• Washington Trust Bancorp, Inc.
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  • Washington Trust Announces Record Net Income for Fourth Quarter and Full Year 2011
    Company Release - 01/25/2012 16:07

    WESTERLY, R.I.--(BUSINESS WIRE)-- Washington Trust Bancorp, Inc. (NASDAQ Global Select; symbol: WASH), parent company of The Washington Trust Company, today announced fourth quarter 2011 net income of $7.8 million compared to third quarter 2011 net income of $7.6 million and fourth quarter 2010 net income of $7.2 million. On a diluted earnings per share basis, Washington Trust reported earnings of 47 cents for the fourth quarter of 2011, compared to 46 cents for the previous quarter and up by 7% from the 44 cents reported for the fourth quarter of 2010. Fourth quarter 2011 earnings includes a reduction of 3 cents per diluted share related to certain transactions described below.

    For the year ended December 31, 2011, net income totaled $29.7 million, or $1.82 per diluted share, compared to $24.1 million, or $1.49 per diluted share, for 2010. On a diluted earnings per share basis, 2011 earnings were up by 22% over 2010. The returns on average equity and average assets for 2011 were 10.61% and 1.02%, respectively, compared to 9.09% and 0.82%, respectively, for 2010.

    “Washington Trust had a strong fourth quarter performance, contributing to record net income for the fourth quarter and for the year 2011,” stated Joseph J. MarcAurele, Washington Trust Chairman, President and CEO. “We surpassed $3 billion in assets for the first time in the Corporation’s 211-year history, and saw growth along all business lines. Washington Trust’s continued profitability in these challenging times is a testament to our Corporation’s solid foundation and reputation.”

    Selected financial highlights for the fourth quarter included:

    • Total loans increased by $59 million, or 3%, during the fourth quarter of 2011, led by growth in the commercial loan portfolio.
    • Total deposits increased by $40 million, or 2%, from the end of the third quarter, reflecting growth in lower cost deposits.
    • Net interest income for the fourth quarter of 2011 was up by 2% from the previous quarter end and by 9% from the fourth quarter of 2010.
    • Due to continued strong mortgage refinancing and sales activity, mortgage banking revenues totaled $2.9 million for the fourth quarter, up from $1.1 million for the third quarter of 2011 and $2.2 million from the fourth quarter of 2010.
    • The provision for loan losses was $1.0 million in the fourth quarter of 2011, unchanged from the previous quarter and down by $500 thousand from the fourth quarter of 2010.
    • In December 2011, Washington Trust made a contribution of appreciated equity securities to its charitable foundation. The cost of this contribution was $990 thousand and was included in noninterest expenses. This contribution also resulted in a realized gain of $331 thousand on the disposition of the equity security. The combined effect of this transaction was a net after-tax charge to earnings of $305 thousand, or 2 cents per diluted share.
    • A modest balance sheet management transaction was conducted in December 2011 that included the sale of $4.0 million in mortgage-backed securities and prepayment of $4.0 million Federal Home Loan Bank of Boston (“FHLBB”) advances. The transaction resulted in net realized gains on securities of $142 thousand and $473 thousand of debt prepayment penalty expense. The combined effect of this transaction was a net after-tax charge to earnings of $213 thousand, or 1 cent per diluted share.
    • Nonperforming assets amounted to $24.8 million, or 0.81% of total assets, at December 31, 2011, compared to $24.6 million, or 0.83% of total assets, at September 30, 2011.

    Net Interest Income

    Net interest income of $22.0 million for the fourth quarter of 2011 increased by 2% on a linked quarter basis and by 9% from the fourth quarter a year ago due to the continued reduction in cost of funds, primarily FHLBB advances and time deposits. Net interest margin for the fourth quarter of 2011 was 3.22%, level with the third quarter of 2011 and up from 3.05% for the fourth quarter of 2010.

    Noninterest Income

    Noninterest income totaled $14.8 million for the fourth quarter of 2011, up by $1.9 million on a linked quarter basis and by $1.4 million from the fourth quarter of 2010, largely due to growth in mortgage banking revenues.

    Net gains on loan sales and commissions on loans originated for others increased by $1.9 million and $772 thousand, respectively, compared to the third quarter of 2011 and fourth quarter of 2010. This reflected the high volume of residential mortgage loan refinancing and sales activity during the quarter.

    Revenue from wealth management services, our largest source of noninterest income, is largely dependent on the value of wealth management assets under administration and is closely tied to the performance of the financial markets. Wealth management revenues for the fourth quarter of 2011 totaled $6.9 million, up by $134 thousand, or 2%, on a linked quarter basis and by $87 thousand, or 1%, over the fourth quarter of 2010. Wealth management assets under administration totaled $3.9 billion at December 31, 2011, up by $171 million, or 5%, from September 30, 2011.

    Noninterest Expenses

    Noninterest expenses totaled $24.8 million for the fourth quarter of 2011, up by $2.2 million and $3.0 million, respectively, from the third quarter of 2011 and fourth quarter of 2010. As described previously, during the fourth quarter of 2011, the Corporation made a $990 thousand contribution to its charitable foundation and also incurred a $473 thousand debt prepayment penalty. Fourth quarter 2010 noninterest expense also included a charitable foundation contribution of $350 thousand.

    Excluding the impact of the charitable contributions and debt prepayment penalty, the linked quarter and year over year quarter increase in noninterest expenses was primarily due to an increase in salaries and employee benefits,which were up by $1.0 million, or 8%, on a linked quarter basis and $1.8 million, or 15%, compared to the fourth quarter of 2010. This increase reflected higher staffing levels in mortgage banking, other selected staffing additions and higher amounts of commissions paid to mortgage originators.

    Income tax expense amounted to $3.3 million for the fourth quarter of 2011, essentially unchanged from the third quarter of 2011 and up from $3.2 million for the fourth quarter in 2010. The effective tax rate was 29.7% for the fourth quarter, compared to 30.5% for the previous quarter and 30.4% for the fourth quarter of 2010. Based on the current status of federal and applicable state income tax statutes, the Corporation currently expects the 2012 effective tax rate to be approximately 31.1%.

