• Washington Trust Bancorp, Inc.
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  • Washington Trust Announces Record Net Income and Diluted Earnings Per Share for First Quarter 2012
    Company Release - 04/23/2012 07:30

    WESTERLY, R.I.--(BUSINESS WIRE)-- Washington Trust Bancorp, Inc. (NASDAQ Global Select; symbol: WASH), parent company of The Washington Trust Company, today announced first quarter 2012 net income of $8.4 million, or 51 cents per diluted share, compared to fourth quarter 2011 net income of $7.8 million, or 47 cents per diluted share, and first quarter 2011 net income of $6.8 million, or 42 cents per diluted share. First quarter 2012 diluted earnings per share represented a 9% increase over the fourth quarter 2011 and a 21% increase over the first quarter of 2011. The returns on average equity and average assets for the first quarter of 2012 were 11.85% and 1.11%, respectively, compared to 10.04% and 0.94%, respectively, for the same period in 2011.

    “Washington Trust posted solid first quarter results, with net income up 24 percent over a year ago,” stated Joseph J. MarcAurele, Washington Trust Chairman, President and Chief Executive Office. “We are pleased with our performance, as we’ve been able to strategically grow the Corporation, despite continued economic challenges.”

    Selected financial highlights for the first quarter included:

    • Net interest margin increased to 3.27%, up five basis points from the fourth quarter of 2011, primarily due to reductions in the cost of time deposits and borrowings.
    • Mortgage banking revenues (net gains on loan sales and commissions on loans originated for others) reached an all time high at $3.1 million for the quarter. These results reflected continued origination volume growth in our residential mortgage lending offices.
    • Asset quality indicators showed noticeable improvement in the first quarter of 2012. The balances of nonperforming assets (nonaccrual loans, nonaccrual investment securities and property acquired through foreclosure or repossession), loan delinquencies and troubled debt restructurings all declined from December 31, 2011 to March 31, 2012.
    • The loan loss provision charged to earnings in the first quarter of 2012 was $900 thousand, the lowest quarterly provision since the first quarter of 2008.
    • Wealth management revenues were up 4% on a linked quarter basis. Wealth management assets under administration amounted to $4.2 billion at March 31, 2012.

    Net Interest Income

    Net interest income increased by 2% from the fourth quarter of 2011 due to the continued reduction in wholesale funding and time deposit costs. Compared to the first quarter of 2011, net interest income rose by $2.1 million, or 10%, reflecting the benefit of lower funding costs as well as a 7% increase in average loan balances. The net interest margin for the first quarter of 2012 was 3.27%, compared to 3.22% for the fourth quarter of 2011 and 3.16% for the first quarter of 2011.

    Noninterest Income

    Mortgage banking revenues, fueled by continued strong mortgage origination activity, totaled $3.1 million, up by $162 thousand from the previous quarter and up by $2.6 million from the first quarter of 2011. Washington Trust currently operates four mortgage lending offices in addition to its full-service branch locations.

    Wealth management revenues for the first quarter of 2012 were $7.2 million, an increase of $260 thousand on a linked quarter basis and $105 thousand compared to the first quarter of 2011. Wealth management assets under administration totaled $4.2 billion at March 31, 2012, up by $296.4 million, or 8%, from December 31, 2011.

    First quarter 2012 noninterest income included other-than-temporary impairment ("OTTI") losses on investment securities of $209 thousand, compared to OTTI losses of $33 thousand recorded in the first quarter of 2011. There were no OTTI losses recorded in the previous quarter.

    There were no net realized gains on sales of securities in the first quarter of 2012, compared to $501 thousand recorded in the fourth quarter of 2011 and net realized losses of $29 thousand recorded in the first quarter of 2011.

    Noninterest Expenses

    Noninterest expenses totaled $23.4 million for the first quarter of 2012. Fourth quarter 2011 noninterest expenses included a $990 thousand charitable contribution and debt prepayment charges of $473 thousand. Excluding the contribution and debt prepayment charges, noninterest expenses increased by $88 thousand from the fourth quarter of 2011. Compared to the first quarter of 2011, noninterest expenses increased by $2.7 million, including a $2.6 million increase in salaries and employee benefit costs. This increase reflected higher amounts of commissions paid to mortgage originators, higher staffing levels in support of mortgage origination and other business lines and higher defined benefit plan cost primarily due to a lower discount rate.

