WESTERLY, R.I., April 21, 2025 /PRNewswire/ -- Washington Trust Bancorp, Inc. (the "Corporation") (NASDAQ:WASH), parent company of The Washington Trust Company (the "Bank"), today reported first quarter 2025 net income of $12.2 million, or $0.63 per diluted share.
In the first quarter of 2025, sales leaseback transactions were completed for five branch locations and a pre-tax net gain on the sale of the bank-owned properties totaling $7.0 million was recognized within noninterest income. Additionally, in connection with the termination of the Corporation's qualified pension plan, a pre-tax non-cash pension plan settlement charge of $6.4 million was recognized within noninterest expenses. Excluding the impact of these items, adjusted net income (non-GAAP) totaled $11.8 million, or $0.61 per diluted share, in the first quarter of 2025. In the fourth quarter of 2024, a net loss of $60.8 million, or a loss of $3.46 per diluted share, was recognized. Excluding the impact of the previously disclosed balance sheet repositioning sale transactions in the preceding quarter, adjusted net income (non-GAAP) was $10.4 million, or $0.59 per diluted share for the fourth quarter of 2024.
"Washington Trust's first quarter results reflected our effective focus on our balance sheet, resulting in expansion of net interest margin and in-market deposit growth," stated Edward O. Handy III, Washington Trust Chairman and Chief Executive Officer. "In our 225th year, we remain steadfast in our commitment to our customers and the communities we serve."
Other selected financial highlights for the first quarter 2025 include:
- The net interest margin was 2.29% in the first quarter, up by 34 basis points from the 1.95% reported in the preceding quarter, reflecting benefits from the balance sheet repositioning transactions.
- A provision for credit losses of $1.2 million was recognized for the first quarter, up by $200 thousand from the fourth quarter of 2024.
- Wealth management revenues in the first quarter decreased by 2% from the preceding quarter. End of period assets under administration ("AUA") totaled $6.8 billion, down by 4% from December 31, 2024.
- Mortgage banking revenues in the first quarter decreased by 19% from the preceding quarter, reflecting a lower volume of loans sold to the secondary market.
- Total loans amounted to $5.1 billion, down by 1% from December 31, 2024.
- In-market deposits (total deposits less wholesale brokered deposits) amounted to $5.0 billion, up by 4% from December 31, 2024.
Net Interest Income
Net interest income was $36.4 million for the first quarter of 2025, up by $3.5 million, or 11%, from the fourth quarter of 2024. The net interest margin was 2.29% for the first quarter, an increase of 34 basis points from the preceding quarter. This improvement reflected benefits from the balance sheet repositioning transactions executed in the latter portion of the preceding quarter, which included the sale of lower-yielding securities and loans, reinvestment into higher-yielding securities, and pay-down of higher-cost wholesale funding. Linked quarter changes included:
- Average interest-earning assets decreased by $277 million, largely reflecting a decrease in loans, partially offset by an increase in average balance of deposits at correspondent banks. The yield on interest-earning assets for the first quarter was 4.98%, up by 15 basis points from the preceding quarter.
- Average interest-bearing liabilities decreased by $219 million, as in-market deposits increased by $167 million while wholesale funding balances decreased by $386 million. The cost of interest-bearing liabilities for the first quarter of 2025 was 3.19%, down by 22 basis points from the preceding quarter.
Noninterest Income
Noninterest income was $22.6 million for the first quarter of 2025, compared to a loss of $77.9 million in the fourth quarter of 2024. Adjusted noninterest income (non-GAAP) was $15.6 million for the first quarter, down by $394 thousand, or 2%, from the preceding quarter. Our two largest sources of noninterest income are discussed below:
- Wealth management revenues amounted to $9.9 million in the first quarter of 2025, down by $158 thousand, or 2%, from the preceding quarter, reflecting a decrease in asset-based revenues. The end of period AUA balance at March 31, 2025 amounted to $6.8 billion, down by $259 million, or 4%, from December 31, 2024.
- Mortgage banking revenues totaled $2.3 million for the first quarter of 2025, down by $544 thousand, or 19%, from the preceding quarter. Loans sold amounted to $75.5 million in the first quarter of 2025, down by $37.6 million, or 33%, from the fourth quarter of 2024.
Noninterest Expense
Noninterest expense totaled $42.2 million for the first quarter of 2025, up by $7.9 million, or 23%, from the fourth quarter of 2024. Adjusted noninterest expense (non-GAAP) was $35.8 million for the first quarter, up by $1.5 million, or 4%, from the preceding quarter. Salaries and employee benefits expense, our largest component of noninterest expense, amounted to $22.4 million, up by $547 thousand, or 3%, from the preceding quarter, which includes higher payroll taxes associated with the start of a new calendar year. The remaining increase in noninterest expense included higher net occupancy costs and modest changes across a variety of expense categories.
Income Tax
For the first quarter of 2025, income tax expense of $3.5 million was recognized, reflecting an effective tax rate of 22.3%. Based on current federal and applicable state income tax statutes, the Corporation currently expects its full-year 2025 effective tax rate to be approximately 22.4%.
Investment Securities
The securities portfolio totaled $918 million at March 31, 2025, up by $1 million, or 0.1%, from December 31, 2024. An increase in the fair value of available for sale securities was essentially offset by routine pay-downs on mortgage-backed debt securities in the quarter. The securities portfolio represented 14% of total assets at March 31, 2025, compared to 13% of total assets at December 31, 2024.
Loans
Total loans amounted to $5.1 billion at March 31, 2025, down by $42 million, or 1%, from the end of the preceding quarter. These changes included:
- Commercial loans decreased by $28 million, or 1%, from December 31, 2024.
- Residential real estate loans decreased by $13 million, or 1%, from December 31, 2024.
- Consumer loans decreased by $1 million, or 0.3%, from December 31, 2024.
Deposits and Borrowings
Total deposits amounted to $5.0 billion at March 31, 2025, down by $75 million, or 1%, from the end of the preceding quarter.
In-market deposits, which exclude wholesale brokered deposits, amounted to $5.0 billion at March 31, 2025, up by $195 million, or 4%, from December 31, 2024, largely due to increases in high-rate savings account balances.
Wholesale brokered deposits amounted to $27 million and were down by $270 million, or 91%, from December 31, 2024. FHLB advances totaled $850 million at March 31, 2025, down by $275 million, or 24%, from December 31, 2024. These decreases reflected less need for wholesale funding and the use of net proceeds from the aforementioned balance sheet repositioning transactions.
As of March 31, 2025, contingent liquidity amounted to $1.8 billion and consisted of available cash, unencumbered securities, and unused collateralized borrowing capacity.
Asset Quality
Nonaccrual loans were $21.6 million, or 0.42% of total loans, at March 31, 2025, compared to $23.3 million, or 0.45% of total loans, at December 31, 2024. The composition of nonaccrual loans at March 31, 2025 was 40% commercial and 60% residential and consumer.
