Attached files
| file | filename |
|---|---|
| 8-K - 8-K - WASHINGTON TRUST BANCORP INC | form8-k2013q2.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 22, 2013
FOR IMMEDIATE RELEASE
Washington Trust Announces Second Quarter 2013 Earnings
Westerly, Rhode Island…Washington Trust Bancorp, Inc. (NASDAQ Global Select; symbol: WASH), parent company of The Washington Trust Company, today announced second quarter 2013 net income of $9.0 million, or 54 cents per diluted share. These results compare to first quarter of 2013 net income of $7.4 million, or 45 cents per diluted share, and second quarter of 2012 net income of $8.7 million, or 53 cents per diluted share.
“Washington Trust posted another quarter of solid operating results, with a continuation of strong commercial loan growth and healthy mortgage banking activity,” stated Joseph J. MarcAurele, Chairman, President and CEO. “We continue to attract and build customer relationships across all business lines, reinforcing our position as Rhode Island’s Bank of Choice.”
Highlights for the quarter or at June 30th include:
• | Total loans were $2.38 billion at June 30, 2013, up by $59.9 million, or 3%, in the second quarter of 2013, led by growth of $33.7 million , or 4%, in the commercial real estate portfolio. |
• | Deposits totaled $2.30 billion at June 30, 2013, down slightly from March 31, 2013, reflecting seasonal outflow. Total deposits were up by $174.2 million, or 8%, in the last twelve months. |
• | The returns on average equity and average assets for the second quarter of 2013 were 11.84% and 1.18%, respectively. Comparable amounts for the first quarter of 2013 were 9.91% and 0.98%, respectively. |
2013 results also included the following transactions:
• | During the second quarter of 2013, certain junior subordinated debentures were redeemed and as a result, unamortized debt issuance costs of $244 thousand were expensed and classified as interest expense in the quarter. The after-tax impact of this was 1 cent per diluted share. |
• | Included in salaries and employee benefits expense in the second quarter of 2013 was $270 thousand for severance related matters. The after-tax impact of this was 1 cent per diluted share. |
• | In the first quarter of 2013, the Corporation had recognized an other-than-temporary impairment ("OTTI") charge to earnings on a trust preferred collateralized debt obligation investment security of $2.8 million (or 11 cents per diluted share). There were no such charges in the second quarter of 2013. |
Washington Trust
Page 2, July 22, 2013
Net Interest Income
Net interest income totaled $22.4 million for the second quarter of 2013, essentially flat compared to the first quarter of 2013. The net interest margin for the second quarter of 2013 was 3.26%, compared to 3.32% for the first quarter of 2013.
In connection with the June 2013 redemption of $10.3 million of junior subordinated debentures, unamortized debt issuance costs of $244 thousand were expensed and classified as interest expense in the quarter. The impact of this item was an increase of 4 basis points on the cost of funds and a reduction of 4 basis points on the net interest margin for the second quarter 2013. The rate on this debt was approximately 5.69% at the time of redemption, which included the cost of a related interest rate swap that matured upon the redemption event.
Average interest-earning assets for the second quarter of 2013 increased by $14.4 million, while the yield on interest-earning assets declined by 7 basis points from the previous quarter. Average loan balances grew by $57 million, which were partially offset by payments received on mortgage-backed securities in the investment security portfolio.
Noninterest Income
Noninterest income totaled $16.4 million for the second quarter of 2013, compared to $13.2 million for the previous quarter. In the first quarter 2013, OTTI charges of $2.8 million were recognized. Excluding this item, noninterest income increased by $456 thousand, or 3 %, on a linked quarter basis. Other significant linked quarter changes included the following:
• | Wealth management revenues were up by $438 thousand, or 6%, including a $344 thousand increase in tax preparation fees, which are typically concentrated in the second quarter. |
• | Mortgage banking revenues decreased by $681 thousand, or 16%, reflecting a lower level of mortgage loan refinancing activity due to rising market interest rates. In the second quarter of 2013, residential loans sold to the secondary market amounted to $132 million, compared to $153 million in the previous quarter. |
• | Merchant processing fee revenue rose by $636 thousand, or 32%, on a linked quarter basis, reflecting an increase in the volume of transactions processed for customers. See discussion regarding corresponding increase in merchant processing costs described below. |
Noninterest Expenses
Noninterest expenses totaled $25.0 million for the second quarter of 2013, compared to $24.2 million for the previous quarter. Included in salaries and employee benefits expense in the second quarter of 2013 was $270 thousand for severance related matters. Excluding this item, noninterest expenses increased by $551 thousand, or 2 %, on a linked quarter basis, largely due to a $538 thousand, or 32%, increase in merchant processing costs. See the discussion above regarding the corresponding increase in merchant processing fee income.
Asset Quality
Total nonaccrual loans decreased by $5.6 million to $20.0 million, or 0.84% of total loans, at June 30, 2013, from $25.7 million, or 1.10%, at March 31, 2013, largely reflecting charge-offs and payoffs on commercial loans. Total past due loans amounted to $26.1 million, or 1.09% of total loans, at June 30, 2013, compared to $26.2 million, or 1.13%, at March 31, 2013.
Washington Trust
Page 3, July 22, 2013
The loan loss provision charged to earnings amounted to $700 thousand for the second quarter of 2013, compared to $600 thousand for the first quarter of 2013. Net charge-offs amounted to $4.0 million in the second quarter of 2013 and was comprised primarily of a $4.0 million charge-off on one commercial mortgage loan. The remaining carrying value of this loan was $1.0 million at June 30, 2013. Net charge-offs totaled $334 thousand in the first quarter of 2013.
The allowance for loan losses was $27.9 million, or 1.17% of total loans, at June 30, 2013 compared to $31.1 million, or 1.34% of total loans, at March 31, 2013. The decline in the ratio of the allowance for loan losses to total loans reflects charge-offs and a decrease in specific reserves on impaired loans.
Loans
Total loans rose by $59.9 million in the second quarter of 2013, with increases in commercial loans of $33.0 million, or 3%, and residential loans of $24.5 million, or 3%. Total loans were up by $91.0 million, or 4%, from December 31, 2012 and by $171.1 million, or 8%, from June 30, 2012.
Investment Securities
The investment securities portfolio declined by $36.6 million from March 31, 2013 and by $65.4 million from December 31, 2012, largely due to principal payments received on mortgage-backed securities which were not reinvested in the securities portfolio.
Deposits and Borrowings
Total deposits decreased by $15.0 million from March 31, 2013 and by $8.0 million from December 31, 2012. In the last twelve months, total deposits grew by $174.2 million, or 8%, including an increase of $75.3 million, or 13%, in demand deposits and NOW account balances.
