Exhibit 99.1
NASDAQ: WASH
Contact: Elizabeth B. Eckel
Senior Vice President, Marketing
Telephone: (401) 348-1309
E-mail: ebeckel@washtrust.com
Date: July 20, 2015
FOR IMMEDIATE RELEASE
Washington Trust Reports Record Second Quarter 2015 Earnings
WESTERLY, R.I., July 20, 2015 (GLOBE NEWSWIRE)…Washington Trust Bancorp, Inc. (Nasdaq:WASH), parent company of The Washington Trust Company, today announced net income of $11.5 million, or 68 cents per diluted share, for the second quarter of 2015, compared to net income of $11.0 million, or 65 cents per diluted share, reported for the first quarter of 2015.
"Washington Trust once again posted solid quarterly results, reflecting the strength of our diversified business model and our expanded regional presence," stated Joseph J. MarcAurele, Chairman and Chief Executive Officer. "In June we announced our intention to acquire Halsey Associates, Incorporated, a New Haven, Connecticut-based registered investment adviser. This acquisition, which we expect to complete during the third quarter, is significant as it further enhances our reputation as one of the premier wealth management firms and financial institutions in the region."
Selected highlights for the second quarter of 2015 include:
• | Second quarter net income and earnings per share were both record highs for Washington Trust. |
• | Returns on average equity and average assets improved to 12.88% and 1.27%, respectively. Comparable amounts for the first quarter of 2015 were 12.54% and 1.23%, respectively. |
• | Wealth management revenues totaled $8.9 million for the second quarter of 2015, up by $477 thousand, or 6%, from the first quarter of 2015. |
• | Net gains on loan sales and commissions on loans originated for others amounted to $2.7 million for the second quarter of 2015, up by $163 thousand, or 6%, from the prior quarter. |
• | Total loans amounted to $2.9 billion at June 30, 2015, up by $48.0 million, or 2%, from the previous quarter. |
Net Interest Income
Net interest income totaled $26.0 million for the second quarter of 2015, up by $326 thousand, or 1%, from the first quarter of 2015. The net interest margin was 3.15% for the second quarter of 2015, compared to 3.18% for the first quarter of 2015. Commercial loan prepayment fee income, which is included in net interest income, amounted to $519 thousand in the second quarter of 2015, compared to $266 thousand in the prior quarter. Excluding the loan prepayment fee income in each period, the second quarter net interest margin was 3.09%, down by 5 basis points on a linked quarter basis. Other significant linked quarter changes included:
Washington Trust
Page 2, July 20, 2015
• | Average interest-earning assets increased by $34.1 million, largely reflecting growth in average commercial loan balances. The yield on interest-earning assets, excluding the loan prepayment fee income contribution of 6 basis points and 3 basis points, respectively, was 3.74% for the second quarter of 2015, compared to 3.81% for the prior quarter. The 7 basis point decline from the previous quarter was largely due to runoff of higher yielding asset balances. |
• | Average interest-bearing liabilities increased by $24.7 million, with growth in average deposit balances, partially offset by a decline in Federal Home Loan Bank of Boston ("FHLBB") advances. The cost of interest-bearing liabilities declined by 3 basis points on a linked quarter basis. |
Noninterest Income
Noninterest income totaled $15.3 million for the second quarter of 2015, up by $1.2 million, or 9%, from the first quarter of 2015. Included in noninterest income were the following:
• | Wealth management revenues totaled $8.9 million for the second quarter of 2015, up by $477 thousand, or 6%, over the previous quarter. The increase included a $346 thousand increase in tax preparation fees, which are generally concentrated in the second quarter. Wealth management assets under administration amounted to $5.2 billion at June 30, 2015, up by 1% in the quarter and up by 4% in the last twelve months. |
• | Net gains on loan sales and commissions on loans originated for others totaled $2.7 million for the second quarter of 2015, up by $163 thousand, or 6%, on a linked quarter basis. Residential mortgage loans sold to the secondary market amounted to $143.2 million in the second quarter, up by $15.3 million, compared to the first quarter. |
• | Net gains on interest rate swap contracts remained relatively strong due to a continuation of borrower demand for these transactions. This revenue source amounted to $717 thousand in the second quarter, up modestly from the first quarter. |
• | Other income totaled $662 thousand for the second quarter of 2015, up by $360 thousand on a linked quarter basis. The increase was primarily due to a $250 thousand settlement payment received in the second quarter on a trust preferred debt obligation previously held by the Corporation. |
Noninterest Expenses
Noninterest expenses totaled $24.3 million for the second quarter of 2015, up by $768 thousand, or 3%, from the first quarter of 2015. Included in noninterest expenses in the second quarter were acquisition related expenses of $433 thousand. Excluding the acquisition expenses, noninterest expenses increased by $335 thousand, or 1%, which was largely attributable to an increase of $311 thousand in advertising and promotion expenses due to the timing of promotional activities.
Income tax expense amounted to $5.4 million for the second quarter of 2015, up by $206 thousand, or 4%, from the amount recognized in the previous quarter. The effective tax rate for the second quarter of 2015 was 31.9%, compared to 32.0% for the first quarter of 2015. The Corporation currently expects that its full-year 2015 effective tax rate will be approximately 32.5%.
Washington Trust
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Asset Quality
Asset quality metrics remained at stable and manageable levels in the second quarter of 2015. Total nonaccrual loans amounted to $15.1 million, or 0.52% of total loans, at June 30, 2015, down from $15.9 million, or 0.55%, at March 31, 2015. Total past due loans amounted to $24.0 million, or 0.82% of total loans, at June 30, 2015, up from $19.1 million, or 0.66% of total loans, at March 31, 2015. This increase was largely attributable to a well-secured commercial relationship.
A loan loss provision totaling $100 thousand was charged to earnings in the second quarter of 2015, compared to no loan loss provision recognized in the first quarter of 2015. The second quarter provision reflects loan loss allocations commensurate with growth in loan portfolio balances, offset by reductions in other loan loss exposures in response to continued improvement in credit quality conditions. Net charge-offs amounted to $323 thousand in the second quarter of 2015, compared to $213 thousand in the first quarter of 2015. The allowance for loan losses was $27.6 million, or 0.94% of total loans, at June 30, 2015, compared to $27.8 million, or 0.97% of total loans, at March 31, 2015.
Loans
Total loans amounted to $2.9 billion at June 30, 2015, up by $48.0 million, or 2%, from the balance at March 31, 2015.
• | Total commercial loans increased by $24.0 million, or 2%, in the second quarter of 2015. The commercial real estate portfolio grew by $32.7 million, or 3%, while the commercial and industrial portfolio declined by $8.7 million, or 1%. |
• | The residential real estate loan portfolio grew by $13.7 million, or 1%, from the first quarter of 2015. |
• | Consumer loans increased by $10.3 million, or 3%, with growth in home equity lines of credit. |
Investment Securities
The securities portfolio amounted to $373.9 million at June 30, 2015, up $8.9 million from the balance at March 31, 2015. The increase reflects purchases of U.S. government agency securities for balance sheet liquidity management purposes.
