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| 8-K - 8-K - WASHINGTON TRUST BANCORP INC | form8-k2013q4.htm |
Exhibit 99.1
NASDAQ: WASH
Contact: Elizabeth B. Eckel
Senior Vice President, Marketing
Telephone: (401) 348-1309
E-mail: ebeckel@washtrust.com
Date: January 28, 2014
FOR IMMEDIATE RELEASE
Washington Trust Reports Strong Fourth Quarter and Record 2013 Earnings
Solid Growth in Loans, Deposits and Wealth Management Business
Westerly, Rhode Island…Washington Trust Bancorp, Inc. (NASDAQ Global Select; symbol: WASH), parent company of The Washington Trust Company, today announced net income of $9.8 million, or 58 cents per diluted share, for the fourth quarter of 2013. These results compared to third quarter of 2013 net income of $10.0 million, or 59 cents per diluted share, and fourth quarter of 2012 net income of $9.0 million, or 55 cents per diluted share.
For the year ended December 31, 2013, net income totaled $36.2 million, or $2.16 per diluted share, up from the $35.1 million, or $2.13 per diluted share, reported for 2012. The returns on average equity and average assets for 2013 were 11.65% and 1.17%, respectively, compared to 11.97% and 1.16%, respectively, for 2012.
"Washington Trust's strong fourth quarter performance led to record full-year 2013 earnings," stated Joseph J. MarcAurele, Washington Trust Chairman and CEO. "We continued to build relationships with individuals and businesses throughout the region, which contributed to solid loan and deposit growth."
Selected highlights for the fourth quarter included:
• | Loan growth was strong in the fourth quarter, totaling $109.1 million, or 5%. Total loans amounted to $2.46 billion at December 31, 2013, up by 7% from a year ago. |
• | Deposit growth continued in the fourth quarter with an increase of $50.5 million, or 2%, from the end of the third quarter. Total deposits reached $2.51 billion at December 31, 2013, up by 8% from a year ago. |
• | Wealth management assets under administration grew by $186.4 million, or 4%, to $4.78 billion. Wealth management revenues rose by $1.2 million, or 15%, on a linked quarter basis. |
• | Asset quality indicators continued to improve. Nonperforming assets were down by 4% and delinquencies were down 9% from September 30, 2013. |
• | In December, the quarterly dividend was increased to 27 cents per share, representing the third quarterly dividend increase during 2013. |
Washington Trust
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Net Interest Income
Net interest income totaled $23.5 million for the fourth quarter of 2013, up modestly from $23.4 million for the third quarter of 2013. The net interest margin for the fourth quarter of 2013 was 3.24%, compared to 3.29% for the third quarter of 2013. The yield on interest-earning assets declined by 10 basis points from the previous quarter largely due to lower yields on commercial loans. Meanwhile, the cost of funds improved by 4 basis points.
Noninterest Income
Noninterest income totaled $15.1 million for the fourth quarter of 2013, compared to $17.4 million for the third quarter of 2013. Included in noninterest income in the fourth quarter was an other-than-temporary impairment ("OTTI") charge of $717 thousand on a trust preferred collateralized debt obligation investment holding. The security has been sold in January 2014 with a realized loss equal to the impairment charge.
Excluding the OTTI charge, noninterest income declined by $1.6 million, or 9%, compared to the third quarter of 2013. Other significant linked quarter changes included the following:
• | Wealth management revenues totaled $8.8 million for the fourth quarter, up from the $7.6 million recognized in the previous quarter. This included: |
◦ | An increase of $375 thousand, or 5%, in asset-based revenues, which totaled $7.7 million for the fourth quarter. |
◦ | An increase of $805 thousand in transaction-based revenues, which totaled $1.1 million for the fourth quarter. This increase was largely due to an above-average level of insurance commission income. Transaction-based revenues were approximately $700 thousand higher than the average amount recognized for each of the previous three quarters. |
• | Net gains on loan sales and commissions on loans originated for others declined by $2.3 million compared to the third quarter. Included in the previous quarter were gains of $977 thousand resulting from the sale of residential mortgage portfolio loans. Excluding the third quarter 2013 portfolio loan sale, these revenues declined by $1.4 million, reflecting continued declines in refinancing activity due to higher mortgage interest rates. Residential mortgage loans sold to the secondary market amounted to $65.9 million in the fourth quarter, compared to $114.4 million in the previous quarter. |
• | Net gains on interest rate swap contracts increased by $672 thousand largely due to an above-average level of customer-related interest rate swap transactions in the fourth quarter of 2013. Net gains on interest rate swap contracts for the fourth quarter of 2013 were approximately $650 thousand higher than the average amount of net gains recognized for each of the first three quarters of 2013. |
• | Merchant processing fee revenue was down by $1.1 million, or 32%, reflecting a seasonal decline in the volume of transactions processed for customers. See discussion below regarding the corresponding decrease in merchant processing expenses. |
Noninterest Expenses
Noninterest expenses totaled $24.0 million for the fourth quarter of 2013, compared to $25.5 million for the previous quarter. Debt prepayment penalties of $1.1 million were incurred in the third quarter of 2013; there were none incurred in the fourth quarter. In addition, a charitable contribution expense (classified in other expenses) of $400 thousand was incurred in the fourth quarter of 2013; there was none incurred in the previous quarter.
Washington Trust
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Excluding these items, noninterest expenses for the fourth quarter of 2013 decreased by $755 thousand from the previous quarter. Significant changes, on this basis, included the following:
• | Salaries and employee benefits expenses were down by $212 thousand, or 1%, primarily as a result of a modification to the Corporation's defined benefit pension plans adopted in the third quarter. |
• | Merchant processing expenses were down by $926 thousand, or 32%, on a linked quarter basis. This decline is consistent with the decline in merchant processing fee income described above. |
Income tax expense amounted to $4.4 million for the fourth quarter of 2013, compared to $4.0 million for the previous quarter. The effective tax rate for the fourth quarter was 31.0%, compared to 31.5% for the third quarter. Based on current federal and applicable state income tax statutes, the Corporation currently expects the 2014 effective tax rate to be approximately 31.7%.
Asset Quality
Total nonaccrual loans amounted to $18.3 million, or 0.74% of total loans, at December 31, 2013, compared to $19.5 million, or 0.83%, at September 30, 2013. Total past due loans amounted to $21.9 million, or 0.89% of total loans, at December 31, 2013, compared to $24.0 million, or 1.02%, at September 30, 2013.
The loan loss provision charged to earnings in the fourth quarter of 2013 totaled $400 thousand compared to $700 thousand in the third quarter. Net charge-offs amounted to $522 thousand in the fourth quarter of 2013, compared to $576 thousand in the third quarter of 2013.
The allowance for loan losses was $27.9 million, or 1.13% of total loans, at December 31, 2013, compared to $28.0 million, or 1.19% of total loans, at September 30, 2013. The decline in the ratio of the allowance for loan losses to total loans reflects charge-offs, a decrease in specific reserves on impaired loans and overall improvement in asset and credit quality indicators.
