Exhibit 99.1
[Graphic omitted]
NASDAQ: WASH
Contact: Elizabeth B. Eckel
Senior Vice President, Marketing
Telephone: (401) 348-1309
E-mail: ebeckel@washtrust.com
Date: January 22, 2008
FOR IMMEDIATE RELEASE
Washington Trust Announces Fourth Quarter 2007 Earnings
Westerly, Rhode Island…Washington Trust Bancorp, Inc. (NASDAQ Global Market; symbol: WASH), parent company of The Washington Trust Company, today announced fourth quarter 2007 net income of $5.8 million, or 43 cents per diluted share. Net income for the fourth quarter of last year totaled $6.2 million, or 45 cents per diluted share. The year-over-year decline in fourth quarter 2007 net income was primarily attributable to a higher provision for loan losses. The increase in the provision is based on management’s assessment of various factors affecting the loan portfolio, including, among others, growth in the portfolio, ongoing evaluation of credit quality and economic conditions. The returns on average equity and average assets for the fourth quarter of 2007 were 12.73% and 0.94%, respectively, compared to 14.06% and 1.04%, respectively, for the fourth quarter of 2006.
Fourth Quarter 2007 highlights include:
· | Revenues from wealth management services were up 4 percent from third quarter 2007 and up 11 percent compared to the fourth quarter a year ago. |
· | Noninterest income (excluding securities gains) amounted to 43% of total revenues for the quarter. |
· | Commercial loan growth continued to be strong with an increase of $30.2 million in the quarter. Commercial loans grew by 16 percent, or $92.9 million, for the full year 2007. |
· | Fourth quarter net interest margin declined 16 basis points from the third quarter of 2007. |
John C. Warren, Washington Trust Chairman and CEO stated, "Despite unfavorable economic and market conditions, Washington Trust's fourth quarter and year-end 2007 earnings were strong, particularly in comparison with our peers in the region. Our performance was driven by solid growth in both the wealth management and commercial lending areas." Warren added, "We recognize that 2008 will once again be a challenging year, but we will continue to focus on the keys to our success: providing superior service, maintaining very good asset quality, generating diversified earnings, and investing in our future. We believe that the increase in our loan loss provision is a prudent response to the conditions we
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are seeing. We continue to be pleased with the strong growth in our commercial loan portfolio, but have general concerns with the overall economic environment.”
Net income for the year ended December 31, 2007 was $23.8 million, or $1.75 per diluted share, compared to $25.0 million, or $1.82 per diluted share, for 2006. Results for the year 2007 included $1.1 million in debt prepayment charges, recorded in noninterest expense in the first quarter of 2007 as a result of prepayments of higher cost Federal Home Loan Bank of Boston (“FHLBB”) advances as well as a $700 thousand increase in the provision for loan losses. There were no debt prepayment penalty charges in 2006. The returns on average equity and average assets for the year ended December 31, 2007 were 13.48% and 0.99%, respectively, compared to 14.99% and 1.04%, respectively, for the prior year.
RESULTS OF OPERATIONS
Net interest income totaled $14.8 million for the fourth quarter of 2007, down $473 thousand, or 3 percent, compared to the third quarter of 2007 and down $139 thousand, or 1 percent, from the fourth quarter a year ago. On a year to date basis, net interest income declined $1.5 million, or 2.5 percent, from 2006. The decline in net interest income was due to the fact that rates paid on deposits and borrowings have risen faster than earning asset yields and a higher rate of growth was experienced in higher cost deposit categories.
The net interest margin (annualized tax-equivalent net interest income as a percentage of average earning assets) for the fourth quarter 2007 was 2.65%, down 16 basis points from the third quarter of 2007 and down 9 basis points from the fourth quarter of 2006. The decline in net interest margin from the third quarter of 2007 was attributable to decreases in yields on prime-related commercial and consumer loans resulting from actions taken by the Federal Reserve to reduce short-term interest rates, with little commensurate reduction in deposit rates paid during the same period. The decline in net interest margin from the fourth quarter of 2006 is attributable to more rapid increases in rates paid on deposit and FHLB advances than asset yields, and to a change in funding mix resulting from declines in total average deposits and a resulting increase in higher cost FHLB advances. For the year 2007 net interest margin was 2.76%, compared to 2.80% for 2006.
Total noninterest income amounted to $11.3 million and $45.5 million, respectively, for the quarter and year ended December 31, 2007 as compared to $10.4 million and $42.2 million for the same periods in 2006. Net realized gains on sales of securities included in noninterest income amounted to $119 thousand and $455 thousand, respectively, for the quarter and year ended December 31, 2007 as compared to net realized losses of $16 thousand and net realized gains of $443 thousand, respectively, for the same periods in 2006.
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Excluding net realized gains and losses on securities, noninterest income amounted to $11.2 million for the fourth quarter of 2007, up $720 thousand, or 7 percent, from the same quarter a year ago. For the year 2007, noninterest income on this basis totaled $45.1 million and increased $3.3 million, or 8 percent, from the prior year. The increase was largely attributable to higher revenues from wealth management services. Wealth management revenues for the quarter and year ended December 31, 2007 were up $737 thousand (11 percent) and $2.6 million (10 percent), respectively. Wealth management assets under administration totaled $4.014 billion at December 31, 2007, down slightly for the fourth quarter. For the full year 2007, investment performance as well as successful business development efforts and customer cash flows contributed to an increase of $405 million, or 11 percent, from December 31, 2006.
Noninterest expenses amounted to $16.7 million for the fourth quarter of 2007, up $1.0 million, or 6 percent, from the same quarter a year earlier. For the year 2007, noninterest expenses totaled $68.9 million, up $3.6 million, or 6 percent, from 2006. Included in this increase was $1.1 million in debt prepayment penalties that were incurred in the first quarter of 2007 as a result of prepayments of higher cost FHLBB advances. Excluding the debt prepayment penalty expense, noninterest expenses for 2007 increased $2.5 million, or 4 percent, over last year.
Income tax expense amounted to $2.6 million and $10.8 million, respectively, for the quarter and year ended December 31, 2007 as compared to $3.2 million and $12.1 million, respectively for the same periods in 2006. The Corporation’s effective tax rate for the quarter and year ended December 31, 2007 was 31.1% and 31.3%, respectively, down from 33.8% and 32.6%, respectively, for the same periods in 2006, primarily due to higher average balances in nontaxable state and municipal debt obligations.
