Washington Trust Reports Fourth Quarter and Full-Year 2023 Earnings
WESTERLY, R.I., Jan. 24, 2024 /PRNewswire/ -- Washington Trust Bancorp, Inc. (Nasdaq: WASH), parent company of The Washington Trust Company, today announced fourth quarter 2023 net income of $12.9 million, or $0.76 per diluted share, compared to net income of $11.2 million, or $0.65 per diluted share, for the third quarter of 2023. Net income for the year ended December 31, 2023 totaled of $48.2 million, or $2.82 per diluted share, compared to $71.7 million, or $4.11 per diluted share, reported for the prior year.
In October 2023, the Commonwealth of Massachusetts enacted into law a tax bill changing how corporations calculate their Massachusetts taxable income effective on January 1, 2025. As required, the Corporation revalued its deferred tax assets and liabilities and in the fourth quarter of 2023 increased its net deferred tax assets by $3.3 million with a corresponding decrease to income tax expense. This increased fourth quarter and full-year 2023 earnings per diluted share by $0.19.
"Washington Trust's year-end results reflect the Corporation's continued perseverance in facing economic headwinds and addressing numerous challenges posed by a difficult operating environment," stated Edward O. Handy III, Washington Trust Chairman and Chief Executive Officer. "While we remain cautious about economic growth in 2024, we believe our diversified business model, disciplined credit culture, and dedicated team will guide us going forward."
Selected financial highlights for the fourth quarter and full-year 2023 include:
- Returns on average equity and average assets for the fourth quarter were 11.77% and 0.71%, respectively, compared to 9.65% and 0.62%, respectively, for the preceding quarter. Full-year returns on average equity and average assets for 2023 were 10.57% and 0.69%, respectively, compared to 14.49% and 1.17%, respectively, for the prior year.
- The net interest margin was 1.88% in the fourth quarter, compared to 1.97% in the preceding quarter. Full-year net interest margin for 2023 was 2.05%, down 64 basis points from the 2.69% reported in the prior year.
- In the fourth quarter, a provision for credit losses of $1.2 million was recognized, up by $700 thousand from the provision recognized in the preceding quarter. The provision for credit losses in 2023 totaled $3.2 million, compared to a negative provision of $1.3 million recognized in the prior year.
- Total loans amounted to $5.6 billion, up by 1% from the end of the preceding quarter.
- In-market deposits (total deposits less wholesale brokered deposits) amounted to $4.7 billion, down by 1% from September 30, 2023.
Net Interest Income
Net interest income was $32.7 million for the fourth quarter of 2023, down by $1.1 million, or 3%, from the third quarter of 2023. The net interest margin was 1.88% for the fourth quarter, a decrease of 9 basis points from the preceding quarter. The declines in net interest income and net interest margin reflect the impact of rapid interest rate increases. Linked quarter changes included:
- Average interest-earning assets increased by $103 million, due to an increase of $139 million in average loans, partially offset by declines in investment securities. The yield on interest-earning assets for the fourth quarter was 4.81%, up by 12 basis points from the preceding quarter.
- Average interest-bearing liabilities increased by $126 million, with increases in average wholesale funding balances of $105 million and average in-market deposits of $21 million. The cost of interest-bearing liabilities for the fourth quarter of 2023 was 3.49%, up by 23 basis points from the preceding quarter.
Noninterest Income
Noninterest income totaled $13.3 million for the fourth quarter of 2023, down by $1.9 million, or 13%, from the third quarter of 2023. Linked quarter changes included:
- Wealth management revenues amounted to $8.9 million in the fourth quarter of 2023, down by $67 thousand, or 1%, on a linked quarter basis. This correlated with a decrease in the average balance of wealth management assets under administration ("AUA"), which was down by approximately $58 million, or 1%, from the preceding quarter.
The end of period AUA balance at December 31, 2023 amounted to $6.6 billion, up by $457 million, or 7%, from September 30, 2023. This increase reflected net investment appreciation of $503 million, partially offset by net client asset outflows of $46 million. - Mortgage banking revenues totaled $1.6 million for the fourth quarter of 2023, down by $554 thousand, or 26%, from the preceding quarter, with lower 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 decreased by $613 thousand, or 35%, from the preceding quarter, due to a lower volume of loans sold and a lower sales yield. Loans sold amounted to $67.5 million in the fourth quarter of 2023, down by $21.2 million, or 24%, from the preceding quarter.
- Loan related derivative income from interest rate swap contracts with commercial borrowers in the fourth quarter of 2023 totaled $112 thousand, down by $970 thousand, or 90%, from the preceding quarter, reflecting a decline in volume.
Noninterest Expense
Noninterest expense totaled $32.6 million for the fourth quarter of 2023, down by $1.8 million, or 5%, from the third quarter of 2023. Linked quarter changes included:
- Salaries and employee benefits expense amounted to $18.5 million, down by $3.2 million, or 15%, from the preceding quarter reflecting adjustments to performance-based compensation accruals.
- Other noninterest expenses totaled $3.6 million, up by $1.3 million, or 56%, from the preceding quarter, largely due to a $1.0 million contribution made by Washington Trust to its charitable foundation.
Income Tax
In the fourth quarter of 2023, a $774 thousand income tax benefit was recognized, reflecting an effective tax rate of negative 6.4%. As previously mentioned, income tax expense was reduced by a net $3.3 million adjustment largely associated with the revaluation of the Corporation's net deferred tax assets due to the enactment of a tax bill into law by the Commonwealth of Massachusetts. The revaluation of our net deferred tax assets is subject to further guidance and interpretation of the law that may be issued. Excluding this adjustment, the effective tax rate for the fourth quarter of 2023 would have been 20.4%, compared to 20.8% for the preceding quarter. Based on current federal and applicable state income tax statutes, the Corporation currently expects its full-year 2024 effective tax rate to be approximately 21.2%.
Investment Securities
The securities portfolio totaled $1.0 billion at December 31, 2023, up by $41 million, or 4%, from September 30, 2023, reflecting an increase of $59 million in the fair value of available for sale debt securities due to changes in market interest rates, partially offset by routine pay-downs and maturities. The securities portfolio represented 14% of total assets at December 31, 2023, compared to 13% of total assets at September 30, 2023.
Loans
Total loans amounted to $5.6 billion at December 31, 2023, up by $37 million, or 1%, from the end of the preceding quarter and up by $538 million, or 11%, from the balance at December 31, 2022. These changes included:
- Commercial loans increased by $36 million, or 1%, from September 30, 2023, reflecting originations and advances of $99 million, partially offset by principal payments of $63 million. Commercial loans increased by $226 million, or 9%, from December 31, 2022, reflecting originations and advances of $472 million, partially offset by principal payments of $246 million.
