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 April 24, 2017* | |||
*Filed herewith |
WASHINGTON TRUST BANCORP, INC. | ||||
Date: | April 24, 2017 | By: | /s/ David V. Devault | |
David V. Devault | ||||
Vice Chair, Secretary and Chief Financial Officer |
• | Returns on average equity and average assets were 11.87% and 1.08%, respectively. Comparable amounts for the fourth quarter of 2016 were 12.26% and 1.14%, respectively. |
• | Wealth management revenues amounted to $9.5 million for the first quarter of 2017, up by 2% on a linked quarter basis. Wealth management assets of $6.2 billion reached an all-time high for the Corporation at March 31, 2017. |
• | Total loans amounted to $3.2 billion at March 31, 2017, down slightly from the preceding quarter and up by 6% from a year ago. |
• | Deposit balances experienced good growth, rising by 2% in the quarter and have increased by 8% from a year ago. |
• | In March, Washington Trust declared a quarterly dividend of 38 cents per share, a 1 cent per share increase over the preceding quarter; representing the seventh consecutive year of dividend increases. |
• | Average interest-earning assets increased by $112 million from the preceding quarter, due to an increase in the average balance of investment securities, which was largely due to portfolio purchases during the fourth quarter of 2016. The yield on interest-earning assets was 3.56%, up by 3 basis points from the preceding quarter. Excluding the impact of loan prepayment fee income in each period, the yield on interest-earning assets was 3.54% for the first quarter of 2017, compared to 3.45% in the preceding quarter, due in part to the increase in the Federal Reserve target interest rate in December 2016. |
• | Average interest-bearing liabilities increased by $132 million from the fourth quarter, reflecting increases of $114 million in the average balance of wholesale funding balances (FHLBB advances and wholesale brokered time deposits). The cost of interest-bearing funds was 0.83%, up by 4 basis points from the preceding quarter. |
• | Wealth management revenues totaled $9.5 million for the first quarter, up by $186 thousand, or 2%, on a linked quarter basis, driven by an increase of $193 thousand in asset-based revenues. Wealth management assets under administration amounted to $6.2 billion at March 31, 2017, up by $180 million on a linked quarter basis, reflecting financial market appreciation in the first quarter of 2017. Managed assets represented 93% of total wealth management assets at March 31, 2017. |
• | Mortgage banking revenues totaled $2.3 million for the first quarter, down by $2.2 million, or 48%, from the very strong results in the fourth quarter of 2016. These results reflect a decrease in the volume of residential mortgage loans sold and a lower overall yield on sales in the secondary market. Residential mortgage loans sold to the secondary market amounted to $107 million in the first quarter, compared to $200 million in the preceding quarter. |
• | Loan related derivative income amounted to $148 thousand in the first quarter, down by $764 thousand from the preceding quarter. The number of commercial borrower loan related derivative transactions occurring in the quarter were relatively modest compared to activity in recent quarters. |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||||||||
(Unaudited; Dollars in thousands) | |||||||||||||||
Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | |||||||||||
Assets: | |||||||||||||||
Cash and due from banks | $111,941 | $106,185 | $126,752 | $116,658 | $89,966 | ||||||||||
