Exhibit 99.1
NASDAQ: WASH
Contact: Elizabeth B. Eckel
Senior Vice President, Marketing
Telephone: (401) 348-1309
E-mail: ebeckel@washtrust.com
Date: July 21, 2014
FOR IMMEDIATE RELEASE
Washington Trust Reports Second Quarter 2014 Earnings
WESTERLY, R.I., July 21, 2014 (GLOBE NEWSWIRE)…Washington Trust Bancorp, Inc. (Nasdaq:WASH), parent company of The Washington Trust Company, today announced net income of $9.8 million, or 58 cents per diluted share, for the second quarter of 2014, up from first quarter of 2014 net income of $9.3 million, or 55 cents per diluted share.
“The momentum continued into the second quarter, as Washington Trust once again posted solid earnings, profitability and growth,” stated Joseph J. MarcAurele, Washington Trust Chairman and CEO. We had good growth across our business lines and surpassed $5 billion in wealth management assets under administration for the first time in our 214-year history.”
Selected highlights for the second quarter of 2014 included:
• | The returns on average equity and average assets were 11.52% and 1.22%, respectively. Comparable amounts for the first quarter of 2014 were 11.10% and 1.17%, respectively. |
• | Loan growth was solid in the quarter, totaling $102.5 million, or 4%. |
• | Residential mortgage origination volume was strong, and net gains on loan sales and commissions on loans originated for others increased by $468 thousand, or 38%, on a linked quarter basis. |
• | Wealth management assets under administration rose by $204.2 million, or 4%, from the end of March. |
Net Interest Income
Net interest income totaled $24.5 million for the second quarter of 2014, up from $23.8 million for the first quarter of 2014. The net interest margin was 3.35% for the second quarter of 2014, compared to 3.34% for the first quarter of 2014. Significant linked quarter changes included:
• | Average interest-earning assets increased by $36.3 million, while the yield on interest-earning assets declined by 5 basis points from the previous quarter. Average loan balances increased by $63.1 million, partially offset by declines in average investment security balances due to matured and called securities, as well as principal payments received on mortgage-backed securities. |
• | Average interest-bearing liabilities increased by $45.7 million, while the cost of funds declined by 8 basis points from the previous quarter. Average interest-bearing deposits increased by $95.6 million, offset, in part, by a $50 million decline in average Federal Home Loan Bank of Boston (FHLBB) advances largely due to a prepayment of higher rate advances in March 2014. |
Washington Trust
Page 2, April 21, 2014
Noninterest Income
Noninterest income totaled $12.8 million for the second quarter of 2014, compared to $19.4 million for the first quarter of 2014. Included in noninterest income were the following:
• | A net gain of $6.3 million (after-tax $4.0 million, or 24 cents per diluted share) was recognized in the first quarter of 2014 on the sale of the Corporation's merchant processing services business line. |
• | Prior to the consummation of this business line sale on March 1, 2014, merchant processing fee revenue of $1.3 million was recognized in the first quarter of 2014. See below regarding corresponding merchant processing expenses. |
Excluding these items recognized in the first quarter of 2014, noninterest income increased by $1.0 million, or 8%, compared to the first quarter of 2014. Significant linked quarter changes, on this basis, included the following:
• | Wealth management revenues increased by $465 thousand, or 6%, with increases of $317 thousand in transaction-based revenues and $148 thousand in asset-based revenues. The increase in transaction-based revenues was primarily attributable to a $285 thousand increase in seasonal tax preparation fees, which are typically concentrated in the second quarter. |
• | Net gains on loan sales and commissions on loans originated for others increased by $468 thousand, or 38%, reflecting higher levels of mortgage loan origination and sales activity due to a seasonal increase in home purchases, as well as lower market interest rates. Residential mortgage loans sold to the secondary market were $77.0 million in the second quarter, up from $57.0 million in the previous quarter. |
• | Net gains on interest rate swap contracts decreased by $297 thousand, or 114%, due to a lower level of customer-related interest rate swap transactions in the second quarter of 2014. |
• | Other income increased by $264 thousand, or 64%, and included $160 thousand of non-core income received in the second quarter of 2014. |
Noninterest Expenses
Noninterest expenses totaled $22.4 million for the second quarter of 2014, compared to $29.3 million for the first quarter of 2014. Included in noninterest expenses were the following:
• | Debt prepayment penalty expense of $6.3 million (after-tax $4.0 million, or 24 cents per diluted share) was recognized in the first quarter of 2014 on the prepayment of $99.3 million of FHLBB advances in March 2014. |
• | Divestiture costs of $355 thousand (after-tax $227 thousand, or 1 cent per diluted share) 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. |
• | Merchant processing expenses of $1.1 million were recognized in the first quarter of 2014, prior to the sale of that business line on March 1, 2014. See above regarding corresponding merchant processing fee revenue. |
Excluding these items recognized in the first quarter of 2014, noninterest expenses for the second quarter of 2014 increased by $855 thousand, or 4%, compared to the first quarter of 2014. Significant linked quarter changes, on this basis, included the following:
• | Salaries and employee benefit costs increased by $504 thousand, or 4%, including increased transaction-based compensation due to higher mortgage origination volume. |
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• | Advertising and promotion costs increased by $308 thousand, or 133%, reflecting seasonal promotion efforts. |
Income tax expense amounted to $4.6 million for the second quarter of 2014, compared to $4.3 million for the first quarter of 2014. The effective tax rate for the second quarter of 2014 was 31.9%, compared to 31.7% for the first quarter of 2014. Based on current federal and applicable state income tax statutes, the Corporation currently expects the effective tax rate to be approximately 31.8% for the remainder of 2014.
Asset Quality
Total nonaccrual loans amounted to $12.5 million, or 0.49% of total loans, at June 30, 2014, down from $13.6 million, or 0.55%, at March 31, 2014. Total past due loans amounted to $21.1 million, or 0.82% of total loans, at June 30, 2014, compared to $18.0 million, or 0.73%, at March 31, 2014.
The loan loss provision charged to earnings in the second quarter of 2014 totaled $450 thousand, up from $300 thousand in the first quarter of 2014. Net charge-offs amounted to $224 thousand in the second quarter of 2014. Net charge-offs totaled $1.1 million in the first quarter of 2014 and was largely comprised of a $853 thousand charge-off on one commercial mortgage relationship. The allowance for loan losses was $27.3 million, or 1.06% of total loans, at June 30, 2014, compared to $27.0 million, or 1.09% of total loans, at March 31, 2014.
Loans
Total loans amounted to $2.58 billion at June 30, 2014, up by $102.5 million, or 4%, from the balance at March 31, 2014. This increase was comprised of the following:
• | The residential real estate loan portfolio grew by $66.2 million, or 8%. |
• | Total commercial loans increased by $28.9 million, or 2%. The commercial and industrial loan portfolio grew by $31.1 million, while the commercial real estate portfolio declined by a modest $2.2 million. |
• | Consumer loans increased by $7.4 million, or 2%, concentrated in home equity lines and loans. |
Investment Securities
The securities portfolio amounted to $355.4 million, or 11% of total assets, at June 30, 2014, compared to $389.9 million, or 12%, at March 31, 2014. The decrease of $34.5 million was largely due to the maturity of a $29.5 million U.S. Government Agency security, $5.3 million of called securities of state and political subdivisions and principal payments received on mortgage-backed securities.
