NASDAQ: WASH
Contact: Elizabeth B. Eckel
Senior Vice President, Marketing
Telephone: (401) 348-1309
E-mail: ebeckel@washtrust.com
Date: January 28, 2015
FOR IMMEDIATE RELEASE
Washington Trust Reports Record Fourth Quarter and 2014 Earnings
WESTERLY, R.I., January 28, 2015 (GLOBE NEWSWIRE)…Washington Trust Bancorp, Inc. (Nasdaq:WASH), parent company of The Washington Trust Company, today announced net income of $11.2 million, or 66 cents per diluted share, for the fourth quarter of 2014. Net income was up by 6% from the $10.5 million, or 62 cents per diluted share, reported for the previous quarter.
Net income for the year ended December 31, 2014 totaled $40.8 million, or $2.41 per diluted share. Full-year net income increased by $4.7 million, or 13%, from the amounts reported for 2013.
"Washington Trust posted excellent fourth quarter and full-year results," stated Joseph J. MarcAurele, Chairman and Chief Executive Officer. "In 2014, we opened a mortgage office in Darien, CT, a branch in Johnston, RI, and announced plans to open a branch in Rumford, RI in early 2015. Our ability to bring our unique brand into new markets, while consistently delivering quality products and local, personal service has been a key part of our continued success."
Selected highlights for the fourth quarter of 2014 include:
| |
| • | Fourth quarter net income and earnings per share results were both record highs for Washington Trust. |
| |
| • | Returns on average equity and average assets were 12.68% and 1.27%, respectively. Comparable amounts for the third quarter of 2014 were 12.15% and 1.25%, respectively. |
| |
| • | Loans totaled $2.86 billion at December 31, 2014, up by 7% from September 30, 2014 and up by 16% from December 31, 2013. |
Net Interest Income
Net interest income totaled $26.3 million for the fourth quarter of 2014, up by $1.3 million, or 5%, from the $24.9 million reported for the third quarter of 2014. The net interest margin was 3.23% for the fourth quarter of 2014, compared to 3.21% for the third quarter of 2014. Included in net interest income was commercial loan prepayment penalty fee income of $445 thousand in the fourth quarter of 2014, compared to a minimal amount of such fee income in the previous quarter. Excluding the loan prepayment penalty fees, the net interest margin was 3.18% for the fourth quarter, down by 3 basis points on a linked quarter basis. Other significant linked quarter changes included:
Washington Trust
Page 2, January 28, 2015
| |
| • | Average interest-earning assets increased by $153.0 million, reflecting growth in average commercial and residential loan balances. The yield on interest-earning assets, excluding the contribution of 6 basis points from the loan prepayment penalty fees, was 3.85% for the fourth quarter. The 4 basis point decline from the previous quarter was primarily due to lower rates on loan originations and payoffs of higher yielding loans. |
| |
| • | Average interest-bearing liabilities increased by $121.5 million, with growth in average wholesale funding balances and average interest-bearing deposits. The cost of funds remained unchanged from the previous quarter. |
Noninterest Income
Noninterest income totaled $13.7 million for the fourth quarter of 2014, up by $581 thousand, or 4%, from $13.1 million for the third quarter of 2014. Included in noninterest income were the following:
| |
| • | Wealth management revenues totaled $8.4 million for the fourth quarter of 2014, up modestly on a linked quarter basis. Wealth management assets under administration amounted to $5.070 billion at December 31, 2014, up by $86.5 million, or 2%, from September 30, 2014. |
| |
| • | Net gains on loan sales and commissions on loans originated for others totaled $2.1 million for the fourth quarter of 2014, up by $372 thousand, or 21%, on a linked quarter basis. Residential mortgage loans sold to the secondary market amounted to $99.4 million in the fourth quarter, up by $19.3 million from the previous quarter. |
| |
| • | Net gains on interest rate swap contracts amounted to $574 thousand for the fourth quarter of 2014, up by $235 thousand, or 69%, from the previous quarter, due to an increase in customer-related interest rate swap transactions in the fourth quarter of 2014. Net gains on interest rate swaps for the fourth quarter of 2014 were approximately $387 thousand higher than the average amount of net gains recognized for each of the first three quarters of 2014. |
Noninterest Expenses
Noninterest expenses totaled $23.1 million for the fourth quarter of 2014, up by $1.0 million, or 5%, from $22.0 million for the third quarter of 2014. Included in noninterest expenses in the fourth quarter of 2014 was a charitable contribution expense of $400 thousand (classified in other expenses); there was no such expense in the previous quarter. The remaining linked quarter change was primarily due to an increase of $312 thousand in profit-based incentives and an increase of $148 thousand in outsourced services largely associated with customer-related interest rate swaps executed in the period.
Income tax expense amounted to $5.2 million for the fourth quarter of 2014, up by $340 thousand, or 7%, from $4.9 million for the third quarter of 2014. The effective tax rate for the fourth quarter of 2014 was 31.8%, compared to 31.6% from the third 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 32.0% for 2015.
Asset Quality
Asset quality metrics remained strong and continued to improve. Total nonaccrual loans amounted to $15.9 million, or 0.56% of total loans, at December 31, 2014, down from $17.0 million, or 0.63%, at September 30, 2014. Total past due loans amounted to $18.1 million, or 0.63% of total loans, at December 31, 2014, down from $19.9 million, or 0.75% of total loans, at September 30, 2014. Loans classified as troubled debt restructurings amounted to $18.4 million at December 31, 2014, compared to $18.3 million at the end of the previous quarter.
Washington Trust
Page 3, January 28, 2015
The loan loss provision charged to earnings in the fourth quarter of 2014 totaled $500 thousand, down from $600 thousand in the third quarter of 2014. Net charge-offs amounted to $245 thousand in the fourth quarter of 2014, compared to $101 thousand in the third quarter of 2014. Net charge-offs as a percentage of average loans was 0.07% on an annualized basis for 2014, down from 0.23% for 2013. The allowance for loan losses was $28.0 million, or 0.98% of total loans, at December 31, 2014, compared to $27.8 million, or 1.04% of total loans, at September 30, 2014. The decline in this ratio is consistent with the stable and favorable trends in asset and credit quality metrics.
Loans
In the latest quarter, Washington Trust achieved solid loan growth in the southern New England market. Total loans amounted to $2.86 billion at December 31, 2014, up by $185.2 million, or 7%, from the balance at September 30, 2014.
| |
| • | Total commercial loans increased by $145.1 million, or 10%, with growth in both commercial real estate and commercial and industrial loans. |
| |
| • | The residential real estate loan portfolio grew by $39.8 million, or 4%. |
| |
| • | Consumer loans increased slightly by $279 thousand, or 0.1%. |
Investment Securities
The securities portfolio amounted to $382.9 million, or 11% of total assets, at December 31, 2014, down from $402.6 million, or 12%, at September 30, 2014. The decrease of $19.7 million was due to principal payments received on mortgage-backed securities and maturities and calls of state and political subdivision debt securities.
Deposits and Borrowings
Deposits totaled $2.75 billion at December 31, 2014, up by $15.9 million, or 1%, from the balance at September 30, 2014. This increase included an $87.9 million increase in wholesale brokered time deposits. Excluding wholesale brokered time deposits, in-market deposits decreased by $72.0 million, or 3%.
| |
| • | In-market time deposits decreased by $38.6 million, or 6%. |
| |
| • | Demand deposits decreased by $17.0 million, or 4%, while NOW account balances increased by $13.0 million, or 4%. |
| |
| • | Money market and savings account balances decreased by $29.4 million, or 3%. |
FHLBB advances amounted to $406.3 million at December 31, 2014, up by $144.6 million from September 30, 2014.
