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Loans (Tables)
 12 Months Ended
Dec. 31, 2022
Receivables [Abstract]  
Summary of Loans
The following table presents a summary of loans:
(Dollars in thousands)
December 31,20222021
Commercial:
Commercial real estate (1)
$1,829,304 $1,639,062 
Commercial & industrial (2)
656,397 641,555 
Total commercial2,485,701 2,280,617 
Residential Real Estate:
Residential real estate (3)
2,323,002 1,726,975 
Consumer:
Home equity
285,715 247,697 
Other (4)
15,721 17,636 
Total consumer301,436 265,333 
Total loans (5)
$5,110,139 $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 $1.1 million and $38.0 million, respectively, of PPP loans as of December 31, 2022 and 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 $11.6 million and $6.7 million, respectively, at December 31, 2022 and 2021 and net unamortized premiums on loans purchased from and serviced by other financial institutions of $318 thousand and $414 thousand, respectively, at December 31, 2022 and 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
December 31, 202230-5960-89Over 90Total Past DueCurrentTotal Loans
Commercial:
Commercial real estate
$1,187 $— $— $1,187 $1,828,117 $1,829,304 
Commercial & industrial
265 — — 265 656,132 656,397 
Total commercial1,452 — — 1,452 2,484,249 2,485,701 
Residential Real Estate:
Residential real estate
4,793 303 3,779 8,875 2,314,127 2,323,002 
Consumer:
Home equity
1,103 132 — 1,235 284,480 285,715 
Other
16 — — 16 15,705 15,721 
Total consumer1,119 132 — 1,251 300,185 301,436 
Total loans$7,364 $435 $3,779 $11,578 $5,098,561 $5,110,139 

(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 
Nonaccrual Loans
The following is a summary of nonaccrual loans, segregated by class of loans:
(Dollars in thousands)
December 31,20222021
Commercial:
Commercial real estate
$— $— 
Commercial & industrial
— — 
Total commercial— — 
Residential Real Estate:
Residential real estate
11,894 13,576 
Consumer:
Home equity
952 627 
Other
— — 
Total consumer952 627 
Total nonaccrual loans$12,846 $14,203 
Accruing loans 90 days or more past due$— $— 
The following table presents interest income recognized on nonaccrual loans:
(Dollars in thousands)Interest Income Recognized
Years Ended December 31,20222021
Commercial:
Commercial real estate$— $— 
Commercial & industrial— — 
Total commercial— — 
Residential Real Estate:
Residential real estate398 459 
Consumer:
Home equity62 52 
Other3 1 
Total consumer65 53 
Total$463 $512 
TDRs
The following table presents the recorded investment in TDRs and other pertinent information:
(Dollars in thousands)
December 31,20222021
Accruing TDRs
$3,571 $16,564 
Nonaccrual TDRs
5,073 2,819 
Total TDRs
$8,644 $19,383 
Specific reserves on TDRs included in the ACL on loans
$115 $148 
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 31,202220212022202120222021
Commercial:
Commercial real estate
— 2 $— $9,859 $— $9,859 
Commercial & industrial
3 — 1,687 — 1,687 — 
Total commercial3 2 1,687 9,859 1,687 9,859 
Total3 2 $1,687 $9,859 $1,687 $9,859 
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 31,20222021
Below-market interest rate concession $— $— 
Payment deferral— — 
Maturity / amortization concession— — 
Interest only payments— 9,859 
Combination (1)
1,687 — 
Total$1,687 $9,859 
(1)    Loans included in this classification were modified with a combination of any two of the concessions listed in this table.
Collateral Dependent Individually Analyzed Loans
The following table presents the carrying value of collateral dependent individually analyzed loans:
(Dollars in thousands)
December 31, 2022
December 31, 2021
Carrying ValueRelated AllowanceCarrying ValueRelated Allowance
Commercial:
Commercial real estate (1)
$2,103 $— $10,603 $— 
Commercial & industrial (2)
— — — — 
Total commercial2,103 — 10,603 — 
Residential Real Estate:
Residential real estate (3)
5,760 — 3,803 534 
Consumer:
Home equity (3)
592 — — — 
Other
— — — — 
Total consumer592 — — — 
Total$8,455 $— $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 December 31, 2022:
(Dollars in thousands)Term Loans Amortized Cost by Origination Year
20222021202020192018PriorRevolving Loans Amortized CostRevolving Loans Converted to Term LoansTotal
Commercial:
CRE:
Pass
$591,596 $383,062 $177,286 $170,259 $148,371 $242,061 $6,243 $1,437 $1,720,315 
Special Mention
20,579 22,324 328 24,270 28,676 10,564 146 — 106,887 
Classified
— — 503 — 1,187 412 — — 2,102 
Total CRE
612,175 405,386 178,117 194,529 178,234 253,037 6,389 1,437 1,829,304 
C&I:
Pass
127,152 63,180 71,265 86,470 85,011 114,241 90,987 745 639,051 
Special Mention
13,566 — — — 1,427 — 1,426 — 16,419 
Classified
— 225 — 7 — — 695 — 927 
Total C&I
140,718 63,405 71,265 86,477 86,438 114,241 93,108 745 656,397 
Residential Real Estate:
Residential real estate:
Current
838,566 707,760 277,613 123,098 72,541 294,549 — — 2,314,127 
Past Due
— 600 — 266 2,315 5,694 — — 8,875 
Total residential real estate
838,566 708,360 277,613 123,364 74,856 300,243 — — 2,323,002 
Consumer:
Home equity:
Current
20,665 8,308 3,742 2,406 1,947 3,139 235,004 9,268 284,479 
Past Due
— — — — 68 98 548 522 1,236 
Total home equity
20,665 8,308 3,742 2,406 2,015 3,237 235,552 9,790 285,715 
Other:
Current
4,231 4,287 1,676 299 235 4,726 251 — 15,705 
Past Due
16 — — — — — — — 16 
Total other
4,247 4,287 1,676 299 235 4,726 251 — 15,721 
Total Loans$1,616,371 $1,189,746 $532,413 $407,075 $341,778 $675,484 $335,300 $11,972 $5,110,139 
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 

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, 2019$3,526 $— $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, 20219,821 — 9,821 
Loan servicing rights capitalized957 — 957 
Amortization(1,763)— (1,763)
Balance at December 31, 2022$9,015 $— $9,015 
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 31:2023$1,300 
20241,112 
2025952 
2026815 
2027697 
2028 and thereafter4,139 
Total estimated amortization expense$9,015 
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 31,20222021
Residential real estate$1,457,896 $1,509,319 
Commercial107,762 119,873 
Total$1,565,658 $1,629,192