WESTERLY, R.I., Oct. 23,
2023 /PRNewswire/ -- Washington Trust Bancorp, Inc.
(Nasdaq: WASH), parent company of The Washington Trust Company,
today announced third quarter 2023 net income of $11.2 million, or $0.65 per diluted share, compared to net income
of $11.3 million, or $0.66 per diluted share, for the second quarter
of 2023.
"Washington Trust's third quarter performance reflects the
Corporation's core strength, resilience, and ability to manage
through difficult operating conditions," stated Edward O. Handy III, Washington Trust Chairman
and Chief Executive Officer. "We continue to attract new business
across all lines, which is challenging in the current rate and
competitive environment. We value our employees, customers,
communities, and shareholders and remain committed to enhancing the
value of these relationships over time."
Selected financial highlights for the third quarter include:
- Returns on average equity and average assets for the third
quarter were 9.65% and 0.62%, respectively, compared to 9.67% and
0.65%, respectively, for the preceding quarter.
- Net interest income totaled $33.8
million in the third quarter, up by $251 thousand, or 1%, from the preceding quarter.
The net interest margin was 1.97% in the third quarter, compared to
2.03% in the preceding quarter, reflecting the challenging interest
rate environment.
- In the third quarter, a provision for credit losses of
$500 thousand was recognized, down by
$200 thousand from the provision
recognized in the preceding quarter.
- Noninterest income totaled $15.2
million in the third quarter, up by $901 thousand, or 6%, from the preceding quarter,
reflecting increases in loan related derivative income and mortgage
banking revenues.
- Total loans amounted to $5.6
billion, up by $230 million,
or 4%, from the end of the preceding quarter. Total loans were up
by $762 million, or 16%, from a year
ago.
- In-market deposits (total deposits less wholesale brokered
deposits) amounted to $4.7 billion,
up by $35 million, or 1%, from
June 30, 2023. In-market deposits
were up by $121 million, or 3%, from
a year ago.
Net Interest Income
Net interest income was $33.8 million
for the third quarter of 2023, up by $251 thousand, or 1%,
from the second quarter of 2023. The net interest margin was
1.97% for the third quarter, down by 6 basis points from the
preceding quarter. Linked quarter changes included:
- Average interest-earning assets increased by $167 million, including an increase of
$187 million in average loans. The
yield on interest-earning assets for the third quarter was 4.69%,
up by 16 basis points from the preceding quarter.
- Average interest-bearing liabilities increased by $160 million, reflecting increases in average
wholesale funding balances of $83
million and average in-market deposits of $77 million. The cost of interest-bearing
liabilities for the third quarter of 2023 was 3.26%, up by 24 basis
points from the preceding quarter.
Noninterest Income
Noninterest income totaled $15.2
million for the third quarter of 2023, up by
$901 thousand, or 6%, from the second quarter of 2023.
Linked quarter changes included:
- Wealth management revenues amounted to $8.9 million in the third quarter of 2023, down
by $100 thousand, or 1%, on a linked
quarter basis. This included a decrease of $221 thousand, or 45%, in transaction-based
revenues, partially offset by an increase of $121 thousand, or 1%, in asset-based revenues.
The linked quarter decline in transaction-based revenues was mainly
due to lower tax servicing fee income in the third quarter, as this
income is concentrated in the first half of the year. The linked
quarter increase in asset-based revenues reflected an increase in
the average balance of wealth management assets under
administration ("AUA"), which was up by approximately $140 million, or 2%, from the preceding
quarter.
The end of period AUA balance at September
30, 2023 amounted to $6.1
billion, down by $219 million,
or 3%, from June 30, 2023. This
decrease reflected net investment depreciation of $154 million, as well as net client asset
outflows of $65 million.
- Mortgage banking revenues totaled $2.1
million for the third quarter of 2023, up by $355 thousand, or 20%, from the second quarter of
2023, reflecting higher realized gains on loan sales, partially
offset by changes in the fair value of mortgage loans held for sale
and forward loan commitments. Realized gains increased by
$919 thousand, or 111%, from the
preceding quarter, due to a higher sales yield, as well as a higher
volume of loans sold. Loans sold amounted to $88.6 million in the third quarter of 2023, up by
$24.1 million, or 37%, from the
preceding quarter.
- Loan related derivative income from interest rate swap
contracts with commercial borrowers in the third quarter of 2023
totaled $1.1 million, up by
$835 thousand, or 338%, from the
preceding quarter.
- Income from bank-owned life insurance totaled $710 thousand in the third quarter of 2023, down
by $169 thousand, or 19%, from the
preceding quarter. This decline was due to the recognition of
$182 thousand of income associated
with life insurance proceeds in the preceding quarter.
Noninterest Expense
Noninterest expense totaled $34.4
million for the third quarter of 2023, up by $1.4 million, or 4%, from the second quarter of
2023. Linked quarter changes included:
- Salaries and employee benefits expense amounted to $21.6 million, up by $1.0
million, or 5%, from the preceding quarter as
performance-based compensation accruals were reduced in the second
quarter.
- Advertising and promotion expense totaled $789 thousand, up by $362
thousand, or 85%, from the second quarter of 2023, largely
due to the timing of such activities.
Income Tax
Income tax expense totaled $2.9
million for the third quarter of 2023, up by
$73 thousand from the preceding quarter. The effective
tax rate for the third quarter of 2023 was 20.8%, compared to 20.2%
in the preceding quarter. Based on current federal and
applicable state income tax statutes, the Corporation currently
expects its full-year 2023 effective tax rate to be approximately
20.8%.
Investment Securities
The securities portfolio totaled $959
million at September 30, 2023, down by
$63 million, or 6%, from June 30, 2023, reflecting a
decrease of $43 million in the fair value of available for
sale debt securities due to changes in market interest rates, as
well as routine pay-downs. The securities portfolio
represented 13% of total assets at September 30, 2023,
compared to 15% of total assets at June 30, 2023.
Loans
Total loans amounted to $5.6 billion at September 30, 2023, up
by $230 million, or 4%, from the end
of the preceding quarter. Linked quarter changes
included:
- Commercial loans increased by $123
million, or 5%, from June 30,
2023, reflecting originations and advances of approximately
$195 million, partially offset by
principal payments of approximately $72
million.
- Residential real estate loans increased by $101 million, or 4%, from June 30, 2023. In the third quarter of 2023,
residential real estate loans originated for portfolio amounted to
$162 million, up by $13 million, or 9%, from the preceding
quarter.
- The consumer loan portfolio increased by $6 million, or 2%, from June 30, 2023, largely reflecting growth in home
equity lines and loans.
Deposits and Borrowings
Total deposits, which include wholesale brokered deposits, amounted
to $5.4 billion at
September 30, 2023, up by $101 million, or 2%, from the
end of the preceding quarter. Uninsured deposits, after
exclusions (as detailed in the financial tables below) amounted to
$979 million, or 18% of total
deposits, at September 30, 2023.
In-market deposits, which exclude wholesale brokered deposits,
amounted to $4.7 billion at
September 30, 2023, up by $35 million, or 1%, from
June 30, 2023. As of September 30, 2023,
in-market deposits were approximately 59% retail and 41%
commercial. The average size of our in-market deposit
accounts was approximately $37 thousand at
September 30, 2023.
Wholesale funding was utilized in the third quarter to fund
balance sheet growth. FHLB advances totaled $1 billion
at September 30, 2023, up by $80 million, or 8%, from
June 30, 2023. Wholesale brokered deposits amounted to
$668 million and were up by $67 million, or 11%, from
June 30, 2023. As of September 30, 2023, Washington
Trust has contingent liquidity of $1.8 billion, consisting of
noninterest-bearing cash, unencumbered securities and unused
collateralized borrowing capacity.
Asset Quality
Nonaccrual loans were $33.7 million, or 0.60% of total loans, at
September 30, 2023, compared to $10.4 million, or 0.19% of total loans, at
June 30, 2023. The increase in nonaccrual loans was
largely due to two commercial real estate loans that were placed on
nonaccrual status in the quarter. The composition of
nonaccrual loans at September 30, 2023 was 69% commercial and
31% residential and consumer.
Past due loans were $9.7 million,
or 0.17% of total loans, at September 30, 2023, compared to
$6.3 million, or 0.12% of total
loans, at June 30, 2023. The composition of past due
loans at September 30, 2023 was essentially 100% residential
and consumer.
The allowance for credit losses ("ACL") on loans amounted to
$40.2 million, or 0.72% of total
loans, at September 30, 2023, compared to $39.3 million, or 0.73% of total loans, at
June 30, 2023. The ACL on unfunded commitments, included
in other liabilities on the Consolidated Balance Sheets, was
$2.0 million at
September 30, 2023, compared to $2.4 million at June 30, 2023.
