Attached files
| file | filename |
|---|---|
| 8-K - 8-K - WASHINGTON TRUST BANCORP INC | form8-k2017q4earningsrelea.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 30, 2018
FOR IMMEDIATE RELEASE
Washington Trust Reports Fourth Quarter 2017 Earnings
WESTERLY, R.I., January 30, 2018 (GLOBE NEWSWIRE)…Washington Trust Bancorp, Inc. (Nasdaq:WASH), parent company of The Washington Trust Company, today announced fourth quarter 2017 net income of $8.0 million, or $0.46 per diluted share, compared to net income of $13.0 million, or $0.75 per diluted share, reported for the third quarter of 2017. Net income for the year ended December 31, 2017 totaled $45.9 million, or $2.64 per diluted share, compared to $46.5 million, or $2.70 per diluted share, reported for the prior year.
On December 22, 2017, the Tax Cuts and Jobs Act ("the Tax Act") was signed into law, permanently lowering the corporate federal income tax rate from 35% to 21%, effective January 1, 2018. The enactment of the Tax Act in 2017 required companies to revalue and reassess deferred tax assets and liabilities reflecting the new federal income tax rate. As a result, in the fourth quarter of 2017, Washington Trust's net deferred tax assets were written down by a non-cash charge of $6.2 million, with a corresponding increase to income tax expense. This write-down adjustment reduced fourth quarter and full-year 2017 earnings per diluted share by $0.36.
“Our fourth quarter earnings, excluding the non-cash charge associated with the enactment of the Tax Act, were very solid. We are pleased to report record levels of total loans, total deposits, and wealth management assets under administration,” stated Joseph J. MarcAurele, Washington Trust Chairman and Chief Executive Officer. “Washington Trust’s strong financial foundation, diversified revenue stream, and market footprint positions us for future growth and success in the year ahead.”
Selected highlights for fourth quarter and full-year 2017 include:
• | Full-year 2017 net interest income increased by 8% over the prior year and amounted to $120 million, a record level for Washington Trust. |
• | Total loans were $3.4 billion at December 31, 2017, up by 2% in the fourth quarter and up by 4% from a year ago. |
• | Deposits totaled $3.2 billion at December 31, 2017, up by 3% in the fourth quarter and up by 6% from a year ago. |
• | Wealth management assets grew to a record $6.7 billion at December 31, 2017. Full-year 2017 wealth management revenues amounted to an all-time high of $39.3 million, up by 5% from the prior year. |
Washington Trust
Page 2, January 30, 2018
Net Interest Income
Net interest income totaled $30.9 million for the fourth quarter of 2017, up by $830 thousand, or 3%, from the third quarter. The net interest margin was 2.95% for the fourth quarter, up by 2 basis points from the preceding quarter. Significant linked quarter changes included:
• | Average interest-earning assets were up by $79 million, reflecting growth in average loan balances. The yield on interest-earning assets for the fourth quarter was 3.70%, up by 3 basis points from the preceding quarter. |
• | Average interest-bearing liabilities increased by $54 million, with growth in average in-market deposits, partially offset by declines in average wholesale funding balances (Federal Home Loan Bank advances and wholesale brokered time deposits). The cost of interest-bearing funds was 0.93%, up by 1 basis point from the preceding quarter. |
Noninterest Income
Noninterest income amounted to $16.2 million for the fourth quarter of 2017, down by $1.1 million, or 6%, from the third quarter. Significant linked quarter changes included:
• | Wealth management revenues totaled $9.9 million in the fourth quarter of 2017, compared to $10.0 million in the preceding quarter. Full-year 2017 wealth management revenues amounted to $39.3 million, up by $1.8 million, or 5%, from the prior year, due to growth in asset-based revenues. |
Wealth management assets under administration totaled $6.7 billion at December 31, 2017, up by $127 million, or 2%, from the balance at September 30, 2017. Wealth management assets were up by $651 million, or 11%, from the balance at the end of 2016, reflecting financial market appreciation. Managed assets represented 93% of total wealth management assets at December 31, 2017.
• | Mortgage banking revenues totaled $3.1 million in the fourth quarter of 2017, up modestly from the preceding quarter. Residential mortgage loans sold to the secondary market amounted to $145 million in the fourth quarter, compared to $147 million in the preceding quarter. |
• | Loan related derivative income totaled $470 thousand in the fourth quarter of 2017, down by $982 thousand, or 68%, from the preceding quarter, due to a lower volume of commercial borrower loan related derivative transactions. Full-year 2017 loan related derivative income amounted to $3.2 million, essentially unchanged from the full-year amount recognized in 2016. |
Noninterest Expenses
Noninterest expenses amounted to $25.8 million for the fourth quarter of 2017, down by $1.0 million, or 4%, from the third quarter. The linked quarter decline in noninterest expenses was primarily due to the following:
• | A reduction to noninterest expenses of $333 thousand ($0.02 per diluted share) was recognized in the fourth quarter resulting from a nontaxable downward adjustment in the fair value of a contingent consideration liability that was initially recorded upon the completion of a 2015 acquisition. |
• | During the fourth quarter, Washington Trust received $325 thousand (after-tax $205 thousand, or $0.01 per diluted share) in settlement of a claim against another bank related to a previously disclosed dispute. This matter was the subject of a $570 thousand expense charge recognized in the third quarter. The settlement was recorded as a reduction to other |
Washington Trust
Page 3, January 30, 2018
noninterest expenses in the fourth quarter.
Excluding the aforementioned items from the third and fourth quarters, noninterest expenses were up by $228 thousand, or 1%, on a linked quarter basis, primarily due to an increase in foreclosed property costs in the fourth quarter.
Income tax expense totaled $13.2 million for the fourth quarter of 2017, reflecting an effective tax rate of 62.3%. As previously mentioned, income tax expense included the $6.2 million write-down associated with the revaluation of the Corporation's net deferred tax assets due to the Tax Act. The revaluation of our net deferred tax assets is subject to further guidance and interpretation of the Tax Act that may be issued. Excluding the non-cash write-down adjustment, the effective tax rate for the fourth quarter of 2017 would have been 33.1%, compared to 32.8% for the preceding quarter. Based on current federal and applicable state income tax statutes, the Corporation currently expects its 2018 effective tax rate to be approximately 21.5%.
Loans
Total loans amounted to $3.4 billion at December 31, 2017, up by $51 million, or 2%, from the end of the preceding quarter. Residential loan portfolio balances increased by $32 million, or 3%, from the balance at September 30, 2017. In late December 2017, $19 million of residential mortgage loans were purchased with a weighted average rate of 3.24%. These purchased loans were individually evaluated to our underwriting standards and are predominantly secured by properties in Massachusetts. The commercial loan portfolio increased by $23 million, or 1%, from the end of the preceding quarter, with growth in commercial and industrial loans and in commercial construction and development loans, partially offset by a decrease in commercial mortgage loans. The consumer loan portfolio was down by $3 million, or 1%, from the end of the third quarter.
