UNITED STATES |
SECURITIES AND EXCHANGE COMMISSION |
Washington, D.C. 20549 |
WASHINGTON TRUST BANCORP, INC. |
Rhode Island | 001-32991 | 05-0404671 | ||
(State or other jurisdiction of | (Commission File Number) | (IRS Employer Identification No.) | ||
incorporation) |
23 Broad Street | ||||
Westerly, Rhode Island | 02891 | |||
(Address of Principal Executive Offices) | (Zip Code) |
(401) 348-1200 |
(Registrant's telephone number, including area code) |
N/A |
(Former name or address, if changed from last report) |
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)) |
Emerging growth company o |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition |
period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the |
Exchange Act. o |
(d) | Exhibits. | |||
Exhibit No. | Exhibit | |||
Press release dated April 22, 2019* | ||||
*Filed herewith |
WASHINGTON TRUST BANCORP, INC. | ||||
Date: | April 22, 2019 | By: | /s/ Ronald S. Ohsberg | |
Ronald S. Ohsberg | ||||
Senior Executive Vice President, Chief Financial Officer and Treasurer |
• | Profitability ratios remain strong with returns on average equity and average assets of 15.52% and 1.39%, respectively. |
• | Total revenues amounted to $50 million, up by 2% on a linked quarter basis. |
• | Wealth management assets under administration were $6.4 billion at March 31, 2019, up by $439 million, or 7%, from the balance at December 31, 2018, reflecting financial market appreciation during the quarter. |
• | Total loans were up by $58 million, or 2%, from the end of the prior quarter and up by $351 million, or 10%, from a year ago. |
• | Average interest-earning assets increased by $227 million, including increases of $124 million in average investment securities and $97 million in average commercial loans. The yield on interest-earning assets for the first quarter was 4.24%, up by 11 basis points from the preceding quarter. Excluding the impact of income associated with loan payoffs and prepayment penalties, the yield on interest-earning assets was 4.24%, up by 13 basis points from the preceding quarter. The yield benefited from increased market interest rates. |
• | Average interest-bearing liabilities increased by $226 million, including increases of $172 million in average wholesale funding balances (wholesale brokered time deposits and Federal Home Loan Bank advances) and $53 million in average in-market deposits. The cost of interest-bearing liabilities for the first quarter was 1.60%, up by 15 basis points from the preceding quarter. This increase largely reflected higher rates paid on wholesale funding sources and promotional certificates of deposit. |
• | Wealth management revenues were $9.3 million for the first quarter of 2019, up by $240 thousand, or 3%, on a linked quarter basis, reflecting an increase in transaction-based revenues, largely due to tax reporting and preparation fees, which are generally concentrated in the first half of the year. Asset-based revenues were down modestly by $9 thousand, or 0.1%, on a linked quarter basis. While the March 31, 2019 end of period balances of wealth management assets under administration increased from the balance at December 31, 2018, the average balance of wealth management assets for the first quarter of 2019 was down slightly by $5 million, or 0.1%, from the fourth quarter of 2018. |
• | Mortgage banking revenues were $2.6 million for the first quarter of 2019, up by $668 thousand, or 34%, from the preceding quarter. First quarter results benefited from an increase in fair value adjustments on mortgage loan commitments and loans held for sale, as well as a relatively higher sales yield on mortgage loans sold in the secondary market. The increase in the fair value adjustments reflected an increase in the mortgage pipeline and corresponding loan commitment balances as of March 31, 2019. |
• | Loan related derivative income was $724 thousand for the first quarter of 2019, down by $650 thousand from the preceding quarter's above-average level of commercial borrower loan related derivative transaction volume. |