The provision for credit losses totaled $500 thousand in the third quarter of 2023, down
by $200 thousand from the preceding quarter. The
provision for credit losses in the third quarter of 2023 was
composed of a provision for credit losses on loans of
$900 thousand and a negative provision (or a benefit) for
credit losses on unfunded commitments of $400 thousand.
In the third quarter of 2023, net charge-offs of
$30 thousand were recognized, compared to $37 thousand in
the preceding quarter.
Capital and Dividends
Total shareholders' equity was $431.4 million at September 30, 2023,
down by $27.8 million, or 6%, from
June 30, 2023. The accumulated other comprehensive
income component of shareholders' equity decreased by $29.9 million in the third quarter,
reflecting a decrease in the fair value of available for sale debt
securities due to changes in market interest rates. The
decrease in shareholders' equity also included $9.6 million in dividend declarations.
These decreases were partially offset by net income of $11.2 million in the third quarter.
The Board of Directors declared a quarterly dividend of
56 cents per share for the quarter ended September 30,
2023. The dividend was paid on October 12, 2023 to
shareholders of record on October 2, 2023.
Capital levels at September 30, 2023 exceeded the
regulatory minimum levels to be considered well capitalized, with a
total risk-based capital ratio of 11.48% at September 30,
2023, compared to 11.81% at June 30, 2023. Book value
per share was $25.35 at
September 30, 2023, compared to $26.98 at June 30, 2023.
Conference Call
Washington Trust will host a conference call to discuss its third
quarter results, business highlights and outlook on Tuesday,
October 24, 2023 at 8:30 a.m.
(Eastern Time). Individuals may dial in to the call at
1-833-470-1428 and enter Access Code 431699. An audio replay
of the call will be available, shortly after the conclusion of the
call, by dialing 1-866-813-9403 and entering the Replay Access Code
734631. The audio replay will be available through
November 7, 2023. Also, a webcast of the call will be
posted in the Investor Relations section of Washington Trust's
website, https://ir.washtrust.com, and will be available through
December 31, 2023.
Background
Washington Trust Bancorp, Inc. is the parent of The Washington
Trust Company. Founded in 1800, Washington Trust is the
oldest community bank in the nation, the largest state-chartered
bank headquartered in Rhode Island
and one of the Northeast's premier financial services
companies. Washington Trust offers a full range of financial
services, including commercial banking, mortgage banking, personal
banking and wealth management and trust services through its
offices located in Rhode Island,
Connecticut and
Massachusetts. The Corporation's common stock trades on
NASDAQ under the symbol WASH. Investor information is
available on the Corporation's website at
https://ir.washtrust.com.
Forward-Looking Statements
This press release contains statements that are "forward-looking
statements." We may also make forward-looking statements in
other documents we file with the U.S. Securities and Exchange
Commission ("SEC"), in our annual reports to shareholders, in press
releases and other written materials, and in oral statements made
by our officers, directors or employees. You can identify
forward-looking statements by the use of the words "believe,"
"expect," "anticipate," "intend," "estimate," "assume," "outlook,"
"will," "should," and other expressions that predict or indicate
future events and trends and which do not relate to historical
matters. You should not rely on forward-looking statements,
because they involve known and unknown risks, uncertainties and
other factors, some of which are beyond our control. These
risks, uncertainties and other factors may cause our actual
results, performance or achievements to be materially different
from the anticipated future results, performance or achievements
expressed or implied by the forward-looking statements.
Some of the factors that might cause these differences include
the following:
- changes in general business and economic conditions on a
national basis and in the local markets in which we operate;
- changes in customer behavior due to political, business and
economic conditions, including inflation and concerns about
liquidity;
- interest rate changes or volatility, as well as changes in the
balance and mix of loans and deposits;
- changes in loan demand and collectability;
- the possibility that future credit losses are higher than
currently expected due to changes in economic assumptions or
adverse economic developments;
- ongoing volatility in national and international financial
markets;
- reductions in the market value or outflows of wealth management
AUA;
- decreases in the value of securities and other assets;
- increases in defaults and charge-off rates;
- changes in the size and nature of our competition;
- changes in legislation or regulation and accounting principles,
policies and guidelines;
- operational risks including, but not limited to, changes in
information technology, cybersecurity incidents,
fraud, natural disasters, war, terrorism, civil unrest
and future pandemics;
- regulatory, litigation and reputational risks; and
- changes in the assumptions used in making such forward-looking
statements.
In addition, the factors described under "Risk Factors" in Item
1A of our Annual Report on Form 10-K for the fiscal year ended
December 31, 2022, as updated by our Quarterly Reports on Form
10-Q and other filings submitted to the SEC, may result in these
differences. You should carefully review all of these factors and
you should be aware that there may be other factors that could
cause these differences. These forward-looking statements were
based on information, plans and estimates at the date of this
report, and we assume no obligation to update any forward-looking
statements to reflect changes in underlying assumptions or factors,
new information, future events or other changes.
Supplemental Information - Explanation of Non-GAAP Financial
Measures
In addition to results presented in accordance with generally
accepted accounting principles ("GAAP"), this press release
contains certain non-GAAP financial measures. Washington
Trust's management believes that the supplemental non-GAAP
information, which consists of measurements and ratios based on
tangible equity and tangible assets, is utilized by regulators and
market analysts to evaluate a company's financial condition and
therefore, such information is useful to investors. These
disclosures should not be viewed as a substitute for financial
results determined in accordance with GAAP, nor are they
necessarily comparable to non-GAAP performance measures, which may
be presented by other companies. Because non-GAAP financial
measures are not standardized, it may not be possible to compare
these financial measures with other companies' non-GAAP financial
measures having the same or similar names.
Washington Trust
Bancorp, Inc. and Subsidiaries
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited; Dollars in
thousands)
|
|
|
|
|
|
|
|
Sep 30,
2023
|
Jun 30,
2023
|
Mar 31,
2023
|
Dec 31,
2022
|
Sep 30,
2022
|
Assets:
|
|
|
|
|
|
Cash and due from
banks
|
$109,432
|
$124,877
|
$134,989
|
$115,492
|
$130,066
|
Short-term
investments
|
3,577
|
3,439
|
3,291
|
2,930
|
2,773
|
Mortgage loans held for
sale, at fair value
|
10,550
|
20,872
|
7,445
|
8,987
|
24,054
|
Available for sale debt
securities, at fair value
|
958,990
|
1,022,458
|
1,054,747
|
993,928
|
982,573
|
Federal Home Loan Bank
stock, at cost
|
52,668
|
45,868
|
42,501
|
43,463
|
32,940
|
Loans:
|
|
|
|
|
|
Total loans
|
5,611,115
|
5,381,113
|
5,227,969
|
5,110,139
|
4,848,873
|
Less: allowance for
credit losses on loans
|
40,213
|
39,343
|
38,780
|
38,027
|
36,863
|
Net loans
|
5,570,902
|
5,341,770
|
5,189,189
|
5,072,112
|
4,812,010
|
Premises and equipment,
net
|
31,976
|
32,591
|
31,719
|
31,550
