Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||||||||
(Unaudited; Dollars in thousands) | |||||||||||||||||
Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||||||||
Assets: | |||||||||||||||||
Cash and due from banks | $134,989 | $115,492 | $130,066 | $95,544 | $224,807 | ||||||||||||
Short-term investments | 3,291 | 2,930 | 2,773 | 3,079 | 3,289 | ||||||||||||
Mortgage loans held for sale, at fair value | 7,445 | 8,987 | 24,054 | 22,656 | 15,612 | ||||||||||||
Available for sale debt securities, at fair value | 1,054,747 | 993,928 | 982,573 | 1,020,469 | 1,008,184 | ||||||||||||
Federal Home Loan Bank stock, at cost | 42,501 | 43,463 | 32,940 | 16,300 | 8,452 | ||||||||||||
Loans: | |||||||||||||||||
Total loans | 5,227,969 | 5,110,139 | 4,848,873 | 4,479,822 | 4,283,852 | ||||||||||||
Less: allowance for credit losses on loans | 38,780 | 38,027 | 36,863 | 36,317 | 39,236 | ||||||||||||
Net loans | 5,189,189 | 5,072,112 | 4,812,010 | 4,443,505 | 4,244,616 | ||||||||||||
Premises and equipment, net | 31,719 | 31,550 | 30,152 | 29,694 | 28,878 | ||||||||||||
Operating lease right-of-use assets | 26,170 | 27,156 | 27,788 | 28,098 | 28,816 | ||||||||||||
Investment in bank-owned life insurance | 101,782 | 102,182 | 101,491 | 100,807 | 93,192 | ||||||||||||
Goodwill | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | ||||||||||||
Identifiable intangible assets, net | 4,342 | 4,554 | 4,766 | 4,981 | 5,198 | ||||||||||||
Other assets | 199,098 | 193,788 | 195,529 | 153,849 | 123,046 | ||||||||||||
Total assets | $6,859,182 | $6,660,051 | $6,408,051 | $5,982,891 | $5,847,999 | ||||||||||||
Liabilities: | |||||||||||||||||
Deposits: | |||||||||||||||||
Noninterest-bearing deposits | $829,763 | $858,953 | $938,572 | $888,981 | $911,990 | ||||||||||||
Interest-bearing deposits | 4,438,751 | 4,160,009 | 4,131,285 | 4,117,648 | 4,215,960 | ||||||||||||
Total deposits | 5,268,514 | 5,018,962 | 5,069,857 | 5,006,629 | 5,127,950 | ||||||||||||
Federal Home Loan Bank advances | 925,000 | 980,000 | 700,000 | 328,000 | 55,000 | ||||||||||||
Junior subordinated debentures | 22,681 | 22,681 | 22,681 | 22,681 | 22,681 | ||||||||||||
Operating lease liabilities | 28,622 | 29,558 | 30,189 | 30,491 | 31,169 | ||||||||||||
Other liabilities | 149,382 | 155,181 | 153,050 | 118,456 | 98,007 | ||||||||||||
Total liabilities | 6,394,199 | 6,206,382 | 5,975,777 | 5,506,257 | 5,334,807 | ||||||||||||
Shareholders’ Equity: | |||||||||||||||||
Common stock | 1,085 | 1,085 | 1,085 | 1,085 | 1,085 | ||||||||||||
Paid-in capital | 127,734 | 127,056 | 127,055 | 126,079 | 127,355 | ||||||||||||
Retained earnings | 495,231 | 492,043 | 485,163 | 475,889 | 465,295 | ||||||||||||
Accumulated other comprehensive (loss) income | (141,760) | (157,800) | (171,755) | (118,041) | (79,451) | ||||||||||||
Treasury stock, at cost | (17,307) | (8,715) | (9,274) | (8,378) | (1,092) | ||||||||||||
Total shareholders’ equity | 464,983 | 453,669 | 432,274 | 476,634 | 513,192 | ||||||||||||
Total liabilities and shareholders’ equity | $6,859,182 | $6,660,051 | $6,408,051 | $5,982,891 | $5,847,999 |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||
(Unaudited; Dollars and shares in thousands, except per share amounts) | |||||||||||||||||
For the Three Months Ended | |||||||||||||||||
Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||||||||
Interest income: | |||||||||||||||||
Interest and fees on loans | $59,749 | $53,644 | $45,125 | $36,602 | $33,930 | ||||||||||||
Interest on mortgage loans held for sale | 152 | 314 | 361 | 258 | 232 | ||||||||||||
Taxable interest on debt securities | 7,194 | 6,618 | 6,061 | 4,918 | 4,230 | ||||||||||||
Dividends on Federal Home Loan Bank stock | 597 | 330 | 88 | 63 | 67 | ||||||||||||
Other interest income | 1,070 | 855 | 503 | 188 | 78 | ||||||||||||
