XNAS:WASH Washington Trust Bancorp Inc Quarterly Report 10-Q Filing - 3/31/2012

Effective Date 3/31/2012

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

(Mark One)
 x
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended MARCH 31, 2012 or
 o
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from ______ to ______.

Commission file number:  001-32991

WASHINGTON TRUST BANCORP, INC.
(Exact name of registrant as specified in its charter)

RHODE ISLAND
 
05-0404671
(State or other jurisdiction of incorporation or organization)
 
(I.R.S. 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)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. xYes          oNo

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). xYes          o No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer, or a smaller reporting company.  See definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.  (Mark one)
 
Large accelerated filer  o
 
Accelerated filer  x
Non-accelerated filer  o
 
Smaller reporting company  o
(Do not check if a smaller reporting company)
 
 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). oYes          xNo

The number of shares of common stock of the registrant outstanding as of May 1, 2012 was 16,359,383.



FORM 10-Q
WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES
For the Quarter Ended March 31, 2012
 
 
 
TABLE OF CONTENTS
 
 
Page Number
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




2


PART I.  FINANCIAL INFORMATION
ITEM 1.  FINANCIAL STATEMENTS
WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES
(Dollars in thousands,
CONSOLIDATED BALANCE SHEETS (unaudited)
except par value)
 
 
March 31,
2012
 
December 31,
2011
Assets:
 
 
 
 
Cash and due from banks
 

$79,677

 

$82,238

Short-term investments
 
4,334

 
4,782

Mortgage loans held for sale, at fair value; amortized cost $16,099 in 2012 and $19,624 in 2011
 
16,583

 
20,340

Securities:
 
 
 
 
Available for sale, at fair value; amortized cost $491,145 in 2012 and $524,036 in 2011
508,812

 
541,253

Held to maturity, at cost; fair value $50,042 in 2012 and $52,499 in 2011
 
49,472

 
52,139

Total securities
 
558,284

 
593,392

Federal Home Loan Bank stock, at cost
 
40,418

 
42,008

Loans:
 
 
 
 
Commercial and other
 
1,139,400

 
1,124,628

Residential real estate
 
696,957

 
700,414

Consumer
 
319,002

 
322,117

Total loans
 
2,155,359

 
2,147,159

Less allowance for loan losses
 
30,045

 
29,802

Net loans
 
2,125,314

 
2,117,357

Premises and equipment, net
 
26,897

 
26,028

Investment in bank-owned life insurance
 
54,268

 
53,783

Goodwill
 
58,114

 
58,114

Identifiable intangible assets, net
 
6,714

 
6,901

Other assets
 
58,087

 
59,155

Total assets
 

$3,028,690

 

$3,064,098

Liabilities:
 
 
 
 
Deposits:
 
 
 
 
Demand deposits
 

$333,833

 

$339,809

NOW accounts
 
258,986

 
257,031

Money market accounts
 
400,396

 
406,777

Savings accounts
 
257,495

 
243,904

Time deposits
 
894,852

 
878,794

Total deposits
 
2,145,562

 
2,126,315

Federal Home Loan Bank advances
 
504,933

 
540,450

Junior subordinated debentures
 
32,991

 
32,991

Other borrowings
 
819

 
19,758

Other liabilities
 
56,450

 
63,233

Total liabilities
 
2,740,755

 
2,782,747

Commitments and contingencies
 


 


Shareholders’ Equity:
 
 
 
 
Common stock of $.0625 par value; authorized 30,000,000 shares; issued 16,354,155 shares in 2012 and 16,292,471 shares in 2011
 
1,022

 
1,018

Paid-in capital
 
89,484

 
88,030

Retained earnings
 
198,827

 
194,198

Accumulated other comprehensive loss
 
(1,398
)
 
(1,895
)
Total shareholders’ equity
 
287,935

 
281,351

Total liabilities and shareholders’ equity
 

$3,028,690

 

$3,064,098



The accompanying notes are an integral part of these unaudited consolidated financial statements.
3


WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES
(Dollars and shares in thousands
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
except per share amounts)
Three months ended March 31,
2012

 
2011

Interest income:
 
 
 
Interest and fees on loans
 

$25,363

 

$24,259

Interest on securities:
Taxable
4,377

 
4,773

 
Nontaxable
693

 
769

Dividends on corporate stock and Federal Home Loan Bank stock
77

 
67

Other interest income
20

 
24

Total interest income
30,530

 
29,892

Interest expense:
 

 
 

Deposits
3,434

 
4,202

Federal Home Loan Bank advances
4,085

 
4,732

Junior subordinated debentures
392

 
390

Other interest expense
234

 
241

Total interest expense
8,145

 
9,565

Net interest income
22,385

 
20,327

Provision for loan losses
900

 
1,500

Net interest income after provision for loan losses
21,485

 
18,827

Noninterest income:
 

 
 

Wealth management services:
 

 
 

Trust and investment advisory fees
5,778

 
5,676

Mutual fund fees
1,025

 
1,123

Financial planning, commissions and other service fees
382

 
281

Wealth management services
7,185

 
7,080

Service charges on deposit accounts
759

 
932

Merchant processing fees
1,988

 
1,944

Card interchange fees
543

 
487

Income from bank-owned life insurance
486

 
476

Net gains on loan sales and commissions on loans originated for others
3,097

 
525

Net realized losses on securities

 
(29
)
Net gains on interest rate swap contracts
28

 
76

Equity in losses of unconsolidated subsidiaries
(37
)
 
(144
)
Other income
392

 
383

Noninterest income, excluding other-than-temporary impairment losses
14,441

 
11,730

Total other-than-temporary impairment losses on securities
(85
)
 
(54
)
Portion of loss recognized in other comprehensive income (before tax)
(124
)
 
