• Washington Trust Bancorp, Inc.
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  • Washington Trust Announces Record Earnings for Fourth Quarter and Full Year 2012
    Company Release - 01/30/2013 16:04

    Diluted Earnings Per Share up 17% over 2011

    WESTERLY, R.I.--(BUSINESS WIRE)-- Washington Trust Bancorp, Inc. (NASDAQ Global Select; symbol: WASH), parent company of The Washington Trust Company, today announced fourth quarter 2012 net income of $9.0 million, or $0.55 per diluted share. On a diluted earnings per share basis, fourth quarter 2012 results were up by $.01, or 2%, from third quarter 2012 and by $.08, or 17%, from fourth quarter 2011.

    For the year ended December 31, 2012, net income totaled $35.1 million, or $2.13 per diluted share, compared to $29.7 million, or $1.82 per diluted share, for 2011. On a diluted earnings per share basis, 2012 earnings were up by 17% over 2011. The returns on average equity and average assets for 2012 were 11.97% and 1.16%, respectively, compared to 10.61% and 1.02%, respectively, for 2011.

    “Washington Trust had another exceptional performance in 2012, highlighted by record earnings and growth along key business lines,” stated Joseph J. MarcAurele, Washington Trust Chairman, President and CEO. “We have continued to manage our way through these challenging economic times by successfully expanding our market reach, attracting new client relationships, and continuing to make a difference in the communities in which we live and work.”

    Selected financial highlights for the fourth quarter of 2012 included:

    • The returns on average equity and average assets for the quarter were 12.01% and 1.19%, respectively, compared to 12.02% and 1.17%, respectively, for the third quarter of 2012.
    • Residential mortgage origination volume and mortgage banking revenues (net gains on loan sales and commissions on loans originated for others) reached an all-time quarterly high and totaled $4.5 million for the quarter, a 28% increase over the prior quarter.
    • Loans totaled $2.3 billion at December 31, 2012, up by $37.3 million, or 2%, from September 30, 2012, led by growth in the commercial loan portfolio.
    • Total deposits amounted to $2.3 billion at December 31, 2012, up $78.0 million, or 3.5%, from September 30, 2012, with growth in lower-cost deposits.

    The following transactions were included in the results for fourth quarter of 2012:

    • Balance sheet management transactions were conducted in the quarter and were comprised of:
      • The sale of mortgage-backed securities with an amortized cost of $33.1 million, resulting in fourth quarter 2012 net realized gains of $924 thousand.
      • The prepayment of Federal Home Loan Bank of Boston (“FHLBB”) advances totaling $38.8 million, resulting in debt prepayment penalty expense of $1.8 million in the quarter.
      • The modification of terms of $33.2 million of FHLBB advances with a weighted average maturity of 43 months into longer-term advances with a weighted average maturity of 78 months.
      • These transactions resulted in net interest income enhancement of approximately $45 thousand in the fourth quarter of 2012 and are expected to result in net interest income enhancement of approximately $577 thousand in 2013, with continuing benefits in future years.
    • A relatively large commercial loan prepayment penalty fee of $357 thousand was received and included in net interest income.
    • Two significant insurance commission fees totaling $462 thousand were received in the quarter and reported in wealth management revenues.
    • The Corporation made a $400 thousand contribution to its charitable foundation, which was classified in other noninterest expenses.

    The net impact of these transactions was a reduction in earnings of 2 cents per diluted share in the fourth quarter of 2012.

    Net Interest Income

    The net interest margin for the fourth quarter of 2012 was 3.33%. Excluding the impact of the above mentioned commercial loan prepayment penalty fee, the net interest margin for the fourth quarter of 2012 was 3.28%, unchanged from the previous quarter and up by 6 basis points from 3.22% in the fourth quarter of 2011. The year over year improvement in the net interest margin largely reflected a reduction in the cost of funds.

    Average interest-earning assets for the fourth quarter of 2012 increased by $6.8 million from the previous quarter and by $58.7 million from the fourth quarter of 2011, reflecting solid loan growth partially offset by reductions in the securities portfolio.

    Fourth quarter 2012 net interest income amounted to $23.2 million. Excluding the fourth quarter 2012 fee, net interest income was up slightly compared to the previous quarter and up by $792 thousand, or 4%, compared to the fourth quarter of 2011.

    Noninterest Income

    Noninterest income for the fourth quarter of 2012 totaled $17.9 million, up by $966 thousand, or 6%, from the previous quarter and up by $3.1 million, or 21%, from the fourth quarter of 2011. Included in noninterest income were:

    • Fourth quarter 2012 wealth management insurance commission fees of $462 thousand mentioned above;
    • Net realized gains on sales of securities of $924 thousand in the fourth quarter of 2012;
    • A $528 thousand non-taxable gain related to the receipt of BOLI proceeds in the third quarter of 2012; and
    • $501 thousand of net realized gains on sales of securities recognized in the fourth quarter of 2011.

    Excluding these items, noninterest income for the fourth quarter of 2012 increased by $108 thousand, or 1%, from the previous quarter and up by $2.2 million, or 15%, from the fourth quarter of 2011. Significant changes in noninterest income, on this basis, included the following:

    • Mortgage banking revenues increased by $972 thousand, or 28%, from the third quarter of 2012 and by $1.5 million, or 53%, from the fourth quarter of 2011, due to a record quarter of mortgage origination and sales activity.
    • Fourth quarter 2012 wealth management revenues were $7.8 million. Excluding the above mentioned insurance commission fees, these revenues were up by $135 thousand, or 2%, on a linked quarter basis and up by $403 thousand, or 6%, compared to the fourth quarter of 2011.
    • Merchant processing fees totaled $2.2 million for the fourth quarter of 2012, down by $975 thousand, or 30%, on a linked quarter basis and up by $176 thousand, or 9%, compared to the fourth quarter of 2011. On a linked quarter basis, the decline reflects a seasonal decrease in the volume of transactions processed for customers. See discussion on the corresponding linked quarter decrease in merchant processing costs under the caption “Noninterest Expenses.”

