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 April 21, 2014* | |||
*Filed herewith |
WASHINGTON TRUST BANCORP, INC. | ||||
Date: | April 21, 2014 | By: | /s/ David V. Devault | |
David V. Devault | ||||
Vice Chair, Secretary and Chief Financial Officer |
• | The net interest margin for the first quarter was 3.34%, up from 3.24% for the fourth quarter of 2013. |
• | Asset quality continued to improve. Nonperforming assets were down by $5.5 million, or 28%, and total past due loans were down by $3.9 million, or 18%, from December 31, 2013. |
• | In March, we declared a quarterly dividend of 29 cents per share, representing a 2 cent increase over the dividend paid last quarter and our third consecutive quarterly dividend increase. |
• | Wealth management revenues decreased by $745 thousand, or 9%, reflecting a decline of $770 thousand in transaction-based revenues due to an above-average level of insurance commission income in the fourth quarter of 2013. |
• | Merchant processing fee revenue was down by $980 thousand, or 43%. As previously mentioned, the sale of this business line was consummated on March 1, 2014. See discussion below regarding the corresponding decrease in merchant processing expenses. |
• | Net gains on loan sales and commissions on loans originated for others declined by $312 thousand, or 20%, reflecting lower levels of mortgage loan refinancing and sales activity due to higher market interest rates. In the first quarter of 2014, residential mortgage loans sold to the secondary market amounted to $57.0 million, compared to $65.9 million in the fourth quarter of 2013. |
• | Net gains on interest rate swap contracts decreased by $466 thousand, or 65%, largely due to an above-average level of customer-related interest rate swap transactions in the fourth quarter of 2013. |
• | Debt prepayment penalty expense of $6.3 million was recognized in the first quarter of 2014. |
• | Divestiture costs of $355 thousand were expensed in the first quarter of 2014, in connection with the sale of the merchant processing services business line. These costs included $291 thousand in salaries and employee benefit expenses and $64 thousand of legal expenses. |
• | Charitable contribution expense (classified in other expenses) of $400 thousand was incurred in the fourth quarter of 2013. |
Washington Trust Bancorp, Inc. and Subsidiaries | ||||||||
CONSOLIDATED BALANCE SHEETS (unaudited) | ||||||||
(Dollars in thousands, except par value) | Mar 31, 2014 | Dec 31, 2013 | ||||||
Assets: | ||||||||
Cash and due from banks | $104,738 | $81,939 | ||||||
Short-term investments | 3,419 | 3,378 | ||||||
Mortgage loans held for sale, at fair value | 10,409 | 11,636 | ||||||
Securities: | ||||||||
Available for sale, at fair value | 361,000 | 392,903 | ||||||
Held to maturity, at amortized cost (fair value $29,180 in 2014 and $29,865 in 2013) | 28,889 | 29,905 | ||||||
Total securities | 389,889 | 422,808 | ||||||
Federal Home Loan Bank stock, at cost | 37,730 | 37,730 | ||||||
Loans: | ||||||||
Commercial | 1,337,283 | 1,363,335 | ||||||
Residential real estate | 810,393 | 772,674 | ||||||
Consumer | 330,927 | 326,875 | ||||||
Total loans | 2,478,603 | 2,462,884 | ||||||
Less allowance for loan losses | 27,043 | 27,886 | ||||||
Net loans | 2,451,560 | 2,434,998 | ||||||
Premises and equipment, net | 25,909 | 25,402 | ||||||
Investment in bank-owned life insurance | 57,118 | 56,673 | ||||||
Goodwill | 58,114 | 58,114 | ||||||
Identifiable intangible assets, net | 5,329 | 5,493 | ||||||
Other assets | 49,931 | 50,696 | ||||||
Total assets | $3,194,146 | $3,188,867 | ||||||
Liabilities: | ||||||||
Deposits: | ||||||||
Demand deposits | $445,570 | $440,785 | ||||||
NOW accounts | 311,461 | 309,771 | ||||||
Money market accounts | 704,434 | 666,646 | ||||||
