WESTERLY, R.I., April 27, 2016 (GLOBE NEWSWIRE) -- Washington Trust Bancorp, Inc. (Nasdaq:WASH), parent company of The Washington Trust Company, today announced net income of $10.9 million, or $0.64 per diluted share, for the first quarter of 2016, up from net income of $10.7 million, or $0.62 per diluted share, reported for the fourth quarter of 2015.
"Washington Trust continued to post solid earnings in the latest quarter," stated Joseph J. MarcAurele, Washington Trust Chairman and CEO. "We recently opened a new retail branch on the East Side of Providence, Rhode Island, and have selected a site, and are awaiting regulatory approval, for a new mortgage banking office in Wellesley, Massachusetts. Our market expansion efforts, along with the continuing strength of our commercial, retail, mortgage banking and wealth management business lines, will help us to continue to achieve favorable results in future periods."
Selected highlights for the first quarter of 2016 include:
- Returns on average equity and average assets were solid at 11.50% and 1.16%, respectively. Comparable amounts for the fourth quarter of 2015 were 11.52% and 1.16%, respectively.
- Total loans stood at $3.0 billion at March 31, 2016, up by 1.1% in the quarter. Total loans were up by 5.8% from a year ago.
- Total deposits amounted to $2.9 billion at March 31, 2016, down by 1.9% in the quarter and up by 3.5% from a year ago.
- In March, Washington Trust declared a quarterly dividend of 36 cents per share, representing a $0.02 per share increase over the previous quarter and the sixth consecutive year of dividend increases.
Net Interest Income
Net interest income totaled $27.7 million for the first quarter of 2016, up by $1.5 million, or 6%, from the fourth quarter of 2015. The net interest margin was 3.24% for the first quarter of 2016, up 16 basis points from the previous quarter. Commercial loan prepayment fee income, which is included in net interest income, amounted to $1.0 million in the first quarter of 2016, compared to $73 thousand in the prior quarter. A significant portion of the latest quarter prepayment fee amount was attributable to one relationship. Excluding the loan prepayment fee income in each period, the first quarter net interest margin was 3.13%, up by 6 basis points on a linked quarter basis. This increase also reflects a modest benefit resulting from the increase in the short-term borrowing rate announced by the Federal Reserve in December 2015. Other significant linked quarter changes included:
- Average interest-earning assets increased by $60 million, largely due to growth in average balances of commercial loans. Loan prepayment fee income contributed 12 basis points to the yield on interest-earning assets in the first quarter of 2016, compared to 1 basis point in the prior quarter. Excluding the impact of prepayment fee income in each period, the yield on interest-earning assets was 3.72% for the first quarter, compared to 3.67% in the prior quarter.
- Average interest-bearing liabilities rose by $70 million, reflecting increases in average wholesale funding balances. The cost of interest-bearing funds was 0.74%, unchanged from the previous quarter.
Noninterest Income
Noninterest income totaled $14.6 million for the first quarter of 2016, down by $512 thousand, or 3%, from the fourth quarter of 2015. Significant linked quarter changes included:
- Wealth management revenues totaled $9.2 million for the first quarter, in-line with the previous quarter. Wealth management assets under administration amounted to $5.9 billion at March 31, 2016, up by $34 million, or 1%, on a linked quarter basis. Managed assets represented approximately 92% of total wealth management assets at March 31, 2016.
- Mortgage banking revenues totaled $2.2 million for the first quarter, down by $384 thousand, or 15%, on a linked quarter basis, reflecting a lower volume of loan sales sold to the secondary market. Residential mortgage loans sold to the secondary market amounted to $106.0 million in the first quarter, compared to $127.4 million in the previous quarter.
- Loan related derivative income amounted to $645 thousand in the first quarter, down by $107 thousand, or 14%, from the prior quarter.
Noninterest Expenses
Noninterest expenses totaled $25.5 million for the first quarter of 2016, up by $889 thousand, or 4%, from the prior quarter. Included in noninterest expenses for first quarter of 2016 was $431 thousand of debt prepayment penalty expense associated with the prepayment of $10.0 million in FHLBB advances. Excluding the debt prepayment penalty expense, noninterest expenses were up by $458 thousand, or 2%, from the fourth quarter. Salaries and employee benefit costs, the largest component of noninterest expenses, increased by $327 thousand from the prior quarter, reflecting an increase in payroll taxes associated with the start of the new calendar year.
Income tax expense amounted to $5.5 million for the first quarter of 2016, up by $138 thousand from the amount recognized in the previous quarter. The effective tax rate for the first quarter of 2016 was 33.4%, compared to 33.2% for the fourth quarter of 2015.
Loans
Total loans amounted to $3.0 billion at March 31, 2016, up by $34 million, or 1.1%, from the balance at the end of the fourth quarter. Significant linked quarter changes included:
- Total commercial loans increased by $44 million, or 2.7%, including growth of $46 million in the commercial real estate portfolio.
- The residential real estate loan portfolio declined by $9 million, or 0.9%.
- Consumer loans decreased by $1 million, or 0.3%.
Investment Securities
The securities portfolio amounted to $430 million at March 31, 2016, up by $35 million, or 8.9%, from the balance at December 31, 2015, primarily due to the purchases of $51 million of additional U.S. government agency and agency mortgage-backed debt securities, partially offset by calls, maturities and routine principal pay-downs. Investment securities were 11% of total assets as of March 31, 2016.
Deposits and Borrowings
Total deposits amounted to $2.9 billion at March 31, 2016, down by $55 million, or 1.9%, in the first quarter. Excluding wholesale brokered time deposits, in-market deposits decreased by $62 million, or 2.3%, in the quarter. The largest outflow during the quarter was $60 million of money market deposits, attributable to outflows in various institutional and commercial deposits.
FHLBB advances amounted to $487 million at March 31, 2016, up by $108 million, or 28.6%, from December 31, 2015. FHLBB advances totaling $10.0 million were prepaid in late March 2016. The weighted average rate of these advances was 2.72% with a weighted average remaining term of 32 months. These were replaced with $10.0 million of brokered time certificates of deposits with an 18-month maturity and a fixed interest rate of 0.95%. Net interest savings of $132 thousand for the remainder of 2016 are expected as a result of the extinguishment of the FHLBB advances.
Asset Quality
Total past due loans amounted to $18 million, or 0.60% of total loans, at March 31, 2016, compared to $18 million, or 0.58% of total loans, at December 31, 2015. Total nonaccrual loans declined from $21 million, or 0.70% of total loans, at December 31, 2015, to $17 million, or 0.57%, at March 31, 2016.
