NASDAQ: WASH
Contact: Elizabeth B. Eckel
Senior Vice President, Marketing
Telephone: (401) 348-1309
E-mail: ebeckel@washtrust.com
Date: October 20, 2014
FOR IMMEDIATE RELEASE
Washington Trust Reports Record Earnings for Third Quarter 2014
WESTERLY, R.I., October 20, 2014 (GLOBE NEWSWIRE)…Washington Trust Bancorp, Inc. (Nasdaq:WASH), parent company of The Washington Trust Company, today announced net income of $10.5 million, or 62 cents per diluted share, for the third quarter of 2014, up from second quarter of 2014 net income of $9.8 million, or 58 cents per diluted share.
"Washington Trust's strong performance continued into the third quarter, as earnings reached an all-time quarterly high," stated Joseph J. MarcAurele, Washington Trust Chairman and CEO. "These results are truly a company-wide effort, as we had good growth along key business lines."
Selected highlights for the third quarter of 2014 included:
| |
| • | Returns on average equity and average assets were 12.15% and 1.25%, respectively. Comparable amounts for the second quarter of 2014 were 11.52% and 1.22%, respectively. |
| |
| • | Total loans at September 30, 2014 were $2.67 billion, up by a solid $92.9 million, or 4%, from June 30, 2014. |
| |
| • | Deposit growth was strong in the third quarter, with an increase of $152.8 million, or 6%, from June 30, 2014. Total deposits reached $2.74 billion at September 30, 2014. |
| |
| • | In September, we declared a quarterly dividend of 32 cents per share, representing a 3 cent increase over the dividend paid last quarter and our third dividend increase in the past year. |
Net Interest Income
Net interest income totaled $24.9 million for the third quarter of 2014, up by 2% from $24.5 million for the second quarter of 2014. The net interest margin was 3.21% for the third quarter of 2014, compared to 3.35% for the second quarter of 2014. Significant linked quarter changes included:
| |
| • | Average interest-earning assets increased by $146.2 million, reflecting growth in average loan balances. The yield on interest-earning assets declined by 14 basis points from the previous quarter, due to the combined effect of lower rates on loan originations and purchased securities and runoff of higher yielding loan and security balances. |
| |
| • | Average interest-bearing liabilities increased by $118.0 million, with growth in average wholesale funding balances and average interest-bearing deposits. The cost of funds declined by 1 basis point from the previous quarter. |
Washington Trust
Page 2, October 20, 2014
Noninterest Income
Noninterest income totaled $13.1 million for the third quarter of 2014, up by 2% from $12.8 million for the second quarter of 2014. Included in noninterest income were the following:
| |
| • | Wealth management revenues totaled $8.4 million for the third quarter of 2014, down by $156 thousand, or 2%, with a $324 thousand decline in transaction-based revenues, partially offset by a $168 thousand increase in asset-based revenues. The decline in transaction-based revenues was primarily attributable to a decrease in tax preparation fees, which are typically concentrated in the second quarter. |
| |
| • | Net gains on loan sales and commissions on loans originated for others totaled $1.7 million for the third quarter of 2014, up by $35 thousand, or 2%. Residential mortgage loans sold to the secondary market were $80.1 million in the third quarter, up by $3.1 million from the second quarter. |
| |
| • | Net gains on interest rate swap contracts amounted to $339 thousand for the third quarter of 2014, up by $376 thousand from the previous quarter, due to an increase in customer-related interest rate swap transactions. |
Noninterest Expenses
Noninterest expenses totaled $22.0 million for the third quarter of 2014, down by 2% from $22.4 million for the second quarter of 2014. Included in noninterest expenses were the following:
| |
| • | Salaries and employee benefit costs totaled $14.5 million for the third quarter of 2014, down by $255 thousand, or 2%, from the previous quarter, largely due to lower payroll tax expense. |
| |
| • | Advertising and promotion costs amounted to $368 thousand for the third quarter of 2014, down by $172 thousand, or 32%, as a result of seasonal promotion efforts that occurred in the second quarter. |
Income tax expense amounted to $4.9 million for the third quarter of 2014, up by $291 thousand, or 6%, from $4.6 million for the second quarter of 2014. The effective tax rate for the third quarter of 2014 was 31.6%, compared to 31.9% for the second quarter of 2014. Based on current federal and applicable state income tax statutes, the Corporation currently expects the full-year effective tax rate to be approximately 31.8% for 2014.
Asset Quality
Total nonaccrual loans amounted to $17.0 million, or 0.63% of total loans, at September 30, 2014, up from $12.5 million, or 0.49%, at June 30, 2014. The increase in nonaccrual loans during the third quarter was principally due to the classification into nonaccrual status of one commercial real estate loan with a carrying value of $4.9 million. Total past due loans amounted to $19.9 million, or 0.75% of total loans, at September 30, 2014, down from $21.1 million, or 0.82% of total loans, at June 30, 2014. Loans classified as troubled debt restructurings amounted to $18.3 million at September 30, 2014, down from $26.5 million at the end of the previous quarter, reflecting the payoff of an $8.0 million commercial real estate loan.
The loan loss provision charged to earnings in the third quarter of 2014 totaled $600 thousand, up from $450 thousand in the second quarter of 2014. Net charge-offs amounted to $101 thousand in the third quarter of 2014, compared to $224 thousand in the second quarter of 2014. The allowance for loan losses was $27.8 million, or 1.04% of total loans, at September 30, 2014, compared to $27.3 million, or 1.06% of total loans, at June 30, 2014.
Washington Trust
Page 3, October 20, 2014
Loans
Total loans amounted to $2.67 billion at September 30, 2014, up by $92.9 million, or 4%, from the balance at June 30, 2014. This increase was comprised of the following:
| |
| • | The residential real estate loan portfolio grew by $68.9 million, or 8%. |
| |
| • | Total commercial loans increased by $24.2 million, or 2%, with growth in both commercial real estate and commercial and industrial loans. |
| |
| • | Consumer loans declined slightly by $221 thousand, or 0.1%. |
Investment Securities
The securities portfolio amounted to $402.6 million, or 12% of total assets, at September 30, 2014, up from $355.4 million, or 11%, at June 30, 2014. The net increase of $47.2 million included purchases of $74.1 million of debt obligations and mortgage-backed securities issued by U.S government-sponsored enterprises. The purchases were offset, in part, by principal payments received on mortgage-backed securities, maturities and calls of debt obligations of U.S. sponsored enterprises and state and political subdivisions.
Deposits and Borrowings
Deposits totaled $2.74 billion at September 30, 2014, up by $152.8 million, or 6%, from the balance at June 30, 2014. This increase was comprised of the following:
| |
| • | Demand deposits increased by $65.2 million, or 16%, while NOW account balances decreased slightly by $669 thousand, or 0.2%. |
| |
| • | Money market and savings account balances increased by $59.7 million, or 6%. |
| |
| • | Time deposits increased by $28.6 million, or 4%. |
FHLBB advances amounted to $261.7 million at September 30, 2014, down by $60.4 million from June 30, 2014, primarily due to deposit inflows.
Capital Management
Capital levels continued to exceed the regulatory minimum levels to be considered well capitalized, with a total risk-based capital ratio of 13.26% at September 30, 2014, compared to 13.24% at June 30, 2014. Total shareholder's equity was $348.6 million at September 30, 2014, up by $5.1 million from June 30, 2014.
Dividends Declared
The Board of Directors declared a quarterly dividend of 32 cents per share for the quarter ended September 30, 2014, a 3 cent increase over the dividend paid in the previous quarter. The dividend was paid on October 15, 2014 to shareholders of record on October 1, 2014.
Washington Trust
Page 4, October 20, 2014
Conference Call
Washington Trust will host a conference call to discuss third quarter results, business highlights and outlook on Tuesday, October 21, 2014 at 8:30 a.m. (Eastern Time). Individuals may dial in to the call at 1-877-407-0784. An audio replay of the call will be available, shortly after the conclusion of the call, by dialing 1-877-870-5176 and entering the Replay PIN Number 13591326; the audio replay will be available through October 31, 2014. Also, a webcast of the call will be posted in the Investor Relations section of Washington Trust's web site, www.washtrustbancorp.com, and will be available through December 31, 2014.
