Rhode Island | 001-32991 | 05-0404671 | ||
-------------------- | -------------------- | --------------------- | ||
(State or Other Jurisdiction | (Commission | (IRS Employer | ||
of Incorporation) | File Number) | Identification No.) |
£ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
£ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
£ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
£ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
(d) | Exhibits. | |||
Exhibit No. | Exhibit | |||
99.1 | Press release dated October 21, 2013* | |||
*Filed herewith |
WASHINGTON TRUST BANCORP, INC. | ||||
Date: | October 21, 2013 | By: | /s/ David V. Devault | |
David V. Devault | ||||
Vice Chairman, Secretary and Chief Financial Officer |
• | Third quarter net income and earnings per share results were record quarterly highs for Washington Trust. |
• | The returns on average equity and average assets for the third quarter of 2013 were 12.82% and 1.29%, respectively. Comparable amounts for the second quarter of 2013 were 11.84% and 1.18%, respectively. |
• | Deposits totaled $2.45 billion at September 30, 2013, up by $150.2 million from June 30, 2013, with continued growth in money market and demand accounts. Total deposits were up by $220.2 million, or 9.9%, in the last twelve months. |
• | Residential mortgage portfolio loans totaling $48.7 million were sold at a gain of $977 thousand, including $456 thousand attributable to mortgage servicing rights retained. This gain was included in net gains on loan sales and commission on loans originated for others. |
• | $24.5 million of Federal Home Loan Bank of Boston ("FHLBB") advances were prepaid, resulting in debt prepayment penalty expense of $1.1 million. |
• | A relatively large level of commercial loan prepayment penalty fee income of $457 thousand received in the third quarter of 2013, which had a 6 basis point impact on the net interest margin and a 7 basis point impact on the yield on interest-earning assets. |
• | As a result of the second quarter 2013 redemption of certain junior subordinated debentures, unamortized debt issuance costs of $244 thousand were expensed and classified as interest expense in that quarter. This had a 4 basis point impact on both the net interest margin and the cost of funds for the second quarter. |
• | Average interest-earning assets for the third quarter of 2013 increased by $67.0 million, reflecting an increase of $42.4 million in average interest-bearing cash and short-term investments largely resulting from seasonal deposit inflows and growth of $22.3 million in average loan balances, primarily concentrated in the residential loan portfolio. |
• | Average interest-bearing liabilities for the third quarter of 2013 increased by $46.8 million, excluding the impact of the second quarter redemption of junior subordinated debentures, reflecting a $44.7 million increase in average interest-bearing deposits. Average demand balances for the third quarter of 2013 rose by $18.9 million. |
• | The yield on interest-earning assets declined by 12 basis points from the previous quarter, while the cost of funds improved by 6 basis points. |
• | Wealth management revenues were down by $283 thousand, or 4%, due to a decline of $290 thousand in tax preparation fees, which are typically concentrated in the second quarter. |
• | Net gains on loan sales and commission on loans originated for others, excluding the portfolio loan sale gain described above, decreased by $579 thousand, or 17%, on a linked quarter basis, reflecting a lower level of mortgage loan refinancing activity due to rising market interest rates. Residential mortgage loans sold to the secondary market, excluding the $48.7 million sold from portfolio, amounted to $114 million, compared to $132 million in the previous quarter. |
• | Merchant processing fee revenue rose by $746 thousand, or 29%, on a linked quarter basis, reflecting an increase in the volume of transactions processed for customers. See discussion regarding a corresponding increase in merchant processing costs described below. |
• | Debt prepayment penalties of $1.1 million recognized in the third quarter of 2013. There were no debt prepayment penalties in the previous quarter. |
• | A pension plan expense decrease of $124 thousand in the third quarter of 2013 due to the pension plan amendment and remeasurement described under the caption "Other Liabilities." |
• | Salaries and employee benefits expense, excluding the impact of the pension plan amendment and remeasurement, decreased by $778 thousand on a linked quarter basis largely due to decreases in business development-based compensation in the mortgage banking area. |
• | Merchant processing expenses rose by $651 thousand, or 29%, on a linked quarter basis. See the discussion above regarding the corresponding increase in merchant processing fee income. |
• | Pension plan liabilities were reduced by $17.5 million and the accumulated other comprehensive income component of shareholders' equity was increased by $11.2 million, after tax. The remeasurement impact also reflected an increase in the discount rates used to measure the present value of pension plan liabilities as a result of an increase in market rates of interest. |
• | Pension plan expense in the third quarter was reduced by $124 thousand. |