Total interest and dividend income | 68,762 | 61,761 | 52,138 | 42,029 | 38,537 | ||||||||||||
Interest expense: | |||||||||||||||||
Deposits | 19,589 | 12,301 | 6,656 | 3,963 | 3,103 | ||||||||||||
Federal Home Loan Bank advances | 11,626 | 7,822 | 3,234 | 413 | 244 | ||||||||||||
Junior subordinated debentures | 354 | 296 | 206 | 138 | 99 | ||||||||||||
Total interest expense | 31,569 | 20,419 | 10,096 | 4,514 | 3,446 | ||||||||||||
Net interest income | 37,193 | 41,342 | 42,042 | 37,515 | 35,091 | ||||||||||||
Provision for credit losses | 800 | 800 | 800 | (3,000) | 100 | ||||||||||||
Net interest income after provision for credit losses | 36,393 | 40,542 | 41,242 | 40,515 | 34,991 | ||||||||||||
Noninterest income: | |||||||||||||||||
Wealth management revenues | 8,663 | 8,624 | 9,525 | 10,066 | 10,531 | ||||||||||||
Mortgage banking revenues | 1,245 | 1,103 | 2,047 | 2,082 | 3,501 | ||||||||||||
Card interchange fees | 1,132 | 1,242 | 1,287 | 1,303 | 1,164 | ||||||||||||
Service charges on deposit accounts | 777 | 942 | 819 | 763 | 668 | ||||||||||||
Loan related derivative income | (51) | 745 | 1,041 | 669 | 301 | ||||||||||||
Income from bank-owned life insurance | 1,165 | 691 | 684 | 615 | 601 | ||||||||||||
Other income | 352 | 441 | 400 | 354 | 393 | ||||||||||||
Total noninterest income | 13,283 | 13,788 | 15,803 | 15,852 | 17,159 | ||||||||||||
Noninterest expense: | |||||||||||||||||
Salaries and employee benefits | 21,784 | 20,812 | 21,609 | 20,381 | 21,002 | ||||||||||||
Outsourced services | 3,496 | 3,568 | 3,552 | 3,375 | 3,242 | ||||||||||||
Net occupancy | 2,437 | 2,418 | 2,234 | 2,174 | 2,300 | ||||||||||||
Equipment | 1,028 | 1,002 | 939 | 938 | 918 | ||||||||||||
Legal, audit and professional fees | 896 | 987 | 693 | 677 | 770 | ||||||||||||
FDIC deposit insurance costs | 872 | 489 | 430 | 402 | 366 | ||||||||||||
Advertising and promotion | 408 | 713 | 799 | 724 | 351 | ||||||||||||
Amortization of intangibles | 212 | 212 | 215 | 216 | 217 | ||||||||||||
Other expenses | 2,431 | 3,158 | 2,596 | 2,190 | 2,053 | ||||||||||||
Total noninterest expense | 33,564 | 33,359 | 33,067 | 31,077 | 31,219 | ||||||||||||
Income before income taxes | 16,112 | 20,971 | 23,978 | 25,290 | 20,931 | ||||||||||||
Income tax expense | 3,300 | 4,398 | 5,310 | 5,333 | 4,448 | ||||||||||||
Net income | $12,812 | $16,573 | $18,668 | $19,957 | $16,483 | ||||||||||||
Net income available to common shareholders | $12,783 | $16,535 | $18,615 | $19,900 | $16,429 | ||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||
Basic | 17,074 | 17,180 | 17,174 | 17,303 | 17,331 | ||||||||||||
Diluted | 17,170 | 17,319 | 17,298 | 17,414 | 17,482 | ||||||||||||
Earnings per common share: | |||||||||||||||||
Basic | $0.75 | $0.96 | $1.08 | $1.15 | $0.95 | ||||||||||||
Diluted | $0.74 | $0.95 | $1.08 | $1.14 | $0.94 | ||||||||||||
Cash dividends declared per share | $0.56 | $0.56 | $0.54 | $0.54 | $0.54 |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||
SELECTED FINANCIAL HIGHLIGHTS | |||||||||||||||||
(Unaudited; Dollars and shares in thousands, except per share amounts) | |||||||||||||||||
Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||||||||
Share and Equity Related Data: | |||||||||||||||||
Book value per share | $27.37 | $26.40 | $25.17 | $27.73 | $29.61 | ||||||||||||
Tangible book value per share - Non-GAAP (1) | $23.36 | $22.42 | $21.17 | $23.72 | $25.62 | ||||||||||||
Market value per share | $34.66 | $47.18 | $46.48 | $48.37 | $52.50 | ||||||||||||
Shares issued at end of period | 17,363 | 17,363 | 17,363 | 17,363 | 17,363 | ||||||||||||
Shares outstanding at end of period | 16,986 | 17,183 | 17,171 | 17,190 | 17,332 | ||||||||||||
Capital Ratios (2): | |||||||||||||||||
