Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||||||||
(Unaudited; Dollars in thousands) | |||||||||||||||||
Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||||||||
Assets: | |||||||||||||||||
Cash and due from banks | $224,807 | $175,259 | $297,039 | $127,743 | $166,960 | ||||||||||||
Short-term investments | 3,289 | 3,234 | 3,349 | 4,463 | 3,783 | ||||||||||||
Mortgage loans held for sale, at fair value | 15,612 | 40,196 | 48,705 | 31,492 | 77,450 | ||||||||||||
Available for sale debt securities, at fair value | 1,008,184 | 1,042,859 | 1,045,833 | 1,052,577 | 948,094 | ||||||||||||
Federal Home Loan Bank stock, at cost | 8,452 | 13,031 | 15,094 | 22,757 | 24,772 | ||||||||||||
Loans: | |||||||||||||||||
Total loans | 4,283,852 | 4,272,925 | 4,286,404 | 4,299,800 | 4,194,666 | ||||||||||||
Less: allowance for credit losses on loans | 39,236 | 39,088 | 41,711 | 41,879 | 42,137 | ||||||||||||
Net loans | 4,244,616 | 4,233,837 | 4,244,693 | 4,257,921 | 4,152,529 | ||||||||||||
Premises and equipment, net | 28,878 | 28,908 | 28,488 | 29,031 | 28,953 | ||||||||||||
Operating lease right-of-use assets | 28,816 | 26,692 | 27,518 | 28,329 | 28,761 | ||||||||||||
Investment in bank-owned life insurance | 93,192 | 92,592 | 92,974 | 92,355 | 84,749 | ||||||||||||
Goodwill | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | ||||||||||||
Identifiable intangible assets, net | 5,198 | 5,414 | 5,631 | 5,853 | 6,079 | ||||||||||||
Other assets | 123,046 | 125,196 | 129,410 | 135,550 | 133,350 | ||||||||||||
Total assets | $5,847,999 | $5,851,127 | $6,002,643 | $5,851,980 | $5,719,389 | ||||||||||||
Liabilities: | |||||||||||||||||
Deposits: | |||||||||||||||||
Noninterest-bearing deposits | $911,990 | $945,229 | $950,974 | $901,801 | $932,999 | ||||||||||||
Interest-bearing deposits | 4,215,960 | 4,034,822 | 4,107,168 | 3,823,858 | 3,616,143 | ||||||||||||
Total deposits | 5,127,950 | 4,980,051 | 5,058,142 | 4,725,659 | 4,549,142 | ||||||||||||
Federal Home Loan Bank advances | 55,000 | 145,000 | 222,592 | 408,592 | 466,912 | ||||||||||||
Junior subordinated debentures | 22,681 | 22,681 | 22,681 | 22,681 | 22,681 | ||||||||||||
Operating lease liabilities | 31,169 | 29,010 | 29,810 | 30,558 | 30,974 | ||||||||||||
Other liabilities | 98,007 | 109,577 | 114,100 | 116,634 | 116,081 | ||||||||||||
Total liabilities | 5,334,807 | 5,286,319 | 5,447,325 | 5,304,124 | 5,185,790 | ||||||||||||
Shareholders’ Equity: | |||||||||||||||||
Common stock | 1,085 | 1,085 | 1,085 | 1,085 | 1,085 | ||||||||||||
Paid-in capital | 127,355 | 126,511 | 126,265 | 125,442 | 124,882 | ||||||||||||
Retained earnings | 465,295 | 458,310 | 447,566 | 437,927 | 429,598 | ||||||||||||
Accumulated other comprehensive (loss) income | (79,451) | (19,981) | (18,128) | (15,128) | (20,006) | ||||||||||||
Treasury stock, at cost | (1,092) | (1,117) | (1,470) | (1,470) | (1,960) | ||||||||||||
Total shareholders’ equity | 513,192 | 564,808 | 555,318 | 547,856 | 533,599 | ||||||||||||
Total liabilities and shareholders’ equity | $5,847,999 | $5,851,127 | $6,002,643 | $5,851,980 | $5,719,389 |
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, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||||||||
Interest income: | |||||||||||||||||
Interest and fees on loans | $33,930 | $36,882 | $35,691 | $34,820 | $34,159 | ||||||||||||
Interest on mortgage loans held for sale | 232 | 387 | 298 | 405 | 441 | ||||||||||||
Taxable interest on debt securities | 4,230 | 3,929 | 3,683 | 3,441 | 3,242 | ||||||||||||
Dividends on Federal Home Loan Bank stock | 67 | 98 | 95 | 110 | 133 | ||||||||||||
Other interest income | 78 | 60 | 56 | 32 | 33 | ||||||||||||
