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Loans (Tables)
 12 Months Ended
Dec. 31, 2020
Receivables [Abstract]  
Summary of Loans
The following is a summary of loans:
(Dollars in thousands)
December 31,20202019
Commercial:
Commercial real estate (1)
$1,633,024 $1,547,572 
Commercial & industrial (2)
817,408 585,289 
Total commercial2,450,432 2,132,861 
Residential Real Estate:
Residential real estate (3)
1,467,312 1,449,090 
Consumer:
Home equity
259,185 290,874 
Other (4)
19,061 20,174 
Total consumer278,246 311,048 
Total loans (5)
$4,195,990 $3,892,999 
(1)Commercial real estate (“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)Commercial & industrial (“C&I”) consists of loans to businesses and individuals, a portion of which are fully or partially collateralized by real estate. C&I also includes $199.8 million of PPP loans as of December 31, 2020.
(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 $1.5 million and $5.3 million, respectively, at December 31, 2020 and 2019 and net unamortized premiums on purchased loans of $787 thousand and $995 thousand, respectively, at December 31, 2020 and 2019.
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
December 31, 202030-5960-89Over 90Total Past DueCurrentTotal Loans
Commercial:
Commercial real estate
$265 $— $— $265 $1,632,759 $1,633,024 
Commercial & industrial
1 2 — 3 817,405 817,408 
Total commercial266 2 — 268 2,450,164 2,450,432 
Residential Real Estate:
Residential real estate
4,466 701 5,172 10,339 1,456,973 1,467,312 
Consumer:
Home equity
894 129 644 1,667 257,518 259,185 
Other
23 7 88 118 18,943 19,061 
Total consumer917 136 732 1,785 276,461 278,246 
Total loans$5,649 $839 $5,904 $12,392 $4,183,598 $4,195,990 
(Dollars in thousands)Days Past Due
December 31, 201930-5960-89Over 90Total Past DueCurrentTotal Loans
Commercial:
Commercial real estate
$830 $— $603 $1,433 $1,546,139 $1,547,572 
Commercial & industrial
1 — — 1 585,288 585,289 
Total commercial831 — 603 1,434 2,131,427 2,132,861 
Residential Real Estate:
Residential real estate
4,574 2,155 4,700 11,429 1,437,661 1,449,090 
Consumer:
Home equity
971 729 996 2,696 288,178 290,874 
Other
42 — 88 130 20,044 20,174 
Total consumer1,013 729 1,084 2,826 308,222 311,048 
Total loans$6,418 $2,884 $6,387 $15,689 $3,877,310 $3,892,999 
Nonaccrual Loans
The following is a summary of nonaccrual loans, segregated by class of loans:
(Dollars in thousands)
December 31,20202019
Commercial:
Commercial real estate
$— $603 
Commercial & industrial
— 657 
Total commercial— 1,260 
Residential Real Estate:
Residential real estate
11,981 14,297 
Consumer:
Home equity
1,128 1,763 
Other
88 88 
Total consumer1,216 1,851 
Total nonaccrual loans$13,197 $17,408 
Accruing loans 90 days or more past due$— $— 

For nonaccrual loans with a carrying value of $3.0 million as of December 31, 2020, no ACL was deemed necessary.

As of December 31, 2020 and December 31, 2019, nonaccrual loans secured by one- to four-family residential property amounting to $3.4 million and $5.8 million, respectively, were in process of foreclosure.

Nonaccrual loans of $4.7 million and $5.9 million, respectively, were current as to the payment of principal and interest at December 31, 2020 and December 31, 2019.