- Residential real estate loans decreased by $7 million, or 0.3%, from September 30, 2023 and increased by $281 million, or 12%, from December 31, 2022. In the fourth quarter of 2023, residential real estate loans originated for portfolio amounted to $40 million, down by $122 million, or 75%, from the preceding quarter. Full-year 2023 residential real estate loans originated for portfolio amounted to $460 million, down by $422 million, or 48%, from 2022.
- The consumer loan portfolio increased by $7 million, or 2%, from September 30, 2023, and up by $30 million, or 10%, from December 31, 2022, largely reflecting growth in home equity lines and loans.
Deposits and Borrowings
Total deposits amounted to $5.3 billion at December 31, 2023, down by $67 million, or 1%, from the end of the preceding quarter and up by $329 million, or 7%, from a year ago. Uninsured deposits, after exclusions (as detailed in the financial tables below) amounted to $964 million, or 18% of total deposits, at December 31, 2023.
In-market deposits, which exclude wholesale brokered deposits, amounted to $4.7 billion at December 31, 2023, down by $53 million, or 1%, from September 30, 2023 and up by $33 million, or 1%, from a year ago. As of December 31, 2023, in-market deposits were approximately 60% retail and 40% commercial. The average size of our in-market deposit accounts was approximately $36 thousand at December 31, 2023.
Wholesale brokered deposits amounted to $654 million and were down by $14 million, or 2%, from September 30, 2023 and up by $296 million, or 83%, from a year ago.
FHLB advances totaled $1.2 billion at December 31, 2023, up by $70 million, or 6%, from September 30, 2023 and up by $210 million, or 21%, from a year ago. As of December 31, 2023, contingent liquidity amounted to $1.9 billion and consisted of noninterest-bearing cash, unencumbered securities and unused collateralized borrowing capacity.
Asset Quality
Nonaccrual loans were $44.6 million, or 0.79% of total loans, at December 31, 2023, compared to $33.7 million, or 0.60% of total loans, at September 30, 2023. The increase in nonaccrual loans was largely due to one commercial real estate loan that was placed on nonaccrual status in the quarter. The composition of nonaccrual loans at December 31, 2023 was 75% commercial and 25% residential and consumer.
Past due loans were $11.3 million, or 0.20% of total loans, at December 31, 2023, compared to $9.7 million, or 0.17% of total loans, at September 30, 2023. The composition of past due loans at December 31, 2023 was essentially 100% residential and consumer.
The allowance for credit losses ("ACL") on loans amounted to $41.1 million, or 0.73% of total loans, at December 31, 2023, compared to $40.2 million, or 0.72% of total loans, at September 30, 2023. The ACL on unfunded commitments, included in other liabilities on the Consolidated Balance Sheets, was $1.9 million at December 31, 2023, compared to $2.0 million at September 30, 2023.
The provision for credit losses totaled $1.2 million in the fourth quarter of 2023, up by $700 thousand from the preceding quarter. The provision for credit losses in the fourth quarter of 2023 was composed of a provision for credit losses on loans of $1.3 million and a negative provision (or a benefit) for credit losses on unfunded commitments of $50 thousand.
In the fourth quarter of 2023, net charge-offs of $406 thousand were recognized, compared to $30 thousand in the preceding quarter. Full-year net charge-offs totaled $520 thousand in 2023, compared to net recoveries of $368 thousand in the prior year.
Capital and Dividends
Total shareholders' equity was $472.7 million at December 31, 2023, up by $41.3 million, or 10%, from September 30, 2023. This included an increase of $37.6 million in the accumulated other comprehensive income ("AOCI") component of shareholders' equity and net income of $12.9 million, partially offset by $9.6 million in dividend declarations. The increase in AOCI included an increase in the fair value of available for sale securities due to changes in market interest rates, partially offset by a decrease of $5.0 million associated with the annual remeasurement of pension liabilities.
The Board of Directors declared a quarterly dividend of 56 cents per share for the quarter ended December 31, 2023. The dividend was paid on January 12, 2024 to shareholders of record on January 2, 2024. Full-year dividends declared totaled $2.24 per share in 2023, an increase of 6 cents per share, or 3%, from 2022.
Capital levels at December 31, 2023 exceeded the regulatory minimum levels to be considered well capitalized, with a total risk-based capital ratio of 11.58% at December 31, 2023, compared to 11.48% at September 30, 2023. Book value per share was $27.75 at December 31, 2023, compared to $25.35 at September 30, 2023.
Conference Call
Washington Trust will host a conference call to discuss its fourth quarter results, business highlights and outlook on Thursday, January 25, 2024 at 8:30 a.m. (Eastern Time). Individuals may dial in to the call at 1-833-470-1428 and enter Access Code 359112. 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 384692. The audio replay will be available through February 8, 2024. 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 March 31, 2024.
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) | |||||
Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | |
Assets: | |||||