    Asset Quality

    Nonperforming assets (nonaccrual loans, nonaccrual investment securities and property acquired through foreclosure or repossession) remain at a level which we believe to be manageable, amounting to $24.8 million, or 0.81% of total assets, at December 31, 2011, compared to $24.6 million, or 0.83% of total assets, at September 30, 2011 and $23.0 million, or 0.79% of total assets, at December 31, 2010.

    At December 31, 2011, total past due loans amounted to $26.3 million, or 1.22% of total loans, up by $4.3 million from the third quarter of 2011, reflecting net increases of $2.7 million in past due commercial loans and $1.6 million in past due residential real estate loans. Included in the change in commercial loans was one loan totaling $1.7 million.

    At December 31, 2011, loans classified as troubled debt restructurings totaled $19.6 million, up by $4.1 million from the balance at September 30, 2011, primarily reflecting the restructuring and pay down of an accruing commercial loan relationship from $9.7 million to $4.7 million, secured by real estate and marketable securities.

    The loan loss provision charged to earnings amounted to $1.0 million for the fourth quarter of 2011, level with the third quarter of 2011 and down by $500 thousand from the fourth quarter of 2010. Net charge-offs amounted to $839 thousand in the fourth quarter of 2011, compared to net charge-offs of $712 thousand in the third quarter of 2011 and $1.1 million in the fourth quarter of 2010.

    Loans

    Total loans increased by $59 million, or 3%, in the fourth quarter of 2011 due to strong growth in the commercial portfolio, which increased by $54 million. For the year, total loans were up by $152 million, or 8%, with an increase of $98 million in the commercial loan portfolio and $55 million in the residential real estate portfolio.

    Investment Securities

    The investment securities portfolio amounted to $593 million at December 31, 2011, up by $12 million from the balance at September 30, 2011 and essentially unchanged from the balance at December 31, 2010.

    Deposits and Borrowings

    Deposits totaled $2.1 billion at December 31, 2011, up by $40 million, or 2%, from the balance at September 30, 2011. This primarily reflects increases in money market, demand and NOW accounts, offset, in part, by declines in time deposits. Total deposits have increased by $90 million, or 4%, from the balance at December 31, 2010, including a $111 million, or 49%, increase in demand deposits.

    FHLBB advances totaled $540 million at December 31, 2011, up by $46 million from September 30, 2011 and $42 million from December 31, 2010.

    Capital Management

    Capital levels remain above the regulatory minimums to be considered well capitalized, with total risk-based capital ratio of 12.86% at December 31, 2011, compared to 12.79% at December 31, 2010.

    Total shareholder's equity amounted to $281 million at December 31, 2011, down by $4 million from September 30, 2011 and up by $12 million from the balance at December 31, 2010. A charge of $7.0 million to the accumulated other comprehensive income component of shareholders' equity was recorded at December 31, 2011, associated with the periodic remeasurement of the value of defined benefit pension liabilities. This charge was largely due to a decline in the discount rates used to measure the present value of pension liabilities as a result of a reduction in market rates of interest.

    Expansion Plans

    Washington Trust plans to open a new mortgage production office in Warwick, Rhode Island in the first quarter of 2012.

    Dividends Declared

    The Board of Directors declared a quarterly dividend of 22 cents per share for the quarter ended December 31, 2011. The dividend was paid on January 13, 2012 to shareholders of record on January 3, 2012.

    Conference Call

    Washington Trust will host a conference call on Thursday, January 26, 2012 at 8:30 a.m. Eastern Time to discuss fourth quarter results. This call is being webcast and can be accessed through the Investor Relations section of the Washington Trust web site, www.washtrust.com. Individuals may dial in to the call at 1-877-317-6789. The international dial-in number is 1-412-317-6789. A replay of the call will be posted in this same location on the web site shortly after the conclusion of the call. To listen to a replay of the conference call, dial 1-877-344-7529. For international access, dial 1-412-317-0088. The Conference Number for replay is 10008545. The replay will be available until 9:00 a.m. on February 8, 2012.

    Background

    Washington Trust Bancorp, Inc. is the parent of The Washington Trust Company, a Rhode Island state-chartered bank founded in 1800. Washington Trust offers personal banking, business banking and wealth management services through its offices in Rhode Island, Massachusetts and Connecticut. Washington Trust Bancorp, Inc.'s common stock trades on the NASDAQ Global Select Market under the symbol “WASH.” Investor information is available on the Corporation's web site: www.washtrust.com.

    Forward-Looking Statements

    This press release contains certain statements that are “forward-looking statements”. We may also make written or oral 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 the control of Washington Trust. These risks, uncertainties and other factors may cause the actual results, performance or achievements of Washington Trust 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, changes in general national, regional or international economic conditions or conditions affecting the banking or financial services industries or financial capital markets, volatility and disruption in national and international financial markets, government intervention in the U.S. financial system, 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 of wealth management assets under administration, changes in the value of securities and other assets, reductions in loan demand, changes in loan collectibility, default and charge-off rates, changes in the size and nature of Washington Trust's competition, changes in legislation or regulation and accounting principles, policies and guidelines such as the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, 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, 2010, as filed with the Securities and Exchange Commission and as updated by our Quarterly Reports on Form 10-Q, 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 press release, and Washington Trust assumes 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.