Total interest and dividend income | 38,537 | 41,356 | 39,823 | 38,808 | 38,008 | ||||||||||||
Interest expense: | |||||||||||||||||
Deposits | 3,103 | 2,977 | 2,789 | 2,961 | 3,663 | ||||||||||||
Federal Home Loan Bank advances | 244 | 547 | 872 | 1,001 | 1,380 | ||||||||||||
Junior subordinated debentures | 99 | 92 | 92 | 92 | 94 | ||||||||||||
Total interest expense | 3,446 | 3,616 | 3,753 | 4,054 | 5,137 | ||||||||||||
Net interest income | 35,091 | 37,740 | 36,070 | 34,754 | 32,871 | ||||||||||||
Provision for credit losses | 100 | (2,822) | — | — | (2,000) | ||||||||||||
Net interest income after provision for credit losses | 34,991 | 40,562 | 36,070 | 34,754 | 34,871 | ||||||||||||
Noninterest income: | |||||||||||||||||
Wealth management revenues | 10,531 | 10,504 | 10,455 | 10,428 | 9,895 | ||||||||||||
Mortgage banking revenues | 3,501 | 4,332 | 6,373 | 5,994 | 11,927 | ||||||||||||
Card interchange fees | 1,164 | 1,282 | 1,265 | 1,316 | 1,133 | ||||||||||||
Service charges on deposit accounts | 668 | 766 | 673 | 635 | 609 | ||||||||||||
Loan related derivative income | 301 | 1,972 | 728 | 1,175 | 467 | ||||||||||||
Income from bank-owned life insurance | 601 | 1,144 | 618 | 607 | 556 | ||||||||||||
Other income | 393 | 307 | 408 | 438 | 1,387 | ||||||||||||
Total noninterest income | 17,159 | 20,307 | 20,520 | 20,593 | 25,974 | ||||||||||||
Noninterest expense: | |||||||||||||||||
Salaries and employee benefits | 21,002 | 21,524 | 22,162 | 22,082 | 21,527 | ||||||||||||
Outsourced services | 3,242 | 3,585 | 3,294 | 3,217 | 3,200 | ||||||||||||
Net occupancy | 2,300 | 2,145 | 2,134 | 2,042 | 2,128 | ||||||||||||
Equipment | 918 | 959 | 977 | 975 | 994 | ||||||||||||
Legal, audit and professional fees | 770 | 817 | 767 | 678 | 597 | ||||||||||||
FDIC deposit insurance costs | 366 | 391 | 482 | 374 | 345 | ||||||||||||
Advertising and promotion | 351 | 502 | 559 | 560 | 222 | ||||||||||||
Amortization of intangibles | 217 | 216 | 223 | 225 | 226 | ||||||||||||
Debt prepayment penalties | — | 2,700 | — | 895 | 3,335 | ||||||||||||
Other expenses | 2,053 | 2,380 | 1,922 | 1,964 | 2,139 | ||||||||||||
Total noninterest expense | 31,219 | 35,219 | 32,520 | 33,012 | 34,713 | ||||||||||||
Income before income taxes | 20,931 | 25,650 | 24,070 | 22,335 | 26,132 | ||||||||||||
Income tax expense | 4,448 | 5,462 | 5,319 | 4,875 | 5,661 | ||||||||||||
Net income | $16,483 | $20,188 | $18,751 | $17,460 | $20,471 | ||||||||||||
Net income available to common shareholders | $16,429 | $20,128 | $18,697 | $17,408 | $20,415 | ||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||
Basic | 17,331 | 17,328 | 17,320 | 17,314 | 17,275 | ||||||||||||
Diluted | 17,482 | 17,469 | 17,444 | 17,436 | 17,431 | ||||||||||||
Earnings per common share: | |||||||||||||||||
Basic | $0.95 | $1.16 | $1.08 | $1.01 | $1.18 | ||||||||||||
Diluted | $0.94 | $1.15 | $1.07 | $1.00 | $1.17 | ||||||||||||
Cash dividends declared per share | $0.54 | $0.54 | $0.52 | $0.52 | $0.52 |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||
SELECTED FINANCIAL HIGHLIGHTS | |||||||||||||||||
(Unaudited; Dollars and shares in thousands, except per share amounts) | |||||||||||||||||
Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||||||||
Share and Equity Related Data: | |||||||||||||||||
Book value per share | $29.61 | $32.59 | $32.06 | $31.63 | $30.83 | ||||||||||||
Tangible book value per share - Non-GAAP (1) | $25.62 | $28.59 | $28.05 | $27.60 | $26.79 | ||||||||||||
Market value per share | $52.50 | $56.37 | $52.98 | $51.35 | $51.63 | ||||||||||||
Shares issued at end of period | 17,363 | 17,363 | 17,363 | 17,363 | 17,363 | ||||||||||||