Cash and due from banks | $86,824 | $109,432 | $124,877 | $134,989 | $115,492 |
Short-term investments | 3,360 | 3,577 | 3,439 | 3,291 | 2,930 |
Mortgage loans held for sale, at fair value | 20,077 | 10,550 | 20,872 | 7,445 | 8,987 |
Available for sale debt securities, at fair value | 1,000,380 | 958,990 | 1,022,458 | 1,054,747 | 993,928 |
Federal Home Loan Bank stock, at cost | 51,893 | 52,668 | 45,868 | 42,501 | 43,463 |
Loans: | |||||
Total loans | 5,647,706 | 5,611,115 | 5,381,113 | 5,227,969 | 5,110,139 |
Less: allowance for credit losses on loans | 41,057 | 40,213 | 39,343 | 38,780 | 38,027 |
Net loans | 5,606,649 | 5,570,902 | 5,341,770 | 5,189,189 | 5,072,112 |
Premises and equipment, net | 32,291 | 31,976 | 32,591 | 31,719 | 31,550 |
Operating lease right-of-use assets | 29,364 | 27,882 | 28,633 | 26,170 | 27,156 |
Investment in bank-owned life insurance | 103,736 | 103,003 | 102,293 | 101,782 | 102,182 |
Goodwill | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 |
Identifiable intangible assets, net | 3,711 | 3,919 | 4,130 | 4,342 | 4,554 |
Other assets | 200,653 | 246,667 | 220,920 | 199,098 | 193,788 |
Total assets | $7,202,847 | $7,183,475 | $7,011,760 | $6,859,182 | $6,660,051 |
Liabilities: | |||||
Deposits: | |||||
Noninterest-bearing deposits | $693,746 | $773,261 | $758,242 | $829,763 | $858,953 |
Interest-bearing deposits | 4,654,414 | 4,642,302 | 4,556,236 | 4,438,751 | 4,160,009 |
Total deposits | 5,348,160 | 5,415,563 | 5,314,478 | 5,268,514 | 5,018,962 |
Federal Home Loan Bank advances | 1,190,000 | 1,120,000 | 1,040,000 | 925,000 | 980,000 |
Junior subordinated debentures | 22,681 | 22,681 | 22,681 | 22,681 | 22,681 |
Operating lease liabilities | 32,027 | 30,554 | 31,302 | 28,622 | 29,558 |
Other liabilities | 137,293 | 163,273 | 144,138 | 149,382 | 155,181 |
Total liabilities | 6,730,161 | 6,752,071 | 6,552,599 | 6,394,199 | 6,206,382 |
Shareholders' Equity: | |||||
Common stock | 1,085 | 1,085 | 1,085 | 1,085 | 1,085 |
Paid-in capital | 126,150 | 126,310 | 125,685 | 127,734 | 127,056 |
Retained earnings | 501,917 | 498,521 | 496,996 | 495,231 | 492,043 |
Accumulated other comprehensive loss | (141,153) | (178,734) | (148,827) | (141,760) | (157,800) |
Treasury stock, at cost | (15,313) | (15,778) | (15,778) | (17,307) | (8,715) |
Total shareholders' equity | 472,686 | 431,404 | 459,161 | 464,983 | 453,669 |
Total liabilities and shareholders' equity | $7,202,847 | $7,183,475 | $7,011,760 | $6,859,182 | $6,660,051 |
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 Twelve Months | |||||||
Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Dec 31, | Dec 31, | ||
Interest income: | ||||||||
Interest and fees on loans | $74,236 | $70,896 | $65,449 | $59,749 | $53,644 | $270,330 | $169,301 | |
Interest on mortgage loans held for sale | 255 | 332 | 241 | 152 | 314 | 980 | 1,165 | |
Taxable interest on debt securities | 7,191 | 7,271 | 7,403 | 7,194 | 6,618 | 29,059 | 21,827 | |
Dividends on Federal Home Loan Bank stock | 982 | 878 | 858 | 597 | 330 | 3,315 | 548 | |
Other interest income | 1,282 | 1,344 | 1,279 | 1,070 | 855 | 4,975 | 1,624 | |
Total interest and dividend income | 83,946 | 80,721 | 75,230 | 68,762 | 61,761 | 308,659 | 194,465 | |
Interest expense: | ||||||||
Deposits | 37,067 | 34,069 | 29,704 | 19,589 | 12,301 | 120,429 | 26,023 | |
Federal Home Loan Bank advances | 13,814 | 12,497 | 11,652 | 11,626 | 7,822 | 49,589 | 11,713 | |
Junior subordinated debentures | 411 | 404 | 374 | 354 | 296 | 1,543 | 739 | |
Total interest expense | 51,292 | 46,970 | 41,730 | 31,569 | 20,419 | 171,561 | 38,475 | |
Net interest income | 32,654 | 33,751 | 33,500 | 37,193 | 41,342 | 137,098 | 155,990 | |
Provision for credit losses | 1,200 | 500 | 700 | 800 | 800 | 3,200 | (1,300) | |
Net interest income after provision for credit losses | 31,454 | 33,251 | 32,800 | 36,393 | 40,542 | 133,898 | 157,290 | |
Noninterest income: | ||||||||
Wealth management revenues | 8,881 | 8,948 | 9,048 | 8,663 | 8,624 | 35,540 | 38,746 | |
Mortgage banking revenues | 1,554 | 2,108 | 1,753 | 1,245 | 1,103 | 6,660 | 8,733 | |
Card interchange fees | 1,254 | 1,267 | 1,268 | 1,132 | 1,242 | 4,921 | 4,996 | |
Service charges on deposit accounts | 688 | 674 | 667 | 777 | 942 | 2,806 | 3,192 | |
Loan related derivative income | 112 | 1,082 | 247 | (51) | 745 | 1,390 | 2,756 | |
Income from bank-owned life insurance | 734 | 710 | 879 | 1,165 | 691 | 3,488 | 2,591 | |
Other income | 83 | 437 | 463 | 352 | 441 | 1,335 | 1,588 | |
Total noninterest income | 13,306 | 15,226 | 14,325 | 13,283 | 13,788 | 56,140 | 62,602 | |
Noninterest expense: | ||||||||
Salaries and employee benefits | 18,464 | 21,622 | 20,588 | 21,784 | 20,812 | 82,458 | 83,804 | |
Outsourced services | 3,667 | 3,737 | 3,621 | 3,496 | 3,568 | 14,521 | 13,737 | |
Net occupancy | 2,396 | 2,387 | 2,416 | 2,437 | 2,418 | 9,636 | 9,126 | |
Equipment | 1,133 | 1,107 | 1,050 | 1,028 | 1,002 | 4,318 | 3,797 | |
Legal, audit and professional fees | 959 | 1,058 | 978 | 896 | 987 | 3,891 | 3,127 | |
FDIC deposit insurance costs | 1,239 | 1,185 | 1,371 | 872 | 489 | 4,667 | 1,687 | |
Advertising and promotion | 938 | 789 | 427 | 408 | 713 | 2,562 | 2,587 | |
Amortization of intangibles | 208 | 211 | 212 | 212 | 212 | 843 | 860 | |
Other expenses | 3,583 | 2,294 | 2,353 | 2,431 | 3,158 | 10,661 | 9,997 | |
Total noninterest expense | 32,587 | 34,390 | 33,016 | 33,564 | 33,359 | 133,557 | 128,722 | |
