Washington Trust Reports Third Quarter 2020 Earnings

Rhea-AI Summary

Washington Trust Bancorp (NASDAQ: WASH) reported third-quarter 2020 net income of $18.3 million, or $1.06 per diluted share, down from $21.0 million, or $1.21 per diluted share in Q2 2020. The company experienced strong mortgage banking activity, with revenues of $12.4 million, up 155% year-over-year. Wealth management revenues rose to $9.0 million, a 4% increase from Q2 2020. However, total noninterest income decreased by 3% to $25.5 million. The loan portfolio stood at $4.3 billion, essentially flat from Q2, while in-market deposits grew by 4% to $3.7 billion.

Positive

• Mortgage banking revenues increased by $7.5 million, or 155%, year-over-year.
• Residential mortgage loan originations reached a record $510 million in Q3 2020, a 20% increase from Q2.
• Wealth management assets under administration rose to $6.4 billion, up 4% from the previous quarter.
• Total deposits increased by $184 million, or 4%, from the previous quarter.

Negative

• Net income dropped from $21.0 million in Q2 2020 to $18.3 million in Q3 2020.
• Noninterest income decreased by $852 thousand, or 3%, quarter-over-quarter.
• Total loans decreased by $6 million, or 0.1%, from the previous quarter.

WESTERLY, R.I., Oct. 19, 2020 /PRNewswire/ -- Washington Trust Bancorp, Inc. (Nasdaq:WASH), parent company of The Washington Trust Company, today announced third quarter 2020 net income of $18.3 million, or $1.06 per diluted share, compared to net income of $21.0 million, or $1.21 per diluted share, reported for the second quarter of 2020.

"Washington Trust's third quarter results reflect our success at generating solid earnings during the most challenging of economic times," stated Edward O. Handy III, Chairman and Chief Executive Officer.  "We had good performances across key business lines, led by strong mortgage banking activity, increases in wealth management assets under administration, and in-market deposit growth.  As we move forward, we do so cautiously, but with confidence in our team, our business model and our strong financial foundation."

Selected financial highlights for the third quarter of 2020 include:

• Returns on average equity and average assets for the third quarter were 13.99% and 1.24%, respectively, compared to 16.51% and 1.46%, respectively, in the preceding quarter.
• The provision for credit losses was $1.3 million in the third quarter, compared to $2.2 million in the preceding quarter.
• Wealth management revenues were $9.0 million for the third quarter, up by $349 thousand, or 4%, from the preceding quarter.
• Mortgage banking continued its strong performance in the third quarter with revenues totaling $12.4 million.  Third quarter 2020 mortgage banking revenues were up by $7.5 million, or 155%, from the same period a year ago.
• Residential mortgage loan origination activity amounted to an all-time quarterly high of $510 million in the third quarter of 2020, up by $83.6 million, or 20%, from the preceding quarter.  Residential mortgage loan originations increased by $215 million, or 73%, from the same period a year ago.
• Total loans amounted to $4.3 billion at September 30, 2020, essentially flat from the end of the preceding quarter.  Total loans were up by $504 million, or 13%, from a year ago.
• In-market deposits (total deposits less out-of-market wholesale brokered deposits) amounted to $3.7 billion at  September 30, 2020, up by $129 million, or 4%, from the end of the preceding quarter, and up by $546 million, or 17%, from a year ago.

Net Interest Income
Net interest income was $31.7 million for the third quarter of 2020, up by $709 thousand, or 2%, from the second quarter of 2020.  The net interest margin was 2.31% for the third quarter, unchanged from the preceding quarter.

Significant linked quarter changes included:

• Average interest-earning assets increased by $63 million, with an increase of $81 million in average loans, partially offset by a decrease of $19 million in average cash and short-term investments balances.  The yield on interest-earning assets for the third quarter was 2.98%, down by 20 basis points from the preceding quarter, reflecting the impact of lower market interest rates.
• Average interest-bearing liabilities decreased by $43 million, with a decrease of $126 million in average wholesale funding balances, partially offset by an increase of $83 million in average in-market deposits.  Wholesale funding balances consist of wholesale brokered time deposits, Federal Home Loan Bank advances and Federal Reserve Payment Protection Program Lending Facility ("PPPLF") borrowings.  The cost of interest-bearing liabilities for the third quarter of 2020 was 0.85%, down by 23 basis points from the preceding quarter, reflecting the impact of lower market interest rates.
• Average noninterest-bearing demand deposit balances increased by $98 million from the preceding quarter.

Noninterest Income
Noninterest income totaled $25.5 million for the third quarter of 2020, down by $852 thousand, or 3%, from the second quarter of 2020.  Linked quarter changes included:

• Mortgage banking revenues totaled $12.4 million for the third quarter of 2020, down by $2.5 million, or 17%, from the record quarterly level in the second quarter of 2020, with a decline in unrealized gains partially offset by an increase in realized gains.  Net realized gains increased on a linked quarter basis due to increased sales volume and sales yield on loans sold to the secondary market.  Mortgage loans sold to the secondary market reached an all-time quarterly high of $354 million in the third quarter of 2020, up by $49 million, or 16%, from the preceding quarter.  Net unrealized gains decreased on a linked quarter basis, reflecting a decrease in the mortgage pipeline and a corresponding decrease in the fair value of mortgage loan commitments as of September 30, 2020.
• Wealth management revenues amounted to $9.0 million for the third quarter of 2020, up by $349 thousand, or 4%, on a linked quarter basis.  This included an increase in asset-based revenues of $630 thousand, or 8%, partially offset by a decrease in transaction-based revenues of $281 thousand, or 63%.  The decline in transaction-based revenues was mainly due to tax preparation fees, which are generally concentrated in the first half of the year.
  Wealth management assets under administration ("AUA") amounted to $6.4 billion at September 30, 2020, up by $257 million, or 4%, from June 30, 2020.  The increase reflected net investment appreciation of $335 million, partially offset by net client asset outflows of $78 million in the third quarter of 2020.  The average balance of AUA for the third quarter of 2020 increased by approximately $594 million, or 10%, from the average balance for the preceding quarter.
• Loan related derivative income was $1.3 million in the third quarter of 2020, up by $1.2 million from the preceding quarter, reflecting a higher volume of commercial borrower interest rate swap transactions.
• Income from bank-owned life insurance totaled $567 thousand in the third quarter of 2020, down by $224 thousand, or 28%, from the preceding quarter.  Included in the second quarter was $229 thousand of non-taxable income due to the receipt of life insurance proceeds.

