Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||||||||
(Unaudited; Dollars in thousands) | |||||||||||||||||
Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||||||||
Assets: | |||||||||||||||||
Cash and due from banks | $166,960 | $194,143 | $204,113 | $215,601 | $178,678 | ||||||||||||
Short-term investments | 3,783 | 8,125 | 7,902 | 7,739 | 6,591 | ||||||||||||
Mortgage loans held for sale, at fair value | 77,450 | 61,614 | 68,095 | 43,997 | 49,751 | ||||||||||||
Available for sale debt securities, at fair value | 948,094 | 894,571 | 913,850 | 938,446 | 917,392 | ||||||||||||
Federal Home Loan Bank stock, at cost | 24,772 | 30,285 | 37,469 | 50,017 | 53,576 | ||||||||||||
Loans: | |||||||||||||||||
Total loans | 4,194,666 | 4,195,990 | 4,282,047 | 4,287,641 | 4,090,396 | ||||||||||||
Less: allowance for credit losses on loans | 42,137 | 44,106 | 42,645 | 41,441 | 39,665 | ||||||||||||
Net loans | 4,152,529 | 4,151,884 | 4,239,402 | 4,246,200 | 4,050,731 | ||||||||||||
Premises and equipment, net | 28,953 | 28,870 | 27,711 | 28,067 | 28,543 | ||||||||||||
Operating lease right-of-use assets | 28,761 | 29,521 | 29,861 | 27,022 | 26,098 | ||||||||||||
Investment in bank-owned life insurance | 84,749 | 84,193 | 83,623 | 83,056 | 83,053 | ||||||||||||
Goodwill | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | ||||||||||||
Identifiable intangible assets, net | 6,079 | 6,305 | 6,530 | 6,759 | 6,988 | ||||||||||||
Other assets | 133,350 | 159,749 | 167,327 | 166,147 | 155,669 | ||||||||||||
Total assets | $5,719,389 | $5,713,169 | $5,849,792 | $5,876,960 | $5,620,979 | ||||||||||||
Liabilities: | |||||||||||||||||
Deposits: | |||||||||||||||||
Noninterest-bearing deposits | $932,999 | $832,287 | $840,444 | $815,770 | $622,893 | ||||||||||||
Interest-bearing deposits | 3,616,143 | 3,546,066 | 3,445,249 | 3,285,666 | 3,083,421 | ||||||||||||
Total deposits | 4,549,142 | 4,378,353 | 4,285,693 | 4,101,436 | 3,706,314 | ||||||||||||
Federal Home Loan Bank advances | 466,912 | 593,859 | 713,868 | 1,005,051 | 1,198,534 | ||||||||||||
Payment Protection Program Lending Facility | — | — | 105,746 | 38,900 | — | ||||||||||||
Junior subordinated debentures | 22,681 | 22,681 | 22,681 | 22,681 | 22,681 | ||||||||||||
Operating lease liabilities | 30,974 | 31,717 | 32,012 | 29,125 | 28,184 | ||||||||||||
Other liabilities | 116,081 | 152,364 | 162,099 | 159,604 | 156,669 | ||||||||||||
Total liabilities | 5,185,790 | 5,178,974 | 5,322,099 | 5,356,797 | 5,112,382 | ||||||||||||
Shareholders’ Equity: | |||||||||||||||||
Common stock | 1,085 | 1,085 | 1,085 | 1,085 | 1,085 | ||||||||||||
Paid-in capital | 124,882 | 125,610 | 124,768 | 123,684 | 123,167 | ||||||||||||
Retained earnings | 429,598 | 418,246 | 408,773 | 399,386 | 387,243 | ||||||||||||
Accumulated other comprehensive (loss) income | (20,006) | (7,391) | (3,403) | (462) | 929 | ||||||||||||
Treasury stock, at cost | (1,960) | (3,355) | (3,530) | (3,530) | (3,827) | ||||||||||||
Total shareholders’ equity | 533,599 | 534,195 | 527,693 | 520,163 | 508,597 | ||||||||||||
Total liabilities and shareholders’ equity | $5,719,389 | $5,713,169 | $5,849,792 | $5,876,960 | $5,620,979 |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||
(Unaudited; Dollars and shares in thousands, except per share amounts) | |||||||||||||||||
For the Three Months Ended | |||||||||||||||||
Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||||||||
Interest income: | |||||||||||||||||
Interest and fees on loans | $34,159 | $34,487 | $34,925 | $36,005 | $40,008 | ||||||||||||
Interest on mortgage loans held for sale | 441 | 569 | 468 | 440 | 285 | ||||||||||||
Taxable interest on debt securities | 3,242 | 3,869 | 4,870 | 5,477 | 5,834 | ||||||||||||
Dividends on Federal Home Loan Bank stock | 133 | 414 | 532 | 654 | 640 | ||||||||||||
Other interest income | 33 | 35 | 39 | 36 | 349 | ||||||||||||
Total interest and dividend income | 38,008 | 39,374 | 40,834 | 42,612 | 47,116 | ||||||||||||
Interest expense: | |||||||||||||||||
Deposits | 3,663 | 4,632 | 5,532 | 7,112 | 8,536 | ||||||||||||
Federal Home Loan Bank advances | 1,380 | 2,305 | 3,354 | 4,382 | 5,765 | ||||||||||||
