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Section 1: 8-K (8-K)

Document
false0000737468 0000737468 2020-04-27 2020-04-27


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 27, 2020
WASHINGTON TRUST BANCORP, INC.
(Exact Name of Registrant as Specified in Charter)
Rhode Island
 
001-32991
 
05-0404671
(State or other jurisdiction of incorporation)
 
(Commission File Number)
 
(IRS Employer Identification No.)
 
 
 
 
 

23 Broad Street
 
 
Westerly,
Rhode Island
 
02891
(Address of principal executive offices)
 
(Zip Code)

(401)
348-1200
(Registrant's telephone number, including area code)

N/A
(Former name or address, if changed from last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition
period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the
Exchange Act.






Item 2.02 Results of Operations and Financial Condition.

On April 27, 2020, Washington Trust Bancorp, Inc. issued a press release in which it disclosed unaudited financial information related to first quarter 2020 consolidated earnings. A copy of the press release relating to such announcement, dated April 27, 2020, is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Pursuant to General Instructions B.2 of Form 8-K, this information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.

 
(d)
Exhibits.
 
 
 
 
 
 
 
 
 
Exhibit No.
 
Exhibit
 
 
 
 
 
 
 
 
Press release dated April 27, 2020*
 
 
104
 
Cover Page Interactive Data File (embedded within the Inline XBRL document)
 
 
 
 
 
 
 
*Filed herewith
 
 





SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.



 
 
 
WASHINGTON TRUST BANCORP, INC.
Date:
April 27, 2020
 
By:
/s/ Ronald S. Ohsberg
 
 
 
 
Ronald S. Ohsberg
 
 
 
 
Senior Executive Vice President, Chief Financial Officer and Treasurer



(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit
Exhibit 99.1

403741868_bancorpflatbluehorizontala15.jpg
NASDAQ: WASH
Contact: Elizabeth B. Eckel
Senior Vice President, Marketing
Telephone: (401) 348-1309
E-mail: [email protected]
Date: April 27, 2020
FOR IMMEDIATE RELEASE

Washington Trust Reports First Quarter 2020 Earnings
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.

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Washington Trust
April 27, 2020


Net Interest Income
Net interest income was $32.6 million for the first quarter of 2020, up by $608 thousand, or 2%, from the fourth quarter of 2019. The net interest margin was 2.61% for the first quarter, unchanged from the preceding quarter.

Significant linked quarter changes included:
Average interest-earning assets increased by $164 million, with increases of $137 million in average loans and $31 million in average investment securities. The yield on interest-earning assets for the first quarter was 3.76%, down by 10 basis points from the preceding quarter, reflecting the impact of lower market interest rates.
Average interest-bearing liabilities increased by $167 million, with increases of $49 million in average in-market deposits and $117 million in average wholesale funding balances (wholesale brokered time deposits and Federal Home Loan Bank advances). The cost of interest-bearing liabilities for the first quarter of 2020 was 1.41%, down by 12 basis points from the preceding quarter, also due to lower market interest rates.

Noninterest Income
Noninterest income totaled $19.9 million for the first quarter of 2020, up by $3.3 million, or 20%, from the fourth quarter of 2019. Significant linked quarter changes included:
Wealth management revenues amounted to $8.7 million for the first quarter of 2020, down by $205 thousand, or 2%, on a linked quarter basis. Asset-based revenues decreased by $376 thousand, or 4%, from the preceding quarter. This decrease was partially offset by an increase of $171 thousand in transaction-based revenues on linked quarter basis, largely due to tax reporting and preparation fees, which are generally concentrated in the first half of the year.
Wealth management assets under administration amounted to $5.3 billion at March 31, 2020, down by $898 million, or 14%, from December 31, 2019. Of this decrease, $773 million was related to the decline in financial markets in March. The average balance of assets under administration for the first quarter of 2020 decreased by approximately $239 million, or 4%, from the average balance for the preceding quarter.
Mortgage banking revenues totaled $6.1 million for the first quarter of 2020, up by $2.4 million, or 66%, from the fourth quarter of 2019. The linked quarter change reflected an increase in the mortgage pipeline and a corresponding increase in the fair value of mortgage loan commitments and loans held for sale as of March 31, 2020. The increase was partially offset by a lower sales volume and sales yield on loans sold to the secondary market. Mortgage loans sold to the secondary market totaled $162 million in the first quarter of 2020, down by $15 million from the preceding quarter.
Mortgage banking revenues for the first quarter of 2020 increased by $3.5 million, or 130%, compared to the first quarter of 2019. This reflected increases in both the sale volume and sales yield on loans sold to the secondary market, as well as an increase in the fair value of mortgage loan commitments and loans held for sale. Mortgage loans sold to the secondary market were up by $70 million from the first quarter of 2019.
Loan related derivative income was $2.5 million for the first quarter of 2020, up by $1.3 million, or 120%, reflecting higher gains on commercial borrower interest rate swap transactions.

Noninterest Expenses
Noninterest expenses totaled $30.5 million for the first quarter of 2020, up by $1.7 million, or 6%, from the fourth quarter of 2019.

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Washington Trust
April 27, 2020


The linked quarter comparison of noninterest expenses was impacted by the following:
In the first quarter of 2020, we established a contingency reserve of approximately $800 thousand largely due to a potential loss associated with counterfeit checks drawn on a commercial customer's account, which arose at the end of March and remains under investigation. This was included in other noninterest expenses.
In the fourth quarter of 2019, a write-down adjustment on one other real estate owned ("OREO") property of $1.0 million was recognized and classified in other expenses.
In the fourth quarter of 2019, FDIC assessment credits of $235 thousand were recognized. The credits were fully utilized in 2019, therefore no such credits were recognized in the first quarter of 2020.

