Washington Trust Reports Record Full-Year 2016 Earnings
- 83
WESTERLY, R.I., Jan. 25, 2017 (GLOBE NEWSWIRE) -- Washington Trust Bancorp, Inc. (Nasdaq:WASH), parent company of The Washington Trust Company, today announced net income of $12.2 million, or $0.70 per diluted share, for the fourth quarter of 2016, compared to net income of $12.3 million, or $0.72 per diluted share, reported for the third quarter of 2016.
For the year ended December 31, 2016, net income totaled $46.5 million, or $2.70 per diluted share. Full-year net income increased by 7% from $43.5 million, or $2.54 per diluted share, reported for 2015. Returns on average equity and average assets in 2016 were 11.96% and 1.16%, respectively, compared to 12.00% and 1.19%, for the same period in 2015.
“Washington Trust’s solid fourth quarter results contributed to record 2016 net income and earnings per share,” stated Joseph J. MarcAurele, Washington Trust Chairman and Chief Executive Officer. “We are pleased with our continued success at growing our core business lines, expanding our local and regional footprint, and consistently providing healthy returns to our shareholders.”
Selected highlights for 2016 include:
- Total loans stood at $3.2 billion at December 31, 2016, up by 2% in the quarter and up by 7% from a year ago.
- Total deposits amounted to $3.1 billion at December 31, 2016, up by 1% from the third quarter. Total deposits were up by 4% from a year ago.
- Wealth management revenues of $37.6 million for the year 2016 and wealth management assets of $6.1 billion at December 31, 2016 were all-time highs for the Corporation.
- Mortgage banking revenues rose by 22% on a linked quarter basis. Mortgage banking revenues and loans sold during the quarter were record highs for Washington Trust.
Net Interest Income
Net interest income totaled $28.6 million for the fourth quarter of 2016, up by $1.2 million from the third quarter. Included in net interest income was loan prepayment fee income of $816 thousand for the fourth quarter, compared to $365 thousand in the third quarter. The net interest margin was 2.89% for the fourth quarter of 2016, down by 5 basis points from the preceding quarter. The reduction in the net interest margin reflects additions of lower-yielding debt securities to the investment portfolio and increases in wholesale funding balances. Significant linked quarter changes included:
- Average interest-earning assets increased by $224 million from the third quarter, reflecting a $133 million increase in the average balance of investment securities and a $101 million increase in the average balance of loans. The yield on interest-earning assets was 3.53%, down by 2 basis points from the preceding quarter.
- Average interest-bearing liabilities increased by $183 million from the preceding quarter, reflecting increases of $113 million in the average balance of wholesale funding balances (FHLBB advances and wholesale brokered time deposits) and $70 million in the average balance of in-market interest-bearing deposits. The cost of interest-bearing funds was 0.79%, up by 3 basis points from the third quarter.
Noninterest Income
Noninterest income totaled $17.3 million for the fourth quarter of 2016, up modestly from the preceding quarter. Significant linked quarter changes included:
- Wealth management revenues totaled $9.3 million for the fourth quarter, down by $332 thousand, or 3%, from the preceding quarter, largely due to a decline of $216 thousand in transaction-based revenues. Wealth management assets under administration amounted to $6.1 billion at December 31, 2016, up by $6 million on a linked quarter basis. Managed assets continue to represent over 90% of total wealth management assets at December 31, 2016.
Total annual wealth management revenues reached an all-time high of $37.6 million, up by $2.2 million, or 6%, from the preceding year. - Mortgage banking revenues totaled $4.5 million for the fourth quarter, up by $807 thousand, or 22%, from the preceding quarter, reflecting both higher volume and yields on loans sold to the secondary market. Residential mortgage loans sold to the secondary market amounted to $200 million in the fourth quarter, compared to $164 million in the preceding quarter.
Total full-year 2016 mortgage banking revenues amounted to $13.2 million, up by $3.3 million, or 33%, from the preceding year. - Loan related derivative income amounted to $912 thousand in the fourth quarter, down by $266 thousand from the preceding quarter, reflecting a lower volume of commercial borrower interest rate swap transactions.
Noninterest Expenses
Noninterest expenses totaled $25.0 million for the fourth quarter of 2016, up by $323 thousand, or 1%, from the third quarter. Included in the third quarter was a $939 thousand reduction in noninterest expenses, resulting from a downward adjustment in the fair value of the contingent consideration liability recognized in connection with a 2015 acquisition. Excluding this adjustment, noninterest expenses were down by $616 thousand, or 2%, on a linked quarter basis. Salaries and benefit costs, the largest component of noninterest expenses, decreased by $380 thousand from the preceding quarter.
Income tax expense amounted to $5.9 million for the fourth quarter of 2016, up by $10 thousand from the preceding quarter. The effective tax rate for the fourth quarter of 2016 was 32.6%, compared to 32.2% for the third quarter of 2016. Based on the current federal and applicable state income tax statutes, the Corporation currently expects the 2017 effective tax rate will be approximately 34.0%.
Loans
Total loans amounted to $3.2 billion at December 31, 2016, up by $53 million, or 2%, from the balance at the end of the third quarter. The commercial loan portfolio increased by $14 million, or approximately 1%, during the quarter, reflecting growth in the commercial construction portfolio, partially offset by a reduction in commercial mortgages. Residential loan portfolio balances increased by $43 million, or 4%. During the quarter, $36 million of residential mortgages were purchased from another financial institution. These purchased loans were individually evaluated to our underwriting standards and are predominantly secured by properties in Massachusetts.
Total loans were up by $221.2 million, or 7%, in the last twelve months. This included a 7% increase in the commercial portfolio and an 11% increase in the residential real estate portfolio.
Investment Securities
The investment securities portfolio amounted to $756 million at December 31, 2016, up by $174 million, or 30%, from the balance at September 30, 2016. During the quarter, government agency mortgage-backed debt securities and agency debt securities totaling $235 million and with a weighted average yield of 2.55% were purchased. The purchases were partially offset by calls and maturities of agency debt securities and obligations of state and political subdivisions, as well as routine principal pay-downs on mortgage-backed securities. Investment securities represented 17% of total assets as of December 31, 2016.
Deposits and Borrowings
Total deposits amounted to $3.1 billion at December 31, 2016, up by $26 million, or 1%, from the preceding quarter end and up by $129.5 million, or 4%, in the last twelve months. Included in total deposits were wholesale brokered time deposit balances of $412 million, which increased by $53 million in the quarter and by $109.8 million in the last twelve months. Excluding wholesale brokered time deposits, in-market deposits decreased by $27 million, or 1%, in the quarter and increased by $20 million, or 1%, in the last twelve months. The balance of demand deposits and NOW accounts were up by 4% in the quarter and 7% in the last twelve months.
FHLBB advances amounted to $849 million at December 31, 2016, up by $177 million from September 30, 2016 and by $470 million from December 31, 2015.
Asset Quality
Total past due loans amounted to $24.4 million, or 0.76% of total loans, at December 31, 2016, compared to $21.3 million, or 0.67% of total loans, at September 30, 2016. The linked quarter increase in past due loans was largely due to a $3.9 million increase in residential mortgage loans. Total nonaccrual loans amounted to $22.1 million, or 0.68% of total loans, at December 31, 2016, compared to $24.0 million, or 0.75% of total loans, at September 30, 2016. The linked quarter decrease in nonaccrual loans was attributable to $2.6 million of charge-offs recognized in the fourth quarter.
