Washington Trust Reports Third Quarter 2021 Earnings

Rhea-AI Summary

Washington Trust Bancorp, Inc. (WASH) reported third quarter 2021 net income of $18.8 million, or $1.07 per diluted share, up from $17.5 million in the previous quarter. The company achieved record total assets of $6 billion and $5 billion in deposits. Key metrics include a net interest income of $36.1 million, with a net interest margin of 2.58%. Total loans were $4.3 billion, down 0.3% quarter-over-quarter. Noninterest income decreased to $20.5 million, reflecting a decline in certain revenues. Capital ratios exceed regulatory minimums, with a book value per share of $32.06.

Positive

• Net income increased by 7.4% quarter-over-quarter.
• Achieved record total assets of $6 billion and deposits of $5 billion.
• Net interest income rose by 4% to $36.1 million.
• Capital ratios exceed regulatory minimums with a total risk-based capital ratio of 13.83%.

Negative

• Total loans decreased by $13 million, or 0.3% quarter-over-quarter.
• Noninterest income dropped by $73 thousand, or 0.4%.

WESTERLY, R.I., Oct. 25, 2021 /PRNewswire/ -- Washington Trust Bancorp, Inc. (Nasdaq:WASH), parent company of The Washington Trust Company, today announced third quarter 2021 net income of $18.8 million, or $1.07 per diluted share, compared to net income of $17.5 million, or $1.00 per diluted share, for the second quarter of 2021.

"Washington Trust's third quarter results reflect the strength and stability of our balance sheet and solid contributions from all business lines," stated Edward O. Handy III, Chairman and Chief Executive Officer.  "We posted increased quarterly earnings, reported a record $6 billion in assets, and reached an all-time high $5 billion in deposits.  We recently announced our intent to open a new branch in Cumberland, RI in 2022, as we believe the key to future growth is providing customers with convenient in-person service and digital banking solutions."

Selected financial highlights for the third quarter of 2021 include:

• Returns on average equity and average assets for the third quarter were 13.37% and 1.26%, respectively, compared to 12.92% and 1.20%, respectively, in the preceding quarter.
• For both the third quarter and the second quarter of 2021, there was no provision for credit losses recognized in earnings.
• Wealth management revenues were $10.5 million for the third quarter, up by $27 thousand, from the preceding quarter, as higher quarterly asset-based revenues were partially offset by seasonal declines in transaction-based revenues.
• Mortgage banking revenues were $6.4 million for the third quarter, up by $379 thousand, or 6%, from the preceding quarter.
• Total loans amounted to $4.3 billion, down by $13 million, or 0.3%, from the end of the preceding quarter and up by $4 million, or 0.1%, from a year ago. Total loans excluding Paycheck Protection Program ("PPP") loans amounted to $4.2 billion, up by $56 million, or 1%, from the end of the preceding quarter and up by $144 million, or 4%, from a year ago.
• In-market deposits (total deposits less out-of-market wholesale brokered deposits) amounted to a record $4.3 billion at September 30, 2021, up by $310 million, or 8%, from the end of the preceding quarter, and up by $602 million, or 16%, from a year ago.

Net Interest Income

Net interest income was $36.1 million for the third quarter of 2021, up by $1.3 million, or 4%, from the second quarter of 2021.  The net interest margin was 2.58% for the third quarter, up by 3 basis points from the preceding quarter. Both net interest income and the net interest margin benefited from accelerated net deferred fee amortization associated with PPP loans that were forgiven by the Small Business Administration. In the third quarter of 2021, accelerated net deferred fee amortization on PPP loans amounted to $2.0 million, or 13 basis points, compared to $1.0 million, or 7 basis points, in the preceding quarter.  Additionally, there was no commercial loan prepayment fee income in the third quarter of 2021, compared to $717 thousand, or 5 basis points, of commercial prepayment fee income in the preceding quarter.  Excluding the impact of these items for both periods, the net interest margin was 2.45% in the third quarter of 2021, up from 2.42% in the preceding quarter.  Linked quarter changes included:

• Average interest-earning assets increased by $69 million, with an increase of $42 million in average loans and an increase in average investment securities of $16 million. The yield on interest-earning assets for the third quarter was 2.85%, unchanged from the preceding quarter. Excluding the impact of accelerated net deferred fee amortization on PPP loans and commercial loan prepayment fee income for both periods, the yield on interest-earning assets for the third quarter was 2.57%, down by 2 basis points from 2.59% in the preceding quarter, mainly due to a lower yield on the average balances of residential real estate loans.
• Average interest-bearing liabilities increased by $29 million, with an increase of $108 million in average in-market deposits, partially offset by a decrease of $79 million in average wholesale funding balances. The cost of interest-bearing liabilities for the third quarter of 2021 was 0.35%, down by 3 basis points from the preceding quarter, reflecting the impact of lower market interest rates.

Noninterest Income
Noninterest income totaled $20.5 million for the third quarter of 2021, down by $73 thousand, or 0.4%, from the second quarter of 2021.  Linked quarter changes included:

• Wealth management revenues amounted to $10.5 million in the third quarter of 2021, up by $27 thousand, or 0.3%, on a linked quarter basis. This included an increase in asset-based revenues of $233 thousand, or 2%, and a decrease in transaction-based revenues of $206 thousand, or 47%, from the preceding quarter. The linked quarter decline in transaction-based revenues was mainly due to tax reporting and preparation fees, which are generally concentrated in the first half of the year.
   
  Wealth management assets under administration ("AUA") amounted to $7.4 billion at September 30, 2021, up by $2 million from June 30, 2021.  The increase reflected net client asset inflows of $7 million in the third quarter of 2021, partially offset by net investment depreciation of $5 million.  The average balance of AUA for the third quarter of 2021 increased by approximately $249 million, or 3%, from the average balance for the preceding quarter.
   
• Mortgage banking revenues totaled $6.4 million for the third quarter of 2021, up by $379 thousand, or 6%, from the second quarter of 2021, as changes in fair value of mortgage loan commitments were partially offset by a $2.8 million, or 33%, decrease in realized gains on sales of loans. The decrease in realized gains on sales of loans reflected a lower volume of loans sold to the secondary market, which was partially offset by a higher sales yield. Mortgage loans sold to the secondary market amounted to $174 million in the third quarter of 2021, down by $117 million, or 40%, from the preceding quarter.
   