Background
Washington Trust Bancorp, Inc. is the parent of The Washington Trust Company, a state-chartered bank headquartered in Westerly, Rhode Island. Founded in 1800, Washington Trust is the oldest community bank in the nation and is the largest independent bank headquartered in Rhode Island. Washington Trust offers a full range of financial services, including commercial banking, small business banking, personal banking, and wealth management and trust services through its offices located in Rhode Island, Connecticut and Massachusetts. The Corporation’s common stock trades on NASDAQ OMX® under the symbol WASH. Investor information is available on the Corporation’s web site: www.washtrustbancorp.com.
Forward-Looking Statements
This press release contains statements that are “forward-looking statements”. We may also make written or oral forward-looking statements in other documents we file with the SEC, in press releases and other written materials, and in oral statements made by our officers, directors or employees. You can identify forward-looking statements by the use of the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “assume,” “outlook,” “will,” “should,” and other expressions that predict or indicate future events and trends and which do not relate to historical matters. You should not rely on forward-looking statements, because they involve known and unknown risks, uncertainties and other factors, some of which are beyond the control of Washington Trust. These risks, uncertainties and other factors may cause the actual results, performance or achievements of Washington Trust to be materially different from the anticipated future results, performance or achievements expressed or implied by the forward-looking statements.
Some of the factors that might cause these differences include the following: continued weakness in national, regional or local economies; reductions in net interest income resulting from a sustained low interest rate environment as well as changes in the balance and mix of loans and deposits; reductions in the market value of wealth management assets under administration; changes in the value of securities and other assets; reductions in loan demand; changes in loan collectibility, default and charge-off rates; changes in the size and nature of 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, as filed with the SEC and as updated by our Quarterly Reports on Form 10-Q and other SEC filings, 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. These forward-looking statements were based on information, plans and estimates at the date of this press release, and we assume no obligation to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes.
Supplemental Information - Explanation of Non-GAAP Financial Measures
In addition to results presented in accordance with generally accepted accounting principles (“GAAP”), this press release contains certain non-GAAP financial measures. Washington Trust's management believes that the supplemental non-GAAP information, which consists of measurements and ratios based on tangible equity and tangible assets, is utilized by regulators and market analysts to evaluate a company's financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.
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| | | | | | | | |
| Washington Trust Bancorp, Inc. and Subsidiaries |
CONSOLIDATED BALANCE SHEETS (unaudited) |
| (Dollars in thousands, except par value) | | Sep 30,
2014 | | Dec 31,
2013 |
| Assets: | | | | |
| Cash and due from banks | |
| $86,132 |
| |
| $81,939 |
|
| Short-term investments | | 3,869 |
| | 3,378 |
|
| Mortgage loans held for sale, at fair value | | 35,473 |
| | 11,636 |
|
| Securities: | | | | |
| Available for sale, at fair value | | 376,073 |
| | 392,903 |
|
| Held to maturity, at amortized cost (fair value $27,074 in 2014 and $29,865 in 2013) | | 26,480 |
| | 29,905 |
|
| Total securities | | 402,553 |
| | 422,808 |
|
| Federal Home Loan Bank stock, at cost | | 37,730 |
| | 37,730 |
|
| Loans: | | | | |
| Commercial | | 1,390,373 |
| | 1,363,335 |
|
| Residential real estate | | 945,580 |
| | 772,674 |
|
| Consumer | | 338,094 |
| | 326,875 |
|
| Total loans | | 2,674,047 |
| | 2,462,884 |
|
| Less allowance for loan losses | | 27,768 |
| | 27,886 |
|
| Net loans | | 2,646,279 |
| | 2,434,998 |
|
| Premises and equipment, net | | 26,367 |
| | 25,402 |
|
| Investment in bank-owned life insurance | | 63,026 |
| | 56,673 |
|
| Goodwill | | 58,114 |
| | 58,114 |
|
| Identifiable intangible assets, net | | 5,004 |
| | 5,493 |
|
| Other assets | | 51,335 |
| | 50,696 |
|
| Total assets | |
| $3,415,882 |
| |
| $3,188,867 |
|
| Liabilities: | | | | |
| Deposits: | | | | |
| Demand deposits | |
| $476,808 |
| |
| $440,785 |
|
| NOW accounts | | 313,391 |
| | 309,771 |
|
| Money market accounts | | 833,318 |
| | 666,646 |
|
| Savings accounts | | 290,561 |
| | 297,357 |
|
| Time deposits | | 824,810 |
| | 790,762 |
|
| Total deposits | | 2,738,888 |
| | 2,505,321 |
|
| Federal Home Loan Bank advances | | 261,685 |
| | 288,082 |
|
| Junior subordinated debentures | | 22,681 |
| | 22,681 |
|
| Other liabilities | | 44,066 |
| | 43,137 |
|
| Total liabilities | | 3,067,320 |
| | 2,859,221 |
|
| Shareholders’ Equity: | | | | |
| Common stock of $.0625 par value; authorized 30,000,000 shares; issued and outstanding 16,721,172 shares in 2014 and 16,613,561 shares in 2013 | | 1,045 |
| | 1,038 |
|
| Paid-in capital | | 100,044 |
| | 97,566 |
|
| Retained earnings | | 247,052 |
| | 232,595 |
|
| Accumulated other comprehensive income (loss) | | 421 |
| | (1,553 | ) |
| Total shareholders’ equity | | 348,562 |
| | 329,646 |
|
| Total liabilities and shareholders’ equity | |
| $3,415,882 |
| |
| $3,188,867 |
|
|
| | | | | | | | | | | | | | | | |
| Washington Trust Bancorp, Inc. and Subsidiaries |
CONSOLIDATED STATEMENTS OF INCOME (unaudited) |
| | | | |
| (Dollars and shares in thousands, except per share amounts) | Three Months | | Nine Months |
| Periods ended September 30, | 2014 | | 2013 | | 2014 | | 2013 |
| Interest income: | | | | | | | |
| Interest and fees on loans | |
| $27,239 |
| |
| $26,096 |
| |
| $78,997 |
| |
| $76,832 |
|