Shares outstanding at end of period | 17,332 | 17,331 | 17,320 | 17,320 | 17,306 | ||||||||||||
Capital Ratios (2): | |||||||||||||||||
Tier 1 risk-based capital | 13.32 | % | 13.24 | % | 13.01 | % | 12.82 | % | 12.99 | % | |||||||
Total risk-based capital | 14.15 | % | 14.01 | % | 13.83 | % | 13.65 | % | 13.85 | % | |||||||
Tier 1 leverage ratio | 9.46 | % | 9.36 | % | 9.12 | % | 9.07 | % | 9.11 | % | |||||||
Common equity tier 1 | 12.79 | % | 12.71 | % | 12.47 | % | 12.28 | % | 12.43 | % | |||||||
Balance Sheet Ratios: | |||||||||||||||||
Equity to assets | 8.78 | % | 9.65 | % | 9.25 | % | 9.36 | % | 9.33 | % | |||||||
Tangible equity to tangible assets - Non-GAAP (1) | 7.68 | % | 8.57 | % | 8.19 | % | 8.27 | % | 8.21 | % | |||||||
Loans to deposits (3) | 83.1 | % | 85.8 | % | 84.9 | % | 90.8 | % | 93.0 | % |
For the Three Months Ended | |||||||||||||||||
Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||||||||
Performance Ratios (4): | |||||||||||||||||
Net interest margin (5) | 2.57 | % | 2.71 | % | 2.58 | % | 2.55 | % | 2.51 | % | |||||||
Return on average assets (net income divided by average assets) | 1.14 | % | 1.36 | % | 1.26 | % | 1.20 | % | 1.45 | % | |||||||
Return on average tangible assets - Non-GAAP (1) | 1.15 | % | 1.38 | % | 1.27 | % | 1.22 | % | 1.47 | % | |||||||
Return on average equity (net income available for common shareholders divided by average equity) | 12.04 | % | 14.34 | % | 13.37 | % | 12.92 | % | 15.55 | % | |||||||
Return on average tangible equity - Non-GAAP (1) | 13.77 | % | 16.39 | % | 15.29 | % | 14.84 | % | 17.91 | % | |||||||
Efficiency ratio (6) | 59.7 | % | 60.7 | % | 57.5 | % | 59.6 | % | 59.0 | % |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||
SELECTED FINANCIAL HIGHLIGHTS | |||||||||||||||||
(Unaudited; Dollars in thousands) | |||||||||||||||||
For the Three Months Ended | |||||||||||||||||
Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||||||||
Wealth Management Results | |||||||||||||||||
Wealth Management Revenues: | |||||||||||||||||
Asset-based revenues | $10,211 | $10,417 | $10,224 | $9,991 | $9,583 | ||||||||||||
Transaction-based revenues | 320 | 87 | 231 | 437 | 312 | ||||||||||||
Total wealth management revenues | $10,531 | $10,504 | $10,455 | $10,428 | $9,895 | ||||||||||||
Assets Under Administration (AUA): | |||||||||||||||||
Balance at beginning of period | $7,784,211 | $7,443,396 | $7,441,519 | $7,049,226 | $6,866,737 | ||||||||||||
Net investment (depreciation) appreciation & income | (388,733) | 358,796 | (4,830) | 368,383 | 208,953 | ||||||||||||
Net client asset inflows (outflows) | 97,415 | (17,981) | 6,707 | 23,910 | (26,464) | ||||||||||||
Balance at end of period | $7,492,893 | $7,784,211 | $7,443,396 | $7,441,519 | $7,049,226 | ||||||||||||
Percentage of AUA that are managed assets | 92% | 92% | 91% | 92% | 91% | ||||||||||||
Mortgage Banking Results | |||||||||||||||||
Mortgage Banking Revenues: | |||||||||||||||||
Realized gains on loan sales, net (1) | $3,327 | $5,695 | $5,750 | $8,562 | $13,745 | ||||||||||||
Changes in fair value, net (2) | (242) | (1,594) | 467 | (2,543) | (1,888) | ||||||||||||
Loan servicing fee income, net (3) | 416 | 231 | 156 | (25) | 70 | ||||||||||||
Total mortgage banking revenues | $3,501 | $4,332 | $6,373 | $5,994 | $11,927 | ||||||||||||
Residential Mortgage Loan Originations: | |||||||||||||||||
Originations for retention in portfolio (4) | $164,401 | $174,438 | $205,293 | $244,821 | $131,791 | ||||||||||||
Originations for sale to secondary market (5) | 106,619 | 188,735 | 190,702 | 244,562 | 309,325 | ||||||||||||
Total mortgage loan originations | $271,020 | $363,173 | $395,995 | $489,383 | $441,116 | ||||||||||||
