WESTERLY, R.I., July 20, 2020 /PRNewswire/ — Washington Trust Bancorp, Inc. (Nasdaq:WASH), parent company of The Washington Trust Company, today announced second quarter 2020 net income of $21.0 million, or $1.21 per diluted share, compared to net income of $11.9 million, or $0.68 per diluted share, reported for the first quarter of 2020.

«Washington Trust reported strong second quarter earnings, a testament to our success at executing a business continuity plan that allowed our employees to safely provide banking services and maintain a high level of personal customer service during the COVID-19 pandemic,» stated Edward O. Handy III, Washington Trust Chairman and Chief Executive Officer.  «We assisted thousands of borrowers, depositors and wealth clients with their financial needs during these uncertain times and our second quarter performance demonstrated how our diversified business model enables us to generate earnings in a challenging environment.  While there is still uncertainty regarding the severity and duration of the COVID-19 pandemic and its related economic effects, we believe that Washington Trust is well-positioned with strong capital and ample sources of liquidity to handle these challenges as we move forward during this unprecedented time.»

As the nation’s oldest community bank, Washington Trust remains steadfast in its commitment to our employees, customers and communities.  The COVID-19 pandemic has caused an unprecedented disruption to the economy and the communities we serve.  Washington Trust has responded by working with our valued customers to assist them in these difficult times by providing loan payment deferrals, participating in the Small Business Administration’s («SBA’s») Paycheck Protection Program («PPP») and providing other accommodations.  Remote working arrangements continue for a significant portion of our workforce.  In July, we reopened our branch lobbies to customer foot traffic while adhering to and promoting social distancing guidelines.

Selected financial highlights for the second quarter of 2020 include:

  • Returns on average equity and average assets for the second quarter were 16.51% and 1.46%, respectively, compared to 9.49% and 0.89%, respectively, in the preceding quarter.
  • The provision for credit losses was $2.2 million in the second quarter, compared to $7.0 million in the preceding quarter.
  • Mortgage banking revenues hit an all-time quarterly high, totaling $14.9 million for the second quarter, up by $8.8 million, or 144%, from the preceding quarter.
  • Residential mortgage loan originations for portfolio or sale amounted to a quarterly record of $426 million in the second quarter of 2020, up by $134 million, or 46%, from the preceding quarter.
  • Total loans amounted to $4.3 billion at June 30, 2020, up by $197 million, or 5%, from the end of the preceding quarter. Total loans were up by $557 million, or 15%, from a year ago.
  • Total in-market deposits (total deposits less out-of-market wholesale brokered deposits) amounted to $3.6 billion, up by $299 million, or 9%, from the end of the preceding quarter, and up by $551 million, or 18%, from a year ago.

Net Interest Income
Net interest income was $30.9 million for the second quarter of 2020, down by $1.7 million, or 5%, from the first quarter of 2020.  The net interest margin was 2.31% for the second quarter, down by 30 basis points from 2.61% reported in the preceding quarter.

Significant linked quarter changes included:

  • Average interest-earning assets increased by $357 million, with increases of $261 million in average loans and $74 million in average cash and short-term investments balances.  The yield on interest-earning assets for the second quarter was 3.18%, down by 58 basis points from the preceding quarter, reflecting the impact of lower market interest rates.
  • Growth in average loans included an increase of $138 million in average balances of PPP loans, which are fully guaranteed by the SBA.  The yield on PPP loans for the second quarter was 2.65%, which included the net amortization of deferred lender processing fees and deferred labor costs associated with the loan originations.
  • Average interest-bearing liabilities increased by $208 million, with increases of $115 million in average wholesale funding balances and $94 million in average in-market deposits.  Wholesale funding balances consist of wholesale brokered time deposits and borrowings from the Federal Home Loan Bank and the Federal Reserve.  The cost of interest-bearing liabilities for the second quarter of 2020 was 1.08%, down by 33 basis points from the preceding quarter, due to lower market interest rates.
  • Average noninterest-bearing demand deposit balances increased by $134 million from the preceding quarter.

Noninterest Income
Noninterest income totaled $26.3 million for the second quarter of 2020, up by $6.4 million, or 32%, from the first quarter of 2020.  Linked quarter changes included:

  • Mortgage banking revenues totaled $14.9 million for the second quarter of 2020, up by $8.8 million, or 144%, from the first quarter of 2020, with increases in both realized and unrealized gains associated with mortgage banking activities. Net realized gains increased on a linked quarter basis due to increases in sales volume and sales yield on loans sold to the secondary market. Mortgage loans sold to the secondary market hit an all-time quarterly high of $305 million in the second quarter of 2020, up by $143 million, or 88%, from the preceding quarter. Net unrealized gains also increased on a linked quarter basis, reflecting growth in the mortgage pipeline and a corresponding increase in the fair value of mortgage loan commitments as of June 30, 2020.
  • Wealth management revenues amounted to $8.6 million for the second quarter of 2020, down by $84 thousand, or 1%, on a linked quarter basis. This included a decrease in asset-based revenues of $199 thousand, or 2%, correlating to the linked quarter decline in the average balance of wealth management assets under administration («AUA»). The decrease in asset-based revenues was partially offset by an increase in transaction-based revenues of $115 thousand, or 34%.
  • Wealth management AUA amounted to $6.1 billion at June 30, 2020, up by $801 million, or 15%, from March 31, 2020. The increase reflected net investment appreciation of $671.6 million and net client asset inflows of $129.5 million in the second quarter of 2020. The average balance of AUA for the second quarter of 2020 decreased by approximately $157 million, or 3%, from the average balance for the preceding quarter.
  • Loan related derivative income was $99 thousand in the second quarter of 2020, down by $2.4 million, or 96%, from the preceding quarter, reflecting a lower volume of commercial borrower interest rate swap transactions.
  • Income from bank-owned life insurance totaled $791 thousand in the second quarter of 2020, up by $227 thousand, or 40%, from the preceding quarter. Included in the second quarter was a $229 thousand non-taxable gain due to the receipt of life insurance proceeds.

