UNITED STATES |
SECURITIES AND EXCHANGE COMMISSION |
Washington, D.C. 20549 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||
(Address of principal executive offices) | (Zip Code) |
(Registrant's telephone number, including area code) |
N/A |
(Former name or address, if changed from last report) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Emerging growth company |
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. | ☐ |
(d) | Exhibits. | |||
Exhibit No. | Exhibit | |||
Press release dated July 20, 2020* | ||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||
*Filed herewith |
WASHINGTON TRUST BANCORP, INC. | ||||
Date: | July 20, 2020 | By: | /s/ Ronald S. Ohsberg | |
Ronald S. Ohsberg | ||||
Senior Executive Vice President, Chief Financial Officer and Treasurer |
• | Returns on average equity and average assets for the second quarter were 16.51% and 1.46%, respectively, compared to 9.49% and 0.89%, respectively, in the preceding quarter. |
• | The provision for credit losses was $2.2 million in the second quarter, compared to $7.0 million in the preceding quarter. |
• | Mortgage banking revenues hit an all-time quarterly high, totaling $14.9 million for the second quarter, up by $8.8 million, or 144%, from the preceding quarter. |
• | Residential mortgage loan originations for portfolio or sale amounted to a quarterly record of $426 million in the second quarter of 2020, up by $134 million, or 46%, from the preceding quarter. |
• | Total loans amounted to $4.3 billion at June 30, 2020, up by $197 million, or 5%, from the end of the preceding quarter. Total loans were up by $557 million, or 15%, from a year ago. |
• | Total in-market deposits (total deposits less out-of-market wholesale brokered deposits) amounted to $3.6 billion, up by $299 million, or 9%, from the end of the preceding quarter, and up by $551 million, or 18%, from a year ago. |
• | Average interest-earning assets increased by $357 million, with increases of $261 million in average loans and $74 million in average cash and short-term investments balances. The yield on interest-earning assets for the second quarter was 3.18%, down by 58 basis points from the preceding quarter, reflecting the impact of lower market interest rates. |
• | Growth in average loans included an increase of $138 million in average balances of PPP loans, which are fully guaranteed by the SBA. The yield on PPP loans for the second quarter was 2.65%, which included the net amortization of deferred lender processing fees and deferred labor costs associated with the loan originations. |
• | Average interest-bearing liabilities increased by $208 million, with increases of $115 million in average wholesale funding balances and $94 million in average in-market deposits. Wholesale funding balances consist of wholesale brokered time deposits and borrowings from the Federal Home Loan Bank and the Federal Reserve. The cost of interest-bearing liabilities for the second quarter of 2020 was 1.08%, down by 33 basis points from the preceding quarter, due to lower market interest rates. |
• | Average noninterest-bearing demand deposit balances increased by $134 million from the preceding quarter. |
• | Mortgage banking revenues totaled $14.9 million for the second quarter of 2020, up by $8.8 million, or 144%, from the first quarter of 2020, with increases in both realized and unrealized gains associated with mortgage banking activities. Net realized gains increased on a linked quarter basis due to increases in sales volume and sales yield on loans sold to the secondary market. Mortgage loans sold to the secondary market hit an all-time quarterly high of $305 million in the second quarter of 2020, up by $143 million, or 88%, from the preceding quarter. Net unrealized gains also increased on a linked quarter basis, reflecting growth in the mortgage pipeline and a corresponding increase in the fair value of mortgage loan commitments as of June 30, 2020. |
• | Wealth management revenues amounted to $8.6 million for the second quarter of 2020, down by $84 thousand, or 1%, on a linked quarter basis. This included a decrease in asset-based revenues of $199 thousand, or 2%, correlating to the linked quarter decline in the average balance of wealth management assets under administration ("AUA"). The decrease in asset-based revenues was partially offset by an increase in transaction-based revenues of $115 thousand, or 34%. |
• | Loan related derivative income was $99 thousand in the second quarter of 2020, down by $2.4 million, or 96%, from the preceding quarter, reflecting a lower volume of commercial borrower interest rate swap transactions. |
• | Income from bank-owned life insurance totaled $791 thousand in the second quarter of 2020, up by $227 thousand, or 40%, from the preceding quarter. Included in the second quarter was a $229 thousand non-taxable gain due to the receipt of life insurance proceeds. |
• | In the first quarter of 2020, a contingency reserve of approximately $800 thousand, largely due to a potential loss associated with counterfeit checks drawn on a commercial customer's account, was included in other noninterest expenses. This matter was resolved in the second quarter of 2020 and resulted in a reduction of $170 thousand from the previously established reserve, which was recognized as a reduction of other noninterest expenses in the second quarter of 2020. |
• | Salaries and employee benefits expense, our largest noninterest expense, amounted to $19.5 million, which was essentially flat compared to preceding quarter. Volume-related increases in mortgage commission expense were essentially offset with higher deferred labor (contra-expense) largely associated with PPP loan originations in the second quarter. |
