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Loans (Tables)
 6 Months Ended
Jun. 30, 2016
Receivables [Abstract]  
Summary of Loans
The following is a summary of loans:
(Dollars in thousands)
June 30, 2016
 
December 31, 2015
 
Amount

 
%

 
Amount

 
%

Commercial:
 
 
 
 
 
 
 
Mortgages (1)

$1,074,747

 
35
%
 

$931,953

 
31
%
Construction & development (2)
81,812

 
3

 
122,297

 
4

Commercial & industrial (3)
575,661

 
18

 
600,297

 
20

Total commercial
1,732,220

 
56

 
1,654,547

 
55

Residential real estate:
 
 
 
 
 
 
 
Mortgages
978,399

 
32

 
984,437

 
33

Homeowner construction
26,637

 
1

 
29,118

 
1

Total residential real estate
1,005,036

 
33

 
1,013,555

 
34

Consumer:
 
 
 
 
 
 
 
Home equity lines
260,541

 
8

 
255,565

 
8

Home equity loans
39,572

 
1

 
46,649

 
2

Other (4)
43,515

 
2

 
42,811

 
1

Total consumer
343,628

 
11

 
345,025

 
11

Total loans (5)

$3,080,884

 
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 June 30, 2016 and December 31, 2015 and net unamortized premiums on purchased loans of $171 thousand and $84 thousand, respectively, at June 30, 2016 and December 31, 2015.
Nonaccrual Loans
The following is a summary of nonaccrual loans, segregated by class of loans:
(Dollars in thousands)
Jun 30,
2016
 
Dec 31,
2015
Commercial:
 
 
 
Mortgages

$4,054

 

$5,711

Construction & development
—

 
—

Commercial & industrial
1,204

 
3,018

Residential real estate:
 
 
 
Mortgages
10,409

 
10,666

Homeowner construction
—

 
—

Consumer:
 
 
 
Home equity lines
315

 
528

Home equity loans
1,152

 
1,124

Other
114

 
—

Total nonaccrual loans

$17,248

 

$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
 
 
 
 
 
 
June 30, 2016
30-59
 
60-89
 
Over 90
 
Total Past Due
 
Current
 
Total Loans
Commercial:
 
 
 
 
 
 
 
 
 
 
 
Mortgages

$8

 

$—

 

$4,054

 

$4,062

 

$1,070,685

 

$1,074,747

Construction & development
—

 
—

 
—

 
—

 
81,812

 
81,812

Commercial & industrial
46

 
735

 
1,197

 
1,978

 
573,683

 
575,661

Residential real estate:
 
 
 
 
 
 
 
 
 
 
 
Mortgages
3,853

 
1,113

 
3,927

 
8,893

 
969,506

 
978,399

Homeowner construction
—

 
—

 
—

 
—

 
26,637

 
26,637

Consumer:
 
 
 
 
 
 
 
 
 
 
 
Home equity lines
458

 
101

 
34

 
593

 
259,948

 
260,541

Home equity loans
513

 
666

 
300

 
1,479

 
38,093

 
39,572

Other
11

 
8

 
110

 
129

 
43,386

 
43,515

Total loans

$4,889

 

$2,623

 

$9,622

 

$17,134

 

$3,063,750

 

$3,080,884



(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
 
Jun 30,
2016
 
Dec 31,
2015
 
Jun 30,
2016
 
Dec 31,
2015
 
Jun 30,
2016
 
Dec 31,
2015
No Related Allowance Recorded:
 
 
 
 
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
 
 
 
 
Mortgages

$—

 

$4,292

 

$—

 

$5,101

 

$—

 

$—

Construction & development
—

 
—

 
—

 
—

 
—

 
—

Commercial & industrial
1,524

 
1,849

 
1,640

 
1,869

 
—

 
—

Residential real estate:
 
 
 
 
 
 
 
 
 
 
 
Mortgages
12,243

 
8,441

 
12,337

 
8,826

 
—

 
—

Homeowner construction
—

 
—

 
—

 
—

 
—

 
—

Consumer:
 
 
 
 
 
