Jul. 21, 2010 (Business Wire) -- Washington Trust Bancorp, Inc. (NASDAQ Global Select®; symbol: WASH), parent company of The Washington Trust Company, today announced second quarter 2010 net income of $5.3 million, or 33 cents per diluted share, compared to second quarter 2009 net income of $3.8 million, or 23 cents per diluted share. For the six months ended June 30, 2010, net income amounted to $10.5 million, or 65 cents per diluted share, compared to $6.4 million, or 40 cents per diluted share, for the same period in 2009.
Selected second quarter 2010 developments:
- Net interest income increased by $829 thousand, or 5%, from the first quarter of 2010 and by $2.6 million, or 16%, from the second quarter of 2009, reflecting improvement in the net interest margin.
- Wealth management revenues increased by $457 thousand, or 7%, from the first quarter of 2010 and by $809 thousand, or 14%, from the second quarter 2009.
- Loan growth amounted to $35 million, or 2%, in the second quarter of 2010, with commercial loan growth of $21 million. In the last twelve months, loan growth totaled $81 million, or 4%, with $72 million of growth in the commercial loan portfolio.
- Nonperforming assets amounted to $25.9 million, or 0.89% of total assets, at June 30, 2010 down from $27.5 million, or 0.95% of total assets, at March 31, 2010. Total loans 30 days or more past due amounted to $28.7 million, or 1.45% of total loans, at June 30, 2010, down by $1.4 million in the second quarter.
Joseph J. MarcAurele, Washington Trust Bancorp, Inc.’s Chairman, President and Chief Executive Officer, stated, “We are pleased with Washington Trust’s positive earnings trend and good business growth, despite continued difficulties in the national and local economies. Strong business development and excellent customer service have contributed to our success along key business lines.”
Net Interest Income
Net interest income for the second quarter of 2010 increased by $829 thousand, or 5%, from the first quarter of 2010 and by $2.6 million, or 16%, from the second quarter a year ago. On a year-to-date basis, net interest income increased by $4.6 million, or 14%, from 2009. The net interest margin (annualized tax-equivalent net interest income as a percentage of average earning assets) for the second quarter of 2010 was 2.86%, up by 8 basis points from the first quarter of 2010 and by 41 basis points from the second quarter of 2009. For the six months ended June 30, 2010, the net interest margin was 2.82%, up by 40 basis points from the same period a year earlier. The quarter and year-to-date increases in net interest margin are due in large part to lower funding costs. On a year-to-date basis, the cost of interest-bearing liabilities declined by 65 basis points from 2009.
Noninterest Income
Wealth management revenues for the second quarter of 2010 increased by $457 thousand, or 7%, from the first quarter of 2010 and by $809 thousand, or 14%, from the second quarter last year. On a linked-quarter basis, the increase in wealth management revenues includes a $277 thousand increase in seasonal tax preparation fees. For the six months ended June 30, 2010, wealth management revenues were up by $1.7 million, or 15 percent, from the same period in 2009. Assets under administration totaled $3.7 billion at June 30, 2010, down by $241 million from March 31, 2010 reflecting declines in market value, net of income of $249 million and net client cash inflows of $8 million. Assets under administration were down by $111 million from December 31, 2009 and up by $343 million from June 30, 2009.
Net gains on loan sales and commissions on loans originated for others for the second quarter of 2010 amounted to $318 thousand, compared to $560 thousand in the first quarter of 2010 and $1.6 million in the second quarter a year earlier. On a year-to-date basis, this revenue source totaled $878 thousand, compared to $2.6 million in 2009. The decline in this revenue source was due to lower levels of residential mortgage refinancing activity.
Other-than-temporary impairment losses on investment securities amounted to $354 thousand for the second quarter of 2010, compared to $63 thousand in the first quarter of this year. There were no impairment losses recognized in the second quarter of 2009. On a year-to-date basis, impairment losses amounted to $417 thousand ($269 thousand after tax; 2 cents per diluted share) and $2.0 million ($1.3 million after tax; 8 cents per diluted share) for six months ended June 30, 2010 and 2009, respectively.
Noninterest Expenses
Noninterest expenses for the second quarter of 2010 increased by $1.4 million, or 7%, from the first quarter of 2010 and by $654 thousand, or 3%, from the second quarter of 2009. Included in second quarter 2009 noninterest expenses was a special FDIC assessment of $1.35 million ($869 thousand, after tax, or 5 cents per diluted share.) Excluding this special FDIC assessment, second quarter 2010 noninterest expenses increased by $2.0 million, or 11%, from the second quarter of 2009, due largely to increases in salaries and employee benefit costs as well as credit, collection and foreclosed property costs. Salaries and employee benefits costs, the largest component of noninterest expenses, increased by $1.4 million, or 13%, compared to the second quarter of 2009, reflecting the impact of higher staffing levels related to a new branch opened in the fourth quarter of 2009 and selected staffing additions in the commercial lending and wealth management areas. Credit, collection and foreclosed property costs for the second quarter of 2010 increased by $210 thousand, or 114%, from the same quarter in 2009.
Income tax expense amounted to $2.2 million for the second quarter of 2010, compared to $2.1 million for the first quarter of 2010 and $1.5 million for the second quarter of 2009. The effective tax rate for the second quarter of 2010 was 29.4%, as compared to 29.1% for the first quarter of 2010 and 28.1% for the second quarter of 2009.
Asset Quality
Nonperforming assets, delinquencies and troubled debt restructured loans all showed modest declines during the second quarter of 2010.
Nonperforming assets (nonaccrual loans, nonaccrual investment securities and property acquired through foreclosure or repossession) amounted to $25.9 million, or 0.89% of total assets, at June 30, 2010, compared to $27.5 million, or 0.95% of total assets, at March 31, 2010. Nonperforming assets were $30.5 million, or 1.06% of total assets, at December 31, 2009. Nonaccrual loans totaled $22.7 million at June 30, 2010, down by $1.6 million in the second quarter of 2010, reflecting a net decrease of $2.1 million in nonaccrual commercial loans and a net increase of $455 thousand in nonaccrual residential mortgages. Property acquired through foreclosure or repossession amounted to $2.3 million at June 30, 2010, compared to $2.0 million at both March 31, 2010 and December 31, 2009.
At June 30, 2010, total loans 30 days or more past due amounted to $28.7 million, or 1.45% of total loans, down by $1.4 million in the second quarter of 2010 and down by $2.9 million from the balance at December 31, 2009. Commercial loan delinquencies amounted to $15.0 million, or 1.47% of total commercial loans, at June 30, 2010, down by $4.1 million in the second quarter of 2010 and down by $6.7 million from the balance at December 31, 2009. Total residential mortgage and consumer loans 30 days or more past due amounted to $13.7 million, or 1.43% of these loans, at June 30, 2010, up by $2.7 million in the second quarter of 2010 and up by $3.8 million from the balance at December 31, 2009.
At June 30, 2010, loans classified as troubled debt restructurings totaled $13.3 million, down by $1.1 million in the second quarter of 2010 and up by $3.0 million from the balance at December 31, 2009. The June 30, 2010 balance includes $11.6 million of loans in accruing status based on management’s assessment of the collectibility of the loan and the borrower’s ability to meet the restructured terms.
The loan loss provision charged to earnings amounted to $1.5 million for the second quarter of 2010, unchanged from the first quarter of 2010 level and down by $1.5 million from the second quarter of 2009 level. For the six months ended June 30, 2010 and 2009, the loan loss provision totaled $3.0 million and $4.7 million, respectively. Net charge-offs amounted to $1.2 million in the second quarter of 2010, as compared to net charge-offs of $1.2 million in the first quarter of 2010 and $1.4 million in the second quarter of 2009. For the six months ended June 30, 2010, net charge-offs totaled $2.4 million, essentially unchanged from the comparable period in 2009.
Overall credit quality continues to be affected by weaknesses in national and regional economic conditions. These conditions, including high unemployment levels, may continue for the next few quarters. Management will continue to assess the adequacy of the allowance for loan losses in accordance with its established policies. The allowance for loan losses was $28.0 million, or 1.42% of total loans, at June 30, 2010, compared to $27.7 million, or 1.43% of total loans at March 31, 2010. The allowance for loan losses was $27.4 million, or 1.43% of total loans, at December 31, 2009.