• | Outsourced services expense was down by $216 thousand from the preceding quarter, largely due to lower volume-related third party processing costs associated with customer loan related derivative transactions. |
• | FDIC deposit insurance costs were up by $252 thousand from the preceding quarter, largely due to growth in average assets. |
• | The remaining decline in noninterest expenses reflects modest decreases across a variety of other noninterest expense categories. These categories included net occupancy, employee travel and entertainment and office supplies, which declined due to remote working conditions. Declines in other expense categories such as advertising and promotion and corporate sponsorships were timing-related. |
• | Commercial loans increased by $210 million, or 9%, from March 31, 2020, with a net increase of $197 million in the commercial and industrial portfolio and a net increase of $13 million in the commercial real estate portfolio. Loan growth was due to the origination of PPP loans. As of June 30, 2020, there were 1,690 PPP loans with a carrying value of $212 million included in the commercial and industrial portfolio. |
• | Residential real estate loans decreased by $2 million from March 31, 2020. |
• | The consumer loan portfolio decreased by $11 million from the balance at March 31, 2020. |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||||||
(Unaudited; Dollars in thousands) | |||||||||||||||
Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | |||||||||||
Assets: | |||||||||||||||
Cash and due from banks | $215,601 | $178,678 | $132,193 | $141,768 | $115,904 | ||||||||||
Short-term investments | 7,739 | 6,591 | 6,262 | 4,336 | 3,910 | ||||||||||
Mortgage loans held for sale, at fair value | 43,997 | 49,751 | 27,833 | 44,657 | 39,996 | ||||||||||
Available for sale debt securities, at fair value | 938,446 | 917,392 | 899,490 | 887,020 | 969,168 | ||||||||||
Federal Home Loan Bank stock, at cost | 50,017 | 53,576 | 50,853 | 45,030 | 49,759 | ||||||||||
Loans: | |||||||||||||||
Total loans | 4,287,641 | 4,090,396 | 3,892,999 | 3,778,106 | 3,730,339 | ||||||||||
Less: allowance for credit losses on loans | 41,441 | 39,665 | 27,014 | 26,997 | 27,398 | ||||||||||
Net loans | 4,246,200 | 4,050,731 | 3,865,985 | 3,751,109 | 3,702,941 | ||||||||||
Premises and equipment, net | 28,067 | 28,543 | 28,700 | 29,293 | 29,302 | ||||||||||
Operating lease right-of-use assets | 27,022 | 26,098 | 26,792 | 27,500 | 28,174 | ||||||||||
Investment in bank-owned life insurance | 83,056 | 83,053 | 82,490 | 81,920 | 81,351 | ||||||||||
Goodwill | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | ||||||||||
Identifiable intangible assets, net | 6,759 | 6,988 | 7,218 | 7,448 | 7,684 | ||||||||||
Other assets | 166,147 | 155,669 | 100,934 | 114,888 | 97,574 | ||||||||||
Total assets | $5,876,960 | $5,620,979 | $5,292,659 | $5,198,878 | $5,189,672 | ||||||||||
Liabilities: | |||||||||||||||
Deposits: | |||||||||||||||
Noninterest-bearing deposits | $815,770 | $622,893 | $609,924 | $619,839 | $587,326 | ||||||||||
Interest-bearing deposits | 3,285,666 | 3,083,421 | 2,888,958 | 2,966,314 | 2,917,296 | ||||||||||
Total deposits | 4,101,436 | 3,706,314 | 3,498,882 | 3,586,153 | 3,504,622 | ||||||||||
Federal Home Loan Bank advances | 1,005,051 | 1,198,534 | 1,141,464 | 956,786 | 1,060,960 | ||||||||||
Junior subordinated debentures | 22,681 | 22,681 | 22,681 | 22,681 | 22,681 | ||||||||||
Operating lease liabilities | 29,125 | 28,184 | 28,861 | 29,541 | 30,210 | ||||||||||
Other liabilities | 198,504 | 156,669 | 97,279 | 105,892 | 86,994 | ||||||||||
Total liabilities | 5,356,797 | 5,112,382 | 4,789,167 | 4,701,053 | 4,705,467 | ||||||||||
Shareholders’ Equity: | |||||||||||||||
Common stock | 1,085 | 1,085 | 1,085 | 1,084 | 1,083 | ||||||||||
Paid-in capital | 123,684 | 123,167 | 123,281 | 121,900 | 121,115 | ||||||||||
Retained earnings | 399,386 | 387,243 | 390,363 | 383,765 | 373,873 | ||||||||||
Accumulated other comprehensive income (loss) | (462 | ) | 929 | (11,237 | ) | (8,924 | ) | (11,866 | ) | ||||||
Treasury stock, at cost | (3,530 | ) | (3,827 | ) | — | — | — | ||||||||
Total shareholders’ equity | 520,163 | 508,597 | 503,492 | 497,825 | 484,205 | ||||||||||
Total liabilities and shareholders’ equity | $5,876,960 | $5,620,979 | $5,292,659 | $5,198,878 | $5,189,672 |
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 | For the Six Months Ended | |||||||||||||||||||||
Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Jun 30, 2020 | Jun 30, 2019 | ||||||||||||||||
Interest income: | ||||||||||||||||||||||
Interest and fees on loans | $36,005 | $40,008 | $40,079 | $41,558 | $42,138 | $76,013 | $83,882 | |||||||||||||||
Interest on mortgage loans held for sale | 440 | 285 | 359 | 410 | 288 | 725 | 468 | |||||||||||||||
Taxable interest on debt securities | 5,477 | 5,834 | 5,817 | 6,318 | 7,006 | 11,311 | 14,232 | |||||||||||||||
Nontaxable interest on debt securities | — | — | — | 1 | 8 | — | 17 | |||||||||||||||
Dividends on Federal Home Loan Bank stock | 654 | 640 | 693 | 747 | 720 | 1,294 | 1,415 | |||||||||||||||
Other interest income | 36 | 349 | 435 | 493 | 399 | 385 | 739 | |||||||||||||||
Total interest and dividend income | 42,612 | 47,116 | 47,383 | 49,527 | 50,559 | 89,728 | 100,753 | |||||||||||||||
Interest expense: | ||||||||||||||||||||||
Deposits | 7,112 | 8,536 | 9,144 | 9,792 | 9,469 | 15,648 | 18,165 | |||||||||||||||
Federal Home Loan Bank advances | 4,382 | 5,765 | 6,015 | 6,512 | 6,980 | 10,147 | 13,641 | |||||||||||||||
