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 January 25, 2017* | |||
*Filed herewith |
WASHINGTON TRUST BANCORP, INC. | ||||
Date: | January 25, 2017 | By: | /s/ David V. Devault | |
David V. Devault | ||||
Vice Chair, Secretary and Chief Financial Officer |
• | Total deposits amounted to $3.1 billion at December 31, 2016, up by 1% from the third quarter. Total deposits were up by 4% from a year ago. |
• | Wealth management revenues of $37.6 million for the year 2016 and wealth management assets of $6.1 billion at December 31, 2016 were all-time highs for the Corporation. |
• | Mortgage banking revenues rose by 22% on a linked quarter basis. Mortgage banking revenues and loans sold during the quarter were record highs for Washington Trust. |
• | Average interest-earning assets increased by $224 million from the third quarter, reflecting a $133 million increase in the average balance of investment securities and a $101 million increase in the average balance of loans. The yield on interest-earning assets was 3.53%, down by 2 basis points from the preceding quarter. |
• | Average interest-bearing liabilities increased by $183 million from the preceding quarter, reflecting increases of $113 million in the average balance of wholesale funding balances (FHLBB advances and wholesale brokered time deposits) and $70 million in the average balance of in-market interest-bearing deposits. The cost of interest-bearing funds was 0.79%, up by 3 basis points from the third quarter. |
• | Wealth management revenues totaled $9.3 million for the fourth quarter, down by $332 thousand, or 3%, from the preceding quarter, largely due to a decline of $216 thousand in transaction-based revenues. Wealth management assets under administration amounted to $6.1 billion at December 31, 2016, up by $6 million on a linked quarter basis. Managed assets continue to represent over 90% of total wealth management assets at December 31, 2016. |
• | Mortgage banking revenues totaled $4.5 million for the fourth quarter, up by $807 thousand, or 22%, from the preceding quarter, reflecting both higher volume and yields on loans sold to the secondary market. Residential mortgage loans sold to the secondary market amounted to $200 million in the fourth quarter, compared to $164 million in the preceding quarter. |
• | Loan related derivative income amounted to $912 thousand in the fourth quarter, down by $266 thousand from the preceding quarter, reflecting a lower volume of commercial borrower interest rate swap transactions. |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||||||||
(Unaudited; Dollars in thousands) | |||||||||||||||
Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | |||||||||||
Assets: | |||||||||||||||
Cash and due from banks | $106,185 | $126,752 | $116,658 | $89,966 | $93,222 | ||||||||||
Short-term investments | 1,612 | 2,420 | 3,255 | 4,931 | 4,409 | ||||||||||
Mortgage loans held for sale | 29,434 | 45,162 | 38,554 | 22,895 | 38,554 | ||||||||||
Securities: | |||||||||||||||
Available for sale, at fair value | 739,912 | 564,256 | 401,749 | 411,352 | 375,044 | ||||||||||
Held to maturity, at amortized cost | 15,633 | 16,848 | 17,917 | 19,040 | 20,023 | ||||||||||
Total securities | 755,545 | 581,104 | 419,666 | 430,392 | 395,067 | ||||||||||
Federal Home Loan Bank stock, at cost | 43,129 | 37,249 | 34,303 | 26,515 | 24,316 | ||||||||||
Loans: | |||||||||||||||
Commercial | 1,771,666 | 1,757,215 | 1,732,220 | 1,698,811 | 1,654,547 | ||||||||||
Residential real estate | 1,122,748 | 1,079,887 | 1,005,036 | 1,004,349 | 1,013,555 | ||||||||||
Consumer | 339,957 | 344,253 | 343,628 | 343,833 | 345,025 | ||||||||||
Total loans | 3,234,371 | 3,181,355 | 3,080,884 | 3,046,993 | 3,013,127 | ||||||||||
Less allowance for loan losses | 26,004 | 25,649 | 25,826 | 26,137 | 27,069 | ||||||||||
Net loans | 3,208,367 | 3,155,706 | 3,055,058 | 3,020,856 | 2,986,058 | ||||||||||
Premises and equipment, net | 29,020 | 29,433 | 29,590 | 29,882 | 29,593 | ||||||||||
Investment in bank-owned life insurance | 71,105 | 70,557 | 65,036 | 66,000 | 65,501 | ||||||||||
Goodwill | 64,059 | 64,059 | 64,059 | 64,059 | 64,059 | ||||||||||
Identifiable intangible assets, net | 10,175 | 10,493 | 10,814 | 11,137 | 11,460 | ||||||||||
