NASDAQ: WASH
Contact: Elizabeth B. Eckel
Senior Vice President, Marketing
Telephone: (401) 348-1309
E-mail: ebeckel@washtrust.com
Date: October 21, 2019
FOR IMMEDIATE RELEASE
Washington Trust Reports Third Quarter 2019 Earnings
WESTERLY, R.I., October 21, 2019 (PR NEWSWIRE)…Washington Trust Bancorp, Inc. (Nasdaq:WASH), parent company of The Washington Trust Company, today announced third quarter 2019 net income of $18.8 million, or $1.08 per diluted share, compared to net income of $17.3 million, or $0.99 per diluted share, reported for the second quarter of 2019.
“Washington Trust’s third quarter results once again reflect our continued success at generating a consistent stream of revenues through our diverse business model,” stated Edward O. Handy III, Chairman and Chief Executive Officer.
Selected highlights for the third quarter of 2019 include:
| |
| • | Returns on average equity and average assets were 15.20% and 1.44%, respectively. |
| |
| • | Mortgage banking revenues reached an all-time quarterly high and totaled $4.8 million for the third quarter, up by $1.2 million, or 33%, from the preceding quarter. |
| |
| • | As a result of FDIC assessment credits recognized in the third quarter of 2019, which amounted to approximately 4 cents per diluted share, FDIC deposit insurance costs declined by $1.0 million on a linked quarter basis. Excluding the benefit from these credits, net income and diluted earnings per share for the third quarter of 2019 were record quarterly highs for the Corporation. |
| |
| • | Total loans amounted to $3.8 billion, up by $48 million from the preceding quarter. Total loans were up by $222 million, or 6%, from the balance at September 30, 2018. |
| |
| • | Total deposits amounted to $3.6 billion, up by $82 million from the preceding quarter. Total deposits were up by $172 million, or 5%, from the balance at September 30, 2018. |
| |
| • | In September, Washington Trust declared a quarterly dividend of 51 cents per share. Year-to-date 2019 dividends declared amounted to $1.49 per share, representing an increase of 20 cents per share, or 16%, from the same period a year ago. |
Net Interest Income
Net interest income was $33.0 million for the third quarter of 2019, down by $880 thousand, or 3%, from the second quarter of 2019. The net interest margin was 2.72% for the third quarter, down by 9 basis points from 2.81% reported in the preceding quarter. Prepayment penalty income associated with loan payoffs, which is included in net interest income, was $130 thousand in the third quarter, compared to $37 thousand in the preceding quarter. Excluding the impact of prepayment penalty income associated with loan payoffs from both periods, the net interest margin for the third quarter of 2019 was 2.71%, down by 10 basis points from 2.81% in the preceding quarter.
Washington Trust
October 21, 2019
Significant linked quarter changes included:
| |
| • | Average interest-earning assets decreased by $22 million, driven by a $76 million decline in the average balance of the securities portfolio, which was partially offset by increases of $21 million in the average balance of loans and $23 million in the average balance of cash and due from banks. Given limited securities-related reinvestment opportunities, pay-downs received on the securities portfolio are being used to reduce wholesale funding balances. The yield on interest-earning assets for the third quarter was 4.07%, down by 11 basis points from the preceding quarter. The yield was negatively impacted by lower market interest rates. |
| |
| • | Average interest-bearing liabilities decreased by $45 million, including a decrease of $103 million in average wholesale funding balances (wholesale brokered time deposits and Federal Home Loan Bank advances), partially offset by a $58 million increase in average in-market deposits. The cost of interest-bearing liabilities for the third quarter was 1.66%, down by 2 basis points from the preceding quarter. |
Noninterest Income
Noninterest income totaled $18.3 million for the third quarter of 2019, up by $1.6 million, or 9%, from the second quarter of 2019. Significant linked quarter changes included:
| |
| • | Wealth management revenues amounted to $9.2 million for the third quarter of 2019, down by $396 thousand, or 4%, on a linked quarter basis. This consisted of decreases of $128 thousand, or 1%, in asset-based revenues and $268 thousand, or 66%, in transaction-based revenues. The linked quarter decrease in transaction-based revenues was largely due to tax reporting and preparation fees, which are generally concentrated in the first half of the year. |
Wealth management assets under administration were $6.1 billion at September 30, 2019, down by $353 million, or 5%, from the balance at June 30, 2019. The average balance of assets under administration for the third quarter decreased by approximately $13 million, or 0.2%, from the average balance for the preceding quarter. The decline in assets under administration reflected approximately $450 million of client outflows associated with lost client accounts due to the departure of two senior counselors at the end of the preceding quarter. The impact of these lost accounts was a reduction of revenues of approximately $290 thousand during the third quarter and is estimated to be a reduction of $620 thousand during the fourth quarter of 2019.
| |
| • | Mortgage banking revenues totaled $4.8 million for the third quarter of 2019, up by $1.2 million, or 33%, from the second quarter of 2019. Mortgage loans sold in the secondary market amounted to $185 million for the third quarter of 2019, an increase of $48 million, or 35%, compared to the preceding quarter. |
| |
| • | Loan related derivative income was $1.4 million for the third quarter of 2019, up by $661 thousand, or 89% from the preceding quarter, due to higher volume of commercial borrower interest rate swap transactions. |
Noninterest Expenses
Noninterest expenses totaled $26.9 million for the third quarter of 2019, down by $1.3 million, or 5%, from the second quarter of 2019. Included in this linked quarter change was a $1.0 million reduction in FDIC deposit insurance costs due to FDIC assessment credits recognized in the third quarter of 2019. Excluding the reduction in FDIC deposit insurance costs, noninterest expenses were down by $281 thousand, or 1%, from the preceding quarter. Significant linked quarter changes included:
| |
| • | Salaries and benefits totaled $18.3 million for the third quarter of 2019, down by $104 thousand on a linked quarter basis. |
Washington Trust
October 21, 2019
Lower wealth management compensation costs associated with the departure of the two senior counselors discussed above were partially offset by increased volume-related compensation costs in our mortgage banking area.
| |
| • | Outsourced services expense for third quarter of 2019 were up by $204 thousand from the preceding quarter, reflecting volume-related increases in third party processing costs. |
| |
| • | Advertising and promotion expenses for third quarter of 2019 decreased by $157 thousand from the second quarter, largely due to timing of promotional activities. |
| |
| • | Other noninterest expenses for third quarter of 2019 declined by $249 thousand on a linked quarter basis, reflecting modest decreases in a variety of expense categories. |
Income tax expense totaled $5.2 million for the third quarter of 2019, up by $574 thousand from the preceding quarter. The effective tax rate for the third quarter of 2019 was 21.8%, compared to 21.3% for the preceding quarter. Based on current federal and applicable state income tax statutes, the Corporation currently expects its 2019 effective tax rate to be 21.5%.
Investment Securities
The securities portfolio totaled $887 million at September 30, 2019, down by $82 million from the balance at June 30, 2019. The decrease was primarily due to routine principal pay-downs on mortgage-backed securities and calls of debt securities. Investment securities represented 17% of total assets at September 30, 2019, compared to 19% of total assets at June 30, 2019.
Loans
Total loans amounted to $3.8 billion at September 30, 2019, up by $48 million from the end of the preceding quarter. Total commercial loans grew by $17 million, with a net increase of $34 million in the commercial real estate portfolio partially offset by a $17 million net decline in the commercial and industrial portfolio. In the third quarter of 2019, commercial loan originations and advances totaled approximately $93 million and were concentrated in the commercial real estate portfolio. The residential real estate loan portfolio increased by $26 million from the end of the second quarter, reflecting increased mortgage origination activity. In the third quarter of 2019, residential mortgage loan originations for portfolio amounted to $105 million. The consumer loan portfolio increased by $4 million from the balance at June 30, 2019.
Deposits and Borrowings
Total deposits amounted to $3.6 billion at September 30, 2019, up by $82 million, or 2%, from the end of the preceding quarter. Included in total deposits were out-of-market wholesale brokered time deposits, which decreased by $52 million from the balance at June 30, 2019. Excluding wholesale brokered time deposits, total in-market deposits were up by $134 million, reflecting seasonal inflows of various institutional and governmental depositors based on their underlying business cycles. Federal Home Loan Bank advances amounted to $957 million at September 30, 2019, down by $104 million from the balance at June 30, 2019.