Savings accounts | 293,322 | 297,357 | ||||||
Time deposits | 836,867 | 790,762 | ||||||
Total deposits | 2,591,654 | 2,505,321 | ||||||
Federal Home Loan Bank advances | 203,429 | 288,082 | ||||||
Junior subordinated debentures | 22,681 | 22,681 | ||||||
Other liabilities | 40,524 | 43,137 | ||||||
Total liabilities | 2,858,288 | 2,859,221 | ||||||
Shareholders’ Equity: | ||||||||
Common stock of $.0625 par value; authorized 30,000,000 shares; issued and outstanding 16,634,985 shares in 2014 and 16,613,561 shares in 2013 | 1,040 | 1,038 | ||||||
Paid-in capital | 98,596 | 97,566 | ||||||
Retained earnings | 236,999 | 232,595 | ||||||
Accumulated other comprehensive loss | (777 | ) | (1,553 | ) | ||||
Total shareholders’ equity | 335,858 | 329,646 | ||||||
Total liabilities and shareholders’ equity | $3,194,146 | $3,188,867 |
Washington Trust Bancorp, Inc. and Subsidiaries | ||||||||
CONSOLIDATED STATEMENTS OF INCOME (unaudited) | ||||||||
(Dollars and shares in thousands, except per share amounts) | ||||||||
Three months ended March 31, | 2014 | 2013 | ||||||
Interest income: | ||||||||
Interest and fees on loans | $25,589 | $25,223 | ||||||
Interest on securities: | Taxable | 2,942 | 2,845 | |||||
Nontaxable | 582 | 659 | ||||||
Dividends on Federal Home Loan Bank stock | 142 | 38 | ||||||
Other interest income | 35 | 28 | ||||||
Total interest and dividend income | 29,290 | 28,793 | ||||||
Interest expense: | ||||||||
Deposits | 2,969 | 3,194 | ||||||
Federal Home Loan Bank advances | 2,241 | 2,737 | ||||||
Junior subordinated debentures | 241 | 390 | ||||||
Other interest expense | 3 | 5 | ||||||
Total interest expense | 5,454 | 6,326 | ||||||
Net interest income | 23,836 | 22,467 | ||||||
Provision for loan losses | 300 | 600 | ||||||
Net interest income after provision for loan losses | 23,536 | 21,867 | ||||||
Noninterest income: | ||||||||
Wealth management revenues | 8,065 | 7,474 | ||||||
Merchant processing fees | 1,291 | 1,977 | ||||||
Net gains on loan sales and commissions on loans originated for others | 1,239 | 4,166 | ||||||
Service charges on deposit accounts | 754 | 791 | ||||||
Card interchange fees | 681 | 599 | ||||||
Income from bank-owned life insurance | 445 | 467 | ||||||
Net gains on interest rate swap contracts | 260 | 19 | ||||||
Equity in earnings (losses) of unconsolidated subsidiaries | (43 | ) | 39 | |||||
Gain on sale of business line | 6,265 | — | ||||||
Other income | 413 | 406 | ||||||
Noninterest income, excluding other-than-temporary impairment losses | 19,370 | 15,938 | ||||||
Total other-than-temporary impairment losses on securities | — | (613 | ) | |||||
Portion of loss recognized in other comprehensive income (before tax) | — | (2,159 | ) | |||||
Net impairment losses recognized in earnings | — | (2,772 | ) | |||||
Total noninterest income | 19,370 | 13,166 | ||||||
Noninterest expense: | ||||||||
Salaries and employee benefits | 14,558 | 15,442 | ||||||
Net occupancy | 1,640 | 1,514 | ||||||
Equipment | 1,236 | 1,244 | ||||||
Merchant processing costs | 1,050 | 1,673 | ||||||
Outsourced services | 1,044 | 841 | ||||||
Legal, audit and professional fees | 618 | 608 | ||||||
FDIC deposit insurance costs | 440 | 431 | ||||||
Advertising and promotion | 232 | 355 | ||||||
Amortization of intangibles | 164 | 173 | ||||||
Foreclosed property costs | (22 | ) | 47 | |||||
Debt prepayment penalties | 6,294 | — | ||||||
Other expenses | 2,038 | 1,856 | ||||||
Total noninterest expense | 29,292 | 24,184 | ||||||
Income before income taxes | 13,614 | 10,849 | ||||||
Income tax expense | 4,316 | 3,428 | ||||||
Net income | $9,298 | $7,421 | ||||||
Weighted average common shares outstanding - basic | 16,626 | 16,401 | ||||||
Weighted average common shares outstanding - diluted | 16,800 | 16,449 | ||||||
Per share information: | Basic earnings per common share | $0.56 | $0.45 | |||||