• | Income from bank-owned life insurance amounted to $649 thousand in the first quarter of 2019, up by $77 thousand, from the preceding quarter. Included in the first quarter was $91 thousand gain due to the receipt of tax-exempt life insurance proceeds. |
• | In the fourth quarter of 2018, write-down valuation adjustments on other real estate owned amounting to $833 thousand were recognized and classified in other expenses. There were no such write-downs in the first quarter of 2019. |
• | In the fourth quarter of 2018, a reduction to noninterest expenses of $187 thousand was recognized, resulting from a nontaxable adjustment in the fair value of a contingent consideration liability that was initially recorded upon the completion of a 2015 acquisition. There was no such reduction in the first quarter of 2019. |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||||||
(Unaudited; Dollars in thousands) | |||||||||||||||
Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||||||
Assets: | |||||||||||||||
Cash and due from banks | $88,242 | $89,923 | $72,934 | $132,068 | $85,680 | ||||||||||
Short-term investments | 3,317 | 3,552 | 2,917 | 2,624 | 2,322 | ||||||||||
Mortgage loans held for sale, at fair value | 14,608 | 20,996 | 22,571 | 35,207 | 19,269 | ||||||||||
Securities: | |||||||||||||||
Available for sale debt securities, at fair value | 994,881 | 927,810 | 812,647 | 776,693 | 787,842 | ||||||||||
Held to maturity debt securities, at amortized cost | — | 10,415 | 10,863 | 11,412 | 11,973 | ||||||||||
Total securities | 994,881 | 938,225 | 823,510 | 788,105 | 799,815 | ||||||||||
Federal Home Loan Bank stock, at cost | 48,025 | 46,068 | 44,525 | 46,281 | 41,127 | ||||||||||
Loans: | |||||||||||||||
Total loans | 3,738,469 | 3,680,360 | 3,556,203 | 3,490,230 | 3,387,406 | ||||||||||
Less allowance for loan losses | 27,644 | 27,072 | 26,509 | 26,174 | 25,864 | ||||||||||
Net loans | 3,710,825 | 3,653,288 | 3,529,694 | 3,464,056 | 3,361,542 | ||||||||||
Premises and equipment, net | 29,822 | 29,005 | 28,195 | 28,377 | 28,316 | ||||||||||
Operating lease right-of-use assets | 28,249 | — | — | — | — | ||||||||||
Investment in bank-owned life insurance | 80,786 | 80,463 | 79,891 | 79,319 | 73,782 | ||||||||||
Goodwill | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | ||||||||||
Identifiable intangible assets, net | 7,923 | 8,162 | 8,400 | 8,645 | 8,893 | ||||||||||
Other assets | 84,142 | 77,175 | 94,126 | 88,651 | 81,671 | ||||||||||
Total assets | $5,154,729 | $5,010,766 | $4,770,672 | $4,737,242 | $4,566,326 | ||||||||||
Liabilities: | |||||||||||||||
Deposits: | |||||||||||||||
Noninterest-bearing deposits | $577,319 | $603,216 | $611,829 | $577,656 | $601,478 | ||||||||||
Interest-bearing deposits | 2,926,941 | 2,920,832 | 2,802,519 | 2,743,955 | 2,654,956 | ||||||||||
Total deposits | 3,504,260 | 3,524,048 | 3,414,348 | 3,321,611 | 3,256,434 | ||||||||||
Federal Home Loan Bank advances | 1,056,129 | 950,722 | 828,392 | 901,053 | 808,677 | ||||||||||
Junior subordinated debentures | 22,681 | 22,681 | 22,681 | 22,681 | 22,681 | ||||||||||
Operating lease liabilities | 30,187 | — | — | — | — | ||||||||||
Other liabilities | 71,629 | 65,131 | 77,342 | 70,326 | 65,453 | ||||||||||
Total liabilities | 4,684,886 | 4,562,582 | 4,342,763 | 4,315,671 | 4,153,245 | ||||||||||
Shareholders’ Equity: | |||||||||||||||
Common stock | 1,082 | 1,081 | 1,081 | 1,080 | 1,079 | ||||||||||
Paid-in capital | 120,743 | 119,888 | 119,220 | 118,883 | 118,172 | ||||||||||
Retained earnings | 365,521 | 355,524 | 346,685 | 336,670 | 326,505 | ||||||||||
Accumulated other comprehensive loss | (17,503 | ) | (28,309 | ) | (39,077 | ) | (35,062 | ) | (32,675 | ) | |||||
Total shareholders’ equity | 469,843 | 448,184 | 427,909 | 421,571 | 413,081 | ||||||||||
Total liabilities and shareholders’ equity | $5,154,729 | $5,010,766 | $4,770,672 | $4,737,242 | $4,566,326 |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||