Noninterest Expenses
Noninterest expenses totaled $32.3 million for the third quarter of 2020, up by $3.9 million, or 14%, from the second quarter of 2020.  Linked quarter changes included:

• Salaries and employee benefits expense, our largest noninterest expense, amounted to $21.9 million, up by $2.4 million, or 12%, from the preceding quarter.  This was largely attributable to approximately $1 million of deferred labor (contra-expense) recognized in the second quarter associated with the Small Business Administration's Paycheck Protection Program ("PPP") loan originations in that quarter, as well as third quarter volume-related increases in mortgage originator commission expense and third quarter increases in performance-based compensation expense.
• Legal, audit and professional fees were up by $593 thousand from the preceding quarter, reflecting increased costs associated with various legal and consulting matters.
• Outsourced services expense was up by $376 thousand from the preceding quarter, largely due to volume-related increases in third party processing costs associated with customer loan related derivative transactions.
• FDIC deposit insurance costs were down by $282 thousand from the preceding quarter, reflecting a decline in our assessment rate.
• Other expenses were up by $413 thousand from the preceding quarter.  Of this increase, $170 thousand resulted from the second quarter reversal of a contingency reserve.

Income Tax
Income tax expense totaled $5.1 million for the third quarter of 2020, down by $416 thousand from the preceding quarter, largely due to a lower level of pre-tax income.  The effective tax rate for the third quarter of 2020 was 21.9%, compared to 20.9% in the preceding quarter.  Based on current federal and applicable state income tax statutes, the Corporation currently expects its fourth quarter effective tax rate to be 21.9% and its full-year 2020 effective tax rate to be approximately 21.5%.

Investment Securities
The securities portfolio totaled $914 million at September 30, 2020, down by $25 million, or 3%, from June 30, 2020, reflecting routine pay-downs on mortgage-backed securities, calls of debt securities, as well as a temporary decrease in the fair value of available for sale securities.  These decreases were partially offset by purchases of U.S. government agency and U.S. government-sponsored debt securities, including mortgage-backed securities.  Third quarter 2020 purchases totaled $129 million, with a weighted average yield of 1.68%.  Securities represented 16% of total assets at both September 30, 2020 and June 30, 2020.

Loans
Total loans stood at $4.3 billion at September 30, 2020, down by $6 million, or 0.1% from the end of the preceding quarter.  Linked quarter changes included:

• Commercial loans increased by $5 million from June 30, 2020.
• Residential real estate loans decreased by $1 million from June 30, 2020.
• The consumer loan portfolio decreased by $9 million from the balance at June 30, 2020.

Washington Trust continues to work with and support our customers experiencing financial difficulty due to the COVID-19 pandemic.  See the section labeled "Supplemental Loan Portfolio Information" in the accompanying tabular disclosures for information regarding loan deferments and PPP loans.

Deposits and Borrowings
Total deposits amounted to $4.3 billion at September 30, 2020, up by $184 million, or 4%, from the end of the preceding quarter.  Included in total deposits are out-of-market wholesale brokered time deposits, which increased by $56 million, or 11%, from June 30, 2020.  Excluding wholesale brokered time deposits, in-market deposits at September 30, 2020 were up by $129 million, or 4%, from the end of the preceding quarter, reflecting seasonal inflows of various institutional and governmental depositors based on their underlying business cycles.

Federal Home Loan Bank advances totaled $714 million at September 30, 2020, down by $291 million from June 30, 2020.

As of September 30, 2020, the balance of PPPLF borrowings amounted to $106 million, up by $67 million from the balance at June 30, 2020.

Asset Quality
Nonperforming assets amounted to $14.7 million at September 30, 2020, down by $1.3 million from the end of the preceding quarter.  Total nonaccrual loans amounted to $14.7 million, or 0.34% of total loans, at September 30, 2020, compared to $16.0 million, or 0.37% of total loans, at June 30, 2020.  Total past due loans amounted to $10.4 million, or 0.24% of total loans, at September 30, 2020, compared to $14.7 million, or 0.34% of total loans, at June 30, 2020.  The granting of loan payment deferments has not resulted in increased nonaccrual and past due loans, as these amounts do not reflect loans that have been modified as a result of the COVID-19 pandemic.  Washington Trust actively monitors loan deferments and asset quality given the continued uncertainty regarding the impact of the COVID-19 pandemic on various industries and customer segments.

Total troubled debt restructured ("TDR") loans amounted to $8.6 million as of September 30, 2020, up by $2.1 million from June 30, 2020, due to loan payment deferments on residential and consumer loans that were delinquent before the pandemic and did not qualify for TDR accounting relief.

The allowance for credit losses ("ACL") on loans amounted to $42.6 million, or 1.00% of total loans, at September 30, 2020, compared to $41.4 million, or 0.97% of total loans, at June 30, 2020.  The ACL on unfunded commitments, included in other liabilities on the Consolidated Balance Sheets, amounted to $2.2 million at September 30, 2020, essentially unchanged from the balance at June 30, 2020.

In the third quarter of 2020, a provision for credit losses of $1.3 million was charged to earnings, compared to $2.2 million in the preceding quarter.  In the third quarter of 2020, net charge-offs of $96 thousand were recognized, compared to $308 thousand in the preceding quarter.

Capital and Dividends
Total shareholders' equity was $527.7 million at September 30, 2020, up by $7.5 million from June 30, 2020.  This increase included net income of $18.3 million, which was partially offset by $8.9 million in dividend declarations and a decline of $2.9 million in the accumulated other comprehensive income component of shareholders' equity reflecting a temporary decline in the fair value of available for sale debt securities.

Capital levels at September 30, 2020 exceeded the regulatory minimum levels to be considered well capitalized, with a total risk-based capital ratio of 13.09% at September 30, 2020, compared to 12.78% at June 30, 2020.

Book value per share amounted to $30.57 at September 30, 2020, compared to $30.14 at June 30, 2020.