    Income tax expense amounted to $3.9 million for the first quarter of 2012, compared to $3.3 million for the fourth quarter of 2011 and $3.0 million for the first quarter of 2011. The effective tax rate for the first quarter of 2012 was 31.5%.

    Asset Quality

    Nonperforming assets decreased to $23.6 million, or 0.78% of total assets, at March 31, 2012, from $24.8 million, or 0.81% of total assets, at December 31, 2011. At March 31, 2012, total past due loans amounted to $21.1 million, or 0.98% of total loans, down by $5.2 million from December 31, 2011. Loans classified as troubled debt restructurings totaled $14.1 million at March 31, 2012, down by $5.5 million from the balance at December 31, 2011.

    The loan loss provision charged to earnings amounted to $900 thousand for the first quarter of 2012, down by $100 thousand from the fourth quarter of 2011 and down by $600 thousand from the first quarter of 2011. Net charge-offs amounted to $657 thousand in the first quarter of 2012, as compared to net charge-offs of $839 thousand in the fourth quarter of 2011 and $974 thousand in the first quarter of 2011.

    Loans

    Total loans rose by $8.2 million in the first quarter of 2012, led by a $17.2 million increase in commercial real estate loans. Total loans are up by $125.7 million, or 6%, from March 31, 2011, including an 8% increase in total commercial loans.

    Investment Securities

    The investment securities portfolio amounted to $558.3 million at March 31, 2012, a decline of $35.1 million from the balance at December 31, 2011, primarily due to principal payments received on mortgage-backed securities. At March 31, 2012, the net unrealized gain position on investment securities was $18.2 million.

    Deposits and Borrowings

    Total deposits rose by approximately 1% in the first quarter of 2012 and amounted to $2.1 billion at March 31, 2012. In the last twelve months, total deposits grew by $96.7 million, or 5%. The mix of deposits also improved with total demand and NOW deposits representing 28% of total deposits at March 31, 2012, up from 25% a year earlier.

    FHLBB advances totaled $504.9 million at March 31, 2012, down by $35.5 million from December 31, 2011. Other borrowings decreased $18.9 million during the quarter reflecting the maturity of securities sold under repurchase agreements.

    Capital Management

    Capital levels continued to exceed the regulatory minimum levels to be considered well capitalized, with a total risk-based capital ratio of 13.22% at March 31, 2012, compared to 12.86% at December 31, 2011. Total shareholder's equity was $287.9 million at March 31, 2012, up by $6.6 million from the balance at December 31, 2011.

    Dividends Declared

    The Board of Directors declared a quarterly dividend of 23 cents per share for the quarter ended March 31, 2012. This represented a one cent per share increase over the quarterly rate paid throughout 2011. The dividend was paid on April 13, 2012 to shareholders of record on March 30, 2012.

    Conference Call

    Washington Trust will host a conference call on Monday, April 23, 2012 at 10:30 a.m. Eastern Time to discuss first quarter results and business outlook. 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 and the Canada dial-in number is 1-866-605-3852. 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 10012200. The replay will be available until 9:00 a.m. on May 4, 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, eastern Massachusetts and southeastern 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, 2011, 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)         Mar 31,
    2012
          Dec 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  
    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  
     
     
    Washington Trust Bancorp, Inc. and Subsidiaries
    CONSOLIDATED STATEMENTS OF INCOME (unaudited)
                     
    (Dollars and shares in thousands, except per share amounts) Three Months
    Periods 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
     
     
    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)      

    Mar 31,
    2012

        Dec 31,
    2011
        Sep 30,
    2011
        Jun 30,
    2011
        Mar 31,
    2011
    Financial Data:              
    Total assets $ 3,028,690 $ 3,064,098 $ 2,969,613 $ 2,936,306 $ 2,892,272
    Total loans 2,155,359 2,147,159 2,087,759 2,057,152 2,029,637
    Total securities 558,284 593,392 581,543 591,580 576,158
    Total deposits 2,145,562 2,126,315 2,086,150 1,996,043 2,048,846
    Total shareholders' equity 287,935 281,351 285,494 281,425 273,885
    Net interest income 22,385 22,015 21,549 21,064 20,327
    Provision for loan losses 900 1,000 1,000 1,200 1,500
    Noninterest income, excluding OTTI losses 14,441 14,826 13,114 13,285 11,730
    Net OTTI losses recognized in earnings (209 ) (158 ) (33 )
    Noninterest expenses 23,399 24,774 22,595 22,264 20,740
    Income tax expense 3,880 3,290 3,328 3,320 2,984
    Net income 8,438 7,777 7,582 7,565 6,800
     