A loan loss provision totaling $500 thousand was charged to earnings in the first quarter of 2016, compared to a loan loss provision of $750 thousand recognized in the fourth quarter of 2015. Net charge-offs amounted to $1.4 million in the first quarter of 2016, including a $1.2 million charge-off associated with one commercial real estate relationship. Net charge-offs for the prior quarter amounted to $842 thousand. The allowance for loan losses was $26.1 million, or 0.86% of total loans, at March 31, 2016, compared to $27.1 million, or 0.90% of total loans, at December 31, 2015. The reduction in ratio of the allowance to total loans includes the impact of loan charge-offs for which loss exposure had been allocated prior to the latest quarter. The loan loss provision was based on management’s assessment of loss exposure, as well as loan loss allocations commensurate with loan portfolio growth in the quarter.
Capital and Dividends
Total shareholder's equity was $381 million at March 31, 2016, up by $6 million from December 31, 2015. Capital levels at March 31, 2016 exceeded the regulatory minimum levels to be considered well capitalized, with a total risk-based capital ratio of 12.45% at March 31, 2016, compared to 12.58% at December 31, 2015. At March 31, 2016, book value per share amounted to $22.40, up from $22.06 in the prior quarter.
The Board of Directors declared a quarterly dividend of 36 cents per share for the quarter ended March 31, 2016, a $0.02 increase from the prior quarter. The dividend was paid on April 14, 2016 to shareholders of record on April 1, 2016.
Conference Call
Washington Trust will host a conference call to discuss its first quarter results, business highlights and outlook on Wednesday, April 27, 2016 at 1:30 p.m. (Eastern Time). Individuals may dial in to the call at 1-877-407-0784. An audio replay of the call will be available, shortly after the conclusion of the call, by dialing 1-877-870-5176 and entering the Replay PIN Number 13634508; the audio replay will be available through May 4, 2016. 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 June 30, 2016.
Background
Washington Trust Bancorp, Inc. is the parent of The Washington Trust Company, a state-chartered bank headquartered in Westerly, Rhode Island. Founded in 1800, Washington Trust is the oldest community bank in the nation and is the largest independent bank headquartered in Rhode Island. Washington Trust offers a full range of financial services, including commercial banking, small business banking, personal banking, and wealth management and trust services through its offices located in Rhode Island, Connecticut and Massachusetts. The Corporation’s common stock trades on NASDAQ OMX® under the symbol WASH. Investor information is available on the Corporation’s web site: www.washtrustbancorp.com.
Forward-Looking Statements
This press release contains statements that are “forward-looking statements”. We may also make 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; additional government intervention in the U.S. financial system; 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; the ability to fully realize the expected financial results from the Halsey Associates, Inc. acquisition; 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, 2015, 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 and shares in thousands) | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | |||||||||||||||||||
| Assets: | ||||||||||||||||||||||||
| Cash and due from banks | $ | 89,966 | $ | 93,222 | $ | 106,445 | $ | 79,795 | $ | 84,842 | ||||||||||||||
| Short-term investments | 4,931 | 4,409 | 3,629 | 4,298 | 4,191 | |||||||||||||||||||
| Mortgage loans held for sale | 22,895 | 38,554 | 31,805 | 37,389 | 47,117 | |||||||||||||||||||
| Securities: | ||||||||||||||||||||||||
| Available for sale, at fair value | 411,352 | 375,044 | 323,795 | 351,378 | 340,942 | |||||||||||||||||||
| Held to maturity, at amortized cost | 19,040 | 20,023 | 21,140 | 22,523 | 24,025 | |||||||||||||||||||
| Total securities | 430,392 | 395,067 | 344,935 | 373,901 | 364,967 | |||||||||||||||||||
| Federal Home Loan Bank stock, at cost | 26,515 | 24,316 | 37,730 | 37,730 | 37,730 | |||||||||||||||||||
| Loans: | ||||||||||||||||||||||||
| Commercial | 1,698,811 | 1,654,547 | 1,579,854 | 1,583,537 | 1,559,523 | |||||||||||||||||||
| Residential real estate | 1,004,349 | 1,013,555 | 1,024,214 | 1,001,263 | 987,564 | |||||||||||||||||||
| Consumer | 343,833 | 345,025 | 345,850 | 343,784 | 333,505 | |||||||||||||||||||
| Total loans | 3,046,993 | 3,013,127 | 2,949,918 | 2,928,584 | 2,880,592 | |||||||||||||||||||
| Less allowance for loan losses | 26,137 | 27,069 | 27,161 | 27,587 | 27,810 | |||||||||||||||||||
| Net loans | 3,020,856 | 2,986,058 | 2,922,757 | 2,900,997 | 2,852,782 | |||||||||||||||||||
| Premises and equipment, net | 29,882 | 29,593 | 28,180 | 28,124 | 27,839 | |||||||||||||||||||
| Investment in bank-owned life insurance | 66,000 | 65,501 | 65,000 | 64,502 | 64,009 | |||||||||||||||||||
| Goodwill | 64,059 | 64,059 | 64,196 | 58,114 | 58,114 | |||||||||||||||||||
| Identifiable intangible assets, net | 11,137 | 11,460 | 11,793 | 4,539 | 4,694 | |||||||||||||||||||
| Other assets | 71,577 | 59,365 | 58,366 | 55,088 | 56,229 | |||||||||||||||||||
| Total assets | $ | 3,838,210 | $ | 3,771,604 | $ | 3,674,836 | $ | 3,644,477 | $ | 3,602,514 | ||||||||||||||
| Liabilities: | ||||||||||||||||||||||||