Past due loans were $10.2 million, or 0.20% of total loans, at March 31, 2025, compared to $12.0 million, or 0.23% of total loans, at December 31, 2024. The composition of past due loans at March 31, 2025 was 11% commercial and 89% residential and consumer.
The allowance for credit losses ("ACL") on loans amounted to $41.1 million, or 0.81% of total loans, at March 31, 2025, compared to $42.0 million, or 0.82% of total loans, at December 31, 2024. The ACL on unfunded commitments, included in other liabilities on the Consolidated Balance Sheets, was $1.2 million at March 31, 2025, compared to $1.4 million at December 31, 2024.
The provision for credit losses totaled $1.2 million in the first quarter of 2025, up by $200 thousand from the preceding quarter, including loss allocations on individually analyzed nonaccrual commercial loans and reflecting our estimate of forecasted economic conditions. Net charge-offs amounted to $2.3 million in the first quarter of 2025, compared to $1.9 million in the preceding quarter. The charge-offs recognized in both the first quarter of 2025 and fourth quarter of 2024 were concentrated in the commercial real estate office portfolio segment.
Capital and Dividends
Total shareholders' equity was $521.7 million at March 31, 2025, up by $22.0 million, or 4%, from December 31, 2024. Net income of $12.2 million and improvement of $20.0 million in the accumulated other comprehensive loss ("AOCL") component of shareholders' equity were partially offset by quarterly dividend declarations of $11.0 million. The improvement in AOCL included an increase in fair value of available for sale debt securities, as well as the effects of the remeasurement of the qualified pension plan upon settlement and the reclassification of the after-tax pension plan settlement charge to noninterest expenses.
The Board of Directors declared a quarterly dividend of 56 cents per share for the quarter ended March 31, 2025. The dividend was paid on April 11, 2025 to shareholders of record on April 1, 2025.
Capital levels at March 31, 2025 exceeded the regulatory minimum levels to be considered well capitalized, with a total risk-based capital ratio of 13.13% at March 31, 2025, compared to 12.47% at December 31, 2024. Book value per share was $27.06 at March 31, 2025, compared to $25.93 at December 31, 2024.
Conference Call
Washington Trust will host a conference call to discuss its first quarter results, business highlights, and outlook on Monday, April 21, 2025 at 10:00 a.m. (Eastern Time). Individuals may dial in to the call at 1-833-470-1428 and enter Access Code 572620. 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 256173. The audio replay will be available through May 5, 2025. 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 June 30, 2025.
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 (including the impact of recently imposed tariffs by the U.S. Administration and foreign governments, inflation and concerns about liquidity) on a national basis and in the local markets in which we operate;
- interest rate changes or volatility, as well as changes in the balance and mix of loans and deposits;
- changes in customer behavior due to political, business and economic conditions;
- 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, and evolving interpretations of, existing and future laws, rules and regulations;
- changes in 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, 2024, 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, such as adjusted noninterest income, adjusted noninterest expense, adjusted income before income taxes, adjusted income tax expense, adjusted effective tax rate, adjusted net income, adjusted net income available to common shareholders, adjusted diluted earnings per common share, adjusted return on average assets, adjusted return on average equity, and adjusted efficiency ratio, as well as 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) | |||||
Mar 31, | Dec 31, | Sep 30, | Jun 30, | Mar 31, | |
Assets: | |||||
Cash and due from banks | $33,394 | $21,534 | $33,694 | $28,211 | $52,544 |
Interest-earning deposits with correspondent banks | 82,804 | 88,368 | 173,277 | 75,666 | 49,592 |
Short-term investments | 4,041 | 3,987 | 3,772 | 3,654 | 3,452 |
Mortgage loans held for sale, at fair value | 21,953 | 21,708 | 20,864 | 26,116 | 25,462 |
Mortgage loans held for sale, at lower of cost or market | — | 281,706 | — | — | — |
Premises and equipment held for sale, lower of cost or market | — | 4,788 | — | — | — |
Available for sale debt securities, at fair value | 917,545 | 916,305 | 973,266 | 951,828 | 970,060 |
Federal Home Loan Bank stock, at cost | 38,899 | 49,817 | 57,439 | 66,166 | 55,512 |
Loans: | |||||
Total loans | 5,096,210 | 5,137,838 | 5,514,870 | 5,629,102 | 5,685,232 |
Less: allowance for credit losses on loans | 41,056 | 41,960 | 42,630 | 42,378 | 41,905 |
Net loans | 5,055,154 | 5,095,878 | 5,472,240 | 5,586,724 | 5,643,327 |
Premises and equipment, net | 26,068 | 26,873 | 32,145 | 31,866 | 31,914 |
Operating lease right-of-use assets | 36,048 | 26,943 | 27,612 | 28,387 | 29,216 |
Investment in bank-owned life insurance | 107,546 | 106,777 | 105,998 | 105,228 | 104,475 |
Goodwill | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 |
Identifiable intangible assets, net | 2,682 | 2,885 | 3,089 | 3,295 | 3,503 |
Other assets | 195,972 | 219,169 | 174,266 | 213,310 | 216,158 |
Total assets | $6,586,015 | $6,930,647 | $7,141,571 | $7,184,360 | $7,249,124 |
Liabilities: | |||||
Deposits: | |||||
Noninterest-bearing deposits | $625,590 | $661,776 | $665,706 | $645,661 | $648,929 |
Interest-bearing deposits | 4,414,991 | 4,454,024 | 4,506,184 | 4,330,465 | 4,698,964 |
Total deposits | 5,040,581 | 5,115,800 | 5,171,890 | 4,976,126 | 5,347,893 |