Residential Mortgage Loans Sold: | |||||||||||||||||
Sold with servicing rights retained | $14,627 | $21,180 | $108,445 | $235,280 | $226,645 | ||||||||||||
Sold with servicing rights released (5) | 115,501 | 175,818 | 65,416 | 55,278 | 65,374 | ||||||||||||
Total mortgage loans sold | $130,128 | $196,998 | $173,861 | $290,558 | $292,019 |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||
END OF PERIOD LOAN COMPOSITION | |||||||||||||||||
(Unaudited; Dollars in thousands) | |||||||||||||||||
Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||||||||
Loans: | |||||||||||||||||
Commercial real estate (1) | $1,628,620 | $1,639,062 | $1,661,785 | $1,669,624 | $1,618,540 | ||||||||||||
Commercial & industrial | 614,892 | 641,555 | 682,774 | 764,509 | 840,585 | ||||||||||||
Total commercial | 2,243,512 | 2,280,617 | 2,344,559 | 2,434,133 | 2,459,125 | ||||||||||||
Residential real estate (2) | 1,777,974 | 1,726,975 | 1,672,364 | 1,590,389 | 1,457,490 | ||||||||||||
Home equity | 246,097 | 247,697 | 249,874 | 254,802 | 256,799 | ||||||||||||
Other | 16,269 | 17,636 | 19,607 | 20,476 | 21,252 | ||||||||||||
Total consumer | 262,366 | 265,333 | 269,481 | 275,278 | 278,051 | ||||||||||||
Total loans | $4,283,852 | $4,272,925 | $4,286,404 | $4,299,800 | $4,194,666 |
March 31, 2022 | December 31, 2021 | ||||||||||||||||||||||
Count | Balance | % of Total | Count | Balance | % of Total | ||||||||||||||||||
Commercial Real Estate Portfolio Segmentation: | |||||||||||||||||||||||
Multi-family dwelling | 125 | $443,571 | 27 | % | 127 | $474,229 | 29 | % | |||||||||||||||
Retail | 117 | 380,588 | 23 | 121 | 389,487 | 24 | |||||||||||||||||
Office | 59 | 219,551 | 13 | 57 | 216,602 | 13 | |||||||||||||||||
Hospitality | 32 | 193,213 | 12 | 31 | 184,990 | 11 | |||||||||||||||||
Industrial and warehouse | 36 | 143,441 | 9 | 35 | 137,254 | 8 | |||||||||||||||||
Healthcare | 15 | 134,713 | 8 | 13 | 128,189 | 8 | |||||||||||||||||
Commercial mixed use | 20 | 38,731 | 2 | 20 | 38,978 | 2 | |||||||||||||||||
Other | 36 | 74,812 | 6 | 36 | 69,333 | 5 | |||||||||||||||||
Commercial real estate loans | 440 | $1,628,620 | 100 | % | 440 | $1,639,062 | 100 | % | |||||||||||||||
Commercial & Industrial Portfolio Segmentation: | |||||||||||||||||||||||
Healthcare and social assistance | 72 | $175,988 | 29 | % | 101 | $174,376 | 27 | % | |||||||||||||||
Owner occupied and other real estate | 170 | 67,651 | 11 | 185 | 72,957 | 11 | |||||||||||||||||
Manufacturing | 52 | 55,868 | 9 | 65 | 55,341 | 9 | |||||||||||||||||
Educational services | 22 | 50,939 | 8 | 28 | 52,211 | 8 | |||||||||||||||||
Retail | 71 | 43,436 | 7 | 79 | 47,290 | 7 | |||||||||||||||||
Transportation and warehousing | 25 | 34,605 | 6 | 31 | 35,064 | 5 | |||||||||||||||||
Finance and insurance | 59 | 35,477 | 6 | 59 | 31,279 | 5 | |||||||||||||||||
Entertainment and recreation | 28 | 29,297 | 5 | 37 | 32,087 | 5 | |||||||||||||||||
Information | 10 | 23,377 | 4 | 14 | 25,045 | 4 | |||||||||||||||||
Accommodation and food services | 71 | 19,589 | 3 | 114 | 28,320 | 4 | |||||||||||||||||
Professional, scientific and technical | 46 | 6,781 | 1 | 69 | 8,912 | 1 | |||||||||||||||||
Public administration | 15 | 5,340 | 1 | 16 | 5,441 | 1 | |||||||||||||||||
Other | 202 | 66,544 | 10 | 281 | 73,232 | 13 | |||||||||||||||||
Commercial & industrial loans | 843 | $614,892 | 100 | % | 1,079 | $641,555 | 100 | % |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||
END OF PERIOD LOAN AND DEPOSIT COMPOSITION | |||||||||||||||||
(Unaudited; Dollars in thousands) | |||||||||||||||||
March 31, 2022 | December 31, 2021 | ||||||||||||||||
