Washington Trust to open new branch in Coventry

COVENTRY – The Washington Trust Co. plans to open a new bank branch in Coventry this year.

The new branch on Tiogue Avenue would open sometime during the third or fourth quarter, bank executives told investors during an earnings call on Monday.

“So far, these [new branches] have worked for us,” said Joseph A. MarcAurele, chairman and CEO.

The Coventry branch would become the newest location to open since Washington Trust opened one on the East Side of Providence last year. MarcAurele told investors the Providence branch has so far resulted in about $6 million in deposits.

- Advertisement -

The CEO, however, says he isn’t blind to the fact that retail banking has changed drastically in recent years. He pointed specifically at the increasing popularity of mobile- and web-based banking.

“We think there may be one or two more opportunities, but we’re very cognizant to the fact that retail branching is a changing world,” he said.

Newer branches are physically smaller and staffed with fewer employees to match lower traffic volume. Nonetheless, there are still certain types of transactions – like mortgage lending and investment services – customers would rather do in person than virtually.

“We will continue to provide methodically more sensitive transactions,” said Edward “Ned” O. Handy III, president and chief operating officer.

The new branches, too, serve as a marketing tool to let untapped neighborhoods know Washington Trust is in town and open for business. The visibility, MarcAurele said, helps Washington Trust expand its deposits business, which is highly competitive in Rhode Island.

“It’s a more formalized billboard, if you will,” MarcAurele said.

Washington Trust has the third largest share of the deposit market at 9.5 percent. It follows Citizens Bank – 35.6 percent – and Bank of America – 27.1 percent, according to the Federal Deposit Insurance Corp.

The Westerly-based bank is coming off a first quarter with strong deposit growth. It grew first-quarter profit 7.7 percent to $11.8 million, or 68 cents per diluted share. It posted profit totaling $10.9 million, or 64 cents per diluted share, a year earlier.