Excluding the impact of the aforementioned items, noninterest expenses for the first quarter of 2020 increased by $1.7 million, or 6%, on a linked quarter basis, reflecting increases in salaries and employee benefits expense and outsourced services expense. Salaries and employee benefits expense was up by $1.1 million, reflecting payroll tax resets associated with the start of the new calendar year and merit increases. Outsourced services expense was up by $248 thousand from the preceding quarter, reflecting volume-related increases in third party processing costs largely related to customer loan related derivative transactions.

Income tax expense totaled $3.1 million for the first quarter of 2020, down by $1.2 million from the preceding quarter. The effective tax rate for the first quarter of 2020 was 20.9%, compared to 21.8% for the preceding quarter. Based on current federal and applicable state income tax statutes, the Corporation currently expects its full-year 2020 effective tax rate to be approximately 20.5%.

Investment Securities
The securities portfolio totaled $917 million at March 31, 2020, up by $18 million, or 2%, from December 31, 2019, reflecting purchases of U.S. government agency and U.S. government-sponsored debt securities, including mortgage-backed securities, as well as an increase in the fair value of available for sale securities. These increases were partially offset by routine pay-downs on mortgage-backed securities and calls of debt securities. First quarter 2020 purchases totaled $116 million, with a weighted average yield of 2.35%. Securities represented 16% of total assets March 31, 2020 and 17% at December 31, 2019.

Loans
Total loans stood at $4.1 billion at March 31, 2020, up by $197 million, or 5% from the end of the preceding quarter. Linked quarter changes included:
Commercial loans increased by $140 million, or 7%, from December 31, 2019, with net increases of $70 million in both the commercial real estate portfolio and the commercial and industrial portfolio. In the first quarter of 2020, commercial loan originations and construction advances totaled approximately $169 million, and C&I line utilization increased by approximately $25 million. These increases were partially offset by payoffs and paydowns.
Residential real estate loans increased by $61 million, or 4%, from December 31, 2019 and included purchases of $51 million of residential mortgage loans with a weighted average rate of 3.38%. The purchased loans were individually evaluated to our underwriting standards and are predominantly secured by properties in Massachusetts.
The consumer loan portfolio decreased by $4 million from the balance at December 31, 2019.

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Washington Trust
April 27, 2020



Deposits and Borrowings
Total deposits amounted to $3.7 billion at March 31, 2020, up by $207 million, or 6%, from the end of the preceding quarter. Included in total deposits are out-of-market wholesale brokered time deposits, which increased by $147 million from December 31, 2019. Excluding wholesale brokered time deposits, in-market deposits at March 31, 2020 were up by $60 million, or 2%, from the end of the preceding quarter, reflecting modest growth across substantially all deposit categories.

Federal Home Loan Bank advances totaled $1.2 billion at March 31, 2020, up by $57 million from December 31, 2019.

Asset Quality
Nonperforming assets amounted to $17.9 million at March 31, 2020, down by $571 thousand from the end of the preceding quarter. This decline reflected a $1.1 million decrease in OREO, partially offset by a $510 thousand increase in nonaccrual loans. The decrease in OREO resulted from the first quarter sale of a commercial property essentially at its carrying value.

Asset quality metrics remained at stable levels in the first quarter of 2020. Total nonaccrual loans amounted to $17.9 million, or 0.44% of total loans, at March 31, 2020, compared to $17.4 million, or 0.45% of total loans, at December 31, 2019. Total past due loans amounted to $16.5 million, or 0.40% of total loans, at March 31, 2020, compared to $15.7 million, or 0.40% of total loans, at December 31, 2019. Given the uncertain impact to the economy of the COVID-19 pandemic, Washington Trust continues to actively monitor asset quality as the potential exists for adverse events to impact asset quality trends.

Effective January 1, 2020, Washington Trust adopted Accounting Standards Update No. 2016-13, often referred to as CECL, which requires the measurement of expected lifetime credit losses for financial assets measured at amortized cost, as well as unfunded commitments that are considered off-balance sheet credit exposures. CECL requires that the allowance for credit losses ("ACL") be calculated based on current expected credit losses over the full remaining expected life of the financial assets and also consider expected future changes in macroeconomic conditions. Upon adoption of CECL, Washington Trust's ACL on loans (a contra-asset) increased by $6.5 million, or 24%, and the ACL on unfunded commitments (a liability) increased by $1.5 million, or 506%, as compared to December 31, 2019. This increase in the ACL on loans and unfunded commitments upon the adoption of CECL resulted in a $6.1 million decrease to retained earnings, net of deferred tax balances of $1.9 million.

In the first quarter of 2020, a provision for credit losses of $7.0 million was charged to earnings and was mainly attributable to the significant deterioration in the economic forecast due to the COVID-19 pandemic. Continued uncertainty regarding the severity and duration of the pandemic and related economic effects will continue to affect the accounting for credit losses under CECL. Under the previous incurred loss accounting methodology, no provision was recognized in the fourth quarter of 2019.

In the first quarter of 2020, net charge-offs of $623 thousand were recognized, compared to net recoveries of $17 thousand in the preceding quarter.

The ACL on loans amounted to $39.7 million, or 0.97% of total loans, at March 31, 2020, compared to $27.0 million, or 0.69% of total loans, at December 31, 2019. The ACL on unfunded commitments, included in other liabilities on the Consolidated Balance Sheets, amounted to $2.0 million at March 31, 2020, compared to $293 thousand at December 31, 2019.

