WESTERLY, R.I., July 24,
2023 /PRNewswire/ -- Washington Trust Bancorp, Inc.
(Nasdaq: WASH), parent company of The Washington Trust Company,
today announced second quarter 2023 net income of $11.3 million, or $0.66 per diluted share, compared to net income
of $12.8 million, or $0.74 per diluted share, for the first quarter of
2023.
"Washington Trust's second quarter results reflect the strength
and stability of our diversified business model and disciplined
approach to capital, credit, and liquidity planning," stated
Edward O. Handy III, Washington
Trust Chairman and Chief Executive Officer. "We've had
consistent deposit growth, our asset quality remains strong, and we
surpassed $7 billion in total assets
for the first time. During our 223-year history, Washington
Trust has weathered many storms and we remain committed to helping
our customers through these challenging economic times."
Selected financial highlights for the second quarter
include:
- Returns on average equity and average assets for the second
quarter were 9.67% and 0.65%, respectively, compared to 11.27% and
0.77%, respectively, for the preceding quarter.
- Net interest income totaled $33.5
million in the second quarter, down by $3.7 million, or 10%, from the preceding quarter,
reflecting the challenging interest rate environment.
- Asset and credit quality metrics continue to remain strong. In
the second quarter, a provision for credit losses of $700 thousand was recognized, down by
$100 thousand from the provision
recognized in the preceding quarter.
- Noninterest income totaled $14.3
million in the second quarter, up by $1.0 million, or 8%, from the preceding quarter,
reflecting increases in both wealth management and mortgage banking
revenues.
- Total loans amounted to an all-time high of $5.4 billion, up by $153
million, or 3%, from the end of the preceding quarter. Total
loans were up by $901 million, or
20%, from a year ago.
- In-market deposits (total deposits less wholesale brokered
deposits) amounted to $4.7 billion,
up by $53 million, or 1%, from
March 31, 2023. In-market deposits
were up by $165 million, or 4%, from
a year ago.
Net Interest Income
Net interest income was $33.5
million for the second quarter of 2023, down by $3.7 million, or 10%, from the first quarter of
2023. The net interest margin was 2.03% for the second
quarter, down by 30 basis points from the preceding quarter.
These declines reflected continued increases in funding costs,
which outpaced increases in asset yields. Linked quarter
changes included:
- Average interest-earning assets increased by $173 million, including an increase of
$156 million in average loans. The
yield on interest-earning assets for the second quarter was 4.53%,
up by 23 basis points from the preceding quarter.
- Average interest-bearing liabilities increased by $271 million, reflecting increases in average
wholesale funding balances of $143
million and average in-market deposits of $128 million. The cost of interest-bearing
liabilities for the second quarter of 2023 was 3.02%, up by 60
basis points from the preceding quarter.
Noninterest Income
Noninterest income totaled $14.3
million for the second quarter of 2023, up by $1.0 million, or 8%, from the first quarter
of 2023. Linked quarter changes included:
- Wealth management revenues amounted to $9.0 million in the second quarter of 2023, up by
$385 thousand, or 4%, on a linked
quarter basis. This included an increase in transaction-based
revenues of $252 thousand,
concentrated in tax servicing and estate fee income, as well as an
increase in asset-based revenues of $133
thousand. The change in asset-based revenues reflected an
increase in the average balance of wealth management assets under
administration ("AUA"), which was up by approximately $103 million, or 2%, from the preceding
quarter.
The end of period AUA balance at June 30,
2023 amounted to $6.4 billion,
up by $187 million, or 3%, from
March 31, 2023. This increase
reflected net investment appreciation of $260 million, partially offset by net client
asset outflows of $73 million.
- Mortgage banking revenues totaled $1.8
million for the second quarter of 2023, up by $508 thousand, or 41%, from the first quarter of
2023, reflecting higher realized gains on loan sales, as well as
changes in the fair value of mortgage loans held for sale and
forward loan commitments. Realized gains on sales of loans
increased by $251 thousand, or 44%,
from the preceding quarter, due to a higher volume of loans sold to
the secondary market, which was partially offset by a lower sales
yield. Mortgage loans sold to the secondary market amounted to
$64.6 million in the second quarter
of 2023, up by $35.2 million, or
120%, from the preceding quarter.
- Loan related derivative income in the second quarter of 2023
was up by $298 thousand from the
preceding quarter, largely reflecting an increase in commercial
borrower interest rate derivative transactions.
- Income from bank-owned life insurance totaled $879 thousand in the second quarter of 2023, down
by $286 thousand, or 25%, from the
preceding quarter. In the second quarter, $182 thousand of income associated with life
insurance proceeds was recognized, compared to $476 thousand in the preceding quarter.
Noninterest Expense
Noninterest expense totaled $33.0
million for the second quarter of 2023, down by
$548 thousand, or 2%, from the first quarter of 2023.
Linked quarter changes included:
- Salaries and employee benefits expense, the largest component
of noninterest expense, amounted to $20.6
million, down by $1.2 million,
or 5%, from the preceding quarter, reflecting decreases in
performance-based compensation accruals, partially offset by
volume-related increases in mortgage originator compensation
expense.
- FDIC deposit insurance costs were up by $499 thousand, or 57%, from the first quarter of
2023, largely reflecting growth in assets.
Income Tax
Income tax expense totaled $2.9
million for the second quarter of 2023, down by $447 thousand from the preceding quarter.
The effective tax rate for the second quarter of 2023 was 20.2%,
compared to 20.5% 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 $1.0
billion at June 30, 2023, down
by $32 million, or 3%, from
March 31, 2023, reflecting routine
pay-downs and a decrease of $13
million in the fair value of available for sale debt
securities due to changes in market interest rates. The
securities portfolio represented 15% of total assets at both
June 30, 2023 and March 31, 2023.
Loans
Total loans amounted to $5.4
billion at June 30, 2023, up
by $153 million, or 3%, from the end
of the preceding quarter. Linked quarter changes
included:
- Commercial loans increased by $33
million, or 1%, from March 31,
2023, reflecting originations and advances of approximately
$102 million, partially offset by
principal payments of approximately $69
million.
- Residential real estate loans increased by $107 million, or 4%, from March 31, 2023. In the second quarter of 2023,
residential real estate loans originated for portfolio amounted to
$149 million, up by $39 million, or 35%, from the preceding
quarter.
- The consumer loan portfolio increased by $14 million, or 4%, from March 31, 2023, reflecting growth in home equity
lines and loans.
Deposits and Borrowings
Total deposits, which include wholesale brokered deposits,
amounted to $5.3 billion at
June 30, 2023, up by $46 million, or 1%, from the end of the preceding
quarter. Uninsured deposits, after exclusions (as detailed in
the financial tables below) amounted to $937
million, or 18% of total deposits, at June 30, 2023.
In-market deposits, which exclude wholesale brokered deposits,
amounted to $4.7 billion at
June 30, 2023, up by $53 million, or 1%, from
March 31, 2023. In the second quarter of 2023, in-market
deposits continued to shift from relatively lower cost products to
higher cost products due to higher market interest rates. As
of June 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
June 30, 2023.
Wholesale funding was utilized in the second quarter to fund
balance sheet growth. FHLB advances totaled $1 billion
at June 30, 2023, up by $115 million, or 12%, from
March 31, 2023. Wholesale brokered deposits amounted to
$601 million and were down by $7 million, or 1%, from
March 31, 2023. As of June 30, 2023, Washington
Trust has contingent liquidity of $1.7 billion, consisting of unencumbered
securities and unused collateralized borrowing capacity.
