Washington Trust Reports Fourth Quarter and Full-Year 2020 Earnings

Rhea-AI Summary

Washington Trust Bancorp reported a fourth quarter 2020 net income of $18.6 million, or $1.07 per diluted share, up from $18.3 million in Q3 2020. Full-year net income reached $69.8 million for 2020, compared to $69.1 million in 2019. Mortgage banking revenues surged 220% year-over-year to a record $47.4 million. Total loans increased 8% to $4.2 billion, largely driven by PPP loans. However, the return on average equity declined to 13.51% from 14.34% in the previous year, reflecting the challenges of 2020.

Positive

• Mortgage banking revenues increased by 220% year-over-year to a record $47.4 million.
• Fourth quarter net interest income rose to $32.2 million, representing a 2% increase from Q3 2020.
• Total deposits increased by 2% to $4.4 billion in Q4 2020.

Negative

• Return on average equity decreased to 13.51% from 14.34% a year earlier.
• Average interest-earning assets fell by $82 million, impacting overall yield.

WESTERLY, R.I., Jan. 27, 2021 /PRNewswire/ -- Washington Trust Bancorp, Inc. (Nasdaq:WASH), parent company of The Washington Trust Company, today announced fourth quarter 2020 net income of $18.6 million, or $1.07 per diluted share, compared to net income of $18.3 million, or $1.06 per diluted share, reported for the third quarter of 2020.  Net income for the year ended December 31, 2020 totaled $69.8 million, or $4.00 per diluted share, compared to $69.1 million, or $3.96 per diluted share, reported for the prior year.

"Washington Trust reported strong earnings for 2020, a year marked by unprecedented challenges, disruption, and uncertainties," stated Edward O. Handy III, Washington Trust Chairman and Chief Executive Officer.  "Our success was due to the spirit and resilience of our dedicated team of employees, who maintained high service levels and 'business as usual' operations during a major pandemic; the strength and stability of our balance sheet, which continued to provide a diverse stream of earnings during the most volatile of operating environments; and the loyalty and perseverance of our customers, who have trusted us to help them through these difficult times."

Selected financial highlights for the fourth quarter and full-year 2020 include:

• Returns on average equity and average assets for the fourth quarter were 13.96% and 1.28%, respectively, compared to 13.99% and 1.24%, respectively, in the preceding quarter. Full-year returns on average equity and average assets for 2020 were 13.51% and 1.22%, respectively, compared to 14.34% and 1.34%, respectively, in the prior year.
• Mortgage banking revenues amounted to $14.1 million for the fourth quarter and totaled a record $47.4 million for the year. Full-year 2020 mortgage banking revenues were up by $32.6 million, or 220%, from a year ago. The volume of both mortgage originations and sales reached record highs in 2020.
• Wealth management revenues were $9.2 million for the fourth quarter, up by $252 thousand, or 3%, from the preceding quarter. Wealth management assets under administration ("AUA") amounted to a record $6.9 billion at December 31, 2020.
• Total loans amounted to $4.2 billion, up by $303.0 million, or 8%, from a year ago, largely due to origination of Paycheck Protection Program ("PPP") loans in 2020.
• In-market deposits (total deposits less out-of-market wholesale brokered deposits) amounted to $3.8 billion at December 31, 2020, up by $573 million, or 18%, from a year ago.

Net Interest Income
Net interest income was $32.2 million for the fourth quarter of 2020, up by $589 thousand, or 2%, from the third quarter of 2020.  The net interest margin was 2.39% for the fourth quarter, up by 8 basis points from the the preceding quarter.  Both net interest income and the net interest margin benefited from $423 thousand, or 3 basis points, of accelerated net deferred fee amortization associated with PPP loans that were forgiven by the Small Business Association ("SBA") in the fourth quarter of 2020.  Linked quarter changes included:

• Average interest-earning assets decreased by $82 million, largely due to a decrease of $71 million in average loans. The yield on interest-earning assets for the fourth quarter was 2.92%, down by 6 basis points from the preceding quarter, reflecting the impact of lower market interest rates.
• Average interest-bearing liabilities decreased by $90 million, resulting from a decrease of $199 million in average wholesale funding balances, partially offset by an increase of $110 million in average in-market deposits. The cost of interest-bearing liabilities for the fourth quarter of 2020 was 0.67%, down by 18 basis points from the preceding quarter, reflecting the impact of lower market interest rates.

Noninterest Income
Noninterest income totaled $27.7 million for the fourth quarter of 2020, up by $2.3 million, or 9%, from the third quarter of 2020.  Included in other noninterest income for the fourth quarter of 2020 was a gain of $1.4 million associated with the sale of our limited partnership interest in a low-income housing tax credit investment.  Excluding this gain, noninterest income totaled $26.3 million, up by $859 thousand, or 3%, from the third quarter of 2020.  Other linked quarter changes included:

• Mortgage banking revenues totaled $14.1 million for the fourth quarter of 2020, up by $1.7 million, or 14%, from the third quarter of 2020, with a decrease in realized gains offset by an increase in unrealized gains. Net realized gains decreased on a linked quarter basis, reflecting lower sales volume partially offset by a higher sales yield. Mortgage loans sold to the secondary market amounted to $318 million in the fourth quarter of 2020, down by $36 million, or 10%, from the preceding quarter. Net unrealized gains increased on a linked quarter basis, reflecting an increase in the fair value of mortgage loan commitments as of December 31, 2020.
  
  Wealth management revenues amounted to $9.2 million in the fourth quarter of 2020, up by $252 thousand, or 3%, on a linked quarter basis due to an increase in asset-based revenues of $280 thousand, or 3%.
  
  
• Wealth management AUA amounted to $6.9 billion at December 31, 2020, up by $471 million, or 7%, from September 30, 2020.  The increase reflected net investment appreciation of $540 million, partially offset by net client asset outflows of $69 million in the fourth quarter of 2020.  The average balance of AUA for the fourth quarter of 2020 increased by approximately $213 million, or 3%, from the average balance for the preceding quarter.
  
  
• Loan related derivative income totaled $173 thousand in the fourth quarter of 2020, down by $1.1 million from the preceding quarter, reflecting lower volume of commercial borrower interest rate swap transactions.