(Unaudited; Dollars and shares in thousands, except per share amounts) | |||||||||||||||
For the Three Months Ended | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||||
Interest income: | |||||||||||||||
Interest and fees on loans | $41,744 | $40,299 | $38,493 | $36,788 | $34,352 | ||||||||||
Interest on mortgage loans held for sale | 180 | 289 | 384 | 313 | 226 | ||||||||||
Taxable interest on debt securities | 7,226 | 5,957 | 5,383 | 5,358 | 5,118 | ||||||||||
Nontaxable interest on debt securities | 9 | 9 | 9 | 20 | 23 | ||||||||||
Dividends on Federal Home Loan Bank stock | 695 | 669 | 634 | 550 | 516 | ||||||||||
Other interest income | 340 | 294 | 261 | 257 | 205 | ||||||||||
Total interest and dividend income | 50,194 | 47,517 | 45,164 | 43,286 | 40,440 | ||||||||||
Interest expense: | |||||||||||||||
Deposits | 8,696 | 7,953 | 6,546 | 5,254 | 4,422 | ||||||||||
Federal Home Loan Bank advances | 6,661 | 5,446 | 4,937 | 4,707 | 3,983 | ||||||||||
Junior subordinated debentures | 253 | 240 | 232 | 214 | 183 | ||||||||||
Total interest expense | 15,610 | 13,639 | 11,715 | 10,175 | 8,588 | ||||||||||
Net interest income | 34,584 | 33,878 | 33,449 | 33,111 | 31,852 | ||||||||||
Provision for loan losses | 650 | 800 | 350 | 400 | — | ||||||||||
Net interest income after provision for loan losses | 33,934 | 33,078 | 33,099 | 32,711 | 31,852 | ||||||||||
Noninterest income: | |||||||||||||||
Wealth management revenues | 9,252 | 9,012 | 9,454 | 9,602 | 10,273 | ||||||||||
Mortgage banking revenues | 2,646 | 1,978 | 2,624 | 2,941 | 2,838 | ||||||||||
Card interchange fees | 997 | 977 | 983 | 961 | 847 | ||||||||||
Service charges on deposit accounts | 875 | 977 | 885 | 903 | 863 | ||||||||||
Loan related derivative income | 724 | 1,374 | 278 | 668 | 141 | ||||||||||
Income from bank-owned life insurance | 649 | 572 | 572 | 537 | 515 | ||||||||||
Other income | 224 | 273 | 419 | 381 | 266 | ||||||||||
Total noninterest income | 15,367 | 15,163 | 15,215 | 15,993 | 15,743 | ||||||||||
Noninterest expense: | |||||||||||||||
Salaries and employee benefits | 17,619 | 16,918 | 17,283 | 17,304 | 17,772 | ||||||||||
Outsourced services | 2,606 | 2,510 | 1,951 | 2,350 | 1,873 | ||||||||||
Net occupancy | 1,998 | 1,946 | 2,013 | 1,930 | 2,002 | ||||||||||
Equipment | 1,011 | 983 | 1,080 | 1,069 | 1,180 | ||||||||||
Legal, audit and professional fees | 534 | 587 | 559 | 555 | 726 | ||||||||||
FDIC deposit insurance costs | 429 | 376 | 410 | 422 | 404 | ||||||||||
Advertising and promotion | 239 | 460 | 440 | 329 | 177 | ||||||||||
Amortization of intangibles | 239 | 239 | 245 | 247 | 248 | ||||||||||
Change in fair value of contingent consideration | — | (187 | ) | — | — | — | |||||||||
Other expenses | 2,289 | 2,850 | 2,081 | 2,082 | 2,748 | ||||||||||
Total noninterest expense | 26,964 | 26,682 | 26,062 | 26,288 | 27,130 | ||||||||||
Income before income taxes | 22,337 | 21,559 | 22,252 | 22,416 | 20,465 | ||||||||||
Income tax expense | 4,842 | 4,523 | 4,741 | 4,742 | 4,254 | ||||||||||
Net income | $17,495 | $17,036 | $17,511 | $17,674 | $16,211 | ||||||||||
Net income available to common shareholders | $17,461 | $17,004 | $17,475 | $17,636 | $16,173 | ||||||||||
Weighted average common shares outstanding: | |||||||||||||||
Basic | 17,304 | 17,297 | 17,283 | 17,272 | 17,234 | ||||||||||
Diluted | 17,401 | 17,385 | 17,382 | 17,387 | 17,345 | ||||||||||
Earnings per common share: | |||||||||||||||
Basic | $1.01 | $0.98 | $1.01 | $1.02 | $0.94 | ||||||||||
Diluted | $1.00 | $0.98 | $1.01 | $1.01 | $0.93 | ||||||||||
Cash dividends declared per share | $0.47 | $0.47 | $0.43 | $0.43 | $0.43 |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||
SELECTED FINANCIAL HIGHLIGHTS | |||||||||||||||
(Unaudited; Dollars and shares in thousands, except per share amounts) | |||||||||||||||
Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||||||
Share and Equity Related Data: | |||||||||||||||
Book value per share | $27.15 | $25.90 | $24.75 | $24.40 | $23.93 | ||||||||||