• | Fourth quarter 2013 pension plan expense is expected to be approximately $500 thousand lower than pre-amendment quarterly expense levels. |
Washington Trust Bancorp, Inc. and Subsidiaries | ||||||||
CONSOLIDATED BALANCE SHEETS (unaudited) | ||||||||
(Dollars in thousands, except par value) | Sep 30, 2013 | Dec 31, 2012 | ||||||
Assets: | ||||||||
Cash and due from banks | $136,724 | $73,474 | ||||||
Short-term investments | 3,204 | 19,176 | ||||||
Mortgage loans held for sale, at fair value; amortized cost $12,772 in 2013 and $48,370 in 2012 | 13,105 | 50,056 | ||||||
Securities: | ||||||||
Available for sale, at fair value; amortized cost $380,994 in 2013 and $363,408 in 2012 | 388,085 | 375,498 | ||||||
Held to maturity, at cost; fair value $31,962 in 2013 and $41,420 in 2012 | 31,264 | 40,381 | ||||||
Total securities | 419,349 | 415,879 | ||||||
Federal Home Loan Bank stock, at cost | 37,730 | 40,418 | ||||||
Loans: | ||||||||
Commercial | 1,297,892 | 1,252,419 | ||||||
Residential real estate | 731,692 | 717,681 | ||||||
Consumer | 324,182 | 323,903 | ||||||
Total loans | 2,353,766 | 2,294,003 | ||||||
Less allowance for loan losses | 28,008 | 30,873 | ||||||
Net loans | 2,325,758 | 2,263,130 | ||||||
Premises and equipment, net | 25,921 | 27,232 | ||||||
Investment in bank-owned life insurance | 56,214 | 54,823 | ||||||
Goodwill | 58,114 | 58,114 | ||||||
Identifiable intangible assets, net | 5,657 | 6,173 | ||||||
Other assets | 50,182 | 63,409 | ||||||
Total assets | $3,131,958 | $3,071,884 | ||||||
Liabilities: | ||||||||
Deposits: | ||||||||
Demand deposits | $420,075 | $379,889 | ||||||
NOW accounts | 301,250 | 291,174 | ||||||
Money market accounts | 623,631 | 496,402 | ||||||
Savings accounts | 292,765 | 274,934 | ||||||
Time deposits | 817,110 | 870,232 | ||||||
Total deposits | 2,454,831 | 2,312,631 | ||||||
Federal Home Loan Bank advances | 288,485 | 361,172 | ||||||
Junior subordinated debentures | 22,681 | 32,991 | ||||||
Other borrowings | 797 | 1,212 | ||||||
Other liabilities | 41,579 | 68,226 | ||||||
Total liabilities | 2,808,373 | 2,776,232 | ||||||
Shareholders’ Equity: | ||||||||
Common stock of $.0625 par value; authorized 30,000,000 shares; issued and outstanding 16,589,472 shares in 2013 and 16,379,771 shares in 2012 | 1,037 | 1,024 | ||||||
Paid-in capital | 96,536 | 91,453 | ||||||
Retained earnings | 227,352 | 213,674 | ||||||
Accumulated other comprehensive loss | (1,340 | ) | (10,499 | ) | ||||
Total shareholders’ equity | 323,585 | 295,652 | ||||||
Total liabilities and shareholders’ equity | $3,131,958 | $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 | Nine Months | ||||||||||||||
Periods Ended September 30, | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Interest income: | ||||||||||||||||
Interest and fees on loans | $26,096 | $25,840 | $76,832 | $76,547 | ||||||||||||
Interest on securities: | Taxable | 2,582 | 3,672 | 8,003 | 12,118 | |||||||||||
Nontaxable | 629 | 660 | 1,935 | 2,035 | ||||||||||||
Dividends on corporate stock and Federal Home Loan Bank stock | 36 | 52 | 113 | 207 | ||||||||||||
Other interest income | 47 | 27 | 99 | 64 | ||||||||||||
Total interest income | 29,390 | 30,251 | 86,982 | 90,971 | ||||||||||||
Interest expense: | ||||||||||||||||
Deposits | 3,064 | 3,391 | 9,354 | 10,210 | ||||||||||||
Federal Home Loan Bank advances | 2,693 | 3,726 | 8,109 | 11,809 | ||||||||||||
Junior subordinated debentures | 241 | 393 | 1,243 | 1,176 | ||||||||||||
Other interest expense | 4 | 5 | 12 | 244 | ||||||||||||
Total interest expense | 6,002 | 7,515 | 18,718 | 23,439 | ||||||||||||
Net interest income | 23,388 | 22,736 | 68,264 | 67,532 | ||||||||||||
Provision for loan losses | 700 | 600 | 2,000 | 2,100 | ||||||||||||
Net interest income after provision for loan losses | 22,688 | 22,136 | 66,264 | 65,432 | ||||||||||||
Noninterest income: | ||||||||||||||||
Wealth management services: | ||||||||||||||||
Trust and investment advisory fees | 6,291 | 5,877 | 18,587 | 17,474 | ||||||||||||
Mutual fund fees | 1,075 | 1,024 | 3,174 | 3,051 | ||||||||||||
Financial planning, commissions and other service fees | 263 | 292 | 1,254 | 1,326 | ||||||||||||
Wealth management services | 7,629 | 7,193 | 23,015 | 21,851 | ||||||||||||
Service charges on deposit accounts | 855 | 833 | 2,436 | 2,356 | ||||||||||||
Merchant processing fees | 3,359 | 3,207 | 7,949 | 7,927 | ||||||||||||
Card interchange fees | 731 | 675 | 2,013 | 1,844 | ||||||||||||
Income from bank-owned life insurance | 464 | 1,006 | 1,392 | 1,969 | ||||||||||||
Net gains on loan sales and commissions on loans originated for others | 3,883 | 3,504 | 11,534 | 9,616 | ||||||||||||
Net realized gains on securities | — | — | — | 299 | ||||||||||||
Net gains on interest rate swap contracts | 54 | 63 | 225 | 87 | ||||||||||||
Equity in earnings (losses) of unconsolidated subsidiaries | (47 | ) | 27 | (65 | ) | 114 | ||||||||||
Other income | 472 | 413 | 1,233 | 1,473 | ||||||||||||
Noninterest income, excluding other-than-temporary impairment losses | 17,400 | 16,921 | 49,732 | 47,536 | ||||||||||||
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 | 17,400 | 16,921 | 46,960 | 47,327 | ||||||||||||
Noninterest expense: | ||||||||||||||||
Salaries and employee benefits | 14,640 | 15,214 | 45,624 | 44,125 | ||||||||||||