Tier 1 risk-based capital | 11.28 | % | 11.69 | % | 11.97 | % | 12.78 | % | 13.32 | % | |||||||
Total risk-based capital | 12.01 | % | 12.37 | % | 12.65 | % | 13.51 | % | 14.15 | % | |||||||
Tier 1 leverage ratio | 8.25 | % | 8.65 | % | 8.99 | % | 9.42 | % | 9.46 | % | |||||||
Common equity tier 1 | 10.84 | % | 11.24 | % | 11.50 | % | 12.28 | % | 12.79 | % | |||||||
Balance Sheet Ratios: | |||||||||||||||||
Equity to assets | 6.78 | % | 6.81 | % | 6.75 | % | 7.97 | % | 8.78 | % | |||||||
Tangible equity to tangible assets - Non-GAAP (1) | 5.84 | % | 5.84 | % | 5.74 | % | 6.89 | % | 7.68 | % | |||||||
Loans to deposits (3) | 98.6 | % | 101.2 | % | 95.4 | % | 89.2 | % | 83.1 | % |
For the Three Months Ended | |||||||||||||||||
Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||||||||
Performance Ratios (4): | |||||||||||||||||
Net interest margin (5) | 2.33 | % | 2.65 | % | 2.82 | % | 2.71 | % | 2.57 | % | |||||||
Return on average assets (net income divided by average assets) | 0.77 | % | 1.01 | % | 1.19 | % | 1.37 | % | 1.14 | % | |||||||
Return on average tangible assets - Non-GAAP (1) | 0.78 | % | 1.03 | % | 1.20 | % | 1.39 | % | 1.15 | % | |||||||
Return on average equity (net income available for common shareholders divided by average equity) | 11.27 | % | 14.96 | % | 15.16 | % | 16.11 | % | 12.04 | % | |||||||
Return on average tangible equity - Non-GAAP (1) | 13.23 | % | 17.74 | % | 17.65 | % | 18.71 | % | 13.77 | % | |||||||
Efficiency ratio (6) | 66.5 | % | 60.5 | % | 57.2 | % | 58.2 | % | 59.7 | % |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||
SELECTED FINANCIAL HIGHLIGHTS | |||||||||||||||||
(Unaudited; Dollars in thousands) | |||||||||||||||||
For the Three Months Ended | |||||||||||||||||
Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||||||||
Wealth Management Results | |||||||||||||||||
Wealth Management Revenues: | |||||||||||||||||
Asset-based revenues | $8,429 | $8,448 | $9,302 | $9,641 | $10,211 | ||||||||||||
Transaction-based revenues | 234 | 176 | 223 | 425 | 320 | ||||||||||||
Total wealth management revenues | $8,663 | $8,624 | $9,525 | $10,066 | $10,531 | ||||||||||||
Assets Under Administration (AUA): | |||||||||||||||||
Balance at beginning of period | $5,961,990 | $6,322,757 | $6,650,097 | $7,492,893 | $7,784,211 | ||||||||||||
Net investment appreciation (depreciation) & income | 286,262 | 312,407 | (239,762) | (816,290) | (388,733) | ||||||||||||
Net client asset (outflows) inflows | (84,830) | (673,174) | (87,578) | (26,506) | 97,415 | ||||||||||||
Balance at end of period | $6,163,422 | $5,961,990 | $6,322,757 | $6,650,097 | $7,492,893 | ||||||||||||
Percentage of AUA that are managed assets | 91% | 91% | 91% | 91% | 92% | ||||||||||||
Mortgage Banking Results | |||||||||||||||||
Mortgage Banking Revenues: | |||||||||||||||||
Realized gains on loan sales, net (1) | $576 | $992 | $1,718 | $1,917 | $3,327 | ||||||||||||
Changes in fair value, net (2) | 86 | (426) | (226) | (330) | (242) | ||||||||||||
Loan servicing fee income, net (3) | 583 | 537 | 555 | 495 | 416 | ||||||||||||
Total mortgage banking revenues | $1,245 | $1,103 | $2,047 | $2,082 | $3,501 | ||||||||||||
Residential Mortgage Loan Originations: | |||||||||||||||||
Originations for retention in portfolio (4) | $109,768 | $228,579 | $225,132 | $263,762 | $164,401 | ||||||||||||
Originations for sale to secondary market (5) | 27,763 | 39,087 | 77,242 | 86,459 | 106,619 | ||||||||||||
Total mortgage loan originations | $137,531 | $267,666 | $302,374 | $350,221 | $271,020 | ||||||||||||
Residential Mortgage Loans Sold: | |||||||||||||||||
Sold with servicing rights retained | $17,114 | $27,085 | $34,659 | $23,478 | $14,627 | ||||||||||||
Sold with servicing rights released (5) | 12,214 | 27,470 | 40,665 | 56,263 | 115,501 | ||||||||||||