For full-year 2017, total loans rose by $140 million, or 4%, including a 9% increase in the residential loan portfolio and a 3% increase in the commercial loan portfolio.
Investment Securities
The investment securities portfolio totaled $793 million at December 31, 2017, up by $66 million, or 9%, from the balance at September 30, 2017. During the quarter, government agency mortgage-backed debt securities and agency debt securities totaling $94 million and with a weighted average yield of 2.68% were purchased. The purchases were partially offset by routine principal pay-downs on mortgage-backed securities and a maturity of a municipal bond. Investment securities represented 18% of total assets at December 31, 2017.
Deposits and Borrowings
Total deposits amounted to $3.2 billion at December 31, 2017, up by $86 million, or 3%, from the end of the preceding quarter. Included in total deposits were wholesale brokered time deposit balances of $398 million, which decreased by $18 million from the balance at September 30, 2017. Excluding wholesale brokered time deposits, in-market deposits increased by $104 million, or 4%, from the end of the preceding quarter, with growth across all deposit categories.
Total deposits were up by $179 million, or 6%, from the balance at the end of 2016. Excluding balances of wholesale brokered time deposits, total in-market deposits were up by $193 million, or 7%, in 2017. The balances of demand deposits and NOW accounts grew by $114 million, or 11%, in 2017.
Washington Trust
Page 4, January 30, 2018
Federal Home Loan Bank advances stood at $791 million at December 31, 2017, down by $23 million, or 3%, from the balance at September 30, 2017 and down by $58 million, or 7%, from a year ago.
Asset Quality
Past due loans amounted to $20.1 million, or 0.59% of total loans, at December 31, 2017, compared to $16.4 million, or 0.49% of total loans, at September 30, 2017. The increase in past due loans was primarily due to one well-secured commercial and industrial loan becoming delinquent in the latter portion of the quarter. Total nonaccrual loans amounted to $15.2 million, or 0.45% of total loans, at December 31, 2017, down from $18.5 million, or 0.56% of total loans, at September 30, 2017.
A loan loss provision of $200 thousand was charged to earnings in the fourth quarter of 2017, compared to a loan loss provision of $1.3 million in the preceding quarter. These provisions were based on management's assessment of loss exposure, as well as loan loss allocations commensurate with changes in the loan portfolio. Net charge-offs totaled $1.0 million in the fourth quarter of 2017, compared to $654 thousand in the preceding quarter. The charge-offs recognized in the fourth quarter were largely attributable to two nonaccrual commercial mortgage relationships. The allowance for loan losses was $26.5 million, or 0.79% of total loans, at December 31, 2017, compared to $27.3 million, or 0.82% of total loans, at September 30, 2017.
Capital and Dividends
Total shareholders' equity was $413 million at December 31, 2017, compared to $414 million at September 30, 2017. Book value per share amounted to $23.99 at December 31, 2017, compared to $24.06 at September 30, 2017. The decline in shareholders' equity and book value per share reflects the impact of the $6.2 million net deferred tax asset write-down adjustment recognized in earnings due to the enactment of the Tax Act in December 2017.
Capital levels at December 31, 2017 exceeded the regulatory minimum levels to be considered well capitalized, with a total risk-based capital ratio of 12.45% at December 31, 2017, compared to 12.53% at September 30, 2017. The reduction in the total risk-based capital ratio in the fourth quarter reflects a charge of $1.9 million related to the net deferred tax asset write-down adjustment, as determined in accordance with the regulatory guidance issued on January 18, 2018.
The Board of Directors declared a quarterly dividend of 39 cents per share for the quarter ended December 31, 2017. The dividend was paid on January 12, 2018 to shareholders of record on January 2, 2018.
Conference Call
Washington Trust will host a conference call to discuss its fourth quarter results, business highlights and outlook on Wednesday, January 31, 2018 at 8:30 a.m. (Eastern Time). Individuals may dial in to the call at 1-877-407-9208. An audio replay of the call will be available, shortly after the conclusion of the call, by dialing 1-844-512-2921 and entering the Replay PIN Number 13675605; the audio replay will be available through February 10, 2018. 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 March 31, 2018.
Washington Trust
Page 5, January 30, 2018
Background
Washington Trust Bancorp, Inc. is the parent of The Washington Trust Company. Founded in 1800, Washington Trust is the oldest community bank in the nation, the largest state-chartered bank headquartered in Rhode Island and one of the Northeast's premier financial services companies. Washington Trust offers a full range of financial services, including commercial banking, mortgage banking, personal banking and wealth management and trust services through its offices located in Rhode Island, Connecticut and Massachusetts. The Corporation’s common stock trades on NASDAQ under the symbol WASH. Investor information is available on the Corporation’s web site at 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; 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; occurrences of cyberattacks, hacking and identity theft; natural disasters; and changes in the assumptions used in making such forward-looking statements. In addition, the factors described under “Risk Factors” in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2016, as updated by our Quarterly Reports on Form 10-Q and other filings submitted to the SEC, may result in these differences. You should carefully review all of these factors and you should be aware that there may be other factors that could cause these differences. These forward-looking statements were based on information, plans and estimates at the date of this report, and we assume no obligation to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes.