Asset Quality
Total nonaccrual loans amounted to $14.9 million, or 0.39% of total loans, at September 30, 2019, compared to $12.9 million, or 0.34% of total loans, at June 30, 2019, reflecting a net increase in nonaccrual residential real estate loans. Total past due loans amounted to $14.4 million, or 0.38% of total loans, at September 30, 2019, compared to $17.9 million, or 0.48% of total loans, at June 30, 2019. The decline in past due loans was largely attributable to one past due commercial real estate loan that was placed
Washington Trust
October 21, 2019
on nonaccrual status, partially charged-off and transferred to other real estate owned in the third quarter.
A loan loss provision totaling $400 thousand was recognized in the third quarter of 2019, compared to a loan loss provision of $525 thousand recognized in the preceding quarter. These provisions were based on management's assessment of loss exposure, as well as loan loss allocations commensurate with growth and changes in the loan portfolio. Net charge-offs totaled $801 thousand in the third quarter and were largely attributable to the one commercial real estate relationship discussed above. Net charge-offs were $771 thousand in the preceding quarter and were largely attributable to one residential real estate relationship.
The allowance for loan losses amounted to $27.0 million, or 0.71% of total loans, at September 30, 2019, compared to $27.4 million, or 0.73% of total loans, at June 30, 2019.
Capital and Dividends
Total shareholders' equity was $498 million at September 30, 2019, up by $13.6 million from June 30, 2019. This increase included net income of $18.8 million and an increase of $2.9 million in the accumulated other comprehensive income component of shareholders' equity reflecting an increase in the fair value of available for sale debt securities, partially offset by $8.9 million in dividend declarations in the third quarter. The Board of Directors declared a quarterly dividend of 51 cents per share for the quarter ended September 30, 2019. The dividend was paid on October 11, 2019 to shareholders of record on October 1, 2019.
Capital levels at September 30, 2019 exceeded the regulatory minimum levels to be considered well capitalized, with a total risk-based capital ratio of 12.94% at September 30, 2019, compared to 12.80% at June 30, 2019. Book value per share amounted to $28.71 at September 30, 2019, compared to $27.93 at June 30, 2019.
Conference Call
Washington Trust will host a conference call to discuss its third quarter results, business highlights and outlook on Tuesday, October 22, 2019 at 8:30 a.m. (Eastern Time). Individuals may dial in to the call at 1-888-317-6016. An audio replay of the call will be available, shortly after the conclusion of the call, by dialing 1-877-344-7529 and entering the Replay PIN Number 10135833; the audio replay will be available through November 5, 2019. Also, a webcast of the call will be posted in the Investor Relations section of Washington Trust's web site, http://ir.washtrust.com, and will be available through December 31, 2019.
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 http://ir.washtrust.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 our annual reports to shareholders, 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 our control. These
Washington Trust
October 21, 2019
risks, uncertainties and other factors may cause our actual results, performance or achievements 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 or outflows 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 our competition; changes in legislation or regulation and accounting principles, policies and guidelines; operational risks including, but not limited to, cybersecurity breaches, fraud and natural disasters; 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, 2018, 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 |
| CONDENSED CONSOLIDATED BALANCE SHEETS |
| (Unaudited; Dollars in thousands) |
| | | | | | |
| | Sep 30,
2019 | Jun 30,
2019 | Mar 31,
2019 | Dec 31,
2018 | Sep 30,
2018 |
| Assets: | | | | | |
| Cash and due from banks |
| $141,768 |
|
| $115,904 |
|
| $88,242 |
|
| $89,923 |
|
| $72,934 |
|
| Short-term investments | 4,336 |
| 3,910 |
| 3,317 |
| 3,552 |
| 2,917 |
|
| Mortgage loans held for sale, at fair value | 44,657 |
| 39,996 |
| 14,608 |
| 20,996 |
| 22,571 |
|
| Securities: | | | | | |
| Available for sale debt securities, at fair value | 887,020 |
| 969,168 |
| 994,881 |
| 927,810 |
| 812,647 |
|
| Held to maturity debt securities, at amortized cost | — |
| — |
| — |
| 10,415 |
| 10,863 |
|
| Total securities | 887,020 |
| 969,168 |
| 994,881 |
| 938,225 |
| 823,510 |
|
| Federal Home Loan Bank stock, at cost | 45,030 |
| 49,759 |
| 48,025 |
| 46,068 |
| 44,525 |
|
| Loans: | | | | | |
| Total loans | 3,778,106 |
| 3,730,339 |
| 3,738,469 |
| 3,680,360 |
| 3,556,203 |
|
| Less allowance for loan losses | 26,997 |
| 27,398 |
| 27,644 |
| 27,072 |
| 26,509 |
|
| Net loans | 3,751,109 |
| 3,702,941 |
| 3,710,825 |
| 3,653,288 |
| 3,529,694 |
|
| Premises and equipment, net | 29,293 |
| 29,302 |
| 29,822 |
| 29,005 |
| 28,195 |
|
| Operating lease right-of-use assets | 27,500 |
| 28,174 |
| 28,249 |
| — |
| — |
|
| Investment in bank-owned life insurance | 81,920 |
| 81,351 |
| 80,786 |
| 80,463 |
| 79,891 |
|
| Goodwill | 63,909 |
| 63,909 |
| 63,909 |
| 63,909 |
| 63,909 |
|
| Identifiable intangible assets, net | 7,448 |
| 7,684 |
| 7,923 |
| 8,162 |
| 8,400 |
|
| Other assets | 114,888 |
| 97,574 |
| 84,142 |
| 77,175 |
| 94,126 |
|
| Total assets |
| $5,198,878 |
|
| $5,189,672 |
|
| $5,154,729 |
|
| $5,010,766 |
|
| $4,770,672 |
|
| Liabilities: | | | | | |
| Deposits: | | | | | |
| Noninterest-bearing deposits |
| $619,839 |
|
| $587,326 |
|
| $577,319 |
|
| $603,216 |
|
| $611,829 |
|
| Interest-bearing deposits | 2,966,314 |