FHLBB advances increased by $32.1 million from March 31, 2013 and by $12.2 million from December 31, 2012. Junior subordinated debentures declined by $10.3 million from both March 31, 2013 and December 31, 2012, reflecting the June 2013 redemption of the junior subordinated debentures issued to and held by Washington Preferred Capital Trust.
Capital Management
Capital levels continued to exceed the regulatory minimum levels to be considered well capitalized, with a total risk-based capital ratio of 12.93% at June 30, 2013, compared to 13.26% at December 31, 2012. Total shareholder's equity was $303.4 million at June 30, 2013, up by $7.7 million from the balance at December 31, 2012.
Dividends Declared
The Board of Directors declared a quarterly dividend of 25 cents per share for the quarter ended June 30, 2013. The dividend was paid on July 12, 2013 to shareholders of record on July 1, 2013.
Conference Call
Washington Trust will host a conference call to discuss second quarter results on Tuesday, July 23, 2013 at 8:30 am (Eastern Time). Individuals may dial in to the call at 1-888-317-6016. An audio replay of the call will be available by dialing 1-877-344-7529 and
Washington Trust
Page 4, July 22, 2013
entering Conference Number 10030244; the audio replay will be available until 9:00 a.m. on August 7, 2013. A webcast of the call will be posted in the Investor Relations section of Washington Trust's web site, www.washtrust.com, shortly after the conclusion of the call and will be available through September 30, 2013.
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 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: continued weakness 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, 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, 2012, 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, 2013 | Dec 31, 2012 | ||||||
Assets: | ||||||||
Cash and due from banks | $79,903 | $73,474 | ||||||
Short-term investments | 3,764 | 19,176 | ||||||
Mortgage loans held for sale, at fair value; amortized cost $29,163 in 2013 and $48,370 in 2012 | 28,889 | 50,056 | ||||||
Securities: | ||||||||
Available for sale, at fair value; amortized cost $309,421 in 2013 and $363,408 in 2012 | 316,714 | 375,498 | ||||||
Held to maturity, at cost; fair value $33,762 in 2013 and $41,420 in 2012 | 33,803 | 40,381 | ||||||
Total securities | 350,517 | 415,879 | ||||||
Federal Home Loan Bank stock, at cost | 37,730 | 40,418 | ||||||
Loans: | ||||||||
Commercial | 1,310,114 | 1,252,419 | ||||||
Residential real estate | 748,871 | 717,681 | ||||||
Consumer | 325,995 | 323,903 | ||||||
Total loans | 2,384,980 | 2,294,003 | ||||||
Less allowance for loan losses | 27,884 | 30,873 | ||||||
Net loans | 2,357,096 | 2,263,130 | ||||||
Premises and equipment, net | 26,392 | 27,232 | ||||||
Investment in bank-owned life insurance | 55,750 | 54,823 | ||||||
Goodwill | 58,114 | 58,114 | ||||||
Identifiable intangible assets, net | 5,827 | 6,173 | ||||||
Other assets | 57,325 | 63,409 | ||||||
Total assets | $3,061,307 | $3,071,884 | ||||||
Liabilities: | ||||||||
Deposits: | ||||||||
Demand deposits | $358,797 | $379,889 | ||||||
NOW accounts | 301,096 | 291,174 | ||||||
Money market accounts | 540,012 | 496,402 | ||||||
Savings accounts | 293,405 | 274,934 | ||||||
Time deposits | 811,299 | 870,232 | ||||||
Total deposits | 2,304,609 | 2,312,631 | ||||||
Federal Home Loan Bank advances | 373,341 | 361,172 | ||||||
Junior subordinated debentures | 22,681 | 32,991 | ||||||
Other borrowings | 199 | 1,212 | ||||||
Other liabilities | 57,107 | 68,226 | ||||||
Total liabilities | 2,757,937 | 2,776,232 | ||||||
Shareholders’ Equity: | ||||||||
Common stock of $.0625 par value; authorized 30,000,000 shares; issued and outstanding 16,487,305 shares in 2013 and 16,379,771 shares in 2012 | 1,030 | 1,024 | ||||||
Paid-in capital | 93,274 | 91,453 | ||||||
Retained earnings | 221,761 | 213,674 | ||||||
Accumulated other comprehensive loss | (12,695 | ) | (10,499 | ) | ||||
Total shareholders’ equity | 303,370 | 295,652 | ||||||
Total liabilities and shareholders’ equity | $3,061,307 | $3,071,884 | ||||||
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, | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Interest income: | ||||||||||||||||
Interest and fees on loans | $25,513 | $25,344 | $50,736 | $50,707 | ||||||||||||
Interest on securities: | Taxable | 2,576 | 4,069 | 5,421 | 8,446 | |||||||||||
Nontaxable | 647 | 682 | 1,306 | 1,375 | ||||||||||||
Dividends on corporate stock and Federal Home Loan Bank stock | 39 | 78 | 77 | 155 | ||||||||||||
Other interest income | 24 | 17 | 52 | 37 | ||||||||||||
Total interest income | 28,799 | 30,190 | 57,592 | 60,720 | ||||||||||||
Interest expense: | ||||||||||||||||
Deposits | 3,096 | 3,385 | 6,290 | 6,819 | ||||||||||||
Federal Home Loan Bank advances | 2,679 | 3,998 | 5,416 | 8,083 | ||||||||||||
Junior subordinated debentures | 612 | 391 | 1,002 | 783 | ||||||||||||
Other interest expense | 3 | 5 | 8 | 239 | ||||||||||||
Total interest expense | 6,390 | 7,779 | 12,716 | 15,924 | ||||||||||||
Net interest income | 22,409 | 22,411 | 44,876 | 44,796 | ||||||||||||
Provision for loan losses | 700 | 600 | 1,300 | 1,500 | ||||||||||||
Net interest income after provision for loan losses | 21,709 | 21,811 | 43,576 | 43,296 | ||||||||||||
Noninterest income: | ||||||||||||||||