Supplemental Information - Explanation of Non-GAAP Financial Measures
In addition to results presented in accordance with generally accepted accounting principles (“GAAP”), this press release contains certain non-GAAP financial measures. Washington Trust's management believes that the supplemental non-GAAP information, which consists of measurements and ratios based on tangible equity and tangible assets, is utilized by regulators and market analysts to evaluate a company's financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||||||
(Unaudited; Dollars in thousands) | |||||||||||||||
Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | |||||||||||
Assets: | |||||||||||||||
Cash and due from banks | $79,853 | $128,580 | $117,608 | $111,941 | $106,185 | ||||||||||
Short-term investments | 3,070 | 2,600 | 2,324 | 2,039 | 1,612 | ||||||||||
Mortgage loans held for sale | 26,943 | 28,484 | 32,784 | 25,414 | 29,434 | ||||||||||
Securities: | |||||||||||||||
Available for sale, at fair value | 780,954 | 714,355 | 749,486 | 754,720 | 739,912 | ||||||||||
Held to maturity, at amortized cost | 12,541 | 13,241 | 13,942 | 14,721 | 15,633 | ||||||||||
Total securities | 793,495 | 727,596 | 763,428 | 769,441 | 755,545 | ||||||||||
Federal Home Loan Bank stock, at cost | 40,517 | 42,173 | 44,640 | 43,714 | 43,129 | ||||||||||
Loans: | |||||||||||||||
Commercial mortgages | 1,072,487 | 1,085,535 | 1,009,096 | 1,076,648 | 1,074,186 | ||||||||||
Commercial construction & development | 138,008 | 126,257 | 112,177 | 123,841 | 121,371 | ||||||||||
Commercial & industrial | 612,334 | 588,324 | 577,116 | 562,010 | 576,109 | ||||||||||
Residential real estate | 1,227,248 | 1,195,537 | 1,168,105 | 1,131,210 | 1,122,748 | ||||||||||
Consumer | 323,994 | 327,425 | 333,606 | 331,151 | 339,957 | ||||||||||
Total loans | 3,374,071 | 3,323,078 | 3,200,100 | 3,224,860 | 3,234,371 | ||||||||||
Less allowance for loan losses | 26,488 | 27,308 | 26,662 | 26,446 | 26,004 | ||||||||||
Net loans | 3,347,583 | 3,295,770 | 3,173,438 | 3,198,414 | 3,208,367 | ||||||||||
Premises and equipment, net | 28,333 | 28,591 | 28,508 | 28,853 | 29,020 | ||||||||||
Investment in bank-owned life insurance | 73,267 | 72,729 | 72,183 | 71,642 | 71,105 | ||||||||||
Goodwill | 63,909 | 63,909 | 63,909 | 64,059 | 64,059 | ||||||||||
Identifiable intangible assets, net | 9,140 | 9,388 | 9,642 | 9,898 | 10,175 | ||||||||||
Other assets | 63,740 | 69,410 | 67,065 | 63,348 | 62,484 | ||||||||||
Total assets | $4,529,850 | $4,469,230 | $4,375,529 | $4,388,763 | $4,381,115 | ||||||||||
Liabilities: | |||||||||||||||
Deposits: | |||||||||||||||
Demand deposits | $661,138 | $621,273 | $587,813 | $596,974 | $585,960 | ||||||||||
NOW accounts | 466,605 | 448,128 | 448,617 | 454,344 | 427,707 | ||||||||||
Money market accounts | 731,345 | 716,827 | 666,047 | 762,233 | 730,075 | ||||||||||
Savings accounts | 368,524 | 367,912 | 364,002 | 362,281 | 358,397 | ||||||||||
Time deposits | 1,015,095 | 1,002,941 | 954,710 | 939,739 | 961,613 | ||||||||||
Total deposits | 3,242,707 | 3,157,081 | 3,021,189 | 3,115,571 | 3,063,752 | ||||||||||
Federal Home Loan Bank advances | 791,356 | 814,045 | 869,733 | 798,741 | 848,930 | ||||||||||
Junior subordinated debentures | 22,681 | 22,681 | 22,681 | 22,681 | 22,681 | ||||||||||
Other liabilities | 59,822 | 61,195 | 55,884 | 53,985 | 54,948 | ||||||||||
Total liabilities | 4,116,566 | 4,055,002 | 3,969,487 | 3,990,978 | 3,990,311 | ||||||||||
Shareholders’ Equity: | |||||||||||||||
Total shareholders’ equity | 413,284 | 414,228 | 406,042 | 397,785 | 390,804 | ||||||||||
Total liabilities and shareholders’ equity | $4,529,850 | $4,469,230 | $4,375,529 | $4,388,763 | $4,381,115 | ||||||||||
-6-
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||||||
(Unaudited; Dollars in thousands, except per share amounts) | ||||||||||||||||||||||
For the Twelve Months Ended | ||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||
Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Dec 31, 2017 | Dec 31, 2016 | ||||||||||||||||
Interest income: | ||||||||||||||||||||||
Interest and fees on loans | $33,459 | $32,509 | $31,642 | $30,352 | $30,738 | $127,962 | $119,491 | |||||||||||||||
Taxable interest on securities | 4,719 | 4,655 | 4,844 | 4,709 | 3,703 | 18,927 | 11,584 | |||||||||||||||
Nontaxable interest on securities | 24 | 41 | 72 | 112 | 157 | 249 | 982 | |||||||||||||||
Dividends on Federal Home Loan Bank stock | 481 | 467 | 439 | 387 | 362 | 1,774 | 1,091 | |||||||||||||||
Other interest income | 217 | 197 | 156 | 104 | 95 | 674 | 322 | |||||||||||||||
Total interest and dividend income | 38,900 | 37,869 | 37,153 | 35,664 | 35,055 | 149,586 | 133,470 | |||||||||||||||
Interest expense: | ||||||||||||||||||||||
Deposits | 4,136 | 3,835 | 3,591 | 3,502 | 3,445 | 15,064 | 12,504 | |||||||||||||||
Federal Home Loan Bank advances | 3,708 | 3,816 | 3,509 | 3,344 | 2,886 | 14,377 | 9,992 | |||||||||||||||
Junior subordinated debentures | 167 | 159 | 149 | 138 | 135 | 613 | 491 | |||||||||||||||
Other interest expense | — | — | — | 1 | 1 | 1 | 5 | |||||||||||||||
Total interest expense | 8,011 | 7,810 | 7,249 | 6,985 | 6,467 | 30,055 | 22,992 | |||||||||||||||
Net interest income | 30,889 | 30,059 | 29,904 | 28,679 | 28,588 | 119,531 | 110,478 | |||||||||||||||
Provision for loan losses | 200 | 1,300 | 700 | 400 | 2,900 | 2,600 | 5,650 | |||||||||||||||