 
 
 
 
 
 
Home equity lines
305

 
6

 
305

 
64

 
—

 
—

Home equity loans
794

 
530

 
800

 
539

 
—

 
—

Other
110

 
—

 
110

 
—

 
—

 
—

Subtotal
14,976

 
15,118

 
15,192

 
16,399

 
—

 
—

With Related Allowance Recorded:
 
 
 
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
 
 
 
 
Mortgages

$13,505

 

$10,873

 

$14,325

 

$10,855

 

$714

 

$1,633

Construction & development
—

 
—

 
—

 
—

 
—

 
—

Commercial & industrial
484

 
2,024

 
534

 
2,248

 
23

 
771

Residential real estate:
 
 
 
 
 
 
 
 
 
 
 
Mortgages
2,107

 
2,895

 
2,171

 
2,941

 
223

 
156

Homeowner construction
—

 
—

 
—

 
—

 
—

 
—

Consumer:
 
 
 
 
 
 
 
 
 
 
 
Home equity lines
10

 
522

 
10

 
522

 
—

 
2

Home equity loans
440

 
679

 
453

 
783

 
46

 
21

Other
35

 
145

 
34

 
144

 
5

 
—

Subtotal
16,581

 
17,138

 
17,527

 
17,493

 
1,011

 
2,583

Total impaired loans

$31,557

 

$32,256

 

$32,719

 

$33,892

 

$1,011

 

$2,583

Total:
 
 
 
 
 
 
 
 
 
 
 
Commercial

$15,513

 

$19,038

 

$16,499

 

$20,073

 

$737

 

$2,404

Residential real estate
14,350

 
11,336

 
14,508

 
11,767

 
223

 
156

Consumer
1,694

 
1,882

 
1,712

 
2,052

 
51

 
23

Total impaired loans

$31,557

 

$32,256

 

$32,719

 

$33,892

 

$1,011

 

$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 tables present 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 June 30,
2016
 
2015
 
2016
 
2015
Commercial:
 
 
 
 
 
 
 
Mortgages

$13,677

 

$14,556

 

$87

 

$76

Construction & development
—

 
—

 
—

 
—

Commercial & industrial
3,290

 
3,077

 
10

 
41

Residential real estate:


 


 


 


Mortgages
10,903

 
3,251

 
98

 
24

Homeowner construction
—

 
—

 
—

 
—

Consumer:


 


 


 


Home equity lines
315

 
278

 
6

 
—

Home equity loans
1,216

 
78

 
11

 
1

Other
151

 
191

 
2

 
2

Totals

$29,552

 

$21,431

 

$214

 

$144




 
 
 
 
 
 
 
 
(Dollars in thousands)
Average Recorded Investment
 
Interest Income Recognized
Six months ended June 30,
2016
 
2015
 
2016
 
2015
Commercial:
 
 
 
 
 
 
 
Mortgages

$14,208

 

$14,748

 

$180

 

$155

Construction & development
—

 
—

 
—

 
—

Commercial & industrial
3,545

 
3,057

 
21

 
60

Residential real estate:
 
 
 
 
 
 
 
Mortgages
10,986

 
3,354

 
167

 
40

Homeowner construction
—

 
—

 
—

 
—

Consumer:
 
 
 
 
 
 
 
Home equity lines
493

 
263

 
8

 
—

Home equity loans
1,195

 
76

 
24

 
1

Other
148

 
169

 
4

 
5

Totals

$30,575

 

$21,667

 

$404

 

$261
Troubled Debt Restructurings on Financing Receivables
The following tables present loans modified as a troubled debt restructuring:
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
Outstanding Recorded Investment (1)
 
# of Loans
 
Pre-Modifications
 
Post-Modifications
Three months ended June 30,
2016
 
2015
 
2016
 
2015
 
2016
 
2015
Commercial:
 
 
 
 
 
 
 
 
 
 
 
Mortgages
—

 
—

 

$—

 

$—

 

$—

 

$—

Construction & development
—

 
—

 
—

 
—

 
—

 
—

Commercial & industrial
1

 
2

 
133

 
284

 
133

 
284

Residential real estate:
 
