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: July 21, 2008
FOR IMMEDIATE RELEASE
Washington Trust Announces Increased Second Quarter 2008 Earnings
Westerly, Rhode Island…Washington Trust Bancorp, Inc. (NASDAQ Global Select; symbol: WASH), parent company of The Washington Trust Company, today announced second quarter 2008 net income of $6.1 million, or 45 cents per diluted share; a 12.5 percent increase over the 40 cents per diluted share reported for the second quarter a year ago. The returns on average equity and average assets for the second quarter of 2008 were 12.88% and 0.92%, respectively, compared to 12.57% and 0.92%, respectively, for the same period in 2007.
Second Quarter 2008 Overview:
● | Net interest income increased by $1.3 million from the second quarter last year primarily due to higher earning-asset levels and lower deposit costs. |
● | The loan loss provision charged to earnings was $1.4 million, due largely to growth in the loan portfolio as well as an ongoing evaluation of credit quality and general economic conditions. |
● | Wealth Management revenues for the second quarter of 2008 were up by 2 percent from the same quarter a year ago. Wealth management assets under administration amounted to $3.9 billion at June 30, 2008, up $45 million in the second quarter and up $56 million from the June 30, 2007 balance. |
● | Net losses on securities for the second quarter of 2008 totaled $53 thousand as compared to net losses of $700 thousand in the same quarter last year. |
● | Noninterest expenses for the second quarter of 2008 were up by 2 percent compared to the same quarter last year. |
● | Commercial loan growth continued to be strong with an increase of $68.7 million in the quarter, representing the seventh consecutive quarter of growth. Commercial loans have increased $172.0 million, or 28 percent, from the balance at June 30, 2007. |
● | Nonperforming assets remain at manageable levels with a modest increase from $5.7 million, or 0.22% of total assets, at March 31, 2008 to $6.2 million, or 0.23% of total assets, at June 30, 2008. Net charge-offs were $161 thousand in the second quarter of 2008. |
-M O R E-
Washington Trust
Page Two, July 21, 2008
Commenting on the quarter, John C. Warren, Chairman and Chief Executive Officer, said, "Washington Trust’s second quarter results were particularly noteworthy considering the deterioration of economic conditions and declines in the financial markets. In the face of these strong headwinds we have achieved solid earnings through active management and believe our disciplined credit culture is serving us well.”
Net income for the six months ended June 30, 2008 amounted to $11.9 million, or 88 cents per diluted share, compared to the $11.5 million, or 84 cents per diluted share, for the same period in 2007. Results for the first half of 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. There have been no debt prepayment penalty charges recognized in 2008. The returns on average equity and average assets for the first six months of 2008 were 12.55% and 0.91%, respectively, compared to 13.12% and 0.96%, respectively, for the same period in 2007.
RESULTS OF OPERATIONS
Net interest income for the second quarter of 2008 increased $1.1 million, or 7.5 percent, compared to the first quarter of 2008 and $1.3 million, or 8.6 percent, from the second quarter a year ago, due primarily to higher earning-asset levels and lower deposit costs. On a year to date basis, net interest income is up $1.5 million, or 5.0 percent, from 2007, due to growth in interest-earning assets.
The net interest margin (annualized tax-equivalent net interest income as a percentage of average earning assets) for the second quarter of 2008 was 2.71%, up 12 basis points from the first quarter of 2008 and down 5 basis points from the second quarter of 2007. The increase in the margin on a linked quarter basis was largely attributable to lower deposit and funding costs. For the six months ended June 30, 2008 the net interest margin was 2.65% compared to 2.79% for the same period in 2007. The decline in net interest margin on a year to date basis reflects 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 less commensurate reduction in deposit rates paid during the same period.
For the quarters ended June 30, 2008 and 2007 net losses on securities amounted to $53 thousand and $700 thousand, respectively. Included in the second quarter 2008 net losses of $53 thousand were impairment charges of $1.1 million recognized on three preferred stock holdings and realized gains of $1.1 million on sales of equity securities. Net losses on securities for the second quarter of 2007 included
- M O R E - -
Washington Trust
Page Three, July 21, 2008
approximately $1.3 million of net losses on sales of certain U.S. Government sponsored agency and mortgage-backed securities, $195 thousand of gains from certain debt and equity securities that were called prior to their maturity by the issuers, and $397 thousand of gains resulting from the Corporation’s annual contribution of appreciated equity securities to the Corporation’s charitable foundation. For the first six months of 2008, net losses on securities amounted to $98 thousand as compared to net gains of $336 thousand for the same period in 2007.
Excluding net gains and losses on securities, noninterest income amounted to $12.2 million for the second quarter of 2008, up $389 thousand, or 3 percent, from the same period a year ago. Wealth management revenues for the second quarter of 2008 were up $157 thousand, or 2 percent, from the second quarter of 2007. For the first half of 2008, noninterest income on this basis totaled $23.3 million, up $1.3 million, or 6 percent, from the first half of 2007. Wealth management revenues for the six months ended June 30, 2008 increased by $545 thousand, or 4 percent, from the same period in 2007. Wealth management assets under administration totaled $3.924 billion at June 30, 2008, down $90.8 million, or 2 percent, from December 31, 2007 and up $55.9 million, or 1 percent, from June 30, 2007. The decline in assets under administration in the first six months of 2008 was primarily due to lower valuations in the equity markets.
Noninterest expenses amounted to $18.1 million for the second quarter of 2008, up $294 thousand from the same quarter a year ago. Included in noninterest expenses in the second quarter of 2007 was $520 thousand representing the cost of the Corporation’s contribution of appreciated equity securities to its charitable foundation. Washington Trust expects to make its annual contribution to the foundation later this year. For the six months ended June 30, 2008, noninterest expenses totaled $35.2 million, up $327 thousand, or 1 percent, from the same period in 2007. Excluding first quarter 2007 debt prepayment penalties and the second quarter 2007 charitable contribution, noninterest expenses for the first six months of 2008 increased $1.9 million, or 6 percent, from the same period in 2007. Approximately 40 percent of the 2008 increase, on this basis, represents costs attributable to our wealth management business, an increase in FDIC deposit insurance costs and to operating expenses related to a de novo branch opened in June 2007.