Deposits and Borrowings
Deposits totaled $2.7 billion at June 30, 2015, down by $44.0 million, or 2%, from the balance at March 31, 2015. Wholesale brokered time deposits decreased by $6.3 million from the previous quarter. Excluding wholesale brokered time deposits, in-market deposits declined by $37.8 million, or 2%. The largest outflow in the quarter was $32.0 million in the category of money market deposits, a portion of which is considered to be seasonal flows associated with governmental and other institutional depositors.
FHLBB advances amounted to $471.3 million at June 30, 2015, up by $85.3 million, or 22% from March 31, 2015.
Capital Management and Dividends
Capital levels at June 30, 2015 exceeded the regulatory minimum levels to be considered well capitalized, with a total risk-based capital ratio of 12.78% at June 30, 2015, compared to 12.80% at March 31, 2015. Total shareholder's equity was $359.2 million at June 30, 2015, up by $5.3 million from March 31, 2015.
The Board of Directors declared a quarterly dividend of 34 cents per share for the quarter ended June 30, 2015. The dividend was paid on July 14, 2015 to shareholders of record on July 1, 2015.
Washington Trust
Page 4, July 20, 2015
Acquisition of Halsey Associates, Incorporated
In June, we announced that we signed a definitive agreement to acquire Halsey Associates, Incorporated, a registered investment adviser firm located in New Haven, CT. Halsey specializes in providing investment counseling services to high-net worth families, corporations, foundations and endowment clients and has annualized revenues of approximately $4 million. The purchase price, including Washington Trust stock and cash to be paid at closing, plus estimated future earn-outs based on the future revenue growth of the acquired business during the 5-year period following the acquisition, will amount to approximately 6.5 times Halsey’s 2014 earnings before interest, taxes, depreciation and amortization. We expect to consummate this transaction in the third quarter. The transaction is expected to result in a modest reduction in tangible book value per share and capital ratios and is expected to be modestly accretive to earnings per share commencing in the latter part of 2015, following the recognition of estimated acquisition related expenses of approximately $900 thousand, which include $433 thousand recognized through June 30, 2015.
Conference Call
Washington Trust will host a conference call to discuss second quarter results, business highlights and outlook on Tuesday, July 21, 2015 at 8:30 a.m. (Eastern Time). Individuals may dial in to the call at 1-877-407-0784. An audio replay of the call will be available, shortly after the conclusion of the call, by dialing 1-877-870-5176 and entering the Replay PIN Number 13612145; the audio replay will be available through August 4, 2015. Also, a webcast of the call will be posted in the Investor Relations section of Washington Trust's web site, www.washtrustbancorp.com, and will be available through September 30, 2015.
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Background
Washington Trust Bancorp, Inc. is the parent of The Washington Trust Company, a state-chartered bank headquartered in Westerly, Rhode Island. Founded in 1800, Washington Trust is the oldest community bank in the nation and is the largest independent bank headquartered in Rhode Island. Washington Trust offers a full range of financial services, including commercial banking, small business banking, personal banking, and wealth management and trust services through its offices located in Rhode Island, Connecticut and Massachusetts. The Corporation’s common stock trades on 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: 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 Washington Trust's competition; changes in legislation or regulation and accounting principles, policies and guidelines; and changes in the assumptions used in making such forward-looking statements. In addition, the factors described under “Risk Factors” in Item 1A of our Annual Report on Form 10-K, 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.
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, 2015 | Dec 31, 2014 | ||||||
Assets: | ||||||||
Cash and due from banks | $79,795 | $76,386 | ||||||
Short-term investments | 4,298 | 3,964 | ||||||
Mortgage loans held for sale (including $17,260 at June 30, 2015 and $30,321 at December 31, 2014 measured at fair value) | 37,389 | 45,693 | ||||||
Securities: | ||||||||
Available for sale, at fair value | 351,378 | 357,662 | ||||||
Held to maturity, at amortized cost (fair value $23,091 at June 30, 2015 and $26,008 at December 31, 2014) | 22,523 | 25,222 | ||||||
Total securities | 373,901 | 382,884 | ||||||
Federal Home Loan Bank stock, at cost | 37,730 | 37,730 | ||||||
Loans: | ||||||||
Commercial | 1,583,537 | 1,535,488 | ||||||
Residential real estate | 1,001,263 | 985,415 | ||||||
Consumer | 343,784 | 338,373 | ||||||
Total loans | 2,928,584 | 2,859,276 | ||||||
Less allowance for loan losses | 27,587 | 28,023 | ||||||
Net loans | 2,900,997 | 2,831,253 | ||||||
Premises and equipment, net | 28,124 | 27,495 | ||||||
Investment in bank-owned life insurance | 64,502 | 63,519 | ||||||
Goodwill | 58,114 | 58,114 | ||||||
Identifiable intangible assets, net | 4,539 | 4,849 | ||||||
Other assets | 55,088 | 54,987 | ||||||
Total assets | $3,644,477 | $3,586,874 | ||||||
Liabilities: | ||||||||
Deposits: | ||||||||
Demand deposits | $457,755 | $459,852 | ||||||
NOW accounts | 357,922 | 326,375 | ||||||
Money market accounts | 789,334 | 802,764 | ||||||
Savings accounts | 300,108 | 291,725 | ||||||
Time deposits | 834,000 | 874,102 | ||||||
