Exhibit 99.1
NASDAQ: WASH
Contact: Elizabeth B. Eckel
SVP, Chief Marketing & Corporate Communications Officer
Telephone: (401) 348-1309
E-mail: ebeckel@washtrust.com
Date: January 26, 2022
FOR IMMEDIATE RELEASE
Washington Trust Reports Fourth Quarter and Full-Year 2021 Earnings
WESTERLY, R.I., January 26, 2022 (PR NEWSWIRE)…Washington Trust Bancorp, Inc. (Nasdaq:WASH), parent company of The Washington Trust Company, today announced fourth quarter 2021 net income of $20.2 million, or $1.15 per diluted share, compared to net income of $18.8 million, or $1.07 per diluted share, for the third quarter of 2021. Net income for the year ended December 31, 2021 totaled $76.9 million, or $4.39 per diluted share, compared to $69.8 million, or $4.00 per diluted share, reported for the prior year.
“Washington Trust reported strong fourth quarter and full-year 2021 results,” stated Edward O. Handy III, Washington Trust Chairman and Chief Executive Officer. “We achieved record wealth management revenues, originated an all-time high volume of residential mortgages, reached a record level of in-market deposits and maintained healthy commercial loan activity. Solid business line performances and a strong balance sheet have positioned us well as we enter 2022.”
Selected financial highlights for the fourth quarter and full-year 2021 include:
•Returns on average equity and average assets for the fourth quarter were 14.34% and 1.36%, respectively, compared to 13.37% and 1.26%, respectively, for the preceding quarter. Full-year returns on average equity and average assets for 2021 were 14.03% and 1.32%, respectively, compared to 13.51% and 1.22%, respectively, for the prior year.
•A negative provision for credit losses (or a benefit) of $2.8 million was recognized in earnings in the fourth quarter of 2021, compared to no provision for credit losses in the preceding quarter. For the full-year 2021, a negative provision for credit losses (or a benefit) of $4.8 million was recognized in earnings, compared to a positive provision for credit losses (or a charge) of $12.3 million in 2020.
•Wealth management assets under administration ("AUA") amounted to an all-time high $7.8 billion at December 31, 2021. Fourth quarter and full-year wealth management revenues reached record highs of $10.5 million and $41.3 million, respectively.
•Residential real estate loan originations totaled $363 million in the fourth quarter, bringing the full-year residential loan origination total to an all-time high of $1.69 billion.
•Total loans excluding Paycheck Protection Program ("PPP") loans amounted to $4.2 billion, up by $26 million, or 1%, from the end of the preceding quarter and up by $256 million, or 6%, from a year ago.
•In-market deposits (total deposits less out-of-market wholesale brokered deposits) amounted to a record $4.5 billion at December 31, 2021, up by $162 million, or 4%, from the end of the preceding quarter, and up by $678 million, or 18%, from a year ago.
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Washington Trust
January 26, 2022
Net Interest Income
Net interest income was $37.7 million for the fourth quarter of 2021, up by $1.7 million, or 5%, from the third quarter of 2021. The net interest margin was 2.71% for the fourth quarter, up by 13 basis points from the preceding quarter. Both net interest income and the net interest margin benefited from commercial loan prepayment fee income, as well as accelerated net deferred fee amortization associated with PPP loans that were forgiven by the Small Business Administration. Commercial loan prepayment fee income amounted to $2.2 million, or 16 basis points, in the fourth quarter of 2021. There was no commercial loan prepayment fee income in the preceding quarter. In the fourth quarter of 2021, accelerated net deferred fee amortization on PPP loans amounted to $1.2 million, or 9 basis points, compared to $2.0 million, or 13 basis points, in the preceding quarter. Excluding the impact of these items for both periods, the net interest margin was 2.46% in the fourth quarter of 2021, up from 2.45% in the preceding quarter. Linked quarter changes included:
•Average interest-earning assets decreased by $8 million, largely reflecting a decline in average loan balances, partially offset by increases in average investment securities and cash and due from banks balances. The yield on interest-earning assets for the fourth quarter was 2.97%, up by 12 basis points from the preceding quarter. Excluding the impact of commercial loan prepayment fee income and accelerated net deferred fee amortization on PPP loans for both periods, the yield on interest-earning assets was essentially unchanged.
•Average interest-bearing liabilities decreased by $54 million, due to a decrease of $257 million in average wholesale funding balances, partially offset by an increase of $203 million in average in-market deposits. The cost of interest-bearing liabilities for the fourth quarter of 2021 was 0.34%, down by 1 basis point from the preceding quarter.
Noninterest Income
Noninterest income totaled $20.3 million for the fourth quarter of 2021, down by $213 thousand, or 1%, from the third quarter of 2021. Linked quarter changes included:
•Wealth management revenues amounted to $10.5 million in the fourth quarter of 2021, up by $49 thousand, or 0.5%, on a linked quarter basis. This included an increase in asset-based revenues of $193 thousand, or 2%, and a decrease in transaction-based revenues of $144 thousand, or 62%, from the preceding quarter. The linked quarter decline in transaction-based revenues was concentrated in annuity commission fee income.
Wealth management AUA amounted to $7.8 billion at December 31, 2021, up by $341 million from September 30, 2021. The increase reflected net investment appreciation of $359 million, partially offset by net client asset outflows of $18 million in the fourth quarter of 2021. The average balance of AUA for the fourth quarter of 2021 increased by approximately $86 million, or 1%, from the average balance for the preceding quarter.
•Mortgage banking revenues totaled $4.3 million for the fourth quarter of 2021, down by $2.0 million, or 32%, from the third quarter of 2021, largely due to changes in fair value of mortgage loan commitments. Realized gains on sales of loans decreased by a $55 thousand, or 1%, as a lower sales yield on loans sold to the secondary market was essentially offset by a higher sales volume. Mortgage loans sold to the secondary market amounted to $197 million in the fourth quarter of 2021, up by $23 million, or 13%, from the preceding quarter.
•Loan related derivative income was $2.0 million in the fourth quarter of 2021, up by $1.2 million from the preceding quarter, reflecting a higher volume of commercial borrower interest rate swap transactions.
•Income from bank-owned life insurance totaled $1.1 million in the fourth quarter of 2021, up by $526 thousand, or
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Washington Trust
January 26, 2022
85%, from the preceding quarter. The fourth quarter included the recognition of $526 thousand in non-taxable income associated with the receipt of life insurance proceeds.
Noninterest Expense
Noninterest expense totaled $35.2 million for the fourth quarter of 2021, up by $2.7 million, or 8%, from the third quarter of 2021. Included in noninterest expense for the fourth quarter of 2021 was debt prepayment penalty expense of $2.7 million, resulting from the payoff of higher-yielding FHLB advances. There was no debt prepayment penalty expense recognized in the third quarter of 2021. Excluding the impact of debt prepayment penalty expense, noninterest expense was essentially unchanged from the prior quarter.
Salaries and employee benefits expense, the largest component of noninterest expense, amounted to $21.5 million for the fourth quarter of 2021, down by $638 thousand, or 3%, from the preceding quarter, largely reflecting adjustments to performance-based compensation accruals. The decrease in salaries and employee benefits expense was essentially offset by an increase of $291 thousand in outsourced services expense, due to a higher volume of commercial borrower loan related derivative transactions, as well as modest increases across a variety of other expense categories.
Income Tax
Income tax expense totaled $5.5 million for the fourth quarter of 2021, up by $143 thousand from the preceding quarter, largely due to a higher level of pre-tax income. The effective tax rate for the fourth quarter of 2021 was 21.3%, compared to 22.1% in the preceding quarter. Based on current federal and applicable state income statutes, the Corporation currently expects its full-year 2022 effective tax rate to be approximately 21.5%.
Investment Securities
The securities portfolio totaled $1.0 billion at December 31, 2021, down by $3 million, from September 30, 2021, reflecting routine pay-downs on mortgage-backed securities and calls of debt securities, partially offset by purchases of U.S. government agency and U.S. government-sponsored debt securities, including mortgage-backed securities. Purchases of debt securities in the fourth quarter 2021 totaled $80 million, with a weighted average yield of 1.78%. Securities represented 18% of total assets at December 31, 2021, compared to 17% of total assets at September 30, 2021.
Loans
Total loans amounted to $4.3 billion at December 31, 2021, down by $13 million, from the end of the preceding quarter. Linked quarter changes included:
•Commercial loans decreased by $64 million, or 3%, from September 30, 2021, which included a net reduction in PPP loans of $39 million. Excluding PPP loans, commercial loans decreased by $25 million, or 1%, from September 30, 2021, reflecting payoffs and pay-downs of approximately $195 million, partially offset by commercial loan originations and advances of approximately $170 million.
•Residential real estate loans increased by $55 million, or 3%, from September 30, 2021. In the fourth quarter of 2021, residential real estate loans originated for portfolio amounted to $174 million.