| 2,917,296 |
| 2,926,941 |
| 2,920,832 |
| 2,802,519 |
|
| Total deposits | 3,586,153 |
| 3,504,622 |
| 3,504,260 |
| 3,524,048 |
| 3,414,348 |
|
| Federal Home Loan Bank advances | 956,786 |
| 1,060,960 |
| 1,056,129 |
| 950,722 |
| 828,392 |
|
| Junior subordinated debentures | 22,681 |
| 22,681 |
| 22,681 |
| 22,681 |
| 22,681 |
|
| Operating lease liabilities | 29,541 |
| 30,210 |
| 30,187 |
| — |
| — |
|
| Other liabilities | 105,892 |
| 86,994 |
| 71,629 |
| 65,131 |
| 77,342 |
|
| Total liabilities | 4,701,053 |
| 4,705,467 |
| 4,684,886 |
| 4,562,582 |
| 4,342,763 |
|
| Shareholders’ Equity: | | | | | |
| Common stock | 1,084 |
| 1,083 |
| 1,082 |
| 1,081 |
| 1,081 |
|
| Paid-in capital | 121,900 |
| 121,115 |
| 120,743 |
| 119,888 |
| 119,220 |
|
| Retained earnings | 383,765 |
| 373,873 |
| 365,521 |
| 355,524 |
| 346,685 |
|
| Accumulated other comprehensive loss | (8,924 | ) | (11,866 | ) | (17,503 | ) | (28,309 | ) | (39,077 | ) |
| Total shareholders’ equity | 497,825 |
| 484,205 |
| 469,843 |
| 448,184 |
| 427,909 |
|
| Total liabilities and shareholders’ equity |
| $5,198,878 |
|
| $5,189,672 |
|
| $5,154,729 |
|
| $5,010,766 |
|
| $4,770,672 |
|
|
| | | | | | | | | | | | | | | | | | | | | | |
| Washington Trust Bancorp, Inc. and Subsidiaries |
| CONSOLIDATED STATEMENTS OF INCOME |
| (Unaudited; Dollars and shares in thousands, except per share amounts) |
| | For the Three Months Ended | | For the Nine Months Ended |
| | Sep 30,
2019 | Jun 30,
2019 | Mar 31,
2019 | Dec 31,
2018 | Sep 30,
2018 | | Sep 30,
2019 | Sep 30,
2018 |
| Interest income: | | | | | | | | |
| Interest and fees on loans |
| $41,558 |
|
| $42,138 |
|
| $41,744 |
|
| $40,299 |
|
| $38,493 |
| |
| $125,440 |
|
| $109,633 |
|
| Interest on mortgage loans held for sale | 410 |
| 288 |
| 180 |
| 289 |
| 384 |
| | 878 |
| 923 |
|
| Taxable interest on debt securities | 6,318 |
| 7,006 |
| 7,226 |
| 5,957 |
| 5,383 |
| | 20,550 |
| 15,859 |
|
| Nontaxable interest on debt securities | 1 |
| 8 |
| 9 |
| 9 |
| 9 |
| | 18 |
| 52 |
|
| Dividends on Federal Home Loan Bank stock | 747 |
| 720 |
| 695 |
| 669 |
| 634 |
| | 2,162 |
| 1,700 |
|
| Other interest income | 493 |
| 399 |
| 340 |
| 294 |
| 261 |
| | 1,232 |
| 723 |
|
| Total interest and dividend income | 49,527 |
| 50,559 |
| 50,194 |
| 47,517 |
| 45,164 |
| | 150,280 |
| 128,890 |
|
| Interest expense: |
|
| | | | | | | |
| Deposits | 9,792 |
| 9,469 |
| 8,696 |
| 7,953 |
| 6,546 |
| | 27,957 |
| 16,222 |
|
| Federal Home Loan Bank advances | 6,512 |
| 6,980 |
| 6,661 |
| 5,446 |
| 4,937 |
| | 20,153 |
| 13,627 |
|
| Junior subordinated debentures | 245 |
| 252 |
| 253 |
| 240 |
| 232 |
| | 750 |
| 629 |
|
| Total interest expense | 16,549 |
| 16,701 |
| 15,610 |
| 13,639 |
| 11,715 |
| | 48,860 |
| 30,478 |
|
| Net interest income | 32,978 |
| 33,858 |
| 34,584 |
| 33,878 |
| 33,449 |
| | 101,420 |
| 98,412 |
|
| Provision for loan losses | 400 |
| 525 |
| 650 |
| 800 |
| 350 |
| | 1,575 |
| 750 |
|
| Net interest income after provision for loan losses | 32,578 |
| 33,333 |
| 33,934 |
| 33,078 |
| 33,099 |
| | 99,845 |
| 97,662 |
|
| Noninterest income: |
|
| |
|
|
|
|
|
| | | |
| Wealth management revenues | 9,153 |
| 9,549 |
| 9,252 |
| 9,012 |
| 9,454 |
| | 27,954 |
| 29,329 |
|
| Mortgage banking revenues | 4,840 |
| 3,640 |
| 2,646 |
| 1,978 |
| 2,624 |
| | 11,126 |
| 8,403 |
|
| Card interchange fees | 1,099 |
| 1,018 |
| 997 |
| 977 |
| 983 |
| | 3,114 |
| 2,791 |
|
| Service charges on deposit accounts | 939 |
| 929 |
| 875 |
| 977 |
| 885 |
| | 2,743 |
| 2,651 |
|
| Loan related derivative income | 1,407 |
| 746 |
| 724 |
| 1,374 |
| 278 |
| | 2,877 |
| 1,087 |
|
| Income from bank-owned life insurance | 569 |
| 566 |
| 649 |
| 572 |
| 572 |
| | 1,784 |
| 1,624 |
|
| Net realized losses on securities | — |
| (80 | ) | — |
| — |
| — |
| | (80 | ) | — |
|
| Other income | 335 |
| 385 |
| 224 |
| 273 |
| 419 |
| | 944 |
| 1,066 |
|
| Total noninterest income | 18,342 |
| 16,753 |
| 15,367 |
| 15,163 |
| 15,215 |
| | 50,462 |
| 46,951 |
|
| Noninterest expense: |
|
| |
|
|
|
|
|
| | | |
| Salaries and employee benefits | 18,332 |
| 18,436 |
| 17,619 |
| 16,918 |
| 17,283 |
| | 54,387 |
| 52,359 |
|
| Outsourced services | 2,722 |
| 2,518 |
| 2,606 |
| 2,510 |
| 1,951 |
| | 7,846 |
| 6,174 |
|
| Net occupancy | 1,933 |
| 1,904 |
| 1,998 |
| 1,946 |
| 2,013 |
| | 5,835 |
| 5,945 |
|
| Equipment | 1,046 |
| 1,028 |
| 1,011 |
| 983 |
| 1,080 |
| | 3,085 |
| 3,329 |
|
| Legal, audit and professional fees | 645 |
| 664 |
| 534 |
| 587 |
| 559 |
| | 1,843 |
| 1,840 |
|
| FDIC deposit insurance costs | (460 | ) | 540 |
| 429 |
| 376 |
| 410 |
| | 509 |
| 1,236 |
|
| Advertising and promotion | 368 |
| 525 |
| 239 |
| 460 |
| 440 |
| | 1,132 |
| 946 |
|
| Amortization of intangibles | 236 |
| 239 |
| 239 |
| 239 |
| 245 |
| | 714 |
| 740 |
|
| Change in fair value of contingent consideration | — |
| — |
| — |
| (187 | ) | — |
| | — |
| — |
|
| Other expenses | 2,048 |
| 2,297 |
| 2,289 |
| 2,850 |
| 2,081 |
| | 6,634 |
| 6,911 |
|
| Total noninterest expense | 26,870 |
| 28,151 |
| 26,964 |
| 26,682 |
| 26,062 |
| | 81,985 |
| 79,480 |
|
| Income before income taxes | 24,050 |
| 21,935 |
| 22,337 |
| 21,559 |
| 22,252 |
| | 68,322 |
| 65,133 |
|
| Income tax expense | 5,236 |
| 4,662 |
| 4,842 |
| 4,523 |
| 4,741 |
| | 14,740 |
| 13,737 |
|
| Net income |
| $18,814 |
|
| $17,273 |
|
| $17,495 |
|
| $17,036 |
|
| $17,511 |
| |
| $53,582 |
|
| $51,396 |
|
| | | | | | | | | |
| Net income available to common shareholders |
| $18,778 |
|
| $17,238 |
|
| $17,461 |
|
| $17,004 |
|
| $17,475 |
| |
| $53,477 |
|
| $51,284 |
|
| | | | | | | | | |
| Weighted average common shares outstanding: | | | | | | | | |
| Basic | 17,338 |
| 17,330 |
| 17,304 |
| 17,297 |
| 17,283 |
| | 17,324 |
| 17,263 |
|
| Diluted | 17,414 |
| 17,405 |
| 17,401 |
| 17,385 |
