Attached files
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| 8-K - 8-K - WASHINGTON TRUST BANCORP INC | form8-k2015q3earningsrelea.htm |
Exhibit 99.1
NASDAQ: WASH
Contact: Elizabeth B. Eckel
Senior Vice President, Marketing
Telephone: (401) 348-1309
E-mail: ebeckel@washtrust.com
Date: October 19, 2015
FOR IMMEDIATE RELEASE
Washington Trust Reports Third Quarter 2015 Earnings
WESTERLY, R.I., October 19, 2015 (GLOBE NEWSWIRE)…Washington Trust Bancorp, Inc. (Nasdaq:WASH), parent company of The Washington Trust Company, today announced net income of $10.2 million, or 60 cents per diluted share, for the third quarter of 2015, compared to net income of $11.5 million, or 68 cents per diluted share, reported for the second quarter of 2015. The decrease in earnings was largely reflective of conditions affecting revenues in several business lines, including mortgage banking, commercial banking and wealth management.
Earnings on a year-to-date basis are up 10% over the same period in 2014. Returns on average equity and average assets were 12.17% and 1.20%, respectively, for the nine months ended September 30, 2015, compared to 11.60% and 1.21%, respectively, for the same period in 2014.
"Washington Trust's third quarter results reflect our continued efforts to compete and grow in a challenging environment," stated Joseph J. MarcAurele, Chairman and Chief Executive Officer. "During the quarter we completed the acquisition of Halsey Associates, Inc., providing a wealth management presence and client base in Connecticut. While loan growth was affected by strong competition and other factors, asset quality remained very satisfactory and we had solid deposit growth in the quarter."
Acquisition of Halsey Associates, Inc.
The acquisition of Halsey Associates, Inc. ("Halsey"), a registered investment adviser firm located in New Haven, CT, was completed on August 1, 2015. The cost to acquire Halsey was $10.0 million, including approximately $1.7 million in cash, $5.4 million in the form of 136,543 shares of Washington Trust common stock and $2.9 million for the estimated present value of future earn-outs to be paid. As of the date of acquisition, Halsey's assets under administration amounted to approximately $840 million. The transaction resulted in the recognition of intangible assets and goodwill of approximately $6.6 million and $6.7 million, respectively. Acquisition related expenses amounted to $504 thousand in the third quarter and $433 thousand in the second quarter. On an after-tax basis, these acquisition related expenses resulted in a charge of 3 cents per diluted share in the third quarter of 2015 and 2 cents per diluted share in the second quarter of 2015. A small amount of acquisition related expenses is expected to be recognized in the fourth quarter of 2015.
Washington Trust
Page 2, October 19, 2015
Net Interest Income
Net interest income totaled $26.0 million for the third quarter of 2015, a slight decrease from the second quarter of 2015. This reflects continued pressure on net interest margin, a lower level of prepayment fee income and a modest increase of average interest‑earning assets of $46.1 million, or 1%.
The net interest margin was 3.07% for the third quarter of 2015, down 8 basis points from the previous quarter. Commercial loan prepayment fee income, which is included in net interest income, amounted to $169 thousand in the third quarter of 2015, compared to $519 thousand in the prior quarter. Excluding the loan prepayment fee income in each period, the third quarter net interest margin was 3.05%, down by 4 basis points on a linked quarter basis. This decline in the net interest margin reflects continued pressure on asset yields resulting from a sustained low interest rate environment.
Noninterest Income
Noninterest income totaled $13.9 million for the third quarter of 2015, down by $1.3 million, or 9%, from the second quarter of 2015. Significant linked quarter changes included:
• | Wealth management revenues totaled $8.9 million for the third quarter, down slightly by $10 thousand, or 0.1%, from the previous quarter. While total wealth management revenues were essentially unchanged, included in these results were $662 thousand of revenues generated by Halsey since the August 1 acquisition date. Overall wealth management revenues were affected by equity market declines in the quarter and also included a $344 thousand decline in tax preparation fees, which are typically concentrated in the second quarter. |
Wealth management assets under administration amounted to $5.7 billion at September 30, 2015, up by $503 million, or 9.6%, in the quarter. While the net increase reflects the addition of assets under administration attributable to Halsey, total wealth management assets under administration were impacted by financial market declines.
• | Mortgage banking revenues (net gains on loan sales and commissions on loans originated for others) totaled $2.0 million for the third quarter, down by $785 thousand, or 29%, on a linked quarter basis. The decline largely reflects a lower yield on loan sales and a decrease in loan sales volume. Residential mortgage loans sold to the secondary market amounted to $132.4 million in the third quarter, down by $10.8 million, compared to the second quarter. |
• | Loan related derivative income amounted to $327 thousand in the third quarter, down by $390 thousand from the prior quarter. |
• | Other income totaled $457 thousand for the third quarter, down by $205 thousand on a linked quarter basis. The decrease was largely due to a $250 thousand settlement payment received in the second quarter on a trust preferred debt obligation previously held by the Corporation. On an after-tax basis, this second quarter transaction amounted to 1 cent per diluted share. |
Washington Trust
Page 3, October 19, 2015
Noninterest Expenses
Noninterest expenses totaled $24.5 million for the third quarter of 2015, up by $239 thousand, or 1%, from the second quarter of 2015. The increase in noninterest expenses was largely attributable to the addition of Halsey for the two-month period since the date of acquisition, offset, in part, by a decline in advertising and promotion expenses due to the timing of promotional activities. Halsey noninterest expenses since the date of acquisition totaled $447 thousand, including $289 thousand of salaries and benefits expense and $110 thousand of amortization of intangible assets.
Income tax expense amounted to $5.0 million for the third quarter of 2015, down by $423 thousand, or 8%, from the amount recognized in the previous quarter. The effective tax rate for the third quarter of 2015 was 32.7%, compared to 31.9% for the second quarter of 2015. The effective tax rate for the remainder of 2015 will be approximately 32.5%.
Loans
Total loans amounted to $2.9 billion at September 30, 2015, up by $21.3 million, or 1%, from the balance at June 30, 2015. Significant linked quarter changes included:
• | Total commercial loans decreased by $3.7 million, or 0.2%, with an $8.0 million increase in commercial real estate and an $11.7 million decline in commercial and industrial. The $8.0 million increase in the commercial real estate portfolio included a $10.9 million increase in construction and development loans, but was hindered by unscheduled loan payoffs of approximately $36 million in the most recent quarter. The decline in the commercial and industrial portfolio was primarily due to decreased line utilization by commercial borrowers. |
• | The residential real estate loan portfolio grew by $23.0 million, or 2%. |
• | Consumer loans increased by $2.1 million, or 1%, with growth in home equity lines of credit. |
Investment Securities
The securities portfolio amounted to $344.9 million at September 30, 2015, down $29.0 million, or 8%, from the balance at June 30, 2015. The decrease reflects calls of securities and routine principal pay-downs on mortgage backed securities, partially offset by purchases of U.S. government agency securities.
Deposits and Borrowings
Total deposits grew by $97.2 million, or 4%, in the third quarter of 2015 and amounted to $2.8 billion at September 30, 2015. Wholesale brokered time deposits decreased by $17.0 million from the previous quarter. Excluding wholesale brokered time deposits, in-market deposits increased by $114.2 million, or 5%. This increase included a $56.1 million, or 12%, increase in demand deposit accounts.