Noninterest Expenses
Noninterest expenses totaled $28.5 million for the second quarter of 2020, down by $2.0 million, or 6%, from the first quarter of 2020.  The linked quarter comparison of noninterest expenses was impacted by the following item:

  • In the first quarter of 2020, a contingency reserve of approximately $800 thousand, largely due to a potential loss associated with counterfeit checks drawn on a commercial customer’s account, was included in other noninterest expenses. This matter was resolved in the second quarter of 2020 and resulted in a reduction of $170 thousand from the previously established reserve, which was recognized as a reduction of other noninterest expenses in the second quarter of 2020.

Excluding the impact of the aforementioned item, noninterest expenses for the second quarter of 2020 decreased by approximately$1.0 million, or 3%, from the preceding quarter. Linked quarter changes included:

  • Salaries and employee benefits expense, our largest noninterest expense, amounted to $19.5 million, which was essentially flat compared to preceding quarter. Volume-related increases in mortgage commission expense were essentially offset with higher deferred labor (contra-expense) largely associated with PPP loan originations in the second quarter.
  • Outsourced services expense was down by $216 thousand from the preceding quarter, largely due to lower volume-related third party processing costs associated with customer loan related derivative transactions.
  • FDIC deposit insurance costs were up by $252 thousand from the preceding quarter, largely due to growth in average assets.
  • The remaining decline in noninterest expenses reflects modest decreases across a variety of other noninterest expense categories. These categories included net occupancy, employee travel and entertainment and office supplies, which declined due to remote working conditions. Declines in other expense categories such as advertising and promotion and corporate sponsorships were timing-related.

Income Tax
Income tax expense totaled $5.5 million for the second quarter of 2020, up by $2.4 million from the preceding quarter, largely due to a higher level of pre-tax income.  The effective tax rate for the second quarter of 2020 was 20.9%, unchanged from the preceding quarter.  Based on current federal and applicable state income tax statutes, the Corporation currently expects its full-year 2020 effective tax rate to be approximately 21.0%.

Investment Securities
The securities portfolio totaled $938 million at June 30, 2020, up by $21 million, or 2%, from March 31, 2020, reflecting purchases of U.S. government agency and U.S. government-sponsored debt securities, including mortgage-backed securities.  This increase was partially offset by routine pay-downs on mortgage-backed securities, calls and maturities of debt securities, as well as a temporary decrease in the fair value of available for sale securities.  Second quarter 2020 purchases totaled $132 million, with a weighted average yield of 1.88%.  Securities represented 16% of total assets at both June 30, 2020 and March 31, 2020.

Loans
Total loans stood at $4.3 billion at June 30, 2020, up by $197 million, or 5% from the end of the preceding quarter.  Linked quarter changes included:

  • Commercial loans increased by $210 million, or 9%, from March 31, 2020, with a net increase of $197 million in the commercial and industrial portfolio and a net increase of $13 million in the commercial real estate portfolio. Loan growth was due to the origination of PPP loans. As of June 30, 2020, there were 1,690 PPP loans with a carrying value of $212 million included in the commercial and industrial portfolio.
  • Residential real estate loans decreased by $2 million from March 31, 2020.
  • The consumer loan portfolio decreased by $11 million from the balance at March 31, 2020.

Washington Trust continues to work with and support our customers experiencing financial difficulty due to the COVID-19 pandemic.  Depending on the demonstrated need of the borrower, Washington Trust has provided loan payment deferrals for up to six months.  As of June 30, 2020, we have executed 583 short-term deferments on loan balances of $652 million, which represented 15% of total loan balances as of June 30, 2020.  In accordance with regulatory guidance and GAAP, eligible short-term deferments are not required to be classified as troubled debt restructured loans and will not be reported as past due provided that they are performing in accordance with the modified terms.  See additional discussion under the Asset Quality section below.

Deposits and Borrowings
Total deposits amounted to $4.1 billion at June 30, 2020, up by $395 million, or 11%, from the end of the preceding quarter.  Included in total deposits are out-of-market wholesale brokered time deposits, which increased by $97 million, or 22%, from March 31, 2020.  Excluding wholesale brokered time deposits, in-market deposits at June 30, 2020 were up by $299 million, or 9%, from the end of the preceding quarter, largely due to increases in noninterest-bearing demand deposit balances and NOW account balances.  Growth included PPP loan fundings made into customer accounts at Washington Trust.  These funds are expected to decrease as customers use them for business needs.

Federal Home Loan Bank advances totaled $1.0 billion at June 30, 2020, down by $193 million from March 31, 2020.

In June 2020, Washington Trust began participating in the Federal Reserve’s Paycheck Protection Program Liquidity Facility («PPPLF»), which extends credit to depository institutions with a term of up to two years at a fixed interest rate of 0.35%.  Only PPP loans can be pledged as collateral to access the facility.  As of June 30, 2020, PPPLF borrowings amounted to $39 million.

Asset Quality
Nonperforming assets amounted to $16.0 million at June 30, 2020, down by $1.9 million from the end of the preceding quarter. This decline reflected a $1.9 million decrease in nonaccrual loans, largely in the residential real estate portfolio.  At of June 30, 2020 there were no properties held in OREO.

Total nonaccrual loans amounted to $16.0 million, or 0.37% of total loans, at June 30, 2020, compared to $17.9 million, or 0.44% of total loans, at March 31, 2020.  Total past due loans amounted to $14.7 million, or 0.34% of total loans, at June 30, 2020, compared to $16.5 million, or 0.40% of total loans, at March 31, 2020.  Total troubled debt restructured («TDR») loans amounted to $6.5 million as of June 30, 2020, up by $5.6 million from March 31, 2020 due to 12 short-term deferments on loans that were delinquent before the pandemic and did not qualify for TDR regulatory relief.  Approximately 80% of TDR balances at June 30, 2020 were in the residential and consumer loan portfolios.  Given the continued uncertain impact to the economy of the COVID-19 pandemic, Washington Trust continues to actively monitor asset quality as the potential exists for adverse events to impact asset quality trends.

In the second quarter of 2020, a provision for credit losses of $2.2 million was charged to earnings, compared to a provision for credit losses of $7.0 million in the preceding quarter.  The second quarter of 2020 provision for credit losses reflects management’s assessment of loss exposure, including continued uncertainty regarding the severity and duration of the COVID-19 pandemic and related economic effects.