Other assets | 62,484 | 81,099 | 80,088 | 71,577 | 59,365 | ||||||||||
Total assets | $4,381,115 | $4,204,034 | $3,917,081 | $3,838,210 | $3,771,604 | ||||||||||
Liabilities: | |||||||||||||||
Deposits: | |||||||||||||||
Demand deposits | $585,960 | $566,027 | $512,307 | $539,119 | $537,298 | ||||||||||
NOW accounts | 427,707 | 404,827 | 414,532 | 394,873 | 412,602 | ||||||||||
Money market accounts | 730,075 | 794,905 | 675,896 | 763,565 | 823,490 | ||||||||||
Savings accounts | 358,397 | 357,966 | 342,579 | 331,800 | 326,967 | ||||||||||
Time deposits | 961,613 | 913,649 | 844,036 | 850,294 | 833,898 | ||||||||||
Total deposits | 3,063,752 | 3,037,374 | 2,789,350 | 2,879,651 | 2,934,255 | ||||||||||
Federal Home Loan Bank advances | 848,930 | 671,615 | 640,010 | 487,189 | 378,973 | ||||||||||
Junior subordinated debentures | 22,681 | 22,681 | 22,681 | 22,681 | 22,681 | ||||||||||
Other liabilities | 54,948 | 77,037 | 76,708 | 67,409 | 60,307 | ||||||||||
Total liabilities | 3,990,311 | 3,808,707 | 3,528,749 | 3,456,930 | 3,396,216 | ||||||||||
Shareholders’ Equity: | |||||||||||||||
Common stock | 1,073 | 1,069 | 1,068 | 1,064 | 1,064 | ||||||||||
Paid-in capital | 115,123 | 113,290 | 112,314 | 111,641 | 110,949 | ||||||||||
Retained earnings | 294,365 | 288,613 | 282,666 | 277,810 | 273,074 | ||||||||||
Accumulated other comprehensive loss | (19,757 | ) | (7,645 | ) | (7,716 | ) | (9,235 | ) | (9,699 | ) | |||||
Total shareholders’ equity | 390,804 | 395,327 | 388,332 | 381,280 | 375,388 | ||||||||||
Total liabilities and shareholders’ equity | $4,381,115 | $4,204,034 | $3,917,081 | $3,838,210 | $3,771,604 |
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||||||
(Unaudited; Dollars in thousands, except per share amounts) | ||||||||||||||||||||||
For the Twelve Months Ended | ||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||
Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Dec 31, 2016 | Dec 31, 2015 | ||||||||||||||||
Interest income: | ||||||||||||||||||||||
Interest and fees on loans | $30,738 | $29,633 | $29,122 | $29,998 | $28,511 | $119,491 | $114,229 | |||||||||||||||
Taxable interest on securities | 3,703 | 3,024 | 2,487 | 2,370 | 2,262 | 11,584 | 8,875 | |||||||||||||||
Nontaxable interest on securities | 157 | 218 | 280 | 327 | 352 | 982 | 1,555 | |||||||||||||||
Dividends on Federal Home Loan Bank stock | 362 | 288 | 231 | 210 | 315 | 1,091 | 953 | |||||||||||||||
Other interest income | 95 | 93 | 70 | 64 | 37 | 322 | 138 | |||||||||||||||
Total interest and dividend income | 35,055 | 33,256 | 32,190 | 32,969 | 31,477 | 133,470 | 125,750 | |||||||||||||||
Interest expense: | ||||||||||||||||||||||
Deposits | 3,445 | 3,110 | 2,981 | 2,968 | 3,097 | 12,504 | 13,142 | |||||||||||||||
Federal Home Loan Bank advances | 2,886 | 2,641 | 2,313 | 2,152 | 1,966 | 9,992 | 7,746 | |||||||||||||||
Junior subordinated debentures | 135 | 125 | 119 | 112 | 157 | 491 | 871 | |||||||||||||||
Other interest expense | 1 | 1 | 1 | 2 | 2 | 5 | 9 | |||||||||||||||
Total interest expense | 6,467 | 5,877 | 5,414 | 5,234 | 5,222 | 22,992 | 21,768 | |||||||||||||||
Net interest income | 28,588 | 27,379 | 26,776 | 27,735 | 26,255 | 110,478 | 103,982 | |||||||||||||||
Provision for loan losses | 2,900 | 1,800 | 450 | 500 | 750 | 5,650 | 1,050 | |||||||||||||||
Net interest income after provision for loan losses | 25,688 | 25,579 | 26,326 | 27,235 | 25,505 | 104,828 | 102,932 | |||||||||||||||
Noninterest income: | ||||||||||||||||||||||
Wealth management revenues | 9,291 | 9,623 | 9,481 | 9,174 | 9,167 | 37,569 | 35,416 | |||||||||||||||
Mortgage banking revenues | 4,541 | 3,734 | 2,710 | 2,198 | 2,582 | 13,183 | 9,901 | |||||||||||||||
Service charges on deposit accounts | 945 | 915 | 935 | 907 | 971 | 3,702 | 3,865 | |||||||||||||||
Card interchange fees | 858 | 870 | 860 | 797 | 810 | 3,385 | 3,199 | |||||||||||||||
Income from bank-owned life insurance | 549 | 521 | 1,090 | 499 | 502 | 2,659 | 1,982 | |||||||||||||||
Loan related derivative income | 912 | 1,178 | 508 | 645 | 752 | 3,243 | 2,441 | |||||||||||||||
Equity in losses of unconsolidated subsidiaries | (89 | ) | (88 | ) | (89 | ) | (88 | ) | (69 | ) | (354 | ) | (293 | ) | ||||||||
Other income | 313 | 508 | 419 | 502 | 431 | 1,742 | 1,829 | |||||||||||||||
