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Loans (Tables)
 12 Months Ended
Dec. 31, 2021
Receivables [Abstract]  
Summary of Loans
The following is a summary of loans:
(Dollars in thousands)
December 31,20212020
Commercial:
Commercial real estate (1)
$1,639,062 $1,633,024 
Commercial & industrial (2)
641,555 817,408 
Total commercial2,280,617 2,450,432 
Residential Real Estate:
Residential real estate (3)
1,726,975 1,467,312 
Consumer:
Home equity
247,697 259,185 
Other (4)
17,636 19,061 
Total consumer265,333 278,246 
Total loans (5)
$4,272,925 $4,195,990 
(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 & 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 $38.0 million and $199.8 million, respectively, of PPP loans as of December 31, 2021 and 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 costs of $6.7 million and $1.5 million, respectively, at December 31, 2021 and 2020 and net unamortized premiums on loans purchased from and serviced by other financial institutions of $414 thousand and $787 thousand, respectively, at December 31, 2021 and 2020.
Past Due Loans The following tables present an aging analysis of past due loans, segregated by class of loans:
(Dollars in thousands)Days Past Due
December 31, 202130-5960-89Over 90Total Past DueCurrentTotal Loans
Commercial:
Commercial real estate
$— $— $— $— $1,639,062 $1,639,062 
Commercial & industrial
3 — — 3 641,552 641,555 
Total commercial3 — — 3 2,280,614 2,280,617 
Residential Real Estate:
Residential real estate
1,784 3,176 4,662 9,622 1,717,353 1,726,975 
Consumer:
Home equity
580 77 108 765 246,932 247,697 
Other
21 — — 21 17,615 17,636 
Total consumer601 77 108 786 264,547 265,333 
Total loans$2,388 $3,253 $4,770 $10,411 $4,262,514 $4,272,925 

(Dollars in thousands)Days Past Due
December 31, 202030-5960-89Over 90Total Past DueCurrentTotal Loans
Commercial:
Commercial real estate
$265 $— $— $265 $1,632,759 $1,633,024 
Commercial & industrial
1 2 — 3 817,405 817,408 
Total commercial266 2 — 268 2,450,164 2,450,432 
Residential Real Estate:
Residential real estate
4,466 701 5,172 10,339 1,456,973 1,467,312 
Consumer:
Home equity
894 129 644 1,667 257,518 259,185 
Other
23 7 88 118 18,943 19,061 
Total consumer917 136 732 1,785 276,461 278,246 
Total loans$5,649 $839 $5,904 $12,392 $4,183,598 $4,195,990 
Nonaccrual Loans
The following is a summary of nonaccrual loans, segregated by class of loans:
(Dollars in thousands)
December 31,20212020
Commercial:
Commercial real estate
$— $— 
Commercial & industrial
— — 
Total commercial— — 
Residential Real Estate:
Residential real estate
13,576 11,981 
Consumer:
Home equity
627 1,128 
Other
— 88 
Total consumer627 1,216 
Total nonaccrual loans$14,203 $13,197 
Accruing loans 90 days or more past due$— $— 

Nonaccrual loans of $4.8 million and $4.7 million, respectively, at December 31, 2021 and 2020 were current as to the payment of principal and interest. In addition, no ACL was deemed necessary on nonaccrual loans with a carrying value of $4.2 million and $3.0 million, respectively, as of December 31, 2021 and 2020.

As of December 31, 2021 and 2020, nonaccrual loans secured by one- to four-family residential property amounting to $1.5 million and $3.4 million, respectively, were in process of foreclosure.

There were no significant commitments to lend additional funds to borrowers whose loans were on nonaccrual status at December 31, 2021.