Junior subordinated debentures | 94 | 122 | 135 | 171 | 213 | ||||||||||||
Other interest expense | — | 72 | 159 | 2 | — | ||||||||||||
Total interest expense | 5,137 | 7,131 | 9,180 | 11,667 | 14,514 | ||||||||||||
Net interest income | 32,871 | 32,243 | 31,654 | 30,945 | 32,602 | ||||||||||||
Provision for credit losses | (2,000) | 1,781 | 1,325 | 2,200 | 7,036 | ||||||||||||
Net interest income after provision for credit losses | 34,871 | 30,462 | 30,329 | 28,745 | 25,566 | ||||||||||||
Noninterest income: | |||||||||||||||||
Wealth management revenues | 9,895 | 9,206 | 8,954 | 8,605 | 8,689 | ||||||||||||
Mortgage banking revenues | 11,927 | 14,077 | 12,353 | 14,851 | 6,096 | ||||||||||||
Card interchange fees | 1,133 | 1,148 | 1,161 | 1,031 | 947 | ||||||||||||
Service charges on deposit accounts | 609 | 767 | 598 | 517 | 860 | ||||||||||||
Loan related derivative income | 467 | 173 | 1,264 | 99 | 2,455 | ||||||||||||
Income from bank-owned life insurance | 556 | 569 | 567 | 791 | 564 | ||||||||||||
Other income | 1,387 | 1,787 | 571 | 426 | 316 | ||||||||||||
Total noninterest income | 25,974 | 27,727 | 25,468 | 26,320 | 19,927 | ||||||||||||
Noninterest expense: | |||||||||||||||||
Salaries and employee benefits | 21,527 | 22,075 | 21,892 | 19,464 | 19,468 | ||||||||||||
Outsourced services | 3,200 | 2,950 | 3,160 | 2,784 | 3,000 | ||||||||||||
Net occupancy | 2,128 | 2,083 | 2,012 | 1,909 | 2,019 | ||||||||||||
Equipment | 994 | 1,025 | 934 | 895 | 977 | ||||||||||||
Legal, audit and professional fees | 597 | 1,014 | 1,252 | 659 | 822 | ||||||||||||
FDIC deposit insurance costs | 345 | 330 | 392 | 674 | 422 | ||||||||||||
Advertising and promotion | 222 | 640 | 384 | 186 | 259 | ||||||||||||
Amortization of intangibles | 226 | 226 | 228 | 230 | 230 | ||||||||||||
Debt prepayment penalties | 3,335 | 1,413 | — | — | — | ||||||||||||
Other expenses | 2,139 | 2,353 | 2,090 | 1,677 | 3,256 | ||||||||||||
Total noninterest expense | 34,713 | 34,109 | 32,344 | 28,478 | 30,453 | ||||||||||||
Income before income taxes | 26,132 | 24,080 | 23,453 | 26,587 | 15,040 | ||||||||||||
Income tax expense | 5,661 | 5,514 | 5,131 | 5,547 | 3,139 | ||||||||||||
Net income | $20,471 | $18,566 | $18,322 | $21,040 | $11,901 | ||||||||||||
Net income available to common shareholders | $20,415 | $18,524 | $18,285 | $21,000 | $11,869 | ||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||
Basic | 17,275 | 17,264 | 17,260 | 17,257 | 17,345 | ||||||||||||
Diluted | 17,431 | 17,360 | 17,317 | 17,292 | 17,441 | ||||||||||||
Earnings per common share: | |||||||||||||||||
Basic | $1.18 | $1.07 | $1.06 | $1.22 | $0.68 | ||||||||||||
Diluted | $1.17 | $1.07 | $1.06 | $1.21 | $0.68 | ||||||||||||
Cash dividends declared per share | $0.52 | $0.52 | $0.51 | $0.51 | $0.51 |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||
SELECTED FINANCIAL HIGHLIGHTS | |||||||||||||||||
(Unaudited; Dollars and shares in thousands, except per share amounts) | |||||||||||||||||
Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||||||||
Share and Equity Related Data: | |||||||||||||||||
Book value per share | $30.83 | $30.94 | $30.57 | $30.14 | $29.48 | ||||||||||||
Tangible book value per share - Non-GAAP (1) | $26.79 | $26.87 | $26.49 | $26.04 | $25.37 | ||||||||||||
Market value per share | $51.63 | $44.80 | $30.66 | $32.75 | $36.56 | ||||||||||||
Shares issued at end of period | 17,363 | 17,363 | 17,363 | 17,363 | 17,363 | ||||||||||||
Shares outstanding at end of period | 17,306 | 17,265 | 17,260 | 17,260 | 17,252 | ||||||||||||
Capital Ratios (2): | |||||||||||||||||
Tier 1 risk-based capital | 12.99 | % | 12.61 | % | 12.23 | % | 11.95 | % | 11.62 | % | |||||||
Total risk-based capital | 13.85 | % | 13.51 | % | 13.09 | % | 12.78 | % | 12.42 | % | |||||||
Tier 1 leverage ratio | 9.11 | % | 8.95 | % | 8.77 | % | 8.42 | % | 8.77 | % | |||||||
Common equity tier 1 | 12.43 | % | 12.06 | % | 11.69 | % | 11.40 | % | 11.08 | % | |||||||
Balance Sheet Ratios: | |||||||||||||||||
Equity to assets | 9.33 | % | 9.35 | % | 9.02 | % | 8.85 | % | 9.05 | % | |||||||
Tangible equity to tangible assets - Non-GAAP (1) | 8.21 | % | 8.22 | % | 7.91 | % | 7.74 | % | 7.89 | % | |||||||
