Washington Trust Bancorp Inc., the parent company of the Westerly, R.I.-based Washington Trust Co., announced net income of $10 million for the third quarter this year, up 12.4 percent from $8.9 million for the same period last year.
"Washington Trust’s third quarter results mark our highest quarterly earnings in 213 years," Joseph MarcAurele, Washington Trust chairman and CEO, said in a statement. "We also continued to lay the foundation for future growth, naming Edward "Ned" Handy, III as president and chief operating officer, breaking ground for our new Johnston branch and announcing a second 2013 dividend increase."
Net interest income increased $1 million to $23.4 million during the third quarter from the second quarter of 2013. The net interest margin for the third quarter of 2013 was 3.29 percent, compared with 3.26 percent for the second quarter of 2013.
Total nonaccrual loans totaled $19.5 million, or 0.83 percent of total loans, at the end of September, compared with $20 million, or 0.84 percent, the previous quarter. Total past due loans amounted to $24 million, or 1.02 percent of total loans, compared with $26.1 million, or 1.09 percent, at June 30.
The loan loss provision charged to earnings in the third quarter of 2013 remained unchanged from the previous quarter level of $700,000. Net charge-offs totaled $576,000 in the third quarter of 2013, compared with $4 million in the previous quarter, which was comprised primarily of a $4 million charge-off on one commercial mortgage loan. The allowance for loan losses was $28 million, or 1.19 percent of total loans, at Sept. 30, compared with $27.9 million, or 1.17 percent of total loans, at June 30.
Total loans declined $31.2 million from June 30, largely due to the sale of residential mortgage portfolio loans totaling $48.7 million with a weighted average interest rate of 3.94 percent and a weighted average remaining maturity of 24 years. This sale resulted in a gain of $977,000, which was included in net gains on sales of loans and commissions on loans originated for others in the third quarter. The purpose of this sale was primarily to reduce the interest rate risk exposure associated with holding longer term fixed rate assets in a rising rate environment. Total loans increased $59.8 million, or 3 percent, from the end of 2012.
Washington Trust is headquartered in Rhode Island, with locations and mortgage offices in Massachusetts and Connecticut.