Wealth management services: | ||||||||||||||||
Trust and investment advisory fees | 6,230 | 5,819 | 12,296 | 11,597 | ||||||||||||
Mutual fund fees | 1,077 | 1,002 | 2,099 | 2,027 | ||||||||||||
Financial planning, commissions and other service fees | 605 | 652 | 991 | 1,034 | ||||||||||||
Wealth management services | 7,912 | 7,473 | 15,386 | 14,658 | ||||||||||||
Service charges on deposit accounts | 790 | 764 | 1,581 | 1,523 | ||||||||||||
Merchant processing fees | 2,613 | 2,732 | 4,590 | 4,720 | ||||||||||||
Card interchange fees | 683 | 626 | 1,282 | 1,169 | ||||||||||||
Income from bank-owned life insurance | 461 | 477 | 928 | 963 | ||||||||||||
Net gains on loan sales and commissions on loans originated for others | 3,485 | 3,015 | 7,651 | 6,112 | ||||||||||||
Net realized gains on securities | — | 299 | — | 299 | ||||||||||||
Net gains (losses) on interest rate swap contracts | 152 | (4 | ) | 171 | 24 | |||||||||||
Equity in earnings (losses) of unconsolidated subsidiaries | (57 | ) | 124 | (18 | ) | 87 | ||||||||||
Other income | 355 | 668 | 761 | 1,060 | ||||||||||||
Noninterest income, excluding other-than-temporary impairment losses | 16,394 | 16,174 | 32,332 | 30,615 | ||||||||||||
Total other-than-temporary impairment losses on securities | — | — | (613 | ) | (85 | ) | ||||||||||
Portion of loss recognized in other comprehensive income (before tax) | — | — | (2,159 | ) | (124 | ) | ||||||||||
Net impairment losses recognized in earnings | — | — | (2,772 | ) | (209 | ) | ||||||||||
Total noninterest income | 16,394 | 16,174 | 29,560 | 30,406 | ||||||||||||
Noninterest expense: | ||||||||||||||||
Salaries and employee benefits | 15,542 | 14,451 | 30,984 | 28,911 | ||||||||||||
Net occupancy | 1,364 | 1,527 | 2,878 | 3,053 | ||||||||||||
Equipment | 1,192 | 1,143 | 2,436 | 2,250 | ||||||||||||
Merchant processing costs | 2,211 | 2,320 | 3,884 | 3,983 | ||||||||||||
Outsourced services | 871 | 895 | 1,712 | 1,815 | ||||||||||||
FDIC deposit insurance costs | 451 | 426 | 882 | 884 | ||||||||||||
Legal, audit and professional fees | 554 | 519 | 1,162 | 1,001 | ||||||||||||
Advertising and promotion | 476 | 478 | 831 | 850 | ||||||||||||
Amortization of intangibles | 173 | 186 | 346 | 373 | ||||||||||||
Foreclosed property costs | 137 | 170 | 184 | 468 | ||||||||||||
Debt prepayment penalties | — | 961 | — | 961 | ||||||||||||
Other expenses | 2,034 | 2,152 | 3,890 | 4,078 | ||||||||||||
Total noninterest expense | 25,005 | 25,228 | 49,189 | 48,627 | ||||||||||||
Income before income taxes | 13,098 | 12,757 | 23,947 | 25,075 | ||||||||||||
Income tax expense | 4,115 | 4,044 | 7,543 | 7,924 | ||||||||||||
Net income | $8,983 | $8,713 | $16,404 | $17,151 | ||||||||||||
Weighted average common shares outstanding - basic | 16,454 | 16,358 | 16,428 | 16,344 | ||||||||||||
Weighted average common shares outstanding - diluted | 16,581 | 16,392 | 16,558 | 16,381 | ||||||||||||
Per share information: | Basic earnings per common share | $0.54 | $0.53 | $0.99 | $1.04 | |||||||||||
Diluted earnings per common share | $0.54 | $0.53 | $0.99 | $1.04 | ||||||||||||
Cash dividends declared per share | $0.25 | $0.23 | $0.50 | $0.46 | ||||||||||||
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, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | ||||||||||
Financial Data: | |||||||||||||||
Total assets | $3,061,307 | $3,051,848 | $3,071,884 | $3,048,868 | $3,041,050 | ||||||||||
Total loans | 2,384,980 | 2,325,045 | 2,294,003 | 2,256,697 | 2,213,842 | ||||||||||
Total securities | 350,517 | 387,102 | 415,879 | 483,858 | 516,193 | ||||||||||
Total deposits | 2,304,609 | 2,319,641 | 2,312,631 | 2,234,659 | 2,130,453 | ||||||||||
Total shareholders' equity | 303,370 | 301,291 | 295,652 | 298,394 | 292,734 | ||||||||||
Net interest income | 22,409 | 22,467 | 23,164 | 22,736 | 22,411 | ||||||||||
Provision for loan losses | 700 | 600 | 600 | 600 | 600 | ||||||||||
Noninterest income, excluding OTTI losses | 16,394 | 15,938 | 17,899 | 16,921 | 16,174 | ||||||||||
Net OTTI losses recognized in earnings | — | (2,772 | ) | (12 | ) | — | — | ||||||||
Noninterest expenses | 25,005 | 24,184 | 27,421 | 26,290 | 25,228 | ||||||||||
Income tax expense | 4,115 | 3,428 | 4,007 | 3,867 | 4,044 | ||||||||||
Net income | 8,983 | 7,421 | 9,023 | 8,900 | 8,713 | ||||||||||
Share Data: | |||||||||||||||
Basic earnings per common share | $0.54 | $0.45 | $0.55 | $0.54 | $0.53 | ||||||||||
Diluted earnings per common share | $0.54 | $0.45 | $0.55 | $0.54 | $0.53 | ||||||||||
Dividends declared per share | $0.25 | $0.25 | $0.24 | $0.24 | $0.23 | ||||||||||
Book value per share | $18.40 | $18.34 | $18.05 | $18.23 | $17.89 | ||||||||||
Tangible book value per share - Non-GAAP (1) | $14.52 | $14.44 | $14.13 | $14.29 | $13.94 | ||||||||||
Market value per share | $28.52 | $27.38 | $26.31 | $26.27 | $24.38 | ||||||||||
Shares outstanding at end of period | 16,487 | 16,425 | 16,380 | 16,371 | 16,359 | ||||||||||
Weighted average common shares outstanding - basic | 16,454 | 16,401 | 16,376 | 16,366 | 16,358 | ||||||||||
Weighted average common shares outstanding - diluted | 16,581 | 16,449 | 16,425 | 16,414 | 16,392 | ||||||||||
Key Ratios: | |||||||||||||||
Return on average assets | 1.18 | % | 0.98 | % | 1.19 | % | 1.17 | % | 1.16 | % | |||||
Return on average tangible assets - Non-GAAP (1) | 1.21 | % | 1.01 | % | 1.21 | % | 1.19 | % | 1.18 | % | |||||