In the second quarter of 2020, net charge-offs of $308 thousand were recognized, compared to $623 thousand in the preceding quarter.

The allowance for credit losses («ACL») on loans amounted to $41.4 million, or 0.97% of total loans, at June 30, 2020, compared to $39.7 million, or 0.97% of total loans, at March 31, 2020.  The ACL on unfunded commitments, included in other liabilities on the Consolidated Balance Sheets, amounted to $2.2 million at June 30, 2020, compared to $2.0 million at March 31, 2020.

Capital and Dividends
Total shareholders’ equity was $520.2 million at June 30, 2020, up by $11.6 million from March 31, 2020.  This increase included net income of $21.0 million, which was partially offset by $8.9 million in dividend declarations.

Capital levels at June 30, 2020 exceeded the regulatory minimum levels to be considered well capitalized, with a total risk-based capital ratio of 12.78% at June 30, 2020, compared to 12.42% at March 31, 2020.

Book value per share amounted to $30.14 at June 30, 2020, compared to $29.48 at March 31, 2020.

The Board of Directors declared a quarterly dividend of 51 cents per share for the quarter ended June 30, 2020.  The dividend was paid on July 10, 2020 to shareholders of record on July 1, 2020.

Conference Call
Washington Trust will host a conference call to discuss its second quarter results, business highlights and outlook on Tuesday, July 21, 2020 at 8:30 a.m. (Eastern Time).  Individuals may dial in to the call at 1-888-243-4451.  An audio replay of the call will be available, shortly after the conclusion of the call, by dialing 1-877-344-7529 and entering the Replay PIN Number 10146147; the audio replay will be available through August 4, 2020.  Also, a webcast of the call will be posted in the Investor Relations section of Washington Trust’s web site, http://ir.washtrust.com, and will be available through September 30, 2020.

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 web site at http://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 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: the negative impacts and disruptions of the COVID-19 pandemic and measures taken to contain its spread on our employees, customers, business operations, credit quality, financial position, liquidity and results of operations; the length and extent of the economic contraction as a result of the COVID-19 pandemic; continued deterioration in local, regional, national or international economic conditions or conditions affecting the banking or financial services industries, financial capital markets and the customers and communities we serve; changes in consumer behavior due to changing political, business and economic conditions, including increased unemployment, or legislative or regulatory initiatives; volatility in national and international financial markets; reductions in net interest income resulting from interest rate volatility as well as changes in the balance and mix of loans and deposits; reductions in the market value or outflows of wealth management assets under administration; decreases in the value of securities and other assets; reductions in loan demand; changes in loan collectibility, 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, cybersecurity incidents, fraud, natural disasters and future pandemics; reputational risk relating to our participation in the Paycheck Protection Program and other pandemic-related legislative and regulatory initiatives and programs; 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, 2019, 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,

2020

Mar 31,

2020

Dec 31,

2019

Sep 30,

2019

Jun 30,

2019

Assets:

Cash and due from banks

$215,601

$178,678

$132,193

$141,768

$115,904

Short-term investments

7,739

6,591

6,262

4,336

3,910

Mortgage loans held for sale, at fair value

43,997

49,751

27,833

44,657

39,996

Available for sale debt securities, at fair value

938,446

917,392

899,490

887,020

969,168

Federal Home Loan Bank stock, at cost

50,017

53,576

50,853

45,030

49,759

Loans:

Total loans

4,287,641

4,090,396

3,892,999

3,778,106

3,730,339

Less: allowance for credit losses on loans

41,441

39,665

27,014

26,997

27,398

Net loans

4,246,200

4,050,731

3,865,985

3,751,109

3,702,941

Premises and equipment, net

28,067

28,543

28,700

29,293

29,302

Operating lease right-of-use assets

27,022

26,098

26,792

27,500

28,174

Investment in bank-owned life insurance

83,056

83,053

82,490

81,920

81,351

Goodwill

63,909

63,909

63,909

63,909

63,909

Identifiable intangible assets, net

6,759

6,988

7,218

7,448

7,684

Other assets

166,147

155,669

100,934

114,888

97,574

Total assets

$5,876,960

$5,620,979

$5,292,659

$5,198,878

$5,189,672

Liabilities:

Deposits:

Noninterest-bearing deposits

$815,770

$622,893

$609,924

$619,839

$587,326

Interest-bearing deposits

3,285,666

3,083,421

2,888,958

2,966,314

2,917,296

Total deposits

4,101,436

3,706,314

3,498,882

3,586,153

3,504,622

Federal Home Loan Bank advances

1,005,051

1,198,534

1,141,464

956,786

1,060,960

Junior subordinated debentures

22,681

22,681

22,681

22,681

22,681

Operating lease liabilities

29,125

28,184

28,861

29,541

30,210

Other liabilities

198,504

156,669

97,279

105,892

86,994

Total liabilities

5,356,797

5,112,382

4,789,167

4,701,053

4,705,467

Shareholders’ Equity:

Common stock

1,085

1,085

1,085

1,084

1,083

Paid-in capital

123,684

123,167

123,281

121,900

121,115

Retained earnings

399,386

387,243

390,363

383,765

373,873

Accumulated other comprehensive income (loss)

(462)

929

(11,237)

(8,924)

(11,866)

Treasury stock, at cost

(3,530)

(3,827)

Total shareholders’ equity

520,163

508,597

503,492

497,825

484,205

Total liabilities and shareholders’ equity

$5,876,960

$5,620,979

$5,292,659

$5,198,878

$5,189,672

 

Washington Trust Bancorp, Inc. and Subsidiaries

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,

2020

Mar 31,

2020

Dec 31,

2019

Sep 30,

2019

Jun 30,

2019

Jun 30,

2020

Jun 30,

2019

Interest income:

Interest and fees on loans

$36,005

$40,008

$40,079

$41,558

$42,138

$76,013

$83,882

Interest on mortgage loans held for sale

440

285

359

410

288

725

468

Taxable interest on debt securities

5,477

5,834

5,817

6,318

7,006

11,311

14,232

Nontaxable interest on debt securities

1

8

17

Dividends on Federal Home Loan Bank stock

654

640

693

747

720

1,294

1,415

Other interest income

36

349

435

493

399

385

739

Total interest and dividend income

42,612

47,116

47,383

49,527

50,559

89,728

100,753

Interest expense:

Deposits

7,112

8,536

9,144

9,792

9,469

15,648

18,165

Federal Home Loan Bank advances

4,382

5,765

6,015

6,512

6,980

10,147

13,641

Junior subordinated debentures

171

213

230

245

252

384

505

Other interest expense

2

2

Total interest expense

11,667

14,514

15,389

16,549

16,701

26,181

32,311

Net interest income

30,945

32,602

31,994

32,978

33,858

63,547

68,442

Provision for credit losses

2,200

7,036

400

525

9,236

1,175

Net interest income after provision for credit losses

28,745

25,566

31,994

32,578

33,333

54,311

67,267

Noninterest income:

Wealth management revenues

8,605

8,689

8,894

9,153

9,549

17,294

18,801

Mortgage banking revenues

14,851

6,096

3,669

4,840

3,640

20,947

6,286

Card interchange fees

1,031

947

1,100

1,099

1,018

1,978

2,015

Service charges on deposit accounts

517

860

941

939

929

1,377

1,804

Loan related derivative income

99

2,455

1,116

1,407

746

2,554

1,470

Income from bank-owned life insurance

791

564

570

569

566

1,355

1,215

Net realized gains (losses) on securities

27

(80)

(80)

Other income

426

316

301

335

385

742

609

Total noninterest income

26,320

19,927

16,618

18,342

16,753

46,247

32,120

Noninterest expense:

Salaries and employee benefits

19,464

19,468

18,374

18,332

18,436

38,932

36,055

Outsourced services

2,784

3,000

2,752

2,722

2,518

5,784

5,124

Net occupancy

1,909

2,019

1,986

1,933

1,904

3,928

3,902

Equipment

895

977

996

1,046

1,028

1,872

2,039

Legal, audit and professional fees

659

822

692

645

664

1,481

1,198

FDIC deposit insurance costs

674

422

109

(460)

540

1,096

969

Advertising and promotion

186

259

402

368

525

445

764

Amortization of intangibles

230

230

229

236

239

460

478

Other expenses

1,677

3,256

3,215

2,048

2,297

4,933

4,586

Total noninterest expense

28,478

30,453

28,755

26,870

28,151

58,931

55,115

Income before income taxes

26,587

15,040

19,857

24,050

21,935

41,627

44,272

Income tax expense

5,547

3,139

4,321

5,236

4,662

8,686

9,504

Net income

$21,040

$11,901

$15,536

$18,814

$17,273

$32,941

$34,768

Net income available to common shareholders

$21,000

$11,869

$15,502

$18,778

$17,238

$32,869

$34,699

Weighted average common shares outstanding:

  Basic

17,257

17,345

17,351

17,338

17,330

17,301

17,317

  Diluted

17,292

17,441

17,436

17,414

17,405

17,377

17,403

Earnings per common share:

  Basic

$1.22

$0.68

$0.89

$1.08

$0.99

$1.90

$2.00

  Diluted

$1.21

$0.68

$0.89

$1.08

$0.99

$1.89

$1.99

Cash dividends declared per share

$0.51

$0.51

$0.51

$0.51

$0.51

$1.02

$0.98

 

Washington Trust Bancorp, Inc. and Subsidiaries

SELECTED FINANCIAL HIGHLIGHTS

(Unaudited; Dollars and shares in thousands, except per share amounts)

Jun 30,
2020

Mar 31,
2020

Dec 31,
2019

Sep 30,
2019

Jun 30,
2019

Share and Equity Related Data:

Book value per share

$30.14

$29.48

$29.00

$28.71

$27.93

Tangible book value per share – Non-GAAP (1)

$26.04

$25.37

$24.90

$24.60

$23.80

Market value per share

$32.75

$36.56

$53.79

$48.31

$52.18

Shares issued at end of period

17,363

17,363

17,363

17,338

17,336

Shares outstanding at end of period

17,260

17,252

17,363

17,338

17,336

Capital Ratios (2):

Tier 1 risk-based capital

11.95

%

11.62

%

12.23

%

12.21

%

12.06

%

Total risk-based capital

12.78

%

12.42

%

12.94

%

12.94

%

12.80

%

Tier 1 leverage ratio

8.42

%

8.77

%

9.04

%

8.97

%

8.76

%

Common equity tier 1

11.40

%

11.08

%

11.65

%

11.62

%

11.46

%

Balance Sheet Ratios:

Equity to assets

8.85

%

9.05

%

9.51

%

9.58

%

9.33

%

Tangible equity to tangible assets – Non-GAAP (1)

7.74

%

7.89

%

8.28

%

8.32

%

8.06

%

Loans to deposits (3)

104.6

%

110.6

%

111.3

%

105.8

%

106.8

%

For the Six Months
Ended

For the Three Months Ended

Jun 30,

2020

Mar 31,

2020

Dec 31,

2019

Sep 30,

2019

Jun 30,

2019

Jun 30,

2020

Jun 30,

2019

Performance Ratios (4):

Net interest margin (5)

2.31

%

2.61

%

2.61

%

2.72

%

2.81

%

2.46

%

2.87

%

Return on average assets (net income divided by average assets)

1.46

%

0.89

%

1.18

%

1.44

%

1.34

%

1.18

%

1.37

%

Return on average tangible assets – Non-GAAP (1)

1.48

%

0.90

%

1.20

%

1.46

%

1.36

%

1.20

%

1.39

%

Return on average equity (net income available for common shareholders divided by average equity)

16.51

%

9.49

%

12.24

%

15.20

%

14.58

%

13.03

%

15.04

%

Return on average tangible equity – Non-GAAP (1)

19.15

%

11.05

%

14.26

%

17.79

%

17.17

%

15.14

%

17.78

%

Efficiency ratio (6)

49.7

%

58.0

%

59.2

%

52.4

%

55.6

%

53.7

%

54.8

%

(1)

See the section labeled «SUPPLEMENTAL INFORMATION – Calculation of Non-GAAP Financial Measures» at the end of this document.