Tangible book value per share - Non-GAAP (1) | $23.00 | $21.74 | $20.57 | $20.20 | $19.71 | ||||||||||
Market value per share | $48.15 | $47.53 | $55.30 | $58.10 | $53.75 | ||||||||||
Shares issued and outstanding at end of period | 17,305 | 17,302 | 17,290 | 17,278 | 17,262 | ||||||||||
Capital Ratios (2): | |||||||||||||||
Tier 1 risk-based capital | 11.84 | % | 11.81 | % | 12.00 | % | 11.84 | % | 11.78 | % | |||||
Total risk-based capital | 12.59 | % | 12.56 | % | 12.77 | % | 12.61 | % | 12.56 | % | |||||
Tier 1 leverage ratio | 8.69 | % | 8.89 | % | 8.91 | % | 8.87 | % | 8.84 | % | |||||
Common equity tier 1 | 11.25 | % | 11.20 | % | 11.37 | % | 11.20 | % | 11.13 | % | |||||
Balance Sheet Ratios: | |||||||||||||||
Equity to assets | 9.11 | % | 8.94 | % | 8.97 | % | 8.90 | % | 9.05 | % | |||||
Tangible equity to tangible assets - Non-GAAP (1) | 7.83 | % | 7.62 | % | 7.57 | % | 7.48 | % | 7.57 | % | |||||
Loans to deposits (3) | 106.3 | % | 104.3 | % | 104.0 | % | 105.3 | % | 103.8 | % |
For the Three Months Ended | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||
Performance Ratios (4): | ||||||||||
Net interest margin (5) | 2.93 | % | 2.95 | % | 2.99 | % | 3.05 | % | 3.03 | % |
Return on average assets (net income divided by average assets) | 1.39 | % | 1.40 | % | 1.47 | % | 1.53 | % | 1.45 | % |
Return on average tangible assets - Non-GAAP (1) | 1.41 | % | 1.42 | % | 1.49 | % | 1.56 | % | 1.48 | % |
Return on average equity (net income available for common shareholders divided by average equity) | 15.52 | % | 15.61 | % | 16.26 | % | 16.99 | % | 15.96 | % |
Return on average tangible equity - Non-GAAP (1) | 18.43 | % | 18.75 | % | 19.59 | % | 20.58 | % | 19.40 | % |
Efficiency ratio (6) | 54.0 | % | 54.4 | % | 53.6 | % | 53.5 | % | 57.0 | % |
(1) | See the section labeled “SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures” at the end of this document. |
(2) | Estimated for March 31, 2019 and actuals for prior periods. |
(3) | Period-end balances of net loans and mortgage loans held for sale as a percentage of total deposits. |
(4) | Annualized based on the actual number of days in the period. |
(5) | Fully taxable equivalent (FTE) net interest income as a percentage of average-earnings assets. |
(6) | Total noninterest expense as percentage of total revenues (net interest income and noninterest income). |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||
SELECTED FINANCIAL HIGHLIGHTS | |||||||||||||||
(Unaudited; Dollars in thousands) | |||||||||||||||
For the Three Months Ended | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||||
Wealth Management Results | |||||||||||||||
Wealth Management Revenues: | |||||||||||||||
Asset-based revenues | $8,921 | $8,930 | $9,322 | $9,136 | $9,955 | ||||||||||
Transaction-based revenues | 331 | 82 | 132 | 466 | 318 | ||||||||||
Total wealth management revenues | $9,252 | $9,012 | $9,454 | $9,602 | $10,273 | ||||||||||
Assets Under Administration (AUA): | |||||||||||||||
Balance at beginning of period | $5,910,814 | $6,462,340 | $6,220,155 | $6,343,720 | $6,714,637 | ||||||||||
Net investment appreciation (depreciation) & income | 520,057 | (534,847 | ) | 232,245 | 133,450 | (32,024 | ) | ||||||||
Net client asset flows | (80,743 | ) | (16,679 | ) | 9,940 | (257,015 | ) | (338,893 | ) | ||||||
Balance at end of period | $6,350,128 | $5,910,814 | $6,462,340 | $6,220,155 | $6,343,720 | ||||||||||
Percentage of AUA that are managed assets | 91% | 90% | 91% | 92% | 92% | ||||||||||
Mortgage Banking Results | |||||||||||||||
Mortgage Banking Revenues: | |||||||||||||||
Gains & commissions on loan sales, net (1) | $2,474 | $1,798 | $2,485 | $2,786 | $2,679 | ||||||||||
Loan servicing fee income, net (2) | 172 | 180 | 139 | 155 | 159 | ||||||||||
Total mortgage banking revenues | $2,646 | $1,978 | $2,624 | $2,941 | $2,838 | ||||||||||
Residential Mortgage Loan Originations: | |||||||||||||||
Originations for retention in portfolio | $51,697 | $58,515 | $80,751 | $128,479 | $67,840 | ||||||||||
Originations for sale to secondary market (3) | 85,826 | 96,792 | 119,832 | 122,693 | 87,720 | ||||||||||