During the fourth quarter of 2016, a charge-off of $2.5 million was recognized on one nonaccrual commercial real estate relationship. This relationship was placed on nonaccrual status in the third quarter of 2016 and had a carrying value of $3.9 million at December 31, 2016. A loan loss provision totaling $2.9 million was charged to earnings in the fourth quarter of 2016, compared to a loan loss provision of $1.8 million recognized in the third quarter of 2016. The increase in loan loss provision was primarily due to additional loss exposure allocated to this commercial real estate relationship. The allowance for loan losses was $26.0 million, or 0.80% of total loans, at December 31, 2016, compared to $25.6 million, or 0.81% of total loans, at September 30, 2016.
Capital and Dividends
Total shareholders' equity was $391 million at December 31, 2016, down by $5 million from September 30, 2016. This change included $9.5 million of market depreciation on available for sale securities and a charge of $2.6 million associated with the annual measurement of defined benefit pension liabilities, both net of tax and recognized in the accumulated other comprehensive income component of shareholders' equity. Capital levels at December 31, 2016 exceeded the regulatory minimum levels to be considered well capitalized, with a total risk-based capital ratio of 12.26% at December 31, 2016, compared to 12.31% at September 30, 2016. At December 31, 2016, book value per share amounted to $22.76, down from $23.11 in the preceding quarter.
The Board of Directors declared a quarterly dividend of 37 cents per share for the quarter ended December 31, 2016. The dividend was paid on January 13, 2017 to shareholders of record on January 2, 2017.
Conference Call
Washington Trust will host a conference call to discuss its fourth quarter results, business highlights and outlook on Thursday, January 26, 2017 at 8:30 a.m. (Eastern Time). Individuals may dial in to the call at 1-877-407-0784. An audio replay of the call will be available, shortly after the conclusion of the call, by dialing 1-844-512-2921 and entering the Replay PIN Number 13652407; the audio replay will be available through February 5, 2017. Also, a webcast of the call will be posted in the Investor Relations section of Washington Trust's web site, www.washtrustbancorp.com, and will be available through March 31, 2017.
Background
Washington Trust Bancorp, Inc. is the parent of The Washington Trust Company. Founded in 1800, Washington Trust is the oldest community bank in the nation, the largest state-chartered bank headquartered in Rhode Island and one of the Northeast's premier financial services companies. Washington Trust offers a full range of financial services, including commercial banking, mortgage banking, personal banking and wealth management and trust services through its offices located in Rhode Island, Connecticut and Massachusetts. The Corporation’s common stock trades on NASDAQ under the symbol WASH. Investor information is available on the Corporation’s web site at www.washtrustbancorp.com.
Forward-Looking Statements
This press release contains statements that are “forward-looking statements”. We may also make forward-looking statements in other documents we file with the SEC, in press releases and other written materials, and in oral statements made by our officers, directors or employees. You can identify forward-looking statements by the use of the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “assume,” “outlook,” “will,” “should,” and other expressions that predict or indicate future events and trends and which do not relate to historical matters. You should not rely on forward-looking statements, because they involve known and unknown risks, uncertainties and other factors, some of which are beyond the control of Washington Trust. These risks, uncertainties and other factors may cause the actual results, performance or achievements of Washington Trust to be materially different from the anticipated future results, performance or achievements expressed or implied by the forward-looking statements.
Some of the factors that might cause these differences include the following: weakness in national, regional or international economic conditions or conditions affecting the banking or financial services industries or financial capital markets; volatility in national and international financial markets; reductions in net interest income resulting from interest rate volatility as well as changes in the balance and mix of loans and deposits; reductions in the market value of wealth management assets under administration; changes in the value of securities and other assets; reductions in loan demand; changes in loan collectibility, default and charge-off rates; changes in the size and nature of the our competition; changes in legislation or regulation and accounting principles, policies and guidelines; and changes in the assumptions used in making such forward-looking statements. In addition, the factors described under “Risk Factors” in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2015, as updated by our Quarterly Reports on Form 10-Q and other filings submitted to the SEC, may result in these differences. You should carefully review all of these factors and you should be aware that there may be other factors that could cause these differences. These forward-looking statements were based on information, plans and estimates at the date of this report, and we assume no obligation to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes.
Supplemental Information - Explanation of Non-GAAP Financial Measures
In addition to results presented in accordance with generally accepted accounting principles (“GAAP”), this press release contains certain non-GAAP financial measures. Washington Trust's management believes that the supplemental non-GAAP information, which consists of measurements and ratios based on tangible equity and tangible assets, is utilized by regulators and market analysts to evaluate a company's financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.
| Washington Trust Bancorp, Inc. and Subsidiaries | |||||||||||||||
| CONSOLIDATED BALANCE SHEETS | |||||||||||||||
| (Unaudited; Dollars in thousands) | |||||||||||||||
| Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | |||||||||||
| Assets: | |||||||||||||||
| Cash and due from banks | $ | 106,185 | $ | 126,752 | $ | 116,658 | $ | 89,966 | $ | 93,222 | |||||
| Short-term investments | 1,612 | 2,420 | 3,255 | 4,931 | 4,409 | ||||||||||
| Mortgage loans held for sale | 29,434 | 45,162 | 38,554 | 22,895 | 38,554 | ||||||||||
| Securities: | |||||||||||||||
| Available for sale, at fair value | 739,912 | 564,256 | 401,749 | 411,352 | 375,044 | ||||||||||
