WashTrust sets profit record in 3Q as assets pass $4B for 1st time

Washington Trust Bancorp set records for profit, assets and wealth management assets in the 2016 third quarter.
Washington Trust Bancorp set records for profit, assets and wealth management assets in the 2016 third quarter.

WESTERLY – Washington Trust Bancorp Inc. on Monday reported record-breaking, third-quarter profit, which grew 20.8 percent to $12.3 million, or 72 cents per diluted share, while the company exceeded $4 billion in assets for the first time in its history.

“Our third-quarter results reflect the strength and diversity of our business model, as we generated key revenues from our core business lines,” said Joseph J. MarcAurele, chairman and CEO, in prepared remarks.

Third-quarter interest and noninterest revenue grew 11.2 percent to $50.5 million, fueled largely by a 24.1 percent year-over-year increase in noninterest income, totaling $17.3 million. Total interest and dividend income grew 5.5 percent to $33.3 million. The parent company of The Washington Trust Co. of Westerly reported its net interest margin dropped 13 points to 2.49 percent, attributing it primarily to “lower yields on interest-earning assets, resulting from additions to the investment securities portfolio and to a lesser extent, a reduction in the yield on the loan portfolio.”

Total loans grew 7.8 percent to $3.2 billion compared with $2.9 billion for the prior-year period. The company realized year-over-year loan growth in commercial loans and residential real estate loans, while consumer loans dropped slightly. The total allowance for loan losses fell 5.6 percent to $25.6 million.
Total past due commercial mortgages more than doubled to $10.4 million. The increase was due to “one commercial real estate relationship, previously modified in a troubled debt restructuring, with a carrying value of $6.3 million,” according to the company. There was a $1.9 million charge-off related to this relationship in the quarter, which accounted for a loan loss provision of $1.8 million in the period compared with $200,000 in the third quarter of 2015.

- Advertisement -

Total assets grew 14.4 percent to $4.2 billion, marking the first time the company has exceeded $4 billion.

The company realized a 8.1 percent increase in wealth management revenue, which totaled $9.6 million for the quarter. Assets under administration grew 6 percent to $6.1 billion for the quarter. Both reflected record highs for Washington Trust.

Total deposits grew 7.1 percent to $3 billion.

The company’s Board of Directors declared a quarterly dividend of 37 cents per share.

No posts to display