Capital Management and Dividends
Capital levels at December 31, 2014 exceeded the regulatory minimum levels to be considered well capitalized, with a total risk-based capital ratio of 12.56% at December 31, 2014, compared to 13.26% at September 30, 2014. Total shareholder's equity was $346.3 million at December 31, 2014, down by $2.3 million from September 30, 2014. A charge of $8.9 million to the accumulated other comprehensive income component of shareholders' equity was recorded at December 31, 2014 associated with the annual measurement of defined benefit pension liabilities. This charge was largely due to the adoption of new mortality assumptions recently issued by the Society of Actuaries, as well as a decline in the discount rate used to measure the present value of pension liabilities as a result of a reduction in market interest rates in 2014.
Washington Trust
Page 4, January 28, 2015
The Board of Directors declared a quarterly dividend of 32 cents per share for the quarter ended December 31, 2014. The dividend was paid on January 14, 2015 to shareholders of record on January 2, 2015.
Conference Call
Washington Trust will host a conference call to discuss fourth quarter results, business highlights and outlook on Thursday, January 29, 2015 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 13598651; the audio replay will be available through February 8, 2015. 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 March 31, 2015.
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: 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 Washington Trust'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) | | Dec 31,
2014 | | Dec 31,
2013 |
| Assets: | | | | |
| Cash and due from banks | |
| $76,386 |
| |
| $81,939 |
|
| Short-term investments | | 3,964 |
| | 3,378 |
|
| Mortgage loans held for sale (including $30,321 in 2014 and $11,636 in 2013 measured at fair value) | | 45,693 |
| | 11,636 |
|
| Securities: | | | | |
| Available for sale, at fair value | | 357,662 |
| | 392,903 |
|
| Held to maturity, at amortized cost (fair value $26,008 in 2014 and $29,865 in 2013) | | 25,222 |
| | 29,905 |
|
| Total securities | | 382,884 |
| | 422,808 |
|
| Federal Home Loan Bank stock, at cost | | 37,730 |
| | 37,730 |
|
| Loans: | | | | |
| Commercial | | 1,535,488 |
| | 1,363,335 |
|
| Residential real estate | | 985,415 |
| | 772,674 |
|
| Consumer | | 338,373 |
| | 326,875 |
|
| Total loans | | 2,859,276 |
| | 2,462,884 |
|
| Less allowance for loan losses | | 28,023 |
| | 27,886 |
|
| Net loans | | 2,831,253 |
| | 2,434,998 |
|
| Premises and equipment, net | | 27,495 |
| | 25,402 |
|
| Investment in bank-owned life insurance | | 63,519 |
| | 56,673 |
|
| Goodwill | | 58,114 |
| | 58,114 |
|
| Identifiable intangible assets, net | | 4,849 |
| | 5,493 |
|
| Other assets | | 54,987 |
| | 50,696 |
|
| Total assets | |
| $3,586,874 |
| |
| $3,188,867 |
|
| Liabilities: | | | | |
| Deposits: | | | | |
| Demand deposits | |
| $459,852 |
| |
| $440,785 |
|
| NOW accounts | | 326,375 |
| | 309,771 |
|
| Money market accounts | | 802,764 |
| | 666,646 |
|
| Savings accounts | | 291,725 |
| | 297,357 |
|
| Time deposits | | 874,102 |
| | 790,762 |
|
| Total deposits | | 2,754,818 |
| | 2,505,321 |
|
| Federal Home Loan Bank advances | | 406,297 |
| | 288,082 |
|
| Junior subordinated debentures | | 22,681 |
| | 22,681 |
|
| Other liabilities | | 56,799 |
| | 43,137 |
|
| Total liabilities | | 3,240,595 |
| | 2,859,221 |
|
| Shareholders’ Equity: | | | | |
Common stock of $.0625 par value; authorized 30,000,000 shares; issued and outstanding 16,746,363 shares in 2014 and 16,613,561 shares in 2013
| | 1,047 |
| | 1,038 |
|
| Paid-in capital | | 101,204 |
| | 97,566 |
|
| Retained earnings | | 252,837 |
| | 232,595 |
|
| Accumulated other comprehensive loss | | (8,809 | ) | | (1,553 | ) |
| Total shareholders’ equity | | 346,279 |
| | 329,646 |
|
| Total liabilities and shareholders’ equity | |
| $3,586,874 |
| |
| $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 | | Twelve Months |
| Periods ended December 31, | 2014 | | 2013 | | 2014 | | 2013 |
| Interest income: | | | | | | | |
| Interest and fees on loans | |
| $28,845 |
| |
| $25,649 |
| |
| $107,842 |
| |
| $102,481 |
|
| Interest on securities: | Taxable | 2,399 |
| | 3,005 |
| | 10,437 |
| | 11,008 |
|
| | Nontaxable | 491 |
| | 618 |
| | 2,149 |
| | 2,553 |
|
| Dividends on Federal Home Loan Bank stock | 141 |
| | 35 |
| | 561 |
| | 148 |
|
| Other interest income | 29 |
| | 59 |
| | 128 |
| | 158 |
|
| Total interest and dividend income | 31,905 |
| | 29,366 |
| | 121,117 |
| | 116,348 |
|
| Interest expense: |
|
| |
|
| |
|
| |
|
|
| Deposits | 3,531 |
| | 3,066 |
| | 12,937 |
| | 12,420 |
|
| Federal Home Loan Bank advances | 1,867 |
| | 2,534 |
| | 7,698 |
| | 10,643 |
|
| Junior subordinated debentures | 241 |
| | 241 |
| | 964 |
| | 1,484 |
|
| Other interest expense | 3 |
| | 4 |
| | 13 |
| | 16 |
|
| Total interest expense | 5,642 |
| | 5,845 |
| | 21,612 |
| | 24,563 |
|
| Net interest income | 26,263 |
| | 23,521 |
| | 99,505 |
| | 91,785 |
|
| Provision for loan losses | 500 |
| | 400 |
| | 1,850 |
| | 2,400 |
|
| Net interest income after provision for loan losses | 25,763 |
| | 23,121 |
| | 97,655 |
| | 89,385 |
|
| Noninterest income: |
|
| |
|
| |
|
| |
|
|
| Wealth management revenues | 8,409 |
| | 8,810 |
| | 33,378 |
| | 31,825 |
|
| Merchant processing fees | — |
| | 2,271 |
| | 1,291 |
| | 10,220 |
|
| Net gains on loan sales and commissions on loans originated for others | 2,114 |
| | 1,551 |
| | 6,802 |
| | 13,085 |
|
| Service charges on deposit accounts | 936 |
| | 820 |
| | 3,395 |
| | 3,256 |
|
| Card interchange fees | 793 |
| | 775 |
| | 3,057 |
| | 2,788 |
|
| Income from bank-owned life insurance | 492 |
| | 458 |
| | 1,846 |
| | 1,850 |
|