Loans
Total loans of $2.46 billion at December 31, 2013 increased by $109.1 million, or 5%, from the balance at September 30, 2013 and by $168.9 million, or 7%, from a year ago. Significant changes included:
• | Commercial loan portfolio growth of $65.4 million, or 5.0%, in the fourth quarter and $110.9 million, or 9.0%, from a year ago, reflecting growth in both commercial real estate and commercial and industrial loan portfolios. |
• | Residential real estate loan portfolio growth of $41.0 million, or 6%, in the fourth quarter and $55.0 million, or 8%, in the last twelve months. |
Deposits
Total deposits of $2.51 billion at December 31, 2013 grew by $50.5 million, or 2%, from September 30, 2013, and by $192.7 million, or 8%, from a year ago. Significant changes included:
• | Demand deposit and NOW account growth of $29.2 million, or 4%, in the fourth quarter and $79.5 million, or 12%, from a year ago. |
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• | Money market and savings account growth of $47.6 million, or 5%, in the fourth quarter and $192.7 million, or 25%, in the last twelve months. |
• | Time deposit balance decreases of $26.3 million, or 3%, in the fourth quarter and $79.5 million, or 9%, from a year ago. |
Capital Management
Capital levels continued to exceed the regulatory minimum levels to be considered well capitalized, with a total risk-based capital ratio of 13.29% at December 31, 2013, compared to 13.44% at September 30, 2013 and 13.26% at December 31, 2012.
Total shareholder's equity was $329.6 million at December 31, 2013, up by $6.1 million from September 30, 2013.
Dividends Declared
The Board of Directors declared a quarterly dividend of 27 cents per share for the quarter ended December 31, 2013. The dividend was paid on January 14, 2014 to shareholders of record on January 2, 2014.
Conference Call
Washington Trust will host a conference call to discuss fourth quarter results, business highlights and outlook on Wednesday, January 29, 2014 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 entering Conference Number 10038876; the audio replay will be available until 9:00 a.m. on February 13, 2014. 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 March 31, 2014.
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, additional 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,
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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, 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) | Dec 31, 2013 | Dec 31, 2012 | ||||||
Assets: | ||||||||
Cash and due from banks | $81,939 | $73,474 | ||||||
Short-term investments | 3,378 | 19,176 | ||||||
Mortgage loans held for sale, at fair value | 11,636 | 50,056 | ||||||
Securities: | ||||||||
Available for sale, at fair value | 392,903 | 375,498 | ||||||
Held to maturity, at amortized cost (fair value $29,865 in 2013 and $41,420 in 2012) | 29,905 | 40,381 | ||||||
Total securities | 422,808 | 415,879 | ||||||
Federal Home Loan Bank stock, at cost | 37,730 | 40,418 | ||||||
Loans: | ||||||||
Commercial | 1,363,335 | 1,252,419 | ||||||
Residential real estate | 772,674 | 717,681 | ||||||
Consumer | 326,875 | 323,903 | ||||||
Total loans | 2,462,884 | 2,294,003 | ||||||
Less allowance for loan losses | 27,886 | 30,873 | ||||||
Net loans | 2,434,998 | 2,263,130 | ||||||
Premises and equipment, net | 25,402 | 27,232 | ||||||
Investment in bank-owned life insurance | 56,673 | 54,823 | ||||||
Goodwill | 58,114 | 58,114 | ||||||
Identifiable intangible assets, net | 5,493 | 6,173 | ||||||
Other assets | 50,696 | 63,409 | ||||||
Total assets | $3,188,867 | $3,071,884 | ||||||
Liabilities: | ||||||||
Deposits: | ||||||||
Demand deposits | $440,785 | $379,889 | ||||||
NOW accounts | 309,771 | 291,174 | ||||||
Money market accounts | 666,646 | 496,402 | ||||||
Savings accounts | 297,357 | 274,934 | ||||||
Time deposits | 790,762 | 870,232 | ||||||
Total deposits | 2,505,321 | 2,312,631 | ||||||
Federal Home Loan Bank advances | 288,082 | 361,172 | ||||||
Junior subordinated debentures | 22,681 | 32,991 | ||||||
Other borrowings | 178 | 1,212 | ||||||
Other liabilities | 42,959 | 68,226 | ||||||
Total liabilities | 2,859,221 | 2,776,232 | ||||||
Shareholders’ Equity: | ||||||||
Common stock of $.0625 par value; authorized 30,000,000 shares; issued and outstanding 16,613,561 shares in 2013 and 16,379,771 shares in 2012 | 1,038 | 1,024 | ||||||
Paid-in capital | 97,566 | 91,453 | ||||||
Retained earnings | 232,595 | 213,674 | ||||||
Accumulated other comprehensive loss | (1,553 | ) | (10,499 | ) | ||||
Total shareholders’ equity | 329,646 | 295,652 | ||||||
Total liabilities and shareholders’ equity | $3,188,867 | $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 | Twelve Months | ||||||||||||||
Periods ended December 31, | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Interest income: | ||||||||||||||||
Interest and fees on loans | $25,649 | $26,109 | $102,481 | $102,656 | ||||||||||||
Interest on securities: | Taxable | 3,005 | 3,241 | 11,008 | 15,359 | |||||||||||
Nontaxable | 618 | 664 | 2,553 | 2,699 | ||||||||||||
Dividends on corporate stock and Federal Home Loan Bank stock | 35 | 49 | 148 | 256 | ||||||||||||
Other interest income | 59 | 27 | 158 | 91 | ||||||||||||
Total interest and dividend income | 29,366 | 30,090 | 116,348 | 121,061 | ||||||||||||
Interest expense: | ||||||||||||||||
Deposits | 3,066 | 3,380 | 12,420 | 13,590 | ||||||||||||
