NASDAQ: WASH
Contact: Elizabeth B. Eckel
Senior Vice President, Marketing
Telephone: (401) 348-1309
E-mail: ebeckel@washtrust.com
Date: July 24, 2017
FOR IMMEDIATE RELEASE
Washington Trust Reports Record Second Quarter 2017 Earnings
WESTERLY, R.I., July 24, 2017 (GLOBE NEWSWIRE)…Washington Trust Bancorp, Inc. (Nasdaq:WASH), parent company of The Washington Trust Company, today announced second quarter 2017 net income of $13.2 million, or $0.76 per diluted share, up by 12% from the $11.8 million, or $0.68 per diluted share, reported for the first quarter of 2017.
“Washington Trust’s momentum continued into the second quarter of 2017, as we achieved record earnings,” stated Joseph J. MarcAurele, Washington Trust Chairman and Chief Executive Officer. “As a result of our consistent performance, strong capital position and attractive dividend yield, we continue to be recognized as one of the region’s high-performing financial institutions.”
Selected highlights for the second quarter of 2017 include:
| |
| • | Returns on average equity and average assets were strong at 13.06% and 1.21%, respectively. Comparable amounts for the first quarter of 2017 were 11.87% and 1.08%, respectively. |
| |
| • | Wealth management assets under administration at the end of the quarter totaled $6.4 billion and second quarter revenues amounted to $9.9 million. These were record highs for Washington Trust. |
| |
| • | Mortgage banking revenues totaled $2.9 million for the second quarter of 2017, up by 25% on a linked quarter basis. |
| |
| • | Total loans stood at $3.2 billion at June 30, 2017, down by 1% from the preceding quarter and up by 4% from a year ago. |
| |
| • | Total deposits amounted to $3.0 billion at June 30, 2017, down by 3% in the quarter and up by 8% from a year ago. |
Net Interest Income
Net interest income totaled $29.9 million for the second quarter of 2017, up by $1.2 million, or 4%, from the first quarter. Included in net interest income in the second quarter was loan prepayment fee income of $549 thousand, compared to $135 thousand in the first quarter. Excluding the impact of loan prepayment fee income in each period, net interest income was up by $811 thousand, or 3%, on a linked quarter basis. The net interest margin was 2.97% for the second quarter of 2017, up by 10 basis points from the preceding quarter. Excluding the impact of the loan prepayment fee income in each period, the net interest margin was 2.92%, up by 6 basis points from the first quarter of 2017. Significant linked quarter changes included:
| |
| • | Average interest-earning assets decreased by $17 million, primarily due to payoffs in the commercial real estate loan portfolio. The yield on interest-earning assets for the second quarter was 3.68%, up by 12 basis points from the preceding quarter. Excluding the impact of loan prepayment fee income in each period, the yield on interest-earning assets was 3.62%, up by 8 basis points from the preceding quarter, due to higher short-term market rates of interest. |
Washington Trust
Page 2, July 24, 2017
| |
| • | Average interest-bearing liabilities decreased by $39 million, reflecting declines in both in-market interest-bearing deposits and wholesale funding balances. The cost of interest-bearing funds was 0.87%, up by 4 basis points from the preceding quarter. |
Loans
Total loans amounted to $3.2 billion at June 30, 2017, down by $25 million, or 1%, from the end of preceding quarter. Commercial loans decreased by $64 million, or 4%, on a linked quarter basis, with a $79 million decline in the commercial real estate portfolio resulting from payoffs and a $15 million increase in the commercial and industrial loan portfolio. Residential loan portfolio balances increased by $37 million, or 3%, from the balance at March 31, 2017. The consumer loan portfolio increased by $2 million, or 1%, from the end of the preceding quarter.
Investment Securities
The investment securities portfolio amounted to $763 million at June 30, 2017, down by $6 million, or 1%, from the balance at March 31, 2017. Investment securities represented 17% of total assets as of June 30, 2017.
Deposits and Borrowings
Total deposits amounted to $3.0 billion at June 30, 2017, down by $94 million, or 3%, from the balance at March 31, 2017. Included in total deposits were wholesale brokered time deposit balances of $401 million, which increased by $19 million from the end of preceding quarter. Excluding wholesale brokered time deposits, in-market deposits decreased by $113 million, or 4%, in the quarter, reflecting seasonal outflows of various institutional and governmental depositors based on the their underlying business cycles.
FHLBB advances amounted to $870 million at June 30, 2017, up by $71 million from the balance at March 31, 2017.
Noninterest Income
Noninterest income totaled $16.8 million for the second quarter of 2017, up by $2.3 million, or 16%, from the preceding quarter. Significant linked quarter changes included:
| |
| • | Wealth management revenues increased by $465 thousand, or 5%. This included increases of $154 thousand in asset-based revenues and $311 thousand in transaction-based revenues. The increase in transaction-based revenues was largely attributable to tax preparation fees, which are generally concentrated in the second quarter. |
Wealth management assets under administration increased by $160 million, reflecting financial market appreciation in the second quarter. Managed assets represented 93% of total wealth management assets at June 30, 2017.
| |
| • | Mortgage banking revenues increased by $579 thousand, or 25%, resulting from an increase of residential mortgage loans sold in the secondary market. Residential mortgage loans sold to the secondary market amounted to $137 million in the second quarter, compared to $107 million in the preceding quarter. |
| |
| • | Loan related derivative income increased by $996 thousand from the $148 thousand reported for the first quarter, due to higher volume of commercial borrower loan related derivative transactions occurring in the second quarter. |
Washington Trust
Page 3, July 24, 2017
Noninterest Expenses
Noninterest expenses totaled $26.3 million for the second quarter of 2017, up by $1.0 million, or 4%, from the first quarter. Included in the first quarter was a $310 thousand reduction in noninterest expenses resulting from the downward adjustment in the fair value of the contingent consideration liability initially recognized upon the completion of a 2015 acquisition. Excluding this first quarter adjustment, noninterest expenses were up by $710 thousand, or 3%, on a linked quarter basis. Salaries and employee benefit costs, the largest component of noninterest expenses, increased by $563 thousand, or 3%, from the preceding quarter, reflecting an increase in commissions expense due to an increase in mortgage banking activities. The linked quarter change in noninterest expenses also included a $253 thousand increase in outsourced services, which was primarily due to higher volume of loan related derivative transaction execution costs.
Income tax expense amounted to $6.5 million for the second quarter of 2017, up by $784 thousand from the preceding quarter. The effective tax rate for the second quarter of 2017 was 33.0%, compared to 32.7% for the first quarter of 2017. Excess tax benefits on the settlement of share-based awards, which are recorded as a reduction to income tax expense, totaled $155 thousand for the second quarter, compared to $195 thousand in the preceding quarter. Excluding the impact of the excess tax benefits recognized in each period, the effective tax rate was 33.8% for the second quarter of 2017, unchanged from the first quarter. Prior to 2017, excess tax benefits on the settlement of share-based awards were recognized as additional paid in capital in shareholders' equity and did not impact income tax expense or the effective tax rate.
Asset Quality
Total past due loans amounted to $21.1 million, or 0.66% of total loans, at June 30, 2017, compared to $20.9 million, or 0.65% of total loans, at March 31, 2017. Total nonaccrual loans amounted to $20.2 million, or 0.63% of total loans, at June 30, 2017, down from $22.1 million, or 0.69% of total loans, at March 31, 2017.