Total mortgage loans sold | $29,328 | $54,555 | $75,324 | $79,741 | $130,128 |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||
END OF PERIOD LOAN COMPOSITION | |||||||||||||||||
(Unaudited; Dollars in thousands) | |||||||||||||||||
Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||||||||
Loans: | |||||||||||||||||
Commercial real estate (1) | $1,909,136 | $1,829,304 | $1,762,687 | $1,609,618 | $1,628,620 | ||||||||||||
Commercial & industrial | 609,720 | 656,397 | 652,758 | 620,270 | 614,892 | ||||||||||||
Total commercial | 2,518,856 | 2,485,701 | 2,415,445 | 2,229,888 | 2,243,512 | ||||||||||||
Residential real estate (2) | 2,403,255 | 2,323,002 | 2,144,098 | 1,966,341 | 1,777,974 | ||||||||||||
Home equity | 288,878 | 285,715 | 273,742 | 267,785 | 246,097 | ||||||||||||
Other | 16,980 | 15,721 | 15,588 | 15,808 | 16,269 | ||||||||||||
Total consumer | 305,858 | 301,436 | 289,330 | 283,593 | 262,366 | ||||||||||||
Total loans | $5,227,969 | $5,110,139 | $4,848,873 | $4,479,822 | $4,283,852 |
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
Count | Balance | % of Total | Count | Balance | % of Total | ||||||||||||||||||
Commercial Real Estate Portfolio Segmentation: | |||||||||||||||||||||||
Multi-family dwelling | 130 | $488,219 | 26 | % | 127 | $469,233 | 26 | % | |||||||||||||||
Retail | 106 | 421,341 | 22 | 108 | 421,617 | 23 | |||||||||||||||||
Office | 53 | 264,429 | 14 | 53 | 257,551 | 14 | |||||||||||||||||
Hospitality | 42 | 218,328 | 11 | 33 | 214,829 | 12 | |||||||||||||||||
Industrial and warehouse | 44 | 201,701 | 11 | 42 | 192,717 | 11 | |||||||||||||||||
Healthcare | 18 | 165,978 | 9 | 17 | 136,225 | 7 | |||||||||||||||||
Commercial mixed use | 22 | 56,808 | 3 | 21 | 54,976 | 3 | |||||||||||||||||
Other | 36 | 92,332 | 4 | 34 | 82,156 | 4 | |||||||||||||||||
Commercial real estate loans | 451 | $1,909,136 | 100 | % | 435 | $1,829,304 | 100 | % | |||||||||||||||
Commercial & Industrial Portfolio Segmentation: | |||||||||||||||||||||||
Healthcare and social assistance | 69 | $166,102 | 27 | % | 69 | $193,052 | 29 | % | |||||||||||||||
Owner occupied and other real estate | 161 | 65,818 | 11 | 168 | 72,429 | 11 | |||||||||||||||||
Manufacturing | 56 | 60,510 | 10 | 55 | 60,601 | 9 | |||||||||||||||||
Retail | 54 | 58,870 | 10 | 50 | 56,012 | 9 | |||||||||||||||||
Transportation and warehousing | 17 | 50,269 | 8 | 20 | 51,347 | 8 | |||||||||||||||||
Educational services | 19 | 46,245 | 8 | 19 | 46,708 | 7 | |||||||||||||||||
Finance and insurance | 51 | 30,560 | 5 | 55 | 28,313 | 4 | |||||||||||||||||
Entertainment and recreation | 22 | 24,224 | 4 | 24 | 25,646 | 4 | |||||||||||||||||
Information | 5 | 23,637 | 4 | 5 | 23,948 | 4 | |||||||||||||||||
Accommodation and food services | 41 | 12,831 | 2 | 49 | 17,167 | 3 | |||||||||||||||||
Professional, scientific and technical | 35 | 6,042 | 1 | 37 | 6,451 | 1 | |||||||||||||||||
Public administration | 11 | 3,709 | 1 | 11 | 3,789 | 1 | |||||||||||||||||
Other | 156 | 60,903 | 9 | 162 | 70,934 | 10 | |||||||||||||||||
Commercial & industrial loans | 697 | $609,720 | 100 | % | 724 | $656,397 | 100 | % |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||
END OF PERIOD LOAN AND DEPOSIT COMPOSITION | |||||||||||||||||
(Unaudited; Dollars in thousands) | |||||||||||||||||
March 31, 2023 | December 31, 2022 | ||||||||||||||||
Balance | % of Total | Balance | % of Total | ||||||||||||||
Commercial Real Estate Loans by Property Location: | |||||||||||||||||
Connecticut | $695,512 | 36 | % | $691,780 | 38 | % | |||||||||||
Massachusetts | 624,411 | 33 | 566,717 | 31 | |||||||||||||
Rhode Island | 393,580 | 21 | 387,759 | 21 | |||||||||||||
Subtotal | 1,713,503 | 90 | 1,646,256 | 90 | |||||||||||||
All other states | 195,633 | 10 | 183,048 | 10 | |||||||||||||
Total commercial real estate loans | $1,909,136 | 100 | % | $1,829,304 | 100 | % | |||||||||||