     
    Washington Trust Bancorp, Inc. and Subsidiaries
    CONSOLIDATED BALANCE SHEETS (unaudited)
     
       
    (Dollars in thousands, except par value)   Dec 31,
    2011
      Dec 31,
    2010
    Assets:
    Cash and due from banks $ 82,238 $ 85,971
    Other short-term investments 4,782 6,765
    Mortgage loans held for sale; amortized cost $19,624 in 2011 20,340 13,894
    Securities:
    Available for sale, at fair value; amortized cost $524,036 in 2011 and $578,897 in 2010 541,253 594,100
    Held to maturity, at cost; fair value $52,499 in 2011   52,139    
    Total Securities 593,392 594,100
    Federal Home Loan Bank stock, at cost 42,008 42,008
    Loans:
    Commercial and other 1,124,628 1,027,065
    Residential real estate 700,414 645,020
    Consumer   322,117     323,553
    Total loans 2,147,159 1,995,638
    Less allowance for loan losses   29,802     28,583
    Net loans 2,117,357 1,967,055
    Premises and equipment, net 26,028 26,069
    Investment in bank-owned life insurance 53,783 51,844
    Goodwill 58,114 58,114
    Identifiable intangible assets, net 6,901 7,852
    Other assets   59,155     55,853
    Total assets   $ 3,064,098     $ 2,909,525
    Liabilities:
    Deposits:
    Demand deposits $ 339,809 $ 228,437
    NOW accounts 257,031 241,974
    Money market accounts 406,777 396,455
    Savings accounts 243,904 220,888
    Time deposits   878,794     948,576
    Total deposits 2,126,315 2,036,330
    Federal Home Loan Bank advances 540,450 498,722
    Junior subordinated debentures 32,991 32,991
    Other borrowings 19,758 23,359
    Other liabilities   63,233     49,259
    Total liabilities   2,782,747     2,640,661
    Shareholders’ Equity:

    Common stock of $.0625 par value; authorized 30,000,000 shares; issue 16,292,471 shares in 2011 and 16,171,618 shares in 2010

    1,018 1,011
    Paid-in capital 88,030 84,889
    Retained earnings 194,198 178,939
    Accumulated other comprehensive (loss) income   (1,895 )   4,025
    Total shareholders’ equity   281,351     268,864
    Total liabilities and shareholders’ equity   $ 3,064,098     $ 2,909,525
     
     
    Washington Trust Bancorp, Inc. and Subsidiaries
    CONSOLIDATED STATEMENTS OF INCOME (unaudited)
           
    (Dollars and shares in thousands, except per share amounts) Three Months Twelve Months
    Periods ended December 31,   2011   2010   2011   2010
    Interest income:
    Interest and fees on loans $ 25,284 $ 24,846 $ 99,319 $ 98,070
    Interest on securities:
    Taxable 4,422 4,709 18,704 21,824
    Nontaxable 729 769 3,002 3,077
    Dividends on corporate stock and Federal Home Loan Bank stock 55 34 252 198
    Other interest income   17     26     69     85  
    Total interest income   30,507     30,384     121,346     123,254  
    Interest expense:
    Deposits 3,652 4,465 15,692 20,312
    Federal Home Loan Bank advances 4,202 4,993 18,158 22,786
    Junior subordinated debentures 393 428 1,568 1,989
    Other interest expense   245     245     973     976  
    Total interest expense   8,492     10,131     36,391     46,063  
    Net interest income 22,015 20,253 84,955 77,191
    Provision for loan losses   1,000     1,500     4,700     6,000  
    Net interest income after provision for loan losses   21,015     18,753     80,255     71,191  
    Noninterest income:
    Wealth management services:
    Trust and investment advisory fees 5,487 5,448 22,532 20,670
    Mutual fund fees 994 1,124 4,287 4,423
    Financial planning, commissions and other service fees   444     266     1,487     1,299  
    Wealth management services 6,925 6,838 28,306 26,392
    Service charges on deposit accounts 793 921 3,455 3,587
    Merchant processing fees 2,056 2,094 9,905 9,156
    Card interchange fees 584 592 2,249 1,975
    Income from bank-owned life insurance 493 488 1,939 1,887
    Net gains on loan sales and commissions on loans originated for others 2,935 2,163 5,074 4,052
    Net realized gains (losses) on securities 501 (8 ) 698 729
    Net gains (losses) on interest rate swap contracts 12 77 6 (36 )
    Equity in gains (losses) of unconsolidated subsidiaries 220 (140 ) (213 ) (337 )
    Other income   307     383     1,536     1,485  
    Noninterest income, excluding other-than-temporary impairment losses 14,826 13,408 52,955 48,890
    Total other-than-temporary impairment losses on securities (54 ) (245 )
    Portion of loss recognized in other comprehensive income (before taxes)           (137 )   (172 )
    Net impairment losses recognized in earnings           (191 )   (417 )
    Total noninterest income   14,826     13,408     52,764     48,473  
    Noninterest expense:
    Salaries and employee benefits 13,957 12,135 51,095 47,429
    Net occupancy 1,376 1,188 5,295 4,851
    Equipment 1,133 1,051 4,344 4,099
    Merchant processing costs 1,765 1,802 8,560 7,822
    Outsourced services 920 840 3,530 3,304
    FDIC deposit insurance costs 429 724 2,043 3,163
    Legal, audit and professional fees 538 449 1,927 1,813
    Advertising and promotion 478 383 1,819 1,633
    Amortization of intangibles 246 237 951 1,091
    Foreclosed property costs 329 515 878 841
    Debt prepayment penalties 473 694 752
    Other expenses   3,130     2,472     9,237     8,513  
    Total noninterest expense   24,774     21,796     90,373     85,311  
    Income before income taxes 11,067 10,365 42,646 34,353
    Income tax expense   3,290     3,154     12,922     10,302  
    Net income   $ 7,777     $ 7,211     $ 29,724     $ 24,051  
     
    Weighted average common shares outstanding - basic 16,288.1 16,160.6 16,254.0 16,113.9
    Weighted average common shares outstanding - diluted 16,326.5 16,182.7 16,283.9 16,122.5
    Per share information: Basic earnings per common share $ 0.48 $ 0.44 $ 1.82 $ 1.49
    Diluted earnings per common share $ 0.47 $ 0.44 $ 1.82 $ 1.49
    Cash dividends declared per share $ 0.22 $ 0.21 $ 0.88 $ 0.84
     
     
    Washington Trust Bancorp, Inc. and Subsidiaries
    SELECTED FINANCIAL HIGHLIGHTS (unaudited)
             