Deposits and Borrowings
Deposits totaled $2.59 billion at June 30, 2014, down by $5.6 million, or 0.2%, from the balance at March 31, 2014. This decrease was comprised of the following:
• | Demand deposit and NOW account balances declined by $31.4 million, or 4%. |
• | Money market and savings account balances increased by $66.4 million, or 7%. |
• | Time deposits declined by $40.6 million, or 5%. |
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FHLBB advances increased by $118.6 million from March 31, 2014, primarily to fund loan growth.
Capital Management
Capital levels continued to exceed the regulatory minimum levels to be considered well capitalized, with a total risk-based capital ratio of 13.24% at June 30, 2014, compared to 13.56% at March 31, 2014. Total shareholder's equity was $343.5 million at June 30, 2014, up by $7.6 million from March 31, 2014.
Dividends Declared
The Board of Directors declared a quarterly dividend of 29 cents per share for the quarter ended June 30, 2014. The dividend was paid on July 11, 2014 to shareholders of record on July 1, 2014.
Conference Call
Washington Trust will host a conference call to discuss second quarter results, business highlights and outlook on Tuesday, July 22, 2014 at 8:30 a.m. (Eastern Time). Individuals may dial in to the call at 1-877-259-5243. An audio replay of the call will be available by dialing 1-877-344-7529 and entering Conference Number 10048168; the audio replay will be available until 9:00 a.m. on August 6, 2014. A webcast of the call will be posted in the Investor Relations section of Washington Trust's web site, www.washtrustbancorp.com, shortly after the conclusion of the call and will be available through September 30, 2014.
Background
Washington Trust Bancorp, Inc. is the parent of The Washington Trust Company, a state-chartered bank headquartered in Westerly, Rhode Island. Founded in 1800, Washington Trust is the oldest community bank in the nation and is the largest independent bank headquartered in Rhode Island. Washington Trust offers a full range of financial services, including commercial banking, small business banking, personal banking, and wealth management and trust services through its offices located in Rhode Island, Connecticut and Massachusetts. The Corporation’s common stock trades on NASDAQ OMX® under the symbol WASH. Investor information is available on the Corporation’s web site: www.washtrustbancorp.com.
Forward-Looking Statements
This press release contains statements that are “forward-looking statements”. We may also make written or oral forward-looking statements in other documents we file with the SEC, in press releases and other written materials, and in oral statements made by our officers, directors or employees. You can identify forward-looking statements by the use of the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “assume,” “outlook,” “will,” “should,” and other expressions that predict or indicate future events and trends and which do not relate to historical matters. You should not rely on forward-looking statements, because they involve known and unknown risks, uncertainties and other factors, some of which are beyond the control of Washington Trust. These risks, uncertainties and other factors may cause the actual results, performance or achievements of Washington Trust to be materially different from the anticipated future results, performance or achievements expressed or implied by the forward-looking statements.
Some of the factors that might cause these differences include the following: continued weakness in national, regional or local economies; reductions in net interest income resulting from a sustained low interest rate environment 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 Corporation'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, as filed with the SEC and as updated by our Quarterly Reports on Form 10-Q and other SEC filings, 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 we assume no obligation to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes.
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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) | Jun 30, 2014 | Dec 31, 2013 | ||||||
Assets: | ||||||||
Cash and due from banks | $145,408 | $81,939 | ||||||
Short-term investments | 3,781 | 3,378 | ||||||
Mortgage loans held for sale, at fair value | 22,407 | 11,636 | ||||||
Securities: | ||||||||
Available for sale, at fair value | 327,578 | 392,903 | ||||||
Held to maturity, at amortized cost (fair value $28,618 in 2014 and $29,865 in 2013) | 27,814 | 29,905 | ||||||
Total securities | 355,392 | 422,808 | ||||||
Federal Home Loan Bank stock, at cost | 37,730 | 37,730 | ||||||
Loans: | ||||||||
Commercial | 1,366,170 | 1,363,335 | ||||||
Residential real estate | 876,639 | 772,674 | ||||||
Consumer | 338,315 | 326,875 | ||||||
Total loans | 2,581,124 | 2,462,884 | ||||||
Less allowance for loan losses | 27,269 | 27,886 | ||||||
Net loans | 2,553,855 | 2,434,998 | ||||||
Premises and equipment, net | 26,518 | 25,402 | ||||||
Investment in bank-owned life insurance | 57,559 | 56,673 | ||||||
Goodwill | 58,114 | 58,114 | ||||||
Identifiable intangible assets, net | 5,165 | 5,493 | ||||||
Other assets | 51,093 | 50,696 | ||||||
Total assets | $3,317,022 | $3,188,867 | ||||||
Liabilities: | ||||||||
Deposits: | ||||||||
Demand deposits | $411,586 | $440,785 | ||||||
NOW accounts | 314,060 | 309,771 | ||||||
Money market accounts | 772,084 | 666,646 | ||||||
Savings accounts | 292,112 | 297,357 | ||||||