Federal Home Loan Bank advances | 850,000 | 1,125,000 | 1,300,000 | 1,550,000 | 1,240,000 |
Junior subordinated debentures | 22,681 | 22,681 | 22,681 | 22,681 | 22,681 |
Operating lease liabilities | 38,716 | 29,578 | 30,237 | 31,012 | 31,837 |
Other liabilities | 112,357 | 137,860 | 114,534 | 133,584 | 139,793 |
Total liabilities | 6,064,335 | 6,430,919 | 6,639,342 | 6,713,403 | 6,782,204 |
Shareholders' Equity: | |||||
Common stock | 1,223 | 1,223 | 1,085 | 1,085 | 1,085 |
Paid-in capital | 197,570 | 196,947 | 126,698 | 125,898 | 126,785 |
Retained earnings | 435,233 | 434,014 | 505,654 | 504,350 | 503,175 |
Accumulated other comprehensive loss | (99,179) | (119,171) | (117,158) | (146,326) | (148,913) |
Treasury stock, at cost | (13,167) | (13,285) | (14,050) | (14,050) | (15,212) |
Total shareholders' equity | 521,680 | 499,728 | 502,229 | 470,957 | 466,920 |
Total liabilities and shareholders' equity | $6,586,015 | $6,930,647 | $7,141,571 | $7,184,360 | $7,249,124 |
Washington Trust Bancorp, Inc. and Subsidiaries | ||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||
(Unaudited; Dollars and shares in thousands, except per share amounts) | ||||||
For the Three Months Ended | ||||||
Mar 31, | Dec 31, | Sep 30, | Jun 30, | Mar 31, | ||
Interest income: | ||||||
Interest and fees on loans | $66,656 | $71,432 | $75,989 | $76,240 | $75,636 | |
Interest on mortgage loans held for sale | 958 | 762 | 366 | 392 | 255 | |
Taxable interest on debt securities | 8,827 | 7,015 | 6,795 | 6,944 | 7,096 | |
Nontaxable interest on debt securities | 7 | 8 | — | — | — | |
Dividends on Federal Home Loan Bank stock | 1,022 | 1,312 | 1,262 | 1,124 | 1,073 | |
Other interest income | 1,993 | 1,310 | 3,174 | 1,297 | 1,196 | |
Total interest and dividend income | 79,463 | 81,839 | 87,586 | 85,997 | 85,256 | |
Interest expense: | ||||||
Deposits | 31,748 | 34,135 | 37,203 | 36,713 | 38,047 | |
Federal Home Loan Bank advances | 10,946 | 14,388 | 17,717 | 17,296 | 15,138 | |
Junior subordinated debentures | 347 | 380 | 404 | 403 | 406 | |
Total interest expense | 43,041 | 48,903 | 55,324 | 54,412 | 53,591 | |
Net interest income | 36,422 | 32,936 | 32,262 | 31,585 | 31,665 | |
Provision for credit losses | 1,200 | 1,000 | 200 | 500 | 700 | |
Net interest income after provision for credit losses | 35,222 | 31,936 | 32,062 | 31,085 | 30,965 | |
Noninterest income (loss): | ||||||
Wealth management revenues | 9,891 | 10,049 | 9,989 | 9,678 | 9,338 | |
Mortgage banking revenues | 2,304 | 2,848 | 2,866 | 2,761 | 2,506 | |
Card interchange fees | 1,509 | 1,255 | 1,321 | 1,275 | 1,145 | |
Service charges on deposit accounts | 744 | 794 | 784 | 769 | 685 | |
Loan related derivative income | 101 | 8 | 126 | 49 | 284 | |
Income from bank-owned life insurance | 769 | 779 | 770 | 753 | 739 | |
Realized losses on securities, net | — | (31,047) | — | — | — | |
Losses on sale of portfolio loans, net | — | (62,888) | — | — | — | |
Gain on sale of bank-owned properties, net | 6,994 | — | — | 988 | — | |
Other income | 331 | 310 | 416 | 387 | 2,466 | |
Total noninterest income (loss) | 22,643 | (77,892) | 16,272 | 16,660 | 17,163 | |
Noninterest expense: | ||||||
Salaries and employee benefits | 22,422 | 21,875 | 21,350 | 21,260 | 21,775 | |
Outsourced services | 4,346 | 4,197 | 4,185 | 4,096 | 3,780 | |
Net occupancy | 2,741 | 2,428 | 2,399 | 2,397 | 2,561 | |
Equipment | 891 | 936 | 924 | 958 | 1,020 | |
Legal, audit, and professional fees | 750 | 845 | 836 | 741 | 706 | |
FDIC deposit insurance costs | 1,262 | 1,266 | 1,402 | 1,404 | 1,441 | |
Advertising and promotion | 410 | 560 | 857 | 661 | 548 | |
Amortization of intangibles | 204 | 204 | 206 | 208 | 208 | |
Pension plan settlement charge | 6,436 | — | — | — | — | |
Other expenses | 2,734 | 1,981 | 2,345 | 2,185 | 2,324 | |
Total noninterest expense | 42,196 | 34,292 | 34,504 | 33,910 | 34,363 | |
Income (loss) before income taxes | 15,669 | (80,248) | 13,830 | 13,835 | 13,765 | |
Income tax expense (benefit) | 3,490 | (19,457) | 2,849 | 3,020 | 2,829 | |
Net income (loss) | $12,179 | ($60,791) | $10,981 | $10,815 | $10,936 | |
Net income (loss) available to common shareholders | $12,179 | ($60,776) | $10,973 | $10,807 | $10,924 | |
Weighted average common shares outstanding - basic | 19,276 | 17,452 | 17,058 | 17,052 | 17,033 | |
Weighted average common shares outstanding - diluted | 19,370 | 17,565 | 17,140 | 17,110 | 17,074 | |
Per share information: | Basic earnings per common share | $0.63 | ($3.48) | $0.64 | $0.63 | $0.64 |
Diluted earnings per common share | $0.63 | ($3.46) | $0.64 | $0.63 | $0.64 | |
Cash dividends declared | $0.56 | $0.56 | $0.56 | $0.56 | $0.56 | |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||
SELECTED FINANCIAL HIGHLIGHTS | |||||
(Unaudited; Dollars and shares in thousands, except per share amounts) | |||||
Mar 31, | Dec 31, | Sep 30, | Jun 30, | Mar 31, | |
Share and Equity Related Data: | |||||
Book value per share | $27.06 | $25.93 | $29.44 | $27.61 | $27.41 |
Tangible book value per share (non-GAAP) (1) | $23.61 | $22.46 | $25.51 | $23.67 | $23.45 |
Market value per share | $30.86 | $31.35 | $32.21 | $27.41 | $26.88 |
Shares issued at end of period | 19,562 | 19,562 | 17,363 | 17,363 | 17,363 |
Shares outstanding at end of period | 19,276 | 19,274 | 17,058 | 17,058 | 17,033 |
Capital Ratios (2): | |||||
Tier 1 risk-based capital | 12.23 % | 11.64 % | 11.39 % | 11.01 % | 10.84 % |
Total risk-based capital | 13.13 % | 12.47 % | 12.21 % | 11.81 % | 11.62 % |
Tier 1 leverage ratio | 8.45 % | 8.13 % | 7.85 % | 7.82 % | 7.81 % |
Common equity tier 1 | 11.76 % | 11.20 % | 10.95 % | 10.59 % | 10.42 % |
Balance Sheet Ratios: | |||||
Equity to assets | 7.92 % | 7.21 % | 7.03 % | 6.56 % | 6.44 % |
Tangible equity to tangible assets (non-GAAP) (1) | 6.98 % | 6.31 % | 6.15 % | 5.67 % | 5.56 % |
