WESTERLY, R.I., Jan. 26, 2022 /PRNewswire/ -- Washington Trust Bancorp, Inc. (Nasdaq:WASH), parent company of The Washington Trust Company, today announced fourth quarter 2021 net income of $20.2 million, or $1.15 per diluted share, compared to net income of $18.8 million, or $1.07 per diluted share, for the third quarter of 2021.  Net income for the year ended December 31, 2021 totaled $76.9 million, or $4.39 per diluted share, compared to $69.8 million, or $4.00 per diluted share, reported for the prior year.

(PRNewsfoto/Washington Trust Bancorp, Inc.)

"Washington Trust reported strong fourth quarter and full-year 2021 results," stated Edward O. Handy III, Washington Trust Chairman and Chief Executive Officer.  "We achieved record wealth management revenues, originated an all-time high volume of residential mortgages, reached a record level of in-market deposits and maintained healthy commercial loan activity.  Solid business line performances and a strong balance sheet have positioned us well as we enter 2022."

Selected financial highlights for the fourth quarter and full-year 2021 include:

  • Returns on average equity and average assets for the fourth quarter were 14.34% and 1.36%, respectively, compared to 13.37% and 1.26%, respectively, for the preceding quarter. Full-year returns on average equity and average assets for 2021 were 14.03% and 1.32%, respectively, compared to 13.51% and 1.22%, respectively, for the prior year.

  • A negative provision for credit losses (or a benefit) of $2.8 million was recognized in earnings in the fourth quarter of 2021, compared to no provision for credit losses in the preceding quarter. For the full-year 2021, a negative provision for credit losses (or a benefit) of $4.8 million was recognized in earnings, compared to a positive provision for credit losses (or a charge) of $12.3 million in 2020.

  • Wealth management assets under administration ("AUA") amounted to an all-time high $7.8 billion at December 31, 2021. Fourth quarter and full-year wealth management revenues reached record highs of $10.5 million and $41.3 million, respectively.

  • Residential real estate loan originations totaled $363 million in the fourth quarter, bringing the full-year residential loan origination total to an all-time high of $1.69 billion.

  • Total loans excluding Paycheck Protection Program ("PPP") loans amounted to $4.2 billion, up by $26 million, or 1%, from the end of the preceding quarter and up by $256 million, or 6%, from a year ago.

  • In-market deposits (total deposits less out-of-market wholesale brokered deposits) amounted to a record $4.5 billion at December 31, 2021, up by $162 million, or 4%, from the end of the preceding quarter, and up by $678 million, or 18%, from a year ago.

Net Interest Income

Net interest income was $37.7 million for the fourth quarter of 2021, up by $1.7 million, or 5%, from the third quarter of 2021.  The net interest margin was 2.71% for the fourth quarter, up by 13 basis points from the preceding quarter.  Both net interest income and the net interest margin benefited from commercial loan prepayment fee income, as well as accelerated net deferred fee amortization associated with PPP loans that were forgiven by the Small Business Administration.  Commercial loan prepayment fee income amounted to $2.2 million, or 16 basis points, in the fourth quarter of 2021.  There was no commercial loan prepayment fee income in the preceding quarter.  In the fourth quarter of 2021, accelerated net deferred fee amortization on PPP loans amounted to $1.2 million, or 9 basis points, compared to $2.0 million, or 13 basis points, in the preceding quarter.  Excluding the impact of these items for both periods, the net interest margin was 2.46% in the fourth quarter of 2021, up from 2.45% in the preceding quarter.  Linked quarter changes included:

  • Average interest-earning assets decreased by $8 million, largely reflecting a decline in average loan balances, partially offset by increases in average investment securities and cash and due from banks balances. The yield on interest-earning assets for the fourth quarter was 2.97%, up by 12 basis points from the preceding quarter. Excluding the impact of commercial loan prepayment fee income and accelerated net deferred fee amortization on PPP loans for both periods, the yield on interest-earning assets was essentially unchanged.

  • Average interest-bearing liabilities decreased by $54 million, due to a decrease of $257 million in average wholesale funding balances, partially offset by an increase of $203 million in average in-market deposits. The cost of interest-bearing liabilities for the fourth quarter of 2021 was 0.34%, down by 1 basis point from the preceding quarter.

Noninterest Income

Noninterest income totaled $20.3 million for the fourth quarter of 2021, down by $213 thousand, or 1%, from the third quarter of 2021.  Linked quarter changes included:

  • Wealth management revenues amounted to $10.5 million in the fourth quarter of 2021, up by $49 thousand, or 0.5%, on a linked quarter basis. This included an increase in asset-based revenues of $193 thousand, or 2%, and a decrease in transaction-based revenues of $144 thousand, or 62%, from the preceding quarter. The linked quarter decline in transaction-based revenues was concentrated in annuity commission fee income.
      
    Wealth management AUA amounted to $7.8 billion at December 31, 2021, up by $341 million from September 30, 2021. The increase reflected net investment appreciation of $359 million, partially offset by net client asset outflows of $18 million in the fourth quarter of 2021. The average balance of AUA for the fourth quarter of 2021 increased by approximately $86 million, or 1%, from the average balance for the preceding quarter.
      
  • Mortgage banking revenues totaled $4.3 million for the fourth quarter of 2021, down by $2.0 million, or 32%, from the third quarter of 2021, largely due to changes in fair value of mortgage loan commitments. Realized gains on sales of loans decreased by a $55 thousand, or 1%, as a lower sales yield on loans sold to the secondary market was essentially offset by a higher sales volume. Mortgage loans sold to the secondary market amounted to $197 million in the fourth quarter of 2021, up by $23 million, or 13%, from the preceding quarter.
         
  • Loan related derivative income was $2.0 million in the fourth quarter of 2021, 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 $1.1 million in the fourth quarter of 2021, up by $526 thousand, or 85%, from the preceding quarter. The fourth quarter included the recognition of $526 thousand in non-taxable income associated with the receipt of life insurance proceeds.