A loan loss provision totaling $700 thousand was charged to earnings in the second quarter of 2017, compared to a loan loss provision of $400 thousand in the preceding quarter. The loan loss provision was based on management's assessment of loss exposure, as well as loan loss allocations commensurate with changes in the loan portfolio during the quarter. Net charge-offs amounted to $484 thousand in the second quarter of 2017, including a $400 thousand charge-off associated with one commercial real estate relationship. The allowance for loan losses was $26.7 million, or 0.83% of total loans, at June 30, 2017, compared to $26.4 million, or 0.82% of total loans, at March 31, 2017.
Capital and Dividends
Total shareholders' equity was $406 million at June 30, 2017, up by $8 million from March 31, 2017. Capital levels at June 30, 2017 exceeded the regulatory minimum levels to be considered well capitalized, with a total risk-based capital ratio of 12.78% at June 30, 2017, compared to 12.38% at March 31, 2017. Book value per share amounted to $23.59 at June 30, 2017, up from $23.14 at March 31, 2017.
The Board of Directors declared a quarterly dividend of 38 cents per share for the quarter ended June 30, 2017. The dividend was paid on July 14, 2017 to shareholders of record on July 3, 2017.
Washington Trust
Page 4, July 24, 2017
Conference Call
Washington Trust will host a conference call to discuss its second quarter results, business highlights and outlook on Tuesday, July 25, 2017 at 8:30 a.m. (Eastern Time). Individuals may dial in to the call at 1-877-407-9208. An audio replay of the call will be available, shortly after the conclusion of the call, by dialing 1-844-512-2921 and entering the Replay PIN Number 13665498; the audio replay will be available through August 4, 2017. 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 September 30, 2017.
Background
Washington Trust Bancorp, Inc. is the parent of The Washington Trust Company. Founded in 1800, Washington Trust is the oldest community bank in the nation, the largest state-chartered bank headquartered in Rhode Island and one of the Northeast's premier financial services companies. Washington Trust offers a full range of financial services, including commercial banking, mortgage 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 under the symbol WASH. Investor information is available on the Corporation’s web site at www.washtrustbancorp.com.
Forward-Looking Statements
This press release contains statements that are “forward-looking statements”. We may also make 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 international economic conditions or conditions affecting the banking or financial services industries or financial capital markets; volatility in national and international financial markets; reductions in net interest income resulting from interest rate volatility as well as changes in the balance and mix of loans and deposits; reductions in the market value of wealth management assets under administration; 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 the our competition; changes in legislation or regulation and accounting principles, policies and guidelines; increasing occurrences of cyberattacks, hacking and identity theft; and changes in the assumptions used in making such forward-looking statements. In addition, the factors described under “Risk Factors” in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2016, as updated by our Quarterly Reports on Form 10-Q and other filings submitted to the SEC, 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 report, 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.
|
| | | | | | | | | | | | | | | |
| Washington Trust Bancorp, Inc. and Subsidiaries |
| CONSOLIDATED BALANCE SHEETS |
| (Unaudited; Dollars in thousands) |
| | | | | | |
| | Jun 30,
2017 | Mar 31,
2017 | Dec 31,
2016 | Sep 30,
2016 | Jun 30,
2016 |
| Assets: | | | | | |
| Cash and due from banks |
| $117,608 |
|
| $111,941 |
|
| $106,185 |
|
| $126,752 |
|
| $116,658 |
|
| Short-term investments | 2,324 |
| 2,039 |
| 1,612 |
| 2,420 |
| 3,255 |
|
| Mortgage loans held for sale | 32,784 |
| 25,414 |
| 29,434 |
| 45,162 |
| 38,554 |
|
| Securities: | | | | | |
| Available for sale, at fair value | 749,486 |
| 754,720 |
| 739,912 |
| 564,256 |
| 401,749 |
|
| Held to maturity, at amortized cost | 13,942 |
| 14,721 |
| 15,633 |
| 16,848 |
| 17,917 |
|
| Total securities | 763,428 |
| 769,441 |
| 755,545 |
| 581,104 |
| 419,666 |
|
| Federal Home Loan Bank stock, at cost | 44,640 |
| 43,714 |
| 43,129 |
| 37,249 |
| 34,303 |
|
| Loans: | | | | | |
| Commercial | 1,698,389 |
| 1,762,499 |
| 1,771,666 |
| 1,757,215 |
| 1,732,220 |
|
| Residential real estate | 1,168,105 |
| 1,131,210 |
| 1,122,748 |
| 1,079,887 |
| 1,005,036 |
|
| Consumer | 333,606 |
| 331,151 |
| 339,957 |
| 344,253 |
| 343,628 |
|
| Total loans | 3,200,100 |
| 3,224,860 |
| 3,234,371 |
| 3,181,355 |
| 3,080,884 |
|
| Less allowance for loan losses | 26,662 |
| 26,446 |
| 26,004 |
| 25,649 |
| 25,826 |
|
| Net loans | 3,173,438 |
| 3,198,414 |
| 3,208,367 |
| 3,155,706 |
| 3,055,058 |
|
| Premises and equipment, net | 28,508 |
| 28,853 |
| 29,020 |
| 29,433 |
| 29,590 |
|