Short-term investments | 2,039 | 1,612 | 2,420 | 3,255 | 4,931 | ||||||||||
Mortgage loans held for sale | 25,414 | 29,434 | 45,162 | 38,554 | 22,895 | ||||||||||
Securities: | |||||||||||||||
Available for sale, at fair value | 754,720 | 739,912 | 564,256 | 401,749 | 411,352 | ||||||||||
Held to maturity, at amortized cost | 14,721 | 15,633 | 16,848 | 17,917 | 19,040 | ||||||||||
Total securities | 769,441 | 755,545 | 581,104 | 419,666 | 430,392 | ||||||||||
Federal Home Loan Bank stock, at cost | 43,714 | 43,129 | 37,249 | 34,303 | 26,515 | ||||||||||
Loans: | |||||||||||||||
Commercial | 1,762,499 | 1,771,666 | 1,757,215 | 1,732,220 | 1,698,811 | ||||||||||
Residential real estate | 1,131,210 | 1,122,748 | 1,079,887 | 1,005,036 | 1,004,349 | ||||||||||
Consumer | 331,151 | 339,957 | 344,253 | 343,628 | 343,833 | ||||||||||
Total loans | 3,224,860 | 3,234,371 | 3,181,355 | 3,080,884 | 3,046,993 | ||||||||||
Less allowance for loan losses | 26,446 | 26,004 | 25,649 | 25,826 | 26,137 | ||||||||||
Net loans | 3,198,414 | 3,208,367 | 3,155,706 | 3,055,058 | 3,020,856 | ||||||||||
Premises and equipment, net | 28,853 | 29,020 | 29,433 | 29,590 | 29,882 | ||||||||||
Investment in bank-owned life insurance | 71,642 | 71,105 | 70,557 | 65,036 | 66,000 | ||||||||||
Goodwill | 64,059 | 64,059 | 64,059 | 64,059 | 64,059 | ||||||||||
Identifiable intangible assets, net | 9,898 | 10,175 | 10,493 | 10,814 | 11,137 | ||||||||||
Other assets | 63,348 | 62,484 | 81,099 | 80,088 | 71,577 | ||||||||||
Total assets | $4,388,763 | $4,381,115 | $4,204,034 | $3,917,081 | $3,838,210 | ||||||||||
Liabilities: | |||||||||||||||
Deposits: | |||||||||||||||
Demand deposits | $596,974 | $585,960 | $566,027 | $512,307 | $539,119 | ||||||||||
NOW accounts | 454,344 | 427,707 | 404,827 | 414,532 | 394,873 | ||||||||||
Money market accounts | 762,233 | 730,075 | 794,905 | 675,896 | 763,565 | ||||||||||
Savings accounts | 362,281 | 358,397 | 357,966 | 342,579 | 331,800 | ||||||||||
Time deposits | 939,739 | 961,613 | 913,649 | 844,036 | 850,294 | ||||||||||
Total deposits | 3,115,571 | 3,063,752 | 3,037,374 | 2,789,350 | 2,879,651 | ||||||||||
Federal Home Loan Bank advances | 798,741 | 848,930 | 671,615 | 640,010 | 487,189 | ||||||||||
Junior subordinated debentures | 22,681 | 22,681 | 22,681 | 22,681 | 22,681 | ||||||||||
Other liabilities | 53,985 | 54,948 | 77,037 | 76,708 | 67,409 | ||||||||||
Total liabilities | 3,990,978 | 3,990,311 | 3,808,707 | 3,528,749 | 3,456,930 | ||||||||||
Shareholders’ Equity: | |||||||||||||||
Common stock | 1,075 | 1,073 | 1,069 | 1,068 | 1,064 | ||||||||||
Paid-in capital | 116,200 | 115,123 | 113,290 | 112,314 | 111,641 | ||||||||||
Retained earnings | 299,555 | 294,365 | 288,613 | 282,666 | 277,810 | ||||||||||
Accumulated other comprehensive loss | (19,045 | ) | (19,757 | ) | (7,645 | ) | (7,716 | ) | (9,235 | ) | |||||
Total shareholders’ equity | 397,785 | 390,804 | 395,327 | 388,332 | 381,280 | ||||||||||
Total liabilities and shareholders’ equity | $4,388,763 | $4,381,115 | $4,204,034 | $3,917,081 | $3,838,210 |
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||
(Unaudited; Dollars in thousands, except per share amounts) | |||||||||||||||
For the Three Months Ended | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | ||||||||||
Interest income: | |||||||||||||||
Interest and fees on loans | $30,352 | $30,738 | $29,633 | $29,122 | $29,998 | ||||||||||
Taxable interest on securities | 4,709 | 3,703 | 3,024 | 2,487 | 2,370 | ||||||||||
Nontaxable interest on securities | 112 | 157 | 218 | 280 | 327 | ||||||||||