Time deposits | 796,255 | 790,762 | ||||||
Total deposits | 2,586,097 | 2,505,321 | ||||||
Federal Home Loan Bank advances | 322,056 | 288,082 | ||||||
Junior subordinated debentures | 22,681 | 22,681 | ||||||
Other liabilities | 42,738 | 43,137 | ||||||
Total liabilities | 2,973,572 | 2,859,221 | ||||||
Shareholders’ Equity: | ||||||||
Common stock of $.0625 par value; authorized 30,000,000 shares; issued and outstanding 16,705,427 shares in 2014 and 16,613,561 shares in 2013 | 1,044 | 1,038 | ||||||
Paid-in capital | 99,288 | 97,566 | ||||||
Retained earnings | 241,918 | 232,595 | ||||||
Accumulated other comprehensive loss | 1,200 | (1,553 | ) | |||||
Total shareholders’ equity | 343,450 | 329,646 | ||||||
Total liabilities and shareholders’ equity | $3,317,022 | $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 | Six Months | ||||||||||||||
Periods ended June 30, | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Interest income: | ||||||||||||||||
Interest and fees on loans | $26,169 | $25,513 | $51,758 | $50,736 | ||||||||||||
Interest on securities: | Taxable | 2,699 | 2,576 | 5,641 | 5,421 | |||||||||||
Nontaxable | 557 | 647 | 1,139 | 1,306 | ||||||||||||
Dividends on Federal Home Loan Bank stock | 138 | 39 | 280 | 77 | ||||||||||||
Other interest income | 28 | 24 | 63 | 52 | ||||||||||||
Total interest and dividend income | 29,591 | 28,799 | 58,881 | 57,592 | ||||||||||||
Interest expense: | ||||||||||||||||
Deposits | 3,120 | 3,096 | 6,089 | 6,290 | ||||||||||||
Federal Home Loan Bank advances | 1,758 | 2,679 | 3,999 | 5,416 | ||||||||||||
Junior subordinated debentures | 241 | 612 | 482 | 1,002 | ||||||||||||
Other interest expense | 4 | 3 | 7 | 8 | ||||||||||||
Total interest expense | 5,123 | 6,390 | 10,577 | 12,716 | ||||||||||||
Net interest income | 24,468 | 22,409 | 48,304 | 44,876 | ||||||||||||
Provision for loan losses | 450 | 700 | 750 | 1,300 | ||||||||||||
Net interest income after provision for loan losses | 24,018 | 21,709 | 47,554 | 43,576 | ||||||||||||
Noninterest income: | ||||||||||||||||
Wealth management revenues | 8,530 | 7,912 | 16,595 | 15,386 | ||||||||||||
Merchant processing fees | — | 2,613 | 1,291 | 4,590 | ||||||||||||
Net gains on loan sales and commissions on loans originated for others | 1,707 | 3,485 | 2,946 | 7,651 | ||||||||||||
Service charges on deposit accounts | 824 | 790 | 1,578 | 1,581 | ||||||||||||
Card interchange fees | 779 | 683 | 1,460 | 1,282 | ||||||||||||
Income from bank-owned life insurance | 441 | 461 | 886 | 928 | ||||||||||||
Net gains on interest rate swap contracts | (37 | ) | 152 | 223 | 171 | |||||||||||
Equity in earnings (losses) of unconsolidated subsidiaries | (107 | ) | (57 | ) | (150 | ) | (18 | ) | ||||||||
Gain on sale of business line | — | — | 6,265 | — | ||||||||||||
Other income | 677 | 355 | 1,090 | 761 | ||||||||||||
Noninterest income, excluding other-than-temporary impairment losses | 12,814 | 16,394 | 32,184 | 32,332 | ||||||||||||
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 | 12,814 | 16,394 | 32,184 | 29,560 | ||||||||||||
Noninterest expense: | ||||||||||||||||
Salaries and employee benefits | 14,771 | 15,542 | 29,329 | 30,984 | ||||||||||||
Net occupancy | 1,475 | 1,364 | 3,115 | 2,878 | ||||||||||||
Equipment | 1,235 | 1,192 | 2,471 | 2,436 | ||||||||||||
Merchant processing costs | — | 2,211 | 1,050 | 3,884 | ||||||||||||
Outsourced services | 1,015 | 871 | 2,059 | 1,712 | ||||||||||||
Legal, audit and professional fees | 598 | 554 | 1,216 | 1,162 | ||||||||||||
FDIC deposit insurance costs | 413 | 451 | 853 | 882 | ||||||||||||
Advertising and promotion | 540 | 476 | 772 | 831 | ||||||||||||
Amortization of intangibles | 164 | 173 | 328 | 346 | ||||||||||||
Foreclosed property costs | 43 | 137 | 21 | 184 | ||||||||||||
Debt prepayment penalties | — | — | 6,294 | — | ||||||||||||
Other expenses | 2,194 | 2,034 | 4,232 | 3,890 | ||||||||||||
Total noninterest expense | 22,448 | 25,005 | 51,740 | 49,189 | ||||||||||||
Income before income taxes | 14,384 | 13,098 | 27,998 | 23,947 | ||||||||||||
Income tax expense | 4,587 | 4,115 | 8,903 | 7,543 | ||||||||||||
Net income | $9,797 | $8,983 | $19,095 | $16,404 | ||||||||||||
Weighted average common shares outstanding - basic | 16,678 | 16,454 | 16,653 | 16,428 | ||||||||||||
Weighted average common shares outstanding - diluted | 16,831 | 16,581 | 16,817 | 16,558 | ||||||||||||
Per share information: | Basic earnings per common share | $0.59 | $0.54 | $1.14 | $0.99 | |||||||||||
Diluted earnings per common share | $0.58 | $0.54 | $1.13 | $0.99 | ||||||||||||
Cash dividends declared per share | $0.29 | $0.25 | $0.58 | $0.50 | ||||||||||||
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) | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | ||||||||||
Financial Data: | |||||||||||||||
Total assets | $3,317,022 | $3,194,146 | $3,188,867 | $3,131,958 | $3,061,307 | ||||||||||
Total loans | 2,581,124 | 2,478,603 | 2,462,884 | 2,353,766 | 2,384,980 | ||||||||||
Total securities | 355,392 | 389,889 | 422,808 | 419,349 | 350,517 | ||||||||||
Total deposits | 2,586,097 | 2,591,654 | 2,505,321 | 2,454,831 | 2,304,609 | ||||||||||
Total shareholders' equity | 343,450 | 335,858 | 329,646 | 323,585 | 303,370 | ||||||||||
Net interest income | 24,468 | 23,836 | 23,521 | 23,388 | 22,409 | ||||||||||
Provision for loan losses | 450 | 300 | 400 | 700 | 700 | ||||||||||
Noninterest income, excluding OTTI losses | 12,814 | 19,370 | 15,837 | 17,400 | 16,394 | ||||||||||
Net OTTI losses recognized in earnings | — | — | (717 | ) | — | — | |||||||||
