WESTERLY — Washington Trust Bancorp Inc., which announced employee raises and bonuses last month in response to the federal tax overhaul, said another provision of the law was responsible for reducing its profits in 2017. In its fourth-quarter report, the company said that net income for the year ending Dec. 31, 2017, totaled $45.9 million, or $2.64 per diluted share, compared with $46.5 million, or $2.70 per diluted share, in 2016.
The bank’s tax rate in recent years has been more than 30 percent, and the new law will cut it to 21 percent. However, the act also required companies to revalue deferred tax assets and liabilities. As a result, in the fourth quarter of 2017, Washington Trust said it took a non-cash charge of $6.2 million. The adjustment reduced 2017 earnings per diluted share by $0.36.
Full-year net interest income rose by 8 percent and amounted to $120 million, a record level, the company said. Total loans were $3.4 billion and year-end deposits stood at $3.2 billion.