Loans to deposits (3) | 100.7 % | 105.5 % | 106.2 % | 112.8 % | 106.0 % |
For the Three Months Ended | |||||
Mar 31, | Dec 31, | Sep 30, | Jun 30, | Mar 31, | |
Performance Ratios (4): | |||||
Net interest margin (5) | 2.29 % | 1.95 % | 1.85 % | 1.83 % | 1.84 % |
Return on average assets (6) | 0.73 % | (3.45 %) | 0.60 % | 0.60 % | 0.61 % |
Adjusted return on average assets (non-GAAP) (1) | 0.71 % | 0.59 % | 0.60 % | 0.56 % | 0.52 % |
Return on average tangible assets (non-GAAP) (1) | 0.71 % | 0.60 % | 0.61 % | 0.57 % | 0.53 % |
Return on average equity (7) | 9.63 % | (48.25 %) | 8.99 % | 9.43 % | 9.33 % |
Adjusted return on average equity (non-GAAP) (1) | 9.30 % | 8.29 % | 8.99 % | 8.79 % | 7.99 % |
Return on average tangible equity (non-GAAP) (1) | 10.69 % | 9.57 % | 10.43 % | 10.29 % | 9.32 % |
Efficiency ratio (8) | 71.4 % | (76.3 %) | 71.1 % | 70.3 % | 70.4 % |
Adjusted efficiency ratio (non-GAAP) (1) | 68.7 % | 70.0 % | 71.1 % | 71.8 % | 73.5 % |
(1) | See the section labeled "Supplemental Information - Calculation of Non-GAAP Financial Measures" at the end of this document. |
(2) | Estimated for March 31, 2025 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) | Net income divided by average assets. |
(7) | Net income available for common shareholders divided by average equity. |
(8) | 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 | |||||
Mar 31, | Dec 31, | Sep 30, | Jun 30, | Mar 31, | |
Wealth Management Results | |||||
Wealth Management Revenues: | |||||
Asset-based revenues | $9,769 | $9,910 | $9,770 | $9,239 | $9,089 |
Transaction-based revenues | 122 | 139 | 219 | 439 | 249 |
Total wealth management revenues | $9,891 | $10,049 | $9,989 | $9,678 | $9,338 |
Assets Under Administration (AUA): | |||||
Balance at beginning of period | $7,077,802 | $7,052,408 | $6,803,491 | $6,858,322 | $6,588,406 |
Net investment (depreciation) appreciation & income | (148,748) | 57,706 | 372,027 | 108,529 | 364,244 |
Net client asset outflows | (110,664) | (32,312) | (123,110) | (163,360) | (94,328) |
Balance at end of period | $6,818,390 | $7,077,802 | $7,052,408 | $6,803,491 | $6,858,322 |
Percentage of AUA that are managed assets | 91 % | 91 % | 91 % | 91 % | 91 % |
Mortgage Banking Results | |||||
Mortgage Banking Revenues: | |||||
Realized gains on loan sales, net (1) | $1,575 | $2,493 | $2,492 | $2,205 | $1,586 |
Changes in fair value, net (2) | 133 | (317) | (28) | 20 | 324 |
Loan servicing fee income, net (3) | 596 | 672 | 402 | 536 | 596 |
Total mortgage banking revenues | $2,304 | $2,848 | $2,866 | $2,761 | $2,506 |
Residential Mortgage Loan Originations: | |||||
Originations for retention in portfolio (4) | $27,662 | $15,155 | $26,317 | $26,520 | $24,474 |
Originations for sale to secondary market (5) | 75,519 | 114,137 | 115,117 | 110,728 | 78,098 |
Total mortgage loan originations | $103,181 | $129,292 | $141,434 | $137,248 | $102,572 |
Percentage of originations for sale to total mortgage loan originations | 73 % | 88 % | 81 % | 81 % | 76 % |
Residential Mortgage Loans Sold: | |||||
Sold with servicing rights retained | $16,819 | $62,410 | $17,881 | $24,570 | $24,057 |
Sold with servicing rights released (5) | 58,680 | 50,697 | 102,457 | 85,482 | 48,587 |
Total mortgage loans sold | $75,499 | $113,107 | $120,338 | $110,052 | $72,644 |
(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) | |||||
Mar 31, | Dec 31, | Sep 30, | Jun 30, | Mar 31, | |
Loans: | |||||
Commercial real estate (1) | $2,134,107 | $2,154,504 | $2,102,091 | $2,191,996 | $2,158,518 |
Commercial & industrial | 535,030 | 542,474 | 566,279 | 558,075 | 613,376 |
Total commercial | 2,669,137 | 2,696,978 | 2,668,370 | 2,750,071 | 2,771,894 |
Residential real estate (2) | 2,113,307 | 2,126,171 | 2,529,397 | 2,558,533 | 2,585,524 |
Home equity | 296,563 | 297,119 | 299,379 | 302,027 | 309,302 |
Other | 17,203 | 17,570 | 17,724 | 18,471 | 18,512 |
Total consumer | 313,766 | 314,689 | 317,103 | 320,498 | 327,814 |
Total loans | $5,096,210 | $5,137,838 | $5,514,870 | $5,629,102 | $5,685,232 |
(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. |
March 31, 2025 | December 31, 2024 | ||||
Balance | % of Total | Balance | % of Total | ||
Commercial Real Estate Loans by Property Location: | |||||
Connecticut | $840,620 | 39 % | $839,079 | 39 % | |
Massachusetts | 633,123 | 30 | 663,026 | 31 | |
Rhode Island | 439,382 | 21 | 434,244 | 20 | |
Subtotal | 1,913,125 | 90 | 1,936,349 | 90 | |
All other states | 220,982 | 10 | 218,155 | 10 | |
Total commercial real estate loans | $2,134,107 | 100 % | $2,154,504 | 100 % | |
Residential Real Estate Loans by Property Location: | |||||
Massachusetts | $1,508,640 | 71 % | $1,530,847 | 72 % | |
Rhode Island | 455,372 | 22 | 443,237 | 21 | |
Connecticut | 126,336 | 6 | 128,933 | 6 | |
Subtotal | 2,090,348 | 99 | 2,103,017 | 99 | |
All other states | 22,959 | 1 | 23,154 | 1 | |
Total residential real estate loans | $2,113,307 | 100 % | $2,126,171 | 100 % | |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||
END OF PERIOD LOAN COMPOSITION | |||||
(Unaudited; Dollars in thousands) | |||||
March 31, 2025 | December 31, 2024 | ||||
Balance | % of Total | Balance | % of Total | ||
Commercial Real Estate Portfolio Segmentation: | |||||
Multi-family | $580,191 | 27 % | $567,243 | 26 % | |
Retail | 422,039 | 20 | 433,146 | 20 | |
Industrial and warehouse | 361,910 | 17 | 358,425 | 17 | |
Office | 275,787 | 13 | 289,853 | 13 | |
Hospitality | 221,921 | 10 | 213,585 | 10 | |
Healthcare Facility | 191,546 | 9 | 205,858 | 10 | |
Mixed-use | 22,281 | 1 | 29,023 | 1 | |
Other | 58,432 | 3 | 57,371 | 3 | |
Total commercial real estate loans | $2,134,107 | 100 % | $2,154,504 | 100 % | |
Commercial & Industrial Portfolio Segmentation: | |||||
Healthcare and social assistance | $120,963 | 23 % | $126,547 | 23 % | |