Noninterest expense | 22,448 | 29,292 | 24,048 | 25,548 | 25,005 | ||||||||||
Income tax expense | 4,587 | 4,316 | 4,404 | 4,580 | 4,115 | ||||||||||
Net income | 9,797 | 9,298 | 9,789 | 9,960 | 8,983 | ||||||||||
Share Data: | |||||||||||||||
Basic earnings per common share | $0.59 | $0.56 | $0.59 | $0.60 | $0.54 | ||||||||||
Diluted earnings per common share | $0.58 | $0.55 | $0.58 | $0.59 | $0.54 | ||||||||||
Dividends declared per share | $0.29 | $0.29 | $0.27 | $0.26 | $0.25 | ||||||||||
Book value per share | $20.56 | $20.19 | $19.84 | $19.51 | $18.40 | ||||||||||
Tangible book value per share - Non-GAAP (1) | $16.77 | $16.38 | $16.01 | $15.66 | $14.52 | ||||||||||
Market value per share | $36.77 | $37.47 | $37.22 | $31.43 | $28.52 | ||||||||||
Shares outstanding at end of period | 16,705 | 16,635 | 16,614 | 16,589 | 16,487 | ||||||||||
Weighted average common shares outstanding - basic | 16,678 | 16,626 | 16,602 | 16,563 | 16,454 | ||||||||||
Weighted average common shares outstanding - diluted | 16,831 | 16,800 | 16,770 | 16,696 | 16,581 | ||||||||||
Key Ratios: | |||||||||||||||
Return on average assets | 1.22 | % | 1.17 | % | 1.24 | % | 1.29 | % | 1.18 | % | |||||
Return on average tangible assets - Non-GAAP (1) | 1.24 | % | 1.20 | % | 1.26 | % | 1.31 | % | 1.21 | % | |||||
Return on average equity | 11.52 | % | 11.10 | % | 11.98 | % | 12.82 | % | 11.84 | % | |||||
Return on average tangible equity - Non-GAAP (1) | 14.15 | % | 13.70 | % | 14.80 | % | 16.13 | % | 15.01 | % | |||||
Tier 1 risk-based capital | 12.13% (i) | 12.42 | % | 12.12 | % | 12.23 | % | 11.85 | % | ||||||
Total risk-based capital | 13.24% (i) | 13.56 | % | 13.29 | % | 13.44 | % | 13.06 | % | ||||||
Tier 1 leverage ratio | 9.62% (i) | 9.56 | % | 9.41 | % | 9.41 | % | 9.32 | % | ||||||
Equity to assets | 10.35 | % | 10.51 | % | 10.34 | % | 10.33 | % | 9.91 | % | |||||
Tangible equity to tangible assets - Non-GAAP (1) | 8.61 | % | 8.70 | % | 8.51 | % | 8.47 | % | 7.99 | % | |||||
(i) - estimated | |||||||||||||||
Wealth Management Revenues: | |||||||||||||||
Trust and investment management fees | $6,828 | $6,685 | $6,637 | $6,291 | $6,230 | ||||||||||
Mutual fund fees | 1,086 | 1,081 | 1,104 | 1,075 | 1,077 | ||||||||||
Asset-based revenues | 7,914 | 7,766 | 7,741 | 7,366 | 7,307 | ||||||||||
Transaction-based revenues | 616 | 299 | 1,069 | 263 | 605 | ||||||||||
Total wealth management revenues | $8,530 | $8,065 | $8,810 | $7,629 | $7,912 | ||||||||||
Wealth Management Assets Under Administration: | |||||||||||||||
Balance at beginning of period | $4,806,381 | $4,781,958 | $4,595,594 | $4,433,574 | $4,420,076 | ||||||||||
Net investment appreciation (depreciation) & income | 131,269 | 44,335 | 248,727 | 190,931 | (20,956 | ) | |||||||||
Net client cash flows | 72,938 | (19,912 | ) | (62,363 | ) | (28,911 | ) | 34,454 | |||||||
Balance at end of period | $5,010,588 | $4,806,381 | $4,781,958 | $4,595,594 | $4,433,574 | ||||||||||
(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) | |||||||
Six Months Ended | |||||||
(Dollars and shares in thousands, except per share amounts) | Jun 30, 2014 | Jun 30, 2013 | |||||
Key Ratios: | |||||||
Return on average assets | 1.13 | % | 1.08 | % | |||
Return on average tangible assets - Non-GAAP (1) | 1.22 | % | 1.11 | % | |||
Return on average equity | 11.31 | % | 10.88 | % | |||
Return on average tangible equity - Non-GAAP (1) | 13.93 | % | 13.82 | % | |||
Allowance for Loan Losses: | |||||||
Balance at beginning of period | $27,886 | $30,873 | |||||
Provision charged to earnings | 750 | 1,300 | |||||
Charge-offs | (1,490 | ) | (4,549 | ) | |||
Recoveries | 123 | 260 | |||||
Balance at end of period | $27,269 | $27,884 | |||||
Net Loan Charge-Offs (Recoveries): | |||||||
Commercial mortgages | $965 | $3,922 | |||||
Other commercial | 265 | 134 | |||||
Residential real estate mortgages | 37 | 45 | |||||
Consumer | 100 | 188 | |||||
Total | $1,367 | $4,289 | |||||
Net charge-offs to average loans (annualized) | 0.11 | % | 0.37 | % | |||
Wealth Management Revenues: | |||||||
Trust and investment management fees | $13,513 | $12,296 | |||||
Mutual fund fees | 2,167 | 2,099 | |||||
Asset-based revenues | 15,680 | 14,395 | |||||
Transaction-based revenues | 915 | 991 | |||||
Total wealth management revenues | $16,595 | $15,386 | |||||
Wealth Management Assets Under Administration: | |||||||
Balance at beginning of period | $4,781,958 | $4,199,640 | |||||
Net investment appreciation & income | 175,604 | 193,023 | |||||
Net client cash flows | 53,026 | 40,911 | |||||
Balance at end of period | $5,010,588 | $4,433,574 | |||||
(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 | ||||||||||||||
Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | ||||||||||
Average Yield / Rate (taxable equivalent basis): | ||||||||||||||
Assets: | ||||||||||||||
Commercial loans | 4.35 | % | 4.43 | % | 4.52 | % | 4.67 | % | 4.58 | % | ||||
Residential real estate loans, including mortgage loans held for sale | 4.12 | % | 4.15 | % | 4.09 | % | 4.06 | % | 4.14 | % | ||||
Consumer loans | 3.81 | % | 3.83 | % | 3.77 | % | 3.78 | % | 3.81 | % | ||||
Total loans | 4.20 | % | 4.26 | % | 4.28 | % | 4.35 | % | 4.34 | % | ||||
Cash, federal funds sold and other short-term investments | 0.19 | % | 0.23 | % | 0.22 | % | 0.21 | % | 0.22 | % | ||||
FHLBB stock | 1.47 | % | 1.53 | % | 0.37 | % | 0.38 | % | 0.42 | % | ||||
Taxable debt securities | 3.36 | % | 3.47 | % | 3.40 | % | 3.44 | % | 3.52 | % | ||||
Nontaxable debt securities | 5.92 | % | 5.98 | % | 5.88 | % | 5.87 | % | 5.94 | % | ||||
