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| 8-K - WASHINGTON TRUST BANCORP, INC. FORM 8-K - WASHINGTON TRUST BANCORP INC | form8-k20120723.htm |
Exhibit 99.1
NASDAQ: WASH
Contact: Elizabeth B. Eckel
Senior Vice President, Marketing
Telephone: (401) 348-1309
E-mail: ebeckel@washtrust.com
Date: July 23, 2012
FOR IMMEDIATE RELEASE
Washington Trust Announces Record Earnings for Second Quarter 2012
Westerly, Rhode Island…Washington Trust Bancorp, Inc. (NASDAQ Global Select; symbol: WASH), parent company of The Washington Trust Company, today announced second quarter 2012 net income of $8.7 million, or 53 cents per diluted share. On a diluted earnings per share basis, second quarter 2012 results were up by 2 cents, or 4%, from first quarter 2012 and by 7 cents, or 15%, from second quarter 2011. The returns on average equity and average assets for the second quarter of 2012 were 11.98% and 1.16%, respectively, compared to 11.85% and 1.11%, respectively, for the first quarter of 2012.
“Washington Trust posted another record quarter with good performances along key business lines,” stated Joseph J. MarcAurele, Washington Trust Chairman, President and CEO. “We’re particularly pleased with our lending results in this challenging economy, as both our mortgage and commercial banking areas showed solid growth, while asset quality remained strong.”
Selected financial highlights for the second quarter of 2012 included:
• | Net interest margin increased to 3.30%, up three basis points from the first quarter of 2012, benefiting from improvements in the mix of interest-earning assets and reductions to funding costs. |
• | Mortgage banking revenues (net gains on loan sales and commissions on loans originated for others) totaled $3.0 million for the quarter, consistent with the prior quarter and reflective of continued strong mortgage origination volume. |
• | Asset quality indicators showed continued improvement in the second quarter of 2012. The balances of nonperforming assets (nonaccrual loans, nonaccrual investment securities and property acquired through foreclosure or repossession), loan delinquencies and troubled debt restructurings all declined from March 31, 2012 to June 30, 2012. |
• | The loan loss provision charged to earnings in the second quarter of 2012 was $600 thousand, compared to $900 thousand in the previous quarter. The provision in the second quarter 2012 was the lowest quarterly provision since the first quarter of 2008. |
• | Total loans were $2.2 billion at June 30, 2012, up by $58 million, or 3%, from March 31, 2012, led by solid growth of $53 million, or 5%, in the commercial loan portfolio. |
• | Total deposits were $2.1 billion at June 30, 2012, down slightly from March 31, 2012. |
Second quarter 2012 results also included the following transactions:
• | A gain of $348 thousand was recognized in the quarter on the sale of a bank property. A charge of $131 thousand was also recognized in connection with a planned branch closure. |
-M O R E-
Washington Trust
Page 2, July 23, 2012
• | Balance sheet management transactions, which are expected to result in net interest income enhancement of approximately $292 thousand in the second half of 2012 with continuing benefits in future years, were conducted in the latter portion of the quarter, including: |
◦ | Mortgage-backed securities of $6 million were sold and Federal Home Loan Bank of Boston (“FHLBB”) advances totaling $15 million were prepaid. These transactions resulted in second quarter 2012 net realized gains on securities of $217 thousand and debt prepayment penalty expense of $961 thousand. |
◦ | The terms of $36.7 million of FHLBB advances with original maturity dates in 2014 and 2015 were modified into longer terms maturing in 2017. |
• | A realized gain of $82 thousand was recorded in the quarter on the sale of perpetual preferred stock. |
• | The net impact of these transactions was a reduction of 2 cents per diluted share in the second quarter of 2012. |
Net Interest Income
The net interest margin for the second quarter of 2012 was 3.30%, up from 3.27% in the first quarter of 2012, reflecting continued improvement in the mix of interest-earning assets resulting from good loan growth and pay downs in the securities portfolio; as well as continued reductions of deposit costs. Second quarter 2012 net interest margin was up by 9 basis points from 3.21% in the second quarter of 2011, largely reflecting a reduction in the cost of funds.
While net interest margin improved, average interest-earning assets for the second quarter of 2012 declined by $21.4 million, or 1%, from the previous quarter and grew by $104.0 million, or 4%, from the second quarter of 2011.
As a result, net interest income of $22.4 million for the second quarter of 2012 was level when compared to the previous quarter and up by $1.3 million, or 6%, compared to the second quarter of 2011.
Noninterest Income
Second quarter 2012 noninterest income totaled $16.2 million, up by $1.9 million, or 14%, from the previous quarter and up by $2.9 million, or 22%, from the second quarter of 2011. Included in these results were net realized gains on sales of securities of $299 thousand recognized in the second quarter of 2012, resulting from the aforementioned balance sheet management transactions and sales of perpetual preferred stock. There were no sales of securities in the first quarter of 2012, while $226 thousand net realized gains on securities were recognized in the second quarter of 2011. Other-than-temporary impairment ("OTTI") losses on securities of $209 thousand were recorded in the first quarter of 2012, while no OTTI losses were recognized in either the second quarter of 2012 or 2011. Also included in the second quarter of 2012 and 2011 were gains on the sale of bank property of $348 thousand and $203 thousand, respectively, classified in other noninterest income. Excluding the net realized gains on sales of securities, OTTI losses and gains on sale of bank property, noninterest income for the second quarter of 2012 was up by $1.1 million, or 8%, from the previous quarter and up by $2.7 million, or 21%, from the second quarter of 2011.
Significant changes in noninterest income included the following:
• | Mortgage banking revenues totaled $3.0 million in the second quarter of 2012, consistent with the previous quarter and up by $2.5 million from the second quarter of 2011, reflecting another strong quarter of mortgage origination activity. |
-M O R E-
Washington Trust
Page 3, July 23, 2012
• | Second quarter 2012 wealth management revenues were $7.5 million, up by $288 thousand on a linked quarter basis and level when compared to the second quarter of 2011. On a linked quarter basis, the increase includes a $274 thousand increase in tax preparation fees, which are typically concentrated in the second quarter. Wealth management assets under administration totaled $4.1 billion at June 30, 2012, down by $90.4 million, or 2%, from March 31, 2012, primarily due to declines in the financial markets. |
• | Merchant processing fees totaled $2.7 million for the second quarter of 2012, up by $744 thousand on a linked quarter basis and comparable with the second quarter of 2011. On a linked quarter basis, the increase reflects a higher volume of transactions processed for existing and new customers. See discussion on the corresponding increase in merchant processing costs under the caption “Noninterest Expenses.” |
Noninterest Expenses
Noninterest expenses totaled $25.2 million for the second quarter of 2012, up by $1.8 million, or 8%, from the previous quarter and up by $3.0 million, or 13%, from the second quarter of 2011. Included in noninterest expenses in the second quarter of 2012 and 2011 were debt prepayment penalties of $961 thousand and $221 thousand, respectively. Also included in second quarter 2012 noninterest expenses was a charge of $131 thousand, classified in net occupancy expense, for the termination of an operating lease associated with the planned closure of a branch in September of 2012. Excluding the debt prepayment charges and the operating lease termination charge, noninterest expenses for the second quarter of 2012 increased by $737 thousand, or 3%, from the previous quarter and up by $2.1 million, or 9%, from the second quarter of 2011.