| Interest on securities: | Taxable | 2,397 |
| | 2,582 |
| | 8,038 |
| | 8,003 |
|
| | Nontaxable | 519 |
| | 629 |
| | 1,658 |
| | 1,935 |
|
| Dividends on Federal Home Loan Bank stock | 140 |
| | 36 |
| | 420 |
| | 113 |
|
| Other interest income | 36 |
| | 47 |
| | 99 |
| | 99 |
|
| Total interest and dividend income | 30,331 |
| | 29,390 |
| | 89,212 |
| | 86,982 |
|
| Interest expense: |
|
| |
|
| |
|
| |
|
|
| Deposits | 3,317 |
| | 3,064 |
| | 9,406 |
| | 9,354 |
|
| Federal Home Loan Bank advances | 1,832 |
| | 2,693 |
| | 5,831 |
| | 8,109 |
|
| Junior subordinated debentures | 241 |
| | 241 |
| | 723 |
| | 1,243 |
|
| Other interest expense | 3 |
| | 4 |
| | 10 |
| | 12 |
|
| Total interest expense | 5,393 |
| | 6,002 |
| | 15,970 |
| | 18,718 |
|
| Net interest income | 24,938 |
| | 23,388 |
| | 73,242 |
| | 68,264 |
|
| Provision for loan losses | 600 |
| | 700 |
| | 1,350 |
| | 2,000 |
|
| Net interest income after provision for loan losses | 24,338 |
| | 22,688 |
| | 71,892 |
| | 66,264 |
|
| Noninterest income: |
|
| |
|
| |
|
| |
|
|
| Wealth management revenues | 8,374 |
| | 7,629 |
| | 24,969 |
| | 23,015 |
|
| Merchant processing fees | — |
| | 3,359 |
| | 1,291 |
| | 7,949 |
|
| Net gains on loan sales and commissions on loans originated for others | 1,742 |
| | 3,883 |
| | 4,688 |
| | 11,534 |
|
| Service charges on deposit accounts | 881 |
| | 855 |
| | 2,459 |
| | 2,436 |
|
| Card interchange fees | 804 |
| | 731 |
| | 2,264 |
| | 2,013 |
|
| Income from bank-owned life insurance | 468 |
| | 464 |
| | 1,354 |
| | 1,392 |
|
| Net gains on interest rate swap contracts | 339 |
| | 54 |
| | 562 |
| | 225 |
|
| Equity in earnings (losses) of unconsolidated subsidiaries | (63 | ) | | (47 | ) | | (213 | ) | | (65 | ) |
| Gain on sale of business line | — |
| | — |
| | 6,265 |
| | — |
|
| Other income | 580 |
| | 472 |
| | 1,670 |
| | 1,233 |
|
| Noninterest income, excluding other-than-temporary impairment losses | 13,125 |
| | 17,400 |
| | 45,309 |
| | 49,732 |
|
| Total other-than-temporary impairment losses on securities | — |
| | — |
| | — |
| | (613 | ) |
| Portion of loss recognized in other comprehensive income (before tax) | — |
| | — |
| | — |
| | (2,159 | ) |
| Net impairment losses recognized in earnings | — |
| | — |
| | — |
| | (2,772 | ) |
| Total noninterest income | 13,125 |
| | 17,400 |
| | 45,309 |
| | 46,960 |
|
| Noninterest expense: |
|
| |
|
| |
|
| |
|
|
| Salaries and employee benefits | 14,516 |
| | 14,640 |
| | 43,845 |
| | 45,624 |
|
| Net occupancy | 1,557 |
| | 1,404 |
| | 4,672 |
| | 4,282 |
|
| Equipment | 1,211 |
| | 1,222 |
| | 3,682 |
| | 3,658 |
|
| Merchant processing costs | — |
| | 2,862 |
| | 1,050 |
| | 6,746 |
|
| Outsourced services | 1,138 |
| | 878 |
| | 3,197 |
| | 2,590 |
|
| Legal, audit and professional fees | 494 |
| | 529 |
| | 1,710 |
| | 1,691 |
|
| FDIC deposit insurance costs | 442 |
| | 448 |
| | 1,295 |
| | 1,330 |
|
| Advertising and promotion | 368 |
| | 312 |
| | 1,140 |
| | 1,143 |
|
| Amortization of intangibles | 161 |
| | 170 |
| | 489 |
| | 516 |
|
| Foreclosed property costs | 27 |
| | 38 |
| | 48 |
| | 222 |
|
| Debt prepayment penalties | — |
| | 1,125 |
| | 6,294 |
| | 1,125 |
|
| Other expenses | 2,133 |
| | 1,920 |
| | 6,365 |
| | 5,810 |
|
| Total noninterest expense | 22,047 |
| | 25,548 |
| | 73,787 |
| | 74,737 |
|
| Income before income taxes | 15,416 |
| | 14,540 |
| | 43,414 |
| | 38,487 |
|
| Income tax expense | 4,878 |
| | 4,580 |
| | 13,781 |
| | 12,123 |
|
| Net income |
| $10,538 |
| |
| $9,960 |
| |
| $29,633 |
| |
| $26,364 |
|
| | | | | | | | |
| Weighted average common shares outstanding - basic | 16,714 |
| | 16,563 |
| | 16,673 |
| | 16,473 |
|
| Weighted average common shares outstanding - diluted | 16,855 |
| | 16,696 |
| | 16,832 |
| | 16,600 |
|
| Per share information: | Basic earnings per common share |
| $0.63 |
| |
| $0.60 |
| |
| $1.77 |
| |
| $1.59 |
|
| | Diluted earnings per common share |
| $0.62 |
| |
| $0.59 |
| |
| $1.75 |
| |
| $1.58 |
|
| | Cash dividends declared per share |
| $0.32 |
| |
| $0.26 |
| |
| $0.90 |
| |
| $0.76 |
|
|
| | | | | | | | | | | | | | | | | | | |
| Washington Trust Bancorp, Inc. and Subsidiaries |
SELECTED FINANCIAL HIGHLIGHTS (unaudited) |
| | At or for the Quarters Ended |
| (Dollars and shares in thousands, except per share amounts) | Sep 30,
2014 | | Jun 30,
2014 | | Mar 31,
2014 | | Dec 31,
2013 | | Sep 30,
2013 |
| Financial Data: | | | | | | | | | |
| Total assets |
| $3,415,882 |
| |
| $3,317,022 |
| |
| $3,194,146 |
| |
| $3,188,867 |
| |
| $3,131,958 |
|
| Total loans | 2,674,047 |
| | 2,581,124 |
| | 2,478,603 |
| | 2,462,884 |
| | 2,353,766 |
|
| Total securities | 402,553 |
| | 355,392 |
| | 389,889 |
| | 422,808 |
| | 419,349 |
|
| Total deposits | 2,738,888 |
| | 2,586,097 |
| | 2,591,654 |
| | 2,505,321 |
| | 2,454,831 |
|
| Total shareholders' equity | 348,562 |
| | 343,450 |
| | 335,858 |
| | 329,646 |
| | 323,585 |
|
| Net interest income | 24,938 |
| | 24,468 |
| | 23,836 |
| | 23,521 |
| | 23,388 |
|
| Provision for loan losses | 600 |
| | 450 |
| | 300 |
| | 400 |
| | 700 |
|
| Noninterest income, excluding OTTI losses | 13,125 |
| | 12,814 |
| | 19,370 |
| | 15,837 |
| | 17,400 |
|
| Net OTTI losses recognized in earnings | — |
| | — |
| | — |
| | (717 | ) | | — |
|
| Noninterest expense | 22,047 |
| | 22,448 |
| | 29,292 |
| | 24,048 |
| | 25,548 |
|
| Income tax expense | 4,878 |
| | 4,587 |
| | 4,316 |
| | 4,404 |
| | 4,580 |
|
| Net income | 10,538 |
| | 9,797 |
| | 9,298 |
| | 9,789 |
| | 9,960 |
|
| | | | | | | | | | |
| Share Data: | | | | | | | | | |
| Basic earnings per common share |
| $0.63 |
| |
| $0.59 |
| |
| $0.56 |
| |
| $0.59 |
| |
| $0.60 |
|
| Diluted earnings per common share |
| $0.62 |
| |
| $0.58 |
| |
| $0.55 |
| |
| $0.58 |
| |
| $0.59 |
|
| Dividends declared per share |
| $0.32 |
| |
| $0.29 |
| |
| $0.29 |
| |
| $0.27 |
| |
| $0.26 |
|
| Book value per share |
| $20.85 |
| |
| $20.56 |
| |
| $20.19 |
| |
| $19.84 |
| |
| $19.51 |
|
Tangible book value per share - Non-GAAP (1) |
| $17.07 |
| |
| $16.77 |
| |
| $16.38 |
| |
| $16.01 |
| |
| $15.66 |
|
| Market value per share |
| $32.99 |
| |
| $36.77 |
| |
| $37.47 |
| |
| $37.22 |