|
30,152
|
Operating lease
right-of-use assets
|
27,882
|
28,633
|
26,170
|
27,156
|
27,788
|
Investment in
bank-owned life insurance
|
103,003
|
102,293
|
101,782
|
102,182
|
101,491
|
Goodwill
|
63,909
|
63,909
|
63,909
|
63,909
|
63,909
|
Identifiable intangible
assets, net
|
3,919
|
4,130
|
4,342
|
4,554
|
4,766
|
Other assets
|
246,667
|
220,920
|
199,098
|
193,788
|
195,529
|
Total assets
|
$7,183,475
|
$7,011,760
|
$6,859,182
|
$6,660,051
|
$6,408,051
|
Liabilities:
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
Noninterest-bearing
deposits
|
$773,261
|
$758,242
|
$829,763
|
$858,953
|
$938,572
|
Interest-bearing
deposits
|
4,642,302
|
4,556,236
|
4,438,751
|
4,160,009
|
4,131,285
|
Total
deposits
|
5,415,563
|
5,314,478
|
5,268,514
|
5,018,962
|
5,069,857
|
Federal Home Loan Bank
advances
|
1,120,000
|
1,040,000
|
925,000
|
980,000
|
700,000
|
Junior subordinated
debentures
|
22,681
|
22,681
|
22,681
|
22,681
|
22,681
|
Operating lease
liabilities
|
30,554
|
31,302
|
28,622
|
29,558
|
30,189
|
Other
liabilities
|
163,273
|
144,138
|
149,382
|
155,181
|
153,050
|
Total
liabilities
|
6,752,071
|
6,552,599
|
6,394,199
|
6,206,382
|
5,975,777
|
Shareholders'
Equity:
|
|
|
|
|
|
Common stock
|
1,085
|
1,085
|
1,085
|
1,085
|
1,085
|
Paid-in
capital
|
126,310
|
125,685
|
127,734
|
127,056
|
127,055
|
Retained
earnings
|
498,521
|
496,996
|
495,231
|
492,043
|
485,163
|
Accumulated other
comprehensive (loss) income
|
(178,734)
|
(148,827)
|
(141,760)
|
(157,800)
|
(171,755)
|
Treasury stock, at
cost
|
(15,778)
|
(15,778)
|
(17,307)
|
(8,715)
|
(9,274)
|
Total shareholders'
equity
|
431,404
|
459,161
|
464,983
|
453,669
|
432,274
|
Total liabilities and
shareholders' equity
|
$7,183,475
|
$7,011,760
|
$6,859,182
|
$6,660,051
|
$6,408,051
|
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
|
|
For the Nine Months
Ended
|
|
Sep 30,
2023
|
Jun 30,
2023
|
Mar 31,
2023
|
Dec 31,
2022
|
Sep 30,
2022
|
|
Sep 30,
2023
|
Sep 30,
2022
|
Interest
income:
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
$70,896
|
$65,449
|
$59,749
|
$53,644
|
$45,125
|
|
$196,094
|
$115,657
|
Interest on mortgage
loans held for sale
|
332
|
241
|
152
|
314
|
361
|
|
725
|
851
|
Taxable interest on
debt securities
|
7,271
|
7,403
|
7,194
|
6,618
|
6,061
|
|
21,868
|
15,209
|
Dividends on Federal
Home Loan Bank stock
|
878
|
858
|
597
|
330
|
88
|
|
2,333
|
218
|
Other interest
income
|
1,344
|
1,279
|
1,070
|
855
|
503
|
|
3,693
|
769
|
Total interest and
dividend income
|
80,721
|
75,230
|
68,762
|
61,761
|
52,138
|
|
224,713
|
132,704
|
Interest
expense:
|
|
|
|
|
|
|
|
|
Deposits
|
34,069
|
29,704
|
19,589
|
12,301
|
6,656
|
|
83,362
|
13,722
|
Federal Home Loan Bank
advances
|
12,497
|
11,652
|
11,626
|
7,822
|
3,234
|
|
35,775
|
3,891
|
Junior subordinated
debentures
|
404
|
374
|
354
|
296
|
206
|
|
1,132
|
443
|
Total interest
expense
|
46,970
|
41,730
|
31,569
|
20,419
|
10,096
|
|
120,269
|
18,056
|
Net interest
income
|
33,751
|
33,500
|
37,193
|
41,342
|
42,042
|
|
104,444
|
114,648
|
Provision for credit
losses
|
500
|
700
|
800
|
800
|
800
|
|
2,000
|
(2,100)
|
Net interest income
after provision for credit losses
|
33,251
|
32,800
|
36,393
|
40,542
|
41,242
|
|
102,444
|
116,748
|
Noninterest
income:
|
|
|
|
|
|
|
|
|
Wealth management
revenues
|
8,948
|
9,048
|
8,663
|
8,624
|
9,525
|
|
26,659
|
30,122
|
Mortgage banking
revenues
|
2,108
|
1,753
|
1,245
|
1,103
|
2,047
|
|
5,106
|
7,630
|
Card interchange
fees
|
1,267
|
1,268
|
1,132
|
1,242
|
1,287
|
|
3,667
|
3,754
|
Service charges on
deposit accounts
|
674
|
667
|
777
|
942
|
819
|
|
2,118
|
2,250
|
Loan related derivative
income
|
1,082
|
247
|
(51)
|
745
|
1,041
|
|
1,278
|
2,011
|
Income from bank-owned
life insurance
|
710
|
879
|
1,165
|
691
|
684
|
|
2,754
|
1,900
|
Other income
|
437
|
463
|
352
|
441
|
400
|
|
1,252
|
1,147
|
Total noninterest
income
|
15,226
|
14,325
|
13,283
|
13,788
|
15,803
|
|
42,834
|
48,814
|
Noninterest
expense:
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
21,622
|
20,588
|
21,784
|
20,812
|
21,609
|
|
63,994
|
62,992
|
Outsourced
services
|
3,737
|
3,621
|
3,496
|
3,568
|
3,552
|
|
10,854
|
10,169
|
Net
occupancy
|
2,387
|
2,416
|
2,437
|
2,418
|
2,234
|
|
7,240
|
6,708
|
Equipment
|
1,107
|
1,050
|
1,028
|
1,002
|
939
|
|
3,185
|
2,795
|
Legal, audit and
professional fees
|
1,058
|
978
|
896
|
987
|
693
|
|
2,932
|
2,140
|
FDIC deposit insurance
costs
|
1,185
|
1,371
|
872
|
489
|
430
|
|
3,428
|
1,198
|
Advertising and
promotion
|
789
|
427
|
408
|
713
|
799
|
|
1,624
|
1,874
|
Amortization of
intangibles
|
211
|
212
|
212
|
212
|
215
|
|
635
|
648
|
Other
expenses
|
2,294
|
2,353
|
2,431
|
3,158
|
2,596
|
|
7,078
|
6,839
|
Total noninterest
expense
|
34,390
|
33,016
|
33,564
|
33,359
|
33,067
|
|
100,970
|
95,363
|
Income before income
taxes
|
14,087
|
14,109
|
16,112
|
20,971
|
23,978
|
|
44,308
|
70,199
|
Income tax
expense
|
2,926
|
2,853
|
3,300
|
4,398
|
5,310
|
|
9,079
|
15,091
|
Net income
|
$11,161
|
$11,256
|
$12,812
|
$16,573
|
$18,668
|
|
$35,229
|
$55,108
|
|
|
|
|
|
|
|
|
|
Net income available to
common shareholders
|
$11,140
|
$11,237
|
$12,783
|
$16,535
|
$18,615
|
|
$35,160
|
$54,944
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
17,019
|
17,011
|
17,074
|
17,180
|
17,174
|
|
17,034
|
17,269
|
Diluted
|
17,041
|
17,030
|
17,170
|
17,319
|
17,298
|
|
17,063
|
17,389
|
Earnings per common
share:
|
|
|
|
|
|
|
|
|
Basic
|
$0.65
|
$0.66
|
$0.75
|
$0.96
|
$1.08
|
|
$2.06
|
$3.18
|
Diluted
|
$0.65
|
$0.66
|
$0.74
|
$0.95
|
$1.08
|
|
$2.06
|
$3.16
|
|
|
|
|
|
|
|
|
|
Cash dividends declared
per share
|
$0.56
|
$0.56
|
$0.56
|
$0.56
|
$0.54
|
|
$1.68
|
$1.62
|
Washington Trust
Bancorp, Inc. and Subsidiaries
|
SELECTED FINANCIAL
HIGHLIGHTS
|
(Unaudited; Dollars and
shares in thousands, except per share amounts)
|
|
|
|
Sep 30,
2023
|
Jun 30,
2023
|
Mar 31,
2023
|
Dec 31,
2022
|
Sep 30,
2022
|
Share and Equity
Related Data:
|
|
|
|
|
|
Book value per
share
|
$25.35
|
$26.98
|
$27.37
|
$26.40
|
$25.17
|
Tangible book value per
share - Non-GAAP (1)
|
$21.36
|
$22.98
|
$23.36
|
$22.42
|
$21.17
|
Market value per
share
|
$26.33
|
$26.81
|
$34.66
|
$47.18
|
$46.48
|
Shares issued at end of
period
|
17,363
|
17,363
|
17,363
|
17,363
|
17,363
|
Shares outstanding at
end of period
|
17,019
|
17,019
|
16,986
|
17,183
|
17,171
|
|
|
|
|
|
|
Capital Ratios
(2):
|
|
|
|
|
|
Tier 1 risk-based
capital
|
10.77 %
|
11.09 %
|
11.28 %
|
11.69 %
|
11.97 %
|
Total risk-based
capital
|
11.48 %
|
11.81 %
|
12.01 %
|
12.37 %
|
12.65 %
|
Tier 1 leverage
ratio
|
7.87 %
|
8.05 %
|
8.25 %
|
8.65 %
|
8.99 %
|
Common equity tier
1
|
10.35 %
|
10.66 %
|
10.84 %
|
11.24 %
|
11.50 %
|
|
|
|
|
|
|
Balance Sheet
Ratios:
|
|
|
|
|
|
Equity to
assets
|
6.01 %
|
6.55 %
|
6.78 %
|
6.81 %
|
6.75 %
|
Tangible equity to
tangible assets - Non-GAAP (1)
|
5.11 %
|
5.63 %
|
5.84 %
|
5.84 %
|
5.74 %
|
Loans to
deposits (3)
|
103.1 %
|
100.9 %
|
98.6 %
|
101.2 %
|
95.4 %
|
|
|
|
For the Nine Months
Ended
|
|
For the Three Months
Ended
|
|
|
Sep 30,
2023
|
Jun 30,
2023
|
Mar 31,
2023
|
Dec 31,
2022
|
Sep 30,
2022
|
|
Sep 30,
2023
|
Sep 30,
2022
|
Performance
Ratios (4):
|
|
|
|
|
|
|
|
|
Net interest
margin (5)
|
1.97 %
|
2.03 %
|
2.33 %
|
2.65 %
|
2.82 %
|
|
2.11 %
|
2.71 %
|
Return on average
assets (net income divided by
average assets)
|
0.62 %
|
0.65 %
|
0.77 %
|
1.01 %
|
1.19 %
|
|
0.68 %
|
1.23 %
|
Return on average
tangible assets - Non-GAAP (1)
|
0.63 %
|
0.66 %
|
0.78 %
|
1.03 %
|
1.20 %
|
|
0.69 %
|
1.25 %
|
Return on average
equity (net income available for
common shareholders divided by average equity)
|
9.65 %
|
9.67 %
|
11.27 %
|
14.96 %
|
15.16 %
|
|
10.19 %
|
14.35 %
|
Return on average
tangible equity - Non-GAAP (1)
|
11.33 %
|
11.32 %
|
13.23 %
|
17.74 %
|
17.65 %
|
|
11.95 %
|
16.59 %
|
Efficiency ratio
(6)
|
70.2 %
|
69.0 %
|
66.5 %
|
60.5 %
|
57.2 %
|
|
68.6 %
|
58.3 %
|
(1)
|
See the section labeled
"Supplemental Information - Calculation of Non-GAAP Financial
Measures" at the end of this document.
