v3.26.3
Business Segments
 9 Months Ended
Sep. 30, 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 and certain members of executive management, evaluate 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)BankingWealth Management ServicesConsolidated Total
Three months ended September 30, 202620252026202520262025
Total interest and dividend income$78,405 $80,945 $— $— $78,405 $80,945 
Total interest expense33,713 42,112 — — 33,713 42,112 
Net interest income44,692 38,833 — — 44,692 38,833 
Provision for credit losses1,800 6,800 — — 1,800 6,800 
Net interest income after provision for credit losses42,892 32,033 — — 42,892 32,033 
Noninterest income8,915 7,115 11,350 10,521 20,265 17,636 
Noninterest expenses:
Salaries and employee benefits19,795 17,246 5,329 5,428 25,124 22,674 
Outsourced services3,888 3,540 717 580 4,605 4,120 
Net occupancy2,519 2,512 214 179 2,733 2,691 
Equipment876 854 54 63 930 917 
Legal, audit and professional fees716 603 86 116 802 719 
FDIC deposit insurance costs
794 1,055 — — 794 1,055 
Advertising and promotion598 637 105 126 703 763 
Amortization of intangibles— — 155 200 155 200 
Other expenses2,332 2,237 619 350 2,951 2,587 
Total noninterest expenses31,518 28,684 7,279 7,042 38,797 35,726 
Income before income taxes20,289 10,464 4,071 3,479 24,360 13,943 
Income tax expense4,060 2,254 919 843 4,979 3,097 
Net income$16,229 $8,210 $3,152 $2,636 $19,381 $10,846 
Supplemental Information:
Total assets at period end$6,473,811 $6,655,634 $64,680 $62,287 $6,538,491 $6,717,921 
Expenditures for long-lived assets2,483 423 182 9 2,665 432 
Depreciation expense (1)
749 772 69 80 818 852 
(1)Included in net occupancy and equipment expenses in the table above.
(Dollars in thousands)BankingWealth Management ServicesConsolidated Total
Nine months ended September 30, 202620252026202520262025
Total interest and dividend income$228,556 $239,254 $— $— $228,556 $239,254 
Total interest expense101,536 126,814 — — 101,536 126,814 
Net interest income127,020 112,440 — — 127,020 112,440 
Provision for credit losses7,400 8,600 — — 7,400 8,600 
Net interest income after provision for credit losses119,620 103,840 — — 119,620 103,840 
Noninterest income 22,595 26,470 33,635 30,887 56,230 57,357 
Noninterest expenses:
Salaries and employee benefits58,335 51,659 16,441 16,462 74,776 68,121 
Outsourced services11,074 10,179 2,180 2,691 13,254 12,870 
Net occupancy7,693 7,376 665 718 8,358 8,094 
Equipment2,549 2,524 171 214 2,720 2,738 
Legal, audit and professional fees1,956 1,655 606 540 2,562 2,195 
FDIC deposit insurance costs
2,681 3,552 — — 2,681 3,552 
Advertising and promotion1,714 1,586 307 304 2,021 1,890 
Amortization of intangibles— — 466 607 466 607 
Other expenses6,618 11,211 1,703 3,174 8,321 14,385 
Total noninterest expenses92,620 89,742 22,539 24,710 115,159 114,452 
Income before income taxes49,595 40,568 11,096 6,177 60,691 46,745 
Income tax expense10,220 8,884 2,509 1,591 12,729 10,475 
Net income$39,375 $31,684 $8,587 $4,586 $47,962 $36,270 
Total assets at period end$6,473,811 $6,655,634 $64,680 $62,287 $6,538,491 $6,717,921 
Expenditures for long-lived assets4,708 811 348 22 5,056 833 
Depreciation expense (1)
2,230 2,370 210 253 2,440 2,623 
(1)Included in net occupancy and equipment expenses in the table above.

For the nine months ended September 30, 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 nine months ended September 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 Banking segment and $1.5 million was included in the Wealth Management Services segment.