• Washington Trust Bancorp, Inc.
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  • Washington Trust Announces Record Earnings for Second Quarter 2012
    Company Release - 07/23/2012 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 second quarter 2012 net income of $8.7 million, or 53 cents per diluted share. On a diluted earnings per share basis, second quarter 2012 results were up by 2 cents, or 4%, from first quarter 2012 and by 7 cents, or 15%, from second quarter 2011. The returns on average equity and average assets for the second quarter of 2012 were 11.98% and 1.16%, respectively, compared to 11.85% and 1.11%, respectively, for the first quarter of 2012.

    “Washington Trust posted another record quarter with good performances along key business lines,” stated Joseph J. MarcAurele, Washington Trust Chairman, President and CEO. “We’re particularly pleased with our lending results in this challenging economy, as both our mortgage and commercial banking areas showed solid growth, while asset quality remained strong.”

    Selected financial highlights for the second quarter of 2012 included:

    • Net interest margin increased to 3.30%, up three basis points from the first quarter of 2012, benefiting from improvements in the mix of interest-earning assets and reductions to funding costs.
    • Mortgage banking revenues (net gains on loan sales and commissions on loans originated for others) totaled $3.0 million for the quarter, consistent with the prior quarter and reflective of continued strong mortgage origination volume.
    • Asset quality indicators showed continued improvement in the second 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 March 31, 2012 to June 30, 2012.
    • The loan loss provision charged to earnings in the second quarter of 2012 was $600 thousand, compared to $900 thousand in the previous quarter. The provision in the second quarter 2012 was the lowest quarterly provision since the first quarter of 2008.
    • Total loans were $2.2 billion at June 30, 2012, up by $58 million, or 3%, from March 31, 2012, led by solid growth of $53 million, or 5%, in the commercial loan portfolio.
    • Total deposits were $2.1 billion at June 30, 2012, down slightly from March 31, 2012.

    Second quarter 2012 results also included the following transactions:

    • A gain of $348 thousand was recognized in the quarter on the sale of a bank property. A charge of $131 thousand was also recognized in connection with a planned branch closure.
    • Balance sheet management transactions, which are expected to result in net interest income enhancement of approximately $292 thousand in the second half of 2012 with continuing benefits in future years, were conducted in the latter portion of the quarter, including:
      • Mortgage-backed securities of $6 million were sold and Federal Home Loan Bank of Boston (“FHLBB”) advances totaling $15 million were prepaid. These transactions resulted in second quarter 2012 net realized gains on securities of $217 thousand and debt prepayment penalty expense of $961 thousand.
      • The terms of $36.7 million of FHLBB advances with original maturity dates in 2014 and 2015 were modified into longer terms maturing in 2017.
    • A realized gain of $82 thousand was recorded in the quarter on the sale of perpetual preferred stock.
    • The net impact of these transactions was a reduction of 2 cents per diluted share in the second quarter of 2012.

    Net Interest Income

    The net interest margin for the second quarter of 2012 was 3.30%, up from 3.27% in the first quarter of 2012, reflecting continued improvement in the mix of interest-earning assets resulting from good loan growth and pay downs in the securities portfolio; as well as continued reductions of deposit costs. Second quarter 2012 net interest margin was up by 9 basis points from 3.21% in the second quarter of 2011, largely reflecting a reduction in the cost of funds.

    While net interest margin improved, average interest-earning assets for the second quarter of 2012 declined by $21.4 million, or 1%, from the previous quarter and grew by $104.0 million, or 4%, from the second quarter of 2011.

    As a result, net interest income of $22.4 million for the second quarter of 2012 was level when compared to the previous quarter and up by $1.3 million, or 6%, compared to the second quarter of 2011.

    Noninterest Income

    Second quarter 2012 noninterest income totaled $16.2 million, up by $1.9 million, or 14%, from the previous quarter and up by $2.9 million, or 22%, from the second quarter of 2011. Included in these results were net realized gains on sales of securities of $299 thousand recognized in the second quarter of 2012, resulting from the aforementioned balance sheet management transactions and sales of perpetual preferred stock. There were no sales of securities in the first quarter of 2012, while $226 thousand net realized gains on securities were recognized in the second quarter of 2011. Other-than-temporary impairment ("OTTI") losses on securities of $209 thousand were recorded in the first quarter of 2012, while no OTTI losses were recognized in either the second quarter of 2012 or 2011. Also included in the second quarter of 2012 and 2011 were gains on the sale of bank property of $348 thousand and $203 thousand, respectively, classified in other noninterest income. Excluding the net realized gains on sales of securities, OTTI losses and gains on sale of bank property, noninterest income for the second quarter of 2012 was up by $1.1 million, or 8%, from the previous quarter and up by $2.7 million, or 21%, from the second quarter of 2011.

    Significant changes in noninterest income included the following:

    • Mortgage banking revenues totaled $3.0 million in the second quarter of 2012, consistent with the previous quarter and up by $2.5 million from the second quarter of 2011, reflecting another strong quarter of mortgage origination activity.
    • Second quarter 2012 wealth management revenues were $7.5 million, up by $288 thousand on a linked quarter basis and level when compared to the second quarter of 2011. On a linked quarter basis, the increase includes a $274 thousand increase in tax preparation fees, which are typically concentrated in the second quarter. Wealth management assets under administration totaled $4.1 billion at June 30, 2012, down by $90.4 million, or 2%, from March 31, 2012, primarily due to declines in the financial markets.
    • Merchant processing fees totaled $2.7 million for the second quarter of 2012, up by $744 thousand on a linked quarter basis and comparable with the second quarter of 2011. On a linked quarter basis, the increase reflects a higher volume of transactions processed for existing and new customers. See discussion on the corresponding increase in merchant processing costs under the caption “Noninterest Expenses.”