Asset Quality
Nonaccrual loans were $10.4 million, or 0.19% of total loans, at
June 30, 2023, compared to $14.0 million, or 0.27% of total loans, at
March 31, 2023. Past due loans were $6.3 million, or 0.12% of total loans, at
June 30, 2023, compared to $8.0 million, or 0.15% of total loans, at
March 31, 2023.
The allowance for credit losses ("ACL") on loans amounted to
$39.3 million, or 0.73% of total
loans, at June 30, 2023, compared to $38.8 million, or 0.74% of total loans, at
March 31, 2023. The ACL on unfunded commitments,
included in other liabilities on the Consolidated Balance Sheets,
was $2.4 million at
June 30, 2023, compared to $2.3 million at March 31, 2023.
The provision for credit losses totaled $700 thousand in the second quarter of 2023, down
by $100 thousand from the preceding quarter. Actual
losses remain low, as asset and credit quality metrics remain
strong. In the second quarter of 2023, net charge-offs of
$37 thousand were recognized, compared to $47 thousand in
the preceding quarter.
Capital and Dividends
Total shareholders' equity was $459.2 million at June 30, 2023, down
by $5.8 million, or 1%, from
March 31, 2023. This decrease included $9.5 million in dividend declarations. The
accumulated other comprehensive income ("AOCI") component of
shareholders' equity decreased by $7.1 million in the second quarter, largely
reflecting a decrease in the fair value of available for sale debt
securities due to changes in market interest rates.
These decreases were partially offset by net income of $11.3 million in the second quarter.
The Board of Directors declared a quarterly dividend of
56 cents per share for the quarter ended June 30,
2023. The dividend was paid on July 13, 2023 to
shareholders of record on July 3, 2023.
Capital levels at June 30, 2023 exceeded the regulatory
minimum levels to be considered well capitalized, with a total
risk-based capital ratio of 11.81% at June 30, 2023, compared
to 12.01% at March 31, 2023. Book value per share was
$26.98 at June 30, 2023,
compared to $27.37 at March 31,
2023.
Conference Call
Washington Trust will host a conference call to discuss its
second quarter results, business highlights and outlook on Tuesday,
July 25, 2023 at 8:30 a.m.
(Eastern Time). Individuals may dial in to the call at
1-833-470-1428 and enter Access Code 429492. 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
580583. The audio replay will be available through
August 8, 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
September 30, 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)
|
|
|
|
|
|
|
|
Jun 30,
2023
|
Mar 31,
2023
|
Dec 31,
2022
|
Sep 30,
2022
|
Jun 30,
2022
|
Assets:
|
|
|
|
|
|
Cash and due from
banks
|
$124,877
|
$134,989
|
$115,492
|
$130,066
|
$95,544
|
Short-term
investments
|
3,439
|
3,291
|
2,930
|
2,773
|
3,079
|
Mortgage loans held for
sale, at fair value
|
20,872
|
7,445
|
8,987
|
24,054
|
22,656
|
Available for sale debt
securities, at fair value
|
1,022,458
|
1,054,747
|
993,928
|
982,573
|
1,020,469
|
Federal Home Loan Bank
stock, at cost
|
45,868
|
42,501
|
43,463
|
32,940
|
16,300
|
Loans:
|
|
|
|
|
|
Total loans
|
5,381,113
|
5,227,969
|
5,110,139
|
4,848,873
|
4,479,822
|
Less: allowance for
credit losses on loans
|
39,343
|
38,780
|
38,027
|
36,863
|
36,317
|
Net loans
|
5,341,770
|
5,189,189
|
5,072,112
|
4,812,010
|
4,443,505
|
Premises and equipment,
net
|
32,591
|
31,719
|
31,550
|
30,152
|
29,694
|
Operating lease
right-of-use assets
|
28,633
|
26,170
|
27,156
|
27,788
|
28,098
|
Investment in
bank-owned life insurance
|
102,293
|
101,782
|
102,182
|
101,491
|
100,807
|
Goodwill
|
63,909
|
63,909
|
63,909
|
63,909
|
63,909
|
Identifiable intangible
assets, net
|
4,130
|
4,342
|
4,554
|
4,766
|
4,981
|
Other assets
|
220,920
|
199,098
|
193,788
|
195,529
|
153,849
|
Total assets
|
$7,011,760
|
$6,859,182
|
$6,660,051
|
$6,408,051
|
$5,982,891
|
Liabilities:
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
Noninterest-bearing
deposits
|
$758,242
|
$829,763
|
$858,953
|
$938,572
|
$888,981
|
Interest-bearing
deposits
|
4,556,236
|
4,438,751
|
4,160,009
|
4,131,285
|
4,117,648
|
Total
deposits
|
5,314,478
|
5,268,514
|
5,018,962
|
5,069,857
|
5,006,629
|
Federal Home Loan Bank
advances
|
1,040,000
|
925,000
|
980,000
|
700,000
|
328,000
|
Junior subordinated
debentures
|
22,681
|
22,681
|
22,681
|
22,681
|
22,681
|
Operating lease
liabilities
|
31,302
|
28,622
|
29,558
|
30,189
|
30,491
|
Other
liabilities
|
144,138
|
149,382
|
155,181
|
153,050
|
118,456
|
Total
liabilities
|
6,552,599
|
6,394,199
|
6,206,382
|
5,975,777
|
5,506,257
|
Shareholders'
Equity:
|
|
|
|
|
|
Common stock
|
1,085
|
1,085
|
1,085
|
1,085
|
1,085
|
Paid-in
capital
|
125,685
|
127,734
|
127,056
|
127,055
|
126,079
|
Retained
earnings
|
496,996
|
495,231
|
492,043
|
485,163
|
475,889
|
Accumulated other
comprehensive (loss) income
|
(148,827)
|
(141,760)
|
(157,800)
|
(171,755)
|
(118,041)
|
Treasury stock, at
cost
|
(15,778)
|
(17,307)
|
(8,715)
|
(9,274)
|
(8,378)
|
Total shareholders'
equity
|
459,161
|
464,983
|
453,669
|
432,274
|
476,634
|
Total liabilities and
shareholders' equity
|
$7,011,760
|
$6,859,182
|
$6,660,051
|
$6,408,051
|
$5,982,891
|
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 Six Months
Ended
|
|
Jun 30,
2023
|
Mar 31,
2023
|
Dec 31,
2022
|
Sep 30,
2022
|
Jun 30,
2022
|
|
Jun 30,
2023
|
Jun 30,
2022
|
Interest
income:
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
$65,449
|
$59,749
|
$53,644
|
$45,125
|
$36,602
|
|
$125,198
|
$70,532
|
Interest on mortgage
loans held for sale
|
241
|
152
|
314
|
361
|
258
|
|
393
|
490
|
Taxable interest on
debt securities
|
7,403
|
7,194
|
6,618
|
6,061
|
4,918
|
|
14,597
|