21

Net impairment losses recognized in earnings
(209
)
 
(33
)
Total noninterest income
14,232

 
11,697

Noninterest expense:
 

 
 

Salaries and employee benefits
14,460

 
11,828

Net occupancy
1,526

 
1,321

Equipment
1,107

 
1,049

Merchant processing costs
1,663

 
1,669

Outsourced services
920

 
872

FDIC deposit insurance costs
458

 
723

Legal, audit and professional fees
482

 
492

Advertising and promotion
372

 
353

Amortization of intangibles
187

 
238

Foreclosed property costs
298

 
166

Other expenses
1,926

 
2,029

Total noninterest expense
23,399

 
20,740

Income before income taxes
12,318

 
9,784

Income tax expense
3,880

 
2,984

Net income

$8,438

 

$6,800

 
 
 
 
Weighted average common shares outstanding - basic
16,330

 
16,197

Weighted average common shares outstanding - diluted
16,370

 
16,230

Per share information:
Basic earnings per common share

$0.51

 

$0.42

 
Diluted earnings per common share

$0.51

 

$0.42

 
Cash dividends declared per share

$0.23

 

$0.22


The accompanying notes are an integral part of these unaudited consolidated financial statements.
4


WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES
(Dollars in thousands)
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited)
 

Three months ended March 31,
 
2012

 
2011

Net income
 

$8,438

 

$6,800

Other comprehensive income, net of tax:
 
 
 
 
Securities available for sale:
 
 
 
 
Unrealized gains on securities arising during the period
 
143

 
89

Reclassification adjustments for net realized losses on securities included in net income
 
55

 
53

Net unrealized gains on securities available for sale
 
198

 
142

Reclassification adjustment of credit-related OTTI realized losses transferred to net income
 
80

 
(13
)
Cash flow hedges:
 
 
 
 
Unrealized (losses) gains on cash flow hedges arising during the period
 
(75
)
 
49

Reclassification adjustments for net realized gains on cash flow hedges included in net income
 
110

 
123

Net unrealized gains on cash flow hedges
 
35

 
172

Defined benefit plan obligation adjustment
 
184

 
60

Total other comprehensive income, net of tax
 
497

 
361

Total comprehensive income
 

$8,935

 

$7,161




The accompanying notes are an integral part of these unaudited consolidated financial statements.
5


WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES
(Dollars and shares in thousands)
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited)

 
Common
Shares Outstanding
 
Common
Stock
 
Paid-in
Capital
 
Retained
Earnings
 
Accumulated
Other
Comprehensive
Income (Loss)
 
Total
Balance at January 1, 2011
16,172

 

$1,011

 

$84,889

 

$178,939

 

$4,025

 

$268,864

Net income
 
 
 
 
 
 
6,800

 
 
 
6,800

Total other comprehensive income, net of tax
 
 
 
 
 
 
 
 
361

 
361

Cash dividends declared
 
 
 
 
 
 
(3,603
)
 
 
 
(3,603
)
Share-based compensation
 
 
 
 
327

 
 
 
 
 
327

Exercise of stock options, issuance of other compensation-related equity instruments and related tax benefit
51

 
3

 
897

 
 
 
 
 
900

Shares issued – dividend reinvestment plan
11

 
1

 
235

 
 
 
 
 
236

Balance at March 31, 2011
16,234

 

$1,015

 

$86,348

 

$182,136

 

$4,386

 

$273,885



 
Common
Shares Outstanding
 
Common
Stock
 
Paid-in
Capital
 
Retained
Earnings
 
Accumulated
Other
Comprehensive
Income (Loss)
 
Total
Balance at January 1, 2012
16,292

 

$1,018

 

$88,030

 

$194,198

 

($1,895
)
 

$281,351

Net income
 
 
 
 
 
 
8,438

 
 
 
8,438

Total other comprehensive income, net of tax
 
 
 
 
 
 
 
 
497

 
497

Cash dividends declared
 
 
 
 
 
 
(3,809
)
 
 
 
(3,809
)
Share-based compensation
 
 
 
 
412

 
 
 
 
 
412

Deferred compensation plan
10

 
1

 
145

 
 
 
 
 
146

Exercise of stock options, issuance of other compensation-related equity instruments and related tax benefit
52

 
3

 
897

 
 
 
 
 
900

Balance at March 31, 2012
16,354

 

$1,022

 

$89,484

 

$198,827

 

($1,398
)
 

$287,935




The accompanying notes are an integral part of these unaudited consolidated financial statements.
6


WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES
(Dollars in thousands)
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
 
Three months ended March 31,
2012

 
2011

Cash flows from operating activities:
 
 
 
Net income

$8,438

 

$6,800

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Provision for loan losses
900

 
1,500

Depreciation of premises and equipment
783

 
767

Foreclosed and repossessed property valuation adjustments
119

 
155

Net amortization of premium and discount
522

 
373

Net amortization of intangibles
187

 
238

Share-based compensation
412

 
327

Income from bank-owned life insurance
(486
)
 
(476
)
Net gains on loan sales and commissions on loans originated for others
(3,097
)
 
(525
)
Net realized losses on securities

 
29

Net impairment losses recognized in earnings
209

 
33

Net gains on interest rate swap contracts
(28
)
 
(76
)
Equity in losses of unconsolidated subsidiaries
37

 
144

Proceeds from sales of loans
110,632

 
32,066

Loans originated for sale
(97,682
)
 
(20,267
)
(Increase) decrease in other assets
(18
)
 
2,925

Decrease in other liabilities
(6,488
)
 
(3,103
)
Net cash provided by operating activities
14,440

 
20,910

Cash flows from investing activities:
 

 
 

Purchases of mortgage-backed securities available for sale

 
(49,675
)
Proceeds from sale of:
Mortgage-backed securities available for sale

 
36,838

 
Other investment securities available for sale
2,000

 