Junior subordinated debentures | 171 | 213 | 230 | 245 | 252 | 384 | 505 | |||||||||||||||
Other interest expense | 2 | — | — | — | — | 2 | — | |||||||||||||||
Total interest expense | 11,667 | 14,514 | 15,389 | 16,549 | 16,701 | 26,181 | 32,311 | |||||||||||||||
Net interest income | 30,945 | 32,602 | 31,994 | 32,978 | 33,858 | 63,547 | 68,442 | |||||||||||||||
Provision for credit losses | 2,200 | 7,036 | — | 400 | 525 | 9,236 | 1,175 | |||||||||||||||
Net interest income after provision for credit losses | 28,745 | 25,566 | 31,994 | 32,578 | 33,333 | 54,311 | 67,267 | |||||||||||||||
Noninterest income: | ||||||||||||||||||||||
Wealth management revenues | 8,605 | 8,689 | 8,894 | 9,153 | 9,549 | 17,294 | 18,801 | |||||||||||||||
Mortgage banking revenues | 14,851 | 6,096 | 3,669 | 4,840 | 3,640 | 20,947 | 6,286 | |||||||||||||||
Card interchange fees | 1,031 | 947 | 1,100 | 1,099 | 1,018 | 1,978 | 2,015 | |||||||||||||||
Service charges on deposit accounts | 517 | 860 | 941 | 939 | 929 | 1,377 | 1,804 | |||||||||||||||
Loan related derivative income | 99 | 2,455 | 1,116 | 1,407 | 746 | 2,554 | 1,470 | |||||||||||||||
Income from bank-owned life insurance | 791 | 564 | 570 | 569 | 566 | 1,355 | 1,215 | |||||||||||||||
Net realized gains (losses) on securities | — | — | 27 | — | (80 | ) | — | (80 | ) | |||||||||||||
Other income | 426 | 316 | 301 | 335 | 385 | 742 | 609 | |||||||||||||||
Total noninterest income | 26,320 | 19,927 | 16,618 | 18,342 | 16,753 | 46,247 | 32,120 | |||||||||||||||
Noninterest expense: | ||||||||||||||||||||||
Salaries and employee benefits | 19,464 | 19,468 | 18,374 | 18,332 | 18,436 | 38,932 | 36,055 | |||||||||||||||
Outsourced services | 2,784 | 3,000 | 2,752 | 2,722 | 2,518 | 5,784 | 5,124 | |||||||||||||||
Net occupancy | 1,909 | 2,019 | 1,986 | 1,933 | 1,904 | 3,928 | 3,902 | |||||||||||||||
Equipment | 895 | 977 | 996 | 1,046 | 1,028 | 1,872 | 2,039 | |||||||||||||||
Legal, audit and professional fees | 659 | 822 | 692 | 645 | 664 | 1,481 | 1,198 | |||||||||||||||
FDIC deposit insurance costs | 674 | 422 | 109 | (460 | ) | 540 | 1,096 | 969 | ||||||||||||||
Advertising and promotion | 186 | 259 | 402 | 368 | 525 | 445 | 764 | |||||||||||||||
Amortization of intangibles | 230 | 230 | 229 | 236 | 239 | 460 | 478 | |||||||||||||||
Other expenses | 1,677 | 3,256 | 3,215 | 2,048 | 2,297 | 4,933 | 4,586 | |||||||||||||||
Total noninterest expense | 28,478 | 30,453 | 28,755 | 26,870 | 28,151 | 58,931 | 55,115 | |||||||||||||||
Income before income taxes | 26,587 | 15,040 | 19,857 | 24,050 | 21,935 | 41,627 | 44,272 | |||||||||||||||
Income tax expense | 5,547 | 3,139 | 4,321 | 5,236 | 4,662 | 8,686 | 9,504 | |||||||||||||||
Net income | $21,040 | $11,901 | $15,536 | $18,814 | $17,273 | $32,941 | $34,768 | |||||||||||||||
Net income available to common shareholders | $21,000 | $11,869 | $15,502 | $18,778 | $17,238 | $32,869 | $34,699 | |||||||||||||||
Weighted average common shares outstanding: | ||||||||||||||||||||||
Basic | 17,257 | 17,345 | 17,351 | 17,338 | 17,330 | 17,301 | 17,317 | |||||||||||||||
Diluted | 17,292 | 17,441 | 17,436 | 17,414 | 17,405 | 17,377 | 17,403 | |||||||||||||||
Earnings per common share: | ||||||||||||||||||||||
Basic | $1.22 | $0.68 | $0.89 | $1.08 | $0.99 | $1.90 | $2.00 | |||||||||||||||
Diluted | $1.21 | $0.68 | $0.89 | $1.08 | $0.99 | $1.89 | $1.99 | |||||||||||||||
Cash dividends declared per share | $0.51 | $0.51 | $0.51 | $0.51 | $0.51 | $1.02 | $0.98 |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||
SELECTED FINANCIAL HIGHLIGHTS | |||||||||||||||
(Unaudited; Dollars and shares in thousands, except per share amounts) | |||||||||||||||
Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | |||||||||||
Share and Equity Related Data: | |||||||||||||||
Book value per share | $30.14 | $29.48 | $29.00 | $28.71 | $27.93 | ||||||||||
Tangible book value per share - Non-GAAP (1) | $26.04 | $25.37 | $24.90 | $24.60 | $23.80 | ||||||||||
Market value per share | $32.75 | $36.56 | $53.79 | $48.31 | $52.18 | ||||||||||
Shares issued at end of period | 17,363 | 17,363 | 17,363 | 17,338 | 17,336 | ||||||||||
Shares outstanding at end of period | 17,260 | 17,252 | 17,363 | 17,338 | 17,336 | ||||||||||
Capital Ratios (2): | |||||||||||||||
Tier 1 risk-based capital | 11.95 | % | 11.62 | % | 12.23 | % | 12.21 | % | 12.06 | % | |||||
Total risk-based capital | 12.78 | % | 12.42 | % | 12.94 | % | 12.94 | % | 12.80 | % | |||||
Tier 1 leverage ratio | 8.42 | % | 8.77 | % | 9.04 | % | 8.97 | % | 8.76 | % | |||||
Common equity tier 1 | 11.40 | % | 11.08 | % | 11.65 | % | 11.62 | % | 11.46 | % | |||||
Balance Sheet Ratios: | |||||||||||||||
Equity to assets | 8.85 | % | 9.05 | % | 9.51 | % | 9.58 | % | 9.33 | % | |||||
Tangible equity to tangible assets - Non-GAAP (1) | 7.74 | % | 7.89 | % | 8.28 | % | 8.32 | % | 8.06 | % | |||||
Loans to deposits (3) | 104.6 | % | 110.6 | % | 111.3 | % | 105.8 | % | 106.8 | % |
For the Six Months Ended | |||||||||||||||
For the Three Months Ended | |||||||||||||||
Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Jun 30, 2020 | Jun 30, 2019 | |||||||||
Performance Ratios (4): | |||||||||||||||
Net interest margin (5) | 2.31 | % | 2.61 | % | 2.61 | % | 2.72 | % | 2.81 | % | 2.46 | % | 2.87 | % | |
Return on average assets (net income divided by average assets) | 1.46 | % | 0.89 | % | 1.18 | % | 1.44 | % | 1.34 | % | 1.18 | % | 1.37 | % | |
Return on average tangible assets - Non-GAAP (1) | 1.48 | % | 0.90 | % | 1.20 | % | 1.46 | % | 1.36 | % | 1.20 | % | 1.39 | % | |
Return on average equity (net income available for common shareholders divided by average equity) | 16.51 | % | 9.49 | % | 12.24 | % | 15.20 | % | 14.58 | % | 13.03 | % | 15.04 | % | |
