Exhibit 99.1
NASDAQ: WASH
Contact: Elizabeth B. Eckel
Senior Vice President, Marketing
Telephone: (401) 348-1309
E-mail: ebeckel@washtrust.com
Date: April 22, 2013
FOR IMMEDIATE RELEASE
Washington Trust Announces First Quarter 2013 Results
Westerly, Rhode Island…Washington Trust Bancorp, Inc. (NASDAQ Global Select; symbol: WASH), parent company of The Washington Trust Company, today announced first quarter 2013 net income of $7.4 million, or 45 cents per diluted share. These results compare to fourth quarter 2012 net income of $9.0 million, or 55 cents per diluted share, and first quarter 2012 net income of $8.4 million, or 51 cents per diluted share.
Included in first quarter 2013 results was the recognition of a $2.8 million impairment charge to earnings on a trust preferred collateralized debt obligation investment security. The net after-tax impact of this was $1.9 million, or 11 cents per diluted share. Further information on this matter is provided later in this press release.
“Washington Trust achieved solid commercial loan growth and strong mortgage production in the first quarter of 2013,” stated Joseph J. MarcAurele, Washington Trust Chairman, President, and Chief Executive Officer. “We are continuing to focus on strategies that create business line growth, generate revenues, and enhance company value.”
Selected financial highlights for the first quarter of 2013 included:
• | Residential mortgage origination volume and mortgage banking revenues remain strong. Net gains on loan sales and commissions on loans originated for others totaled $4.2 million for the quarter, down by 7% from the record high level in fourth quarter 2012, but up by 35% over the first quarter in 2012. |
• | Loans totaled $2.33 billion at March 31, 2013, up by $31.0 million from December 31, 2012, primarily due to growth in the commercial real estate loan portfolio of $25.5 million. |
• | Total deposits amounted to $2.32 billion at March 31, 2013, up by $7.0 million from December 31, 2012, with growth in lower-cost deposits. |
Net Interest Income
First quarter 2013 net interest income totaled $22.5 million, a decrease of $697 thousand from the fourth quarter of 2012. Included in fourth quarter 2012 results was a large prepayment penalty fee income item of $357 thousand. Excluding this item, net interest income declined by $340 thousand, or 1%, on a linked quarter basis.
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Washington Trust
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The net interest margin for the first quarter of 2013 was 3.32%, compared to 3.33% for the fourth quarter of 2012 and 3.27% for the first quarter of 2012. Excluding the prepayment penalty fee income item, the fourth quarter 2012 net interest margin was 3.28%. On this basis, the linked quarter increase in net interest margin reflects a reduction in the cost of funds, offset to a lesser extent by a decline of yield on loans.
Average interest-earning assets for the first quarter of 2013 decreased by $20.5 million from the previous quarter and decreased by $9.2 million from the first quarter of 2012, reflecting payments received on mortgage-backed securities in the securities portfolio, offset, in part, by loan growth.
An other-than-temporary-impairment charge to earnings of $2.8 million was recognized in the first quarter of 2013 on a trust preferred collateralized debt obligation (“CDO”) investment security holding. On March 22, 2013, the trustee for the CDO entity issued a notice that a liquidation of the CDO entity, Tropic CDO I, Ltd., will take place at the direction of holders of the CDO tranches that are senior to certain subordinate tranches, of which Washington Trust is a note holder. The estimated proceeds from the liquidation event are expected to be insufficient to satisfy the amount owed to the note holders of the CDO's subordinate tranches. The Corporation had recognized other-than-temporary impairment charges amounting to $2.1 million on this security in years prior to 2013; however, prior to the March 2013 announcement of the liquidation event, the expected future cash flows through the maturity of the CDO in the year 2033 were considered to be sufficient to recover the Corporation's remaining $2.8 million amortized cost. The first quarter impairment loss reduces the Corporation's carrying value in the holding to zero. The security had been classified in nonaccruing status with no interest recognition since 2009. The recognition of the first quarter impairment charge and related reduction of fair value to zero resulted in a modest reduction to equity capital of approximately $400 thousand, which is a reduction of 2 cents in book value per share.
Noninterest Income
Noninterest income totaled $13.2 million, compared to $17.9 million in the previous quarter and $14.2 million in the first quarter of 2012. The fourth quarter 2012 results included net realized gains on sales of securities of $924 thousand and two significant insurance commissions totaling $462 thousand. Excluding the other-than-temporary impairment charges and the fourth quarter 2012 net gains on sales of securities and the insurance commissions, noninterest income declined by 3% on a linked quarter basis. Significant changes in noninterest income included the following:
• | Mortgage banking revenues decreased by $310 thousand, or 7%, from the fourth quarter of 2012 and up by $1.1 million, or 35%, from the first quarter of 2012. |
• | Wealth management revenues were $7.5 million in the first quarter of 2013. Excluding the recognition of the two significant insurance commission items from the fourth quarter, wealth management revenues were up by $146 thousand, or 2%, on a linked quarter basis and up by $289 thousand, or 4%, compared to the first quarter of 2012. |
• | Merchant processing fees totaled $2.0 million for the first quarter of 2013, down by $255 thousand, or 11%, on a linked quarter basis and remained relatively flat compared to the first quarter of 2012. The decline reflects a seasonal decrease in the volume of transactions processed for customers. See discussion on the corresponding linked quarter decrease in merchant processing costs under the caption “Noninterest Expenses.” |
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Washington Trust
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Noninterest Expenses
Noninterest expenses totaled $24.2 million for the first quarter of 2013, down by $3.2 million, or 12%, from the previous quarter and up by $785 thousand, or 3%, from the first quarter of 2012. Included in noninterest expenses in the fourth quarter were debt prepayment penalties of $1.8 million and charitable contribution expense of $400 thousand. Excluding these items, noninterest expenses for the first quarter of 2013 decreased by $1.1 million, or 4%, from the fourth quarter of 2012. Significant changes in noninterest income included the following:
• | Salaries and employee benefit costs amounted to $15.4 million in the first quarter of 2013, down by $219 thousand on a linked quarter basis and up by $1.0 million, or 7%, from the first quarter of 2012. The year over year increase reflects higher staffing levels to support growth and higher levels of business development based compensation in mortgage banking and other areas. |
• | Merchant processing costs totaled $1.7 million in the first quarter of 2013, a decline of $230 thousand, or 12%, on a linked quarter basis but remained relatively flat compared to the first quarter of 2012. See the discussion above regarding the corresponding linked quarter decrease in merchant processing fee income. |
Income tax expense amounted to $3.4 million for the first quarter of 2013, compared to $4.0 million for the fourth quarter of 2012 and $3.9 million for the first quarter of 2012. The effective tax rate for the first quarter of 2013 was 31.6%, compared to the overall effective income tax rate for the year 2012 of 31.1%.