| 17,382 |
| | 17,406 |
| 17,392 |
|
| Earnings per common share: | | | | | | | | |
| Basic |
| $1.08 |
|
| $0.99 |
|
| $1.01 |
|
| $0.98 |
|
| $1.01 |
| |
| $3.09 |
|
| $2.97 |
|
| Diluted |
| $1.08 |
|
| $0.99 |
|
| $1.00 |
|
| $0.98 |
|
| $1.01 |
| |
| $3.07 |
|
| $2.95 |
|
| | | | | | | | | |
| Cash dividends declared per share |
| $0.51 |
|
| $0.51 |
|
| $0.47 |
|
| $0.47 |
|
| $0.43 |
| |
| $1.49 |
|
| $1.29 |
|
|
| | | | | | | | | | | | | | | |
| Washington Trust Bancorp, Inc. and Subsidiaries |
| SELECTED FINANCIAL HIGHLIGHTS |
| (Unaudited; Dollars and shares in thousands, except per share amounts) |
| | |
| | Sep 30,
2019 | Jun 30,
2019 | Mar 31,
2019 | Dec 31,
2018 | Sep 30,
2018 |
| Share and Equity Related Data: | | | | | |
| Book value per share |
| $28.71 |
|
| $27.93 |
|
| $27.15 |
|
| $25.90 |
|
| $24.75 |
|
Tangible book value per share - Non-GAAP (1) |
| $24.60 |
|
| $23.80 |
|
| $23.00 |
|
| $21.74 |
|
| $20.57 |
|
| Market value per share |
| $48.31 |
|
| $52.18 |
|
| $48.15 |
|
| $47.53 |
|
| $55.30 |
|
| Shares issued and outstanding at end of period | 17,338 |
| 17,336 |
| 17,305 |
| 17,302 |
| 17,290 |
|
| | | | | | |
| Capital Ratios (2): | | | | | |
| Tier 1 risk-based capital | 12.21 | % | 12.06 | % | 11.84 | % | 11.81 | % | 12.00 | % |
| Total risk-based capital | 12.94 | % | 12.80 | % | 12.59 | % | 12.56 | % | 12.77 | % |
| Tier 1 leverage ratio | 8.97 | % | 8.76 | % | 8.69 | % | 8.89 | % | 8.91 | % |
| Common equity tier 1 | 11.62 | % | 11.46 | % | 11.25 | % | 11.20 | % | 11.37 | % |
| | | | | | |
| Balance Sheet Ratios: | | | | | |
| Equity to assets | 9.58 | % | 9.33 | % | 9.11 | % | 8.94 | % | 8.97 | % |
Tangible equity to tangible assets - Non-GAAP (1) | 8.32 | % | 8.06 | % | 7.83 | % | 7.62 | % | 7.57 | % |
| Loans to deposits (3) | 105.8 | % | 106.8 | % | 106.3 | % | 104.3 | % | 104.0 | % |
|
| | | | | | | | | | | | | | | |
| | | | For the Nine Months Ended |
| | For the Three Months Ended | |
| | Sep 30,
2019 | Jun 30,
2019 | Mar 31,
2019 | Dec 31,
2018 | Sep 30,
2018 | | Sep 30,
2019 | Sep 30,
2018 |
| Performance Ratios (4): | | | | | | | | |
Net interest margin (5) | 2.72 | % | 2.81 | % | 2.93 | % | 2.95 | % | 2.99 | % | | 2.82 | % | 3.03 | % |
| Return on average assets (net income divided by average assets) | 1.44 | % | 1.34 | % | 1.39 | % | 1.40 | % | 1.47 | % | | 1.39 | % | 1.48 | % |
Return on average tangible assets - Non-GAAP (1) | 1.46 | % | 1.36 | % | 1.41 | % | 1.42 | % | 1.49 | % | | 1.41 | % | 1.51 | % |
| Return on average equity (net income available for common shareholders divided by average equity) | 15.20 | % | 14.58 | % | 15.52 | % | 15.61 | % | 16.26 | % | | 15.09 | % | 16.41 | % |
Return on average tangible equity - Non-GAAP (1) | 17.79 | % | 17.17 | % | 18.43 | % | 18.75 | % | 19.59 | % | | 17.79 | % | 19.86 | % |
Efficiency ratio (6) | 52.4 | % | 55.6 | % | 54.0 | % | 54.4 | % | 53.6 | % | | 54.0 | % | 54.7 | % |
| |
| (1) | See the section labeled “SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures” at the end of this document. |
| |
| (2) | Estimated for September 30, 2019 and actuals for prior periods. |
| |
| (3) | Period-end balances of net loans and mortgage loans held for sale as a percentage of total deposits. |
| |
| (4) | Annualized based on the actual number of days in the period. |
| |
| (5) | Fully taxable equivalent (FTE) net interest income as a percentage of average-earnings assets. |
| |
| (6) | Total noninterest expense as percentage of total revenues (net interest income and noninterest income). |
|
| | | | | | | | | | | | | | | | | | | | | | |
| Washington Trust Bancorp, Inc. and Subsidiaries |
| SELECTED FINANCIAL HIGHLIGHTS |
| (Unaudited; Dollars in thousands) |
| | | | | |
| | For the Three Months Ended | | For the Nine Months Ended |
| | Sep 30,
2019 | Jun 30,
2019 | Mar 31,
2019 | Dec 31,
2018 | Sep 30,
2018 | | Sep 30,
2019 | Sep 30,
2018 |
| Wealth Management Results | | | | | | | | |
| Wealth Management Revenues: | | | | | | | | |
| Asset-based revenues |
| $9,013 |
|
| $9,141 |
|
| $8,921 |
|
| $8,930 |
|
| $9,322 |
| |
| $27,075 |
|
| $28,413 |
|
| Transaction-based revenues | 140 |
| 408 |
| 331 |
| 82 |
| 132 |
| | 879 |
| 916 |
|
| Total wealth management revenues |
| $9,153 |
|
| $9,549 |
|
| $9,252 |
|
| $9,012 |
|
| $9,454 |
| |
| $27,954 |
|
| $29,329 |
|
| | | | | | | | | |
| Assets Under Administration (AUA): | | | | | | | | |
| Balance at beginning of period |
| $6,478,890 |
|
| $6,350,128 |
|
| $5,910,814 |
|
| $6,462,340 |
|
| $6,220,155 |
| |
| $5,910,814 |
|
| $6,714,637 |
|
| Net investment appreciation (depreciation) & income | 66,514 |
| 222,489 |
| 520,057 |
| (534,847 | ) | 232,245 |
| | 809,060 |
| 333,671 |
|
| Net client asset flows | (419,077 | ) | (93,727 | ) | (80,743 | ) | (16,679 | ) | 9,940 |
| | (593,547 | ) | (585,968 | ) |
| Balance at end of period |
| $6,126,327 |
|
| $6,478,890 |
|
| $6,350,128 |
|
| $5,910,814 |
|
| $6,462,340 |
| |
| $6,126,327 |
|
| $6,462,340 |
|
| | | | | | | | | |
| Percentage of AUA that are managed assets | 90% | 91% | 91% | 90% | 91% | | 90% | 91% |
| | | | | | | | | |
| Mortgage Banking Results | | | | | | | | |
| Mortgage Banking Revenues: | | | | | | | | |
| Gains & commissions on loan sales, net (1) |
| $4,752 |
|
| $3,523 |
|
| $2,474 |
|
| $1,798 |
|
| $2,485 |
| |
| $10,749 |
|
| $7,950 |
|
| Loan servicing fee income, net (2) | 88 |
| 117 |
| 172 |
| 180 |
| 139 |
| | 377 |
| 453 |
|
| Total mortgage banking revenues |
| $4,840 |
|
| $3,640 |
|
| $2,646 |
|
| $1,978 |
|
| $2,624 |
| |
| $11,126 |
|
| $8,403 |
|
| | | | | | | | | |
| Residential Mortgage Loan Originations: | | | | | | | | |
| Originations for retention in portfolio |
| $105,075 |
|
| $69,736 |
|
| $51,697 |
|
| $58,515 |
|
| $80,751 |
| |
| $226,508 |
|
| $277,070 |
|
| Originations for sale to secondary market (3) | 189,979 |
| 162,123 |
| 85,826 |