-4-

Washington Trust
April 27, 2020



Capital and Dividends
Total shareholders' equity was $508.6 million at March 31, 2020, up by $5.1 million from December 31, 2019. This included net income of $11.9 million and an increase of $12.2 million in the accumulated other comprehensive income component of shareholders' equity, largely reflecting the change in fair value of available for sale debt securities. These increases were partially offset by $8.9 million in dividend declarations, the $6.1 million decrease to retained earnings due to the adoption of CECL and a net increase in treasury stock of $3.8 million.

In the first quarter of 2020, Washington Trust repurchased 124,863 shares, totaling $4.3 million, at an average price of $34.61 under its previously announced 2019 Stock Repurchase Program. Due to the economic uncertainty resulting from COVID-19, Washington Trust suspended its 2019 Stock Repurchase Program effective March 25, 2020.

Capital levels at March 31, 2020 exceeded the regulatory minimum levels to be considered well capitalized, with a total risk-based capital ratio of 12.42% at March 31, 2020, compared to 12.94% at December 31, 2019. Washington Trust has elected the CECL phase-in option provided by regulatory guidance, which delays the estimated impact of CECL on regulatory capital and phases it in over a three year period beginning in 2022.

Book value per share amounted to $29.48 at March 31, 2020, compared to $29.00 at December 31, 2019.

The Board of Directors declared a quarterly dividend of 51 cents per share for the quarter ended March 31, 2020. The dividend was paid on April 9, 2020 to shareholders of record on April 1, 2020.

Conference Call
Washington Trust will host a conference call to discuss its first quarter results, business highlights and outlook on Monday, April 27, 2020 at 11:30 a.m. (Eastern Time). Individuals may dial in to the call at 1-888-317-6016. An audio replay of the call will be available, shortly after the conclusion of the call, by dialing 1-877-344-7529 and entering the Replay PIN Number 10142316; the audio replay will be available through May 11, 2020. Also, a webcast of the call will be posted in the Investor Relations section of Washington Trust's web site, http://ir.washtrust.com, and will be available through June 30, 2020.


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Washington Trust
April 27, 2020


Background
Washington Trust Bancorp, Inc. is the parent of The Washington Trust Company. Founded in 1800, Washington Trust is the oldest community bank in the nation, the largest state-chartered bank headquartered in Rhode Island and one of the Northeast's premier financial services companies. Washington Trust offers a full range of financial services, including commercial banking, mortgage banking, personal banking and wealth management and trust services through its offices located in Rhode Island, Connecticut and Massachusetts. The Corporation’s common stock trades on NASDAQ under the symbol WASH. Investor information is available on the Corporation’s web site at http://ir.washtrust.com.

Forward-Looking Statements
This press release contains statements that are “forward-looking statements”. We may also make forward-looking statements in other documents we file with the SEC, in our annual reports to shareholders, in press releases and other written materials, and in oral statements made by our officers, directors or employees. You can identify forward-looking statements by the use of the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “assume,” “outlook,” “will,” “should,” and other expressions that predict or indicate future events and trends and which do not relate to historical matters. You should not rely on forward-looking statements, because they involve known and unknown risks, uncertainties and other factors, some of which are beyond our control. These risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from the anticipated future results, performance or achievements expressed or implied by the forward-looking statements.

Some of the factors that might cause these differences include the following: the negative impacts and disruptions of the COVID-19 pandemic and measures taken to contain its spread on our employees, customers, business operations, credit quality, financial position, liquidity and results of operations; the length and extent of the economic contraction as a result of the COVID-19 pandemic; continued deterioration in local, regional, national or international economic conditions or conditions affecting the banking or financial services industries, financial capital markets and the customers and communities we serve; changes in consumer behavior due to changing business and economic conditions or legislative or regulatory initiatives; continued volatility in national and international financial markets; reductions in net interest income resulting from interest rate volatility as well as changes in the balance and mix of loans and deposits; reductions in the market value or outflows of wealth management assets under administration; decreases in the value of securities and other assets; reductions in loan demand; changes in loan collectibility, increases in defaults and charge-off rates; changes in the size and nature of our competition; changes in legislation or regulation and accounting principles, policies and guidelines; operational risks including, but not limited to, cybersecurity breaches, fraud, natural disasters and future pandemics; reputational risk relating to our participation in the Paycheck Protection Program and other pandemic-related legislative and regulatory initiatives and programs; and changes in the assumptions used in making such forward-looking statements. In addition, the factors described under “Risk Factors” in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2019, as updated by our Quarterly Reports on Form 10-Q and other filings submitted to the SEC, may result in these differences. You should carefully review all of these factors and you should be aware that there may be other factors that could cause these differences. These forward-looking statements were based on information, plans and estimates at the date of this report, and we assume no obligation to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes.

Supplemental Information - Explanation of Non-GAAP Financial Measures
In addition to results presented in accordance with generally accepted accounting principles (“GAAP”), this press release contains certain non-GAAP financial measures. Washington Trust's management believes that the supplemental non-GAAP information, which consists of measurements and ratios based on tangible equity and tangible assets, is utilized by regulators and market analysts to evaluate a company's financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.