Asset Quality
Total nonaccrual loans amounted to $25.7 million, or 1.10% of total loans, at March 31, 2013, up by $3.1 million from December 31, 2012. The increase in nonaccrual loans during the first quarter was principally due to the classification of one commercial real estate loan with a carrying value of $5.1 million into nonaccrual status. This loan was current with respect to contractual payment terms at March 31, 2013. Total past due loans amounted to $26.2 million, or 1.13% of total loans, at March 31, 2013, down by $1.9 million from December 31, 2012.
The loan loss provision charged to earnings amounted to $600 thousand for the first quarter of 2013, level with the fourth quarter of 2012 and down by $300 thousand from the first quarter of 2012. Net charge-offs amounted to $334 thousand in the first quarter of 2013, compared to net charge-offs of $479 thousand in the fourth quarter of 2012 and $657 thousand in the first quarter of 2012.
The allowance for loan losses was $31.1 million, or 1.34% of total loans, at March 31, 2013 compared to $30.9 million, or 1.35% of total loans, at December 31, 2012.
Loans
Total loans rose by $31.0 million in the first quarter of 2013, with increases in commercial loans of $24.7 million, or 2%, and residential loans of $6.7 million, or 1%. Total loans were up by $169.7 million, or 8%, from March 31, 2012, including a 12% increase in commercial loans.
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Washington Trust
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Investment Securities
The investment securities portfolio amounted to $387.1 million at March 31, 2013, down by $28.8 million from December 31, 2012, primarily due to principal payments received on mortgage-backed securities which were not reinvested in the securities portfolio.
Deposits and Borrowings
Total deposits increased by $7.0 million in the first quarter of 2013, reflecting growth in lower-cost non-time categories of deposits. In the last twelve months, total deposits grew by $174.1 million, or 8%. FHLBB advances totaled $341.2 million at March 31, 2013, down by $20.0 million from December 31, 2012. This decline reflects less demand for wholesale funding due to paydowns on mortgage-backed securities, which have not been reinvested into the securities portfolio and the deposit growth during this period.
Capital Management
Capital levels continued to exceed the regulatory minimum levels to be considered well capitalized, with a total risk-based capital ratio of 13.50% at March 31, 2013, compared to 13.26% at December 31, 2012. Total shareholder's equity was $301.3 million at March 31, 2013, up by $5.6 million from the balance at December 31, 2012.
Dividends Declared
The Board of Directors declared a quarterly dividend of 25 cents per share for the quarter ended March 31, 2013. The dividend was paid on April 12, 2013 to shareholders of record on April 1, 2013. This represented a one cent increase over the dividend paid last quarter and was the Corporation’s third dividend increase since March 2012.
Conference Call
Washington Trust will host a conference call on Monday, April 22, 2013 at 10:30 am Eastern Time to discuss first quarter results and business outlook. This call is being webcast and can be accessed through the Investor Relations section of the Washington Trust web site, www.washtrust.com. Individuals may dial in to the call at 1-866-250-8117. The international dial-in number is 1-412-317-6011 and the Canada dial-in number is 1-855-669-9657. A replay of the call will be posted in this same location on the web site shortly after the conclusion of the call. To listen to the replay, dial 1-877-344-7529. For international access, dial 1-412-317-0088. The Conference Number for replay is 10027102. The replay will be available until 9:00 a.m. on May 7, 2013.
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Washington Trust
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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 The NASDAQ Global Select® Stock Market under the symbol WASH. Investor information is available on the Corporation’s web site: www.washtrust.com.
Forward-Looking Statements
This press release contains statements that are “forward-looking statements”. We may also make written or oral forward-looking statements in other documents we file with the SEC, in 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 the control of Washington Trust. These risks, uncertainties and other factors may cause the actual results, performance or achievements of Washington Trust to be materially different from the anticipated future results, performance or achievements expressed or implied by the forward-looking statements.
Some of the factors that might cause these differences include the following: continued weakness in general national, regional or international economic conditions or conditions affecting the banking or financial services industries or financial capital markets, volatility and disruption in national and international financial markets, 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 Washington Trust's competition, changes in legislation or regulation and accounting principles, policies and guidelines, and changes in the assumptions used in making such forward-looking statements. In addition, the factors described under “Risk Factors” in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2012, as filed with the Securities and Exchange Commission and as updated by our Quarterly Reports on Form 10-Q, may result in these differences. You should carefully review all of these factors, and you should be aware that there may be other factors that could cause these differences. These forward-looking statements were based on information, plans and estimates at the date of this press release, and Washington Trust assumes no obligation to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes.
Supplemental Information - Explanation of Non-GAAP Financial Measures
In addition to results presented in accordance with generally accepted accounting principles (“GAAP”), this press release contains certain non-GAAP financial measures. Washington Trust's management believes that the supplemental non-GAAP information, which consists of measurements and ratios based on tangible equity and tangible assets, is utilized by regulators and market analysts to evaluate a company's financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.