Federal Home Loan Bank advances | 2,534 | 3,148 | 10,643 | 14,957 | ||||||||||||
Junior subordinated debentures | 241 | 394 | 1,484 | 1,570 | ||||||||||||
Other interest expense | 4 | 4 | 16 | 248 | ||||||||||||
Total interest expense | 5,845 | 6,926 | 24,563 | 30,365 | ||||||||||||
Net interest income | 23,521 | 23,164 | 91,785 | 90,696 | ||||||||||||
Provision for loan losses | 400 | 600 | 2,400 | 2,700 | ||||||||||||
Net interest income after provision for loan losses | 23,121 | 22,564 | 89,385 | 87,996 | ||||||||||||
Noninterest income: | ||||||||||||||||
Wealth management revenues | 8,810 | 7,790 | 31,825 | 29,641 | ||||||||||||
Service charges on deposit accounts | 820 | 837 | 3,256 | 3,193 | ||||||||||||
Merchant processing fees | 2,271 | 2,232 | 10,220 | 10,159 | ||||||||||||
Card interchange fees | 775 | 636 | 2,788 | 2,480 | ||||||||||||
Income from bank-owned life insurance | 458 | 479 | 1,850 | 2,448 | ||||||||||||
Net gains on loan sales and commissions on loans originated for others | 1,551 | 4,476 | 13,085 | 14,092 | ||||||||||||
Net realized gains on securities | — | 924 | — | 1,223 | ||||||||||||
Net gains on interest rate swap contracts | 726 | 168 | 951 | 255 | ||||||||||||
Equity in earnings (losses) of unconsolidated subsidiaries | (42 | ) | 82 | (107 | ) | 196 | ||||||||||
Other income | 468 | 275 | 1,701 | 1,748 | ||||||||||||
Noninterest income, excluding other-than-temporary impairment losses | 15,837 | 17,899 | 65,569 | 65,435 | ||||||||||||
Total other-than-temporary impairment losses on securities | 319 | 57 | (294 | ) | (28 | ) | ||||||||||
Portion of loss recognized in other comprehensive income (before tax) | (1,036 | ) | (69 | ) | (3,195 | ) | (193 | ) | ||||||||
Net impairment losses recognized in earnings | (717 | ) | (12 | ) | (3,489 | ) | (221 | ) | ||||||||
Total noninterest income | 15,120 | 17,887 | 62,080 | 65,214 | ||||||||||||
Noninterest expense: | ||||||||||||||||
Salaries and employee benefits | 14,428 | 15,661 | 60,052 | 59,786 | ||||||||||||
Net occupancy | 1,487 | 1,518 | 5,769 | 6,039 | ||||||||||||
Equipment | 1,189 | 1,222 | 4,847 | 4,640 | ||||||||||||
Merchant processing costs | 1,936 | 1,903 | 8,682 | 8,593 | ||||||||||||
Outsourced services | 1,072 | 900 | 3,662 | 3,560 | ||||||||||||
Legal, audit and professional fees | 639 | 641 | 2,330 | 2,240 | ||||||||||||
FDIC deposit insurance costs | 431 | 419 | 1,761 | 1,730 | ||||||||||||
Advertising and promotion | 321 | 435 | 1,464 | 1,730 | ||||||||||||
Amortization of intangibles | 164 | 173 | 680 | 728 | ||||||||||||
Foreclosed property costs | 36 | 158 | 258 | 762 | ||||||||||||
Debt prepayment penalties | — | 1,774 | 1,125 | 3,908 | ||||||||||||
Other expenses | 2,345 | 2,617 | 8,155 | 8,622 | ||||||||||||
Total noninterest expense | 24,048 | 27,421 | 98,785 | 102,338 | ||||||||||||
Income before income taxes | 14,193 | 13,030 | 52,680 | 50,872 | ||||||||||||
Income tax expense | 4,404 | 4,007 | 16,527 | 15,798 | ||||||||||||
Net income | $9,789 | $9,023 | $36,153 | $35,074 | ||||||||||||
Weighted average common shares outstanding - basic | 16,602 | 16,376 | 16,506 | 16,358 | ||||||||||||
Weighted average common shares outstanding - diluted | 16,770 | 16,425 | 16,664 | 16,401 | ||||||||||||
Per share information: | Basic earnings per common share | $0.59 | $0.55 | $2.18 | $2.13 | |||||||||||
Diluted earnings per common share | $0.58 | $0.55 | $2.16 | $2.13 | ||||||||||||
Cash dividends declared per share | $0.27 | $0.24 | $1.03 | $0.94 | ||||||||||||
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) | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | ||||||||||
Financial Data: | |||||||||||||||
Total assets | $3,188,867 | $3,131,958 | $3,061,307 | $3,051,848 | $3,071,884 | ||||||||||
Total loans | 2,462,884 | 2,353,766 | 2,384,980 | 2,325,045 | 2,294,003 | ||||||||||
Total securities | 422,808 | 419,349 | 350,517 | 387,102 | 415,879 | ||||||||||
Total deposits | 2,505,321 | 2,454,831 | 2,304,609 | 2,319,641 | 2,312,631 | ||||||||||
Total shareholders' equity | 329,646 | 323,585 | 303,370 | 301,291 | 295,652 | ||||||||||
Net interest income | 23,521 | 23,388 | 22,409 | 22,467 | 23,164 | ||||||||||
Provision for loan losses | 400 | 700 | 700 | 600 | 600 | ||||||||||
Noninterest income, excluding OTTI losses | 15,837 | 17,400 | 16,394 | 15,938 | 17,899 | ||||||||||
Net OTTI losses recognized in earnings | (717 | ) | — | — | (2,772 | ) | (12 | ) | |||||||
Noninterest expenses | 24,048 | 25,548 | 25,005 | 24,184 | 27,421 | ||||||||||
Income tax expense | 4,404 | 4,580 | 4,115 | 3,428 | 4,007 | ||||||||||
Net income | 9,789 | 9,960 | 8,983 | 7,421 | 9,023 | ||||||||||
Share Data: | |||||||||||||||
Basic earnings per common share | $0.59 | $0.60 | $0.54 | $0.45 | $0.55 | ||||||||||
Diluted earnings per common share | $0.58 | $0.59 | $0.54 | $0.45 | $0.55 | ||||||||||
Dividends declared per share | $0.27 | $0.26 | $0.25 | $0.25 | $0.24 | ||||||||||
Book value per share | $19.84 | $19.51 | $18.40 | $18.34 | $18.05 | ||||||||||
Tangible book value per share - Non-GAAP (1) | $16.01 | $15.66 | $14.52 | $14.44 | $14.13 | ||||||||||
Market value per share | $37.22 | $31.43 | $28.52 | $27.38 | $26.31 | ||||||||||
Shares outstanding at end of period | 16,614 | 16,589 | 16,487 | 16,425 | 16,380 | ||||||||||
Weighted average common shares outstanding - basic | 16,602 | 16,563 | 16,454 | 16,401 | 16,376 | ||||||||||