Net interest income after provision for loan losses | 30,689 | 28,759 | 29,204 | 28,279 | 25,688 | 116,931 | 104,828 | |||||||||||||||
Noninterest income: | ||||||||||||||||||||||
Wealth management revenues | 9,914 | 10,013 | 9,942 | 9,477 | 9,291 | 39,346 | 37,569 | |||||||||||||||
Mortgage banking revenues | 3,097 | 3,036 | 2,919 | 2,340 | 4,541 | 11,392 | 13,183 | |||||||||||||||
Service charges on deposit accounts | 946 | 942 | 901 | 883 | 945 | 3,672 | 3,702 | |||||||||||||||
Card interchange fees | 904 | 894 | 902 | 802 | 858 | 3,502 | 3,385 | |||||||||||||||
Income from bank-owned life insurance | 537 | 546 | 542 | 536 | 549 | 2,161 | 2,659 | |||||||||||||||
Loan related derivative income | 470 | 1,452 | 1,144 | 148 | 912 | 3,214 | 3,243 | |||||||||||||||
Other income | 342 | 400 | 456 | 324 | 224 | 1,522 | 1,388 | |||||||||||||||
Total noninterest income | 16,210 | 17,283 | 16,806 | 14,510 | 17,320 | 64,809 | 65,129 | |||||||||||||||
Noninterest expense: | ||||||||||||||||||||||
Salaries and employee benefits | 17,083 | 17,251 | 17,358 | 16,795 | 16,528 | 68,487 | 67,221 | |||||||||||||||
Net occupancy | 1,859 | 1,928 | 1,767 | 1,967 | 1,775 | 7,521 | 7,151 | |||||||||||||||
Equipment | 1,198 | 1,380 | 1,313 | 1,467 | 1,556 | 5,358 | 6,208 | |||||||||||||||
Outsourced services | 1,960 | 1,793 | 1,710 | 1,457 | 1,311 | 6,920 | 5,222 | |||||||||||||||
Legal, audit and professional fees | 562 | 534 | 582 | 616 | 597 | 2,294 | 2,579 | |||||||||||||||
FDIC deposit insurance costs | 389 | 308 | 469 | 481 | 390 | 1,647 | 1,878 | |||||||||||||||
Advertising and promotion | 466 | 416 | 362 | 237 | 403 | 1,481 | 1,458 | |||||||||||||||
Amortization of intangibles | 248 | 253 | 257 | 277 | 318 | 1,035 | 1,284 | |||||||||||||||
Debt prepayment penalties | — | — | — | — | — | — | 431 | |||||||||||||||
Change in fair value of contingent consideration | (333 | ) | — | — | (310 | ) | — | (643 | ) | (898 | ) | |||||||||||
Other expenses | 2,322 | 2,891 | 2,488 | 2,299 | 2,095 | 10,000 | 8,569 | |||||||||||||||
Total noninterest expense | 25,754 | 26,754 | 26,306 | 25,286 | 24,973 | 104,100 | 101,103 | |||||||||||||||
Income before income taxes | 21,145 | 19,288 | 19,704 | 17,503 | 18,035 | 77,640 | 68,854 | |||||||||||||||
Income tax expense | 13,163 | 6,326 | 6,505 | 5,721 | 5,873 | 31,715 | 22,373 | |||||||||||||||
Net income | $7,982 | $12,962 | $13,199 | $11,782 | $12,162 | $45,925 | $46,481 | |||||||||||||||
Net income available to common shareholders: | ||||||||||||||||||||||
Basic | $7,958 | $12,934 | $13,170 | $11,755 | $12,137 | $45,817 | $46,384 | |||||||||||||||
Diluted | $7,958 | $12,934 | $13,170 | $11,755 | $12,137 | $45,817 | $46,384 | |||||||||||||||
Weighted average common shares outstanding: | ||||||||||||||||||||||
Basic | 17,223 | 17,212 | 17,206 | 17,186 | 17,142 | 17,207 | 17,081 | |||||||||||||||
Diluted | 17,349 | 17,318 | 17,316 | 17,293 | 17,245 | 17,338 | 17,208 | |||||||||||||||
Earnings per common share: | ||||||||||||||||||||||
Basic | $0.46 | $0.75 | $0.77 | $0.68 | $0.71 | $2.66 | $2.72 | |||||||||||||||
Diluted | $0.46 | $0.75 | $0.76 | $0.68 | $0.70 | $2.64 | $2.70 | |||||||||||||||
Cash dividends declared per share | $0.39 | $0.39 | $0.38 | $0.38 | $0.37 | $1.54 | $1.46 | |||||||||||||||
-7-
SELECTED FINANCIAL HIGHLIGHTS | |||||||||||||||
(Unaudited; Dollars in thousands, except per share amounts) | |||||||||||||||
Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | |||||||||||
Share and Equity Related Data: | |||||||||||||||
Book value per share | $23.99 | $24.06 | $23.59 | $23.14 | $22.76 | ||||||||||
Tangible book value per share - Non-GAAP (1) | $19.75 | $19.81 | $19.32 | $18.83 | $18.44 | ||||||||||
Market value per share | $53.25 | $57.25 | $51.55 | $49.30 | $56.05 | ||||||||||
Shares issued and outstanding at end of period | 17,227 | 17,214 | 17,210 | 17,193 | 17,171 | ||||||||||
Capital Ratios: | |||||||||||||||
Tier 1 risk-based capital | 11.65% (i) | 11.69 | % | 11.92 | % | 11.54 | % | 11.44 | % | ||||||
Total risk-based capital | 12.45% (i) | 12.53 | % | 12.78 | % | 12.38 | % | 12.26 | % | ||||||
Tier 1 leverage ratio | 8.79% (i) | 8.83 | % | 8.78 | % | 8.58 | % | 8.67 | % | ||||||
Common equity tier 1 | 10.99% (i) | 11.02 | % | 11.23 | % | 10.86 | % | 10.75 | % | ||||||
Equity to assets | 9.12 | % | 9.27 | % | 9.28 | % | 9.06 | % | 8.92 | % | |||||
Tangible equity to tangible assets - Non-GAAP (1) | 7.63 | % | 7.76 | % | 7.73 | % | 7.51 | % | 7.35 | % | |||||
(i) - estimated | |||||||||||||||
For the Twelve Months Ended | |||||||||||||||
For the Three Months Ended | |||||||||||||||
Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Dec 31, 2017 | Dec 31, 2016 | |||||||||
Performance Ratios: | |||||||||||||||
Net interest margin (FTE) | 2.95 | % | 2.93 | % | 2.97 | % | 2.87 | % | 2.89 | % | 2.93 | % | 3.02 | % | |
Return on average assets | 0.71 | % | 1.18 | % | 1.21 | % | 1.08 | % | 1.14 | % | 1.04 | % | 1.16 | % | |
Return on average tangible assets - Non-GAAP (1) | 0.73 | % | 1.20 | % | 1.23 | % | 1.10 | % | 1.16 | % | 1.06 | % | 1.19 | % | |
Return on average equity | 7.65 | % | 12.56 | % | 13.06 | % | 11.87 | % | 12.26 | % | 11.26 | % | 11.96 | % | |
Return on average tangible equity - Non-GAAP (1) | 9.27 | % | 15.27 | % | 15.98 | % | 14.59 | % | 15.09 | % | 13.73 | % | 14.82 | % | |