Dividends on Federal Home Loan Bank stock | 387 | 362 | 288 | 231 | 210 | ||||||||||
Other interest income | 104 | 95 | 93 | 70 | 64 | ||||||||||
Total interest and dividend income | 35,664 | 35,055 | 33,256 | 32,190 | 32,969 | ||||||||||
Interest expense: | |||||||||||||||
Deposits | 3,502 | 3,445 | 3,110 | 2,981 | 2,968 | ||||||||||
Federal Home Loan Bank advances | 3,344 | 2,886 | 2,641 | 2,313 | 2,152 | ||||||||||
Junior subordinated debentures | 138 | 135 | 125 | 119 | 112 | ||||||||||
Other interest expense | 1 | 1 | 1 | 1 | 2 | ||||||||||
Total interest expense | 6,985 | 6,467 | 5,877 | 5,414 | 5,234 | ||||||||||
Net interest income | 28,679 | 28,588 | 27,379 | 26,776 | 27,735 | ||||||||||
Provision for loan losses | 400 | 2,900 | 1,800 | 450 | 500 | ||||||||||
Net interest income after provision for loan losses | 28,279 | 25,688 | 25,579 | 26,326 | 27,235 | ||||||||||
Noninterest income: | |||||||||||||||
Wealth management revenues | 9,477 | 9,291 | 9,623 | 9,481 | 9,174 | ||||||||||
Mortgage banking revenues | 2,340 | 4,541 | 3,734 | 2,710 | 2,198 | ||||||||||
Service charges on deposit accounts | 883 | 945 | 915 | 935 | 907 | ||||||||||
Card interchange fees | 802 | 858 | 870 | 860 | 797 | ||||||||||
Income from bank-owned life insurance | 536 | 549 | 521 | 1,090 | 499 | ||||||||||
Loan related derivative income | 148 | 912 | 1,178 | 508 | 645 | ||||||||||
Equity in losses of unconsolidated subsidiaries | (88 | ) | (89 | ) | (88 | ) | (89 | ) | (88 | ) | |||||
Other income | 412 | 313 | 508 | 419 | 502 | ||||||||||
Total noninterest income | 14,510 | 17,320 | 17,261 | 15,914 | 14,634 | ||||||||||
Noninterest expense: | |||||||||||||||
Salaries and employee benefits | 16,795 | 16,528 | 16,908 | 17,405 | 16,380 | ||||||||||
Net occupancy | 1,967 | 1,775 | 1,766 | 1,803 | 1,807 | ||||||||||
Equipment | 1,467 | 1,556 | 1,648 | 1,503 | 1,501 | ||||||||||
Outsourced services | 1,457 | 1,311 | 1,254 | 1,294 | 1,363 | ||||||||||
Legal, audit and professional fees | 616 | 597 | 691 | 662 | 629 | ||||||||||
FDIC deposit insurance costs | 481 | 390 | 504 | 491 | 493 | ||||||||||
Advertising and promotion | 237 | 403 | 370 | 420 | 265 | ||||||||||
Amortization of intangibles | 277 | 318 | 321 | 322 | 323 | ||||||||||
Debt prepayment penalties | — | — | — | — | 431 | ||||||||||
Change in fair value of contingent consideration | (310 | ) | — | (939 | ) | 16 | 25 | ||||||||
Other expenses | 2,299 | 2,095 | 2,127 | 2,114 | 2,233 | ||||||||||
Total noninterest expense | 25,286 | 24,973 | 24,650 | 26,030 | 25,450 | ||||||||||
Income before income taxes | 17,503 | 18,035 | 18,190 | 16,210 | 16,419 | ||||||||||
Income tax expense | 5,721 | 5,873 | 5,863 | 5,153 | 5,484 | ||||||||||
Net income | $11,782 | $12,162 | $12,327 | $11,057 | $10,935 | ||||||||||
Net income available to common shareholders: | |||||||||||||||
Basic | $11,755 | $12,137 | $12,302 | $11,035 | $10,910 | ||||||||||
Diluted | $11,755 | $12,137 | $12,302 | $11,035 | $10,910 | ||||||||||
Weighted average common shares outstanding: | |||||||||||||||
Basic | 17,186 | 17,142 | 17,090 | 17,067 | 17,023 | ||||||||||
Diluted | 17,293 | 17,245 | 17,203 | 17,194 | 17,157 | ||||||||||
Earnings per common share: | |||||||||||||||
Basic | $0.68 | $0.71 | $0.72 | $0.65 | $0.64 | ||||||||||
Diluted | $0.68 | $0.70 | $0.72 | $0.64 | $0.64 | ||||||||||
Cash dividends declared per share | $0.38 | $0.37 | $0.37 | $0.36 | $0.36 |
SELECTED FINANCIAL HIGHLIGHTS | |||||||||||||||
(Unaudited; Dollars in thousands, except per share amounts) | |||||||||||||||
Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | |||||||||||
Share and Equity Related Data: | |||||||||||||||
Book value per share | $23.14 | $22.76 | $23.11 | $22.73 | $22.40 | ||||||||||
Tangible book value per share - Non-GAAP (1) | $18.83 | $18.44 | $18.75 | $18.35 | $17.98 | ||||||||||
Market value per share | $49.30 | $56.05 | $40.22 | $37.92 | $37.32 | ||||||||||
Shares issued and outstanding at end of period | 17,193 | 17,171 | 17,107 | 17,081 | 17,024 | ||||||||||
Capital Ratios: | |||||||||||||||
Tier 1 risk-based capital | 11.54% (i) | 11.44 | % | 11.48 | % | 11.57 | % | 11.56 | % | ||||||
Total risk-based capital | 12.38% (i) | 12.26 | % | 12.31 | % | 12.43 | % | 12.45 | % | ||||||
Tier 1 leverage ratio | 8.58% (i) | 8.67 | % | 8.95 | % | 9.21 | % | 9.31 | % | ||||||
Common equity tier 1 | 10.86% (i) | 10.75 | % | 10.77 | % | 10.84 | % | 10.82 | % | ||||||
Equity to assets | 9.06 | % | 8.92 | % | 9.40 | % | 9.91 | % | 9.93 | % | |||||
Tangible equity to tangible assets - Non-GAAP (1) | 7.51 | % | 7.35 | % | 7.77 | % | 8.16 | % | 8.13 | % | |||||
(i) - estimated |
For the Three Months Ended | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | |||||
Performance Ratios: | ||||||||||
Net interest margin (FTE) | 2.87 | % | 2.89 | % | 2.94 | % | 3.05 | % | 3.24 | % |
Return on average assets | 1.08 | % | 1.14 | % | 1.21 | % | 1.14 | % | 1.16 | % |
Return on average tangible assets - Non-GAAP (1) | 1.10 | % | 1.16 | % | 1.24 | % | 1.17 | % | 1.18 | % |
Return on average equity | 11.87 | % | 12.26 | % | 12.57 | % | 11.50 | % | 11.50 | % |
Return on average tangible equity - Non-GAAP (1) | 14.59 | % | 15.09 | % | 15.53 | % | 14.28 | % | 14.34 | % |
(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 Three Months Ended | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | ||||||||||
Wealth Management Results | |||||||||||||||
Wealth Management Revenues: | |||||||||||||||
Trust and investment management fees | $8,518 | $8,283 | $8,358 | $8,195 | $8,065 | ||||||||||
Mutual fund fees | 729 | 771 | 812 | 812 | 843 | ||||||||||
Asset-based revenues | 9,247 | 9,054 | 9,170 | 9,007 | 8,908 | ||||||||||
Transaction-based revenues | 230 | 237 | 453 | 474 | 266 | ||||||||||
Total wealth management revenues | $9,477 | $9,291 | $9,623 | $9,481 | $9,174 | ||||||||||
Assets Under Administration: | |||||||||||||||
Balance at beginning of period | $6,063,293 | $6,056,859 | $5,905,019 | $5,878,967 | $5,844,636 | ||||||||||
Net investment appreciation (depreciation) & income | 220,423 | (8,506 | ) | 192,518 | 71,447 | 22,389 | |||||||||
Net client asset flows | (40,415 | ) | 14,940 | (40,678 | ) | (45,395 | ) | 11,942 | |||||||
Balance at end of period | $6,243,301 | $6,063,293 | $6,056,859 | $5,905,019 | $5,878,967 | ||||||||||
Mortgage Banking Results | |||||||||||||||
Mortgage Banking Revenues: | |||||||||||||||
Gains & commissions on loan sales, net | $2,268 | $4,455 | $3,744 | $2,804 | $2,134 | ||||||||||
Residential mortgage servicing fee income, net | 72 | 86 | (10 | ) | (94 | ) | 64 | ||||||||
Total mortgage banking revenues | $2,340 | $4,541 | $3,734 | $2,710 | $2,198 | ||||||||||
Residential Mortgage Loan Originations: | |||||||||||||||
Originations for retention in portfolio | $57,907 | $72,533 | $90,308 | $54,080 | $47,545 | ||||||||||
Originations for sale to secondary market (1) | 102,441 | 185,626 | 170,673 | 154,043 | 90,458 | ||||||||||
Total mortgage loan originations | $160,348 | $258,159 | $260,981 | $208,123 | $138,003 | ||||||||||
Residential Mortgage Loans Sold: | |||||||||||||||