| Investment in bank-owned life insurance | 72,183 |
| 71,642 |
| 71,105 |
| 70,557 |
| 65,036 |
|
| Goodwill | 63,909 |
| 64,059 |
| 64,059 |
| 64,059 |
| 64,059 |
|
| Identifiable intangible assets, net | 9,642 |
| 9,898 |
| 10,175 |
| 10,493 |
| 10,814 |
|
| Other assets | 67,065 |
| 63,348 |
| 62,484 |
| 81,099 |
| 80,088 |
|
| Total assets |
| $4,375,529 |
|
| $4,388,763 |
|
| $4,381,115 |
|
| $4,204,034 |
|
| $3,917,081 |
|
| Liabilities: | | | | | |
| Deposits: | | | | | |
| Demand deposits |
| $587,813 |
|
| $596,974 |
|
| $585,960 |
|
| $566,027 |
|
| $512,307 |
|
| NOW accounts | 448,617 |
| 454,344 |
| 427,707 |
| 404,827 |
| 414,532 |
|
| Money market accounts | 666,047 |
| 762,233 |
| 730,075 |
| 794,905 |
| 675,896 |
|
| Savings accounts | 364,002 |
| 362,281 |
| 358,397 |
| 357,966 |
| 342,579 |
|
| Time deposits | 954,710 |
| 939,739 |
| 961,613 |
| 913,649 |
| 844,036 |
|
| Total deposits | 3,021,189 |
| 3,115,571 |
| 3,063,752 |
| 3,037,374 |
| 2,789,350 |
|
| Federal Home Loan Bank advances | 869,733 |
| 798,741 |
| 848,930 |
| 671,615 |
| 640,010 |
|
| Junior subordinated debentures | 22,681 |
| 22,681 |
| 22,681 |
| 22,681 |
| 22,681 |
|
| Other liabilities | 55,884 |
| 53,985 |
| 54,948 |
| 77,037 |
| 76,708 |
|
| Total liabilities | 3,969,487 |
| 3,990,978 |
| 3,990,311 |
| 3,808,707 |
| 3,528,749 |
|
| Shareholders’ Equity: | | | | | |
| Common stock | 1,076 |
| 1,075 |
| 1,073 |
| 1,069 |
| 1,068 |
|
| Paid-in capital | 116,484 |
| 116,200 |
| 115,123 |
| 113,290 |
| 112,314 |
|
| Retained earnings | 306,151 |
| 299,555 |
| 294,365 |
| 288,613 |
| 282,666 |
|
| Accumulated other comprehensive loss | (17,669 | ) | (19,045 | ) | (19,757 | ) | (7,645 | ) | (7,716 | ) |
| Total shareholders’ equity | 406,042 |
| 397,785 |
| 390,804 |
| 395,327 |
| 388,332 |
|
| Total liabilities and shareholders’ equity |
| $4,375,529 |
|
| $4,388,763 |
|
| $4,381,115 |
|
| $4,204,034 |
|
| $3,917,081 |
|
|
| | | | | | | | | | | | | | | | | | | | | | |
| CONSOLIDATED STATEMENTS OF INCOME |
| (Unaudited; Dollars in thousands, except per share amounts) |
| | | | | | | | For the Six Months Ended |
| | For the Three Months Ended | |
| | Jun 30,
2017 | Mar 31,
2017 | Dec 31,
2016 | Sep 30,
2016 | Jun 30,
2016 | | Jun 30,
2017 | Jun 30,
2016 |
| Interest income: | | | | | | | | |
| Interest and fees on loans |
| $31,642 |
|
| $30,352 |
|
| $30,738 |
|
| $29,633 |
|
| $29,122 |
| |
| $61,994 |
|
| $59,120 |
|
| Taxable interest on securities | 4,844 |
| 4,709 |
| 3,703 |
| 3,024 |
| 2,487 |
| | 9,553 |
| 4,857 |
|
| Nontaxable interest on securities | 72 |
| 112 |
| 157 |
| 218 |
| 280 |
| | 184 |
| 607 |
|
| Dividends on Federal Home Loan Bank stock | 439 |
| 387 |
| 362 |
| 288 |
| 231 |
| | 826 |
| 441 |
|
| Other interest income | 156 |
| 104 |
| 95 |
| 93 |
| 70 |
| | 260 |
| 134 |
|
| Total interest and dividend income | 37,153 |
| 35,664 |
| 35,055 |
| 33,256 |
| 32,190 |
| | 72,817 |
| 65,159 |
|
| Interest expense: |
|
| | | | | | | |
| Deposits | 3,591 |
| 3,502 |
| 3,445 |
| 3,110 |
| 2,981 |
| | 7,093 |
| 5,949 |
|
| Federal Home Loan Bank advances | 3,509 |
| 3,344 |
| 2,886 |
| 2,641 |
| 2,313 |
| | 6,853 |
| 4,465 |
|
| Junior subordinated debentures | 149 |
| 138 |
| 135 |
| 125 |
| 119 |
| | 287 |
| 231 |
|
| Other interest expense | — |
| 1 |
| 1 |
| 1 |
| 1 |
| | 1 |
| 3 |
|
| Total interest expense | 7,249 |
| 6,985 |
| 6,467 |
| 5,877 |
| 5,414 |
| | 14,234 |
| 10,648 |
|
| Net interest income | 29,904 |
| 28,679 |
| 28,588 |
| 27,379 |
| 26,776 |
| | 58,583 |
| 54,511 |
|
| Provision for loan losses | 700 |
| 400 |
| 2,900 |
| 1,800 |
| 450 |
| | 1,100 |
| 950 |
|
| Net interest income after provision for loan losses | 29,204 |
| 28,279 |
| 25,688 |
| 25,579 |
| 26,326 |
| | 57,483 |
| 53,561 |
|
| Noninterest income: |
|
| |
|
|
|
|
|
| | | |
| Wealth management revenues | 9,942 |
| 9,477 |
| 9,291 |
| 9,623 |
| 9,481 |
| | 19,419 |
| 18,655 |
|
| Mortgage banking revenues | 2,919 |
| 2,340 |
| 4,541 |
| 3,734 |
| 2,710 |
| | 5,259 |
| 4,908 |
|
| Service charges on deposit accounts | 901 |
| 883 |
| 945 |
| 915 |
| 935 |
| | 1,784 |
| 1,842 |
|
| Card interchange fees | 902 |
| 802 |
| 858 |
| 870 |
| 860 |
| | 1,704 |
| 1,657 |
|
| Income from bank-owned life insurance | 542 |
| 536 |
| 549 |
| 521 |
| 1,090 |
| | 1,078 |
| 1,589 |
|
| Loan related derivative income | 1,144 |
| 148 |
| 912 |
| 1,178 |
| 508 |
| | 1,292 |
| 1,153 |
|
| Equity in losses of unconsolidated subsidiaries | (89 | ) | (88 | ) | (89 | ) | (88 | ) | (89 | ) | | (177 | ) | (177 | ) |
| Other income | 545 |
| 412 |
| 313 |
| 508 |
| 419 |
| | 957 |
| 921 |
|
| Total noninterest income | 16,806 |
| 14,510 |
| 17,320 |
| 17,261 |
| 15,914 |
| | 31,316 |
| 30,548 |
|
| Noninterest expense: |
|
| |
|
|
|
|
|
| | | |
| Salaries and employee benefits | 17,358 |
| 16,795 |
| 16,528 |
| 16,908 |
| 17,405 |
| | 34,153 |
| 33,785 |
|
| Net occupancy | 1,767 |
| 1,967 |
| 1,775 |
| 1,766 |
| 1,803 |
| | 3,734 |
| 3,610 |
|
| Equipment | 1,313 |
| 1,467 |
| 1,556 |
| 1,648 |
| 1,503 |
| | 2,780 |
| 3,004 |
|
| Outsourced services | 1,710 |
| 1,457 |
| 1,311 |
| 1,254 |
| 1,294 |
| | 3,167 |
| 2,657 |
|
| Legal, audit and professional fees | 582 |
| 616 |
| 597 |
| 691 |
| 662 |
| | 1,198 |