Balance | % of Total | Balance | % of Total | ||||||||||||||
Commercial Real Estate Loans by Property Location: | |||||||||||||||||
Connecticut | $618,315 | 38 | % | $643,182 | 39 | % | |||||||||||
Massachusetts | 472,902 | 29 | 464,018 | 28 | |||||||||||||
Rhode Island | 394,011 | 24 | 408,496 | 25 | |||||||||||||
Subtotal | 1,485,228 | 91 | 1,515,696 | 92 | |||||||||||||
All other states | 143,392 | 9 | 123,366 | 8 | |||||||||||||
Total commercial real estate loans | $1,628,620 | 100 | % | $1,639,062 | 100 | % | |||||||||||
Residential Real Estate Loans by Property Location: | |||||||||||||||||
Massachusetts | $1,250,376 | 70 | % | $1,207,789 | 70 | % | |||||||||||
Rhode Island | 371,463 | 21 | 365,831 | 21 | |||||||||||||
Connecticut | 133,815 | 8 | 132,430 | 8 | |||||||||||||
Subtotal | 1,755,654 | 99 | 1,706,050 | 99 | |||||||||||||
All other states | 22,320 | 1 | 20,925 | 1 | |||||||||||||
Total residential real estate loans | $1,777,974 | 100 | % | $1,726,975 | 100 | % |
Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||||||||
Deposits: | |||||||||||||||||
Noninterest-bearing demand deposits | $911,990 | $945,229 | $950,974 | $901,801 | $932,999 | ||||||||||||
Interest-bearing demand deposits | 248,914 | 251,032 | 238,317 | 174,165 | 171,571 | ||||||||||||
NOW accounts | 893,603 | 867,138 | 817,937 | 774,693 | 745,376 | ||||||||||||
Money market accounts | 1,295,339 | 1,072,864 | 1,046,324 | 941,511 | 950,413 | ||||||||||||
Savings accounts | 566,461 | 555,177 | 540,306 | 524,155 | 511,759 | ||||||||||||
Time deposits (in-market) | 809,858 | 773,383 | 709,288 | 677,061 | 701,524 | ||||||||||||
In-market deposits | 4,726,165 | 4,464,823 | 4,303,146 | 3,993,386 | 4,013,642 | ||||||||||||
Wholesale brokered time deposits | 401,785 | 515,228 | 754,996 | 732,273 | 535,500 | ||||||||||||
Total deposits | $5,127,950 | $4,980,051 | $5,058,142 | $4,725,659 | $4,549,142 |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||
CREDIT & ASSET QUALITY DATA | |||||||||||||||||
(Unaudited; Dollars in thousands) | |||||||||||||||||
Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||||||||
Asset Quality Ratios: | |||||||||||||||||
Nonperforming assets to total assets | 0.22 | % | 0.24 | % | 0.18 | % | 0.18 | % | 0.23 | % | |||||||
Nonaccrual loans to total loans | 0.29 | % | 0.33 | % | 0.26 | % | 0.24 | % | 0.31 | % | |||||||
Total past due loans to total loans | 0.16 | % | 0.24 | % | 0.22 | % | 0.20 | % | 0.26 | % | |||||||
Allowance for credit losses on loans to nonaccrual loans | 311.67 | % | 275.21 | % | 380.02 | % | 399.57 | % | 324.56 | % | |||||||
Allowance for credit losses on loans to total loans | 0.92 | % | 0.91 | % | 0.97 | % | 0.97 | % | 1.00 | % | |||||||
Nonperforming Assets: | |||||||||||||||||
Commercial real estate | $— | $— | $— | $— | $— | ||||||||||||
Commercial & industrial | — | — | — | 539 | — | ||||||||||||
Total commercial | — | — | — | 539 | — | ||||||||||||
Residential real estate | 11,916 | 13,576 | 10,321 | 8,926 | 11,748 | ||||||||||||
Home equity | 673 | 627 | 655 | 1,016 | 1,147 | ||||||||||||
Other consumer | — | — | — | — | 88 | ||||||||||||
Total consumer | 673 | 627 | 655 | 1,016 | 1,235 | ||||||||||||
Total nonaccrual loans | 12,589 | 14,203 | 10,976 | 10,481 | 12,983 | ||||||||||||
Other real estate owned | — | — | — | — | — | ||||||||||||
Total nonperforming assets | $12,589 | $14,203 | $10,976 | $10,481 | $12,983 | ||||||||||||
Past Due Loans (30 days or more past due): | |||||||||||||||||
Commercial real estate | $— | $— | $— | $— | $— | ||||||||||||
Commercial & industrial | 108 | 3 | 2 | 540 | 1 | ||||||||||||
Total commercial | 108 | 3 | 2 | 540 | 1 | ||||||||||||