| 96,792 |
| 119,832 |
| | 437,928 |
| 330,245 |
|
| Total mortgage loan originations |
| $295,054 |
|
| $231,859 |
|
| $137,523 |
|
| $155,307 |
|
| $200,583 |
| |
| $664,436 |
|
| $607,315 |
|
| | | | | | | | | |
| Residential Mortgage Loans Sold: | | | | | | | | |
| Sold with servicing rights retained |
| $25,766 |
|
| $18,292 |
|
| $9,490 |
|
| $16,577 |
|
| $24,422 |
| |
| $53,548 |
|
| $82,634 |
|
| Sold with servicing rights released (3) | 159,210 |
| 119,122 |
| 82,589 |
| 81,985 |
| 107,694 |
| | 360,921 |
| 252,043 |
|
| Total mortgage loans sold |
| $184,976 |
|
| $137,414 |
|
| $92,079 |
|
| $98,562 |
|
| $132,116 |
| |
| $414,469 |
|
| $334,677 |
|
| |
| (1) | Includes gains on loan sales, commission income on loans originated for others, servicing right gains, fair value adjustments on mortgage loans held for sale, and fair value adjustments and gains on forward loan commitments. |
| |
| (2) | Represents loan servicing fee income, net of servicing right amortization and valuation adjustments. |
| |
| (3) | Includes brokered loans (loans originated for others). |
|
| | | | | | | | | | | | | | | |
| Washington Trust Bancorp, Inc. and Subsidiaries |
| END OF PERIOD LOAN AND DEPOSIT COMPOSITION |
| (Unaudited; Dollars in thousands) |
| | |
| | Sep 30,
2019 | Jun 30,
2019 | Mar 31,
2019 | Dec 31,
2018 | Sep 30,
2018 |
| Loans: | | | | | |
| Commercial real estate (1) |
| $1,517,320 |
|
| $1,482,836 |
|
| $1,463,682 |
|
| $1,392,408 |
|
| $1,240,350 |
|
| Commercial & industrial | 566,426 |
| 583,873 |
| 610,608 |
| 620,704 |
| 656,882 |
|
| Total commercial | 2,083,746 |
| 2,066,709 |
| 2,074,290 |
| 2,013,112 |
| 1,897,232 |
|
| | | | | | |
| Residential real estate (2) | 1,378,518 |
| 1,352,113 |
| 1,359,072 |
| 1,360,387 |
| 1,349,340 |
|
| | | | | | |
| Home equity | 294,250 |
| 288,078 |
| 279,938 |
| 280,626 |
| 282,331 |
|
| Other | 21,592 |
| 23,439 |
| 25,169 |
| 26,235 |
| 27,300 |
|
| Total consumer | 315,842 |
| 311,517 |
| 305,107 |
| 306,861 |
| 309,631 |
|
| Total loans |
| $3,778,106 |
|
| $3,730,339 |
|
| $3,738,469 |
|
| $3,680,360 |
|
| $3,556,203 |
|
| |
| (1) | Commercial real estate loans consist of commercial mortgages and construction and development loans. Commercial mortgages are loans secured by income producing property. |
| |
| (2) | Residential real estate loans consist of mortgage and homeowner construction loans secured by one- to four-family residential properties. |
|
| | | | | | | | | | | |
| | September 30, 2019 | | December 31, 2018 |
| | Balance |
| % of Total | | Balance | % of Total |
| Commercial Real Estate Loans by Property Location: | | | | | |
| Rhode Island |
| $378,337 |
| 25 | % | |
| $377,249 |
| 27 | % |
| Connecticut | 618,262 |
| 41 |
| | 570,116 |
| 41 |
|
| Massachusetts | 432,424 |
| 28 |
| | 356,615 |
| 26 |
|
| Subtotal | 1,429,023 |
| 94 |
| | 1,303,980 |
| 94 |
|
| All other states | 88,297 |
| 6 |
| | 88,428 |
| 6 |
|
| Total commercial real estate loans |
| $1,517,320 |
| 100 | % | |
| $1,392,408 |
| 100 | % |
| | | | | | |
| Residential Real Estate Loans by Property Location: | | | | | |
| Rhode Island |
| $347,847 |
| 25 | % |
|
| $352,141 |
| 26 | % |
| Connecticut | 142,744 |
| 11 |
|
| 141,775 |
| 10 |
|
| Massachusetts | 871,309 |
| 63 |
|
| 849,435 |
| 63 |
|
| Subtotal | 1,361,900 |
| 99 |
|
| 1,343,351 |
| 99 |
|
| All other states | 16,618 |
| 1 |
|
| 17,036 |
| 1 |
|
| Total residential real estate loans |
| $1,378,518 |
| 100 | % |
|
| $1,360,387 |
| 100 | % |
|
| | | | | | | | | | | | | | | |
| | Sep 30,
2019 | Jun 30,
2019 | Mar 31,
2019 | Dec 31,
2018 | Sep 30,
2018 |
| Deposits: | | | | | |
| Noninterest-bearing demand deposits |
| $619,839 |
|
| $587,326 |
|
| $577,319 |
|
| $603,216 |
|
| $611,829 |
|
| Interest-bearing demand deposits | 152,200 |
| 128,355 |
| 162,598 |
| 178,733 |
| 151,322 |
|
| NOW accounts | 478,462 |
| 484,615 |
| 471,682 |
| 466,568 |
| 468,578 |
|
| Money market accounts | 749,122 |
| 654,719 |
| 644,949 |
| 646,878 |
| 650,976 |
|
| Savings accounts | 362,868 |
| 365,069 |
| 371,248 |
| 373,545 |
| 372,425 |
|
| Time deposits (in-market) | 792,941 |
| 801,501 |
| 792,470 |
| 778,105 |
| 715,635 |
|
| In-market deposits | 3,155,432 |
| 3,021,585 |
| 3,020,266 |
| 3,047,045 |
| 2,970,765 |
|
| Wholesale brokered time deposits | 430,721 |
| 483,037 |
| 483,994 |
| 477,003 |
| 443,583 |
|
| Total deposits |
| $3,586,153 |
|
| $3,504,622 |
|
| $3,504,260 |
|
| $3,524,048 |
|
| $3,414,348 |
|
|
| | | | | | | | | | | | | | | |
| Washington Trust Bancorp, Inc. and Subsidiaries |
| CREDIT & ASSET QUALITY DATA |
| (Unaudited; Dollars in thousands) |
| | |
| | Sep 30,
2019 | Jun 30,
2019 | Mar 31,
2019 | Dec 31,
2018 | Sep 30,
2018 |
| Asset Quality Ratios: | | | | | |
| Nonperforming assets to total assets | 0.37 | % | 0.29 | % | 0.28 | % | 0.28 | % | 0.29 | % |
| Nonaccrual loans to total loans | 0.39 | % | 0.34 | % | 0.33 | % | 0.32 | % | 0.30 | % |
| Total past due loans to total loans | 0.38 | % | 0.48 | % | 0.39 | % | 0.37 | % | 0.38 | % |
| Allowance for loan losses to nonaccrual loans | 181.16 | % | 212.93 | % | 223.57 | % | 231.25 | % | 245.25 | % |
| Allowance for loan losses to total loans | 0.71 | % | 0.73 | % | 0.74 | % | 0.74 | % | 0.75 | % |
| | | | | | |
| Nonperforming Assets: | | | | | |
| Commercial real estate |
| $684 |
|
| $926 |
|
| $926 |
|
| $925 |
|
| $— |
|
| Commercial & industrial | — |
| — |
| — |
| — |
| 122 |
|
| Total commercial | 684 |
| 926 |
| 926 |
| 925 |
| 122 |
|
| Residential real estate | 12,531 |
| 10,610 |
| 10,032 |
| 9,346 |
| 9,063 |
|
| Home equity | 1,599 |
| 1,243 |
| 1,407 |
| 1,436 |
| 1,624 |
|
| Other consumer | 88 |
| 88 |
| — |
| — |
| — |
|
| Total consumer | 1,687 |
| 1,331 |
| 1,407 |
| 1,436 |
| 1,624 |
|
| Total nonaccrual loans | 14,902 |
| 12,867 |
| 12,365 |
| 11,707 |
| 10,809 |
|
| Other real estate owned | 4,142 |