Noninterest Expense
Noninterest expense totaled $34.1 million for the fourth quarter of 2020, up by $1.8 million, or 5%, from the third quarter of 2020.  Included in noninterest expense for the fourth quarter of 2020 was debt prepayment penalty expense of $1.4 million, resulting from paying off higher-yielding FHLB advances in the fourth quarter of 2020.  Excluding the debt prepayment penalty expense, noninterest expense totaled $32.7 million, up by $352 thousand, or 1%, from the third quarter of 2020.

Salaries and employee benefits expense, our largest noninterest expense, amounted to $22.1 million for the fourth quarter of 2020, up by $183 thousand, or 1%, from the preceding quarter.  The remaining increase in noninterest expense reflects modest changes across a variety of other noninterest expense categories, including outsourced services, legal, audit and professional fees, advertising and promotion and other expenses.

Income Tax
Income tax expense totaled $5.5 million for the fourth quarter of 2020, up by $383 thousand from the preceding quarter, largely due to a higher level of pre-tax income.  The effective tax rate for the fourth quarter of 2020 was 22.9%, compared to 21.9% in the preceding quarter.  Based on current federal and applicable state income statutes, the Corporation currently expects its full-year 2021 effective tax rate to be approximately 22.0%.

Investment Securities
The securities portfolio totaled $895 million at December 31, 2020, down by $19 million, or 2%, from September 30, 2020, due to routine pay-downs on mortgage-backed securities and calls of debt securities.  These decreases were partially offset by purchases of U.S. government agency and U.S. government-sponsored debt securities, including mortgage-backed securities.  Fourth quarter 2020 purchases totaled $142 million, with a weighted average yield of 1.64%.  Securities represented 16% of total assets at both December 31, 2020 and September 30, 2020.

Loans
Total loans amounted to $4.2 billion at December 31, 2020, down by $86 million, or 2%, from the end of the preceding quarter.  Linked quarter changes included:

• Commercial loans decreased by $38 million, or 2%, from September 30, 2020. In the fourth quarter of 2020, payoffs and pay-downs amounted to approximately $105 million and included $18 million of PPP loans that were forgiven by the SBA.
• Residential real estate loans decreased by $39 million, or 3%, from September 30, 2020, reflecting increased payoff and refinancing activity.
• The consumer loan portfolio decreased by $9 million, or 3%, from the balance at September 30, 2020.

Deposits and Borrowings
Total deposits amounted to $4.4 billion at December 31, 2020, up by $93 million, or 2%, from the end of the preceding quarter.  Included in total deposits are out-of-market wholesale brokered time deposits, which increased by $7 million, or 1%, from September 30, 2020.  Excluding wholesale brokered time deposits, in-market deposits at December 31, 2020 were up by $85 million, or 2%, from the end of the preceding quarter.

Federal Home Loan Bank advances totaled $594 million at December 31, 2020, down by $120 million from September 30, 2020.  There were no Paycheck Protection Program Liquidity Facility ("PPPLF") borrowings outstanding at December 31, 2020, compared to $106 million at September 30, 2020.

Asset Quality
Nonperforming assets amounted to $13.2 million at December 31, 2020, down by $1.5 million from the end of the preceding quarter.  Total nonaccrual loans amounted to $13.2 million, or 0.31% of total loans, at December 31, 2020, compared to $14.7 million, or 0.34% of total loans, at September 30, 2020.

Total past due loans amounted to $12.4 million, or 0.30% of total loans, at December 31, 2020, compared to $10.4 million, or 0.24% of total loans, at September 30, 2020.  The $2.0 million increase in past due loans was concentrated in residential real estate loans.

Total troubled debt restructured ("TDR") loans amounted to $15.7 million as of December 31, 2020, up by $7.1 million from September 30, 2020, largely due to restructurings of two commercial and industrial loan relationships that did not qualify for TDR accounting relief.

The allowance for credit losses ("ACL") on loans amounted to $44.1 million, or 1.05% of total loans, at December 31, 2020, compared to $42.6 million, or 1.00% of total loans, at September 30, 2020.  The ACL on unfunded commitments, included in other liabilities on the Consolidated Balance Sheets, amounted to $2.4 million at December 31, 2020 as compared to $2.2 million, at September 30, 2020.

In the fourth quarter of 2020, a provision for credit losses of $1.8 million was charged to earnings, compared to $1.3 million in the preceding quarter.  In the fourth quarter of 2020, net charge-offs of $118 thousand were recognized, compared to $96 thousand in the preceding quarter.

Capital and Dividends
Total shareholders' equity was $534.2 million at December 31, 2020, up by $6.5 million from September 30, 2020.  This increase included net income of $18.6 million, which was partially offset by $9.1 million in dividend declarations and a charge of $3.9 million to the accumulated other comprehensive income component of shareholders' equity associated with the annual remeasurement of pension plan liabilities. This charge was largely due to a decline in the discount rate used to measure the present value of pension plan liabilities as a result of a reduction in market interest rates in 2020.

Capital levels at December 31, 2020 exceeded the regulatory minimum levels to be considered well capitalized, with a total risk-based capital ratio of 13.51% at December 31, 2020, compared to 13.09% at September 30, 2020.

Book value per share amounted to $30.94 at December 31, 2020, compared to $30.57 at September 30, 2020.

The Board of Directors declared a quarterly dividend of 52 cents per share for the quarter ended December 31, 2020, representing an increase of 1 cent per share from the preceding quarter.  The dividend was paid on January 8, 2021 to shareholders of record on January 4, 2021.

Conference Call
Washington Trust will host a conference call to discuss its fourth quarter results, business highlights and outlook on Thursday, January 28, 2021 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 10151312; the audio replay will be available through February 4, 2021.  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 March 31, 2021.

