Rhode Island | 001-32991 | 05-0404671 | ||
-------------------- | -------------------- | --------------------- | ||
(State or Other Jurisdiction | (Commission | (IRS Employer | ||
of Incorporation) | File Number) | Identification No.) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
(d) | Exhibits. | |||
Exhibit No. | Exhibit | |||
99.1 | Press release dated July 25, 2016* | |||
*Filed herewith |
WASHINGTON TRUST BANCORP, INC. | ||||
Date: | July 25, 2016 | By: | /s/ David V. Devault | |
David V. Devault | ||||
Vice Chair, Secretary and Chief Financial Officer |
• | Returns on average equity and average assets remain solid at 11.50% and 1.14%, respectively. Comparable amounts for the first quarter of 2016 were 11.50% and 1.16%, respectively. |
• | Mortgage banking revenues amounted to $2.7 million, up by 23% on a linked quarter basis. Mortgage loans sold to the secondary market totaled $139 million; the second highest quarterly volume in the past three years. |
• | Total loans stood at $3.1 billion at June 30, 2016, up by 1% in the quarter and up by 5% from a year ago. |
• | Total deposits amounted to $2.8 billion at March 31, 2016, down by 3% in the quarter and up by 2% from a year ago. |
• | Average interest-earning assets increased by $94 million, due to growth in average balances of commercial loans in the quarter as well as an increase in average investment securities driven by portfolio additions near the end of the previous quarter. |
• | Average interest-bearing liabilities rose by $88 million, reflecting increases in the average balance of Federal Home Loan Bank of Boston ("FHLBB") advances. The cost of interest-bearing funds was 0.74%, unchanged from the previous quarter. |
• | Wealth management revenues totaled $9.5 million for the second quarter, up by $307 thousand, or 3%, from the prior quarter. The increase included a $291 thousand increase in tax preparation fees, which are generally concentrated in the second quarter. Wealth management assets under administration amounted to $5.9 billion at June 30, 2016, up by $26 million on a linked quarter basis. Managed assets continue to represent over 90% of total wealth management assets at June 30, 2016. |
• | Mortgage banking benefited from strong activity levels as revenues totaled $2.7 million for the second quarter, up by $512 thousand, or 23%, on a linked quarter basis. These results reflect both a higher volume and yield on loans sold to the secondary market. Residential mortgage loans sold to the secondary market amounted to $139.0 million in the second quarter, compared to $106.0 million in the previous quarter. |
• | Income from bank-owned life insurance ("BOLI") amounted to $1.1 million in the the second quarter, up by $591 thousand, from the the first quarter of 2016. Included in the second quarter was a $589 thousand non-taxable gain due to the receipt of life insurance proceeds. |
• | Loan related derivative income amounted to $508 thousand in the second quarter, down by $137 thousand, or 21%, from the prior quarter. The decrease reflected a lower volume of commercial borrower interest rate swaps transactions. |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||||||||
(Unaudited; Dollars in thousands) | |||||||||||||||
Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | |||||||||||
Assets: | |||||||||||||||
Cash and due from banks | $116,658 | $89,966 | $93,222 | $106,445 | $79,795 | ||||||||||
Short-term investments | 3,255 | 4,931 | 4,409 | 3,629 | 4,298 | ||||||||||
Mortgage loans held for sale | 38,554 | 22,895 | 38,554 | 31,805 | 37,389 | ||||||||||
Securities: | |||||||||||||||
Available for sale, at fair value | 401,749 | 411,352 | 375,044 | 323,795 | 351,378 | ||||||||||
Held to maturity, at amortized cost | 17,917 | 19,040 | 20,023 | 21,140 | 22,523 | ||||||||||
Total securities | 419,666 | 430,392 | 395,067 | 344,935 | 373,901 | ||||||||||
Federal Home Loan Bank stock, at cost | 34,303 | 26,515 | 24,316 | 37,730 | 37,730 | ||||||||||
Loans: | |||||||||||||||
Commercial | 1,732,220 | 1,698,811 | 1,654,547 | 1,579,854 | 1,583,537 | ||||||||||
Residential real estate | 1,005,036 | 1,004,349 | 1,013,555 | 1,024,214 | 1,001,263 | ||||||||||
Consumer | 343,628 | 343,833 | 345,025 | 345,850 | 343,784 | ||||||||||
Total loans | 3,080,884 | 3,046,993 | 3,013,127 | 2,949,918 | 2,928,584 | ||||||||||