    Noninterest Expenses

    Noninterest expenses totaled $27.4 million for the fourth quarter of 2012, up by $1.1 million, or 4%, from the previous quarter and up by $2.6 million, or 11%, from the fourth quarter of 2011. Included in noninterest expenses were:

    • Debt prepayment penalties of $1.8 million in the fourth quarter of 2012, $1.2 million in third quarter of 2012 and $473 thousand in the fourth quarter of 2011; and
    • Charitable contribution expense of $400 thousand in the fourth quarter of 2012 and $990 thousand in the fourth quarter of 2011.

    Excluding these items, noninterest expenses for the fourth quarter of 2012 increased by $130 thousand, or 1%, from the previous quarter and up by $1.9 million, or 8%, from the fourth quarter of 2011. Significant changes in noninterest expenses, on this basis, included the following:

    • Salaries and employee benefit costs amounted to $15.7 million in the fourth quarter of 2012, an increase of $447 thousand, or 3%, from the previous quarter and up by $1.7 million, or 12%, from the fourth quarter of 2011, reflecting higher staffing levels to support growth and higher levels of business development based compensation primarily in mortgage banking.
    • Merchant processing costs totaled $1.9 million in the fourth quarter of 2012, down by $804 thousand, or 30%, on a linked quarter basis and up by $138 thousand, or 8%, compared to the fourth quarter of 2011. See the discussion above regarding the corresponding linked quarter decrease in merchant processing fee income.

    Income tax expense amounted to $4.0 million for the fourth quarter of 2012, compared to $3.9 million for the third quarter of 2012 and $3.3 million for the fourth quarter of 2011. The effective tax rate for the fourth quarter of 2012 was 30.8%, compared to 30.3% for the previous quarter and 29.7% for the fourth quarter of 2011. Based on the current status of federal and applicable state income tax statutes, the Corporation currently expects the 2013 effective tax rate to be approximately 31.8%.

    Asset Quality

    Total nonaccrual loans amounted to $22.5 million, or 0.98% of total loans, at December 31, 2012, up by $4.8 million from September 30, 2012. At December 31, 2012, total past due loans amounted to $28.1 million, or 1.22% of total loans, up by $4.5 million from September 30, 2012. These changes in nonaccrual loans and past due loans are largely associated with a small number of larger commercial relationships.

    The loan loss provision charged to earnings amounted to $600 thousand for the fourth quarter of 2012, level with the third quarter of 2012 and down by $400 thousand from the fourth quarter of 2011. Net charge-offs amounted to $479 thousand in the fourth quarter of 2012, compared to net charge-offs of $296 thousand in the third quarter of 2012 and $839 thousand in the fourth quarter of 2011.

    The allowance for loan losses was $30.9 million, or 1.35% of total loans, at December 31, 2012 compared to $30.8 million, or 1.36% of total loans, at September 30, 2012.

    Loans

    Total loans rose by $37.3 million, or 2%, in the fourth quarter of 2012, with increases in commercial loans of $33.1 million. Total loans are up by $146.8 million, or 7%, from December 31, 2011, including a $127.8 million, or 11%, increase in total commercial loans.

    Investment Securities

    The investment securities portfolio amounted to $415.9 million at December 31, 2012, down by $68.0 million from September 30, 2012 and down by $177.5 million from December 31, 2011, primarily due to principal payments received on mortgage-backed securities not being reinvested and balance sheet management transactions that included the sale of mortgage-backed securities.

    Deposits and Borrowings

    Total deposits increased by $78.0 million, or 3%, in the fourth quarter of 2012 and by $186.3 million, or 9%, since December 31, 2011, reflecting growth in lower-cost non-time categories of deposits.

    FHLBB advances totaled $361.2 million at December 31, 2012, down by $56.5 million from September 30, 2012 and down by $179.3 million from December 31, 2011. In addition to balance sheet management transactions, this decline reflects less demand for wholesale funding due to the strong deposit growth.

    Other borrowings were $1.2 million at December 31, 2012, compared to $229 thousand at September 30, 2012 and $19.8 million at December 31, 2011. The 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 13.26% at December 31, 2012, compared to 12.86% at December 31, 2011. Total shareholder's equity was $295.7 million at December 31, 2012, down by $2.7 million from the balance at September 30, 2012 and up by $14.3 million from the balance at December 31, 2011. A charge of $6.1 million to the accumulated other comprehensive income component of shareholders' equity was recorded at December 31, 2012, associated with the periodic remeasurement of the value of defined benefit pension liabilities. This charge was largely due to a decline in the discount rates used to measure the present value of pension liabilities as a result of a reduction in market rates of interest.

    Dividends Declared

    The Board of Directors declared a quarterly dividend of 24 cents per share for the quarter ended December 31, 2012. The dividend was paid on January 11, 2013 to shareholders of record on January 2, 2013.

    Conference Call

    Washington Trust will host a conference call on Thursday, January 31, 2013 at 8:30 a.m. Eastern Time to discuss fourth 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 1-866-250-8117. The international dial-in number is 1-412-317-6011 and the Canada dial-in number is 1-855-669-9657. 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 10023365. The replay will be available until 9:00 a.m. on February 15, 2013.