Washington Trust Bancorp, Inc. and Subsidiaries | ||||||||
CONSOLIDATED BALANCE SHEETS (unaudited) | ||||||||
(Dollars in thousands, except par value) | Mar 31, 2013 | Dec 31, 2012 | ||||||
Assets: | ||||||||
Cash and due from banks | $80,616 | $73,474 | ||||||
Short-term investments | 18,418 | 19,176 | ||||||
Mortgage loans held for sale, at fair value; amortized cost $27,274 in 2013 and $48,370 in 2012 | 27,899 | 50,056 | ||||||
Securities: | ||||||||
Available for sale, at fair value; amortized cost $336,954 in 2013 and $363,408 in 2012 | 350,205 | 375,498 | ||||||
Held to maturity, at cost; fair value $37,804 in 2013 and $41,420 in 2012 | 36,897 | 40,381 | ||||||
Total securities | 387,102 | 415,879 | ||||||
Federal Home Loan Bank stock, at cost | 37,730 | 40,418 | ||||||
Loans: | ||||||||
Commercial and other | 1,277,147 | 1,252,419 | ||||||
Residential real estate | 724,361 | 717,681 | ||||||
Consumer | 323,537 | 323,903 | ||||||
Total loans | 2,325,045 | 2,294,003 | ||||||
Less allowance for loan losses | 31,139 | 30,873 | ||||||
Net loans | 2,293,906 | 2,263,130 | ||||||
Premises and equipment, net | 26,812 | 27,232 | ||||||
Investment in bank-owned life insurance | 55,290 | 54,823 | ||||||
Goodwill | 58,114 | 58,114 | ||||||
Identifiable intangible assets, net | 6,000 | 6,173 | ||||||
Other assets | 59,961 | 63,409 | ||||||
Total assets | $3,051,848 | $3,071,884 | ||||||
Liabilities: | ||||||||
Deposits: | ||||||||
Demand deposits | $375,156 | $379,889 | ||||||
NOW accounts | 294,136 | 291,174 | ||||||
Money market accounts | 503,414 | 496,402 | ||||||
Savings accounts | 284,983 | 274,934 | ||||||
Time deposits | 861,952 | 870,232 | ||||||
Total deposits | 2,319,641 | 2,312,631 | ||||||
Federal Home Loan Bank advances | 341,218 | 361,172 | ||||||
Junior subordinated debentures | 32,991 | 32,991 | ||||||
Other borrowings | 209 | 1,212 | ||||||
Other liabilities | 56,498 | 68,226 | ||||||
Total liabilities | 2,750,557 | 2,776,232 | ||||||
Shareholders’ Equity: | ||||||||
Common stock of $.0625 par value; authorized 30,000,000 shares; issued and outstanding 16,425,442 shares in 2013 and 16,379,771 shares in 2012 | 1,027 | 1,024 | ||||||
Paid-in capital | 92,662 | 91,453 | ||||||
Retained earnings | 216,920 | 213,674 | ||||||
Accumulated other comprehensive loss | (9,318 | ) | (10,499 | ) | ||||
Total shareholders’ equity | 301,291 | 295,652 | ||||||
Total liabilities and shareholders’ equity | $3,051,848 | $3,071,884 | ||||||
Washington Trust Bancorp, Inc. and Subsidiaries | ||||||||
CONSOLIDATED STATEMENTS OF INCOME (unaudited) | ||||||||
(Dollars and shares in thousands, except per share amounts) | Three Months | |||||||
Periods ended March 31, | 2013 | 2012 | ||||||
Interest income: | ||||||||
Interest and fees on loans | $25,223 | $25,363 | ||||||
Interest on securities: | Taxable | 2,845 | 4,377 | |||||
Nontaxable | 659 | 693 | ||||||
Dividends on corporate stock and Federal Home Loan Bank stock | 38 | 77 | ||||||
Other interest income | 28 | 20 | ||||||
Total interest income | 28,793 | 30,530 | ||||||
Interest expense: | ||||||||
Deposits | 3,194 | 3,434 | ||||||
Federal Home Loan Bank advances | 2,737 | 4,085 | ||||||
Junior subordinated debentures | 390 | 392 | ||||||
Other interest expense | 5 | 234 | ||||||
Total interest expense | 6,326 | 8,145 | ||||||
Net interest income | 22,467 | 22,385 | ||||||
Provision for loan losses | 600 | 900 | ||||||
Net interest income after provision for loan losses | 21,867 | 21,485 | ||||||
Noninterest income: | ||||||||
Wealth management services: | ||||||||
Trust and investment advisory fees | 6,066 | 5,778 | ||||||
Mutual fund fees | 1,022 | 1,025 | ||||||
Financial planning, commissions and other service fees | 386 | 382 | ||||||
Wealth management services | 7,474 | 7,185 | ||||||
Service charges on deposit accounts | 791 | 759 | ||||||
Merchant processing fees | 1,977 | 1,988 | ||||||
Card interchange fees | 599 | 543 | ||||||
Income from bank-owned life insurance | 467 | 486 | ||||||
Net gains on loan sales and commissions on loans originated for others | 4,166 | 3,097 | ||||||
Net gains on interest rate swap contracts | 19 | 28 | ||||||
Equity in earnings (losses) of unconsolidated subsidiaries | 39 | (37 | ) | |||||
Other income | 406 | 392 | ||||||
Noninterest income, excluding other-than-temporary impairment losses | 15,938 | 14,441 | ||||||
Total other-than-temporary impairment losses on securities | (613 | ) | (85 | ) | ||||
Portion of loss recognized in other comprehensive income (before tax) | (2,159 | ) | (124 | ) | ||||
Net impairment losses recognized in earnings | (2,772 | ) | (209 | ) | ||||
Total noninterest income | 13,166 | 14,232 | ||||||
Noninterest expense: | ||||||||
Salaries and employee benefits | 15,442 | 14,460 | ||||||
Net occupancy | 1,514 | 1,526 | ||||||
Equipment | 1,244 | 1,107 | ||||||