Less allowance for loan losses | 25,826 | 26,137 | 27,069 | 27,161 | 27,587 | ||||||||||
Net loans | 3,055,058 | 3,020,856 | 2,986,058 | 2,922,757 | 2,900,997 | ||||||||||
Premises and equipment, net | 29,590 | 29,882 | 29,593 | 28,180 | 28,124 | ||||||||||
Investment in bank-owned life insurance | 65,036 | 66,000 | 65,501 | 65,000 | 64,502 | ||||||||||
Goodwill | 64,059 | 64,059 | 64,059 | 64,196 | 58,114 | ||||||||||
Identifiable intangible assets, net | 10,814 | 11,137 | 11,460 | 11,793 | 4,539 | ||||||||||
Other assets | 80,088 | 71,577 | 59,365 | 58,366 | 55,088 | ||||||||||
Total assets | $3,917,081 | $3,838,210 | $3,771,604 | $3,674,836 | $3,644,477 | ||||||||||
Liabilities: | |||||||||||||||
Deposits: | |||||||||||||||
Demand deposits | $512,307 | $539,119 | $537,298 | $513,856 | $457,755 | ||||||||||
NOW accounts | 414,532 | 394,873 | 412,602 | 358,973 | 357,922 | ||||||||||
Money market accounts | 675,896 | 763,565 | 823,490 | 855,858 | 789,334 | ||||||||||
Savings accounts | 342,579 | 331,800 | 326,967 | 305,775 | 300,108 | ||||||||||
Time deposits | 844,036 | 850,294 | 833,898 | 801,818 | 834,000 | ||||||||||
Total deposits | 2,789,350 | 2,879,651 | 2,934,255 | 2,836,280 | 2,739,119 | ||||||||||
Federal Home Loan Bank advances | 640,010 | 487,189 | 378,973 | 381,649 | 471,321 | ||||||||||
Junior subordinated debentures | 22,681 | 22,681 | 22,681 | 22,681 | 22,681 | ||||||||||
Other liabilities | 76,708 | 67,409 | 60,307 | 63,699 | 52,189 | ||||||||||
Total liabilities | 3,528,749 | 3,456,930 | 3,396,216 | 3,304,309 | 3,285,310 | ||||||||||
Shareholders’ Equity: | |||||||||||||||
Common stock | 1,068 | 1,064 | 1,064 | 1,062 | 1,052 | ||||||||||
Paid-in capital | 112,314 | 111,641 | 110,949 | 109,724 | 103,408 | ||||||||||
Retained earnings | 282,666 | 277,810 | 273,074 | 268,166 | 263,790 | ||||||||||
Accumulated other comprehensive loss | (7,716 | ) | (9,235 | ) | (9,699 | ) | (8,425 | ) | (9,083 | ) | |||||
Total shareholders’ equity | 388,332 | 381,280 | 375,388 | 370,527 | 359,167 | ||||||||||
Total liabilities and shareholders’ equity | $3,917,081 | $3,838,210 | $3,771,604 | $3,674,836 | $3,644,477 |
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||||||
(Unaudited; Dollars in thousands, except per share amounts) | ||||||||||||||||||||||
For the Six Months Ended | ||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||
Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Jun 30, 2016 | Jun 30, 2015 | ||||||||||||||||
Interest income: | ||||||||||||||||||||||
Interest and fees on loans | $29,122 | $29,998 | $28,511 | $28,626 | $28,739 | $59,120 | $57,092 | |||||||||||||||
Taxable interest on securities | 2,487 | 2,370 | 2,262 | 2,178 | 2,176 | 4,857 | 4,435 | |||||||||||||||
Nontaxable interest on securities | 280 | 327 | 352 | 366 | 402 | 607 | 837 | |||||||||||||||
Dividends on Federal Home Loan Bank stock | 231 | 210 | 315 | 309 | 164 | 441 | 329 | |||||||||||||||
Other interest income | 70 | 64 | 37 | 47 | 29 | 134 | 54 | |||||||||||||||
Total interest and dividend income | 32,190 | 32,969 | 31,477 | 31,526 | 31,510 | 65,159 | 62,747 | |||||||||||||||
Interest expense: | ||||||||||||||||||||||
Deposits | 2,981 | 2,968 | 3,097 | 3,308 | 3,348 | 5,949 | 6,737 | |||||||||||||||
Federal Home Loan Bank advances | 2,313 | 2,152 | 1,966 | 1,987 | 1,891 | 4,465 | 3,793 | |||||||||||||||
Junior subordinated debentures | 119 | 112 | 157 | 232 | 241 | 231 | 482 | |||||||||||||||
Other interest expense | 1 | 2 | 2 | 2 | 2 | 3 | 5 | |||||||||||||||
Total interest expense | 5,414 | 5,234 | 5,222 | 5,529 | 5,482 | 10,648 | 11,017 | |||||||||||||||
Net interest income | 26,776 | 27,735 | 26,255 | 25,997 | 26,028 | 54,511 | 51,730 | |||||||||||||||
Provision for loan losses | 450 | 500 | 750 | 200 | 100 | 950 | 100 | |||||||||||||||
Net interest income after provision for loan losses | 26,326 | 27,235 | 25,505 | 25,797 | 25,928 | 53,561 | 51,630 | |||||||||||||||
Noninterest income: | ||||||||||||||||||||||
Wealth management revenues | 9,481 | 9,174 | 9,167 | 8,902 | 8,912 | 18,655 | 17,347 | |||||||||||||||
Mortgage banking revenues | 2,710 | 2,198 | 2,582 | 1,990 | 2,741 | 4,908 | 5,329 | |||||||||||||||
Service charges on deposit accounts | 935 | 907 | 971 | 986 | 973 | 1,842 | 1,908 | |||||||||||||||