ASSET QUALITY
Nonperforming assets (nonaccrual loans and property acquired though foreclosure) amounted to $4.3 million, or 0.17% of total assets, at December 31, 2007, compared to $2.7 million, or 0.11% of total
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assets, at December 31, 2006. There are no assets acquired through foreclosure on the balance sheet at December 31, 2007. Nonaccrual loans as a percent of total loans stood at 0.27% at December 31, 2007 compared to 0.18% of total loans at September 30, 2007 and 0.19% of total loans at December 31, 2006.
Total 30 day+ delinquencies amounted to $7.0 million, or 0.45% of total loans, at December 31, 2007, up $1.2 million in the fourth quarter of 2007, but down $191 thousand from the balance at December 31, 2006. The $1.2 million increase in total 30 day+ delinquencies in the fourth quarter of 2007 was primarily due to an increase in the commercial category that was offset in part by declines in residential and consumer loan delinquencies.
Total residential mortgage and consumer loan 30 day+ delinquencies declined in the fourth quarter to $2.3 million, or 0.26% of these loans, at December 31, 2007, compared to $3.6 million, or 0.42%, at September 30, 2007. Total 90 day+ delinquencies in the residential mortgage and consumer loans portfolios amounted to $441 thousand (two loans) and $86 thousand (two loans), respectively, as of December 31, 2007. Total nonaccrual loans, which include the 90 day+ delinquencies, amounted to $1.2 million and $271 thousand in the residential mortgage and consumer loan categories, respectively, at December 31, 2007. The Corporation has never offered a sub-prime or Alt-A residential mortgage loan program.
The Corporation’s loan loss provision charged to earnings amounted to $1.0 million and $1.9 million for the quarter and year ended December 31, 2007, respectively, compared to $300 thousand and $1.2 million, respectively, for the same periods in 2006. The increase in the fourth quarter 2007 provision for loan losses was based on management’s assessment of various factors affecting the loan portfolio, including, among others, growth in the portfolio, ongoing evaluation of credit quality, with particular emphasis on the commercial portfolio, and general economic conditions. Net charge-offs amounted to $517 thousand for 2007, including $195 thousand in the fourth quarter of 2007, compared to net charge-offs of $224 thousand for the year 2006.
The Corporation will continue to assess the adequacy of its allowance for loan losses in accordance with its established policies. The provision for loan losses in 2008 is expected to increase somewhat above the 2007 level, subject to the achievement of anticipated portfolio growth and the future evaluation of economic conditions.
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The allowance for loan losses was $20.3 million, or 1.29% of total loans, at December 31, 2007, compared to $18.9 million, or 1.29% of total loans, at December 31, 2006, and $19.5 million, or 1.29% of total loans, at September 30, 2007.
FINANCIAL CONDITION
Total assets were $2.540 billion at December 31, 2007, up $140.5 million from December 31, 2006. Total loans grew $113.7 million, or 8 percent, during 2007 and amounted to $1.6 billion. Commercial loans increased $92.9 million (16 percent), residential loans increased by 11.0 million (2 percent), and consumer loans increased by $9.8 million (3 percent), during the year. The investment securities portfolio totaled $751.8 million at December 31, 2007, up $48.0 million from December 31, 2006. Included in the investment securities portfolio at December 31, 2007 were mortgage-backed securities with a fair value of $469.4 million. All of the Corporation’s mortgage-backed securities are issued by U.S. Government sponsored agencies. The Corporation reclassified its Held To Maturity portfolio to the Available For Sale category during the second quarter of 2007.
Total deposits decreased by $31.8 million from December 31, 2006. Excluding brokered certificates of deposit, in-market deposits were up $14.0 million during 2007. Declines in demand and savings deposits were offset by increases in money market accounts and in-market certificates of deposit. FHLBB advances totaled $616.4 million at December 31, 2007, up $141.9 million from December 31, 2006. Other borrowings increased $17.9 million in 2007, mainly due to an increase in securities sold under repurchase agreements.
Total shareholders’ equity amounted to $186.5 million at December 31, 2007, compared to $173.1 million at December 31, 2006. Under the Corporation’s 2006 Stock Repurchase Plan, 185,400 shares were repurchased at a total cost of $4.8 million during the year ended December 31, 2007. There were no shares repurchased in the fourth quarter. Book value per share as of December 31, 2007 and December 31, 2006 amounted to $13.97 and $12.89, respectively.
DIVIDENDS DECLARED
The Board of Directors declared a quarterly dividend of 20 cents per share for the quarter ended December 31, 2007. The dividend was paid on January 11, 2008 to shareholders of record on January 3, 2008.
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CONFERENCE CALL
Washington Trust Chairman and Chief Executive Officer John C. Warren, and David V. Devault, Executive Vice President, Secretary, Treasurer, and Chief Financial Officer, will host a conference call on Wednesday, January 23, 2008 at 8:30 a.m. (Eastern Time) to discuss the Corporation’s fourth quarter and year end results. This call is being webcast by TalkPoint and can be accessed through the Investor Relations section of the Washington Trust website, www.washtrust.com. A replay of the call will be posted in this same location on the website shortly after the conclusion of the call. You may also listen to a replay by dialing (877) 344-7529 and entering Conference ID #: 414901. The replay will be available until 11:59 p.m. on January 31, 2008.
BACKGROUND
Washington Trust Bancorp, Inc. is the parent of The Washington Trust Company, a Rhode Island state-chartered bank founded in 1800. Washington Trust offers personal banking, business banking and wealth management services through its offices in Rhode Island, Massachusetts and southeastern Connecticut. Washington Trust Bancorp, Inc.’s common stock trades on the NASDAQ Global MarketÒ under the symbol WASH. Investor information is available on the Corporation’s web site: www.washtrust.com.
FORWARD-LOOKING STATEMENTS
This press release contains certain statements that may be considered “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, including statements regarding our strategy, effectiveness of investment programs, evaluations of future interest rate trends and liquidity, expectations as to growth in assets, deposits and results of operations, success of acquisitions, future operations, market position, financial position, and prospects, plans, goals and objectives of management are forward-looking statements. The actual results, performance or achievements of the Corporation could differ materially from those projected in the forward-looking statements as a result of, among other factors, changes in general national or regional economic conditions, changes in interest rates, reductions in the market value of wealth management assets under administration, reductions in loan demand, reductions in deposit levels necessitating increased borrowing to fund loans and investments, changes in loan collectibility, default and charge-off rates, changes in the size and nature of the Corporation’s competition, changes in legislation or regulation and accounting principles, policies and guidelines, and changes in the assumptions used in making such forward-looking statements. The Corporation assumes no obligation to update forward-looking statements or update the reasons actual results, performance or achievements could differ materially from those provided in the forward-looking statements, except as required by law.