Weighted average common shares outstanding - diluted | 16,770 | 16,696 | 16,581 | 16,449 | 16,425 | ||||||||||
Key Ratios: | |||||||||||||||
Return on average assets | 1.24 | % | 1.29 | % | 1.18 | % | 0.98 | % | 1.19 | % | |||||
Return on average tangible assets - Non-GAAP (1) | 1.26 | % | 1.31 | % | 1.21 | % | 1.01 | % | 1.21 | % | |||||
Return on average equity | 11.98 | % | 12.82 | % | 11.84 | % | 9.91 | % | 12.01 | % | |||||
Return on average tangible equity - Non-GAAP (1) | 14.80 | % | 16.13 | % | 15.01 | % | 12.62 | % | 15.29 | % | |||||
Capital Ratios: | |||||||||||||||
Tier 1 risk-based capital | 12.12% (i) | 12.23% | 11.85 | % | 12.25 | % | 12.01 | % | |||||||
Total risk-based capital | 13.29% (i) | 13.44% | 13.06 | % | 13.50 | % | 13.26 | % | |||||||
Tier 1 leverage ratio | 9.41% (i) | 9.41% | 9.32 | % | 9.53 | % | 9.30 | % | |||||||
Equity to assets | 10.34 | % | 10.33 | % | 9.91 | % | 9.87 | % | 9.62 | % | |||||
Tangible equity to tangible assets - Non-GAAP (1) | 8.51 | % | 8.47 | % | 7.99 | % | 7.94 | % | 7.69 | % | |||||
(i) - estimated | |||||||||||||||
Wealth Management Assets under Administration: | |||||||||||||||
Balance at beginning of period | $4,595,594 | $4,433,574 | $4,420,076 | $4,199,640 | $4,242,520 | ||||||||||
Net investment appreciation (depreciation) & income | 248,727 | 190,931 | (20,956 | ) | 213,979 | (5,887 | ) | ||||||||
Net client cash flows | (62,363 | ) | (28,911 | ) | 34,454 | 6,457 | (36,993 | ) | |||||||
Balance at end of period | $4,781,958 | $4,595,594 | $4,433,574 | $4,420,076 | $4,199,640 | ||||||||||
(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) | |||||||
Years Ended | |||||||
(Dollars and shares in thousands, except per share amounts) | Dec 31, 2013 | Dec 31, 2012 | |||||
Financial Data: | |||||||
Net interest income | $91,785 | $90,696 | |||||
Provision for loan losses | 2,400 | 2,700 | |||||
Noninterest income, excluding OTTI losses | 65,569 | 65,435 | |||||
Net OTTI losses recognized in earnings | (3,489 | ) | (221 | ) | |||
Noninterest expenses | 98,785 | 102,338 | |||||
Income tax expense | 16,527 | 15,798 | |||||
Net income | 36,153 | 35,074 | |||||
Share Data: | |||||||
Basic earnings per common share | $2.18 | $2.13 | |||||
Diluted earnings per common share | $2.16 | $2.13 | |||||
Dividends declared per share | $1.03 | $0.94 | |||||
Weighted average common shares outstanding - basic | 16,506 | 16,358 | |||||
Weighted average common shares outstanding - diluted | 16,664 | 16,401 | |||||
Key Ratios: | |||||||
Return on average assets | 1.17 | % | 1.16 | % | |||
Return on average tangible assets - Non-GAAP (1) | 1.20 | % | 1.18 | % | |||
Return on average equity | 11.65 | % | 11.97 | % | |||
Return on average tangible equity - Non-GAAP (1) | 14.68 | % | 15.35 | % | |||
Asset Quality Data: | |||||||
Allowance for Loan Losses: | |||||||
Balance at beginning of period | $30,873 | $29,802 | |||||
Provision charged to earnings | 2,400 | 2,700 | |||||
Charge-offs | (6,022 | ) | (2,335 | ) | |||
Recoveries | 635 | 706 | |||||
Balance at end of period | $27,886 | $30,873 | |||||
Net Loan Charge-Offs (Recoveries): | |||||||
Commercial mortgages | $4,833 | $43 | |||||
Other commercial | 205 | 1,076 | |||||
Residential real estate mortgages | 125 | 257 | |||||
Consumer | 224 | 253 | |||||
Total | $5,387 | $1,629 | |||||
Net charge-offs to average loans (annualized) | 0.27 | % | 0.07 | % | |||
Wealth Management Assets Under Administration: | |||||||
Balance at beginning of period | $4,199,640 | $3,900,061 | |||||
Net investment appreciation & income | 632,681 | 315,799 | |||||
Net client cash flows | (50,363 | ) | (16,220 | ) | |||
Balance at end of period | $4,781,958 | $4,199,640 | |||||
(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 | ||||||||||||||
Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | ||||||||||
Average Yield / Rate (taxable equivalent basis): | ||||||||||||||
Assets: | ||||||||||||||
Commercial loans | 4.52 | % | 4.67 | % | 4.58 | % | 4.70 | % | 4.90 | % | ||||
Residential real estate loans, including mortgage loans held for sale | 4.09 | % | 4.06 | % | 4.14 | % | 4.26 | % | 4.23 | % | ||||
Consumer loans | 3.77 | % | 3.78 | % | 3.81 | % | 3.84 | % | 3.86 | % | ||||
Total loans | 4.28 | % | 4.35 | % | 4.34 | % | 4.44 | % | 4.53 | % | ||||
Cash, federal funds sold and other short-term investments | 0.22 | % | 0.21 | % | 0.22 | % | 0.21 | % | 0.26 | % | ||||
FHLBB stock | 0.37 | % | 0.38 | % | 0.42 | % | 0.39 | % | 0.48 | % | ||||
Taxable debt securities | 3.40 | % | 3.44 | % | 3.52 | % | 3.56 | % | 3.49 | % | ||||
Nontaxable debt securities | 5.88 | % | 5.87 | % | 5.94 | % | 5.98 | % | 5.89 | % | ||||
Corporate stocks | — | % | — | % | — | % | — | % | — | % | ||||
Total securities | 3.78 | % | 3.88 | % | 3.97 | % | 3.98 | % | 3.86 | % | ||||
Total interest-earning assets | 4.02 | % | 4.12 | % | 4.17 | % | 4.24 | % | 4.31 | % | ||||
Liabilities: | ||||||||||||||
Interest-bearing demand deposits | — | % | — | % | — | % | — | % | — | % | ||||
NOW accounts | 0.06 | % | 0.06 | % | 0.06 | % | 0.06 | % | 0.07 | % | ||||
Money market accounts | 0.34 | % | 0.31 | % | 0.29 | % | 0.29 | % | 0.28 | % | ||||
Savings accounts | 0.06 | % | 0.06 | % | 0.07 | % | 0.07 | % | 0.09 | % | ||||
Time deposits | 1.19 | % | 1.23 | % | 1.25 | % | 1.28 | % | 1.32 | % | ||||
FHLBB advances | 3.49 | % | 3.25 | % | 3.29 | % | 3.21 | % | 3.27 | % | ||||
Junior subordinated debentures | 4.22 | % | 4.22 | % | 7.82 | % | 4.79 | % | 4.75 | % | ||||