| Held to maturity, at amortized cost | 15,633 | 16,848 | 17,917 | 19,040 | 20,023 | ||||||||||
| Total securities | 755,545 | 581,104 | 419,666 | 430,392 | 395,067 | ||||||||||
| Federal Home Loan Bank stock, at cost | 43,129 | 37,249 | 34,303 | 26,515 | 24,316 | ||||||||||
| Loans: | |||||||||||||||
| Commercial | 1,771,666 | 1,757,215 | 1,732,220 | 1,698,811 | 1,654,547 | ||||||||||
| Residential real estate | 1,122,748 | 1,079,887 | 1,005,036 | 1,004,349 | 1,013,555 | ||||||||||
| Consumer | 339,957 | 344,253 | 343,628 | 343,833 | 345,025 | ||||||||||
| Total loans | 3,234,371 | 3,181,355 | 3,080,884 | 3,046,993 | 3,013,127 | ||||||||||
| Less allowance for loan losses | 26,004 | 25,649 | 25,826 | 26,137 | 27,069 | ||||||||||
| Net loans | 3,208,367 | 3,155,706 | 3,055,058 | 3,020,856 | 2,986,058 | ||||||||||
| Premises and equipment, net | 29,020 | 29,433 | 29,590 | 29,882 | 29,593 | ||||||||||
| Investment in bank-owned life insurance | 71,105 | 70,557 | 65,036 | 66,000 | 65,501 | ||||||||||
| Goodwill | 64,059 | 64,059 | 64,059 | 64,059 | 64,059 | ||||||||||
| Identifiable intangible assets, net | 10,175 | 10,493 | 10,814 | 11,137 | 11,460 | ||||||||||
| Other assets | 62,484 | 81,099 | 80,088 | 71,577 | 59,365 | ||||||||||
| Total assets | $ | 4,381,115 | $ | 4,204,034 | $ | 3,917,081 | $ | 3,838,210 | $ | 3,771,604 | |||||
| Liabilities: | |||||||||||||||
| Deposits: | |||||||||||||||
| Demand deposits | $ | 585,960 | $ | 566,027 | $ | 512,307 | $ | 539,119 | $ | 537,298 | |||||
| NOW accounts | 427,707 | 404,827 | 414,532 | 394,873 | 412,602 | ||||||||||
| Money market accounts | 730,075 | 794,905 | 675,896 | 763,565 | 823,490 | ||||||||||
| Savings accounts | 358,397 | 357,966 | 342,579 | 331,800 | 326,967 | ||||||||||
| Time deposits | 961,613 | 913,649 | 844,036 | 850,294 | 833,898 | ||||||||||
| Total deposits | 3,063,752 | 3,037,374 | 2,789,350 | 2,879,651 | 2,934,255 | ||||||||||
| Federal Home Loan Bank advances | 848,930 | 671,615 | 640,010 | 487,189 | 378,973 | ||||||||||
| Junior subordinated debentures | 22,681 | 22,681 | 22,681 | 22,681 | 22,681 | ||||||||||
| Other liabilities | 54,948 | 77,037 | 76,708 | 67,409 | 60,307 | ||||||||||
| Total liabilities | 3,990,311 | 3,808,707 | 3,528,749 | 3,456,930 | 3,396,216 | ||||||||||
| Shareholders’ Equity: | |||||||||||||||
| Common stock | 1,073 | 1,069 | 1,068 | 1,064 | 1,064 | ||||||||||
| Paid-in capital | 115,123 | 113,290 | 112,314 | 111,641 | 110,949 | ||||||||||
| Retained earnings | 294,365 | 288,613 | 282,666 | 277,810 | 273,074 | ||||||||||
| Accumulated other comprehensive loss | (19,757 | ) | (7,645 | ) | (7,716 | ) | (9,235 | ) | (9,699 | ) | |||||
| Total shareholders’ equity | 390,804 | 395,327 | 388,332 | 381,280 | 375,388 | ||||||||||
| Total liabilities and shareholders’ equity | $ | 4,381,115 | $ | 4,204,034 | $ | 3,917,081 | $ | 3,838,210 | $ | 3,771,604 | |||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||||||
| (Unaudited; Dollars in thousands, except per share amounts) | ||||||||||||||||||||||
| For the Three Months Ended | For the Twelve Months Ended | |||||||||||||||||||||
| Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Dec 31, 2016 | Dec 31, 2015 | ||||||||||||||||
| Interest income: | ||||||||||||||||||||||
| Interest and fees on loans | $ | 30,738 | $ | 29,633 | $ | 29,122 | $ | 29,998 | $ | 28,511 | $ | 119,491 | $ | 114,229 | ||||||||
| Taxable interest on securities | 3,703 | 3,024 | 2,487 | 2,370 | 2,262 | 11,584 | 8,875 | |||||||||||||||
| Nontaxable interest on securities | 157 | 218 | 280 | 327 | 352 | 982 | 1,555 | |||||||||||||||
| Dividends on Federal Home Loan Bank stock | 362 | 288 | 231 | 210 | 315 | 1,091 | 953 | |||||||||||||||
| Other interest income | 95 | 93 | 70 | 64 | 37 | 322 | 138 | |||||||||||||||
| Total interest and dividend income | 35,055 | 33,256 | 32,190 | 32,969 | 31,477 | 133,470 | 125,750 | |||||||||||||||
| Interest expense: | ||||||||||||||||||||||
| Deposits | 3,445 | 3,110 | 2,981 | 2,968 | 3,097 | 12,504 | 13,142 | |||||||||||||||
| Federal Home Loan Bank advances | 2,886 | 2,641 | 2,313 | 2,152 | 1,966 | 9,992 | 7,746 | |||||||||||||||
| Junior subordinated debentures | 135 | 125 | 119 | 112 | 157 | 491 | 871 | |||||||||||||||
| Other interest expense | 1 | 1 | 1 | 2 | 2 | 5 | 9 | |||||||||||||||
| Total interest expense | 6,467 | 5,877 | 5,414 | 5,234 | 5,222 | 22,992 | 21,768 | |||||||||||||||
| Net interest income | 28,588 | 27,379 | 26,776 | 27,735 | 26,255 | 110,478 | 103,982 | |||||||||||||||
| Provision for loan losses | 2,900 | 1,800 | 450 | 500 | 750 | 5,650 | 1,050 | |||||||||||||||
| Net interest income after provision for loan losses | 25,688 | 25,579 | 26,326 | 27,235 | 25,505 | 104,828 | 102,932 | |||||||||||||||
| Noninterest income: | ||||||||||||||||||||||
| Wealth management revenues | 9,291 | 9,623 | 9,481 | 9,174 | 9,167 | 37,569 | 35,416 | |||||||||||||||
| Mortgage banking revenues | 4,541 | 3,734 | 2,710 | 2,198 | 2,582 | 13,183 | 9,901 | |||||||||||||||
| Service charges on deposit accounts | 945 | 915 | 935 | 907 | 971 | 3,702 | 3,865 | |||||||||||||||
| Card interchange fees | 858 | 870 | 860 | 797 | 810 | 3,385 | 3,199 | |||||||||||||||
| Income from bank-owned life insurance | 549 | 521 | 1,090 | 499 | 502 | 2,659 | 1,982 | |||||||||||||||
| Loan related derivative income | 912 | 1,178 | 508 | 645 | 752 | 3,243 | 2,441 | |||||||||||||||
| Equity in losses of unconsolidated subsidiaries | (89 | ) | (88 | ) | (89 | ) | (88 | ) | (69 | ) | (354 | ) | (293 | ) | ||||||||
| Other income | 313 | 508 | 419 | 502 | 431 | 1,742 | 1,829 | |||||||||||||||
| Total noninterest income | 17,320 | 17,261 | 15,914 | 14,634 | 15,146 | 65,129 | 58,340 | |||||||||||||||
| Noninterest expense: | ||||||||||||||||||||||
| Salaries and employee benefits | 16,528 | 16,908 | 17,405 | 16,380 | 16,053 | 67,221 | 63,024 | |||||||||||||||
| Net occupancy | 1,775 | 1,766 | 1,803 | 1,807 | 1,724 | 7,151 | 7,000 | |||||||||||||||
| Equipment | 1,556 | 1,648 | 1,503 | 1,501 | 1,393 | 6,208 | 5,533 | |||||||||||||||
| Outsourced services | 1,311 | 1,254 | 1,294 | 1,363 | 1,337 | 5,222 | 5,111 | |||||||||||||||
| Legal, audit and professional fees | 597 | 691 | 662 | 629 | 825 | 2,579 | 2,741 | |||||||||||||||
| FDIC deposit insurance costs | 390 | 504 | 491 | 493 | 470 | 1,878 | 1,846 | |||||||||||||||
| Advertising and promotion | 403 | 370 | 420 | 265 | 325 | 1,458 | 1,526 | |||||||||||||||
| Amortization of intangibles | 318 | 321 | 322 | 323 | 333 | 1,284 | 904 | |||||||||||||||
| Debt prepayment penalties | — | — | — | 431 | — | 431 | — | |||||||||||||||
| Acquisition related expenses | — | — | — | — | 52 | — | 989 | |||||||||||||||
| Change in fair value of contingent consideration | — | (939 | ) | 16 | 25 | 41 | (898 | ) | 41 | |||||||||||||