Washington Trust Bancorp, Inc. and Subsidiaries | |
CONSOLIDATED BALANCE SHEETS | |
| | | (unaudited) | |
| (Dollars in thousands) | | December 31, | | | December 31, | |
| | | 2007 | | | 2006 | |
Assets: | | | | | | |
| Cash and due from banks | | $ | 32,790 | | | $ | 54,337 | |
| Federal funds sold | | | 7,600 | | | | 16,425 | |
| Other short-term investments | | | 722 | | | | 1,147 | |
| Mortgage loans held for sale | | | 1,981 | | | | 2,148 | |
| Securities: | | | | | | | | |
| Available for sale, at fair value; amortized cost $750,583 in 2007 and $525,966 in 2006 | | | 751,778 | | | | 526,396 | |
| Held to maturity, at cost; fair value $175,369 in 2006 | | | − | | | | 177,455 | |
| Total securities | | | 751,778 | | | | 703,851 | |
| Federal Home Loan Bank stock, at cost | | | 31,725 | | | | 28,727 | |
| Loans: | | | | | | | | |
| Commercial and other | | | 680,266 | | | | 587,397 | |
| Residential real estate | | | 599,671 | | | | 588,671 | |
| Consumer | | | 293,715 | | | | 283,918 | |
| Total loans | | | 1,573,652 | | | | 1,459,986 | |
| Less allowance for loan losses | | | 20,277 | | | | 18,894 | |
| Net loans | | | 1,553,375 | | | | 1,441,092 | |
| Premises and equipment, net | | | 25,420 | | | | 24,307 | |
| Accrued interest receivable | | | 11,427 | | | | 11,268 | |
| Investment in bank-owned life insurance | | | 41,363 | | | | 39,770 | |
| Goodwill | | | 50,479 | | | | 44,558 | |
| Identifiable intangible assets, net | | | 11,433 | | | | 12,816 | |
| Other assets | | | 19,847 | | | | 18,719 | |
| Total assets | | $ | 2,539,940 | | | $ | 2,399,165 | |
| | | | | | | | | |
Liabilities: | | | | | | | | |
| Deposits: | | | | | | | | |
| Demand deposits | | $ | 175,542 | | | $ | 186,533 | |
| NOW accounts | | | 164,944 | | | | 175,479 | |
| Money market accounts | | | 321,600 | | | | 286,998 | |
| Savings accounts | | | 176,278 | | | | 205,998 | |
| Time deposits | | | 807,841 | | | | 822,989 | |
| Total deposits | | | 1,646,205 | | | | 1,677,997 | |
| Dividends payable | | | 2,677 | | | | 2,556 | |
| Federal Home Loan Bank advances | | | 616,417 | | | | 474,561 | |
| Junior subordinated debentures | | | 22,681 | | | | 22,681 | |
| Other borrowings | | | 32,560 | | | | 14,684 | |
| Accrued expenses and other liabilities | | | 32,887 | | | | 33,630 | |
| Total liabilities | | | 2,353,427 | | | | 2,226,109 | |
| | | | | | | | | |
Shareholders’ Equity: | | | | | | | | |
| Common stock of $.0625 par value; authorized 30,000,000 shares; | | | | | | | | |
| issued 13,492,110 shares in 2007 and 2006 | | | 843 | | | | 843 | |
| Paid-in capital | | | 34,874 | | | | 35,893 | |
| Retained earnings | | | 154,647 | | | | 141,548 | |
| Accumulated other comprehensive loss | | | (239 | ) | | | (3,515 | ) |
| Treasury stock, at cost; 137,652 shares in 2007 and 62,432 in 2006 | | | (3,612 | ) | | | (1,713 | ) |
| Total shareholders’ equity | | | 186,513 | | | | 173,056 | |
| Total liabilities and shareholders’ equity | | $ | 2,539,940 | | | $ | 2,399,165 | |
Washington Trust Bancorp, Inc. and Subsidiaries | |
CONSOLIDATED STATEMENTS OF INCOME | |
| | |
| (Dollars and shares in thousands, except per share amounts) | | (unaudited) | |
| | | Three Months | | | Twelve Months | |
| Periods ended December 31, | | 2007 | | | 2006 | | | 2007 | | | 2006 | |
| Interest income: | | | | | | | | | | | | |
| Interest and fees on loans | | $ | 25,340 | | | $ | 23,733 | | | $ | 98,720 | | | $ | 92,190 | |
| Interest on securities: | | | | | | | | | | | | | | | | |
| Taxable | | | 7,967 | | | | 8,210 | | | | 31,163 | | | | 33,763 | |
| Nontaxable | | | 775 | | | | 514 | | | | 2,983 | | | | 1,618 | |
| Dividends on corporate stock and Federal Home Loan Bank stock | | | 665 | | | | 718 | | | | 2,737 | | | | 2,842 | |
| Interest on federal funds sold and other short-term investments | | | 181 | | | | 204 | | | | 831 | | | | 721 | |
| Total interest income | | | 34,928 | | | | 33,379 | | | | 136,434 | | | | 131,134 | |
| Interest expense: | | | | | | | | | | | | | | | | |
| Deposits | | | 13,090 | | | | 13,110 | | | | 52,422 | | | | 46,982 | |
| Federal Home Loan Bank advances | | | 6,318 | | | | 4,801 | | | | 21,641 | | | | 20,916 | |
| Junior subordinated debentures | | | 338 | | | | 338 | | | | 1,352 | | | | 1,352 | |
| Other | | | 345 | | | | 154 | | | | 1,075 | | | | 410 | |