-6-




Washington Trust Bancorp, Inc. and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited; Dollars in thousands)
 
 
 
 
 
 
 
Mar 31,
2020
Dec 31,
2019
Sep 30,
2019
Jun 30,
2019
Mar 31,
2019
Assets:
 
 
 
 
 
Cash and due from banks

$178,678


$132,193


$141,768


$115,904


$88,242

Short-term investments
6,591

6,262

4,336

3,910

3,317

Mortgage loans held for sale, at fair value
49,751

27,833

44,657

39,996

14,608

Available for sale debt securities, at fair value
917,392

899,490

887,020

969,168

994,881

Federal Home Loan Bank stock, at cost
53,576

50,853

45,030

49,759

48,025

Loans:
 
 
 
 
 
Total loans
4,090,396

3,892,999

3,778,106

3,730,339

3,738,469

Less: allowance for credit losses on loans
39,665

27,014

26,997

27,398

27,644

Net loans
4,050,731

3,865,985

3,751,109

3,702,941

3,710,825

Premises and equipment, net
28,543

28,700

29,293

29,302

29,822

Operating lease right-of-use assets
26,098

26,792

27,500

28,174

28,249

Investment in bank-owned life insurance
83,053

82,490

81,920

81,351

80,786

Goodwill
63,909

63,909

63,909

63,909

63,909

Identifiable intangible assets, net
6,988

7,218

7,448

7,684

7,923

Other assets
155,669

100,934

114,888

97,574

84,142

Total assets

$5,620,979


$5,292,659


$5,198,878


$5,189,672


$5,154,729

Liabilities:
 
 
 
 
 
Deposits:
 
 
 
 
 
Noninterest-bearing deposits

$622,893


$609,924


$619,839


$587,326


$577,319

Interest-bearing deposits
3,083,421

2,888,958

2,966,314

2,917,296

2,926,941

Total deposits
3,706,314

3,498,882

3,586,153

3,504,622

3,504,260

Federal Home Loan Bank advances
1,198,534

1,141,464

956,786

1,060,960

1,056,129

Junior subordinated debentures
22,681

22,681

22,681

22,681

22,681

Operating lease liabilities
28,184

28,861

29,541

30,210

30,187

Other liabilities
156,669

97,279

105,892

86,994

71,629

Total liabilities
5,112,382

4,789,167

4,701,053

4,705,467

4,684,886

Shareholders’ Equity:
 
 
 
 
 
Common stock
1,085

1,085

1,084

1,083

1,082

Paid-in capital
123,167

123,281

121,900

121,115

120,743

Retained earnings
387,243

390,363

383,765

373,873

365,521

Accumulated other comprehensive income (loss)
929

(11,237
)
(8,924
)
(11,866
)
(17,503
)
Treasury stock, at cost
(3,827
)




Total shareholders’ equity
508,597

503,492

497,825

484,205

469,843

Total liabilities and shareholders’ equity

$5,620,979


$5,292,659


$5,198,878


$5,189,672


$5,154,729




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Washington Trust Bancorp, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited; Dollars and shares in thousands, except per share amounts)
 
For the Three Months Ended
 
Mar 31,
2020
Dec 31,
2019
Sep 30,
2019
Jun 30,
2019
Mar 31,
2019
Interest income:
 
 
 
 
 
Interest and fees on loans

$40,008


$40,079


$41,558


$42,138


$41,744

Interest on mortgage loans held for sale
285

359

410

288

180

Taxable interest on debt securities
5,834

5,817

6,318

7,006

7,226

Nontaxable interest on debt securities


1

8

9

Dividends on Federal Home Loan Bank stock
640

693

747

720

695

Other interest income
349

435

493

399

340

Total interest and dividend income
47,116

47,383

49,527

50,559

50,194

Interest expense:


 
 
 
 
Deposits
8,536

9,144

9,792

9,469

8,696

Federal Home Loan Bank advances
5,765

6,015

6,512

6,980

6,661

Junior subordinated debentures
213

230

245

252

253

Total interest expense
14,514

15,389

16,549

16,701

15,610

Net interest income
32,602

31,994

32,978

33,858

34,584

Provision for credit losses
7,036


400

525

650

Net interest income after provision for credit losses
25,566

31,994

32,578

33,333

33,934

Noninterest income:


 






Wealth management revenues
8,689

8,894

9,153

9,549

9,252

Mortgage banking revenues
6,096

3,669

4,840

3,640

2,646

Card interchange fees
947

1,100

1,099

1,018

997

Service charges on deposit accounts
860

941

939

929

875

Loan related derivative income
2,455

1,116

1,407

746

724

Income from bank-owned life insurance
564

570

569

566

649

Net realized losses on securities

27


(80
)

Other income
316

301

335

385

224

Total noninterest income
19,927

16,618

18,342

16,753

15,367

Noninterest expense:


 






Salaries and employee benefits
19,468

18,374

18,332

18,436

17,619

Outsourced services
3,000

2,752

2,722

2,518

2,606

Net occupancy
2,019

1,986

1,933

1,904

1,998

Equipment
977

996

1,046

1,028

1,011

Legal, audit and professional fees
822

692

645

664

534

FDIC deposit insurance costs
422

109

(460
)
540

429

Advertising and promotion
259

402

368

525

239

Amortization of intangibles
230

229

236

239

239

Other expenses
3,256

3,215

2,048

2,297

2,289

Total noninterest expense
30,453

28,755

26,870

28,151

26,964

Income before income taxes
15,040

19,857

24,050

21,935

22,337

Income tax expense
3,139

4,321

5,236

4,662

4,842

Net income

$11,901


$15,536


$18,814


$17,273


$17,495

 
 
 
 
 
 
Net income available to common shareholders

$11,869


$15,502


$18,778


$17,238


$17,461

 
 
 
 
 
 
Weighted average common shares outstanding:
 
 
 
 
 
  Basic
17,345

17,351

17,338

17,330

17,304

  Diluted
17,441

17,436

17,414

17,405

17,401

Earnings per common share:
 
 
 
 
 
  Basic

$0.68


$0.89


$1.08


$0.99


$1.01

  Diluted

$0.68


$0.89


$1.08


$0.99


$1.00

 
 
 
 
 
 
Cash dividends declared per share

$0.51


$0.51


$0.51


$0.51


$0.47


-8-



Washington Trust Bancorp, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited; Dollars and shares in thousands, except per share amounts)
 