• Loan related derivative income was $728 thousand in the third quarter of 2021, down by $447 thousand from the preceding quarter, reflecting a lower volume of commercial borrower interest rate swap transactions.

Noninterest Expense
Noninterest expense totaled $32.5 million for the third quarter of 2021, down by $492 thousand, or 1%, from the second quarter of 2021.  In the second quarter of 2021, debt prepayment penalty expense of $895 thousand was recognized associated with paying off higher-yielding FHLB advances.  There was no such debt prepayment penalty expense recognized in the third quarter of 2021.  Excluding the impact of debt prepayment penalty expense, noninterest expense was up by $403 thousand, or 1%, including an increase of $108 thousand in FDIC deposit insurance costs and modest increases across a variety of expense categories.  Salaries and employee benefits expense, our largest component of noninterest expense, amounted to $22.2 million for the third quarter of 2021, up by $80 thousand, or 0.4%, from the preceding quarter as increases in performance-based compensation accruals were partially offset by volume-related decreases in mortgage originator compensation expense.

Income Tax
Income tax expense totaled $5.3 million for the third quarter of 2021, up by $444 thousand from the preceding quarter, reflecting a higher level of pre-tax income.  The effective tax rate for the third quarter of 2021 was 22.1%, compared to 21.8% 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 $1.0 billion at September 30, 2021, down by $7 million, or 1%, from June 30, 2021, reflecting routine pay-downs on mortgage-backed securities and calls of debt securities, partially offset by purchases of U.S. government agency and U.S. government-sponsored debt securities, including mortgage-backed securities.  Purchases of debt securities in the third quarter 2021 totaled $117 million, with a weighted average yield of 1.58%.  Securities represented 17% of total assets at September 30, 2021, compared to 18% of total assets at June 30, 2021.

Loans
Total loans amounted to $4.3 billion at September 30, 2021, down by $13 million, from the end of the preceding quarter.  Linked quarter changes included:

• Commercial loans decreased by $90 million, or 3.7%, from June 30, 2021, which included a net reduction in PPP loans of $70 million. Excluding PPP loans, commercial loans decreased by $20 million, or 1%, from June 30, 2021, reflecting payoffs and pay-downs of $103 million and lower line utilization of $17 million, partially offset by commercial loan originations and advances totaling $100 million.
• Residential real estate loans increased by $82 million, or 5%, from June 30, 2021, reflecting a higher proportion of loans originated for portfolio.
• The consumer loan portfolio decreased by $6 million, or 2% from the balance at June 30, 2021.

Deposits and Borrowings
Total deposits amounted to $5.1 billion at September 30, 2021, up by $332 million, or 7%, from the end of the preceding quarter.  Included in total deposits are out-of-market wholesale brokered time deposits, which increased by $23 million, or 3%, from June 30, 2021.  Excluding wholesale brokered time deposits, in-market deposits at September 30, 2021 were up by $310 million, or 8%, from the end of the preceding quarter.  This increase included seasonal inflows of various institutional and governmental depositors based on their underlying business cycles, as well as growth in promotional time certificates of deposit.

FHLB advances totaled $223 million at September 30, 2021, down by $186 million from June 30, 2021.

Asset Quality
Total nonaccrual loans amounted to $11.0 million, or 0.26% of total loans, at September 30, 2021, compared to $10.5 million, or 0.24% of total loans, at June 30, 2021.

Total past due loans amounted to $9.5 million, or 0.22% of total loans, at September 30, 2021, compared to $8.5 million, or 0.20% of total loans, at June 30, 2021.

Total troubled debt restructured loans ("TDR") amounted to $9.7 million as of September 30, 2021, down by $1.1 million from June 30, 2021.

As of September 30, 2021, active loan payment deferral modifications, or "deferments", in response to the COVID-19 pandemic remain on 5 loans totaling $38.0 million, or 1% of the outstanding balance of total loans excluding PPP loan balances.  This is down from active deferments on 22 loans totaling $93.4 million, or 2% of the outstanding balance of total loans excluding PPP loan balances, as of June 30, 2021.

The allowance for credit losses ("ACL") on loans amounted to $41.7 million, or 0.97% of total loans, at September 30, 2021, compared to $41.9 million, or 0.97% of total loans, at June 30, 2021.  The ACL on unfunded commitments, included in other liabilities on the Consolidated Balance Sheets, amounted to $2.3 million at September 30, 2021, unchanged from the balance at June 30, 2021.

For both the third quarter and the second quarter of 2021, there was no provision for credit losses recognized in earnings.  The provision for credit losses and the related ACL reflected our current estimate of forecasted economic conditions and continued stable asset quality metrics.  In the third quarter of 2021, net charge-offs of $168 thousand were recognized, compared to $258 thousand in the preceding quarter.

Capital and Dividends
Total shareholders' equity was $555.3 million at September 30, 2021, up by $7.5 million from June 30, 2021.  This increase included net income of $18.8 million, partially offset by $9.1 million in dividend declarations, as well as a decrease of $3.0 million in the accumulated other comprehensive income component of shareholders' equity, largely due to a temporary decrease in the fair value of available for sale debt securities.

Capital levels at September 30, 2021 exceeded the regulatory minimum levels to be considered well capitalized, with a total risk-based capital ratio of 13.83% at September 30, 2021, compared to 13.65% at June 30, 2021.

Book value per share was $32.06 at September 30, 2021, compared to $31.63 at June 30, 2021.

The Board of Directors declared a quarterly dividend of 52 cents per share for the quarter ended September 30, 2021.  The dividend was paid on October 8, 2021 to shareholders of record on October 1, 2021.