| Total interest expense | | | 20,091 | | | | 18,403 | | | | 76,490 | | | | 69,660 | |
| Net interest income | | | 14,837 | | | | 14,976 | | | | 59,944 | | | | 61,474 | |
| Provision for loan losses | | | 1,000 | | | | 300 | | | | 1,900 | | | | 1,200 | |
| Net interest income after provision for loan losses | | | 13,837 | | | | 14,676 | | | | 58,044 | | | | 60,274 | |
| Noninterest income: | | | | | | | | | | | | | | | | |
| Wealth management services: | | | | | | | | | | | | | | | | |
| Trust and investment advisory fees | | | 5,498 | | | | 5,063 | | | | 21,124 | | | | 19,099 | |
| Mutual fund fees | | | 1,430 | | | | 1,092 | | | | 5,430 | | | | 4,665 | |
| Financial planning, commissions and other service fees | | | 547 | | | | 583 | | | | 2,462 | | | | 2,616 | |
| Wealth management services | | | 7,475 | | | | 6,738 | | | | 29,016 | | | | 26,380 | |
| Service charges on deposit accounts | | | 1,154 | | | | 1,248 | | | | 4,713 | | | | 4,915 | |
| Merchant processing fees | | | 1,425 | | | | 1,380 | | | | 6,710 | | | | 6,208 | |
| Income from bank-owned life insurance | | | 427 | | | | 396 | | | | 1,593 | | | | 1,410 | |
| Net gains on loan sales and commissions on loans originated for others | | | 288 | | | | 394 | | | | 1,493 | | | | 1,423 | |
| Net realized gains (losses) on securities | | | 119 | | | | (16 | ) | | | 455 | | | | 443 | |
| Other income | | | 400 | | | | 293 | | | | 1,529 | | | | 1,404 | |
| Total noninterest income | | | 11,288 | | | | 10,433 | | | | 45,509 | | | | 42,183 | |
| Noninterest expense: | | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | | 9,791 | | | | 9,598 | | | | 39,986 | | | | 38,698 | |
| Net occupancy | | | 1,074 | | | | 982 | | | | 4,150 | | | | 3,888 | |
| Equipment | | | 909 | | | | 818 | | | | 3,473 | | | | 3,370 | |
| Merchant processing costs | | | 1,193 | | | | 1,167 | | | | 5,686 | | | | 5,257 | |
| Outsourced services | | | 570 | | | | 505 | | | | 2,180 | | | | 2,009 | |
| Advertising and promotion | | | 557 | | | | 405 | | | | 2,024 | | | | 1,894 | |
| Legal, audit and professional fees | | | 463 | | | | 295 | | | | 1,761 | | | | 1,637 | |
| Amortization of intangibles | | | 326 | | | | 384 | | | | 1,383 | | | | 1,593 | |
| Debt prepayment penalties | | | - | | | | - | | | | 1,067 | | | | - | |
| Other | | | 1,842 | | | | 1,586 | | | | 7,196 | | | | 6,989 | |
| Total noninterest expense | | | 16,725 | | | | 15,740 | | | | 68,906 | | | | 65,335 | |
| Income before income taxes | | | 8,400 | | | | 9,369 | | | | 34,647 | | | | 37,122 | |
| Income tax expense | | | 2,613 | | | | 3,166 | | | | 10,847 | | | | 12,091 | |
| Net income | | $ | 5,787 | | | $ | 6,203 | | | | 23,800 | | | $ | 25,031 | |
| | | | | | | | | | | | | | | | | |
| Weighted average shares outstanding - basic | | | 13,347.5 | | | | 13,452.5 | | | | 13,355.5 | | | | 13,424.1 | |
| Weighted average shares outstanding - diluted | | | 13,580.7 | | | | 13,769.3 | | | | 13,604.1 | | | | 13,723.2 | |
| Per share information: | | | | | | | | | | | | | | | �� | |
| Basic earnings per share | | $ | 0.43 | | | $ | 0.46 | | | $ | 1.78 | | | $ | 1.86 | |
| Diluted earnings per share | | $ | 0.43 | | | $ | 0.45 | | | $ | 1.75 | | | $ | 1.82 | |
| Cash dividends declared per share | | $ | 0.20 | | | $ | 0.19 | | | $ | 0.80 | | | $ | 0.76 | |
Washington Trust Bancorp, Inc. and Subsidiaries | |
SELECTED FINANCIAL HIGHLIGHTS (unaudited) | |
| | |
| | | At or for the Quarters Ended | |
| | | | | | | | | | | | | | | | |
| | | Dec. 31, | | | Sept. 30, | | | June 30, | | | Mar. 31, | | | Dec. 31, | |
| (Dollars in thousands, except per share amounts) | | 2007 | | | 2007 | | | 2007 | | | 2007 | | | 2006 | |
Financial Data | | | | | | | | | | | | | | | |
| Total assets | | $ | 2,539,940 | | | $ | 2,431,762 | | | $ | 2,393,882 | | | $ | 2,399,962 | | | $ | 2,399,165 | |
| Total loans | | | 1,573,652 | | | | 1,514,493 | | | | 1,489,174 | | | | 1,470,200 | | | | 1,459,986 | |
| Total securities | | | 751,778 | | | | 688,709 | | | | 676,204 | | | | 706,406 | | | | 703,851 | |
| Total deposits | | | 1,646,205 | | | | 1,655,887 | | | | 1,669,089 | | | | 1,683,592 | | | | 1,677,997 | |
| Total shareholders equity | | | 186,513 | | | | 177,897 | | | | 171,188 | | | | 175,527 | | | | 173,056 | |
| Net income | | | 5,787 | | | | 6,556 | | | | 5,482 | | | | 5,975 | | | | 6,203 | |