Total mortgage loan originations | $137,523 | $155,307 | $200,583 | $251,172 | $155,560 | ||||||||||
Residential Mortgage Loans Sold: | |||||||||||||||
Sold with servicing rights retained | $9,490 | $16,577 | $24,422 | $24,367 | $33,575 | ||||||||||
Sold with servicing rights released (3) | 82,589 | 81,985 | 107,694 | 81,054 | 63,265 | ||||||||||
Total mortgage loans sold | $92,079 | $98,562 | $132,116 | $105,421 | $96,840 |
(1) | Includes gains on loan sales, commissions on loans originated for others, servicing right gains, fair value adjustments on mortgage loans held for sale, and fair value adjustments and gains on forward loan commitments. |
(2) | Represents loan servicing fee income, net of servicing right amortization and valuation adjustments. |
(3) | Includes loans originated in a broker capacity. |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||
END OF PERIOD LOAN AND DEPOSIT COMPOSITION | |||||||||||||||
(Unaudited; Dollars in thousands) | |||||||||||||||
Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||||||
Loans: | |||||||||||||||
Commercial real estate (1) | $1,463,682 | $1,392,408 | $1,240,350 | $1,218,643 | $1,217,278 | ||||||||||
Commercial & industrial | 610,608 | 620,704 | 656,882 | 632,029 | 603,830 | ||||||||||
Total commercial | 2,074,290 | 2,013,112 | 1,897,232 | 1,850,672 | 1,821,108 | ||||||||||
Residential real estate (2) | 1,359,072 | 1,360,387 | 1,349,340 | 1,327,418 | 1,249,890 | ||||||||||
Home equity | 279,938 | 280,626 | 282,331 | 283,744 | 285,723 | ||||||||||
Other | 25,169 | 26,235 | 27,300 | 28,396 | 30,685 | ||||||||||
Total consumer | 305,107 | 306,861 | 309,631 | 312,140 | 316,408 | ||||||||||
Total loans | $3,738,469 | $3,680,360 | $3,556,203 | $3,490,230 | $3,387,406 |
(1) | Commercial real estate loans consist of commercial mortgages and construction and development loans. Commercial mortgages are loans secured by income producing property. |
(2) | Residential real estate loans consist of mortgage and homeowner construction loans secured by one- to four-family residential properties. |
March 31, 2019 | December 31, 2018 | ||||||||||
Balance | % of Total | Balance | % of Total | ||||||||
Commercial Real Estate Loans by Property Location: | |||||||||||
Rhode Island | $386,990 | 26 | % | $377,249 | 27 | % | |||||
Connecticut | 582,934 | 40 | 570,116 | 41 | |||||||
Massachusetts | 402,276 | 28 | 356,615 | 26 | |||||||
Subtotal | 1,372,200 | 94 | 1,303,980 | 94 | |||||||
All other states | 91,482 | 6 | 88,428 | 6 | |||||||
Total commercial real estate loans | $1,463,682 | 100 | % | $1,392,408 | 100 | % | |||||
Residential Real Estate Loans by Property Location: | |||||||||||
Rhode Island | $349,232 | 26 | % | $352,141 | 26 | % | |||||
Connecticut | 142,472 | 10 | 141,775 | 10 | |||||||
Massachusetts | 850,940 | 63 | 849,435 | 63 | |||||||
Subtotal | 1,342,644 | 99 | 1,343,351 | 99 | |||||||
All other states | 16,428 | 1 | 17,036 | 1 | |||||||
Total residential real estate loans | $1,359,072 | 100 | % | $1,360,387 | 100 | % |
Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||||||
Deposits: | |||||||||||||||
Noninterest-bearing demand deposits | $577,319 | $603,216 | $611,829 | $577,656 | $601,478 | ||||||||||
Interest-bearing demand deposits | 162,598 | 178,733 | 151,322 | 136,640 | 83,249 | ||||||||||
NOW accounts | 471,682 | 466,568 | 468,578 | 481,905 | 470,112 | ||||||||||
Money market accounts | 644,949 | 646,878 | 650,976 | 604,954 | 693,748 | ||||||||||
Savings accounts | 371,248 | 373,545 | 372,425 | 375,983 | 376,608 | ||||||||||
Time deposits (in-market) | 792,470 | 778,105 | 715,635 | 698,286 | 625,965 | ||||||||||
In-market deposits | 3,020,266 | 3,047,045 | 2,970,765 | 2,875,424 | 2,851,160 | ||||||||||
Wholesale brokered time deposits | 483,994 | 477,003 | 443,583 | 446,187 | 405,274 | ||||||||||
Total deposits | $3,504,260 | $3,524,048 | $3,414,348 | $3,321,611 | $3,256,434 |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||
CREDIT & ASSET QUALITY DATA | |||||||||||||||