Loans
Total loans grew by $35 million, or 2%, in the second quarter of 2010, led by a $21 million increase in the commercial loan portfolio. The residential mortgage portfolio grew by $14 million in the second quarter of 2010 while consumer loan balances increased by $821 thousand. During the first six months of 2010, total loans grew by $53 million, or 3%, with the largest increase in the commercial loan portfolio.
Investment Securities
The investment securities portfolio amounted to $676 million at June 30, 2010, down by $41 million from the balance at March 31, 2010 and down by $100 million from the balance at June 30, 2009 primarily due to management’s strategy to not reinvest the proceeds from maturities and pay-downs on mortgage-backed securities. The largest component of the investment securities portfolio is mortgage-backed securities, all of which are issued by U.S. Government agencies or U.S. Government-sponsored enterprises. At June 30, 2010, the net unrealized gain position on the investment securities portfolio was $22.6 million, including gross unrealized losses of $11.9 million. Approximately 97% of the gross unrealized losses on the investment securities portfolio were concentrated in variable rate trust preferred securities issued by financial services companies. During the second quarter of 2010, credit-related impairment losses of $354 thousand were charged to earnings on a pooled trust preferred debt security deemed to be other-than-temporarily impaired.
Deposits and Borrowings
Deposits totaled $1.9 billion at June 30, 2010, down by $11 million, or 1%, from the balance at March 31, 2010. Time deposits declined by $57 million, money market and savings account balances declined by $13 million and demand deposits and NOW account balances rose by $58 million during the quarter. On a year-to-date basis, total deposits increased by $27 million, including a $63 million, or 16%, increased in demand deposits and NOW account balances. Federal Home Loan Bank advances totaled $615 million at June 30, 2010, up by $37 million from March 31, 2010 and up by $8 million from December 31, 2009.
Dividends Declared
The Board of Directors declared a quarterly dividend of 21 cents per share for the quarter ended June 30, 2010. The dividend was paid on July 14, 2010 to shareholders of record on June 30, 2010.
Conference Call
Washington Trust Chairman, President and Chief Executive Officer Joseph J. MarcAurele, and David V. Devault, Executive Vice President, Chief Financial Officer and Secretary, will host a conference call on Thursday, July 22, 2010 at 8:30 a.m. (Eastern Time) to discuss Washington Trust’s second quarter results. This call is being webcast by SNL IR Solutions and can be accessed through the Investor Relations section of the Washington Trust website, www.washtrust.com, or may be accessed by calling (877) 317-6789, or (412) 317-6789 for international callers. A replay of the call will be posted in this same location on the website shortly after the conclusion of the call. To listen to a replay of the conference call, dial (877) 344-7529 and enter Conference ID #: 442265. The replay will be available until 9:00 a.m. on August 6, 2010.
Background
Washington Trust Bancorp, Inc. is the parent of The Washington Trust Company, a Rhode Island state-chartered bank founded in 1800. Washington Trust offers personal banking, business banking and wealth management services through its offices in Rhode Island, eastern Massachusetts and southeastern Connecticut. Washington Trust Bancorp, Inc.’s common stock trades on the NASDAQ Global Select® Market under the symbol “WASH.” Investor information is available on the Corporation’s web site: www.washtrust.com.
Forward-Looking Statements
This press release contains certain statements that may be considered “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, including statements regarding our strategy, effectiveness of investment programs, evaluations of future interest rate trends and liquidity, expectations as to growth in assets, deposits and results of operations, success of acquisitions, future operations, market position, financial position, and prospects, plans, goals and objectives of management are forward-looking statements. The actual results, performance or achievements of Washington Trust could differ materially from those projected in the forward-looking statements as a result of, among other factors, changes in general national, regional or international economic conditions or conditions affecting the banking or financial services industries or financial capital markets, volatility and disruption in national and international financial markets, government intervention in the U.S. financial system, reductions in net interest income resulting from interest rate volatility as well as changes in the balance and mix of loans and deposits, reductions in the market value of wealth management assets under administration, changes in the value of securities and other assets, reductions in loan demand, changes in loan collectibility, default and charge-off rates, changes in the size and nature of the Washington Trust’s competition, changes in legislation or regulation and accounting principles, policies and guidelines, and changes in the assumptions used in making such forward-looking statements. In addition, the factors described under “Risk Factors” in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2009, as filed with the Securities and Exchange Commission, may result in these differences. You should carefully review all of these factors, and you should be aware that there may be other factors that could cause these differences. These forward-looking statements were based on information, plans and estimates at the date of this press release, and Washington Trust assumes no obligation to update 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
Reported amounts are presented in accordance with U.S. generally accepted accounting principles ("GAAP"). 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.
| Washington Trust Bancorp, Inc. and Subsidiaries | |||||
| CONSOLIDATED BALANCE SHEETS (unaudited) | |||||
| June 30, | December 31, | ||||
| (Dollars in thousands, except par value) | 2010 | 2009 | |||
| Assets: | |||||
| Cash and noninterest-bearing balances due from banks | $32,787 | $38,167 | |||
| Interest-bearing balances due from banks | 26,676 | 13,686 | |||
| Other short-term investments | 4,426 | 5,407 | |||
| Mortgage loans held for sale | 8,798 | 9,909 | |||
| Securities available for sale, at fair value; | |||||
| amortized cost $653,355 in 2010 and $677,676 in 2009 | 675,938 | 691,484 | |||
| Federal Home Loan Bank stock, at cost | 42,008 | 42,008 | |||
| Loans: | |||||
| Commercial and other | 1,019,357 | 984,550 | |||
| Residential real estate | 622,613 | 605,575 | |||
| Consumer | 330,528 | 329,543 | |||
| Total loans | 1,972,498 | 1,919,668 | |||
| Less allowance for loan losses | 27,985 | 27,400 | |||