| 1,291 |
|
| FDIC deposit insurance costs | 469 |
| 481 |
| 390 |
| 504 |
| 491 |
| | 950 |
| 984 |
|
| Advertising and promotion | 362 |
| 237 |
| 403 |
| 370 |
| 420 |
| | 599 |
| 685 |
|
| Amortization of intangibles | 257 |
| 277 |
| 318 |
| 321 |
| 322 |
| | 534 |
| 645 |
|
| Debt prepayment penalties | — |
| — |
| — |
| — |
| — |
| | — |
| 431 |
|
| Change in fair value of contingent consideration | — |
| (310 | ) | — |
| (939 | ) | 16 |
| | (310 | ) | 41 |
|
| Other expenses | 2,488 |
| 2,299 |
| 2,095 |
| 2,127 |
| 2,114 |
| | 4,787 |
| 4,347 |
|
| Total noninterest expense | 26,306 |
| 25,286 |
| 24,973 |
| 24,650 |
| 26,030 |
| | 51,592 |
| 51,480 |
|
| Income before income taxes | 19,704 |
| 17,503 |
| 18,035 |
| 18,190 |
| 16,210 |
| | 37,207 |
| 32,629 |
|
| Income tax expense | 6,505 |
| 5,721 |
| 5,873 |
| 5,863 |
| 5,153 |
| | 12,226 |
| 10,637 |
|
| Net income |
| $13,199 |
|
| $11,782 |
|
| $12,162 |
|
| $12,327 |
|
| $11,057 |
| |
| $24,981 |
|
| $21,992 |
|
| | | | | | | | | |
| Net income available to common shareholders: | | | | | | | | |
| Basic |
| $13,170 |
|
| $11,755 |
|
| $12,137 |
|
| $12,302 |
|
| $11,035 |
| |
| $24,925 |
|
| $21,945 |
|
| Diluted |
| $13,170 |
|
| $11,755 |
|
| $12,137 |
|
| $12,302 |
|
| $11,035 |
| |
| $24,925 |
|
| $21,945 |
|
| Weighted average common shares outstanding: | | | | | | | | |
| Basic | 17,206 |
| 17,186 |
| 17,142 |
| 17,090 |
| 17,067 |
| | 17,196 |
| 17,045 |
|
| Diluted | 17,316 |
| 17,293 |
| 17,245 |
| 17,203 |
| 17,194 |
| | 17,312 |
| 17,185 |
|
| Earnings per common share: | | | | | | | | |
| Basic |
| $0.77 |
|
| $0.68 |
|
| $0.71 |
|
| $0.72 |
|
| $0.65 |
| |
| $1.45 |
|
| $1.29 |
|
| Diluted |
| $0.76 |
|
| $0.68 |
|
| $0.70 |
|
| $0.72 |
|
| $0.64 |
| |
| $1.44 |
|
| $1.28 |
|
| | | | | | | | | |
| Cash dividends declared per share |
| $0.38 |
|
| $0.38 |
|
| $0.37 |
|
| $0.37 |
|
| $0.36 |
| |
| $0.76 |
|
| $0.72 |
|
|
| | | | | | | | | | | | | | | |
| SELECTED FINANCIAL HIGHLIGHTS |
| (Unaudited; Dollars in thousands, except per share amounts) |
| | |
| Jun 30,
2017 | Mar 31,
2017 | Dec 31,
2016 | Sep 30,
2016 | Jun 30,
2016 |
| Share and Equity Related Data: | | | | | |
| Book value per share |
| $23.59 |
|
| $23.14 |
|
| $22.76 |
|
| $23.11 |
|
| $22.73 |
|
Tangible book value per share - Non-GAAP (1) |
| $19.32 |
|
| $18.83 |
|
| $18.44 |
|
| $18.75 |
|
| $18.35 |
|
| Market value per share |
| $51.55 |
|
| $49.30 |
|
| $56.05 |
|
| $40.22 |
|
| $37.92 |
|
| Shares issued and outstanding at end of period | 17,210 |
| 17,193 |
| 17,171 |
| 17,107 |
| 17,081 |
|
| | | | | | |
| Capital Ratios: | | | | | |
| Tier 1 risk-based capital | 11.92% (i) |
| 11.54 | % | 11.44 | % | 11.48 | % | 11.57 | % |
| Total risk-based capital | 12.78% (i) |
| 12.38 | % | 12.26 | % | 12.31 | % | 12.43 | % |
| Tier 1 leverage ratio | 8.78% (i) |
| 8.58 | % | 8.67 | % | 8.95 | % | 9.21 | % |
| Common equity tier 1 | 11.23% (i) |
| 10.86 | % | 10.75 | % | 10.77 | % | 10.84 | % |
| Equity to assets | 9.28 | % | 9.06 | % | 8.92 | % | 9.40 | % | 9.91 | % |
Tangible equity to tangible assets - Non-GAAP (1) | 7.73 | % | 7.51 | % | 7.35 | % | 7.77 | % | 8.16 | % |
(i) - estimated | | | | | |
|
| | | | | | | | | | | | | | | |
| | | | For the Six Months Ended |
| | For the Three Months Ended | |
| | Jun 30,
2017 | Mar 31,
2017 | Dec 31,
2016 | Sep 30,
2016 | Jun 30,
2016 | | Jun 30,
2017 | Jun 30,
2016 |
| Performance Ratios: | | | | | | | | |
| Net interest margin (FTE) | 2.97 | % | 2.87 | % | 2.89 | % | 2.94 | % | 3.05 | % | | 2.92 | % | 3.15 | % |
| Return on average assets | 1.21 | % | 1.08 | % | 1.14 | % | 1.21 | % | 1.14 | % | | 1.15 | % | 1.15 | % |
Return on average tangible assets - Non-GAAP (1) | 1.23 | % | 1.10 | % | 1.16 | % | 1.24 | % | 1.17 | % | | 1.17 | % | 1.17 | % |
| Return on average equity | 13.06 | % | 11.87 | % | 12.26 | % | 12.57 | % | 11.50 | % | | 12.47 | % | 11.50 | % |
Return on average tangible equity - Non-GAAP (1) | 15.98 | % | 14.59 | % | 15.09 | % | 15.53 | % | 14.28 | % | | 15.29 | % | 14.31 | % |
| |
| (1) | See the section labeled “SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures” at the end of this document. |
|
| | | | | | | | | | | | | | | | | | | | | | |
| SELECTED FINANCIAL HIGHLIGHTS |
| (Unaudited; Dollars in thousands) |
| | | | For the Six Months Ended |
| | For the Three Months Ended | |
| | Jun 30,
2017 | Mar 31,
2017 | Dec 31,
2016 | Sep 30,
2016 | Jun 30,
2016 | | Jun 30,
2017 | Jun 30,
2016 |
| Wealth Management Results | | | | | | | | |
| Wealth Management Revenues: | | | | | | | | |
| Trust and investment management fees |
| $8,781 |
|
| $8,518 |
|
| $8,283 |
|
| $8,358 |
|
| $8,195 |
| |
| $17,299 |
|
| $16,260 |
|
| Mutual fund fees | 620 |
| 729 |
| 771 |
| 812 |
| 812 |
| | 1,349 |
| 1,655 |
|
| Asset-based revenues | 9,401 |
| 9,247 |
| 9,054 |
| 9,170 |
| 9,007 |
| | 18,648 |
| 17,915 |
|
| Transaction-based revenues | 541 |
| 230 |
| 237 |
| 453 |
| 474 |
| | 771 |
| 740 |
|
| Total wealth management revenues |
| $9,942 |
|
| $9,477 |
|
| $9,291 |
|
| $9,623 |
|
| $9,481 |
| |
| $19,419 |
|
| $18,655 |
|
| | | | | | | | | |
| Assets Under Administration: | | | | | | | | |
| Balance at beginning of period |
| $6,243,301 |
|
| $6,063,293 |