FHLBB advances amounted to $381.6 million at September 30, 2015, down by $89.7 million, or 19%, from June 30, 2015.
Washington Trust
Page 4, October 19, 2015
Asset Quality
Asset quality metrics remained at manageable levels in the third quarter of 2015. Total nonaccrual loans amounted to $16.8 million, or 0.57% of total loans, at September 30, 2015, up from $15.1 million, or 0.52%, at June 30, 2015. Total past due loans amounted to $21.8 million, or 0.74% of total loans, at September 30, 2015, down from $24.0 million, or 0.82% of total loans, at June 30, 2015.
A loan loss provision totaling $200 thousand was charged to earnings in the third quarter of 2015, compared to a loss provision of $100 thousand recognized in the second quarter of 2015. The third quarter provision includes loan loss allocations commensurate with growth in loan portfolio balances, offset by reductions in other loan loss exposures based on management's assessment of continued improvement in credit quality conditions. Net charge-offs amounted to $626 thousand in the third quarter of 2015, compared to $323 thousand in the second quarter of 2015. The allowance for loan losses was $27.2 million, or 0.92% of total loans, at September 30, 2015, compared to $27.6 million, or 0.94% of total loans, at June 30, 2015.
Capital and Dividends
Total shareholder's equity was $370.5 million at September 30, 2015, up by $11.4 million from June 30, 2015. Capital levels at September 30, 2015 exceeded the regulatory minimum levels to be considered well capitalized, with a total risk‑based capital ratio of 12.80% at September 30, 2015, compared to 12.78% at June 30, 2015.
The Board of Directors declared a quarterly dividend of 34 cents per share for the quarter ended September 30, 2015. The dividend was paid on October 14, 2015 to shareholders of record on October 1, 2015.
Conference Call
Washington Trust will host a conference call to discuss third quarter results, business highlights and outlook on Tuesday, October 20, 2015 at 8:30 a.m. (Eastern Time). Individuals may dial in to the call at 1-877-407-0784. An audio replay of the call will be available, shortly after the conclusion of the call, by dialing 1-877-870-5176 and entering the Replay PIN Number 13621367; the audio replay will be available through October 30, 2015. Also, a webcast of the call will be posted in the Investor Relations section of Washington Trust's web site, www.washtrustbancorp.com, and will be available through December 31, 2015.
Washington Trust
Page 5, October 19, 2015
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 NASDAQ OMX® under the symbol WASH. Investor information is available on the Corporation’s web site: www.washtrustbancorp.com.
Forward-Looking Statements
This press release contains statements that are “forward-looking statements”. We may also make forward-looking statements in other documents we file with the SEC, in 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: weakness in national, regional or international economic conditions or conditions affecting the banking or financial services industries or financial capital markets; volatility in national and international financial markets; 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 the our competition; changes in legislation or regulation and accounting principles, policies and guidelines; the ability to fully realize the expected cost savings and revenues from the Halsey acquisition; 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, 2014, as updated by our Quarterly Reports on Form 10-Q and other filings submitted to the SEC, may result in these differences. You should carefully review all of these factors and you should be aware that there may be other factors that could cause these differences. These forward-looking statements were based on information, plans and estimates at the date of this report, and we assume no obligation to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes.
Supplemental Information - Explanation of Non-GAAP Financial Measures
In addition to results presented in accordance with generally accepted accounting principles (“GAAP”), this press release contains certain non-GAAP financial measures. Washington Trust's management believes that the supplemental non-GAAP information, which consists of measurements and ratios based on tangible equity and tangible assets, is utilized by regulators and market analysts to evaluate a company's financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.
Washington Trust Bancorp, Inc. and Subsidiaries | ||||||||
CONSOLIDATED BALANCE SHEETS (unaudited) | ||||||||
(Dollars in thousands, except par value) | Sep 30, 2015 | Dec 31, 2014 | ||||||
Assets: | ||||||||
Cash and due from banks | $106,445 | $76,386 | ||||||
Short-term investments | 3,629 | 3,964 | ||||||
Mortgage loans held for sale (including $21,136 at September 30, 2015 and $30,321 at December 31, 2014 measured at fair value) | 31,805 | 45,693 | ||||||
Securities: | ||||||||
Available for sale, at fair value | 323,795 | 357,662 | ||||||
Held to maturity, at amortized cost (fair value $21,820 at September 30, 2015 and $26,008 at December 31, 2014) | 21,140 | 25,222 | ||||||
Total securities | 344,935 | 382,884 | ||||||
Federal Home Loan Bank stock, at cost | 37,730 | 37,730 | ||||||
Loans: | ||||||||
Commercial | 1,579,854 | 1,535,488 | ||||||
Residential real estate | 1,024,214 | 985,415 | ||||||
Consumer | 345,850 | 338,373 | ||||||
Total loans | 2,949,918 | 2,859,276 | ||||||
Less allowance for loan losses | 27,161 | 28,023 | ||||||
Net loans | 2,922,757 | 2,831,253 | ||||||
Premises and equipment, net | 28,180 | 27,495 | ||||||
Investment in bank-owned life insurance | 65,000 | 63,519 | ||||||
Goodwill | 64,803 | 58,114 | ||||||
Identifiable intangible assets, net | 10,832 | 4,849 | ||||||
Other assets | 58,720 | 54,987 | ||||||