Total securities | 3.74 | % | 3.84 | % | 3.78 | % | 3.88 | % | 3.97 | % | ||||
Total interest-earning assets | 4.03 | % | 4.08 | % | 4.02 | % | 4.12 | % | 4.17 | % | ||||
Liabilities: | ||||||||||||||
Interest-bearing demand deposits | — | % | — | % | — | % | — | % | — | % | ||||
NOW accounts | 0.06 | % | 0.06 | % | 0.06 | % | 0.06 | % | 0.06 | % | ||||
Money market accounts | 0.38 | % | 0.36 | % | 0.34 | % | 0.31 | % | 0.29 | % | ||||
Savings accounts | 0.06 | % | 0.06 | % | 0.06 | % | 0.06 | % | 0.07 | % | ||||
Time deposits | 1.14 | % | 1.15 | % | 1.19 | % | 1.23 | % | 1.25 | % | ||||
FHLBB advances | 3.20 | % | 3.37 | % | 3.49 | % | 3.25 | % | 3.29 | % | ||||
Junior subordinated debentures | 4.26 | % | 4.31 | % | 4.22 | % | 4.22 | % | 7.82 | % | ||||
Other | 9.90 | % | 7.03 | % | 2.52 | % | 4.50 | % | 5.87 | % | ||||
Total interest-bearing liabilities | 0.85 | % | 0.93 | % | 0.98 | % | 1.01 | % | 1.11 | % | ||||
Interest rate spread (taxable equivalent basis) | 3.18 | % | 3.15 | % | 3.04 | % | 3.11 | % | 3.06 | % | ||||
Net interest margin (taxable equivalent basis) | 3.35 | % | 3.34 | % | 3.24 | % | 3.29 | % | 3.26 | % | ||||
At June 30, 2014 | ||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||
(Dollars in thousands) | Cost (1) | Gains | Losses | Value | ||||||||||||
Securities Available for Sale: | ||||||||||||||||
Obligations of U.S. government-sponsored enterprises | $9,999 | $13 | $— | $10,012 | ||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | 217,767 | 10,531 | (13 | ) | 228,285 | |||||||||||
Obligations of states and political subdivisions | 54,161 | 2,230 | — | 56,391 | ||||||||||||
Individual name issuer trust preferred debt securities | 30,734 | — | (4,099 | ) | 26,635 | |||||||||||
Corporate bonds | 6,123 | 133 | (1 | ) | 6,255 | |||||||||||
Total securities available for sale | 318,784 | 12,907 | (4,113 | ) | 327,578 | |||||||||||
Held to Maturity: | ||||||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | 27,814 | 804 | — | 28,618 | ||||||||||||
Total securities held to maturity | 27,814 | 804 | — | 28,618 | ||||||||||||
Total securities | $346,598 | $13,711 | ($4,113 | ) | $356,196 | |||||||||||
(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) | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | |||||||||||
Loans: | ||||||||||||||||
Commercial: | Mortgages | $772,772 | $788,836 | $796,249 | $727,375 | $758,437 | ||||||||||
Construction & development | 38,574 | 24,696 | 36,289 | 51,951 | 39,449 | |||||||||||
Other | 554,824 | 523,751 | 530,797 | 518,566 | 512,228 | |||||||||||
Total commercial | 1,366,170 | 1,337,283 | 1,363,335 | 1,297,892 | 1,310,114 | |||||||||||
Residential real estate: | Mortgages | 846,187 | 784,623 | 749,163 | 711,427 | 728,158 | ||||||||||
Homeowner construction | 30,452 | 25,770 | 23,511 | 20,265 | 20,713 | |||||||||||
Total residential real estate | 876,639 | 810,393 | 772,674 | 731,692 | 748,871 | |||||||||||
Consumer: | Home equity lines | 237,390 | 233,728 | 231,362 | 227,063 | 228,367 | ||||||||||
Home equity loans | 45,632 | 41,991 | 40,212 | 41,158 | 41,312 | |||||||||||
Other | 55,293 | 55,208 | 55,301 | 55,961 | 56,316 | |||||||||||
Total consumer | 338,315 | 330,927 | 326,875 | 324,182 | 325,995 | |||||||||||
Total loans | $2,581,124 | $2,478,603 | $2,462,884 | $2,353,766 | $2,384,980 | |||||||||||
At June 30, 2014 | |||||
(Dollars in thousands) | Balance | % of Total | |||
Commercial Real Estate Loans by Property Location: | |||||
Rhode Island, Connecticut, Massachusetts | $773,099 | 95.2 | % | ||
New York, New Jersey | 29,620 | 3.7 | % | ||
New Hampshire | 8,627 | 1.1 | % | ||
Total commercial real estate loans (1) | $811,346 | 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 June 30, 2014 | |||||
(Dollars in thousands) | Balance | % of Total | |||
Residential Mortgages by Property Location: | |||||
Rhode Island, Connecticut, Massachusetts | $854,596 | 97.3 | % | ||
New Hampshire | 10,605 | 1.2 | % | ||
New York, Virginia, New Jersey, Maryland, Pennsylvania, District of Columbia | 5,872 | 0.7 | % | ||
Ohio | 2,237 | 0.3 | % | ||
Washington, Oregon | 1,344 | 0.2 | % | ||
Georgia | 1,072 | 0.1 | % | ||
New Mexico | 464 | 0.1 | % | ||
Other | 449 | 0.1 | % | ||
Total residential mortgages | $876,639 | 100.0 | % | ||
Period End Balances At | ||||||||||||||||
(Dollars in thousands) | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | |||||||||||
Deposits: | ||||||||||||||||
Demand deposits | $411,586 | $445,570 | $440,785 | $420,075 | $358,797 | |||||||||||
NOW accounts | 314,060 | 311,461 | 309,771 | 301,250 | 301,096 | |||||||||||
Money market accounts | 772,084 | 704,434 | 666,646 | 623,631 | 540,012 | |||||||||||
Savings accounts | 292,112 | 293,322 | 297,357 | 292,765 | 293,405 | |||||||||||
Time deposits | 796,255 | 836,867 | 790,762 | 817,110 | 811,299 | |||||||||||
Total deposits | $2,586,097 | $2,591,654 | $2,505,321 | $2,454,831 | $2,304,609 | |||||||||||
Out-of-market brokered certificates of deposits included in time deposits | $171,216 | $171,275 | $98,009 | $106,231 | $96,177 | |||||||||||
In-market deposits, excluding out-of-market brokered certificates of deposit | $2,414,881 | $2,420,379 | $2,407,312 | $2,348,600 | $2,208,432 | |||||||||||
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||||
SELECTED FINANCIAL HIGHLIGHTS (unaudited) | |||||||||||||||||||
Period End Balances At | |||||||||||||||||||
(Dollars in thousands) | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | ||||||||||||||
Asset Quality Data: | |||||||||||||||||||
Nonperforming Assets: | |||||||||||||||||||
