27.01.2020 22:05:00
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Washington Trust Reports Fourth Quarter and Full-Year 2019 Earnings
WESTERLY, R.I., Jan. 27, 2020 /PRNewswire/ -- Washington Trust Bancorp, Inc. (Nasdaq: WASH), parent company of The Washington Trust Company, today announced fourth quarter 2019 net income of $15.5 million, or $0.89 per diluted share, compared to net income of $18.8 million, or $1.08 per diluted share, reported for the third quarter of 2019. Net income for the year ended December 31, 2019 totaled $69.1 million, or $3.96 per diluted share, compared to $68.4 million, or $3.93 per diluted share, reported for the prior year.
"Washington Trust reported record full-year 2019 earnings," stated Edward O. Handy III, Washington Trust Chairman and Chief Executive Officer. "Our results reflect the strength and stability of our core business model, which enabled us to generate growth and revenues from key business lines. As we enter our 220th year of service, Washington Trust remains committed to providing enhanced value to those who have contributed to our success over time: our employees, our customers, our communities and our shareholders."
Selected highlights for the fourth quarter and full-year 2019 include:
- Returns on average equity and average assets for the fourth quarter 2019 were 12.24% and 1.18%, respectively. Full-year returns on average equity and average assets were 14.34% and 1.34%, respectively.
- Total loans amounted to $3.9 billion at December 31, 2019, up by $115 million, or 3%, from the end of the preceding quarter. Total loans were up by $213 million, or 6%, from December 31, 2018.
- In-market deposits (total deposits less out-of-market wholesale brokered time deposits) amounted to $3.2 billion at December 31, 2019, up by $59 million, or 2%, from the end of the preceding quarter. Total in-market deposits were up by $167 million, or 5%, from December 31, 2018.
- In December, Washington Trust declared a quarterly dividend of 51 cents per share. Full-year 2019 dividends declared amounted to $2.00 per share, an increase of 24 cents per share, or 14%, over last year.
Net Interest Income
Net interest income was $32.0 million for the fourth quarter of 2019, down by $984 thousand, or 3%, from the third quarter of 2019. The net interest margin was 2.61% for the fourth quarter, down by 11 basis points from 2.72% for the preceding quarter. The declines in net interest income and the net interest margin reflect the impact of the Federal Reserve rate cuts in the second half of 2019.
Significant linked quarter changes included:
- Average interest-earning assets increased by $42 million, primarily due to a $72 million increase in the average balance of loans, partially offset by a $46 million decline in the average balance of the securities portfolio. The yield on interest-earning assets for the fourth quarter was 3.86%, down by 21 basis points from the preceding quarter, reflecting the impact of lower market interest rates.
- Average interest-bearing liabilities increased by $33 million, with an increase of $90 million in average in-market deposits, partially offset by a decrease of $57 million in average wholesale funding balances (wholesale brokered time deposits and Federal Home Loan Bank advances). The cost of interest-bearing liabilities for the fourth quarter was 1.53%, down by 13 basis points from the preceding quarter, reflecting lower market interest rates.
Noninterest Income
Noninterest income totaled $16.6 million for the fourth quarter of 2019, down by $1.7 million, or 9%, from the third quarter of 2019. Significant linked quarter changes included:
- Wealth management revenues amounted to $8.9 million for the fourth quarter of 2019, down by $259 thousand, or 3%, on a linked quarter basis, due to a decline in asset-based revenues.
Wealth management assets under administration benefited from financial market appreciation in the fourth quarter of 2019 and totaled $6.2 billion at December 31, 2019, up by $109 million, or 2%, from September 30, 2019. The average balance of assets under administration for the fourth quarter decreased by approximately $209 million, or 3%, from the average balance for the preceding quarter.
Assets under administration have been negatively impacted by approximately $650 million in lost client accounts associated with the departure of two senior counselors at the end of the second quarter of 2019. The impact of these lost accounts was a reduction of revenues of approximately $290 thousand during the third quarter and $775 thousand in the fourth quarter.
- Mortgage banking revenues totaled $3.7 million for the fourth quarter of 2019, down by $1.2 million, or 24%, from the third quarter of 2019. This reflected a linked quarter decline in the mortgage pipeline and corresponding fair value of mortgage loan commitments and loans held for sale as of December 31, 2019. Mortgage loans sold to the secondary market totaled $176 million in the fourth quarter, compared to $185 million in the preceding quarter.
- Loan related derivative income was $1.1 million for the fourth quarter of 2019, down by $291 thousand, or 21%, reflecting lower volume of commercial borrower interest rate swap transactions.
Noninterest Expenses
Noninterest expenses totaled $28.8 million for the fourth quarter of 2019, up by $1.9 million, or 7%, from the third quarter of 2019. The linked quarter comparison of noninterest expenses was impacted by the following:
- In the fourth quarter of 2019, a write-down valuation adjustment of $1.0 million on other real estate owned ("OREO") was recognized and included in other noninterest expenses. There were no such adjustments in the third quarter of 2019.
- FDIC assessment credits of $235 thousand were recognized in the fourth quarter of 2019, compared to credits of $895 thousand in the third quarter of 2019. No additional FDIC assessment credits remain available, as the credits were fully utilized in the fourth quarter of 2019.
Excluding the impact of the aforementioned items, noninterest expenses for the fourth quarter of 2019 increased by $192 thousand, or 1%, on a linked quarter basis, reflecting modest increases across various noninterest expense categories.
Income tax expense totaled $4.3 million for the fourth quarter of 2019, down by $915 thousand from the preceding quarter. The effective tax rate for the fourth quarter of 2019 was 21.8%, unchanged from the preceding quarter.
Investment Securities
The securities portfolio totaled $899 million at December 31, 2019, up by $12 million, or 1%, from September 30, 2019, reflecting purchases of U.S. government agency and U.S. government-sponsored debt securities, including mortgage-backed securities, that were largely offset by routine pay-downs on mortgage-backed securities and calls of debt securities. Fourth quarter 2019 purchases were concentrated in December and totaled $123 million, with a weighted average yield of 2.79%.
Securities represented 17% of total assets at both December 31, 2019 and September 30, 2019.
Loans
Total loans amounted to $3.9 billion at December 31, 2019, up by $115 million, or 3%, from the end of the preceding quarter. Linked quarter changes included:
- Residential real estate loans increased by $71 million, or 5%, from September 30, 2019 and included purchases of $53 million of residential mortgage loans with a weighted average rate of 3.36%. The purchased loans were individually evaluated to our underwriting standards and are predominantly secured by properties in Massachusetts.
- Commercial loans grew by $49 million, or 2%, with net increases of $30 million in the commercial real estate portfolio and $19 million in the commercial and industrial portfolio. In the fourth quarter, commercial loan originations and construction advances totaled approximately $111 million and were partially offset by payoffs and paydowns.