| |
| $31.43 |
|
| Shares outstanding at end of period | 16,721 |
| | 16,705 |
| | 16,635 |
| | 16,614 |
| | 16,589 |
|
| Weighted average common shares outstanding - basic | 16,714 |
| | 16,678 |
| | 16,626 |
| | 16,602 |
| | 16,563 |
|
| Weighted average common shares outstanding - diluted | 16,855 |
| | 16,831 |
| | 16,800 |
| | 16,770 |
| | 16,696 |
|
| | | | | | | | | | |
| Key Ratios: | | | | | | | | | |
| Return on average assets | 1.25 | % | | 1.22 | % | | 1.17 | % | | 1.24 | % | | 1.29 | % |
Return on average tangible assets - Non-GAAP (1) | 1.27 | % | | 1.24 | % | | 1.20 | % | | 1.26 | % | | 1.31 | % |
| Return on average equity | 12.15 | % | | 11.52 | % | | 11.10 | % | | 11.98 | % | | 12.82 | % |
Return on average tangible equity - Non-GAAP (1) | 14.86 | % | | 14.15 | % | | 13.70 | % | | 14.80 | % | | 16.13 | % |
| Tier 1 risk-based capital | 12.16% (i) |
| | 12.13 | % | | 12.42 | % | | 12.12 | % | | 12.23 | % |
| Total risk-based capital | 13.26% (i) |
| | 13.24 | % | | 13.56 | % | | 13.29 | % | | 13.44 | % |
| Tier 1 leverage ratio | 9.35% (i) |
| | 9.62 | % | | 9.56 | % | | 9.41 | % | | 9.41 | % |
| Equity to assets | 10.20 | % | | 10.35 | % | | 10.51 | % | | 10.34 | % | | 10.33 | % |
Tangible equity to tangible assets - Non-GAAP (1) | 8.51 | % | | 8.61 | % | | 8.70 | % | | 8.51 | % | | 8.47 | % |
(i) - estimated | | | | | | | | | |
| | | | | | | | | | |
| Wealth Management Revenues: | | | | | | | | | |
| Trust and investment management fees |
| $6,982 |
| |
| $6,828 |
| |
| $6,685 |
| |
| $6,637 |
| |
| $6,291 |
|
| Mutual fund fees | 1,100 |
| | 1,086 |
| | 1,081 |
| | 1,104 |
| | 1,075 |
|
| Asset-based revenues | 8,082 |
| | 7,914 |
| | 7,766 |
| | 7,741 |
| | 7,366 |
|
| Transaction-based revenues | 292 |
| | 616 |
| | 299 |
| | 1,069 |
| | 263 |
|
| Total wealth management revenues |
| $8,374 |
| |
| $8,530 |
| |
| $8,065 |
| |
| $8,810 |
| |
| $7,629 |
|
| | | | | | | | | | |
| Wealth Management Assets Under Administration: | | | | | | | | | |
| Balance at beginning of period |
| $5,010,588 |
| |
| $4,806,381 |
| |
| $4,781,958 |
| |
| $4,595,594 |
| |
| $4,433,574 |
|
| Net investment appreciation (depreciation) & income | (29,199 | ) | | 131,269 |
| | 44,335 |
| | 248,727 |
| | 190,931 |
|
| Net client cash flows | 2,075 |
| | 72,938 |
| | (19,912 | ) | | (62,363 | ) | | (28,911 | ) |
| Balance at end of period |
| $4,983,464 |
| |
| $5,010,588 |
| |
| $4,806,381 |
| |
| $4,781,958 |
| |
| $4,595,594 |
|
| |
| (1) | See the section labeled “Supplemental Information - Non-GAAP Financial Measures” at the end of this document. |
|
| | | | | | | |
| Washington Trust Bancorp, Inc. and Subsidiaries |
SELECTED FINANCIAL HIGHLIGHTS (unaudited) |
| | Nine Months Ended |
| (Dollars and shares in thousands, except per share amounts) | Sep 30,
2014 | | Sep 30,
2013 |
| Key Ratios: | | | |
| Return on average assets | 1.21 | % | | 1.15 | % |
| Return on average tangible assets - Non-GAAP (1) | 1.24 | % | | 1.18 | % |
| Return on average equity | 11.60 | % | | 11.54 | % |
| Return on average tangible equity - Non-GAAP (1) | 14.24 | % | | 14.61 | % |
| | | | |
| Allowance for Loan Losses: | | | |
| Balance at beginning of period |
| $27,886 |
| |
| $30,873 |
|
| Provision charged to earnings | 1,350 |
| | 2,000 |
|
| Charge-offs | (1,638 | ) | | (5,319 | ) |
| Recoveries | 170 |
| | 454 |
|
| Balance at end of period |
| $27,768 |
| |
| $28,008 |
|
| | | | |
| Net Loan Charge-Offs (Recoveries): | | | |
| Commercial mortgages |
| $958 |
| |
| $4,524 |
|
| Other commercial | 328 |
| | 132 |
|
| Residential real estate mortgages | 36 |
| | 45 |
|
| Consumer | 146 |
| | 164 |
|
| Total |
| $1,468 |
| |
| $4,865 |
|
| | | | |
| Net charge-offs to average loans (annualized) | 0.08 | % | | 0.27 | % |
| | | | |
| Wealth Management Revenues: | | | |
| Trust and investment management fees |
| $20,495 |
| |
| $18,587 |
|
| Mutual fund fees | 3,267 |
| | 3,174 |
|
| Asset-based revenues | 23,762 |
| | 21,761 |
|
| Transaction-based revenues | 1,207 |
| | 1,254 |
|
| Total wealth management revenues |
| $24,969 |
| |
| $23,015 |
|
| | | | |
Wealth Management Assets Under Administration: | | | |
| Balance at beginning of period |
| $4,781,958 |
| |
| $4,199,640 |
|
| Net investment appreciation & income | 146,405 |
| | 383,954 |
|
| Net client cash flows | 55,101 |
| | 12,000 |
|
| Balance at end of period |
| $4,983,464 |
| |
| $4,595,594 |
|
| |
| (1) | See the section labeled “Supplemental Information - Non-GAAP Financial Measures” at the end of this document. |
|
| | | | | | | | | | | | | | |
| Washington Trust Bancorp, Inc. and Subsidiaries |
SELECTED FINANCIAL HIGHLIGHTS (unaudited) |
| | For the Quarters Ended |
| | Sep 30,
2014 | | Jun 30,
2014 | | Mar 31,
2014 | | Dec 31,
2013 | | Sep 30,
2013 |
| Average Yield / Rate (taxable equivalent basis): | | | | | | | | | |
| Assets: | | | | | | | | | |
| Commercial loans | 4.20 | % | | 4.35 | % | | 4.43 | % | | 4.52 | % | | 4.67 | % |
| Residential real estate loans, including mortgage loans held for sale | 4.06 | % | | 4.12 | % | | 4.15 | % | | 4.09 | % | | 4.06 | % |
| Consumer loans | 3.83 | % | | 3.81 | % | | 3.83 | % | | 3.77 | % | | 3.78 | % |
| Total loans | 4.10 | % | | 4.20 | % | | 4.26 | % | | 4.28 | % | | 4.35 | % |
| Cash, federal funds sold and other short-term investments | 0.19 | % | | 0.19 | % | | 0.23 | % | | 0.22 | % | | 0.21 | % |
| FHLBB stock | 1.47 | % | | 1.47 | % | | 1.53 | % | | 0.37 | % | | 0.38 | % |
| Taxable debt securities | 2.94 | % | | 3.36 | % | | 3.47 | % | | 3.40 | % | | 3.44 | % |
| Nontaxable debt securities | 5.86 | % | | 5.92 | % | | 5.98 | % | | 5.88 | % | | 5.87 | % |
| Total securities | 3.36 | % | | 3.74 | % | | 3.84 | % | | 3.78 | % | | 3.88 | % |
| Total interest-earning assets | 3.89 | % | | 4.03 | % | | 4.08 | % | | 4.02 | % | | 4.12 | % |
| Liabilities: | | | | | | | | | |
| Interest-bearing demand deposits | — | % | | — | % | | — | % | | — | % | | — | % |
| NOW accounts | 0.06 | % | | 0.06 | % | | 0.06 | % | | 0.06 | % | | 0.06 | % |
| Money market accounts | 0.41 | % | | 0.38 | % | | 0.36 | % | | 0.34 | % | | 0.31 | % |
| Savings accounts | 0.06 | % | | 0.06 | % | | 0.06 | % | | 0.06 | % | | 0.06 | % |