Significant changes in noninterest expense included the following:
• | Salaries and employee benefit costs amounted to $14.5 million in the second quarter of 2012, essentially unchanged from the previous quarter and up by $2.1 million, or 17%, from the second quarter of 2011. The increase from 2011 reflected higher amounts of commissions paid to mortgage originators, higher staffing levels in support of mortgage origination and other business lines and higher defined benefit plan cost primarily due to a lower discount rate. |
• | Merchant processing costs totaled $2.3 million in the second quarter of 2012, up by $657 thousand on a linked quarter basis and comparable with the second quarter of 2011. See the discussion above regarding the corresponding increase in merchant processing fee income. |
Income tax expense amounted to $4.0 million for the second quarter of 2012, compared to $3.9 million for the first quarter of 2012 and $3.3 million for the second quarter of 2011. The effective tax rate for the second quarter of 2012 was 31.7%.
Asset Quality
Nonperforming assets decreased to $18.8 million, or 0.62% of total assets, at June 30, 2012, from $23.6 million, or 0.78% of total assets, at March 31, 2012. At June 30, 2012, total past due loans amounted to $20.3 million, or 0.92% of total loans, down by $826 thousand from March 31, 2012. Loans classified as troubled debt restructurings totaled $13.3 million at June 30, 2012, down by $857 thousand from the balance at March 31, 2012.
The loan loss provision charged to earnings amounted to $600 thousand for the second quarter of 2012, down by $300 thousand
-M O R E-
Washington Trust
Page 4, July 23, 2012
from the first quarter of 2012 and down by $600 thousand from the second quarter of 2011. Net charge-offs amounted to $197 thousand in the second quarter of 2012, as compared to net charge-offs of $657 thousand in the first quarter of 2012 and $956 thousand in the second quarter of 2011.
Loans
Total loans rose by $58.5 million in the second quarter of 2012, led by the commercial portfolio with increases in commercial real estate loans of $28.6 million and other commercial loans of $24.0 million. Total loans are up by $66.7 million, or 3%, from December 31, 2011, including a 6% increase in total commercial loans.
Investment Securities
The investment securities portfolio amounted to $516.2 million at June 30, 2012, down by $42.1 million from March 31, 2012 and down by $77.2 million from December 31, 2011, primarily due to principal payments received on mortgage-backed securities not being reinvested as well as the sales of securities discussed above.
Deposits and Borrowings
Total deposits declined by $15.1 million, or 1%, in the second quarter of 2012, reflecting a seasonal decrease in government deposits. Total deposits were relatively flat compared to the balance at December 31, 2011. In the last twelve months, total deposits have increased $134.4 million, or 7%, including an increase of $87.4 million, or 18%, in DDA and NOW balances.
FHLBB advances totaled $524.0 million at June 30, 2012, up by $19.1 million from March 31, 2012 and down by $16.5 million from December 31, 2011. See discussion above regarding the balance sheet management transactions executed in the second quarter of 2012. Other borrowings were $481 thousand at June 30, 2012, compared to $819 thousand at March 31, 2012 and $19.8 million at December 31, 2011. The $19.3 million decline in other borrowings from the balance at December 31, 2011, was primarily due to the maturity of securities sold under repurchase agreements.
Capital Management
Capital levels continued to exceed the regulatory minimum levels to be considered well capitalized, with a total risk-based capital ratio of 13.15% at June 30, 2012, compared to 12.86% at December 31, 2011. Total shareholder's equity was $292.7 million at June 30, 2012, up by $11.4 million from the balance at December 31, 2011.
Dividends Declared
The Board of Directors declared a quarterly dividend of 23 cents per share for the quarter ended June 30, 2012. The dividend was paid on July 13, 2012 to shareholders of record on July 2, 2012.
-M O R E-
Washington Trust
Page 5, July 23, 2012
Conference Call
Washington Trust will host a conference call on Tuesday, July 24, 2012 at 8:30 a.m. Eastern Time to discuss second quarter results and business outlook. This call is being webcast and can be accessed through the Investor Relations section of the Washington Trust web site, www.washtrust.com. Individuals may dial in to the call at 1-877-317-6789. The international dial-in number is 1-412-317-6789 and the Canada dial-in number is 1-866-605-3852. A replay of the call will be posted in this same location on the web site shortly after the conclusion of the call. To listen to the replay, dial 1-877-344-7529. For international access, dial 1-412-317-0088. The Conference Number for replay is 10015568. The replay will be available until 9:00 a.m. on August 8, 2012.
Background
Washington Trust Bancorp, Inc. is the parent of The Washington Trust Company, a state-chartered bank headquartered in Westerly, Rhode Island. Founded in 1800, Washington Trust is the oldest community bank in the nation and is the largest independent bank headquartered in Rhode Island. Washington Trust offers a full range of financial services, including commercial banking, small business 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 The NASDAQ Global Select® Stock Market under the symbol WASH. Investor information is available on the Corporation’s web site: www.washtrust.com.
Forward-Looking Statements
This press release contains certain statements that are “forward-looking statements”. We may also make written or oral 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 the control of Washington Trust. These risks, uncertainties and other factors may cause the actual results, performance or achievements of Washington Trust 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: changes in general national, regional or international economic conditions or conditions affecting the banking or financial services industries or financial capital markets, volatility and disruption in national and international financial markets, government intervention in the U.S. financial system, 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 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 Washington Trust's competition, changes in legislation or regulation and accounting principles, policies and guidelines such as the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, 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, 2011, as filed with the Securities and Exchange Commission and as updated by our Quarterly Reports on Form 10-Q, 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 press release, and Washington Trust assumes 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 | ||||||||