Loans to deposits (3) | 93.0 | % | 96.2 | % | 100.5 | % | 104.6 | % | 110.6 | % |
For the Three Months Ended | |||||||||||||||||
Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||||||||
Performance Ratios (4): | |||||||||||||||||
Net interest margin (5) | 2.51 | % | 2.39 | % | 2.31 | % | 2.31 | % | 2.61 | % | |||||||
Return on average assets (net income divided by average assets) | 1.45 | % | 1.28 | % | 1.24 | % | 1.46 | % | 0.89 | % | |||||||
Return on average tangible assets - Non-GAAP (1) | 1.47 | % | 1.30 | % | 1.26 | % | 1.48 | % | 0.90 | % | |||||||
Return on average equity (net income available for common shareholders divided by average equity) | 15.55 | % | 13.96 | % | 13.99 | % | 16.51 | % | 9.49 | % | |||||||
Return on average tangible equity - Non-GAAP (1) | 17.91 | % | 16.10 | % | 16.19 | % | 19.15 | % | 11.05 | % | |||||||
Efficiency ratio (6) | 59.0 | % | 56.9 | % | 56.6 | % | 49.7 | % | 58.0 | % |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||
SELECTED FINANCIAL HIGHLIGHTS | |||||||||||||||||
(Unaudited; Dollars in thousands) | |||||||||||||||||
For the Three Months Ended | |||||||||||||||||
Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||||||||
Wealth Management Results | |||||||||||||||||
Wealth Management Revenues: | |||||||||||||||||
Asset-based revenues | $9,583 | $9,066 | $8,786 | $8,156 | $8,355 | ||||||||||||
Transaction-based revenues | 312 | 140 | 168 | 449 | 334 | ||||||||||||
Total wealth management revenues | $9,895 | $9,206 | $8,954 | $8,605 | $8,689 | ||||||||||||
Assets Under Administration (AUA): | |||||||||||||||||
Balance at beginning of period | $6,866,737 | $6,395,652 | $6,138,845 | $5,337,733 | $6,235,801 | ||||||||||||
Net investment appreciation (depreciation) & income | 208,953 | 540,189 | 335,209 | 671,602 | (772,735) | ||||||||||||
Net client asset (outflows) inflows | (26,464) | (69,104) | (78,402) | 129,510 | (125,333) | ||||||||||||
Balance at end of period | $7,049,226 | $6,866,737 | $6,395,652 | $6,138,845 | $5,337,733 | ||||||||||||
Percentage of AUA that are managed assets | 91% | 91% | 90% | 90% | 89% | ||||||||||||
Mortgage Banking Results | |||||||||||||||||
Mortgage Banking Revenues: | |||||||||||||||||
Realized gains on loan sales, net (1) | $13,745 | $13,394 | $14,280 | $10,646 | $3,688 | ||||||||||||
Unrealized (losses) gains, net (2) | (1,888) | 813 | (1,555) | 4,415 | 2,325 | ||||||||||||
Loan servicing fee income, net (3) | 70 | (130) | (372) | (210) | 83 | ||||||||||||
Total mortgage banking revenues | $11,927 | $14,077 | $12,353 | $14,851 | $6,096 | ||||||||||||
Residential Mortgage Loan Originations: | |||||||||||||||||
Originations for retention in portfolio (4) | $131,791 | $134,002 | $132,726 | $126,894 | $108,498 | ||||||||||||
Originations for sale to secondary market (5) | 309,325 | 312,226 | 377,137 | 299,321 | 183,222 | ||||||||||||
Total mortgage loan originations | $441,116 | $446,228 | $509,863 | $426,215 | $291,720 | ||||||||||||
Residential Mortgage Loans Sold: | |||||||||||||||||
Sold with servicing rights retained | $226,645 | $240,104 | $317,920 | $246,945 | $44,498 | ||||||||||||
Sold with servicing rights released (5) | 65,374 | 78,072 | 36,250 | 58,279 | 117,693 | ||||||||||||
Total mortgage loans sold | $292,019 | $318,176 | $354,170 | $305,224 | $162,191 |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||
END OF PERIOD LOAN COMPOSITION | |||||||||||||||||
(Unaudited; Dollars in thousands) | |||||||||||||||||
Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||||||||
Loans: | |||||||||||||||||
Commercial real estate (1) | $1,618,540 | $1,633,024 | $1,665,745 | $1,630,998 | $1,618,020 | ||||||||||||
Commercial & industrial | 840,585 | 817,408 | 822,269 | 852,445 | 655,157 | ||||||||||||
Total commercial | 2,459,125 | 2,450,432 | 2,488,014 | 2,483,443 | 2,273,177 | ||||||||||||
Residential real estate (2) | 1,457,490 | 1,467,312 | 1,506,726 | 1,508,223 | 1,510,472 | ||||||||||||
Home equity | 256,799 | 259,185 | 268,551 | 277,632 | 287,134 | ||||||||||||
Other | 21,252 | 19,061 | 18,756 | 18,343 | 19,613 | ||||||||||||
Total consumer | 278,051 | 278,246 | 287,307 | 295,975 | 306,747 | ||||||||||||
Total loans | $4,194,666 | $4,195,990 | $4,282,047 | $4,287,641 | $4,090,396 |