| Net loans | 1,944,513 | 1,892,268 | |||
| Premises and equipment, net | 27,237 | 27,524 | |||
| Accrued interest receivable | 9,195 | 9,137 | |||
| Investment in bank-owned life insurance | 50,871 | 44,957 | |||
| Goodwill | 58,114 | 58,114 | |||
| Identifiable intangible assets, net | 8,362 | 8,943 | |||
| Property acquired through foreclosure or repossession, net | 2,338 | 1,974 | |||
| Other assets | 38,590 | 40,895 | |||
| Total assets | $2,929,853 | $2,884,473 | |||
| Liabilities: | |||||
| Deposits: | |||||
| Demand deposits | $225,494 | $194,046 | |||
| NOW accounts | 234,014 | 202,367 | |||
| Money market accounts | 378,004 | 403,333 | |||
| Savings accounts | 209,616 | 191,580 | |||
| Time deposits | 902,777 | 931,684 | |||
| Total deposits | 1,949,905 | 1,923,010 | |||
| Dividends payable | 3,423 | 3,369 | |||
| Federal Home Loan Bank advances | 615,146 | 607,328 | |||
| Junior subordinated debentures | 32,991 | 32,991 | |||
| Other borrowings | 20,914 | 21,501 | |||
| Accrued expenses and other liabilities | 42,063 | 41,328 | |||
| Total liabilities | 2,664,442 | 2,629,527 | |||
| Shareholders’ Equity: | |||||
| Common stock of $.0625 par value; authorized 30,000,000 shares; | |||||
| issued 16,120,659 shares in 2010 and 16,061,748 shares in 2009 | 1,008 | 1,004 | |||
| Paid-in capital | 83,657 | 82,592 | |||
| Retained earnings | 172,186 | 168,514 | |||
| Accumulated other comprehensive income | 8,560 | 3,337 | |||
| Treasury stock, at cost; 19,185 in 2009 | – | (501 | ) | ||
| Total shareholders’ equity | 265,411 | 254,946 | |||
| Total liabilities and shareholders’ equity | $2,929,853 | $2,884,473 | |||
| Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||
| CONSOLIDATED STATEMENTS OF INCOME (unaudited) | |||||||||||
| (Dollars and shares in thousands, except per share amounts) | Three Months | Six Months | |||||||||
| Periods ended June 30, | 2010 | 2009 | 2010 | 2009 | |||||||
| Interest income: | |||||||||||
| Interest and fees on loans | $24,180 | $24,147 | $48,148 | $48,286 | |||||||
| Interest on securities: | |||||||||||
| Taxable | 5,837 | 7,588 | 11,888 | 16,037 | |||||||
| Nontaxable | 770 | 778 | 1,539 | 1,558 | |||||||
| Dividends on corporate stock and Federal Home Loan Bank stock | 54 | 55 | 109 | 127 | |||||||
| Other interest income | 13 | 9 | 34 | 26 | |||||||
| Total interest income | 30,854 | 32,577 | 61,718 | 66,034 | |||||||
| Interest expense: | |||||||||||
| Deposits | 5,331 | 8,481 | 11,100 | 18,028 | |||||||
| Federal Home Loan Bank advances | 6,000 | 7,112 | 12,219 | 14,339 | |||||||
| Junior subordinated debentures | 447 | 479 | 1,077 | 958 | |||||||
| Other interest expense | 243 | 244 | 485 | 489 | |||||||
| Total interest expense | 12,021 | 16,316 | 24,881 | 33,814 | |||||||
| Net interest income | 18,833 | 16,261 | 36,837 | 32,220 | |||||||
| Provision for loan losses | 1,500 | 3,000 | 3,000 | 4,700 | |||||||
| Net interest income after provision for loan losses | 17,333 | 13,261 | 33,837 | 27,520 | |||||||
| Noninterest income: | |||||||||||
| Wealth management services: | |||||||||||
| Trust and investment advisory fees | 5,153 | 4,402 | 10,170 | 8,524 | |||||||
| Mutual fund fees | 1,105 | 993 | 2,215 | 1,908 | |||||||
| Financial planning, commissions and other service fees | 505 | 559 | 684 | 935 | |||||||
| Wealth management services | 6,763 | 5,954 | 13,069 | 11,367 | |||||||
| Service charges on deposit accounts | 1,400 | 1,201 | 2,553 | 2,314 | |||||||
| Merchant processing fees | 2,406 | 2,086 | 4,012 | 3,435 | |||||||
| Income from bank-owned life insurance | 474 | 447 | 913 | 891 | |||||||
| Net gains on loan sales and commissions on loans originated for others | 318 | 1,552 | 878 | 2,596 | |||||||
| Net realized gains on securities | – | 257 | – | 314 | |||||||
| Net (losses) gains on interest rate swap contracts | (121 | ) | 341 | (53 | ) | 401 | |||||
| Other income | 273 | 465 | 586 | 884 | |||||||
| Noninterest income, excluding other-than-temporary impairment losses | 11,513 | 12,303 | 21,958 | 22,202 | |||||||
| Total other-than-temporary impairment losses on securities | (2,840 | ) | – | (4,102 | ) | (4,244 | ) | ||||
| Portion of loss recognized in other comprehensive income (before taxes) | 2,486 | – | 3,685 | 2,253 | |||||||
| Net impairment losses recognized in earnings | (354 | ) | – | (417 | ) | (1,991 | ) | ||||
| Total noninterest income | 11,159 | 12,303 | 21,541 | 20,211 | |||||||
| Noninterest expense: | |||||||||||
| Salaries and employee benefits | 11,726 | 10,359 | 23,227 | 20,834 | |||||||
| Net occupancy | 1,237 | 1,122 | 2,461 | 2,348 | |||||||
| Equipment | 1,014 | 1,036 | 2,011 | 2,011 | |||||||
| Merchant processing costs | 2,057 | 1,780 | 3,414 | 2,923 | |||||||
| Outsourced services | 855 | 568 | 1,610 | 1,354 | |||||||
| FDIC deposit insurance costs | 784 | 2,143 | 1,578 | 2,794 | |||||||
| Legal, audit and professional fees | 408 | 664 | 926 | 1,339 | |||||||
| Advertising and promotion | 419 | 491 | 783 | 792 | |||||||
| Amortization of intangibles | 290 | 308 | 581 | 616 | |||||||
| Other expenses | 2,193 | 1,858 | 3,984 | 3,708 | |||||||
| Total noninterest expense | 20,983 | 20,329 | 40,575 | 38,719 | |||||||
| Income before income taxes | 7,509 | 5,235 | 14,803 | 9,012 | |||||||
| Income tax expense | 2,211 | 1,470 | 4,333 | 2,577 | |||||||
| Net income | $5,298 | $3,765 | $10,470 | $6,435 | |||||||
| Weighted average common shares outstanding – basic | 16,104.6 | 15,983.6 | 16,081.3 | 15,963.2 | |||||||
| Weighted average common shares outstanding – diluted | 16,143.1 | 16,037.4 | 16,116.3 | 16,009.1 | |||||||
| Per share information: | |||||||||||
| Basic earnings per common share | $0.33 | $0.24 | $0.65 | $0.40 | |||||||
| Diluted earnings per common share | $0.33 | $0.23 | $0.65 | $0.40 | |||||||
| Cash dividends declared per share | $0.21 | $0.21 | $0.42 | $0.42 | |||||||
| Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||
| SELECTED FINANCIAL HIGHLIGHTS (unaudited) | |||||||||||||||
| At or for the Quarters Ended | |||||||||||||||
| June 30, | Mar 31, | Dec. 31, | Sept. 30, | June 30, | |||||||||||
| (Dollars in thousands, except per share amounts) | 2010 | 2010 | 2009 | 2009 | 2009 | ||||||||||
| Financial Data | |||||||||||||||
| Total assets | $2,929,853 | $2,896,425 | $2,884,473 | $2,888,065 | $2,919,808 | ||||||||||
| Total loans | 1,972,498 | 1,937,524 | 1,919,668 | 1,906,565 | 1,891,254 | ||||||||||
| Total securities | 675,938 | 716,964 | 691,484 | 732,646 | 776,435 | ||||||||||
| Total deposits | 1,949,905 | 1,961,188 | 1,923,010 | 1,894,170 | 1,883,720 | ||||||||||
| Total shareholders’ equity | 265,411 | 259,529 | 254,946 | 252,146 | 242,293 | ||||||||||
| Net interest income | 18,833 | 18,004 | 16,946 | 16,726 | 16,261 | ||||||||||
| Provision for loan losses | 1,500 | 1,500 | 2,000 | 1,800 | 3,000 | ||||||||||
| Noninterest income, excluding other-than-temporary impairment losses | 11,513 | 10,445 | 11,649 | 11,504 | 12,303 | ||||||||||