| Deposits: | ||||||||||||||||||||||||
| Demand deposits | $ | 539,119 | $ | 537,298 | $ | 513,856 | $ | 457,755 | $ | 477,046 | ||||||||||||||
| NOW accounts | 394,873 | 412,602 | 358,973 | 357,922 | 333,321 | |||||||||||||||||||
| Money market accounts | 763,565 | 823,490 | 855,858 | 789,334 | 821,353 | |||||||||||||||||||
| Savings accounts | 331,800 | 326,967 | 305,775 | 300,108 | 298,802 | |||||||||||||||||||
| Time deposits | 850,294 | 833,898 | 801,818 | 834,000 | 852,621 | |||||||||||||||||||
| Total deposits | 2,879,651 | 2,934,255 | 2,836,280 | 2,739,119 | 2,783,143 | |||||||||||||||||||
| Federal Home Loan Bank advances | 487,189 | 378,973 | 381,649 | 471,321 | 385,992 | |||||||||||||||||||
| Junior subordinated debentures | 22,681 | 22,681 | 22,681 | 22,681 | 22,681 | |||||||||||||||||||
| Other liabilities | 67,409 | 60,307 | 63,699 | 52,189 | 56,819 | |||||||||||||||||||
| Total liabilities | 3,456,930 | 3,396,216 | 3,304,309 | 3,285,310 | 3,248,635 | |||||||||||||||||||
| Shareholders’ Equity: | ||||||||||||||||||||||||
| Common stock | 1,064 | 1,064 | 1,062 | 1,052 | 1,048 | |||||||||||||||||||
| Paid-in capital | 111,641 | 110,949 | 109,724 | 103,408 | 102,587 | |||||||||||||||||||
| Retained earnings | 277,810 | 273,074 | 268,166 | 263,790 | 258,069 | |||||||||||||||||||
| Accumulated other comprehensive loss | (9,235 | ) | (9,699 | ) | (8,425 | ) | (9,083 | ) | (7,825 | ) | ||||||||||||||
| Total shareholders’ equity | 381,280 | 375,388 | 370,527 | 359,167 | 353,879 | |||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 3,838,210 | $ | 3,771,604 | $ | 3,674,836 | $ | 3,644,477 | $ | 3,602,514 | ||||||||||||||
| Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||||||||||
| FIVE QUARTER CONSOLIDATED STATEMENTS OF INCOME (unaudited) | |||||||||||||||||||||||||
| (Dollars and shares in thousands, except per share amounts) | |||||||||||||||||||||||||
| Three Months Ended | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | ||||||||||||||||||||
| Interest income: | |||||||||||||||||||||||||
| Interest and fees on loans | $ | 29,998 | $ | 28,511 | $ | 28,626 | $ | 28,739 | $ | 28,353 | |||||||||||||||
| Interest on securities: | Taxable | 2,370 | 2,262 | 2,178 | 2,176 | 2,259 | |||||||||||||||||||
| Nontaxable | 327 | 352 | 366 | 402 | 435 | ||||||||||||||||||||
| Dividends on Federal Home Loan Bank stock | 210 | 315 | 309 | 164 | 165 | ||||||||||||||||||||
| Other interest income | 64 | 37 | 47 | 29 | 25 | ||||||||||||||||||||
| Total interest and dividend income | 32,969 | 31,477 | 31,526 | 31,510 | 31,237 | ||||||||||||||||||||
| Interest expense: | |||||||||||||||||||||||||
| Deposits | 2,968 | 3,097 | 3,308 | 3,348 | 3,389 | ||||||||||||||||||||
| Federal Home Loan Bank advances | 2,152 | 1,966 | 1,987 | 1,891 | 1,902 | ||||||||||||||||||||
| Junior subordinated debentures | 112 | 157 | 232 | 241 | 241 | ||||||||||||||||||||
| Other interest expense | 2 | 2 | 2 | 2 | 3 | ||||||||||||||||||||
| Total interest expense | 5,234 | 5,222 | 5,529 | 5,482 | 5,535 | ||||||||||||||||||||
| Net interest income | 27,735 | 26,255 | 25,997 | 26,028 | 25,702 | ||||||||||||||||||||
| Provision for loan losses | 500 | 750 | 200 | 100 | — | ||||||||||||||||||||
| Net interest income after provision for loan losses | 27,235 | 25,505 | 25,797 | 25,928 | 25,702 | ||||||||||||||||||||
| Noninterest income: | |||||||||||||||||||||||||
| Wealth management revenues | 9,174 | 9,167 | 8,902 | 8,912 | 8,435 | ||||||||||||||||||||
| Mortgage banking revenues | 2,198 | 2,582 | 1,990 | 2,741 | 2,588 | ||||||||||||||||||||
| Service charges on deposit accounts | 907 | 971 | 986 | 973 | 935 | ||||||||||||||||||||
| Card interchange fees | 797 | 810 | 849 | 826 | 714 | ||||||||||||||||||||
| Income from bank-owned life insurance | 499 | 502 | 498 | 492 | 490 | ||||||||||||||||||||
| Loan related derivative income | 645 | 752 | 327 | 717 | 645 | ||||||||||||||||||||
| Equity in earnings (losses) of unconsolidated subsidiaries | (88 | ) | (69 | ) | (69 | ) | (69 | ) | (86 | ) | |||||||||||||||
| Other income | 502 | 431 | 430 | 669 | 299 | ||||||||||||||||||||
| Total noninterest income | 14,634 | 15,146 | 13,913 | 15,261 | 14,020 | ||||||||||||||||||||
| Noninterest expense: | |||||||||||||||||||||||||
| Salaries and employee benefits | 16,380 | 16,053 | 15,971 | 15,506 | 15,494 | ||||||||||||||||||||
| Net occupancy | 1,807 | 1,724 | 1,721 | 1,669 | 1,886 | ||||||||||||||||||||
| Equipment | 1,501 | 1,393 | 1,424 | 1,376 | 1,340 | ||||||||||||||||||||
| Outsourced services | 1,363 | 1,337 | 1,250 | 1,277 | 1,247 | ||||||||||||||||||||
| Legal, audit and professional fees | 629 | 825 | 630 | 610 | 676 | ||||||||||||||||||||
| FDIC deposit insurance costs | 493 | 470 | 467 | 436 | 473 | ||||||||||||||||||||
| Advertising and promotion | 265 | 325 | 356 | 578 | 267 | ||||||||||||||||||||
| Amortization of intangibles | 323 | 333 | 260 | 156 | 155 | ||||||||||||||||||||
| Debt prepayment penalties | 431 | — | — | — | — | ||||||||||||||||||||
| Acquisition related expenses | — | 52 | 504 | 433 | — | ||||||||||||||||||||
| Other expenses | 2,258 | 2,049 | 1,955 | 2,258 | 1,993 | ||||||||||||||||||||
| Total noninterest expense | 25,450 | 24,561 | 24,538 | 24,299 | 23,531 | ||||||||||||||||||||
| Income before income taxes | 16,419 | 16,090 | 15,172 | 16,890 | 16,191 | ||||||||||||||||||||
| Income tax expense | 5,484 | 5,346 | 4,964 | 5,387 | 5,181 | ||||||||||||||||||||
