Wash Trust posts record profit in 2Q

WASHINGTON TRUST BANCORP Inc., parent company of The Washington Trust Co., posted second-quarter net income of $8.7 million, or 53 cents per diluted share
Posted 7/23/12

WESTERLY - Washington Trust Bancorp Inc., parent company of The Washington Trust Co., posted a record second quarter net income of $8.7 million, or 53 cents per diluted share, a rise of 15.2 percent compared to the second quarter 2011 figures.

Both total and per share figures marked the third consecutive record-setting quarter for the company, the bank announced late Monday.

Washington Trust posted a 6.1 percent year-over-year increase in total revenue for the period to $46.4 million. In a statement, bank Chairman, President and CEO Joseph J. MarcAurele attributed the results to ‘solid growth’ in mortgage and commercial banking, as well as strong asset quality.

Total loans were $2.2 billion at June 30, 2012, up by $58 million, or 3 percent from the close of the first quarter. Loans were led by a growth of $53 million, or 5 percent in the commercial loan portfolio. Total deposits were $2.1 billion at June 30, 2012, down slightly from March 31, 2012.

Year-to-date, total loans increased by $66.7 million, or 3 percent, including a 6 percent increase in total commercial loans.

Quality indicators showed continued improvement in the bank’s second quarter. The balances of nonperforming assets - nonaccrual loans, nonaccrual investment securities and property acquired through foreclosure or repossession - loan delinquencies and troubled debt restructurings all declined in the three months ended June 30.

Mortgage banking revenues totaled $3.0 million for the quarter, consistent with the prior quarter and reflective of continued strong mortgage origination volume, according to the bank’s release.

The loan loss provision charged to earnings in the second quarter of 2012 was $600,000, compared to $900,000 in the previous quarter. The $600,000 was the lowest since the first quarter of 2008.

The net interest margin for the second quarter was 3.3 percent, up from 3.27 percent in previous quarter and reflecting continued improvement in the mix of interest-earning assets resulting from good loan growth and pay downs in the securities portfolio as well as continued reductions of deposit costs.

The second quarter 2012 net interest margin was up by 9 basis points from 3.21 percent during the same period 2011. An increase reflecting a reduction in the cost of funds, according to the bank.

Average interest earning assets for the second quarter of 2012 grew by $104.0 million, or 4 percent, year over year from the second quarter 2011.

Second quarter 2012 noninterest income totaled $16.2 million, an increase of $1.9 million, or 14 percent from the previous quarter and up by $2.9 million, or 22 percent from the second quarter of 2011.

Noninterest expenses totaled $25.2 million for the second quarter of 2012, an increase of $1.8 million, or 8 percent from the previous quarter and up by $3.0 million, or 13 percent from the second quarter of 2011.

“Washington Trust posted another record quarter with good performances along key business lines,” Joseph J. MarcAurele, Washington Trust chairman, president and CEO said in a statement. “We’re particularly pleased with our lending results in this challenging economy, as both our mortgage and commercial banking areas showed solid growth, while asset quality remained strong.”

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