Net occupancy | 1,404 | 1,468 | 4,282 | 4,521 | ||||||||||||
Equipment | 1,222 | 1,168 | 3,658 | 3,418 | ||||||||||||
Merchant processing costs | 2,862 | 2,707 | 6,746 | 6,690 | ||||||||||||
Outsourced services | 878 | 845 | 2,590 | 2,660 | ||||||||||||
FDIC deposit insurance costs | 448 | 427 | 1,330 | 1,311 | ||||||||||||
Legal, audit and professional fees | 529 | 598 | 1,691 | 1,599 | ||||||||||||
Advertising and promotion | 312 | 445 | 1,143 | 1,295 | ||||||||||||
Amortization of intangibles | 170 | 182 | 516 | 555 | ||||||||||||
Foreclosed property costs | 38 | 136 | 222 | 604 | ||||||||||||
Debt prepayment penalties | 1,125 | 1,173 | 1,125 | 2,134 | ||||||||||||
Other expenses | 1,920 | 1,927 | 5,810 | 6,005 | ||||||||||||
Total noninterest expense | 25,548 | 26,290 | 74,737 | 74,917 | ||||||||||||
Income before income taxes | 14,540 | 12,767 | 38,487 | 37,842 | ||||||||||||
Income tax expense | 4,580 | 3,867 | 12,123 | 11,791 | ||||||||||||
Net income | $9,960 | $8,900 | $26,364 | $26,051 | ||||||||||||
Weighted average common shares outstanding - basic | 16,563 | 16,366 | 16,473 | 16,351 | ||||||||||||
Weighted average common shares outstanding - diluted | 16,696 | 16,414 | 16,600 | 16,392 | ||||||||||||
Per share information: | Basic earnings per common share | $0.60 | $0.54 | $1.59 | $1.59 | |||||||||||
Diluted earnings per common share | $0.59 | $0.54 | $1.58 | $1.58 | ||||||||||||
Cash dividends declared per share | $0.26 | $0.24 | $0.76 | $0.70 |
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) | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | ||||||||||
Financial Data: | |||||||||||||||
Total assets | $3,131,958 | $3,061,307 | $3,051,848 | $3,071,884 | $3,048,868 | ||||||||||
Total loans | 2,353,766 | 2,384,980 | 2,325,045 | 2,294,003 | 2,256,697 | ||||||||||
Total securities | 419,349 | 350,517 | 387,102 | 415,879 | 483,858 | ||||||||||
Total deposits | 2,454,831 | 2,304,609 | 2,319,641 | 2,312,631 | 2,234,659 | ||||||||||
Total shareholders' equity | 323,585 | 303,370 | 301,291 | 295,652 | 298,394 | ||||||||||
Net interest income | 23,388 | 22,409 | 22,467 | 23,164 | 22,736 | ||||||||||
Provision for loan losses | 700 | 700 | 600 | 600 | 600 | ||||||||||
Noninterest income, excluding OTTI losses | 17,400 | 16,394 | 15,938 | 17,899 | 16,921 | ||||||||||
Net OTTI losses recognized in earnings | — | — | (2,772 | ) | (12 | ) | — | ||||||||
Noninterest expenses | 25,548 | 25,005 | 24,184 | 27,421 | 26,290 | ||||||||||
Income tax expense | 4,580 | 4,115 | 3,428 | 4,007 | 3,867 | ||||||||||
Net income | 9,960 | 8,983 | 7,421 | 9,023 | 8,900 | ||||||||||
Share Data: | |||||||||||||||
Basic earnings per common share | $0.60 | $0.54 | $0.45 | $0.55 | $0.54 | ||||||||||
Diluted earnings per common share | $0.59 | $0.54 | $0.45 | $0.55 | $0.54 | ||||||||||
Dividends declared per share | $0.26 | $0.25 | $0.25 | $0.24 | $0.24 | ||||||||||
Book value per share | $19.51 | $18.40 | $18.34 | $18.05 | $18.23 | ||||||||||
Tangible book value per share - Non-GAAP (1) | $15.66 | $14.52 | $14.44 | $14.13 | $14.29 | ||||||||||
Market value per share | $31.43 | $28.52 | $27.38 | $26.31 | $26.27 | ||||||||||
Shares outstanding at end of period | 16,589 | 16,487 | 16,425 | 16,380 | 16,371 | ||||||||||
Weighted average common shares outstanding - basic | 16,563 | 16,454 | 16,401 | 16,376 | 16,366 | ||||||||||
Weighted average common shares outstanding - diluted | 16,696 | 16,581 | 16,449 | 16,425 | 16,414 | ||||||||||
Key Ratios: | |||||||||||||||
Return on average assets | 1.29 | % | 1.18 | % | 0.98 | % | 1.19 | % | 1.17 | % | |||||
Return on average tangible assets - Non-GAAP (1) | 1.31 | % | 1.21 | % | 1.01 | % | 1.21 | % | 1.19 | % | |||||
Return on average equity | 12.82 | % | 11.84 | % | 9.91 | % | 12.01 | % | 12.02 | % | |||||
Return on average tangible equity - Non-GAAP (1) | 16.13 | % | 15.01 | % | 12.62 | % | 15.29 | % | 15.37 | % | |||||
Capital Ratios: | |||||||||||||||
Tier 1 risk-based capital | 12.23% (i) | 11.85 | % | 12.25 | % | 12.01 | % | 11.93 | % | ||||||
Total risk-based capital | 13.44% (i) | 13.06 | % | 13.50 | % | 13.26 | % | 13.18 | % | ||||||
Tier 1 leverage ratio | 9.41% (i) | 9.32 | % | 9.53 | % | 9.30 | % | 9.11 | % | ||||||
Equity to assets | 10.33 | % | 9.91 | % | 9.87 | % | 9.62 | % | 9.79 | % | |||||
Tangible equity to tangible assets - Non-GAAP (1) | 8.47 | % | 7.99 | % | 7.94 | % | 7.69 | % | 7.84 | % | |||||
(i) - estimated | |||||||||||||||
Wealth Management Assets under Administration: | |||||||||||||||
Balance at beginning of period | $4,433,574 | $4,420,076 | $4,199,640 | $4,242,520 | $4,079,913 | ||||||||||
Net investment (depreciation) appreciation & income | 190,931 | (20,956 | ) | 213,979 | (5,887 | ) | 155,427 | ||||||||
Net client cash flows | (28,911 | ) | 34,454 | 6,457 | (36,993 | ) | 7,180 | ||||||||
Balance at end of period | $4,595,594 | $4,433,574 | $4,420,076 | $4,199,640 | $4,242,520 |
(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) | |||||||
Nine Months Ended | |||||||
(Dollars and shares in thousands, except per share amounts) | Sep 30, 2013 | Sep 30, 2012 | |||||
Financial Data: | |||||||
Net interest income | $68,264 | $67,532 | |||||
Provision for loan losses | 2,000 | 2,100 | |||||
Noninterest income, excluding OTTI losses | 49,732 | 47,536 | |||||
