WESTERLY – Washington Trust Bancorp Inc. on Monday reported a 33.9 percent increase in profit in the second quarter compared with the same period last year, hitting a record for quarterly earnings.
The Westerly-based bank, parent company of The Washington Trust Co., reported net income rose to $17.7 million in the quarter ended June 30, an increase from $13.2 million a year earlier. Diluted earnings per share totaled $1.01, a gain on 76 cents a year earlier. The bank paid a 43 cents per share dividend for the quarter, 5 cents more than during the second quarter of 2017.
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Total revenue rose to $59.3 million in the quarter, a 9.9 percent increase from $53.9 million in the second quarter of 2017. Interest income grew $6.1 million from a year earlier to $43.3 million, driven by interest and fees on loans as well as growth of taxable interest on securities. Noninterest income, meanwhile, fell 4.8 percent to $16 million from the second quarter last year, mainly due to year-over-year drops in wealth management revenue and loan-related derivative income.
Profitability ratios reached their highest levels in 15 years, the bank said, with returns on average equity and average assets of 16.99 percent and 1.53 percent, respectively. Net interest margin was 3.05 percent in the second quarter, eight basis points higher thanb the 2.97 percent from a year earlier
“Washington Trust is pleased to report another strong performance, with record earnings and diluted earnings per share for the second quarter of 2018,” Washington Trust Chairman and CEO Edward O. Handy III said in a statement.
“Our continued profitability and solid financial metrics reflect the strength and stability of our corporation, as evidenced by our recent recognition by American Banker [magazine] as one of the nation’s top performing mid-tier banks,” Handy said.
Total assets for the bank increased 8.3 percent year over year to $4.7 billion, powered by loan growth of 9.1 percent to $3.5 billion. Total deposits increased 9.9 percent to $3.3 billion.
Total wealth management revenue fell 3.4 percent to $9.6 million, as assets under management for the bank’s wealth management division fell 2.9 percent to $6.2 billion.
Founded in 1800, Washington Trust is the oldest community bank in the nation and the largest state-chartered bank headquartered in Rhode Island.
Scott Blake is a PBN staff writer. Email him at Blake@pbn.com.