Total deposits | 2,739,119 | 2,754,818 | ||||||
Federal Home Loan Bank advances | 471,321 | 406,297 | ||||||
Junior subordinated debentures | 22,681 | 22,681 | ||||||
Other liabilities | 52,189 | 56,799 | ||||||
Total liabilities | 3,285,310 | 3,240,595 | ||||||
Shareholders’ Equity: | ||||||||
Common stock of $.0625 par value; authorized 30,000,000 shares; issued and outstanding 16,833,525 shares at June 30, 2015 and 16,746,363 shares at December 31, 2014 | 1,052 | 1,047 | ||||||
Paid-in capital | 103,408 | 101,204 | ||||||
Retained earnings | 263,790 | 252,837 | ||||||
Accumulated other comprehensive loss | (9,083 | ) | (8,809 | ) | ||||
Total shareholders’ equity | 359,167 | 346,279 | ||||||
Total liabilities and shareholders’ equity | $3,644,477 | $3,586,874 | ||||||
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, | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Interest income: | ||||||||||||||||
Interest and fees on loans | $28,739 | $26,169 | $57,092 | $51,758 | ||||||||||||
Interest on securities: | Taxable | 2,176 | 2,699 | 4,435 | 5,641 | |||||||||||
Nontaxable | 402 | 557 | 837 | 1,139 | ||||||||||||
Dividends on Federal Home Loan Bank stock | 164 | 138 | 329 | 280 | ||||||||||||
Other interest income | 29 | 28 | 54 | 63 | ||||||||||||
Total interest and dividend income | 31,510 | 29,591 | 62,747 | 58,881 | ||||||||||||
Interest expense: | ||||||||||||||||
Deposits | 3,348 | 3,120 | 6,737 | 6,089 | ||||||||||||
Federal Home Loan Bank advances | 1,891 | 1,758 | 3,793 | 3,999 | ||||||||||||
Junior subordinated debentures | 241 | 241 | 482 | 482 | ||||||||||||
Other interest expense | 2 | 4 | 5 | 7 | ||||||||||||
Total interest expense | 5,482 | 5,123 | 11,017 | 10,577 | ||||||||||||
Net interest income | 26,028 | 24,468 | 51,730 | 48,304 | ||||||||||||
Provision for loan losses | 100 | 450 | 100 | 750 | ||||||||||||
Net interest income after provision for loan losses | 25,928 | 24,018 | 51,630 | 47,554 | ||||||||||||
Noninterest income: | ||||||||||||||||
Wealth management revenues | 8,912 | 8,530 | 17,347 | 16,595 | ||||||||||||
Merchant processing fees | — | — | — | 1,291 | ||||||||||||
Net gains on loan sales and commissions on loans originated for others | 2,748 | 1,707 | 5,333 | 2,946 | ||||||||||||
Service charges on deposit accounts | 973 | 824 | 1,908 | 1,578 | ||||||||||||
Card interchange fees | 826 | 779 | 1,540 | 1,460 | ||||||||||||
Income from bank-owned life insurance | 492 | 441 | 982 | 886 | ||||||||||||
Net gains (losses) on interest rate swap contracts | 717 | (37 | ) | 1,362 | 223 | |||||||||||
Equity in earnings (losses) of unconsolidated subsidiaries | (69 | ) | (107 | ) | (155 | ) | (150 | ) | ||||||||
Gain on sale of business line | — | — | — | 6,265 | ||||||||||||
Other income | 662 | 677 | 964 | 1,090 | ||||||||||||
Total noninterest income | 15,261 | 12,814 | 29,281 | 32,184 | ||||||||||||
Noninterest expense: | ||||||||||||||||
Salaries and employee benefits | 15,506 | 14,771 | 31,000 | 29,329 | ||||||||||||
Net occupancy | 1,669 | 1,475 | 3,555 | 3,115 | ||||||||||||
Equipment | 1,376 | 1,235 | 2,716 | 2,471 | ||||||||||||
Merchant processing costs | — | — | — | 1,050 | ||||||||||||
Outsourced services | 1,277 | 1,015 | 2,524 | 2,059 | ||||||||||||
Legal, audit and professional fees | 610 | 598 | 1,286 | 1,216 | ||||||||||||
FDIC deposit insurance costs | 436 | 413 | 909 | 853 | ||||||||||||
Advertising and promotion | 578 | 540 | 845 | 772 | ||||||||||||
Amortization of intangibles | 156 | 164 | 311 | 328 | ||||||||||||
Debt prepayment penalties | — | — | — | 6,294 | ||||||||||||
Other expenses | 2,691 | 2,237 | 4,684 | 4,253 | ||||||||||||
Total noninterest expense | 24,299 | 22,448 | 47,830 | 51,740 | ||||||||||||
Income before income taxes | 16,890 | 14,384 | 33,081 | 27,998 | ||||||||||||
Income tax expense | 5,387 | 4,587 | 10,568 | 8,903 | ||||||||||||
Net income | $11,503 | $9,797 | $22,513 | $19,095 | ||||||||||||
Weighted average common shares outstanding - basic | 16,811 | 16,678 | 16,785 | 16,653 | ||||||||||||
Weighted average common shares outstanding - diluted | 16,989 | 16,831 | 16,977 | 16,817 | ||||||||||||
Per share information: | Basic earnings per common share | $0.68 | $0.59 | $1.34 | $1.14 | |||||||||||
Diluted earnings per common share | $0.68 | $0.58 | $1.32 | $1.13 | ||||||||||||
Cash dividends declared per share | $0.34 | $0.29 | $0.68 | $0.58 | ||||||||||||
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, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | ||||||||||||||
Financial Data: | |||||||||||||||||||
Total assets | $3,644,477 | $3,602,514 | $3,586,874 | $3,415,882 | $3,317,022 | ||||||||||||||
Total loans | 2,928,584 | 2,880,592 | 2,859,276 | 2,674,047 | 2,581,124 | ||||||||||||||
Total securities | 373,901 | 364,967 | 382,884 | 402,553 | 355,392 | ||||||||||||||
Total deposits | 2,739,119 | 2,783,143 | 2,754,818 | 2,738,888 | 2,586,097 | ||||||||||||||
Total shareholders' equity | 359,167 | 353,879 | 346,279 | 348,562 | 343,450 | ||||||||||||||
Net interest income | 26,028 | 25,702 | 26,263 | 24,938 | 24,468 | ||||||||||||||
Provision for loan losses | 100 | — | 500 | 600 | 450 | ||||||||||||||
Noninterest income, excluding OTTI losses | 15,261 | 14,020 | 13,706 | 13,125 | 12,814 | ||||||||||||||
Net OTTI losses recognized in earnings | — | — | — | — | — | ||||||||||||||
Noninterest expense | 24,299 | 23,531 | 23,060 | 22,047 | 22,448 | ||||||||||||||
Income tax expense | 5,387 | 5,181 | 5,218 | 4,878 | 4,587 | ||||||||||||||
Net income | 11,503 | 11,010 | 11,191 | 10,538 | 9,797 | ||||||||||||||
Share Data: | |||||||||||||||||||
Basic earnings per common share | $0.68 | $0.65 | $0.67 | $0.63 | $0.59 | ||||||||||||||
Diluted earnings per common share | $0.68 | $0.65 | $0.66 | $0.62 | $0.58 | ||||||||||||||