•The consumer loan portfolio decreased by $4 million, or 2%, from the balance at September 30, 2021.
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Washington Trust
January 26, 2022
Deposits and Borrowings
At December 31, 2021, in-market deposits, which exclude wholesale brokered time deposits, amounted to $4.5 billion, up by $162 million, or 4%, from the end of the preceding quarter, reflecting growth across all deposit categories. Wholesale brokered time deposits amounted to $515 million, down by $240 million, or 32%, from September 30, 2021. Total deposits amounted to $5.0 billion at December 31, 2021, down by $78 million, or 2%, from the end of the preceding quarter.
FHLB advances totaled $145 million at December 31, 2021, down by $78 million from September 30, 2021. In the fourth quarter of 2021, higher-yielding FHLB advances of approximately $45 million were prepaid.
Asset Quality
Total nonaccrual loans amounted to $14.2 million, or 0.33% of total loans, at December 31, 2021, compared to $11.0 million, or 0.26% of total loans, at September 30, 2021.
Total past due loans amounted to $10.4 million, or 0.24% of total loans, at December 31, 2021, compared to $9.5 million, or 0.22% of total loans, at September 30, 2021.
As of December 31, 2021, active loan payment deferral modifications, or "deferments", in response to the COVID-19 pandemic remain on one commercial real estate relationship with two loans totaling $9.7 million, or 0.2% of the outstanding balance of total loans excluding PPP loan balances. This is down from active deferments on five loans totaling $38.0 million, or 1% of the outstanding balance of total loans excluding PPP loan balances, as of September 30, 2021.
Total troubled debt restructured loans ("TDR") amounted to $19.1 million as of December 31, 2021, up by $9.4 million from September 30, 2021, due to the restructuring of one commercial real estate relationship with two loans that did not qualify for additional TDR accounting relief.
The allowance for credit losses ("ACL") on loans amounted to $39.1 million, or 0.91% of total loans, at December 31, 2021, compared to $41.7 million, or 0.97% of total loans, at September 30, 2021. The ACL on unfunded commitments, included in other liabilities on the Consolidated Balance Sheets, amounted to $2.2 million at December 31, 2021, compared to $2.3 million at September 30, 2021.
In the fourth quarter of 2021, there was a negative $2.8 million provision for credit losses (or a benefit) recognized in earnings. There was no provision for credit losses recognized in the preceding quarter. The reduction in the provision for credit losses and the related ACL reflected a continued downward trend in loan loss rates, as well as improvements in forecasted economic conditions and relatively stable asset quality metrics. In the fourth quarter of 2021, net recoveries of $27 thousand were recognized, compared to net charge-offs of $168 thousand in the preceding quarter. Full-year 2021 net charge-offs were $417 thousand, compared to $1.1 million in the prior year.
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Washington Trust
January 26, 2022
Capital and Dividends
Total shareholders' equity was $564.8 million at December 31, 2021, up by $9.5 million from September 30, 2021. This increase included net income of $20.2 million, partially offset by $9.4 million in dividend declarations, as well as a decrease of $1.9 million in the accumulated other comprehensive income component of shareholders' equity. The decrease in the accumulated other comprehensive income component of shareholders' equity included a temporary decrease in the fair value of available for sale securities, partially offset by a $4.5 million increase associated with the annual remeasurement of pension liabilities. The increase to shareholders' equity associated with the annual remeasurement of pension liabilities was largely due to an increase in the discount rate used to measure the present value of pension plan liabilities, resulting from a rise in market interest rates in 2021.
Capital levels at December 31, 2021 exceeded the regulatory minimum levels to be considered well capitalized, with a total risk-based capital ratio of 14.01% at December 31, 2021, compared to 13.83% at September 30, 2021.
Book value per share was $32.59 at December 31, 2021, compared to $32.06 at September 30, 2021.
The Board of Directors declared a quarterly dividend of 54 cents per share for the quarter ended December 31, 2021, representing an increase of 2 cents per share from the preceding quarter. The dividend was paid on January 7, 2022 to shareholders of record on January 3, 2022. Full-year 2021 dividends totaled $2.10 per share, an increase of 5 cents per share from full-year 2020 dividends of $2.05 per share.
Conference Call
Washington Trust will host a conference call to discuss its fourth quarter results, business highlights and outlook on Thursday, January 27, 2022 at 8:30 a.m. (Eastern Time). Individuals may dial in to the call at 1-844-200-6205. An audio replay of the call will be available, shortly after the conclusion of the call, by dialing 1-866-813-9403 and entering the Replay PIN Number 665774; the audio replay will be available through February 26, 2022. Also, a webcast of the call will be posted in the Investor Relations section of Washington Trust's website, http://ir.washtrust.com, and will be available through March 31, 2022.
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Washington Trust
January 26, 2022
Background
Washington Trust Bancorp, Inc. is the parent of The Washington Trust Company. Founded in 1800, Washington Trust is the oldest community bank in the nation, the largest state-chartered bank headquartered in Rhode Island and one of the Northeast's premier financial services companies. Washington Trust offers a full range of financial services, including commercial banking, mortgage banking, personal banking and wealth management and trust services through its offices located in Rhode Island, Connecticut and Massachusetts. The Corporation’s common stock trades on NASDAQ under the symbol WASH. Investor information is available on the Corporation’s web site at http://ir.washtrust.com.
Forward-Looking Statements
This press release contains statements that are “forward-looking statements”. We may also make forward-looking statements in other documents we file with the SEC, in our annual reports to shareholders, in press releases and other written materials, and in oral statements made by our officers, directors or employees. You can identify forward-looking statements by the use of the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “assume,” “outlook,” “will,” “should,” and other expressions that predict or indicate future events and trends and which do not relate to historical matters. You should not rely on forward-looking statements, because they involve known and unknown risks, uncertainties and other factors, some of which are beyond our control. These risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from the anticipated future results, performance or achievements expressed or implied by the forward-looking statements.
Some of the factors that might cause these differences include the following: ongoing disruptions due to the COVID-19 pandemic and measures taken to contain its spread on our employees, customers, business operations, credit quality, financial position, liquidity and results of operations; changes in consumer behavior due to changing political, business and economic conditions, including concerns about inflation, or legislative or regulatory initiatives; the possibility that future credit losses are higher than currently expected due to changes in economic assumptions or adverse economic developments; volatility in national and international financial markets; interest rate changes or volatility, as well as changes in the balance and mix of loans and deposits; reductions in the market value or outflows of wealth management assets under administration; decreases in the value of securities and other assets; changes in loan demand and collectability; increases in defaults and charge-off rates; changes related to the discontinuation and replacement of LIBOR; changes in the size and nature of our competition; changes in legislation or regulation and accounting principles, policies and guidelines; operational risks including, but not limited to, cybersecurity incidents, fraud, natural disasters and future pandemics; reputational risk relating to our participation in the Paycheck Protection Program and other pandemic-related legislative and regulatory initiatives and programs; and changes in the assumptions used in making such forward-looking statements. In addition, the factors described under “Risk Factors” in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2020, as updated by our Quarterly Reports on Form 10-Q and other filings submitted to the SEC, may result in these differences. You should carefully review all of these factors and you should be aware that there may be other factors that could cause these differences. These forward-looking statements were based on information, plans and estimates at the date of this report, and we assume no obligation to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes.
Supplemental Information - Explanation of Non-GAAP Financial Measures
In addition to results presented in accordance with generally accepted accounting principles (“GAAP”), this press release contains certain non-GAAP financial measures. Washington Trust's management believes that the supplemental non-GAAP information, which consists of measurements and ratios based on tangible equity and tangible assets, is utilized by regulators and market analysts to evaluate a company's financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.