Total noninterest income | 17,320 | 17,261 | 15,914 | 14,634 | 15,146 | 65,129 | 58,340 | |||||||||||||||
Noninterest expense: | ||||||||||||||||||||||
Salaries and employee benefits | 16,528 | 16,908 | 17,405 | 16,380 | 16,053 | 67,221 | 63,024 | |||||||||||||||
Net occupancy | 1,775 | 1,766 | 1,803 | 1,807 | 1,724 | 7,151 | 7,000 | |||||||||||||||
Equipment | 1,556 | 1,648 | 1,503 | 1,501 | 1,393 | 6,208 | 5,533 | |||||||||||||||
Outsourced services | 1,311 | 1,254 | 1,294 | 1,363 | 1,337 | 5,222 | 5,111 | |||||||||||||||
Legal, audit and professional fees | 597 | 691 | 662 | 629 | 825 | 2,579 | 2,741 | |||||||||||||||
FDIC deposit insurance costs | 390 | 504 | 491 | 493 | 470 | 1,878 | 1,846 | |||||||||||||||
Advertising and promotion | 403 | 370 | 420 | 265 | 325 | 1,458 | 1,526 | |||||||||||||||
Amortization of intangibles | 318 | 321 | 322 | 323 | 333 | 1,284 | 904 | |||||||||||||||
Debt prepayment penalties | — | — | — | 431 | — | 431 | — | |||||||||||||||
Acquisition related expenses | — | — | — | — | 52 | — | 989 | |||||||||||||||
Change in fair value of contingent consideration | — | (939 | ) | 16 | 25 | 41 | (898 | ) | 41 | |||||||||||||
Other expenses | 2,095 | 2,127 | 2,114 | 2,233 | 2,008 | 8,569 | 8,214 | |||||||||||||||
Total noninterest expense | 24,973 | 24,650 | 26,030 | 25,450 | 24,561 | 101,103 | 96,929 | |||||||||||||||
Income before income taxes | 18,035 | 18,190 | 16,210 | 16,419 | 16,090 | 68,854 | 64,343 | |||||||||||||||
Income tax expense | 5,873 | 5,863 | 5,153 | 5,484 | 5,346 | 22,373 | 20,878 | |||||||||||||||
Net income | $12,162 | $12,327 | $11,057 | $10,935 | $10,744 | $46,481 | $43,465 | |||||||||||||||
Net income available to common shareholders: | ||||||||||||||||||||||
Basic | $12,137 | $12,302 | $11,035 | $10,910 | $10,718 | $46,384 | $43,339 | |||||||||||||||
Diluted | $12,137 | $12,302 | $11,035 | $10,910 | $10,718 | $46,384 | $43,339 | |||||||||||||||
Weighted average common shares outstanding: | ||||||||||||||||||||||
Basic | 17,142 | 17,090 | 17,067 | 17,023 | 17,004 | 17,081 | 16,879 | |||||||||||||||
Diluted | 17,245 | 17,203 | 17,194 | 17,157 | 17,167 | 17,208 | 17,067 | |||||||||||||||
Earnings per common share: | ||||||||||||||||||||||
Basic | $0.71 | $0.72 | $0.65 | $0.64 | $0.63 | $2.72 | $2.57 | |||||||||||||||
Diluted | $0.70 | $0.72 | $0.64 | $0.64 | $0.62 | $2.70 | $2.54 | |||||||||||||||
Cash dividends declared per share | $0.37 | $0.37 | $0.36 | $0.36 | $0.34 | $1.46 | $1.36 |
SELECTED FINANCIAL HIGHLIGHTS | |||||||||||||||
(Unaudited; Dollars in thousands, except per share amounts) | |||||||||||||||
Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | |||||||||||
Share and Equity Related Data: | |||||||||||||||
Book value per share | $22.76 | $23.11 | $22.73 | $22.40 | $22.06 | ||||||||||
Tangible book value per share - Non-GAAP (1) | $18.44 | $18.75 | $18.35 | $17.98 | $17.62 | ||||||||||
Market value per share | $56.05 | $40.22 | $37.92 | $37.32 | $39.52 | ||||||||||
Shares issued and outstanding at end of period | 17,171 | 17,107 | 17,081 | 17,024 | 17,020 | ||||||||||
Capital Ratios: | |||||||||||||||
Tier 1 risk-based capital | 11.44% (i) | 11.48 | % | 11.57 | % | 11.56 | % | 11.64 | % | ||||||
Total risk-based capital | 12.26% (i) | 12.31 | % | 12.43 | % | 12.45 | % | 12.58 | % | ||||||
Tier 1 leverage ratio | 8.67% (i) | 8.95 | % | 9.21 | % | 9.31 | % | 9.37 | % | ||||||
Common equity tier 1 | 10.75% (i) | 10.77 | % | 10.84 | % | 10.82 | % | 10.89 | % | ||||||
Equity to assets | 8.92 | % | 9.40 | % | 9.91 | % | 9.93 | % | 9.95 | % | |||||
Tangible equity to tangible assets - Non-GAAP (1) | 7.35 | % | 7.77 | % | 8.16 | % | 8.13 | % | 8.11 | % | |||||
(i) - estimated |
For the Twelve Months Ended | |||||||||||||||
For the Three Months Ended | |||||||||||||||
Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Dec 31, 2016 | Dec 31, 2015 | |||||||||
Performance Ratios: | |||||||||||||||
Net interest margin (FTE) | 2.89 | % | 2.94 | % | 3.05 | % | 3.24 | % | 3.08 | % | 3.02 | % | 3.12 | % | |
Return on average assets | 1.14 | % | 1.21 | % | 1.14 | % | 1.16 | % | 1.16 | % | 1.16 | % | 1.19 | % | |
Return on average tangible assets - Non-GAAP (1) | 1.16 | % | 1.24 | % | 1.17 | % | 1.18 | % | 1.19 | % | 1.19 | % | 1.21 | % | |