    Share Data:
    Basic earnings per common share $ 0.51 $ 0.48 $ 0.46 $ 0.46 $ 0.42
    Diluted earnings per common share $ 0.51 $ 0.47 $ 0.46 $ 0.46 $ 0.42
    Dividends declared per share $ 0.23 $ 0.22 $ 0.22 $ 0.22 $ 0.22
    Book value per share $ 17.61 $ 17.27 $ 17.54 $ 17.30 $ 16.87
    Tangible book value per share - Non-GAAP (1) $ 13.64 $ 13.28 $ 13.53 $ 13.27 $ 12.82
    Market value per share $ 24.14 $ 23.86 $ 19.78 $ 22.97 $ 23.74
     
    Shares outstanding at end of period 16,354.2 16,292.5 16,279.5 16,266.5 16,233.6
    Weighted average common shares outstanding-basic 16,329.8 16,288.1 16,277.8 16,251.6 16,197.2
    Weighted average common shares outstanding-diluted 16,370.2 16,326.5 16,293.7 16,284.3 16,229.8
     
    Key Ratios:
    Return on average assets 1.11 % 1.04 % 1.03 % 1.04 % 0.94 %
    Return on average tangible assets - Non-GAAP (1) 1.14 % 1.07 % 1.06 % 1.07 % 0.96 %
    Return on average equity 11.85 % 10.89 % 10.67 % 10.83 % 10.04 %
    Return on average tangible equity - Non-GAAP (1) 15.35 % 14.10 % 13.86 % 14.16 % 13.26 %
     
    Capital Ratios:
    Tier 1 risk-based capital

    11.96%

    (i)

    11.61 % 11.73 % 11.72 % 11.65 %
    Total risk-based capital

    13.22%

    (i)

    12.86 % 12.99 % 12.98 % 12.92 %
    Tier 1 leverage ratio

    8.75%

    (i)

    8.70 % 8.69 % 8.61 % 8.49 %
    Equity to assets 9.51 % 9.18 % 9.61 % 9.58 % 9.47 %
    Tangible equity to tangible assets - Non-GAAP (1) 7.53 % 7.21 % 7.58 % 7.52 % 7.36 %
    (i) - estimated
     
    Wealth Management Assets under
    Administration:
    Balance at beginning of period $ 3,900,061 $ 3,728,837 $ 4,148,433 $ 4,119,207 $ 3,967,207
    Net investment appreciation (depreciation) & income 298,155 215,449 (374,961 ) 1,625 145,563
    Net client cash flows (1,769 ) (36,815 ) (44,635 ) 27,601 6,437
    Other (2)             (7,410 )                  
    Balance at end of period       $ 4,196,447       $ 3,900,061       $ 3,728,837       $ 4,148,433       $ 4,119,207  
     

    (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 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
            Mar 31,
    2012
          Dec 31,
    2011
          Sep 30,
    2011
          Jun 30,
    2011
          Mar 31,
    2011
    Average Yield / Rate (taxable equivalent basis):                        
    Assets:
    Commercial and other loans 5.13 % 5.19 % 5.22 % 5.23 % 5.28 %