| | | | | | | | | | | | | | | | | | | | | |
Per Share Data | | | | | | | | | | | | | | | | | | | | |
| Basic earnings per share | | $ | 0.43 | | | $ | 0.49 | | | $ | 0.41 | | | $ | 0.45 | | | $ | 0.46 | |
| Diluted earnings per share | | $ | 0.43 | | | $ | 0.48 | | | $ | 0.40 | | | $ | 0.44 | | | $ | 0.45 | |
| Dividends declared per share | | $ | 0.20 | | | $ | 0.20 | | | $ | 0.20 | | | $ | 0.20 | | | $ | 0.19 | |
| Book value per share | | $ | 13.97 | | | $ | 13.33 | | | $ | 12.87 | | | $ | 13.12 | | | $ | 12.89 | |
| Tangible book value per share | | $ | 9.33 | | | $ | 8.66 | | | $ | 8.61 | | | $ | 8.86 | | | $ | 8.61 | |
| Market value per share | | $ | 25.23 | | | $ | 26.97 | | | $ | 25.21 | | | $ | 26.81 | | | $ | 27.89 | |
| | | | | | | | | | | | | | | | | | | | | |
Key Ratios | | | | | | | | | | | | | | | | | | | | |
| Return on average assets | | | 0.94 | % | | | 1.10 | % | | | 0.92 | % | | | 1.00 | % | | | 1.04 | % |
| Return on average equity | | | 12.73 | % | | | 14.99 | % | | | 12.57 | % | | | 13.66 | % | | | 14.06 | % |
| | | | | | | | | | | | | | | | | | | | | |
Capital Ratios | | | | | | | | | | | | | | | | | | | | |
| Tier 1 risk-based capital | | | 9.10 | % | | | 9.11 | % | | | 9.40 | % | | | 9.47 | % | | | 9.57 | % |
| Total risk-based capital | | | 10.39 | % | | | 10.43 | % | | | 10.73 | % | | | 10.84 | % | | | 10.96 | % |
| Tier 1 leverage ratio | | | 6.09 | % | | | 6.11 | % | | | 6.16 | % | | | 6.14 | % | | | 6.01 | % |
| | | | | | | | | | | | | | | | | | | | | |
Average Yields (taxable equivalent basis) | | | | | | | | | | | | | | | | | | | | |
Assets | | | | | | | | | | | | | | | | | | | | |
| Residential real estate loans | | | 5.41 | % | | | 5.35 | % | | | 5.31 | % | | | 5.32 | % | | | 5.18 | % |
| Commercial and other loans | | | 7.39 | % | | | 7.62 | % | | | 7.64 | % | | | 7.86 | % | | | 7.77 | % |
| Consumer loans | | | 6.74 | % | | | 7.01 | % | | | 6.98 | % | | | 6.95 | % | | | 6.98 | % |
| Total loans | | | 6.51 | % | | | 6.62 | % | | | 6.59 | % | | | 6.66 | % | | | 6.55 | % |
| Federal funds sold and | | | | | | | | | | | | | | | | | | | | |
| other short-term investments | | | 4.72 | % | | | 5.10 | % | | | 4.36 | % | | | 5.75 | % | | | 5.43 | % |
| Taxable debt securities | | | 5.19 | % | | | 5.16 | % | | | 5.17 | % | | | 5.07 | % | | | 4.86 | % |
| Nontaxable debt securities | | | 5.59 | % | | | 5.61 | % | | | 5.65 | % | | | 5.69 | % | | | 5.80 | % |
| Corporate stocks and FHLBB stock | | | 7.00 | % | | | 7.03 | % | | | 7.15 | % | | | 7.46 | % | | | 7.11 | % |
| Total securities | | | 5.33 | % | | | 5.31 | % | | | 5.32 | % | | | 5.28 | % | | | 5.06 | % |
| Total interest-earning assets | | | 6.12 | % | | | 6.20 | % | | | 6.16 | % | | | 6.19 | % | | | 6.03 | % |
Liabilities | | | | | | | | | | | | | | | | | | | | |
| NOW accounts | | | 0.20 | % | | | 0.17 | % | | | 0.15 | % | | | 0.16 | % | | | 0.18 | % |
| Money market accounts | | | 3.93 | % | | | 3.90 | % | | | 3.92 | % | | | 3.88 | % | | | 3.94 | % |
| Savings accounts | | | 1.32 | % | | | 1.32 | % | | | 1.35 | % | | | 1.40 | % | | | 1.14 | % |
| Time deposits | | | 4.55 | % | | | 4.60 | % | | | 4.61 | % | | | 4.57 | % | | | 4.47 | % |
| FHLBB advances | | | 4.56 | % | | | 4.44 | % | | | 4.35 | % | | | 4.31 | % | | | 4.16 | % |
| Junior subordinated debentures | | | 5.91 | % | | | 5.91 | % | | | 5.98 | % | | | 6.04 | % | | | 5.91 | % |
| Other | | | 4.36 | % | | | 4.47 | % | | | 4.51 | % | | | 4.73 | % | | | 4.91 | % |
| Total interest-bearing liabilities | | | 3.85 | % | | | 3.78 | % | | | 3.77 | % | | | 3.73 | % | | | 3.64 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Interest rate spread (taxable equivalent basis) | | | 2.27 | % | | | 2.42 | % | | | 2.39 | % | | | 2.46 | % | | | 2.39 | % |
| Net interest margin (taxable equivalent basis) | | | 2.65 | % | | | 2.81 | % | | | 2.76 | % | | | 2.81 | % | | | 2.74 | % |
| | | | | | | | | | | | | | | | | | | | | |
Wealth Management Assets (1) | | | | | | | | | | | | | | | | | | | | |
| Market value of assets under administration | | $ | 4,014,352 | | | $ | 4,025,877 | | | $ | 3,867,674 | | | $ | 3,715,987 | | | $ | 3,609,180 | |
| | | | | | | | | | | | | | | | | | | | | |
(1) Certain prior period amounts have been adjusted to conform to the current year presentation.