Card interchange fees | 860 | 797 | 810 | 849 | 826 | 1,657 | 1,540 | |||||||||||||||
Income from bank-owned life insurance | 1,090 | 499 | 502 | 498 | 492 | 1,589 | 982 | |||||||||||||||
Loan related derivative income | 508 | 645 | 752 | 327 | 717 | 1,153 | 1,362 | |||||||||||||||
Equity in losses of unconsolidated subsidiaries | (89 | ) | (88 | ) | (69 | ) | (69 | ) | (69 | ) | (177 | ) | (155 | ) | ||||||||
Other income | 419 | 502 | 431 | 430 | 669 | 921 | 968 | |||||||||||||||
Total noninterest income | 15,914 | 14,634 | 15,146 | 13,913 | 15,261 | 30,548 | 29,281 | |||||||||||||||
Noninterest expense: | ||||||||||||||||||||||
Salaries and employee benefits | 17,405 | 16,380 | 16,053 | 15,971 | 15,506 | 33,785 | 31,000 | |||||||||||||||
Net occupancy | 1,803 | 1,807 | 1,724 | 1,721 | 1,669 | 3,610 | 3,555 | |||||||||||||||
Equipment | 1,503 | 1,501 | 1,393 | 1,424 | 1,376 | 3,004 | 2,716 | |||||||||||||||
Outsourced services | 1,294 | 1,363 | 1,337 | 1,250 | 1,277 | 2,657 | 2,524 | |||||||||||||||
Legal, audit and professional fees | 662 | 629 | 825 | 630 | 610 | 1,291 | 1,286 | |||||||||||||||
FDIC deposit insurance costs | 491 | 493 | 470 | 467 | 436 | 984 | 909 | |||||||||||||||
Advertising and promotion | 420 | 265 | 325 | 356 | 578 | 685 | 845 | |||||||||||||||
Amortization of intangibles | 322 | 323 | 333 | 260 | 156 | 645 | 311 | |||||||||||||||
Debt prepayment penalties | — | 431 | — | — | — | 431 | — | |||||||||||||||
Acquisition related expenses | — | — | 52 | 504 | 433 | — | 433 | |||||||||||||||
Other expenses | 2,130 | 2,258 | 2,049 | 1,955 | 2,258 | 4,388 | 4,251 | |||||||||||||||
Total noninterest expense | 26,030 | 25,450 | 24,561 | 24,538 | 24,299 | 51,480 | 47,830 | |||||||||||||||
Income before income taxes | 16,210 | 16,419 | 16,090 | 15,172 | 16,890 | 32,629 | 33,081 | |||||||||||||||
Income tax expense | 5,153 | 5,484 | 5,346 | 4,964 | 5,387 | 10,637 | 10,568 | |||||||||||||||
Net income | $11,057 | $10,935 | $10,744 | $10,208 | $11,503 | $21,992 | $22,513 | |||||||||||||||
Net income available to common shareholders: | ||||||||||||||||||||||
Basic | $11,035 | $10,910 | $10,718 | $10,181 | $11,469 | $21,945 | $22,440 | |||||||||||||||
Diluted | $11,035 | $10,910 | $10,718 | $10,180 | $11,470 | $21,945 | $22,441 | |||||||||||||||
Weighted average common shares outstanding: | ||||||||||||||||||||||
Basic | 17,067 | 17,023 | 17,004 | 16,939 | 16,811 | 17,045 | 16,785 | |||||||||||||||
Diluted | 17,194 | 17,157 | 17,167 | 17,102 | 16,989 | 17,185 | 16,977 | |||||||||||||||
Earnings per common share: | ||||||||||||||||||||||
Basic | $0.65 | $0.64 | $0.63 | $0.60 | $0.68 | $1.29 | $1.34 | |||||||||||||||
Diluted | $0.64 | $0.64 | $0.62 | $0.60 | $0.68 | $1.28 | $1.32 | |||||||||||||||
Cash dividends declared per share | $0.36 | $0.36 | $0.34 | $0.34 | $0.34 | $0.72 | $0.68 |
SELECTED FINANCIAL HIGHLIGHTS | |||||||||||||||
(Unaudited; Dollars in thousands, except per share amounts) | |||||||||||||||
Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | |||||||||||
Share and Equity Related Data: | |||||||||||||||
Book value per share | $22.73 | $22.40 | $22.06 | $21.82 | $21.34 | ||||||||||
Tangible book value per share - Non-GAAP (1) | $18.35 | $17.98 | $17.62 | $17.36 | $17.61 | ||||||||||
Market value per share | $37.92 | $37.32 | $39.52 | $38.45 | $39.48 | ||||||||||
Shares issued and outstanding at end of period | 17,081 | 17,024 | 17,020 | 16,985 | 16,834 | ||||||||||
Capital Ratios: | |||||||||||||||
Tier 1 risk-based capital | 11.57% (i) | 11.56 | % | 11.64 | % | 11.83 | % | 11.79 | % | ||||||
Total risk-based capital | 12.43% (i) | 12.45 | % | 12.58 | % | 12.80 | % | 12.78 | % | ||||||
Tier 1 leverage ratio | 9.21% (i) | 9.31 | % | 9.37 | % | 9.26 | % | 9.31 | % | ||||||
Common equity tier 1 | 10.84% (i) | 10.82 | % | 10.89 | % | 11.05 | % | 11.00 | % | ||||||
Equity to assets | 9.91 | % | 9.93 | % | 9.95 | % | 10.08 | % | 9.86 | % | |||||
Tangible equity to tangible assets - Non-GAAP (1) | 8.16 | % | 8.13 | % | 8.11 | % | 8.18 | % | 8.28 | % | |||||
(i) - estimated |
For the Six Months Ended | |||||||||||||||
For the Three Months Ended | |||||||||||||||
Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Jun 30, 2016 | Jun 30, 2015 | |||||||||
Performance Ratios: | |||||||||||||||