| Other expenses | 2,095 | 2,127 | 2,114 | 2,233 | 2,008 | 8,569 | 8,214 | |||||||||||||||
| Total noninterest expense | 24,973 | 24,650 | 26,030 | 25,450 | 24,561 | 101,103 | 96,929 | |||||||||||||||
| Income before income taxes | 18,035 | 18,190 | 16,210 | 16,419 | 16,090 | 68,854 | 64,343 | |||||||||||||||
| Income tax expense | 5,873 | 5,863 | 5,153 | 5,484 | 5,346 | 22,373 | 20,878 | |||||||||||||||
| Net income | $ | 12,162 | $ | 12,327 | $ | 11,057 | $ | 10,935 | $ | 10,744 | $ | 46,481 | $ | 43,465 | ||||||||
| Net income available to common shareholders: | ||||||||||||||||||||||
| Basic | $ | 12,137 | $ | 12,302 | $ | 11,035 | $ | 10,910 | $ | 10,718 | $ | 46,384 | $ | 43,339 | ||||||||
| Diluted | $ | 12,137 | $ | 12,302 | $ | 11,035 | $ | 10,910 | $ | 10,718 | $ | 46,384 | $ | 43,339 | ||||||||
| Weighted average common shares outstanding: | ||||||||||||||||||||||
| Basic | 17,142 | 17,090 | 17,067 | 17,023 | 17,004 | 17,081 | 16,879 | |||||||||||||||
| Diluted | 17,245 | 17,203 | 17,194 | 17,157 | 17,167 | 17,208 | 17,067 | |||||||||||||||
| Earnings per common share: | ||||||||||||||||||||||
| Basic | $ | 0.71 | $ | 0.72 | $ | 0.65 | $ | 0.64 | $ | 0.63 | $ | 2.72 | $ | 2.57 | ||||||||
| Diluted | $ | 0.70 | $ | 0.72 | $ | 0.64 | $ | 0.64 | $ | 0.62 | $ | 2.70 | $ | 2.54 | ||||||||
| Cash dividends declared per share | $ | 0.37 | $ | 0.37 | $ | 0.36 | $ | 0.36 | $ | 0.34 | $ | 1.46 | $ | 1.36 | ||||||||
| SELECTED FINANCIAL HIGHLIGHTS | |||||||||||||||
| (Unaudited; Dollars in thousands, except per share amounts) | |||||||||||||||
| Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | |||||||||||
| Share and Equity Related Data: | |||||||||||||||
| Book value per share | $ | 22.76 | $ | 23.11 | $ | 22.73 | $ | 22.40 | $ | 22.06 | |||||
| Tangible book value per share - Non-GAAP (1) | $ | 18.44 | $ | 18.75 | $ | 18.35 | $ | 17.98 | $ | 17.62 | |||||
| Market value per share | $ | 56.05 | $ | 40.22 | $ | 37.92 | $ | 37.32 | $ | 39.52 | |||||
| Shares issued and outstanding at end of period | 17,171 | 17,107 | 17,081 | 17,024 | 17,020 | ||||||||||
| Capital Ratios: | |||||||||||||||
| Tier 1 risk-based capital | 11.44% (i) | 11.48 | % | 11.57 | % | 11.56 | % | 11.64 | % | ||||||
| Total risk-based capital | 12.26% (i) | 12.31 | % | 12.43 | % | 12.45 | % | 12.58 | % | ||||||
| Tier 1 leverage ratio | 8.67% (i) | 8.95 | % | 9.21 | % | 9.31 | % | 9.37 | % | ||||||
| Common equity tier 1 | 10.75% (i) | 10.77 | % | 10.84 | % | 10.82 | % | 10.89 | % | ||||||
| Equity to assets | 8.92 | % | 9.40 | % | 9.91 | % | 9.93 | % | 9.95 | % | |||||
| Tangible equity to tangible assets - Non-GAAP (1) | 7.35 | % | 7.77 | % | 8.16 | % | 8.13 | % | 8.11 | % | |||||
| (i) - estimated | |||||||||||||||
| For the Three Months Ended | For the Twelve Months Ended | ||||||||||||||
| Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Dec 31, 2016 | Dec 31, 2015 | |||||||||
| Performance Ratios: | |||||||||||||||
| Net interest margin (FTE) | 2.89 | % | 2.94 | % | 3.05 | % | 3.24 | % | 3.08 | % | 3.02 | % | 3.12 | % | |
| Return on average assets | 1.14 | % | 1.21 | % | 1.14 | % | 1.16 | % | 1.16 | % | 1.16 | % | 1.19 | % | |
| Return on average tangible assets - Non-GAAP (1) | 1.16 | % | 1.24 | % | 1.17 | % | 1.18 | % | 1.19 | % | 1.19 | % | 1.21 | % | |
| Return on average equity | 12.26 | % | 12.57 | % | 11.50 | % | 11.50 | % | 11.52 | % | 11.96 | % | 12.00 | % | |
| Return on average tangible equity - Non-GAAP (1) | 15.09 | % | 15.53 | % | 14.28 | % | 14.34 | % | 14.45 | % | 14.82 | % | 14.79 | % | |
(1) See the section labeled “SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures” at the end of this document.
| SELECTED FINANCIAL HIGHLIGHTS | ||||||||||||||||||||||
| (Unaudited; Dollars in thousands) | ||||||||||||||||||||||
| For the Three Months Ended | For the Twelve Months Ended | |||||||||||||||||||||
| Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Dec 31, 2016 | Dec 31, 2015 | ||||||||||||||||
| Wealth Management Results | ||||||||||||||||||||||
| Wealth Management Revenues: | ||||||||||||||||||||||
| Trust and investment management fees | $ | 8,283 | $ | 8,358 | $ | 8,195 | $ | 8,065 | $ | 8,001 | $ | 32,901 | $ | 30,149 | ||||||||
| Mutual fund fees | 771 | 812 | 812 | 843 | 952 | 3,238 | 4,009 | |||||||||||||||
| Asset-based revenues | 9,054 | 9,170 | 9,007 | 8,908 | 8,953 | 36,139 | 34,158 | |||||||||||||||
| Transaction-based revenues | 237 | 453 | 474 | 266 | 214 | 1,430 | 1,258 | |||||||||||||||
| Total wealth management revenues | $ | 9,291 | $ | 9,623 | $ | 9,481 | $ | 9,174 | $ | 9,167 | $ | 37,569 | $ | 35,416 | ||||||||
| Assets Under Administration: | ||||||||||||||||||||||
| Balance at beginning of period | $ | 6,056,859 | $ | 5,905,019 | $ | 5,878,967 | $ | 5,844,636 | $ | 5,714,201 | $ | 5,844,636 | $ | 5,069,966 | ||||||||
| Acquisition of Halsey Associates, Inc. | — | — | — | — | — | — | 839,994 | |||||||||||||||
| Net investment appreciation (depreciation) & income | (8,506 | ) | 192,518 | 71,447 | 22,389 | 153,953 | 277,848 | (95,228 | ) | |||||||||||||
| Net client asset flows | 14,940 | (40,678 | ) | (45,395 | ) | 11,942 | (23,518 | ) | (59,191 | ) | 29,904 | |||||||||||
| Balance at end of period | $ | 6,063,293 | $ | 6,056,859 | $ | 5,905,019 | $ | 5,878,967 | $ | 5,844,636 | $ | 6,063,293 | $ | 5,844,636 | ||||||||
| Mortgage Banking Results | ||||||||||||||||||||||
| Mortgage Banking Revenues: | ||||||||||||||||||||||
| Gains & commissions on loan sales, net | $ | 4,455 | $ | 3,744 | $ | 2,804 | $ | 2,134 | $ | 2,528 | $ | 13,137 | $ | 9,825 | ||||||||
| Residential mortgage servicing fee income, net | 86 | (10 | ) | (94 | ) | 64 | 54 | 46 | 76 | |||||||||||||
| Total mortgage banking revenues | $ | 4,541 | $ | 3,734 | $ | 2,710 | $ | 2,198 | $ | 2,582 | $ | 13,183 | $ | 9,901 | ||||||||
| Residential Mortgage Loan Originations: | ||||||||||||||||||||||
| Originations for retention in portfolio | $ | 72,533 | $ | 90,308 | $ | 54,080 | $ | 47,545 | $ | 38,080 | $ | 264,466 | $ | 234,852 | ||||||||
| Originations for sale to secondary market (1) | 185,626 | 170,673 | 154,043 | 90,458 | 134,125 | $ | 600,800 | 523,834 | ||||||||||||||
| Total mortgage loan originations | $ | 258,159 | $ | 260,981 | $ | 208,123 | $ | 138,003 | $ | 172,205 | $ | 865,266 | $ | 758,686 | ||||||||
| Residential Mortgage Loans Sold: | ||||||||||||||||||||||
| Sold with servicing rights retained | $ | 48,545 | $ | 44,611 | $ | 45,804 | $ | 26,454 | $ | 44,493 | $ | 165,414 | $ | 162,224 | ||||||||
| Sold with servicing rights released (1) | 151,506 | 119,572 | 93,239 | 79,507 | 82,906 | $ | 443,824 | 368,676 | ||||||||||||||
| Total mortgage loans sold | $ | 200,051 | $ | 164,183 | $ | 139,043 | $ | 105,961 | $ | 127,399 | $ | 609,238 | $ | 530,900 | ||||||||
(1) Also includes loans originated in a broker capacity.