| Net gains on interest rate swap contracts | 574 |
| | 726 |
| | 1,136 |
| | 951 |
|
| Equity in earnings (losses) of unconsolidated subsidiaries | (63 | ) | | (42 | ) | | (276 | ) | | (107 | ) |
| Gain on sale of business line | — |
| | — |
| | 6,265 |
| | — |
|
| Other income | 451 |
| | 468 |
| | 2,121 |
| | 1,701 |
|
| Noninterest income, excluding other-than-temporary impairment losses | 13,706 |
| | 15,837 |
| | 59,015 |
| | 65,569 |
|
| Total other-than-temporary impairment losses on securities | — |
| | 319 |
| | — |
| | (294 | ) |
| Portion of loss recognized in other comprehensive income (before tax) | — |
| | (1,036 | ) | | — |
| | (3,195 | ) |
| Net impairment losses recognized in earnings | — |
| | (717 | ) | | — |
| | (3,489 | ) |
| Total noninterest income | 13,706 |
| | 15,120 |
| | 59,015 |
| | 62,080 |
|
| Noninterest expense: |
|
| |
|
| |
|
| |
|
|
| Salaries and employee benefits | 14,685 |
| | 14,428 |
| | 58,530 |
| | 60,052 |
|
| Net occupancy | 1,640 |
| | 1,487 |
| | 6,312 |
| | 5,769 |
|
| Equipment | 1,221 |
| | 1,189 |
| | 4,903 |
| | 4,847 |
|
| Merchant processing costs | — |
| | 1,936 |
| | 1,050 |
| | 8,682 |
|
| Outsourced services | 1,286 |
| | 1,072 |
| | 4,483 |
| | 3,662 |
|
| Legal, audit and professional fees | 626 |
| | 639 |
| | 2,336 |
| | 2,330 |
|
| FDIC deposit insurance costs | 467 |
| | 431 |
| | 1,762 |
| | 1,761 |
|
| Advertising and promotion | 406 |
| | 321 |
| | 1,546 |
| | 1,464 |
|
| Amortization of intangibles | 155 |
| | 164 |
| | 644 |
| | 680 |
|
| Foreclosed property costs | (5 | ) | | 36 |
| | 43 |
| | 258 |
|
| Debt prepayment penalties | — |
| | — |
| | 6,294 |
| | 1,125 |
|
| Other expenses | 2,579 |
| | 2,345 |
| | 8,944 |
| | 8,155 |
|
| Total noninterest expense | 23,060 |
| | 24,048 |
| | 96,847 |
| | 98,785 |
|
| Income before income taxes | 16,409 |
| | 14,193 |
| | 59,823 |
| | 52,680 |
|
| Income tax expense | 5,218 |
| | 4,404 |
| | 18,999 |
| | 16,527 |
|
| Net income |
| $11,191 |
| |
| $9,789 |
| |
| $40,824 |
| |
| $36,153 |
|
| | | | | | | | |
| Weighted average common shares outstanding - basic | 16,735 |
| | 16,602 |
| | 16,689 |
| | 16,506 |
|
| Weighted average common shares outstanding - diluted | 16,911 |
| | 16,770 |
| | 16,872 |
| | 16,664 |
|
| Per share information: | Basic earnings per common share |
| $0.67 |
| |
| $0.59 |
| |
| $2.44 |
| |
| $2.18 |
|
| | Diluted earnings per common share |
| $0.66 |
| |
| $0.58 |
| |
| $2.41 |
| |
| $2.16 |
|
| | Cash dividends declared per share |
| $0.32 |
| |
| $0.27 |
| |
| $1.22 |
| |
| $1.03 |
|
|
| | | | | | | | | | | | | | | | | | | |
| 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) | Dec 31,
2014 | | Sep 30,
2014 | | Jun 30,
2014 | | Mar 31,
2014 | | Dec 31,
2013 |
| Financial Data: | | | | | | | | | |
| Total assets |
| $3,586,874 |
| |
| $3,415,882 |
| |
| $3,317,022 |
| |
| $3,194,146 |
| |
| $3,188,867 |
|
| Total loans | 2,859,276 |
| | 2,674,047 |
| | 2,581,124 |
| | 2,478,603 |
| | 2,462,884 |
|
| Total securities | 382,884 |
| | 402,553 |
| | 355,392 |
| | 389,889 |
| | 422,808 |
|
| Total deposits | 2,754,818 |
| | 2,738,888 |
| | 2,586,097 |
| | 2,591,654 |
| | 2,505,321 |
|
| Total shareholders' equity | 346,279 |
| | 348,562 |
| | 343,450 |
| | 335,858 |
| | 329,646 |
|
| Net interest income | 26,263 |
| | 24,938 |
| | 24,468 |
| | 23,836 |
| | 23,521 |
|
| Provision for loan losses | 500 |
| | 600 |
| | 450 |
| | 300 |
| | 400 |
|
| Noninterest income, excluding OTTI losses | 13,706 |
| | 13,125 |
| | 12,814 |
| | 19,370 |
| | 15,837 |
|
| Net OTTI losses recognized in earnings | — |
| | — |
| | — |
| | — |
| | (717 | ) |
| Noninterest expense | 23,060 |
| | 22,047 |
| | 22,448 |
| | 29,292 |
| | 24,048 |
|
| Income tax expense | 5,218 |
| | 4,878 |
| | 4,587 |
| | 4,316 |
| | 4,404 |
|
| Net income | 11,191 |
| | 10,538 |
| | 9,797 |
| | 9,298 |
| | 9,789 |
|
| | | | | | | | | | |
| Share Data: | | | | | | | | | |
| Basic earnings per common share |
| $0.67 |
| |
| $0.63 |
| |
| $0.59 |
| |
| $0.56 |
| |
| $0.59 |
|
| Diluted earnings per common share |
| $0.66 |
| |
| $0.62 |
| |
| $0.58 |
| |
| $0.55 |
| |
| $0.58 |
|
| Dividends declared per share |
| $0.32 |
| |
| $0.32 |
| |
| $0.29 |
| |
| $0.29 |
| |
| $0.27 |
|
| Book value per share |
| $20.68 |
| |
| $20.85 |
| |
| $20.56 |
| |
| $20.19 |
| |
| $19.84 |
|
Tangible book value per share - Non-GAAP (1) |
| $16.92 |
| |
| $17.07 |
| |
| $16.77 |
| |
| $16.38 |
| |
| $16.01 |
|
| Market value per share |
| $40.18 |
| |
| $32.99 |
| |
| $36.77 |
| |
| $37.47 |
| |
| $37.22 |
|
| Shares outstanding at end of period | 16,746 |
| | 16,721 |
| | 16,705 |
| | 16,635 |
| | 16,614 |
|
| Weighted average common shares outstanding - basic | 16,735 |
| | 16,714 |
| | 16,678 |
| | 16,626 |
| | 16,602 |
|
| Weighted average common shares outstanding - diluted | 16,911 |
| | 16,855 |
| | 16,831 |
| | 16,800 |
| | 16,770 |
|
| | | | | | | | | | |
| Key Ratios: | | | | | | | | | |
| Return on average assets | 1.27 | % | | 1.25 | % | | 1.22 | % | | 1.17 | % | | 1.24 | % |
Return on average tangible assets - Non-GAAP (1) | 1.29 | % | | 1.27 | % | | 1.24 | % | | 1.20 | % | | 1.26 | % |
| Return on average equity | 12.68 | % | | 12.15 | % | | 11.52 | % | | 11.10 | % | | 11.98 | % |
Return on average tangible equity - Non-GAAP (1) | 15.44 | % | | 14.86 | % | | 14.15 | % | | 13.70 | % | | 14.80 | % |
| Tier 1 risk-based capital | 11.52% (i) |
| | 12.15 | % | | 12.24 | % | | 12.42 | % | | 12.12 | % |
| Total risk-based capital | 12.56% (i) |
| | 13.26 | % | | 13.36 | % | | 13.56 | % | | 13.29 | % |
| Tier 1 leverage ratio | 9.14% (i) |
| | 9.35 | % | | 9.62 | % | | 9.56 | % | | 9.41 | % |
| Equity to assets | 9.65 | % | | 10.20 | % | | 10.35 | % | | 10.51 | % | | 10.34 | % |
Tangible equity to tangible assets - Non-GAAP (1) | 8.04 | % | | 8.51 | % | | 8.61 | % | | 8.70 | % | | 8.51 | % |