Income before income taxes | 12,173 | 14,087 | 14,109 | 16,112 | 20,971 | 56,481 | 91,170 | |
Income tax (benefit) expense | (774) | 2,926 | 2,853 | 3,300 | 4,398 | 8,305 | 19,489 | |
Net income | $12,947 | $11,161 | $11,256 | $12,812 | $16,573 | $48,176 | $71,681 | |
Net income available to common shareholders | $12,931 | $11,140 | $11,237 | $12,783 | $16,535 | $48,091 | $71,479 | |
Weighted average common shares outstanding: | ||||||||
Basic | 17,029 | 17,019 | 17,011 | 17,074 | 17,180 | 17,033 | 17,246 | |
Diluted | 17,070 | 17,041 | 17,030 | 17,170 | 17,319 | 17,062 | 17,381 | |
Earnings per common share: | ||||||||
Basic | $0.76 | $0.65 | $0.66 | $0.75 | $0.96 | $2.82 | $4.14 | |
Diluted | $0.76 | $0.65 | $0.66 | $0.74 | $0.95 | $2.82 | $4.11 | |
Cash dividends declared per share | $0.56 | $0.56 | $0.56 | $0.56 | $0.56 | $2.24 | $2.18 | |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||
SELECTED FINANCIAL HIGHLIGHTS | |||||
(Unaudited; Dollars and shares in thousands, except per share amounts) | |||||
Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | |
Share and Equity Related Data: | |||||
Book value per share | $27.75 | $25.35 | $26.98 | $27.37 | $26.40 |
Tangible book value per share - Non-GAAP (1) | $23.78 | $21.36 | $22.98 | $23.36 | $22.42 |
Market value per share | $32.38 | $26.33 | $26.81 | $34.66 | $47.18 |
Shares issued at end of period | 17,363 | 17,363 | 17,363 | 17,363 | 17,363 |
Shares outstanding at end of period | 17,031 | 17,019 | 17,019 | 16,986 | 17,183 |
Capital Ratios (2): | |||||
Tier 1 risk-based capital | 10.86 % | 10.77 % | 11.09 % | 11.28 % | 11.69 % |
Total risk-based capital | 11.58 % | 11.48 % | 11.81 % | 12.01 % | 12.37 % |
Tier 1 leverage ratio | 7.80 % | 7.87 % | 8.05 % | 8.25 % | 8.65 % |
Common equity tier 1 | 10.44 % | 10.35 % | 10.66 % | 10.84 % | 11.24 % |
Balance Sheet Ratios: | |||||
Equity to assets | 6.56 % | 6.01 % | 6.55 % | 6.78 % | 6.81 % |
Tangible equity to tangible assets - Non-GAAP (1) | 5.68 % | 5.11 % | 5.63 % | 5.84 % | 5.84 % |
Loans to deposits (3) | 105.2 % | 103.1 % | 100.9 % | 98.6 % | 101.2 % |
For the Twelve Months | ||||||||
For the Three Months Ended | ||||||||
Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Dec 31, | Dec 31, | ||
Performance Ratios (4): | ||||||||
Net interest margin (5) | 1.88 % | 1.97 % | 2.03 % | 2.33 % | 2.65 % | 2.05 % | 2.69 % | |
Return on average assets (net income divided by | 0.71 % | 0.62 % | 0.65 % | 0.77 % | 1.01 % | 0.69 % | 1.17 % | |
Return on average tangible assets - Non-GAAP (1) | 0.72 % | 0.63 % | 0.66 % | 0.78 % | 1.03 % | 0.70 % | 1.19 % | |
Return on average equity (net income available for | 11.77 % | 9.65 % | 9.67 % | 11.27 % | 14.96 % | 10.57 % | 14.49 % | |
Return on average tangible equity - Non-GAAP (1) | 13.93 % | 11.33 % | 11.32 % | 13.23 % | 17.74 % | 12.43 % | 16.84 % | |
Efficiency ratio (6) | 70.9 % | 70.2 % | 69.0 % | 66.5 % | 60.5 % | 69.1 % | 58.9 % | |
(1) | See the section labeled "Supplemental Information - Calculation of Non-GAAP Financial Measures" at the end of this document. |
(2) | Estimated for December 31, 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 Twelve Months | |||||||
Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Dec 31, | Dec 31, | ||
Wealth Management Results | ||||||||
Wealth Management Revenues: | ||||||||
Asset-based revenues | $8,634 | $8,683 | $8,562 | $8,429 | $8,448 | $34,308 | $37,602 | |
Transaction-based revenues | 247 | 265 | 486 | 234 | 176 | 1,232 | 1,144 | |
Total wealth management revenues | $8,881 | $8,948 | $9,048 | $8,663 | $8,624 | $35,540 | $38,746 | |
Assets Under Administration (AUA): | ||||||||
Balance at beginning of period | $6,131,395 | $6,350,260 | $6,163,422 | $5,961,990 | $6,322,757 | $5,961,990 | $7,784,211 | |
Net investment appreciation (depreciation) & | 503,209 | (154,269) | 259,788 | 286,262 | 312,407 | 894,990 | (1,132,378) | |
Net client asset outflows | (46,198) | (64,596) | (72,950) | (84,830) | (673,174) | (268,574) | (689,843) | |
Balance at end of period | $6,588,406 | $6,131,395 | $6,350,260 | $6,163,422 | $5,961,990 | $6,588,406 | $5,961,990 | |
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) | $1,133 | $1,746 | $827 | $576 | $992 | $4,282 | $7,954 | |
Changes in fair value, net (2) | (65) | (171) | 382 | 86 | (426) | 232 | (1,224) | |
Loan servicing fee income, net (3) | 486 | 533 | 544 | 583 | 537 | 2,146 | 2,003 | |
Total mortgage banking revenues | $1,554 | $2,108 | $1,753 | $1,245 | $1,103 | $6,660 | $8,733 | |
Residential Mortgage Loan Originations: | ||||||||
Originations for retention in portfolio (4) | $39,827 | $161,603 | $148,694 | $109,768 | $228,579 | $459,892 | $881,874 | |
Originations for sale to secondary market (5) | 76,495 | 78,339 | 77,995 | 27,763 | 39,087 | 260,592 | 309,407 | |
Total mortgage loan originations | $116,322 | $239,942 | $226,689 | $137,531 | $267,666 | $720,484 | $1,191,281 | |
Residential Mortgage Loans Sold: | ||||||||
Sold with servicing rights retained | $28,290 | $34,046 | $28,727 | $17,114 | $27,085 | $108,177 | $99,849 | |
Sold with servicing rights released (5) | 39,170 | 54,575 | 35,836 | 12,214 | 27,470 | 141,795 | 239,899 | |
Total mortgage loans sold | $67,460 | $88,621 | $64,563 | $29,328 | $54,555 | $249,972 | $339,748 | |
(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) | |||||
Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | |
Loans: | |||||