Maturities and principal payments of:
Mortgage-backed securities available for sale
29,508

 
30,519

 
Other investment securities available for sale
681

 

 
Mortgage-backed securities held to maturity
2,525

 

Sale of Federal Home Loan Bank stock
1,590

 

Net increase in loans
(13,573
)
 
(33,606
)
Purchases of loans, including purchased interest
(1,278
)
 
(1,710
)
Proceeds from the sale of property acquired through foreclosure or repossession
517

 
251

Purchases of premises and equipment
(1,652
)
 
(713
)
Net cash provided by (used in) investing activities
20,318

 
(18,096
)
Cash flows from financing activities:
 

 
 

Net increase in deposits
19,247

 
12,517

Net decrease in other borrowings
(18,939
)
 
(1,892
)
Proceeds from Federal Home Loan Bank advances
135,429

 
43,578

Repayment of Federal Home Loan Bank advances
(170,946
)
 
(73,065
)
Proceeds from the issuance of common stock under dividend reinvestment plan

 
235

Proceeds from the exercise of stock options and issuance of other compensation-related equity instruments
937

 
819

Tax benefit from stock option exercises and issuance of other compensation-related equity instruments
109

 
81

Cash dividends paid
(3,604
)
 
(3,414
)
Net cash used in financing activities
(37,767
)
 
(21,141
)
Net decrease in cash and cash equivalents
(3,009
)
 
(18,327
)
Cash and cash equivalents at beginning of period
87,020

 
92,736

Cash and cash equivalents at end of period

$84,011

 

$74,409

 
 
 
 
 
Noncash Investing and Financing Activities:
 
 
 
Loans charged off

$681

 

$1,052

Loans transferred to property acquired through foreclosure or repossession
1,519

 
129

 
 
 
 
 
Supplemental Disclosures:
 
 
 
 
Interest payments

$7,957

 

$9,190

Income tax payments (refunds)
440

 
(584
)



The accompanying notes are an integral part of these unaudited consolidated financial statements.
7


WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES
CONDENSED NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS




(1)
General and Basis of Presentation
Washington Trust Bancorp, Inc. (the “Bancorp”) is a publicly-owned registered bank holding company and financial holding company.  The Bancorp owns all of the outstanding common stock of The Washington Trust Company (the “Bank”), a Rhode Island chartered commercial bank founded in 1800.  Through its subsidiaries, the Bancorp offers a complete product line of financial services including commercial, residential and consumer lending, retail and commercial deposit products, and wealth management services through its offices in Rhode Island, eastern Massachusetts and Connecticut.

The consolidated financial statements include the accounts of the Bancorp and its subsidiaries (collectively, the “Corporation” or “Washington Trust”).  All significant intercompany transactions have been eliminated.  Certain prior year amounts have been reclassified to conform to the current year classification.  Such reclassifications have no effect on previously reported net income or shareholders’ equity.

The accounting and reporting policies of the Corporation conform to accounting principles generally accepted in the United States of America (“GAAP”) and to general practices of the banking industry.  In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period.  Actual results could differ from those estimates.  Material estimates that are particularly susceptible to change are the determination of the allowance for loan losses and the review of goodwill, other intangible assets and investments for impairment.  The current economic environment has increased the degree of uncertainty inherent in such estimates and assumptions.

In the opinion of management, the accompanying consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) and disclosures necessary to present fairly the Corporation’s financial position as of March 31, 2012 and December 31, 2011, respectively, and the results of operations and cash flows for the interim periods presented. Interim results are not necessarily reflective of the results of the entire year.  The unaudited consolidated financial statements of the Corporation presented herein have been prepared pursuant to the rules of the Securities and Exchange Commission (“SEC”) for quarterly reports on Form 10-Q and do not include all of the information and note disclosures required by GAAP.  The accompanying consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2011.

(2)
Recently Issued Accounting Pronouncements
Fair Value Measurement – Topic 820
Accounting Standards Update No. 2011-04, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and International Financial Reporting Standards (“ASU 2011-04”), was issued in May 2011. The amendments in ASU 2011-04 added language to clarify many of the requirements in GAAP for measuring fair value and for disclosing information about fair value measurements, as well as prescribed additional disclosures for Level 3 fair value measurements and financial instruments not carried at fair value. For many of the requirements, the Financial Accounting Standards Board (“FASB”) did not intend for ASU 2011-04 to result in a change in the application of the requirements in GAAP. The amendments required by ASU 2011-04 were to be applied prospectively and were effective for fiscal years and interim periods within those years, beginning after December 15, 2011. The Corporation adopted ASU 2011-04 in the first quarter of 2012, provided the additional disclosures required and made the election to use the exception permitted with respect to measuring counterparty credit risk on our interest rate derivative contracts. See Note 10 to the Consolidated Financial Statements for additional information. The adoption of ASU 2011-04 did not have a material impact on the Corporation’s consolidated financial position, results of operations or cash flows.

Comprehensive Income – Topic 220
Accounting Standards Update No. 2011-05, “Presentation of Comprehensive Income” (“ASU 2011-05”), was issued in June 2011.  The FASB issued ASU 2011-05 to improve the comparability and transparency of financial reporting and to increase the prominence of items reported in other comprehensive income.  ASU 2011-05 eliminates the option to present components of other comprehensive income as part of the statement of changes in stockholders’ equity.  ASU 2011-05 requires that all non-owner changes in stockholders’ equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements.  Accounting Standards Update No. 2011-12, “Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05” (“ASU 2011-12”), was issued in December 2011. ASU 2011-12 deferred the effective date of the requirement to present separate line items on the income statement for reclassification adjustments of items out of accumulated



8


WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES
CONDENSED NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(Continued)



other comprehensive income into net income. All other requirements in ASU 2011-05 were not affected by this amendment. The provisions of ASU 2011-05, exclusive of the provisions pertaining to the reclassification adjustments deferred by ASU 2011-12, were to be applied retrospectively and were effective for fiscal years and interim periods within those years, beginning after December 15, 2011. The Corporation adopted these provisions of ASU 2011-05 in the first quarter of 2012 and elected to present comprehensive income in a separate financial statement, the Consolidated Statements of Comprehensive Income. The adoption of these provisions of ASU 2011-05 did not have a material impact on the Corporation’s consolidated financial position, results of operations or cash flows.