| Time deposits | 1.15 | % | | 1.14 | % | | 1.15 | % | | 1.19 | % | | 1.23 | % |
| FHLBB advances | 2.57 | % | | 3.20 | % | | 3.37 | % | | 3.49 | % | | 3.25 | % |
| Junior subordinated debentures | 4.22 | % | | 4.26 | % | | 4.31 | % | | 4.22 | % | | 4.22 | % |
| Other | 7.88 | % | | 9.90 | % | | 7.03 | % | | 2.52 | % | | 4.50 | % |
| Total interest-bearing liabilities | 0.84 | % | | 0.85 | % | | 0.93 | % | | 0.98 | % | | 1.01 | % |
| | | | | | | | | | |
| Interest rate spread (taxable equivalent basis) | 3.05 | % | | 3.18 | % | | 3.15 | % | | 3.04 | % | | 3.11 | % |
| Net interest margin (taxable equivalent basis) | 3.21 | % | | 3.35 | % | | 3.34 | % | | 3.24 | % | | 3.29 | % |
|
| | | | | | | | | | | | | | | | |
| | | At September 30, 2014 |
| | | Amortized | | Unrealized | | Unrealized | | Fair |
| (Dollars in thousands) | | Cost (1) | | Gains | | Losses | | Value |
| Securities Available for Sale: | | | | | | | | |
| Obligations of U.S. government-sponsored enterprises | |
| $31,008 |
| |
| $— |
| |
| ($89 | ) | |
| $30,919 |
|
| Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | | 248,369 |
| | 9,012 |
| | (160 | ) | | 257,221 |
|
| Obligations of states and political subdivisions | | 52,526 |
| | 1,991 |
| | — |
| | 54,517 |
|
| Individual name issuer trust preferred debt securities | | 30,743 |
| | — |
| | (3,546 | ) | | 27,197 |
|
| Corporate bonds | | 6,122 |
| | 104 |
| | (7 | ) | | 6,219 |
|
| Total securities available for sale | | 368,768 |
| | 11,107 |
| | (3,802 | ) | | 376,073 |
|
| Held to Maturity: | | | | | | | | |
| Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | | 26,480 |
| | 594 |
| | — |
| | 27,074 |
|
| Total securities held to maturity | | 26,480 |
| | 594 |
| | — |
| | 27,074 |
|
| Total securities | |
| $395,248 |
| |
| $11,701 |
| |
| ($3,802 | ) | |
| $403,147 |
|
| |
| (1) | Net of other-than-temporary impairment losses recognized in earnings. |
|
| | | | | | | | | | | | | | | | | | | | |
| Washington Trust Bancorp, Inc. and Subsidiaries |
SELECTED FINANCIAL HIGHLIGHTS (unaudited) |
| | Period End Balances At |
| (Dollars in thousands) | Sep 30,
2014 | | Jun 30,
2014 | | Mar 31,
2014 | | Dec 31,
2013 | | Sep 30,
2013 |
| Loans: | | | | | | | | | |
| Commercial: | Mortgages |
| $766,703 |
| |
| $772,772 |
| |
| $788,836 |
| |
| $796,249 |
| |
| $727,375 |
|
| | Construction & development | 58,750 |
| | 38,574 |
| | 24,696 |
| | 36,289 |
| | 51,951 |
|
| | Other | 564,920 |
| | 554,824 |
| | 523,751 |
| | 530,797 |
| | 518,566 |
|
| | Total commercial | 1,390,373 |
| | 1,366,170 |
| | 1,337,283 |
| | 1,363,335 |
| | 1,297,892 |
|
| Residential real estate: | Mortgages | 912,956 |
| | 846,187 |
| | 784,623 |
| | 749,163 |
| | 711,427 |
|
| | Homeowner construction | 32,624 |
| | 30,452 |
| | 25,770 |
| | 23,511 |
| | 20,265 |
|
| | Total residential real estate | 945,580 |
| | 876,639 |
| | 810,393 |
| | 772,674 |
| | 731,692 |
|
| Consumer: | Home equity lines | 240,567 |
| | 237,390 |
| | 233,728 |
| | 231,362 |
| | 227,063 |
|
| | Home equity loans | 46,455 |
| | 45,632 |
| | 41,991 |
| | 40,212 |
| | 41,158 |
|
| | Other | 51,072 |
| | 55,293 |
| | 55,208 |
| | 55,301 |
| | 55,961 |
|
| | Total consumer | 338,094 |
| | 338,315 |
| | 330,927 |
| | 326,875 |
| | 324,182 |
|
| | Total loans |
| $2,674,047 |
| |
| $2,581,124 |
| |
| $2,478,603 |
| |
| $2,462,884 |
| |
| $2,353,766 |
|
|
| | | | | | |
| | At September 30, 2014 |
| (Dollars in thousands) | Balance |
| | % of Total |
| Commercial Real Estate Loans by Property Location: | | | |
| Rhode Island, Connecticut, Massachusetts |
| $778,746 |
| | 94.4 | % |
| New York, New Jersey | 38,131 |
| | 4.6 | % |
| New Hampshire | 8,576 |
| | 1.0 | % |
| Total commercial real estate loans (1) |
| $825,453 |
| | 100.0 | % |
| |
| (1) | Commercial real estate loans consist of commercial mortgages and construction and development loans. Commercial mortgages are loans secured by income producing property. |
|
| | | | | | |
| | At September 30, 2014 |
| (Dollars in thousands) | Balance | | % of Total |
| Residential Mortgages by Property Location: | | | |
| Rhode Island, Connecticut, Massachusetts |
| $926,029 |
| | 98.1 | % |
| New Hampshire | 9,522 |
| | 1.0 | % |
| New York, Virginia, New Jersey, Maryland, Pennsylvania | 5,138 |
| | 0.5 | % |
| Ohio | 2,025 |
| | 0.2 | % |
| Washington, Oregon | 1,337 |
| | 0.1 | % |
| Georgia | 1,067 |
| | 0.1 | % |
| New Mexico | 462 |
| | — | % |
| Total residential mortgages |
| $945,580 |
| | 100.0 | % |
|
| | | | | | | | | | | | | | | | | | | | |
| | | Period End Balances At |
| (Dollars in thousands) | | Sep 30,
2014 | | Jun 30,
2014 | | Mar 31,
2014 | | Dec 31,
2013 | | Sep 30,
2013 |
| Deposits: | | | | | | | | | | |
| Demand deposits | |
| $476,808 |
| |
| $411,586 |
| |
| $445,570 |
| |
| $440,785 |
| |
| $420,075 |
|
| NOW accounts | | 313,391 |
| | 314,060 |
| | 311,461 |
| | 309,771 |
| | 301,250 |
|
| Money market accounts | | 833,318 |
| | 772,084 |
| | 704,434 |
| | 666,646 |
| | 623,631 |
|
| Savings accounts | | 290,561 |
| | 292,112 |
| | 293,322 |
| | 297,357 |
| | 292,765 |
|
| Time deposits | | 824,810 |
| | 796,255 |
| | 836,867 |
| | 790,762 |
| | 817,110 |
|
| Total deposits | |
| $2,738,888 |
| |
| $2,586,097 |
| |
| $2,591,654 |
| |
| $2,505,321 |
| |
| $2,454,831 |
|
| | | | | | | | | | | |
| Out-of-market brokered certificates of deposits included in time deposits | |
| $211,222 |
| |
| $171,216 |
| |
| $171,275 |
| |
| $98,009 |
| |
| $106,231 |
|
| In-market deposits, excluding out-of-market brokered certificates of deposit | |
| $2,527,666 |
| |
| $2,414,881 |
| |
| $2,420,379 |
| |
| $2,407,312 |
| |
| $2,348,600 |
|
|
| | | | | | | | | | | | | | | | | | | |
| Washington Trust Bancorp, Inc. and Subsidiaries |
SELECTED FINANCIAL HIGHLIGHTS (unaudited) |
| | Period End Balances At |
| (Dollars in thousands) | Sep 30,
2014 | | Jun 30,
2014 | | Mar 31,
2014 | | Dec 31,
2013 | | Sep 30,
2013 |
| Asset Quality Data: | | | | | | | | | |
| Nonperforming Assets: | | | | | | | | | |
| Commercial mortgages |
| $6,022 |
| |
| $2,290 |
| |
| $2,293 |
| |
| $7,492 |
| |
| $8,956 |
|
| Commercial construction and development | — |
| | — |
| | — |
| | — |
| | — |
|
| Other commercial | 1,326 |