Noninterest Expense

Noninterest expense totaled $35.2 million for the fourth quarter of 2021, up by $2.7 million, or 8%, from the third quarter of 2021.  Included in noninterest expense for the fourth quarter of 2021 was debt prepayment penalty expense of $2.7 million, resulting from the payoff of higher-yielding FHLB advances.  There was no debt prepayment penalty expense recognized in the third quarter of 2021.  Excluding the impact of debt prepayment penalty expense, noninterest expense was essentially unchanged from the prior quarter.

Salaries and employee benefits expense, the largest component of noninterest expense, amounted to $21.5 million for the fourth quarter of 2021, down by $638 thousand, or 3%, from the preceding quarter, largely reflecting adjustments to performance-based compensation accruals.  The decrease in salaries and employee benefits expense was essentially offset by an increase of $291 thousand in outsourced services expense, due to a higher volume of commercial borrower loan related derivative transactions, as well as modest increases across a variety of other expense categories.

Income Tax

Income tax expense totaled $5.5 million for the fourth quarter of 2021, up by $143 thousand from the preceding quarter, largely due to a higher level of pre-tax income.  The effective tax rate for the fourth quarter of 2021 was 21.3%, compared to 22.1% in the preceding quarter.  Based on current federal and applicable state income statutes, the Corporation currently expects its full-year 2022 effective tax rate to be approximately 21.5%.

Investment Securities

The securities portfolio totaled $1.0 billion at December 31, 2021, down by $3 million, from September 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 fourth quarter 2021 totaled $80 million, with a weighted average yield of 1.78%.  Securities represented 18% of total assets at December 31, 2021, compared to 17% of total assets at September 30, 2021.

Loans

Total loans amounted to $4.3 billion at December 31, 2021, down by $13 million, from the end of the preceding quarter.  Linked quarter changes included:

  • Commercial loans decreased by $64 million, or 3%, from September 30, 2021, which included a net reduction in PPP loans of $39 million. Excluding PPP loans, commercial loans decreased by $25 million, or 1%, from September 30, 2021, reflecting payoffs and pay-downs of approximately $195 million, partially offset by commercial loan originations and advances of approximately $170 million.

  • Residential real estate loans increased by $55 million, or 3%, from September 30, 2021. In the fourth quarter of 2021, residential real estate loans originated for portfolio amounted to $174 million.

  • The consumer loan portfolio decreased by $4 million, or 2%, from the balance at September 30, 2021.

Deposits and Borrowings

At December 31, 2021, in-market deposits, which exclude wholesale brokered time deposits, amounted to $4.5 billion, up by $162 million, or 4%, from the end of the preceding quarter, reflecting growth across all deposit categories.  Wholesale brokered time deposits amounted to $515 million, down by $240 million, or 32%, from September 30, 2021.  Total deposits amounted to $5.0 billion at December 31, 2021, down by $78 million, or 2%, from the end of the preceding quarter.

FHLB advances totaled $145 million at December 31, 2021, down by $78 million from September 30, 2021.  In the fourth quarter of 2021, higher-yielding FHLB advances of approximately $45 million were prepaid.

Asset Quality

Total nonaccrual loans amounted to $14.2 million, or 0.33% of total loans, at December 31, 2021, compared to $11.0 million, or 0.26% of total loans, at September 30, 2021.

Total past due loans amounted to $10.4 million, or 0.24% of total loans, at December 31, 2021, compared to $9.5 million, or 0.22% of total loans, at September 30, 2021.

As of December 31, 2021, active loan payment deferral modifications, or "deferments", in response to the COVID-19 pandemic remain on one commercial real estate relationship with two loans totaling $9.7 million, or 0.2% of the outstanding balance of total loans excluding PPP loan balances.  This is down from active deferments on five loans totaling $38.0 million, or 1% of the outstanding balance of total loans excluding PPP loan balances, as of September 30, 2021.

Total troubled debt restructured loans ("TDR") amounted to $19.1 million as of December 31, 2021, up by $9.4 million from September 30, 2021, due to the restructuring of one commercial real estate relationship with two loans that did not qualify for additional TDR accounting relief.

The allowance for credit losses ("ACL") on loans amounted to $39.1 million, or 0.91% of total loans, at December 31, 2021, compared to $41.7 million, or 0.97% of total loans, at September 30, 2021.  The ACL on unfunded commitments, included in other liabilities on the Consolidated Balance Sheets, amounted to $2.2 million at December 31, 2021, compared to $2.3 million at September 30, 2021.

In the fourth quarter of 2021, there was a negative $2.8 million provision for credit losses (or a benefit) recognized in earnings. There was no provision for credit losses recognized in the preceding quarter.  The reduction in the provision for credit losses and the related ACL reflected a continued downward trend in loan loss rates, as well as improvements in forecasted economic conditions and relatively stable asset quality metrics.  In the fourth quarter of 2021, net recoveries of $27 thousand were recognized, compared to net charge-offs of $168 thousand in the preceding quarter.  Full-year 2021 net charge-offs were $417 thousand, compared to $1.1 million in the prior year.

Capital and Dividends

Total shareholders' equity was $564.8 million at December 31, 2021, up by $9.5 million from September 30, 2021.  This increase included net income of $20.2 million, partially offset by $9.4 million in dividend declarations, as well as a decrease of $1.9 million in the accumulated other comprehensive income component of shareholders' equity.  The decrease in the accumulated other comprehensive income component of shareholders' equity included a temporary decrease in the fair value of available for sale securities, partially offset by a $4.5 million increase associated with the annual remeasurement of pension liabilities.  The increase to shareholders' equity associated with the annual remeasurement of pension liabilities was largely due to an increase in the discount rate used to measure the present value of pension plan liabilities, resulting from a rise in market interest rates in 2021.

Capital levels at December 31, 2021 exceeded the regulatory minimum levels to be considered well capitalized, with a total risk-based capital ratio of 14.01% at December 31, 2021, compared to 13.83% at September 30, 2021.

Book value per share was $32.59 at December 31, 2021, compared to $32.06 at September 30, 2021.