Diluted earnings per common share | $0.55 | $0.45 | ||||||
Cash dividends declared per share | $0.29 | $0.25 |
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, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | ||||||||||
Financial Data: | |||||||||||||||
Total assets | $3,194,146 | $3,188,867 | $3,131,958 | $3,061,307 | $3,051,848 | ||||||||||
Total loans | 2,478,603 | 2,462,884 | 2,353,766 | 2,384,980 | 2,325,045 | ||||||||||
Total securities | 389,889 | 422,808 | 419,349 | 350,517 | 387,102 | ||||||||||
Total deposits | 2,591,654 | 2,505,321 | 2,454,831 | 2,304,609 | 2,319,641 | ||||||||||
Total shareholders' equity | 335,858 | 329,646 | 323,585 | 303,370 | 301,291 | ||||||||||
Net interest income | 23,836 | 23,521 | 23,388 | 22,409 | 22,467 | ||||||||||
Provision for loan losses | 300 | 400 | 700 | 700 | 600 | ||||||||||
Noninterest income, excluding OTTI losses | 19,370 | 15,837 | 17,400 | 16,394 | 15,938 | ||||||||||
Net OTTI losses recognized in earnings | — | (717 | ) | — | — | (2,772 | ) | ||||||||
Noninterest expense | 29,292 | 24,048 | 25,548 | 25,005 | 24,184 | ||||||||||
Income tax expense | 4,316 | 4,404 | 4,580 | 4,115 | 3,428 | ||||||||||
Net income | 9,298 | 9,789 | 9,960 | 8,983 | 7,421 | ||||||||||
Share Data: | |||||||||||||||
Basic earnings per common share | $0.56 | $0.59 | $0.60 | $0.54 | $0.45 | ||||||||||
Diluted earnings per common share | $0.55 | $0.58 | $0.59 | $0.54 | $0.45 | ||||||||||
Dividends declared per share | $0.29 | $0.27 | $0.26 | $0.25 | $0.25 | ||||||||||
Book value per share | $20.19 | $19.84 | $19.51 | $18.40 | $18.34 | ||||||||||
Tangible book value per share - Non-GAAP (1) | $16.38 | $16.01 | $15.66 | $14.52 | $14.44 | ||||||||||
Market value per share | $37.47 | $37.22 | $31.43 | $28.52 | $27.38 | ||||||||||
Shares outstanding at end of period | 16,635 | 16,614 | 16,589 | 16,487 | 16,425 | ||||||||||
Weighted average common shares outstanding - basic | 16,626 | 16,602 | 16,563 | 16,454 | 16,401 | ||||||||||
Weighted average common shares outstanding - diluted | 16,800 | 16,770 | 16,696 | 16,581 | 16,449 | ||||||||||
Key Ratios: | |||||||||||||||
Return on average assets | 1.17 | % | 1.24 | % | 1.29 | % | 1.18 | % | 0.98 | % | |||||
Return on average tangible assets - Non-GAAP (1) | 1.20 | % | 1.26 | % | 1.31 | % | 1.21 | % | 1.01 | % | |||||
Return on average equity | 11.10 | % | 11.98 | % | 12.82 | % | 11.84 | % | 9.91 | % | |||||
Return on average tangible equity - Non-GAAP (1) | 13.70 | % | 14.80 | % | 16.13 | % | 15.01 | % | 12.62 | % | |||||
Tier 1 risk-based capital | 12.42 | % | 12.12 | % | 12.23 | % | 11.85 | % | 12.25 | % | |||||
Total risk-based capital | 13.56 | % | 13.29 | % | 13.44 | % | 13.06 | % | 13.50 | % | |||||
Tier 1 leverage ratio | 9.56 | % | 9.41 | % | 9.41 | % | 9.32 | % | 9.53 | % | |||||
Equity to assets | 10.51 | % | 10.34 | % | 10.33 | % | 9.91 | % | 9.87 | % | |||||
Tangible equity to tangible assets - Non-GAAP (1) | 8.70 | % | 8.51 | % | 8.47 | % | 7.99 | % | 7.94 | % | |||||
(i) - estimated | |||||||||||||||
Wealth Management Revenues: | |||||||||||||||
Trust and investment management fees | $6,685 | $6,637 | $6,291 | $6,230 | $6,066 | ||||||||||
Mutual fund fees | 1,081 | 1,104 | 1,075 | 1,077 | 1,022 | ||||||||||
Asset-based revenues | 7,766 | 7,741 | 7,366 | 7,307 | 7,088 | ||||||||||
Transaction-based revenues | 299 | 1,069 | 263 | 605 | 386 | ||||||||||
Total wealth management revenues | $8,065 | $8,810 | $7,629 | $7,912 | $7,474 | ||||||||||
Wealth Management Assets under Administration: | |||||||||||||||
Balance at beginning of period | $4,781,958 | $4,595,594 | $4,433,574 | $4,420,076 | $4,199,640 | ||||||||||
Net investment appreciation (depreciation) & income | 44,335 | 248,727 | 190,931 | (20,956 | ) | 213,979 | |||||||||
