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, 2018	Commercial Banking		Wealth Management Services			Corporate		Consolidated Total
Net interest income (expense)		$106,668		($334	)		$25,956		$132,290
Provision for loan losses	1,550		—			—		1,550
Net interest income (expense) after provision for loan losses	105,118		(334		)	25,956		130,740
Noninterest income	21,509		38,341			2,264		62,114
Noninterest expenses:
Depreciation and amortization expense	2,589		1,501			171		4,261
Other noninterest expenses	62,673		26,222			13,006		101,901
Total noninterest expenses	65,262		27,723			13,177		106,162
Income before income taxes	61,365		10,284			15,043		86,692
Income tax expense	13,149		2,577			2,534		18,260
Net income		$48,216		$7,707			$12,509		$68,432

Total assets at period end		$3,804,021		$71,254			$1,135,491		$5,010,766
Expenditures for long-lived assets	3,415		407			152		3,974



(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		$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