| END OF PERIOD LOAN AND DEPOSIT COMPOSITION | |||||||||||||||
| (Unaudited; Dollars in thousands) | |||||||||||||||
| Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | |||||||||||
| Commercial: | |||||||||||||||
| Mortgages | $ | 1,074,186 | $ | 1,086,175 | $ | 1,074,747 | $ | 976,931 | $ | 931,953 | |||||
| Construction & development | 121,371 | 98,735 | 81,812 | 123,032 | 122,297 | ||||||||||
| Commercial & industrial | 576,109 | 572,305 | 575,661 | 598,848 | 600,297 | ||||||||||
| Total commercial | 1,771,666 | 1,757,215 | 1,732,220 | 1,698,811 | 1,654,547 | ||||||||||
| Residential real estate: | |||||||||||||||
| Mortgages | 1,094,824 | 1,052,829 | 978,399 | 980,274 | 984,437 | ||||||||||
| Homeowner construction | 27,924 | 27,058 | 26,637 | 24,075 | 29,118 | ||||||||||
| Total residential real estate | 1,122,748 | 1,079,887 | 1,005,036 | 1,004,349 | 1,013,555 | ||||||||||
| Consumer: | |||||||||||||||
| Home equity lines | 264,200 | 265,238 | 260,541 | 258,513 | 255,565 | ||||||||||
| Home equity loans | 37,272 | 38,264 | 39,572 | 45,499 | 46,649 | ||||||||||
| Other | 38,485 | 40,751 | 43,515 | 39,821 | 42,811 | ||||||||||
| Total consumer | 339,957 | 344,253 | 343,628 | 343,833 | 345,025 | ||||||||||
| Total loans | $ | 3,234,371 | $ | 3,181,355 | $ | 3,080,884 | $ | 3,046,993 | $ | 3,013,127 | |||||
| December 31, 2016 | December 31, 2015 | ||||||||||
| Balance | % of Total | Balance | % of Total | ||||||||
| Commercial Real Estate Loans by Property Location: | |||||||||||
| Rhode Island, Connecticut, Massachusetts | $ | 1,105,539 | 92.5 | % | $ | 959,883 | 91.0 | % | |||
| New York, New Jersey, Pennsylvania | 77,038 | 6.4 | % | 80,989 | 7.7 | % | |||||
| New Hampshire | 12,980 | 1.1 | % | 13,377 | 1.3 | % | |||||
| Total commercial real estate loans (1) | $ | 1,195,557 | 100.0 | % | $ | 1,054,249 | 100.0 | % | |||
| Residential Mortgages by Property Location: | |||||||||||
| Rhode Island, Connecticut, Massachusetts | $ | 1,106,366 | 98.6 | % | $ | 995,743 | 98.2 | % | |||
| New Hampshire, Vermont, Maine | 11,445 | 1.0 | % | 10,186 | 1.0 | % | |||||
| New York, Virginia, New Jersey, Maryland, Pennsylvania | 2,648 | 0.2 | % | 4,163 | 0.4 | % | |||||
| Ohio | 997 | 0.1 | % | 1,557 | 0.2 | % | |||||
| Other | 1,292 | 0.1 | % | 1,906 | 0.2 | % | |||||
| Total residential mortgages | $ | 1,122,748 | 100.0 | % | $ | 1,013,555 | 100.0 | % | |||
(1) Commercial real estate loans consist of commercial mortgages and construction and development loans. Commercial mortgages are loans secured by income producing property.
| Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | |||||||||||
| Deposits: | |||||||||||||||
| Non-interest bearing demand deposits | $ | 521,165 | $ | 520,860 | $ | 476,848 | $ | 474,477 | $ | 475,398 | |||||
| Interest-bearing demand deposits | 64,795 | 45,167 | 35,459 | 64,642 | 61,900 | ||||||||||
| NOW accounts | 427,707 | 404,827 | 414,532 | 394,873 | 412,602 | ||||||||||
| Money market accounts | 730,075 | 794,905 | 675,896 | 763,565 | 823,490 | ||||||||||
| Savings accounts | 358,397 | 357,966 | 342,579 | 331,800 | 326,967 | ||||||||||
| Time deposits (in-market) | 549,376 | 554,669 | 549,935 | 540,815 | 531,419 | ||||||||||
| Wholesale brokered time deposits | 412,237 | 358,980 | 294,101 | 309,479 | 302,479 | ||||||||||
| Total deposits | $ | 3,063,752 | $ | 3,037,374 | $ | 2,789,350 | $ | 2,879,651 | $ | 2,934,255 | |||||
| CREDIT & ASSET QUALITY DATA | |||||||||||||||
| (Unaudited; Dollars in thousands) | |||||||||||||||
| Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | |||||||||||
| Asset Quality Ratios: | |||||||||||||||
| Nonperforming assets to total assets | 0.53 | % | 0.59 | % | 0.48 | % | 0.49 | % | 0.58 | % | |||||
| Nonaccrual loans to total loans | 0.68 | % | 0.75 | % | 0.56 | % | 0.57 | % | 0.70 | % | |||||
| Allowance for loan losses to nonaccrual loans | 117.89 | % | 107.09 | % | 149.73 | % | 150.00 | % | 128.61 | % | |||||
| Allowance for loan losses to total loans | 0.80 | % | 0.81 | % | 0.84 | % | 0.86 | % | 0.90 | % | |||||
| Nonperforming Assets: | |||||||||||||||
| Commercial mortgages | $ | 7,811 | $ | 10,357 | $ | 4,054 | $ | 4,054 | $ | 5,711 | |||||
| Commercial construction & development | — | — | — | — | — | ||||||||||
| Commercial & industrial | 1,337 | 1,744 | 1,204 | 2,659 | 3,018 | ||||||||||
| Residential real estate mortgages | 11,736 | 10,140 | 10,409 | 9,367 | 10,666 | ||||||||||
| Consumer | 1,174 | 1,709 | 1,581 | 1,345 | 1,652 | ||||||||||
| Total nonaccrual loans | 22,058 | 23,950 | 17,248 | 17,425 | 21,047 | ||||||||||
| Other real estate owned | 1,075 | 1,045 | 1,515 | 1,326 | 716 | ||||||||||
| Total nonperforming assets | $ | 23,133 | $ | 24,995 | $ | 18,763 | $ | 18,751 | $ | 21,763 | |||||
| Past Due Loans: | |||||||||||||||
| Commercial mortgages | $ | 8,708 | $ | 10,352 | $ | 4,062 | $ | 4,564 | $ | 4,555 | |||||
| Commercial & industrial | 1,154 | 1,047 | 1,978 | 2,906 | 462 | ||||||||||
| Residential real estate mortgages | 12,226 | 8,291 | 8,893 | 8,703 | 9,286 | ||||||||||
| Consumer loans | 2,334 | 1,565 | 2,201 | 2,122 | 3,256 | ||||||||||
| Total past due loans | $ | 24,422 | $ | 21,255 | $ | 17,134 | $ | 18,295 | $ | 17,559 | |||||
| Total past due loans to total loans | 0.76 | % | 0.67 | % | 0.56 | % | 0.60 | % | 0.58 | % | |||||
| Accruing loans 90 days or more past due | $ | — | $ | — | $ | — | $ | — | $ | — | |||||
| Nonaccrual loans included in past due loans | $ | 18,602 | $ | 18,796 | $ | 13,211 | $ | 14,030 | $ | 13,635 | |||||
| For the Three Months Ended | For the Twelve Months Ended | |||||||||||||||||||||
| Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Dec 31, 2016 | Dec 31, 2015 | ||||||||||||||||
| Nonaccrual Loan Activity: | ||||||||||||||||||||||
| Balance at beginning of period | $ | 23,950 | $ | 17,248 | $ | 17,425 | $ | 21,047 | $ | 16,844 | $ | 21,047 | $ | 15,945 | ||||||||
| Additions to nonaccrual status | 2,105 | 9,750 | 2,072 | 1,352 | 7,029 | 15,278 | 14,964 | |||||||||||||||
| Loans returned to accruing status | (718 | ) | (592 | ) | — | (206 | ) | (303 | ) | (1,516 | ) | (2,489 | ) | |||||||||
| Loans charged-off | (2,622 | ) | (2,055 | ) | (860 | ) | (1,475 | ) | (904 | ) | (7,012 | ) | (2,305 | ) | ||||||||
| Loans transferred to other real estate owned | (30 | ) | — | (435 | ) | (610 | ) | (716 | ) | (1,075 | ) | (1,206 | ) | |||||||||
| Payments, payoffs and other changes | (627 | ) | (401 | ) | (954 | ) | (2,683 | ) | (903 | ) | (4,664 | ) | (3,862 | ) | ||||||||
| Balance at end of period | $ | 22,058 | $ | 23,950 | $ | 17,248 | $ | 17,425 | $ | 21,047 | $ | 22,058 | $ | 21,047 | ||||||||
| Allowance for Loan Losses: | ||||||||||||||||||||||
| Balance at beginning of period | $ | 25,649 | $ | 25,826 | $ | 26,137 | $ | 27,069 | $ | 27,161 | $ | 27,069 | $ | 28,023 | ||||||||
| Provision charged to earnings | 2,900 | 1,800 | 450 | 500 | 750 | 5,650 | 1,050 | |||||||||||||||
| Charge-offs | (2,622 | ) | (2,055 | ) | (860 | ) | (1,475 | ) | (904 | ) | (7,012 | ) | (2,305 | ) | ||||||||
| Recoveries | 77 | 78 | 99 | 43 | 62 | 297 | 301 | |||||||||||||||
| Balance at end of period | $ | 26,004 | $ | 25,649 | $ | 25,826 | $ | 26,137 | $ | 27,069 | $ | 26,004 | $ | 27,069 | ||||||||
| Net Loan Charge-Offs (Recoveries): | ||||||||||||||||||||||
| Commercial mortgages | $ | 2,510 | $ | 1,936 | $ | 65 | $ | 1,249 | $ | 405 | $ | 5,760 | $ | 717 | ||||||||
| Commercial & industrial | (20 | ) | (43 | ) | 684 | (18 | ) | 217 | 603 | 584 | ||||||||||||
| Residential real estate mortgages | 6 | 47 | 2 | 134 | 117 | 189 | 179 | |||||||||||||||
| Consumer | 49 | 37 | 10 | 67 | 103 | 163 | 524 | |||||||||||||||
| Total | $ | 2,545 | $ | 1,977 | $ | 761 | $ | 1,432 | $ | 842 | $ | 6,715 | $ | 2,004 | ||||||||
| Net charge-offs to average loans (annualized) | 0.31 | % | 0.25 | % | 0.10 | % | 0.19 | % | 0.11 | % | 0.21 | % | 0.07 | % | ||||||||
The following table presents average balance and interest rate information. Tax-exempt income is converted to a fully taxable equivalent basis using the statutory federal income tax rate adjusted for applicable state income taxes net of the related federal tax benefit. Unrealized gains (losses) on available for sale securities and fair value adjustments on mortgage loans held for sale are excluded from the average balance and yield calculations. Nonaccrual and renegotiated loans, as well as interest recognized on these loans are included in amounts presented for loans.