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; the possibility that future credits losses are higher than currently expected due to changes in economic assumptions or adverse economic developments; 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)
	Dec 31, 2020		Sep 30, 2020		Jun 30, 2020		Mar 31, 2020		Dec 31, 2019
Assets:
Cash and due from banks	$194,143		$204,113		$215,601		$178,678		$132,193
Short-term investments	8,125		7,902		7,739		6,591		6,262
Mortgage loans held for sale, at fair value	61,614		68,095		43,997		49,751		27,833
Available for sale debt securities, at fair value	894,571		913,850		938,446		917,392		899,490
Federal Home Loan Bank stock, at cost	30,285		37,469		50,017		53,576		50,853
Loans:
Total loans	4,195,990		4,282,047		4,287,641		4,090,396		3,892,999
Less: allowance for credit losses on loans	44,106		42,645		41,441		39,665		27,014
Net loans	4,151,884		4,239,402		4,246,200		4,050,731		3,865,985
Premises and equipment, net	28,870		27,711		28,067		28,543		28,700
Operating lease right-of-use assets	29,521		29,861		27,022		26,098		26,792
Investment in bank-owned life insurance	84,193		83,623		83,056		83,053		82,490
Goodwill	63,909		63,909		63,909		63,909		63,909
Identifiable intangible assets, net	6,305		6,530		6,759		6,988		7,218
Other assets	159,749		167,327		166,147		155,669		100,934
Total assets	$5,713,169		$5,849,792		$5,876,960		$5,620,979		$5,292,659
Liabilities:
Deposits:
Noninterest-bearing deposits	$832,287		$840,444		$815,770		$622,893		$609,924
Interest-bearing deposits	3,546,066		3,445,249		3,285,666		3,083,421		2,888,958
Total deposits	4,378,353		4,285,693		4,101,436		3,706,314		3,498,882
Federal Home Loan Bank advances	593,859		713,868		1,005,051		1,198,534		1,141,464
Payment Protection Program Lending Facility	—		105,746		38,900		—		—
Junior subordinated debentures	22,681		22,681		22,681		22,681		22,681
Operating lease liabilities	31,717		32,012		29,125		28,184		28,861
Other liabilities	152,364		162,099		159,604		156,669		97,279
Total liabilities	5,178,974		5,322,099		5,356,797		5,112,382		4,789,167
Shareholders' Equity:
Common stock	1,085		1,085		1,085		1,085		1,085
Paid-in capital	125,610		124,768		123,684		123,167		123,281
Retained earnings	418,246		408,773		399,386		387,243		390,363
Accumulated other comprehensive income (loss)	(7,391)		(3,403)		(462)		929		(11,237)
Treasury stock, at cost	(3,355)		(3,530)		(3,530)		(3,827)		—
Total shareholders' equity	534,195		527,693		520,163		508,597		503,492
Total liabilities and shareholders' equity	$5,713,169		$5,849,792		$5,876,960		$5,620,979		$5,292,659

 

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 Twelve Months Ended
	Dec 31, 2020		Sep 30, 2020		Jun 30, 2020		Mar 31, 2020		Dec 31, 2019			Dec 31, 2020		Dec 31, 2019
Interest income:
Interest and fees on loans	$34,487		$34,925		$36,005		$40,008		$40,079			$145,425		$165,519
Interest on mortgage loans held for sale	569		468		440		285		359			1,762		1,237
Taxable interest on debt securities	3,869		4,870		5,477		5,834		5,817			20,050		26,367
Nontaxable interest on debt securities	—		—		—		—		—			—		18
Dividends on Federal Home Loan Bank stock	414		532		654		640		693			2,240		2,855
Other interest income	35		39		36		349		435			459		1,667
Total interest and dividend income	39,374		40,834		42,612		47,116		47,383			169,936		197,663
Interest expense:
Deposits	4,632		5,532		7,112		8,536		9,144			25,812		37,101
Federal Home Loan Bank advances	2,305		3,354		4,382		5,765		6,015			15,806		26,168
Junior subordinated debentures	122		135		171		213		230			641		980
Other interest expense	72		159		2		—		—			233		—
Total interest expense	7,131		9,180		11,667		14,514		15,389			42,492		64,249
Net interest income	32,243		31,654		30,945		32,602		31,994			127,444		133,414
Provision for credit losses	1,781		1,325		2,200		7,036		—			12,342		1,575
Net interest income after provision for credit losses	30,462		30,329		28,745		25,566		31,994			115,102		131,839
Noninterest income:
Wealth management revenues	9,206		8,954		8,605		8,689		8,894			35,454		36,848
Mortgage banking revenues	14,077		12,353		14,851		6,096		3,669			47,377		14,795
Card interchange fees	1,148		1,161		1,031		947		1,100			4,287		4,214
Service charges on deposit accounts	767		598		517		860		941			2,742		3,684
Loan related derivative income	173		1,264		99		2,455		1,116			3,991		3,993
Income from bank-owned life insurance	569		567		791		564		570			2,491		2,354
Net realized gains (losses) on securities	—		—		—		—		27			—		(53)
Other income	1,787		571		426		316		301			3,100		1,245
Total noninterest income	27,727		25,468		26,320		19,927		16,618			99,442		67,080
Noninterest expense:
Salaries and employee benefits	22,075		21,892		19,464		19,468		18,374			82,899		72,761
Outsourced services	2,950		3,160		2,784		3,000		2,752			11,894		10,598
Net occupancy	2,083		2,012		1,909		2,019		1,986			8,023		7,821
Equipment	1,025		934		895		977		996			3,831		4,081
Legal, audit and professional fees	1,014		1,252		659		822		692			3,747		2,535
FDIC deposit insurance costs	330		392		674		422		109			1,818		618
Advertising and promotion	640		384		186		259		402			1,469		1,534
Amortization of intangibles	226		228		230		230		229			914		943
Debt prepayment penalties	1,413		—		—		—		—			1,413		—
Other expenses	2,353		2,090		1,677		3,256		3,215			9,376		9,849
Total noninterest expense	34,109		32,344		28,478		30,453		28,755			125,384		110,740
Income before income taxes	24,080		23,453		26,587		15,040		19,857			89,160		88,179
Income tax expense	5,514		5,131		5,547		3,139		4,321			19,331		19,061
Net income	$18,566		$18,322		$21,040		$11,901		$15,536			$69,829		$69,118
Net income available to common shareholders	$18,524		$18,285		$21,000		$11,869		$15,502			$69,678		$68,979
Weighted average common shares outstanding:
Basic	17,264		17,260		17,257		17,345		17,351			17,282		17,331
Diluted	17,360		17,317		17,292		17,441		17,436			17,402		17,414
Earnings per common share:
Basic	$1.07		$1.06		$1.22		$0.68		$0.89			$4.03		$3.98
Diluted	$1.07		$1.06		$1.21		$0.68		$0.89			$4.00		$3.96
Cash dividends declared per share	$0.52		$0.51		$0.51		$0.51		$0.51			$2.05		$2.00