Net interest margin (FTE) | 3.05 | % | 3.24 | % | 3.08 | % | 3.07 | % | 3.15 | % | 3.15 | % | 3.16 | % | |
Return on average assets | 1.14 | % | 1.16 | % | 1.16 | % | 1.11 | % | 1.27 | % | 1.15 | % | 1.25 | % | |
Return on average tangible assets - Non-GAAP (1) | 1.17 | % | 1.18 | % | 1.19 | % | 1.13 | % | 1.29 | % | 1.17 | % | 1.27 | % | |
Return on average equity | 11.50 | % | 11.50 | % | 11.52 | % | 11.13 | % | 12.88 | % | 11.50 | % | 12.71 | % | |
Return on average tangible equity - Non-GAAP (1) | 14.28 | % | 14.34 | % | 14.45 | % | 13.82 | % | 15.62 | % | 14.31 | % | 15.45 | % |
(1) | See the section labeled “Supplemental Information - Non-GAAP Financial Measures” at the end of this document. |
SELECTED FINANCIAL HIGHLIGHTS | ||||||||||||||||||||||
(Unaudited; Dollars in thousands) | ||||||||||||||||||||||
For the Six Months Ended | ||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||
Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Jun 30, 2016 | Jun 30, 2015 | ||||||||||||||||
Wealth Management Results | ||||||||||||||||||||||
Wealth Management Revenues: | ||||||||||||||||||||||
Trust and investment management fees | $8,195 | $8,065 | $8,001 | $7,768 | $7,238 | $16,260 | $14,380 | |||||||||||||||
Mutual fund fees | 812 | 843 | 952 | 989 | 1,032 | 1,655 | 2,068 | |||||||||||||||
Asset-based revenues | 9,007 | 8,908 | 8,953 | 8,757 | 8,270 | 17,915 | 16,448 | |||||||||||||||
Transaction-based revenues | 474 | 266 | 214 | 145 | 642 | 740 | 899 | |||||||||||||||
Total wealth management revenues | $9,481 | $9,174 | $9,167 | $8,902 | $8,912 | $18,655 | $17,347 | |||||||||||||||
Assets Under Administration: | ||||||||||||||||||||||
Balance at beginning of period | $5,878,967 | $5,844,636 | $5,714,201 | $5,211,548 | $5,159,663 | $5,844,636 | $5,069,966 | |||||||||||||||
Acquisition of Halsey Associates, Inc. | — | — | — | 839,994 | — | — | — | |||||||||||||||
Net investment appreciation (depreciation) & income | 71,447 | 22,389 | 153,953 | (316,121 | ) | (13,932 | ) | 93,835 | 66,940 | |||||||||||||
Net client asset flows | (45,395 | ) | 11,942 | (23,518 | ) | (21,220 | ) | 65,817 | (33,452 | ) | 74,642 | |||||||||||
Balance at end of period | $5,905,019 | $5,878,967 | $5,844,636 | $5,714,201 | $5,211,548 | $5,905,019 | $5,211,548 | |||||||||||||||
Mortgage Banking Results | ||||||||||||||||||||||
Mortgage Banking Revenues: | ||||||||||||||||||||||
Gains & commissions on loan sales, net | $2,804 | $2,134 | $2,528 | $1,964 | $2,748 | $4,938 | $5,333 | |||||||||||||||
Residential mortgage servicing fee income, net | (94 | ) | 64 | 54 | 26 | (7 | ) | (30 | ) | (4 | ) | |||||||||||
Total mortgage banking revenues | $2,710 | $2,198 | $2,582 | $1,990 | $2,741 | $4,908 | $5,329 | |||||||||||||||
Residential Mortgage Loan Originations: | ||||||||||||||||||||||
Originations for retention in portfolio | $54,080 | $47,545 | $38,080 | $76,963 | $65,134 | $101,626 | $119,809 | |||||||||||||||
Originations for sale to secondary market (1) | 154,043 | 90,458 | 134,125 | 126,353 | 134,360 | $244,501 | 263,356 | |||||||||||||||
Total mortgage loan originations | $208,123 | $138,003 | $172,205 | $203,316 | $199,494 | $346,127 | $383,165 | |||||||||||||||
Residential Mortgage Loans Sold: | ||||||||||||||||||||||
Sold with servicing rights retained | $45,804 | $26,454 | $44,493 | $37,782 | $32,693 | $72,258 | $79,949 | |||||||||||||||
Sold with servicing rights released (1) | 93,239 | 79,507 | 82,906 | 94,645 | 110,484 | $172,746 | 191,125 | |||||||||||||||
Total mortgage loans sold | $139,043 | $105,961 | $127,399 | $132,427 | $143,177 | $245,004 | $271,074 |
(1) | Also includes loans originated in a broker capacity. |
END OF PERIOD LOAN AND DEPOSIT COMPOSITION | |||||||||||||||
(Unaudited; Dollars in thousands) | |||||||||||||||
Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | |||||||||||
Commercial: | |||||||||||||||
Mortgages | $1,074,747 | $976,931 | $931,953 | $873,767 | $876,589 | ||||||||||
Construction & development | 81,812 | 123,032 | 122,297 | 121,857 | 110,989 | ||||||||||
Commercial & industrial | 575,661 | 598,848 | 600,297 | 584,230 | 595,959 | ||||||||||
Total commercial | 1,732,220 | 1,698,811 | 1,654,547 | 1,579,854 | 1,583,537 | ||||||||||
Residential real estate: | |||||||||||||||
Mortgages | 978,399 | 980,274 | 984,437 | 994,808 | 971,705 | ||||||||||