Net OTTI losses recognized in earnings | (2,772 | ) | (209 | ) | |||
Noninterest expenses | 74,737 | 74,917 | |||||
Income tax expense | 12,123 | 11,791 | |||||
Net income | 26,364 | 26,051 | |||||
Share Data: | |||||||
Basic earnings per common share | $1.59 | $1.59 | |||||
Diluted earnings per common share | $1.58 | $1.58 | |||||
Dividends declared per share | $0.76 | $0.70 | |||||
Weighted average common shares outstanding - basic | 16,473 | 16,351 | |||||
Weighted average common shares outstanding - diluted | 16,600 | 16,392 | |||||
Key Ratios: | |||||||
Return on average assets | 1.15 | % | 1.15 | % | |||
Return on average tangible assets - Non-GAAP (1) | 1.18 | % | 1.17 | % | |||
Return on average equity | 11.54 | % | 11.95 | % | |||
Return on average tangible equity - Non-GAAP (1) | 14.61 | % | 15.38 | % | |||
Asset Quality Data: | |||||||
Allowance for Loan Losses: | |||||||
Balance at beginning of period | $30,873 | $29,802 | |||||
Provision charged to earnings | 2,000 | 2,100 | |||||
Charge-offs | (5,319 | ) | (1,801 | ) | |||
Recoveries | 454 | 651 | |||||
Balance at end of period | $28,008 | $30,752 | |||||
Net Loan Charge-Offs (Recoveries): | |||||||
Commercial mortgages | $4,524 | ($169 | ) | ||||
Other commercial | 132 | 851 | |||||
Residential real estate mortgages | 45 | 218 | |||||
Consumer | 164 | 250 | |||||
Total | $4,865 | $1,150 | |||||
Net charge-offs to average loans (annualized) | 0.27 | % | 0.07 | % | |||
Wealth Management Assets Under Administration: | |||||||
Balance at beginning of period | $4,199,640 | $3,900,061 | |||||
Net investment appreciation & income | 383,954 | 321,686 | |||||
Net client cash flows | 12,000 | 20,773 | |||||
Balance at end of period | $4,595,594 | $4,242,520 |
(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 | ||||||||||||||
Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | ||||||||||
Average Yield / Rate (taxable equivalent basis): | ||||||||||||||
Assets: | ||||||||||||||
Commercial loans | 4.67 | % | 4.58 | % | 4.70 | % | 4.90 | % | 4.94 | % | ||||
Residential real estate loans, including mortgage loans held for sale | 4.06 | % | 4.14 | % | 4.26 | % | 4.23 | % | 4.32 | % | ||||
Consumer loans | 3.78 | % | 3.81 | % | 3.84 | % | 3.86 | % | 3.89 | % | ||||
Total loans | 4.35 | % | 4.34 | % | 4.44 | % | 4.53 | % | 4.59 | % | ||||
Cash, federal funds sold and other short-term investments | 0.21 | % | 0.22 | % | 0.21 | % | 0.26 | % | 0.26 | % | ||||
FHLBB stock | 0.38 | % | 0.42 | % | 0.39 | % | 0.48 | % | 0.51 | % | ||||
Taxable debt securities | 3.44 | % | 3.52 | % | 3.56 | % | 3.49 | % | 3.50 | % | ||||
Nontaxable debt securities | 5.87 | % | 5.94 | % | 5.98 | % | 5.89 | % | 5.83 | % | ||||
Corporate stocks | — | % | — | % | — | % | — | % | — | % | ||||
Total securities | 3.88 | % | 3.97 | % | 3.98 | % | 3.86 | % | 3.83 | % | ||||
Total interest-earning assets | 4.12 | % | 4.17 | % | 4.24 | % | 4.31 | % | 4.34 | % | ||||
Liabilities: | ||||||||||||||
Interest-bearing demand deposits | — | % | — | % | — | % | — | % | — | % | ||||
NOW accounts | 0.06 | % | 0.06 | % | 0.06 | % | 0.07 | % | 0.06 | % | ||||
Money market accounts | 0.31 | % | 0.29 | % | 0.29 | % | 0.28 | % | 0.26 | % | ||||
Savings accounts | 0.06 | % | 0.07 | % | 0.07 | % | 0.09 | % | 0.11 | % | ||||
Time deposits | 1.23 | % | 1.25 | % | 1.28 | % | 1.32 | % | 1.33 | % | ||||
FHLBB advances | 3.25 | % | 3.29 | % | 3.21 | % | 3.27 | % | 3.18 | % | ||||
Junior subordinated debentures | 4.22 | % | 7.82 | % | 4.79 | % | 4.75 | % | 4.74 | % | ||||
Other | 4.50 | % | 5.87 | % | 1.77 | % | 5.51 | % | 6.33 | % | ||||
Total interest-bearing liabilities | 1.01 | % | 1.11 | % | 1.11 | % | 1.19 | % | 1.27 | % | ||||
Interest rate spread (taxable equivalent basis) | 3.11 | % | 3.06 | % | 3.13 | % | 3.12 | % | 3.07 | % | ||||
Net interest margin (taxable equivalent basis) | 3.29 | % | 3.26 | % | 3.32 | % | 3.33 | % | 3.28 | % |
At September 30, 2013 | ||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||
(Dollars in thousands) | Cost (1) | Gains | Losses | Value | ||||||||||||
Securities Available for Sale: | ||||||||||||||||
Obligations of U.S. government-sponsored enterprises | $54,461 | $1,208 | $— | $55,669 | ||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | 218,598 | 9,943 | (36 | ) | 228,505 | |||||||||||
States and political subdivisions | 64,833 | 2,507 | — | 67,340 | ||||||||||||
Trust preferred securities: | ||||||||||||||||
Individual name issuers | 30,705 | — | (5,930 | ) | 24,775 | |||||||||||
Collateralized debt obligations | 1,264 | — | (839 | ) | 425 | |||||||||||
Corporate bonds | 11,133 | 254 | (16 | ) | 11,371 | |||||||||||
Total securities available for sale | 380,994 | 13,912 | (6,821 | ) | 388,085 | |||||||||||
Held to Maturity: | ||||||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | 31,264 | 698 | — | 31,962 | ||||||||||||
Total securities held to maturity | 31,264 | 698 | — | 31,962 | ||||||||||||
Total securities | $412,258 | $14,610 | ($6,821 | ) | $420,047 |
(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) | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | |||||||||||
Loans: | ||||||||||||||||
Commercial: | Mortgages | $727,375 | $758,437 | $729,968 | $710,813 | $693,221 | ||||||||||
Construction & development | 51,951 | 39,449 | 34,179 | 27,842 | 25,132 | |||||||||||