(i) - estimated | | | | | | | | | |
| | | | | | | | | | |
| Wealth Management Revenues: | | | | | | | | | |
| Trust and investment management fees |
| $7,059 |
| |
| $6,982 |
| |
| $6,828 |
| |
| $6,685 |
| |
| $6,637 |
|
| Mutual fund fees | 1,068 |
| | 1,100 |
| | 1,086 |
| | 1,081 |
| | 1,104 |
|
| Asset-based revenues | 8,127 |
| | 8,082 |
| | 7,914 |
| | 7,766 |
| | 7,741 |
|
| Transaction-based revenues | 282 |
| | 292 |
| | 616 |
| | 299 |
| | 1,069 |
|
| Total wealth management revenues |
| $8,409 |
| |
| $8,374 |
| |
| $8,530 |
| |
| $8,065 |
| |
| $8,810 |
|
| | | | | | | | | | |
| Wealth Management Assets Under Administration: | | | | | | | | | |
| Balance at beginning of period |
| $4,983,464 |
| |
| $5,010,588 |
| |
| $4,806,381 |
| |
| $4,781,958 |
| |
| $4,595,594 |
|
| Net investment appreciation (depreciation) & income | 111,715 |
| | (29,199 | ) | | 131,269 |
| | 44,335 |
| | 248,727 |
|
| Net client cash flows | (25,213 | ) | | 2,075 |
| | 72,938 |
| | (19,912 | ) | | (62,363 | ) |
| Balance at end of period |
| $5,069,966 |
| |
| $4,983,464 |
| |
| $5,010,588 |
| |
| $4,806,381 |
| |
| $4,781,958 |
|
| |
| (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) |
| | Twelve Months Ended |
| (Dollars in thousands) | Dec 31,
2014 | | Dec 31,
2013 |
| Key Ratios: | | | |
| Return on average assets | 1.23 | % | | 1.17 | % |
| Return on average tangible assets - Non-GAAP (1) | 1.25 | % | | 1.20 | % |
| Return on average equity | 11.87 | % | | 11.65 | % |
| Return on average tangible equity - Non-GAAP (1) | 14.55 | % | | 14.68 | % |
| | | | |
| Allowance for Loan Losses: | | | |
| Balance at beginning of period |
| $27,886 |
| |
| $30,873 |
|
| Provision charged to earnings | 1,850 |
| | 2,400 |
|
| Charge-offs | (1,949 | ) | | (6,022 | ) |
| Recoveries | 236 |
| | 635 |
|
| Balance at end of period |
| $28,023 |
| |
| $27,886 |
|
| | | | |
| Net Loan Charge-Offs (Recoveries): | | | |
| Commercial mortgages |
| $953 |
| |
| $4,833 |
|
| Commercial & industrial | 472 |
| | 205 |
|
| Residential real estate mortgages | 81 |
| | 125 |
|
| Consumer | 207 |
| | 224 |
|
| Total |
| $1,713 |
| |
| $5,387 |
|
| | | | |
| Net charge-offs to average loans (annualized) | 0.07 | % | | 0.23 | % |
| | | | |
| Wealth Management Revenues: | | | |
| Trust and investment management fees |
| $27,554 |
| |
| $25,224 |
|
| Mutual fund fees | 4,335 |
| | 4,278 |
|
| Asset-based revenues | 31,889 |
| | 29,502 |
|
| Transaction-based revenues | 1,489 |
| | 2,323 |
|
| Total wealth management revenues |
| $33,378 |
| |
| $31,825 |
|
| | | | |
Wealth Management Assets Under Administration: | | | |
| Balance at beginning of period |
| $4,781,958 |
| |
| $4,199,640 |
|
| Net investment appreciation & income | 258,120 |
| | 632,681 |
|
| Net client cash flows | 29,888 |
| | (50,363 | ) |
| Balance at end of period |
| $5,069,966 |
| |
| $4,781,958 |
|
| |
| (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 |
| | Dec 31,
2014 | | Sep 30,
2014 | | Jun 30,
2014 | | Mar 31,
2014 | | Dec 31,
2013 |
| Average Yield / Rate (taxable equivalent basis): | | | | | | | | | |
| Assets: | | | | | | | | | |
| Commercial loans | 4.23 | % | | 4.20 | % | | 4.35 | % | | 4.43 | % | | 4.52 | % |
| Residential real estate loans, including mortgage loans held for sale | 4.06 | % | | 4.06 | % | | 4.12 | % | | 4.15 | % | | 4.09 | % |
| Consumer loans | 3.79 | % | | 3.83 | % | | 3.81 | % | | 3.83 | % | | 3.77 | % |
| Total loans | 4.12 | % | | 4.10 | % | | 4.20 | % | | 4.26 | % | | 4.28 | % |
| Cash, federal funds sold and other short-term investments | 0.18 | % | | 0.19 | % | | 0.19 | % | | 0.23 | % | | 0.22 | % |
| FHLBB stock | 1.48 | % | | 1.47 | % | | 1.47 | % | | 1.53 | % | | 0.37 | % |
| Taxable debt securities | 2.83 | % | | 2.94 | % | | 3.36 | % | | 3.47 | % | | 3.40 | % |
| Nontaxable debt securities | 5.87 | % | | 5.86 | % | | 5.92 | % | | 5.98 | % | | 5.88 | % |
| Total securities | 3.22 | % | | 3.36 | % | | 3.74 | % | | 3.84 | % | | 3.78 | % |
| Total interest-earning assets | 3.91 | % | | 3.89 | % | | 4.03 | % | | 4.08 | % | | 4.02 | % |
| Liabilities: | | | | | | | | | |
| Interest-bearing demand deposits | — | % | | — | % | | — | % | | — | % | | — | % |
| NOW accounts | 0.06 | % | | 0.06 | % | | 0.06 | % | | 0.06 | % | | 0.06 | % |
| Money market accounts | 0.43 | % | | 0.41 | % | | 0.38 | % | | 0.36 | % | | 0.34 | % |
| Savings accounts | 0.06 | % | | 0.06 | % | | 0.06 | % | | 0.06 | % | | 0.06 | % |
| Time deposits (in-market) | 1.14 | % | | 1.17 | % | | 1.16 | % | | 1.16 | % | | 1.20 | % |
| Wholesale brokered time deposits | 1.23 | % | | 1.09 | % | | 1.05 | % | | 1.12 | % | | 1.13 | % |
| FHLBB advances | 2.28 | % | | 2.57 | % | | 3.20 | % | | 3.37 | % | | 3.49 | % |
| Junior subordinated debentures | 4.22 | % | | 4.22 | % | | 4.26 | % | | 4.31 | % | | 4.22 | % |
| Other | 8.50 | % | | 7.88 | % | | 9.90 | % | | 7.03 | % | | 2.52 | % |
| Total interest-bearing liabilities | 0.84 | % | | 0.84 | % | | 0.85 | % | | 0.93 | % | | 0.98 | % |
| | | | | | | | | | |
| Interest rate spread (taxable equivalent basis) | 3.07 | % | | 3.05 | % | | 3.18 | % | | 3.15 | % | | 3.04 | % |
| Net interest margin (taxable equivalent basis) | 3.23 | % | | 3.21 | % | | 3.35 | % | | 3.34 | % | | 3.24 | % |
|
| | | | | | | | | | | | | | | | |
| | | At December 31, 2014 |
| | | Amortized | | Unrealized | | Unrealized | | Fair |
| (Dollars in thousands) | | Cost (1) | | Gains | | Losses | | Value |
| Securities Available for Sale: | | | | | | | | |
| Obligations of U.S. government-sponsored enterprises | |
| $31,205 |
| |
| $21 |
| |
| ($54 | ) | |
| $31,172 |
|
| Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | | 235,343 |
| | 10,023 |
| | — |
| | 245,366 |
|
| Obligations of states and political subdivisions | | 47,647 |
| | 1,529 |
| | — |