    Noninterest Expenses

    Noninterest expenses totaled $25.2 million for the second quarter of 2012, up by $1.8 million, or 8%, from the previous quarter and up by $3.0 million, or 13%, from the second quarter of 2011. Included in noninterest expenses in the second quarter of 2012 and 2011 were debt prepayment penalties of $961 thousand and $221 thousand, respectively. Also included in second quarter 2012 noninterest expenses was a charge of $131 thousand, classified in net occupancy expense, for the termination of an operating lease associated with the planned closure of a branch in September of 2012. Excluding the debt prepayment charges and the operating lease termination charge, noninterest expenses for the second quarter of 2012 increased by $737 thousand, or 3%, from the previous quarter and up by $2.1 million, or 9%, from the second quarter of 2011.

    Significant changes in noninterest expense included the following:

    • Salaries and employee benefit costs amounted to $14.5 million in the second quarter of 2012, essentially unchanged from the previous quarter and up by $2.1 million, or 17%, from the second quarter of 2011. The increase from 2011 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.
    • Merchant processing costs totaled $2.3 million in the second quarter of 2012, up by $657 thousand on a linked quarter basis and comparable with the second quarter of 2011. See the discussion above regarding the corresponding increase in merchant processing fee income.

    Income tax expense amounted to $4.0 million for the second quarter of 2012, compared to $3.9 million for the first quarter of 2012 and $3.3 million for the second quarter of 2011. The effective tax rate for the second quarter of 2012 was 31.7%.

    Asset Quality

    Nonperforming assets decreased to $18.8 million, or 0.62% of total assets, at June 30, 2012, from $23.6 million, or 0.78% of total assets, at March 31, 2012. At June 30, 2012, total past due loans amounted to $20.3 million, or 0.92% of total loans, down by $826 thousand from March 31, 2012. Loans classified as troubled debt restructurings totaled $13.3 million at June 30, 2012, down by $857 thousand from the balance at March 31, 2012.

    The loan loss provision charged to earnings amounted to $600 thousand for the second quarter of 2012, down by $300 thousand from the first quarter of 2012 and down by $600 thousand from the second quarter of 2011. Net charge-offs amounted to $197 thousand in the second quarter of 2012, as compared to net charge-offs of $657 thousand in the first quarter of 2012 and $956 thousand in the second quarter of 2011.

    Loans

    Total loans rose by $58.5 million in the second quarter of 2012, led by the commercial portfolio with increases in commercial real estate loans of $28.6 million and other commercial loans of $24.0 million. Total loans are up by $66.7 million, or 3%, from December 31, 2011, including a 6% increase in total commercial loans.

    Investment Securities

    The investment securities portfolio amounted to $516.2 million at June 30, 2012, down by $42.1 million from March 31, 2012 and down by $77.2 million from December 31, 2011, primarily due to principal payments received on mortgage-backed securities not being reinvested as well as the sales of securities discussed above.

    Deposits and Borrowings

    Total deposits declined by $15.1 million, or 1%, in the second quarter of 2012, reflecting a seasonal decrease in government deposits. Total deposits were relatively flat compared to the balance at December 31, 2011. In the last twelve months, total deposits have increased $134.4 million, or 7%, including an increase of $87.4 million, or 18%, in DDA and NOW balances.

    FHLBB advances totaled $524.0 million at June 30, 2012, up by $19.1 million from March 31, 2012 and down by $16.5 million from December 31, 2011. See discussion above regarding the balance sheet management transactions executed in the second quarter of 2012. Other borrowings were $481 thousand at June 30, 2012, compared to $819 thousand at March 31, 2012 and $19.8 million at December 31, 2011. The $19.3 million decline in other borrowings from the balance at December 31, 2011, was primarily due to 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 13.15% at June 30, 2012, compared to 12.86% at December 31, 2011. Total shareholder's equity was $292.7 million at June 30, 2012, up by $11.4 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 June 30, 2012. The dividend was paid on July 13, 2012 to shareholders of record on July 2, 2012.

    Conference Call

    Washington Trust will host a conference call on Tuesday, July 24, 2012 at 8:30 a.m. Eastern Time to discuss second 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 the replay, dial 1-877-344-7529. For international access, dial 1-412-317-0088. The Conference Number for replay is 10015568. The replay will be available until 9:00 a.m. on August 8, 2012.

    Background

    Washington Trust Bancorp, Inc. is the parent of The Washington Trust Company, a state-chartered bank headquartered in Westerly, Rhode Island. Founded in 1800, Washington Trust is the oldest community bank in the nation and is the largest independent bank headquartered in Rhode Island. Washington Trust offers a full range of financial services, including commercial banking, small business banking, personal banking, and wealth management and trust services through its offices located in Rhode Island, Connecticut and Massachusetts. The Corporation’s common stock trades on The NASDAQ Global Select® Stock 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)  

