The Rhode Island parent company of The Washington Trust Co., which operates branches in Sharon and Wellesley, has reported third quarter net income of $4.9 million, down more than 18 percent year-over-year on a $700,000 bump in loan loss provisions, higher FDIC premiums and a lack of Federal Home Loan Bank of Boston dividends.
Through Sept. 30, Washington Trust Bancorp Inc. recorded net income of $11.3 million, down 37 percent from the same period last year.
The loan loss provision charged to earnings amounted to $1.8 million fin the third quarter, compared to $1.1 million for the third quarter of 2008. FDIC deposit insurance premiums in the quarter were up $543,000 year-over-year, reflecting higher assessment rates, the company said.
Last year in the third quarter, Washington Trust pulled in $292,000 in dividend income from the Federal Home Loan Bank of Boston. This year, no dividends were paid.
Non-performing assets rose in the third quarter as well, to $27.9 million from $24.8 million last year.
On a positive note, net gains on loan sales and commissions on loans originated for others in the third quarter of 2009 were up $352,000 from the same quarter a year ago, due to strong residential mortgage refinancing and sales activity, the company said.
Total loans grew by $15 million in the third quarter, with growth of $49 million in the commercial real estate portfolio, offset in part by a $20 million decline in other commercial loans and a $14 million decrease in the residential loan portfolio.
Total deposits amounted to $1.89 billion at the end of the third quarter, up by $10 million from the end of the second quarter and $103 million, or 6 percent, from the end of last year.
"We are pleased with Washington Trust’s third quarter performance in these challenging times," John C. Warren, Washington Trust Bancorp Inc.’s chairman and CEO, said in a statement. "It is a testament to our sound business model and strong corporate brand that we were able to outperform market expectations during a period of continued economic uncertainty."