Commercial real estate (1) | $2,106,359 | $2,063,383 | $1,940,030 | $1,909,136 | $1,829,304 |
Commercial & industrial | 605,072 | 611,565 | 611,472 | 609,720 | 656,397 |
Total commercial | 2,711,431 | 2,674,948 | 2,551,502 | 2,518,856 | 2,485,701 |
Residential real estate (2) | 2,604,478 | 2,611,100 | 2,510,125 | 2,403,255 | 2,323,002 |
Home equity | 312,594 | 305,683 | 301,116 | 288,878 | 285,715 |
Other | 19,203 | 19,384 | 18,370 | 16,980 | 15,721 |
Total consumer | 331,797 | 325,067 | 319,486 | 305,858 | 301,436 |
Total loans | $5,647,706 | $5,611,115 | $5,381,113 | $5,227,969 | $5,110,139 |
(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. |
December 31, 2023 | December 31, 2022 | ||||
Balance | % of Total | Balance | % of Total | ||
Commercial Real Estate Loans by Property Location: | |||||
Connecticut | $815,975 | 39 % | $691,780 | 38 % | |
Massachusetts | 645,736 | 31 | 566,717 | 31 | |
Rhode Island | 430,899 | 20 | 387,759 | 21 | |
Subtotal | 1,892,610 | 90 | 1,646,256 | 90 | |
All other states | 213,749 | 10 | 183,048 | 10 | |
Total commercial real estate loans | $2,106,359 | 100 % | $1,829,304 | 100 % | |
Residential Real Estate Loans by Property Location: | |||||
Massachusetts | $1,928,206 | 74 % | $1,698,240 | 73 % | |
Rhode Island | 481,289 | 19 | 446,010 | 19 | |
Connecticut | 165,933 | 6 | 153,323 | 7 | |
Subtotal | 2,575,428 | 99 | 2,297,573 | 99 | |
All other states | 29,050 | 1 | 25,429 | 1 | |
Total residential real estate loans | $2,604,478 | 100 % | $2,323,002 | 100 % | |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||
END OF PERIOD LOAN COMPOSITION | |||||
(Unaudited; Dollars in thousands) | |||||
December 31, 2023 | December 31, 2022 | ||||
Balance | % of Total | Balance | % of Total | ||
Commercial Real Estate Portfolio Segmentation: | |||||
Multi-family dwelling | $546,694 | 26 % | $469,233 | 26 % | |
Retail | 434,913 | 21 | 421,617 | 23 | |
Industrial and warehouse | 307,987 | 15 | 192,717 | 11 | |
Office | 284,199 | 13 | 257,551 | 14 | |
Hospitality | 235,015 | 11 | 214,829 | 12 | |
Healthcare | 175,490 | 8 | 136,225 | 7 | |
Commercial mixed use | 49,079 | 2 | 54,976 | 3 | |
Other | 72,982 | 4 | 82,156 | 4 | |
Total commercial real estate loans | $2,106,359 | 100 % | $1,829,304 | 100 % | |
Commercial & Industrial Portfolio Segmentation: | |||||
Healthcare and social assistance | $166,490 | 28 % | $193,052 | 29 % | |
Real estate rental and leasing | 70,540 | 12 | 72,429 | 11 | |
Transportation and warehousing | 63,789 | 11 | 51,347 | 8 | |
Manufacturing | 54,905 | 9 | 60,601 | 9 | |
Retail trade | 43,746 | 7 | 56,012 | 9 | |
Educational services | 41,968 | 7 | 46,708 | 7 | |
Finance and insurance | 33,617 | 6 | 28,313 | 4 | |
Information | 22,674 | 4 | 23,948 | 4 | |
Arts, entertainment and recreation | 22,249 | 4 | 25,646 | 4 | |
Accommodation and food services | 13,502 | 2 | 17,167 | 3 | |
Professional, scientific and technical services | 7,998 | 1 | 6,451 | 1 | |
Public administration | 3,019 | — | 3,789 | 1 | |
Other | 60,575 | 9 | 70,934 | 10 | |
Total commercial & industrial loans | $605,072 | 100 % | $656,397 | 100 % | |
Weighted Average | Asset Quality | |||||||||
December 31, 2023 | Balance | Average Loan Size (4) | Loan to | Debt Service | Pass | Special | Classified | Nonaccrual | ||
Commercial Real Estate - Office by Class: | ||||||||||
Class A | $113,129 | $10,381 | 58 % | 1.59x | $106,776 | $6,353 | $— | $— | ||
Class B | 94,702 | 4,376 | 68 % | 1.50x | 72,154 | — | 22,548 | 19,047 | ||
Class C | 13,116 | 1,639 | 59 % | 1.38x | 13,116 | — | — | — | ||
Medical Office | 40,760 | 6,405 | 61 % | 1.40x | 40,760 | — | — | — | ||
Lab Space | 22,492 | 23,461 | 77 % | 1.34x | 4,062 | — | 18,430 | — | ||
Total office (1) | $284,199 | $6,307 | 64 % | 1.49x | $236,868 | $6,353 | $40,978 | $19,047 | ||
(1) | Approximately 66% of the total commercial real estate office balance of $284 million is secured by income producing properties located in suburban areas. Additionally, approximately 33% of the total commercial real estate office balance is expected to mature in two years. |
(2) | The balance of commercial real estate office consists of 50 loans. |
(3) | Does not include $31.1 million of unfunded commitments. |
(4) | 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) | |||||
Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | |
Deposits: | |||||
Noninterest-bearing demand deposits | $693,746 | $773,261 | $758,242 | $829,763 | $858,953 |
Interest-bearing demand deposits (in-market) | 504,959 | 490,217 | 428,306 | 318,365 | 302,044 |
NOW accounts | 767,036 | 745,778 | 791,887 | 828,700 | 871,875 |
Money market accounts | 1,096,959 | 1,111,797 | 1,164,557 | 1,214,014 | 1,255,805 |
Savings accounts | 497,223 | 514,526 | 521,185 | 544,604 | 576,250 |
Time deposits (in-market) | 1,134,187 | 1,111,942 | 1,048,820 | 924,506 | 795,838 |
In-market deposits | 4,694,110 | 4,747,521 | 4,712,997 | 4,659,952 | 4,660,765 |
Wholesale brokered demand deposits | — | — | — | 1,233 | 31,153 |
Wholesale brokered time deposits | 654,050 | 668,042 | 601,481 | 607,329 | 327,044 |
Wholesale brokered deposits | 654,050 | 668,042 | 601,481 | 608,562 | 358,197 |
Total deposits | $5,348,160 | $5,415,563 | $5,314,478 | $5,268,514 | $5,018,962 |
December 31, 2023 | December 31, 2022 | ||||
Balance | % of Total | Balance | % of Total | ||
Uninsured Deposits: | |||||
Uninsured deposits (1) | $1,260,672 | 24 % | $1,514,900 | 30 % | |
Less: affiliate deposits (2) | 92,645 | 2 | 210,444 | 4 | |