|
(2)
|
Estimated for September
30, 2023 and actuals for prior periods.
|
(3)
|
Period-end balances of
net loans and mortgage loans held for sale as a percentage of total
deposits.
|
(4)
|
Annualized based on the
actual number of days in the period.
|
(5)
|
Fully taxable
equivalent (FTE) net interest income as a percentage of
average-earnings assets.
|
(6)
|
Total noninterest
expense as percentage of total revenues (net interest income and
noninterest income).
|
Washington Trust
Bancorp, Inc. and Subsidiaries
|
SELECTED FINANCIAL
HIGHLIGHTS
|
(Unaudited; Dollars in
thousands)
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
For the Nine Months
Ended
|
|
Sep 30,
2023
|
Jun 30,
2023
|
Mar 31,
2023
|
Dec 31,
2022
|
Sep 30,
2022
|
|
Sep 30,
2023
|
Sep 30,
2022
|
Wealth Management
Results
|
|
|
|
|
|
|
|
|
Wealth Management
Revenues:
|
|
|
|
|
|
|
|
|
Asset-based
revenues
|
$8,683
|
$8,562
|
$8,429
|
$8,448
|
$9,302
|
|
$25,674
|
$29,154
|
Transaction-based
revenues
|
265
|
486
|
234
|
176
|
223
|
|
985
|
968
|
Total wealth management
revenues
|
$8,948
|
$9,048
|
$8,663
|
$8,624
|
$9,525
|
|
$26,659
|
$30,122
|
|
|
|
|
|
|
|
|
|
Assets Under
Administration (AUA):
|
|
|
|
|
|
|
|
|
Balance at beginning of
period
|
$6,350,260
|
$6,163,422
|
$5,961,990
|
$6,322,757
|
$6,650,097
|
|
$5,961,990
|
$7,784,211
|
Net investment
(depreciation) appreciation & income
|
(154,269)
|
259,788
|
286,262
|
312,407
|
(239,762)
|
|
391,781
|
(1,444,785)
|
Net client asset
outflows
|
(64,596)
|
(72,950)
|
(84,830)
|
(673,174)
|
(87,578)
|
|
(222,376)
|
(16,669)
|
Balance at end of
period
|
$6,131,395
|
$6,350,260
|
$6,163,422
|
$5,961,990
|
$6,322,757
|
|
$6,131,395
|
$6,322,757
|
|
|
|
|
|
|
|
|
|
Percentage of AUA that
are managed assets
|
91 %
|
91 %
|
91 %
|
91 %
|
91 %
|
|
91 %
|
91 %
|
|
|
|
|
|
|
|
|
|
Mortgage Banking
Results
|
|
|
|
|
|
|
|
|
Mortgage Banking
Revenues:
|
|
|
|
|
|
|
|
|
Realized gains on loan
sales, net (1)
|
$1,746
|
$827
|
$576
|
$992
|
$1,718
|
|
$3,149
|
$6,962
|
Changes in fair value,
net (2)
|
(171)
|
382
|
86
|
(426)
|
(226)
|
|
297
|
(798)
|
Loan servicing fee
income, net (3)
|
533
|
544
|
583
|
537
|
555
|
|
1,660
|
1,466
|
Total mortgage banking
revenues
|
$2,108
|
$1,753
|
$1,245
|
$1,103
|
$2,047
|
|
$5,106
|
$7,630
|
|
|
|
|
|
|
|
|
|
Residential Mortgage
Loan Originations:
|
|
|
|
|
|
|
|
|
Originations for
retention in portfolio (4)
|
$161,603
|
$148,694
|
$109,768
|
$228,579
|
$225,132
|
|
$420,065
|
$653,295
|
Originations for sale
to secondary market (5)
|
78,339
|
77,995
|
27,763
|
39,087
|
77,242
|
|
184,097
|
270,320
|
Total mortgage loan
originations
|
$239,942
|
$226,689
|
$137,531
|
$267,666
|
$302,374
|
|
$604,162
|
$923,615
|
|
|
|
|
|
|
|
|
|
Residential Mortgage
Loans Sold:
|
|
|
|
|
|
|
|
|
Sold with servicing
rights retained
|
$34,046
|
$28,727
|
$17,114
|
$27,085
|
$34,659
|
|
$79,887
|
$72,764
|
Sold with servicing
rights released (5)
|
54,575
|
35,836
|
12,214
|
27,470
|
40,665
|
|
102,625
|
212,429
|
Total mortgage loans
sold
|
$88,621
|
$64,563
|
$29,328
|
$54,555
|
$75,324
|
|
$182,512
|
$285,193
|
(1)
|
Includes gains on loan
sales, commission income on loans originated for others, servicing
right gains, and gains (losses) on forward loan
commitments.
|
(2)
|
Represents fair value
changes on mortgage loans held for sale and forward loan
commitments.
|
(3)
|
Represents loan
servicing fee income, net of servicing right amortization and
valuation adjustments.
|
(4)
|
Includes the full
commitment amount of homeowner construction loans.
|
(5)
|
Includes brokered loans
(loans originated for others).
|
Washington Trust
Bancorp, Inc. and Subsidiaries
|
END OF PERIOD LOAN
COMPOSITION
|
(Unaudited; Dollars in
thousands)
|
|
|
|
Sep 30,
2023
|
Jun 30,
2023
|
Mar 31,
2023
|
Dec 31,
2022
|
Sep 30,
2022
|
Loans:
|
|
|
|
|
|
Commercial real
estate (1)
|
$2,063,383
|
$1,940,030
|
$1,909,136
|
$1,829,304
|
$1,762,687
|
Commercial &
industrial
|
611,565
|
611,472
|
609,720
|
656,397
|
652,758
|
Total
commercial
|
2,674,948
|
2,551,502
|
2,518,856
|
2,485,701
|
2,415,445
|
|
|
|
|
|
|
Residential real
estate (2)
|
2,611,100
|
2,510,125
|
2,403,255
|
2,323,002
|
2,144,098
|
|
|
|
|
|
|
Home equity
|
305,683
|
301,116
|
288,878
|
285,715
|
273,742
|
Other
|
19,384
|
18,370
|
16,980
|
15,721
|
15,588
|
Total
consumer
|
325,067
|
319,486
|
305,858
|
301,436
|
289,330
|
Total loans
|
$5,611,115
|
$5,381,113
|
$5,227,969
|
$5,110,139
|
$4,848,873
|
(1)
|
Commercial real estate
loans consist of commercial mortgages and construction and
development loans. Commercial mortgages are loans secured by
income producing property.
|
(2)
|
Residential real estate
loans consist of mortgage and homeowner construction loans secured
by one- to four-family residential properties.