Net client cash flows | (19,912 | ) | (62,363 | ) | (28,911 | ) | 34,454 | 6,457 | |||||||
Balance at end of period | $4,806,381 | $4,781,958 | $4,595,594 | $4,433,574 | $4,420,076 |
(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, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | ||||||||||
Average Yield / Rate (taxable equivalent basis): | ||||||||||||||
Assets: | ||||||||||||||
Commercial loans | 4.43 | % | 4.52 | % | 4.67 | % | 4.58 | % | 4.70 | % | ||||
Residential real estate loans, including mortgage loans held for sale | 4.15 | % | 4.09 | % | 4.06 | % | 4.14 | % | 4.26 | % | ||||
Consumer loans | 3.83 | % | 3.77 | % | 3.78 | % | 3.81 | % | 3.84 | % | ||||
Total loans | 4.26 | % | 4.28 | % | 4.35 | % | 4.34 | % | 4.44 | % | ||||
Cash, federal funds sold and other short-term investments | 0.23 | % | 0.22 | % | 0.21 | % | 0.22 | % | 0.21 | % | ||||
FHLBB stock | 1.53 | % | 0.37 | % | 0.38 | % | 0.42 | % | 0.39 | % | ||||
Taxable debt securities | 3.47 | % | 3.40 | % | 3.44 | % | 3.52 | % | 3.56 | % | ||||
Nontaxable debt securities | 5.98 | % | 5.88 | % | 5.87 | % | 5.94 | % | 5.98 | % | ||||
Total securities | 3.84 | % | 3.78 | % | 3.88 | % | 3.97 | % | 3.98 | % | ||||
Total interest-earning assets | 4.08 | % | 4.02 | % | 4.12 | % | 4.17 | % | 4.24 | % | ||||
Liabilities: | ||||||||||||||
Interest-bearing demand deposits | — | % | — | % | — | % | — | % | — | % | ||||
NOW accounts | 0.06 | % | 0.06 | % | 0.06 | % | 0.06 | % | 0.06 | % | ||||
Money market accounts | 0.36 | % | 0.34 | % | 0.31 | % | 0.29 | % | 0.29 | % | ||||
Savings accounts | 0.06 | % | 0.06 | % | 0.06 | % | 0.07 | % | 0.07 | % | ||||
Time deposits | 1.15 | % | 1.19 | % | 1.23 | % | 1.25 | % | 1.28 | % | ||||
FHLBB advances | 3.37 | % | 3.49 | % | 3.25 | % | 3.29 | % | 3.21 | % | ||||
Junior subordinated debentures | 4.31 | % | 4.22 | % | 4.22 | % | 7.82 | % | 4.79 | % | ||||
Other | 7.03 | % | 2.52 | % | 4.50 | % | 5.87 | % | 1.77 | % | ||||
Total interest-bearing liabilities | 0.93 | % | 0.98 | % | 1.01 | % | 1.11 | % | 1.11 | % | ||||
Interest rate spread (taxable equivalent basis) | 3.15 | % | 3.04 | % | 3.11 | % | 3.06 | % | 3.13 | % | ||||
Net interest margin (taxable equivalent basis) | 3.34 | % | 3.24 | % | 3.29 | % | 3.26 | % | 3.32 | % |
At March 31, 2014 | ||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||
(Dollars in thousands) | Cost (1) | Gains | Losses | Value | ||||||||||||
Securities Available for Sale: | ||||||||||||||||
Obligations of U.S. government-sponsored enterprises | $39,487 | $391 | $— | $39,878 | ||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | 218,882 | 8,753 | (89 | ) | 227,546 | |||||||||||
Obligations of states and political subdivisions | 59,826 | 2,110 | — | 61,936 | ||||||||||||
Individual name issuer trust preferred debt securities | 30,724 | — | (5,344 | ) | 25,380 | |||||||||||
Corporate bonds | 6,124 | 144 | (8 | ) | 6,260 | |||||||||||
Total securities available for sale | 355,043 | 11,398 | (5,441 | ) | 361,000 | |||||||||||
Held to Maturity: | ||||||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | 28,889 | 291 | — | 29,180 | ||||||||||||
Total securities held to maturity | 28,889 | 291 | — | 29,180 | ||||||||||||
Total securities | $383,932 | $11,689 | ($5,441 | ) | $390,180 |
(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, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | |||||||||||
Loans: | ||||||||||||||||
Commercial: | Mortgages | $788,836 | $796,249 | $727,375 | $758,437 | $729,968 | ||||||||||
Construction & development | 24,696 | 36,289 | 51,951 | 39,449 | 34,179 | |||||||||||
Other | 523,751 | 530,797 | 518,566 | 512,228 | 513,000 | |||||||||||
Total commercial | 1,337,283 | 1,363,335 | 1,297,892 | 1,310,114 | 1,277,147 | |||||||||||
Residential real estate: | Mortgages | 784,623 | 749,163 | 711,427 | 728,158 | 702,418 | ||||||||||