 
 
Mar 31,
2020
Dec 31,
2019
Sep 30,
2019
Jun 30,
2019
Mar 31,
2019
Share and Equity Related Data:
 
 
 
 
 
Book value per share

$29.48


$29.00


$28.71


$27.93


$27.15

Tangible book value per share - Non-GAAP (1)

$25.37


$24.90


$24.60


$23.80


$23.00

Market value per share

$36.56


$53.79


$48.31


$52.18


$48.15

Shares issued at end of period
17,363

17,363

17,338

17,336

17,305

Shares outstanding at end of period
17,252

17,363

17,338

17,336

17,305

 
 
 
 
 
 
Capital Ratios (2):
 
 
 
 
 
Tier 1 risk-based capital
11.62
%
12.23
%
12.21
%
12.06
%
11.84
%
Total risk-based capital
12.42
%
12.94
%
12.94
%
12.80
%
12.59
%
Tier 1 leverage ratio
8.77
%
9.04
%
8.97
%
8.76
%
8.69
%
Common equity tier 1
11.08
%
11.65
%
11.62
%
11.46
%
11.25
%
 
 
 
 
 
 
Balance Sheet Ratios:
 
 
 
 
 
Equity to assets
9.05
%
9.51
%
9.58
%
9.33
%
9.11
%
Tangible equity to tangible assets - Non-GAAP (1)
7.89
%
8.28
%
8.32
%
8.06
%
7.83
%
Loans to deposits (3)
110.6
%
111.3
%
105.8
%
106.8
%
106.3
%

 
 
 
For the Three Months Ended
 
Mar 31,
2020
Dec 31,
2019
Sep 30,
2019
Jun 30,
2019
Mar 31,
2019
Performance Ratios (4):
 
 
 
 
 
Net interest margin (5)
2.61
%
2.61
%
2.72
%
2.81
%
2.93
%
Return on average assets (net income divided by average assets)
0.89
%
1.18
%
1.44
%
1.34
%
1.39
%
Return on average tangible assets - Non-GAAP (1)
0.90
%
1.20
%
1.46
%
1.36
%
1.41
%
Return on average equity (net income available for common shareholders divided by average equity)
9.49
%
12.24
%
15.20
%
14.58
%
15.52
%
Return on average tangible equity - Non-GAAP (1)
11.05
%
14.26
%
17.79
%
17.17
%
18.43
%
Efficiency ratio (6)
58.0
%
59.2
%
52.4
%
55.6
%
54.0
%

(1)
See the section labeled “SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures” at the end of this document.
(2)
Estimated for March 31, 2020 and actuals for prior periods.
(3)
Period-end balances of net loans and mortgage loans held for sale as a percentage of total deposits.
(4)
Annualized based on the actual number of days in the period.
(5)
Fully taxable equivalent (FTE) net interest income as a percentage of average-earnings assets.
(6)
Total noninterest expense as percentage of total revenues (net interest income and noninterest income).



-9-



Washington Trust Bancorp, Inc. and Subsidiaries
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited; Dollars in thousands)
 
 
 
For the Three Months Ended
 
Mar 31,
2020
Dec 31,
2019
Sep 30,
2019
Jun 30,
2019
Mar 31,
2019
Wealth Management Results
 
 
 
 
 
Wealth Management Revenues:
 
 
 
 
 
Asset-based revenues

$8,355


$8,731


$9,013


$9,141


$8,921

Transaction-based revenues
334

163

140

408

331

Total wealth management revenues

$8,689


$8,894


$9,153


$9,549


$9,252

 
 
 
 
 
 
Assets Under Administration (AUA):
 
 
 
 
 
Balance at beginning of period

$6,235,801


$6,126,327


$6,478,890


$6,350,128


$5,910,814

Net investment appreciation (depreciation) & income
(772,735
)
310,766

66,514

222,489

520,057

Net client asset flows
(125,333
)
(243,175
)
(419,077
)
(93,727
)
(80,743
)
Other (1)

41,883




Balance at end of period

$5,337,733


$6,235,801


$6,126,327


$6,478,890


$6,350,128

 
 
 
 
 
 
Percentage of AUA that are managed assets
89%
90%
90%
91%
91%
 
 
 
 
 
 
Mortgage Banking Results
 
 
 
 
 
Mortgage Banking Revenues:
 
 
 
 
 
Gains & commissions on loan sales, net (2)

$6,013


$3,583


$4,752


$3,523


$2,474

Loan servicing fee income, net (3)
83

86

88

117

172

Total mortgage banking revenues

$6,096


$3,669


$4,840


$3,640


$2,646

 
 
 
 
 
 
Residential Mortgage Loan Originations:
 
 
 
 
 
Originations for retention in portfolio

$108,498


$120,882


$105,075


$69,736


$51,697

Originations for sale to secondary market (4)
183,222

160,175

189,979

162,123

85,826

Total mortgage loan originations

$291,720


$281,057


$295,054


$231,859


$137,523

 
 
 
 
 
 
Residential Mortgage Loans Sold:
 
 
 
 
 
Sold with servicing rights retained

$44,498


$42,612


$25,766


$18,292


$9,490

Sold with servicing rights released (4)
117,693

134,091

159,210

119,122

82,589

Total mortgage loans sold

$162,191


$176,703


$184,976


$137,414


$92,079


(1)
Represents the classification of certain non-fee generating assets as AUA due to a reporting change in the fourth quarter of 2019.
(2)
Includes gains on loan sales, commission income on loans originated for others, servicing right gains, fair value adjustments on mortgage loans held for sale, and fair value adjustments and gains (losses) on forward loan commitments.
(3)
Represents loan servicing fee income, net of servicing right amortization and valuation adjustments.
(4)
Includes brokered loans (loans originated for others).