Uninsured deposits, excluding affiliate deposits | 1,168,027 | 22 | 1,304,456 | 26 | |
Less: fully-collateralized preferred deposits (3) | 204,327 | 4 | 329,868 | 7 | |
Uninsured deposits, after exclusions | $963,700 | 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. |
Dec 31, | Dec 31, | |
Contingent Liquidity: | ||
Federal Home Loan Bank of Boston | $1,086,607 | $668,295 |
Federal Reserve Bank of Boston | 65,759 | 27,059 |
Noninterest-bearing cash | 54,970 | 49,727 |
Unencumbered securities | 680,857 | 691,893 |
Total | $1,888,193 | $1,436,974 |
Percentage of total contingent liquidity to uninsured deposits | 149.8 % | 94.9 % |
Percentage of total contingent liquidity to uninsured deposits, after exclusions | 195.9 % | 147.4 % |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||
CREDIT & ASSET QUALITY DATA | |||||
(Unaudited; Dollars in thousands) | |||||
Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | |
Asset Quality Ratios: | |||||
Nonperforming assets to total assets | 0.63 % | 0.48 % | 0.16 % | 0.21 % | 0.19 % |
Nonaccrual loans to total loans | 0.79 % | 0.60 % | 0.19 % | 0.27 % | 0.25 % |
Total past due loans to total loans | 0.20 % | 0.17 % | 0.12 % | 0.15 % | 0.23 % |
Allowance for credit losses on loans to nonaccrual loans | 92.02 % | 119.50 % | 378.04 % | 277.40 % | 296.02 % |
Allowance for credit losses on loans to total loans | 0.73 % | 0.72 % | 0.73 % | 0.74 % | 0.74 % |
Nonperforming Assets: | |||||
Commercial real estate | $32,827 | $22,609 | $— | $1,601 | $— |
Commercial & industrial | 682 | 696 | 899 | 920 | — |
Total commercial | 33,509 | 23,305 | 899 | 2,521 | — |
Residential real estate | 9,626 | 9,446 | 8,542 | 10,470 | 11,894 |
Home equity | 1,483 | 901 | 966 | 989 | 952 |
Other consumer | — | — | — | — | — |
Total consumer | 1,483 | 901 | 966 | 989 | 952 |
Total nonaccrual loans | 44,618 | 33,652 | 10,407 | 13,980 | 12,846 |
Other real estate owned | 683 | 683 | 683 | 683 | — |
Total nonperforming assets | $45,301 | $34,335 | $11,090 | $14,663 | $12,846 |
Past Due Loans (30 days or more past due): | |||||
Commercial real estate | $— | $— | $— | $1,188 | $1,187 |
Commercial & industrial | 10 | 4 | 223 | 229 | 265 |
Total commercial | 10 | 4 | 223 | 1,417 | 1,452 |
Residential real estate | 8,116 | 7,785 | 4,384 | 5,730 | 8,875 |
Home equity | 3,196 | 1,925 | 1,509 | 833 | 1,235 |
Other consumer | 23 | 19 | 214 | 15 | 16 |
Total consumer | 3,219 | 1,944 | 1,723 | 848 | 1,251 |
Total past due loans | $11,345 | $9,733 | $6,330 | $7,995 | $11,578 |
Accruing loans 90 days or more past due | $— | $— | $— | $— | $— |
Nonaccrual loans included in past due loans | $6,877 | $5,710 | $3,672 | $5,648 | $7,196 |
Washington Trust Bancorp, Inc. and Subsidiaries | ||||||||
CREDIT & ASSET QUALITY DATA | ||||||||
(Unaudited; Dollars in thousands) | ||||||||
For the Three Months Ended | For the Twelve Months | |||||||
Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Dec 31, | Dec 31, | ||
Nonaccrual Loan Activity: | ||||||||
Balance at beginning of period | $33,652 | $10,407 | $13,980 | $12,846 | $12,122 | $12,846 | $14,203 | |
Additions to nonaccrual status | 12,018 | 25,088 | 600 | 2,570 | 2,485 | 40,276 | 3,591 | |
Loans returned to accruing status | — | (197) | (1,329) | (110) | — | (1,636) | (699) | |
Loans charged-off | (420) | (44) | (52) | (61) | (62) | (577) | (184) | |
Loans transferred to other real estate owned | — | — | — | (683) | — | (683) | — | |
Payments, payoffs and other changes | (632) | (1,602) | (2,792) | (582) | (1,699) | (5,608) | (4,065) | |
Balance at end of period | $44,618 | $33,652 | $10,407 | $13,980 | $12,846 | $44,618 | $12,846 | |
Allowance for Credit Losses on Loans: | ||||||||
Balance at beginning of period | $40,213 | $39,343 | $38,780 | $38,027 | $36,863 | $38,027 | $39,088 | |
Provision for credit losses on loans (1) | 1,250 | 900 | 600 | 800 | 900 | 3,550 | (1,429) | |
Charge-offs | (420) | (44) | (52) | (61) | (62) | (577) | (184) | |
Recoveries | 14 | 14 | 15 | 14 | 326 | 57 | 552 | |
Balance at end of period | $41,057 | $40,213 | $39,343 | $38,780 | $38,027 | $41,057 | $38,027 | |
Allowance for Credit Losses on Unfunded Commitments: | ||||||||
Balance at beginning of period | $1,990 | $2,390 | $2,290 | $2,290 | $2,390 | $2,290 | $2,161 | |
Provision for credit losses on unfunded commitments (1) | (50) | (400) | 100 | — | (100) | (350) | 129 | |
Balance at end of period (2) | $1,940 | $1,990 | $2,390 | $2,290 | $2,290 | $1,940 | $2,290 | |
(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 Twelve Months | |||||||
Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Dec 31, | Dec 31, | ||
Net Loan Charge-Offs (Recoveries): | ||||||||
Commercial real estate | $373 | $— | $— | $— | ($300) | $373 | ($445) | |
Commercial & industrial | 10 | 4 | 5 | 6 | 10 | 25 | 7 | |
Total commercial | 383 | 4 | 5 | 6 | (290) | 398 | (438) | |
Residential real estate | (3) | — | — | — | — | (3) | (21) | |
Home equity | — | (7) | (2) | (1) | (8) | (10) | (12) | |
Other consumer | 26 | 33 | 34 | 42 | 34 | 135 | 103 | |
Total consumer | 26 | 26 | 32 | 41 | 26 | 125 | 91 | |
Total | $406 | $30 | $37 | $47 | ($264) | $520 | ($368) | |
Net charge-offs (recoveries) to average loans - annualized | 0.03 % | — % | — % | — % | (0.02 %) | 0.01 % | (0.01 %) | |
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 | December 31, 2023 | September 30, 2023 | Change | ||||||||