Commercial mortgages | $2,290 | $2,293 | $7,492 | $8,956 | $9,976 | ||||||||||||||
Commercial construction and development | — | — | — | — | — | ||||||||||||||
Other commercial | 1,615 | 1,198 | 1,291 | 1,248 | 1,400 | ||||||||||||||
Residential real estate mortgages | 7,417 | 8,975 | 8,315 | 8,095 | 7,526 | ||||||||||||||
Consumer | 1,213 | 1,108 | 1,204 | 1,204 | 1,124 | ||||||||||||||
Total nonaccrual loans | 12,535 | 13,574 | 18,302 | 19,503 | 20,026 | ||||||||||||||
Nonaccrual investment securities | — | — | 547 | 425 | 397 | ||||||||||||||
Property acquired through foreclosure or repossession | 1,309 | 750 | 932 | 594 | 1,230 | ||||||||||||||
Total nonperforming assets | $13,844 | $14,324 | $19,781 | $20,522 | $21,653 | ||||||||||||||
Total past due loans to total loans | 0.82 | % | 0.73 | % | 0.89 | % | 1.02 | % | 1.09 | % | |||||||||
Nonperforming assets to total assets | 0.42 | % | 0.45 | % | 0.62 | % | 0.66 | % | 0.71 | % | |||||||||
Nonaccrual loans to total loans | 0.49 | % | 0.55 | % | 0.74 | % | 0.83 | % | 0.84 | % | |||||||||
Allowance for loan losses to nonaccrual loans | 217.54 | % | 199.23 | % | 152.37 | % | 143.61 | % | 139.24 | % | |||||||||
Allowance for loan losses to total loans | 1.06 | % | 1.09 | % | 1.13 | % | 1.19 | % | 1.17 | % | |||||||||
Troubled Debt Restructured Loans: | |||||||||||||||||||
Accruing troubled debt restructured loans: | |||||||||||||||||||
Commercial mortgages | $22,603 | $22,796 | $22,800 | $23,892 | $19,018 | ||||||||||||||
Other commercial | 969 | 989 | 1,265 | 1,576 | 2,602 | ||||||||||||||
Residential real estate mortgages | 1,459 | 1,467 | 1,442 | 870 | 876 | ||||||||||||||
Consumer | 167 | 233 | 236 | 239 | 242 | ||||||||||||||
Accruing troubled debt restructured loans | 25,198 | 25,485 | 25,743 | 26,577 | 22,738 | ||||||||||||||
Nonaccrual troubled debt restructured loans: | |||||||||||||||||||
Commercial mortgages | — | — | — | — | — | ||||||||||||||
Other commercial | 872 | 369 | 542 | 547 | 590 | ||||||||||||||
Residential real estate mortgages | 448 | 447 | — | — | 144 | ||||||||||||||
Consumer | — | 29 | 38 | 40 | 42 | ||||||||||||||
Nonaccrual troubled debt restructured loans | 1,320 | 845 | 580 | 587 | 776 | ||||||||||||||
Total troubled debt restructured loans | $26,518 | $26,330 | $26,323 | $27,164 | $23,514 | ||||||||||||||
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||||
SELECTED FINANCIAL HIGHLIGHTS (unaudited) | |||||||||||||||||||
Period End Balances At | |||||||||||||||||||
(Dollars in thousands) | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | ||||||||||||||
Past Due Loans: | |||||||||||||||||||
Loans 30-59 Days Past Due: | |||||||||||||||||||
Commercial mortgages | $311 | $— | $— | $— | $— | ||||||||||||||
Other commercial loans | 1,785 | 3,351 | 276 | 2,648 | 505 | ||||||||||||||
Residential real estate mortgages | 5,249 | 2,232 | 4,040 | 2,624 | 4,051 | ||||||||||||||
Consumer loans | 1,889 | 1,365 | 1,322 | 1,013 | 1,588 | ||||||||||||||
Loans 30-59 days past due | $9,234 | $6,948 | $5,638 | $6,285 | $6,144 | ||||||||||||||
Loans 60-89 Days Past Due: | |||||||||||||||||||
Commercial mortgages | $1,583 | $15 | $— | $730 | $536 | ||||||||||||||
Other commercial loans | 773 | 127 | 302 | 8 | 34 | ||||||||||||||
Residential real estate mortgages | 855 | 1,265 | 1,285 | 1,960 | 1,697 | ||||||||||||||
Consumer loans | 1,102 | 658 | 166 | 328 | 689 | ||||||||||||||
Loans 60-89 days past due | $4,313 | $2,065 | $1,753 | $3,026 | $2,956 | ||||||||||||||
Loans 90 Days or more Past Due: | |||||||||||||||||||
Commercial mortgages | $2,250 | $2,238 | $7,492 | $8,226 | $8,895 | ||||||||||||||
Other commercial loans | 417 | 428 | 731 | 929 | 3,428 | ||||||||||||||
Residential real estate mortgages | 4,335 | 5,634 | 5,633 | 4,843 | 4,266 | ||||||||||||||
Consumer loans | 512 | 701 | 656 | 693 | 415 | ||||||||||||||
Loans 90 days or more past due | $7,514 | $9,001 | $14,512 | $14,691 | $17,004 | ||||||||||||||
Total Past Due Loans: | |||||||||||||||||||
Commercial mortgages | $4,144 | $2,253 | $7,492 | $8,956 | $9,431 | ||||||||||||||
Other commercial loans | 2,975 | 3,906 | 1,309 | 3,585 | 3,967 | ||||||||||||||
Residential real estate mortgages | 10,439 | 9,131 | 10,958 | 9,427 | 10,014 | ||||||||||||||
Consumer loans | 3,503 | 2,724 | 2,144 | 2,034 | 2,692 | ||||||||||||||
Total past due loans | $21,061 | $18,014 | $21,903 | $24,002 | $26,104 | ||||||||||||||
Accruing loans 90 days or more past due | $— | $— | $— | $— | $2,431 | ||||||||||||||
Nonaccrual loans included in past due loans | $10,432 | $11,487 | $15,591 | $17,275 | $17,208 | ||||||||||||||
For the Quarters Ended | |||||||||||||||||||
(Dollars in thousands) | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | ||||||||||||||
Allowance for Loan Losses: | |||||||||||||||||||
Balance at beginning of period | $27,043 | $27,886 | $28,008 | $27,884 | $31,139 | ||||||||||||||
Provision charged to earnings | 450 | 300 | 400 | 700 | 700 | ||||||||||||||
Charge-offs | (267 | ) | (1,223 | ) | (703 | ) | (770 | ) | (4,175 | ) | |||||||||
Recoveries | 43 | 80 | 181 | 194 | 220 | ||||||||||||||
Balance at end of period | $27,269 | $27,043 | $27,886 | $28,008 | $27,884 | ||||||||||||||
Net Loan Charge-Offs (Recoveries): | |||||||||||||||||||
Commercial mortgages | $26 | $939 | $309 | $602 | $3,814 | ||||||||||||||
Other commercial | 95 | 170 | 73 | (2 | ) | 63 | |||||||||||||
Residential real estate mortgages | 30 | 7 | 80 | — | 36 | ||||||||||||||
Consumer | 73 | 27 | 60 | (24 | ) | 42 | |||||||||||||
Total | $224 | $1,143 | $522 | $576 | $3,955 | ||||||||||||||