Homeowner construction | 26,637 | 24,075 | 29,118 | 29,406 | 29,558 | ||||||||||
Total residential real estate | 1,005,036 | 1,004,349 | 1,013,555 | 1,024,214 | 1,001,263 | ||||||||||
Consumer: | |||||||||||||||
Home equity lines | 260,541 | 258,513 | 255,565 | 252,862 | 249,845 | ||||||||||
Home equity loans | 39,572 | 45,499 | 46,649 | 47,610 | 47,437 | ||||||||||
Other | 43,515 | 39,821 | 42,811 | 45,378 | 46,502 | ||||||||||
Total consumer | 343,628 | 343,833 | 345,025 | 345,850 | 343,784 | ||||||||||
Total loans | $3,080,884 | $3,046,993 | $3,013,127 | $2,949,918 | $2,928,584 |
June 30, 2016 | December 31, 2015 | ||||||||||
Balance | % of Total | Balance | % of Total | ||||||||
Commercial Real Estate Loans by Property Location: | |||||||||||
Rhode Island, Connecticut, Massachusetts | $1,073,506 | 92.9 | % | $959,883 | 91.0 | % | |||||
New York, New Jersey, Pennsylvania | 69,872 | 6.0 | % | 80,989 | 7.7 | % | |||||
New Hampshire | 13,181 | 1.1 | % | 13,377 | 1.3 | % | |||||
Total commercial real estate loans (1) | $1,156,559 | 100.0 | % | $1,054,249 | 100.0 | % | |||||
Residential Mortgages by Property Location: | |||||||||||
Rhode Island, Connecticut, Massachusetts | $989,085 | 98.5 | % | $995,743 | 98.2 | % | |||||
New Hampshire, Vermont | 9,500 | 0.9 | % | 10,186 | 1.0 | % | |||||
New York, Virginia, New Jersey, Maryland, Pennsylvania | 3,434 | 0.3 | % | 4,163 | 0.4 | % | |||||
Ohio | 1,132 | 0.1 | % | 1,557 | 0.2 | % | |||||
Other | 1,885 | 0.2 | % | 1,906 | 0.2 | % | |||||
Total residential mortgages | $1,005,036 | 100.0 | % | $1,013,555 | 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. |
Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | |||||||||||
Deposits: | |||||||||||||||
Non-interest bearing demand deposits | $476,848 | $474,477 | $475,398 | $472,349 | $429,904 | ||||||||||
Interest-bearing demand deposits | 35,459 | 64,642 | 61,900 | 41,507 | 27,851 | ||||||||||
NOW accounts | 414,532 | 394,873 | 412,602 | 358,973 | 357,922 | ||||||||||
Money market accounts | 675,896 | 763,565 | 823,490 | 855,858 | 789,334 | ||||||||||
Savings accounts | 342,579 | 331,800 | 326,967 | 305,775 | 300,108 | ||||||||||
Time deposits (in-market) | 549,935 | 540,815 | 531,419 | 534,266 | 549,410 | ||||||||||
Wholesale brokered time deposits | 294,101 | 309,479 | 302,479 | 267,552 | 284,590 | ||||||||||
Total deposits | $2,789,350 | $2,879,651 | $2,934,255 | $2,836,280 | $2,739,119 |
CREDIT & ASSET QUALITY DATA | |||||||||||||||
(Unaudited; Dollars in thousands) | |||||||||||||||
Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | |||||||||||
Asset Quality Ratios: | |||||||||||||||
Nonperforming assets to total assets | 0.48 | % | 0.49 | % | 0.58 | % | 0.48 | % | 0.45 | % | |||||
Nonaccrual loans to total loans | 0.56 | % | 0.57 | % | 0.70 | % | 0.57 | % | 0.52 | % | |||||
Allowance for loan losses to nonaccrual loans | 149.73 | % | 150.00 | % | 128.61 | % | 161.25 | % | 182.32 | % | |||||
Allowance for loan losses to total loans | 0.84 | % | 0.86 | % | 0.90 | % | 0.92 | % | 0.94 | % | |||||
Nonperforming Assets: | |||||||||||||||
Commercial mortgages | $4,054 | $4,054 | $5,711 | $4,915 | $4,915 | ||||||||||
Commercial construction & development | — | — | — | — | — | ||||||||||
Commercial & industrial | 1,204 | 2,659 | 3,018 | 1,137 | 1,039 | ||||||||||
Residential real estate mortgages | 10,409 | 9,367 | 10,666 | 9,472 | 7,411 | ||||||||||
Consumer | 1,581 | 1,345 | 1,652 | 1,320 | 1,766 | ||||||||||
Total nonaccrual loans | 17,248 | 17,425 | 21,047 | 16,844 | 15,131 | ||||||||||
Other real estate owned | 1,515 | 1,326 | 716 | 955 | 1,388 | ||||||||||
Total nonperforming assets | $18,763 | $18,751 | $21,763 | $17,799 | $16,519 | ||||||||||
Past Due Loans: | |||||||||||||||
Commercial mortgages | $4,062 | $4,564 | $4,555 | $5,062 | $4,929 | ||||||||||
Commercial & industrial | 1,978 | 2,906 | 462 | 4,337 | 5,518 | ||||||||||
Residential real estate mortgages | 8,893 | 8,703 | 9,286 | 10,567 | 10,904 | ||||||||||
Consumer loans | 2,201 | 2,122 | 3,256 | 1,845 | 2,678 | ||||||||||
Total past due loans | $17,134 | $18,295 | $17,559 | $21,811 | $24,029 | ||||||||||
Total past due loans to total loans | 0.56 | % | 0.60 | % | 0.58 | % | 0.74 | % | 0.82 | % | |||||
Accruing loans 90 days or more past due | $— | $— | $— | $— | $— | ||||||||||
