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Loans (Tables)
 9 Months Ended
Sep. 30, 2020
Receivables [Abstract]  
Summary of Loans
The following is a summary of loans:
(Dollars in thousands)September 30,
2020		December 31, 2019
Commercial:
Commercial real estate (1)
$1,665,745 $1,547,572 
Commercial & industrial (2)
822,269 585,289 
Total commercial2,488,014 2,132,861 
Residential Real Estate:
Residential real estate (3)
1,506,726 1,449,090 
Consumer:
Home equity
268,551 290,874 
Other (4)
18,756 20,174 
Total consumer287,307 311,048 
Total loans (5)
$4,282,047 $3,892,999 
(1)Commercial real estate (“CRE”) consists of commercial mortgages primarily secured by income-producing property, as well as construction and development loans. Construction and development loans are made to businesses for land development or the on-site construction of industrial, commercial, or residential buildings.
(2)Commercial and industrial (“C&I”) consists of loans to businesses and individuals, a portion of which are fully or partially collateralized by real estate. C&I also includes $216.8 million of PPP loans as of September 30, 2020.
(3)Residential real estate consists of mortgage and homeowner construction loans secured by one- to four-family residential properties.
(4)Other consists of loans to individuals secured by general aviation aircraft and other personal installment loans.
(5)Includes net unamortized loan origination fees of $670 thousand at September 30, 2020 and net unamortized loan origination costs of $5.3 million, at December 31, 2019 and net unamortized premiums on purchased loans of $919 thousand and $995 thousand, respectively, at September 30, 2020 and December 31, 2019.
Past Due Loans The following tables present an age analysis of past due loans, segregated by class of loans:
(Dollars in thousands)Days Past Due
September 30, 202030-5960-89Over 90Total Past DueCurrentTotal Loans
Commercial:
Commercial real estate
$— $— $431 $431 $1,665,314 $1,665,745 
Commercial & industrial
21 — — 21 822,248 822,269 
Total commercial21 — 431 452 2,487,562 2,488,014 
Residential Real Estate:
Residential real estate
2,689 890 4,502 8,081 1,498,645 1,506,726 
Consumer:
Home equity
969 166 618 1,753 266,798 268,551 
Other
18 2 88 108 18,648 18,756 
Total consumer987 168 706 1,861 285,446 287,307 
Total loans$3,697 $1,058 $5,639 $10,394 $4,271,653 $4,282,047 
(Dollars in thousands)Days Past Due
December 31, 201930-5960-89Over 90Total Past DueCurrentTotal Loans
Commercial:
Commercial real estate
$830 $— $603 $1,433 $1,546,139 $1,547,572 
Commercial & industrial
1 — — 1 585,288 585,289 
Total commercial831 — 603 1,434 2,131,427 2,132,861 
Residential Real Estate:
Residential real estate
4,574 2,155 4,700 11,429 1,437,661 1,449,090 
Consumer:
Home equity
971 729 996 2,696 288,178 290,874 
Other
42 — 88 130 20,044 20,174 
Total consumer1,013 729 1,084 2,826 308,222 311,048 
Total loans$6,418 $2,884 $6,387 $15,689 $3,877,310 $3,892,999 
Nonaccrual Loans
The following is a summary of nonaccrual loans, segregated by class of loans:
(Dollars in thousands)Sep 30,
2020		Dec 31,
2019
Commercial:
Commercial real estate
$431 $603 
Commercial & industrial
— 657 
Total commercial431 1,260 
Residential Real Estate:
Residential real estate
12,792 14,297 
Consumer:
Home equity
1,429 1,763 
Other
88 88 
Total consumer1,517 1,851 
Total nonaccrual loans$14,740 $17,408 
Accruing loans 90 days or more past due$— $— 

For nonaccrual loans with a carrying value of $2.9 million as of September 30, 2020, no ACL was deemed necessary.

As of September 30, 2020 and December 31, 2019, nonaccrual loans secured by one- to four-family residential property amounting to $2.9 million and $5.8 million, respectively, were in process of foreclosure.

Nonaccrual loans of $5.9 million were current as to the payment of principal and interest at both September 30, 2020 and December 31, 2019.

There were no significant commitments to lend additional funds to borrowers whose loans were on nonaccrual status at September 30, 2020.

