Washington Trust Reports Second Quarter 2020 Earnings
July 20, 2020
WESTERLY, R.I., July 20, 2020 (PR NEWSWIRE)…Washington Trust Bancorp, Inc. (Nasdaq:WASH), parent company of The Washington Trust Company, today announced second quarter 2020 net income of $21.0 million, or $1.21 per diluted share, compared to net income of $11.9 million, or $0.68 per diluted share, reported for the first quarter of 2020.
“Washington Trust reported strong second quarter earnings, a testament to our success at executing a business continuity plan that allowed our employees to safely provide banking services and maintain a high level of personal customer service during the COVID-19 pandemic,” stated Edward O. Handy III, Washington Trust Chairman and Chief Executive Officer. “We assisted thousands of borrowers, depositors and wealth clients with their financial needs during these uncertain times and our second quarter performance demonstrated how our diversified business model enables us to generate earnings in a challenging environment. While there is still uncertainty regarding the severity and duration of the COVID-19 pandemic and its related economic effects, we believe that Washington Trust is well-positioned with strong capital and ample sources of liquidity to handle these challenges as we move forward during this unprecedented time.”
As the nation’s oldest community bank, Washington Trust remains steadfast in its commitment to our employees, customers and communities. The COVID-19 pandemic has caused an unprecedented disruption to the economy and the communities we serve. Washington Trust has responded by working with our valued customers to assist them in these difficult times by providing loan payment deferrals, participating in the Small Business Administration's ("SBA's") Paycheck Protection Program ("PPP") and providing other accommodations. Remote working arrangements continue for a significant portion of our workforce. In July, we reopened our branch lobbies to customer foot traffic while adhering to and promoting social distancing guidelines.
Selected financial highlights for the second quarter of 2020 include:
- Returns on average equity and average assets for the second quarter were 16.51% and 1.46%, respectively, compared to 9.49% and 0.89%, respectively, in the preceding quarter.
- The provision for credit losses was $2.2 million in the second quarter, compared to $7.0 million in the preceding quarter.
- Mortgage banking revenues hit an all-time quarterly high, totaling $14.9 million for the second quarter, up by $8.8 million, or 144%, from the preceding quarter.
- Residential mortgage loan originations for portfolio or sale amounted to a quarterly record of $426 million in the second quarter of 2020, up by $134 million, or 46%, from the preceding quarter.
- Total loans amounted to $4.3 billion at June 30, 2020, up by $197 million, or 5%, from the end of the preceding quarter. Total loans were up by $557 million, or 15%, from a year ago.
- Total in-market deposits (total deposits less out-of-market wholesale brokered deposits) amounted to $3.6 billion, up by $299 million, or 9%, from the end of the preceding quarter, and up by $551 million, or 18%, from a year ago.
For more investor information, please visit https://ir.washtrust.com.