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 | |||||||||||||||||||||||||||
June 30, 2014 | March 31, 2014 | June 30, 2013 | |||||||||||||||||||||||||
Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||
Commercial loans | $1,339,310 | $14,509 | 4.35 | % | $1,336,798 | $14,601 | 4.43 | % | $1,291,244 | $14,747 | 4.58 | % | |||||||||||||||
Residential real estate loans, including loans held for sale | 856,955 | 8,811 | 4.12 | % | 802,412 | 8,208 | 4.15 | % | 762,363 | 7,877 | 4.14 | % | |||||||||||||||
Consumer loans | 333,881 | 3,171 | 3.81 | % | 327,793 | 3,097 | 3.83 | % | 325,539 | 3,090 | 3.81 | % | |||||||||||||||
Total loans | 2,530,146 | 26,491 | 4.20 | % | 2,467,003 | 25,906 | 4.26 | % | 2,379,146 | 25,714 | 4.34 | % | |||||||||||||||
Cash, federal funds sold and short-term investments | 59,507 | 28 | 0.19 | % | 62,246 | 35 | 0.23 | % | 44,690 | 24 | 0.22 | % | |||||||||||||||
FHLBB stock | 37,730 | 138 | 1.47 | % | 37,730 | 142 | 1.53 | % | 37,730 | 39 | 0.42 | % | |||||||||||||||
Taxable debt securities | 322,418 | 2,699 | 3.36 | % | 344,009 | 2,942 | 3.47 | % | 293,586 | 2,576 | 3.52 | % | |||||||||||||||
Nontaxable debt securities | 57,422 | 847 | 5.92 | % | 59,958 | 884 | 5.98 | % | 66,468 | 985 | 5.94 | % | |||||||||||||||
Total securities | 379,840 | 3,546 | 3.74 | % | 403,967 | 3,826 | 3.84 | % | 360,054 | 3,561 | 3.97 | % | |||||||||||||||
Total interest-earning assets | 3,007,223 | 30,203 | 4.03 | % | 2,970,946 | 29,909 | 4.08 | % | 2,821,620 | 29,338 | 4.17 | % | |||||||||||||||
Noninterest-earning assets | 207,426 | 203,335 | 213,336 | ||||||||||||||||||||||||
Total assets | $3,214,649 | $3,174,281 | $3,034,956 | ||||||||||||||||||||||||
Liabilities and Shareholders' Equity: | |||||||||||||||||||||||||||
Interest-bearing demand deposits | $9,067 | $— | — | % | $10,767 | $— | — | % | $135 | $— | — | % | |||||||||||||||
NOW accounts | 311,948 | 47 | 0.06 | % | 304,201 | 47 | 0.06 | % | 289,858 | 45 | 0.06 | % | |||||||||||||||
Money market accounts | 759,704 | 713 | 0.38 | % | 685,142 | 609 | 0.36 | % | 535,107 | 381 | 0.29 | % | |||||||||||||||
Savings accounts | 291,671 | 45 | 0.06 | % | 292,809 | 45 | 0.06 | % | 286,547 | 47 | 0.07 | % | |||||||||||||||
Time deposits | 813,558 | 2,315 | 1.14 | % | 797,458 | 2,268 | 1.15 | % | 843,462 | 2,623 | 1.25 | % | |||||||||||||||
FHLBB advances | 220,088 | 1,758 | 3.20 | % | 269,989 | 2,241 | 3.37 | % | 326,839 | 2,679 | 3.29 | % | |||||||||||||||
Junior subordinated debentures | 22,681 | 241 | 4.26 | % | 22,681 | 241 | 4.31 | % | 31,405 | 612 | 7.82 | % | |||||||||||||||
Other | 162 | 4 | 9.90 | % | 173 | 3 | 7.03 | % | 205 | 3 | 5.87 | % | |||||||||||||||
Total interest-bearing liabilities | 2,428,879 | 5,123 | 0.85 | % | 2,383,220 | 5,454 | 0.93 | % | 2,313,558 | 6,390 | 1.11 | % | |||||||||||||||
Demand deposits | 409,851 | 422,975 | 365,747 | ||||||||||||||||||||||||
Other liabilities | 35,684 | 33,057 | 52,249 | ||||||||||||||||||||||||
Shareholders' equity | 340,235 | 335,029 | 303,402 | ||||||||||||||||||||||||
Total liabilities and shareholders' equity | $3,214,649 | $3,174,281 | $3,034,956 | ||||||||||||||||||||||||
Net interest income (FTE) | $25,080 | $24,455 | $22,948 | ||||||||||||||||||||||||
Interest rate spread | 3.18 | % | 3.15 | % | 3.06 | % | |||||||||||||||||||||
Net interest margin | 3.35 | % | 3.34 | % | 3.26 | % | |||||||||||||||||||||
Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:
(Dollars in thousands) | Three Months Ended | ||||||||||
Jun 30, 2014 | Mar 31, 2014 | Jun 30, 2013 | |||||||||
Commercial loans | $322 | $317 | $201 | ||||||||
Nontaxable debt securities | 290 | 302 | 338 | ||||||||
Total | $612 | $619 | $539 | ||||||||
Washington Trust Bancorp, Inc. and Subsidiaries | ||||||||||||||||||
CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited) | ||||||||||||||||||
Six Months Ended | ||||||||||||||||||
June 30, 2014 | June 30, 2013 | |||||||||||||||||
Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | |||||||||||||
(Dollars in thousands) | ||||||||||||||||||
Assets: | ||||||||||||||||||
Commercial loans | $1,338,061 | $29,109 | 4.39 | % | $1,267,612 | $29,168 | 4.64 | % | ||||||||||
Residential real estate loans, including loans held for sale | 829,834 | 17,019 | 4.14 | % | 758,964 | 15,814 | 4.20 | % | ||||||||||
Consumer loans | 330,854 | 6,268 | 3.82 | % | 324,111 | 6,143 | 3.82 | % | ||||||||||
Total loans | 2,498,749 | 52,396 | 4.23 | % | 2,350,687 | 51,125 | 4.39 | % | ||||||||||
Cash, federal funds sold and short-term investments | 60,869 | 63 | 0.21 | % | 49,186 | 52 | 0.21 | % | ||||||||||
FHLBB stock | 37,730 | 280 | 1.50 | % | 38,755 | 77 | 0.40 | % | ||||||||||
Taxable debt securities | 333,154 | 5,641 | 3.41 | % | 308,576 | 5,421 | 3.54 | % | ||||||||||
Nontaxable debt securities | 58,683 | 1,731 | 5.95 | % | 67,261 | 1,989 | 5.96 | % | ||||||||||
Total securities | 391,837 | 7,372 | 3.79 | % | 375,837 | 7,410 | 3.98 | % | ||||||||||
Total interest-earning assets | 2,989,185 | 60,111 | 4.06 | % | 2,814,465 | 58,664 | 4.20 | % | ||||||||||
Noninterest-earning assets | 205,391 | 211,845 | ||||||||||||||||
Total assets | $3,194,576 | $3,026,310 | ||||||||||||||||
Liabilities and Shareholders' Equity: | ||||||||||||||||||
Interest-bearing demand deposits | $9,912 | $— | — | % | $68 | $— | — | % | ||||||||||
NOW accounts | 308,096 | 94 | 0.06 | % | 286,450 | 90 | 0.06 | % | ||||||||||
Money market accounts | 722,629 | 1,322 | 0.37 | % | 515,390 | 732 | 0.29 | % | ||||||||||
Savings accounts | 292,237 | 90 | 0.06 | % | 283,059 | 93 | 0.07 | % | ||||||||||