March 31, 2021 | December 31, 2020 | ||||||||||||||||||||||
Count | Balance | % of Total | Count | Balance | % of Total | ||||||||||||||||||
Commercial Real Estate Portfolio Segmentation: | |||||||||||||||||||||||
Multi-family dwelling | 135 | $506,813 | 31 | % | 137 | $524,874 | 32 | % | |||||||||||||||
Retail | 131 | 345,679 | 21 | 136 | 339,569 | 21 | |||||||||||||||||
Office | 74 | 292,087 | 18 | 73 | 290,756 | 18 | |||||||||||||||||
Hospitality | 39 | 168,094 | 10 | 40 | 157,720 | 10 | |||||||||||||||||
Healthcare | 15 | 116,779 | 7 | 15 | 109,321 | 7 | |||||||||||||||||
Industrial and warehouse | 23 | 77,537 | 5 | 28 | 97,055 | 6 | |||||||||||||||||
Commercial mixed use | 20 | 41,702 | 3 | 22 | 42,405 | 3 | |||||||||||||||||
Other | 37 | 69,849 | 5 | 38 | 71,324 | 3 | |||||||||||||||||
Commercial real estate loans | 474 | $1,618,540 | 100 | % | 489 | $1,633,024 | 100 | % | |||||||||||||||
Commercial & Industrial Portfolio Segmentation: | |||||||||||||||||||||||
Healthcare and social assistance | 299 | $196,555 | 23 | % | 253 | $200,217 | 24 | % | |||||||||||||||
Manufacturing | 161 | 89,118 | 11 | 146 | 88,802 | 11 | |||||||||||||||||
Owner occupied and other real estate | 277 | 76,704 | 9 | 268 | 74,309 | 9 | |||||||||||||||||
Accommodation and food services | 359 | 69,380 | 8 | 271 | 47,020 | 6 | |||||||||||||||||
Educational services | 65 | 67,694 | 8 | 53 | 64,969 | 8 | |||||||||||||||||
Retail | 201 | 57,128 | 7 | 192 | 63,895 | 8 | |||||||||||||||||
Professional, scientific and technical | 277 | 39,957 | 5 | 265 | 39,295 | 5 | |||||||||||||||||
Finance and insurance | 90 | 31,185 | 4 | 106 | 26,244 | 3 | |||||||||||||||||
Entertainment and recreation | 112 | 30,241 | 4 | 91 | 29,415 | 4 | |||||||||||||||||
Information | 36 | 29,005 | 3 | 32 | 28,394 | 3 | |||||||||||||||||
Transportation and warehousing | 46 | 23,727 | 3 | 42 | 24,061 | 3 | |||||||||||||||||
Public administration | 24 | 19,700 | 2 | 26 | 23,319 | 3 | |||||||||||||||||
Other | 919 | 110,191 | 13 | 772 | 107,468 | 13 | |||||||||||||||||
Commercial & industrial loans | 2,866 | $840,585 | 100 | % | 2,517 | $817,408 | 100 | % |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||||||||
SUPPLEMENTAL LOAN PORTFOLIO INFORMATION | |||||||||||||||||||||||
(Unaudited; Dollars in thousands) | |||||||||||||||||||||||
March 31, 2021 | April 16, 2021 | ||||||||||||||||||||||
Count | Balance | % of Outstanding Balance, excl PPP loans (1) | Count | Balance | % of Outstanding Balance, excl PPP loans (1) | ||||||||||||||||||
Loan Deferments by Portfolio: | |||||||||||||||||||||||
Commercial Real Estate Deferments by Segment: | |||||||||||||||||||||||
Hospitality | 16 | $69,406 | 41 | % | 12 | $51,357 | 31 | % | |||||||||||||||
Retail | 3 | 20,600 | 6 | 3 | 20,600 | 6 | |||||||||||||||||
Healthcare | 1 | 18,345 | 16 | 1 | 18,385 | 16 | |||||||||||||||||
Office | 1 | 1,833 | 1 | 1 | 1,833 | 1 | |||||||||||||||||
Other | 7 | 27,749 | 40 | 7 | 27,749 | 40 | |||||||||||||||||
Subtotal - commercial real estate deferments | 28 | 137,933 | 9 | 24 | 119,924 | 7 | |||||||||||||||||
Commercial & Industrial Deferments by Segment: | |||||||||||||||||||||||
Healthcare and social assistance | 5 | 19,855 | 13 | 3 | 12,949 | 9 | |||||||||||||||||
Transportation and warehousing | 3 | 814 | 4 | — | — | — | |||||||||||||||||
Entertainment and recreation | 2 | 424 | 2 | — | — | — | |||||||||||||||||
Owner occupied and other real estate | 1 | 326 | 1 | — | — | — | |||||||||||||||||
Accommodation and food services | 1 | 304 | 1 | 1 | 304 | 1 | |||||||||||||||||
Other | 5 | 7,693 | 12 | — | — | — | |||||||||||||||||
Subtotal - commercial & industrial deferments | 17 | 29,416 | 5 | 4 | 13,253 | 2 | |||||||||||||||||
Total commercial deferments | 45 | 167,349 | 8 | 28 | 133,177 | 6 | |||||||||||||||||
Residential real estate deferments | 38 | 23,350 | 2 | 26 | 15,813 | 1 | |||||||||||||||||
Consumer deferments | 5 | 687 | — | 5 | 687 | — | |||||||||||||||||
Total loan deferments | 88 | $191,386 | 5 | % | 59 | $149,677 | 4 | % | |||||||||||||||
March 31, 2021 | December 31, 2020 | ||||||||||||||||||||||
Count | Balance | % of Total | Count | Balance | % of Total | ||||||||||||||||||