| 2,142 |
| 2,142 |
| 2,142 |
| 2,974 |
|
| Total nonperforming assets |
| $19,044 |
|
| $15,009 |
|
| $14,507 |
|
| $13,849 |
|
| $13,783 |
|
| | | | | | |
| Past Due Loans (30 days or more past due): | | | | | |
| Commercial real estate |
| $684 |
|
| $3,670 |
|
| $926 |
|
| $1,080 |
|
| $931 |
|
| Commercial & industrial | 1 |
| 1 |
| 1 |
| — |
| 142 |
|
| Total commercial | 685 |
| 3,671 |
| 927 |
| 1,080 |
| 1,073 |
|
| Residential real estate | 11,599 |
| 11,237 |
| 10,849 |
| 10,520 |
| 9,398 |
|
| Home equity | 1,973 |
| 2,904 |
| 2,911 |
| 1,989 |
| 2,939 |
|
| Other consumer | 99 |
| 102 |
| 13 |
| 33 |
| 109 |
|
| Total consumer | 2,072 |
| 3,006 |
| 2,924 |
| 2,022 |
| 3,048 |
|
| Total past due loans |
| $14,356 |
|
| $17,914 |
|
| $14,700 |
|
| $13,622 |
|
| $13,519 |
|
| | | | | | |
| Accruing loans 90 days or more past due |
| $— |
|
| $— |
|
| $— |
|
| $— |
|
| $— |
|
| Nonaccrual loans included in past due loans |
| $9,797 |
|
| $8,581 |
|
| $8,563 |
|
| $8,613 |
|
| $6,425 |
|
|
| | | | | | | | | | | | | | | | | | | | | | |
| Washington Trust Bancorp, Inc. and Subsidiaries |
| CREDIT & ASSET QUALITY DATA |
| (Unaudited; Dollars in thousands) |
| | For the Three Months Ended | | For the Nine Months Ended |
| | Sep 30,
2019 | Jun 30,
2019 | Mar 31,
2019 | Dec 31,
2018 | Sep 30,
2018 | | Sep 30,
2019 | Sep 30,
2018 |
| Nonaccrual Loan Activity: | | | | | | | | |
| Balance at beginning of period |
| $12,867 |
|
| $12,365 |
|
| $11,707 |
|
| $10,809 |
|
| $11,745 |
| |
| $11,707 |
|
| $15,211 |
|
| Additions to nonaccrual status | 5,672 |
| 1,620 |
| 1,924 |
| 2,918 |
| 2,179 |
| | 9,216 |
| 5,846 |
|
| Loans returned to accruing status | (597 | ) | (118 | ) | (855 | ) | (1,500 | ) | (361 | ) | | (1,570 | ) | (1,180 | ) |
| Loans charged-off | (966 | ) | (819 | ) | (103 | ) | (298 | ) | (96 | ) | | (1,888 | ) | (889 | ) |
| Loans transferred to other real estate owned | (2,000 | ) | — |
| — |
| — |
| — |
| | (2,000 | ) | (3,074 | ) |
| Payments, payoffs and other changes | (74 | ) | (181 | ) | (308 | ) | (222 | ) | (2,658 | ) | | (563 | ) | (5,105 | ) |
| Balance at end of period |
| $14,902 |
|
| $12,867 |
|
| $12,365 |
|
| $11,707 |
|
| $10,809 |
| |
| $14,902 |
|
| $10,809 |
|
| | | | | | | | | |
| Allowance for Loan Losses: | | | | | | | | |
| Balance at beginning of period |
| $27,398 |
|
| $27,644 |
|
| $27,072 |
|
| $26,509 |
|
| $26,174 |
| |
| $27,072 |
|
| $26,488 |
|
| Provision charged to earnings | 400 |
| 525 |
| 650 |
| 800 |
| 350 |
| | 1,575 |
| 750 |
|
| Charge-offs | (966 | ) | (819 | ) | (103 | ) | (298 | ) | (96 | ) | | (1,888 | ) | (889 | ) |
| Recoveries | 165 |
| 48 |
| 25 |
| 61 |
| 81 |
| | 238 |
| 160 |
|
| Balance at end of period |
| $26,997 |
|
| $27,398 |
|
| $27,644 |
|
| $27,072 |
|
| $26,509 |
| |
| $26,997 |
|
| $26,509 |
|
| | | | | | | | | |
| Net Loan Charge-Offs (Recoveries): | | | | | | | | |
| Commercial real estate |
| $947 |
|
| $— |
|
| $— |
|
| $— |
|
| $— |
| |
| $947 |
|
| $602 |
|
| Commercial & industrial | (122 | ) | (16 | ) | 6 |
| (13 | ) | (70 | ) | | (132 | ) | (96 | ) |
| Total commercial | 825 |
| (16 | ) | 6 |
| (13 | ) | (70 | ) | | 815 |
| 506 |
|
| Residential real estate | — |
| 486 |
| — |
| 156 |
| 68 |
| | 486 |
| 73 |
|
| Home equity | (36 | ) | 289 |
| 48 |
| 65 |
| (2 | ) | | 301 |
| 99 |
|
| Other consumer | 12 |
| 12 |
| 24 |
| 29 |
| 19 |
| | 48 |
| 51 |
|
| Total consumer | (24 | ) | 301 |
| 72 |
| 94 |
| 17 |
| | 349 |
| 150 |
|
| Total |
| $801 |
|
| $771 |
|
| $78 |
|
| $237 |
|
| $15 |
| |
| $1,650 |
|
| $729 |
|
| | | | | | | | | |
| Net charge-offs to average loans (annualized) | 0.08 | % | 0.08 | % | 0.01 | % | 0.03 | % | — | % | | 0.06 | % | 0.03 | % |
The following table presents 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. 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 loans, as well as interest recognized on these loans, are included in amounts presented for loans.
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| Washington Trust Bancorp, Inc. and Subsidiaries |
| CONSOLIDATED AVERAGE BALANCE SHEETS (FTE Basis) |
| (Unaudited; Dollars in thousands) |
| For the Three Months Ended | September 30, 2019 | | June 30, 2019 | | Quarter Change |
| | Average Balance | Interest | Yield/ Rate | | Average Balance | Interest | Yield/ Rate | | Average Balance | Interest | Yield/
Rate |
| |
| Assets: | | | | | | | | | | | |
| Cash, federal funds sold and short-term investments |
| $96,231 |
|
| $493 |
| 2.03 | % | |
| $72,976 |
|
| $399 |
| 2.19 | % | |
| $23,255 |
|
| $94 |
| (0.16 | )% |
| Mortgage loans held for sale | 39,771 |
| 410 |
| 4.09 |
| | 28,532 |
| 288 |
| 4.05 |
| | 11,239 |
| 122 |
| 0.04 |
|
| Taxable debt securities | 920,910 |
| 6,318 |
| 2.72 |
| | 996,590 |
| 7,006 |
| 2.82 |
| | (75,680 | ) | (688 | ) | (0.10 | ) |
| Nontaxable debt securities | 75 |
| 3 |
| 15.87 |
| | 805 |
| 11 |
| 5.48 |
| | (730 | ) | (8 | ) | 10.39 |
|
| Total securities | 920,985 |
| 6,321 |
| 2.72 |
| | 997,395 |
| 7,017 |
| 2.82 |
| | (76,410 | ) | (696 | ) | (0.10 | ) |
| FHLB stock | 47,982 |
| 747 |
| 6.18 |
| | 49,574 |
| 720 |
| 5.83 |
| | (1,592 | ) | 27 |
| 0.35 |
|
| Commercial real estate | 1,490,878 |
| 17,314 |
| 4.61 |
| | 1,468,382 |
| 17,509 |
| 4.78 |
| | 22,496 |
| (195 | ) | (0.17 | ) |
| Commercial & industrial | 584,601 |
| 6,946 |
| 4.71 |
| | 606,835 |
| 7,482 |
| 4.95 |
| | (22,234 | ) | (536 | ) | (0.24 | ) |
| Total commercial | 2,075,479 |
| 24,260 |
| 4.64 |
| | 2,075,217 |
| 24,991 |
| 4.83 |
| | 262 |
| (731 | ) | (0.19 | ) |
| Residential real estate | 1,367,017 |
| 13,728 |
| 3.98 |
| | 1,350,865 |
| 13,606 |
| 4.04 |
| | 16,152 |
| 122 |
| (0.06 | ) |
| Home equity | 291,058 |
| 3,615 |
| 4.93 |
| | 284,195 |
| 3,579 |
| 5.05 |
| | 6,863 |
| 36 |
| (0.12 | ) |
| Other | 22,270 |
| 278 |
| 4.95 |
| | 24,189 |
| 292 |
| 4.84 |
| | (1,919 | ) | (14 | ) | 0.11 |