9,148
|
Dividends on Federal
Home Loan Bank stock
|
858
|
597
|
330
|
88
|
63
|
|
1,455
|
130
|
Other interest
income
|
1,279
|
1,070
|
855
|
503
|
188
|
|
2,349
|
266
|
Total interest and
dividend income
|
75,230
|
68,762
|
61,761
|
52,138
|
42,029
|
|
143,992
|
80,566
|
Interest
expense:
|
|
|
|
|
|
|
|
|
Deposits
|
29,704
|
19,589
|
12,301
|
6,656
|
3,963
|
|
49,293
|
7,066
|
Federal Home Loan Bank
advances
|
11,652
|
11,626
|
7,822
|
3,234
|
413
|
|
23,278
|
657
|
Junior subordinated
debentures
|
374
|
354
|
296
|
206
|
138
|
|
728
|
237
|
Total interest
expense
|
41,730
|
31,569
|
20,419
|
10,096
|
4,514
|
|
73,299
|
7,960
|
Net interest
income
|
33,500
|
37,193
|
41,342
|
42,042
|
37,515
|
|
70,693
|
72,606
|
Provision for credit
losses
|
700
|
800
|
800
|
800
|
(3,000)
|
|
1,500
|
(2,900)
|
Net interest income
after provision for credit losses
|
32,800
|
36,393
|
40,542
|
41,242
|
40,515
|
|
69,193
|
75,506
|
Noninterest
income:
|
|
|
|
|
|
|
|
|
Wealth management
revenues
|
9,048
|
8,663
|
8,624
|
9,525
|
10,066
|
|
17,711
|
20,597
|
Mortgage banking
revenues
|
1,753
|
1,245
|
1,103
|
2,047
|
2,082
|
|
2,998
|
5,583
|
Card interchange
fees
|
1,268
|
1,132
|
1,242
|
1,287
|
1,303
|
|
2,400
|
2,467
|
Service charges on
deposit accounts
|
667
|
777
|
942
|
819
|
763
|
|
1,444
|
1,431
|
Loan related derivative
income
|
247
|
(51)
|
745
|
1,041
|
669
|
|
196
|
970
|
Income from bank-owned
life insurance
|
879
|
1,165
|
691
|
684
|
615
|
|
2,044
|
1,216
|
Other income
|
463
|
352
|
441
|
400
|
354
|
|
815
|
747
|
Total noninterest
income
|
14,325
|
13,283
|
13,788
|
15,803
|
15,852
|
|
27,608
|
33,011
|
Noninterest
expense:
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
20,588
|
21,784
|
20,812
|
21,609
|
20,381
|
|
42,372
|
41,383
|
Outsourced
services
|
3,621
|
3,496
|
3,568
|
3,552
|
3,375
|
|
7,117
|
6,617
|
Net
occupancy
|
2,416
|
2,437
|
2,418
|
2,234
|
2,174
|
|
4,853
|
4,474
|
Equipment
|
1,050
|
1,028
|
1,002
|
939
|
938
|
|
2,078
|
1,856
|
Legal, audit and
professional fees
|
978
|
896
|
987
|
693
|
677
|
|
1,874
|
1,447
|
FDIC deposit insurance
costs
|
1,371
|
872
|
489
|
430
|
402
|
|
2,243
|
768
|
Advertising and
promotion
|
427
|
408
|
713
|
799
|
724
|
|
835
|
1,075
|
Amortization of
intangibles
|
212
|
212
|
212
|
215
|
216
|
|
424
|
433
|
Other
expenses
|
2,353
|
2,431
|
3,158
|
2,596
|
2,190
|
|
4,784
|
4,243
|
Total noninterest
expense
|
33,016
|
33,564
|
33,359
|
33,067
|
31,077
|
|
66,580
|
62,296
|
Income before income
taxes
|
14,109
|
16,112
|
20,971
|
23,978
|
25,290
|
|
30,221
|
46,221
|
Income tax
expense
|
2,853
|
3,300
|
4,398
|
5,310
|
5,333
|
|
6,153
|
9,781
|
Net income
|
$11,256
|
$12,812
|
$16,573
|
$18,668
|
$19,957
|
|
$24,068
|
$36,440
|
|
|
|
|
|
|
|
|
|
Net income available to
common shareholders
|
$11,237
|
$12,783
|
$16,535
|
$18,615
|
$19,900
|
|
$24,020
|
$36,329
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
17,011
|
17,074
|
17,180
|
17,174
|
17,303
|
|
17,042
|
17,317
|
Diluted
|
17,030
|
17,170
|
17,319
|
17,298
|
17,414
|
|
17,085
|
17,451
|
Earnings per common
share:
|
|
|
|
|
|
|
|
|
Basic
|
$0.66
|
$0.75
|
$0.96
|
$1.08
|
$1.15
|
|
$1.41
|
$2.10
|
Diluted
|
$0.66
|
$0.74
|
$0.95
|
$1.08
|
$1.14
|
|
$1.41
|
$2.08
|
|
|
|
|
|
|
|
|
|
Cash dividends declared
per share
|
$0.56
|
$0.56
|
$0.56
|
$0.54
|
$0.54
|
|
$1.12
|
$1.08
|
Washington Trust
Bancorp, Inc. and Subsidiaries
|
SELECTED FINANCIAL
HIGHLIGHTS
|
(Unaudited; Dollars and
shares in thousands, except per share amounts)
|
|
|
|
Jun 30,
2023
|
Mar 31,
2023
|
Dec 31,
2022
|
Sep 30,
2022
|
Jun 30,
2022
|
Share and Equity
Related Data:
|
|
|
|
|
|
Book value per
share
|
$26.98
|
$27.37
|
$26.40
|
$25.17
|
$27.73
|
Tangible book value per
share - Non-GAAP (1)
|
$22.98
|
$23.36
|
$22.42
|
$21.17
|
$23.72
|
Market value per
share
|
$26.81
|
$34.66
|
$47.18
|
$46.48
|
$48.37
|
Shares issued at end of
period
|
17,363
|
17,363
|
17,363
|
17,363
|
17,363
|
Shares outstanding at
end of period
|
17,019
|
16,986
|
17,183
|
17,171
|
17,190
|
|
|
|
|
|
|
Capital Ratios
(2):
|
|
|
|
|
|
Tier 1 risk-based
capital
|
11.09 %
|
11.28 %
|
11.69 %
|
11.97 %
|
12.78 %
|
Total risk-based
capital
|
11.81 %
|
12.01 %
|
12.37 %
|
12.65 %
|
13.51 %
|
Tier 1 leverage
ratio
|
8.05 %
|
8.25 %
|
8.65 %
|
8.99 %
|
9.42 %
|
Common equity tier
1
|
10.66 %
|
10.84 %
|
11.24 %
|
11.50 %
|
12.28 %
|
|
|
|
|
|
|
Balance Sheet
Ratios:
|
|
|
|
|
|
Equity to
assets
|
6.55 %
|
6.78 %
|
6.81 %
|
6.75 %
|
7.97 %
|
Tangible equity to
tangible assets - Non-GAAP (1)
|
5.63 %
|
5.84 %
|
5.84 %
|
5.74 %
|
6.89 %
|
Loans to
deposits (3)
|
100.9 %
|
98.6 %
|
101.2 %
|
95.4 %
|
89.2 %
|
|
|
|
For the Six Months
Ended
|
|
For the Three Months
Ended
|
|
|
Jun 30,
2023
|
Mar 31,
2023
|
Dec 31,
2022
|
Sep 30,
2022
|
Jun 30,
2022
|
|
Jun 30,
2023
|
Jun 30,
2022
|
Performance
Ratios (4):
|
|
|
|
|
|
|
|
|
Net interest
margin (5)
|
2.03 %
|
2.33 %
|
2.65 %
|
2.82 %
|
2.71 %
|
|
2.18 %
|
2.64 %
|
Return on average
assets (net income divided by
average assets)
|
0.65 %
|
0.77 %
|
1.01 %
|
1.19 %
|
1.37 %
|
|
0.71 %
|
1.26 %
|
Return on average
tangible assets - Non-GAAP (1)
|
0.66 %
|
0.78 %
|
1.03 %
|
1.20 %
|
1.39 %
|
|
0.72 %
|
1.27 %
|
Return on average
equity (net income available for
common shareholders divided by average equity)
|
9.67 %
|
11.27 %
|
14.96 %
|
15.16 %
|
16.11 %
|
|
10.46 %
|
13.98 %
|
Return on average
tangible equity - Non-GAAP (1)
|
11.32 %
|
13.23 %
|
17.74 %
|
17.65 %
|
18.71 %
|
|
12.26 %
|
16.10 %
|
Efficiency ratio
(6)
|
69.0 %
|
66.5 %
|
60.5 %
|
57.2 %
|
58.2 %
|
|
67.7 %
|
59.0 %
|
|
|
(1)
|
See the section labeled
"Supplemental Information - Calculation of Non-GAAP Financial
Measures" at the end of this document.