PPP Loans By Industry: | |||||||||||||||||||||||
Accommodation and food services | 299 | $46,873 | 21 | % | 209 | $23,678 | 12 | % | |||||||||||||||
Healthcare and social assistance | 224 | 44,902 | 20 | 173 | 47,354 | 24 | |||||||||||||||||
Manufacturing | 100 | 22,564 | 10 | 89 | 23,321 | 12 | |||||||||||||||||
Professional, scientific and technical | 235 | 21,444 | 9 | 220 | 20,031 | 10 | |||||||||||||||||
Retail | 143 | 12,209 | 5 | 134 | 12,107 | 6 | |||||||||||||||||
Educational services | 43 | 11,243 | 5 | 32 | 9,681 | 5 | |||||||||||||||||
Owner occupied and other real estate | 123 | 9,658 | 4 | 115 | 9,241 | 5 | |||||||||||||||||
Entertainment and recreation | 85 | 4,797 | 2 | 61 | 3,386 | 2 | |||||||||||||||||
Information | 24 | 3,325 | 1 | 20 | 2,478 | 1 | |||||||||||||||||
Transportation and warehousing | 23 | 2,088 | 1 | 21 | 2,059 | 1 | |||||||||||||||||
Finance and insurance | 37 | 1,102 | — | 55 | 2,000 | 1 | |||||||||||||||||
Public administration | 5 | 421 | — | 4 | 483 | — | |||||||||||||||||
Other | 724 | 47,957 | 22 | 573 | 43,961 | 21 | |||||||||||||||||
Total PPP loans (included in the commercial & industrial loan portfolio) | 2,065 | $228,583 | 100 | % | 1,706 | $199,780 | 100 | % | |||||||||||||||
Average PPP loan size | $111 | $117 | |||||||||||||||||||||
Net unamortized fees on PPP loans | $5,747 | $3,893 |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||
END OF PERIOD LOAN AND DEPOSIT COMPOSITION | |||||||||||||||||
(Unaudited; Dollars in thousands) | |||||||||||||||||
March 31, 2021 | December 31, 2020 | ||||||||||||||||
Balance | % of Total | Balance | % of Total | ||||||||||||||
Commercial Real Estate Loans by Property Location: | |||||||||||||||||
Connecticut | $641,757 | 40 | % | $649,919 | 40 | % | |||||||||||
Massachusetts | 456,379 | 28 | 468,947 | 29 | |||||||||||||
Rhode Island | 435,779 | 27 | 431,133 | 26 | |||||||||||||
Subtotal | 1,533,915 | 95 | 1,549,999 | 95 | |||||||||||||
All other states | 84,625 | 5 | 83,025 | 5 | |||||||||||||
Total commercial real estate loans | $1,618,540 | 100 | % | $1,633,024 | 100 | % | |||||||||||
Residential Real Estate Loans by Property Location: | |||||||||||||||||
Massachusetts | $985,925 | 68 | % | $994,800 | 68 | % | |||||||||||
Rhode Island | 332,846 | 23 | 331,713 | 23 | |||||||||||||
Connecticut | 117,068 | 8 | 122,102 | 8 | |||||||||||||
Subtotal | 1,435,839 | 99 | 1,448,615 | 99 | |||||||||||||
All other states | 21,651 | 1 | 18,697 | 1 | |||||||||||||
Total residential real estate loans | $1,457,490 | 100 | % | $1,467,312 | 100 | % |
Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||||||||
Deposits: | |||||||||||||||||
Noninterest-bearing demand deposits | $932,999 | $832,287 | $840,444 | $815,770 | $622,893 | ||||||||||||
Interest-bearing demand deposits | 171,571 | 174,290 | 170,198 | 158,343 | 178,391 | ||||||||||||
NOW accounts | 745,376 | 698,706 | 644,909 | 617,792 | 528,650 | ||||||||||||
Money market accounts | 950,413 | 910,167 | 877,536 | 834,954 | 784,893 | ||||||||||||
Savings accounts | 511,759 | 466,507 | 439,383 | 417,195 | 382,509 | ||||||||||||
Time deposits (in-market) | 701,524 | 704,855 | 729,058 | 728,801 | 776,992 | ||||||||||||
In-market deposits | 4,013,642 | 3,786,812 | 3,701,528 | 3,572,855 | 3,274,328 | ||||||||||||
Wholesale brokered time deposits | 535,500 | 591,541 | 584,165 | 528,581 | 431,986 | ||||||||||||
Total deposits | $4,549,142 | $4,378,353 | $4,285,693 | $4,101,436 | $3,706,314 |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||
CREDIT & ASSET QUALITY DATA | |||||||||||||||||
(Unaudited; Dollars in thousands) | |||||||||||||||||
Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||||||||
Asset Quality Ratios: | |||||||||||||||||
Nonperforming assets to total assets | 0.23 | % | 0.23 | % | 0.25 | % | 0.27 | % | 0.32 | % | |||||||
Nonaccrual loans to total loans | 0.31 | % | 0.31 | % | 0.34 | % | 0.37 | % | 0.44 | % | |||||||
Total past due loans to total loans | 0.26 | % | 0.30 | % | 0.24 | % | 0.34 | % | 0.40 | % | |||||||
Allowance for credit losses on loans to nonaccrual loans | 324.56 | % | 334.21 | % | 289.31 | % | 258.73 | % | 221.37 | % | |||||||