(1) | See the section labeled “SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures” at the end of this document. |
-8-
SELECTED FINANCIAL HIGHLIGHTS | ||||||||||||||||||||||
(Unaudited; Dollars in thousands) | ||||||||||||||||||||||
For the Twelve Months Ended | ||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||
Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Dec 31, 2017 | Dec 31, 2016 | ||||||||||||||||
Wealth Management Results | ||||||||||||||||||||||
Wealth Management Revenues: | ||||||||||||||||||||||
Asset-based revenues | 9,686 | 9,791 | 9,401 | 9,247 | 9,054 | 38,125 | 36,139 | |||||||||||||||
Transaction-based revenues | 228 | 222 | 541 | 230 | 237 | 1,221 | 1,430 | |||||||||||||||
Total wealth management revenues | $9,914 | $10,013 | $9,942 | $9,477 | $9,291 | $39,346 | $37,569 | |||||||||||||||
Assets Under Administration: | ||||||||||||||||||||||
Balance at beginning of period | $6,587,899 | $6,403,501 | $6,243,301 | $6,063,293 | $6,056,859 | $6,063,293 | $5,844,636 | |||||||||||||||
Net investment appreciation (depreciation) & income | 163,681 | 270,549 | 162,924 | 220,423 | (8,506 | ) | 817,577 | 277,848 | ||||||||||||||
Net client asset flows | (36,943 | ) | (86,151 | ) | (2,724 | ) | (40,415 | ) | 14,940 | (166,233 | ) | (59,191 | ) | |||||||||
Balance at end of period | $6,714,637 | $6,587,899 | $6,403,501 | $6,243,301 | $6,063,293 | $6,714,637 | $6,063,293 | |||||||||||||||
Mortgage Banking Results | ||||||||||||||||||||||
Mortgage Banking Revenues: | ||||||||||||||||||||||
Gains & commissions on loan sales, net | $2,987 | $2,952 | $2,784 | $2,268 | $4,455 | $10,991 | $13,137 | |||||||||||||||
Residential mortgage servicing fee income, net | 110 | 84 | 135 | 72 | 86 | 401 | 46 | |||||||||||||||
Total mortgage banking revenues | $3,097 | $3,036 | $2,919 | $2,340 | $4,541 | $11,392 | $13,183 | |||||||||||||||
Residential Mortgage Loan Originations: | ||||||||||||||||||||||
Originations for retention in portfolio | $75,595 | $90,378 | $94,794 | $57,907 | $72,533 | $318,674 | $264,466 | |||||||||||||||
Originations for sale to secondary market (1) | 143,834 | 143,112 | 144,491 | 102,441 | 185,626 | 533,878 | 600,800 | |||||||||||||||
Total mortgage loan originations | $219,429 | $233,490 | $239,285 | $160,348 | $258,159 | $852,552 | $865,266 | |||||||||||||||
Residential Mortgage Loans Sold: | ||||||||||||||||||||||
Sold with servicing rights retained | $39,769 | $37,823 | $29,199 | $22,567 | $48,545 | $129,358 | $165,414 | |||||||||||||||
Sold with servicing rights released (1) | 105,416 | 109,508 | 108,245 | 84,345 | 151,506 | 407,514 | 443,824 | |||||||||||||||
Total mortgage loans sold | $145,185 | $147,331 | $137,444 | $106,912 | $200,051 | $536,872 | $609,238 | |||||||||||||||
(1) | Also includes loans originated in a broker capacity. |
-9-
END OF PERIOD LOAN AND DEPOSIT COMPOSITION | |||||||||||||||
(Unaudited; Dollars in thousands) | |||||||||||||||
Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | |||||||||||
Commercial: | |||||||||||||||
Mortgages | $1,072,487 | $1,085,535 | $1,009,096 | $1,076,648 | $1,074,186 | ||||||||||
Construction & development | 138,008 | 126,257 | 112,177 | 123,841 | 121,371 | ||||||||||
Commercial & industrial | 612,334 | 588,324 | 577,116 | 562,010 | 576,109 | ||||||||||
Total commercial | 1,822,829 | 1,800,116 | 1,698,389 | 1,762,499 | 1,771,666 | ||||||||||
Residential Real Estate: | |||||||||||||||
Mortgages | 1,206,458 | 1,171,161 | 1,143,416 | 1,100,435 | 1,094,824 | ||||||||||
Homeowner construction | 20,790 | 24,376 | 24,689 | 30,775 | 27,924 | ||||||||||
Total residential real estate | 1,227,248 | 1,195,537 | 1,168,105 | 1,131,210 | 1,122,748 | ||||||||||
Consumer: | |||||||||||||||
Home equity lines | 258,114 | 259,880 | 263,934 | 258,695 | 264,200 | ||||||||||
Home equity loans | 34,353 | 34,777 | 35,173 | 36,050 | 37,272 | ||||||||||
Other | 31,527 | 32,768 | 34,499 | 36,406 | 38,485 | ||||||||||
Total consumer | 323,994 | 327,425 | 333,606 | 331,151 | 339,957 | ||||||||||
Total loans | $3,374,071 | $3,323,078 | $3,200,100 | $3,224,860 | $3,234,371 | ||||||||||
December 31, 2017 | December 31, 2016 | ||||||||||
Balance | % of Total | Balance | % of Total | ||||||||
Commercial Real Estate Loans by Property Location: | |||||||||||
Rhode Island, Connecticut, Massachusetts | $1,131,077 | 93.5 | % | $1,105,539 | 92.5 | % | |||||
New York, New Jersey, Pennsylvania | 66,857 | 5.5 | % | 77,038 | 6.4 | % | |||||
New Hampshire | 12,561 | 1.0 | % | 12,980 | 1.1 | % | |||||
Total commercial real estate loans (1) | $1,210,495 | 100.0 | % | $1,195,557 | 100.0 | % | |||||
Residential Mortgages by Property Location: | |||||||||||
Rhode Island, Connecticut, Massachusetts | $1,210,895 | 98.6 | % | $1,106,366 | 98.6 | % | |||||
New Hampshire, Vermont, Maine | 12,061 | 1.0 | % | 11,445 | 1.0 | % | |||||
New York, Virginia, New Jersey, Maryland, Pennsylvania | 2,168 | 0.2 | % | 2,648 | 0.2 | % | |||||
Ohio | 862 | 0.1 | % | 997 | 0.1 | % | |||||
Other | 1,262 | 0.1 | % | 1,292 | 0.1 | % | |||||
Total residential mortgages | $1,227,248 | 100.0 | % | $1,122,748 | 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. |
Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | |||||||||||
Deposits: | |||||||||||||||
Non-interest bearing demand deposits | $578,410 | $575,866 | $533,147 | $534,792 | $521,165 | ||||||||||