The Board of Directors declared a quarterly dividend of 54 cents per share for the quarter ended December 31, 2021, representing an increase of 2 cents per share from the preceding quarter.  The dividend was paid on January 7, 2022 to shareholders of record on January 3, 2022.  Full-year 2021 dividends totaled $2.10 per share, an increase of 5 cents per share from full-year 2020 dividends of $2.05 per share.

Conference Call

Washington Trust will host a conference call to discuss its fourth quarter results, business highlights and outlook on Thursday, January 27, 2022 at 8:30 a.m. (Eastern Time).  Individuals may dial in to the call at 1-844-200-6205.  An audio replay of the call will be available, shortly after the conclusion of the call, by dialing 1-866-813-9403 and entering the Replay PIN Number 665774; the audio replay will be available through February 26, 2022.  Also, a webcast of the call will be posted in the Investor Relations section of Washington Trust's website, http://ir.washtrust.com, and will be available through March 31, 2022.

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: ongoing disruptions due to 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, including concerns about inflation, or legislative or regulatory initiatives; the possibility that future credit losses are higher than currently expected due to changes in economic assumptions or adverse economic developments; volatility in national and international financial markets; interest rate changes or 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; changes in loan demand and 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)








Dec 31,

2021

Sep 30,

2021

Jun 30,

2021

Mar 31,

2021

Dec 31,

2020

Assets:






Cash and due from banks

$175,259

$297,039

$127,743

$166,960

$194,143

Short-term investments

3,234

3,349

4,463

3,783

8,125

Mortgage loans held for sale, at fair value

40,196

48,705

31,492

77,450

61,614

Available for sale debt securities, at fair value

1,042,859

1,045,833

1,052,577

948,094

894,571

Federal Home Loan Bank stock, at cost

13,031

15,094

22,757

24,772

30,285

Loans:






Total loans

4,272,925

4,286,404

4,299,800

4,194,666

4,195,990

Less: allowance for credit losses on loans

39,088

41,711

41,879

42,137

44,106

Net loans

4,233,837

4,244,693

4,257,921

4,152,529

4,151,884

Premises and equipment, net

28,908

28,488

29,031

28,953

28,870

Operating lease right-of-use assets

26,692

27,518

28,329

28,761

29,521

Investment in bank-owned life insurance

92,592

92,974

92,355

84,749

84,193

Goodwill

63,909

63,909

63,909

63,909

63,909

Identifiable intangible assets, net

5,414

5,631

5,853

6,079

6,305

Other assets

125,196

129,410

135,550

133,350

159,749

Total assets

$5,851,127

$6,002,643

$5,851,980

$5,719,389

$5,713,169

Liabilities:






Deposits:






Noninterest-bearing deposits

$945,229

$950,974

$901,801

$932,999

$832,287

Interest-bearing deposits

4,034,822

4,107,168

3,823,858

3,616,143

3,546,066

Total deposits

4,980,051

5,058,142

4,725,659

4,549,142

4,378,353

Federal Home Loan Bank advances

145,000

222,592

408,592

466,912

593,859

Junior subordinated debentures

22,681

22,681

22,681

22,681

22,681

Operating lease liabilities

29,010

29,810

30,558

30,974

31,717

Other liabilities

109,577

114,100

116,634

116,081

152,364

Total liabilities

5,286,319

5,447,325

5,304,124

5,185,790

5,178,974

Shareholders' Equity:






Common stock

1,085

1,085

1,085

1,085

1,085

Paid-in capital

126,511

126,265

125,442

124,882

125,610

Retained earnings

458,310

447,566

437,927

429,598

418,246

Accumulated other comprehensive (loss) income

(19,981)

(18,128)

(15,128)

(20,006)

(7,391)

Treasury stock, at cost

(1,117)

(1,470)

(1,470)

(1,960)

(3,355)

Total shareholders' equity

564,808

555,318

547,856

533,599

534,195

Total liabilities and shareholders' equity

$5,851,127

$6,002,643

$5,851,980

$5,719,389

$5,713,169

 

Washington Trust Bancorp, Inc. and Subsidiaries

CONSOLIDATED STATEMENTS OF INCOME

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


For the Three Months Ended


For the Twelve Months Ended


Dec 31,

2021

Sep 30,

2021

Jun 30,

2021

Mar 31,

2021

Dec 31,

2020


Dec 31,

2021

Dec 31,

2020

Interest income:









Interest and fees on loans

$36,882

$35,691

$34,820

$34,159

$34,487


$141,552

$145,425

Interest on mortgage loans held for sale

387

298

405

441

569


1,531

1,762

Taxable interest on debt securities

3,929

3,683

3,441

3,242

3,869


14,295

20,050

Dividends on Federal Home Loan Bank stock

98

95

110

133

414


436

2,240

Other interest income

60

56

32

33

35


181

459

Total interest and dividend income

41,356

39,823

38,808

38,008

39,374


157,995

169,936

Interest expense:









Deposits

2,977

2,789

2,961

3,663

4,632


12,390

25,812

Federal Home Loan Bank advances

547

872

1,001

1,380

2,305


3,800

15,806

Junior subordinated debentures

92

92

92

94

122


370

641

Other interest expense

—

—

—

—

72


—

233

Total interest expense

3,616

3,753

4,054

5,137

7,131


16,560

42,492

Net interest income

37,740

36,070

34,754

32,871

32,243


141,435

127,444

Provision for credit losses

(2,822)

—

—

(2,000)

1,781


(4,822)

12,342

Net interest income after provision for credit losses

40,562

36,070

34,754

34,871

30,462


146,257

115,102

Noninterest income:









Wealth management revenues

10,504

10,455

10,428

9,895

9,206


41,282

35,454

Mortgage banking revenues

4,332

6,373

5,994

11,927

14,077


28,626

47,377

Card interchange fees

1,282

1,265

1,316

1,133

1,148


4,996

4,287

Service charges on deposit accounts

766

673

635

609

767


2,683

2,742

Loan related derivative income

1,972

728

1,175

467

173


4,342

3,991

Income from bank-owned life insurance

1,144

618

607

556

569


2,925

2,491

Other income

307

408

438

1,387

1,787


2,540

3,100

Total noninterest income

20,307

20,520

20,593

25,974

27,727


87,394

99,442

Noninterest expense:









Salaries and employee benefits

21,524

22,162

22,082

21,527

22,075


87,295

82,899

Outsourced services

3,585

3,294

3,217

3,200

2,950


13,296

11,894

Net occupancy

2,145

2,134

2,042

2,128

2,083


8,449

8,023

Equipment

959

977

975

994

1,025


3,905

3,831

Legal, audit and professional fees

817

767

678

597

1,014


2,859

3,747

FDIC deposit insurance costs

391

482

374

345

330


1,592

1,818

Advertising and promotion

502

559

560

222

640


1,843

1,469

Amortization of intangibles

216

223

225

226

226


890

914

Debt prepayment penalties

2,700

—

895

3,335

1,413


6,930

1,413

Other expenses

2,380

1,922

1,964

2,139

2,353


8,405

9,376

Total noninterest expense

35,219

32,520

33,012

34,713

34,109


135,464

125,384

Income before income taxes

25,650

24,070

22,335

26,132

24,080


98,187

89,160

Income tax expense

5,462

5,319

4,875

5,661

5,514


21,317

19,331

Net income

$20,188

$18,751

$17,460

$20,471

$18,566


$76,870

$69,829










Net income available to common shareholders

$20,128

$18,697

$17,408

$20,415

$18,524


$76,648

$69,678










Weighted average common shares outstanding:









  Basic

17,328

17,320

17,314

17,275

17,264


17,310

17,282

  Diluted

17,469

17,444

17,436

17,431

17,360


17,455

17,402

Earnings per common share:









  Basic

$1.16

$1.08

$1.01

$1.18

$1.07


$4.43

$4.03

  Diluted

$1.15

$1.07

$1.00

$1.17

$1.07


$4.39

$4.00










Cash dividends declared per share

$0.54

$0.52

$0.52

$0.52

$0.52


$2.10

$2.05

 

Washington Trust Bancorp, Inc. and Subsidiaries

SELECTED FINANCIAL HIGHLIGHTS

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




Dec 31,

2021

Sep 30,

2021

Jun 30,

2021

Mar 31,

2021

Dec 31,

2020

Share and Equity Related Data:






Book value per share

$32.59

$32.06

$31.63

$30.83

$30.94

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

$28.59

$28.05

$27.60

$26.79

$26.87

Market value per share

$56.37

$52.98

$51.35

$51.63

$44.80

Shares issued at end of period

17,363

17,363

17,363

17,363

17,363

Shares outstanding at end of period

17,331

17,320

17,320

17,306

17,265







Capital Ratios (2) :






Tier 1 risk-based capital

13.24%

13.01%

12.82%

12.99%

12.61%

Total risk-based capital

14.01%

13.83%

13.65%

13.85%

13.51%

Tier 1 leverage ratio

9.36%

9.12%

9.07%

9.11%

8.95%

Common equity tier 1

12.71%

12.47%

12.28%

12.43%

12.06%







Balance Sheet Ratios:






Equity to assets

9.65%

9.25%

9.36%

9.33%

9.35%

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

8.57%

8.19%

8.27%

8.21%

8.22%

Loans to deposits (3)

85.8%

84.9%

90.8%

93.0%

96.2%

 




For the Twelve Months Ended


For the Three Months Ended



Dec 31,

2021

Sep 30,

2021

Jun 30,

2021

Mar 31,

2021

Dec 31,

2020


Dec 31,

2021

Dec 31,

2020

Performance Ratios (4) :









Net interest margin (5)

2.71%

2.58%

2.55%

2.51%

2.39%


2.59%

2.40%

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

1.36%

1.26%

1.20%

1.45%

1.28%


1.32%

1.22%

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

1.38%

1.27%

1.22%

1.47%

1.30%


1.33%

1.24%

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

14.34%

13.37%

12.92%

15.55%

13.96%


14.03%

13.51%

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

16.39%

15.29%

14.84%

17.91%

16.10%


16.09%

15.66%

Efficiency ratio (6)

60.7%

57.5%

59.6%

59.0%

56.9%


59.2%

55.3%



(1)

See the section labeled "Supplemental Information - Calculation of Non-GAAP Financial Measures" at the end of this document.

(2)

Estimated for December 31, 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 Twelve Months Ended


Dec 31,
2021

Sep 30,
2021

Jun 30,
2021

Mar 31,
2021

Dec 31,
2020


Dec 31,
2021

Dec 31,
2020

Wealth Management Results









Wealth Management Revenues:









Asset-based revenues

$10,417

$10,224

$9,991

$9,583

$9,066


$40,215

$34,363

Transaction-based revenues

87

231

437

312

140


1,067

1,091

Total wealth management revenues

$10,504

$10,455

$10,428

$9,895

$9,206


$41,282

$35,454










Assets Under Administration (AUA):









Balance at beginning of period

$7,443,396

$7,441,519

$7,049,226

$6,866,737

$6,395,652


$6,866,737

$6,235,801

Net investment appreciation (depreciation) &
   income

358,796

(4,830)

368,383

208,953

540,189


931,302

774,265

Net client asset inflows (outflows)

(17,981)

6,707

23,910

(26,464)

(69,104)


(13,828)

(143,329)

Balance at end of period

$7,784,211

$7,443,396

$7,441,519

$7,049,226

$6,866,737


$7,784,211

$6,866,737










Percentage of AUA that are managed assets

92%

91%

92%

91%

91%


92%

91%










Mortgage Banking Results









Mortgage Banking Revenues:









Realized gains on loan sales, net (1)

$5,695

$5,750

$8,562

$13,745

$13,394


$33,752

$42,008

Changes in fair value, net (2)

(1,594)

467

(2,543)

(1,888)

813


(5,558)

5,998

Loan servicing fee income, net (3)

231

156

(25)

70

(130)


432

(629)

Total mortgage banking revenues

$4,332

$6,373

$5,994

$11,927

$14,077


$28,626

$47,377










Residential Mortgage Loan Originations:









Originations for retention in portfolio (4)

$174,438

$205,293

$244,821

$131,791

$134,002


$756,343

$502,120

Originations for sale to secondary market (5)

188,735

190,702

244,562

309,325

312,226


933,324

1,171,906

Total mortgage loan originations

$363,173

$395,995

$489,383

$441,116

$446,228


$1,689,667

$1,674,026










Residential Mortgage Loans Sold:









Sold with servicing rights retained

$21,180

$108,445

$235,280

$226,645

$240,104


$591,550

$849,467

Sold with servicing rights released (5)

175,818

65,416

55,278

65,374

78,072


361,886

290,294

Total mortgage loans sold

$196,998

$173,861

$290,558

$292,019

$318,176


$953,436

$1,139,761



(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)




Dec 31,
2021

Sep 30,
2021

Jun 30,
2021

Mar 31,
2021

Dec 31,
2020

Loans:






Commercial real estate (1)

$1,639,062

$1,661,785

$1,669,624

$1,618,540

$1,633,024

Commercial & industrial

641,555

682,774

764,509

840,585

817,408

Total commercial

2,280,617

2,344,559

2,434,133

2,459,125

2,450,432







Residential real estate (2)

1,726,975

1,672,364

1,590,389

1,457,490

1,467,312







Home equity

247,697

249,874

254,802

256,799

259,185

Other

17,636

19,607

20,476

21,252

19,061

Total consumer

265,333

269,481

275,278

278,051

278,246

Total loans

$4,272,925

$4,286,404

$4,299,800

$4,194,666

$4,195,990



(1)

Commercial real estate loans consist of commercial mortgages and construction and development loans.  Commercial mortgages are loans secured by income producing property.

(2)

Residential real estate loans consist of mortgage and homeowner construction loans secured by one- to four-family residential properties.

 


December 31, 2021


December 31, 2020


Count

Balance

% of Total


Count

Balance

% of Total

Commercial Real Estate Portfolio Segmentation:








Multi-family dwelling

127

$474,229

29%


137

$524,874

32%

Retail

121

389,487

24


136

339,569

21

Office

57

216,602

13


73

290,756

18

Hospitality

31

184,990

11


40

157,720

10

Industrial and warehouse

35

137,254

8


28

97,055

6

Healthcare

13

128,189

8


15

109,321

7

Commercial mixed use

20

38,978

2


22

42,405

2

Other

36

69,333

5


38

71,324

4

Commercial real estate loans

440

$1,639,062

100%


489

$1,633,024

100%









Commercial & Industrial Portfolio Segmentation:








Healthcare and social assistance

101

$174,376

27%


253

$200,217

24%

Owner occupied and other real estate

185

72,957

11


268

74,309

9

Manufacturing

65

55,341

9


146

88,802

11

Educational services

28

52,211

8


53

64,969

8

Retail

79

47,290

7


192

63,895

8

Transportation and warehousing

31

35,064

5


42

24,061

3

Entertainment and recreation

37

32,087

5


91

29,415

4

Finance and insurance

59

31,279

5


106

26,244

3

Accommodation and food services

114

28,320

4


271

47,020

6

Information

14

25,045

4


32

28,394

3

Professional, scientific and technical

69

8,912

1


265

39,295

5

Public administration

16

5,441

1


26

23,319

3

Other

281

73,232

13


772

107,468

13

Commercial & industrial loans

1,079

$641,555

100%


2,517

$817,408

100%

 

Washington Trust Bancorp, Inc. and Subsidiaries

SUPPLEMENTAL LOAN PORTFOLIO INFORMATION

(Unaudited; Dollars in thousands)










December 31, 2021


December 31, 2020


Count

Balance

% of Total


Count

Balance

% of Total

PPP Loans By Industry:








Accommodation and food services

69

$13,687

36%


209

$23,678

12%

Healthcare and social assistance

36

6,926

18


173

47,354

24

Professional, scientific and technical

34

2,464

6


220

20,031

10

Information

6

2,034

5


20

2,478

1

Retail

22

1,698

4


134

12,107

6

Entertainment and recreation

12

1,693

4


61

3,386

2

Manufacturing

11

1,274

3


89

23,321

12

Owner occupied and other real estate

20

709

2


115

9,241

5

Educational services

8

312

1


32

9,681

5

Finance and insurance

6

299

1


55

2,000

1

Transportation and warehousing

9

138

—


21

2,059

1

Public administration

1

21

—


4

483

—

Other

113

6,764

20


573

43,961

21

Total PPP loans (included in the commercial & industrial loan portfolio)

347

$38,019

100%


1,706

$199,780

100%









Average PPP loan size


$110




$117


Net unamortized fees on PPP loans


$1,267




$3,893


 










December 31, 2021


September 30, 2021


Count

Balance

% of Outstanding Balance, excl PPP loans (1)


Count

Balance

% of Outstanding Balance, excl PPP loans (1)

Active Loan Deferments by Portfolio:








Commercial real estate deferments

2

$9,720

1%


5

$37,955

2%

Commercial & industrial deferments

—

—

—


—

—

—

Total commercial deferments

2

9,720

1


5

37,955

2









Residential real estate deferments

—

—

—


—

—

—









Total consumer deferments

—

—

—


—

—

—

Total active loan deferments

2

$9,720

—%


5

$37,955

1%



(1)

Percent of respective outstanding portfolio segment balance excluding balance of PPP loans.

