Loans (Tables)

6 Months Ended

Jun. 30, 2024

Receivables [Abstract]

Summary of Loans

The following table presents a summary of loans:

(Dollars in thousands)	June 30, 2024	December 31, 2023
Commercial:
Commercial real estate (1)	$2,191,996	$2,106,359
Commercial & industrial (2)	558,075	605,072
Total commercial	2,750,071	2,711,431
Residential Real Estate:
Residential real estate (3)	2,558,533	2,604,478
Consumer:
Home equity	302,027	312,594
Other (4)	18,471	19,203
Total consumer	320,498	331,797
Total loans (5)	$5,629,102	$5,647,706

(1)CRE consists of commercial mortgages primarily secured by non-owner occupied 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 owner occupied 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 $13.3 million and $13.0 million, respectively, at June 30, 2024 and December 31, 2023 and net unamortized premiums on loans purchased from and serviced by other financial institutions of $262 thousand and $286 thousand, respectively, at June 30, 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
June 30, 2024	Current	30-59	60-89	90 or More	Total Past Due	Total Loans
Commercial:
Commercial real estate	$2,191,996	$—	$—	$—	$—	$2,191,996
Commercial & industrial	558,073	2	—	—	2	558,075
Total commercial	2,750,069	2	—	—	2	2,750,071
Residential Real Estate:
Residential real estate	2,549,999	3,803	829	3,902	8,534	2,558,533
Consumer:
Home equity	298,703	1,545	1,242	537	3,324	302,027
Other	18,451	18	2	—	20	18,471
Total consumer	317,154	1,563	1,244	537	3,344	320,498
Total loans	$5,617,222	$5,368	$2,073	$4,439	$11,880	$5,629,102

(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 June 30, 2024 and December 31, 2023, were nonaccrual loans of $8.4 million and $6.9 million, respectively. In addition, all loans 90 days or more past due at June 30, 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)	June 30, 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	$—	$18,390	$18,390	$10,997	$21,830	$32,827
Commercial & industrial	—	642	642	—	682	682
Total commercial	—	19,032	19,032	10,997	22,512	33,509
Residential Real Estate:
Residential real estate	8,345	1,399	9,744	8,495	1,131	9,626
Consumer:
Home equity	1,703	—	1,703	1,483	—	1,483
Other	—	—	—	—	—	—
Total consumer	1,703	—	1,703	1,483	—	1,483
Total nonaccrual loans	$10,048	$20,431	$30,479	$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		Six Months
Periods ended June 30,	2024	2023	2024	2023
Commercial:
Commercial real estate	$—	$—	$—	$—
Commercial & industrial	—	21	—	33
Total commercial	—	21	—	33
Residential Real Estate:
Residential real estate	71	89	186	182
Consumer:
Home equity	32	20	69	42
Other	—	1	—	2
Total consumer	32	21	69	44
Total	$103	$131	$255	$259

Summary of TLMs

The following tables present the carrying value at June 30, 2024, of TLMs made during the periods indicated, segregated by class of loans and type of concession granted:

(Dollars in thousands)
Three months ended June 30, 2024	Other-than-Insignificant Payment Delay	Total	% of Loan Class (1)
Residential Real Estate:
Residential real estate	$267	$267	—
Total	$267	$267	—	%

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

(Dollars in thousands)
Six months ended June 30, 2024	Maturity Extension	Other-than-Insignificant Payment Delay	Total	% of Loan Class (1)
Commercial:
Commercial real estate	$—	$—	$—	—	%
Commercial & industrial	642	—	642	—
Total commercial	642	—	642	—
Residential Real Estate:
Residential real estate	—	267	267	—
Total	$642	$267	$909	—	%

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

During the three and six months ended June 30, 2023, there were no TLMs.

The following tables describe the financial effect of TLMs made during the periods indicated, segregated by class of loans:

Three months ended June 30, 2024	Financial Effect
Other-than-Insignificant Payment Delay:
Residential real estate	Provided payment delay for a weighted average period of 6 months

Six months ended June 30, 2024	Financial Effect
Maturity Extension:
Commercial & industrial	Extended maturity by a weighted average of 120 months
Other-than-Insignificant Payment Delay:
Residential real estate	Provided payment delay for a weighted average period of 6 months

Aging of TLMs

The following table presents 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
June 30, 2024	Current	30-59	60-89	90 or More	Total Past Due	Total Loans
Commercial:
Commercial real estate	$7,612	$—	$—	$—	$—	$7,612
Commercial & industrial	910	—	—	—	—	910
Total commercial	8,522	—	—	—	—	8,522
Residential Real Estate:
Residential real estate	267	—	—	—	—	267
Total loans	$8,789	$—	$—	$—	$—	$8,789

Collateral Dependent Individually Analyzed Loans

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

(Dollars in thousands)	June 30, 2024		December 31, 2023
	Carrying Value	Related Allowance	Carrying Value	Related Allowance
Commercial:
Commercial real estate (1)	$18,390	$—	$32,827	$97
Commercial & industrial (2)	642	—	682	—
Total commercial	19,032	—	33,509	97
Residential Real Estate:
Residential real estate (3)	1,399	—	1,131	—
Total	$20,431	$—	$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 June 30, 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	$89,158	$390,442	$625,220	$397,167	$160,985	$466,860	$13,234	$1,009	$2,144,075
Special Mention	—	—	—	—	—	6,312	—	—	6,312
Classified	—	7,880	—	19,767	—	13,962	—	—	41,609
Total CRE	89,158	398,322	625,220	416,934	160,985	487,134	13,234	1,009	2,191,996
Gross charge-offs	—	—	—	—	—	—	—	—	—
C&I:
Pass	20,415	52,570	120,234	37,713	48,225	178,164	98,414	528	556,263
Special Mention	—	—	—	—	—	178	—	—	178
Classified	—	—	817	175	—	642	—	—	1,634
Total C&I	20,415	52,570	121,051	37,888	48,225	178,984	98,414	528	558,075
Gross charge-offs	20	—	—	—	—	—	—	—	20
Residential Real Estate:
Residential real estate:
Current	41,093	419,268	792,516	643,854	244,486	408,782	—	—	2,549,999
Past Due	—	—	—	—	880	7,654	—	—	8,534
Total residential real estate	41,093	419,268	792,516	643,854	245,366	416,436	—	—	2,558,533
Gross charge-offs	—	—	—	—	—	—	—	—	—
Consumer:
Home equity:
Current	7,107	20,104	13,958	6,519	2,414	5,104	232,243	11,254	298,703
Past Due	—	—	—	—	142	795	818	1,569	3,324
Total home equity	7,107	20,104	13,958	6,519	2,556	5,899	233,061	12,823	302,027
Gross charge-offs	—	—	—	—	—	—	—	—	—
Other:
Current	2,874	5,424	3,196	2,324	903	3,474	256	—	18,451
Past Due	19	—	—	—	—	1	—	—	20
Total other	2,893	5,424	3,196	2,324	903	3,475	256	—	18,471
Gross charge-offs	98	—	—	—	2	3	—	—	103
Total loans	$160,666	$895,688	$1,555,941	$1,107,519	$458,035	$1,091,928	$344,965	$14,360	$5,629,102
Total gross charge-offs	$118	$—	$—	$—	$2	$3	$—	$—	$123

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.