    Jun 30,
    2012

      Dec 31,
    2011
    Assets:
    Cash and due from banks $ 66,702 $ 82,238
    Short-term investments 3,913 4,782
    Mortgage loans held for sale, at fair value; amortized cost $22,708 in 2012 and $19,624 in 2011 23,530 20,340
    Securities:
    Available for sale, at fair value; amortized cost $452,733 in 2012 and $524,036 in 2011 469,167 541,253
    Held to maturity, at cost; fair value $48,220 in 2012 and $52,499 in 2011   47,026     52,139  
    Total securities 516,193 593,392
    Federal Home Loan Bank stock, at cost 40,418 42,008
    Loans:
    Commercial and other 1,191,995 1,124,628
    Residential real estate 702,019 700,414
    Consumer   319,828     322,117  
    Total loans 2,213,842 2,147,159
    Less allowance for loan losses   30,448     29,802  
    Net loans 2,183,394 2,117,357
    Premises and equipment, net 27,223 26,028
    Investment in bank-owned life insurance 54,746 53,783
    Goodwill 58,114 58,114
    Identifiable intangible assets, net 6,528 6,901
    Other assets   60,289     59,155  
    Total assets   $ 3,041,050     $ 3,064,098  
    Liabilities:
    Deposits:
    Demand deposits $ 321,488 $ 339,809
    NOW accounts 263,124 257,031
    Money market accounts 388,686 406,777
    Savings accounts 264,772 243,904
    Time deposits   892,383     878,794  
    Total deposits 2,130,453 2,126,315
    Federal Home Loan Bank advances 523,989 540,450
    Junior subordinated debentures 32,991 32,991
    Other borrowings 481 19,758
    Other liabilities   60,402     63,233  
    Total liabilities   2,748,316     2,782,747  
    Shareholders’ Equity:
    Common stock of $.0625 par value; authorized 30,000,000 shares; issued 16,359,394 shares in 2012 and 16,292,471 shares in 2011 1,022 1,018
    Paid-in capital 90,022 88,030
    Retained earnings 203,726 194,198
    Accumulated other comprehensive loss   (2,036 )   (1,895 )
    Total shareholders’ equity   292,734     281,351  
    Total liabilities and shareholders’ equity   $ 3,041,050     $ 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   Six Months
    Periods ended June 30,     2012   2011   2012   2011
    Interest income:
    Interest and fees on loans $ 25,344 $ 24,707 $ 50,707 $ 48,966
    Interest on securities: Taxable 4,069 4,869 8,446 9,642
    Nontaxable 682 758 1,375 1,527
    Dividends on corporate stock and Federal Home Loan Bank stock 78 66 155 133
    Other interest income     17     13     37     37  
    Total interest income     30,190     30,413     60,720     60,305  
    Interest expense:
    Deposits 3,385 4,030 6,819 8,232
    Federal Home Loan Bank advances 3,998 4,685 8,083 9,417
    Junior subordinated debentures 391 392 783 782
    Other interest expense     5     242     239     483  
    Total interest expense     7,779     9,349     15,924     18,914  
    Net interest income 22,411 21,064 44,796 41,391
    Provision for loan losses     600     1,200     1,500     2,700  
    Net interest income after provision for loan losses     21,811     19,864     43,296     38,691  
    Noninterest income:
    Wealth management services:
    Trust and investment advisory fees 5,819 5,822 11,597 11,498
    Mutual fund fees 1,002 1,135 2,027 2,258
    Financial planning, commissions and other service fees     652     553     1,034     834  
    Wealth management services 7,473 7,510 14,658 14,590
    Service charges on deposit accounts 764 909 1,523 1,841
    Merchant processing fees 2,732 2,682 4,720 4,626
    Card interchange fees 626 581 1,169 1,068
    Income from bank-owned life insurance 477 482 963 958
    Net gains on loan sales and commissions on loans originated for others 3,015 537 6,112 1,062
    Net realized gains on securities 299 226 299 197
    Net (losses) gains on interest rate swap contracts (4 ) (35 ) 24 41
    Equity in earnings (losses) of unconsolidated subsidiaries 124 (145 ) 87 (289 )
    Other income     668     538     1,060     921  
    Noninterest income, excluding other-than-temporary impairment losses 16,174 13,285 30,615 25,015
    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     16,174     13,285     30,406     24,982  
    Noninterest expense:
    Salaries and employee benefits 14,451 12,398 28,911 24,226
    Net occupancy 1,527 1,236 3,053 2,557
    Equipment 1,143 1,070 2,250 2,119
    Merchant processing costs 2,320 2,345 3,983 4,014
    Outsourced services 895 875 1,815 1,747
    FDIC deposit insurance costs 426 464 884 1,187
    Legal, audit and professional fees 519 467 1,001 959
    Advertising and promotion 478 427 850 780
    Amortization of intangibles 186 237 373 475
    Foreclosed property costs 170 338 468 504
    Debt prepayment penalties 961 221 961 221
    Other expenses     2,152     2,186     4,078     4,215  
    Total noninterest expense     25,228     22,264     48,627     43,004  
    Income before income taxes 12,757 10,885 25,075 20,669
    Income tax expense     4,044     3,320     7,924     6,304  
    Net income     $ 8,713     $ 7,565     $ 17,151     $ 14,365  
     
    Weighted average common shares outstanding - basic 16,358 16,252 16,344 16,225
    Weighted average common shares outstanding - diluted 16,392 16,284 16,381 16,257
    Per share information: Basic earnings per common share $ 0.53 $ 0.46 $ 1.04 $ 0.88
    Diluted earnings per common share $ 0.53 $ 0.46 $ 1.04 $ 0.88
    Cash dividends declared per share $ 0.23 $ 0.22 $ 0.46 $ 0.44
    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)   Jun 30,
    2012
      Mar 31,
    2012
      Dec 31,
    2011
      Sep 30,
    2011
      Jun 30,
    2011
    Financial Data:        
    Total assets $ 3,041,050 $ 3,028,690 $ 3,064,098 $ 2,969,613 $ 2,936,306
    Total loans 2,213,842 2,155,359 2,147,159 2,087,759 2,057,152
    Total securities 516,193 558,284 593,392 581,543 591,580
    Total deposits 2,130,453 2,145,562 2,126,315 2,086,150 1,996,043
    Total shareholders' equity 292,734 287,935 281,351 285,494 281,425
    Net interest income 22,411 22,385 22,015 21,549 21,064
    Provision for loan losses 600 900 1,000 1,000 1,200
    Noninterest income, excluding OTTI losses 16,174 14,441 14,826 13,114 13,285
    Net OTTI losses recognized in earnings (209 ) (158 )
    Noninterest expenses 25,228 23,399 24,774 22,595 22,264
    Income tax expense 4,044 3,880 3,290 3,328 3,320
    Net income 8,713 8,438 7,777 7,582 7,565
     