The Board of Directors declared a quarterly dividend of 51 cents per share for the quarter ended September 30, 2020.  The dividend was paid on October 9, 2020 to shareholders of record on October 1, 2020.

Conference Call
Washington Trust will host a conference call to discuss its third quarter results, business highlights and outlook on Tuesday, October 20, 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 10148833; the audio replay will be available through November 3, 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 December 31, 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; 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)
	Sep 30, 2020		Jun 30, 2020		Mar 31, 2020		Dec 31, 2019		Sep 30, 2019
Assets:
Cash and due from banks	$204,113		$215,601		$178,678		$132,193		$141,768
Short-term investments	7,902		7,739		6,591		6,262		4,336
Mortgage loans held for sale, at fair value	68,095		43,997		49,751		27,833		44,657
Available for sale debt securities, at fair value	913,850		938,446		917,392		899,490		887,020
Federal Home Loan Bank stock, at cost	37,469		50,017		53,576		50,853		45,030
Loans:
Total loans	4,282,047		4,287,641		4,090,396		3,892,999		3,778,106
Less: allowance for credit losses on loans	42,645		41,441		39,665		27,014		26,997
Net loans	4,239,402		4,246,200		4,050,731		3,865,985		3,751,109
Premises and equipment, net	27,711		28,067		28,543		28,700		29,293
Operating lease right-of-use assets	29,861		27,022		26,098		26,792		27,500
Investment in bank-owned life insurance	83,623		83,056		83,053		82,490		81,920
Goodwill	63,909		63,909		63,909		63,909		63,909
Identifiable intangible assets, net	6,530		6,759		6,988		7,218		7,448
Other assets	167,327		166,147		155,669		100,934		114,888
Total assets	$5,849,792		$5,876,960		$5,620,979		$5,292,659		$5,198,878
Liabilities:
Deposits:
Noninterest-bearing deposits	$840,444		$815,770		$622,893		$609,924		$619,839
Interest-bearing deposits	3,445,249		3,285,666		3,083,421		2,888,958		2,966,314
Total deposits	4,285,693		4,101,436		3,706,314		3,498,882		3,586,153
Federal Home Loan Bank advances	713,868		1,005,051		1,198,534		1,141,464		956,786
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	32,012		29,125		28,184		28,861		29,541
Other liabilities	162,099		159,604		156,669		97,279		105,892
Total liabilities	5,322,099		5,356,797		5,112,382		4,789,167		4,701,053
Shareholders' Equity:
Common stock	1,085		1,085		1,085		1,085		1,084
Paid-in capital	124,768		123,684		123,167		123,281		121,900
Retained earnings	408,773		399,386		387,243		390,363		383,765
Accumulated other comprehensive income (loss)	(3,403)		(462)		929		(11,237)		(8,924)
Treasury stock, at cost	(3,530)		(3,530)		(3,827)		—		—
Total shareholders' equity	527,693		520,163		508,597		503,492		497,825
Total liabilities and shareholders' equity	$5,849,792		$5,876,960		$5,620,979		$5,292,659		$5,198,878

 

 

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 Nine Months Ended
	Sep 30, 2020		Jun 30, 2020		Mar 31, 2020		Dec 31, 2019		Sep 30, 2019			Sep 30, 2020		Sep 30, 2019
Interest income:
Interest and fees on loans	$34,925		$36,005		$40,008		$40,079		$41,558			$110,938		$125,440
Interest on mortgage loans held for sale	468		440		285		359		410			1,193		878
Taxable interest on debt securities	4,870		5,477		5,834		5,817		6,318			16,181		20,550
Nontaxable interest on debt securities	—		—		—		—		1			—		18
Dividends on Federal Home Loan Bank stock	532		654		640		693		747			1,826		2,162
Other interest income	39		36		349		435		493			424		1,232
Total interest and dividend income	40,834		42,612		47,116		47,383		49,527			130,562		150,280
Interest expense:
Deposits	5,532		7,112		8,536		9,144		9,792			21,180		27,957
Federal Home Loan Bank advances	3,354		4,382		5,765		6,015		6,512			13,501		20,153
Junior subordinated debentures	135		171		213		230		245			519		750
Other interest expense	159		2		—		—		—			161		—
Total interest expense	9,180		11,667		14,514		15,389		16,549			35,361		48,860
Net interest income	31,654		30,945		32,602		31,994		32,978			95,201		101,420
Provision for credit losses	1,325		2,200		7,036		—		400			10,561		1,575
Net interest income after provision for credit losses	30,329		28,745		25,566		31,994		32,578			84,640		99,845
Noninterest income:
Wealth management revenues	8,954		8,605		8,689		8,894		9,153			26,248		27,954
Mortgage banking revenues	12,353		14,851		6,096		3,669		4,840			33,300		11,126
Card interchange fees	1,161		1,031		947		1,100		1,099			3,139		3,114
Service charges on deposit accounts	598		517		860		941		939			1,975		2,743
Loan related derivative income	1,264		99		2,455		1,116		1,407			3,818		2,877
Income from bank-owned life insurance	567		791		564		570		569			1,922		1,784
Net realized gains (losses) on securities	—		—		—		27		—			—		(80)
Other income	571		426		316		301		335			1,313		944
Total noninterest income	25,468		26,320		19,927		16,618		18,342			71,715		50,462
Noninterest expense:
Salaries and employee benefits	21,892		19,464		19,468		18,374		18,332			60,824		54,387
Outsourced services	3,160		2,784		3,000		2,752		2,722			8,944		7,846
Net occupancy	2,012		1,909		2,019		1,986		1,933			5,940		5,835
Equipment	934		895		977		996		1,046			2,806		3,085
Legal, audit and professional fees	1,252		659		822		692		645			2,733		1,843
FDIC deposit insurance costs	392		674		422		109		(460)			1,488		509
Advertising and promotion	384		186		259		402		368			829		1,132
Amortization of intangibles	228		230		230		229		236			688		714
Other expenses	2,090		1,677		3,256		3,215		2,048			7,023		6,634
Total noninterest expense	32,344		28,478		30,453		28,755		26,870			91,275		81,985
Income before income taxes	23,453		26,587		15,040		19,857		24,050			65,080		68,322
Income tax expense	5,131		5,547		3,139		4,321		5,236			13,817		14,740
Net income	$18,322		$21,040		$11,901		$15,536		$18,814			$51,263		$53,582
Net income available to common shareholders	$18,285		$21,000		$11,869		$15,502		$18,778			$51,154		$53,477
Weighted average common shares outstanding:
Basic	17,260		17,257		17,345		17,351		17,338			17,287		17,324
Diluted	17,317		17,292		17,441		17,436		17,414			17,369		17,406
Earnings per common share:
Basic	$1.06		$1.22		$0.68		$0.89		$1.08			$2.96		$3.09
Diluted	$1.06		$1.21		$0.68		$0.89		$1.08			$2.95		$3.07
Cash dividends declared per share	$0.51		$0.51		$0.51		$0.51		$0.51			$1.53		$1.49