 

Washington Trust Bancorp, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited; Dollars and shares in thousands, except per share amounts)
	Dec 31, 2020		Sep 30, 2020		Jun 30, 2020		Mar 31, 2020		Dec 31, 2019
Share and Equity Related Data:
Book value per share	$30.94		$30.57		$30.14		$29.48		$29.00
Tangible book value per share - Non-GAAP (1)	$26.87		$26.49		$26.04		$25.37		$24.90
Market value per share	$44.80		$30.66		$32.75		$36.56		$53.79
Shares issued at end of period	17,363		17,363		17,363		17,363		17,363
Shares outstanding at end of period	17,265		17,260		17,260		17,252		17,363
Capital Ratios (2):
Tier 1 risk-based capital	12.61	%	12.23	%	11.95	%	11.62	%	12.23	%
Total risk-based capital	13.51	%	13.09	%	12.78	%	12.42	%	12.94	%
Tier 1 leverage ratio	8.95	%	8.77	%	8.42	%	8.77	%	9.04	%
Common equity tier 1	12.06	%	11.69	%	11.40	%	11.08	%	11.65	%
Balance Sheet Ratios:
Equity to assets	9.35	%	9.02	%	8.85	%	9.05	%	9.51	%
Tangible equity to tangible assets - Non-GAAP (1)	8.22	%	7.91	%	7.74	%	7.89	%	8.28	%
Loans to deposits (3)	96.2	%	100.5	%	104.6	%	110.6	%	111.3	%

 

												For the Twelve Months Ended
	For the Three Months Ended
	Dec 31, 2020		Sep 30, 2020		Jun 30, 2020		Mar 31, 2020		Dec 31, 2019			Dec 31, 2020		Dec 31, 2019
Performance Ratios (4):
Net interest margin (5)	2.39	%	2.31	%	2.31	%	2.61	%	2.61	%		2.40	%	2.77	%
Return on average assets (net income divided by average assets)	1.28	%	1.24	%	1.46	%	0.89	%	1.18	%		1.22	%	1.34	%
Return on average tangible assets - Non-GAAP (1)	1.30	%	1.26	%	1.48	%	0.90	%	1.20	%		1.24	%	1.36	%
Return on average equity (net income available for common shareholders divided by average equity)	13.96	%	13.99	%	16.51	%	9.49	%	12.24	%		13.51	%	14.34	%
Return on average tangible equity - Non-GAAP (1)	16.10	%	16.19	%	19.15	%	11.05	%	14.26	%		15.66	%	16.85	%
Efficiency ratio (6)	56.9	%	56.6	%	49.7	%	58.0	%	59.2	%		55.3	%	55.2	%

(1)	See the section labeled "Supplemental Information - Calculation of Non-GAAP Financial Measures" at the end of this document.
(2)	Estimated for December 31, 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 Twelve Months Ended
	Dec 31, 2020		Sep 30, 2020		Jun 30, 2020		Mar 31, 2020		Dec 31, 2019			Dec 31, 2020		Dec 31, 2019
Wealth Management Results
Wealth Management Revenues:
Asset-based revenues	$9,066		$8,786		$8,156		$8,355		$8,731			$34,363		$35,806
Transaction-based revenues	140		168		449		334		163			1,091		1,042
Total wealth management revenues	$9,206		$8,954		$8,605		$8,689		$8,894			$35,454		$36,848
Assets Under Administration (AUA):
Balance at beginning of period	$6,395,652		$6,138,845		$5,337,733		$6,235,801		$6,126,327			$6,235,801		$5,910,814
Net investment appreciation (depreciation) & income	540,189		335,209		671,602		(772,735)		310,766			774,265		1,119,826
Net client asset inflows (outflows)	(69,104)		(78,402)		129,510		(125,333)		(243,175)			(143,329)		(836,722)
Other (1)	—		—		—		—		41,883			—		41,883
Balance at end of period	$6,866,737		$6,395,652		$6,138,845		$5,337,733		$6,235,801			$6,866,737		$6,235,801
Percentage of AUA that are managed assets	91%		90%		90%		89%		90%			91%		90%
Mortgage Banking Results
Mortgage Banking Revenues:
Realized gains on loan sales, net (2)	$13,394		$14,280		$10,646		$3,688		$4,608			$42,008		$13,978
Unrealized gains (losses), net (3)	813		(1,555)		4,415		2,325		(1,025)			5,998		354
Loan servicing fee income, net (4)	(130)		(372)		(210)		83		86			(629)		463
Total mortgage banking revenues	$14,077		$12,353		$14,851		$6,096		$3,669			$47,377		$14,795
Residential Mortgage Loan Originations:
Originations for retention in portfolio	$134,002		$132,726		$126,894		$108,498		$120,882			$502,120		$347,390
Originations for sale to secondary market (5)	312,226		377,137		299,321		183,222		160,175			1,171,906		598,103
Total mortgage loan originations	$446,228		$509,863		$426,215		$291,720		$281,057			$1,674,026		$945,493
Residential Mortgage Loans Sold:
Sold with servicing rights retained	$240,104		$317,920		$246,945		$44,498		$42,612			$849,467		$96,160
Sold with servicing rights released (5)	78,072		36,250		58,279		117,693		134,091			290,294		495,012
Total mortgage loans sold	$318,176		$354,170		$305,224		$162,191		$176,703			$1,139,761		$591,172

(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 COMPOSITION
(Unaudited; Dollars in thousands)
	Dec 31, 2020		Sep 30, 2020		Jun 30, 2020		Mar 31, 2020		Dec 31, 2019
Loans:
Commercial real estate (1)	$1,633,024		$1,665,745		$1,630,998		$1,618,020		$1,547,572
Commercial & industrial	817,408		822,269		852,445		655,157		585,289
Total commercial	2,450,432		2,488,014		2,483,443		2,273,177		2,132,861
Residential real estate (2)	1,467,312		1,506,726		1,508,223		1,510,472		1,449,090
Home equity	259,185		268,551		277,632		287,134		290,874
Other	19,061		18,756		18,343		19,613		20,174
Total consumer	278,246		287,307		295,975		306,747		311,048
Total loans	$4,195,990		$4,282,047		$4,287,641		$4,090,396		$3,892,999

(1)	Commercial real estate loans consist of commercial mortgages and construction and development loans.  Commercial mortgages are loans secured by income producing property.
(2)	Residential real estate loans consist of mortgage and homeowner construction loans secured by one- to four-family residential properties.