| | 1,615 |
| | 1,198 |
| | 1,291 |
| | 1,248 |
|
| Residential real estate mortgages | 7,890 |
| | 7,417 |
| | 8,975 |
| | 8,315 |
| | 8,095 |
|
| Consumer | 1,727 |
| | 1,213 |
| | 1,108 |
| | 1,204 |
| | 1,204 |
|
| Total nonaccrual loans | 16,965 |
| | 12,535 |
| | 13,574 |
| | 18,302 |
| | 19,503 |
|
| Nonaccrual investment securities | — |
| | — |
| | — |
| | 547 |
| | 425 |
|
| Property acquired through foreclosure or repossession | 988 |
| | 1,309 |
| | 750 |
| | 932 |
| | 594 |
|
| Total nonperforming assets |
| $17,953 |
| |
| $13,844 |
| |
| $14,324 |
| |
| $19,781 |
| |
| $20,522 |
|
| | | | | | | | | | |
| Total past due loans to total loans | 0.75 | % | | 0.82 | % | | 0.73 | % | | 0.89 | % | | 1.02 | % |
| Nonperforming assets to total assets | 0.53 | % | | 0.42 | % | | 0.45 | % | | 0.62 | % | | 0.66 | % |
| Nonaccrual loans to total loans | 0.63 | % | | 0.49 | % | | 0.55 | % | | 0.74 | % | | 0.83 | % |
| Allowance for loan losses to nonaccrual loans | 163.68 | % | | 217.54 | % | | 199.23 | % | | 152.37 | % | | 143.61 | % |
| Allowance for loan losses to total loans | 1.04 | % | | 1.06 | % | | 1.09 | % | | 1.13 | % | | 1.19 | % |
| | | | | | | | | | |
| Troubled Debt Restructured Loans: | | | | | | | | | |
| Accruing troubled debt restructured loans: | | | | | | | | | |
| Commercial mortgages |
| $9,677 |
| |
| $22,603 |
| |
| $22,796 |
| |
| $22,800 |
| |
| $23,892 |
|
| Other commercial | 1,036 |
| | 969 |
| | 989 |
| | 1,265 |
| | 1,576 |
|
| Residential real estate mortgages | 1,258 |
| | 1,459 |
| | 1,467 |
| | 1,442 |
| | 870 |
|
| Consumer | 164 |
| | 167 |
| | 233 |
| | 236 |
| | 239 |
|
| Accruing troubled debt restructured loans | 12,135 |
| | 25,198 |
| | 25,485 |
| | 25,743 |
| | 26,577 |
|
| Nonaccrual troubled debt restructured loans: | | | | | | | | | |
| Commercial mortgages | 4,898 |
| | — |
| | — |
| | — |
| | — |
|
| Other commercial | 854 |
| | 872 |
| | 369 |
| | 542 |
| | 547 |
|
| Residential real estate mortgages | 441 |
| | 448 |
| | 447 |
| | — |
| | — |
|
| Consumer | — |
| | — |
| | 29 |
| | 38 |
| | 40 |
|
| Nonaccrual troubled debt restructured loans | 6,193 |
| | 1,320 |
| | 845 |
| | 580 |
| | 587 |
|
| Total troubled debt restructured loans |
| $18,328 |
| |
| $26,518 |
| |
| $26,330 |
| |
| $26,323 |
| |
| $27,164 |
|
|
| | | | | | | | | | | | | | | | | | | |
| Washington Trust Bancorp, Inc. and Subsidiaries |
SELECTED FINANCIAL HIGHLIGHTS (unaudited) |
| | Period End Balances At |
| (Dollars in thousands) | Sep 30,
2014 | | Jun 30,
2014 | | Mar 31,
2014 | | Dec 31,
2013 | | Sep 30,
2013 |
| Past Due Loans: | | | | | | | | | |
| Loans 30-59 Days Past Due: | | | | | | | | | |
| Commercial mortgages |
| $— |
| |
| $311 |
| |
| $— |
| |
| $— |
| |
| $— |
|
| Other commercial loans | 1,129 |
| | 1,785 |
| | 3,351 |
| | 276 |
| | 2,648 |
|
| Residential real estate mortgages | 2,582 |
| | 5,249 |
| | 2,232 |
| | 4,040 |
| | 2,624 |
|
| Consumer loans | 1,677 |
| | 1,889 |
| | 1,365 |
| | 1,322 |
| | 1,013 |
|
| Loans 30-59 days past due |
| $5,388 |
| |
| $9,234 |
| |
| $6,948 |
| |
| $5,638 |
| |
| $6,285 |
|
| | | | | | | | | | |
| Loans 60-89 Days Past Due: | | | | | | | | | |
| Commercial mortgages |
| $— |
| |
| $1,583 |
| |
| $15 |
| |
| $— |
| |
| $730 |
|
| Other commercial loans | 314 |
| | 773 |
| | 127 |
| | 302 |
| | 8 |
|
| Residential real estate mortgages | 2,001 |
| | 855 |
| | 1,265 |
| | 1,285 |
| | 1,960 |
|
| Consumer loans | 356 |
| | 1,102 |
| | 658 |
| | 166 |
| | 328 |
|
| Loans 60-89 days past due |
| $2,671 |
| |
| $4,313 |
| |
| $2,065 |
| |
| $1,753 |
| |
| $3,026 |
|
| | | | | | | | | | |
| Loans 90 Days or more Past Due: | | | | | | | | | |
| Commercial mortgages |
| $5,995 |
| |
| $2,250 |
| |
| $2,238 |
| |
| $7,492 |
| |
| $8,226 |
|
| Other commercial loans | 970 |
| | 417 |
| | 428 |
| | 731 |
| | 929 |
|
| Residential real estate mortgages | 3,922 |
| | 4,335 |
| | 5,634 |
| | 5,633 |
| | 4,843 |
|
| Consumer loans | 989 |
| | 512 |
| | 701 |
| | 656 |
| | 693 |
|
| Loans 90 days or more past due |
| $11,876 |
| |
| $7,514 |
| |
| $9,001 |
| |
| $14,512 |
| |
| $14,691 |
|
| | | | | | | | | | |
| Total Past Due Loans: | | | | | | | | | |
| Commercial mortgages |
| $5,995 |
| |
| $4,144 |
| |
| $2,253 |
| |
| $7,492 |
| |
| $8,956 |
|
| Other commercial loans | 2,413 |
| | 2,975 |
| | 3,906 |
| | 1,309 |
| | 3,585 |
|
| Residential real estate mortgages | 8,505 |
| | 10,439 |
| | 9,131 |
| | 10,958 |
| | 9,427 |
|
| Consumer loans | 3,022 |
| | 3,503 |
| | 2,724 |
| | 2,144 |
| | 2,034 |
|
| Total past due loans |
| $19,935 |
| |
| $21,061 |
| |
| $18,014 |
| |
| $21,903 |
| |
| $24,002 |
|
| | | | | | | | | | |
| Accruing loans 90 days or more past due |
| $— |
| |
| $— |
| |
| $— |
| |
| $— |
| |
| $— |
|
| Nonaccrual loans included in past due loans |
| $14,364 |
| |
| $10,432 |
| |
| $11,487 |
| |
| $15,591 |
| |
| $17,275 |
|
|
| | | | | | | | | | | | | | | | | | | |
| | For the Quarters Ended |
| (Dollars in thousands) | Sep 30,
2014 | | Jun 30,
2014 | | Mar 31,
2014 | | Dec 31,
2013 | | Sep 30,
2013 |
| Allowance for Loan Losses: | | | | | | | | | |
| Balance at beginning of period |
| $27,269 |
| |
| $27,043 |
| |
| $27,886 |
| |
| $28,008 |
| |
| $27,884 |
|
| Provision charged to earnings | 600 |
| | 450 |
| | 300 |
| | 400 |
| | 700 |
|
| Charge-offs | (148 | ) | | (267 | ) | | (1,223 | ) | | (703 | ) | | (770 | ) |
| Recoveries | 47 |
| | 43 |
| | 80 |
| | 181 |
| | 194 |
|
| Balance at end of period |
| $27,768 |
| |
| $27,269 |
| |
| $27,043 |
| |
| $27,886 |
| |
| $28,008 |
|
| | | | | | | | | | |
| Net Loan Charge-Offs (Recoveries): | | | | | | | | | |
| Commercial mortgages |
| ($7 | ) | |
| $26 |
| |
| $939 |
| |
| $309 |
| |
| $602 |
|
| Other commercial | 63 |
| | 95 |
| | 170 |
| | 73 |
| | (2 | ) |
| Residential real estate mortgages | (1 | ) | | 30 |
| | 7 |
| | 80 |
| | — |
|
| Consumer | 46 |
| | 73 |
| | 27 |
| | 60 |
| | (24 | ) |
| Total |
| $101 |
| |
| $224 |
| |
| $1,143 |
| |
| $522 |
| |
| $576 |
|
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 adjusted for applicable state income taxes, net of the related federal tax benefit. 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 |