Residential Real Estate Loans by Property Location: | |||||||||||||||||
Massachusetts | $1,757,176 | 73 | % | $1,698,240 | 73 | % | |||||||||||
Rhode Island | 460,097 | 19 | 446,010 | 19 | |||||||||||||
Connecticut | 157,906 | 7 | 153,323 | 7 | |||||||||||||
Subtotal | 2,375,179 | 99 | 2,297,573 | 99 | |||||||||||||
All other states | 28,076 | 1 | 25,429 | 1 | |||||||||||||
Total residential real estate loans | $2,403,255 | 100 | % | $2,323,002 | 100 | % |
Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||||||||
Deposits: | |||||||||||||||||
Noninterest-bearing demand deposits | $829,763 | $858,953 | $938,572 | $888,981 | $911,990 | ||||||||||||
Interest-bearing demand deposits (in-market) | 318,365 | 302,044 | 273,231 | 258,451 | 248,914 | ||||||||||||
NOW accounts | 828,700 | 871,875 | 869,984 | 887,678 | 893,603 | ||||||||||||
Money market accounts | 1,214,014 | 1,255,805 | 1,146,826 | 1,139,676 | 1,295,339 | ||||||||||||
Savings accounts | 544,604 | 576,250 | 600,568 | 572,251 | 566,461 | ||||||||||||
Time deposits (in-market) | 924,506 | 795,838 | 797,505 | 800,898 | 809,858 | ||||||||||||
In-market deposits | 4,659,952 | 4,660,765 | 4,626,686 | 4,547,935 | 4,726,165 | ||||||||||||
Wholesale brokered demand deposits | 1,233 | 31,153 | 31,044 | 31,003 | — | ||||||||||||
Wholesale brokered time deposits | 607,329 | 327,044 | 412,127 | 427,691 | 401,785 | ||||||||||||
Wholesale brokered deposits | 608,562 | 358,197 | 443,171 | 458,694 | 401,785 | ||||||||||||
Total deposits | $5,268,514 | $5,018,962 | $5,069,857 | $5,006,629 | $5,127,950 |
March 31, 2023 | December 31, 2022 | ||||||||||||||||
Balance | % of Total Deposits | Balance | % of Total Deposits | ||||||||||||||
Uninsured / Unprotected Deposits: | |||||||||||||||||
Uninsured deposits | $1,394,178 | 26 | % | $1,514,900 | 30 | % | |||||||||||
Less: fully-collateralized preferred deposits (1) | 319,308 | 6 | % | 329,868 | 7 | % | |||||||||||
Unprotected deposits | $1,074,870 | 20 | % | $1,185,032 | 24 | % |
March 31, 2023 | December 31, 2022 | |||||||
Contingent Liquidity: | ||||||||
Federal Home Loan Bank of Boston | $859,589 | $668,295 | ||||||
Federal Reserve Bank of Boston | 26,119 | 27,059 | ||||||
Unencumbered securities | 710,578 | 691,893 | ||||||
Total | $1,596,286 | $1,387,247 |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||
CREDIT & ASSET QUALITY DATA | |||||||||||||||||
(Unaudited; Dollars in thousands) | |||||||||||||||||
Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||||||||
Asset Quality Ratios: | |||||||||||||||||
Nonperforming assets to total assets | 0.21 | % | 0.19 | % | 0.19 | % | 0.21 | % | 0.22 | % | |||||||
Nonaccrual loans to total loans | 0.27 | % | 0.25 | % | 0.25 | % | 0.28 | % | 0.29 | % | |||||||
Total past due loans to total loans | 0.15 | % | 0.23 | % | 0.16 | % | 0.19 | % | 0.16 | % | |||||||
Allowance for credit losses on loans to nonaccrual loans | 277.40 | % | 296.02 | % | 304.10 | % | 292.55 | % | 311.67 | % | |||||||
Allowance for credit losses on loans to total loans | 0.74 | % | 0.74 | % | 0.76 | % | 0.81 | % | 0.92 | % | |||||||
Nonperforming Assets: | |||||||||||||||||
Commercial real estate | $1,601 | $— | $— | $— | $— | ||||||||||||
Commercial & industrial | 920 | — | — | — | — | ||||||||||||
Total commercial | 2,521 | — | — | — | — | ||||||||||||
Residential real estate | 10,470 | 11,894 | 11,700 | 11,815 | 11,916 | ||||||||||||
Home equity | 989 | 952 | 422 | 599 | 673 | ||||||||||||
Other consumer | — | — | — | — | — | ||||||||||||
Total consumer | 989 | 952 | 422 | 599 | 673 | ||||||||||||
Total nonaccrual loans | 13,980 | 12,846 | 12,122 | 12,414 | 12,589 | ||||||||||||
Other real estate owned | 683 | — | — | — | — | ||||||||||||
Total nonperforming assets | $14,663 | $12,846 | $12,122 | $12,414 | $12,589 | ||||||||||||