- The consumer loan portfolio decreased by $5 million from the balance at September 30, 2019.
From the end of 2018, total loans increased by $213 million, or 6%, with growth of $120 million, or 6%, in commercial loans, $89 million, or 7%, in residential real estate loans and $4 million, or 1%, in consumer loans.
Deposits and Borrowings
Total deposits amounted to $3.5 billion at December 31, 2019, down by $87 million, or 2%, from the end of the preceding quarter and $25 million, or 1%, from the end of 2018. Included in total deposits are out-of-market wholesale brokered time deposits, which decreased by $146 million from September 30, 2019 and by $192 million from the end of 2018.
Excluding wholesale brokered time deposits, in-market deposits at December 31, 2019 were up by $59 million, or 2%, from the end of the preceding quarter and by $167 million, or 5%, from the end of 2018, reflecting growth in money market and NOW account balances.
Federal Home Loan Bank advances amounted to $1.1 billion at December 31, 2019, up by $185 million from September 30, 2019 and $191 million from the end of 2018.
Asset Quality
Nonperforming assets amounted to $18.5 million at December 31, 2019, down by $527 thousand from the end of the preceding quarter. This decline included a $3.0 million decrease in OREO and a $2.5 million increase in nonaccrual loans. The decrease in OREO reflected the sale of a foreclosed commercial property, with a carrying value of $2.0 million at September 30, 2019, at no gain or loss and a $1.0 valuation write-down adjustment on the remaining foreclosed commercial property in OREO at the end of 2019.
Total nonaccrual loans amounted to $17.4 million, or 0.45% of total loans, at December 31, 2019, compared to $14.9 million, or 0.39% of total loans, at September 30, 2019, reflecting a net increase in nonaccrual residential real estate loans. Total past due loans amounted to $15.7 million, or 0.40% of total loans, at December 31, 2019, compared to $14.4 million, or 0.38% of total loans, at September 30, 2019.
Based on management's assessment of loss exposure, as well as loan loss allocations commensurate with growth and changes in the loan portfolio and credit quality, management concluded that no loan loss provision was necessary in the fourth quarter of 2019. A loan loss provision of $400 thousand was recognized in the preceding quarter. In the fourth quarter of 2019, net recoveries of $17 thousand were recognized, compared to net charge-offs of $801 thousand in the preceding quarter.
The allowance for loan losses amounted to $27.0 million, or 0.69% of total loans, at December 31, 2019, compared to $27.0 million, or 0.71% of total loans, at September 30, 2019.
Capital and Dividends
Total shareholders' equity was $503.5 million at December 31, 2019, up by $5.7 million from September 30, 2019. This increase included net income of $15.5 million, which was partially offset by $8.9 million in dividend declarations and a charge of $2.8 million to the accumulated other comprehensive income component of shareholders' equity associated with the annual remeasurement of pension plan liabilities. This charge was largely due to a decline in the discount rate used to measure the present value of pension plan liabilities as a result of a reduction in market interest rates in 2019.
Capital levels at December 31, 2019 exceeded the regulatory minimum levels to be considered well capitalized, with a total risk-based capital ratio of 12.94% at December 31, 2019, unchanged from September 30, 2019. Book value per share amounted to $29.00 at December 31, 2019, compared to $28.71 at September 30, 2019.
The Board of Directors declared a quarterly dividend of 51 cents per share for the quarter ended December 31, 2019. The dividend was paid on January 10, 2020 to shareholders of record on January 2, 2020.
Conference Call
Washington Trust will host a conference call to discuss its fourth quarter results, business highlights and outlook on Tuesday, January 28, 2020 at 8:30 a.m. (Eastern Time). Individuals may dial in to the call at 1-888-317-6016. An audio replay of the call will be available, shortly after the conclusion of the call, by dialing 1-877-344-7529 and entering the Replay PIN Number 10138161; the audio replay will be available through February 11, 2020. Also, a webcast of the call will be posted in the Investor Relations section of Washington Trust's web site, http://ir.washtrust.com, and will be available through March 31, 2020.
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: weakness in national, regional or international economic conditions or conditions affecting the banking or financial services industries or financial capital markets; volatility in national and international financial markets; reductions in net interest income resulting from interest rate 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; changes in the value of securities and other assets; reductions in loan demand; changes in loan collectibility, default and charge-off rates; 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 breaches, fraud and natural disasters; 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, 2018, 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.
Washington Trust Bancorp, Inc. and Subsidiaries | ||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||
(Unaudited; Dollars in thousands) | ||||||||||
Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | ||||||
Assets: | ||||||||||
Cash and due from banks | $132,193 | $141,768 | $115,904 | $88,242 | $89,923 | |||||
Short-term investments | 6,262 | 4,336 | 3,910 | 3,317 | 3,552 | |||||
Mortgage loans held for sale, at fair value | 27,833 | 44,657 | 39,996 | 14,608 | 20,996 | |||||
Securities: | ||||||||||
Available for sale debt securities, at fair value | 899,490 | 887,020 | 969,168 | 994,881 | 927,810 | |||||
Held to maturity debt securities, at amortized cost | — | — | — | — | 10,415 | |||||
Total securities | 899,490 | 887,020 | 969,168 | 994,881 | 938,225 | |||||
Federal Home Loan Bank stock, at cost | 50,853 | 45,030 | 49,759 | 48,025 | 46,068 | |||||
Loans: | ||||||||||
Total loans | 3,892,999 | 3,778,106 | 3,730,339 | 3,738,469 | 3,680,360 | |||||
Less allowance for loan losses | 27,014 | 26,997 | 27,398 | 27,644 | 27,072 | |||||
Net loans | 3,865,985 | 3,751,109 | 3,702,941 | 3,710,825 | 3,653,288 | |||||
Premises and equipment, net | 28,700 | 29,293 | 29,302 | 29,822 | 29,005 | |||||
Operating lease right-of-use assets | 26,792 | 27,500 | 28,174 | 28,249 | — | |||||
Investment in bank-owned life insurance | 82,490 | 81,920 | 81,351 | 80,786 | 80,463 | |||||
Goodwill | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | |||||
Identifiable intangible assets, net | 7,218 | 7,448 | 7,684 | 7,923 | 8,162 | |||||
Other assets | 100,934 | 114,888 | 97,574 | 84,142 | 77,175 | |||||
Total assets | $5,292,659 | $5,198,878 | $5,189,672 | $5,154,729 | $5,010,766 | |||||
Liabilities: | ||||||||||
Deposits: | ||||||||||
Noninterest-bearing deposits | $609,924 | $619,839 | $587,326 | $577,319 | $603,216 | |||||
Interest-bearing deposits | 2,888,958 | 2,966,314 | 2,917,296 | 2,926,941 | 2,920,832 | |||||
Total deposits | 3,498,882 | 3,586,153 | 3,504,622 | 3,504,260 | 3,524,048 | |||||
Federal Home Loan Bank advances | 1,141,464 | 956,786 | 1,060,960 | 1,056,129 | 950,722 | |||||
Junior subordinated debentures | 22,681 | 22,681 | 22,681 | 22,681 | 22,681 | |||||
Operating lease liabilities | 28,861 | 29,541 | 30,210 | 30,187 | — | |||||
Other liabilities | 97,279 | 105,892 | 86,994 | 71,629 | 65,131 | |||||
Total liabilities | 4,789,167 | 4,701,053 | 4,705,467 | 4,684,886 | 4,562,582 | |||||
Shareholders' Equity: | ||||||||||
Common stock | 1,085 | 1,084 | 1,083 | 1,082 | 1,081 | |||||
Paid-in capital | 123,281 | 121,900 | 121,115 | 120,743 | 119,888 | |||||
Retained earnings | 390,363 | 383,765 | 373,873 | 365,521 | 355,524 | |||||
Accumulated other comprehensive loss | (11,237) | (8,924) | (11,866) | (17,503) | (28,309) | |||||
Total shareholders' equity | 503,492 | 497,825 | 484,205 | 469,843 | 448,184 | |||||
Total liabilities and shareholders' equity | $5,292,659 | $5,198,878 | $5,189,672 | $5,154,729 | $5,010,766 |
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 | ||||||||||||||
Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Dec 31, | Dec 31, | |||||||||
Interest income: | |||||||||||||||
Interest and fees on loans | $40,079 | $41,558 | $42,138 | $41,744 | $40,299 | $165,519 | $149,932 | ||||||||
Interest on mortgage loans held for sale | 359 | 410 | 288 | 180 | 289 | 1,237 | 1,212 | ||||||||
Taxable interest on debt securities | 5,817 | 6,318 | 7,006 | 7,226 | 5,957 | 26,367 | 21,816 | ||||||||
Nontaxable interest on debt securities | — | 1 | 8 | 9 | 9 | 18 | 61 | ||||||||
Dividends on Federal Home Loan Bank stock | 693 | 747 | 720 | 695 | 669 | 2,855 | 2,369 | ||||||||
Other interest income | 435 | 493 | 399 | 340 | 294 | 1,667 | 1,017 | ||||||||
Total interest and dividend income | 47,383 | 49,527 | 50,559 | 50,194 | 47,517 | 197,663 | 176,407 | ||||||||
Interest expense: | |||||||||||||||
Deposits | 9,144 | 9,792 | 9,469 | 8,696 | 7,953 | 37,101 | 24,175 | ||||||||
Federal Home Loan Bank advances | 6,015 | 6,512 | 6,980 | 6,661 | 5,446 | 26,168 | 19,073 | ||||||||
Junior subordinated debentures | 230 | 245 | 252 | 253 | 240 | 980 | 869 | ||||||||
Total interest expense | 15,389 | 16,549 | 16,701 | 15,610 | 13,639 | 64,249 | 44,117 | ||||||||
Net interest income | 31,994 | 32,978 | 33,858 | 34,584 | 33,878 | 133,414 | 132,290 | ||||||||
Provision for loan losses | — | 400 | 525 | 650 | 800 | 1,575 | 1,550 | ||||||||
Net interest income after provision for loan losses | 31,994 | 32,578 | 33,333 | 33,934 | 33,078 | 131,839 | 130,740 | ||||||||
Noninterest income: | |||||||||||||||
Wealth management revenues | 8,894 | 9,153 | 9,549 | 9,252 | 9,012 | 36,848 | 38,341 | ||||||||
Mortgage banking revenues | 3,669 | 4,840 | 3,640 | 2,646 | 1,978 | 14,795 | 10,381 | ||||||||
Card interchange fees | 1,100 | 1,099 | 1,018 | 997 | 977 | 4,214 | 3,768 | ||||||||
Service charges on deposit accounts | 941 | 939 | 929 | 875 | 977 | 3,684 | 3,628 | ||||||||
Loan related derivative income | 1,116 | 1,407 | 746 | 724 | 1,374 | 3,993 | 2,461 | ||||||||
Income from bank-owned life insurance | 570 | 569 | 566 | 649 | 572 | 2,354 | 2,196 | ||||||||
Net realized losses on securities | 27 | — | (80) | — | — | (53) | — | ||||||||
Other income | 301 | 335 | 385 | 224 | 273 | 1,245 | 1,339 | ||||||||
Total noninterest income | 16,618 | 18,342 | 16,753 | 15,367 | 15,163 | 67,080 | 62,114 | ||||||||
Noninterest expense: | |||||||||||||||
Salaries and employee benefits | 18,374 | 18,332 | 18,436 | 17,619 | 16,918 | 72,761 | 69,277 | ||||||||
Outsourced services | 2,752 | 2,722 | 2,518 | 2,606 | 2,510 | 10,598 | 8,684 | ||||||||