Conference Call
Washington Trust will host a conference call to discuss its third quarter results, business highlights and outlook on Tuesday, October 26, 2021 at 8:30 a.m. (Eastern Time).  Individuals may dial in to the call at 1-844-378-6480.  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 10161085; the audio replay will be available through November 9, 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 December 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; changes in consumer behavior due to changing political, business and economic conditions, 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 collectability, increases in defaults and charge-off rates; changes related to the discontinuation and replacement of LIBOR; 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, 2020, 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, 2021		Jun 30, 2021		Mar 31, 2021		Dec 31, 2020		Sep 30, 2020
Assets:
Cash and due from banks	$297,039		$127,743		$166,960		$194,143		$204,113
Short-term investments	3,349		4,463		3,783		8,125		7,902
Mortgage loans held for sale, at fair value	48,705		31,492		77,450		61,614		68,095
Available for sale debt securities, at fair value	1,045,833		1,052,577		948,094		894,571		913,850
Federal Home Loan Bank stock, at cost	15,094		22,757		24,772		30,285		37,469
Loans:
Total loans	4,286,404		4,299,800		4,194,666		4,195,990		4,282,047
Less: allowance for credit losses on loans	41,711		41,879		42,137		44,106		42,645
Net loans	4,244,693		4,257,921		4,152,529		4,151,884		4,239,402
Premises and equipment, net	28,488		29,031		28,953		28,870		27,711
Operating lease right-of-use assets	27,518		28,329		28,761		29,521		29,861
Investment in bank-owned life insurance	92,974		92,355		84,749		84,193		83,623
Goodwill	63,909		63,909		63,909		63,909		63,909
Identifiable intangible assets, net	5,631		5,853		6,079		6,305		6,530
Other assets	129,410		135,550		133,350		159,749		167,327
Total assets	$6,002,643		$5,851,980		$5,719,389		$5,713,169		$5,849,792
Liabilities:
Deposits:
Noninterest-bearing deposits	$950,974		$901,801		$932,999		$832,287		$840,444
Interest-bearing deposits	4,107,168		3,823,858		3,616,143		3,546,066		3,445,249
Total deposits	5,058,142		4,725,659		4,549,142		4,378,353		4,285,693
Federal Home Loan Bank advances	222,592		408,592		466,912		593,859		713,868
Payment Protection Program Lending Facility	—		—		—		—		105,746
Junior subordinated debentures	22,681		22,681		22,681		22,681		22,681
Operating lease liabilities	29,810		30,558		30,974		31,717		32,012
Other liabilities	114,100		116,634		116,081		152,364		162,099
Total liabilities	5,447,325		5,304,124		5,185,790		5,178,974		5,322,099
Shareholders' Equity:
Common stock	1,085		1,085		1,085		1,085		1,085
Paid-in capital	126,265		125,442		124,882		125,610		124,768
Retained earnings	447,566		437,927		429,598		418,246		408,773
Accumulated other comprehensive (loss) income	(18,128)		(15,128)		(20,006)		(7,391)		(3,403)
Treasury stock, at cost	(1,470)		(1,470)		(1,960)		(3,355)		(3,530)
Total shareholders' equity	555,318		547,856		533,599		534,195		527,693
Total liabilities and shareholders' equity	$6,002,643		$5,851,980		$5,719,389		$5,713,169		$5,849,792

 

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, 2021		Jun 30, 2021		Mar 31, 2021		Dec 31, 2020		Sep 30, 2020			Sep 30, 2021		Sep 30, 2020
Interest income:
Interest and fees on loans	$35,691		$34,820		$34,159		$34,487		$34,925			$104,670		$110,938
Interest on mortgage loans held for sale	298		405		441		569		468			1,144		1,193
Taxable interest on debt securities	3,683		3,441		3,242		3,869		4,870			10,366		16,181
Dividends on Federal Home Loan Bank stock	95		110		133		414		532			338		1,826
Other interest income	56		32		33		35		39			121		424
Total interest and dividend income	39,823		38,808		38,008		39,374		40,834			116,639		130,562
Interest expense:
Deposits	2,789		2,961		3,663		4,632		5,532			9,413		21,180
Federal Home Loan Bank advances	872		1,001		1,380		2,305		3,354			3,253		13,501
Junior subordinated debentures	92		92		94		122		135			278		519
Other interest expense	—		—		—		72		159			—		161
Total interest expense	3,753		4,054		5,137		7,131		9,180			12,944		35,361
Net interest income	36,070		34,754		32,871		32,243		31,654			103,695		95,201
Provision for credit losses	—		—		(2,000)		1,781		1,325			(2,000)		10,561
Net interest income after provision for credit losses	36,070		34,754		34,871		30,462		30,329			105,695		84,640
Noninterest income:
Wealth management revenues	10,455		10,428		9,895		9,206		8,954			30,778		26,248
Mortgage banking revenues	6,373		5,994		11,927		14,077		12,353			24,294		33,300
Card interchange fees	1,265		1,316		1,133		1,148		1,161			3,714		3,139
Service charges on deposit accounts	673		635		609		767		598			1,917		1,975
Loan related derivative income	728		1,175		467		173		1,264			2,370		3,818
Income from bank-owned life insurance	618		607		556		569		567			1,781		1,922
Other income	408		438		1,387		1,787		571			2,233		1,313
Total noninterest income	20,520		20,593		25,974		27,727		25,468			67,087		71,715
Noninterest expense:
Salaries and employee benefits	22,162		22,082		21,527		22,075		21,892			65,771		60,824
Outsourced services	3,294		3,217		3,200		2,950		3,160			9,711		8,944
Net occupancy	2,134		2,042		2,128		2,083		2,012			6,304		5,940
Equipment	977		975		994		1,025		934			2,946		2,806
Legal, audit and professional fees	767		678		597		1,014		1,252			2,042		2,733
FDIC deposit insurance costs	482		374		345		330		392			1,201		1,488
Advertising and promotion	559		560		222		640		384			1,341		829
Amortization of intangibles	223		225		226		226		228			674		688
Debt prepayment penalties	—		895		3,335		1,413		—			4,230		—
Other expenses	1,922		1,964		2,139		2,353		2,090			6,025		7,023
Total noninterest expense	32,520		33,012		34,713		34,109		32,344			100,245		91,275
Income before income taxes	24,070		22,335		26,132		24,080		23,453			72,537		65,080
Income tax expense	5,319		4,875		5,661		5,514		5,131			15,855		13,817
Net income	$18,751		$17,460		$20,471		$18,566		$18,322			$56,682		$51,263
Net income available to common shareholders	$18,697		$17,408		$20,415		$18,524		$18,285			$56,520		$51,154
Weighted average common shares outstanding:
Basic	17,320		17,314		17,275		17,264		17,260			17,303		17,287
Diluted	17,444		17,436		17,431		17,360		17,317			17,451		17,369
Earnings per common share:
Basic	$1.08		$1.01		$1.18		$1.07		$1.06			$3.27		$2.96
Diluted	$1.07		$1.00		$1.17		$1.07		$1.06			$3.24		$2.95
Cash dividends declared per share	$0.52		$0.52		$0.52		$0.52		$0.51			$1.56		$1.53