Other | 518,566 | 512,228 | 513,000 | 513,764 | 500,974 | |||||||||||
Total commercial | 1,297,892 | 1,310,114 | 1,277,147 | 1,252,419 | 1,219,327 | |||||||||||
Residential real estate: | Mortgages | 711,427 | 728,158 | 702,418 | 692,798 | 692,659 | ||||||||||
Homeowner construction | 20,265 | 20,713 | 21,943 | 24,883 | 22,753 | |||||||||||
Total residential real estate | 731,692 | 748,871 | 724,361 | 717,681 | 715,412 | |||||||||||
Consumer: | Home equity lines | 227,063 | 228,367 | 226,640 | 226,861 | 227,549 | ||||||||||
Home equity loans | 41,158 | 41,312 | 40,134 | 39,329 | 39,452 | |||||||||||
Other | 55,961 | 56,316 | 56,763 | 57,713 | 54,957 | |||||||||||
Total consumer | 324,182 | 325,995 | 323,537 | 323,903 | 321,958 | |||||||||||
Total loans | $2,353,766 | $2,384,980 | $2,325,045 | $2,294,003 | $2,256,697 |
At September 30, 2013 | |||||
(Dollars in thousands) | Balance | % of Total | |||
Commercial Real Estate Loans by Property Location: | |||||
Rhode Island, Connecticut, Massachusetts | $748,013 | 96.0 | % | ||
New York | 22,533 | 2.9 | % | ||
New Hampshire | 8,780 | 1.1 | % | ||
Total commercial real estate loans (1) | $779,326 | 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 September 30, 2013 | |||||
(Dollars in thousands) | Balance | % of Total | |||
Residential Mortgages by Property Location: | |||||
Rhode Island, Connecticut, Massachusetts | $709,595 | 96.9 | % | ||
New York, Virginia, New Jersey, Maryland, Pennsylvania, District of Columbia | 9,371 | 1.3 | % | ||
New Hampshire | 6,750 | 0.9 | % | ||
Ohio | 2,600 | 0.4 | % | ||
Washington, Oregon | 1,362 | 0.2 | % | ||
Georgia | 1,088 | 0.1 | % | ||
New Mexico | 470 | 0.1 | % | ||
Other | 456 | 0.1 | % | ||
Total residential mortgages | $731,692 | 100.0 | % |
Period End Balances At | ||||||||||||||||
(Dollars in thousands) | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | |||||||||||
Deposits: | ||||||||||||||||
Demand deposits | $420,075 | $358,797 | $375,156 | $379,889 | $352,330 | |||||||||||
NOW accounts | 301,250 | 301,096 | 294,136 | 291,174 | 267,495 | |||||||||||
Money market accounts | 623,631 | 540,012 | 503,414 | 496,402 | 459,671 | |||||||||||
Savings accounts | 292,765 | 293,405 | 284,983 | 274,934 | 268,191 | |||||||||||
Time deposits | 817,110 | 811,299 | 861,952 | 870,232 | 886,972 | |||||||||||
Total deposits | $2,454,831 | $2,304,609 | $2,319,641 | $2,312,631 | $2,234,659 | |||||||||||
Out-of-market brokered certificates of deposits included in time deposits | $106,231 | $96,177 | $103,045 | $102,636 | $98,603 | |||||||||||
In-market deposits, excluding out-of-market brokered certificates of deposit | $2,348,600 | $2,208,432 | $2,216,596 | $2,209,995 | $2,136,056 |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||||
SELECTED FINANCIAL HIGHLIGHTS (unaudited) | |||||||||||||||||||
Period End Balances At | |||||||||||||||||||
(Dollars in thousands) | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | ||||||||||||||
Asset Quality Data: | |||||||||||||||||||
Nonperforming Assets: | |||||||||||||||||||
Commercial mortgages | $8,956 | $9,976 | $14,953 | $10,681 | $5,956 | ||||||||||||||
Commercial construction and development | — | — | — | — | — | ||||||||||||||
Other commercial | 1,248 | 1,400 | 3,122 | 4,412 | 3,201 | ||||||||||||||
Residential real estate mortgages | 8,095 | 7,526 | 6,699 | 6,158 | 7,127 | ||||||||||||||
Consumer | 1,204 | 1,124 | 901 | 1,292 | 1,463 | ||||||||||||||
Total nonaccrual loans | $19,503 | $20,026 | $25,675 | $22,543 | $17,747 | ||||||||||||||
Nonaccrual investment securities | 425 | 397 | 404 | 843 | 929 | ||||||||||||||
Property acquired through foreclosure or repossession | 594 | 1,230 | 2,625 | 2,047 | 2,447 | ||||||||||||||
Total nonperforming assets | $20,522 | $21,653 | $28,704 | $25,433 | $21,123 | ||||||||||||||
Total past due loans to total loans | 1.02 | % | 1.09 | % | 1.13 | % | 1.22 | % | 1.05 | % | |||||||||
Nonperforming assets to total assets | 0.66 | % | 0.71 | % | 0.94 | % | 0.83 | % | 0.69 | % | |||||||||
Nonaccrual loans to total loans | 0.83 | % | 0.84 | % | 1.10 | % | 0.98 | % | 0.79 | % | |||||||||
Allowance for loan losses to nonaccrual loans | 143.61 | % | 139.24 | % | 121.28 | % | 136.95 | % | 173.28 | % | |||||||||
Allowance for loan losses to total loans | 1.19 | % | 1.17 | % | 1.34 | % | 1.35 | % | 1.36 | % | |||||||||
Troubled Debt Restructured Loans: | |||||||||||||||||||
Accruing troubled debt restructured loans: | |||||||||||||||||||
Commercial mortgages | $23,892 | $19,018 | $9,600 | $9,569 | $9,131 | ||||||||||||||
Other commercial | 1,576 | 2,602 | 6,554 | 6,577 | 6,880 | ||||||||||||||
Residential real estate mortgages | 870 | 876 | 1,599 | 1,123 | 386 | ||||||||||||||
Consumer | 239 | 242 | 244 | 154 | 158 | ||||||||||||||
Accruing troubled debt restructured loans | 26,577 | 22,738 | 17,997 | 17,423 | 16,555 | ||||||||||||||
Nonaccrual troubled debt restructured loans: | |||||||||||||||||||
Commercial mortgages | — | — | — | — | — | ||||||||||||||
Other commercial | 547 | 590 | 721 | 2,063 | 2,306 | ||||||||||||||
Residential real estate mortgages | — | 144 | 155 | 688 | 1,697 | ||||||||||||||
Consumer | 40 | 42 | 42 | 44 | 46 | ||||||||||||||
Nonaccrual troubled debt restructured loans | 587 | 776 | 918 | 2,795 | 4,049 | ||||||||||||||