Interest-bearing demand deposits | 82,728 | 45,407 | 54,666 | 62,182 | 64,795 | ||||||||||
NOW accounts | 466,605 | 448,128 | 448,617 | 454,344 | 427,707 | ||||||||||
Money market accounts | 731,345 | 716,827 | 666,047 | 762,233 | 730,075 | ||||||||||
Savings accounts | 368,524 | 367,912 | 364,002 | 362,281 | 358,397 | ||||||||||
Time deposits (in-market) | 617,368 | 587,166 | 553,783 | 557,312 | 549,376 | ||||||||||
Wholesale brokered time deposits | 397,727 | 415,775 | 400,927 | 382,427 | 412,237 | ||||||||||
Total deposits | $3,242,707 | $3,157,081 | $3,021,189 | $3,115,571 | $3,063,752 | ||||||||||
-10-
CREDIT & ASSET QUALITY DATA | |||||||||||||||
(Unaudited; Dollars in thousands) | |||||||||||||||
Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | |||||||||||
Asset Quality Ratios: | |||||||||||||||
Nonperforming assets to total assets | 0.34 | % | 0.44 | % | 0.49 | % | 0.54 | % | 0.53 | % | |||||
Nonaccrual loans to total loans | 0.45 | % | 0.56 | % | 0.63 | % | 0.69 | % | 0.68 | % | |||||
Total past due loans to total loans | 0.59 | % | 0.49 | % | 0.66 | % | 0.65 | % | 0.76 | % | |||||
Allowance for loan losses to nonaccrual loans | 174.14 | % | 147.52 | % | 132.00 | % | 119.52 | % | 117.89 | % | |||||
Allowance for loan losses to total loans | 0.79 | % | 0.82 | % | 0.83 | % | 0.82 | % | 0.80 | % | |||||
Nonperforming Assets: | |||||||||||||||
Commercial mortgages | $4,954 | $5,887 | $6,422 | $7,809 | $7,811 | ||||||||||
Commercial & industrial | 283 | 429 | 1,232 | 1,129 | 1,337 | ||||||||||
Residential real estate mortgages | 9,414 | 11,699 | 11,815 | 12,253 | 11,736 | ||||||||||
Consumer | 560 | 496 | 729 | 936 | 1,174 | ||||||||||
Total nonaccrual loans | 15,211 | 18,511 | 20,198 | 22,127 | 22,058 | ||||||||||
Other real estate owned | 131 | 1,038 | 1,342 | 1,410 | 1,075 | ||||||||||
Total nonperforming assets | $15,342 | $19,549 | $21,540 | $23,537 | $23,133 | ||||||||||
Past Due Loans (30 days or more past due): | |||||||||||||||
Commercial mortgages | $4,960 | $5,887 | $6,422 | $7,806 | $8,708 | ||||||||||
Commercial & industrial | 4,076 | 455 | 4,009 | 1,046 | 1,154 | ||||||||||
Residential real estate mortgages | 7,855 | 7,802 | 8,857 | 10,533 | 12,226 | ||||||||||
Consumer loans | 3,184 | 2,303 | 1,832 | 1,547 | 2,334 | ||||||||||
Total past due loans | $20,075 | $16,447 | $21,120 | $20,932 | $24,422 | ||||||||||
Accruing loans 90 days or more past due | $— | $— | $— | $— | $— | ||||||||||
Nonaccrual loans included in past due loans | $11,788 | $13,216 | $14,490 | $18,081 | $18,602 | ||||||||||
For the Twelve Months Ended | ||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||
Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Dec 31, 2017 | Dec 31, 2016 | ||||||||||||||||
Nonaccrual Loan Activity: | ||||||||||||||||||||||
Balance at beginning of period | $18,511 | $20,198 | $22,127 | $22,058 | $23,950 | $22,058 | $21,047 | |||||||||||||||
Additions to nonaccrual status | 462 | 1,969 | 1,946 | 2,138 | 2,105 | 6,515 | 15,278 | |||||||||||||||
Loans returned to accruing status | (1,316 | ) | (1,411 | ) | (778 | ) | (547 | ) | (718 | ) | (4,052 | ) | (1,516 | ) | ||||||||
Loans charged-off | (1,047 | ) | (694 | ) | (642 | ) | (79 | ) | (2,622 | ) | (2,462 | ) | (7,012 | ) | ||||||||
Loans transferred to other real estate owned | — | — | (98 | ) | (478 | ) | (30 | ) | (576 | ) | (1,075 | ) | ||||||||||
Payments, payoffs and other changes | (1,399 | ) | (1,551 | ) | (2,357 | ) | (965 | ) | (627 | ) | (6,272 | ) | (4,664 | ) | ||||||||
Balance at end of period | $15,211 | $18,511 | $20,198 | $22,127 | $22,058 | $15,211 | $22,058 | |||||||||||||||
Allowance for Loan Losses: | ||||||||||||||||||||||
Balance at beginning of period | $27,308 | $26,662 | $26,446 | $26,004 | $25,649 | $26,004 | $27,069 | |||||||||||||||
Provision charged to earnings | 200 | 1,300 | 700 | 400 | 2,900 | 2,600 | 5,650 | |||||||||||||||
Charge-offs | (1,047 | ) | (694 | ) | (642 | ) | (79 | ) | (2,622 | ) | (2,462 | ) | (7,012 | ) | ||||||||
Recoveries | 27 | 40 | 158 | 121 | 77 | 346 | 297 | |||||||||||||||
Balance at end of period | $26,488 | $27,308 | $26,662 | $26,446 | $26,004 | $26,488 | $26,004 | |||||||||||||||
Net Loan Charge-Offs (Recoveries): | ||||||||||||||||||||||
Commercial mortgages | $932 | $535 | $318 | $— | $2,510 | $1,785 | $5,760 | |||||||||||||||
Commercial & industrial | 43 | 114 | 115 | (105 | ) | (20 | ) | 167 | 603 | |||||||||||||
Residential real estate mortgages | 32 | (1 | ) | 8 | (4 | ) | 6 | 35 | 189 | |||||||||||||
Consumer | 13 | 6 | 43 | 67 | 49 | 129 | 163 | |||||||||||||||
Total | $1,020 | $654 | $484 | ($42 | ) | $2,545 | $2,116 | $6,715 | ||||||||||||||
Net charge-offs to average loans (annualized) | 0.12 | % | 0.08 | % | 0.06 | % | (0.01 | %) | 0.31 | % | 0.06 | % | 0.21 | % | ||||||||
-11-
The following table presents average balance and interest rate information. Tax-exempt income is converted to a fully taxable equivalent (FTE) basis using the statutory federal income tax rate adjusted for applicable state income taxes net of the related federal tax benefit. Unrealized gains (losses) on available for sale securities and fair value adjustments on mortgage loans held for sale are excluded from the average balance and yield calculations. Nonaccrual and renegotiated loans, as well as interest recognized on these loans are included in amounts presented for loans.