 

Washington Trust Bancorp, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited; Dollars and shares in thousands, except per share amounts)
	Sep 30, 2021		Jun 30, 2021		Mar 31, 2021		Dec 31, 2020		Sep 30, 2020
Share and Equity Related Data:
Book value per share	$32.06		$31.63		$30.83		$30.94		$30.57
Tangible book value per share - Non-GAAP (1)	$28.05		$27.60		$26.79		$26.87		$26.49
Market value per share	$52.98		$51.35		$51.63		$44.80		$30.66
Shares issued at end of period	17,363		17,363		17,363		17,363		17,363
Shares outstanding at end of period	17,320		17,320		17,306		17,265		17,260
Capital Ratios (2):
Tier 1 risk-based capital	13.01	%	12.82	%	12.99	%	12.61	%	12.23	%
Total risk-based capital	13.83	%	13.65	%	13.85	%	13.51	%	13.09	%
Tier 1 leverage ratio	9.12	%	9.07	%	9.11	%	8.95	%	8.77	%
Common equity tier 1	12.47	%	12.28	%	12.43	%	12.06	%	11.69	%
Balance Sheet Ratios:
Equity to assets	9.25	%	9.36	%	9.33	%	9.35	%	9.02	%
Tangible equity to tangible assets - Non-GAAP (1)	8.19	%	8.27	%	8.21	%	8.22	%	7.91	%
Loans to deposits (3)	84.9	%	90.8	%	93.0	%	96.2	%	100.5	%

 

												For the Nine Months Ended
	For the Three Months Ended
	Sep 30, 2021		Jun 30, 2021		Mar 31, 2021		Dec 31, 2020		Sep 30, 2020			Sep 30, 2021		Sep 30, 2020
Performance Ratios (4):
Net interest margin (5)	2.58	%	2.55	%	2.51	%	2.39	%	2.31	%		2.55	%	2.41	%
Return on average assets (net income divided by      average assets)	1.26	%	1.20	%	1.45	%	1.28	%	1.24	%		1.30	%	1.20	%
Return on average tangible assets - Non-GAAP (1)	1.27	%	1.22	%	1.47	%	1.30	%	1.26	%		1.32	%	1.22	%
Return on average equity (net income available for      common shareholders divided by average equity)	13.37	%	12.92	%	15.55	%	13.96	%	13.99	%		13.93	%	13.36	%
Return on average tangible equity - Non-GAAP (1)	15.29	%	14.84	%	17.91	%	16.10	%	16.19	%		15.98	%	15.50	%
Efficiency ratio (6)	57.5	%	59.6	%	59.0	%	56.9	%	56.6	%		58.7	%	54.7	%

(1)	See the section labeled "Supplemental Information - Calculation of Non-GAAP Financial Measures" at the end of this document.
(2)	Estimated for September 30, 2021 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, 2021		Jun 30, 2021		Mar 31, 2021		Dec 31, 2020		Sep 30, 2020			Sep 30, 2021		Sep 30, 2020
Wealth Management Results
Wealth Management Revenues:
Asset-based revenues	$10,224		$9,991		$9,583		$9,066		$8,786			$29,798		$25,297
Transaction-based revenues	231		437		312		140		168			980		951
Total wealth management revenues	$10,455		$10,428		$9,895		$9,206		$8,954			$30,778		$26,248
Assets Under Administration (AUA):
Balance at beginning of period	$7,441,519		$7,049,226		$6,866,737		$6,395,652		$6,138,845			$6,866,737		$6,235,801
Net investment appreciation (depreciation) & income	(4,830)		368,383		208,953		540,189		335,209			572,506		234,076
Net client asset inflows (outflows)	6,707		23,910		(26,464)		(69,104)		(78,402)			4,153		(74,225)
Balance at end of period	$7,443,396		$7,441,519		$7,049,226		$6,866,737		$6,395,652			$7,443,396		$6,395,652
Percentage of AUA that are managed assets	91%		92%		91%		91%		90%			91%		90%
Mortgage Banking Results
Mortgage Banking Revenues:
Realized gains on loan sales, net (1)	$5,750		$8,562		$13,745		$13,394		$14,280			$28,057		$28,614
Changes in fair value, net (2)	467		(2,543)		(1,888)		813		(1,555)			(3,964)		5,185
Loan servicing fee income, net (3)	156		(25)		70		(130)		(372)			201		(499)
Total mortgage banking revenues	$6,373		$5,994		$11,927		$14,077		$12,353			$24,294		$33,300
Residential Mortgage Loan Originations:
Originations for retention in portfolio (4)	$205,293		$244,821		$131,791		$134,002		$132,726			$581,905		$368,118
Originations for sale to secondary market (5)	190,702		244,562		309,325		312,226		377,137			744,589		859,680
Total mortgage loan originations	$395,995		$489,383		$441,116		$446,228		$509,863			$1,326,494		$1,227,798
Residential Mortgage Loans Sold:
Sold with servicing rights retained	$108,445		$235,280		$226,645		$240,104		$317,920			$570,370		$609,363
Sold with servicing rights released (5)	65,416		55,278		65,374		78,072		36,250			186,068		212,222
Total mortgage loans sold	$173,861		$290,558		$292,019		$318,176		$354,170			$756,438		$821,585

(1)	Includes gains on loan sales, commission income on loans originated for others, servicing right gains, and gains (losses) on forward loan commitments.
(2)	Represents fair value changes on mortgage loans held for sale and forward loan commitments.
(3)	Represents loan servicing fee income, net of servicing right amortization and valuation adjustments.
(4)	Includes the full commitment amount of homeowner construction loans.
(5)	Includes brokered loans (loans originated for others).