Income tax expense amounted to $2.8 million and $5.5 million, respectively, for the three and six months ended June 30, 2008, as compared to $2.5 million and $5.2 million, respectively, for the same periods in 2007. The Corporation’s effective tax rate for the three and six months ended June 30, 2008 was 31.6% and 31.7%, respectively, as compared to 31.4% for each of the same periods last year.
- M O R E - -
Washington Trust
Page Four, July 21, 2008
ASSET QUALITY
Nonperforming assets (nonaccrual loans and property acquired through foreclosure) amounted to $6.2 million, or 0.23% of total assets, at June 30, 2008, compared to $4.3 million, or 0.17% of total assets, at December 31, 2007 and $3.0 million, or 0.12% of total assets, at June 30, 2007. There were no properties acquired through foreclosure on the balance sheet at June 30, 2008, December 31, 2007 and June 30, 2007.
Nonaccrual loans as a percent of total loans stood at 0.36% at June 30, 2008 compared to 0.27% of total loans at December 31, 2007 and 0.20% of total loans at June 30, 2007. The increase in nonaccrual loans was largely due to certain commercial loan relationships moving into the non-accruing loan classification.
Total 30 day+ delinquencies amounted to $15.0 million, or 0.88% of total loans, at June 30, 2008, up $8.0 million in the first six months of 2008 and up $5.9 million from the balance a year earlier. Commercial loans represent $12.4 million, or 83%, of total delinquencies at June 30, 2008.
Washington Trust has never offered a subprime residential loan program. Total residential mortgage and consumer loan 30 day+ delinquencies increased modestly in the first half of 2008 to $2.6 million, or 0.29% of these loans, at June 30, 2008, compared to $2.3 million, or 0.26%, at December 31, 2007. Total 90 day+ delinquencies in the residential mortgage portfolio amounted to $408 thousand (two loans) at June 30, 2008. There were no consumer loans in the 90 day+ delinquency category at June 30, 2008. Total nonaccrual loans, which include the 90 day+ delinquencies, amounted to $1.1 million and $170 thousand in the residential mortgage and consumer loan categories, respectively, at June 30, 2008.
The Corporation’s loan loss provision charged to earnings amounted to $1.4 million and $1.850 million, respectively, for the three and six months ended June 30, 2008, compared to $300 thousand and $600 thousand for the same periods in 2007. The 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 and general economic conditions. Net charge-offs amounted to $161 thousand and $164 thousand, respectively, for the quarter and first six months of 2008, as compared to net charge-offs of $333 thousand and $167 thousand for the same periods in 2007.
The Corporation will continue to assess the adequacy of its allowance for loan losses in accordance with its established policies. The allowance for loan losses was $22.0 million, or 1.29% of total loans, at June 30, 2008, compared to $20.3 million, or 1.29% of total loans, at December 31, 2007, and $19.3 million, or 1.30% of total loans, at June 30, 2007.
- M O R E - -
Washington Trust
Page Five, July 21, 2008
FINANCIAL CONDITION
Total assets were $2.733 billion at June 30, 2008, up $193.0 million from December 31, 2007. Total loans grew by $132.0 million, or 8.4 percent, during the first six months of 2008 and amounted to $1.7 billion. Commercial loans rose by $68.7 million, or 9.5 percent, in the second quarter of 2008 and by $114.7 million, or 16.9 percent, in the first six months of 2008. Residential loans increased by $30.5 million, or 5.3 percent, in the second quarter of 2008, including purchases of $30.8 million. On a year to date basis, residential loans increased by $8.7 million, or 1.4 percent. Consumer loans increased by $7.9 million, or 2.7 percent, in the second quarter of 2008 and by $8.6 million, or 2.9 percent, in the first six months of 2008. The investment securities portfolio totaled $790.1 million at June 30, 2008, up $38.3 million from December 31, 2007. This increase includes an increase of $60.9 million in mortgage-backed securities during the second quarter of 2008. At June 30, 2008, the fair value of mortgage-backed securities amounted to $586.1 million. All of the Corporation’s mortgage-backed securities are issued by U.S. Government or U.S. Government-sponsored agencies.
Total deposits decreased by $36.7 million in the first six months of 2008. Excluding brokered certificates of deposit, in-market deposits fell by $20.6 million, or 1.4 percent, from the balance at December 31, 2007. Runoff occurred in money market and time deposits, while demand deposits and NOW account balances rose by $18.1 million in the first half of 2008. FHLBB advances totaled $845.3 million at June 30, 2008, up $228.9 million from the balance at December 31, 2007.
Total shareholders’ equity amounted to $186.4 million at June 30, 2008, compared to $186.5 million at December 31, 2007. Book value per share as of June 30, 2008 and December 31, 2007 amounted to $13.91 and $13.97, respectively. The Corporation’s capital ratios at June 30, 2008 place the Corporation in the “well-capitalized” category according to regulatory standards.
As previously reported, in April 2008, the Corporation sponsored the creation of Washington Preferred Capital Trust (“Washington Preferred”). Washington Preferred is a newly formed Delaware statutory trust created for the sole purpose of issuing trust preferred securities and investing the proceeds in junior subordinated debentures of the Corporation.
- M O R E - -
Washington Trust
Page Six, July 21, 2008
In April 2008, Washington Preferred issued $10,000,000 of trust preferred securities in a private placement to two institutional investors. The proceeds of the trust preferred securities, along with the proceeds of $310,000 from the issuance of common securities by Washington Preferred to the Corporation, were used to purchase $10,310,000 of the Corporation's floating rate junior subordinated debentures. Like the trust preferred securities, the junior subordinated debentures mature in June 2038 and bear interest at a rate equal to the three-month LIBOR rate plus 3.50%. In April 2008, the Corporation also entered into a five-year interest rate swap contract with a notional amount of $10,000,000. Under the terms of this contract, Washington Trust will pay a fixed rate of 6.97% and receive a rate equal to three-month LIBOR plus 3.50%.
DIVIDENDS DECLARED
The Board of Directors declared a quarterly dividend of 21 cents per share for the quarter ended June 30, 2008, an increase of one cent per share from the most recent quarterly dividend rate. The dividend was paid on July 11, 2008 to shareholders of record on June 30, 2008. This represents the 16th consecutive year with a dividend increase for Washington Trust shareholders.