    Residential real estate loans, including mortgage loans held for sale

    4.51 % 4.46 % 4.58 % 4.72 % 4.79 %
    Consumer loans 3.89 % 3.87 % 3.90 % 3.91 % 3.93 %
    Total loans 4.74 % 4.74 % 4.80 % 4.86 % 4.91 %
    Cash, federal funds sold and other short-term investments 0.15 % 0.19 % 0.20 % 0.15 % 0.22 %
    FHLBB stock 0.50 % 0.30 % 0.26 % 0.31 % 0.31 %
    Taxable debt securities 3.62 % 3.58 % 3.78 % 4.01 % 3.93 %
    Nontaxable debt securities 5.92 % 5.82 % 5.82 % 5.88 % 5.95 %
    Corporate stocks 7.16 % 5.89 % 7.58 % 7.50 % 8.07 %
    Total securities 3.93 % 3.88 % 4.07 % 4.28 % 4.23 %
    Total interest-earning assets 4.43 % 4.44 % 4.53 % 4.61 % 4.61 %
    Liabilities:
    NOW accounts 0.08 % 0.10 % 0.10 % 0.10 % 0.10 %
    Money market accounts 0.22 % 0.24 % 0.25 % 0.25 % 0.33 %
    Savings accounts 0.11 % 0.12 % 0.12 % 0.12 % 0.14 %
    Time deposits 1.41 % 1.45 % 1.48 % 1.57 % 1.61 %
    FHLBB advances 3.14 % 3.44 % 3.49 % 3.80 % 4.04 %
    Junior subordinated debentures 4.78 % 4.73 % 4.73 % 4.77 % 4.79 %
    Other 4.98 % 4.59 % 4.50 % 4.48 % 4.23 %
    Total interest-bearing liabilities 1.38 % 1.45 % 1.53 % 1.61 % 1.67 %
     
    Interest rate spread (taxable equivalent basis) 3.05 % 2.99 % 3.00 % 3.00 % 2.94 %
    Net interest margin (taxable equivalent basis) 3.27 % 3.22 % 3.22 % 3.21 % 3.16 %
              At March 31, 2012
    (Dollars in thousands)          

    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           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
     

    (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)       Mar 31,
    2012
        Dec 31,
    2011
        Sep 30,
    2011
        Jun 30,
    2011
        Mar 31,
    2011
    Loans:                
    Commercial:   Mortgages $ 642,012 $ 624,813 $ 573,355 $ 562,976 $ 551,069
    Construction & development 11,130 10,955 18,518 19,448 34,615
        Other       486,258       488,860       478,652       491,071       470,704
    Total commercial 1,139,400 1,124,628 1,070,525 1,073,495 1,056,388
    Residential real estate: Mortgages 675,249 678,582 674,242 644,210 636,916
        Homeowner construction       21,708       21,832       17,226       14,137       12,241
    Total residential real estate 696,957 700,414 691,468 658,347 649,157
    Consumer: Home equity lines 223,311 223,430 222,886 223,284 221,003
    Home equity loans 40,793 43,121 45,354 46,797 48,337
        Other       54,898       55,566       57,526       55,229       54,752
        Total consumer       319,002       322,117       325,766       325,310       324,092
        Total loans       $ 2,155,359       $ 2,147,159       $ 2,087,759       $ 2,057,152       $ 2,029,637
                    At March 31, 2012
    (Dollars in thousands)                 Balance       % of Total
    Commercial Real Estate Loans by Property Location:      
    Rhode Island, Connecticut, Massachusetts $ 614,669 94.1 %
    New York, New Jersey, Pennsylvania 25,154 3.9 %
    New Hampshire 11,621 1.8 %
    Other                 1,698         0.2 %
    Total commercial real estate loans (1)                 $ 653,142         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 March 31, 2012
    (Dollars in thousands)         Balance         % of Total
    Residential Mortgages by Property Location:        
    Rhode Island, Connecticut, Massachusetts $ 673,048 96.4 %
    New York, Virginia, New Jersey, Maryland, Pennsylvania, District of Columbia 9,820 1.4 %
    Ohio 5,487 0.8 %
    Washington, Oregon 1,395 0.2 %
    Colorado, New Mexico 1,075 0.2 %
    Georgia 1,114 0.2 %
    New Hampshire 4,548 0.7 %
    Other         470           0.1 %
    Total residential mortgages         $ 696,957           100.0 %
            Period End Balances At
    (Dollars in thousands)         Mar 31,
    2012
        Dec 31,
    2011
        Sep 30,
    2011
        Jun 30,
    2011
        Mar 31,
    2011
    Deposits:                
    Demand deposits $ 333,833 $ 339,809 $ 319,203 $ 261,016 $ 274,798
    NOW accounts 258,986 257,031 242,372 236,162 228,502
    Money market accounts 400,396 406,777 374,324 355,096 387,923
    Savings accounts 257,495 243,904 239,356 227,014 223,599
    Time deposits         894,852       878,794       910,895       916,755       934,024
    Total deposits         $ 2,145,562       $ 2,126,315       $ 2,086,150       $ 1,996,043       $ 2,048,846
     