(Unaudited; Dollars in thousands) | |||||||||||||||
Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||||||
Asset Quality Ratios: | |||||||||||||||
Nonperforming assets to total assets | 0.28 | % | 0.28 | % | 0.29 | % | 0.32 | % | 0.30 | % | |||||
Nonaccrual loans to total loans | 0.33 | % | 0.32 | % | 0.30 | % | 0.34 | % | 0.31 | % | |||||
Total past due loans to total loans | 0.39 | % | 0.37 | % | 0.38 | % | 0.48 | % | 0.57 | % | |||||
Allowance for loan losses to nonaccrual loans | 223.57 | % | 231.25 | % | 245.25 | % | 222.85 | % | 245.83 | % | |||||
Allowance for loan losses to total loans | 0.74 | % | 0.74 | % | 0.75 | % | 0.75 | % | 0.76 | % | |||||
Nonperforming Assets: | |||||||||||||||
Commercial real estate | $926 | $925 | $— | $— | $— | ||||||||||
Commercial & industrial | — | — | 122 | 397 | 397 | ||||||||||
Total commercial | 926 | 925 | 122 | 397 | 397 | ||||||||||
Residential real estate | 10,032 | 9,346 | 9,063 | 10,206 | 9,340 | ||||||||||
Home equity | 1,407 | 1,436 | 1,624 | 1,133 | 771 | ||||||||||
Other consumer | — | — | — | 9 | 13 | ||||||||||
Total consumer | 1,407 | 1,436 | 1,624 | 1,142 | 784 | ||||||||||
Total nonaccrual loans | 12,365 | 11,707 | 10,809 | 11,745 | 10,521 | ||||||||||
Other real estate owned | 2,142 | 2,142 | 2,974 | 3,206 | 3,206 | ||||||||||
Total nonperforming assets | $14,507 | $13,849 | $13,783 | $14,951 | $13,727 | ||||||||||
Past Due Loans (30 days or more past due): | |||||||||||||||
Commercial real estate | $926 | $1,080 | $931 | $— | $— | ||||||||||
Commercial & industrial | 1 | — | 142 | 2,851 | 3,295 | ||||||||||
Total commercial | 927 | 1,080 | 1,073 | 2,851 | 3,295 | ||||||||||
Residential real estate | 10,849 | 10,520 | 9,398 | 11,243 | 11,806 | ||||||||||
Home equity | 2,911 | 1,989 | 2,939 | 2,585 | 4,235 | ||||||||||
Other consumer | 13 | 33 | 109 | 16 | 22 | ||||||||||
Total consumer | 2,924 | 2,022 | 3,048 | 2,601 | 4,257 | ||||||||||
Total past due loans | $14,700 | $13,622 | $13,519 | $16,695 | $19,358 | ||||||||||
Accruing loans 90 days or more past due | $— | $— | $— | $— | $— | ||||||||||
Nonaccrual loans included in past due loans | $8,563 | $8,613 | $6,425 | $8,575 | $7,066 |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||
CREDIT & ASSET QUALITY DATA | |||||||||||||||
(Unaudited; Dollars in thousands) | |||||||||||||||
For the Three Months Ended | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||||
Nonaccrual Loan Activity: | |||||||||||||||
Balance at beginning of period | $11,707 | $10,809 | $11,745 | $10,521 | $15,211 | ||||||||||
Additions to nonaccrual status | 1,924 | 2,918 | 2,179 | 2,457 | 1,210 | ||||||||||
Loans returned to accruing status | (855 | ) | (1,500 | ) | (361 | ) | (475 | ) | (344 | ) | |||||
Loans charged-off | (103 | ) | (298 | ) | (96 | ) | (103 | ) | (690 | ) | |||||
Loans transferred to other real estate owned | — | — | — | — | (3,074 | ) | |||||||||
Payments, payoffs and other changes | (308 | ) | (222 | ) | (2,658 | ) | (655 | ) | (1,792 | ) | |||||
Balance at end of period | $12,365 | $11,707 | $10,809 | $11,745 | $10,521 | ||||||||||
Allowance for Loan Losses: | |||||||||||||||
Balance at beginning of period | $27,072 | $26,509 | $26,174 | $25,864 | $26,488 | ||||||||||
Provision charged to earnings | 650 | 800 | 350 | 400 | — | ||||||||||
Charge-offs | (103 | ) | (298 | ) | (96 | ) | (103 | ) | (690 | ) | |||||
Recoveries | 25 | 61 | 81 | 13 | 66 | ||||||||||
Balance at end of period | $27,644 | $27,072 | $26,509 | $26,174 | $25,864 | ||||||||||
Net Loan Charge-Offs (Recoveries): | |||||||||||||||
Commercial real estate | $— | $— | $— | $— | $602 | ||||||||||
Commercial & industrial | 6 | (13 | ) | (70 | ) | (3 | ) | (23 | ) | ||||||
Total commercial | 6 | (13 | ) | (70 | ) | (3 | ) | 579 | |||||||
Residential real estate | — | 156 | 68 | 5 | — | ||||||||||
Home equity | 48 | 65 | (2 | ) | 73 | 28 | |||||||||
Other consumer | 24 | 29 | 19 | 15 | 17 | ||||||||||
Total consumer | 72 | 94 | 17 | 88 | 45 | ||||||||||