Homeowner construction | 25,770 | 23,511 | 20,265 | 20,713 | 21,943 | |||||||||||
Total residential real estate | 810,393 | 772,674 | 731,692 | 748,871 | 724,361 | |||||||||||
Consumer: | Home equity lines | 233,728 | 231,362 | 227,063 | 228,367 | 226,640 | ||||||||||
Home equity loans | 41,991 | 40,212 | 41,158 | 41,312 | 40,134 | |||||||||||
Other | 55,208 | 55,301 | 55,961 | 56,316 | 56,763 | |||||||||||
Total consumer | 330,927 | 326,875 | 324,182 | 325,995 | 323,537 | |||||||||||
Total loans | $2,478,603 | $2,462,884 | $2,353,766 | $2,384,980 | $2,325,045 |
At March 31, 2014 | |||||
(Dollars in thousands) | Balance | % of Total | |||
Commercial Real Estate Loans by Property Location: | |||||
Rhode Island, Connecticut, Massachusetts | $768,970 | 94.5 | % | ||
New York, New Jersey | 35,884 | 4.4 | % | ||
New Hampshire | 8,678 | 1.1 | % | ||
Total commercial real estate loans (1) | $813,532 | 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, 2014 | |||||
(Dollars in thousands) | Balance | % of Total | |||
Residential Mortgages by Property Location: | |||||
Rhode Island, Connecticut, Massachusetts | $788,659 | 97.2 | % | ||
New Hampshire | 9,066 | 1.1 | % | ||
New York, Virginia, New Jersey, Maryland, Pennsylvania, District of Columbia | 6,898 | 0.9 | % | ||
Ohio | 2,426 | 0.3 | % | ||
Washington, Oregon | 1,350 | 0.2 | % | ||
Georgia | 1,077 | 0.1 | % | ||
New Mexico | 466 | 0.1 | % | ||
Other | 451 | 0.1 | % | ||
Total residential mortgages | $810,393 | 100.0 | % |
Period End Balances At | ||||||||||||||||
(Dollars in thousands) | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | |||||||||||
Deposits: | ||||||||||||||||
Demand deposits | $445,570 | $440,785 | $420,075 | $358,797 | $375,156 | |||||||||||
NOW accounts | 311,461 | 309,771 | 301,250 | 301,096 | 294,136 | |||||||||||
Money market accounts | 704,434 | 666,646 | 623,631 | 540,012 | 503,414 | |||||||||||
Savings accounts | 293,322 | 297,357 | 292,765 | 293,405 | 284,983 | |||||||||||
Time deposits | 836,867 | 790,762 | 817,110 | 811,299 | 861,952 | |||||||||||
Total deposits | $2,591,654 | $2,505,321 | $2,454,831 | $2,304,609 | $2,319,641 | |||||||||||
Out-of-market brokered certificates of deposits included in time deposits | $171,275 | $98,009 | $106,231 | $96,177 | $103,045 | |||||||||||
In-market deposits, excluding out-of-market brokered certificates of deposit | $2,420,379 | $2,407,312 | $2,348,600 | $2,208,432 | $2,216,596 |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||||
SELECTED FINANCIAL HIGHLIGHTS (unaudited) | |||||||||||||||||||
Period End Balances At | |||||||||||||||||||
(Dollars in thousands) | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | ||||||||||||||
Asset Quality Data: | |||||||||||||||||||
Nonperforming Assets: | |||||||||||||||||||
Commercial mortgages | $2,293 | $7,492 | $8,956 | $9,976 | $14,953 | ||||||||||||||
Commercial construction and development | — | — | — | — | — | ||||||||||||||
Other commercial | 1,198 | 1,291 | 1,248 | 1,400 | 3,122 | ||||||||||||||
Residential real estate mortgages | 8,975 | 8,315 | 8,095 | 7,526 | 6,699 | ||||||||||||||
Consumer | 1,108 | 1,204 | 1,204 | 1,124 | 901 | ||||||||||||||
Total nonaccrual loans | 13,574 | 18,302 | 19,503 | 20,026 | 25,675 | ||||||||||||||
Nonaccrual investment securities | — | 547 | 425 | 397 | 404 | ||||||||||||||
Property acquired through foreclosure or repossession | 750 | 932 | 594 | 1,230 | 2,625 | ||||||||||||||
Total nonperforming assets | $14,324 | $19,781 | $20,522 | $21,653 | $28,704 | ||||||||||||||
Total past due loans to total loans | 0.73 | % | 0.89 | % | 1.02 | % | 1.09 | % | 1.13 | % | |||||||||
Nonperforming assets to total assets | 0.45 | % | 0.62 | % | 0.66 | % | 0.71 | % | 0.94 | % | |||||||||
Nonaccrual loans to total loans | 0.55 | % | 0.74 | % | 0.83 | % | 0.84 | % | 1.10 | % | |||||||||