 

	December 31, 2020							December 31, 2019
	Count		Balance		% of Total			Count		Balance		% of Total
Commercial Real Estate Portfolio Segmentation:
Multi-family dwelling	137		$524,874		32	%		123		$430,502		28	%
Retail	136		339,569		21			110		314,661		20
Office	73		290,756		18			78		294,910		19
Hospitality	40		157,720		10			32		128,867		8
Healthcare	15		109,321		7			16		110,409		7
Industrial and warehouse	28		97,055		6			25		82,432		5
Commercial mixed use	22		42,405		2			48		73,895		5
Other	38		71,324		4			70		111,896		8
Commercial real estate loans	489		$1,633,024		100	%		502		$1,547,572		100	%
Commercial & Industrial Portfolio Segmentation:
Healthcare and social assistance	253		$200,217		24	%		86		$138,857		24	%
Manufacturing	146		88,802		11			65		53,561		9
Owner occupied and other real estate	268		74,309		9			157		46,033		8
Educational services	53		64,969		8			22		56,556		10
Retail	192		63,895		8			75		43,386		7
Accommodation and food services	271		47,020		6			64		16,562		3
Professional, scientific and technical	265		39,295		5			66		37,599		6
Entertainment and recreation	91		29,415		4			35		30,807		5
Information	32		28,394		3			11		22,162		4
Finance and insurance	106		26,244		3			57		28,501		5
Transportation and warehousing	42		24,061		3			23		20,960		4
Public administration	26		23,319		3			23		25,107		4
Other	772		107,468		13			225		65,198		11
Commercial & industrial loans	2,517		$817,408		100	%		909		$585,289		100	%

 

Washington Trust Bancorp, Inc. and Subsidiaries
SUPPLEMENTAL LOAN PORTFOLIO INFORMATION
(Unaudited; Dollars in thousands)
	December 31, 2020							January 21, 2021
	Count		Balance		% of Outstanding Balance, excl PPP loans (1)			Count		Balance		% of Outstanding Balance, excl PPP loans (1)
Loan Deferments by Portfolio:
Commercial Real Estate Deferments by Segment:
Hospitality	20		$83,073		53	%		16		$69,529		44	%
Retail	5		39,781		12			3		20,600		6
Healthcare	2		22,305		20			2		22,345		20
Office	2		2,457		1			2		2,457		1
Commercial mixed use	1		637		2			—		—		—
Multi-family dwelling	1		364		—			1		364		—
Other	7		27,785		39			7		27,786		39
Subtotal - commercial real estate deferments	38		176,402		11			31		143,081		9
Commercial & Industrial Deferments by Segment:
Healthcare and social assistance	5		19,620		13			5		19,702		13
Accommodation and food services	2		2,889		12			2		2,889		12
Transportation and warehousing	4		1,120		5			4		1,120		5
Manufacturing	2		947		1			2		947		1
Entertainment and recreation	3		560		2			3		557		2
Owner occupied and other real estate	1		326		1			1		326		1
Other	4		7,673		12			4		7,676		12
Subtotal - commercial & industrial deferments	21		33,135		5			21		33,217		5
Total commercial deferments	59		209,537		9			52		176,298		8
Residential real estate deferments	66		34,049		2			52		26,404		2
Consumer deferments	11		1,110		—			10		715		—
Total loan deferments	136		$244,696		6	%		114		$203,417		5	%

(1)	Percent of respective outstanding portfolio segment balance, excluding PPP loans, as of December 31, 2020.

 

	December 31, 2020
	Count		Balance		% of Total
PPP Loans By Industry:
Healthcare and social assistance	173		$47,354		24	%
Accommodation and food services	209		23,678		12
Manufacturing	89		23,321		12
Professional, scientific and technical	220		20,031		10
Retail	134		12,107		6
Educational services	32		9,681		5
Owner occupied and other real estate	115		9,241		5
Entertainment and recreation	61		3,386		2
Information	20		2,478		1
Transportation and warehousing	21		2,059		1
Finance and insurance	55		2,000		1
Public administration	4		483		—
Other	573		43,961		21
Total PPP loans (included in the commercial & industrial loan portfolio)	1,706		$199,780		100	%
Average PPP loan size			$117
Net unamortized fees on PPP loans			$3,893

 

Washington Trust Bancorp, Inc. and Subsidiaries
END OF PERIOD LOAN AND DEPOSIT COMPOSITION
(Unaudited; Dollars in thousands)
	December 31, 2020					December 31, 2019
	Balance		% of Total			Balance		% of Total
Commercial Real Estate Loans by Property Location:
Connecticut	$649,919		40	%		$616,484		40	%
Massachusetts	468,947		29			458,029		30
Rhode Island	431,133		26			394,929		25
Subtotal	1,549,999		95			1,469,442		95
All other states	83,025		5			78,130		5
Total commercial real estate loans	$1,633,024		100	%		$1,547,572		100	%
Residential Real Estate Loans by Property Location:
Massachusetts	$994,800		68	%		$932,726		64	%
Rhode Island	331,713		23			356,392		25
Connecticut	122,102		8			140,574		10
Subtotal	1,448,615		99			1,429,692		99
All other states	18,697		1			19,398		1
Total residential real estate loans	$1,467,312		100	%		$1,449,090		100	%

 