    At or for the Quarters Ended
    (Dollars and shares in thousands, except per share amounts)   Dec 31,
    2011
      Sep 30,
    2011
      Jun 30,
    2011
      Mar 31,
    2011
      Dec 31,
    2010
    Financial Data:
    Total assets $ 3,064,098 $ 2,969,613 $ 2,936,306 $ 2,892,272 $ 2,909,525
    Total loans 2,147,159 2,087,759 2,057,152 2,029,637 1,995,638
    Total securities 593,392 581,543 591,580 576,158 594,100
    Total deposits 2,126,315 2,086,150 1,996,043 2,048,846 2,036,330
    Total shareholders' equity 281,351 285,494 281,425 273,885 268,864
    Net interest income 22,015 21,549 21,064 20,327 20,253
    Provision for loan losses 1,000 1,000 1,200 1,500 1,500
    Noninterest income, excluding OTTI losses 14,826 13,114 13,285 11,730 13,408
    Net OTTI losses recognized in earnings (158 ) (33 )
    Noninterest expenses 24,774 22,595 22,264 20,740 21,796
    Income tax expense 3,290 3,328 3,320 2,984 3,154
    Net income 7,777 7,582 7,565 6,800 7,211
     
    Share Data:
    Basic earnings per common share $ 0.48 $ 0.46 $ 0.46 $ 0.42 $ 0.44
    Diluted earnings per common share $ 0.47 $ 0.46 $ 0.46 $ 0.42 $ 0.44
    Dividends declared per share $ 0.22 $ 0.22 $ 0.22 $ 0.22 $ 0.21
    Book value per share $ 17.27 $ 17.54 $ 17.30 $ 16.87 $ 16.63
    Tangible book value per share - Non-GAAP (1) $ 13.28 $ 13.53 $ 13.27 $ 12.82 $ 12.55
    Market value per share $ 23.86 $ 19.78 $ 22.97 $ 23.74 $ 21.88
     
    Shares outstanding at end of period 16,292.5 16,279.5 16,266.5 16,233.6 16,171.6
    Weighted average common shares outstanding-basic 16,288.1 16,277.8 16,251.6 16,197.2 16,160.6
    Weighted average common shares outstanding-diluted 16,326.5 16,293.7 16,284.3 16,229.8 16,182.7
     
    Key Ratios:
    Return on average assets 1.04 % 1.03 % 1.04 % 0.94 % 0.99 %
    Return on average tangible assets - Non-GAAP (1) 1.07 % 1.06 % 1.07 % 0.96 % 1.01 %
    Return on average equity 10.89 % 10.67 % 10.83 % 10.04 % 10.70 %
    Return on average tangible equity - Non-GAAP (1) 14.10 % 13.86 % 14.16 % 13.26 % 14.17 %
     
    Capital Ratios:
    Tier 1 risk-based capital 11.61% (i) 11.73 % 11.72 % 11.65 % 11.53 %
    Total risk-based capital 12.86% (i) 12.99 % 12.98 % 12.92 % 12.79 %
    Tier 1 leverage ratio 8.70% (i) 8.69 % 8.61 % 8.49 % 8.25 %
    Equity to assets 9.18 % 9.61 % 9.58 % 9.47 % 9.24 %
    Tangible equity to tangible assets - Non-GAAP (1) 7.21 % 7.58 % 7.52 % 7.36 % 7.14 %
    (i) - estimated
     
    Wealth Management Assets under
    Administration:
    Balance at beginning of period $ 3,728,837 $ 4,148,433 $ 4,119,207 $ 3,967,207 $ 3,744,632
    Net investment appreciation (depreciation) & income 215,449 (374,961 ) 1,625 145,563 227,168
    Net client cash flows (36,815 ) (44,635 ) 27,601 6,437 (4,593 )

    Other (2)

      (7,410 )                
    Balance at end of period   $ 3,900,061     $ 3,728,837     $ 4,148,433     $ 4,119,207     $ 3,967,207  
     

    (1) See the section labeled “Supplemental Information - Non-GAAP Financial Measures” at the end of this document.
    (2) Represents declassifications of largely low-fee paying assets from assets under administration due to a change in the nature of client relationships, regarding the scope and/or frequency of services provided by Washington Trust. The impact of this change on wealth management revenues was minimal.

     
    Washington Trust Bancorp, Inc. and Subsidiaries
    SELECTED FINANCIAL HIGHLIGHTS (unaudited)
       
    Twelve Months Ended
    (Dollars and shares in thousands, except per share amounts)   Dec 31,
    2011
      Dec 31,
    2010
    Financial Data:
    Net interest income $ 84,955 $ 77,191
    Provision for loan losses 4,700 6,000
    Noninterest income, excluding OTTI losses 52,955 48,890
    Net OTTI losses recognized in earnings (191 ) (417 )
    Noninterest expenses 90,373 85,311
    Income tax expense 12,922 10,302
    Net income 29,724 24,051
     
    Share Data:
    Basic earnings per common share $ 1.82 $ 1.49
    Diluted earnings per common share $ 1.82 $ 1.49
    Dividends declared per share $ 0.88 $ 0.84
     
    Weighted average common shares outstanding - basic 16,254.0 16,113.9
    Weighted average common shares outstanding - diluted 16,283.9 16,122.5
     
    Key Ratios:
    Return on average assets 1.02 % 0.82 %
    Return on average tangible assets - Non-GAAP (1) 1.04 % 0.84 %
    Return on average equity 10.61 % 9.09 %
    Return on average tangible equity - Non-GAAP (1) 13.85 % 12.13 %
     
    Asset Quality Data:
    Allowance for Loan Losses:
    Balance at beginning of period $ 28,583 $ 27,400
    Provision charged to earnings 4,700 6,000
    Charge-offs (3,834 ) (5,402 )
    Recoveries   353     585  
    Balance at end of period   $ 29,802     $ 28,583  
     
    Net Loan Charge-Offs:
    Commercial: Mortgages $ 953 $ 1,152
    Construction and development
    Other 1,374 2,787
    Residential: Mortgages 637 413
    Homeowner construction
    Consumer   517     465  
    Total   $ 3,481     $ 4,817  
     
    Net charge-offs to average loans (annualized) 0.17 % 0.24 %
     
    Wealth Management Assets Under Administration:
    Balance at beginning of period $ 3,967,207 $ 3,735,646
    Net investment (depreciation) appreciation & income (12,324 ) 318,985
    Net client cash flows (47,412 ) 18,345
    Other (2)   (7,410 )   (105,769 )
    Balance at end of period   $ 3,900,061     $ 3,967,207  
     

    (1) See the section labeled “Supplemental Information - Non-GAAP Financial Measures” at the end of this document.
    (2) Represents declassifications of largely low-fee paying assets from assets under administration due to a change in the nature of client relationships, regarding the scope and/or frequency of services provided by Washington Trust. The impact of this change on wealth management revenues was minimal.