Washington Trust Bancorp, Inc. and Subsidiaries |
SELECTED FINANCIAL HIGHLIGHTS (unaudited) |
| |
| | | At or for the Quarters Ended | |
| | | Dec. 31, | | | Sept. 30, | | | June 30, | | | Mar. 31, | | | Dec. 31, |
| (Dollars in thousands) | | 2007 | | | 2007 | | | 2007 | | | 2007 | | | 2006 |
Period End Balances | | | | | | | | | | | | | | |
Loans | | | | | | | | | | | | | | |
| Commercial: | | | | | | | | | | | | | | |
| Mortgages | | $ | 278,821 | | | $ | 276,995 | | | $ | 265,560 | | | $ | 271,817 | | | $ | 282,019 | |
| Construction and development | | | 60,361 | | | | 48,899 | | | | 43,755 | | | | 33,092 | | | | 32,233 | |
| Other | | | 341,084 | | | | 324,129 | | | | 313,673 | | | | 294,261 | | | | 273,145 | |
| Total commercial | | | 680,266 | | | | 650,023 | | | | 622,988 | | | | 599,170 | | | | 587,397 | |
| Residential real estate: | | | | | | | | | | | | | | | | | | |
| Mortgages | | | 588,628 | | | | 566,776 | | | | 572,321 | | | | 577,823 | | | | 577,522 | |
| Homeowner construction | | | 11,043 | | | | 12,040 | | | | 11,071 | | | | 11,742 | | | | 11,149 | |
| Total residential real estate | | | 599,671 | | | | 578,816 | | | | 583,392 | | | | 589,565 | | | | 588,671 | |
| Consumer: | | | | | | | | | | | | | | | | | | |
| Home equity lines | | | 144,429 | | | | 139,732 | | | | 139,256 | | | | 142,548 | | | | 145,676 | |
| Home equity loans | | | 99,827 | | | | 99,798 | | | | 97,253 | | | | 94,521 | | | | 93,947 | |
| Other | | | 49,459 | | | | 46,124 | | | | 46,285 | | | | 44,396 | | | | 44,295 | |
| Total consumer | | | 293,715 | | | | 285,654 | | | | 282,794 | | | | 281,465 | | | | 283,918 | |
| Total loans | | $ | 1,573,652 | | | $ | 1,514,493 | | | $ | 1,489,174 | | | $ | 1,470,200 | | | $ | 1,459,986 | |
Deposits | | | | | | | | | | | | | | | | | | |
| Demand deposits | | $ | 175,542 | | | $ | 182,830 | | | $ | 177,210 | | | $ | 175,010 | | | $ | 186,533 | |
| NOW accounts | | | 164,944 | | | | 172,378 | | | | 174,715 | | | | 176,006 | | | | 175,479 | |
| Money market accounts | | | 321,600 | | | | 312,257 | | | | 290,046 | | | | 290,273 | | | | 286,998 | |
| Savings accounts | | | 176,278 | | | | 189,157 | | | | 196,105 | | | | 204,465 | | | | 205,998 | |
| Time deposits | | | 807,841 | | | | 799,265 | | | | 831,013 | | | | 837,838 | | | | 822,989 | |
| Total deposits | | $ | 1,646,205 | | | $ | 1,655,887 | | | $ | 1,669,089 | | | $ | 1,683,592 | | | $ | 1,677,997 | |
| | | | | | | | | | | | | | | | | | | |
| Brokered deposits included in time deposits | | | 129,798 | | | | 130,017 | | | | 159,297 | | | | 163,089 | | | | 175,618 | |
| | | | | | | | | | | | | | | | | | | |
Asset Quality Data | | | | | | | | | | | | | | | | | | |
Allowance for Loan Losses | | | | | | | | | | | | | | | | | | | | |
| Balance at beginning of period | | $ | 19,472 | | | $ | 19,327 | | | $ | 19,360 | | | $ | 18,894 | | | $ | 18,645 | |
| Provision charged to earnings | | | 1,000 | | | | 300 | | | | 300 | | | | 300 | | | | 300 | |
| Net charge-offs | | | (195 | ) | | | (155 | ) | | | (333 | ) | | | 166 | | | | (51 | ) |
| Balance at end of period | | $ | 20,277 | | | $ | 19,472 | | | $ | 19,327 | | | $ | 19,360 | | | $ | 18,894 | |
| | | | | | | | | | | | | | | | | | | | | |
Loans 30 days or More Past Due | | | | | | | | | | | | | | | | | | | | |
| Commercial categories | | $ | 4,726 | | | $ | 2,239 | | | $ | 7,224 | | | $ | 6,935 | | | $ | 5,807 | |
| Residential mortgages | | | 2,100 | | | | 3,266 | | | | 1,697 | | | | 914 | | | $ | 1,299 | |
| Consumer loans | | | 197 | | | | 358 | | | | 145 | | | | 169 | | | | 108 | |
| Total | | $ | 7,023 | | | $ | 5,863 | | | $ | 9,066 | | | $ | 8,018 | | | $ | 7,214 | |
| | | | | | | | | | | | | | | | | | | | | |
Nonperforming Assets | | | | | | | | | | | | | | | | | | | | |
| Commercial mortgages | | $ | 1,094 | | | $ | 1,099 | | | $ | 1,385 | | | $ | 1,157 | | | $ | 981 | |
| Commercial construction and development | | | – | | | | – | | | | – | | | | – | | | | – | |
| Other commercial | | | 1,781 | | | | 581 | | | | 645 | | | | 1,021 | | | | 831 | |
| Residential real estate | | | 1,158 | | | | 731 | | | | 698 | | | | 709 | | | | 721 | |
| Consumer | | | 271 | | | | 262 | | | | 241 | | | | 216 | | | | 190 | |
| Total nonaccrual loans | | $ | 4,304 | | | $ | 2,673 | | | $ | 2,969 | | | $ | 3,103 | | | $ | 2,723 | |
| Other real estate owned, net | | | - | �� | | | - | | | | - | | | | - | | | | - | |
| Total nonperforming assets | | $ | 4,304 | | | $ | 2,673 | | | $ | 2,969 | | | $ | 3,103 | | | $ | 2,723 | |
| | | | | | | | | | | | | | | | | | | | | |
| Loans 30 days or more past due to total loans | | | 0.45 | % | | | 0.39 | % | | | 0.61 | % | | | 0.55 | % | | | 0.49 | % |
| Nonperforming assets to total assets | | | 0.17 | % | | | 0.11 | % | | | 0.12 | % | | | 0.13 | % | | | 0.11 | % |
| Nonaccrual loans to total loans | | | 0.27 | % | | | 0.18 | % | | | 0.20 | % | | | 0.21 | % | | | 0.19 | % |
| Allowance for loan losses to nonaccrual loans | | | 471.12 | % | | | 728.47 | % | | | 650.96 | % | | | 623.91 | % | | | 693.87 | % |
| Allowance for loan losses to total loans | | | 1.29 | % | | | 1.29 | % | | | 1.30 | % | | | 1.32 | % | | | 1.29 | % |