 

Washington Trust Bancorp, Inc. and Subsidiaries

END OF PERIOD LOAN AND DEPOSIT COMPOSITION

(Unaudited; Dollars in thousands)








December 31, 2021


December 31, 2020


Balance

% of Total


Balance

% of Total

Commercial Real Estate Loans by Property Location:






Connecticut

$643,182

39%


$649,919

40%

Massachusetts

464,018

28


468,947

29

Rhode Island

408,496

25


431,133

26

Subtotal

1,515,696

92


1,549,999

95

All other states

123,366

8


83,025

5

Total commercial real estate loans

$1,639,062

100%


$1,633,024

100%







Residential Real Estate Loans by Property Location:






Massachusetts

$1,207,789

70%


$994,800

68%

Rhode Island

365,831

21


331,713

23

Connecticut

132,430

8


122,102

8

Subtotal

1,706,050

99


1,448,615

99

All other states

20,925

1


18,697

1

Total residential real estate loans

$1,726,975

100%


$1,467,312

100%

 


Dec 31,
2021

Sep 30,
2021

Jun 30,
2021

Mar 31,
2021

Dec 31,
2020

Deposits:






Noninterest-bearing demand deposits

$945,229

$950,974

$901,801

$932,999

$832,287

Interest-bearing demand deposits

251,032

238,317

174,165

171,571

174,290

NOW accounts

867,138

817,937

774,693

745,376

698,706

Money market accounts

1,072,864

1,046,324

941,511

950,413

910,167

Savings accounts

555,177

540,306

524,155

511,759

466,507

Time deposits (in-market)

773,383

709,288

677,061

701,524

704,855

In-market deposits

4,464,823

4,303,146

3,993,386

4,013,642

3,786,812

Wholesale brokered time deposits

515,228

754,996

732,273

535,500

591,541

Total deposits

$4,980,051

$5,058,142

$4,725,659

$4,549,142

$4,378,353

 

Washington Trust Bancorp, Inc. and Subsidiaries

CREDIT & ASSET QUALITY DATA

(Unaudited; Dollars in thousands)




Dec 31,
2021

Sep 30,
2021

Jun 30,
2021

Mar 31,
2021

Dec 31,
2020

Asset Quality Ratios:






Nonperforming assets to total assets

0.24%

0.18%

0.18%

0.23%

0.23%

Nonaccrual loans to total loans

0.33%

0.26%

0.24%

0.31%

0.31%

Total past due loans to total loans

0.24%

0.22%

0.20%

0.26%

0.30%

Allowance for credit losses on loans to nonaccrual loans

275.21%

380.02%

399.57%

324.56%

334.21%

Allowance for credit losses on loans to total loans

0.91%

0.97%

0.97%

1.00%

1.05%







Nonperforming Assets:






Commercial real estate

$—

$—

$—

$—

$—

Commercial & industrial

—

—

539

—

—

Total commercial

—

—

539

—

—

Residential real estate

13,576

10,321

8,926

11,748

11,981

Home equity

627

655

1,016

1,147

1,128

Other consumer

—

—

—

88

88

Total consumer

627

655

1,016

1,235

1,216

Total nonaccrual loans

14,203

10,976

10,481

12,983

13,197

Other real estate owned

—

—

—

—

—

Total nonperforming assets

$14,203

$10,976

$10,481

$12,983

$13,197







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






Commercial real estate

$—

$—

$—

$—

$265

Commercial & industrial

3

2

540

1

3

Total commercial

3

2

540

1

268

Residential real estate

9,622

8,698

6,656

9,661

10,339

Home equity

765

824

1,231

1,131

1,667

Other consumer

21

24

28

119

118

Total consumer

786

848

1,259

1,250

1,785

Total past due loans

$10,411

$9,548

$8,455

$10,912

$12,392







Accruing loans 90 days or more past due

$—

$—

$—

$—

$—

Nonaccrual loans included in past due loans

$9,359

$6,930

$5,773

$8,356

$8,521







Troubled Debt Restructurings:






Accruing TDRs

$16,328

$7,979

$8,541

$12,358

$13,340

Nonaccrual TDRs

2,819

1,732

2,278

1,935

2,345

Total TDRs

$19,147

$9,711

$10,819

$14,293

$15,685

 

Washington Trust Bancorp, Inc. and Subsidiaries

CREDIT & ASSET QUALITY DATA

(Unaudited; Dollars in thousands)


For the Three Months Ended


For the Twelve Months Ended


Dec 31,
2021

Sep 30,
2021

Jun 30,
2021

Mar 31,
2021

Dec 31,
2020


Dec 31,
2021

Dec 31,
2020

Nonaccrual Loan Activity:









Balance at beginning of period

$10,976

$10,481

$12,983

$13,197

$14,740


$13,197

$17,408

Additions to nonaccrual status

3,959

2,583

537

734

707


7,813

3,644

Loans returned to accruing status

(339)

—

(874)

(3)

(1,112)


(1,216)

(3,282)

Loans charged-off

(31)

(249)

(317)

(64)

(246)


(661)

(1,317)

Loans transferred to other real estate owned

—

—

—

—

(285)


—

(313)

Payments, payoffs and other changes

(362)

(1,839)

(1,848)

(881)

(607)


(4,930)

(2,943)

Balance at end of period

$14,203

$10,976

$10,481

$12,983

$13,197


$14,203

$13,197










Allowance for Credit Losses on Loans:









Balance at beginning of period

$41,711

$41,879

$42,137

$44,106

$42,645


$44,106

$27,014

Adoption of CECL accounting standard (Topic 326)

—

—

—

—

—


—

6,501

Provision for credit losses on loans (1)

(2,650)

—

—

(1,951)

1,579


(4,601)

11,736

Charge-offs

(33)

(249)

(317)

(64)

(245)


(663)

(1,317)

Recoveries

60

81

59

46

127


246

172

Balance at end of period

$39,088

$41,711

$41,879

$42,137

$44,106


$39,088

$44,106










Allowance for Credit Losses on Unfunded Commitments:








Balance at beginning of period

$2,333

$2,333

$2,333

$2,382

$2,180


$2,382

$293

Adoption of CECL accounting standard (Topic 326)

—

—

—

—

—


—

1,483

Provision for credit losses on unfunded commitments (1)

(172)

—

—

(49)

202


(221)

606

Balance at end of period (2)

$2,161

$2,333

$2,333

$2,333

$2,382


$2,161

$2,382



(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 Twelve Months Ended


Dec 31,
2021

Sep 30,
2021

Jun 30,
2021

Mar 31,
2021

Dec 31,
2020


Dec 31,
2021

Dec 31,
2020

Net Loan Charge-Offs (Recoveries):









