Loans (Tables)

3 Months Ended

Mar. 31, 2024

The following table presents a summary of loans:


(Dollars in thousands)	March 31, 2024	December 31, 2023
Commercial:


Commercial real estate (1)	$2,158,518	$2,106,359
Commercial & industrial (2)	613,376	605,072
Total commercial	2,771,894	2,711,431
Residential Real Estate:


Residential real estate (3)	2,585,524	2,604,478
Consumer:


Home equity	309,302	312,594
Other (4)	18,512	19,203
Total consumer	327,814	331,797
Total loans (5)	$5,685,232	$5,647,706

(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 $13.1 million and $13.0 million, respectively, at March 31, 2024 and December 31, 2023 and net unamortized premiums on loans purchased from and serviced by other financial institutions of $273 thousand and $286 thousand, respectively, at March 31, 2024 and December 31, 2023.

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, 2024	Current	30-59	60-89	90 or More	Total Past Due	Total Loans
Commercial:
Commercial real estate	$2,158,518	$—	$—	$—	$—	$2,158,518
Commercial & industrial	613,106	270	—	—	270	613,376
Total commercial	2,771,624	270	—	—	270	2,771,894
Residential Real Estate:
Residential real estate	2,578,666	2,988	817	3,053	6,858	2,585,524
Consumer:
Home equity	306,423	1,969	113	797	2,879	309,302
Other	18,480	32	—	—	32	18,512
Total consumer	324,903	2,001	113	797	2,911	327,814
Total loans	$5,675,193	$5,259	$930	$3,850	$10,039	$5,685,232


(Dollars in thousands)		Days Past Due
December 31, 2023	Current	30-59	60-89	90 or More	Total Past Due	Total Loans
Commercial:
Commercial real estate	$2,106,359	$—	$—	$—	$—	$2,106,359
Commercial & industrial	605,062	10	—	—	10	605,072
Total commercial	2,711,421	10	—	—	10	2,711,431
Residential Real Estate:
Residential real estate	2,596,362	4,369	1,738	2,009	8,116	2,604,478
Consumer:
Home equity	309,398	2,349	112	735	3,196	312,594
Other	19,180	20	3	—	23	19,203
Total consumer	328,578	2,369	115	735	3,219	331,797
Total loans	$5,636,361	$6,748	$1,853	$2,744	$11,345	$5,647,706

Included in past due loans as of March 31, 2024 and December 31, 2023, were nonaccrual loans of $5.1 million and $6.9 million, respectively. In addition, all loans 90 days or more past due at March 31, 2024 and December 31, 2023 were classified as nonaccrual.

Nonaccrual Loans

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


(Dollars in thousands)	March 31, 2024			December 31, 2023
	Nonaccrual Loans			Nonaccrual Loans
	With an ACL	Without an ACL	Total	With an ACL	Without an ACL	Total
Commercial:
Commercial real estate	$—	$18,729	$18,729	$10,997	$21,830	$32,827
Commercial & industrial	—	668	668	—	682	682
Total commercial	—	19,397	19,397	10,997	22,512	33,509
Residential Real Estate:
Residential real estate	8,590	1,132	9,722	8,495	1,131	9,626
Consumer:
Home equity	1,591	—	1,591	1,483	—	1,483
Other	—	—	—	—	—	—
Total consumer	1,591	—	1,591	1,483	—	1,483
Total nonaccrual loans	$10,181	$20,529	$30,710	$20,975	$23,643	$44,618
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,	2024	2023
Commercial:
Commercial real estate	$305	$27
Commercial & industrial	14	13
Total commercial	319	40
Residential Real Estate:
Residential real estate	116	173
Consumer:
Home equity	35	22
Other	—	1
Total consumer	35	23
Total	$470	$236

Summary of TLMs

The following table presents the carrying value at March 31, 2024, of TLMs made during the period indicated, segregated by class of loans and type of concession granted:


(Dollars in thousands)
Three months ended March 31, 2024	Maturity Extension	Total	% of Loan Class (1)
Commercial:
Commercial real estate	$—	$—	—	%
Commercial & industrial	668	668	—
Total commercial	668	668	—






Total	$668	$668	—	%

(1)Percentage of TLMs to the total loans outstanding within the respective loan class.

During the three months ended March 31, 2023, there were no TLMs.

The following table presents the financial effect of TLMs made during the period indicated, segregated by class of loans:

Three months ended March 31, 2024

Weighted Average Maturity Extension
(in months)

Commercial:

Commercial real estate

—

Commercial & industrial

120

Total commercial

120

Total

120

Aging of TLMs

The following tables present an aging analysis, as of the date indicated, of TLMs that have been modified in the past 12 months:


(Dollars in thousands)		Days Past Due
March 31, 2024	Current	30-59	60-89	90 or More	Total Past Due	Total Loans
Commercial:
Commercial real estate	$21,692	$—	$—	$—	$—	$21,692
Commercial & industrial	668	—	—	—	—	668
Total commercial	22,360	—	—	—	—	22,360






Total loans	$22,360	$—	$—	$—	$—	$22,360


(Dollars in thousands)		Days Past Due
December 31, 2023	Current	30-59	60-89	90 or More	Total Past Due	Total Loans
Commercial:
Commercial real estate	$21,830	$—	$—	$—	$—	$21,830
Commercial & industrial	—	—	—	—	—	—
Total commercial	21,830	—	—	—	—	21,830