Sold with servicing rights retained | $22,567 | $48,545 | $44,611 | $45,804 | $26,454 | ||||||||||
Sold with servicing rights released (1) | 84,345 | 151,506 | 119,572 | 93,239 | 79,507 | ||||||||||
Total mortgage loans sold | $106,912 | $200,051 | $164,183 | $139,043 | $105,961 |
(1) | Also includes loans originated in a broker capacity. |
END OF PERIOD LOAN AND DEPOSIT COMPOSITION | |||||||||||||||
(Unaudited; Dollars in thousands) | |||||||||||||||
Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | |||||||||||
Commercial: | |||||||||||||||
Mortgages | $1,076,648 | $1,074,186 | $1,086,175 | $1,074,747 | $976,931 | ||||||||||
Construction & development | 123,841 | 121,371 | 98,735 | 81,812 | 123,032 | ||||||||||
Commercial & industrial | 562,010 | 576,109 | 572,305 | 575,661 | 598,848 | ||||||||||
Total commercial | 1,762,499 | 1,771,666 | 1,757,215 | 1,732,220 | 1,698,811 | ||||||||||
Residential real estate: | |||||||||||||||
Mortgages | 1,100,435 | 1,094,824 | 1,052,829 | 978,399 | 980,274 | ||||||||||
Homeowner construction | 30,775 | 27,924 | 27,058 | 26,637 | 24,075 | ||||||||||
Total residential real estate | 1,131,210 | 1,122,748 | 1,079,887 | 1,005,036 | 1,004,349 | ||||||||||
Consumer: | |||||||||||||||
Home equity lines | 258,695 | 264,200 | 265,238 | 260,541 | 258,513 | ||||||||||
Home equity loans | 36,050 | 37,272 | 38,264 | 39,572 | 45,499 | ||||||||||
Other | 36,406 | 38,485 | 40,751 | 43,515 | 39,821 | ||||||||||
Total consumer | 331,151 | 339,957 | 344,253 | 343,628 | 343,833 | ||||||||||
Total loans | $3,224,860 | $3,234,371 | $3,181,355 | $3,080,884 | $3,046,993 |
March 31, 2017 | December 31, 2016 | ||||||||||
Balance | % of Total | Balance | % of Total | ||||||||
Commercial Real Estate Loans by Property Location: | |||||||||||
Rhode Island, Connecticut, Massachusetts | $1,110,934 | 92.5 | % | $1,105,539 | 92.5 | % | |||||
New York, New Jersey, Pennsylvania | 76,678 | 6.4 | % | 77,038 | 6.4 | % | |||||
New Hampshire | 12,877 | 1.1 | % | 12,980 | 1.1 | % | |||||
Total commercial real estate loans (1) | $1,200,489 | 100.0 | % | $1,195,557 | 100.0 | % | |||||
Residential Mortgages by Property Location: | |||||||||||
Rhode Island, Connecticut, Massachusetts | $1,115,205 | 98.6 | % | $1,106,366 | 98.6 | % | |||||
New Hampshire, Vermont, Maine | 11,570 | 1.0 | % | 11,445 | 1.0 | % | |||||
New York, Virginia, New Jersey, Maryland, Pennsylvania | 2,228 | 0.2 | % | 2,648 | 0.2 | % | |||||
Ohio | 922 | 0.1 | % | 997 | 0.1 | % | |||||
Other | 1,285 | 0.1 | % | 1,292 | 0.1 | % | |||||
Total residential mortgages | $1,131,210 | 100.0 | % | $1,122,748 | 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. |
Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | |||||||||||
Deposits: | |||||||||||||||
Non-interest bearing demand deposits | $534,792 | $521,165 | $520,860 | $476,848 | $474,477 | ||||||||||
Interest-bearing demand deposits | 62,182 | 64,795 | 45,167 | 35,459 | 64,642 | ||||||||||
NOW accounts | 454,344 | 427,707 | 404,827 | 414,532 | 394,873 | ||||||||||
Money market accounts | 762,233 | 730,075 | 794,905 | 675,896 | 763,565 | ||||||||||
Savings accounts | 362,281 | 358,397 | 357,966 | 342,579 | 331,800 | ||||||||||
Time deposits (in-market) | 557,312 | 549,376 | 554,669 | 549,935 | 540,815 | ||||||||||
Wholesale brokered time deposits | 382,427 | 412,237 | 358,980 | 294,101 | 309,479 | ||||||||||
Total deposits | $3,115,571 | $3,063,752 | $3,037,374 | $2,789,350 | $2,879,651 |
CREDIT & ASSET QUALITY DATA | |||||||||||||||
(Unaudited; Dollars in thousands) | |||||||||||||||
Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | |||||||||||