Net occupancy | 1,986 | 1,933 | 1,904 | 1,998 | 1,946 | 7,821 | 7,891 | ||||||||
Equipment | 996 | 1,046 | 1,028 | 1,011 | 983 | 4,081 | 4,312 | ||||||||
Legal, audit and professional fees | 692 | 645 | 664 | 534 | 587 | 2,535 | 2,427 | ||||||||
FDIC deposit insurance costs | 109 | (460) | 540 | 429 | 376 | 618 | 1,612 | ||||||||
Advertising and promotion | 402 | 368 | 525 | 239 | 460 | 1,534 | 1,406 | ||||||||
Amortization of intangibles | 229 | 236 | 239 | 239 | 239 | 943 | 979 | ||||||||
Change in fair value of contingent consideration | — | — | — | — | (187) | — | (187) | ||||||||
Other expenses | 3,215 | 2,048 | 2,297 | 2,289 | 2,850 | 9,849 | 9,761 | ||||||||
Total noninterest expense | 28,755 | 26,870 | 28,151 | 26,964 | 26,682 | 110,740 | 106,162 | ||||||||
Income before income taxes | 19,857 | 24,050 | 21,935 | 22,337 | 21,559 | 88,179 | 86,692 | ||||||||
Income tax expense | 4,321 | 5,236 | 4,662 | 4,842 | 4,523 | 19,061 | 18,260 | ||||||||
Net income | $15,536 | $18,814 | $17,273 | $17,495 | $17,036 | $69,118 | $68,432 | ||||||||
Net income available to common shareholders | $15,502 | $18,778 | $17,238 | $17,461 | $17,004 | $68,979 | $68,288 | ||||||||
Weighted average common shares outstanding: | |||||||||||||||
Basic | 17,351 | 17,338 | 17,330 | 17,304 | 17,297 | 17,331 | 17,272 | ||||||||
Diluted | 17,436 | 17,414 | 17,405 | 17,401 | 17,385 | 17,414 | 17,391 | ||||||||
Earnings per common share: | |||||||||||||||
Basic | $0.89 | $1.08 | $0.99 | $1.01 | $0.98 | $3.98 | $3.95 | ||||||||
Diluted | $0.89 | $1.08 | $0.99 | $1.00 | $0.98 | $3.96 | $3.93 | ||||||||
Cash dividends declared per share | $0.51 | $0.51 | $0.51 | $0.47 | $0.47 | $2.00 | $1.76 |
Washington Trust Bancorp, Inc. and Subsidiaries | ||||||||||
SELECTED FINANCIAL HIGHLIGHTS | ||||||||||
(Unaudited; Dollars and shares in thousands, except per share amounts) | ||||||||||
Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | ||||||
Share and Equity Related Data: | ||||||||||
Book value per share | $29.00 | $28.71 | $27.93 | $27.15 | $25.90 | |||||
Tangible book value per share - Non-GAAP (1) | $24.90 | $24.60 | $23.80 | $23.00 | $21.74 | |||||
Market value per share | $53.79 | $48.31 | $52.18 | $48.15 | $47.53 | |||||
Shares issued and outstanding at end of period | 17,363 | 17,338 | 17,336 | 17,305 | 17,302 | |||||
Capital Ratios (2): | ||||||||||
Tier 1 risk-based capital | 12.23 | % | 12.21 | % | 12.06 | % | 11.84 | % | 11.81 | % |
Total risk-based capital | 12.94 | % | 12.94 | % | 12.80 | % | 12.59 | % | 12.56 | % |
Tier 1 leverage ratio | 9.04 | % | 8.97 | % | 8.76 | % | 8.69 | % | 8.89 | % |
Common equity tier 1 | 11.65 | % | 11.62 | % | 11.46 | % | 11.25 | % | 11.20 | % |
Balance Sheet Ratios: | ||||||||||
Equity to assets | 9.51 | % | 9.58 | % | 9.33 | % | 9.11 | % | 8.94 | % |
Tangible equity to tangible assets - Non-GAAP (1) | 8.28 | % | 8.32 | % | 8.06 | % | 7.83 | % | 7.62 | % |
Loans to deposits (3) | 111.3 | % | 105.8 | % | 106.8 | % | 106.3 | % | 104.3 | % |
For the Twelve Months | |||||||||||||||
For the Three Months Ended | |||||||||||||||
Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Dec 31, | Dec 31, | |||||||||
Performance Ratios (4): | |||||||||||||||
Net interest margin (5) | 2.61 | % | 2.72 | % | 2.81 | % | 2.93 | % | 2.95 | % | 2.77 | % | 3.01 | % | |
Return on average assets (net income divided by | 1.18 | % | 1.44 | % | 1.34 | % | 1.39 | % | 1.40 | % | 1.34 | % | 1.46 | % | |
Return on average tangible assets - Non-GAAP (1) | 1.20 | % | 1.46 | % | 1.36 | % | 1.41 | % | 1.42 | % | 1.36 | % | 1.48 | % | |
Return on average equity (net income available for | 12.24 | % | 15.20 | % | 14.58 | % | 15.52 | % | 15.61 | % | 14.34 | % | 16.20 | % | |
Return on average tangible equity - Non-GAAP (1) | 14.26 | % | 17.79 | % | 17.17 | % | 18.43 | % | 18.75 | % | 16.85 | % | 19.57 | % | |
Efficiency ratio (6) | 59.2 | % | 52.4 | % | 55.6 | % | 54.0 | % | 54.4 | % | 55.2 | % | 54.6 | % |
(1) | See the section labeled "SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures" at the end of this document. |
(2) | Estimated for December 31, 2019 and actuals for prior periods. |
(3) | Period-end balances of net loans and mortgage loans held for sale as a percentage of total deposits. |
(4) | Annualized based on the actual number of days in the period. |
(5) | Fully taxable equivalent (FTE) net interest income as a percentage of average-earnings assets. |
(6) | Total noninterest expense as percentage of total revenues (net interest income and noninterest income). |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||
SELECTED FINANCIAL HIGHLIGHTS | |||||||||||||||
(Unaudited; Dollars in thousands) | |||||||||||||||
For the Three Months Ended | For the Twelve Months | ||||||||||||||
Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Dec 31, | Dec 31, | |||||||||
Wealth Management Results | |||||||||||||||
Wealth Management Revenues: | |||||||||||||||
Asset-based revenues | $8,731 | $9,013 | $9,141 | $8,921 | $8,930 | $35,806 | $37,343 | ||||||||
Transaction-based revenues | 163 | 140 | 408 | 331 | 82 | 1,042 | 998 | ||||||||
Total wealth management revenues | $8,894 | $9,153 | $9,549 | $9,252 | $9,012 | $36,848 | $38,341 | ||||||||
Assets Under Administration (AUA): | |||||||||||||||
Balance at beginning of period | $6,126,327 | $6,478,890 | $6,350,128 | $5,910,814 | $6,462,340 | $5,910,814 | $6,714,637 | ||||||||
