Westerly, Rhode Island-based Washington Trust Bancorp increased its net income 20 percent year-over-year in the third quarter and boosted its assets above $4 billion for the very first time.
“Our third quarter results reflect the strength and diversity of our business model, as we generated key revenues from our core business lines,” Chairman and CEO Joseph J. MarcAurele said in a statement. “We also posted record earnings and surpassed $4 billion in total assets for the first time in our 216-year history.”
Net interest income totaled $27.4 million, up about 5.3 percent from a year ago and 2.25 percent from the prior quarter.
Total loans increased 8 percent year-over-year to $3.2 billion. Its commercial portfolio increased 11.3 percent to about $1.7 billion, and its residential real estate portfolio increased 5.4 percent to about $1.08 billion in that period. Total assets stood at $4.2 billion, compared with $3.7 billion a year ago.
Total deposits increased 7 percent year-over-year to $3 billion.
Returns on average equity and average assets were 12.57 percent and 1.21 percent, respectively, compared with 11.50 percent and 1.14 percent in the prior quarter.
Noninterest income totaled $17.3 million, compared with $15.9 million in the prior quarter and $13.9 million a year ago.
Wealth management assets at the end of quarter stood in excess of $6 billion and third quarter revenues totaled $9.6 million, representing record highs for Washington Trust.
Mortgage banking revenues totaled $3.7 million, up 38 percent on a linked quarter basis. Mortgage loans sold to the secondary market totaled $164 million, the highest quarterly volume in the bank’s history.
In September, Washington Trust declared a quarterly dividend of 37 cents per share, representing a 1 cent per share increase over the previous quarter and the second dividend increase in 2016.
Past due loans totaled $21.3 million, representing 0.67 percent of total loans, as of Sept. 30, compared with $17.1 million and 0.56 percent at June 30. Nonaccrual loans totaled $24 million, or 0.75 percent of total loans, on Sept. 30, compared with $17.2 million, or 0.56 percent of total loans, at June 30. The bank said in a statement that the increase in both past due loans and nonaccrual loans was due to one commercial real estate relationship, previously modified in a troubled debt restructuring, with a carrying value of $6.3 million as of Sept. 30. During the third quarter, a $1.9 million charge-off was recognized on this relationship.
A loan loss provision totaling $1.8 million was charged to earnings in the third quarter, compared with a loan loss provision of $450,000 recognized in the second quarter of 2016. The increase in loan loss provision was primarily due to the additional loss exposure allocated to the commercial real estate relationship noted above. The allowance for loan losses was $25.6 million, or 0.81 percent of total loans, at Sept. 30, compared to $25.8 million, or 0.84 percent of total loans, at June 30.