| Net income | $ | 10,935 | $ | 10,744 | $ | 10,208 | $ | 11,503 | $ | 11,010 | |||||||||||||||
| Net income available to common shareholders - basic | $ | 10,910 | $ | 10,718 | $ | 10,181 | $ | 11,469 | $ | 10,971 | |||||||||||||||
| Net income available to common shareholders - diluted | $ | 10,910 | $ | 10,718 | $ | 10,180 | $ | 11,470 | $ | 10,971 | |||||||||||||||
| Weighted average common shares outstanding - basic | 17,023 | 17,004 | 16,939 | 16,811 | 16,759 | ||||||||||||||||||||
| Weighted average common shares outstanding - diluted | 17,157 | 17,167 | 17,102 | 16,989 | 16,939 | ||||||||||||||||||||
| Per share information: | Basic earnings per common share | $ | 0.64 | $ | 0.63 | $ | 0.60 | $ | 0.68 | $ | 0.65 | ||||||||||||||
| Diluted earnings per common share | $ | 0.64 | $ | 0.62 | $ | 0.60 | $ | 0.68 | $ | 0.65 | |||||||||||||||
| Cash dividends declared per share | $ | 0.36 | $ | 0.34 | $ | 0.34 | $ | 0.34 | $ | 0.34 | |||||||||||||||
| Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||||
| SELECTED FINANCIAL HIGHLIGHTS (unaudited) | |||||||||||||||||||
| At or for the Three Months Ended | |||||||||||||||||||
| (Dollars and shares in thousands, except per share amounts) | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | ||||||||||||||
| Share and Equity Related Data: | |||||||||||||||||||
| Book value per share | $ | 22.40 | $ | 22.06 | $ | 21.82 | $ | 21.34 | $ | 21.10 | |||||||||
| Tangible book value per share - Non-GAAP (1) | $ | 17.98 | $ | 17.62 | $ | 17.36 | $ | 17.61 | $ | 17.35 | |||||||||
| Market value per share | $ | 37.32 | $ | 39.52 | $ | 38.45 | $ | 39.48 | $ | 38.19 | |||||||||
| Shares issued and outstanding at end of period | 17,024 | 17,020 | 16,985 | 16,834 | 16,773 | ||||||||||||||
| Performance Ratios: | |||||||||||||||||||
| Net interest margin (FTE) | 3.24 | % | 3.08 | % | 3.07 | % | 3.15 | % | 3.18 | % | |||||||||
| Return on average assets | 1.16 | % | 1.16 | % | 1.11 | % | 1.27 | % | 1.23 | % | |||||||||
| Return on average tangible assets - Non-GAAP (1) | 1.18 | % | 1.19 | % | 1.13 | % | 1.29 | % | 1.25 | % | |||||||||
| Return on average equity | 11.50 | % | 11.52 | % | 11.13 | % | 12.88 | % | 12.54 | % | |||||||||
| Return on average tangible equity - Non-GAAP (1) | 14.34 | % | 14.45 | % | 13.82 | % | 15.62 | % | 15.27 | % | |||||||||
| Capital Ratios: | |||||||||||||||||||
| Tier 1 risk-based capital | 11.56% (i) | 11.64 | % | 11.83 | % | 11.79 | % | 11.78 | % | ||||||||||
| Total risk-based capital | 12.45% (i) | 12.58 | % | 12.80 | % | 12.78 | % | 12.80 | % | ||||||||||
| Tier 1 leverage ratio | 9.31% (i) | 9.37 | % | 9.26 | % | 9.31 | % | 9.21 | % | ||||||||||
| Common equity tier 1 | 10.82% (i) | 10.89 | % | 11.05 | % | 11.00 | % | 10.98 | % | ||||||||||
| Equity to assets | 9.93 | % | 9.95 | % | 10.08 | % | 9.86 | % | 9.82 | % | |||||||||
| Tangible equity to tangible assets - Non-GAAP (1) | 8.13 | % | 8.11 | % | 8.18 | % | 8.28 | % | 8.22 | % | |||||||||
| (i) - estimated | |||||||||||||||||||
| Wealth Management Revenues: | |||||||||||||||||||
| Trust and investment management fees | $ | 8,065 | $ | 8,001 | $ | 7,768 | $ | 7,238 | $ | 7,142 | |||||||||
| Mutual fund fees | 843 | 952 | 989 | 1,032 | 1,036 | ||||||||||||||
| Asset-based revenues | 8,908 | 8,953 | 8,757 | 8,270 | 8,178 | ||||||||||||||
| Transaction-based revenues | 266 | 214 | 145 | 642 | 257 | ||||||||||||||
| Total wealth management revenues | $ | 9,174 | $ | 9,167 | $ | 8,902 | $ | 8,912 | $ | 8,435 | |||||||||
| Wealth Management Assets Under Administration: | |||||||||||||||||||
| Balance at beginning of period | $ | 5,844,636 | $ | 5,714,201 | $ | 5,211,548 | $ | 5,159,663 | $ | 5,069,966 | |||||||||
| Acquisition of Halsey Associates, Inc. (Aug. 1, 2015) | — | — | 839,994 | — | — | ||||||||||||||
| Net investment appreciation (depreciation) & income | 22,389 | 153,953 | (316,121 | ) | (13,932 | ) | 80,872 | ||||||||||||
| Net client cash flows | 11,942 | (23,518 | ) | (21,220 | ) | 65,817 | 8,825 | ||||||||||||
| Balance at end of period | $ | 5,878,967 | $ | 5,844,636 | $ | 5,714,201 | $ | 5,211,548 | $ | 5,159,663 | |||||||||
| Mortgage Banking Revenues: | |||||||||||||||||||
| Gains and commissions on residential loan sales, net | $ | 2,134 | $ | 2,528 | $ | 1,964 | $ | 2,748 | $ | 2,585 | |||||||||
| Residential mortgage servicing fee income, net | 64 | 54 | 26 | (7 | ) | 3 | |||||||||||||
| Total mortgage banking revenues | $ | 2,198 | $ | 2,582 | $ | 1,990 | $ | 2,741 | $ | 2,588 | |||||||||
| Residential Mortgage Loan Originations: | |||||||||||||||||||
| Originations for retention in portfolio | $ | 47,545 | $ | 38,080 | $ | 76,963 | $ | 65,134 | $ | 54,675 | |||||||||
| Originations for sale to the secondary market (2) | 90,458 | 134,125 | 126,353 | 134,360 | 128,996 | ||||||||||||||
| Total mortgage loan originations | $ | 138,003 | $ | 172,205 | $ | 203,316 | $ | 199,494 | $ | 183,671 | |||||||||
| Residential Mortgage Loans Sold: | |||||||||||||||||||
| Loans sold with servicing rights retained | $ | 26,454 | $ | 44,493 | $ | 37,782 | $ | 32,693 | $ | 47,256 | |||||||||
| Loans sold with servicing rights released (2) | 79,507 | 82,906 | 94,645 | 110,484 | 80,641 | ||||||||||||||
| Total mortgage loans sold | $ | 105,961 | $ | 127,399 | $ | 132,427 | $ | 143,177 | $ | 127,897 | |||||||||
(1) See the section labeled “Supplemental Information - Non-GAAP Financial Measures” at the end of this document.