	Dec 31, 2020		Sep 30, 2020		Jun 30, 2020		Mar 31, 2020		Dec 31, 2019
Deposits:
Noninterest-bearing demand deposits	$832,287		$840,444		$815,770		$622,893		$609,924
Interest-bearing demand deposits	174,290		170,198		158,343		178,391		159,938
NOW accounts	698,706		644,909		617,792		528,650		520,295
Money market accounts	910,167		877,536		834,954		784,893		765,899
Savings accounts	466,507		439,383		417,195		382,509		373,503
Time deposits (in-market)	704,855		729,058		728,801		776,992		784,481
In-market deposits	3,786,812		3,701,528		3,572,855		3,274,328		3,214,040
Wholesale brokered time deposits	591,541		584,165		528,581		431,986		284,842
Total deposits	$4,378,353		$4,285,693		$4,101,436		$3,706,314		$3,498,882

 

Washington Trust Bancorp, Inc. and Subsidiaries
CREDIT & ASSET QUALITY DATA
(Unaudited; Dollars in thousands)
	Dec 31, 2020		Sep 30, 2020		Jun 30, 2020		Mar 31, 2020		Dec 31, 2019
Asset Quality Ratios:
Nonperforming assets to total assets	0.23	%	0.25	%	0.27	%	0.32	%	0.35	%
Nonaccrual loans to total loans	0.31	%	0.34	%	0.37	%	0.44	%	0.45	%
Total past due loans to total loans	0.30	%	0.24	%	0.34	%	0.40	%	0.40	%
Allowance for credit losses on loans to nonaccrual loans	334.21	%	289.31	%	258.73	%	221.37	%	155.18	%
Allowance for credit losses on loans to total loans	1.05	%	1.00	%	0.97	%	0.97	%	0.69	%
Nonperforming Assets:
Commercial real estate	$—		$431		$431		$450		$603
Commercial & industrial	—		—		—		290		657
Total commercial	—		431		431		740		1,260
Residential real estate	11,981		12,792		13,850		15,423		14,297
Home equity	1,128		1,429		1,648		1,667		1,763
Other consumer	88		88		88		88		88
Total consumer	1,216		1,517		1,736		1,755		1,851
Total nonaccrual loans	13,197		14,740		16,017		17,918		17,408
Other real estate owned	—		—		—		28		1,109
Total nonperforming assets	$13,197		$14,740		$16,017		$17,946		$18,517
Past Due Loans (30 days or more past due):
Commercial real estate	$265		$431		$431		$1,275		$1,433
Commercial & industrial	3		21		3		310		1
Total commercial	268		452		434		1,585		1,434
Residential real estate	10,339		8,081		12,499		12,293		11,429
Home equity	1,667		1,753		1,633		2,482		2,696
Other consumer	118		108		106		115		130
Total consumer	1,785		1,861		1,739		2,597		2,826
Total past due loans	$12,392		$10,394		$14,672		$16,475		$15,689
Accruing loans 90 days or more past due	$—		$—		$—		$—		$—
Nonaccrual loans included in past due loans	$8,521		$8,799		$10,553		$11,385		$11,477
Troubled Debt Restructurings:
Accruing TDRs	$13,340		$5,709		$5,473		$373		$376
Nonaccrual TDRs	2,345		2,894		998		490		492
Total TDRs	$15,685		$8,603		$6,471		$863		$868

 

Washington Trust Bancorp, Inc. and Subsidiaries
CREDIT & ASSET QUALITY DATA
(Unaudited; Dollars in thousands)
	For the Three Months Ended											For the Twelve Months Ended
	Dec 31, 2020		Sep 30, 2020		Jun 30, 2020		Mar 31, 2020		Dec 31, 2019			Dec 31, 2020		Dec 31, 2019
Nonaccrual Loan Activity:
Balance at beginning of period	$14,740		$16,017		$17,918		$17,408		$14,902			$17,408		$11,707
Additions to nonaccrual status	707		971		237		1,729		2,766			3,644		11,982
Loans returned to accruing status	(1,112)		(1,623)		(154)		(393)		—			(3,282)		(1,570)
Loans charged-off	(246)		(111)		(325)		(635)		(132)			(1,317)		(2,020)
Loans transferred to other real estate owned	(285)		—		—		(28)		—			(313)		(2,000)
Payments, payoffs and other changes	(607)		(514)		(1,659)		(163)		(128)			(2,943)		(691)
Balance at end of period	$13,197		$14,740		$16,017		$17,918		$17,408			$13,197		$17,408
Allowance for Credit Losses on Loans:
Balance at beginning of period	$42,645		$41,441		$39,665		$27,014		$26,997			$27,014		$27,072
Adoption of CECL accounting standard (Topic 326)	—		—		—		6,501		—			6,501		—
Provision for credit losses on loans (1)	1,579		1,300		2,084		6,773		—			11,736		1,575
Charge-offs	(245)		(111)		(326)		(635)		(132)			(1,317)		(2,020)
Recoveries	127		15		18		12		149			172		387
Balance at end of period	$44,106		$42,645		$41,441		$39,665		$27,014			$44,106		$27,014
Allowance for Credit Losses on Unfunded Commitments:
Balance at beginning of period	$2,180		$2,155		$2,039		$293		$317			$293		$293
Adoption of CECL accounting standard (Topic 326)	—		—		—		1,483		—			1,483		—
Provision for credit losses on unfunded commitments (2)	202		25		116		263		(24)			606		1,427
Balance at end of period (3)	$2,382		$2,180		$2,155		$2,039		$293			$2,382		$1,720

(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 each period in 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 Twelve Months Ended
	Dec 31, 2020		Sep 30, 2020		Jun 30, 2020		Mar 31, 2020		Dec 31, 2019			Dec 31, 2020		Dec 31, 2019
Net Loan Charge-Offs (Recoveries):
Commercial real estate	$133		$—		$19		$153		($44)			$305		$903
Commercial & industrial	(12)		—		284		290		(15)			562		(147)
Total commercial	121		—		303		443		(59)			867		756
Residential real estate	(20)		99		—		—		—			79		486
Home equity	9		(4)		(5)		172		17			172		318
Other consumer	8		1		10		8		25			27		73
Total consumer	17		(3)		5		180		42			199		391
Total	$118		$96		$308		$623		($17)			$1,145		$1,633
Net charge-offs to average loans (annualized)	0.01	%	0.01	%	0.03	%	0.06	%	—	%		0.03	%	0.04	%