Total assets | $3,674,836 | $3,586,874 | ||||||
Liabilities: | ||||||||
Deposits: | ||||||||
Demand deposits | $513,856 | $459,852 | ||||||
NOW accounts | 358,973 | 326,375 | ||||||
Money market accounts | 855,858 | 802,764 | ||||||
Savings accounts | 305,775 | 291,725 | ||||||
Time deposits | 801,818 | 874,102 | ||||||
Total deposits | 2,836,280 | 2,754,818 | ||||||
Federal Home Loan Bank advances | 381,649 | 406,297 | ||||||
Junior subordinated debentures | 22,681 | 22,681 | ||||||
Other liabilities | 63,699 | 56,799 | ||||||
Total liabilities | 3,304,309 | 3,240,595 | ||||||
Shareholders’ Equity: | ||||||||
Common stock of $.0625 par value; authorized 30,000,000 shares; issued and outstanding 16,984,737 shares at September 30, 2015 and 16,746,363 shares at December 31, 2014 | 1,062 | 1,047 | ||||||
Paid-in capital | 109,724 | 101,204 | ||||||
Retained earnings | 268,166 | 252,837 | ||||||
Accumulated other comprehensive loss | (8,425 | ) | (8,809 | ) | ||||
Total shareholders’ equity | 370,527 | 346,279 | ||||||
Total liabilities and shareholders’ equity | $3,674,836 | $3,586,874 | ||||||
Washington Trust Bancorp, Inc. and Subsidiaries | ||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME (unaudited) | ||||||||||||||||
(Dollars and shares in thousands, except per share amounts) | Three Months | Nine Months | ||||||||||||||
Periods ended September 30, | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Interest income: | ||||||||||||||||
Interest and fees on loans | $28,626 | $27,239 | $85,718 | $78,997 | ||||||||||||
Interest on securities: | Taxable | 2,178 | 2,397 | 6,613 | 8,038 | |||||||||||
Nontaxable | 366 | 519 | 1,203 | 1,658 | ||||||||||||
Dividends on Federal Home Loan Bank stock | 309 | 140 | 638 | 420 | ||||||||||||
Other interest income | 47 | 36 | 101 | 99 | ||||||||||||
Total interest and dividend income | 31,526 | 30,331 | 94,273 | 89,212 | ||||||||||||
Interest expense: | ||||||||||||||||
Deposits | 3,308 | 3,317 | 10,045 | 9,406 | ||||||||||||
Federal Home Loan Bank advances | 1,987 | 1,832 | 5,780 | 5,831 | ||||||||||||
Junior subordinated debentures | 232 | 241 | 714 | 723 | ||||||||||||
Other interest expense | 2 | 3 | 7 | 10 | ||||||||||||
Total interest expense | 5,529 | 5,393 | 16,546 | 15,970 | ||||||||||||
Net interest income | 25,997 | 24,938 | 77,727 | 73,242 | ||||||||||||
Provision for loan losses | 200 | 600 | 300 | 1,350 | ||||||||||||
Net interest income after provision for loan losses | 25,797 | 24,338 | 77,427 | 71,892 | ||||||||||||
Noninterest income: | ||||||||||||||||
Wealth management revenues | 8,902 | 8,374 | 26,249 | 24,969 | ||||||||||||
Merchant processing fees | — | — | — | 1,291 | ||||||||||||
Net gains on loan sales and commissions on loans originated for others | 1,963 | 1,742 | 7,296 | 4,688 | ||||||||||||
Service charges on deposit accounts | 986 | 881 | 2,894 | 2,459 | ||||||||||||
Card interchange fees | 849 | 804 | 2,389 | 2,264 | ||||||||||||
Income from bank-owned life insurance | 498 | 468 | 1,480 | 1,354 | ||||||||||||
Loan related derivative income | 327 | 339 | 1,689 | 562 | ||||||||||||
Equity in earnings (losses) of unconsolidated subsidiaries | (69 | ) | (63 | ) | (224 | ) | (213 | ) | ||||||||
Gain on sale of business line | — | — | — | 6,265 | ||||||||||||
Other income | 457 | 580 | 1,421 | 1,670 | ||||||||||||
Total noninterest income | 13,913 | 13,125 | 43,194 | 45,309 | ||||||||||||
Noninterest expense: | ||||||||||||||||
Salaries and employee benefits | 15,971 | 14,516 | 46,971 | 43,845 | ||||||||||||
Net occupancy | 1,721 | 1,557 | 5,276 | 4,672 | ||||||||||||
Equipment | 1,424 | 1,211 | 4,140 | 3,682 | ||||||||||||
Merchant processing costs | — | — | — | 1,050 | ||||||||||||
Outsourced services | 1,250 | 1,138 | 3,774 | 3,197 | ||||||||||||
Legal, audit and professional fees | 630 | 494 | 1,916 | 1,710 | ||||||||||||
FDIC deposit insurance costs | 467 | 442 | 1,376 | 1,295 | ||||||||||||
Advertising and promotion | 356 | 368 | 1,201 | 1,140 | ||||||||||||
Amortization of intangibles | 260 | 161 | 571 | 489 | ||||||||||||
Debt prepayment penalties | — | — | — | 6,294 | ||||||||||||
Other expenses | 2,459 | 2,160 | 7,143 | 6,413 | ||||||||||||
Total noninterest expense | 24,538 | 22,047 | 72,368 | 73,787 | ||||||||||||
Income before income taxes | 15,172 | 15,416 | 48,253 | 43,414 | ||||||||||||
Income tax expense | 4,964 | 4,878 | 15,532 | 13,781 | ||||||||||||
Net income | $10,208 | $10,538 | $32,721 | $29,633 | ||||||||||||
Weighted average common shares outstanding - basic | 16,939 | 16,714 | 16,837 | 16,673 | ||||||||||||
Weighted average common shares outstanding - diluted | 17,102 | 16,855 | 17,027 | 16,832 | ||||||||||||
Per share information: | Basic earnings per common share | $0.60 | $0.63 | $1.94 | $1.77 | |||||||||||
Diluted earnings per common share | $0.60 | $0.62 | $1.92 | $1.75 | ||||||||||||
Cash dividends declared per share | $0.34 | $0.32 | $1.02 | $0.90 | ||||||||||||
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) | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | ||||||||||||||
Financial Data: | |||||||||||||||||||
Total assets | $3,674,836 | $3,644,477 | $3,602,514 | $3,586,874 | $3,415,882 | ||||||||||||||
Total loans | 2,949,918 | 2,928,584 | 2,880,592 | 2,859,276 | 2,674,047 | ||||||||||||||
Total securities | 344,935 | 373,901 | 364,967 | 382,884 | 402,553 | ||||||||||||||
Total deposits | 2,836,280 | 2,739,119 | 2,783,143 | 2,754,818 | 2,738,888 | ||||||||||||||
Total shareholders' equity | 370,527 | 359,167 | 353,879 | 346,279 | 348,562 | ||||||||||||||
Net interest income | 25,997 | 26,028 | 25,702 | 26,263 | 24,938 | ||||||||||||||
Provision for loan losses | 200 | 100 | — | 500 | 600 | ||||||||||||||
Noninterest income | 13,913 | 15,261 | 14,020 | 13,706 | 13,125 | ||||||||||||||