(2)

Estimated for June 30, 2020 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,

2020

Mar 31,

2020

Dec 31,

2019

Sep 30,

2019

Jun 30,

2019

Jun 30,

2020

Jun 30,

2019

Wealth Management Results

Wealth Management Revenues:

Asset-based revenues

$8,156

$8,355

$8,731

$9,013

$9,141

$16,511

$18,062

Transaction-based revenues

449

334

163

140

408

783

739

Total wealth management revenues

$8,605

$8,689

$8,894

$9,153

$9,549

$17,294

$18,801

Assets Under Administration (AUA):

Balance at beginning of period

$5,337,733

$6,235,801

$6,126,327

$6,478,890

$6,350,128

$6,235,801

$5,910,814

Net investment appreciation (depreciation) & income

671,602

(772,735)

310,766

66,514

222,489

(101,133)

742,546

Net client asset inflows (outflows)

129,510

(125,333)

(243,175)

(419,077)

(93,727)

4,177

(174,470)

Other (1)

41,883

Balance at end of period

$6,138,845

$5,337,733

$6,235,801

$6,126,327

$6,478,890

$6,138,845

$6,478,890

Percentage of AUA that are managed assets

90%

89%

90%

90%

91%

90%

91%

Mortgage Banking Results

Mortgage Banking Revenues:

Realized gains on loan sales, net (2)

$10,646

$3,688

$4,608

$4,509

$2,924

$14,334

$4,861

Unrealized gains (losses), net (3)

4,415

2,325

(1,025)

243

599

6,740

1,136

Loan servicing fee income, net (4)

(210)

83

86

88

117

(127)

289

Total mortgage banking revenues

$14,851

$6,096

$3,669

$4,840

$3,640

$20,947

$6,286

Residential Mortgage Loan Originations:

Originations for retention in portfolio

$126,894

$108,498

$120,882

$105,075

$69,736

$235,392

$121,433

Originations for sale to secondary market (5)

299,321

183,222

160,175

189,979

162,123

482,543

247,949

Total mortgage loan originations

$426,215

$291,720

$281,057

$295,054

$231,859

$717,935

$369,382

Residential Mortgage Loans Sold:

Sold with servicing rights retained

$246,945

$44,498

$42,612

$25,766

$18,292

$291,443

$27,782

Sold with servicing rights released (5)

58,279

117,693

134,091

159,210

119,122

175,972

201,711

Total mortgage loans sold

$305,224

$162,191

$176,703

$184,976

$137,414

$467,415

$229,493

(1)

Represents the classification of certain non-fee generating assets as AUA due to a reporting change in the fourth quarter of 2019.

(2)

Includes gains on loan sales, commission income on loans originated for others, servicing right gains, and gains (losses) on forward loan commitments.

(3)

Represents fair value adjustments on mortgage loans held for sale and forward loan commitments.

(4)

Represents loan servicing fee income, net of servicing right amortization and valuation adjustments.

(5)

Includes brokered loans (loans originated for others).

 

Washington Trust Bancorp, Inc. and Subsidiaries

END OF PERIOD LOAN AND DEPOSIT COMPOSITION

(Unaudited; Dollars in thousands)

Jun 30,

2020

Mar 31,

2020

Dec 31,

2019

Sep 30,

2019

Jun 30,

2019

Loans:

Commercial real estate (1)

$1,630,998

$1,618,020

$1,547,572

$1,517,320

$1,482,836

Commercial & industrial

852,445

655,157

585,289

566,426

583,873

Total commercial

2,483,443

2,273,177

2,132,861

2,083,746

2,066,709

Residential real estate (2)

1,508,223

1,510,472

1,449,090

1,378,518

1,352,113

Home equity

277,632

287,134

290,874

294,250

288,078

Other

18,343

19,613

20,174

21,592

23,439

Total consumer

295,975

306,747

311,048

315,842

311,517

Total loans

$4,287,641

$4,090,396

$3,892,999

$3,778,106

$3,730,339

(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, 2020

Outstanding Balance

Deferments

Count

Balance

% of Total

Count

Balance

% of
Outstanding
Balance

Commercial Real Estate Portfolio Segmentation:

Multi-family dwelling

141

$526,009

32

%

20

$34,318

7

%

Retail

133

327,139

20

43

124,071

38

Office

76

288,671

18

15

74,099

26

Hospitality

40

144,988

9

31

117,665

81

Healthcare

16

120,181

7

5

64,326

54

Industrial and warehouse

26

96,549

6

Commercial mixed use

21

41,892

3

6

3,089

7

Other

44

85,569

5

12

29,838

35

Total commercial real estate loans

497

$1,630,998

100

%

132

$447,406

27

%

Commercial & Industrial Portfolio Segmentation:

Healthcare and social assistance

262

$188,725

22

%

6

$15,384

8

%

Manufacturing

152

91,364

11

4

2,505

3

Educational services

59

73,172

9

4

7,329

10

Owner occupied and other real estate

278

71,516

8

21

5,128

7

Retail

206

67,461

8

5

2,693

4

Professional, scientific and technical

270

48,452

6

1

41

Accommodation and food services

278

45,257

5

18

12,252

27

Finance and insurance

106

38,213

4

Entertainment and recreation

94

35,626

4

11

13,045

37

Transportation and warehousing

46

30,208

4

5

1,414

5

Information

34

29,575

3

Public administration

25

23,534

3

1

98

Other

764

109,342

13

24

14,533

13

Total commercial & industrial loans

2,574

$852,445

100

%

100

$74,422

9

%

 

Washington Trust Bancorp, Inc. and Subsidiaries

END OF PERIOD LOAN AND DEPOSIT COMPOSITION

(Unaudited; Dollars in thousands)

June 30, 2020

December 31, 2019

Balance

% of Total

Balance

% of Total

Commercial Real Estate Loans by Property Location:

Connecticut

$639,961

39

%

$616,484

40

%

Massachusetts

492,703

30

458,029

30

Rhode Island

420,197

26

394,929

25

Subtotal

1,552,861

95

1,469,442

95

All other states

78,137

5

78,130

5

Total commercial real estate loans

$1,630,998

100

%

$1,547,572

100

%

Residential Real Estate Loans by Property Location:

Massachusetts

$1,006,616

67

%

$932,726

64

%

Rhode Island

349,143

23

356,392

25

Connecticut

131,856

9

140,574

10

Subtotal

1,487,615

99

1,429,692

99

All other states

20,608

1

19,398

1

Total residential real estate loans

$1,508,223

100

%

$1,449,090

100

%

Jun 30,

2020

Mar 31,

2020

Dec 31,

2019

Sep 30,

2019

Jun 30,

2019

Deposits:

Noninterest-bearing demand deposits

$815,770

$622,893

$609,924

$619,839

$587,326

Interest-bearing demand deposits

158,343

178,391

159,938

152,200

128,355

NOW accounts

617,792

528,650

520,295

478,462

484,615

Money market accounts

834,954

784,893

765,899

749,122

654,719

Savings accounts

417,195

382,509

373,503

362,868

365,069

Time deposits (in-market)

728,801

776,992

784,481

792,941

801,501

In-market deposits

3,572,855

3,274,328

3,214,040

3,155,432

3,021,585

Wholesale brokered time deposits

528,581

431,986

284,842

430,721

483,037

Total deposits

$4,101,436

$3,706,314

$3,498,882

$3,586,153

$3,504,622

 

Washington Trust Bancorp, Inc. and Subsidiaries

CREDIT & ASSET QUALITY DATA

(Unaudited; Dollars in thousands)

Jun 30,

2020

Mar 31,

2020

Dec 31,

2019

Sep 30,

2019

Jun 30,

2019

Asset Quality Ratios:

Nonperforming assets to total assets

0.27

%

0.32

%

0.35

%

0.37

%

0.29

%

Nonaccrual loans to total loans

0.37

%

0.44

%

0.45

%

0.39

%

0.34

%

Total past due loans to total loans

0.34

%

0.40

%

0.40

%

0.38

%

0.48

%

Allowance for credit losses on loans to nonaccrual loans

258.73

%

221.37

%

155.18

%

181.16

%

212.93

%

Allowance for credit losses on loans to total loans

0.97

%

0.97

%

0.69

%

0.71

%

0.73

%

Nonperforming Assets:

Commercial real estate

$431

$450

$603

$684

$926

Commercial & industrial

290

657

Total commercial

431

740

1,260

684

926

Residential real estate

13,850

15,423

14,297

12,531

10,610

Home equity

1,648

1,667

1,763

1,599

1,243

Other consumer

88

88

88

88

88

Total consumer

1,736

1,755

1,851

1,687

1,331

Total nonaccrual loans

16,017

17,918

17,408

14,902

12,867

Other real estate owned

28

1,109

4,142

2,142

Total nonperforming assets

$16,017

$17,946

$18,517

$19,044

$15,009

Past Due Loans (30 days or more past due):

Commercial real estate

$431

$1,275

$1,433

$684

$3,670

Commercial & industrial

3

310

1

1

1

Total commercial

434

1,585

1,434

685

3,671

Residential real estate

12,499

12,293

11,429

11,599

11,237

Home equity

1,633

2,482

2,696

1,973

2,904

Other consumer

106

115

130

99

102

Total consumer

1,739

2,597

2,826

2,072

3,006

Total past due loans

$14,672

$16,475

$15,689

$14,356

$17,914

Accruing loans 90 days or more past due

$—

$—

$—

$—

$—

Nonaccrual loans included in past due loans

$10,553

$11,385

$11,477

$9,797

$8,581

 

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,

2020

Mar 31,

2020

Dec 31,

2019

Sep 30,

2019

Jun 30,

2019

Jun 30,

2020

Jun 30,

2019

Nonaccrual Loan Activity:

Balance at beginning of period

$17,918

$17,408

$14,902

$12,867

$12,365

$17,408

$11,707

Additions to nonaccrual status

237

1,729

2,766

5,672

1,620

1,966

3,544

Loans returned to accruing status

(154)

(393)

(597)

(118)

(547)

(973)

Loans charged-off

(325)

(635)

(132)

(966)

(819)

(960)

(922)

Loans transferred to other real estate owned

(28)

(2,000)

(28)

Payments, payoffs and other changes

(1,659)

(163)

(128)

(74)

(181)

(1,822)

(489)

Balance at end of period

$16,017

$17,918

$17,408

$14,902

$12,867

$16,017

$12,867

Allowance for Credit Losses on Loans:

Balance at beginning of period

$39,665

$27,014

$26,997

$27,398

$27,644

$27,014

$27,072

Adoption of CECL accounting standard (Topic 326)

6,501

6,501

Provision for credit losses on loans (1)

2,084

6,773

400

525

8,857

1,175

Charge-offs

(326)

(635)

(132)

(966)

(819)

(961)

(922)

Recoveries

18

12

149

165

48

30

73

Balance at end of period

$41,441

$39,665

$27,014

$26,997

$27,398

$41,441

$27,398

Allowance for Credit Losses on Unfunded Commitments:

Balance at beginning of period

$2,039

$293

$317

$302

$242

$293

$289

Adoption of CECL accounting standard (Topic 326)

1,483

1,483

Provision for credit losses on unfunded commitments (2)

116

263

(24)

15

60

379

13

Balance at end of period (3)

$2,155

$2,039

$293

$317

$302

$2,155

$302

(1)

Included in provision for credit losses in the Consolidated Statements of Income.

(2)

Included in provision for credit losses in the Consolidated Statements of Income for the three months ended March 31, 2020.  For periods prior to 2020, included in other noninterest expense in the Consolidated Statements of Income.

(3)

Included in other liabilities in the Consolidated Balance Sheets.