Intangibles-Goodwill and Other – Topic 350
Accounting Standards Update No. 2011-08, “Testing for Goodwill Impairment” (“ASU 2011-08”), was issued in September 2011. The objective of ASU 2011-08 was to simplify the testing of goodwill for impairment by allowing entities to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative test. There will no longer be a requirement to calculate the fair value of a reporting unit unless it is determined, based on a qualitative assessment, that it is more-likely-than-not that its fair value is less than its carrying amount. The more-likely-than-not threshold was defined as having a likelihood of more than 50 percent. The provisions of ASU 2011-08 are effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. The adoption of ASU 2011-08 did not have a material impact on the Corporation’s consolidated financial position, results of operations or cash flows.

Balance Sheet - Topic 210
Accounting Standards Update No. 2011-11, “Disclosures about Offsetting Assets and Liabilities” (“ASU 2011-11”), was issued in December 2011 and was intended to enhance current disclosure requirements on offsetting financial assets and liabilities. The requirements in ASU 2011-11 enables users to compare balance sheets prepared under U.S. GAAP and International Financial Reporting Standards (“IFRS”), which are subject to different offsetting models. The requirements affect all entities that have financial instruments that are either offset in the balance sheet or subject to an enforceable master netting arrangement or similar agreement. ASU 2011-11 will be effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. The required disclosures shall be provided retrospectively for all comparative periods presented. The adoption of ASU 2011-11 is not expected to have a material impact on the Corporation’s consolidated financial position, results of operations or cash flows.

(3)
Cash and Due from Banks
The Bank is required to maintain certain average reserve balances with the Board of Governors of the Federal Reserve System.  Such reserve balances amounted to $4.0 million at both March 31, 2012 and December 31, 2011 and are included in cash and due from banks in the Consolidated Statements of Condition.

As of March 31, 2012 and December 31, 2011, cash and due from banks included interest-bearing deposits in other banks of $33.2 million and $41.6 million, respectively.




9


WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES
CONDENSED NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(Continued)



(4)
Securities
The following tables present the amortized cost, gross unrealized holding gains, gross unrealized holding losses and fair value of securities by major security type and class of security at March 31, 2012 and December 31, 2011.

(Dollars in thousands)
 
 
 
 
 
 
 
March 31, 2012
Amortized Cost (1)
 
Unrealized Gains
 
Unrealized Losses
 
Fair
Value
Securities Available for Sale:
 
 
 
 
 
 
 
Obligations of U.S. government-sponsored enterprises

$29,437

 

$3,182

 

$—

 

$32,619

Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises
339,934

 
19,290

 

 
359,224

States and political subdivisions
71,344

 
5,011

 

 
76,355

Trust preferred securities:
 
 
 
 
 
 
 
Individual name issuers
30,648

 

 
(7,476
)
 
23,172

Collateralized debt obligations
4,047

 

 
(3,298
)
 
749

Corporate bonds
13,880

 
784

 
(28
)
 
14,636

Perpetual preferred stocks (2)
1,855

 
202

 

 
2,057

Total securities available for sale

$491,145

 

$28,469

 

($10,802
)
 

$508,812

Held to Maturity:
 
 
 
 
 
 
 
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises

$49,472

 

$570

 

$—

 

$50,042

Total securities held to maturity

$49,472

 

$570

 

$—

 

$50,042

Total securities

$540,617

 

$29,039

 

($10,802
)
 

$558,854


(Dollars in thousands)
 
 
 
 
 
 
 
December 31, 2011
Amortized Cost (1)
 
Unrealized Gains
 
Unrealized Losses
 
Fair
Value
Securities Available for Sale:
 
 
 
 
 
 
 
Obligations of U.S. government-sponsored enterprises

$29,429

 

$3,404

 

$—

 

$32,833

Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises
369,946

 
19,712

 

 
389,658

States and political subdivisions
74,040

 
5,453

 

 
79,493

Trust preferred securities:
 
 
 
 
 
 
 
Individual name issuers
30,639

 

 
(8,243
)
 
22,396

Collateralized debt obligations
4,256

 

 
(3,369
)
 
887

Corporate bonds
13,872

 
813

 
(403
)
 
14,282

Perpetual preferred stocks (2)
1,854

 

 
(150
)
 
1,704

Total securities available for sale

$524,036

 

$29,382

 

($12,165
)
 

$541,253

Held to Maturity:
 
 
 
 
 
 
 
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises

$52,139

 

$360

 

$—

 

$52,499

Total securities held to maturity

$52,139

 

$360

 

$—

 

$52,499

Total securities

$576,175

 

$29,742

 

($12,165
)
 

$593,752

(1)    Net of other-than-temporary impairment losses.
(2)    Callable at the discretion of the issuer.



