419		16,191
Income tax expense	4,255		3,730		733			844			496		607		5,484		5,181
Net income		$8,114		$7,715		$1,155			$1,356			$1,666		$1,939		$10,935		$11,010
Total assets at period end		$3,178,248		$3,015,691		$64,496			$52,568			$595,466		$534,255		$3,838,210		$3,602,514
Expenditures for long-lived assets		$1,019		$1,067		$84			$114			$74		$45		$1,177		$1,226