Allowance for loan losses to nonaccrual loans | 199.23 | % | 152.37 | % | 143.61 | % | 139.24 | % | 121.28 | % | |||||||||
Allowance for loan losses to total loans | 1.09 | % | 1.13 | % | 1.19 | % | 1.17 | % | 1.34 | % | |||||||||
Troubled Debt Restructured Loans: | |||||||||||||||||||
Accruing troubled debt restructured loans: | |||||||||||||||||||
Commercial mortgages | $22,796 | $22,800 | $23,892 | $19,018 | $9,600 | ||||||||||||||
Other commercial | 989 | 1,265 | 1,576 | 2,602 | 6,554 | ||||||||||||||
Residential real estate mortgages | 1,467 | 1,442 | 870 | 876 | 1,599 | ||||||||||||||
Consumer | 233 | 236 | 239 | 242 | 244 | ||||||||||||||
Accruing troubled debt restructured loans | 25,485 | 25,743 | 26,577 | 22,738 | 17,997 | ||||||||||||||
Nonaccrual troubled debt restructured loans: | |||||||||||||||||||
Commercial mortgages | — | — | — | — | — | ||||||||||||||
Other commercial | 369 | 542 | 547 | 590 | 721 | ||||||||||||||
Residential real estate mortgages | 447 | — | — | 144 | 155 | ||||||||||||||
Consumer | 29 | 38 | 40 | 42 | 42 | ||||||||||||||
Nonaccrual troubled debt restructured loans | 845 | 580 | 587 | 776 | 918 | ||||||||||||||
Total troubled debt restructured loans | $26,330 | $26,323 | $27,164 | $23,514 | $18,915 |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||||
SELECTED FINANCIAL HIGHLIGHTS (unaudited) | |||||||||||||||||||
Period End Balances At | |||||||||||||||||||
(Dollars in thousands) | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | ||||||||||||||
Past Due Loans: | |||||||||||||||||||
Loans 30-59 Days Past Due: | |||||||||||||||||||
Commercial mortgages | $— | $— | $— | $— | $— | ||||||||||||||
Other commercial loans | 3,351 | 276 | 2,648 | 505 | 689 | ||||||||||||||
Residential real estate mortgages | 2,232 | 4,040 | 2,624 | 4,051 | 3,891 | ||||||||||||||
Consumer loans | 1,365 | 1,322 | 1,013 | 1,588 | 1,534 | ||||||||||||||
Loans 30-59 days past due | $6,948 | $5,638 | $6,285 | $6,144 | $6,114 | ||||||||||||||
Loans 60-89 Days Past Due: | |||||||||||||||||||
Commercial mortgages | $15 | $— | $730 | $536 | $193 | ||||||||||||||
Other commercial loans | 127 | 302 | 8 | 34 | 341 | ||||||||||||||
Residential real estate mortgages | 1,265 | 1,285 | 1,960 | 1,697 | 1,451 | ||||||||||||||
Consumer loans | 658 | 166 | 328 | 689 | 461 | ||||||||||||||
Loans 60-89 days past due | $2,065 | $1,753 | $3,026 | $2,956 | $2,446 | ||||||||||||||
Loans 90 Days or more Past Due: | |||||||||||||||||||
Commercial mortgages | $2,238 | $7,492 | $8,226 | $8,895 | $9,852 | ||||||||||||||
Other commercial loans | 428 | 731 | 929 | 3,428 | 2,961 | ||||||||||||||
Residential real estate mortgages | 5,634 | 5,633 | 4,843 | 4,266 | 4,327 | ||||||||||||||
Consumer loans | 701 | 656 | 693 | 415 | 484 | ||||||||||||||
Loans 90 days or more past due | $9,001 | $14,512 | $14,691 | $17,004 | $17,624 | ||||||||||||||
Total Past Due Loans: | |||||||||||||||||||
Commercial mortgages | $2,253 | $7,492 | $8,956 | $9,431 | $10,045 | ||||||||||||||
Other commercial loans | 3,906 | 1,309 | 3,585 | 3,967 | 3,991 | ||||||||||||||
Residential real estate mortgages | 9,131 | 10,958 | 9,427 | 10,014 | 9,669 | ||||||||||||||
Consumer loans | 2,724 | 2,144 | 2,034 | 2,692 | 2,479 | ||||||||||||||
Total past due loans | $18,014 | $21,903 | $24,002 | $26,104 | $26,184 | ||||||||||||||
Accruing loans 90 days or more past due | $— | $— | $— | $2,431 | $— | ||||||||||||||
Nonaccrual loans included in past due loans | $11,487 | $15,591 | $17,275 | $17,208 | $19,000 |
For the Quarters Ended | |||||||||||||||||||
(Dollars in thousands) | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | ||||||||||||||
Allowance for Loan Losses: | |||||||||||||||||||
Balance at beginning of period | $27,886 | $28,008 | $27,884 | $31,139 | $30,873 | ||||||||||||||