(2) Also includes loans originated in a broker capacity.
| Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||||
| SELECTED FINANCIAL HIGHLIGHTS (unaudited) | |||||||||||||||||||
| At March 31, 2016 | |||||||||||||||||||
| Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||
| (Dollars in thousands) | Cost | Gains | Losses | Value | |||||||||||||||
| Securities Available for Sale: | |||||||||||||||||||
| Obligations of U.S. government-sponsored enterprises | $ | 97,151 | $ | 160 | $ | (26 | ) | $ | 97,285 | ||||||||||
| Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | 249,141 | 8,322 | — | 257,463 | |||||||||||||||
| Obligations of states and political subdivisions | 31,025 | 511 | — | 31,536 | |||||||||||||||
| Individual name issuer trust preferred debt securities | 29,824 | — | (6,743 | ) | 23,081 | ||||||||||||||
| Corporate bonds | 1,965 | 32 | (10 | ) | 1,987 | ||||||||||||||
| Total securities available for sale | 409,106 | 9,025 | (6,779 | ) | 411,352 | ||||||||||||||
| Held to Maturity: | |||||||||||||||||||
| Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | 19,040 | 624 | — | 19,664 | |||||||||||||||
| Total securities held to maturity | 19,040 | 624 | — | 19,664 | |||||||||||||||
| Total securities | $ | 428,146 | $ | 9,649 | $ | (6,779 | ) | $ | 431,016 | ||||||||||
| Period End Balances At | ||||||||||||||||||||||||
| (Dollars in thousands) | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | |||||||||||||||||||
| Commercial: | ||||||||||||||||||||||||
| Mortgages | $ | 976,931 | $ | 931,953 | $ | 873,767 | $ | 876,589 | $ | 865,042 | ||||||||||||||
| Construction & development | 123,032 | 122,297 | 121,857 | 110,989 | 89,851 | |||||||||||||||||||
| Commercial & industrial | 598,848 | 600,297 | 584,230 | 595,959 | 604,630 | |||||||||||||||||||
| Total commercial | 1,698,811 | 1,654,547 | 1,579,854 | 1,583,537 | 1,559,523 | |||||||||||||||||||
| Residential real estate: | ||||||||||||||||||||||||
| Mortgages | 980,274 | 984,437 | 994,808 | 971,705 | 954,905 | |||||||||||||||||||
| Homeowner construction | 24,075 | 29,118 | 29,406 | 29,558 | 32,659 | |||||||||||||||||||
| Mortgages | 1,004,349 | 1,013,555 | 1,024,214 | 1,001,263 | 987,564 | |||||||||||||||||||
| Consumer: | ||||||||||||||||||||||||
| Home equity lines | 258,513 | 255,565 | 252,862 | 249,845 | 239,537 | |||||||||||||||||||
| Home equity loans | 45,499 | 46,649 | 47,610 | 47,437 | 46,727 | |||||||||||||||||||
| Other | 39,821 | 42,811 | 45,378 | 46,502 | 47,241 | |||||||||||||||||||
| Total consumer | 343,833 | 345,025 | 345,850 | 343,784 | 333,505 | |||||||||||||||||||
| Total loans | $ | 3,046,993 | $ | 3,013,127 | $ | 2,949,918 | $ | 2,928,584 | $ | 2,880,592 | ||||||||||||||
| At March 31, 2016 | At December 31, 2015 | ||||||||||||||
| (Dollars in thousands) | Balance | % of Total | Balance | % of Total | |||||||||||
| Commercial Real Estate Loans by Property Location: | |||||||||||||||
| Rhode Island, Connecticut, Massachusetts | $ | 1,009,962 | 91.8 | % | $ | 959,883 | 91.0 | % | |||||||
| New York, New Jersey, Pennsylvania | 76,721 | 7.0 | % | 80,989 | 7.7 | % | |||||||||
| New Hampshire | 13,280 | 1.2 | % | 13,377 | 1.3 | % | |||||||||
| Total commercial real estate loans (1) | $ | 1,099,963 | 100.0 | % | $ | 1,054,249 | 100.0 | % | |||||||
| Residential Mortgages by Property Location: | |||||||||||||||
| Rhode Island, Connecticut, Massachusetts | $ | 987,695 | 98.4 | % | $ | 995,743 | 98.2 | % | |||||||
| New Hampshire | 9,517 | 0.9 | % | 10,186 | 1.0 | % | |||||||||
| New York, Virginia, New Jersey, Maryland, Pennsylvania | 3,753 | 0.4 | % | 4,163 | 0.4 | % | |||||||||
| Ohio | 1,488 | 0.1 | % | 1,557 | 0.2 | % | |||||||||
| Other | 1,896 | 0.2 | % | 1,906 | 0.2 | % | |||||||||
| Total residential mortgages | $ | 1,004,349 | 100.0 | % | $ | 1,013,555 | 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.
| Washington Trust Bancorp, Inc. and Subsidiaries | ||||||||||||||||||||||
| SELECTED FINANCIAL HIGHLIGHTS (unaudited) | ||||||||||||||||||||||
| Period End Balances At | ||||||||||||||||||||||
| (Dollars in thousands) | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | |||||||||||||||||
| Deposits: | ||||||||||||||||||||||
| Non-interest bearing demand deposits | $ | 464,639 | $ | 455,124 | $ | 462,115 | $ | 419,768 | $ | 419,063 | ||||||||||||
| Interest-bearing demand deposits | 74,480 | 82,174 | 51,741 | 37,987 | 57,983 | |||||||||||||||||
| NOW accounts | 394,873 | 412,602 | 358,973 | 357,922 | 333,321 | |||||||||||||||||
| Money market accounts | 763,565 | 823,490 | 855,858 | 789,334 | 821,353 | |||||||||||||||||
| Savings accounts | 331,800 | 326,967 | 305,775 | 300,108 | 298,802 | |||||||||||||||||
| Time deposits (in-market) | 540,815 | 531,419 | 534,266 | 549,410 | 561,758 | |||||||||||||||||
| Wholesale brokered time deposits | 309,479 | 302,479 | 267,552 | 284,590 | 290,863 | |||||||||||||||||
| Total deposits | $ | 2,879,651 | $ | 2,934,255 | $ | 2,836,280 | $ | 2,739,119 | $ | 2,783,143 | ||||||||||||
| Asset Quality Ratios: | ||||||||||||||||||||||
| Nonperforming assets to total assets | 0.49 | % | 0.58 | % | 0.48 | % | 0.45 | % | 0.48 | % | ||||||||||||