 

Washington Trust Bancorp, Inc. and Subsidiaries
END OF PERIOD LOAN COMPOSITION
(Unaudited; Dollars in thousands)
	Sep 30, 2021		Jun 30, 2021		Mar 31, 2021		Dec 31, 2020		Sep 30, 2020
Loans:
Commercial real estate (1)	$1,661,785		$1,669,624		$1,618,540		$1,633,024		$1,665,745
Commercial & industrial	682,774		764,509		840,585		817,408		822,269
Total commercial	2,344,559		2,434,133		2,459,125		2,450,432		2,488,014
Residential real estate (2)	1,672,364		1,590,389		1,457,490		1,467,312		1,506,726
Home equity	249,874		254,802		256,799		259,185		268,551
Other	19,607		20,476		21,252		19,061		18,756
Total consumer	269,481		275,278		278,051		278,246		287,307
Total loans	$4,286,404		$4,299,800		$4,194,666		$4,195,990		$4,282,047

(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, 2021							December 31, 2020
	Count		Balance		% of Total			Count		Balance		% of Total
Commercial Real Estate Portfolio Segmentation:
Multi-family dwelling	130		$488,500		29	%		137		$524,874		32	%
Retail	127		353,103		21			136		339,569		21
Office	62		229,846		14			73		290,756		18
Hospitality	39		199,379		12			40		157,720		10
Industrial and warehouse	37		143,597		9			28		97,055		6
Healthcare	15		136,615		8			15		109,321		7
Commercial mixed use	20		39,293		2			22		42,405		3
Other	36		71,452		5			38		71,324		3
Commercial real estate loans	466		$1,661,785		100	%		489		$1,633,024		100	%
Commercial & Industrial Portfolio Segmentation:
Healthcare and social assistance	138		$184,906		27	%		253		$200,217		24	%
Owner occupied and other real estate	193		76,104		11			268		74,309		9
Manufacturing	78		64,447		9			146		88,802		11
Accommodation and food services	162		57,513		8			271		47,020		6
Retail	92		49,741		7			192		63,895		8
Educational services	33		49,566		7			53		64,969		8
Entertainment and recreation	54		33,756		5			91		29,415		4
Finance and insurance	65		33,129		5			106		26,244		3
Information	18		25,536		4			32		28,394		3
Transportation and warehousing	32		20,637		3			42		24,061		3
Professional, scientific and technical	93		12,073		2			265		39,295		5
Public administration	19		6,308		1			26		23,319		3
Other	394		69,058		11			772		107,468		13
Commercial & industrial loans	1,371		$682,774		100	%		2,517		$817,408		100	%

 

Washington Trust Bancorp, Inc. and Subsidiaries
SUPPLEMENTAL LOAN PORTFOLIO INFORMATION
(Unaudited; Dollars in thousands)
	September 30, 2021							December 31, 2020
	Count		Balance		% of Total			Count		Balance		% of Total
PPP Loans By Industry:
Accommodation and food services	111		$24,560		32	%		209		$23,678		12	%
Healthcare and social assistance	71		15,684		20			173		47,354		24
Professional, scientific and technical	61		6,078		8			220		20,031		10
Manufacturing	25		5,662		7			89		23,321		12
Entertainment and recreation	27		2,597		3			61		3,386		2
Educational services	15		2,512		3			32		9,681		5
Retail	37		2,222		3			134		12,107		6
Information	8		2,130		3			20		2,478		1
Owner occupied and other real estate	33		1,412		2			115		9,241		5
Public administration	3		417		1			4		483		—
Finance and insurance	11		405		1			55		2,000		1
Transportation and warehousing	10		360		—			21		2,059		1
Other	218		13,344		17			573		43,961		21
Total PPP loans (included in the commercial & industrial loan portfolio)	630		$77,383		100	%		1,706		$199,780		100	%
Average PPP loan size			$123							$117
Net unamortized fees on PPP loans			$2,618							$3,893

 

	September 30, 2021							June 30, 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	5		$37,955		2	%		14		$87,363		5	%
Commercial & industrial deferments	—		—		—			—		—		—
Total commercial deferments	5		37,955		2			14		87,363		5
Residential real estate deferments	—		—		—			8		6,027		—
Total consumer deferments	—		—		—			—		—		—
Total loan deferments	5		$37,955		1	%		22		$93,390		2	%

(1)	Percent of respective outstanding portfolio segment balance excluding balance of PPP loans for each respective period.

 

Washington Trust Bancorp, Inc. and Subsidiaries
END OF PERIOD LOAN AND DEPOSIT COMPOSITION
(Unaudited; Dollars in thousands)
	September 30, 2021					December 31, 2020
	Balance		% of Total			Balance		% of Total
Commercial Real Estate Loans by Property Location:
Connecticut	$632,339		38	%		$649,919		40	%
Rhode Island	467,182		28			431,133		26
Massachusetts	462,456		28			468,947		29
Subtotal	1,561,977		94			1,549,999		95
All other states	99,808		6			83,025		5
Total commercial real estate loans	$1,661,785		100	%		$1,633,024		100	%
Residential Real Estate Loans by Property Location:
Massachusetts	$1,161,977		69	%		$994,800		68	%
Rhode Island	357,445		21			331,713		23
Connecticut	131,832		8			122,102		8
Subtotal	1,651,254		99			1,448,615		99
All other states	21,110		1			18,697		1
Total residential real estate loans	$1,672,364		100	%		$1,467,312		100	%

 

	Sep 30, 2021		Jun 30, 2021		Mar 31, 2021		Dec 31, 2020		Sep 30, 2020
Deposits:
Noninterest-bearing demand deposits	$950,974		$901,801		$932,999		$832,287		$840,444
Interest-bearing demand deposits	238,317		174,165		171,571		174,290		170,198
NOW accounts	817,937		774,693		745,376		698,706		644,909
Money market accounts	1,046,324		941,511		950,413		910,167		877,536
Savings accounts	540,306		524,155		511,759		466,507		439,383
Time deposits (in-market)	709,288		677,061		701,524		704,855		729,058
In-market deposits	4,303,146		3,993,386		4,013,642		3,786,812		3,701,528
Wholesale brokered time deposits	754,996		732,273		535,500		591,541		584,165
Total deposits	$5,058,142		$4,725,659		$4,549,142		$4,378,353		$4,285,693