CONSOLIDATED AVERAGE BALANCE SHEETS (FTE Basis) | |||||||||||||||||||||||
(Unaudited; Dollars in thousands) | |||||||||||||||||||||||
For the Three Months Ended | December 31, 2017 | September 30, 2017 | December 31, 2016 | ||||||||||||||||||||
Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | |||||||||||||||
Assets: | |||||||||||||||||||||||
Commercial mortgages | $1,076,786 | $10,356 | 3.82 | $1,027,517 | $9,909 | 3.83 | $1,086,772 | $9,520 | 3.48 | ||||||||||||||
Construction & development | 142,584 | 1,487 | 4.14 | 133,190 | 1,326 | 3.95 | 110,342 | 927 | 3.34 | ||||||||||||||
Commercial & industrial | 598,790 | 6,897 | 4.57 | 590,915 | 6,684 | 4.49 | 575,983 | 6,927 | 4.78 | ||||||||||||||
Total commercial loans | 1,818,160 | $18,740 | 4.09 | 1,751,622 | $17,919 | 4.06 | 1,773,097 | $17,374 | 3.90 | ||||||||||||||
Residential real estate loans, including loans held for sale | 1,226,369 | 11,727 | 3.79 | 1,210,686 | 11,541 | 3.78 | 1,140,492 | 10,652 | 3.72 | ||||||||||||||
Consumer loans | 326,445 | 3,556 | 4.32 | 329,689 | 3,604 | 4.34 | 341,528 | 3,284 | 3.83 | ||||||||||||||
Total loans | 3,370,974 | 34,023 | 4.00 | 3,291,997 | 33,064 | 3.98 | 3,255,117 | 31,310 | 3.83 | ||||||||||||||
Cash, federal funds sold and short-term investments | 62,040 | 217 | 1.39 | 61,390 | 197 | 1.27 | 77,092 | 95 | 0.49 | ||||||||||||||
FHLBB stock | 41,003 | 481 | 4.65 | 44,057 | 467 | 4.21 | 39,212 | 362 | 3.67 | ||||||||||||||
Taxable debt securities | 756,322 | 4,719 | 2.48 | 751,735 | 4,655 | 2.46 | 636,277 | 3,703 | 2.32 | ||||||||||||||
Nontaxable debt securities | 2,625 | 38 | 5.74 | 4,287 | 65 | 6.02 | 16,003 | 244 | 6.07 | ||||||||||||||
Total securities | 758,947 | 4,757 | 2.49 | 756,022 | 4,720 | 2.48 | 652,280 | 3,947 | 2.41 | ||||||||||||||
Total interest-earning assets | 4,232,964 | 39,478 | 3.70 | 4,153,466 | 38,448 | 3.67 | 4,023,701 | 35,714 | 3.53 | ||||||||||||||
Noninterest-earning assets | 240,376 | 248,070 | 249,182 | ||||||||||||||||||||
Total assets | $4,473,340 | $4,401,536 | $4,272,883 | ||||||||||||||||||||
Liabilities and Shareholders' Equity: | |||||||||||||||||||||||
Interest-bearing demand deposits | $64,344 | $25 | 0.15 | $46,352 | $30 | 0.26 | $46,668 | $16 | 0.14 | ||||||||||||||
NOW accounts | 448,677 | 42 | 0.04 | 442,166 | 68 | 0.06 | 408,788 | 51 | 0.05 | ||||||||||||||
Money market accounts | 743,966 | 807 | 0.43 | 680,755 | 642 | 0.37 | 761,582 | 574 | 0.30 | ||||||||||||||
Savings accounts | 371,236 | 63 | 0.07 | 366,177 | 56 | 0.06 | 356,837 | 51 | 0.06 | ||||||||||||||
Time deposits (in-market) | 606,732 | 1,765 | 1.15 | 565,402 | 1,566 | 1.10 | 552,474 | 1,419 | 1.02 | ||||||||||||||
Wholesale brokered time deposits | 376,709 | 1,434 | 1.51 | 404,953 | 1,473 | 1.44 | 382,798 | 1,334 | 1.39 | ||||||||||||||
FHLBB advances | 785,169 | 3,708 | 1.87 | 837,300 | 3,816 | 1.81 | 732,269 | 2,886 | 1.57 | ||||||||||||||
Junior subordinated debentures | 22,681 | 167 | 2.92 | 22,681 | 159 | 2.78 | 22,681 | 135 | 2.37 | ||||||||||||||
Other | — | — | — | 1 | — | — | 40 | 1 | 9.95 | ||||||||||||||
Total interest-bearing liabilities | 3,419,514 | 8,011 | 0.93 | 3,365,787 | 7,810 | 0.92 | 3,264,137 | 6,467 | 0.79 | ||||||||||||||
Demand deposits | 582,714 | 567,737 | 548,595 | ||||||||||||||||||||
Other liabilities | 53,544 | 55,150 | 63,410 | ||||||||||||||||||||
Shareholders' equity | 417,568 | 412,862 | 396,741 | ||||||||||||||||||||
Total liabilities and shareholders' equity | $4,473,340 | $4,401,536 | $4,272,883 | ||||||||||||||||||||
Net interest income (FTE) | $31,467 | $30,638 | $29,247 | ||||||||||||||||||||
Interest rate spread | 2.77 | 2.75 | 2.74 | ||||||||||||||||||||
Net interest margin | 2.95 | 2.93 | 2.89 | ||||||||||||||||||||
Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:
For the Three Months Ended | Dec 31, 2017 | Sep 30, 2017 | Dec 31, 2016 | ||||||
Commercial loans | $564 | $555 | $572 | ||||||
Nontaxable debt securities | 14 | 24 | 87 | ||||||
Total | $578 | $579 | $659 | ||||||
-12-
CONSOLIDATED AVERAGE BALANCE SHEETS (FTE Basis) | |||||||||||||||
(Unaudited; Dollars in thousands) | |||||||||||||||
For the Twelve Months Ended | December 31, 2017 | December 31, 2016 | |||||||||||||
Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | ||||||||||
Assets: | |||||||||||||||
Commercial mortgages | $1,055,127 | $39,529 | 3.75 | $1,030,289 | $36,089 | 3.50 | |||||||||
Construction & development | 132,504 | 5,137 | 3.88 | 110,770 | 3,732 | 3.37 | |||||||||
Commercial & industrial | 584,647 | 26,347 | 4.51 | 584,307 | 27,398 | 4.69 | |||||||||
Total commercial loans | 1,772,278 | 71,013 | 4.01 | 1,725,366 | 67,219 | 3.90 | |||||||||
Residential real estate loans, including loans held for sale | 1,188,369 | 45,224 | 3.81 | 1,069,402 | 41,173 | 3.85 | |||||||||
Consumer loans | 330,783 | 13,947 | 4.22 | 342,431 | 13,328 | 3.89 | |||||||||
Total loans | 3,291,430 | 130,184 | 3.96 | 3,137,199 | 121,720 | 3.88 | |||||||||
Cash, federal funds sold and short-term investments | 60,033 | 674 | 1.12 | 75,997 | 322 | 0.42 | |||||||||
FHLBB stock | 43,256 | 1,774 | 4.10 | 33,643 | 1,091 | 3.24 | |||||||||
Taxable debt securities | 759,304 | 18,927 | 2.49 | 472,892 | 11,584 | 2.45 | |||||||||
Nontaxable debt securities | 6,347 | 384 | 6.05 | 24,939 | 1,520 | 6.09 | |||||||||
Total securities | 765,651 | 19,311 | 2.52 | 497,831 | 13,104 | 2.63 | |||||||||
Total interest-earning assets | 4,160,370 | 151,943 | 3.65 | 3,744,670 | 136,237 | 3.64 | |||||||||
