Business Segments

6 Months Ended

Jun. 30, 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 tables present 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 June 30,	2023	2022	2023	2022	2023	2022
Net interest income (expense)	$33,486	$37,563	$14	($48)	$33,500	$37,515
Provision for credit losses	700	(3,000)	—	—	700	(3,000)
Net interest income (expense) after provision for credit losses	32,786	40,563	14	(48)	32,800	40,515
Noninterest income	5,142	5,619	9,183	10,233	14,325	15,852
Noninterest expenses:
Depreciation and amortization expense	858	707	358	341	1,216	1,048
Other noninterest expenses	24,449	22,504	7,351	7,525	31,800	30,029
Total noninterest expenses	25,307	23,211	7,709	7,866	33,016	31,077
Income before income taxes	12,621	22,971	1,488	2,319	14,109	25,290
Income tax expense	2,518	4,748	335	585	2,853	5,333
Net income	$10,103	$18,223	$1,153	$1,734	$11,256	$19,957
Total assets at period end	$6,938,357	$5,908,644	$73,403	$74,247	$7,011,760	$5,982,891
Expenditures for long-lived assets	1,859	1,558	17	89	1,876	1,647

(Dollars in thousands)	Commercial Banking		Wealth Management Services		Consolidated Total
Six months ended June 30,	2023	2022	2023	2022	2023	2022
Net interest income (expense)	$70,666	$72,671	$27	($65)	$70,693	$72,606
Provision for credit losses	1,500	(2,900)	—	—	1,500	(2,900)
Net interest income (expense) after provision for credit losses	69,166	75,571	27	(65)	69,193	75,506
Noninterest income	9,573	12,131	18,035	20,880	27,608	33,011
Noninterest expenses:
Depreciation and amortization expense	1,690	1,418	713	685	2,403	2,103
Other noninterest expenses	49,082	45,114	15,095	15,079	64,177	60,193
Total noninterest expenses	50,772	46,532	15,808	15,764	66,580	62,296
Income before income taxes	27,967	41,170	2,254	5,051	30,221	46,221
Income tax expense	5,605	8,545	548	1,236	6,153	9,781
Net income	$22,362	$32,625	$1,706	$3,815	$24,068	$36,440
Total assets at period end	$6,938,357	$5,908,644	$73,403	$74,247	$7,011,760	$5,982,891
Expenditures for long-lived assets	2,995	2,288	25	193	3,020	2,481