WASHINGTON TRUST BANCORP INCWASH
WASHINGTON TRUST BANCORP INC Segments Disclosure
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 tables presents the components of net income (loss), as well as other supplemental information for Washington Trust’s reportable business segments:
| (Dollars in thousands) | |||||||||||
| Year ended December 31, 2025 | Banking | Wealth Management Services | Consolidated Total | ||||||||
| Total interest income and dividend income | $318,091 | $— | $318,091 | ||||||||
| Total interest expense | 164,903 | — | 164,903 | ||||||||
| Net interest income | 153,188 | — | 153,188 | ||||||||
| Provision for credit losses | 9,200 | — | 9,200 | ||||||||
| Net interest income after provision for credit losses | 143,988 | — | 143,988 | ||||||||
| Noninterest income | 33,887 | 41,973 | 75,860 | ||||||||
| Noninterest expenses: | |||||||||||
| Salaries and employee benefits | 69,485 | 22,283 | 91,768 | ||||||||
| Outsourced services | 13,552 | 3,385 | 16,937 | ||||||||
| Net occupancy | 9,793 | 943 | 10,736 | ||||||||
| Equipment | 3,303 | 287 | 3,590 | ||||||||
| Legal, audit and professional fees | 2,199 | 663 | 2,862 | ||||||||
FDIC deposit insurance costs | 4,580 | — | 4,580 | ||||||||
| Advertising and promotion | 2,439 | 480 | 2,919 | ||||||||
| Amortization of intangibles | — | 762 | 762 | ||||||||
| Other expenses | 14,563 | 3,718 | 18,281 | ||||||||
| Total noninterest expense | 119,914 | 32,521 | 152,435 | ||||||||
| Income before income taxes | 57,961 | 9,452 | 67,413 | ||||||||
| Income tax expense | 12,772 | 2,397 | 15,169 | ||||||||
| Net income | $45,189 | $7,055 | $52,244 | ||||||||
| Supplemental Information: | |||||||||||
| Total assets at period end | $6,558,488 | $63,206 | $6,621,694 | ||||||||
| Expenditures for long-lived assets | 1,956 | 49 | 2,005 | ||||||||
Depreciation expense (1) | 3,125 | 330 | 3,455 | ||||||||
(1)Included in net occupancy and equipment expenses in the table above.
Noninterest income in 2025 for the Banking segment included a $7.0 million net gain associated with sale-leaseback transactions that were completed for five branch locations. See additional disclosure regarding the sale-leaseback transactions in Note 7.
Also, in 2025, total other expenses included a $6.4 million pension plan settlement charge, of which $4.9 million was included in the 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 16.
| (Dollars in thousands) | |||||||||||
| Year ended December 31, 2024 | Banking | Wealth Management Services | Consolidated Total | ||||||||
| Total interest and dividend income | $340,678 | $— | $340,678 | ||||||||
| Total interest expense | 212,230 | — | 212,230 | ||||||||
| Net interest income | 128,448 | — | 128,448 | ||||||||
| Provision for credit losses | 2,400 | — | 2,400 | ||||||||
| Net interest income after provision for credit losses | 126,048 | — | 126,048 | ||||||||
| Noninterest (loss) income | (69,609) | 41,812 | (27,797) | ||||||||
| Noninterest expenses: | |||||||||||
| Salaries and employee benefits | 66,482 | 19,778 | 86,260 | ||||||||
| Outsourced services | 12,340 | 3,918 | 16,258 | ||||||||
| Net occupancy | 8,726 | 1,059 | 9,785 | ||||||||
| Equipment | 3,486 | 352 | 3,838 | ||||||||
| Legal, audit and professional fees | 2,473 | 655 | 3,128 | ||||||||
FDIC deposit insurance costs | 5,513 | — | 5,513 | ||||||||
| Advertising and promotion | 2,252 | 374 | 2,626 | ||||||||
| Amortization of intangibles | — | 826 | 826 | ||||||||
| Other expenses | 7,517 | 1,318 | 8,835 | ||||||||
| Total noninterest expense | 108,789 | 28,280 | 137,069 | ||||||||
| (Loss) income before income taxes | (52,350) | 13,532 | (38,818) | ||||||||
| Income tax (benefit) expense | (13,530) | 2,771 | (10,759) | ||||||||
| Net (loss) income | ($38,820) | $10,761 | ($28,059) | ||||||||
| Supplemental Information: | |||||||||||
| Total assets at period end | $6,870,612 | $60,035 | $6,930,647 | ||||||||
| Expenditures for long-lived assets | 3,862 | 139 | 4,001 | ||||||||
Depreciation expense (1) | 3,530 | 404 | 3,934 | ||||||||
(1)Included in net occupancy and equipment expenses in the statement of operations above.
Noninterest income in 2024 for the Wealth Management Services segment included income of $2.1 million associated with a litigation settlement.
Additionally, the sale of securities and reclassification of residential mortgage loans to held for sale in connection with the balance sheet repositioning transactions that were executed in December 2024 impacted the results for the Banking segment. See additional discussion of the impact of these transactions in Notes 3 and 10.
| (Dollars in thousands) | |||||||||||
| Year ended December 31, 2023 | Banking | Wealth Management Services | Consolidated Total | ||||||||
| Total interest and dividend income | $308,622 | $37 | $308,659 | ||||||||
| Total interest expense | 171,561 | — | 171,561 | ||||||||
| Net interest income | 137,061 | 37 | 137,098 | ||||||||
| Provision for credit losses | 3,200 | — | 3,200 | ||||||||
| Net interest income after provision for credit losses | 133,861 | 37 | 133,898 | ||||||||
| Noninterest income | 20,006 | 36,134 | 56,140 | ||||||||
| Noninterest expenses: | |||||||||||
| Salaries and employee benefits | 62,013 | 20,445 | 82,458 | ||||||||
| Outsourced services | 10,972 | 3,549 | 14,521 | ||||||||
| Net occupancy | 8,313 | 1,323 | 9,636 | ||||||||
| Equipment | 3,841 | 477 | 4,318 | ||||||||
| Legal, audit and professional fees | 2,751 | 1,140 | 3,891 | ||||||||
FDIC deposit insurance costs | 4,667 | — | 4,667 | ||||||||
| Advertising and promotion | 2,140 | 422 | 2,562 | ||||||||
| Amortization of intangibles | — | 843 | 843 | ||||||||
| Other expenses | 8,269 | 2,392 | 10,661 | ||||||||
| Total noninterest expense | 102,966 | 30,591 | 133,557 | ||||||||
| Income before income taxes | 50,901 | 5,580 | 56,481 | ||||||||
| Income tax expense | 7,028 | 1,277 | 8,305 | ||||||||
| Net income | $43,873 | $4,303 | $48,176 | ||||||||
| Supplemental Information: | |||||||||||
| Total assets at period end | $7,146,096 | $56,751 | $7,202,847 | ||||||||
| Expenditures for long-lived assets | 5,013 | 35 | 5,048 | ||||||||
Depreciation expense (1) | 3,460 | 545 | 4,005 | ||||||||
(1)Included in net occupancy and equipment expenses in the statement of operations above.
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.