Return on average equity | 12.26 | % | 12.57 | % | 11.50 | % | 11.50 | % | 11.52 | % | 11.96 | % | 12.00 | % | |
Return on average tangible equity - Non-GAAP (1) | 15.09 | % | 15.53 | % | 14.28 | % | 14.34 | % | 14.45 | % | 14.82 | % | 14.79 | % |
(1) | See the section labeled “SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures” at the end of this document. |
SELECTED FINANCIAL HIGHLIGHTS | ||||||||||||||||||||||
(Unaudited; Dollars in thousands) | ||||||||||||||||||||||
For the Twelve Months Ended | ||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||
Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Dec 31, 2016 | Dec 31, 2015 | ||||||||||||||||
Wealth Management Results | ||||||||||||||||||||||
Wealth Management Revenues: | ||||||||||||||||||||||
Trust and investment management fees | $8,283 | $8,358 | $8,195 | $8,065 | $8,001 | $32,901 | $30,149 | |||||||||||||||
Mutual fund fees | 771 | 812 | 812 | 843 | 952 | 3,238 | 4,009 | |||||||||||||||
Asset-based revenues | 9,054 | 9,170 | 9,007 | 8,908 | 8,953 | 36,139 | 34,158 | |||||||||||||||
Transaction-based revenues | 237 | 453 | 474 | 266 | 214 | 1,430 | 1,258 | |||||||||||||||
Total wealth management revenues | $9,291 | $9,623 | $9,481 | $9,174 | $9,167 | $37,569 | $35,416 | |||||||||||||||
Assets Under Administration: | ||||||||||||||||||||||
Balance at beginning of period | $6,056,859 | $5,905,019 | $5,878,967 | $5,844,636 | $5,714,201 | $5,844,636 | $5,069,966 | |||||||||||||||
Acquisition of Halsey Associates, Inc. | — | — | — | — | — | — | 839,994 | |||||||||||||||
Net investment appreciation (depreciation) & income | (8,506 | ) | 192,518 | 71,447 | 22,389 | 153,953 | 277,848 | (95,228 | ) | |||||||||||||
Net client asset flows | 14,940 | (40,678 | ) | (45,395 | ) | 11,942 | (23,518 | ) | (59,191 | ) | 29,904 | |||||||||||
Balance at end of period | $6,063,293 | $6,056,859 | $5,905,019 | $5,878,967 | $5,844,636 | $6,063,293 | $5,844,636 | |||||||||||||||
Mortgage Banking Results | ||||||||||||||||||||||
Mortgage Banking Revenues: | ||||||||||||||||||||||
Gains & commissions on loan sales, net | $4,455 | $3,744 | $2,804 | $2,134 | $2,528 | $13,137 | $9,825 | |||||||||||||||
Residential mortgage servicing fee income, net | 86 | (10 | ) | (94 | ) | 64 | 54 | 46 | 76 | |||||||||||||
Total mortgage banking revenues | $4,541 | $3,734 | $2,710 | $2,198 | $2,582 | $13,183 | $9,901 | |||||||||||||||
Residential Mortgage Loan Originations: | ||||||||||||||||||||||
Originations for retention in portfolio | $72,533 | $90,308 | $54,080 | $47,545 | $38,080 | $264,466 | $234,852 | |||||||||||||||
Originations for sale to secondary market (1) | 185,626 | 170,673 | 154,043 | 90,458 | 134,125 | $600,800 | 523,834 | |||||||||||||||
Total mortgage loan originations | $258,159 | $260,981 | $208,123 | $138,003 | $172,205 | $865,266 | $758,686 | |||||||||||||||
Residential Mortgage Loans Sold: | ||||||||||||||||||||||
Sold with servicing rights retained | $48,545 | $44,611 | $45,804 | $26,454 | $44,493 | $165,414 | $162,224 | |||||||||||||||
Sold with servicing rights released (1) | 151,506 | 119,572 | 93,239 | 79,507 | 82,906 | $443,824 | 368,676 | |||||||||||||||
Total mortgage loans sold | $200,051 | $164,183 | $139,043 | $105,961 | $127,399 | $609,238 | $530,900 |
(1) | Also includes loans originated in a broker capacity. |
END OF PERIOD LOAN AND DEPOSIT COMPOSITION | |||||||||||||||
(Unaudited; Dollars in thousands) | |||||||||||||||
Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | |||||||||||
Commercial: | |||||||||||||||
Mortgages | $1,074,186 | $1,086,175 | $1,074,747 | $976,931 | $931,953 | ||||||||||
Construction & development | 121,371 | 98,735 | 81,812 | 123,032 | 122,297 | ||||||||||
Commercial & industrial | 576,109 | 572,305 | 575,661 | 598,848 | 600,297 | ||||||||||
Total commercial | 1,771,666 | 1,757,215 | 1,732,220 | 1,698,811 | 1,654,547 | ||||||||||
Residential real estate: | |||||||||||||||
Mortgages | 1,094,824 | 1,052,829 | 978,399 | 980,274 | 984,437 | ||||||||||
Homeowner construction | 27,924 | 27,058 | 26,637 | 24,075 | 29,118 | ||||||||||
Total residential real estate | 1,122,748 | 1,079,887 | 1,005,036 | 1,004,349 | 1,013,555 | ||||||||||
Consumer: | |||||||||||||||
Home equity lines | 264,200 | 265,238 | 260,541 | 258,513 | 255,565 | ||||||||||