CONSOLIDATED BALANCE SHEETS (unaudited) | ||||||||
(Dollars in thousands, except par value) | Jun 30, 2012 | Dec 31, 2011 | ||||||
Assets: | ||||||||
Cash and due from banks | $66,702 | $82,238 | ||||||
Short-term investments | 3,913 | 4,782 | ||||||
Mortgage loans held for sale, at fair value; amortized cost $22,708 in 2012 and $19,624 in 2011 | 23,530 | 20,340 | ||||||
Securities: | ||||||||
Available for sale, at fair value; amortized cost $452,733 in 2012 and $524,036 in 2011 | 469,167 | 541,253 | ||||||
Held to maturity, at cost; fair value $48,220 in 2012 and $52,499 in 2011 | 47,026 | 52,139 | ||||||
Total securities | 516,193 | 593,392 | ||||||
Federal Home Loan Bank stock, at cost | 40,418 | 42,008 | ||||||
Loans: | ||||||||
Commercial and other | 1,191,995 | 1,124,628 | ||||||
Residential real estate | 702,019 | 700,414 | ||||||
Consumer | 319,828 | 322,117 | ||||||
Total loans | 2,213,842 | 2,147,159 | ||||||
Less allowance for loan losses | 30,448 | 29,802 | ||||||
Net loans | 2,183,394 | 2,117,357 | ||||||
Premises and equipment, net | 27,223 | 26,028 | ||||||
Investment in bank-owned life insurance | 54,746 | 53,783 | ||||||
Goodwill | 58,114 | 58,114 | ||||||
Identifiable intangible assets, net | 6,528 | 6,901 | ||||||
Other assets | 60,289 | 59,155 | ||||||
Total assets | $3,041,050 | $3,064,098 | ||||||
Liabilities: | ||||||||
Deposits: | ||||||||
Demand deposits | $321,488 | $339,809 | ||||||
NOW accounts | 263,124 | 257,031 | ||||||
Money market accounts | 388,686 | 406,777 | ||||||
Savings accounts | 264,772 | 243,904 | ||||||
Time deposits | 892,383 | 878,794 | ||||||
Total deposits | 2,130,453 | 2,126,315 | ||||||
Federal Home Loan Bank advances | 523,989 | 540,450 | ||||||
Junior subordinated debentures | 32,991 | 32,991 | ||||||
Other borrowings | 481 | 19,758 | ||||||
Other liabilities | 60,402 | 63,233 | ||||||
Total liabilities | 2,748,316 | 2,782,747 | ||||||
Shareholders’ Equity: | ||||||||
Common stock of $.0625 par value; authorized 30,000,000 shares; issued 16,359,394 shares in 2012 and 16,292,471 shares in 2011 | 1,022 | 1,018 | ||||||
Paid-in capital | 90,022 | 88,030 | ||||||
Retained earnings | 203,726 | 194,198 | ||||||
Accumulated other comprehensive loss | (2,036 | ) | (1,895 | ) | ||||
Total shareholders’ equity | 292,734 | 281,351 | ||||||
Total liabilities and shareholders’ equity | $3,041,050 | $3,064,098 | ||||||
Washington Trust Bancorp, Inc. and Subsidiaries | ||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME (unaudited) | ||||||||||||||||
(Dollars and shares in thousands, except per share amounts) | Three Months | Six Months | ||||||||||||||
Periods ended June 30, | 2012 | 2011 | 2012 | 2011 | ||||||||||||
Interest income: | ||||||||||||||||
Interest and fees on loans | $25,344 | $24,707 | $50,707 | $48,966 | ||||||||||||
Interest on securities: | Taxable | 4,069 | 4,869 | 8,446 | 9,642 | |||||||||||
Nontaxable | 682 | 758 | 1,375 | 1,527 | ||||||||||||
Dividends on corporate stock and Federal Home Loan Bank stock | 78 | 66 | 155 | 133 | ||||||||||||
Other interest income | 17 | 13 | 37 | 37 | ||||||||||||
Total interest income | 30,190 | 30,413 | 60,720 | 60,305 | ||||||||||||
Interest expense: | ||||||||||||||||
Deposits | 3,385 | 4,030 | 6,819 | 8,232 | ||||||||||||
Federal Home Loan Bank advances | 3,998 | 4,685 | 8,083 | 9,417 | ||||||||||||
Junior subordinated debentures | 391 | 392 | 783 | 782 | ||||||||||||
Other interest expense | 5 | 242 | 239 | 483 | ||||||||||||
Total interest expense | 7,779 | 9,349 | 15,924 | 18,914 | ||||||||||||
Net interest income | 22,411 | 21,064 | 44,796 | 41,391 | ||||||||||||
Provision for loan losses | 600 | 1,200 | 1,500 | 2,700 | ||||||||||||
Net interest income after provision for loan losses | 21,811 | 19,864 | 43,296 | 38,691 | ||||||||||||
Noninterest income: | ||||||||||||||||
Wealth management services: | ||||||||||||||||
Trust and investment advisory fees | 5,819 | 5,822 | 11,597 | 11,498 | ||||||||||||
Mutual fund fees | 1,002 | 1,135 | 2,027 | 2,258 | ||||||||||||
Financial planning, commissions and other service fees | 652 | 553 | 1,034 | 834 | ||||||||||||
Wealth management services | 7,473 | 7,510 | 14,658 | 14,590 | ||||||||||||
Service charges on deposit accounts | 764 | 909 | 1,523 | 1,841 | ||||||||||||
Merchant processing fees | 2,732 | 2,682 | 4,720 | 4,626 | ||||||||||||
Card interchange fees | 626 | 581 | 1,169 | 1,068 | ||||||||||||
Income from bank-owned life insurance | 477 | 482 | 963 | 958 | ||||||||||||
Net gains on loan sales and commissions on loans originated for others | 3,015 | 537 | 6,112 | 1,062 | ||||||||||||
Net realized gains on securities | 299 | 226 | 299 | 197 | ||||||||||||
Net (losses) gains on interest rate swap contracts | (4 | ) | (35 | ) | 24 | 41 | ||||||||||
Equity in earnings (losses) of unconsolidated subsidiaries | 124 | (145 | ) | 87 | (289 | ) | ||||||||||
Other income | 668 | 538 | 1,060 | 921 | ||||||||||||
Noninterest income, excluding other-than-temporary impairment losses | 16,174 | 13,285 | 30,615 | 25,015 | ||||||||||||
Total other-than-temporary impairment losses on securities | — | — | (85 | ) | (54 | ) | ||||||||||
Portion of loss recognized in other comprehensive income (before tax) | — | — | (124 | ) | 21 | |||||||||||
Net impairment losses recognized in earnings | — | — | (209 | ) | (33 | ) | ||||||||||
Total noninterest income | 16,174 | 13,285 | 30,406 | 24,982 | ||||||||||||
Noninterest expense: | ||||||||||||||||
Salaries and employee benefits | 14,451 | 12,398 | 28,911 | 24,226 | ||||||||||||
Net occupancy | 1,527 | 1,236 | 3,053 | 2,557 | ||||||||||||
Equipment | 1,143 | 1,070 | 2,250 | 2,119 | ||||||||||||
Merchant processing costs | 2,320 | 2,345 | 3,983 | 4,014 | ||||||||||||
Outsourced services | 895 | 875 | 1,815 | 1,747 | ||||||||||||
FDIC deposit insurance costs | 426 | 464 | 884 | 1,187 | ||||||||||||
Legal, audit and professional fees | 519 | 467 | 1,001 | 959 | ||||||||||||
Advertising and promotion | 478 | 427 | 850 | 780 | ||||||||||||
Amortization of intangibles | 186 | 237 | 373 | 475 | ||||||||||||
Foreclosed property costs | 170 | 338 | 468 | 504 | ||||||||||||
Debt prepayment penalties | 961 | 221 | 961 | 221 | ||||||||||||
Other expenses | 2,152 | 2,186 | 4,078 | 4,215 | ||||||||||||
Total noninterest expense | 25,228 | 22,264 | 48,627 | 43,004 | ||||||||||||
Income before income taxes | 12,757 | 10,885 | 25,075 | 20,669 | ||||||||||||
Income tax expense | 4,044 | 3,320 | 7,924 | 6,304 | ||||||||||||