| Net impairment losses recognized in earnings | (354 | ) | (63 | ) | (679 | ) | (467 | ) | - | ||||||
| Noninterest expenses | 20,983 | 19,592 | 19,257 | 19,192 | 20,329 | ||||||||||
| Income tax expense | 2,211 | 2,122 | 1,911 | 1,858 | 1,470 | ||||||||||
| Net income | 5,298 | 5,172 | 4,748 | 4,913 | 3,765 | ||||||||||
| Share Data | |||||||||||||||
| Basic earnings per common share | $0.33 | $0.32 | $0.30 | $0.31 | $0.24 | ||||||||||
| Diluted earnings per common share | $0.33 | $0.32 | $0.30 | $0.31 | $0.23 | ||||||||||
| Dividends declared per share | $0.21 | $0.21 | $0.21 | $0.21 | $0.21 | ||||||||||
| Book value per share | $16.46 | $16.14 | $15.89 | $15.73 | $15.14 | ||||||||||
| Tangible book value per share – Non-GAAP* | $12.34 | $11.99 | $11.71 | $11.53 | $10.91 | ||||||||||
| Market value per share | $17.04 | $18.64 | $15.58 | $17.52 | $17.83 | ||||||||||
| Shares outstanding at end of period | 16,120.7 | 16,079.1 | 16,042.6 | 16,026.6 | 16,001.9 | ||||||||||
| Weighted average common shares outstanding – basic | 16,104.6 | 16,057.7 | 16,035.4 | 16,016.8 | 15,983.6 | ||||||||||
| Weighted average common shares outstanding – diluted | 16,143.1 | 16,101.5 | 16,082.0 | 16,074.5 | 16,037.4 | ||||||||||
| Key Ratios | |||||||||||||||
| Return on average assets | 0.73 | % | 0.71 | % | 0.66 | % | 0.68 | % | 0.52 | % | |||||
| Return on average tangible assets – Non-GAAP* | 0.74 | % | 0.73 | % | 0.67 | % | 0.69 | % | 0.53 | % | |||||
| Return on average equity | 8.05 | % | 8.00 | % | 7.47 | % | 7.94 | % | 6.22 | % | |||||
| Return on average tangible equity – Non-GAAP* | 10.78 | % | 10.80 | % | 10.16 | % | 10.91 | % | 8.63 | % | |||||
| Capital Ratios | |||||||||||||||
| Tier 1 risk-based capital | 11.22 | % (i) | 11.24 | % | 11.14 | % | 11.06 | % | 10.98 | % | |||||
| Total risk-based capital | 12.47 | % (i) | 12.50 | % | 12.40 | % | 12.31 | % | 12.23 | % | |||||
| Tier 1 leverage ratio | 7.94 | % (i) | 7.89 | % | 7.82 | % | 7.68 | % | 7.53 | % | |||||
| Equity to assets | 9.06 | % | 8.96 | % | 8.84 | % | 8.73 | % | 8.30 | % | |||||
| Tangible equity to tangible assets – Non-GAAP* | 6.95 | % | 6.81 | % | 6.67 | % | 6.55 | % | 6.12 | % | |||||
| (i) – estimated | |||||||||||||||
| Wealth Management Assets Under Administration | |||||||||||||||
| Balance at beginning of period | $3,900,783 | $3,770,193 | $3,603,424 | $3,316,308 | $2,957,918 | ||||||||||
| Net investment (depreciation) appreciation & income | (249,214 | ) | 95,855 | 88,690 | 295,257 | 313,999 | |||||||||
| Net customer cash flows | 7,814 | 34,735 | 78,079 | (8,141 | ) | 44,391 | |||||||||
| Balance at end of period | $3,659,383 | $3,900,783 | $3,770,193 | $3,603,424 | $3,316,308 | ||||||||||
| * - See the section labeled “Supplemental Information – Non-GAAP Financial Measures” at the end of this document. | |||||||||||||||
| Washington Trust Bancorp, Inc. and Subsidiaries | ||||||
| SELECTED FINANCIAL HIGHLIGHTS (unaudited) | ||||||
| Six Months Ended | ||||||
| June 30, | June 30, | |||||
| (Dollars in thousands, except per share amounts) | 2010 | 2009 | ||||
| Financial Data | ||||||
| Net interest income | $36,837 | $32,220 | ||||
| Provision for loan losses | 3,000 | 4,700 | ||||
| Noninterest income, excluding other-than-temporary impairment losses | 21,958 | 22,202 | ||||
| Net impairment losses recognized in earnings | (417 | ) | (1,991 | ) | ||
| Noninterest expenses | 40,575 | 38,719 | ||||
| Income tax expense | 4,333 | 2,577 | ||||
| Net income | 10,470 | 6,435 | ||||
| Share Data | ||||||
| Basic earnings per common share | $0.65 | $0.40 | ||||
| Diluted earnings per common share | $0.65 | $0.40 | ||||
| Dividends declared per share | $0.42 | $0.42 | ||||
| Weighted average common shares outstanding – basic | 16,081.3 | 15,963.2 | ||||
| Weighted average common shares outstanding – diluted | 16,116.3 | 16,009.1 | ||||
| Key Ratios | ||||||
| Return on average assets | 0.72 | % | 0.44 | % | ||
| Return on average tangible assets – Non-GAAP* | 0.74 | % | 0.45 | % | ||
| Return on average equity | 8.03 | % | 5.36 | % | ||
| Return on average tangible equity – Non-GAAP* | 10.79 | % | 7.48 | % | ||
| Asset Quality Data | ||||||
| Allowance for Loan Losses | ||||||
| Balance at beginning of period | $27,400 | $23,725 | ||||
| Provision charged to earnings | 3,000 | 4,700 | ||||
| Charge-offs | (2,538 | ) | (2,509 | ) | ||
| Recoveries | 123 | 135 | ||||
| Balance at end of period | $27,985 | $26,051 | ||||
| Net Loan Charge-Offs | ||||||
| Commercial: | ||||||
| Mortgages | $1,022 | $1,255 | ||||
| Construction and development | - | - | ||||
| Other | 1,066 | 864 | ||||
| Residential: | ||||||
| Mortgages | 211 | 159 | ||||
| Homeowner construction | - | - | ||||
| Consumer | 116 | 96 | ||||
| Total | $2,415 | $2,374 | ||||
| Net charge-offs to average loans (annualized) | 0.25 | % | 0.25 | % | ||
| Wealth Management Assets Under Administration | ||||||
| Balance at beginning of period | $3,770,193 | $3,147,649 | ||||
| Net investment (depreciation) appreciation & income | (153,359 | ) | 163,144 | |||
| Net customer cash flows | 42,549 | 5,515 | ||||
| Balance at end of period | $3,659,383 | $3,316,308 | ||||
| * - 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 | |||||||||||||||
| June 30, | Mar. 31, | Dec. 31, | Sept. 30, | June 30, | |||||||||||
| 2010 | 2010 | 2009 | 2009 | 2009 | |||||||||||
| Average Yields (taxable equivalent basis) | |||||||||||||||
| Assets: | |||||||||||||||
| Commercial and other loans | 5.23 | % | 5.31 | % | 5.19 | % | 5.26 | % | 5.37 | % | |||||
| Residential real estate loans, including | |||||||||||||||
| mortgage loans held for sale | 5.05 | % | 5.19 | % | 5.17 | % | 5.22 | % | 5.38 | % | |||||
| Consumer loans | 4.00 | % | 3.99 | % | 4.06 | % | 4.15 | % | 4.19 | % | |||||
| Total loans | 4.97 | % | 5.05 | % | 4.99 | % | 5.06 | % | 5.17 | % | |||||
| Cash, federal funds sold | |||||||||||||||
| and other short-term investments | 0.17 | % | 0.23 | % | 0.19 | % | 0.28 | % | 0.27 | % | |||||
| FHLBB stock | – | % | – | % | – | % | – | % | – | % | |||||
| Taxable debt securities | 3.94 | % | 4.10 | % | 4.10 | % | 4.19 | % | 4.21 | % | |||||
| Nontaxable debt securities | 5.83 | % | 5.89 | % | 5.74 | % | 5.73 | % | 5.80 | % | |||||
| Corporate stocks | 6.23 | % | 6.05 | % | 5.68 | % | 7.02 | % | 5.40 | % | |||||
| Total securities | 4.17 | % | 4.33 | % | 4.30 | % | 4.38 | % | 4.37 | % | |||||
| Total interest-earning assets | 4.64 | % | 4.72 | % | 4.70 | % | 4.76 | % | 4.83 | % | |||||
| Liabilities: | |||||||||||||||
| NOW accounts | 0.12 | % | 0.13 | % | 0.18 | % | 0.19 | % | 0.17 | % | |||||
| Money market accounts | 0.56 | % | 0.61 | % | 0.82 | % | 0.91 | % | 0.98 | % | |||||
| Savings accounts | 0.17 | % | 0.18 | % | 0.22 | % | 0.25 | % | 0.26 | % | |||||
| Time deposits | 1.94 | % | 2.13 | % | 2.52 | % | 2.74 | % | 3.06 | % | |||||
| FHLBB advances | 4.08 | % | 4.26 | % | 4.35 | % | 4.18 | % | 4.11 | % | |||||