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	December 31, 2020							September 30, 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	$172,731		$35		0.08	%		$168,106		$39		0.09	%		$4,625		($4)		(0.01)	%
Mortgage loans held for sale	71,113		569		3.18			61,043		468		3.05			10,070		101		0.13
Taxable debt securities	892,112		3,869		1.73			906,977		4,870		2.14			(14,865)		(1,001)		(0.41)
FHLB stock	33,320		414		4.94			43,839		532		4.83			(10,519)		(118)		0.11
Commercial real estate	1,658,809		11,905		2.86			1,652,136		11,649		2.81			6,673		256		0.05
Commercial & industrial	818,611		7,174		3.49			849,452		6,920		3.24			(30,841)		254		0.25
Total commercial	2,477,420		19,079		3.06			2,501,588		18,569		2.95			(24,168)		510		0.11
Residential real estate	1,475,699		13,206		3.56			1,510,621		14,047		3.70			(34,922)		(841)		(0.14)
Home equity	264,811		2,229		3.35			276,221		2,320		3.34			(11,410)		(91)		0.01
Other	18,209		226		4.94			18,706		237		5.04			(497)		(11)		(0.10)
Total consumer	283,020		2,455		3.45			294,927		2,557		3.45			(11,907)		(102)		—
Total loans	4,236,139		34,740		3.26			4,307,136		35,173		3.25			(70,997)		(433)		0.01
Total interest-earning assets	5,405,415		39,627		2.92			5,487,101		41,082		2.98			(81,686)		(1,455)		(0.06)
Noninterest-earning assets	362,848							377,348							(14,500)
Total assets	$5,768,263							$5,864,449							($96,186)
Liabilities and Shareholders' Equity:
Interest-bearing demand deposits	$161,664		$81		0.20	%		$157,986		$83		0.21	%		$3,678		($2)		(0.01)	%
NOW accounts	664,055		115		0.07			631,148		99		0.06			32,907		16		0.01
Money market accounts	903,607		963		0.42			839,032		977		0.46			64,575		(14)		(0.04)
Savings accounts	455,933		70		0.06			428,781		67		0.06			27,152		3		—
Time deposits (in-market)	711,838		2,566		1.43			730,464		3,015		1.64			(18,626)		(449)		(0.21)
Total interest-bearing in-market deposits	2,897,097		3,795		0.52			2,787,411		4,241		0.61			109,686		(446)		(0.09)
Wholesale brokered time deposits	589,272		837		0.57			463,756		1,291		1.11			125,516		(454)		(0.54)
Total interest-bearing deposits	3,486,369		4,632		0.53			3,251,167		5,532		0.68			235,202		(900)		(0.15)
FHLB advances	634,081		2,305		1.45			860,758		3,354		1.55			(226,677)		(1,049)		(0.10)
Junior subordinated debentures	22,681		122		2.14			22,681		135		2.37			—		(13)		(0.23)
PPPLF borrowings	81,858		72		0.35			180,128		159		0.35			(98,270)		(87)		—
Total interest-bearing liabilities	4,224,989		7,131		0.67			4,314,734		9,180		0.85			(89,745)		(2,049)		(0.18)
Noninterest-bearing demand deposits	838,713							842,949							(4,236)
Other liabilities	176,592							186,981							(10,389)
Shareholders' equity	527,969							519,785							8,184
Total liabilities and shareholders' equity	$5,768,263							$5,864,449							($96,186)
Net interest income (FTE)			$32,496							$31,902							$594
Interest rate spread					2.25	%						2.13	%						0.12	%
Net interest margin					2.39	%						2.31	%						0.08	%

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

For the Three Months Ended	Dec 31, 2020		Sep 30, 2020		Quarter Change
Commercial loans	$253		$248		$5
Total	$253		$248		$5

Washington Trust Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCE SHEETS (FTE Basis)
(Unaudited; Dollars in thousands)
For the Twelve Months Ended	December 31, 2020						December 31, 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	$160,427		$459		0.29	%	$85,447		$1,667		1.95	%	$74,980		($1,208)		(1.66)	%
Mortgage loans for sale	54,237		1,762		3.25		30,928		1,237		4.00		23,309		525		(0.75)
Taxable debt securities	902,278		20,050		2.22		947,875		26,367		2.78		(45,597)		(6,317)		(0.56)
Nontaxable debt securities	—		—		—		450		23		5.11		(450)		(23)		(5.11)
Total securities	902,278		20,050		2.22		948,325		26,390		2.78		(46,047)		(6,340)		(0.56)
FHLB stock	45,235		2,240		4.95		47,761		2,855		5.98		(2,526)		(615)		(1.03)
Commercial real estate	1,632,460		52,231		3.20		1,481,116		68,193		4.60		151,344		(15,962)		(1.40)
Commercial & industrial	767,176		27,410		3.57		596,451		28,545		4.79		170,725		(1,135)		(1.22)
Total commercial	2,399,636		79,641		3.32		2,077,567		96,738		4.66		322,069		(17,097)		(1.34)
Residential real estate	1,488,343		55,866		3.75		1,368,824		54,932		4.01		119,519		934		(0.26)
Home equity	277,296		10,032		3.62		286,767		14,011		4.89		(9,471)		(3,979)		(1.27)
Other	18,929		941		4.97		23,153		1,137		4.91		(4,224)		(196)		0.06
Total consumer	296,225		10,973		3.70		309,920		15,148		4.89		(13,695)		(4,175)		(1.19)
Total loans	4,184,204		146,480		3.50		3,756,311		166,818		4.44		427,893		(20,338)		(0.94)
Total interest-earning assets	5,346,381		170,991		3.20		4,868,772		198,967		4.09		477,609		(27,976)		(0.89)
Noninterest-earning assets	358,569						300,549						58,020
Total assets	$5,704,950						$5,169,321						$535,629
Liabilities and Shareholders' Equity:
Interest-bearing demand deposits	$159,366		$806		0.51	%	$144,836		$2,537		1.75	%	$14,530		($1,731)		(1.24)	%
NOW accounts	593,105		368		0.06		469,540		310		0.07		123,565		58		(0.01)
Money market accounts	839,915		5,402		0.64		693,921		7,713		1.11		145,994		(2,311)		(0.47)
Savings accounts	415,741		265		0.06		365,927		272		0.07		49,814		(7)		(0.01)
Time deposits (in-market)	742,236		13,138		1.77		794,124		16,056		2.02		(51,888)		(2,918)		(0.25)
Total interest-bearing in-market deposits	2,750,363		19,979		0.73		2,468,348		26,888		1.09		282,015		(6,909)		(0.36)
Wholesale brokered time deposits	501,306		5,833		1.16		461,862		10,213		2.21		39,444		(4,380)		(1.05)
Total interest-bearing deposits	3,251,669		25,812		0.79		2,930,210		37,101		1.27		321,459		(11,289)		(0.48)
FHLB advances	920,704		15,806		1.72		1,015,914		26,168		2.58		(95,210)		(10,362)		(0.86)
Junior subordinated debentures	22,681		641		2.83		22,681		980		4.32		—		(339)		(1.49)
PPPLF borrowings	66,492		233		0.35		—		—		—		66,492		233		0.35
Total interest-bearing liabilities	4,261,546		42,492		1.00		3,968,805		64,249		1.62		292,741		(21,757)		(0.62)
Noninterest-bearing demand deposits	759,841						615,049						144,792
Other liabilities	167,861						104,463						63,398
Shareholders' equity	515,702						481,004						34,698
Total liabilities and shareholders' equity	$5,704,950						$5,169,321						$535,629
Net interest income (FTE)			$128,499						$134,718						($6,219)
Interest rate spread					2.20	%					2.47	%					(0.27)	%
Net interest margin					2.40	%					2.77	%					(0.37)	%