Return on average equity | 11.84 | % | 9.91 | % | 12.01 | % | 12.02 | % | 11.98 | % | |||||
Return on average tangible equity - Non-GAAP (1) | 15.01 | % | 12.62 | % | 15.29 | % | 15.37 | % | 15.41 | % | |||||
Capital Ratios: | |||||||||||||||
Tier 1 risk-based capital | 11.74% (i) | 12.25 | % | 12.01 | % | 11.93 | % | 11.90 | % | ||||||
Total risk-based capital | 12.93% (i) | 13.50 | % | 13.26 | % | 13.18 | % | 13.15 | % | ||||||
Tier 1 leverage ratio | 9.32% (i) | 9.53 | % | 9.30 | % | 9.11 | % | 9.00 | % | ||||||
Equity to assets | 9.91 | % | 9.87 | % | 9.62 | % | 9.79 | % | 9.63 | % | |||||
Tangible equity to tangible assets - Non-GAAP (1) | 7.99 | % | 7.94 | % | 7.69 | % | 7.84 | % | 7.66 | % | |||||
(i) - estimated | |||||||||||||||
Wealth Management Assets under Administration: | |||||||||||||||
Balance at beginning of period | $4,420,076 | $4,199,640 | $4,242,520 | $4,079,913 | $4,196,447 | ||||||||||
Net investment (depreciation) appreciation & income | (20,956 | ) | 213,979 | (5,887 | ) | 155,427 | (131,896 | ) | |||||||
Net client cash flows | 34,454 | 6,457 | (36,993 | ) | 7,180 | 15,362 | |||||||||
Balance at end of period | $4,433,574 | $4,420,076 | $4,199,640 | $4,242,520 | $4,079,913 | ||||||||||
(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) | |||||||
Six Months Ended | |||||||
(Dollars and shares in thousands, except per share amounts) | Jun 30, 2013 | Jun 30, 2012 | |||||
Financial Data: | |||||||
Net interest income | $44,876 | $44,796 | |||||
Provision for loan losses | 1,300 | 1,500 | |||||
Noninterest income, excluding OTTI losses | 32,332 | 30,615 | |||||
Net OTTI losses recognized in earnings | (2,772 | ) | (209 | ) | |||
Noninterest expenses | 49,189 | 48,627 | |||||
Income tax expense | 7,543 | 7,924 | |||||
Net income | 16,404 | 17,151 | |||||
Share Data: | |||||||
Basic earnings per common share | $0.99 | $1.04 | |||||
Diluted earnings per common share | $0.99 | $1.04 | |||||
Dividends declared per share | $0.50 | $0.46 | |||||
Weighted average common shares outstanding - basic | 16,428 | 16,344 | |||||
Weighted average common shares outstanding - diluted | 16,558 | 16,381 | |||||
Key Ratios: | |||||||
Return on average assets | 1.08 | % | 1.13 | % | |||
Return on average tangible assets - Non-GAAP (1) | 1.11 | % | 1.16 | % | |||
Return on average equity | 10.88 | % | 11.92 | % | |||
Return on average tangible equity - Non-GAAP (1) | 13.82 | % | 15.38 | % | |||
Asset Quality Data: | |||||||
Allowance for Loan Losses: | |||||||
Balance at beginning of period | $30,873 | $29,802 | |||||
Provision charged to earnings | 1,300 | 1,500 | |||||
Charge-offs | (4,549 | ) | (1,377 | ) | |||
Recoveries | 260 | 523 | |||||
Balance at end of period | $27,884 | $30,448 | |||||
Net Loan Charge-Offs (Recoveries): | |||||||
Commercial mortgages | $3,922 | ($381 | ) | ||||
Other commercial | 134 | 873 | |||||
Residential real estate mortgages | 45 | 177 | |||||
Consumer | 188 | 185 | |||||
Total | $4,289 | $854 | |||||
Net charge-offs to average loans (annualized) | 0.37 | % | 0.17 | % | |||
Wealth Management Assets Under Administration: | |||||||
Balance at beginning of period | $4,199,640 | $3,900,061 | |||||
Net investment appreciation & income | 193,023 | 166,259 | |||||
Net client cash flows | 40,911 | 13,593 | |||||
Balance at end of period | $4,433,574 | $4,079,913 | |||||
(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, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | ||||||||||
Average Yield / Rate (taxable equivalent basis): | ||||||||||||||
Assets: | ||||||||||||||
Commercial loans | 4.58 | % | 4.70 | % | 4.90 | % | 4.94 | % | 5.03 | % | ||||
Residential real estate loans, including mortgage loans held for sale | 4.14 | % | 4.26 | % | 4.23 | % | 4.32 | % | 4.40 | % | ||||
Consumer loans | 3.81 | % | 3.84 | % | 3.86 | % | 3.89 | % | 3.85 | % | ||||
Total loans | 4.34 | % | 4.44 | % | 4.53 | % | 4.59 | % | 4.65 | % | ||||
Cash, federal funds sold and other short-term investments | 0.22 | % | 0.21 | % | 0.26 | % | 0.26 | % | 0.23 | % | ||||
FHLBB stock | 0.42 | % | 0.39 | % | 0.48 | % | 0.51 | % | 0.54 | % | ||||
Taxable debt securities | 3.52 | % | 3.56 | % | 3.49 | % | 3.50 | % | 3.63 | % | ||||
Nontaxable debt securities | 5.94 | % | 5.98 | % | 5.89 | % | 5.83 | % | 5.93 | % | ||||
Corporate stocks | — | % | — | % | — | % | — | % | 7.58 | % | ||||
Total securities | 3.97 | % | 3.98 | % | 3.86 | % | 3.83 | % | 3.95 | % | ||||
Total interest-earning assets | 4.17 | % | 4.24 | % | 4.31 | % | 4.34 | % | 4.41 | % | ||||
Liabilities: | ||||||||||||||
Interest-bearing demand deposits | — | % | — | % | — | % | — | % | — | % | ||||
NOW accounts | 0.06 | % | 0.06 | % | 0.07 | % | 0.06 | % | 0.06 | % | ||||
Money market accounts | 0.29 | % | 0.29 | % | 0.28 | % | 0.26 | % | 0.23 | % | ||||
Savings accounts | 0.07 | % | 0.07 | % | 0.09 | % | 0.11 | % | 0.11 | % | ||||
Time deposits | 1.25 | % | 1.28 | % | 1.32 | % | 1.33 | % | 1.35 | % | ||||
FHLBB advances | 3.29 | % | 3.21 | % | 3.27 | % | 3.18 | % | 3.25 | % | ||||
Junior subordinated debentures | 7.82 | % | 4.79 | % | 4.75 | % | 4.74 | % | 4.77 | % | ||||
Other | 5.87 | % | 1.77 | % | 5.51 | % | 6.33 | % | 2.07 | % | ||||
Total interest-bearing liabilities | 1.11 | % | 1.11 | % | 1.19 | % | 1.27 | % | 1.33 | % | ||||
Interest rate spread (taxable equivalent basis) | 3.06 | % | 3.13 | % | 3.12 | % | 3.07 | % | 3.08 | % | ||||