-10-



Washington Trust Bancorp, Inc. and Subsidiaries
END OF PERIOD LOAN AND DEPOSIT COMPOSITION
(Unaudited; Dollars in thousands)
 
 
 
Mar 31,
2020
Dec 31,
2019
Sep 30,
2019
Jun 30,
2019
Mar 31,
2019
Loans:
 
 
 
 
 
Commercial real estate (1)

$1,618,020


$1,547,572


$1,517,320


$1,482,836


$1,463,682

Commercial & industrial
655,157

585,289

566,426

583,873

610,608

Total commercial
2,273,177

2,132,861

2,083,746

2,066,709

2,074,290

 
 
 
 
 
 
Residential real estate (2)
1,510,472

1,449,090

1,378,518

1,352,113

1,359,072

 
 
 
 
 
 
Home equity
287,134

290,874

294,250

288,078

279,938

Other
19,613

20,174

21,592

23,439

25,169

Total consumer
306,747

311,048

315,842

311,517

305,107

Total loans

$4,090,396


$3,892,999


$3,778,106


$3,778,106


$3,738,469

(1)
Commercial real estate loans consist of commercial mortgages and construction and development loans. Commercial mortgages are loans secured by income producing property.
(2)
Residential real estate loans consist of mortgage and homeowner construction loans secured by one- to four-family residential properties.

 
March 31, 2020
 
December 31, 2019
 
Balance

% of Total
 
Balance
% of Total
Commercial Real Estate Loans by Property Type:
 
 
 
 
 
Multi-family dwelling

$475,934

29
%
 

$430,502

28
%
Retail
310,652

19

 
314,661

20

Office
293,964

18

 
294,910

19

Hospitality
136,818

8

 
128,867

8

Healthcare
114,597

7

 
110,409

7

Industrial and warehouse
86,418

5

 
82,432

5

Commercial mixed use
74,834

5

 
73,895

5

Other
124,803

9

 
111,896

8

Total commercial real estate loans

$1,618,020

100
%
 

$1,547,572

100
%
 
 
 
 
 
 
Commercial & Industrial Loans by Industry Segmentation:
 
 
 
 
 
Healthcare and social assistance

$137,832

21
%
 

$138,857

24
%
Manufacturing
65,753

10

 
53,561

9

Retail
58,899

9

 
43,386

7

Educational services
56,303

9

 
56,556

10

Owner occupied and other real estate
51,261

8

 
46,033

8

Accommodation and food services
44,244

7

 
16,562

3

Finance and insurance
36,941

6

 
28,501

5

Entertainment and recreation
32,120

5

 
30,807

5

Professional, scientific and technical
30,776

5

 
37,599

6

Information
25,420

4

 
22,162

4

Public administration
23,597

4

 
25,107

4

Transportation and warehousing
23,159

4

 
20,960

4

Other
68,852

8

 
65,198

11

Total commercial & industrial loans

$655,157

100
%
 

$585,289

100
%


-11-



Washington Trust Bancorp, Inc. and Subsidiaries
END OF PERIOD LOAN AND DEPOSIT COMPOSITION
(Unaudited; Dollars in thousands)
 
 
 
 
 
 
 
March 31, 2020
 
December 31, 2019
 
Balance

% of Total
 
Balance
% of Total
Commercial Real Estate Loans by Property Location:
 
 
 
 
 
Rhode Island

$423,884

26
%
 

$394,929

25
%
Connecticut
634,498

39

 
616,484

40

Massachusetts
482,037

30

 
458,029

30

Subtotal
1,540,419

95

 
1,469,442

95

All other states
77,601

5

 
78,130

5

Total commercial real estate loans

$1,618,020

100
%
 

$1,547,572

100
%
 
 
 
 
 
 
Residential Real Estate Loans by Property Location:
 
 
 
 
 
Rhode Island

$355,916

24
%


$356,392

25
%
Connecticut
138,988

9


140,574

10

Massachusetts
995,594

66


932,726

64

Subtotal
1,490,498

99


1,429,692

99

All other states
19,974

1


19,398

1

Total residential real estate loans

$1,510,472

100
%


$1,449,090

100
%

 
Mar 31,
2020
Dec 31,
2019
Sep 30,
2019
Jun 30,
2019
Mar 31,
2019
Deposits:
 
 
 
 
 
Noninterest-bearing demand deposits

$622,893


$609,924


$619,839


$587,326


$577,319

Interest-bearing demand deposits
178,391

159,938

152,200

128,355

162,598

NOW accounts
528,650

520,295

478,462

484,615

471,682

Money market accounts
784,893

765,899

749,122

654,719

644,949

Savings accounts
382,509

373,503

362,868

365,069

371,248

Time deposits (in-market)
776,992

784,481

792,941

801,501

792,470

In-market deposits
3,274,328

3,214,040

3,155,432

3,021,585

3,020,266

Wholesale brokered time deposits
431,986

284,842

430,721

483,037

483,994

Total deposits

$3,706,314


$3,498,882


$3,586,153


$3,504,622


$3,504,260


-12-



Washington Trust Bancorp, Inc. and Subsidiaries
CREDIT & ASSET QUALITY DATA
(Unaudited; Dollars in thousands)
 
 
 
Mar 31,
2020
Dec 31,
2019
Sep 30,
2019
Jun 30,
2019
Mar 31,
2019
Asset Quality Ratios:
 
 
 
 
 