Total | $78 | $237 | $15 | $90 | $624 | ||||||||||
Net charge-offs to average loans (annualized) | 0.01 | % | 0.03 | % | — | % | 0.01 | % | 0.07 | % |
Washington Trust Bancorp, Inc. and Subsidiaries | ||||||||||||||||||||||||||
CONSOLIDATED AVERAGE BALANCE SHEETS (FTE Basis) | ||||||||||||||||||||||||||
(Unaudited; Dollars in thousands) | ||||||||||||||||||||||||||
For the Three Months Ended | March 31, 2019 | December 31, 2018 | Quarter Change | |||||||||||||||||||||||
Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | ||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Cash, federal funds sold and short-term investments | $56,359 | $340 | 2.45 | % | $51,584 | $294 | 2.26 | % | $4,775 | $46 | 0.19 | % | ||||||||||||||
Mortgage loans held for sale | 16,587 | 180 | 4.40 | 24,178 | 289 | 4.74 | (7,591 | ) | (109 | ) | (0.34 | ) | ||||||||||||||
Taxable debt securities | 1,000,911 | 7,226 | 2.93 | 877,186 | 5,957 | 2.69 | 123,725 | 1,269 | 0.24 | |||||||||||||||||
Nontaxable debt securities | 935 | 10 | 4.34 | 935 | 12 | 5.09 | — | (2 | ) | (0.75 | ) | |||||||||||||||
Total securities | 1,001,846 | 7,236 | 2.93 | 878,121 | 5,969 | 2.70 | 123,725 | 1,267 | 0.23 | |||||||||||||||||
FHLB stock | 46,988 | 695 | 6.00 | 44,662 | 669 | 5.94 | 2,326 | 26 | 0.06 | |||||||||||||||||
Commercial real estate | 1,425,225 | 16,879 | 4.80 | 1,309,957 | 15,500 | 4.69 | 115,268 | 1,379 | 0.11 | |||||||||||||||||
Commercial & industrial | 618,364 | 7,544 | 4.95 | 636,156 | 7,732 | 4.82 | (17,792 | ) | (188 | ) | 0.13 | |||||||||||||||
Total commercial | 2,043,589 | 24,423 | 4.85 | 1,946,113 | 23,232 | 4.74 | 97,476 | 1,191 | 0.11 | |||||||||||||||||
Residential real estate | 1,357,835 | 13,765 | 4.11 | 1,348,993 | 13,516 | 3.98 | 8,842 | 249 | 0.13 | |||||||||||||||||
Home equity | 278,581 | 3,564 | 5.19 | 280,085 | 3,553 | 5.03 | (1,504 | ) | 11 | 0.16 | ||||||||||||||||
Other | 25,629 | 316 | 5.00 | 26,679 | 329 | 4.89 | (1,050 | ) | (13 | ) | 0.11 | |||||||||||||||
Total consumer | 304,210 | 3,880 | 5.17 | 306,764 | 3,882 | 5.02 | (2,554 | ) | (2 | ) | 0.15 | |||||||||||||||
Total loans | 3,705,634 | 42,068 | 4.60 | 3,601,870 | 40,630 | 4.48 | 103,764 | 1,438 | 0.12 | |||||||||||||||||
Total interest-earning assets | 4,827,414 | 50,519 | 4.24 | 4,600,415 | 47,851 | 4.13 | 226,999 | 2,668 | 0.11 | |||||||||||||||||
Noninterest-earning assets | 268,689 | 239,743 | 28,946 | |||||||||||||||||||||||
Total assets | $5,096,103 | $4,840,158 | $255,945 | |||||||||||||||||||||||
Liabilities and Shareholders' Equity: | ||||||||||||||||||||||||||
Interest-bearing demand deposits | $165,911 | $686 | 1.68 | % | $148,840 | $636 | 1.70 | % | $17,071 | $50 | (0.02 | )% | ||||||||||||||
NOW accounts | 454,868 | 84 | 0.07 | 455,052 | 207 | 0.18 | (184 | ) | (123 | ) | (0.11 | ) | ||||||||||||||
Money market accounts | 646,250 | 1,609 | 1.01 | 649,535 | 1,449 | 0.89 | (3,285 | ) | 160 | 0.12 | ||||||||||||||||
Savings accounts | 369,219 | 61 | 0.07 | 369,787 | 60 | 0.06 | (568 | ) | 1 | 0.01 | ||||||||||||||||
Time deposits (in-market) | 789,378 | 3,727 | 1.91 | 749,025 | 3,318 | 1.76 | 40,353 | 409 | 0.15 | |||||||||||||||||
Total interest-bearing in-market deposits | 2,425,626 | 6,167 | 1.03 | 2,372,239 | 5,670 | 0.95 | 53,387 | 497 | 0.08 | |||||||||||||||||
Wholesale brokered time deposits | 473,799 | 2,529 | 2.16 | 450,336 | 2,283 | 2.01 | 23,463 | 246 | 0.15 | |||||||||||||||||
Total interest-bearing deposits | 2,899,425 | 8,696 | 1.22 | 2,822,575 | 7,953 | 1.12 | 76,850 | 743 | 0.10 | |||||||||||||||||
FHLB advances | 1,027,285 | 6,661 | 2.63 | 878,250 | 5,446 | 2.46 | 149,035 | 1,215 | 0.17 | |||||||||||||||||
Junior subordinated debentures | 22,681 | 253 | 4.52 | 22,681 | 240 | 4.20 | — | 13 | 0.32 | |||||||||||||||||
Total interest-bearing liabilities | 3,949,391 | 15,610 | 1.60 | 3,723,506 | 13,639 | 1.45 | 225,885 | 1,971 | 0.15 | |||||||||||||||||
Noninterest-bearing demand deposits | 607,033 | 615,392 | (8,359 | ) | ||||||||||||||||||||||
Other liabilities | 83,438 | 69,217 | 14,221 | |||||||||||||||||||||||