Home equity loans | 37,272 | 38,264 | 39,572 | 45,499 | 46,649 | ||||||||||
Other | 38,485 | 40,751 | 43,515 | 39,821 | 42,811 | ||||||||||
Total consumer | 339,957 | 344,253 | 343,628 | 343,833 | 345,025 | ||||||||||
Total loans | $3,234,371 | $3,181,355 | $3,080,884 | $3,046,993 | $3,013,127 |
December 31, 2016 | December 31, 2015 | ||||||||||
Balance | % of Total | Balance | % of Total | ||||||||
Commercial Real Estate Loans by Property Location: | |||||||||||
Rhode Island, Connecticut, Massachusetts | $1,105,539 | 92.5 | % | $959,883 | 91.0 | % | |||||
New York, New Jersey, Pennsylvania | 77,038 | 6.4 | % | 80,989 | 7.7 | % | |||||
New Hampshire | 12,980 | 1.1 | % | 13,377 | 1.3 | % | |||||
Total commercial real estate loans (1) | $1,195,557 | 100.0 | % | $1,054,249 | 100.0 | % | |||||
Residential Mortgages by Property Location: | |||||||||||
Rhode Island, Connecticut, Massachusetts | $1,106,366 | 98.6 | % | $995,743 | 98.2 | % | |||||
New Hampshire, Vermont, Maine | 11,445 | 1.0 | % | 10,186 | 1.0 | % | |||||
New York, Virginia, New Jersey, Maryland, Pennsylvania | 2,648 | 0.2 | % | 4,163 | 0.4 | % | |||||
Ohio | 997 | 0.1 | % | 1,557 | 0.2 | % | |||||
Other | 1,292 | 0.1 | % | 1,906 | 0.2 | % | |||||
Total residential mortgages | $1,122,748 | 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. |
Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | |||||||||||
Deposits: | |||||||||||||||
Non-interest bearing demand deposits | $521,165 | $520,860 | $476,848 | $474,477 | $475,398 | ||||||||||
Interest-bearing demand deposits | 64,795 | 45,167 | 35,459 | 64,642 | 61,900 | ||||||||||
NOW accounts | 427,707 | 404,827 | 414,532 | 394,873 | 412,602 | ||||||||||
Money market accounts | 730,075 | 794,905 | 675,896 | 763,565 | 823,490 | ||||||||||
Savings accounts | 358,397 | 357,966 | 342,579 | 331,800 | 326,967 | ||||||||||
Time deposits (in-market) | 549,376 | 554,669 | 549,935 | 540,815 | 531,419 | ||||||||||
Wholesale brokered time deposits | 412,237 | 358,980 | 294,101 | 309,479 | 302,479 | ||||||||||
Total deposits | $3,063,752 | $3,037,374 | $2,789,350 | $2,879,651 | $2,934,255 |
CREDIT & ASSET QUALITY DATA | |||||||||||||||
(Unaudited; Dollars in thousands) | |||||||||||||||
Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | |||||||||||
Asset Quality Ratios: | |||||||||||||||
Nonperforming assets to total assets | 0.53 | % | 0.59 | % | 0.48 | % | 0.49 | % | 0.58 | % | |||||
Nonaccrual loans to total loans | 0.68 | % | 0.75 | % | 0.56 | % | 0.57 | % | 0.70 | % | |||||
Allowance for loan losses to nonaccrual loans | 117.89 | % | 107.09 | % | 149.73 | % | 150.00 | % | 128.61 | % | |||||
Allowance for loan losses to total loans | 0.80 | % | 0.81 | % | 0.84 | % | 0.86 | % | 0.90 | % | |||||
Nonperforming Assets: | |||||||||||||||
Commercial mortgages | $7,811 | $10,357 | $4,054 | $4,054 | $5,711 | ||||||||||
Commercial construction & development | — | — | — | — | — | ||||||||||
Commercial & industrial | 1,337 | 1,744 | 1,204 | 2,659 | 3,018 | ||||||||||
Residential real estate mortgages | 11,736 | 10,140 | 10,409 | 9,367 | 10,666 | ||||||||||
Consumer | 1,174 | 1,709 | 1,581 | 1,345 | 1,652 | ||||||||||
Total nonaccrual loans | 22,058 | 23,950 | 17,248 | 17,425 | 21,047 | ||||||||||
Other real estate owned | 1,075 | 1,045 | 1,515 | 1,326 | 716 | ||||||||||
Total nonperforming assets | $23,133 | $24,995 | $18,763 | $18,751 | $21,763 | ||||||||||
Past Due Loans: | |||||||||||||||
Commercial mortgages | $8,708 | $10,352 | $4,062 | $4,564 | $4,555 | ||||||||||
Commercial & industrial | 1,154 | 1,047 | 1,978 | 2,906 | 462 | ||||||||||
Residential real estate mortgages | 12,226 | 8,291 | 8,893 | 8,703 | 9,286 | ||||||||||
Consumer loans | 2,334 | 1,565 | 2,201 | 2,122 | 3,256 | ||||||||||
Total past due loans | $24,422 | $21,255 | $17,134 | $18,295 | $17,559 | ||||||||||
Total past due loans to total loans | 0.76 | % | 0.67 | % | 0.56 | % | 0.60 | % | 0.58 | % | |||||
Accruing loans 90 days or more past due | $— | $— | $— | $— | $— | ||||||||||
Nonaccrual loans included in past due loans | $18,602 | $18,796 | $13,211 | $14,030 | $13,635 |
For the Twelve Months Ended | ||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||
Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Dec 31, 2016 | Dec 31, 2015 | ||||||||||||||||