Return on average tangible equity - Non-GAAP (1) | 19.15 | % | 11.05 | % | 14.26 | % | 17.79 | % | 17.17 | % | 15.14 | % | 17.78 | % | |
Efficiency ratio (6) | 49.7 | % | 58.0 | % | 59.2 | % | 52.4 | % | 55.6 | % | 53.7 | % | 54.8 | % |
(1) | See the section labeled “SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures” at the end of this document. |
(2) | Estimated for June 30, 2020 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 | For the Six Months Ended | |||||||||||||||||||||
Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Jun 30, 2020 | Jun 30, 2019 | ||||||||||||||||
Wealth Management Results | ||||||||||||||||||||||
Wealth Management Revenues: | ||||||||||||||||||||||
Asset-based revenues | $8,156 | $8,355 | $8,731 | $9,013 | $9,141 | $16,511 | $18,062 | |||||||||||||||
Transaction-based revenues | 449 | 334 | 163 | 140 | 408 | 783 | 739 | |||||||||||||||
Total wealth management revenues | $8,605 | $8,689 | $8,894 | $9,153 | $9,549 | $17,294 | $18,801 | |||||||||||||||
Assets Under Administration (AUA): | ||||||||||||||||||||||
Balance at beginning of period | $5,337,733 | $6,235,801 | $6,126,327 | $6,478,890 | $6,350,128 | $6,235,801 | $5,910,814 | |||||||||||||||
Net investment appreciation (depreciation) & income | 671,602 | (772,735 | ) | 310,766 | 66,514 | 222,489 | (101,133 | ) | 742,546 | |||||||||||||
Net client asset inflows (outflows) | 129,510 | (125,333 | ) | (243,175 | ) | (419,077 | ) | (93,727 | ) | 4,177 | (174,470 | ) | ||||||||||
Other (1) | — | — | 41,883 | — | — | — | — | |||||||||||||||
Balance at end of period | $6,138,845 | $5,337,733 | $6,235,801 | $6,126,327 | $6,478,890 | $6,138,845 | $6,478,890 | |||||||||||||||
Percentage of AUA that are managed assets | 90% | 89% | 90% | 90% | 91% | 90% | 91% | |||||||||||||||
Mortgage Banking Results | ||||||||||||||||||||||
Mortgage Banking Revenues: | ||||||||||||||||||||||
Realized gains on loan sales, net (2) | $10,646 | $3,688 | $4,608 | $4,509 | $2,924 | $14,334 | $4,861 | |||||||||||||||
Unrealized gains (losses), net (3) | 4,415 | 2,325 | (1,025 | ) | 243 | 599 | 6,740 | 1,136 | ||||||||||||||
Loan servicing fee income, net (4) | (210 | ) | 83 | 86 | 88 | 117 | (127 | ) | 289 | |||||||||||||
Total mortgage banking revenues | $14,851 | $6,096 | $3,669 | $4,840 | $3,640 | $20,947 | $6,286 | |||||||||||||||
Residential Mortgage Loan Originations: | ||||||||||||||||||||||
Originations for retention in portfolio | $126,894 | $108,498 | $120,882 | $105,075 | $69,736 | $235,392 | $121,433 | |||||||||||||||
Originations for sale to secondary market (5) | 299,321 | 183,222 | 160,175 | 189,979 | 162,123 | 482,543 | 247,949 | |||||||||||||||
Total mortgage loan originations | $426,215 | $291,720 | $281,057 | $295,054 | $231,859 | $717,935 | $369,382 | |||||||||||||||
Residential Mortgage Loans Sold: | ||||||||||||||||||||||
Sold with servicing rights retained | $246,945 | $44,498 | $42,612 | $25,766 | $18,292 | $291,443 | $27,782 | |||||||||||||||
Sold with servicing rights released (5) | 58,279 | 117,693 | 134,091 | 159,210 | 119,122 | 175,972 | 201,711 | |||||||||||||||
Total mortgage loans sold | $305,224 | $162,191 | $176,703 | $184,976 | $137,414 | $467,415 | $229,493 |
(1) | Represents the classification of certain non-fee generating assets as AUA due to a reporting change in the fourth quarter of 2019. |
(2) | Includes gains on loan sales, commission income on loans originated for others, servicing right gains, and gains (losses) on forward loan commitments. |
(3) | Represents fair value adjustments on mortgage loans held for sale and forward loan commitments. |
(4) | Represents loan servicing fee income, net of servicing right amortization and valuation adjustments. |
(5) | Includes brokered loans (loans originated for others). |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||
END OF PERIOD LOAN AND DEPOSIT COMPOSITION | |||||||||||||||
(Unaudited; Dollars in thousands) | |||||||||||||||
Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | |||||||||||
Loans: | |||||||||||||||
Commercial real estate (1) | $1,630,998 | $1,618,020 | $1,547,572 | $1,517,320 | $1,482,836 | ||||||||||
Commercial & industrial | 852,445 | 655,157 | 585,289 | 566,426 | 583,873 | ||||||||||
Total commercial | 2,483,443 | 2,273,177 | 2,132,861 | 2,083,746 | 2,066,709 | ||||||||||
Residential real estate (2) | 1,508,223 | 1,510,472 | 1,449,090 | 1,378,518 | 1,352,113 | ||||||||||
Home equity | 277,632 | 287,134 | 290,874 | 294,250 | 288,078 | ||||||||||
Other | 18,343 | 19,613 | 20,174 | 21,592 | 23,439 | ||||||||||
Total consumer | 295,975 | 306,747 | 311,048 | 315,842 | 311,517 | ||||||||||
Total loans | $4,287,641 | $4,090,396 | $3,892,999 | $3,778,106 | $3,730,339 |
(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. |
June 30, 2020 | |||||||||||||||
Outstanding Balance | Deferments | ||||||||||||||
Count | Balance | % of Total | Count | Balance | % of Outstanding Balance | ||||||||||
Commercial Real Estate Portfolio Segmentation: | |||||||||||||||
Multi-family dwelling | 141 | $526,009 | 32 | % | 20 | $34,318 | 7 | % | |||||||
Retail | 133 | 327,139 | 20 | 43 | 124,071 | 38 | |||||||||
Office | 76 | 288,671 | 18 | 15 | 74,099 | 26 | |||||||||
Hospitality | 40 | 144,988 | 9 | 31 | 117,665 | 81 | |||||||||
Healthcare | 16 | 120,181 | 7 | 5 | 64,326 | 54 | |||||||||
Industrial and warehouse | 26 | 96,549 | 6 | — | — | — | |||||||||
Commercial mixed use | 21 | 41,892 | 3 | 6 | 3,089 | 7 | |||||||||
Other | 44 | 85,569 | 5 | 12 | 29,838 | 35 | |||||||||
Total commercial real estate loans | 497 | $1,630,998 | 100 | % | 132 | $447,406 | 27 | % | |||||||
