Washington Trust Reports First Quarter 2020 Earnings
April 27, 2020
WESTERLY, R.I., April 27, 2020 (PR NEWSWIRE)…Washington Trust Bancorp, Inc. (Nasdaq:WASH), parent company of The Washington Trust Company, today announced first quarter 2020 net income of $11.9 million, or $0.68 per diluted share, compared to net income of $15.5 million, or $0.89 per diluted share, reported for the fourth quarter of 2019. Our results in the first quarter of 2020 reflect the adoption of the Current Expected Credit Losses ("CECL") accounting methodology, as well as the impact of the COVID-19 pandemic.
“Washington Trust reported good balance sheet growth during the quarter, while overall earnings were impacted by several extraordinary factors, including continued Federal Reserve interest rate cuts, the implementation of CECL, and the COVID-19 pandemic,” stated Edward O. Handy III, Washington Trust Chairman and Chief Executive Officer. “We believe our strong financial foundation, solid capital position, disciplined credit culture, and diversified business model will help us navigate through the challenging times ahead.”
As the nation’s oldest community bank, Washington Trust has managed through numerous economic cycles of varying intensity and has always been there for our employees, customers and communities during difficult financial times. The COVID-19 pandemic has caused an unprecedented disruption to the economy and the communities we serve. In response, we are committed to working with and supporting our customers experiencing financial difficulty due to the COVID-19 pandemic, including loan payment deferrals and participation in the Small Business Administration's Paycheck Protection Program. In addition, we implemented our business continuity plans, which include remote working arrangements for the majority of our workforce, closing our branches and offering drive-through banking or special banking services by appointment only, and promoting social distancing.
Selected financial highlights for the first quarter of 2020 include:
- Returns on average equity and average assets for the first quarter were 9.49% and 0.89%, respectively.
- Total revenues (net interest income plus noninterest income) amounted to $52.5 million for the first quarter, up by $3.9 million, or 8%, from the preceding quarter.
- Residential mortgage loans originated for portfolio or sale amounted to $292 million in the first quarter of 2020, up by $11 million from the preceding quarter and up by $154 million from the first quarter of 2019.
- Total loans amounted to $4.1 billion at March 31, 2020, up by $197 million, or 5%, from the end of the preceding quarter. Total loans were up by $352 million, or 9%, from a year ago.
- Total in-market deposits (total deposits less out-of-market wholesale brokered deposits) amounted to $3.3 billion, up by $60 million, or 2%, from December 31, 2019 and up by $254 million, or 8%, from a year ago.
In March, Washington Trust declared a quarterly dividend of 51 cents per share.
For more investor information, please visit https://ir.washtrust.com.