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 Tuesday, July 22, 2008 at 8:30 a.m. (Eastern Time) to discuss the Corporation’s second quarter results. This call is being webcast by SNL IR Solutions 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 #: 420625. The replay will be available until 11:59 p.m. on July 29, 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 Select® under the symbol WASH. Investor information is available on the Corporation’s web site: www.washtrust.com.
- M O R E - -
Washington Trust
Page Seven, July 21, 2008
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, reductions in net interest income resulting from interest rate volatility as well as changes in the balance and mix of loans and deposits, reductions in the market value of wealth management assets under administration, reductions in loan demand, 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. In addition, the factors described under “Risk Factors” in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2007, as filed with the Securities and Exchange Commission, may result in these differences. You should carefully review all of these factors, and you should be aware that there may be other factors that could cause these differences. 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) | June 30, | December 31, | ||||||
2008 | 2007 | |||||||
Assets: | ||||||||
Cash and noninterest-bearing balances due from banks | $ | 39,800 | $ | 30,817 | ||||
Interest-bearing balances due from banks | 575 | 1,973 | ||||||
Federal funds sold and securities purchased under resale agreements | 4,959 | 7,600 | ||||||
Other short-term investments | 1,236 | 722 | ||||||
Mortgage loans held for sale | 2,711 | 1,981 | ||||||
Securities available for sale, at fair value; | ||||||||
amortized cost $799,938 in 2008 and $750,583 in 2007 | 790,064 | 751,778 | ||||||
Federal Home Loan Bank stock, at cost | 42,008 | 31,725 | ||||||
Loans: | ||||||||
Commercial and other | 795,013 | 680,266 | ||||||
Residential real estate | 608,351 | 599,671 | ||||||
Consumer | 302,286 | 293,715 | ||||||
Total loans | 1,705,650 | 1,573,652 | ||||||
Less allowance for loan losses | 21,963 | 20,277 | ||||||
Net loans | 1,683,687 | 1,553,375 | ||||||
Premises and equipment, net | 25,170 | 25,420 | ||||||
Accrued interest receivable | 10,617 | 11,427 | ||||||
Investment in bank-owned life insurance | 42,262 | 41,363 | ||||||
Goodwill | 50,479 | 50,479 | ||||||
Identifiable intangible assets, net | 10,781 | 11,433 | ||||||
Other assets | 28,640 | 19,847 | ||||||
Total assets | $ | 2,732,989 | $ | 2,539,940 | ||||
Liabilities: | ||||||||
Deposits: | ||||||||
Demand deposits | $ | 187,865 | $ | 175,542 | ||||
NOW accounts | 170,733 | 164,944 | ||||||
Money market accounts | 305,860 | 321,600 | ||||||
Savings accounts | 177,490 | 176,278 | ||||||
Time deposits | 767,594 | 807,841 | ||||||
Total deposits | 1,609,542 | 1,646,205 | ||||||
Dividends payable | 2,819 | 2,677 | ||||||
Federal Home Loan Bank advances | 845,291 | 616,417 | ||||||
Junior subordinated debentures | 32,991 | 22,681 | ||||||
Other borrowings | 26,484 | 32,560 | ||||||
Accrued expenses and other liabilities | 29,440 | 32,887 | ||||||
Total liabilities | 2,546,567 | 2,353,427 | ||||||
Shareholders’ Equity: | ||||||||
Common stock of $.0625 par value; authorized 30,000,000 shares; | ||||||||
issued 13,503,876 shares in 2008 and 13,492,110 shares in 2007 | 844 | 843 | ||||||
Paid-in capital | 34,852 | 34,874 | ||||||
Retained earnings | 160,593 | 154,647 | ||||||
Accumulated other comprehensive loss | (7,098 | ) | (239 | ) | ||||
Treasury stock, at cost; 105,677 shares in 2008 and 137,652 in 2007 | (2,769 | ) | (3,612 | ) | ||||
Total shareholders’ equity | 186,422 | 186,513 | ||||||
Total liabilities and shareholders’ equity | $ | 2,732,989 | $ | 2,539,940 |
Washington Trust Bancorp, Inc. and Subsidiaries | ||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(Dollars and shares in thousands, except per share amounts) | (unaudited) | |||||||||||||||
Three Months | Six Months | |||||||||||||||
Periods ended June 30, | 2008 | 2007 | 2008 | 2007 | ||||||||||||
Interest income: | ||||||||||||||||
Interest and fees on loans | $ | 24,406 | $ | 24,414 | $ | 49,376 | $ | 48,348 | ||||||||
Interest on securities: | ||||||||||||||||
Taxable | 8,302 | 7,839 | 16,718 | 15,631 | ||||||||||||
Nontaxable | 786 | 759 | 1,566 | 1,427 | ||||||||||||
Dividends on corporate stock and Federal Home Loan Bank stock | 489 | 685 | 1,109 | 1,403 | ||||||||||||
Other interest income | 50 | 184 | 190 | 375 | ||||||||||||
Total interest income | 34,033 | 33,881 | 68,959 | 67,184 | ||||||||||||
Interest expense: | ||||||||||||||||
Deposits | 9,248 | 13,215 | 21,147 | 26,192 | ||||||||||||
Federal Home Loan Bank advances | 7,794 | 5,112 | 15,093 | 10,080 | ||||||||||||