     
    Washington Trust Bancorp, Inc. and Subsidiaries
    SELECTED FINANCIAL HIGHLIGHTS (unaudited)
             
    For the Quarters Ended
        Dec 31,
    2011
      Sep 30,
    2011
      Jun 30,
    2011
      Mar 31,
    2011
      Dec 31,
    2010
    Average Yield / Rate (taxable equivalent basis):
    Assets:
    Commercial and other loans 5.19 % 5.22 % 5.23 % 5.28 % 5.22 %
    Residential real estate loans, including mortgage loans held for sale 4.46 % 4.58 % 4.72 % 4.79 % 4.76 %
    Consumer loans 3.87 % 3.90 % 3.91 % 3.93 % 3.96 %
    Total loans 4.74 % 4.80 % 4.86 % 4.91 % 4.87 %
    Cash, federal funds sold and other short-term investments 0.19 % 0.20 % 0.15 % 0.22 % 0.21 %
    FHLBB stock 0.30 % 0.26 % 0.31 % 0.31 % %
    Taxable debt securities 3.58 % 3.78 % 4.01 % 3.93 % 3.79 %
    Nontaxable debt securities 5.82 % 5.82 % 5.88 % 5.95 % 5.76 %
    Corporate stocks 5.89 % 7.58 % 7.50 % 8.07 % 7.42 %
    Total securities 3.88 % 4.07 % 4.28 % 4.23 % 4.08 %
    Total interest-earning assets 4.44 % 4.53 % 4.61 % 4.61 % 4.54 %
    Liabilities:
    NOW accounts 0.10 % 0.10 % 0.10 % 0.10 % 0.12 %
    Money market accounts 0.24 % 0.25 % 0.25 % 0.33 % 0.34 %
    Savings accounts 0.12 % 0.12 % 0.12 % 0.14 % 0.14 %
    Time deposits 1.45 % 1.48 % 1.57 % 1.61 % 1.65 %
    FHLBB advances 3.44 % 3.49 % 3.80 % 4.04 % 4.13 %
    Junior subordinated debentures 4.73 % 4.73 % 4.77 % 4.79 % 5.15 %
    Other 4.59 % 4.50 % 4.48 % 4.23 % 4.43 %
    Total interest-bearing liabilities 1.45 % 1.53 % 1.61 % 1.67 % 1.70 %
     
    Interest rate spread (taxable equivalent basis) 2.99 % 3.00 % 3.00 % 2.94 % 2.84 %
    Net interest margin (taxable equivalent basis) 3.22 % 3.22 % 3.21 % 3.16 % 3.05 %
     
     

     

    At December 31, 2011
    Amortized   Unrealized   Unrealized   Fair
    (Dollars in thousands)   Cost (1)   Gains   Losses   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
    Common stocks
    Perpetual preferred stocks   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 recognized in earnings.

     
    Washington Trust Bancorp, Inc. and Subsidiaries
    SELECTED FINANCIAL HIGHLIGHTS (unaudited)
             
    Period End Balances At
    (Dollars in thousands)   Dec 31,
    2011
      Sep 30,
    2011
      Jun 30,
    2011
      Mar 31,
    2011
      Dec 31,
    2010
    Loans:
    Commercial: Mortgages $ 624,813 $ 573,355 $ 562,976 $ 551,069 $ 518,623
    Construction & development 10,955 18,518 19,448 34,615 47,335
      Other   488,860     478,652     491,071     470,704     461,107
    Total commercial 1,124,628 1,070,525 1,073,495 1,056,388 1,027,065
    Residential real estate: Mortgages 678,582 674,242 644,210 636,916 634,739
      Homeowner construction   21,832     17,226     14,137     12,241     10,281
    Total residential real estate 700,414 691,468 658,347 649,157 645,020
    Consumer: Home equity lines 223,430 222,886 223,284 221,003 218,288
    Home equity loans 43,121 45,354 46,797 48,337 50,624
      Other   55,566     57,526     55,229     54,752     54,641
      Total consumer   322,117     325,766     325,310     324,092     323,553
      Total loans   $ 2,147,159     $ 2,087,759     $ 2,057,152     $ 2,029,637     $ 1,995,638
     
      At December 31, 2011
    (Dollars in thousands)   Balance   % of Total
    Commercial Real Estate Loans by Property Location:  
    Rhode Island, Connecticut, Massachusetts $ 589,083 92.7 %
    New York, New Jersey, Pennsylvania 33,317 5.2 %
    New Hampshire 11,668 1.8 %
    Other   1,700     0.3 %
    Total commercial real estate loans (1)   $ 635,768     100.0 %
     

    (1) Commercial real estate loans consist of commercial mortgages and construction and development loans. Commercial mortgages are loans secured by income producing property.

     
    At December 31, 2011
    (Dollars in thousands)   Balance   % of Total
    Residential Mortgages by Property Location:  
    Rhode Island, Connecticut, Massachusetts $ 675,935 96.5 %
    New York, Virginia, New Jersey, Maryland, Pennsylvania, District of Columbia 11,499 1.6 %
    Ohio 5,665 0.8 %
    California, Washington, Oregon 1,881 0.3 %
    Colorado, New Mexico 1,079 0.2 %
    Georgia 1,118 0.2 %
    New Hampshire 2,767 0.4 %
    Wyoming   470     %
    Total residential mortgages   $ 700,414     100.0 %
     
    Period End Balances At
    (Dollars in thousands)   Dec 31,
    2011
      Sep 30,
    2011
      Jun 30,
    2011
      Mar 31,
    2011
      Dec 31,
    2010
    Deposits:        
    Demand deposits $ 339,809 $ 319,203 $ 261,016 $ 274,798 $ 228,437
    NOW accounts 257,031 242,372 236,162 228,502 241,974
    Money market accounts 406,777 374,324 355,096 387,923 396,455
    Savings accounts 243,904 239,356 227,014 223,599 220,888
    Time deposits   878,794     910,895     916,755     934,024     948,576
    Total deposits   $ 2,126,315     $ 2,086,150     $ 1,996,043     $ 2,048,846     $ 2,036,330
     