The following table presents interest income recognized on nonaccrual loans:
(Dollars in thousands)Interest Income Recognized
Years Ended December 31,20212020
Commercial:
Commercial real estate$— $— 
Commercial & industrial— 2 
Total commercial— 2 
Residential Real Estate:
Residential real estate459 379 
Consumer:
Home equity52 35 
Other1 — 
Total consumer53 35 
Total$512 $416 
TDRs
The following table presents the recorded investment in TDRs and other pertinent information:
(Dollars in thousands)
December 31,20212020
Accruing TDRs$16,564 $13,418 
Nonaccrual TDRs2,819 2,345 
Total TDRs$19,383 $15,763 
Specific reserves on TDRs included in the ACL on loans$148 $159 
Additional commitments to lend to borrowers with TDRs$— $— 

The following table presents TDRs occurring during the period indicated and the recorded investment pre- and post- modification:
(Dollars in thousands)Outstanding Recorded Investment
# of LoansPre-ModificationsPost-Modifications
Years ended December 31,202120202021202020212020
Commercial:
Commercial real estate
2 3 $9,859 $1,798 $9,859 $1,798 
Commercial & industrial
— 5 — 6,844 — 6,844 
Total commercial2 8 9,859 8,642 9,859 8,642 
Residential Real Estate:
Residential real estate
— 11 — 5,943 — 5,943 
Consumer:
Home equity
— 4 — 873 — 873 
Other
— — — — — — 
Total consumer— 4 $— $873 $— $873 
Total2 23 $9,859 $15,458 $9,859 $15,458 
Schedule of How Loans Modified As TDR
The following table presents TDRs occurring during the period indicated by type of modification:
(Dollars in thousands)
Years ended December 31,20212020
Below-market interest rate concession $— $— 
Payment deferral— 7,704 
Maturity / amortization concession— — 
Interest only payments9,859 6,384 
Combination (1)
— 1,370 
Total$9,859 $15,458 
(1)    Loans included in this classification were modified with a combination of any two of the concessions listed in this table.
TDRs Subsequent Payment Defaults
The following table presents information on TDRs modified within the previous 12 months for which there was a payment default:

(Dollars in thousands)# of LoansRecorded Investment
Years ended December 31,2021202020212020
Commercial:
Commercial real estate— 1 $— $850 
Commercial & industrial— — — — 
Residential real estate:
Residential real estate— 2 — 1,299 
Consumer:
Home equity— 2 — 118 
Other— — — — 
Total— 5 $— $2,267 
Collateral Dependent Individually Analyzed Loans
The following table presents the carrying value of collateral dependent individually analyzed loans:
(Dollars in thousands)
December 31, 2021
December 31, 2020
Carrying ValueRelated AllowanceCarrying ValueRelated Allowance
Commercial:
Commercial real estate (1)
$10,603 $— $1,792 $— 
Commercial & industrial (2)
— — 451 — 
Total commercial10,603 — 2,243 — 
Residential Real Estate:
Residential real estate (3)
3,803 534 5,947 38 
Consumer:
Home equity (3)
— — 254 183 
Other
— — — — 
Total consumer— — 254 183 
Total$14,406 $534 $8,444 $221 
(1)    Secured by income-producing property.
(2)    Secured by business assets.
(3)    Secured by one- to four-family residential properties.
Credit Quality Indicators
The following table summarizes the Corporation’s loan portfolio by credit quality indicator and loan portfolio segment as of December 31, 2021:
(Dollars in thousands)Term Loans Amortized Cost by Origination Year
20212020201920182017PriorRevolving Loans Amortized CostRevolving Loans Converted to Term LoansTotal
Commercial:
CRE:
Pass
$417,705 $212,649 $260,940 $206,164 $163,132 $266,067 $7,015 $2,202 $1,535,874 
Special Mention
9,089 489 33,982 28,432 — 20,273 320 — 92,585 
Classified
— 958 — 2,685 6,959 1 — — 10,603 
Total CRE
426,794 214,096 294,922 237,281 170,091 286,341 7,335 2,202 1,639,062 
C&I:
Pass
116,959 78,601 104,827 87,619 51,579 83,182 89,686 911 613,364 
Special Mention
— — 606 4,599 6,195 15,605 1,186 — 28,191 
Classified
— — — — — — — — — 
Total C&I
116,959 78,601 105,433 92,218 57,774 98,787 90,872 911 641,555 
Residential Real Estate:
Residential real estate:
Current
733,658 353,742 158,140 85,656 88,365 297,792 — — 1,717,353 
Past Due
— 1,402 1,167 2,379 763 3,911 — — 9,622 
Total residential real estate
733,658 355,144 159,307 88,035 89,128 301,703 — — 1,726,975 
Consumer:
Home equity:
Current
10,434 5,850 3,703 2,380 1,064 3,592 211,488 8,421 246,932 
Past Due
— — 185 — — 245 115 220 765 
Total home equity
10,434 5,850 3,888 2,380 1,064 3,837 211,603 8,641 247,697 
Other:
Current
5,536 3,264 1,313 407 747 6,090 258 — 17,615 
Past Due
21 — — — — — — — 21 
Total other
5,557 3,264 1,313 407 747 6,090 258 — 17,636 
Total Loans$1,293,402 $656,955 $564,863 $420,321 $318,804 $696,758 $310,068 $11,754 $4,272,925 
The following table summarizes the Corporation’s loan portfolio by credit quality indicator and loan portfolio segment as of December 31, 2020:
(Dollars in thousands)Term Loans Amortized Cost by Origination Year
20202019201820172016PriorRevolving Loans Amortized CostRevolving Loans Converted to Term LoansTotal
Commercial:
CRE:
Pass
$283,341 $353,875 $260,917 $236,310 $136,490 $249,359 $10,333 $2,386 $1,533,011 
Special Mention
756 20,235 39,387 16,222 11,318 10,367 771 — 99,056 
Classified
957 — — — — — — — 957 
Total CRE
285,054 374,110 300,304 252,532 147,808 259,726 11,104 2,386 1,633,024 
C&I:
Pass
293,493 95,775 98,146 56,792 44,445 91,128 95,817 1,296 776,892 
Special Mention
1,123 722 3,210 6,839 3,141 14,853 3,806 56 33,750 
Classified
403 — — — — 6,363 — — 6,766 
Total C&I
295,019 96,497 101,356 63,631 47,586 112,344 99,623 1,352 817,408 
Residential Real Estate:
Residential real estate:
Current
463,477 253,228 146,839 155,976 128,139 309,314 — — 1,456,973 
Past Due
238 1,698 1,310 886 110 6,097 — — 10,339 
Total residential real estate
463,715 254,926 148,149 156,862 128,249 315,411 — — 1,467,312 
Consumer:
Home equity:
Current
9,838 6,771 3,898 1,474 1,217 3,955 219,085 11,280 257,518 
Past Due
— 35 24 — — 186 310 1,112 1,667 
Total home equity
9,838 6,806 3,922 1,474 1,217 4,141 219,395 12,392 259,185 
Other:
Current
5,214 2,241 1,237 1,544 548 7,850 308 1 18,943 
Past Due
19 1 — — 88 7 3 — 118 
Total other
5,233 2,242 1,237 1,544 636 7,857 311 1 19,061 
Total Loans$1,058,859 $734,581 $554,968 $476,043 $325,496 $699,479 $330,433 $16,131 $4,195,990 

Consistent with industry practice, Washington Trust may renew commercial loans at or immediately prior to their maturity. In the tables above, renewals subject to full credit evaluation before being granted are reported as originations in the period renewed.
Loan Servicing Rights The following table presents an analysis of loan servicing rights:
(Dollars in thousands)Loan Servicing
Rights		Valuation
Allowance		Total
Balance at December 31, 2018$3,651 $— $3,651 
Loan servicing rights capitalized902 — 902 
Amortization(1,027)— (1,027)
Balance at December 31, 20193,526 — 3,526 
Loan servicing rights capitalized6,569 — 6,569 
Amortization(2,507)— (2,507)
Increase in impairment reserve— (154)(154)
Balance at December 31, 20207,588 (154)7,434 
Loan servicing rights capitalized5,671 — 5,671 
Amortization(3,438)— (3,438)
Decrease in impairment reserve— 154 154 
Balance at December 31, 2021$9,821 $— $9,821 
Amortization Expense Related to Loan Servicing Assets
The following table presents estimated aggregate amortization expense related to loan servicing assets:
(Dollars in thousands)
Years ending December 31:2022$2,211 
20231,713 
20241,328 
20251,029 
2026797 
2027 and thereafter2,743 
Total estimated amortization expense$9,821 
Loans Serviced for Others, by Loan Portfolio The following table presents the balance of loans serviced for others by loan portfolio:
(Dollars in thousands)
December 31,20212020
Residential real estate$1,509,319 $1,231,201 
Commercial119,873 155,935 
Total$1,629,192 $1,387,136