|
(2)
|
Estimated for June 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 Six Months
Ended
|
|
Jun 30,
2023
|
Mar 31,
2023
|
Dec 31,
2022
|
Sep 30,
2022
|
Jun 30,
2022
|
|
Jun 30,
2023
|
Jun 30,
2022
|
Wealth Management
Results
|
|
|
|
|
|
|
|
|
Wealth Management
Revenues:
|
|
|
|
|
|
|
|
|
Asset-based
revenues
|
$8,562
|
$8,429
|
$8,448
|
$9,302
|
$9,641
|
|
$16,991
|
$19,852
|
Transaction-based
revenues
|
486
|
234
|
176
|
223
|
425
|
|
720
|
745
|
Total wealth management
revenues
|
$9,048
|
$8,663
|
$8,624
|
$9,525
|
$10,066
|
|
$17,711
|
$20,597
|
|
|
|
|
|
|
|
|
|
Assets Under
Administration (AUA):
|
|
|
|
|
|
|
|
|
Balance at beginning of
period
|
$6,163,422
|
$5,961,990
|
$6,322,757
|
$6,650,097
|
$7,492,893
|
|
$5,961,990
|
$7,784,211
|
Net investment
appreciation (depreciation) &
income
|
259,788
|
286,262
|
312,407
|
(239,762)
|
(816,290)
|
|
546,050
|
(1,205,023)
|
Net client asset
(outflows) inflows
|
(72,950)
|
(84,830)
|
(673,174)
|
(87,578)
|
(26,506)
|
|
(157,780)
|
70,909
|
Balance at end of
period
|
$6,350,260
|
$6,163,422
|
$5,961,990
|
$6,322,757
|
$6,650,097
|
|
$6,350,260
|
$6,650,097
|
|
|
|
|
|
|
|
|
|
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)
|
$827
|
$576
|
$992
|
$1,718
|
$1,917
|
|
$1,403
|
$5,244
|
Changes in fair value,
net (2)
|
382
|
86
|
(426)
|
(226)
|
(330)
|
|
468
|
(572)
|
Loan servicing fee
income, net (3)
|
544
|
583
|
537
|
555
|
495
|
|
1,127
|
911
|
Total mortgage banking
revenues
|
$1,753
|
$1,245
|
$1,103
|
$2,047
|
$2,082
|
|
$2,998
|
$5,583
|
|
|
|
|
|
|
|
|
|
Residential Mortgage
Loan Originations:
|
|
|
|
|
|
|
|
|
Originations for
retention in portfolio (4)
|
$148,694
|
$109,768
|
$228,579
|
$225,132
|
$263,762
|
|
$258,462
|
$428,163
|
Originations for sale
to secondary market (5)
|
77,995
|
27,763
|
39,087
|
77,242
|
86,459
|
|
105,758
|
193,078
|
Total mortgage loan
originations
|
$226,689
|
$137,531
|
$267,666
|
$302,374
|
$350,221
|
|
$364,220
|
$621,241
|
|
|
|
|
|
|
|
|
|
Residential Mortgage
Loans Sold:
|
|
|
|
|
|
|
|
|
Sold with servicing
rights retained
|
$28,727
|
$17,114
|
$27,085
|
$34,659
|
$23,478
|
|
$45,841
|
$38,105
|
Sold with servicing
rights released (5)
|
35,836
|
12,214
|
27,470
|
40,665
|
56,263
|
|
48,050
|
171,764
|
Total mortgage loans
sold
|
$64,563
|
$29,328
|
$54,555
|
$75,324
|
$79,741
|
|
$93,891
|
$209,869
|
|
|
(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)
|
|
|
|
Jun 30,
2023
|
Mar 31,
2023
|
Dec 31,
2022
|
Sep 30,
2022
|
Jun 30,
2022
|
Loans:
|
|
|
|
|
|
Commercial real
estate (1)
|
$1,940,030
|
$1,909,136
|
$1,829,304
|
$1,762,687
|
$1,609,618
|
Commercial &
industrial
|
611,472
|
609,720
|
656,397
|
652,758
|
620,270
|
Total
commercial
|
2,551,502
|
2,518,856
|
2,485,701
|
2,415,445
|
2,229,888
|
|
|
|
|
|
|
Residential real
estate (2)
|
2,510,125
|
2,403,255
|
2,323,002
|
2,144,098
|
1,966,341
|
|
|
|
|
|
|
Home equity
|
301,116
|
288,878
|
285,715
|
273,742
|
267,785
|
Other
|
18,370
|
16,980
|
15,721
|
15,588
|
15,808
|
Total
consumer
|
319,486
|
305,858
|
301,436
|
289,330
|
283,593
|
Total loans
|
$5,381,113
|
$5,227,969
|
$5,110,139
|
$4,848,873
|
$4,479,822
|
|
|
(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.
|
|
June 30,
2023
|
|
December 31,
2022
|
|
Balance
|
% of Total
|
|
Balance
|
% of Total
|
Commercial Real
Estate Loans by Property Location:
|
|
|
|
|
|
Connecticut
|
$712,931
|
37 %
|
|
$691,780
|
38 %
|
Massachusetts
|
631,296
|
33
|
|
566,717
|
31
|
Rhode Island
|
391,913
|
19
|
|
387,759
|
21
|
Subtotal
|
1,736,140
|
89
|
|
1,646,256
|
90
|
All other
states
|
203,890
|
11
|
|
183,048
|
10
|
Total commercial real
estate loans
|
$1,940,030
|
100 %
|
|
$1,829,304
|
100 %
|
|
|
|
|
|
|
Residential Real
Estate Loans by Property Location:
|
|
|
|
|
|
Massachusetts
|
$1,851,118
|
73 %
|
|
$1,698,240
|
73 %
|
Rhode Island
|
468,966
|
19
|
|
446,010
|
19
|
Connecticut
|
162,339
|
7
|
|
153,323
|
7
|
Subtotal
|
2,482,423
|
99
|
|
2,297,573
|
99
|
All other
states
|
27,702
|
1
|
|
25,429
|
1
|
Total residential real
estate loans
|
$2,510,125
|
100 %
|
|
$2,323,002
|
100 %
|
Washington Trust
Bancorp, Inc. and Subsidiaries
|
END OF PERIOD LOAN
COMPOSITION
|
(Unaudited; Dollars
in thousands)
|
|
|
|
|
|
|
|
|
|
June 30,
2023
|
|
December 31,
2022
|
|
Count
|
Balance
|
% of Total
|
|
Count
|
Balance
|
% of Total
|
Commercial Real
Estate Portfolio Segmentation:
|
|
|
|
|
|
|
|
Multi-family
dwelling
|
136
|
$514,257
|
27 %
|
|
127
|
$469,233
|
26 %
|
Retail
|
101
|
406,728
|
21
|
|
108
|
421,617
|
23
|
Office
|
52
|
267,215
|
14
|
|
53
|
257,551
|
14
|
Hospitality
|
46
|
230,669
|
12
|
|
33
|
214,829
|
12
|
Industrial and
warehouse
|
48
|
224,998
|
12
|
|
42
|
192,717
|
11
|
Healthcare
|
19
|
172,587
|
9
|
|
17
|
136,225
|
7
|
Commercial mixed
use
|
12
|
45,947
|
2
|
|
21
|
54,976
|
3
|