Asset Quality Ratios: | |||||||||||||||
Nonperforming assets to total assets | 0.54 | % | 0.53 | % | 0.59 | % | 0.48 | % | 0.49 | % | |||||
Nonaccrual loans to total loans | 0.69 | % | 0.68 | % | 0.75 | % | 0.56 | % | 0.57 | % | |||||
Allowance for loan losses to nonaccrual loans | 119.52 | % | 117.89 | % | 107.09 | % | 149.73 | % | 150.00 | % | |||||
Allowance for loan losses to total loans | 0.82 | % | 0.80 | % | 0.81 | % | 0.84 | % | 0.86 | % | |||||
Nonperforming Assets: | |||||||||||||||
Commercial mortgages | $7,809 | $7,811 | $10,357 | $4,054 | $4,054 | ||||||||||
Commercial construction & development | — | — | — | — | — | ||||||||||
Commercial & industrial | 1,129 | 1,337 | 1,744 | 1,204 | 2,659 | ||||||||||
Residential real estate mortgages | 12,253 | 11,736 | 10,140 | 10,409 | 9,367 | ||||||||||
Consumer | 936 | 1,174 | 1,709 | 1,581 | 1,345 | ||||||||||
Total nonaccrual loans | 22,127 | 22,058 | 23,950 | 17,248 | 17,425 | ||||||||||
Other real estate owned | 1,410 | 1,075 | 1,045 | 1,515 | 1,326 | ||||||||||
Total nonperforming assets | $23,537 | $23,133 | $24,995 | $18,763 | $18,751 | ||||||||||
Past Due Loans: | |||||||||||||||
Commercial mortgages | $7,806 | $8,708 | $10,352 | $4,062 | $4,564 | ||||||||||
Commercial & industrial | 1,046 | 1,154 | 1,047 | 1,978 | 2,906 | ||||||||||
Residential real estate mortgages | 10,533 | 12,226 | 8,291 | 8,893 | 8,703 | ||||||||||
Consumer loans | 1,547 | 2,334 | 1,565 | 2,201 | 2,122 | ||||||||||
Total past due loans | $20,932 | $24,422 | $21,255 | $17,134 | $18,295 | ||||||||||
Total past due loans to total loans | 0.65 | % | 0.76 | % | 0.67 | % | 0.56 | % | 0.60 | % | |||||
Accruing loans 90 days or more past due | $— | $— | $— | $— | $— | ||||||||||
Nonaccrual loans included in past due loans | $18,081 | $18,602 | $18,796 | $13,211 | $14,030 |
For the Three Months Ended | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | ||||||||||
Nonaccrual Loan Activity: | |||||||||||||||
Balance at beginning of period | $22,058 | $23,950 | $17,248 | $17,425 | $21,047 | ||||||||||
Additions to nonaccrual status | 2,138 | 2,105 | 9,750 | 2,072 | 1,352 | ||||||||||
Loans returned to accruing status | (547 | ) | (718 | ) | (592 | ) | — | (206 | ) | ||||||
Loans charged-off | (79 | ) | (2,622 | ) | (2,055 | ) | (860 | ) | (1,475 | ) | |||||
Loans transferred to other real estate owned | (478 | ) | (30 | ) | — | (435 | ) | (610 | ) | ||||||
Payments, payoffs and other changes | (965 | ) | (627 | ) | (401 | ) | (954 | ) | (2,683 | ) | |||||
Balance at end of period | $22,127 | $22,058 | $23,950 | $17,248 | $17,425 | ||||||||||
Allowance for Loan Losses: | |||||||||||||||
Balance at beginning of period | $26,004 | $25,649 | $25,826 | $26,137 | $27,069 | ||||||||||
Provision charged to earnings | 400 | 2,900 | 1,800 | 450 | 500 | ||||||||||
Charge-offs | (79 | ) | (2,622 | ) | (2,055 | ) | (860 | ) | (1,475 | ) | |||||
Recoveries | 121 | 77 | 78 | 99 | 43 | ||||||||||
Balance at end of period | $26,446 | $26,004 | $25,649 | $25,826 | $26,137 | ||||||||||
Net Loan Charge-Offs (Recoveries): | |||||||||||||||
Commercial mortgages | $— | $2,510 | $1,936 | $65 | $1,249 | ||||||||||
Commercial & industrial | (105 | ) | (20 | ) | (43 | ) | 684 | (18 | ) | ||||||
Residential real estate mortgages | (4 | ) | 6 | 47 | 2 | 134 | |||||||||
Consumer | 67 | 49 | 37 | 10 | 67 | ||||||||||
Total | ($42 | ) | $2,545 | $1,977 | $761 | $1,432 | |||||||||
Net charge-offs to average loans (annualized) | (0.01 | %) | 0.31 | % | 0.25 | % | 0.10 | % | 0.19 | % |
CONSOLIDATED AVERAGE BALANCE SHEETS | |||||||||||||||||||||||