Junior subordinated debentures | 509 | 338 | 847 | 676 | ||||||||||||
Other interest expense | 275 | 289 | 589 | 439 | ||||||||||||
Total interest expense | 17,826 | 18,954 | 37,676 | 37,387 | ||||||||||||
Net interest income | 16,207 | 14,927 | 31,283 | 29,797 | ||||||||||||
Provision for loan losses | 1,400 | 300 | 1,850 | 600 | ||||||||||||
Net interest income after provision for loan losses | 14,807 | 14,627 | 29,433 | 29,197 | ||||||||||||
Noninterest income: | ||||||||||||||||
Wealth management services: | ||||||||||||||||
Trust and investment advisory fees | 5,321 | 5,252 | 10,663 | 10,290 | ||||||||||||
Mutual fund fees | 1,445 | 1,352 | 2,786 | 2,614 | ||||||||||||
Financial planning, commissions and other service fees | 884 | 889 | 1,459 | 1,459 | ||||||||||||
Wealth management services | 7,650 | 7,493 | 14,908 | 14,363 | ||||||||||||
Service charges on deposit accounts | 1,208 | 1,220 | 2,368 | 2,345 | ||||||||||||
Merchant processing fees | 1,914 | 1,829 | 3,186 | 3,033 | ||||||||||||
Income from bank-owned life insurance | 453 | 399 | 900 | 790 | ||||||||||||
Net gains on loan sales and commissions on loans originated for others | 433 | 510 | 924 | 774 | ||||||||||||
Net (losses) gains on securities | (53 | ) | (700 | ) | (98 | ) | 336 | |||||||||
Other income | 554 | 372 | 1,015 | 730 | ||||||||||||
Total noninterest income | 12,159 | 11,123 | 23,203 | 22,371 | ||||||||||||
Noninterest expense: | ||||||||||||||||
Salaries and employee benefits | 10,411 | 10,285 | 20,754 | 20,097 | ||||||||||||
Net occupancy | 1,064 | 1,038 | 2,202 | 2,055 | ||||||||||||
Equipment | 977 | 861 | 1,921 | 1,693 | ||||||||||||
Merchant processing costs | 1,598 | 1,558 | 2,666 | 2,577 | ||||||||||||
Outsourced services | 742 | 535 | 1,378 | 1,054 | ||||||||||||
Advertising and promotion | 467 | 572 | 853 | 1,001 | ||||||||||||
Legal, audit and professional fees | 430 | 404 | 973 | 854 | ||||||||||||
Amortization of intangibles | 326 | 348 | 652 | 716 | ||||||||||||
Debt prepayment penalties | - | - | - | 1,067 | ||||||||||||
Other expenses | 2,039 | 2,159 | 3,797 | 3,755 | ||||||||||||
Total noninterest expense | 18,054 | 17,760 | 35,196 | 34,869 | ||||||||||||
Income before income taxes | 8,912 | 7,990 | 17,440 | 16,699 | ||||||||||||
Income tax expense | 2,817 | 2,508 | 5,529 | 5,242 | ||||||||||||
Net income | $ | 6,095 | $ | 5,482 | $ | 11,911 | $ | 11,457 | ||||||||
Weighted average shares outstanding - basic | 13,381.1 | 13,339.6 | 13,369.6 | 13,375.7 | ||||||||||||
Weighted average shares outstanding - diluted | 13,567.0 | 13,616.4 | 13,550.9 | 13,667.6 | ||||||||||||
Per share information: | ||||||||||||||||
Basic earnings per share | $ | 0.45 | $ | 0.41 | $ | 0.89 | $ | 0.86 | ||||||||
Diluted earnings per share | $ | 0.45 | $ | 0.40 | $ | 0.88 | $ | 0.84 | ||||||||
Cash dividends declared per share | $ | 0.21 | $ | 0.20 | $ | 0.41 | $ | 0.40 |
Washington Trust Bancorp, Inc. and Subsidiaries | ||||||||||||||||||||
SELECTED FINANCIAL HIGHLIGHTS (unaudited) | ||||||||||||||||||||
At or for the Quarters Ended | ||||||||||||||||||||
June 30, | Mar. 31, | Dec. 31, | Sept. 30, | June 30, | ||||||||||||||||
(Dollars in thousands, except per share amounts) | 2008 | 2008 | 2007 | 2007 | 2007 | |||||||||||||||
Financial Data | ||||||||||||||||||||
Total assets | $ | 2,732,989 | $ | 2,564,387 | $ | 2,539,940 | $ | 2,431,762 | $ | 2,393,882 | ||||||||||
Total loans | 1,705,650 | 1,598,582 | 1,573,652 | 1,514,493 | 1,489,174 | |||||||||||||||
Total securities | 790,064 | 747,053 | 751,778 | 688,709 | 676,204 | |||||||||||||||
Total deposits | 1,609,542 | 1,635,025 | 1,646,205 | 1,655,887 | 1,669,089 | |||||||||||||||
Total shareholders’ equity | 186,422 | 191,219 | 186,513 | 177,897 | 171,188 | |||||||||||||||
Net income | 6,095 | 5,816 | 5,787 | 6,556 | 5,482 | |||||||||||||||
Per Share Data | ||||||||||||||||||||
Basic earnings per share | $ | 0.45 | $ | 0.44 | $ | 0.43 | $ | 0.49 | $ | 0.41 | ||||||||||
Diluted earnings per share | $ | 0.45 | $ | 0.43 | $ | 0.43 | $ | 0.48 | $ | 0.40 | ||||||||||
Dividends declared per share | $ | 0.21 | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.20 | ||||||||||
Book value per share | $ | 13.91 | $ | 14.30 | $ | 13.97 | $ | 13.33 | $ | 12.87 | ||||||||||
Tangible book value per share | $ | 9.34 | $ | 9.70 | $ | 9.33 | $ | 8.66 | $ | 8.61 | ||||||||||
Market value per share | $ | 19.70 | $ | 24.82 | $ | 25.23 | $ | 26.97 | $ | 25.21 | ||||||||||
Key Ratios | ||||||||||||||||||||
Return on average assets | 0.92 | % | 0.90 | % | 0.94 | % | 1.10 | % | 0.92 | % | ||||||||||
Return on average equity | 12.88 | % | 12.22 | % | 12.73 | % | 14.99 | % | 12.57 | % | ||||||||||
Capital Ratios | ||||||||||||||||||||
Tier 1 risk-based capital | 9.44 | % | 9.23 | % | 9.10 | % | 9.11 | % | 9.40 | % | ||||||||||