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| Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||||||||
| (Unaudited; Dollars in thousands) | |||||||||||||||||
| Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | |||||||||||||
| Assets: | |||||||||||||||||
| Cash and due from banks | $175,259 | $297,039 | $127,743 | $166,960 | $194,143 | ||||||||||||
| Short-term investments | 3,234 | 3,349 | 4,463 | 3,783 | 8,125 | ||||||||||||
Mortgage loans held for sale, at fair value | 40,196 | 48,705 | 31,492 | 77,450 | 61,614 | ||||||||||||
| Available for sale debt securities, at fair value | 1,042,859 | 1,045,833 | 1,052,577 | 948,094 | 894,571 | ||||||||||||
| Federal Home Loan Bank stock, at cost | 13,031 | 15,094 | 22,757 | 24,772 | 30,285 | ||||||||||||
| Loans: | |||||||||||||||||
Total loans | 4,272,925 | 4,286,404 | 4,299,800 | 4,194,666 | 4,195,990 | ||||||||||||
Less: allowance for credit losses on loans | 39,088 | 41,711 | 41,879 | 42,137 | 44,106 | ||||||||||||
Net loans | 4,233,837 | 4,244,693 | 4,257,921 | 4,152,529 | 4,151,884 | ||||||||||||
| Premises and equipment, net | 28,908 | 28,488 | 29,031 | 28,953 | 28,870 | ||||||||||||
| Operating lease right-of-use assets | 26,692 | 27,518 | 28,329 | 28,761 | 29,521 | ||||||||||||
| Investment in bank-owned life insurance | 92,592 | 92,974 | 92,355 | 84,749 | 84,193 | ||||||||||||
| Goodwill | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | ||||||||||||
| Identifiable intangible assets, net | 5,414 | 5,631 | 5,853 | 6,079 | 6,305 | ||||||||||||
| Other assets | 125,196 | 129,410 | 135,550 | 133,350 | 159,749 | ||||||||||||
Total assets | $5,851,127 | $6,002,643 | $5,851,980 | $5,719,389 | $5,713,169 | ||||||||||||
| Liabilities: | |||||||||||||||||
| Deposits: | |||||||||||||||||
Noninterest-bearing deposits | $945,229 | $950,974 | $901,801 | $932,999 | $832,287 | ||||||||||||
Interest-bearing deposits | 4,034,822 | 4,107,168 | 3,823,858 | 3,616,143 | 3,546,066 | ||||||||||||
Total deposits | 4,980,051 | 5,058,142 | 4,725,659 | 4,549,142 | 4,378,353 | ||||||||||||
| Federal Home Loan Bank advances | 145,000 | 222,592 | 408,592 | 466,912 | 593,859 | ||||||||||||
| Junior subordinated debentures | 22,681 | 22,681 | 22,681 | 22,681 | 22,681 | ||||||||||||
| Operating lease liabilities | 29,010 | 29,810 | 30,558 | 30,974 | 31,717 | ||||||||||||
| Other liabilities | 109,577 | 114,100 | 116,634 | 116,081 | 152,364 | ||||||||||||
Total liabilities | 5,286,319 | 5,447,325 | 5,304,124 | 5,185,790 | 5,178,974 | ||||||||||||
| Shareholders’ Equity: | |||||||||||||||||
Common stock | 1,085 | 1,085 | 1,085 | 1,085 | 1,085 | ||||||||||||
| Paid-in capital | 126,511 | 126,265 | 125,442 | 124,882 | 125,610 | ||||||||||||
| Retained earnings | 458,310 | 447,566 | 437,927 | 429,598 | 418,246 | ||||||||||||
| Accumulated other comprehensive (loss) income | (19,981) | (18,128) | (15,128) | (20,006) | (7,391) | ||||||||||||
| Treasury stock, at cost | (1,117) | (1,470) | (1,470) | (1,960) | (3,355) | ||||||||||||
Total shareholders’ equity | 564,808 | 555,318 | 547,856 | 533,599 | 534,195 | ||||||||||||
Total liabilities and shareholders’ equity | $5,851,127 | $6,002,643 | $5,851,980 | $5,719,389 | $5,713,169 | ||||||||||||
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| 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 Twelve Months Ended | |||||||||||||||||||||||||
| Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Dec 31, 2021 | Dec 31, 2020 | ||||||||||||||||||||
| Interest income: | ||||||||||||||||||||||||||
Interest and fees on loans | $36,882 | $35,691 | $34,820 | $34,159 | $34,487 | $141,552 | $145,425 | |||||||||||||||||||
Interest on mortgage loans held for sale | 387 | 298 | 405 | 441 | 569 | 1,531 | 1,762 | |||||||||||||||||||
Taxable interest on debt securities | 3,929 | 3,683 | 3,441 | 3,242 | 3,869 | 14,295 | 20,050 | |||||||||||||||||||
Dividends on Federal Home Loan Bank stock | 98 | 95 | 110 | 133 | 414 | 436 | 2,240 | |||||||||||||||||||
Other interest income | 60 | 56 | 32 | 33 | 35 | 181 | 459 | |||||||||||||||||||
Total interest and dividend income | 41,356 | 39,823 | 38,808 | 38,008 | 39,374 | 157,995 | 169,936 | |||||||||||||||||||
| Interest expense: | ||||||||||||||||||||||||||
Deposits | 2,977 | 2,789 | 2,961 | 3,663 | 4,632 | 12,390 | 25,812 | |||||||||||||||||||
Federal Home Loan Bank advances | 547 | 872 | 1,001 | 1,380 | 2,305 | 3,800 | 15,806 | |||||||||||||||||||
Junior subordinated debentures | 92 | 92 | 92 | 94 | 122 | 370 | 641 | |||||||||||||||||||
Other interest expense | — | — | — | — | 72 | — | 233 | |||||||||||||||||||
Total interest expense | 3,616 | 3,753 | 4,054 | 5,137 | 7,131 | 16,560 | 42,492 | |||||||||||||||||||
| Net interest income | 37,740 | 36,070 | 34,754 | 32,871 | 32,243 | 141,435 | 127,444 | |||||||||||||||||||
| Provision for credit losses | (2,822) | — | — | (2,000) | 1,781 | (4,822) | 12,342 | |||||||||||||||||||
| Net interest income after provision for credit losses | 40,562 | 36,070 | 34,754 | 34,871 | 30,462 | 146,257 | 115,102 | |||||||||||||||||||
| Noninterest income: | ||||||||||||||||||||||||||
Wealth management revenues | 10,504 | 10,455 | 10,428 | 9,895 | 9,206 | 41,282 | 35,454 | |||||||||||||||||||
Mortgage banking revenues | 4,332 | 6,373 | 5,994 | 11,927 | 14,077 | 28,626 | 47,377 | |||||||||||||||||||
Card interchange fees | 1,282 | 1,265 | 1,316 | 1,133 | 1,148 | 4,996 | 4,287 | |||||||||||||||||||
Service charges on deposit accounts | 766 | 673 | 635 | 609 | 767 | 2,683 | 2,742 | |||||||||||||||||||
Loan related derivative income | 1,972 | 728 | 1,175 | 467 | 173 | 4,342 | 3,991 | |||||||||||||||||||
Income from bank-owned life insurance | 1,144 | 618 | 607 | 556 | 569 | 2,925 | 2,491 | |||||||||||||||||||
Other income | 307 | 408 | 438 | 1,387 | 1,787 | 2,540 | 3,100 | |||||||||||||||||||
Total noninterest income | 20,307 | 20,520 | 20,593 | 25,974 | 27,727 | 87,394 | 99,442 | |||||||||||||||||||
| Noninterest expense: | ||||||||||||||||||||||||||
Salaries and employee benefits | 21,524 | 22,162 | 22,082 | 21,527 | 22,075 | 87,295 | 82,899 | |||||||||||||||||||
Outsourced services | 3,585 | 3,294 | 3,217 | 3,200 | 2,950 | 13,296 | 11,894 | |||||||||||||||||||
Net occupancy | 2,145 | 2,134 | 2,042 | 2,128 | 2,083 | 8,449 | 8,023 | |||||||||||||||||||
Equipment | 959 | 977 | 975 | 994 | 1,025 | 3,905 | 3,831 | |||||||||||||||||||
Legal, audit and professional fees | 817 | 767 | 678 | 597 | 1,014 | 2,859 | 3,747 | |||||||||||||||||||
FDIC deposit insurance costs | 391 | 482 | 374 | 345 | 330 | 1,592 | 1,818 | |||||||||||||||||||
Advertising and promotion | 502 | 559 | 560 | 222 | 640 | 1,843 | 1,469 | |||||||||||||||||||
Amortization of intangibles | 216 | 223 | 225 | 226 | 226 | 890 | 914 | |||||||||||||||||||
Debt prepayment penalties | 2,700 | — | 895 | 3,335 | 1,413 | 6,930 | 1,413 | |||||||||||||||||||
Other expenses | 2,380 | 1,922 | 1,964 | 2,139 | 2,353 | 8,405 | 9,376 | |||||||||||||||||||
Total noninterest expense | 35,219 | 32,520 | 33,012 | 34,713 | 34,109 | 135,464 | 125,384 | |||||||||||||||||||
| Income before income taxes | 25,650 | 24,070 | 22,335 | 26,132 | 24,080 | 98,187 | 89,160 | |||||||||||||||||||
| Income tax expense | 5,462 | 5,319 | 4,875 | 5,661 | 5,514 | 21,317 | 19,331 | |||||||||||||||||||