    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: continued weakness 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, 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)  

    Dec 31,
    2012

     

    Dec 31,
    2011

    Assets:    
    Cash and due from banks $73,474$82,238
    Short-term investments 19,176 4,782
    Mortgage loans held for sale, at fair value; amortized cost $48,370 in 2012 and $19,624 in 2011 50,056 20,340
    Securities:
    Available for sale, at fair value; amortized cost $363,408 in 2012 and $524,036 in 2011 375,498 541,253
    Held to maturity, at cost; fair value $41,420 in 2012 and $52,499 in 2011   40,381     52,139  
    Total securities 415,879 593,392
    Federal Home Loan Bank stock, at cost 40,418 42,008
    Loans:
    Commercial and other 1,252,419 1,124,628
    Residential real estate 717,681 700,414
    Consumer   323,903     322,117  
    Total loans 2,294,003 2,147,159
    Less allowance for loan losses   30,873     29,802  
    Net loans 2,263,130 2,117,357
    Premises and equipment, net 27,232 26,028
    Investment in bank-owned life insurance 54,823 53,783
    Goodwill 58,114 58,114
    Identifiable intangible assets, net 6,173 6,901
    Other assets   63,409     59,155  
    Total assets   $3,071,884     $3,064,098  
    Liabilities:
    Deposits:
    Demand deposits $379,889$339,809
    NOW accounts 291,174 257,031
    Money market accounts 496,402 406,777
    Savings accounts 274,934 243,904
    Time deposits   870,232     878,794  
    Total deposits 2,312,631 2,126,315
    Federal Home Loan Bank advances 361,172 540,450
    Junior subordinated debentures 32,991 32,991
    Other borrowings 1,212 19,758
    Other liabilities   68,226     63,233  
    Total liabilities   2,776,232     2,782,747  
    Shareholders’ Equity:

    Common stock of $.0625 par value; authorized 30,000,000 shares; issued and outstanding 16,379,771 shares in 2012 and 16,292,471 shares in 2011

    1,024 1,018
    Paid-in capital 91,453 88,030
    Retained earnings 213,674 194,198
    Accumulated other comprehensive loss   (10,499 )   (1,895 )
    Total shareholders’ equity   295,652     281,351  
    Total liabilities and shareholders’ equity   $3,071,884     $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   Twelve Months
    Periods ended December 31,   2012   2011   2012   2011
    Interest income:      
    Interest and fees on loans $26,109$25,284$102,656$99,319
    Interest on securities: Taxable 3,241 4,422 15,359 18,704
    Nontaxable 664 727 2,699 3,001
    Dividends on corporate stock and Federal Home Loan Bank stock 49 57 256 253
    Other interest income   27     17     91     69  
    Total interest income   30,090     30,507     121,061     121,346  
    Interest expense:
    Deposits 3,380 3,652 13,590 15,692
    Federal Home Loan Bank advances 3,148 4,202 14,957 18,158
    Junior subordinated debentures 394 393 1,570 1,568
    Other interest expense   4     245     248     973  
    Total interest expense   6,926     8,492     30,365     36,391  
    Net interest income 23,164 22,015 90,696 84,955
    Provision for loan losses   600     1,000     2,700     4,700  
    Net interest income after provision for loan losses   22,564     21,015     87,996     80,255  
    Noninterest income:
    Wealth management services:
    Trust and investment advisory fees 5,991 5,487 23,465 22,532
    Mutual fund fees 1,018 994 4,069 4,287
    Financial planning, commissions and other service fees   781     444     2,107     1,487  
    Wealth management services 7,790 6,925 29,641 28,306
    Service charges on deposit accounts 837 793 3,193 3,455
    Merchant processing fees 2,232 2,056 10,159 9,905
    Card interchange fees 636 584 2,480 2,249
    Income from bank-owned life insurance 479 493 2,448 1,939
    Net gains on loan sales and commissions on loans originated for others 4,476 2,935 14,092 5,074
    Net realized gains on securities 924 501 1,223 698
    Net gains on interest rate swap contracts 168 12 255 6
    Equity in earnings (losses) of unconsolidated subsidiaries 82 220 196 (213 )
    Other income   275     307     1,748     1,536  
    Noninterest income, excluding other-than-temporary impairment losses 17,899 14,826 65,435 52,955
    Total other-than-temporary impairment losses on securities 57 (28 ) (54 )
    Portion of loss recognized in other comprehensive income (before tax)   (69 )       (193 )   (137 )
    Net impairment losses recognized in earnings   (12 )       (221 )   (191 )
    Total noninterest income   17,887     14,826     65,214     52,764  
    Noninterest expense:
    Salaries and employee benefits 15,661 13,957 59,786 51,095
    Net occupancy 1,518 1,376 6,039 5,295
    Equipment 1,222 1,133 4,640 4,344
    Merchant processing costs 1,903 1,765 8,593 8,560
    Outsourced services 900 920 3,560 3,530
    FDIC deposit insurance costs 419 429 1,730 2,043
    Legal, audit and professional fees 641 538 2,240 1,927
    Advertising and promotion 435 478 1,730 1,819
    Amortization of intangibles 173 246 728 951
    Foreclosed property costs 158 329 762 878
    Debt prepayment penalties 1,774 473 3,908 694
    Other expenses   2,617     3,130     8,622     9,237  
    Total noninterest expense   27,421     24,774     102,338     90,373  
    Income before income taxes 13,030 11,067 50,872 42,646
    Income tax expense   4,007     3,290     15,798     12,922  
    Net income   $9,023     $7,777     $35,074     $29,724  
     
    Weighted average common shares outstanding - basic 16,376 16,288 16,358 16,254
    Weighted average common shares outstanding - diluted 16,425 16,326 16,401 16,284
    Per share information: Basic earnings per common share $0.55$0.48$2.13$1.82
    Diluted earnings per common share $0.55$0.47$2.13$1.82
    Cash dividends declared per share $0.24$0.22$0.94$0.88
     