Total risk-based capital | 10.69 | % | 10.49 | % | 10.39 | % | 10.43 | % | 10.73 | % | ||||||||||
Tier 1 leverage ratio | 6.32 | % | 5.93 | % | 6.09 | % | 6.11 | % | 6.16 | % | ||||||||||
Average Yields (taxable equivalent basis) | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Residential real estate loans | 5.55 | % | 5.55 | % | 5.41 | % | 5.35 | % | 5.31 | % | ||||||||||
Commercial and other loans | 6.51 | % | 6.95 | % | 7.39 | % | 7.62 | % | 7.64 | % | ||||||||||
Consumer loans | 5.48 | % | 6.18 | % | 6.74 | % | 7.01 | % | 6.98 | % | ||||||||||
Total loans | 5.98 | % | 6.28 | % | 6.51 | % | 6.62 | % | 6.59 | % | ||||||||||
Short-term investments, federal funds sold | ||||||||||||||||||||
and other | 1.64 | % | 2.69 | % | 4.72 | % | 5.10 | % | 4.36 | % | ||||||||||
Taxable debt securities | 4.86 | % | 5.06 | % | 5.19 | % | 5.16 | % | 5.17 | % | ||||||||||
Nontaxable debt securities | 5.67 | % | 5.68 | % | 5.59 | % | 5.61 | % | 5.65 | % | ||||||||||
Corporate stocks and FHLBB stock | 4.46 | % | 5.89 | % | 7.00 | % | 7.03 | % | 7.15 | % | ||||||||||
Total securities | 4.87 | % | 5.11 | % | 5.33 | % | 5.31 | % | 5.32 | % | ||||||||||
Total interest-earning assets | 5.60 | % | 5.89 | % | 6.12 | % | 6.20 | % | 6.16 | % | ||||||||||
Liabilities | ||||||||||||||||||||
NOW accounts | 0.19 | % | 0.19 | % | 0.20 | % | 0.17 | % | 0.15 | % | ||||||||||
Money market accounts | 1.79 | % | 3.13 | % | 3.93 | % | 3.90 | % | 3.92 | % | ||||||||||
Savings accounts | 0.50 | % | 1.00 | % | 1.32 | % | 1.32 | % | 1.35 | % | ||||||||||
Time deposits | 3.88 | % | 4.38 | % | 4.55 | % | 4.60 | % | 4.61 | % | ||||||||||
FHLBB advances | 4.15 | % | 4.37 | % | 4.56 | % | 4.44 | % | 4.35 | % | ||||||||||
Junior subordinated debentures | 6.34 | % | 5.99 | % | 5.91 | % | 5.91 | % | 5.98 | % | ||||||||||
Other | 4.60 | % | 4.32 | % | 4.36 | % | 4.47 | % | 4.51 | % | ||||||||||
Total interest-bearing liabilities | 3.18 | % | 3.63 | % | 3.85 | % | 3.78 | % | 3.77 | % | ||||||||||
Interest rate spread (taxable equivalent basis) | 2.42 | % | 2.26 | % | 2.27 | % | 2.42 | % | 2.39 | % | ||||||||||
Net interest margin (taxable equivalent basis) | 2.71 | % | 2.59 | % | 2.65 | % | 2.81 | % | 2.76 | % | ||||||||||
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||||||
SELECTED FINANCIAL HIGHLIGHTS (unaudited) | |||||||||||||||||||||
At or for the Quarters Ended | |||||||||||||||||||||
June 30, | Mar. 31, | Dec. 31, | Sept. 30, | June 30, | |||||||||||||||||
(Dollars in thousands) | 2008 | 2008 | 2007 | 2007 | 2007 | ||||||||||||||||
Wealth Management Assets Under Administration | |||||||||||||||||||||
Balance at beginning of period | $ | 3,878,746 | $ | 4,014,352 | $ | 4,025,877 | $ | 3,867,674 | $ | 3,715,987 | |||||||||||
Net investment (depreciation) appreciation & income | 10,420 | (201,915 | ) | (11,751 | ) | 122,424 | 113,656 | ||||||||||||||
Net customer cash flows | 34,429 | 66,309 | 226 | 35,779 | 38,031 | ||||||||||||||||
Balance at end of period | $ | 3,923,595 | $ | 3,878,746 | $ | 4,014,352 | $ | 4,025,877 | $ | 3,867,674 | |||||||||||
Period End Balances | |||||||||||||||||||||
Loans | |||||||||||||||||||||
Commercial: | Mortgages | $ | 361,623 | $ | 309,684 | $ | 278,821 | $ | 276,995 | $ | 265,560 | ||||||||||
Construction and development | 60,606 | 62,489 | 60,361 | 48,899 | 43,755 | ||||||||||||||||
Other | 372,784 | 354,142 | 341,084 | 324,129 | 313,673 | ||||||||||||||||
Total commercial | 795,013 | 726,315 | 680,266 | 650,023 | 622,988 | ||||||||||||||||
Residential: | Mortgages | 593,995 | 565,031 | 588,628 | 566,776 | 572,321 | |||||||||||||||
Homeowner construction | 14,356 | 12,861 | 11,043 | 12,040 | 11,071 | ||||||||||||||||
Total residential real estate | 608,351 | 577,892 | 599,671 | 578,816 | 583,392 | ||||||||||||||||
Consumer: | Home equity lines | 152,339 | 146,471 | 144,429 | 139,732 | 139,256 | |||||||||||||||
Home equity loans | 94,316 | 96,883 | 99,827 | 99,798 | 97,253 | ||||||||||||||||
Other | 55,631 | 51,021 | 49,459 | 46,124 | 46,285 | ||||||||||||||||
Total consumer | 302,286 | 294,375 | 293,715 | 285,654 | 282,794 | ||||||||||||||||
Total loans | $ | 1,705,650 | $ | 1,598,582 | $ | 1,573,652 | $ | 1,514,493 | $ | 1,489,174 | |||||||||||
Deposits | |||||||||||||||||||||
Demand deposits | $ | 187,865 | $ | 165,822 | $ | 175,542 | $ | 182,830 | $ | 177,210 | |||||||||||
NOW accounts | 170,733 | 174,146 | 164,944 | 172,378 | 174,715 | ||||||||||||||||
Money market accounts | 305,860 | 327,562 | 321,600 | 312,257 | 290,046 | ||||||||||||||||
Savings accounts | 177,490 | 177,110 | 176,278 | 189,157 | 196,105 | ||||||||||||||||
Time deposits | 767,594 | 790,385 | 807,841 | 799,265 | 831,013 | ||||||||||||||||
Total deposits | $ | 1,609,542 | $ | 1,635,025 | $ | 1,646,205 | $ | 1,655,887 | $ | 1,669,089 | |||||||||||