Commercial & Industrial Portfolio Segmentation: | |||||||||||||||
Healthcare and social assistance | 262 | $188,725 | 22 | % | 6 | $15,384 | 8 | % | |||||||
Manufacturing | 152 | 91,364 | 11 | 4 | 2,505 | 3 | |||||||||
Educational services | 59 | 73,172 | 9 | 4 | 7,329 | 10 | |||||||||
Owner occupied and other real estate | 278 | 71,516 | 8 | 21 | 5,128 | 7 | |||||||||
Retail | 206 | 67,461 | 8 | 5 | 2,693 | 4 | |||||||||
Professional, scientific and technical | 270 | 48,452 | 6 | 1 | 41 | — | |||||||||
Accommodation and food services | 278 | 45,257 | 5 | 18 | 12,252 | 27 | |||||||||
Finance and insurance | 106 | 38,213 | 4 | — | — | — | |||||||||
Entertainment and recreation | 94 | 35,626 | 4 | 11 | 13,045 | 37 | |||||||||
Transportation and warehousing | 46 | 30,208 | 4 | 5 | 1,414 | 5 | |||||||||
Information | 34 | 29,575 | 3 | — | — | — | |||||||||
Public administration | 25 | 23,534 | 3 | 1 | 98 | — | |||||||||
Other | 764 | 109,342 | 13 | 24 | 14,533 | 13 | |||||||||
Total commercial & industrial loans | 2,574 | $852,445 | 100 | % | 100 | $74,422 | 9 | % |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||
END OF PERIOD LOAN AND DEPOSIT COMPOSITION | |||||||||||
(Unaudited; Dollars in thousands) | |||||||||||
June 30, 2020 | December 31, 2019 | ||||||||||
Balance | % of Total | Balance | % of Total | ||||||||
Commercial Real Estate Loans by Property Location: | |||||||||||
Connecticut | $639,961 | 39 | % | $616,484 | 40 | % | |||||
Massachusetts | 492,703 | 30 | 458,029 | 30 | |||||||
Rhode Island | 420,197 | 26 | 394,929 | 25 | |||||||
Subtotal | 1,552,861 | 95 | 1,469,442 | 95 | |||||||
All other states | 78,137 | 5 | 78,130 | 5 | |||||||
Total commercial real estate loans | $1,630,998 | 100 | % | $1,547,572 | 100 | % | |||||
Residential Real Estate Loans by Property Location: | |||||||||||
Massachusetts | $1,006,616 | 67 | % | $932,726 | 64 | % | |||||
Rhode Island | 349,143 | 23 | 356,392 | 25 | |||||||
Connecticut | 131,856 | 9 | 140,574 | 10 | |||||||
Subtotal | 1,487,615 | 99 | 1,429,692 | 99 | |||||||
All other states | 20,608 | 1 | 19,398 | 1 | |||||||
Total residential real estate loans | $1,508,223 | 100 | % | $1,449,090 | 100 | % |
Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | |||||||||||
Deposits: | |||||||||||||||
Noninterest-bearing demand deposits | $815,770 | $622,893 | $609,924 | $619,839 | $587,326 | ||||||||||
Interest-bearing demand deposits | 158,343 | 178,391 | 159,938 | 152,200 | 128,355 | ||||||||||
NOW accounts | 617,792 | 528,650 | 520,295 | 478,462 | 484,615 | ||||||||||
Money market accounts | 834,954 | 784,893 | 765,899 | 749,122 | 654,719 | ||||||||||
Savings accounts | 417,195 | 382,509 | 373,503 | 362,868 | 365,069 | ||||||||||
Time deposits (in-market) | 728,801 | 776,992 | 784,481 | 792,941 | 801,501 | ||||||||||
In-market deposits | 3,572,855 | 3,274,328 | 3,214,040 | 3,155,432 | 3,021,585 | ||||||||||
Wholesale brokered time deposits | 528,581 | 431,986 | 284,842 | 430,721 | 483,037 | ||||||||||
Total deposits | $4,101,436 | $3,706,314 | $3,498,882 | $3,586,153 | $3,504,622 |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||
CREDIT & ASSET QUALITY DATA | |||||||||||||||
(Unaudited; Dollars in thousands) | |||||||||||||||
Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | |||||||||||
Asset Quality Ratios: | |||||||||||||||
Nonperforming assets to total assets | 0.27 | % | 0.32 | % | 0.35 | % | 0.37 | % | 0.29 | % | |||||
Nonaccrual loans to total loans | 0.37 | % | 0.44 | % | 0.45 | % | 0.39 | % | 0.34 | % | |||||
Total past due loans to total loans | 0.34 | % | 0.40 | % | 0.40 | % | 0.38 | % | 0.48 | % | |||||
Allowance for credit losses on loans to nonaccrual loans | 258.73 | % | 221.37 | % | 155.18 | % | 181.16 | % | 212.93 | % | |||||
Allowance for credit losses on loans to total loans | 0.97 | % | 0.97 | % | 0.69 | % | 0.71 | % | 0.73 | % | |||||
Nonperforming Assets: | |||||||||||||||
Commercial real estate | $431 | $450 | $603 | $684 | $926 | ||||||||||
Commercial & industrial | — | 290 | 657 | — | — | ||||||||||
Total commercial | 431 | 740 | 1,260 | 684 | 926 | ||||||||||
Residential real estate | 13,850 | 15,423 | 14,297 | 12,531 | 10,610 | ||||||||||
Home equity | 1,648 | 1,667 | 1,763 | 1,599 | 1,243 | ||||||||||
Other consumer | 88 | 88 | 88 | 88 | 88 | ||||||||||
Total consumer | 1,736 | 1,755 | 1,851 | 1,687 | 1,331 | ||||||||||
Total nonaccrual loans | 16,017 | 17,918 | 17,408 | 14,902 | 12,867 | ||||||||||
Other real estate owned | — | 28 | 1,109 | 4,142 | 2,142 | ||||||||||
Total nonperforming assets | $16,017 | $17,946 | $18,517 | $19,044 | $15,009 | ||||||||||
Past Due Loans (30 days or more past due): | |||||||||||||||
Commercial real estate | $431 | $1,275 | $1,433 | $684 | $3,670 | ||||||||||
Commercial & industrial | 3 | 310 | 1 | 1 | 1 | ||||||||||
Total commercial | 434 | 1,585 | 1,434 | 685 | 3,671 | ||||||||||
Residential real estate | 12,499 | 12,293 | 11,429 | 11,599 | 11,237 | ||||||||||
Home equity | 1,633 | 2,482 | 2,696 | 1,973 | 2,904 | ||||||||||
Other consumer | 106 | 115 | 130 | 99 | 102 | ||||||||||
Total consumer | 1,739 | 2,597 | 2,826 | 2,072 | 3,006 | ||||||||||
Total past due loans | $14,672 | $16,475 | $15,689 | $14,356 | $17,914 | ||||||||||
Accruing loans 90 days or more past due | $— | $— | $— | $— | $— | ||||||||||
Nonaccrual loans included in past due loans | $10,553 | $11,385 | $11,477 | $9,797 | $8,581 |
Washington Trust Bancorp, Inc. and Subsidiaries | ||||||||||||||||||||||
CREDIT & ASSET QUALITY DATA | ||||||||||||||||||||||
(Unaudited; Dollars in thousands) | ||||||||||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||||
Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Jun 30, 2020 | Jun 30, 2019 | ||||||||||||||||
Nonaccrual Loan Activity: | ||||||||||||||||||||||
Balance at beginning of period | $17,918 | $17,408 | $14,902 | $12,867 | $12,365 | $17,408 | $11,707 | |||||||||||||||
Additions to nonaccrual status | 237 | 1,729 | 2,766 | 5,672 | 1,620 | 1,966 | 3,544 | |||||||||||||||
Loans returned to accruing status | (154 | ) | (393 | ) | — | (597 | ) | (118 | ) | (547 | ) | (973 | ) | |||||||||
Loans charged-off | (325 | ) | (635 | ) | (132 | ) | (966 | ) | (819 | ) | (960 | ) | (922 | ) | ||||||||
Loans transferred to other real estate owned | — | (28 | ) | — | (2,000 | ) | — | (28 | ) | — | ||||||||||||
Payments, payoffs and other changes | (1,659 | ) | (163 | ) | (128 | ) | (74 | ) | (181 | ) | (1,822 | ) | (489 | ) | ||||||||
Balance at end of period | $16,017 | $17,918 | $17,408 | $14,902 | $12,867 | $16,017 | $12,867 | |||||||||||||||
Allowance for Credit Losses on Loans: | ||||||||||||||||||||||
Balance at beginning of period | $39,665 | $27,014 | $26,997 | $27,398 | $27,644 | $27,014 | $27,072 | |||||||||||||||
Adoption of CECL accounting standard (Topic 326) | — | 6,501 | — | — | — | 6,501 | — | |||||||||||||||
Provision for credit losses on loans (1) | 2,084 | 6,773 | — | 400 | 525 | 8,857 | 1,175 | |||||||||||||||
Charge-offs | (326 | ) | (635 | ) | (132 | ) | (966 | ) | (819 | ) | (961 | ) | (922 | ) | ||||||||
Recoveries | 18 | 12 | 149 | 165 | 48 | 30 | 73 | |||||||||||||||
Balance at end of period | $41,441 | $39,665 | $27,014 | $26,997 | $27,398 | $41,441 | $27,398 | |||||||||||||||
Allowance for Credit Losses on Unfunded Commitments: | ||||||||||||||||||||||
Balance at beginning of period | $2,039 | $293 | $317 | $302 | $242 | $293 | $289 | |||||||||||||||
Adoption of CECL accounting standard (Topic 326) | — | 1,483 | — | — | — | 1,483 | — | |||||||||||||||
Provision for credit losses on unfunded commitments (2) | 116 | 263 | (24 | ) | 15 | 60 | 379 | 13 | ||||||||||||||
Balance at end of period (3) | $2,155 | $2,039 | $293 | $317 | $302 | $2,155 | $302 |
(1) | Included in provision for credit losses in the Consolidated Statements of Income. |
(2) | Included in provision for credit losses in the Consolidated Statements of Income for the three months ended March 31, 2020. For periods prior to 2020, included in other noninterest expense in the Consolidated Statements of Income. |
(3) | Included in other liabilities in the Consolidated Balance Sheets. |
For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||||
Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Jun 30, 2020 | Jun 30, 2019 | ||||||||||||||||
Net Loan Charge-Offs (Recoveries): | ||||||||||||||||||||||
Commercial real estate | $19 | $153 | ($44 | ) | $947 | $— | $172 | $— | ||||||||||||||
Commercial & industrial | 284 | 290 | (15 | ) | (122 | ) | (16 | ) | 574 | (10 | ) | |||||||||||
Total commercial | 303 | 443 | (59 | ) | 825 | (16 | ) | 746 | (10 | ) | ||||||||||||
Residential real estate | — | — | — | — | 486 | — | 486 | |||||||||||||||
Home equity | (5 | ) | 172 | 17 | (36 | ) | 289 | 167 | 337 | |||||||||||||
Other consumer | 10 | 8 | 25 | 12 | 12 | 18 | 36 | |||||||||||||||
Total consumer | 5 | 180 | 42 | (24 | ) | 301 | 185 | 373 | ||||||||||||||
Total | $308 | $623 | ($17 | ) | $801 | $771 | $931 | $849 | ||||||||||||||
Net charge-offs to average loans (annualized) | 0.03 | % | 0.06 | % | — | % | 0.08 | % | 0.08 | % | 0.04 | % | 0.05 | % |
Washington Trust Bancorp, Inc. and Subsidiaries | ||||||||||||||||||||||||||
CONSOLIDATED AVERAGE BALANCE SHEETS (FTE Basis) | ||||||||||||||||||||||||||
(Unaudited; Dollars in thousands) | ||||||||||||||||||||||||||
For the Three Months Ended | June 30, 2020 | March 31, 2020 | 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 | $187,306 | $36 | 0.08 | % | $113,344 | $349 | 1.24 | % | $73,962 | ($313 | ) | (1.16 | )% | |||||||||||||
Mortgage loans held for sale | 53,443 | 440 | 3.31 | 31,087 | 285 | 3.69 | 22,356 | 155 | (0.38 | ) | ||||||||||||||||
Taxable debt securities | 904,792 | 5,477 | 2.43 | 905,293 | 5,833 | 2.59 | (501 | ) | (356 | ) | (0.16 | ) | ||||||||||||||
FHLB stock | 51,967 | 654 | 5.06 | 51,962 | 640 | 4.95 | 5 | 14 | 0.11 | |||||||||||||||||
Commercial real estate | 1,635,431 | 12,580 | 3.09 | 1,582,956 | 16,097 | 4.09 | 52,475 | (3,517 | ) | (1.00 | ) | |||||||||||||||
Commercial & industrial | 791,672 | 6,739 | 3.42 | 607,499 | 6,556 | 4.34 | 184,173 | 183 | (0.92 | ) | ||||||||||||||||
Total commercial | 2,427,103 | 19,319 | 3.20 | 2,190,455 | 22,653 | 4.16 | 236,648 | (3,334 | ) | (0.96 | ) | |||||||||||||||
Residential real estate | 1,497,665 | 14,330 | 3.85 | 1,469,282 | 14,283 | 3.91 | 28,383 | 47 | (0.06 | ) | ||||||||||||||||
Home equity | 282,470 | 2,382 | 3.39 | 285,832 | 3,101 | 4.36 | (3,362 | ) | (719 | ) | (0.97 | ) | ||||||||||||||
Other | 18,956 | 229 | 4.86 | 19,855 | 249 | 5.04 | (899 | ) | (20 | ) | (0.18 | ) | ||||||||||||||
Total consumer | 301,426 | 2,611 | 3.48 | 305,687 | 3,350 | 4.41 | (4,261 | ) | (739 | ) | (0.93 | ) | ||||||||||||||
Total loans | 4,226,194 | 36,260 | 3.45 | 3,965,424 | 40,286 | 4.09 | 260,770 | (4,026 | ) | (0.64 | ) | |||||||||||||||
Total interest-earning assets | 5,423,702 | 42,867 | 3.18 | 5,067,110 | 47,393 | 3.76 | 356,592 | (4,526 | ) | (0.58 | ) | |||||||||||||||
Noninterest-earning assets | 365,990 | 327,838 | 38,152 | |||||||||||||||||||||||
Total assets | $5,789,692 | $5,394,948 | $394,744 | |||||||||||||||||||||||
Liabilities and Shareholders' Equity: | ||||||||||||||||||||||||||
Interest-bearing demand deposits | $162,388 | $142 | 0.35 | % | $155,416 | $500 | 1.29 | % | $6,972 | ($358 | ) | (0.94 | )% | |||||||||||||