Net income | $8,713 | $7,565 | $17,151 | $14,365 | ||||||||||||
Weighted average common shares outstanding - basic | 16,358 | 16,252 | 16,344 | 16,225 | ||||||||||||
Weighted average common shares outstanding - diluted | 16,392 | 16,284 | 16,381 | 16,257 | ||||||||||||
Per share information: | Basic earnings per common share | $0.53 | $0.46 | $1.04 | $0.88 | |||||||||||
Diluted earnings per common share | $0.53 | $0.46 | $1.04 | $0.88 | ||||||||||||
Cash dividends declared per share | $0.23 | $0.22 | $0.46 | $0.44 | ||||||||||||
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||
SELECTED FINANCIAL HIGHLIGHTS (unaudited) | |||||||||||||||
At or for the Quarters Ended | |||||||||||||||
(Dollars and shares in thousands, except per share amounts) | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | ||||||||||
Financial Data: | |||||||||||||||
Total assets | $3,041,050 | $3,028,690 | $3,064,098 | $2,969,613 | $2,936,306 | ||||||||||
Total loans | 2,213,842 | 2,155,359 | 2,147,159 | 2,087,759 | 2,057,152 | ||||||||||
Total securities | 516,193 | 558,284 | 593,392 | 581,543 | 591,580 | ||||||||||
Total deposits | 2,130,453 | 2,145,562 | 2,126,315 | 2,086,150 | 1,996,043 | ||||||||||
Total shareholders' equity | 292,734 | 287,935 | 281,351 | 285,494 | 281,425 | ||||||||||
Net interest income | 22,411 | 22,385 | 22,015 | 21,549 | 21,064 | ||||||||||
Provision for loan losses | 600 | 900 | 1,000 | 1,000 | 1,200 | ||||||||||
Noninterest income, excluding OTTI losses | 16,174 | 14,441 | 14,826 | 13,114 | 13,285 | ||||||||||
Net OTTI losses recognized in earnings | — | (209 | ) | — | (158 | ) | — | ||||||||
Noninterest expenses | 25,228 | 23,399 | 24,774 | 22,595 | 22,264 | ||||||||||
Income tax expense | 4,044 | 3,880 | 3,290 | 3,328 | 3,320 | ||||||||||
Net income | 8,713 | 8,438 | 7,777 | 7,582 | 7,565 | ||||||||||
Share Data: | |||||||||||||||
Basic earnings per common share | $0.53 | $0.51 | $0.48 | $0.46 | $0.46 | ||||||||||
Diluted earnings per common share | $0.53 | $0.51 | $0.47 | $0.46 | $0.46 | ||||||||||
Dividends declared per share | $0.23 | $0.23 | $0.22 | $0.22 | $0.22 | ||||||||||
Book value per share | $17.89 | $17.61 | $17.27 | $17.54 | $17.30 | ||||||||||
Tangible book value per share - Non-GAAP (1) | $13.94 | $13.64 | $13.28 | $13.53 | $13.27 | ||||||||||
Market value per share | $24.38 | $24.14 | $23.86 | $19.78 | $22.97 | ||||||||||
Shares outstanding at end of period | 16,359 | 16,354 | 16,292 | 16,279 | 16,266 | ||||||||||
Weighted average common shares outstanding - basic | 16,358 | 16,330 | 16,288 | 16,278 | 16,252 | ||||||||||
Weighted average common shares outstanding - diluted | 16,392 | 16,370 | 16,327 | 16,294 | 16,284 | ||||||||||
Key Ratios: | |||||||||||||||
Return on average assets | 1.16 | % | 1.11 | % | 1.04 | % | 1.03 | % | 1.04 | % | |||||
Return on average tangible assets - Non-GAAP (1) | 1.18 | % | 1.14 | % | 1.07 | % | 1.06 | % | 1.07 | % | |||||
Return on average equity | 11.98 | % | 11.85 | % | 10.89 | % | 10.67 | % | 10.83 | % | |||||
Return on average tangible equity - Non-GAAP (1) | 15.41 | % | 15.35 | % | 14.10 | % | 13.86 | % | 14.16 | % | |||||
Capital Ratios: | |||||||||||||||
Tier 1 risk-based capital | 11.90% (i) | 11.96 | % | 11.61 | % | 11.73 | % | 11.72 | % | ||||||
Total risk-based capital | 13.15% (i) | 13.22 | % | 12.86 | % | 12.99 | % | 12.98 | % | ||||||
Tier 1 leverage ratio | 9.00% (i) | 8.75 | % | 8.70 | % | 8.69 | % | 8.61 | % | ||||||
Equity to assets | 9.63 | % | 9.51 | % | 9.18 | % | 9.61 | % | 9.58 | % | |||||
Tangible equity to tangible assets - Non-GAAP (1) | 7.66 | % | 7.53 | % | 7.21 | % | 7.58 | % | 7.52 | % | |||||
(i) - estimated | |||||||||||||||
Wealth Management Assets under | |||||||||||||||
Administration: | |||||||||||||||
Balance at beginning of period | $4,196,447 | $3,900,061 | $3,728,837 | $4,148,433 | $4,119,207 | ||||||||||
Net investment (depreciation) appreciation & income | (105,791 | ) | 298,155 | 215,449 | (374,961 | ) | 1,625 | ||||||||
Net client cash flows | 15,362 | (1,769 | ) | (36,815 | ) | (44,635 | ) | 27,601 | |||||||
Other (2) | — | — | (7,410 | ) | — | — | |||||||||
Balance at end of period | $4,106,018 | $4,196,447 | $3,900,061 | $3,728,837 | $4,148,433 | ||||||||||
(1) | See the section labeled “Supplemental Information - Non-GAAP Financial Measures” at the end of this document. |
(2) | Represents declassifications of largely low fee-paying assets from assets under administration due to a change in the scope and/or frequency of services provided by Washington Trust. The impact of this change on wealth management revenues was minimal. |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||
SELECTED FINANCIAL HIGHLIGHTS (unaudited) | |||||||
Six Months Ended | |||||||
(Dollars and shares in thousands, except per share amounts) | Jun 30, 2012 | Jun 30, 2011 | |||||
Financial Data: | |||||||
Net interest income | $44,796 | $41,391 | |||||
Provision for loan losses | 1,500 | 2,700 | |||||
Noninterest income, excluding OTTI losses | 30,615 | 25,015 | |||||
Net OTTI losses recognized in earnings | (209 | ) | (33 | ) | |||
Noninterest expenses | 48,627 | 43,004 | |||||
Income tax expense | 7,924 | 6,304 | |||||
Net income | 17,151 | 14,365 | |||||
Share Data: | |||||||
Basic earnings per common share | $1.04 | $0.88 | |||||
Diluted earnings per common share | $1.04 | $0.88 | |||||
Dividends declared per share | $0.46 | $0.44 | |||||
Weighted average common shares outstanding - basic | 16,344 | 16,225 | |||||
Weighted average common shares outstanding - diluted | 16,381 | 16,257 | |||||
Key Ratios: | |||||||
Return on average assets | 1.13 | % | 0.99 | % | |||
Return on average tangible assets - Non-GAAP (1) | 1.16 | % | 1.02 | % | |||
Return on average equity | 11.92 | % | 10.44 | % | |||
Return on average tangible equity - Non-GAAP (1) | 15.38 | % | 13.72 | % | |||
Asset Quality Data: | |||||||
Allowance for Loan Losses: | |||||||
Balance at beginning of period | $29,802 | $28,583 | |||||
Provision charged to earnings | 1,500 | 2,700 | |||||
Charge-offs | (1,377 | ) | (2,097 | ) | |||
Recoveries | 523 | 167 | |||||
Balance at end of period | $30,448 | $29,353 | |||||
Net Loan Charge-Offs (Recoveries): | |||||||
Commercial mortgages | ($381 | ) | $455 | ||||
Other commercial | 873 | 1,049 | |||||
Residential real estate mortgages | 177 | 263 | |||||
Consumer | 185 | 163 | |||||
Total | $854 | $1,930 | |||||
Net charge-offs to average loans (annualized) | 0.08 | % | 0.19 | % | |||
Wealth Management Assets Under Administration: | |||||||
Balance at beginning of period | $3,900,061 | $3,967,207 | |||||
Net investment appreciation & income | 192,364 | 147,188 | |||||
Net client cash flows | 13,593 | 34,038 | |||||
