WESTERLY – The Washington Trust Co.’s parent company reported Monday a 7.9% increase in net income in the first quarter from a year earlier. Net income in the quarter ended March 31 rose to $17.5 million, or $1 per diluted share, from $16.2 million, or 93 cents per diluted share, in the first quarter of 2018, Washington Trust Bancorp Inc. reported.
Total interest and dividend, and noninterest income came to $65.6 million in the quarter, a 16.7% year-over-year increase, driven by an increase in interest and fees on loans.
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Washington Trust, the fourth-largest consumer bank based on market share of deposits in the region, according to the 2019 PBN Book of Lists, reported total assets of $5.2 billion on March 31, a 12.9% increase from the same date in 2018. Total loans increased 10.4% to $3.7 billion over the year.
Commercial real estate loans totaled $1.5 billion in the first quarter, an increase of 20.2% from a year earlier. Residential real estate loans – consisting of mortgage and homeowner construction loans secured by one- to four-family residential properties – totaled $1.4 billion in the first quarter, an 8.7% increase over the year. Still, residential loan originations fell 11.6% to $137.5 million on a year-over-year basis.
Total deposits increased 7.6% to $3.5 billion from a year earlier, the company reported. Senior Executive Vice President and Chief Financial Officer and Treasurer Ronald S. Ohsberg said the growth in deposits was aided by the bank’s deposit promotion over the past year and a half, as well as the opening of new branches in Coventry and North Providence.
Meanwhile, wealth management assets totaled $6.4 billion by the end of the quarter, a 0.1% increase from a year earlier, while revenue from the activity fell 9.9% to $9.3 million.
On a year-to-year basis, Washington Trust’s capital ratios improved, while its performance ratios did not. For instance, Tier 1 risked-based capital increased 11.84% from 11.78% over the year, while return on average assets fell to 1.39% from 1.45% for the same 2018 period. Bank executives described the performance ratio drops as a common function of its expanding loan and asset portfolio. Though down from a year ago, its performance ratios remain higher than most other banks in its size category, Ohsberg said. The bank’s net interest margin fell to 2.93% from 3.02% over the year.
“Washington Trust posted solid first-quarter earnings and earnings per share,” company Chairman and CEO Edward O. Handy III, said in a statement. “We had good activity across all business lines resulting from favorable market conditions, recent branch expansion, and continued marketing and business development efforts.”
Scott Blake is PBN staff writer. Email at him at Blake@PBN.com