Noninterest-earning assets | 238,636 | 249,808 | |||||||||||||
Total assets | $4,399,006 | $3,994,478 | |||||||||||||
Liabilities and Shareholders' Equity: | |||||||||||||||
Interest-bearing demand deposits | $55,534 | $62 | 0.11 | $45,038 | $49 | 0.11 | |||||||||
NOW accounts | 437,277 | 218 | 0.05 | 400,209 | 212 | 0.05 | |||||||||
Money market accounts | 722,590 | 2,688 | 0.37 | 741,925 | 2,035 | 0.27 | |||||||||
Savings accounts | 364,255 | 221 | 0.06 | 343,943 | 200 | 0.06 | |||||||||
Time deposits (in-market) | 571,733 | 6,208 | 1.09 | 546,460 | 5,486 | 1.00 | |||||||||
Wholesale brokered time deposits | 392,894 | 5,667 | 1.44 | 323,390 | 4,522 | 1.40 | |||||||||
FHLBB advances | 817,784 | 14,377 | 1.76 | 616,404 | 9,992 | 1.62 | |||||||||
Junior subordinated debentures | 22,681 | 613 | 2.70 | 22,681 | 491 | 2.16 | |||||||||
Other | 10 | 1 | 10.00 | 60 | 5 | 8.33 | |||||||||
Total interest-bearing liabilities | 3,384,758 | 30,055 | 0.89 | 3,040,110 | 22,992 | 0.76 | |||||||||
Demand deposits | 555,548 | 503,806 | |||||||||||||
Other liabilities | 50,684 | 62,021 | |||||||||||||
Shareholders' equity | 408,016 | 388,541 | |||||||||||||
Total liabilities and shareholders' equity | $4,399,006 | $3,994,478 | |||||||||||||
Net interest income (FTE) | $121,888 | $113,245 | |||||||||||||
Interest rate spread | 2.76 | 2.88 | |||||||||||||
Net interest margin | 2.93 | 3.02 | |||||||||||||
Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:
For the Twelve Months Ended | Dec 31, 2017 | Dec 31, 2016 | ||||
Commercial loans | $2,222 | $2,229 | ||||
Nontaxable debt securities | 135 | 538 | ||||
Total | $2,357 | $2,767 | ||||
-13-
SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures | |||||||||||||||
(Unaudited; Dollars in thousands, except per share amounts) | |||||||||||||||
Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | |||||||||||
Tangible Book Value per Share: | |||||||||||||||
Total shareholders' equity, as reported | $413,284 | $414,228 | $406,042 | $397,785 | $390,804 | ||||||||||
Less: | |||||||||||||||
Goodwill | 63,909 | 63,909 | 63,909 | 64,059 | 64,059 | ||||||||||
Identifiable intangible assets, net | 9,140 | 9,388 | 9,642 | 9,898 | 10,175 | ||||||||||
Total tangible shareholders' equity | $340,235 | $340,931 | $332,491 | $323,828 | $316,570 | ||||||||||
Shares outstanding, as reported | 17,227 | 17,214 | 17,210 | 17,193 | 17,171 | ||||||||||
Book value per share - GAAP | $23.99 | $24.06 | $23.59 | $23.14 | $22.76 | ||||||||||
Tangible book value per share - Non-GAAP | $19.75 | $19.81 | $19.32 | $18.83 | $18.44 | ||||||||||
Tangible Equity to Tangible Assets: | |||||||||||||||
Total tangible shareholders' equity | $340,235 | $340,931 | $332,491 | $323,828 | $316,570 | ||||||||||
Total assets, as reported | $4,529,850 | $4,469,230 | $4,375,529 | $4,388,763 | $4,381,115 | ||||||||||
Less: | |||||||||||||||
Goodwill | 63,909 | 63,909 | 63,909 | 64,059 | 64,059 | ||||||||||
Identifiable intangible assets, net | 9,140 | 9,388 | 9,642 | 9,898 | 10,175 | ||||||||||
Total tangible assets | $4,456,801 | $4,395,933 | $4,301,978 | $4,314,806 | $4,306,881 | ||||||||||
Equity to assets - GAAP | 9.12 | % | 9.27 | % | 9.28 | % | 9.06 | % | 8.92 | % | |||||
Tangible equity to tangible assets - Non-GAAP | 7.63 | % | 7.76 | % | 7.73 | % | 7.51 | % | 7.35 | % | |||||
For the Three Months Ended | For the Twelve Months Ended | |||||||||||||||||||||
Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Dec 31, 2017 | Dec 31, 2016 | ||||||||||||||||
Return on Average Tangible Assets: | ||||||||||||||||||||||
Net income, as reported | $7,982 | $12,962 | $13,199 | $11,782 | $12,162 | $45,925 | $46,481 | |||||||||||||||
Total average assets, as reported | $4,473,340 | $4,401,536 | $4,354,464 | $4,365,471 | $4,272,883 | $4,399,006 | $3,994,478 | |||||||||||||||
Less average balances of: | ||||||||||||||||||||||
Goodwill | 63,909 | 63,909 | 64,058 | 64,059 | 64,059 | 63,983 | 64,059 | |||||||||||||||
Identifiable intangible assets, net | 9,261 | 9,511 | 9,767 | 10,027 | 10,330 | 9,639 | 10,810 | |||||||||||||||
Total average tangible assets | $4,400,170 | $4,328,116 | $4,280,639 | $4,291,385 | $4,198,494 | $4,325,384 | $3,919,609 | |||||||||||||||
Return on average assets - GAAP | 0.71 | % | 1.18 | % | 1.21 | % | 1.08 | % | 1.14 | % | 1.04 | % | 1.16 | % | ||||||||
Return on average tangible assets - Non-GAAP | 0.73 | % | 1.20 | % | 1.23 | % | 1.10 | % | 1.16 | % | 1.06 | % | 1.19 | % | ||||||||
Return on Average Tangible Equity: | ||||||||||||||||||||||
Net income, as reported | $7,982 | $12,962 | $13,199 | $11,782 | $12,162 | $45,925 | $46,481 | |||||||||||||||
Total average equity, as reported | $417,568 | $412,862 | $404,238 | $397,117 | $396,741 | $408,016 | $388,541 | |||||||||||||||
Less average balances of: | ||||||||||||||||||||||
Goodwill | 63,909 | 63,909 | 64,058 | 64,059 | 64,059 | 63,983 | 64,059 | |||||||||||||||
Identifiable intangible assets, net | 9,261 | 9,511 | 9,767 | 10,027 | 10,330 | 9,639 | 10,810 | |||||||||||||||
Total average tangible equity | $344,398 | $339,442 | $330,413 | $323,031 | $322,352 | $334,394 | $313,672 | |||||||||||||||
Return on average equity - GAAP | 7.65 | % | 12.56 | % | 13.06 | % | 11.87 | % | 12.26 | % | 11.26 | % | 11.96 | % | ||||||||
Return on average tangible equity - Non-GAAP | 9.27 | % | 15.27 | % | 15.98 | % | 14.59 | % | 15.09 | % | 13.73 | % | 14.82 | % | ||||||||
-14-