|
| $6,056,859 |
|
| $5,905,019 |
|
| $5,878,967 |
| |
| $6,063,293 |
|
| $5,844,636 |
|
| Net investment appreciation (depreciation) & income | 162,924 |
| 220,423 |
| (8,506 | ) | 192,518 |
| 71,447 |
| | 383,347 |
| 93,835 |
|
| Net client asset flows | (2,724 | ) | (40,415 | ) | 14,940 |
| (40,678 | ) | (45,395 | ) | | (43,139 | ) | (33,452 | ) |
| Balance at end of period |
| $6,403,501 |
|
| $6,243,301 |
|
| $6,063,293 |
|
| $6,056,859 |
|
| $5,905,019 |
| |
| $6,403,501 |
|
| $5,905,019 |
|
| | | | | | | | | |
| Mortgage Banking Results | | | | | | | | |
| Mortgage Banking Revenues: | | | | | | | | |
| Gains & commissions on loan sales, net |
| $2,784 |
|
| $2,268 |
|
| $4,455 |
|
| $3,744 |
|
| $2,804 |
| |
| $5,052 |
|
| $4,938 |
|
| Residential mortgage servicing fee income, net | 135 |
| 72 |
| 86 |
| (10 | ) | (94 | ) | | 207 |
| (30 | ) |
| Total mortgage banking revenues |
| $2,919 |
|
| $2,340 |
|
| $4,541 |
|
| $3,734 |
|
| $2,710 |
| |
| $5,259 |
|
| $4,908 |
|
| | | | | | | | | |
| Residential Mortgage Loan Originations: | | | | | | | | |
| Originations for retention in portfolio |
| $94,794 |
|
| $57,907 |
|
| $72,533 |
|
| $90,308 |
|
| $54,080 |
| |
| $152,701 |
|
| $101,626 |
|
| Originations for sale to secondary market (1) | 144,491 |
| 102,441 |
| 185,626 |
| 170,673 |
| 154,043 |
| | 246,932 |
| 244,501 |
|
| Total mortgage loan originations |
| $239,285 |
|
| $160,348 |
|
| $258,159 |
|
| $260,981 |
|
| $208,123 |
| |
| $399,633 |
|
| $346,127 |
|
| | | | | | | | | |
| Residential Mortgage Loans Sold: | | | | | | | | |
| Sold with servicing rights retained |
| $29,198 |
|
| $22,567 |
|
| $48,545 |
|
| $44,611 |
|
| $45,804 |
| |
| $51,766 |
|
| $72,258 |
|
| Sold with servicing rights released (1) | 108,246 |
| 84,345 |
| 151,506 |
| 119,572 |
| 93,239 |
| | 192,590 |
| 172,746 |
|
| Total mortgage loans sold |
| $137,444 |
|
| $106,912 |
|
| $200,051 |
|
| $164,183 |
|
| $139,043 |
| |
| $244,356 |
|
| $245,004 |
|
| |
| (1) | Also includes loans originated in a broker capacity. |
|
| | | | | | | | | | | | | | | |
| END OF PERIOD LOAN AND DEPOSIT COMPOSITION |
| (Unaudited; Dollars in thousands) |
| | |
| | Jun 30,
2017 | Mar 31,
2017 | Dec 31,
2016 | Sep 30,
2016 | Jun 30,
2016 |
| Commercial: | | | | | |
| Mortgages |
| $1,009,096 |
|
| $1,076,648 |
|
| $1,074,186 |
|
| $1,086,175 |
|
| $1,074,747 |
|
| Construction & development | 112,177 |
| 123,841 |
| 121,371 |
| 98,735 |
| 81,812 |
|
| Commercial & industrial | 577,116 |
| 562,010 |
| 576,109 |
| 572,305 |
| 575,661 |
|
| Total commercial | 1,698,389 |
| 1,762,499 |
| 1,771,666 |
| 1,757,215 |
| 1,732,220 |
|
| Residential Real Estate: | | | | | |
| Mortgages | 1,143,416 |
| 1,100,435 |
| 1,094,824 |
| 1,052,829 |
| 978,399 |
|
| Homeowner construction | 24,689 |
| 30,775 |
| 27,924 |
| 27,058 |
| 26,637 |
|
| Total residential real estate | 1,168,105 |
| 1,131,210 |
| 1,122,748 |
| 1,079,887 |
| 1,005,036 |
|
| Consumer: | | | | | |
| Home equity lines | 263,934 |
| 258,695 |
| 264,200 |
| 265,238 |
| 260,541 |
|
| Home equity loans | 35,173 |
| 36,050 |
| 37,272 |
| 38,264 |
| 39,572 |
|
| Other | 34,499 |
| 36,406 |
| 38,485 |
| 40,751 |
| 43,515 |
|
| Total consumer | 333,606 |
| 331,151 |
| 339,957 |
| 344,253 |
| 343,628 |
|
| Total loans |
| $3,200,100 |
|
| $3,224,860 |
|
| $3,234,371 |
|
| $3,181,355 |
|
| $3,080,884 |
|
|
| | | | | | | | | | | |
| | June 30, 2017 | | December 31, 2016 |
| | Balance |
| % of Total | | Balance | % of Total |
| Commercial Real Estate Loans by Property Location: | | | | | |
| Rhode Island, Connecticut, Massachusetts |
| $1,048,992 |
| 93.6 | % | |
| $1,105,539 |
| 92.5 | % |
| New York, New Jersey, Pennsylvania | 59,508 |
| 5.3 | % | | 77,038 |
| 6.4 | % |
| New Hampshire | 12,773 |
| 1.1 | % | | 12,980 |
| 1.1 | % |
| Total commercial real estate loans (1) |
| $1,121,273 |
| 100.0 | % | |
| $1,195,557 |
| 100.0 | % |
| | | | | | |
| Residential Mortgages by Property Location: | | | | | |
| Rhode Island, Connecticut, Massachusetts |
| $1,151,846 |
| 98.6 | % | |
| $1,106,366 |
| 98.6 | % |
| New Hampshire, Vermont, Maine | 11,871 |
| 1.0 | % | | 11,445 |
| 1.0 | % |
| New York, Virginia, New Jersey, Maryland, Pennsylvania | 2,208 |
| 0.2 | % | | 2,648 |
| 0.2 | % |
| Ohio | 903 |
| 0.1 | % | | 997 |
| 0.1 | % |
| Other | 1,277 |
| 0.1 | % | | 1,292 |
| 0.1 | % |
| Total residential mortgages |
| $1,168,105 |
| 100.0 | % | |
| $1,122,748 |
| 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. |
|
| | | | | | | | | | | | | | | |
| | Jun 30,
2017 | Mar 31,
2017 | Dec 31,
2016 | Sep 30,
2016 | Jun 30,
2016 |
| Deposits: | | | | | |
| Non-interest bearing demand deposits |
| $533,147 |
|
| $534,792 |
|
| $521,165 |
|
| $520,860 |
|
| $476,848 |
|
| Interest-bearing demand deposits | 54,666 |
| 62,182 |
| 64,795 |
| 45,167 |
| 35,459 |
|
| NOW accounts | 448,617 |
| 454,344 |
| 427,707 |
| 404,827 |
| 414,532 |
|
| Money market accounts | 666,047 |
| 762,233 |
| 730,075 |
| 794,905 |
| 675,896 |
|
| Savings accounts | 364,002 |
| 362,281 |
| 358,397 |
| 357,966 |
| 342,579 |
|
| Time deposits (in-market) | 553,783 |
| 557,312 |
| 549,376 |
| 554,669 |
| 549,935 |
|
| Wholesale brokered time deposits | 400,927 |
| 382,427 |