10


WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES
CONDENSED NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(Continued)



Securities available for sale (“AFS”) and held to maturity (“HTM”) with a fair value of $492.0 million and $516.8 million were pledged in compliance with state regulations concerning trust powers and to secure borrowings, certain public deposits and certain interest rate swap agreements at March 31, 2012 and December 31, 2011, respectively.  See Note 7 for additional disclosure regarding Federal Home Loan Bank of Boston (“FHLBB”) borrowings.   Securities available for sale with a fair value of $28.3 million and $20.6 million were pledged for potential use at the Federal Reserve Bank discount window at March 31, 2012 and December 31, 2011.  There were no borrowings with the Federal Reserve Bank at either date.  As of March 31, 2012 and December 31, 2011, securities available for sale with a fair value of $7.0 million and $7.5 million, respectively, were designated in rabbi trusts for nonqualified retirement plans. In addition, securities available for sale with a fair value of $13.4 million were pledged to secure Treasury Tax and Loan deposits at December 31, 2011.

The following table presents a roll forward of the balance of credit-related impairment losses on debt securities, for which a portion of an other-than-temporary impairment was recognized in other comprehensive income:
(Dollars in thousands)
 
Three months ended March 31,
2012

 
2011

Balance at beginning of period

$3,104

 

$2,913

Credit-related impairment loss on debt securities for which an other-than-temporary impairment was not previously recognized

 

Additional increases to the amount of credit-related impairment loss on debt securities for which an other-than-temporary impairment was previously recognized
209

 
33

Balance at end of period

$3,313

 

$2,946


For the three months ended March 31, 2012 and 2011, credit-related impairment losses recognized in earnings on a pooled trust preferred debt security totaled $209 thousand and $33 thousand, respectively. The anticipated cash flows expected to be collected from these debt securities were discounted at the rate equal to the yield used to accrete the current and prospective beneficial interest for each security.  Significant inputs included estimated cash flows and prospective defaults and recoveries.  Estimated cash flows are generated based on the underlying seniority status and subordination structure of the pooled trust preferred debt tranche at the time of measurement.  Prospective default and recovery estimates affecting projected cash flows were based on analysis of the underlying financial condition of individual issuers, and took into account capital adequacy, credit quality, lending concentrations, and other factors.  

All cash flow estimates were based on the underlying security’s tranche structure and contractual rate and maturity terms.  The present value of the expected cash flows was compared to the current outstanding balance of the tranche to determine the ratio of the estimated present value of expected cash flows to the total current balance for the tranche.  This ratio was then multiplied by the principal balance of Washington Trust’s holding to determine the credit-related impairment loss.  The estimates used in the determination of the present value of the expected cash flows are susceptible to changes in future periods, which could result in additional credit-related impairment losses.

The following table summarizes temporarily impaired securities at March 31, 2012, segregated by length of time the securities have been in a continuous unrealized loss position:

(Dollars in thousands)
Less than 12 Months
 
12 Months or Longer
 
Total
March 31, 2012
#

 
Fair
Value
 
Unrealized
Losses
 
#

 
Fair
Value
 
Unrealized
Losses
 
#

 
Fair
Value
 
Unrealized
Losses
Trust preferred securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individual name issuers

 

$—

 

$—

 
11

 

$23,172

 

$7,476

 
11

 

$23,172

 

$7,476

Collateralized debt obligations

 

 

 
2

 
749

 
3,298

 
2

 
749

 
3,298

Corporate bonds
2

 
4,972

 
28

 

 

 

 
2

 
4,972

 
28

Total temporarily impaired securities
2

 

$4,972

 

$28

 
13

 

$23,921

 

$10,774

 
15

 

$28,893

 

$10,802




11


WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES
CONDENSED NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(Continued)



The following table summarizes temporarily impaired securities at December 31, 2011, segregated by length of time the securities have been in a continuous unrealized loss position:

(Dollars in thousands)
Less than 12 Months
 
12 Months or Longer
 
Total
December 31, 2011
#

 
Fair
Value
 
Unrealized
Losses
 
#

 
Fair
Value
 
Unrealized
Losses
 
#

 
Fair
Value
 
Unrealized
Losses
Trust preferred securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individual name issuers

 

$—

 

$—

 
11

 

$22,396

 

$8,243

 
11

 

$22,396

 

$8,243

Collateralized debt obligations

 

 

 
2

 
887

 
3,369

 
2

 
887

 
3,369

Corporate bonds
3

 
5,203

 
403

 

 

 

 
3

 
5,203

 
403

Subtotal, debt securities
3

 
5,203

 
403

 
13

 
23,283

 
11,612

 
16

 
28,486

 
12,015

Perpetual preferred stocks
2

 
1,704

 
150

 

 

 

 
2

 
1,704

 
150

Total temporarily impaired securities
5

 

$6,907

 

$553

 
13

 

$23,283

 

$11,612

 
18

 

$30,190

 

$12,165


Unrealized losses on debt securities generally occur as a result of increases in interest rates since the time of purchase, a structural change in an investment or deterioration in credit quality of the issuer.  Management evaluates impairments in value whether caused by adverse interest rates or credit movements to determine if they are other-than-temporary.

Further deterioration in credit quality of the companies backing the securities, further deterioration in the condition of the financial services industry, a continuation or worsening of the current economic downturn, or additional declines in real estate values, among other things, may further affect the fair value of these securities and increase the potential that certain unrealized losses be designated as other-than-temporary in future periods, and the Corporation may incur additional write-downs.