 

Washington Trust Bancorp, Inc. and Subsidiaries
CREDIT & ASSET QUALITY DATA
(Unaudited; Dollars in thousands)
	Sep 30, 2021		Jun 30, 2021		Mar 31, 2021		Dec 31, 2020		Sep 30, 2020
Asset Quality Ratios:
Nonperforming assets to total assets	0.18	%	0.18	%	0.23	%	0.23	%	0.25	%
Nonaccrual loans to total loans	0.26	%	0.24	%	0.31	%	0.31	%	0.34	%
Total past due loans to total loans	0.22	%	0.20	%	0.26	%	0.30	%	0.24	%
Allowance for credit losses on loans to nonaccrual loans	380.02	%	399.57	%	324.56	%	334.21	%	289.31	%
Allowance for credit losses on loans to total loans	0.97	%	0.97	%	1.00	%	1.05	%	1.00	%
Nonperforming Assets:
Commercial real estate	$—		$—		$—		$—		$431
Commercial & industrial	—		539		—		—		—
Total commercial	—		539		—		—		431
Residential real estate	10,321		8,926		11,748		11,981		12,792
Home equity	655		1,016		1,147		1,128		1,429
Other consumer	—		—		88		88		88
Total consumer	655		1,016		1,235		1,216		1,517
Total nonaccrual loans	10,976		10,481		12,983		13,197		14,740
Other real estate owned	—		—		—		—		—
Total nonperforming assets	$10,976		$10,481		$12,983		$13,197		$14,740
Past Due Loans (30 days or more past due):
Commercial real estate	$—		$—		$—		$265		$431
Commercial & industrial	2		540		1		3		21
Total commercial	2		540		1		268		452
Residential real estate	8,698		6,656		9,661		10,339		8,081
Home equity	824		1,231		1,131		1,667		1,753
Other consumer	24		28		119		118		108
Total consumer	848		1,259		1,250		1,785		1,861
Total past due loans	$9,548		$8,455		$10,912		$12,392		$10,394
Accruing loans 90 days or more past due	$—		$—		$—		$—		$—
Nonaccrual loans included in past due loans	$6,930		$5,773		$8,356		$8,521		$8,799
Troubled Debt Restructurings:
Accruing TDRs	$7,979		$8,541		$12,358		$13,340		$5,709
Nonaccrual TDRs	1,732		2,278		1,935		2,345		2,894
Total TDRs	$9,711		$10,819		$14,293		$15,685		$8,603

 

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, 2021		Jun 30, 2021		Mar 31, 2021		Dec 31, 2020		Sep 30, 2020			Sep 30, 2021		Sep 30, 2020
Nonaccrual Loan Activity:
Balance at beginning of period	$10,481		$12,983		$13,197		$14,740		$16,017			$13,197		$17,408
Additions to nonaccrual status	2,583		537		734		707		971			3,854		2,937
Loans returned to accruing status	—		(874)		(3)		(1,112)		(1,623)			(877)		(2,170)
Loans charged-off	(249)		(317)		(64)		(246)		(111)			(630)		(1,071)
Loans transferred to other real estate owned	—		—		—		(285)		—			—		(28)
Payments, payoffs and other changes	(1,839)		(1,848)		(881)		(607)		(514)			(4,568)		(2,336)
Balance at end of period	$10,976		$10,481		$12,983		$13,197		$14,740			$10,976		$14,740
Allowance for Credit Losses on Loans:
Balance at beginning of period	$41,879		$42,137		$44,106		$42,645		$41,441			$44,106		$27,014
Adoption of CECL accounting standard (Topic 326)	—		—		—		—		—			—		6,501
Provision for credit losses on loans (1)	—		—		(1,951)		1,579		1,300			(1,951)		10,157
Charge-offs	(249)		(317)		(64)		(245)		(111)			(630)		(1,072)
Recoveries	81		59		46		127		15			186		45
Balance at end of period	$41,711		$41,879		$42,137		$44,106		$42,645			$41,711		$42,645
Allowance for Credit Losses on Unfunded Commitments:
Balance at beginning of period	$2,333		$2,333		$2,382		$2,180		$2,155			$2,382		$293
Adoption of CECL accounting standard (Topic 326)	—		—		—		—		—			—		1,483
Provision for credit losses on unfunded commitments (1)	—		—		(49)		202		25			(49)		404
Balance at end of period (2)	$2,333		$2,333		$2,333		$2,382		$2,180			$2,333		$2,180

(1)	Included in provision for credit losses in the Consolidated Statements of Income.
(2)	Included in other liabilities in the Consolidated Balance Sheets.

 

	For the Three Months Ended											For the Nine Months Ended
	Sep 30, 2021		Jun 30, 2021		Mar 31, 2021		Dec 31, 2020		Sep 30, 2020			Sep 30, 2021		Sep 30, 2020
Net Loan Charge-Offs (Recoveries):
Commercial real estate	$—		$—		$—		$133		$—			$—		$172
Commercial & industrial	(2)		302		1		(12)		—			301		574
Total commercial	(2)		302		1		121		—			301		746
Residential real estate	52		(47)		17		(20)		99			22		99
Home equity	110		(4)		(2)		9		(4)			104		163
Other consumer	8		7		2		8		1			17		19
Total consumer	118		3		—		17		(3)			121		182
Total	$168		$258		$18		$118		$96			$444		$1,027
Net charge-offs to average loans (annualized)	0.02	%	0.02	%	—	%	0.01	%	0.01	%		0.01	%	0.03	%

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 changes in fair value on mortgage loans held for sale are excluded from the average balance and yield calculations.  Nonaccrual loans, as well as interest recognized on these loans, are included in amounts presented for loans.