Balance at end of period | $4,106,018 | $4,148,433 | |||||
(1) | See the section labeled “Supplemental Information - Non-GAAP Financial Measures” at the end of this document. |
Washington Trust Bancorp, Inc. and Subsidiaries | ||||||||||||||
SELECTED FINANCIAL HIGHLIGHTS (unaudited) | ||||||||||||||
For the Quarters Ended | ||||||||||||||
Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | ||||||||||
Average Yield / Rate (taxable equivalent basis): | ||||||||||||||
Assets: | ||||||||||||||
Commercial mortgages and other commercial loans | 5.03 | % | 5.13 | % | 5.19 | % | 5.22 | % | 5.23 | % | ||||
Residential real estate loans, including mortgage loans held for sale | 4.40 | % | 4.51 | % | 4.46 | % | 4.58 | % | 4.72 | % | ||||
Consumer loans | 3.85 | % | 3.89 | % | 3.87 | % | 3.90 | % | 3.91 | % | ||||
Total loans | 4.65 | % | 4.74 | % | 4.74 | % | 4.80 | % | 4.86 | % | ||||
Cash, federal funds sold and other short-term investments | 0.23 | % | 0.15 | % | 0.19 | % | 0.20 | % | 0.15 | % | ||||
FHLBB stock | 0.54 | % | 0.50 | % | 0.30 | % | 0.26 | % | 0.31 | % | ||||
Taxable debt securities | 3.63 | % | 3.62 | % | 3.58 | % | 3.78 | % | 4.01 | % | ||||
Nontaxable debt securities | 5.93 | % | 5.92 | % | 5.82 | % | 5.82 | % | 5.88 | % | ||||
Corporate stocks | 7.58 | % | 7.16 | % | 5.89 | % | 7.58 | % | 7.50 | % | ||||
Total securities | 3.95 | % | 3.93 | % | 3.88 | % | 4.07 | % | 4.28 | % | ||||
Total interest-earning assets | 4.41 | % | 4.43 | % | 4.44 | % | 4.53 | % | 4.61 | % | ||||
Liabilities: | ||||||||||||||
NOW accounts | 0.06 | % | 0.08 | % | 0.10 | % | 0.10 | % | 0.10 | % | ||||
Money market accounts | 0.23 | % | 0.22 | % | 0.24 | % | 0.25 | % | 0.25 | % | ||||
Savings accounts | 0.11 | % | 0.11 | % | 0.12 | % | 0.12 | % | 0.12 | % | ||||
Time deposits | 1.35 | % | 1.41 | % | 1.45 | % | 1.48 | % | 1.57 | % | ||||
FHLBB advances | 3.25 | % | 3.14 | % | 3.44 | % | 3.49 | % | 3.80 | % | ||||
Junior subordinated debentures | 4.77 | % | 4.78 | % | 4.73 | % | 4.73 | % | 4.77 | % | ||||
Other | 2.07 | % | 4.98 | % | 4.59 | % | 4.50 | % | 4.48 | % | ||||
Total interest-bearing liabilities | 1.33 | % | 1.38 | % | 1.45 | % | 1.53 | % | 1.61 | % | ||||
Interest rate spread (taxable equivalent basis) | 3.08 | % | 3.05 | % | 2.99 | % | 3.00 | % | 3.00 | % | ||||
Net interest margin (taxable equivalent basis) | 3.30 | % | 3.27 | % | 3.22 | % | 3.22 | % | 3.21 | % | ||||
At June 30, 2012 | ||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||
(Dollars in thousands) | Cost (1) | Gains | Losses | Value | ||||||||||||
Securities Available for Sale: | ||||||||||||||||
Obligations of U.S. government-sponsored enterprises | $29,443 | $2,876 | $— | $32,319 | ||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | 305,757 | 18,535 | — | 324,292 | ||||||||||||
States and political subdivisions | 68,939 | 4,784 | — | 73,723 | ||||||||||||
Trust preferred securities: | ||||||||||||||||
Individual name issuers | 30,658 | — | (7,038 | ) | 23,620 | |||||||||||
Collateralized debt obligations | 4,047 | — | (3,280 | ) | 767 | |||||||||||
Corporate bonds | 13,889 | 659 | (102 | ) | 14,446 | |||||||||||
Total securities available for sale | 452,733 | 26,854 | (10,420 | ) | 469,167 | |||||||||||
Held to Maturity: | ||||||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | 47,026 | 1,194 | — | 48,220 | ||||||||||||
Total securities held to maturity | 47,026 | 1,194 | — | 48,220 | ||||||||||||
Total securities | $499,759 | $28,048 | ($10,420 | ) | $517,387 | |||||||||||
(1) | Net of other-than-temporary impairment losses recognized in earnings. |
Washington Trust Bancorp, Inc. and Subsidiaries | ||||||||||||||||
SELECTED FINANCIAL HIGHLIGHTS (unaudited) | ||||||||||||||||
Period End Balances At | ||||||||||||||||
(Dollars in thousands) | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | |||||||||||
Loans: | ||||||||||||||||
Commercial: | Mortgages | $664,410 | $642,012 | $624,813 | $573,355 | $562,976 | ||||||||||
Construction & development | 17,365 | 11,130 | 10,955 | 18,518 | 19,448 | |||||||||||
Other | 510,220 | 486,258 | 488,860 | 478,652 | 491,071 | |||||||||||
Total commercial | 1,191,995 | 1,139,400 | 1,124,628 | 1,070,525 | 1,073,495 | |||||||||||
Residential real estate: | Mortgages | 680,772 | 675,249 | 678,582 | 674,242 | 644,210 | ||||||||||
Homeowner construction | 21,247 | 21,708 | 21,832 | 17,226 | 14,137 | |||||||||||
Total residential real estate | 702,019 | 696,957 | 700,414 | 691,468 | 658,347 | |||||||||||
Consumer: | Home equity lines | 224,550 | 223,311 | 223,430 | 222,886 | 223,284 | ||||||||||
Home equity loans | 40,690 | 40,793 | 43,121 | 45,354 | 46,797 | |||||||||||
Other | 54,588 | 54,898 | 55,566 | 57,526 | 55,229 | |||||||||||
Total consumer | 319,828 | 319,002 | 322,117 | 325,766 | 325,310 | |||||||||||
Total loans | $2,213,842 | $2,155,359 | $2,147,159 | $2,087,759 | $2,057,152 | |||||||||||
At June 30, 2012 | |||||
(Dollars in thousands) | Balance | % of Total | |||
Commercial Real Estate Loans by Property Location: | |||||
Rhode Island, Connecticut, Massachusetts | $629,891 | 92.4 | % | ||
New York, New Jersey, Pennsylvania | 37,428 | 5.5 | % | ||
New Hampshire | 12,271 | 1.8 | % | ||
Other | 2,185 | 0.3 | % | ||
Total commercial real estate loans (1) | $681,775 | 100.0 | % | ||
(1) | Commercial real estate loans consist of commercial mortgages and construction and development loans. Commercial mortgages are loans secured by income producing property. |
At June 30, 2012 | |||||
(Dollars in thousands) | Balance | % of Total | |||
Residential Mortgages by Property Location: | |||||
Rhode Island, Connecticut, Massachusetts | $679,847 | 96.7 | % | ||
New York, Virginia, New Jersey, Maryland, Pennsylvania, District of Columbia | 9,749 | 1.4 | % | ||
Ohio | 4,935 | 0.7 | % | ||
New Hampshire | 4,021 | 0.6 | % | ||
Washington, Oregon | 1,390 | 0.2 | % | ||
Georgia | 1,110 | 0.2 | % | ||
New Mexico | 497 | 0.1 | % | ||
Other | 470 | 0.1 | % | ||
Total residential mortgages | $702,019 | 100.0 | % | ||
Period End Balances At | ||||||||||||||||
(Dollars in thousands) | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | |||||||||||
Deposits: | ||||||||||||||||
Demand deposits | $321,488 | $333,833 | $339,809 | $319,203 | $261,016 | |||||||||||
NOW accounts | 263,124 | 258,986 | 257,031 | 242,372 | 236,162 | |||||||||||
Money market accounts | 388,686 | 400,396 | 406,777 | 374,324 | 355,096 | |||||||||||
Savings accounts | 264,772 | 257,495 | 243,904 | 239,356 | 227,014 | |||||||||||
Time deposits | 892,383 | 894,852 | 878,794 | 910,895 | 916,755 | |||||||||||
Total deposits | $2,130,453 | $2,145,562 | $2,126,315 | $2,086,150 | $1,996,043 | |||||||||||
