Business Segments

9 Months Ended

Sep. 30, 2024

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, and custodian; 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 September 30,	2024	2023	2024	2023	2024	2023
Net interest income	$32,262	$33,741	$—	$10	$32,262	$33,751
Provision for credit losses	200	500	—	—	200	500
Net interest income after provision for credit losses	32,062	33,241	—	10	32,062	33,251
Noninterest income	6,177	6,105	10,095	9,121	16,272	15,226
Noninterest expenses:
Depreciation and amortization expense	878	892	306	346	1,184	1,238
Other noninterest expenses	26,523	25,719	6,797	7,433	33,320	33,152
Total noninterest expenses	27,401	26,611	7,103	7,779	34,504	34,390
Income before income taxes	10,838	12,735	2,992	1,352	13,830	14,087
Income tax expense	2,193	2,621	656	305	2,849	2,926
Net income	$8,645	$10,114	$2,336	$1,047	$10,981	$11,161
Total assets at period end	$7,082,826	$7,127,117	$58,745	$56,358	$7,141,571	$7,183,475
Expenditures for long-lived assets	1,271	498	2	6	1,273	504

(Dollars in thousands)	Commercial Banking		Wealth Management Services		Consolidated Total
Nine months ended September 30,	2024	2023	2024	2023	2024	2023
Net interest income	$95,512	$104,407	$—	$37	$95,512	$104,444
Provision for credit losses	1,400	2,000	—	—	1,400	2,000
Net interest income after provision for credit losses	94,112	102,407	—	37	94,112	102,444
Noninterest income	18,400	15,679	31,695	27,155	50,095	42,834
Noninterest expenses:
Depreciation and amortization expense	2,663	2,582	934	1,059	3,597	3,641
Other noninterest expenses	78,690	74,801	20,490	22,528	99,180	97,329
Total noninterest expenses	81,353	77,383	21,424	23,587	102,777	100,970
Income before income taxes	31,159	40,703	10,271	3,605	41,430	44,308
Income tax expense	6,441	8,226	2,257	853	8,698	9,079
Net income	$24,718	$32,477	$8,014	$2,752	$32,732	$35,229
Total assets at period end	$7,082,826	$7,127,117	$58,745	$56,358	$7,141,571	$7,183,475
Expenditures for long-lived assets	3,427	3,493	92	31	3,519	3,524