| Junior subordinated debentures | 5.44 | % | 7.75 | % | 5.33 | % | 6.56 | % | 5.82 | % | |||||
| Other | 4.63 | % | 4.66 | % | 4.68 | % | 4.71 | % | 4.70 | % | |||||
| Total interest-bearing liabilities | 2.00 | % | 2.17 | % | 2.40 | % | 2.54 | % | 2.66 | % | |||||
| Interest rate spread (taxable equivalent basis) | 2.64 | % | 2.55 | % | 2.30 | % | 2.22 | % | 2.17 | % | |||||
| Net interest margin (taxable equivalent basis) | 2.86 | % | 2.78 | % | 2.56 | % | 2.51 | % | 2.45 | % | |||||
| Washington Trust Bancorp, Inc. and Subsidiaries | ||||||||||||
| SELECTED FINANCIAL HIGHLIGHTS (unaudited) | ||||||||||||
| Period End Balances At | ||||||||||||
| (Dollars in thousands) | 6/30/2010 | 3/31/2010 | 12/31/2009 | 9/30/2009 | 6/30/2009 | |||||||
| Loans | ||||||||||||
| Commercial: | Mortgages | $510,315 | $493,102 | $496,996 | $484,478 | $439,182 | ||||||
| Construction and development | 67,215 | 77,787 | 72,293 | 68,069 | 64,504 | |||||||
| Other | 441,827 | 427,870 | 415,261 | 423,775 | 443,552 | |||||||
| Total commercial | 1,019,357 | 998,759 | 984,550 | 976,322 | 947,238 | |||||||
| Residential: | Mortgages | 610,245 | 597,481 | 593,981 | 595,270 | 606,324 | ||||||
| Homeowner construction | 12,368 | 11,577 | 11,594 | 9,303 | 12,535 | |||||||
| Total residential real estate | 622,613 | 609,058 | 605,575 | 604,573 | 618,859 | |||||||
| Consumer: | Home equity lines | 218,440 | 213,841 | 209,801 | 200,512 | 195,612 | ||||||
| Home equity loans | 57,682 | 59,390 | 62,430 | 66,439 | 70,806 | |||||||
| Other | 54,406 | 56,476 | 57,312 | 58,719 | 58,739 | |||||||
| Total consumer | 330,528 | 329,707 | 329,543 | 325,670 | 325,157 | |||||||
| Total loans | $1,972,498 | $1,937,524 | $1,919,668 | $1,906,565 | $1,891,254 | |||||||
| (Dollars in thousands) | |||||
| At June 30, 2010 | |||||
| Commercial Real Estate Loans by Property Location | Balance | % of Total | |||
| Rhode Island, Connecticut, Massachusetts | $522,627 | 90.5 | % | ||
| New York, New Jersey, Pennsylvania | 41,263 | 7.1 | % | ||
| New Hampshire | 11,930 | 2.1 | % | ||
| Other | 1,710 | 0.3 | % | ||
| Total commercial real estate loans (1) | $577,530 | 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. | |||||
| (Dollars in thousands) | |||||
| At June 30, 2010 | |||||
| Residential Mortgages by Property Location | Balance | % of Total | |||
| Rhode Island, Connecticut, Massachusetts | $579,338 | 93.0 | % | ||
| New York, Virginia, New Jersey, Maryland, Pennsylvania, District of Columbia | 15,250 | 2.4 | % | ||
| Ohio | 11,598 | 1.9 | % | ||
| California, Washington, Oregon | 8,110 | 1.3 | % | ||
| Colorado, Texas, New Mexico, Utah | 4,031 | 0.6 | % | ||
| Georgia | 2,508 | 0.4 | % | ||
| New Hampshire | 1,299 | 0.2 | % | ||
| Other | 479 | 0.2 | % | ||
| Total residential mortgages | $622,613 | 100.0 | % | ||
| Period End Balances At | ||||||||||
| (Dollars in thousands) | 6/30/2010 | 3/31/2010 | 12/31/2009 | 9/30/2009 | 6/30/2009 | |||||
| Deposits | ||||||||||
| Demand deposits | $225,494 | $204,317 | $194,046 | $198,712 | $187,830 | |||||
| NOW accounts | 234,014 | 196,905 | 202,367 | 185,772 | 187,014 | |||||
| Money market accounts | 378,004 | 397,896 | 403,333 | 376,100 | 356,726 | |||||
| Savings accounts | 209,616 | 202,236 | 191,580 | 190,707 | 192,484 | |||||
| Time deposits | 902,777 | 959,834 | 931,684 | 942,879 | 959,666 | |||||
| Total deposits | $1,949,905 | $1,961,188 | $1,923,010 | $1,894,170 | $1,883,720 | |||||
| Out-of-market brokered certificates of deposits | ||||||||||
| included in time deposits | $94,641 | $88,748 | $93,684 | $102,383 | $151,175 | |||||
| In-market deposits, excluding out of market | ||||||||||
| brokered certificates of deposit | $1,855,264 | $1,872,440 | $1,829,326 | $1,791,787 | $1,732,545 | |||||
| Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||
| SELECTED FINANCIAL HIGHLIGHTS (unaudited) | |||||||||
| (Dollars in thousands) | At June 30, 2010 | ||||||||
| Amortized | Unrealized | Unrealized | Fair | ||||||
| Securities Available for Sale | Cost (1) | Gains | Losses | Value | |||||
| Obligations of U.S. government-sponsored enterprises | $56,585 | $4,312 | $ − | $60,897 | |||||
| Mortgage-backed securities issued by U.S. government | |||||||||
| agencies and U.S. government-sponsored enterprises | 464,938 | 25,338 | (110 | ) | 490,166 | ||||
| States and political subdivisions | 79,464 | 3,123 | (118 | ) | 82,469 | ||||
| Trust preferred securities: | |||||||||
| Individual name issuers | 30,582 | − | (7,970 | ) | 22,612 | ||||
| Collateralized debt obligations | 4,504 | − | (3,632 | ) | 872 | ||||
| Corporate bonds | 13,269 | 1,554 | − | 14,823 | |||||
| Common stocks | 659 | 102 | − | 761 | |||||
| Perpetual preferred stocks | 3,354 | 85 | (101 | ) | 3,338 | ||||
| Total securities available for sale | $653,355 | $34,514 | $(11,931 | ) | $675,938 | ||||
| (Dollars in thousands) | At December 31, 2009 | ||||||||
| Amortized | Unrealized | Unrealized | Fair | ||||||
| Securities Available for Sale | Cost (1) | Gains | Losses | Value | |||||
| Obligations of U.S. government-sponsored enterprises | $41,565 | $3,675 | $ − | $45,240 | |||||
| Mortgage-backed securities issued by U.S. government | |||||||||
| agencies and U.S. government-sponsored enterprises | 503,115 | 20,808 | (477 | ) | 523,446 | ||||
| States and political subdivisions | 80,183 | 2,093 | (214 | ) | 82,062 | ||||
| Trust preferred securities: | |||||||||
| Individual name issuers | 30,563 | − | (9,977 | ) | 20,586 | ||||
| Collateralized debt obligations | 4,966 | − | (3,901 | ) | 1,065 | ||||
| Corporate bonds | 13,272 | 1,434 | − | 14,706 | |||||
| Common stocks | 658 | 111 | − | 769 | |||||
| Perpetual preferred stocks | 3,354 | 396 | (140 | ) | 3,610 | ||||
| Total securities available for sale | $677,676 | $28,517 | $(14,709 | ) | $691,484 | ||||
| (1) Net of other-than-temporary impairment losses recognized in earnings. | |||||||||
| Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||
| SELECTED FINANCIAL HIGHLIGHTS (unaudited) | |||||||||||||
| The following is supplemental information concerning trust preferred investment securities: | |||||||||||||
| At June 30, 2010 | |||||||||||||
| Credit Rating | Amortized | Unrealized | Fair | ||||||||||
| (Dollars in thousands) | Moody’s | S&P (b) | Cost (a) | Gains | Losses | Value | |||||||
| Trust preferred securities: | |||||||||||||
| Individual name issuers (c): | |||||||||||||
| JPMorgan Chase & Co. | A2 | BBB+ | $9,719 | $ – | $(2,366 | ) | $7,353 | ||||||
| Bank of America Corporation | Baa3 | BB | 5,730 | – | (1,773 | ) | 3,957 | ||||||
| Wells Fargo & Company | Baa1/Baa2 | A- | 5,104 | – | (1,043 | ) | 4,061 | ||||||
| SunTrust Banks, Inc. | Baa3 | BB | 4,165 | – | (1,226 | ) | 2,939 | ||||||
| Northern Trust Corporation | A3 | A- | 1,980 | – | (357 | ) | 1,623 | ||||||
| State Street Corporation | A3 | BBB+ | 1,968 | – | (426 | ) | 1,542 | ||||||
| Huntington Bancshares Incorporated | Ba1 | B | 1,916 | – | (779 | ) | 1,137 | ||||||