Merchant processing costs | 1,673 | 1,663 | ||||||
Outsourced services | 841 | 920 | ||||||
FDIC deposit insurance costs | 431 | 458 | ||||||
Legal, audit and professional fees | 608 | 482 | ||||||
Advertising and promotion | 355 | 372 | ||||||
Amortization of intangibles | 173 | 187 | ||||||
Foreclosed property costs | 47 | 298 | ||||||
Other expenses | 1,856 | 1,926 | ||||||
Total noninterest expense | 24,184 | 23,399 | ||||||
Income before income taxes | 10,849 | 12,318 | ||||||
Income tax expense | 3,428 | 3,880 | ||||||
Net income | $7,421 | $8,438 | ||||||
Weighted average common shares outstanding - basic | 16,401 | 16,330 | ||||||
Weighted average common shares outstanding - diluted | 16,449 | 16,370 | ||||||
Per share information: | Basic earnings per common share | $0.45 | $0.51 | |||||
Diluted earnings per common share | $0.45 | $0.51 | ||||||
Cash dividends declared per share | $0.25 | $0.23 | ||||||
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||
SELECTED FINANCIAL HIGHLIGHTS (unaudited) | |||||||||||||||
At or for the Quarters Ended | |||||||||||||||
(Dollars and shares in thousands, except per share amounts) | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | ||||||||||
Financial Data: | |||||||||||||||
Total assets | $3,051,848 | $3,071,884 | $3,048,868 | $3,041,050 | $3,028,690 | ||||||||||
Total loans | 2,325,045 | 2,294,003 | 2,256,697 | 2,213,842 | 2,155,359 | ||||||||||
Total securities | 387,102 | 415,879 | 483,858 | 516,193 | 558,284 | ||||||||||
Total deposits | 2,319,641 | 2,312,631 | 2,234,659 | 2,130,453 | 2,145,562 | ||||||||||
Total shareholders' equity | 301,291 | 295,652 | 298,394 | 292,734 | 287,935 | ||||||||||
Net interest income | 22,467 | 23,164 | 22,736 | 22,411 | 22,385 | ||||||||||
Provision for loan losses | 600 | 600 | 600 | 600 | 900 | ||||||||||
Noninterest income, excluding OTTI losses | 15,938 | 17,899 | 16,921 | 16,174 | 14,441 | ||||||||||
Net OTTI losses recognized in earnings | (2,772 | ) | (12 | ) | — | — | (209 | ) | |||||||
Noninterest expenses | 24,184 | 27,421 | 26,290 | 25,228 | 23,399 | ||||||||||
Income tax expense | 3,428 | 4,007 | 3,867 | 4,044 | 3,880 | ||||||||||
Net income | 7,421 | 9,023 | 8,900 | 8,713 | 8,438 | ||||||||||
Share Data: | |||||||||||||||
Basic earnings per common share | $0.45 | $0.55 | $0.54 | $0.53 | $0.51 | ||||||||||
Diluted earnings per common share | $0.45 | $0.55 | $0.54 | $0.53 | $0.51 | ||||||||||
Dividends declared per share | $0.25 | $0.24 | $0.24 | $0.23 | $0.23 | ||||||||||
Book value per share | $18.34 | $18.05 | $18.23 | $17.89 | $17.61 | ||||||||||
Tangible book value per share - Non-GAAP (1) | $14.44 | $14.13 | $14.29 | $13.94 | $13.64 | ||||||||||
Market value per share | $27.38 | $26.31 | $26.27 | $24.38 | $24.14 | ||||||||||
Shares outstanding at end of period | 16,425 | 16,380 | 16,371 | 16,359 | 16,354 | ||||||||||
Weighted average common shares outstanding - basic | 16,401 | 16,376 | 16,366 | 16,358 | 16,330 | ||||||||||
Weighted average common shares outstanding - diluted | 16,449 | 16,425 | 16,414 | 16,392 | 16,370 | ||||||||||
Key Ratios: | |||||||||||||||
Return on average assets | 0.98 | % | 1.19 | % | 1.17 | % | 1.16 | % | 1.11 | % | |||||
Return on average tangible assets - Non-GAAP (1) | 1.01 | % | 1.21 | % | 1.19 | % | 1.18 | % | 1.14 | % | |||||
Return on average equity | 9.91 | % | 12.01 | % | 12.02 | % | 11.98 | % | 11.85 | % | |||||
Return on average tangible equity - Non-GAAP (1) | 12.62 | % | 15.29 | % | 15.37 | % | 15.41 | % | 15.35 | % | |||||
Capital Ratios: | |||||||||||||||
Tier 1 risk-based capital | 12.25% (i) | 12.01 | % | 11.93 | % | 11.90 | % | 11.96 | % | ||||||
Total risk-based capital | 13.50% (i) | 13.26 | % | 13.18 | % | 13.15 | % | 13.22 | % | ||||||
Tier 1 leverage ratio | 9.53% (i) | 9.30 | % | 9.11 | % | 9.00 | % | 8.75 | % | ||||||
Equity to assets | 9.87 | % | 9.62 | % | 9.79 | % | 9.63 | % | 9.51 | % | |||||
Tangible equity to tangible assets - Non-GAAP (1) | 7.94 | % | 7.69 | % | 7.84 | % | 7.66 | % | 7.53 | % | |||||
(i) - estimated | |||||||||||||||
Wealth Management Assets under Administration: | |||||||||||||||
Balance at beginning of period | $4,199,640 | $4,242,520 | $4,079,913 | $4,196,447 | $3,900,061 | ||||||||||
Net investment (depreciation) appreciation & income | 213,979 | (5,887 | ) | 155,427 | (131,896 | ) | 298,155 | ||||||||
Net client cash flows | 6,457 | (36,993 | ) | 7,180 | 15,362 | (1,769 | ) | ||||||||
Balance at end of period | $4,420,076 | $4,199,640 | $4,242,520 | $4,079,913 | $4,196,447 | ||||||||||
(1) | See the section labeled “Supplemental Information - Non-GAAP Financial Measures” at the end of this document. |
Washington Trust Bancorp, Inc. and Subsidiaries | ||||||||||||||
SELECTED FINANCIAL HIGHLIGHTS (unaudited) | ||||||||||||||
For the Quarters Ended | ||||||||||||||
Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | ||||||||||