Other
|
33
|
77,629
|
3
|
|
34
|
82,156
|
4
|
Commercial real estate
loans
|
447
|
$1,940,030
|
100 %
|
|
435
|
$1,829,304
|
100 %
|
|
|
|
|
|
|
|
|
Commercial &
Industrial Portfolio Segmentation:
|
|
|
|
|
|
|
|
Healthcare and social
assistance
|
64
|
$162,582
|
27 %
|
|
69
|
$193,052
|
29 %
|
Owner occupied and
other real estate
|
161
|
80,874
|
13
|
|
168
|
72,429
|
11
|
Transportation and
warehousing
|
18
|
59,727
|
10
|
|
20
|
51,347
|
8
|
Manufacturing
|
55
|
58,074
|
9
|
|
55
|
60,601
|
9
|
Educational
services
|
16
|
43,104
|
7
|
|
19
|
46,708
|
7
|
Retail
|
47
|
40,319
|
7
|
|
50
|
56,012
|
9
|
Finance and
insurance
|
46
|
31,591
|
5
|
|
55
|
28,313
|
4
|
Entertainment and
recreation
|
22
|
24,266
|
4
|
|
24
|
25,646
|
4
|
Information
|
5
|
23,633
|
4
|
|
5
|
23,948
|
4
|
Accommodation and food
services
|
41
|
13,556
|
2
|
|
49
|
17,167
|
3
|
Professional,
scientific and technical
|
35
|
5,238
|
1
|
|
37
|
6,451
|
1
|
Public
administration
|
12
|
3,974
|
1
|
|
11
|
3,789
|
1
|
Other
|
157
|
64,534
|
10
|
|
162
|
70,934
|
10
|
Commercial &
industrial loans
|
679
|
$611,472
|
100 %
|
|
724
|
$656,397
|
100 %
|
Washington Trust
Bancorp, Inc. and Subsidiaries
|
END OF PERIOD
DEPOSIT COMPOSITION & CONTINGENT LIQUIDITY
|
(Unaudited; Dollars in
thousands)
|
|
|
|
|
|
|
|
Jun 30,
2023
|
Mar 31,
2023
|
Dec 31,
2022
|
Sep 30,
2022
|
Jun 30,
2022
|
Deposits:
|
|
|
|
|
|
Noninterest-bearing
demand deposits
|
$758,242
|
$829,763
|
$858,953
|
$938,572
|
$888,981
|
Interest-bearing demand
deposits (in-market)
|
428,306
|
318,365
|
302,044
|
273,231
|
258,451
|
NOW accounts
|
791,887
|
828,700
|
871,875
|
869,984
|
887,678
|
Money market
accounts
|
1,164,557
|
1,214,014
|
1,255,805
|
1,146,826
|
1,139,676
|
Savings
accounts
|
521,185
|
544,604
|
576,250
|
600,568
|
572,251
|
Time deposits
(in-market)
|
1,048,820
|
924,506
|
795,838
|
797,505
|
800,898
|
In-market
deposits
|
4,712,997
|
4,659,952
|
4,660,765
|
4,626,686
|
4,547,935
|
Wholesale brokered
demand deposits
|
—
|
1,233
|
31,153
|
31,044
|
31,003
|
Wholesale brokered time
deposits
|
601,481
|
607,329
|
327,044
|
412,127
|
427,691
|
Wholesale
brokered deposits
|
601,481
|
608,562
|
358,197
|
443,171
|
458,694
|
Total
deposits
|
$5,314,478
|
$5,268,514
|
$5,018,962
|
$5,069,857
|
$5,006,629
|
|
June 30,
2023
|
|
December 31,
2022
|
|
Balance
|
% of Total
Deposits
|
|
Balance
|
% of Total
Deposits
|
Uninsured
Deposits:
|
|
|
|
|
|
Uninsured
deposits (1)
|
$1,369,174
|
26 %
|
|
$1,514,900
|
30 %
|
Less: affiliate
deposits (2)
|
119,034
|
2
|
|
210,444
|
4
|
Uninsured deposits,
excluding affiliate deposits
|
1,250,140
|
24
|
|
1,304,456
|
26
|
Less:
fully-collateralized preferred deposits (3)
|
313,237
|
6
|
|
329,868
|
7
|
Uninsured deposits,
after exclusions
|
$936,903
|
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.
|
|
June 30,
2023
|
December 31,
2022
|
Contingent
Liquidity:
|
|
|
Federal Home Loan Bank
of Boston
|
$968,004
|
$668,295
|
Federal Reserve Bank of
Boston
|
25,007
|
27,059
|
Unencumbered
securities
|
729,830
|
691,893
|
Total
|
$1,722,841
|
$1,387,247
|
|
|
|
Percentage of total
contingent liquidity to uninsured deposits
|
125.8 %
|
91.6 %
|
Percentage of total
contingent liquidity to uninsured deposits, after
exclusions
|
183.9 %
|
142.3 %
|
Washington Trust
Bancorp, Inc. and Subsidiaries
|
CREDIT & ASSET
QUALITY DATA
|
(Unaudited; Dollars in
thousands)
|
|
|
|
Jun 30,
2023
|
Mar 31,
2023
|
Dec 31,
2022
|
Sep 30,
2022
|
Jun 30,
2022
|
Asset Quality
Ratios:
|
|
|
|
|
|
Nonperforming assets to
total assets
|
0.16 %
|
0.21 %
|
0.19 %
|
0.19 %
|
0.21 %
|
Nonaccrual loans to
total loans
|
0.19 %
|
0.27 %
|
0.25 %
|
0.25 %
|
0.28 %
|
Total past due loans to
total loans
|
0.12 %
|
0.15 %
|
0.23 %
|
0.16 %
|
0.19 %
|
Allowance for credit
losses on loans to nonaccrual loans
|
378.04 %
|
277.40 %
|
296.02 %
|
304.10 %
|
292.55 %
|
Allowance for credit
losses on loans to total loans
|
0.73 %
|
0.74 %
|
0.74 %
|
0.76 %
|
0.81 %
|
|
|
|
|
|
|
Nonperforming
Assets:
|
|
|
|
|
|
Commercial real
estate
|
$—
|
$1,601
|
$—
|
$—
|
$—
|
Commercial &
industrial
|
899
|
920
|
—
|
—
|
—
|
Total
commercial
|
899
|
2,521
|
—
|
—
|
—
|
Residential real
estate
|
8,542
|
10,470
|
11,894
|
11,700
|
11,815
|
Home equity
|
966
|
989
|
952
|
422
|
599
|
Other
consumer
|
—
|
—
|
—
|
—
|
—
|
Total
consumer
|
966
|
989
|
952
|
422
|
599
|
Total nonaccrual
loans
|
10,407
|
13,980
|
12,846
|
12,122
|
12,414
|
Other real estate
owned
|
683
|
683
|
—
|
—
|
—
|
Total nonperforming
assets
|
$11,090
|
$14,663
|
$12,846
|
$12,122
|
$12,414
|
|
|
|
|
|
|
Past Due Loans (30
days or more past due):
|
|
|
|
|
|
Commercial real
estate
|
$—
|
$1,188
|
$1,187
|
$—
|
$—
|
Commercial &
industrial
|
223
|
229
|
265
|
4
|
7
|
Total
commercial
|
223
|
1,417
|
1,452
|
4
|
7
|
Residential real
estate