|
| Total consumer | 313,328 |
| 3,893 |
| 4.93 |
| | 308,384 |
| 3,871 |
| 5.03 |
| | 4,944 |
| 22 |
| (0.10 | ) |
| Total loans | 3,755,824 |
| 41,881 |
| 4.42 |
| | 3,734,466 |
| 42,468 |
| 4.56 |
| | 21,358 |
| (587 | ) | (0.14 | ) |
| Total interest-earning assets | 4,860,793 |
| 49,852 |
| 4.07 |
| | 4,882,943 |
| 50,892 |
| 4.18 |
| | (22,150 | ) | (1,040 | ) | (0.11 | ) |
| Noninterest-earning assets | 320,223 |
| | | | 288,619 |
| | | | 31,604 |
| | |
| Total assets |
| $5,181,016 |
| | | |
| $5,171,562 |
| | | |
| $9,454 |
| | |
| Liabilities and Shareholders' Equity: | | | | | | | | | | | |
| Interest-bearing demand deposits |
| $137,980 |
|
| $649 |
| 1.87 | % | |
| $129,334 |
|
| $624 |
| 1.94 | % | |
| $8,646 |
|
| $25 |
| (0.07 | )% |
| NOW accounts | 471,302 |
| 69 |
| 0.06 |
| | 462,217 |
| 75 |
| 0.07 |
| | 9,085 |
| (6 | ) | (0.01 | ) |
| Money market accounts | 699,138 |
| 2,094 |
| 1.19 |
| | 659,021 |
| 1,831 |
| 1.11 |
| | 40,117 |
| 263 |
| 0.08 |
|
| Savings accounts | 362,142 |
| 72 |
| 0.08 |
| | 366,449 |
| 71 |
| 0.08 |
| | (4,307 | ) | 1 |
| — |
|
| Time deposits (in-market) | 800,571 |
| 4,181 |
| 2.07 |
| | 796,606 |
| 3,992 |
| 2.01 |
| | 3,965 |
| 189 |
| 0.06 |
|
| Total interest-bearing in-market deposits | 2,471,133 |
| 7,065 |
| 1.13 |
| | 2,413,627 |
| 6,593 |
| 1.10 |
| | 57,506 |
| 472 |
| 0.03 |
|
| Wholesale brokered time deposits | 475,026 |
| 2,727 |
| 2.28 |
| | 507,376 |
| 2,876 |
| 2.27 |
| | (32,350 | ) | (149 | ) | 0.01 |
|
| Total interest-bearing deposits | 2,946,159 |
| 9,792 |
| 1.32 |
| | 2,921,003 |
| 9,469 |
| 1.30 |
| | 25,156 |
| 323 |
| 0.02 |
|
| FHLB advances | 980,091 |
| 6,512 |
| 2.64 |
| | 1,050,660 |
| 6,980 |
| 2.66 |
| | (70,569 | ) | (468 | ) | (0.02 | ) |
| Junior subordinated debentures | 22,681 |
| 245 |
| 4.29 |
| | 22,681 |
| 252 |
| 4.46 |
| | — |
| (7 | ) | (0.17 | ) |
| Total interest-bearing liabilities | 3,948,931 |
| 16,549 |
| 1.66 |
| | 3,994,344 |
| 16,701 |
| 1.68 |
| | (45,413 | ) | (152 | ) | (0.02 | ) |
| Noninterest-bearing demand deposits | 626,408 |
| | | | 608,099 |
| | | | 18,309 |
|
|
|
| Other liabilities | 115,480 |
| | | | 94,766 |
| | | | 20,714 |
|
|
|
| Shareholders' equity | 490,197 |
| | | | 474,353 |
| | | | 15,844 |
| | |
| Total liabilities and shareholders' equity |
| $5,181,016 |
| | | |
| $5,171,562 |
| | | |
| $9,454 |
| | |
| Net interest income (FTE) | |
| $33,303 |
| | | |
| $34,191 |
| | | |
| ($888 | ) | |
| Interest rate spread | | | 2.41 | % | | | | 2.50 | % | | | | (0.09 | )% |
| Net interest margin | | | 2.72 | % | | | | 2.81 | % | | | | (0.09 | )% |
Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:
|
| | | | | | | | | |
| For the Three Months Ended | Sep 30, 2019 | Jun 30, 2019 | Quarter Change |
| Commercial loans |
| $323 |
|
| $330 |
|
| ($7 | ) |
| Nontaxable debt securities | 2 |
| 3 |
| (1 | ) |
| Total |
| $325 |
|
| $333 |
|
| ($8 | ) |
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | |
| Washington Trust Bancorp, Inc. and Subsidiaries |
| CONSOLIDATED AVERAGE BALANCE SHEETS (FTE Basis) |
| (Unaudited; Dollars in thousands) |
| For the Nine Months Ended | September 30, 2019 | September 30, 2018 | Change |
| | Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/
Rate |
| |
| Assets: | | | | | | | | | |
| Cash, federal funds sold and short-term investments |
| $75,333 |
|
| $1,232 |
| 2.19 | % |
| $53,828 |
|
| $723 |
| 1.80 | % |
| $21,505 |
|
| $509 |
| 0.39 | % |
| Mortgage loans for sale | 28,379 |
| 878 |
| 4.14 |
| 29,770 |
| 923 |
| 4.15 |
| (1,391 | ) | (45 | ) | (0.01 | ) |
| Taxable debt securities | 972,511 |
| 20,550 |
| 2.83 |
| 817,274 |
| 15,859 |
| 2.59 |
| 155,237 |
| 4,691 |
| 0.24 |
|
| Nontaxable debt securities | 602 |
| 24 |
| 5.33 |
| 1,743 |
| 65 |
| 4.99 |
| (1,141 | ) | (41 | ) | 0.34 |
|
| Total securities | 973,113 |
| 20,574 |
| 2.83 |
| 819,017 |
| 15,924 |
| 2.60 |
| 154,096 |
| 4,650 |
| 0.23 |
|
| FHLB stock | 48,185 |
| 2,162 |
| 6.00 |
| 43,149 |
| 1,700 |
| 5.27 |
| 5,036 |
| 462 |
| 0.73 |
|
| Commercial real estate | 1,461,736 |
| 51,702 |
| 4.73 |
| 1,225,875 |
| 39,740 |
| 4.33 |
| 235,861 |
| 11,962 |
| 0.40 |
|
| Commercial & industrial | 603,143 |
| 21,972 |
| 4.87 |
| 624,563 |
| 22,113 |
| 4.73 |
| (21,420 | ) | (141 | ) | 0.14 |
|
| Total commercial | 2,064,879 |
| 73,674 |
| 4.77 |
| 1,850,438 |
| 61,853 |
| 4.47 |
| 214,441 |
| 11,821 |
| 0.30 |
|
| Residential real estate | 1,358,606 |
| 41,099 |
| 4.04 |
| 1,278,662 |
| 37,717 |
| 3.94 |
| 79,944 |
| 3,382 |
| 0.10 |
|
| Home equity | 284,657 |
| 10,757 |
| 5.05 |
| 285,143 |
| 9,908 |
| 4.65 |
| (486 | ) | 849 |
| 0.40 |
|
| Other | 24,017 |
| 887 |
| 4.94 |
| 29,328 |
| 1,073 |
| 4.89 |
| (5,311 | ) | (186 | ) | 0.05 |
|
| Total consumer | 308,674 |
| 11,644 |
| 5.04 |
| 314,471 |
| 10,981 |
| 4.67 |
| (5,797 | ) | 663 |
| 0.37 |
|
| Total loans | 3,732,159 |
| 126,417 |
| 4.53 |
| 3,443,571 |
| 110,551 |
| 4.29 |
| 288,588 |
| 15,866 |
| 0.24 |
|
| Total interest-earning assets | 4,857,169 |
| 151,263 |
| 4.16 |
| 4,389,335 |
| 129,821 |
| 3.95 |
| 467,834 |
| 21,442 |
| 0.21 |
|
| Noninterest-earning assets | 292,702 |
| | | 239,187 |
| | | 53,515 |
|
| |
| Total assets |
| $5,149,871 |
| | |
| $4,628,522 |
| | |
| $521,349 |
|
| |
| Liabilities and Shareholders' Equity: | | | | | | | | | |
| Interest-bearing demand deposits |
| $144,306 |
|
| $1,959 |
| 1.82 | % |
| $100,644 |
|
| $595 |
| 0.79 | % |
| $43,662 |
|
| $1,364 |
| 1.03 | % |
| NOW accounts | 462,856 |
| 228 |
| 0.07 |
| 456,083 |
| 215 |
| 0.06 |
| 6,773 |
| 13 |
| 0.01 |
|
| Money market accounts | 668,330 |
| 5,534 |
| 1.11 |
| 671,135 |
| 2,944 |
| 0.59 |
| (2,805 | ) | 2,590 |
| 0.52 |
|
| Savings accounts | 365,911 |
| 204 |
| 0.07 |
| 373,105 |
| 173 |
| 0.06 |
| (7,194 | ) | 31 |
| 0.01 |
|
| Time deposits (in-market) | 795,559 |
| 11,900 |
| 2.00 |
| 662,850 |