    Out-of-market brokered certificates of deposits included in time deposits

    $ 90,073 $ 85,250 $ 85,659 $ 51,778 $ 52,347

    In-market deposits, excluding out of market brokered certificates of deposit

    $ 2,036,242 $ 2,000,900 $ 1,910,384 $ 1,997,068 $ 1,983,983
     
     
    Washington Trust Bancorp, Inc. and Subsidiaries
    SELECTED FINANCIAL HIGHLIGHTS (unaudited)
             
    Period End Balances At
    (Dollars in thousands)   Dec 31,
    2011
      Sep 30,
    2011
      Jun 30,
    2011
      Mar 31,
    2011
      Dec 31,
    2010
    Asset Quality Data:
    Nonperforming Assets:
    Commercial mortgages $ 5,709 $ 6,367 $ 7,476 $ 6,068 $ 6,624
    Commercial construction and development
    Other commercial 3,708 2,745 3,152 4,445 5,259
    Residential real estate mortgages 10,614 11,352 9,570 8,265 6,414
    Consumer   1,206     1,126     780     601     213  
    Total nonaccrual loans $ 21,237 $ 21,590 $ 20,978 $ 19,379 $ 18,510
    Nonaccrual investment securities 887 796 934 752 806
    Property acquired through foreclosure or repossession   2,647     2,201     2,189     2,163     3,644  
    Total nonperforming assets   $ 24,771     $ 24,587     $ 24,101     $ 22,294     $ 22,960  
     
    Total past due loans to total loans 1.22 % 1.05 % 1.19 % 1.34 % 1.27 %
    Nonperforming assets to total assets 0.81 % 0.83 % 0.82 % 0.77 % 0.79 %
    Nonaccrual loans to total loans 0.99 % 1.03 % 1.02 % 0.95 % 0.93 %
    Allowance for loan losses to nonaccrual loans 140.33 % 137.29 % 139.92 % 150.21 % 154.42 %
    Allowance for loan losses to total loans 1.39 % 1.42 % 1.43 % 1.43 % 1.43 %
     
    Troubled Debt Restructured Loans:
    Accruing troubled debt restructured loans
    Commercial mortgages $ 6,389 $ 5,861 $ 6,552 $ 10,071 $ 11,736
    Other commercial 6,625 4,059 4,026 4,554 4,594
    Residential real estate mortgages 1,481 1,158 2,279 2,724 2,863
    Consumer   171     174     317     417     509  
    Accruing troubled debt restructured loans   14,666     11,252     13,174     17,766     19,702  
    Nonaccrual troubled debt restructured loans
    Commercial mortgages 91 1,209 2,555 826 1,302
    Other commercial 2,154 292 455 526 431
    Residential real estate mortgages 2,615 2,686 2,303 1,785 948
    Consumer   106     129     131     199     41  
    Nonaccrual troubled debt restructured loans   4,966     4,316     5,444     3,336     2,722  
    Total troubled debt restructured loans   $ 19,632     $ 15,568     $ 18,618     $ 21,102     $ 22,424  
     
     
    Washington Trust Bancorp, Inc. and Subsidiaries
    SELECTED FINANCIAL HIGHLIGHTS (unaudited)
             
    Period End Balances At
    (Dollars in thousands)   Dec 31,
    2011
      Sep 30,
    2011
      Jun 30,
    2011
      Mar 31,
    2011
      Dec 31,
    2010
    Past Due Loans:
    Loans 30-59 Days Past Due
    Commercial mortgages $ 1,621 $ 874 $ 1,507 $ 3,223 $ 2,185
    Other commercial loans 3,760 1,629 1,783 2,474 1,862
    Residential real estate mortgages 3,969 2,145 3,355 2,986 3,073
    Consumer loans   1,073     1,100     1,979     1,735     2,005
    Loans 30-59 days past due   $ 10,423     $ 5,748     $ 8,624     $ 10,418     $ 9,125
     
    Loans 60-89 Days Past Due
    Commercial mortgages $ 315 $ 328 $ 1,013 $ 1,626 $ 514
    Other commercial loans 982 103 80 315 953
    Residential real estate mortgages 1,505 206 992 1,345 1,477
    Consumer loans   263     420     120     335     448
    Loans 60-89 days past due   $ 3,065     $ 1,057     $ 2,205     $ 3,621     $ 3,392
     
    Loans 90 Days or more Past Due
    Commercial mortgages $ 4,995 $ 5,510 $ 5,553 $ 5,242 $ 5,322
    Other commercial loans 633 1,209 1,378 2,524 3,376
    Residential real estate mortgages 6,283 7,826 6,549 5,165 4,041
    Consumer loans   874     649     245     317     11
    Loans 90 days or more past due   $ 12,785     $ 15,194     $ 13,725     $ 13,248     $ 12,750
     
    Total Past Due Loans
    Commercial mortgages $ 6,931 $ 6,712 $ 8,073 $ 10,091 $ 8,021
    Other commercial loans 5,375 2,941 3,241 5,313 6,191
    Residential real estate mortgages 11,757 10,177 10,896 9,496 8,591
    Consumer loans   2,210     2,169     2,344     2,387     2,464
    Total past due loans   $ 26,273     $ 21,999     $ 24,554     $ 27,287     $ 25,267
     
    Nonaccrual loans included in past due loans $ 17,588 $ 16,585 $ 16,705 $ 16,456 $ 14,894
     
     
    For the Quarters Ended
    (Dollars in thousands)   Dec 31,
    2011
      Sep 30,
    2011
      Jun 30,
    2011
      Mar 31,
    2011
      Dec 31,
    2010
    Allowance for Loan Losses:        
    Balance at beginning of period $ 29,641 $ 29,353 $ 29,109 $ 28,583 $ 28,165
    Provision charged to earnings 1,000 1,000 1,200 1,500 1,500
    Charge-offs (920 ) (818 ) (1,044 ) (1,052 ) (1,396 )
    Recoveries   81     106     88     78     314  
    Balance at end of period   $ 29,802     $ 29,641     $ 29,353     $ 29,109     $ 28,583  
     