Past Due Loans (30 days or more past due): | |||||||||||||||||
Commercial real estate | $1,188 | $1,187 | $— | $— | $— | ||||||||||||
Commercial & industrial | 229 | 265 | 4 | 7 | 108 | ||||||||||||
Total commercial | 1,417 | 1,452 | 4 | 7 | 108 | ||||||||||||
Residential real estate | 5,730 | 8,875 | 7,256 | 7,794 | 6,467 | ||||||||||||
Home equity | 833 | 1,235 | 252 | 728 | 431 | ||||||||||||
Other consumer | 15 | 16 | 17 | 28 | 30 | ||||||||||||
Total consumer | 848 | 1,251 | 269 | 756 | 461 | ||||||||||||
Total past due loans | $7,995 | $11,578 | $7,529 | $8,557 | $7,036 | ||||||||||||
Accruing loans 90 days or more past due | $— | $— | $— | $— | $— | ||||||||||||
Nonaccrual loans included in past due loans | $5,648 | $7,196 | $7,059 | $6,817 | $5,707 | ||||||||||||
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||
CREDIT & ASSET QUALITY DATA | |||||||||||||||||
(Unaudited; Dollars in thousands) | |||||||||||||||||
For the Three Months Ended | |||||||||||||||||
Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||||||||
Nonaccrual Loan Activity: | |||||||||||||||||
Balance at beginning of period | $12,846 | $12,122 | $12,414 | $12,589 | $14,203 | ||||||||||||
Additions to nonaccrual status | 2,570 | 2,485 | 521 | 158 | 427 | ||||||||||||
Loans returned to accruing status | (110) | — | (400) | (236) | (63) | ||||||||||||
Loans charged-off | (61) | (62) | (63) | (23) | (36) | ||||||||||||
Loans transferred to other real estate owned | (683) | — | — | — | — | ||||||||||||
Payments, payoffs and other changes | (582) | (1,699) | (350) | (74) | (1,942) | ||||||||||||
Balance at end of period | $13,980 | $12,846 | $12,122 | $12,414 | $12,589 | ||||||||||||
Allowance for Credit Losses on Loans: | |||||||||||||||||
Balance at beginning of period | $38,027 | $36,863 | $36,317 | $39,236 | $39,088 | ||||||||||||
Provision for credit losses on loans (1) | 800 | 900 | 600 | (2,929) | — | ||||||||||||
Charge-offs | (61) | (62) | (63) | (23) | (36) | ||||||||||||
Recoveries | 14 | 326 | 9 | 33 | 184 | ||||||||||||
Balance at end of period | $38,780 | $38,027 | $36,863 | $36,317 | $39,236 | ||||||||||||
Allowance for Credit Losses on Unfunded Commitments: | |||||||||||||||||
Balance at beginning of period | $2,290 | $2,390 | $2,190 | $2,261 | $2,161 | ||||||||||||
Provision for credit losses on unfunded commitments (1) | — | (100) | 200 | (71) | 100 | ||||||||||||
Balance at end of period (2) | $2,290 | $2,290 | $2,390 | $2,190 | $2,261 |
For the Three Months Ended | |||||||||||||||||
Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||||||||
Net Loan Charge-Offs (Recoveries): | |||||||||||||||||
Commercial real estate | $— | ($300) | $— | $— | ($145) | ||||||||||||
Commercial & industrial | 6 | 10 | 9 | (11) | (1) | ||||||||||||
Total commercial | 6 | (290) | 9 | (11) | (146) | ||||||||||||
Residential real estate | — | — | — | — | (21) | ||||||||||||
Home equity | (1) | (8) | — | (2) | (2) | ||||||||||||
Other consumer | 42 | 34 | 45 | 3 | 21 | ||||||||||||
Total consumer | 41 | 26 | 45 | 1 | 19 | ||||||||||||
Total | $47 | ($264) | $54 | ($10) | ($148) | ||||||||||||
Net charge-offs (recoveries) to average loans - annualized | — | % | (0.02 | %) | — | % | — | % | (0.01 | %) |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||||||||||||||||||||
CONSOLIDATED AVERAGE BALANCE SHEETS (FTE Basis) | |||||||||||||||||||||||||||||||||||
(Unaudited; Dollars in thousands) | |||||||||||||||||||||||||||||||||||
For the Three Months Ended | March 31, 2023 | December 31, 2022 | 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 | $103,269 | $1,070 | 4.20 | % | $94,196 | $855 | 3.60 | % | $9,073 | $215 | 0.60 | % | |||||||||||||||||||||||
Mortgage loans held for sale | 13,132 | 152 | 4.69 | 28,214 | 314 | 4.42 | (15,082) | (162) | 0.27 | ||||||||||||||||||||||||||