(Unaudited; Dollars in thousands) | |||||||||||||||||||||||
For the Three Months Ended | March 31, 2017 | December 31, 2016 | March 31, 2016 | ||||||||||||||||||||
Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | |||||||||||||||
Assets: | |||||||||||||||||||||||
Commercial mortgages | $1,079,171 | $9,444 | 3.55 | $1,086,772 | $9,520 | 3.48 | $933,939 | $8,215 | 3.54 | ||||||||||||||
Construction & development | 127,861 | 1,113 | 3.53 | 110,342 | 927 | 3.34 | 129,217 | 1,108 | 3.45 | ||||||||||||||
Commercial & industrial | 573,801 | 6,157 | 4.35 | 575,983 | 6,927 | 4.78 | 604,519 | 7,681 | 5.11 | ||||||||||||||
Total commercial loans | 1,780,833 | $16,714 | 3.81 | 1,773,097 | $17,374 | 3.90 | 1,667,675 | $17,004 | 4.10 | ||||||||||||||
Residential real estate loans, including loans held for sale | 1,152,468 | 10,868 | 3.82 | 1,140,492 | 10,652 | 3.72 | 1,031,260 | 10,155 | 3.96 | ||||||||||||||
Consumer loans | 335,054 | 3,323 | 4.02 | 341,528 | 3,284 | 3.83 | 343,519 | 3,393 | 3.97 | ||||||||||||||
Total loans | 3,268,355 | 30,905 | 3.83 | 3,255,117 | 31,310 | 3.83 | 3,042,454 | 30,552 | 4.04 | ||||||||||||||
Cash, federal funds sold and short-term investments | 56,195 | 104 | 0.75 | 77,092 | 95 | 0.49 | 68,488 | 64 | 0.38 | ||||||||||||||
FHLBB stock | 43,622 | 387 | 3.60 | 39,212 | 362 | 3.67 | 25,597 | 210 | 3.30 | ||||||||||||||
Taxable debt securities | 755,955 | 4,709 | 2.53 | 636,277 | 3,703 | 2.32 | 359,060 | 2,370 | 2.65 | ||||||||||||||
Nontaxable debt securities | 11,521 | 173 | 6.09 | 16,003 | 244 | 6.07 | 33,313 | 507 | 6.12 | ||||||||||||||
Total securities | 767,476 | 4,882 | 2.58 | 652,280 | 3,947 | 2.41 | 392,373 | 2,877 | 2.95 | ||||||||||||||
Total interest-earning assets | 4,135,648 | 36,278 | 3.56 | 4,023,701 | 35,714 | 3.53 | 3,528,912 | 33,703 | 3.84 | ||||||||||||||
Noninterest-earning assets | 229,823 | 249,182 | 240,113 | ||||||||||||||||||||
Total assets | $4,365,471 | $4,272,883 | $3,769,025 | ||||||||||||||||||||
Liabilities and Shareholders' Equity: | |||||||||||||||||||||||
Interest-bearing demand deposits | $56,782 | $15 | 0.11 | $46,668 | $16 | 0.14 | $50,704 | $13 | 0.10 | ||||||||||||||
NOW accounts | 420,622 | 50 | 0.05 | 408,788 | 51 | 0.05 | 386,488 | 56 | 0.06 | ||||||||||||||
Money market accounts | 754,501 | 599 | 0.32 | 761,582 | 574 | 0.30 | 786,633 | 515 | 0.26 | ||||||||||||||
Savings accounts | 357,894 | 51 | 0.06 | 356,837 | 51 | 0.06 | 328,174 | 49 | 0.06 | ||||||||||||||
Time deposits (in-market) | 554,855 | 1,418 | 1.04 | 552,474 | 1,419 | 1.02 | 538,035 | 1,315 | 0.98 | ||||||||||||||
Wholesale brokered time deposits | 397,274 | 1,369 | 1.40 | 382,798 | 1,334 | 1.39 | 296,801 | 1,020 | 1.38 | ||||||||||||||
FHLBB advances | 831,614 | 3,344 | 1.63 | 732,269 | 2,886 | 1.57 | 453,019 | 2,152 | 1.91 | ||||||||||||||
Junior subordinated debentures | 22,681 | 138 | 2.47 | 22,681 | 135 | 2.37 | 22,681 | 112 | 1.99 | ||||||||||||||
Other | 27 | 1 | 15.02 | 40 | 1 | 9.95 | 79 | 2 | 10.18 | ||||||||||||||
Total interest-bearing liabilities | 3,396,250 | 6,985 | 0.83 | 3,264,137 | 6,467 | 0.79 | 2,862,614 | 5,234 | 0.74 | ||||||||||||||
Demand deposits | 527,215 | 548,595 | 471,782 | ||||||||||||||||||||
Other liabilities | 44,889 | 63,410 | 54,287 | ||||||||||||||||||||
Shareholders' equity | 397,117 | 396,741 | 380,342 | ||||||||||||||||||||
Total liabilities and shareholders' equity | $4,365,471 | $4,272,883 | $3,769,025 | ||||||||||||||||||||
Net interest income (FTE) | $29,293 | $29,247 | $28,469 | ||||||||||||||||||||
Interest rate spread | 2.73 | 2.74 | 3.10 | ||||||||||||||||||||