Trust Preferred Debt Securities of Individual Name Issuers
Included in debt securities in an unrealized loss position at March 31, 2012 were 11 trust preferred security holdings issued by seven individual companies in the financial services/banking industry.  The aggregate unrealized losses on these debt securities amounted to $7.5 million at March 31, 2012.  Management believes the decline in fair value of these trust preferred securities primarily reflects investor concerns about global economic growth and how it will affect the recent and potential future losses in the financial services industry.  These concerns resulted in increased risk premiums for securities in this sector.  Based on the information available through the filing date of this report, all individual name trust preferred debt securities held in our portfolio continue to accrue and make payments as expected with no payment deferrals or defaults on the part of the issuers.  As of March 31, 2012, trust preferred debt securities with an amortized cost of $11.8 million and unrealized losses of $3.3 million were rated below investment grade by Standard & Poors, Inc. (“S&P”).  Management reviewed the collectibility of these securities taking into consideration such factors as the financial condition of the issuers, reported regulatory capital ratios of the issuers, credit ratings including ratings in effect as of the reporting period date as well as credit rating changes between the reporting period date and the filing date of this report and other information.  We noted no additional downgrades to below investment grade between the reporting period date and the filing date of this report.  Based on these analyses, management concluded that it expects to recover the entire amortized cost basis of these securities.  Furthermore, Washington Trust does not intend to sell these securities and it is not more likely than not that Washington Trust will be required to sell these securities before recovery of their cost basis, which may be maturity.  Therefore, management does not consider these investments to be other-than-temporarily impaired at March 31, 2012.

Trust Preferred Debt Securities in the Form of Collateralized Debt Obligations
Washington Trust has two pooled trust preferred holdings in the form of collateralized debt obligations with a total amortized cost of $4.0 million and aggregate unrealized losses of $3.3 million at March 31, 2012.  These pooled trust preferred holdings consist of trust preferred obligations of banking industry companies and, to a lesser extent, insurance industry companies.  For both of these pooled trust preferred securities, Washington Trust’s investment is senior to one or more subordinated tranches which have first loss exposure.  Valuations of the pooled trust preferred holdings are dependent in part on cash flows from underlying issuers.  Unexpected cash flow disruptions could have an adverse impact on the fair value and performance of pooled trust preferred securities.  Management believes the unrealized losses on these pooled trust preferred securities primarily reflect investor concerns about global economic growth and how it will affect the recent and potential future losses in the financial services industry and the possibility of further incremental deferrals of or defaults on interest payments on trust preferred debentures by financial institutions participating in these pools.  These concerns have resulted in a substantial decrease in market



12


WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES
CONDENSED NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(Continued)



liquidity and increased risk premiums for securities in this sector.  Credit spreads for issuers in this sector have remained wide during recent months, causing prices for these securities holdings to remain at low levels.

As of March 31, 2012, one of the pooled trust preferred securities had an amortized cost of $2.8 million.  This security was placed on nonaccrual status in March 2009. The tranche instrument held by Washington Trust has been deferring a portion of interest payments since April 2010.  The March 31, 2012 amortized cost was net of $2.1 million of credit-related impairment losses previously recognized in earnings, reflective of payment deferrals and credit deterioration of the underlying collateral. Included in the $2.1 million were credit-related impairment losses of $209 thousand recorded in 2012, reflecting adverse changes in the expected cash flows for this security. As of March 31, 2012, this security has unrealized losses of $2.2 million and a below investment grade rating of “Ca” by Moody’s Investors Service Inc. (“Moody’s”).  Through the filing date of this report, there have been no further rating changes on this security.  This credit rating status has been considered by management in its assessment of the impairment status of this security.

As of March 31, 2012, the second pooled trust preferred security held by Washington Trust had an amortized cost of $1.3 million.  This security was placed on nonaccrual status in December 2008. The tranche instrument held by Washington Trust has been deferring interest payments since December 2008. The March 31, 2012 amortized cost was net of $1.2 million of credit-related impairment losses previously recognized in earnings reflective of payment deferrals and credit deterioration of the underlying collateral.  As of March 31, 2012, this security has unrealized losses of $1.1 million and a below investment grade rating of “C” by Moody’s.  Through the filing date of this report, there have been no rating changes on this security.  This credit rating status has been considered by management in its assessment of the impairment status of this security. The analysis of the expected cash flows for this security as of March 31, 2012 did not negatively affect the amount of credit-related impairment losses previously recognized on this security.

Based on information available through the filing date of this report, there have been no further adverse changes in the deferral or default status of the underlying issuer institutions within either of these trust preferred collateralized debt obligations.  Based on cash flow forecasts for these securities, management expects to recover the remaining amortized cost of these securities.  Furthermore, Washington Trust does not intend to sell these securities and it is not more likely than not that Washington Trust will be required to sell these securities before recovery of their cost basis, which may be at maturity.  Therefore, management does not consider the unrealized losses on these investments to be other-than-temporary.




13


WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES
CONDENSED NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(Continued)



As of March 31, 2012, the amortized cost of debt securities by maturity is presented below.  Mortgage-backed securities are included based on weighted average maturities, adjusted for anticipated prepayments.  All other securities are included based on contractual maturities.  Actual maturities may differ from amounts presented because certain issuers have the right to call or prepay obligations with or without call or prepayment penalties.  Yields on tax exempt obligations are not computed on a tax equivalent basis.  Included in the securities portfolio at March 31, 2012 were debt securities with an amortized cost balance of $94.2 million and a fair value of $89.3 million that are callable at the discretion of the issuers.  Final maturities of the callable securities range from four to twenty-six years, with call features ranging from one month to six years.