    Share Data:
    Basic earnings per common share $ 0.53 $ 0.51 $ 0.48 $ 0.46 $ 0.46
    Diluted earnings per common share $ 0.53 $ 0.51 $ 0.47 $ 0.46 $ 0.46
    Dividends declared per share $ 0.23 $ 0.23 $ 0.22 $ 0.22 $ 0.22
    Book value per share $ 17.89 $ 17.61 $ 17.27 $ 17.54 $ 17.30
    Tangible book value per share - Non-GAAP (1) $ 13.94 $ 13.64 $ 13.28 $ 13.53 $ 13.27
    Market value per share $ 24.38 $ 24.14 $ 23.86 $ 19.78 $ 22.97
     
    Shares outstanding at end of period 16,359 16,354 16,292 16,279 16,266
    Weighted average common shares outstanding - basic 16,358 16,330 16,288 16,278 16,252
    Weighted average common shares outstanding - diluted 16,392 16,370 16,327 16,294 16,284
     
    Key Ratios:
    Return on average assets 1.16 % 1.11 % 1.04 % 1.03 % 1.04 %
    Return on average tangible assets - Non-GAAP (1) 1.18 % 1.14 % 1.07 % 1.06 % 1.07 %
    Return on average equity 11.98 % 11.85 % 10.89 % 10.67 % 10.83 %
    Return on average tangible equity - Non-GAAP (1) 15.41 % 15.35 % 14.10 % 13.86 % 14.16 %
     
    Capital Ratios:
    Tier 1 risk-based capital 11.90% (i) 11.96 % 11.61 % 11.73 % 11.72 %
    Total risk-based capital 13.15% (i) 13.22 % 12.86 % 12.99 % 12.98 %
    Tier 1 leverage ratio 9.00% (i) 8.75 % 8.70 % 8.69 % 8.61 %
    Equity to assets 9.63 % 9.51 % 9.18 % 9.61 % 9.58 %
    Tangible equity to tangible assets - Non-GAAP (1) 7.66 % 7.53 % 7.21 % 7.58 % 7.52 %
    (i) - estimated
     
    Wealth Management Assets under
    Administration:
    Balance at beginning of period $ 4,196,447 $ 3,900,061 $ 3,728,837 $ 4,148,433 $ 4,119,207
    Net investment (depreciation) appreciation & income (105,791 ) 298,155 215,449 (374,961 ) 1,625
    Net client cash flows 15,362 (1,769 ) (36,815 ) (44,635 ) 27,601
    Other (2)           (7,410 )        
    Balance at end of period   $ 4,106,018     $ 4,196,447     $ 3,900,061     $ 3,728,837     $ 4,148,433  

    (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)
     
    Six Months Ended
    (Dollars and shares in thousands, except per share amounts)   Jun 30,
    2012
        Jun 30,
    2011
    Financial Data:    
    Net interest income $ 44,796 $ 41,391
    Provision for loan losses 1,500 2,700
    Noninterest income, excluding OTTI losses 30,615 25,015
    Net OTTI losses recognized in earnings (209 ) (33 )
    Noninterest expenses 48,627 43,004
    Income tax expense 7,924 6,304
    Net income 17,151 14,365
     
    Share Data:
    Basic earnings per common share $ 1.04 $ 0.88
    Diluted earnings per common share $ 1.04 $ 0.88
    Dividends declared per share $ 0.46 $ 0.44
     
    Weighted average common shares outstanding - basic 16,344 16,225
    Weighted average common shares outstanding - diluted 16,381 16,257
     
    Key Ratios:
    Return on average assets 1.13 % 0.99 %
    Return on average tangible assets - Non-GAAP (1) 1.16 % 1.02 %
    Return on average equity 11.92 % 10.44 %
    Return on average tangible equity - Non-GAAP (1) 15.38 % 13.72 %
     
    Asset Quality Data:
    Allowance for Loan Losses:
    Balance at beginning of period $ 29,802 $ 28,583
    Provision charged to earnings 1,500 2,700
    Charge-offs (1,377 ) (2,097 )
    Recoveries   523       167  
    Balance at end of period   $ 30,448       $ 29,353  
     
    Net Loan Charge-Offs (Recoveries):
    Commercial mortgages $ (381 ) $ 455
    Other commercial 873 1,049
    Residential real estate mortgages 177 263
    Consumer   185       163  
    Total   $ 854       $ 1,930  
     
    Net charge-offs to average loans (annualized) 0.08 % 0.19 %
     
    Wealth Management Assets Under Administration:
    Balance at beginning of period $ 3,900,061 $ 3,967,207
    Net investment appreciation & income 192,364 147,188
    Net client cash flows   13,593       34,038  
    Balance at end of period   $ 4,106,018       $ 4,148,433  

    (1) See the section labeled “Supplemental Information - Non-GAAP Financial Measures” at the end of this document.