Net interest margin | 2.87 | 2.89 | 3.24 |
For the Three Months Ended | Mar 31, 2017 | Dec 31, 2016 | Mar 31, 2016 | ||||||
Commercial loans | $553 | $572 | $554 | ||||||
Nontaxable debt securities | 61 | 87 | 180 | ||||||
Total | $614 | $659 | $734 |
SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures | |||||||||||||||
(Unaudited; Dollars in thousands, except per share amounts) | |||||||||||||||
Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | |||||||||||
Tangible Book Value per Share: | |||||||||||||||
Total shareholders' equity, as reported | $397,785 | $390,804 | $395,327 | $388,332 | $381,280 | ||||||||||
Less: | |||||||||||||||
Goodwill | 64,059 | 64,059 | 64,059 | 64,059 | 64,059 | ||||||||||
Identifiable intangible assets, net | 9,898 | 10,175 | 10,493 | 10,814 | 11,137 | ||||||||||
Total tangible shareholders' equity | $323,828 | $316,570 | $320,775 | $313,459 | $306,084 | ||||||||||
Shares outstanding, as reported | 17,193 | 17,171 | 17,107 | 17,081 | 17,024 | ||||||||||
Book value per share - GAAP | $23.14 | $22.76 | $23.11 | $22.73 | $22.40 | ||||||||||
Tangible book value per share - Non-GAAP | $18.83 | $18.44 | $18.75 | $18.35 | $17.98 | ||||||||||
Tangible Equity to Tangible Assets: | |||||||||||||||
Total tangible shareholders' equity | $323,828 | $316,570 | $320,775 | $313,459 | $306,084 | ||||||||||
Total assets, as reported | $4,388,763 | $4,381,115 | $4,204,034 | $3,917,081 | $3,838,210 | ||||||||||
Less: | |||||||||||||||
Goodwill | 64,059 | 64,059 | 64,059 | 64,059 | 64,059 | ||||||||||
Identifiable intangible assets, net | 9,898 | 10,175 | 10,493 | 10,814 | 11,137 | ||||||||||
Total tangible assets | $4,314,806 | $4,306,881 | $4,129,482 | $3,842,208 | $3,763,014 | ||||||||||
Equity to assets - GAAP | 9.06 | % | 8.92 | % | 9.40 | % | 9.91 | % | 9.93 | % | |||||
Tangible equity to tangible assets - Non-GAAP | 7.51 | % | 7.35 | % | 7.77 | % | 8.16 | % | 8.13 | % |
For the Three Months Ended | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | ||||||||||
Return on Average Tangible Assets: | |||||||||||||||
Net income, as reported | $11,782 | $12,162 | $12,327 | $11,057 | $10,935 | ||||||||||
Total average assets, as reported | $4,365,471 | $4,272,883 | $4,062,688 | $3,869,508 | $3,769,025 | ||||||||||
Less average balances of: | |||||||||||||||
Goodwill | 64,059 | 64,059 | 64,059 | 64,059 | 64,059 | ||||||||||
Identifiable intangible assets, net | 10,027 | 10,330 | 10,650 | 10,972 | 11,294 | ||||||||||
Total average tangible assets | $4,291,385 | $4,198,494 | $3,987,979 | $3,794,477 | $3,693,672 | ||||||||||
Return on average assets - GAAP | 1.08 | % | 1.14 | % | 1.21 | % | 1.14 | % | 1.16 | % | |||||
Return on average tangible assets - Non-GAAP | 1.10 | % | 1.16 | % | 1.24 | % | 1.17 | % | 1.18 | % | |||||
Return on Average Tangible Equity: | |||||||||||||||
Net income, as reported | $11,782 | $12,162 | $12,327 | $11,057 | $10,935 | ||||||||||
Total average equity, as reported | $397,117 | $396,741 | $392,233 | $384,717 | $380,342 | ||||||||||
Less average balances of: | |||||||||||||||
Goodwill | 64,059 | 64,059 | 64,059 | 64,059 | 64,059 | ||||||||||
Identifiable intangible assets, net | 10,027 | 10,330 | 10,650 | 10,972 | 11,294 | ||||||||||
Total average tangible equity | $323,031 | $322,352 | $317,524 | $309,686 | $304,989 | ||||||||||
Return on average equity - GAAP | 11.87 | % | 12.26 | % | 12.57 | % | 11.50 | % | 11.50 | % | |||||
Return on average tangible equity - Non-GAAP | 14.59 | % | 15.09 | % | 15.53 | % | 14.28 | % | 14.34 | % |
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