Real estate rental and leasing | 61,208 | 11 | 63,992 | 12 | |
Transportation and warehousing | 53,849 | 10 | 55,784 | 10 | |
Retail trade | 52,928 | 10 | 41,132 | 8 | |
Educational services | 49,432 | 9 | 47,092 | 9 | |
Manufacturing | 22,741 | 4 | 32,140 | 6 | |
Information | 22,088 | 4 | 22,265 | 4 | |
Finance and insurance | 19,735 | 4 | 26,557 | 5 | |
Arts, entertainment, and recreation | 19,600 | 4 | 19,861 | 4 | |
Accommodation and food services | 14,958 | 3 | 12,368 | 2 | |
Professional, scientific, and technical services | 11,043 | 2 | 10,845 | 2 | |
Public administration | 2,152 | — | 2,186 | — | |
Other | 84,333 | 16 | 81,705 | 15 | |
Total commercial & industrial loans | $535,030 | 100 % | $542,474 | 100 % | |
Weighted Average | Asset Quality | |||||||||
Balance | Average Loan Size (4) | Loan to | Debt Service | Pass | Special | Classified | Nonaccrual | |||
Non-Owner Occupied Commercial Real | ||||||||||
Class A | $102,953 | $9,436 | 58 % | 1.76x | $96,714 | $— | $6,239 | $— | ||
Class B | 76,848 | 4,072 | 57 % | 1.53x | 69,243 | — | 7,605 | 7,605 | ||
Class C | 14,887 | 1,861 | 54 % | 1.57x | 12,670 | 2,217 | — | — | ||
Medical Office | 53,334 | 7,619 | 69 % | 1.39x | 53,334 | — | — | — | ||
Lab Space | 27,765 | 23,473 | 91 % | 0.81x | — | 6,319 | 21,446 | — | ||
Total office at March 31, 2025 (1) | $275,787 | $6,305 | 65 % | 1.48x | $231,961 | $8,536 | $35,290 | $7,605 | ||
Total office at December 31, 2024 | $289,853 | $6,566 | 65 % | 1.51x | $244,223 | $8,353 | $37,277 | $10,053 | ||
Total office linked quarter change | ($14,066) | ($261) | — % | (0.03x) | ($12,262) | $183 | ($1,987) | ($2,448) | ||
(1) | Approximately 67% of the total commercial real estate office balance of $276 million is secured by income producing properties located in suburban areas. Additionally, approximately 50% of the total commercial real estate office balance is scheduled to mature before March 31, 2027. |
(2) | Balance of commercial real estate office consists of 47 loans as of March 31, 2025. |
(3) | Does not include $20.5 million of unfunded commitments as of March 31, 2025. |
(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) | |||||
Mar 31, | Dec 31, | Sep 30, | Jun 30, | Mar 31, | |
Deposits: | |||||
Noninterest-bearing demand deposits | $625,590 | $661,776 | $665,706 | $645,661 | $648,929 |
Interest-bearing demand deposits (in-market) | 654,599 | 592,904 | 596,319 | 532,316 | 536,923 |
NOW accounts | 686,666 | 692,812 | 685,531 | 722,797 | 735,617 |
Money market accounts | 1,202,703 | 1,154,745 | 1,146,426 | 1,086,088 | 1,111,510 |
Savings accounts | 630,413 | 523,915 | 490,285 | 485,208 | 484,678 |
Time deposits (in-market) (1) | 1,213,382 | 1,192,110 | 1,207,626 | 1,164,839 | 1,156,516 |
In-market deposits | 5,013,353 | 4,818,262 | 4,791,893 | 4,636,909 | 4,674,173 |
Wholesale brokered time deposits | 27,228 | 297,538 | 379,997 | 339,217 | 673,720 |
Total deposits | $5,040,581 | $5,115,800 | $5,171,890 | $4,976,126 | $5,347,893 |
(1) | As of March 31, 2025, in-market deposits were approximately 60% retail and 40% commercial and the average size was approximately $38 thousand. |
March 31, 2025 | December 31, 2024 | ||||
Balance | % of Total | Balance | % of Total | ||
Uninsured Deposits: | |||||
Uninsured deposits (1) | $1,378,312 | 27 % | $1,363,689 | 27 % | |
Less: affiliate deposits (2) | 96,644 | 2 | 94,740 | 2 | |
Uninsured deposits, excluding affiliate deposits | 1,281,668 | 25 | 1,268,949 | 25 | |
Less: fully-collateralized preferred deposits (3) | 195,771 | 3 | 197,638 | 4 | |
Uninsured deposits, after exclusions | $1,085,897 | 22 % | $1,071,311 | 21 % | |
(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. |
Mar 31, | Dec 31, | |
Contingent Liquidity: | ||
Federal Home Loan Bank of Boston | $1,047,209 | $752,951 |
Federal Reserve Bank of Boston | 113,746 | 70,286 |
Available cash liquidity (1) | 43,350 | 36,647 |
Unencumbered securities | 548,483 | 597,771 |
Total | $1,752,788 | $1,457,655 |
Percentage of total contingent liquidity to uninsured deposits | 127.2 % | 106.9 % |
Percentage of total contingent liquidity to uninsured deposits, after exclusions | 161.4 % | 136.1 % |
(1) | Available cash liquidity excludes amounts restricted for collateral purposes and designated for operating needs. |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||
CREDIT & ASSET QUALITY DATA | |||||
(Unaudited; Dollars in thousands) | |||||
Mar 31, | Dec 31, | Sep 30, | Jun 30, | Mar 31, | |
Asset Quality Ratios: | |||||
Nonperforming assets to total assets | 0.33 % | 0.34 % | 0.44 % | 0.43 % | 0.43 % |
Nonaccrual loans to total loans | 0.42 % | 0.45 % | 0.56 % | 0.54 % | 0.54 % |
Total past due loans to total loans | 0.20 % | 0.23 % | 0.37 % | 0.21 % | 0.18 % |
Allowance for credit losses on loans to nonaccrual loans | 189.85 % | 180.03 % | 136.89 % | 139.04 % | 136.45 % |
Allowance for credit losses on loans to total loans | 0.81 % | 0.82 % | 0.77 % | 0.75 % | 0.74 % |
Nonperforming Assets: | |||||
Commercial real estate | $7,605 | $10,053 | $18,259 | $18,390 | $18,729 |
Commercial & industrial | 1,140 | 515 | 616 | 642 | 668 |
Total commercial | 8,745 | 10,568 | 18,875 | 19,032 | 19,397 |
Residential real estate | 11,102 | 10,767 | 10,517 | 9,744 | 9,722 |
Home equity | 1,779 | 1,972 | 1,750 | 1,703 | 1,591 |
Other consumer | — | — | — | — | — |
Total consumer | 1,779 | 1,972 | 1,750 | 1,703 | 1,591 |
Total nonaccrual loans | 21,626 | 23,307 | 31,142 | 30,479 | 30,710 |
Other real estate owned | — | — | — | 683 | 683 |
Total nonperforming assets | $21,626 | $23,307 | $31,142 | $31,162 | $31,393 |
Past Due Loans (30 days or more past due): | |||||
Commercial real estate | $— | $— | $10,476 | $— | $— |
Commercial & industrial | 1,146 | 900 | 3 | 2 | 270 |
Total commercial | 1,146 | 900 | 10,479 | 2 | 270 |