| 412,237 |
| 358,980 |
| 294,101 |
|
| Total deposits |
| $3,021,189 |
|
| $3,115,571 |
|
| $3,063,752 |
|
| $3,037,374 |
|
| $2,789,350 |
|
|
| | | | | | | | | | | | | | | |
| CREDIT & ASSET QUALITY DATA |
| (Unaudited; Dollars in thousands) |
| | |
| | Jun 30,
2017 | Mar 31,
2017 | Dec 31,
2016 | Sep 30,
2016 | Jun 30,
2016 |
| Asset Quality Ratios: | | | | | |
| Nonperforming assets to total assets | 0.49 | % | 0.54 | % | 0.53 | % | 0.59 | % | 0.48 | % |
| Nonaccrual loans to total loans | 0.63 | % | 0.69 | % | 0.68 | % | 0.75 | % | 0.56 | % |
| Total past due loans to total loans | 0.66 | % | 0.65 | % | 0.76 | % | 0.67 | % | 0.56 | % |
| Allowance for loan losses to nonaccrual loans | 132.00 | % | 119.52 | % | 117.89 | % | 107.09 | % | 149.73 | % |
| Allowance for loan losses to total loans | 0.83 | % | 0.82 | % | 0.80 | % | 0.81 | % | 0.84 | % |
| | | | | | |
| Nonperforming Assets: | | | | | |
| Commercial mortgages |
| $6,422 |
|
| $7,809 |
|
| $7,811 |
|
| $10,357 |
|
| $4,054 |
|
| Commercial construction & development | — |
| — |
| — |
| — |
| — |
|
| Commercial & industrial | 1,232 |
| 1,129 |
| 1,337 |
| 1,744 |
| 1,204 |
|
| Residential real estate mortgages | 11,815 |
| 12,253 |
| 11,736 |
| 10,140 |
| 10,409 |
|
| Consumer | 729 |
| 936 |
| 1,174 |
| 1,709 |
| 1,581 |
|
| Total nonaccrual loans | 20,198 |
| 22,127 |
| 22,058 |
| 23,950 |
| 17,248 |
|
| Other real estate owned | 1,342 |
| 1,410 |
| 1,075 |
| 1,045 |
| 1,515 |
|
| Total nonperforming assets |
| $21,540 |
|
| $23,537 |
|
| $23,133 |
|
| $24,995 |
|
| $18,763 |
|
| | | | | | |
| Past Due Loans (30 days or more past due): | | | | | |
| Commercial mortgages |
| $6,422 |
|
| $7,806 |
|
| $8,708 |
|
| $10,352 |
|
| $4,062 |
|
| Commercial & industrial | 4,009 |
| 1,046 |
| 1,154 |
| 1,047 |
| 1,978 |
|
| Residential real estate mortgages | 8,857 |
| 10,533 |
| 12,226 |
| 8,291 |
| 8,893 |
|
| Consumer loans | 1,832 |
| 1,547 |
| 2,334 |
| 1,565 |
| 2,201 |
|
| Total past due loans |
| $21,120 |
|
| $20,932 |
|
| $24,422 |
|
| $21,255 |
|
| $17,134 |
|
| | | | | | |
| Accruing loans 90 days or more past due |
| $— |
|
| $— |
|
| $— |
|
| $— |
|
| $— |
|
| Nonaccrual loans included in past due loans |
| $14,490 |
|
| $18,081 |
|
| $18,602 |
|
| $18,796 |
|
| $13,211 |
|
|
| | | | | | | | | | | | | | | | | | | | | | |
| | | | For the Six Months Ended |
| | For the Three Months Ended | |
| | Jun 30,
2017 | Mar 31,
2017 | Dec 31,
2016 | Sep 30,
2016 | Jun 30,
2016 | | Jun 30,
2017 | Jun 30,
2016 |
| Nonaccrual Loan Activity: | | | | | | | | |
| Balance at beginning of period |
| $22,127 |
|
| $22,058 |
|
| $23,950 |
|
| $17,248 |
|
| $17,425 |
| |
| $22,058 |
|
| $21,047 |
|
| Additions to nonaccrual status | 1,946 |
| 2,138 |
| 2,105 |
| 9,750 |
| 2,072 |
| | 4,084 |
| 3,424 |
|
| Loans returned to accruing status | (779 | ) | (547 | ) | (718 | ) | (592 | ) | — |
| | (1,325 | ) | (206 | ) |
| Loans charged-off | (642 | ) | (79 | ) | (2,622 | ) | (2,055 | ) | (860 | ) | | (721 | ) | (2,335 | ) |
| Loans transferred to other real estate owned | — |
| (478 | ) | (30 | ) | — |
| (435 | ) | | (576 | ) | (1,045 | ) |
| Payments, payoffs and other changes | (2,454 | ) | (965 | ) | (627 | ) | (401 | ) | (954 | ) | | (3,322 | ) | (3,637 | ) |
| Balance at end of period |
| $20,198 |
|
| $22,127 |
|
| $22,058 |
|
| $23,950 |
|
| $17,248 |
| |
| $20,198 |
|
| $17,248 |
|
| | | | | | | | | |
| Allowance for Loan Losses: | | | | | | | | |
| Balance at beginning of period |
| $26,446 |
|
| $26,004 |
|
| $25,649 |
|
| $25,826 |
|
| $26,137 |
| |
| $26,004 |
|
| $27,069 |
|
| Provision charged to earnings | 700 |
| 400 |
| 2,900 |
| 1,800 |
| 450 |
| | 1,100 |
| 950 |
|
| Charge-offs | (642 | ) | (79 | ) | (2,622 | ) | (2,055 | ) | (860 | ) | | (721 | ) | (2,335 | ) |
| Recoveries | 158 |
| 121 |
| 77 |
| 78 |
| 99 |
| | 279 |
| 142 |
|
| Balance at end of period |
| $26,662 |
|
| $26,446 |
|
| $26,004 |
|
| $25,649 |
|
| $25,826 |
| |
| $26,662 |
|
| $25,826 |
|
| | | | | | | | | |
| Net Loan Charge-Offs (Recoveries): | | | | | | | | |
| Commercial mortgages |
| $318 |
|
| $— |
|
| $2,510 |
|
| $1,936 |
|
| $65 |
| |
| $318 |
|
| $1,314 |
|
| Commercial & industrial | 115 |
| (105 | ) | (20 | ) | (43 | ) | 684 |
| | 10 |
| 666 |
|
| Residential real estate mortgages | 8 |
| (4 | ) | 6 |
| 47 |
| 2 |
| | 4 |
| 136 |
|
| Consumer | 43 |
| 67 |
| 49 |
| 37 |
| 10 |
| | 110 |
| 77 |
|
| Total |
| $484 |
|
| ($42 | ) |
| $2,545 |
|
| $1,977 |
|
| $761 |
| |
| $442 |
|
| $2,193 |
|
| | | | | | | | | |
| Net charge-offs to average loans (annualized) | 0.06 | % | (0.01 | %) | 0.31 | % | 0.25 | % | 0.10 | % | | 0.03 | % | 0.14 | % |
The following table presents average balance and interest rate information. Tax-exempt income is converted to a fully taxable equivalent (FTE) basis using the statutory federal income tax rate adjusted for applicable state income taxes net of the related federal tax benefit. Unrealized gains (losses) on available for sale securities and fair value adjustments on mortgage loans held for sale are excluded from the average balance and yield calculations. Nonaccrual and renegotiated loans, as well as interest recognized on these loans are included in amounts presented for loans.