 

 

Washington Trust Bancorp, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited; Dollars and shares in thousands, except per share amounts)
						Sep 30, 2020				Jun 30, 2020				Mar 31, 2020				Dec 31, 2019		Sep 30, 2019
Share and Equity Related Data:
Book value per share						$30.57				$30.14				$29.48				$29.00		$28.71
Tangible book value per share - Non-GAAP (1)						$26.49				$26.04				$25.37				$24.90		$24.60
Market value per share						$30.66				$32.75				$36.56				$53.79		$48.31
Shares issued at end of period						17,363				17,363				17,363				17,363		17,338
Shares outstanding at end of period						17,260				17,260				17,252				17,363		17,338
Capital Ratios (2):
Tier 1 risk-based capital						12.23			%	11.95			%	11.62			%	12.23	%	12.21	%
Total risk-based capital						13.09			%	12.78			%	12.42			%	12.94	%	12.94	%
Tier 1 leverage ratio						8.77			%	8.42			%	8.77			%	9.04	%	8.97	%
Common equity tier 1						11.69			%	11.40			%	11.08			%	11.65	%	11.62	%
Balance Sheet Ratios:
Equity to assets						9.02			%	8.85			%	9.05			%	9.51	%	9.58	%
Tangible equity to tangible assets - Non-GAAP (1)						7.91			%	7.74			%	7.89			%	8.28	%	8.32	%
Loans to deposits (3)						100.5			%	104.6			%	110.6			%	111.3	%	105.8	%
																		For the Nine Months Ended
	For the Three Months Ended
	Sep 30, 2020		Jun 30, 2020		Mar 31, 2020			Dec 31, 2019				Sep 30, 2019						Sep 30, 2020		Sep 30, 2019
Performance Ratios (4):
Net interest margin (5)	2.31	%	2.31	%	2.61		%	2.61			%	2.72			%			2.41	%	2.82	%
Return on average assets (net income divided by average assets)	1.24	%	1.46	%	0.89		%	1.18			%	1.44			%			1.20	%	1.39	%
Return on average tangible assets - Non-GAAP (1)	1.26	%	1.48	%	0.90		%	1.20			%	1.46			%			1.22	%	1.41	%
Return on average equity (net income available for common shareholders divided by average equity)	13.99	%	16.51	%	9.49		%	12.24			%	15.20			%			13.36	%	15.09	%
Return on average tangible equity - Non-GAAP (1)	16.19	%	19.15	%	11.05		%	14.26			%	17.79			%			15.50	%	17.79	%
Efficiency ratio (6)	56.6	%	49.7	%	58.0		%	59.2			%	52.4			%			54.7	%	54.0	%

(1)	See the section labeled "Supplemental Information - Calculation of Non-GAAP Financial Measures" at the end of this document.
(2)	Estimated for September 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 Nine Months Ended
	Sep 30, 2020		Jun 30, 2020		Mar 31, 2020		Dec 31, 2019		Sep 30, 2019			Sep 30, 2020		Sep 30, 2019
Wealth Management Results
Wealth Management Revenues:
Asset-based revenues	$8,786		$8,156		$8,355		$8,731		$9,013			$25,297		$27,075
Transaction-based revenues	168		449		334		163		140			951		879
Total wealth management revenues	$8,954		$8,605		$8,689		$8,894		$9,153			$26,248		$27,954
Assets Under Administration (AUA):
Balance at beginning of period	$6,138,845		$5,337,733		$6,235,801		$6,126,327		$6,478,890			$6,235,801		$5,910,814
Net investment appreciation (depreciation) & income	335,209		671,602		(772,735)		310,766		66,514			234,076		809,060
Net client asset inflows (outflows)	(78,402)		129,510		(125,333)		(243,175)		(419,077)			(74,225)		(593,547)
Other (1)	—		—		—		41,883		—			—		—
Balance at end of period	$6,395,652		$6,138,845		$5,337,733		$6,235,801		$6,126,327			$6,395,652		$6,126,327
Percentage of AUA that are managed assets	90%		90%		89%		90%		90%			90%		90%
Mortgage Banking Results
Mortgage Banking Revenues:
Realized gains on loan sales, net (2)	$14,280		$10,646		$3,688		$4,608		$4,509			$28,614		$9,370
Unrealized gains (losses), net (3)	(1,555)		4,415		2,325		(1,025)		243			5,185		1,379
Loan servicing fee income, net (4)	(372)		(210)		83		86		88			(499)		377
Total mortgage banking revenues	$12,353		$14,851		$6,096		$3,669		$4,840			$33,300		$11,126
Residential Mortgage Loan Originations:
Originations for retention in portfolio	$132,726		$126,894		$108,498		$120,882		$105,075			$368,118		$226,508
Originations for sale to secondary market (5)	377,137		299,321		183,222		160,175		189,979			859,680		437,928
Total mortgage loan originations	$509,863		$426,215		$291,720		$281,057		$295,054			$1,227,798		$664,436
Residential Mortgage Loans Sold:
Sold with servicing rights retained	$317,920		$246,945		$44,498		$42,612		$25,766			$609,363		$53,548
Sold with servicing rights released (5)	36,250		58,279		117,693		134,091		159,210			212,222		360,921
Total mortgage loans sold	$354,170		$305,224		$162,191		$176,703		$184,976			$821,585		$414,469

(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)
	Sep 30, 2020		Jun 30, 2020		Mar 31, 2020		Dec 31, 2019		Sep 30, 2019
Loans:
Commercial real estate (1)	$1,665,745		$1,630,998		$1,618,020		$1,547,572		$1,517,320
Commercial & industrial	822,269		852,445		655,157		585,289		566,426
Total commercial	2,488,014		2,483,443		2,273,177		2,132,861		2,083,746
Residential real estate (2)	1,506,726		1,508,223		1,510,472		1,449,090		1,378,518
Home equity	268,551		277,632		287,134		290,874		294,250
Other	18,756		18,343		19,613		20,174		21,592
Total consumer	287,307		295,975		306,747		311,048		315,842
Total loans	$4,282,047		$4,287,641		$4,090,396		$3,892,999		$3,778,106

(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.