| | 49,176 |
|
| Individual name issuer trust preferred debt securities | | 30,753 |
| | — |
| | (4,979 | ) | | 25,774 |
|
| Corporate bonds | | 6,120 |
| | 57 |
| | (3 | ) | | 6,174 |
|
| Total securities available for sale | | 351,068 |
| | 11,630 |
| | (5,036 | ) | | 357,662 |
|
| Held to Maturity: | | | | | | | | |
| Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | | 25,222 |
| | 786 |
| | — |
| | 26,008 |
|
| Total securities held to maturity | | 25,222 |
| | 786 |
| | — |
| | 26,008 |
|
| Total securities | |
| $376,290 |
| |
| $12,416 |
| |
| ($5,036 | ) | |
| $383,670 |
|
| |
| (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) | Dec 31,
2014 | | Sep 30,
2014 | | Jun 30,
2014 | | Mar 31,
2014 | | Dec 31,
2013 |
| Loans: | | | | | | | | | |
| Commercial: | Mortgages |
| $843,978 |
| |
| $766,703 |
| |
| $772,772 |
| |
| $788,836 |
| |
| $796,249 |
|
| | Construction & development | 79,592 |
| | 58,750 |
| | 38,574 |
| | 24,696 |
| | 36,289 |
|
| | Commercial & industrial | 611,918 |
| | 564,920 |
| | 554,824 |
| | 523,751 |
| | 530,797 |
|
| | Total commercial | 1,535,488 |
| | 1,390,373 |
| | 1,366,170 |
| | 1,337,283 |
| | 1,363,335 |
|
| Residential real estate: | Mortgages | 948,731 |
| | 912,956 |
| | 846,187 |
| | 784,623 |
| | 749,163 |
|
| | Homeowner construction | 36,684 |
| | 32,624 |
| | 30,452 |
| | 25,770 |
| | 23,511 |
|
| | Total residential real estate | 985,415 |
| | 945,580 |
| | 876,639 |
| | 810,393 |
| | 772,674 |
|
| Consumer: | Home equity lines | 242,480 |
| | 240,567 |
| | 237,390 |
| | 233,728 |
| | 231,362 |
|
| | Home equity loans | 46,967 |
| | 46,455 |
| | 45,632 |
| | 41,991 |
| | 40,212 |
|
| | Other | 48,926 |
| | 51,072 |
| | 55,293 |
| | 55,208 |
| | 55,301 |
|
| | Total consumer | 338,373 |
| | 338,094 |
| | 338,315 |
| | 330,927 |
| | 326,875 |
|
| | Total loans |
| $2,859,276 |
| |
| $2,674,047 |
| |
| $2,581,124 |
| |
| $2,478,603 |
| |
| $2,462,884 |
|
|
| | | | | | |
| | At December 31, 2014 |
| (Dollars in thousands) | Balance |
| | % of Total |
| Commercial Real Estate Loans by Property Location: | | | |
| Rhode Island, Connecticut, Massachusetts |
| $861,422 |
| | 93.3 | % |
| New York, New Jersey, Pennsylvania | 53,625 |
| | 5.8 | % |
| New Hampshire | 8,523 |
| | 0.9 | % |
| Total commercial real estate loans (1) |
| $923,570 |
| | 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 December 31, 2014 |
| (Dollars in thousands) | Balance | | % of Total |
| Residential Mortgages by Property Location: | | | |
| Rhode Island, Connecticut, Massachusetts |
| $965,452 |
| | 98.1 | % |
| New Hampshire | 10,204 |
| | 1.0 | % |
| New York, Virginia, New Jersey, Maryland, Pennsylvania | 5,096 |
| | 0.5 | % |
| Ohio | 1,812 |
| | 0.2 | % |
| Washington, Oregon | 1,331 |
| | 0.1 | % |
| Georgia | 1,062 |
| | 0.1 | % |
| Other | 458 |
| | — | % |
| Total residential mortgages |
| $985,415 |
| | 100.0 | % |
|
| | | | | | | | | | | | | | | | | | | | |
| | | Period End Balances At |
| (Dollars in thousands) | | Dec 31,
2014 | | Sep 30,
2014 | | Jun 30,
2014 | | Mar 31,
2014 | | Dec 31,
2013 |
| Deposits: | | | | | | | | | | |
| Demand deposits | |
| $459,852 |
| |
| $476,808 |
| |
| $411,586 |
| |
| $445,570 |
| |
| $440,785 |
|
| NOW accounts | | 326,375 |
| | 313,391 |
| | 314,060 |
| | 311,461 |
| | 309,771 |
|
| Money market accounts | | 802,764 |
| | 833,318 |
| | 772,084 |
| | 704,434 |
| | 666,646 |
|
| Savings accounts | | 291,725 |
| | 290,561 |
| | 292,112 |
| | 293,322 |
| | 297,357 |
|
| Time deposits | | 874,102 |
| | 824,810 |
| | 796,255 |
| | 836,867 |
| | 790,762 |
|
| Total deposits | |
| $2,754,818 |
| |
| $2,738,888 |
| |
| $2,586,097 |
| |
| $2,591,654 |
| |
| $2,505,321 |
|
| | | | | | | | | | | |
| Out-of-market brokered certificates of deposits included in time deposits | |
| $299,129 |
| |
| $211,222 |
| |
| $171,216 |
| |
| $171,275 |
| |
| $98,009 |
|
| In-market deposits, excluding out-of-market brokered certificates of deposit | |
| $2,455,689 |
| |
| $2,527,666 |
| |
| $2,414,881 |
| |
| $2,420,379 |
| |
| $2,407,312 |
|
|
| | | | | | | | | | | | | | | | | | | |
| Washington Trust Bancorp, Inc. and Subsidiaries |
SELECTED FINANCIAL HIGHLIGHTS (unaudited) |
| | Period End Balances At |
| (Dollars in thousands) | Dec 31,
2014 | | Sep 30,
2014 | | Jun 30,
2014 | | Mar 31,
2014 | | Dec 31,
2013 |
| Asset Quality Ratios: | | | | | | | | | |
| Total past due loans to total loans | 0.63 | % | | 0.75 | % | | 0.82 | % | | 0.73 | % | | 0.89 | % |
| Nonperforming assets to total assets | 0.48 | % | | 0.53 | % | | 0.42 | % | | 0.45 | % | | 0.62 | % |
| Nonaccrual loans to total loans | 0.56 | % | | 0.63 | % | | 0.49 | % | | 0.55 | % | | 0.74 | % |
| Allowance for loan losses to nonaccrual loans | 175.75 | % | | 163.68 | % | | 217.54 | % | | 199.23 | % | | 152.37 | % |
| Allowance for loan losses to total loans | 0.98 | % | | 1.04 | % | | 1.06 | % | | 1.09 | % | | 1.13 | % |
| | | | | | | | | | |
| Nonperforming Assets: | | | | | | | | | |
| Commercial mortgages |
| $5,315 |
| |
| $6,022 |
| |
| $2,290 |
| |
| $2,293 |
| |
| $7,492 |
|
| Commercial construction & development | — |
| | — |
| | — |
| | — |
| | — |
|
| Commercial & industrial | 1,969 |
| | 1,326 |
| | 1,615 |
| | 1,198 |
| | 1,291 |
|
| Residential real estate mortgages | 7,124 |
| | 7,890 |
| | 7,417 |
| | 8,975 |
| | 8,315 |
|
| Consumer | 1,537 |
| | 1,727 |
| | 1,213 |
| | 1,108 |
| | 1,204 |
|
| Total nonaccrual loans | 15,945 |
| | 16,965 |
| | 12,535 |
| | 13,574 |
| | 18,302 |
|
| Nonaccrual investment securities | — |
| | — |
| | — |
| | — |
| | 547 |
|
| Property acquired through foreclosure or repossession | 1,176 |
| | 988 |
| | 1,309 |
| | 750 |
| | 932 |
|
| Total nonperforming assets |
| $17,121 |
| |
| $17,953 |
| |
| $13,844 |
| |
| $14,324 |
| |
| $19,781 |
|
| | | | | | | | | | |