    Washington Trust Bancorp, Inc. and Subsidiaries
    SELECTED FINANCIAL HIGHLIGHTS (unaudited)
     
    For the Quarters Ended
       

    Jun 30,
    2012

      Mar 31,
    2012
      Dec 31,
    2011
      Sep 30,
    2011
      Jun 30,
    2011
    Average Yield / Rate (taxable equivalent basis):        
    Assets:
    Commercial mortgages and other commercial loans 5.03 % 5.13 % 5.19 % 5.22 % 5.23 %
    Residential real estate loans, including mortgage loans held for sale 4.40 % 4.51 % 4.46 % 4.58 % 4.72 %
    Consumer loans 3.85 % 3.89 % 3.87 % 3.90 % 3.91 %
    Total loans 4.65 % 4.74 % 4.74 % 4.80 % 4.86 %
    Cash, federal funds sold and other short-term investments 0.23 % 0.15 % 0.19 % 0.20 % 0.15 %
    FHLBB stock 0.54 % 0.50 % 0.30 % 0.26 % 0.31 %
    Taxable debt securities 3.63 % 3.62 % 3.58 % 3.78 % 4.01 %
    Nontaxable debt securities 5.93 % 5.92 % 5.82 % 5.82 % 5.88 %
    Corporate stocks 7.58 % 7.16 % 5.89 % 7.58 % 7.50 %
    Total securities 3.95 % 3.93 % 3.88 % 4.07 % 4.28 %
    Total interest-earning assets 4.41 % 4.43 % 4.44 % 4.53 % 4.61 %
    Liabilities:
    NOW accounts 0.06 % 0.08 % 0.10 % 0.10 % 0.10 %
    Money market accounts 0.23 % 0.22 % 0.24 % 0.25 % 0.25 %
    Savings accounts 0.11 % 0.11 % 0.12 % 0.12 % 0.12 %
    Time deposits 1.35 % 1.41 % 1.45 % 1.48 % 1.57 %
    FHLBB advances 3.25 % 3.14 % 3.44 % 3.49 % 3.80 %
    Junior subordinated debentures 4.77 % 4.78 % 4.73 % 4.73 % 4.77 %
    Other 2.07 % 4.98 % 4.59 % 4.50 % 4.48 %
    Total interest-bearing liabilities 1.33 % 1.38 % 1.45 % 1.53 % 1.61 %
     
    Interest rate spread (taxable equivalent basis) 3.08 % 3.05 % 2.99 % 3.00 % 3.00 %
    Net interest margin (taxable equivalent basis) 3.30 % 3.27 % 3.22 % 3.22 % 3.21 %
      At June 30, 2012
    Amortized   Unrealized   Unrealized   Fair
    (Dollars in thousands)   Cost (1)   Gains   Losses   Value
    Securities Available for Sale:
    Obligations of U.S. government-sponsored enterprises $ 29,443 $ 2,876 $ $ 32,319
    Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises 305,757 18,535 324,292
    States and political subdivisions 68,939 4,784 73,723
    Trust preferred securities:
    Individual name issuers 30,658 (7,038 ) 23,620
    Collateralized debt obligations 4,047 (3,280 ) 767
    Corporate bonds   13,889     659     (102 )   14,446
    Total securities available for sale   452,733     26,854     (10,420 )   469,167
    Held to Maturity:
    Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises   47,026     1,194         48,220
    Total securities held to maturity   47,026     1,194         48,220
    Total securities   $ 499,759     $ 28,048     $ (10,420 )   $ 517,387

    (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)  

    Jun 30,
    2012

      Mar 31,
    2012
      Dec 31,
    2011
      Sep 30,
    2011
      Jun 30,
    2011
    Loans:        
    Commercial: Mortgages $ 664,410 $ 642,012 $ 624,813 $ 573,355 $ 562,976
    Construction & development 17,365 11,130 10,955 18,518 19,448
      Other   510,220     486,258     488,860     478,652     491,071
    Total commercial 1,191,995 1,139,400 1,124,628 1,070,525 1,073,495
    Residential real estate: Mortgages 680,772 675,249 678,582 674,242 644,210
      Homeowner construction   21,247     21,708     21,832     17,226     14,137
    Total residential real estate 702,019 696,957 700,414 691,468 658,347
    Consumer: Home equity lines 224,550 223,311 223,430 222,886 223,284
    Home equity loans 40,690 40,793 43,121 45,354 46,797
      Other   54,588     54,898     55,566     57,526     55,229
      Total consumer   319,828     319,002     322,117     325,766     325,310
      Total loans   $ 2,213,842     $ 2,155,359     $ 2,147,159     $ 2,087,759     $ 2,057,152
      At June 30, 2012
    (Dollars in thousands)   Balance   % of Total
    Commercial Real Estate Loans by Property Location:  
    Rhode Island, Connecticut, Massachusetts $ 629,891 92.4 %
    New York, New Jersey, Pennsylvania 37,428 5.5 %
    New Hampshire 12,271 1.8 %
    Other   2,185     0.3 %
    Total commercial real estate loans (1)   $ 681,775     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 June 30, 2012
    (Dollars in thousands)   Balance   % of Total
    Residential Mortgages by Property Location:  
    Rhode Island, Connecticut, Massachusetts $ 679,847 96.7 %
    New York, Virginia, New Jersey, Maryland, Pennsylvania, District of Columbia 9,749 1.4 %
    Ohio 4,935 0.7 %
    New Hampshire 4,021 0.6 %
    Washington, Oregon 1,390 0.2 %
    Georgia 1,110 0.2 %
    New Mexico 497 0.1 %
    Other   470     0.1 %
    Total residential mortgages   $ 702,019     100.0 %
      Period End Balances At
    (Dollars in thousands)   Jun 30,
    2012
    Mar 31,
    2012
    Dec 31,
    2011
    Sep 30,
    2011
    Jun 30,
    2011
    Deposits:
    Demand deposits $ 321,488 $ 333,833 $ 339,809 $ 319,203 $ 261,016
    NOW accounts 263,124 258,986 257,031 242,372 236,162
    Money market accounts 388,686 400,396 406,777 374,324 355,096
    Savings accounts 264,772 257,495 243,904 239,356 227,014
    Time deposits   892,383   894,852   878,794   910,895   916,755
    Total deposits   $ 2,130,453   $ 2,145,562   $ 2,126,315   $ 2,086,150   $ 1,996,043
     