| Total individual name issuers | 30,582 | – | (7,970 | ) | 22,612 | ||||||||
| Collateralized debt obligations (CDO): | |||||||||||||
| Tropic CDO 1, tranche A4L (d) | Ca | 3,221 | – | (2,486 | ) | 735 | |||||||
| Preferred Term Securities | C | 1,283 | – | (1,146 | ) | 137 | |||||||
| Total collateralized debt obligations | 4,504 | – | (3,632 | ) | 872 | ||||||||
| Total trust preferred securities | $35,086 | $ – | $(11,602 | ) | $23,484 | ||||||||
| (a) Net of other-than-temporary impairment losses recognized in earnings | |||||||||||||
| (b) Standard & Poor’s (“S&P”). | |||||||||||||
| (c) Consists of various series of trust preferred securities issued by seven corporate financial institutions. | |||||||||||||
| (d) This investment security is not rated by S&P. As of June 30, 2010, 17 of the 38 pooled institutions have invoked their original contractual right to defer interest payments. This investment security was placed on nonaccrual status as of March 31, 2009. During the quarter ended March 31, 2009, an adverse change occurred in the expected cash flows for this instrument indicating that, based on cash flow forecasts with regard to timing of deferrals and potential future recovery of deferred payments, default rates, and other matters, the Washington Trust would not receive all contractual amounts due under the instrument and would not recover the entire cost basis of the security. Washington Trust had concluded that these conditions warranted a conclusion of other-than-temporary impairment for this holding as of March 31, 2009 and recognized credit-related impairment losses of $1.4 million in earnings in the first quarter of 2009. In April 2010, this investment security began deferring a portion of interest payments. The analysis of the expected cash flows for this security as of June 30, 2010 resulted in an additional credit-related impairment loss of $354 thousand being recognized in earnings in the second quarter of 2010. | |||||||||||||
| (e) This investment security is not rated by S&P. As of June 30, 2010, 20 of the 73 pooled institutions have invoked their original contractual right to defer interest payments. In the fourth quarter of 2008, this investment security began deferring interest payments until future periods. This investment security was placed on nonaccrual status as of December 31, 2008. During the quarter ended September 30, 2009, an adverse change occurred in the expected cash flows for this instrument indicating that, based on cash flow forecasts with regard to timing of deferrals and potential future recovery of deferred payments, default rates, and other matters, Washington Trust would not receive all contractual amounts due under the instrument and would not recover the entire cost basis of the security. Washington Trust had concluded that these conditions warrant a conclusion of other-than-temporary impairment for this holding as of September 30, 2009 and recognized credit-related impairment losses of $467 thousand in earnings in the third quarter of 2009. During the quarter ended December 31, 2009, Washington Trust recognized additional credit-related impairment losses on this security of $679 thousand. The analysis of the expected cash flows for this security as of March 31, 2010 resulted in an additional credit-related impairment loss of $63 thousand being recognized in earnings in the first quarter of 2010. The analysis of the expected cash flows for this security as of June 30, 2010 did not result in further credit-related impairment loss. | |||||||||||||
| Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||
| SELECTED FINANCIAL HIGHLIGHTS (unaudited) | |||||||||||||||
| (Dollars in thousands) | For the Quarters Ended | ||||||||||||||
| June 30, | Mar. 31, | Dec. 31, | Sept. 30, | June 30, | |||||||||||
| Asset Quality Data | 2010 | 2010 | 2009 | 2009 | 2009 | ||||||||||
| Allowance for Loan Losses | |||||||||||||||
| Balance at beginning of period | $27,711 | $27,400 | $26,431 | $26,051 | $24,498 | ||||||||||
| Provision charged to earnings | 1,500 | 1,500 | 2,000 | 1,800 | 3,000 | ||||||||||
| Charge-offs | (1,263 | ) | (1,275 | ) | (1,215 | ) | (1,438 | ) | (1,483 | ) | |||||
| Recoveries | 37 | 86 | 184 | 18 | 36 | ||||||||||
| Balance at end of period | $27,985 | $27,711 | $27,400 | $26,431 | $26,051 | ||||||||||
| Net Loan Charge-Offs | |||||||||||||||
| Commercial: | |||||||||||||||
| Mortgages | $531 | $491 | $333 | $(10 | ) | $794 | |||||||||
| Construction and development | – | – | – | – | – | ||||||||||
| Other | 558 | 508 | 627 | 1,165 | 515 | ||||||||||
| Residential: | |||||||||||||||
| Mortgages | 90 | 121 | 29 | 201 | 127 | ||||||||||
| Homeowner construction | – | – | – | – | – | ||||||||||
| Consumer | 47 | 69 | 42 | 64 | 11 | ||||||||||
| Total | $1,226 | $1,189 | $1,031 | $1,420 | $1,447 | ||||||||||
| Washington Trust Bancorp, Inc. and Subsidiaries | ||||||||||
| SELECTED FINANCIAL HIGHLIGHTS (unaudited) | ||||||||||
| (Dollars in thousands) | ||||||||||
| June 30, | Mar. 31, | Dec. 31, | Sept. 30, | June 30, | ||||||
| Asset Quality Data | 2010 | 2010 | 2009 | 2009 | 2009 | |||||
| Past Due Loans | ||||||||||
| Loans 30–59 Days Past Due | ||||||||||
| Commercial real estate | $3,898 | $2,302 | $1,909 | $4,699 | $2,635 | |||||
| Other commercial loans | 3,284 | 2,362 | 1,831 | 1,496 | 2,255 | |||||
| Residential mortgages | 2,680 | 1,549 | 2,409 | 2,164 | 1,820 | |||||
| Consumer loans | 3,364 | 2,019 | 1,258 | 593 | 1,042 | |||||
| Loans 30–59 days past due | $13,226 | $8,232 | $7,407 | $8,952 | $7,752 | |||||
| Loans 60–89 Days Past Due | ||||||||||
| Commercial real estate | $19 | $2,390 | $1,648 | $400 | $3,537 | |||||
| Other commercial loans | 1,195 | 519 | 292 | 609 | 514 | |||||
| Residential mortgages | 861 | 1,035 | 1,383 | 569 | 1,324 | |||||
| Consumer loans | 195 | 202 | 591 | 39 | 44 | |||||
| Loans 60-89 days past due | $2,270 | $4,146 | $3,914 | $1,617 | $5,419 | |||||
| Loans 90 Days or more Past Due | ||||||||||
| Commercial real estate | $3,695 | $8,374 | $11,227 | $7,972 | $2,760 | |||||
| Other commercial loans | 2,919 | 3,142 | 4,829 | 6,982 | 5,861 | |||||
| Residential mortgages | 5,942 | 5,559 | 4,028 | 4,186 | 3,826 | |||||
| Consumer loans | 634 | 635 | 164 | 300 | 2 | |||||
| Loans 90 days or more past due | $13,190 | $17,710 | $20,248 | $19,440 | $12,449 | |||||
| Total Past Due Loans | ||||||||||
| Commercial real estate | $7,612 | $13,066 | $14,784 | $13,071 | $8,932 | |||||
| Other commercial loans | 7,398 | 6,023 | 6,952 | 9,087 | 8,630 | |||||
| Residential mortgages | 9,483 | 8,143 | 7,820 | 6,919 | 6,970 | |||||
| Consumer loans | 4,193 | 2,856 | 2,013 | 932 | 1,088 | |||||
| Total past due loans | $28,686 | $30,088 | $31,569 | $30,009 | $25,620 | |||||
| Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||
| SELECTED FINANCIAL HIGHLIGHTS (unaudited) | |||||||||||||||
| (Dollars in thousands) | |||||||||||||||
| June 30, | Mar. 31, | Dec. 31, | Sept. 30, | June 30, | |||||||||||