Total troubled debt restructured loans | $27,164 | $23,514 | $18,915 | $20,218 | $20,604 |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||||
SELECTED FINANCIAL HIGHLIGHTS (unaudited) | |||||||||||||||||||
Period End Balances At | |||||||||||||||||||
(Dollars in thousands) | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | ||||||||||||||
Past Due Loans: | |||||||||||||||||||
Loans 30-59 Days Past Due: | |||||||||||||||||||
Commercial mortgages | $— | $— | $— | $373 | $3,978 | ||||||||||||||
Other commercial loans | 2,648 | 505 | 689 | 260 | 2,719 | ||||||||||||||
Residential real estate mortgages | 2,624 | 4,051 | 3,891 | 4,840 | 2,368 | ||||||||||||||
Consumer loans | 1,013 | 1,588 | 1,534 | 1,134 | 1,876 | ||||||||||||||
Loans 30-59 days past due | $6,285 | $6,144 | $6,114 | $6,607 | $10,941 | ||||||||||||||
Loans 60-89 Days Past Due: | |||||||||||||||||||
Commercial mortgages | $730 | $536 | $193 | $408 | $874 | ||||||||||||||
Other commercial loans | 8 | 34 | 341 | 296 | 1,169 | ||||||||||||||
Residential real estate mortgages | 1,960 | 1,697 | 1,451 | 1,951 | 821 | ||||||||||||||
Consumer loans | 328 | 689 | 461 | 385 | 1,213 | ||||||||||||||
Loans 60-89 days past due | $3,026 | $2,956 | $2,446 | $3,040 | $4,077 | ||||||||||||||
Loans 90 Days or more Past Due: | |||||||||||||||||||
Commercial mortgages | $8,226 | $8,895 | $9,852 | $10,300 | $2,495 | ||||||||||||||
Other commercial loans | 929 | 3,428 | 2,961 | 3,647 | 1,366 | ||||||||||||||
Residential real estate mortgages | 4,843 | 4,266 | 4,327 | 3,658 | 3,924 | ||||||||||||||
Consumer loans | 693 | 415 | 484 | 844 | 811 | ||||||||||||||
Loans 90 days or more past due | $14,691 | $17,004 | $17,624 | $18,449 | $8,596 | ||||||||||||||
Total Past Due Loans: | |||||||||||||||||||
Commercial mortgages | $8,956 | $9,431 | $10,045 | $11,081 | $7,347 | ||||||||||||||
Other commercial loans | 3,585 | 3,967 | 3,991 | 4,203 | 5,254 | ||||||||||||||
Residential real estate mortgages | 9,427 | 10,014 | 9,669 | 10,449 | 7,113 | ||||||||||||||
Consumer loans | 2,034 | 2,692 | 2,479 | 2,363 | 3,900 | ||||||||||||||
Total past due loans | $24,002 | $26,104 | $26,184 | $28,096 | $23,614 | ||||||||||||||
Accruing loans 90 days or more past due | $— | $2,431 | $— | $— | $— | ||||||||||||||
Nonaccrual loans included in past due loans | $17,275 | $17,208 | $19,000 | $20,979 | $14,471 |
For the Quarters Ended | |||||||||||||||||||
(Dollars in thousands) | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | ||||||||||||||
Allowance for Loan Losses: | |||||||||||||||||||
Balance at beginning of period | $27,884 | $31,139 | $30,873 | $30,752 | $30,448 | ||||||||||||||
Provision charged to earnings | 700 | 700 | 600 | 600 | 600 | ||||||||||||||
Charge-offs | (770 | ) | (4,175 | ) | (374 | ) | (534 | ) | (424 | ) | |||||||||
Recoveries | 194 | 220 | 40 | 55 | 128 | ||||||||||||||
Balance at end of period | $28,008 | $27,884 | $31,139 | $30,873 | $30,752 | ||||||||||||||
Net Loan Charge-Offs (Recoveries): | |||||||||||||||||||
Commercial mortgages | $602 | $3,814 | $108 | $212 | $212 | ||||||||||||||
Other commercial | (2 | ) | 63 | 71 | 225 | (22 | ) | ||||||||||||
Residential real estate mortgages | — | 36 | 9 | 39 | 41 | ||||||||||||||
Consumer | (24 | ) | 42 | 146 | 3 | 65 | |||||||||||||
Total | $576 | $3,955 | $334 | $479 | $296 |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||||||||||||
CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited) | |||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||
September 30, 2013 | June 30, 2013 | September 30, 2012 | |||||||||||||||||||||||||
Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||
Commercial loans | $1,297,705 | $15,274 | 4.67 | % | $1,291,244 | $14,747 | 4.58 | % | $1,193,006 | $14,814 | 4.94 | % | |||||||||||||||
Residential real estate loans, including mortgage loans held for sale | 780,323 | 7,991 | 4.06 | % | 762,363 | 7,877 | 4.14 | % | 739,744 | 8,041 | 4.32 | % | |||||||||||||||
Consumer loans | 323,398 | 3,083 | 3.78 | % | 325,539 | 3,090 | 3.81 | % | 320,431 | 3,133 | 3.89 | % | |||||||||||||||
Total loans | 2,401,426 | 26,348 | 4.35 | % | 2,379,146 | 25,714 | 4.34 | % | 2,253,181 | 25,988 | 4.59 | % | |||||||||||||||
Cash, federal funds sold and short-term investments | 87,048 | 47 | 0.21 | % | 44,690 | 24 | 0.22 | % | 40,984 | 27 | 0.26 | % | |||||||||||||||
FHLBB stock | 37,730 | 36 | 0.38 | % | 37,730 | 39 | 0.42 | % | 40,418 | 52 | 0.51 | % | |||||||||||||||
Taxable debt securities | 297,532 | 2,582 | 3.44 | % | 293,586 | 2,576 | 3.52 | % | 417,525 | 3,672 | 3.50 | % | |||||||||||||||
Nontaxable debt securities | 64,836 | 960 | 5.87 | % | 66,468 | 985 | 5.94 | % | 68,815 | 1,008 | 5.83 | % | |||||||||||||||
Corporate stocks | — | — | — | % | — | — | — | % | — | — | — | % | |||||||||||||||
Total securities | 362,368 | 3,542 | 3.88 | % | 360,054 | 3,561 | 3.97 | % | 486,340 | 4,680 | 3.83 | % | |||||||||||||||
Total interest-earning assets | 2,888,572 | 29,973 | 4.12 | % | 2,821,620 | 29,338 | 4.17 | % | 2,820,923 | 30,747 | 4.34 | % | |||||||||||||||
Noninterest-earning assets | 209,656 | 213,336 | 224,280 | ||||||||||||||||||||||||
Total assets | $3,098,228 | $3,034,956 | $3,045,203 | ||||||||||||||||||||||||
Liabilities and Shareholders' Equity: | |||||||||||||||||||||||||||