    Out-of-market brokered certificates of deposits included in time deposits $ 102,661 $ 95,989 $ 90,073 $ 85,250 $ 85,659
    In-market deposits, excluding out-of-market brokered certificates of deposit $ 2,027,792 $ 2,049,573 $ 2,036,242 $ 2,000,900 $ 1,910,384
    Washington Trust Bancorp, Inc. and Subsidiaries
    SELECTED FINANCIAL HIGHLIGHTS (unaudited)
     
    Period End Balances At
    (Dollars in thousands)   Jun 30,
    2012
      Mar 31,
    2012
      Dec 31,
    2011
      Sep 30,
    2011
      Jun 30,
    2011
    Asset Quality Data:        
    Nonperforming Assets:
    Commercial mortgages $ 2,597 $ 5,099 $ 5,709 $ 6,367 $ 7,476
    Commercial construction and development
    Other commercial 3,405 4,200 3,708 2,745 3,152
    Residential real estate mortgages 8,659 9,031 10,614 11,352 9,570
    Consumer   1,081     1,069     1,206     1,126     780  
    Total nonaccrual loans $ 15,742 $ 19,399 $ 21,237 $ 21,590 $ 20,978
    Nonaccrual investment securities 767 750 887 796 934
    Property acquired through foreclosure or repossession   2,332     3,478     2,647     2,201     2,189  
    Total nonperforming assets   $ 18,841     $ 23,627     $ 24,771     $ 24,587     $ 24,101  
     
    Total past due loans to total loans 0.92 % 0.98 % 1.22 % 1.05 % 1.19 %
    Nonperforming assets to total assets 0.62 % 0.78 % 0.81 % 0.83 % 0.82 %
    Nonaccrual loans to total loans 0.71 % 0.90 % 0.99 % 1.03 % 1.02 %
    Allowance for loan losses to nonaccrual loans 193.42 % 154.88 % 140.33 % 137.29 % 139.92 %
    Allowance for loan losses to total loans 1.38 % 1.39 % 1.39 % 1.42 % 1.43 %
     
    Troubled Debt Restructured Loans:
    Accruing troubled debt restructured loans:
    Commercial mortgages $ 1,251 $ 1,059 $ 6,389 $ 5,861 $ 6,552
    Other commercial 6,916 7,329 6,625 4,059 4,026
    Residential real estate mortgages 570 935 1,481 1,158 2,279
    Consumer   159     174     171     174     317  
    Accruing troubled debt restructured loans   8,896     9,497     14,666     11,252     13,174  
    Nonaccrual troubled debt restructured loans:
    Commercial mortgages 348 91 1,209 2,555
    Other commercial 2,317 2,361 2,154 292 455
    Residential real estate mortgages 2,028 1,904 2,615 2,686 2,303
    Consumer   47     35     106     129     131  
    Nonaccrual troubled debt restructured loans   4,392     4,648     4,966     4,316     5,444  
    Total troubled debt restructured loans   $ 13,288     $ 14,145     $ 19,632     $ 15,568     $ 18,618  
    Washington Trust Bancorp, Inc. and Subsidiaries
    SELECTED FINANCIAL HIGHLIGHTS (unaudited)
     
    Period End Balances At
    (Dollars in thousands)   Jun 30,
    2012
      Mar 31,
    2012
      Dec 31,
    2011
      Sep 30,
    2011
      Jun 30,
    2011
    Past Due Loans:        
    Loans 30-59 Days Past Due:
    Commercial mortgages $ 411 $ 104 $ 1,621 $ 874 $ 1,507
    Other commercial loans 849 1,031 3,760 1,629 1,783
    Residential real estate mortgages 4,969 4,468 3,969 2,145 3,355
    Consumer loans   2,660     2,404     1,073     1,100     1,979
    Loans 30-59 days past due   $ 8,889     $ 8,007     $ 10,423     $ 5,748     $ 8,624
     
    Loans 60-89 Days Past Due:
    Commercial mortgages $ 233 $ $ 315 $ 328 $ 1,013
    Other commercial loans 434 33 982 103 80
    Residential real estate mortgages 1,600 488 1,505 206 992
    Consumer loans   677     219     263     420     120
    Loans 60-89 days past due   $ 2,944     $ 740     $ 3,065     $ 1,057     $ 2,205
     
    Loans 90 Days or more Past Due:
    Commercial mortgages $ 2,339 $ 4,676 $ 4,995 $ 5,510 $ 5,553
    Other commercial loans 1,714 2,521 633 1,209 1,378
    Residential real estate mortgages 4,039 4,843 6,283 7,826 6,549
    Consumer loans   362     326     874     649     245
    Loans 90 days or more past due   $ 8,454     $ 12,366     $ 12,785     $ 15,194     $ 13,725
     
    Total Past Due Loans:
    Commercial mortgages $ 2,983 $ 4,780 $ 6,931 $ 6,712 $ 8,073
    Other commercial loans 2,997 3,585 5,375 2,941 3,241
    Residential real estate mortgages 10,608 9,799 11,757 10,177 10,896
    Consumer loans   3,699     2,949     2,210     2,169     2,344
    Total past due loans   $ 20,287     $ 21,113     $ 26,273     $ 21,999     $ 24,554
     
    Nonaccrual loans included in past due loans $ 12,719 $ 14,747 $ 17,588 $ 16,585 $ 16,705
      For the Quarters Ended
    (Dollars in thousands)   Jun 30,
    2012
      Mar 31,
    2012
      Dec 31,
    2011
      Sep 30,
    2011
      Jun 30,
    2011
    Allowance for Loan Losses:        
    Balance at beginning of period $ 30,045 $ 29,802 $ 29,641 $ 29,353 $ 29,109
    Provision charged to earnings 600 900 1,000 1,000 1,200
    Charge-offs (696 ) (681 ) (920 ) (818 ) (1,044 )
    Recoveries   499     24     81     106     88  
    Balance at end of period   $ 30,448     $ 30,045     $ 29,802     $ 29,641     $ 29,353  
     