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

    $ 95,989 $ 90,073 $ 85,250 $ 85,659 $ 51,778

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

    $ 2,049,573 $ 2,036,242 $ 2,000,900 $ 1,910,384 $ 1,997,068
     
     
    Washington Trust Bancorp, Inc. and Subsidiaries
    SELECTED FINANCIAL HIGHLIGHTS (unaudited)
         
    Period End Balances At
    (Dollars in thousands)       Mar 31,
    2012
        Dec 31,
    2011
        Sep 30,
    2011
        Jun 30,
    2011
        Mar 31,
    2011
    Asset Quality Data:                
    Nonperforming Assets:
    Commercial mortgages $ 5,099 $ 5,709 $ 6,367 $ 7,476 $ 6,068
    Commercial construction and development
    Other commercial 4,200 3,708 2,745 3,152 4,445
    Residential real estate mortgages 9,031 10,614 11,352 9,570 8,265
    Consumer       1,069       1,206       1,126       780       601  
    Total nonaccrual loans $ 19,399 $ 21,237 $ 21,590 $ 20,978 $ 19,379
    Nonaccrual investment securities 750 887 796 934 752
    Property acquired through foreclosure or repossession       3,478       2,647       2,201       2,189       2,163  
    Total nonperforming assets       $ 23,627       $ 24,771       $ 24,587       $ 24,101       $ 22,294  
     
    Total past due loans to total loans 0.98 % 1.22 % 1.05 % 1.19 % 1.34 %
    Nonperforming assets to total assets 0.78 % 0.81 % 0.83 % 0.82 % 0.77 %
    Nonaccrual loans to total loans 0.90 % 0.99 % 1.03 % 1.02 % 0.95 %
    Allowance for loan losses to nonaccrual loans 154.88 % 140.33 % 137.29 % 139.92 % 150.21 %
    Allowance for loan losses to total loans 1.39 % 1.39 % 1.42 % 1.43 % 1.43 %
     
    Troubled Debt Restructured Loans:
    Accruing troubled debt restructured loans
    Commercial mortgages $ 1,059 $ 6,389 $ 5,861 $ 6,552 $ 10,071
    Other commercial 7,329 6,625 4,059 4,026 4,554
    Residential real estate mortgages 935 1,481 1,158 2,279 2,724
    Consumer       174       171       174       317       417  
    Accruing troubled debt restructured loans       9,497       14,666       11,252       13,174       17,766  
    Nonaccrual troubled debt restructured loans
    Commercial mortgages 348 91 1,209 2,555 826
    Other commercial 2,361 2,154 292 455 526
    Residential real estate mortgages 1,904 2,615 2,686 2,303 1,785
    Consumer       35       106       129       131       199  
    Nonaccrual troubled debt restructured loans       4,648       4,966       4,316       5,444       3,336  
    Total troubled debt restructured loans       $ 14,145       $ 19,632       $ 15,568       $ 18,618       $ 21,102  
     
     
    Washington Trust Bancorp, Inc. and Subsidiaries
    SELECTED FINANCIAL HIGHLIGHTS (unaudited)
           
    Period End Balances At
    (Dollars in thousands)         Mar 31,
    2012
          Dec 31,
    2011
          Sep 30,
    2011
          Jun 30,
    2011
          Mar 31,
    2011
    Past Due Loans:                        
    Loans 30-59 Days Past Due
    Commercial mortgages $ 104 $ 1,621 $ 874 $ 1,507 $ 3,223
    Other commercial loans 1,031 3,760 1,629 1,783 2,474
    Residential real estate mortgages 4,468 3,969 2,145 3,355 2,986
    Consumer loans         2,404         1,073         1,100         1,979         1,735
    Loans 30-59 days past due         $ 8,007         $ 10,423         $ 5,748         $ 8,624         $ 10,418
     
    Loans 60-89 Days Past Due
    Commercial mortgages $ $ 315 $ 328 $ 1,013 $ 1,626
    Other commercial loans 33 982 103 80 315
    Residential real estate mortgages 488 1,505 206 992 1,345
    Consumer loans         219         263         420         120         335
    Loans 60-89 days past due         $ 740         $ 3,065         $ 1,057         $ 2,205         $ 3,621
     