Residential real estate | 6,439 | 7,741 | 6,947 | 8,534 | 6,858 |
Home equity | 2,578 | 2,947 | 2,800 | 3,324 | 2,879 |
Other consumer | 32 | 394 | 75 | 20 | 32 |
Total consumer | 2,610 | 3,341 | 2,875 | 3,344 | 2,911 |
Total past due loans | $10,195 | $11,982 | $20,301 | $11,880 | $10,039 |
Accruing loans 90 days or more past due | $— | $— | $— | $— | $— |
Nonaccrual loans included in past due loans | $7,534 | $6,447 | $18,119 | $8,409 | $5,111 |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||
CREDIT & ASSET QUALITY DATA | |||||
(Unaudited; Dollars in thousands) | |||||
For the Three Months Ended | |||||
Mar 31, | Dec 31, | Sep 30, | Jun 30, | Mar 31, | |
Nonaccrual Loan Activity: | |||||
Balance at beginning of period | $23,307 | $31,142 | $30,479 | $30,710 | $44,618 |
Additions to nonaccrual status | 2,142 | 5,417 | 1,880 | 556 | 431 |
Loans returned to accruing status | (4) | (9) | (268) | (369) | (13,764) |
Loans charged-off | (2,522) | (2,231) | (59) | (53) | (70) |
Loans transferred to other real estate owned | — | — | — | — | — |
Payments, payoffs, and other changes | (1,297) | (11,012) | (890) | (365) | (505) |
Balance at end of period | $21,626 | $23,307 | $31,142 | $30,479 | $30,710 |
Allowance for Credit Losses on Loans: | |||||
Balance at beginning of period | $41,960 | $42,630 | $42,378 | $41,905 | $41,057 |
Provision for credit losses on loans (1) | 1,400 | 1,200 | 300 | 500 | 900 |
Charge-offs | (2,522) | (2,231) | (59) | (53) | (70) |
Recoveries | 218 | 361 | 11 | 26 | 18 |
Balance at end of period | $41,056 | $41,960 | $42,630 | $42,378 | $41,905 |
Allowance for Credit Losses on Unfunded Commitments: | |||||
Balance at beginning of period | $1,440 | $1,640 | $1,740 | $1,740 | $1,940 |
Provision for credit losses on unfunded commitments (1) | (200) | (200) | (100) | — | (200) |
Balance at end of period (2) | $1,240 | $1,440 | $1,640 | $1,740 | $1,740 |
(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 | |||||
Mar 31, | Dec 31, | Sep 30, | Jun 30, | Mar 31, | |
Net Loan Charge-Offs (Recoveries): | |||||
Commercial real estate | $2,250 | $1,961 | $— | $— | $— |
Commercial & industrial | 3 | 181 | 2 | 4 | (1) |
Total commercial | 2,253 | 2,142 | 2 | 4 | (1) |
Residential real estate | — | (160) | — | — | — |
Home equity | (1) | (189) | (1) | (6) | (1) |
Other consumer | 52 | 77 | 47 | 29 | 54 |
Total consumer | 51 | (112) | 46 | 23 | 53 |
Total | $2,304 | $1,870 | $48 | $27 | $52 |
Net charge-offs to average loans - annualized | 0.18 % | 0.14 % | — % | — % | — % |
The following table presents daily average balance, interest, and yield/rate information, as well as net interest margin on an FTE basis. Tax-exempt income is converted to an 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, changes in fair value on mortgage loans held for sale, and basis adjustments associated with fair value hedges 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 | March 31, 2025 | December 31, 2024 | Change | ||||||||
Average | Interest | Yield/ Rate | Average | Interest | Yield/ Rate | Average | Interest | Yield/ Rate | |||
Assets: | |||||||||||
Cash, federal funds sold, and short-term | $185,724 | $1,993 | 4.35 % | $110,327 | $1,310 | 4.72 % | $75,397 | $683 | (0.37 %) | ||
Mortgage loans held for sale | 105,253 | 958 | 3.69 | 75,731 | 762 | 4.00 | 29,522 | 196 | (0.31) | ||
Taxable debt securities | 1,042,687 | 8,827 | 3.43 | 1,087,076 | 7,016 | 2.57 | (44,389) | 1,811 | 0.86 | ||
Nontaxable debt securities | 650 | 8 | 4.99 | 650 | 8 | 4.90 | — | — | 0.09 | ||
Total securities | 1,043,337 | 8,835 | 3.43 | 1,087,726 | 7,024 | 2.57 | (44,389) | 1,811 | 0.86 | ||
FHLB stock | 43,491 | 1,022 | 9.53 | 52,508 | 1,312 | 9.94 | (9,017) | (290) | (0.41) | ||
Commercial real estate | 2,138,301 | 30,354 | 5.76 | 2,130,040 | 31,878 | 5.95 | 8,261 | (1,524) | (0.19) | ||
Commercial & industrial | 538,083 | 7,874 | 5.93 | 548,871 | 8,528 | 6.18 | (10,788) | (654) | (0.25) | ||
Total commercial | 2,676,384 | 38,228 | 5.79 | 2,678,911 | 40,406 | 6.00 | (2,527) | (2,178) | (0.21) | ||
Residential real estate | 2,120,452 | 23,354 | 4.47 | 2,446,905 | 25,681 | 4.18 | (326,453) | (2,327) | 0.29 | ||
Home equity | 296,735 | 5,061 | 6.92 | 295,879 | 5,366 | 7.21 | 856 | (305) | (0.29) | ||
Other | 17,349 | 217 | 5.07 | 17,534 | 217 | 4.92 | (185) | — | 0.15 | ||
Total consumer | 314,084 | 5,278 | 6.82 | 313,413 | 5,583 | 7.09 | 671 | (305) | (0.27) | ||
Total loans | 5,110,920 | 66,860 | 5.31 | 5,439,229 | 71,670 | 5.24 | (328,309) | (4,810) | 0.07 | ||
Total interest-earning assets | 6,488,725 | 79,668 | 4.98 | 6,765,521 | 82,078 | 4.83 | (276,796) | (2,410) | 0.15 | ||
Noninterest-earning assets | 276,332 | 246,318 | 30,014 | ||||||||
Total assets | $6,765,057 | $7,011,839 | ($246,782) | ||||||||
Liabilities and Shareholders' Equity: | |||||||||||
Interest-bearing demand deposits (in- | $628,490 | $5,876 | 3.79 % | $602,737 | $6,098 | 4.02 % | $25,753 | ($222) | (0.23 %) | ||
NOW accounts | 679,138 | 343 | 0.20 | 680,763 | 404 | 0.24 | (1,625) | (61) | (0.04) | ||
Money market accounts | 1,232,042 | 10,028 | 3.30 | 1,160,962 | 10,139 | 3.47 | 71,080 | (111) | (0.17) | ||
Savings accounts | 564,002 | 1,851 | 1.33 | 502,910 | 1,164 | 0.92 | 61,092 | 687 | 0.41 | ||
Time deposits (in-market) | 1,204,779 | 11,304 | 3.81 | 1,193,733 | 11,840 | 3.95 | 11,046 | (536) | (0.14) | ||
Interest-bearing in-market deposits | 4,308,451 | 29,402 | 2.77 | 4,141,105 | 29,645 | 2.85 | 167,346 | (243) | (0.08) | ||
Wholesale brokered time deposits | 188,386 | 2,346 | 5.05 | 345,668 | 4,490 | 5.17 | (157,282) | (2,144) | (0.12) | ||
Total interest-bearing deposits | 4,496,837 | 31,748 | 2.86 | 4,486,773 | 34,135 | 3.03 | 10,064 | (2,387) | (0.17) | ||
FHLB advances | 959,889 | 10,946 | 4.62 | 1,188,804 | 14,388 | 4.81 | (228,915) | (3,442) | (0.19) | ||