Allowance for credit losses on loans to total loans | 1.00 | % | 1.05 | % | 1.00 | % | 0.97 | % | 0.97 | % | |||||||
Nonperforming Assets: | |||||||||||||||||
Commercial real estate | $— | $— | $431 | $431 | $450 | ||||||||||||
Commercial & industrial | — | — | — | — | 290 | ||||||||||||
Total commercial | — | — | 431 | 431 | 740 | ||||||||||||
Residential real estate | 11,748 | 11,981 | 12,792 | 13,850 | 15,423 | ||||||||||||
Home equity | 1,147 | 1,128 | 1,429 | 1,648 | 1,667 | ||||||||||||
Other consumer | 88 | 88 | 88 | 88 | 88 | ||||||||||||
Total consumer | 1,235 | 1,216 | 1,517 | 1,736 | 1,755 | ||||||||||||
Total nonaccrual loans | 12,983 | 13,197 | 14,740 | 16,017 | 17,918 | ||||||||||||
Other real estate owned | — | — | — | — | 28 | ||||||||||||
Total nonperforming assets | $12,983 | $13,197 | $14,740 | $16,017 | $17,946 | ||||||||||||
Past Due Loans (30 days or more past due): | |||||||||||||||||
Commercial real estate | $— | $265 | $431 | $431 | $1,275 | ||||||||||||
Commercial & industrial | 1 | 3 | 21 | 3 | 310 | ||||||||||||
Total commercial | 1 | 268 | 452 | 434 | 1,585 | ||||||||||||
Residential real estate | 9,661 | 10,339 | 8,081 | 12,499 | 12,293 | ||||||||||||
Home equity | 1,131 | 1,667 | 1,753 | 1,633 | 2,482 | ||||||||||||
Other consumer | 119 | 118 | 108 | 106 | 115 | ||||||||||||
Total consumer | 1,250 | 1,785 | 1,861 | 1,739 | 2,597 | ||||||||||||
Total past due loans | $10,912 | $12,392 | $10,394 | $14,672 | $16,475 | ||||||||||||
Accruing loans 90 days or more past due | $— | $— | $— | $— | $— | ||||||||||||
Nonaccrual loans included in past due loans | $8,356 | $8,521 | $8,799 | $10,553 | $11,385 | ||||||||||||
Troubled Debt Restructurings: | |||||||||||||||||
Accruing TDRs | $12,358 | $13,340 | $5,709 | $5,473 | $373 | ||||||||||||
Nonaccrual TDRs | 1,935 | 2,345 | 2,894 | 998 | 490 | ||||||||||||
Total TDRs | $14,293 | $15,685 | $8,603 | $6,471 | $863 |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||
CREDIT & ASSET QUALITY DATA | |||||||||||||||||
(Unaudited; Dollars in thousands) | |||||||||||||||||
For the Three Months Ended | |||||||||||||||||
Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||||||||
Nonaccrual Loan Activity: | |||||||||||||||||
Balance at beginning of period | $13,197 | $14,740 | $16,017 | $17,918 | $17,408 | ||||||||||||
Additions to nonaccrual status | 734 | 707 | 971 | 237 | 1,729 | ||||||||||||
Loans returned to accruing status | (3) | (1,112) | (1,623) | (154) | (393) | ||||||||||||
Loans charged-off | (64) | (246) | (111) | (325) | (635) | ||||||||||||
Loans transferred to other real estate owned | — | (285) | — | — | (28) | ||||||||||||
Payments, payoffs and other changes | (881) | (607) | (514) | (1,659) | (163) | ||||||||||||
Balance at end of period | $12,983 | $13,197 | $14,740 | $16,017 | $17,918 | ||||||||||||
Allowance for Credit Losses on Loans: | |||||||||||||||||
Balance at beginning of period | $44,106 | $42,645 | $41,441 | $39,665 | $27,014 | ||||||||||||
Adoption of CECL accounting standard (Topic 326) | — | — | — | — | 6,501 | ||||||||||||
Provision for credit losses on loans (1) | (1,951) | 1,579 | 1,300 | 2,084 | 6,773 | ||||||||||||
Charge-offs | (64) | (245) | (111) | (326) | (635) | ||||||||||||
Recoveries | 46 | 127 | 15 | 18 | 12 | ||||||||||||
Balance at end of period | $42,137 | $44,106 | $42,645 | $41,441 | $39,665 | ||||||||||||
Allowance for Credit Losses on Unfunded Commitments: | |||||||||||||||||
Balance at beginning of period | $2,382 | $2,180 | $2,155 | $2,039 | $293 | ||||||||||||
Adoption of CECL accounting standard (Topic 326) | — | — | — | — | 1,483 | ||||||||||||
Provision for credit losses on unfunded commitments (1) | (49) | 202 | 25 | 116 | 263 | ||||||||||||
Balance at end of period (2) | $2,333 | $2,382 | $2,180 | $2,155 | $2,039 |
For the Three Months Ended | |||||||||||||||||
Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||||||||
Net Loan Charge-Offs (Recoveries): | |||||||||||||||||
Commercial real estate | $— | $133 | $— | $19 | $153 | ||||||||||||
Commercial & industrial | 1 | (12) | — | 284 | 290 | ||||||||||||
Total commercial | 1 | 121 | — | 303 | 443 | ||||||||||||
Residential real estate | 17 | (20) | 99 | — | — | ||||||||||||
Home equity | (2) | 9 | (4) | (5) | 172 | ||||||||||||