| | | September 30, 2014 | | June 30, 2014 | | September 30, 2013 |
| | | Average Balance | Interest | Yield/ Rate | | Average Balance | Interest | Yield/ Rate | | Average Balance | Interest | Yield/ Rate |
| (Dollars in thousands) | |
| Assets: | | | | | | | | | | | | |
| Commercial loans | |
| $1,380,229 |
|
| $14,624 |
| 4.20 | % | |
| $1,339,310 |
|
| $14,509 |
| 4.35 | % | |
| $1,297,705 |
|
| $15,274 |
| 4.67 | % |
| Residential real estate loans, including loans held for sale | | 946,738 |
| 9,685 |
| 4.06 | % | | 856,955 |
| 8,811 |
| 4.12 | % | | 780,323 |
| 7,991 |
| 4.06 | % |
| Consumer loans | | 337,598 |
| 3,259 |
| 3.83 | % | | 333,881 |
| 3,171 |
| 3.81 | % | | 323,398 |
| 3,083 |
| 3.78 | % |
| Total loans | | 2,664,565 |
| 27,568 |
| 4.10 | % | | 2,530,146 |
| 26,491 |
| 4.20 | % | | 2,401,426 |
| 26,348 |
| 4.35 | % |
| Cash, federal funds sold and short-term investments | | 74,569 |
| 36 |
| 0.19 | % | | 59,507 |
| 28 |
| 0.19 | % | | 87,048 |
| 47 |
| 0.21 | % |
| FHLBB stock | | 37,730 |
| 140 |
| 1.47 | % | | 37,730 |
| 138 |
| 1.47 | % | | 37,730 |
| 36 |
| 0.38 | % |
| Taxable debt securities | | 323,140 |
| 2,397 |
| 2.94 | % | | 322,418 |
| 2,699 |
| 3.36 | % | | 297,532 |
| 2,582 |
| 3.44 | % |
| Nontaxable debt securities | | 53,374 |
| 789 |
| 5.86 | % | | 57,422 |
| 847 |
| 5.92 | % | | 64,836 |
| 960 |
| 5.87 | % |
| Total securities | | 376,514 |
| 3,186 |
| 3.36 | % | | 379,840 |
| 3,546 |
| 3.74 | % | | 362,368 |
| 3,542 |
| 3.88 | % |
| Total interest-earning assets | | 3,153,378 |
| 30,930 |
| 3.89 | % | | 3,007,223 |
| 30,203 |
| 4.03 | % | | 2,888,572 |
| 29,973 |
| 4.12 | % |
| Noninterest-earning assets | | 216,945 |
| | | | 207,426 |
| | | | 209,656 |
| | |
| Total assets | |
| $3,370,323 |
| | | |
| $3,214,649 |
| | | |
| $3,098,228 |
| | |
| Liabilities and Shareholders' Equity: | | | | | | | | | | | | |
| Interest-bearing demand deposits | |
| $12,862 |
|
| $— |
| — | % | |
| $9,067 |
|
| $— |
| — | % | |
| $6,688 |
|
| $— |
| — | % |
| NOW accounts | | 311,077 |
| 47 |
| 0.06 | % | | 311,948 |
| 47 |
| 0.06 | % | | 293,634 |
| 45 |
| 0.06 | % |
| Money market accounts | | 798,273 |
| 830 |
| 0.41 | % | | 759,704 |
| 713 |
| 0.38 | % | | 591,860 |
| 456 |
| 0.31 | % |
| Savings accounts | | 291,386 |
| 46 |
| 0.06 | % | | 291,671 |
| 45 |
| 0.06 | % | | 295,821 |
| 47 |
| 0.06 | % |
| Time deposits | | 827,267 |
| 2,394 |
| 1.15 | % | | 813,558 |
| 2,315 |
| 1.14 | % | | 811,850 |
| 2,516 |
| 1.23 | % |
| FHLBB advances | | 283,219 |
| 1,832 |
| 2.57 | % | | 220,088 |
| 1,758 |
| 3.20 | % | | 328,705 |
| 2,693 |
| 3.25 | % |
| Junior subordinated debentures | | 22,681 |
| 241 |
| 4.22 | % | | 22,681 |
| 241 |
| 4.26 | % | | 22,681 |
| 241 |
| 4.22 | % |
| Other | | 151 |
| 3 |
| 7.88 | % | | 162 |
| 4 |
| 9.90 | % | | 353 |
| 4 |
| 4.50 | % |
| Total interest-bearing liabilities | | 2,546,916 |
| 5,393 |
| 0.84 | % | | 2,428,879 |
| 5,123 |
| 0.85 | % | | 2,351,592 |
| 6,002 |
| 1.01 | % |
| Demand deposits | | 439,353 |
| | | | 409,851 |
| | | | 384,665 |
| | |
| Other liabilities | | 37,217 |
| | | | 35,684 |
| | | | 51,186 |
| | |
| Shareholders' equity | | 346,837 |
| | | | 340,235 |
| | | | 310,785 |
| | |
| Total liabilities and shareholders' equity | |
| $3,370,323 |
| | | |
| $3,214,649 |
| | | |
| $3,098,228 |
| | |
| Net interest income (FTE) | | |
| $25,537 |
| | | |
| $25,080 |
| | | |
| $23,971 |
| |
| Interest rate spread | | | | 3.05 | % | | | | 3.18 | % | | | | 3.11 | % |
| Net interest margin | | | | 3.21 | % | | | | 3.35 | % | | | | 3.29 | % |
Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:
|
| | | | | | | | | | | |
| (Dollars in thousands) | Three Months Ended |
| | Sep 30, 2014 | | Jun 30, 2014 | | Sep 30, 2013 |
| Commercial loans |
| $329 |
| |
| $322 |
| |
| $252 |
|
| Nontaxable debt securities | 270 |
| | 290 |
| | 331 |
|
| Total |
| $599 |
| |
| $612 |
| |
| $583 |
|
|
| | | | | | | | | | | | | | | | | | |
| |
| Washington Trust Bancorp, Inc. and Subsidiaries |
CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited) |
| | | Nine Months Ended |
| | | September 30, 2014 | | September 30, 2013 |
| | | Average Balance | Interest | Yield/ Rate | | Average Balance | Interest | Yield/ Rate |
| (Dollars in thousands) | |
| Assets: | | | | | | | | |
| Commercial loans | |
| $1,352,271 |
|
| $43,733 |
| 4.32 | % | |
| $1,277,753 |
|
| $44,443 |
| 4.65 | % |
| Residential real estate loans, including loans held for sale | | 869,230 |
| 26,704 |
| 4.11 | % | | 766,162 |
| 23,805 |
| 4.15 | % |
| Consumer loans | | 333,127 |
| 9,527 |
| 3.82 | % | | 323,871 |
| 9,226 |
| 3.81 | % |
| Total loans | | 2,554,628 |
| 79,964 |
| 4.19 | % | | 2,367,786 |
| 77,474 |
| 4.37 | % |
| Cash, federal funds sold and short-term investments | | 65,486 |
| 99 |
| 0.20 | % | | 61,945 |
| 99 |
| 0.21 | % |
| FHLBB stock | | 37,730 |
| 420 |
| 1.49 | % | | 38,409 |
| 113 |
| 0.39 | % |
| Taxable debt securities | | 329,779 |
| 8,038 |
| 3.26 | % | | 304,854 |
| 8,003 |
| 3.51 | % |
| Nontaxable debt securities | | 56,894 |
| 2,520 |
| 5.92 | % | | 66,444 |
| 2,949 |
| 5.93 | % |
| Total securities | | 386,673 |
| 10,558 |
| 3.65 | % | | 371,298 |
| 10,952 |
| 3.94 | % |
| Total interest-earning assets | | 3,044,517 |
| 91,041 |
| 4.00 | % | | 2,839,438 |
| 88,638 |
| 4.17 | % |
| Noninterest-earning assets | | 209,286 |
| | | | 211,108 |
| | |
| Total assets | |
| $3,253,803 |
| | | |
| $3,050,546 |
| | |
| Liabilities and Shareholders' Equity: | | | | | | | | |
| Interest-bearing demand deposits | |
| $10,906 |
|
| $— |
| — | % | |
| $2,299 |
|
| $— |
| — | % |
| NOW accounts | | 309,101 |
| 141 |
| 0.06 | % | | 288,871 |
| 135 |
| 0.06 | % |
| Money market accounts | | 748,121 |
| 2,152 |
| 0.38 | % | | 541,160 |
| 1,189 |
| 0.29 | % |
| Savings accounts | | 291,949 |
| 136 |
| 0.06 | % | | 287,360 |
| 139 |
| 0.06 | % |
| Time deposits | | 812,871 |
| 6,977 |
| 1.15 | % | | 841,418 |
| 7,891 |
| 1.25 | % |
| FHLBB advances | | 257,814 |
| 5,831 |
| 3.02 | % | | 333,544 |
| 8,109 |
| 3.25 | % |
| Junior subordinated debentures | | 22,681 |
| 723 |
| 4.26 | % | | 28,988 |
| 1,243 |
| 5.73 | % |
| Other | | 162 |
| 10 |
| 8.25 | % | | 565 |
| 12 |
| 2.84 | % |