Interest-bearing demand deposits | $6,688 | $— | — | % | $135 | $— | — | % | $— | $— | — | % | |||||||||||||||
NOW accounts | 293,634 | 45 | 0.06 | % | 289,858 | 45 | 0.06 | % | 260,829 | 41 | 0.06 | % | |||||||||||||||
Money market accounts | 591,860 | 456 | 0.31 | % | 535,107 | 381 | 0.29 | % | 429,538 | 283 | 0.26 | % | |||||||||||||||
Savings accounts | 295,821 | 47 | 0.06 | % | 286,547 | 47 | 0.07 | % | 267,614 | 74 | 0.11 | % | |||||||||||||||
Time deposits | 811,850 | 2,516 | 1.23 | % | 843,462 | 2,623 | 1.25 | % | 896,770 | 2,993 | 1.33 | % | |||||||||||||||
FHLBB advances | 328,705 | 2,693 | 3.25 | % | 326,839 | 2,679 | 3.29 | % | 466,135 | 3,726 | 3.18 | % | |||||||||||||||
Junior subordinated debentures | 22,681 | 241 | 4.22 | % | 31,405 | 612 | 7.82 | % | 32,991 | 393 | 4.74 | % | |||||||||||||||
Other | 353 | 4 | 4.50 | % | 205 | 3 | 5.87 | % | 314 | 5 | 6.33 | % | |||||||||||||||
Total interest-bearing liabilities | 2,351,592 | 6,002 | 1.01 | % | 2,313,558 | 6,390 | 1.11 | % | 2,354,191 | 7,515 | 1.27 | % | |||||||||||||||
Demand deposits | 384,665 | 365,747 | 337,547 | ||||||||||||||||||||||||
Other liabilities | 51,186 | 52,249 | 57,315 | ||||||||||||||||||||||||
Shareholders' equity | 310,785 | 303,402 | 296,150 | ||||||||||||||||||||||||
Total liabilities and shareholders' equity | $3,098,228 | $3,034,956 | $3,045,203 | ||||||||||||||||||||||||
Net interest income (FTE) | $23,971 | $22,948 | $23,232 | ||||||||||||||||||||||||
Interest rate spread | 3.11 | % | 3.06 | % | 3.07 | % | |||||||||||||||||||||
Net interest margin | 3.29 | % | 3.26 | % | 3.28 | % |
(Dollars in thousands) | Three Months Ended | ||||||||||
Sep 30, 2013 | Jun 30, 2013 | Sep 30, 2012 | |||||||||
Commercial loans | $252 | $201 | $148 | ||||||||
Nontaxable debt securities | 331 | 338 | 348 | ||||||||
Corporate stocks | — | — | — | ||||||||
Total | $583 | $539 | $496 |
Washington Trust Bancorp, Inc. and Subsidiaries | ||||||||||||||||||
CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited) | ||||||||||||||||||
Nine Months Ended September 30, | 2013 | 2012 | ||||||||||||||||
Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | |||||||||||||
(Dollars in thousands) | ||||||||||||||||||
Assets: | ||||||||||||||||||
Commercial loans | $1,277,753 | $44,443 | 4.65 | % | $1,160,531 | $43,702 | 5.03 | % | ||||||||||
Residential real estate loans, including mortgage loans held for sale | 766,162 | 23,805 | 4.15 | % | 724,922 | 23,925 | 4.41 | % | ||||||||||
Consumer loans | 323,871 | 9,226 | 3.81 | % | 320,274 | 9,297 | 3.88 | % | ||||||||||
Total loans | 2,367,786 | 77,474 | 4.37 | % | 2,205,727 | 76,924 | 4.66 | % | ||||||||||
Cash, federal funds sold and short-term investments | 61,945 | 99 | 0.21 | % | 41,125 | 64 | 0.21 | % | ||||||||||
FHLBB stock | 38,409 | 113 | 0.39 | % | 40,812 | 158 | 0.52 | % | ||||||||||
Taxable debt securities | 304,854 | 8,003 | 3.51 | % | 451,602 | 12,118 | 3.58 | % | ||||||||||
Nontaxable debt securities | 66,444 | 2,949 | 5.93 | % | 70,389 | 3,107 | 5.90 | % | ||||||||||
Corporate stocks | — | — | — | % | 1,215 | 66 | 7.26 | % | ||||||||||
Total securities | 371,298 | 10,952 | 3.94 | % | 523,206 | 15,291 | 3.90 | % | ||||||||||
Total interest-earning assets | 2,839,438 | 88,638 | 4.17 | % | 2,810,870 | 92,437 | 4.39 | % | ||||||||||
Noninterest-earning assets | 211,108 | 222,387 | ||||||||||||||||
Total assets | $3,050,546 | $3,033,257 | ||||||||||||||||
Liabilities and Shareholders' Equity: | ||||||||||||||||||
Interest-bearing demand deposits | $2,299 | $— | — | % | $— | $— | — | % | ||||||||||
NOW accounts | 288,871 | 135 | 0.06 | % | 253,895 | 127 | 0.07 | % | ||||||||||
Money market accounts | 541,160 | 1,189 | 0.29 | % | 415,661 | 740 | 0.24 | % | ||||||||||
Savings accounts | 287,360 | 139 | 0.06 | % | 258,464 | 215 | 0.11 | % | ||||||||||
Time deposits | 841,418 | 7,891 | 1.25 | % | 895,864 | 9,128 | 1.36 | % | ||||||||||
FHLBB advances | 333,544 | 8,109 | 3.25 | % | 494,615 | 11,809 | 3.19 | % | ||||||||||
Junior subordinated debentures | 28,988 | 1,243 | 5.73 | % | 32,991 | 1,176 | 4.76 | % | ||||||||||
Other | 565 | 12 | 2.84 | % | 6,706 | 244 | 4.86 | % | ||||||||||
Total interest-bearing liabilities | 2,324,205 | 18,718 | 1.08 | % | 2,358,196 | 23,439 | 1.33 | % | ||||||||||
Demand deposits | 370,508 | 329,983 | ||||||||||||||||
Other liabilities | 51,250 | 54,456 | ||||||||||||||||
Shareholders' equity | 304,583 | 290,622 | ||||||||||||||||
Total liabilities and shareholders' equity | $3,050,546 | $3,033,257 | ||||||||||||||||
Net interest income (FTE) | $69,920 | $68,998 | ||||||||||||||||
Interest rate spread | 3.09 | % | 3.06 | % | ||||||||||||||
Net interest margin | 3.29 | % | 3.28 | % |
(Dollars in thousands) | |||||||
Nine Months Ended September 30, | 2013 | 2012 | |||||
Commercial loans | $642 | $377 | |||||
Nontaxable debt securities | 1,014 | 1,072 | |||||
Corporate stocks | — | 17 | |||||
Total | $1,656 | $1,466 |
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) | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | ||||||||||
Calculation of Tangible Book Value per Share: | |||||||||||||||
Total shareholders' equity at end of period | $323,585 | $303,370 | $301,291 | $295,652 | $298,394 | ||||||||||
Less: | |||||||||||||||
Goodwill | 58,114 | 58,114 | 58,114 | 58,114 | 58,114 | ||||||||||