Total loans	$21,830	$—	$—	$—	$—	$21,830

Collateral Dependent Individually Analyzed Loans

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


(Dollars in thousands)	March 31, 2024		December 31, 2023
	Carrying Value	Related Allowance	Carrying Value	Related Allowance
Commercial:
Commercial real estate (1)	$32,446	$—	$32,827	$97
Commercial & industrial (2)	668	—	682	—
Total commercial	33,114	—	33,509	97
Residential Real Estate:
Residential real estate (3)	1,131	—	1,131	—




Total	$34,245	$—	$34,640	$97

(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, 2024:


(Dollars in thousands)	Term Loans Amortized Cost by Origination Year
	2024	2023	2022	2021	2020	Prior	Revolving Loans Amortized Cost	Revolving Loans Converted to Term Loans	Total
Commercial:
CRE:
Pass	$39,504	$337,357	$606,664	$396,089	$167,540	$494,029	$44,510	$1,022	$2,086,715
Special Mention	—	13,716	—	—	—	16,536	—	—	30,252
Classified	—	7,975	—	19,346	—	14,230	—	—	41,551
Total CRE	39,504	359,048	606,664	415,435	167,540	524,795	44,510	1,022	2,158,518
Gross charge-offs	—	—	—	—	—	—	—	—	—

C&I:
Pass	41,752	53,657	125,752	50,132	49,053	184,526	96,460	556	601,888
Special Mention	—	—	4,141	1,309	—	4,369	—	—	9,819
Classified	—	—	818	183	—	668	—	—	1,669
Total C&I	41,752	53,657	130,711	51,624	49,053	189,563	96,460	556	613,376





Gross charge-offs	8	—	—	—	—	—	—	—	8

Residential Real Estate:
Residential real estate:
Current	17,794	426,177	801,966	654,646	251,358	426,725	—	—	2,578,666
Past Due	—	—	—	392	883	5,583	—	—	6,858
Total residential real estate	17,794	426,177	801,966	655,038	252,241	432,308	—	—	2,585,524
Gross charge-offs	—	—	—	—	—	—	—	—	—

Consumer:
Home equity:
Current	3,682	23,025	14,522	6,690	2,697	5,984	237,829	11,994	306,423
Past Due	—	—	139	23	142	390	668	1,517	2,879
Total home equity	3,682	23,025	14,661	6,713	2,839	6,374	238,497	13,511	309,302
Gross charge-offs	—	—	—	—	—	—	—	—	—

Other:
Current	1,020	6,457	3,422	2,585	945	3,814	237	—	18,480
Past Due	22	—	7	—	3	—	—	—	32
Total other	1,042	6,457	3,429	2,585	948	3,814	237	—	18,512




Gross charge-offs	58	—	—	—	2	2	—	—	62

Total loans	$103,774	$868,364	$1,557,431	$1,131,395	$472,621	$1,156,854	$379,704	$15,089	$5,685,232
Total gross charge-offs	$66	$—	$—	$—	$2	$2	$—	$—	$70

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 December 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	$327,139	$598,946	$396,468	$168,451	$167,484	$333,356	$42,095	$1,032	$2,034,971
Special Mention	—	—	—	—	—	16,630	—	—	16,630
Classified	21,830	—	18,430	—	14,498	—	—	—	54,758
Total CRE	348,969	598,946	414,898	168,451	181,982	349,986	42,095	1,032	2,106,359
Gross charge-offs	—	—	—	—	—	373	—	—	373

C&I:
Pass	55,607	124,894	52,282	49,812	72,876	145,361	90,664	587	592,083
Special Mention	11,119	—	—	—	181	—	—	—	11,300
Classified	—	818	189	—	682	—	—	—	1,689
Total C&I	66,726	125,712	52,471	49,812	73,739	145,361	90,664	587	605,072
Gross charge-offs	37	—	—	—	—	—	—	—	37






Residential Real Estate:
Residential real estate:
Current	431,563	808,442	666,447	255,554	113,462	320,894	—	—	2,596,362
Past Due	—	—	—	886	594	6,636	—	—	8,116
Total residential real estate	431,563	808,442	666,447	256,440	114,056	327,530	—	—	2,604,478
Gross charge-offs	—	—	—	—	—	—	—	—	—

Consumer:
Home equity:
Current	24,925	14,997	6,829	2,919	1,982	3,696	241,459	12,591	309,398
Past Due	—	—	—	—	130	829	1,301	936	3,196
Total home equity	24,925	14,997	6,829	2,919	2,112	4,525	242,760	13,527	312,594
Gross charge-offs	—	—	—	—	—	—	—	—	—

Other:
Current	6,777	3,530	3,685	1,001	120	3,824	243	—	19,180
Past Due	21	—	—	—	—	—	2	—	23
Total other	6,798	3,530	3,685	1,001	120	3,824	245	—	19,203
Gross charge-offs	159	—	8	—	—	—	—	—	167





Total Loans	$878,981	$1,551,627	$1,144,330	$478,623	$372,009	$831,226	$375,764	$15,146	$5,647,706
Total gross charge-offs	$196	$—	$8	$—	$—	$373	$—	$—	$577

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. In addition, loans with extensions of maturity dates of more than three months are reported as originations in the period extended.