Net interest margin (taxable equivalent basis) | 3.26 | % | 3.32 | % | 3.33 | % | 3.28 | % | 3.30 | % | ||||
At June 30, 2013 | ||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||
(Dollars in thousands) | Cost (1) | Gains | Losses | Value | ||||||||||||
Securities Available for Sale: | ||||||||||||||||
Obligations of U.S. government-sponsored enterprises | $29,472 | $1,466 | $— | $30,938 | ||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | 172,014 | 9,239 | (28 | ) | 181,225 | |||||||||||
States and political subdivisions | 64,838 | 2,850 | — | 67,688 | ||||||||||||
Trust preferred securities: | ||||||||||||||||
Individual name issuers | 30,696 | — | (5,619 | ) | 25,077 | |||||||||||
Collateralized debt obligations | 1,264 | — | (867 | ) | 397 | |||||||||||
Corporate bonds | 11,137 | 269 | (17 | ) | 11,389 | |||||||||||
Total securities available for sale | 309,421 | 13,824 | (6,531 | ) | 316,714 | |||||||||||
Held to Maturity: | ||||||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | 33,803 | — | (41 | ) | 33,762 | |||||||||||
Total securities held to maturity | 33,803 | — | (41 | ) | 33,762 | |||||||||||
Total securities | $343,224 | $13,824 | ($6,572 | ) | $350,476 | |||||||||||
(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, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | |||||||||||
Loans: | ||||||||||||||||
Commercial: | Mortgages | $758,437 | $729,968 | $710,813 | $693,221 | $664,410 | ||||||||||
Construction & development | 39,449 | 34,179 | 27,842 | 25,132 | 17,365 | |||||||||||
Other | 512,228 | 513,000 | 513,764 | 500,974 | 510,220 | |||||||||||
Total commercial | 1,310,114 | 1,277,147 | 1,252,419 | 1,219,327 | 1,191,995 | |||||||||||
Residential real estate: | Mortgages | 728,158 | 702,418 | 692,798 | 692,659 | 680,772 | ||||||||||
Homeowner construction | 20,713 | 21,943 | 24,883 | 22,753 | 21,247 | |||||||||||
Total residential real estate | 748,871 | 724,361 | 717,681 | 715,412 | 702,019 | |||||||||||
Consumer: | Home equity lines | 228,367 | 226,640 | 226,861 | 227,549 | 224,550 | ||||||||||
Home equity loans | 41,312 | 40,134 | 39,329 | 39,452 | 40,690 | |||||||||||
Other | 56,316 | 56,763 | 57,713 | 54,957 | 54,588 | |||||||||||
Total consumer | 325,995 | 323,537 | 323,903 | 321,958 | 319,828 | |||||||||||
Total loans | $2,384,980 | $2,325,045 | $2,294,003 | $2,256,697 | $2,213,842 | |||||||||||
At June 30, 2013 | |||||
(Dollars in thousands) | Balance | % of Total | |||
Commercial Real Estate Loans by Property Location: | |||||
Rhode Island, Connecticut, Massachusetts | $762,978 | 95.6 | % | ||
New York | 26,080 | 3.3 | % | ||
New Hampshire | 8,828 | 1.1 | % | ||
Total commercial real estate loans (1) | $797,886 | 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, 2013 | |||||
(Dollars in thousands) | Balance | % of Total | |||
Residential Mortgages by Property Location: | |||||
Rhode Island, Connecticut, Massachusetts | $728,067 | 97.1 | % | ||
New York, Virginia, New Jersey, Maryland, Pennsylvania, District of Columbia | 9,444 | 1.3 | % | ||
New Hampshire | 5,224 | 0.7 | % | ||
Ohio | 2,748 | 0.4 | % | ||
Washington, Oregon | 1,365 | 0.2 | % | ||
Georgia | 1,092 | 0.1 | % | ||
New Mexico | 472 | 0.1 | % | ||
Other | 459 | 0.1 | % | ||
Total residential mortgages | $748,871 | 100.0 | % | ||
Period End Balances At | ||||||||||||||||
(Dollars in thousands) | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | |||||||||||
Deposits: | ||||||||||||||||
Demand deposits | $358,797 | $375,156 | $379,889 | $352,330 | $321,488 | |||||||||||
NOW accounts | 301,096 | 294,136 | 291,174 | 267,495 | 263,124 | |||||||||||
Money market accounts | 540,012 | 503,414 | 496,402 | 459,671 | 388,686 | |||||||||||
Savings accounts | 293,405 | 284,983 | 274,934 | 268,191 | 264,772 | |||||||||||
Time deposits | 811,299 | 861,952 | 870,232 | 886,972 | 892,383 | |||||||||||
Total deposits | $2,304,609 | $2,319,641 | $2,312,631 | $2,234,659 | $2,130,453 | |||||||||||
Out-of-market brokered certificates of deposits included in time deposits | $96,177 | $103,045 | $102,636 | $98,603 | $102,661 | |||||||||||
In-market deposits, excluding out-of-market brokered certificates of deposit | $2,208,432 | $2,216,596 | $2,209,995 | $2,136,056 | $2,027,792 | |||||||||||
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||||
SELECTED FINANCIAL HIGHLIGHTS (unaudited) | |||||||||||||||||||
Period End Balances At | |||||||||||||||||||
(Dollars in thousands) | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | ||||||||||||||
Asset Quality Data: | |||||||||||||||||||
Nonperforming Assets: | |||||||||||||||||||
Commercial mortgages | $9,976 | $14,953 | $10,681 | $5,956 | $2,597 | ||||||||||||||
Commercial construction and development | — | — | — | — | — | ||||||||||||||
Other commercial | 1,400 | 3,122 | 4,412 | 3,201 | 3,405 | ||||||||||||||
Residential real estate mortgages | 7,526 | 6,699 | 6,158 | 7,127 | 8,659 | ||||||||||||||
Consumer | 1,124 | 901 | 1,292 | 1,463 | 1,081 | ||||||||||||||
Total nonaccrual loans | $20,026 | $25,675 | $22,543 | $17,747 | $15,742 | ||||||||||||||
Nonaccrual investment securities | 397 | 404 | 843 | 929 | 767 | ||||||||||||||
Property acquired through foreclosure or repossession | 1,230 | 2,625 | 2,047 | 2,447 | 2,332 | ||||||||||||||
Total nonperforming assets | $21,653 | $28,704 | $25,433 | $21,123 | $18,841 | ||||||||||||||