| Troubled Debt Restructured Loans: | | | | | | | | | |
| Accruing troubled debt restructured loans: | | | | | | | | | |
| Commercial mortgages |
| $9,676 |
| |
| $9,677 |
| |
| $22,603 |
| |
| $22,796 |
| |
| $22,800 |
|
| Commercial & industrial | 954 |
| | 1,036 |
| | 969 |
| | 989 |
| | 1,265 |
|
| Residential real estate mortgages | 1,252 |
| | 1,258 |
| | 1,459 |
| | 1,467 |
| | 1,442 |
|
| Consumer | 135 |
| | 164 |
| | 167 |
| | 233 |
| | 236 |
|
| Accruing troubled debt restructured loans | 12,017 |
| | 12,135 |
| | 25,198 |
| | 25,485 |
| | 25,743 |
|
| Nonaccrual troubled debt restructured loans: | | | | | | | | | |
| Commercial mortgages | 4,898 |
| | 4,898 |
| | — |
| | — |
| | — |
|
| Commercial & industrial | 1,193 |
| | 854 |
| | 872 |
| | 369 |
| | 542 |
|
| Residential real estate mortgages | 248 |
| | 441 |
| | 448 |
| | 447 |
| | — |
|
| Consumer | — |
| | — |
| | — |
| | 29 |
| | 38 |
|
| Nonaccrual troubled debt restructured loans | 6,339 |
| | 6,193 |
| | 1,320 |
| | 845 |
| | 580 |
|
| Total troubled debt restructured loans |
| $18,356 |
| |
| $18,328 |
| |
| $26,518 |
| |
| $26,330 |
| |
| $26,323 |
|
|
| | | | | | | | | | | | | | | | | | | |
| Washington Trust Bancorp, Inc. and Subsidiaries |
SELECTED FINANCIAL HIGHLIGHTS (unaudited) |
| | Period End Balances At |
| (Dollars in thousands) | Dec 31,
2014 | | Sep 30,
2014 | | Jun 30,
2014 | | Mar 31,
2014 | | Dec 31,
2013 |
| Past Due Loans: | | | | | | | | | |
| Loans 30-59 Days Past Due: | | | | | | | | | |
| Commercial mortgages |
| $— |
| |
| $— |
| |
| $311 |
| |
| $— |
| |
| $— |
|
| Commercial & industrial | 2,136 |
| | 1,129 |
| | 1,785 |
| | 3,351 |
| | 276 |
|
| Residential real estate mortgages | 2,943 |
| | 2,582 |
| | 5,249 |
| | 2,232 |
| | 4,040 |
|
| Consumer loans | 954 |
| | 1,677 |
| | 1,889 |
| | 1,365 |
| | 1,322 |
|
| Loans 30-59 days past due |
| $6,033 |
| |
| $5,388 |
| |
| $9,234 |
| |
| $6,948 |
| |
| $5,638 |
|
| | | | | | | | | | |
| Loans 60-89 Days Past Due: | | | | | | | | | |
| Commercial mortgages |
| $— |
| |
| $— |
| |
| $1,583 |
| |
| $15 |
| |
| $— |
|
| Commercial & industrial | 1,202 |
| | 314 |
| | 773 |
| | 127 |
| | 302 |
|
| Residential real estate mortgages | 821 |
| | 2,001 |
| | 855 |
| | 1,265 |
| | 1,285 |
|
| Consumer loans | 345 |
| | 356 |
| | 1,102 |
| | 658 |
| | 166 |
|
| Loans 60-89 days past due |
| $2,368 |
| |
| $2,671 |
| |
| $4,313 |
| |
| $2,065 |
| |
| $1,753 |
|
| | | | | | | | | | |
| Loans 90 Days or more Past Due: | | | | | | | | | |
| Commercial mortgages |
| $5,315 |
| |
| $5,995 |
| |
| $2,250 |
| |
| $2,238 |
| |
| $7,492 |
|
| Commercial & industrial | 181 |
| | 970 |
| | 417 |
| | 428 |
| | 731 |
|
| Residential real estate mortgages | 3,284 |
| | 3,922 |
| | 4,335 |
| | 5,634 |
| | 5,633 |
|
| Consumer loans | 897 |
| | 989 |
| | 512 |
| | 701 |
| | 656 |
|
| Loans 90 days or more past due |
| $9,677 |
| |
| $11,876 |
| |
| $7,514 |
| |
| $9,001 |
| |
| $14,512 |
|
| | | | | | | | | | |
| Total Past Due Loans: | | | | | | | | | |
| Commercial mortgages |
| $5,315 |
| |
| $5,995 |
| |
| $4,144 |
| |
| $2,253 |
| |
| $7,492 |
|
| Commercial & industrial | 3,519 |
| | 2,413 |
| | 2,975 |
| | 3,906 |
| | 1,309 |
|
| Residential real estate mortgages | 7,048 |
| | 8,505 |
| | 10,439 |
| | 9,131 |
| | 10,958 |
|
| Consumer loans | 2,196 |
| | 3,022 |
| | 3,503 |
| | 2,724 |
| | 2,144 |
|
| Total past due loans |
| $18,078 |
| |
| $19,935 |
| |
| $21,061 |
| |
| $18,014 |
| |
| $21,903 |
|
| | | | | | | | | | |
| Accruing loans 90 days or more past due |
| $— |
| |
| $— |
| |
| $— |
| |
| $— |
| |
| $— |
|
| Nonaccrual loans included in past due loans |
| $12,721 |
| |
| $14,364 |
| |
| $10,432 |
| |
| $11,487 |
| |
| $15,591 |
|
|
| | | | | | | | | | | | | | | | | | | |
| | For the Quarters Ended |
| (Dollars in thousands) | Dec 31,
2014 | | Sep 30,
2014 | | Jun 30,
2014 | | Mar 31,
2014 | | Dec 31,
2013 |
| Allowance for Loan Losses: | | | | | | | | | |
| Balance at beginning of period |
| $27,768 |
| |
| $27,269 |
| |
| $27,043 |
| |
| $27,886 |
| |
| $28,008 |
|
| Provision charged to earnings | 500 |
| | 600 |
| | 450 |
| | 300 |
| | 400 |
|
| Charge-offs | (311 | ) | | (148 | ) | | (267 | ) | | (1,223 | ) | | (703 | ) |
| Recoveries | 66 |
| | 47 |
| | 43 |
| | 80 |
| | 181 |
|
| Balance at end of period |
| $28,023 |
| |
| $27,768 |
| |
| $27,269 |
| |
| $27,043 |
| |
| $27,886 |
|
| | | | | | | | | | |
| Net Loan Charge-Offs (Recoveries): | | | | | | | | | |
| Commercial mortgages |
| ($5 | ) | |
| ($7 | ) | |
| $26 |
| |
| $939 |
| |
| $309 |
|
| Commercial & industrial | 144 |
| | 63 |
| | 95 |
| | 170 |
| | 73 |
|
| Residential real estate mortgages | 45 |
| | (1 | ) | | 30 |
| | 7 |
| | 80 |
|
| Consumer | 61 |
| | 46 |
| | 73 |
| | 27 |
| | 60 |
|
| Total |
| $245 |
| |
| $101 |
| |
| $224 |
| |
| $1,143 |
| |
| $522 |
|
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 |
| | | December 31, 2014 | | September 30, 2014 | | December 31, 2013 |
| | | Average Balance | Interest | Yield/ Rate | | Average Balance | Interest | Yield/ Rate | | Average Balance | Interest | Yield/ Rate |
| (Dollars in thousands) | |
| Assets: | | | | | | | | | | | | |
| Commercial loans | |
| $1,470,360 |
|
| $15,688 |
| 4.23 | % | |
| $1,380,229 |
|
| $14,624 |
| 4.20 | % | |
| $1,310,584 |
|
| $14,944 |
| 4.52 | % |
| Residential real estate loans, including loans held for sale | | 1,009,382 |
| 10,329 |
| 4.06 | % | | 946,738 |
| 9,685 |
| 4.06 | % | | 771,272 |
| 7,947 |
| 4.09 | % |
| Consumer loans | | 338,050 |
| 3,231 |
| 3.79 | % | | 337,598 |
| 3,259 |
| 3.83 | % | | 323,778 |
| 3,078 |
| 3.77 | % |
| Total loans | | 2,817,792 |
| 29,248 |
| 4.12 | % | | 2,664,565 |
| 27,568 |
| 4.10 | % | | 2,405,634 |
| 25,969 |
| 4.28 | % |
| Cash, federal funds sold and short-term investments | | 63,736 |
| 29 |
