Loans (Tables)

6 Months Ended

Jun. 30, 2023

The following table presents a summary of loans:


(Dollars in thousands)	June 30, 2023	December 31, 2022
Commercial:


Commercial real estate (1)	$1,940,030	$1,829,304
Commercial & industrial (2)	611,472	656,397
Total commercial	2,551,502	2,485,701
Residential Real Estate:


Residential real estate (3)	2,510,125	2,323,002
Consumer:


Home equity	301,116	285,715
Other (4)	18,370	15,721
Total consumer	319,486	301,436
Total loans (5)	$5,381,113	$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 $12.5 million and $11.6 million, respectively, at June 30, 2023 and December 31, 2022 and net unamortized premiums on loans purchased from and serviced by other financial institutions of $302 thousand and $318 thousand, respectively, at June 30, 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
June 30, 2023	30-59	60-89	Over 90	Total Past Due	Current	Total Loans
Commercial:
Commercial real estate	$—	$—	$—	$—	$1,940,030	$1,940,030
Commercial & industrial	3	220	—	223	611,249	611,472
Total commercial	3	220	—	223	2,551,279	2,551,502
Residential Real Estate:
Residential real estate	1,943	973	1,468	4,384	2,505,741	2,510,125
Consumer:
Home equity	1,136	333	40	1,509	299,607	301,116
Other	214	—	—	214	18,156	18,370
Total consumer	1,350	333	40	1,723	317,763	319,486
Total loans	$3,296	$1,526	$1,508	$6,330	$5,374,783	$5,381,113


(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 June 30, 2023 and December 31, 2022, were nonaccrual loans of $3.7 million and $7.2 million, respectively. In addition, all loans 90 days or more past due at June 30, 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)	June 30, 2023	December 31, 2022
Commercial:
Commercial real estate	$—	$—
Commercial & industrial	899	—
Total commercial	899	—
Residential Real Estate:
Residential real estate	8,542	11,894
Consumer:
Home equity	966	952
Other	—	—
Total consumer	966	952
Total nonaccrual loans	$10,407	$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		Six Months

Periods ended June 30,	2023	2022	2023	2022
Commercial:
Commercial real estate	$—	$—	$—	$—
Commercial & industrial	21	—	33	—
Total commercial	21	—	33	—
Residential Real Estate:
Residential real estate	89	69	182	167
Consumer:
Home equity	20	8	42	15
Other	1	2	2	2
Total consumer	21	10	44	17
Total	$131	$79	$259	$184

Collateral Dependent Individually Analyzed Loans

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


(Dollars in thousands)	June 30, 2023		December 31, 2022
	Carrying Value	Related Allowance	Carrying Value	Related Allowance
Commercial:
Commercial real estate (1)	$—	$—	$2,103	$—
Commercial & industrial (2)	899	—	—	—
Total commercial	899	—	2,103	—
Residential Real Estate:
Residential real estate (3)	1,131	—	5,760	—
Consumer:
Home equity (3)	—	—	592	—
Other	—	—	—	—
Total consumer	—	—	592	—
Total	$2,030	$—	$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 June 30, 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	$154,806	$566,582	$396,671	$179,064	$157,234	$379,606	$10,977	$1,139	$1,846,079
Special Mention	22,747	—	17,863	52	27,636	25,594	59	—	93,951
Classified	—	—	—	—	—	—	—	—	—
Total CRE	177,553	566,582	414,534	179,116	184,870	405,200	11,036	1,139	1,940,030
CRE gross charge-offs	—	—	—	—	—	—	—	—	—

C&I:
Pass	14,828	125,865	68,250	51,898	86,043	157,798	90,177	938	595,797
Special Mention	12,841	831	—	—	184	—	920	—	14,776
Classified	—	—	203	—	696	—	—	—	899
Total C&I	27,669	126,696	68,453	51,898	86,923	157,798	91,097	938	611,472





C&I gross charge-offs (1)	20	—	—	—	—	—	—	—	20

Residential Real Estate:
Residential real estate:
Current	251,971	831,528	689,071	265,134	118,687	349,350	—	—	2,505,741
Past Due	—	—	392	368	263	3,361	—	—	4,384
Total residential real estate	251,971	831,528	689,463	265,502	118,950	352,711	—	—	2,510,125
Residential real estate gross charge-offs	—	—	—	—	—	—	—	—	—

Consumer:
Home equity:
Current	17,474	16,317	7,574	3,233	2,229	4,959	237,908	9,913	299,607
Past Due	—	—	—	—	—	194	311	1,004	1,509
Total home equity	17,474	16,317	7,574	3,233	2,229	5,153	238,219	10,917	301,116
Home equity gross charge-offs	—	—	—	—	—	—	—	—	—

Other:
Current	4,373	3,830	3,846	1,129	177	4,550	251	—	18,156
Past Due	14	—	—	199	—	1	—	—	214
Total other	4,387	3,830	3,846	1,328	177	4,551	251	—	18,370




Other gross charge-offs (1)	85	—	8	—	—	—	—	—	93

Total loans	$479,054	$1,544,953	$1,183,870	$501,077	$393,149	$925,413	$340,603	$12,994	$5,381,113
Total gross charge-offs	$105	$—	$8	$—	$—	$—	$—	$—	$113

(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.