     
    Washington Trust Bancorp, Inc. and Subsidiaries
    SELECTED FINANCIAL HIGHLIGHTS (unaudited)
     
      At or for the Quarters Ended
    (Dollars and shares in thousands, except per share amounts)   Dec 31,
    2012
      Sep 30,
    2012
      Jun 30,
    2012
      Mar 31,
    2012
      Dec 31,
    2011
    Financial Data:        
    Total assets $3,071,884$3,048,868$3,041,050$3,028,690$3,064,098
    Total loans 2,294,003 2,256,697 2,213,842 2,155,359 2,147,159
    Total securities 415,879 483,858 516,193 558,284 593,392
    Total deposits 2,312,631 2,234,659 2,130,453 2,145,562 2,126,315
    Total shareholders' equity 295,652 298,394 292,734 287,935 281,351
    Net interest income 23,164 22,736 22,411 22,385 22,015
    Provision for loan losses 600 600 600 900 1,000
    Noninterest income, excluding OTTI losses 17,899 16,921 16,174 14,441 14,826
    Net OTTI losses recognized in earnings (12 ) (209 )
    Noninterest expenses 27,421 26,290 25,228 23,399 24,774
    Income tax expense 4,007 3,867 4,044 3,880 3,290
    Net income 9,023 8,900 8,713 8,438 7,777
     
    Share Data:
    Basic earnings per common share $0.55$0.54$0.53$0.51$0.48
    Diluted earnings per common share $0.55$0.54$0.53$0.51$0.47
    Dividends declared per share $0.24$0.24$0.23$0.23$0.22
    Book value per share $18.05$18.23$17.89$17.61$17.27
    Tangible book value per share - Non-GAAP (1) $14.13$14.29$13.94$13.64$13.28
    Market value per share $26.31$26.27$24.38$24.14$23.86
    Shares outstanding at end of period 16,380 16,371 16,359 16,354 16,292
    Weighted average common shares outstanding - basic 16,376 16,366 16,358 16,330 16,288
    Weighted average common shares outstanding - diluted 16,425 16,414 16,392 16,370 16,327
     
    Key Ratios:
    Return on average assets 1.19 % 1.17 % 1.16 % 1.11 % 1.04 %
    Return on average tangible assets - Non-GAAP (1) 1.21 % 1.19 % 1.18 % 1.14 % 1.07 %
    Return on average equity 12.01 % 12.02 % 11.98 % 11.85 % 10.89 %
    Return on average tangible equity - Non-GAAP (1) 15.29 % 15.37 % 15.41 % 15.35 % 14.10 %
     
    Capital Ratios:
    Tier 1 risk-based capital 12.01% (i) 11.93 % 11.90 % 11.96 % 11.61 %
    Total risk-based capital 13.26% (i) 13.18 % 13.15 % 13.22 % 12.86 %
    Tier 1 leverage ratio 9.30% (i) 9.11 % 9.00 % 8.75 % 8.70 %
    Equity to assets 9.62 % 9.79 % 9.63 % 9.51 % 9.18 %
    Tangible equity to tangible assets - Non-GAAP (1) 7.69 % 7.84 % 7.66 % 7.53 % 7.21 %
    (i) - estimated
     
    Wealth Management Assets under Administration:
    Balance at beginning of period $4,242,520$4,079,913$4,196,447$3,900,061$3,728,837
    Net investment (depreciation) appreciation & income (5,887 ) 155,427 (131,896 ) 298,155 215,449
    Net client cash flows (36,993 ) 7,180 15,362 (1,769 ) (36,815 )
    Other (2)                   (7,410 )
    Balance at end of period   $4,199,640     $4,242,520     $4,079,913     $4,196,447     $3,900,061  

    (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)
     
      Twelve Months Ended
    (Dollars and shares in thousands, except per share amounts)   Dec 31,
    2012
      Dec 31,
    2011
    Financial Data:  
    Net interest income $90,696$84,955
    Provision for loan losses 2,700 4,700
    Noninterest income, excluding OTTI losses 65,435 52,955
    Net OTTI losses recognized in earnings (221 ) (191 )
    Noninterest expenses 102,338 90,373
    Income tax expense 15,798 12,922
    Net income 35,074 29,724
     
    Share Data:
    Basic earnings per common share $2.13$1.82
    Diluted earnings per common share $2.13$1.82
    Dividends declared per share $0.94$0.88
    Weighted average common shares outstanding - basic 16,358 16,254
    Weighted average common shares outstanding - diluted 16,401 16,284
     
    Key Ratios:
    Return on average assets 1.16 % 1.02 %
    Return on average tangible assets - Non-GAAP (1) 1.18 % 1.04 %
    Return on average equity 11.97 % 10.61 %
    Return on average tangible equity - Non-GAAP (1) 15.35 % 13.85 %
     
    Asset Quality Data:
    Allowance for Loan Losses:
    Balance at beginning of period $29,802$28,583
    Provision charged to earnings 2,700 4,700
    Charge-offs (2,335 ) (3,834 )
    Recoveries   706     353  
    Balance at end of period   $30,873     $29,802  
     
    Net Loan Charge-Offs (Recoveries):
    Commercial mortgages $43$953
    Other commercial 1,076 1,374
    Residential real estate mortgages 257 637
    Consumer   253     517  
    Total   $1,629     $3,481  
     
    Net charge-offs to average loans (annualized) 0.07 % 0.17 %
     
    Wealth Management Assets Under Administration:
    Balance at beginning of period $3,900,061$3,967,207
    Net investment appreciation (depreciation) & income 315,799 (12,324 )
    Net client cash flows (16,220 ) (47,412 )
    Other (2)       (7,410 )
    Balance at end of period   $4,199,640     $3,900,061  