Provision charged to earnings | 300 | 400 | 700 | 700 | 600 | ||||||||||||||
Charge-offs | (1,223 | ) | (703 | ) | (770 | ) | (4,175 | ) | (374 | ) | |||||||||
Recoveries | 80 | 181 | 194 | 220 | 40 | ||||||||||||||
Balance at end of period | $27,043 | $27,886 | $28,008 | $27,884 | $31,139 | ||||||||||||||
Net Loan Charge-Offs (Recoveries): | |||||||||||||||||||
Commercial mortgages | $939 | $309 | $602 | $3,814 | $108 | ||||||||||||||
Other commercial | 170 | 73 | (2 | ) | 63 | 71 | |||||||||||||
Residential real estate mortgages | 7 | 80 | — | 36 | 9 | ||||||||||||||
Consumer | 27 | 60 | (24 | ) | 42 | 146 | |||||||||||||
Total | $1,143 | $522 | $576 | $3,955 | $334 |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||||||||||||
CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited) | |||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||
March 31, 2014 | December 31, 2013 | March 31, 2013 | |||||||||||||||||||||||||
Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||
Commercial loans | $1,336,798 | $14,601 | 4.43 | % | $1,310,584 | $14,944 | 4.52 | % | $1,243,716 | $14,421 | 4.70 | % | |||||||||||||||
Residential real estate loans, including mortgage loans held for sale | 802,412 | 8,208 | 4.15 | % | 771,272 | 7,947 | 4.09 | % | 755,528 | 7,937 | 4.26 | % | |||||||||||||||
Consumer loans | 327,793 | 3,097 | 3.83 | % | 323,778 | 3,078 | 3.77 | % | 322,668 | 3,053 | 3.84 | % | |||||||||||||||
Total loans | 2,467,003 | 25,906 | 4.26 | % | 2,405,634 | 25,969 | 4.28 | % | 2,321,912 | 25,411 | 4.44 | % | |||||||||||||||
Cash, federal funds sold and short-term investments | 62,246 | 35 | 0.23 | % | 104,718 | 59 | 0.22 | % | 53,734 | 28 | 0.21 | % | |||||||||||||||
FHLBB stock | 37,730 | 142 | 1.53 | % | 37,730 | 35 | 0.37 | % | 39,790 | 38 | 0.39 | % | |||||||||||||||
Taxable debt securities | 344,009 | 2,942 | 3.47 | % | 350,821 | 3,005 | 3.40 | % | 323,730 | 2,845 | 3.56 | % | |||||||||||||||
Nontaxable debt securities | 59,958 | 884 | 5.98 | % | 63,524 | 941 | 5.88 | % | 68,064 | 1,004 | 5.98 | % | |||||||||||||||
Total securities | 403,967 | 3,826 | 3.84 | % | 414,345 | 3,946 | 3.78 | % | 391,794 | 3,849 | 3.98 | % | |||||||||||||||
Total interest-earning assets | 2,970,946 | 29,909 | 4.08 | % | 2,962,427 | 30,009 | 4.02 | % | 2,807,230 | 29,326 | 4.24 | % | |||||||||||||||
Noninterest-earning assets | 203,335 | 200,615 | 210,338 | ||||||||||||||||||||||||
Total assets | $3,174,281 | $3,163,042 | $3,017,568 | ||||||||||||||||||||||||
Liabilities and Shareholders' Equity: | |||||||||||||||||||||||||||
Interest-bearing demand deposits | $10,767 | $— | — | % | $10,877 | $— | — | % | $— | $— | — | % | |||||||||||||||
NOW accounts | 304,201 | 47 | 0.06 | % | 300,113 | 48 | 0.06 | % | 283,004 | 45 | 0.06 | % | |||||||||||||||
Money market accounts | 685,142 | 609 | 0.36 | % | 653,731 | 560 | 0.34 | % | 495,453 | 351 | 0.29 | % | |||||||||||||||
Savings accounts | 292,809 | 45 | 0.06 | % | 293,434 | 47 | 0.06 | % | 279,536 | 46 | 0.07 | % | |||||||||||||||
Time deposits | 797,458 | 2,268 | 1.15 | % | 802,979 | 2,411 | 1.19 | % | 869,576 | 2,752 | 1.28 | % | |||||||||||||||
FHLBB advances | 269,989 | 2,241 | 3.37 | % | 288,212 | 2,534 | 3.49 | % | 345,270 | 2,738 | 3.22 | % | |||||||||||||||
Junior subordinated debentures | 22,681 | 241 | 4.31 | % | 22,681 | 241 | 4.22 | % | 32,991 | 390 | 4.79 | % | |||||||||||||||
Other | 173 | 3 | 7.03 | % | 629 | 4 | 2.52 | % | 1,146 | 4 | 1.42 | % | |||||||||||||||
Total interest-bearing liabilities | 2,383,220 | 5,454 | 0.93 | % | 2,372,656 | 5,845 | 0.98 | % | 2,306,976 | 6,326 | 1.11 | % | |||||||||||||||
Demand deposits | 422,975 | 425,316 | 360,851 | ||||||||||||||||||||||||
Other liabilities | 33,057 | 38,204 | 50,305 | ||||||||||||||||||||||||
Shareholders' equity | 335,029 | 326,866 | 299,436 | ||||||||||||||||||||||||
