WESTERLY – Washington Trust Bancorp Inc., the parent company of The Washington Trust Co., reported third-quarter net income of $13 million Monday, a 5.2 percent increase on its 2016 third-quarter results. Diluted earnings per share were 75 cents, a gain of 3 cents on the same 2016 period.
Total interest and dividend, and non-interest income increased 9.2 percent for the three-month period to $55.2 million. Interest and dividend income grew 13.9 percent to $37.9 million, while non-interest income grew 0.1 percent to $17.3 million.
“Washington Trust’s third-quarter performance reflects our continued success at growing our key business lines,” said Joseph J. MarcAurele, Washington Trust chairman and CEO. “Our diversified revenue streams were integral to our solid quarterly results, allowing us to maintain our strong profitability metrics.”
Wealth management revenue for the company was $10 million, a year-over-year increase of 4.1 percent, as assets under management grew 8.8 percent to $6.6 billion since the end of September 2016.
Total assets at the end of the quarter stood at $4.5 billion, an increase of 6.3 percent year over year. Loans totaled $3.3 billion, an increase of 4.5 percent on the year. Residential real estate loans by the bank grew 10.7 percent to $1.2 billion at the end of September, while commercial loans grew 2.4 percent to $1.8 billion. Consumer loans, however, declined 4.9 percent to $327.4 million year over year.
Nonperforming assets for Washington Trust declined 21.8 percent year over year to $19.5 million in the third quarter. As a percentage of total assets, nonperforming assets fell to 0.44 percent from 0.59 percent a year earlier. Loans more than 30 days past due fell 22.6 percent to $16.4 million, falling to 0.49 percent of all loans from 0.67 percent at the end of the 2016 third quarter.
Deposits totaled $3.2 billion by the end of the quarter 2017, an increase of 3.9 percent.
Net interest margin for the third quarter was 2.93 percent, a year-over-year drop of 1 basis point. Washington Trust’s return on average assets fell to 1.18 percent from 1.21 percent, while return on average equity also fell one basis point to 12.56 percent.
Chris Bergenheim is the PBN web editor.