Washington Trust Bancorp, Inc. and Subsidiaries | |
SELECTED FINANCIAL HIGHLIGHTS (unaudited) | |
| | |
| | | Years Ended | |
| | | December 31, | | | December 31, | |
| (Dollars and shares in thousands, except per share amounts) | | 2007 | | | 2006 | |
| | | | | | | |
Operating Results | | | | | | |
| Net interest income | | $ | 59,944 | | | $ | 61,474 | |
| Provision for loan losses | | | 1,900 | | | | 1,200 | |
| Net realized gains on securities | | | 455 | | | | 443 | |
| Other noninterest income | | | 45,054 | | | | 41,740 | |
| Noninterest expenses | | | 68,906 | | | | 65,335 | |
| Income tax expense | | | 10,847 | | | | 12,091 | |
| Net income | | | 23,800 | | | | 25,031 | |
| | | | | | | | | |
| Basic earnings per share | | $ | 1.78 | | | $ | 1.86 | |
| Diluted earnings per share | | $ | 1.75 | | | $ | 1.82 | |
| Dividends declared per share | | $ | 0.80 | | | $ | 0.76 | |
| | | | | | | | | |
| Weighted average shares outstanding - basic | | | 13,355.5 | | | | 13,424.1 | |
| Weighted average shares outstanding - diluted | | | 13,604.1 | | | | 13,723.2 | |
| Shares outstanding at end of period | | | 13,354.5 | | | | 13,429.7 | |
| | | | | | | | | |
Key Ratios | | | | | | | | |
| Return on average assets | | | 0.99 | % | | | 1.04 | % |
| Return on average equity | | | 13.48 | % | | | 14.99 | % |
| Interest rate spread (taxable equivalent basis) | | | 2.39 | % | | | 2.47 | % |
| Net interest margin (taxable equivalent basis) | | | 2.76 | % | | | 2.80 | % |
| | | | | | | | | |
Allowance for Loan Losses | | | | | | | | |
| Balance at beginning of period | | $ | 18,894 | | | $ | 17,918 | |
| Provision charged to earnings | | | 1,900 | | | | 1,200 | |
| Net charge-offs | | | (517 | ) | | | (224 | ) |
| Balance at end of period | | $ | 20,277 | | | $ | 18,894 | |
| | | | | | | | | |
| Net charge-offs (recoveries) to average loans | | | .03 | % | | | .02 | % |
| | | | | | | | | |
| | | | | | | | | |
| | | Three Months | | | Year | |
| | | Ended | | | Ended | |
| (Dollars in thousands) | | Dec. 31, 2007 | | | Dec. 31, 2007 | |
| | | | | | | | | |
Wealth Management Assets Under Administration (1) | | | | | | | | |
| Balance at beginning of period | | $ | 4,025,877 | | | $ | 3,609,180 | |
| Net investment appreciation (depreciation) and income | | | (11,751 | ) | | | 272,398 | |
| Net customer cash flows | | | 226 | | | | 132,774 | |
| Balance at end of period | | $ | 4,014,352 | | | $ | 4,014,352 | |
| | | | | | | | | |
(1) Certain prior period amounts have been adjusted to conform to the current year presentation.
Washington Trust Bancorp, Inc. and Subsidiaries | |
CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited) | |
| | |
| | | | |
| Three months ended December 31, | | 2007 | | | 2006 | |
| | | Average | | | | | | Yield/ | | | Average | | | | | | Yield/ | |
| (Dollars in thousands) | | Balance | | | Interest | | | Rate | | | Balance | | | Interest | | | Rate | |
Assets | | | | | | | | | | | | | | | | | | |
| Residential real estate loans | | $ | 592,025 | | | $ | 8,069 | | | | 5.41 | % | | $ | 592,055 | | | $ | 7,732 | | | | 5.18 | % |
| Commercial and other loans | | | 666,142 | | | | 12,407 | | | | 7.39 | % | | | 567,356 | | | | 11,115 | | | | 7.77 | % |
| Consumer loans | | | 288,975 | | | | 4,910 | | | | 6.74 | % | | | 280,118 | | | | 4,929 | | | | 6.98 | % |
| Total loans | | | 1,547,142 | | | | 25,386 | | | | 6.51 | % | | | 1,439,529 | | | | 23,776 | | | | 6.55 | % |
| Federal funds sold and | | | | | | | | | | | | | | | | | | | | | | | | |
| other short-term investments | | | 15,147 | | | | 181 | | | | 4.72 | % | | | 14,940 | | | | 204 | | | | 5.43 | % |
| Taxable debt securities | | | 608,827 | | | | 7,967 | | | | 5.19 | % | | | 670,523 | | | | 8,210 | | | | 4.86 | % |
| Nontaxable debt securities | | | 80,637 | | | | 1,137 | | | | 5.59 | % | | | 54,024 | | | | 789 | | | | 5.80 | % |
| Corporate stocks and FHLBB stock | | | 41,791 | | | | 735 | | | | 7.00 | % | | | 45,233 | | | | 811 | | | | 7.11 | % |
| Total securities | | | 746,402 | | | | 10,020 | | | | 5.33 | % | | | 784,720 | | | | 10,014 | | | | 5.06 | % |
| Total interest-earning assets | | | 2,293,544 | | | | 35,406 | | | | 6.12 | % | | | 2,224,249 | | | | 33,790 | | | | 6.03 | % |
| Non interest-earning assets | | | 170,781 | | | | | | | | | | | | 171,361 | | | | | | | | | |
| Total assets | | $ | 2,464,325 | | | | | | | | | | | $ | 2,395,610 | | | | | | | | | |
Liabilities and Shareholders’ Equity | | | | | | | | | | | | | | | | | | | | | | | | |
| NOW accounts | | $ | 161,722 | | | $ | 83 | | | | 0.20 | % | | $ | 170,111 | | | $ | 76 | | | | 0.18 | % |
| Money market accounts | | | 324,685 | | | | 3,217 | | | | 3.93 | % | | | 306,036 | | | | 3,037 | | | | 3.94 | % |
| Savings accounts | | | 180,977 | | | | 601 | | | | 1.32 | % | | | 201,031 | | | | 577 | | | | 1.14 | % |
| Time deposits | | | 801,107 | | | | 9,189 | | | | 4.55 | % | | | 836,645 | | | | 9,420 | | | | 4.47 | % |
| FHLBB advances | | | 549,388 | | | | 6,318 | | | | 4.56 | % | | | 457,690 | | | | 4,801 | | | | 4.16 | % |
| Junior subordinated debentures | | | 22,681 | | | | 338 | | | | 5.91 | % | | | 22,681 | | | | 338 | | | | 5.91 | % |