| Asset Quality Data | 2010 | 2010 | 2009 | 2009 | 2009 | ||||||||||
| Nonperforming Assets | |||||||||||||||
| Commercial mortgages | $6,680 | $8,933 | $11,588 | $8,147 | $5,995 | ||||||||||
| Commercial construction and development | – | – | – | – | – | ||||||||||
| Other commercial | 8,418 | 8,225 | 9,075 | 10,903 | 10,948 | ||||||||||
| Residential real estate mortgages | 6,850 | 6,395 | 6,038 | 5,313 | 5,168 | ||||||||||
| Consumer | 789 | 827 | 769 | 850 | 556 | ||||||||||
| Total nonaccrual loans | $22,737 | $24,380 | $27,470 | $25,213 | $22,667 | ||||||||||
| Nonaccrual investment securities | 872 | 1,154 | 1,065 | 1,490 | 1,881 | ||||||||||
| Property acquired through foreclosure or repossession | 2,338 | 1,974 | 1,974 | 1,186 | 236 | ||||||||||
| Total nonperforming assets | $25,947 | $27,508 | $30,509 | $27,889 | $24,784 | ||||||||||
| Total past due loans to total loans | 1.45 | % | 1.55 | % | 1.64 | % | 1.57 | % | 1.35 | % | |||||
| Nonperforming assets to total assets | 0.89 | % | 0.95 | % | 1.06 | % | 0.97 | % | 0.85 | % | |||||
| Nonaccrual loans to total loans | 1.15 | % | 1.26 | % | 1.43 | % | 1.32 | % | 1.20 | % | |||||
| Allowance for loan losses to nonaccrual loans | 123.08 | % | 113.66 | % | 99.75 | % | 104.83 | % | 114.93 | % | |||||
| Allowance for loan losses to total loans | 1.42 | % | 1.43 | % | 1.43 | % | 1.39 | % | 1.38 | % | |||||
| Troubled Debt Restructured Loans | |||||||||||||||
| Accruing troubled debt restructured loans | |||||||||||||||
| Commercial mortgages | $6,176 | $5,813 | $5,566 | $2,107 | $1,576 | ||||||||||
| Other commercial | 2,224 | 1,217 | 540 | 375 | 323 | ||||||||||
| Residential real estate mortgages | 2,234 | 2,622 | 2,736 | 3,520 | 2,190 | ||||||||||
| Consumer | 997 | 1,398 | 858 | 822 | 780 | ||||||||||
| Accruing troubled debt restructured loans | 11,631 | 11,050 | 9,700 | 6,824 | 4,869 | ||||||||||
| Nonaccrual troubled debt restructured loans | |||||||||||||||
| Commercial mortgages | 986 | 2,238 | – | – | – | ||||||||||
| Other commercial | 301 | 247 | 228 | 353 | 136 | ||||||||||
| Residential real estate mortgages | 381 | 887 | 336 | 336 | 367 | ||||||||||
| Consumer | 43 | 44 | 45 | 7 | – | ||||||||||
| Nonaccrual troubled debt restructured loans | 1,711 | 3,416 | 609 | 696 | 503 | ||||||||||
| Total troubled debt restructured loans | $13,342 | $14,466 | $10,309 | $7,520 | $5,372 | ||||||||||
The following tables present average balance and interest rate information. Tax-exempt income is converted to a fully taxable equivalent basis using the statutory federal income tax rate adjusted for applicable state income taxes, net of the related federal tax benefit. For dividends on corporate stocks, the 70% federal dividends received deduction is also used in the calculation of tax equivalency. Unrealized gains (losses) on available for sale securities are excluded from the average balance and yield calculations. Nonaccrual and renegotiated loans, as well as interest earned on these loans (to the extent recognized in the Consolidated Statements of Income) are included in amounts presented for loans.
| Washington Trust Bancorp, Inc. and Subsidiaries | ||||||||||||||
| CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited) | ||||||||||||||
| Three months ended June 30, | 2010 | 2009 | ||||||||||||
| Average | Yield/ | Average | Yield/ | |||||||||||
| (Dollars in thousands) | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||
| Assets | ||||||||||||||
| Commercial and other loans | $1,008,153 | $13,149 | 5.23 | % | $916,329 | $12,270 | 5.37 | % | ||||||
| Residential real estate loans, including | ||||||||||||||
| mortgage loans held for sale | 618,907 | 7,790 | 5.05 | % | 637,633 | 8,550 | 5.38 | % | ||||||
| Consumer loans | 329,562 | 3,289 | 4.00 | % | 323,629 | 3,378 | 4.19 | % | ||||||
| Total loans | 1,956,622 | 24,228 | 4.97 | % | 1,877,591 | 24,198 | 5.17 | % | ||||||
| Cash, federal funds sold | ||||||||||||||
| and other short-term investments | 30,660 | 13 | 0.17 | % | 12,459 | 9 | 0.27 | % | ||||||
| FHLBB stock | 42,008 | – | – | % | 42,008 | – | – | % | ||||||
| Taxable debt securities | 594,673 | 5,837 | 3.94 | % | 723,199 | 7,588 | 4.21 | % | ||||||
| Nontaxable debt securities | 79,467 | 1,154 | 5.83 | % | 80,672 | 1,166 | 5.80 | % | ||||||
| Corporate stocks | 4,862 | 76 | 6.23 | % | 5,600 | 75 | 5.40 | % | ||||||
| Total securities | 679,002 | 7,067 | 4.17 | % | 809,471 | 8,829 | 4.37 | % | ||||||
| Total interest-earning assets | 2,708,292 | 31,308 | 4.64 | % | 2,741,529 | 33,036 | 4.83 | % | ||||||
| Non interest-earning assets | 212,546 | 182,473 | ||||||||||||
| Total assets | $2,920,838 | $2,924,002 | ||||||||||||
| Liabilities and shareholders’ equity | ||||||||||||||
| NOW accounts | $213,045 | $63 | 0.12 | % | $180,969 | $78 | 0.17 | % | ||||||
| Money market accounts | 392,691 | 547 | 0.56 | % | 376,559 | 917 | 0.98 | % | ||||||
| Savings accounts | 205,582 | 85 | 0.17 | % | 188,208 | 123 | 0.26 | % | ||||||
| Time deposits | 957,311 | 4,636 | 1.94 | % | 965,492 | 7,363 | 3.06 | % | ||||||
| FHLBB advances | 589,577 | 6,000 | 4.08 | % | 693,860 | 7,112 | 4.11 | % | ||||||
| Junior subordinated debentures | 32,991 | 447 | 5.44 | % | 32,991 | 479 | 5.82 | % | ||||||
| Other | 21,073 | 243 | 4.63 | % | 20,805 | 244 | 4.70 | % | ||||||
| Total interest-bearing liabilities | 2,412,270 | 12,021 | 2.00 | % | 2,458,884 | 16,316 | 2.66 | % | ||||||
| Demand deposits | 207,271 | 179,350 | ||||||||||||
| Other liabilities | 38,159 | 43,498 | ||||||||||||
| Shareholders’ equity | 263,138 | 242,270 | ||||||||||||
| Total liabilities and shareholders’ equity | $2,920,838 | $2,924,002 | ||||||||||||
| Net interest income (FTE) | $19,287 | $16,720 | ||||||||||||
| Interest rate spread | 2.64 | % | 2.17 | % | ||||||||||
| Net interest margin | 2.86 | % | 2.45 | % | ||||||||||
| Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency: | ||||
| (Dollars in thousands) | ||||
| Three months ended June 30, | 2010 | 2009 | ||
| Commercial and other loans | $48 | $51 | ||
| Nontaxable debt securities | 384 | 388 | ||
| Corporate stocks | 22 | 20 | ||
| Total | $454 | $459 | ||
| Washington Trust Bancorp, Inc. and Subsidiaries | ||||||||||||||
| CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited) | ||||||||||||||
| Six months ended June 30, | 2010 | 2009 | ||||||||||||
| Average | Yield/ | Average | Yield/ | |||||||||||
| (Dollars in thousands) | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||
| Assets | ||||||||||||||
| Commercial and other loans | $997,042 | $26,053 | 5.27 | % | $906,946 | $24,381 | 5.42 | % | ||||||
| Residential real estate loans, including | ||||||||||||||
| mortgage loans held for sale | 617,216 | 15,664 | 5.12 | % | 641,773 | 17,262 | 5.42 | % | ||||||
| Consumer loans | 329,438 | 6,528 | 4.00 | % | 320,946 | 6,745 | 4.24 | % | ||||||
| Total loans | 1,943,696 | 48,245 | 5.01 | % | 1,869,665 | 48,388 | 5.22 | % | ||||||
| Cash, federal funds sold | ||||||||||||||
