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

 
%

 
Amount

 
%

Commercial:
 
 
 
 
 
 
 
Mortgages (1)

$1,086,175

 
34
%
 

$931,953

 
31
%
Construction & development (2)
98,735

 
3

 
122,297

 
4

Commercial & industrial (3)
572,305

 
18

 
600,297

 
20

Total commercial
1,757,215

 
55

 
1,654,547

 
55

Residential real estate:
 
 
 
 
 
 
 
Mortgages
1,052,829

 
33

 
984,437

 
33

Homeowner construction
27,058

 
1

 
29,118

 
1

Total residential real estate
1,079,887

 
34

 
1,013,555

 
34

Consumer:
 
 
 
 
 
 
 
Home equity lines
265,238

 
8

 
255,565

 
8

Home equity loans
38,264

 
1

 
46,649

 
2

Other (4)
40,751

 
2

 
42,811

 
1

Total consumer
344,253

 
11

 
345,025

 
11

Total loans (5)

$3,181,355

 
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 $2.8 million and $2.6 million, respectively, at September 30, 2016 and December 31, 2015 and net unamortized premiums on purchased loans of $641 thousand and $84 thousand, respectively, at September 30, 2016 and December 31, 2015.
Nonaccrual Loans
The following is a summary of nonaccrual loans, segregated by class of loans:
(Dollars in thousands)
Sep 30,
2016
 
Dec 31,
2015
Commercial:
 
 
 
Mortgages

$10,357

 

$5,711

Construction & development
—

 
—

Commercial & industrial
1,744

 
3,018

Residential real estate:
 
 
 
Mortgages
10,140

 
10,666

Homeowner construction
—

 
—

Consumer:
 
 
 
Home equity lines
271

 
528

Home equity loans
1,322

 
1,124

Other
116

 
—

Total nonaccrual loans

$23,950

 

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

$—

 

$2,497

 

$7,855

 

$10,352

 

$1,075,823

 

$1,086,175

Construction & development
—

 
—

 
—

 
—

 
98,735

 
98,735

Commercial & industrial
—

 
—

 
1,047

 
1,047

 
571,258

 
572,305

Residential real estate:
 
 
 
 
 
 
 
 
 
 
 
Mortgages
2,737

 
860

 
4,694

 
8,291

 
1,044,538

 
1,052,829

Homeowner construction
—

 
—

 
—

 
—

 
27,058

 
27,058

Consumer:
 
 
 
 
 
 
 
 
 
 
 
Home equity lines
110

 
—

 
—

 
110

 
265,128

 
265,238

Home equity loans
412

 
166

 
731

 
1,309

 
36,955

 
38,264

Other
35

 
2

 
109

 
146

 
40,605

 
40,751

Total loans

$3,294

 

$3,525

 

$14,436

 

$21,255

 

$3,160,100

 

$3,181,355


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

$3,980

 

$4,292

 

$4,903

 

$5,101

 

$—

 

$—

Construction & development
—

 
—

 
—

 
—

 
—

 
—

Commercial & industrial
1,945

 
1,849

 
2,056

 
1,869

 
—

 
—

Residential real estate:
 
 
 
 
 
 
 
 
 
 
 
Mortgages
13,029

 
8,441

 
13,200

 
8,826

 
—

 
—

Homeowner construction
—

 
—

 
—

 
—

 
—

 
—

Consumer:
 
 
 
 
 
 
 
 
 
 
 
Home equity lines
271

 
6

 
271

 
64

 
—

 
—

Home equity loans
1,323

 
530

 
1,344

 
539

 
—

 
—

Other
112

 
—

 
112

 
—

 
—

 
—

Subtotal
20,660

 
15,118

 
21,886

 
16,399

 
—

 
—

With Related Allowance Recorded:
 
 
 
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
 
 
 
 
Mortgages

$7,567

 

$10,873

 

$9,427

 

$10,855

 

$972

 

$1,633

Construction & development
—

 
—

 
—

 
—

 
—

 
—

Commercial & industrial
460

 
2,024

 
511

 
2,248

 
15

 
771

Residential real estate:
 
 
 
 
 
 
 
 
 
 
 
Mortgages
1,047

 
2,895

 
1,073

 
2,941

 
201

 
156

Homeowner construction
—

 
—

 
—

 
—

 
—

 
—

Consumer:
 
 
 
 
 
 
 
 
 
 
 
Home equity lines
—

 
522

 
—

 
522

 
—

 
2

Home equity loans
79

 
679

 
79

 
783

 
1

 
21

Other
34

 
145

 
33

 
144

 
5

 
—

Subtotal
9,187

 
17,138

 
11,123

 
17,493

 
1,194

 
2,583

Total impaired loans

$29,847

 

$32,256

 

$33,009

 

$33,892

 

$1,194

 

$2,583

Total:
 
 
 
 
 
 
 
 
 
 
 
Commercial

$13,952

 

$19,038

 

$16,897

 

$20,073

 

$987

 

$2,404

Residential real estate
14,076

 
11,336

 
14,273

 
11,767

 
201

 
156

Consumer
1,819

 
1,882

 
1,839

 
2,052

 
6

 
23

Total impaired loans

$29,847

 

$32,256

 

$33,009

 

$33,892

 

$1,194

 