Average Yield / Rate (taxable equivalent basis): | ||||||||||||||
Assets: | ||||||||||||||
Commercial mortgages and other commercial loans | 4.70 | % | 4.90 | % | 4.94 | % | 5.03 | % | 5.13 | % | ||||
Residential real estate loans, including mortgage loans held for sale | 4.26 | % | 4.23 | % | 4.32 | % | 4.40 | % | 4.51 | % | ||||
Consumer loans | 3.84 | % | 3.86 | % | 3.89 | % | 3.85 | % | 3.89 | % | ||||
Total loans | 4.44 | % | 4.53 | % | 4.59 | % | 4.65 | % | 4.74 | % | ||||
Cash, federal funds sold and other short-term investments | 0.21 | % | 0.26 | % | 0.26 | % | 0.23 | % | 0.15 | % | ||||
FHLBB stock | 0.39 | % | 0.48 | % | 0.51 | % | 0.54 | % | 0.50 | % | ||||
Taxable debt securities | 3.56 | % | 3.49 | % | 3.50 | % | 3.63 | % | 3.62 | % | ||||
Nontaxable debt securities | 5.98 | % | 5.89 | % | 5.83 | % | 5.93 | % | 5.92 | % | ||||
Corporate stocks | — | % | — | % | — | % | 7.58 | % | 7.16 | % | ||||
Total securities | 3.98 | % | 3.86 | % | 3.83 | % | 3.95 | % | 3.93 | % | ||||
Total interest-earning assets | 4.24 | % | 4.31 | % | 4.34 | % | 4.41 | % | 4.43 | % | ||||
Liabilities: | ||||||||||||||
NOW accounts | 0.06 | % | 0.07 | % | 0.06 | % | 0.06 | % | 0.08 | % | ||||
Money market accounts | 0.29 | % | 0.28 | % | 0.26 | % | 0.23 | % | 0.22 | % | ||||
Savings accounts | 0.07 | % | 0.09 | % | 0.11 | % | 0.11 | % | 0.11 | % | ||||
Time deposits | 1.28 | % | 1.32 | % | 1.33 | % | 1.35 | % | 1.41 | % | ||||
FHLBB advances | 3.21 | % | 3.27 | % | 3.18 | % | 3.25 | % | 3.14 | % | ||||
Junior subordinated debentures | 4.79 | % | 4.75 | % | 4.74 | % | 4.77 | % | 4.78 | % | ||||
Other | 1.77 | % | 5.51 | % | 6.33 | % | 2.07 | % | 4.98 | % | ||||
Total interest-bearing liabilities | 1.11 | % | 1.19 | % | 1.27 | % | 1.33 | % | 1.38 | % | ||||
Interest rate spread (taxable equivalent basis) | 3.13 | % | 3.12 | % | 3.07 | % | 3.08 | % | 3.05 | % | ||||
Net interest margin (taxable equivalent basis) | 3.32 | % | 3.33 | % | 3.28 | % | 3.30 | % | 3.27 | % | ||||
At March 31, 2013 | ||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||
(Dollars in thousands) | Cost (1) | Gains | Losses | Value | ||||||||||||
Securities Available for Sale: | ||||||||||||||||
Obligations of U.S. government-sponsored enterprises | $29,465 | $1,855 | $— | $31,320 | ||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | 193,921 | 12,873 | — | 206,794 | ||||||||||||
States and political subdivisions | 67,502 | 4,081 | — | 71,583 | ||||||||||||
Trust preferred securities: | ||||||||||||||||
Individual name issuers | 30,686 | — | (5,112 | ) | 25,574 | |||||||||||
Collateralized debt obligations | 1,264 | — | (860 | ) | 404 | |||||||||||
Corporate bonds | 14,116 | 414 | — | 14,530 | ||||||||||||
Total securities available for sale | 336,954 | 19,223 | (5,972 | ) | 350,205 | |||||||||||
Held to Maturity: | ||||||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | 36,897 | 907 | — | 37,804 | ||||||||||||
Total securities held to maturity | 36,897 | 907 | — | 37,804 | ||||||||||||
Total securities | $373,851 | $20,130 | ($5,972 | ) | $388,009 | |||||||||||
(1) | Net of other-than-temporary impairment losses recognized in earnings. |
Washington Trust Bancorp, Inc. and Subsidiaries | ||||||||||||||||
SELECTED FINANCIAL HIGHLIGHTS (unaudited) | ||||||||||||||||
Period End Balances At | ||||||||||||||||
(Dollars in thousands) | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | |||||||||||
Loans: | ||||||||||||||||
Commercial: | Mortgages | $729,968 | $710,813 | $693,221 | $664,410 | $642,012 | ||||||||||
Construction & development | 34,179 | 27,842 | 25,132 | 17,365 | 11,130 | |||||||||||
Other | 513,000 | 513,764 | 500,974 | 510,220 | 486,258 | |||||||||||
Total commercial | 1,277,147 | 1,252,419 | 1,219,327 | 1,191,995 | 1,139,400 | |||||||||||
Residential real estate: | Mortgages | 702,418 | 692,798 | 692,659 | 680,772 | 675,249 | ||||||||||
Homeowner construction | 21,943 | 24,883 | 22,753 | 21,247 | 21,708 | |||||||||||
Total residential real estate | 724,361 | 717,681 | 715,412 | 702,019 | 696,957 | |||||||||||
Consumer: | Home equity lines | 226,640 | 226,861 | 227,549 | 224,550 | 223,311 | ||||||||||
Home equity loans | 40,134 | 39,329 | 39,452 | 40,690 | 40,793 | |||||||||||
Other | 56,763 | 57,713 | 54,957 | 54,588 | 54,898 | |||||||||||
Total consumer | 323,537 | 323,903 | 321,958 | 319,828 | 319,002 | |||||||||||
Total loans | $2,325,045 | $2,294,003 | $2,256,697 | $2,213,842 | $2,155,359 | |||||||||||
At March 31, 2013 | |||||
(Dollars in thousands) | Balance | % of Total | |||
Commercial Real Estate Loans by Property Location: | |||||
Rhode Island, Connecticut, Massachusetts | $728,613 | 95.4 | % | ||
New York | 26,295 | 3.4 | % | ||
New Hampshire | 9,239 | 1.2 | % | ||
Total commercial real estate loans (1) | $764,147 | 100.0 | % | ||