 

 

	September 30, 2020							December 31, 2019
	Count		Balance		% of Total			Count		Balance		% of Total
Commercial Real Estate Portfolio Segmentation:
Multi-family dwelling	137		$542,971		33	%		123		$430,502		28	%
Retail	134		336,071		20			110		314,661		20
Office	75		292,154		18			78		294,910		19
Hospitality	39		148,164		9			32		128,867		8
Healthcare	16		120,429		7			16		110,409		7
Industrial and warehouse	26		96,819		6			25		82,432		5
Commercial mixed use	21		42,908		3			48		73,895		5
Other	42		86,229		4			70		111,896		8
Commercial real estate loans	490		$1,665,745		100	%		502		$1,547,572		100	%
Commercial & Industrial Portfolio Segmentation:
Healthcare and social assistance	263		$185,628		23	%		86		$138,857		24	%
Manufacturing	150		90,981		11			65		53,561		9
Retail	201		67,851		8			75		43,386		7
Educational services	60		67,357		8			22		56,556		10
Owner occupied and other real estate	279		65,949		8			157		46,033		8
Professional, scientific and technical	268		44,703		5			66		37,599		6
Accommodation and food services	276		43,525		5			64		16,562		3
Entertainment and recreation	93		34,537		4			35		30,807		5
Information	36		30,071		4			11		22,162		4
Transportation and warehousing	44		27,459		3			23		20,960		4
Finance and insurance	107		26,213		3			57		28,501		5
Public administration	26		23,845		3			23		25,107		4
Other	799		114,150		15			225		65,198		11
Commercial & industrial loans	2,602		$822,269		100	%		909		$585,289		100	%

 

 

Washington Trust Bancorp, Inc. and Subsidiaries
SUPPLEMENTAL LOAN PORTFOLIO INFORMATION
(Unaudited; Dollars in thousands)
	September 30, 2020							October 14, 2020
	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:
Retail	32		$122,596		36	%		20		$97,254		29	%
Hospitality	21		89,049		60			21		89,361		60
Healthcare	4		46,084		38			2		22,159		18
Office	4		17,679		6			3		9,253		3
Multi-family dwelling	9		10,732		2			7		6,362		1
Other	11		28,635		33			11		28,570		33
Subtotal - commercial real estate deferments	81		314,775		19			64		252,959		15
Commercial & Industrial Deferments by Segment:
Healthcare and social assistance	4		14,947		11			3		14,539		11
Educational services	4		7,400		13			4		7,423		13
Accommodation and food services	4		3,480		19			4		3,480		19
Entertainment and recreation	5		2,970		10			5		2,972		10
Owner occupied and other real estate	5		2,243		4			4		1,376		2
Manufacturing	1		1,538		2			3		2,481		4
Transportation and warehousing	5		1,408		6			4		1,125		4
Retail	1		1,068		2			—		—		—
Other	7		10,221		16			6		8,471		13
Subtotal - commercial & industrial deferments	36		45,275		8			33		41,867		7
Total commercial deferments	117		360,050		16			97		294,826		13
Residential real estate deferments	121		56,947		4			89		40,501		3
Consumer deferments	15		1,159		—			14		1,149		—
Total loan deferments	253		$418,156		10	%		200		$336,476		8	%
(1) Percent of respective outstanding portfolio segment balance, excluding PPP loans, as of September 30, 2020.
								September 30, 2020
								Count		Balance		% of Total
PPP Loans By Industry:
Healthcare and social assistance								183		$49,331		23	%
Accommodation and food services								217		25,410		12
Manufacturing								94		25,395		12
Professional, scientific and technical								223		20,848		10
Retail								138		12,731		6
Educational services								36		11,490		5
Owner occupied and other real estate								117		9,268		4
Entertainment and recreation								65		4,293		2
Information								24		3,914		2
Finance and insurance								56		2,423		1
Transportation and warehousing								21		2,050		1
Public administration								4		482		—
Other								592		49,149		22
Total PPP loans (included in the commercial & industrial loan portfolio)								1,770		$216,784		100	%
Average PPP loan size										$122
Net unamortized fees on PPP loans										$5,091

 

 

Washington Trust Bancorp, Inc. and Subsidiaries END OF PERIOD LOAN AND DEPOSIT COMPOSITION (Unaudited; Dollars in thousands)
			September 30, 2020					December 31, 2019
			Balance		% of Total			Balance		% of Total
Commercial Real Estate Loans by Property Location:
Connecticut			$653,853		39	%		$616,484		40	%
Massachusetts			501,243		30			458,029		30
Rhode Island			432,252		26			394,929		25
Subtotal			1,587,348		95			1,469,442		95
All other states			78,397		5			78,130		5
Total commercial real estate loans			$1,665,745		100	%		$1,547,572		100	%
Residential Real Estate Loans by Property Location:
Massachusetts			$1,017,659		68	%		$932,726		64	%
Rhode Island			342,344		23	%		356,392		25
Connecticut			125,568		8			140,574		10
Subtotal			1,485,571		99			1,429,692		99
All other states			21,155		1			19,398		1
Total residential real estate loans			$1,506,726		100	%		$1,449,090		100	%
	Sep 30, 2020		Jun 30, 2020		Mar 31, 2020			Dec 31, 2019		Sep 30, 2019
Deposits:
Noninterest-bearing demand deposits	$840,444		$815,770		$622,893			$609,924		$619,839
Interest-bearing demand deposits	170,198		158,343		178,391			159,938		152,200
NOW accounts	644,909		617,792		528,650			520,295		478,462
Money market accounts	877,536		834,954		784,893			765,899		749,122
Savings accounts	439,383		417,195		382,509			373,503		362,868
Time deposits (in-market)	729,058		728,801		776,992			784,481		792,941
In-market deposits	3,701,528		3,572,855		3,274,328			3,214,040		3,155,432
Wholesale brokered time deposits	584,165		528,581		431,986			284,842		430,721
Total deposits	$4,285,693		$4,101,436		$3,706,314			$3,498,882		$3,586,153

