XML 36 R26.htm IDEA: XBRL DOCUMENT v3.4.0.3
Loans (Tables)
 3 Months Ended
Mar. 31, 2016
Receivables [Abstract]  
Summary of Loans
The following is a summary of loans:
(Dollars in thousands)
March 31, 2016
 
December 31, 2015
 
Amount

 
%

 
Amount

 
%

Commercial:
 
 
 
 
 
 
 
Mortgages (1)

$976,931

 
32
%
 

$931,953

 
31
%
Construction & development (2)
123,032

 
4

 
122,297

 
4

Commercial & industrial (3)
598,848

 
20

 
600,297

 
20

Total commercial
1,698,811

 
56

 
1,654,547

 
55

Residential real estate:
 
 
 
 
 
 
 
Mortgages
980,274

 
32

 
984,437

 
33

Homeowner construction
24,075

 
1

 
29,118

 
1

Total residential real estate
1,004,349

 
33

 
1,013,555

 
34

Consumer:
 
 
 
 
 
 
 
Home equity lines
258,513

 
8

 
255,565

 
8

Home equity loans
45,499

 
1

 
46,649

 
2

Other (4)
39,821

 
2

 
42,811

 
1

Total consumer
343,833

 
11

 
345,025

 
11

Total loans (5)

$3,046,993

 
100
%
 

$3,013,127

 
100
%
(1)
Loans primarily secured by income producing property.
(2)
Loans for construction of commercial properties, loans to developers for construction of residential properties and loans for land development.
(3)
Loans to businesses and individuals, a substantial portion of which are fully or partially collateralized by real estate.
(4)
Loans to individuals secured by general aviation aircraft and other personal installment loans.
(5)
Includes net unamortized loan origination costs of $2.6 million at both at March 31, 2016 and December 31, 2015 and net unamortized premiums on purchased loans of $78 thousand and $84 thousand, respectively, at March 31, 2016 and December 31, 2015.
Nonaccrual Loans
The following is a summary of nonaccrual loans, segregated by class of loans:
(Dollars in thousands)
Mar 31,
2016
 
Dec 31,
2015
Commercial:
 
 
 
Mortgages

$4,054

 

$5,711

Construction & development
—

 
—

Commercial & industrial
2,659

 
3,018

Residential real estate:
 
 
 
Mortgages
9,367

 
10,666

Homeowner construction
—

 
—

Consumer:
 
 
 
Home equity lines
316

 
528

Home equity loans
1,025

 
1,124

Other
4

 
—

Total nonaccrual loans

$17,425

 

$21,047

Accruing loans 90 days or more past due

$—

 

$—
Past Due Loans
Past due status is based on the contractual payment terms of the loan. The following tables present an age analysis of past due loans, segregated by class of loans:
(Dollars in thousands)
Days Past Due
 
 
 
 
 
 
March 31, 2016
30-59
 
60-89
 
Over 90
 
Total Past Due
 
Current
 
Total Loans
Commercial:
 
 
 
 
 
 
 
 
 
 
 
Mortgages

$510

 

$—

 

$4,054

 

$4,564

 

$972,367

 

$976,931

Construction & development
—

 
—

 
—

 
—

 
123,032

 
123,032

Commercial & industrial
268

 
1,568

 
1,070

 
2,906

 
595,942

 
598,848

Residential real estate:
 
 
 
 
 
 
 
 
 
 
 
Mortgages
2,695

 
2,026

 
3,982

 
8,703

 
971,571

 
980,274

Homeowner construction
—

 
—

 
—

 
—

 
24,075

 
24,075

Consumer:
 
 
 
 
 
 
 
 
 
 
 
Home equity lines
441

 
174

 
206

 
821

 
257,692

 
258,513

Home equity loans
436

 
373

 
463

 
1,272

 
44,227

 
45,499

Other
27

 
2

 
—

 
29

 
39,792

 
39,821

Total loans

$4,377

 

$4,143

 

$9,775

 

$18,295

 

$3,028,698

 

$3,046,993



(Dollars in thousands)
Days Past Due
 
 
 
 
 
 
December 31, 2015
30-59
 
60-89
 
Over 90
 
Total Past Due
 
Current
 
Total Loans
Commercial:
 
 
 
 
 
 
 
 
 
 
 
Mortgages

$51

 

$—

 

$4,504

 