Nonaccrual loans included in past due loans | $13,211 | $14,030 | $13,635 | $13,964 | $12,397 |
For the Six Months Ended | ||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||
Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Jun 30, 2016 | Jun 30, 2015 | ||||||||||||||||
Nonaccrual Loan Activity: | ||||||||||||||||||||||
Balance at beginning of period | $17,425 | $21,047 | $16,844 | $15,131 | $15,865 | $21,047 | $15,945 | |||||||||||||||
Additions to nonaccrual status | 2,072 | 1,352 | 7,029 | 3,319 | 2,567 | 3,424 | 4,175 | |||||||||||||||
Loans returned to accruing status | — | (206 | ) | (303 | ) | (156 | ) | (1,756 | ) | (206 | ) | (2,122 | ) | |||||||||
Loans charged-off | (860 | ) | (1,475 | ) | (904 | ) | (725 | ) | (355 | ) | (2,335 | ) | (676 | ) | ||||||||
Loans transferred to other real estate owned | (435 | ) | (610 | ) | (716 | ) | — | (261 | ) | (1,045 | ) | (491 | ) | |||||||||
Payments, payoffs and other changes | (954 | ) | (2,683 | ) | (903 | ) | (725 | ) | (929 | ) | (3,637 | ) | (1,700 | ) | ||||||||
Balance at end of period | $17,248 | $17,425 | $21,047 | $16,844 | $15,131 | $17,248 | $15,131 | |||||||||||||||
Allowance for Loan Losses: | ||||||||||||||||||||||
Balance at beginning of period | $26,137 | $27,069 | $27,161 | $27,587 | $27,810 | $27,069 | $28,023 | |||||||||||||||
Provision charged to earnings | 450 | 500 | 750 | 200 | 100 | 950 | 100 | |||||||||||||||
Charge-offs | (860 | ) | (1,475 | ) | (904 | ) | (725 | ) | (355 | ) | (2,335 | ) | (676 | ) | ||||||||
Recoveries | 99 | 43 | 62 | 99 | 32 | 142 | 140 | |||||||||||||||
Balance at end of period | $25,826 | $26,137 | $27,069 | $27,161 | $27,587 | $25,826 | $27,587 | |||||||||||||||
Net Loan Charge-Offs (Recoveries): | ||||||||||||||||||||||
Commercial mortgages | $65 | $1,249 | $405 | ($4 | ) | $196 | $1,314 | $316 | ||||||||||||||
Commercial & industrial | 684 | (18 | ) | 217 | 348 | 26 | 666 | 19 | ||||||||||||||
Residential real estate mortgages | 2 | 134 | 117 | 12 | 4 | 136 | 50 | |||||||||||||||
Consumer | 10 | 67 | 103 | 270 | 97 | 77 | 151 | |||||||||||||||
Total | $761 | $1,432 | $842 | $626 | $323 | $2,193 | $536 | |||||||||||||||
Net charge-offs to average loans (annualized) | 0.10 | % | 0.19 | % | 0.11 | % | 0.08 | % | 0.04 | % | 0.14 | % | 0.04 | % |
CONSOLIDATED AVERAGE BALANCE SHEETS | |||||||||||||||||||||||
(Unaudited; Dollars in thousands) | |||||||||||||||||||||||
For the Three Months Ended | June 30, 2016 | March 31, 2016 | June 30, 2015 | ||||||||||||||||||||
Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | |||||||||||||||
Assets: | |||||||||||||||||||||||
Commercial mortgages | $1,019,290 | $8,992 | 3.55 | $933,939 | $8,215 | 3.54 | $873,212 | $7,779 | 3.57 | ||||||||||||||
Construction & development | 117,204 | 985 | 3.38 | 129,217 | 1,108 | 3.45 | 99,435 | 773 | 3.12 | ||||||||||||||
Commercial & industrial | 591,893 | 6,408 | 4.35 | 604,519 | 7,681 | 5.11 | 601,536 | 7,378 | 4.92 | ||||||||||||||
Total commercial loans | $1,728,387 | $16,385 | 3.81 | $1,667,675 | $17,004 | 4.10 | $1,574,183 | $15,930 | 4.06 | ||||||||||||||
Residential real estate loans, including loans held for sale | 1,024,653 | 9,980 | 3.92 | 1,031,260 | 10,155 | 3.96 | 1,025,029 | 10,102 | 3.95 | ||||||||||||||
Consumer loans | 342,866 | 3,311 | 3.88 | 343,519 | 3,393 | 3.97 | 338,809 | 3,183 | 3.77 | ||||||||||||||
Total loans | 3,095,906 | 29,676 | 3.86 | 3,042,454 | 30,552 | 4.04 | 2,938,021 | 29,215 | 3.99 | ||||||||||||||
Cash, federal funds sold and short-term investments | 69,839 | 70 | 0.40 | 68,488 | 64 | 0.38 | 63,858 | 29 | 0.18 | ||||||||||||||
FHLBB stock | 31,723 | 231 | 2.93 | 25,597 | 210 | 3.30 | 37,730 | 164 | 1.74 | ||||||||||||||
Taxable debt securities | 396,428 | 2,487 | 2.52 | 359,060 | 2,370 | 2.65 | 320,643 | 2,176 | 2.72 | ||||||||||||||
Nontaxable debt securities | 28,531 | 433 | 6.10 | 33,313 | 507 | 6.12 | 40,886 | 627 | 6.15 | ||||||||||||||
Total securities | 424,959 | 2,920 | 2.76 | 392,373 | 2,877 | 2.95 | 361,529 | 2,803 | 3.11 | ||||||||||||||
Total interest-earning assets | 3,622,427 | 32,897 | 3.65 | 3,528,912 | 33,703 | 3.84 | 3,401,138 | 32,211 | 3.80 | ||||||||||||||
Noninterest-earning assets | 247,081 | 240,113 | 221,577 | ||||||||||||||||||||
Total assets | $3,869,508 | $3,769,025 | $3,622,715 | ||||||||||||||||||||