|
4,384
|
5,730
|
8,875
|
7,256
|
7,794
|
Home equity
|
1,509
|
833
|
1,235
|
252
|
728
|
Other
consumer
|
214
|
15
|
16
|
17
|
28
|
Total
consumer
|
1,723
|
848
|
1,251
|
269
|
756
|
Total past due
loans
|
$6,330
|
$7,995
|
$11,578
|
$7,529
|
$8,557
|
|
|
|
|
|
|
Accruing loans 90 days
or more past due
|
$—
|
$—
|
$—
|
$—
|
$—
|
Nonaccrual loans
included in past due loans
|
$3,672
|
$5,648
|
$7,196
|
$7,059
|
$6,817
|
Washington Trust
Bancorp, Inc. and Subsidiaries
|
CREDIT & ASSET
QUALITY DATA
|
(Unaudited; Dollars in
thousands)
|
|
For the Three Months
Ended
|
|
For the Six Months
Ended
|
|
Jun 30,
2023
|
Mar 31,
2023
|
Dec 31,
2022
|
Sep 30,
2022
|
Jun 30,
2022
|
|
Jun 30,
2023
|
Jun 30,
2022
|
Nonaccrual Loan
Activity:
|
|
|
|
|
|
|
|
|
Balance at beginning of
period
|
$13,980
|
$12,846
|
$12,122
|
$12,414
|
$12,589
|
|
$12,846
|
$14,203
|
Additions to nonaccrual
status
|
600
|
2,570
|
2,485
|
521
|
158
|
|
3,170
|
585
|
Loans returned to
accruing status
|
(1,329)
|
(110)
|
—
|
(400)
|
(236)
|
|
(1,439)
|
(299)
|
Loans
charged-off
|
(52)
|
(61)
|
(62)
|
(63)
|
(23)
|
|
(113)
|
(59)
|
Loans transferred to
other real estate owned
|
—
|
(683)
|
—
|
—
|
—
|
|
(683)
|
—
|
Payments, payoffs and
other changes
|
(2,792)
|
(582)
|
(1,699)
|
(350)
|
(74)
|
|
(3,374)
|
(2,016)
|
Balance at end of
period
|
$10,407
|
$13,980
|
$12,846
|
$12,122
|
$12,414
|
|
$10,407
|
$12,414
|
|
|
|
|
|
|
|
|
|
Allowance for Credit
Losses on Loans:
|
|
|
|
|
|
|
|
|
Balance at beginning of
period
|
$38,780
|
$38,027
|
$36,863
|
$36,317
|
$39,236
|
|
$38,027
|
$39,088
|
Provision for credit
losses on loans (1)
|
600
|
800
|
900
|
600
|
(2,929)
|
|
1,400
|
(2,929)
|
Charge-offs
|
(52)
|
(61)
|
(62)
|
(63)
|
(23)
|
|
(113)
|
(59)
|
Recoveries
|
15
|
14
|
326
|
9
|
33
|
|
29
|
217
|
Balance at end of
period
|
$39,343
|
$38,780
|
$38,027
|
$36,863
|
$36,317
|
|
$39,343
|
$36,317
|
|
|
|
|
|
|
|
|
|
Allowance for Credit
Losses on Unfunded Commitments:
|
|
|
|
|
|
|
|
Balance at beginning of
period
|
$2,290
|
$2,290
|
$2,390
|
$2,190
|
$2,261
|
|
$2,290
|
$2,161
|
Provision for credit
losses on unfunded commitments (1)
|
100
|
—
|
(100)
|
200
|
(71)
|
|
100
|
29
|
Balance at end of
period (2)
|
$2,390
|
$2,290
|
$2,290
|
$2,390
|
$2,190
|
|
$2,390
|
$2,190
|
|
|
(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 Six Months
Ended
|
|
Jun 30,
2023
|
Mar 31,
2023
|
Dec 31,
2022
|
Sep 30,
2022
|
Jun 30,
2022
|
|
Jun 30,
2023
|
Jun 30,
2022
|
Net Loan Charge-Offs
(Recoveries):
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
$—
|
$—
|
($300)
|
$—
|
$—
|
|
$—
|
($145)
|
Commercial &
industrial
|
5
|
6
|
10
|
9
|
(11)
|
|
11
|
(12)
|
Total
commercial
|
5
|
6
|
(290)
|
9
|
(11)
|
|
11
|
(157)
|
Residential real
estate
|
—
|
—
|
—
|
—
|
—
|
|
—
|
(21)
|
Home equity
|
(2)
|
(1)
|
(8)
|
—
|
(2)
|
|
(3)
|
(4)
|
Other
consumer
|
34
|
42
|
34
|
45
|
3
|
|
76
|
24
|
Total
consumer
|
32
|
41
|
26
|
45
|
1
|
|
73
|
20
|
Total
|
$37
|
$47
|
($264)
|
$54
|
($10)
|
|
$84
|
($158)
|
|
|
|
|
|
|
|
|
|
Net charge-offs
(recoveries) to average loans - annualized
|
— %
|
— %
|
(0.02 %)
|
— %
|
— %
|
|
— %
|
(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
|
June 30,
2023
|
|
March 31,
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
|
$109,204
|
$1,279
|
4.70 %
|
|
$103,269
|
$1,070
|
4.20 %
|
|
$5,935
|
$209
|
0.50 %
|
Mortgage loans held for
sale
|
18,647
|
241
|
5.18
|
|
13,132
|
152
|
4.69
|
|
5,515
|
89
|
0.49
|
Taxable debt
securities
|
1,201,973
|
7,403
|
2.47
|
|
1,193,852
|
7,194
|
2.44
|
|
8,121
|
209
|
0.03
|
FHLB stock
|
43,815
|
858
|
7.85
|
|
46,102
|
597
|
5.25
|
|
(2,287)
|
261
|
2.60
|
Commercial real
estate
|
1,928,461
|
28,800
|
5.99
|
|
1,859,331
|
25,300
|
5.52
|
|
69,130
|
3,500
|
0.47
|
Commercial &
industrial
|
615,101
|
9,458
|
6.17
|
|
630,778
|
9,070
|
5.83
|
|
(15,677)
|
388
|
0.34
|
Total
commercial
|
2,543,562
|
38,258
|
6.03
|
|
2,490,109
|
34,370
|
5.60
|
|
53,453
|
3,888
|
0.43
|
Residential real
estate
|
2,448,204
|
23,137
|
3.79
|
|
2,353,266
|
21,664
|
3.73
|
|
94,938
|
1,473
|
0.06
|
Home equity
|
292,195
|
4,082
|
5.60
|
|
286,348
|
3,759
|
5.32
|
|
5,847
|
323
|
0.28
|
Other
|
17,808
|
207
|
4.66
|
|
16,405
|
184
|
4.55
|
|
1,403
|
23
|
0.11
|
Total
consumer
|
310,003
|
4,289
|
5.55
|
|
302,753
|
3,943
|
5.28
|
|
7,250
|
346
|
0.27
|
Total loans
|
5,301,769
|
65,684
|
4.97
|
|
5,146,128
|
59,977
|
4.73
|
|
155,641
|
5,707
|
0.24
|
Total interest-earning
assets
|
6,675,408
|
75,465
|
4.53
|
|
6,502,483
|
68,990
|
4.30
|
|
172,925
|
6,475
|
0.23
|
Noninterest-earning
assets
|
263,830
|
|
|
|
241,513
|
|
|
|
22,317
|
|
|
Total assets
|
$6,939,238
|
|
|
|
$6,743,996
|
|
|
|
$195,242
|
|
|
Liabilities and
Shareholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits (in-
market)
|
$393,824
|
$4,090
|
4.17 %
|
|