$4,555

 

$927,398

 

$931,953

Construction & development
—

 
—

 
—

 
—

 
122,297

 
122,297

Commercial & industrial
405

 
9

 
48

 
462

 
599,835

 
600,297

Residential real estate:
 
 
 
 
 
 
 
 
 
 
 
Mortgages
3,028

 
2,964

 
3,294

 
9,286

 
975,151

 
984,437

Homeowner construction
—

 
—

 
—

 
—

 
29,118

 
29,118

Consumer:
 
 
 
 
 
 
 
 
 
 
 
Home equity lines
883

 
373

 
518

 
1,774

 
253,791

 
255,565

Home equity loans
748

 
490

 
222

 
1,460

 
45,189

 
46,649

Other
22

 
—

 
—

 
22

 
42,789

 
42,811

Total loans

$5,137

 

$3,836

 

$8,586

 

$17,559

 

$2,995,568

 

$3,013,127
Impaired Loans
The following is a summary of impaired loans:
(Dollars in thousands)
Recorded Investment (1)
 
Unpaid Principal
 
Related Allowance
 
Mar 31,
2016
 
Dec 31,
2015
 
Mar 31,
2016
 
Dec 31,
2015
 
Mar 31,
2016
 
Dec 31,
2015
No Related Allowance Recorded:
 
 
 
 
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
 
 
 
 
Mortgages

$4,054

 

$4,292

 

$4,898

 

$5,101

 

$—

 

$—

Construction & development
—

 
—

 
—

 
—

 
—

 
—

Commercial & industrial
1,323

 
1,849

 
1,430

 
1,869

 
—

 
—

Residential real estate:
 
 
 
 
 
 
 
 
 
 
 
Mortgages
8,049

 
8,441

 
8,167

 
8,826

 
—

 
—

Homeowner construction
—

 
—

 
—

 
—

 
—

 
—

Consumer:
 
 
 
 
 
 
 
 
 
 
 
Home equity lines
271

 
6

 
271

 
64

 
—

 
—

Home equity loans
673

 
530

 
685

 
539

 
—

 
—

Other
—

 
—

 
—

 
—

 
—

 
—

Subtotal
14,370

 
15,118

 
15,451

 
16,399

 
—

 
—

With Related Allowance Recorded:
 
 
 
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
 
 
 
 
Mortgages

$9,452

 

$10,873

 

$9,427

 

$10,855

 

$586

 

$1,633

Construction & development
—

 
—

 
—

 
—

 
—

 
—

Commercial & industrial
2,176

 
2,024

 
2,320

 
2,248

 
757

 
771

Residential real estate:
 
 
 
 
 
 
 
 
 
 
 
Mortgages
1,967

 
2,895

 
2,024

 
2,941

 
133

 
156

Homeowner construction
—

 
—

 
—

 
—

 
—

 
—

Consumer:
 
 
 
 
 
 
 
 
 
 
 
Home equity lines
45

 
522

 
45

 
522

 
—

 
2

Home equity loans
436

 
679

 
440

 
783

 
1

 
21

Other
147

 
145

 
147

 
144

 
—

 
—

Subtotal
14,223

 
17,138

 
14,403

 
17,493

 
1,477

 
2,583

Total impaired loans

$28,593

 

$32,256

 

$29,854

 

$33,892

 

$1,477

 

$2,583

Total:
 
 
 
 
 
 
 
 
 
 
 
Commercial

$17,005

 

$19,038

 

$18,075

 

$20,073

 

$1,343

 

$2,404

Residential real estate
10,016

 
11,336

 
10,191

 
11,767

 
133

 
156

Consumer
1,572

 
1,882

 
1,588

 
2,052

 
1

 
23

Total impaired loans

$28,593

 

$32,256

 

$29,854

 

$33,892

 

$1,477

 

$2,583

(1)
The recorded investment in impaired loans consists of unpaid principal balance, net of charge-offs, interest payments received applied to principal and unamortized deferred loan origination fees and costs. For impaired accruing loans (troubled debt restructurings for which management has concluded that the collectibility of the loan is not in doubt), the recorded investment also includes accrued interest.