Junior subordinated debentures | 22,681 | 347 | 6.20 | 22,681 | 380 | 6.67 | — | (33) | (0.47) | ||
Total interest-bearing liabilities | 5,479,407 | 43,041 | 3.19 | 5,698,258 | 48,903 | 3.41 | (218,851) | (5,862) | (0.22) | ||
Noninterest-bearing demand deposits | 620,849 | 668,138 | (47,289) | ||||||||
Other liabilities | 151,753 | 144,344 | 7,409 | ||||||||
Shareholders' equity | 513,048 | 501,099 | 11,949 | ||||||||
Total liabilities and shareholders' equity | $6,765,057 | $7,011,839 | ($246,782) | ||||||||
Net interest income (FTE) | $36,627 | $33,175 | $3,452 | ||||||||
Interest rate spread | 1.79 % | 1.42 % | 0.37 % | ||||||||
Net interest margin | 2.29 % | 1.95 % | 0.34 % | ||||||||
Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency: | |||
For the Three Months Ended | Mar 31, 2025 | Dec 31, 2024 | Change |
Commercial loans | $206 | $234 | ($28) |
Nontaxable debt securities | 1 | 1 | — |
Total | $207 | $235 | ($28) |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||
SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures | |||||
(Unaudited; Dollars in thousands, except per share amounts) | |||||
The following table presents adjusted noninterest income, adjusted noninterest expense, adjusted income before income taxes, adjusted income tax expense, adjusted effective tax rate, adjusted net income, and adjusted net income available to common shareholders: | |||||
For the Three Months Ended | |||||
Mar 31, | Dec 31, | Sep 30, | Jun 30, | Mar 31, | |
Adjusted Noninterest Income: | |||||
Noninterest income (loss), as reported | $22,643 | ($77,892) | $16,272 | $16,660 | $17,163 |
Less adjustments: | |||||
Realized losses on securities, net | — | (31,047) | — | — | — |
Losses on sale of portfolio loans, net | — | (62,888) | — | — | — |
Gain on sale of bank-owned properties, net | 6,994 | — | — | 988 | — |
Litigation settlement income | — | — | — | — | 2,100 |
Total adjustments, pre-tax | 6,994 | (93,935) | — | 988 | 2,100 |
Adjusted noninterest income (non-GAAP) | $15,649 | $16,043 | $16,272 | $15,672 | $15,063 |
Adjusted Noninterest Expense: | |||||
Noninterest expense, as reported | $42,196 | $34,292 | $34,504 | $33,910 | $34,363 |
Less adjustments: | |||||
Pension plan settlement charge | 6,436 | — | — | — | — |
Total adjustments, pre-tax | 6,436 | — | — | — | — |
Adjusted noninterest expense (non-GAAP) | $35,760 | $34,292 | $34,504 | $33,910 | $34,363 |
Adjusted Income Before Income Taxes: | |||||
Income (loss) before income taxes | $15,669 | ($80,248) | $13,830 | $13,835 | $13,765 |
Less: total adjustments, pre-tax | 558 | (93,935) | — | 988 | 2,100 |
Adjusted income before income taxes (non-GAAP) | $15,111 | $13,687 | $13,830 | $12,847 | $11,665 |
Adjusted Income Tax Expense: | |||||
Income tax expense (benefit), as reported | $3,490 | ($19,457) | $2,849 | $3,020 | $2,829 |
Less: tax on total adjustments | 141 | (22,699) | — | 249 | 530 |
Adjusted income tax expense (non-GAAP) | $3,349 | $3,242 | $2,849 | $2,771 | $2,299 |
Adjusted Effective Tax Rate: | |||||
Effective tax rate (1) | 22.3 % | 24.2 % | 20.6 % | 21.8 % | 20.6 % |
Less: impact of total adjustments | 0.1 | 0.5 | — | 0.2 | 0.9 |
Adjusted effective tax rate (non-GAAP) (2) | 22.2 % | 23.7 % | 20.6 % | 21.6 % | 19.7 % |
Adjusted Net Income: | |||||
Net income (loss), as reported | $12,179 | ($60,791) | $10,981 | $10,815 | $10,936 |
Less: total adjustments, after-tax | 417 | (71,236) | — | 739 | 1,570 |
Adjusted net income (non-GAAP) | $11,762 | $10,445 | $10,981 | $10,076 | $9,366 |
Adjusted Net Income Available to Common Shareholders: | |||||
Net income (loss) available to common shareholders, as reported | $12,179 | ($60,776) | $10,973 | $10,807 | $10,924 |
Less: total adjustments available to common shareholders, after-tax | 417 | (71,221) | — | 738 | 1,568 |
Adjusted net income available to common shareholders (non-GAAP) | $11,762 | $10,445 | $10,973 | $10,069 | $9,356 |
(1) | Calculated as income tax expense (benefit) divided by income (loss) before income taxes. |
(2) | Calculated as income tax expense (benefit), adjusted for the tax impact of the adjustments as outlined in the table above, divided by income (loss) before income taxes, adjusted for the pre-tax impact of the adjustments as outlined in the table above. |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||
SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures (continued) | |||||
(Unaudited; Dollars in thousands, except per share amounts) | |||||
The following table presents adjusted diluted earnings per common share and adjusted efficiency ratio: | |||||
For the Three Months Ended | |||||
Mar 31, | Dec 31, | Sep 30, | Jun 30, | Mar 31, | |
Adjusted Diluted Earnings per Common Share: | |||||
Diluted earnings (loss) per common share, as reported (1) | $0.63 | ($3.46) | $0.64 | $0.63 | $0.64 |
Less: impact of total adjustments | 0.02 | (4.05) | — | 0.04 | 0.09 |
Adjusted diluted earnings per common share (non-GAAP) (2) | $0.61 | $0.59 | $0.64 | $0.59 | $0.55 |
Adjusted Efficiency Ratio: | |||||
Efficiency ratio, as reported (3) | 71.4 % | (76.3 %) | 71.1 % | 70.3 % | 70.4 % |
Less: impact of total adjustments | 2.7 | (146.3) | — | (1.5) | (3.1) |
Adjusted efficiency ratio (non-GAAP) (4) | 68.7 % | 70.0 % | 71.1 % | 71.8 % | 73.5 % |
(1) | Net income (loss) available to common shareholders divided by weighted average diluted common and potential shares outstanding. |
(2) | Net income (loss) available to common shareholders, adjusted for the after-tax impact of adjustments as outlined in the table above, divided by weighted average diluted common and potential shares outstanding. |
(3) | Total noninterest expense as percentage of total revenues (net interest income and noninterest income). |