 
 
 
 
 
 
 
 
 
 
Mortgages
1

 
—

 
3,550

 
—

 
3,550

 
—

Homeowner construction
—

 
—

 
—

 
—

 
—

 
—

Consumer:
 
 
 
 
 
 
 
 
 
 
 
Home equity lines
—

 
—

 
—

 
—

 
—

 
—

Home equity loans
—

 
1

 
—

 
70

 
—

 
70

Other
—

 
—

 
—

 
—

 
—

 
—

Totals
2

 
3

 

$3,683

 

$354

 

$3,683

 

$354


(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, at the time of the restructuring. For accruing troubled debt restructured loans, the recorded investment
also includes accrued interest.
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
Outstanding Recorded Investment (1)
 
# of Loans
 
Pre-Modifications
 
Post-Modifications
Six months ended June 30,
2016
 
2015
 
2016
 
2015
 
2016
 
2015
Commercial:
 
 
 
 
 
 
 
 
 
 
 
Mortgages
—

 
—

 

$—

 

$—

 

$—

 

$—

Construction & development
—

 
—

 
—

 
—

 
—

 
—

Commercial & industrial
1

 
3

 
133

 
584

 
133

 
584

Residential real estate:
 
 
 
 
 
 
 
 
 
 
 
Mortgages
1

 
1

 
3,550

 
93

 
3,550

 
93

Homeowner construction
—

 
—

 
—

 
—

 
—

 
—

Consumer:
 
 
 
 
 
 
 
 
 
 
 
Home equity lines
—

 
—

 
—

 
—

 
—

 
—

Home equity loans
—

 
1

 
—

 
70

 
—

 
70

Other
—

 
1

 
—

 
35

 
—

 
35

Totals
2

 
6

 

$3,683

 

$782

 

$3,683

 

$782

(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, at the time of the restructuring. For accruing troubled debt restructured loans, the recorded investment
also includes accrued interest.
Schedule of How Loans Were Modified as Troubled Debt Restructuring
The following table presents information on how loans were modified as a troubled debt restructuring:
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
 
 
 
 
 
 
Three months
 
Six months
Periods ended June 30,
2016
 
2015
 
2016

 
2015

Below-market interest rate concession

$—

 

$—

 

$—

 

$—

Payment deferral
—

 
284

 
—

 
619

Maturity / amortization concession
133

 
70

 
133

 
163

Interest only payments
3,550

 
—

 
3,550

 
—

Total

$3,683

 

$354

 

$3,683

 

$782
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
 
Jun 30,
2016
 
Dec 31,
2015
 
Jun 30,
2016
 
Dec 31,
2015
 
Jun 30,
2016
 
Dec 31,
2015
Commercial:
 
 
 
 
 
 
 
 
 
 
 
Mortgages

$1,061,090

 

$914,774

 

$1,106

 

$3,035

 

$12,551

 

$14,144

Construction & development
81,812

 
122,297

 
—

 
—

 
—

 
—

Commercial & industrial
550,465

 
577,036

 
15,863

 
12,012

 
9,333

 
11,249

Total commercial loans

$1,693,367

 

$1,614,107

 

$16,969

 

$15,047

 

$21,884

 

$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
 
Jun 30,
2016
 
Dec 31,
2015
 
Jun 30,
2016
 
Dec 31,
2015
Residential real estate:
 
 
 
 
 
 
 
Accruing mortgages

$967,990

 

$973,771

 

$—

 

$—

Nonaccrual mortgages
6,482

 
7,372

 
3,927

 
3,294

Homeowner construction
26,637

 
29,118

 
—

 
—

Total residential loans

$1,001,109

 

$1,010,261

 

$3,927

 

$3,294

Consumer:
 
 
 
 
 
 
 
Home equity lines

$260,507

 

$255,047

 

$34

 

$518

Home equity loans
39,272

 
46,427

 
300

 
222

Other
43,405

 
42,811

 
110

 
—

Total consumer loans

$343,184

 

$344,285

 

$444

 

$740