    (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
        Dec 31,
    2012
      Sep 30,
    2012
      Jun 30,
    2012
      Mar 31,
    2012
      Dec 31,
    2011
    Average Yield / Rate (taxable equivalent basis):        
    Assets:
    Commercial mortgages and other commercial loans 4.90 % 4.94 % 5.03 % 5.13 % 5.19 %
    Residential real estate loans, including mortgage loans held for sale 4.23 % 4.32 % 4.40 % 4.51 % 4.46 %
    Consumer loans 3.86 % 3.89 % 3.85 % 3.89 % 3.87 %
    Total loans 4.53 % 4.59 % 4.65 % 4.74 % 4.74 %
    Cash, federal funds sold and other short-term investments 0.26 % 0.26 % 0.23 % 0.15 % 0.19 %
    FHLBB stock 0.48 % 0.51 % 0.54 % 0.50 % 0.30 %
    Taxable debt securities 3.49 % 3.50 % 3.63 % 3.62 % 3.58 %
    Nontaxable debt securities 5.89 % 5.83 % 5.93 % 5.92 % 5.82 %
    Corporate stocks 7.58 % 7.16 % 5.89 %
    Total securities 3.86 % 3.83 % 3.95 % 3.93 % 3.88 %
    Total interest-earning assets 4.31 % 4.34 % 4.41 % 4.43 % 4.44 %
    Liabilities:
    NOW accounts 0.07 % 0.06 % 0.06 % 0.08 % 0.10 %
    Money market accounts 0.28 % 0.26 % 0.23 % 0.22 % 0.24 %
    Savings accounts 0.09 % 0.11 % 0.11 % 0.11 % 0.12 %
    Time deposits 1.32 % 1.33 % 1.35 % 1.41 % 1.45 %
    FHLBB advances 3.27 % 3.18 % 3.25 % 3.14 % 3.44 %
    Junior subordinated debentures 4.75 % 4.74 % 4.77 % 4.78 % 4.73 %
    Other 5.51 % 6.33 % 2.07 % 4.98 % 4.59 %
    Total interest-bearing liabilities 1.19 % 1.27 % 1.33 % 1.38 % 1.45 %
     
    Interest rate spread (taxable equivalent basis) 3.12 % 3.07 % 3.08 % 3.05 % 2.99 %
    Net interest margin (taxable equivalent basis) 3.33 % 3.28 % 3.30 % 3.27 % 3.22 %
     
    At December 31, 2012
    Amortized   Unrealized   Unrealized   Fair
    (Dollars in thousands)   Cost (1)   Gains   Losses   Value
    Securities Available for Sale:
    Obligations of U.S. government-sponsored enterprises $29,458$2,212 $— $31,670
    Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises 217,136 14,097 231,233
    States and political subdivisions 68,196 4,424 72,620
    Trust preferred securities:
    Individual name issuers 30,677 (5,926 ) 24,751
    Collateralized debt obligations 4,036 (3,193 ) 843
    Corporate bonds   13,905     476         14,381
    Total securities available for sale   363,408     21,209     (9,119 )   375,498
    Held to Maturity:
    Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises   40,381     1,039         41,420
    Total securities held to maturity   40,381     1,039         41,420
    Total securities   $403,789     $22,248     ($9,119 )   $416,918

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

     
    Washington Trust Bancorp, Inc. and Subsidiaries
    SELECTED FINANCIAL HIGHLIGHTS (unaudited)
     
      Period End Balances At
    (Dollars in thousands)   Dec 31,
    2012
      Sep 30,
    2012
      Jun 30,
    2012
      Mar 31,
    2012
      Dec 31,
    2011
    Loans:        
    Commercial:   Mortgages $710,813$693,221$664,410$642,012$624,813
    Construction & development 27,842 25,132 17,365 11,130 10,955
        Other   513,764     500,974     510,220     486,258     488,860
    Total commercial 1,252,419 1,219,327 1,191,995 1,139,400 1,124,628
    Residential real estate: Mortgages 692,798 692,659 680,772 675,249 678,582
        Homeowner construction   24,883     22,753     21,247     21,708     21,832
    Total residential real estate 717,681 715,412 702,019 696,957 700,414
    Consumer: Home equity lines 226,861 227,549 224,550 223,311 223,430
    Home equity loans 39,329 39,452 40,690 40,793 43,121
        Other   57,713     54,957     54,588     54,898     55,566
        Total consumer   323,903     321,958     319,828     319,002     322,117
        Total loans   $2,294,003     $2,256,697     $2,213,842     $2,155,359     $2,147,159
     
    At December 31, 2012
    (Dollars in thousands)   Balance   % of Total
    Commercial Real Estate Loans by Property Location:  
    Rhode Island, Connecticut, Massachusetts$707,068 95.7 %
    New York 22,081 3.0 %
    New Hampshire 9,290 1.3 %
    Other   216      
    Total commercial real estate loans (1)   $738,655     100.0 %

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

     
      At December 31, 2012
    (Dollars in thousands)   Balance   % of Total
    Residential Mortgages by Property Location:  
    Rhode Island, Connecticut, Massachusetts$697,814 97.2 %
    New York, Virginia, New Jersey, Maryland, Pennsylvania, District of Columbia 9,591 1.3 %
    New Hampshire 3,903 0.5 %
    Ohio 2,953 0.4 %
    Washington, Oregon 1,379 0.2 %
    Georgia 1,101 0.2 %
    New Mexico 476 0.1 %
    Other   464     0.1 %
    Total residential mortgages   $717,681     100.0 %
     