|
|
September 30,
2023
|
|
December 31,
2022
|
|
Balance
|
% of Total
|
|
Balance
|
% of Total
|
Commercial Real
Estate Loans by Property Location:
|
|
|
|
|
|
Connecticut
|
$771,517
|
37 %
|
|
$691,780
|
38 %
|
Massachusetts
|
656,754
|
32
|
|
566,717
|
31
|
Rhode Island
|
431,724
|
21
|
|
387,759
|
21
|
Subtotal
|
1,859,995
|
90
|
|
1,646,256
|
90
|
All other
states
|
203,388
|
10
|
|
183,048
|
10
|
Total commercial real
estate loans
|
$2,063,383
|
100 %
|
|
$1,829,304
|
100 %
|
|
|
|
|
|
|
Residential Real
Estate Loans by Property Location:
|
|
|
|
|
|
Massachusetts
|
$1,940,590
|
75 %
|
|
$1,698,240
|
73 %
|
Rhode Island
|
476,152
|
18
|
|
446,010
|
19
|
Connecticut
|
164,747
|
6
|
|
153,323
|
7
|
Subtotal
|
2,581,489
|
99
|
|
2,297,573
|
99
|
All other
states
|
29,611
|
1
|
|
25,429
|
1
|
Total residential real
estate loans
|
$2,611,100
|
100 %
|
|
$2,323,002
|
100 %
|
Washington Trust
Bancorp, Inc. and Subsidiaries
|
END OF PERIOD LOAN
COMPOSITION
|
(Unaudited; Dollars
in thousands)
|
|
|
|
|
|
|
|
|
|
September 30,
2023
|
|
December 31,
2022
|
|
Count
|
Balance
|
% of Total
|
|
Count
|
Balance
|
% of Total
|
Commercial Real
Estate Portfolio Segmentation:
|
|
|
|
|
|
|
|
Multi-family
dwelling
|
142
|
$552,819
|
27 %
|
|
127
|
$469,233
|
26 %
|
Retail
|
102
|
421,882
|
20
|
|
108
|
421,617
|
23
|
Office
|
53
|
289,011
|
14
|
|
53
|
257,551
|
14
|
Industrial and
warehouse
|
53
|
272,216
|
13
|
|
42
|
192,717
|
11
|
Hospitality
|
44
|
237,578
|
12
|
|
33
|
214,829
|
12
|
Healthcare
|
18
|
168,653
|
8
|
|
17
|
136,225
|
7
|
Commercial mixed
use
|
11
|
47,984
|
2
|
|
21
|
54,976
|
3
|
Other
|
29
|
73,240
|
4
|
|
34
|
82,156
|
4
|
Total commercial real
estate loans
|
452
|
$2,063,383
|
100 %
|
|
435
|
$1,829,304
|
100 %
|
|
|
|
|
|
|
|
|
Commercial &
Industrial Portfolio Segmentation:
|
|
|
|
|
|
|
|
Healthcare and social
assistance
|
63
|
$160,637
|
26 %
|
|
69
|
$193,052
|
29 %
|
Real estate rental and
leasing
|
158
|
80,283
|
13
|
|
168
|
72,429
|
11
|
Transportation and
warehousing
|
16
|
62,831
|
10
|
|
20
|
51,347
|
8
|
Manufacturing
|
55
|
56,015
|
9
|
|
55
|
60,601
|
9
|
Educational
services
|
17
|
44,451
|
7
|
|
19
|
46,708
|
7
|
Retail trade
|
45
|
43,724
|
7
|
|
50
|
56,012
|
9
|
Finance and
insurance
|
45
|
30,094
|
5
|
|
55
|
28,313
|
4
|
Information
|
5
|
23,324
|
4
|
|
5
|
23,948
|
4
|
Arts, entertainment and
recreation
|
20
|
22,528
|
4
|
|
24
|
25,646
|
4
|
Accommodation and food
services
|
41
|
13,981
|
2
|
|
49
|
17,167
|
3
|
Professional,
scientific and technical services
|
34
|
5,165
|
1
|
|
37
|
6,451
|
1
|
Public
administration
|
12
|
3,751
|
1
|
|
11
|
3,789
|
1
|
Other
|
157
|
64,781
|
11
|
|
162
|
70,934
|
10
|
Total commercial &
industrial loans
|
668
|
$611,565
|
100 %
|
|
724
|
$656,397
|
100 %
|
|
|
|
Weighted
Average
|
|
Asset
Quality
|
September 30,
2023
|
Balance
(2)
|
Average
Loan
Size
(3)
|
Loan to
Value
|
Debt
Service
Coverage
|
|
Pass
|
Special
Mention
|
Classified
|
|
Nonaccrual (included in
Classified)
|
Commercial Real
Estate - Office by Class:
|
|
|
|
|
|
|
|
|
|
|
Class A
|
$113,135
|
$10,409
|
58 %
|
1.48x
|
|
$106,761
|
$6,374
|
$—
|
|
$—
|
Class B
|
101,373
|
4,121
|
61 %
|
1.42x
|
|
75,640
|
13,560
|
12,173
|
|
8,646
|
Class C
|
13,222
|
1,653
|
59 %
|
1.40x
|
|
13,222
|
—
|
—
|
|
—
|
Medical
Office
|
40,884
|
6,423
|
61 %
|
1.44x
|
|
40,884
|
—
|
—
|
|
—
|
Lab Space
|
20,397
|
23,455
|
76 %
|
1.34x
|
|
4,057
|
—
|
16,340
|
|
—
|
Total office
(1)
|
$289,011
|
$6,087
|
62 %
|
1.43x
|
|
$240,564
|
$19,934
|
$28,513
|
|
$8,646
|
(1)
|
Approximately 67% of
the total commercial real estate office balance of $289 million is
secured by income producing properties located in suburban
areas. Additionally, approximately 20% of the total
commercial real estate office balance will mature in two
years.
|
(2)
|
Does not include $33.5
million of unfunded commitments.
|
(3)
|
Total commitment
(outstanding loan balance plus unfunded commitments) divided by
number of loans.
|
Washington Trust
Bancorp, Inc. and Subsidiaries
|
END OF PERIOD
DEPOSIT COMPOSITION & CONTINGENT LIQUIDITY
|
(Unaudited; Dollars in
thousands)
|
|
|
|
|
|
|
|
Sep 30,
2023
|
Jun 30,
2023
|
Mar 31,
2023
|
Dec 31,
2022
|
Sep 30,
2022
|
Deposits:
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
$773,261
|
$758,242
|
$829,763
|
$858,953
|
$938,572
|
Interest-bearing demand
deposits (in-market)
|
490,217
|
428,306
|
318,365
|
302,044
|
273,231
|
NOW accounts
|
745,778
|
791,887
|
828,700
|
871,875
|
869,984
|
Money market
accounts
|
1,111,797
|
1,164,557
|
1,214,014
|
1,255,805
|
1,146,826
|
Savings
accounts
|
514,526
|
521,185
|
544,604
|
576,250
|
600,568
|
Time deposits
(in-market)
|
1,111,942
|
1,048,820
|
924,506
|
795,838
|
797,505
|
In-market
deposits
|
4,747,521
|
4,712,997
|
4,659,952
|
4,660,765
|
4,626,686
|
Wholesale brokered
demand deposits
|
—
|
—
|
1,233
|
31,153
|
31,044
|
Wholesale brokered time
deposits
|
668,042
|
601,481
|
607,329
|
327,044
|
412,127
|
Wholesale brokered
deposits
|
668,042
|
601,481
|
608,562
|
358,197
|
443,171
|
Total
deposits
|
$5,415,563
|
$5,314,478
|
$5,268,514
|
$5,018,962
|
$5,069,857
|
|
September 30,
2023
|
|
December 31,
2022
|
|
Balance
|
% of Total
Deposits
|
|
Balance
|
% of Total
Deposits
|
Uninsured
Deposits:
|
|
|
|
|
|
Uninsured
deposits (1)
|
$1,339,261
|
25 %
|
|
$1,514,900
|
30 %
|
Less: affiliate
deposits (2)
|
113,942
|
2
|
|
210,444
|
4
|
Uninsured deposits,
excluding affiliate deposits
|
1,225,319
|
23
|
|
1,304,456
|
26
|
Less:
fully-collateralized preferred deposits (3)
|
246,594
|
5
|
|
329,868
|
7
|
Uninsured deposits,
after exclusions
|
$978,725
|
18 %
|
|
$974,588
|
19 %
|
(1)
|
Determined in
accordance with regulatory reporting requirements, which includes
affiliate deposits and fully-collateralized preferred
deposits.
|
(2)
|
Uninsured deposit
balances of Washington Trust Bancorp, Inc. and its subsidiaries
that are eliminated in consolidation.
|
(3)
|
Uninsured deposits of
states and political subdivisions, which are secured or
collateralized as required by state law.
