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.

Commercial Banking

The Commercial Banking segment includes commercial, residential and consumer lending activities; 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 BOLI, as well as administrative and executive expenses not allocated to the operating segments and the residual impact of methodology allocations such as FTP offsets.

The following tables present the statement of operations and total assets for Washington Trust’s reportable segments:



(Dollars in thousands)
Year ended December 31, 2017	Commercial Banking		Wealth Management Services			Corporate		Consolidated Total
Net interest income (expense)		$98,736		($167	)		$20,962		$119,531
Provision for loan losses	2,600		—			—		2,600
Net interest income (expense) after provision for loan losses	96,136		(167		)	20,962		116,931
Noninterest income	23,244		39,346			2,219		64,809
Noninterest expenses:
Depreciation and amortization expense	2,604		1,689			196		4,489
Other noninterest expenses	60,828		26,718			12,065		99,611
Total noninterest expenses	63,432		28,407			12,261		104,100
Income before income taxes	55,948		10,772			10,920		77,640
Income tax expense	23,876		3,795			4,044		31,715
Net income		$32,072		$6,977			$6,876		$45,925

Total assets at period end		$3,491,845		$66,083			$971,922		$4,529,850
Expenditures for long-lived assets	2,224		360			195		2,779



(Dollars in thousands)
Year ended December 31, 2016	Commercial Banking		Wealth Management Services			Corporate		Consolidated Total
Net interest income (expense)		$91,221		($66	)		$19,323		$110,478
Provision for loan losses	5,650		—			—		5,650
Net interest income (expense) after provision for loan losses	85,571		(66		)	19,323		104,828
Noninterest income	24,783		37,569			2,777		65,129
Noninterest expenses:
Depreciation and amortization expense	2,771		1,940			224		4,935
Other noninterest expenses	58,452		25,239			12,477		96,168
Total noninterest expenses	61,223		27,179			12,701		101,103
Income before income taxes	49,131		10,324			9,399		68,854
Income tax expense	16,790		3,692			1,891		22,373
Net income		$32,341		$6,632			$7,508		$46,481

Total assets at period end		$3,354,633		$64,625			$961,857		$4,381,115
Expenditures for long-lived assets	2,267		464			381		3,112



(Dollars in thousands)
Year ended December 31, 2015	Commercial Banking		Wealth Management Services			Corporate		Consolidated Total
Net interest income		$84,757		($47	)		$19,272		$103,982
Provision for loan losses	1,050		—			—		1,050
Net interest income (expense) after provision for loan losses	83,707		(47		)	19,272		102,932
Noninterest income	20,618		35,416			2,306		58,340
Noninterest expenses:
Depreciation and amortization expense	2,584		1,488			213		4,285
Other noninterest expenses	55,203		25,632			11,809		92,644
Total noninterest expenses	57,787		27,120			12,022		96,929
Income before income taxes	46,538		8,249			9,556		64,343
Income tax expense	15,330		3,475			2,073		20,878
Net income		$31,208		$4,774			$7,483		$43,465

Total assets at period end		$3,152,231		$63,801			$555,572		$3,771,604
Expenditures for long-lived assets	4,714		411			354		5,479