    Net Loan Charge-Offs (Recoveries):
    Commercial mortgages $ 249 $ 249 $ 122 $ 333 $ 226
    Other commercial 39 286 541 508 695
    Residential real estate mortgages 273 100 146 118 (99 )
    Consumer   278     77     147     15     260  
    Total   $ 839     $ 712     $ 956     $ 974     $ 1,082  
     

    The following tables present 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. For dividends on corporate stocks, the 70% federal dividends received deduction is also used in the calculation of tax equivalency. Unrealized gains (losses) on available for sale securities are excluded from the average balance and yield calculations. Nonaccrual and renegotiated loans, as well as interest earned on these loans (to the extent recognized in the Consolidated Statements of Income) are included in amounts presented for loans.

     
    Washington Trust Bancorp, Inc. and Subsidiaries
    CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited)
               
    Three months ended December 31,   2011   2010
    Average Yield/ Average Yield/
    (Dollars in thousands)   Balance   Interest   Rate   Balance   Interest   Rate
    Assets:
    Commercial and other loans $ 1,082,834 $ 14,159 5.19 % $ 1,044,263 $ 13,741 5.22 %

    Residential real estate loans, including mortgage loans held for sale

    717,250 8,065 4.46 % 661,108 7,936 4.76 %
    Consumer loans   323,339     3,155     3.87 %   324,703     3,239     3.96 %
    Total loans 2,123,423 25,379 4.74 % 2,030,074 24,916 4.87 %
    Cash, federal funds sold and other short-term investments 35,429 17 0.19 % 49,381 26 0.21 %
    FHLBB stock 42,008 32 0.30 % 42,008 %
     
    Taxable debt securities 490,589 4,422 3.58 % 492,684 4,709 3.79 %
    Nontaxable debt securities 75,352 1,105 5.82 % 79,457 1,154 5.76 %
    Corporate stocks   2,291     34     5.89 %   2,512     47     7.42 %
    Total securities   568,232     5,561     3.88 %   574,653     5,910     4.08 %
    Total interest-earning assets 2,769,092 30,989 4.44 % 2,696,116 30,852 4.54 %
    Non interest-earning assets   214,556             216,654          
    Total assets   $ 2,983,648             $ 2,912,770          
    Liabilities and Shareholders' Equity:
    NOW accounts $ 243,241 $ 63 0.10 % $ 245,857 $ 74 0.12 %
    Money market accounts 402,652 245 0.24 % 414,425 357 0.34 %
    Savings accounts 239,110 70 0.12 % 211,513 72 0.14 %
    Time deposits 897,535 3,274 1.45 % 951,545 3,962 1.65 %
    FHLBB advances 484,537 4,202 3.44 % 479,703 4,993 4.13 %
    Junior subordinated debentures 32,991 393 4.73 % 32,991 428 5.15 %
    Other   21,194     245     4.59 %   21,965     245     4.43 %
    Total interest-bearing liabilities 2,321,260 8,492 1.45 % 2,357,999 10,131 1.70 %
    Demand deposits 330,027 239,100
    Other liabilities 46,654 46,101
    Shareholders' equity   285,707             269,570          
    Total liabilities and shareholders' equity   $ 2,983,648             $ 2,912,770          
    Net interest income (FTE)       $ 22,497             $ 20,721      
     
    Interest rate spread 2.99 % 2.84 %
    Net interest margin 3.22 % 3.05 %
     
     

    Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:

     
    (Dollars in thousands)  
     
    Three months ended December 31,   2011   2010
    Commercial and other loans $ 95 $ 70
    Nontaxable debt securities 376 385
    Corporate stocks   11     13
    Total   $ 482     $ 468
     
     
    Washington Trust Bancorp, Inc. and Subsidiaries
    CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited)
               
    Years ended December 31,   2011   2010
    Average Yield/ Average Yield/
    (Dollars in thousands)   Balance   Interest   Rate   Balance   Interest   Rate
    Assets:
    Commercial and other loans $ 1,063,322 $ 55,592 5.23 % $ 1,019,304 $ 53,628 5.26 %

    Residential real estate loans, including mortgage loans held for sale

    678,697 31,447 4.63 % 634,735 31,609 4.98 %
    Consumer loans   324,002     12,649     3.90 %   327,770     13,062     3.99 %
    Total loans 2,066,021 99,688 4.83 % 1,981,809 98,299 4.96 %
    Cash, federal funds sold and other short-term investments 35,625 69 0.19 % 41,407 85 0.21 %
    FHLBB stock 42,008 124 0.30 % 42,008 %
     
    Taxable debt securities 489,210 18,704 3.82 % 553,531 21,824 3.94 %
    Nontaxable debt securities 77,634 4,555 5.87 % 79,491 4,618 5.81 %
    Corporate stocks   2,456     177     7.21 %   3,595     274     7.62 %
    Total securities   569,300     23,436     4.12 %   636,617     26,716     4.20 %
    Total interest-earning assets 2,712,954 123,317 4.55 % 2,701,841 125,100 4.63 %
    Non interest-earning assets   214,214             213,644          
    Total assets   $ 2,927,168             $ 2,915,485          
    Liabilities and Shareholders' Equity:
    NOW accounts $ 232,545 $ 242 0.10 % $ 220,875 $ 268 0.12 %
    Money market accounts 392,002 1,051 0.27 % 403,489 1,918 0.48 %
    Savings accounts 229,180 286 0.12 % 205,767 318 0.15 %
    Time deposits 925,064 14,113 1.53 % 955,222 17,808 1.86 %
    FHLBB advances 492,714 18,158 3.69 % 547,974 22,786 4.16 %
    Junior subordinated debentures 32,991 1,568 4.75 % 32,991 1,989 6.03 %
    Other   21,891     973     4.44 %   21,321     976     4.58 %
    Total interest-bearing liabilities 2,326,387 36,391 1.56 % 2,387,639 46,063 1.93 %
    Demand deposits 278,120 221,350
    Other liabilities 42,554 41,804
    Shareholders' equity   280,107             264,692          
    Total liabilities and shareholders' equity   $ 2,927,168             $ 2,915,485          
    Net interest income (FTE)       $ 86,926             $ 79,037      
     
