WESTERLY – Washington Trust Bancorp Inc., parent of The Washington Trust Co., said on Monday that its second-quarter net income shot up by more than 42 percent to $7.57 million, what the banks says is a record quarterly profit.
Earnings per diluted share were 46 cents, up 13 cents from the same period in 2010, when Washington Trust posted $5.3 million in net income.
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This year’s second-quarter performance beat by 2 cents a consensus estimate from the three analysts who follow Washington Trust, according to Yahoo!Finance.
The bank posted $43.7 million in interest and non-interest revenue for the second quarter, up 3.1 percent from the $42.37 million in the same period a year earlier.
As it did in the first quarter, Washington Trust saw improved wealth-management income, which was $7.51 million in April, May, June, $747,000 greater than in those three months in 2010.
The bank was lifted to a record performance in part because of a significant reduction in the amount it paid out in interest on deposits. Interest expense declined by $1.3 million to $4.03 for the 2011 second quarter, compared with the year-earlier period. (Total deposits declined by $40 million year over year. Deposits stood at $2 billion as of June 30.)
At same time, interest paid on advances from the Federal Home Loan Bank of Boston dropped $1.32 million to $4.69 million.
The $7.57 million profit for the second quarter beat a quarterly record of $7.2 million in the 2010 fourth quarter.
“Washington Trust posted record quarterly net income, as our statewide presence and client base continues to grow in a challenging economy,” Joseph J. MarcAurele, Washington Trust chairman, president and CEO, said in a statement. “We’re excited about the opportunities offered by our new East Providence branch, which is scheduled to open in September.”
Washington Trust cut its provision for anticipated bad loans from $1.5 million to $1.2 million for the second quarter.
Washington Trust said total past due loans declined by $2.73 million in the three-month period to $24.55 million.
But the bank saw nonperforming assets climb to 0.82 percent of total assets as of June 30, compared with 0.77 percent three months earlier. The ratio stood at 0.89 percent a year earlier.
As of June 30, Washington Trust’s total assets were $2.94 billion, up about $44 million from a year ago.
The bank’s returns on average equity and average assets for the second quarter were 10.83 percent and 1.04 percent, respectively, compared with 8.05 percent and 0.73 percent, respectively, for the same period in 2010.
The bank’s net interest margin widened to 3.21 percent in the period ended June 30, up 5 basis points from the fourth quarter of 2009 and up 35 basis points from a year ago.