| CONSOLIDATED AVERAGE BALANCE SHEETS | ||||||||||||||||||||||||||
| (Unaudited; Dollars in thousands) | ||||||||||||||||||||||||||
| For the Three Months Ended | December 31, 2016 | September 30, 2016 | December 31, 2015 | |||||||||||||||||||||||
| Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | ||||||||||||||||||
| Assets: | ||||||||||||||||||||||||||
| Commercial mortgages | $ | 1,086,772 | $ | 9,520 | 3.48 | $ | 1,079,917 | $ | 9,362 | 3.45 | $ | 885,967 | $ | 7,887 | 3.53 | |||||||||||
| Construction & development | 110,342 | 927 | 3.34 | 86,623 | 712 | 3.27 | 134,243 | 1,004 | 2.97 | |||||||||||||||||
| Commercial & industrial | 575,983 | 6,927 | 4.78 | 565,170 | 6,382 | 4.49 | 581,584 | 6,520 | 4.45 | |||||||||||||||||
| Total commercial loans | 1,773,097 | $ | 17,374 | 3.90 | 1,731,710 | $ | 16,456 | 3.78 | 1,601,794 | $ | 15,411 | 3.82 | ||||||||||||||
| Residential real estate loans, including loans held for sale | 1,140,492 | 10,652 | 3.72 | 1,080,302 | 10,386 | 3.82 | 1,049,007 | 10,338 | 3.91 | |||||||||||||||||
| Consumer loans | 341,528 | 3,284 | 3.83 | 341,829 | 3,340 | 3.89 | 344,690 | 3,251 | 3.74 | |||||||||||||||||
| Total loans | 3,255,117 | 31,310 | 3.83 | 3,153,841 | 30,182 | 3.81 | 2,995,491 | 29,000 | 3.84 | |||||||||||||||||
| Cash, federal funds sold and short-term investments | 77,092 | 95 | 0.49 | 88,414 | 93 | 0.42 | 72,031 | 37 | 0.20 | |||||||||||||||||
| FHLBB stock | 39,212 | 362 | 3.67 | 37,933 | 288 | 3.02 | 24,316 | 315 | 5.14 | |||||||||||||||||
| Taxable debt securities | 636,277 | 3,703 | 2.32 | 497,738 | 3,024 | 2.42 | 341,130 | 2,262 | 2.63 | |||||||||||||||||
| Nontaxable debt securities | 16,003 | 244 | 6.07 | 22,038 | 336 | 6.07 | 35,799 | 550 | 6.10 | |||||||||||||||||
| Total securities | 652,280 | 3,947 | 2.41 | 519,776 | 3,360 | 2.57 | 376,929 | 2,812 | 2.96 | |||||||||||||||||
| Total interest-earning assets | 4,023,701 | 35,714 | 3.53 | 3,799,964 | 33,923 | 3.55 | 3,468,767 | 32,164 | 3.68 | |||||||||||||||||
| Noninterest-earning assets | 249,182 | 262,724 | 231,674 | |||||||||||||||||||||||
| Total assets | $ | 4,272,883 | $ | 4,062,688 | $ | 3,700,441 | ||||||||||||||||||||
| Liabilities and Shareholders' Equity: | ||||||||||||||||||||||||||
| Interest-bearing demand deposits | $ | 46,668 | $ | 16 | 0.14 | $ | 39,865 | $ | 13 | 0.13 | $ | 42,324 | $ | 11 | 0.10 | |||||||||||
| NOW accounts | 408,788 | 51 | 0.05 | 402,307 | 51 | 0.05 | 376,185 | 56 | 0.06 | |||||||||||||||||
| Money market accounts | 761,582 | 574 | 0.30 | 709,549 | 487 | 0.27 | 856,405 | 707 | 0.33 | |||||||||||||||||
| Savings accounts | 356,837 | 51 | 0.06 | 352,032 | 52 | 0.06 | 310,608 | 47 | 0.06 | |||||||||||||||||
| Time deposits (in-market) | 552,474 | 1,419 | 1.02 | 552,576 | 1,408 | 1.01 | 533,224 | 1,333 | 0.99 | |||||||||||||||||
| Wholesale brokered time deposits | 382,798 | 1,334 | 1.39 | 310,740 | 1,099 | 1.41 | 277,681 | 943 | 1.35 | |||||||||||||||||
| FHLBB advances | 732,269 | 2,886 | 1.57 | 690,843 | 2,641 | 1.52 | 373,652 | 1,966 | 2.09 | |||||||||||||||||
| Junior subordinated debentures | 22,681 | 135 | 2.37 | 22,681 | 125 | 2.19 | 22,681 | 157 | 2.75 | |||||||||||||||||
| Other | 40 | 1 | 9.95 | 53 | 1 | 7.51 | 92 | 2 | 8.62 | |||||||||||||||||
| Total interest-bearing liabilities | 3,264,137 | 6,467 | 0.79 | 3,080,646 | 5,877 | 0.76 | 2,792,852 | 5,222 | 0.74 | |||||||||||||||||
| Demand deposits | 548,595 | 520,439 | 475,215 | |||||||||||||||||||||||
| Other liabilities | 63,410 | 69,370 | 59,177 | |||||||||||||||||||||||
| Shareholders' equity | 396,741 | 392,233 | 373,197 | |||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 4,272,883 | $ | 4,062,688 | $ | 3,700,441 | ||||||||||||||||||||
| Net interest income (FTE) | $ | 29,247 | $ | 28,046 | $ | 26,942 | ||||||||||||||||||||
| Interest rate spread | 2.74 | 2.79 | 2.94 | |||||||||||||||||||||||
| Net interest margin | 2.89 | 2.94 | 3.08 | |||||||||||||||||||||||
Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:
| For the Three Months Ended | Dec 31, 2016 | Sep 30, 2016 | Dec 31, 2015 | ||||||
| Commercial loans | $ | 572 | $ | 549 | $ | 489 | |||
| Nontaxable debt securities | 87 | 118 | 198 | ||||||
| Total | $ | 659 | $ | 667 | $ | 687 | |||
| CONSOLIDATED AVERAGE BALANCE SHEETS | |||||||||||||||||
| (Unaudited; Dollars in thousands) | |||||||||||||||||
| For the Twelve Months Ended | December 31, 2016 | December 31, 2015 | |||||||||||||||
| Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | ||||||||||||
| Assets: | |||||||||||||||||
| Commercial mortgages | $ | 1,030,289 | $ | 36,089 | 3.50 | $ | 870,241 | $ | 31,281 | 3.59 | |||||||
| Construction & development | 110,770 | 3,732 | 3.37 | 109,198 | 3,340 | 3.06 | |||||||||||
| Commercial & industrial | 584,307 | 27,398 | 4.69 | 593,799 | 27,507 | 4.63 | |||||||||||
| Total commercial loans | 1,725,366 | 67,219 | 3.90 | 1,573,238 | 62,128 | 3.95 | |||||||||||
| Residential real estate loans, including loans held for sale | 1,069,402 | 41,173 | 3.85 | 1,038,836 | 41,083 | 3.95 | |||||||||||
| Consumer loans | 342,431 | 13,328 | 3.89 | 340,889 | 12,885 | 3.78 | |||||||||||
| Total loans | 3,137,199 | 121,720 | 3.88 | 2,952,963 | 116,096 | 3.93 | |||||||||||
| Cash, federal funds sold and short-term investments | 75,997 | 322 | 0.42 | 69,169 | 138 | 0.20 | |||||||||||
| FHLBB stock | 33,643 | 1,091 | 3.24 | 34,349 | 953 | 2.77 | |||||||||||
| Taxable debt securities | 472,892 | 11,584 | 2.45 | 325,166 | 8,875 | 2.73 | |||||||||||
| Nontaxable debt securities | 24,939 | 1,520 | 6.09 | 39,751 | 2,408 | 6.06 | |||||||||||
| Total securities | 497,831 | 13,104 | 2.63 | 364,917 | 11,283 | 3.09 | |||||||||||
| Total interest-earning assets | 3,744,670 | 136,237 | 3.64 | 3,421,398 | 128,470 | 3.75 | |||||||||||
| Noninterest-earning assets | 249,808 | 226,623 | |||||||||||||||