| 0.18 | % | | 74,569 |
| 36 |
| 0.19 | % | | 104,718 |
| 59 |
| 0.22 | % |
| FHLBB stock | | 37,730 |
| 141 |
| 1.48 | % | | 37,730 |
| 140 |
| 1.47 | % | | 37,730 |
| 35 |
| 0.37 | % |
| Taxable debt securities | | 336,661 |
| 2,399 |
| 2.83 | % | | 323,140 |
| 2,397 |
| 2.94 | % | | 350,821 |
| 3,005 |
| 3.40 | % |
| Nontaxable debt securities | | 50,505 |
| 747 |
| 5.87 | % | | 53,374 |
| 789 |
| 5.86 | % | | 63,524 |
| 941 |
| 5.88 | % |
| Total securities | | 387,166 |
| 3,146 |
| 3.22 | % | | 376,514 |
| 3,186 |
| 3.36 | % | | 414,345 |
| 3,946 |
| 3.78 | % |
| Total interest-earning assets | | 3,306,424 |
| 32,564 |
| 3.91 | % | | 3,153,378 |
| 30,930 |
| 3.89 | % | | 2,962,427 |
| 30,009 |
| 4.02 | % |
| Noninterest-earning assets | | 215,079 |
| | | | 216,945 |
| | | | 200,615 |
| | |
| Total assets | |
| $3,521,503 |
| | | |
| $3,370,323 |
| | | |
| $3,163,042 |
| | |
| Liabilities and Shareholders' Equity: | | | | | | | | | | | | |
| Interest-bearing demand deposits | |
| $19,163 |
|
| $— |
| — | % | |
| $12,862 |
|
| $— |
| — | % | |
| $10,877 |
|
| $— |
| — | % |
| NOW accounts | | 320,313 |
| 49 |
| 0.06 | % | | 311,077 |
| 47 |
| 0.06 | % | | 300,113 |
| 48 |
| 0.06 | % |
| Money market accounts | | 829,472 |
| 903 |
| 0.43 | % | | 798,273 |
| 830 |
| 0.41 | % | | 653,731 |
| 560 |
| 0.34 | % |
| Savings accounts | | 291,683 |
| 45 |
| 0.06 | % | | 291,386 |
| 46 |
| 0.06 | % | | 293,434 |
| 47 |
| 0.06 | % |
| Time deposits (in-market) | | 602,005 |
| 1,735 |
| 1.14 | % | | 623,221 |
| 1,832 |
| 1.17 | % | | 698,653 |
| 2,115 |
| 1.20 | % |
| Wholesale brokered time deposits | | 257,415 |
| 799 |
| 1.23 | % | | 204,046 |
| 562 |
| 1.09 | % | | 104,326 |
| 296 |
| 1.13 | % |
| FHLBB advances | | 325,518 |
| 1,867 |
| 2.28 | % | | 283,219 |
| 1,832 |
| 2.57 | % | | 288,212 |
| 2,534 |
| 3.49 | % |
| Junior subordinated debentures | | 22,681 |
| 241 |
| 4.22 | % | | 22,681 |
| 241 |
| 4.22 | % | | 22,681 |
| 241 |
| 4.22 | % |
| Other | | 140 |
| 3 |
| 8.50 | % | | 151 |
| 3 |
| 7.88 | % | | 629 |
| 4 |
| 2.52 | % |
| Total interest-bearing liabilities | | 2,668,390 |
| 5,642 |
| 0.84 | % | | 2,546,916 |
| 5,393 |
| 0.84 | % | | 2,372,656 |
| 5,845 |
| 0.98 | % |
| Demand deposits | | 458,782 |
| | | | 439,353 |
| | | | 425,316 |
| | |
| Other liabilities | | 41,415 |
| | | | 37,217 |
| | | | 38,204 |
| | |
| Shareholders' equity | | 352,916 |
| | | | 346,837 |
| | | | 326,866 |
| | |
| Total liabilities and shareholders' equity | |
| $3,521,503 |
| | | |
| $3,370,323 |
| | | |
| $3,163,042 |
| | |
| Net interest income (FTE) | | |
| $26,922 |
| | | |
| $25,537 |
| | | |
| $24,164 |
| |
| Interest rate spread | | | | 3.07 | % | | | | 3.05 | % | | | | 3.04 | % |
| Net interest margin | | | | 3.23 | % | | | | 3.21 | % | | | | 3.24 | % |
Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:
|
| | | | | | | | | | | |
| (Dollars in thousands) | Three Months Ended |
| | Dec 31, 2014 | | Sep 30, 2014 | | Dec 31, 2013 |
| Commercial loans |
| $403 |
| |
| $329 |
| |
| $320 |
|
| Nontaxable debt securities | 256 |
| | 270 |
| | 323 |
|
| Total |
| $659 |
| |
| $599 |
| |
| $643 |
|
|
| | | | | | | | | | | | | | | | | | |
| |
| Washington Trust Bancorp, Inc. and Subsidiaries |
CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited) |
| | | Twelve Months Ended |
| | | December 31, 2014 | | December 31, 2013 |
| | | Average Balance | Interest | Yield/ Rate | | Average Balance | Interest | Yield/ Rate |
| (Dollars in thousands) | |
| Assets: | | | | | | | | |
| Commercial loans | |
| $1,382,036 |
|
| $59,421 |
| 4.30 | % | |
| $1,286,029 |
|
| $59,387 |
| 4.62 | % |
| Residential real estate loans, including loans held for sale | | 904,556 |
| 37,033 |
| 4.09 | % | | 767,450 |
| 31,752 |
| 4.14 | % |
| Consumer loans | | 334,368 |
| 12,758 |
| 3.82 | % | | 323,847 |
| 12,304 |
| 3.80 | % |
| Total loans | | 2,620,960 |
| 109,212 |
| 4.17 | % | | 2,377,326 |
| 103,443 |
| 4.35 | % |
| Cash, federal funds sold and short-term investments | | 65,045 |
| 128 |
| 0.20 | % | | 72,726 |
| 158 |
| 0.22 | % |
| FHLBB stock | | 37,730 |
| 561 |
| 1.49 | % | | 38,238 |
| 148 |
| 0.39 | % |
| Taxable debt securities | | 331,514 |
| 10,437 |
| 3.15 | % | | 316,440 |
| 11,008 |
| 3.48 | % |
| Nontaxable debt securities | | 55,283 |
| 3,267 |
| 5.91 | % | | 65,708 |
| 3,889 |
| 5.92 | % |
| Total securities | | 386,797 |
| 13,704 |
| 3.54 | % | | 382,148 |
| 14,897 |
| 3.90 | % |
| Total interest-earning assets | | 3,110,532 |
| 123,605 |
| 3.97 | % | | 2,870,438 |
| 118,646 |
| 4.13 | % |
| Noninterest-earning assets | | 210,746 |
| | | | 208,463 |
| | |
| Total assets | |
| $3,321,278 |
| | | |
| $3,078,901 |
| | |
| Liabilities and Shareholders' Equity: | | | | | | | | |
| Interest-bearing demand deposits | |
| $12,988 |
|
| $— |
| — | % | |
| $4,461 |
|
| $— |
| — | % |
| NOW accounts | | 311,927 |
| 190 |
| 0.06 | % | | 291,705 |
| 183 |
| 0.06 | % |
| Money market accounts | | 768,626 |
| 3,054 |
| 0.40 | % | | 569,534 |
| 1,749 |
| 0.31 | % |
| Savings accounts | | 291,880 |
| 182 |
| 0.06 | % | | 288,892 |
| 186 |
| 0.06 | % |
| Time deposits (in-market) | | 637,279 |
| 7,380 |
| 1.16 | % | | 728,328 |
| 9,144 |
| 1.26 | % |
| Wholesale brokered time deposits | | 187,325 |
| 2,131 |
| 1.14 | % | | 103,401 |
| 1,158 |
| 1.12 | % |
| FHLBB advances | | 274,879 |
| 7,698 |
| 2.80 | % | | 322,118 |
| 10,643 |
| 3.30 | % |
| Junior subordinated debentures | | 22,681 |
| 964 |
| 4.25 | % | | 27,398 |
| 1,484 |
| 5.42 | % |
| Other | | 157 |
| 13 |
| 8.28 | % | | 581 |
| 16 |
| 2.75 | % |
| Total interest-bearing liabilities | | 2,507,742 |
| 21,612 |
| 0.86 | % | | 2,336,418 |
| 24,563 |
| 1.05 | % |
| Demand deposits | | 432,857 |
| | | | 384,323 |
| | |
| Other liabilities | | 36,868 |
| | | | 47,961 |
| | |
| Shareholders' equity | | 343,811 |