NOW accounts | 570,739 | 84 | 0.06 | 505,282 | 69 | 0.05 | 65,457 | 15 | 0.01 | |||||||||||||||||
Money market accounts | 821,063 | 1,370 | 0.67 | 795,268 | 2,092 | 1.06 | 25,795 | (722 | ) | (0.39 | ) | |||||||||||||||
Savings accounts | 403,286 | 67 | 0.07 | 374,374 | 62 | 0.07 | 28,912 | 5 | — | |||||||||||||||||
Time deposits (in-market) | 746,750 | 3,507 | 1.89 | 780,355 | 4,049 | 2.09 | (33,605 | ) | (542 | ) | (0.20 | ) | ||||||||||||||
Total interest-bearing in-market deposits | 2,704,226 | 5,170 | 0.77 | 2,610,695 | 6,772 | 1.04 | 93,531 | (1,602 | ) | (0.27 | ) | |||||||||||||||
Wholesale brokered time deposits | 559,822 | 1,942 | 1.40 | 391,822 | 1,764 | 1.81 | 168,000 | 178 | (0.41 | ) | ||||||||||||||||
Total interest-bearing deposits | 3,264,048 | 7,112 | 0.88 | 3,002,517 | 8,536 | 1.14 | 261,531 | (1,424 | ) | (0.26 | ) | |||||||||||||||
FHLB advances | 1,068,034 | 4,382 | 1.65 | 1,123,754 | 5,765 | 2.06 | (55,720 | ) | (1,383 | ) | (0.41 | ) | ||||||||||||||
Junior subordinated debentures | 22,681 | 171 | 3.03 | 22,681 | 213 | 3.78 | — | (42 | ) | (0.75 | ) | |||||||||||||||
Other borrowings | 2,565 | 2 | 0.31 | — | — | — | 2,565 | 2 | 0.31 | |||||||||||||||||
Total interest-bearing liabilities | 4,357,328 | 11,667 | 1.08 | 4,148,952 | 14,514 | 1.41 | 208,376 | (2,847 | ) | (0.33 | ) | |||||||||||||||
Noninterest-bearing demand deposits | 745,050 | 610,872 | 134,178 | |||||||||||||||||||||||
Other liabilities | 175,563 | 132,000 | 43,563 | |||||||||||||||||||||||
Shareholders' equity | 511,751 | 503,124 | 8,627 | |||||||||||||||||||||||
Total liabilities and shareholders' equity | $5,789,692 | $5,394,948 | $394,744 | |||||||||||||||||||||||
Net interest income (FTE) | $31,200 | $32,879 | ($1,679 | ) | ||||||||||||||||||||||
Interest rate spread | 2.10 | % | 2.35 | % | (0.25 | )% | ||||||||||||||||||||
Net interest margin | 2.31 | % | 2.61 | % | (0.30 | )% |
For the Three Months Ended | Jun 30, 2020 | Mar 31, 2020 | Quarter Change | ||||||
Commercial loans | $254 | $278 | ($24 | ) | |||||
Total | $254 | $278 | ($24 | ) |
Washington Trust Bancorp, Inc. and Subsidiaries | ||||||||||||||||||||||||
CONSOLIDATED AVERAGE BALANCE SHEETS (FTE Basis) | ||||||||||||||||||||||||
(Unaudited; Dollars in thousands) | ||||||||||||||||||||||||
For the Six Months Ended | June 30, 2020 | June 30, 2019 | 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 | $150,325 | $385 | 0.52 | % | $64,713 | $739 | 2.30 | % | $85,612 | ($354 | ) | (1.78 | )% | |||||||||||
Mortgage loans for sale | 42,265 | 725 | 3.45 | 22,588 | 468 | 4.18 | 19,677 | 257 | (0.73 | ) | ||||||||||||||
Taxable debt securities | 905,043 | 11,311 | 2.51 | 998,738 | 14,232 | 2.87 | (93,695 | ) | (2,921 | ) | (0.36 | ) | ||||||||||||
Nontaxable debt securities | — | — | — | 870 | 21 | 4.87 | (870 | ) | (21 | ) | (4.87 | ) | ||||||||||||
Total securities | 905,043 | 11,311 | 2.51 | 999,608 | 14,253 | 2.88 | (94,565 | ) | (2,942 | ) | (0.37 | ) | ||||||||||||
FHLB stock | 51,964 | 1,294 | 5.01 | 48,288 | 1,415 | 5.91 | 3,676 | (121 | ) | (0.90 | ) | |||||||||||||
Commercial mortgages | ||||||||||||||||||||||||
Construction & development | ||||||||||||||||||||||||
Commercial real estate | 1,609,193 | 28,677 | 3.58 | 1,446,923 | 34,388 | 4.79 | 162,270 | (5,711 | ) | (1.21 | ) | |||||||||||||
Commercial & industrial | 699,586 | 13,294 | 3.82 | 612,568 | 15,026 | 4.95 | 87,018 | (1,732 | ) | (1.13 | ) | |||||||||||||
Total commercial | 2,308,779 | 41,971 | 3.66 | 2,059,491 | 49,414 | 4.84 | 249,288 | (7,443 | ) | (1.18 | ) | |||||||||||||
Residential real estate | 1,483,473 | 28,613 | 3.88 | 1,354,330 | 27,371 | 4.08 | 129,143 | 1,242 | (0.20 | ) | ||||||||||||||
Home equity | 284,151 | 5,483 | 3.88 | 281,404 | 7,142 | 5.12 | 2,747 | (1,659 | ) | (1.24 | ) | |||||||||||||
Other | 19,406 | 478 | 4.95 | 24,905 | 609 | 4.93 | (5,499 | ) | (131 | ) | 0.02 | |||||||||||||
Total consumer | 303,557 | 5,961 | 3.95 | 306,309 | 7,751 | 5.10 | (2,752 | ) | (1,790 | ) | (1.15 | ) | ||||||||||||
Total loans | 4,095,809 | 76,545 | 3.76 | 3,720,130 | 84,536 | 4.58 | 375,679 | (7,991 | ) | (0.82 | ) | |||||||||||||
Total interest-earning assets | 5,245,406 | 90,260 | 3.46 | 4,855,327 | 101,411 | 4.21 | 390,079 | (11,151 | ) | (0.75 | ) | |||||||||||||
Noninterest-earning assets | 346,914 | 278,714 | 68,200 | |||||||||||||||||||||
Total assets | $5,592,320 | $5,134,041 | $458,279 | |||||||||||||||||||||
Liabilities and Shareholders' Equity: | ||||||||||||||||||||||||
Interest-bearing demand deposits | $158,902 | $642 | 0.81 | % | $147,522 | $1,311 | 1.79 | % | $11,380 | ($669 | ) | (0.98 | )% | |||||||||||
NOW accounts | 538,010 | 154 | 0.06 | 458,563 | 159 | 0.07 | 79,447 | (5 | ) | (0.01 | ) | |||||||||||||
Money market accounts | 808,166 | 3,462 | 0.86 | 652,671 | 3,440 | 1.06 | 155,495 | 22 | (0.20 | ) | ||||||||||||||
Savings accounts | 388,831 | 128 | 0.07 | 367,826 | 131 | 0.07 | 21,005 | (3 | ) | — | ||||||||||||||
Time deposits (in-market) | 763,552 | 7,556 | 1.99 | 793,012 | 7,719 | 1.96 | (29,460 | ) | (163 | ) | 0.03 | |||||||||||||
Total interest-bearing in-market deposits | 2,657,461 | 11,942 | 0.90 | 2,419,594 | 12,760 | 1.06 | 237,867 | (818 | ) | (0.16 | ) | |||||||||||||
Wholesale brokered time deposits | 475,822 | 3,706 | 1.57 | 490,680 | 5,405 | 2.22 | (14,858 | ) | (1,699 | ) | (0.65 | ) | ||||||||||||
Total interest-bearing deposits | 3,133,283 | 15,648 | 1.00 | 2,910,274 | 18,165 | 1.26 | 223,009 | (2,517 | ) | (0.26 | ) | |||||||||||||
FHLB advances | 1,095,894 | 10,147 | 1.86 | 1,039,037 | 13,641 | 2.65 | 56,857 | (3,494 | ) | (0.79 | ) | |||||||||||||