Taxable debt securities | 1,193,852 | 7,194 | 2.44 | 1,165,276 | 6,618 | 2.25 | 28,576 | 576 | 0.19 | ||||||||||||||||||||||||||
FHLB stock | 46,102 | 597 | 5.25 | 35,485 | 330 | 3.69 | 10,617 | 267 | 1.56 | ||||||||||||||||||||||||||
Commercial real estate | 1,859,331 | 25,300 | 5.52 | 1,771,999 | 22,300 | 4.99 | 87,332 | 3,000 | 0.53 | ||||||||||||||||||||||||||
Commercial & industrial | 630,778 | 9,070 | 5.83 | 645,882 | 8,643 | 5.31 | (15,104) | 427 | 0.52 | ||||||||||||||||||||||||||
Total commercial | 2,490,109 | 34,370 | 5.60 | 2,417,881 | 30,943 | 5.08 | 72,228 | 3,427 | 0.52 | ||||||||||||||||||||||||||
Residential real estate | 2,353,266 | 21,664 | 3.73 | 2,214,207 | 19,490 | 3.49 | 139,059 | 2,174 | 0.24 | ||||||||||||||||||||||||||
Home equity | 286,348 | 3,759 | 5.32 | 280,682 | 3,386 | 4.79 | 5,666 | 373 | 0.53 | ||||||||||||||||||||||||||
Other | 16,405 | 184 | 4.55 | 15,218 | 174 | 4.54 | 1,187 | 10 | 0.01 | ||||||||||||||||||||||||||
Total consumer | 302,753 | 3,943 | 5.28 | 295,900 | 3,560 | 4.77 | 6,853 | 383 | 0.51 | ||||||||||||||||||||||||||
Total loans | 5,146,128 | 59,977 | 4.73 | 4,927,988 | 53,993 | 4.35 | 218,140 | 5,984 | 0.38 | ||||||||||||||||||||||||||
Total interest-earning assets | 6,502,483 | 68,990 | 4.30 | 6,251,159 | 62,110 | 3.94 | 251,324 | 6,880 | 0.36 | ||||||||||||||||||||||||||
Noninterest-earning assets | 241,513 | 229,713 | 11,800 | ||||||||||||||||||||||||||||||||
Total assets | $6,743,996 | $6,480,872 | $263,124 | ||||||||||||||||||||||||||||||||
Liabilities and Shareholders' Equity: | |||||||||||||||||||||||||||||||||||
Interest-bearing demand deposits (in-market) | $298,158 | $2,639 | 3.59 | % | $287,311 | $1,777 | 2.45 | % | $10,847 | $862 | 1.14 | % | |||||||||||||||||||||||
NOW accounts | 821,590 | 358 | 0.18 | 854,055 | 370 | 0.17 | (32,465) | (12) | 0.01 | ||||||||||||||||||||||||||
Money market accounts | 1,253,141 | 7,576 | 2.45 | 1,213,890 | 4,970 | 1.62 | 39,251 | 2,606 | 0.83 | ||||||||||||||||||||||||||
Savings accounts | 566,258 | 314 | 0.22 | 586,868 | 227 | 0.15 | (20,610) | 87 | 0.07 | ||||||||||||||||||||||||||
Time deposits (in-market) | 830,574 | 4,577 | 2.23 | 798,482 | 2,633 | 1.31 | 32,092 | 1,944 | 0.92 | ||||||||||||||||||||||||||
Interest-bearing in-market deposits | 3,769,721 | 15,464 | 1.66 | 3,740,606 | 9,977 | 1.06 | 29,115 | 5,487 | 0.60 | ||||||||||||||||||||||||||
Wholesale brokered demand deposits | 16,257 | 177 | 4.42 | 31,082 | 282 | 3.60 | (14,825) | (105) | 0.82 | ||||||||||||||||||||||||||
Wholesale brokered time deposits | 427,051 | 3,948 | 3.75 | 355,618 | 2,042 | 2.28 | 71,433 | 1,906 | 1.47 | ||||||||||||||||||||||||||
Wholesale brokered deposits | 443,308 | 4,125 | 3.77 | 386,700 | 2,324 | 2.38 | 56,608 | 1,801 | 1.39 | ||||||||||||||||||||||||||
Total interest-bearing deposits | 4,213,029 | 19,589 | 1.89 | 4,127,306 | 12,301 | 1.18 | 85,723 | 7,288 | 0.71 | ||||||||||||||||||||||||||
FHLB advances | 1,044,056 | 11,626 | 4.52 | 796,087 | 7,822 | 3.90 | 247,969 | 3,804 | 0.62 | ||||||||||||||||||||||||||
Junior subordinated debentures | 22,681 | 354 | 6.33 | 22,681 | 296 | 5.18 | — | 58 | 1.15 | ||||||||||||||||||||||||||
Total interest-bearing liabilities | 5,279,766 | 31,569 | 2.42 | 4,946,074 | 20,419 | 1.64 | 333,692 | 11,150 | 0.78 | ||||||||||||||||||||||||||
Noninterest-bearing demand deposits | 835,298 | 917,460 | (82,162) | ||||||||||||||||||||||||||||||||
Other liabilities | 168,826 | 178,991 | (10,165) | ||||||||||||||||||||||||||||||||
Shareholders' equity | 460,106 | 438,347 | 21,759 | ||||||||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $6,743,996 | $6,480,872 | $263,124 | ||||||||||||||||||||||||||||||||
Net interest income (FTE) | $37,421 | $41,691 | ($4,270) | ||||||||||||||||||||||||||||||||