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| CONSOLIDATED AVERAGE BALANCE SHEETS (FTE Basis) |
| (Unaudited; Dollars in thousands) |
| | |
| For the Three Months Ended | June 30, 2017 | | March 31, 2017 | | June 30, 2016 |
| | Average Balance | Interest | Yield/ Rate | | Average Balance | Interest | Yield/ Rate | | Average Balance | Interest | Yield/ Rate |
| |
| Assets: | | | | | | | | | | | |
| Commercial mortgages |
| $1,037,327 |
|
| $9,821 |
| 3.80 |
| |
| $1,079,171 |
|
| $9,444 |
| 3.55 | |
| $1,019,290 |
|
| $8,992 |
| 3.55 |
| Construction & development | 126,212 |
| 1,211 |
| 3.85 |
| | 127,861 |
| 1,113 |
| 3.53 | | 117,204 |
| 985 |
| 3.38 |
| Commercial & industrial | 574,775 |
| 6,607 |
| 4.61 |
| | 573,801 |
| 6,157 |
| 4.35 | | 591,893 |
| 6,408 |
| 4.35 |
| Total commercial loans | 1,738,314 |
|
| $17,639 |
| 4.07 |
| | 1,780,833 |
|
| $16,714 |
| 3.81 | | 1,728,387 |
|
| $16,385 |
| 3.81 |
| Residential real estate loans, including loans held for sale | 1,162,895 |
| 11,088 |
| 3.82 |
| | 1,152,468 |
| 10,868 |
| 3.82 | | 1,024,653 |
| 9,980 |
| 3.92 |
| Consumer loans | 332,053 |
| 3,464 |
| 4.18 |
| | 335,054 |
| 3,323 |
| 4.02 | | 342,866 |
| 3,311 |
| 3.88 |
| Total loans | 3,233,262 |
| 32,191 |
| 3.99 |
| | 3,268,355 |
| 30,905 |
| 3.83 | | 3,095,906 |
| 29,676 |
| 3.86 |
| Cash, federal funds sold and short-term investments | 60,428 |
| 156 |
| 1.04 |
| | 56,195 |
| 104 |
| 0.75 | | 69,839 |
| 70 |
| 0.40 |
| FHLBB stock | 44,362 |
| 439 |
| 3.97 |
| | 43,622 |
| 387 |
| 3.60 | | 31,723 |
| 231 |
| 2.93 |
| Taxable debt securities | 773,280 |
| 4,844 |
| 2.51 |
| | 755,955 |
| 4,709 |
| 2.53 | | 396,428 |
| 2,487 |
| 2.52 |
| Nontaxable debt securities | 7,076 |
| 109 |
| 6.18 |
| | 11,521 |
| 173 |
| 6.09 | | 28,531 |
| 433 |
| 6.10 |
| Total securities | 780,356 |
| 4,953 |
| 2.55 |
| | 767,476 |
| 4,882 |
| 2.58 | | 424,959 |
| 2,920 |
| 2.76 |
| Total interest-earning assets | 4,118,408 |
| 37,739 |
| 3.68 |
| | 4,135,648 |
| 36,278 |
| 3.56 | | 3,622,427 |
| 32,897 |
| 3.65 |
| Noninterest-earning assets | 236,056 |
| | | | 229,823 |
| | | | 247,081 |
| | |
| Total assets |
| $4,354,464 |
| | | |
| $4,365,471 |
| | | |
| $3,869,508 |
| | |
| Liabilities and Shareholders' Equity: | | | | | | | | | | | |
| Interest-bearing demand deposits |
| $54,675 |
|
| ($8 | ) | (0.06 | ) | |
| $56,782 |
|
| $15 |
| 0.11 | |
| $42,952 |
|
| $7 |
| 0.07 |
| NOW accounts | 437,282 |
| 57 |
| 0.05 |
| | 420,622 |
| 50 |
| 0.05 | | 403,136 |
| 53 |
| 0.05 |
| Money market accounts | 711,711 |
| 640 |
| 0.36 |
| | 754,501 |
| 599 |
| 0.32 | | 710,075 |
| 459 |
| 0.26 |
| Savings accounts | 361,545 |
| 52 |
| 0.06 |
| | 357,894 |
| 51 |
| 0.06 | | 338,504 |
| 49 |
| 0.06 |
| Time deposits (in-market) | 559,442 |
| 1,460 |
| 1.05 |
| | 554,855 |
| 1,418 |
| 1.04 | | 542,621 |
| 1,345 |
| 1.00 |
| Wholesale brokered time deposits | 392,734 |
| 1,390 |
| 1.42 |
| | 397,274 |
| 1,369 |
| 1.40 | | 302,707 |
| 1,068 |
| 1.42 |
| FHLBB advances | 817,349 |
| 3,509 |
| 1.72 |
| | 831,614 |
| 3,344 |
| 1.63 | | 587,395 |
| 2,313 |
| 1.58 |
| Junior subordinated debentures | 22,681 |
| 149 |
| 2.63 |
| | 22,681 |
| 138 |
| 2.47 | | 22,681 |
| 119 |
| 2.11 |
| Other | 13 |
| — |
| — |
| | 27 |
| 1 |
| 15.02 | | 66 |
| 1 |
| 6.09 |
| Total interest-bearing liabilities | 3,357,432 |
| 7,249 |
| 0.87 |
| | 3,396,250 |
| 6,985 |
| 0.83 | | 2,950,137 |
| 5,414 |
| 0.74 |
| Demand deposits | 543,781 |
| | | | 527,215 |
| | | | 473,731 |
| | |
| Other liabilities | 49,013 |
| | | | 44,889 |
| | | | 60,923 |
| | |
| Shareholders' equity | 404,238 |
| | | | 397,117 |
| | | | 384,717 |
| | |
| Total liabilities and shareholders' equity |
| $4,354,464 |
| | | |
| $4,365,471 |
| | | |
| $3,869,508 |
| | |
| Net interest income (FTE) | |
| $30,490 |
| | | |
| $29,293 |
| | | |
| $27,483 |
| |
| Interest rate spread | | | 2.81 |
| | | | 2.73 | | | | 2.91 |
| Net interest margin | | | 2.97 |
| | | | 2.87 | | | | 3.05 |
Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:
|
| | | | | | | | | |
| For the Three Months Ended | Jun 30, 2017 | Mar 31, 2017 | Jun 30, 2016 |
| Commercial loans |
| $549 |
|
| $553 |
|
| $554 |
|
| Nontaxable debt securities | 37 |
| 61 |
| 153 |
|
| Total |
| $586 |
|
| $614 |
|
| $707 |
|
|
| | | | | | | | | | | | | | | |
| | | | | | | | |
| CONSOLIDATED AVERAGE BALANCE SHEETS (FTE Basis) |
| (Unaudited; Dollars in thousands) |
| | |
| For the Six Months Ended | June 30, 2017 | | June 30, 2016 |
| | Average Balance | Interest | Yield/ Rate | | Average Balance | Interest | Yield/ Rate |
| |
| Assets: | | | | | | | |
| Commercial mortgages |
| $1,058,139 |
|
| $19,264 |
| 3.67 | |
| $976,619 |
|
| $17,207 |
| 3.54 |
| Construction & development | 127,031 |
| 2,324 |
| 3.69 | | 123,209 |
| 2,093 |
| 3.42 |
| Commercial & industrial | 574,286 |
| 12,765 |
| 4.48 | | 598,203 |
| 14,089 |
| 4.74 |
| Total commercial loans | 1,759,456 |
| 34,353 |
| 3.94 | | 1,698,031 |
| 33,389 |
| 3.95 |
| Residential real estate loans, including loans held for sale | 1,157,710 |
| 21,956 |
| 3.82 | | 1,027,956 |
| 20,135 |
| 3.94 |
| Consumer loans | 333,545 |
| 6,787 |
| 4.10 | | 343,193 |
| 6,704 |
| 3.93 |
| Total loans | 3,250,711 |
| 63,096 |
| 3.91 | | 3,069,180 |
| 60,228 |
| 3.95 |
| Cash, federal funds sold and short-term investments | 58,323 |
| 260 |
| 0.90 | | 69,164 |
| 134 |
| 0.39 |
| FHLBB stock | 43,994 |
| 826 |
| 3.79 | | 28,660 |
| 441 |
| 3.09 |
| Taxable debt securities | 764,666 |
| 9,553 |
| 2.52 | | 377,744 |
| 4,857 |
| 2.59 |
| Nontaxable debt securities | 9,286 |
| 282 |
| 6.12 | | 30,922 |
| 940 |
| 6.11 |
| Total securities | 773,952 |
| 9,835 |
| 2.56 | | 408,666 |
| 5,797 |
| 2.85 |
| Total interest-earning assets | 4,126,980 |
| 74,017 |
| 3.62 | | 3,575,670 |
| 66,600 |
| 3.75 |