Nonaccrual Loan Activity: | ||||||||||||||||||||||
Balance at beginning of period | $23,950 | $17,248 | $17,425 | $21,047 | $16,844 | $21,047 | $15,945 | |||||||||||||||
Additions to nonaccrual status | 2,105 | 9,750 | 2,072 | 1,352 | 7,029 | 15,278 | 14,964 | |||||||||||||||
Loans returned to accruing status | (718 | ) | (592 | ) | — | (206 | ) | (303 | ) | (1,516 | ) | (2,489 | ) | |||||||||
Loans charged-off | (2,622 | ) | (2,055 | ) | (860 | ) | (1,475 | ) | (904 | ) | (7,012 | ) | (2,305 | ) | ||||||||
Loans transferred to other real estate owned | (30 | ) | — | (435 | ) | (610 | ) | (716 | ) | (1,075 | ) | (1,206 | ) | |||||||||
Payments, payoffs and other changes | (627 | ) | (401 | ) | (954 | ) | (2,683 | ) | (903 | ) | (4,664 | ) | (3,862 | ) | ||||||||
Balance at end of period | $22,058 | $23,950 | $17,248 | $17,425 | $21,047 | $22,058 | $21,047 | |||||||||||||||
Allowance for Loan Losses: | ||||||||||||||||||||||
Balance at beginning of period | $25,649 | $25,826 | $26,137 | $27,069 | $27,161 | $27,069 | $28,023 | |||||||||||||||
Provision charged to earnings | 2,900 | 1,800 | 450 | 500 | 750 | 5,650 | 1,050 | |||||||||||||||
Charge-offs | (2,622 | ) | (2,055 | ) | (860 | ) | (1,475 | ) | (904 | ) | (7,012 | ) | (2,305 | ) | ||||||||
Recoveries | 77 | 78 | 99 | 43 | 62 | 297 | 301 | |||||||||||||||
Balance at end of period | $26,004 | $25,649 | $25,826 | $26,137 | $27,069 | $26,004 | $27,069 | |||||||||||||||
Net Loan Charge-Offs (Recoveries): | ||||||||||||||||||||||
Commercial mortgages | $2,510 | $1,936 | $65 | $1,249 | $405 | $5,760 | $717 | |||||||||||||||
Commercial & industrial | (20 | ) | (43 | ) | 684 | (18 | ) | 217 | 603 | 584 | ||||||||||||
Residential real estate mortgages | 6 | 47 | 2 | 134 | 117 | 189 | 179 | |||||||||||||||
Consumer | 49 | 37 | 10 | 67 | 103 | 163 | 524 | |||||||||||||||
Total | $2,545 | $1,977 | $761 | $1,432 | $842 | $6,715 | $2,004 | |||||||||||||||
Net charge-offs to average loans (annualized) | 0.31 | % | 0.25 | % | 0.10 | % | 0.19 | % | 0.11 | % | 0.21 | % | 0.07 | % |
CONSOLIDATED AVERAGE BALANCE SHEETS | |||||||||||||||||||||||
(Unaudited; Dollars in thousands) | |||||||||||||||||||||||
For the Three Months Ended | December 31, 2016 | September 30, 2016 | December 31, 2015 | ||||||||||||||||||||
Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | |||||||||||||||
Assets: | |||||||||||||||||||||||
Commercial mortgages | $1,086,772 | $9,520 | 3.48 | $1,079,917 | $9,362 | 3.45 | $885,967 | $7,887 | 3.53 | ||||||||||||||
Construction & development | 110,342 | 927 | 3.34 | 86,623 | 712 | 3.27 | 134,243 | 1,004 | 2.97 | ||||||||||||||
Commercial & industrial | 575,983 | 6,927 | 4.78 | 565,170 | 6,382 | 4.49 | 581,584 | 6,520 | 4.45 | ||||||||||||||
Total commercial loans | 1,773,097 | $17,374 | 3.90 | 1,731,710 | $16,456 | 3.78 | 1,601,794 | $15,411 | 3.82 | ||||||||||||||
Residential real estate loans, including loans held for sale | 1,140,492 | 10,652 | 3.72 | 1,080,302 | 10,386 | 3.82 | 1,049,007 | 10,338 | 3.91 | ||||||||||||||
Consumer loans | 341,528 | 3,284 | 3.83 | 341,829 | 3,340 | 3.89 | 344,690 | 3,251 | 3.74 | ||||||||||||||
Total loans | 3,255,117 | 31,310 | 3.83 | 3,153,841 | 30,182 | 3.81 | 2,995,491 | 29,000 | 3.84 | ||||||||||||||
Cash, federal funds sold and short-term investments | 77,092 | 95 | 0.49 | 88,414 | 93 | 0.42 | 72,031 | 37 | 0.20 | ||||||||||||||
FHLBB stock | 39,212 | 362 | 3.67 | 37,933 | 288 | 3.02 | 24,316 | 315 | 5.14 | ||||||||||||||
Taxable debt securities | 636,277 | 3,703 | 2.32 | 497,738 | 3,024 | 2.42 | 341,130 | 2,262 | 2.63 | ||||||||||||||
Nontaxable debt securities | 16,003 | 244 | 6.07 | 22,038 | 336 | 6.07 | 35,799 | 550 | 6.10 | ||||||||||||||
Total securities | 652,280 | 3,947 | 2.41 | 519,776 | 3,360 | 2.57 | 376,929 | 2,812 | 2.96 | ||||||||||||||
Total interest-earning assets | 4,023,701 | 35,714 | 3.53 | 3,799,964 | 33,923 | 3.55 | 3,468,767 | 32,164 | 3.68 | ||||||||||||||
Noninterest-earning assets | 249,182 | 262,724 | 231,674 | ||||||||||||||||||||
Total assets | $4,272,883 | $4,062,688 | $3,700,441 | ||||||||||||||||||||
Liabilities and Shareholders' Equity: | |||||||||||||||||||||||
Interest-bearing demand deposits | $46,668 | $16 | 0.14 | $39,865 | $13 | 0.13 | $42,324 | $11 | 0.10 | ||||||||||||||