Brokered deposits included in time deposits | $ | 113,725 | $ | 126,972 | $ | 129,798 | $ | 130,017 | $ | 159,297 | |||||||||||
Securities Available for Sale | Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||
(Dollars in thousands) | Cost | Gains | Losses | Value | |||||||||||||||||
At June 30, 2008 | |||||||||||||||||||||
U.S. Treasury obligations and obligations of U.S. | |||||||||||||||||||||
government-sponsored agencies | $ | 82,002 | $ | 2,448 | $ | – | $ | 84,450 | |||||||||||||
Mortgage-backed securities issued by U.S. | |||||||||||||||||||||
government and government-sponsored agencies | 588,967 | 2,445 | (5,298 | ) | 586,114 | ||||||||||||||||
States and political subdivisions | 81,645 | 81 | (1,465 | ) | 80,261 | ||||||||||||||||
Trust preferred securities | 37,985 | – | (7,627 | ) | 30,358 | ||||||||||||||||
Corporate bonds | 1,746 | – | (13 | ) | 1,733 | ||||||||||||||||
Common and preferred stocks | 7,593 | 337 | (782 | ) | 7,148 | ||||||||||||||||
Total securities available for sale | $ | 799,938 | $ | 5,311 | $ | (15,185 | ) | $ | 790,064 | ||||||||||||
At December 31, 2007 | |||||||||||||||||||||
U.S. Treasury obligations and obligations of U.S. | |||||||||||||||||||||
government-sponsored agencies | $ | 136,721 | $ | 2,888 | $ | (10 | ) | $ | 139,599 | ||||||||||||
Mortgage-backed securities issued by U.S. | |||||||||||||||||||||
government and government-sponsored agencies | 469,197 | 2,899 | (2,708 | ) | 469,388 | ||||||||||||||||
States and political subdivisions | 80,634 | 499 | (239 | ) | 80,894 | ||||||||||||||||
Trust preferred securities | 37,995 | – | (3,541 | ) | 34,454 | ||||||||||||||||
Corporate bonds | 13,940 | 161 | – | 14,101 | |||||||||||||||||
Common and preferred stocks | 12,096 | 2,974 | (1,728 | ) | 13,342 | ||||||||||||||||
Total securities available for sale | $ | 750,583 | $ | 9,421 | $ | (8,226 | ) | $ | 751,778 | ||||||||||||
Washington Trust Bancorp, Inc. and Subsidiaries | ||||||||||||||||||||
SELECTED FINANCIAL HIGHLIGHTS (unaudited) | ||||||||||||||||||||
At or for the Quarters Ended | ||||||||||||||||||||
June 30, | Mar. 31, | Dec. 31, | Sept. 30, | June 30, | ||||||||||||||||
(Dollars in thousands) | 2008 | 2008 | 2007 | 2007 | 2007 | |||||||||||||||
Asset Quality Data | ||||||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||
Balance at beginning of period | $ | 20,724 | $ | 20,277 | $ | 19,472 | $ | 19,327 | $ | 19,360 | ||||||||||
Provision charged to earnings | 1,400 | 450 | 1,000 | 300 | 300 | |||||||||||||||
Charge-offs | (219 | ) | (106 | ) | (225 | ) | (182 | ) | (346 | ) | ||||||||||
Recoveries | 58 | 103 | 30 | 27 | 13 | |||||||||||||||
Balance at end of period | $ | 21,963 | $ | 20,724 | $ | 20,277 | $ | 19,472 | $ | 19,327 | ||||||||||
Past Due Loans | ||||||||||||||||||||
Loans 30–59 Days Past Due | ||||||||||||||||||||
Commercial categories | $ | 6,682 | $ | 2,240 | $ | 1,450 | $ | 726 | $ | 5,123 | ||||||||||
Residential mortgages | 1,624 | 475 | 1,620 | 2,744 | 883 | |||||||||||||||
Consumer loans | 476 | 43 | 73 | 282 | 92 | |||||||||||||||
Loans 30–59 days past due | $ | 8,782 | $ | 2,758 | $ | 3,143 | $ | 3,752 | $ | 6,098 | ||||||||||
Loans 60–89 Days Past Due | ||||||||||||||||||||
Commercial categories | $ | 2,091 | $ | 3,715 | $ | 1,313 | $ | 166 | $ | 443 | ||||||||||
Residential mortgages | 1 | 344 | 39 | 220 | 512 | |||||||||||||||
Consumer loans | 87 | 22 | 38 | – | – | |||||||||||||||
Loans 60-89 days past due | $ | 2,179 | $ | 4,081 | $ | 1,390 | $ | 386 | $ | 955 | ||||||||||
Loans 90 Days or more Past Due | ||||||||||||||||||||
Commercial categories | $ | 3,625 | $ | 3,088 | $ | 1,963 | $ | 1,347 | $ | 1,658 | ||||||||||
Residential mortgages | 408 | 441 | 441 | 302 | 302 | |||||||||||||||
Consumer loans | – | 36 | 86 | 76 | 53 | |||||||||||||||
Loans 90 days or more past due | $ | 4,033 | $ | 3,565 | $ | 2,490 | $ | 1,725 | $ | 2,013 | ||||||||||
Total Past Due Loans | ||||||||||||||||||||
Commercial categories | $ | 12,398 | $ | 9,043 | $ | 4,726 | $ | 2,239 | $ | 7,224 | ||||||||||
Residential mortgages | 2,033 | 1,260 | 2,100 | 3,266 | 1,697 | |||||||||||||||
Consumer loans | 563 | 101 | 197 | 358 | 145 | |||||||||||||||
Total past due loans | $ | 14,994 | $ | 10,404 | $ | 7,023 | $ | 5,863 | $ | 9,066 | ||||||||||
Nonperforming Assets | ||||||||||||||||||||
Commercial mortgages | $ | 1,991 | $ | 1,300 | $ | 1,094 | $ | 1,099 | $ | 1,385 | ||||||||||
Commercial construction and development | – | – | – | – | – | |||||||||||||||
Other commercial | 2,948 | 3,081 | 1,781 | 581 | 645 | |||||||||||||||
Residential real estate | 1,072 | 1,111 | 1,158 | 731 | 698 | |||||||||||||||
Consumer | 170 | 208 | 271 | 262 | 241 | |||||||||||||||
Total nonaccrual loans | $ | 6,181 | $ | 5,700 | $ | 4,304 | $ | 2,673 | $ | 2,969 | ||||||||||
Other real estate owned, net | – | – | - | - | - | |||||||||||||||