Net income | $20,188 | $18,751 | $17,460 | $20,471 | $18,566 | $76,870 | $69,829 | |||||||||||||||||||
| Net income available to common shareholders | $20,128 | $18,697 | $17,408 | $20,415 | $18,524 | $76,648 | $69,678 | |||||||||||||||||||
| Weighted average common shares outstanding: | ||||||||||||||||||||||||||
| Basic | 17,328 | 17,320 | 17,314 | 17,275 | 17,264 | 17,310 | 17,282 | |||||||||||||||||||
| Diluted | 17,469 | 17,444 | 17,436 | 17,431 | 17,360 | 17,455 | 17,402 | |||||||||||||||||||
| Earnings per common share: | ||||||||||||||||||||||||||
| Basic | $1.16 | $1.08 | $1.01 | $1.18 | $1.07 | $4.43 | $4.03 | |||||||||||||||||||
| Diluted | $1.15 | $1.07 | $1.00 | $1.17 | $1.07 | $4.39 | $4.00 | |||||||||||||||||||
| Cash dividends declared per share | $0.54 | $0.52 | $0.52 | $0.52 | $0.52 | $2.10 | $2.05 | |||||||||||||||||||
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| Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||
| SELECTED FINANCIAL HIGHLIGHTS | |||||||||||||||||
| (Unaudited; Dollars and shares in thousands, except per share amounts) | |||||||||||||||||
| Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | |||||||||||||
| Share and Equity Related Data: | |||||||||||||||||
| Book value per share | $32.59 | $32.06 | $31.63 | $30.83 | $30.94 | ||||||||||||
Tangible book value per share - Non-GAAP (1) | $28.59 | $28.05 | $27.60 | $26.79 | $26.87 | ||||||||||||
| Market value per share | $56.37 | $52.98 | $51.35 | $51.63 | $44.80 | ||||||||||||
| Shares issued at end of period | 17,363 | 17,363 | 17,363 | 17,363 | 17,363 | ||||||||||||
| Shares outstanding at end of period | 17,331 | 17,320 | 17,320 | 17,306 | 17,265 | ||||||||||||
Capital Ratios (2): | |||||||||||||||||
| Tier 1 risk-based capital | 13.24 | % | 13.01 | % | 12.82 | % | 12.99 | % | 12.61 | % | |||||||
| Total risk-based capital | 14.01 | % | 13.83 | % | 13.65 | % | 13.85 | % | 13.51 | % | |||||||
| Tier 1 leverage ratio | 9.36 | % | 9.12 | % | 9.07 | % | 9.11 | % | 8.95 | % | |||||||
| Common equity tier 1 | 12.71 | % | 12.47 | % | 12.28 | % | 12.43 | % | 12.06 | % | |||||||
| Balance Sheet Ratios: | |||||||||||||||||
| Equity to assets | 9.65 | % | 9.25 | % | 9.36 | % | 9.33 | % | 9.35 | % | |||||||
Tangible equity to tangible assets - Non-GAAP (1) | 8.57 | % | 8.19 | % | 8.27 | % | 8.21 | % | 8.22 | % | |||||||
Loans to deposits (3) | 85.8 | % | 84.9 | % | 90.8 | % | 93.0 | % | 96.2 | % | |||||||
| For the Twelve Months Ended | ||||||||||||||||||||||||||
| For the Three Months Ended | ||||||||||||||||||||||||||
| Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Dec 31, 2021 | Dec 31, 2020 | ||||||||||||||||||||
Performance Ratios (4): | ||||||||||||||||||||||||||
Net interest margin (5) | 2.71 | % | 2.58 | % | 2.55 | % | 2.51 | % | 2.39 | % | 2.59 | % | 2.40 | % | ||||||||||||
Return on average assets (net income divided by average assets) | 1.36 | % | 1.26 | % | 1.20 | % | 1.45 | % | 1.28 | % | 1.32 | % | 1.22 | % | ||||||||||||
Return on average tangible assets - Non-GAAP (1) | 1.38 | % | 1.27 | % | 1.22 | % | 1.47 | % | 1.30 | % | 1.33 | % | 1.24 | % | ||||||||||||
Return on average equity (net income available for common shareholders divided by average equity) | 14.34 | % | 13.37 | % | 12.92 | % | 15.55 | % | 13.96 | % | 14.03 | % | 13.51 | % | ||||||||||||
Return on average tangible equity - Non-GAAP (1) | 16.39 | % | 15.29 | % | 14.84 | % | 17.91 | % | 16.10 | % | 16.09 | % | 15.66 | % | ||||||||||||
Efficiency ratio (6) | 60.7 | % | 57.5 | % | 59.6 | % | 59.0 | % | 56.9 | % | 59.2 | % | 55.3 | % | ||||||||||||
(1)See the section labeled “Supplemental Information - Calculation of Non-GAAP Financial Measures” at the end of this document.
(2)Estimated for December 31, 2021 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).
-9-
| Washington Trust Bancorp, Inc. and Subsidiaries | ||||||||||||||||||||||||||
| SELECTED FINANCIAL HIGHLIGHTS | ||||||||||||||||||||||||||
| (Unaudited; Dollars in thousands) | ||||||||||||||||||||||||||
| For the Three Months Ended | For the Twelve Months Ended | |||||||||||||||||||||||||
| Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Dec 31, 2021 | Dec 31, 2020 | ||||||||||||||||||||
| Wealth Management Results | ||||||||||||||||||||||||||
| Wealth Management Revenues: | ||||||||||||||||||||||||||
| Asset-based revenues | $10,417 | $10,224 | $9,991 | $9,583 | $9,066 | $40,215 | $34,363 | |||||||||||||||||||
| Transaction-based revenues | 87 | 231 | 437 | 312 | 140 | 1,067 | 1,091 | |||||||||||||||||||
| Total wealth management revenues | $10,504 | $10,455 | $10,428 | $9,895 | $9,206 | $41,282 | $35,454 | |||||||||||||||||||
| Assets Under Administration (AUA): | ||||||||||||||||||||||||||
| Balance at beginning of period | $7,443,396 | $7,441,519 | $7,049,226 | $6,866,737 | $6,395,652 | $6,866,737 | $6,235,801 | |||||||||||||||||||
Net investment appreciation (depreciation) & income | 358,796 | (4,830) | 368,383 | 208,953 | 540,189 | 931,302 | 774,265 | |||||||||||||||||||
| Net client asset inflows (outflows) | (17,981) | 6,707 | 23,910 | (26,464) | (69,104) | (13,828) | (143,329) | |||||||||||||||||||
| Balance at end of period | $7,784,211 | $7,443,396 | $7,441,519 | $7,049,226 | $6,866,737 | $7,784,211 | $6,866,737 | |||||||||||||||||||
Percentage of AUA that are managed assets | 92% | 91% | 92% | 91% | 91% | 92% | 91% | |||||||||||||||||||
| Mortgage Banking Results | ||||||||||||||||||||||||||
| Mortgage Banking Revenues: | ||||||||||||||||||||||||||
Realized gains on loan sales, net (1) | $5,695 | $5,750 | $8,562 | $13,745 | $13,394 | $33,752 | $42,008 | |||||||||||||||||||
Changes in fair value, net (2) | (1,594) | 467 | (2,543) | (1,888) | 813 | (5,558) | 5,998 | |||||||||||||||||||
Loan servicing fee income, net (3) | 231 | 156 | (25) | 70 | (130) | 432 | (629) | |||||||||||||||||||
| Total mortgage banking revenues | $4,332 | $6,373 | $5,994 | $11,927 | $14,077 | $28,626 | $47,377 | |||||||||||||||||||
| Residential Mortgage Loan Originations: | ||||||||||||||||||||||||||
Originations for retention in portfolio (4) | $174,438 | $205,293 | $244,821 | $131,791 | $134,002 | $756,343 | $502,120 | |||||||||||||||||||
Originations for sale to secondary market (5) | 188,735 | 190,702 | 244,562 | 309,325 | 312,226 | 933,324 | 1,171,906 | |||||||||||||||||||
| Total mortgage loan originations | $363,173 | $395,995 | $489,383 | $441,116 | $446,228 | $1,689,667 | $1,674,026 | |||||||||||||||||||
| Residential Mortgage Loans Sold: | ||||||||||||||||||||||||||
| Sold with servicing rights retained | $21,180 | $108,445 | $235,280 | $226,645 | $240,104 | $591,550 | $849,467 | |||||||||||||||||||
Sold with servicing rights released (5) | 175,818 | 65,416 | 55,278 | 65,374 | 78,072 | 361,886 | 290,294 | |||||||||||||||||||
| Total mortgage loans sold | $196,998 | $173,861 | $290,558 | $292,019 | $318,176 | $953,436 | $1,139,761 | |||||||||||||||||||
(1)Includes gains on loan sales, commission income on loans originated for others, servicing right gains, and gains (losses) on forward loan commitments.
(2)Represents fair value changes on mortgage loans held for sale and forward loan commitments.
(3)Represents loan servicing fee income, net of servicing right amortization and valuation adjustments.
(4)Includes the full commitment amount of homeowner construction loans.
(5)Includes brokered loans (loans originated for others).