    Interest rate spread 2.99 % 2.70 %
    Net interest margin 3.20 % 2.93 %
     
     

    Interest income amounts presented in the preceding table include the following adjustments for taxable equivalency:

     
    (Dollars in thousands)  
     
    Years ended December 31,   2011   2010
    Commercial and other loans $ 369 $ 229
    Nontaxable debt securities 1,553 1,541
    Corporate stocks   49     76
    Total   $ 1,971     $ 1,846
     
     
    Washington Trust Bancorp, Inc. and Subsidiaries
    SUPPLEMENTAL INFORMATION - Non-GAAP Financial Measures (unaudited)
             
    At or for the Quarters Ended
    (Dollars in thousands, except per share amounts)   Dec 31,
    2011
      Sep 30,
    2011
      Jun 30,
    2011
      Mar 31,
    2011
      Dec 31,
    2010
    Calculation of Tangible Book Value per Share:
    Total shareholders' equity at end of period $ 281,351 $ 285,494 $ 281,425 $ 273,885 $ 268,864
    Less:
    Goodwill 58,114 58,114 58,114 58,114 58,114
    Identifiable intangible assets, net   6,901     7,147     7,377     7,614     7,852  
    Total tangible shareholders' equity at end of period   $ 216,336     $ 220,233     $ 215,934     $ 208,157     $ 202,898  
     
    Shares outstanding at end of period   16,292.5     16,279.5     16,266.5     16,233.6     16,171.6  
     
    Book value per share - GAAP   $ 17.27     $ 17.54     $ 17.30     $ 16.87     $ 16.63  
    Tangible book value per share - Non-GAAP   $ 13.28     $ 13.53     $ 13.27     $ 12.82     $ 12.55  
     
    Calculation of Tangible Equity to Tangible Assets:
    Total tangible shareholders' equity at end of period   $ 216,336     $ 220,233     $ 215,934     $ 208,157     $ 202,898  
     
    Total assets at end of period $ 3,064,098 $ 2,969,613 $ 2,936,306 $ 2,892,272 $ 2,909,525
    Less:
    Goodwill 58,114 58,114 58,114 58,114 58,114
    Identifiable intangible assets, net   6,901     7,147     7,377     7,614     7,852  
    Total tangible assets at end of period   $ 2,999,083     $ 2,904,352     $ 2,870,815     $ 2,826,544     $ 2,843,559  
     
    Equity to assets - GAAP   9.18 %   9.61 %   9.58 %   9.47 %   9.24 %
    Tangible equity to tangible assets - Non-GAAP   7.21 %   7.58 %   7.52 %   7.36 %   7.14 %
     
    Calculation of Return on Average Tangible Assets:
    Net income   $ 7,777     $ 7,582     $ 7,564     $ 6,800     $ 7,211  
     
    Total average assets $ 2,983,648 $ 2,935,146 $ 2,904,086 $ 2,884,618 $ 2,912,770
    Less:
    Average goodwill 58,114 58,114 58,114 58,114 58,114
    Average identifiable intangible assets, net   7,025     7,257     7,493     7,730     7,967  
    Total average tangible assets   $ 2,918,509     $ 2,869,775     $ 2,838,479     $ 2,818,774     $ 2,846,689  
     
    Return on average assets - GAAP   1.04 %   1.03 %   1.04 %   0.94 %   0.99 %
    Return on average tangible assets - Non-GAAP   1.07 %   1.06 %   1.07 %   0.96 %   1.01 %
     
    Calculation of Return on Average Tangible Equity:
    Net income   $ 7,777     $ 7,582     $ 7,564     $ 6,800     $ 7,211  
     
    Total average shareholders' equity $ 285,707 $ 284,244 $ 279,281 $ 270,991 $ 269,570
    Less:
    Average goodwill 58,114 58,114 58,114 58,114 58,114
    Average identifiable intangible assets, net   7,025     7,257     7,493     7,730     7,967  
    Total average tangible shareholders' equity   $ 220,568     $ 218,873     $ 213,674     $ 205,147     $ 203,489  
     
    Return on average shareholders' equity - GAAP   10.89 %   10.67 %   10.83 %   10.04 %   10.70 %
    Return on average tangible shareholders' equity - Non-GAAP   14.10 %   13.86 %   14.16 %   13.26 %   14.17 %
     
     
    Washington Trust Bancorp, Inc. and Subsidiaries
    SUPPLEMENTAL INFORMATION - Non-GAAP Financial Measures (unaudited)
       
    Years Ended
    (Dollars in thousands)   Dec 31,
    2011
      Dec 31,
    2010
    Calculation of return on average tangible assets:
    Net income   $ 29,724     $ 24,051  
     
    Total average assets $ 2,927,168 $ 2,915,485
    Less:
    Average goodwill 58,114 58,114
    Average identifiable intangible assets, net   7,374     8,368  
    Total average tangible assets   $ 2,861,680     $ 2,849,003  
     
    Return on average assets - GAAP   1.02 %   0.82 %
    Return on average tangible assets - Non-GAAP   1.04 %   0.84 %
     
     
    Calculation of return on average tangible equity:
    Net income   $ 29,724     $ 24,051  
     
    Total average shareholders' equity $ 280,107 $ 264,692
    Less:
    Average goodwill 58,114 58,114
    Average identifiable intangible assets, net   7,374     8,368  
    Total average tangible shareholders' equity   $ 214,619     $ 198,210  
     
    Return on average shareholders' equity - GAAP   10.61 %   9.09 %
    Return on average tangible shareholders' equity - Non-GAAP   13.85 %   12.13 %

    Washington Trust Bancorp, Inc.
    Elizabeth B. Eckel, 401-348-1309
    Senior Vice President, Marketing
    ebeckel@washtrust.com

    Source: Washington Trust Bancorp, Inc.