WashTrust sets quarterly profit record in third quarter, again

WASHINGTON TRUST BANCORP posted record quarterly earnings in the three months ended Sept. 30 of $10.5 million, an increase of 5.8 percent on the same year-earlier period, even as total interest and non-interest income fell 7.1 percent to $43.5 million.
WASHINGTON TRUST BANCORP posted record quarterly earnings in the three months ended Sept. 30 of $10.5 million, an increase of 5.8 percent on the same year-earlier period, even as total interest and non-interest income fell 7.1 percent to $43.5 million.

WESTERLY – For the second year in a row, Washington Trust Bancorp Inc. set a quarterly profit record in the third quarter, as Rhode Island’s largest community bank posted earnings of $10.5 million, a 5.8 percent increase on the same period last year.
The parent of The Washington Trust Co. saw total interest and non-interest revenue fall 7.1 percent to $43.5 million, as the effect of selling its merchant (credit card) processing business that boosted the top line in the 2013 third quarter made the comparison seem less favorable. Earnings per diluted share totaled 62 cents for the period ended Sept. 30, an increase from 59 cents a year earlier.
In addition to noting that quarterly earnings came in at a record level, Washington Trust Chairman and CEO Joseph J. MarcAurele said “these results are truly a company-wide effort, as we had good growth along key business lines.” In fact, operations were so good that the bank declared a 32 cent per share dividend, a 3 cent increase over the second-quarter dividend and 6 cents more than the 2013 third quarter.
Total assets for the bank on Sept. 30 were $3.4 billion, a gain of 9.1 percent from a year earlier, driven by increases of 7.1 percent and 29.2 percent, respectively, in total commercial loans and total residential real estate loans, which itself saw a $200 million increase in residential mortgages year over year.
Wealth management revenue, another bright spot for the bank, increased 9.8 percent year over year to $8.4 million, as assets under administration grew 8.4 percent year over year to just under $5 billion. The bank had broken through the $5 billion barrier in the second quarter for the first time.
While some of the standard performance metrics declined compared with a year earlier, with return on average assets falling to 1.25 percent from 1.29 percent, return on average equity dropping to 12.15 percent from 12.82 percent, and average net interest margin for the quarter falling to 3.21 percent from 3.29 percent, the quality of the bank’s assets showed marked improvement.
Total nonperforming assets fell 12.5 percent to $18 million, bringing with it an allowance for loan losses to total loans ratio of 1.04 percent from 1.19 percent a year earlier. Total past-due loans stood at $19.9 million on Sept. 30, a decline of 16.9 percent year over year.

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