Nonperforming assets to total assets
0.32
%
0.35
%
0.37
%
0.29
%
0.28
%
Nonaccrual loans to total loans
0.44
%
0.45
%
0.39
%
0.34
%
0.33
%
Total past due loans to total loans
0.40
%
0.40
%
0.38
%
0.48
%
0.39
%
Allowance for credit losses on loans to nonaccrual loans
221.37
%
155.18
%
181.16
%
212.93
%
223.57
%
Allowance for credit losses on loans to total loans
0.97
%
0.69
%
0.71
%
0.73
%
0.74
%
 
 
 
 
 
 
Nonperforming Assets:
 
 
 
 
 
Commercial real estate

$450


$603


$684


$926


$926

Commercial & industrial
290

657




Total commercial
740

1,260

684

926

926

Residential real estate
15,423

14,297

12,531

10,610

10,032

Home equity
1,667

1,763

1,599

1,243

1,407

Other consumer
88

88

88

88


Total consumer
1,755

1,851

1,687

1,331

1,407

Total nonaccrual loans
17,918

17,408

14,902

12,867

12,365

Other real estate owned
28

1,109

4,142

2,142

2,142

Total nonperforming assets

$17,946


$18,517


$19,044


$15,009


$14,507

 
 
 
 
 
 
Past Due Loans (30 days or more past due):
 
 
 
 
 
Commercial real estate

$1,275


$1,433


$684


$3,670


$926

Commercial & industrial
310

1

1

1

1

Total commercial
1,585

1,434

685

3,671

927

Residential real estate
12,293

11,429

11,599

11,237

10,849

Home equity
2,482

2,696

1,973

2,904

2,911

Other consumer
115

130

99

102

13

Total consumer
2,597

2,826

2,072

3,006

2,924

Total past due loans

$16,475


$15,689


$14,356


$17,914


$14,700

 
 
 
 
 
 
Accruing loans 90 days or more past due

$—


$—


$—


$—


$—

Nonaccrual loans included in past due loans

$11,385


$11,477


$9,797


$8,581


$8,563


-13-



Washington Trust Bancorp, Inc. and Subsidiaries
CREDIT & ASSET QUALITY DATA
(Unaudited; Dollars in thousands)
 
For the Three Months Ended
 
Mar 31,
2020
Dec 31,
2019
Sep 30,
2019
Jun 30,
2019
Mar 31,
2019
Nonaccrual Loan Activity:
 
 
 
 
 
Balance at beginning of period

$17,408


$14,902


$12,867


$12,365


$11,707

Additions to nonaccrual status
1,729

2,766

5,672

1,620

1,924

Loans returned to accruing status
(393
)

(597
)
(118
)
(855
)
Loans charged-off
(635
)
(132
)
(966
)
(819
)
(103
)
Loans transferred to other real estate owned
(28
)

(2,000
)


Payments, payoffs and other changes
(163
)
(128
)
(74
)
(181
)
(308
)
Balance at end of period

$17,918


$17,408


$14,902


$12,867


$12,365

 
 
 
 
 
 
Allowance for Credit Losses on Loans:
 
 
 
 
 
Balance at beginning of period

$27,014


$26,997


$27,398


$27,644


$27,072

Adoption of CECL accounting standard (Topic 326)
6,501





Provision for credit losses on loans (1)
6,773


400

525

650

Charge-offs
(635
)
(132
)
(966
)
(819
)
(103
)
Recoveries
12

149

165

48

25

Balance at end of period

$39,665


$27,014


$26,997


$27,398


$27,644

 
 
 
 
 
 
Allowance for Credit Losses on Unfunded Commitments:
 
 
 
 
 
Balance at beginning of period

$293


$317


$302


$242


$289

Adoption of CECL accounting standard (Topic 326)
1,483





Provision for credit losses on unfunded commitments (2)
263

(24
)
15

60

(47
)
Balance at end of period (3)

$2,039


$293


$317


$302


$242


(1)
Included in provision for credit losses in the Consolidated Statements of Income.
(2)
Included in provision for credit losses in the Consolidated Statements of Income for the three months ended March 31, 2020. For periods prior to 2020, included in other noninterest expense in the Consolidated Statements of Income.
(3)
Included in other liabilities in the Consolidated Balance Sheets.

 
For the Three Months Ended
 
Mar 31,
2020
Dec 31,
2019
Sep 30,
2019
Jun 30,
2019
Mar 31,
2019
Net Loan Charge-Offs (Recoveries):
 
 
 
 
 
Commercial real estate

$153


($44
)

$947


$—


$—

Commercial & industrial
290

(15
)
(122
)
(16
)
6

Total commercial
443

(59
)
825

(16
)
6

Residential real estate



486


Home equity
172

17

(36
)
289

48

Other consumer
8

25

12

12

24

Total consumer
180

42

(24
)
301

72

Total

$623


($17
)

$801


$771


$78

 
 
 
 
 
 
Net charge-offs to average loans (annualized)
0.06
%
%
0.08
%
0.08
%
0.01
%


-14-



The following table presents average balance and interest rate information. Tax-exempt income is converted to a fully taxable equivalent basis using the statutory federal income tax rate adjusted for applicable state income taxes net of the related federal tax benefit. Unrealized gains (losses) on available for sale securities and fair value adjustments on mortgage loans held for sale are excluded from the average balance and yield calculations. Nonaccrual loans, as well as interest recognized on these loans, are included in amounts presented for loans.
Washington Trust Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCE SHEETS (FTE Basis)
(Unaudited; Dollars in thousands)
For the Three Months Ended
March 31, 2020
 
December 31, 2019
 
Quarter Change
 
Average Balance
Interest
Yield/
Rate
 
Average Balance
Interest
Yield/
Rate
 
Average Balance
Interest
Yield/
Rate
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
Cash, federal funds sold and short-term investments

$113,344


$349

1.24
%
 

$115,458


$435

1.49
%
 

($2,114
)