| and other short-term investments | 33,201 | 34 | 0.20 | % | 19,803 | 26 | 0.26 | % | ||||||
| FHLBB stock | 42,008 | – | – | % | 42,008 | – | – | % | ||||||
| Taxable debt securities | 596,352 | 11,888 | 4.02 | % | 747,087 | 16,037 | 4.33 | % | ||||||
| Nontaxable debt securities | 79,524 | 2,310 | 5.86 | % | 80,674 | 2,332 | 5.83 | % | ||||||
| Corporate stocks | 4,997 | 151 | 6.14 | % | 6,053 | 174 | 5.80 | % | ||||||
| Total securities | 680,873 | 14,349 | 4.25 | % | 833,814 | 18,543 | 4.48 | % | ||||||
| Total interest-earning assets | 2,699,778 | 62,628 | 4.68 | % | 2,765,290 | 66,957 | 4.88 | % | ||||||
| Non interest-earning assets | 208,787 | 178,593 | ||||||||||||
| Total assets | $2,908,565 | $2,943,883 | ||||||||||||
| Liabilities and shareholders’ equity | ||||||||||||||
| NOW accounts | $203,809 | $127 | 0.13 | % | $175,530 | $154 | 0.18 | % | ||||||
| Money market accounts | 400,907 | 1,164 | 0.59 | % | 370,846 | 2,314 | 1.26 | % | ||||||
| Savings accounts | 201,255 | 170 | 0.17 | % | 183,206 | 300 | 0.33 | % | ||||||
| Time deposits | 954,398 | 9,639 | 2.04 | % | 968,367 | 15,260 | 3.18 | % | ||||||
| FHLBB advances | 590,769 | 12,219 | 4.17 | % | 731,311 | 14,339 | 3.95 | % | ||||||
| Junior subordinated debentures | 32,991 | 1,077 | 6.59 | % | 32,991 | 958 | 5.86 | % | ||||||
| Other | 21,030 | 485 | 4.64 | % | 22,153 | 489 | 4.45 | % | ||||||
| Total interest-bearing liabilities | 2,405,159 | 24,881 | 2.09 | % | 2,484,404 | 33,814 | 2.74 | % | ||||||
| Demand deposits | 203,757 | 175,904 | ||||||||||||
| Other liabilities | 38,828 | 43,666 | ||||||||||||
| Shareholders’ equity | 260,821 | 239,909 | ||||||||||||
| Total liabilities and shareholders’ equity | $2,908,565 | $2,943,883 | ||||||||||||
| Net interest income (FTE) | $37,747 | $33,143 | ||||||||||||
| Interest rate spread | 2.59 | % | 2.14 | % | ||||||||||
| Net interest margin | 2.82 | % | 2.42 | % | ||||||||||
| Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency: | ||||
| (Dollars in thousands) | ||||
| Six months ended June 30, | 2010 | 2009 | ||
| Commercial and other loans | $97 | $102 | ||
| Nontaxable debt securities | 771 | 774 | ||
| Corporate stocks | 42 | 47 | ||
| Total | $910 | $923 | ||
| Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||
| SUPPLEMENTAL INFORMATION – Non-GAAP Financial Measures (unaudited) | |||||||||||||||
| At or for the Quarters Ended | |||||||||||||||
| June 30, | Mar. 31, | Dec. 31, | Sept. 30, | June 30, | |||||||||||
| (Dollars in thousands, except per share amounts) | 2010 | 2010 | 2009 | 2009 | 2009 | ||||||||||
| Calculation of tangible book value per share | |||||||||||||||
| Total shareholders’ equity at end of period | $265,411 | $259,529 | $254,946 | $252,146 | $242,293 | ||||||||||
| Less: | |||||||||||||||
| Goodwill | 58,114 | 58,114 | 58,114 | 58,114 | 58,114 | ||||||||||
| Identifiable intangible assets, net | 8,362 | 8,652 | 8,943 | 9,233 | 9,536 | ||||||||||
| Total tangible shareholders’ equity at end of period | $198,935 | $192,763 | $187,889 | $184,799 | $174,643 | ||||||||||
| Shares outstanding at end of period | 16,120.7 | 16,079.1 | 16,042.6 | 16,026.6 | 16,001.9 | ||||||||||
| Book value per share – GAAP | $16.46 | $16.14 | $15.89 | $15.73 | $15.14 | ||||||||||
| Tangible book value per share – Non-GAAP | $12.34 | $11.99 | $11.71 | $11.53 | $10.91 | ||||||||||
| Calculation of tangible equity to tangible assets | |||||||||||||||
| Total tangible shareholders’ equity at end of period | $198,935 | $192,763 | $187,889 | $184,799 | $174,643 | ||||||||||
| Total assets at end of period | $2,929,853 | $2,896,425 | $2,884,473 | $2,888,065 | $2,919,808 | ||||||||||
| Less: | |||||||||||||||
| Goodwill | 58,114 | 58,114 | 58,114 | 58,114 | 58,114 | ||||||||||
| Identifiable intangible assets, net | 8,362 | 8,652 | 8,943 | 9,233 | 9,536 | ||||||||||
| Total tangible assets at end of period | $2,863,377 | $2,829,659 | $2,817,416 | $2,820,718 | $2,852,158 | ||||||||||
| Equity to assets - GAAP | 9.06 | % | 8.96 | % | 8.84 | % | 8.73 | % | 8.30 | % | |||||
| Tangible equity to tangible assets – Non-GAAP | 6.95 | % | 6.81 | % | 6.67 | % | 6.55 | % | 6.12 | % | |||||
| Calculation of return on average tangible assets | |||||||||||||||
| Net income | $5,298 | $5,172 | $4,748 | $4,913 | $3,765 | ||||||||||
| Total average assets | $2,920,838 | $2,896,156 | $2,887,041 | $2,911,110 | $2,924,002 | ||||||||||
| Less: | |||||||||||||||
| Average goodwill | 58,114 | 58,114 | 58,114 | 58,114 | 58,114 | ||||||||||
| Average identifiable intangible assets, net | 8,503 | 8,794 | 9,084 | 9,379 | 9,686 | ||||||||||
| Total average tangible assets | $2,854,221 | $2,829,248 | $2,819,843 | $2,843,617 | $2,856,202 | ||||||||||
| Return on average assets - GAAP | 0.73 | % | 0.71 | % | 0.66 | % | 0.68 | % | 0.52 | % | |||||
| Return on average tangible assets – Non-GAAP | 0.74 | % | 0.73 | % | 0.67 | % | 0.69 | % | 0.53 | % | |||||
| Calculation of return on average tangible equity | |||||||||||||||
| Net income | $5,298 | $5,172 | $4,748 | $4,913 | $3,765 | ||||||||||
| Total average shareholders’ equity | $263,138 | $258,478 | $254,211 | $247,585 | $242,270 | ||||||||||
| Less: | |||||||||||||||
| Average goodwill | 58,114 | 58,114 | 58,114 | 58,114 | 58,114 | ||||||||||
| Average identifiable intangible assets, net | 8,503 | 8,794 | 9,084 | 9,379 | 9,686 | ||||||||||
| Total average tangible shareholders’ equity | $196,521 | $191,570 | $187,013 | $180,092 | $174,470 | ||||||||||
| Return on average shareholders’ equity - GAAP | 8.05 | % | 8.00 | % | 7.47 | % | 7.94 | % | 6.22 | % | |||||
| Return on average tangible shareholders’ equity – Non-GAAP | 10.78 | % | 10.80 | % | 10.16 | % | 10.91 | % | 8.63 | % | |||||
| Washington Trust Bancorp, Inc. and Subsidiaries | ||||||
| SUPPLEMENTAL INFORMATION – Non-GAAP Financial Measures (unaudited) | ||||||
| Six Months Ended | ||||||
| June 30, | June 30, | |||||
| (Dollars in thousands) | 2010 | 2009 | ||||
| Calculation of return on average tangible assets | ||||||
| Net income | $10,470 | $6,435 | ||||
| Total average assets | $2,908,565 | $2,943,883 | ||||
| Less: | ||||||
| Average goodwill | 58,114 | 58,114 | ||||
| Average identifiable intangible assets, net | 8,648 | 9,840 | ||||
| Total average tangible assets | $2,841,803 | $2,875,929 | ||||
| Return on average assets - GAAP | 0.72 | % | 0.44 | % | ||
| Return on average tangible assets – Non-GAAP | 0.74 | % | 0.45 | % | ||
| Calculation of return on average tangible equity | ||||||
| Net income | $10,470 | $6,435 | ||||
| Total average shareholders’ equity | $260,821 | $239,909 | ||||
| Less: | ||||||
| Average goodwill | 58,114 | 58,114 | ||||
| Average identifiable intangible assets, net | 8,648 | 9,840 | ||||
| Total average tangible shareholders’ equity | $194,059 | $171,955 | ||||
| Return on average shareholders’ equity - GAAP | 8.03 | % | 5.36 | % | ||
| Return on average tangible shareholders’ equity – Non-GAAP | 10.79 | % | 7.48 | % | ||