    Net Loan Charge-Offs (Recoveries):
    Commercial mortgages $ (388 ) $ 7 $ 249 $ 249 $ 122
    Other commercial 549 324 39 286 541
    Residential real estate mortgages (47 ) 224 273 100 146
    Consumer   83     102     278     77     147  
    Total   $ 197     $ 657     $ 839     $ 712     $ 956  

    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 June 30,   2012     2011

    Average
    Balance

     

    Interest

     

    Yield/
    Rate

     

    Average
    Balance

      Interest  

    Yield/
    Rate

    (Dollars in thousands)            
    Assets:
    Commercial mortgages and other commercial loans $ 1,166,545 $ 14,590 5.03 % $ 1,065,619 $ 13,900 5.23 %
    Residential real estate loans, including mortgage loans held for sale 714,154 7,809 4.40 % 656,570 7,732 4.72 %
    Consumer loans   320,442     3,067     3.85 %     324,890     3,166     3.91 %
    Total loans 2,201,141 25,466 4.65 % 2,047,079 24,798 4.86 %
    Cash, federal funds sold and short-term investments 30,078 17 0.23 % 34,166 13 0.15 %
    FHLBB stock 40,418 54 0.54 % 42,008 32 0.31 %
     
    Taxable debt securities 451,207 4,069 3.63 % 486,905 4,869 4.01 %
    Nontaxable debt securities 70,462 1,039 5.93 % 78,447 1,150 5.88 %
    Corporate stocks   1,804     34     7.58 %     2,513     47     7.50 %
    Total securities   523,473     5,142     3.95 %     567,865     6,066     4.28 %
    Total interest-earning assets 2,795,110 30,679 4.41 % 2,691,118 30,909 4.61 %
    Noninterest-earning assets   222,057               212,968          
    Total assets   $ 3,017,167               $ 2,904,086          
    Liabilities and Shareholders' Equity:
    NOW accounts $ 254,528 $ 39 0.06 % $ 229,746 $ 60 0.10 %
    Money market accounts 405,241 232 0.23 % 393,945 249 0.25 %
    Savings accounts 258,824 72 0.11 % 224,588 69 0.12 %
    Time deposits 905,466 3,042 1.35 % 935,813 3,652 1.57 %
    FHLBB advances 494,257 3,998 3.25 % 494,989 4,685 3.80 %
    Junior subordinated debentures 32,991 391 4.77 % 32,991 392 4.77 %
    Other   973     5     2.07 %     21,663     242     4.48 %
    Total interest-bearing liabilities 2,352,280 7,779 1.33 % 2,333,735 9,349 1.61 %
    Demand deposits 321,094 251,585
    Other liabilities 52,939 39,485
    Shareholders' equity   290,854               279,281          
    Total liabilities and shareholders' equity   $ 3,017,167               $ 2,904,086          
    Net interest income (FTE)       $ 22,900               $ 21,560      
    Interest rate spread 3.08 % 3.00 %
    Net interest margin           3.30 %             3.21 %

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

    (Dollars in thousands)    
     
    Three months ended June 30,   2012   2011
    Commercial mortgages and other commercial loans $ 122 $ 91
    Nontaxable debt securities 357 392
    Corporate stocks   10     13
    Total   $ 489     $ 496
    Washington Trust Bancorp, Inc. and Subsidiaries
    CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited)
       
    Six months ended June 30,   2012   2011

    Average
    Balance

     

    Interest

     

    Yield/
    Rate

     

    Average
    Balance

      Interest  

    Yield/
    Rate

    (Dollars in thousands)          
    Assets:
    Commercial mortgages and other commercial loans $ 1,144,114 $ 28,888 5.08 % $ 1,051,577 $ 27,406 5.26 %
    Residential real estate loans, including mortgage loans held for sale 717,430 15,884 4.45 % 653,938 15,432 4.76 %
    Consumer loans   320,195     6,164     3.87 %   324,471     6,310     3.92 %
    Total loans 2,181,739 50,936 4.69 % 2,029,986 49,148 4.88 %
    Cash, federal funds sold and short-term investments 41,196 37 0.18 % 39,029 37 0.19 %
    FHLBB stock 41,012 106 0.52 % 42,008 64 0.31 %
     
    Taxable debt securities 468,828 8,446 3.62 % 489,544 9,642 3.97 %
    Nontaxable debt securities 71,185 2,098 5.93 % 78,947 2,316 5.92 %
    Corporate stocks   1,828     67     7.37 %   2,512     96     7.71 %
    Total securities   541,841     10,611     3.94 %   571,003     12,054     4.26 %
    Total interest-earning assets 2,805,788 61,690 4.42 % 2,682,026 61,303 4.61 %
    Noninterest-earning assets   221,430             212,379          
    Total assets   $ 3,027,218             $ 2,894,405          
    Liabilities and Shareholders' Equity:
    NOW accounts $ 250,390 $ 85 0.07 % $ 227,375 $ 118 0.10 %
    Money market accounts 408,647 457 0.22 % 396,614 572 0.29 %
    Savings accounts 253,837 142 0.11 % 222,481 144 0.13 %
    Time deposits 895,405 6,135 1.38 % 941,093 7,398 1.59 %
    FHLBB advances 509,012 8,083 3.19 % 485,233 9,417 3.91 %
    Junior subordinated debentures 32,991 783 4.77 % 32,991 782 4.78 %
    Other   9,938     239     4.84 %   22,389     483     4.35 %
    Total interest-bearing liabilities 2,360,220 15,924 1.36 % 2,328,176 18,914 1.64 %
    Demand deposits 326,159 250,550
    Other liabilities 53,012 40,520
    Shareholders' equity   287,827             275,159          
    Total liabilities and shareholders' equity   $ 3,027,218             $ 2,894,405          
    Net interest income (FTE)       $ 45,766             $ 42,389      
    Interest rate spread 3.06 % 2.97 %
    Net interest margin           3.28 %           3.19 %