Identifiable intangible assets, net | 5,657 | 5,827 | 6,000 | 6,173 | 6,346 | ||||||||||
Total tangible shareholders' equity at end of period | $259,814 | $239,429 | $237,177 | $231,365 | $233,934 | ||||||||||
Shares outstanding at end of period | 16,589 | 16,487 | 16,425 | 16,380 | 16,371 | ||||||||||
Book value per share - GAAP | $19.51 | $18.40 | $18.34 | $18.05 | $18.23 | ||||||||||
Tangible book value per share - Non-GAAP | $15.66 | $14.52 | $14.44 | $14.12 | $14.29 | ||||||||||
Calculation of Tangible Equity to Tangible Assets: | |||||||||||||||
Total tangible shareholders' equity at end of period | $259,814 | $239,429 | $237,177 | $231,365 | $233,934 | ||||||||||
Total assets at end of period | $3,131,958 | $3,061,307 | $3,051,848 | $3,071,884 | $3,048,868 | ||||||||||
Less: | |||||||||||||||
Goodwill | 58,114 | 58,114 | 58,114 | 58,114 | 58,114 | ||||||||||
Identifiable intangible assets, net | 5,657 | 5,827 | 6,000 | 6,173 | 6,346 | ||||||||||
Total tangible assets at end of period | $3,068,187 | $2,997,366 | $2,987,734 | $3,007,597 | $2,984,408 | ||||||||||
Equity to assets - GAAP | 10.33 | % | 9.91 | % | 9.87 | % | 9.62 | % | 9.79 | % | |||||
Tangible equity to tangible assets - Non-GAAP | 8.47 | % | 7.99 | % | 7.94 | % | 7.69 | % | 7.84 | % | |||||
Calculation of Return on Average Tangible Assets: | |||||||||||||||
Net income | $9,960 | $8,983 | $7,421 | $9,023 | $8,900 | ||||||||||
Total average assets | $3,098,228 | $3,034,956 | $3,017,583 | $3,044,764 | $3,045,203 | ||||||||||
Less: | |||||||||||||||
Average goodwill | 58,114 | 58,114 | 58,114 | 58,114 | 58,114 | ||||||||||
Average identifiable intangible assets, net | 5,739 | 5,912 | 6,085 | 6,257 | 6,434 | ||||||||||
Total average tangible assets | $3,034,375 | $2,970,930 | $2,953,384 | $2,980,393 | $2,980,655 | ||||||||||
Return on average assets - GAAP | 1.29 | % | 1.18 | % | 0.98 | % | 1.19 | % | 1.17 | % | |||||
Return on average tangible assets - Non-GAAP | 1.31 | % | 1.21 | % | 1.01 | % | 1.21 | % | 1.19 | % | |||||
Calculation of Return on Average Tangible Equity: | |||||||||||||||
Net income | $9,960 | $8,983 | $7,421 | $9,023 | $8,900 | ||||||||||
Total average shareholders' equity | $310,785 | $303,402 | $299,436 | $300,430 | $296,150 | ||||||||||
Less: | |||||||||||||||
Average goodwill | 58,114 | 58,114 | 58,114 | 58,114 | 58,114 | ||||||||||
Average identifiable intangible assets, net | 5,739 | 5,912 | 6,085 | 6,257 | 6,434 | ||||||||||
Total average tangible shareholders' equity | $246,932 | $239,376 | $235,237 | $236,059 | $231,602 | ||||||||||
Return on average shareholders' equity - GAAP | 12.82 | % | 11.84 | % | 9.91 | % | 12.01 | % | 12.02 | % | |||||
Return on average tangible shareholders' equity - Non-GAAP | 16.13 | % | 15.01 | % | 12.62 | % | 15.29 | % | 15.37 | % |
Washington Trust Bancorp, Inc. and Subsidiaries | ||||||
SUPPLEMENTAL INFORMATION - Non-GAAP Financial Measures (unaudited) | ||||||
Nine Months Ended | ||||||
(Dollars in thousands) | Sep 30, 2013 | Sep 30, 2012 | ||||
Calculation of return on average tangible assets: | ||||||
Net income | $26,364 | $26,051 | ||||
Total average assets | $3,050,546 | $3,033,257 | ||||
Less: | ||||||
Average goodwill | 58,114 | 58,114 | ||||
Average identifiable intangible assets, net | 5,911 | 6,619 | ||||
Total average tangible assets | $2,986,521 | $2,968,524 | ||||
Return on average assets - GAAP | 1.15 | % | 1.15 | % | ||
Return on average tangible assets - Non-GAAP | 1.18 | % | 1.17 | % | ||
Calculation of return on average tangible equity: | ||||||
Net income | $26,364 | $26,051 | ||||
Total average shareholders' equity | $304,583 | $290,622 | ||||
Less: | ||||||
Average goodwill | 58,114 | 58,114 | ||||
Average identifiable intangible assets, net | 5,911 | 6,619 | ||||
Total average tangible shareholders' equity | $240,558 | $225,889 | ||||
Return on average shareholders' equity - GAAP | 11.54 | % | 11.95 | % | ||
Return on average tangible shareholders' equity - Non-GAAP | 14.61 | % | 15.38 | % |
@`<``+:2@`]"H!L!SG[_PCWDEYS%F23Q))N8ZDE=23.4"ZCKEO
M<^GCR.\@7-20CW3EB_8\QN1KQB^9KJM7C-XUW7 EQ8YVD>+PUOBJ5WC8
M\E.W?&?MBS.F%;-<=:71=C$[?U%-+JP+UT[KB[Y!A,POPZY
M,O83<7Z.]S+'J.TVM]JM'^OK4Z0_CVQ?
1AU:21J:0YI:YKFG@YI!/`^-"*$`C!;E
MVWB=VX:7!9J,R8^;34`Z7`M<'-
4&QXF5>0DQ1./6YK;"R\
N[HT2(,K6)]%LH?IT[RN&+GM(1\P61<%*7O$A.>.^]CYC8&X)<%EVU
MI[44H!#)HC[KV$_L.;QT/!::TJ;^;(WIB-]X&/-XIU*^S+&2-<,@]YCP/V6G
MXS"'"E:#[KDMQ^)R3UVC0!W-OW1*S2?;6-G>N..SY/5-\*[:14S%)1KV=C6[
ML)6M+!-"NO'.$CMUG+9NJ(`=$@A\&U]Q';&2.1^8X[(-,988KV!MQ%0N:[4&
M.(TO&F@>""&N<.3BONW+M\;DQPQ_SW(6#A('B6SG=!+4-
0YS&\2]SM#33^
M'>W<_O3N1V$V[.[&88`N>(G.8V**M-4TS*22/=P:&`M:]W`,:W6X3&T?V]>@
MX&(;/;7RNYH6#:`I^N^V/6=IP](.G,J)&3?L.-MQ05=&6QVX9,VG$AFIVM@]YA-`7M:%4[&=LQW!?
MNN:P.G<5EEGN@J:-D#I+@OA=7@"_2W0\TTN`J0USBH[^!_-O>'C%Y,O;"A$3
M1(IO,*4/D#I.=%Q$C8HJ$EU&LQ$O&+PG2"OU2?)+C&/CI^LR<^JBH!VKAT@M
M)/<#8N![J;6;;.?'UBSJVETRCM#G-JUP(]^*04UMK1S:.%'M8YL=[#WOG.V.
MYG7#6/Z0?TKNV=5NMK74-]O)(>48DH6O/H:'
MM9K/Q6%SO!;7WGVI?[OV'<8_%M+\E#(R>-@YR&.H
GY&KF'C1URWAPX5*WEB
M)^\7
#'D\0U[RO+L_
MW4N-@97YCD7/?M:Z>.JWB3"[D)XQZ0.$C1Q>P#@7,8%T+:U9("XUV"MM4F8V
MQ5BSP\;8*[/P[M%_$S<),,T9"+E8Q\W.=!VPD&3@BJ2A#"4Y#`(#T'.<5U:W
M%E(E!.7U$QZ'A#M]V]@V;W;SF5RC2W;VW8);ECCQ&B9CG0'B0"6V
M_5)->$D=.!Y31OS?TV[NU6%QF,<'9_<$T=N]HX'7"]K9QP!(#I^D`*<8WUXC
MG9KT7J2MZ$TQJO2E12(G6]5T&JT2*.5($3O$*U#M(L\FY*!CB=_++MSNG"AC
M&.JNL