Noninterest expense | 24,538 | 24,299 | 23,531 | 23,060 | 22,047 | ||||||||||||||
Income tax expense | 4,964 | 5,387 | 5,181 | 5,218 | 4,878 | ||||||||||||||
Net income | 10,208 | 11,503 | 11,010 | 11,191 | 10,538 | ||||||||||||||
Share Data: | |||||||||||||||||||
Basic earnings per common share | $0.60 | $0.68 | $0.65 | $0.67 | $0.63 | ||||||||||||||
Diluted earnings per common share | $0.60 | $0.68 | $0.65 | $0.66 | $0.62 | ||||||||||||||
Dividends declared per share | $0.34 | $0.34 | $0.34 | $0.32 | $0.32 | ||||||||||||||
Book value per share | $21.82 | $21.34 | $21.10 | $20.68 | $20.85 | ||||||||||||||
Tangible book value per share - Non-GAAP (1) | $17.36 | $17.61 | $17.35 | $16.92 | $17.07 | ||||||||||||||
Market value per share | $38.45 | $39.48 | $38.19 | $40.18 | $32.99 | ||||||||||||||
Shares outstanding at end of period | 16,985 | 16,834 | 16,773 | 16,746 | 16,721 | ||||||||||||||
Weighted average common shares outstanding - basic | 16,939 | 16,811 | 16,759 | 16,735 | 16,714 | ||||||||||||||
Weighted average common shares outstanding - diluted | 17,102 | 16,989 | 16,939 | 16,911 | 16,855 | ||||||||||||||
Key Ratios: | |||||||||||||||||||
Return on average assets | 1.11 | % | 1.27 | % | 1.23 | % | 1.27 | % | 1.25 | % | |||||||||
Return on average tangible assets - Non-GAAP (1) | 1.13 | % | 1.29 | % | 1.25 | % | 1.29 | % | 1.27 | % | |||||||||
Return on average equity | 11.13 | % | 12.88 | % | 12.54 | % | 12.68 | % | 12.15 | % | |||||||||
Return on average tangible equity - Non-GAAP (1) | 13.82 | % | 15.62 | % | 15.27 | % | 15.44 | % | 14.86 | % | |||||||||
Tier 1 risk-based capital | 11.83% (i) | 11.79 | % | 11.78 | % | 11.52 | % | 12.15 | % | ||||||||||
Total risk-based capital | 12.80% (i) | 12.78 | % | 12.80 | % | 12.56 | % | 13.26 | % | ||||||||||
Tier 1 leverage ratio | 9.25% (i) | 9.31 | % | 9.21 | % | 9.14 | % | 9.35 | % | ||||||||||
Tier 1 common equity (2) | 11.05% (i) | 11.00 | % | 10.98 | % | N/A | N/A | ||||||||||||
Equity to assets | 10.08 | % | 9.86 | % | 9.82 | % | 9.65 | % | 10.20 | % | |||||||||
Tangible equity to tangible assets - Non-GAAP (1) | 8.19 | % | 8.28 | % | 8.22 | % | 8.04 | % | 8.51 | % | |||||||||
(i) - estimated | |||||||||||||||||||
Wealth Management Revenues: | |||||||||||||||||||
Trust and investment management fees | $7,768 | $7,238 | $7,142 | $7,059 | $6,982 | ||||||||||||||
Mutual fund fees | 989 | 1,032 | 1,036 | 1,068 | 1,100 | ||||||||||||||
Asset-based revenues | 8,757 | 8,270 | 8,178 | 8,127 | 8,082 | ||||||||||||||
Transaction-based revenues | 145 | 642 | 257 | 282 | 292 | ||||||||||||||
Total wealth management revenues | $8,902 | $8,912 | $8,435 | $8,409 | $8,374 | ||||||||||||||
Wealth Management Assets Under Administration: | |||||||||||||||||||
Balance at beginning of period | $5,211,548 | $5,159,663 | $5,069,966 | $4,983,464 | $5,010,588 | ||||||||||||||
Acquisition of Halsey Associates, Inc. (Aug. 1, 2015) | 839,994 | — | — | — | — | ||||||||||||||
Net investment appreciation (depreciation) & income | (316,121 | ) | (13,932 | ) | 80,872 | 111,715 | (29,199 | ) | |||||||||||
Net client cash flows | (21,220 | ) | 65,817 | 8,825 | (25,213 | ) | 2,075 | ||||||||||||
Balance at end of period | $5,714,201 | $5,211,548 | $5,159,663 | $5,069,966 | $4,983,464 | ||||||||||||||
(1) | See the section labeled “Supplemental Information - Non-GAAP Financial Measures” at the end of this document. |
(2) | New capital ratio effective January 1, 2015 under the Basel III capital requirements. |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||
SELECTED FINANCIAL HIGHLIGHTS (unaudited) | |||||||
Nine Months Ended | |||||||
(Dollars in thousands) | Sep 30, 2015 | Sep 30, 2014 | |||||
Key Ratios: | |||||||
Return on average assets | 1.20 | % | 1.21 | % | |||
Return on average tangible assets - Non-GAAP (1) | 1.22 | % | 1.24 | % | |||
Return on average equity | 12.17 | % | 11.60 | % | |||
Return on average tangible equity - Non-GAAP (1) | 14.90 | % | 14.24 | % | |||
Allowance for Loan Losses: | |||||||
Balance at beginning of period | $28,023 | $27,886 | |||||
Provision charged to earnings | 300 | 1,350 | |||||
Charge-offs | (1,401 | ) | (1,638 | ) | |||
Recoveries | 239 | 170 | |||||
Balance at end of period | $27,161 | $27,768 | |||||
Net Loan Charge-Offs (Recoveries): | |||||||
Commercial mortgages | $312 | $958 | |||||
Commercial & industrial | 367 | 328 | |||||
Residential real estate mortgages | 62 | 36 | |||||
Consumer | 421 | 146 | |||||
Total | $1,162 | $1,468 | |||||
Net charge-offs to average loans (annualized) | 0.05 | % | 0.08 | % | |||
Wealth Management Revenues: | |||||||
Trust and investment management fees | $22,148 | $20,495 | |||||
Mutual fund fees | 3,057 | 3,267 | |||||
Asset-based revenues | 25,205 | 23,762 | |||||
Transaction-based revenues | 1,044 | 1,207 | |||||
Total wealth management revenues | $26,249 | $24,969 | |||||
Wealth Management Assets Under Administration: | |||||||
Balance at beginning of period | $5,069,966 | $4,781,958 | |||||
Acquisition of Halsey Associates, Inc. (Aug. 1, 2015) | 839,994 | — | |||||
Net investment appreciation & income | (249,181 | ) | 146,405 | ||||
Net client cash flows | 53,422 | 55,101 | |||||
Balance at end of period | $5,714,201 | $4,983,464 | |||||
(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 | ||||||||||||||
Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | ||||||||||
Average Yield / Rate (taxable equivalent basis): | ||||||||||||||
Assets: | ||||||||||||||
Commercial loans | 3.91 | % | 4.06 | % | 4.02 | % | 4.23 | % | 4.20 | % | ||||
Residential real estate loans, including mortgage loans held for sale | 3.90 | % | 3.95 | % | 4.06 | % | 4.06 | % | 4.06 | % | ||||
Consumer loans | 3.79 | % | 3.77 | % | 3.82 | % | 3.79 | % | 3.83 | % | ||||
Total loans | 3.89 | % | 3.99 | % | 4.01 | % | 4.12 | % | 4.10 | % | ||||