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

    (Dollars in thousands)    
     
    Six months ended June 30,   2012   2011
    Commercial mortgages and other commercial loans $ 229 $ 182
    Nontaxable debt securities 723 789
    Corporate stocks   18     27
    Total   $ 970     $ 998
    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)  

    Jun 30,
    2012

      Mar 31,
    2012
      Dec 31,
    2011
      Sep 30,
    2011
      Jun 30,
    2011
    Calculation of Tangible Book Value per Share:        
    Total shareholders' equity at end of period $ 292,734 $ 287,935 $ 281,351 $ 285,494 $ 281,425
    Less:
    Goodwill 58,114 58,114 58,114 58,114 58,114
    Identifiable intangible assets, net   6,528     6,714     6,901     7,147     7,377  
    Total tangible shareholders' equity at end of period   $ 228,092     $ 223,107     $ 216,336     $ 220,233     $ 215,934  
     
    Shares outstanding at end of period   16,359     16,354     16,292     16,279     16,266  
     
    Book value per share - GAAP   $ 17.89     $ 17.61     $ 17.27     $ 17.54     $ 17.30  
    Tangible book value per share - Non-GAAP   $ 13.94     $ 13.64     $ 13.28     $ 13.53     $ 13.27  
     
    Calculation of Tangible Equity to Tangible Assets:
    Total tangible shareholders' equity at end of period   $ 228,092     $ 223,107     $ 216,336     $ 220,233     $ 215,934  
     
    Total assets at end of period $ 3,041,050 $ 3,028,690 $ 3,064,098 $ 2,969,613 $ 2,936,306
    Less:
    Goodwill 58,114 58,114 58,114 58,114 58,114
    Identifiable intangible assets, net   6,528     6,714     6,901     7,147     7,377  
    Total tangible assets at end of period   $ 2,976,408     $ 2,963,862     $ 2,999,083     $ 2,904,352     $ 2,870,815  
     
    Equity to assets - GAAP   9.63 %   9.51 %   9.18 %   9.61 %   9.58 %
    Tangible equity to tangible assets - Non-GAAP   7.66 %   7.53 %   7.21 %   7.58 %   7.52 %
     
    Calculation of Return on Average Tangible Assets:
    Net income   $ 8,713     $ 8,438     $ 7,777     $ 7,582     $ 7,564  
     
    Total average assets $ 3,017,167 $ 3,037,270 $ 2,983,648 $ 2,935,146 $ 2,904,086
    Less:
    Average goodwill 58,114 58,114 58,114 58,114 58,114
    Average identifiable intangible assets, net   6,619     6,805     7,025     7,257     7,493  
    Total average tangible assets   $ 2,952,434     $ 2,972,351     $ 2,918,509     $ 2,869,775     $ 2,838,479  
     
    Return on average assets - GAAP   1.16 %   1.11 %   1.04 %   1.03 %   1.04 %
    Return on average tangible assets - Non-GAAP   1.18 %   1.14 %   1.07 %   1.06 %   1.07 %
     
    Calculation of Return on Average Tangible Equity:
    Net income   $ 8,713     $ 8,438     $ 7,777     $ 7,582     $ 7,564  
     
    Total average shareholders' equity $ 290,854 $ 284,801 $ 285,707 $ 284,244 $ 279,281
    Less:
    Average goodwill 58,114 58,114 58,114 58,114 58,114
    Average identifiable intangible assets, net   6,619     6,805     7,025     7,257     7,493  
    Total average tangible shareholders' equity   $ 226,121     $ 219,882     $ 220,568     $ 218,873     $ 213,674  
     
    Return on average shareholders' equity - GAAP   11.98 %   11.85 %   10.89 %   10.67 %   10.83 %
    Return on average tangible shareholders' equity - Non-GAAP   15.41 %   15.35 %   14.10 %   13.86 %   14.16 %
    Washington Trust Bancorp, Inc. and Subsidiaries
    SUPPLEMENTAL INFORMATION - Non-GAAP Financial Measures (unaudited)
     
    Six Months Ended
    (Dollars in thousands)   Jun 30,
    2012
      Jun 30,
    2011
    Calculation of return on average tangible assets:  
    Net income   $ 17,151     $ 14,364  
     
    Total average assets $ 3,027,218 $ 2,894,405
    Less:
    Average goodwill 58,114 58,114
    Average identifiable intangible assets, net   6,712     7,611  
    Total average tangible assets   $ 2,962,392     $ 2,828,680  
     
    Return on average assets - GAAP   1.13 %   0.99 %
    Return on average tangible assets - Non-GAAP   1.16 %   1.02 %
     
     
    Calculation of return on average tangible equity:
    Net income   $ 17,151     $ 14,364  
     
    Total average shareholders' equity $ 287,827 $ 275,159
    Less:
    Average goodwill 58,114 58,114
    Average identifiable intangible assets, net   6,712     7,611  
    Total average tangible shareholders' equity   $ 223,001     $ 209,434  
     
    Return on average shareholders' equity - GAAP   11.92 %   10.44 %
    Return on average tangible shareholders' equity - Non-GAAP   15.38 %   13.72 %

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

    Source: Washington Trust Bancorp, Inc.