NOW accounts | 408,788 | 51 | 0.05 | 402,307 | 51 | 0.05 | 376,185 | 56 | 0.06 | ||||||||||||||
Money market accounts | 761,582 | 574 | 0.30 | 709,549 | 487 | 0.27 | 856,405 | 707 | 0.33 | ||||||||||||||
Savings accounts | 356,837 | 51 | 0.06 | 352,032 | 52 | 0.06 | 310,608 | 47 | 0.06 | ||||||||||||||
Time deposits (in-market) | 552,474 | 1,419 | 1.02 | 552,576 | 1,408 | 1.01 | 533,224 | 1,333 | 0.99 | ||||||||||||||
Wholesale brokered time deposits | 382,798 | 1,334 | 1.39 | 310,740 | 1,099 | 1.41 | 277,681 | 943 | 1.35 | ||||||||||||||
FHLBB advances | 732,269 | 2,886 | 1.57 | 690,843 | 2,641 | 1.52 | 373,652 | 1,966 | 2.09 | ||||||||||||||
Junior subordinated debentures | 22,681 | 135 | 2.37 | 22,681 | 125 | 2.19 | 22,681 | 157 | 2.75 | ||||||||||||||
Other | 40 | 1 | 9.95 | 53 | 1 | 7.51 | 92 | 2 | 8.62 | ||||||||||||||
Total interest-bearing liabilities | 3,264,137 | 6,467 | 0.79 | 3,080,646 | 5,877 | 0.76 | 2,792,852 | 5,222 | 0.74 | ||||||||||||||
Demand deposits | 548,595 | 520,439 | 475,215 | ||||||||||||||||||||
Other liabilities | 63,410 | 69,370 | 59,177 | ||||||||||||||||||||
Shareholders' equity | 396,741 | 392,233 | 373,197 | ||||||||||||||||||||
Total liabilities and shareholders' equity | $4,272,883 | $4,062,688 | $3,700,441 | ||||||||||||||||||||
Net interest income (FTE) | $29,247 | $28,046 | $26,942 | ||||||||||||||||||||
Interest rate spread | 2.74 | 2.79 | 2.94 | ||||||||||||||||||||
Net interest margin | 2.89 | 2.94 | 3.08 |
For the Three Months Ended | Dec 31, 2016 | Sep 30, 2016 | Dec 31, 2015 | ||||||
Commercial loans | $572 | $549 | $489 | ||||||
Nontaxable debt securities | 87 | 118 | 198 | ||||||
Total | $659 | $667 | $687 |
CONSOLIDATED AVERAGE BALANCE SHEETS | |||||||||||||||
(Unaudited; Dollars in thousands) | |||||||||||||||
For the Twelve Months Ended | December 31, 2016 | December 31, 2015 | |||||||||||||
Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | ||||||||||
Assets: | |||||||||||||||
Commercial mortgages | $1,030,289 | $36,089 | 3.50 | $870,241 | $31,281 | 3.59 | |||||||||
Construction & development | 110,770 | 3,732 | 3.37 | 109,198 | 3,340 | 3.06 | |||||||||
Commercial & industrial | 584,307 | 27,398 | 4.69 | 593,799 | 27,507 | 4.63 | |||||||||
Total commercial loans | 1,725,366 | 67,219 | 3.90 | 1,573,238 | 62,128 | 3.95 | |||||||||
Residential real estate loans, including loans held for sale | 1,069,402 | 41,173 | 3.85 | 1,038,836 | 41,083 | 3.95 | |||||||||
Consumer loans | 342,431 | 13,328 | 3.89 | 340,889 | 12,885 | 3.78 | |||||||||
Total loans | 3,137,199 | 121,720 | 3.88 | 2,952,963 | 116,096 | 3.93 | |||||||||
Cash, federal funds sold and short-term investments | 75,997 | 322 | 0.42 | 69,169 | 138 | 0.20 | |||||||||
FHLBB stock | 33,643 | 1,091 | 3.24 | 34,349 | 953 | 2.77 | |||||||||
Taxable debt securities | 472,892 | 11,584 | 2.45 | 325,166 | 8,875 | 2.73 | |||||||||
Nontaxable debt securities | 24,939 | 1,520 | 6.09 | 39,751 | 2,408 | 6.06 | |||||||||
Total securities | 497,831 | 13,104 | 2.63 | 364,917 | 11,283 | 3.09 | |||||||||
Total interest-earning assets | 3,744,670 | 136,237 | 3.64 | 3,421,398 | 128,470 | 3.75 | |||||||||
Noninterest-earning assets | 249,808 | 226,623 | |||||||||||||
Total assets | $3,994,478 | $3,648,021 | |||||||||||||
Liabilities and Shareholders' Equity: | |||||||||||||||
Interest-bearing demand deposits | $45,038 | $49 | 0.11 | $37,168 | $27 | 0.07 | |||||||||
NOW accounts | 400,209 | 212 | 0.05 | 356,713 | 209 | 0.06 | |||||||||
Money market accounts | 741,925 | 2,035 | 0.27 | 824,625 | 3,482 | 0.42 | |||||||||
Savings accounts | 343,943 | 200 | 0.06 | 301,652 | 196 | 0.06 | |||||||||
Time deposits (in-market) | 546,460 | 5,486 | 1.00 | 549,039 | 5,531 | 1.01 | |||||||||
Wholesale brokered time deposits | 323,390 | 4,522 | 1.40 | 284,448 | 3,697 | 1.30 | |||||||||
FHLBB advances | 616,404 | 9,992 | 1.62 | 398,866 | 7,746 | 1.94 | |||||||||
Junior subordinated debentures | 22,681 | 491 | 2.16 | 22,681 | 871 | 3.84 | |||||||||
Other | 60 | 5 | 8.33 | 110 | 9 | 8.18 | |||||||||
Total interest-bearing liabilities | 3,040,110 | 22,992 | 0.76 | 2,775,302 | 21,768 | 0.78 | |||||||||
Demand deposits | 503,806 | 458,369 | |||||||||||||
Other liabilities | 62,021 | 52,152 | |||||||||||||