Cash, federal funds sold and other short-term investments | 0.21 | % | 0.18 | % | 0.20 | % | 0.18 | % | 0.19 | % | ||||
FHLBB stock | 3.25 | % | 1.74 | % | 1.77 | % | 1.48 | % | 1.47 | % | ||||
Taxable debt securities | 2.73 | % | 2.72 | % | 2.84 | % | 2.83 | % | 2.94 | % | ||||
Nontaxable debt securities | 5.95 | % | 6.15 | % | 6.03 | % | 5.87 | % | 5.86 | % | ||||
Total securities | 3.08 | % | 3.11 | % | 3.23 | % | 3.22 | % | 3.36 | % | ||||
Total interest-earning assets | 3.70 | % | 3.80 | % | 3.84 | % | 3.91 | % | 3.89 | % | ||||
Liabilities: | ||||||||||||||
Interest-bearing demand deposits | 0.07 | % | 0.03 | % | 0.09 | % | — | % | — | % | ||||
NOW accounts | 0.06 | % | 0.06 | % | 0.06 | % | 0.06 | % | 0.06 | % | ||||
Money market accounts | 0.46 | % | 0.46 | % | 0.45 | % | 0.43 | % | 0.41 | % | ||||
Savings accounts | 0.07 | % | 0.07 | % | 0.06 | % | 0.06 | % | 0.06 | % | ||||
Time deposits (in-market) | 0.98 | % | 1.00 | % | 1.05 | % | 1.14 | % | 1.17 | % | ||||
Wholesale brokered time deposits | 1.29 | % | 1.28 | % | 1.29 | % | 1.23 | % | 1.09 | % | ||||
FHLBB advances | 1.85 | % | 1.94 | % | 1.91 | % | 2.28 | % | 2.57 | % | ||||
Junior subordinated debentures | 4.06 | % | 4.26 | % | 4.31 | % | 4.22 | % | 4.22 | % | ||||
Other | 7.63 | % | 6.92 | % | 9.51 | % | 8.50 | % | 7.88 | % | ||||
Total interest-bearing liabilities | 0.79 | % | 0.79 | % | 0.82 | % | 0.84 | % | 0.84 | % | ||||
Interest rate spread (taxable equivalent basis) | 2.91 | % | 3.01 | % | 3.02 | % | 3.07 | % | 3.05 | % | ||||
Net interest margin (taxable equivalent basis) | 3.07 | % | 3.15 | % | 3.18 | % | 3.23 | % | 3.21 | % | ||||
At September 30, 2015 | ||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||
(Dollars in thousands) | Cost | Gains | Losses | Value | ||||||||||||
Securities Available for Sale: | ||||||||||||||||
Obligations of U.S. government-sponsored enterprises | $52,430 | $220 | ($7 | ) | $52,643 | |||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | 197,790 | 8,498 | — | 206,288 | ||||||||||||
Obligations of states and political subdivisions | 36,775 | 982 | — | 37,757 | ||||||||||||
Individual name issuer trust preferred debt securities | 29,806 | — | (4,123 | ) | 25,683 | |||||||||||
Corporate bonds | 1,418 | 8 | (2 | ) | 1,424 | |||||||||||
Total securities available for sale | 318,219 | 9,708 | (4,132 | ) | 323,795 | |||||||||||
Held to Maturity: | ||||||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | 21,140 | 680 | — | 21,820 | ||||||||||||
Total securities held to maturity | 21,140 | 680 | — | 21,820 | ||||||||||||
Total securities | $339,359 | $10,388 | ($4,132 | ) | $345,615 | |||||||||||
Washington Trust Bancorp, Inc. and Subsidiaries | ||||||||||||||||||||
SELECTED FINANCIAL HIGHLIGHTS (unaudited) | ||||||||||||||||||||
Period End Balances At | ||||||||||||||||||||
(Dollars in thousands) | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | |||||||||||||||
Loans: | ||||||||||||||||||||
Commercial: | Mortgages | $873,767 | $876,589 | $865,042 | $843,978 | $766,703 | ||||||||||||||
Construction & development | 121,857 | 110,989 | 89,851 | 79,592 | 58,750 | |||||||||||||||
Commercial & industrial | 584,230 | 595,959 | 604,630 | 611,918 | 564,920 | |||||||||||||||
Total commercial | 1,579,854 | 1,583,537 | 1,559,523 | 1,535,488 | 1,390,373 | |||||||||||||||
Residential real estate: | Mortgages | 994,808 | 971,705 | 954,905 | 948,731 | 912,956 | ||||||||||||||
Homeowner construction | 29,406 | 29,558 | 32,659 | 36,684 | 32,624 | |||||||||||||||
Total residential real estate | 1,024,214 | 1,001,263 | 987,564 | 985,415 | 945,580 | |||||||||||||||
Consumer: | Home equity lines | 252,862 | 249,845 | 239,537 | 242,480 | 240,567 | ||||||||||||||
Home equity loans | 47,610 | 47,437 | 46,727 | 46,967 | 46,455 | |||||||||||||||
Other | 45,378 | 46,502 | 47,241 | 48,926 | 51,072 | |||||||||||||||
Total consumer | 345,850 | 343,784 | 333,505 | 338,373 | 338,094 | |||||||||||||||
Total loans | $2,949,918 | $2,928,584 | $2,880,592 | $2,859,276 | $2,674,047 | |||||||||||||||
At September 30, 2015 | ||||||
(Dollars in thousands) | Balance | % of Total | ||||
Commercial Real Estate Loans by Property Location: | ||||||
Rhode Island, Connecticut, Massachusetts | $919,473 | 92.4 | % | |||
New York, New Jersey, Pennsylvania | 62,678 | 6.3 | % | |||
New Hampshire | 13,473 | 1.3 | % | |||
Total commercial real estate loans (1) | $995,624 | 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 September 30, 2015 | ||||||
(Dollars in thousands) | Balance | % of Total | ||||
Residential Mortgages by Property Location: | ||||||
Rhode Island, Connecticut, Massachusetts | $1,005,610 | 98.1 | % | |||
New Hampshire | 10,867 | 1.1 | % | |||
New York, Virginia, New Jersey, Maryland, Pennsylvania | 4,200 | 0.4 | % | |||
Ohio | 1,622 | 0.2 | % | |||
Other | 1,915 | 0.2 | % | |||
Total residential mortgages | $1,024,214 | 100.0 | % | |||
Period End Balances At | ||||||||||||||||||||
(Dollars in thousands) | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | |||||||||||||||
Deposits: | ||||||||||||||||||||
Demand deposits | $513,856 | $457,755 | $477,046 | $459,852 | $476,808 | |||||||||||||||
NOW accounts | 358,973 | 357,922 | 333,321 | 326,375 | 313,391 | |||||||||||||||
Money market accounts | 855,858 | 789,334 | 821,353 | 802,764 | 833,318 | |||||||||||||||
Savings accounts | 305,775 | 300,108 | 298,802 | 291,725 | 290,561 | |||||||||||||||
Time deposits | 801,818 | 834,000 | 852,621 | 874,102 | 824,810 | |||||||||||||||
Total deposits | $2,836,280 | $2,739,119 | $2,783,143 | $2,754,818 | $2,738,888 | |||||||||||||||
Out-of-market brokered certificates of deposits included in time deposits | $267,552 | $284,590 | $290,863 | $299,129 | $211,222 | |||||||||||||||
In-market deposits, excluding out-of-market brokered certificates of deposit | $2,568,728 | $2,454,529 | $2,492,280 | $2,455,689 | $2,527,666 | |||||||||||||||