(1) | Commercial real estate loans consist of commercial mortgages and construction and development loans. Commercial mortgages are loans secured by income producing property. |
At March 31, 2013 | |||||
(Dollars in thousands) | Balance | % of Total | |||
Residential Mortgages by Property Location: | |||||
Rhode Island, Connecticut, Massachusetts | $704,162 | 97.1 | % | ||
New York, Virginia, New Jersey, Maryland, Pennsylvania, District of Columbia | 9,519 | 1.3 | % | ||
New Hampshire | 4,429 | 0.6 | % | ||
Ohio | 2,845 | 0.4 | % | ||
Washington, Oregon | 1,373 | 0.2 | % | ||
Georgia | 1,097 | 0.2 | % | ||
New Mexico | 474 | 0.1 | % | ||
Other | 462 | 0.1 | % | ||
Total residential mortgages | $724,361 | 100.0 | % | ||
Period End Balances At | ||||||||||||||||
(Dollars in thousands) | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | |||||||||||
Deposits: | ||||||||||||||||
Demand deposits | $375,156 | $379,889 | $352,330 | $321,488 | $333,833 | |||||||||||
NOW accounts | 294,136 | 291,174 | 267,495 | 263,124 | 258,986 | |||||||||||
Money market accounts | 503,414 | 496,402 | 459,671 | 388,686 | 400,396 | |||||||||||
Savings accounts | 284,983 | 274,934 | 268,191 | 264,772 | 257,495 | |||||||||||
Time deposits | 861,952 | 870,232 | 886,972 | 892,383 | 894,852 | |||||||||||
Total deposits | $2,319,641 | $2,312,631 | $2,234,659 | $2,130,453 | $2,145,562 | |||||||||||
Out-of-market brokered certificates of deposits included in time deposits | $103,045 | $102,636 | $98,603 | $102,661 | $95,989 | |||||||||||
In-market deposits, excluding out-of-market brokered certificates of deposit | $2,216,596 | $2,209,995 | $2,136,056 | $2,027,792 | $2,049,573 | |||||||||||
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||||
SELECTED FINANCIAL HIGHLIGHTS (unaudited) | |||||||||||||||||||
Period End Balances At | |||||||||||||||||||
(Dollars in thousands) | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | ||||||||||||||
Asset Quality Data: | |||||||||||||||||||
Nonperforming Assets: | |||||||||||||||||||
Commercial mortgages | $14,953 | $10,681 | $5,956 | $2,597 | $5,099 | ||||||||||||||
Commercial construction and development | — | — | — | — | — | ||||||||||||||
Other commercial | 3,122 | 4,412 | 3,201 | 3,405 | 4,200 | ||||||||||||||
Residential real estate mortgages | 6,699 | 6,158 | 7,127 | 8,659 | 9,031 | ||||||||||||||
Consumer | 901 | 1,292 | 1,463 | 1,081 | 1,069 | ||||||||||||||
Total nonaccrual loans | $25,675 | $22,543 | $17,747 | $15,742 | $19,399 | ||||||||||||||
Nonaccrual investment securities | 404 | 843 | 929 | 767 | 750 | ||||||||||||||
Property acquired through foreclosure or repossession | 2,625 | 2,047 | 2,447 | 2,332 | 3,478 | ||||||||||||||
Total nonperforming assets | $28,704 | $25,433 | $21,123 | $18,841 | $23,627 | ||||||||||||||
Total past due loans to total loans | 1.13 | % | 1.22 | % | 1.05 | % | 0.92 | % | 0.98 | % | |||||||||
Nonperforming assets to total assets | 0.94 | % | 0.83 | % | 0.69 | % | 0.62 | % | 0.78 | % | |||||||||
Nonaccrual loans to total loans | 1.10 | % | 0.98 | % | 0.79 | % | 0.71 | % | 0.90 | % | |||||||||
Allowance for loan losses to nonaccrual loans | 121.28 | % | 136.95 | % | 173.28 | % | 193.42 | % | 154.88 | % | |||||||||
Allowance for loan losses to total loans | 1.34 | % | 1.35 | % | 1.36 | % | 1.38 | % | 1.39 | % | |||||||||
Troubled Debt Restructured Loans: | |||||||||||||||||||
Accruing troubled debt restructured loans: | |||||||||||||||||||
Commercial mortgages | $9,600 | $9,569 | $9,131 | $1,251 | $1,059 | ||||||||||||||
Other commercial | 6,554 | 6,577 | 6,880 | 6,916 | 7,329 | ||||||||||||||
Residential real estate mortgages | 1,599 | 1,123 | 386 | 570 | 935 | ||||||||||||||
Consumer | 244 | 154 | 158 | 159 | 174 | ||||||||||||||
Accruing troubled debt restructured loans | 17,997 | 17,423 | 16,555 | 8,896 | 9,497 | ||||||||||||||
Nonaccrual troubled debt restructured loans: | |||||||||||||||||||
Commercial mortgages | — | — | — | — | 348 | ||||||||||||||
Other commercial | 721 | 2,063 | 2,306 | 2,317 | 2,361 | ||||||||||||||
Residential real estate mortgages | 155 | 688 | 1,697 | 2,028 | 1,904 | ||||||||||||||
Consumer | 42 | 44 | 46 | 47 | 35 | ||||||||||||||
Nonaccrual troubled debt restructured loans | 918 | 2,795 | 4,049 | 4,392 | 4,648 | ||||||||||||||
Total troubled debt restructured loans | $18,915 | $20,218 | $20,604 | $13,288 | $14,145 | ||||||||||||||
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||||
SELECTED FINANCIAL HIGHLIGHTS (unaudited) | |||||||||||||||||||
Period End Balances At | |||||||||||||||||||
(Dollars in thousands) | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | ||||||||||||||
Past Due Loans: | |||||||||||||||||||
Loans 30-59 Days Past Due: | |||||||||||||||||||
Commercial mortgages | $— | $373 | $3,978 | $411 | $104 | ||||||||||||||
Other commercial loans | 689 | 260 | 2,719 | 849 | 1,031 | ||||||||||||||
Residential real estate mortgages | 3,891 | 4,840 | 2,368 | 4,969 | 4,468 | ||||||||||||||