Time deposits | 805,553 | 4,583 | 1.15 | % | 856,447 | 5,375 | 1.27 | % | ||||||||||
FHLBB advances | 244,900 | 3,999 | 3.29 | % | 336,004 | 5,416 | 3.25 | % | ||||||||||
Junior subordinated debentures | 22,681 | 482 | 4.29 | % | 32,194 | 1,002 | 6.28 | % | ||||||||||
Other | 168 | 7 | 8.40 | % | 673 | 8 | 2.40 | % | ||||||||||
Total interest-bearing liabilities | 2,406,176 | 10,577 | 0.89 | % | 2,310,285 | 12,716 | 1.11 | % | ||||||||||
Demand deposits | 416,377 | 363,313 | ||||||||||||||||
Other liabilities | 34,377 | 51,282 | ||||||||||||||||
Shareholders' equity | 337,646 | 301,430 | ||||||||||||||||
Total liabilities and shareholders' equity | $3,194,576 | $3,026,310 | ||||||||||||||||
Net interest income (FTE) | $49,534 | $45,948 | ||||||||||||||||
Interest rate spread | 3.17 | % | 3.09 | % | ||||||||||||||
Net interest margin | 3.34 | % | 3.29 | % | ||||||||||||||
Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:
(Dollars in thousands) | Six Months Ended | ||||||
Jun 30, 2014 | Jun 30, 2013 | ||||||
Commercial loans | $638 | $389 | |||||
Nontaxable debt securities | 592 | 683 | |||||
Total | $1,230 | $1,072 | |||||
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) | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | ||||||||||
Calculation of Tangible Book Value per Share: | |||||||||||||||
Total shareholders' equity at end of period | $343,450 | $335,858 | $329,646 | $323,585 | $303,370 | ||||||||||
Less: | |||||||||||||||
Goodwill | 58,114 | 58,114 | 58,114 | 58,114 | 58,114 | ||||||||||
Identifiable intangible assets, net | 5,165 | 5,329 | 5,493 | 5,657 | 5,827 | ||||||||||
Total tangible shareholders' equity at end of period | $280,171 | $272,415 | $266,039 | $259,814 | $239,429 | ||||||||||
Shares outstanding at end of period | 16,705 | 16,635 | 16,614 | 16,589 | 16,487 | ||||||||||
Book value per share - GAAP | $20.56 | $20.19 | $19.84 | $19.51 | $18.40 | ||||||||||
Tangible book value per share - Non-GAAP | $16.77 | $16.38 | $16.01 | $15.66 | $14.52 | ||||||||||
Calculation of Tangible Equity to Tangible Assets: | |||||||||||||||
Total tangible shareholders' equity at end of period | $280,171 | $272,415 | $266,039 | $259,814 | $239,429 | ||||||||||
Total assets at end of period | $3,317,022 | $3,194,146 | $3,188,867 | $3,131,958 | $3,061,307 | ||||||||||
Less: | |||||||||||||||
Goodwill | 58,114 | 58,114 | 58,114 | 58,114 | 58,114 | ||||||||||
Identifiable intangible assets, net | 5,165 | 5,329 | 5,493 | 5,657 | 5,827 | ||||||||||
Total tangible assets at end of period | $3,253,743 | $3,130,703 | $3,125,260 | $3,068,187 | $2,997,366 | ||||||||||
Equity to assets - GAAP | 10.35 | % | 10.51 | % | 10.34 | % | 10.33 | % | 9.91 | % | |||||
Tangible equity to tangible assets - Non-GAAP | 8.61 | % | 8.70 | % | 8.51 | % | 8.47 | % | 7.99 | % | |||||
Calculation of Return on Average Tangible Assets: | |||||||||||||||
Net income | $9,797 | $9,298 | $9,789 | $9,960 | $8,983 | ||||||||||
Total average assets | $3,214,649 | $3,174,281 | $3,163,042 | $3,098,228 | $3,034,956 | ||||||||||
Less: | |||||||||||||||
Average goodwill | 58,114 | 58,114 | 58,114 | 58,114 | 58,114 | ||||||||||
Average identifiable intangible assets, net | 5,245 | 5,410 | 5,573 | 5,739 | 5,912 | ||||||||||
Total average tangible assets | $3,151,290 | $3,110,757 | $3,099,355 | $3,034,375 | $2,970,930 | ||||||||||
Return on average assets - GAAP | 1.22 | % | 1.17 | % | 1.24 | % | 1.29 | % | 1.18 | % | |||||
Return on average tangible assets - Non-GAAP | 1.24 | % | 1.20 | % | 1.26 | % | 1.31 | % | 1.21 | % | |||||
Calculation of Return on Average Tangible Equity: | |||||||||||||||
Net income | $9,797 | $9,298 | $9,789 | $9,960 | $8,983 | ||||||||||
Total average shareholders' equity | $340,235 | $335,029 | $326,866 | $310,785 | $303,402 | ||||||||||
Less: | |||||||||||||||
Average goodwill | 58,114 | 58,114 | 58,114 | 58,114 | 58,114 | ||||||||||
Average identifiable intangible assets, net | 5,245 | 5,410 | 5,573 | 5,739 | 5,912 | ||||||||||
Total average tangible shareholders' equity | $276,876 | $271,505 | $263,179 | $246,932 | $239,376 | ||||||||||
Return on average shareholders' equity - GAAP | 11.52 | % | 11.10 | % | 11.98 | % | 12.82 | % | 11.84 | % | |||||
Return on average tangible shareholders' equity - Non-GAAP | 14.15 | % | 13.70 | % | 14.80 | % | 16.13 | % | 15.01 | % | |||||
Washington Trust Bancorp, Inc. and Subsidiaries | ||||||
SUPPLEMENTAL INFORMATION - Non-GAAP Financial Measures (unaudited) | ||||||
Six Months Ended | ||||||
(Dollars in thousands) | Jun 30, 2014 | Jun 30, 2013 | ||||
Calculation of return on average tangible assets: | ||||||
Net income | $19,095 | $16,404 | ||||
Total average assets | $3,194,576 | $3,026,310 | ||||
Less: | ||||||
Average goodwill | 58,114 | 58,114 | ||||
Average identifiable intangible assets, net | 5,327 | 5,998 | ||||
Total average tangible assets | $3,131,135 | $2,962,198 | ||||
Return on average assets - GAAP | 1.20 | % | 1.08 | % | ||
Return on average tangible assets - Non-GAAP | 1.22 | % | 1.11 | % | ||
Calculation of return on average tangible equity: | ||||||
Net income | $19,095 | $16,404 | ||||
Total average shareholders' equity | $337,646 | $301,430 | ||||
Less: | ||||||
Average goodwill | 58,114 | 58,114 | ||||
Average identifiable intangible assets, net | 5,327 | 5,998 | ||||
Total average tangible shareholders' equity | $274,205 | $237,318 | ||||
Return on average shareholders' equity - GAAP | 11.31 | % | 10.88 | % | ||
Return on average tangible shareholders' equity - Non-GAAP | 13.93 | % | 13.82 | % | ||