Total liabilities and shareholders' equity | $3,174,281 | $3,163,042 | $3,017,568 | ||||||||||||||||||||||||
Net interest income (FTE) | $24,455 | $24,164 | $23,000 | ||||||||||||||||||||||||
Interest rate spread | 3.15 | % | 3.04 | % | 3.13 | % | |||||||||||||||||||||
Net interest margin | 3.34 | % | 3.24 | % | 3.32 | % |
(Dollars in thousands) | Three Months Ended | ||||||||||
Mar 31, 2014 | Dec 31, 2013 | Mar 31, 2013 | |||||||||
Commercial loans | $317 | $320 | $188 | ||||||||
Nontaxable debt securities | 302 | 323 | 345 | ||||||||
Total | $619 | $643 | $533 |
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, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | ||||||||||
Calculation of Tangible Book Value per Share: | |||||||||||||||
Total shareholders' equity at end of period | $335,858 | $329,646 | $323,585 | $303,370 | $301,291 | ||||||||||
Less: | |||||||||||||||
Goodwill | 58,114 | 58,114 | 58,114 | 58,114 | 58,114 | ||||||||||
Identifiable intangible assets, net | 5,329 | 5,493 | 5,657 | 5,827 | 6,000 | ||||||||||
Total tangible shareholders' equity at end of period | $272,415 | $266,039 | $259,814 | $239,429 | $237,177 | ||||||||||
Shares outstanding at end of period | 16,635 | 16,614 | 16,589 | 16,487 | 16,425 | ||||||||||
Book value per share - GAAP | $20.19 | $19.84 | $19.51 | $18.40 | $18.34 | ||||||||||
Tangible book value per share - Non-GAAP | $16.38 | $16.01 | $15.66 | $14.52 | $14.44 | ||||||||||
Calculation of Tangible Equity to Tangible Assets: | |||||||||||||||
Total tangible shareholders' equity at end of period | $272,415 | $266,039 | $259,814 | $239,429 | $237,177 | ||||||||||
Total assets at end of period | $3,194,146 | $3,188,867 | $3,131,958 | $3,061,307 | $3,051,848 | ||||||||||
Less: | |||||||||||||||
Goodwill | 58,114 | 58,114 | 58,114 | 58,114 | 58,114 | ||||||||||
Identifiable intangible assets, net | 5,329 | 5,493 | 5,657 | 5,827 | 6,000 | ||||||||||
Total tangible assets at end of period | $3,130,703 | $3,125,260 | $3,068,187 | $2,997,366 | $2,987,734 | ||||||||||
Equity to assets - GAAP | 10.51 | % | 10.34 | % | 10.33 | % | 9.91 | % | 9.87 | % | |||||
Tangible equity to tangible assets - Non-GAAP | 8.70 | % | 8.51 | % | 8.47 | % | 7.99 | % | 7.94 | % | |||||
Calculation of Return on Average Tangible Assets: | |||||||||||||||
Net income | $9,298 | $9,789 | $9,960 | $8,983 | $7,421 | ||||||||||
Total average assets | $3,174,281 | $3,163,042 | $3,098,228 | $3,034,956 | $3,017,583 | ||||||||||
Less: | |||||||||||||||
Average goodwill | 58,114 | 58,114 | 58,114 | 58,114 | 58,114 | ||||||||||
Average identifiable intangible assets, net | 5,410 | 5,573 | 5,739 | 5,912 | 6,085 | ||||||||||
Total average tangible assets | $3,110,757 | $3,099,355 | $3,034,375 | $2,970,930 | $2,953,384 | ||||||||||
Return on average assets - GAAP | 1.17 | % | 1.24 | % | 1.29 | % | 1.18 | % | 0.98 | % | |||||
Return on average tangible assets - Non-GAAP | 1.20 | % | 1.26 | % | 1.31 | % | 1.21 | % | 1.01 | % | |||||
Calculation of Return on Average Tangible Equity: | |||||||||||||||
Net income | $9,298 | $9,789 | $9,960 | $8,983 | $7,421 | ||||||||||
Total average shareholders' equity | $335,029 | $326,866 | $310,785 | $303,402 | $299,436 | ||||||||||
Less: | |||||||||||||||
Average goodwill | 58,114 | 58,114 | 58,114 | 58,114 | 58,114 | ||||||||||
Average identifiable intangible assets, net | 5,410 | 5,573 | 5,739 | 5,912 | 6,085 | ||||||||||
Total average tangible shareholders' equity | $271,505 | $263,179 | $246,932 | $239,376 | $235,237 | ||||||||||
Return on average shareholders' equity - GAAP | 11.10 | % | 11.98 | % | 12.82 | % | 11.84 | % | 9.91 | % | |||||
Return on average tangible shareholders' equity - Non-GAAP | 13.70 | % | 14.80 | % | 16.13 | % | 15.01 | % | 12.62 | % |
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