Dividends declared per share | $0.34 | $0.34 | $0.32 | $0.32 | $0.29 | ||||||||||||||
Book value per share | $21.34 | $21.10 | $20.68 | $20.85 | $20.56 | ||||||||||||||
Tangible book value per share - Non-GAAP (1) | $17.61 | $17.35 | $16.92 | $17.07 | $16.77 | ||||||||||||||
Market value per share | $39.48 | $38.19 | $40.18 | $32.99 | $36.77 | ||||||||||||||
Shares outstanding at end of period | 16,834 | 16,773 | 16,746 | 16,721 | 16,705 | ||||||||||||||
Weighted average common shares outstanding - basic | 16,811 | 16,759 | 16,735 | 16,714 | 16,678 | ||||||||||||||
Weighted average common shares outstanding - diluted | 16,989 | 16,939 | 16,911 | 16,855 | 16,831 | ||||||||||||||
Key Ratios: | |||||||||||||||||||
Return on average assets | 1.27 | % | 1.23 | % | 1.27 | % | 1.25 | % | 1.22 | % | |||||||||
Return on average tangible assets - Non-GAAP (1) | 1.29 | % | 1.25 | % | 1.29 | % | 1.27 | % | 1.24 | % | |||||||||
Return on average equity | 12.88 | % | 12.54 | % | 12.68 | % | 12.15 | % | 11.52 | % | |||||||||
Return on average tangible equity - Non-GAAP (1) | 15.62 | % | 15.27 | % | 15.44 | % | 14.86 | % | 14.15 | % | |||||||||
Tier 1 risk-based capital | 11.78% (i) | 11.78 | % | 11.52 | % | 12.15 | % | 12.24 | % | ||||||||||
Total risk-based capital | 12.78% (i) | 12.80 | % | 12.56 | % | 13.26 | % | 13.36 | % | ||||||||||
Tier 1 leverage ratio | 9.31% (i) | 9.21 | % | 9.14 | % | 9.35 | % | 9.62 | % | ||||||||||
Tier 1 common equity (2) | 11.00% (i) | 10.98 | % | N/A | N/A | N/A | |||||||||||||
Equity to assets | 9.86 | % | 9.82 | % | 9.65 | % | 10.20 | % | 10.35 | % | |||||||||
Tangible equity to tangible assets - Non-GAAP (1) | 8.28 | % | 8.22 | % | 8.04 | % | 8.51 | % | 8.61 | % | |||||||||
(i) - estimated | |||||||||||||||||||
Wealth Management Revenues: | |||||||||||||||||||
Trust and investment management fees | $7,238 | $7,142 | $7,059 | $6,982 | $6,828 | ||||||||||||||
Mutual fund fees | 1,032 | 1,036 | 1,068 | 1,100 | 1,086 | ||||||||||||||
Asset-based revenues | 8,270 | 8,178 | 8,127 | 8,082 | 7,914 | ||||||||||||||
Transaction-based revenues | 642 | 257 | 282 | 292 | 616 | ||||||||||||||
Total wealth management revenues | $8,912 | $8,435 | $8,409 | $8,374 | $8,530 | ||||||||||||||
Wealth Management Assets Under Administration: | |||||||||||||||||||
Balance at beginning of period | $5,159,663 | $5,069,966 | $4,983,464 | $5,010,588 | $4,806,381 | ||||||||||||||
Net investment appreciation (depreciation) & income | (13,932 | ) | 80,872 | 111,715 | (29,199 | ) | 131,269 | ||||||||||||
Net client cash flows | 65,817 | 8,825 | (25,213 | ) | 2,075 | 72,938 | |||||||||||||
Balance at end of period | $5,211,548 | $5,159,663 | $5,069,966 | $4,983,464 | $5,010,588 | ||||||||||||||
(1) | See the section labeled “Supplemental Information - Non-GAAP Financial Measures” at the end of this document. |
(2) | New capital ratio effective January 1, 2015 under the Basel III capital requirements. |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||
SELECTED FINANCIAL HIGHLIGHTS (unaudited) | |||||||
Six Months Ended | |||||||
(Dollars in thousands) | Jun 30, 2015 | Jun 30, 2014 | |||||
Key Ratios: | |||||||
Return on average assets | 1.25 | % | 1.20 | % | |||
Return on average tangible assets - Non-GAAP (1) | 1.27 | % | 1.22 | % | |||
Return on average equity | 12.71 | % | 11.31 | % | |||
Return on average tangible equity - Non-GAAP (1) | 15.45 | % | 13.93 | % | |||
Allowance for Loan Losses: | |||||||
Balance at beginning of period | $28,023 | $27,886 | |||||
Provision charged to earnings | 100 | 750 | |||||
Charge-offs | (676 | ) | (1,490 | ) | |||
Recoveries | 140 | 123 | |||||
Balance at end of period | $27,587 | $27,269 | |||||
Net Loan Charge-Offs (Recoveries): | |||||||
Commercial mortgages | $316 | $965 | |||||
Commercial & industrial | 19 | 265 | |||||
Residential real estate mortgages | 50 | 37 | |||||
Consumer | 151 | 100 | |||||
Total | $536 | $1,367 | |||||
Net charge-offs to average loans (annualized) | 0.04 | % | 0.11 | % | |||
Wealth Management Revenues: | |||||||
Trust and investment management fees | $14,380 | $13,513 | |||||
Mutual fund fees | 2,068 | 2,167 | |||||
Asset-based revenues | 16,448 | 15,680 | |||||
Transaction-based revenues | 899 | 915 | |||||
Total wealth management revenues | $17,347 | $16,595 | |||||
Wealth Management Assets Under Administration: | |||||||
Balance at beginning of period | $5,069,966 | $4,781,958 | |||||
Net investment appreciation & income | 66,940 | 175,604 | |||||
Net client cash flows | 74,642 | 53,026 | |||||
Balance at end of period | $5,211,548 | $5,010,588 | |||||
Washington Trust Bancorp, Inc. and Subsidiaries | ||||||||||||||
SELECTED FINANCIAL HIGHLIGHTS (unaudited) | ||||||||||||||
For the Quarters Ended | ||||||||||||||
Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | ||||||||||
Average Yield / Rate (taxable equivalent basis): | ||||||||||||||
Assets: | ||||||||||||||
Commercial loans | 4.06 | % | 4.02 | % | 4.23 | % | 4.20 | % | 4.35 | % | ||||
Residential real estate loans, including mortgage loans held for sale | 3.95 | % | 4.06 | % | 4.06 | % | 4.06 | % | 4.12 | % | ||||
Consumer loans | 3.77 | % | 3.82 | % | 3.79 | % | 3.83 | % | 3.81 | % | ||||
Total loans | 3.99 | % | 4.01 | % | 4.12 | % | 4.10 | % | 4.20 | % | ||||
Cash, federal funds sold and other short-term investments | 0.18 | % | 0.20 | % | 0.18 | % | 0.19 | % | 0.19 | % | ||||
FHLBB stock | 1.74 | % | 1.77 | % | 1.48 | % | 1.47 | % | 1.47 | % | ||||
Taxable debt securities | 2.72 | % | 2.84 | % | 2.83 | % | 2.94 | % | 3.36 | % | ||||
Nontaxable debt securities | 6.15 | % | 6.03 | % | 5.87 | % | 5.86 | % | 5.92 | % | ||||
Total securities | 3.11 | % | 3.23 | % | 3.22 | % | 3.36 | % | 3.74 | % | ||||