Total past due loans to total loans | 1.09 | % | 1.13 | % | 1.22 | % | 1.05 | % | 0.92 | % | |||||||||
Nonperforming assets to total assets | 0.71 | % | 0.94 | % | 0.83 | % | 0.69 | % | 0.62 | % | |||||||||
Nonaccrual loans to total loans | 0.84 | % | 1.10 | % | 0.98 | % | 0.79 | % | 0.71 | % | |||||||||
Allowance for loan losses to nonaccrual loans | 139.24 | % | 121.28 | % | 136.95 | % | 173.28 | % | 193.42 | % | |||||||||
Allowance for loan losses to total loans | 1.17 | % | 1.34 | % | 1.35 | % | 1.36 | % | 1.38 | % | |||||||||
Troubled Debt Restructured Loans: | |||||||||||||||||||
Accruing troubled debt restructured loans: | |||||||||||||||||||
Commercial mortgages | $19,018 | $9,600 | $9,569 | $9,131 | $1,251 | ||||||||||||||
Other commercial | 2,602 | 6,554 | 6,577 | 6,880 | 6,916 | ||||||||||||||
Residential real estate mortgages | 876 | 1,599 | 1,123 | 386 | 570 | ||||||||||||||
Consumer | 242 | 244 | 154 | 158 | 159 | ||||||||||||||
Accruing troubled debt restructured loans | 22,738 | 17,997 | 17,423 | 16,555 | 8,896 | ||||||||||||||
Nonaccrual troubled debt restructured loans: | |||||||||||||||||||
Commercial mortgages | — | — | — | — | — | ||||||||||||||
Other commercial | 590 | 721 | 2,063 | 2,306 | 2,317 | ||||||||||||||
Residential real estate mortgages | 144 | 155 | 688 | 1,697 | 2,028 | ||||||||||||||
Consumer | 42 | 42 | 44 | 46 | 47 | ||||||||||||||
Nonaccrual troubled debt restructured loans | 776 | 918 | 2,795 | 4,049 | 4,392 | ||||||||||||||
Total troubled debt restructured loans | $23,514 | $18,915 | $20,218 | $20,604 | $13,288 | ||||||||||||||
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||||
SELECTED FINANCIAL HIGHLIGHTS (unaudited) | |||||||||||||||||||
Period End Balances At | |||||||||||||||||||
(Dollars in thousands) | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | ||||||||||||||
Past Due Loans: | |||||||||||||||||||
Loans 30-59 Days Past Due: | |||||||||||||||||||
Commercial mortgages | $— | $— | $373 | $3,978 | $411 | ||||||||||||||
Other commercial loans | 505 | 689 | 260 | 2,719 | 849 | ||||||||||||||
Residential real estate mortgages | 4,051 | 3,891 | 4,840 | 2,368 | 4,969 | ||||||||||||||
Consumer loans | 1,588 | 1,534 | 1,134 | 1,876 | 2,660 | ||||||||||||||
Loans 30-59 days past due | $6,144 | $6,114 | $6,607 | $10,941 | $8,889 | ||||||||||||||
Loans 60-89 Days Past Due: | |||||||||||||||||||
Commercial mortgages | $536 | $193 | $408 | $874 | $233 | ||||||||||||||
Other commercial loans | 34 | 341 | 296 | 1,169 | 434 | ||||||||||||||
Residential real estate mortgages | 1,697 | 1,451 | 1,951 | 821 | 1,600 | ||||||||||||||
Consumer loans | 689 | 461 | 385 | 1,213 | 677 | ||||||||||||||
Loans 60-89 days past due | $2,956 | $2,446 | $3,040 | $4,077 | $2,944 | ||||||||||||||
Loans 90 Days or more Past Due: | |||||||||||||||||||
Commercial mortgages | $8,895 | $9,852 | $10,300 | $2,495 | $2,339 | ||||||||||||||
Other commercial loans | 3,428 | 2,961 | 3,647 | 1,366 | 1,714 | ||||||||||||||
Residential real estate mortgages | 4,266 | 4,327 | 3,658 | 3,924 | 4,039 | ||||||||||||||
Consumer loans | 415 | 484 | 844 | 811 | 362 | ||||||||||||||
Loans 90 days or more past due | $17,004 | $17,624 | $18,449 | $8,596 | $8,454 | ||||||||||||||
Total Past Due Loans: | |||||||||||||||||||
Commercial mortgages | $9,431 | $10,045 | $11,081 | $7,347 | $2,983 | ||||||||||||||
Other commercial loans | 3,967 | 3,991 | 4,203 | 5,254 | 2,997 | ||||||||||||||
Residential real estate mortgages | 10,014 | 9,669 | 10,449 | 7,113 | 10,608 | ||||||||||||||
Consumer loans | 2,692 | 2,479 | 2,363 | 3,900 | 3,699 | ||||||||||||||
Total past due loans | $26,104 | $26,184 | $28,096 | $23,614 | $20,287 | ||||||||||||||
Accruing loans 90 days or more past due | $2.431 | $— | $— | $— | $— | ||||||||||||||
Nonaccrual loans included in past due loans | $17,208 | $19,000 | $20,979 | $14,471 | $12,719 | ||||||||||||||
For the Quarters Ended | |||||||||||||||||||
(Dollars in thousands) | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | ||||||||||||||
Allowance for Loan Losses: | |||||||||||||||||||
Balance at beginning of period | $31,139 | $30,873 | $30,752 | $30,448 | $30,045 | ||||||||||||||
Provision charged to earnings | 700 | 600 | 600 | 600 | 600 | ||||||||||||||
Charge-offs | (4,175 | ) | (374 | ) | (534 | ) | (424 | ) | (696 | ) | |||||||||
Recoveries | 220 | 40 | 55 | 128 | 499 | ||||||||||||||
Balance at end of period | $27,884 | $31,139 | $30,873 | $30,752 | $30,448 | ||||||||||||||
Net Loan Charge-Offs (Recoveries): | |||||||||||||||||||
Commercial mortgages | $3,814 | $108 | $212 | $212 | ($388 | ) | |||||||||||||
Other commercial | 63 | 71 | 225 | (22 | ) | 549 | |||||||||||||
Residential real estate mortgages | 36 | 9 | 39 | 41 | (47 | ) | |||||||||||||
Consumer | 42 | 146 | 3 | 65 | 83 | ||||||||||||||
Total | $3,955 | $334 | $479 | $296 | $197 | ||||||||||||||
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, 2013 | March 31, 2013 | June 30, 2012 | |||||||||||||||||||||||||
Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||
Commercial loans | $1,291,244 | $14,747 | 4.58 | % | $1,243,716 | $14,421 | 4.70 | % | $1,166,545 | $14,590 | 5.03 | % | |||||||||||||||
Residential real estate loans, including mortgage loans held for sale | 762,363 | 7,877 | 4.14 | % | 755,528 | 7,937 | 4.26 | % | 714,154 | 7,809 | 4.40 | % | |||||||||||||||