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||||
SELECTED FINANCIAL HIGHLIGHTS (unaudited) | |||||||||||||||||||
Period End Balances At | |||||||||||||||||||
(Dollars in thousands) | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | ||||||||||||||
Asset Quality Ratios: | |||||||||||||||||||
Total past due loans to total loans | 0.74 | % | 0.82 | % | 0.66 | % | 0.63 | % | 0.75 | % | |||||||||
Nonperforming assets to total assets | 0.48 | % | 0.45 | % | 0.48 | % | 0.48 | % | 0.53 | % | |||||||||
Nonaccrual loans to total loans | 0.57 | % | 0.52 | % | 0.55 | % | 0.56 | % | 0.63 | % | |||||||||
Allowance for loan losses to nonaccrual loans | 161.25 | % | 182.32 | % | 175.29 | % | 175.75 | % | 163.68 | % | |||||||||
Allowance for loan losses to total loans | 0.92 | % | 0.94 | % | 0.97 | % | 0.98 | % | 1.04 | % | |||||||||
Nonperforming Assets: | |||||||||||||||||||
Commercial mortgages | $4,915 | $4,915 | $5,115 | $5,315 | $6,022 | ||||||||||||||
Commercial construction & development | — | — | — | — | — | ||||||||||||||
Commercial & industrial | 1,137 | 1,039 | 2,193 | 1,969 | 1,326 | ||||||||||||||
Residential real estate mortgages | 9,472 | 7,411 | 6,956 | 7,124 | 7,890 | ||||||||||||||
Consumer | 1,320 | 1,766 | 1,601 | 1,537 | 1,727 | ||||||||||||||
Total nonaccrual loans | 16,844 | 15,131 | 15,865 | 15,945 | 16,965 | ||||||||||||||
Nonaccrual investment securities | — | — | — | — | — | ||||||||||||||
Property acquired through foreclosure or repossession | 955 | 1,388 | 1,398 | 1,176 | 988 | ||||||||||||||
Total nonperforming assets | $17,799 | $16,519 | $17,263 | $17,121 | $17,953 | ||||||||||||||
Troubled Debt Restructured Loans: | |||||||||||||||||||
Accruing troubled debt restructured loans: | |||||||||||||||||||
Commercial mortgages | $10,637 | $9,448 | $9,448 | $9,676 | $9,677 | ||||||||||||||
Commercial & industrial | 2,069 | 2,209 | 881 | 954 | 1,036 | ||||||||||||||
Residential real estate mortgages | 674 | 679 | 684 | 1,252 | 1,258 | ||||||||||||||
Consumer | 232 | 201 | 134 | 135 | 164 | ||||||||||||||
Accruing troubled debt restructured loans | 13,612 | 12,537 | 11,147 | 12,017 | 12,135 | ||||||||||||||
Nonaccrual troubled debt restructured loans: | |||||||||||||||||||
Commercial mortgages | 4,498 | 4,498 | 4,698 | 4,898 | 4,898 | ||||||||||||||
Commercial & industrial | 380 | 381 | 1,442 | 1,193 | 854 | ||||||||||||||
Residential real estate mortgages | 613 | 92 | 338 | 248 | 441 | ||||||||||||||
Consumer | — | 33 | 34 | — | — | ||||||||||||||
Nonaccrual troubled debt restructured loans | 5,491 | 5,004 | 6,512 | 6,339 | 6,193 | ||||||||||||||
Total troubled debt restructured loans | $19,103 | $17,541 | $17,659 | $18,356 | $18,328 | ||||||||||||||
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||||
SELECTED FINANCIAL HIGHLIGHTS (unaudited) | |||||||||||||||||||
Period End Balances At | |||||||||||||||||||
(Dollars in thousands) | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | ||||||||||||||
Past Due Loans: | |||||||||||||||||||
Loans 30-59 Days Past Due: | |||||||||||||||||||
Commercial mortgages | $147 | $14 | $497 | $— | $— | ||||||||||||||
Commercial & industrial | 162 | 2,581 | 229 | 2,136 | 1,129 | ||||||||||||||
Residential real estate mortgages | 3,610 | 5,120 | 4,470 | 2,943 | 2,582 | ||||||||||||||
Consumer loans | 899 | 1,634 | 1,512 | 954 | 1,677 | ||||||||||||||
Loans 30-59 days past due | $4,818 | $9,349 | $6,708 | $6,033 | $5,388 | ||||||||||||||
Loans 60-89 Days Past Due: | |||||||||||||||||||
Commercial mortgages | $— | $— | $61 | $— | $— | ||||||||||||||
Commercial & industrial | 3,455 | 2,299 | 229 | 1,202 | 314 | ||||||||||||||
Residential real estate mortgages | 2,458 | 913 | 1,352 | 821 | 2,001 | ||||||||||||||
Consumer loans | 338 | 397 | 565 | 345 | 356 | ||||||||||||||
Loans 60-89 days past due | $6,251 | $3,609 | $2,207 | $2,368 | $2,671 | ||||||||||||||
Loans 90 Days or More Past Due: | |||||||||||||||||||
Commercial mortgages | $4,915 | $4,915 | $5,115 | $5,315 | $5,995 | ||||||||||||||
Commercial & industrial | 720 | 638 | 721 | 181 | 970 | ||||||||||||||
Residential real estate mortgages | 4,499 | 4,871 | 3,607 | 3,284 | 3,922 | ||||||||||||||
Consumer loans | 608 | 647 | 723 | 897 | 989 | ||||||||||||||
Loans 90 days or more past due | $10,742 | $11,071 | $10,166 | $9,677 | $11,876 | ||||||||||||||
Total Past Due Loans: | |||||||||||||||||||
Commercial mortgages | $5,062 | $4,929 | $5,673 | $5,315 | $5,995 | ||||||||||||||
Commercial & industrial | 4,337 | 5,518 | 1,179 | 3,519 | 2,413 | ||||||||||||||
Residential real estate mortgages | 10,567 | 10,904 | 9,429 | 7,048 | 8,505 | ||||||||||||||
Consumer loans | 1,845 | 2,678 | 2,800 | 2,196 | 3,022 | ||||||||||||||
Total past due loans | $21,811 | $24,029 | $19,081 | $18,078 | $19,935 | ||||||||||||||
Accruing loans 90 days or more past due | $— | $— | $— | $— | $— | ||||||||||||||
Nonaccrual loans included in past due loans | $13,964 | $12,397 | $12,314 | $12,721 | $14,364 | ||||||||||||||
For the Quarters Ended | |||||||||||||||||||
(Dollars in thousands) | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | ||||||||||||||
Allowance for Loan Losses: | |||||||||||||||||||
Balance at beginning of period | $27,587 | $27,810 | $28,023 | $27,768 | $27,269 | ||||||||||||||
Provision charged to earnings | 200 | 100 | — | 500 | 600 | ||||||||||||||
Charge-offs | (725 | ) | (355 | ) | (321 | ) | (311 | ) | (148 | ) | |||||||||
Recoveries | 99 | 32 | 108 | 66 | 47 | ||||||||||||||
Balance at end of period | $27,161 | $27,587 | $27,810 | $28,023 | $27,768 | ||||||||||||||
Net Loan Charge-Offs (Recoveries): | |||||||||||||||||||
Commercial mortgages | ($4 | ) | $196 | $120 | ($5 | ) | ($7 | ) | |||||||||||
Commercial & industrial | 348 | 26 | (7 | ) | 144 | 63 | |||||||||||||
Residential real estate mortgages | 12 | 4 | 46 | 45 | (1 | ) | |||||||||||||