(Dollars in thousands)
Within 1 Year
 
1-5 Years
 
5-10 Years
 
After 10 Years
 
Totals
Securities Available for Sale:
 
 
 
 
 
 
 
 
 
Obligations of U.S. government-sponsored enterprises:
 
 
 
 
 
 
 
 
 
Amortized cost

$—

 

$29,437

 

$—

 

$—

 

$29,437

Weighted average yield
%
 
5.41
%
 
%
 
%
 
5.41
%
Mortgage-backed securities issued by U.S. government-sponsored enterprises:
 
 
 
 
 
 
 
 
 
Amortized cost
106,392

 
176,342

 
46,382

 
10,818

 
339,934

Weighted average yield
4.30
%
 
3.86
%
 
2.48
%
 
2.24
%
 
3.76
%
State and political subdivisions:
 
 
 
 
 
 
 
 
 
Amortized cost
3,823

 
65,282

 
2,239

 

 
71,344

Weighted average yield
3.68
%
 
3.90
%
 
3.90
%
 
%
 
3.89
%
Trust preferred securities:
 
 
 
 
 
 
 
 
 
Amortized cost (1)

 

 

 
34,695

 
34,695

Weighted average yield
%
 
%
 
%
 
1.84
%
 
1.84
%
Corporate bonds:
 
 
 
 
 
 
 
 
 
Amortized cost

 
13,880

 

 

 
13,880

Weighted average yield
%
 
5.10
%
 
%
 
%
 
5.10
%
Total debt securities available for sale:
 
 
 
 
 
 
 
 
 
Amortized cost

$110,215

 

$284,941

 

$48,621

 

$45,513

 

$489,290

Weighted average yield
4.28
%
 
4.09
%
 
2.55
%
 
1.93
%
 
3.78
%
Fair value

$116,521

 

$292,697

 

$51,410

 

$46,127

 

$506,755

Securities Held to Maturity:
 
 
 
 
 
 
 
 
 
Mortgage-backed securities issued by U.S. government-sponsored enterprises:
 
 
 
 
 
 
 
 
 
Amortized cost

$11,225

 

$25,018

 

$10,213

 

$3,016

 

$49,472

Weighted average yield
2.55
%
 
2.44
%
 
2.32
%
 
1.52
%
 
2.38
%
Fair value

$11,795

 

$25,018

 

$10,213

 

$3,016

 

$50,042

(1)
Net of other-than-temporary impairment losses.




14


WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES
CONDENSED NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(Continued)



(5)
Loans
The following is a summary of loans:
(Dollars in thousands)
Mar 31, 2012
 
Dec 31, 2011
 
Amount

 
%

 
Amount

 
%

Commercial:
 
 
 
 
 
 
 
Mortgages (1)

$642,012

 
30
%
 

$624,813

 
29
%
Construction and development (2)
11,130

 
1

 
10,955

 
1

Other (3)
486,258

 
22

 
488,860

 
22

Total commercial
1,139,400

 
53

 
1,124,628

 
52

Residential real estate:
 
 
 
 
 
 
 
Mortgages (4)
675,249

 
31

 
678,582

 
32

Homeowner construction
21,708

 
1

 
21,832

 
1

Total residential real estate
696,957

 
32

 
700,414

 
33

Consumer:
 
 
 
 
 
 
 
Home equity lines (5)
223,311

 
10

 
223,430

 
10

Home equity loans (5)
40,793

 
2

 
43,121

 
2

Other (6)
54,898

 
3

 
55,566

 
3

Total consumer
319,002

 
15

 
322,117

 
15

Total loans (7)

$2,155,359

 
100
%
 

$2,147,159

 
100
%
(1)
Amortizing mortgages and lines of credit, primarily secured by income producing property. As of March 31, 2012 and December 31, 2011, $106.2 million and $107.1 million, respectively, of these loans were pledged as collateral for FHLBB borrowings (see Note 7).
(2)
Loans for construction of residential and commercial properties and for land development.
(3)
Loans to businesses and individuals, a substantial portion of which are fully or partially collateralized by real estate. As of March 31, 2012, $25.8 million and $37.9 million, respectively, of these loans were pledged as collateral for FHLBB borrowings and were collateralized for the discount window at the Federal Reserve Bank.  Comparable amounts for December 31, 2011 were $27.2 million and $42.1 million, respectively (see Note 7).
(4)
As of March 31, 2012 and December 31, 2011, $598.3 million and $611.8 million, respectively, of these loans were pledged as collateral for FHLBB borrowings (see Note 7).
(5)
As of March 31, 2012 and December 31, 2011, $191.2 million and $165.4 million, respectively, of these loans were pledged as collateral for FHLBB borrowings (see Note 7).
(6)
Fixed rate consumer installment loans.
(7)
Includes net unamortized loan origination costs of $83 thousand and $31 thousand, respectively, and net unamortized premiums on purchased loans of $77 thousand and $67 thousand, respectively, at March 31, 2012 and December 31, 2011, respectively.




15


WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES
CONDENSED NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(Continued)



Nonaccrual Loans
Loans, with the exception of certain well-secured residential mortgage loans that are in the process of collection, are placed on nonaccrual status and interest recognition is suspended when such loans are 90 days or more overdue with respect to principal and/or interest or sooner if considered appropriate by management. Well-secured residential mortgage loans are permitted to remain on accrual status provided that full collection of principal and interest is assured and the loan is in the process of collection. Loans are also placed on nonaccrual status when, in the opinion of management, full collection of principal and interest is doubtful. Interest previously accrued but not collected on such loans is reversed against current period income. Subsequent interest payments received on nonaccrual loans are applied to the outstanding principal balance of the loan or recognized as interest income depending on management's assessment of the ultimate collectability of the loan. Loans are removed from nonaccrual status when they have been current as to principal and interest for a period of time, the borrower has demonstrated an ability to comply with repayment terms, and when, in management's opinion, the loans are considered to be fully collectible.

The following is a summary of nonaccrual loans, segregated by class of loans, as of the dates indicated:
(Dollars in thousands)
Mar 31,
2012
 
Dec 31,
2011
Commercial:
 
 
 
Mortgages

$5,099

 

$5,709

Construction and development

 

Other
4,200

 
3,708

Residential real estate:
 
 
 
Mortgages
9,031

 
10,614

Homeowner construction

 

Consumer:
 
 
 
Home equity lines
783

 
718

Home equity loans
203

 
335

Other
83

 
153

Total nonaccrual loans

$19,399

 

$21,237

Accruing loans 90 days or more past due

$—

 

$—


As of March 31, 2012 and December 31, 2011, nonaccrual loans of $4.7 million and $3.6 million, respectively, were current as to the payment of principal and interest.