Out-of-market brokered certificates of deposits included in time deposits | $102,661 | $95,989 | $90,073 | $85,250 | $85,659 | |||||||||||
In-market deposits, excluding out-of-market brokered certificates of deposit | $2,027,792 | $2,049,573 | $2,036,242 | $2,000,900 | $1,910,384 | |||||||||||
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||||
SELECTED FINANCIAL HIGHLIGHTS (unaudited) | |||||||||||||||||||
Period End Balances At | |||||||||||||||||||
(Dollars in thousands) | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | ||||||||||||||
Asset Quality Data: | |||||||||||||||||||
Nonperforming Assets: | |||||||||||||||||||
Commercial mortgages | $2,597 | $5,099 | $5,709 | $6,367 | $7,476 | ||||||||||||||
Commercial construction and development | — | — | — | — | — | ||||||||||||||
Other commercial | 3,405 | 4,200 | 3,708 | 2,745 | 3,152 | ||||||||||||||
Residential real estate mortgages | 8,659 | 9,031 | 10,614 | 11,352 | 9,570 | ||||||||||||||
Consumer | 1,081 | 1,069 | 1,206 | 1,126 | 780 | ||||||||||||||
Total nonaccrual loans | $15,742 | $19,399 | $21,237 | $21,590 | $20,978 | ||||||||||||||
Nonaccrual investment securities | 767 | 750 | 887 | 796 | 934 | ||||||||||||||
Property acquired through foreclosure or repossession | 2,332 | 3,478 | 2,647 | 2,201 | 2,189 | ||||||||||||||
Total nonperforming assets | $18,841 | $23,627 | $24,771 | $24,587 | $24,101 | ||||||||||||||
Total past due loans to total loans | 0.92 | % | 0.98 | % | 1.22 | % | 1.05 | % | 1.19 | % | |||||||||
Nonperforming assets to total assets | 0.62 | % | 0.78 | % | 0.81 | % | 0.83 | % | 0.82 | % | |||||||||
Nonaccrual loans to total loans | 0.71 | % | 0.90 | % | 0.99 | % | 1.03 | % | 1.02 | % | |||||||||
Allowance for loan losses to nonaccrual loans | 193.42 | % | 154.88 | % | 140.33 | % | 137.29 | % | 139.92 | % | |||||||||
Allowance for loan losses to total loans | 1.38 | % | 1.39 | % | 1.39 | % | 1.42 | % | 1.43 | % | |||||||||
Troubled Debt Restructured Loans: | |||||||||||||||||||
Accruing troubled debt restructured loans: | |||||||||||||||||||
Commercial mortgages | $1,251 | $1,059 | $6,389 | $5,861 | $6,552 | ||||||||||||||
Other commercial | 6,916 | 7,329 | 6,625 | 4,059 | 4,026 | ||||||||||||||
Residential real estate mortgages | 570 | 935 | 1,481 | 1,158 | 2,279 | ||||||||||||||
Consumer | 159 | 174 | 171 | 174 | 317 | ||||||||||||||
Accruing troubled debt restructured loans | 8,896 | 9,497 | 14,666 | 11,252 | 13,174 | ||||||||||||||
Nonaccrual troubled debt restructured loans: | |||||||||||||||||||
Commercial mortgages | — | 348 | 91 | 1,209 | 2,555 | ||||||||||||||
Other commercial | 2,317 | 2,361 | 2,154 | 292 | 455 | ||||||||||||||
Residential real estate mortgages | 2,028 | 1,904 | 2,615 | 2,686 | 2,303 | ||||||||||||||
Consumer | 47 | 35 | 106 | 129 | 131 | ||||||||||||||
Nonaccrual troubled debt restructured loans | 4,392 | 4,648 | 4,966 | 4,316 | 5,444 | ||||||||||||||
Total troubled debt restructured loans | $13,288 | $14,145 | $19,632 | $15,568 | $18,618 | ||||||||||||||
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||||
SELECTED FINANCIAL HIGHLIGHTS (unaudited) | |||||||||||||||||||
Period End Balances At | |||||||||||||||||||
(Dollars in thousands) | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | ||||||||||||||
Past Due Loans: | |||||||||||||||||||
Loans 30-59 Days Past Due: | |||||||||||||||||||
Commercial mortgages | $411 | $104 | $1,621 | $874 | $1,507 | ||||||||||||||
Other commercial loans | 849 | 1,031 | 3,760 | 1,629 | 1,783 | ||||||||||||||
Residential real estate mortgages | 4,969 | 4,468 | 3,969 | 2,145 | 3,355 | ||||||||||||||
Consumer loans | 2,660 | 2,404 | 1,073 | 1,100 | 1,979 | ||||||||||||||
Loans 30-59 days past due | $8,889 | $8,007 | $10,423 | $5,748 | $8,624 | ||||||||||||||
Loans 60-89 Days Past Due: | |||||||||||||||||||
Commercial mortgages | $233 | $— | $315 | $328 | $1,013 | ||||||||||||||
Other commercial loans | 434 | 33 | 982 | 103 | 80 | ||||||||||||||
Residential real estate mortgages | 1,600 | 488 | 1,505 | 206 | 992 | ||||||||||||||
Consumer loans | 677 | 219 | 263 | 420 | 120 | ||||||||||||||
Loans 60-89 days past due | $2,944 | $740 | $3,065 | $1,057 | $2,205 | ||||||||||||||
Loans 90 Days or more Past Due: | |||||||||||||||||||
Commercial mortgages | $2,339 | $4,676 | $4,995 | $5,510 | $5,553 | ||||||||||||||
Other commercial loans | 1,714 | 2,521 | 633 | 1,209 | 1,378 | ||||||||||||||
Residential real estate mortgages | 4,039 | 4,843 | 6,283 | 7,826 | 6,549 | ||||||||||||||
Consumer loans | 362 | 326 | 874 | 649 | 245 | ||||||||||||||
Loans 90 days or more past due | $8,454 | $12,366 | $12,785 | $15,194 | $13,725 | ||||||||||||||
Total Past Due Loans: | |||||||||||||||||||
Commercial mortgages | $2,983 | $4,780 | $6,931 | $6,712 | $8,073 | ||||||||||||||
Other commercial loans | 2,997 | 3,585 | 5,375 | 2,941 | 3,241 | ||||||||||||||
Residential real estate mortgages | 10,608 | 9,799 | 11,757 | 10,177 | 10,896 | ||||||||||||||
Consumer loans | 3,699 | 2,949 | 2,210 | 2,169 | 2,344 | ||||||||||||||
Total past due loans | $20,287 | $21,113 | $26,273 | $21,999 | $24,554 | ||||||||||||||
Nonaccrual loans included in past due loans | $12,719 | $14,747 | $17,588 | $16,585 | $16,705 | ||||||||||||||
For the Quarters Ended | |||||||||||||||||||
(Dollars in thousands) | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | ||||||||||||||
Allowance for Loan Losses: | |||||||||||||||||||
Balance at beginning of period | $30,045 | $29,802 | $29,641 | $29,353 | $29,109 | ||||||||||||||
Provision charged to earnings | 600 | 900 | 1,000 | 1,000 | 1,200 | ||||||||||||||
Charge-offs | (696 | ) | (681 | ) | (920 | ) | (818 | ) | (1,044 | ) | |||||||||
Recoveries | 499 | 24 | 81 | 106 | 88 | ||||||||||||||
Balance at end of period | $30,448 | $30,045 | $29,802 | $29,641 | $29,353 | ||||||||||||||
Net Loan Charge-Offs (Recoveries): | |||||||||||||||||||
Commercial mortgages | ($388 | ) | $7 | $249 | $249 | $122 | |||||||||||||
Other commercial | 549 | 324 | 39 | 286 | 541 | ||||||||||||||
Residential real estate mortgages | (47 | ) | 224 | 273 | 100 | 146 | |||||||||||||
Consumer | 83 | 102 | 278 | 77 | 147 | ||||||||||||||
Total | $197 | $657 | $839 | $712 | $956 | ||||||||||||||
The following tables present 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. For dividends on corporate stocks, the 70% federal dividends received deduction is also used in the calculation of tax equivalency. Unrealized gains (losses) on available for sale securities are excluded from the average balance and yield calculations. Nonaccrual and renegotiated loans, as well as interest earned on these loans (to the extent recognized in the Consolidated Statements of Income) are included in amounts presented for loans.