The following table presents the average recorded investment balance of impaired loans and interest income recognized on impaired loans segregated by loan class. Prior to the third quarter of 2015, the Corporation had defined impaired loans to include nonaccrual commercial loans, troubled debt restructured loans and certain other loans that were individually evaluated for impairment. In the third quarter of 2015, the Corporation redefined impaired loans to include nonaccrual loans and troubled debt restructured loans. The redefinition of impaired loans resulted in well-secured nonaccrual residential real estate mortgage loans and consumer loans being classified as impaired loans in the third quarter of 2015. See further discussion on the redefinition of impaired loans in Washington Trust’s Form 10-K for the fiscal year ended December 31, 2015.
 
 
 
 
 
 
 
 
(Dollars in thousands)
Average Recorded Investment
 
Interest Income Recognized
Three months ended March 31,
2016
 
2015
 
2016
 
2015
Commercial:
 
 
 
 
 
 
 
Mortgages

$14,740

 

$14,942

 

$93

 

$79

Construction & development
—

 
—

 
—

 
—

Commercial & industrial
3,800

 
3,036

 
11

 
19

Residential real estate:


 


 


 


Mortgages
11,069

 
3,457

 
69

 
16

Homeowner construction
—

 
—

 
—

 
—

Consumer:


 


 


 


Home equity lines
671

 
247

 
2

 
—

Home equity loans
1,175

 
74

 
13

 
—

Other
145

 
146

 
2

 
3

Totals

$31,600

 

$21,902

 

$190

 

$117
Troubled Debt Restructurings Subsequent Default
The following table presents loans modified in a troubled debt restructuring within the previous twelve months for which there was a payment default:
 
 
 
 
 
 
 
 
(Dollars in thousands)
# of Loans
 
Recorded Investment (1)
Three months ended March 31,
2016
 
2015
 
2016
 
2015
Commercial:
 
 
 
 
 
 
 
Mortgages
—

 
—

 

$—

 

$—

Construction & development
—

 
—

 
—

 
—

Commercial & industrial
5

 
2

 
743

 
11

Residential real estate:
 
 


 
 
 
 
Mortgages
—

 
2

 
—

 
338

Homeowner construction
—

 
—

 
—

 
—

Consumer:
 
 
 
 
 
 
 
Home equity lines
—

 
—

 
—

 
—

Home equity loans
1

 
—

 
66

 
—

Other
—

 
—

 
—

 
—

Totals
6

 
4

 

$809

 

$349

(1)
The recorded investment in troubled debt restructurings consists of unpaid principal balance, net of charge-offs and unamortized deferred loan origination fees and costs. For accruing troubled debt restructured loans, the recorded investment also includes accrued interest.
Credit Quality Indicators - Commercial
The following table presents the commercial loan portfolio, segregated by category of credit quality indicator:
(Dollars in thousands)
Pass
 
Special Mention
 
Classified
 
Mar 31,
2016
 
Dec 31,
2015
 
Mar 31,
2016
 
Dec 31,
2015
 
Mar 31,
2016
 
Dec 31,
2015
Mortgages

$963,155

 

$914,774

 

$787

 

$3,035

 

$12,989

 

$14,144

Construction & development
123,032

 
122,297

 
—

 
—

 
—

 
—

Commercial & industrial
573,177

 
577,036

 
14,871

 
12,012

 
10,800

 
11,249

Total commercial loans

$1,659,364

 

$1,614,107

 

$15,658

 

$15,047

 

$23,789

 

$25,393
Credit Quality Indicators Residential & Consumer
The following table presents the residential and consumer loan portfolios, segregated by category of credit quality indicator:
(Dollars in thousands)
Current and Under 90 Days Past Due
 
Over 90 Days
Past Due
 
Mar 31,
2016
 
Dec 31,
2015
 
Mar 31,
2016
 
Dec 31,
2015
Residential real estate:
 
 
 
 
 
 
 
Accruing mortgages

$970,907

 

$973,771

 

$—

 

$—

Nonaccrual mortgages
5,385

 
7,372

 
3,982

 
3,294

Homeowner construction
24,075

 
29,118

 
—

 
—

Total residential loans

$1,000,367

 

$1,010,261

 

$3,982

 

$3,294

Consumer:
 
 
 
 
 
 
 
Home equity lines

$258,307

 

$255,047

 

$206

 

$518

Home equity loans
45,036

 
46,427

 
463

 
222

Other
39,821

 
42,811

 
—

 
—

Total consumer loans

$343,164

 

$344,285

 

$669

 

$740