Sale of Business Line

12 Months Ended

Dec. 31, 2016

Sale of Business Line [Abstract]

Sale of Business Line

Sale of Business Line

On March 1, 2014, the Corporation sold its merchant processing service business line to a third party, resulting in a net gain of $6.3 million; after-tax $4.0 million, or 24 cents per diluted share.  In connection with the sale, Washington Trust incurred divestiture related costs of $355 thousand; after-tax $227 thousand, or 1 cent per diluted share, in the first quarter of 2014. The net proceeds received from the sale totaled $7.2 million, including $900 thousand of deferred revenue that can be earned over a 5-year period by providing business referrals to the buyer. We have earned and recognized annual revenue of $180 thousand in 2016, 2015 and 2014, which was included in other income in the Consolidated Statements of Income. As of December 31, 2016, $360 thousand of deferred revenue remained to be earned under this arrangement.