|
|
Sep 30,
2023
|
Dec 31,
2022
|
Contingent
Liquidity:
|
|
|
Federal Home Loan Bank
of Boston
|
$1,040,792
|
$668,295
|
Federal Reserve Bank of
Boston
|
23,777
|
27,059
|
Noninterest-bearing
cash
|
72,001
|
49,727
|
Unencumbered
securities
|
659,713
|
691,893
|
Total
|
$1,796,283
|
$1,436,974
|
|
|
|
Percentage of total
contingent liquidity to uninsured deposits
|
134.1 %
|
94.9 %
|
Percentage of total
contingent liquidity to uninsured deposits, after
exclusions
|
183.5 %
|
147.4 %
|
Washington Trust
Bancorp, Inc. and Subsidiaries
|
CREDIT & ASSET
QUALITY DATA
|
(Unaudited; Dollars in
thousands)
|
|
|
|
Sep 30,
2023
|
Jun 30,
2023
|
Mar 31,
2023
|
Dec 31,
2022
|
Sep 30,
2022
|
Asset Quality
Ratios:
|
|
|
|
|
|
Nonperforming assets to
total assets
|
0.48 %
|
0.16 %
|
0.21 %
|
0.19 %
|
0.19 %
|
Nonaccrual loans to
total loans
|
0.60 %
|
0.19 %
|
0.27 %
|
0.25 %
|
0.25 %
|
Total past due loans to
total loans
|
0.17 %
|
0.12 %
|
0.15 %
|
0.23 %
|
0.16 %
|
Allowance for credit
losses on loans to nonaccrual loans
|
119.50 %
|
378.04 %
|
277.40 %
|
296.02 %
|
304.10 %
|
Allowance for credit
losses on loans to total loans
|
0.72 %
|
0.73 %
|
0.74 %
|
0.74 %
|
0.76 %
|
|
|
|
|
|
|
Nonperforming
Assets:
|
|
|
|
|
|
Commercial real
estate
|
$22,609
|
$—
|
$1,601
|
$—
|
$—
|
Commercial &
industrial
|
696
|
899
|
920
|
—
|
—
|
Total
commercial
|
23,305
|
899
|
2,521
|
—
|
—
|
Residential real
estate
|
9,446
|
8,542
|
10,470
|
11,894
|
11,700
|
Home equity
|
901
|
966
|
989
|
952
|
422
|
Other
consumer
|
—
|
—
|
—
|
—
|
—
|
Total
consumer
|
901
|
966
|
989
|
952
|
422
|
Total nonaccrual
loans
|
33,652
|
10,407
|
13,980
|
12,846
|
12,122
|
Other real estate
owned
|
683
|
683
|
683
|
—
|
—
|
Total nonperforming
assets
|
$34,335
|
$11,090
|
$14,663
|
$12,846
|
$12,122
|
|
|
|
|
|
|
Past Due Loans (30
days or more past due):
|
|
|
|
|
|
Commercial real
estate
|
$—
|
$—
|
$1,188
|
$1,187
|
$—
|
Commercial &
industrial
|
4
|
223
|
229
|
265
|
4
|
Total
commercial
|
4
|
223
|
1,417
|
1,452
|
4
|
Residential real
estate
|
7,785
|
4,384
|
5,730
|
8,875
|
7,256
|
Home equity
|
1,925
|
1,509
|
833
|
1,235
|
252
|
Other
consumer
|
19
|
214
|
15
|
16
|
17
|
Total
consumer
|
1,944
|
1,723
|
848
|
1,251
|
269
|
Total past due
loans
|
$9,733
|
$6,330
|
$7,995
|
$11,578
|
$7,529
|
|
|
|
|
|
|
Accruing loans 90 days
or more past due
|
$—
|
$—
|
$—
|
$—
|
$—
|
Nonaccrual loans
included in past due loans
|
$5,710
|
$3,672
|
$5,648
|
$7,196
|
$7,059
|
Washington Trust
Bancorp, Inc. and Subsidiaries
|
CREDIT & ASSET
QUALITY DATA
|
(Unaudited; Dollars in
thousands)
|
|
For the Three Months
Ended
|
|
For the Nine Months
Ended
|
|
Sep 30,
2023
|
Jun 30,
2023
|
Mar 31,
2023
|
Dec 31,
2022
|
Sep 30,
2022
|
|
Sep 30,
2023
|
Sep 30,
2022
|
Nonaccrual Loan
Activity:
|
|
|
|
|
|
|
|
|
Balance at beginning of
period
|
$10,407
|
$13,980
|
$12,846
|
$12,122
|
$12,414
|
|
$12,846
|
$14,203
|
Additions to nonaccrual
status
|
25,088
|
600
|
2,570
|
2,485
|
521
|
|
28,258
|
1,106
|
Loans returned to
accruing status
|
(197)
|
(1,329)
|
(110)
|
—
|
(400)
|
|
(1,636)
|
(699)
|
Loans
charged-off
|
(44)
|
(52)
|
(61)
|
(62)
|
(63)
|
|
(157)
|
(122)
|
Loans transferred to
other real estate owned
|
—
|
—
|
(683)
|
—
|
—
|
|
(683)
|
—
|
Payments, payoffs and
other changes
|
(1,602)
|
(2,792)
|
(582)
|
(1,699)
|
(350)
|
|
(4,976)
|
(2,366)
|
Balance at end of
period
|
$33,652
|
$10,407
|
$13,980
|
$12,846
|
$12,122
|
|
$33,652
|
$12,122
|
|
|
|
|
|
|
|
|
|
Allowance for Credit
Losses on Loans:
|
|
|
|
|
|
|
|
|
Balance at beginning of
period
|
$39,343
|
$38,780
|
$38,027
|
$36,863
|
$36,317
|
|
$38,027
|
$39,088
|
Provision for credit
losses on loans (1)
|
900
|
600
|
800
|
900
|
600
|
|
2,300
|
(2,329)
|
Charge-offs
|
(44)
|
(52)
|
(61)
|
(62)
|
(63)
|
|
(157)
|
(122)
|
Recoveries
|
14
|
15
|
14
|
326
|
9
|
|
43
|
226
|
Balance at end of
period
|
$40,213
|
$39,343
|
$38,780
|
$38,027
|
$36,863
|
|
$40,213
|
$36,863
|
|
|
|
|
|
|
|
|
|
Allowance for Credit
Losses on Unfunded Commitments:
|
|
|
|
|
|
|
|
Balance at beginning of
period
|
$2,390
|
$2,290
|
$2,290
|
$2,390
|
$2,190
|
|
$2,290
|
$2,161
|
Provision for credit
losses on unfunded commitments (1)
|
(400)
|
100
|
—
|
(100)
|
200
|
|
(300)
|
229
|
Balance at end of
period (2)
|
$1,990
|
$2,390
|
$2,290
|
$2,290
|
$2,390
|
|
$1,990
|
$2,390
|
(1)
|
Included in provision
for credit losses in the Consolidated Statements of
Income.
|
(2)
|
Included in other
liabilities in the Consolidated Balance Sheets.
|
|
For the Three Months
Ended
|
|
For the Nine Months
Ended
|
|
Sep 30,
2023
|
Jun 30,
2023
|
Mar 31,
2023
|
Dec 31,
2022
|
Sep 30,
2022
|
|
Sep 30,
2023
|
Sep 30,
2022
|
Net Loan Charge-Offs
(Recoveries):
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
$—
|
$—
|
$—
|
($300)
|
$—
|
|
$—
|
($145)
|
Commercial &
industrial
|
4
|
5
|
6
|
10
|
9
|
|
15
|
(3)
|
Total
commercial
|
4
|
5
|
6
|
(290)
|
9
|
|
15
|
(148)
|
Residential real
estate
|
—
|
—
|
—
|
—
|
—
|
|
—
|
(21)
|
Home equity
|
(7)
|
(2)
|
(1)
|
(8)
|
—
|
|
(10)
|
(4)
|
Other
consumer
|
33
|
34
|
42
|
34
|
45
|
|
109
|
69
|
Total
consumer
|
26
|
32
|
41
|
26
|
45
|
|
99
|
65
|
Total
|
$30
|
$37
|
$47
|
($264)
|
$54
|
|
$114
|
($104)
|
|
|
|
|
|
|
|
|
|
Net charge-offs
(recoveries) to average loans - annualized
|
— %
|
— %
|
— %
|
(0.02 %)
|
— %
|
|
— %
|
— %
|
The following tables present average balance and interest rate
information. Tax-exempt income is converted to a fully
taxable equivalent ("FTE") basis using the statutory federal income
tax rate adjusted for applicable state income taxes net of the
related federal tax benefit. Unrealized gains (losses) on
available for sale securities and changes in fair value on mortgage
loans held for sale are excluded from the average balance and yield
calculations. Nonaccrual loans, as well as interest
recognized on these loans, are included in amounts presented for
loans.