 

 

Washington Trust Bancorp, Inc. and Subsidiaries CREDIT & ASSET QUALITY DATA (Unaudited; Dollars in thousands)
					Sep 30, 2020			Jun 30, 2020				Mar 31, 2020				Dec 31, 2019					Sep 30, 2019
Asset Quality Ratios:
Nonperforming assets to total assets					0.25		%	0.27		%		0.32		%		0.35			%		0.37		%
Nonaccrual loans to total loans					0.34		%	0.37		%		0.44		%		0.45			%		0.39		%
Total past due loans to total loans					0.24		%	0.34		%		0.40		%		0.40			%		0.38		%
Allowance for credit losses on loans to nonaccrual loans					289.31		%	258.73		%		221.37		%		155.18			%		181.16		%
Allowance for credit losses on loans to total loans					1.00		%	0.97		%		0.97		%		0.69			%		0.71		%
Nonperforming Assets:
Commercial real estate					$431			$431				$450				$603					$684
Commercial & industrial					—			—				290				657					—
Total commercial					431			431				740				1,260					684
Residential real estate					12,792			13,850				15,423				14,297					12,531
Home equity					1,429			1,648				1,667				1,763					1,599
Other consumer					88			88				88				88					88
Total consumer					1,517			1,736				1,755				1,851					1,687
Total nonaccrual loans					14,740			16,017				17,918				17,408					14,902
Other real estate owned					—			—				28				1,109					4,142
Total nonperforming assets					$14,740			$16,017				$17,946				$18,517					$19,044
Past Due Loans (30 days or more past due):
Commercial real estate					$431			$431				$1,275				$1,433					$684
Commercial & industrial					21			3				310				1					1
Total commercial					452			434				1,585				1,434					685
Residential real estate					8,081			12,499				12,293				11,429					11,599
Home equity					1,753			1,633				2,482				2,696					1,973
Other consumer					108			106				115				130					99
Total consumer					1,861			1,739				2,597				2,826					2,072
Total past due loans					$10,394			$14,672				$16,475				$15,689					$14,356
Accruing loans 90 days or more past due					$—			$—				$—				$—					$—
Nonaccrual loans included in past due loans					$8,799			$10,553				$11,385				$11,477					$9,797

 

 

Washington Trust Bancorp, Inc. and Subsidiaries
CREDIT & ASSET QUALITY DATA
(Unaudited; Dollars in thousands)
	For the Three Months Ended																For the Nine Months Ended
	Sep 30, 2020		Jun 30, 2020			Mar 31, 2020		Dec 31, 2019			Sep 30, 2019						Sep 30, 2020			Sep 30, 2019
Nonaccrual Loan Activity:
Balance at beginning of period	$16,017		$17,918			$17,408		$14,902			$12,867						$17,408			$11,707
Additions to nonaccrual status	971		237			1,729		2,766			5,672						2,937			9,216
Loans returned to accruing status	(1,623)		(154)			(393)		—			(597)						(2,170)			(1,570)
Loans charged-off	(111)		(325)			(635)		(132)			(966)						(1,071)			(1,888)
Loans transferred to other real estate owned	—		—			(28)		—			(2,000)						(28)			(2,000)
Payments, payoffs and other changes	(514)		(1,659)			(163)		(128)			(74)						(2,336)			(563)
Balance at end of period	$14,740		$16,017			$17,918		$17,408			$14,902						$14,740			$14,902
Allowance for Credit Losses on Loans:
Balance at beginning of period	$41,441		$39,665			$27,014		$26,997			$27,398						$27,014			$27,072
Adoption of CECL accounting standard (Topic 326)	—		—			6,501		—			—						6,501			—
Provision for credit losses on loans (1)	1,300		2,084			6,773		—			400						10,157			1,575
Charge-offs	(111)		(326)			(635)		(132)			(966)						(1,072)			(1,888)
Recoveries	15		18			12		149			165						45			238
Balance at end of period	$42,645		$41,441			$39,665		$27,014			$26,997						$42,645			$26,997
Allowance for Credit Losses on Unfunded Commitments:
Balance at beginning of period	$2,155		$2,039			$293		$317			$302						$293			$289
Adoption of CECL accounting standard (Topic 326)	—		—			1,483		—			—						1,483			—
Provision for credit losses on unfunded commitments (2)	25		116			263		(24)			15						404			28
Balance at end of period (3)	$2,180		$2,155			$2,039		$293			$317						$2,180			$317

(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 Nine Months Ended
	Sep 30, 2020		Jun 30, 2020		Mar 31, 2020		Dec 31, 2019		Sep 30, 2019			Sep 30, 2020		Sep 30, 2019
Net Loan Charge-Offs (Recoveries):
Commercial real estate	$—		$19		$153		($44)		$947			$172		$947
Commercial & industrial	—		284		290		(15)		(122)			574		(132)
Total commercial	—		303		443		(59)		825			746		815
Residential real estate	99		—		—		—		—			99		486
Home equity	(4)		(5)		172		17		(36)			163		301
Other consumer	1		10		8		25		12			19		48
Total consumer	(3)		5		180		42		(24)			182		349
Total	$96		$308		$623		($17)		$801			$1,027		$1,650
Net charge-offs to average loans (annualized)	0.01	%	0.03	%	0.06	%	—	%	0.08	%		0.03	%	0.06	%

 

