Loans (Tables)

6 Months Ended

Jun. 30, 2022

Receivables [Abstract]

Summary of Loans

The following table presents a summary of loans:

(Dollars in thousands)	June 30, 2022	December 31, 2021
Commercial:
Commercial real estate (1)	$1,609,618	$1,639,062
Commercial & industrial (2)	620,270	641,555
Total commercial	2,229,888	2,280,617
Residential Real Estate:
Residential real estate (3)	1,966,341	1,726,975
Consumer:
Home equity	267,785	247,697
Other (4)	15,808	17,636
Total consumer	283,593	265,333
Total loans (5)	$4,479,822	$4,272,925

(1)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)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 $1.9 million and $38.0 million, respectively, of PPP loans as of June 30, 2022 and December 31, 2021.

(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 $10.0 million and $6.7 million, respectively, at June 30, 2022 and December 31, 2021 and net unamortized premiums on purchased loans of $359 thousand and $414 thousand, respectively, at June 30, 2022 and December 31, 2021.

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
June 30, 2022	30-59	60-89	Over 90	Total Past Due	Current	Total Loans
Commercial:
Commercial real estate	$—	$—	$—	$—	$1,609,618	$1,609,618
Commercial & industrial	7	—	—	7	620,263	620,270
Total commercial	7	—	—	7	2,229,881	2,229,888
Residential Real Estate:
Residential real estate	1,795	1,387	4,612	7,794	1,958,547	1,966,341
Consumer:
Home equity	551	—	177	728	267,057	267,785
Other	28	—	—	28	15,780	15,808
Total consumer	579	—	177	756	282,837	283,593
Total loans	$2,381	$1,387	$4,789	$8,557	$4,471,265	$4,479,822

(Dollars in thousands)	Days Past Due
December 31, 2021	30-59	60-89	Over 90	Total Past Due	Current	Total Loans
Commercial:
Commercial real estate	$—	$—	$—	$—	$1,639,062	$1,639,062
Commercial & industrial	3	—	—	3	641,552	641,555
Total commercial	3	—	—	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 consumer	601	77	108	786	264,547	265,333
Total loans	$2,388	$3,253	$4,770	$10,411	$4,262,514	$4,272,925

Nonaccrual Loans

The following table is a summary of nonaccrual loans, segregated by class of loans:

(Dollars in thousands)	Jun 30, 2022	Dec 31, 2021
Commercial:
Commercial real estate	$—	$—
Commercial & industrial	—	—
Total commercial	—	—
Residential Real Estate:
Residential real estate	11,815	13,576
Consumer:
Home equity	599	627
Other	—	—
Total consumer	599	627
Total nonaccrual loans	$12,414	$14,203
Accruing loans 90 days or more past due	$—	$—

No ACL was deemed necessary on nonaccrual loans with carrying values of $4.3 million and $4.2 million, respectively as of June 30, 2022 and December 31, 2021.

Nonaccrual loans of $5.6 million and $4.8 million, respectively, at June 30, 2022 and December 31, 2021 were current as to the payment of principal and interest.

As of June 30, 2022 and December 31, 2021, nonaccrual loans secured by one- to four-family residential property amounting to $4.2 million and $1.5 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 June 30, 2022.

The following table presents interest income recognized on nonaccrual loans:

(Dollars in thousands)	Three Months		Six Months
Periods ended June 30,	2022	2021	2022	2021
Commercial:
Commercial real estate	$—	$—	$—	$—
Commercial & industrial	—	—	—	5
Total commercial	—	—	—	5
Residential Real Estate:
Residential real estate	69	72	167	129
Consumer:
Home equity	8	13	15	36
Other	2	—	2	—
Total consumer	10	13	17	36
Total	$79	$85	$184	$170

Summary of TDRs

The following table presents the recorded investment in TDRs and other pertinent information:

(Dollars in thousands)	Jun 30, 2022	Dec 31, 2021
Accruing TDRs	$9,682	$16,564
Nonaccrual TDRs	2,906	2,819
Total TDRs	$12,588	$19,383
Specific reserves on TDRs included in the ACL on loans	$143	$148
Additional commitments to lend to borrowers with TDRs	$—	$—

TDRs with payment default

The following tables presents information on TDRs modified within the previous 12 months for which there was a payment default:

(Dollars in thousands)	# of Loans		Recorded Investment
Six months ended June 30,	2022	2021	2022	2021
TDRs with a Payment Default:
Residential real estate	—	1	$—	$396

Collateral Dependent Individually Analyzed Loans

The following table presents the carrying value of collateral dependent individually analyzed loans:

(Dollars in thousands)	June 30, 2022		December 31, 2021
	Carrying Value	Related Allowance	Carrying Value	Related Allowance
Commercial:
Commercial real estate (1)	$4,039	$—	$10,603	$—
Commercial & industrial (2)	—	—	—	—
Total commercial	4,039	—	10,603	—
Residential Real Estate:
Residential real estate (3)	3,762	527	3,803	534
Consumer:
Home equity (3)	—	—	—	—
Other	—	—	—	—
Total consumer	—	—	—	—
Total	$7,801	$527	$14,406	$534

(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 June 30, 2022:

(Dollars in thousands)	Term Loans Amortized Cost by Origination Year
	2022	2021	2020	2019	2018	Prior	Revolving Loans Amortized Cost	Revolving Loans Converted to Term Loans	Total
Commercial:
CRE:
Pass	$244,412	$361,991	$186,538	$201,926	$179,055	$361,827	$8,084	$1,538	$1,545,371
Special Mention	—	17,844	532	13,206	17,689	10,704	233	—	60,208
Classified	—	—	940	—	2,685	414	—	—	4,039
Total CRE	244,412	379,835	188,010	215,132	199,429	372,945	8,317	1,538	1,609,618
C&I:
Pass	43,777	65,054	78,323	90,213	95,810	120,606	107,352	822	601,957
Special Mention	524	—	—	448	1,461	13,528	1,611	—	17,572
Classified	—	—	—	45	—	—	696	—	741
Total C&I	44,301	65,054	78,323	90,706	97,271	134,134	109,659	822	620,270
Residential Real Estate:
Residential real estate:
Current	406,919	725,462	293,236	133,137	75,624	324,169	—	—	1,958,547
Past Due	—	—	1,398	1,156	2,415	2,825	—	—	7,794
Total residential real estate	406,919	725,462	294,634	134,293	78,039	326,994	—	—	1,966,341
Consumer:
Home equity:
Current	13,101	9,001	4,021	2,872	2,171	3,719	224,332	7,839	267,056
Past Due	—	—	—	—	—	116	522	91	729
Total home equity	13,101	9,001	4,021	2,872	2,171	3,835	224,854	7,930	267,785
Other:
Current	1,859	5,201	1,919	785	284	5,470	262	—	15,780
Past Due	28	—	—	—	—	—	—	—	28
Total other	1,887	5,201	1,919	785	284	5,470	262	—	15,808
Total Loans	$710,620	$1,184,553	$566,907	$443,788	$377,194	$843,378	$343,092	$10,290	$4,479,822

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
	2021	2020	2019	2018	2017	Prior	Revolving Loans Amortized Cost	Revolving Loans Converted to Term Loans	Total
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

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.