Net investment appreciation (depreciation) & income | 310,766 | 66,514 | 222,489 | 520,057 | (534,847) | 1,119,826 | (201,176) | ||||||||
Net client asset flows | (243,175) | (419,077) | (93,727) | (80,743) | (16,679) | (836,722) | (602,647) | ||||||||
Other (1) | 41,883 | — | — | — | — | 41,883 | — | ||||||||
Balance at end of period | $6,235,801 | $6,126,327 | $6,478,890 | $6,350,128 | $5,910,814 | $6,235,801 | $5,910,814 | ||||||||
Percentage of AUA that are managed assets | 90% | 90% | 91% | 91% | 90% | 90% | 90% | ||||||||
Mortgage Banking Results | |||||||||||||||
Mortgage Banking Revenues: | |||||||||||||||
Gains & commissions on loan sales, net (2) | $3,583 | $4,752 | $3,523 | $2,474 | $1,798 | $14,332 | $9,748 | ||||||||
Loan servicing fee income, net (3) | 86 | 88 | 117 | 172 | 180 | 463 | 633 | ||||||||
Total mortgage banking revenues | $3,669 | $4,840 | $3,640 | $2,646 | $1,978 | $14,795 | $10,381 | ||||||||
Residential Mortgage Loan Originations: | |||||||||||||||
Originations for retention in portfolio | $120,882 | $105,075 | $69,736 | $51,697 | $58,515 | $347,390 | $335,585 | ||||||||
Originations for sale to secondary market (4) | 160,175 | 189,979 | 162,123 | 85,826 | 96,792 | 598,103 | 427,037 | ||||||||
Total mortgage loan originations | $281,057 | $295,054 | $231,859 | $137,523 | $155,307 | $945,493 | $762,622 | ||||||||
Residential Mortgage Loans Sold: | |||||||||||||||
Sold with servicing rights retained | $42,612 | $25,766 | $18,292 | $9,490 | $16,577 | $96,160 | $98,941 | ||||||||
Sold with servicing rights released (4) | 134,091 | 159,210 | 119,122 | 82,589 | 81,985 | 495,012 | 333,998 | ||||||||
Total mortgage loans sold | $176,703 | $184,976 | $137,414 | $92,079 | $98,562 | $591,172 | $432,939 |
(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, fair value adjustments on mortgage loans held for sale, and fair value adjustments and gains on forward loan commitments. |
(3) | Represents loan servicing fee income, net of servicing right amortization and valuation adjustments. |
(4) | Includes brokered loans (loans originated for others). |
Washington Trust Bancorp, Inc. and Subsidiaries | ||||||||||
END OF PERIOD LOAN AND DEPOSIT COMPOSITION | ||||||||||
(Unaudited; Dollars in thousands) | ||||||||||
Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | ||||||
Loans: | ||||||||||
Commercial real estate (1) | $1,547,572 | $1,517,320 | $1,482,836 | $1,463,682 | $1,392,408 | |||||
Commercial & industrial | 585,289 | 566,426 | 583,873 | 610,608 | 620,704 | |||||
Total commercial | 2,132,861 | 2,083,746 | 2,066,709 | 2,074,290 | 2,013,112 | |||||
Residential real estate (2) | 1,449,090 | 1,378,518 | 1,352,113 | 1,359,072 | 1,360,387 | |||||
Home equity | 290,874 | 294,250 | 288,078 | 279,938 | 280,626 | |||||
Other | 20,174 | 21,592 | 23,439 | 25,169 | 26,235 | |||||
Total consumer | 311,048 | 315,842 | 311,517 | 305,107 | 306,861 | |||||
Total loans | $3,892,999 | $3,778,106 | $3,730,339 | $3,738,469 | $3,680,360 |
(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, 2019 | December 31, 2018 | ||||||||
Balance | % of Total | Balance | % of Total | ||||||
Commercial Real Estate Loans by Property Location: | |||||||||
Rhode Island | $394,929 | 25 | % | $377,249 | 27 | % | |||
Connecticut | 616,484 | 40 | 570,116 | 41 | |||||
Massachusetts | 458,029 | 30 | 356,615 | 26 | |||||
Subtotal | 1,469,442 | 95 | 1,303,980 | 94 | |||||
All other states | 78,130 | 5 | 88,428 | 6 | |||||
Total commercial real estate loans | $1,547,572 | 100 | % | $1,392,408 | 100 | % | |||
Residential Real Estate Loans by Property Location: | |||||||||
Rhode Island | $356,392 | 25 | % | $352,141 | 26 | % | |||
Connecticut | 140,574 | 10 | 141,775 | 10 | |||||
Massachusetts | 932,726 | 64 | 849,435 | 63 | |||||
Subtotal | 1,429,692 | 99 | 1,343,351 | 99 | |||||
All other states | 19,398 | 1 | 17,036 | 1 | |||||
Total residential real estate loans | $1,449,090 | 100 | % | $1,360,387 | 100 | % |
Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | ||||||
Deposits: | ||||||||||
Noninterest-bearing demand deposits | $609,924 | $619,839 | $587,326 | $577,319 | $603,216 | |||||
Interest-bearing demand deposits | 159,938 | 152,200 | 128,355 | 162,598 | 178,733 | |||||
NOW accounts | 520,295 | 478,462 | 484,615 | 471,682 | 466,568 | |||||
Money market accounts | 765,899 | 749,122 | 654,719 | 644,949 | 646,878 | |||||
Savings accounts | 373,503 | 362,868 | 365,069 | 371,248 | 373,545 | |||||
Time deposits (in-market) | 784,481 | 792,941 | 801,501 | 792,470 | 778,105 | |||||
In-market deposits | 3,214,040 | 3,155,432 | 3,021,585 | 3,020,266 | 3,047,045 | |||||
Wholesale brokered time deposits | 284,842 | 430,721 | 483,037 | 483,994 | 477,003 | |||||
Total deposits | $3,498,882 | $3,586,153 | $3,504,622 | $3,504,260 | $3,524,048 |
Washington Trust Bancorp, Inc. and Subsidiaries | ||||||||||
CREDIT & ASSET QUALITY DATA | ||||||||||
(Unaudited; Dollars in thousands) | ||||||||||
Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | ||||||
Asset Quality Ratios: | ||||||||||
Nonperforming assets to total assets | 0.35 | % | 0.37 | % | 0.29 | % | 0.28 | % | 0.28 | % |
Nonaccrual loans to total loans | 0.45 | % | 0.39 | % | 0.34 | % | 0.33 | % | 0.32 | % |
Total past due loans to total loans | 0.40 | % | 0.38 | % | 0.48 | % | 0.39 | % | 0.37 | % |
Allowance for loan losses to nonaccrual loans | 155.18 | % | 181.16 | % | 212.93 | % | 223.57 | % | 231.25 | % |