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	September 30, 2020							June 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	$168,106		$39		0.09	%		$187,306		$36		0.08	%		($19,200)		$3		0.01	%
Mortgage loans held for sale	61,043		468		3.05			53,443		440		3.31			7,600		28		(0.26)
Taxable debt securities	906,977		4,870		2.14			904,792		5,477		2.43			2,185		(607)		(0.29)
FHLB stock	43,839		532		4.83			51,967		654		5.06			(8,128)		(122)		(0.23)
Commercial real estate	1,652,136		11,649		2.81			1,635,431		12,580		3.09			16,705		(931)		(0.28)
Commercial & industrial	849,452		6,920		3.24			791,672		6,739		3.42			57,780		181		(0.18)
Total commercial	2,501,588		18,569		2.95			2,427,103		19,319		3.20			74,485		(750)		(0.25)
Residential real estate	1,510,621		14,047		3.70			1,497,665		14,330		3.85			12,956		(283)		(0.15)
Home equity	276,221		2,320		3.34			282,470		2,382		3.39			(6,249)		(62)		(0.05)
Other	18,706		237		5.04			18,956		229		4.86			(250)		8		0.18
Total consumer	294,927		2,557		3.45			301,426		2,611		3.48			(6,499)		(54)		(0.03)
Total loans	4,307,136		35,173		3.25			4,226,194		36,260		3.45			80,942		(1,087)		(0.20)
Total interest-earning assets	5,487,101		41,082		2.98			5,423,702		42,867		3.18			63,399		(1,785)		(0.20)
Noninterest-earning assets	377,348							365,990							11,358
Total assets	$5,864,449							$5,789,692							$74,757
Liabilities and Shareholders' Equity:
Interest-bearing demand deposits	$157,986		$83		0.21	%		$162,388		$142		0.35	%		($4,402)		($59)		(0.14)	%
NOW accounts	631,148		99		0.06			570,739		84		0.06			60,409		15		—
Money market accounts	839,032		977		0.46			821,063		1,370		0.67			17,969		(393)		(0.21)
Savings accounts	428,781		67		0.06			403,286		67		0.07			25,495		—		(0.01)
Time deposits (in-market)	730,464		3,015		1.64			746,750		3,507		1.89			(16,286)		(492)		(0.25)
Total interest-bearing in-market deposits	2,787,411		4,241		0.61			2,704,226		5,170		0.77			83,185		(929)		(0.16)
Wholesale brokered time deposits	463,756		1,291		1.11			559,822		1,942		1.40			(96,066)		(651)		(0.29)
Total interest-bearing deposits	3,251,167		5,532		0.68			3,264,048		7,112		0.88			(12,881)		(1,580)		(0.20)
FHLB advances	860,758		3,354		1.55			1,068,034		4,382		1.65			(207,276)		(1,028)		(0.10)
Junior subordinated debentures	22,681		135		2.37			22,681		171		3.03			—		(36)		(0.66)
PPPLF borrowings	180,128		159		0.35			2,565		2		0.31			177,563		157		0.04
Total interest-bearing liabilities	4,314,734		9,180		0.85			4,357,328		11,667		1.08			(42,594)		(2,487)		(0.23)
Noninterest-bearing demand deposits	842,949							745,050							97,899
Other liabilities	186,981							175,563							11,418
Shareholders' equity	519,785							511,751							8,034
Total liabilities and shareholders' equity	$5,864,449							$5,789,692							$74,757
Net interest income (FTE)			$31,902							$31,200							$702
Interest rate spread					2.13	%						2.10	%						0.03	%
Net interest margin					2.31	%						2.31	%						—	%

 

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

For the Three Months Ended	Sep 30, 2020		Jun 30, 2020		Quarter Change
Commercial loans	$248		$254		($6)
Total	$248		$254		($6)

 

Washington Trust Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCE SHEETS (FTE Basis)
(Unaudited; Dollars in thousands)
For the Nine Months Ended	September 30, 2020						September 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	$156,296		$424		0.36	%	$75,333		$1,232		2.19	%	$80,963		($808)		(1.83)	%
Mortgage loans for sale	48,570		1,193		3.28		28,379		878		4.14		20,191		315		(0.86)
Taxable debt securities	905,692		16,181		2.39		972,511		20,550		2.83		(66,819)		(4,369)		(0.44)
Nontaxable debt securities	—		—		—		602		24		5.33		(602)		(24)		(5.33)
Total securities	905,692		16,181		2.39		973,113		20,574		2.83		(67,421)		(4,393)		(0.44)
FHLB stock	49,236		1,826		4.95		48,185		2,162		6.00		1,051		(336)		(1.05)
Commercial real estate	1,623,612		40,326		3.32		1,461,736		51,702		4.73		161,876		(11,376)		(1.41)
Commercial & industrial	749,905		20,214		3.60		603,143		21,972		4.87		146,762		(1,758)		(1.27)
Total commercial	2,373,517		60,540		3.41		2,064,879		73,674		4.77		308,638		(13,134)		(1.36)
Residential real estate	1,492,589		42,660		3.82		1,358,606		41,099		4.04		133,983		1,561		(0.22)
Home equity	281,488		7,802		3.70		284,657		10,757		5.05		(3,169)		(2,955)		(1.35)
Other	19,171		716		4.99		24,017		887		4.94		(4,846)		(171)		0.05
Total consumer	300,659		8,518		3.78		308,674		11,644		5.04		(8,015)		(3,126)		(1.26)
Total loans	4,166,765		111,718		3.58		3,732,159		126,417		4.53		434,606		(14,699)		(0.95)
Total interest-earning assets	5,326,559		131,342		3.29		4,857,169		151,263		4.16		469,390		(19,921)		(0.87)
Noninterest-earning assets	357,133						292,702						64,431
Total assets	$5,683,692						$5,149,871						$533,821
Liabilities and Shareholders' Equity:
Interest-bearing demand deposits	$158,594		$725		0.61	%	$144,306		$1,959		1.82	%	$14,288		($1,234)		(1.21)	%
NOW accounts	569,283		253		0.06		462,856		228		0.07		106,427		25		(0.01)
Money market accounts	818,530		4,439		0.72		668,330		5,534		1.11		150,200		(1,095)		(0.39)
Savings accounts	402,243		195		0.06		365,911		204		0.07		36,332		(9)		(0.01)
Time deposits (in-market)	752,443		10,571		1.88		795,559		11,900		2.00		(43,116)		(1,329)		(0.12)
Total interest-bearing in-market deposits	2,701,093		16,183		0.80		2,436,962		19,825		1.09		264,131		(3,642)		(0.29)
Wholesale brokered time deposits	471,771		4,997		1.41		485,405		8,132		2.24		(13,634)		(3,135)		(0.83)
Total interest-bearing deposits	3,172,864		21,180		0.89		2,922,367		27,957		1.28		250,497		(6,777)		(0.39)
FHLB advances	1,016,943		13,501		1.77		1,019,172		20,153		2.64		(2,229)		(6,652)		(0.87)
Junior subordinated debentures	22,681		519		3.06		22,681		750		4.42		—		(231)		(1.36)
PPPLF borrowings	61,333		161		0.35		—		—		—		61,333		161		0.35
Total interest-bearing liabilities	4,273,821		35,361		1.11		3,964,220		48,860		1.65		309,601		(13,499)		(0.54)
Noninterest-bearing demand deposits	733,359						613,917						119,442
Other liabilities	164,928						98,012						66,916
Shareholders' equity	511,584						473,722						37,862
Total liabilities and shareholders' equity	$5,683,692						$5,149,871						$533,821
Net interest income (FTE)			$95,981						$102,403						($6,422)
Interest rate spread					2.18	%					2.51	%					(0.33)	%
Net interest margin					2.41	%					2.82	%					(0.41)	%