Total interest-earning assets | 3.80 | % | 3.84 | % | 3.91 | % | 3.89 | % | 4.03 | % | ||||
Liabilities: | ||||||||||||||
Interest-bearing demand deposits | 0.03 | % | 0.09 | % | — | % | — | % | — | % | ||||
NOW accounts | 0.06 | % | 0.06 | % | 0.06 | % | 0.06 | % | 0.06 | % | ||||
Money market accounts | 0.46 | % | 0.45 | % | 0.43 | % | 0.41 | % | 0.38 | % | ||||
Savings accounts | 0.07 | % | 0.06 | % | 0.06 | % | 0.06 | % | 0.06 | % | ||||
Time deposits (in-market) | 1.00 | % | 1.05 | % | 1.14 | % | 1.17 | % | 1.16 | % | ||||
Wholesale brokered time deposits | 1.28 | % | 1.29 | % | 1.23 | % | 1.09 | % | 1.05 | % | ||||
FHLBB advances | 1.94 | % | 1.91 | % | 2.28 | % | 2.57 | % | 3.20 | % | ||||
Junior subordinated debentures | 4.26 | % | 4.31 | % | 4.22 | % | 4.22 | % | 4.26 | % | ||||
Other | 6.92 | % | 9.51 | % | 8.50 | % | 7.88 | % | 9.90 | % | ||||
Total interest-bearing liabilities | 0.79 | % | 0.82 | % | 0.84 | % | 0.84 | % | 0.85 | % | ||||
Interest rate spread (taxable equivalent basis) | 3.01 | % | 3.02 | % | 3.07 | % | 3.05 | % | 3.18 | % | ||||
Net interest margin (taxable equivalent basis) | 3.15 | % | 3.18 | % | 3.23 | % | 3.21 | % | 3.35 | % | ||||
At June 30, 2015 | ||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||
(Dollars in thousands) | Cost | Gains | Losses | Value | ||||||||||||
Securities Available for Sale: | ||||||||||||||||
Obligations of U.S. government-sponsored enterprises | $61,430 | $49 | ($225 | ) | $61,254 | |||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | 208,539 | 8,091 | (10 | ) | 216,620 | |||||||||||
Obligations of states and political subdivisions | 39,487 | 1,187 | — | 40,674 | ||||||||||||
Individual name issuer trust preferred debt securities | 30,772 | 16 | (4,064 | ) | 26,724 | |||||||||||
Corporate bonds | 6,118 | 12 | (24 | ) | 6,106 | |||||||||||
Total securities available for sale | 346,346 | 9,355 | (4,323 | ) | 351,378 | |||||||||||
Held to Maturity: | ||||||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | 22,523 | 568 | — | 23,091 | ||||||||||||
Total securities held to maturity | 22,523 | 568 | — | 23,091 | ||||||||||||
Total securities | $368,869 | $9,923 | ($4,323 | ) | $374,469 | |||||||||||
Washington Trust Bancorp, Inc. and Subsidiaries | ||||||||||||||||||||
SELECTED FINANCIAL HIGHLIGHTS (unaudited) | ||||||||||||||||||||
Period End Balances At | ||||||||||||||||||||
(Dollars in thousands) | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | |||||||||||||||
Loans: | ||||||||||||||||||||
Commercial: | Mortgages | $876,589 | $865,042 | $843,978 | $766,703 | $772,772 | ||||||||||||||
Construction & development | 110,989 | 89,851 | 79,592 | 58,750 | 38,574 | |||||||||||||||
Commercial & industrial | 595,959 | 604,630 | 611,918 | 564,920 | 554,824 | |||||||||||||||
Total commercial | 1,583,537 | 1,559,523 | 1,535,488 | 1,390,373 | 1,366,170 | |||||||||||||||
Residential real estate: | Mortgages | 971,705 | 954,905 | 948,731 | 912,956 | 846,187 | ||||||||||||||
Homeowner construction | 29,558 | 32,659 | 36,684 | 32,624 | 30,452 | |||||||||||||||
Total residential real estate | 1,001,263 | 987,564 | 985,415 | 945,580 | 876,639 | |||||||||||||||
Consumer: | Home equity lines | 249,845 | 239,537 | 242,480 | 240,567 | 237,390 | ||||||||||||||
Home equity loans | 47,437 | 46,727 | 46,967 | 46,455 | 45,632 | |||||||||||||||
Other | 46,502 | 47,241 | 48,926 | 51,072 | 55,293 | |||||||||||||||
Total consumer | 343,784 | 333,505 | 338,373 | 338,094 | 338,315 | |||||||||||||||
Total loans | $2,928,584 | $2,880,592 | $2,859,276 | $2,674,047 | $2,581,124 | |||||||||||||||
At June 30, 2015 | ||||||
(Dollars in thousands) | Balance | % of Total | ||||
Commercial Real Estate Loans by Property Location: | ||||||
Rhode Island, Connecticut, Massachusetts | $915,622 | 92.7 | % | |||
New York, New Jersey, Pennsylvania | 58,379 | 5.9 | % | |||
New Hampshire | 13,577 | 1.4 | % | |||
Total commercial real estate loans (1) | $987,578 | 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, 2015 | ||||||
(Dollars in thousands) | Balance | % of Total | ||||
Residential Mortgages by Property Location: | ||||||
Rhode Island, Connecticut, Massachusetts | $980,646 | 98.0 | % | |||
New Hampshire | 11,487 | 1.1 | % | |||
New York, Virginia, New Jersey, Maryland, Pennsylvania | 4,620 | 0.5 | % | |||
Ohio | 1,686 | 0.2 | % | |||
Washington, Oregon | 1,318 | 0.1 | % | |||
Georgia | 1,052 | 0.1 | % | |||
Other | 454 | — | % | |||
Total residential mortgages | $1,001,263 | 100.0 | % | |||
Period End Balances At | ||||||||||||||||||||
(Dollars in thousands) | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | |||||||||||||||
Deposits: | ||||||||||||||||||||
Demand deposits | $457,755 | $477,046 | $459,852 | $476,808 | $411,586 | |||||||||||||||
NOW accounts | 357,922 | 333,321 | 326,375 | 313,391 | 314,060 | |||||||||||||||
Money market accounts | 789,334 | 821,353 | 802,764 | 833,318 | 772,084 | |||||||||||||||
Savings accounts | 300,108 | 298,802 | 291,725 | 290,561 | 292,112 | |||||||||||||||
Time deposits | 834,000 | 852,621 | 874,102 | 824,810 | 796,255 | |||||||||||||||
Total deposits | $2,739,119 | $2,783,143 | $2,754,818 | $2,738,888 | $2,586,097 | |||||||||||||||
Out-of-market brokered certificates of deposits included in time deposits | $284,590 | $290,863 | $299,129 | $211,222 | $171,216 | |||||||||||||||
In-market deposits, excluding out-of-market brokered certificates of deposit | $2,454,529 | $2,492,280 | $2,455,689 | $2,527,666 | $2,414,881 | |||||||||||||||
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||||
SELECTED FINANCIAL HIGHLIGHTS (unaudited) | |||||||||||||||||||
Period End Balances At | |||||||||||||||||||
(Dollars in thousands) | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | ||||||||||||||