Residential real estate | 6,467 | 9,622 | 8,698 | 6,656 | 9,661 | ||||||||||||
Home equity | 431 | 765 | 824 | 1,231 | 1,131 | ||||||||||||
Other consumer | 30 | 21 | 24 | 28 | 119 | ||||||||||||
Total consumer | 461 | 786 | 848 | 1,259 | 1,250 | ||||||||||||
Total past due loans | $7,036 | $10,411 | $9,548 | $8,455 | $10,912 | ||||||||||||
Accruing loans 90 days or more past due | $— | $— | $— | $— | $— | ||||||||||||
Nonaccrual loans included in past due loans | $5,707 | $9,359 | $6,930 | $5,773 | $8,356 | ||||||||||||
Troubled Debt Restructurings ("TDR"): | |||||||||||||||||
Accruing TDRs | $16,303 | $16,328 | $7,979 | $8,541 | $12,358 | ||||||||||||
Nonaccrual TDRs | 2,789 | 2,819 | 1,732 | 2,278 | 1,935 | ||||||||||||
Total TDRs | $19,092 | $19,147 | $9,711 | $10,819 | $14,293 |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||
CREDIT & ASSET QUALITY DATA | |||||||||||||||||
(Unaudited; Dollars in thousands) | |||||||||||||||||
For the Three Months Ended | |||||||||||||||||
Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||||||||
Nonaccrual Loan Activity: | |||||||||||||||||
Balance at beginning of period | $14,203 | $10,976 | $10,481 | $12,983 | $13,197 | ||||||||||||
Additions to nonaccrual status | 427 | 3,959 | 2,583 | 537 | 734 | ||||||||||||
Loans returned to accruing status | (63) | (339) | — | (874) | (3) | ||||||||||||
Loans charged-off | (36) | (31) | (249) | (317) | (64) | ||||||||||||
Payments, payoffs and other changes | (1,942) | (362) | (1,839) | (1,848) | (881) | ||||||||||||
Balance at end of period | $12,589 | $14,203 | $10,976 | $10,481 | $12,983 | ||||||||||||
Allowance for Credit Losses on Loans: | |||||||||||||||||
Balance at beginning of period | $39,088 | $41,711 | $41,879 | $42,137 | $44,106 | ||||||||||||
Provision for credit losses on loans (1) | — | (2,650) | — | — | (1,951) | ||||||||||||
Charge-offs | (36) | (33) | (249) | (317) | (64) | ||||||||||||
Recoveries | 184 | 60 | 81 | 59 | 46 | ||||||||||||
Balance at end of period | $39,236 | $39,088 | $41,711 | $41,879 | $42,137 | ||||||||||||
Allowance for Credit Losses on Unfunded Commitments: | |||||||||||||||||
Balance at beginning of period | $2,161 | $2,333 | $2,333 | $2,333 | $2,382 | ||||||||||||
Provision for credit losses on unfunded commitments (1) | 100 | (172) | — | — | (49) | ||||||||||||
Balance at end of period (2) | $2,261 | $2,161 | $2,333 | $2,333 | $2,333 |
For the Three Months Ended | |||||||||||||||||
Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||||||||
Net Loan Charge-Offs (Recoveries): | |||||||||||||||||
Commercial real estate | ($145) | $— | $— | $— | $— | ||||||||||||
Commercial & industrial | (1) | (35) | (2) | 302 | 1 | ||||||||||||
Total commercial | (146) | (35) | (2) | 302 | 1 | ||||||||||||
Residential real estate | (21) | (4) | 52 | (47) | 17 | ||||||||||||
Home equity | (2) | (12) | 110 | (4) | (2) | ||||||||||||
Other consumer | 21 | 24 | 8 | 7 | 2 | ||||||||||||
Total consumer | 19 | 12 | 118 | 3 | — | ||||||||||||
Total | ($148) | ($27) | $168 | $258 | $18 | ||||||||||||
Net charge-offs (recoveries) to average loans - annualized | (0.01 | %) | — | % | 0.02 | % | 0.02 | % | — | % |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||||||||||||||||||||
CONSOLIDATED AVERAGE BALANCE SHEETS (FTE Basis) | |||||||||||||||||||||||||||||||||||
(Unaudited; Dollars in thousands) | |||||||||||||||||||||||||||||||||||
For the Three Months Ended | March 31, 2022 | December 31, 2021 | 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 | $183,684 | $78 | 0.17 | % | $190,291 | $60 | 0.13 | % | ($6,607) | $18 | 0.04 | % | |||||||||||||||||||||||