    Period End Balances At
    (Dollars in thousands)   Dec 31,
    2012
      Sep 30,
    2012
      Jun 30,
    2012
      Mar 31,
    2012
      Dec 31,
    2011
    Deposits:        
    Demand deposits $379,889$352,330$321,488$333,833$339,809
    NOW accounts 291,174 267,495 263,124 258,986 257,031
    Money market accounts 496,402 459,671 388,686 400,396 406,777
    Savings accounts 274,934 268,191 264,772 257,495 243,904
    Time deposits   870,232     886,972     892,383     894,852     878,794
    Total deposits   $2,312,631     $2,234,659     $2,130,453     $2,145,562     $2,126,315
     
    Out-of-market brokered certificates of deposits included in time deposits $102,636$98,603$102,661$95,989$90,073
    In-market deposits, excluding out-of-market brokered certificates of deposit $2,209,995$2,136,056$2,027,792$2,049,573$2,036,242
     
     
    Washington Trust Bancorp, Inc. and Subsidiaries
    SELECTED FINANCIAL HIGHLIGHTS (unaudited)
     
      Period End Balances At
    (Dollars in thousands)   Dec 31,
    2012
      Sep 30,
    2012
      Jun 30,
    2012
      Mar 31,
    2012
      Dec 31,
    2011
    Asset Quality Data:        
    Nonperforming Assets:
    Commercial mortgages $10,681$5,956$2,597$5,099$5,709
    Commercial construction and development

    Other commercial 4,412 3,201 3,405 4,200 3,708
    Residential real estate mortgages 6,158 7,127 8,659 9,031 10,614
    Consumer   1,292     1,463     1,081     1,069     1,206  
    Total nonaccrual loans $22,543$17,747$15,742$19,399$21,237
    Nonaccrual investment securities 843 929 767 750 887
    Property acquired through foreclosure or repossession   2,047     2,447     2,332     3,478    

    2,647

     
    Total nonperforming assets   $25,433     $21,123     $18,841     $23,627     $24,771  
     
    Total past due loans to total loans 1.22 % 1.05 % 0.92 % 0.98 % 1.22 %
    Nonperforming assets to total assets 0.83 % 0.69 % 0.62 % 0.78 % 0.81 %
    Nonaccrual loans to total loans 0.98 % 0.79 % 0.71 % 0.90 % 0.99 %
    Allowance for loan losses to nonaccrual loans 136.95 % 173.28 % 193.42 % 154.88 % 140.33 %
    Allowance for loan losses to total loans 1.35 % 1.36 % 1.38 % 1.39 % 1.39 %
     
    Troubled Debt Restructured Loans:
    Accruing troubled debt restructured loans:
    Commercial mortgages $9,569$9,131$1,251$1,059$6,389
    Other commercial 6,577 6,880 6,916 7,329 6,625
    Residential real estate mortgages 1,123 386 570 935 1,481
    Consumer   154     158     159     174     171  
    Accruing troubled debt restructured loans   17,423     16,555     8,896     9,497     14,666  
    Nonaccrual troubled debt restructured loans:
    Commercial mortgages 348 91
    Other commercial 2,063 2,306 2,317 2,361 2,154
    Residential real estate mortgages 688 1,697 2,028 1,904 2,615
    Consumer   44     46     47     35     106  
    Nonaccrual troubled debt restructured loans   2,795     4,049     4,392     4,648     4,966  
    Total troubled debt restructured loans   $20,218     $20,604     $13,288     $14,145     $19,632  
     
     
    Washington Trust Bancorp, Inc. and Subsidiaries
    SELECTED FINANCIAL HIGHLIGHTS (unaudited)
     
      Period End Balances At
    (Dollars in thousands)   Dec 31,
    2012
      Sep 30,
    2012
      Jun 30,
    2012
      Mar 31,
    2012
      Dec 31,
    2011
    Past Due Loans:        
    Loans 30-59 Days Past Due:
    Commercial mortgages $373$3,978$411$104$1,621
    Other commercial loans 260 2,719 849 1,031 3,760
    Residential real estate mortgages 4,840 2,368 4,969 4,468 3,969
    Consumer loans   1,134     1,876     2,660     2,404     1,073
    Loans 30-59 days past due   $6,607     $10,941     $8,889     $8,007     $10,423
     
    Loans 60-89 Days Past Due:
    Commercial mortgages $408$874$233 $— $315
    Other commercial loans 296 1,169 434 33 982
    Residential real estate mortgages 1,951 821 1,600 488 1,505
    Consumer loans   385     1,213     677     219     263
    Loans 60-89 days past due   $3,040     $4,077     $2,944     $740     $3,065
     
    Loans 90 Days or more Past Due:
    Commercial mortgages $10,300$2,495$2,339$4,676$4,995
    Other commercial loans 3,647 1,366 1,714 2,521 633
    Residential real estate mortgages 3,658 3,924 4,039 4,843 6,283
    Consumer loans   844     811     362     326     874
    Loans 90 days or more past due   $18,449     $8,596     $8,454     $12,366     $12,785
     
    Total Past Due Loans:
    Commercial mortgages $11,081$7,347$2,983$4,780$6,931
    Other commercial loans 4,203 5,254 2,997 3,585 5,375
    Residential real estate mortgages 10,449 7,113 10,608 9,799 11,757
    Consumer loans   2,363     3,900     3,699     2,949     2,210
    Total past due loans   $28,096     $23,614     $20,287     $21,113     $26,273
     
    Nonaccrual loans included in past due loans $20,979$14,471$12,719$14,747$17,588
     
    For the Quarters Ended
    (Dollars in thousands)   Dec 31,
    2012
      Sep 30,
    2012
      Jun 30,
    2012
      Mar 31,
    2012
      Dec 31,
    2011
    Allowance for Loan Losses:        
    Balance at beginning of period $30,752$30,448$30,045$29,802$29,641
    Provision charged to earnings 600 600 600 900 1,000
    Charge-offs (534 ) (424 ) (696 ) (681 ) (920 )
    Recoveries   55     128     499     24     81  
    Balance at end of period   $30,873     $30,752     $30,448     $30,045     $29,802  
     