Liabilities and Shareholders' Equity: | |||||||||||||||||||||||
Interest-bearing demand deposits | $42,952 | $7 | 0.07 | $50,704 | $13 | 0.10 | $38,129 | $3 | 0.03 | ||||||||||||||
NOW accounts | 403,136 | 53 | 0.05 | 386,488 | 56 | 0.06 | 363,434 | 53 | 0.06 | ||||||||||||||
Money market accounts | 710,075 | 459 | 0.26 | 786,633 | 515 | 0.26 | 820,887 | 941 | 0.46 | ||||||||||||||
Savings accounts | 338,504 | 49 | 0.06 | 328,174 | 49 | 0.06 | 298,286 | 50 | 0.07 | ||||||||||||||
Time deposits (in-market) | 542,621 | 1,345 | 1.00 | 538,035 | 1,315 | 0.98 | 554,839 | 1,390 | 1.00 | ||||||||||||||
Wholesale brokered time deposits | 302,707 | 1,068 | 1.42 | 296,801 | 1,020 | 1.38 | 285,844 | 911 | 1.28 | ||||||||||||||
FHLBB advances | 587,395 | 2,313 | 1.58 | 453,019 | 2,152 | 1.91 | 391,152 | 1,891 | 1.94 | ||||||||||||||
Junior subordinated debentures | 22,681 | 119 | 2.11 | 22,681 | 112 | 1.99 | 22,681 | 241 | 4.26 | ||||||||||||||
Other | 66 | 1 | 6.09 | 79 | 2 | 10.18 | 116 | 2 | 6.92 | ||||||||||||||
Total interest-bearing liabilities | 2,950,137 | 5,414 | 0.74 | 2,862,614 | 5,234 | 0.74 | 2,775,368 | 5,482 | 0.79 | ||||||||||||||
Demand deposits | 473,731 | 471,782 | 441,355 | ||||||||||||||||||||
Other liabilities | 60,923 | 54,287 | 48,627 | ||||||||||||||||||||
Shareholders' equity | 384,717 | 380,342 | 357,365 | ||||||||||||||||||||
Total liabilities and shareholders' equity | $3,869,508 | $3,769,025 | $3,622,715 | ||||||||||||||||||||
Net interest income (FTE) | $27,483 | $28,469 | $26,729 | ||||||||||||||||||||
Interest rate spread | 2.91 | 3.10 | 3.01 | ||||||||||||||||||||
Net interest margin | 3.05 | 3.24 | 3.15 |
For the Three Months Ended | Jun 30, 2016 | Mar 31, 2016 | Jun 30, 2015 | ||||||
Commercial loans | $554 | $554 | $476 | ||||||
Nontaxable debt securities | 153 | 180 | 225 | ||||||
Total | $707 | $734 | $701 |
CONSOLIDATED AVERAGE BALANCE SHEETS | |||||||||||||||
(Unaudited; Dollars in thousands) | |||||||||||||||
For the Six Months Ended | June 30, 2016 | June 30, 2015 | |||||||||||||
Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | ||||||||||
Assets: | |||||||||||||||
Commercial mortgages | $976,619 | $17,207 | 3.54 | $862,638 | $15,496 | 3.62 | |||||||||
Construction & development | 123,209 | 2,093 | 3.42 | 91,911 | 1,439 | 3.16 | |||||||||
Commercial & industrial | 598,203 | 14,089 | 4.74 | 604,984 | 14,307 | 4.77 | |||||||||
Total commercial loans | 1,698,031 | 33,389 | 3.95 | 1,559,533 | 31,242 | 4.04 | |||||||||
Residential real estate loans, including loans held for sale | 1,027,956 | 20,135 | 3.94 | 1,027,509 | 20,416 | 4.01 | |||||||||
Consumer loans | 343,193 | 6,704 | 3.93 | 337,578 | 6,351 | 3.79 | |||||||||
Total loans | 3,069,180 | 60,228 | 3.95 | 2,924,620 | 58,009 | 4.00 | |||||||||
Cash, federal funds sold and short-term investments | 69,164 | 134 | 0.39 | 57,492 | 54 | 0.19 | |||||||||
FHLBB stock | 28,660 | 441 | 3.09 | 37,730 | 329 | 1.76 | |||||||||
Taxable debt securities | 377,744 | 4,857 | 2.59 | 321,602 | 4,435 | 2.78 | |||||||||
Nontaxable debt securities | 30,922 | 940 | 6.11 | 42,762 | 1,291 | 6.09 | |||||||||
Total securities | 408,666 | 5,797 | 2.85 | 364,364 | 5,726 | 3.17 | |||||||||
Total interest-earning assets | 3,575,670 | 66,600 | 3.75 | 3,384,206 | 64,118 | 3.82 | |||||||||
Noninterest-earning assets | 243,597 | 221,686 | |||||||||||||
Total assets | $3,819,267 | $3,605,892 | |||||||||||||
Liabilities and Shareholders' Equity: | |||||||||||||||
Interest-bearing demand deposits | $46,828 | $20 | 0.09 | $37,991 | $11 | 0.06 | |||||||||
NOW accounts | 394,812 | 110 | 0.06 | 346,605 | 100 | 0.06 | |||||||||
Money market accounts | 748,354 | 975 | 0.26 | 810,519 | 1,825 | 0.45 | |||||||||
Savings accounts | 333,339 | 96 | 0.06 | 296,117 | 96 | 0.07 | |||||||||
Time deposits (in-market) | 540,328 | 2,659 | 0.99 | 560,917 | 2,859 | 1.03 | |||||||||
Wholesale brokered time deposits | 299,754 | 2,089 | 1.40 | 290,230 | 1,846 | 1.28 | |||||||||
FHLBB advances | 520,207 | 4,465 | 1.73 | 397,925 | 3,793 | 1.92 | |||||||||
Junior subordinated debentures | 22,681 | 231 | 2.05 | 22,681 | 482 | 4.29 | |||||||||
Other | 73 | 3 | 8.26 | 122 | 5 | 8.26 | |||||||||
Total interest-bearing liabilities | 2,906,376 | 10,648 | 0.74 | 2,763,107 | 11,017 | 0.80 | |||||||||
Demand deposits | 472,757 | 440,136 | |||||||||||||