Other | 2.52 | % | 4.50 | % | 5.87 | % | 1.77 | % | 5.51 | % | ||||
Total interest-bearing liabilities | 0.98 | % | 1.01 | % | 1.11 | % | 1.11 | % | 1.19 | % | ||||
Interest rate spread (taxable equivalent basis) | 3.04 | % | 3.11 | % | 3.06 | % | 3.13 | % | 3.12 | % | ||||
Net interest margin (taxable equivalent basis) | 3.24 | % | 3.29 | % | 3.26 | % | 3.32 | % | 3.33 | % | ||||
At December 31, 2013 | ||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||
(Dollars in thousands) | Cost (1) | Gains | Losses | Value | ||||||||||||
Securities Available for Sale: | ||||||||||||||||
Obligations of U.S. government-sponsored enterprises | $54,474 | $720 | ($79 | ) | $55,115 | |||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | 230,387 | 8,369 | (401 | ) | 238,355 | |||||||||||
States and political subdivisions | 60,659 | 2,200 | — | 62,859 | ||||||||||||
Trust preferred securities: | ||||||||||||||||
Individual name issuers | 30,715 | — | (6,031 | ) | 24,684 | |||||||||||
Collateralized debt obligations | 547 | — | — | 547 | ||||||||||||
Corporate bonds | 11,128 | 231 | (16 | ) | 11,343 | |||||||||||
Total securities available for sale | 387,910 | 11,520 | (6,527 | ) | 392,903 | |||||||||||
Held to Maturity: | ||||||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | 29,905 | 14 | (54 | ) | 29,865 | |||||||||||
Total securities held to maturity | 29,905 | 14 | (54 | ) | 29,865 | |||||||||||
Total securities | $417,815 | $11,534 | ($6,581 | ) | $422,768 | |||||||||||
(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) | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | |||||||||||
Loans: | ||||||||||||||||
Commercial: | Mortgages | $796,249 | $727,375 | $758,437 | $729,968 | $710,813 | ||||||||||
Construction & development | 36,289 | 51,951 | 39,449 | 34,179 | 27,842 | |||||||||||
Other | 530,797 | 518,566 | 512,228 | 513,000 | 513,764 | |||||||||||
Total commercial | 1,363,335 | 1,297,892 | 1,310,114 | 1,277,147 | 1,252,419 | |||||||||||
Residential real estate: | Mortgages | 749,163 | 711,427 | 728,158 | 702,418 | 692,798 | ||||||||||
Homeowner construction | 23,511 | 20,265 | 20,713 | 21,943 | 24,883 | |||||||||||
Total residential real estate | 772,674 | 731,692 | 748,871 | 724,361 | 717,681 | |||||||||||
Consumer: | Home equity lines | 231,362 | 227,063 | 228,367 | 226,640 | 226,861 | ||||||||||
Home equity loans | 40,212 | 41,158 | 41,312 | 40,134 | 39,329 | |||||||||||
Other | 55,301 | 55,961 | 56,316 | 56,763 | 57,713 | |||||||||||
Total consumer | 326,875 | 324,182 | 325,995 | 323,537 | 323,903 | |||||||||||
Total loans | $2,462,884 | $2,353,766 | $2,384,980 | $2,325,045 | $2,294,003 | |||||||||||
At December 31, 2013 | |||||
(Dollars in thousands) | Balance | % of Total | |||
Commercial Real Estate Loans by Property Location: | |||||
Rhode Island, Connecticut, Massachusetts | $791,682 | 95.1 | % | ||
New York, New Jersey | 32,126 | 3.9 | % | ||
New Hampshire | 8,730 | 1.0 | % | ||
Total commercial real estate loans (1) | $832,538 | 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 December 31, 2013 | |||||
(Dollars in thousands) | Balance | % of Total | |||
Residential Mortgages by Property Location: | |||||
Rhode Island, Connecticut, Massachusetts | $751,932 | 97.3 | % | ||
New Hampshire | 7,900 | 1.0 | % | ||
New York, Virginia, New Jersey, Maryland, Pennsylvania, District of Columbia | 6,972 | 0.9 | % | ||
Ohio | 2,509 | 0.3 | % | ||
Washington, Oregon | 1,356 | 0.2 | % | ||
Georgia | 1,083 | 0.1 | % | ||
New Mexico | 468 | 0.1 | % | ||
Other | 454 | 0.1 | % | ||
Total residential mortgages | $772,674 | 100.0 | % | ||
Period End Balances At | ||||||||||||||||
(Dollars in thousands) | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | |||||||||||
Deposits: | ||||||||||||||||
Demand deposits | $440,785 | $420,075 | $358,797 | $375,156 | $379,889 | |||||||||||
NOW accounts | 309,771 | 301,250 | 301,096 | 294,136 | 291,174 | |||||||||||
Money market accounts | 666,646 | 623,631 | 540,012 | 503,414 | 496,402 | |||||||||||
Savings accounts | 297,357 | 292,765 | 293,405 | 284,983 | 274,934 | |||||||||||
Time deposits | 790,762 | 817,110 | 811,299 | 861,952 | 870,232 | |||||||||||
Total deposits | $2,505,321 | $2,454,831 | $2,304,609 | $2,319,641 | $2,312,631 | |||||||||||
Out-of-market brokered certificates of deposits included in time deposits | $98,009 | $106,231 | $96,177 | $103,045 | $102,636 | |||||||||||
In-market deposits, excluding out-of-market brokered certificates of deposit | $2,407,312 | $2,348,600 | $2,208,432 | $2,216,596 | $2,209,995 | |||||||||||
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||||
SELECTED FINANCIAL HIGHLIGHTS (unaudited) | |||||||||||||||||||
Period End Balances At | |||||||||||||||||||
(Dollars in thousands) | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | ||||||||||||||
Asset Quality Data: | |||||||||||||||||||
Nonperforming Assets: | |||||||||||||||||||
Commercial mortgages | $7,492 | $8,956 | $9,976 | $14,953 | $10,681 | ||||||||||||||
Commercial construction and development | — | — | — | — | — | ||||||||||||||
Other commercial | 1,291 | 1,248 | 1,400 | 3,122 | 4,412 | ||||||||||||||
Residential real estate mortgages | 8,315 | 8,095 | 7,526 | 6,699 | 6,158 | ||||||||||||||
Consumer | 1,204 | 1,204 | 1,124 | 901 | 1,292 | ||||||||||||||
Total nonaccrual loans | $18,302 | $19,503 | $20,026 | $25,675 | $22,543 | ||||||||||||||
Nonaccrual investment securities | 547 | 425 | 397 | 404 | 843 | ||||||||||||||