$298,158
|
$2,639
|
3.59 %
|
|
$95,666
|
$1,451
|
0.58 %
|
NOW accounts
|
781,226
|
400
|
0.21
|
|
821,590
|
358
|
0.18
|
|
(40,364)
|
42
|
0.03
|
Money market
accounts
|
1,199,761
|
9,302
|
3.11
|
|
1,253,141
|
7,576
|
2.45
|
|
(53,380)
|
1,726
|
0.66
|
Savings
accounts
|
522,300
|
321
|
0.25
|
|
566,258
|
314
|
0.22
|
|
(43,958)
|
7
|
0.03
|
Time deposits
(in-market)
|
1,000,284
|
7,960
|
3.19
|
|
830,574
|
4,577
|
2.23
|
|
169,710
|
3,383
|
0.96
|
Interest-bearing
in-market deposits
|
3,897,395
|
22,073
|
2.27
|
|
3,769,721
|
15,464
|
1.66
|
|
127,674
|
6,609
|
0.61
|
Wholesale brokered
demand deposits
|
28
|
—
|
—
|
|
16,257
|
177
|
4.42
|
|
(16,229)
|
(177)
|
(4.42)
|
Wholesale brokered time
deposits
|
650,381
|
7,631
|
4.71
|
|
427,051
|
3,948
|
3.75
|
|
223,330
|
3,683
|
0.96
|
Wholesale brokered
deposits
|
650,409
|
7,631
|
4.71
|
|
443,308
|
4,125
|
3.77
|
|
207,101
|
3,506
|
0.94
|
Total interest-bearing
deposits
|
4,547,804
|
29,704
|
2.62
|
|
4,213,029
|
19,589
|
1.89
|
|
334,775
|
10,115
|
0.73
|
FHLB
advances
|
979,835
|
11,652
|
4.77
|
|
1,044,056
|
11,626
|
4.52
|
|
(64,221)
|
26
|
0.25
|
Junior subordinated
debentures
|
22,681
|
374
|
6.61
|
|
22,681
|
354
|
6.33
|
|
—
|
20
|
0.28
|
Total interest-bearing
liabilities
|
5,550,320
|
41,730
|
3.02
|
|
5,279,766
|
31,569
|
2.42
|
|
270,554
|
10,161
|
0.60
|
Noninterest-bearing
demand deposits
|
770,075
|
|
|
|
835,298
|
|
|
|
(65,223)
|
|
|
Other
liabilities
|
152,616
|
|
|
|
168,826
|
|
|
|
(16,210)
|
|
|
Shareholders'
equity
|
466,227
|
|
|
|
460,106
|
|
|
|
6,121
|
|
|
Total liabilities and
shareholders' equity
|
$6,939,238
|
|
|
|
$6,743,996
|
|
|
|
$195,242
|
|
|
Net interest income
(FTE)
|
|
$33,735
|
|
|
|
$37,421
|
|
|
|
($3,686)
|
|
Interest rate
spread
|
|
|
1.51 %
|
|
|
|
1.88 %
|
|
|
|
(0.37 %)
|
Net interest
margin
|
|
|
2.03 %
|
|
|
|
2.33 %
|
|
|
|
(0.30 %)
|
Interest income amounts presented in the preceding table include
the following adjustments for taxable equivalency:
For the Three Months
Ended
|
Jun 30,
2023
|
Mar 31,
2023
|
Change
|
Commercial
loans
|
$235
|
$228
|
$7
|
Total
|
$235
|
$228
|
$7
|
|
|
|
|
|
|
|
|
|
|
Washington Trust
Bancorp, Inc. and Subsidiaries
|
CONSOLIDATED AVERAGE
BALANCE SHEETS (FTE Basis)
|
(Unaudited; Dollars in
thousands)
|
For the Six Months
Ended
|
June 30,
2023
|
June 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
|
$106,253
|
$2,349
|
4.46 %
|
$146,852
|
$266
|
0.37 %
|
($40,599)
|
$2,083
|
4.09 %
|
Mortgage loans for
sale
|
15,905
|
393
|
4.98
|
27,688
|
490
|
3.57
|
(11,783)
|
(97)
|
1.41
|
Taxable debt
securities
|
1,197,935
|
14,597
|
2.46
|
1,084,246
|
9,148
|
1.70
|
113,689
|
5,449
|
0.76
|
FHLB stock
|
44,952
|
1,455
|
6.53
|
10,849
|
130
|
2.42
|
34,103
|
1,325
|
4.11
|
Commercial real
estate
|
1,894,087
|
54,100
|
5.76
|
1,625,537
|
25,386
|
3.15
|
268,550
|
28,714
|
2.61
|
Commercial &
industrial
|
622,896
|
18,528
|
6.00
|
627,667
|
12,342
|
3.97
|
(4,771)
|
6,186
|
2.03
|
Total
commercial
|
2,516,983
|
72,628
|
5.82
|
2,253,204
|
37,728
|
3.38
|
263,779
|
34,900
|
2.44
|
Residential real
estate
|
2,400,997
|
44,801
|
3.76
|
1,788,431
|
28,997
|
3.27
|
612,566
|
15,804
|
0.49
|
Home equity
|
289,288
|
7,841
|
5.47
|
251,796
|
3,950
|
3.16
|
37,492
|
3,891
|
2.31
|
Other
|
17,110
|
391
|
4.61
|
16,349
|
378
|
4.66
|
761
|
13
|
(0.05)
|
Total
consumer
|
306,398
|
8,232
|
5.42
|
268,145
|
4,328
|
3.25
|
38,253
|
3,904
|
2.17
|
Total loans
|
5,224,378
|
125,661
|
4.85
|
4,309,780
|
71,053
|
3.32
|
914,598
|
54,608
|
1.53
|
Total interest-earning
assets
|
6,589,423
|
144,455
|
4.42
|
5,579,415
|
81,087
|
2.93
|
1,010,008
|
63,368
|
1.49
|
Noninterest-earning
assets
|
252,733
|
|
|
273,521
|
|
|
(20,788)
|
|
|
Total assets
|
$6,842,156
|
|
|
$5,852,936
|
|
|
$989,220
|
|
|
Liabilities and
Shareholders' Equity:
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits (in-
market)
|
$346,255
|
$6,728
|
3.92 %
|
$248,580
|
$292
|
0.24 %
|
$97,675
|
$6,436
|
3.68 %
|
NOW accounts
|
801,296
|
758
|
0.19
|
865,647
|
281
|
0.07
|
(64,351)
|
477
|
0.12
|
Money market
accounts
|
1,226,303
|
16,878
|
2.78
|
1,221,923
|
1,753
|
0.29
|
4,380
|
15,125
|
2.49
|
Savings
accounts
|
544,159
|
636
|
0.24
|
563,837
|
191
|
0.07
|
(19,678)
|
445
|
0.17
|
Time deposits
(in-market)
|
915,898
|
12,537
|
2.76
|
801,479
|
3,968
|
1.00
|
114,419
|
8,569
|
1.76
|
Interest-bearing
in-market deposits
|
3,833,911
|
37,537
|
1.97
|
3,701,466
|
6,485
|
0.35
|
132,445
|
31,052
|
1.62
|
Wholesale brokered
demand deposits
|
8,097
|
177
|
4.41
|
10,173
|
45
|
0.89
|
(2,076)
|
132
|
3.52
|
Wholesale brokered time
deposits
|
539,333
|
11,579
|
4.33
|
403,826
|
536
|
0.27
|
135,507
|
11,043
|
4.06
|
Wholesale brokered
deposits
|
547,430
|
11,756
|
4.33
|
413,999
|
581
|
0.28
|
133,431
|
11,175
|
4.05
|
Total interest-bearing