 

For the Three Months Ended

For the Six Months Ended

Jun 30,

2020

Mar 31,

2020

Dec 31,

2019

Sep 30,

2019

Jun 30,

2019

Jun 30,

2020

Jun 30,

2019

Net Loan Charge-Offs (Recoveries):

Commercial real estate

$19

$153

($44)

$947

$—

$172

$—

Commercial & industrial

284

290

(15)

(122)

(16)

574

(10)

Total commercial

303

443

(59)

825

(16)

746

(10)

Residential real estate

486

486

Home equity

(5)

172

17

(36)

289

167

337

Other consumer

10

8

25

12

12

18

36

Total consumer

5

180

42

(24)

301

185

373

Total

$308

$623

($17)

$801

$771

$931

$849

Net charge-offs to average loans (annualized)

0.03

%

0.06

%

%

0.08

%

0.08

%

0.04

%

0.05

%

The following table presents average balance and interest rate information.  Tax-exempt income is converted to a fully taxable equivalent 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 fair value adjustments 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, 2020

March 31, 2020

Quarter 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

$187,306

$36

0.08

%

$113,344

$349

1.24

%

$73,962

($313)

(1.16)

%

Mortgage loans held for sale

53,443

440

3.31

31,087

285

3.69

22,356

155

(0.38)

Taxable debt securities

904,792

5,477

2.43

905,293

5,833

2.59

(501)

(356)

(0.16)

FHLB stock

51,967

654

5.06

51,962

640

4.95

5

14

0.11

Commercial real estate

1,635,431

12,580

3.09

1,582,956

16,097

4.09

52,475

(3,517)

(1.00)

Commercial & industrial

791,672

6,739

3.42

607,499

6,556

4.34

184,173

183

(0.92)

Total commercial

2,427,103

19,319

3.20

2,190,455

22,653

4.16

236,648

(3,334)

(0.96)

Residential real estate

1,497,665

14,330

3.85

1,469,282

14,283

3.91

28,383

47

(0.06)

Home equity

282,470

2,382

3.39

285,832

3,101

4.36

(3,362)

(719)

(0.97)

Other

18,956

229

4.86

19,855

249

5.04

(899)

(20)

(0.18)

Total consumer

301,426

2,611

3.48

305,687

3,350

4.41

(4,261)

(739)

(0.93)

Total loans

4,226,194

36,260

3.45

3,965,424

40,286

4.09

260,770

(4,026)

(0.64)

Total interest-earning assets

5,423,702

42,867

3.18

5,067,110

47,393

3.76

356,592

(4,526)

(0.58)

Noninterest-earning assets

365,990

327,838

38,152

Total assets

$5,789,692

$5,394,948

$394,744

Liabilities and Shareholders’ Equity:

Interest-bearing demand deposits

$162,388

$142

0.35

%

$155,416

$500

1.29

%

$6,972

($358)

(0.94)

%

NOW accounts

570,739

84

0.06

505,282

69

0.05

65,457

15

0.01

Money market accounts

821,063

1,370

0.67

795,268

2,092

1.06

25,795

(722)

(0.39)

Savings accounts

403,286

67

0.07

374,374

62

0.07

28,912

5

Time deposits (in-market)

746,750

3,507

1.89

780,355

4,049

2.09

(33,605)

(542)

(0.20)

Total interest-bearing in-market deposits

2,704,226

5,170

0.77

2,610,695

6,772

1.04

93,531

(1,602)

(0.27)

Wholesale brokered time deposits

559,822

1,942

1.40

391,822

1,764

1.81

168,000

178

(0.41)

Total interest-bearing deposits

3,264,048

7,112

0.88

3,002,517

8,536

1.14

261,531

(1,424)

(0.26)

FHLB advances

1,068,034

4,382

1.65

1,123,754

5,765

2.06

(55,720)

(1,383)

(0.41)

Junior subordinated debentures

22,681

171

3.03

22,681

213

3.78

(42)

(0.75)

Other borrowings

2,565

2

0.31

2,565

2

0.31

Total interest-bearing liabilities

4,357,328

11,667

1.08

4,148,952

14,514

1.41

208,376

(2,847)

(0.33)

Noninterest-bearing demand deposits

745,050

610,872

134,178

Other liabilities

175,563

132,000

43,563

Shareholders’ equity

511,751

503,124

8,627

Total liabilities and shareholders’ equity

$5,789,692

$5,394,948

$394,744

Net interest income (FTE)

$31,200

$32,879

($1,679)

Interest rate spread

2.10

%

2.35

%

(0.25)

%

Net interest margin

2.31

%

2.61

%

(0.30)

%

Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:

For the Three Months Ended

Jun 30,
2020

Mar 31,
2020

Quarter
Change

Commercial loans

$254

$278

($24)

Total

$254

$278

($24)

 

Washington Trust Bancorp, Inc. and Subsidiaries

CONSOLIDATED AVERAGE BALANCE SHEETS (FTE Basis)

(Unaudited; Dollars in thousands)

For the Six Months Ended

June 30, 2020

June 30, 2019

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

$150,325

$385

0.52

%

$64,713

$739

2.30

%

$85,612

($354)

(1.78)

%

Mortgage loans for sale

42,265

725

3.45

22,588

468

4.18

19,677

257

(0.73)

Taxable debt securities

905,043

11,311

2.51

998,738

14,232

2.87

(93,695)

(2,921)

(0.36)

Nontaxable debt securities

870

21

4.87

(870)

(21)

(4.87)

Total securities

905,043

11,311

2.51

999,608

14,253

2.88

(94,565)

(2,942)

(0.37)

FHLB stock

51,964

1,294

5.01

48,288

1,415

5.91

3,676

(121)

(0.90)

Commercial mortgages

Construction & development

Commercial real estate

1,609,193

28,677

3.58

1,446,923

34,388

4.79

162,270

(5,711)

(1.21)

Commercial & industrial

699,586

13,294

3.82

612,568

15,026

4.95

87,018

(1,732)

(1.13)

Total commercial

2,308,779

41,971

3.66

2,059,491

49,414

4.84

249,288

(7,443)

(1.18)

Residential real estate

1,483,473

28,613

3.88

1,354,330

27,371

4.08

129,143

1,242

(0.20)

Home equity

284,151

5,483

3.88

281,404

7,142

5.12

2,747

(1,659)

(1.24)

Other

19,406

478

4.95

24,905

609

4.93

(5,499)

(131)

0.02

Total consumer

303,557

5,961

3.95

306,309

7,751

5.10

(2,752)

(1,790)

(1.15)

Total loans

4,095,809

76,545

3.76

3,720,130

84,536

4.58

375,679

(7,991)

(0.82)

Total interest-earning assets

5,245,406

90,260

3.46

4,855,327

101,411

4.21

390,079

(11,151)

(0.75)