Commercial real estate

$—

$—

$—

$—

$133


$—

$305

Commercial & industrial

(35)

(2)

302

1

(12)


266

562

Total commercial

(35)

(2)

302

1

121


266

867

Residential real estate

(4)

52

(47)

17

(20)


18

79

Home equity

(12)

110

(4)

(2)

9


92

172

Other consumer

24

8

7

2

8


41

27

Total consumer

12

118

3

—

17


133

199

Total

($27)

$168

$258

$18

$118


$417

$1,145










Net charge-offs to average loans (annualized)

—%

0.02%

0.02%

—%

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 ("FTE") basis using the statutory federal income tax rate adjusted for applicable state income taxes net of the related federal tax benefit.  Unrealized gains (losses) on available for sale securities 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

December 31, 2021


September 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

$190,291

$60

0.13%


$179,574

$56

0.12%


$10,717

$4

0.01%

Mortgage loans held for sale

50,425

387

3.04


41,261

298

2.87


9,164

89

0.17

Taxable debt securities

1,060,045

3,929

1.47


1,045,997

3,683

1.40


14,048

246

0.07

FHLB stock

12,986

98

2.99


18,909

95

1.99


(5,923)

3

1.00

Commercial real estate

1,657,669

14,281

3.42


1,648,972

12,209

2.94


8,697

2,072

0.48

Commercial & industrial

630,805

6,960

4.38


736,073

7,886

4.25


(105,268)

(926)

0.13

Total commercial

2,288,474

21,241

3.68


2,385,045

20,095

3.34


(96,571)

1,146

0.34

Residential real estate

1,689,949

13,636

3.20


1,623,913

13,511

3.30


66,036

125

(0.10)

Home equity

249,336

1,992

3.17


252,938

2,043

3.20


(3,602)

(51)

(0.03)

Other

18,171

224

4.89


19,822

247

4.94


(1,651)

(23)

(0.05)

Total consumer

267,507

2,216

3.29


272,760

2,290

3.33


(5,253)

(74)

(0.04)

Total loans

4,245,930

37,093

3.47


4,281,718

35,896

3.33


(35,788)

1,197

0.14

Total interest-earning assets

5,559,677

41,567

2.97


5,567,459

40,028

2.85


(7,782)

1,539

0.12

Noninterest-earning assets

324,904




351,678




(26,774)



Total assets

$5,884,581




$5,919,137




($34,556)



Liabilities and Shareholders' Equity:












Interest-bearing demand deposits

$238,390

$63

0.10%


$206,237

$51

0.10%


$32,153

$12

—%

NOW accounts

819,590

142

0.07


782,963

129

0.07


36,627

13

—

Money market accounts

1,059,846

561

0.21


1,014,204

586

0.23


45,642

(25)

(0.02)

Savings accounts

544,981

70

0.05


530,956

70

0.05


14,025

—

—

Time deposits (in-market)

746,887

1,927

1.02


672,012

1,695

1.00


74,875

232

0.02

Total interest-bearing in-market deposits

3,409,694

2,763

0.32


3,206,372

2,531

0.31


203,322

232

0.01

Wholesale brokered time deposits

611,467

214

0.14


722,233

258

0.14


(110,766)

(44)

—

Total interest-bearing deposits

4,021,161

2,977

0.29


3,928,605

2,789

0.28


92,556

188

0.01

FHLB advances

171,079

547

1.27


317,766

872

1.09


(146,687)

(325)

0.18

Junior subordinated debentures

22,681

92

1.61


22,681

92

1.61


—

—

—

PPPLF borrowings

—

—

—


—

—

—


—

—

—

Total interest-bearing liabilities

4,214,921

3,616

0.34


4,269,052

3,753

0.35


(54,131)

(137)

(0.01)

Noninterest-bearing demand deposits

981,706




952,676




29,030



Other liabilities

131,189




142,562




(11,373)



Shareholders' equity

556,765




554,847




1,918



Total liabilities and shareholders' equity

$5,884,581




$5,919,137




($34,556)



Net interest income (FTE)


$37,951




$36,275




$1,676


Interest rate spread



2.63%




2.50%




0.13%

Net interest margin



2.71%




2.58%




0.13%

 

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

For the Three Months Ended

Dec 31, 2021

Sep 30, 2021

Change

Commercial loans

$211

$205

$6

Total

$211

$205

$6


  











Washington Trust Bancorp, Inc. and Subsidiaries

CONSOLIDATED AVERAGE BALANCE SHEETS (FTE Basis)

(Unaudited; Dollars in thousands)

For the Twelve Months Ended

December 31, 2021

December 31, 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

$167,898

$181

0.11%

$160,427

$459

0.29%

$7,471

($278)

(0.18%)

Mortgage loans for sale

52,580

1,531

2.91

54,237

1,762

3.25

(1,657)

(231)

(0.34)

Taxable debt securities

1,013,445

14,295

1.41

902,278

20,050

2.22

111,167

(5,755)

(0.81)

FHLB stock

21,422

436

2.04

45,235

2,240

4.95

(23,813)

(1,804)

(2.91)

Commercial real estate

1,643,107

49,551

3.02

1,632,460

52,231

3.20

10,647

(2,680)

(0.18)

Commercial & industrial

752,934

30,824

4.09

767,176

27,410

3.57

(14,242)

3,414

0.52

Total commercial

2,396,041

80,375

3.35

2,399,636

79,641

3.32

(3,595)

734

0.03

Residential real estate

1,571,459

52,884

3.37

1,488,343

55,866

3.75

83,116

(2,982)

(0.38)

Home equity

254,289

8,212

3.23

277,296

10,032

3.62

(23,007)

(1,820)

(0.39)

Other

19,765

966

4.89

18,929

941

4.97

836

25

(0.08)

Total consumer

274,054

9,178

3.35

296,225

10,973

3.70

(22,171)

(1,795)

(0.35)

Total loans

4,241,554

142,437

3.36

4,184,204

146,480

3.50

57,350

(4,043)