Other consumer | 2 | 8 | 1 | 10 | 8 | ||||||||||||
Total consumer | — | 17 | (3) | 5 | 180 | ||||||||||||
Total | $18 | $118 | $96 | $308 | $623 | ||||||||||||
Net charge-offs to average loans (annualized) | — | % | 0.01 | % | 0.01 | % | 0.03 | % | 0.06 | % |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||||||||||||||||||||
CONSOLIDATED AVERAGE BALANCE SHEETS (FTE Basis) | |||||||||||||||||||||||||||||||||||
(Unaudited; Dollars in thousands) | |||||||||||||||||||||||||||||||||||
For the Three Months Ended | March 31, 2021 | December 31, 2020 | Quarter Change | ||||||||||||||||||||||||||||||||
Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | |||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||
Cash, federal funds sold and short-term investments | $154,895 | $33 | 0.09 | % | $172,731 | $35 | 0.08 | % | ($17,836) | ($2) | 0.01 | % | |||||||||||||||||||||||
Mortgage loans held for sale | 61,408 | 441 | 2.91 | 71,113 | 569 | 3.18 | (9,705) | (128) | (0.27) | ||||||||||||||||||||||||||
Taxable debt securities | 915,864 | 3,242 | 1.44 | 892,112 | 3,869 | 1.73 | 23,752 | (627) | (0.29) | ||||||||||||||||||||||||||
FHLB stock | 28,867 | 133 | 1.87 | 33,320 | 414 | 4.94 | (4,453) | (281) | (3.07) | ||||||||||||||||||||||||||
Commercial real estate | 1,625,859 | 11,359 | 2.83 | 1,658,809 | 11,905 | 2.86 | (32,950) | (546) | (0.03) | ||||||||||||||||||||||||||
Commercial & industrial | 839,740 | 7,866 | 3.80 | 818,611 | 7,174 | 3.49 | 21,129 | 692 | 0.31 | ||||||||||||||||||||||||||
Total commercial | 2,465,599 | 19,225 | 3.16 | 2,477,420 | 19,079 | 3.06 | (11,821) | 146 | 0.10 | ||||||||||||||||||||||||||
Residential real estate | 1,454,323 | 12,817 | 3.57 | 1,475,699 | 13,206 | 3.56 | (21,376) | (389) | 0.01 | ||||||||||||||||||||||||||
Home equity | 257,733 | 2,122 | 3.34 | 264,811 | 2,229 | 3.35 | (7,078) | (107) | (0.01) | ||||||||||||||||||||||||||
Other | 20,106 | 241 | 4.86 | 18,209 | 226 | 4.94 | 1,897 | 15 | (0.08) | ||||||||||||||||||||||||||
Total consumer | 277,839 | 2,363 | 3.45 | 283,020 | 2,455 | 3.45 | (5,181) | (92) | — | ||||||||||||||||||||||||||
Total loans | 4,197,761 | 34,405 | 3.32 | 4,236,139 | 34,740 | 3.26 | (38,378) | (335) | 0.06 | ||||||||||||||||||||||||||
Total interest-earning assets | 5,358,795 | 38,254 | 2.90 | 5,405,415 | 39,627 | 2.92 | (46,620) | (1,373) | (0.02) | ||||||||||||||||||||||||||
Noninterest-earning assets | 353,136 | 362,848 | (9,712) | ||||||||||||||||||||||||||||||||
Total assets | $5,711,931 | $5,768,263 | ($56,332) | ||||||||||||||||||||||||||||||||
Liabilities and Shareholders' Equity: | |||||||||||||||||||||||||||||||||||
Interest-bearing demand deposits | $183,989 | $96 | 0.21 | % | $161,664 | $81 | 0.20 | % | $22,325 | $15 | 0.01 | % | |||||||||||||||||||||||
NOW accounts | 697,964 | 102 | 0.06 | 664,055 | 115 | 0.07 | 33,909 | (13) | (0.01) | ||||||||||||||||||||||||||
Money market accounts | 909,890 | 714 | 0.32 | 903,607 | 963 | 0.42 | 6,283 | (249) | (0.10) | ||||||||||||||||||||||||||
Savings accounts | 489,851 | 69 | 0.06 | 455,933 | 70 | 0.06 | 33,918 | (1) | — | ||||||||||||||||||||||||||
Time deposits (in-market) | 703,580 | 2,238 | 1.29 | 711,838 | 2,566 | 1.43 | (8,258) | (328) | (0.14) | ||||||||||||||||||||||||||
Total interest-bearing in-market deposits | 2,985,274 | 3,219 | 0.44 | 2,897,097 | 3,795 | 0.52 | 88,177 | (576) | (0.08) | ||||||||||||||||||||||||||
Wholesale brokered time deposits | 579,149 | 444 | 0.31 | 589,272 | 837 | 0.57 | (10,123) | (393) | (0.26) | ||||||||||||||||||||||||||
Total interest-bearing deposits | 3,564,423 | 3,663 | 0.42 | 3,486,369 | 4,632 | 0.53 | 78,054 | (969) | (0.11) | ||||||||||||||||||||||||||
FHLB advances | 542,684 | 1,380 | 1.03 | 634,081 | 2,305 | 1.45 | (91,397) | (925) | (0.42) | ||||||||||||||||||||||||||
Junior subordinated debentures | 22,681 | 94 | 1.68 | 22,681 | 122 | 2.14 | — | (28) | (0.46) | ||||||||||||||||||||||||||
PPPLF borrowings | — | — | — | 81,858 | 72 | 0.35 | (81,858) | (72) | (0.35) | ||||||||||||||||||||||||||
Total interest-bearing liabilities | 4,129,788 | 5,137 | 0.50 | 4,224,989 | 7,131 | 0.67 | (95,201) | (1,994) | (0.17) | ||||||||||||||||||||||||||
