Business Segments

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Business Segments

Business Segments

The Corporation manages its operations through two reportable business segments, consisting of Commercial Banking and Wealth Management Services.

In the fourth quarter of 2021 the Corporation re-assessed its reportable business segments and related allocation methodology in connection with the implementation of a new budgeting and profitability system in the same period. Management determined it was appropriate to allocate activity previously reported in the Corporate Unit to the Commercial Banking and Wealth Management Services operating segments. The Corporate Unit had included activities related to the Treasury function, which is responsible for managing the investment portfolio and wholesale funding needs, as well as certain administrative and executive expenses that were not previously allocated to the operating segments. The prior year segment information contained within this report has been restated to reflect this change to reportable business segments and related allocation methodology.

Commercial Banking

The Commercial Banking segment includes commercial, residential and consumer lending activities; mortgage banking activities; deposit generation; cash management activities; banking activities, including customer support and the operation of ATMs, telephone banking, internet banking and mobile banking services; as well as investment portfolio and wholesale funding activities.

Wealth Management Services

The Wealth Management Services segment includes investment management; holistic financial planning services; personal trust and estate services, including services as trustee, personal representative, custodian and guardian; settlement of decedents’ estates; and institutional trust services, including custody and fiduciary services.

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

(Dollars in thousands)
Year ended December 31, 2021	Commercial Banking	Wealth Management Services	Consolidated Total
Net interest income (expense)	$141,493	($58)	$141,435
Provision for credit losses	(4,822)	—	(4,822)
Net interest income (expense) after provision for credit losses	146,315	(58)	146,257
Noninterest income	44,748	42,646	87,394
Noninterest expenses:
Depreciation and amortization expense	2,827	1,474	4,301
Other noninterest expenses	101,029	30,134	131,163
Total noninterest expenses	103,856	31,608	135,464
Income before income taxes	87,207	10,980	98,187
Income tax expense	18,575	2,742	21,317
Net income	$68,632	$8,238	$76,870
Total assets at period end	$5,776,754	$74,373	$5,851,127
Expenditures for long-lived assets	3,246	244	3,490

(Dollars in thousands)
Year ended December 31, 2020	Commercial Banking	Wealth Management Services	Consolidated Total
Net interest income (expense)	$127,545	($101)	$127,444
Provision for loan losses	12,342	—	12,342
Net interest income (expense) after provision for loan losses	115,203	(101)	115,102
Noninterest income	63,612	35,830	99,442
Noninterest expenses:
Depreciation and amortization expense	2,573	1,517	4,090
Other noninterest expenses	91,555	29,739	121,294
Total noninterest expenses	94,128	31,256	125,384
Income before income taxes	84,687	4,473	89,160
Income tax expense	17,989	1,342	19,331
Net income	$66,698	$3,131	$69,829
Total assets at period end	$5,639,669	$73,500	$5,713,169
Expenditures for long-lived assets	3,125	281	3,406

(Dollars in thousands)
Year ended December 31, 2019	Commercial Banking	Wealth Management Services	Consolidated Total
Net interest income (expense)	$133,762	($348)	$133,414
Provision for loan losses	1,575	—	1,575
Net interest income (expense) after provision for loan losses	132,187	(348)	131,839
Noninterest income	29,972	37,108	67,080
Noninterest expenses:
Depreciation and amortization expense	2,681	1,553	4,234
Other noninterest expenses	78,549	27,957	106,506
Total noninterest expenses	81,230	29,510	110,740
Income before income taxes	80,929	7,250	88,179
Income tax expense	17,121	1,940	19,061
Net income	$63,808	$5,310	$69,118
Total assets at period end	$5,219,578	$73,081	$5,292,659
Expenditures for long-lived assets	2,610	522	3,132