| Noninterest-earning assets | 232,957 |
| | | | 243,597 |
| | |
| Total assets |
| $4,359,937 |
| | | |
| $3,819,267 |
| | |
| Liabilities and Shareholders' Equity: | | | | | | | |
| Interest-bearing demand deposits |
| $55,722 |
|
| $7 |
| 0.03 | |
| $46,828 |
|
| $20 |
| 0.09 |
| NOW accounts | 428,998 |
| 108 |
| 0.05 | | 394,812 |
| 110 |
| 0.06 |
| Money market accounts | 732,988 |
| 1,239 |
| 0.34 | | 748,354 |
| 975 |
| 0.26 |
| Savings accounts | 359,730 |
| 102 |
| 0.06 | | 333,339 |
| 96 |
| 0.06 |
| Time deposits (in-market) | 557,161 |
| 2,878 |
| 1.04 | | 540,328 |
| 2,659 |
| 0.99 |
| Wholesale brokered time deposits | 394,992 |
| 2,759 |
| 1.41 | | 299,754 |
| 2,089 |
| 1.40 |
| FHLBB advances | 824,442 |
| 6,853 |
| 1.68 | | 520,207 |
| 4,465 |
| 1.73 |
| Junior subordinated debentures | 22,681 |
| 287 |
| 2.55 | | 22,681 |
| 231 |
| 2.05 |
| Other | 20 |
| 1 |
| 10.08 | | 73 |
| 3 |
| 8.26 |
| Total interest-bearing liabilities | 3,376,734 |
| 14,234 |
| 0.85 | | 2,906,376 |
| 10,648 |
| 0.74 |
| Demand deposits | 535,544 |
| | | | 472,757 |
| | |
| Other liabilities | 46,962 |
| | | | 57,605 |
| | |
| Shareholders' equity | 400,697 |
| | | | 382,529 |
| | |
| Total liabilities and shareholders' equity |
| $4,359,937 |
| | | |
| $3,819,267 |
| | |
| Net interest income (FTE) | |
| $59,783 |
| | | |
| $55,952 |
| |
| Interest rate spread | | | 2.77 | | | | 3.01 |
| Net interest margin | | | 2.92 | | | | 3.15 |
Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:
|
| | | | | | |
| For the Six Months Ended | Jun 30, 2017 | Jun 30, 2016 |
| Commercial loans |
| $1,102 |
|
| $1,108 |
|
| Nontaxable debt securities | 98 |
| 333 |
|
| Total |
| $1,200 |
|
| $1,441 |
|
|
| | | | | | | | | | | | | | | |
| SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures |
| (Unaudited; Dollars in thousands, except per share amounts) |
| | |
| | Jun 30,
2017 | Mar 31,
2017 | Dec 31,
2016 | Sep 30,
2016 | Jun 30,
2016 |
| Tangible Book Value per Share: | | | | | |
| Total shareholders' equity, as reported |
| $406,042 |
|
| $397,785 |
|
| $390,804 |
|
| $395,327 |
|
| $388,332 |
|
| Less: | | | | | |
| Goodwill | 63,909 |
| 64,059 |
| 64,059 |
| 64,059 |
| 64,059 |
|
| Identifiable intangible assets, net | 9,642 |
| 9,898 |
| 10,175 |
| 10,493 |
| 10,814 |
|
| Total tangible shareholders' equity |
| $332,491 |
|
| $323,828 |
|
| $316,570 |
|
| $320,775 |
|
| $313,459 |
|
| | | | | | |
| Shares outstanding, as reported | 17,210 |
| 17,193 |
| 17,171 |
| 17,107 |
| 17,081 |
|
| | | | | | |
| Book value per share - GAAP |
| $23.59 |
|
| $23.14 |
|
| $22.76 |
|
| $23.11 |
|
| $22.73 |
|
| Tangible book value per share - Non-GAAP |
| $19.32 |
|
| $18.83 |
|
| $18.44 |
|
| $18.75 |
|
| $18.35 |
|
| | | | | | |
| Tangible Equity to Tangible Assets: | | | | | |
| Total tangible shareholders' equity |
| $332,491 |
|
| $323,828 |
|
| $316,570 |
|
| $320,775 |
|
| $313,459 |
|
| | | | | | |
| Total assets, as reported |
| $4,375,529 |
|
| $4,388,763 |
|
| $4,381,115 |
|
| $4,204,034 |
|
| $3,917,081 |
|
| Less: | | | | | |
| Goodwill | 63,909 |
| 64,059 |
| 64,059 |
| 64,059 |
| 64,059 |
|
| Identifiable intangible assets, net | 9,642 |
| 9,898 |
| 10,175 |
| 10,493 |
| 10,814 |
|
| Total tangible assets |
| $4,301,978 |
|
| $4,314,806 |
|
| $4,306,881 |
|
| $4,129,482 |
|
| $3,842,208 |
|
| | | | | | |
| Equity to assets - GAAP | 9.28 | % | 9.06 | % | 8.92 | % | 9.40 | % | 9.91 | % |
| Tangible equity to tangible assets - Non-GAAP | 7.73 | % | 7.51 | % | 7.35 | % | 7.77 | % | 8.16 | % |
|
| | | | | | | | | | | | | | | | | | | | | | |
| | For the Three Months Ended | | For the Six Months Ended |
| | Jun 30,
2017 | Mar 31,
2017 | Dec 31,
2016 | Sep 30,
2016 | Jun 30,
2016 | | Jun 30,
2017 | Jun 30,
2016 |
| Return on Average Tangible Assets: | | | | | | | | |
| Net income, as reported |
| $13,199 |
|
| $11,782 |
|
| $12,162 |
|
| $12,327 |
|
| $11,057 |
| |
| $24,981 |
|
| $21,992 |
|
| | | | | | | | | |
| Total average assets, as reported |
| $4,354,464 |
|
| $4,365,471 |
|
| $4,272,883 |
|
| $4,062,688 |
|
| $3,869,508 |
| |
| $4,359,937 |
|
| $3,819,267 |
|
| Less average balances of: | | | | | | | | |
| Goodwill | 64,058 |
| 64,059 |
| 64,059 |
| 64,059 |
| 64,059 |
| | 64,059 |
| 64,059 |
|
| Identifiable intangible assets, net | 9,767 |
| 10,027 |
| 10,330 |
| 10,650 |
| 10,972 |
| | 9,896 |
| 11,133 |
|
| Total average tangible assets |
| $4,280,639 |
|
| $4,291,385 |
|
| $4,198,494 |
|
| $3,987,979 |
|
| $3,794,477 |
| |
| $4,285,982 |
|
| $3,744,075 |
|
| | | | | | | | | |
| Return on average assets - GAAP | 1.21 | % | 1.08 | % | 1.14 | % | 1.21 | % | 1.14 | % | | 1.15 | % | 1.15 | % |
| Return on average tangible assets - Non-GAAP | 1.23 | % | 1.10 | % | 1.16 | % | 1.24 | % | 1.17 | % | | 1.17 | % | 1.17 | % |
| | | | | | | | | |
| Return on Average Tangible Equity: | | | | | | | | |
| Net income, as reported |
| $13,199 |
|
| $11,782 |
|
| $12,162 |
|
| $12,327 |
|
| $11,057 |
| |
| $24,981 |
|
| $21,992 |
|
| | | | | | | | | |
| Total average equity, as reported |
| $404,238 |
|
| $397,117 |
|
| $396,741 |
|
| $392,233 |
|
| $384,717 |
| |
| $400,697 |
|
| $382,529 |
|
| Less average balances of: | | | | | | | | |
| Goodwill | 64,058 |
| 64,059 |
| 64,059 |
| 64,059 |
| 64,059 |
| | 64,059 |
| 64,059 |
|
| Identifiable intangible assets, net | 9,767 |
| 10,027 |
| 10,330 |
| 10,650 |
| 10,972 |
| | 9,896 |
| 11,133 |
|
| Total average tangible equity |
| $330,413 |
|
| $323,031 |
|
| $322,352 |
|
| $317,524 |
|
| $309,686 |
| |
| $326,742 |
|
| $307,337 |
|
| | | | | | | | | |
| Return on average equity - GAAP | 13.06 | % | 11.87 | % | 12.26 | % | 12.57 | % | 11.50 | % | | 12.47 | % | 11.50 | % |
| Return on average tangible equity - Non-GAAP | 15.98 | % | 14.59 | % | 15.09 | % | 15.53 | % | 14.28 | % | | 15.29 | % | 14.31 | % |