| Total interest-bearing liabilities | | 2,453,605 |
| 15,970 |
| 0.87 | % | | 2,324,205 |
| 18,718 |
| 1.08 | % |
| Demand deposits | | 424,120 |
| | | | 370,508 |
| | |
| Other liabilities | | 35,335 |
| | | | 51,250 |
| | |
| Shareholders' equity | | 340,743 |
| | | | 304,583 |
| | |
| Total liabilities and shareholders' equity | |
| $3,253,803 |
| | | |
| $3,050,546 |
| | |
| Net interest income (FTE) | | |
| $75,071 |
| | | |
| $69,920 |
| |
| Interest rate spread | | | | 3.13 | % | | | | 3.09 | % |
| Net interest margin | | | | 3.30 | % | | | | 3.29 | % |
Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:
|
| | | | | | | |
| (Dollars in thousands) | Nine Months Ended |
| | Sep 30, 2014 | | Sep 30, 2013 |
| Commercial loans |
| $967 |
| |
| $642 |
|
| Nontaxable debt securities | 862 |
| | 1,014 |
|
| Total |
| $1,829 |
| |
| $1,656 |
|
|
| | | | | | | | | | | | | | | | | | | |
| Washington Trust Bancorp, Inc. and Subsidiaries |
SUPPLEMENTAL INFORMATION - Non-GAAP Financial Measures (unaudited) |
| | At or for the Quarters Ended |
| (Dollars in thousands, except per share amounts) | Sep 30,
2014 | | Jun 30,
2014 | | Mar 31,
2014 | | Dec 31,
2013 | | Sep 30,
2013 |
| Calculation of Tangible Book Value per Share: | | | | | | | | | |
| Total shareholders' equity at end of period |
| $348,562 |
| |
| $343,450 |
| |
| $335,858 |
| |
| $329,646 |
| |
| $323,585 |
|
| Less: | | | | | | | | | |
| Goodwill | 58,114 |
| | 58,114 |
| | 58,114 |
| | 58,114 |
| | 58,114 |
|
| Identifiable intangible assets, net | 5,004 |
| | 5,165 |
| | 5,329 |
| | 5,493 |
| | 5,657 |
|
| Total tangible shareholders' equity at end of period |
| $285,444 |
| |
| $280,171 |
| |
| $272,415 |
| |
| $266,039 |
| |
| $259,814 |
|
| | | | | | | | | | |
| Shares outstanding at end of period | 16,721 |
| | 16,705 |
| | 16,635 |
| | 16,614 |
| | 16,589 |
|
| | | | | | | | | | |
| Book value per share - GAAP |
| $20.85 |
| |
| $20.56 |
| |
| $20.19 |
| |
| $19.84 |
| |
| $19.51 |
|
| Tangible book value per share - Non-GAAP |
| $17.07 |
| |
| $16.77 |
| |
| $16.38 |
| |
| $16.01 |
| |
| $15.66 |
|
| | | | | | | | | | |
| Calculation of Tangible Equity to Tangible Assets: | | | | | | | | | |
| Total tangible shareholders' equity at end of period |
| $285,444 |
| |
| $280,171 |
| |
| $272,415 |
| |
| $266,039 |
| |
| $259,814 |
|
| | | | | | | | | | |
| Total assets at end of period |
| $3,415,882 |
| |
| $3,317,022 |
| |
| $3,194,146 |
| |
| $3,188,867 |
| |
| $3,131,958 |
|
| Less: | | | | | | | | | |
| Goodwill | 58,114 |
| | 58,114 |
| | 58,114 |
| | 58,114 |
| | 58,114 |
|
| Identifiable intangible assets, net | 5,004 |
| | 5,165 |
| | 5,329 |
| | 5,493 |
| | 5,657 |
|
| Total tangible assets at end of period |
| $3,352,764 |
| |
| $3,253,743 |
| |
| $3,130,703 |
| |
| $3,125,260 |
| |
| $3,068,187 |
|
| | | | | | | | | | |
| Equity to assets - GAAP | 10.20 | % | | 10.35 | % | | 10.51 | % | | 10.34 | % | | 10.33 | % |
| Tangible equity to tangible assets - Non-GAAP | 8.51 | % | | 8.61 | % | | 8.70 | % | | 8.51 | % | | 8.47 | % |
| | | | | | | | | | |
| Calculation of Return on Average Tangible Assets: | | | | | | | | | |
| Net income |
| $10,538 |
| |
| $9,797 |
| |
| $9,298 |
| |
| $9,789 |
| |
| $9,960 |
|
| | | | | | | | | | |
| Total average assets |
| $3,370,323 |
| |
| $3,214,649 |
| |
| $3,174,281 |
| |
| $3,163,042 |
| |
| $3,098,228 |
|
| Less: | | | | | | | | | |
| Average goodwill | 58,114 |
| | 58,114 |
| | 58,114 |
| | 58,114 |
| | 58,114 |
|
| Average identifiable intangible assets, net | 5,082 |
| | 5,245 |
| | 5,410 |
| | 5,573 |
| | 5,739 |
|
| Total average tangible assets |
| $3,307,127 |
| |
| $3,151,290 |
| |
| $3,110,757 |
| |
| $3,099,355 |
| |
| $3,034,375 |
|
| | | | | | | | | | |
| Return on average assets - GAAP | 1.25 | % | | 1.22 | % | | 1.17 | % | | 1.24 | % | | 1.29 | % |
| Return on average tangible assets - Non-GAAP | 1.27 | % | | 1.24 | % | | 1.20 | % | | 1.26 | % | | 1.31 | % |
| | | | | | | | | | |
| Calculation of Return on Average Tangible Equity: | | | | | | | | | |
| Net income |
| $10,538 |
| |
| $9,797 |
| |
| $9,298 |
| |
| $9,789 |
| |
| $9,960 |
|
| | | | | | | | | | |
| Total average shareholders' equity |
| $346,837 |
| |
| $340,235 |
| |
| $335,029 |
| |
| $326,866 |
| |
| $310,785 |
|
| Less: | | | | | | | | | |
| Average goodwill | 58,114 |
| | 58,114 |
| | 58,114 |
| | 58,114 |
| | 58,114 |
|
| Average identifiable intangible assets, net | 5,082 |
| | 5,245 |
| | 5,410 |
| | 5,573 |
| | 5,739 |
|
| Total average tangible shareholders' equity |
| $283,641 |
| |
| $276,876 |
| |
| $271,505 |
| |
| $263,179 |
| |
| $246,932 |
|
| | | | | | | | | | |
| Return on average shareholders' equity - GAAP | 12.15 | % | | 11.52 | % | | 11.10 | % | | 11.98 | % | | 12.82 | % |
| Return on average tangible shareholders' equity - Non-GAAP | 14.86 | % | | 14.15 | % | | 13.70 | % | | 14.80 | % | | 16.13 | % |
|
| | | | | | | |
| Washington Trust Bancorp, Inc. and Subsidiaries |
SUPPLEMENTAL INFORMATION - Non-GAAP Financial Measures (unaudited) |
| | |
| | Nine Months Ended |
| (Dollars in thousands) | Sep 30,
2014 | | Sep 30,
2013 |
| Calculation of return on average tangible assets: | | | |
| Net income |
| $29,633 |
| |
| $26,364 |
|
| | | | |
| Total average assets |
| $3,253,803 |
| |
| $3,050,546 |
|
| Less: | | | |
| Average goodwill | 58,114 |
| | 58,114 |
|
| Average identifiable intangible assets, net | 5,244 |
| | 5,911 |
|
| Total average tangible assets |
| $3,190,445 |
| |
| $2,986,521 |
|
| | | | |
| Return on average assets - GAAP | 1.21 | % | | 1.15 | % |
| Return on average tangible assets - Non-GAAP | 1.24 | % | | 1.18 | % |
| | | | |
| | | | |
| Calculation of return on average tangible equity: | | | |
| Net income |
| $29,633 |
| |
| $26,364 |
|
| | | | |
| Total average shareholders' equity |
| $340,743 |
| |
| $304,583 |
|
| Less: | | | |
| Average goodwill | 58,114 |
| | 58,114 |
|
| Average identifiable intangible assets, net | 5,244 |
| | 5,911 |
|
| Total average tangible shareholders' equity |
| $277,385 |
| |
| $240,558 |
|
| | | | |
| Return on average shareholders' equity - GAAP | 11.60 | % | | 11.54 | % |
| Return on average tangible shareholders' equity - Non-GAAP | 14.24 | % | | 14.61 | % |