Interest rate spread | 1.88 | % | 2.30 | % | (0.42 | %) | |||||||||||||||||||||||||||||
Net interest margin | 2.33 | % | 2.65 | % | (0.32 | %) |
For the Three Months Ended | Mar 31, 2023 | Dec 31, 2022 | Change | ||||||||
Commercial loans | $228 | $349 | ($121) | ||||||||
Total | $228 | $349 | ($121) |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||||
SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures | |||||||||||||||||
(Unaudited; Dollars in thousands, except per share amounts) | |||||||||||||||||
Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||||||||
Tangible Book Value per Share: | |||||||||||||||||
Total shareholders' equity, as reported | $464,983 | $453,669 | $432,274 | $476,634 | $513,192 | ||||||||||||
Less: | |||||||||||||||||
Goodwill | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | ||||||||||||
Identifiable intangible assets, net | 4,342 | 4,554 | 4,766 | 4,981 | 5,198 | ||||||||||||
Total tangible shareholders' equity | $396,732 | $385,206 | $363,599 | $407,744 | $444,085 | ||||||||||||
Shares outstanding, as reported | 16,986 | 17,183 | 17,171 | 17,190 | 17,332 | ||||||||||||
Book value per share - GAAP | $27.37 | $26.40 | $25.17 | $27.73 | $29.61 | ||||||||||||
Tangible book value per share - Non-GAAP | $23.36 | $22.42 | $21.18 | $23.72 | $25.62 | ||||||||||||
Tangible Equity to Tangible Assets: | |||||||||||||||||
Total tangible shareholders' equity | $396,732 | $385,206 | $363,599 | $407,744 | $444,085 | ||||||||||||
Total assets, as reported | $6,859,182 | $6,660,051 | $6,408,051 | $5,982,891 | $5,847,999 | ||||||||||||
Less: | |||||||||||||||||
Goodwill | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | ||||||||||||
Identifiable intangible assets, net | 4,342 | 4,554 | 4,766 | 4,981 | 5,198 | ||||||||||||
Total tangible assets | $6,790,931 | $6,591,588 | $6,339,376 | $5,914,001 | $5,778,892 | ||||||||||||
Equity to assets - GAAP | 6.78 | % | 6.81 | % | 6.75 | % | 7.97 | % | 8.78 | % | |||||||
Tangible equity to tangible assets - Non-GAAP | 5.84 | % | 5.84 | % | 5.74 | % | 6.89 | % | 7.68 | % |
For the Three Months Ended | |||||||||||||||||
Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||||||||
Return on Average Tangible Assets: | |||||||||||||||||
Net income, as reported | $12,812 | $16,573 | $18,668 | $19,957 | $16,483 | ||||||||||||
Total average assets, as reported | $6,743,996 | $6,480,872 | $6,216,129 | $5,841,332 | $5,864,668 | ||||||||||||
Less average balances of: | |||||||||||||||||
Goodwill | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | ||||||||||||
Identifiable intangible assets, net | 4,445 | 4,657 | 4,871 | 5,086 | 5,303 | ||||||||||||
Total average tangible assets | $6,675,642 | $6,412,306 | $6,147,349 | $5,772,337 | $5,795,456 | ||||||||||||
Return on average assets - GAAP | 0.77 | % | 1.01 | % | 1.19 | % | 1.37 | % | 1.14 | % | |||||||
Return on average tangible assets - Non-GAAP | 0.78 | % | 1.03 | % | 1.20 | % | 1.39 | % | 1.15 | % | |||||||
Return on Average Tangible Equity: | |||||||||||||||||
Net income available to common shareholders, as reported | $12,783 | $16,535 | $18,615 | $19,900 | $16,429 | ||||||||||||
Total average equity, as reported | $460,106 | $438,347 | $487,230 | $495,573 | $553,185 | ||||||||||||
Less average balances of: | |||||||||||||||||
Goodwill | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | ||||||||||||
Identifiable intangible assets, net | 4,445 | 4,657 | 4,871 | 5,086 | 5,303 | ||||||||||||
Total average tangible equity | $391,752 | $369,781 | $418,450 | $426,578 | $483,973 | ||||||||||||
Return on average equity - GAAP | 11.27 | % | 14.96 | % | 15.16 | % | 16.11 | % | 12.04 | % | |||||||
Return on average tangible equity - Non-GAAP | 13.23 | % | 17.74 | % | 17.65 | % | 18.71 | % | 13.77 | % |