Consumer | 270 | 97 | 54 | 61 | 46 | ||||||||||||||
Total | $626 | $323 | $213 | $245 | $101 | ||||||||||||||
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 | |||||||||||||||||||||||||||
September 30, 2015 | June 30, 2015 | September 30, 2014 | |||||||||||||||||||||||||
Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||
Commercial loans | $1,571,645 | $15,475 | 3.91 | % | $1,574,183 | $15,930 | 4.06 | % | $1,380,229 | $14,624 | 4.20 | % | |||||||||||||||
Residential real estate loans, including loans held for sale | 1,050,949 | 10,329 | 3.90 | % | 1,025,029 | 10,102 | 3.95 | % | 946,738 | 9,685 | 4.06 | % | |||||||||||||||
Consumer loans | 343,603 | 3,283 | 3.79 | % | 338,809 | 3,183 | 3.77 | % | 337,598 | 3,259 | 3.83 | % | |||||||||||||||
Total loans | 2,966,197 | 29,087 | 3.89 | % | 2,938,021 | 29,215 | 3.99 | % | 2,664,565 | 27,568 | 4.10 | % | |||||||||||||||
Cash, federal funds sold and short-term investments | 89,280 | 47 | 0.21 | % | 63,858 | 29 | 0.18 | % | 74,569 | 36 | 0.19 | % | |||||||||||||||
FHLBB stock | 37,730 | 309 | 3.25 | % | 37,730 | 164 | 1.74 | % | 37,730 | 140 | 1.47 | % | |||||||||||||||
Taxable debt securities | 316,214 | 2,178 | 2.73 | % | 320,643 | 2,176 | 2.72 | % | 323,140 | 2,397 | 2.94 | % | |||||||||||||||
Nontaxable debt securities | 37,780 | 567 | 5.95 | % | 40,886 | 627 | 6.15 | % | 53,374 | 789 | 5.86 | % | |||||||||||||||
Total securities | 353,994 | 2,745 | 3.08 | % | 361,529 | 2,803 | 3.11 | % | 376,514 | 3,186 | 3.36 | % | |||||||||||||||
Total interest-earning assets | 3,447,201 | 32,188 | 3.70 | % | 3,401,138 | 32,211 | 3.80 | % | 3,153,378 | 30,930 | 3.89 | % | |||||||||||||||
Noninterest-earning assets | 231,286 | 221,577 | 216,945 | ||||||||||||||||||||||||
Total assets | $3,678,487 | $3,622,715 | $3,370,323 | ||||||||||||||||||||||||
Liabilities and Shareholders' Equity: | |||||||||||||||||||||||||||
Interest-bearing demand deposits | $30,392 | $5 | 0.07 | % | $38,129 | $3 | 0.03 | % | $12,862 | $— | — | % | |||||||||||||||
NOW accounts | 357,128 | 53 | 0.06 | % | 363,434 | 53 | 0.06 | % | 311,077 | 47 | 0.06 | % | |||||||||||||||
Money market accounts | 820,597 | 951 | 0.46 | % | 820,887 | 941 | 0.46 | % | 798,273 | 830 | 0.41 | % | |||||||||||||||
Savings accounts | 303,587 | 52 | 0.07 | % | 298,286 | 50 | 0.07 | % | 291,386 | 46 | 0.06 | % | |||||||||||||||
Time deposits (in-market) | 541,486 | 1,338 | 0.98 | % | 554,839 | 1,390 | 1.00 | % | 623,221 | 1,832 | 1.17 | % | |||||||||||||||
Wholesale brokered time deposits | 279,839 | 909 | 1.29 | % | 285,844 | 911 | 1.28 | % | 204,046 | 562 | 1.09 | % | |||||||||||||||
FHLBB advances | 425,931 | 1,987 | 1.85 | % | 391,152 | 1,891 | 1.94 | % | 283,219 | 1,832 | 2.57 | % | |||||||||||||||
Junior subordinated debentures | 22,681 | 232 | 4.06 | % | 22,681 | 241 | 4.26 | % | 22,681 | 241 | 4.22 | % | |||||||||||||||
Other | 104 | 2 | 7.63 | % | 116 | 2 | 6.92 | % | 151 | 3 | 7.88 | % | |||||||||||||||
Total interest-bearing liabilities | 2,781,745 | 5,529 | 0.79 | % | 2,775,368 | 5,482 | 0.79 | % | 2,546,916 | 5,393 | 0.84 | % | |||||||||||||||
Demand deposits | 477,393 | 441,355 | 439,353 | ||||||||||||||||||||||||
Other liabilities | 52,625 | 48,627 | 37,217 | ||||||||||||||||||||||||
Shareholders' equity | 366,724 | 357,365 | 346,837 | ||||||||||||||||||||||||
Total liabilities and shareholders' equity | $3,678,487 | $3,622,715 | $3,370,323 | ||||||||||||||||||||||||
Net interest income (FTE) | $26,659 | $26,729 | $25,537 | ||||||||||||||||||||||||
Interest rate spread | 2.91 | % | 3.01 | % | 3.05 | % | |||||||||||||||||||||
Net interest margin | 3.07 | % | 3.15 | % | 3.21 | % | |||||||||||||||||||||
Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:
(Dollars in thousands) | Three Months Ended | ||||||||||
Sep 30, 2015 | Jun 30, 2015 | Sep 30, 2014 | |||||||||
Commercial loans | $461 | $476 | $329 | ||||||||
Nontaxable debt securities | 201 | 225 | 270 | ||||||||
Total | $662 | $701 | $599 | ||||||||
Washington Trust Bancorp, Inc. and Subsidiaries | ||||||||||||||||||
CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited) | ||||||||||||||||||
Nine Months Ended | ||||||||||||||||||
September 30, 2015 | September 30, 2014 | |||||||||||||||||
Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | |||||||||||||
(Dollars in thousands) | ||||||||||||||||||
Assets: | ||||||||||||||||||
Commercial loans | $1,563,615 | $46,717 | 3.99 | % | $1,352,271 | $43,733 | 4.32 | % | ||||||||||
Residential real estate loans, including loans held for sale | 1,035,408 | 30,745 | 3.97 | % | 869,230 | 26,704 | 4.11 | % | ||||||||||
Consumer loans | 339,608 | 9,634 | 3.79 | % | 333,127 | 9,527 | 3.82 | % | ||||||||||
Total loans | 2,938,631 | 87,096 | 3.96 | % | 2,554,628 | 79,964 | 4.19 | % | ||||||||||
Cash, federal funds sold and short-term investments | 68,205 | 101 | 0.20 | % | 65,486 | 99 | 0.20 | % | ||||||||||
FHLBB stock | 37,730 | 638 | 2.26 | % | 37,730 | 420 | 1.49 | % | ||||||||||
Taxable debt securities | 319,786 | 6,613 | 2.76 | % | 329,779 | 8,038 | 3.26 | % | ||||||||||
Nontaxable debt securities | 41,083 | 1,858 | 6.05 | % | 56,894 | 2,520 | 5.92 | % | ||||||||||
Total securities | 360,869 | 8,471 | 3.14 | % | 386,673 | 10,558 | 3.65 | % | ||||||||||
Total interest-earning assets | 3,405,435 | 96,306 | 3.78 | % | 3,044,517 | 91,041 | 4.00 | % | ||||||||||
Noninterest-earning assets | 224,921 | 209,286 | ||||||||||||||||
Total assets | $3,630,356 | $3,253,803 | ||||||||||||||||
Liabilities and Shareholders' Equity: | ||||||||||||||||||
Interest-bearing demand deposits | $35,430 | $17 | 0.06 | % | $10,906 | $— | — | % | ||||||||||
NOW accounts | 350,151 | 153 | 0.06 | % | 309,101 | 141 | 0.06 | % | ||||||||||
Money market accounts | 813,915 | 2,775 | 0.46 | % | 748,121 | 2,152 | 0.38 | % | ||||||||||
