Business Segments

3 Months Ended

Mar. 31, 2023

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.

Management uses an allocation methodology to allocate income and expenses to the business lines. Direct activities are assigned to the appropriate business segment to which the activity relates. Indirect activities, such as corporate, technology and other support functions, are allocated to business segments primarily based upon full-time equivalent employee computations.

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 table presents the statement of operations and total assets for Washington Trust’s reportable segments:

(Dollars in thousands)	Commercial Banking		Wealth Management Services		Consolidated Total
Three months ended March 31,	2023	2022	2023	2022	2023	2022
Net interest income (expense)	$37,180	$35,108	$13	($17)	$37,193	$35,091
Provision for credit losses	800	100	—	—	800	100
Net interest income (expense) after provision for credit losses	36,380	35,008	13	(17)	36,393	34,991
Noninterest income	4,431	6,512	8,852	10,647	13,283	17,159
Noninterest expenses:
Depreciation and amortization expense	831	711	356	344	1,187	1,055
Other noninterest expenses	24,635	22,611	7,742	7,553	32,377	30,164
Total noninterest expenses	25,466	23,322	8,098	7,897	33,564	31,219
Income before income taxes	15,345	18,198	767	2,733	16,112	20,931
Income tax expense	3,087	3,797	213	651	3,300	4,448
Net income	$12,258	$14,401	$554	$2,082	$12,812	$16,483
Total assets at period end	$6,785,254	$5,773,796	$73,928	$74,203	$6,859,182	$5,847,999
Expenditures for long-lived assets	1,136	730	8	104	1,144	834