Property acquired through foreclosure or repossession | 932 | 594 | 1,230 | 2,625 | 2,047 | ||||||||||||||
Total nonperforming assets | $19,781 | $20,522 | $21,653 | $28,704 | $25,433 | ||||||||||||||
Total past due loans to total loans | 0.89 | % | 1.02 | % | 1.09 | % | 1.13 | % | 1.22 | % | |||||||||
Nonperforming assets to total assets | 0.62 | % | 0.66 | % | 0.71 | % | 0.94 | % | 0.83 | % | |||||||||
Nonaccrual loans to total loans | 0.74 | % | 0.83 | % | 0.84 | % | 1.10 | % | 0.98 | % | |||||||||
Allowance for loan losses to nonaccrual loans | 152.37 | % | 143.61 | % | 139.24 | % | 121.28 | % | 136.95 | % | |||||||||
Allowance for loan losses to total loans | 1.13 | % | 1.19 | % | 1.17 | % | 1.34 | % | 1.35 | % | |||||||||
Troubled Debt Restructured Loans: | |||||||||||||||||||
Accruing troubled debt restructured loans: | |||||||||||||||||||
Commercial mortgages | $22,800 | $23,892 | $19,018 | $9,600 | $9,569 | ||||||||||||||
Other commercial | 1,265 | 1,576 | 2,602 | 6,554 | 6,577 | ||||||||||||||
Residential real estate mortgages | 1,442 | 870 | 876 | 1,599 | 1,123 | ||||||||||||||
Consumer | 236 | 239 | 242 | 244 | 154 | ||||||||||||||
Accruing troubled debt restructured loans | 25,743 | 26,577 | 22,738 | 17,997 | 17,423 | ||||||||||||||
Nonaccrual troubled debt restructured loans: | |||||||||||||||||||
Commercial mortgages | — | — | — | — | — | ||||||||||||||
Other commercial | 542 | 547 | 590 | 721 | 2,063 | ||||||||||||||
Residential real estate mortgages | — | — | 144 | 155 | 688 | ||||||||||||||
Consumer | 38 | 40 | 42 | 42 | 44 | ||||||||||||||
Nonaccrual troubled debt restructured loans | 580 | 587 | 776 | 918 | 2,795 | ||||||||||||||
Total troubled debt restructured loans | $26,323 | $27,164 | $23,514 | $18,915 | $20,218 | ||||||||||||||
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||||
SELECTED FINANCIAL HIGHLIGHTS (unaudited) | |||||||||||||||||||
Period End Balances At | |||||||||||||||||||
(Dollars in thousands) | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | ||||||||||||||
Past Due Loans: | |||||||||||||||||||
Loans 30-59 Days Past Due: | |||||||||||||||||||
Commercial mortgages | $— | $— | $— | $— | $373 | ||||||||||||||
Other commercial loans | 276 | 2,648 | 505 | 689 | 260 | ||||||||||||||
Residential real estate mortgages | 4,040 | 2,624 | 4,051 | 3,891 | 4,840 | ||||||||||||||
Consumer loans | 1,322 | 1,013 | 1,588 | 1,534 | 1,134 | ||||||||||||||
Loans 30-59 days past due | $5,638 | $6,285 | $6,144 | $6,114 | $6,607 | ||||||||||||||
Loans 60-89 Days Past Due: | |||||||||||||||||||
Commercial mortgages | $— | $730 | $536 | $193 | $408 | ||||||||||||||
Other commercial loans | 302 | 8 | 34 | 341 | 296 | ||||||||||||||
Residential real estate mortgages | 1,285 | 1,960 | 1,697 | 1,451 | 1,951 | ||||||||||||||
Consumer loans | 166 | 328 | 689 | 461 | 385 | ||||||||||||||
Loans 60-89 days past due | $1,753 | $3,026 | $2,956 | $2,446 | $3,040 | ||||||||||||||
Loans 90 Days or more Past Due: | |||||||||||||||||||
Commercial mortgages | $7,492 | $8,226 | $8,895 | $9,852 | $10,300 | ||||||||||||||
Other commercial loans | 731 | 929 | 3,428 | 2,961 | 3,647 | ||||||||||||||
Residential real estate mortgages | 5,633 | 4,843 | 4,266 | 4,327 | 3,658 | ||||||||||||||
Consumer loans | 656 | 693 | 415 | 484 | 844 | ||||||||||||||
Loans 90 days or more past due | $14,512 | $14,691 | $17,004 | $17,624 | $18,449 | ||||||||||||||
Total Past Due Loans: | |||||||||||||||||||
Commercial mortgages | $7,492 | $8,956 | $9,431 | $10,045 | $11,081 | ||||||||||||||
Other commercial loans | 1,309 | 3,585 | 3,967 | 3,991 | 4,203 | ||||||||||||||
Residential real estate mortgages | 10,958 | 9,427 | 10,014 | 9,669 | 10,449 | ||||||||||||||
Consumer loans | 2,144 | 2,034 | 2,692 | 2,479 | 2,363 | ||||||||||||||
Total past due loans | $21,903 | $24,002 | $26,104 | $26,184 | $28,096 | ||||||||||||||
Accruing loans 90 days or more past due | $— | $— | $2,431 | $— | $— | ||||||||||||||
Nonaccrual loans included in past due loans | $15,591 | $17,275 | $17,208 | $19,000 | $20,979 | ||||||||||||||
For the Quarters Ended | |||||||||||||||||||
(Dollars in thousands) | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | ||||||||||||||
Allowance for Loan Losses: | |||||||||||||||||||
Balance at beginning of period | $28,008 | $27,884 | $31,139 | $30,873 | $30,752 | ||||||||||||||
Provision charged to earnings | 400 | 700 | 700 | 600 | 600 | ||||||||||||||
Charge-offs | (703 | ) | (770 | ) | (4,175 | ) | (374 | ) | (534 | ) | |||||||||
Recoveries | 181 | 194 | 220 | 40 | 55 | ||||||||||||||
Balance at end of period | $27,886 | $28,008 | $27,884 | $31,139 | $30,873 | ||||||||||||||
Net Loan Charge-Offs (Recoveries): | |||||||||||||||||||
Commercial mortgages | $309 | $602 | $3,814 | $108 | $212 | ||||||||||||||
Other commercial | 73 | (2 | ) | 63 | 71 | 225 | |||||||||||||
Residential real estate mortgages | 80 | — | 36 | 9 | 39 | ||||||||||||||
Consumer | 60 | (24 | ) | 42 | 146 | 3 | |||||||||||||
Total | $522 | $576 | $3,955 | $334 | $479 | ||||||||||||||
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 | |||||||||||||||||||||||||||
December 31, 2013 | September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||
Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||
Commercial loans | $1,310,584 | $14,944 | 4.52 | % | $1,297,705 | $15,274 | 4.67 | % | $1,227,120 | $15,121 | 4.90 | % | |||||||||||||||