-10-
| Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||
| END OF PERIOD LOAN COMPOSITION | |||||||||||||||||
| (Unaudited; Dollars in thousands) | |||||||||||||||||
| Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | |||||||||||||
| Loans: | |||||||||||||||||
| Commercial real estate (1) | $1,639,062 | $1,661,785 | $1,669,624 | $1,618,540 | $1,633,024 | ||||||||||||
| Commercial & industrial | 641,555 | 682,774 | 764,509 | 840,585 | 817,408 | ||||||||||||
| Total commercial | 2,280,617 | 2,344,559 | 2,434,133 | 2,459,125 | 2,450,432 | ||||||||||||
| Residential real estate (2) | 1,726,975 | 1,672,364 | 1,590,389 | 1,457,490 | 1,467,312 | ||||||||||||
| Home equity | 247,697 | 249,874 | 254,802 | 256,799 | 259,185 | ||||||||||||
| Other | 17,636 | 19,607 | 20,476 | 21,252 | 19,061 | ||||||||||||
| Total consumer | 265,333 | 269,481 | 275,278 | 278,051 | 278,246 | ||||||||||||
| Total loans | $4,272,925 | $4,286,404 | $4,299,800 | $4,194,666 | $4,195,990 | ||||||||||||
(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.
| December 31, 2021 | December 31, 2020 | ||||||||||||||||||||||
| Count | Balance | % of Total | Count | Balance | % of Total | ||||||||||||||||||
| Commercial Real Estate Portfolio Segmentation: | |||||||||||||||||||||||
| Multi-family dwelling | 127 | $474,229 | 29 | % | 137 | $524,874 | 32 | % | |||||||||||||||
| Retail | 121 | 389,487 | 24 | 136 | 339,569 | 21 | |||||||||||||||||
| Office | 57 | 216,602 | 13 | 73 | 290,756 | 18 | |||||||||||||||||
| Hospitality | 31 | 184,990 | 11 | 40 | 157,720 | 10 | |||||||||||||||||
| Industrial and warehouse | 35 | 137,254 | 8 | 28 | 97,055 | 6 | |||||||||||||||||
| Healthcare | 13 | 128,189 | 8 | 15 | 109,321 | 7 | |||||||||||||||||
| Commercial mixed use | 20 | 38,978 | 2 | 22 | 42,405 | 2 | |||||||||||||||||
| Other | 36 | 69,333 | 5 | 38 | 71,324 | 4 | |||||||||||||||||
Commercial real estate loans | 440 | $1,639,062 | 100 | % | 489 | $1,633,024 | 100 | % | |||||||||||||||
| Commercial & Industrial Portfolio Segmentation: | |||||||||||||||||||||||
| Healthcare and social assistance | 101 | $174,376 | 27 | % | 253 | $200,217 | 24 | % | |||||||||||||||
| Owner occupied and other real estate | 185 | 72,957 | 11 | 268 | 74,309 | 9 | |||||||||||||||||
| Manufacturing | 65 | 55,341 | 9 | 146 | 88,802 | 11 | |||||||||||||||||
| Educational services | 28 | 52,211 | 8 | 53 | 64,969 | 8 | |||||||||||||||||
| Retail | 79 | 47,290 | 7 | 192 | 63,895 | 8 | |||||||||||||||||
Transportation and warehousing | 31 | 35,064 | 5 | 42 | 24,061 | 3 | |||||||||||||||||
Entertainment and recreation | 37 | 32,087 | 5 | 91 | 29,415 | 4 | |||||||||||||||||
Finance and insurance | 59 | 31,279 | 5 | 106 | 26,244 | 3 | |||||||||||||||||
| Accommodation and food services | 114 | 28,320 | 4 | 271 | 47,020 | 6 | |||||||||||||||||
Information | 14 | 25,045 | 4 | 32 | 28,394 | 3 | |||||||||||||||||
Professional, scientific and technical | 69 | 8,912 | 1 | 265 | 39,295 | 5 | |||||||||||||||||
Public administration | 16 | 5,441 | 1 | 26 | 23,319 | 3 | |||||||||||||||||
Other | 281 | 73,232 | 13 | 772 | 107,468 | 13 | |||||||||||||||||
Commercial & industrial loans | 1,079 | $641,555 | 100 | % | 2,517 | $817,408 | 100 | % | |||||||||||||||
-11-
| Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||||||||
| SUPPLEMENTAL LOAN PORTFOLIO INFORMATION | |||||||||||||||||||||||
| (Unaudited; Dollars in thousands) | |||||||||||||||||||||||
| December 31, 2021 | December 31, 2020 | ||||||||||||||||||||||
| Count | Balance | % of Total | Count | Balance | % of Total | ||||||||||||||||||
| PPP Loans By Industry: | |||||||||||||||||||||||
| Accommodation and food services | 69 | $13,687 | 36 | % | 209 | $23,678 | 12 | % | |||||||||||||||
| Healthcare and social assistance | 36 | 6,926 | 18 | 173 | 47,354 | 24 | |||||||||||||||||
Professional, scientific and technical | 34 | 2,464 | 6 | 220 | 20,031 | 10 | |||||||||||||||||
Information | 6 | 2,034 | 5 | 20 | 2,478 | 1 | |||||||||||||||||
| Retail | 22 | 1,698 | 4 | 134 | 12,107 | 6 | |||||||||||||||||
Entertainment and recreation | 12 | 1,693 | 4 | 61 | 3,386 | 2 | |||||||||||||||||
| Manufacturing | 11 | 1,274 | 3 | 89 | 23,321 | 12 | |||||||||||||||||
| Owner occupied and other real estate | 20 | 709 | 2 | 115 | 9,241 | 5 | |||||||||||||||||
| Educational services | 8 | 312 | 1 | 32 | 9,681 | 5 | |||||||||||||||||
Finance and insurance | 6 | 299 | 1 | 55 | 2,000 | 1 | |||||||||||||||||
Transportation and warehousing | 9 | 138 | — | 21 | 2,059 | 1 | |||||||||||||||||
Public administration | 1 | 21 | — | 4 | 483 | — | |||||||||||||||||
Other | 113 | 6,764 | 20 | 573 | 43,961 | 21 | |||||||||||||||||
Total PPP loans (included in the commercial & industrial loan portfolio) | 347 | $38,019 | 100 | % | 1,706 | $199,780 | 100 | % | |||||||||||||||
| Average PPP loan size | $110 | $117 | |||||||||||||||||||||
| Net unamortized fees on PPP loans | $1,267 | $3,893 | |||||||||||||||||||||
| December 31, 2021 | September 30, 2021 | ||||||||||||||||||||||
| Count | Balance | % of Outstanding Balance, excl PPP loans (1) | Count | Balance | % of Outstanding Balance, excl PPP loans (1) | ||||||||||||||||||
| Active Loan Deferments by Portfolio: | |||||||||||||||||||||||
Commercial real estate deferments | 2 | $9,720 | 1 | % | 5 | $37,955 | 2 | % | |||||||||||||||
Commercial & industrial deferments | — | — | — | — | — | — | |||||||||||||||||
| Total commercial deferments | 2 | 9,720 | 1 | 5 | 37,955 | 2 | |||||||||||||||||
| Residential real estate deferments | — | — | — | — | — | — | |||||||||||||||||
| Total consumer deferments | — | — | — | — | — | — | |||||||||||||||||
| Total active loan deferments | 2 | $9,720 | — | % | 5 | $37,955 | 1 | % | |||||||||||||||
(1)Percent of respective outstanding portfolio segment balance excluding balance of PPP loans.
