Item 5. Market for Registrant’s Common Equity
ITEM 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
The Bancorp’s common stock trades on the NASDAQ Stock Market under the symbol WASH. At January 31, 2021, there were 1,526 holders of record of the Bancorp’s common stock.
The Bancorp (including the Bank prior to 1984) has recorded consecutive quarterly dividends for over 100 years. Since the Bancorp’s primary source of funds for dividends paid to shareholders is the receipt of dividends from the Bank, future dividends will depend on the earnings of the Bank, its financial condition, its need for funds, applicable government policies and regulations, and other such matters the Board of Directors deems appropriate. Management believes that the Bank will continue to generate adequate earnings to continue to pay dividends on a quarterly basis.
See additional disclosures on Equity Compensation Plan Information in Part III, Item 12 “Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.” The Bancorp did not repurchase any shares during the fourth quarter of December 31, 2020.
Stock Performance Graph
Set forth below is a line graph comparing the cumulative total shareholder return on the Corporation’s common stock against the cumulative total return of the NASDAQ Bank Stocks index and the NASDAQ Stock Market (U.S.) from December 31, 2015 to December 31, 2020. The results presented assume that the value of the Corporation’s common stock and each index was $100.00 on December 31, 2015. The total return assumes reinvestment of dividends.
The stock price performance shown on the stock performance graph and associated table below is not necessarily indicative of future price performance. Information used in the graph and table was obtained from a third party provider, a source believed to be reliable, but the Corporation is not responsible for any errors or omissions in such information.
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For the period ending December 31, 2015 2016 2017 2018 2019 2020
Washington Trust Bancorp, Inc. $100.00 $146.88 $143.62 $132.49 $155.96 $137.56
NASDAQ Bank Stocks $100.00 $137.97 $145.50 $121.96 $151.69 $140.31
NASDAQ Stock Market (U.S.) $100.00 $108.97 $141.36 $137.39 $187.87 $272.51
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ITEM 6. Selected Financial Data.
The selected consolidated financial data set forth below does not purport to be complete and should be read in conjunction with, and is qualified in its entirety by, the more detailed information including the Consolidated Financial Statements and related Notes, and the section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” appearing elsewhere in this Annual Report on Form 10-K.
Selected Financial Data (Dollars in thousands, except per share amounts)
At or for the years ended December 31, 2020 2019 2018 2017 2016
Financial Results:
Interest and dividend income $169,936 $197,663 $176,407 $149,586 $133,470
Interest expense 42,492 64,249 44,117 30,055 22,992
Net interest income 127,444 133,414 132,290 119,531 110,478
Provision for credit losses (1)
12,342 1,575 1,550 2,600 5,650
Net interest income after provision for credit losses 115,102 131,839 130,740 116,931 104,828
Noninterest income 99,442 67,080 62,114 64,809 65,129
Noninterest expense 125,384 110,740 106,162 104,100 101,103
Income before income taxes 89,160 88,179 86,692 77,640 68,854
Income tax expense 19,331 19,061 18,260 31,715 22,373
Net income $69,829 $69,118 $68,432 $45,925 $46,481
Net income available to common shareholders $69,678 $68,979 $68,288 $45,817 $46,384
Per Share Information ($):
Earnings per common share:
Basic 4.03 3.98 3.95 2.66 2.72
Diluted 4.00 3.96 3.93 2.64 2.70
Cash dividends declared (2)
2.05 2.00 1.76 1.54 1.46
Book value 30.94 29.00 25.90 23.99 22.76
Market value - closing stock price 44.80 53.79 47.53 53.25 56.05
Performance Ratios (%):
Return on average assets 1.22 1.34 1.46 1.04 1.16
Return on average equity (3)
13.51 14.34 16.20 11.23 11.94
Net interest margin (4)
2.40 2.77 3.01 2.93 3.02
Equity to assets 9.35 9.51 8.94 9.12 8.92
Dividend payout ratio (5)
51.25 50.51 44.78 58.33 54.07
Asset Quality Ratios (%):
Total past due loans to total loans 0.30 0.40 0.37 0.59 0.76
Nonaccrual loans to total loans 0.31 0.45 0.32 0.45 0.68
Nonperforming assets to total assets 0.23 0.35 0.28 0.34 0.53
Allowance for credit losses on loans to nonaccrual loans (1)
334.21 155.18 231.25 174.14 117.89
Allowance for credit losses on loans to total loans (1)
1.05 0.69 0.74 0.79 0.80
Net charge-offs to average loans 0.03 0.04 0.03 0.06 0.21
Capital Ratios (%):
Total risk-based capital ratio 13.51 12.94 12.56 12.45 12.26
Tier 1 risk-based capital ratio 12.61 12.23 11.81 11.65 11.44
Common equity Tier 1 capital ratio 12.06 11.65 11.20 10.99 10.75
Tier 1 leverage capital ratio 8.95 9.04 8.89 8.79 8.67
(1) Based on the current expected credit losses (“CECL”) accounting methodology in 2020 and the incurred loss methodology in prior years.
(2) Represents historical per share dividends declared by the Bancorp.
(3) Net income available to common shareholders divided by average equity.
(4) Fully taxable equivalent net interest income as a percentage of average-earning assets.
(5) Represents the ratio of historical per share dividends declared by the Bancorp to diluted earnings per share.
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Selected Financial Data (Dollars in thousands)
December 31, 2020 2019 2018 2017 2016
Assets:
Cash and cash equivalents $202,268 $138,455 $93,475 $82,923 $107,797
Mortgage loans held for sale 61,614 27,833 20,996 26,943 29,434
Total securities 894,571 899,490 938,225 793,495 755,545
Federal Home Loan Bank stock, at cost 30,285 50,853 46,068 40,517 43,129
Loans:
Total loans 4,195,990 3,892,999 3,680,360 3,374,071 3,234,371
Less: allowance for credit losses on loans (1)
44,106 27,014 27,072 26,488 26,004
Net loans 4,151,884 3,865,985 3,653,288 3,347,583 3,208,367
Investment in bank-owned life insurance 84,193 82,490 80,463 73,267 71,105
Goodwill and identifiable intangible assets 70,214 71,127 72,071 73,049 74,234
Other assets 218,140 156,426 106,180 92,073 91,504
Total assets $5,713,169 $5,292,659 $5,010,766 $4,529,850 $4,381,115
Liabilities:
Deposits:
Noninterest-bearing deposits $832,287 $609,924 $603,216 $578,410 $521,165
Interest-bearing deposits 3,546,066 2,888,958 2,920,832 2,664,297 2,542,587
Total deposits 4,378,353 3,498,882 3,524,048 3,242,707 3,063,752
FHLB advances 593,859 1,141,464 950,722 791,356 848,930
Junior subordinated debentures 22,681 22,681 22,681 22,681 22,681
Other liabilities 184,081 126,140 65,131 59,822 54,948
Total shareholders’ equity 534,195 503,492 448,184 413,284 390,804
Total liabilities and shareholders’ equity $5,713,169 $5,292,659 $5,010,766 $4,529,850 $4,381,115
Asset Quality:
Nonaccrual loans $13,197 $17,408 $11,707 $15,211 $22,058
Property acquired through foreclosure or repossession — 1,109 2,142 131 1,075
Total nonperforming assets $13,197 $18,517 $13,849 $15,342 $23,133
Wealth Management Assets:
Market value of assets under administration $6,866,737 $6,235,801 $5,910,814 $6,714,637 $6,063,293
(1) Based on the CECL accounting methodology in 2020 and the incurred loss methodology in prior years.
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Management's Discussion and Analysis