Total nonperforming assets | $ | 6,181 | $ | 5,700 | $ | 4,304 | $ | 2,673 | $ | 2,969 | ||||||||||
Total past due loans to total loans | 0.88 | % | 0.65 | % | 0.45 | % | 0.39 | % | 0.61 | % | ||||||||||
Nonperforming assets to total assets | 0.23 | % | 0.22 | % | 0.17 | % | 0.11 | % | 0.12 | % | ||||||||||
Nonaccrual loans to total loans | 0.36 | % | 0.36 | % | 0.27 | % | 0.18 | % | 0.20 | % | ||||||||||
Allowance for loan losses to nonaccrual loans | 355.33 | % | 363.58 | % | 471.12 | % | 728.47 | % | 650.96 | % | ||||||||||
Allowance for loan losses to total loans | 1.29 | % | 1.30 | % | 1.29 | % | 1.29 | % | 1.30 | % |
Washington Trust Bancorp, Inc. and Subsidiaries | ||||||||
SELECTED FINANCIAL HIGHLIGHTS (unaudited) | ||||||||
Six Months Ended | ||||||||
June 30, | June 30, | |||||||
(Dollars and shares in thousands, except per share amounts) | 2008 | 2007 | ||||||
Operating Results | ||||||||
Net interest income | $ | 31,283 | $ | 29,797 | ||||
Provision for loan losses | 1,850 | 600 | ||||||
Net (losses) gains on securities | (98 | ) | 336 | |||||
Other noninterest income | 23,301 | 22,035 | ||||||
Noninterest expenses | 35,196 | 34,869 | ||||||
Income tax expense | 5,529 | 5,242 | ||||||
Net income | 11,911 | 11,457 | ||||||
Basic earnings per share | $ | 0.89 | $ | 0.86 | ||||
Diluted earnings per share | $ | 0.88 | $ | 0.84 | ||||
Dividends declared per share | $ | 0.41 | $ | 0.40 | ||||
Weighted average shares outstanding - basic | 13,369.6 | 13,375.7 | ||||||
Weighted average shares outstanding - diluted | 13,550.9 | 13,667.6 | ||||||
Shares outstanding at end of period | 13,398.2 | 13,305.1 | ||||||
Key Ratios | ||||||||
Return on average assets | 0.91 | % | 0.96 | % | ||||
Return on average equity | 12.55 | % | 13.12 | % | ||||
Interest rate spread (taxable equivalent basis) | 2.34 | % | 2.43 | % | ||||
Net interest margin (taxable equivalent basis) | 2.65 | % | 2.79 | % | ||||
Allowance for Loan Losses | ||||||||
Balance at beginning of period | $ | 20,277 | $ | 18,894 | ||||
Provision charged to earnings | 1,850 | 600 | ||||||
Charge-offs | (326 | ) | (370 | ) | ||||
Recoveries | 162 | 203 | ||||||
Balance at end of period | $ | 21,963 | $ | 19,327 | ||||
Net charge-offs to average loans | .01 | % | .01 | % | ||||
Wealth Management Assets Under Administration | ||||||||
Balance at beginning of period | $ | 4,014,352 | $ | 3,609,180 | ||||
Net investment (depreciation) appreciation and income | (191,495 | ) | 161,725 | |||||
Net customer cash flows | 100,738 | 96,769 | ||||||
Balance at end of period | $ | 3,923,595 | $ | 3,867,674 | ||||
The following tables present average balance and interest rate information. Tax-exempt income is converted to a fully taxable equivalent basis using the statutory federal income tax rate. For dividends on corporate stocks, the 70% federal dividends received deduction is also used in the calculation of tax equivalency. Unrealized gains (losses) on available for sale securities are excluded from the average balance and yield calculations. Nonaccrual and renegotiated loans, as well as interest earned on these loans (to the extent recognized in the Consolidated Statements of Income) are included in amounts presented for loans.
Washington Trust Bancorp, Inc. and Subsidiaries | ||||||||||||||||||||||||
CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited) | ||||||||||||||||||||||||
Three months ended June 30, | 2008 | 2007 | ||||||||||||||||||||||
Average | Yield/ | Average | Yield/ | |||||||||||||||||||||
(Dollars in thousands) | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||||
Assets | ||||||||||||||||||||||||
Residential real estate loans | $ | 598,274 | $ | 8,257 | 5.55 | % | $ | 590,226 | $ | 7,812 | 5.31 | % | ||||||||||||
Commercial and other loans | 749,468 | 12,135 | 6.51 | % | 615,606 | 11,730 | 7.64 | % | ||||||||||||||||
Consumer loans | 297,802 | 4,059 | 5.48 | % | 282,408 | 4,911 | 6.98 | % | ||||||||||||||||
Total loans | 1,645,544 | 24,451 | 5.98 | % | 1,488,240 | 24,453 | 6.59 | % | ||||||||||||||||
Short-term investments, federal | ||||||||||||||||||||||||
funds sold and other | 12,214 | 50 | 1.64 | % | 16,951 | 184 | 4.36 | % | ||||||||||||||||
Taxable debt securities | 687,461 | 8,302 | 4.86 | % | 608,223 | 7,839 | 5.17 | % | ||||||||||||||||
Nontaxable debt securities | 81,649 | 1,152 | 5.67 | % | 78,964 | 1,112 | 5.65 | % | ||||||||||||||||
Corporate stocks and FHLBB stock | 49,169 | 546 | 4.46 | % | 42,806 | 763 | 7.15 | % | ||||||||||||||||
Total securities | 830,493 | 10,050 | 4.87 | % | 746,944 | 9,898 | 5.32 | % | ||||||||||||||||
Total interest-earning assets | 2,476,037 | 34,501 | 5.60 | % | 2,235,184 | 34,351 | 6.16 | % | ||||||||||||||||
Non interest-earning assets | 165,806 | 158,903 | ||||||||||||||||||||||