-12-
| Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||
| END OF PERIOD LOAN AND DEPOSIT COMPOSITION | |||||||||||||||||
| (Unaudited; Dollars in thousands) | |||||||||||||||||
| December 31, 2021 | December 31, 2020 | ||||||||||||||||
| Balance | % of Total | Balance | % of Total | ||||||||||||||
| Commercial Real Estate Loans by Property Location: | |||||||||||||||||
| Connecticut | $643,182 | 39 | % | $649,919 | 40 | % | |||||||||||
| Massachusetts | 464,018 | 28 | 468,947 | 29 | |||||||||||||
| Rhode Island | 408,496 | 25 | 431,133 | 26 | |||||||||||||
Subtotal | 1,515,696 | 92 | 1,549,999 | 95 | |||||||||||||
| All other states | 123,366 | 8 | 83,025 | 5 | |||||||||||||
Total commercial real estate loans | $1,639,062 | 100 | % | $1,633,024 | 100 | % | |||||||||||
Residential Real Estate Loans by Property Location: | |||||||||||||||||
Massachusetts | $1,207,789 | 70 | % | $994,800 | 68 | % | |||||||||||
Rhode Island | 365,831 | 21 | 331,713 | 23 | |||||||||||||
Connecticut | 132,430 | 8 | 122,102 | 8 | |||||||||||||
Subtotal | 1,706,050 | 99 | 1,448,615 | 99 | |||||||||||||
All other states | 20,925 | 1 | 18,697 | 1 | |||||||||||||
Total residential real estate loans | $1,726,975 | 100 | % | $1,467,312 | 100 | % | |||||||||||
| Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | |||||||||||||
| Deposits: | |||||||||||||||||
| Noninterest-bearing demand deposits | $945,229 | $950,974 | $901,801 | $932,999 | $832,287 | ||||||||||||
| Interest-bearing demand deposits | 251,032 | 238,317 | 174,165 | 171,571 | 174,290 | ||||||||||||
| NOW accounts | 867,138 | 817,937 | 774,693 | 745,376 | 698,706 | ||||||||||||
| Money market accounts | 1,072,864 | 1,046,324 | 941,511 | 950,413 | 910,167 | ||||||||||||
| Savings accounts | 555,177 | 540,306 | 524,155 | 511,759 | 466,507 | ||||||||||||
| Time deposits (in-market) | 773,383 | 709,288 | 677,061 | 701,524 | 704,855 | ||||||||||||
In-market deposits | 4,464,823 | 4,303,146 | 3,993,386 | 4,013,642 | 3,786,812 | ||||||||||||
| Wholesale brokered time deposits | 515,228 | 754,996 | 732,273 | 535,500 | 591,541 | ||||||||||||
Total deposits | $4,980,051 | $5,058,142 | $4,725,659 | $4,549,142 | $4,378,353 | ||||||||||||
-13-
| Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||
| CREDIT & ASSET QUALITY DATA | |||||||||||||||||
| (Unaudited; Dollars in thousands) | |||||||||||||||||
| Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | |||||||||||||
| Asset Quality Ratios: | |||||||||||||||||
| Nonperforming assets to total assets | 0.24 | % | 0.18 | % | 0.18 | % | 0.23 | % | 0.23 | % | |||||||
| Nonaccrual loans to total loans | 0.33 | % | 0.26 | % | 0.24 | % | 0.31 | % | 0.31 | % | |||||||
| Total past due loans to total loans | 0.24 | % | 0.22 | % | 0.20 | % | 0.26 | % | 0.30 | % | |||||||
| Allowance for credit losses on loans to nonaccrual loans | 275.21 | % | 380.02 | % | 399.57 | % | 324.56 | % | 334.21 | % | |||||||
| Allowance for credit losses on loans to total loans | 0.91 | % | 0.97 | % | 0.97 | % | 1.00 | % | 1.05 | % | |||||||
| Nonperforming Assets: | |||||||||||||||||
| Commercial real estate | $— | $— | $— | $— | $— | ||||||||||||
| Commercial & industrial | — | — | 539 | — | — | ||||||||||||
| Total commercial | — | — | 539 | — | — | ||||||||||||
| Residential real estate | 13,576 | 10,321 | 8,926 | 11,748 | 11,981 | ||||||||||||
| Home equity | 627 | 655 | 1,016 | 1,147 | 1,128 | ||||||||||||
| Other consumer | — | — | — | 88 | 88 | ||||||||||||
| Total consumer | 627 | 655 | 1,016 | 1,235 | 1,216 | ||||||||||||
| Total nonaccrual loans | 14,203 | 10,976 | 10,481 | 12,983 | 13,197 | ||||||||||||
| Other real estate owned | — | — | — | — | — | ||||||||||||
| Total nonperforming assets | $14,203 | $10,976 | $10,481 | $12,983 | $13,197 | ||||||||||||
| Past Due Loans (30 days or more past due): | |||||||||||||||||
| Commercial real estate | $— | $— | $— | $— | $265 | ||||||||||||
| Commercial & industrial | 3 | 2 | 540 | 1 | 3 | ||||||||||||
| Total commercial | 3 | 2 | 540 | 1 | 268 | ||||||||||||
| Residential real estate | 9,622 | 8,698 | 6,656 | 9,661 | 10,339 | ||||||||||||
| Home equity | 765 | 824 | 1,231 | 1,131 | 1,667 | ||||||||||||
| Other consumer | 21 | 24 | 28 | 119 | 118 | ||||||||||||
| Total consumer | 786 | 848 | 1,259 | 1,250 | 1,785 | ||||||||||||
| Total past due loans | $10,411 | $9,548 | $8,455 | $10,912 | $12,392 | ||||||||||||
| Accruing loans 90 days or more past due | $— | $— | $— | $— | $— | ||||||||||||
| Nonaccrual loans included in past due loans | $9,359 | $6,930 | $5,773 | $8,356 | $8,521 | ||||||||||||
| Troubled Debt Restructurings: | |||||||||||||||||
| Accruing TDRs | $16,328 | $7,979 | $8,541 | $12,358 | $13,340 | ||||||||||||
| Nonaccrual TDRs | 2,819 | 1,732 | 2,278 | 1,935 | 2,345 | ||||||||||||
| Total TDRs | $19,147 | $9,711 | $10,819 | $14,293 | $15,685 | ||||||||||||
| Washington Trust Bancorp, Inc. and Subsidiaries | ||||||||||||||||||||||||||
| CREDIT & ASSET QUALITY DATA | ||||||||||||||||||||||||||
| (Unaudited; Dollars in thousands) | ||||||||||||||||||||||||||
| For the Three Months Ended | For the Twelve Months Ended | |||||||||||||||||||||||||
| Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Dec 31, 2021 | Dec 31, 2020 | ||||||||||||||||||||
| Nonaccrual Loan Activity: | ||||||||||||||||||||||||||
| Balance at beginning of period | $10,976 | $10,481 | $12,983 | $13,197 | $14,740 | $13,197 | $17,408 | |||||||||||||||||||
| Additions to nonaccrual status | 3,959 | 2,583 | 537 | 734 | 707 | 7,813 | 3,644 | |||||||||||||||||||
| Loans returned to accruing status | (339) | — | (874) | (3) | (1,112) | (1,216) | (3,282) | |||||||||||||||||||
| Loans charged-off | (31) | (249) | (317) | (64) | (246) | (661) | (1,317) | |||||||||||||||||||
| Loans transferred to other real estate owned | — | — | — | — | (285) | — | (313) | |||||||||||||||||||
| Payments, payoffs and other changes | (362) | (1,839) | (1,848) | (881) | (607) | (4,930) | (2,943) | |||||||||||||||||||
| Balance at end of period | $14,203 | $10,976 | $10,481 | $12,983 | $13,197 | $14,203 | $13,197 | |||||||||||||||||||
| Allowance for Credit Losses on Loans: | ||||||||||||||||||||||||||
| Balance at beginning of period | $41,711 | $41,879 | $42,137 | $44,106 | $42,645 | $44,106 | $27,014 | |||||||||||||||||||
| Adoption of CECL accounting standard (Topic 326) | — | — | — | — | — | — | 6,501 | |||||||||||||||||||
Provision for credit losses on loans (1) | (2,650) | — | — | (1,951) | 1,579 | (4,601) | 11,736 | |||||||||||||||||||
| Charge-offs | (33) | (249) | (317) | (64) | (245) | (663) | (1,317) | |||||||||||||||||||
| Recoveries | 60 | 81 | 59 | 46 | 127 | 246 | 172 | |||||||||||||||||||
| Balance at end of period | $39,088 | $41,711 | $41,879 | $42,137 | $44,106 | $39,088 | $44,106 | |||||||||||||||||||
| Allowance for Credit Losses on Unfunded Commitments: | ||||||||||||||||||||||||||
| Balance at beginning of period | $2,333 | $2,333 | $2,333 | $2,382 | $2,180 | $2,382 | $293 | |||||||||||||||||||
| Adoption of CECL accounting standard (Topic 326) | — | — | — | — | — | — | 1,483 | |||||||||||||||||||
Provision for credit losses on unfunded commitments (1) | (172) | — | — | (49) | 202 | (221) | 606 | |||||||||||||||||||
Balance at end of period (2) | $2,161 | $2,333 | $2,333 | $2,333 | $2,382 | $2,161 | $2,382 | |||||||||||||||||||
(1) Included in provision for credit losses in the Consolidated Statements of Income.