Other liabilities | 57,605 | 48,342 | |||||||||||||
Shareholders' equity | 382,529 | 354,307 | |||||||||||||
Total liabilities and shareholders' equity | $3,819,267 | $3,605,892 | |||||||||||||
Net interest income (FTE) | $55,952 | $53,101 | |||||||||||||
Interest rate spread | 3.01 | 3.02 | |||||||||||||
Net interest margin | 3.15 | 3.16 |
For the Six Months Ended | Jun 30, 2016 | Jun 30, 2015 | ||||
Commercial loans | $1,108 | $917 | ||||
Nontaxable debt securities | 333 | 454 | ||||
Total | $1,441 | $1,371 |
SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures | |||||||||||||||
(Unaudited; Dollars in thousands, except per share amounts) | |||||||||||||||
Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | |||||||||||
Tangible Book Value per Share: | |||||||||||||||
Total shareholders' equity, as reported | $388,332 | $381,280 | $375,388 | $370,527 | $359,167 | ||||||||||
Less: | |||||||||||||||
Goodwill | 64,059 | 64,059 | 64,059 | 64,196 | 58,114 | ||||||||||
Identifiable intangible assets, net | 10,814 | 11,137 | 11,460 | 11,793 | 4,539 | ||||||||||
Total tangible shareholders' equity | $313,459 | $306,084 | $299,869 | $294,538 | $296,514 | ||||||||||
Shares outstanding, as reported | 17,081 | 17,024 | 17,020 | 16,985 | 16,834 | ||||||||||
Book value per share - GAAP | $22.73 | $22.40 | $22.06 | $21.82 | $21.34 | ||||||||||
Tangible book value per share - Non-GAAP | $18.35 | $17.98 | $17.62 | $17.34 | $17.61 | ||||||||||
Tangible Equity to Tangible Assets: | |||||||||||||||
Total tangible shareholders' equity | $313,459 | $306,084 | $299,869 | $294,538 | $296,514 | ||||||||||
Total assets, as reported | $3,917,081 | $3,838,210 | $3,771,604 | $3,674,836 | $3,644,477 | ||||||||||
Less: | |||||||||||||||
Goodwill | 64,059 | 64,059 | 64,059 | 64,196 | 58,114 | ||||||||||
Identifiable intangible assets, net | 10,814 | 11,137 | 11,460 | 11,793 | 4,539 | ||||||||||
Total tangible assets | $3,842,208 | $3,763,014 | $3,696,085 | $3,598,847 | $3,581,824 | ||||||||||
Equity to assets - GAAP | 9.91 | % | 9.93 | % | 9.95 | % | 10.08 | % | 9.86 | % | |||||
Tangible equity to tangible assets - Non-GAAP | 8.16 | % | 8.13 | % | 8.11 | % | 8.18 | % | 8.28 | % |
For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||||
Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Jun 30, 2016 | Jun 30, 2015 | ||||||||||||||||
Return on Average Tangible Assets: | ||||||||||||||||||||||
Net income, as reported | $11,057 | $10,935 | $10,744 | $10,208 | $11,503 | $21,992 | $22,513 | |||||||||||||||
Total average assets, as reported | $3,869,508 | $3,769,025 | $3,700,441 | $3,678,487 | $3,622,715 | $3,819,267 | $3,605,892 | |||||||||||||||
Less average balances of: | ||||||||||||||||||||||
Goodwill | 64,059 | 64,059 | 64,194 | 62,524 | 58,114 | 64,059 | 58,114 | |||||||||||||||
Identifiable intangible assets, net | 10,972 | 11,294 | 11,616 | 8,768 | 4,614 | 11,133 | 4,691 | |||||||||||||||
Total average tangible assets | $3,794,477 | $3,693,672 | $3,624,631 | $3,607,195 | $3,559,987 | $3,744,075 | $3,543,087 | |||||||||||||||
Return on average assets - GAAP | 1.14 | % | 1.16 | % | 1.16 | % | 1.11 | % | 1.27 | % | 1.15 | % | 1.25 | % | ||||||||
Return on average tangible assets - Non-GAAP | 1.17 | % | 1.18 | % | 1.19 | % | 1.13 | % | 1.29 | % | 1.17 | % | 1.27 | % | ||||||||
Return on Average Tangible Equity: | ||||||||||||||||||||||
Net income, as reported | $11,057 | $10,935 | $10,744 | $10,208 | $11,503 | $21,992 | $22,513 | |||||||||||||||
Total average equity, as reported | $384,717 | $380,342 | $373,197 | $366,724 | $357,365 | $382,529 | $354,307 | |||||||||||||||
Less average balances of: | ||||||||||||||||||||||
Goodwill | 64,059 | 64,059 | 64,194 | 62,524 | 58,114 | 64,059 | 58,114 | |||||||||||||||
Identifiable intangible assets, net | 10,972 | 11,294 | 11,616 | 8,768 | 4,614 | 11,133 | 4,691 | |||||||||||||||
Total average tangible equity | $309,686 | $304,989 | $297,387 | $295,432 | $294,637 | $307,337 | $291,502 | |||||||||||||||
Return on average equity - GAAP | 11.50 | % | 11.50 | % | 11.52 | % | 11.13 | % | 12.88 | % | 11.50 | % | 12.71 | % | ||||||||
Return on average tangible equity - Non-GAAP | 14.28 | % | 14.34 | % | 14.45 | % | 13.82 | % | 15.62 | % | 14.31 | % | 15.45 | % |
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