    Net Loan Charge-Offs (Recoveries):
    Commercial mortgages $212$212 ($388 ) $7$249
    Other commercial 225 (22 ) 549 324 39
    Residential real estate mortgages 39 41 (47 ) 224 273
    Consumer   3     65     83     102     278  
    Total   $479     $296     $197     $657     $839  
     

    The following tables present average balance and interest rate information. Tax-exempt income is converted to a fully taxable equivalent basis using the statutory federal income tax rate adjusted for applicable state income taxes, net of the related federal tax benefit. For dividends on corporate stocks, the 70% federal dividends received deduction is also used in the calculation of tax equivalency. Unrealized gains (losses) on available for sale securities are excluded from the average balance and yield calculations. Nonaccrual and renegotiated loans, as well as interest earned on these loans (to the extent recognized in the Consolidated Statements of Income) are included in amounts presented for loans.

     
    Washington Trust Bancorp, Inc. and Subsidiaries
    CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited)
     
    Three months ended December 31,   2012   2011
     

    Average
    Balance

      Interest  

    Yield/
    Rate

     

    Average
    Balance

      Interest  

    Yield/
    Rate

    (Dollars in thousands)          
    Assets:  
    Commercial mortgages and other commercial loans $1,227,120$15,121 4.90 % $1,082,834$14,159 5.19 %
    Residential real estate loans, including mortgage loans held for sale 757,764 8,049 4.23 % 717,250 8,065 4.46 %
    Consumer loans   322,476   3,131     3.86 %   323,339     3,155   3.87 %
    Total loans 2,307,360 26,301 4.53 % 2,123,423 25,379 4.74 %
    Cash, federal funds sold and short-term investments 42,056 27 0.26 % 35,429 17 0.19 %
    FHLBB stock 40,418 49 0.48 % 42,008 32 0.30 %
     
    Taxable debt securities 369,736 3,241 3.49 % 490,589 4,422 3.58 %
    Nontaxable debt securities 68,198 1,010 5.89 % 75,352 1,105 5.82 %
    Corporate stocks             2,291     34   5.89 %
    Total securities   437,934   4,251     3.86 %   568,232     5,561   3.88 %
    Total interest-earning assets 2,827,768 30,628 4.31 % 2,769,092 30,989 4.44 %
    Noninterest-earning assets   216,996           214,556          
    Total assets   $3,044,764           $2,983,648          
    Liabilities and Shareholders' Equity:
    NOW accounts $276,572$49 0.07 % $243,241$63 0.10 %
    Money market accounts 473,747 338 0.28 % 402,652 245 0.24 %
    Savings accounts 271,716 60 0.09 % 239,110 70 0.12 %
    Time deposits 886,355 2,933 1.32 % 897,535 3,274 1.45 %
    FHLBB advances 382,465 3,148 3.27 % 484,537 4,202 3.44 %
    Junior subordinated debentures 32,991 394 4.75 % 32,991 393 4.73 %
    Other   289   4     5.51 %   21,194     245   4.59 %
    Total interest-bearing liabilities 2,324,135 6,926 1.19 % 2,321,260 8,492 1.45 %
    Demand deposits 362,060 330,027
    Other liabilities 58,139 46,654
    Shareholders' equity   300,430           285,707          
    Total liabilities and shareholders' equity   $3,044,764           $2,983,648          
    Net interest income (FTE)       $23,702             $22,497    
    Interest rate spread 3.12 % 2.99 %
    Net interest margin           3.33 %           3.22 %
     

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

    (Dollars in thousands)    
     
    Three months ended December 31,   2012   2011
    Commercial loans $192$95
    Nontaxable debt securities 346 376
    Corporate stocks       11
    Total   $538     $482
     
     
    Washington Trust Bancorp, Inc. and Subsidiaries
    CONSOLIDATED AVERAGE BALANCE SHEETS (unaudited)
     
    Twelve months ended December 31,   2012   2011
     

    Average
    Balance

      Interest  

    Yield/
    Rate

     

    Average
    Balance

      Interest  

    Yield/
    Rate

    (Dollars in thousands)          
    Assets:  
    Commercial mortgages and other commercial loans $1,177,268$58,823 5.00 % $1,063,322$55,592 5.23 %
    Residential real estate loans, including mortgage loans held for sale 733,178 31,974 4.36 % 678,697 31,447 4.63 %
    Consumer loans   320,828   12,428   3.87 %   324,002   12,649   3.90 %
    Total loans 2,231,274 103,225 4.63 % 2,066,021 99,688 4.83 %
    Cash, federal funds sold and short-term investments 41,359 91 0.22 % 35,625 69 0.19 %
    FHLBB stock 40,713 207 0.51 % 42,008 124 0.30 %
     
    Taxable debt securities 431,024 15,359 3.56 % 489,210 18,704 3.82 %
    Nontaxable debt securities 69,838 4,115 5.89 % 77,634 4,555 5.87 %
    Corporate stocks   910   68   7.47 %   2,456   177   7.21 %
    Total securities   501,772   19,542   3.89 %   569,300   23,436   4.12 %
    Total interest-earning assets 2,815,118 123,065 4.37 % 2,712,954 123,317 4.55 %
    Noninterest-earning assets   221,031           214,214        
    Total assets   $3,036,149           $2,927,168        
    Liabilities and Shareholders' Equity:
    NOW accounts $259,595$175 0.07 % $232,545$242 0.10 %
    Money market accounts 430,262 1,078 0.25 % 392,002 1,051 0.27 %
    Savings accounts 261,795 276 0.11 % 229,180 286 0.12 %
    Time deposits 893,474 12,061 1.35 % 925,064 14,113 1.53 %
    FHLBB advances 466,424 14,957 3.21 % 492,714 18,158 3.69 %
    Junior subordinated debentures 32,991 1,570 4.76 % 32,991 1,568 4.75 %
    Other   5,093   248   4.87 %   21,891   973   4.44 %
    Total interest-bearing liabilities 2,349,634 30,365 1.29 % 2,326,387 36,391 1.56 %
    Demand deposits 338,046 278,120
    Other liabilities 55,382 42,554
    Shareholders' equity   293,087           280,107        
    Total liabilities and shareholders' equity   $3,036,149           $2,927,168        
    Net interest income (FTE)       $92,700           $86,926    
    Interest rate spread 3.08 % 2.99 %
    Net interest margin           3.29 %           3.20 %
     