Washington Trust Bancorp, Inc. and Subsidiaries | ||||||||||||||||||
CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited) | ||||||||||||||||||
Three months ended June 30, | 2012 | 2011 | ||||||||||||||||
Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | |||||||||||||
(Dollars in thousands) | ||||||||||||||||||
Assets: | ||||||||||||||||||
Commercial mortgages and other commercial loans | $1,166,545 | $14,590 | 5.03 | % | $1,065,619 | $13,900 | 5.23 | % | ||||||||||
Residential real estate loans, including mortgage loans held for sale | 714,154 | 7,809 | 4.40 | % | 656,570 | 7,732 | 4.72 | % | ||||||||||
Consumer loans | 320,442 | 3,067 | 3.85 | % | 324,890 | 3,166 | 3.91 | % | ||||||||||
Total loans | 2,201,141 | 25,466 | 4.65 | % | 2,047,079 | 24,798 | 4.86 | % | ||||||||||
Cash, federal funds sold and short-term investments | 30,078 | 17 | 0.23 | % | 34,166 | 13 | 0.15 | % | ||||||||||
FHLBB stock | 40,418 | 54 | 0.54 | % | 42,008 | 32 | 0.31 | % | ||||||||||
Taxable debt securities | 451,207 | 4,069 | 3.63 | % | 486,905 | 4,869 | 4.01 | % | ||||||||||
Nontaxable debt securities | 70,462 | 1,039 | 5.93 | % | 78,447 | 1,150 | 5.88 | % | ||||||||||
Corporate stocks | 1,804 | 34 | 7.58 | % | 2,513 | 47 | 7.50 | % | ||||||||||
Total securities | 523,473 | 5,142 | 3.95 | % | 567,865 | 6,066 | 4.28 | % | ||||||||||
Total interest-earning assets | 2,795,110 | 30,679 | 4.41 | % | 2,691,118 | 30,909 | 4.61 | % | ||||||||||
Noninterest-earning assets | 222,057 | 212,968 | ||||||||||||||||
Total assets | $3,017,167 | $2,904,086 | ||||||||||||||||
Liabilities and Shareholders' Equity: | ||||||||||||||||||
NOW accounts | $254,528 | $39 | 0.06 | % | $229,746 | $60 | 0.10 | % | ||||||||||
Money market accounts | 405,241 | 232 | 0.23 | % | 393,945 | 249 | 0.25 | % | ||||||||||
Savings accounts | 258,824 | 72 | 0.11 | % | 224,588 | 69 | 0.12 | % | ||||||||||
Time deposits | 905,466 | 3,042 | 1.35 | % | 935,813 | 3,652 | 1.57 | % | ||||||||||
FHLBB advances | 494,257 | 3,998 | 3.25 | % | 494,989 | 4,685 | 3.80 | % | ||||||||||
Junior subordinated debentures | 32,991 | 391 | 4.77 | % | 32,991 | 392 | 4.77 | % | ||||||||||
Other | 973 | 5 | 2.07 | % | 21,663 | 242 | 4.48 | % | ||||||||||
Total interest-bearing liabilities | 2,352,280 | 7,779 | 1.33 | % | 2,333,735 | 9,349 | 1.61 | % | ||||||||||
Demand deposits | 321,094 | 251,585 | ||||||||||||||||
Other liabilities | 52,939 | 39,485 | ||||||||||||||||
Shareholders' equity | 290,854 | 279,281 | ||||||||||||||||
Total liabilities and shareholders' equity | $3,017,167 | $2,904,086 | ||||||||||||||||
Net interest income (FTE) | $22,900 | $21,560 | ||||||||||||||||
Interest rate spread | 3.08 | % | 3.00 | % | ||||||||||||||
Net interest margin | 3.30 | % | 3.21 | % | ||||||||||||||
Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:
(Dollars in thousands) | |||||||
Three months ended June 30, | 2012 | 2011 | |||||
Commercial mortgages and other commercial loans | $122 | $91 | |||||
Nontaxable debt securities | 357 | 392 | |||||
Corporate stocks | 10 | 13 | |||||
Total | $489 | $496 | |||||
Washington Trust Bancorp, Inc. and Subsidiaries | ||||||||||||||||||
CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited) | ||||||||||||||||||
Six months ended June 30, | 2012 | 2011 | ||||||||||||||||
Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | |||||||||||||
(Dollars in thousands) | ||||||||||||||||||
Assets: | ||||||||||||||||||
Commercial mortgages and other commercial loans | $1,144,114 | $28,888 | 5.08 | % | $1,051,577 | $27,406 | 5.26 | % | ||||||||||
Residential real estate loans, including mortgage loans held for sale | 717,430 | 15,884 | 4.45 | % | 653,938 | 15,432 | 4.76 | % | ||||||||||
Consumer loans | 320,195 | 6,164 | 3.87 | % | 324,471 | 6,310 | 3.92 | % | ||||||||||
Total loans | 2,181,739 | 50,936 | 4.69 | % | 2,029,986 | 49,148 | 4.88 | % | ||||||||||
Cash, federal funds sold and short-term investments | 41,196 | 37 | 0.18 | % | 39,029 | 37 | 0.19 | % | ||||||||||
FHLBB stock | 41,012 | 106 | 0.52 | % | 42,008 | 64 | 0.31 | % | ||||||||||
Taxable debt securities | 468,828 | 8,446 | 3.62 | % | 489,544 | 9,642 | 3.97 | % | ||||||||||
Nontaxable debt securities | 71,185 | 2,098 | 5.93 | % | 78,947 | 2,316 | 5.92 | % | ||||||||||
Corporate stocks | 1,828 | 67 | 7.37 | % | 2,512 | 96 | 7.71 | % | ||||||||||
Total securities | 541,841 | 10,611 | 3.94 | % | 571,003 | 12,054 | 4.26 | % | ||||||||||
Total interest-earning assets | 2,805,788 | 61,690 | 4.42 | % | 2,682,026 | 61,303 | 4.61 | % | ||||||||||
Noninterest-earning assets | 221,430 | 212,379 | ||||||||||||||||
Total assets | $3,027,218 | $2,894,405 | ||||||||||||||||
Liabilities and Shareholders' Equity: | ||||||||||||||||||
NOW accounts | $250,390 | $85 | 0.07 | % | $227,375 | $118 | 0.10 | % | ||||||||||
Money market accounts | 408,647 | 457 | 0.22 | % | 396,614 | 572 | 0.29 | % | ||||||||||
Savings accounts | 253,837 | 142 | 0.11 | % | 222,481 | 144 | 0.13 | % | ||||||||||
Time deposits | 895,405 | 6,135 | 1.38 | % | 941,093 | 7,398 | 1.59 | % | ||||||||||
FHLBB advances | 509,012 | 8,083 | 3.19 | % | 485,233 | 9,417 | 3.91 | % | ||||||||||
Junior subordinated debentures | 32,991 | 783 | 4.77 | % | 32,991 | 782 | 4.78 | % | ||||||||||
Other | 9,938 | 239 | 4.84 | % | 22,389 | 483 | 4.35 | % | ||||||||||
Total interest-bearing liabilities | 2,360,220 | 15,924 | 1.36 | % | 2,328,176 | 18,914 | 1.64 | % | ||||||||||