Noninterest-bearing demand deposits | 890,628 | 838,713 | 51,915 | ||||||||||||||||||||||||||||||||
Other liabilities | 159,244 | 176,592 | (17,348) | ||||||||||||||||||||||||||||||||
Shareholders' equity | 532,271 | 527,969 | 4,302 | ||||||||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $5,711,931 | $5,768,263 | ($56,332) | ||||||||||||||||||||||||||||||||
Net interest income (FTE) | $33,117 | $32,496 | $621 | ||||||||||||||||||||||||||||||||
Interest rate spread | 2.40 | % | 2.25 | % | 0.15 | % | |||||||||||||||||||||||||||||
Net interest margin | 2.51 | % | 2.39 | % | 0.12 | % |
For the Three Months Ended | Mar 31, 2021 | Dec 31, 2020 | Quarter Change | ||||||||
Commercial loans | $246 | $253 | ($7) | ||||||||
Total | $246 | $253 | ($7) |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||
SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures | |||||||||||||||||
(Unaudited; Dollars in thousands, except per share amounts) | |||||||||||||||||
Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||||||||
Tangible Book Value per Share: | |||||||||||||||||
Total shareholders' equity, as reported | $533,599 | $534,195 | $527,693 | $520,163 | $508,597 | ||||||||||||
Less: | |||||||||||||||||
Goodwill | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | ||||||||||||
Identifiable intangible assets, net | 6,079 | 6,305 | 6,530 | 6,759 | 6,988 | ||||||||||||
Total tangible shareholders' equity | $463,611 | $463,981 | $457,254 | $449,495 | $437,700 | ||||||||||||
Shares outstanding, as reported | 17,306 | 17,265 | 17,260 | 17,260 | 17,252 | ||||||||||||
Book value per share - GAAP | $30.83 | $30.94 | $30.57 | $30.14 | $29.48 | ||||||||||||
Tangible book value per share - Non-GAAP | $26.79 | $26.87 | $26.49 | $26.04 | $25.37 | ||||||||||||
Tangible Equity to Tangible Assets: | |||||||||||||||||
Total tangible shareholders' equity | $463,611 | $463,981 | $457,254 | $449,495 | $437,700 | ||||||||||||
Total assets, as reported | $5,719,389 | $5,713,169 | $5,849,792 | $5,876,960 | $5,620,979 | ||||||||||||
Less: | |||||||||||||||||
Goodwill | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | ||||||||||||
Identifiable intangible assets, net | 6,079 | 6,305 | 6,530 | 6,759 | 6,988 | ||||||||||||
Total tangible assets | $5,649,401 | $5,642,955 | $5,779,353 | $5,806,292 | $5,550,082 | ||||||||||||
Equity to assets - GAAP | 9.33 | % | 9.35 | % | 9.02 | % | 8.85 | % | 9.05 | % | |||||||
Tangible equity to tangible assets - Non-GAAP | 8.21 | % | 8.22 | % | 7.91 | % | 7.74 | % | 7.89 | % |
For the Three Months Ended | |||||||||||||||||
Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||||||||
Return on Average Tangible Assets: | |||||||||||||||||
Net income, as reported | $20,471 | $18,566 | $18,322 | $21,040 | $11,901 | ||||||||||||
Total average assets, as reported | $5,711,931 | $5,768,263 | $5,864,449 | $5,789,692 | $5,394,948 | ||||||||||||
Less average balances of: | |||||||||||||||||
Goodwill | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | ||||||||||||
Identifiable intangible assets, net | 6,189 | 6,414 | 6,641 | 6,871 | 7,100 | ||||||||||||
Total average tangible assets | $5,641,833 | $5,697,940 | $5,793,899 | $5,718,912 | $5,323,939 | ||||||||||||
Return on average assets - GAAP | 1.45 | % | 1.28 | % | 1.24 | % | 1.46 | % | 0.89 | % | |||||||
Return on average tangible assets - Non-GAAP | 1.47 | % | 1.30 | % | 1.26 | % | 1.48 | % | 0.90 | % | |||||||
Return on Average Tangible Equity: | |||||||||||||||||
Net income available to common shareholders, as reported | $20,415 | $18,524 | $18,285 | $21,000 | $11,869 | ||||||||||||
Total average equity, as reported | $532,271 | $527,969 | $519,785 | $511,751 | $503,124 | ||||||||||||
Less average balances of: | |||||||||||||||||
Goodwill | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | ||||||||||||
Identifiable intangible assets, net | 6,189 | 6,414 | 6,641 | 6,871 | 7,100 | ||||||||||||
Total average tangible equity | $462,173 | $457,646 | $449,235 | $440,971 | $432,115 | ||||||||||||
Return on average equity - GAAP | 15.55 | % | 13.96 | % | 13.99 | % | 16.51 | % | 9.49 | % | |||||||
Return on average tangible equity - Non-GAAP | 17.91 | % | 16.10 | % | 16.19 | % | 19.15 | % | 11.05 | % |