Washington Trust
Bancorp, Inc. and Subsidiaries
|
CONSOLIDATED AVERAGE
BALANCE SHEETS (FTE Basis)
|
(Unaudited; Dollars in
thousands)
|
For the Three Months
Ended
|
September 30,
2023
|
|
June 30,
2023
|
|
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
|
$102,608
|
$1,344
|
5.20 %
|
|
$109,204
|
$1,279
|
4.70 %
|
|
($6,596)
|
$65
|
0.50 %
|
Mortgage loans held for
sale
|
23,057
|
332
|
5.71
|
|
18,647
|
241
|
5.18
|
|
4,410
|
91
|
0.53
|
Taxable debt
securities
|
1,181,915
|
7,271
|
2.44
|
|
1,201,973
|
7,403
|
2.47
|
|
(20,058)
|
(132)
|
(0.03)
|
FHLB stock
|
46,889
|
878
|
7.43
|
|
43,815
|
858
|
7.85
|
|
3,074
|
20
|
(0.42)
|
Commercial real
estate
|
2,004,204
|
31,526
|
6.24
|
|
1,928,461
|
28,800
|
5.99
|
|
75,743
|
2,726
|
0.25
|
Commercial &
industrial
|
609,604
|
9,896
|
6.44
|
|
615,101
|
9,458
|
6.17
|
|
(5,497)
|
438
|
0.27
|
Total
commercial
|
2,613,808
|
41,422
|
6.29
|
|
2,543,562
|
38,258
|
6.03
|
|
70,246
|
3,164
|
0.26
|
Residential real
estate
|
2,552,602
|
24,976
|
3.88
|
|
2,448,204
|
23,137
|
3.79
|
|
104,398
|
1,839
|
0.09
|
Home equity
|
303,144
|
4,514
|
5.91
|
|
292,195
|
4,082
|
5.60
|
|
10,949
|
432
|
0.31
|
Other
|
18,813
|
225
|
4.74
|
|
17,808
|
207
|
4.66
|
|
1,005
|
18
|
0.08
|
Total
consumer
|
321,957
|
4,739
|
5.84
|
|
310,003
|
4,289
|
5.55
|
|
11,954
|
450
|
0.29
|
Total loans
|
5,488,367
|
71,137
|
5.14
|
|
5,301,769
|
65,684
|
4.97
|
|
186,598
|
5,453
|
0.17
|
Total interest-earning
assets
|
6,842,836
|
80,962
|
4.69
|
|
6,675,408
|
75,465
|
4.53
|
|
167,428
|
5,497
|
0.16
|
Noninterest-earning
assets
|
272,321
|
|
|
|
263,830
|
|
|
|
8,491
|
|
|
Total assets
|
$7,115,157
|
|
|
|
$6,939,238
|
|
|
|
$175,919
|
|
|
Liabilities and
Shareholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits (in-market)
|
$461,760
|
$5,060
|
4.35 %
|
|
$393,824
|
$4,090
|
4.17 %
|
|
$67,936
|
$970
|
0.18 %
|
NOW accounts
|
742,690
|
419
|
0.22
|
|
781,226
|
400
|
0.21
|
|
(38,536)
|
19
|
0.01
|
Money market
accounts
|
1,173,284
|
9,929
|
3.36
|
|
1,199,761
|
9,302
|
3.11
|
|
(26,477)
|
627
|
0.25
|
Savings
accounts
|
516,342
|
429
|
0.33
|
|
522,300
|
321
|
0.25
|
|
(5,958)
|
108
|
0.08
|
Time deposits
(in-market)
|
1,080,395
|
9,880
|
3.63
|
|
1,000,284
|
7,960
|
3.19
|
|
80,111
|
1,920
|
0.44
|
Interest-bearing
in-market deposits
|
3,974,471
|
25,717
|
2.57
|
|
3,897,395
|
22,073
|
2.27
|
|
77,076
|
3,644
|
0.30
|
Wholesale brokered
demand deposits
|
—
|
—
|
—
|
|
28
|
—
|
—
|
|
(28)
|
—
|
—
|
Wholesale brokered time
deposits
|
659,624
|
8,352
|
5.02
|
|
650,381
|
7,631
|
4.71
|
|
9,243
|
721
|
0.31
|
Wholesale brokered
deposits
|
659,624
|
8,352
|
5.02
|
|
650,409
|
7,631
|
4.71
|
|
9,215
|
721
|
0.31
|
Total interest-bearing
deposits
|
4,634,095
|
34,069
|
2.92
|
|
4,547,804
|
29,704
|
2.62
|
|
86,291
|
4,365
|
0.30
|
FHLB
advances
|
1,053,370
|
12,497
|
4.71
|
|
979,835
|
11,652
|
4.77
|
|
73,535
|
845
|
(0.06)
|
Junior subordinated
debentures
|
22,681
|
404
|
7.07
|
|
22,681
|
374
|
6.61
|
|
—
|
30
|
0.46
|
Total interest-bearing
liabilities
|
5,710,146
|
46,970
|
3.26
|
|
5,550,320
|
41,730
|
3.02
|
|
159,826
|
5,240
|
0.24
|
Noninterest-bearing
demand deposits
|
773,424
|
|
|
|
770,075
|
|
|
|
3,349
|
|
|
Other
liabilities
|
173,572
|
|
|
|
152,616
|
|
|
|
20,956
|
|
|
Shareholders'
equity
|
458,015
|
|
|
|
466,227
|
|
|
|
(8,212)
|
|
|
Total liabilities and
shareholders' equity
|
$7,115,157
|
|
|
|
$6,939,238
|
|
|
|
$175,919
|
|
|
Net interest income
(FTE)
|
|
$33,992
|
|
|
|
$33,735
|
|
|
|
$257
|
|
Interest rate
spread
|
|
|
1.43 %
|
|
|
|
1.51 %
|
|
|
|
(0.08 %)
|
Net interest
margin
|
|
|
1.97 %
|
|
|
|
2.03 %
|
|
|
|
(0.06 %)
|
Interest income amounts presented in the preceding table include
the following adjustments for taxable equivalency:
For the Three Months
Ended
|
Sep 30,
2023
|
Jun 30,
2023
|
Change
|
Commercial
loans
|
$241
|
$235
|
$6
|
Total
|
$241
|
$235
|
$6
|
|
|
|
|
|
|
|
|
|
|
Washington Trust
Bancorp, Inc. and Subsidiaries
|
CONSOLIDATED AVERAGE
BALANCE SHEETS (FTE Basis)
|
(Unaudited; Dollars in
thousands)
|
For the Nine Months
Ended
|
September 30,
2023
|
September 30,
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
|
$105,025
|
$3,693
|
4.70 %
|
$128,606
|
$769
|
0.80 %
|
($23,581)
|
$2,924
|
3.90 %
|
Mortgage loans for
sale
|
18,315
|
725
|
5.29
|
29,985
|
851
|
3.79
|
(11,670)
|
(126)
|
1.50
|
Taxable debt
securities
|
1,192,536
|
21,868
|
2.45
|
1,106,632
|
15,209
|
1.84
|
85,904
|
6,659
|
0.61
|
FHLB stock
|
45,605
|
2,333
|
6.84
|
15,745
|
218
|
1.85
|
29,860
|
2,115
|
4.99
|
Commercial real
estate
|
1,931,196
|
85,626
|
5.93
|
1,648,061
|
43,360
|
3.52
|
283,135
|
42,266
|
2.41
|
Commercial &
industrial
|
618,415
|
28,423
|
6.14
|
628,574
|
19,456
|
4.14
|
(10,159)
|
8,967
|
2.00
|
Total
commercial
|
2,549,611
|
114,049
|
5.98
|
2,276,635
|
62,816
|
3.69
|
272,976
|
51,233
|
2.29
|
Residential real
estate
|
2,452,088
|
69,777
|
3.80
|
1,875,175
|
46,376
|
3.31
|
576,913
|
23,401
|
0.49
|
Home equity
|
293,957
|
12,355
|
5.62
|
257,814
|
6,753
|
3.50
|
36,143
|
5,602
|
2.12
|
Other
|
17,685
|
616
|
4.66
|
15,995
|
550
|
4.60
|
1,690
|
66
|
0.06
|
Total
consumer
|
311,642
|
12,971
|
5.56
|
273,809
|
7,303
|
3.57
|
37,833
|
5,668
|
1.99
|
Total loans
|
5,313,341
|
196,797
|
4.95
|
4,425,619
|
116,495
|
3.52
|
887,722
|
80,302
|
1.43
|
Total interest-earning
assets
|
6,674,822
|
225,416
|
4.52
|
5,706,587
|
133,542
|
3.13
|
968,235
|
91,874
|
1.39
|
Noninterest-earning
assets
|
259,334
|
|
|
268,744
|
|
|
(9,410)
|
|
|
Total assets
|
$6,934,156
|
|
|
$5,975,331
|
|
|
$958,825
|
|
|
Liabilities and
Shareholders' Equity:
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits (in-market)
|
$385,180
|
$11,788
|
4.09 %
|
$255,014
|
$1,114