Consumer loans | 325,539 | 3,090 | 3.81 | % | 322,668 | 3,053 | 3.84 | % | 320,442 | 3,067 | 3.85 | % | |||||||||||||||
Total loans | 2,379,146 | 25,714 | 4.34 | % | 2,321,912 | 25,411 | 4.44 | % | 2,201,141 | 25,466 | 4.65 | % | |||||||||||||||
Cash, federal funds sold and short-term investments | 44,690 | 24 | 0.22 | % | 53,734 | 28 | 0.21 | % | 30,078 | 17 | 0.23 | % | |||||||||||||||
FHLBB stock | 37,730 | 39 | 0.42 | % | 39,790 | 38 | 0.39 | % | 40,418 | 54 | 0.54 | % | |||||||||||||||
Taxable debt securities | 293,586 | 2,576 | 3.52 | % | 323,730 | 2,845 | 3.56 | % | 451,207 | 4,069 | 3.63 | % | |||||||||||||||
Nontaxable debt securities | 66,468 | 985 | 5.94 | % | 68,064 | 1,004 | 5.98 | % | 70,462 | 1,039 | 5.93 | % | |||||||||||||||
Corporate stocks | — | — | — | % | — | — | — | % | 1,804 | 34 | 7.58 | % | |||||||||||||||
Total securities | 360,054 | 3,561 | 3.97 | % | 391,794 | 3,849 | 3.98 | % | 523,473 | 5,142 | 3.95 | % | |||||||||||||||
Total interest-earning assets | 2,821,620 | 29,338 | 4.17 | % | 2,807,230 | 29,326 | 4.24 | % | 2,795,110 | 30,679 | 4.41 | % | |||||||||||||||
Noninterest-earning assets | 213,336 | 210,338 | 222,057 | ||||||||||||||||||||||||
Total assets | $3,034,956 | $3,017,568 | $3,017,167 | ||||||||||||||||||||||||
Liabilities and Shareholders' Equity: | |||||||||||||||||||||||||||
Interest-bearing demand deposits | $135 | $— | — | % | $— | $— | — | % | $— | $— | — | % | |||||||||||||||
NOW accounts | 289,858 | 45 | 0.06 | % | 283,004 | 45 | 0.06 | % | 254,528 | 39 | 0.06 | % | |||||||||||||||
Money market accounts | 535,107 | 381 | 0.29 | % | 495,453 | 351 | 0.29 | % | 405,241 | 232 | 0.23 | % | |||||||||||||||
Savings accounts | 286,547 | 47 | 0.07 | % | 279,536 | 46 | 0.07 | % | 258,824 | 72 | 0.11 | % | |||||||||||||||
Time deposits | 843,462 | 2,623 | 1.25 | % | 869,576 | 2,752 | 1.28 | % | 905,466 | 3,042 | 1.35 | % | |||||||||||||||
FHLBB advances | 326,839 | 2,679 | 3.29 | % | 345,270 | 2,737 | 3.21 | % | 494,257 | 3,998 | 3.25 | % | |||||||||||||||
Junior subordinated debentures | 31,405 | 612 | 7.82 | % | 32,991 | 390 | 4.79 | % | 32,991 | 391 | 4.77 | % | |||||||||||||||
Other | 205 | 3 | 5.87 | % | 1,146 | 5 | 1.77 | % | 973 | 5 | 2.07 | % | |||||||||||||||
Total interest-bearing liabilities | 2,313,558 | 6,390 | 1.11 | % | 2,306,976 | 6,326 | 1.11 | % | 2,352,280 | 7,779 | 1.33 | % | |||||||||||||||
Demand deposits | 365,747 | 360,851 | 321,094 | ||||||||||||||||||||||||
Other liabilities | 52,249 | 50,305 | 52,939 | ||||||||||||||||||||||||
Shareholders' equity | 303,402 | 299,436 | 290,854 | ||||||||||||||||||||||||
Total liabilities and shareholders' equity | $3,034,956 | $3,017,568 | $3,017,167 | ||||||||||||||||||||||||
Net interest income (FTE) | $22,948 | $23,000 | $22,900 | ||||||||||||||||||||||||
Interest rate spread | 3.06 | % | 3.13 | % | 3.08 | % | |||||||||||||||||||||
Net interest margin | 3.26 | % | 3.32 | % | 3.30 | % | |||||||||||||||||||||
Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:
(Dollars in thousands) | Three Months Ended | ||||||||||
Jun 30, 2013 | Mar 31, 2013 | Jun 30, 2012 | |||||||||
Commercial loans | $201 | $188 | $122 | ||||||||
Nontaxable debt securities | 338 | 345 | 357 | ||||||||
Corporate stocks | — | — | 10 | ||||||||
Total | $539 | $533 | $489 | ||||||||
Washington Trust Bancorp, Inc. and Subsidiaries | ||||||||||||||||||
CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited) | ||||||||||||||||||
Six Months Ended June 30, | 2013 | 2012 | ||||||||||||||||
Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | |||||||||||||
(Dollars in thousands) | ||||||||||||||||||
Assets: | ||||||||||||||||||
Commercial loans | $1,267,612 | $29,168 | 4.64 | % | $1,144,114 | $28,888 | 5.08 | % | ||||||||||
Residential real estate loans, including mortgage loans held for sale | 758,964 | 15,814 | 4.20 | % | 717,430 | 15,884 | 4.45 | % | ||||||||||
Consumer loans | 324,111 | 6,143 | 3.82 | % | 320,195 | 6,164 | 3.87 | % | ||||||||||
Total loans | 2,350,687 | 51,125 | 4.39 | % | 2,181,739 | 50,936 | 4.69 | % | ||||||||||
Cash, federal funds sold and short-term investments | 49,186 | 52 | 0.21 | % | 41,196 | 37 | 0.18 | % | ||||||||||
FHLBB stock | 38,755 | 77 | 0.40 | % | 41,012 | 106 | 0.52 | % | ||||||||||
Taxable debt securities | 308,576 | 5,421 | 3.54 | % | 468,828 | 8,446 | 3.62 | % | ||||||||||
Nontaxable debt securities | 67,261 | 1,989 | 5.96 | % | 71,185 | 2,098 | 5.93 | % | ||||||||||
Corporate stocks | — | — | — | % | 1,828 | 67 | 7.37 | % | ||||||||||
Total securities | 375,837 | 7,410 | 3.98 | % | 541,841 | 10,611 | 3.94 | % | ||||||||||
Total interest-earning assets | 2,814,465 | 58,664 | 4.20 | % | 2,805,788 | 61,690 | 4.42 | % | ||||||||||
Noninterest-earning assets | 211,845 | 221,430 | ||||||||||||||||
Total assets | $3,026,310 | $3,027,218 | ||||||||||||||||
Liabilities and Shareholders' Equity: | ||||||||||||||||||
Interest-bearing demand deposits | $68 | $— | — | % | $— | $— | — | % | ||||||||||
NOW accounts | 286,450 | 90 | 0.06 | % | 250,390 | 85 | 0.07 | % | ||||||||||
Money market accounts | 515,390 | 732 | 0.29 | % | 408,647 | 457 | 0.22 | % | ||||||||||
Savings accounts | 283,059 | 93 | 0.07 | % | 253,837 | 142 | 0.11 | % | ||||||||||
Time deposits | 856,447 | 5,375 | 1.27 | % | 895,405 | 6,135 | 1.38 | % | ||||||||||
FHLBB advances | 336,004 | 5,416 | 3.25 | % | 509,012 | 8,083 | 3.19 | % | ||||||||||