| Nonaccrual loans to total loans | 0.57 | % | 0.70 | % | 0.57 | % | 0.52 | % | 0.55 | % | ||||||||||||
| Allowance for loan losses to nonaccrual loans | 150.00 | % | 128.61 | % | 161.25 | % | 182.32 | % | 175.29 | % | ||||||||||||
| Allowance for loan losses to total loans | 0.86 | % | 0.90 | % | 0.92 | % | 0.94 | % | 0.97 | % | ||||||||||||
| Nonperforming Assets: | ||||||||||||||||||||||
| Commercial mortgages | $ | 4,054 | $ | 5,711 | $ | 4,915 | $ | 4,915 | $ | 5,115 | ||||||||||||
| Commercial construction & development | — | — | — | — | — | |||||||||||||||||
| Commercial & industrial | 2,659 | 3,018 | 1,137 | 1,039 | 2,193 | |||||||||||||||||
| Residential real estate mortgages | 9,367 | 10,666 | 9,472 | 7,411 | 6,956 | |||||||||||||||||
| Consumer | 1,345 | 1,652 | 1,320 | 1,766 | 1,601 | |||||||||||||||||
| Total nonaccrual loans | 17,425 | 21,047 | 16,844 | 15,131 | 15,865 | |||||||||||||||||
| Property acquired through foreclosure or repossession | 1,326 | 716 | 955 | 1,388 | 1,398 | |||||||||||||||||
| Total nonperforming assets | $ | 18,751 | $ | 21,763 | $ | 17,799 | $ | 16,519 | $ | 17,263 | ||||||||||||
| Three Months Ended | ||||||||||||||||||||||
| (Dollars in thousands) | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | |||||||||||||||||
| Nonaccrual Loan Activity: | ||||||||||||||||||||||
| Balance at beginning of period | $ | 21,047 | $ | 16,844 | $ | 15,131 | $ | 15,865 | $ | 15,945 | ||||||||||||
| Additions to nonaccrual status | 1,352 | 7,029 | 3,319 | 2,567 | 1,608 | |||||||||||||||||
| Loans returned to accruing status | (206 | ) | (303 | ) | (156 | ) | (1,756 | ) | (366 | ) | ||||||||||||
| Loans charged-off | (1,475 | ) | (904 | ) | (725 | ) | (355 | ) | (321 | ) | ||||||||||||
| Loans transferred to other real estate owned | (610 | ) | (716 | ) | — | (261 | ) | (230 | ) | |||||||||||||
| Payments, payoffs and other changes | (2,683 | ) | (903 | ) | (725 | ) | (929 | ) | (771 | ) | ||||||||||||
| Balance at end of period | $ | 17,425 | $ | 21,047 | $ | 16,844 | $ | 15,131 | $ | 15,865 | ||||||||||||
| Allowance for Loan Losses: | ||||||||||||||||||||||
| Balance at beginning of period | $ | 27,069 | $ | 27,161 | $ | 27,587 | $ | 27,810 | $ | 28,023 | ||||||||||||
| Provision charged to earnings | 500 | 750 | 200 | 100 | — | |||||||||||||||||
| Charge-offs | (1,475 | ) | (904 | ) | (725 | ) | (355 | ) | (321 | ) | ||||||||||||
| Recoveries | 43 | 62 | 99 | 32 | 108 | |||||||||||||||||
| Balance at end of period | $ | 26,137 | $ | 27,069 | $ | 27,161 | $ | 27,587 | $ | 27,810 | ||||||||||||
| Net Loan Charge-Offs (Recoveries): | ||||||||||||||||||||||
| Commercial mortgages | $ | 1,249 | $ | 405 | $ | (4 | ) | $ | 196 | $ | 120 | |||||||||||
| Commercial & industrial | (18 | ) | 217 | 348 | 26 | (7 | ) | |||||||||||||||
| Residential real estate mortgages | 134 | 117 | 12 | 4 | 46 | |||||||||||||||||
| Consumer | 67 | 103 | 270 | 97 | 54 | |||||||||||||||||
| Total | $ | 1,432 | $ | 842 | $ | 626 | $ | 323 | $ | 213 | ||||||||||||
| Net charge-offs to average loans (annualized) | 0.19 | % | 0.11 | % | 0.08 | % | 0.04 | % | 0.03 | % | ||||||||||||
| Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||||
| SELECTED FINANCIAL HIGHLIGHTS (unaudited) | |||||||||||||||||||
| Period End Balances At | |||||||||||||||||||
| (Dollars in thousands) | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | ||||||||||||||
| Past Due Loans: | |||||||||||||||||||
| Loans 30-59 Days Past Due: | |||||||||||||||||||
| Commercial mortgages | $ | 510 | $ | 51 | $ | 147 | $ | 14 | $ | 497 | |||||||||
| Commercial & industrial | 268 | 405 | 162 | 2,581 | 229 | ||||||||||||||
| Residential real estate mortgages | 2,695 | 3,028 | 3,610 | 5,120 | 4,470 | ||||||||||||||
| Consumer loans | 904 | 1,653 | 899 | 1,634 | 1,512 | ||||||||||||||
| Loans 30-59 days past due | $ | 4,377 | $ | 5,137 | $ | 4,818 | $ | 9,349 | $ | 6,708 | |||||||||
| Loans 60-89 Days Past Due: | |||||||||||||||||||
| Commercial mortgages | $ | — | $ | — | $ | — | $ | — | $ | 61 | |||||||||
| Commercial & industrial | 1,568 | 9 | 3,455 | 2,299 | 229 | ||||||||||||||
| Residential real estate mortgages | 2,026 | 2,964 | 2,458 | 913 | 1,352 | ||||||||||||||
| Consumer loans | 549 | 863 | 338 | 397 | 565 | ||||||||||||||
| Loans 60-89 days past due | $ | 4,143 | $ | 3,836 | $ | 6,251 | $ | 3,609 | $ | 2,207 | |||||||||
| Loans 90 Days or More Past Due: | |||||||||||||||||||
| Commercial mortgages | $ | 4,054 | $ | 4,504 | $ | 4,915 | $ | 4,915 | $ | 5,115 | |||||||||
| Commercial & industrial | 1,070 | 48 | 720 | 638 | 721 | ||||||||||||||
| Residential real estate mortgages | 3,982 | 3,294 | 4,499 | 4,871 | 3,607 | ||||||||||||||
| Consumer loans | 669 | 740 | 608 | 647 | 723 | ||||||||||||||
| Loans 90 days or more past due | $ | 9,775 | $ | 8,586 | $ | 10,742 | $ | 11,071 | $ | 10,166 | |||||||||
| Total Past Due Loans: | |||||||||||||||||||
| Commercial mortgages | $ | 4,564 | $ | 4,555 | $ | 5,062 | $ | 4,929 | $ | 5,673 | |||||||||
| Commercial & industrial | 2,906 | 462 | 4,337 | 5,518 | 1,179 | ||||||||||||||