(0.14)

Total interest-earning assets

5,496,899

158,880

2.89

5,346,381

170,991

3.20

150,518

(12,111)

(0.31)

Noninterest-earning assets

341,067



358,569



(17,502)



Total assets

$5,837,966



$5,704,950



$133,016



Liabilities and Shareholders' Equity:










Interest-bearing demand deposits

$202,929

$259

0.13%

$159,366

$806

0.51%

$43,563

($547)

(0.38%)

NOW accounts

765,584

491

0.06

593,105

368

0.06

172,479

123

—

Money market accounts

984,278

2,413

0.25

839,915

5,402

0.64

144,363

(2,989)

(0.39)

Savings accounts

521,143

282

0.05

415,741

265

0.06

105,402

17

(0.01)

Time deposits (in-market)

702,303

7,749

1.10

742,236

13,138

1.77

(39,933)

(5,389)

(0.67)

Total interest-bearing in-market deposits

3,176,237

11,194

0.35

2,750,363

19,979

0.73

425,874

(8,785)

(0.38)

Wholesale brokered time deposits

644,151

1,196

0.19

501,306

5,833

1.16

142,845

(4,637)

(0.97)

Total interest-bearing deposits

3,820,388

12,390

0.32

3,251,669

25,812

0.79

568,719

(13,422)

(0.47)

FHLB advances

370,881

3,800

1.02

920,704

15,806

1.72

(549,823)

(12,006)

(0.70)

Junior subordinated debentures

22,681

370

1.63

22,681

641

2.83

—

(271)

(1.20)

PPPLF borrowings

—

—

—

66,492

233

0.35

(66,492)

(233)

(0.35)

Total interest-bearing liabilities

4,213,950

16,560

0.39

4,261,546

42,492

1.00

(47,596)

(25,932)

(0.61)

Noninterest-bearing demand deposits

934,626



759,841



174,785



Other liabilities

143,197



167,861



(24,664)



Shareholders' equity

546,193



515,702



30,491



Total liabilities and shareholders' equity

$5,837,966



$5,704,950



$133,016



Net interest income (FTE)


$142,320



$128,499



$13,821


Interest rate spread



2.50%



2.20%



0.30%

Net interest margin



2.59%



2.40%



0.19%

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





For the Twelve Months Ended

Dec 31, 2021

Dec 31, 2020

Change

Commercial loans

$885

$1,055

($170)

Total

$885

$1,055

($170)

 

Washington Trust Bancorp, Inc. and Subsidiaries

SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures

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




Dec 31,
2021

Sep 30,
2021

Jun 30,
2021

Mar 31,
2021

Dec 31,
2020

Tangible Book Value per Share:






Total shareholders' equity, as reported

$564,808

$555,318

$547,856

$533,599

$534,195

Less:






Goodwill

63,909

63,909

63,909

63,909

63,909

Identifiable intangible assets, net

5,414

5,631

5,853

6,079

6,305

Total tangible shareholders' equity

$495,485

$485,778

$478,094

$463,611

$463,981







Shares outstanding, as reported

17,331

17,320

17,320

17,306

17,265







Book value per share - GAAP

$32.59

$32.06

$31.63

$30.83

$30.94

Tangible book value per share - Non-GAAP

$28.59

$28.05

$27.60

$26.79

$26.87







Tangible Equity to Tangible Assets:






Total tangible shareholders' equity

$495,485

$485,778

$478,094

$463,611

$463,981







Total assets, as reported

$5,851,127

$6,002,643

$5,851,980

$5,719,389

$5,713,169

Less:






Goodwill

63,909

63,909

63,909

63,909

63,909

Identifiable intangible assets, net

5,414

5,631

5,853

6,079

6,305

Total tangible assets

$5,781,804

$5,933,103

$5,782,218

$5,649,401

$5,642,955







Equity to assets - GAAP

9.65%

9.25%

9.36%

9.33%

9.35%

Tangible equity to tangible assets - Non-GAAP

8.57%

8.19%

8.27%

8.21%

8.22%

 


For the Three Months Ended


For the Twelve Months Ended


Dec 31,
2021

Sep 30,
2021

Jun 30,
2021

Mar 31,
2021

Dec 31,
2020


Dec 31,
2021

Dec 31,
2020

Return on Average Tangible Assets:









Net income, as reported

$20,188

$18,751

$17,460

$20,471

$18,566


$76,870

$69,829










Total average assets, as reported

$5,884,581

$5,919,137

$5,833,425

$5,711,931

$5,768,263


$5,837,966

$5,704,950

Less average balances of:









Goodwill

63,909

63,909

63,909

63,909

63,909


63,909

63,909

Identifiable intangible assets, net

5,526

5,739

5,963

6,189

6,414


5,852

6,755

Total average tangible assets

$5,815,146

$5,849,489

$5,763,553

$5,641,833

$5,697,940


$5,768,205

$5,634,286










Return on average assets - GAAP

1.36%

1.26%

1.20%

1.45%

1.28%


1.32%

1.22%

Return on average tangible assets - Non-
  GAAP

1.38%

1.27%

1.22%

1.47%

1.30%


1.33%

1.24%










Return on Average Tangible Equity:









Net income available to common shareholders, as reported

$20,128

$18,697

$17,408

$20,415

$18,524


$76,648

$69,678










Total average equity, as reported

$556,765

$554,847

$540,524

$532,271

$527,969


$546,193

$515,702

Less average balances of:









Goodwill

63,909

63,909

63,909

63,909

63,909


63,909

63,909

Identifiable intangible assets, net

5,526

5,739

5,963

6,189

6,414


5,852

6,755

Total average tangible equity

$487,330

$485,199

$470,652

$462,173

$457,646


$476,432

$445,038










Return on average equity - GAAP

14.34%

13.37%

12.92%

15.55%

13.96%


14.03%

13.51%

Return on average tangible equity - Non-
  GAAP

16.39%

15.29%

14.84%

17.91%

16.10%


16.09%

15.66%

 

Category: Earnings

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SOURCE Washington Trust Bancorp, Inc.