(2) Included in other liabilities in the Consolidated Balance Sheets.
| For the Three Months Ended | For the Twelve Months Ended | |||||||||||||||||||||||||
| Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Dec 31, 2021 | Dec 31, 2020 | ||||||||||||||||||||
| Net Loan Charge-Offs (Recoveries): | ||||||||||||||||||||||||||
| Commercial real estate | $— | $— | $— | $— | $133 | $— | $305 | |||||||||||||||||||
| Commercial & industrial | (35) | (2) | 302 | 1 | (12) | 266 | 562 | |||||||||||||||||||
| Total commercial | (35) | (2) | 302 | 1 | 121 | 266 | 867 | |||||||||||||||||||
| Residential real estate | (4) | 52 | (47) | 17 | (20) | 18 | 79 | |||||||||||||||||||
| Home equity | (12) | 110 | (4) | (2) | 9 | 92 | 172 | |||||||||||||||||||
| Other consumer | 24 | 8 | 7 | 2 | 8 | 41 | 27 | |||||||||||||||||||
| Total consumer | 12 | 118 | 3 | — | 17 | 133 | 199 | |||||||||||||||||||
| Total | ($27) | $168 | $258 | $18 | $118 | $417 | $1,145 | |||||||||||||||||||
| Net charge-offs to average loans (annualized) | — | % | 0.02 | % | 0.02 | % | — | % | 0.01 | % | 0.01 | % | 0.03 | % | ||||||||||||
-14-
The following table presents average balance and interest rate information. Tax-exempt income is converted to a fully taxable equivalent (“FTE”) basis using the statutory federal income tax rate adjusted for applicable state income taxes net of the related federal tax benefit. Unrealized gains (losses) on available for sale securities and changes in fair value on mortgage loans held for sale are excluded from the average balance and yield calculations. Nonaccrual loans, as well as interest recognized on these loans, are included in amounts presented for loans.
| Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||||||||||||||||||||
| CONSOLIDATED AVERAGE BALANCE SHEETS (FTE Basis) | |||||||||||||||||||||||||||||||||||
| (Unaudited; Dollars in thousands) | |||||||||||||||||||||||||||||||||||
| For the Three Months Ended | December 31, 2021 | September 30, 2021 | 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 | $190,291 | $60 | 0.13 | % | $179,574 | $56 | 0.12 | % | $10,717 | $4 | 0.01 | % | |||||||||||||||||||||||
| Mortgage loans held for sale | 50,425 | 387 | 3.04 | 41,261 | 298 | 2.87 | 9,164 | 89 | 0.17 | ||||||||||||||||||||||||||
| Taxable debt securities | 1,060,045 | 3,929 | 1.47 | 1,045,997 | 3,683 | 1.40 | 14,048 | 246 | 0.07 | ||||||||||||||||||||||||||
| FHLB stock | 12,986 | 98 | 2.99 | 18,909 | 95 | 1.99 | (5,923) | 3 | 1.00 | ||||||||||||||||||||||||||
| Commercial real estate | 1,657,669 | 14,281 | 3.42 | 1,648,972 | 12,209 | 2.94 | 8,697 | 2,072 | 0.48 | ||||||||||||||||||||||||||
| Commercial & industrial | 630,805 | 6,960 | 4.38 | 736,073 | 7,886 | 4.25 | (105,268) | (926) | 0.13 | ||||||||||||||||||||||||||
Total commercial | 2,288,474 | 21,241 | 3.68 | 2,385,045 | 20,095 | 3.34 | (96,571) | 1,146 | 0.34 | ||||||||||||||||||||||||||
Residential real estate | 1,689,949 | 13,636 | 3.20 | 1,623,913 | 13,511 | 3.30 | 66,036 | 125 | (0.10) | ||||||||||||||||||||||||||
| Home equity | 249,336 | 1,992 | 3.17 | 252,938 | 2,043 | 3.20 | (3,602) | (51) | (0.03) | ||||||||||||||||||||||||||
| Other | 18,171 | 224 | 4.89 | 19,822 | 247 | 4.94 | (1,651) | (23) | (0.05) | ||||||||||||||||||||||||||
| Total consumer | 267,507 | 2,216 | 3.29 | 272,760 | 2,290 | 3.33 | (5,253) | (74) | (0.04) | ||||||||||||||||||||||||||
Total loans | 4,245,930 | 37,093 | 3.47 | 4,281,718 | 35,896 | 3.33 | (35,788) | 1,197 | 0.14 | ||||||||||||||||||||||||||
Total interest-earning assets | 5,559,677 | 41,567 | 2.97 | 5,567,459 | 40,028 | 2.85 | (7,782) | 1,539 | 0.12 | ||||||||||||||||||||||||||
| Noninterest-earning assets | 324,904 | 351,678 | (26,774) | ||||||||||||||||||||||||||||||||
Total assets | $5,884,581 | $5,919,137 | ($34,556) | ||||||||||||||||||||||||||||||||
| Liabilities and Shareholders' Equity: | |||||||||||||||||||||||||||||||||||
| Interest-bearing demand deposits | $238,390 | $63 | 0.10 | % | $206,237 | $51 | 0.10 | % | $32,153 | $12 | — | % | |||||||||||||||||||||||
| NOW accounts | 819,590 | 142 | 0.07 | 782,963 | 129 | 0.07 | 36,627 | 13 | — | ||||||||||||||||||||||||||
| Money market accounts | 1,059,846 | 561 | 0.21 | 1,014,204 | 586 | 0.23 | 45,642 | (25) | (0.02) | ||||||||||||||||||||||||||
| Savings accounts | 544,981 | 70 | 0.05 | 530,956 | 70 | 0.05 | 14,025 | — | — | ||||||||||||||||||||||||||
| Time deposits (in-market) | 746,887 | 1,927 | 1.02 | 672,012 | 1,695 | 1.00 | 74,875 | 232 | 0.02 | ||||||||||||||||||||||||||
| Total interest-bearing in-market deposits | 3,409,694 | 2,763 | 0.32 | 3,206,372 | 2,531 | 0.31 | 203,322 | 232 | 0.01 | ||||||||||||||||||||||||||
| Wholesale brokered time deposits | 611,467 | 214 | 0.14 | 722,233 | 258 | 0.14 | (110,766) | (44) | — | ||||||||||||||||||||||||||
| Total interest-bearing deposits | 4,021,161 | 2,977 | 0.29 | 3,928,605 | 2,789 | 0.28 | 92,556 | 188 | 0.01 | ||||||||||||||||||||||||||
| FHLB advances | 171,079 | 547 | 1.27 | 317,766 | 872 | 1.09 | (146,687) | (325) | 0.18 | ||||||||||||||||||||||||||
| Junior subordinated debentures | 22,681 | 92 | 1.61 | 22,681 | 92 | 1.61 | — | — | — | ||||||||||||||||||||||||||
| PPPLF borrowings | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Total interest-bearing liabilities | 4,214,921 | 3,616 | 0.34 | 4,269,052 | 3,753 | 0.35 | (54,131) | (137) | (0.01) | ||||||||||||||||||||||||||
| Noninterest-bearing demand deposits | 981,706 | 952,676 | 29,030 | ||||||||||||||||||||||||||||||||
| Other liabilities | 131,189 | 142,562 | (11,373) | ||||||||||||||||||||||||||||||||
| Shareholders' equity | 556,765 | 554,847 | 1,918 | ||||||||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $5,884,581 | $5,919,137 | ($34,556) | ||||||||||||||||||||||||||||||||
Net interest income (FTE) | $37,951 | $36,275 | $1,676 | ||||||||||||||||||||||||||||||||
| Interest rate spread | 2.63 | % | 2.50 | % | 0.13 | % | |||||||||||||||||||||||||||||
| Net interest margin | 2.71 | % | 2.58 | % | 0.13 | % | |||||||||||||||||||||||||||||
Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:
| For the Three Months Ended | Dec 31, 2021 | Sep 30, 2021 | Change | ||||||||
| Commercial loans | $211 | $205 | $6 | ||||||||
| Total | $211 | $205 | $6 | ||||||||
-15-
| Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||||||||||||||
| CONSOLIDATED AVERAGE BALANCE SHEETS (FTE Basis) | |||||||||||||||||||||||||||||
| (Unaudited; Dollars in thousands) | |||||||||||||||||||||||||||||
| For the Twelve Months Ended | December 31, 2021 | December 31, 2020 | 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 | $167,898 | $181 | 0.11 | % | $160,427 | $459 | 0.29 | % | $7,471 | ($278) | (0.18 | %) | |||||||||||||||||
| Mortgage loans for sale | 52,580 | 1,531 | 2.91 | 54,237 | 1,762 | 3.25 | (1,657) | (231) | (0.34) | ||||||||||||||||||||
| Taxable debt securities | 1,013,445 | 14,295 | 1.41 | 902,278 | 20,050 | 2.22 | 111,167 | (5,755) | (0.81) | ||||||||||||||||||||
| FHLB stock | 21,422 | 436 | 2.04 | 45,235 | 2,240 | 4.95 | (23,813) | (1,804) | (2.91) | ||||||||||||||||||||
| Commercial real estate | 1,643,107 | 49,551 | 3.02 | 1,632,460 | 52,231 | 3.20 | 10,647 | (2,680) | (0.18) | ||||||||||||||||||||
| Commercial & industrial | 752,934 | 30,824 | 4.09 | 767,176 | 27,410 | 3.57 | (14,242) | 3,414 | 0.52 | ||||||||||||||||||||
Total commercial | 2,396,041 | 80,375 | 3.35 | 2,399,636 | 79,641 | 3.32 | (3,595) | 734 | 0.03 | ||||||||||||||||||||