| | | | 310,199 |
| | |
| Total liabilities and shareholders' equity | |
| $3,321,278 |
| | | |
| $3,078,901 |
| | |
| Net interest income (FTE) | | |
| $101,993 |
| | | |
| $94,083 |
| |
| Interest rate spread | | | | 3.11 | % | | | | 3.08 | % |
| Net interest margin | | | | 3.28 | % | | | | 3.28 | % |
Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:
|
| | | | | | | |
| (Dollars in thousands) | Twelve Months Ended |
| | Dec 31, 2014 | | Dec 31, 2013 |
| Commercial loans |
| $1,370 |
| |
| $962 |
|
| Nontaxable debt securities | 1,118 |
| | 1,336 |
|
| Total |
| $2,488 |
| |
| $2,298 |
|
|
| | | | | | | | | | | | | | | | | | | |
| 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) | Dec 31,
2014 | | Sep 30,
2014 | | Jun 30,
2014 | | Mar 31,
2014 | | Dec 31,
2013 |
| Calculation of Tangible Book Value per Share: | | | | | | | | | |
| Total shareholders' equity at end of period |
| $346,279 |
| |
| $348,562 |
| |
| $343,450 |
| |
| $335,858 |
| |
| $329,646 |
|
| Less: | | | | | | | | | |
| Goodwill | 58,114 |
| | 58,114 |
| | 58,114 |
| | 58,114 |
| | 58,114 |
|
| Identifiable intangible assets, net | 4,849 |
| | 5,004 |
| | 5,165 |
| | 5,329 |
| | 5,493 |
|
| Total tangible shareholders' equity at end of period |
| $283,316 |
| |
| $285,444 |
| |
| $280,171 |
| |
| $272,415 |
| |
| $266,039 |
|
| | | | | | | | | | |
| Shares outstanding at end of period | 16,746 |
| | 16,721 |
| | 16,705 |
| | 16,635 |
| | 16,614 |
|
| | | | | | | | | | |
| Book value per share - GAAP |
| $20.68 |
| |
| $20.85 |
| |
| $20.56 |
| |
| $20.19 |
| |
| $19.84 |
|
| Tangible book value per share - Non-GAAP |
| $16.92 |
| |
| $17.07 |
| |
| $16.77 |
| |
| $16.38 |
| |
| $16.01 |
|
| | | | | | | | | | |
| Calculation of Tangible Equity to Tangible Assets: | | | | | | | | | |
| Total tangible shareholders' equity at end of period |
| $283,316 |
| |
| $285,444 |
| |
| $280,171 |
| |
| $272,415 |
| |
| $266,039 |
|
| | | | | | | | | | |
| Total assets at end of period |
| $3,586,874 |
| |
| $3,415,882 |
| |
| $3,317,022 |
| |
| $3,194,146 |
| |
| $3,188,867 |
|
| Less: | | | | | | | | | |
| Goodwill | 58,114 |
| | 58,114 |
| | 58,114 |
| | 58,114 |
| | 58,114 |
|
| Identifiable intangible assets, net | 4,849 |
| | 5,004 |
| | 5,165 |
| | 5,329 |
| | 5,493 |
|
| Total tangible assets at end of period |
| $3,523,911 |
| |
| $3,352,764 |
| |
| $3,253,743 |
| |
| $3,130,703 |
| |
| $3,125,260 |
|
| | | | | | | | | | |
| Equity to assets - GAAP | 9.65 | % | | 10.20 | % | | 10.35 | % | | 10.51 | % | | 10.34 | % |
| Tangible equity to tangible assets - Non-GAAP | 8.04 | % | | 8.51 | % | | 8.61 | % | | 8.70 | % | | 8.51 | % |
| | | | | | | | | | |
| Calculation of Return on Average Tangible Assets: | | | | | | | | | |
| Net income |
| $11,191 |
| |
| $10,538 |
| |
| $9,797 |
| |
| $9,298 |
| |
| $9,789 |
|
| | | | | | | | | | |
| Total average assets |
| $3,521,503 |
| |
| $3,370,323 |
| |
| $3,214,649 |
| |
| $3,174,281 |
| |
| $3,163,042 |
|
| Less: | | | | | | | | | |
| Average goodwill | 58,114 |
| | 58,114 |
| | 58,114 |
| | 58,114 |
| | 58,114 |
|
| Average identifiable intangible assets, net | 4,924 |
| | 5,082 |
| | 5,245 |
| | 5,410 |
| | 5,573 |
|
| Total average tangible assets |
| $3,458,465 |
| |
| $3,307,127 |
| |
| $3,151,290 |
| |
| $3,110,757 |
| |
| $3,099,355 |
|
| | | | | | | | | | |
| Return on average assets - GAAP | 1.27 | % | | 1.25 | % | | 1.22 | % | | 1.17 | % | | 1.24 | % |
| Return on average tangible assets - Non-GAAP | 1.29 | % | | 1.27 | % | | 1.24 | % | | 1.20 | % | | 1.26 | % |
| | | | | | | | | | |
| Calculation of Return on Average Tangible Equity: | | | | | | | | | |
| Net income |
| $11,191 |
| |
| $10,538 |
| |
| $9,797 |
| |
| $9,298 |
| |
| $9,789 |
|
| | | | | | | | | | |
| Total average shareholders' equity |
| $352,916 |
| |
| $346,837 |
| |
| $340,235 |
| |
| $335,029 |
| |
| $326,866 |
|
| Less: | | | | | | | | | |
| Average goodwill | 58,114 |
| | 58,114 |
| | 58,114 |
| | 58,114 |
| | 58,114 |
|
| Average identifiable intangible assets, net | 4,924 |
| | 5,082 |
| | 5,245 |
| | 5,410 |
| | 5,573 |
|
| Total average tangible shareholders' equity |
| $289,878 |
| |
| $283,641 |
| |
| $276,876 |
| |
| $271,505 |
| |
| $263,179 |
|
| | | | | | | | | | |
| Return on average shareholders' equity - GAAP | 12.68 | % | | 12.15 | % | | 11.52 | % | | 11.10 | % | | 11.98 | % |
| Return on average tangible shareholders' equity - Non-GAAP | 15.44 | % | | 14.86 | % | | 14.15 | % | | 13.70 | % | | 14.80 | % |
|
| | | | | | | |
| Washington Trust Bancorp, Inc. and Subsidiaries |
SUPPLEMENTAL INFORMATION - Non-GAAP Financial Measures (unaudited) |
| | |
| | Twelve Months Ended |
| (Dollars in thousands) | Dec 31,
2014 | | Dec 31,
2013 |
| Calculation of return on average tangible assets: | | | |
| Net income |
| $40,824 |
| |
| $36,153 |
|
| | | | |
| Total average assets |
| $3,321,278 |
| |
| $3,078,901 |
|
| Less: | | | |
| Average goodwill | 58,114 |
| | 58,114 |
|
| Average identifiable intangible assets, net | 5,164 |
| | 5,826 |
|
| Total average tangible assets |
| $3,258,000 |
| |
| $3,014,961 |
|
| | | | |
| Return on average assets - GAAP | 1.23 | % | | 1.17 | % |
| Return on average tangible assets - Non-GAAP | 1.25 | % | | 1.20 | % |
| | | | |
| | | | |
| Calculation of return on average tangible equity: | | | |
| Net income |
| $40,824 |
| |
| $36,153 |
|
| | | | |
| Total average shareholders' equity |
| $343,811 |
| |
| $310,199 |
|
| Less: | | | |
| Average goodwill | 58,114 |
| | 58,114 |
|
| Average identifiable intangible assets, net | 5,164 |
| | 5,826 |
|
| Total average tangible shareholders' equity |
| $280,533 |
| |
| $246,259 |
|
| | | | |
| Return on average shareholders' equity - GAAP | 11.87 | % | | 11.65 | % |
| Return on average tangible shareholders' equity - Non-GAAP | 14.55 | % | | 14.68 | % |