    Loans 90 Days or more Past Due
    Commercial mortgages $ 4,676 $ 4,995 $ 5,510 $ 5,553 $ 5,242
    Other commercial loans 2,521 633 1,209 1,378 2,524
    Residential real estate mortgages 4,843 6,283 7,826 6,549 5,165
    Consumer loans         326         874         649         245         317
    Loans 90 days or more past due         $ 12,366         $ 12,785         $ 15,194         $ 13,725         $ 13,248
     
    Total Past Due Loans
    Commercial mortgages $ 4,780 $ 6,931 $ 6,712 $ 8,073 $ 10,091
    Other commercial loans 3,585 5,375 2,941 3,241 5,313
    Residential real estate mortgages 9,799 11,757 10,177 10,896 9,496
    Consumer loans         2,949         2,210         2,169         2,344         2,387
    Total past due loans         $ 21,113         $ 26,273         $ 21,999         $ 24,554         $ 27,287
     
    Nonaccrual loans included in past due loans $ 14,747 $ 17,588 $ 16,585 $ 16,705 $ 16,456
            For the Quarters Ended
    (Dollars in thousands)         Mar 31,
    2012
          Dec 31,
    2011
          Sep 30,
    2011
          Jun 30,
    2011
          Mar 31,
    2011
    Allowance for Loan Losses:                        
    Balance at beginning of period $ 29,802 $ 29,641 $ 29,353 $ 29,109 $ 28,583
    Provision charged to earnings 900 1,000 1,000 1,200 1,500
    Charge-offs (681 ) (920 ) (818 ) (1,044 ) (1,052 )
    Recoveries         24         81         106         88         78  
    Balance at end of period         $ 30,045         $ 29,802         $ 29,641         $ 29,353         $ 29,109  
     
    Net Loan Charge-Offs (Recoveries):
    Commercial mortgages $ 7 $ 249 $ 249 $ 122 $ 333
    Other commercial 324 39 286 541 508
    Residential real estate mortgages 224 273 100 146 118
    Consumer         102         278         77         147         15  
    Total         $ 657         $ 839         $ 712         $ 956         $ 974  

    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 March 31,           2012       2011

    Average
    Balance

      Interest  

    Yield/
    Rate

     

    Average
    Balance

      Interest  

    Yield/
    Rate

    (Dollars in thousands)                      
    Assets:
    Commercial and other loans $ 1,121,684 $ 14,298 5.13 % $ 1,037,379 $ 13,505 5.28 %
    Residential real estate loans, including mortgage loans held for sale 720,706 8,075 4.51 % 651,277 7,700 4.79 %
    Consumer loans           319,948     3,097     3.89 %       324,046     3,144     3.93 %
    Total loans 2,162,338 25,470 4.74 % 2,012,702 24,349 4.91 %
    Cash, federal funds sold and short-term investments 52,313 20 0.15 % 43,945 24 0.22 %
    FHLBB stock 41,606 52 0.50 % 42,008 32 0.31 %
     
    Taxable debt securities 486,448 4,377 3.62 % 492,213 4,773 3.93 %
    Nontaxable debt securities 71,908 1,059 5.92 % 79,452 1,166 5.95 %
    Corporate stocks           1,854     33     7.16 %       2,513     50     8.07 %
    Total securities           560,210     5,469     3.93 %       574,178     5,989     4.23 %
    Total interest-earning assets 2,816,467 31,011 4.43 % 2,672,833 30,394 4.61 %
    Noninterest-earning assets           220,803                 211,785          
    Total assets           $ 3,037,270                 $ 2,884,618          
    Liabilities and Shareholders' Equity:
    NOW accounts $ 246,251 $ 46 0.08 % $ 224,977 $ 58 0.10 %
    Money market accounts 412,053 225 0.22 % 399,312 323 0.33 %
    Savings accounts 248,853 70 0.11 % 220,352 75 0.14 %
    Time deposits 885,344 3,093 1.41 % 946,431 3,746 1.61 %
    FHLBB advances 523,766 4,085 3.14 % 475,370 4,732 4.04 %
    Junior subordinated debentures 32,991 392 4.78 % 32,991 390 4.79 %
    Other           18,903     234     4.98 %       23,123     241     4.23 %
    Total interest-bearing liabilities 2,368,161 8,145 1.38 % 2,322,556 9,565 1.67 %
    Demand deposits 331,224 249,503
    Other liabilities 53,084 41,568
    Shareholders' equity           284,801                 270,991          
    Total liabilities and shareholders' equity           $ 3,037,270                 $ 2,884,618          
    Net interest income (FTE)               $ 22,866                 $ 20,829      
    Interest rate spread 3.05 % 2.94 %
    Net interest margin                   3.27 %               3.16 %
                                 