$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 September 30,
2016
 
2015
 
2016
 
2015
Commercial:
 
 
 
 
 
 
 
Mortgages

$13,159

 

$14,583

 

$40

 

$82

Construction & development
—

 
—

 
—

 
—

Commercial & industrial
2,342

 
3,376

 
21

 
29

Residential real estate:


 


 


 


Mortgages
13,962

 
4,484

 
86

 
27

Homeowner construction
—

 
—

 
—

 
—

Consumer:


 


 


 


Home equity lines
297

 
157

 
2

 
1

Home equity loans
1,328

 
515

 
9

 
3

Other
145

 
354

 
3

 
2

Totals

$31,233

 

$23,469

 

$161

 

$144




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

$13,856

 

$14,692

 

$220

 

$237

Construction & development
—

 
—

 
—

 
—

Commercial & industrial
3,141

 
3,164

 
42

 
89

Residential real estate:
 
 
 
 
 
 
 
Mortgages
11,985

 
3,735

 
253

 
67

Homeowner construction
—

 
—

 
—

 
—

Consumer:
 
 
 
 
 
 
 
Home equity lines
427

 
227

 
10

 
1

Home equity loans
1,240

 
224

 
33

 
4

Other
147

 
231

 
7

 
7

Totals

$30,796

 

$22,273

 

$565

 

$405
Loans Modified as Troubled Debt Restructurings
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 September 30,
2016
 
2015
 
2016
 
2015
 
2016
 
2015
Commercial:
 
 
 
 
 
 
 
 
 
 
 
Mortgages
—

 
1

 

$—

 

$1,190

 

$—

 

$1,190

Construction & development
—

 
—

 
—

 
—

 
—

 
—

Commercial & industrial
5

 
—

 
914

 
—

 
914

 
—

Residential real estate:
 
 
 
 
 
 
 
 
 
 
 
Mortgages
—

 
2

 
—

 
526

 
—

 
526

Homeowner construction
—

 
—

 
—

 
—

 
—

 
—

Consumer:
 
 
 
 
 
 
 
 
 
 
 
Home equity lines
—

 
—

 
—

 
—

 
—

 
—

Home equity loans
—

 
—

 
—

 
—

 
—

 
—

Other
—

 
—

 
—

 
—

 
—

 
—

Totals
5

 
3

 

$914

 

$1,716

 

$914

 

$1,716


(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
Nine months ended September 30,
2016
 
2015
 
2016
 
2015
 
2016
 
2015
Commercial:
 
 
 
 
 
 
 
 
 
 
 
Mortgages
—

 
1

 

$—

 

$1,190

 

$—

 

$1,190

Construction & development
—

 
—

 
—

 
—

 
—

 
—

Commercial & industrial
6

 
3

 
1,047

 
584

 
1,047

 
584

Residential real estate:
 
 
 
 
 
 
 
 
 
 
 
Mortgages
1

 
3

 
3,550

 
619

 
3,550

 
619

Homeowner construction
—

 
—

 
—

 
—

 
—

 
—

Consumer:
 
 
 
 
 
 
 
 
 
 
 
Home equity lines
—

 
—

 
—

 
—

 
—

 
—

Home equity loans
—

 
1

 
—

 
70

 
—

 
70

Other
—

 
1

 
—

 
35

 
—

 
35

Totals
7

 
9

 

$4,597

 

$2,498

 

$4,597

 

$2,498

(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
 
Nine months
Periods ended September 30,
2016
 
2015
 
2016
 
2015
Below-market interest rate concession

$—

 

$—

 

$—

 

$—

Payment deferral
—

 
526

 
—

 
1,145

Maturity / amortization concession
324

 
—

 
457

 
163

Interest only payments
—

 
—

 
3,550

 
—

Combination (1)
590

 
1,190

 
590

 
1,190

Total

$914

 

$1,716

 

$4,597

 

$2,498

(1)
Loans included in this classification were modified with a combination of any two of the concessions listed in this table.
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
 
Sep 30,
2016
 
Dec 31,
2015
 
Sep 30,
2016
 
Dec 31,
2015
 
Sep 30,
2016
 
Dec 31,
2015
Commercial:
 
 
 
 
 
 
 
 
 
 
 
Mortgages

$1,074,473

 

$914,774

 

$1,099

 

$3,035

 

$10,603

 

$14,144

Construction & development
98,735

 
122,297

 
—

 
—

 
—

 
—

Commercial & industrial
548,154

 
577,036

 
15,465

 
12,012

 
8,686

 
11,249

Total commercial loans

$1,721,362

 

$1,614,107

 

$16,564

 

$15,047

 

$19,289

 

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

$1,042,689

 

$973,771

 

$—

 

$—

Nonaccrual mortgages
5,446

 
7,372

 
4,694

 
3,294

Homeowner construction
27,058

 
29,118

 
—

 
—

Total residential loans

$1,075,193

 

$1,010,261

 

$4,694

 

$3,294

Consumer:
 
 
 
 
 
 
 
Home equity lines

$265,238

 

$255,047

 

$—

 

$518

Home equity loans
37,533

 
46,427

 
731

 
222

Other
40,642

 
42,811

 
109

 
—

Total consumer loans

$343,413

 

$344,285

 

$840

 

$740