Total assets | $ | 2,641,843 | $ | 2,394,087 | ||||||||||||||||||||
Liabilities and Shareholders’ Equity | ||||||||||||||||||||||||
NOW accounts | $ | 167,755 | $ | 81 | 0.19 | % | $ | 168,742 | $ | 64 | 0.15 | % | ||||||||||||
Money market accounts | 315,075 | 1,399 | 1.79 | % | 293,245 | 2,869 | 3.92 | % | ||||||||||||||||
Savings accounts | 174,897 | 218 | 0.50 | % | 196,647 | 661 | 1.35 | % | ||||||||||||||||
Time deposits | 782,825 | 7,550 | 3.88 | % | 837,223 | 9,621 | 4.61 | % | ||||||||||||||||
FHLBB advances | 755,455 | 7,794 | 4.15 | % | 471,026 | 5,112 | 4.35 | % | ||||||||||||||||
Junior subordinated debentures | 32,311 | 509 | 6.34 | % | 22,681 | 338 | 5.98 | % | ||||||||||||||||
Other | 24,016 | 275 | 4.60 | % | 25,764 | 289 | 4.51 | % | ||||||||||||||||
Total interest-bearing liabilities | 2,252,334 | 17,826 | 3.18 | % | 2,015,328 | 18,954 | 3.77 | % | ||||||||||||||||
Demand deposits | 171,613 | 173,473 | ||||||||||||||||||||||
Other liabilities | 28,607 | 30,852 | ||||||||||||||||||||||
Shareholders’ equity | 189,289 | 174,434 | ||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 2,641,843 | $ | 2,394,087 | ||||||||||||||||||||
Net interest income (FTE) | $ | 16,675 | $ | 15,397 | ||||||||||||||||||||
Interest rate spread | 2.42 | % | 2.39 | % | ||||||||||||||||||||
Net interest margin | 2.71 | % | 2.76 | % |
Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:
(Dollars in thousands) | ||||||||
Three months ended June 30, | 2008 | 2007 | ||||||
Commercial and other loans | $ | 45 | $ | 39 | ||||
Nontaxable debt securities | 366 | 353 | ||||||
Corporate stocks | 57 | 78 | ||||||
Total | $ | 468 | $ | 470 |
Washington Trust Bancorp, Inc. and Subsidiaries | ||||||||||||||||||||||||
CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited) | ||||||||||||||||||||||||
Six months ended June 30, | 2008 | 2007 | ||||||||||||||||||||||
Average | Yield/ | Average | Yield/ | |||||||||||||||||||||
(Dollars in thousands) | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||||
Assets | ||||||||||||||||||||||||
Residential real estate loans | $ | 599,919 | $ | 16,554 | 5.55 | % | $ | 591,138 | $ | 15,585 | 5.32 | % | ||||||||||||
Commercial and other loans | 728,270 | 24,356 | 6.73 | % | 601,425 | 23,102 | 7.75 | % | ||||||||||||||||
Consumer loans | 295,301 | 8,556 | 5.83 | % | 281,992 | 9,736 | 6.96 | % | ||||||||||||||||
Total loans | 1,623,490 | 49,466 | 6.13 | % | 1,474,555 | 48,423 | 6.62 | % | ||||||||||||||||
Short-term investments, federal | ||||||||||||||||||||||||
funds sold and other | 16,600 | 190 | 2.30 | % | 15,231 | 375 | 4.97 | % | ||||||||||||||||
Taxable debt securities | 678,081 | 16,718 | 4.96 | % | 615,562 | 15,631 | 5.12 | % | ||||||||||||||||
Nontaxable debt securities | 81,337 | 2,295 | 5.67 | % | 74,332 | 2,090 | 5.67 | % | ||||||||||||||||
Corporate stocks and FHLBB stock | 48,014 | 1,232 | 5.16 | % | 43,136 | 1,563 | 7.30 | % | ||||||||||||||||
Total securities | 824,032 | 20,435 | 4.99 | % | 748,261 | 19,659 | 5.30 | % | ||||||||||||||||
Total interest-earning assets | 2,447,522 | 69,901 | 5.74 | % | 2,222,816 | 68,082 | 6.18 | % | ||||||||||||||||
Non interest-earning assets | 167,258 | 164,934 | ||||||||||||||||||||||
Total assets | $ | 2,614,780 | $ | 2,387,750 | ||||||||||||||||||||
Liabilities and Shareholders’ Equity | ||||||||||||||||||||||||
NOW accounts | $ | 165,132 | $ | 159 | 0.19 | % | $ | 169,206 | $ | 132 | 0.16 | % | ||||||||||||
Money market accounts | 321,476 | 3,951 | 2.47 | % | 293,613 | 5,680 | 3.90 | % | ||||||||||||||||
Savings accounts | 174,815 | 650 | 0.75 | % | 201,086 | 1,371 | 1.38 | % | ||||||||||||||||
Time deposits | 797,296 | 16,387 | 4.13 | % | 834,870 | 19,009 | 4.59 | % | ||||||||||||||||
FHLBB advances | 713,786 | 15,093 | 4.25 | % | 469,246 | 10,080 | 4.33 | % | ||||||||||||||||
Junior subordinated debentures | 27,496 | 847 | 6.20 | % | 22,681 | 676 | 6.01 | % | ||||||||||||||||
Other | 26,631 | 589 | 4.45 | % | 19,316 | 439 | 4.58 | % | ||||||||||||||||
Total interest-bearing liabilities | 2,226,632 | 37,676 | 3.40 | % | 2,010,018 | 37,387 | 3.75 | % | ||||||||||||||||
Demand deposits | 168,773 | 172,232 | ||||||||||||||||||||||
Other liabilities | 29,571 | 30,786 | ||||||||||||||||||||||
Shareholders’ equity | 189,804 | 174,714 | ||||||||||||||||||||||
Total liabilities and shareholders’ equity | �� | $ | 2,614,780 | $ | 2,387,750 | |||||||||||||||||||
Net interest income (FTE) | $ | 32,225 | $ | 30,695 | ||||||||||||||||||||
Interest rate spread | 2.34 | % | 2.43 | % | ||||||||||||||||||||
Net interest margin | 2.65 | % | 2.79 | % |
Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:
(Dollars in thousands) | ||
Six months ended June 30, | 2008 | 2007 |
Commercial and other loans | $90 | $75 |
Nontaxable debt securities | 729 | 663 |
Corporate stocks | 123 | 160 |
Total | $942 | $898 |