| Other | | | 31,319 | | | | 345 | | | | 4.36 | % | | | 12,472 | | | | 154 | | | | 4.91 | % |
| Total interest-bearing liabilities | | | 2,071,879 | | | | 20,091 | | | | 3.85 | % | | | 2,006,666 | | | | 18,403 | | | | 3.64 | % |
| Demand deposits | | | 176,242 | | | | | | | | | | | | 186,017 | | | | | | | | | |
| Other liabilities | | | 34,298 | | | | | | | | | | | | 26,482 | | | | | | | | | |
| Shareholders’ equity | | | 181,906 | | | | | | | | | | | | 176,445 | | | | | | | | | |
| Total liabilities and shareholders’ equity | | $ | 2,464,325 | | | | | | | | | | | $ | 2,395,610 | | | | | | | | | |
| Net interest income (FTE) | | | | | | $ | 15,315 | | | | | | | | | | | $ | 15,387 | | | | | |
| Interest rate spread | | | | | | | | | | | 2.27 | % | | | | | | | | | | | 2.39 | % |
| Net interest margin | | | | | | | | | | | 2.65 | % | | | | | | | | | | | 2.74 | % |
Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:
| (Dollars in thousands) | | | | | | |
| | | | | | | |
| Three months ended December 31, | | 2007 | | | 2006 | |
| Commercial and other loans | | $ | 46 | | | $ | 43 | |
| Nontaxable debt securities | | | 362 | | | | 275 | |
| Corporate stocks | | | 70 | | | | 93 | |
| Total | | $ | 478 | | | $ | 411 | |
Washington Trust Bancorp, Inc. and Subsidiaries | |
CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited) | |
| | |
| | | | |
| Years ended December 31, | | 2007 | | | 2006 | |
| | | Average | | | | | | Yield/ | | | Average | | | | | | Yield/ | |
| (Dollars in thousands) | | Balance | | | Interest | | | Rate | | | Balance | | | Interest | | | Rate | |
Assets | | | | | | | | | | | | | | | | | | |
| Residential real estate loans | | $ | 589,619 | | | $ | 31,540 | | | | 5.35 | % | | $ | 590,245 | | | $ | 30,237 | | | | 5.12 | % |
| Commercial and other loans | | | 626,309 | | | | 47,713 | | | | 7.62 | % | | | 564,310 | | | | 43,409 | | | | 7.69 | % |
| Consumer loans | | | 283,873 | | | | 19,634 | | | | 6.92 | % | | | 274,764 | | | | 18,748 | | | | 6.82 | % |
| Total loans | | | 1,499,801 | | | | 98,887 | | | | 6.59 | % | | | 1,429,319 | | | | 92,394 | | | | 6.46 | % |
| Federal funds sold and | | | | | | | | | | | | | | | | | | | | | | | | |
| other short-term investments | | | 16,759 | | | | 831 | | | | 4.96 | % | | | 14,548 | | | | 721 | | | | 4.96 | % |
| Taxable debt securities | | | 605,443 | | | | 31,163 | | | | 5.15 | % | | | 712,870 | | | | 33,763 | | | | 4.74 | % |
| Nontaxable debt securities | | | 77,601 | | | | 4,368 | | | | 5.63 | % | | | 42,977 | | | | 2,486 | | | | 5.79 | % |
| Corporate stocks and FHLBB stock | | | 42,544 | | | | 3,047 | | | | 7.16 | % | | | 48,643 | | | | 3,205 | | | | 6.59 | % |
| Total securities | | | 742,347 | | | | 39,409 | | | | 5.31 | % | | | 819,038 | | | | 40,175 | | | | 4.91 | % |
| Total interest-earning assets | | | 2,242,148 | | | | 138,296 | | | | 6.17 | % | | | 2,248,357 | | | | 132,569 | | | | 5.90 | % |
| Non interest-earning assets | | | 165,561 | | | | | | | | | | | | 159,115 | | | | | | | | | |
| Total assets | | $ | 2,407,709 | | | | | | | | | | | $ | 2,407,472 | | | | | | | | | |
Liabilities and Shareholders’ Equity | | | | | | | | | | | | | | | | | | | | | | | | |
| NOW accounts | | $ | 166,580 | | | $ | 285 | | | | 0.17 | % | | $ | 173,137 | | | $ | 302 | | | | 0.17 | % |
| Money market accounts | | | 303,138 | | | | 11,846 | | | | 3.91 | % | | | 262,613 | | | | 9,063 | | | | 3.45 | % |
| Savings accounts | | | 194,342 | | | | 2,619 | | | | 1.35 | % | | | 198,040 | | | | 1,464 | | | | 0.74 | % |
| Time deposits | | | 821,951 | | | | 37,672 | | | | 4.58 | % | | | 856,979 | | | | 36,153 | | | | 4.22 | % |
| FHLBB advances | | | 489,229 | | | | 21,641 | | | | 4.42 | % | | | 509,611 | | | | 20,916 | | | | 4.10 | % |
| Junior subordinated debentures | | | 22,681 | | | | 1,352 | | | | 5.96 | % | | | 22,681 | | | | 1,352 | | | | 5.96 | % |
| Other | | | 23,990 | | | | 1,075 | | | | 4.48 | % | | | 8,627 | | | | 410 | | | | 4.76 | % |
| Total interest-bearing liabilities | | | 2,021,911 | | | | 76,490 | | | | 3.78 | % | | | 2,031,688 | | | | 69,660 | | | | 3.43 | % |
| Demand deposits | | | 177,342 | | | | | | | | | | | | 185,322 | | | | | | | | | |
| Other liabilities | | | 31,886 | | | | | | | | | | | | 23,517 | | | | | | | | | |
| Shareholders’ equity | | | 176,570 | | | | | | | | | | | | 166,945 | | | | | | | | | |
| Total liabilities and shareholders’ equity | | $ | 2,407,709 | | | | | | | | | | | $ | 2,407,472 | | | | | | | | | |
| Net interest income (FTE) | | | | | | $ | 61,806 | | | �� | | | | | | | | $ | 62,909 | | | | | |
| Interest rate spread | | | | | | | | | | | 2.39 | % | | | | | | | | | | | 2.47 | % |
| Net interest margin | | | | | | | | | | | 2.76 | % | | | | | | | | | | | 2.80 | % |
Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:
| (Dollars in thousands) | | | | | | |
| | | | | | | |
| Years ended December 31, | | 2007 | | | 2006 | |
| Commercial and other loans | | $ | 167 | | | $ | 204 | |
| Nontaxable debt securities | | | 1,385 | | | | 868 | |
| Corporate stocks | | | 310 | | | | 363 | |
| Total | | $ | 1,862 | | | $ | 1,435 | |