Allowance for loan losses to total loans | 0.69 | % | 0.71 | % | 0.73 | % | 0.74 | % | 0.74 | % |
Nonperforming Assets: | ||||||||||
Commercial real estate | $603 | $684 | $926 | $926 | $925 | |||||
Commercial & industrial | 657 | — | — | — | — | |||||
Total commercial | 1,260 | 684 | 926 | 926 | 925 | |||||
Residential real estate | 14,297 | 12,531 | 10,610 | 10,032 | 9,346 | |||||
Home equity | 1,763 | 1,599 | 1,243 | 1,407 | 1,436 | |||||
Other consumer | 88 | 88 | 88 | — | — | |||||
Total consumer | 1,851 | 1,687 | 1,331 | 1,407 | 1,436 | |||||
Total nonaccrual loans | 17,408 | 14,902 | 12,867 | 12,365 | 11,707 | |||||
Other real estate owned | 1,109 | 4,142 | 2,142 | 2,142 | 2,142 | |||||
Total nonperforming assets | $18,517 | $19,044 | $15,009 | $14,507 | $13,849 | |||||
Past Due Loans (30 days or more past due): | ||||||||||
Commercial real estate | $1,433 | $684 | $3,670 | $926 | $1,080 | |||||
Commercial & industrial | 1 | 1 | 1 | 1 | — | |||||
Total commercial | 1,434 | 685 | 3,671 | 927 | 1,080 | |||||
Residential real estate | 11,429 | 11,599 | 11,237 | 10,849 | 10,520 | |||||
Home equity | 2,696 | 1,973 | 2,904 | 2,911 | 1,989 | |||||
Other consumer | 130 | 99 | 102 | 13 | 33 | |||||
Total consumer | 2,826 | 2,072 | 3,006 | 2,924 | 2,022 | |||||
Total past due loans | $15,689 | $14,356 | $17,914 | $14,700 | $13,622 | |||||
Accruing loans 90 days or more past due | $— | $— | $— | $— | $— | |||||
Nonaccrual loans included in past due loans | $11,477 | $9,797 | $8,581 | $8,563 | $8,613 |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||
CREDIT & ASSET QUALITY DATA | |||||||||||||||
(Unaudited; Dollars in thousands) | |||||||||||||||
For the Three Months Ended | For the Twelve Months | ||||||||||||||
Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Dec 31, | Dec 31, | |||||||||
Nonaccrual Loan Activity: | |||||||||||||||
Balance at beginning of period | $14,902 | $12,867 | $12,365 | $11,707 | $10,809 | $11,707 | $15,211 | ||||||||
Additions to nonaccrual status | 2,766 | 5,672 | 1,620 | 1,924 | 2,918 | 11,982 | 8,764 | ||||||||
Loans returned to accruing status | — | (597) | (118) | (855) | (1,500) | (1,570) | (2,680) | ||||||||
Loans charged-off | (132) | (966) | (819) | (103) | (298) | (2,020) | (1,187) | ||||||||
Loans transferred to other real estate owned | — | (2,000) | — | — | — | (2,000) | (3,074) | ||||||||
Payments, payoffs and other changes | (128) | (74) | (181) | (308) | (222) | (691) | (5,327) | ||||||||
Balance at end of period | $17,408 | $14,902 | $12,867 | $12,365 | $11,707 | $17,408 | $11,707 | ||||||||
Allowance for Loan Losses: | |||||||||||||||
Balance at beginning of period | $26,997 | $27,398 | $27,644 | $27,072 | $26,509 | $27,072 | $26,488 | ||||||||
Provision charged to earnings | — | 400 | 525 | 650 | 800 | 1,575 | 1,550 | ||||||||
Charge-offs | (132) | (966) | (819) | (103) | (298) | (2,020) | (1,187) | ||||||||
Recoveries | 149 | 165 | 48 | 25 | 61 | 387 | 221 | ||||||||
Balance at end of period | $27,014 | $26,997 | $27,398 | $27,644 | $27,072 | $27,014 | $27,072 | ||||||||
Net Loan Charge-Offs (Recoveries): | |||||||||||||||
Commercial real estate | ($44) | $947 | $— | $— | $— | $903 | $602 | ||||||||
Commercial & industrial | (15) | (122) | (16) | 6 | (13) | (147) | (109) | ||||||||
Total commercial | (59) | 825 | (16) | 6 | (13) | 756 | 493 | ||||||||
Residential real estate | — | — | 486 | — | 156 | 486 | 229 | ||||||||
Home equity | 17 | (36) | 289 | 48 | 65 | 318 | 164 | ||||||||
Other consumer | 25 | 12 | 12 | 24 | 29 | 73 | 80 | ||||||||
Total consumer | 42 | (24) | 301 | 72 | 94 | 391 | 244 | ||||||||
Total | ($17) | $801 | $771 | $78 | $237 | $1,633 | $966 | ||||||||
Net charge-offs to average loans (annualized) | — | % | 0.08 | % | 0.08 | % | 0.01 | % | 0.03 | % | 0.04 | % | 0.03 | % |
The following table presents average balance and interest rate information. Tax-exempt income is converted to a fully taxable equivalent 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 fair value adjustments 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, 2019 | September 30, 2019 | Quarter Change | |||||||||||||||||
Average | Interest | Yield/ Rate | Average | Interest | Yield/ Rate | Average | Interest | Yield/ | ||||||||||||
Assets: | ||||||||||||||||||||
Cash, federal funds sold and short-term investments | $115,458 | $435 | 1.49 | % | $96,231 | $493 | 2.03 | % | $19,227 | ($58) | (0.54) | % | ||||||||
Mortgage loans held for sale | 38,494 | 359 | 3.70 | 39,771 | 410 | 4.09 | (1,277) | (51) | (0.39) | |||||||||||
Taxable debt securities | 874,770 | 5,817 | 2.64 | 920,910 | 6,318 | 2.72 | (46,140) | (501) | (0.08) | |||||||||||
Nontaxable debt securities | — | — | — | 75 | 3 | 15.87 | (75) | (3) | (15.87) | |||||||||||
Total securities | 874,770 | 5,817 | 2.64 | 920,985 | 6,321 | 2.72 | (46,215) | (504) | (0.08) | |||||||||||
FHLB stock | 46,501 | 693 | 5.91 | 47,982 | 747 | 6.18 | (1,481) | (54) | (0.27) | |||||||||||
Commercial real estate | 1,538,627 | 16,491 | 4.25 | 1,490,878 | 17,314 | 4.61 | 47,749 | (823) | (0.36) | |||||||||||
Commercial & industrial | 576,590 | 6,572 | 4.52 | 584,601 | 6,946 | 4.71 | (8,011) | (374) | (0.19) | |||||||||||
Total commercial | 2,115,217 | 23,063 | 4.33 | 2,075,479 | 24,260 | 4.64 | 39,738 | (1,197) | (0.31) | |||||||||||
Residential real estate | 1,399,144 | 13,833 | 3.92 | 1,367,017 | 13,728 | 3.98 | 32,127 | 105 | (0.06) | |||||||||||