(4) | Total noninterest expense as percentage of total revenues (net interest income and noninterest income), each adjusted for the pre-tax impact of adjustments as outlined in the table above. |
The following table presents adjusted return on average assets and return on average tangible assets: | |||||
For the Three Months Ended | |||||
Mar 31, | Dec 31, | Sep 30, | Jun 30, | Mar 31, | |
Adjusted Return on Average Assets: | |||||
Net income (loss), as reported | $12,179 | ($60,791) | $10,981 | $10,815 | $10,936 |
Less: total adjustments, after-tax | 417 | (71,236) | — | 739 | 1,570 |
Adjusted net income (non-GAAP) | 11,762 | 10,445 | 10,981 | 10,076 | 9,366 |
Total average assets, as reported | 6,765,057 | 7,011,839 | 7,254,566 | 7,227,478 | 7,231,835 |
Return on average assets (1) | 0.73 % | (3.45 %) | 0.60 % | 0.60 % | 0.61 % |
Adjusted return on average assets (non-GAAP) (2) | 0.71 % | 0.59 % | 0.60 % | 0.56 % | 0.52 % |
Return on Average Tangible Assets: | |||||
Adjusted net income (non-GAAP) | $11,762 | $10,445 | $10,981 | $10,076 | $9,366 |
Total average assets, as reported | 6,765,057 | 7,011,839 | 7,254,566 | 7,227,478 | 7,231,835 |
Less average balances of: | |||||
Goodwill | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 |
Identifiable intangible assets, net | 2,781 | 2,984 | 3,189 | 3,397 | 3,604 |
Total average tangible assets | 6,698,367 | 6,944,946 | 7,187,468 | 7,160,172 | 7,164,322 |
Return on average assets | 0.73 % | (3.45 %) | 0.60 % | 0.60 % | 0.61 % |
Return on average tangible assets (non-GAAP) (3) | 0.71 % | 0.60 % | 0.61 % | 0.57 % | 0.53 % |
(1) | Net income (income) loss divided by total average assets. |
(2) | Net income (loss), adjusted for the after-tax impact of adjustments as outlined in the table above, divided by total average assets. |
(3) | Net income (loss), adjusted for the after-tax impact of adjustments as outlined in the table above, divided by total average tangible assets. |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||
SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures (continued) | |||||
(Unaudited; Dollars in thousands, except per share amounts) | |||||
The following table presents adjusted return on average equity and return on average tangible equity: | |||||
For the Three Months Ended | |||||
Mar 31, | Dec 31, | Sep 30, | Jun 30, | Mar 31, | |
Adjusted Return on Average Equity: | |||||
Net income (loss) available to common shareholders, as reported | $12,179 | ($60,776) | $10,973 | $10,807 | $10,924 |
Less: total adjustments, after-tax | 417 | (71,221) | — | 738 | 1,568 |
Adjusted net income available to common shareholders (non-GAAP) | 11,762 | 10,445 | 10,973 | 10,069 | 9,356 |
Total average equity, as reported | 513,048 | 501,099 | 485,654 | 460,959 | 471,096 |
Return on average equity (1) | 9.63 % | (48.25 %) | 8.99 % | 9.43 % | 9.33 % |
Adjusted return on average equity (non-GAAP) (2) | 9.30 % | 8.29 % | 8.99 % | 8.79 % | 7.99 % |
Return on Average Tangible Equity: | |||||
Adjusted net income available to common shareholders (non-GAAP) | $11,762 | $10,445 | $10,973 | $10,069 | $9,356 |
Total average equity, as reported | 513,048 | 501,099 | 485,654 | 460,959 | 471,096 |
Less average balances of: | |||||
Goodwill | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 |
Identifiable intangible assets, net | 2,781 | 2,984 | 3,189 | 3,397 | 3,604 |
Total average tangible equity (non-GAAP) | 446,358 | 434,206 | 418,556 | 393,653 | 403,583 |
Return on average equity | 9.63 % | (48.25 %) | 8.99 % | 9.43 % | 9.33 % |
Return on average tangible equity (non-GAAP) (3) | 10.69 % | 9.57 % | 10.43 % | 10.29 % | 9.32 % |
(1) | Net income (loss) available to common shareholders divided by total average equity. |
(2) | Net income (loss) available to common shareholders, adjusted for the after-tax impact of adjustments as outlined in the table above, divided by total average equity. |
(3) | Net income (loss) available to common shareholders, adjusted for the after-tax impact of adjustments as outlined in the table above, divided by total average tangible equity. |
Washington Trust Bancorp, Inc. and Subsidiaries | |||||
SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures (continued) | |||||
(Unaudited; Dollars in thousands, except per share amounts) | |||||
The following table presents tangible book value per share and the ratio of tangible equity to tangible assets: | |||||
Mar 31, | Dec 31, | Sep 30, | Jun 30, | Mar 31, | |
Tangible Book Value per Share: | |||||
Total shareholders' equity, as reported | $521,680 | $499,728 | $502,229 | $470,957 | $466,920 |
Less end of period balances of: | |||||
Goodwill | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 |
Identifiable intangible assets, net | 2,682 | 2,885 | 3,089 | 3,295 | 3,503 |
Total tangible shareholders' equity (non-GAAP) | 455,089 | 432,934 | 435,231 | 403,753 | 399,508 |
Shares outstanding, as reported | 19,276 | 19,274 | 17,058 | 17,058 | 17,033 |
Book value per share | $27.06 | $25.93 | $29.44 | $27.61 | $27.41 |
Tangible book value per share (non-GAAP) | $23.61 | $22.46 | $25.51 | $23.67 | $23.45 |
Tangible Equity to Tangible Assets: | |||||
Total tangible shareholders' equity | $455,089 | $432,934 | $435,231 | $403,753 | $399,508 |
Total assets, as reported | 6,586,015 | 6,930,647 | 7,141,571 | 7,184,360 | 7,249,124 |
Less end of period balances of: | |||||
Goodwill | 63,909 | 63,909 | 63,909 | 63,909 | 63,909 |
Identifiable intangible assets, net | 2,682 | 2,885 | 3,089 | 3,295 | 3,503 |
Total tangible assets (non-GAAP) | 6,519,424 | 6,863,853 | 7,074,573 | 7,117,156 | 7,181,712 |
Equity to assets | 7.92 % | 7.21 % | 7.03 % | 6.56 % | 6.44 % |
Tangible equity to tangible assets (non-GAAP) | 6.98 % | 6.31 % | 6.15 % | 5.67 % | 5.56 % |
Category: Earnings
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SOURCE Washington Trust Bancorp, Inc.