deposits
|
4,381,341
|
49,293
|
2.27
|
4,115,465
|
7,066
|
0.35
|
265,876
|
42,227
|
1.92
|
FHLB
advances
|
1,011,768
|
23,278
|
4.64
|
151,331
|
657
|
0.88
|
860,437
|
22,621
|
3.76
|
Junior subordinated
debentures
|
22,681
|
728
|
6.47
|
22,681
|
237
|
2.11
|
—
|
491
|
4.36
|
Total interest-bearing
liabilities
|
5,415,790
|
73,299
|
2.73
|
4,289,477
|
7,960
|
0.37
|
1,126,313
|
65,339
|
2.36
|
Noninterest-bearing
demand deposits
|
802,506
|
|
|
915,918
|
|
|
(113,412)
|
|
|
Other
liabilities
|
160,677
|
|
|
123,321
|
|
|
37,356
|
|
|
Shareholders'
equity
|
463,183
|
|
|
524,220
|
|
|
(61,037)
|
|
|
Total liabilities and
shareholders' equity
|
$6,842,156
|
|
|
$5,852,936
|
|
|
$989,220
|
|
|
Net interest income
(FTE)
|
|
$71,156
|
|
|
$73,127
|
|
|
($1,971)
|
|
Interest rate
spread
|
|
|
1.69 %
|
|
|
2.56 %
|
|
|
(0.87 %)
|
Net interest
margin
|
|
|
2.18 %
|
|
|
2.64 %
|
|
|
(0.46 %)
|
Interest income amounts presented in the preceding table include
the following adjustments for taxable equivalency:
|
|
|
|
For the Six Months
Ended
|
Jun 30,
2023
|
Jun 30,
2022
|
Change
|
Commercial
loans
|
$463
|
$521
|
($58)
|
Total
|
$463
|
$521
|
($58)
|
Washington Trust
Bancorp, Inc. and Subsidiaries
|
SUPPLEMENTAL
INFORMATION - Calculation of Non-GAAP Financial
Measures
|
(Unaudited; Dollars in
thousands, except per share amounts)
|
|
|
|
Jun 30,
2023
|
Mar 31,
2023
|
Dec 31,
2022
|
Sep 30,
2022
|
Jun 30,
2022
|
Tangible Book Value
per Share:
|
|
|
|
|
|
Total shareholders'
equity, as reported
|
$459,161
|
$464,983
|
$453,669
|
$432,274
|
$476,634
|
Less:
|
|
|
|
|
|
Goodwill
|
63,909
|
63,909
|
63,909
|
63,909
|
63,909
|
Identifiable intangible
assets, net
|
4,130
|
4,342
|
4,554
|
4,766
|
4,981
|
Total tangible
shareholders' equity
|
$391,122
|
$396,732
|
$385,206
|
$363,599
|
$407,744
|
|
|
|
|
|
|
Shares outstanding, as
reported
|
17,019
|
16,986
|
17,183
|
17,171
|
17,190
|
|
|
|
|
|
|
Book value per share -
GAAP
|
$26.98
|
$27.37
|
$26.40
|
$25.17
|
$27.73
|
Tangible book value per
share - Non-GAAP
|
$22.98
|
$23.36
|
$22.42
|
$21.18
|
$23.72
|
|
|
|
|
|
|
Tangible Equity to
Tangible Assets:
|
|
|
|
|
|
Total tangible
shareholders' equity
|
$391,122
|
$396,732
|
$385,206
|
$363,599
|
$407,744
|
|
|
|
|
|
|
Total assets, as
reported
|
$7,011,760
|
$6,859,182
|
$6,660,051
|
$6,408,051
|
$5,982,891
|
Less:
|
|
|
|
|
|
Goodwill
|
63,909
|
63,909
|
63,909
|
63,909
|
63,909
|
Identifiable intangible
assets, net
|
4,130
|
4,342
|
4,554
|
4,766
|
4,981
|
Total tangible
assets
|
$6,943,721
|
$6,790,931
|
$6,591,588
|
$6,339,376
|
$5,914,001
|
|
|
|
|
|
|
Equity to assets -
GAAP
|
6.55 %
|
6.78 %
|
6.81 %
|
6.75 %
|
7.97 %
|
Tangible equity to
tangible assets - Non-GAAP
|
5.63 %
|
5.84 %
|
5.84 %
|
5.74 %
|
6.89 %
|
|
For the Three Months
Ended
|
|
For the Six Months
Ended
|
|
Jun 30,
2023
|
Mar 31,
2023
|
Dec 31,
2022
|
Sep 30,
2022
|
Jun 30,
2022
|
|
Jun 30,
2023
|
Jun 30,
2022
|
Return on Average
Tangible Assets:
|
|
|
|
|
|
|
|
|
Net income, as
reported
|
$11,256
|
$12,812
|
$16,573
|
$18,668
|
$19,957
|
|
$24,068
|
$36,440
|
|
|
|
|
|
|
|
|
|
Total average assets,
as reported
|
$6,939,238
|
$6,743,996
|
$6,480,872
|
$6,216,129
|
$5,841,332
|
|
$6,842,156
|
$5,852,936
|
Less average balances
of:
|
|
|
|
|
|
|
|
|
Goodwill
|
63,909
|
63,909
|
63,909
|
63,909
|
63,909
|
|
63,909
|
63,909
|
Identifiable intangible
assets, net
|
4,233
|
4,445
|
4,657
|
4,871
|
5,086
|
|
4,338
|
5,194
|
Total average tangible
assets
|
$6,871,096
|
$6,675,642
|
$6,412,306
|
$6,147,349
|
$5,772,337
|
|
$6,773,909
|
$5,783,833
|
|
|
|
|
|
|
|
|
|
Return on average
assets - GAAP
|
0.65 %
|
0.77 %
|
1.01 %
|
1.19 %
|
1.37 %
|
|
0.71 %
|
1.26 %
|
Return on average
tangible assets - Non-
GAAP
|
0.66 %
|
0.78 %
|
1.03 %
|
1.20 %
|
1.39 %
|
|
0.72 %
|
1.27 %
|
|
|
|
|
|
|
|
|
|
Return on Average
Tangible Equity:
|
|
|
|
|
|
|
|
|
Net income available to
common
shareholders, as reported
|
$11,237
|
$12,783
|
$16,535
|
$18,615
|
$19,900
|
|
$24,020
|
$36,329
|
|
|
|
|
|
|
|
|
|
Total average equity,
as reported
|
$466,227
|
$460,106
|
$438,347
|
$487,230
|
$495,573
|
|
$463,183
|
$524,220
|
Less average balances
of:
|
|
|
|
|
|
|
|
|
Goodwill
|
63,909
|
63,909
|
63,909
|
63,909
|
63,909
|
|
63,909
|
63,909
|
Identifiable intangible
assets, net
|
4,233
|
4,445
|
4,657
|
4,871
|
5,086
|
|
4,338
|
5,194
|
Total average tangible
equity
|
$398,085
|
$391,752
|
$369,781
|
$418,450
|
$426,578
|
|
$394,936
|
$455,117
|
|
|
|
|
|
|
|
|
|
Return on average
equity - GAAP
|
9.67 %
|
11.27 %
|
14.96 %
|
15.16 %
|
16.11 %
|
|
10.46 %
|
13.98 %
|
Return on average
tangible equity - Non-
GAAP
|
11.32 %
|
13.23 %
|
17.74 %
|
17.65 %
|
18.71 %
|
|
12.26 %
|
16.10 %
|
Category: Earnings
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SOURCE Washington Trust Bancorp, Inc.