The following table presents interest income recognized on nonaccrual loans segregated by loan class:
(Dollars in thousands)Interest Income Recognized
Periods ended September 30, 2020Three MonthsNine Months
Commercial:
Commercial real estate
$— $— 
Commercial & industrial
— — 
Total commercial— — 
Residential Real Estate:
Residential real estate
70 341 
Consumer:
Home equity
11 51 
Other
— — 
Total consumer11 51 
Total$81 $392 
Summary of TDRs
The following table presents the recorded investment in TDRs and certain other information related to TDRs:
(Dollars in thousands)Sep 30,
2020		Dec 31,
2019
Accruing TDRs$5,756 $377 
Nonaccrual TDRs2,894 492 
Total TDRs$8,650 $869 
Specific reserves on TDRs included in the ACL on loans$101 $97 
Additional commitments to lend to borrowers with TDRs$— $— 

The Corporation has elected to account for eligible loan modifications under Section 4013 of the CARES Act. To be eligible, a loan modification must be (1) related to the COVID-19 pandemic; (2) executed on a loan that was not more than 30 days past due as of December 31, 2019; and (3) executed between March 1, 2020, and the earlier of (A) 60 days after the date of termination of the national emergency declared by the President on March 13, 2020 concerning the COVID-19 outbreak (the “national emergency”) or (B) December 31, 2020. Eligible loan modifications are not required to be classified as TDRs and will not be reported as past due provided that they are performing in accordance with the modified terms. Interest income will continue to be recognized in accordance with GAAP unless the loan is placed on nonaccrual status in accordance with the nonaccrual loans accounting policy described above. Through September 30, 2020, we have executed loan payment deferment modifications on 617 loans totaling $685.4 million. The majority of these modifications qualified as eligible loan modifications under Section 4013 of the CARES Act and therefore, were not required to be classified as TDRs and were not reported as past due. Seventeen of these modifications on loan balances of $7.8 million were past due before the COVID-19 pandemic and therefore, were classified as TDRs and were included in past due loans as of September 30, 2020. Washington Trust has active deferrals on 253 loans totaling $418.2 million as of September 30, 2020.
The following tables present loans modified as a TDR:
(Dollars in thousands)Outstanding Recorded Investment
# of LoansPre-ModificationsPost-Modifications
Three months ended September 30,202020192020201920202019
Commercial:
Commercial real estate
— — $— $— $— $— 
Commercial & industrial
— — — — — — 
Total commercial— — — — — — 
Residential Real Estate:
Residential real estate
4 — 2,092 — 2,092 — 
Consumer:
Home equity
1 — 71 — 71 — 
Other
— — — — — — 
Total consumer1 — $71 $— $71 $— 
Total5 — $2,163 $— $2,163 $— 

(Dollars in thousands)Outstanding Recorded Investment
# of LoansPre-ModificationsPost-Modifications
Nine months ended September 30, 202020192020201920202019
Commercial:
Commercial real estate
1 — $841 $— $841 $— 
Commercial & industrial
2 — 460 — 460 — 
Total commercial3 — 1,301 — 1,301 — 
Residential Real Estate:
Residential real estate
10 — 5,604 — 5,604 — 
Consumer:
Home equity
4 — 873 — 873 — 
Other
— — — — — — 
Total consumer4 — $873 $— $873 $— 
Total17 — $7,778 $— $7,778 $— 
TDRs by type of modification
The following table presents information on how loans were modified as a TDR:
(Dollars in thousands)Three MonthsNine Months
Periods ended September 30,2020201920202019
Below-market interest rate concession $— $— $— $— 
Payment deferral2,163 — 7,365 — 
Maturity / amortization concession— — — — 
Interest only payments— — — — 
Combination (1)
— — 413 — 
Total$2,163 $— $7,778 $— 
(1)    Loans included in this classification were modified with a combination of any two of the concessions listed in this table.
TDRs with payment default
The following tables present payment defaults on TDRs modified within the previous 12 months:
(Dollars in thousands)# of LoansRecorded Investment
Three months ended September 30,2020201920202019
Residential real estate:
Residential real estate1 — $903 $— 
Consumer:
Home equity1 — 47 — 
Other— — — — 
Totals2 — $950 $— 

