Contact: Elizabeth B. Eckel
Senior Vice President, Marketing
Telephone: (401) 348-1309
FOR IMMEDIATE RELEASE
Washington Trust Reports Record First Quarter 2018 Earnings
WESTERLY, R.I., April 20, 2018 (GLOBE NEWSWIRE)…Washington Trust Bancorp, Inc. (Nasdaq:WASH), parent company of The Washington Trust Company, today announced first quarter 2018 net income of $16.2 million, or $0.93 per diluted share, compared to net income of $8.0 million, or $0.46 per diluted share, reported for the fourth quarter of 2017.
The Tax Cuts and Jobs Act ("the Tax Act") was enacted in December 2017 and permanently lowered the corporate tax rate from 35% to 21% effective January 1, 2018. As previously reported, the enactment of the Tax Act in 2017 required companies to revalue and reassess deferred tax assets and liabilities reflecting the new federal income tax rate. As a result, in December 2017, Washington Trust's net deferred tax assets were written down by a non-cash charge of $6.2 million, with a corresponding increase to income tax expense. This write-down adjustment reduced fourth quarter 2017 earnings per diluted share by $0.36. Net income for the first quarter of 2018 benefited from the lower corporate tax rate.
“Washington Trust started the year on a positive note, reporting record quarterly earnings and earnings per share, for the first quarter of 2018,” stated Edward O. Handy, III, Chairman and Chief Executive Officer. “Our continued profitability, very good asset quality, and strong capital position provide a solid foundation for future growth.”
Selected highlights for first quarter 2018 include:
Returns on average equity and average assets were 15.96% and 1.45%, respectively.
Net interest income amounted to an all-time quarterly high of $31.9 million.
Consistent with improvement in asset quality metrics and changes in the loan portfolio and loss exposure, no loan loss provision was necessary in the quarter.
In March, Washington Trust declared a quarterly dividend of 43 cents per share, representing a 4 cent per share, or 10%, increase over the preceding quarter.
Net Interest Income
Net interest income was $31.9 million for the first quarter of 2018, up by $963 thousand, or 3%, from the fourth quarter of 2017. Included in net interest income in the first quarter of 2018 was loan prepayment fee income of $46 thousand, compared to $174 thousand in the fourth quarter of 2017. The net interest margin was 3.03% for the first quarter, up by 8 basis points from the preceding quarter.
The following information was filed by Washington Trust Bancorp Inc (WASH) on Friday, April 20, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.