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Business Segments
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Business Segments Business Segments
The Corporation manages its operations through two reportable business segments, consisting of Banking and Wealth Management Services. The Corporation’s reportable business segments are determined by the Chairman and Chief Executive Officer, and the Senior Executive Vice President, Chief Financial Officer and Treasurer, the designated CODMs.

An allocation methodology is utilized to allocate income and expenses to the business segments. 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.

The Banking segment includes commercial, residential, and consumer lending activities; mortgage banking activities; deposit generation; treasury management services; other 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 and operations are provided through the Bank and its registered investment adviser subsidiary. The Wealth Management Services segment provides 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 CODMs evaluate the financial performance of each business segment, which is measured based upon the business segment’s net income. Components of net income for the business segments that are reviewed by the CODMs include net interest income, provision for credit losses, noninterest income, noninterest expense, and income tax expense. The CODMs, in conjunction with management committees (such as the ALCO) and certain members of executive management, evaluates financial performance to make decisions related to the products and services that are offered, pricing, and the allocation of resources, for each business segment.
The following table presents the components of net income, as well as other supplemental information for Washington Trust’s reportable business segments:
(Dollars in thousands)BankingWealth Management ServicesConsolidated Total
Three months ended March 31, 202620252026202520262025
Total interest income and dividend income$74,982 $79,463 $— $— $74,982 $79,463 
Total interest expense34,457 43,041 — — 34,457 43,041 
Net interest income40,525 36,422 — — 40,525 36,422 
Provision for credit losses4,000 1,200 — — 4,000 1,200 
Net interest income after provision for credit losses36,525 35,222 — — 36,525 35,222 
Noninterest income6,430 12,635 10,873 10,008 17,303 22,643 
Noninterest expenses:
Salaries and employee benefits18,790 16,979 5,550 5,443 24,340 22,422 
Outsourced services3,599 3,265 784 1,081 4,383 4,346 
Net occupancy2,663 2,471 227 270 2,890 2,741 
Equipment843 815 60 76 903 891 
Legal, audit and professional fees662 527 274 223 936 750 
FDIC deposit insurance costs
935 1,262 — — 935 1,262 
Advertising and promotion463 348 84 62 547 410 
Amortization of intangibles— — 155 204 155 204 
Other expenses2,147 6,879 529 2,291 2,676 9,170 
Total noninterest expenses30,102 32,546 7,663 9,650 37,765 42,196 
Income before income taxes12,853 15,311 3,210 358 16,063 15,669 
Income tax expense2,734 3,347 729 143 3,463 3,490 
Net income$10,119 $11,964 $2,481 $215 $12,600 $12,179 
Supplemental Information:
Total assets at period end$6,395,861 $6,525,532 $63,335 $60,483 $6,459,196 $6,586,015 
Expenditures for long-lived assets1,165 87 141 1 1,306 88 
Depreciation expense (1)
736 808 71 86 807 894 
(1)Included in net occupancy and equipment expenses in the table above.
For the three months ended March 31, 2025, noninterest income for the Banking segment included a $7.0 million net gain recognized in the first quarter associated with sale-leaseback transactions that were completed for five branch locations.

Also, for the three months ended March 31, 2025, total other expenses included a $6.4 million pension plan settlement charge recognized in the first quarter, of which $4.9 million was included in the Banking segment and $1.5 million was included in the Wealth Management Services segment.