| Residential real estate mortgages | 8,703 | 9,286 | 10,567 | 10,904 | 9,429 | ||||||||||||||
| Consumer loans | 2,122 | 3,256 | 1,845 | 2,678 | 2,800 | ||||||||||||||
| Total past due loans | $ | 18,295 | $ | 17,559 | $ | 21,811 | $ | 24,029 | $ | 19,081 | |||||||||
| Total past due loans to total loans | 0.60 | % | 0.58 | % | 0.74 | % | 0.82 | % | 0.66 | % | |||||||||
| Accruing loans 90 days or more past due | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
| Nonaccrual loans included in past due loans | $ | 14,030 | $ | 13,635 | $ | 13,964 | $ | 12,397 | $ | 12,314 | |||||||||
| Troubled Debt Restructured Loans: | |||||||||||||||||||
| Accruing troubled debt restructured loans: | |||||||||||||||||||
| Commercial mortgages | $ | 9,427 | $ | 9,430 | $ | 10,637 | $ | 9,448 | $ | 9,448 | |||||||||
| Commercial & industrial | 837 | 853 | 2,069 | 2,209 | 881 | ||||||||||||||
| Residential real estate mortgages | 646 | 669 | 674 | 679 | 684 | ||||||||||||||
| Consumer | 226 | 228 | 232 | 201 | 134 | ||||||||||||||
| Accruing troubled debt restructured loans | 11,136 | 11,180 | 13,612 | 12,537 | 11,147 | ||||||||||||||
| Nonaccrual troubled debt restructured loans: | |||||||||||||||||||
| Commercial mortgages | 4,054 | 5,296 | 4,498 | 4,498 | 4,698 | ||||||||||||||
| Commercial & industrial | 857 | 1,371 | 380 | 381 | 1,442 | ||||||||||||||
| Residential real estate mortgages | 586 | 596 | 613 | 92 | 338 | ||||||||||||||
| Consumer | — | — | — | 33 | 34 | ||||||||||||||
| Nonaccrual troubled debt restructured loans | 5,497 | 7,263 | 5,491 | 5,004 | 6,512 | ||||||||||||||
| Total troubled debt restructured loans | $ | 16,633 | $ | 18,443 | $ | 19,103 | $ | 17,541 | $ | 17,659 | |||||||||
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 and renegotiated 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 (unaudited) | |||||||||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||||||
| March 31, 2016 | December 31, 2015 | March 31, 2015 | |||||||||||||||||||||||||||||||
| Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | |||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||||||
| Assets: | |||||||||||||||||||||||||||||||||
| Commercial mortgages | $ | 933,939 | $ | 8,215 | 3.54 | % | $ | 885,967 | $ | 7,887 | 3.53 | % | $ | 851,946 | $ | 7,717 | 3.67 | % | |||||||||||||||
| Construction & development | 129,217 | 1,108 | 3.45 | % | 134,243 | 1,004 | 2.97 | % | 84,302 | 666 | 3.20 | % | |||||||||||||||||||||
| Commercial & industrial | 604,519 | 7,681 | 5.11 | % | 581,584 | 6,520 | 4.45 | % | 608,472 | 6,930 | 4.62 | % | |||||||||||||||||||||
| Total commercial loans | $ | 1,667,675 | $ | 17,004 | 4.10 | % | $ | 1,601,794 | $ | 15,411 | 3.82 | % | $ | 1,544,720 | $ | 15,313 | 4.02 | % | |||||||||||||||
| Residential real estate loans, including loans held for sale | 1,031,260 | 10,155 | 3.96 | % | 1,049,007 | 10,338 | 3.91 | % | 1,030,016 | 10,314 | 4.06 | % | |||||||||||||||||||||
| Consumer loans | 343,519 | 3,393 | 3.97 | % | 344,690 | 3,251 | 3.74 | % | 336,333 | 3,168 | 3.82 | % | |||||||||||||||||||||
| Total loans | 3,042,454 | 30,552 | 4.04 | % | 2,995,491 | 29,000 | 3.84 | % | 2,911,069 | 28,795 | 4.01 | % | |||||||||||||||||||||
| Cash, federal funds sold and short-term investments | 68,488 | 64 | 0.38 | % | 72,031 | 37 | 0.20 | % | 51,058 | 25 | 0.20 | % | |||||||||||||||||||||
| FHLBB stock | 25,597 | 210 | 3.30 | % | 24,316 | 315 | 5.14 | % | 37,730 | 165 | 1.77 | % | |||||||||||||||||||||
| Taxable debt securities | 359,060 | 2,370 | 2.65 | % | 341,130 | 2,262 | 2.63 | % | 322,570 | 2,259 | 2.84 | % | |||||||||||||||||||||
| Nontaxable debt securities | 33,313 | 507 | 6.12 | % | 35,799 | 550 | 6.10 | % | 44,659 | 664 | 6.03 | % | |||||||||||||||||||||
| Total securities | 392,373 | 2,877 | 2.95 | % | 376,929 | 2,812 | 2.96 | % | 367,229 | 2,923 | 3.23 | % | |||||||||||||||||||||
| Total interest-earning assets | 3,528,912 | 33,703 | 3.84 | % | 3,468,767 | 32,164 | 3.68 | % | 3,367,086 | 31,908 | 3.84 | % | |||||||||||||||||||||
| Noninterest-earning assets | 240,113 | 231,674 | 221,795 | ||||||||||||||||||||||||||||||
| Total assets | $ | 3,769,025 | $ | 3,700,441 | $ | 3,588,881 | |||||||||||||||||||||||||||
| Liabilities and Shareholders' Equity: | |||||||||||||||||||||||||||||||||
| Interest-bearing demand deposits | $ | 50,704 | $ | 13 | 0.10 | % | $ | 42,324 | $ | 11 | 0.10 | % | $ | 37,851 | $ | 8 | 0.09 | % | |||||||||||||||
| NOW accounts | 386,488 | 56 | 0.06 | % | 376,185 | 56 | 0.06 | % | 329,588 | 48 | 0.06 | % | |||||||||||||||||||||
| Money market accounts | 786,633 | 515 | 0.26 | % | 856,405 | 707 | 0.33 | % | 800,036 | 883 | 0.45 | % | |||||||||||||||||||||
| Savings accounts | 328,174 | 49 | 0.06 | % | 310,608 | 47 | 0.06 | % | 293,926 | 46 | 0.06 | % | |||||||||||||||||||||
| Time deposits (in-market) | 538,035 | 1,315 | 0.98 | % | 533,224 | 1,333 | 0.99 | % | 567,063 | 1,469 | 1.05 | % | |||||||||||||||||||||
| Wholesale brokered time deposits | 296,801 | 1,020 | 1.38 | % | 277,681 | 943 | 1.35 | % | 294,664 | 935 | 1.29 | % | |||||||||||||||||||||
| FHLBB advances | 453,019 | 2,152 | 1.91 | % | 373,652 | 1,966 | 2.09 | % | 404,773 | 1,902 | 1.91 | % | |||||||||||||||||||||