Consumer loans | 1,534 | 1,134 | 1,876 | 2,660 | 2,404 | ||||||||||||||
Loans 30-59 days past due | $6,114 | $6,607 | $10,941 | $8,889 | $8,007 | ||||||||||||||
Loans 60-89 Days Past Due: | |||||||||||||||||||
Commercial mortgages | $193 | $408 | $874 | $233 | $— | ||||||||||||||
Other commercial loans | 341 | 296 | 1,169 | 434 | 33 | ||||||||||||||
Residential real estate mortgages | 1,451 | 1,951 | 821 | 1,600 | 488 | ||||||||||||||
Consumer loans | 461 | 385 | 1,213 | 677 | 219 | ||||||||||||||
Loans 60-89 days past due | $2,446 | $3,040 | $4,077 | $2,944 | $740 | ||||||||||||||
Loans 90 Days or more Past Due: | |||||||||||||||||||
Commercial mortgages | $9,852 | $10,300 | $2,495 | $2,339 | $4,676 | ||||||||||||||
Other commercial loans | 2,961 | 3,647 | 1,366 | 1,714 | 2,521 | ||||||||||||||
Residential real estate mortgages | 4,327 | 3,658 | 3,924 | 4,039 | 4,843 | ||||||||||||||
Consumer loans | 484 | 844 | 811 | 362 | 326 | ||||||||||||||
Loans 90 days or more past due | $17,624 | $18,449 | $8,596 | $8,454 | $12,366 | ||||||||||||||
Total Past Due Loans: | |||||||||||||||||||
Commercial mortgages | $10,045 | $11,081 | $7,347 | $2,983 | $4,780 | ||||||||||||||
Other commercial loans | 3,991 | 4,203 | 5,254 | 2,997 | 3,585 | ||||||||||||||
Residential real estate mortgages | 9,669 | 10,449 | 7,113 | 10,608 | 9,799 | ||||||||||||||
Consumer loans | 2,479 | 2,363 | 3,900 | 3,699 | 2,949 | ||||||||||||||
Total past due loans | $26,184 | $28,096 | $23,614 | $20,287 | $21,113 | ||||||||||||||
Nonaccrual loans included in past due loans | $19,000 | $20,979 | $14,471 | $12,719 | $14,747 | ||||||||||||||
For the Quarters Ended | |||||||||||||||||||
(Dollars in thousands) | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | ||||||||||||||
Allowance for Loan Losses: | |||||||||||||||||||
Balance at beginning of period | $30,873 | $30,752 | $30,448 | $30,045 | $29,802 | ||||||||||||||
Provision charged to earnings | 600 | 600 | 600 | 600 | 900 | ||||||||||||||
Charge-offs | (374 | ) | (534 | ) | (424 | ) | (696 | ) | (681 | ) | |||||||||
Recoveries | 40 | 55 | 128 | 499 | 24 | ||||||||||||||
Balance at end of period | $31,139 | $30,873 | $30,752 | $30,448 | $30,045 | ||||||||||||||
Net Loan Charge-Offs (Recoveries): | |||||||||||||||||||
Commercial mortgages | $108 | $212 | $212 | ($388 | ) | $7 | |||||||||||||
Other commercial | 71 | 225 | (22 | ) | 549 | 324 | |||||||||||||
Residential real estate mortgages | 9 | 39 | 41 | (47 | ) | 224 | |||||||||||||
Consumer | 146 | 3 | 65 | 83 | 102 | ||||||||||||||
Total | $334 | $479 | $296 | $197 | $657 | ||||||||||||||
The following tables present average balance and interest rate information. Tax-exempt income is converted to a fully taxable equivalent basis using the statutory federal income tax rate adjusted for applicable state income taxes, net of the related federal tax benefit. For dividends on corporate stocks, the 70% federal dividends received deduction is also used in the calculation of tax equivalency. Unrealized gains (losses) on available for sale securities are excluded from the average balance and yield calculations. Nonaccrual and renegotiated loans, as well as interest earned on these loans (to the extent recognized in the Consolidated Statements of Income) are included in amounts presented for loans.
Washington Trust Bancorp, Inc. and Subsidiaries | ||||||||||||||||||
CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited) | ||||||||||||||||||
Three Months Ended | 2013 | 2012 | ||||||||||||||||
Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | |||||||||||||
(Dollars in thousands) | ||||||||||||||||||
Assets: | ||||||||||||||||||
Commercial mortgages and other commercial loans | $1,243,716 | $14,421 | 4.70 | % | $1,121,684 | $14,298 | 5.13 | % | ||||||||||
Residential real estate loans, including mortgage loans held for sale | 755,528 | 7,937 | 4.26 | % | 720,706 | 8,075 | 4.51 | % | ||||||||||
Consumer loans | 322,668 | 3,053 | 3.84 | % | 319,948 | 3,097 | 3.89 | % | ||||||||||
Total loans | 2,321,912 | 25,411 | 4.44 | % | 2,162,338 | 25,470 | 4.74 | % | ||||||||||
Cash, federal funds sold and short-term investments | 53,734 | 28 | 0.21 | % | 52,313 | 20 | 0.15 | % | ||||||||||
FHLBB stock | 39,790 | 38 | 0.39 | % | 41,606 | 52 | 0.50 | % | ||||||||||
Taxable debt securities | 323,730 | 2,845 | 3.56 | % | 486,448 | 4,377 | 3.62 | % | ||||||||||
Nontaxable debt securities | 68,064 | 1,004 | 5.98 | % | 71,908 | 1,059 | 5.92 | % | ||||||||||
Corporate stocks | — | — | — | % | 1,854 | 33 | 7.16 | % | ||||||||||
Total securities | 391,794 | 3,849 | 3.98 | % | 560,210 | 5,469 | 3.93 | % | ||||||||||
Total interest-earning assets | 2,807,230 | 29,326 | 4.24 | % | 2,816,467 | 31,011 | 4.43 | % | ||||||||||
Noninterest-earning assets | 210,338 | 220,803 | ||||||||||||||||
Total assets | $3,017,568 | $3,037,270 | ||||||||||||||||