|
0.58 %
|
$130,166
|
$10,674
|
3.51 %
|
NOW accounts
|
781,546
|
1,177
|
0.20
|
867,464
|
492
|
0.08
|
(85,918)
|
685
|
0.12
|
Money market
accounts
|
1,208,436
|
26,807
|
2.97
|
1,193,599
|
3,984
|
0.45
|
14,837
|
22,823
|
2.52
|
Savings
accounts
|
534,784
|
1,065
|
0.27
|
570,129
|
246
|
0.06
|
(35,345)
|
819
|
0.21
|
Time deposits
(in-market)
|
971,333
|
22,417
|
3.09
|
800,037
|
5,997
|
1.00
|
171,296
|
16,420
|
2.09
|
Interest-bearing
in-market deposits
|
3,881,279
|
63,254
|
2.18
|
3,686,243
|
11,833
|
0.43
|
195,036
|
51,421
|
1.75
|
Wholesale brokered
demand deposits
|
5,368
|
177
|
4.41
|
17,197
|
212
|
1.65
|
(11,829)
|
(35)
|
2.76
|
Wholesale brokered time
deposits
|
579,871
|
19,931
|
4.60
|
396,465
|
1,677
|
0.57
|
183,406
|
18,254
|
4.03
|
Wholesale brokered
deposits
|
585,239
|
20,108
|
4.59
|
413,662
|
1,889
|
0.61
|
171,577
|
18,219
|
3.98
|
Total interest-bearing
deposits
|
4,466,518
|
83,362
|
2.50
|
4,099,905
|
13,722
|
0.45
|
366,613
|
69,640
|
2.05
|
FHLB
advances
|
1,025,788
|
35,775
|
4.66
|
285,590
|
3,891
|
1.82
|
740,198
|
31,884
|
2.84
|
Junior subordinated
debentures
|
22,681
|
1,132
|
6.67
|
22,681
|
443
|
2.61
|
—
|
689
|
4.06
|
Total interest-bearing
liabilities
|
5,514,987
|
120,269
|
2.92
|
4,408,176
|
18,056
|
0.55
|
1,106,811
|
102,213
|
2.37
|
Noninterest-bearing
demand deposits
|
792,706
|
|
|
925,433
|
|
|
(132,727)
|
|
|
Other
liabilities
|
165,021
|
|
|
129,967
|
|
|
35,054
|
|
|
Shareholders'
equity
|
461,442
|
|
|
511,755
|
|
|
(50,313)
|
|
|
Total liabilities and
shareholders' equity
|
$6,934,156
|
|
|
$5,975,331
|
|
|
$958,825
|
|
|
Net interest income
(FTE)
|
|
$105,147
|
|
|
$115,486
|
|
|
($10,339)
|
|
Interest rate
spread
|
|
|
1.60 %
|
|
|
2.58 %
|
|
|
(0.98 %)
|
Net interest
margin
|
|
|
2.11 %
|
|
|
2.71 %
|
|
|
(0.60 %)
|
Interest income amounts presented in the preceding table include
the following adjustments for taxable equivalency:
|
|
|
|
For the Nine Months
Ended
|
Sep 30,
2023
|
Sep 30,
2022
|
Change
|
Commercial
loans
|
$703
|
$838
|
($135)
|
Total
|
$703
|
$838
|
($135)
|
Washington Trust
Bancorp, Inc. and Subsidiaries
|
SUPPLEMENTAL
INFORMATION - Calculation of Non-GAAP Financial
Measures
|
(Unaudited; Dollars in
thousands, except per share amounts)
|
|
|
|
Sep 30,
2023
|
Jun 30,
2023
|
Mar 31,
2023
|
Dec 31,
2022
|
Sep 30,
2022
|
Tangible Book Value
per Share:
|
|
|
|
|
|
Total shareholders'
equity, as reported
|
$431,404
|
$459,161
|
$464,983
|
$453,669
|
$432,274
|
Less:
|
|
|
|
|
|
Goodwill
|
63,909
|
63,909
|
63,909
|
63,909
|
63,909
|
Identifiable intangible
assets, net
|
3,919
|
4,130
|
4,342
|
4,554
|
4,766
|
Total tangible
shareholders' equity
|
$363,576
|
$391,122
|
$396,732
|
$385,206
|
$363,599
|
|
|
|
|
|
|
Shares outstanding, as
reported
|
17,019
|
17,019
|
16,986
|
17,183
|
17,171
|
|
|
|
|
|
|
Book value per share -
GAAP
|
$25.35
|
$26.98
|
$27.37
|
$26.40
|
$25.17
|
Tangible book value per
share - Non-GAAP
|
$21.36
|
$22.98
|
$23.36
|
$22.42
|
$21.18
|
|
|
|
|
|
|
Tangible Equity to
Tangible Assets:
|
|
|
|
|
|
Total tangible
shareholders' equity
|
$363,576
|
$391,122
|
$396,732
|
$385,206
|
$363,599
|
|
|
|
|
|
|
Total assets, as
reported
|
$7,183,475
|
$7,011,760
|
$6,859,182
|
$6,660,051
|
$6,408,051
|
Less:
|
|
|
|
|
|
Goodwill
|
63,909
|
63,909
|
63,909
|
63,909
|
63,909
|
Identifiable intangible
assets, net
|
3,919
|
4,130
|
4,342
|
4,554
|
4,766
|
Total tangible
assets
|
$7,115,647
|
$6,943,721
|
$6,790,931
|
$6,591,588
|
$6,339,376
|
|
|
|
|
|
|
Equity to assets -
GAAP
|
6.01 %
|
6.55 %
|
6.78 %
|
6.81 %
|
6.75 %
|
Tangible equity to
tangible assets - Non-GAAP
|
5.11 %
|
5.63 %
|
5.84 %
|
5.84 %
|
5.74 %
|
|
For the Three Months
Ended
|
|
For the Nine Months
Ended
|
|
Sep 30,
2023
|
Jun 30,
2023
|
Mar 31,
2023
|
Dec 31,
2022
|
Sep 30,
2022
|
|
Sep 30,
2023
|
Sep 30,
2022
|
Return on Average
Tangible Assets:
|
|
|
|
|
|
|
|
|
Net income, as
reported
|
$11,161
|
$11,256
|
$12,812
|
$16,573
|
$18,668
|
|
$35,229
|
$55,108
|
|
|
|
|
|
|
|
|
|
Total average assets,
as reported
|
$7,115,157
|
$6,939,238
|
$6,743,996
|
$6,480,872
|
$6,216,129
|
|
$6,934,156
|
$5,975,331
|
Less average balances
of:
|
|
|
|
|
|
|
|
|
Goodwill
|
63,909
|
63,909
|
63,909
|
63,909
|
63,909
|
|
63,909
|
63,909
|
Identifiable intangible
assets, net
|
4,021
|
4,233
|
4,445
|
4,657
|
4,871
|
|
4,232
|
5,085
|
Total average tangible
assets
|
$7,047,227
|
$6,871,096
|
$6,675,642
|
$6,412,306
|
$6,147,349
|
|
$6,866,015
|
$5,906,337
|
|
|
|
|
|
|
|
|
|
Return on average
assets - GAAP
|
0.62 %
|
0.65 %
|
0.77 %
|
1.01 %
|
1.19 %
|
|
0.68 %
|
1.23 %
|
Return on average
tangible assets - Non-GAAP
|
0.63 %
|
0.66 %
|
0.78 %
|
1.03 %
|
1.20 %
|
|
0.69 %
|
1.25 %
|
|
|
|
|
|
|
|
|
|
Return on Average
Tangible Equity:
|
|
|
|
|
|
|
|
|
Net income available to
common shareholders, as reported
|
$11,140
|
$11,237
|
$12,783
|
$16,535
|
$18,615
|
|
$35,160
|
$54,944
|
|
|
|
|
|
|
|
|
|
Total average equity,
as reported
|
$458,015
|
$466,227
|
$460,106
|
$438,347
|
$487,230
|
|
$461,442
|
$511,755
|
Less average balances
of:
|
|
|
|
|
|
|
|
|
Goodwill
|
63,909
|
63,909
|
63,909
|
63,909
|
63,909
|
|
63,909
|
63,909
|
Identifiable intangible
assets, net
|
4,021
|
4,233
|
4,445
|
4,657
|
4,871
|
|
4,232
|
5,085
|
Total average tangible
equity
|
$390,085
|
$398,085
|
$391,752
|
$369,781
|
$418,450
|
|
$393,301
|
$442,761
|
|
|
|
|
|
|
|
|
|
Return on average
equity - GAAP
|
9.65 %
|
9.67 %
|
11.27 %
|
14.96 %
|
15.16 %
|
|
10.19 %
|
14.35 %
|
Return on average
tangible equity - Non-GAAP
|
11.33 %
|
11.32 %
|
13.23 %
|
17.74 %
|
17.65 %
|
|
11.95 %
|
16.59 %
|
Category: Earnings
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SOURCE Washington Trust Bancorp, Inc.