Residential real estate | 1,571,459 | 52,884 | 3.37 | 1,488,343 | 55,866 | 3.75 | 83,116 | (2,982) | (0.38) | ||||||||||||||||||||
| Home equity | 254,289 | 8,212 | 3.23 | 277,296 | 10,032 | 3.62 | (23,007) | (1,820) | (0.39) | ||||||||||||||||||||
| Other | 19,765 | 966 | 4.89 | 18,929 | 941 | 4.97 | 836 | 25 | (0.08) | ||||||||||||||||||||
| Total consumer | 274,054 | 9,178 | 3.35 | 296,225 | 10,973 | 3.70 | (22,171) | (1,795) | (0.35) | ||||||||||||||||||||
Total loans | 4,241,554 | 142,437 | 3.36 | 4,184,204 | 146,480 | 3.50 | 57,350 | (4,043) | (0.14) | ||||||||||||||||||||
Total interest-earning assets | 5,496,899 | 158,880 | 2.89 | 5,346,381 | 170,991 | 3.20 | 150,518 | (12,111) | (0.31) | ||||||||||||||||||||
| Noninterest-earning assets | 341,067 | 358,569 | (17,502) | ||||||||||||||||||||||||||
Total assets | $5,837,966 | $5,704,950 | $133,016 | ||||||||||||||||||||||||||
| Liabilities and Shareholders' Equity: | |||||||||||||||||||||||||||||
| Interest-bearing demand deposits | $202,929 | $259 | 0.13 | % | $159,366 | $806 | 0.51 | % | $43,563 | ($547) | (0.38 | %) | |||||||||||||||||
| NOW accounts | 765,584 | 491 | 0.06 | 593,105 | 368 | 0.06 | 172,479 | 123 | — | ||||||||||||||||||||
| Money market accounts | 984,278 | 2,413 | 0.25 | 839,915 | 5,402 | 0.64 | 144,363 | (2,989) | (0.39) | ||||||||||||||||||||
| Savings accounts | 521,143 | 282 | 0.05 | 415,741 | 265 | 0.06 | 105,402 | 17 | (0.01) | ||||||||||||||||||||
| Time deposits (in-market) | 702,303 | 7,749 | 1.10 | 742,236 | 13,138 | 1.77 | (39,933) | (5,389) | (0.67) | ||||||||||||||||||||
| Total interest-bearing in-market deposits | 3,176,237 | 11,194 | 0.35 | 2,750,363 | 19,979 | 0.73 | 425,874 | (8,785) | (0.38) | ||||||||||||||||||||
| Wholesale brokered time deposits | 644,151 | 1,196 | 0.19 | 501,306 | 5,833 | 1.16 | 142,845 | (4,637) | (0.97) | ||||||||||||||||||||
| Total interest-bearing deposits | 3,820,388 | 12,390 | 0.32 | 3,251,669 | 25,812 | 0.79 | 568,719 | (13,422) | (0.47) | ||||||||||||||||||||
| FHLB advances | 370,881 | 3,800 | 1.02 | 920,704 | 15,806 | 1.72 | (549,823) | (12,006) | (0.70) | ||||||||||||||||||||
| Junior subordinated debentures | 22,681 | 370 | 1.63 | 22,681 | 641 | 2.83 | — | (271) | (1.20) | ||||||||||||||||||||
| PPPLF borrowings | — | — | — | 66,492 | 233 | 0.35 | (66,492) | (233) | (0.35) | ||||||||||||||||||||
Total interest-bearing liabilities | 4,213,950 | 16,560 | 0.39 | 4,261,546 | 42,492 | 1.00 | (47,596) | (25,932) | (0.61) | ||||||||||||||||||||
| Noninterest-bearing demand deposits | 934,626 | 759,841 | 174,785 | ||||||||||||||||||||||||||
| Other liabilities | 143,197 | 167,861 | (24,664) | ||||||||||||||||||||||||||
| Shareholders' equity | 546,193 | 515,702 | 30,491 | ||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $5,837,966 | $5,704,950 | $133,016 | ||||||||||||||||||||||||||
Net interest income (FTE) | $142,320 | $128,499 | $13,821 | ||||||||||||||||||||||||||
| Interest rate spread | 2.50 | % | 2.20 | % | 0.30 | % | |||||||||||||||||||||||
| Net interest margin | 2.59 | % | 2.40 | % | 0.19 | % | |||||||||||||||||||||||
Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:
| For the Twelve Months Ended | Dec 31, 2021 | Dec 31, 2020 | Change | ||||||||
| Commercial loans | $885 | $1,055 | ($170) | ||||||||
| Total | $885 | $1,055 | ($170) | ||||||||
-16-
| Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||
| SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures | |||||||||||||||||
| (Unaudited; Dollars in thousands, except per share amounts) | |||||||||||||||||
| Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | |||||||||||||
| Tangible Book Value per Share: | |||||||||||||||||
| Total shareholders' equity, as reported | $564,808 | $555,318 | $547,856 | $533,599 | $534,195 | ||||||||||||
| Less: | |||||||||||||||||
Goodwill | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | ||||||||||||
Identifiable intangible assets, net | 5,414 | 5,631 | 5,853 | 6,079 | 6,305 | ||||||||||||
| Total tangible shareholders' equity | $495,485 | $485,778 | $478,094 | $463,611 | $463,981 | ||||||||||||
| Shares outstanding, as reported | 17,331 | 17,320 | 17,320 | 17,306 | 17,265 | ||||||||||||
| Book value per share - GAAP | $32.59 | $32.06 | $31.63 | $30.83 | $30.94 | ||||||||||||
| Tangible book value per share - Non-GAAP | $28.59 | $28.05 | $27.60 | $26.79 | $26.87 | ||||||||||||
| Tangible Equity to Tangible Assets: | |||||||||||||||||
| Total tangible shareholders' equity | $495,485 | $485,778 | $478,094 | $463,611 | $463,981 | ||||||||||||
| Total assets, as reported | $5,851,127 | $6,002,643 | $5,851,980 | $5,719,389 | $5,713,169 | ||||||||||||
| Less: | |||||||||||||||||
Goodwill | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | ||||||||||||
Identifiable intangible assets, net | 5,414 | 5,631 | 5,853 | 6,079 | 6,305 | ||||||||||||
| Total tangible assets | $5,781,804 | $5,933,103 | $5,782,218 | $5,649,401 | $5,642,955 | ||||||||||||
| Equity to assets - GAAP | 9.65 | % | 9.25 | % | 9.36 | % | 9.33 | % | 9.35 | % | |||||||
| Tangible equity to tangible assets - Non-GAAP | 8.57 | % | 8.19 | % | 8.27 | % | 8.21 | % | 8.22 | % | |||||||
| For the Three Months Ended | For the Twelve Months Ended | |||||||||||||||||||||||||
| Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Dec 31, 2021 | Dec 31, 2020 | ||||||||||||||||||||
| Return on Average Tangible Assets: | ||||||||||||||||||||||||||
| Net income, as reported | $20,188 | $18,751 | $17,460 | $20,471 | $18,566 | $76,870 | $69,829 | |||||||||||||||||||
| Total average assets, as reported | $5,884,581 | $5,919,137 | $5,833,425 | $5,711,931 | $5,768,263 | $5,837,966 | $5,704,950 | |||||||||||||||||||
| Less average balances of: | ||||||||||||||||||||||||||
Goodwill | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | |||||||||||||||||||
Identifiable intangible assets, net | 5,526 | 5,739 | 5,963 | 6,189 | 6,414 | 5,852 | 6,755 | |||||||||||||||||||
| Total average tangible assets | $5,815,146 | $5,849,489 | $5,763,553 | $5,641,833 | $5,697,940 | $5,768,205 | $5,634,286 | |||||||||||||||||||
| Return on average assets - GAAP | 1.36 | % | 1.26 | % | 1.20 | % | 1.45 | % | 1.28 | % | 1.32 | % | 1.22 | % | ||||||||||||
Return on average tangible assets - Non-GAAP | 1.38 | % | 1.27 | % | 1.22 | % | 1.47 | % | 1.30 | % | 1.33 | % | 1.24 | % | ||||||||||||
| Return on Average Tangible Equity: | ||||||||||||||||||||||||||
Net income available to common shareholders, as reported | $20,128 | $18,697 | $17,408 | $20,415 | $18,524 | $76,648 | $69,678 | |||||||||||||||||||
| Total average equity, as reported | $556,765 | $554,847 | $540,524 | $532,271 | $527,969 | $546,193 | $515,702 | |||||||||||||||||||
| Less average balances of: | ||||||||||||||||||||||||||
Goodwill | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | |||||||||||||||||||
Identifiable intangible assets, net | 5,526 | 5,739 | 5,963 | 6,189 | 6,414 | 5,852 | 6,755 | |||||||||||||||||||
| Total average tangible equity | $487,330 | $485,199 | $470,652 | $462,173 | $457,646 | $476,432 | $445,038 | |||||||||||||||||||
| Return on average equity - GAAP | 14.34 | % | 13.37 | % | 12.92 | % | 15.55 | % | 13.96 | % | 14.03 | % | 13.51 | % | ||||||||||||
Return on average tangible equity - Non-GAAP | 16.39 | % | 15.29 | % | 14.84 | % | 17.91 | % | 16.10 | % | 16.09 | % | 15.66 | % | ||||||||||||
-17-