By William Hamilton
PBN Staff Writer
WESTERLY – Washington Trust Bancorp Inc. (Nasdaq: WASH), parent of The Washington Trust Co., today posted a first-quarter profit of $5.82 million, a decline of $159,000, or 2.7 percent, from the year-ago period’s $5.98 million. Earnings per diluted share declined to 43 cents, 1 cent less than in the 2007 first quarter.
The bank recorded $45.97 million in revenue for the first quarter, up 3.9 percent from $44.55 million in the same quarter last year.
The bank’s net interest margin narrowed to 2.59 percent in the first quarter from 2.65 percent in the 2007 fourth quarter and 2.81 percent a year ago.
Washington Trust’s first-quarter loan-loss provision – funds set aside for anticipated bad loans – was $450,000. That represented a decline of 55 percent from the preceding quarter’s $1 million set-aside, but an increase of 50 percent from the first quarter of 2007, which the bank attributed to growth in its loan portfolio.
At the same time, nonperforming assets increased to $5.7 million, or 0.22 percent of total assets, in the quarter, compared with $4.3 million, or 0.17 percent of total assets, in the 2007 fourth quarter. In addition, net charge-offs for the first quarter were $3,000, compared with net recoveries of $166,000 for the same 2007 period.
Despite relatively flat earnings, the bank’s top executive he said he was pleased with the performance.
“Washington Trust had a good quarter, particularly in light of the challenges facing the financial services industry,” said John C. Warren, Washington Trust’s chairman and CEO. “We had very strong commercial loan growth. … We continue to maintain good asset quality and will retain that focus in this economic environment.”
Washington Trust noted that commercial loans grew by $46 million in the first quarter to $726.32 million, in the sixth consecutive quarter of growth. Commercial loans have increased $127.1, of 21 percent, from the year-ago numbers.
Revenue from its wealth-management services increased 6 percent from the first quarter 2007 to $7.26 million. Assets under management rose 4 percent year-over-year, but fell 3 percent compared with Dec. 31, in part because of first-quarter declines in the financial markets.
The bank’s returns on average equity and average assets for the first quarter were 12.22 percent and 0.90 percent, respectively, compared with 13.66 percent and 1.00 percent, respectively, for the same period in 2007.
Washington Trust Bancorp Inc. (Nasdaq: WASH) is the parent of The Washington Trust Co., a Rhode Island-chartered bank founded in 1800 that has offices in Rhode Island, Massachusetts and southeastern Connecticut. Additional information is available at www.washtrust.com.