Asset Quality Ratios: | |||||||||||||||||||
Total past due loans to total loans | 0.82 | % | 0.66 | % | 0.63 | % | 0.75 | % | 0.82 | % | |||||||||
Nonperforming assets to total assets | 0.45 | % | 0.48 | % | 0.48 | % | 0.53 | % | 0.42 | % | |||||||||
Nonaccrual loans to total loans | 0.52 | % | 0.55 | % | 0.56 | % | 0.63 | % | 0.49 | % | |||||||||
Allowance for loan losses to nonaccrual loans | 182.32 | % | 175.29 | % | 175.75 | % | 163.68 | % | 217.54 | % | |||||||||
Allowance for loan losses to total loans | 0.94 | % | 0.97 | % | 0.98 | % | 1.04 | % | 1.06 | % | |||||||||
Nonperforming Assets: | |||||||||||||||||||
Commercial mortgages | $4,915 | $5,115 | $5,315 | $6,022 | $2,290 | ||||||||||||||
Commercial construction & development | — | — | — | — | — | ||||||||||||||
Commercial & industrial | 1,039 | 2,193 | 1,969 | 1,326 | 1,615 | ||||||||||||||
Residential real estate mortgages | 7,411 | 6,956 | 7,124 | 7,890 | 7,417 | ||||||||||||||
Consumer | 1,766 | 1,601 | 1,537 | 1,727 | 1,213 | ||||||||||||||
Total nonaccrual loans | 15,131 | 15,865 | 15,945 | 16,965 | 12,535 | ||||||||||||||
Nonaccrual investment securities | — | — | — | — | — | ||||||||||||||
Property acquired through foreclosure or repossession | 1,388 | 1,398 | 1,176 | 988 | 1,309 | ||||||||||||||
Total nonperforming assets | $16,519 | $17,263 | $17,121 | $17,953 | $13,844 | ||||||||||||||
Troubled Debt Restructured Loans: | |||||||||||||||||||
Accruing troubled debt restructured loans: | |||||||||||||||||||
Commercial mortgages | $9,448 | $9,448 | $9,676 | $9,677 | $22,603 | ||||||||||||||
Commercial & industrial | 2,209 | 881 | 954 | 1,036 | 969 | ||||||||||||||
Residential real estate mortgages | 679 | 684 | 1,252 | 1,258 | 1,459 | ||||||||||||||
Consumer | 201 | 134 | 135 | 164 | 167 | ||||||||||||||
Accruing troubled debt restructured loans | 12,537 | 11,147 | 12,017 | 12,135 | 25,198 | ||||||||||||||
Nonaccrual troubled debt restructured loans: | |||||||||||||||||||
Commercial mortgages | 4,498 | 4,698 | 4,898 | 4,898 | — | ||||||||||||||
Commercial & industrial | 381 | 1,442 | 1,193 | 854 | 872 | ||||||||||||||
Residential real estate mortgages | 92 | 338 | 248 | 441 | 448 | ||||||||||||||
Consumer | 33 | 34 | — | — | — | ||||||||||||||
Nonaccrual troubled debt restructured loans | 5,004 | 6,512 | 6,339 | 6,193 | 1,320 | ||||||||||||||
Total troubled debt restructured loans | $17,541 | $17,659 | $18,356 | $18,328 | $26,518 | ||||||||||||||
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||||
SELECTED FINANCIAL HIGHLIGHTS (unaudited) | |||||||||||||||||||
Period End Balances At | |||||||||||||||||||
(Dollars in thousands) | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | ||||||||||||||
Past Due Loans: | |||||||||||||||||||
Loans 30-59 Days Past Due: | |||||||||||||||||||
Commercial mortgages | $14 | $497 | $— | $— | $311 | ||||||||||||||
Commercial & industrial | 2,581 | 229 | 2,136 | 1,129 | 1,785 | ||||||||||||||
Residential real estate mortgages | 5,120 | 4,470 | 2,943 | 2,582 | 5,249 | ||||||||||||||
Consumer loans | 1,634 | 1,512 | 954 | 1,677 | 1,889 | ||||||||||||||
Loans 30-59 days past due | $9,349 | $6,708 | $6,033 | $5,388 | $9,234 | ||||||||||||||
Loans 60-89 Days Past Due: | |||||||||||||||||||
Commercial mortgages | $— | $61 | $— | $— | $1,583 | ||||||||||||||
Commercial & industrial | 2,299 | 229 | 1,202 | 314 | 773 | ||||||||||||||
Residential real estate mortgages | 913 | 1,352 | 821 | 2,001 | 855 | ||||||||||||||
Consumer loans | 397 | 565 | 345 | 356 | 1,102 | ||||||||||||||
Loans 60-89 days past due | $3,609 | $2,207 | $2,368 | $2,671 | $4,313 | ||||||||||||||
Loans 90 Days or More Past Due: | |||||||||||||||||||
Commercial mortgages | $4,915 | $5,115 | $5,315 | $5,995 | $2,250 | ||||||||||||||
Commercial & industrial | 638 | 721 | 181 | 970 | 417 | ||||||||||||||
Residential real estate mortgages | 4,871 | 3,607 | 3,284 | 3,922 | 4,335 | ||||||||||||||
Consumer loans | 647 | 723 | 897 | 989 | 512 | ||||||||||||||
Loans 90 days or more past due | $11,071 | $10,166 | $9,677 | $11,876 | $7,514 | ||||||||||||||
Total Past Due Loans: | |||||||||||||||||||
Commercial mortgages | $4,929 | $5,673 | $5,315 | $5,995 | $4,144 | ||||||||||||||
Commercial & industrial | 5,518 | 1,179 | 3,519 | 2,413 | 2,975 | ||||||||||||||
Residential real estate mortgages | 10,904 | 9,429 | 7,048 | 8,505 | 10,439 | ||||||||||||||
Consumer loans | 2,678 | 2,800 | 2,196 | 3,022 | 3,503 | ||||||||||||||
Total past due loans | $24,029 | $19,081 | $18,078 | $19,935 | $21,061 | ||||||||||||||
Accruing loans 90 days or more past due | $— | $— | $— | $— | $— | ||||||||||||||
Nonaccrual loans included in past due loans | $12,397 | $12,314 | $12,721 | $14,364 | $10,432 | ||||||||||||||
For the Quarters Ended | |||||||||||||||||||
(Dollars in thousands) | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | ||||||||||||||
Allowance for Loan Losses: | |||||||||||||||||||
Balance at beginning of period | $27,810 | $28,023 | $27,768 | $27,269 | $27,043 | ||||||||||||||
Provision charged to earnings | 100 | — | 500 | 600 | 450 | ||||||||||||||
Charge-offs | (355 | ) | (321 | ) | (311 | ) | (148 | ) | (267 | ) | |||||||||
Recoveries | 32 | 108 | 66 | 47 | 43 | ||||||||||||||
Balance at end of period | $27,587 | $27,810 | $28,023 | $27,768 | $27,269 | ||||||||||||||
Net Loan Charge-Offs (Recoveries): | |||||||||||||||||||
Commercial mortgages | $196 | $120 | ($5 | ) | ($7 | ) | $26 | ||||||||||||
Commercial & industrial | 26 | (7 | ) | 144 | 63 | 95 | |||||||||||||
Residential real estate mortgages | 4 | 46 | 45 | (1 | ) | 30 | |||||||||||||
Consumer | 97 | 54 | 61 | 46 | 73 | ||||||||||||||
Total | $323 | $213 | $245 | $101 | $224 | ||||||||||||||