Home equity | 293,029 | 3,254 | 4.41 | 291,058 | 3,615 | 4.93 | 1,971 | (361) | (0.52) | |||||||||||
Other | 20,589 | 250 | 4.82 | 22,270 | 278 | 4.95 | (1,681) | (28) | (0.13) | |||||||||||
Total consumer | 313,618 | 3,504 | 4.43 | 313,328 | 3,893 | 4.93 | 290 | (389) | (0.50) | |||||||||||
Total loans | 3,827,979 | 40,400 | 4.19 | 3,755,824 | 41,881 | 4.42 | 72,155 | (1,481) | (0.23) | |||||||||||
Total interest-earning assets | 4,903,202 | 47,704 | 3.86 | 4,860,793 | 49,852 | 4.07 | 42,409 | (2,148) | (0.21) | |||||||||||
Noninterest-earning assets | 323,833 | 320,223 | 3,610 | |||||||||||||||||
Total assets | $5,227,035 | $5,181,016 | $46,019 | |||||||||||||||||
Liabilities and Shareholders' Equity: | ||||||||||||||||||||
Interest-bearing demand deposits | $146,408 | $578 | 1.57 | % | $137,980 | $649 | 1.87 | % | $8,428 | ($71) | (0.30) | % | ||||||||
NOW accounts | 489,374 | 82 | 0.07 | 471,302 | 69 | 0.06 | 18,072 | 13 | 0.01 | |||||||||||
Money market accounts | 769,860 | 2,179 | 1.12 | 699,138 | 2,094 | 1.19 | 70,722 | 85 | (0.07) | |||||||||||
Savings accounts | 365,977 | 68 | 0.07 | 362,142 | 72 | 0.08 | 3,835 | (4) | (0.01) | |||||||||||
Time deposits (in-market) | 789,864 | 4,157 | 2.09 | 800,571 | 4,181 | 2.07 | (10,707) | (24) | 0.02 | |||||||||||
Total interest-bearing in-market deposits | 2,561,483 | 7,064 | 1.09 | 2,471,133 | 7,065 | 1.13 | 90,350 | (1) | (0.04) | |||||||||||
Wholesale brokered time deposits | 392,001 | 2,080 | 2.11 | 475,026 | 2,727 | 2.28 | (83,025) | (647) | (0.17) | |||||||||||
Total interest-bearing deposits | 2,953,484 | 9,144 | 1.23 | 2,946,159 | 9,792 | 1.32 | 7,325 | (648) | (0.09) | |||||||||||
FHLB advances | 1,006,246 | 6,015 | 2.37 | 980,091 | 6,512 | 2.64 | 26,155 | (497) | (0.27) | |||||||||||
Junior subordinated debentures | 22,681 | 230 | 4.02 | 22,681 | 245 | 4.29 | — | (15) | (0.27) | |||||||||||
Total interest-bearing liabilities | 3,982,411 | 15,389 | 1.53 | 3,948,931 | 16,549 | 1.66 | 33,480 | (1,160) | (0.13) | |||||||||||
Noninterest-bearing demand deposits | 618,406 | 626,408 | (8,002) | |||||||||||||||||
Other liabilities | 123,604 | 115,480 | 8,124 | |||||||||||||||||
Shareholders' equity | 502,614 | 490,197 | 12,417 | |||||||||||||||||
Total liabilities and shareholders' equity | $5,227,035 | $5,181,016 | $46,019 | |||||||||||||||||
Net interest income (FTE) | $32,315 | $33,303 | ($988) | |||||||||||||||||
Interest rate spread | 2.33 | % | 2.41 | % | (0.08) | % | ||||||||||||||
Net interest margin | 2.61 | % | 2.72 | % | (0.11) | % |
Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:
For the Three Months Ended | Dec 31, | Sep 30, | Quarter | |||
Commercial loans | $321 | $323 | ($2) | |||
Nontaxable debt securities | — | 2 | (2) | |||
Total | $321 | $325 | ($4) |
Washington Trust Bancorp, Inc. and Subsidiaries | ||||||||||||||||||
CONSOLIDATED AVERAGE BALANCE SHEETS (FTE Basis) | ||||||||||||||||||
(Unaudited; Dollars in thousands) | ||||||||||||||||||
For the Twelve Months Ended | December 31, 2019 | December 31, 2018 | Change | |||||||||||||||
Average | Interest | Yield/ Rate | Average | Interest | Yield/ Rate | Average | Interest | Yield/ | ||||||||||
Assets: | ||||||||||||||||||
Cash, federal funds sold and short-term investments | $85,447 | $1,667 | 1.95 | % | $53,264 | $1,017 | 1.91 | % | $32,183 | $650 | 0.04 | % | ||||||
Mortgage loans for sale | 30,928 | 1,237 | 4.00 | 28,360 | 1,212 | 4.27 | 2,568 | 25 | (0.27) | |||||||||
Taxable debt securities | 947,875 | 26,367 | 2.78 | 832,374 | 21,816 | 2.62 | 115,501 | 4,551 | 0.16 | |||||||||
Nontaxable debt securities | 450 | 23 | 5.11 | 1,540 | 78 | 5.06 | (1,090) | (55) | 0.05 | |||||||||
Total securities | 948,325 | 26,390 | 2.78 | 833,914 | 21,894 | 2.63 | 114,411 | 4,496 | 0.15 | |||||||||
FHLB stock | 47,761 | 2,855 | 5.98 | 43,530 | 2,369 | 5.44 | 4,231 | 486 | 0.54 | |||||||||
Commercial real estate | 1,481,116 | 68,193 | 4.60 | 1,247,068 | 55,239 | 4.43 | 234,048 | 12,954 | 0.17 | |||||||||
Commercial & industrial | 596,451 | 28,545 | 4.79 | 627,485 | 29,845 | 4.76 | (31,034) | (1,300) | 0.03 | |||||||||
Total commercial | 2,077,567 | 96,738 | 4.66 | 1,874,553 | 85,084 | 4.54 | 203,014 | 11,654 | 0.12 | |||||||||
Residential real estate | 1,368,824 | 54,932 | 4.01 | 1,296,389 | 51,233 | 3.95 | 72,435 | 3,699 | 0.06 | |||||||||
Home equity | 286,767 | 14,011 | 4.89 | 283,868 | 13,461 | 4.74 | 2,899 | 550 | 0.15 | |||||||||
Other | 23,153 | 1,137 | 4.91 | 28,661 | 1,402 | 4.89 | (5,508) | (265) | 0.02 | |||||||||
Total consumer | 309,920 | 15,148 | 4.89 | 312,529 | 14,863 | 4.76 | (2,609) | 285 | 0.13 | |||||||||
Total loans | 3,756,311 | 166,818 | 4.44 | 3,483,471 | 151,180 | 4.34 | 272,840 | 15,638 | 0.10 | |||||||||
Total interest-earning assets | 4,868,772 | 198,967 | 4.09 | 4,442,539 | 177,672 | 4.00 | 426,233 | 21,295 | 0.09 | |||||||||
Noninterest-earning assets | 300,549 | 239,327 | 61,222 | |||||||||||||||
Total assets | $5,169,321 | $4,681,866 | $487,455 | |||||||||||||||
Liabilities and Shareholders' Equity: | ||||||||||||||||||
Interest-bearing demand deposits | $144,836 | $2,537 | 1.75 | % | $112,792 | $1,231 | 1.09 | % | $32,044 | $1,306 | 0.66 | % | ||||||
NOW accounts | 469,540 | 310 | 0.07 | 455,823 | 422 | 0.09 | 13,717 | (112) | (0.02) | |||||||||
Money market accounts | 693,921 | 7,713 | 1.11 | 665,690 | 4,393 | 0.66 | 28,231 | 3,320 | 0.45 | |||||||||
