v3.25.2
Business Segments
 6 Months Ended
Jun. 30, 2025
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. The Corporation’s reportable business segments are determined by the Senior Executive Vice President, Chief Financial Officer and Treasurer, the designated CODM.

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 Commercial Banking segment includes commercial, residential, and consumer lending activities; mortgage banking activities; deposit generation; cash 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 CODM evaluates 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 CODM include net interest income, provision for credit losses, noninterest income, noninterest expense, and income tax expense. The CODM, 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 tables present the components of net income, as well as other supplemental information for Washington Trust’s reportable business segments:
(Dollars in thousands)Commercial BankingWealth Management ServicesConsolidated Total
Three months ended June 30, 202520242025202420252024
Total interest income and dividend income$78,846 $85,997 $— $— $78,846 $85,997 
Total interest expense41,661 54,412 — — 41,661 54,412 
Net interest income37,185 31,585 — — 37,185 31,585 
Provision for credit losses600 500 — — 600 500 
Net interest income after provision for credit losses36,585 31,085 — — 36,585 31,085 
Noninterest income6,720 6,651 10,358 10,009 17,078 16,660 
Noninterest expenses:
Salaries and employee benefits17,434 16,443 5,591 4,817 23,025 21,260 
Outsourced services3,374 3,115 1,030 981 4,404 4,096 
Net occupancy2,393 2,131 269 266 2,662 2,397 
Equipment855 877 75 81 930 958 
Legal, audit and professional fees525 633 201 108 726 741 
FDIC deposit insurance costs
1,235 1,404 — — 1,235 1,404 
Advertising and promotion601 564 116 97 717 661 
Amortization of intangibles— — 203 208 203 208 
Other expenses2,095 1,752 533 433 2,628 2,185 
Total noninterest expenses28,512 26,919 8,018 6,991 36,530 33,910 
Income before income taxes14,793 10,817 2,340 3,018 17,133 13,835 
Income tax expense3,283 2,342 605 678 3,888 3,020 
Net income$11,510 $8,475 $1,735 $2,340 $13,245 $10,815 
Supplemental Information:
Total assets at period end$6,683,840 $7,125,943 $61,327 $58,417 $6,745,167 $7,184,360 
Expenditures for long-lived assets388 1,598 13 22 401 1,620 
Depreciation expense (1)
790 893 86 103 876 996 
(1)Included in net occupancy and equipment expenses in the table above.
(Dollars in thousands)Commercial BankingWealth Management ServicesConsolidated Total
Six months ended June 30, 202520242025202420252024
Total interest income and dividend income$158,309 $171,253 $— $— $158,309 $171,253 
Total interest expense84,702 108,003 — — 84,702 108,003 
Net interest income73,607 63,250 — — 73,607 63,250 
Provision for credit losses1,800 1,200 — — 1,800 1,200 
Net interest income after provision for credit losses71,807 62,050 — — 71,807 62,050 
Noninterest income 19,355 12,223 20,366 21,600 39,721 33,823 
Noninterest expenses:
Salaries and employee benefits34,413 33,013 11,034 10,022 45,447 43,035 
Outsourced services6,639 5,963 2,111 1,913 8,750 7,876 
Net occupancy4,864 4,437 539 521 5,403 4,958 
Equipment1,670 1,778 151 200 1,821 1,978 
Legal, audit and professional fees1,052 1,223 424 224 1,476 1,447 
FDIC deposit insurance costs
2,497 2,845 — — 2,497 2,845 
Advertising and promotion949 1,030 178 179 1,127 1,209 
Amortization of intangibles— — 407 416 407 416 
Other expenses8,974 3,663 2,824 846 11,798 4,509 
Total noninterest expenses61,058 53,952 17,668 14,321 78,726 68,273 
Income before income taxes30,104 20,321 2,698 7,279 32,802 27,600 
Income tax expense6,630 4,248 748 1,601 7,378 5,849 
Net income$23,474 $16,073 $1,950 $5,678 $25,424 $21,751 
Total assets at period end$6,683,840 $7,125,943 $61,327 $58,417 $6,745,167 $7,184,360 
Expenditures for long-lived assets475 2,156 14 90 489 2,246 
Depreciation expense (1)
1,598 1,786 172 212 1,770 1,998 
(1)Included in net occupancy and equipment expenses in the table above.

For the six months ended June 30, 2025, noninterest income for the Commercial Banking segment included a $7.0 million net gain recognized in the first quarter associated with sales-leaseback transactions that were completed for five branch locations. See additional disclosure regarding the sale-leaseback transactions in Note 6.

Also, for the six months ended June 30, 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 Commercial Banking segment and $1.5 million was included in the Wealth Management Services segment. See additional disclosure regarding the pension plan settlement charge in Note 13.

For the six months ended June 30, 2024, noninterest income for the Wealth Management Services segment included income of $2.1 million recognized in the first quarter associated with a litigation settlement.