Residential real estate loans, including mortgage loans held for sale | 771,272 | 7,947 | 4.09 | % | 780,323 | 7,991 | 4.06 | % | 757,764 | 8,049 | 4.23 | % | |||||||||||||||
Consumer loans | 323,778 | 3,078 | 3.77 | % | 323,398 | 3,083 | 3.78 | % | 322,476 | 3,131 | 3.86 | % | |||||||||||||||
Total loans | 2,405,634 | 25,969 | 4.28 | % | 2,401,426 | 26,348 | 4.35 | % | 2,307,360 | 26,301 | 4.53 | % | |||||||||||||||
Cash, federal funds sold and short-term investments | 104,718 | 59 | 0.22 | % | 87,048 | 47 | 0.21 | % | 42,056 | 27 | 0.26 | % | |||||||||||||||
FHLBB stock | 37,730 | 35 | 0.37 | % | 37,730 | 36 | 0.38 | % | 40,418 | 49 | 0.48 | % | |||||||||||||||
Taxable debt securities | 350,821 | 3,005 | 3.40 | % | 297,532 | 2,582 | 3.44 | % | 369,736 | 3,241 | 3.49 | % | |||||||||||||||
Nontaxable debt securities | 63,524 | 941 | 5.88 | % | 64,836 | 960 | 5.87 | % | 68,198 | 1,010 | 5.89 | % | |||||||||||||||
Corporate stocks | — | — | — | % | — | — | — | % | — | — | — | % | |||||||||||||||
Total securities | 414,345 | 3,946 | 3.78 | % | 362,368 | 3,542 | 3.88 | % | 437,934 | 4,251 | 3.86 | % | |||||||||||||||
Total interest-earning assets | 2,962,427 | 30,009 | 4.02 | % | 2,888,572 | 29,973 | 4.12 | % | 2,827,768 | 30,628 | 4.31 | % | |||||||||||||||
Noninterest-earning assets | 200,615 | 209,656 | 216,996 | ||||||||||||||||||||||||
Total assets | $3,163,042 | $3,098,228 | $3,044,764 | ||||||||||||||||||||||||
Liabilities and Shareholders' Equity: | |||||||||||||||||||||||||||
Interest-bearing demand deposits | $10,877 | $— | — | % | $6,688 | $— | — | % | $— | $— | — | % | |||||||||||||||
NOW accounts | 300,113 | 48 | 0.06 | % | 293,634 | 45 | 0.06 | % | 276,572 | 49 | 0.07 | % | |||||||||||||||
Money market accounts | 653,731 | 560 | 0.34 | % | 591,860 | 456 | 0.31 | % | 473,747 | 338 | 0.28 | % | |||||||||||||||
Savings accounts | 293,434 | 47 | 0.06 | % | 295,821 | 47 | 0.06 | % | 271,716 | 60 | 0.09 | % | |||||||||||||||
Time deposits | 802,979 | 2,411 | 1.19 | % | 811,850 | 2,516 | 1.23 | % | 886,355 | 2,933 | 1.32 | % | |||||||||||||||
FHLBB advances | 288,212 | 2,534 | 3.49 | % | 328,705 | 2,693 | 3.25 | % | 382,465 | 3,148 | 3.27 | % | |||||||||||||||
Junior subordinated debentures | 22,681 | 241 | 4.22 | % | 22,681 | 241 | 4.22 | % | 32,991 | 394 | 4.75 | % | |||||||||||||||
Other | 629 | 4 | 2.52 | % | 353 | 4 | 4.50 | % | 289 | 4 | 5.51 | % | |||||||||||||||
Total interest-bearing liabilities | 2,372,656 | 5,845 | 0.98 | % | 2,351,592 | 6,002 | 1.01 | % | 2,324,135 | 6,926 | 1.19 | % | |||||||||||||||
Demand deposits | 425,316 | 384,665 | 362,060 | ||||||||||||||||||||||||
Other liabilities | 38,204 | 51,186 | 58,139 | ||||||||||||||||||||||||
Shareholders' equity | 326,866 | 310,785 | 300,430 | ||||||||||||||||||||||||
Total liabilities and shareholders' equity | $3,163,042 | $3,098,228 | $3,044,764 | ||||||||||||||||||||||||
Net interest income (FTE) | $24,164 | $23,971 | $23,702 | ||||||||||||||||||||||||
Interest rate spread | 3.04 | % | 3.11 | % | 3.12 | % | |||||||||||||||||||||
Net interest margin | 3.24 | % | 3.29 | % | 3.33 | % | |||||||||||||||||||||
Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:
(Dollars in thousands) | Three Months Ended | ||||||||||
Dec 31, 2013 | Sep 30, 2013 | Dec 31, 2012 | |||||||||
Commercial loans | $320 | $252 | $192 | ||||||||
Nontaxable debt securities | 323 | 331 | 346 | ||||||||
Corporate stocks | — | — | — | ||||||||
Total | $643 | $583 | $538 | ||||||||
Washington Trust Bancorp, Inc. and Subsidiaries | ||||||||||||||||||
CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited) | ||||||||||||||||||
Years ended December 31, | 2013 | 2012 | ||||||||||||||||
Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | |||||||||||||
(Dollars in thousands) | ||||||||||||||||||
Assets: | ||||||||||||||||||
Commercial loans | $1,286,029 | $59,387 | 4.62 | % | $1,177,268 | $58,823 | 5.00 | % | ||||||||||
Residential real estate loans, including mortgage loans held for sale | 767,450 | 31,752 | 4.14 | % | 733,178 | 31,974 | 4.36 | % | ||||||||||
Consumer loans | 323,847 | 12,304 | 3.80 | % | 320,828 | 12,428 | 3.87 | % | ||||||||||
Total loans | 2,377,326 | 103,443 | 4.35 | % | 2,231,274 | 103,225 | 4.63 | % | ||||||||||
Cash, federal funds sold and short-term investments | 72,726 | 158 | 0.22 | % | 41,359 | 91 | 0.22 | % | ||||||||||
FHLBB stock | 38,238 | 148 | 0.39 | % | 40,713 | 207 | 0.51 | % | ||||||||||
Taxable debt securities | 316,440 | 11,008 | 3.48 | % | 431,024 | 15,359 | 3.56 | % | ||||||||||
Nontaxable debt securities | 65,708 | 3,889 | 5.92 | % | 69,838 | 4,115 | 5.89 | % | ||||||||||
Corporate stocks | — | — | — | % | 910 | 68 | 7.47 | % | ||||||||||
Total securities | 382,148 | 14,897 | 3.90 | % | 501,772 | 19,542 | 3.89 | % | ||||||||||
Total interest-earning assets | 2,870,438 | 118,646 | 4.13 | % | 2,815,118 | 123,065 | 4.37 | % | ||||||||||
Noninterest-earning assets | 208,463 | 221,031 | ||||||||||||||||
Total assets | $3,078,901 | $3,036,149 | ||||||||||||||||
Liabilities and Shareholders' Equity: | ||||||||||||||||||
Interest-bearing demand deposits | $4,461 | $— | — | % | $— | $— | — | % | ||||||||||
NOW accounts | 291,705 | 183 | 0.06 | % | 259,595 | 175 | 0.07 | % | ||||||||||
Money market accounts | 569,534 | 1,749 | 0.31 | % | 430,262 | 1,078 | 0.25 | % | ||||||||||
Savings accounts | 288,892 | 186 | 0.06 | % | 261,795 | 276 | 0.11 | % | ||||||||||
Time deposits | 831,729 | 10,302 | 1.24 | % | 893,474 | 12,061 | 1.35 | % | ||||||||||