     

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

     
    (Dollars in thousands)
     
    Three months ended March 31,                       2012         2011
    Commercial and other loans $ 107 $ 90
    Nontaxable debt securities 366 397
    Corporate stocks                       8           15
    Total                       $ 481           $ 502
     
     
    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)         Mar 31,
    2012
        Dec 31,
    2011
        Sep 30,
    2011
        Jun 30,
    2011
        Mar 31,
    2011
    Calculation of Tangible Book Value per Share:                
    Total shareholders' equity at end of period $ 287,935 $ 281,351 $ 285,494 $ 281,425 $ 273,885
    Less:
    Goodwill 58,114 58,114 58,114 58,114 58,114
    Identifiable intangible assets, net         6,714       6,901       7,147       7,377       7,614  
    Total tangible shareholders' equity at end of period         $ 223,107       $ 216,336       $ 220,233       $ 215,934       $ 208,157  
     
    Shares outstanding at end of period         16,354.2       16,292.5       16,279.5       16,266.5       16,233.6  
     
    Book value per share - GAAP         $ 17.61       $ 17.27       $ 17.54       $ 17.30       $ 16.87  
    Tangible book value per share - Non-GAAP         $ 13.64       $ 13.28       $ 13.53       $ 13.27       $ 12.82  
     
    Calculation of Tangible Equity to Tangible Assets:
    Total tangible shareholders' equity at end of period         $ 223,107       $ 216,336       $ 220,233       $ 215,934       $ 208,157  
     
    Total assets at end of period $ 3,028,690 $ 3,064,098 $ 2,969,613 $ 2,936,306 $ 2,892,272
    Less:
    Goodwill 58,114 58,114 58,114 58,114 58,114
    Identifiable intangible assets, net         6,714       6,901       7,147       7,377       7,614  
    Total tangible assets at end of period         $ 2,963,862       $ 2,999,083       $ 2,904,352       $ 2,870,815       $ 2,826,544  
     
    Equity to assets - GAAP         9.51 %     9.18 %     9.61 %     9.58 %     9.47 %
    Tangible equity to tangible assets - Non-GAAP         7.53 %     7.21 %     7.58 %     7.52 %     7.36 %
     
    Calculation of Return on Average Tangible Assets:
    Net income         $ 8,438       $ 7,777       $ 7,582       $ 7,564       $ 6,800  
     
    Total average assets $ 3,037,270 $ 2,983,648 $ 2,935,146 $ 2,904,086 $ 2,884,618
    Less:
    Average goodwill 58,114 58,114 58,114 58,114 58,114
    Average identifiable intangible assets, net         6,805       7,025       7,257       7,493       7,730  
    Total average tangible assets         $ 2,972,351       $ 2,918,509       $ 2,869,775       $ 2,838,479       $ 2,818,774  
     
    Return on average assets - GAAP         1.11 %     1.04 %     1.03 %     1.04 %     0.94 %
    Return on average tangible assets - Non-GAAP         1.14 %     1.07 %     1.06 %     1.07 %     0.96 %
     
    Calculation of Return on Average Tangible Equity:
    Net income         $ 8,438       $ 7,777       $ 7,582       $ 7,564       $ 6,800  
     
    Total average shareholders' equity $ 284,801 $ 285,707 $ 284,244 $ 279,281 $ 270,991
    Less:
    Average goodwill 58,114 58,114 58,114 58,114 58,114
    Average identifiable intangible assets, net         6,805       7,025       7,257       7,493       7,730  
    Total average tangible shareholders' equity         $ 219,882       $ 220,568       $ 218,873       $ 213,674       $ 205,147  
     
    Return on average shareholders' equity - GAAP         11.85 %     10.89 %     10.67 %     10.83 %     10.04 %
    Return on average tangible shareholders' equity - Non-GAAP         15.35 %     14.10 %     13.86 %     14.16 %     13.26 %

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

    Source: Washington Trust Bancorp, Inc.