Washington Trust Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCE SHEETS (FTE Basis)
(Unaudited; Dollars in thousands)
For the Three Months Ended	September 30, 2021							June 30, 2021							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	$179,574		$56		0.12	%		$146,313		$32		0.09	%		$33,261		$24		0.03	%
Mortgage loans held for sale	41,261		298		2.87			57,473		405		2.83			(16,212)		(107)		0.04
Taxable debt securities	1,045,997		3,683		1.40			1,029,933		3,441		1.34			16,064		242		0.06
FHLB stock	18,909		95		1.99			25,128		110		1.76			(6,219)		(15)		0.23
Commercial real estate	1,648,972		12,209		2.94			1,639,515		11,701		2.86			9,457		508		0.08
Commercial & industrial	736,073		7,886		4.25			807,598		8,113		4.03			(71,525)		(227)		0.22
Total commercial	2,385,045		20,095		3.34			2,447,113		19,814		3.25			(62,068)		281		0.09
Residential real estate	1,623,913		13,511		3.30			1,514,487		12,920		3.42			109,426		591		(0.12)
Home equity	252,938		2,043		3.20			257,257		2,056		3.21			(4,319)		(13)		(0.01)
Other	19,822		247		4.94			20,979		253		4.84			(1,157)		(6)		0.10
Total consumer	272,760		2,290		3.33			278,236		2,309		3.33			(5,476)		(19)		—
Total loans	4,281,718		35,896		3.33			4,239,836		35,043		3.32			41,882		853		0.01
Total interest-earning assets	5,567,459		40,028		2.85			5,498,683		39,031		2.85			68,776		997		—
Noninterest-earning assets	351,678							334,742							16,936
Total assets	$5,919,137							$5,833,425							$85,712
Liabilities and Shareholders' Equity:
Interest-bearing demand deposits	$206,237		$51		0.10	%		$182,465		$49		0.11	%		$23,772		$2		(0.01)	%
NOW accounts	782,963		129		0.07			760,294		119		0.06			22,669		10		0.01
Money market accounts	1,014,204		586		0.23			951,194		552		0.23			63,010		34		—
Savings accounts	530,956		70		0.05			518,072		72		0.06			12,884		(2)		(0.01)
Time deposits (in-market)	672,012		1,695		1.00			686,590		1,889		1.10			(14,578)		(194)		(0.10)
Total interest-bearing in-market deposits	3,206,372		2,531		0.31			3,098,615		2,681		0.35			107,757		(150)		(0.04)
Wholesale brokered time deposits	722,233		258		0.14			662,541		280		0.17			59,692		(22)		(0.03)
Total interest-bearing deposits	3,928,605		2,789		0.28			3,761,156		2,961		0.32			167,449		(172)		(0.04)
FHLB advances	317,766		872		1.09			456,661		1,001		0.88			(138,895)		(129)		0.21
Junior subordinated debentures	22,681		92		1.61			22,681		92		1.63			—		—		(0.02)
PPPLF borrowings	—		—		—			—		—		—			—		—		—
Total interest-bearing liabilities	4,269,052		3,753		0.35			4,240,498		4,054		0.38			28,554		(301)		(0.03)
Noninterest-bearing demand deposits	952,676							912,295							40,381
Other liabilities	142,562							140,108							2,454
Shareholders' equity	554,847							540,524							14,323
Total liabilities and shareholders' equity	$5,919,137							$5,833,425							$85,712
Net interest income (FTE)			$36,275							$34,977							$1,298
Interest rate spread					2.50	%						2.47	%						0.03	%
Net interest margin					2.58	%						2.55	%						0.03	%

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

For the Three Months Ended	Sep 30, 2021		Jun 30, 2021		Change
Commercial loans	$205		$223		($18)
Total	$205		$223		($18)

 

Washington Trust Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCE SHEETS (FTE Basis)
(Unaudited; Dollars in thousands)
For the Nine Months Ended	September 30, 2021						September 30, 2020						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	$160,350		$121		0.10	%	$156,296		$424		0.36	%	$4,054		($303)		(0.26)	%
Mortgage loans for sale	53,307		1,144		2.87		48,570		1,193		3.28		4,737		(49)		(0.41)
Taxable debt securities	997,741		10,366		1.39		905,692		16,181		2.39		92,049		(5,815)		(1.00)
FHLB stock	24,265		338		1.86		49,236		1,826		4.95		(24,971)		(1,488)		(3.09)
Commercial real estate	1,638,200		35,269		2.88		1,623,612		40,326		3.32		14,588		(5,057)		(0.44)
Commercial & industrial	794,091		23,865		4.02		749,905		20,214		3.60		44,186		3,651		0.42
Total commercial	2,432,291		59,134		3.25		2,373,517		60,540		3.41		58,774		(1,406)		(0.16)
Residential real estate	1,531,529		39,248		3.43		1,492,589		42,660		3.82		38,940		(3,412)		(0.39)
Home equity	255,959		6,220		3.25		281,488		7,802		3.70		(25,529)		(1,582)		(0.45)
Other	20,301		742		4.89		19,171		716		4.99		1,130		26		(0.10)
Total consumer	276,260		6,962		3.37		300,659		8,518		3.78		(24,399)		(1,556)		(0.41)
Total loans	4,240,080		105,344		3.32		4,166,765		111,718		3.58		73,315		(6,374)		(0.26)
Total interest-earning assets	5,475,743		117,313		2.86		5,326,559		131,342		3.29		149,184		(14,029)		(0.43)
Noninterest-earning assets	346,514						357,133						(10,619)
Total assets	$5,822,257						$5,683,692						$138,565
Liabilities and Shareholders' Equity:
Interest-bearing demand deposits	$190,979		$196		0.14	%	$158,594		$725		0.61	%	$32,385		($529)		(0.47)	%
NOW accounts	747,385		350		0.06		569,283		253		0.06		178,102		97		—
Money market accounts	958,812		1,852		0.26		818,530		4,439		0.72		140,282		(2,587)		(0.46)
Savings accounts	513,110		211		0.05		402,243		195		0.06		110,867		16		(0.01)
Time deposits (in-market)	687,278		5,822		1.13		752,443		10,571		1.88		(65,165)		(4,749)		(0.75)
Total interest-bearing in-market deposits	3,097,564		8,431		0.36		2,701,093		16,183		0.80		396,471		(7,752)		(0.44)
Wholesale brokered time deposits	655,165		982		0.20		471,771		4,997		1.41		183,394		(4,015)		(1.21)
Total interest-bearing deposits	3,752,729		9,413		0.34		3,172,864		21,180		0.89		579,865		(11,767)		(0.55)
FHLB advances	438,213		3,253		0.99		1,016,943		13,501		1.77		(578,730)		(10,248)		(0.78)
Junior subordinated debentures	22,681		278		1.64		22,681		519		3.06		—		(241)		(1.42)
PPPLF borrowings	—		—		—		61,333		161		0.35		(61,333)		(161)		(0.35)
Total interest-bearing liabilities	4,213,623		12,944		0.41		4,273,821		35,361		1.11		(60,198)		(22,417)		(0.70)
Noninterest-bearing demand deposits	918,760						733,359						185,401
Other liabilities	147,244						164,928						(17,684)
Shareholders' equity	542,630						511,584						31,046
Total liabilities and shareholders' equity	$5,822,257						$5,683,692						$138,565
Net interest income (FTE)			$104,369						$95,981						$8,388
Interest rate spread					2.45	%					2.18	%					0.27	%
Net interest margin					2.55	%					2.41	%					0.14	%