FHLBB advances | 322,118 | 10,643 | 3.30 | % | 466,424 | 14,957 | 3.21 | % | ||||||||||
Junior subordinated debentures | 27,398 | 1,484 | 5.42 | % | 32,991 | 1,570 | 4.76 | % | ||||||||||
Other | 581 | 16 | 2.75 | % | 5,093 | 248 | 4.87 | % | ||||||||||
Total interest-bearing liabilities | 2,336,418 | 24,563 | 1.05 | % | 2,349,634 | 30,365 | 1.29 | % | ||||||||||
Demand deposits | 384,323 | 338,046 | ||||||||||||||||
Other liabilities | 47,961 | 55,382 | ||||||||||||||||
Shareholders' equity | 310,199 | 293,087 | ||||||||||||||||
Total liabilities and shareholders' equity | $3,078,901 | $3,036,149 | ||||||||||||||||
Net interest income (FTE) | $94,083 | $92,700 | ||||||||||||||||
Interest rate spread | 3.08 | % | 3.08 | % | ||||||||||||||
Net interest margin | 3.28 | % | 3.29 | % | ||||||||||||||
Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:
(Dollars in thousands) | |||||||
Years ended December 31, | 2013 | 2012 | |||||
Commercial loans | $962 | $569 | |||||
Nontaxable debt securities | 1,336 | 1,416 | |||||
Corporate stocks | — | 19 | |||||
Total | $2,298 | $2,004 | |||||
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) | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | ||||||||||
Calculation of Tangible Book Value per Share: | |||||||||||||||
Total shareholders' equity at end of period | $329,646 | $323,585 | $303,370 | $301,291 | $295,652 | ||||||||||
Less: | |||||||||||||||
Goodwill | 58,114 | 58,114 | 58,114 | 58,114 | 58,114 | ||||||||||
Identifiable intangible assets, net | 5,493 | 5,657 | 5,827 | 6,000 | 6,173 | ||||||||||
Total tangible shareholders' equity at end of period | $266,039 | $259,814 | $239,429 | $237,177 | $231,365 | ||||||||||
Shares outstanding at end of period | 16,614 | 16,589 | 16,487 | 16,425 | 16,380 | ||||||||||
Book value per share - GAAP | $19.84 | $19.51 | $18.40 | $18.34 | $18.05 | ||||||||||
Tangible book value per share - Non-GAAP | $16.01 | $15.66 | $14.52 | $14.44 | $14.12 | ||||||||||
Calculation of Tangible Equity to Tangible Assets: | |||||||||||||||
Total tangible shareholders' equity at end of period | $266,039 | $259,814 | $239,429 | $237,177 | $231,365 | ||||||||||
Total assets at end of period | $3,188,867 | $3,131,958 | $3,061,307 | $3,051,848 | $3,071,884 | ||||||||||
Less: | |||||||||||||||
Goodwill | 58,114 | 58,114 | 58,114 | 58,114 | 58,114 | ||||||||||
Identifiable intangible assets, net | 5,493 | 5,657 | 5,827 | 6,000 | 6,173 | ||||||||||
Total tangible assets at end of period | $3,125,260 | $3,068,187 | $2,997,366 | $2,987,734 | $3,007,597 | ||||||||||
Equity to assets - GAAP | 10.34 | % | 10.33 | % | 9.91 | % | 9.87 | % | 9.62 | % | |||||
Tangible equity to tangible assets - Non-GAAP | 8.51 | % | 8.47 | % | 7.99 | % | 7.94 | % | 7.69 | % | |||||
Calculation of Return on Average Tangible Assets: | |||||||||||||||
Net income | $9,789 | $9,960 | $8,983 | $7,421 | $9,023 | ||||||||||
Total average assets | $3,163,042 | $3,098,228 | $3,034,956 | $3,017,583 | $3,044,764 | ||||||||||
Less: | |||||||||||||||
Average goodwill | 58,114 | 58,114 | 58,114 | 58,114 | 58,114 | ||||||||||
Average identifiable intangible assets, net | 5,573 | 5,739 | 5,912 | 6,085 | 6,257 | ||||||||||
Total average tangible assets | $3,099,355 | $3,034,375 | $2,970,930 | $2,953,384 | $2,980,393 | ||||||||||
Return on average assets - GAAP | 1.24 | % | 1.29 | % | 1.18 | % | 0.98 | % | 1.19 | % | |||||
Return on average tangible assets - Non-GAAP | 1.26 | % | 1.31 | % | 1.21 | % | 1.01 | % | 1.21 | % | |||||
Calculation of Return on Average Tangible Equity: | |||||||||||||||
Net income | $9,789 | $9,960 | $8,983 | $7,421 | $9,023 | ||||||||||
Total average shareholders' equity | $326,866 | $310,785 | $303,402 | $299,436 | $300,430 | ||||||||||
Less: | |||||||||||||||
Average goodwill | 58,114 | 58,114 | 58,114 | 58,114 | 58,114 | ||||||||||
Average identifiable intangible assets, net | 5,573 | 5,739 | 5,912 | 6,085 | 6,257 | ||||||||||
Total average tangible shareholders' equity | $263,179 | $246,932 | $239,376 | $235,237 | $236,059 | ||||||||||
Return on average shareholders' equity - GAAP | 11.98 | % | 12.82 | % | 11.84 | % | 9.91 | % | 12.01 | % | |||||
Return on average tangible shareholders' equity - Non-GAAP | 14.80 | % | 16.13 | % | 15.01 | % | 12.62 | % | 15.29 | % | |||||
Washington Trust Bancorp, Inc. and Subsidiaries | ||||||
SUPPLEMENTAL INFORMATION - Non-GAAP Financial Measures (unaudited) | ||||||
Years Ended | ||||||
(Dollars in thousands) | Dec 31, 2013 | Dec 31, 2012 | ||||
Calculation of return on average tangible assets: | ||||||
Net income | $36,153 | $35,074 | ||||
Total average assets | $3,078,901 | $3,036,149 | ||||
Less: | ||||||
Average goodwill | 58,114 | 58,114 | ||||
Average identifiable intangible assets, net | 5,826 | 6,528 | ||||
Total average tangible assets | $3,014,961 | $2,971,507 | ||||
Return on average assets - GAAP | 1.17 | % | 1.16 | % | ||
Return on average tangible assets - Non-GAAP | 1.20 | % | 1.18 | % | ||
Calculation of return on average tangible equity: | ||||||
Net income | $36,153 | $35,074 | ||||
Total average shareholders' equity | $310,199 | $293,087 | ||||
Less: | ||||||
Average goodwill | 58,114 | 58,114 | ||||
Average identifiable intangible assets, net | 5,826 | 6,528 | ||||
Total average tangible shareholders' equity | $246,259 | $228,445 | ||||
Return on average shareholders' equity - GAAP | 11.65 | % | 11.97 | % | ||
Return on average tangible shareholders' equity - Non-GAAP | 14.68 | % | 15.35 | % | ||