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

For the Twelve Months Ended	Dec 31, 2020		Dec 31, 2019		Change
Commercial loans	$1,055		$1,299		($244)
Nontaxable debt securities	—		5		(5)
Total	$1,055		$1,304		($249)

 

Washington Trust Bancorp, Inc. and Subsidiaries
SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures
(Unaudited; Dollars in thousands, except per share amounts)
	Dec 31, 2020		Sep 30, 2020		Jun 30, 2020		Mar 31, 2020		Dec 31, 2019
Tangible Book Value per Share:
Total shareholders' equity, as reported	$534,195		$527,693		$520,163		$508,597		$503,492
Less:
Goodwill	63,909		63,909		63,909		63,909		63,909
Identifiable intangible assets, net	6,305		6,530		6,759		6,988		7,218
Total tangible shareholders' equity	$463,981		$457,254		$449,495		$437,700		$432,365
Shares outstanding, as reported	17,265		17,260		17,260		17,252		17,363
Book value per share - GAAP	$30.94		$30.57		$30.14		$29.48		$29.00
Tangible book value per share - Non-GAAP	$26.87		$26.49		$26.04		$25.37		$24.90
Tangible Equity to Tangible Assets:
Total tangible shareholders' equity	$463,981		$457,254		$449,495		$437,700		$432,365
Total assets, as reported	$5,713,169		$5,849,792		$5,876,960		$5,620,979		$5,292,659
Less:
Goodwill	63,909		63,909		63,909		63,909		63,909
Identifiable intangible assets, net	6,305		6,530		6,759		6,988		7,218
Total tangible assets	$5,642,955		$5,779,353		$5,806,292		$5,550,082		$5,221,532
Equity to assets - GAAP	9.35	%	9.02	%	8.85	%	9.05	%	9.51	%
Tangible equity to tangible assets - Non-GAAP	8.22	%	7.91	%	7.74	%	7.89	%	8.28	%

 

	For the Three Months Ended											For the Twelve Months Ended
	Dec 31, 2020		Sep 30, 2020		Jun 30, 2020		Mar 31, 2020		Dec 31, 2019			Dec 31, 2020		Dec 31, 2019
Return on Average Tangible Assets:
Net income, as reported	$18,566		$18,322		$21,040		$11,901		$15,536			$69,829		$69,118
Total average assets, as reported	$5,768,263		$5,864,449		$5,789,692		$5,394,948		$5,227,035			$5,704,950		$5,169,321
Less average balances of:
Goodwill	63,909		63,909		63,909		63,909		63,909			63,909		63,909
Identifiable intangible assets, net	6,414		6,641		6,871		7,100		7,330			6,755		7,681
Total average tangible assets	$5,697,940		$5,793,899		$5,718,912		$5,323,939		$5,155,796			$5,634,286		$5,097,731
Return on average assets - GAAP	1.28	%	1.24	%	1.46	%	0.89	%	1.18	%		1.22	%	1.34	%
Return on average tangible assets - Non-GAAP	1.30	%	1.26	%	1.48	%	0.90	%	1.20	%		1.24	%	1.36	%
Return on Average Tangible Equity:
Net income available to common shareholders, as reported	$18,524		$18,285		$21,000		$11,869		$15,502			$69,678		$68,979
Total average equity, as reported	$527,969		$519,785		$511,751		$503,124		$502,614			$515,702		$481,004
Less average balances of:
Goodwill	63,909		63,909		63,909		63,909		63,909			63,909		63,909
Identifiable intangible assets, net	6,414		6,641		6,871		7,100		7,330			6,755		7,681
Total average tangible equity	$457,646		$449,235		$440,971		$432,115		$431,375			$445,038		$409,414
Return on average equity - GAAP	13.96	%	13.99	%	16.51	%	9.49	%	12.24	%		13.51	%	14.34	%
Return on average tangible equity - Non-GAAP	16.10	%	16.19	%	19.15	%	11.05	%	14.26	%		15.66	%	16.85	%

 

Category: Earnings

 

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SOURCE Washington Trust Bancorp, Inc.

FAQ

What were Washington Trust's fourth quarter earnings for 2020?

Washington Trust reported fourth quarter 2020 net income of $18.6 million, or $1.07 per diluted share.

How much did mortgage banking revenues increase for Washington Trust in 2020?

Mortgage banking revenues surged by 220% year-over-year to a record $47.4 million for the year.

What was the total loan amount for Washington Trust at the end of 2020?

Total loans amounted to $4.2 billion at December 31, 2020.

How did Washington Trust's return on average equity trend in 2020?

Return on average equity decreased to 13.51% for 2020, down from 14.34% in the prior year.

What is the stock symbol for Washington Trust Bancorp?

The stock symbol for Washington Trust Bancorp is WASH.