Shareholders' equity | 388,541 | 362,198 | |||||||||||||
Total liabilities and shareholders' equity | $3,994,478 | $3,648,021 | |||||||||||||
Net interest income (FTE) | $113,245 | $106,702 | |||||||||||||
Interest rate spread | 2.88 | 2.97 | |||||||||||||
Net interest margin | 3.02 | 3.12 |
For the Twelve Months Ended | Dec 31, 2016 | Dec 31, 2015 | ||||
Commercial loans | $2,229 | $1,867 | ||||
Nontaxable debt securities | 538 | 853 | ||||
Total | $2,767 | $2,720 |
SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures | |||||||||||||||
(Unaudited; Dollars in thousands, except per share amounts) | |||||||||||||||
Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | |||||||||||
Tangible Book Value per Share: | |||||||||||||||
Total shareholders' equity, as reported | $390,804 | $395,327 | $388,332 | $381,280 | $375,388 | ||||||||||
Less: | |||||||||||||||
Goodwill | 64,059 | 64,059 | 64,059 | 64,059 | 64,059 | ||||||||||
Identifiable intangible assets, net | 10,175 | 10,493 | 10,814 | 11,137 | 11,460 | ||||||||||
Total tangible shareholders' equity | $316,570 | $320,775 | $313,459 | $306,084 | $299,869 | ||||||||||
Shares outstanding, as reported | 17,171 | 17,107 | 17,081 | 17,024 | 17,020 | ||||||||||
Book value per share - GAAP | $22.76 | $23.11 | $22.73 | $22.40 | $22.06 | ||||||||||
Tangible book value per share - Non-GAAP | $18.44 | $18.75 | $18.35 | $17.98 | $17.62 | ||||||||||
Tangible Equity to Tangible Assets: | |||||||||||||||
Total tangible shareholders' equity | $316,570 | $320,775 | $313,459 | $306,084 | $299,869 | ||||||||||
Total assets, as reported | $4,381,115 | $4,204,034 | $3,917,081 | $3,838,210 | $3,771,604 | ||||||||||
Less: | |||||||||||||||
Goodwill | 64,059 | 64,059 | 64,059 | 64,059 | 64,059 | ||||||||||
Identifiable intangible assets, net | 10,175 | 10,493 | 10,814 | 11,137 | 11,460 | ||||||||||
Total tangible assets | $4,306,881 | $4,129,482 | $3,842,208 | $3,763,014 | $3,696,085 | ||||||||||
Equity to assets - GAAP | 8.92 | % | 9.40 | % | 9.91 | % | 9.93 | % | 9.95 | % | |||||
Tangible equity to tangible assets - Non-GAAP | 7.35 | % | 7.77 | % | 8.16 | % | 8.13 | % | 8.11 | % |
For the Three Months Ended | For the Twelve Months Ended | |||||||||||||||||||||
Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Dec 31, 2016 | Dec 31, 2015 | ||||||||||||||||
Return on Average Tangible Assets: | ||||||||||||||||||||||
Net income, as reported | $12,162 | $12,327 | $11,057 | $10,935 | $10,744 | $46,481 | $43,465 | |||||||||||||||
Total average assets, as reported | $4,272,883 | $4,062,688 | $3,869,508 | $3,769,025 | $3,700,441 | $3,994,478 | $3,648,021 | |||||||||||||||
Less average balances of: | ||||||||||||||||||||||
Goodwill | 64,059 | 64,059 | 64,059 | 64,059 | 64,194 | 64,059 | 60,657 | |||||||||||||||
Identifiable intangible assets, net | 10,330 | 10,650 | 10,972 | 11,294 | 11,616 | 10,810 | 7,625 | |||||||||||||||
Total average tangible assets | $4,198,494 | $3,987,979 | $3,794,477 | $3,693,672 | $3,624,631 | $3,919,609 | $3,579,739 | |||||||||||||||
Return on average assets - GAAP | 1.14 | % | 1.21 | % | 1.14 | % | 1.16 | % | 1.16 | % | 1.16 | % | 1.19 | % | ||||||||
Return on average tangible assets - Non-GAAP | 1.16 | % | 1.24 | % | 1.17 | % | 1.18 | % | 1.19 | % | 1.19 | % | 1.21 | % | ||||||||
Return on Average Tangible Equity: | ||||||||||||||||||||||
Net income, as reported | $12,162 | $12,327 | $11,057 | $10,935 | $10,744 | $46,481 | $43,465 | |||||||||||||||
Total average equity, as reported | $396,741 | $392,233 | $384,717 | $380,342 | $373,197 | $388,541 | $362,198 | |||||||||||||||
Less average balances of: | ||||||||||||||||||||||
Goodwill | 64,059 | 64,059 | 64,059 | 64,059 | 64,194 | 64,059 | 60,657 | |||||||||||||||
Identifiable intangible assets, net | 10,330 | 10,650 | 10,972 | 11,294 | 11,616 | 10,810 | 7,625 | |||||||||||||||
Total average tangible equity | $322,352 | $317,524 | $309,686 | $304,989 | $297,387 | $313,672 | $293,916 | |||||||||||||||
Return on average equity - GAAP | 12.26 | % | 12.57 | % | 11.50 | % | 11.50 | % | 11.52 | % | 11.96 | % | 12.00 | % | ||||||||
Return on average tangible equity - Non-GAAP | 15.09 | % | 15.53 | % | 14.28 | % | 14.34 | % | 14.45 | % | 14.82 | % | 14.79 | % |
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