Savings accounts | 298,635 | 148 | 0.07 | % | 291,949 | 136 | 0.06 | % | ||||||||||
Time deposits (in-market) | 554,369 | 4,198 | 1.01 | % | 649,166 | 5,645 | 1.16 | % | ||||||||||
Wholesale brokered time deposits | 286,728 | 2,754 | 1.28 | % | 163,705 | 1,332 | 1.09 | % | ||||||||||
FHLBB advances | 407,363 | 5,780 | 1.90 | % | 257,814 | 5,831 | 3.02 | % | ||||||||||
Junior subordinated debentures | 22,681 | 714 | 4.21 | % | 22,681 | 723 | 4.26 | % | ||||||||||
Other | 116 | 7 | 8.07 | % | 162 | 10 | 8.25 | % | ||||||||||
Total interest-bearing liabilities | 2,769,388 | 16,546 | 0.80 | % | 2,453,605 | 15,970 | 0.87 | % | ||||||||||
Demand deposits | 452,691 | 424,120 | ||||||||||||||||
Other liabilities | 49,786 | 35,335 | ||||||||||||||||
Shareholders' equity | 358,491 | 340,743 | ||||||||||||||||
Total liabilities and shareholders' equity | $3,630,356 | $3,253,803 | ||||||||||||||||
Net interest income (FTE) | $79,760 | $75,071 | ||||||||||||||||
Interest rate spread | 2.98 | % | 3.13 | % | ||||||||||||||
Net interest margin | 3.13 | % | 3.30 | % | ||||||||||||||
(Dollars in thousands) | Nine Months Ended | ||||||
Sep 30, 2015 | Sep 30, 2014 | ||||||
Commercial loans | $1,378 | $967 | |||||
Nontaxable debt securities | 655 | 862 | |||||
Total | $2,033 | $1,829 | |||||
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) | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | ||||||||||||||
Calculation of Tangible Book Value per Share: | |||||||||||||||||||
Total shareholders' equity at end of period | $370,527 | $359,167 | $353,879 | $346,279 | $348,562 | ||||||||||||||
Less: | |||||||||||||||||||
Goodwill | 64,803 | 58,114 | 58,114 | 58,114 | 58,114 | ||||||||||||||
Identifiable intangible assets, net | 10,832 | 4,539 | 4,694 | 4,849 | 5,004 | ||||||||||||||
Total tangible shareholders' equity at end of period | $294,892 | $296,514 | $291,071 | $283,316 | $285,444 | ||||||||||||||
Shares outstanding at end of period | 16,985 | 16,834 | 16,773 | 16,746 | 16,721 | ||||||||||||||
Book value per share - GAAP | $21.82 | $21.34 | $21.10 | $20.68 | $20.85 | ||||||||||||||
Tangible book value per share - Non-GAAP | $17.36 | $17.61 | $17.35 | $16.92 | $17.07 | ||||||||||||||
Calculation of Tangible Equity to Tangible Assets: | |||||||||||||||||||
Total tangible shareholders' equity at end of period | $294,892 | $296,514 | $291,071 | $283,316 | $285,444 | ||||||||||||||
Total assets at end of period | $3,674,836 | $3,644,477 | $3,602,514 | $3,586,874 | $3,415,882 | ||||||||||||||
Less: | |||||||||||||||||||
Goodwill | 64,803 | 58,114 | 58,114 | 58,114 | 58,114 | ||||||||||||||
Identifiable intangible assets, net | 10,832 | 4,539 | 4,694 | 4,849 | 5,004 | ||||||||||||||
Total tangible assets at end of period | $3,599,201 | $3,581,824 | $3,539,706 | $3,523,911 | $3,352,764 | ||||||||||||||
Equity to assets - GAAP | 10.08 | % | 9.86 | % | 9.82 | % | 9.65 | % | 10.20 | % | |||||||||
Tangible equity to tangible assets - Non-GAAP | 8.19 | % | 8.28 | % | 8.22 | % | 8.04 | % | 8.51 | % | |||||||||
Calculation of Return on Average Tangible Assets: | |||||||||||||||||||
Net income | $10,208 | $11,503 | $11,010 | $11,191 | $10,538 | ||||||||||||||
Total average assets | $3,678,487 | $3,622,715 | $3,588,881 | $3,521,503 | $3,370,323 | ||||||||||||||
Less: | |||||||||||||||||||
Average goodwill | 62,524 | 58,114 | 58,114 | 58,114 | 58,114 | ||||||||||||||
Average identifiable intangible assets, net | 8,768 | 4,614 | 4,770 | 4,924 | 5,082 | ||||||||||||||
Total average tangible assets | $3,607,195 | $3,559,987 | $3,525,997 | $3,458,465 | $3,307,127 | ||||||||||||||
Return on average assets - GAAP | 1.11 | % | 1.27 | % | 1.23 | % | 1.27 | % | 1.25 | % | |||||||||
Return on average tangible assets - Non-GAAP | 1.13 | % | 1.29 | % | 1.25 | % | 1.29 | % | 1.27 | % | |||||||||
Calculation of Return on Average Tangible Equity: | |||||||||||||||||||
Net income | $10,208 | $11,503 | $11,010 | $11,191 | $10,538 | ||||||||||||||
Total average shareholders' equity | $366,724 | $357,365 | $351,215 | $352,916 | $346,837 | ||||||||||||||
Less: | |||||||||||||||||||
Average goodwill | 62,524 | 58,114 | 58,114 | 58,114 | 58,114 | ||||||||||||||
Average identifiable intangible assets, net | 8,768 | 4,614 | 4,770 | 4,924 | 5,082 | ||||||||||||||
Total average tangible shareholders' equity | $295,432 | $294,637 | $288,331 | $289,878 | $283,641 | ||||||||||||||
Return on average shareholders' equity - GAAP | 11.13 | % | 12.88 | % | 12.54 | % | 12.68 | % | 12.15 | % | |||||||||
Return on average tangible shareholders' equity - Non-GAAP | 13.82 | % | 15.62 | % | 15.27 | % | 15.44 | % | 14.86 | % | |||||||||
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||
SUPPLEMENTAL INFORMATION - Non-GAAP Financial Measures (unaudited) | |||||||
Nine Months Ended | |||||||
(Dollars in thousands) | Sep 30, 2015 | Sep 30, 2014 | |||||
Calculation of Return on Average Tangible Assets: | |||||||
Net income | $32,721 | $29,633 | |||||
Total average assets | $3,630,356 | $3,253,803 | |||||
Less: | |||||||
Average goodwill | 59,600 | 58,114 | |||||
Average identifiable intangible assets, net | 6,065 | 5,244 | |||||
Total average tangible assets | $3,564,691 | $3,190,445 | |||||
Return on average assets - GAAP | 1.20 | % | 1.21 | % | |||
Return on average tangible assets - Non-GAAP | 1.22 | % | 1.24 | % | |||
Calculation of Return on Average Tangible Equity: | |||||||
Net income | $32,721 | $29,633 | |||||
Total average shareholders' equity | $358,491 | $340,743 | |||||
Less: | |||||||
Average goodwill | 59,600 | 58,114 | |||||
Average identifiable intangible assets, net | 6,065 | 5,244 | |||||
Total average tangible shareholders' equity | $292,826 | $277,385 | |||||
Return on average shareholders' equity - GAAP | 12.17 | % | 11.60 | % | |||
Return on average tangible shareholders' equity - Non-GAAP | 14.90 | % | 14.24 | % | |||