Shareholders' equity | 456,241 | 432,043 | 24,198 | |||||||||||||||||||||||
Total liabilities and shareholders' equity | $5,096,103 | $4,840,158 | $255,945 | |||||||||||||||||||||||
Net interest income (FTE) | $34,909 | $34,212 | $697 | |||||||||||||||||||||||
Interest rate spread | 2.64 | % | 2.68 | % | (0.04 | )% | ||||||||||||||||||||
Net interest margin | 2.93 | % | 2.95 | % | (0.02 | )% |
For the Three Months Ended | Mar 31, 2019 | Dec 31, 2018 | Quarter Change | ||||||
Commercial loans | $324 | $331 | ($7 | ) | |||||
Nontaxable debt securities | 1 | 3 | (2 | ) | |||||
Total | $325 | $334 | ($9 | ) |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||
SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures | |||||||||||||||
(Unaudited; Dollars in thousands, except per share amounts) | |||||||||||||||
Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||||||
Tangible Book Value per Share: | |||||||||||||||
Total shareholders' equity, as reported | $469,843 | $448,184 | $427,909 | $421,571 | $413,081 | ||||||||||
Less: | |||||||||||||||
Goodwill | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | ||||||||||
Identifiable intangible assets, net | 7,923 | 8,162 | 8,400 | 8,645 | 8,893 | ||||||||||
Total tangible shareholders' equity | $398,011 | $376,113 | $355,600 | $349,017 | $340,279 | ||||||||||
Shares outstanding, as reported | 17,305 | 17,302 | 17,290 | 17,278 | 17,262 | ||||||||||
Book value per share - GAAP | $27.15 | $25.90 | $24.75 | $24.40 | $23.93 | ||||||||||
Tangible book value per share - Non-GAAP | $23.00 | $21.74 | $20.57 | $20.20 | $19.71 | ||||||||||
Tangible Equity to Tangible Assets: | |||||||||||||||
Total tangible shareholders' equity | $398,011 | $376,113 | $355,600 | $349,017 | $340,279 | ||||||||||
Total assets, as reported | $5,154,729 | $5,010,766 | $4,770,672 | $4,737,242 | $4,566,326 | ||||||||||
Less: | |||||||||||||||
Goodwill | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | ||||||||||
Identifiable intangible assets, net | 7,923 | 8,162 | 8,400 | 8,645 | 8,893 | ||||||||||
Total tangible assets | $5,082,897 | $4,938,695 | $4,698,363 | $4,664,688 | $4,493,524 | ||||||||||
Equity to assets - GAAP | 9.11 | % | 8.94 | % | 8.97 | % | 8.90 | % | 9.05 | % | |||||
Tangible equity to tangible assets - Non-GAAP | 7.83 | % | 7.62 | % | 7.57 | % | 7.48 | % | 7.57 | % |
For the Three Months Ended | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||||
Return on Average Tangible Assets: | |||||||||||||||
Net income, as reported | $17,495 | $17,036 | $17,511 | $17,674 | $16,211 | ||||||||||
Total average assets, as reported | $5,096,103 | $4,840,158 | $4,724,898 | $4,628,816 | $4,529,708 | ||||||||||
Less average balances of: | |||||||||||||||
Goodwill | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | ||||||||||
Identifiable intangible assets, net | 8,040 | 8,278 | 8,519 | 8,766 | 9,014 | ||||||||||
Total average tangible assets | $5,024,154 | $4,767,971 | $4,652,470 | $4,556,141 | $4,456,785 | ||||||||||
Return on average assets - GAAP | 1.39 | % | 1.40 | % | 1.47 | % | 1.53 | % | 1.45 | % | |||||
Return on average tangible assets - Non-GAAP | 1.41 | % | 1.42 | % | 1.49 | % | 1.56 | % | 1.48 | % | |||||
Return on Average Tangible Equity: | |||||||||||||||
Net income available to common shareholders, as reported | $17,461 | $17,004 | $17,475 | $17,636 | $16,173 | ||||||||||
Total average equity, as reported | $456,241 | $432,043 | $426,306 | $416,433 | $410,955 | ||||||||||
Less average balances of: | |||||||||||||||
Goodwill | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | ||||||||||
Identifiable intangible assets, net | 8,040 | 8,278 | 8,519 | 8,766 | 9,014 | ||||||||||
Total average tangible equity | $384,292 | $359,856 | $353,878 | $343,758 | $338,032 | ||||||||||
Return on average equity - GAAP | 15.52 | % | 15.61 | % | 16.26 | % | 16.99 | % | 15.96 | % | |||||
Return on average tangible equity - Non-GAAP | 18.43 | % | 18.75 | % | 19.59 | % | 20.58 | % | 19.40 | % |
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