Junior subordinated debentures | 32,194 | 1,002 | 6.28 | % | 32,991 | 783 | 4.77 | % | ||||||||||
Other | 673 | 8 | 2.40 | % | 9,938 | 239 | 4.84 | % | ||||||||||
Total interest-bearing liabilities | 2,310,285 | 12,716 | 1.11 | % | 2,360,220 | 15,924 | 1.36 | % | ||||||||||
Demand deposits | 363,313 | 326,159 | ||||||||||||||||
Other liabilities | 51,282 | 53,012 | ||||||||||||||||
Shareholders' equity | 301,430 | 287,827 | ||||||||||||||||
Total liabilities and shareholders' equity | $3,026,310 | $3,027,218 | ||||||||||||||||
Net interest income (FTE) | $45,948 | $45,766 | ||||||||||||||||
Interest rate spread | 3.09 | % | 3.06 | % | ||||||||||||||
Net interest margin | 3.29 | % | 3.28 | % | ||||||||||||||
Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:
(Dollars in thousands) | |||||||
Six Months Ended June 30, | 2013 | 2012 | |||||
Commercial loans | $389 | $229 | |||||
Nontaxable debt securities | 683 | 723 | |||||
Corporate stocks | — | 18 | |||||
Total | $1,072 | $970 | |||||
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, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | ||||||||||
Calculation of Tangible Book Value per Share: | |||||||||||||||
Total shareholders' equity at end of period | $303,370 | $301,291 | $295,652 | $298,394 | $292,734 | ||||||||||
Less: | |||||||||||||||
Goodwill | 58,114 | 58,114 | 58,114 | 58,114 | 58,114 | ||||||||||
Identifiable intangible assets, net | 5,827 | 6,000 | 6,173 | 6,346 | 6,528 | ||||||||||
Total tangible shareholders' equity at end of period | $239,429 | $237,177 | $231,365 | $233,934 | $228,092 | ||||||||||
Shares outstanding at end of period | 16,487 | 16,425 | 16,380 | 16,371 | 16,359 | ||||||||||
Book value per share - GAAP | $18.40 | $18.34 | $18.05 | $18.23 | $17.89 | ||||||||||
Tangible book value per share - Non-GAAP | $14.52 | $14.44 | $14.12 | $14.29 | $13.94 | ||||||||||
Calculation of Tangible Equity to Tangible Assets: | |||||||||||||||
Total tangible shareholders' equity at end of period | $239,429 | $237,177 | $231,365 | $233,934 | $228,092 | ||||||||||
Total assets at end of period | $3,061,307 | $3,051,848 | $3,071,884 | $3,048,868 | $3,041,050 | ||||||||||
Less: | |||||||||||||||
Goodwill | 58,114 | 58,114 | 58,114 | 58,114 | 58,114 | ||||||||||
Identifiable intangible assets, net | 5,827 | 6,000 | 6,173 | 6,346 | 6,528 | ||||||||||
Total tangible assets at end of period | $2,997,366 | $2,987,734 | $3,007,597 | $2,984,408 | $2,976,408 | ||||||||||
Equity to assets - GAAP | 9.91 | % | 9.87 | % | 9.62 | % | 9.79 | % | 9.63 | % | |||||
Tangible equity to tangible assets - Non-GAAP | 7.99 | % | 7.94 | % | 7.69 | % | 7.84 | % | 7.66 | % | |||||
Calculation of Return on Average Tangible Assets: | |||||||||||||||
Net income | $8,983 | $7,421 | $9,023 | $8,900 | $8,713 | ||||||||||
Total average assets | $3,034,956 | $3,017,583 | $3,044,764 | $3,045,203 | $3,017,167 | ||||||||||
Less: | |||||||||||||||
Average goodwill | 58,114 | 58,114 | 58,114 | 58,114 | 58,114 | ||||||||||
Average identifiable intangible assets, net | 5,912 | 6,085 | 6,257 | 6,434 | 6,619 | ||||||||||
Total average tangible assets | $2,970,930 | $2,953,384 | $2,980,393 | $2,980,655 | $2,952,434 | ||||||||||
Return on average assets - GAAP | 1.18 | % | 0.98 | % | 1.19 | % | 1.17 | % | 1.16 | % | |||||
Return on average tangible assets - Non-GAAP | 1.21 | % | 1.01 | % | 1.21 | % | 1.19 | % | 1.18 | % | |||||
Calculation of Return on Average Tangible Equity: | |||||||||||||||
Net income | $8,983 | $7,421 | $9,023 | $8,900 | $8,713 | ||||||||||
Total average shareholders' equity | $303,402 | $299,436 | $300,430 | $296,150 | $290,854 | ||||||||||
Less: | |||||||||||||||
Average goodwill | 58,114 | 58,114 | 58,114 | 58,114 | 58,114 | ||||||||||
Average identifiable intangible assets, net | 5,912 | 6,085 | 6,257 | 6,434 | 6,619 | ||||||||||
Total average tangible shareholders' equity | $239,376 | $235,237 | $236,059 | $231,602 | $226,121 | ||||||||||
Return on average shareholders' equity - GAAP | 11.84 | % | 9.91 | % | 12.01 | % | 12.02 | % | 11.98 | % | |||||
Return on average tangible shareholders' equity - Non-GAAP | 15.01 | % | 12.62 | % | 15.29 | % | 15.37 | % | 15.41 | % | |||||
Washington Trust Bancorp, Inc. and Subsidiaries | ||||||
SUPPLEMENTAL INFORMATION - Non-GAAP Financial Measures (unaudited) | ||||||
Six Months Ended | ||||||
(Dollars in thousands) | Jun 30, 2013 | Jun 30, 2012 | ||||
Calculation of return on average tangible assets: | ||||||
Net income | $16,404 | $17,151 | ||||
Total average assets | $3,026,310 | $3,027,218 | ||||
Less: | ||||||
Average goodwill | 58,114 | 58,114 | ||||
Average identifiable intangible assets, net | 5,998 | 6,712 | ||||
Total average tangible assets | $2,962,198 | $2,962,392 | ||||
Return on average assets - GAAP | 1.08 | % | 1.13 | % | ||
Return on average tangible assets - Non-GAAP | 1.11 | % | 1.16 | % | ||
Calculation of return on average tangible equity: | ||||||
Net income | $16,404 | $17,151 | ||||
Total average shareholders' equity | $301,430 | $287,827 | ||||
Less: | ||||||
Average goodwill | 58,114 | 58,114 | ||||
Average identifiable intangible assets, net | 5,998 | 6,712 | ||||
Total average tangible shareholders' equity | $237,318 | $223,001 | ||||
Return on average shareholders' equity - GAAP | 10.88 | % | 11.92 | % | ||
Return on average tangible shareholders' equity - Non-GAAP | 13.82 | % | 15.38 | % | ||