Liabilities and Shareholders' Equity: | ||||||||||||||||||
NOW accounts | $283,004 | $45 | 0.06 | % | $246,251 | $46 | 0.08 | % | ||||||||||
Money market accounts | 495,453 | 351 | 0.29 | % | 412,053 | 225 | 0.22 | % | ||||||||||
Savings accounts | 279,536 | 46 | 0.07 | % | 248,853 | 70 | 0.11 | % | ||||||||||
Time deposits | 869,576 | 2,752 | 1.28 | % | 885,344 | 3,093 | 1.41 | % | ||||||||||
FHLBB advances | 345,270 | 2,737 | 3.21 | % | 523,766 | 4,085 | 3.14 | % | ||||||||||
Junior subordinated debentures | 32,991 | 390 | 4.79 | % | 32,991 | 392 | 4.78 | % | ||||||||||
Other | 1,146 | 5 | 1.77 | % | 18,903 | 234 | 4.98 | % | ||||||||||
Total interest-bearing liabilities | 2,306,976 | 6,326 | 1.11 | % | 2,368,161 | 8,145 | 1.38 | % | ||||||||||
Demand deposits | 360,851 | 331,224 | ||||||||||||||||
Other liabilities | 50,305 | 53,084 | ||||||||||||||||
Shareholders' equity | 299,436 | 284,801 | ||||||||||||||||
Total liabilities and shareholders' equity | $3,017,568 | $3,037,270 | ||||||||||||||||
Net interest income (FTE) | $23,000 | $22,866 | ||||||||||||||||
Interest rate spread | 3.13 | % | 3.05 | % | ||||||||||||||
Net interest margin | 3.32 | % | 3.27 | % | ||||||||||||||
Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:
(Dollars in thousands) | |||||||
Three Months Ended | 2013 | 2012 | |||||
Commercial loans | $188 | $107 | |||||
Nontaxable debt securities | 345 | 366 | |||||
Corporate stocks | — | 8 | |||||
Total | $533 | $481 | |||||
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||
SUPPLEMENTAL INFORMATION - Non-GAAP Financial Measures (unaudited) | |||||||||||||||
At or for the Quarters Ended | |||||||||||||||
(Dollars in thousands, except per share amounts) | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | ||||||||||
Calculation of Tangible Book Value per Share: | |||||||||||||||
Total shareholders' equity at end of period | $301,291 | $295,652 | $298,394 | $292,734 | $287,935 | ||||||||||
Less: | |||||||||||||||
Goodwill | 58,114 | 58,114 | 58,114 | 58,114 | 58,114 | ||||||||||
Identifiable intangible assets, net | 6,000 | 6,173 | 6,346 | 6,528 | 6,714 | ||||||||||
Total tangible shareholders' equity at end of period | $237,177 | $231,365 | $233,934 | $228,092 | $223,107 | ||||||||||
Shares outstanding at end of period | 16,425 | 16,380 | 16,371 | 16,359 | 16,354 | ||||||||||
Book value per share - GAAP | $18.34 | $18.05 | $18.23 | $17.89 | $17.61 | ||||||||||
Tangible book value per share - Non-GAAP | $14.44 | $14.13 | $14.29 | $13.94 | $13.64 | ||||||||||
Calculation of Tangible Equity to Tangible Assets: | |||||||||||||||
Total tangible shareholders' equity at end of period | $237,177 | $231,365 | $233,934 | $228,092 | $223,107 | ||||||||||
Total assets at end of period | $3,051,848 | $3,071,884 | $3,048,868 | $3,041,050 | $3,028,690 | ||||||||||
Less: | |||||||||||||||
Goodwill | 58,114 | 58,114 | 58,114 | 58,114 | 58,114 | ||||||||||
Identifiable intangible assets, net | 6,000 | 6,173 | 6,346 | 6,528 | 6,714 | ||||||||||
Total tangible assets at end of period | $2,987,734 | $3,007,597 | $2,984,408 | $2,976,408 | $2,963,862 | ||||||||||
Equity to assets - GAAP | 9.87 | % | 9.62 | % | 9.79 | % | 9.63 | % | 9.51 | % | |||||
Tangible equity to tangible assets - Non-GAAP | 7.94 | % | 7.69 | % | 7.84 | % | 7.66 | % | 7.53 | % | |||||
Calculation of Return on Average Tangible Assets: | |||||||||||||||
Net income | $7,421 | $9,023 | $8,900 | $8,713 | $8,438 | ||||||||||
Total average assets | $3,017,568 | $3,044,764 | $3,045,203 | $3,017,167 | $3,037,270 | ||||||||||
Less: | |||||||||||||||
Average goodwill | 58,114 | 58,114 | 58,114 | 58,114 | 58,114 | ||||||||||
Average identifiable intangible assets, net | 6,085 | 6,257 | 6,434 | 6,619 | 6,805 | ||||||||||
Total average tangible assets | $2,953,369 | $2,980,393 | $2,980,655 | $2,952,434 | $2,972,351 | ||||||||||
Return on average assets - GAAP | 0.98 | % | 1.19 | % | 1.17 | % | 1.16 | % | 1.11 | % | |||||
Return on average tangible assets - Non-GAAP | 1.01 | % | 1.21 | % | 1.19 | % | 1.18 | % | 1.14 | % | |||||
Calculation of Return on Average Tangible Equity: | |||||||||||||||
Net income | $7,421 | $9,023 | $8,900 | $8,713 | $8,438 | ||||||||||
Total average shareholders' equity | $299,436 | $300,430 | $296,150 | $290,854 | $284,801 | ||||||||||
Less: | |||||||||||||||
Average goodwill | 58,114 | 58,114 | 58,114 | 58,114 | 58,114 | ||||||||||
Average identifiable intangible assets, net | 6,085 | 6,257 | 6,434 | 6,619 | 6,805 | ||||||||||
Total average tangible shareholders' equity | $235,237 | $236,059 | $231,602 | $226,121 | $219,882 | ||||||||||
Return on average shareholders' equity - GAAP | 9.91 | % | 12.01 | % | 12.02 | % | 11.98 | % | 11.85 | % | |||||
Return on average tangible shareholders' equity - Non-GAAP | 12.62 | % | 15.29 | % | 15.37 | % | 15.41 | % | 15.35 | % | |||||