Mortgage loans held for sale | 28,471 | 232 | 3.30 | 50,425 | 387 | 3.04 | (21,954) | (155) | 0.26 | ||||||||||||||||||||||||||
Taxable debt securities | 1,071,745 | 4,230 | 1.60 | 1,060,045 | 3,929 | 1.47 | 11,700 | 301 | 0.13 | ||||||||||||||||||||||||||
FHLB stock | 12,294 | 67 | 2.21 | 12,986 | 98 | 2.99 | (692) | (31) | (0.78) | ||||||||||||||||||||||||||
Commercial real estate | 1,631,819 | 11,891 | 2.96 | 1,657,669 | 14,281 | 3.42 | (25,850) | (2,390) | (0.46) | ||||||||||||||||||||||||||
Commercial & industrial | 634,869 | 6,226 | 3.98 | 630,805 | 6,960 | 4.38 | 4,064 | (734) | (0.40) | ||||||||||||||||||||||||||
Total commercial | 2,266,688 | 18,117 | 3.24 | 2,288,474 | 21,241 | 3.68 | (21,786) | (3,124) | (0.44) | ||||||||||||||||||||||||||
Residential real estate | 1,740,087 | 13,987 | 3.26 | 1,689,949 | 13,636 | 3.20 | 50,138 | 351 | 0.06 | ||||||||||||||||||||||||||
Home equity | 246,766 | 1,875 | 3.08 | 249,336 | 1,992 | 3.17 | (2,570) | (117) | (0.09) | ||||||||||||||||||||||||||
Other | 16,933 | 195 | 4.67 | 18,171 | 224 | 4.89 | (1,238) | (29) | (0.22) | ||||||||||||||||||||||||||
Total consumer | 263,699 | 2,070 | 3.18 | 267,507 | 2,216 | 3.29 | (3,808) | (146) | (0.11) | ||||||||||||||||||||||||||
Total loans | 4,270,474 | 34,174 | 3.25 | 4,245,930 | 37,093 | 3.47 | 24,544 | (2,919) | (0.22) | ||||||||||||||||||||||||||
Total interest-earning assets | 5,566,668 | 38,781 | 2.83 | 5,559,677 | 41,567 | 2.97 | 6,991 | (2,786) | (0.14) | ||||||||||||||||||||||||||
Noninterest-earning assets | 298,000 | 324,904 | (26,904) | ||||||||||||||||||||||||||||||||
Total assets | $5,864,668 | $5,884,581 | ($19,913) | ||||||||||||||||||||||||||||||||
Liabilities and Shareholders' Equity: | |||||||||||||||||||||||||||||||||||
Interest-bearing demand deposits | $248,395 | $70 | 0.11 | % | $238,390 | $63 | 0.10 | % | $10,005 | $7 | 0.01 | % | |||||||||||||||||||||||
NOW accounts | 847,848 | 130 | 0.06 | 819,590 | 142 | 0.07 | 28,258 | (12) | (0.01) | ||||||||||||||||||||||||||
Money market accounts | 1,174,833 | 615 | 0.21 | 1,059,846 | 561 | 0.21 | 114,987 | 54 | — | ||||||||||||||||||||||||||
Savings accounts | 561,339 | 71 | 0.05 | 544,981 | 70 | 0.05 | 16,358 | 1 | — | ||||||||||||||||||||||||||
Time deposits (in-market) | 793,169 | 2,017 | 1.03 | 746,887 | 1,927 | 1.02 | 46,282 | 90 | 0.01 | ||||||||||||||||||||||||||
Total interest-bearing in-market deposits | 3,625,584 | 2,903 | 0.32 | 3,409,694 | 2,763 | 0.32 | 215,890 | 140 | — | ||||||||||||||||||||||||||
Wholesale brokered time deposits | 455,785 | 200 | 0.18 | 611,467 | 214 | 0.14 | (155,682) | (14) | 0.04 | ||||||||||||||||||||||||||
Total interest-bearing deposits | 4,081,369 | 3,103 | 0.31 | 4,021,161 | 2,977 | 0.29 | 60,208 | 126 | 0.02 | ||||||||||||||||||||||||||
FHLB advances | 150,922 | 244 | 0.66 | 171,079 | 547 | 1.27 | (20,157) | (303) | (0.61) | ||||||||||||||||||||||||||
Junior subordinated debentures | 22,681 | 99 | 1.77 | 22,681 | 92 | 1.61 | — | 7 | 0.16 | ||||||||||||||||||||||||||
Total interest-bearing liabilities | 4,254,972 | 3,446 | 0.33 | 4,214,921 | 3,616 | 0.34 | 40,051 | (170) | (0.01) | ||||||||||||||||||||||||||
Noninterest-bearing demand deposits | 940,220 | 981,706 | (41,486) | ||||||||||||||||||||||||||||||||
Other liabilities | 116,291 | 131,189 | (14,898) | ||||||||||||||||||||||||||||||||
Shareholders' equity | 553,185 | 556,765 | (3,580) | ||||||||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $5,864,668 | $5,884,581 | ($19,913) | ||||||||||||||||||||||||||||||||
Net interest income (FTE) | $35,335 | $37,951 | ($2,616) | ||||||||||||||||||||||||||||||||
Interest rate spread | 2.50 | % | 2.63 | % | (0.13 | %) | |||||||||||||||||||||||||||||