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

    (Dollars in thousands)    
     
    Twelve months ended December 31,   2012   2011
    Commercial loans $569$369
    Nontaxable debt securities 1,416 1,553
    Corporate stocks   19     49
    Total   $2,004     $1,971
     
     
    Washington Trust Bancorp, Inc. and Subsidiaries
    SUPPLEMENTAL INFORMATION - Non-GAAP Financial Measures (unaudited)
     
      At or for the Quarters Ended
    (Dollars in thousands, except per share amounts)   Dec 31,
    2012
      Sep 30,
    2012
      Jun 30,
    2012
      Mar 31,
    2012
      Dec 31,
    2011
    Calculation of Tangible Book Value per Share:        
    Total shareholders' equity at end of period $295,652$298,394$292,734$287,935$281,351
    Less:
    Goodwill 58,114 58,114 58,114 58,114 58,114
    Identifiable intangible assets, net   6,173     6,346     6,528     6,714     6,901  
    Total tangible shareholders' equity at end of period   $231,365     $233,934     $228,092     $223,107     $216,336  
     
    Shares outstanding at end of period   16,380     16,371     16,359     16,354     16,292  
     
    Book value per share - GAAP   $18.05     $18.23     $17.89     $17.61     $17.27  
    Tangible book value per share - Non-GAAP   $14.13     $14.29     $13.94     $13.64     $13.28  
     
    Calculation of Tangible Equity to Tangible Assets:
    Total tangible shareholders' equity at end of period   $231,365     $233,934     $228,092     $223,107     $216,336  
     
    Total assets at end of period $3,071,884$3,048,868$3,041,050$3,028,690$3,064,098
    Less:
    Goodwill 58,114 58,114 58,114 58,114 58,114
    Identifiable intangible assets, net   6,173     6,346     6,528     6,714     6,901  
    Total tangible assets at end of period   $3,007,597     $2,984,408     $2,976,408     $2,963,862     $2,999,083  
     
    Equity to assets - GAAP   9.62 %   9.79 %   9.63 %   9.51 %   9.18 %
    Tangible equity to tangible assets - Non-GAAP   7.69 %   7.84 %   7.66 %   7.53 %   7.21 %
     
    Calculation of Return on Average Tangible Assets:
    Net income   $9,023     $8,900     $8,713     $8,438     $7,777  
     
    Total average assets $3,044,764$3,045,203$3,017,167$3,037,270$2,983,648
    Less:
    Average goodwill 58,114 58,114 58,114 58,114 58,114
    Average identifiable intangible assets, net   6,257     6,434     6,619     6,805     7,025  
    Total average tangible assets   $2,980,393     $2,980,655     $2,952,434     $2,972,351     $2,918,509  
     
    Return on average assets - GAAP   1.19 %   1.17 %   1.16 %   1.11 %   1.04 %
    Return on average tangible assets - Non-GAAP   1.21 %   1.19 %   1.18 %   1.14 %   1.07 %
     
    Calculation of Return on Average Tangible Equity:
    Net income   $9,023     $8,900     $8,713     $8,438     $7,777  
     
    Total average shareholders' equity $300,430$296,150$290,854$284,801$285,707
    Less:
    Average goodwill 58,114 58,114 58,114 58,114 58,114
    Average identifiable intangible assets, net   6,257     6,434     6,619     6,805     7,025  
    Total average tangible shareholders' equity   $236,059     $231,602     $226,121     $219,882     $220,568  
     
    Return on average shareholders' equity - GAAP   12.01 %   12.02 %   11.98 %   11.85 %   10.89 %
    Return on average tangible shareholders' equity - Non-GAAP   15.29 %   15.37 %   15.41 %   15.35 %   14.10 %
     
     
    Washington Trust Bancorp, Inc. and Subsidiaries
    SUPPLEMENTAL INFORMATION - Non-GAAP Financial Measures (unaudited)
     
      Twelve Months Ended
    (Dollars in thousands)   Dec 31,
    2012
      Dec 31,
    2011
    Calculation of Return on Average Tangible Assets:  
    Net income   $35,074     $29,724  
     
    Total average assets $3,036,149$2,927,168
    Less:
    Average goodwill 58,114 58,114
    Average identifiable intangible assets, net   6,528     7,374  
    Total average tangible assets   $2,971,507     $2,861,680  
     
    Return on average assets - GAAP   1.16 %   1.02 %
    Return on average tangible assets - Non-GAAP   1.18 %   1.04 %
     
     
    Calculation of Return on Average Tangible Equity:
    Net income   $35,074     $29,724  
     
    Total average shareholders' equity $293,087$280,107
    Less:
    Average goodwill 58,114 58,114
    Average identifiable intangible assets, net   6,528     7,374  
    Total average tangible shareholders' equity   $228,445     $214,619  
     
    Return on average shareholders' equity - GAAP   11.97 %   10.61 %
    Return on average tangible shareholders' equity - Non-GAAP   15.35 %   13.85 %

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

    Source: Washington Trust Bancorp, Inc.