| 6,890 |
| 1.39 |
| 132,709 |
| 5,010 |
| 0.61 |
|
| Total interest-bearing in-market deposits | 2,436,962 |
| 19,825 |
| 1.09 |
| 2,263,817 |
| 10,817 |
| 0.64 |
| 173,145 |
| 9,008 |
| 0.45 |
|
| Wholesale brokered time deposits | 485,405 |
| 8,132 |
| 2.24 |
| 426,096 |
| 5,405 |
| 1.70 |
| 59,309 |
| 2,727 |
| 0.54 |
|
| Total interest-bearing deposits | 2,922,367 |
| 27,957 |
| 1.28 |
| 2,689,913 |
| 16,222 |
| 0.81 |
| 232,454 |
| 11,735 |
| 0.47 |
|
| FHLB advances | 1,019,172 |
| 20,153 |
| 2.64 |
| 846,359 |
| 13,627 |
| 2.15 |
| 172,813 |
| 6,526 |
| 0.49 |
|
| Junior subordinated debentures | 22,681 |
| 750 |
| 4.42 |
| 22,681 |
| 629 |
| 3.71 |
| — |
| 121 |
| 0.71 |
|
| Total interest-bearing liabilities | 3,964,220 |
| 48,860 |
| 1.65 |
| 3,558,953 |
| 30,478 |
| 1.14 |
| 405,267 |
| 18,382 |
| 0.51 |
|
| Noninterest-bearing demand deposits | 613,917 |
| | | 590,573 |
| | | 23,344 |
| | |
| Other liabilities | 98,012 |
| | | 61,042 |
| | | 36,970 |
| | |
| Shareholders' equity | 473,722 |
| | | 417,954 |
| | | 55,768 |
| | |
| Total liabilities and shareholders' equity |
| $5,149,871 |
| | |
| $4,628,522 |
| | |
| $521,349 |
| | |
| Net interest income (FTE) | |
| $102,403 |
| | |
| $99,343 |
| | |
| $3,060 |
| |
| Interest rate spread | | | 2.51 | % | | | 2.81 | % | | | (0.30 | )% |
| Net interest margin | | | 2.82 | % | | | 3.03 | % | | | (0.21 | )% |
Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:
|
| | | | | | | | | |
| | | | |
| For the Nine Months Ended | Sep 30, 2019 | Sep 30, 2018 | Change |
| Commercial loans |
| $977 |
|
| $918 |
|
| $59 |
|
| Nontaxable debt securities | 6 |
| 13 |
| (7 | ) |
| Total |
| $983 |
|
| $931 |
|
| $52 |
|
|
| | | | | | | | | | | | | | | |
| Washington Trust Bancorp, Inc. and Subsidiaries |
| SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures |
| (Unaudited; Dollars in thousands, except per share amounts) |
| | |
| | Sep 30,
2019 | Jun 30,
2019 | Mar 31,
2019 | Dec 31,
2018 | Sep 30,
2018 |
| Tangible Book Value per Share: | | | | | |
| Total shareholders' equity, as reported |
| $497,825 |
|
| $484,205 |
|
| $469,843 |
|
| $448,184 |
|
| $427,909 |
|
| Less: | | | | | |
| Goodwill | 63,909 |
| 63,909 |
| 63,909 |
| 63,909 |
| 63,909 |
|
| Identifiable intangible assets, net | 7,448 |
| 7,684 |
| 7,923 |
| 8,162 |
| 8,400 |
|
| Total tangible shareholders' equity |
| $426,468 |
|
| $412,612 |
|
| $398,011 |
|
| $376,113 |
|
| $355,600 |
|
| | | | | | |
| Shares outstanding, as reported | 17,338 |
| 17,336 |
| 17,305 |
| 17,302 |
| 17,290 |
|
| | | | | | |
| Book value per share - GAAP |
| $28.71 |
|
| $27.93 |
|
| $27.15 |
|
| $25.90 |
|
| $24.75 |
|
| Tangible book value per share - Non-GAAP |
| $24.60 |
|
| $23.80 |
|
| $23.00 |
|
| $21.74 |
|
| $20.57 |
|
| | | | | | |
| Tangible Equity to Tangible Assets: | | | | | |
| Total tangible shareholders' equity |
| $426,468 |
|
| $412,612 |
|
| $398,011 |
|
| $376,113 |
|
| $355,600 |
|
| | | | | | |
| Total assets, as reported |
| $5,198,878 |
|
| $5,189,672 |
|
| $5,154,729 |
|
| $5,010,766 |
|
| $4,770,672 |
|
| Less: | | | | | |
| Goodwill | 63,909 |
| 63,909 |
| 63,909 |
| 63,909 |
| 63,909 |
|
| Identifiable intangible assets, net | 7,448 |
| 7,684 |
| 7,923 |
| 8,162 |
| 8,400 |
|
| Total tangible assets |
| $5,127,521 |
|
| $5,118,079 |
|
| $5,082,897 |
|
| $4,938,695 |
|
| $4,698,363 |
|
| | | | | | |
| Equity to assets - GAAP | 9.58 | % | 9.33 | % | 9.11 | % | 8.94 | % | 8.97 | % |
| Tangible equity to tangible assets - Non-GAAP | 8.32 | % | 8.06 | % | 7.83 | % | 7.62 | % | 7.57 | % |
|
| | | | | | | | | | | | | | | | | | | | | | |
| | For the Three Months Ended | | For the Nine Months Ended |
| | Sep 30,
2019 | Jun 30,
2019 | Mar 31,
2019 | Dec 31,
2018 | Sep 30,
2018 | | Sep 30,
2019 | Sep 30,
2018 |
| Return on Average Tangible Assets: | | | | | | | | |
| Net income, as reported |
| $18,814 |
|
| $17,273 |
|
| $17,495 |
|
| $17,036 |
|
| $17,511 |
| |
| $53,582 |
|
| $51,396 |
|
| | | | | | | | | |
| Total average assets, as reported |
| $5,181,016 |
|
| $5,171,562 |
|
| $5,096,103 |
|
| $4,840,158 |
|
| $4,724,898 |
| |
| $5,149,871 |
|
| $4,628,522 |
|
| Less average balances of: | | | | | | | | |
| Goodwill | 63,909 |
| 63,909 |
| 63,909 |
| 63,909 |
| 63,909 |
| | 63,909 |
| 63,909 |
|
| Identifiable intangible assets, net | 7,562 |
| 7,800 |
| 8,040 |
| 8,278 |
| 8,519 |
| | 7,799 |
| 8,764 |
|
| Total average tangible assets |
| $5,109,545 |
|
| $5,099,853 |
|
| $5,024,154 |
|
| $4,767,971 |
|
| $4,652,470 |
| |
| $5,078,163 |
|
| $4,555,849 |
|
| | | | | | | | | |
| Return on average assets - GAAP | 1.44 | % | 1.34 | % | 1.39 | % | 1.40 | % | 1.47 | % | | 1.39 | % | 1.48 | % |
| Return on average tangible assets - Non-GAAP | 1.46 | % | 1.36 | % | 1.41 | % | 1.42 | % | 1.49 | % | | 1.41 | % | 1.51 | % |
| | | | | | | | | |
| Return on Average Tangible Equity: | | | | | | | | |
| Net income available to common shareholders, as reported |
| $18,778 |
|
| $17,238 |
|
| $17,461 |
|
| $17,004 |
|
| $17,475 |
| |
| $53,477 |
|
| $51,284 |
|
| | | | | | | | | |
| Total average equity, as reported |
| $490,197 |
|
| $474,353 |
|
| $456,241 |
|
| $432,043 |
|
| $426,306 |
| |
| $473,722 |
|
| $417,954 |
|
| Less average balances of: | | | | | | | | |
| Goodwill | 63,909 |
| 63,909 |
| 63,909 |
| 63,909 |
| 63,909 |
| | 63,909 |
| 63,909 |
|
| Identifiable intangible assets, net | 7,562 |
| 7,800 |
| 8,040 |
| 8,278 |
| 8,519 |
| | 7,799 |
| 8,764 |
|
| Total average tangible equity |
| $418,726 |
|
| $402,644 |
|
| $384,292 |
|
| $359,856 |
|
| $353,878 |
| |
| $402,014 |
|
| $345,281 |
|
| | | | | | | | | |
| Return on average equity - GAAP | 15.20 | % | 14.58 | % | 15.52 | % | 15.61 | % | 16.26 | % | | 15.09 | % | 16.41 | % |
| Return on average tangible equity - Non-GAAP | 17.79 | % | 17.17 | % | 18.43 | % | 18.75 | % | 19.59 | % | | 17.79 | % | 19.86 | % |
