WashTrust sets profit record in 2016, growing loans and wealth management revenue

WASHINGTON TRUST BANCORP, parent of The Washington Trust Co., set a profit record in 2016, posting net income of $46.5 million, an increase on its 2015 performance.
WASHINGTON TRUST BANCORP, parent of The Washington Trust Co., set a profit record in 2016, posting net income of $46.5 million, an increase on its 2015 performance.

WESTERLY – Double-digit fourth-quarter net income growth fueled record-breaking 2016 profit for Washington Trust Bancorp Inc., which posted earnings of $46.5 million on the year, an increase of 6.9 percent compared with 2015. Earnings per diluted share totaled $2.70, compared with $2.54 in 2015.

The parent of The Washington Trust Co. based in Westerly reported profit for the quarter ended Dec. 31 of $12.2 million, which represented year-over-year growth of 13.2 percent.

Earnings per diluted share totaled 70 cents, compared with 62 cents a year earlier.

“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,” said Joseph J. MarcAurele, chairman and CEO, in prepared remarks.

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Total interest and dividend income, and total noninterest income grew 12.3 percent to $52.4 million for the quarter, and 7.9 percent to $198.6 million for 2016.

The bank realized a boost from its loan portfolio, which grew 7.34 percent to $3.23 billion year over year. The loan book got a boost in residential real estate, which grew 10.8 percent to $1.1 billion compared to a year earlier. During the fourth quarter, Washington Trust purchased $36 million of residential mortgages from another financial institution, predominately secured by properties in Massachusetts.

Total nonperforming assets grew 6.3 percent to $23.1 million. Total past-due loans to total loans grew to 0.76 percent compared with 0.58 percent the prior year.

Total securities grew 91.2 percent to $755.5 million compared with the prior year, as the bank steadily increased its investment securities portfolio in the second half of the year.

During the fourth quarter, the bank purchased government agency mortgage-backed debt securities and agency debt securities totaling $234 million with a weighted average yield of 2.55 percent.

Total 2016 assets grew 16.2 percent to $4.38 billion.

The bank’s wealth management business continued to grow. Assets under management grew 3.7 percent to $6.1 billion for 2016. Total wealth management revenue grew 6.1 percent to $37.6 million, marking an all-time record.

Total 2016 deposits grew 6.69 percent to $3.06 billion.

The bank’s net interest margin for 2016 was 3.02 percent, compared with 3.12 percent in 2015. It’s return on average assets fell to 1.16 percent from 1.19 percent the previous year.

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