($86
)
(0.25
)%
Mortgage loans held for sale
31,087

285

3.69

 
38,494

359

3.70

 
(7,407
)
(74
)
(0.01
)
Taxable debt securities
905,293

5,833

2.59

 
874,770

5,817

2.64

 
30,523

16

(0.05
)
FHLB stock
51,962

640

4.95

 
46,501

693

5.91

 
5,461

(53
)
(0.96
)
Commercial real estate
1,582,956

16,097

4.09

 
1,538,627

16,491

4.25

 
44,329

(394
)
(0.16
)
Commercial & industrial
607,499

6,556

4.34

 
576,590

6,572

4.52

 
30,909

(16
)
(0.18
)
Total commercial
2,190,455

22,653

4.16

 
2,115,217

23,063

4.33

 
75,238

(410
)
(0.17
)
Residential real estate
1,469,282

14,283

3.91

 
1,399,144

13,833

3.92

 
70,138

450

(0.01
)
Home equity
285,832

3,101

4.36

 
293,029

3,254

4.41

 
(7,197
)
(153
)
(0.05
)
Other
19,855

249

5.04

 
20,589

250

4.82

 
(734
)
(1
)
0.22

Total consumer
305,687

3,350

4.41

 
313,618

3,504

4.43

 
(7,931
)
(154
)
(0.02
)
Total loans
3,965,424

40,286

4.09

 
3,827,979

40,400

4.19

 
137,445

(114
)
(0.10
)
Total interest-earning assets
5,067,110

47,393

3.76

 
4,903,202

47,704

3.86

 
163,908

(311
)
(0.10
)
Noninterest-earning assets
327,838

 
 
 
323,833

 
 
 
4,005

 
 
Total assets

$5,394,948

 
 
 

$5,227,035

 
 
 

$167,913

 
 
Liabilities and Shareholders' Equity:
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing demand deposits

$155,416


$500

1.29
%
 

$146,408


$578

1.57
%
 

$9,008


($78
)
(0.28
)%
NOW accounts
505,282

69

0.05

 
489,374

82

0.07

 
15,908

(13
)
(0.02
)
Money market accounts
795,268

2,092

1.06

 
769,860

2,179

1.12

 
25,408

(87
)
(0.06
)
Savings accounts
374,374

62

0.07

 
365,977

68

0.07

 
8,397

(6
)

Time deposits (in-market)
780,355

4,049

2.09

 
789,864

4,157

2.09

 
(9,509
)
(108
)

Total interest-bearing in-market deposits
2,610,695

6,772

1.04

 
2,561,483

7,064

1.09

 
49,212

(292
)
(0.05
)
Wholesale brokered time deposits
391,822

1,764

1.81

 
392,001

2,080

2.11

 
(179
)
(316
)
(0.30
)
Total interest-bearing deposits
3,002,517

8,536

1.14

 
2,953,484

9,144

1.23

 
49,033

(608
)
(0.09
)
FHLB advances
1,123,754

5,765

2.06

 
1,006,246

6,015

2.37

 
117,508

(250
)
(0.31
)
Junior subordinated debentures
22,681

213

3.78

 
22,681

230

4.02

 

(17
)
(0.24
)
Total interest-bearing liabilities
4,148,952

14,514

1.41

 
3,982,411

15,389

1.53

 
166,541

(875
)
(0.12
)
Noninterest-bearing demand deposits
610,872

 
 
 
618,406

 
 
 
(7,534
)


Other liabilities
132,000

 
 
 
123,604

 
 
 
8,396



Shareholders' equity
503,124

 
 
 
502,614

 
 
 
510

 
 
Total liabilities and shareholders' equity

$5,394,948

 
 
 

$5,227,035

 
 
 

$167,913

 
 
Net interest income (FTE)
 

$32,879

 
 
 

$32,315

 
 
 

$564

 
Interest rate spread
 
 
2.35
%
 
 
 
2.33
%
 
 
 
0.02
 %
Net interest margin
 
 
2.61
%
 
 
 
2.61
%
 
 
 
 %
Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:
For the Three Months Ended
Mar 31, 2020
Dec 31, 2019
Quarter Change
Commercial loans

$278


$321


($43
)
Total

$278


$321


($43
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 

-15-



Washington Trust Bancorp, Inc. and Subsidiaries
SUPPLEMENTAL INFORMATION - Calculation of Non-GAAP Financial Measures
(Unaudited; Dollars in thousands, except per share amounts)
 
 
 
Mar 31,
2020
Dec 31,
2019
Sep 30,
2019
Jun 30,
2019
Mar 31,
2019
Tangible Book Value per Share:
 
 
 
 
 
Total shareholders' equity, as reported

$508,597


$503,492


$497,825


$484,205


$469,843

Less:
 
 
 
 
 
Goodwill
63,909

63,909

63,909

63,909

63,909

Identifiable intangible assets, net
6,988

7,218

7,448

7,684

7,923

Total tangible shareholders' equity

$437,700


$432,365


$426,468


$412,612


$398,011

 
 
 
 
 
 
Shares outstanding, as reported
17,252

17,363

17,338

17,336

17,305

 
 
 
 
 
 
Book value per share - GAAP

$29.48


$29.00


$28.71


$27.93


$27.15

Tangible book value per share - Non-GAAP

$25.37


$24.90


$24.60


$23.80


$23.00

 
 
 
 
 
 
Tangible Equity to Tangible Assets:
 
 
 
 
 
Total tangible shareholders' equity

$437,700


$432,365


$426,468


$412,612


$398,011

 
 
 
 
 
 
Total assets, as reported

$5,620,979


$5,292,659


$5,198,878


$5,189,672


$5,154,729