Average | Interest | Yield/ Rate | Average | Interest | Yield/ Rate | Average | Interest | Yield/ Rate | |||
Assets: | |||||||||||
Cash, federal funds sold and short-term | $89,719 | $1,282 | 5.67 % | $102,608 | $1,344 | 5.20 % | ($12,889) | ($62) | 0.47 % | ||
Mortgage loans held for sale | 14,620 | 255 | 6.92 | 23,057 | 332 | 5.71 | (8,437) | (77) | 1.21 | ||
Taxable debt securities | 1,163,042 | 7,191 | 2.45 | 1,181,915 | 7,271 | 2.44 | (18,873) | (80) | 0.01 | ||
FHLB stock | 50,662 | 982 | 7.69 | 46,889 | 878 | 7.43 | 3,773 | 104 | 0.26 | ||
Commercial real estate | 2,087,447 | 33,260 | 6.32 | 2,004,204 | 31,526 | 6.24 | 83,243 | 1,734 | 0.08 | ||
Commercial & industrial | 606,822 | 9,903 | 6.47 | 609,604 | 9,896 | 6.44 | (2,782) | 7 | 0.03 | ||
Total commercial | 2,694,269 | 43,163 | 6.36 | 2,613,808 | 41,422 | 6.29 | 80,461 | 1,741 | 0.07 | ||
Residential real estate | 2,606,432 | 26,303 | 4.00 | 2,552,602 | 24,976 | 3.88 | 53,830 | 1,327 | 0.12 | ||
Home equity | 307,601 | 4,774 | 6.16 | 303,144 | 4,514 | 5.91 | 4,457 | 260 | 0.25 | ||
Other | 19,275 | 238 | 4.90 | 18,813 | 225 | 4.74 | 462 | 13 | 0.16 | ||
Total consumer | 326,876 | 5,012 | 6.08 | 321,957 | 4,739 | 5.84 | 4,919 | 273 | 0.24 | ||
Total loans | 5,627,577 | 74,478 | 5.25 | 5,488,367 | 71,137 | 5.14 | 139,210 | 3,341 | 0.11 | ||
Total interest-earning assets | 6,945,620 | 84,188 | 4.81 | 6,842,836 | 80,962 | 4.69 | 102,784 | 3,226 | 0.12 | ||
Noninterest-earning assets | 245,955 | 272,321 | (26,366) | ||||||||
Total assets | $7,191,575 | $7,115,157 | $76,418 | ||||||||
Liabilities and Shareholders' Equity: | |||||||||||
Interest-bearing demand deposits (in- | $506,365 | $5,733 | 4.49 % | $461,760 | $5,060 | 4.35 % | $44,605 | $673 | 0.14 % | ||
NOW accounts | 721,820 | 417 | 0.23 | 742,690 | 419 | 0.22 | (20,870) | (2) | 0.01 | ||
Money market accounts | 1,139,403 | 10,339 | 3.60 | 1,173,284 | 9,929 | 3.36 | (33,881) | 410 | 0.24 | ||
Savings accounts | 501,027 | 622 | 0.49 | 516,342 | 429 | 0.33 | (15,315) | 193 | 0.16 | ||
Time deposits (in-market) | 1,127,236 | 11,192 | 3.94 | 1,080,395 | 9,880 | 3.63 | 46,841 | 1,312 | 0.31 | ||
Interest-bearing in-market deposits | 3,995,851 | 28,303 | 2.81 | 3,974,471 | 25,717 | 2.57 | 21,380 | 2,586 | 0.24 | ||
Wholesale brokered demand deposits | — | — | — | — | — | — | — | — | — | ||
Wholesale brokered time deposits | 669,342 | 8,764 | 5.19 | 659,624 | 8,352 | 5.02 | 9,718 | 412 | 0.17 | ||
Wholesale brokered deposits | 669,342 | 8,764 | 5.19 | 659,624 | 8,352 | 5.02 | 9,718 | 412 | 0.17 | ||
Total interest-bearing deposits | 4,665,193 | 37,067 | 3.15 | 4,634,095 | 34,069 | 2.92 | 31,098 | 2,998 | 0.23 | ||
FHLB advances | 1,148,533 | 13,814 | 4.77 | 1,053,370 | 12,497 | 4.71 | 95,163 | 1,317 | 0.06 | ||
Junior subordinated debentures | 22,681 | 411 | 7.19 | 22,681 | 404 | 7.07 | — | 7 | 0.12 | ||
Total interest-bearing liabilities | 5,836,407 | 51,292 | 3.49 | 5,710,146 | 46,970 | 3.26 | 126,261 | 4,322 | 0.23 | ||
Noninterest-bearing demand deposits | 734,966 | 773,424 | (38,458) | ||||||||
Other liabilities | 184,143 | 173,572 | 10,571 | ||||||||
Shareholders' equity | 436,059 | 458,015 | (21,956) | ||||||||
Total liabilities and shareholders' equity | $7,191,575 | $7,115,157 | $76,418 | ||||||||
Net interest income (FTE) | $32,896 | $33,992 | ($1,096) | ||||||||
Interest rate spread | 1.32 % | 1.43 % | (0.11 %) | ||||||||
Net interest margin | 1.88 % | 1.97 % | (0.09 %) | ||||||||
Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:
For the Three Months Ended | Dec 31, | Sep 30, | Change | |
Commercial loans | $242 | $241 | $1 | |
Total | $242 | $241 | $1 |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||
CONSOLIDATED AVERAGE BALANCE SHEETS (FTE Basis) | |||||||||
(Unaudited; Dollars in thousands) | |||||||||
For the Twelve Months Ended | December 31, 2023 | December 31, 2022 | Change | ||||||
Average | Interest | Yield/ Rate | Average | Interest | Yield/ Rate | Average | Interest | Yield/ Rate | |
Assets: | |||||||||
Cash, federal funds sold and short-term | $101,166 | $4,975 | 4.92 % | $119,932 | $1,624 | 1.35 % | ($18,766) | $3,351 | 3.57 % |
Mortgage loans for sale | 17,384 | 980 | 5.64 | 29,539 | 1,165 | 3.94 | (12,155) | (185) | 1.70 |
Taxable debt securities | 1,185,102 | 29,059 | 2.45 | 1,121,413 | 21,827 | 1.95 | 63,689 | 7,232 | 0.50 |
FHLB stock | 46,880 | 3,315 | 7.07 | 20,721 | 548 | 2.64 | 26,159 | 2,767 | 4.43 |
Commercial real estate | 1,970,580 | 118,887 | 6.03 | 1,679,300 | 65,660 | 3.91 | 291,280 | 53,227 | 2.12 |
Commercial & industrial | 615,494 | 38,326 | 6.23 | 632,938 | 28,099 | 4.44 | (17,444) | 10,227 | 1.79 |
Total commercial | 2,586,074 | 157,213 | 6.08 | 2,312,238 | 93,759 | 4.05 | 273,836 | 63,454 | 2.03 |
Residential real estate | 2,490,991 | 96,080 | 3.86 | 1,960,629 | 65,866 | 3.36 | 530,362 | 30,214 | 0.50 |
Home equity | 297,396 | 17,129 | 5.76 | 263,578 | 10,139 | 3.85 | 33,818 | 6,990 | 1.91 |
Other | 18,085 | 854 | 4.72 | 15,799 | 724 | 4.58 | 2,286 | 130 | 0.14 |
Total consumer | 315,481 | 17,983 | 5.70 | 279,377 | 10,863 | 3.89 | 36,104 | 7,120 | 1.81 |
Total loans | 5,392,546 | 271,276 | 5.03 | 4,552,244 | 170,488 | 3.75 | 840,302 | 100,788 | 1.28 |
Total interest-earning assets | 6,743,078 | 309,605 | 4.59 | 5,843,849 | 195,652 | 3.35 | 899,229 | 113,953 | 1.24 |
Noninterest-earning assets | 255,962 | 258,906 | (2,944) | ||||||
Total assets | $6,999,040 | $6,102,755 | $896,285 | ||||||