| Total assets | $ | 3,994,478 | $ | 3,648,021 | |||||||||||||
| Liabilities and Shareholders' Equity: | |||||||||||||||||
| Interest-bearing demand deposits | $ | 45,038 | $ | 49 | 0.11 | $ | 37,168 | $ | 27 | 0.07 | |||||||
| NOW accounts | 400,209 | 212 | 0.05 | 356,713 | 209 | 0.06 | |||||||||||
| Money market accounts | 741,925 | 2,035 | 0.27 | 824,625 | 3,482 | 0.42 | |||||||||||
| Savings accounts | 343,943 | 200 | 0.06 | 301,652 | 196 | 0.06 | |||||||||||
| Time deposits (in-market) | 546,460 | 5,486 | 1.00 | 549,039 | 5,531 | 1.01 | |||||||||||
| Wholesale brokered time deposits | 323,390 | 4,522 | 1.40 | 284,448 | 3,697 | 1.30 | |||||||||||
| FHLBB advances | 616,404 | 9,992 | 1.62 | 398,866 | 7,746 | 1.94 | |||||||||||
| Junior subordinated debentures | 22,681 | 491 | 2.16 | 22,681 | 871 | 3.84 | |||||||||||
| Other | 60 | 5 | 8.33 | 110 | 9 | 8.18 | |||||||||||
| Total interest-bearing liabilities | 3,040,110 | 22,992 | 0.76 | 2,775,302 | 21,768 | 0.78 | |||||||||||
| Demand deposits | 503,806 | 458,369 | |||||||||||||||
| Other liabilities | 62,021 | 52,152 | |||||||||||||||
| Shareholders' equity | 388,541 | 362,198 | |||||||||||||||
| Total liabilities and shareholders' equity | $ | 3,994,478 | $ | 3,648,021 | |||||||||||||
| Net interest income (FTE) | $ | 113,245 | $ | 106,702 | |||||||||||||
| Interest rate spread | 2.88 | 2.97 | |||||||||||||||
| Net interest margin | 3.02 | 3.12 | |||||||||||||||
Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:
| For the Twelve Months Ended | Dec 31, 2016 | Dec 31, 2015 | ||||
| Commercial loans | $ | 2,229 | $ | 1,867 | ||
| Nontaxable debt securities | 538 | 853 | ||||
| Total | $ | 2,767 | $ | 2,720 | ||
| SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures | |||||||||||||||
| (Unaudited; Dollars in thousands, except per share amounts) | |||||||||||||||
| Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | |||||||||||
| Tangible Book Value per Share: | |||||||||||||||
| Total shareholders' equity, as reported | $ | 390,804 | $ | 395,327 | $ | 388,332 | $ | 381,280 | $ | 375,388 | |||||
| Less: | |||||||||||||||
| Goodwill | 64,059 | 64,059 | 64,059 | 64,059 | 64,059 | ||||||||||
| Identifiable intangible assets, net | 10,175 | 10,493 | 10,814 | 11,137 | 11,460 | ||||||||||
| Total tangible shareholders' equity | $ | 316,570 | $ | 320,775 | $ | 313,459 | $ | 306,084 | $ | 299,869 | |||||
| Shares outstanding, as reported | 17,171 | 17,107 | 17,081 | 17,024 | 17,020 | ||||||||||
| Book value per share - GAAP | $ | 22.76 | $ | 23.11 | $ | 22.73 | $ | 22.40 | $ | 22.06 | |||||
| Tangible book value per share - Non-GAAP | $ | 18.44 | $ | 18.75 | $ | 18.35 | $ | 17.98 | $ | 17.62 | |||||
| Tangible Equity to Tangible Assets: | |||||||||||||||
| Total tangible shareholders' equity | $ | 316,570 | $ | 320,775 | $ | 313,459 | $ | 306,084 | $ | 299,869 | |||||
| Total assets, as reported | $ | 4,381,115 | $ | 4,204,034 | $ | 3,917,081 | $ | 3,838,210 | $ | 3,771,604 | |||||
| Less: | |||||||||||||||
| Goodwill | 64,059 | 64,059 | 64,059 | 64,059 | 64,059 | ||||||||||
| Identifiable intangible assets, net | 10,175 | 10,493 | 10,814 | 11,137 | 11,460 | ||||||||||
| Total tangible assets | $ | 4,306,881 | $ | 4,129,482 | $ | 3,842,208 | $ | 3,763,014 | $ | 3,696,085 | |||||
| Equity to assets - GAAP | 8.92 | % | 9.40 | % | 9.91 | % | 9.93 | % | 9.95 | % | |||||
| Tangible equity to tangible assets - Non-GAAP | 7.35 | % | 7.77 | % | 8.16 | % | 8.13 | % | 8.11 | % | |||||
| For the Three Months Ended | For the Twelve Months Ended | |||||||||||||||||||||
| Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Dec 31, 2016 | Dec 31, 2015 | ||||||||||||||||
| Return on Average Tangible Assets: | ||||||||||||||||||||||
| Net income, as reported | $ | 12,162 | $ | 12,327 | $ | 11,057 | $ | 10,935 | $ | 10,744 | $ | 46,481 | $ | 43,465 | ||||||||
| Total average assets, as reported | $ | 4,272,883 | $ | 4,062,688 | $ | 3,869,508 | $ | 3,769,025 | $ | 3,700,441 | $ | 3,994,478 | $ | 3,648,021 | ||||||||
| Less average balances of: | ||||||||||||||||||||||
| Goodwill | 64,059 | 64,059 | 64,059 | 64,059 | 64,194 | 64,059 | 60,657 | |||||||||||||||
| Identifiable intangible assets, net | 10,330 | 10,650 | 10,972 | 11,294 | 11,616 | 10,810 | 7,625 | |||||||||||||||
| Total average tangible assets | $ | 4,198,494 | $ | 3,987,979 | $ | 3,794,477 | $ | 3,693,672 | $ | 3,624,631 | $ | 3,919,609 | $ | 3,579,739 | ||||||||
| Return on average assets - GAAP | 1.14 | % | 1.21 | % | 1.14 | % | 1.16 | % | 1.16 | % | 1.16 | % | 1.19 | % | ||||||||
| Return on average tangible assets - Non-GAAP | 1.16 | % | 1.24 | % | 1.17 | % | 1.18 | % | 1.19 | % | 1.19 | % | 1.21 | % | ||||||||
| Return on Average Tangible Equity: | ||||||||||||||||||||||
| Net income, as reported | $ | 12,162 | $ | 12,327 | $ | 11,057 | $ | 10,935 | $ | 10,744 | $ | 46,481 | $ | 43,465 | ||||||||
| Total average equity, as reported | $ | 396,741 | $ | 392,233 | $ | 384,717 | $ | 380,342 | $ | 373,197 | $ | 388,541 | $ | 362,198 | ||||||||
| Less average balances of: | ||||||||||||||||||||||
| Goodwill | 64,059 | 64,059 | 64,059 | 64,059 | 64,194 | 64,059 | 60,657 | |||||||||||||||
| Identifiable intangible assets, net | 10,330 | 10,650 | 10,972 | 11,294 | 11,616 | 10,810 | 7,625 | |||||||||||||||
| Total average tangible equity | $ | 322,352 | $ | 317,524 | $ | 309,686 | $ | 304,989 | $ | 297,387 | $ | 313,672 | $ | 293,916 | ||||||||
| Return on average equity - GAAP | 12.26 | % | 12.57 | % | 11.50 | % | 11.50 | % | 11.52 | % | 11.96 | % | 12.00 | % | ||||||||
| Return on average tangible equity - Non-GAAP | 15.09 | % | 15.53 | % | 14.28 | % | 14.34 | % | 14.45 | % | 14.82 | % | 14.79 | % | ||||||||
Contact: Elizabeth B. Eckel Senior Vice President, Marketing Telephone: (401) 348-1309 E-mail: [email protected]
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