Demand deposits | 326,159 | 250,550 | ||||||||||||||||
Other liabilities | 53,012 | 40,520 | ||||||||||||||||
Shareholders' equity | 287,827 | 275,159 | ||||||||||||||||
Total liabilities and shareholders' equity | $3,027,218 | $2,894,405 | ||||||||||||||||
Net interest income (FTE) | $45,766 | $42,389 | ||||||||||||||||
Interest rate spread | 3.06 | % | 2.97 | % | ||||||||||||||
Net interest margin | 3.28 | % | 3.19 | % | ||||||||||||||
Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:
(Dollars in thousands) | |||||||
Six months ended June 30, | 2012 | 2011 | |||||
Commercial mortgages and other commercial loans | $229 | $182 | |||||
Nontaxable debt securities | 723 | 789 | |||||
Corporate stocks | 18 | 27 | |||||
Total | $970 | $998 | |||||
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||
SUPPLEMENTAL INFORMATION - Non-GAAP Financial Measures (unaudited) | |||||||||||||||
At or for the Quarters Ended | |||||||||||||||
(Dollars in thousands, except per share amounts) | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | ||||||||||
Calculation of Tangible Book Value per Share: | |||||||||||||||
Total shareholders' equity at end of period | $292,734 | $287,935 | $281,351 | $285,494 | $281,425 | ||||||||||
Less: | |||||||||||||||
Goodwill | 58,114 | 58,114 | 58,114 | 58,114 | 58,114 | ||||||||||
Identifiable intangible assets, net | 6,528 | 6,714 | 6,901 | 7,147 | 7,377 | ||||||||||
Total tangible shareholders' equity at end of period | $228,092 | $223,107 | $216,336 | $220,233 | $215,934 | ||||||||||
Shares outstanding at end of period | 16,359 | 16,354 | 16,292 | 16,279 | 16,266 | ||||||||||
Book value per share - GAAP | $17.89 | $17.61 | $17.27 | $17.54 | $17.30 | ||||||||||
Tangible book value per share - Non-GAAP | $13.94 | $13.64 | $13.28 | $13.53 | $13.27 | ||||||||||
Calculation of Tangible Equity to Tangible Assets: | |||||||||||||||
Total tangible shareholders' equity at end of period | $228,092 | $223,107 | $216,336 | $220,233 | $215,934 | ||||||||||
Total assets at end of period | $3,041,050 | $3,028,690 | $3,064,098 | $2,969,613 | $2,936,306 | ||||||||||
Less: | |||||||||||||||
Goodwill | 58,114 | 58,114 | 58,114 | 58,114 | 58,114 | ||||||||||
Identifiable intangible assets, net | 6,528 | 6,714 | 6,901 | 7,147 | 7,377 | ||||||||||
Total tangible assets at end of period | $2,976,408 | $2,963,862 | $2,999,083 | $2,904,352 | $2,870,815 | ||||||||||
Equity to assets - GAAP | 9.63 | % | 9.51 | % | 9.18 | % | 9.61 | % | 9.58 | % | |||||
Tangible equity to tangible assets - Non-GAAP | 7.66 | % | 7.53 | % | 7.21 | % | 7.58 | % | 7.52 | % | |||||
Calculation of Return on Average Tangible Assets: | |||||||||||||||
Net income | $8,713 | $8,438 | $7,777 | $7,582 | $7,564 | ||||||||||
Total average assets | $3,017,167 | $3,037,270 | $2,983,648 | $2,935,146 | $2,904,086 | ||||||||||
Less: | |||||||||||||||
Average goodwill | 58,114 | 58,114 | 58,114 | 58,114 | 58,114 | ||||||||||
Average identifiable intangible assets, net | 6,619 | 6,805 | 7,025 | 7,257 | 7,493 | ||||||||||
Total average tangible assets | $2,952,434 | $2,972,351 | $2,918,509 | $2,869,775 | $2,838,479 | ||||||||||
Return on average assets - GAAP | 1.16 | % | 1.11 | % | 1.04 | % | 1.03 | % | 1.04 | % | |||||
Return on average tangible assets - Non-GAAP | 1.18 | % | 1.14 | % | 1.07 | % | 1.06 | % | 1.07 | % | |||||
Calculation of Return on Average Tangible Equity: | |||||||||||||||
Net income | $8,713 | $8,438 | $7,777 | $7,582 | $7,564 | ||||||||||
Total average shareholders' equity | $290,854 | $284,801 | $285,707 | $284,244 | $279,281 | ||||||||||
Less: | |||||||||||||||
Average goodwill | 58,114 | 58,114 | 58,114 | 58,114 | 58,114 | ||||||||||
Average identifiable intangible assets, net | 6,619 | 6,805 | 7,025 | 7,257 | 7,493 | ||||||||||
Total average tangible shareholders' equity | $226,121 | $219,882 | $220,568 | $218,873 | $213,674 | ||||||||||
Return on average shareholders' equity - GAAP | 11.98 | % | 11.85 | % | 10.89 | % | 10.67 | % | 10.83 | % | |||||
Return on average tangible shareholders' equity - Non-GAAP | 15.41 | % | 15.35 | % | 14.10 | % | 13.86 | % | 14.16 | % | |||||
Washington Trust Bancorp, Inc. and Subsidiaries | ||||||
SUPPLEMENTAL INFORMATION - Non-GAAP Financial Measures (unaudited) | ||||||
Six Months Ended | ||||||
(Dollars in thousands) | Jun 30, 2012 | Jun 30, 2011 | ||||
Calculation of return on average tangible assets: | ||||||
Net income | $17,151 | $14,364 | ||||
Total average assets | $3,027,218 | $2,894,405 | ||||
Less: | ||||||
Average goodwill | 58,114 | 58,114 | ||||
Average identifiable intangible assets, net | 6,712 | 7,611 | ||||
Total average tangible assets | $2,962,392 | $2,828,680 | ||||
Return on average assets - GAAP | 1.13 | % | 0.99 | % | ||
Return on average tangible assets - Non-GAAP | 1.16 | % | 1.02 | % | ||
Calculation of return on average tangible equity: | ||||||
Net income | $17,151 | $14,364 | ||||
Total average shareholders' equity | $287,827 | $275,159 | ||||
Less: | ||||||
Average goodwill | 58,114 | 58,114 | ||||
Average identifiable intangible assets, net | 6,712 | 7,611 | ||||
Total average tangible shareholders' equity | $223,001 | $209,434 | ||||
Return on average shareholders' equity - GAAP | 11.92 | % | 10.44 | % | ||
Return on average tangible shareholders' equity - Non-GAAP | 15.38 | % | 13.72 | % | ||