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

For the Nine Months Ended	Sep 30, 2021		Sep 30, 2020		Change
Commercial loans	$674		$780		($106)
Total	$674		$780		($106)

 

Washington Trust Bancorp, Inc. and Subsidiaries
SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures
(Unaudited; Dollars in thousands, except per share amounts)
	Sep 30, 2021		Jun 30, 2021		Mar 31, 2021		Dec 31, 2020		Sep 30, 2020
Tangible Book Value per Share:
Total shareholders' equity, as reported	$555,318		$547,856		$533,599		$534,195		$527,693
Less:
Goodwill	63,909		63,909		63,909		63,909		63,909
Identifiable intangible assets, net	5,631		5,853		6,079		6,305		6,530
Total tangible shareholders' equity	$485,778		$478,094		$463,611		$463,981		$457,254
Shares outstanding, as reported	17,320		17,320		17,306		17,265		17,260
Book value per share - GAAP	$32.06		$31.63		$30.83		$30.94		$30.57
Tangible book value per share - Non-      GAAP	$28.05		$27.60		$26.79		$26.87		$26.49
Tangible Equity to Tangible Assets:
Total tangible shareholders' equity	$485,778		$478,094		$463,611		$463,981		$457,254
Total assets, as reported	$6,002,643		$5,851,980		$5,719,389		$5,713,169		$5,849,792
Less:
Goodwill	63,909		63,909		63,909		63,909		63,909
Identifiable intangible assets, net	5,631		5,853		6,079		6,305		6,530
Total tangible assets	$5,933,103		$5,782,218		$5,649,401		$5,642,955		$5,779,353
Equity to assets - GAAP	9.25	%	9.36	%	9.33	%	9.35	%	9.02	%
Tangible equity to tangible assets - Non-      GAAP	8.19	%	8.27	%	8.21	%	8.22	%	7.91	%

 

	For the Three Months Ended											For the Nine Months Ended
	Sep 30, 2021		Jun 30, 2021		Mar 31, 2021		Dec 31, 2020		Sep 30, 2020			Sep 30, 2021		Sep 30, 2020
Return on Average Tangible Assets:
Net income, as reported	$18,751		$17,460		$20,471		$18,566		$18,322			$56,682		$51,263
Total average assets, as reported	$5,919,137		$5,833,425		$5,711,931		$5,768,263		$5,864,449			$5,822,257		$5,683,692
Less average balances of:
Goodwill	63,909		63,909		63,909		63,909		63,909			63,909		63,909
Identifiable intangible assets, net	5,739		5,963		6,189		6,414		6,641			5,962		6,870
Total average tangible assets	$5,849,489		$5,763,553		$5,641,833		$5,697,940		$5,793,899			$5,752,386		$5,612,913
Return on average assets - GAAP	1.26	%	1.20	%	1.45	%	1.28	%	1.24	%		1.30	%	1.20	%
Return on average tangible assets - Non-      GAAP	1.27	%	1.22	%	1.47	%	1.30	%	1.26	%		1.32	%	1.22	%
Return on Average Tangible Equity:
Net income available to common      shareholders, as reported	$18,697		$17,408		$20,415		$18,524		$18,285			$56,520		$51,154
Total average equity, as reported	$554,847		$540,524		$532,271		$527,969		$519,785			$542,630		$511,584
Less average balances of:
Goodwill	63,909		63,909		63,909		63,909		63,909			63,909		63,909
Identifiable intangible assets, net	5,739		5,963		6,189		6,414		6,641			5,962		6,870
Total average tangible equity	$485,199		$470,652		$462,173		$457,646		$449,235			$472,759		$440,805
Return on average equity - GAAP	13.37	%	12.92	%	15.55	%	13.96	%	13.99	%		13.93	%	13.36	%
Return on average tangible equity - Non-      GAAP	15.29	%	14.84	%	17.91	%	16.10	%	16.19	%		15.98	%	15.50	%

Category: Earnings

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SOURCE Washington Trust Bancorp, Inc.

FAQ

What are Washington Trust's Q3 2021 earnings results?

Washington Trust reported a net income of $18.8 million, or $1.07 per diluted share for Q3 2021.

What is the outlook for Washington Trust Bancorp after the latest earnings?

The company is focusing on expanding its services with a new branch opening in Cumberland, RI in 2022.

How did Washington Trust perform compared to Q2 2021?

In Q3 2021, Washington Trust's net income rose from $17.5 million in Q2 2021 to $18.8 million.

What is the current dividend declared by Washington Trust?

The Board of Directors declared a quarterly dividend of 52 cents per share for Q3 2021.

What is the trend in Washington Trust's loan and deposit growth?

Total deposits increased by $332 million, or 7%, while total loans decreased by $13 million, or 0.3% in Q3 2021.