Noninterest-earning assets

346,914

278,714

68,200

Total assets

$5,592,320

$5,134,041

$458,279

Liabilities and Shareholders’ Equity:

Interest-bearing demand deposits

$158,902

$642

0.81

%

$147,522

$1,311

1.79

%

$11,380

($669)

(0.98)

%

NOW accounts

538,010

154

0.06

458,563

159

0.07

79,447

(5)

(0.01)

Money market accounts

808,166

3,462

0.86

652,671

3,440

1.06

155,495

22

(0.20)

Savings accounts

388,831

128

0.07

367,826

131

0.07

21,005

(3)

Time deposits (in-market)

763,552

7,556

1.99

793,012

7,719

1.96

(29,460)

(163)

0.03

Total interest-bearing in-market deposits

2,657,461

11,942

0.90

2,419,594

12,760

1.06

237,867

(818)

(0.16)

Wholesale brokered time deposits

475,822

3,706

1.57

490,680

5,405

2.22

(14,858)

(1,699)

(0.65)

Total interest-bearing deposits

3,133,283

15,648

1.00

2,910,274

18,165

1.26

223,009

(2,517)

(0.26)

FHLB advances

1,095,894

10,147

1.86

1,039,037

13,641

2.65

56,857

(3,494)

(0.79)

Junior subordinated debentures

22,681

384

3.40

22,681

505

4.49

(121)

(1.09)

Other borrowings

1,282

2

0.31

1,282

2

0.31

Total interest-bearing liabilities

4,253,140

26,181

1.24

3,971,992

32,311

1.64

281,148

(6,130)

(0.40)

Noninterest-bearing demand deposits

677,961

607,569

70,392

Other liabilities

153,781

89,133

64,648

Shareholders’ equity

507,438

465,347

42,091

Total liabilities and shareholders’ equity

$5,592,320

$5,134,041

$458,279

Net interest income (FTE)

$64,079

$69,100

($5,021)

Interest rate spread

2.22

%

2.57

%

(0.35)

%

Net interest margin

2.46

%

2.87

%

(0.41)

%

Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:

For the Six Months Ended

Jun 30,
2020

Jun 30,
2019

Change

Commercial loans

$532

$654

($122)

Nontaxable debt securities

4

(4)

Total

$532

$658

($126)

 

Washington Trust Bancorp, Inc. and Subsidiaries

SUPPLEMENTAL INFORMATION – Calculation of Non-GAAP Financial Measures

(Unaudited; Dollars in thousands, except per share amounts)

Jun 30,

2020

Mar 31,

2020

Dec 31,

2019

Sep 30,

2019

Jun 30,

2019

Tangible Book Value per Share:

Total shareholders’ equity, as reported

$520,163

$508,597

$503,492

$497,825

$484,205

Less:

Goodwill

63,909

63,909

63,909

63,909

63,909

Identifiable intangible assets, net

6,759

6,988

7,218

7,448

7,684

Total tangible shareholders’ equity

$449,495

$437,700

$432,365

$426,468

$412,612

Shares outstanding, as reported

17,260

17,252

17,363

17,338

17,336

Book value per share – GAAP

$30.14

$29.48

$29.00

$28.71

$27.93

Tangible book value per share – Non-GAAP

$26.04

$25.37

$24.90

$24.60

$23.80

Tangible Equity to Tangible Assets:

Total tangible shareholders’ equity

$449,495

$437,700

$432,365

$426,468

$412,612

Total assets, as reported

$5,876,960

$5,620,979

$5,292,659

$5,198,878

$5,189,672

Less:

Goodwill

63,909

63,909

63,909

63,909

63,909

Identifiable intangible assets, net

6,759

6,988

7,218

7,448

7,684

Total tangible assets

$5,806,292

$5,550,082

$5,221,532

$5,127,521

$5,118,079

Equity to assets – GAAP

8.85

%

9.05

%

9.51

%

9.58

%

9.33

%

Tangible equity to tangible assets – Non-GAAP

7.74

%

7.89

%

8.28

%

8.32

%

8.06

%

For the Three Months Ended

For the Six Months Ended

Jun 30,

2020

Mar 31,

2020

Dec 31,

2019

Sep 30,

2019

Jun 30,

2019

Jun 30,

2020

Jun 30,

2019

Return on Average Tangible Assets:

Net income, as reported

$21,040

$11,901

$15,536

$18,814

$17,273

$32,941

$34,768

Total average assets, as reported

$5,789,692

$5,394,948

$5,227,035

$5,181,016

$5,171,562

$5,592,320

$5,134,041

Less average balances of:

Goodwill

63,909

63,909

63,909

63,909

63,909

63,909

63,909

Identifiable intangible assets, net

6,871

7,100

7,330

7,562

7,800

6,985

7,919

Total average tangible assets

$5,718,912

$5,323,939

$5,155,796

$5,109,545

$5,099,853

$5,521,426

$5,062,213

Return on average assets – GAAP

1.46

%

0.89

%

1.18

%

1.44

%

1.34

%

1.18

%

1.37

%

Return on average tangible assets – Non-GAAP

1.48

%

0.90

%

1.20

%

1.46

%

1.36

%

1.20

%

1.39

%

Return on Average Tangible Equity:

Net income available to common shareholders, as reported

$21,000

$11,869

$15,502

$18,778

$17,238

$32,869

$34,699

Total average equity, as reported

$511,751

$503,124

$502,614

$490,197

$474,353

$507,438

$465,347

Less average balances of:

Goodwill

63,909

63,909

63,909

63,909

63,909

63,909

63,909

Identifiable intangible assets, net

6,871

7,100

7,330

7,562

7,800

6,985

7,919

Total average tangible equity

$440,971

$432,115

$431,375

$418,726

$402,644

$436,544

$393,519

Return on average equity – GAAP

16.51

%

9.49

%

12.24

%

15.20

%

14.58

%

13.03

%

15.04

%

Return on average tangible equity – Non-GAAP

19.15

%

11.05

%

14.26

%

17.79

%

17.17

%

15.14

%

17.78

%

Category: Earnings

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/washington-trust-reports-second-quarter-2020-earnings-301096470.html

SOURCE Washington Trust Bancorp, Inc.