Savings accounts | 365,927 | 272 | 0.07 | 372,269 | 233 | 0.06 | (6,342) | 39 | 0.01 | |||||||||
Time deposits (in-market) | 794,124 | 16,056 | 2.02 | 684,571 | 10,208 | 1.49 | 109,553 | 5,848 | 0.53 | |||||||||
Total interest-bearing in-market deposits | 2,468,348 | 26,888 | 1.09 | 2,291,145 | 16,487 | 0.72 | 177,203 | 10,401 | 0.37 | |||||||||
Wholesale brokered time deposits | 461,862 | 10,213 | 2.21 | 432,205 | 7,688 | 1.78 | 29,657 | 2,525 | 0.43 | |||||||||
Total interest-bearing deposits | 2,930,210 | 37,101 | 1.27 | 2,723,350 | 24,175 | 0.89 | 206,860 | 12,926 | 0.38 | |||||||||
FHLB advances | 1,015,914 | 26,168 | 2.58 | 854,398 | 19,073 | 2.23 | 161,516 | 7,095 | 0.35 | |||||||||
Junior subordinated debentures | 22,681 | 980 | 4.32 | 22,681 | 869 | 3.83 | — | 111 | 0.49 | |||||||||
Total interest-bearing liabilities | 3,968,805 | 64,249 | 1.62 | 3,600,429 | 44,117 | 1.23 | 368,376 | 20,132 | 0.39 | |||||||||
Noninterest-bearing demand deposits | 615,049 | 596,829 | 18,220 | |||||||||||||||
Other liabilities | 104,463 | 63,102 | 41,361 | |||||||||||||||
Shareholders' equity | 481,004 | 421,506 | 59,498 | |||||||||||||||
Total liabilities and shareholders' equity | $5,169,321 | $4,681,866 | $487,455 | |||||||||||||||
Net interest income (FTE) | $134,718 | $133,555 | $1,163 | |||||||||||||||
Interest rate spread | 2.47 | % | 2.77 | % | (0.30) | % | ||||||||||||
Net interest margin | 2.77 | % | 3.01 | % | (0.24) | % |
Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:
For the Twelve Months Ended | Dec 31, | Dec 31, | Change | |||
Commercial loans | $1,299 | $1,248 | $51 | |||
Nontaxable debt securities | 5 | 17 | (12) | |||
Total | $1,304 | $1,265 | $39 |
Washington Trust Bancorp, Inc. and Subsidiaries | ||||||||||
SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures | ||||||||||
(Unaudited; Dollars in thousands, except per share amounts) | ||||||||||
Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | ||||||
Tangible Book Value per Share: | ||||||||||
Total shareholders' equity, as reported | $503,492 | $497,825 | $484,205 | $469,843 | $448,184 | |||||
Less: | ||||||||||
Goodwill | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | |||||
Identifiable intangible assets, net | 7,218 | 7,448 | 7,684 | 7,923 | 8,162 | |||||
Total tangible shareholders' equity | $432,365 | $426,468 | $412,612 | $398,011 | $376,113 | |||||
Shares outstanding, as reported | 17,363 | 17,338 | 17,336 | 17,305 | 17,302 | |||||
Book value per share - GAAP | $29.00 | $28.71 | $27.93 | $27.15 | $25.90 | |||||
Tangible book value per share - Non-GAAP | $24.90 | $24.60 | $23.80 | $23.00 | $21.74 | |||||
Tangible Equity to Tangible Assets: | ||||||||||
Total tangible shareholders' equity | $432,365 | $426,468 | $412,612 | $398,011 | $376,113 | |||||
Total assets, as reported | $5,292,659 | $5,198,878 | $5,189,672 | $5,154,729 | $5,010,766 | |||||
Less: | ||||||||||
Goodwill | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | |||||
Identifiable intangible assets, net | 7,218 | 7,448 | 7,684 | 7,923 | 8,162 | |||||
Total tangible assets | $5,221,532 | $5,127,521 | $5,118,079 | $5,082,897 | $4,938,695 | |||||
Equity to assets - GAAP | 9.51 | % | 9.58 | % | 9.33 | % | 9.11 | % | 8.94 | % |
Tangible equity to tangible assets - Non-GAAP | 8.28 | % | 8.32 | % | 8.06 | % | 7.83 | % | 7.62 | % |
For the Three Months Ended | For the Twelve Months Ended | ||||||||||||||
Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Dec 31, | Dec 31, | |||||||||
Return on Average Tangible Assets: | |||||||||||||||
Net income, as reported | $15,536 | $18,814 | $17,273 | $17,495 | $17,036 | $69,118 | $68,432 | ||||||||
Total average assets, as reported | $5,227,035 | $5,181,016 | $5,171,562 | $5,096,103 | $4,840,158 | $5,169,321 | $4,681,866 | ||||||||
Less average balances of: | |||||||||||||||
Goodwill | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | ||||||||
Identifiable intangible assets, net | 7,330 | 7,562 | 7,800 | 8,040 | 8,278 | 7,681 | 8,642 | ||||||||
Total average tangible assets | $5,155,796 | $5,109,545 | $5,099,853 | $5,024,154 | $4,767,971 | $5,097,731 | $4,609,315 | ||||||||
Return on average assets - GAAP | 1.18 | % | 1.44 | % | 1.34 | % | 1.39 | % | 1.40 | % | 1.34 | % | 1.46 | % | |
Return on average tangible assets - Non-GAAP | 1.20 | % | 1.46 | % | 1.36 | % | 1.41 | % | 1.42 | % | 1.36 | % | 1.48 | % | |
Return on Average Tangible Equity: | |||||||||||||||
Net income available to common shareholders, as reported | $15,502 | $18,778 | $17,238 | $17,461 | $17,004 | $68,979 | $68,288 | ||||||||
Total average equity, as reported | $502,614 | $490,197 | $474,353 | $456,241 | $432,043 | $481,004 | $421,506 | ||||||||
Less average balances of: | |||||||||||||||
Goodwill | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | ||||||||
Identifiable intangible assets, net | 7,330 | 7,562 | 7,800 | 8,040 | 8,278 | 7,681 | 8,642 | ||||||||
Total average tangible equity | $431,375 | $418,726 | $402,644 | $384,292 | $359,856 | $409,414 | $348,955 | ||||||||
Return on average equity - GAAP | 12.24 | % | 15.20 | % | 14.58 | % | 15.52 | % | 15.61 | % | 14.34 | % | 16.20 | % | |
Return on average tangible equity - Non-GAAP | 14.26 | % | 17.79 | % | 17.17 | % | 18.43 | % | 18.75 | % | 16.85 | % | 19.57 | % |
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SOURCE Washington Trust Bancorp, Inc.
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