Loans (Tables)

3 Months Ended

Mar. 31, 2023

The following table presents a summary of loans:


(Dollars in thousands)	March 31, 2023	December 31, 2022
Commercial:


Commercial real estate (1)	$1,909,136	$1,829,304
Commercial & industrial (2)	609,720	656,397
Total commercial	2,518,856	2,485,701
Residential Real Estate:


Residential real estate (3)	2,403,255	2,323,002
Consumer:


Home equity	288,878	285,715
Other (4)	16,980	15,721
Total consumer	305,858	301,436
Total loans (5)	$5,227,969	$5,110,139

(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.

(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 $11.9 million and $11.6 million, respectively, at March 31, 2023 and December 31, 2022 and net unamortized premiums on loans purchased from and serviced by other financial institutions of $310 thousand and $318 thousand, respectively, at March 31, 2023 and December 31, 2022.

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
March 31, 2023	30-59	60-89	Over 90	Total Past Due	Current	Total Loans
Commercial:
Commercial real estate	$1,188	$—	$—	$1,188	$1,907,948	$1,909,136
Commercial & industrial	5	—	224	229	609,491	609,720
Total commercial	1,193	—	224	1,417	2,517,439	2,518,856
Residential Real Estate:
Residential real estate	2,581	643	2,506	5,730	2,397,525	2,403,255
Consumer:
Home equity	770	63	—	833	288,045	288,878
Other	15	—	—	15	16,965	16,980
Total consumer	785	63	—	848	305,010	305,858
Total loans	$4,559	$706	$2,730	$7,995	$5,219,974	$5,227,969


(Dollars in thousands)	Days Past Due
December 31, 2022	30-59	60-89	Over 90	Total Past Due	Current	Total Loans
Commercial:
Commercial real estate	$1,187	$—	$—	$1,187	$1,828,117	$1,829,304
Commercial & industrial	265	—	—	265	656,132	656,397
Total commercial	1,452	—	—	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 consumer	1,119	132	—	1,251	300,185	301,436
Total loans	$7,364	$435	$3,779	$11,578	$5,098,561	$5,110,139

Included in past due loans as of March 31, 2023 and December 31, 2022, were nonaccrual loans of $5.6 million and $7.2 million, respectively. In addition, all loans 90 days or more past due at March 31, 2023 and December 31, 2022 were classified as nonaccrual.

Nonaccrual Loans

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


(Dollars in thousands)	Mar 31, 2023	Dec 31, 2022
Commercial:
Commercial real estate	$1,601	$—
Commercial & industrial	920	—
Total commercial	2,521	—
Residential Real Estate:
Residential real estate	10,470	11,894
Consumer:
Home equity	989	952
Other	—	—
Total consumer	989	952
Total nonaccrual loans	$13,980	$12,846
Accruing loans 90 days or more past due	$—	$—

The following table presents interest income recognized on nonaccrual loans:



(Dollars in thousands)
Three months ended March 31,	2023	2022
Commercial:
Commercial real estate	$27	$—
Commercial & industrial	13	—
Total commercial	40	—
Residential Real Estate:
Residential real estate	173	101
Consumer:
Home equity	22	7
Other	1	—
Total consumer	23	7
Total	$236	$108

Collateral Dependent Individually Analyzed Loans

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


(Dollars in thousands)	March 31, 2023		December 31, 2022
	Carrying Value	Related Allowance	Carrying Value	Related Allowance
Commercial:
Commercial real estate (1)	$2,096	$308	$2,103	$—
Commercial & industrial (2)	920	224	—	—
Total commercial	3,016	532	2,103	—
Residential Real Estate:
Residential real estate (3)	4,614	—	5,760	—
Consumer:
Home equity (3)	592	—	592	—
Other	—	—	—	—
Total consumer	592	—	592	—
Total	$8,222	$532	$8,455	$—

(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 includes information on credit quality indicators and gross charge-offs for the Corporation’s loan portfolio, segregated by class of loans as of March 31, 2023:


(Dollars in thousands)	Term Loans Amortized Cost by Origination Year
	2023	2022	2021	2020	2019	Prior	Revolving Loans Amortized Cost	Revolving Loans Converted to Term Loans	Total
Commercial:
CRE:
Pass	$74,365	$556,396	$394,005	$179,602	$168,940	$413,854	$8,931	$1,154	$1,797,247
Special Mention	20,487	—	22,302	668	27,761	38,968	102	—	110,288
Classified	—	—	—	—	—	1,601	—	—	1,601
Total CRE	94,852	556,396	416,307	180,270	196,701	454,423	9,033	1,154	1,909,136
CRE gross charge-offs	—	—	—	—	—	—	—	—	—

C&I:
Pass	4,116	120,221	59,156	67,621	82,807	167,451	91,060	979	593,411
Special Mention	11,529	836	—	—	185	1,412	1,427	—	15,389
Classified	—	—	224	—	696	—	—	—	920
Total C&I	15,645	121,057	59,380	67,621	83,688	168,863	92,487	979	609,720





C&I gross charge-offs (1)	11	—	—	—	—	—	—	—	11

Residential Real Estate:
Residential real estate:
Current	108,758	836,112	700,923	272,006	120,896	358,830	—	—	2,397,525
Past Due	—	—	392	530	1,406	3,402	—	—	5,730
Total residential real estate	108,758	836,112	701,315	272,536	122,302	362,232	—	—	2,403,255
Residential real estate gross charge-offs	—	—	—	—	—	—	—	—	—

Consumer:
Home equity:
Current	5,140	18,965	7,993	3,585	2,319	5,344	234,279	10,420	288,045
Past Due	—	—	—	—	—	63	317	453	833
Total home equity	5,140	18,965	7,993	3,585	2,319	5,407	234,596	10,873	288,878
Home equity gross charge-offs	—	—	—	—	—	—	—	—	—

Other:
Current	1,951	4,180	4,204	1,427	217	4,764	222	—	16,965
Past Due	15	—	—	—	—	—	—	—	15
Total other	1,966	4,180	4,204	1,427	217	4,764	222	—	16,980




Other gross charge-offs (1)	42	—	8	—	—	—	—	—	50

Total loans	$226,361	$1,536,710	$1,189,199	$525,439	$405,227	$995,689	$336,338	$13,006	$5,227,969
Total gross charge-offs	$53	$—	$8	$—	$—	$—	$—	$—	$61

(1)Gross charge-offs in 2023 represent charge-offs of business and consumer account overdraft balances.

The following table includes information on credit quality indicators for the Corporation’s loan portfolio, segregated by class of loans as of December 31, 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	$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

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.