Net interest margin | 2.57 | % | 2.71 | % | (0.14 | %) |
For the Three Months Ended | Mar 31, 2022 | Dec 31, 2021 | Change | ||||||||
Commercial loans | $244 | $211 | $33 | ||||||||
Total | $244 | $211 | $33 |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||
SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures | |||||||||||||||||
(Unaudited; Dollars in thousands, except per share amounts) | |||||||||||||||||
Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||||||||
Tangible Book Value per Share: | |||||||||||||||||
Total shareholders' equity, as reported | $513,192 | $564,808 | $555,318 | $547,856 | $533,599 | ||||||||||||
Less: | |||||||||||||||||
Goodwill | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | ||||||||||||
Identifiable intangible assets, net | 5,198 | 5,414 | 5,631 | 5,853 | 6,079 | ||||||||||||
Total tangible shareholders' equity | $444,085 | $495,485 | $485,778 | $478,094 | $463,611 | ||||||||||||
Shares outstanding, as reported | 17,332 | 17,331 | 17,320 | 17,320 | 17,306 | ||||||||||||
Book value per share - GAAP | $29.61 | $32.59 | $32.06 | $31.63 | $30.83 | ||||||||||||
Tangible book value per share - Non-GAAP | $25.62 | $28.59 | $28.05 | $27.60 | $26.79 | ||||||||||||
Tangible Equity to Tangible Assets: | |||||||||||||||||
Total tangible shareholders' equity | $444,085 | $495,485 | $485,778 | $478,094 | $463,611 | ||||||||||||
Total assets, as reported | $5,847,999 | $5,851,127 | $6,002,643 | $5,851,980 | $5,719,389 | ||||||||||||
Less: | |||||||||||||||||
Goodwill | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | ||||||||||||
Identifiable intangible assets, net | 5,198 | 5,414 | 5,631 | 5,853 | 6,079 | ||||||||||||
Total tangible assets | $5,778,892 | $5,781,804 | $5,933,103 | $5,782,218 | $5,649,401 | ||||||||||||
Equity to assets - GAAP | 8.78 | % | 9.65 | % | 9.25 | % | 9.36 | % | 9.33 | % | |||||||
Tangible equity to tangible assets - Non-GAAP | 7.68 | % | 8.57 | % | 8.19 | % | 8.27 | % | 8.21 | % |
For the Three Months Ended | |||||||||||||||||
Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||||||||
Return on Average Tangible Assets: | |||||||||||||||||
Net income, as reported | $16,483 | $20,188 | $18,751 | $17,460 | $20,471 | ||||||||||||
Total average assets, as reported | $5,864,668 | $5,884,581 | $5,919,137 | $5,833,425 | $5,711,931 | ||||||||||||
Less average balances of: | |||||||||||||||||
Goodwill | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | ||||||||||||
Identifiable intangible assets, net | 5,303 | 5,526 | 5,739 | 5,963 | 6,189 | ||||||||||||
Total average tangible assets | $5,795,456 | $5,815,146 | $5,849,489 | $5,763,553 | $5,641,833 | ||||||||||||
Return on average assets - GAAP | 1.14 | % | 1.36 | % | 1.26 | % | 1.20 | % | 1.45 | % | |||||||
Return on average tangible assets - Non-GAAP | 1.15 | % | 1.38 | % | 1.27 | % | 1.22 | % | 1.47 | % | |||||||
Return on Average Tangible Equity: | |||||||||||||||||
Net income available to common shareholders, as reported | $16,429 | $20,128 | $18,697 | $17,408 | $20,415 | ||||||||||||
Total average equity, as reported | $553,185 | $556,765 | $554,847 | $540,524 | $532,271 | ||||||||||||
Less average balances of: | |||||||||||||||||
Goodwill | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | ||||||||||||
Identifiable intangible assets, net | 5,303 | 5,526 | 5,739 | 5,963 | 6,189 | ||||||||||||
Total average tangible equity | $483,973 | $487,330 | $485,199 | $470,652 | $462,173 | ||||||||||||
Return on average equity - GAAP | 12.04 | % | 14.34 | % | 13.37 | % | 12.92 | % | 15.55 | % | |||||||
Return on average tangible equity - Non-GAAP | 13.77 | % | 16.39 | % | 15.29 | % | 14.84 | % | 17.91 | % |