There were no significant commitments to lend additional funds to borrowers whose loans were on nonaccrual status at December 31, 2020.
The following table presents interest income recognized on nonaccrual loans segregated by loan class:
(Dollars in thousands)Interest Income Recognized
Year ended December 31, 2020
Commercial:
Commercial real estate$— 
Commercial & industrial2 
Total commercial2 
Residential Real Estate:
Residential real estate379 
Consumer:
Home equity35 
Other— 
Total consumer35 
Total$416 
TDRs
The following table presents the recorded investment in TDRs and certain other information related to TDRs:
(Dollars in thousands)
December 31,20202019
Accruing TDRs$13,418 $377 
Nonaccrual TDRs2,345 492 
Total TDRs$15,763 $869 
Specific reserves on TDRs included in the ACL on loans$159 $97 
Additional commitments to lend to borrowers with TDRs$— $— 
The following table presents loans modified as a TDR:
(Dollars in thousands)Outstanding Recorded Investment
# of LoansPre-ModificationsPost-Modifications
Years ended December 31,202020192020201920202019
Commercial:
Commercial real estate
3 — $1,798 $— $1,798 $— 
Commercial & industrial
5 — 6,844 — 6,844 — 
Total commercial8 — 8,642 — 8,642 — 
Residential Real Estate:
Residential real estate
11 — 5,943 — 5,943 — 
Consumer:
Home equity
4 — 873 — 873 — 
Other
— — — — — — 
Total consumer4 — $873 $— $873 $— 
Total23 — $15,458 $— $15,458 $— 
Schedule of How Loans Modified As TDR
The following table presents information on how loans were modified as a TDR:
(Dollars in thousands)
Years ended December 31,20202019
Below-market interest rate concession $— $— 
Payment deferral7,704 — 
Maturity / amortization concession— — 
Interest only payments6,384 — 
Combination (1)
1,370 — 
Total$15,458 $— 
(1)    Loans included in this classification were modified with a combination of any two of the concessions listed in this table.
TDRs Subsequent Payment Defaults
The following table presents information on TDRs modified within the previous 12 months for which there was a payment default:

(Dollars in thousands)# of LoansRecorded Investment
Years ended December 31,2020201920202019
Commercial:
Commercial real estate1 — $850 $— 
Commercial & industrial— — — — 
Residential real estate:
Residential real estate2 — 1,299 — 
Consumer:
Home equity2 — 118 — 
Other— — — — 
Total5 — $2,267 $— 
Collateral Dependent Individually Analyzed Loans
The following table presents the carrying value of collateral dependent individually analyzed loans as of December 31, 2020:
(Dollars in thousands)Carrying ValueRelated Allowance
Commercial:
Commercial real estate (1)
$1,792 $— 
Commercial & industrial (2)
451 — 
Total commercial2,243 — 
Residential Real Estate:
Residential real estate (3)
5,947 38 
Consumer:
Home equity (3)
254 183 
Other
— — 
Total consumer254 183 
Total$8,444 $221 
(1)    Secured by income-producing property.
(2)    Secured by business assets.
(3)     Secured by one- to four-family residential properties.
Impaired Loans
Prior to January 1, 2020, impaired loans individually analyzed for impairment included nonaccrual loans and executed TDRs. The following is a summary of impaired loans as of December 31, 2019:

(Dollars in thousands)
Recorded Investment (1)
Unpaid PrincipalRelated Allowance
No Related Allowance Recorded
Residential Real Estate:
Residential real estate$13,968 $14,803 $— 
Consumer:
Home equity
1,471 1,472 — 
Other
88 88 — 
Total consumer1,559 1,560 — 
Subtotal15,527 16,363 — 
With Related Allowance Recorded
Commercial:
Commercial real estate
$603 $926 $— 
Commercial & industrial
657 657 580 
Total commercial1,260 1,583 580 
Residential Real Estate:
Residential real estate687 714 95 
Consumer:
Home equity
292 291 291 
Other
18 18 2 
Total consumer310 309 293 
Subtotal2,257 2,606 968 
Total impaired loans$17,784 $18,969 $968 
Total:
Commercial$1,260 $1,583 $580 
Residential real estate14,655 15,517 95 
Consumer1,869 1,869 293 
Total impaired loans$17,784 $18,969 $968 
(1)The recorded investment in impaired loans consists of unpaid principal balance, net of charge-offs, interest payments received applied to principal and unamortized deferred loan origination fees and costs. For accruing impaired loans (TDRs for which management has concluded that the collectability of the loan is not in doubt), the recorded investment also includes accrued interest.
As required under the GAAP in effect prior to the adoption of ASC 326, the following table presents the average recorded investment balance of impaired loans and interest income recognized on impaired loans segregated by loan class:
(Dollars in thousands)
Average Recorded Investment
Interest Income Recognized
Years ended December 31,2019201820192018
Commercial:
Commercial real estate
$864 $1,050 $1 $— 
Commercial & industrial
2,149 5,403 106 259 
Total commercial
3,013 6,453 107 259 
Residential real estate:
Residential real estate
11,575 9,645 473 393 
Consumer:
Home equity
1,466 1,182 58 52 
Other
68 69 2 5 
Total consumer1,534 1,251 60 57 
Totals$16,122 $17,349 $640 $709 
Credit Quality Indicators
The following table summarizes the Corporation’s loan portfolio by credit quality indicator and loan portfolio segment as of December 31, 2020:
(Dollars in thousands)Term Loans Amortized Cost by Origination Year
20202019201820172016PriorRevolving Loans Amortized CostRevolving Loans Converted to Term LoansTotal
Commercial:
CRE:
Pass
$283,341 $353,875 $260,917 $236,310 $136,490 $249,359 $10,333 $2,386 $1,533,011 
Special Mention
756 20,235 39,387 16,222 11,318 10,367 771 — 99,056 
Classified
957 — — — — — — — 957 
Total CRE
285,054 374,110 300,304 252,532 147,808 259,726 11,104 2,386 1,633,024 
C&I:
Pass
293,493 95,775 98,146 56,792 44,445 91,128 95,817 1,296 776,892 
Special Mention
1,123 722 3,210 6,839 3,141 14,853 3,806 56 33,750 
Classified
403 — — — — 6,363 — — 6,766 
Total C&I
295,019 96,497 101,356 63,631 47,586 112,344 99,623 1,352 817,408 
Residential Real Estate:
Residential real estate:
Current
463,477 253,228 146,839 155,976 128,139 309,314 — — 1,456,973 
Past Due
238 1,698 1,310 886 110 6,097 — — 10,339 
Total residential real estate
463,715 254,926 148,149 156,862 128,249 315,411 — — 1,467,312 
Consumer:
Home equity:
Current
9,838 6,771 3,898 1,474 1,217 3,955 219,085 11,280 257,518 
Past Due
— 35 24 — — 186 310 1,112 1,667 
Total home equity
9,838 6,806 3,922 1,474 1,217 4,141 219,395 12,392 259,185 
Other:
Current
5,214 2,241 1,237 1,544 548 7,850 308 1 18,943 
Past Due
19 1 — — 88 7 3 — 118 
Total other
5,233 2,242 1,237 1,544 636 7,857 311 1 19,061 
Total Loans$1,058,859 $734,581 $554,968 $476,043 $325,496 $699,479 $330,433 $16,131 $4,195,990 

Consistent with industry practice, Washington Trust may renew commercial loans at or immediately prior to their maturity. In the table above, renewals subject to full credit evaluation before being granted are reported as originations in the period renewed.
As required under the GAAP in effect prior to the adoption of ASC 326, the following table presents the commercial loan portfolio, segregated by category of credit quality indicator as of December 31, 2019:
(Dollars in thousands)
PassSpecial MentionClassified
Commercial:
Commercial real estate
$1,546,139 $830 $603 
Commercial & industrial
549,416 24,961 10,912 
Total commercial$2,095,555 $25,791 $11,515 

As required under the GAAP in effect prior to the adoption of ASC 326, the following table presents the residential and consumer loan portfolios, segregated by category of credit quality indicator as of December 31, 2019:
(Dollars in thousands)
As of December 31, 2019CurrentPast Due
Residential Real Estate:
Residential real estate$1,437,661 $11,429 
Consumer:
Home equity
288,178 2,696 
Other
20,044 130 
Total consumer$308,222 $2,826 
Loan Servicing Rights The following table presents an analysis of loan servicing rights:
(Dollars in thousands)Loan Servicing
Rights		Valuation
Allowance		Total
Balance at December 31, 2017$3,613 $— $3,613 
Loan servicing rights capitalized905 — 905 
Amortization(867)— (867)
Balance at December 31, 20183,651 — 3,651 
Loan servicing rights capitalized902 — 902 
Amortization(1,027)— (1,027)
Balance at December 31, 20193,526 — 3,526 
Loan servicing rights capitalized6,569 — 6,569 
Amortization(2,507)— (2,507)
Increase in impairment reserve— (154)(154)
Balance at December 31, 2020$7,588 ($154)$7,434 
Amortization Expense Related to Loan Servicing Assets
The following table presents estimated aggregate amortization expense related to loan servicing assets:
(Dollars in thousands)
Years ending December 31:2021$2,407 
20221,644 
20231,122 
2024766 
2025523 
2026 and thereafter1,126 
Total estimated amortization expense$7,588 
Loans Serviced for Others, by Loan Portfolio The following table presents the balance of loans serviced for others by loan portfolio:
(Dollars in thousands)
December 31,20202019
Residential real estate$1,231,201 $586,996 
Commercial155,935 159,948 
Total$1,387,136 $746,944