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, 2015 | March 31, 2015 | June 30, 2014 | |||||||||||||||||||||||||
Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||
Commercial loans | $1,574,183 | $15,930 | 4.06 | % | $1,544,720 | $15,313 | 4.02 | % | $1,339,310 | $14,509 | 4.35 | % | |||||||||||||||
Residential real estate loans, including loans held for sale | 1,025,029 | 10,102 | 3.95 | % | 1,030,016 | 10,314 | 4.06 | % | 856,955 | 8,811 | 4.12 | % | |||||||||||||||
Consumer loans | 338,809 | 3,183 | 3.77 | % | 336,333 | 3,168 | 3.82 | % | 333,881 | 3,171 | 3.81 | % | |||||||||||||||
Total loans | 2,938,021 | 29,215 | 3.99 | % | 2,911,069 | 28,795 | 4.01 | % | 2,530,146 | 26,491 | 4.20 | % | |||||||||||||||
Cash, federal funds sold and short-term investments | 63,858 | 29 | 0.18 | % | 51,058 | 25 | 0.20 | % | 59,507 | 28 | 0.19 | % | |||||||||||||||
FHLBB stock | 37,730 | 164 | 1.74 | % | 37,730 | 165 | 1.77 | % | 37,730 | 138 | 1.47 | % | |||||||||||||||
Taxable debt securities | 320,643 | 2,176 | 2.72 | % | 322,570 | 2,259 | 2.84 | % | 322,418 | 2,699 | 3.36 | % | |||||||||||||||
Nontaxable debt securities | 40,886 | 627 | 6.15 | % | 44,659 | 664 | 6.03 | % | 57,422 | 847 | 5.92 | % | |||||||||||||||
Total securities | 361,529 | 2,803 | 3.11 | % | 367,229 | 2,923 | 3.23 | % | 379,840 | 3,546 | 3.74 | % | |||||||||||||||
Total interest-earning assets | 3,401,138 | 32,211 | 3.80 | % | 3,367,086 | 31,908 | 3.84 | % | 3,007,223 | 30,203 | 4.03 | % | |||||||||||||||
Noninterest-earning assets | 221,577 | 221,795 | 207,426 | ||||||||||||||||||||||||
Total assets | $3,622,715 | $3,588,881 | $3,214,649 | ||||||||||||||||||||||||
Liabilities and Shareholders' Equity: | |||||||||||||||||||||||||||
Interest-bearing demand deposits | $38,129 | $3 | 0.03 | % | $37,851 | $8 | 0.09 | % | $9,067 | $— | — | % | |||||||||||||||
NOW accounts | 363,434 | 53 | 0.06 | % | 329,588 | 48 | 0.06 | % | 311,948 | 47 | 0.06 | % | |||||||||||||||
Money market accounts | 820,887 | 941 | 0.46 | % | 800,036 | 883 | 0.45 | % | 759,704 | 713 | 0.38 | % | |||||||||||||||
Savings accounts | 298,286 | 50 | 0.07 | % | 293,926 | 46 | 0.06 | % | 291,671 | 45 | 0.06 | % | |||||||||||||||
Time deposits (in-market) | 554,839 | 1,390 | 1.00 | % | 567,063 | 1,469 | 1.05 | % | 649,018 | 1,882 | 1.16 | % | |||||||||||||||
Wholesale brokered time deposits | 285,844 | 911 | 1.28 | % | 294,664 | 935 | 1.29 | % | 164,540 | 433 | 1.06 | % | |||||||||||||||
FHLBB advances | 391,152 | 1,891 | 1.94 | % | 404,773 | 1,902 | 1.91 | % | 220,088 | 1,758 | 3.20 | % | |||||||||||||||
Junior subordinated debentures | 22,681 | 241 | 4.26 | % | 22,681 | 241 | 4.31 | % | 22,681 | 241 | 4.26 | % | |||||||||||||||
Other | 116 | 2 | 6.92 | % | 128 | 3 | 9.51 | % | 162 | 4 | 9.90 | % | |||||||||||||||
Total interest-bearing liabilities | 2,775,368 | 5,482 | 0.79 | % | 2,750,710 | 5,535 | 0.82 | % | 2,428,879 | 5,123 | 0.85 | % | |||||||||||||||
Demand deposits | 441,355 | 438,904 | 409,851 | ||||||||||||||||||||||||
Other liabilities | 48,627 | 48,052 | 35,684 | ||||||||||||||||||||||||
Shareholders' equity | 357,365 | 351,215 | 340,235 | ||||||||||||||||||||||||
Total liabilities and shareholders' equity | $3,622,715 | $3,588,881 | $3,214,649 | ||||||||||||||||||||||||
Net interest income (FTE) | $26,729 | $26,373 | $25,080 | ||||||||||||||||||||||||
Interest rate spread | 3.01 | % | 3.02 | % | 3.18 | % | |||||||||||||||||||||
Net interest margin | 3.15 | % | 3.18 | % | 3.35 | % | |||||||||||||||||||||
Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:
(Dollars in thousands) | Three Months Ended | ||||||||||
Jun 30, 2015 | Mar 31, 2015 | Jun 30, 2014 | |||||||||
Commercial loans | $476 | $442 | $322 | ||||||||
Nontaxable debt securities | 225 | 229 | 290 | ||||||||
Total | $701 | $671 | $612 | ||||||||
Washington Trust Bancorp, Inc. and Subsidiaries | ||||||||||||||||||
CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited) | ||||||||||||||||||
Six Months Ended | ||||||||||||||||||
June 30, 2015 | June 30, 2014 | |||||||||||||||||
Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | |||||||||||||
(Dollars in thousands) | ||||||||||||||||||
Assets: | ||||||||||||||||||
Commercial loans | $1,559,533 | $31,242 | 4.04 | % | $1,338,061 | $29,109 | 4.39 | % | ||||||||||
Residential real estate loans, including loans held for sale | 1,027,509 | 20,416 | 4.01 | % | 829,834 | 17,019 | 4.14 | % | ||||||||||
Consumer loans | 337,578 | 6,351 | 3.79 | % | 330,854 | 6,268 | 3.82 | % | ||||||||||
Total loans | 2,924,620 | 58,009 | 4.00 | % | 2,498,749 | 52,396 | 4.23 | % | ||||||||||
Cash, federal funds sold and short-term investments | 57,492 | 54 | 0.19 | % | 60,869 | 63 | 0.21 | % | ||||||||||
FHLBB stock | 37,730 | 329 | 1.76 | % | 37,730 | 280 | 1.50 | % | ||||||||||
Taxable debt securities | 321,602 | 4,435 | 2.78 | % | 333,154 | 5,641 | 3.41 | % | ||||||||||
Nontaxable debt securities | 42,762 | 1,291 | 6.09 | % | 58,683 | 1,731 | 5.95 | % | ||||||||||
Total securities | 364,364 | 5,726 | 3.17 | % | 391,837 | 7,372 | 3.79 | % | ||||||||||
Total interest-earning assets | 3,384,206 | 64,118 | 3.82 | % | 2,989,185 | 60,111 | 4.06 | % | ||||||||||
Noninterest-earning assets | 221,686 | 205,391 | ||||||||||||||||
Total assets | $3,605,892 | $3,194,576 | ||||||||||||||||
Liabilities and Shareholders' Equity: | ||||||||||||||||||
Interest-bearing demand deposits | $37,991 | $11 | 0.06 | % | $9,912 | $— | — | % | ||||||||||
NOW accounts | 346,605 | 100 | 0.06 | % | 308,096 | 94 | 0.06 | % | ||||||||||
Money market accounts | 810,519 | 1,825 | 0.45 | % | 722,629 | 1,322 | 0.37 | % | ||||||||||
Savings accounts | 296,117 | 96 | 0.07 | % | 292,237 | 90 | 0.06 | % | ||||||||||