| Junior subordinated debentures | 22,681 | 112 | 1.99 | % | 22,681 | 157 | 2.75 | % | 22,681 | 241 | 4.31 | % | |||||||||||||||||||||
| Other | 79 | 2 | 10.18 | % | 92 | 2 | 8.62 | % | 128 | 3 | 9.51 | % | |||||||||||||||||||||
| Total interest-bearing liabilities | 2,862,614 | 5,234 | 0.74 | % | 2,792,852 | 5,222 | 0.74 | % | 2,750,710 | 5,535 | 0.82 | % | |||||||||||||||||||||
| Demand deposits | 471,782 | 475,215 | 438,904 | ||||||||||||||||||||||||||||||
| Other liabilities | 54,287 | 59,177 | 48,052 | ||||||||||||||||||||||||||||||
| Shareholders' equity | 380,342 | 373,197 | 351,215 | ||||||||||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 3,769,025 | $ | 3,700,441 | $ | 3,588,881 | |||||||||||||||||||||||||||
| Net interest income (FTE) | $ | 28,469 | $ | 26,942 | $ | 26,373 | |||||||||||||||||||||||||||
| Interest rate spread | 3.10 | % | 2.94 | % | 3.02 | % | |||||||||||||||||||||||||||
| Net interest margin | 3.24 | % | 3.08 | % | 3.18 | % | |||||||||||||||||||||||||||
Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:
| (Dollars in thousands) | Three Months Ended | |||||||||||||
| Mar 31, 2016 | Dec 31, 2015 | Mar 31, 2015 | ||||||||||||
| Commercial loans | $ | 554 | $ | 489 | $ | 442 | ||||||||
| Nontaxable debt securities | 180 | 198 | 229 | |||||||||||
| Total | $ | 734 | $ | 687 | $ | 671 | ||||||||
| Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||||
| SUPPLEMENTAL INFORMATION - Non-GAAP Financial Measures (unaudited) | |||||||||||||||||||
| At or for the Three Months Ended | |||||||||||||||||||
| (Dollars in thousands, except per share amounts) | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | ||||||||||||||
| Calculation of Tangible Book Value per Share: | |||||||||||||||||||
| Total shareholders' equity at end of period | $ | 381,280 | $ | 375,388 | $ | 370,527 | $ | 359,167 | $ | 353,879 | |||||||||
| Less: | |||||||||||||||||||
| Goodwill | 64,059 | 64,059 | 64,196 | 58,114 | 58,114 | ||||||||||||||
| Identifiable intangible assets, net | 11,137 | 11,460 | 11,793 | 4,539 | 4,694 | ||||||||||||||
| Total tangible shareholders' equity at end of period | $ | 306,084 | $ | 299,869 | $ | 294,538 | $ | 296,514 | $ | 291,071 | |||||||||
| Shares outstanding at end of period | 17,024 | 17,020 | 16,985 | 16,834 | 16,773 | ||||||||||||||
| Book value per share - GAAP | $ | 22.40 | $ | 22.06 | $ | 21.82 | $ | 21.34 | $ | 21.10 | |||||||||
| Tangible book value per share - Non-GAAP | $ | 17.98 | $ | 17.62 | $ | 17.34 | $ | 17.61 | $ | 17.35 | |||||||||
| Calculation of Tangible Equity to Tangible Assets: | |||||||||||||||||||
| Total tangible shareholders' equity at end of period | $ | 306,084 | $ | 299,869 | $ | 294,538 | $ | 296,514 | $ | 291,071 | |||||||||
| Total assets at end of period | $ | 3,838,210 | $ | 3,771,604 | $ | 3,674,836 | $ | 3,644,477 | $ | 3,602,514 | |||||||||
| Less: | |||||||||||||||||||
| Goodwill | 64,059 | 64,059 | 64,196 | 58,114 | 58,114 | ||||||||||||||
| Identifiable intangible assets, net | 11,137 | 11,460 | 11,793 | 4,539 | 4,694 | ||||||||||||||
| Total tangible assets at end of period | $ | 3,763,014 | $ | 3,696,085 | $ | 3,598,847 | $ | 3,581,824 | $ | 3,539,706 | |||||||||
| Equity to assets - GAAP | 9.93 | % | 9.95 | % | 10.08 | % | 9.86 | % | 9.82 | % | |||||||||
| Tangible equity to tangible assets - Non-GAAP | 8.13 | % | 8.11 | % | 8.18 | % | 8.28 | % | 8.22 | % | |||||||||
| Calculation of Return on Average Tangible Assets: | |||||||||||||||||||
| Net income | $ | 10,935 | $ | 10,744 | $ | 10,208 | $ | 11,503 | $ | 11,010 | |||||||||
| Total average assets | $ | 3,769,025 | $ | 3,700,441 | $ | 3,678,487 | $ | 3,622,715 | $ | 3,588,881 | |||||||||
| Less: | |||||||||||||||||||
| Average goodwill | 64,059 | 64,194 | 62,524 | 58,114 | 58,114 | ||||||||||||||
| Average identifiable intangible assets, net | 11,294 | 11,616 | 8,768 | 4,614 | 4,770 | ||||||||||||||
| Total average tangible assets | $ | 3,693,672 | $ | 3,624,631 | $ | 3,607,195 | $ | 3,559,987 | $ | 3,525,997 | |||||||||
| Return on average assets - GAAP | 1.16 | % | 1.16 | % | 1.11 | % | 1.27 | % | 1.23 | % | |||||||||
| Return on average tangible assets - Non-GAAP | 1.18 | % | 1.19 | % | 1.13 | % | 1.29 | % | 1.25 | % | |||||||||
| Calculation of Return on Average Tangible Equity: | |||||||||||||||||||
| Net income | $ | 10,935 | $ | 10,744 | $ | 10,208 | $ | 11,503 | $ | 11,010 | |||||||||
| Total average shareholders' equity | $ | 380,342 | $ | 373,197 | $ | 366,724 | $ | 357,365 | $ | 351,215 | |||||||||
| Less: | |||||||||||||||||||
| Average goodwill | 64,059 | 64,194 | 62,524 | 58,114 | 58,114 | ||||||||||||||
| Average identifiable intangible assets, net | 11,294 | 11,616 | 8,768 | 4,614 | 4,770 | ||||||||||||||
| Total average tangible shareholders' equity | $ | 304,989 | $ | 297,387 | $ | 295,432 | $ | 294,637 | $ | 288,331 | |||||||||
| Return on average shareholders' equity - GAAP | 11.50 | % | 11.52 | % | 11.13 | % | 12.88 | % | 12.54 | % | |||||||||
| Return on average tangible shareholders' equity - Non-GAAP | 14.34 | % | 14.45 | % | 13.82 | % | 15.62 | % | 15.27 | % | |||||||||