 

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

For the Nine Months Ended	Sep 30, 2020		Sep 30, 2019		Change
Commercial loans	$780		$977		($197)
Nontaxable debt securities	—		6		(6)
Total	$780		$983		($203)

 

 

Washington Trust Bancorp, Inc. and Subsidiaries
SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures
(Unaudited; Dollars in thousands, except per share amounts)
						Sep 30, 2020				Jun 30, 2020				Mar 31, 2020				Dec 31, 2019				Sep 30, 2019
Tangible Book Value per Share:
Total shareholders' equity, as reported						$527,693				$520,163				$508,597				$503,492				$497,825
Less:
Goodwill						63,909				63,909				63,909				63,909				63,909
Identifiable intangible assets, net						6,530				6,759				6,988				7,218				7,448
Total tangible shareholders' equity						$457,254				$449,495				$437,700				$432,365				$426,468
Shares outstanding, as reported						17,260				17,260				17,252				17,363				17,338
Book value per share - GAAP						$30.57				$30.14				$29.48				$29.00				$28.71
Tangible book value per share - Non-GAAP						$26.49				$26.04				$25.37				$24.90				$24.60
Tangible Equity to Tangible Assets:
Total tangible shareholders' equity						$457,254				$449,495				$437,700				$432,365				$426,468
Total assets, as reported						$5,849,792				$5,876,960				$5,620,979				$5,292,659				$5,198,878
Less:
Goodwill						63,909				63,909				63,909				63,909				63,909
Identifiable intangible assets, net						6,530				6,759				6,988				7,218				7,448
Total tangible assets						$5,779,353				$5,806,292				$5,550,082				$5,221,532				$5,127,521
Equity to assets - GAAP						9.02			%	8.85			%	9.05			%	9.51		%		9.58	%
Tangible equity to tangible assets - Non-GAAP						7.91			%	7.74			%	7.89			%	8.28		%		8.32	%
	For the Three Months Ended																For the Nine Months Ended
	Sep 30, 2020		Jun 30, 2020		Mar 31, 2020			Dec 31, 2019				Sep 30, 2019					Sep 30, 2020				Sep 30, 2019
Return on Average Tangible Assets:
Net income, as reported	$18,322		$21,040		$11,901			$15,536				$18,814					$51,263				$53,582
Total average assets, as reported	$5,864,449		$5,789,692		$5,394,948			$5,227,035				$5,181,016					$5,683,692				$5,149,871
Less average balances of:
Goodwill	63,909		63,909		63,909			63,909				63,909					63,909				63,909
Identifiable intangible assets, net	6,641		6,871		7,100			7,330				7,562					6,870				7,799
Total average tangible assets	$5,793,899		$5,718,912		$5,323,939			$5,155,796				$5,109,545					$5,612,913				$5,078,163
Return on average assets - GAAP	1.24	%	1.46	%	0.89		%	1.18			%	1.44			%		1.20		%		1.39			%
Return on average tangible assets - Non-GAAP	1.26	%	1.48	%	0.90		%	1.20			%	1.46			%		1.22		%		1.41			%
Return on Average Tangible Equity:
Net income available to common shareholders, as reported	$18,285		$21,000		$11,869			$15,502				$18,778					$51,154				$53,477
Total average equity, as reported	$519,785		$511,751		$503,124			$502,614				$490,197					$511,584				$473,722
Less average balances of:
Goodwill	63,909		63,909		63,909			63,909				63,909					63,909				63,909
Identifiable intangible assets, net	6,641		6,871		7,100			7,330				7,562					6,870				7,799
Total average tangible equity	$449,235		$440,971		$432,115			$431,375				$418,726					$440,805				$402,014
Return on average equity - GAAP	13.99	%	16.51	%	9.49		%	12.24			%	15.20			%		13.36		%		15.09			%
Return on average tangible equity - Non-GAAP	16.19	%	19.15	%	11.05		%	14.26			%	17.79			%		15.50		%		17.79			%

 

Category: Earnings

 

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SOURCE Washington Trust Bancorp, Inc.

FAQ

What were Washington Trust's earnings for Q3 2020?

Washington Trust reported net income of $18.3 million, or $1.06 per diluted share for Q3 2020.

How much did the mortgage banking revenues increase in Q3 2020 for WASH?

Mortgage banking revenues increased by $7.5 million, or 155%, year-over-year for Q3 2020.

What was the total amount of in-market deposits for WASH at the end of Q3 2020?

In-market deposits amounted to $3.7 billion at September 30, 2020.

How did Washington Trust's noninterest income change in Q3 2020?

Noninterest income decreased by $852 thousand, or 3%, to $25.5 million compared to the previous quarter.

When will Washington Trust hold its conference call to discuss Q3 results?

Washington Trust will host a conference call to discuss its third-quarter results on October 20, 2020, at 8:30 a.m. Eastern Time.