Liabilities and Shareholders' Equity: | |||||||||
Interest-bearing demand deposits (in- | $415,725 | $17,521 | 4.21 % | $263,154 | $2,891 | 1.10 % | $152,571 | $14,630 | 3.11 % |
NOW accounts | 766,492 | 1,594 | 0.21 | 864,084 | 862 | 0.10 | (97,592) | 732 | 0.11 |
Money market accounts | 1,191,036 | 37,145 | 3.12 | 1,198,714 | 8,954 | 0.75 | (7,678) | 28,191 | 2.37 |
Savings accounts | 526,275 | 1,687 | 0.32 | 574,349 | 473 | 0.08 | (48,074) | 1,214 | 0.24 |
Time deposits (in-market) | 1,010,629 | 33,609 | 3.33 | 799,645 | 8,630 | 1.08 | 210,984 | 24,979 | 2.25 |
Interest-bearing in-market deposits | 3,910,157 | 91,556 | 2.34 | 3,699,946 | 21,810 | 0.59 | 210,211 | 69,746 | 1.75 |
Wholesale brokered demand deposits | 4,015 | 178 | 4.43 | 20,696 | 494 | 2.39 | (16,681) | (316) | 2.04 |
Wholesale brokered time deposits | 602,423 | 28,695 | 4.76 | 386,170 | 3,719 | 0.96 | 216,253 | 24,976 | 3.80 |
Wholesale brokered deposits | 606,438 | 28,873 | 4.76 | 406,866 | 4,213 | 1.04 | 199,572 | 24,660 | 3.72 |
Total interest-bearing deposits | 4,516,595 | 120,429 | 2.67 | 4,106,812 | 26,023 | 0.63 | 409,783 | 94,406 | 2.04 |
FHLB advances | 1,056,726 | 49,589 | 4.69 | 414,263 | 11,713 | 2.83 | 642,463 | 37,876 | 1.86 |
Junior subordinated debentures | 22,681 | 1,543 | 6.80 | 22,681 | 739 | 3.26 | — | 804 | 3.54 |
Total interest-bearing liabilities | 5,596,002 | 171,561 | 3.07 | 4,543,756 | 38,475 | 0.85 | 1,052,246 | 133,086 | 2.22 |
Noninterest-bearing demand deposits | 778,152 | 923,423 | (145,271) | ||||||
Other liabilities | 169,842 | 142,324 | 27,518 | ||||||
Shareholders' equity | 455,044 | 493,252 | (38,208) | ||||||
Total liabilities and shareholders' equity | $6,999,040 | $6,102,755 | $896,285 | ||||||
Net interest income (FTE) | $138,044 | $157,177 | ($19,133) | ||||||
Interest rate spread | 1.52 % | 2.50 % | (0.98 %) | ||||||
Net interest margin | 2.05 % | 2.69 % | (0.64 %) | ||||||
Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:
For the Twelve Months Ended | Dec 31, | Dec 31, | Change |
Commercial loans | $946 | $1,187 | ($241) |
Total | $946 | $1,187 | ($241) |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||
SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures | |||||
(Unaudited; Dollars in thousands, except per share amounts) | |||||
Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | |
Tangible Book Value per Share: | |||||
Total shareholders' equity, as reported | $472,686 | $431,404 | $459,161 | $464,983 | $453,669 |
Less: | |||||
Goodwill | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 |
Identifiable intangible assets, net | 3,711 | 3,919 | 4,130 | 4,342 | 4,554 |
Total tangible shareholders' equity | $405,066 | $363,576 | $391,122 | $396,732 | $385,206 |
Shares outstanding, as reported | 17,031 | 17,019 | 17,019 | 16,986 | 17,183 |
Book value per share - GAAP | $27.75 | $25.35 | $26.98 | $27.37 | $26.40 |
Tangible book value per share - Non-GAAP | $23.78 | $21.36 | $22.98 | $23.36 | $22.42 |
Tangible Equity to Tangible Assets: | |||||
Total tangible shareholders' equity | $405,066 | $363,576 | $391,122 | $396,732 | $385,206 |
Total assets, as reported | $7,202,847 | $7,183,475 | $7,011,760 | $6,859,182 | $6,660,051 |
Less: | |||||
Goodwill | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 |
Identifiable intangible assets, net | 3,711 | 3,919 | 4,130 | 4,342 | 4,554 |
Total tangible assets | $7,135,227 | $7,115,647 | $6,943,721 | $6,790,931 | $6,591,588 |
Equity to assets - GAAP | 6.56 % | 6.01 % | 6.55 % | 6.78 % | 6.81 % |
Tangible equity to tangible assets - Non-GAAP | 5.68 % | 5.11 % | 5.63 % | 5.84 % | 5.84 % |
For the Three Months Ended | For the Twelve Months | |||||||
Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Dec 31, | Dec 31, | ||
Return on Average Tangible Assets: | ||||||||
Net income, as reported | $12,947 | $11,161 | $11,256 | $12,812 | $16,573 | $48,176 | $71,681 | |
Total average assets, as reported | $7,191,575 | $7,115,157 | $6,939,238 | $6,743,996 | $6,480,872 | $6,999,040 | $6,102,755 | |
Less average balances of: | ||||||||
Goodwill | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | |
Identifiable intangible assets, net | 3,812 | 4,021 | 4,233 | 4,445 | 4,657 | 4,126 | 4,977 | |
Total average tangible assets | $7,123,854 | $7,047,227 | $6,871,096 | $6,675,642 | $6,412,306 | $6,931,005 | $6,033,869 | |
Return on average assets - GAAP | 0.71 % | 0.62 % | 0.65 % | 0.77 % | 1.01 % | 0.69 % | 1.17 % | |
Return on average tangible assets - Non- | 0.72 % | 0.63 % | 0.66 % | 0.78 % | 1.03 % | 0.70 % | 1.19 % | |
Return on Average Tangible Equity: | ||||||||
Net income available to common | $12,931 | $11,140 | $11,237 | $12,783 | $16,535 | $48,091 | $71,479 | |
Total average equity, as reported | $436,059 | $458,015 | $466,227 | $460,106 | $438,347 | $455,044 | $493,252 | |
Less average balances of: | ||||||||
Goodwill | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 | |
Identifiable intangible assets, net | 3,812 | 4,021 | 4,233 | 4,445 | 4,657 | 4,126 | 4,977 | |
Total average tangible equity | $368,338 | $390,085 | $398,085 | $391,752 | $369,781 | $387,009 | $424,366 | |
Return on average equity - GAAP | 11.77 % | 9.65 % | 9.67 % | 11.27 % | 14.96 % | 10.57 % | 14.49 % | |
Return on average tangible equity - Non- | 13.93 % | 11.33 % | 11.32 % | 13.23 % | 17.74 % | 12.43 % | 16.84 % | |
Category: Earnings
SOURCE Washington Trust Bancorp, Inc.
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