Loans (Tables)

9 Months Ended

Sep. 30, 2024

Receivables [Abstract]

Summary of Loans

The following table presents the carrying value of loans, segregated by class of loans:

(Dollars in thousands)	September 30, 2024	December 31, 2023
Commercial:
Commercial real estate (1)	$2,102,091	$2,106,359
Commercial & industrial (2)	566,279	605,072
Total commercial	2,668,370	2,711,431
Residential Real Estate:
Residential real estate (3)	2,529,397	2,604,478
Consumer:
Home equity	299,379	312,594
Other (4)	17,724	19,203
Total consumer	317,103	331,797
Total loans (5)	$5,514,870	$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. Also, includes a $19 thousand negative basis adjustment associated with fair value hedges at September 30, 2024. See Note 6 for additional disclosure.

(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 $13.4 million and $13.0 million, respectively, at September 30, 2024 and December 31, 2023 and net unamortized premiums on loans purchased from and serviced by other financial institutions of $249 thousand and $286 thousand, respectively, at September 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
September 30, 2024	Current	30-59	60-89	90 or More	Total Past Due	Total Loans
Commercial:
Commercial real estate	$2,091,615	$—	$10,476	$—	$10,476	$2,102,091
Commercial & industrial	566,276	3	—	—	3	566,279
Total commercial	2,657,891	3	10,476	—	10,479	2,668,370
Residential Real Estate:
Residential real estate	2,522,450	912	3,856	2,179	6,947	2,529,397
Consumer:
Home equity	296,579	1,520	533	747	2,800	299,379
Other	17,649	75	—	—	75	17,724
Total consumer	314,228	1,595	533	747	2,875	317,103
Total loans	$5,494,569	$2,510	$14,865	$2,926	$20,301	$5,514,870

(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 September 30, 2024 and December 31, 2023, were nonaccrual loans of $18.1 million and $6.9 million, respectively. In addition, all loans 90 days or more past due at September 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)	September 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	$10,475	$7,784	$18,259	$10,997	$21,830	$32,827
Commercial & industrial	—	616	616	—	682	682
Total commercial	10,475	8,400	18,875	10,997	22,512	33,509
Residential Real Estate:
Residential real estate	9,489	1,028	10,517	8,495	1,131	9,626
Consumer:
Home equity	1,750	—	1,750	1,483	—	1,483
Other	—	—	—	—	—	—
Total consumer	1,750	—	1,750	1,483	—	1,483
Total nonaccrual loans	$21,714	$9,428	$31,142	$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		Nine Months
Periods ended September 30,	2024	2023	2024	2023
Commercial:
Commercial real estate	$—	$474	$—	$1,344
Commercial & industrial	—	9	—	35
Total commercial	—	483	—	1,379
Residential Real Estate:
Residential real estate	139	82	332	341
Consumer:
Home equity	36	22	106	59
Other	—	1	—	3
Total consumer	36	23	106	62
Total	$175	$588	$438	$1,782

Summary of TLMs

During the three months ended September 30, 2024, there were no loans modified as a TLM.

The following table presents the carrying value of TLMs made during the nine months ended September 30, 2024, segregated by class of loans and type of concession granted:

(Dollars in thousands)
	Maturity Extension	Other-than-Insignificant Payment Delay	Total	% of Loan Class (1)
Commercial:
Commercial real estate	$—	$—	$—	—	%
Commercial & industrial	616	—	616	—
Total commercial	616	—	616	—
Residential Real Estate:
Residential real estate	—	265	265	—
Total	$616	$265	$881	—	%

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

The following table presents the carrying value of TLMs made during the three and nine months ended September 30, 2023, segregated by class of loans and type of concession granted:

(Dollars in thousands)
	Maturity Extension	Total	% of Loan Class (1)
Commercial:
Commercial real estate	$13,963	$13,963	1	%
Commercial & industrial	—	—	—
Total commercial	13,963	13,963	1
Total	$13,963	$13,963	—	%

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

The following table describes the financial effect of TLMs made during the nine months ended September 30, 2024, segregated by class of loans:

Nine months ended September 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

The following table describes the financial effect of TLMs made during the three and nine months ended September 30, 2023, segregated by class of loans:

	Financial Effect
Maturity Extension:
Commercial real estate	Extended maturity by a weighted average period of 9 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
September 30, 2024	Current	30-59	60-89	90 or More	Total Past Due	Total Loans
Commercial:
Commercial real estate	$7,519	$—	$—	$—	$—	$7,519
Commercial & industrial	881	—	—	—	—	881
Total commercial	8,400	—	—	—	—	8,400
Residential Real Estate:
Residential real estate	265	—	—	—	—	265
Total loans	$8,665	$—	$—	$—	$—	$8,665

Collateral Dependent Individually Analyzed Loans

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

(Dollars in thousands)	September 30, 2024		December 31, 2023
	Carrying Value	Related Allowance	Carrying Value	Related Allowance
Commercial:
Commercial real estate (1)	$18,259	$500	$32,827	$97
Commercial & industrial (2)	616	—	682	—
Total commercial	18,875	500	33,509	97
Residential Real Estate:
Residential real estate (3)	1,028	—	1,131	—
Total	$19,903	$500	$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 September 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	$102,951	$411,548	$595,793	$363,292	$126,092	$440,220	$12,702	$998	$2,053,596
Special mention	—	—	—	—	—	6,291	—	—	6,291
Classified	20,518	7,784	—	—	—	13,902	—	—	42,204
Total CRE	123,469	419,332	595,793	363,292	126,092	460,413	12,702	998	2,102,091
Gross charge-offs	—	—	—	—	—	—	—	—	—
C&I:
Pass	36,394	51,886	134,880	24,008	45,534	167,399	86,116	500	546,717
Special mention	—	—	3,630	1,223	1,420	6,511	5,001	—	17,785
Classified	815	—	—	169	—	793	—	—	1,777
Total C&I	37,209	51,886	138,510	25,400	46,954	174,703	91,117	500	566,279
Gross charge-offs	24	—	—	—	—	—	—	—	24
Residential Real Estate:
Residential real estate:
Current (1)	61,973	412,283	780,622	633,280	239,234	395,077	—	—	2,522,469
Past due	—	288	—	—	510	6,149	—	—	6,947
Total residential real estate	61,973	412,571	780,622	633,280	239,744	401,226	—	—	2,529,416
Gross charge-offs	—	—	—	—	—	—	—	—	—
Consumer:
Home equity:
Current	10,553	18,968	13,186	6,298	2,368	4,580	227,817	12,809	296,579
Past due	—	196	100	—	142	873	899	590	2,800
Total home equity	10,553	19,164	13,286	6,298	2,510	5,453	228,716	13,399	299,379
Gross charge-offs	—	—	—	—	—	—	—	—	—
Other:
Current	3,266	4,774	3,046	2,241	857	3,228	237	—	17,649
Past due	41	—	24	9	—	1	—	—	75
Total other	3,307	4,774	3,070	2,250	857	3,229	237	—	17,724
Gross charge-offs	153	—	—	—	2	3	—	—	158
Total loans, amortized cost	$236,511	$907,727	$1,531,281	$1,030,520	$416,157	$1,045,024	$332,772	$14,897	$5,514,889
Total gross charge-offs	$177	$—	$—	$—	$2	$3	$—	$—	$182

(1)Excludes a $19 thousand negative basis adjustment associated with fair value hedges. See Note 6 for additional disclosure.

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, amortized cost	$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.