Time deposits (in-market) | 560,917 | 2,859 | 1.03 | % | 662,354 | 3,813 | 1.16 | % | ||||||||||
Wholesale brokered time deposits | 290,230 | 1,846 | 1.28 | % | 143,199 | 770 | 1.08 | % | ||||||||||
FHLBB advances | 397,925 | 3,793 | 1.92 | % | 244,900 | 3,999 | 3.29 | % | ||||||||||
Junior subordinated debentures | 22,681 | 482 | 4.29 | % | 22,681 | 482 | 4.29 | % | ||||||||||
Other | 122 | 5 | 8.26 | % | 168 | 7 | 8.40 | % | ||||||||||
Total interest-bearing liabilities | 2,763,107 | 11,017 | 0.80 | % | 2,406,176 | 10,577 | 0.89 | % | ||||||||||
Demand deposits | 440,136 | 416,377 | ||||||||||||||||
Other liabilities | 48,342 | 34,377 | ||||||||||||||||
Shareholders' equity | 354,307 | 337,646 | ||||||||||||||||
Total liabilities and shareholders' equity | $3,605,892 | $3,194,576 | ||||||||||||||||
Net interest income (FTE) | $53,101 | $49,534 | ||||||||||||||||
Interest rate spread | 3.02 | % | 3.17 | % | ||||||||||||||
Net interest margin | 3.16 | % | 3.34 | % | ||||||||||||||
(Dollars in thousands) | Six Months Ended | ||||||
Jun 30, 2015 | Jun 30, 2014 | ||||||
Commercial loans | $917 | $638 | |||||
Nontaxable debt securities | 454 | 592 | |||||
Total | $1,371 | $1,230 | |||||
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, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | ||||||||||||||
Calculation of Tangible Book Value per Share: | |||||||||||||||||||
Total shareholders' equity at end of period | $359,167 | $353,879 | $346,279 | $348,562 | $343,450 | ||||||||||||||
Less: | |||||||||||||||||||
Goodwill | 58,114 | 58,114 | 58,114 | 58,114 | 58,114 | ||||||||||||||
Identifiable intangible assets, net | 4,539 | 4,694 | 4,849 | 5,004 | 5,165 | ||||||||||||||
Total tangible shareholders' equity at end of period | $296,514 | $291,071 | $283,316 | $285,444 | $280,171 | ||||||||||||||
Shares outstanding at end of period | 16,834 | 16,773 | 16,746 | 16,721 | 16,705 | ||||||||||||||
Book value per share - GAAP | $21.34 | $21.10 | $20.68 | $20.85 | $20.56 | ||||||||||||||
Tangible book value per share - Non-GAAP | $17.61 | $17.35 | $16.92 | $17.07 | $16.77 | ||||||||||||||
Calculation of Tangible Equity to Tangible Assets: | |||||||||||||||||||
Total tangible shareholders' equity at end of period | $296,514 | $291,071 | $283,316 | $285,444 | $280,171 | ||||||||||||||
Total assets at end of period | $3,644,477 | $3,602,514 | $3,586,874 | $3,415,882 | $3,317,022 | ||||||||||||||
Less: | |||||||||||||||||||
Goodwill | 58,114 | 58,114 | 58,114 | 58,114 | 58,114 | ||||||||||||||
Identifiable intangible assets, net | 4,539 | 4,694 | 4,849 | 5,004 | 5,165 | ||||||||||||||
Total tangible assets at end of period | $3,581,824 | $3,539,706 | $3,523,911 | $3,352,764 | $3,253,743 | ||||||||||||||
Equity to assets - GAAP | 9.86 | % | 9.82 | % | 9.65 | % | 10.20 | % | 10.35 | % | |||||||||
Tangible equity to tangible assets - Non-GAAP | 8.28 | % | 8.22 | % | 8.04 | % | 8.51 | % | 8.61 | % | |||||||||
Calculation of Return on Average Tangible Assets: | |||||||||||||||||||
Net income | $11,503 | $11,010 | $11,191 | $10,538 | $9,797 | ||||||||||||||
Total average assets | $3,622,715 | $3,588,881 | $3,521,503 | $3,370,323 | $3,214,649 | ||||||||||||||
Less: | |||||||||||||||||||
Average goodwill | 58,114 | 58,114 | 58,114 | 58,114 | 58,114 | ||||||||||||||
Average identifiable intangible assets, net | 4,614 | 4,770 | 4,924 | 5,082 | 5,245 | ||||||||||||||
Total average tangible assets | $3,559,987 | $3,525,997 | $3,458,465 | $3,307,127 | $3,151,290 | ||||||||||||||
Return on average assets - GAAP | 1.27 | % | 1.23 | % | 1.27 | % | 1.25 | % | 1.22 | % | |||||||||
Return on average tangible assets - Non-GAAP | 1.29 | % | 1.25 | % | 1.29 | % | 1.27 | % | 1.24 | % | |||||||||
Calculation of Return on Average Tangible Equity: | |||||||||||||||||||
Net income | $11,503 | $11,010 | $11,191 | $10,538 | $9,797 | ||||||||||||||
Total average shareholders' equity | $357,365 | $351,215 | $352,916 | $346,837 | $340,235 | ||||||||||||||
Less: | |||||||||||||||||||
Average goodwill | 58,114 | 58,114 | 58,114 | 58,114 | 58,114 | ||||||||||||||
Average identifiable intangible assets, net | 4,614 | 4,770 | 4,924 | 5,082 | 5,245 | ||||||||||||||
Total average tangible shareholders' equity | $294,637 | $288,331 | $289,878 | $283,641 | $276,876 | ||||||||||||||
Return on average shareholders' equity - GAAP | 12.88 | % | 12.54 | % | 12.68 | % | 12.15 | % | 11.52 | % | |||||||||
Return on average tangible shareholders' equity - Non-GAAP | 15.62 | % | 15.27 | % | 15.44 | % | 14.86 | % | 14.15 | % | |||||||||
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||
SUPPLEMENTAL INFORMATION - Non-GAAP Financial Measures (unaudited) | |||||||
Six Months Ended | |||||||
(Dollars in thousands) | Jun 30, 2015 | Jun 30, 2014 | |||||
Calculation of Return on Average Tangible Assets: | |||||||
Net income | $22,513 | $19,095 | |||||
Total average assets | $3,605,892 | $3,194,576 | |||||
Less: | |||||||
Average goodwill | 58,114 | 58,114 | |||||
Average identifiable intangible assets, net | 4,691 | 5,327 | |||||
Total average tangible assets | $3,543,087 | $3,131,135 | |||||
Return on average assets - GAAP | 1.25 | % | 1.20 | % | |||
Return on average tangible assets - Non-GAAP | 1.27 | % | 1.22 | % | |||
Calculation of Return on Average Tangible Equity: | |||||||
Net income | $22,513 | $19,095 | |||||
Total average shareholders' equity | $354,307 | $337,646 | |||||
Less: | |||||||
Average goodwill | 58,114 | 58,114 | |||||
Average identifiable intangible assets, net | 4,691 | 5,327 | |||||
Total average tangible shareholders' equity | $291,502 | $274,205 | |||||
Return on average shareholders' equity - GAAP | 12.71 | % | 11.31 | % | |||
Return on average tangible shareholders' equity - Non-GAAP | 15.45 | % | 13.93 | % | |||