(Dollars in thousands)# of LoansRecorded Investment
Nine months ended September 30, 2020201920202019
Residential real estate:
Residential real estate1 — $903 $— 
Consumer:
Home equity1 — 47 — 
Other— — — — 
Totals2 — $950 $— 
Collateral Dependent Individually Analyzed Loans
The following table presents the carrying value of collateral dependent individually analyzed loans:
(Dollars in thousands)
As of September 30, 2020Carrying ValueRelated Allowance
Commercial:
Commercial real estate (1)
$431 $146 
Commercial & industrial (2)
409 — 
Total commercial840 146 
Residential Real Estate:
Residential real estate (3)
5,845 — 
Consumer:
Home equity (3)
825 232 
Other
— — 
Total consumer825 232 
Total$7,510 $378 
(1)    Secured by income-producing property.
(2)    Secured by business assets.
(3)     Secured by one- to four-family residential properties.
Impaired Loans
Prior to January 1, 2020, impaired loans included nonaccrual loans and executed TDRs. The Corporation identified loss allocations for impaired loans on an individual loan basis. The following is a summary of impaired loans:
(Dollars in thousands)
As of December 31, 2019Recorded Investment (1)Unpaid PrincipalRelated Allowance
No Related Allowance Recorded
Commercial:
Commercial real estate
$— $— $— 
Commercial & industrial
— — — 
Total commercial— — — 
Residential Real Estate:
Residential real estate13,968 14,803 — 
Consumer:
Home equity
1,471 1,472 — 
Other
88 88 — 
Total consumer1,559 1,560 — 
Subtotal15,527 16,363 — 
With Related Allowance Recorded
Commercial:
Commercial real estate
$603 $926 $— 
Commercial & industrial
657 657 580 
Total commercial1,260 1,583 580 
Residential Real Estate:
Residential real estate687 714 95 
Consumer:
Home equity
292 291 291 
Other
18 18 2 
Total consumer310 309 293 
Subtotal2,257 2,606 968 
Total impaired loans$17,784 $18,969 $968 
Total:
Commercial$1,260 $1,583 $580 
Residential real estate14,655 15,517 95 
Consumer1,869 1,869 293 
Total impaired loans$17,784 $18,969 $968 
(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 accruing impaired loans (TDRs for which management has concluded that the collectibility of the loan is not in doubt), the recorded investment also includes accrued interest.
The following table presents the average recorded investment balance of impaired loans and interest income recognized on impaired loans segregated by loan class.
(Dollars in thousands)Three MonthsNine Months
For the periods ended September 30, 2019Average Recorded InvestmentInterest Income RecognizedAverage Recorded InvestmentInterest Income Recognized
Commercial:
Commercial real estate
$886 $— $929 $1 
Commercial & industrial
— — 2,835 103 
Total commercial886 — 3,764 104 
Residential Real Estate:
Residential real estate
12,017 109 10,972 331 
Consumer:
Home equity
1,414 16 1,409 43 
Other
108 3 55 2 
Total consumer1,522 19 1,464 45 
Total$14,425 $128 $16,200 $480 
Credit Quality Indicators
The following table summarizes the Corporation’s loan portfolio by credit quality indicator and loan portfolio segment:
(Dollars in thousands)Term Loans Amortized Cost by Origination Year
As of September 30, 202020202019201820172016PriorRevolving Loans Amortized CostRevolving Loans Converted to Term LoansTotal
Commercial:
CRE:
Pass
$231,992 $387,398 $317,206 $253,085 $158,862 $270,453 $14,778 $2,406 $1,636,180 
Special Mention
649 — 18,104 9,537 — 844 — — 29,134 
Classified
— — — — — 431 — — 431 
Total CRE
232,641 387,398 335,310 262,622 158,862 271,728 14,778 2,406 1,665,745 
C&I:
Pass
284,453 96,228 83,099 62,716 67,899 98,371 98,285 1,380 792,431 
Special Mention
1,398 573 — 2,429 293 15,007 3,273 68 23,041 
Classified
409 — — — — 6,388 — — 6,797 
Total C&I
286,260 96,801 83,099 65,145 68,192 119,766 101,558 1,448 822,269 
Residential Real Estate:
Residential real estate:
Current
351,153 300,217 176,465 179,310 145,739 345,761 — — 1,498,645 
Past Due
— 238 627 768 401 6,047 — — 8,081 
Total residential real estate
351,153 300,455 177,092 180,078 146,140 351,808 — — 1,506,726 
Consumer:
Home equity:
Current
8,821 8,247 4,425 1,858 1,379 4,432 225,650 11,986 266,798 
Past Due
— — — 50 — 63 489 1,151 1,753 
Total home equity
8,821 8,247 4,425 1,908 1,379 4,495 226,139 13,137 268,551 
Other:
Current
2,801 2,437 1,713 1,992 628 8,746 330 1 18,648 
Past Due
9 11 — — 88 — — — 108 
Total other
2,810 2,448 1,713 1,992 716 8,746 330 1 18,756 
Total Loans$881,685 $795,349 $601,639 $511,745 $375,289 $756,543 $342,805 $16,992 $4,282,047 

Consistent with industry practice, Washington Trust may renew commercial loans at or immediately prior to their maturity. In the table above, renewals subject to full credit evaluation before being granted are reported as originations in the period renewed.

The following table presents the commercial loan portfolio, segregated by category of credit quality indicator:
(Dollars in thousands)
As of December 31, 2019PassSpecial MentionClassified
Commercial:
Commercial real estate
$1,546,139 $830 $603 
Commercial & industrial
549,416 24,961 10,912 
Total commercial$2,095,555 $25,791 $11,515 
The following table presents the residential and consumer loan portfolios, segregated by category of credit quality indicator:
(Dollars in thousands)
As of December 31, 2019CurrentPast Due
Residential Real Estate:
Residential real estate$1,437,661 $11,429 
Consumer:
Home equity
$288,178 $2,696 
Other
20,044 130 
Total consumer$308,222 $2,826