16


WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES
CONDENSED NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(Continued)



Past Due Loans
Past due status is based on the contractual payment terms of the loan. The following tables present an age analysis of past due loans, segregated by class of loans, as of the dates indicated:

(Dollars in thousands)
Days Past Due
 
 
 
 
 
 
March 31, 2012
30-59
 
60-89
 
Over 90
 
Total Past Due
 
Current
 
Total Loans
Commercial:
 
 
 
 
 
 
 
 
 
 
 
Mortgages

$104

 

$—

 

$4,676

 

$4,780

 

$637,232

 

$642,012

Construction and development

 

 

 

 
11,130

 
11,130

Other
1,031

 
33

 
2,521

 
3,585

 
482,673

 
486,258

Residential real estate:
 
 
 
 
 
 
 
 
 
 
 
Mortgages
4,468

 
488

 
4,843

 
9,799

 
665,450

 
675,249

Homeowner construction

 

 

 

 
21,708

 
21,708

Consumer:
 
 
 
 
 
 
 
 
 
 
 
Home equity lines
1,793

 
48

 
191

 
2,032

 
221,279

 
223,311

Home equity loans
452

 
171

 
53

 
676

 
40,117

 
40,793

Other
159

 

 
82

 
241

 
54,657

 
54,898

Total loans

$8,007

 

$740

 

$12,366

 

$21,113

 

$2,134,246

 

$2,155,359


(Dollars in thousands)
Days Past Due
 
 
 
 
 
 
December 31, 2011
30-59
 
60-89
 
Over 90
 
Total Past Due
 
Current
 
Total Loans
Commercial:
 
 
 
 
 
 
 
 
 
 
 
Mortgages

$1,621

 

$315

 

$4,995

 

$6,931

 

$617,882

 

$624,813

Construction and development

 

 

 

 
10,955

 
10,955

Other
3,760

 
982

 
633

 
5,375

 
483,485

 
488,860

Residential real estate:
 
 
 
 
 
 
 
 
 
 
 
Mortgages
3,969

 
1,505

 
6,283

 
11,757

 
666,825

 
678,582

Homeowner construction

 

 

 

 
21,832

 
21,832

Consumer:
 
 
 
 
 
 
 
 
 
 
 
Home equity lines
645

 
210

 
525

 
1,380

 
222,050

 
223,430

Home equity loans
362

 
46

 
202

 
610

 
42,511

 
43,121

Other
66

 
7

 
147

 
220

 
55,346

 
55,566

Total loans

$10,423

 

$3,065

 

$12,785

 

$26,273

 

$2,120,886

 

$2,147,159


Included in past due loans as of March 31, 2012 and December 31, 2011, were nonaccrual loans of $14.7 million and $17.6 million, respectively.




17


WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES
CONDENSED NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(Continued)



Impaired Loans
Impaired loans are loans for which it is probable that the Corporation will not be able to collect all amounts due according to the contractual terms of the loan agreements and loans restructured in a troubled debt restructuring. Impaired loans do not include large groups of smaller-balance homogeneous loans that are collectively evaluated for impairment, which consist of most residential mortgage loans and consumer loans. The following is a summary of impaired loans, as of the dates indicated:
(Dollars in thousands)
Recorded
Investment (1)
 
Unpaid
Principal
 
Related
Allowance
 
Mar 31,
2012
 
Dec 31,
2011
 
Mar 31,
2012
 
Dec 31,
2011
 
Mar 31,
2012
 
Dec 31,
2011
No Related Allowance Recorded:
 
 
 
 
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
 
 
 
 
Mortgages

$1,514

 

$7,093

 

$1,963

 

$7,076

 

$—

 

$—

Construction and development

 

 

 

 

 

Other
2,823

 
1,622

 
2,816

 
1,620

 

 

Residential real estate:
 
 
 
 
 
 
 
 
 
 
 
Mortgages
2,321

 
2,383

 
2,701

 
2,471

 

 

Homeowner construction

 

 

 

 

 

Consumer:
 
 
 
 
 
 
 
 
 
 
 
Home equity lines

 

 

 

 

 

Home equity loans

 

 

 

 

 

Other

 

 

 

 

 

Subtotal

$6,658

 

$11,098

 

$7,480

 

$11,167

 

$—

 

$—

With Related Allowance Recorded:
 
 
 
 
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
 
 
 
 
Mortgages

$4,647

 

$5,023

 

$5,852

 

$6,760

 

$149

 

$329

Construction and development

 

 

 

 

 

Other
8,733

 
8,739

 
9,430

 
9,740

 
1,021

 
839

Residential real estate:
 
 
 
 
 
 
 
 
 
 
 
Mortgages
2,785

 
3,606

 
3,049

 
4,138

 
379

 
495

Homeowner construction

 

 

 

 

 

Consumer:
 
 
 
 
 
 
 
 
 
 
 
Home equity lines
172

 
278

 
247

 
373

 
34

 
82

Home equity loans
127

 
130

 
150

 
153

 
1

 
1

Other
144

 
205

 
142

 
227

 
2

 
69

Subtotal

$16,608

 

$17,981

 

$18,870

 

$21,391

 

$1,586

 

$1,815

Total impaired loans

$23,266

 

$29,079

 

$26,350

 

$32,558

 

$1,586

 

$1,815

Total:
 
 
 
 
 
 
 
 
 
 
 
Commercial

$17,717

 

$22,477

 

$20,061

 

$25,196

 

$1,170

 

$1,168

Residential real estate
5,106

 
5,989

 
5,750

 
6,609

 
379