Junior subordinated debentures | 22,681 | 384 | 3.40 | 22,681 | 505 | 4.49 | — | (121 | ) | (1.09 | ) | |||||||||||||
Other borrowings | 1,282 | 2 | 0.31 | — | — | — | 1,282 | 2 | 0.31 | |||||||||||||||
Total interest-bearing liabilities | 4,253,140 | 26,181 | 1.24 | 3,971,992 | 32,311 | 1.64 | 281,148 | (6,130 | ) | (0.40 | ) | |||||||||||||
Noninterest-bearing demand deposits | 677,961 | 607,569 | 70,392 | |||||||||||||||||||||
Other liabilities | 153,781 | 89,133 | 64,648 | |||||||||||||||||||||
Shareholders' equity | 507,438 | 465,347 | 42,091 | |||||||||||||||||||||
Total liabilities and shareholders' equity | $5,592,320 | $5,134,041 | $458,279 | |||||||||||||||||||||
Net interest income (FTE) | $64,079 | $69,100 | ($5,021 | ) | ||||||||||||||||||||
Interest rate spread | 2.22 | % | 2.57 | % | (0.35 | )% | ||||||||||||||||||
Net interest margin | 2.46 | % | 2.87 | % | (0.41 | )% |
For the Six Months Ended | Jun 30, 2020 | Jun 30, 2019 | Change | ||||||
Commercial loans | $532 | $654 | ($122 | ) | |||||
Nontaxable debt securities | — | 4 | (4 | ) | |||||
Total | $532 | $658 | ($126 | ) |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||
SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures | |||||||||||||||
(Unaudited; Dollars in thousands, except per share amounts) | |||||||||||||||
Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | |||||||||||
Tangible Book Value per Share: | |||||||||||||||
Total shareholders' equity, as reported | $520,163 | $508,597 | $503,492 | $497,825 | $484,205 | ||||||||||
Less: | |||||||||||||||
Goodwill | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | ||||||||||
Identifiable intangible assets, net | 6,759 | 6,988 | 7,218 | 7,448 | 7,684 | ||||||||||
Total tangible shareholders' equity | $449,495 | $437,700 | $432,365 | $426,468 | $412,612 | ||||||||||
Shares outstanding, as reported | 17,260 | 17,252 | 17,363 | 17,338 | 17,336 | ||||||||||
Book value per share - GAAP | $30.14 | $29.48 | $29.00 | $28.71 | $27.93 | ||||||||||
Tangible book value per share - Non-GAAP | $26.04 | $25.37 | $24.90 | $24.60 | $23.80 | ||||||||||
Tangible Equity to Tangible Assets: | |||||||||||||||
Total tangible shareholders' equity | $449,495 | $437,700 | $432,365 | $426,468 | $412,612 | ||||||||||
Total assets, as reported | $5,876,960 | $5,620,979 | $5,292,659 | $5,198,878 | $5,189,672 | ||||||||||
Less: | |||||||||||||||
Goodwill | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | ||||||||||
Identifiable intangible assets, net | 6,759 | 6,988 | 7,218 | 7,448 | 7,684 | ||||||||||
Total tangible assets | $5,806,292 | $5,550,082 | $5,221,532 | $5,127,521 | $5,118,079 | ||||||||||
Equity to assets - GAAP | 8.85 | % | 9.05 | % | 9.51 | % | 9.58 | % | 9.33 | % | |||||
Tangible equity to tangible assets - Non-GAAP | 7.74 | % | 7.89 | % | 8.28 | % | 8.32 | % | 8.06 | % |
For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||||
Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Jun 30, 2020 | Jun 30, 2019 | ||||||||||||||||
Return on Average Tangible Assets: | ||||||||||||||||||||||
Net income, as reported | $21,040 | $11,901 | $15,536 | $18,814 | $17,273 | $32,941 | $34,768 | |||||||||||||||
Total average assets, as reported | $5,789,692 | $5,394,948 | $5,227,035 | $5,181,016 | $5,171,562 | $5,592,320 | $5,134,041 | |||||||||||||||
Less average balances of: | ||||||||||||||||||||||
Goodwill | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | |||||||||||||||
Identifiable intangible assets, net | 6,871 | 7,100 | 7,330 | 7,562 | 7,800 | 6,985 | 7,919 | |||||||||||||||
Total average tangible assets | $5,718,912 | $5,323,939 | $5,155,796 | $5,109,545 | $5,099,853 | $5,521,426 | $5,062,213 | |||||||||||||||
Return on average assets - GAAP | 1.46 | % | 0.89 | % | 1.18 | % | 1.44 | % | 1.34 | % | 1.18 | % | 1.37 | % | ||||||||
Return on average tangible assets - Non-GAAP | 1.48 | % | 0.90 | % | 1.20 | % | 1.46 | % | 1.36 | % | 1.20 | % | 1.39 | % | ||||||||
Return on Average Tangible Equity: | ||||||||||||||||||||||
Net income available to common shareholders, as reported | $21,000 | $11,869 | $15,502 | $18,778 | $17,238 | $32,869 | $34,699 | |||||||||||||||
Total average equity, as reported | $511,751 | $503,124 | $502,614 | $490,197 | $474,353 | $507,438 | $465,347 | |||||||||||||||
Less average balances of: | ||||||||||||||||||||||
Goodwill | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | |||||||||||||||
Identifiable intangible assets, net | 6,871 | 7,100 | 7,330 | 7,562 | 7,800 | 6,985 | 7,919 | |||||||||||||||
Total average tangible equity | $440,971 | $432,115 | $431,375 | $418,726 | $402,644 | $436,544 | $393,519 | |||||||||||||||
Return on average equity - GAAP | 16.51 | % | 9.49 | % | 12.24 | % | 15.20 | % | 14.58 | % | 13.03 | % | 15.04 | % | ||||||||
Return on average tangible equity - Non-GAAP | 19.15 | % | 11.05 | % | 14.26 | % | 17.79 | % | 17.17 | % | 15.14 | % | 17.78 | % |
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Cover Page Document |
Jul. 20, 2020 |
---|---|
Cover Page [Abstract] | |
Document Type | 8-K |
Document Period End Date | Jul. 20, 2020 |
Entity Registrant Name | WASHINGTON TRUST BANCORP, INC. |
Entity Incorporation, State or Country Code | RI |
Entity File Number | 001-32991 |
Entity Tax Identification Number | 05-0404671 |
Entity Address, Address Line One | 23 Broad Street |
Entity Address, City or Town | Westerly, |
Entity Address, State or Province | RI |
Entity Address, Postal Zip Code | 02891 |
City Area Code | (401) |
Local Phone Number | 348-1200 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0000737468 |
Amendment Flag | false |
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